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Cloth of Distinction. 


Hblk&d and Sherry 

‘ LONDON J 

I Showroom: 7 !s Warwick St-T.andon\\lA 3 AO 
I Telephone; 01-437 WU4 

« 

^^BgroTTlKUncTOfLKiIgiar Grout*. 


No; 27,596 


Wednesday June 28 1978 


CONTINEWT AL SELLING PRICES* AUSTRIA Sdi.lS: BELGIUM Fr-25; DENMARK KrJ.S; FRANCE Fr.3.0; GERMANE DM2.0: ITALY L.500: NETHERLANDS Fl.2.0; NORWAY KrJS 



NEWS ' SI \1:VE\R\ 


BSC chief warns 

Rebels Equities I of danger to UK ; 


■GENERAL 


BUSINESS 


^rrr 


I 

I 




envoys 

our Rhodesian United African 
idl officials were killed last 
week while setting up peace 
talks in the hush. 

■ The UANC did not give 
details of how the officials died 
or who was responsible. Un- 
official reports reaching London 
said that they had been shot by 
errilJas .when they arrived at 
a pre-arranged venue near Fort 
Victoria to make peace over- 
tures. 

At the same time the Govern- 
ment announced that a further 
37 people, including 19 black 
civilians, bad died in the war in 
the previous 48 hours. Yester- 
day's casualty figures follow the 
mission massacre last Friday of 
12 Britons. 

Tory anger 


In London, the Conservative 
V--. Party is pressing for a Commons 
motion censuring Dr. David 
Owen, the Foreign Secretary, for 
his Rhodesian policy. The Tories 
are also seeking a major debate 

S , on Rhodesia before the summer 
. recess. 

Mrs. Thatcher, the Tory leader, 
ir is considering sending a personal 
i envoy to Rhodesia on a fact- 
L -flnriin p mission. Back and 
? Page J8 

^Repatriation 
^policy denial 

f'Mr. ' William Whitelaw. Tory 
£Home Affairs spokesman, said 
£ that a Conservative government 
rEwould not adopt enforced repat- 
Ejf. riatfcm of immigrants. Neither 
|e would it seek to introduce 
j§f -identity cards as a way of check- 
't&Ving illegal immigration. Page 12 

lyemen meeting 

fry Arab League foreign ministers 
f& -will meet in Cairo on .Saturday. 
Et to-dlscuss recent events In North 
ighd- SoutirYemen. Page 5, 
Editorial comment. Page 18 - 

rtf* V- 

Ison report 

The Advisory Council on. the 
^ Penal System has proposed big 
jurats in prison sentences, ' in a 
Report to the Home Secretary. 
'Recommendations ' include maxi- 
..’ipum seven-year sentences for 
$ ; iape, kidnapping and hijacking. 

Slander charges 

[ V' Soviet, authorities have released 
‘ 7U.S. 'businessman Mr. Francis 
i Crawford from a KGB jail but 
ordered two- reporters-^ 
the New York Times and 
Baltimore Sun— to answer 
ier. charges. Page 3 

rtrtam battles 

lain forces claim to have 
d out two Cambodian army 
tlions during a week of 
er battles inside Vietnam. 

-5.- . 


20 points 


• EQUITIES rallied in oversold 
conditions, generally dosing at 
the day’s best. FT 30-share Index 
closed 3.3 up at 456.3. Gold 
mines index fell 0.5 to 157.6- 

• GILTS staged a technical 
rally, with gains to Govern- 
ment Securities Index rose 6.37 
to 69.25. 

• GOLD lost to $184 j. 

• STERLING fell 20 points to 
SL8475. Its trade-weighted index 
was 61.3 (unchanged). Dollar’s 
average depreciation stayed at 
6.8 per cent. In London dealing 
the yen eased slightly bat later, 
in sporadic trading in New York, 


bulk steel output 

BY CHRISTIAN TYLER, LABOUR EDITOR 

Britain might cease to be a bulk steelmaker unless there was a very 
big improvement in the British Steel Corporation’s performance, Sir Charles 
Viliiers, the chairman, warned yesterday. 



renewed its climb to a new high 
of V20L27 against the dollar. 

©' WALL STREET dosed up 
5.03 at 817.31. . N 

• ILS. had its smallest trade 
deRcit since September,. Hay 
shortfall was $2,2bn against the 
5647.6m deficit in May last year- 
Back Page ' 

• WEST GERMANY'S trade sur- 
plus dropped sharply in May. 
Accumulated surplus fox the first 
five months is lower than a year 
ago. French retail price Index 
rose sharply again in May. 

Back and Page 3 

• BRITISH insurance companies 
recorded a £20m loss on their 
motor account last year, the 
British Insurance ■' Association 
says. 

Back Page . 

UK tops lm 
barrels a day 

• CRUDE OIL production from 
the UK sector of the North Sea 
baa topped lm barrels a day for 
the first time. 

Back Page 

• GOVERNMENT has decided 
to extend for a further 13 
months the 66$ per cent reduced 
rate of development land tax 
which was to have applied onlyi 
until the end of the present 
financial year. 


Hr told delegates to the annual 
conference in Scarborough of the 
biggest union in the industry, the 
Iron and Steel Trades Confedera- 
tion. that Governments of neither 
party would uo cm pouring in 
money indefinitely. The corpora, 
lion had to reach viability by 
198U or there would be pressure 
on politicians to divert public 
funds elsewhere — into schools, 
hospitals or defence. 

But Sir Charles’ appeal and 
warning in the workers to 
co-operate or die, the strongest 
statement be has made since 
taking the job. almost 
immediately met rebuff from the 
140 delegates after an explosion 
of feeling about the closure of 
older steelworks. 

With Sir Charles still in the 
hall and Mr. Eric Varley. 
Industry Secretary, on the plat- 
form. they voted with only one 
against for a militant resolution 
from the Bilston plant in 
Staffordshire, which is the latest 
to face the axe. 

The emergency resolution said 
that the closure of plants not on 
the list drawn up by former 
Industry Minister Lord Bcswick, 
should not be allowed, and tbat 
unions everywhere should not 
handle materials or orders 
switched from Bilstnn or other 
“ non-Beswick ” plants. 

According to Bilston stewards 
the TUC is being asked to agree 
to closure of steefanaking on 
October 30 and of rolling mills by 
March 1979, with loss Of 2.400 
jobs. 


.Although tiie conlerence is ad- 
visory only. Mr. Bill Sirs, the 
general secretary, made it plain 
that he wanted the conlerence 
to decide how further closures 
should he resisted. 

“ I don't want to engage in a 
wholesale sLrike. but if you pass 
this you are giving us leave lo 
do so. But we do not want to 
jeopardise ihe chances of a 
Labour Government." lie said. 

He and other speakers, includ- 
ing Mr. Jobn Donovan from East 
Moors, warned that whatever 
the union said, workers might he 
tempted out by high severance 
payments, as they had been 
already at Clyde Iron. Hartle- 
pool, East Moors and Ebbw Vale. 

Even at Shelton, where steel- 
making shut down on Friday, 
and despile an eight-year cam- 
paign by stewards, many workers 
had asked to go. 

All these plants, however, 
were given temporary reprieve 
by Beswick. but were known to 
have limited life. 

Sir Charles had told the dele- 
gates : “I am saying, as seriously 
as I can, that unless we improve 
performance all through BSC. as 
we have already done in some 
vita] areas, a ad becooie competi- 
tive in every way. the future of 
bulk steelmaking in this country 
is in danger, doubt and 
jeopardy." 

He did not include special 
steels in his warning. Pointing 
out that the corporation’s share 
of the home market had dropped 
to 55 per cent, he said : “ If we 


let this international competition 
in on our home front any further 
they wifi swamp us. so }ook out. 

“This is no empty warning, 
nor the Gipsy’s warning. This 
is tor real.'' 

He urged the unit m to acrep: 
the bulk of a blueprint for indus- 
trial democracy to be discussed 
at top level next month, and 
warned that the offer front the 
Government of six trade union 
seats on the main Bo^rd. which 
Air. Varley said could he 
achieved by the end of July, 
should not lead to politics nr sec- 
tionalism at the top. 

He urged the worker? in devote 
all their energies lo ihe product, 
both in terms or quality' and 
delivery. 

But his speech was over- 
shadowed by the delegates' 
anxiety. Mr. Sirs loJd Sir Charles 
as he gave him a statuette of the 
"Steefl Man of Sbellon" that the 
closure marked "a breakdown jn 
relationships." 

Mr. Varley. relying hard on 
the union's fear of a Conserva- 
tive Government, not only 
escaped approbrium but received 
a standing ovation for bis speech. 

He. too. asked for co-operation 
and promised consultation with 
the unions at every turn. 

Behind the angry words is the 
conviction of many shop 
stewards that BSC? strategy of 
concentration on big coastal sites 
is wrong, and tbat older works 
can be made into flexible 
modern mini-mill- to emulate 
those in the private sector. 


New U.S.j 
bid for j 
Lloyd’s | 
broker ! 


| BY JOHN MOORE 

i I 

j FRANK B. HALL, the third 
•largest quoted U.S. insurance , 
1 broker, has devised a £24m take-! 
1 over hid tor a Lloyd's broker, I 
j Leslie and Godwin, which will 
Lloyd's of London approval.) 
An announcement is expected on j 
Thursday. 

The latest move comes over 
l'vo months after Hall's original 
bid for Leslie — which promised 
j a cash offer at a significant 
S premium to the then suspension 
price of S*3p — was blocked by the 
Committee of Lloyd's. 

in ii controversial rulinc much, 
criticised m insurance markets 
both sides of the Atlantic, the 
committee said that - no outside 
insurance interest may normally 
bold more than 20 per cent of 
the equity seeking recognition 
at Lloyd's.” 


before 
I! summit 


BY GUY DE JONQUIERES. COMMON MARKET CORRESPONDENT 

LUXEMBOURG, June 27. 


Latest 


WM 


tax treaty with Britain 


Outside insurance interests 
were defined as "an insurance 
company, an u n dc rwnt i n g 
agency. or a non-Lloyd's, 
broker." 

A possible framework for the I 
latest bid lo be acceptable to the: 
Committee of Lloyd's js for Hall 
10 make a full bid for Leslie, 
then to put the Lloyd's broking 
interests into a subsidiary and 
sell tbat tiff to a party vetted by 
the committee. 

If that were to happen, 
Lloyd's might agree to Hall hold- 
ing a 25 per cent stake in the 
new subsidiary'- with possibly 
Rothschild Investment Trust 
which holds 10.5 per cent of 
Leslie’s equity and has had an 
association with the group for 
several years, holding some of 
the balance. But final details of 
the proposed Hall bid have yet 
to be worked out. 

Whatever happens. Lloyd’s is 
determined not to change its 
ruling, and would nor need to 
under the new arrangement I 
The only relaxation that might 
be possible is to allow Hall to 
own 5 per cent more than the, 
permitted levels m. the Lloyd's 
broking interests. At all costs 
Lloyd's is determined that these 
should remain U.K. controlled. 


EEC EFFORTS lo define a com- 
prehensive common strategy for 
economic recovery before next 
month's Bremen and Bonn sum- 
mits were clouded today by 
sudden emergence of disagree- 
ments between Britain and other 
governments over energy policy. 

The differences, about oil 
refinery policy, are essentially 
technical. But they were serious 
enough to prevent Foreign 
Minister? of the Nine from agree- 
ing hero on ihe text of a state- 
ment on energy lo be submitted 
to EEC Heads of Government 
when they meet in Bremen on 
July 6 and 7. 

Unless tbc dispute can be 
resolved by then the EEC will 
he bard put to preserve an out- 
ward appearance of unity on 
energy questions to the U.S. 
when President Carter meets 
leaders of five Western nations 
and Japan in Bonn in mid-July. 


Problems 


In other respects the Nine 
were able to agree on broad 
statements on the objectives of 
higher economic growth, stabilis- 
ing currencies, combating unem- 
ployment and protectionism 
restoring industrial competitive- 
ness. and improving relations 
with the develorrfng world. . 

Though ihe aim of 4.5 per cent 
average annual growth rate by 
mid-1979 has been formally re- 
tained. West Germany has made 
no secret of her doubts about the 
value of such objectives, and has 
stoutly resisted attempts to fix 
individual growth targets for 
each of the nine economies. 

Mr. Roy Jenkins, President of 
the European Commission, told 
th* Ministers that more progress 
had been made so far in discus- 
sing ways of stabilising curren- 
cies than in stimulating economic 
growth. 

The dispute over energy policy 


centres on the precise wording 
of a reference to the refining 
sector. 

Italy, and jo a lesser extent 
France, have insisted that the 
text explicitly link the level of 
EEC refinery capacity with the 
level of demand for oil products. 

This proposal has been strongly 
resisted by the UK. which clearly 
secs it as a tactic aimed at giv- 
ing the ComniuniLy power over 
its refinery sector. 

Britain is angered by Italian 
attempts to link demands for 
EEC aid to her troubled 
refineries to a Community pro- 
posal to provide almost £20Um 
in financing for EEC steam coal 
production in the next three 
years. 

Dr. David Owen, the Foreign 
Secretary, came close today to 
saving lhat the UK would block 
all further attempts to reach an 
EEC energy policy unless the 
steam-coal financing scheme was 
approved. 

The other elements of the 
energy policy paper have been 
generally agreed by the Nine. 

Dr Owen delivered a strong 
attack today on the way in which 
the EEC’s competition policy was 
applied by. the European Com- 
mission. and renewed criticism 
of the protectionist charac- 
teristics of the Common Agricul- 
tural Policy. 

He said that a fairer balance 
should be drawn between 
enforcement of competition laws 
and EEC efforts to combat un- 
employment 

Claiming that the EEC com- 
petition rules were based on out- 
dated economic realities, he said: 
“The idea that this is a laissez- 
faire Community is total non- 
sense. 

“ There is apprehension in the 
trade union movement that the 
Community is insensitive to un- 
employment. If the Community 
gives that image, it will be 
severely damaged," 


BY JUREK MARTIN, U.S. EDITOR 


if jfeace talks until the end of the present 

Sf. 'The Israeli Cabinet has author- financial year. 

5^. bed Mr. Ezer Vtfeizman to try to ^ GOVERNMENT may offer 
gr^esume peace talks with Egypt. ^ 0 f up to £10m. towards a 
S ; .An Israel i-Egyptian military gports car assembly plant in 
k alliance may be propo8eo, news- Northern ixelawi. 

/ paper reports said. Back page 

(Briefly ... ~ • BARCLAYS BANK is to open 

6 m-L, - • «, j - v., its branch at Brent Cross sbop- 

^y ad f- p Q ^S?jt!?hTedhn P^g centre- on Saturdays. NUBE 
• of. her WiinoI^clOD u*np-u.'. Barclays will suggest 

S3 ^’ r 

Sweden. Pam 8 

5fljfg prime Minister has opposed 

ssTRussUlu requests for an embassy. DECISION is near on whether 
& in" Suva because she fears v the Britain will build the world’s 
£ Russians ;' .might trj- to -depose .first commercial plant making oil 
» '.Sink. . ;‘i m by- diitUHnjr fold car tyres. • 

^-'Americans and Britons Will' not PSyj ge-jB:’.. 

v;' be l able to understand each 


THE U.S. Senate today ratified 
the Anglo-American Double Tax- 
ation Treaty shorn of its most 
controversial element — clause 
9.4 exempting British companies 
from the need to pay the state 
unitary taxes levied in Cali- 
fornia. OregDD and Alaska. 

I Today's vote was an over- 
whelming S2 in favour and five 
against Last Friday, the Senate 
had failed to give the treaty the 
, necessary two-thirds majority by 
five votes, largely because of 
objections that the right of 
States to tax in any way they 
think fit was being contravened. 

The unitary tax system uses a 
formula based on a company's 
world-wide income and not 
; merely on business generated 
.inside the state. 

The nest move is now squarely 
up to the British Government 
since . Parliament has already 
passed the treaty in its original 
form* as drafted at the end of 
1975.- The British options are 
either to renegotiate the treaty, 
which contains significant con- 
cessions to American investors 
from the obligations of advanced 
corporation tax or to submit to 


Parliament a protocol to the 
treaty along the lines of the U.S. 
Senate version. 

Senator Jacob Javils. the New 
York Republican, expressed the 
hope during this morning's per- 
functory debate that British MPs 
** will see it as we see it. I hope 
they will approve this treaty or 
negotiate another treaty, or a 
protocol to the treaty." 

Today's passage was assured 
once the U.S. Treasury had said 
last Friday that it would not 
object if the unitary tax exemp- 
tion clause were deleted. . 

British officials here said the 
Treasury had been "contrite” 
about this but had argued that 
"it was better to have half a 
loaf than nolhing at all." 

In bowing to political reality, 
the Treasury' was also clearly 
weighing the importance of the 
treaty as a general model for 
subsequent conventions. 

The Anglo-American pact is 
considered something of a 
pioneer in its field and resembles 
closely the OECD's model double 
taxation convention on income 
and capital published last year. 

On the Senate floor this morn- 
ing, Senator Alan Cranston, tbc 


WASHINGTON, June 27. 

assistant Democratic leader who 
represents California, held out 
the hope that the State itself 
might pass legislation mitigating 
the impact on foreign companies 
of unitary taxation. 

But two such Bills have died 
in the California Assembly in the 
last month and cannot be re- 
vived until next year. Moreover, 
it is strongly felt in California 
that there is next to no chance 
for any Bill which further cuts 
State revenues and benefits cor- 
porations. 

David Freud writes: In the 
UK there were immediate calls 
for the whole treaty to be 
renegotiated. 

The Confederation of British 
Indusiry said this was *' a matter 
on which a stand must be taken.” 
The Senate's action, it said, was 
an open invitation to other 
countries to adopt similar 
policies. 

The'CBI’s tax committee was 
seeking an immediate meeting 
with the Tnland Revenue in 
which it would press for a 
renegotiation of the treaty, 
regardless of the delays this 
would involve. 

Editorial comment. Page IS 


Statement 


Company law move 


Mr. Ian Findlay. Lloyd's 1 
chairman, said in his annual 
statement last week that “ it is 
necessary that the control of 
firm? operating in the Lloyd’s: 
market should rest firmly in the I 
hands of people who have long! 
experience with the workings of 
the Lloyd's market 
“If control passes to groups 
outside the community then the 
effectiveness of the market's 
self regulatory powers might be 
eroded.” 

£ in New York 


Inn-nth O.cC '.'.M 'l is | GAI-OlM .It. I 

.■nn-ntli- ■ l. 4 CU 5 S"li* . IJMJCt ,iis . 

1 ? m-.nili- ; 6 . j 05 . 101 i- | 5 . 1 -M.Pltilis j 


BY MICHAEL LAFFERTY 

EEC FOREIGN Ministers in 
Luxembourg last night approved 
a new directive on company law 
which will have a substantial 
impact on the way UK and Euro- 
pean companies present their 
annual accounts. 

The measure is known as the 
fourth directive and is intended 
to go some way towards harmo- 
nising company accounting prac- 
tice throughout the European 
Community. 

It lays down standard formats 
for company balance sheets and 
profit and loss accounts, allowing 
but not requiring member states 
to have less demanding rules for 
small and medium-sized com- 
panies. 

Small companies, for example. 


are exempted from having to 
have an audit or publish a profit 
and loss account, while medium- 
sixed companies need not dis- 
close their turnover. Both cate- 
gories are permitted to publish 
abbreviated balance sheets. 

The directive will have to go 

News Analysis. Page 30 
Lex, Back Page 

into British company law with- 
in two years. Although the 
directive is only meant to cover 
individual company accounts it 
is thought likely that it will be 
implemented in tbc U.K. as 
applicable to consolidated 
accounts. 


Three may beat dividend curb 


fob-.r tie : • able to understand each 
-- laK/ ; other's: English in. 200 years,, says 
HJ£ Mr. : Robert' BErchfield, chief 
-editor of ' the Oxford- English 
jffi' ^Dictionaries. 1 

Britain will not 1 use nuclear 
-m 6 K/wm pons against countries which 
- do' iiot have ' them, - Dr. David 
. ft ;Owen,'Forelgri Secretary, said. 

. A "father and son were charged 
IjS-iii London with conspiring to kid- 
s^hop Dr. Mahmoud Suleiman 
.■^f'Magbrihf. a farmer Libyan Prune 
' |p Minister'. _ V 
Ysj.Tw.0 Swedish tourists were killed 
. fs'Vjsbd .one injured' when a- young 
• {^Russian- went;' berserk with an axe 
Rfovqutside .Moscow’s. Intouxist hotel. 

2t ■ vH: ; -■ .- ' V • r : -:^ • 


GQ HP ARIES . 

• STANDARD Chartered Bank 
pre-tax: profit rose -to il26^hn 
(£1 09.9m), . including associated 
companies’ £LS-9m (£13.Bm) for 
.the year to. March 3L ~ 

Page 28 and Lex 

• BAT INDUSTRIES forecast 
lower earnings for 1977-78 re- 
flecting’ heavier tax and Interest- 
Page. 29 and. Xex 

• RENAULT ended last year 
.with FFr 12m (£l.45m) net profit, 
against FFr ettD.7m (£73. 5m) the 
previous year. 

Page33: . - 


FINANCIAL TIMES REPORTER 

THREE PUBLIC companies 
decided.-yesterday not to wait for 
Government ' guidance oo future 
dividend- policy by announcing 
their intention of paying share- 
holders substantially more. 

So far the Government has 
refused lo give a clear decision 
on whether dividend oentro! will 
be extended after the present 
legislation expires on July 31. 

Most companies have been 
assuming that they will be 
allowpd to increase their divi- 
dends by up to 10 per cent and 
say that if ocntrols are lifted, 
they will top up the payout. 

Now, Imperial Continental aGs 
Association, Tecalemir and Halm a 
have decided \o assume tbat con- 


trols will tie lifted. If they are 
not, resolutions will have lo be 
passed cutting the payment by 
the required amount. 

1C Gas said «t intended to pay 
50 per cent more, while Tecale- 
mil plans to increase its pay- 
ment by 70 per cent and Haima 
by 100 per cent. 

In each case, the annua/ meet- 
ings are being held early in 
August. 

The guessing game over the 
future of dividend controls has 
been going on for some months. 
The Government made a state- 
ment in Parliament last Thurs- 
day when the subject was raised 
by the Conservatives. 


Mr. Michael Foot, Leader of 
Lhe House, said : “ J don't beJicvc 
there will be any necessity for 
fresh legislation. The Govern- 
ment is still considering the 
matter. 

“ A number oF factors have to 
be carefuly cunsidered as part 
of the Government’s general 
approach to counter inflatinn. A 
statement will be made Jt the 
appropriate lime." 

Ttn.- main question is whether 
the lapsing of the controls Will 
be acceptable to unions when 
Ministers are exhorting them tu 
restrain wage demands over the 
coming year. 

Results. Page 2S 


CONTENTS OF TODAY’S ISSUE 


Umtf PRI&iE CHANGES YESTERDAY 


^'(Prices in. pence unless otherwise 
r:;V\ indicated). -1. 

• - . ' ■ 

RISES 

r.Rxcheq. 9}pc '82A"...JE91t! + /e - 
cheq, 12pc '13-17 . . . 

It?’' i <£45 pd.) 

ffi&iklbfciaht and WiIson»SD 

fes#Bway - -- « +* 5 ■; 

Ikil&pcks 382 + ; | 

I® + 6- ' 

rai^JbhteURadibvisian 123 + £ 

- ,.122 -t- 14 

S£aWth. ; (C. E.) 252. + .12 

P^c tfas . l._-... ; 35o +. 

^laJosepbrlfL.) 18T'+ ? - - 

. flnd Gpdwin;— 112 + . 5 


London • Pavilion 
MFI. Furniture ... 
Nat Carbonising 

Silentnigbt 

Smith. (D.> ... 

Turner and Newali 
Warwick. Eng. ...... 

'Willis Faber 
Statens (UJL) ... 

Guthrie 

PaeiSe Copper .... 


.. 630 4- 20 
-. 98 + 4 
.. 424 + 3} 
.. 65 + 7 
97 + 11 
.. 175 + 5 
31* + 4 
...257 + 10 
.. 3« + 26 
...290 + 5 
.. ~46 + 4 


... 2-3 

Technical page 

14 

Ini I. Companies 31-33-34 

.... 4 


15 


31 

.... 5 

Arts page 

17 

Money and Exchanges 

35 



IS 


3G 

8-9-10 

.... 11 

UK Companies 

... 28-30 

Farming, raw materials ... 


.... 12 

Mining 

30 

V.K. stock market 

38 


FALLS 

BATs Dfd. ... 270.-4 

Bowaler . “ f 

Chubb .......y.'. 137 - 4 

Hunting. Gibson 133 — 12 

Lorn and Prov. Poster V7 U 

OK -Bazaars 415-25 

WaddiDgton (J.) — 200 - 6 

Angle; Uld: Devs. ... 203 —33 

DO Beets ^Dfd 89a - 12 

Nor them Mining 86 — 11 


The Rhodesia massacre: 
Gloom in Salisbury ...... 18 

Changing patterns in 
employment for women 27 
Cable and -Wireless in post 
Imperial age 15 


FEATURES 

EEC case pinpoints clash on 

principles 32 

Spain moves against 

extreme Right 2 

Foreign hanks face more 
controls in U.S -t 


Niger's uranium reserves: 
Key lo improved eeouomv 5 

FT SURVEY 

Brazilian hanking and in- 
surance 19-26 



- Amro/atmeols 

Blrfs. Sk. Ratos ... 

Crossword 

Entertainment Guide 
European Outs. 
FT-Actoartas Indices 

Gardening 

Home Contracts 


filers . .. ... -■ TV ■V'd Radio M 

ex 4i Hull Trusts 

ombard It Weather a? 

!Z^. MatlCn . “ Base Lending Rates 36 

hSnHform.Uto.::: "*««»« STATEMENT 

odav's Even's ... 37 5GB Groop 34 

For latest Share Hitler phone 01-2-16 Sf>2 6 


ANNUAL STATEMENTS 
Bardon Hill Croup a 

Chmbr. or Mines SA 10 

FRAE Bank InU. .. 2 

r.si I ml. ... . zs 

Properly Hd<j. A fnv. SO 

Standard Chartd. Bk. 23 


khard Ellis 






2 


Gil 


Fall 


Accoui 

Op 

■First De- 
Dealings It* 
Jun.12 Ju 
J tin. 26 J« 
July IQ Ju 



* ■* New tim 
from 9 JO a-m 




Worried 
certainties, 
hang lire s 
Account y£ 
was a toi 
both Britis 

With fe 
scheduled 
were reflei 
trend in si 
not only i 
home. Ir 
pressures 
registered, 
led to tl 
showing I 
early sess 


Views t 
was neces 
today’s cj 
tan Exche 
were not 
pressure 
considers 
Tacked si 
afternoon 
shnrts aH 
eventual! 
close a i 
the daj 
followed 
their los 
Equity 
with the 
accordan 
Sellinc ' 
— barcrali 
the low 
Account 
genuine 
drawn b 
The FT 
index w 
calculati 
easier < 
Anril 1" 
ratio i 
widenec 
Indue 
back in 
tinns lo 
while i 
as Sou 
19S7, a 
' 1987 ft 
} dowr 
First-ti 
ful ir 
stocks, 
capital 
Allied 
at 9 Op 
cent s 
11 pei 
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of act 
ment 
the p 
finally 
per c 
sion f 


* ; 



- , r, 




Spain begins to move against the extreni| 


ay ROBERT GRAHAM IN MADRID 




j THE EXTREME "Right appears to organising gatherings where the on fascist meetings which cause in a ceremony laying flowers cessively cautious J? 

l have a near monopoly of daub' fascist salute is given and calls disturbances. at Franco’s tomb — an act the Government to 

I i n.-s and graffiti in central are made for a relurn to author!- There is also evidence that the deliberately timed to coincide who were-^ associated 


BY DAVID WHITE 


PARIS, June 27. 
PRESIDENT VALERY GIS- 
CARD d’ESTAJNG tomorrow 
becomes (he first major 
IVcslera leader to visit Spain 
since it* return to democratic 
government. 

During a three-day visit, the 
French President will bare 
separate talks with King Joan 
Carlos and Sr. Adolfo Suarez, 
(he Prime Minister. Since the 
death of General Franco, the 
French Government has piaeeti 
Its heis firmly on the King's 
ability to steer Spain through 
its political difficulties, and 
clearly wishes to capitalise on 
its special relationship. 

On the other hand, reserva- 
tions have crept into France’s 
attitude to Spain as a future 


in.-s aact graffiti in central are made for a return to author!- There is also evidence that the deliberately timed 1 
, Madrid. The fusees, the tradi- larian rule. Bands of fascists lenient treatment by the courts with the celebration 
ti'.'Jial fascist symbol, is spra veil have cot away with hombing of fascists for offences against Forces Day. in Madr . 

on many a wall alongside lert wing bookshops, and lessor the Left is beginning to end. Interpretations differ widely of soli dateti. in ^ Spam- 

patriotic slogans or sometimes incidents, such as molesting A Fuerza Nueva sympathiser, in the significaoce of all this. 0 ne beengradually ; redaced- 

i um bus tuous rhymes denouncing persons carrying left wing Alicante who last year threw a view is that having suffered a larly as it has'ioecMDre.': 

ine Left. publications in the streets, have brick killing a communist putting resounding rejectioi “ 

Ir the more fashionable parts gone unnoticed. up posters ro celebrate Andalu- elections in June, 

or Madrid., there is a certain Within the last month, how- eian Day was given 12 years in extreme Right is r 
type of youth who deliberately ever a number of pointers have 

sets out to ensure that he is suggested that things are “ “ " 

identified with the extreme changing d little. A photographer t- ™ cf art in a t<V tnlrp ofl 

RiL-ht. especially the main group tor the liberal daily, E] Pais, 1 nC aUtuOrKiCS are SiarUIlg IO lolSe OB 

Fuen-a Nueva. and its more while photographing a demon- j.: J pl 0 veS in dealing With the Right— a 

militant arm, the Guerrilleros de stration organised by the ex- mu gtuvea ns w , S v Lj- 

Crislo Key (Guerrillas of Christ treme Right in Madrid, was apparently backed by the King. 

the King). They wear centre- beaten up by demonstrators in rr_ * — 

purled hair, 1930s stvle and si sht of a police patrol. The „ „ 

K ! ... . A 1 A nAthifin \ATV%rtn ti io nncAn rt lii c -a T>¥e 1 nnl I Plfifl.Dftn) mnnrT NllPVa 


/any:- rjc 


■ V-By- Chari cs Batcheic 


The authorities are starting to take off their 
kid gloves in dealing with the Right— a move 
apparently backed by the King. 


- r- • . mmm ■_ w . "V; , , i. ■ . w a. -» ■» — - '111 UM. || uv 4 

support for onpositiqtt.to wtn^«ttreme ’did:. abfrote 'insi 

eratic ■ change has: begun - toVfffofafly newspap# ^Md^normaHiy if * change in .i 


iinside 
in .the 


-Fortified by Site ^realisa^di^ treat so fa^ W^'^publiai’ afrits ment/and ones’ ftam 


prominently displayed aolden Patrol did nothing. When the prison plus a Pts 1.5m (£100,000) round Fuer 
crucifixes. * photographer went to the nearest fine. Earlier this muntb a court ning to flex 


photographer went to the nearest fine. 




before th 
to/ reduce 
it none: mi 


ihJl believes that democracy's showed no interest in following Pinar and Sr. Sanchez. Covisa, the provoke the Government into uwdg; ””*** b ave; pasfceff f . since:-- this knowledge - of the : ctn fnl 

the ruin of Spain and of Church up lhe matlcr - Suc . h incidents leader of the Guerrilleros de some action which might bnng ; t L£incldent hpd" The wiuclf iook§Eeet 0 1 

a rmv. and State the values which were not uncommon in the past, cristo Key, must give evidence Fuerza Nueva more potential attackers have yet' tQ- be,' picked 707 c Nnnp 

The n °ve.i.v was that after pro- in a dvU aefion brought by supporters While it is true that na&ooal IJg £ ge 

. r . ne ' tn^ra (mm thu n&npr. mf-mhers raUhnac />nmmiimsy Prancn iAft hehmd Tin urooer political -pasties - iccludliig^.Qia .■ pougicians WHO 


mnt'h Government has placed a re a frustrated bigoted minority lests , Irom ^ P a P er ’ T en,bers 
Its heis firmly on the Kings reC ruited among aaeine stal- of the P ohce P aIral were 
ability to steer Spain through ^rls o?lhSco ge. cliscipUned. . 

1 U! political difficulties, and arD .„ d forces and the securitv There are more significant 
clearly wishes to capitalise on ff>rCi;s . among arts of the ari ■_ pointers. Three weeks ago the 
its special relationship. locracv, and segments of urban Government announced a ban 

On the other hand, reserva- “ ufh ;’ anQ se o raents « urban ^ fflc wearjng of ^ rd . mmdry 

ttons have crept into France’s - UrKil reCPnt , v Govern- uniforms and decreed that the 

attitude to Spain as a fuUire , mem treated them with kid > eHow and oran se national flag 
co-papier id the EEL. The 1 ,j nveS . almost too anxious not not bc uspd b - v P ollt,cal 

French fkiverument has always j to interfere with their activities Parties as their own symbol. 


hacked Spanish entry. But 
President Gisc&rd, in an inter- 
view with the Spanish news 
agency EFE, made clear that 
“the candidature of a great 
country like Spain poses 
serious and delicate problems." 

Negotiations, he said, would 
have to “avoid anything that 
could disturb sensitive econo- 
mic sectors in Frence and 
Spain." 

On bilateral issues, he said 
there were no problems on 
w'bich the two countries had 
fundamentally different points 
of view. The visit has been 
preceded by the successful 
conclusion of a military air- 
craft deal, in which Spain will 
partly co-produce 48 Mirage 
interceptor jets for its Air 
Force. 

A statement by tbe Eiysee 
Palace spokesman carefully 

hedged around the question of 
Spanish entry. ** For France, a 
member of the European Com- 
munity.” the spokesman, IWL 
Plerre Hunt, said, “the visit 
will provide an opportunity to 
mark democratic Spain’s essen- 
tial contribution to the build- 
ing of Europe."* j 

The kernel of the entry , 
problem, the prospect of 
Mediterranean farm produce 
flooding into France’s captive 
markets, will be discussed by 
M. Pierre Mehaignerie, the 
Agriculture Minister, who i« 
accompanying the President 
along with M. Louis de Guinn- 
gaud, the Foreign Minister, 
and Bl. Andre Giraud, the new 
Industry Minister. 


armed forces and the securitv There are more significant Previously an application that Nueva is uymg w nu vue sssvtba *7^ 

fnreos. among parts of the arts- Pointers. Three weeks ago the they should give evidence bad 

loeraev, and se«)nents of urban Government announced a ban been rejected. certainly over-estimate toe poll- r*£; j^vesi^nbT^ wiliBawpUt 

u,uth. ° 5 0t UrbaD on the wearing of para-military The authorities appear to be ticaj acumen of the^e^eme Jgf^552bS?tote 

Until recently the Govern- uniforms and decreed that the making some effort in prevent Right, and its real strength. JJJ* 

mem treated them with kid >ellow and orange national flag members of the armed forces The AUanza NaciOM^ loose J e ^^* t CT ^ “^ d ^ & ^eautiotte\aud : -nreu^^^Far- 
gloves, almost too anxious not m| S bt not bl? uspd b - v P 0111 !®* 1 and t h * P n bce from parucipat- alliance of the main Franqmst w jnteres? and nf^the instance wi 1 jineHLeO;.iir Rights ^ TjmtVStStaT 
to interfere with their activities Parties as their own symbol. m s in Fascist demonstrations, person ali ties and Fascist group- cSSntS wS OTQld reafe W ^anspwt ' Mmis^r 

to avoid disturbing the delicate This measure was aimed espe- At the end of May publicity was ings, got 0.47 per cent of the vote do^S^cceSaS^fewfi^hS of ' ^nationar^ar ap. ;f P|»V .U^W-BeSans; 

transition from dictatorship to pl>» - v ^ extreme Right who g.ven 10 the transfer of nine « the elections last June. Sr . eased Important polftoS: sFm bo . 1 - ^ ^^Elseix Sik Mr. 

democracy. Little effort was insist on using tbe national flag gendarmes frooi ban Sebastian Manuel Fraga. the leader of Moreover the Government S' _ it .was :the; flag ,"of ; all ! 


marie to prevent meetings which as though they are the true heirs 
sought to pay homage to Franco, of the Spanish colours, and who 


For instance Sr. Bias Pinar, the have a penchant for attending Ministry is 
veteran political figure and demonstrations in para-military investigating 


incident on with a Franquist brush. 


beg i nning towards ^rertfbvfng: 


veteran ponucai ngure ana aemonsirauous iu iijrd-iHiuLar.v an ihuuml uu wilu a muquu, um«i. wuih • .• . ■ ■ a . ucgiuuiu e . u)^aj»«-. tnuuvuis. ■ — . . - m- ■UT«tort*r 

leader of Fuerza Nueva, has uniforms. The authorities have May 27 when a senior General then the influence of the Fascists It is also interesting that Sr. th e remnants of FraucpSTsnx,: ‘mit‘ tl 


prevented from also begun to impose heavy fines in the Foreign Legion took part has depended on a perhaps exr Fraga,'- anxious 


improve still has a king -way ;to. go.: ; _ 


iircharge on Barcelona cargoes IMF negotiations on 

B 7 DAVID GARDNER BARCELONA, June 27. j # • 

n-SLOW by dockers in the heavy industry like Bilbao or side, none of the main trade 

of Barcelona has led to a Valencia. It is. however, a unions has won control over ' 


BARCELONA, June 27. 


BY DOMINICK j. COYLE 


ROME, June 27. 


A titi-SLOW by dockers in the heavy industry like Bilbao or side, none of the main trade I IIIIfT € ' 

port of Barcelona has led to a Valencia. It is. however, a unions has won control over V^vVlA • 

10 per cent surcharge being principal outlet for manu- Barcelona's 1.800 dockers, who 

imposed by two international facturcd and semi-finished goods, conduct their affairs by BY DOMINICK j. COYLE ROME, June 27. - 

conference lines. and local industrialists are con- assembly. . ^ t 

Port authority officials sav cerned that contracts may be There have been stoppages at A TEAM from the International number of special factors, inchuL 
that since the go-slow began on lost If the dispute continues. several Spanish pons this year. Monetary Fund is due here to- mg a marked reduction loathe 
May 4 . dockers' productivity has The dockers are ignoring pro- notably in the Canary Islands. ? orr Y 9*,. to wdnr ptOfftess under crude trade deficit last year, 
fallen by almost 60 per cent. The ductivlty levels arrived at by The Barcelona dispute is proving **} e . Italian Goveriunenrs letter mainly as a result of a conttac- 
valume of cargo passing through Government arbitration. They the most intractible. and poten- ^utent of April last year and tion in imports _ resulting from 
Barcelona during the first five are paid on a piece-work basis, tially the most damaging when t0 °P® n formal nepotiations for industrial recession. The deficit 
months of- this year is down and are incensed at what they local industrialists are seeking to f stand-by facility of at in January-April this y e „y. was 
15 per cent on the comparable regard as insufficient provision compensate for depressed le ? : s . t T 1 *?;- « ■ or r roi iS 1 1:Uy OBe*firtn v of 


More .tourists; 
in Switzerland 
last winter 


By John Wicks 'pi •- 

-- ZUKICH, Jane 27. 


• -vafi- 'Elsdh took .out/ tf 
■ Nrtth'lhe^main aim of f 

tasr; benefit, the commi 
li wiM .now continue : 

• gatioos '.-among membt 
- ^Upper-House of Par lii 

: Tfee'uL'detisioh ;to -J 

• was- tokeii -In Febru 
; Senior tax inspectors c 

a letter to Parliamen 
MPs and' members 
. •previous government } 
impropefly/ - aiyioug 


L388bn or roughly one-fifth of 


period of 1977. for payment during hold-ups for demand at home bv increasing Si ®- ^ a .^ a lb® figure for the corresponding 

The U.S.-based Meigulf and whicb they are not responsible, exports. !£' B j ^ 0Ur moQt ^ ls °* ‘.- T 

Iberian conference lines have In addition, they insist on mini- 'Adflitlanallv them hns heen 

introduced the 10 per cent sur- mum manning levels, and an end p rtr # nn<s l trail** eioftnit a usefnl imn’rovPTnpnt in the 

charge and the West Coast con- to the practice of crews doing rOItCgal trade deficit both the IMF and the European a useful m -tbo 

ference is reported to be con- the work of dockers. Portugal showed 0 trade deficit Economic Community, the com- terns of trade togoOwr with a 

tem plating similar action. The The situation was soured when <* «gn »" the first four months Jmed amount being, it is under- in fic f^? ,gs SiiSv 

measures are expected to acceler- a docker was killed by a falling of J 9< ®> an increase of 50.* per some S2ibn, .. tourism and emigrant Temiu 

ate the tendency to reroute traffic bale two weeks ago. and a solu- e „ r tanS^ Non^thelesl^rhe 


avofd Bare! Iona's in *prohfbi ti ve reVatiJSs ‘“ l *’**W yesterday.' AP-Dj7e?Srts the m^k^d" Vmprovement in*“the to Italian mtport competitiveness 

S prohibitive structure of ifidu stria! telatjons ff0 , n Ljsbon . Remittances by balance of payments account last of the 1976 devaluation &ows 


made difficult by the 


year, the National Statistics Insti 


stood, some S2Jbn. ’ invisibles account . mainly 

Tbe country is in no immediate tourism and emigrant remit- 
need of international loans after tances. Nonetheless, the_ .'boost 


, n., 1C P ous ;. emierant workers abroad in'- year, a "trend which has con- signs of having worked itsVay 

Barcelona is not, Spams main responsibility for the ports ^ is creased to $4S2in fnun S385m in tinued in the first months of this through , the system, r.while 


Ultimate emigrant 


payments 


port in terms of volume, since divided up between the Mini- {"he -ooie period! rRvceipts from year*^ Itoly* hMmet^n^hedSe Italian wage levels a rT co^isu- Howm'te ; -the profttaWirtyT W 

smaller n p a ramSr i neJb v e ^nr UST** ?£? 1 °^' to its repayment commitments on ingto rise in real terms^kn 


system,. 


, - IN SPlTEv uf -the high Swiss" illegally; fnZ taking out 

f ra nc exchange rate,: toorisL. ance. policies. ‘ The tax i 
loathe traffic increased in -Switzerland based their claim oh a 
L W last winter.. Hotel Bednlghts, a Dutch, newspaper. 

which had recorded a. 2 per: Jtr. Wm Aan^jes. Ieai 
? ' cent upturn in tile previous . Ohristiah Democrats 

' dea ^* win ter, rose by 9 per cent In Lowers. House, said L- 
-** 1 ® 1977/78 winter -season to - nd^sioo report showed * 
I?..” some 13.5m. There was^T per " accusations bad been 
landing cent growth in holel occnpatibn .The Christian Democrat 
by foreign visitors, wfth-above- the accusaton as sn at 
s been average tun-eases . of ifl per blacken the party’s naor 
in the cent 00 part of '. West ^ provincial electic 
with a German tourists and , 12 per March, 
op. the jenl for visitors\Trpm. :the; Virdnand suspended i- 
mainly 'jjf ‘ fares for charter flights, 

remit- The “ /Showing- Is:- . Amsterdam / and the U 

boost attributed t largely * to- . the: September 14, when the 
iveness generally favourable winter- reviewed, the Dutch T 
shows sports conditions during tbe Ministry told Reuter in 
tsiWay season antf to. Qie large degree dim. 
wbUe of .stability in . hotel prices. • A Ministry spokesman 


• Holland suspended c 
fares for charter flights. 


dam..-: *. 

•A. Ministry spokesman 


smaller Paragona nearby, nor and the navy. On the labour from JE23m, 



earlier EEC and West German estimated 7 per cent last year. ' . erament report to be * nnsatis- 

"Bundesbank fundings, and the The rhinorfty ChriidSaa Detbo- fad®Tf." TOfe i 

country’s gold and foreign cur- C rat Government of Sig. Giulio view of tbe necessity to stop 


r&tors ; ind vafferaft. 
ipapies, aganst/ the i- 


councrys goio ana xoreign cur- crat Government of 5ig- Giulio * ,cwr »* necessuy 10 srop i\aiasreraaro 
rency reserves at the end of May Andreotti, which depends for its Swiss franc Prices '.from rhdhg./t152S/fflontK./ 
were in excess of $21bn. survival on the parliamentaiy : T ; ' =.• . . : 

The improvement in the pay- backing of the Communists and ■ 1 ' ■ . 1 . . 

meats account results from a other opposition parties, is com- \ . : : 

^ “titled to getting the economy 

growing by the last quarter of ■ ■. "• ' 

frabbank sft/s t?iSSBftJS /".' THE AL-HARAMi 

INTERNATIONAL J widening of tixe trade deficit ah' || - .r;-:"- • 

Inna resulting satins on the e«baMe * ■ - - ‘ - •-*> "'d- -v- 


tipn ^o new- Idw -fares t 
AroSterdaro and Boston—— 


THEAL-HRRAMAIN 


w 9?. June rate sometime next -year. It is 

V*3 ANIv with this, possibility fan mind that I 
INTERNATIONAL Ordinary ^e authorities are seeking to 
General Meetings were held to nego tiate new stand-by facilities, 
approve the accounts for the 


-■/• -I-;* 




financial 


The IMF team will be looking 


accounts show a net profit after care ^ u } y at .. s H cl1 - a f 

tax of FF 10,385,674 for FRAB- m ? re immediate concern to the 
BANK as compared with mission, headed_ by Mr. Alan 
FF 214,529 in 1976. The dividend Whittome, are indications that 
was set at FF 900 per share, to the enlarged public sector deficit 
which a tax-credit of FF 450 is in the current year will he far 
to be added. above the level set in April. 1977. 

On the occasion of these at the time of a further Italian 
meetings, and the subsequent drawing from the fund of 5530m, 
respective Board of Director ^ , et1er of intent at ttal 
Meetings, Mr. xves Bernard Hp te contained -an undertaking 

ciSliiJ® 1 ^fePAj,?? eot i A Si s i r °l t0 limit the enlarged deficit this 
®f ad ,° f year to L14fi00bn (£9bnl but 
Middle-East Department In this ^ ii kely 1978 outt urn has been 

rI!i™r a *iir*KmS' tB< *«f Cll i?25S progressively increased, first to 
BANK INTERN ATTQN A L^smfl L19 '°°° bD 80(1 m05t recently to 






. m k~ /••-• 


I 

I 


to announce they are non 


available on telex at 


Jeddah and Riyadh, Saudi Arabic 


SSSSi “ii^l^enury MKT sooS-iK 


Madelin. entrusted with new “ ^ 

duties within the Socicte ?® understood to 

RMni# Rrmin. be _. .running in excess of 


Generate Group. 

Mr. Heinz Beldi. Vice-Presi- 
dent of Swiss Bank Corporation, 


L30,000bn (about £20bn). . 

The preliminary indications 


Telex No. Jeddah > 401404 2IRWAH i 




was seconded hy this Institution tor 1979 are a great deal worse, 
as General Manager of FRAB- the latest private Treasury esti- 
BANK INTERNATIONAL and mates being as high as L43.5bn 
Frab-Halding. in place of on the basis of what officials 
resigning Dr. Abdul Wahab describe as the most pessimistic 


Telex No. Riyadh! 201551 ZIRWAH i. 


kf&i£k 




**• * i~ 


* 4 << ■ •* ; 
-V: 

p mr- 

^ : ; <'*■ : 




IVhen you want to do business, 
we don t keep bankers hours 


Khayata. 

Mr. Roger Sabot, Manager of 
Society Generate, was appointed 
Director by Frab-Holding Board 
of Directors. 

Lastly, Air. Abdul ariz Hamad 
al Sagar was reappointed 
Chairman of Frab-Holding and 
Vice-Chairman of FRAB-BANK 
and Mr. Walter Frey General 
Manager or Swiss Bank Corpora- 
tion. was reappointed Vice- 
Chairman of Frab-Holding and 
FRAB-BANK. 


assumption. 




&W4'/:X 

i as&m 

•«slSai 

. 4<h ‘AlVi 1 }*' 


Our cars don’t close when the doors shut. 


\lter all. our ol I ittn-s r.nx- a bruit voi rr business 
almost ns much asymi »l«.».Tlu-\- curfcnoujih to leiU’ii 

il lh« irmislily. They t aivenniigli ti> |»-n m vour 

hitMiUfliS ia»”twgu- iiMiatlui kuciii- \W (o Uilk 
iKHlkoC. 


So natural ly they iiK> tai'c- eniu iu! i to work 
lato tvlien youliuv ujin >1 •!■ in-, to wot k out. 


Wc take the time to tailor cadi solution 


BocaitN? uctiy to iiuilcisiaml vour husinc-ss 
bettor, wc cun . offcryiiu belK-r liuancial solutions, A 
N^luiion that is cnsionwinHli.* jfi Jit vour specific pn>> 
blcm. Rather tlian tJie ‘Uindm’d, oif-ih e-rack boliiUon 
tliat any bank cun jnw. 


lhiT»u"h suljslcliuries.represcnioi ive offices, affiiial- 
Ltl and associated banks. correspomlei us an<hliroug;li 
im-mbcrships in banking comnmniiU'.s )ikt SJ:'Ji.uicl 

. VsMXiuied Bunks or Kim »jx; ( ,\B KCOR 1. 

J his jnleniulionyl iifluorl; t ,m r*liV-r you ^mu- 
distananeliil foryoui-inuTn;tii«ui;iI bii'im.^ pu 

} »k*mv. As well ;i> p;v >vi« le ym i %%-jrl 1 1 i K - * .1 ii i L - raivae « i£ 


WAVjtesus any ina|nr ntli-i naiiojiul bank. 

Jlui wjiat makes us rliiltrcnl fn mi these othei 
Txmks is our iiidivirlual .idem ion in caih client' 
imlhkliul needs; fnir n-Iuciauce lo siiv.k tmlu- same 
ol d answer: and ounvjUiugness loilou lilt le e.\Uxi for 
oui“cIicTit 


WASHINGTON, D.C 

A Renaissance of 
Qraciousness 


A luxury hotel in Ac groat 

European tradition. Elegant quiet, 

linnifflod — never a convention. 



Li ke.occasionallv missing die last b-ain liomc 



Oui- iiitemaiional neltvoik is always open 
to VOU too. 


©Banque Bruxelles Lambert 

banking, a matter of people 


lleurc the ABECCR bank in Belgium. Maniixhan24. 1050 Brussel. Tel. 02 515.81.81. Telex 26392 BELTS' 


\ \ v have more ihan ju-l retail brandies 

in Belgium. \t e also have a n< iridwir R- network 


! . £M'\ 

IM? 


THE MADISON 

VaHagtaH’s Cerrtei JUnsf 
1 5th & MStrwo, N^'a7djhingtoii ( DX^3000J' 

Telex 64245 
or see vour travel agent 

Mmlvii B. Cvrif c, Proprietor 



Confirmed Reservations • Choose any 
flight any day • Stay between 7 and 
60 days • Book only 21 days ahead 

Call your travel agent and ask about TWA’s now Sup er-Apex-feres to Amedcsti - - . 

Effective 25 th Idy. -l , \ -.."Lj -/Z 

TyABjBTtog more scWnled paMengsw eertwg thn' Aihmkf; rii»o nnynthnf mrfa 


6 7 


FiNtMci«L Tiw»«- (HiWwhed dally uent Sua- 
dart uiul huUdvia. li.C. auNinpiioD Uauu 
i.m» freiului (jir malli per annum, 

bixuua lU« mnLitw (Mitl at N«w iork. N.Y. 


No.l 

















N 

C,' 


Financial Times Wednesday June 23 IT&78 




3 


Retail price index climbs 
sharply again ip France 


"- ?i 

• '/Mv 
v.- 


' i'. 

. • t - ’ 




■V'V 




BY DAY ID CURRY 

THE FRENCH retail price index 
moved sharply upwards again m 
May following the Government's 
decision to increase a wide range 
of public sector tariff's to limit 
the need for state subsidies. 

The 1 per cent rise in May was. 
in fact, more modest than had 
been expected, and was not as 
severe as the 1.1 per cent 
recorded in April. The next Tew 
months will, however, continue 
to witness severe increases as 
the policy of setting industrial 
prices free from control and 
recent or imminent price rises 
for petrol, rents, eoal and the 
Paris regional transport system 
lake their loiL 


The Prime Minister, JL Ray- 
mond Barre. has ivarneitfhar ihe 
index over the next few' months 
will make painful . reading 
because or the "•corrections'* to 
industrial and public-' sector 
prices decided by the floveni- 
ment. He is expecting an 11 per 
cent rise this year in the index, 
but argues that the underlying 
trend will be nearer S per cent 
if the public sector tariff rises 
and increases due to adjustment 
of Common Market exchange 
rates for agricultural products 
are discounted. V 

In fact, on this definition the 
underlying rate for May was 0.6 
per cent. Over the past three 


j ij.-i 

*-*■ ‘ > ’wl 


EEC shipbuilding probe 

BY MARGARET VAN HATTEM BRUSSELS. June 27. 

THE EEC COMMISSION has fund was set up last year to 
launched a forma J investigation allow British shipyards tfc tender 
lo see whether State aid to ship- competitively with foreigS yards 
builders by the French. British and was largely responsible for 
and Dutch governments is com- Britain’s winning the ! major 
pxtible with tbc Community's Polish ship order for its own 
competition rules. yards. 

The aid in question is the first . % subsidising production, it 
to be introduced since the fourth “ f* ld ’ lfae f , u ° d *S ve, »HE 
directive on competition policy aa ^vantage °Fff 

was approved in March. It laid competitors, both-^i the 

the ground rules for aid to ship- and Jn *h*rd country such 

building. a! L£ apa £ 

_ !r ...... The French project under 

The Commission has given the investigation is a FFr 55m aid 

f ° r sb ‘ P -W®* 15 - a SectDr ' not 
month to supply information nrovideri for in the ' fourth 
which would demonstrate that 55525352 The Dutch oSt 
State aupport for shipyards is a n ssOm fuad t™“ 

i n „. Ua . e n ,*S ™ vide for loans to. and State par- 

does not art across Community ticipation in. shipbuilding and 
pians for a 50 percent reduction rep ^ r irma threatened with 
in EEC shipbuilding capacity <jo Sure 

and workforces. This means tiiat The Commission also "stressed 
State aid should be directed todav ^ the investigation is 
mainly towards restructuring basicaJJy a fad-finding exercise 
and providing permanent yobs, and so far. no coubter- 

rather than temporary supports measures are envisaged. The 
and subsidies. Commission is mainly concerned 

The British Government’s £90m with - getting governments to 
“special intervention fund” specify where and how they 
does not appear to meet these plan to scale down capacity in 
requirements. The initial £65m the industry as a whole. 

Proposal on European MPs’ pay 


JSV 




BY GUY DE JONQUIERES 

EEC OKE1GN Ministers today 
took a first step towards deter- 
mining the pay of directly- 
elected MPs in the future by 
agreeing to invite the current 
European parliament to submit 
a formal proposal on salary 
levels. 

The request will he made next 
week by Herr Hans-Dietrich 
Genscher. the West German 
oreign Minister -and incoming 
president of the EEC Council of 
Ministers., when he .meets Big'. 
Emilio Colombo, president of the 


LUXEMBOURG, June 27. 

present parliament, which^con- 
sists of MPs nominated .from 
national legislatures. 

The proposal will form the 
basis of discussions by - the 
Council of Ministers. Bur the 
Ministers maintain that they have 
the right to amend it arid. to 
take the final decision 
Dr. David Owen, the British 
oreigri Secretary, claimed after 
the meeting that all nine Minis- 
ters had agreed that the salaries 
questio n should be settled by the 
start of next year at the latest. 


PARIS, June 27. 

months the inflation rate has 
reached an annual rate of in- 
crease of 12.4 per cent. 

The immediate consequence of 
the latest rise will be an' Increase 
in the national minimum wage 
t«> count from July 1. Normally 
in July the minimum wage is 
adjusted to lake account not 
merely- of price rises but of the 
average rise In industrial earn- 
ings. while M. Barre has 
promised that the lowest paid 
will be granted an increase in 
purchasing power to keep them 
ahead of price increases. 

It is expected tbat the Govern- 
ment will be reluctant to permit 
too great an increase in the 
minimum wage, however, and a 
rise of around 2.2 per cent is 
expected to FFr. 10.68 an hour. 

This arithmetic will be 
watched with some apprehension 
by the members of the Govern- 
ment's parliamentary coalition 
who believe that the Govern- 
ment’s hard-headed pursuit of 
economic recovery is giving it a a 
« ncom passion ate image in the 
race of increasing unemployment 
and difficulty In several sectors 
of industry. 

This discontent has been 
simmering within the ranks of 
the Caullists for some time, and 
M. Jacques Chirac, tbe party's 
leader, has added fuel to ft by 
calling for a clear policy of 
reflation even if it means 
jeopardising the return to 
economic equilibrium. 

But now there are the first 
signs of disquiet from the UDF- 
centre grouping which looks to 
President Giscard d’Estaing for 
leadership. It is disappointed 
that there has' not been a more 
vigorous pursuit of social goals 
and reform. 

Both groups are clearly wor- 
ried about the present wave of 
industrial unrest in France, 
though this unrest is still 
unco-ordinated. 

The conflict at Renault drags 
on. the naval dockyards are well 
into their second week of strike, 
tbe Moulinex electrical appliance 
company is crippled by wide- 
spread strike action and bas had 
to call in police to clear its 
factories of strikers, and the fate 
of the Boussac textile empire 
remains uncertain. 

It is bard to see M. Barre 
being seriously threatened in 
tbe short term by this discontent 
so soon after the President’s 
unequivocal endorsement of his 
economic policy. However, if 
the Gaol lists take their opposi- 
tion to the point of opposing 
some, of tbe measures of reform 
proposed by the President him- 
self. the Government could find 
itself in increasing difficulty in 
Parliament. 


Journalists accused as Moscow releases businessman 


BY OUR OWN CORRESPONDENT 


SOVIET AUTHORITIES today 
released Mr. Francis Crawrord, 
a U.S. businessman, from 
custody in Lefortovo prison, 
where he had been bcld since 
June 12 accused of currency 
violations. 

Mr. Crawford’s release came 
as the U.S. freed two Soviet 
United Nations employees 
accused or spying. In return 
Tor Mr. Crawford’s release. 

Tbe three men are tech- 
nically in Ihe custody of their 
own countries diplomatic 
representatives. Mr. Crawrord, 

Parts Manager for lulcr- 
na llonal Harvester, was takeu 
by the KGB to his room at the 
Intourist Hotel, where he bas 
lived for two years. Mr. 
Crawford has been told lo be 
on call by Soviet authorities 


investigating the alleged 
currency violations. Tass, the 
Soviet netfs agency, has 
accused him Of “ systematical " 
speculation Is large amounts 
of foreign - currency. Three 
Soviets, unidentified, are said 
lo have been his accomplices. 

Meanwhile, tbe State tele- 
vision-radio monopoly has 
brought an. action for slander 
in a Moscow court against two 
American reporters. Mr. Craig 
Whitney of the New York 
Times and Mr. Harold Piper of 
the Baltimore Sun. The two 
men were summoned to appear 
tomorrow as defendants in an 
action brought by G os tele- 
radio. 

The two said tfaey had been 
informed by officials at the 
foreign press department of the 


Soviet Ministry of Foreign 
Affairs that the complaint has 
been lodged against them for 
at least one article each of 
them sent to their papers. Far- 
ther details of the complaint 
were withheld. 

air. Whitney and Mr. Piper 
late last month filed articles 
from Yerevan, the capital of 
Soviet Armenia, in which they 
quoted dissident sources In 
neighbouring Georgia as disput- 
ing a televised confession 
shown recently on Sonet tele- 
vision. The confession was 
given by Mr. Zviad Gamsak- 
hnrdla, a Georgian human 
rights activist, who was re- 
cently brought to trial on 
charges of anti-Soviet propa- 
ganda and confessed guilt. 
After the trial, the national 


television news programme 
“ Vremya n l“ Time broad- 
cast scenes of Sir. Gamsakhnrdla 
expressing regret for his 
actions. Tbe dissidents quoted 
In the two reporters’ articles 
said they doubted the authen- 
ticity of Mr. Gamsakhardia's 
remarks as portrayed on the 
programme. They said tbe 
scenes had been spliced to- 
gether, taking his words oat of 
context. 

In Washington, officials said 

that Mr. Cyrus Vance, the ILS. 
Secretary of State, will ask 
Mr. Anatoly Dobrynin, the 
Sorter ambassador, to explain 
the action of the Moscow 
authorities. Mr. Dobrynin's 
call at the State Department 
was arranged before today’s 

action. 


MOSCOW, June 27. 

• A young Russian ran amok 
with an axe outside central 
Moscow's In tourist Hotel today, 
killing two Swedish tourists 
and injuring another, hotel 
staff said. 

A Russian eyewitness said 
the man. aged 24. attacked the 
three elderly tourists, a woman 
and two men, as they were 
leaving the hotel . on the 
capital's crowded Gorky Street 
at midday. 

% A group of seven Soviet 
Pentecostal is Is rushed past 
police guards into the U.S. 
Embassy in Moscow today and 
said they wonld not leave the 
building until they were 
allowed lo emigrate, Reuter 
reports. 


Executions 
postponed 
in Cyprus 

By Our Own Correspondent 

NICOSIA. June 27. 
TWO ARAB terrorists sentenced 
to hong for the murder of a 
prominent Egyptian newspaper 
editor did not go to the sallows 
today as scheduled. It looks as 
if they will be staying in the 
island for some months to come, 
locked in a special cell of the 
Nicosia Central Prison. 

Samir Mohammed Kbadar (2S1 
and Zayed Hussein al AJi (26;, 
were found guilty on April 4 of 
tbe premeditated murder of 
Yousef el Sibai, a close friend 
of President Anwar Sadat, the 
Egyptian leader, and editor of 
the Cairo newspaper Al Abram. 
He was shot at close range in a 
corridor of the Nicosia Hilton 
Hotel on February IS. 

The date set provisionally for 
their execution was June 1, but 
this was later put off to June 27. 
while the island’s Supreme 
Court spent several days hear- 
ing their appeal. The court has 
now announced it will deliver 
its verdict on July 31. and has 
postponed their execution to 
August *22. 

The reason given for the delay 
in announcing the judgment was 
the “ complex and delicate ” 
legal points raised by tbe 
defence counsel, Mr. Lefkos 
Clerides. If the court finally 
confirms the death sentence, 
Mr. Clerides is certain to 
appeal for clemency to President 
Kyprianou. 

It is thought likely he will 
have to commute the sentence to 
life imprisonment. 

From the legal point of view, 
the death penalty in Cyprus is 
almost extinct in practice as il 
has not been carried out for 
more than ten years. 


W. Berlin election role criticised 


BY LESLIE COUTT 

THE Soviet Union's ambassador 
to East Germany. Mr. Pyotr 
Abrassimov, who was one of the 
negotiators of tbe 1971 Four- 
Power Berlin Agreement, has 
warned against West Berlin tak- 
ing part in next year’s elections 
for the European ParliameoL 

Moscow’s envoy in East Berlin 
said that West Berlin’s participa- 
tion in the elections, direct or 
indirect, could not be allowed “in 
tbe interests of stability in the 
area.” as it would be an “attempt 
lo revise the situation” in West 
Berlin. 

This, he noted, would be 

“incompatible’’ with the Four- 
Power Agreement. 

The three Western powers 


responsible for West Berlin — 
Britain, France and the United 
States — are permitting the city 
to delegate representatives to the 
European ParliameoL but not to 
elect them. This is the same pro- 
cedure used to send West Berlin's 
□on-voting representatives to 
West Germany’s Bundestag. 

Mr. Abrassimov, in an inter- 
view with West German tele- 
vision. also- said the Four-Power 
Agreement would be violated if 
West Berlin's Governing Mayor, 
Herr Dietrich Stobbe, takes over 
this autumn as President of the 
BundesraL the upper chamber in 
Bonn. This post revolves each 
year among the heads of the 10 
West German states and West 


BERLIN, June 27. 

Berlin. Its occupant deputises 
for the Federal President 

The Soviet ambassador said 
that the “ illegality ” of such a 
step must be evident, “irrespec- 
tive of the explanations accom- 
panying it." 

Mr. Abrassimov also struck 
out against the presence of the 
West German Chancellor, Herr 
Helmut Schmidt, in West Berlin 
during the visit here last month 
of Queen Elizabeth. 

Renter adds from Bonn: The 
West German Government today 
rejected Soviet charges that West 
Berlin’s participation in direct 
elections to the European Parlia- 
ment would violate the Four- 
Power Agreement 


Belgrade and Sofia in conflict 


BY PAUL LENDYAI 

TENSION between Yugoslavia 
and Bulgaria has sharply 
increased following mutual 
accusations over territorial 
claims. 

The Bulgarians are parti- 
cularly angry that a recent 
conciliatory offer by the 
Bulgarian President and Com- 
munist Party chief, Mr. Todor 
Zhivkov, has not only been 
ignored but even used for a 
further escalation of criticism 
from the Yugoslav side. Mr. 
Zhivkov offered to go immedi- 
ately to Belgrade to sign with 
Marshal Tito a joint declaration 
about the renunciation of 
territorial claims and the 
inviolability of frontiers. 

However, the final resolution 
of the Yugoslav Communist 
Party Congress last week once 
again accused the Bulgarians of 
territorial claims since the 
Bulgarians continue to ignore 


both the existence of a Mace- 
donian nation and of a Mace- 
donian minority in Bulgaria 
itself. Macedonia is one of the six 
constitutent republics of Yugo- 
slavia. 

On his return from Belgrade, 
Mr. Dimiter Stanishev, a secre- 
tary of the Bulgarian Communist 
Party's Central Committee and 
leader of the Bulgarian delega- 
tion at the Yugoslav party 
congress, hastened to reject 
what he called “absurd theses, 
unfounded accusations and 
attempts at pressure and inter- 
ference in Bulgaria’s internal 
affairs.” 

The Yugoslav party document 
specifically accused Bulgaria of 
violating both the UN Charter 
and the Helsinki Final Act on 
European Security and Co-opera- 
tion by not respecting the rights 
of the Macedonian minority in 
Bulgaria. However. Mr. Stanishev 


VIENNA, June 27. 

refuted these accusations and 
even asserted that “there has 
never been and there is not at 
prsent a Macedonian national 
minority in Bulgaria.” An 
authoritative statement Issued 
by BTA. the Bulgarian .News 
Agency, went even as far as to 
charge Yugoslavia with terri- 
torial claims on Bulgaria. 

These attacks, in turn, were 
sharply condemned this week by 
the official Yugoslav news 
agency. Tanjug, which reminded 
Mr. Stanishev that Bulgarian 
official statistics in the past 
issued precise figures about the 
number of Macedonians living In 
Bulgaria.- Thus, in 1956 the 
Bulgarian census revealed a 
Macedonian minority of 187,000. 
However, by 1965 tbeir number 
was given only as about S.000. In 
1975 the Bulgarian census com- 
pletely ignored tbe existence of 
any Macedonians. 


Austrian 
discount 
rate cut 

By Our Own Correspondent 

VIENNA. June 27 

THE AUSTRIAN central bank 
tomorrow will announce a long- 
awaited but controversial 1 per 
cent reduction of tbe discount 
rate from 5.5 per cent to 4.5 per 
cent, it was reliably learned here 
today. 

It is now taken for granted 
that, as of July 1, tbe so-called 
basic rate on savings deposits 
(not subject to notice) wall be 
reduced from 4.5 per cent to 4 
per cent. Interest rales on credits 
should drop on average by 1 per 
cent. The latest federal bond 
issue — a SchSOOm loan floated 
by tbe state electricity concern 
— carries only a 75 per cent 
coupon. 

The last change in the bank 
rate occurred in June, 1977. 
when it was raised from 4 per 
cent to 5.5 per cent. Dr. Hannes 
Androsch. the Austrian Finance 
Minister, repeatedly pressed pub- 
Liclv for a reduction of interest 
rates and has even reproached 
the credit institutes for being 
what he called “over-cautious.” 

But the reduction of interest 
rates is being received with 
mixed feelings by financial ob- 
servers. They point out that the 
budget deficit, which will be 
Sch 47bn this year, lies at the 
heart of the problem. 

The growth rate this year has 
been put at 1.5 per cent, against 
3.5 per cent last year by the 
Institute for Economic Research, 
but it may well be even lower. 
Latest forecasts are understood 
to put it at 0.7 per cent. 

A spokesman tor the Federal 
Chamber of Economy also said 
that changes were necessary in 
the general thrust of economic 
policy. 






f* **-. r 

U'! V- . 
DkJL Vv 




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ivxr*'- 


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ouHpay 


ton,we’ll makeyou 


Not knocking thellilton. 
At^^aiii^itferadoublexooi33,itofers 
alot of people exactly whattheywantfrom 




doesn’t only remember people’s 
_ names, he remembers the 
:c newspapers they take.) 72^, _ 

* c You go to your room 


andyou find little 
[S' touches like a 
needle and thread. 

Andatelephone in the bathroom (think 
about it; if s invaluable) . 

You goto Plums bar for a drink 
anditdoesn’tcomeinanordinaryglass, 

it comes in cut crystal. 

You go back to your room 
andyou find a choc- 
olate mint on your 
pillow. Canyou 
think of a nicer 
“/way to say 
goodnight? 




(One thafs decent anyway?) 

02 anight? Sometimes it 
even surprises us how we do it. 



j LADBR0KEBEUMJAH0TEL-2DCHESHAM PLACE LONDON SW1X8HQ. 


LADBR0KEHAVE17 H0TELSTHR0UGH0UTTHE COUNTRC 1NCLUD1NGTHEFAM0U5 DRAG0NARAS IN BRISTOL, IHDS, AND MIDDLESBROUGH. AH piices qudedareinduave of VST andsetvicfc 

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1 -rt i 








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Fall 


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Oi 

•First Dc 
Dealings ti 
Jun. 12 Ju 
Jim. 2ft Ju 
July 10 Ju 

* «* Mew tlm 
from 9J0 a.m 

Worried 
certainties, 
hang fire ; 
Account y« 
was a fu 
both Britif 

With fe 
scheduled 
were reflet 
trend in s 
not only i 
home. Ir 
pressures 
registered, 
led to tl 
showing 1 
early sess 
Views t 
was neces 
today's c! 
tan Exche 
were not 
pressure 
considers 
larked si 
aTtemoon 
shorts an 
eventual! 
close a i 
the day 
followed 
their los- 
Equity 
with the 
accordan 
Selling v 
— hargaii 
the Tow< 
Account 
genuine 
drawn h - 
The FT 
index w. 
calculati 
easier a 
Anri! Vi 
ratio ii 
widened 
Indue 
back in 
tions lo 
while r 
as Soui 
151S7, a 
' 1987 (b 
3 down 
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Allied 
at 90p, 
cent si 
11 per 
Not? 
of act 
ment 
the p 
finally 
per » 
sion f: 


'4 


A Mi: RICAN 







Canadian 

financial 

interest 

Bill 

By Yietor Hackle 

CANADIAN Members of Parlia- 
lueut could be barred From hold- 
ing senior positions in corpora- 
tions and keeping secret from the 
public the nature of their 
financial interests under a con- 
flict of interests Bill introduced 
in Parliament today. 

However. MPs including 
Senators could escape the pro- 



Central Stat 



ute to CallaghatfflS^.M^fe 

BY JOHN WYLES • 

■*.. •' s : ._ ; T 

I FiJLSu.ME TRIBUTES to Mr. Mr. Callaghan of the first Hubert ^Having already ■_ bcard^ ;fhgf- 

'Junes Callaghan the British Humphrey international award Hubert Humphrey .^ouId :Mt^r^r^|J^s^e^eSld.iw.y 51 ^&^e^'i 
v, i • f K rr Lt niaht which the Prime Minister had have wished anyone else 
. pr,nie ^nistei, f "‘ rc ljst F earned, according to its sponsors, the. first recipient of the award.^Vfi -^ 

the u.S.-UK ,u. M.fi.r.i r.^miHsA. nn haarfmr his name -Ml*. CaUaiifiihv;iilflBnitlh'Jti!4HPlsi&WWeih!rBfc ,- i 


BY OUR OWN CORRESPONDENT \\-.\\ Vl’tRK. 


confirm that the U.S.-UK ^ National Committee on bearing his name. Mr. CaU^^-d(fficulty-ih|AiglffA^drjc^.reia.- 

| ix-Iationsbip is no:* more easy, American Foreign' Policy, “Tor Was generaUy credited vrtttVhav-Jfibns but th£? 5 »i|htfa£|!^«lM^g 

.Tune “7. J relumed and iutimatf than at any bis long record as an inter- ing risen to the occas i on .iu-d 2^- -last night! 

THE US. Supreme Court hur ilu- oir <„..«• «•* .He termuKil ! .„«">« «"= KeDne ‘ l - v " “*>“* SPSt 

prohibited the commotion or , «h,.ui eoutpetteuUen, But: »*».«« era. . , ££££** ? better eoc^ ' S 


Si-story office building above 


the jusiiee uiiu i.-oiiipri-ed thej As then, the fulcrum of the 


Grand" Central Station in New .^'"s i rc ' l “ li ° n f h ‘P- “ which the word democrati i. society.” 

York, by way of a landmark „ "LX .ha? ‘the Snot j Flushed "with." 

decision which will influence burden of “anv restriction ini- : 0 , J“ ese da ^ s : JS “ e President's tribute, 

n,enn,tv Wt.ir.il.- . .1 .... neiSfinal harmnnf Mtu'A»n thi* 


order in the framework oF a work together.' 7 ; 

Mr. Callaghan assumed 

the Vice- 
which 


ornatui m — significance of the deci- rather than by the owner. 

posed new restrictions on their j** 0 " is * hat * l endorses the rights The dissenting minority arcm»d 

flnanicai affairs by placing theiri? { !°. cal authorities to designate that the i-onsiituliwi rcquiml 
holdings in trust. 

- ■ tmi'fui «.ui>i KV u 3 jimi g miners rnr nnanurK-- 10 nc uorne uv tnc- - -- — — ----- . ba a . - 7 — — - ~r tt — • -- • , . -v, -t 

any loss of freedom of develop Government on i H h : ,ir i,f a ;i : President turns mure frequently Astona Hotel where 500 people stratton were established by the ..land ev^ed.JittJe. 

ment. Uncertainty of the law chi-tens who would thcm-eticallv. an;l 1 ru>i ■> more completely than had paid 5250 a plate. The funds British embassy under Sir Petpr :. Mr- Am stair. VQP! 

and fear of costly legal chal- benefit fi-nm it. Prime Minister Callaghan. He is are earmarked for the Hubert. EL - 1 11 ' “■* - 

lenges are said to have inhibited ‘Grand Central was tlesiar.aied a source continuously of wise Humphrey .Institute- of Public 

many municipalities from try- a landmark in lP«i7 and i«c one of ;;nd principled advice." Affairs which is being established Carter moved-' - into the- -White' Prime ^ 

in" to preserve commercial 4 nu buildino and so a rex in' Vic.- - President Mondale was at his alma mater, - the House and were nnderlihetfv.by break 

properties. >m W Ynrk 'tho proM-rvaiion nri speaking at the presentation to University of Minnesota.. . yet another meeting betvy-e«i the- dying Meaiogy.- ot ; jti^ v T930Sv^-t- v ' - 

Penn Central Transportation which is l-galiy protected A ! : ; >•• .7 <a?.-v :f. 

Ainimni' uihir»W *>.»* _ . u _ dr. _ . j — • . — . 1 : dr 


Under the set of public dis- 
closure rules now proposed, the 
public not only couldJearn which 
corporations the MPs are 
involved with, but also how many 
shares they hold and how 
wealthy they are. 

The legislation was promised 
four years ago by Mr. Pierre 
Trudeau the Prime Minister 
during the 1974 election. Since 

them a number of incidents in 
wbicb prominent members of the 
Government have been allegedly 
involved in conflict of interest 
situations have stirred up protest 
from the combined opposition 
parties. 

Mr. Trudeau finaily bowed to 
the pressure and agreed to bring 
forward a conflict of interest Bill 
to meet the complaints. It was 
introduced by Mr. Alan 
JlacEachen, Deputy Prime 
Minister. 

“The rules will provide pretty 
clear guidelines ot Members and 
assurance to the public tbat con- 
flict of interest is dealt with," 
said Mr. MacEachen. 

The idea, he aded. as to permit 
parliamentarians to deal with 
conflict of interest situations by 
disclosing them to tbe public, 
since avoiding them “it not pos- 
sible all tbe time, or practical. 

A conflict of interest is being 
defined as a situation in which 
a parliamentarian has personal 
financial interests sufficient to 
influence or appear to influence 
bis public duties and responsi- 
bilities. It is also a situation, said 
Mr. MacEachen, where a parlia- 
mentarian uses or passes on lo 
someone else confidential infor- 
mation which could be used for 
financial gain. 

This action would be pro- 
hibited under the proposed law. 
which received first reading but 
will now die on the Order Uaper 
because tbe House of Commons 
is due to recess for the summer 
nn June 30. The Bill will have 
to be reintroduced at the next 
session in October. 



Foreign banks face fresh 


BY STEWART FL&ftNG IN NEW, YORK 


Company, which owns the 67- year after the rfpsianalion. 60 per i 
year-old Grand Central terminal, cenr or the air rights above the: 
had challenged a veto hy the Grand Central terminal were! 

New- York City administration of leased for 50 >ears to the British : 
a proposed skyscraper, on the company. United Grand Proper - 1 
grounds that it would represent ties, which .subsequently sold out' 
aud unconstitutional seizure uf its interest at a loss of IT Tm. j 

i FOREIGN BANKS operating in “mark up." on the proposed- 

the U.S. are once again facing to determine tbe final shape 
9 tbe prospect that Gongress will the legislation. If the process 
, pass new laws which will, foreign goes smoothly, the Senate passes “The 

; bankers believe, unfairly restrict the legislation and it does not size __ „ 

BY DAVID LASCEULE5 \EU‘ YORK T.m** _•? | their operations. differ, too much from wsat has 'tions; their ever increasing im 


L AV._ 



-A 


Commodity chief 4 te stay 


■y. y, . . y j -y ^ ^ . 

growth in the number -ana.- yfliwa^;-WPfiWg:<i?poaa irorm iqe gent* 

of foreign "banking opera- TStes* ’ 'yTfie' main, 'exertion* 

ever inereasins lm — 1 VBut-'blt..^>hbfTfiB-'mz^aIohe-:rfQrelgn-- bftfll&'Usitijk!a -. 



vl-,,- vni*r I, m. 1 <- , i' > -‘«uuii9- umu .uv uiut.il uum jiaa uuus, uieu’ e»c* iuunb>m« ^prefgar-, ■ bank.- - suhSH 

. Kiv. June -t Even three months ago, as the already come out of the House portance to the structure of ti 30 ' P^^y.-,-£Ptfegu‘haokipg s ector California - and. New vs 

vice- said today ifiai Mr. Gartner did : JmernaUonal Banking Act 1978 of representatives, foreign banks banking system and to the.func- w^^^MOt^'Xor'.^-prMS^ inc^^smgly spme ^ 


■.eq.twaiy 'that attract -deposits^. 


to resign. -Mr. Gartner • ' AuUnd ‘is way tortuously through could find themselves -subject to tioning of the money an d credit Tor; IegisU^Qii^-_What 7 iS -,eq.u . . . . . 
rercntlv jnDointcd 1 .. ' tltx* House- of Rcnresentatives, new forms of federal regulation markets," help to explain^ the importmir-i^ -file .if&gt ; 1 a ethnic;- groups strcfiir 
the Commission afier the re<i**- : s ,alT members oF congressmen and supervision. Fed's interest in the issues. ; - : w4u^t>bqa#ts a'.mulff- :ChTiaeseyirisir dr JAfj 

a nation of .Mr. John Kainbolil. hin • eoiriiTiliied to the new legislation If not. then foreign banking He pointed out that at the pffcltaG.'-.df ; bairitiagi regulatory,-. .' thy ' lAM c T ^f 

gave it little chance of becoming legislation could well be shelved of 1973 when the Fed. aeveloped systeins -at. -.the-. qatiCHial, ..levey^f^f ^., 7 ~ f jifl f- ' 
law. Congress, they said, had too ; ; "■ ‘ • AT>jLiWj^_ ta imitff 


MR. DAVID GARTNER, 
chairman of the Commodity n«'t intend 
Futures Trading Commission . v ', a ; s ,,n * v r,;i 
fCFTCi. who is embroiled in 

controversy over some shares ^7^” heen wide public.lv 
given lo his children by a lar^e for the $72,000 worlli of >1 ki 
grain concern, and why was he 
pressed to resign yesterday 
President Carter, is expected t 
explain his position at a meetin 
of Uie Senate Agriculture 
mittee tomorrow. 

However, a spokesman for the sen la lives have been 
CFTC, which is the government legislation to extend the .. 
agency responsible for policing the CFTC. whose mandate i 
the commodity futures business, to empire in September. 



U.S. scientific mission to China 

BY JUREK MARTIN WASHINGTON. June 27. 

THE U.S. is to send a delegation seen here as one .. 
of prominent scientists to China manifestations of ihe 
early 


early next month, the While ins its "China ’card"— a 'pohe-. ’ l " l,anl£ ,n several states. 

House announced today. which induced the critical wrath! Lust wrt-k. a Senate hanking 2d Mr. John Hiemann. the 


U.S. COMPANY NEWS 


Strong fourth quarter at Heinz; 
Alberta Gas Trunk Line raises 
stake in Husky Oil; Setback in 
gaming stocks— page 31 


The mission, 
beaded 
science 
const itu 
improve 
cal exchan, 
countries. 


which will he of 


Leonid 



. t :-V. • 

> < ■ V, v"iv- -7’: • 

Homehunte 

from the Greater 
computer. 


Last week's Senate hearinss at - vear - figure had ris^r to ntider state supemskm alone for" hrac chin tr Is nn^of the 1 
The deal gave new impetus to ] eas t indicated that there is a banks with, assets of ,%9Qbn. the most, part: Thus Mr. ! Miller •rtroaez^iaJ'i skies Jn the- 
the proposed act. The legislation iuVckeXgpolitJcJl intent ii TWb compares witt : a^fc -of- smarted* **It is incongrunus'Si^i^ 1 SSE£ & 
cleared the House ..r Represents- S ubject- P Mr. G. William ? roun £ S600bn (m Marclr l97^> that institutions- such as ,th^e thB CarTPr arfmmiBiTaf^i : 
UV*. - .- With an Ii\crwhelminc urn.. J .u- /--I i ~r +u» for . large banks that Ytmort-Aan nnenate on aheH'-a ' tw ^*" l ^r.4 y in suclrp. 

erfeas -the states want 
he retained. . 

more Tarfou^^vSjrTod^ ' 

. iIt . , - did Mr. John Hiemann. ih e ^ U.S. banking assets. : ' rules of tbe^ central. , 

Brezhnev, ihe Comptroller of the Currency, and Only nine states pemit foreign The lack on the-.^natioitaljevel . -across state lines they i- 

- "LJ* «sta^iriied. 0 f supervision and-i^iflat£6n : for centaate i almost eidrat - 

‘ what. are essentially 'thVfdreign ;™b°®F centres^sutiia^fi^a 

and California where^thi^hafe offices 

considerable market infinencei. banks-ts one_sourco-.uf doniern. not Wiefit lr oin the pr^ 
the -In New York and CaH&nna Not onlyisit fel^'tMt^tateforejgn- banks which S’ ‘ 

regulators, do.- •aofc'.'iia.ve^i^he- and: ■. ■ .stimulate; '. inteji 
expertise" 'eff e ctlvely ^to. mcniitor. , The . 

the- operation^ twj-'JnsunHii^Corpcffa^i^it 

exceptions* mc&.^R^the 2 New the states* . portion 'a3o®r 

. . ,. — Yorit SfateNjanlufig^autharitiefiL- as -proposed will a!iow4i^. 

foreign bankrng particular, local feanksTiave been irjs also ai^netUt&at 'the^tate^braiiclttng in co«tSnue.>; 



sale of certain ^nphUtu-aicd ivch-: bas approved it- The question Bankers 



f . ; '.j' # ■ / ..ti--.'."'.'. " ■ ' •’ 

V ' "• *<• : ’ • • 







f : . ■ . .-siw 


House hunting is always a 
headache, but the Greater 
London Council has a bigger job 
than most. Its Housing Scheme 
involves allocating council 
houses and flats as fairly as pos- 
sible amongst thousands ot 

Ie who need homes urgently. 


feople like teachers or transport" 
workers, essential to the capital, 
as well as others whose growing 
families, illness, change of work 
or adaptation problems oblige 
them to move. The council 
currently receives about 1500 
requests a week for urgent accom- 
modation.^ 

The tact that the council 
can cope, is largely due to an 
IBM computer system, installed 
in 1974. Housed at the GLC’s 
headquarters in Central London, 
the computer is connected by 
Post Office _lines to terminals in 
S district offices. Into the com- 
puter are fed details and personal 
needs of families seeking re- 
location. This data is stored by 
the computer, and updated 
regularly. Based on the GLC’s 
allocation polio/ and each 
family s situation, the computer 
helps establish a piioritv order. It 
then searches through its data on 
all the houses and flats available, 
matching families’ requirements 
to property characteristics in 
accordance with the priority 
scheme. Hie computer even 
helps communicate the solution 
to the applicant It automatically 


prints out a letter inviting the 
family to visit the suggested 
location. Following this, it keeps 
track of whether or not the 
suggestion was accepted. If it 
wasn’ t, family and flat go back to 
be matched again. 

Sometimes two families 
seeking help are ideal for each 
others houses. The computer is 
also progranimed to recognise 
this, ana print letters nuking die 
suggestion for a mutual exchange. 

The GLC savs the number 


ot allocations they can deal with 
has doubled thanks to this 
system. And since the computer 
provides a more scientific 
matching process, there is now a 
liigher acceptance rate of the 
allocations made. 

Plans are in hand to extend 
the system tor lettings enquiries 
to ten more districts. And just 
recently, the system won the 
British Computer Society's 
award for the UK system of the 
“Greatest benefit to Society”. 




Antwerp is one of the 
busiest ports in Europe. ‘When 
the Antwerp council acquired an 
IBM computer, the port became 
one of the system’s main areas 
of activity. 

The computer is used for 
tlie entire port administration. 
This indudes the control of 18 
warehouses containing equip- 
ment and spare parts needed to 
keep the port in operation. The 
computer produces invoices for 


is 90,000 Europeans. 


There are over 90,000 IBM 
employees in Europe. They work 
at 7 research and development 
laboratories, 7 sdentific centres 
(which are usually associated 


with local universities), 14 manu- 
facturing plants, 26 support 
centres, over 150 computer cen- 
tres and over 300 sales locations, 
throughout Europe. 


tBM employees benefit 
from our full employment prac- 
tice: _when skill or work load 
requirements change, employees 
are retrained so they can move 
to different sectors of our busi- 
ness. All IBM employees in 
Europe are salaried... and all share 
excellent benefits plans. This 
advertisement, “IBM Reports” is 
designed to help you better 
understand how the products 
and services these employees 
produce are used in the United i 
|dom and throughout Europe.! 



all port services, 
of tugs and cranes* arid the • ' 
rentir"^'— — ■ , -- 
houst 

comii uii 

simplify loading b ^d & dbdrij 

on pfylahd, thesanyp 
system ishelping fo keep thri ?f : -~ 
town or Antwerpin 1 smooth * 
tunning order The computer V 
calculates the salaries, taxes and ' 
pensions of ail coundl workers, .; 

about 12,500 people. It ednibufes 

thepnvate pensions ofovcf 
$000 others andhelpswha 
yrarly census of the total popu- 
lation of Antwerp. It m 3 , 

of -“^bitants and \ 
then changes of addressed : 
keeps track of the housing ■ : 
situation. It does the entire " '7 : 


-. «--;h • f. 

"• b- 



■ -.1 













1 


5 



• 'Mnandal Times Wednesday June 28 lg7$ 


OVERSEAS; NEWS 




I tS U 



l.S, 


fS. Yemen 

[ coup ‘not 
ft depute 
(over policy’ 

'.'ify Ifcsdn Hijazi June 27. 

MARXISTS in South 
I 'Ye^ien today_ set out to con* 
-*oHdate their victory in wake 
of .the overthrow and execu- 
tion yesterday of President 
Salem Kabul AH, the conflict 
'-wisbeing seen as an outright 
\~jnmer straggle rather than the 
v di s ag re ement over policy which 
’’I the.; victors were trying to 
>■ present it as. 

>, They said BIr- Bahai All, who 
: ws executed by a firing squad 
; last night along with two of his 
£ comrades, wanted to con- 
► ientrate power into his own 
; - hands by depending on support 
.■'/from loyal elements in the 
* firmed forces, and by lessening 
' influence of the leadership 
fr of 'file ruling -National Libera- 
tion Front (NLF). 

Mr. Ali Nasser Mohammed, 
the Prime Minister, was named 
as the new President. He is a 
close associate of Mr, Abdel 
Fattah Ismail, the secretary 
general of the NLF and its 
Majrxist-Leninist ideologue. 

A leftist newspaper here, A1 
Saflr, quoted diplomatic 
■ sources as saying that the NLF 

- leadership had discovered that 
Hr. Rubai All was in secret 

- contact with the Saudis through 
■’ a number of his aides, mien 
_■ he was confronted with the 

evidence, he dismissed the 
-.- exchange as insignificant, the 

■ newspaper said. 

» Diplomatic sources reported 
that there was sporadic shoot- 
ing in Aden today as the 
J ** Peoples Militias ” of Mr. 
/ Ismail carried ont mopping-up 
*’ operations against the 
. followers of the ousted 
_ president. 

t '.' . They added that the Presi- 
dential palace received direct 
.. . hit in attacks by fighter planes, 

. casualties were believed to be 
. Ugh, but no figures have been 
'• reported. 

The sources said that the 

• Defence Minister, LfeCoL All 
f An tar, hitherto considered 
.*< : loyal to the late President, had 
V- tipped the scales in favour of 

* -the NLF leadership when he 
«■> carried out its orders to crush 
.• the conp attempt by Rubai Ali 

and his supporters. 

Roger Matthews reports from 
.-.Cairo: Preparations are going 
ahead for a meeting of Arab 
. League Foreign Ministers in 
r Cairo next Saturday to discuss 

■ the latest events in North and 
. South Yemen. The meeting 

was called for yesterday by 
■ North Yemen, following the 
: assassination of its President in 
Sanana. 

However, it is not yet clear 
j.hbwrqany of the 22 members of 
% the Arab League will accept 
4 *. ihe_ v Invitation. ... . ......... 


Record Japanese surplus 
of $17.6bn projected 


BY ROBERT WOOD -l 

THE Japan Economic Research 
Centre expects a record Japanese 
current account surplus of 
S17.6bn this fiscal year, its 
economists said today, r. 4 - 

Thc projection came in an 18- 
month forecast which Mso pre- 
dicted Japan's domestic economic 
growth would slow down again 
later this year if the government 
follows currently expected 
policies. 

Export price increase? due to 
increases in the yeirt value 
would account for the whole 
increase in Japan’s surpihfl- The 
projection indicated the: volume 
of Japan’s exports would decline 
15 per cent and the volume of 
imports would rise 5 per cent. 

The projection does not 
include any of the emergency 
accelerated imports the ’Govern- 
ment now plans. But Mr.Masashi 
Kate, senior researcher:-' at the 
centre, said it was otherwise con- 
j servalivc. He noted the centre 
has underestimated ‘Japan’s 
( exports and current accounts 
1 surpluses several times before, 

| The projection indicated 
growth would be 55 per cent for 
the current fiscal year, ‘which 


ends on March 31, 1979. This is 
significantly below the Govern- 
ment’s targeted rate of 7 per 
cent. The sluggish growth was 
projected to continue throughout 
the term of the forecast, winch 
extends to September 1979. 

The Japanese economy’s large 
“ demand gap " — its lack of 
sufficient domestic demand for 
all the goods the economy can 
supply—would persist throughout 
the period, given current Govern- 
ment policies, according to the 
Centre. However, the projection 
is more optimistic than the 
Centre’s last report in December, 
which predicted a 4.6 per cent 
growth rate for the fiscal year. 

A decline in Japan’s inflation 
rate is said to have caused the 
difference hetwen the two pro- 
jections, The decline permits 
greater optimism about real con- 
sumption and some other sectors, 
hut the report anticipates only 
slight effects from this, because 
lower inflation helped keep wage 
settlements below 6 per cent in 
this year’s “spring labour 
oe es'ne ,‘-nlv ETAO HRDL 
0 (Tensive.” 

The centre expects consumer 


TOKYO. June 27, 

prices will rise faster later this 
year due to higher produce prices 
and utility charges. Consumers' 
real incomes would thus rise 
little, and consumption would 
also rise little. 

The projection is also based 
on the assumption that bousing 
investment will actually decline 
in the second half, that the 
Government will not cut taxes, 
and that its supplementary 
budget tins year wil l be less than 
half the level of last year's. In 
the past projections like the 
Centre’s have often led to 
adoption of policies that have 
invalidated the assumptions on 
which the assumptions are based. 

Separately today the Ministry 
of International Trade and 
Industry (M1TI) released statis- 
tics indicating that Japan's 
domestic expansion might be 
slowing down. The seasonally 
adjusted index of manufactur- 
ing and mining output rose 0.3 
per cent in May. the second con- 
secutive small monthly increase. 
In April the index had risen 0.1 
per cent, after a 2.1 per cent 
jump in March. Mm officials 
said they expected continued 
weakness in June and July. 


Ethiopian troops said to have 
launched Eritrean attack 


ETHIOPIAN troops have 
launched a major three-pronged 
attack on Eritrean guerrillas, the 
Eritrean News Agency reported 
last night The Damascus based 
agency said the new offensive 
followed the failure of Ethiopia’s 
first attack last month. 

The agency, run by oneof the 
two main guerrilla organisations, 
the Eritrean Liberation -Front 
Revolutionary Council (EUJ-JtC), 
said the offensive was launched 
from the south, south-east and 
south-west of Eritrea. 

Heavy fighting was taking 
place between the guerrillas and 
Ethiopian troops in the Adwa 
area, ** where the Ethiopian 
regime is massing military'units 
I supported by tanks for the 
I attacks,” it said. 

“Ethiopian occupation force 3 
also moved from the Rashiri 
sector with the aim of surround- 
ing guerrilla forces from ‘the 
south-east and heavy fighting is 
now going on between the two 
sides," it added. Ethiopian 
planes were “carrying • ont 
continuous daily raids on liber- 
ated Eritrean regions and 
towns,” the agency said. 


Tn Bonn, an ELF-RC leader 
said Ethiopian planes yesterday 
bombarded two towns on the 
Adwa-Asmara road in a build up 
for a drive northwards. Dr. 
Habte Tesfamariam told a Press 
con ference that according to 
information received by phone 
today from Khartoum, the 
Ethiopian Air Force was bomb- 
ing Mandefara and Adiquala. 

• Ethiopia has responded to 
Somali guerrilla actions in the 
Ogaden region by sending troops 
on search missions to remote 
villages, according to reports on 
Addis Ababa radio monitored in 
Nairobi. 

It said regular soldiers and 
units of the People’s Militia were 
sent to villages within a 40-mile 
radius of the strategic tank base 
of Jijiga on the northern edge of 
the Ogaden to search for what It 
called “Somali bandits.” 

The report was the first 
official mention of military action 
against the guerrillas since 
before mid-May, when the 
country’s Marxist military leader 
LL-Col. Mengistu Haile Mariam 
toured the Ogaden after tbe end 
of the eight-month 'conventional 
war against Somali forces. 


DAMASCUS, June 27, 

It could signal a new 
impatience with the guerrillas, , 
who have claimed increasing, 
successes against Cuban and 1 
Ethiopian troops stationed in the . 
vast semi-desert area and with 
their moral and material backer 
Somalia. Reuter 

Loan for Indonesia 

The Export Credits Guarantee 
Department has guaranteed a 
$S.5m loan which Lloyds Bank 
International has made available 
to the department of Finance of 
Indonesia to help finance a SlOm 
contract awarded by the Depart- 
ment of Education and Culture to 
Philip Harris (International). 
The order covers the supply of 
laboratory equipment for the 
physics, biology and civil and 
mechanical engineering faculties 
of 10 Indonesian universities, 

Mitsubishi cars 

Mitsubishi is to export its cars 
to France at the end of this year, 
Reuter reports from Paris. They 
will be distributed by the Porsche 
subsidiary Sonauto 


Zambian 
aid talks 
attended 
by Saudis 

By David White 

PARIS, June 27. 

A MEETING on emergency 
aid for Zambia began here 
today with the unusual pre- 
sence of Saadi Arabia along- 
side a dozen other donor 
countries. Saudi interest In 
reinforcing the international 
aid contribution is seen as 
reflecting the Saudi Arabian 
Government's growing concern 
with political developments in 
Africa ami the spread of 
Soviet Influence in the con- 
tinent 

The Saudi Arabian Fond for 
Development Is taking part in 
tbe consultative meeting along 
with Zambia's traditional aid 
donors — the U.S., Canada, 
Japan and eight Western 
European countries including 
Britain — and internatiomd 
institutions. Among these is 
the IMF. which recently 
granted Zambia a two-year 
credit package or $390m. 

Yugoslavia Is also par- 
ticipating In the meeting, held 
under the auspices of the 
World Bank, with another 
interesting newcomer — 
Romania — as an observer. 

Vietnam rejects 
Cambodia claim 

HONG KONG. June 27. 
VIETNAM today dismissed as 
a ridiculous fabrication 
Cambodia's claim last Sunday 
that it had thwarted a Viet- 
namese-organised plot to 
topple the Phnom Penh leader- 
ship. 

The Vietnam News Agency 
quoted an editorial in the 
official dally Nhan Dan as say- 
ing: “ Have the Kampuchean 
authorities gone crazy? Their 
fabrication is so ridiculous that 
people could not help but 
laugb openly.” 

The Phnom Penh Radio 
report, quoting an Information 
Ministry spokesman, said tbe 
alleged plot was foiled last 
month. It named six Viet- 
namese accused of organising 
frequent secret meetings in 
Eastern Cambodia. Reuter 


NIGER’S URANIUM RESERVES 


The key to an improve 
economic future 

BY A SPECIAL CORRESPONDENT. RECENTLY IN NIAMEY 


Iranian oil 
output up 


TEHRAN, June 27. 
Iranian oil production rose 
7 per cent in tbe month ended 
May 20, the National Iranian 
Oil Corporation said today. 

Production between April 21 
and May ‘20 totalled 5.91m 
barrels a day compared with 
5.51m in the previous month, 
an NIOC spokesman said. 
Reuter 


THE LANDLOCKED Republic of 
Niger ranks among the world’s 25 
poorest countries in a recent 
United Nations survey. Its already 
weak economy was probably the 
hardest hit of all the African 
nations by the Sahel drought of 
the early 1970s This gloomy 
picture is gradually starting to 
be altered by growing uranium 
production and the prospect Of 
the continued high prices for 
this strategic metal. 

Niger's commercially viable 
uranium reserves, generally esti- 
mated at over 100.000 tonnes, are 
round in the remote moun- 
tainous Air region in the north. 
The -open-cast Arlit mining site 
was developed by and for the 
French Atomic Energy Agency. 

■ through a multinational corpora- 
tion called Somair, with German 
and Italian capital. Since mining 
began in 1971, production 
increased from 410 tonnes to a 
record 1.S0O tonnes last year. 
Niger currently occupies the 
fifth spot among uranium 
exporters with approximately 
5 per cent of total world outpuL 

In 1975, the military regime 
beaded by CoL Seym Kountche, 
achieved a revision of tbe 1981 
co-operation agreement which 
permitted France unilaterally to 
set the price it would pay for 
uranium. Long drawn out negotia- 
tions led to an agreement under 
which Niger's share in Somair’s 
equity rose from 17 to 33 per 
cent. Now the Government in 
Niamey sets taxes and prices. The 
quintupling of the price of 
uranium since the energy crisis 
in 1974 and increased output has 
caused Niger’s earning to rise 16- 
fold to 16bn CFA francs (about 
£3Srn) in 1977. This covers 40 
per cent of the current national 
budget 

Flans axe going ahead for the 
opening, in 1973, of a second 
mine at Akouta. Jointly owned by 
the state (31 per cent) and 
French, Japanese, -and Spanish 
interests, the Cominak mine is 
to produce 2.000 tonnes by 19S0. 
The Government's uranium plan 
foresees another doubling of total 
production by 1982 to around 
8,000 tonnes when Niger should 
be black Africa’s top producer 
and the second or third largest 
exporter in the world. Talks are 
currently progressing for the con- 
stitution of a third company to 
open up another mine in the 
Arlit region at Imouradan. 

Senior government officials are 
a bit wary of excessively 
rapid development of this sector 
for fear of killing “the goose 
that laid the gold egg.” 


Tbe minister of mines, 31. 
Aroiuna Mounkeila. has let it 
be known that the Government 
intends to go cautiously in order 
to husband reserve's- This 
attitude is also reflected in the 
use of uranium revenues. 
Instead of rushing into prestige 
projects and expanded expen- 
ditures like other mineral-rich 
African countries, Niger 

channels almost ail uranium 
receipts into a special national 
investment fund. 

A key problem hampering 
uranium operations is the lack 


MILES 500 




ALGERIA ‘'-.LIBYA 

■: 


^T’rwjo* 

MALI] 

* J NIGER 

NIAMEY j 

OPPERV n — J 

VOLTAOrd* 

:"**•*' sTT * I 

: i S\sf* I G E R 1 A i 

f JL sJ 

; cotonou < 


of transport facilities. The min- 
ing centre is over 1,200 miles 
from the port of Cotonou, in 
Benin, where the uranium con- 
centrate is loaded for Europe. 
During the rainy season the 350 
specially designed 25-tonne 
lorries have great difficulty in 
covering the Agadez-Tahoua 
stretch. In order to assure 
steady year round deliveries, a 
400-mile tarmac “ uranium 
road” is being built from Arlit 
to the capital. It will be financed 
by foreign companies through a 
special export tax on uranium. 

Niger's uranium resources not 
only save it from a dismal 
economic future, but also 
greatly add to its strategic 
importance for the West, and 
especially France. Given the 
decision of the French Govern- 
ment to ecu hark on a big pro- 
gramme of nuclear energy, it is 
not surprising that the French 
are particularly sensitive to any 
political change in its former 
colonies (Chad and Gabon as 
well as Niger) where uranium is 
present French military 
strategists are worried about the 


possibility of “ destabilisation ” 
in Niger. 

This concern was echoed by 
tbe foreign minister, M Louis tie 
Guirangaud, at a meeting of the 
French Foreign Nuclear Policy 
Committee in December. In a 
confidential report he stressc-d 
the “important risks” of a 
possible breakdown of supplies 
from Niger. France's largest 
supplier. France, he said, "could 
lose FFrIOm (about £1.2ni.) if 
mining (in Niger I were to stop 
for only three days.” He went 
on to add that “ the purchase of 
substitutes from other markets 
would mean payment in foreign 
currency rather than franc-:." 

President Kountche seems to 

be aware of both the precarious 
position which dependency on 
uranium exports puts the 
country and the dangers it faces 
on a continent increasingly 
beset by great power rivalry. At 
the recent Franco-Afncan Sum- 
mit Conference in Paris, he was 
one of the beads of state most 
criticial of the proposed pan- 
African intervention force. 

Niger maintains excellent 
relations with ail its neighbours 
and bas played a leading role 
in attempting to negotiate a 
settlement in Chad. A minor 
territorial dispute with Libya is 
now being resolved. 

The state-owned mining com- 
pany. Onarex wants to find new 
clients for its uranium. Last 
year, for instance, 175-lonnes 
was flown to Manchester airport 
for British Nuclear Fuels, Ltd. 
It is believed that Britain may 
be developing its “Niger con- 
nection” in coming years. 

To avoid putting alt its eggs 
In one basket. Niger is also 
trying to exploit other mineral 
resources. A coal mine at 
Anou-Anem, whose reserves are 
pegged at 5m tonnes, should 
enter into production iu 1982. 
The production is earmarked i to 
supply energy for the uranium 
mines thus reducing oil imports, 
Another mining venture on the 
agenda is the opening up of a 
phosphate deposit, put at 250m 
tonnes, near tbe southern 
border with Benin and Upper 
Volta. 

Hopes of discovering exploit- 
able oil also exist Texaco has 
found oil at Madama-Termit 
about 300-kilo metres north of 
Lake Chad. Other oil companies 
including the French Elf-Erap. 
are perserveiing with explora- 
tion. The results are still 
unreported, but economic plan- 
ners in Niamey have finally 
begun to smile. 



Swedish nuiserv school staff have 



nrsenoe 

ihildren. 




Since the nursery staff of lie change came about calculating <?f fees, the billing and 

tie municipality ofTaby have becauseTaby municipality asked record keeping. Practically the 

been relieved of most or their ad- IBM to help improve their only ad mini strative work left for 

minrstiative work, they have more administrative routines. Now the the nursery staff is to fill out and 

time to spend with the children. IBM Datacentre deals -with the send in a simple attendance . 

record. 

Everyone seems to be 
content with the new system. 
Parents pay to the municipality 


„J559 ..... 

' : ~ ‘ ■-*<-' ' ' ' 

'X-U'..'; •»«*.««» : : 

. . . . .. ■ . , ■■■ .. ■ - ■- 

Mg 



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+ ■* -*■ 1 J. ViOiXM''} 







mi 

ih 



happily free of money problems. 
The staff themselves say they are 
more relaxed and have more 
time for the children, who in ' 
their turn get more and better 
care, jhe system also gives the 
municipality a clearer picture of 
expenses and attendance at the 
nurseries. 

In other words, grown-ups 
and children alike benefit from 
having a computer system take 
care ot as much as possible of 
the nursery administration. 


IBM UK and the future! 


IBM UK is growing. And 
so are its headquarters. Opened 
in 1976 at Norm Harbour 
Portsmouth, these occupy a 125- 
acre site on land reclaimed from 
the seabyEBMasamajorpart 
of the Portsmouth Harbour 
reclamation scheme. Already a 
second major office building is 
planned which will double the 
space available. 

North Harbour is just one 
example of IBM’s rapidly expands 
ing investment in Britain.Tnere ■ 
have been large extensions to 


A new computerized wafer 
resource system in Luxembourg 
help ed significan tly in 1976’s 
severe s umm er drought The 


AUU4U Wd-LCl U.UJ-LJ. ouj.- 

Sure dam instead of Luxem- 
bourg’s traditional underground 
source. This allowed the region 
to cope with the extra demands 
the wells couldn’t meet 

The IBM computer controls 
water feeding from die dam to 


the treatment stations, die five 


tion of the water, which provides 
over half of Luxemboiug’s daily 
needs.llt also has built-in alarms 
to control reservoir levels and 
water quality. It keeps day to day 
data on consumption in different 
areas and produces graphs to 
illustrate these. 

Luxembourg’s Water Re- 
sources Management say the 
system means that they can now 
answer the differing demands of 
every area with water of consis- 
tently high quality. 


development laboratory at 
Hursley, near "Winchester. The 
first phase of anew marketing 
centre at Wirwick has been 
completed, and the second phase 
is well underway. Work has 
begun on extensions to the 
manufacturing plant at Havant 


14,000 people, nearly all of whom 
are British. Their activities have 
introduced new technology and 
associated skills into the United 
Kingdom. Among the 48 loca- 
tions they work at is the largest 
IBM development laboratory 
outside the United States. 

In 1977, IBM UK’s tax pro- 
vision was 53 million pounds. 
Profit after tax was 57 milli on 
pounds, and capital investment 
was 89 million pounds. 

IBM is working in the 
United Kingdom to provide data 
processing systems, office equip- 
ment and related services which 
offer commerce, industry ami 
government new, more effective 
ways to increase their produc- 
tivity. 


centre is under development at 
Greentbrd Green in wfest 
London. 

Since 1951, IBM United 
Kingdom has grown from one 
office with less than 100 em- 
ployees, to an employer of over 


4 








tf <3^ 


38 



Acrour 

Op 

*Flrst Dei 
Dealings ti» 
Jun. 12 Jui 
Jvn.2$ Jnl 
July 10 Jul 

• •* New Urn- 
fr am VJO ajn. 

Worried 
certainties, 
hang fire a 
Account ye 

was a fur 
both Britis 
With fe* 

■scheduled 
were reflec 
trend in si 
not only i 
home, In 
pressures 
registered, 
led to tt 
showing J> 
early sessi 
Views t! 
was neces: 
today's co 
tan Exche 
were not 
pressure 
cnnsideral 
larked sl 
afternoon 
shorts air 
eventually 
close a n 
the day 
followed 
their loss 
Equity 
with the 
accordant 
Selling « 
— bargair 
the lows 
Account 
genuine 
drawn h> 
The FT 
index w; 
calrulati 
ea«ier a 
Anril 17 
ratio ii 
widened 
Influei 
back in 
tions lo; 
while r* 
as Soul 
19S7, at 
' 19*7 D> 

3 down 
First-til 
fuJ in 
stocks, 
capital! 
Allied 
at 90p. 
cent st 
11 per 
Nota 
of acti 
ment • 
the p 
finally 
per « 
sion f; 


.WORLD TRADE NEWS 


makes 




BY CHARLES SMITH 


TOKYO. June 27. 


FOKKER-VFW. the Dutch-West BAC One-Eleven in terms of scat British Aerospace .submitted ai 
German aircraft manufacturer kilometre cost. The development firm offer for the 670 version of 1 
which is competing with British or the Mark 6600 from Fokker's the BAC One Eleven (al so do! 
Aerospace for the supply of short- earlier Mark 6000 version of the ve loped specifically to meet TDA's 
haul airliners to Japan's Toa aircraft had involved a “very need for a quiet aircraft with a 
Domestic Airways, today made a simple " lengthening of the short take-off capacity). The two 
formal sales offer to TDA. The fuselage to accommodate an European offers 3 re regarded as 
offer was presented to the presi- additional 15 passengers (giving a the main contenders for an order 
dent of TDA by the sales director total capacity of 100), Mr. Buley which may start with only three 
nf Fokker-VFW International, Mr. said. to five aircraft but is expected to 

A. R. Buley. He declined to reveal how reach at least 12 aircraft and 

Its terms, including price and many Mark 6600s Fokker would possibly as many as 20. 
the number of aircraft covered, have t0 build for the new version A proposal put forward last 
are being kept secret Mr. Buley of fJ . e aj. rcra f t t0 be a viable pro- week by McDonnell Douglas for 

did say. however, that the com- ■ However Fnkker hirt the d* v ®topinttU of a revised ver- 
pany was guaranteeing a fixed portion. However, Fokker h3d sion of the £, C9 carrvinc ]og 

price to be paid on delivery of undertaken to launch the project passengers is regarded ‘as beina 
the first aircraft in 1981. He also with an order Tor fewer aircraft w jd e 0 f t )j e mark’ because "the ai* 
claimed that the Fokker F-l’S than TDA was ultimately ex- cra f t V vould be too kir’p for 
Mark 6800. the version developed pected to need. TDA's estimated needs and" would 

to meet TDAs needs, was 19 per Fokker s formal offer lo TDA a | S0 pr0 bublv take too Inpo t0 
cent cheaper to operate than the comes more Lban six months after develop. 

Mr. Buley stressed today that 
the F2S is 3 u European a i reran " 
with a large British component. 


Kximbank approval 
likely for $240m 
loan to Algeria 


•• • ' -- ■; ;; . : g '^0-- 


KLM-Iraq airline deal 


AMSTERDAM, June 2". 


The wings are built by Short 
Brothers and the aircraft is 
equipped with Rolls-Royce 


BY CHARLES BATCHELOR 

KLM Royal Dutch Airlines said inenis with seven airlines .- , 

ii had signed an agreement eluding Viasa. Iran Air. Pakistan eD o«“es. 
giving Iraqi Airways access to Airlines and Air Anglia. Reuter adds From Tokyo: A 

KLMs l-o nip liter-control led auto- KLM also announced it has British aerospace mission ’ today 
matic reservations system. ordered two flight simulators, for met senior officers of the 
Thf» cvtiein knnwn as CORD A Douglas DC-10s and Boeing 747s Japanese ground defence forces 
l Comouterised Reseri-ations frtim Canadian Aviation Elec- to try 10 interest them in buying 
Royal Dutch Airlines) will link * ° f Moatreal for B ritai "' s Harrier jump jet fighter. 

Iraqi Airways offices in Baghdad. ^ . _ _ A spokesman ior the company 

Basra and Mosul as well as in *> L , M alread.v has one DC-10 said the nine-member sales 
other Middle East countries and ^ n»*s.si on would make a present*- 

Europe, with KLM'., computer *„?°*J5* 'i 1 * imu, a t ?_ r - tion tn Japanese aircraft industry 

■ entre in Amstelveen. south of ®“ l . orde « for . more l4 ' s leaders tomorrow. The export 

Amsterdam, from April 1. 1979. * e . * ra J! sFer ** crew s to price of a Hamer is about Y2bn 

other aircraft make the extra t$9.7m> he added. 

It will allow immediate con- equipment necessary. Its train- However, the chances of sales 
firrnatiwi of reservations, hire- ins centre at Schiphol will he are thought to be low as Japan 
car and hotel bookings. KLM considerably expanded in the has just agreed to buv the 
has already signed similar agree- next few months. American F-15 fighter 


THE Ui. Export-Import Bank 
has tentatively approved a 
$240m direct loan to 
Sonatraclu Algeria's State- 
owned oil and gas monopoly 
to help finance construction of 
a liquefied natural gas plant 

Eximbank has advised 
Congressional leaders that 
this project at Anew will tie 
Sonatracb’s second plant to 
liquefy natural gas from the 
huge Hassi R’mel gas fields for 
export to various countries. 
Total cost or the LNG plant 
will he about $1.7hn. 

The U.S. export credit 
agency said that it will require 
about $360m in U.S- equipment 
and engineering services to be 
provided mainly by the 
Pullman Kellogg division of 
Pullman of Houston Texas 
and by Air Products and 
Chemicals of Allentown, 
Pennsylvania. 

The Eximbank loan at 8J 
per cent annual interest is sub- 
ject to review by the House 
and Senate banking committees 
before Its Board, can give final 
approval. 


WASHINGTON, June 27. 

Souatrach obtained- earlier 
credits from the Eximbank: to 
help finance its first LNG pro- 
cessing plant at Anew, nut 
plant, said the Eximbank 
president. Hr. John Home, is 
now nearing: completion and 
will be a major gas supplier 
to the U.S. market. 

Mr. Moore said the -arrange- 
ments have not been com- 
pleted for the sale of gas from 
the second LNG processing 
center but (his gas also may 
be exported to the UJS.-or to 
Western European markets or 
to both. 

Algeria, Hr. Moore said 
“already has sufficient sales 
contracts" to use the output' 
of both of the processing 
facilities. 

In addition to the $24Qm 
direct Eximbank loan the 
agency said Souatrach would 
cover about 15 per cent of the 
cost of U.S. equipment and 
engineering services with 
548m in cash payments and 
would borrow another 932m 
from private leuders- 
AP-DJ 



M?- 







.ST COLIN A MacDO UG ALL ' L L :- .1 

• i - * • J ■ m 1 .^ J - 


CHINA’S SEAPORTS-' -bacfifid 'litotes 
over 50 her CMt>aiw 

Awt half nf vhifi'-vear^^^rectwe aHjfdtaouo n With - to- 

the first half, of 

There was a 'he^bncV 


Western unity on trade urged 

BY REGINALD DALE. EUROPEAN EDITOR 

THE WEST should join forces for longer, more favourable to avoid the daagers or retalia- 
te meet the problems posed by credits from developing countries, tion. 

low-cost imports from newly in- Today s terms would have been Western "overnmenK would 
dustria Used countries (NJCs), Mr. unthinkable a few years ago. have to accept th™ in five V> 0 
■Jacques '..roothaert. Director- Secondly. Mr. Groothaerc said years thev would no innnJr 
General at the Belgian Ministry the Western nations should able to bie ‘their economies ot- 
of Foreign Affairs and Trade, said understand that they could no their export industries on hems 
in London yesterday. longer all produce everything, like steel and textUes If the 

Mr. Grootbaert, who is respon- Some projects in the Third World West did not help the Third 
sible for external economic Vk '® r .® ° , ®“ ch s co PP that they World tn industrialise it would 
policy in Brussels, told the Bel- C » U ,„ D y be undertak en by joint be playing into the hands of Mos- 
gian Chamber of Crnnmerce that eB ™- ,, tow and Peking, who wanted to 
Western Governments must put . ine We stern countries would see the capitalist system fail, he 
an end to the current cut-throat ha I e *0 accept they were creating argued. 

competition in export credits on , c " i “ pe “ t 9''® b T jl e . L P in S"® w ^, UQ - Reuter adds from Geneva : 
sales to Third World markets. lr lf. s , H l *L s ndustr^a 1 ise. The West World trade negotiators have 
Such competition was extremely ! k ®“ n d „ n h ® v ? t t( ? ^ l east partial, y called a special meeting next 
dangerous us ai some Po'vnl industries to more Monday to hear the views of some 

Oiere were going to be losers, ho f?r„,w t L Cate . L ech ? 0, °ff i * s and 30 developing enun tires which 
pointed out. w0 “ ld have *.0 do it jointly. fee i left out of the multi-naitona! 

Mn ■ . ,, RIr - Groothaert said he was trade talks. The secretariat of 

1 *?.. l ?~ not , su S3esting that the Western tbe General Agreement on Tariffs 
?o niSSI? 5*I« VI lkc - ,y s ? eeI 1 . ® nd testile industries and Trade CGATT) confirmed it 
L°_ ^f e ® 5 ? r ? rae d'^fulLes in should be dismantled overnight, had scheduled a session of its 
financing their exports ia view Any protective action, however, trade negotiations committee, 
of the ever-increasing demands must only he temporary, so as which is expected to last one day. 


£lGm credit for Ghana 

BY MARK WEBSTER 

GHANA is to have a ilOm credit bad to worse in recent years with 
line tn cover selected imports, increasing receipts from cocoa 
the Export Credit Guarantee sales not covering an ever- 
Department announced yester- growing budgetary deficit 
day. The credit line will be pro- i n July 1977 the Ghanaian 
vided by the Standard Chartered authoK Sun«d a 
Merchant Bank. It will be the D f measures designed to correct 
first significant life line of credit the budgetary imbalance, absorb 
ex if L n ^? d t0 the Ghanaians. excess liquidity and get the 
Thp loan will be conditional on domestic banking system more: 
the repayment of some £7.6m of actively involved in financing the 
outstanding short tenu debt productive sectors of the 
insured by the ECGD. Tbe terms economy 

Snaked 1 Payment h * Ve StiU “ bC Budget proposals for 1977-78 

urgently needs the gSK/ 520 “ 

>rder to restore Its 1 

international creditworthiness, p^^/mqo cvr i r H 
Between 1971 and 3976 ECGD ' Si'S 

withdrew oil cover for exports ^ dfit 

from Britain because of Ghana's “JSSjE tn TpnnAn 

intractable debt servicing prob- cr ^ t GD t ^ Sa reflet thS 

It is hoped that the new line eff °™ Im P™^ 

of credit wUj be the first step revenue collection and 
towards re-establishing Ghana on clam P down ? n toe widespread 
the international. money markets, corruption. Increased receipts 
The insistence that the new 
credit 


Ghana 



Confirmed Reservations • Choose any 
flight any day • Stay between 7 and 
60 days • Book only 21 days ahead 

Call your travel ngenf and ask about TYVAs new Super-Apex fares lo America. 

LUeclive J5ih July. 


TWA ryrrit-s morf si h^dulpd piss^nar-rv .irTo 1 :'- Ihi* All.mlii Ihm iiir 



No.1 across die Atlantic 


from cocoa sales and cocoa 
will be used for" spare export duty are expected to pro- 
parts. tyres and agricultural duce 811 increase in total revenue 
equipment illustrates the con- ?£ Jt rouo< * 45 P* 1 f eht ^ or 1977 ‘ 
cern of the lenders that the new 19 78- 

credit should be used for Ghana's But cocoa prices have been 
most pressing needs. unpredictable on international 

The loan is of considerable markets and other measures 
psychological importance to the have been introduced by the 
Government of General Ignatios Government to raise revenue in- 
Acheampong. Tbe Ghanaian eluding higher duty on 
economy has been going from cigarettes, beer, wheat and salt 

CBI finance conference 

BY MARY CAMPBELL 

THE CONFEDERATION of the Asian Development Bank, the 
British Industry (CBI) is organis- World Bank and tbe European 
ing a conference in London lo Development Fund together with 
inform British industrialists on J W ? h . < T£S£ „ " 1 "? f 

how three of the major multi- i 

national lending agencies func- Tnm^Sfnn™ 

tion. It is felt that British Io “ l] nson. MP, Parliamentary 

companies have not been getting «£ ^vewp^^Devilnmneru^win- 

bv , ies^nsUmUon™ iM ‘ SfU “' ie<1 als0 ««"»"«>* confeS. U ii 
d> these insutuuons. bei , ng held 0Q July at ^ Cafe 

There will be speakers from Royal. 

Nigerian imports warning 



figures, this is some gui4a’t 

rate .at .'which Chipa^ . fd . . 

trade- is: growing:; Whjuevpifc> ; Two CMrteseT _ 
volume oLtxad^ih. the ^r^^f^-.Wjjp - irfflUi /ti 

of last : year, was nnusoaltfTkiw ^Tc^in w " leg JS Kfif ? JBfing,' huBc;;^argpes^ Gr -r 

because of the^poliliial twndagjgteiiwiw- ti#- IThB^GhineseJj 


■The rapid expansion 
handling is- due. 

nSBit'fSn Sr Srodoc35E^'ii5«or 

new: equipment. , i ^ 


High, level of 
Soviet debts 
‘may lead- to 
imports 




s,l t 




PARTS; June 2?;. 1 
THE SOVIET Union and othei^ 
European Communist 'natl&aa: 
ace so deep in debt to the .vrtkf' 
that they may soon have to .qpih 
imports of goods. ' 

This was the burden of a 
to-day hy tbe planning abd 
evaluation unit at the Organisa- 
tion for Economic. Co-opera tibxi 
and Development (OEGD) which 
estimated that, the Soviet Drdcfn; 
and its allies owe about 547buYo’ 
International banks and western 
governments. . 

The debts stem from, ix 
from western countries, chiefly of 
sophisticated : . manufactured 

goods, which were worth nearly 
$28bn, compared with fewer-thim 
$4bn in 1976. The Soviet Union, 
which also imported significant 


BY OUR OWN CORRESPONDENT 


LAGOS. June 27. 


AEG-TELEFUNKEN 


Summarized Consolidated Balance Sheet 
as of December 31, 1977 


A^SClS. 

1ST 
Millions 
of DM 

l£75 

Millions 
ol DM 

Liabilities 

1977 
Millions 
ot DM 

1976 
Millions 
of DM 

Finar.ciai . 155 cv; 

1 460 

782 

1.402 

issued share capital 

930 

930 

Fixes ano lin^ncal asseis 

2 2-12 

2.328 

Minority interests 

61 O 

73 

613 

74 

Diifej^n-.i.-s ansinq on consolidation 

1=5 

158 

Equity 

1,613 

1.617 

Ruceivnbios 

2.106 

3.713 

1.843 

3.736 

Liabilities 

long-term 

2,077 

1.899 

Liquid assets 

565 

543 

medium- and short-term 

5.127 

5.124 

Consolidated toes 

6.384 

36 

8617 

6.127 

27 

8.6J0 

Total liabilities 

7.204 

8.617 

7,023 

8.640 


ApcK ELI EFU rjt-M 3 L h, ep - C J' f av be obla:ned ff « of from 
furt^J ELE L WKcN ‘ AbL i < ' 12 ' Tfteodo ' , -Siem-Kar 1. D-6000 Frank- 


Berlin and Frankfurt M., in June 197B 

ALLGEMEINE ELEKTRICiTATS-OSSELLSCMAFT 
A 5G-T ELEF UNKEN 


Board of Management 



NIGERIA’S MONTHLY import be called a nation of importers," 
hill in recent years of about he said. 

N730m compared with average General Oluleye said that 
monthly earnings, mostly from following the glut in the world 
crude oil exports, of about oil market, Nigeria’s revenue 
N400ra, the Federal Finance was declining. It was therefore 
Commissioner. Major General imperative that Nigerians should 
James Oluleye has pointed out consume less foreign imports 
here, warning of the damages of and develop local resources, 
such an imbalance. especially in agriculture 

-Wu to, been importing 1 

nearly everything we consume in to ^ traditional biskor o..r 
this country, from shirts and economy 3 which' ls° aericultmr? 
ether clotbinp motor vehicles. We sZuw irive 
from machinery and building agricultural production not nniv 
materials tn raw materials and tobe ahl?»>flS!i “ffi 
food Hems. - he told bankers and 

insurance executives at a xximtT he said. ° 

reception. n e ’ added that the Federal 

He said it was regrettable that Government was determined to 
Nigeria had been running down carry through its recent budge- 
its foreign exchange reserves in F ary controls on non essential 
order 10 finance current consurap- > ni Ports and channel its invest- 
lion oT foreign imports- “We can into productive sectors in. 

therefore justly but shamefully order to ensure adequate supply 

or goods and services. 

Oil barter 
negotiations 

By Our Own Correspondent 
LAGOS. June 27 

NIGERIA IS renegotiating con- 
tracts worth 176m naira with 
Yugoslavian and South Korean 
shipbuilders, in which payment 
will be made m crude oil, accord- 
ing to the Business Times, a 
Lagos newspaper in which the 
Nigerian Government has 
majority stake. 

The report said the shipping 
contracts were among several 
which were being reviewed fol 
lowing a shortfall in Nigeria's 
revenue from oil exports. 

In terms of the contracts; 
awarded last year. Spirt of Yugo- 
s la via W3S to build eight multi- 
purpose vessels for N85m, while 
the order from Hyundai of South 
Korea was for II cargo ships 
costing N91m. 

The Business Times said the 
Yugoslav shipyard had accepted 
the barter arrangement, but the 
Koreans were having reserva- 
tions because their refineries 
process cheaper heavy crude oil, 
imported from the Gulf states', 
which are comparatively closer. 

Although Nigeria is committed 
to substantial capital develop- 
ment projects, the Government 
has placed a temporary embargo 
on the award of heavy contracts. 
Some foreign imports have been 
banned while internal tax 
machinery has been strengthened. 

A 


amounts of foodgrains, accounted 
for almost half the total, OECD 
statistics show. 

Since about 1970, Soviet' bloc 
exports have been unable to keep 
pace with imports, thus creating 
trade deficit with OECD 
countries which reached $9bs in 
1975 and is now at about ffibru 
The deficits have been financed 
mostly by increased bontyffog,'. 
and many of the ioansi are 
coming due for repayment in. the 
early 1980s. ’ ' 

“It is most .unlikely VJbat 
eastern exports and bo 
will suffice to permit .copil 
growth of OECD exports a£ _ 
rates," sqid the. report, published] 
in’ the ^ bi-monthly- „ OECD ' 
Observer. ' ■ 

“ Some levelling off , seem», 
likely at the high end of the 
range and, on plausible assum 
tions. some decline in the level 
of OECD exports to eastern 
Europe is quite possible, 

Tbe report defines Soviet bloc 
countries for its calculations as 
those belonging to the Council 
for Mutual Economic Assistance, 
known in the west as COMECON. 
There are the Soviet Union, 
East Germany, Poland, Czecho- 
slovakia, Hungary, Romania, 
Bulgaria, Cuba and Mongolia. 

The OECD experts offer 
several explanations. for the sud- 
den spurt in Communist imports 
from the west and. the readiness 
of Communist Governments to 
finance their deficits by borrow- 
ing — bad harvests in the Soviet 
union in the early 1970s— reces- 
sion in tbe west, which pushed 
western companies to seek new 
markets for their goods and left 
international banks with avail- 
able funds; a deliberate decision 
in Communist countries to raise 
growth rates hy importing high- 
technology equipment; a corres- 
ponding increase in western 
export credits, willingness by 
western bankers to lend to the 
east and a loosening of restric 
tions which had been imposed 
for security reasons in cold war 
days. 

Although they have not kept 
pace, annual exports from 
Communist countries have grown 
by S22bn including S5.5bn worth 
of Soviet oil and gas, from just 
under $4bn in 1965. 

But, the OECD economists 
pointed out, Soviet oil exports 
are unlikely to continue growing, 
because of rising demand within 
tbe Soviet Union and the expense 
and difficulty of developing new 
fields. " Some experts even 
believe that, by the early 1980s, 
declining production and 
domestic needs will force a 
reduction," they added. 

Other traditional eastern 
European exports — Textiles 
clothing, shoes and furniture—^ 
also are unlikely to rise, because 
they remain what the report 
called “ relatively unsophisti- 
cated products." AP-DJ 


? ^^ enc 

by mau«ce A 

fiEPRESEETCSaXi^:) 

European Cpifr mission' rare ^ex-y-ing:- aiming -European * 
rfeeeted to gLv^ : fbei r .Tfrewisvabo pt-he Believes it~ cou]d^_ 
measures : t&r c&nhtsrsct' =tbe jsoaie foro^ of^ .direetjji£ 
-Arab boycott; - ♦ K * v ” 

i Lords Select ^nhmftw^trans-^years, 

Ffers its hearings tp BmsseJs .th^ fstsoif gly^ iuffoe n ced>-.t 

week after, .next.'; ."iMte- 1 Tom- African an&bqyeqtirl_ t 
N o rm antoh, Coxmmnratiy«;MD for ^'antt-^by.the dBritiste Jore 
Gheadle aod hf 'the cdtfe 'BflL- ' sthdiw 

European Fartia^eut^-ecohptmc 1 . ! 3 >rds^ r^conjinitJee. tm 
and monetary /cdnunitte^- S^dr'chalFxnantfljip' Of Lord 1 ] 
yesterday -that ■ ^ere'.' Svus ^ a iMand^r - ^ 

strong desire inside -the Partial ■-vlJOh* •.:ffbrmarrton, . as 
ment and European. Gommission /tyres^ of the' Briti^ 
For firm EOSC 1 resistance to iHsr, Employers’^ - AssociatloS 
criminatory , practices.- -‘But- tbd'-.com^dv^tbe ; Bill;-- Bpoh™ 
Council of Ministers, represeiitvLoTd Byerd;' despite ittm 
ihg member goYernmehte, laclned: It;;. ^ : the^ : ; UverpoidH 1 
the political yrUI-. Ip &whe_/a ; eareiL^f 
unanimous. dlredt^YeJ?’-V r; a^ >: 4b!^r: r -.ibterests. 

Fiat may assemble in Austria 

BY PAUL LENDYAJ - 'J- VIENNA; Jua 

THE PRESIDENT of 'Fia^ - Hr.'>f£ra^i;Aaly. Mr. Agnelli aii 
Giovanni .AgnelU, to da y for thelthat ^bje. project, which i 
first time officially confirmed. beCog'i .studied, would L 
here that his company ^nd ^teyb-'investments of about $13 
Daimler-Puch. ■ Ieadir^>$l50nL..‘ ~ .f ; 

Austrian motor- concern,’, are j.VThe - Idea , has. /long;, 
seriously - negotiMIng aBd'^^rf&moured; / in’. informed’.:* 
major project' inyoMng . .tte after fee failpy p of 

assembling- dfLahcia. 7 eatif:.^l8dhdtfcte‘d by^OIAG. the^H 
Austria.. r-.-r- t *.comiwu3ty„ ter. VnationaI^?fflk 

In an initiarpftasev there wouia-fafes.; ^witb ; the ^‘West-aS 
be an aunuai r outpuf;'of l5i006i PorscitefiJm: : ' . ^ 

three-litre Lancia . models: ; . - ' ;As a. result of Austria^ 

Mr. Agnelli; was speaking atU iqtentfon tb setup'a mbtqrli 
festive meeting hern today^conK try, 1 : . miiost Western 


.OOO Ftatvcars were aa^ntoled ^m^mepta .$&& 
k Austria ' \o~ M aiaamsr sports' ot Schl 

aggregate impqrt of300,00ff;units/ 




A Yugoslav Multinational 
Company ysg^ti arstafcg|i 

i s vital - 3 


in 


v;jf 

V. 


Iskra was founded in 1946. During the last 32years. 1he*j 



telecommunications; automation; componehts;.autombtive ^ 
components; consumer products; metal and chemical Kii 


'•* - v 


products; and capacitors. _ ....... . v . 

In 1 977 alone, output increasedby a massive 20% , andi) --- 
expoits exceeded 80 million dollars. These- iiguxes reflect .y 
Iskra s commitment to technological progress, and theporsifiC 
erf quality related to competitive pricing policies ih"e very. areA? 1 
of the Company 's diverse activities. With 1,600 technologists’: 
engaged in research and development, iskra ‘s future is firmly • 
grounded in a forward-thinking policy, ready for the 
challenges of changing wojld technology and commercial - .. . - 
innovation. . . 

Based at Cotdsdon, in Burrey;' IsJa^Limited is the British^, 
tradmgsubsidiary oHhe Parent or^uiiMtion. As well as selling 
a range of Iskra products izifhe United Kingdom, iskra Liiuiwf; 
has an impressive record of exporting-taw materials and other 
goods of British origin to the Parent organisation in Europe .■ • 

and other export markets. * 

For more information aboutjskra and its products, contact: a 



JR^dJaiids. Coulsdan. Surrey CR3 aiTT©hpi-6687141 Telex; 9^6880 ■' { 


- r 1 - ■ •- 


IF YOU WANT TO ENLARGE YOUR BUSINESS 
POSSIBILITIES IN TAIWAN, TRY EATO 

™ e u E nT' 1975' ^ a 2 !i° rSaniZa i l0 i i? a noa-profit organisation ■ 

s e t up in 1975 to help promote trade between Taiwan and European 

, W ® Presently have some 80 members who are leade^of 
industry and business in iron and steel, machinery, cement, plaidios 
textdes, canned food, electronics, electrical appliances, ^p^ywood’ 

glasses, rubber products, etc. •' . 

EATO is willing to help you ; ; 

to explore business possibOity Jn Tehran - 
to get in contact with trade partners: 
to gather trade information I - 

to arrange business visits to Taiwan : ; 
to resolve trade problems : " ' 

All these services are provided free? 


euro-asia trade organization 

4th fl„ 1 Hsu Chow Road, Taipei, Taiwan;"' ’ 
Cable: EATO TAIPEI. TeL 393-2115; ' ' ' 



'S 


1± 











Financial Times Wednesday '.June 2S i978 




I 




p a y w j^h-- iw» zaewroN ats :er, 

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01 Waterloo Road. L-ontL-nSEl SXP. Tel 01-928 7822. 

f, • ■ . 

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Industrial and 



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■53131B- 30-R&U OOlEtd 


Who says its difficult i 

to raise money 


PS , 

E5-3 

k ^Zat 












The faa is^we've offered over £70 million to 
more than 650 businesses in the last nine months 
alone. 

Thaft about £1% million a week.Or £375^000 
a day (^£50,000 every working horn: 

/ And there’s plenty more where that came from. 

If youre running a business that could use 
between £5,000 arid £2 million (pr even more), 
why haven't we met? 

\Xfe can provide ecfiity finance,fixed-interest 
loan finance or a coiribination of both. 

And give you between seven and twenty years 
to payback the loan. 


Meanwhile, we wont appoint one of our staff 
toyourboard. 

And we certainly wont lean on you to sell out, 
even if were one ofyour shareholders. 

Because our business is, simply and solely, 10 
help Britain's smaller businesses do more business. 

W e were set up in 1945 by the Clearing Banks 
and the Bank of England lor that specific purpose. 

And given the rather forbidding title of the 
Industrial and Commercial Finance Corporation. 

Our track record runs to over £550 million 
invested in more than 4,500 companies.W'itfr £58 
million currently invested 111720 companies as 


equity finance. 

All over die country there are companies that 
have extended factories and installed new plant 
with ICFC help. 

Financed sales at home and abroad with ICFC 
help. 

Increased their share capital base and prepared 
forCTTwidi ICFC help. 

We doubt if they ve got anything you haven't. 
Apart from our money 



The smaller business's biggest source of 
long-term money. 


• INDUSTRIAL AND COMMERCIAL FINANCE CORPORATION LIMITED. ABERDEEN 0224 530 22. BIRMINGHAM 021-236 ?53i. BRIGHTON 02'3 24-0:. E-=- i :i * : - V ■ f ‘c Ws 02! 3 62i26 C^PDf J'n:22 3JQ2T EDINBURGH 031 226 388? GUV-G/’W '*41 221 4456. 
LEEDSC532305U- LEICESTER 0533 26854; I2VERF0QL 051-236 2944. LONCON 0I-?28 7>.22. MANCHESTER vrl-SE 3 95-1J. NE'.VC ::" !.E : - -'3 TiOTiS p'K-H >.• .. V -:M RE\D!X 2734 861943. 1'TSfflELD 0;42 r.646a t 'JUTH.*nPTOK v70*5 32044. 

WE DO NOT REVEAL DVORMATION ABOUT OUR CU5 1 'JMEF5 WITHOUT THEIR F EPj.USd'jlL V£ F£ T rlEFlr 2f.i t; l- .1 -> L' L 1 C T| »C G - A'.r . \i aEi f£0vL : C'KTi £lr. HEU 5, iN FRODXlNG TTiiS ADv lRTI GaviEiJ f. 




33 


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iii. iinii 


Public ‘must pay 




BT LYNTON McLAIN 


aore to insure 
ome contents’ 


to 






Accour 

Op 

•First Dei 
Dealings ii< 
Jun. 12 Jin 
.Tun. 28 Jul 
July 10 Jui 


BY ERIC SHORT 


WARNING that the pnblic 


• ■* Mew Umi 
from 9 JO i.m. 


Worried 
certainties, 
hang fire a 
Account ye 
was a fur 
both Britis 
With fei 
scheduled 
vere reflec 
trend in st 
not only ii 
home In 
pressures 
registered, 
led to lh 
showing h 
early sessi 
Views ti 
was neces: 
today’s ca 
tan Esche' 
wore not 
pressure 
cnnsrderal 
lacked su 

afternoon 

shorts art) 
eventually 
close a rr 
the day 
Followed 
their loss 
Equity 
with the 
accordant 
Selling w 
— barcalr 
the lowe 
Account 
genuine 
drawn by 
The FT 
index wr 
calculatii 
easier a 
April IT 
ratio ir 
widened 
In fluei 

back in 
lions lot 
while n 
ac Soul 
19S7. ai 
' 19P7 f bs 

J down 
First-tir 
ful in 
stocks, 
ca Pi tall 
Allied 
at 90p. 

cent st 
11 per 
Nota 
of acti 
ment < 
the pi 

finally 

per ce 
sion U 


PLANS BY British Shipbuilders decision was only two or three Mr. Charles Rabel. marketing 

to build hydrofoils in under-used days away. The Royal Navy said director for hydrofoils in the . l4 

shipyards have been undermined it was "'reasonably close.” Grumman Corporation, said last A WARNING that the pnonc 

by the Government only days By opting for Boeing, the night that the next generation would have to pay significantly 

before the Royal Navy places a Ministry of Defence will have of fast patrol craft, which could higher premiums for insuring the 

flOm order for a Boeing Jetfoil robbed British Shipbuilders of be hydrofoils, would be needed contents of their homes was given 

craft. the chance to have a majority at s’ rate of 40 a year within yesterday by a leading insurance 

Mr. Michael Casey, chief stake in building hydrofoils, in 15 years. ‘ executive, 

executive of British Shipbuilders, partnership with another U.S. “ Once our production was ” r - Pat «• Bartram. general 
said last month that hydrofoil aerospace corporation. established in " 111 * U.K.. this manager of the home division of 

manufacture was one of the . could become our base for sell- Sun Alliance Group, speaking at 

' options open to the corporation in Invitation ing hydrofoils to the world." he the annual Press conference Of 

its moves to diversify from _ said. the British Insurance Association 

traditional shipbuilding and to The Grumman Corporation of Em th° Miaistry of Defence sald that insurance com- 
provide more jobs. New York had invited Vos per is understood to have only a I P acies . wer e experiencing severe 

This course appears to have Thornycroft, part of British short-term interest in hydrofoils. S Danc ial pressure on their domes- 

been Fuled out for the time being Shipbuilders, to build at least 50 for trial purposes. The seven dc accounts, primarily from 
by a Ministry of Defence decision per cent of its Flagstaff hydro- island class offshore orotection bouse contents insurance, 
to buy the first hydrofoil for the foils. These have been in pro- vessels, whose rote will be «irau- ln the P ast few y ears » “ e num " 




2 -V .• "• -.4' 

* •f'lfn.- 

*r-f- ^ 


Iv. . WUU51 .* 4 . .b^^pu&feBel* 

.- -mm ■ limit nrlc6‘ rises for- tedmScal 7 .0fe -Jthfe:- door ^ 

1 AW - boaks^ “for" ', a r- conHderabfc.rgenS^ Jrice- €br®j 
VI I IfiVB I |P% ■ rtferiArf * 1 : : . -.v.. . report- .pays- .mat fiatmfc 

. ^ BA This follows ’ <ifs«wfefy 'sia v ; il strong far jubiisBeis " 

sector repnrtr<on .. jbg .';bqqk apd'^eneraT books, 

■ By Oar Welsh Correspondent " “ industry, published yESTerday ^by ' strongtQT tech n ical 

th* y^i r Assig n frfofit.mar* -, 1 Thoeo ■' :fe. -goriMift 

WALES GAS : is seeking 1 gins cm ^technical; iwkfi w?r*. prise' an^ JnnoyalMm^ 
approval from the Britlsfi Gas ±Wice“tiJOSR.^r 
Corporation for a ; £43m invek- < books^ V .3 2 ; 

meat programme-" over r the nest - The ; commisSioU';* ' ^^T^riijaptwement.” "• .w. 

awyonto kM«tnfl^lHl<fe. ; 


tectadcal " 


Royal Navy off the shelf from duction since 1968, and are in lated by the Jetfoil. will not ber .°. f claim $ bas risen sharply 
Boeing, which has rejected the service with the U.S. Coastguard, need replacing ftr ten to 15 on ty P e °* insurance. Crime 

: j _ ^.r 1 : u:_ ^ fli-iimniifi en i ” * Inccnc V10H rira^ tfart* cfnanlt* a nr? 


idea of building its hydrofoils Grumman said that Vosper vears. losses had risen very steeply and 

' In partnership with Britain. Such could build the bull, sub-systems, * Boeing has also had talks with p , e ? ple in 6 en «al were making 

a scheme could, however, became and provide engines and other Vosper Thomvcrort, but thesf* claims for quite minor damage 

•■negotiable"' in the future, equipment for the first hydrofoil have not involved the partial 02 tbeir contents policies. 

Boeing said. for the Royal Navy if tbs Flag- manufacture of the fi**t Jetfoil Io addition - general level 



capacity. ■ :• ■ : price t Tesmeoon w 

The prb^amme, part' o£ : 
which has already been given ; "?^ S ‘ 
the go-ahead and is itHderway, g? . 
is to nieet Increased demand, 
particularly from Industry: - .^xES.--- 

Major schemes are planne d indxustry 
for ’ Cardiff, Newport and large publi^eW; i ^| 




Mo^pfthe'tra®^ 
"" "might profitahfi 
hi: posmve. 

ror urmn, mewport ana large 

Swansea where demand: is B4 per ceat~ sf: teehnwaV^Krjnarfcet for books w. 
approaching the maximum sales in 1W7: ^The^oti^ I ',22^^ ,'heypnd- the inipll^t :iai s 
supply capacity, but all parts few technical ; . . V ; . ; tha?:rwders, ctf n 

of Wales are ineluded in;the ; ' .-The sevep .liniitM 


Last night the company said a staff was chosen. 


MR. RON PEBT 


strategy 


EY NICK. GARNETT AND MICHAEL 5LANDEN 


does 32'Gt 


A BRANCH of Barclays Bank average working week of about 
will next month become the first 34 hours for the Brent Cross 


clearing bank branch with full staff. 


services at weekends since Satur- 
day morning opening was 
abolished nine years ago. 


itur- New shift payments will in- 
was voive rises of between £321 and I 
£1.065 a year which will bei 


The move follows agreement further boosted in the annual] 
with the back's staff association pay settlement, also due in July.i 


and the National Union of Bank The new payments represent a 
Employees — which generally rise of about 21 per cent on 


oppose Saturday and evening salary. 


The agreement for Brent Cross ! 5ola ’’ 10 the profitability 


for the Koval Na;v. | of premiums remained low, mk. rsum vkjsx 

— 1 — - " despite all efforts by the insur- The new chairman of the 

tj- t, . a -m ! an f. e companies to encourage British Insnranee Assodarion. 
fj 1 policyholders to index-link con- I 

| with lh, |™ raE spre^. amI)unt of onderjMurH*.' in 

Iff* y ? ar . °. n i^ *12. meant w jj Bre aon , insured ‘was 

S^/aEw^/ bJ * aliS“™f n ufedTe“Sht“criSSS 

^ _ _l easeb in pre . miums ’ levelled against the UK insur- 

TrajT.4- Rates to nse aace industry by insurance 

Mr. Bartram forecast that the managers of British Leylandand 
rates for contents would have to Keen and Nettle folds. The 

~ AH 9 increase by 50 per cent over the UK insurance industry has been 

eiEfaj ne -t Two or three years. The accused of being old fashioned 

--U iV all ba5ic premiuin rate for conte nts ^ attitude to new insurance 

insurance — at present 25p per risks and inadequate in meeting 
_ - . , . . £100 sum insured — has remained new challenges. 

By Our Industrial Editor unchanged for over 50 years. Executives at the BIA meeting 

He considered the rate would Pointed out that insurers charged 
THE GOVERNMENTS industrial rise to 371p per cent An excess what they considered was the 

srrategv will not contribute “ one provision might be introduced correct premium for the nsk 

iota ’’ to .hP IS v whereby the noUcyhoider paid bemg_ insured, with^e aim of 


programme.. had profit margiB^ : -'.'m:l^S'report says 

" Most gas .pipelines in Wales- to: - i"‘ 

were laid In the 1950s and. can book pubHfhier&V Experiment ... „ 

no longer cope with an ineroafi- j Butin ,l97ff they hati net profit . • 

ing demand. margins of d5 .4^pet.«i5t, .In’ :pa<jtaehxu£d - 

The £43m outlay is the big- aiat of the qther.^eom^aui^. « 
gest programme of its kind " • profit " gutrgin jfer ''•|)i 8clnijetf , . I ^ 1 ^ . 1 1 ^- p ^ 8 
in the 12 British Gas zeglomb publisher^ Improved'.^irtKCT jh-SS^^mShSs* 
representing 37 per cent jrf 1977 , ■wWle^t.nfdrftB:«*fers S 

the total investment In^trans-. ^ 0 vved HtUe chaage.v - /-- ; . > ffard ^ ti ^ 

mission capacity planned over - T3ie /rmoit- aniMslses in ". 
the five-year period. • commissi on> *. ^^T.-.iwmceru 

When completed in 1933, It techn i c^ boobs Appeared to ■ have .nia fortnity ^ in _ traa ^ , 

will have added 250 miles to contribute^dispropmefi ohately to Instead^ on thc/^ j , 1 . 

Wales 1 gas transmission mains the rec^t. mcrease in profita- of competition. - 
— making a total of L390 miles bility oTS«js»ren ffrmsl'V Mr- 

—and Wiir provide a- 40 per ; Z The Jfasoclatiba- .Setiretary^- ^ht^ds^o^l 

cent increase In the gas carOS? -sa^ tiiat-^n independent ^orvey- - -ati£ 

ing capacity. b . ' of prices of^echnical bookH ^oJa Tepoivs . . flfldmgs,- , 

Modern gas pipelines are shows that'v while /prices bavev immediate action is plan f k 
being deliberately bu3t risen -by 49:pdr7centi,vflro retail " + Price8, costs tmd j 
slightly larger than neecssary. price Andex rose ^y^S-per cent ^ie jtMibUshireff,, 
for storage as weB/ as fra ns-* over theisame period. ‘'binding, > ertef .jfismbUnj 

mission purposes. ‘ 31ie average price^ ; "o'f- all-books 


aid growt 


By Our Industrial Editor 


3 usaig ^metiiods 

2 tedntic^-bcibWJtppjaired “SwS 1 
to contribute^fispropotfi onately to instead^ on tho^ It V 

M the-rerefit^ificresse.in profits- of competitio n. 

2; jEJ»«saas»sw* w 


strategy - will not contribute “ one 


‘^Th^R h t th r rr The agreement for Brent Cross Hour" to the profitability or JeTrtpm^each d^lheS notmaking underwriting losses 

a L a H n] _ e 1 v :' henlh f n,a i a ri« row ' th <>f chemical companies b * ^friS^thl a^nilS^tively overalL They were not going to 


<0 V ». F25. %28?J&2S2r** STMT^SaSSS 


will open from 9.30 a.m. until structure of their branch net- . , f ‘ ’ 

S p.m. weekdays and 9 ajn. to 6 works president of the Society of the 

p.m. on Saturdays, generally in Barclays recently announced Chemical Industry, 
line with shop hours. a programme which will involve Speaking at a debate 

The bank and the union em- a total of 130 branch closures organised by the society in 
pbasised yesterday that the over the next 12 years while l Llindl .. n vesierrl-v h*. cairf’ ih-,. 
oranch was a sneeial case and 5c nnanmorihno i Lunaun .csterci..j. Be said that 


i Society of the Other insurance executives war with overseas insurers. Ill 1 .|lr|%| U 

ry . present at the meeting were, had complained that it M* 

. . however, less dogmatic on the could not get adequate products .’ r ’ 

t a aeoate jjkelibood of lifting premium liability insurance at the right WITH THE leading international 
tne society in rates for this class of business, price, while GKN objected more art dealers in London - for 


Five records for modern 
in Christie’s auction 


branch was a special case and Midland Uwoerimentina with Lundon - esterd:; - v ’ b * S3ld that While most admitted that their generaHy to the cpst ofinsurance Monday’s auction of von Hiiscfa 
t&nl' miwSSl oal >‘ " somewhat cynical UK domestic accounts were in the UK compared with certain Imprasionist pictures at’ 
'ic a precedent for change^ at a number of areas = j advantage " was that it" kept the causing problems, they did not overseas insurers. Sotheby’s, Christies seized the. 

other branches. v«n.ivi 5 v mhor hi, fhrwl^h-wing of the Labour Party feel that it was imperative to The UK insurance executives opportunity to sell Impressionist 

r fr I from interfering tc<o much." take such drastic action and were content at this stage to and modern paintings yesterday.: 


Barclays 


The union believes, however. b^Hald' That tbev-'had^ no! interfering 


immediate plans to explore the j 


possibility of Saturday open in 


thought that more effort should await developments. They! for £2,485,600. 


, df - selected ^ S V br£ch£ 


sites. The bank has assured the 


At present all of the banks 


‘A good team' 

He thought that Mr. Eric 


be made to get the public to pointed out that if they were t op price was £250*000 

insure adequately their home making excessive profits tin their ji ew . York dealer 

contents. underwriting there would be a Stephen Hahn for Nu dons- Feaa 


tprests to extend houre at Brent Bank ^^iary has .special because 'of tfe way^at Tey 
Cross, operates the onlv branch a ” an 3 C®aents for in-smre - kept the rest of the Govern- 


ed operates the only branch SSSSS^ 

»n the complex which is largely oanxin S| 

isolated from other shopping ^ 
facilities. | VT1PCI 

Mr. Leif Mills, the NUBE 
general secretary, said yesterday fumri £ 
that Barclays were also aware lUtlll A. 


Tyneside fire 
fund £74,000 


ment and Whitehall from damag- 
ing industry." 

Answering Dr. Bell, Mr. John 
Warne, an under-secretary in the 
Department, said the industrial 
strategy " creates an environ- 


Case for equal pension 


ages under review 


the Philadelphia Museum of Are 
It was the property of the late 
Baron Hatvany. .. i" 

There were five auction re£bn&. 
for artists, the most significant ' 
being the £185.000 . {raid by theit 
Le Fevre Gallery, of London for ' 
a view of The Poof of- London 






w mm 


been so .active during t&j 
"Hifsch Sales, ’j) aid £2i,ooa' 
rare. “ Augustus Rex" j 
.verie r ase and cover of . 1 
l ;. Sotheby’s also sold imp 
Continental porcelain fria 
eettectlans of Baroness-^ 
de .Bbtiischild, aod otfea 
H58,K?0, , with a small S 
cent bought ’in. .Two “ Ai 
Rex " Meissen bird cage -5 
made "nround 1731 and om 
property of the Kings npi 
eactsold for £14,000. 

. A Swiss dealer gave 4 
for a^Capodimonte snuff .1 
arwmd 1748. and two'K 


i'0- 

-i-zii Vx 




that the BaDk of International A FUND set up to help the mYnt'in which you can mafce‘the rBiSrvc in ™rt^nt Tho . Tow f r . Bri ^ e ^re-’ 

Credit and Commerce had been dependents of eight men who Government work for you." ? „ ™ L- JSSSSf J£. r £L ^.^ llar ^ cture “ m s 


orepared to come into the com- died in a Le on board toe wi- ?W wa? :i new ^ gre f U of pension ages were among topics case for annual retirement age the Tate Caller The pre^ow : 

Plex with a branch operating ship Glasgow at Swan Hunter’s Government accessibility and acl?»t forward for debate yesterday J?Jn cearereaS?^' and anmnFJ** l J e 

similar banking hours. Neptune Yard on Tyneside two countability to industry which i by the Government in a discus- ™ ^3-800 .set . at So^eby Parke 


*. .-r • S*'£-‘ 


BYANTONT 


similar banking hours. Neptune Yard on Tyneside 

The union and the staff asso- years ago closed yesterday 
elation have negotiated an E7-LOOO. 



vu L’uuuidimu: I r J ii;uumi> wuiun UJ Uic uuveumicul m a uiauua- nmMfln,! - n . . 

□ t now had *hn chance itself to helo sion document on problems of San«I? e it Bern rfi-« n 1 ? 7 J ?A ^ 

shape poll cios. I old aze. change. It stresses that the im- an additional. 10 per cent buyers 

‘ — - plications oE changes iu pension premium. 



4^v : ' : :v ."““iii 


study ° Uld reqUire muCh £urther The Swiss dealers. Forum Fine . . The £250.000 Renoir - With only 9* per cent lins^ 
On pensions and use of re- P“ d ^JO.OOO for Cezanne’s top pace was the £6,500;^ 

sources for old people, the dis- whpn f 85 - 000 from Forum Tine Art for 

cussion document asks- “Is there ♦J 151 * 6 * Monet’s Scene a Port Villez; and by Albert Moore. A;tS 

a case for a hlaher wnsion rate J i.® ? ° tmI ,' * be ^000 from Beyeler the work by Moore entitled. 

at a fixed iewithout^ird c* if 1 J 1 " Natloaal Swiss dealer, for a Degas pastel Fan. sold -for £8,500 to M 

toindi^al need orwoulSTbe ° f Sc0tlai f u of .dancers. . ‘ ’ London dealer, Owen 

more preferable to provide more nrl A ? a ^ 1 ? ly ? l0a ^ b i^- Adding Meanwhile at Sotheby’s yes- 
sernces for the very old? ” SSi^lioJwuvf #vU- < ?SSS a S« C -M eix -?’ terda y morning, eight items of 
A pledge to took after the in- £1-0,000 for Chaim Soutine s Meissen porcelain from the von JJ e iS5®.J»l2lS' 
te rests of the oW was made yes- mxsch coBection sold for 1 “g 

terday by Mr. Eric Pe a kins . record, beating £ 170 , 500 , bringing the total for 5? y 111168 j, 2 a v e 

Parliamentary Under-Secretary at !^ e / 94 * 500 861 ^ New York last the collectionto more than £16m, S”* 1 ?” 6 
the Department of Health and year " even before the important even- , L 

Social Security. Five works from the collection ing sale of Impressionist water 1 , ■ ^$5 

“Speaking for the Government of the late Dowager Duchess of colours. ~5 e Christie s^ safeE 


The £250.800- Renoir. 


figures modelled by Kaen 
Harlequin and an actor, j 
£10,000 each. 

Sotheby’s Beigravia -1 
good, solid, auction uf VI 
paintings which realised! 
with only O' per cent linae; 
top pace was the £0,500; 1 


sources 

cussion 


Speaking for the Government of the late Dowager Duchess 


I want to say that we are deter- Marlborough, who died at the age & r ecnrfl for » 

mined to ensure a happier old of 96 in November, sold for mece^EureoKm Mree?ain wa! “i. drawings^. 

!)!>P fnr nnrr coninr niti,nnc •» £219 000 tw piece _ot European porcelain, was £297.480. with ton or& 


auction of . Impressionist*; 


age for our senior citizens," he £219,000. They included a Degas St with the £105 MQ 1 DaiTbv ^ ffiff-’ 1 ?®' £°P pi ^ 
said at the launch of the Open pog. Douseuses for £70.1)0; ffi™ P to? a£ 


University’s course on the aging pother Degas Trois Donseuse^ ^Sremeiv rare “Meissen white 

population. for £65,000; and a Toulouse- 222J5I y Meissen wnite the Marlborough coil ecti off. 

Lautrec Femme assise su r on VSl S3A ^ m for a GhagaU.Ld4 

£ canape rouge for £58.000. This Inripm^rhl ^pnnJ 725 ' h **• Jacob. 

X. 7 lITl newly-discovered work was 2.°* b i, At Christie’s . South. Ke» 

Jill bought by the Piccadilly Gallery. S^^’nf J HS!S« IhH ton - a ®ood photographic 

I a Other notable prices were the SU, 2 s ft* 7 sn Walled £48^42. with a 

^rhpmp tnr 138000 {rom L °s Angeles The previous record was £78,750. by Roger Fenton of a Sffl 

ovuvmv AVFA dealer Ansley Graham for a por- A Meissen “Augustus Rex" model reclining taken tif j 

■w- trait of a girl by Modigliani vase with “ English birds," dat- 1850s selling for 

I #5 IFTIP which was sold by the Gordon ing from 1765, sold for £27,000, auction recordfor a phiKOffl 

JJiUliv Small Charitable Trust; the and Zeitz, the dealer who has on paper 


DETAILS OF a £3J>m expan- 
sion programme at Larne 
Harbour. Northern Ireland, 
were outlined yesterday by 
Mr. Keith Wickcnden, chair- 
man of European Ferries, 
which owns the port. 

Mr. Wickendcn. speaking 
after the opening of the port’s 
£lm Chain e Quay and two-tier 
ferry ramp, satd a contract had 
been placed for a second ramp. 

Plans were also advanced for 
a new passenger terminal to 
serve Townsend Thoresen and 
Sealink services to Cairnryan 
and Stranraer. 


■ ■ 

- 

■ 



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YO 

in 


New liner 
for P & O 


You re hungry for expansion and 
development. Israel is flowing with unique 
opportunities. And we know the secrets of the 
Israeli markets. 

Bank Hapoalim was born over 56 years 
We now have over 280 offices in 9 different 
countries. Assets of s Sbillion. 

And a wealth of experience stimulating and 


financing deals of major international importance. 

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personal touch we bring to everything. 

From nurturing trade contact. To holding 
the bank’s doors open. 

Get to know us better. By contacting the 
manager at your most convenient branch. 



P & O CRUISES has bought a 
12-year-old. 27.000-tun Utier, the 
K ungs holm, from the New York- 
based Flagship Cruises. 

The company would not dis- 
close the price. The ship was 
built in the John Brown yard. 
Clydeside. Tor the Swedisb- 
Amertca Line. 

Mr. H. F. Spanton. chairman 
of P & 0 Cruises, said the expan- 
sion of the cruising fleet 
reflected confidence in the 
passenger cruise sector, in 
which the company increased its 
pre-tax profits last year to £8.1m. 

The ship will he re-named 
within P i O's Princess series 
before starting Australian 
cruises early next year. She 
will undergo a refit, increasing 
cabin space from 400 to 482 
units. Tenders arc to be 
invited. 

A second outdoor swimming 
pool will be added to what is 
described as the vessel’s other- 
wise luxury class facilities. 




4J&M- 






Gas is clean, controllable 
versatile and econ omi cal - 
the ideal domestic fueL 
That’s why nearly 14 
million cus tomers have 
chosen gas to heat their 
honies and cook their 
meals. 

But like all fuels it 
shoul d be used wisely 
We have a booklet' that 
can help you. 

Among many important items it rovers. 

■ What to do if you suspect a gas leak. 

■ The laws on gas safety. . 

“ H °w to have your appHances properly installed 

and regularly serviced. 

■ Help for the disabled. 








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manager of the Standard ' Life 
Assurance Company.- said that 
total 'wealth in Scotland had not 
kept pace with the popuJation 
wishing to share it nor the 
resources available to produce it. 

. The prosperity of Scotland in 
the 19th - century was narrowly 
based on inter-depeadent heavy 
industries which . were now 
declining. However.! that historic 
prosperity Was- also .partly due. to 
the propensity of " the Scots 
people to save- Deposits per head 
had greatly exceeded, those in 
England; and it was in the -19th 


centurv. that • Scottish- life 


Confirmed Reservations • Choose any 
flight arijf day - Stay between 7 and 
60 days • Book only 21 days ahead 

Gall voter travel agebt and Hskebo at TWA'sn e tv Su per-A pex fares to Lbs Angeles and 
• • •• V SanR rnnriscg.Effeotive25th Itliy. 


In 1977 DG BANK, both an infer nationady orient- 
ed German commercial bant and the liquidity 
manager lor a system comprising some 4,800 
local and ten regional banks in the Federal Republic, 
continued to expand the scope cl its business 
and services. Our lota! assets increased by 20 
percent to DM 29.8 billion iUS $.14.2 billion i. From 
the net profit for the year, DM 30 million have been 
iransferred to reserves. Regarding our consolidated 
balance sheet loldl assets have g/oivn i:-> 21 per- 
cent to DM 43.3 billion tU5 220 b n.llionj mid share- 
holders' equity to DM l.l billion. The .-.hole banking 
system we head commands consolidim-d total 
assets approaching DM 240 billion >US Si 14 tnllronj. 

DG BANK Deutsche «I->-:r!Of.-.er:-''hailsPank. 
RO. Box 262*8. Wiesennullenorrai:-. 10. D-6000 
Frankfurt am Main 1, West Geniior.-. File ns: lOblii 
26 80-1, Telex: 0412201. 


'The compMe leaned i simmer.;, !•? ! n ih* 

Eu.idtsan;^r i- -m. * cort.fied 

without ouahhcauoo t-/ TftEUARfcEiT i ••■:•. ••• *' -r- vt v.'ri- 
schdtscuulungwi-rjidl&chiiit SwuritedVjr.-':. j-JIj...--'!, put4- 
ac c oununls, Fui i l furl am i.tjin. 


Condensed* Balance Sheet as at December 31, 1977 (DM million) 

A —--1^ Liabilities. and SnarehoKiers' Equity 


Cash 

Bill: lec^eKk* 

Dim Ifom region rx-i>?raiiv -2 banks . . . 
Due lr-:>m nlh~r tidi> l 3 

If.i-ar-urv ihUs 

B .-i '- lo and nr*l^-s 

[<ii- iiom hank ru'-il'-m- iv 

f • •'il i.jlis^ifiL-n claims on pufM>f auliionli*:-s . 
II--. •■■..|fi>--nlR m sur-srti.VKis and adiliatoi . 

Pi- niu-.-j cii ir.l i.-i:|ijij..iTHr : il 

Olh-.r dis-.ts . 


1 3 SO 

Cl l.tj 
4.270 4 
12.700 0 
1 .I'Sti 4 
3.7 -ici 1 
5.750.2 


5j 1 .* 

J? 

V*3\ a 


Due to regional cooperative banks . . . 

Du-? to oilier banks 

Duif lo non- ban! customers ....... 

Bonds and note?; issued 

Provisions and global valuation reserves 

Other liabilities '. 

Research and eii’i-M'ic-nal funds . . . . 

Capital and u ser v s 

Ft old alter Iranslir ic ic-seiv-.s 


14.055 

A 7ft 

5 

C 

O.J l J»_ 

2.445, 

.5 | 

2.*:-!63 

4 

154 

4 

430 

4 

! 

982 

; 

O • 


Erndnrsenif nt IwNMio* 
Guarantees 


2h.6i4 4 

35 f.6 
.*5.445 4 


Condensed* Statement of Income for 1977 (DM million) 


Income 


In! • i :-t.i paid and related e.-peiises .... 

Si aii t 

Opcialiucj expenses 

T-I — 3. 

Other -.v ponses 

Met income lor Ihs year * 


1 ..it 1 h 
50.6 
47.8 
61.1 
29 4 
47 h 

1.607 1 


Interest earned and r-latod income Irom lending 

and mone/ market activities 1.343. 

Current income trom securities and 

investments 201.' 

Other income . . 62.1 


1.607, 


Oil-from-tyies plant 
decision close 


BY DAVID FISHLOCK, SCIENCE EDITOR 


Closure of ethylene 
plant hits output 


A DECISION is close no whether 
Britain . will build what may he 
the world's first commercial plant 
making oil by distilling old car 
tyres. 

Batchelor Robinson Metals and 
Chemicals, the Birmingham 
specialists in recycling materials, 
said yesterday that by October it 

expected to decide whether to 
build a plant for recycling 50.000 
tonnes of tyres a year, at a 
capital cost estimated at £2.5m. 

Results from a pilot plant that 
' distils 6-13 tonnes of tyres a day. 
built and operated by a Depart- 
ment of industry laboratory, 
were looking “extremely 
encouraging." Mr. Peter 
Kavanagh, a director of B.nche]u r 
Robinson, said yesterday. 

He estimated that since 1975 
his company had invested about 
£500.000 in ihp process, known as 
pyrolysis, which converts the 
rubber directly into a light fuel 
oil by low-temperature destruc- 
tive distillation. 

The Tuel oil, low in sulphur hut 
otherwise very similar in quality 
to its counterpart from the 


refiner;. . is produced' at about 
450-500 degrees Centigrade with 
an air-free atmosphere in the 
chemical reactor. 

IVhai remains is .mainly a 
coke-tike char and a : tangle of 
steel wire "akin in a giant Briilo 
pad." Mr. Kavanagh said. 

Once Lhc.v have been separated 
magnetically, the char, will be 
sold as pulverised solid fuel, for 
example to a cement maker, and 
the 7.000 tonnes of stiel wire a 
year as scrap sice], a business 
in which Batchelor Robinson js 
already engaged. 

Ultimate I- 

“We see the plant aff (he uln- 
maie hole in the ginnnd for 
people who have to get rid uf 
tyres, namely the remoulders." 
Mr. Kavanagh said. Because of 
i no - concentration of tyre 
remoulding activities In London 
and (he Home Counties, rh«i 
seems the likely area lor the first 
plant. y 

According to Mr. Kavanagh, 
the 50,000 tonnes of tyres would 
re-emerge as 30.000 tonne* of 


refined oil. 15,000 tonnes of char 
and about 7.000 -tonnes of steel 
wire. 

Destruction or car lyres by 
pyrolysis is a technology that 

has engaged several large 
chemical groups, including the 
tvre-makers. al considerable 
expense fnr several years. 

The essence of the process 
operating at the Department of 
Industry's Warren Spring 
Laboratory, under the direction 
of Dr. A. 4. Robinson, is its 
simplicity. Mr. Kavanagh says. 

The laboratory designed, built 
and subsequently modified lh* 
pilot plant for Batchclur Robin- 
son. although (he technology 
belongs lo the company. 

For the past few months the 
plant has been running with 
yields of oil in excess of 40 per 
rent. Dr. Robinson believes its 
rarly difficulties, mainly in 
mechanical handling of the tyres 
through the plant, have been 
overcome. - Badger, the engincer- 
ine contractors, have produced 
initial designs for a commercial 
plant. 


BY SUE CAMERON 

THE CLOSURE nf JCI's ethylene 
plant al Wilton. Tee^ide. Iasi 
week has started lo hit the com- 
pany's output of polyethylene. 

! 1C1 said yesterday that it had 

! bad to shut sonic individual 
■ polyethylene “slroams" .il 
' Wilton although production al 
other sites was not affected 
It stressed that supplies in out- 
side customers wouJd not be 
affected because stocks would last 
for several months. 

The company said the closures 
would not lead to employees 
being laid ofT in the immediate 
future. Those affected would be 
given alternative jobs. 

When these ended they would 
still be subject tn one week's 
notice. 


ICI closed the ethylene plant; 
because of a snort ace r»f -.killed 
instrument artificer* and a 
dispute with trade unions over a 
proposed retraining programme. 

Managers from Wilton held a 
meeting with convenors of the . 
Amalgamated Union of Engineer-' 
mg Workers and the Electrical; 
ajtd Plumbing Trades Union tn 
discuss (be si l ua l ion vis a vis the 
instrument artificers. 

But a company spokesman said 
later that “no Dirt her progress” 
had been made. 

Ethylene is one r.r ihc so-called 
building blocks of the chemical 
industry, and is used in making 
polyethylene, poly vinyl chloride, 
ethanol and polystyrene. 


Avon to boost cosmetics 
output in Midlands 


Oil industry ‘should retain 
bigger share of profits’ 


FINANCIAL TIMES REPORTER 

GOVERNMENT MUST allow the 
oil industry to retain a greater 
share of its profits if sleep 
petrol price rises are to be 
avoided, said Mr. John Winger, 
vice-president of Chase Man- 
hattan Bank, yesterday. 

Energy use had consistently 
kept pace with the rise of Gross 
National Product in Western in- 
dustrial countries. Future growth 
depended upon a great expansion 
of energy sources, including 
petroleum, Mr. Winger told the 
Financial Times conference on 
Scottish finance and. industry. 

The capital costs of discover- 
ing new resources were, however, 
likely to be enormous: “Com- 
pared with the actual capital 
expenditures of the past decade, 
the required investment in the 
1975-1985 period is likely to be 
three times greater.” he said. 

Some of these funds— about a 
quarter — could he obtained from 
the capital market and a fur- 
ther quarter from depreciation 
and from other, capita! recovery 
provisions. But one half, of the 
industry’s capital requirements 
to 1985— estimated at S660bn.— 
would have to be provided out of 
profits. 

That in turn would require 
the amount of profit to be taken 
by the oil companies to rise.from 
30.86 per barrel at present lo 
S2.36 by 1985. Since that target 
was politically unrealistic, an 
energy shortage would result 

Although the gross- revenue 
of the industry has risen sub- 
stantially in recent years as' a 
consequence uf the higher con- 
sumer prices, most of the incre- 
ment has flowed to various 
governments rather than to in- 
dustry. And, therefore, too Utile 
money has become available to 
support tho capital Investment 
needed to accommodate expand- 
ing petroleum markets.” 

The only solution possible, 
therefore, was a cut in the 
amount .of money levied by 
governments -as taxes. 

' Mr. D. W. A. Donald, general 


assurance companies had grown 
to be the largest in the cotmtry. 

These companies were now 
concerned, however, at the future 
course of devolution and 
specifically over the possible re- 
quirement to cover domestic 
liabilities with domestic :assets. 

“ It may be taken as treason- 
able assumption that.-, under 
devolution, the currency in 
Scotland will not be other-than 
the pound sterling; but -even 
granted this, how does one decide 
the Scotti&b content of the in- 
vestments one normally' makes 
in order to determine whether 
Scottish savings are *• being 
reinvested in Scottish prosperity? 
There is no way of splitting UK 


FINANCIAL 


CONFERENCE 


Government borrowing. for 
example, between. England and 
Scotland aDd hardly any way of 
similarly splitting shareholdings 
of large industrial companies." 

The difficulties facing the com- 
panies in an independent Scot- 
land would be so severe that 
many would be forced to leave 
lo protect the’ larger pari of their 
business. 

Mr. Dennis Kirby, deputy 
director of the European Invest- 
ment Bank, said that Scotland 
had benefited greatly from UK 
membership of the Common 
Market 

Scotland had received £400m 
of the Xlbn worth of E1B loans 
to the UK since accession in 1972. 
Taking other EEC sources into 
.account — such as the European 
Coal and Steel Community and 
the European Regional Develop- 
ment Fund — aid tn Scotland from 
EEC sources totalled around 
£600 m. 

The ETB was created lo im- 
prove the prosperity of the 
poorer regions of Europe, to 
modernise some industries and 
to assist improvement in com- 
munications. 

“ In a community of 250m with 
economically strong areas such 


as Ge rman y and the Low 
Countries can obviously channel 
a far greater volume of help to 
needy regions than :«ny com 
ponent government. Thus there 
may be a better chance for 
community regional policies act- 
ing in concert with national 
policies than for the latter 
alone.” 

Scottish banks had grown at _ 
rapid rate over the past six years 
and future growth would be 
found on the international 
scene, said Mr. James Young 
general manager of the inter 
national division of the Bank of 
Scotland. 

Scots banks had pioneered the 
overdraft, had anticipated the 
Internationa! Monetary FundV 
Special Drawing Rights scheme 
and were the first commercial 
hanks to he organised on the 
principle of limited liability. Yet 
they had consistently turned 
away- from possibilities of growth 
in the 19th and 20th centuries. 

However, the banks bad alway 
kept 'substantial overseas 
interests ^and now counted s 
number of multi-national com 
panics among their clients.' All 
three clearing banks — the Clydes- 
dale, the Royal and the Bank of 
Scotland — had recently opened 
overseas branches. 

International development had 
been most marked in the growth 
of non-sterling lending, and a 
concomitant growth in deposits. 

“In 1971 the three Scottish 
banks’ total foreign currency 
deposits amounted to less than 
£21m. By 1976 the total had 
risen to nearly £822 m. In April 
1978 the total of currency 
deposits had risen still further 
to some £1.44bn. 

- “ On the asset side of the 
baliance sheet, the position is 
even more astonishing. In March 
1972 total loans in foreign 
currency amounted to £29m. In 
September 1976. only 4J years 
later, it had risen lo £581 ni, over 
20 4imes as high. And this 
growth has continued. By April 
1978. the total bad risen to 
£954.6171,” he said. 

Oil was not the major reason 
why a large number of forcipn 
banks had come to Scotland in 
the past 10 years, said Mr. J. C. 
Kearney, senior vice-president. 
Bank of America. 

•' The reason why sn many 
foreign banks bad come to 
Scotland was that Edinburgh was 
the largest UK financial centre 
after London and that a higher 
proportion of industrial output 
(18 per cent against 15 per cent) 
was exported from Scotland com- 
pared with the rest of the UK. 


j FINANCIAL TIMES REPORTER 

! AVON, the U.S. dirccl-seliing 
cosmetics multinational, is to 
expand its UK base at Northamp- 
ton by building a new plant on a 
nine-acre site. 

Mr. Brian Crnsliy. managing 
director of Avon in the UK. 
refused to give any further 
details on the value uf the new 
investment yesterday. 

Bui the planning application 
j showed that total jobs at the site 
i would remain roughly unchanged 
at 900. according to Northampton 
Borough Council. Planning per- 
mission to build a new factory 
had been granted last November. 

Work on the new site will 


b»‘sin iiiimediHifl;. and ihc new 
premises should he operation by 
in id- 1980. Avon elans to increase 
production to meet growing 
demand for its cosmetics in ihc 
UK and on the Continent. In 
last year's annual report, it fore- 
cast an average growth rate or 
10 per cent lor Europe. 

In April. Avon, which com- 
mitted itself last >eur lo new 
investment in Europe uf -S30m. 
said it was undecided whether 
to base its extra manufacturing 
capacity in England or Ireland, 
[t is understood that Avon 
decided on Northampton in spite 
of keen compel il ion from the 
Irish Government. 


Store in 
women’s 
credit 
probe 


BY ADRIENNE GLEESON 

DEBENHAAIS and the Equal 
Opportunities Commission are to 
co-operate in a study uf ihc 
stores group’s credit policies, 
with particular reference to 
equality of treatment for married 
women. 

The findings will probably be 
published in a report with recom- 
mendations which both parties 
hope will be taken as guidelines 
for the whole retail sector. 

Some SO per cent of Deben- 
hauis* customers are women. The 
group says it has not and would 

not wittingly have discriminated 
against them in provision of 
credit. But the Commission is 
applying itself to the problem of 
indirect discrimination of the 
kind shown by several retml com- 
panies recently in setting out 
their credit requirements. 

Such discrimination might, for 
example, take the form of requir- 
ing two years’ tenure of the same 
job. a condition not easily met by 
married women of child-bearing 
age. Ur it might require the 
applicant to he a houseowner or 
principal tenant, again a require- 
ment which most married women 
could not meet. 

Debenhams pleads guilty in 
having applied the first form of 
unwitting discrimination, but 
says its decision to co-operate 
with the Equal Opportunities 
Commission is evidence of its 
firm desire fur amendment 


Commercial radios 
claim more listeners 


BY CHRISTOPHER DUNN 

THE LONG-RUNNING Audience 
Research dispute between the 
BBC and cmnmercial radio 
dared again yesterday with 
figures claiming that indepen- 
dent radio now accounted for 
nearly a third of all listeners in 
the areas where it ■■ peraies. 

BBC's May hsiening survey, 
published last week, had shown 
that commercial radio's market 
share was only 15 per cent. 

According to commercial 
radio's survey, compiled by the 
Joint Industry Committee for 
Radio Audience Research 
l.IICRAR) last April. Britain’s 19 
independent stations accounted 
for ISSm hours per week in 
listening or the 561m hours 
broadcast by all the stations. 

BBC's Radio One came next 
with 146m hours uf listening, or 
33 per cent of audiences, fol- 
lowed by Radio Two with 20 per 
cent, and Radio Four with 13 
per cent. 

Mr. James Gordon, chairman 
of the Association of Indepen- 
dent Radio Contractors, which 
commissioned the JICRAR 
survey, claimed that commer- 


cial radio had increased Its 
brand leadership position by 
three percentage points since the 
la-M survey in April, 1977. 

Bin the BBC survey showed 
that Radio One. accounted for 36 
per ceni nf all listening time in*. 
May. closely followed by Radio 
Two with 'JS per rent. 

"There is a yawning gap in 
credibility belween the two sets 
of figures, and the BBC do them- 
selves no good by drawing atten- 
tion to it." said Mr. Gordon. 

He added that the BBC figures 
were produced by themselves for 
themselves, while the commercial 
radio statistics were produced by 

an independent research organi- 
sation in a specification agreed 
by an independent body. 

The BBC said that the dis- 
crepancy between the two sets 
uf figures niighl he explained by 
different sampling methods. 

The BBC measured ils 
audience on a daily basis, while 
JICRAR look a ihrce-week 
sample unco a year. Moves have 
heen made for the two bodies to 
pool their rescan-h effort but so 
far no firm decisions have been 
made. 


UDT car warranty 
plans extended 


FINANCIAL TIMES REPORTER 

UNITED DOMINIONS TRUST 
has extended the range of its 
motor warranty plans for new 
anti used cars and now offer.' 
nine from which dealers can 
select those best suited lo their 
customers' needs. 

Cover is provided by UDT’s 


wholly-owned subsidiary. The 
Continental Guaranty Corpora-, 
lion, and insurance covers two 
categories— standard warranties 
and executive warranties. Both 
provide cover against mech- 
anical defects, baggage and per- 
sonal effects, towing fees and 
cur hire for up to 60.000 miles- 


/ 



DGB4NK 

DrlwI. M Gsn , :-SjyTiji3j'iLlIs'C!cll £ 



The broadly based Bank 

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airliner 



Amoco Cadiz crew 
criticised by board 


NEWS ANAjL 

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by Paul Taylor 


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BRITAIN’S 10.000 #igh uSUset^wbrjp tai 


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BY MICHAEL-. DONNE, AEROSPACE CORRESPONDENT 


Accoiin 


□un 1 inquiry hi wMiganns .inf ahiwl-u ueeu a w iuc*. 1U 45 S *u»kv«o ■ *r*f,-'**r*y - P'^iPv W 'it.T ' ri Jiir- 

Opi THE EEC may ta able to help the Airbus Industrie A-300 Air- innovation and flexibility uf Cadiz disaster, hinted yesterday radio for assistance immediately National Health r^.Wgtts- pBd 


57?| 


Ufii MIL. rill* . UI2fv nr iiuic lu mrip mr .tiswup uiuu^u it; .-i-fjin/ «u r- i n in»v j lium jiiu inf.M«uw> Mi u^gait i , mmcu j _ r--- — -I - ■ , ■ --, f . f v r it >i it -.Tai'M rl n ; ■■ ■ r 

•First Dec with financing’ n«a? civil aircraft bus in ail versions, including the services, improve efficiency anti ! ih3t he thought the crew of the instead of waiting. Mr. Vaudo mune ration should go to arttftrar. f0r>tne ~ eneffliSB^vP^o^^pr5|: zt^eisiea- ax 

Jealings l»" devel»pnicnt " programmes in proposed smaller B-10 model, and lower prices in consumers.” tanker did “ too little. lot 1 late.” said: “I think not” . tion. The ^hemigts^bacfe^they ^ 


5Sh*i 


Dealings iw devehipmcnt programmes m proposed smaller B-10 model, and 

Jim. 12 Jur Europe, which is likely to cost the “ Joint European Transport -1 ,, n nnaQOf . tIlc u-imnission 1 m »•«:«»« c* P „i.-,i ...«.«.»»» w , , 

Jun.36 Jul ; ,s much a.s S*hn (more than (JET » senes of aircraft. seating says lh( , ma «nitude or the pro- i uf how the board is thinking. Sir rOlt aflCQOr 

Jnlyio JO* £li»n»: ' he 1 ween 136 and IBS passengers. posed outlays on launching new; Gordon, a former High Court - second 

The Cymsuis-ioo. in a new It also sees the Airbus Indus- programmes and the importance: Admiralty judge, suggested to a hn . rd ,u. t 
slu.iv on future European air- trie consortium as the focus of of the programmes in the longj witness that as soon as Die 

« raft, emphasises that it is not lbose programmes, modified to term “ may justify the provision j tanker's steering gear failed at TV' 1 


On finance, the Commission 1 in the first explicit indication 


New urn* 
from 9J0 a.rru 


Worried , raft. cm 
certainties, its re«p» 
hang fire at 
Account ye: uivcra f t s 
was a fur 1 ., ins;dt . r ..- 
both Britts! J" for ^ 

^h j®' with the airlines, 
scheduled 

were reflec' it adds, 
trend in sh Jti**:ins b> 
not only h i.«iuld hel 
home. Ini mu 
pressure® ir.*iu<lry. 
registered, craft, 
led to th 

Showing lr Tgriffc 
early sessn ■* “ 3 


demand with a lobby: 

-Westminster and ' ? a':^petition:^h€hiistsAvi)»Rijt^^tQr?A^_‘^ i l^WTk.~ 3 ?viS\ 

- sisraetf bv ' more * I- 


- tlit « Son as the *«* ** 
■s steering gear failed at was finally 


. u*i mi iue niaiiuiHvwnu “““ . . mein w ue emp:uyeu u:i re-: |t« j • i , 

i with the airlines. The commission is less structuring, or the budget aids.! rlindSJgnt 

ec’ H adds, h-wever. that there are entousmsUc about the develop- o r the European Investment! Sjr Gordon asked Mr . C o 

f ‘rJSo^-Sff *«” BrSn-^priosed^ HUM Ba0k * ! Vaudo. second mate f on 

ir i.nnld help, lu dv-clop a s ^ feeder-liner. The EEC sludv savs Dnln^nnoLIn 'Amoco Cadiz, if he had i 

Ini e.iru jjuropeaft aerospace ■ „"r ,u.. RCiHtlOnSlllp i hnanl nf the nbraso “ton li 


“SSf.. 'Jam™ the recent' cancedUtion of the KCiailonsnip , heard of the phra.se “too little, 

n -itMry. e-^ueudll.. Inr We st German VFW-6M, an air- The study adds that ihe t0 ° late - Mr. Vaudo replied he 


West German VFW-6I4, an air- The study adds that ihe r °o Jate - «r. vaudo ropneo ne captain WKluale Bawaa »w»r 

liner designed tn fit 'Lhat category Community as a whole can play had not. the Amoco Cadiz, as a g<wd , 

should "provide food for an important role in supporting .Sir i.iordon then asKed Mr. captain ” who did the best ne • 

thought about the chances of European aircraft producers' Vaudo lo look back op the could do in the circumstances. 


win. tv Vossibi linos lnclud** measures C.-naomi': success in the small efforts lo sell outside Europe, as casualty 'with the benefit of hind- However, Mr. ! 
„ '!2-L U' create a bigger internal Euro-, jet aircraft seolor." it is in Japan. ! sight and say whether he thought ridge, counsel for 

dav's ra pean market for airliners: 1 Means by which the Conimis- Efforts of this kind, if made I * JT.!" ^£5 « TSfJSJ! 


was necest 
today's ca 
tan Exchec m 
were not of 
pressure in 


uld do in the circumstances. 

However, Mr. Sidney Kent- prescription 

Age, counsel for the German Already s 
g that went to the floundering have closed t 
nker’s assistance, quesrioned and closures 



some: 4,080. ^hethjffts' pt--. : ^ urn0 T et ' 7 j^? .^;F^ ^ o ^30hk-tenn-- jitofaleaxs 

over the pastT.7 year8 -measure ’or -pTOfitafrttttsr- jn Street, .chemists^ .' T 


pressure iny lariff® urt imported a 
ennsiderab cj>p»e' i ally fmm the United 
lacked su The vlom mission clearly 
arternoon European aircraft straleay 
snorts am ,k, .-t»v<»innm. 


■d aircraft. i0 air far es in Europe lo overall relationship with oth“r rai,edl instead of wai£ins about Captain Maynard on the wrangle SmaU pnfri 
i l? d States, sumula:.- ; r.mpetiU ? n ,nd_ , indU-.lmlisfd cduntric and help ! ^ ulfStaSi SSjtoSS S 


eventually 
close a ri 
the day. 
followed 
their loss 
Equity 
with the 
accordant 
Selling w 
— barcrain 
the lowe 
Account 
genuine 
drawn bv 
The FT 1 
index wa 
calculatif 
easier a 
Aoril 17 
ratio ir 
widened 
lnfluei 
back in 
tinns lo? 
while r« 
as Sout 
I9S7. ai 
‘ 1087 ibf 
3 down 
First-tir 
ful in 
stocks, 
capital!' 
Allied ' 
at 90p. 
cent se 
11 per 
Nota' 
of acti 
ment < 
the pi 
finally 
per ce 
sion fs 


Si Gita'S t “„d£ ^!hliiTXt P ri* Sa nd^p a " d “-" alf !»«>» «»«« ^betWeen the tn 3 Mr «*».<£* 

Th, ^«.„ r clearly s cc S a ^ .,»«.« fo r - A l «'n "S ; j£K 8%, Si? SSS&SS 

Europcjn an-craft straleay evolv- more iniijvenuve domesm Euro- jnduMry a reasonable position, Mr Vaudo answered- '* At that Captain Maynard was justified in larger multiple chemists and ^r cent - nearby dttemist^' WhP r 

round the development of p«n market should lead Lo a?a ,n m the world. ! momint-SS.” ThLs w« became beUevSe thSt for rn^Vof fte su^nnarketeS It to Uttto. wonder -.The .departs^^ 

■ ~ ! (he crew did not know what was time the tug had a line aboard that .they the^Govenufifidt^. at. .is not the job^Of the lNHS' the ^ local -fioctofr.v'. • 

-bij • ^ xitf* wrong with the steering sear and the tanker it was not towing. attitude towards' .tfiem- ’an ‘.ffi-- provide^ ^ pe capital 

frpjaht tnpnage London office — p*m 


r&\ 


in-^ round tbe development of pean m:irket should 


&■ 
;*>i 


Canal freight tonnage 
lies dropped-HoweU 


London office 
for Eurobank 


By John Lloyd 


BY LYNTON McLAlN. INDUSTRIAL STAFF ' TH E EUROPEAN Investment'; jlllOl C (ltlUIg 

MIL DENIS HOWELL. Environ- MPs. published yesterday. The j Bank lElB). based in Luxem-| 

ment Minister, yesterday accused MPs had called for the transfer ' bo urs. is to open an office in j BIG BRITISH companies plan a to take on extra staff than theyl 


Big UK companies plan 
more sub-contracting 


The dispute which sparBed^e chem /as^bg &g,. 
off the chemists' 'public' display S5 1 ^ 

of anger and frustration at Wcsr-^m ^ -©g seek serve, .But i 

minster yesterday started: ia' P^ lc ®’-I ath ^ r thap^earj^nt. varue^ and . appeals,, continue tn - 
rt» nk<is rMaicik the only way-cheth^rtsi^ftn main- impression > oh- the 

prescriptions dispensed. • . Vef profit 'affeat: tasribas. f^^ctin^.is.inwcted^ 

V V ^ iyears failed to kebp-vP&ce.-with .teim\:tO"sa'v^^h^n from 

The ■ "Department • con tendeS,^* tie “--chemists '--<3axriL 1_ lIoS».‘- l :‘'r- r ^r;'f- 
that since chemists were- holding -™5. ^ ... v ;> y ... .._ 




a On unions select commilte of of the British Waterways Buard I London for an experimental one-igbarp increase in the amount of were 12 months ago: 1B.S per cent 
i-noring “factual evidence” from Mr. Howell's Environment ..ear neriud. Because of “in-lwork thev sub-contract in July- expect to increase staff inJiiIy- 

nluMii Britain's canals in a report Department to the Transport i ;. rPa .sed activity in Britain anri'c J: September, compared with 20 per 

in the British Waterways Board Department. 


Because of “3 S^Z^TZ T»J SS^fSSSF^CS^ 5?= 

' a'need 1 for^i loser dav^^div corf ! Se P ten,be . r ' ^ding to Man- ^nVlast^’uSSer. - ^ for: prescriptions filled- whiS ;;'^. 

. a neea r .rtiu.tr aa> cc ku. con power, the international work fc took account of 8tQCk lentL r; fT 

. nertmn nan L-c .nwm.r 1 Hnu/Aupr mnra PAmnaniAc ano _ _ _ _ , -■ ,■ ■ ^ L’y.17 1 *■. . ■ 


m 


published in March. He S3id tbat thjs was based on inection between banks. Govern- b ’ . However, more companies are *2° ld be Mdu'ead.' a^rtHngiy? ivj,' 

He said ii was astonishing that the mistaken belief that freight j meat and potential clients.” The contracting group. increasing, their level . oE sub- 5 rhaynii^s estiinstte that ' - 

the select committee oo was a major factor in Britain's j only other E1B branch is in The group's latest quarterly contract work. Now 14 J." per cent _^p b aR ■ redud^ their total 
nationalised industries had canals system. Out of the 2.000: Rome. survey of employment prospects, say they will use subcontractors ■ Ktr shm* Fl7m -since ■ 

tK.i ** rl^-nn-.li.. ^rnn in miloc rtf f.-inalc in Britain nnlv ...» , . hacori nn rmrirtt ft-nm t 5EA.Q nf mnni in .TiilD.Cantamhii, imm-. lU COIIIc OJ “ . . . _ . .* ? ..." . ! 1 


Te ther exolamS 


n 


ignored the “dramatic drop in miles of canals in Britain, only since 1972 the EIB has lent 
freight tunnage on the canals 300 miles were suitable for < £ibn tn projects in the UK. The 
and ihe mcreasinz share of the freight. The rest had to be used I Dnvernment has paid in £80m 
hoard's income which comes for recreation. over the period. Last week, the 

iiom Government subsidy.’ Mr. Howell's reply was ' ELB's subscribed capital was 

Mr. Howell was commenting criticised as *' disturbing " by Sir (doubled to T4.5bn. bringing its 
ou the Government's official Frank Price, chairman of the loan and guarantee limit to 
reply in the accusations by the British Waterways Board. 'Illibn. 


The survey shows that more labour were well up on the reduce their stocks of drugsr- 
cmployers are no more willing same period last year. most chemists hold about £&,O80. 


COMPANY ANNOUNCEMENT 


Time to marshal 

South Africa’s economic 


same period last year. most chemists bold about £5,080.1. ’• '. r ’ • T"'*- > , 1 

: • - . -T MR. C. GORDON ■ TETIJEI^ 'the 'deciding id 

• ' > ' ^utodal- Tiadte wnter.v^cKeff:fiL3iB%the.iHrion^l 

88th ANNUAL GENERAL MEETING' after s dis^t»*Aq‘o|idMred&cSk5<2v&^^:^^aiK- fm .. 

■ .... • : Vj.‘ control' of Azs- '■ coluHnL'.lrilffi a-,behig; oyer. 

OF THE CHAMBER OF MINES OF SOUTH AFRICA London Imlustrial' hrihririM &h ‘ the only per 

: 43 rd day yesterday of .his ibgJteE; was Mr.- .Mark. Vai 
productivity-orientated wage current account of the balance ^ that by publicising "the -rew^iB-'-the; &tiaer : of -the- 

aereements but without sustained of payments remains an area of the year before his di smi SS aLT he dbgpel, - and. a^. Mr. 


esources 


Thj following is an abridged 
version of the address by 
Mr. L. W. p. van den Bosch. 
Preiidenr of the Chamber of 
Mines of South Africa, at the 88th 
annual general meeting of the 
Chamber in Johannesburg on 
27th June. 1978: 


and the platinum group metals, 
plus a steady expansion in coal 
exports and the start of exports 
of rutile, zircon, titanium dioxide 
stag, and iron through Richards 
Bay. should ensure further growth 
in the value of exports in 1978. 



centnl banks to use gold freely 
in international transanions, to 
use gold as collateral for 
borrowings, as a basis for domestic 
monetary expansion, as a means 
of holding international reserves 
and as backing for bills, bonds 
and contracts. 


I ' • 


In the past year gold mining 
benefited from an increase in the 
average gold price and from the 
ready availability of Black labour. 
The mineral industries generally 
made a substantial contribution to 
the growth in exports, thereby 
playing a prime role in the 
spectacular improvement in this 
country's balance of payments. 
The singular performance of the 
mining industry, despite critical 
problems arising from the high 
rare of escalation of working 
costs, was the major force behind 
the economy's slow movement 
cut of the trough of this country's 


Coal is .currently being 
exported through Richards Bay at 
the rate of 12 million tons per 
annum. In some 15 months time 
the capacity of the railway line 
and harbour will be increased to 
20 million tons and investigations 
are in hand to determine the 
means by which coal exports can 
be further increased. 



Mr L, W. P. van den Bosch 


The srrength of the world 
demand For uranium, and plans by 
Chamber members co increase 
productive capacity to satisfy this 
favourable market have been 
features of the pair three years. 
The industry's uranium production 
rose once again last year, 
exceeding the previous year's rota! 
by 25 per cent. 


economic situation, sustained 
worldwide inflationary pressures, 
plus the possibility of further 
uncertainties in exchange rates, 
have undermined investor 
confidence in a number of assets 
competing with gold. 

MARKETING AND 


Over the past decade the 
monetary role of gold has gone 
full circle from official recognition 
to demonetization, resulting 
from the implementation of the 
two-tier gold market in 1968. 
back to the present effective 
remonetization of official gold 
holdings. 


In my view, the removal qf 
restriction on official gold dealings 
will lead to increasing central 
bank participation in che gold 
market which should ultimately 
improve its depth and stability. 


PROMOTION OF GOLD 


worst pose- war recession. 


consequence the Government 
ha: recently been able to take 
steps towards stimulating growth 
on a selective basis. With the 
possibility of a return to somewhat 
higher growth races, it is as 
well that there are signs of a more 
pragmatic approach bv the 
Government to internal political 
problems, particularly in the 
direction of rhe progressive 
removal cf racial barriers to 
employment. 


The combined value of long 
term and spot sales is considerable. 
On the basis of the present price 
of uranium, new business 
concluded during the past 
12 months is of the order of 
RI 300 million. 


GOLD MARKETS 


Sales of uncirculated 
Krugerrand coins improved 
substantially in the second half of 
1977 and this rrend has continued 
into 1978. in January sales 
reached a new monthly record of 
669 000. Sales for the first five 
months of 1978 of 2.5 million 
coins represent 74 percent of 
the total 1977 figure of 3.3 million. 

The upsurge in Krugerrand 
sales ever the past nine months 
'ects che increasing investment 
interest in gold. The marketing 
effort by the International Gold 
Corporation ilncergold) has also 
contributed to this substantial 


MINERAL PRODUCTION 


AND TRENDS 


The value of South African 
mme»'.’.l sales in 1977 amounted to 
R5 531 million, an increase of 
23.1 per cent over I97t»’s record 
total. This increase was achieved 
at a time when prices for a 
number of base minerals were 
depr*s;cd as a result of 
cisappointing growth rates; slack 
lev„ii o‘ capital invesiment and 
general economic uncertainty in 
most of rhe world's leading 
industrial countries. 


The market continued to be 
dominated by the industrial 
offtake for gold with jewellery 
demand growing in most of the 
developed world and with a high 
level of jewellery demand being 
maintained in the Middle and 
Far East. The last four months 
of 1977 were, however, 
characterised by a large increase 
in short-term investment or 
speculative demand brought about 
by ihe decline of the US dollar 
vis-a-vis other major currencies 
in foreign exchange markets. 


Despite these difficulties 1978 
Isqks set for a further expansion 
in earnings from South Africa's 
mineral etperts. The higher 
prices being received for exports 
0 f -"ole- uranium, copper, diamonds 


The additional investment 
demand lor gold continued to 
dominate the marxer in early 1978. 
at one stage pushing- the price up 
to over 190 U5 dollars per ounce. 
The market is at present more 
stable due to the relatively quiet 
condition; in foreign exchange 
markets, bur the potential exists 
for further Substantial investment 
in gold The continued 
deterioration of the international 


World consumption of gold for 
the manufacture of jewellery 
showed an estimated increase of 
5.0 per cent from 932 metric tons 
in 1976 to 979 metric tons in 
1577. a level comparable with the 
record years of 1970. 1971 and 
197 2. which was achieved in spite 
or a gold price which was. on 
average, over four times that of 
those years. 

it is encouraging to note that 
in countries in which Intergold 
is active in the promotion field, 
rerail sales of gold jewellery rose 
a: a much faster rate in 1976 
and 1977 than in those countries 
in which no work was undertaken. 


The average price received by 
gold mines in J977 was estimated 
at P.4 022 per kg<USSH4per 
fine ounce) compared with 
R3 336 per kg I US 51 19 per fine 
ounce) in 1976. an increase of 
20.6 per cent. Unfortunately 
working costs on gold mines 
continued to escalate at a faster 
rate than the gold price. In 
the last four years the costs per 
ton milled have increased by 

25.4 per cent. 26.8 per cent, 

15.5 per cent and 23,7 percent 
respectively or by more than 
100 per cent in total. The 
consequence has been that over 
this period che increase in working 
costs has neutralized the benefit 
of the higher gold price. 


No problem facing the industry 
is more critical than this 
suscsincd dramatic rise in mining 
costs which ha; resulted from 
the high general inflation races, the 
rapid increase in the wage bill, 
and exceptional increases in 
certain administered prices. 


; Fortunately, the urgent need to 
. make full use of the country^ 
manpower potential coincides with 
widespread' acceptance embracing 
all political groupings in 
South Africa that job reservation 
based on racial discrimination 
is longer defensible or practical: 

The Chamber submitted 
detailed evidence to the Wiehahn 
Commission of Enquiry into 
labour legislation and the Riekert 
Commission of Enquiry into 
legislation affecting the 
untilizacion of manpower. In 
company with the rest of private 
enterprise it welcomes these 
urgent enquiries aimed at the 
removal of discrimination in the 
workplace. To meet current and 
projected demands for-skilled 
labour as well as to create the 
required job opportunities for 
the expanding papulation, rapidly 
increasing numbers of non-White 
workers must be absorbed into 
the skilled labour pool. 

The Government has declared 
its belief that all persons have 
an equal right to be trained and 
to qualify for any position. 

This policy should be expressed 
in legislation as soon as possible. 
The education system must be 
geared to meet the demand for 
educated people, and che law 
must be so administered as to 
ensure equal opportunity for 
training and employment of all 
those with the necessary 
educational qualification. The 
urgent needs of the time pose a 
crucial challenge to the State, the 
employer and the trade unions 
who must in concert bring about 
change in a pragmatic and 
non-disruptive manner. 

Despite prevailing restrictions 
the industry has placed 
increasing emphasis on the 

development of existing avenues 
of mining employment open to 
Black workers and seeks a 
progressive increase in the labour 
force permanently housed 
on the mines. 


major concern. The massive ^ newBpandr/Jsy^rio tl 

turnaround in the current <jn him. . i V-*- 

from a substantial deficit in I97j5y Vlfc. Tetfie*, JJ4, who v 



which. has continued . into tw. . ... jRe seeks reinstateHient and ■ctH®-- -r 1 ®'" -Ewaacial - -Tiine 
current year, is hfghTy satisfactory, pensatian and claims .that he w^attacfied.^rificance to 

buethf, was .chlevaddiirin. a ' 'S* 

period of economic recession- - •' newspaper did? ftot 

• .• ... . J t “ad • Aden suggested' jfcst -he t,« 


but this was achieved during a • t e ^3tapSfcS!l5to.Wi 

period of economic recession- - iSoOrES^fH* 5 f£» ttw newspaper did ftot 

surplus on cur™,, uccounr -HI, JJjJStaUU 7: T.ra?s ..afo amertChiS. • 

the economy moves into a more of . the 'main Reasons why —he ■ ni ® ■W®* r 

vigorous growth phase and . brought the/ dispuTtr. into' -.the'- ' r ~ ■ 

Imports start rising accordingly. f 

For- this reason every effort tvtttt t ' ■ ? ’ 

should be made to promote furthe rOreS- ' . '. £ t. . \f? 6 ai‘ 

growth in exports in order to Jt'had been suggestedjhat by/'the .disputes proced 

maintain the current' account arranging! . fpr aiti^l^..-. banned .the- F jpa . hrf ai Times 


. I 

L i'i 


Thr- 

ift's: 

v 


should be made to promote furthe NTJJ roICS- 
growth in exports in order to Jf had been S 

msincain the current account “SSfjyej”* 
surplus for as long as possible. to be published 
bearing in mind that South. Africa he" Was noafing 

cun no longer rely on an . ■ bS{X‘ erfdrac 

accommodating inflow of foreign Norris,- the- : r 
capital to protect its reserves. . orgzMiser.-'.Shov 


can no longer rely on an - tS? JhUL' ****** P®<* ***** WM 

. But tae evidence of Mr:. Robert not willing to epBabb 

accommodating inflow of foreign Norms,- the- union’s, -national' effom to estabhahkuch i 
capital to protect its reserves. organiser,-’ -showed there was ship.'., / •" •* : ?-v, 

nothing in the union's rale book - H e h'ai 'made it'plajn 

THE OUTLOOK uJ£rL' that -memhers was wiHing to nfeet &e 

. nt UUIL.UUK shfifij* not -.make pubfiir state^.the 'officer 

Despite improved prospects Of Publishers AseociatioJV 

• i .... , ... ‘pe® was oemg considered .by: received lesal- adviST* 

acceptable political solutions m the national disputes procedure., attend a meetihg Sr ^ 

Rhodesia and South West Africa, Mr” Tether: said tt -was' nnfi.ii- office. - , r ^'-' * : * i : '• 


I 

r-firv-- 


. ;TVy." 

afe.s.1 


Rhodesia and South West Africa, Mr. Tether- said- it -was' unfair °®c«* .; • . r 

the outlook for Africa is darkened l o suggest' that he tfas trybig -to Tfnrwtwrtiwo v- - 

b, the eppuren, poweriessness SKSSP^aSS^tt.!!; W*-' 


m 






; l w poweriessness iicMng WdfepuTe, Vltbougf by The Financial Tunteiwd 

Of the West to thwart Soviet then he Bad become greatly con- a *. astonishingly.^ ipfl 
inspired programmes of violence, cerned about 'bad fsCLtlf bn - -the. attrttuite M .td the .venue s 

instubilic, ,nd unrest. It is »» «-«V Fiducial Timas. - ■ : SS ^S.i'rfbMjU g^ - 

.... . _ . HIs correspondence with piib- wattwude -uada .... 

realistic to expect that South lie figures at that time would fM '\ hira tonneet -ther editor’: 
AFrlca will continue to be exposed show his strong suspicions that JJ ore ' tnireAsoname'b® 

in the year ahead to international l . he ollimaXe intention ,-w M to temnlSSd dtSiiS® 
i, ... B .. . force him out of- the paper. He ' p *' * l . e ? fusntisstng him- ^ 

hostility, reflected m a continued believed that publiclto wohld' fo: Kusurg:, 

decline in the availability of make it more difficult for the -*“®- nie ! a tmS-.tot)k piafce r whi , ‘ 

foreign capital, mounting pressure paper to " do the dirty” on -him. - H^i^fe^d ^haLlthe'-Fl 
for economic sanctions and „ Wr - Tp ther added: “It* did not Times exploited 

suppers ,or «r»Hs. UCSi.is,. j'™ d 

Against this threatening world ®t*tuj e ' . Mr. Tether said ttLatrtte: 

background. South Africa' needs to threatened ^ 

marshall ib economic resources, worthy motives, to take' steps' to examination 1 in 
The country faces a watershed do whatever I tCasbnablv :«mtd >,* 
in political, economic and social 
development. The key -to future. 


TrV;! 

E*ij 




do whatever' I reasonably 'could he -wai expIoiti7i 
to defeat that threat”.- - . /r for;:hiT.owS pS 

Mr. WUUaxn Wells, Q c. the was! trying r ------ 

tribunal chafitnah,^ asked : ‘What paper .by pi 


3Pf : .i 


prosperity and peace lies in growth l are .t^ e ’ unw orthy motives you and that', tie-' Was' 


m 

i* Ml wl'J J 




MONETARY ROLE OF 
GOLD 

The ra:ifrcarion of the Second 
Amendment to the IMF Articles 
of Asrcement on 31st March, 1978, 
has important implications for 
Sold a; a monetary asset. 

The ratification will enable 


In addition, despite the 
containment of wa;e and salary 
increases in 1977 to between 
5 and 6 per cent, a large number 
of mines have reported that the 
introduction of the eleven-shift 
fortnight has pushed up working 
costs. To maintain production 
many mines had to increase their 
underground labour force and to 
step up overtime payments. 

A; a result the total -wage bill last 
vear increased by 15 per cent. 

Unhappily static or declining 
labour productivity ha; been a 
foarure of recent years. The 
industry has attempted to meet 
this challenge by entering into 


The industry is endeavouring, 
too. to encourage the migratory 
worker to return regularly to 
the job for which he is trained 
and to adopt mining as full-time 
employment. Some success has 
been a c earned in this area and 
there is a greater degree of 
stability within, the 'co'taf labour 
force. 


ud„u„. „ «»« 

needs of all its peoples and to Mr. Tpther:: VTo.'flthfe1&e' -out ..^-^^ aUegalftms: 

enable the country to meet the of- Uw - pappp.: to silence - my'^^^^ ^OcuBieiifs^ 
pressures Hkely to be ' voi 9 e -7 . = i . , ."."“U#' hands^ tU 

ir Descrihin" the '“ Tatefiii davs” 1 - ^ af -the tune/pf 

inimediarelTtefbre hi, dlOTlS a i ;I ^- - V ? • 7 

But South Africa cannot ” r - Tether ' alleged that The- mif! Was pIa,B that 

r h„ its resourCK to the B.S, “ 

advantage while controls on mg that;the final finding of the to : 

prices, labour utilization, che three-a-side * nuttonal disputes - 

. . committee— that the estahff^ foster the impres&io 

monetary system, fore.gn exchange raent of an a ?ceptabI e ^rS 3 : tSorffUgB^ « 

markets, and all other aspects relationship -between the parties ? erson; ' the. i'afift . ; 

of economic life constrain the j was unattainable through ; its prejudice th 

m , efforts'— hari. b‘rauohf“ . tribunal ^ imemlM 

economy. No more urgent task procedure to^n end ' ^ 

faces the nation than to allow full | t was the newspaper’s dutv iirtS^j 1 ® 3 ^ ^ ' ft 
rein for market forces to • w . “™‘- Maa 5 r *-- . 


markets, and all other aspects 
of economic life constrain the 
economy. No more urgent task 
faces the nation than to allow full 
rein for market forces to 
determine the optimum allocation' 
and utilization of all resources, 
to allow greater scope for the 
motivation of economic incentive 


THE SOUTH AFRICAN 
ECONOMY 

At this moment of time the 
South African economy appears to 
have turned the corner at last 
and entered an upward phase of 
the growth cycle. 

The vulnerable position of che 


and utilization of all resources, HOME” CONTRACTS. 

to allow greater scope for the A JUfet ^contract to supply finSi - 

macivscion of MUM* in«nti, t ^ 

and to open the' full benefitsof the by STEWARTS AND LLOynS S^. t itS!SPSV t * : 

The full teste of this addr«s ” ^ 

. . •• . . . ' ■ Cvn- n,'.' n..:..- ? ral ' " . '• ' . "... •.'“St. 


may obtained from the j haS/mSS, t0 J^ e H “ ntin gdon- - 

^ ... . 1 based concern. The notvotCii, ------- - 


General Manager, Tho Mbod Di v&an^ at?* 

Chamber of Mines of South Africa, M? KHS coosSeS SESSriwW^'^HEHEE 

c l, ,. . _ ' m the North-East. West a a -cooffaci 1 ' 

S Hollard Screes, add. North. ■n^ s ' re ^f 0 ™ 1 d,a "'l*. design ; smdiB?m^’' 

Johannesburg. 200 I. - The. bulk- of -the order ic' r«n - In vcDnawfll!? 5 : 

service pipe of between aoinm-'JSf Kr ^PB»se; of^extep^ 
■ and 63mm outside diameter I*}®.-,. 












. t 

Financial Times Wednesday June 2S 1|78 



■xplains* 


CISC! 


sViir a 


•r • 

Tenneco bid leads union 
to seek consultation law 


APPOINTMENTS 


Two new main Board members at Samuel Montagu 


BY ALAN PIKE, LABOUR CORRESPONDENT 


A SfOYTS to 3i ve trade unions a 
H'sal right to consul latino oo 
company takeovers was launched 
yesterday by the Association of 
Scientific, Technical and 
Managerial Staffs in the wake of 
the. Tenneco bid for Albright and 
■Wilson. 

Mr. Hager Lyons, a national 
officer of AST515. said after a 
meeting of union representatives 
from Albright and Wilson plants 
throughout the country that his 
members would be ashing tbe 
AST3I5 parliamentary committee 
to seek legislation which would 
guarantee trade union consulta- 
tion. At present Stock Exchange 
rules inhibited companies from 
providing unions with proper 
information on takeovers, he said. 

The union, which was initially 
hostile to the American group's 


bid for Albright and" Wilson 
agreed to withdraw pressure on 
tbe Government for a reference 
to the Monopolies Commission 
provided Tenneco can give assur- 
ances on the future ?- : of ’ the 
company. 

Unanimous 5 

Mr. Lyons said that-ASTMS 
representatives from .. artl- 12 
Albright and Wilson sites were 
unanimous in their support for 
this course of action. - No-one 
was ** cheering or wildly 
enthusiastic n about the takeover, 
but they had to take account of 
the fact that Tenneco r ready bad 
a substantial bolding "fa the 
British company. 

The Department of Industry is 
awaiting a reply from Tenneco 


Rover dispute man 
fined £50 for theft 


BY OUR OWN CORRESPONDENT 


THE dismissed shop steward at 
the centre of a dispute which 
has halted, production at the 
Rover works at Solihull, 
Warwickshire. costing an 
estimated £30m in lost produc- 
tion and the lay-off of 10,000 
workers appeared in court at 
Solihull yesterday. 

Transport workers' shop 
steward Anthony Robert Tombes, 
aged 41. of ChelinsJey Wood, 
near Birmingham, admitted 
stealing a lax disc for a motor 
car belonging to British 
Lcyland and was fined £50. He 
also admitted six related motor- 
ing offences for which be was 
fined a further £70. 

The company dismissed Mr. 
Tombes after he was stopped by 
police and the 'strike began 
when SO colleagues walked out 
demanding his reinstatement 

Chief Inspector Alan Marriott, 
prosecuting, said that when first 
seen by police the Rover car had 
been displaying a tax disc but 
by the lime it stopped the disc 


was no longer on the -.wind- 
screen. 

After questioning Mr.. Tombes 
produced a tax disc which had 
been reported missing from an 
MG owned by BL on February 19. 

Mr. Roger Richards, defending, 
said that Mr. Tombesr had found 
the (fisc on the grbuntL at the 
Rover factory. Be had intended 
to hand it in but being a busy 
man had overlooked doing so. 

After the hearing Mr. Tpttibes 
said he would be discussing the 
situation with the drivers' com- 
mittee which represents^ the SO 
men who are on unoffirfaTstrike 
over his sacking. - 

He refused to be drawn on 
whether the strike would' con- 
tinue but many of his coQeagues 
who packed tile court Aar the 
hearing ' were adamant that the 
dispute would - go. on. . 

“ I have been victimised. 1 
could name several incidents 
where people - have committed 
more 'serious offences and- not 
been fired,” said Mr* Tombes. 


on a series of undertakings about 
its plans for future control of 
Albright and Wilson. 

These include assurances that 
it will maintain a majority of 
British directors on the board, 
expand employment with special 
regard to regional balances, con- 
sult the Government □□ tbe 
development of the company and 
before disposing of “any signi- 
ficant part of it and consult fully 
with the unions “ including the 
fullest possible sharing of 
information/' 

If satisfactory assurances are 
received unions representing 
Albright and Wilson manual 
workers can be expected to 
follow tbe ASTMS line and with- 
draw from opposition to tbe bid, 
which shareholders are being 
recommended to accept* 


TASS says 
BL car 
output must 
be doubled 

By Philip Bassett, Labour Staff 


Mr. Francis Hamilton and Mr. 
Ian Hendriks have been appointed 
directors of SAMUEL MONTAGU 
AND CO. from July 1. 

* 

Dir. D. M. Lean has become 
chairman of the RUBBER AND 
PLASTICS RESEARCH ASSOCIA- 
TION OF GREAT BRITAIN suc- 
ceeding Mr. P. Falhurly, who id 
taking up residence in Australia. 
* 

' Mr. Tom McGrath has been 
appointed personnel director, and 
Mr. Dong Gllwour development 
director of SMITH BROTHERS 
(WHITEHAVEN) Trom July 1. 
The parent concern is Mardon 
Packaging Inter national. 

He 

Mr. Roger James has been 


appointed a director of COXTACT 
DISPLAYS. He was. previously 
production controller and remains 
responsible for production 
mutters. 

★ 

Dir. Norman Nihloc has been 
appointed managing director of 
COUNTRYSIDE BUILD 

(SOUTHERN), a subsidiary or 
Countryside Properties formed to 
expand private residential housing 
development into the southern 
parts of Greater London. Mr. 
Nibloe has spent M years with 
tile Boris Group Housing Division. 
it 

Mr. R. W. D. Macintosh of 
Monsanto has been elected chair- 
man or the BRITISH SHIPPERS* 
COUNCIL in place or Mr. R. J. C. 
HilL who retire:' on completion 


of h/s three-year term appoint- 
ment. 

it 

Bridon states that Mr. John 
Ashton, previously managing 
director, hu* been appointed chair- 
man or ASHLOW STEEL AND 
ENGLVEERIXG COMPANY, the 
group's major UK emjineerrnq 
subsidiary. In succession to Mr. 
Douglas Smith who remains on 
the Ashlow Board. Mr. C. K. 
Gray, previously technical direc- 
tor, has been made managing 
director. 

* 

Mr. Donald A. Cameron has 
been appointed secretary of the 
ROYAL BANK from July 1. Mr. 
Alexander McAndrew has become 

general manager (administration) 


in place of Dir. Robert jV. Forbes, 
who retires on June 30. 

Mr. M. Nors worthy has been 
appointed to the Board or ANGLO 
SCOTTISH INVESTMENT TRUST. 
* 

Sir Curl Aarvold has been 
formally appointed chairman of 
the KAC at the first meeting of 
its new Board and committee. 
Three years ago. Sir Carl, who is 
also president of the Lawn Tennis 
Association, was elected one of 
the stewards or ihe RAC. motor 
sport's final court of appeal in 
this country. 

Mr. Sidney L. Lesser, a Loudon 
solicitor and chairman of the 
working committee which drew 
up the restructuring proposals, is 
the RAC's new vice-chairman and. 


at Sir Carl's request is acting as 
executive chairman Tor carrying 
out the restructure or the organi- 
sation into three separate com- 
panies covering motoring services, 
llic club houses at Pall Droll and 
Woodcote Park, and motor sport 
activities. 

Sir Carl was Common Serjeant 
of the City of London (1959-64) 
ami the Recorder of London 
(1964-751. 

★ 

Mr. John Mann, a member of 
the British Institute of Manage- 
ment. has been appointed secre- 
tary of the SCHOOLS COUNCIL, 
which supervises the curricula 
and examinations for schools in 
England and Wales. He will lake 
up the £i:>.00n post on October 1. 


Industry ‘must change 
to solve its problems’ 

staff /-•■- 

’• ■' ‘ ' -• : - f ■ ■ 

BRITISH INDUSTRY requires a The aerospace faduspy was 
completely new approach to its •"buoyant andr' f orwanHooking," 
problems,' Mrs. Marie Patterson, she said, with trading profits of 
chairman of the Confederation of £65m. The shipbuilding industry. 
Shipbuilding and Engineering which- was in Its t^eath throes 
Unions, told the: confederation's when the' Government took it 
annual conference at Eastbourne over was only now receiving 
yesterday. i - -constructive proposals. ! 

A shorter working week, in- North Sea oil. was not perhaps 
creased. -leisure and. a secure. as ^ saviour as some had 

wage were necessary. seen'it. -and. its bounty -should 

Mrs;.. Patterson attacked Mrs.. be - UBed constructively. The 
Thatcher's policies towards trade Qf unions was to 

unions." She said the interests of - ■ sure that 1 unemployment 

trade unionists and their famine* flo t groW while the profit of 
would get short shrift , r ^ multmational companies - was 
Thatcher were to .gain control m swelled. Joy the op. 

a ^ woaW be faced - The Government’s recent 

with “a planned campaign of °2 

deliberately staged confrontation cra?5 + W^n ad." Thewind of 

^ZSSlSSFBte ^ ? 

paying for the long period of In-. - Mrs:; Patterson, a. fortnir TUG 
effective r management.; lack of in- president, noted- h e r 
novation and low level of invest-, achievement -a* . tbe woraipn 

ment. Managerial ideas . of president: of the., confederation 
efficiency -for the industry were and warned that the faade mrion 
on stick-and-carrot tines to in- movement must not be guilty or 
crease the- tempo of work. _ “apartheid betw^sen- the sexes.” 


Talks fail in Scottish 
bakers’ pay dispute 


BY NICK- GARNETT. LABOUR STAFF 


A MEETUP J between employers 
and union representatives under 
the auspices of the Advisory, 
Conciliation . and Arbitration. 
.Service yesterday failed to reach 
a solution itf the Scottish bakers 

dispute .which has been affeetihg 
bread 'shppU.es. ■ ^ 

Tbe dispute. which: has resulted 
in a work-to-rnle in . major 
bakeries, in Glasgow and Ayr is 
over -Sunday attendance- bonuses 
and. consolidation of £6 still 
unconsolidated from pay _■ sup- 
plements- . . V. . '-.JL- 

A spokesman Tor tile Scottish 
bakeTv employers said they -bad 
offerer! to consolidate £4 of the 
supplements as feoon^-as..npnnal 
working resumed “fa ,-J ? ■*?*■ 
solidate the remavamg £2 .at ,the 


next ' annual .wage n egotiations. 

.This was in return for extra 
productivity achieved after the 
Spffleis-French bakery closuresi 
and. for .extra flexibility in exist-] 
ing " working agreements. It had 
been; agreed at the. national joint 
committee fop the Scottish bat- 
ing industry.- 

The. employers said, however, 
that at the ACAS meeting union 
representatives insisted that the 
extra, consolidation should be 
applied by the smaller bakeries, 
although" . the. employers had 
already made 1 it clear that the 
offer , applied solely to tbe large 
bakeries. Only Jh‘r these bakeries 
"had -there, been increased pro- 
-ductivit^ id cover .consolidation. 


BL CARS, formerly British Ley- 
land, must more than double its 
annual production if it is to 
avoid “a slow but certain 
death,” the white-collar section 
of the engineering workers* 
union argues in a new blueprint 
for the company's future. 

Tbe plan, drawn up by tbe 
Technical, Administrative and 
Supervisory Section (TASS) of 
the Amalgamated - Union of 
Engineering Workers, calls for 
BL to expand, setting an annual 
target of 1.5m vehicles, with 2m 
vehicles this year. Last year 
650,000 vehicles were produced. 

The union has circulated the 
plan, called Collapse or Growth : 
an Alternative to Edwardes. to 
all unions attending this week's 
conference of the Confederation 
of Shipbuilding and Engineering 
Unions. It will be sent to all 
MPs and presented to Mr, 
Michael Edwardes, BL’s chair- 
man. at the conference in 
Eastbourne todav. 

The confederation will to- 
morrow debate a TASS motion 
on LeylandL 

- TASS, which has 5,000 mem- 
bers in’ BL Caw, sees failure to 
invest as the key to Leyland's 
difficulties. Lack of investment 
in new-xqpdels -has meant that 
BL Cars’ market share has con- 
sistently f^len since 1971. while 
Ford, its major rival, has main- 
tained its share. 

T7ASS considers that BL needs 
investment oF about £L35bn. 
similar to that spent by Volks- 
wagen on modernisation in four 
years and Renault's plans in 
spend £2.47bn in four years. 

The union admits that indus- 
trial . disputes in Leyland have 
harmed sales.. but suggests tbal 
the root causes of disputes in 
i BL would be remedied by an 
immediate return to "genuine 
free collective bargaining." 

It argues that the Speke No. 2 
plant in Liverpool, closed last 
month, should be reopened, pos- 
sibly for specialist cars, and that 
production of greatly sought 
vehicles such as the Land Rover 
dnd Range Rover should be in- 
creased at the Canley plant in 
Coventry. 

' The document describes tbe 
Edwards plan for saving Leyland 
as “a strategy for British 
Inland's slow death." It sees 
as Ihp only Iqng-term solution to 
Leyland’s problems the public 
take-over of Ford of Britain. 
Chrysler UK and Vauxhall. 

Jffr. Ken' Gill. Communist 
general secretary of TASS, said 
the union was convinced BL 
Cars. -could survive and prosper 
through expansion. The union's 
alternatives to the Edwardes 
plan offered expansion, job 
security and a vital contribution 
tor Britain's industrial regenera- 
tion. ' " 


Walk-out hits 
Perkins 

SIXTY WORKERS in the fuel 
Injection department at the 
Perkins diesel engine plant in 
Peterborough went on strike 
yesterday after a colleague was 
disciplined for refusing a 
transfer. They are demanding 
his "reinstatement without loss or 
earnings. 

■=. Production in other areas has 
not been affected, but a dispute 
by maintenance men earlier this 
month lasted for 10 days and 
resulted in more than 3,000 men 
"being laid off far a week. 


Law ‘has not cut recruitment’ 


BY OUR l^BOUR CORRESPONpENT , , 

THERE IS no evidence -.that, said- It found no evidence that 
recent . employment' protection . the- legls&tiimt was- significantly 

, -hue- - . generally -tx Whprft 


ing ofl. new labour,. according: to. people- it- was Primarily because 
a report by the. Fogey , stoates. they- uad increased -productivity 
Institutes pubUsbed.yeste«lay. . or^bad spare capacity. - , ; . '• 
The report - was mmiedisitelx ^Tbe institute . discovered . that 
welcomed by Mr. J^ertjlootb, unfair dismissal provisions of tbe 
'SS&rtuK the most. 

.. the subject Impression -on employers. Their 

legislation, had been gesuDjew cjjie^effectbadbeen to pnepur . 

of : widespread age reforms of disciplinary and 

oPP^nts who aJd ^- P*** . . m(xAme£ , and 

intolerable but dens ,. ra employers:- had. become more 

•&&££*.**&* “ w 

, aioasBSwS!® 


particularly in plants where the 

dismissal rate bad been very 
high; hut no indication that 
managements were being in- 
hibited from taking on new staff 
. when they would otherwise have 
. done so. 

Managements the report said. 
wOre evenly divided over whether 
they believed the employment 
protection legislation had proved 
advantageous lo them. Critics 
said -it had imposed a time- 
consuming burden on companies 
and led to undue protection of 
inadequate employees. Sup- 
porters felt it had made manage- 
ments pay more attention to 
personnel and manpower issues 
and had improved labour 
relations. 


l.C.I. INTERNATIONAL FINANCE LIMITED 
8 percent. Sterling/Deutsche Mark Guaranteed Bonds 1978/86 


S. G. WARBURG & CO. LTD., announce that Bonds in the piincipdl arcoun*.oi 
instalment due on 1st August 1978. The numbers of the Bonds drawn arc as follows : — 


£1,500,000 have been drawn in the presence of a Notary Public for the mandatory redemption 


G 

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306 

316 

326 

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6346 

6359 

6366 

6376 

6386 

6396 

6406 

6416 

6426 

6436 

6446 

6456 

5466 

6476 

648ft 

649ft 

6506 

6516 

6526 

6536 

6546 

6556 

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6576 

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6596 

6606 

6616 

6626 - 

6636 

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6656 

6665 

6676 

6686 

6696 

6706 

6716 

6726 

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6756 

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6776 

6766 

6796 

6806 

6816 

6826 

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6856 

6866 

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-6906 

6915 

6926 

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6976 

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7006 

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7096 

7106 

7116 

7126 

7136 

7146 

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7166 

7176 

7186 

7196 

7206 

7216 

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723ft 

724 ft 

7256 

7265 

7276 

7266 

729ft 

7306 

7316 

7326 

7336 

734 ft 

7356 

7366 

7376 

7366 

731ft 

7406 

741 B 

7426 

7436 

7446 

7456 

7466 

7476 

7436 

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7506 

7516 

7526 

7536 

754 ft 

755ft 

7566 

7576 

75SS 

7596 

7606 

7616 

7626 

7636 

7646 

7656 

7666 

7676 

7fte6 

7616 

7706 

7716 

7726 

7736 

7746 

7756 

7766 

7776 

7786 

779G 

7806 

7816 

7828 

7836 

7846 

7856 

7866 

7876 

7806 

7S96 

7906 

7916 

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7946 

7955 

7966 

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8018 

8026 

8036 

8046 

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8076 

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£096 

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£116 

8126 

8136 

£146 

8156 

8166 

8176 

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£196 

3206 

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8236 

8246 

8256 

8266 

8276 

8286 

8290 

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£376 

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8906 

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8926 

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9006 

9016 

9026 

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9046 

9058 

9066 

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9106 

9116 

9126 

9136 

9146 

91 58 

9166 

9176 

9186 

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9206 

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9256 

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9276 

9266 

9296 

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9396 

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9716 

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9816 

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3856 

9666 

9876 

3886 

95S6 

9906 

9916 

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9936 

9946 

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9976 

99E6 

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10106 10116 10126 10136 101J6 10156 10166 10176 10186 10196 

10206 10216 10226 10236 10246 T0256 1026S 10276 10286 10266 

10306 10316 10326 103j6 103JS 10356 1036S 10376 10386 103B6 

10406 10416 10426 10436 1CM45 1<U5B 104*6 10476 10466 10446 

10506 10516 10526 10536 10546 10556 10566 10576 10566 105i6 

106DB 106 16 10626 10636 10646 10656 70666 1D67S 10686 106 86 

10706 10716 10726 10736 107J6 10756 10766 10776 10786 10746 

10806 10816 1 0826 10E36 1O0J6 12866 1086S 10876 10886 10E96 

10906 10916 10326 10DJ6 10946 10956 1096S 10976 10986 10696 

11006 11016 11026 11026 11046 11056 11066 11076 11086 11096 

11106 11116 T1126 11136 11146 11155 11166 11176 111S6 11196 

11206 11216 11226 11236 11246 11256 11266 11276 11286 11296 

11306 11316 11326 11336 11346 11356 11366 11376 11386 11396 

11406 11416 11426 11436 1U46 11456 11466 11476 11486 11496 

11506 11516 11526 11536 11546 11556 1156b 11576 J15S6 17536 

11606 11616 11626 11636 11646 11656 11666 11676 116E6 116*6 

11706 17716 11726 11736 11746 11756 11760 11776 11766 11796 

118D6 11816 11826 11S35 11846 11856 11866 11876 11B86 11896 

11906 11916 11926 11936 11946 11356 11966 11976 1JS3G 11396 

12006 72016 12026 12036 12046 12056 12066 12076 12066 inO'iG 

12106 1 2118 1 2126 1 2136 1 2M6 V2156 12166 12176 12186 121^6 

12206 12216 12226 12236 12246 12256 12266 12276 12286 1229« 

12306 12316 12326 12336 12346 12356 12366 12376 12386 12396 

12406 12416 12426 12436 12446 12456 12466 12476 124B6 13496 

12506 12516 12526 12536 12546 12556 12566 12576 1268S 12596 

12606 12016 12626 12636 12646 12656 12666 12676 12686 12696 

12706 12716 12726 12736 12746 12756 12766 12778 12786 12796 

12806 12816 12826 12836 12646 12366 12866 12876 12886 12896 

12906 12916 12926 129 36 12946 12956 12966 72976 12986 12996 

13006 13016 13026 13036 12046 13Q5B 13066 13076 13086 13096 

13106 13116 13126 13136 13146 13166 13166 13170 13186 13196 

13206 13216 13226 15236 13346 13256 13266 13276 13286 13296 

13306 13316 13326 13326 13346 13356 13366 13376 13386 133*6 

13406 13476 73426 13436 13-*46 13456 13466 13476 13486 1->4*6 

13506 13516 13526 13536 13546 13556 13566 13576 13586 135*6 

13606 13616 13626 13636 13646 12656 13666 12676 13686 13696 

13706 13716 13726 13736 13746 13756 13766 13776 13786 13796 

13806 1 381S 13826 13336 138-16 13356 13866 13876 73SE6 138*6 


13906 13916 13926 13936 13946 13956 13966 

14006 14016 14026 14036 14046 U056 14066 


13376 13966 13596- 

14076 14086 14096 


14106 14116 14126 14136 14146 14156 141B6 14176 1JTqs 

14206 14216 14226 14236 14240 14256 14266 14276 14286 14->*f. 

74306 14376 74J26 jjjjti U3J6 74J56 U366 M37S I43S6 14396 

14406 14416 14426 14426 144J6 14456 14466 14476 14486 14456 

14606 14516 14526 TJS36 14546 14556 14566 14570 14586 14596 


74616 14626 14636 14646 14656 14656 


14686 14690 


14706 14716 14726 11736 14745 U756 14766 14776 147S6 14796 

USB06 14816 14326 T4836 U046 T4B56 14666 14S76 U886 14fc96 

14906 14916 14926 14936 14946 14956 14966 14976 149S6 14996 


150M 
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1 5906 

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16406 
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1 8206 
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11*106 
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19706 
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20806 
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21006 
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21206 
21306 
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22406 
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24008 
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25105 
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28006 
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28406 
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26606 
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28806 
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29006 
29106 
29206 
29306 
29406 
29500 
23606 
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1 601 6 
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18316 
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16616 
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1*316 
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20016 
20116 
20216 
20J16 
20416 
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20916 
21016 
21116 
21216 
21 310 
21416 
21516 
2161K 
21716 
21816 
21916 
22016 
22116 
2221ft 
22316 
22416 
22516 
22616 
22-M6 
22876 
22916 
23016 
23116 
23216 
23316 
23416 
23516 
23616 
22716 
2381 fi 
23916 
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24116 
24216 
2431ft 
24J1p 
24516 
24615 
24710 
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25216 
25316 

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25516 
256 7 C 
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25916 
26016 
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2641% 
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27016 
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27316 
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2531 6 
28416 
2851 6 
28616 
2871 6 
28316 
2891ft 
29016 
29116 
29210 
293T6 
29436 
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29616 
29716 
29S16 
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15025 
15126 
7 51*26 
15320 
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7652*3 
15626 
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1552b 
1602 ft 
16126 
16226 
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16426 
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16636 
1 6726 
1682ft 
16926 
17020 
17126 
17226 
17326 
17426 
17526 
7 7626 
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1 7526 
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1 SI 2ft 
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1842ft 
18526 
18626 
18726 
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18926 
19026 
19126 
19226 
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10426 
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1 982b 
11926 
20026 
20126 
20226 
20326 
20426 
20526 
20626 
20726 
20826 
20926 
21026 
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21226 
31326 
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2152ft 
21626 
21726 
21826 
21316 
2202ft 
22126 
22226 
22326 
22426 
22526 
22626 
22726 
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22926 
23026 
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23226 
23326 
23426 
23526 
2362b 
2372ft 
23826 
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24026 
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24326 
24426 
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2J626 
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2J32ft 
2-1926 
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25126 
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254 2ft 

25526 
25625 
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26026 
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2 632ft 
204 26 
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2072S 
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2692ft 
27026 
27126 
27226 
27326 
27426 
27526 
27626 
27726 
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28626 
2S726 
2SS26 
28926 
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29126 
1*»220 
23326 
29426 
2952ft 
23625 
29726 
29826 
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15036 

15126 

15236 

15336 

15436 

15535 

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15936 

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1 1 1 46 

1623ft 

16236 

16436 

1653ft 

16636 

16736 

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16936 

1 7036 

17136 

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1743ft 

17536 

1 7636 

1773ft 

17326 

1 733ft 

13036 

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1S43C 

18536 

18636 

18736 

16836 

18936 

19030 

191 36 

19236 

19336 

19436 

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1*736 

1 0c36 

1S91.6 

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201 3G 

202 3H 

2033b 

20436 

20526 

20636 

20736 

20836 

20936 

2103ft 

21136 

21236 

21336 

21436 

2153ft 

21636 

2I73S 

21830 

21936 

22036 

22136 

22236 

22326 

22426 

2253b 

2263ft 

22736 

22836 

22936 

2303ft 

23136 

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23336 

23436 

23536 

23636 

23736 

23836 

23938 

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24236 

24235 

24436 

24526 

24636 

24 736 

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25036 

25136 

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25436 

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2563ft 

25736 

25036 

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26036 

26136 

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26436 

26536 

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26736 

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26936 

27036 

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27436 

27536 

27636 

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28736 

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28936 

2*036 

29136 

29236 

29336 

29436 

29536 

1*9630 

29736 

29836 

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15046 
15Uft 
1524ft 
15346 
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1554ft 
15646 
157C6 
1584ft 
1594ft 
1604ft 
16146 
1624 ft 
16?Jfi 
16446 
1654ft 
1604 ft 
1 67 Je. 
16840 
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7 7046 
1714ft 
1724ft 
1734b 
17446 
17546 
176J6 
1774ft 
17SJ6 
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1£14ft 
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1334 5 
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18546 
1864ft 
18746 
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18946 
1904ft 
19148 
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1944ft 
19546 
1964ft 
19746 
198 -Ift 
1*946 
20045 
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20346 
20446 
20546 
20646 
20746 
20848 
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21048 
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21246 
21346 
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22746 
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22946 
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23246 
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23746 
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23946 
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24246 
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2454ft 
2464 6 
24746 
2484 ft 
24946 
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2524ft 

25346 

2544ft 

25546 

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25746 

25846 

2594ft 

2604ft 

25146 
26246 
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2644ft 
265J6 
2664 ft 
26746 
26846 
26940 
27046 

27146 

2724ft 

27346 
2744ft 
27546 
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2774 ft 
2784ft 
27S4«i 
2804 ft 
28146 
26246 
28346 
28446 
2854 ft 
2664ft 
25746 

2SE46 

28946 

29046 

29146 

29246 

29346 

26446 

29546 

29646 

29740 

29646 

29946 


15056 
15156 
15256 
15256 
15456 
15556 
1 5656 
15756 
15E56 
15956 
16056 
16156 
16256 
16356 
16456 
16556 
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1 6756 
1 6856 
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17056 
17156 
17256 
17356 
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17656 
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1'356 
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1S056 
18156 
18256 
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1 £456 
7 8556 
18656 
18756 
18855 
18956 
19056 
1*156 
19256 
19356 
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13556 
1*656 
19756 
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1 9956 
20056 
20156 
2025ft 
20356 
20*56 
20556 
20656 
10756 
20E56 
20956 
21056 
21158 
21256 
21356 
21455 
21556 
21656 
21756 
21356 
21956 
2305ft 
22156 
22256 
22356 
22456 
2255b 
22656 
22756 
22056 
22956 
23056 
23156 
23268 
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23J56 
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24056 
24156 
24250 
2JJ56 
244*6 
2J 566 
24656 
24756 

2 J856 
24*56 
25056 
25156 
25256 

25355 
254 56 

25556 

25555 
2575ft 

25556 
25956 
26056 
26156 
26256 
26356 
26456 
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2-650 
267 5G 
2£?£S 
26950 
270f6 
27156 
27256 
27356 
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27556 
27666 
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27356 
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28056 
2S15S 
2825ft 
23356 
29456 
28556 
2 5ft 5ft 
28750 
28856 
26956 
29056 
2*7 56 
29256 
29356 
2945ft 
29556 
29656 
2976ft 
29S56 
29556 


15066 
1516S 
1526ft 
15266 
15-fOft 
1556 ft 
1 5606 
1576ft 
15566 
15966 
16066 
1616b 
16266 
76366 
16466 
1656ft 
16666 
16766 
16S56 
16966 
1706ft 
1 71 66 
17266 
17266 
17466 
17566 
17668 
17766 
77866 
179&6 
13066 
18166 
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18366 
18J66 
19566 
1S666 
18766 
18866 
1896b 
1906ft 
1916ft 
1 9266 
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19466 
19566 
19666 
1976ft 
18666 
13966 
20066 
201 fad 

202ftb 
20363 
2046b 
20563 
2O60G 
2076b 
20866 
20963 
21066 
21166 
21268 
21366 
21466 
21 56ft 
21666 
21766 
21866 
21966 
22063 
2216ft 
22266 
22 3t 6 
22466 
22566 
22666 
22766 
22866 
22966 
23066 
23166 
23266 
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23466 
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23966 
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24166 
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24466 
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24766 
24866 
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25866 
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26066 
26166 
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26700 
26866 
26966 
27066 
27160 
27266 
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27466 
27566 
27666 
27766 
27666 
27966 
28066 
28166 
26266 
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2S466 
28566 
28666 
2S766 
2-9806 
26966 
2906ft 
291 66 
39266 
29366 
29466 
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29766 
29566 
29966 


15076 

1517b 

15276 

15376 

15476 

15516 

15676 

1577ft 

15276 

15976 

16076 

16176 

16276 

16376 

16476 

16576 

16676 

16776 

16876 

16976 

17076 

17176 

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1 7376 

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17976 

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16176 

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18476 

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1E676 

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18976 

19076 

19176 

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19376 

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1957b 

19676 

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1557ft 

19976 

20076 

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20576 

20676 

20776 

20876 

20978 

21076 

21176 

2127B 

21376 

21476 

21576 

21676 

21776 

21876 

21976 

22076 

22176 

2227b 

22376 

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22778 

22876 

22976 

23076 

23176 

23278 

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23476 

23578 

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23776 

23876 

23976 

24076 

24176 

24276 

24376 

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24676 

24776 

24876 

24976 

25076 

251 7ft 

25276 

25376 

25476 

25576 

25676 

25776 

25876 

25976 

26076 

261 76 

26276 

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26576 

26676 

26776 

26876 

26976 

27076 

27176 

27276 

27376 

27476 

27576 

27676 

27776 

27376 

27976 

28076 

281 7S 

23276 

28376 

26476 

26576 

28676 

28776 

28876 

28976 

29076 

2*176 

29276 

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294 76 

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29676 

29776 

29876 

29976 


15066 
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15286 
15386 
15466 
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15G86 
15786 
158S6 
15986 
I 0 OS 6 
16186 
16236 
1 6386 
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16566 
16636 
16786 
16366 
16986 
17086 
17186 
17266 
17386 
17486 
17586 
17&S6 
17786 
17886 
17986 
18086 
18186 
18286 
18386 

18486 

18586 
18686 
18786 
18886 
18986 
1508ft 
19186 
19286 
1*386 
1*486 
19586 
1 96CS 
1978b 
19866 
19986 
20086 
20186 
20266 
20386 
2048ft 
20586 
20636 
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208B6 
20996 
21086 
21186 
21288 
21386 
21486 
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21 766 
21 BBC 
21966 
22086 
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22286 
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22486 
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226e6 

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22888 
229S6 
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231 ee 
23266 
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23468 
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2398G 
24088 
24188 
24286 
24386 
24486 
24586 
24666 
24786 
24886 
24986 
26086 
25186 
25286 
25386 
254BS 
25586 
25608 
25788 
25886 
259S6 
26086 
261E6 
2G2SB 
2638ft 
2648ft 
26586 
2E6E6 
26786 
26885 
26986 
2708ft 
27186 
27286 
27386 
27486 
27586 
27686 
277e6 
27886 
27986 
28086 
23186 
282B6 
28366 
28486 
2858ft 
28686 
26786 
28886 
28966 
29036 
29186 
29286 
20366 
29466 
26586 
29686 
29786 
29886 
29986 


15096 

15196 

15296 

15396 

15496 

15596 

15696 

15796 

15896 

15996 

16096 

1 61 96 

16296 

16396 

16496 

16596 

16696 

16796 

16896 

16996 

17096 

17196 

17296 

17396 

17496 

17596 

17696 

17796 

17896 

17996 

18096 

181 96 

18296 

18396 

18496 

16596 

.18696 

18796 

18896 

18996 

19096 

191 96 

192*6 

19396 

19496 

19596 

19696 

19796 

19096 

19996 

20096 

20196 

20296 

20396 

20496 

20596 

20696 

20796 

20896 

20996 

21096 

21196 

21296 

21396 

21496 

21596 

21696 

21798 

21896 

21996 

22096 

22196 

22296 

2239ft 

22496 

22596 

22696 

22796 

2269ft 

22990 

23096 

23198 

23296 

23396 

23496 

23698 

23696 

23796 

23896 

23998 

24098 

24196 

24298 

24398 

24496 

24596 

24696 

247S6 

24896 

24996 

25098 

25198 

25296 

25396 

25496 

25596 

25696 

25796 

25896 

25996 

26096 

26198 

2629ft 

26396 

26496 

2S506 

26696 

26796 

26896 

26996 

27096 

27196 

2729ft 

27396 

2749ft 

27596 

27696 

2779ft 

27896 

27996 

28096 

2819ft 

28296 

2839G 

20496 

28596 

2869G 

28796 

28896 

28996 

2900ft 

29196 

29296 

29396 

20496 

23596 

29696 

29796 

29896 

2999ft 


Tho following Bonds drawn for redemption on 1st August. 1977 have nor yet been presented for payment : — 

654, 9234, 11024, 12094, 12104, 13764, 19084, 23864. 26164. 

Holders of the remaining outstanding Bonds are reminded that, in accordance with the Notice of Early Redemption published on 12th June. 1978. the Company 
has elected to redeem afl such Bonds at 1 01 i- per cent, of the principal amount thereof on 1 st August, 1 978. 

Payments of principal and pientium [if applicable) in respect of Bonds to be redeemed on 1st August, 197 Band payments of interest in respect of coupons maturing on that date will 
be made against surrender of the relevjn; Bonds and coupons on and afler Isl August. 1978 al the office of: — 

S- G. WARBURG & CO. LTD- r 30 Gresham Street London EC2P 2EB 

Or at Ihf office of one of ihe oirter Paying Aycms specified on jhc re-.erse of the Bonds. Inicrc:.! on such Bonds will cease to accrue Jrom fsi August, 1'37S. Bonds should be presented for 
redemption together wilh all untnaiured coupons, failing which ihe lace value o! rmssmg unmanned coupons will be deducted from ihe sum due lor payment. 

Payments of principal and premium fif applicable) in respect of Bonds lo be redeemed on Isr August. 197E and payment of inferos! in respect of coupons maturing on lhat date will 
be made <n Snarling unless ihe opiion loroueive Deutsche Mails ai ihciixod rale oi DM B.26-17 lo Li is evercised on or boforc ISlh July, 1978, In order lo exercise such option ihe relevant 
Bonds or coupons musi be deposited on oi before 1 8th July, 1 97$. wilh ihe Paying Agent from whom paymani is required together with wmion instructions ihai ihe payment is ro be made in 
Deutsche Mark. 

Holders are advised that ii w ould be prejudicial tg them not lo eleciio receive Deutsche Mark, 

23th June, T9 78 s - G - WARBURG & CO. LTD. 

As Principal Paying Agent 



12 


Effiancial ’Titiies Wednesday Jane-2Sil97S'' 


PARLIAMENT AND POLITICS 


Foot warned on Labour Disabled Tories positive on race 


unrest over top pay 


exempted relations, says Whitelaw 

from £50 BY RUPERT -CORNWELL, LOBBY ST AW ‘ 


BY JOHN HUNT, Parliamentary Correspondent 


THERE WERE clear signs in the f 
Commons yesterday that the 
Government will face severe 
trouble from its own back- 
benches If it tries to implement 
the Boyle Committee proposal 
that the general level of salaries 
for chairmen of nationalised 
industries should be raised to 
£40.000. 

The reticence of Hr. Michael 
Foot, Leader of the House, k 
unde rlined the Government's *■ 
embarrassment over the recom- 
mendation, which comes at a 
crucial stage in the negotiation 
of a new pay agreement with the 
unions. 

Mr. Foot who was taking 
questions to the Prime Minister 
in the absence of Mr. Callaghan, 
was given an ominous warning 
from Mr. John Evans (Lab. 
Newton), an AUEW-spon sored 
member. 

Mr. Evans said that the Leader 
of the House should make it 
clear to the Prime Minister “ that 
many of us on this side of the 
House are concerned at the sug- 



scheme would create tax-free 
havens on Clydeside and Mersey- 
side. where there would be 
little protection for workers. It gy * 

would increase deprivation and 
create lawless ghettoes where 
workers would have little pro- OVER 


car tax 


By hror Owen, Parliamentary 
Staff 


HR. WILLIAM WHITELAW, 
Conservative home affairs spokes- 
man, reiterated last . night that 
his party would not adopt the 
-enforced repatriation of. imml? 
- grants under its new tougher 
programme unveiled last April. 

* The Tory deputy leader ilso 
flatly denied reports that, once 
car in government, .tne conservatives 


Mr. John Evans 


Mr. Peter Bottomley 


worsens wouia nave utue pro- OVER 100,000 disabled car in government, the Conservatives 
^ ecti .£?- ,x 2 l concern- owners in receipt of mob 11 tty would seek to Introduce Identity 
mg their health and job security, allowance win no longer have to cards as a means . of checking. 

_ u this, idea is typical of the pay the £50 Road Fund licence illegal immigration-" [There te 
Tory think-tank, isnt it clear fee as a" result of a tax concession not one shred of truth in this 

that it has become rather announced by the 'Government allegation,'’ he told a Bow Group 

septic? he demanded. Ia<t- night meeting fn London last night - r . 

GnSrey’s’pnp^ £d 22e S £ Sheldon, FinancUl The propo^ whi^ vriR be h 

a particularly ^prasite moment £**”*“7 10 the Treasury, told key part of the Ccuumtim 

For Mr Peter Waiirar the fnm,#, tbe Commbns Standing Commit- manifesto 1 for the nevt general • 

urban areas could not be solved This relief, urged by MPs of ^dto “ on these*!* 

by the easy .appdicadon of free- .an parties, will cost the Inland have seen it in post-war 
market forces. Revenue about £3fim a year, ris- years” 

Mr. Walker had said that Prof. to £5m when the mobility _ ‘ ■ « 

Milton Friedman had only to aj^wahee, introduced in July ^ vSSretew’s SSfe testifies Mr« Whitelaw .. „ . attacked updo 

take, a short cab ride from the 187®, is tally phased in. £ iJSSIiTSSSrS - 4 maHctoua stories’ - that 

University of Chicago to see The mobility allowance is now the practicaMiffict of the pro- ' 



The Tory deputy leader con- 
demned the National Front for 
Its immigration policy. The 
Front, he said, was an “anti- 

intellectual, . ant {-democratic 
movement whose sole idea or a 
.policy Is to exacerbate racial 
tension.” 

The Tories would do their 
utmost to reduce support for that 
body, he pledged. 

The target was to provide 
stability in the UK by ending 
substantial new inflows from any 
source. This would secure equal 
treatment tor immigrants under 
Briri8b law, white the entire 
population of the UK could be 
shown that the Government 
knew, through a register of 
dependants, a revised nationality 
law, and an across-.thc-board 

quota system, that there was a 
defined limit to the number of 
those entitled to entry. 

“in this way. we can allay the 
undoubted fears and anxieties 
that there is no prospect of an 
end to tht influx from overseas 
of new people” Mr. Whitelaw 


House are concerned at tne sug- ae House that the Prime Howe, shadow Chancellor, that Mr. Foot thought that this was Mr. Sheldon suggested that the issued by an all-party Select ™ 

gestion that this Government may Minister had promised a state- special “enterprise zones " the. best speech that Mr. Walter conces^ woi^he! p more dis- Committee of MPs at Vert- li-hltii.ij L1 .WrtJui th.t 

implement the Boyle Comm ttee ment beFore the Commons rises should be set up in selected bad made. for some time.-ftll or aWed peop ] e to run a w d minster. • 

report on top peoples pay." for the summer recess. industrial re (dans where con- these matters now seemed to be .-”7 __ , ■ M . the terms of these might -be 

He added: “W-fll you point out Labour backbencher Mr. trols would bf relaxed and free the subject of Intense discussion Projects of find. There * wS be a prominent 

to the Prime Minister that, if Arthur Lewis (Newham NW) enterprise encouraged. in the Tory party and the sooner ““Payment. a^igp^iion a p^inrat - B „ t b ^, th at wc ^ not 

the Government implements this said it was disgusting that top MrRobert Kilrov-SQk (Lab 5*? announced the results tiie JoraM asm ranees fliat. “JJg fSmuST^f -* 0 * he declared - 

renort. there is no chance what- civil servants should eet a 20 , Mr. Itobert KiLroy-h_lIk (Lab, better. under the terms of a new danse But hte topic iooks muen lesa-or „ . u. t»— w— — » 


under the terms of a new danse 


Names of 79 

companies 

‘undesirable’ 


Mr. Foot discreetly replied that of nationalised industries-ati Tam worm > complaining that ana lea 10 a uea faterriew Vt the stert <rf fe£ serviatives seeking to. send all K. ntn tin* in 

he took note of Mr. Evans’s re- without, a murmur from the * Tory varty was including »M. Sar ” coloured people home, Apparently H5*£“* ^ fc “wSJSSt «? 

marks but had nothing to say on Government c0 ^ d ^ ^ th “ e P™ blem ^ “ exjemlsts,” such as Mt. George Mr. Jobn Pardoe (lib North *oEi repatriation, the Conserro. .coming from Transport House. I Alices on 

that particular subject at the This came at a time when the He called on Mr. Foot to Ward of Grunwick on its hst of Cornwall) and Mr. Enoch Powell tives were already committed, tell him again that these are S^CSSSr^iilSSle? n^l!! 

moment Prime Minister had said that he repudiate the Tory proposal for candidates. _ (UU Down S) voted for a Con- under the 1971 Immigration Act; totally untrue." • . . " • I! thfi^StSSSK 

From the Conservative benches, could do nothing to improve MPs* enterprise zones.” which, he The Tones retaliated by shout- aervative amendment which ? n 

Mr. Peter Bottomley (Woolwfch salaries, even though MPs should believed, would make areas like ing the name of Jimmy Reid, tile would hare raised the new • . ■ . 

W) wanted to know how the now be receiving £11,000 a year, Merseyside “ safe havens for former Clydeside Communist, 00,000 limit for tax-free redun- Trkwvr noAIV oAAir rDrvim aoie.y. u imion imvis, irsoe 

Prime Minister intended to recon- had their wages kept pace with spivs, racketeers, speculators. Who has been selected as dancy payments— embodied in X OXV OtCjLJV wWJCJV X C I. UII 1. • Undersecretary, told the 

cile the Government’s difficulties inflation since 1965. ponces, exploiters and Tory prospective Labour candidate for the Government new clause— to ** . • commons last zugnL 

over pay policy. “The present “If he can do it for the one, crooks.” Dundee East 07,000. Ann AnmtlDC> ... In a written answer, Mr. Davis 

policy runs out in a few weeks’ why doesn't he do it for the “We are having none of it,” Mr. 1 Foot blandly observed - _ ... IJI 1. v llll C^l.H CliiilxlCiJ said 49 of these companies were 

time," he said. “When is the other?” he protested he added— a proposition with that some of Ihe extremists ou ^ / t ' •• - using the word “bank” in their 

Government going to speak on During other exchanges, Mr. which Mr. Foot readily agreed, the Conservative candidates' list Mamv of Crtwvnd names, and most of the 

this matter?” Foot and Labour backbenchers Left-winger Mr. Dennis Cana- could nor be worse than some *£2 P SS’ cm uSZ fee remainder had names thought to 

Once again, Mr. Foot was im- ridiculed a suggestion made the van (Lab-, Stirlingshire W.) of those already sitting on the ff„ r BniiSiSmm- Sir Chilcim Government and its 136 over-similar to those of other 

forthcoming. He merely reminded prevronn day by Sir Geoffrey suggested that the Conservative Conservative benches. SgS BS* 

its original form. were told yesterday by Govern- jwlsoners brought it into dis- **^***. 


on business in this country under 
a name he considered undesir- 
able, Mr. Clinton Davis, Trade 
Undersecretary, told tha 
Commons last night 
In a written answer, Mr. Davis 
said 49 of these companies were 
using the word “ bank ” in their 
wynuho, and most of the 


GEC strikers 
face dismissal 


MPs’ catering halted 
by three-hour strike eSJSL* 


COra^RST^onsWlm at Uy thr PP_ll01ir strike 

factory in Coventry were warned ** J HUM! fcJM. LUV 

yesterday that unless they 

resume normal work . next BY RUPERT CORNWELL. LOBBY STAFF 
Monday they will lose their jobs. 

A second warning went to 100 MINISTERS and MPs endured a allowances to make up 
contract engineers, saying they dry and hungry evening last night forfeited days off. 


from a 


it this issue was always taken either ceased operations in this 
into consideration, there would country or have adopted, or are 


clause was auuea. 10 me bui in aero-engines neio m - 

its original form. were told yesterday by Govern- prisoners brought it into dls- 

A!! Tirmolrn-p, m- t«i - - ment’ spokesman. Lord Winter- nqlute with people who believed “Apart from a few cases, 

Ull workers tei^'to^e^Smr^^l S aI^ tott ^™ atheh0 P edthes *™S i,ldemt ^S‘ cy ^ ^ whU * h* 4 , 0 ? pursufii u thfi 

TI'II ivi JE«2Si. J 22 8 SKl* e ^S Vieira ^expressed in the Lords Lord Winterbottom. said that companies receiving notices have 

Bill backed tiaSSSSSK. ^ 0 ^^ issue was always taken either ceased operations in this 

. „~T r. T . SJS. SSJ5L JUS Lord Winterbottom had. Into consideration, -there would country or have adopted, or are 

A BILL designed to give em- _*?!; ' S* 1 *? 4 earlier that the Hamilton ShScgF.fW very few countries with in the process of adopting, names 

ployment rights to those p to Court- ruling that the en3&‘)riiom we cjjqld trade. acceptable to the department” 

working in oil fields on the Con- would be free of tax. Aon ,. ^ ntamei - v ' • ' ’ 

tinental Shelf was given .an on- matter - between Rolls^aijS " 

opposed third reading m the CiinTinrf Limited and the Chitaea GwSSf ; 

Commons yesterday. uuppv/i l ment.” 'olT-' ■ ■ 

hS-ff £&**£ tz pT^JSmSi of the worst 


f‘pe very few countries with in the process of adopting, names 
^whora we could trade. acceptable to the department” 


would not receive their full as caterkig workers at fee Palace Mr. Be rule Prendergast, branch ment Protection. Sex Discnmina- ^ more certaiutv if the leader. Lord Winterbottom said - 

money unless they worthed of Westminster carried out a secretary of fee General and non and Race Relations Acts to fi™™ D f mnno were written “If It were straiffetforwatti, It 

normally from today- three hour Strike to press their Municipal Workers, threatened those working in a foreign sec- j_ to ^ new riMa> Thev tried would not have taken so long.”' 


three hour Strike to press 


the demands were not met In the Contlnetal Shelf. 


Twenty employees in the com- demands for pension rights and further stoppages last night if tor or crossJ)oundary oil field of to pt ,kc» t j xe saport of Mr* Robert Lord Carrington : “Why is it 

puter room have been on strike improved allowances. the demands were not met In the Contmetal Shelf. cant (Lab Stoke Cent! who for not straightforward?" ’.. 

for several weeks over a pay From 0J3O pm. the dispute the Commons, Dr. Reginald eight yeara. has been fighting to Lord Winterbottom pansed, and 

claim. A letter from fee closed bars, restaurants and Bennett, Tory ISP for Fareham pp prevent the riosure of the there w * 1 * Tor y cr ^ es “Answer, 

management told them to accept cafeterias, which normally tern and the catering sub-committee's BJr OlallS Will Shelton steelworks, which effec- answer” Then be said : “Because 

the wage offer or be dismissed, with customers during fee peak chairman, promised discussions to /■ . _ , tively went out of production ^ is a very sensitive subject 

The other group of workers evening period. All functions try to resolve the impasse. nFOtfiCt lOflV last Friday about which large groups of 

walked out on Monday over their were cancelled and no refresh- Underlying the trouble is the J VUJ rl . people have very strong views, 

pay grievance. Today they joined ment was available for con- peculiar system of management MR. JOEL BARNETT, Chief . u ® masted that tome must “Cons deration has been going 

the computer staff in a protest stituents visiting their MPs. of such facilities at Wesmlnster. Secretary to toe Treasury, told j* or ao °° t “ e on and the strong views of this 

picket< of the plant. The 250 strikers have two main The job Is done by MPs them- the Commons last night that the ^eaun aancy payments made to Qo Use will, I hope, accelerate the 

A third group of GEC grievances on which they say selves. And they are /currently Government had received assor- sleelwo " cers tTxm Shelton decision.” 

employees is also demonstrating the committee of MPs which engaged in a protracted dispute ances from British Petroleum esca P e tax Lord Winterbottom piade it 

against what they claim are pay handles catering has refused to with fee Treasury oi£r how the that their investment plans for Mr. Barnett stated that, apart dear feat the. Government's only 
anomalies at the company. They negoiate; the complete lack of - enormous accumulated catering the UK would not be affected by from possibly one or two exqep- role -was the consideration of an 
are 200 foremen and supervisors a pensions scheme and their deficit, now exceeding £lm should proposed acquisitions in Ger- tions, redundancy payments to export licence, without which 


tee of the worst 

"worfias... 


BP plans ‘will 
protect jobs’ 


from all departments who yester- request 
day carried out a one-day 
stoppage over the breakdown in 
their pay talks. f V 


holiday be covered. 


Hestair to cut 
80 jobs 


Owen gives assurance 
on nuclear weapons 


.many and fee Netherlands. steelworkers were unlikely to tbe engines could not leave the 
BP considered that their pro- exceed £16,000. But he assured UK. . . 

posals should protect jobs in this Mr. Cant that through the opera- Th e engines, which were, re- 
country which might otherwise be tion of the “top slicing” pro- turned to Britain for overhaul 
at risk, Mr. Barnett in a vision; payments to married men to 1973, have been held at East 


Commons written answer. 


of up to £19,000 would be free Kilbride since 1974, haying been 
of tax. Should any 'uncertainty declared “black” by unions 
arise after further checking, fee opposed to the Chilean regime. 
Government would put the issue ®* 8 ®® r ®* n * “d Ker- 

beyond doubt at fee report stage rar| l (C) “ k not a very 
of the BUI. SOhd advertisement for our 

p n ' export trade if we deny our 

_Mr. Cant joined wife Other cnKtftmftrs their nmne.rtv nro. 


Mil :_L_ VU T * -p— i , • . - HMI'IWUWI WCVUUB, UJC -J - — 

oU 10 OS Forces sfa'pnpfh Government would put the Issue 5“®™^ *5“^®?“* ^ 

_ ^ Ti—T-Yi -. ivt v BY REGINALD DALE SUCIiglJX beyond doubt at fee report stage rar ^ (G) said; It is not a very 

EIGHTY PRODUCTION workers. by Reginald dale of the BflL good advertisement for our 

staff and senior management BRITAIN IS ready to give new manufacture or acquire nuclear lO MdUlIlSG ra nt other ex £® rt trade if "We deny our 

employed by Hestair. the agn- assurances that it will not use explosive devices.” THE NUMBER of servicemen Is Government ^portera in voting cast0 “ 6I \ tbeir P™Pe*y> ,P» 

cultural machinery manufac- nuclear -weapons against countries France and China are stiU some UkSy to stabilii Dr aSSfee amSdmSt. sumably berause their polities 

turer^ at Peterborough, are to rhat ^ not t, a ve to am, Dr. David way short of giving similar against fee amenamem. are not sufficiently Marxist to 

lose their jobs. Owen. Foreign Secretary, specific undertakings. China’s Minister a Conservative attempt to please fee unions involved. 

The group plans to move frailer Enounced yesterday. & Is simply toat it will Comm^ yeste^?^ ® a fiirt^r proJWon in fee ‘■When is fee , Government 

production to its Leeds factory. _ . . . 77, ... never be the first to jlsp miclMr ?“ iertta y-. . , _ new clause designed to counter going to realise feat they are 

"Hestair manufactures farm Tb® decision follows smular weapon& vvo 8 ? Ve A^ w S.^ * fa H tax avoidance through commute- the Government of this country;; 

en moment in six different undertakings by the U.S. and fee f 876 * 0 318*779 in Apnlthis^ear. tion of Denskm ' rights was the whole country and not iu«rt 


equipment in six different undertakings by the U.S. and fee w * - * ,uua ‘ 
locations and this is being Soviet Union at the United 

reduced to five.” said Mr. Ian Nations special session on dis- "Djll /\n qnnpol 
Ross, the managing director. armament in New York. UU Ap^vai 

— Dr. Owen's assurance, in a 1__. 

UJ%U _ written Commons reply to Mr. Dy pallCHlS 

HOME CONTRACTS David Ginsberg (Lab, Dewsbury), . 


1976 to 318,779 in April this"year. tion of pension " rights 
total strength of fee defeated by 17 votes to 13. 
armed forces frodi 334,519 in 
Dr. Gilbert argued: “ Numbers ' ' ' 

avars- Wives fret 

very important elements.” . 


was fee whole country and not just 
fee lap dog of fee unions?” 


fj- ’,J& 

• 

% SST \ 

; f A 

a, 


■ 

% 



are the ones 
that don 9 t show 



Wives free to campaign 
on Service pay-Mulley 


HOME CONTRACTS David Ginsberg (Lab, Dewsbury), . veiy toiportant elements. . - # -TB -aw • 

usxsf*&£ “ss-tis Mss-as ^ s*ss ysfWMS si — on Service pay-Mulley . 

awarded to HTGROTRf^H nuclear weapons in self-defence, of appealing against compulsory Wnctlon#! „1 nii i 

w2SSK^!? , Bfflf5 fi cSy S “m mQCC p ^S^ t ^f^ BSl bie 

(C Chert- maSS meeting mens yesterday that pressure had 

AcsS^SSR, “^^ ie a a ; «££ in ffi -d™tS'iSL£?4g , S SS ^ James Lamond (Lab.! Old- 

arsjaar yssapj s »u« rie s u sm ,° 0 E ^s aasaffl SH ? P ste ^s w «n.d . Wan „ __ »- « — 

well as associated control eauiiv da not o assess nuclear wenoons -7 n «rr f* 0S PJ““ mass meeting of workers at Mr. Patrick Wall (CL, Haltem- (Lab, Bristol N.W.). suggested 

ment and a free-standing stack w iU be ^less inclined to develop ^Only*^ Descent of thoER We f tlaQ ? ^“^ft’s Yeovil heli- Price) c laime d: “Wives aBege that fee. Problem would not 

78-2 metres high, at Ravenscraig, or acquire thete if they know fee ri^t Of aoSSl did^S “S^ch t °? 8y fe putforward-^t pressure was ont on their arise if fee armed services were 

asgow. ^ ^The^ritish^ unde^k^n" ? ! ° W h P su fl !e * ts so “ ethin 8 running a^^nt^U^fee 2 attend.” Mr. MuUey said he did not 

JAMES DREWITT AND SON has », e u h “U“* rt " clD 3 would is wrong, he raid. pan y over piece-work. Mr- Mulley replied feat fee think the problems would be so 

a £193,000 contract for extension *PPv 10 ail non-nuclear weapon Under his BilL referral to a Last weekend, Westland, which Ministry of. Defence had issued easily resolved.. "One of the 
to the RNU Depot — Phase it states rnrovTai ed they had signed tribunal would be mandatory has been trying to end niece- ■ no such' advice. “ I should like difficulties Is that I am hot at all 

Poole, Dorset. Work has started fee 1908 Nuclear Nan-Prohfera- within three months of a dm is- work at' the factory sent letters to make it dear that service sure -feat the armed forces, at 

and should be finished by turn Treaty or other binding slon. The tribunal procedure to all the workers' threateninE wives- are completely free to the moment are anxious to join 

February, 1979. international commitments not to would also be improved. them wife a km ;«,i sneak in nubile, write to the trade unions,” - 


.ir.B 


TV CMld.il (J piaUI MR. FRED MULLEY, .Defence Press or contact -their MPs. 

m n _ 0 j,; Secretary,- dented in fee Com- “Any anxieties about possible 

mass meeting mms ^ M “ssS^SaM 

- _ , . _ been put on servicemen to stop added ^ ! 

y r hour Staff their wives lobbying Parliament Hr. James Lamond (Lab,, Oid- 

SHOP STEWARDS have called a over pay. ham E.) and Mr. Ron Thomas 

mass meeting of workers at -Mr. Patriek WaD (C, JIaltem- (Lab, Bristol N.W.). suggested 
Westland Aircraft’s Yeovil heli-'Pri®®) claimed: “Wives allege that fee. problem would not 
copter plant today to put forward - feat pressure was put on their arise if fee armed services were 


~ — -™ --- — ------- — “ — . ™ , buuim- hi lub lactory. sent letters xu ubu lu«l ixx= oxia*™ iulwd, 

iron ■ Treaty or other binding slon. The tribunal procedure to all the workers threatening wives- are completely free to the moment are anxious to join 
international commitments not to would also be improved. them wife dismissal speak in public, write to fee trade unions.” ' 


It used to be called shelVabock. Now we know more. We know that there 

are liwilfitfftn^ tn tfip'hn mffn mint?_ 

. SoWiers^Sailor&and Airmen aii risk mental breakdown from over-exposure 

- to death awi violence wIiDst in the service of our Country. Service. ..In 
keeping the peace noJtess than in making war. 

We devote our efforts solely to the welfare of these mot and women from alt 
the ^Services. JJen dud women who have tried to give more than they could. 

- Some* are rally 19, a tew are nearly 90 years of age. 

We help them at home and in hospital. We run our own Convalescent Home. 
For some, we provide work hi a fedtered industry, so that they can live 
without charity; far others, a Veterans' Home where they can see out their 
days in peace. 

These men and women liavc given their minds to their Country. If we are 
to help them, we must have funds. Do please help to repay this V3St debt. It 
is owed by off of os. 

•rtL ey’veglven m ore than they could -— 
please give as much as you can”. 

M€mflLUKLFflK SOCI6TY 

37ThurIoe Street, London SW72LL 01-584 8688. 




3t fh0$6 low fares. [And toNew Orleans without^ changingplanesj 


London-Atlanta, New Orleans Fares. 

lb Atlanta *Ib New Orleans 

Budget or Standby Sin^e fere* .£86.00 — 

APEX (Advance Purchase 

Excursion) Return faret S261X00 £305.00 

22^5 Day Excursion Return fare £307.00 £372i)0 

Regular Economy Single fare £236.00 £256.00 

Regular First Class Single fare £367^0 £398.00 

•Effective Jui>- 2nd wibaert tn Government Approval JEffecttve .Toly 1st 

Fares and schedules subject to change without notice. 


Delta Air lanes Introduces the 
first daily non-stop service between 
London’s Gatwick Airport and Atlanta, 
Georgia, capital of America’s southeast 
Leave London at 12:10pm and arrive in. 
Atlanta at 425pmi in New Orleans at 
' 6:45pm. It’s the only through service to _ 
New Orleans. . 

No other airline can take you to 


Atlantafor less or has easier 
connections to other lLS. cities. For 
reservations, see your Travel Agent, 
or call Delta in London at 01-668 0935, 
in Crawley at 517600. ,. 



Hyto7tiU.S.citi^for<£164 
withDdLtafs Unlimited Travel Fare 

Really tak&lh America ^ witileyou’re yisitmg. One 
additional price covers 76U.S. cities plus the Bahamas, 
Bermuda, Puerto Rico and the UBi Virgin Islands. All for £164 
per person with a minimum of two adults travelling together. 
Advance purchase is required. Naturally, with such a big 
discount, there are other restrietions. CaIl Delta or your 
TraveLAgentfbr details., . 









• y 






When a man buys and runs a car from his own pocket, frantic hunts for service outlets. Leyland’S Supercover is 

he’s the best authority on the value he’s getting for his by way of a free bonus, 

money. Hardly surprising that cars from the 13-model Morrisvahie. 

Moms Marina range are so popular with drivers who Around 50% of Britain’s new-car buyers are spending 

pay their own way. their own money. They look for petrol economy, easy. 

Look what their money buys them. inexpensive servicing and low running costs. They find 

AfiR»dabkstvle;spaceandc(Hnfixt all those values in the Morris name. 

-Marinas come in2-door coup£, 4-door saloon and TOienitS your money you’re investing, its a Moms 

estate stylings. There’s a good choice of price and of ever y t 11116 - 

engine-size. But all Marinas are extremely roomy, well- 

appointed cars that cope equally well with a grown or „ _ . . — 

a cimnrtinstnnnrasummerholidav. ^ MOVnS 

— ----- • , . With Supercover. 

A Marina’s dependable. No teething troubles, no liavpn^t lost OH 1" SPVIS6 ofvslllCSi 

over-elaborate engineering, no over-priced spares and no naYCII 1 AJEll UU1 U1 YOiuva. 

''■yyy Marina prices from £2537.73 including car tax, VAT and front seat belts. Delivery and number plates extra. 


^ -Marinas come in 2-door coup6, 4-door saloon and 
estate stylings. There’s a good choice of price and of 
engine-size. But.all Marinas are extremely roomy, weU- 
appointed cars that cope equaUy weU with a grown or 
growing family, a shopping trip or a summer holiday. 
And aU Marinas have the clean, classic Morris styling. 















If 


SITED BY ARTHUR BEHNETTAHD TS SCHDETBtS 


• COMPONENTS 

High rise windo ws 
made safer 



M.h 




Gauges tiny currents 

TO MAKE USE of the abilities -is the fact that It h» resistance 
of modem semiconductor car- andintroduces a drop ip 

cults otter components involved the. circuit- under test* disturbing 
need ' to. have coBunensmatB its ■! performance^.. .In the model 

m 1 AmifuMAW . MA nUlt M Ul M Ml 


Teletrater 

POCKET 

PAGING 

For Industry 

Instant MBf J?, c . r « a5ed 
Contact /TgJ Efficiency 

Cass Electronics Limited , 
nwcl3b3tv.B2SS tarinfnrtnsticn 


A NEW safety catch could 
dramatically cut the number of 
deaths caused by falls from the 
windows of high-rise blocks. The 
new catch, which can be fitted 
simply and cheaply to existing 
window frames, is the brainchild 
of Ted Langston, managing 
director of Monk Metal Windows 
of Hansons Bridge Road, Erding* 
ton, Birmingham, a subsidiary 
of Thom Lighting, it will be a 
boon to young mothers and old 
people, since children are 
particularly at risk. 

The new catch allows swivel 
windows to be opened in the 
normal way to a gap of four 
Inches, but they can only be fully 
opened, for cleaning, by use of 
a special key. Once the catch has 
been unlocY.ed to allow the 
window to be swung folly round, 
the key cannot be removed from 
the lock. The safety catch auto- 
matically engages and locks in 
the safe position when the 
window is pushed back, and the 
key can then be removed. 

The new safety catch was 
developed following an approach 
to Thom by the Department of 
the Environment in December 
1977. 


Mon k M etal Window's safety 
catch provides local councils with 
a reasonably cheap and quick 
means of making the .windows in 
high-rise flats safe the company 
asserts. Unit cost .of the catches 
is around £3.70, although it will 
vary a little according to the 
type of surround into which the 
window Is fitted, and fixing 
an average 20 minutes per 
window. 

A similar catch which can be 
fitted to side-hung windows la 
under development. • 

Although the safety catch is 
primarily Intended for instal- 
lation by councils in hi g h-i i se 
flats, it will also be of value to 
the private householder, for use 
on bedroom windows for example. 
An additional advantage for the 
householder is that windows 
fitted with the catch can be 
safely left ajar while the owner 
is OUL 

Initially, priority for these 
catches will be given to local 
authorities, although they should 
be available for householders 
early in 1979. 

Thom Lighting, Thom House, 
Upper St. Martin’s Lane. London 
WC2H 9ED. 01-836 2444. 





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V 


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■ft. . r 




", „ ‘ )~vi ' ' * ] 
- JHU tV‘ :: - I 


has to be kept down. ” /. ; a>^<> to standi a transient' 

. To check such minute cg'-.,a^jgl p oyerload of 1.000 volts 
rents, Kelthley Instmments ■ ‘fotithree seconds, the meter has 
introduced the model 4&Qp&& SS&spjay settling time of about 
ammeter which has, seven tangy . SS T S^nd. ovarrange Indication 
between 1 nanoamp and 1-miUfe 5*5- ...normal node rejection 
amp. -Readings a re present ed i of 60 to 70 dB. Measuring 

taFSim f^dSSs. ... Boulton Road, Reading RG2 

aSficttHy with any ammetdr* SN1 (0734 861387). 

' \&K- m ■■ 

Close check ^ fuel use 

THOSE needing to make accurate 'J ^b running engine. On .inffia- 
measuremehts of the specific, foci tionof.ihe test run, fuel is fed 
consumption of diesel or petrol, .o&ly from the cylinder; a pre»> 
pn gfaiM will be interested In rite Sure reading Is automatically 
FM3A system developed by Hint 'Taken by the deotraxlcs unit and 
Brown Sastnnnattaiion cdr^Qadng (pre-set) . Is started. 
Bolton- ' -/ another pressure wedliog at the. 

Fundamental measuring cora^ dhd of the elapsed time gives the 
ponent is a vertical fuel measur- foiel used. 

SLrtJ ' ftS - -lha control unit ate* takas in 

ifriSSPSiJrfnSt* ttS ~*pm *>ta teom » hotbed wheel 

SHEM! *SS 

change. . ' More from the -company- at 

The system first of aD fills the Lever Street, Bolton BL3 6BJ 
tube at the same time feeding. Lancs (0204 273X1). 


t CONFERENCES 

Intensive 
micro day 

INTEL is planning one-day 
seminars on very high per- 
formance microcomputers next 
month, in Glasgow, Manchester 
and London. Venues will be the 
Albany Hotel, Piccadilly Hotel 
and the Cavendish Conference 
Centre respectively and the 
dates are July 10,12 and 14. 

Most of the time will be spent 
on the new 8086 16 -bit device 
and the company stresses that 
the seminars will be intensive 
— they are aimed at engineers 
and the technical content will be 
Ugh. 

Documentation will indude 
complete design Information for 
the 8086 including instruction 
set and Interface details. 

-Tickets -at £13.59 from Intel 
Corporation (UK), 4, Between 
Towns Road, Oxford 0X4 3NB, 


Keeps heat controlled 


Final boring of the whitemetal lining of a large bush bearing at the new factory of Hlchell 
Bearings, Newcastle upon Tyne. A new quarter-mile long factory and a.£4im redevelopment 
scheme has given Hlchell Bearings, a Vickers operation, at Newcastle upon Tyne, greatly 
improved capacity and production capability for its specialised products. 


MATERIALS 


TWO FURTHER devices aimed 
at improving the control of heat- 
based processes have come on to 
the market, from Torvac, of 
Histon, and Controls and Auto- 
mation, of Hitchin. 

Loads up to 3 kW can be 
switched/controlled directly 
using the latter’s model 6103 
which is Intended for use by 
machinery manufacturers. It is 
available to order in various 
temperature ranges from 0 to 
1600 deg. C and has a pins or 
minus 1 per cent accuracy under 
steady load conditions. 

For panel mounting with a 
DIN 48 mm bezel, the unit uses 
proportional control to avoid 
temperature “hunting." More on 
0462 56391. 

Torvac. the high vacuum 
engineering company, is offering 
more subtle control of the 
vacuum furnaces used by metal- 


lurgists with its Torvac/Euro- 
therxn unit, intended for use with 
its 7801 programmer. 

It gets over the problem of 
dealing with the difference 
between the process tempera- 
ture and the actual control tem- 
perature. 

In the rise part of the cycle 
the control thermocouple leads, 
demanding power to meet the 
pre-set rate of rise. When the 
work temperature catches up, the 
subsequent dwell is controlled by 
a thermocouple on the work. 
After the dwell the programmer 
will move to a farther rise or fall 
condition with the control 
thermocouple again leading. 
More on 022023 2646. 


• By agreement between Hie 
Financial Times and the BBC, 
information from The Technical 
Page is aoailabte for use by the 
Corporation's External Services 
as source material for its over- 
seas broadcasts. 


Controlling 
by air 
pressure 

A PNEUMATIC sequence con- 
troller from Pneumethods of 
Cumbria has the advantage that 
it can be widely applied and 


installed by technicians who need 
not be too ■ familiar with pneu- 
matic circuit design. 

The makers also claim that a 
typical installation will Incur 
only about half the cost of the 
equivalent electrical system. 
Furthermore, whereas most pro- 
cess control sequence systems 
need the attention of both elec- 
trical and mechanical staff, the 
purely pneumatic system needs 
no electrical work. Such equip- 
ment is also intrinsically safe. 

PSC-177 is a self-contained 
pneumatic block produced as a 
rack module for . chassis or 
machine mounting and can have 
six, eight or 10 stages. Air 
pressures up to 120 psi can be 
used. 

Each of the stages has input 
and output lines; an input to 
stage one gives an output to 
controlled device number • one 
which .feeds a signal back to 
the block to form the input to 
stage two, and so on. Delays 
can be Introduced, also pneu- 
matically, at the activated devices 
it necessary. The block measures 
8 by 3 by 1| Ins. 

More from PO Box 3; Cumbria, 
CA14 2BD (0900 5303). 


• WATER SUPPLY 

Reduces the bills 


— . This particular kiln was 

UD -designed for 3. E- Heath, of 

upvvUiS U F :• Burslem, and takes two cars each 
il c? • ' ' holding 3,000 cups. Reaching 

the nnilff * - r W flegrees.C in sfa : hours, it 

“Jo . . • shows gas savings of 45 per cent 

THOUGHPUT of a traditional compared with its predecessor, 
brick kiln for firing unglazed More on 051 334 4030. 
pottery has been nearly trebleC'- 
in a new design ' -oy D1S — . ‘ - 

Refractories that employs Triton. I YICTO TIT UCD 
Kaowool from Moiganfl» 1 llj ldlH UdC 
Ceramic Fibres* a material with ^ # % 

low thermal mass and ereom.LreTVTlTlOTIlG 
tional tolerance to therrriSrJfifl 1 1 il l I dICa 

• - '• r EASY use in kitchens, 

^thfe matorial is^ Aopflttiug. as buffet counters ore 
res POnrfbte fto reduction Of. titt ta-nsfv tone fe a ore-finished 


NEW CHARGES for the in- 
dustrial use of water in the 
Bradford/Shipley area are run- 
ning at 74£lp per thousand 
gallons.. . . companies like S. 
Jerome and -Eons, fine worsted 
manufacturers, at Shipley, use 
millions of gallons a year due to 
their six-day production cycle. 

lake them, Jerome would face 
a horrific water bill if it were 
not for the installation of its own 
independent water supply. 

- The acquisition of a licence 
from the Yorkshire Water 
Authority allows the company to 
extract water under a £50,000 
system installed by Fairods 
(UK) which means ft will pay 
for its water at only 2p per 
thousand gallons. This suggests 
a cut in the company's water bill 
from £40.000 a year to £1,000. 

The system comprises a bore- 
hole, borehole pump, storage 


tank, filtration and water soften- 
ing equipment, together with a 
plant for recycling cooling water. 

Sunk to- a depth of 50 metres, 
the 250 mm bore is capable, of 
supplying 19,850 gallons an hour. 
The water is brought to the 
surface by a 25 hp Jacuzzi pump 
suppl ied by Jacuzzi-Farrods 

(UK)- 

Once on the surface, the water 
passes through filtering and 
softening plants before being 
stored in a tank with a capacity 
of 95.000 gallons. Automatic 
sensors in the tank are linked 
with the bore pump to ensure 
that the water level never falls 
below a certain point The 
whole system is automatically 
regulated and requires die mini- 
mum of maintenance. 

Further from Farrods (UK), 
Dellamires Lane, Ripon, North 
Yorkshire. 0765 4455. 


• COMPUTING 


’- -ptFor EASY use th kitchens. 
552% to t Mag fSfw 

m <£& V is 

In addition, however, the kOn'Feltham, Middlesex TW13 4BG. 
has seals which swing t o, Made from 30 tin chipboard, 

prevent heat loss round the sMat fei a standard size 3 metres by 
of the Jain cars after taadtife qq cm. the surfaces are covered 
Under the seals the~kHn~is opau^ia Respa tex laminate the 
to the _ atmoq^mre to ■ affinr long sides are edged in teak. The 
entry of large volumes of ^Sdr . edging is available in two 
when the former, are oiamed •*W ; differe nt profiles— one sloped and 
The seals, together with two bite 'the other grooved— but special 
hinged dampers in xoq&'$* edging can be supplied, says the 
controlled electronically by . a ^company, to a .minimum order, 
programmer which also derides The customer also has a choice of 
the gas/air ratio' settings of ' the any laminate colour, pattern or 
four burners. surface finish- 


Focus on 
Telecoms 

A TWO day conference “ to 
review and assess” Post Office 
Telecommunications is being 
organised by 1SL Information 
Studies— with the full co-opera- 
tion of Pqst Office Telecommand 
cations — and is to be held at the 
Cumberland Hotel on September 
25 and 26. 

The organisers hope to strike 
the right balance so that the 
conference will be neither a 
sales pitch for the post Office 
nor a session aimed at “knock- 
ing" U. 

An unusual feature Is that 
those registering for the con- 
ference are to be asked before 1 
hand, for their views about the 
contest Responses will be used 
to “tune" the programme. 

Speaker line-up so far Includes 
the director of marketing at the 
P.O., Freddie Phillips, com- 
munications chiefs from Ford. 
Unilever and Massey Ferguson, 
and a umber of consultants. 

The conference fee Is £225 
ex VAT and registration farms 
with further details can be 
obtained from the organisers at 
Regal House, : Lower Road, 
Chorieywood, Rickmanswurtb. 
Herts, (Cborieywood 4244). 


CONTRACTS & TENDERS 

INTERVENTION BOARD FOR 
AGRICULTURAL PRODUCE 

INVITATION TO TENDER 

Tenders are invited for the urgent supply and delivery cif. 
from any EEC port of 1,000 tonnes of bagged sorghum 
destined as United Kingdom national food aid to the 
Government of Gambia. Each new or good quality second- 
hand jute bag shall contain no more than. 50 kgs of sorghum 
aud be marked in characters of no less than five centimetres 
in height: “Food Aid Gift of the United Kingdom." The 
sorghum is to be loaded in one vessel and delivered without 
delay to the port of Banjul. 

The allowance for the supply and transportation costs of the 

£ rain will be determined on examination of the tenders, 
lellvery terms embodied in a Notice of Invitation to Tender 
together with Tendering Forms may be obtained from 
Branch B (Cereals), Internal Market Division, Intervention 
Board for Agricultural Produce, 2 West Mall, Reading. (Tel: 
Reading 5S3626.) Tenders must be submitted by 12 noon, 
Wednesday, 5th July, 1978, to: 

HOME GROWN CEREALS AUTHORITY 
Hamlyn House, Highgate Hill 
London N19 5FR 


INTERVENTION BOARD FOR 
AGRICULTURAL PRODUCE 

INVITATION TO TENDER 


company notices Tapp maker 


PORTUGUESE GOVERNMENT 3% 
EXTERNAL DEBT 1902 

In accordance wtthi tb* Law of the 
Mol May 1902 and th». Decree of tha 
Btfi .August of tiia same year the -Sinking 
Fund Instalments doe 1st July 1978 have 
been eflected by the Junta ■ da Credits 
PnbHco hi Lisbon as (own; — 

_ . . 1st Senas Banda • 

Purc hase s In the market consisted of 
2 bomb of L20.OO each and 7 bonds of 
dOO-DO each, totalling £740.00. 

The Balance of the htttalment was mode 
up by drawfim fn Lisbon of 1 .500 bonds 
of £20.00 each and 120 bonds of £100310 
each, totaiuim £42.000-00. 

2nd Sartos Bonds 

The en u re Instalment has been met by 
purchases Hi the market of 244 bands o! 
£10. IBs Od Ooch' totalling £4.855 12s Od 
BJeomal et|uhal«nt £4,555.60). 

„ 3rd -Series Bonds , 

The entire instalment has been met bv 
the drawing In Lisbon of 2 .SOS Interest 
bowing bonds of £19 IBs Od each and 


number of imn-hiterest tearing bonds ol 
ss J2* M nd £33 3s 4d respectively, of 
McrticaJ numbers, totalling £23.647 16s Bd. 
(Decimal equivalent £23.647.83). 




shall be delivered in bulk together with 200,000 empty spare 
sacks marked “ Food Aid Gift of the United Kingdom ” with 
sufficient needles and thread for bagging at the ultimate 
destination. Loading shall commence as soon as possible but 
no earlier than 22 days after submission of the tender and the 
tenderer shall select a loading period of at least 15 days* 
duration. 

The allowance for the supply and transporatton costs of the 
grain will be determined on examination of the tenders. 
Delivery terms embodied in a Notice of Invitation to Tender 
together with Tendering Forms may be obtained from 
Branch B (Cereals), Internal Market Division, Intervention 
Board for Agricultural Produce, 2 West Mall, Reading. (Tel: 
Reading 583626.) Tenders must be submitted by 12 noon, 
Wednesday, 5th July, 1978, to: 

HOME GROWN CEREAL AUTHORITY 
Hamlyn House, Highgate Hill 
London N19 5PR 


DRAWING 

At drawings made in June 1978. in thi preunca of ■ Notary Public in 
Stockholm, pc pom Certificates in respect of Bonds of 

THE GERMAN REICH 4% (FORMERLY 6 %) EXTERNAL LOAN OF 
1930 (the “ Match Loan ") 

totalling USS61S.I00 were drawn for redemption as it cha 17th. Juif 1978. 

Lisa of URificate, drawn un be obemned K Laaard Brothers ft Co.. 
Limited, 21. Moorfioldf. London. EC2P 2HT. 

The cerrifleares are payable on the condition gHren In the certificates ax 
from the 17th July I97B at arty of the offices ofiSkandinavisIca Enskllda Banken 
and Goabankcn as well u at the offices of the ocher Paying Agents. 

. No interest will be paid as from 15th- July 1978 on certificates drawn. 
Certificates presented for redemption shall be accompanied by all the interest 
coupons which are not yet doe for payment as well as by the talon. Otherwise, 
an amount equivalent to the missing coupons will be Withheld. 

The bolder of a certificate which has been drawn wHI receive -on Hi 
redemption a voucher in respect of the right attaching to the certificate to 
receive *' Funding Bonds '* when issued. 

Any of the drawn certificates held on behalf of residents In the United 
Kingdom should be lodged between the hours of 1 1 a.m. and 2 p.m. (Saturdays _ 
excepted) for payment through an A ut hor ise d Depos itary In London with " 
Land Brothers & Oh, Limited, 21. Moorffelds, London EC2P 2HT, from whom 
listing forms may be obtained. Certificates cannot be accepted through the pest. 


INTERNATIONAL DEPOSITARY 
RECEIPTS fIDR) 

Issued by Morgan Guaranty Trust CV of 
New Yorfc representing ordinary Convertible 
Class C shares of 
BRASCAN LIMITED 

A distribution ol US VO. 35 ner depositary 
■unbcable taxes and lee will 
be payable on and attar July 31. 1978 

d 1 c 2?‘2 n no - S. at lr> V 

— -Bnjsslt.. 35 avwine des Arm 
— Antw erp, 82. FranfcrtJWei 
London. 33. Lombard Street 

— Part s-.**. Place Venddme 
— fTanfclort, Bodcanheimer 
i annstrasse. 8 

— ^trleh. Stock era tresxe 38 

is? £ JSaMaa^ 1 --^ 



CLUBS 






PUBLIC NOTICES 


NOTICE IS HEREBY GIVEN that Ebrahlm 
Yuscot Bswa Of 15 Stratton Rood. Glou- 
cester. Is applying to the Homo Secretary I ^rioog wvqor examination at lh'e*HToh 
lor naturalisation and that any netson who jnfv lira 

knows wry reason why naturolMtloa shonia Sjf it vour peril. w»o*n 


has many 
functions 

IN ADDITION to performing all 
routine, punching, reading, con- 
verting and editing of numerical 
control data, a new Ultronic tape 
machine incorporates the TJDS- 
Ricoh RF40 "double daisy wheel" 
high speed printer. 

A CCITT V24 Interface is avail- 
able which can provide data 
transmission and time sharing 
facilities ax well as connection 
to additional equipment 
The UDS 7000NC series is built 
in the- UK, and UDS owns the 
world-wide marketing rights. It 
is designed for the preparation 
of tape but also provides a highly, 
flexible system for general data 
preparation, repetitive typing 
systems and data handling. 

_ An electronic keyboard with 
line buffer allows for error cor- 
rection before punching, . and 
the infra-red optical tape reader 
and heavy duty but quiet punch 
are capable of handling all NC 
tapes., 

Ultronic Data Systems, UDS 
House, 3. Jefferson Way, Thame. 
Oxon 0X9 3SU. Thame (054421) 
3151. 

Accounting 
on a small 
machine 

FACT — an international financial 
accounting . and management 
information package system by 
CMC— 4s now available to run 
on the ICL 2903 series following 
i is conversion by CMG Computer 
Management Group (Southern), 
f ®£Strategic Vending Services. 

SVS _ specialises in operating, 
supplying aud m aintaining vend- 
ing machines in the UX 


through seven service centres. 
Although each centre functions 
as a separate* company, all 
accounting is centralised, through 
the London head office. But Us 
mixture of manual and com- 
puter systems based on the ICL 
2903 was becoming cumbersome 
and the company needed a 
means of Integrating the overall 
arrangements which would pro- 
vide more sophisticated financial 
and management control infor- 
mation as it continued to grow. 

Fact is made up of four 
modules — sales ledger, purchase 
ledger, nominal ledger, - and 
m anagement information. They 
are folly integrated so that 
transactions need only be 
.entered. once from source docu- 
ments. The system is then able 
to process data through to trial 
bahufee and final accounts. 

Forther : on Fact from CMG 
on 01-686 8251. 


CONFERENCE 

ROYAL LANCASTER HOTEL, LONDON 
AUGUST 30-31 1978 






I -the world’s largest manufacturer 
1 oF Industrial SucKca Qeaners 

| Bury SL Edmunds. Suffolk 0284 63163 


not be sransea I mould send a written and 
statement of tfc tacts to the Under 
i Socretarv of State. Home Office tNttloa- 

raS7s.w. H £ MkiSf: ***** 


Dancing portfien.| 


Road. Croydon CRB 2BY. 


o JBSSS AL«»*ro. 

' u sau-. * “W“- 

61 FHzwiiiiam Satram, 

. .Goblin z. 


SMALL BUSINESS 
COMPUTERS 


If you are planning to buy a small 
business computer system you must 
r estd WHICH COMPlT£BR? 

In the July issue we have a special Suppliers' 
Guideto sjrstems on the market. We describe 
what they can dpj haw much they cost, and list . 
suppliers’ names and addresses. 

. For a copy of our July issue, ring Annabd 
Hunt on 01-278 9517* or write to- 
WHICH COMPUTER? 2 Duncan Terrace* 
London, N.l. 

WHICH COMPUTER? -tfae mtHUhlv maggrine wiuch makes baying 

OOtnpUlers, egiiip w<r mti fwww miv-fi nwia-. 


• Aerospace indu stries^ at a crossroads, have lei 

make decisions that wiH dictate the shape of aviation 
for decades to cortie.1 

• Decisions about airliner designs, fares and noise ... 

• Decisions about reoi^anising airports to cope with 
increasingtraffic...- 

• Decisions based on sfrategic^ arms limitation 
agreements... 

Before the decisions, the debate. Th e Financial Times 
Conference will be guided by speakers of intemationcJ' 
reputation, representing European and American manufacturers, 
consumers, planners and other points Of view. They will 
prescribe on present problems and suggest strategies for the 
future. 

On the.eve of the Farnborough Air Show, this conference will 
equip delegates with the contacts and the ideas they need to 
meet the challenges ahead; 


To The Financial Times Limited, Conference Organisation, Bracken House, 

10 Cannon Street, London EC4P 4BY. Tel: 01-236 4382. Telex: 27347. FTCONF G. 

Please send me further detallsbfthe WORLD AEROSPACE CONFERENCE 

NAME (Block Capitals Please) ' ; TITLE 

COMPANY . : ' 

ADDRESS_ ^ ' . • • 



I tJ 9 < 









The State-owned company 
that behaves like an 
American multinational 


1972 


1973 1974 1975 1976 


C and W tried hard to minimise director, Archie Willett, was C and Vs expertise in telecom- 

the embarrassment, by splitting getting £12,828 and his four munications in the booming 

up l he loss and declaring only executive directors £10.000 world markets. Cable and Wire- 

£422.320 as a loss in the 1973/4 each, they revolted, and refused Jess now wants itself to be seen 

accounts. In fact, it lost more re-election. The Government as a project management group, 

■ • , 1 s,!, j.., .w < hi Thao £2.5m on the whole would not concede a rise, and capable of specifying, managing. 

Key men at Cable and Wireless— Mr. Richard Cannon (left)^ Mr. Peter McConn (centre) and Mr. John Bird, venture and it bad to promise they backed down. and completing major telecom- 

the Department of Industry to The discontent remains. The munications projects for states, 

CABLE AND WIRELESS might oversaw the companies’ consoli- traffic on the international lines keep it more fully informed of Boyle Report of 1974 recom- as well as installing more modest 

have gone down with the dation imo Cable and Wireless, in the late sixties improved the its affairs in the future. mended increases in "top systems in airports and hotels. 

Empire. Instead, it survives and Cables were the-'. Penders’ profit figures, the company was The affair was serious enough people’s” salaries which were in retrospect. Bird believes 
thrives in a post-imperial age, business. But a new technology sufficiently wary of the years at the time, but was played implemented in the case of that the underlying misconcep- 

d»ing muLtd-mallionipound < fr>aU; — the wireless— grew ^up in the ahead to set up a “ future of the down in a sympathetic report senior military officers, judges tion running through the com- operation — with the largest a massive area of competition, 

with the Saudis for all the 1890s, and that was* ‘Marconi’s company" committee with the by the Commons Select Com- and top "civil servants, but not pany when it first tried to manufacturer around. usually heavily backed by U.S. 

world as if it were an American business. After two decades of specific brief to find ways to mittee on Nationalised Indus- i n the case nf nationalised diversify was to believe that it During and since the byzan- Government and diplomatic 

multinational. hard pounding between the two diversify. The first forays into tries in July, 1976, which noted industries’ Board members, was starting from scratch in an |jne negotiations for that con- pressure. 

That it has !k Hi*. m the early 1990s, the Imperial radically new markets, however, that “there is no doubt that the Since 1972, their pay has gone entirely new business. 

wwp rwnarViHfl Wireless and Cable Conference were unbappv and, in the case Coltronics venture turned out up by 8 per cent compared “Cable and Wirel 


160 


£m 


The Rapid Recovery; 

l of Cable & Wireless 


£gp TOTAL 

fcS^biFI \fl BEFORE TAX & , 

80-rEXTRAORDINARY ITEMS ^ 



(t*) (jti) (0) 0) (23^) 

RETURN ON CAPlTAt~^EMPLOYEP (Z) 


tract, Bird was building up his Closer to home. C and W is 


msrrfx romarJeaWd fnp wireless anu uDie uonicrentv were unuappy ana, in me case v,u.mn..« > »"* *»f -j „ . . — “woie ana Wireless was organisation, largely by carving increasingly finding itself up 

mndpim f of 1928 pronounced that com- of the Coltronics episode, K> be an unfortunate and with their mternatjonai ^ com- siting on top of a gold mine— j t ou t of the present structure against the UK company Inter- 


* Potion musreease and* that the embarrassingly* over^ubticiseir’ unsuccessful excursion into the petitors. Cable and Wireless 
in the inlemationai telecom- pender group 5 must merge. ■ ■■ 

muouauons market, where com- Cable and Wireless was the . . , «»■ UK >- iney are tne Dasis tor round the world. The company’s majority snaren 

petition is intense and where eventual result. .Tnhn TJovd rCDOrtS OH CciblC 3.ITCJ W ITClCSS, WHICH the new business. No other reg ional directors — for North been marketing 

oisiux , , systems house can compete with America the Far East, Hong systems, especi 


and that was its own people, all 0 f c and W — though he brought national Aeradio (IAL) which, 

over the world (it has 10,000 j n sonje salesmen who are also ironically, is also state owned: 

overseas staff, only 2,000 in the en gj neers to get the message British Airways is its 

UK). They are the basis for r0 u nd the world The company's majority shareholder. TAL has 

^ ■ — - «, dim niuvu iuuuno UI1 unv» » . tbe new business. No other regional directors — for North been marketing communications 

the presumed strenglhs of capi- The curopanv emerged from * 3% * UA1 * ^ , __ , . - . systems house can compete with America, the Far East, Hong systems, especially to airports 

tatet aincerns — flexibility, the last war as an imperial relic. WAn o mtltrapt tC\ SlinnlV the SaUCllS With 3. experience and pur know- K ong. the Middle East and Wes- but also to military’ and other 

$>eed of decision and dynamism The Commonwealth Telecom- flab WOH d LAJllUdVL IU liiv wouw«j ledge and our reputation. In so tern Europe — now report both civil clients, for some years: it. 

are thought -to be the indis- munications Conference of 1945 CVCtPITl Worth neflrlv £400m S“ y „ of * e world ' we “ e to Dick Cannon, the head of the too, is undergoing a period of 

penmhto requirements of allocated to the Dominions and military 1 COTTiniUniCaUOnS SyStcm. WUlLH IlCaiiy XrtUVSlli there already.” concessionary business, and to expansion, 

operating aft all. India the Cable and Wireless — The first major part the Bird. The regional men have Unsurprisingly, there have 

Secondly, it 4s more famed— assets in their territories. The company played in its new role to sell C and \V systems, as well been suggestions that the two 

in tihe UK, at least — for the rest of the company was . . . „ . . rhp nnv( »rfv line was indeed i n an area of tradi- as man age its networks. should somehow get together, 

relatively low salaries its top nationalised— from January 1. Coltronics was a small elec- non-concessional business field people are on tne poven* une. gtrensth _ ^ e Middie The forum in which these sug- 

management are paid then for 1947— with the more or less ironies company based in Hong . . . (but) viewed against the Peter McCunn. the present man EasL M far back M 197Si gestions were made has been 

the services it offers This i«s exnlicif assumntion that the Kong, bought by C and W early achievements of the company, aging director, and Lord Glena- pj essev bad persuaded Cable | OTlSUltSHICV 0,6 “ries of discussions on the 

br^Sh S ^tewouldSSi&diS misra for the taock-down price its status and reputation. Col- mara (the former Edward and wireless, and B1CC, the V,OUNilWULJ formation q{ Br _ tel g proposed 

the. irawi inw'wihieh ritatatoe that and Dolite demise of 810,000. The idea was that ironies was relatively ununpor- Short) are pushing hard for a c able makers, to form a con- Besides the regional divisions uk telecommunications con- 

the *°“ iMBUhetuw Umf release from their boedase, SOItium „ id for tte massive (which aIrea dy ettisted). Bird , u „,n cy , formed fram the 

totgher e saioiy, hagber It refused to die pwyeyer and components re- Possibly more damaging to without success so far. extension to the Saudi telephone has created specialised groups expertise of C and W and L\L. 

neo-coloid^ phaw <T uired by the group, and that it the morale of Cable and Wire- Yet the supposed correlation system. The three companies which will work up the main The discussions continue, aimed 


the incentive. 


termed 


would also manufacture on its less was the low level of salaries between reward and perfor- reluctantly concluded they were communications growth areas— al an announcement next month. 



dox. 
end 
a 

b^ d reasonTor its' low price— meant 1972, in common with Board sionary business. The early indi- A t and T, which was then look- those components which need Office and the National Eco- 

gr^h taWeTm thTI^ l^Os. Sh^nd w7rele«^^tracte ^at Coltronics had to deliver members of other nationalised cations are that this iniriafave ing for a wor id role after in-house designing. nomic Development Office, also 

-Rte inmgi nation ^ LTby Ae company had riSSn? half the calculators at a loss, industries (though at a is proving a success. mopping up most of the U.S. Bird has entered an area of parties to the talks, that they 

the technology, hew at (he time written off— tvofcally'^ricned and P®T compensation on generally much lower level). By The key man m the new business. business where the opposition should pool their project 

while his commercial sense was over 20 ru r w prr'mpTpd the non-delivery of the rest 1976. when the then managing strategy is Mr. John Bird, hired The Anglo-American consor- j 5 exceptionally tough and the management efforts. C and W 

reacted to be £L' JEEZZmX TEd from Ultra Electronira “ Ma ^’ Mum very nearly got the con- stakes are high (so. usually, are and IAL want to compete. 

S ^m linton - fte various the United wTre 1975 (where he was depuj tract, which was worth anything the salaries). Apart from Bell How long the Government- 

parts of the empire examples— even asked C and W glHClMPQQ DDHRI CMC BY OUR LEGAL STAFF mana Si ns director >’ b y Willett up t0 £2bru In an immensely Canada (project manager for their owners, after all— will 

parts tne pire. e^mpieMven asked L and w BUSINESS PRuBLknlo BY OUR LEGAL STAhF who retired two years later, exciting three-horse race, which philips and Ericsson’s Saudi allow this state of affairs to 


He therefore laid cables and to run their internal systems 
formed companies— generically But the fears remained, and 
known as the Eastern and were, in the early sixties; to 
Associated Telegraph companies some extent justified- The 
— throughout the closing company lost a number of 
decades of the century. He died .interests in West Africa, and 
in -1896. After a 20 year inter- South East Asia, .with • flr-con- 


Sound advice 


’ Bird is now managing director included ITT and a consortium contract), the French and Ger- continue is speculation. The 
of the company’s communica- made up 0 f Philips, Ericsson mans have greatly increased answer may be — for as long as 


time to time concerning the tions systems division: his task, and £ e ]j Canada, the last group their effort in the consultancy/ both are successful. In that 
establishment of title to land a $ he puts it, is to “see if we on jy pjpped the Anglo- project management side of context, the great success scored 

,, after 12 years’ oecu P a “®“* 5®" ran build a bit more added Americans mainly— it seems — telecommunications in recent in April by C and W in winning 

Oil recording JH* J Vr IeZ. value int0 , CabIe “ d w,reless ^ on price. NaturaUy, Cable and years. The Japanese-especiaUy the contract to supply the 

•reenum Tiis nrandson Sir John waiimf - »harn din in -irniffi • ■ & mended in order to formalise °P eralians Wireless would have preferred Nippon Electric (NEC) — are Saudi National Guard with a 

'SSn PeS^tS t^ ov^X fiSart of Ihl rable . V"* g* H Se^eris^ositfon (e.g, noilfica- Bird, strongly backed by to win; but tfiere was still the winning contracts in the Middle military ^communications system 

w^? 5 C^SiTfteecnm ei^rbated by ftSS E£S! ^ Uie Land Registry office)? McCunn and by Dick Cannon, substantial compensation of and Far East: with the advent ^probabJy worth up *o f40ffm 

n^Dies to be su^eed Pd in 193^ ' Sin-annr^rnm-h^ No action is required, but it is head of the concessionary busi- having been seen to be teamed of Western Electric on to the by completion— is a powerful 

pames, to be succeeded, in 1932, of the Smgapo re branch. cog«P ^ m “ desirable to rerord the position ne ss. is offering the resei^ir of -as a project management world stage, the U.S. provides argument for being left alone. 

nigner ifvei oi ^ vcriwum «»•». i v while eyidence ^ conveniently. 

rccoip6r» even lhoufin tpcrc j t* thp land, is in so 
appears to’be nothing to stop him avjula< >Je. it the iana is inn 


by his son, . Lord Pender, , who Though a 



Pedestrianisation, new roads, tihe most modern 
buses and the UK's first Area Traffic Control 
system make Leicester as easy to move around 
in as it is to reach. 




LBCESIH? 

RjQhlriltiecsnbe 


Enquiries Id: Gordon K Smith FRICS 

Industrial Deveiopment Officer 
• Telephone 0533 549922 Ext.6700 

or John Brown FRICS 

Industrial Promotion Officer 
Teteptmne 0533 549922 Exl6760 

Leicester City Estates Dept., 

New Walk Centre. 

Leicester LE18ZG. 


HEAEEH* 



, r/Znl nfZh area of compulsory registration. 

‘L louIrL 1S wise 10 * pply to ^Sister 
i« eouI,L the land with possessory title. 

tn^mndifv what Such title can be converted to 
We arc inclined to modify what -hcQiuip tjtip after 15 vears In 
we then wrote The difference iUs deste- 

between attendance by an un- a u, e , 0 record, bv statutory 

an??h^ahuuv nf i'mSr who declarations the acts of adverse 
and the ability of a member who possession relied on , 

knows shorthand to make a full y 
record of the transaction (equiva- . 

lent to a tape recorder) is very MjlcfpTlIICr thP 
litoey to sway a Court in favour umaunug 
of the latter being permitted. ■ , ■ , 

However, until the matter is SDOIT lvl 
decided we would still sound a 
note of caution. I own a house which I propose 

lo let furnished (or short periods. 
• m* 1 (a) Would I have to have a rent 

I ltflp to ItS ran laiuaiion Tor six-monthly lets? 

XllAv- 1U 14&UU tb) Is (here any ceiling to the 

Following items lhat have rent for holiday lets? (c) Would 
appeared in your columns from 1 need an itemised list of con- 
tents for Lhe tenants? (d) WouJ«l 
my existing insurance of the 
house be adequate, when it is let? 
(e) When assessing the rent tv 
charge is something allowed for 
the cost of keeping in repair? 
ti) Is it belter lo lei the tenant 
pay for electricity, as the EIcc- 
tricify hoard suggests? 

fa) You do not have to have 
a fair r«nt determined, unless 
your tenants require it. The 
tenant can make a reference to 
the Kent Officer but neither of 
you is bound to do so. tb) You 
can make genuine holiday let- 
tings and remain outside the 
Rent Act. (c) Yes, a full in- 
ventory is desirable — but there 
is no requirement in law. (Ui 
You should consult your in- 
surance broker as to whether 
your existing cover is adequate, 
ic) The demand of the market 
is the usual guide to rents, not 
cost, ff) It is wiser to let Oil* 
tenant confract direct with the 
Electricity Board. 


® W ® is anew monthly journal 

which ’will give early voice to specialist views on the nature and extent of 
all new and existing hazards,.together with practical guidance on the 
techniques, methods, procedures, detection and control devices by which 
they can be successf ully efiminated or controlled. : 

Whether you are a Director,- Safety Officer or line manager, this new 


necessary to tackle the many health, safety and associated problems in 
industry today: ; 


A dumb lhe many ankfcsduefijr earijr puWiM/ioii areihe following: 

■•RMSonabb'pnKfieaWe” J- J • . ,, . L .. 

An CTaminarion of ihlV qualifying phrase nrihe Heaftb and 
Safety at W«k Act, 1974, and ihe problems it poses lor 
nMnagcnjent. 


Joint cimsullallnn 

The era of Hie Safely Rcpnsciuaii ve and ii« implications for 
managemem . rrainuic , onions and the Authoriitca. 


If you have not y^t subscribed to this journal, complete the coupon today 
Act DOW! Do pot miss the first issue published I September 1978 


Vk>K 3 Bi vhi m bras 

Mire*. Marital 

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. , . .{11 hv urirjhie In • 
jnn.wwsiwsi'W- 
ilHr*oiirpa>Jimi "iH • 
l tw irfMHKNl '■ f“B *f 
j jipaarewieoiinb . 

I >ail»r(Hft>iimor 

1 Journal 

. ibrer.BHjuit.uf jour ; 


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uo»'i> flc«y: 

' tfL77 HiphSircd 
. Croydon CKVIOI I 

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■AiUm 


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For the answers given in these 
columns. All inquiries will be 
answered by post as soon as 
Possible. 



Y4v/‘ 


Promotional and technical 
literature tor export 
sales to the 

Arabic-speaking countries 
ot the Middle Ease and Iran 
iiinsr be translated and typeset 
in the idiom and style 
the market demands, 
by specialists 

UKAPOUKY WILKINSON 
.4 Pl-IICS) LTD 
NEW MALDEN. 

Surrey kt; +nh 
TELEPHONE: 01-947 3-71 


I know we need 


more 






short of cask 


If yours is a private manufactunrig firm then 
you may be entitled to financial help from the 
Government. 

If you employed under 200 people on 
15th March 1978 in an Assisted Area, or one of the 
Inner City Areas within London and Birmingham, 
then under the Small Firms Employment Subsidy 
every extra full-time person you take on could 
get you £20 a week and certain part-time workers 
£10 a week. You could get this for up to 26 weeks, 
which should see you over their initial period 
while they gain experience. 

The map shows the approximate 
locations of the Assisted Areas. Send 
in the coupon for the explanatory 
leaflet on the Small Firms g 

Employment Subsidy, or phone£. 

Jack Beilis on 01-214 6446. 

This scheme is open for 
application until 31st March, 1979. 

And the sooner you apply, the better. 


Assisted Areas 
Inner City 

Partnership Areas onfy 



Small films Employment Subsidy 


Please send me details of the Small Firms 
Employment Subsidy Scheme, and the 
areas in which it applies. 

Post to: Jack Beilis, Small Firms 
Employment Subsidy, P.O.Box 702, London 
SW20 8SZ,or telephone him on 01-214 6446. 


Name. 


Company. 
Address 


Department of Employment 




I f 

■ A, 


i 


V 


16 

LOMBARD 


EEC myths and 
realities 


Plants that will not let 


Financial Times Wednesday June 28 1978. 



BY COUN JONES 


THE BEST thing 1 have seen, house falls away into grim and. .Unwary gardeners ' will wet nate'ahQnt'shbwing any leaves 31 ' That sadder admit- to- being: a trusses a to shorty and sweetly 

this year so far has been a white late extensions. Covered to the come them, tie them in to the kept too dry.' Whoa year plant: had W»sw»&an'!th most -years, scented. The depth or uxeir him 

Wisteria. It was no half-white, ground in dower, it provokes wall and teU their confidants that does b^» to grow, tty -to pro- jo August or®, T notice that' the colouring varies from want to 

short-flowered and so veiled in thought miliarias ate growing well and vent its young stems from twist-. pale-flowered Sinensis forro.isup plant Of course this w lovely 

leaves so that you could hardly Some plants, not. many, have only the F.T. makes a fuss about ing round each other. Again, at ’ “* "**" 

even smell it I think it most a way of needing attention just them. In fact, these young this - is important- as the shoots wL-^- -- — ^ . , . . 

have been a white Macrobotrys, when you want to forget them, tentacles are useless. Cut them are - to become the base of a 1 tidy it up, -too. late :and' ton' it on those old Iron stops at the 


THE 
membership 


tendraire^&er^iaii ?heip to thatoSer shor ter-flowered Chinese wish jbi ng o ut of’ flower; the they wHI haye.thickened into brace. The sap, theh, will be cur rather. AJj£'.P>op«r tiae'at H-suany/suitsthem well. Never 

notnife a£v eutar Sares hi® ter5os Ae S*** *«W ^oraytetes.which I azasure you _i • - • ' . which to strike, • • -- ■ ;bpy a “pink” variety as it is 

S& af A&S5 “ begin, because the latter have now pot out of your ^ I , . 1 ■ . . -1 * v*Shqu>« _m : feed . it? hardly p Ink and alwap dis- 


to dispel each teme^e European mns of I wm ettolTsh^ up%£riy“£d £££££*££ to" £ have beto GARDENS TO-DAY BY ROBIN too should not app^inti^ 


Commission as 

to another of the UK Govern^ secondly. 


that 


. “dr I the Chinese ones, at times, excel pruned to encourage the new 

seneme u | th^moTvoc ' in • YhsmspliM in anwth tfcM.K win flAlltir ' 



freely acknowledges 


This last point surprised the 


sic&ea are a necessary instrument Commission vJX 

lal policy, and it lets to other member states hSlonvJ 1 ^ g . ** tancih advu5 « ble - Yaa *** hit it again 


spiS*c 


of national 


ffiMSTSS 1 SSMSffiSSfasl |«r« 
fijsjrsrst.v ? s& s^jssssszs 

,alr ■ play “ ^ -a aa "gs*. 


member countries. 







Unforeseen 

The latest UK subsidy to run used on the continental National ^Sst’s S^ihey* hawTse^d £ 

flwl of Community rules — the P ine Claydon Houses near Aylesbury, will ftog out- soft tentacles, in.; 

offshore supplies interest relief tSu 9 lb stands on the side which faces all directions, many from The 

^ont — is a good instance of *g®““ « SS? the family , church before the base. 

where myth could quickly depart *P le ior trade. One exeep- — ~ - - — : — : ; a. 

from reality. Per the scheme not ^ on was France which, after 
only touches up oo a particularly pressure from Brussels, decided 
sensitive area of national policy conform last June. The other 
— the North Sea — but it was wss . - - Britain, which fell into 
introduced by the pro-European 3*°® 111 Apnl this year when the 
Heath administration, as far back coverage of the ■ concessionary 
as 1973 a " d ds now being 1 finance . available through .ECC2D 

defended by that noted anti- was changed so . as to. exclude 

marketeer, Mr. Anthony Wedg- “Jes to the EEC.- 
wood Benn, the Energy Minister, •• N-ot surprisingly, the Com- 
Yet. when examined, the Com- mission, has. now decided to force 
mission's objections do not seem the issue on the offshore supplies 
at all unfounded; and the Gov- grant After five years, it has 

eminent’ s desire to argue the become tantamount to a produc- FRANCE, whose Irish Sweeps a “far better horse " than that 
issue out has already had unfore- J_ Ion *ny 0836 Britain may Derby winners in recent years Epsom winner. ‘ 

seen consequences- have Htue to lose from dropping have included Fiance Regent, The probables for the Sweeps 

The grant was one of the ways jfef. .. cr ren2 ^ via S rite Irish Ball and Maiacate, wiU Derby Include Shirley Heights 

in whichBritish firms were to be discnminatorynatore since most have only one representative on (GreviUe Starkey), Hawaiian 
mviuccmasnimnswere development work on Saturday. Sound (Willie Shoemaker), 

This is El Badr, trained by German (Lester Piggott), 



. . Instead that huge. 

be allowed to dry out. Be care* three- foot trusses of flower on 
fUl, especially If B is planted the Japanese variety, sometimes 
M the foot or a- tall-sotrth wall «old aa - Macrobotrys, are an 
-in one of_. tooap -narrow beds astonishing sight. But they need 
_ udg by, a garter high: above apace and on the whole are more 
These . are the driest places awkward in their tastes. The 


the buda higher-up: are 
9 drop before ope “ 

The first summer, thin, i^ a 
which season If you want to . grow th 
_ T& lJ^ after Wwtorfo property. 

.^napt-a BWHtant . In ihd second 
treat be nxthlt 'SL as fid 

^ ntift So r so. BhortferCCr^t *■ : dose , w • or - potash, Suffolk. 

are groiftii T»el; to the-b^ Aowera are big,.. in broad 

— «- “* ■ - The leaves show that 

silvery down when they 

--- — _ - _ - - . »» - open to bronze colour, 

fosters a huge fewest of young young and fresh. The sceht is 
streamers- . exquisite and the sight oE white 

Which sbfmhiytm bay for .poor flower against this young leaf 
w ?**L c irJ5 oa *b wail, ramem- is unforgettable. Try it. if you 
- jtf fatortea dimb high ■ can -afford iL Prune it. spray 
and do noTflower in shade ?- if : and water if. I promise you 
Nurseries will sell you the that for ones, the effort Is worth- 





late the best old Wtstarfcis ard 
that through which you can sHtv 
the wall . on which: "tficy 
. ... with trained. If nechseaxsv- 
■kflWQ -evQDhigs again In September and 

' t in January, Tose joug i 

s first- shoots from lo^ down da 


tW 1 



dbetl- plant are a waste of its endtgy^ v Chinese SBuuuSs} Whose flower- whfle. 






One hope for France 
in Irish Sweeps Derby 


RHM store wflh New cash boost 


cost £500,000 


Maurice Zilber, whose name was, ^^irectory (Oulsty Roche), 
juottwtc ^ VaUey p^ge (Wally Swmbum), 


RACING 

BYDOMNIC WJGAN 


inadvertently, not published with 
the second list, of entries. Yves “wimUm 
Saint-Martin win ride the MaWauan 
Weaver's Hall colt; whose only 
success was when he landed a 


man 


■srsy^seta's; ss w ft 

ECGD facilities, whereas thetr SSSmnSMctmStilJmOT 
foreign compcWors-at that time : 
mainly American, Norwegian and cimnfr 
other non-EEC companies — could rnmr^«inn a rt p 
get loan finance atjSStaential 
rates from their national export In Ji 

credit institutions. The Govern- JSSillTSI 

ment therefore brought in the S? 

equivalent of a fixed rate buyer’s t ? e ° S l ho I^ s^PPhes industry 

credit for the devdopers of North ^i^.S?Zi se 1 Ct0 « 1 fa ^SI 

Sea oil and gas fields— an interest ^Pjrt competition in the UK 
Telief -grant of 3 per cent a year mar ^ e ^ 18 80 favouredi 
for up to eight years on loans Fvfnnf 
raised to finance up to SO per J1;A ICUl . 
cent of the value of contracts There is, moreover the ques- 
placed with UK firms for goods tion of cost. Som e £128m has 
and services used in the construe- n0 w been committed under the roffntiiS C' mficirlprc 

tion of fixed installations in the scheme (of which barely a sixth course ’ of ^aatilly this VxJjV/ COnSlllClS 

UK sector. has yet been paid). As the Com- 0 ™* 

In the early days when the UK mission 

market was still relatively small, sometimes ,, _ ... 

the scheme could be regarded as a new industry get on to its feet “ e likelihood of considerable LONDON TRANSPORT has asked 
acceptable either as an aid to but they should he available only improvement being shown— ^ Greater London Council to 
the suppliers (“ an infant when, to the extent, and so long ls m ^° Possibility that he ~ «_ ^ 

industry") or as an aid to the as they are needed. The UK «*>*» 

purchasers (“ developing indigen- share of the British offshore efter the 25-1 Zilber-Samt-Martin m a n e n t safety ntBasuxes for tube 
ous energy resources”). But as supplies market is now just over eU fPrise with Montcontoor in trains entering t aw n iiw l stations 
the. market — and the UK share of half, which Is not teriishort of the Friday’s Haxdwicke Stakes at on the Underground, 
it — grew so the complaints of most that could be expected. Royal Ascot The proposed modifications to 

unfair discrimination flowed in Ignoring the Community aspect Zilber, who more than matches buffers, si gnalling - and treotion- 
from French, Dutch, German and for tile moment, we should ask Ryan Price’s “Whitstead will current arrangem en ts .at nine 
other EEC firms and by the end ourselves whether the offshore win the St Leger* in the terminal stations would Improve 
of 1975 the Commission felt It had supplies interest relief grant is modestly stakes with such state- safety without eausingthe delays 
to take action. We have offered now the most cost-effective way ments as “I can walk on water” that result from temporary pro- 
some minor modifications but we of helping the [industry. Indeed, (a sequel to Empery’s Derby cautions adopted after the Mooi> 
have insisted throughout that the is it still necessary? victory), now rates Moncontonr gate accident three years ago. 


SALISBURY 
2J5— Mahtabee*** 

£45 — General Carl 
&15— Better Blessed** 
SA5— Twed* 

545— Heroic 
6J5— Ambeist 


A £500,000 FLOUR warehouse and 
packaging plant is belng'buiH. by 
f^slrckmgh Bnftdlng for Ranks 
Boris McDdugal at RotherhmnJ 
Sduth Yorkshire. 

It will serve the corapaary^. 
adjoining flour mill and will have 
spade for 30^000 50kg. bags 
flour. Packing win 
automated. 


f for N?wcasfle 


NEWCASTLE City Council is to 
allocate another £800,000 for 
industrial promotion this year, 
bringing the total for company 
loans and grants- to £lBm. 

The extra money- follows the 1 
launch In April of a- £300,000 
national - advertising campaign 
highly! that has attracted inquiries from 
150 industrialists. 


£3m paint shop 
for Chrysler 

THE FIRST phase of the Dodge 
£3m electrophoretic paint shop 
is in operation at Chryslcr’s 
truck, plant in Dunstable, Bed- 
fordshire. :■ • 

It gives improved rust-proof 
and priming facilities. It is to bo 
completed , in September. 


valley rorge twauy owioxjoxn;,- respectively while El Badr varies 
Reminder (Tow Xv^El l&f 

StiLHr ( JS aM s S SS' a ^SS2s aftenwoa at Salisbury, 

5f^ ,esti< L. M T^® 3 “r - 2 g where Better Blessed can lnatify 
Gale. The last-named pair do -(he . long haul- from Suffolk, 
not have riders booked. - by Hfting the Gwen Blagrave 
The Epsom Derby winner, re- Memorial Stakes, I hope' to see 
ported by his handler, John the BinWightman Ally, Mallabee, 

Dunlop, to be In tremendous return to winning form in the cot-awy. e»r* okmq 
shape, was again in demand yes*' Wilton Handicap. . - jSumyw mnv, 

terday at 64 and 11-8 is now the This tbree-yeanold is not f"fg- T * s wiaf* t l^oon 
best price available in . some harshly treated with 8st 41b and ballet. Too-t- Roouro *_jw ml 


ENTERTAINMENT GL IOE 


cc— Tb«M ttMnraa m«M wtitn cra«t| 
eantv br nkKitniit- or rt beat oBck 

. OPBtA & BALLET; t- 


THEATRE5 


THEATRES 


CRUrmiCH IMATM, 890 7753. STRAND. 01-030' 2660. Emunu 8 00. 

Pro*. Totnor. 7 JO- Oo«h ntitr. 7-0- Mot.- Tlttlrs- 3.0. S4I. .5.30 and 0-30 
"w/wai. t j®. Mat. Sat. 2.30 . no sox please— 

NLNDLE W AltOS by SMoto Nooohton. WC‘U BRITISH 


will lake a- tremendous amount £iA Stt i^ R S^itafSi T M^w. 8 i 
of holding if she recaptures her *^^3 


Sound and Inker- 
stand at 54 end 6-1' best form of lari: summer. 


Jrty 10 to IS Stttt 


djjWj « wtff 



2 jo. 

'OTBv - ** 
w,s 


WATBS Of T in MOpH 
Mmt OBaiWiY.dMw i. 


930 9832. | 
A. 30. 8. 


RANC1S 

CUKA 


THC WORLD'S CREATEST- 
LAUGHTER MAKER 
<3000 STATS £8.00.61 .00. 


MARTIN^ CC. 835 IMS. Era. 8.00. 

*5 

'■'5. 

RUN 


Tm. 2 45. SnuMavn 5 ami o. 
AUATKA CHRISTIE'S 


_ ' THE MOUSETftAV 
WORLD'S LON^fcJrTVER 


'26th 


sen paiay. aa tne uom- _ _ . . . , i f ; v 

says, subsidies may Although it js hard to make tllDC Safety Dlail 
s be necessary to help out a. case for him — even with “ MV “ 


EEC to open 
Israel office 




i COVENT GARDEN. CC. 
IG^ac^g. ^ _____ 

ToNaht. m. * . HkMb JWB J»| 
«t M«19UidA Toojr. -,fc 
Tu. reset at 7 JO: Lute MflNrT 
AroaM' nM .owtfa- 

10 an on day. o«_oaff. Notcc 
hkH. for Jury 
Not Jm IT - 


•'■•iSutoo. *-«US Df TW l.TWWN. _CC. 714 5051 . 

8-00. Dtnhw oipeino (Ban open 7.1 SJ 
■ ami 8.M Super Revue 


TRAVELUt 


dazzle 

sAsukSubW i^Saguay 


• LAST 4 



- The EEC will 
permanent 

brae! at the 

according to Mr. Raymond rmna j *#,.- . 9gLsP*» 

Vouel, a member of the EEC 

Commission, who iame to Israel ■_ 

to participate to Europe Day at uSSkfvmbi* 

the Modem Living Fair, cur- „ - . ryest* « dw». .. 

renfly being held here, our Tel ST® ^nuom^moSSkS?!?^ 
Aviv correspondent writes. ' 

Tius is the first time that the I THEATRES 

1 has had its own pavflkm aowhi khatiic.xc. <n-aa» wu 
at thiff animal event, which is e*m. 7 jo. m»&. tjw. aoTjSit. 4^ 
similar to Britain’s Ideal Homes “ - - -- 

Exhibition. 


. NOW IN ... 
THE (MEAT 




Wod. 


u In ■ i . .... i. 

Voar MM cMaao 


LYRIC .. 
.1 ^ 





TV Radio 



197V AM 197#[ 
OUT.** 


tS* 55T 1 wasrauNsiwT 


Hudfcin'n 

rwrw 

it standbv fii. 


f Indicates programme in 
black and white 

BBC 1 

6.40-7J5 a.m . Open University 
Ultra High Frequency. L30 p-m. 
Bagprns. 1.45 News. 155 WimWe- 
don Lawn Tennis Championships. 
4.18 Regional News for England 
(except London). 4JS0 Play School. 
4-45 Boss Cat (cartoon). 5-10 


Newsround Weeldy. 535 The 
WomWes. 

540 News (London and Sootfti- 
East only). 

5^5 Nationwide. 

6.15 Wimbledon Tennis. 

729 The Big Time. 

A10 Z Cars. 

9 AO News. 

9A5 The Risk Business. 


1040 Tonight 
U-30 The Sky at Night 
1L50 Weother/Regionai New*. 


the fofiowang times: 

Wales — 5.10-5J5 p.uxi Bifidowcar. 
5-55 Waies Today. 645-640 Heddiw. 
640 Joins BBC 1 (WimMedonL 
1L50 News and Weather for Wales. 

10.05 Jack Jones sings songs, ?S..g el, ?5‘.- 

with guest Shirley Bassey. ^ wamrnw. News and 


Heip! L30 Crown Court. 209 Uatvenlar OnHeage. an mn a TO** 
After Noon.. 2J5 GoK. 420 Nig* MaUc wWi John Jruma. 

MAfliaet Bentine^s Potty Time. 445 HTV 

A q Regions as BBC-1 except at EmmePdrie Farm, j «.» M — a. 


F.T. CROSSWORD PUZZLE No. 3,704 


545 News. 

6-00 Thames At A 

6- 35 Crossroads. 

7.00 Don’t Ask Me. 

7- 30 Coronation Street 

8.00 Relatively Secombe. 

9.00 Best Sellers, part L 

10.00 News. 

10J0 Best SeSers, part X 
11.15 WhJteker’s World. 


ml 

Cttooert Wjtb 'Heal Ticket, US R enoet 
W«t ttewH taM . US RepiRt Wales HeaU- 
ZOO Honswartv. &05 Betty Boor. 
5J0 Crossroads. LSO Banort Wert. CJ5 
Heoort Wales. AM Fitter Dear. Fatter. 


Tte test anneal 
** LONDON'S Bl . 

‘ MILUoSf^NAfW WUTI 
CREDIT CAWOROOKINQS 01 - 
[aUERY. S 3& 3B7a Auty 
card teas. 838 If ' 

BJ50 pm. Mart. 

. " MIRACULOUS MUSICAL." Fin.. Tines, 
with ROY HUDD end JOAN TURNER, 
** CONSIDER YOURSELF 4.UCKY TO BE 
ABLE TO SES IT AGAIN." Dally Mirror. 

ALDWYCH. 8 36 640 4. Into. 030 5332. 
ROYAL SHAKX5KAR8 COMPANY, to 
repertoire. TonWw 7.30 CORMLANbSL 
“An eve pl na of trm theatrical.. 

T_— TI 


r^TIONALj 
■ QTLAMTH fll 

tnowm- mux. 


■Wlii 


B^eEsr!*” 

•*w 


asm p8s * 

■w JRSntSSb 


wvtoa of true theatrical slonr.** S. 
With; SMndbenrt THK DANGS 
OH next peri. ThwvRSC afro 


rterol 


TM» •of THE 


anal 


6s,i 




PRIVATES ON P/ 



.Weather for Scotian tL 
Northern Ireland — 448-420 p.m. 

Northern Ireland News. 525-645 
Scene Around Six. 1120 News 
and Weather for Northern 
Ireland. 

England — 525-645 pan. Look except 01 tte foI,owin « times: 
Bast (Nonrich); Look North ANGUA 


. HTV Cymrn/U M t s d a HTV General 
S OTlca except: 12M45 pm Pecawdan. _ h _. 

Nntidn y DjuM. <L2B MW Havr. I FR®*. 

*M<m Un Tro. UBAJ5 T Dydd. 


at TTie PtaaqfUy Ttertrit^r Peter Nkhokr 


by 


THIATRX. . 

AtaOcR VoaT- 

11 Tinffl o- 1 


ZmEiaE what le 


KTV West— As HTV Groml Service 


4B5 S224. Loochtlmes . 

Oye O#.’" bY Boh MMmu Tim.-5M. n,n w 
1.15 pm-Suoi. -3.00 sad SOW pm, No| vfc T M 
■hows Moos. 


agBS.attLs3S38g. M< 

MS™ 


smi 335^1“^ 


pRosrfcr at thc ou> . __ 

tejSt 1 — - LAU *n« - 


pa: 


Xn ffoday.^EJB HNlec t tom on Span. J2J8 aar| 


Today (SouCbamptonj; 'Spotligbt Sattam 

South West (Pteroratii).^^^ QnertBO - 

BBC 2 


SOUTHERN 


„ 01-836 1711. 

Mrthwo Wad. 3L45. 

_ - 3. and .8. 

CAR&tt-L and TONY ANHOLT 
_ In SLEUTH. _ 

The Wartd-femoos TTiriller 
• • , by ANTHONY SHAFFER I OPEN AIR. 

" SediTfl the play esnin te jn fact an ' - 

otto- end total Jo> 

£2-00 to 


Mi. Sat 7J0. First nfflht 7 pm 
• • JfllYj.3 

- fllcen Aflchw a 
SAINT- JOAN 

% great perfamMnce' The TTmej returns 


Jrty 6 
wmna 


. NKSHT 

M M utendhe urtil. 14 Times. 

■ • - returns Jdy 10. 




„ _ - — except: 3-20-Ua pm HepOR West Head, free. 483 6224. cramngs Kurt 

«■ Ss* : EeBort ^ &> 

van Gogh with muse by _ . ■ Mons. 

MOZart SCOTTISH 'AMBASSADORS, 

AD IBA Beglons as london ’.muo am cbn cmb. ujS stationary mnmiy h n.oo. 

' _ ' Arfc l- 25 pm Now* and 1 Road Report 

2-*> Women Orfly. 505 fTirtimn- IHntisrt 

„ . - „ -- - - JwtaL _ 509 Crossroad*. U» Scotland 

(Leeds, Manchester, Newcastle); hub am FHends rtMan. u 
Mnaands Today /Birmingham); Concert. 145 pm Antfia News. Zjbq 

[ Points West (Bristol!; Soutlh f 2 ?^S£ 5 [* - 5 ^.~ Dle 7 ^^ f ovruicuiiut 1 SZSZZ 22; I euzabetn BwawasHh wayju wty.iytv i s^jBiufUK oo" Wle. and Sun 

- “* 1A20 am afppy. 1245 Hi Concert | AKHAO^ 01-437. 2663- E^no, W | 5^5^*^ g ^ ^ ^ 


CINEMAS 

Part. Tel. 406 2431. i abc 1 « —■ ■■ . 

MKR NIGHTS DREAM 1 “J * Shrttesbury A» 0 . 


MPU. Thur». 


W Slnbad Junior. SJO Cramroads. 648 1 •• Aaor - s, KSHo ( PHOOIDC- OT-a 36 229 4. Erapings 8.15. 

Day by Day?. Wednesday Basra. 1241 tm I Aa ^ ■■ is sopcm '• nww° s * M4,J,tl - Friday and .Setnnrtv_«.oo and bAcl 


U8 p« Socdbem Tfews. 2J» Boasestrty. 

ATV " " ' 

«5 am Sraneauna Different 12a - fi -- 

^ uo,veraity - 

11.00 Ptay School (As BBC-1 440 AW ^ ^ Wort »D"«6 by| A,rra 

ttUL). BORDER Wwth B art News HtedUnes. 2228 WOd I 

1145 open University. SarriroL Concert S2i!5 y ' » I "^ly toua . . m itJ-.Sunday Ttmra. 

*M tun. Wimbledon Tennis am-jSSSSw' ^ ... 

onA Ohamplonririps. . s&ow. w^Lonk^%Sto Life, xu* ^SSS^ x *°2*- 

8.00 News On 2. H24» an Border iJeiiSnniaww/^ *»*■ “r» Epfloane. I *» oxa. Prl. 

8.10 Spaceships Of The Mind. ' ULSTER 1 

9^ U. am SSMSfifc--. 12* ml 

10-55 Late News On 2. 

W^edon_highiigbts. mm* ius .«T Ne^^wSSHsTiS - - IfeSfiBStw. 


me ,p«y . win m wet an a MtDSUMMaR NIGHTS DREAM s«L fw« ^rZT?ZrTf^r' 
“•URC Pmich. Seat Prices: Eras. 7.45. Mat*. Wed., Thor. & sat. zjp | 

2240. «nmr and Too-wHce wtdT HULA- ' IjENSKA IAN TALBOT. OO V 

Sort £7 JO. ELIZABETH EWXI*SEN._pAyiD_ WETON { Kw,GfB» " V?’ l» «, 

-^% n,n, » a -«>- 
.3jOO and 200. 


8861. 
Wk. and Sun: 


TYNE TEES 


SHUT YOUR BYES AND 
THINK OF ENGLAND 
■* WWterty funny," Thu* 


TiM 
GARDEN 


w 


E _ TAYLOR. GRAEME 


Camden- PLAZA 


(opp. Camden Town 
(AA). 


. WtB^'uNYAMiisHBj^TWLrrH* 0 * 

WCp I 

Suodu nines. . ^SHEER 

Standard. "GLORIOUS 
LAUGHTER,** Tlpws. 


AULDNSANFAN 
4JS. C.SO. BU)0. 


t Buffet fhotfl 


jsL-aag^iJtg iSBfiSSbaiyEl- 

*J5 Tto_ Beatles. 1221 Cteaoat. Laffl ? w £ Mwi-Tlwra. and PH. I 


f. 437 4506. Credit card . team. 
197T-3. BJO^a-ni— fl.30 p.rn. I 
:flt-430 A'2 -Wed. mats. 3. ] 
re ‘ ComMnv ln- 

ADULT COMEDY 

... i fcyVMtr NfchoB ■ 

• : ; . pwvATma on paraj pe 
••RT tomar to g trtKnoh. S. ExuTM*. 

.nsr. comedy -op the year 

AWartl and 5WET Awrmrd. ■ 
FULLY ' AIR-CONDITIONED 


238 Bepmts. 
Bedtime. 


street (Odd. 

Tottenham C&urt Rd. Tube). 636 0310. 
?r ,Alail _Sst es. John Hurt. THE SHOUT 

njSF ^-r^SS 

.ZZSTooTVg? wir .KSS? 

dfrai Jaac Jones THE tiOME- 

'.ggtS^o Pn S?-p 1 ^e- 3 r^ 1 ^ S - a i& 

•asraai^g'j.ig- 
I' SfcSf Mi 


WESTWARD 


ICJP’BniDOL WGJMS. Mon. to ThiriCl 


11.55- 12 .05 a.m. Closedown (read- Fran< * . feUowed fay wptMfaa- 

^ GRAMPIAN-. 

•LONDON lfl!^ ” I Cwm l wa y M^' C SSL - ” ■ P^_Beaagqmb «x 324 0 too wSf.'St^r OS' m "EK 

940 ajn. A Ptece.Te Live. 945 ““ p» Gramman NewPi^EML. jS*. SSL • Excmnp &C^AwSn Mmicu ' 

CaWh 77. 1020 The Undereea Cnunplan Wdp-. «Jo PuUce* WWartwra. £££* SST • 

■^«“p^ o f^PtttoNem°..iaa0 Ste H&'%SSu: Gramrtaii ^ Faan *S?SS iRo^Eif^Y^R 50 ' ' 

An Aslan Notebook. 1 LOO Popeye. ^ m«L ■ I DOmcr and tap-price -seat C8.7S Inc. 

n*5 Goostrey-A VSHagfc 12.0© GRANADA t YORKSHIRE “'‘SeFTER- OMJ 313.12. 

Here Comes Mmnfle. U40 tun. Etohant Bor- w» Loo}c *r -122| mn The Outriders, uo pm Crieo- a SyomaS? 2 q»> Z'22 

Rainbow. 3240 Sounds of Britain. Qd*. ,U» pm This Car News. Sis .am Be ac h com bers, .iso June as and July 1st «2-ao7ji™-j| 

UM New plus FT i™rf«>T Ca l end ar (Bader Mom end Befinoat a 7. 00 the -ihcomwant -coup ia 


TVITA 
d Andrew Lh»rd mum*. 

mn Bp riwj mu 


^MASTERPIECE." 


at 2-00 (not 


|"» h, a Nn«. Fifin' 
Son.). S-OO and a. 00 . 


PRINCE OF WAUS. 

MonBsiY WJFrthw a*. 

... v '-at B-30 and 8 4 6. 




CC. 01-850 Tteai.j PTud, 445' ffi'o 7%'s- 

f; ■ JM2- Satoroays | feSfe may fa£tuulcod in advance Iw.sflo 
Prog. Mon -Pri. A aH proas. Sat, & sun. 


ACROSS 6 Persuade someone who votes 

1 Conference with war prisoner (4, 6) 

— gosh! (6) 7 Turn up first-class portion of 

4 Killing speed (8) shin (5) RADIO.! 247m- ms. tm iCdwsek cwSaLiWt 

10 Ocean began to be isolated 8 Giri s toe broken up to now • sterwphMfe *~nriir~rt ■ 2® N«ra.- 9iis This vf 1 - -- 

(6, 3) (6) (MW Medium Nnt jf®>- Music 

llUnderground traveHer -or -9 Retiringto upset eastern wolf 

sprouter (5) • Bttraett inrindinf X2J0 mu NtwdmL e ® HK ( tm i> 

12 Wood with leaves potted by 14 Europeans depressed by ue Tony HacMmrn. am km aSaS tr 1 S**?.* 1 _ 

king (4) cheese (6, 4) *“?“ u, w “? Newteeat 7Je sport* dm»t ”£* w^ Bo ^^ JIL if 0 

13 Distant Europeans take a 17 Turn round electrical unit i ‘S 0 *® PB<1 w -- wSwSmm!'naS?*^WiS ate*,... - ^rs. _ 

share (5, 5) : . _ wVikey features (5. 4) . _ „ w«. gri^ 


Pfi hH ilir IB ii il»T Mom 

SJB edtthmo. - 


inn Mr 

MRKT GOSPEL 


07-900 2S78. 
nUI July le 


COMEDY. 

For a HnRtssS 

ALEC 

„ . Sr. MAI 

■tfjEMiEiaHjMs 

OSS': SS^ot^tad 62 * 50 - 


CC. 


1071 -y. 


* 15 ). Scht Time. SJB AC Reports. 548 
vomtt SemxJJiritj. 55S weather;' jc teramnie 
Sr^fS). tews. 2M News. 83S My Mnrtc (SI. I £2 

-4nnric ud Km. 7 JOS Zfm Archers. 7J0 File 

on 4. 209 1 Died In Mt They CaBedl Evua, 2d/s*t£l 
(S). It Paascheodarie:- 1 ReooUectiata br nr- 
. Yhrora of Km tfikd battle tffXsns. 1917. 

Con- 7JN Scfeoca How. 1 ua X a lcWn s ro pe.. *5)i half-a-dozen laughs : a -minute 
1288 no World TVKdrtX. UJtl SECOND HILARIES Yba« UI * 

— - 1 ■■ vtpv nnaMV* c fir 


Pier?' The' story ol{ 
Dims. XL8B A Bote 


SJO." 8 JO. . 

NOW IN ITS 5ECONO YEAR 

~.jom 

VERY PUN NY.** 5- Tel. 


15 Break old instrument before 18 Relative given thousands of Radio g tadadiim lb ” J ^ * 7“ 

teibreak (7 ) ..... ’ NUm * yltfc n? upheaval (SJ am 


16 Go by car round Orient to 20 Two points in category of 

obtain ... (6) stodl <7_) . . 28*^^ ™ 


IDS. M fi Bia e nwei. ^2 *s!iL j joT 
A CHORUS, LINE ■ 




T7A 


12 ... a lot of racehorses show- 21 Jacket for pot smoker (6) | TfLYJ? Radio a mjoo with Radio sojchub 

ing way to parade ground (0) 22 Whip needs a change (6) **« am wwi Radio a wide., us sac NortbeiSa- so. 

24®®°““®^ aware that the RADIO 2 l^OOm and VHP ?***• SF l s i- WsTmira, 
French have a navy (5) 

26 Left one willing beast (4) 


21 Stocktaking specialist (7) 

23 Rich praise for successful 
scrummaging (4-6) 

25 Average design (4) 

27 A fisherman could find tins a 
drag (5) 

28 Statesmen taking to crime as 
an alternative (9) 

29 Two deer— the second one 
lame — impeded ... (8) 

30 . . . one after the other they 
say by doctor (6) 

DOWN 

1 Assume l . . have become 
certain '(8) 

2 Some fight I suggest (4, 5) 

3 Ring soldiers to -sign for tbfr 
future (4) 

5 Fashionable to have aU the 
runners stationed hear bate- 
man (7) 


■ur 

r, 


J.IAD- 


‘ S#t It 


BBC Radio London 


206m and 94JVHF 


w 

- <A 

|d K 3 E£ b S£ 

..OHI. CALCUTTA! 1 


- - COM6DY_MUSICAL HIT 

•^1 LOVE Mr WIFE - 
StarrlBSL ROBIN ASKWjTH 
“ ALL - JUST GOOD CLEAN FUN." 

D4Xy Exarcja. 

. CRCDtT CARD BOOKINGS 930 0847. 

ODEON JtAYMARKET, <930 2738-2771 > 

QHIITS THEATRE. CC. -01-734 1186. 
^ 8JO - 

, FAITH. ' BROOK.. MtCHACL^v AUMHOGE 
. and RACHEL kemfson: 

- - • ' ' In Alan BenafflWa 

■ THE OLD. COUNTRY 

Him and Ptoyers Lonoon Critics Award 
BEST PLAY OF THE YEAR 
Dhactnd by CLIFFORD WILLIAMS 

t93 ° Brii.i 

OASB ENCOUNTERS OF THE THIRD 

PasPlft ‘SSt »»W 

l 1 ™. LIS, 7.43. . Lstn SfaOW Frl. ■ A Sat. 
^gl | qpM..T1.1S p-m. AH MU'nwbi 

:ga Bh.?r-sr6 sum 

RAYMOND REVOEBAR. CC. 01-734 1593 

* 7 Tss. 9 fS5M^^SSS Son -■ , 

THE TOTWAL OF ; . 

Folly alr-condltfOMd 
- 21 * sensational YEAR 

PRINCE CHARLES, tele. 5«r. 417 'ffllf. 
MEL BROOKS HI fc« ANXIETY (A) ten, 

FSJ?-J£I!? 2lf-' s 'S J a2r ,5 LJ 5 > 1s ' *loo- 
K^STLIc^'&r?**- S '*y*V* 

ROYAL ALBERT HALL. 'EM 0212. 

EWORLD'S 7 tM^ATEST ACROBATS . 

THE CHINESE 
ACROBATIC THEATRE ' ' . 

front ■ ■ 

’ " UAOMVNG. CHINA 

CLASSIFIED 

advertisement : 


iOO am Km Summary, sjc Richard rT ^* ' Spea *^ & Loot Stop. £te*n.. 7JB Btacfc 


as*- 986 Showcase. 'ASS Heme 


SOLUTION TO PUZZLE 
No. 3,703 


405 I SSL S ? tSSSt. S T W (S) ' 


(EHQg &IBB3Q E 
f 3 B m Ui B 
i B 003 BBEfaQH 

n □ a s q 
ansaa nsa enacjaH 
a a q e u a 
HaaaEHBnas 
a a h a a h 

BHQHBS ! 

□ Q d n u n 
tiHBaas maamrsBaa 

Q H Q a El 

hejHBqh nQQnaaaB 
h a b a al 
aQanHE BSEssaESGl 


Tieny Wogan isj azr Racine 

tor Tboosm. 

lfUe _i‘* a ^“WK» (Sj. ttl 5 MB wu. 

gpoerri Welk. 1238 P«e Mnnurt OpSi 

f SS a «! Im^lSrtSSS 

^ ^ ^■^ rt nillinn? 52?*^ L>w0 

A^*sa? WaBc (as aaS Off to t ha^Banr? TiOO KevrtL "rjff ‘ •* 

5^V,Fj*L US Spwtt Doflk. 7JX2 sine Today. US.Uy to Ih« Hour (cooUnMtO H 

fStSS is * fttsa sssssaj , »j&^ w-jsss' L 


iSf Si 6 OF oii« 3122 . ;-/ .^^yi|IgblK& b ‘ 3D - -. 


RATES 



Some iflants, not many, have only the' F.t 7 makes a fnssabriot tog'ronnd each ototo r Agativ among the guttata- of the 'house and quite reliable. There are 

[even smell it. I think it most a way of seeling attention just them. In fact; these young this- is important- as the shoots which it has long smotiieredL -flno, heavily pruned plants nr 

_ iite Macrobotrys, when you want to forget them, tentacles are useless. Cut them are - to- become the base of a 1 .tidy it tip, toc latu and too' ft on those old Iron stops at the 

IDEA Chat Community substance of tb* ^ ^Ithe loag-bunched form. It is The Sweet William needs to be back hard and reduce them to a mature plant and will .throttle gently. Hence it- fiowett with foot of pre-war Are escapes m 
tl vr?5 - i -.-j — pi tne scheme should I never easy to be sure where the sown now, just as it is few. After 'three yeari or so, one ■imthar If. allowed to em- -restraint, The next fortnight, many a town garden. The bite. 

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Financial Times Wednesday June 28 1978 

Other Place, Stratford-upon-Avon 

Captain Swing 

by MICHAEL COVENEY 


This engrossing, entertaining 
new play by Peter Whelan has 
reached production in the Royal 
Shakespeare Company's Strat- 
ford studio via a workshop read- 
ing in London last season. Apart 
from its inherent quality 1 , it 
vindicates an important aspect 
of the company's work at ground 
level. Mr. Whelan is not a 
young writer, but he is a com- 
paratively new one, known only 
to me for his collaboration on 
a West End thriller vehicle for 
Margaret Lockwood a couple of 
years back. He has now come 
up with a richly panoramic 
account of the farm labourers' 
uprising in a Sussex village of 
1830. in some wavs, the piece 
takes up the thread of Edward 
Bond’s The Fool, an imaginative 
treatment of the effects of the 
enclosures policy in the North- 
amptonshire of John Clare. 

It is similarly ambitious and 
just as successful. Whereas 
Bond contrasted the poet’s 
dilemma with the more militant 
.outlook of a close friend, a rich 
vein of theatre is here mined in 
the dialect between excited 
followers of the mythical Captain 
Swing, whose letters terrorised 
the gentry, and the humane 
pleas of a village wheelwright, 
Mathew Hardeness (David 
Bradley) to press for basic rights 
before total revolution. 

The local Joan of Arc, Gemma 
Beach, believes that Swing has 
come to the village in the 
broken, gibbering form of an 
English soldier lately in France. 
A couple of stunning tableaux, 
presented as dreams, evoke 
Swing as a Pimpernel-style 
saviour at the head of a fanatical 
army swathed in the Tricolour. 
Swing’s case is argued in more 
realistic scenes by an Irish 
radical (Paul Moriarty); and the 
balance of the action is finely 
held in the mood of a deftly 
painted gallery of farm workers 
who capitulate to his low opinion 
of them by settling for 2s 6d a 
day and celebrating small 
triumphs instead of planning 
complete victory. 

Correct emphasis is placed on 


the non-violent behariour of tbe 
peasants throughout the southern 
counties where the destruction of 
threshing machines symbolised 
tbe uprising. The* machines 
threatened employment but the 
movement was inevitably weak- 
ened by playing • into the 
farmers' hands and joining with 
them to get tithes and rents 
lowered. Mr. Whelan rest nets 
bis comments on the severity of 
the magistrates' courts (so 
vividly and angrily documented 
in the Hammonds’ classic source 
book. The Village Labourer ) to 
a closing sentence ’-for each 
labourer on what became of him. 
Transportation of the body, but 
not of tbe soul, was the order of 
the day. The point' is brielly 
but movingly mode. The play's 
business is the description of a 
village society deciding for itself 
what form its dissent in poverty 
should take. 

This is brilliantly .done in a 
scries of highly charged scenes 
that frequently have a double 
kick, as when the geographical 
progress of the uprising is 
reflected in the convention of 
three local aristocrats— a parson, 
a magistrate and a lady — and 
brought fiercely into focus with 
the lady's demand for safe con- 
duct of her family to Kent. 
Large events are continually 
referred bock u> an exactly 
observed social milieu, whether 
it be that of the labourers meet- 
ing excitedly by torchlight to 
form their committees, or of the 
gentry lining itself, backs to the 
wait to receive mildly pbrased 
requests in a local church. 

Bill Alexander’s meticulous 
production marshals the elements 
of the play with exemplary 
rigour, creating a Series of 
superbly varied stage ' pictures 
strong enough to incorporate the 
fantastical Swing interludes with- 
out undue force. The company 
is uniformly magnificent, with 
Z6e Wanamaker as Gemma catch- 
ing the eye with a' sustained 
display of fevered, perhaps 
foolish, commitment.. If this 
astonishing new work is, above 
all, about the need in . people to 
create their own gods, then that 
is what Miss Wanamaker conveys 
at full tilt whenever she appears. 


Television 






17 


Putting business into perspective 


by CHRIS DUNKLEY 




Mike Scott (centre) chairs Granada's ‘ Nuts and Bolts of the Economy * 




— -v. 

David Bradley, Alan Rickman and ZoS "Wanamaker 

New Gallery 

Matrix 78 

by DOMINIC GILL 

Alan Hacker’s group of voice, piano drone- by Neil Sorrell, in- 
three reeds, percussion and troduced Atemstudie for solo 
piano called Matrix has now oboe — one. of Vinko Globokaris 
been enlarged to include flute, many exuberant studies in 
violin and cello, and renamed breathing and vocal-instrumental 
Matrix 78. Tbe hew players, techniques, delivered with im- 
Judith Pearce. . Duncan Druce pressive panache by Lorraine 
and Jennifer Ward Clarke, were Wood. A tape-piece by the 
once the core, with Hacker, of Yugoslav Ludmila Frajt called 
the -old. Fires of London (n6 Nottvmo. was short and sweet 
Pierrot- Players) ensemble: so it axi attractive canvas of electronic 
was apt that' the new Matrix night-sounds, capable if not 
.should have devoted . tbe wildly remarkable. Thin air for 
whole of the second part, or instruments and tape by Mark 
their concert on Monday night Griffiths (b.1952) had a certain 
to the first London, performance strangeness and simplicity of 
in more than eight yews or. -manner to recommend it: a 
. Harrison Birtwistle s naedusa subtle colour, and a good sense 
first heard , in its, revised “Pier- 0 f shape, which I liked and res- 
rot version at tbe - Pierrot — an -atonal texture lit 

Players Spring Song, concert brief flashes .of tonality, 
on the South Bank in- i»/u- prefaced by a quotation from the 
Medusa is a powerful piece, soundtrack of a National Parks 
40 minutes long, complex lnits information programme. “Har- 
workmg, rich in its resonance—- jj] 0nv see ms to have disappeared 
a link, as our programme no tetL into thin air.” 
between .the taut hard-edgea 


London Choral 
concerts 


early Birtwistle of Trogoedia and 
Verses lor ' ensembles and . .. tbe 
later lyrical style of Death of 
Orpheus or Sitbury Air (easy 
now to credit, it with the un- 
doubted distinction of having 

been booed off the stage by _a , J _ , 

Roy an audience at its French This years London Choral 
premiere). Society's Christmas Carol Con- 

y Both worlds are combined < as cert at the Royal Albert Hall 
in a broader sense they still are will be on the afternoon and 
in Birtwistle's music): the. dark evening of December 9. The coo r 
blue timbres and sighing certs will, be compered by 
cadences of The '• Triumph ' .'of -Richard Stilgoe and the conduc- 
Time cut with the wry, sharp -tor will be Nicholas Cleobury. 
humour of the opera Punch and The Choral -Society's other 
Judu- explosive instrumental concerts in the 1978-79 season 
songs like lyrical bullets, rico- will be: January 20 (Festival 
chets’ between long, poignant Hall) programme to include A 
laments. - The closing pages are. Child of our Time by Sir Michael 
especially memorable: the Barra- Tippett with the Philfcannonia 
live over, a slow, unwinding, calm Orchesrra conducted by David 
suroension. still broken by per Atherton: February 15 (Albert 
cussion gunshot all passion Hall) The Dream of Gerontius 
SDent An exceptionally "fine with -the Philharmonla Orchestra 
perfonnance from the .new conducted - by K^neth Mont- 
Matrix, strong and sure, was gomery: Good Friday, April 13 
directed bv the young composer (Festival Hall) St. Af fit their Pos- 
anri conductor Georce Brown. . -sion with the -English Chamber 
The first part of the evening. Orchestra conducted by Nicholas 
the- • second in - 1 the New Kraemer: -June 16 (Albert Hall) 
Macnaghten Concerts’ British- Belshazzars Feast, with the Royal 
East European . series, focused Philharmonic Orchestra eon- 
briefly on Yugoslavia. " Music ducted by Simon Rattle and July 
fiSn Macedonia.” three- -ffolk -2 - (Festival Ham- Handel s Mes- 
melodies sassily 'transcribed .ftir sioh -with -the English Chamber 

clarinet "and . violin with .cello and Orchestra. 


For years businessmen of all 
sorts complained that television 
gave them a raw deal. Not only 
was there u terrible dearth of 
programmes dealing factually 
with their interests, they moaned, 
but they were consistently mis- 
represented in drama pro 
RTammcs which invariahly 
portruyed businessmen as a 
crowd of unprincipled, scheming 
money grubbers. 

This matter of being calum- 
niated in every sort of drama 
from soap opera to prestige play 
is something that they will 
simply have to get used to. It 
was not started by television, 
and what businessmen should 
realise is that teachers, soldiers, 
scientists and for that matter 
journalists all consider them- 
selves to be lampooned appal- 
lingly by television. Taxider- 
mists and musical fountain 
operators feel the same. 1 am 
sure. 

This is no doubt partly because 
writers do. indeed, invent a lot 
of bad guys in all professions, 
there being more drama mileage 
in bad guys than In good guys. 

But it is also because when they 

do portray good guvs oven-one .. _ _ x . . , „ . „ . 

promptly forgers rhem Shake- they ranged from the bitty but television producers. Of course alternation o: coverage. Since it 
speare did actually outnumber perpetually interesting (Hou? To there will always be some people is known that 1TV have always 
Shvlock two to one with 'Vntnnio ,tc Vour ^ >lcn Boss l to the who will refuse to allow society pressed for this and the BBC 

and Bassanio but try asking the worthy but tedious (Nuts And to stand still, and will insist have resisted ir. the BBC are 

next 10 people you meet to name Bolt * seminar) there was not upon accepting any challenge usually cast in the role of 

a character from The Werchon! onc lhal was a waste of time. which presents itself, whether it villains. 

of Venice and see which one Yu I television is wasting its be the direct route un Everest Yet it seems to me that the 
they remember. unique characteristics. Although or eradicating want from society. BBC have a very- strong case. 

In that respect, then, business- tJie medium is an wonderfully That is really what Nigel They argue that whenever there 
men will simplv have’ to resign wetl suited to multidisciplinary Calder’s Spaceships of the Mind is duplication of sports coverage, 
themselves to ’equal treatment discussions and subject matter, seems to he about. The the audience proves its prefer- 
with the rest of us. But in the b ei°S able at tbe flick of a pro- admirable characteristic of Part ence by switching in much larger 
matter of factual programmes duction gallery switch to change 1 of this BBC2 series was that numbers to the BBC than to ITV. 
about business they no longer stance, or mood, or approach, it it did have the scope to take and sure enough this occurred 

have grounds for complaint, has allowed itself to settle down m both man’s instinct to keep again with the World Cup. 

Such programmes are. if any- into the same old rigid divisions conquering and colonising new Figures so far to hand show 
thing, becoming too common. In which you find so often in news- territories, and also the fact that (according to the BBC) that 
the week under review we had papers, magazines and even the colonisation of space is in Scotland's first match was 
The Money Programme from books. Thus business is business financial terms (gross interna- watched bv 16m on BBC1 and by 
BBC 2. How To Be Your Oum and all the rest farts, philosophy, tional product or something) 5.5m cm ITV and that the last 
Boss from BBCl, What About all tbe humanities) is all the very different from the colonise- two were watched by 17.5m on 
The Workers from Thames, a rest, and never the twain shall tion of America. BBCl and bv 7m on ITV. Figures 

documentary about industry in meet. Our business programmes from ITV do not sbow such a 

South Korea under Granada's Every one of these pro- cou id do with a little of the large gao. but even they have to 
Nuts And Bolts Of The Economy grammes rested on several tacit breadth of \ision in Spaceships admit that many more people 
title, and the first of six Sun- assumptions, notably that matters Q j the Mind. consistently choose the BBC. 

day morning seminars under directly involving the economy Before the World Cup This being so. the idea of 
the same title. — industry, commerce, invest- disappears from view for another enforced "alteration'’ is 

You could also see John Swin- ment — exist independently of four years there is one thing obviously not as equitable as it 
field’s lively Enterprise in the the rest of life. Furthermore which should be said about the sounds. On the contrarv. the idea 
Anglia area, and at different they all seemed to assume more duplication of coverage. The would seem exactly like making 
times of the year Thames’s or less explicitly that everyone popular view, understandably t j,e more successful of two hi°h 
Time For Business would have agrees that British business is enough, is that it is absurd for street °reen wooers close down 
been going out too. in a bad way, that British B BC1 aDd ITV to broadcast nn alternate davs in order to 

A lot of recent programmes society is therefore in a bad way. identical pictures simultaneously, force customers to use the less 
have been about small busi- and that more growth would be Last week's NOP poll said that successful 

nesses: in How To Be Your Own A Good Thing and (tacit assump- 53 per cent of people felt that A « the 'underdoes it is quite 
Boss, for instance. Christopher tion number three or four) identical coverage on two chan- understandable that ITV should 
Brasher and Peter Spry-Leve^ would improve the general nels was either a - bad ’’ 0 r a pres s f 0r alternation since it 
ton hunted down a collection of quality of life. . " very bad " thing. It is the next allows them to appear sweetly 

refreshingly successful “small It would have been fascinating step . however, on which a little reasonable while making the 

businessmen ranging from the to see the reactions of any of car e is needed. BBC seem pig-headed. But TTV 

pocket calculator man Clive the participants in any of these The same poll said that 82 per can not at the same time talk 
Sinclair to Joseph Radley who programmes to an interruption cent thought the BBC and ITV ahout “ fairness." If most sports 
sells holes to the big elec- from behind the cameras from should be "made'' not to show fans want to watch big sporting 

Hnfefjoe™ 8 Ae A rtZi^n' X identical programmes. This again occasions on BBC. and if the 

Holey Joe ...TTieAfoncj/ Pro- <,r a lighting technician (not confirms the common view BBC 3re willing to go on 

* e businessmen fi (U ^ »?»* pressed in 1h e Press and else- televising them, in what way is it 

rereirlvwnn an award! and h ‘SlrSmSrK where ' and lhe conclusion that “ fair ” to force tbe BBC to hand 

“d d op! T »r u ,‘i , inpii those °™ 10 

of a new studio discussion. a sec ond refrigerator, would ,0rcea 10 ad0pt sorae simpIe ITV * 

The two Nuts Amt Bolts Of prefer more holidays to more 
The Economy programme were m0 ney, and considering one 
more concerned with national thing and another (Britain's 
and international economics, symphony orchestras, for in- 
Tuesday’s ‘episode about South stance, or perhaps the com- 
Korea used the highly success- paratively low murder rate) 
ful technique, pioneered by really didn't feel that this society 
Granada, of taking represent*- was quite the abject failure that 
tives of British industries (in was being implied, 
this case shoes and cutlery) This is not to suggest that 
around foreign factories to com- television should give up all 
pare and comment on methods programmes containing criticism 
and conditions. The Sunday of Britain’s condition and pro- 
programme, featuring a discus- mote national complacency in- 
sion panel of 14 heavyweights stead. It is to suggest that the 
ranging from Hugh Scanlon and quality of life has a lot more 
Joel Barnett to Lord Keartnn and to it than arithmetic, and that 
James Prior, was concerned par- the worker on the shop floor, 
ticularly with investment What in the guard’s van, on the lec- 
About The Workers looked at turer’s rostrum or wherever he 
British co-operatives from may be. senses It. 

Walsall Locks to the John Lewis The negative evidence of tele- 
Partnership. vision's business programme sug- 

None of these programmes was gests he realises it better than 
of low quality. Each was some of our industrial leaders 
proficiently made and although and better than some of our 


Churchill, Bromley 


The Woman I Love 

The Churchill is a new theatre Queen Mary is austere: Walter 
in the cemre of Bromley. It is Mo nekton is legal: and the Butler 
comfortable and conservative gcis to open the door on lo an 
like its potential local customers, impressive drawing room at Fort 
Its productions are cautiously Belvedere more often than any- 
tuned to the market, too. On theatrical Butler for a genera- 
Monday there opened The tion. 

U'omun / Lore, a new play by Vet this rather provincial 
Dan Sutherland about the evening is redeemed by stronger 
Abdication crisis of 1936. Judg- than expected performance* 
ing by the nudges in the house it from Martin Jarvis as Edward 
seemed like only yesterday to and Holly Palanee as Wallis. At 
i many of The audience. Ibe start they banter away like 

You need a really good excuse young married? in a Television 
to write more about the most comedy series but the characters 
; exalted soap opera of the ccn- grow. .Jarvis has the advantage 
tury — a man's choice between a of looking passably like the 
crown and a woman. In the King and also catches his almost 
event Mr. Sutherland has pro- Cockney drawl. He is especially 
duced an apolocv of a play, which Hood at bringing out the selfish 
is mostly remarkable for its spoilt child. streak — making 
j lack of fresh insight. The only Baldwin stand during their 
skeletons exposed are those of encounters, bawling out the 
the actors coning with the Butler, switching quickly from 
(cliches in a thin script. deiection to jubilation. 

Not that you can write about Hollv Patancc is too pretty for 
“David” and "Wally'' and Simpson, but captures the 
bigoted Mr. Baldwin and dutiful discreet control she exerted over 
Queen Mary without taking sides. hl ^- „ , w . . , 

and Mr. Sutherland adopts the . The rest of the cast had a bad 

papular view of the time that the *L me on J i _\V Cir w 1 ?, ve V s as 

King was a weakling and Mrs. Monckton and Ellen Pollock as 

Simpson an ambitious Yankee Q l,c £ n j^ ar >' ,,,er |3 , °5 •> P as j 
honked on being Queen of ^ iar k- .Th° set looked solid and 
England. The rest of the small Francois Landry s direction was 
cast /nil into line — Baldwin is 

dogged; Bcaverbrook blusters; ANTONY THORNCROFT 



Martin Jarvis and Holly Patance 


Leonard Burl 


Florence 


Marrio musicale 


by WILLIAM WEAVER 


The 31-year-old Sicilian com- 
poser Salvatore Sciarrino began 
attracting attention almost - a 
decade ago with works per- 
formed at various festivals of 
contemporary music and then 
over the Italian Radio. His 
music has been written mostly 
for chamber formations, and it 
is notable for its exquisite instru- 
mentation, its rarefaction. These 
are not qualities which are 
effective in the theatre, and, in 
fact, Sciarrino's stage-piece. 
Aspenz, given its premiere at 
the Marrio musicale this month, 
was notably drab and pallid. 

Subtitled “ singspiel,” the piece 
is hardly what we would think 
of as an exemplar of that genre. 
There is very little singing, and 
the music is confined generally 
to accompanying, with a discre- 
tion that often fades into near- 
nothingness, a theatrical work 
devised by Giorgio Murini (also 
the producer) from the Henry 
James novella inspired by the 
story of Byron and Claire Claire- 
mojiL Marini's name has been 
mentioned before in these 
columns (he was partly 
responsible for an excruciating 
Satie travesty in Rome two years 
ago). He is good at creating 
stage-pictures — and for Aspertt 
he was much helped by the bril- 
liant designer Pasquale Grossi — 
but he is perversely opposed to 

acting. The scenery does most 
of tbe work. Tbe tableaux are 
drawn out, and such action as 
there is moves with excruciating 
slowness. The words are spoken 
in. a dreary sing-song, with- 
extended pauses in unlikely 
places. Under the circumstances, 
it was hard to give much thought 
to Sciarrino’s remote glissandos 
and wind-sounds (his six 
musicians were deployed in tbe 
royal box of tbe Teatro della 
Pergola, behind the audience), 
which, for that matter, were 
often -hard to hear. 

I must say. In all honesty, that 
the above remarks apply to the 


first act (of two) of Aspem. It 
lasted over an hour, and the 
Pergola had turned off the air- 
conditioning. There are limits of 
the discomfort to which even a 
critic should be subjected. Like 
a number of others. 1 left the 
tbeatre before the work's end. 

At the Teatro Comunale. 
Benjamin Britten's ,4 Alidsummer 
A'ipht's Dream fared much better. 
Britten expressed himself firmly 
on the vexed question of trans 
lating operas; he believed they — 
and his own operas especially — 
should be given in tbe language 
of the audience. All very wed 
but no translator (even as gifted 
a linguist as Paolo Ojetli) can be 
expected to produce a singable 
Italian text anywhere clnse to 
tbe Shakespearean original, 
which Britten handled with such 
delicacy and respect. So — thanks 
to Britten's tactful writing and 
to the singers’ admirable 
enunciation — the text was totally 
intelligible, but not very interest 
ing. The rustics came off par- 
ticularly badly; and in the end. 
this Sogno di umi notte di mezza 
estate was too somnolent, just 
within the boundary of boredom. 
Bruno Bartoletti conducted the 
score with great sensitivity and 
accuracy, and the Florence 
orchestra played well for him. 
confirming its improvement this 
year. 

There were also some excellent 
singers. Siavka Taskova Paoletti 
was an ethereal Titania. and 
Margherita Rinaldi was a moving 
Helena. Among the men. Eduardo 
Gimenez sang persuasively in the 

part of Lysander. while the 
veteran baritone Eolandn 
Panerai. in excellent voice, made 
the mrwt (but not too much) of 
P-ortom’s Ulbwe Sant'whi 

desiened fanciful costumes and a 
blossoming bower, capable of 
many, ranid transformation*!. 
Oinlin Chazalctle'i shrewdly 
exploited the versatility nf this 
setting, and moved his artists 
meaningfully (apart from some 
exaggeration with the comics in 
the last act). An enjoyable, if 
uot exciting, performance. 


There’s only one way to take Glenflddich! 



You can take it straight. 

Or with a little plain water: 

But do remember that you're 
tasting no ordinary Scotch. 

Glenflddich is a pure, single malt. 
Distilled in the ancient way, in 
traditional' handbeaten copper stills. 
The result is, perhaps the finest 
whisky the Highlands have to offer. 
Take it slowly. Take it seriously. 
'Glcujhidicli in Gaelic means 
7-allcy of the Deer, * 





18 



UNA NCI A L TI MI'S After the Rhodesian massacre: 



Account 

Opii 

•First l)cil 
Dealings lioi 
Jun.12 Jon. 
Jim. 26 Jul> 
July in Jui> 

* " New lime 
fnm 9.30 a.m. 

"Worried I 
certainties, i 
hang fire at 
Account yes 
was a furt 
both British 
With few 
scheduled t 
■were reflect 
trend in shi 
not only in 
home. Infl 
pressures 
registered, 
led to th* 
showing lo 
early sessio 

Views th 
was neCMSi 
todays cal 
tan E«heq 
wore not 
pressure r 
ennsirierab’ 
larked sul 
afternoon 
shorts atln 
eventually 
close a m 
the day. 
followed 
their lossf 
Equity 
with the 
accordant 
Selling wi 
— bargain 1 
the toWP 
Account 
genuine 
drawn by 
The FT I 
index wa: 
calrulatio 
easier at 
Aoril 17. 
ratio in 
widened 
Influen 
back in 1 
tions Ids’ 
while re 

as Soutl 
1BS7, an 
‘ 1987 (bo 
■1 down 
First-tin 
ful in 
stocks, 
canitatl! 
.Allied I 

at 90p. 

cent sc 
11 per 
Notal 
of acti' 
ment c 
the pr 
finally 
per cc* 
sion fa 


BRACKEN HOUSE, CANNON STREET, LONDON EC4P 4BY 
Telegrams: Fimuitlmo, London PS4. Telex: £$341/2, 883887 
Telephone: 01*248 8000 

Wednesday June 28 1978 


An unfair way 


Gloom 





By QuentiL^ 


i ->V; ^ ‘ ■ ?}■ ■■ , ;■?+ - - \ ' “ * r i 

V^'X r ■'* >;-V ‘ - r V'-y "-'' \ " ]■■■-. ? 






to tax 


HE MASSACRE of British missionaries died. The situation 
missionaries and their waS well symbolised by the. lack 
families in eastern ° £ P™? »? attended »ejast 


families in . eastern ^ 
Rhodesia has provided a brutal pE H " 


of 


the Rhodesian 

THE ANGLO - AMERICAN income which does not arise R nouesia nas primueu a unuai p^j-ijanjeQt ^ jts white- 
double taxation treaty, which in the state. It is contrary to reminder of the continued d om j na ted form on June " 20. 
has involved several years of the arm's length principle which failure of the transitional There was no sign of the normal 
painstaking negotiation by the is followed by the U.S. Federal government in Salisbury to re- guard of honour, no fly-past by 
two governments, has now been Government and which is em- duce u, e slaughter in the the Rhodesian Air Force- The 
undermined by the U.S. Senate, bodied in the model income tax war w President arrived at the 

Last week the Senate failed to convention prepared by the . ♦„ Parliament building Jn his 

muster the necessary two-thirds Organisation for Economic Co- * nd, - cnmu j ate depths to age j n g Rolls-Royce with only a 
majority and thus the treaty in operation and Development; which the war has sunk. police band and a small crowd 

the form approved by the gov- that convention specifically . But if the killings may have 0 f the curious to greet him. 
emmeots was affectively killed, applies the arm’s length prln- £j ven ^ir^er ammunition to ^ atmosphere of almost 
Yesterday the Senate voted on ciples to subsidiary levels of the backers of toe internal pa 2p a 5] e gloom reigns in 
a revised version, without the government. settlement in Salisbury, they 

controversial Clause 9 (4) Article 9 (4) was designed h3ve *j! e e ® ec * weaken- 


Salisbury. Cafes and restaurants 
are struggling to do business. 


which deals with the unitary to exclude from the tax base of | ns the alliance between Mr. ; linp }, t i m p sheets of what 


system of- taxation. imposed by ihe slates fusing California as 
California and two other states, an example) income of UK cor- 
and approved It by a substantial P o rations or their affiliates In 
majority. But for the:; British third countries which have no 
Government and . British in- connection with California.! 


Ian Smith and the internal 
nationalist leaders. •• An event 


has always been a bustling, if 
incurably provincial, capital are 


„ - i : l . . iiiuuauvi j uiuviuuaii 

such as the massacre is likely ^nngely bushed. It is a white 
further to exacerbate the frus- reac tion to the high hopes which 
trations already felt by both ^ 



Bis flop Muzorewa 




Tt'te-to fcft 

sfalemite that Mil Jp^13i»h^^fc/#ngabe.' . ; . r y ' , ; . .. a ''-jepm-Jttferft jexta|£g 
and Mr. Sjeplran to r : the v guerrffl* 

iomt . 'Anglo-Ajiiaric^;;Yoyfe^ 'iotertial settiejjtetii • ««P - -.'deefeii 
negotiators* hs,Ve retained -iiy'tfirles; press-on^&out^ a cpBaysf 

Salisbury- To sdinfr es&ent tap. ifexebce? Waiisi - ^ • tfrf fc 

may take heart froih "It The 1 ; «re^ jidvancei esoduy hntf a - refusal/ j 

Anglo-American strategy seen^r-be-' strange -elections.- Because: to/ - the becittr^ 

to he to keep open the opti ori^f ^eneed tphohltbe^ j nearer Decea 

of an: all-party edaterenp 2 * prbmisedtdate^'of majority -approach^ 

the hope that tiie" "modntinfe'ride an Decehaber Sl; Q^.\^ sian^w^ betp$ 

problems of the Interim Gow- -^>e- donducte5-'>d : itlie Vparty-.- Im^;ti*etr-Jdydsf0a? a WackaS 
emment will' force its inemherg^^ysf^, rather: ^han; . 3>y ;cmr-' The - state, of - tiie . 
to fall back on tbat solatioa;^ sti^bcies; ‘wbX^.- . woidd -fem; 'already critical, : anil 
rather than pressihg- • -be^ ^ diavrs tip-^mn: 

unilaterally: The drawback i£ jSerifor Goitornn^rjsbhiw^^ 
that in the meantime tirfelhfficate that r -'thegre‘' :wlR;^&e ^ 
confidence, and therefore the^ no .reglstratiph -iwtwess. .eitheitf. 
demands, of ftfr. Nkomo and &ecause ■ tsajms' 

Mr. Mugabe of the Patriotic amid . become^ ithe- taigets vbf | 

Front are growing. Mr. Nkoiuo -guerrillas seek|pg:to..dlsrupt fbe^- 
has declared that it is too late process. A system will -havei te. 
for all-party talks. Mr. Magabe^^be ; .> devised - hf. proyaiig._:tijai-. 
insists that the entire , interim' Voters are -.18 ; ^TahtL: 

Government should be allowed " uRihodesian ' dti?ercs. , cotErblned .' 
to attend only as. members .of -^dth some Way bf 'dip^ta^;ibeu: ; -' 


. — -• — r— UUllfmuuM "»“4 . . _ - , - . ' : n greeted the transitional agree- 

vestors Clause 9. <4) was the Opponents claimed that this was black a n<J 'white participants in ment j„ March: black and white 

It onl, iHus- fSSS^ ^seduces by fat^esana 

companies operating in the UK; to tax companies on w’hatever ti-ates once more the failure of the settlement to wind down the ® ne cars ' squatter outside way talta between Bntam mid -TOnt.tiiem V0 ^S. .-A 

some have srid that these con- There were the black pa rtners-prin cip ally and bfa«* f^ation Mdth tte Ft<mt ; : ^ 

cessions were far ton generous. tii-it if fho AHminic. Bishop Abel Muzorewa and the ^ i ac lc of taneible benefits interim Government of jjr. Smith seems to . be. ^the.-ibroes t» . ;tfta 

Ndabaningi Sithole— to £ pin the first p^ipation of P la y jQ 3 games talking to ^each member of the interim "Govern- means that s>oM^ wi«:; ; lMve ■ 

effect a ceasefire. To the blacks black i ea( jers in Government ot fj^ when^ they shomd^ be mentJn0St receptive to the idea" to protect po^in&stotiqus, ^ 

The depression is made worse 
by an air of unreality. Politicians 
talk about de-escaJating the 


cessions were far too generous, suggestions that if the Adminis- Bishop 
But they were justified on. the tration wished to impose such a | R £ v - 
basis that UK companies were restriction on the states, it 
to be relieved of the unfair and should introduce a separate Bill 
onerous system of unitary taxa- f or purpose, rather than 
tion. include it in a double taxation 

treaty. 


Withdrawal 


it is a bitter example of the 
double standards both of whites 
within the country. and 
of the international corn- 


talking to the real guerrilla 0 j a renewed conference.: .He \va ^ fop Safebery Governaneiit 
commanders. ji as admitted that it is " a : open to a cdnr^"'"o£ ; iiBtxmid8 7 

Certainly there has been little wea kness of the regime that it tion. ^ 

spontaneous demonstration of 


The chances <v^-,sudi-an 


of the international com- ... th ndlitarv 51,00131160115 ae “ oasl ™ uon _ ot has no strong represehtatiwai^^ectiioo appeaouig^ ^ free an^l fait 

munity. The missionaries were ^ ma J h, \ sa ^ e P^Hc support for the settle* of tIje tribe, .^.S^5dS5Sf^“ 

killed less than a mouth after cSre fiJres Businessmen meo1 £ron, J blacks They have orer whe’--’ 

the killing of 22 unarmed vil- conerarotat^Semselves on the rather decided to wa,t 6X16 Nkomo. 

lasers at Dombnaham. a com- SSperaSScoeST"™ ™ • ° new « by results. To date they have ^ ia 


The appeal to states’ rights. * .. .. coinmami issues uiouhuub fMT _ hiankc Th«v v<»wp “7 -*v, - ■ r 

What happens next is not at clearly had a greater impact casua,t ? fibres. Businessmen ratier decided to wait and judge : ' T* 1 ® rela tively heathy popu- 

all clear. There will be strong members of the Senate than the < ‘be kilting of 22 unarmed vil- -v, — „„ th» ra^er oeciaeo to wait ana ]ua 0 e Nkomo. However much 

pressure from the British side Administration had expected. 


urban, areas and white’ 



iucaauic uum uie dhuw aiu« nuuuiuauauuu iiou . uu-giicmuvuucaa ul u>o non nt l 

to re-negotiate the entire treaty But the wider danger is that -* U /H outslo 5 SaI| sbury ministers, whose very 

and this could include with- other countries, especially in itsel f- 0n ^ at ncc 251011 - reports comp ii ance ^ daily losing them 

drawri of some of the conces- the developing world, will he of the killings were censored in their own black musr doudi . y ^om .to Ve«' 

sions made during the negotia- encouraged to adopt the unitary the military authorities, be- t 0W1JS hipg. The military censors ^ ® P ^ , j ^ ’ M r - Smith « loi*ed lnt a tbe | Ooldri^ ’-^ stiH - by-fai sirashf arT 1 ! 

tions. A further period of uncer- principle. It is often argued cause it was Rhodesian troops mwn fteir hoUJ on aU but have Mr W n nM W J J ^ W 

tainty is inevitable and this can that multinational companies. *bn were responsible. In the j n 'f nrma ti 0 n on the war. to the 1 ?* ) r ov ff 3e £ t m the general lot with his black partoers. 7-. e4<wjon hone fop a noli of porting Mr' 

hardly be good for the free flow through the transfer pricing case nf the missionaries, the extefrt of banning statements ^ “ack population. Bubop Mtiwrewe aisnee 

of investment between the two mechanism, can decide for Rhodesian security forces pro- t out in thp names of the ir Disbandment of the hated any agreement to reopen negO; ^ jeaCT flO pg tfcg-e 

- — — ■ • s where many tiations that - include tbe AS no ae-eacaifiiLKMi or toe war^ 


countries. 

The significance of the bulk of their profits in one 
Senate's action lies not so much country rather than another; 
in the immediate damage that on this view national tax 
will be caused to British com- authorities ought to concern 
p antes as in the precedent that themselves, not just with re 
has been set. The unitary system ported profits in their own 
imposed by .California and country, but with the earnings 
followed by Alaska and Oregon of the parent company, 
assesses the tax payable T>y' a Transfer pricing can present 
foreign company operating genuine tax problems, but most 
within the state not on the basis tax authorities, including that 
of the actual profits earned in of the U.S., have powers to 
the state, but according^ to a reallocate income between a 
formula which takes into subsidiary and. its parent to 
account the worldwide opera- achieve results which would 
tions of that company. The have obtained in arm’s length 
formula involves three percen- dealings. This is a more effec- 
tages. the ratio of California tive way of dealing with any 
turnover to woria turnover, distortions caused by transfer 
Californian assets to world pricing than a general exten 
assets and Californian payroll sion of the unitary principle, 
costs to world payroll costs. It is in the interests of the 
These ratios are then averaged U.S. and the UK that the tax 
and the average is the percen- treatment of multinationals 
tase of the company’s world- throughout the world Is fair, 
wide income which is subject to and the double taxation treaty 
tax in California. was to have been a model fnr 

The Californian approach has other countries. The damage 
been widely condemned be- caused by the Senate’s action 
cause it subjects to state tax needs to be quickly repaired. 

Moscow’s bold 
on Aden 


uiecnaui&iii. uui ucliuc i ---- — - ; . . ■ pur nut in tnr iihujcn hi men ■ 

themselves whether to take the I V| ^ e « facilities for maxi mum new Bishop Muzorewa protected villages 


this kind of thing goes on all 
the time, except it seems to be 
more news if it is white people. 


press coverage. As Bishop and Mr Sithole " rural blacks are made to live 

Muzorewa declared: “I believe Jn th ; dying Par]iament itself under military observation is 

stalwart members of Mr. Smith's one important move being 

Rhodesian Front bitterly sought by the nationalist parties 
attacked the transitional Gov- to the Government. This is 

emment for its lack of progress, likely to be strongly opposed by 

Back bench members accused the military command. The fact 

the Executive Council of “sit- that military censors can sup- 

ting on their collective press the political statements of 

posterior” failing to effect a members of the Government 

ceasefire, making unsubstan- would suggest that the 
tiated claims about their politicians are unlikely to .get 
contacts with guerrilla com- their way in questions of 
mamJers, and attracting crowds security, 
to their meetings only with As for the urban black popula- 
offers of free bus rides, “beer tion. clear moves to abolish 
and bribes.” There was almost racial discrimination are 
equally outspoken criticism probably needed to convince 
from the handful of bl3ck MPs. them that the settlement will 
of the failure of the Govern- lead to a genuine transfer of 
meet to commit itself to abolish- power. Although the Land 
iny racial legislation as repre- Tenure Act is widely expected 
seated by the Land Tenure Act. to be scrapped, no mention of 
let alone to act against the it was made in the State Prest- 
ciFoctive economic riiserimina- dent’s speech at the opening of 
tion which exists throughout parliament. Advocates of 





independent bbsefvers^are -more bhly a; fraetiSii 
sceptical , . . <fouta!mg \ whether .^-^SaaitwsB .trajjafflog^a^ 
;bal£ of "'toe . ;esrimate^.Y »J5 m credltetf W^tb 

• ■yotere will tem ouL Even tiien, 

defenders of tiie internal -sett} e-.‘ -■ ZANLA- critaH 

• m«nt argue,ebkjefc gwenMiesit ;b^^;^f r Bfezsjm 
J.wafl be 

I ieotdd press aheadAwMi te gfratg. Internal settee* 
tion, unfettered a by -^te^Vwn- 
census requirement ; Wf - - the - ^ 

teansitional . .. Gpvecttmea^.i^: • fi: 

Lsuch an extent teat q^port. 


Chief Chi ran 

I As far as I am concerned there 
is no part in the war for the 


fobteiei^ ihdapable 

absolute majority. The party 
list system of proportional rep-, JSrSSL 

resentation will aHow nrinori-' S^can SlvSv 
ties such as ZUPO, led by the 

tinrd black P«ta«rt s in the : -Mr. GrS ahi m 

00 S6ubt emphasising-^ 

Mr. Sithole s branch of ZANU longer Mr Smttii 
a much larger showing than tee colleagues postpone h. 
constituency systm, and - the ^- weaker their pos 

„ . , existence of a Mode of. 28 be." riirnuudn^lv nh»»n 

ernment to talk to the external 5tr oke of the pen since there pertinently, it would be seen whites, likely to' be - solidly «Snti? a i^Lt ‘ . X?? 

leaders of the Patriotic Front, are 57 related Acts to be as an admission of weakness. Rhodesian Frontr^neans that Government wm unwe 1 

Mr. Joshua Nkomo and Mr. amended. Their opponents Thus acceptance of the con- Bishop Muzorewa, to gain an of the sort at cha, 

maintain that it will happen ference could be an electoral absolute -majority, must wm 51 m win hiU «m 

mment is in rfputh hlnu/ Mr Cmith ■« «,n. rn,+. ,i. n rro ij’ii' ■ -• . - 1 . - 1 


Rev. Sithole 


Rhodesian society. They also caution argue it is not some- Patriotic Front would be 
called for the transitional Gav- thing which can be done by a reflection on bis integrity. More existence 


Mr. Joshua Nkomo 
Robert Mugabe. 

For once, the 


Parliament once a 


I killing of children — black or would appear to reflect the feel- power 
white.’’ 

The frustrations with 

i internal settlement had become declared that the black counsellors are 


a black government is in death blow. Mr. Smith is un* seats of theTS avaiTable to him. than concenSto o^ia 
. so that it would be better likely t0 want to sacrifice his That requires more than 70 per Sfr/ 


ingt of tlie general black popula- to scrap the Act now and claim current partners, moderate as cent of the votes, which few m«tbones them miicTi' 
the tion: the black taxi driver, who the credit. So far the cautious they are, simply to get Mr believe he can win. ‘ - £nv 

in the ascen- Nkomo into Iris Government Three interrelated - . worerew».K.an»»a 


THE DEATHS of the presidents 
of north and south Yemen 
within days of each other de- 
notes political turbulence on a 
scale exceptional even by 
troubled Yemeni standards. It 
is in marked contrast to the rest 
of the Arab world where in the 
last few years assassinations 
and coups have tended to be the 
rare exception rather than the 
rule it was in the 1950s and 
1960s. It reflects the fact that 
these two poor countries are at 
the heart of tensions affecting 
the conflicts between East and 
West In Africa and the Arabian 
Peninsula and the Indian 
Ocean. The replacement of 
President Salem Rubai Ali in 
Aden by supporters of the hard 
line party leader. Mr. Abdel 
Fattah Ismail, must strensthen 
the position of the Soviet Union 
in the area. 

Political obedience 

Although the regimes in 
north and south Yemen have 
been somewhat different in 
political complexion, it has been 
a constant tberae on both sides 
that one day they should unite. 
Against this becoming a reality 
without a physical takeover by 
one or the other has been the 
fact that north Yemen has for 
Ions been dependent on Saudi 
Arabia for financial aid in re- 
turn for which political 
obedience was expected. 

The south by contrast has 
been, since independence from 
Britain in 1967. under the 
rigorous control of the only 
openly Marxist* Leninist govern- 
ment in the Arab world — 
through a single political party 
now known by the ungainly 
name of United Political Organ- 
isation-National Front. 

North Yemen accused the 
south of responsibility fnr the 
assassination last Saturday of 
President Ghashmi who was 
close lo Riyadh. This was denied 
by President Salem Rubai Ali at 
the time, but since then he has 
been accused by those who 
deposed him, notably ihe party 
chief, Mr. Abdel-Fattah Ismail, 
of haring been personally 
involved- The real reason was 
more probably a straight power 


struggle between two politicians 
who are known to have had dif- 
ferent approaches towards south 
Yemen’s role. This is indicated 
by the reason given sub- 
sequently for bis execution — 
that he was trying to replace 
rule through the party by per- 
sonal control. 

The differences between the 
two men and Mr. Ismail's vic- 
tory are crucial pointers to the 
future. Mr. Rubai Ali followed 
a pragmatic political line which 
was aimed at attracting finan- 
cial aid to this destitute coun- 
try — even if this meant improv- 
ing relations with Saudi Arabia. 
Mr. Ismail favoured putting 
ideology first, to the extent that 
south Yemen has been actively 
supporting the Marxist govern- 
ment in Ethiopia against the 
Moslem rebels in Eritrea. 

The immediate impact of this 
shift leftwards will be on rela- 
tionships on the Arabian Penin- 
sula. Progress towards Yemeni 
unity is halted, and the presi- 
dential council which replaced 
the late president has already 
broken relations with Aden. 
Saudi Arabia cut off aid to the 
south last October clearly con- 
vinced that it was wastine its 
time trying to lure Aden into a 
more moderate line. Neverthe- 
less Riyadh will be more con- 
vinced that the encirclemem it 
dreads by radicals is speeding 
no ?nd that, more than ever, it 
needs the F-I5s promised — and 
not to fight against Israel. 

The Soviet foothold In Aden, 
now reinforced, could hardly 
be a more strategic position. 
For between south Yemen and 
east Ethiopia and the rest of 
Africa lies only the narrow 
width of the Bab el Mandeb 
straits. These control the 
entrance «to the oil lanes which 
eventually pass through the 
Suez Canal, and the access to 
Israel’s southern port of Eilat. 
To the east, the Soviet Union 
now ha; an assured port of call 
from which to patrol the Indian 
Ocean and the entrance to the 
Gulf. Mr. Rubai All’s replace- 
ment effectively provides a 
strengthened link for Moscow 
between the conflicts in both 
Afnca and the southern regions 
of the Middle East 


evident well before the ministers representing him had dant. 


MIN AND MATTERS 


™uu,u uuu ras ouvernmenr. xnree interrelated • events be a capitulation, rath 
He certainly does not want to could yet force the transitional” place of negotiation. 


Third man in 
oil row 

The multinational oil companies 
must be scratching their heads 
over the curious combination of 
forces lined up against them 
over their alleged sanctions- 
b us ting in Rhodesia. Both 
President Kenneth Kaunda of 
Zambia and Tiny Ruwland of 
Lonrho are threatening legal 
actions against the companies. 
They have been joined by Jorge 
Jardim. the former Portuguese 
minister, who has published a 
book in Lisbon that claims to 
tell alL" Jardim’s motives are 
startlingly different: he says he 
wants to vindicate Salazar, 
whose adviser he once was, by 
showing that Portugal’s dictator 
followed a consistent, even- 
handed policy after Smith’s 

UDI. 

Jardim has been in London, 
giving evidence to Thomas 
Bingham, QC. who was officially 
appointed last year to look into 
the allegations against the oil 
companies. He leaves tomorrow, 
and while here has been in 
regular touch with Rowland, 
whom he first met in the fifties. 


of Arab-British Understanding 
found the film pro-lsrai-l. fn 
particular it objected to the 
narrator’s comment that in 1948 
the armies of five Arab stales 
"invaded" the state of Israel. 

CAABU wanted a formulation 
talking of the "occupation of 
the area allocated to the Arabs." 
But Broad told me the changes 
made were "extremely snull 
points of emphasis” and largely 
for reasons of style. He insisted 
that ail changes had been made 
at his instigation and reflected 
the feelings of the production 
team. He also said they had all 
been referred to two advisers — 
Martin Gilbert, the official 
biographer of Churchill, and 
Elizabeth Monroe, Emeritus 
Fellow of St. Antony's, Oxford. 
Last night, just before the first 
part of the series went out, 
Monroe told me that she and 
Gilbert— aftei copies of the 
comments on the last part had 
"poured in"— had after “Jong 
conversations" agreed the final 
text. Blit even if she and Gilbert 
have been able to agree, Thames 
are the last to expectall viewers 
also to do so. 



41 I’m afraid it’s the yen, sir— 
it keeps rising with tee son! ” 


Fine balance 

When talking of his three-part 
Thames TV series on Palestine, 
Richard Broad expresses modest 
hope* of presenting “vaguely 
something called truth," but 
puts his emphasis on making 
a “ contribution to debate.*’ Cer- 
tainly, the debate has been 
raging since there were separate 
showings of the final pan of 
the series last week for the 
Arabs, the Israelis and “the 
rest." 

Since then Thames has 
received a number of letters 
calling for changes, in particular 
from Arab ambassadors. The 
Council for the Advancement 


Mop at the top 

Robert C. T. James claims to be 
the only member of the Institute 
of Directors whose fulltime 
work is cleaning public 
lavatories. “I hope my job does 
not disqualify me," he said 
yesterday. “After all, the Insti- 
tute is such a usefull pied-a- 
terre when one is up in 
London." It is not, of course, 
that James was always cleaning 
lavatories: until a few months 
ago he was a director of the 
British company of a. C. 
Nielsen, the international mar- 
ket research organisation. 

This is no hardiuck tale of a 
redundant executive. James 
sees the change from handling 
accounts of clients such as 
Bee chains and Wilkinson’s 



Sword to wielding a bucket and 
mop as entirely to bis taste. It 
occurred when he took early 
retirement from Nielsen’s last 
November and moved to New- 
gale in southwest Wales. He 
decided to look for a job to 
supplement his pension, but 
the first applications ended in 
failure. "Jobs are few and far 
between in Pembrokeshire.*’ he 
says. “1 am 60, and obviously 
younger men should have 
priority." 

So when James (educated at 
St. Edmund Hall, Oxford) saw 
an advertisement in the local 
paper for a lavatory cleaner at 
£1.07 an hour he knew he had 
found the answer. "I had rather 
an amusing Interview with an 
official of the Perselly district 
council.’’ he told me. "But I got 
the job." 

I ventured to ask Nielsen’s 
erstwhile Board member 
whether he found the work 
aesthetically disagreeable. “Not 
in the least," he said. "I feel I 
am doing something for the 
community.” 

i 


Life saver 

Some of Ronald Peet’s senior 
colleagues at Legal and General 
Assurance may be breathing a 
sigh of relief that be yesterday 
became chairman of the British 
Insurance Association. It could 
be that he will be too busy in 
the coming year to bustle them 
into joining his yearly jaunt to 
an adventure school in the wilds 
of Sutherland.. In Peet’s view, 
nothing is better for the tired 
businessman than going on 
dawn hikes with John Ridgway, 
who rowed the Atlantic with 
ChayBlyth. Climbing mountains 
and living hard ^put your 
problems in perspective,” says 
Peet, who Is 52. .Perhaps Peet 
acquired a fondness for rough 
relaxation while in Australia, 
where he spent 14 years work- 
ing for Legal and General. Lest 
I imply that he is incorrigibly 
hearty, Peet is also a director of 
the Royal Philharmonic. 


Dick’s chicks 

Transylvania, land of Vlad the 
Impaler and sundry vampires, 
is not the most likely place, 
to meet a bus-load of fresh-J 
faced American students. In 
times past, the great Count 
Dracuia would certainly h a ve 
disposed of the likes of them. 
But these Americans told a col- 
league who crossed their path 
that they were not mere 
tourists, but admirers of that 
contemporary demon, Richard 
Nixon. 

It was. explained one Cali- 
fornian, “in the nature of a 
nostalgia trip." re-tracing the 
historic path blazed by the 
former President when be 
visited Romania in 1969. Their 
next stop was Moscow. The 
terminus, presumably was, San 
Clemente. 


Observer 


* • 7 



Doesn’t he realise 
he can^honeExtel 
lor those 


—vrap, 



Extel has been.iogging and updating ali 
shareholding disclosures sintte Aprs, 1977 Wi 
holdings pf.5% or.more begarud be published* 
The complete record is instantly available— i 
you have to do is- pick tip a /phone. There is" 
delay, no filing, no sending messengers. - ^ 

u ^,I < ?^ s ‘i bscriplion to the EXTEL SHARE 
HOLDING -SERVICE entitles you to 24 ■fief 
enquiries a year and a further unlimited, numberfa 
a small fee. _«* 

Extel also takes ONCE- OFF enquiries. - 

- ~ 

To Extel Statistical Services Ltd,,.. . 1 . 1 .. .% 

37-45 Paul Street, London, EC2A 4PB. . '• 

Phone: 01 -253 3400..Te[ex: 263437. *■'« 

I should like to know more about the Extel 
Shareholding Service. • • ',‘ f 

Name (block letters) - , ; 

Position or Title .-. / ' „ 

Firm etc - • 

•Address: - V.- 




'Phone 




. —II i tf 1 : 

• - 

■*. iVNi-fe 5 '; 








19 


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June 2S 1978 ^ ULiT_- l| JC l«...L 

FINANCIAL TIMES SURVEY 

• . Wednesday June 28 1978 


Brazilian 




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From the outset Brazil's military rulers have relied heavily on the financial 
community to help solve the country’s economic and allied problems. Resultant 
success, including Brazil’s high rating abroad, augurs well for the future. 


Honoured 


By Hugh O’Sfcanglmessy 

Latin. American Editor 

SINCE 1964 and the military 
coup d'etat Brazil has been a 
country where the businessman 
has had an honoured place in 
society— and the businessmen 
with the most honoured place of 
all have been the bankers. 

The authoritative Sao Paulo 
business journal Exame recently 
commented: “The institutions 
which make up the financial sys- 
tem have in the past years lived 
through a period of exciting 
euphoria. Every part of the sys- 
tem, from the commercial banks 
with .their multiple branches 
to the small share traders on the 
whole obtained mouthwatering 
profits— and the exceptions, 
even those which obtained Gov- 
ernment help, came about be- 
cause' of very bad management 
rather, than bad conditions for 
business.” ' 

i - When the military took over 


the government Brazil was mov- 
ing towards hyper-inflation. The 
generals sought the best ortho- 
dox advice they could find to 
help them get inflation under 
control once again. From the 
very begi nnin g therefore the 
banking community had the ear 
of the miliiary and were able 
to influence the shaping oE 
economic policies even more 
effectively than in the time of 
civilian rule. 

As the country wound itself 
up for its spectacular growth 
in the late 1960s anid early 
1970s the well entrenched 
bankers were able to take the 
m aximum advantage of the fact 
that next to administrative ex- 
perience capital is the, second 
scarcest commodity - in a 
developing country. And what 
went for domestic bankers also 
went for the international banks. 
Brazil needed money and 
seemed to offer security, so the 
international lenders came in 
their droves. 

As the shine came off the 
economies of the developed 
world and the demand for 
bankers’ funds slackened in the 
industrialised West, - Brazil 
became an even more attractive 
proposition. Banks scrambled to 
establish a physical presence in 
Brazil, and there emerged a 
powerful group of financial 
men, Brazilian and foreign, who 
were able to lobby most effec- 
tively for the policies they 
thought were most fitting for 
Brazil to follow. 

Many of those in positions of 
the greatest influence— like- the 


successive finance ministers. Dr. 
Roberto Campos, now Ambas- 
sador in London, Professor 
Delflm Netto and tbe present in- 
cumbent Sr. Mario Henri que 
Simonsen — all had close links 
with the banking sector. What 
was true of them was also true 
of many other figures in public 
life. 


Support 


In the U.S. the Rockefeller 
family ' and Mr. David Rocke- 
feller in particular gave a firm 
and powerful support to the 
Brazilian Government and its 
chosen path of development but 
that family again was but one of 
numerous U.S. and European 
banking figures who threw their 
weight behind what the military 
were doing in Brazil. 

The interpenetration of 
financial interests with the 
Government has undoubtedly 
been one of the most significant 
factors in the shaping of 
Brazilian government policy 
from 1964 to the present The 
depth of the continuing commit- 
ment of the banks to politics 
was illustrated early this month 
in an ironic manner when one 
large Sao Paulo bank had 
rapidly to withdraw an internal 
circular which effusively 
welcomed the election of Sr. 
Laudo Natel as prospective 
government candidate for the 
governorship of the State of 
Sao Pauio after he had been 
supprisingly beaten by a rival 
outsider: . 

The result of this dose iden- 


tification of the financial sector 
with government is patent. The 
profitability of the banks is in 
general higher than that of the 
rest of Brazilian business: the 
financial systems working in the 
market arc more snphLticated 
than l hose of any other country 
in Latin America: bank 
branches arc ubiquitous in the 
cities and widely spread too in 
the countryside. Banks and 
finance houses maintain a con- 
stant stream of invitations to 
the consumer to buy on credit 
which in the consumer societies 
of the big cities are taken up 
with some enthusiasm. 

But since the limit on lending 
rates was raised at the end of 
1975 industry has been com- 
plaining of the increasing cost 
of loans and the difficulty of 
finding them in the first place. 

While the nominal rate for 
bank lending is between 2.5 and 
2.7 per cent a month, the con- 
ditions demanded by banks in 
exchange for that basic rate 
make the cost of money in fact 
far greater. According to some 
industrialists tbe real cost of 
loans js much nearer and in 
many cases in excess of 5 per 
cent a. month. Many borrowers 
felt that this sort of cost is 
excessive at a time when in- 
flation is running at a rate of 
around 40 per cent a year. 

In business circles there is 
some resentment about the 
powerful and privileged position 
that the banking sector has been 
able to carve out for itself. 


There are many in Brazil who 
would like ii» reduce the privi- 
leges of the banks and also cut 
Brazilian dependence on foreign 
finance; in the swiftly changing 
political circumsianecs of the 
moment they feel they have a 
chance of achieving some 
iheir aims. 

In the opposition party the 
Brazilian Democratic Move- 
ment (MDB). there are those 
who want purely and simply to 
nationalise the main private 
banks and achieve a situation 
similar to that obtaining, say, 
in France. They point to the 
need to channel more resources 
to agriculture and other sec- 
tors which can possibly provide 
more jobs for a growing popu- 
lation. The State they argue, 
is the only factor which can 
ensure that the resources con- 
centrated in the cities and 
often used for frivolous pur- 
poses can be put to work on 
projects for the long-term 
benefit of Brazil. 

They point to the record of 
the Banco do Brasil, in which 
the majority of shares are 
owned by the Government and 
which has expanded its business 
to become une of the largest 
banking institutions in the 
world. In doing this it has 
done much to bring sources of 
finance to the countryside and 
extend loans to farmers who 
still remain the principal pillar 
of Brazil's economy. 

It is unlikely in the foresee- 


CONT1NUED ON NEXT PAGE 


Venezoela 




V/ Colombia 


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Attentka- 


Capital and Reserves (December 31, 1977) 
US$115,681,610.65 
Premiums received (1977) 

US$ 243,02^,314.76 



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The leading Insurance Group of Brazil, 
associated \\ iih Banco Brasiieiro de Descontos (BRADESCO), 
llie largest Private Bank in Latin America. 


ATLANTICA-BOAVISTA GROUP 

is associated w ith: 

l 

ALLIANZ VERSICHERUNGS AG $ 

(Allianz - Ultramar) 

THE PRUDENTIAL INSURANCE N 

COMPANY OF AMERICA B 

(Prudenlial-Alluntica) S',! 

y.; 

SKANDIA INSURANCE COMPANY jvi 

(.Skaiulia- Boarista) U 

COMPAGNIA DI ASSICURAZIONE fi 

DI MILANO y 

(Patiia- Milano -Atlantica) ; 

7 lie Group lei' established operational agreements with 

DAI-TOKYO FIRE AND MARINE 
INSURANCE COMPANY LTD. 

LA BALOISE - : ■ 

COMPAGNIE D’ASSURANCES 

^ • ■ ■ . - '^3 -w ,.- 7 w*vwj* ■■ ■; ^ r;"'" 


TheAtlanfica - Boavisia operates in all lines of insurance all o \ er Brazil and in Reinsurance business in the principal markets of the world. 
' - Headquarters: Rua Barao de Ilupagipe, 225 -Rio de Janeiro. International Depart menl: Praca Pio X, 79 - Rio de Janeiro 









BRAZILIAN BANKING AND INSURANCE !! 


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it- : profitiM^ if 

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Account 
Opli 
•First Dec I: 
Dealings ti»n 
jun. 12 Jun. 
Jun.2B July 
July in July 

■ ■• New dme ' 
Frsm 9 JO o.m. i 

Worried l 
certainties, it 
hang fire at 
Account yesi 
was a furtl 
both British 
With few 
scheduled t 
were reflect) 
trend in she 
not only in 
home. Infl 
pressures 
registered, 
led to the 
showing lo! 
early sessio 
Views th; 
was necessf 
today's cal) 
tan Excheq 
wore not 
pres*ure o 
cnnslderabi 
jacked sufc 
afternoon 
shorts aMrj 
eventually 

close a mi 
♦he day. 
followed 
their lowe 
Equity 
with the l 
accordanci 
Selling wf 
i — bargain* 
the lowes 
Account 
genuine 
drawn by 
The FT h 
index wat 
calrulatio 
easier at 
Anri! 17. 
ratio in 
widened 
Jnfluen 
back in t 
tions lost 
while re 
as Souti 
1387, an 
' 1987 tbo 
} down 
First-tin 
fu) in 
stocks, 
capital!? 
Allied I 
at 90p, 
cent se' 

11 per 
NotaV 
of acth 
ment c 
the pr 
finally 
per cei 
sion fa 


B -£[ 0 ^ quarters of all loans going to rural - areas are- notprofitahle..- ;■ 

B j£ __ g the rural sector. However, the The bank' explained in -its -297£.j.# 5v*(TT 

gj h a 9 & H a B Elsa^' ®J "<3 a Government • . is becoming annual report that the pritt'j. V. r 

i jg ® S s | | | |f a ^ 8 H increasingly dissatisfied with the dpal - consideration .is hidt V~ r '£\ 

JbL ^ P ^ a IXlj 8 p country’s system of rural credit economic: - “ When deddln^;^, 4>- 

As Sr. Rischbieter pointed out whether or not to .open £>'3: 
recently, partly because of com-. branch, the criteria 7:4..--- —'J 

h plicated bureaucratic provthebanK have b^a . b asical ^ -- ->*] 

cedures, only one in five farmers to benefit those areas Lwhich> '& V i K ] 
■"£V k &l has access to bank loans. As the most ".require/ fiaaiusal 4 V % 

e B a yfl ra § ■* bank’s rural leans, worth tajicc; Social aspe<te:'i^ej>^^4 ^ j: - *?‘- 

J @ a J[ _V eL J Cr$17l.0bn (£5^bn), amounted the main factor. It.-ls -th^ r tTue4i 

'•f last year to 68 per cent of the- that the bank frequently ■ overi: . -; 

-»*- country’s total agricultural- pro- rules the purely economic''; ttD 

duct, estimated at Cr?250bn consideration of .whether ocaq^> i. 

THE BANCO DO BRASIL of a "monetary authority." This For several the baek banks loans that «. towards S' "S 

iBank >»f Brazil) the largest ha» _ < l nt that, far from chalked up extremely large strengthening the private sector extremely inefficient fashion. At- The Banco do Bra$i]‘ 

bank in the country and mere 1 ' JJ^mpung : lo increases in its profit. Last year, is the bank’s standard reply best, the farmers receiving Joans: ^ 

lhc seventh largest in the world. P ■ - k has htlped to however, its profit of Cr$8.7bn when, because of its enormous are producing in agricultural retorrerf ’>« ' hv - 

» like »,!>«*. octopus whose ««U J I Ji e ™ « ^the huau- (aOOm, S rew by only 33.3 per size, it is accused Sm to Product Jus. holf tile vaTue oi ^ 

tentacles have spread into many c/al »ame. often defending de- cent as comoared with the result th* crraH.tai ««« the ♦>,=* “Wl?® ->•;-■ 


K^'-rr'Vj w* 

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'"‘ewiioiu itttoaiuHb a„ v udubj iuic an uve interest raxes on israzu-s 

of the federal Government, in If?. * , it was the Banco dn “monerary authority" entailed T ^ e reduction in the banks remarkable money market, now aa ^ eo y® ntraf Itseif, 

which has justifiably fvlt lhat Brasi! that negotiated with the considerable sacrifices in terras s ^ ar e of loans reflects the strict running at around 60 per cent v a commercials _ 

the Banco do Brasil was the private commercial banks over of profitability. control over credit that the Gov- p er annum, are leading many - ,anft -lately* s. large.; 

best-equipped institution to the reduction of interest rates. The bank’s ]oan operations anient has been exercising in farmers to misdirect “rural" com P aii y pourfig-^ 

tackle a given' problem in the Rischbeiter attempted lo con- were worth an impressive recent months in its efforts to ioajlS| on ftcy ^ be money into companies, many. -of ; ; 

financial system. vince the bankers that it was CrS332.7bn mi 5hn» in tott combat inflation. The hank will n,d4, r iit,i„ ..i. them commercial flops., partfe:'' 


imporiant commercial bank, economic health that inflation the resources handled in 1976. th,s J' ear . for the Government an important speech at the “ ieiD when 
Us president. Sr. Karlos be reduced and. to achieve this, .Almost all of the loan? i95.7 has authorised an increase of Higher War College towards the deserve 

Rischbieler. has frequently the cusi uf money had to come per cent) went to private com- onl y 26 - 7 Per cent in its loans, en d 0 f Mav Sr RiachWeter The banker 

stated that he believes that his down. In the polemic that f«.l- panics. None the less, the bank's which will be well below the spoke of the’ pressing need for the dozeii or so 

bank — along with all other lowed the Banco do Brasil's share uf tola! loans anino frnm rate of inflation. -immori have been “k 


^1 


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vstem hank. It is estimated . t&at/ -J0»V J - 1 i ' - 1 -•= - ^ l - ^ 

’The Banco do Brasil also acts le “‘ (iaa&u) w« v l 1972 ’73 ^ ^ ^ 1 7B:M 

a some extent as a develnn. originaUy supplied to tfaeSe^ J m ? r :* 


Uie nanks luiiniun uui it*, i. railing to 4a.. per cent, as the largest agricultural bank in to some extent as a develop- ***pp««i w ■ tnese--"» " • 

been clear-cut. for at crucial Sr. Rj S Lhbjeters role, as both compared with 46.2 per cent in the world. The bank s presence ment bank. It now has 1,322 compames as loans and is nq^'^r^ 
moments in the lasr few years, hankers and government 1976. Reference to the over- in farming is of crucial import- branches all over Brazil Some t0 a large con?^ai«>ther case ‘Js.iAsa.aaummto j^aiast ; 3i&' 

the bank has assumed the role official, became very clear. w helming proportion of the ance. for it provides about three- of the branches in backward, wrted “to share capital. Gn'^iExtrusao,: inV 

__ . - — well-known case is th* pitlp=:fiSs an investment of -€i$IJlb;B^nptVfoave : i 

’ ’ ‘ -x • J mill, Riocell, which was takeg,;;'CE58.6m) in.:th6 -^dre rCanitiLT' faf 















an 




'f 


consultancy and financial planning. 
Intimate knowledge of Brazil and all of 

7y y ® A ® 


Get in touch with the Banco Itau and 
Libra Bank Ltd, where these services 
are at your disposal through our 
combined team of experts. 



au 

















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over from Norwegian. . teorre-l : : 'These operations: have /=jb^n^ ^ T actorj^irjl^vdSopn^^^ 
gaard by a military pehslon r widely criticised^ ^idn ^tbe quafe' i^£^Oh.’-r-V' ; ^® 
fund several years ago - and Brazilian .;P^e^^ : H^Va^dH L: '4 
which obtained an emergency' '-tiieter has made; -‘di;:- cleat: '.tiiat : r .' X "" ■ - : - 


| loan of Cr$400m <£13.SmJ.- ;the investments^ a ve^occnri^ 




■ • ■*: f • " j 7 - :• "•* 

: . . r >-‘; :r 4 v ..-Afr-'yA Hfc 

lOMTINUED FROM PREYIQUk PAGE" !*-" 


COHTlNUED FRpM PREYlOU^ 'PAGE* 


able future that curbs on iheZ ahoyality Imdimpraved sinwathe ire^me'7; 

banks will go as far as coming of the militar y^ Hritt power steefef • 

nationalisation. . Those who.;. added: “in the; -eCohc^i<x gi vte .way to> &- miife# 
favour that solution are in a financial area, besides inflation, and open formLofJgw^ 

minority in the MDB and the a monumental external debt and Ip which : th-e hand^^ 

latter is still a long way froxn ’ an uncomfortable pufalie deb t Is nor^O'fedyc 

power. N evertheless, as the snd a heavv * a » htmt-n that +ho' ^ er: •Wtivtb^'haye^pt 
Brazilian “ economic miracle t “if BraW^MBS 
recedes farther and farther HV' •pdUcy^'^T&^sSi 

the past and the mSS 
government which gave ^ 

banking sector its privileges in Amea! JiSSiSf - 


safe to say that the palmiest^ “nySSm ‘ ImndSds^ 

JS of banfci may weU - ^-.Smon, . 0 fc 1 S 5 sST&sS 

’ ‘ ■ money, have done ' nothhiE ' to’, 

The feeling that the banks improve the image ^of the n°t gt^ 

need to have tbeir wings dipped f flnanciai sector. .. - ... • I'wSSS^&iv ' jf'vwiSSs?-^ 
a little has been reinforced jfr >1, : . - i--; ; 4 .V :Vi' 

the realisation that conapti^; 3. ^ 

fodav nftpr 14 vonrt nt mfiiknr ». estemal sector.if-itw^S 


today after 14 years of mfliSy 

government is at least as bad as *. a r.,V,’>L fr 8 ^the-same time any^aw^ffl 

— and some would sav worse nioyeff.liito.a period. Jeehne ^Mrould. hf^ •’tertU 

: ST-r S S the dS ? 'X™**" *™ the eSporttoity ’ 

wert in power; future more obscure, than .at weight of present dhfii 4 

c- . any time 1 since 1984^ Interna- Tfiesfl.are heavy epou^ 

4>r. Fernando,. Pedreira, a tional interest wiU inevitably didon '.the attitude': 
noted commentator, remarked focus on - Brazil's standing as a'- Brazilian government 
m the conservative daily major borrower in the world’s lenders and of these h«, 

O Estate de S.. Paulo earlier financial markets. If, as is most- the Brazilian government 
t his m onth oryhow little public likely, the sort of military long time to come. 








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Financial Times Wednesday June 28 1378 




ty 4 


BRAZILIAN BANKING AND INSURANCE ID 


Big foreign debt burden 


BRAZILIAN DEBT 

(repayment schedule 1975/77) 


to be supported 



Total 


"T» of total 

maturing in 



Sbn 

•Yr. 1 

Yr.2 Yr. 3 

Yr. 4 

Yr. 5 

Utere* 

after 

September, 1975 

19.8 

2.7 

11.4 12.9 

13.8 

13.5 

45.8 

September. 1977 

30.1 

5.5 

15.6 17.2 

16.3 

12.7 

32.7 

* J.C. 

remainin 

S three 

months of 

first year. 



IN ABSOLUTE terms Brazil and paper programme, designed 
has one oC the largest foreign w 1974 to ~*a\e S4,4(m of 
debt figures in the world. Al foreign currency in the 1975-80 
the Iasi count, at end-J977. it periud. is now all but complete: 
was $32bn. SlObn more tlian two fertilisers and petrochemical 
years before and about ihree programmes, due to save about 
times the level before the 1973 $800 m each, arc due to come 
oil price rises. on stream during the next year. 

The rate of increase of the the s-teeJ programme, projected 
debt has been much faster than in save the largest amount of 
the. rate of increase in exports all ($6.5bn). is about half- 
or of foreign currency reserves, complete and the non-ferrous 
although these have both per- metafs programme expected to 
formed well enough. Exports save $1.1 bn over the five-year 
doubled between 1973 and 1977 period is abuul iwn-thirds com- 

to $12bn. Holdings of foreign plele. 

exchange reserves by the These major structural deve- 
central bank which fell back lopraunts combined with a 
from $61 bn in 1973 to S3 1 , bn bonanza on coffee enabled 
early in 1976 had risen io SSlbn Brazil to post a trade surplus 
by the end of that year and at Ian year. 
end-March last stood, at §7.2bn. The official estimate so far of 

The first problem in any the effect of the various cli- 
analysls of Brazilian debt is malic disasters which have hit 
definitions. More precisely, the Brazil in the last few months 
Brazilians include mure in ,s a combined fall in exports 
their debt figures than and increase in imports of 
most countries and are curres- a,, i»ut $l 5bn. If exports or 
pondingly sensitive about won- manufactures were to perform 
ries being expressed ahoul its a - s WL '* 1 during the rest of the 
size. They are at pains tn point year as hav * in tlie 
out that the size of their debt quarter they would apparen j 
does not look nearly so fright- so ^ ar locnvc £ 
ening when examined net of at best Brazil is iootang 

towards balancing its trade 


foreign exchange reserves— at loWB ™ s 

the last count in March the net >™ u "> s ,hls >'" r - .P””” 1 


figure stood at S24.8bn. '“P*" , “S' 

When making comparisons w"* ^ ebt " r,tan * fr0In the 
with other countries; notably tra 1 r e ®«-™unL h up 

oiJr hoc J According to tile last public 


Given the decision tn encour- 
age borrowing as much as pos- 
sible, Brazil could not put as 
much pressure as some other 
borrowers on the banks tu im- 
prove the terms which they were 
prepared to lend. However, 
there was room for some im- 
provement and the second 
question which Brazil had In 
decide with priorities was 
whether to concentrate on get- 
ting longer maturities nr nn 
cutting the margins the banks 
were charging over their own 
cost of funds. 

Until recently there was nn 
question but that Brazil concen- 
trated on getting longer maturi- 
ties. The reasons for this were 
first to improve the profile of 
Brazil’s debt structure to try 
and spread repayments over as 
long a period as possible. This is 
a point to which Brazil has 
always paid more attention titan 
many countries and to its great 
benefit. Given its large foreign 
debt in absolute terms a bunch- 
ing nf maturities could have had 
as disastrous an effect on Brazil 
as it has had on. say. Turkey 
and would have bad on Mexico 
but for nil. 

Another major reason fnr 
going for a lengthening of 


maturities rather ih3n a cut in 
spreads was that in a country 
like Brazil which expects in 
maintain a relatively high rate 
of growth (even if slower than 
in ihe last decade > the longer 
debt repayment can be post- 
poned the smaller a proportion 
of GNP it will represent. 

There were a Imp gnnd inarkoL 
reasons for cunlinuiug tu pay 
relatively high margins: ihi» 
policy kept the hanks happy. At 
a time when they were having to 
argue for every sixteenth of a 
point with many borrowers, the 
fact that Brazil was prepared in 
continue tu pay almost un- 
changed rates doubtless meant 
that the banks were prepared io 
stretch their lending ratios that 
much more, and without press- 
ing homo imi many questions 
on the size uf the debt and re- 
payment prospects. 

Having stretched maturities 
out well. Brazil is now gelling 
tougher nn margin* tun. 

The third decision which 
Brazil had in make on its 
foreign borrowing policy was 
whether to follow the path of 
the jumbo loan where Hie 
Government raises in its own 
name the odd billion dollars or 
so at a go or whether to con- 


tinue with the traditional policy 
n f encouraging a.s many 
different borrowers as possible 
to tap the markets. Apparently 
some bankers argued that Brazil 
could have raised more at 
cheaper rates iT Lhe Govern- 
ment hod borrowed in its own 
name. 

Tins option was* rejected first 
because the Brazilians wanted 
to encourage as many borrowers 
as possible to establish their 
own relationships with hanks 
and second because uf the ever 
stricter application of the so 
called 10 per cent rule in the 
U.S. 

Under the 10 per cent rule. 
U.S. banks are limited to lend- 
ing lu per cent of their capital 
to any single borrower. Given 
that a proportion of Govern- 
ment- guaranteed borrowing 
counts as government borrow- 
ing for the purposes of the rule 
and given its large burrowing in 
absolute terms is imperative 
fur Brazil to ha\«- as many bur- 
nmers as possible in the field. 

Brazil has used the extra 
cachet of the Stale to pave the 
way into the international bond 
market. But here too the aim 
is to build up other names as 
far as possible. 


One further way in which 
Brazil is trying to improve its 
foreign debt situation without 
rutting back its access Io 
foreign capital is to encourage 
foreign companies to convert 
loans to their Brazilian subsi- 
diaries into equity. Fiscal 
incentives have been introduced 
io encourage ihis. but it is still 
too early to judge how success- 
ful this programme will be. 



DEBT SERVICE 

RATIO* 



(5m) 




External debt 

Exports of 

Debt service: 


serviec 

goods 

% of exports 

1972 

•*.322 

0591 

58-2 

1973 

2,577 

6,199 

41.6 

1974 

2.595 

7,951 

32.6 

1975 


8,670 

41.3 

1976 

4,646 

10,128 

45.9 


Mary Campbell 


Excludes loans with original maturity of less than one year. 
Source: Banco Central do Brasil. 


BRAZIL’S DEBT SERVJCE* 


($m as of September 30, 1977) 
Public sector debt Private sector debt 


Combined debt 


Princ. Est. int. 
repaymt. payment 


Princ- Est. int. 
repaymt payment 


1977 

1978 

1979 

19S0 

1981 

Total 1977-81 

1982-96 

1997 and after 


G67.3 

2.327.9 

2.841.9 

2.741.8 

2.025.9 
10.604.8 

6.584.0 

534.0 


387.7 
1,264.6 
1.077.4 

848.1 

621.8 
■L199.fi 
1,796.8 

85.7 


994-2 

2.374.3 
2,340.1 

2.148.3 
1.794.8 

9.651.7 

2.712.7 

0.2 


301.0 

891.6 

705.0 
51121 

354.7 
2,763.5 

469.0 

0.1 


Princ. 

repaymL 

1.661.5 

4.702.2 

5.182.0 

4.890.1 

2.820.7 
20.256.5 

9.296.7 
53422 


Est. int. 
payment 

68S.7 

2.156.2 
1,782.4 

1.359.3 
976.5 

6.963.1 

2.265.8 

S5.S 


Total 

debt 

service 

2.35022 

6.858.4 

6.964.4 

62249.4 
4.79722 

272219.fi 

112*62.5 

620.0 


* Excludes loans witb original maturity of less than one year. 
Source: Banco Central do Brasil. 


Mexico, which also has an JIJT Months 

apparently high level uf debt _ servidng the 

one also has to bear in mind dell( would mst Brazil 

that the Brazilian figure nearly $6bn this year. In prac- 
cludes private sector debt tl lhe fi re is llkdy to be 
whereas the usually quoted higher bolh because of the im- 
Mexican figure does not. Much pact o[ higher interest rates on 
of the private sector debt is aoatJll „ rau . loans and because 
long-term investment by foreign of lbe fac , ,j ul ne w horirbwing 
companies in Brazilian sub- has excee ded repayments -in the 
sidiaries. If this figure were to past nine months. The $6bn 
be deleted there seems little figur( . s h 0W s no signs of falling 
doubt that Brazil’s debt would j n coming years, 
be smaller than Mexico’s. These are hardly small figures 

. No figures have ever- been and with the worldwide increase 
officially published on the ex- in protectionism, combined with 
lernal debt of Mexico's private continued recession in the m* 
sector. One recent estimate, by dustrialised world. Brazil, will 
Union Bank of Switzerland, puls do well if it succeeds in ccrver- 
it at $Sbn to $9bn. Such a figure , ing even a significant part of 
would bring Mexico's overall its debt-servicing needs by 
funded debt to some $30bn, or means of exports in coming 
net of foreign exchange reserves years, something it has come 
of some $1.5 bn, well above the nowhere near doing in _ t 
Brazilian net figure. ’ recent past. The present fore- 

In addition to this Mexico cast therefore must be ^for con- 
p rob ably has relied more on turned large-scale harrow)*, by 
short-term • foreign financing Brazil to cover ;* I ® 

than has Brazil, and foreign requirements, let alone an* fur- 

debt figures traditionally *how developed 

only funded debt — Le., loans Fo 5 * Iit _ r _>-hi with a i aree 

«Tearta ye^ nil ° f foreign borrowing requirement 

The otLr side of this ~ *" 

picture is that whereas Mexico yfhm - the international 
is an. exporter of oil and has financ j a i markets became liquid 
recently had reason To mulUply , n in 1970.77. Brazil was not 
the size of its oil reserves, . suc j 1 a favourable position as 
Brazil has so far. despite much jt had ' heen in ^ previous 
exploration, found none. At the }973 . 7 ^ i en ding boom because 
same time, the weather this pf its earlier heavy borrowing, 
year .has again cut back the ^-g meant first that it already 
prospects for Brazil’s agricui- i op k e d in danger of being over- 
turaL production. indebted and secondly that 

Until the oil crisis Brazil’s banks’ portfolios were fuller of 
future looked fine. Like all Brazilian paper than that of 
developing countries aiming at almost any other country, 
rapid economic growth, it relied Nonetheless the situation was 
heavily— and of necessity— on undoubtedly much more 
foreign finance. However, its favourable than during 1974 and 
balance of payments was under- 7975 g-nd Brazil had to decide 
pinned by a wider range, of its priorities in at least three 
agricultural exports than in different areas, 
most’. other countries, as well as First it had to decide whether 
large • mainly unexptoited t0 make maximum use of the 
mineral wealth. Given political . more liquid environment and 
stability, it was the perfect } us t raise as much foreign 
place.' for foreign investment. currency as possible while the 
- When the oil crisis hit. it going was good even if -it might 
was armed with large foreign not be needed-in the short-term, 
currency .reserves which tided- Effectively. Brazil decided to 
it over well in the short ' term. g 0 ‘ ahead and encourage 
For the long term it intensified borrowing as much as possible, 
its investment programme in This raised the spectre of sharp 
order to cut back imports or increases in domestic money 
bnili up exports to cover lhe sup piy because- of conversions 
increased oil deficit. : of foreign currency. . The 

Atlthe same time it launched possibility of temporarily 
exploration programmes for-oil. freezing some of the foreign 
The latter have yet to yield currency inflows m the central 
fruit. But according to: hankers hank was • di - scl ^ a "J 
recently in Brazil. vvhat_are de- implemented, for a short period 
scribed as the self-sdfficiency last year. A similar move has 
programmes, are doing as well been made again in the last 

as could be expected.. The pulp week. . 


, .’ K ' 




■ ; .^r.; k .* ■*. 




-v.t.- 

-* .****** -■ 

„ ■ V *■ * 

■ -.»jjp5SiS 

.tB-- 



Sa-iwodd Eslado^o ^io d£ Janeiro. 



^ 7 ? 

■'/'■J \Y t 



1 

Jj}! * . 

W / * 

m 





w 




\ 








Sri 





- . . J -VU ^ 






This country has an area of more than B. 5 1 2 
million square kilometres (3.287 million square miles} 
and 1 1 6 million inhabitants. 

So its potential as a market is enormous. 

Here are some facts which should be of interest. 

in the last few years the growth rate of Brazil’s 
GNP has been among the highest in the world. Per capita 
income reached 1 .460 dollars by the end of 1 977. 

It’s also a country with the most varied types of climate, 
suitable for growing crops of both temperate and tropical regions. . 

Agriculture activity grew by 48.7% between 1 970 and 1 976, / 

bringing the country to the privileged position of second largest 
food supplier in the world. 

It’s a country notable for the vigour of its private 
enterprise, whose development is being assisted by large 
projects under government supervision, industry is 
developing-rapidiy, stimulated by a 150.000 Mw hydro-electric 
potential fat present 2 1.800 Mw are being generated). 

Steel production has already reached 1 1 million tons, 
and the automobile industry has a production capacity of over a million 



er year. 

(rowing petrochemical 
ady to supply the entire 
rket, from now on, 
luiiding industry 
of 854.000 DWT in 1976. 
it production of the aircraft 
n in 1969. already positions 
orid. 

Irazil, a country very rich in 


ng for partners who would 


for you as it will be for Braz 
nterprise.just contact 
e 



lur gateway to business hi BraziL 


ABIDJAN* ■ AMSTERDAM • ANTOFAGASTA • ASUNCION - ATLANTA* • BOGOTA • BRUSSELS ■ BUENOS AIRES - CARACAS' • CHICAGO • COCHABAMBA • COLON • CONCEPCION • FRANKFURT • GENEVA • GRAND CAYMAN 
• HAMBURG ■ LAGOS • LA PAZ - UMA • LISBON ■ LONDON • LOS ANGELES - MADRID ■ MANAMA * MEXICO CITY - MILAN • MONTEVIDEO • NEW YORK • PANAMA • PARIS • PAYSANDU • PUERTO P. STROSSNER • 
QUITO • RIVERA • ROME ■ ROTTERDAM • SAN FRANCISCO • SANTA CRUZ DE LA SIERRA • SANTIAGO • SYDNEY ■ SINGAPORE* • STOCKHOLM • TEHRAN • TOKYO • TORONTO • VALPARAISO • VIENNA* • WASHINGTON 
OVER TQ00 BRANCH OFFICES IN BRAZIL. * OFFICES TO BE OPENED IN 1 978. 







3. 



3S 



Gill 

Fall 


Account 
Op I 

'First Dec! 
Dealings lloi 
Jim. 12 Jun 
Jiin.2fi Jufj 
JnlylO Jui; 

New time 
From 9 JO a.m. 

Worried 
certainties, i 
hang fire at 
Account yes 
was a fun 
bnih British 
With few 
scheduled t 
were reflect 
trend in sh- 
not only in 
home. Inf 
pressures 

registered, 
led to thi 
showing lo 
early sessic 
Views th 
was recess, 
today's cal 
tan Excheq 
wore not 
pressure r 
ennsiderah - 
lacked sul 
afternoon 
shorts am- 
eventually 
close a m 
the day. 
followed 
their Tosst 
Equity 
with the 
nccordanc 
Selling w: 
— bargain- 
The lower 
Account 
genuine 
drawn by 
The FT I 
index wa- 
calrulatio 
easier at 
Anril 17, 
ratio in 
widened 

Influrn 
back in ■ 
lions los 
while re 
as Soul! 
1M87, an 
1087 (bo 
3 down 
First-tin 
ful In 
stocks, 
capital]! 
Allied I 
at 80p. 
cent se 
11 per 

Notat 
of acth 
ment c 
the pr 
finally 
per cei 
sion fa 


OO 



Banco do 



ASILS.A. 


CONSOLIDATED AND CONDENSED COMPARATIVE STATEMENT OF CONDITION 
IN MILLIONS OF U.S. DOLLARS 


New branches and representative offices to be opened 
shortly in other countries. 

Banking correspondents throughoutthe world, and over 1,000 full branches in Brazil. 

LONDON BRANCH 
15/1 7 King Street, EC2P 2NA. 

Telephone: 01-606 7101 .Telex: 8812381 



razil. 


Bank of London & South America, 
a subsidiary of Lloyds Bank International, have 
been established in Brazil for well over 100 years. 

In addition to a comprehensive knowledge 
of local conditions, the bank with its associated 
and subsidiary companies, maintains a network of 
branches throughout Brazil which offer a full 
range of financial services. 

Central Office and Sao Paulo Branch: 

Rua 15 de Novembro 143-165, Sao Paulo 
Telephone: 239-0322 and 239-5122 

For further information on doing business 
with Brazil please contact our Latin America 
Division in London. 


LLOYDS BANK 
INTERNATIONAL 

40/66 Queen Victoria Sl L ondon EC4P4ELTefc 01-248 9822 
A member of the Lloyds Bank Group 






Non* 

, 5&ssr.^ - 

V - - - ^SkHndmaviskS^FLns k il d* V 


America do Sol 


Foreign Partner 
Kaboshiki Raisha Fngi Ginka 


Assets 

31.12.73 

31.12.74 

31.12.75 

31.12.76 

31.12.77 

Cash and due from banks 

682.9 

1,021.0 

1,142.0 

1,344.7 

1,098.1 

Loans 

14,870.3 

20,856.9 

26,166.8 

31,932.4 

39,023.9 

Securities 

285.2 

338.7 

429.7 

506.9 

729.8 

Bank premises and equipment 

292.1 

356.6 

373.4 

370.3 

900.7 

Other assets 

499.5 

663.2 

1,094.4 

4,772.4 

4,983.9 

TOTAL ASSETS 

16,630.0 

23,236.4 

29,206.3 

38.926.7 

46,736.4 


Liabilities 






Deposits 

10,872.7 

15,007.8 

17,537.7 

23526.3 

26,565.1 

Demand 

6,485.7 

8,183.2 

9,129.6 

9,839.7 

11,019.8 

Time 

4,387.0 

6,824.6 

8,408.1 

13,386.6 

15,545.3 

Funds borrowed 

781.9 

1,147.8 

1,367.4 

1,504.0 

1,760.7 

Funds for refinancing 

2,524.7 

3,301.6 

5,882.5 

8,014.0 

11,341.5 

Other liabilities 

1,296.8 

2,070.2 

1,961.2 

3,493.8 

3,521.6 

Capital and reserves 

1,153.9 

1,709.0 

2,457.5 

2,688.6 

3,547.5 

J TOTAL LIABILITIES 

16,630.0 

23,236.4 

29,206.3 

38,926.7 

46,736.4 


Aymor£ 

Interpar (99.99% controlled 
by Hollandsche Bank, link) 

99.99 


Bahia 

Westdeutsche Landes bank' 
Girozentrale- - 

29 

* ’ . . 

BCN 

Banco de Comer- 
do National) 

Barclays Bank International 


100 - 

Bozzan o-Simo nsen 


iS '• 

. . .-.V 

Mitsui Bank ... 

• 5" 



Mellon National Corp. ...... .... 

13 

- - .-*■ ^ 

Bradesco 

Sanwa Bank 

Deutsche Bank 

Societe Gfinfrale 

Amsterdam Rotterdam Bank 
Kreditanstalt Bankverein 

10- 
• 5 

3 

I 

; i 

10 . 

5 ..u 

. 

. l-V 

i L 

BRAS CAN 

Credi banco 

T.OJP. (Brascan) 

Irving Trust Financial Corp. 

Credit .Lyonnais 

too 

n 

2.5 

• ' 

Crefisul 

First National City-Bank 

(Overseas Investments) 

21 


Denasa 

Security Pacific Overseas 
Investment 

10 . 


Fiiiaii eeiro e 
Industrial 

Banco Frances e Italiano para 
a America, do Sul — 

S3 

IT 

FINASA 

Morgan Guaranty International 

Finance Corp. 

Industrial Bank of Japan ... 

13 

10 

3 

. ; ‘U 


Canadian Imperial Bank of 


. ' y 




Infercpntii^at^V; ^Nippon- Fados^Btonk ... j^. ( - • ' 


. 100 ~ITAU V W' ^l^owa-Baak. • 






Noroeste 


- 'UM Tfimnce - / •. SfcjJ 




.i ;• Credit- Suiss e...r. , 1 «: ,U I 

“ank Corp. - ^ ^ 

shank ; 'jLGfc. 








The figures shown above are ihe conversion o / Cruz&roz imoU.S. dollars ai the rase prevailing onihe respective balance sheet dales. 

FOREIGN NETWORK 

London, Paris, Paris-Opera, Hamburg, Frankfurt Amsterdam, Rotterdam, 

Milan, Rome, Lisbon, Madrid, Stockholm, Geneva Brussels, NewYork. 

San Francisco, Los Angeles, Chicago, Wash ington.Toronto, Mexico City, 

Tokyo, Grand Cayman, Panama City, Colon, Buenos Aires, Montevideo, 

Ciudad Vieja, Paysandu, Rivera, Asuncion, Puerto Presidente Stroessner, 
Santiago de Chile, Antofagasta, Concepcion, Valparaiso, La Paz, 

Santa Cruz de la Sierra, Cochabamba. Bogota, Lima, Quito, 
Manama-Bahrain .Tehran, Lagos and Sydney 



T m hi • u , — i.' ■ ' TV.' 5 “ i?. -rTZC 

;, E JRSSI 



EXCLUDING THE Bank ur ^ t ; .*• 

Brazil, assets held by banks r \ 
operating in Brazil — i.e^ 
national and foreign commer- 
ciaJ banks and the banks I i"~V 
operated by the various States*'/;"' 

— have grown by 3,000 per cent 
in 10 years while the country’s 
GDP bas increased by 650 per 
cent In 1967 the total was 
$41.5m; by the end of 1977 it 
had risen to $1.317bn. 

These figures illustrate the: 
reasonable health of a b anking £$ 
system that has only been ~v 
rationalised for about 10 years £<Of 
— a process achieved through 
official encouragement of 2 " 
mergers to reduce the numbers 
of banks and of conglomerates 
in order to provide, according 
to official planning, structures 
that are strong and varied 
enough to withstand pressures 
from outside and in. 

Brazil’s highly centralised 
economy, where the Treasury, _ 

Central Bank (created in 1964) Government to control the 
and the ever more powerful interest rates on deposit 
Bank of Brazil virtually set the accounts but so far there has 
pace at which commercial and I 56 ® 0 do response in this 
investment banks, building direction. 

societies and financing com- Meanwhile the Treasury’s jjradESCO- ’ ; 
panies can operate, appears to forecast that the moneyexpan- XTAU''“ ' - ' ^ T* " "7 ‘ ’* ’ * ’ V 7 

be both a boon and a handicap sion could be held to 25 per ivAfrrmAT " *"T 

i to private bankers. cent in 1978 is already obsolete, BRAT . 

with monthly rises of 3.5 per bAMEWNDUS ’ ‘ Z^ZZZ.'ZZZZZ^ 

I Monncif cent or more since the begin- Unihani^ 

| UepOSlt jjng of the ye^ and deposit jfcSS a* SS“;2v s ■■ ^ v 

Official attempts to regulate a p co un ^ liquidity playing -a rnmimi 

the money flow — thus in theory part in this expansion. Economic® ^ 

containing inflation — require The bank5 ’ liquidity has also SuI Bradldro 

commercial banks to deposit 35 hel P ed fa y ° £ Mercantll do Brasil ' 

per cent of their current fore, en resources, now made Noroeste " ' 

account resources at the cheaper by the lower lending A nTfflnr - 

Central Bank each month. In rates granted to Brazil with Creditb National ‘ ‘ ‘ : 

November last this compulsory longer periods allowed for re- Baiidmrantes " 

deposit was temporarily raised payment of principaL 
by 5 per cent, on the under- As far as their profits are 

standing that the excess would concerned, Brazilian banks en- 

be repaid this spring. joyed a two-year boom from and JRio de Janeiro northward; of major "or nrintii 1 ^ in 


The commercml-tSentre ofUiq de Janeiro. : . .. 


TOP 15 DOMESTIC BANKS 


/m 


Deposits 


<$m) . 

Z ffiB 

.-■■,1,750-, 


■ 1460 

'A'. 

: 746.9 

■ - < 

. 724^1 


. 60«J) 


; :.:.S9&2 


519.4 

•' .. 3| 

. 4«Jl 

•• ■ \ ---'.rj 

331.6 



". 267.7 
247.6 

297^ v„; 

. 214-7 _ . 

- 205.4 

. 

Note: Conversion: at Cr.17.70 to the dollar. , . . . 
Source: . Exame Magazine. - . . . V •; 


The severe drought however 19< 5 to mid-1977. Now, however, and away from large cities to commerce slowly hortfawg^ 
^.id its effect on the finances apart from Merest on small towns, is having some' Meanwhile, Brazil's -MP 

of farmers, caused the Govern- de P° sit accounts outlays are effect on banks, banks. ; like BradescpH“'* 

ment to reroute the excess— ^creasing through higher wag^s In. 1974 only 1,881 of Brazil^ Itau, Banco Beciff .-«nd ; Ui 
some $500m — to emergency whlch havin S S° ne U P 512 3 - 953 municipalities: had a book have ;be6o?ie : matjor' 1 ^ 
rural credit It is now uncer- per cent a ^ ,sor l> ivst ° ver 40 branch (and this was more * conglomerates. Bradesco 
tain when it will be refunded P er ceat o£ running costs, likely to be the Bank of^ Brazil the largm commer^ 
to the banks. Nevertheless, bankers do not than commercial banks). Over largest investment teu^ 7 

There are further official espect a “catastrophic” year in 70 per cent of these inunicipali- coohtrr.'the other maim 
restraints on commercial baS 1978 ’. aDd p J edict r a half-yearly ties enjoying some fonn of own investment hanfa-- 

operations. Apart ft^mthe^5 rise , ,n pr h ofits of ab ? ut 5 per banlang se I vlt t we J e ^e. tioiB . -^ which .also., pay 

per cent compu^ory d“posft at ceut rale as ^ Prosperous South or South-East, interest on deposit accoii^ 

Uie Centra l™ Ba hulf of 1977 ‘ onI f {? per u ceDt in ** north- lend at even higher rat^l 

must by law lend 12 per ceirtof ^ °ther_banK. 

all resources deriving from 


current accounts to small- or 
medium-sized businesses, and 15 
per cent to rural activities 
(farming, livestock breeding 
etc.). Interest rates charged m 
these loans must be “symbolic,' 
according to official policy. 

Thus with 8 per cent of 
current account resources kept 
as cash in hand, only 30 per cent 
of this balance resources may 
be dispensed as the banks see 
fit 

In essence these restraints 
! have led to a noticeable decline 
1 in the growth of current 
accounts. On the other hand 
they have produced a veritable 
boom in savings accounts, on 
which there are no official 
strangleholds, and on which 
interest rates were freed in 
1974. 

Bearing in mind that current 
accounts cost the banks nothing, 
in practice this has meant that 
while paying interest of 
between 40 and 48 per cent a 
year to depositors (who must 
keep their money in these 
accounts for a minimum of 180 
days), banks are charging 55 or 
even 60 per cent for Joans made 
out of deposit account resources, 
thus earning themselves a 
modest profit compared with 
previous years. Simultaneously, 
they are attracting Individual 
savings the Government would 
prefer to see applied to the 
savings books, or Treasury bills 
and bonds, which pay interest 
rates of about G to 8 per cent a 
quarter and, in theory, keep 
! money out of circulation. 

There have been calls for the 


tion" of the Brazilian economy, opening branches throughout majors also own' finance 
shifting the emphasis away from the country, following the drift panies which deal in'- 
the El Dorados of Sao Paulo CONTINUED ON NEXT PAGE 7 • - 





YORKS! HRH-COltCDVADO 

COMPANHIA DESEGUROS \ 1' / 


A MEMBER COMPANY OFTHE 



m ;GRQUP" 


CAPITAL REAUZADO E RESERVAS: Cr$ 227 . 00 ^ 000 ,^ 6 - . " -i’ 

Tel.: 221-4/22 -Teleg.-YORKSHIRE^-CaixaP^!29fl7. 


CahcaPbst^2207_-2C?d6 
SUCURSAISEM: 

Bel° Ho £ z °nt^ .£0 

Porto Alegre, Recife, Sao Paufo.SaWacior e 
AGENCIASEM:;: - 

Belem, Manaus e.Parnafba. ‘ - 

Inspetorias de Producao erre 




' Brusque, Caxias doBuL • 

Jotnviiie, Sao Bento do Sui eSao Jose Dos Cam^os.- : • 




- 1 1 ?: hj 

ii** JH— ‘ '---A 


Sucursal de Sao Paula: ' 
Rua Ubero Badaro. 377 - Iffandar-Tel.: 


3 . 


f ~ -v ij'Jiz'zvxsL 




& -■ 










• . » 


Financial Times Wednesday June 28 197S 

BRAZILIAN BANKING 




1 

r* 

; - -5 




ks i 




'*.. ...fa 

-A . v 








«. Im 

v la 


; -. sjfC- l 


i ■ V ‘ 




to 


funds 


regions 


south between 10 anti -U years 
a£o, then major projects like 
tlit* nfirtli-eastorn pef ruche mica J 
complex, then by sLimulaiinj 
smaller enterprises. 

This policy includes creatin' 


2J.0 cations were geared to the 
2i).i imeriur. 

7* 

The development banks. 


6 " 5 The development banks, 

especially those in the less 

favoured Stairs, would like 
greater decision-making auto- 
j-g-g noiny for themselves, and 
3U4 5 sreater 5peed in receiving 
4G7 fUnl * s from ,hc federal institu 
fiunsf on which they depend. 
They indicate that their in It 
18 3 ,nale knowledge of local prob 
_j’« lems is not always reHecied in 


S^lonment 0 ’fiank ’■ south between 10 and CM years 

Development Bank IBNDE, DEVELOPMENT BANKS ■**. then major projects like 

institutions - ,. DrtWTU __ , _ Mes H.c north-eastern petruchemicaj 

*' investmenr channel GROWTH OF LOANS complex, then by sUmulatinj 

i n in Sl?hP^? ~ guidance (per cent 1977) smaller enterprises. 

into Brazil s heterogeneous local Santa Catarina (BADESQ .... 143 7 .ru- .• • . 

areas see themselves as part- Rio Grande do Sn! (BAPESUL) [ J2L1 ^ *V?L Ly , inc } u ^ s creating 

financial. part-instructional Rio de Janeiro <BD Rio) speciiic industrial districts and 

bodies attacking shortcomings Bahia ( DESENR ANCO) 48 4 *J tracl ”|2 r - development away 

and .obsolete business thinking Ceara (BANDECE) j: 30^5 ? om . “ rb “ n <-'entres to 

at grassroots level. * Minas Ge^s (BDMcV 1-...“" \^ ,nten< T 0 of lhc S,al ?* 

The long-term target of Nac. dc Desenv. EcoJaSNVE) *j 5 catmn^wwe^gJred °io* P {he 

Brazil’s Government planners Sao Paolo (BADESP) 20.7 ^ Ie riur B “ “ 

is growth: the BNDE. regional Nordeste (BNB) 7.2 . , 

and State development or mixed R p S- de Desenv. do Extrei ao Sul (BRIDE) G.5 development banks, 

commercial-development banks 1 ~~ I — especially those in the less 

aim at making this growth GROWTH OF PROFITS favoured Stairs, would like 

rational, adjusted to the^necds (per W" 1 1977) greater decision-making auto- 

and potential of eaeh State nr Rio de Janeiro < BD— Rio)- JU9.9 nomy for l J henii,elvcs - . and 

region. The pattern generally Espirito Santo (BANDES) 104.5 ? re ater . spe ^ d receiving 

has been first to pump massive Santa Catarina (BADESQ 4G.7 . dsf from , ,bc . fei ^ eral in.ttifu 

investment into essential infra- Reg. de Desenv. do Extrema Sui (BRDE) 31.1 fl depend. 

structure services (electricity, Nordeste (BNB) 24.4 i ndiuate that their mil- 

sanitation. roads, storage facili- Minas Gerais (BDMG) .- isls ! 1lale of local prob 

ties, etc.) and then to fund Ceard (BANDECE) —1.7 ems '. s . n ° l always reHecied in 

large farming or industrial pro- Parana (BADEP) ” —6.0 L ‘ cn . P riori ij<- , « worked 

jects (depending on the Sao Paulo (BADESP) ...v. ! -7.6 ol if w ,r ! . Brasil,ai , Funhcrmiire. 

characteristics of each area) Bahia (DESENBANCO) — 14^2 Jv'" he t- “ rrent *' ar l,n ,nfla 

which in turn draws in smaller ---■ ■-■■ - — — — — — tinn squeezing credit, the devc- 

spin-off industries. Current RETURN ON ASSETS lop merit banks have had to 

emphasis in the marc developed - (per cent) grappled with slow-moving 

SKKkJ? Z “Mf. ««**• <bnb) z::— — ■ Mi reduced Iunds - 

f b -“ „ S5 Abroad 

5i KKea.br the BOTE aad iu 

system in the past 25 years p nraT in /nanSp\ * *i‘J agents have supplemented the 

mirrors the expansion of K9hi4 rnvcvMnawriii'" ia'f> funds received from federal 

Brazil’s economy. JB *°«'* s ™* ^ | a ^ ngS 

In the five years between Rj 0 de Janeiro (BD— Bio) .1 15.1 Ba “ k . ^aoonal Housing Bank— 

1952 (when BNDE was founded ganta Catarina ( BADESC)' 10^ as as , th ® ir share . o£ S0(;ia J 

and 1957 $819m were applied security funds or issues of 

to development projects. OPERATING PROFIT deposit certificates — with re- 

Be tween 1962 (when the ffrvr OPtWHNU mur n sources raised abroad. tBNDE 

^tedevel^mentbaX ^ (per cent pre^r onloans and financing) i s opening an office in London, 

formed)-' and 1967 appUcations Nordeste (BNB) :. 7.5 lts _™ overseas.) 

rose to "$1.4bn. Despite the Nac. de Desenv. Econ. (BNDE) 7.3 _ n Forei S Q funds accounled for 

traumas of the oil crisis, no Parana (BADEP) “XJKw STHS 

less than $17.4bn was applied Mo de Janeiro (BD — Rio) : 42 r f| a]li ^ ov " 

*y_ f 73 S ^SStSSS S^^r li SS^SaS s ste; 

1977 and §3!5bn^i 1976). n Q Sao Paulo (BADESP) 2 ; 7 DMlOOm respectively and 

last year’s applications 79 per «*g. de Desenv. do Extreme Sul (BRDE) 2.4 S “ o0 “ ra, J?J 1 u™ u t B h h sy r dl .' 

Kat.wmfta the private seetar - f" Ch'cago B=S,k lank of Japan 

and 21 per cent to the pubhc Santa Catanna (BADESQ 1.4 q{ m ^ Bank Qf 

sector *. . v . Montreal. 

The essence of the develop- outs j^ e experts). They, 'like number of enterprises will be With 4,000 technicians work- 
ment banks philosophy is ^ QgAG trainees, are driilied induced to offer their shares on ing in the development bank 

summed up by Sr. Luiz Fayet, j a management methods . the Brazilian, stock markets, system and 1,500 concentrating 

president of the Association of costingi stoc^ control, quality thus not only benefiting them- on the CEBRAE programme, the 
Development Banks (and. prea- methods and personal selves but also widening the emphasis is on improving both 

dent ; of me Parana_ State jnaagement. CEBRAE also pro- variety of markets. Ihe financial structure and 

Development Bank): Funds, yj^gg ^ exhaustive range of Response to these programmes Quality of Brazilian enterprises 
he insists, matter less- '-reports’ on world markets ind has fiof been as enthusiastic as' — “shaking up mangeraent from 
human resources. v '* guidance in how to .^penetrate the development, banks had. l0 P to bottom,” as Sr. Fayet 

' - * ■ these markets, information on hoped-^-and only a small part Puts it. 

AnnllPn tax and financial export inoen- of the funds allocated has been Tl} e development bank 

^■JrJr • ‘ ] . tives. help in exhibiting 1 ' at taken up. ^he element of un- officials hope that with their 

The. loans, at subsidised international trade fairs/ and certainty (but not financial risk, urive to teach organisation and 
interest rates, applied by the advice on bow to form export since the shareholder loans torwara thinking they can pre- 
development bank system to pools or consortia based on have subsidised interest rates Vent . timidity, lethargy and 
private enterprise call for pro- Italian models. ... _ and a five-year term) appears Pessimism showing themselves 

jects that are thought through Last year 51S small or to discourage both individuals »n bad times and unrealistic ex- 
in terms of costing, number of medium companies were regis- and the investment banks Pe eta Lons m good times. They 
jobs, potential markets,, expan- tered for the CEBRAE scheme* operating the programme in believe that they have the Reces- 
sion, technology- and- other and thousands of “study hours" conjunction with the develop- sary flexibility, not to say agres- 
essendal factors. Tbis means of courses, seminars and round ment banks. S1 ® n l0 . bnng about radical 

in -practice that the develop- table discussions were held. Overall the 1977 performance change in the attitudes of entre- 
ment banks are trail-blazers; Both programmes, on the of the BPQE and its regional preneurs so long as they meet 
their clients are often inclined development banks own admis- or Stale agencies reflects the with saps Factory response from 
to think more of immediate sion. have ah upbill climb, national drive to increase out- tneir clients, 
results, drawing what credit since they demand revised put of metals and other basic Diana Smith 

they need for current opera- thinking, willingness to spend materials, and also of capital Rio de Janeiro correspondent 

tions and unversed in long- time on market research and goods so as gradually to replace • — - 

range planning. money bn business trips that imports, combined with greater ■mhihmi i i i i mss 

According to Er. Fayet, many may not ' yield immediate emphasis on the poorer, long- 

small or medium businesses results, and courage in facing nejected ^eas of the North 

r>ome to the development banks tough competition from ex- and North-East Last year 36 w 

for loans and when confronted porters of other more mdus- per cent of the applications f 

with the stage-by-stage charts trially organised countries, funded basic products, with H Eg ■ @ W 

and requirements used by the Nevertheless, the experts feel steek chemicals and petro- 1 | g SB 

banks to define credit-worthy that the seeds of organisation chemicals, pulp and paper H | g ffig 

projects admit that' they have that thy have tried to plant are receiving the lion s shar*- | g g 

not given thorough sftidy^ to beginning to bear fruit, and are £274.8m and 8142.5m H B i 

their needs or. potential. After leading to diversification of respectively Another 35 per | | | 8j§ 

that, with the banks’ guidance. Brazilian exports. cent of total applications went ^8 B \ WT 

they work out detailed The development banks have to capital goods. Aj| \ W 

Jl,nosals other special programmes Regional applications dies- g ^ 

The development banks’ train- geared to prising small or : tnte .the shifting balance of ■ f 

ing ambitioim are channeUed. medium businesses from their priorities. Th ® North-East I 

Srougb two schemes— CEAG, current rut of . heavy indebted- received 8488m ^ per cent of | 

■whidrprovides training courses ness and meagre -investment all funds) for industry, trade H 

for small and medium busi- caused on the one hand by in- and ! serrices—a 52 per cent 9 

nesses as a whole, and flation and thin marketsm mcreaSBCornparedwit 19 <6. ■ Institute de Resseguro: 

CEBRAE which . caters for some sectors and on the other The development banks make ■ 

Si or medium companies by reluctance to take risks. no secret of their determination 9 handles aU the reinsm 
Sfc clear export potential,. Through „Pi 0 A r ammes ^^industty and business I p ] aced ^ grasil and a 








■■ - 






Your gate to BraziL 


Think about Brazil. 

We were bom and raised there.. Always 
growing. 

We know everything about it. And, believe 
us, Brazil has a lot to offer. 

Now, if you want to take advantage of it, 
we can help you. Whatever you need to 


import, or export, or invest or know about, 
let us perform all the necessary services and 
operations. 

Saving you time. And money. And 
headaches. 

Helping you to enter Brazil and grow 
with it 


BANCO mercantile: SAO MJLO 
BANCO FINASADEIN\TSm^ 

Avemda Paulista, 1450 - Sao Paulo -Brazil 

•28S Branches throughout Brazil 

•New York Agency: One Wall Street, N.Y. 10005 

•London Branch: The Stock Exchange, London EC2N 1HH 

•Grand Cayman Branch: P.O. Box 500, Grand Cayman 


REINSURANCE INSTITUTE OF BRASIL 

Growing in step with Brasil 


Consolidated Annual Financial Statement 

as at 31st December 1977 


is offering financial aid to share- away from the - privileged r 
ruH by experts who have’ them- holders, the development banks Md overdeveloped areas of Sao 
Sves received intensive train- hope' that small companies Paulo and Rio de Janeiro north- 
ing by the development , bank will increase their capital by wards, Arse lay ftandins inf«^ 
system (which may also call in new issues- and tbat-a growing structures as they did in the 


CONTINUED FROM PREVIOUS PAGE 


credit Automobile . manufac- overwhelming as the steady buted to business headaches 
turers like Volkswagen, General march of the federal Govern- brought on by the past 5 years 
MoTors ^d F^f Sso own ment tatd growing areas ^of upsurge jd raw material and 
nmnnia industrial activity (Brazil has equipment costs, 

financ e p ■ _ -- laraest publicly owned pro- . Meanwhile, although the 

Furthermore. a t ?- CT ductive sector of any country variety and sophistication of 

hesitation ■ when the ® .Qk outside the Clomecon countries), services offered by Brazilian 

ment instituted the sayings book rnnwtinnc commercial banks has preii- 

system in 1976 to provide mam- _ Mergers ^and ferated. the speed of the system 

ing for housing — a ssretem have reduced the number oi checked bv an excess 

operated principrily by ^J3ov- B^Bau rommernal bmnks from J bureaucracy — 'not just in 

emment-owned National- Hous-. 92 in. 1972 to 66 today, and • - • k ^ j n the 

w^tk fBNHV-aod. Fedend vvhiJe ^fer tehjDd these of p b “ t pIe al “ (( ^ ep Z 

Savings Bank (CEF) — com- flte large. U.S banks, JteariU neBlgt t t, rough W hich a trans- 

mercial banks have . ,no>j d^pos 1 ^. (ewflutoig th action must be processed before 

purchased charters allowing of Brazil) afe swelling cames t0 f Eu iti 0 n. 

them to operate as property At. the end of 19 / 1 Bradesco The banks lay heavy stress 
credit companies. . held SI.75bn . in deposits and | Q their massive television 

The conglomerates ' also had lent Sl-65bn; Banco Itau advertising, on the personal 
handle stock, share and. bond, (number two. ranking bank) aspects and, simplicity of their 
operations, separately - fTOra-'$iJ.Bbn aiJd $93Sm. respectively, services but in the major cities 
commercial bank -operations, at further down, the scale the No. where- their interests and im- 
a hi®h profit They are involved 29 and 30 ranking, Banco Mer- pressive headquaners or 
in "insurance compaades as cantil de Desco'ntos and Banco branches are concentrated the 
shareholders, and in leasing Espansao, held $47m. and jmp ress j a n often lingers that 
companies (vehicles, industrial $39:6m -respectivelx- la deposits ^ 5^^ ,- s introspective and 
equipment and data processing and had - loaned v$57.3m and p r0De t0 multiply itself excea- 
equipment, -eapedally);-. ?59 ; Stp. sively rather than give the 

wunniHx network of Brazilian businessmen a r ® moat economic service possible 
tau3rt%S beavaly m debt to the banK „ the CUS lomer. Deep,,, 
from smaller Institutions not Jn and have been so for several Brazil’s population growth. 

ssA-rssrs is. ra - — 

DiMia Smith 


Institute de Ressegurcs do Brasil 
handles all the reinsurance business 
placed in Brasil and expansion has 
brought us to Britain. IRB's integrity 
and wealth of experience is well 
known throughout the insurance 
markets of the World. 

For many years we have been 
transacting a large volume of 
business with International Markets. 
For the past three years in our 
London Office we have been 
accepting a growing volume of 
Marine, Aviation and Non-Mamie 
Reinsurance. 

IRB's expansion in London is in line 
with Brasil's developing position in 
the World. 

Head Olfice:- 

Av. Marechal Camara, 171, 

Rio de Janeiro, Brasil, 

Telephone 231 -IS 10 
Telex 38 2121019 
Cables IRBRBR 

London Office 
14 Fenchurch Avenue, EC3. 
Telephone 01-483 4643, 01-438 1748 
Telex 885469 

Cables BRA3RB LONDON 


Capital & Rosocvcs 

•liSLie; ond pajd-upC 7 p-.l 1 ] 

P 6 fen.es for Cdpil ai increase 
Ollier ?;^cer:es 

Reis Eurance Funds 


Current Liabilities, Provisions 
and other Reserves 

F-j-ier-il Gove-mmeal Fuivds 
purrore Funds 

Lco.il -rU-T er.-n." ck-cco; In ielaiu*d 
!:c-ir, tniiuera 
Eai.mce due to insurance 
aa'npani«3 

Siiiir/picimdc^sari s-lh-K 
birasces 


£ 

S 2 . 5 £ 5 . 55 c.CC 

:C. 885 ,' 3 S 8 .tC 

i 7 .iB 4 .S 27 .Sl 

£ 

S^ 86 a. 6 ». 5 S 

Fixed Assets 

Land and buildings 

1 arm lure, equlpcueni. eic. 
Siatulory mflaiion adjustment 

£ £ 

3 . 709 . 6 W .22 

653 . 483.97 

4 . 508 . 009.48 





M.K 6 . 41 I.S 3 


hrorinmitmii T^irrrm 

Treasure bonds 

Otbw securities 

Fired tenndepcsi Is 
invastaieots 

16 . 505 . 659 .S 3 

177 . 483 . 219. 06 

17 , 591 . 730.76 

1 . 433 . 927.38 C 13 . 019 .S 37 .Ji 

44 . 30 I. 7 C 7.43 

r 3 . 47 B. 40 U .74 

£ 0 . 554 . 374.23 

153 . 733 L 4 v-i.S 4 

Entailed Daposits 

Foreign Cizurocy Deposits 
Current Assets 

E<epcats retained by insure is 
Ealonae due by insu rers 

Sun dry balancse 

Cosh al Bankers and in hand 

6 . 502 . 079.15 

7 , 155 . 944.91 

33 . 514 .K 

42 . 936 . 171.69 

4 . 550 , 525.75 

10 . 697 . 25 O. 3 h 5 ?. 217 . 4 t 2.^3 


2 S 2 .:? 7 L !!.34 


292 . 307 . 3 JJ .34 


Consolidated Income & Expenditure Statement 

for the year ended 3 let December 1977 


hlCOTOO 

liV-W-masl S1CC-31C — 


• i-l.'WL.lSib.ij 


Expendilare 

O umuasioii — nel 
diai -us — i:et 

Terhmcrsl reserve adiuEU'je.-iU — iri-t 
T : n-inaal expenses — nei 

'-•■iierejcpenijia 

f.'H u i oppfcpriobcns ir^v.ieiiw J ai s h 

li:iiLx»r<jf.nc!iee] balance u per Fakur-e Snee: 


I5I.207.TiS.e9 

E>wi i-; iii -■ 7 Bl«n Givemr x n! •iiiaran'“. US's T^tnauianaa 
cpswj-r.-r. c-:.i r in Ercjil ca 3 i K -sfcwwa. can rely «i li:e 
li r-,1 


20 S67.j3't."2 
o0.2i7.^:.?. - 
i8.ri. S3?.!;. 
1 I 3 !. 5 B 4.:2 
13 15 t.&?o.l 7 
^.376. 7 7 2 44 

43.s42.12S.1C 

1^744.^4.75 
151. .'AT, 736.69 


Ourr-ital & p*v.rv« ST 3 .£ 3 ti. 5 :• 

A j ill 1 :-jval Opt-rcuon F und ?• I -t 71 ^ ,5?1 9.^: 

F-: r ".95 C- j rT 6 7 . ry lS. 0 Ki. 139. 12 

T'-’-asiir^Brinds &• Other S-- rurrjes 
F:xvJ te:Tii aep T'Sits - i • ;Ci 7 ri 

il-ihw mv«».a mr-ns '•! 1 . 4?2 '/J’.SS 

unladed d>: p<«:is £.p, SCI. ( 179.25 

Pi cv_ 30 i. t:i kaengu cu:r«.-T’ 1 : .t-.-t. 


ia-7orpefa!?d.in£riU wiin limiicd Iwsiliiy. 


*. • ’’7: iSi- 1 .-1.^. >• 1 • - 

:S Hrs' , V‘- V V-'.. ■' • :• . 





git m 


S.f,! Sf3j| 
slllls 

i*;;, =*;' jsrAg , f 
SSJSliSlfl SM!% *» '• 

;'s rSj'll SB' 1 ! ! wfcRs Ml : 




New way to Brazil 


N 


2 Finch Lane 

the new premises recently inaugurated forthe London 
branch of BANESPA. 

One of Brazil's largest banks, BANESPA opened new 
offices in Paris on 25th May, and subsequently intend 
to have further branches in Madrid and Mexico City in 
the very near future. 

BANESPA has .450 agencies throughout Brazil, and 
foreign representation in Asuncion, Tokyo, New York, 
Los Angeles, Frankfurt and Cayman. 

We wiii be glad to advise you about the many 
business opportunities in the expanding Brazilian 
market 

2 Finch Lane, London EC3V 3NE 
Telephone: (01) 623-2291 
Telex: 888839/887996 
Forex: 8814963/4 


Banco do Estado 
deSaoPauloSA 






t 


i 


FINANCIAL TIMES 






Brazilian Banking and Finance is just one of 
a series of Surveys the Financial Times is 
planning to publish on Latin America. > 


26th July 


2nd October 


Central American 
Banking and Finance 

Santa Cruz 


10th October Venezuela 

24th October Brazil 

21st November Argentina 

For details of these Surveys or any aspects of 
the Financial Times, please contact : - 

Simon Timmis, Overseas Advertisement Manager 

Bracken House 
10 Cannon Street 
London EC4P 4BY 

Tel: 01-248 8000 Ext: 276 Telex :• 885033 HNTIM G 


THE INSURANCE industry in obliged to follow. They bav^coHiparable to that in- Britain THE TOP 20 

Brazil, tforaigh small by the legal force and companies fait 7 or the U-S. -The .continued high/ 

standards of the major indus- log to adopt them are liable to. rale of inflation makes long- rwuiOANIEK 

itrialised xwtions, fa aftaertheles^.peMities. There are mspectap'tCnH savirn^. ^ baztfdogF.jirO'- uumraniw 

quite important to the economy who examine regularly -position. Y erf. ittuc indirt&Wl -u,. . 

of the country. It has been in books of companies to enswfc4|i business fe trw»a^r«M <** , 

existence fbr many deeades bat compliance. SlISEB in evg&.-most comes through -.gfiw® .life America Terrestres l«u.o 

has taken the Government-coo- case bas to approve the poliiy/^cbcmes .arranged by emplbJexa international — .. — 106J2 

trolled roate to development wordings. --- tiitfder which terms are reflOwedt ^n 77.4 

instead of the free enterprise- The level .of technical: fetch year. ' ■ ‘ Sol America Vida 72.7 

system, that' has established rOservesto be held Is i*gainQ*£.' ,Tbe driving foroebehisd the A H *«tira 72J5 

itself in, fcr eampie, IheJJR.ddkttd according to' a ' S&riasurance operations in - Brazil n - . . *V _ n 

Consequently it is a regulated, formula. Companies: have AfiSas from tb« Ota The Indus- » apd elrante w w 

market with controL exercised. calculate reserves opce a xnonik <&y has established certain coin; Bras “ .-. — - 5R - 6 

at the r top Ijy Government md ehahge the investjnefet/mi tte es Jointly with the TR R National 54.2 

apthotBy, but with the rnsur-. pattern to meet changes fa that make rerommendj thins to Bamerlndus 43.5 

ance companies themselves jure- reserve levels every ' quarter^. RUSES’ on rates and conditions: Mlnas-Brasll . 40.7 

domina^y privately owmsd. >. * The companies bay e >to' Althoush they nwarf- the «. 

Theindustiy is superintended submit quarterly returns, tite»p pr0 val of SUSBP to become 

by a, body known as SUSEP. form of which is laid down very operational, in puny 7 cases this r * KUst * - 

which is responsible to the rigidly, r • But ' SurprisingJs ^ forthcoming. ' So the ideas Uni * 0 35.4 

Ministry of. Commerce and In- enough, there is a fair degree for change and development AUan ca da Bahia ......... MJ5 

dnsfiry. This Is a -fiscal body of flexibility in the investment ’ come from the Industry in many Boa vista Vida 3L3 

which regulates insurance com- policy of insurance companies, oases, but on an industiy basis . Generali do Brasil ...... 30.8 

pames m a very close manner Here the Government operates and within the control frame- iu. mi 

covering almost all aspects of its controls on reasonable line*.-^ rk . There is also the Federa- .. ‘ " 7 ’ 

their operations. •• and companies have a. certain ^tion of Insurance Companies ^® rfc ^ re ^' orcov *»° r- 

It will fix the xxaonn^ ^-(tegree. of freedom. Investment -(FUNENSEG) which advises on CBmind ■ ............. ~ 7A 

registered capital of the com-poliey will be determined to-a insurance policy and at the other Vera Crux 35.1 

eKtent the “ ethod S! end there is CNSP, the national Note: Conversion at Cr. 17.70 to 

technical iimiSf -nndiSr. wb«a calculating, reserves. These wffl insurance council, a ministerial the dollar. 

msorance^ ^^unpan^ cxn need t0 be .at Least part covertKi committee. «. 

S CavernmenLMn^; The policy ^ Government & Magntae. 

of bnsiness WhiS^^aii be re- in^^wty and. to: - a ^Lrasible GROWTH OF PREMIUMS 1977 


(The 10 leaden— i»er cent) 


These limits are-determined by Government Maya down, what: , ho * 

very pretSfe formulae and do propoftion ot the value catHfe JJ'? 

not provide much flexibility of setriSainst liabilities, <3m ? n( j y - ^tns have been Bandelrante — 47 J! 

operation. The tele system ot example, if the company VenCn “ * — 3 * ,s 

determining teese limits is cbm- office^ 315 

plex but fte aim is to ensure pietely for its own purpose ^ ^st^theMThe^^sriS B**** 0 *™ — - — 28.0 

^ ^ Kn ^uSbSU^ Allaneada BahaU ...... 24.S 

never extehos itself in the risks the value. But if it -rente -ent • ^ ^ _ 

rnidm^en- «ul that th. Utter partTfthebuilding ttotosn .****? 1 rtlnmr - A0 “ U “ ■■■; 

an- wen within the ciaitn- Sen iteS oS ™?MperS ““ P™ 1 **>"*,£• «“£“<« Cemtod 20.9 

settling cnsadU of the indi- 0 f the value against liabUitte. 1 “ Te to * ccepl wiUl0 “ l ViGhon- SOnasBrasU 1«.« 


vidual company. The settlement of- large. .— «- , Forte Segnro 15.4 

. m claims is controlled closelyjgr ()ilS6tS •-* 

Sururmne • the mB. companies can A® ^ ." RETURN ON ASSETS 

^lup&utug claims up tf double the te^- Then IRB has reinsurance j T he 10 i^denw-ner **nti 

The formula is the same for nlcal limits without reference treaty arrangements with other ieaw»-per eenu 

each company and does not take to the IRB; otherwise the IRfMer World insurance ce n tre s 'and. Ajax ; • 63.5 

into account the class of risk. It involved. : -"V. offsets outflow, by accepting Comind . ■•9,>M<M«iiataiitaa 60.2 


Surprising 


Forte Segnro 


into aerountthe class of risk. It. involved. " ^^ . offsets _outflow . hy accepting Comind 60.2 

may seem surprising that the Thug the size of tee i ns or m t reinsurance from the <rest of Boavista Vida 5A3 

same limits apply to, say, a companies becomes very the world. One particular case Atlantic* . .. 54.0 

first-class firm risk as that portent and the laige eomps^^ with a Lloyd's syndicate has n„| M 

which is regarded as potentially have an in-built advantage iiiS&t. received - world headlines. ^”7? T?‘r 

very hazardous. But it does as insurance brokers ‘are 3§p- Finally, thn insurance Industiy ywksiuwKworcovad o ... 48.9 

make reinsurance by the IRB cerned. The large compaas&4M»5 a frc^y from the Govern- Std America Tenertra 4A3 
easy. can settle claims at a iriSir ^ jneuL.ta;. guax^nteod co?er Bn^U 46.0 

The IRB is the Government higher level than the sn&Rer from tke Treasury. By such PanllsU 44.1 

controlled reinsurance company and thus have more freedbm ol means, Btaril cpn underwrite a Baadrirante 41.5 

which plays a very dominant action. This factor is v^ry np.ro, interitefly, A. - • • — . ' . ■ ;■ 

role in the running of the conn- portent to insurance ■ brokers Sffl, ^ettertion^ertL . . . . wunnc *- ' H **** lne " • 

try’s insurance industry. All operating in Brazil-, who will /dxpeneeee of lhe 

risks above the limits laid down tend to place rides with com- instance. ^ industry. hKS“ heea ' jf. 

have to be reinsured automatic- - panics thatr can 'settle claims r^ravely.-gfeod;, Brasil Is pot . 
ally with the IRB. By applying- without going to the IRB. sra|ectVtn ;e«ren» hatt^alTGanimi .... 


thet same limits to all risks the All risks in Brazil have to be boards like iafcth^baifes 
IRB automatically avoids selec- insured with insurers registered severe hurricanes. Ay tW 
tion against jt by the insurance in Brazil and. all reinsurance sfiory^H indultry develops < 
companies. . Under less con- has to be offeed. to the IRB. shRfrii^^shnrih In' insure 

trolled methods companies Insurance companies are not cah tei&pected to fjfflow.xrL 

would keep a higher proportion allowed to be controlled by wake. The UK insurance ®>h* 

of the better risks than the foreign capital. For general brokers are now becoming Mlnas-i 

poorer. - ... - business not more- than one- increasingly active ha this Genera 


rtipn^rtL . .. . : flMsmuw., . 

%gS5..-»^S wnos 

-i&odL;, B^r 11 ft pot ' JT* 1 ® U Iwest-iperiwirt) 
tn .etoentt ' hattiralTCominii ;.. MH J33A 


ates an a complete system of owned outside Brazil, while for Prospects look good, 
tariffs which are fixed by life business no foreign capital . ' v? ■ 

SUSEB for most classes of is permitted. .V _ - ■ B<n 

business and ' companies are Life business in -Brazil is noti -.7 - 


BWU Brasil J 

Enc Short Sonne: Exame Magazine. 



*7. 7 U 

~r+' 

*2X2 f 2 * 


285 } 

«.■** . 

36.4 V 

.... 

32.8 'jt 


33.7 - 

.... 

33A ^ 

.... 

33.9 t 

.... 

35 J. v 



BRAZIL’S REINSURANCE own - limits throughout the 
community has attracted an market. If local capacity is 
unprecedented amount of atten- insufBrient 2RB approsdQes out- 
tion in recent months. . Un- sides .reinsurance markets, 
fortunately this has been the " mfi’s fortune are in znany 
result not so much of important respects yoked to the ambitions 
development’s within Brazil’s of the Brazilian Gover nm ent, 
own reinsurance markets but of which is anxious to posh the 
a long-running and contro- economy to a top position. Back 
versial dispute betwee Its i p 1971. the Conselho Narional 
national . reinsuranc e g roup, de Seguros . Privados, the most 
Instituto de. Resseguros do important, insurance regulatory 
Brasil (IRB), and a Lloyd’s authority, which includes six 
syndicate headed by Mr. F. H. Minis ters of State as well: as 
Sasse. • tee president of the IRB on 

But IRB is something more its Board, that it wa? its 
than a - character in the pro- intention tp raise the B razil ian 
tract ed Sasse -drama. It is the insurance market capacity to 
sixth. largest reinsurance com- 3 per cent of Gross National 
pany in the world. . At Decern- Product This proved to be too 
ber 31 last its fixed and invest- optimistic, a target,, capacity 
ment assets were over £280m, growing- to only 2 per cent of 
and capital and reserves over GNP in 1977. 

£82 m- Its share capital is owned Even so, the rate' of growth 
50 per cent by' the individual has-been rapid in the domestic 
Insurance' companies and 50 per market. But there are now 
cent by the Brazilian Govern- signs that Brazil is turning its 
meot, which guarantees HtB's attention more to overseas 
reinsurance operations both in markets, in an : attempt to 
Brazil and abroad.; develop -and consolidate its 

- It is one of three bodies overseas . reinsurance interests 
which exercise important con- further. 

trols within the ■ Brazilian The . Government announced 
insurance T community, which recently that a new focal point 
has been described as the most for Brazil's overseas insurance 
disciplined market in the world, interests was to 'be (seated in 
IRB's responsibilities'' not the U.SL : There;' a new reinsur- 
only include .the acceptance and ance -company is being set up 
arranging of reinsurances. It owned by Braziian (through 
is responsible for the fixing of IRB) and international •con- 
operating limits of insurance cems.-. . It may -hove left -this 
wfthJn the Brazilian market. It development a little late in the 
also' authorities claims settle- day for further penetration into 
merits above certain technical the UB. market; hecanse the 
Iimjts, again' fixed by the ‘ IRB. capacity problems within the 
and controls and’ handles all American markets of the past 
operations overseas, or In- few years look to have subsided 
volvjng foreign currency. at the moment. 

IRB sets the operating limits Other developments Include 
for each, class of business for the setting up .of a tripartite 
each insurer in accordance with reinsurance arrangement : be-, 
that insurer’s assets, .-size and tween a. Brazilian conglomerate, 
share or the market .portfolio, an American -broker and', a 
Any -am du n I In excess of ibis newly formed UK reinsurance 
limit must be reinsured with broker. Eluma Industria e 
rhe TRB, which in .turn will Comerrio, a leading Brazilian 
reinsure-; any excess above its conglomerate, ; has established 
CONTINUED ON NEXT MGE ;• ■ 


TO 


JOINT VENTURES/LICENSING— 
spefci ^as&ting - European 

companies create income from Brazil 
‘—a profitable alternative to exporting. 

BUY BRAZILIAN— We seek com- 
panies interested "in trading Brazilian 
products -particularly riato Africa and 
the Middle East 

Post today without any obligation. / 
or telephone: 0905 23699. 

Telex: 43524 Brasops G. . 

BRAZILIAN EUROPEAN 

4 Bank Street, Worcester. 
Associated Offices: 

Amsterdam, Recife, Salvador, Rio de 
Janeiro, Dusseldprf, Sao Paulo, Port- 
Alegre,.; .-Geneva. 









r> 


r. 

’-.V' 




•X 


'-'t- 










“ 1. 




4S0PS 


■*'e \ 


H 


:ii 


lAbii* 


Stock exchanges 


seek new investors 


Rio de Janeiro 


THE RIO de Janeiro stock ex- 
change is normally over- 
shadowed by its Sao Paulo 
counterpart but on June 19 it 
set a new turnover record for 
itself and for “black" share 
deals in Brazil. Dealings 
totalled Cr310.7m 1817.5m) 
thanks to a surprise auction of 
40m shares in the petrochemical 
holding company Uni par (.which 
has Italian participation). 

Individual investors and in- 
dependent stockbrokers were 
edged out of the transaction by 
Urtibanco. the banking conglom- 
erate which not only handled 
the transaction on behalf o fthe 
Banespa (Bank of Sao Paulo 
State.) group— which does not 
deal on the Bio de Janeiro ex- 
change — -but also purchased 
38.17m of the 40m shares 
through its Banco de Investi- 
mento do Brasil. 


experts feel, encourage other 
holders of sizeable portions of 
shares in viable companies to 
offer other block deals on a 
market that is now warming 
up and where the institutions 
are scouting for new shares for 
their fiscal fund portfolios. 

The growing dynamism of 
of the stockbroking activities of 
the banking conglomerates 
raises some questions about the 
scope left for the small indivi- 
dual investor or independent 
stockbroker. The former, in 
particular, are encouraged to 
deal on the stock markets with 
financial assistance in pur- 
chasing shares if necessary 
while, simultaneously, the con- 
glomerates are encouraged to 
broaden tbeir activities, an 
apparent contradiction that has 
yet to be resolved. 




• tm 


D.S. 


In fact Unibanco has passed 
15m shares on to Banespa 
which it is reported, will place 
this stock in its “fiscal fund.’* 
Thus Unibanco has kept 23.17m 
shares for its investment bank. 


Sao Paulo 


Another bank — Banco de 
Boavista — purchased lm Uni- 
par shares for its own “fiscal 
fund.' 1 These transactions mean 
that something over 30 per cent 
of all Uni pax’s shares are now 
held by institutional investors 
and Rio experts are. of the 
opinion that the events of June 
19 could herald a resurgence — 
following this year’s relatively 
quiet first, half — of the sort of 
mass institutional dealings that 
have characterised earlier 
booms on Brazilian stock 
markets. 


FOR several years now, the 
Government has been taking 
important measures to 
strengthen the capital market, 
which is still an underdeveloped, 
fragile institution in Brasil. 
However, results so far have 
been modest, perhaps reflecting 
the continued strength of an old 
tradition, according to which 
personal contacts are all- 
important, even in business. A 
strong cultural resistance still 
exists against rational, im- 
personal investments, that are 
solely ruled by cold market 
trends. 



The Rio de Janeiro Stock Exchange. 


The Unipar offer was the 
largest single offer of shares 
ever made in Brazil. For the 
seller it yielded Cr228m 
($16.2m) — 93 per cent of the 
day's dealings. 

The success of the deal will. 


None the less, the shortage of 
risk capital is clearly hindering 
private investment When ex- 
panding activities, companies 
are forced either to obtain 
cheaper Government financing, 
with ail the red tape that this 
involves, or to borrow on the 
money market paying the 
absurdly high rate of 50-60 per 


PREDIUM 


PROPERTY 


CONSULTANTS 


AND 


DEVELOPERS 


JOHN 

VALASCO-DE ARMAS 


. Principal 


RUA MELVIN JONES 

3545/1005 

RIO DE JANEIRO, RJ 


Tel : 221-1448 
Telex ; 212 3323 FPGN 


cent per annum. 

Undercapitalisation leaves 
Brazilian private enterprise 
vulnerable. Unless the high 
costs can be passed on to the 
consumer, the company can 
easily end up in bankruptcy. 
The Government’s recognition 
of the companies' fragility has, 
understandably, made it reluc- 
tant to enforce regulations with 
sufficient rigour. 

The Geisel administration has 
taken significant measures that, 
in the long term, will undoubt- 
edly strengthen the market In 
1973, it gave foreigners permis- 
sion to trade on Brazilian ex- 
changes and opened special 
credit lines ( PROCAP 1 ) to 
finance underwriting and pro- 
vide funds for majority share- 
holders to subscribe for new 
issues in their companies. 

In the same year, it provided 
the market with some powerful 
new investors. The Government 
derided that the enormous PIS 
and PASEP social funds should 
invest part of their resources in 
stocks. It also raised the maxi- 
mum proportion of insurance 
companies' reserves which could 
be held in shares from 20 to 45 
per cent, with a minimum of 
30 per cent. A bill regulating 
closed pension funds was also 
passed by Congress last year, 
creating another institutional 
investor. 

The short-term impact of 
these measures has been dis- 
appointing. The capital markets 


have continued jittery. After 
an excellent performance in 
September, trade fell off -badly 
in the last quarter. 

The Government took fur- 
ther measures. It created PRO- 
CAP II and FINAC II to pro- 
vide financing, at subsidised 
interest rates, for long-term in- 
vestments in the underwriting 
of new issues. Performance on 
the markets has picked up 
greatly this year, but no-one 
knows for how long. 

There have been mixed re- 
actions to the entry of large 
new institutional investors on 
t he markets. Some bankers 
have approved the decision, say- 
ing that, as well as furnishing 
additional resources, the insti- 
tutions have the infrastructure 
to carry out better market 
analyses and therefore to bring 
a greater level of sophistication 
to buy and sell decisions. 

However, brokers have com- 
plained that it has concen- 
trated decision-making power 
In the hands of very few people. 
This not only destabilises the 
market, because of the increased 
chance that buy and sell deci- 
sions will coincide, but it also 
means that, as Sr. Manoel O. P. 
Lopes, chairman of the Sao 
Paulo exchange warns: “The 
presence of a few forces with 
the capacity to manipulate the 
market at their pleasure causes 
distortions which drive out the 
individual investor." 


Reinsurance 


CONTINUED FROM PREVIOUS PAGE 


a reinsurance broking company 
with Willcox Baringer and Co, 
the oldest reinsurance broker in 
America, and Robt. Arnold, a 
UK-based non-Lloyd’s reinsur- 
ance broker. This new com- 
pany, the first tripartite 
broking venture of its kind, is 
to promote the exchange of 
reinsurance business between 
Brazil and both the American 
and London markets, as well 
as managing on an agency basis 
Brazilian underwritig interests 
In London and New York. 

Brazil is certainly not lacking 
in courage in attempting to 
develop its international net- 
works. Conditions in world 
insurance markets could hardly 
be worse. Other reinsurance 
markets have been less 
disciplined than the Brazilians. 

There is too much capacity 
rhasing after to little business. 
Many countries have decided 
to expand the classes of busi- 
ness which they insured after 
the good years of the early-TOs. 
To do this they have undercut 
existing rates and bitten deep 
Into other markets. As the 
volume of capacity has grown 
so the rates have become 
keener in order to attract new 
business. 

The result is that many are 
being landed with clause? Of 
poor quality business they could 
well do witbouT. written at very- 
unprofitable rates- . To some 
insurance men the* position can 
only he r waived by a reinsur- 
ance company susiaiumg >u£h 
heavy losses that it ?oe$ out of 
business. A shortage* of capacity 
will occur and then rates will 
harden. 


But there is no reason why 
Brazil should be making the 
same mistakes as overseas 
rivals. But Brazilian Govern- 
ment policy for increased 
invisible exports could perhaps 
cause eventual headaches for 
the country in present market 
conditions in the reinsurance 
sector. 


In its efforts to preserve 
foreign currnecy ERB has 
attempted to impose on itself 
burdensome exchange control 
restraints. Accordingly, some 
multinational industries in 
Brazil have found themselves 
with half their consequential 
loss policies reinsured with the 
Brazilian Treasury. 

But even if die outcome of 
the Sasse affair makes Brazilians 
more cautious in their dealings 
with overseas markets there is 
still a relatively raw domestic 
market to be tapped. Industri- 
alists still only insure when 
legally obliged to do so — and 
there is little penetration of the 
personal insurance field. IRB 
itself has indicated that it is 
aware of the vast persona! mar- 
ket which is there and has asked 
for assistance from the insur- 
anee companies on how best 
to develop it. 

Brazilian insurers will also 
be helped by the Government 
commitment to build on tile 
iUcn.cib ol the compame- 
operating wilhm the local mar- 
kei rather than allow new in- 
surers entry to cream off any 
domestic business. 


John Moore 




We have a close relationship with 

BANCO DE CREDITO NACIONAL S.A. 

This long-established commercial bank has a 
well-spread network of branches in 
Bra 2 il and, with associated companies 
of the BCN Group, provides full 
banking and allied financial services. 

Get to know more about how 
we can help you in your business with 
Brazil. See your local Barclays branch 
manager, or get in touch with our 
International Division at 
168 Fenchurch Street, London EC3P 3HP 
(01-283 8989 ext 3218). 


j 



BARCLAYS 

International 



tfi /y — r 'y, '' 







J 


28 



Financial Times Wednesday' June ' 28 1978 

Over £4m advance 


Standard Chartered slows in second half 


WITH SECOND-HALF profits only 
marfcinally higher at £S3.68m 
compared with £G2J27m previously, 
taxable profit of Standard 
Chartered Bank ended the March 
31, 1978, year ahead from £100.94m. 
to a record £12fi.I5m. 

The figure includes an £18B7m 
(£13.18m) contribution from 


£41.95ra (£34 -23 m). 

.With minority interests taking 
£S.32m against £S-28m and extra- 
ordinary Items £ 1.64m (£0.9m).- 
attrlbuubic profit came out at 
,£52B7m (£47.4m). 

Earnings per £1 share are shown 
at 7S.9p («9.9p) and a final divl- 


1 9.3306 p net. If the ACT rate Is 
reduced a supplementary pay- 
ment will be paid in January. 

Dividends absorb £13.48m 
(111.97m), leaving retained profit 
up from £35.43m to £39.39m. 

Sec Lex 


Record 
£843,696 
by Halma 



INDEX TO GOMPADT HIGHLIGHTS 



Company 

Page 

Col. Company 

Page 

Col. 

Bardon Hill 

28 

1 Joseph (Leopold) 

30 

5 

BAT industries 

29 

6 LCP Holdings 

28 

5 

Bo water 

30 

3 Northern Goldsmiths 

28 

4 

Caird (Dundee) 

29 

3 Press (Wm.) 

30 

4 

Century Oils 

30 

1 Property Holding 

4 Rerrwfck Group . 

3 Sears Holdings 

30 

4_ 

1 

4 

Davis (Godfrey) 

28 

29 

Equity Consort 

29 

5 SGB Group 

28 

8 

FJ4JF.C. 

28 

4 Smith (David) 

28 

5 

Guthrie Corpn. 

29 

4 Standard Chartered 

28 

1 

Halma 

28 

1 Tecalemit 

28 

4 

IXLGas 

28 

7 Tocfay’i meetings 

30 

5 

James (Maurice) 

28 

2 Tran wood 

30 

5 


• Ctnxent 

. payment 

BAT tad* ... 2ndtm. 3.05 

f « i a Bremar Trust . L0 

‘ond half 

Balma ............. L4 

the various tax advantages and imperial Qmt Gaa2ndint 5-SlH 

strong residual values has led to Maurice James :. 0.5 

boom conditions in contract hire Leopold Joseph ; 6.73 

and leasing while the rental Nthn.~ Goldstoidis . ......... m 

activities have benefited from Property Holding «mt lirr. 4.04 . 

price increases and a very high Ren wick Group 1 

utilisation factor. Given these Rlverview Rubber 2ndmt. 4** 

conditions the Ford distributor- SGB InL 2.73 

ships have performed equally Sonic ' L48 

well. The motor industry is look- Standard Chartered 1L6 

ing for a record year in 1978; and Tecatamlt 8.65* 


DIVIDENDS ANNOUNCED A/tCl 4/flU «08 

' Date Gone*' Total : Total. •' ■ . L.V ^ : 

Ctnxent ' of spend tog for. - 1 m* "' ' J" "IT* air* 

■ w ”“ t 2 ? . : 3E tor i t tras 


July 28 
Aug. 17 
Sept. 13 


July 35 3.71 

Oct. 3 — . 

Aug. 15 3* 
Sept. 21 . 2J5 
AUg. 25 1.46 
Aug. 18 1083 
Aug. 5 1.93 


FROM TURNOVER' 2L6 per cent Power and Ught. the North Rra 

'.higher at £l54JS4m, taxable profit gas producer and oil explorer, 
of Imperial Continental Gas Aero- reported higher projts. ^ JJJ 
ctatfon rose 18.7 per cent from distortions JJg 


allowing four 


Ss to“tave°?SetL bSTSSS curfei,t period and as toecast w&vr 

at 87 Ip seem to be over-reacting 
to this point on a p/e of SB and 
a yield of 5.8 per cent, covered 

nearly 7 times. ", I lofiiir* n n a rn a'n n ‘a fj 


sepT 8 - - - • Si : SSS SmSWIS Sa &3 S^hto ir*. 

Aug. £1 nff . 1 SI, 1878 yw. At half-time profit »«** *“JJ 

— f 05 |g TJa was down from£L28m toJEUEto VtSfwS dJe 

uly 25 3.71 634 5.31 to a changed rating follow tog 

let. 3 — . • JL . — 5““® indication^ a 50 per cent dm* 

Lug. 15 3* — 10* ewige* of 4^4 increase if UK restrictions 

•ept. 21 . 2L5 — i_. . 5BS ( fttAlm ^ ^ ^ are removed from August I. The 

Lug. 23 1.46. 2.32 . Z»j oi JS&&L -iff!*!!? p/e Is 82 and the yield, aasum- 

s*. “ “Ss -a? a? ag.^sawggtss: b j& ywvaf* s& ; 

“ga SS5^tt*aJ*t.SSrT55«!. L 

■sSsTNS.® -SrSwfe-* 5 ' j 

minority totals, <rf mL.080 


Tecalemit 

Sales for the year amounted to profits of £219,520 ( £149,709 loss), IHYYlTlC If I . K riMIIIN ICV ' »frecto« Intend Terommendhut a" O vv '* J 

£ 13.1m against £10A9m. Net the directors said second-half 111111115 IXr " ^ • 3.444p final at tile August AGM, 

profit was £561,000 (£405,000). prospects were encouraging and * * unless Government policy toaMs REPORTING PRE-TAX profits 

The net dividend is the forecast continued profitable growth was £■'’5 - • AM 4t inappropriate. If the final Is ahead from £3303,000 to £4,432.000 

7.&p (2.6p) and earnings per share anticipated for each division. T, l. / |¥1 ft f o /\ Jl /m IfM . paid the total wtB be IS^Spu Jf. fbr the half-year to March SL, 1978. 

are stated as l8.4p (13.7p). They now say further develop- I T jfal . /J 1 1 not. the payout wlU rise from ** directors of SGB Group say 

Mr. J. Gregory Tom, the chair-- ments are well advanced to WITH PROFITS showing an * m " * " ■ ■ ■ 83BB72P to 8B09p. • the second-half has started well 

man, says that with minor excep- Improve the net worth of the advance of 31 per cent in the . , „ The group's prindpal UK subsi- ® nd another good year is m 

tions the operating companies company. year ended March 31, 1978. tCP Holdings, the property, On the current yrar, dm Board diary, Calor Group. lifted turn- Prospect 

increased both sales and pre-tax Following the restoration of Tecalemit plans to boost its divl- manufacturing and distribution says the group has made an over 22 per cent -to £151B7m and The recent -trend of Increasing 

profits (op by 232 per cent) dividends with an interim of OAp, detid total from 322p to 5.47p if group, is planning to raise £42m encouraging start despite, di meaft pre-tax profit rose from £8.47m profits at home, and declining 


ISSUE HEWS AND COMMENT 

L C P rights to 


L C P right 

raise £4.2m 


^£135.000) attributable profit came 

at n722m «fcain« JElhAQm _ 

i^sars ™ ^ SGB ahead 

h&18m (£5.07m>^ appBca- k,VJA ' ttUVW “ 

F ifea of ED IS. SwEQinae per £1 . • '-» 

L-ahare are shown at «js 2p nfiri Q A rip 
r:;(89:Q2p). and hududing tin Del- HliU i3LCo 
tjan operations at ^38p (51-3ftp). - 
A second interim dividend of _ J ___ __ 

-SJBQSp has been declared, and O^OOfl 
■ directors intend a' J 

3.444p final at the August AGM, 

unless Government policy tnaMs REPORTING PRE-TAX profits 
it inappropriate. . If the final Is ahead from £3.503,000 to £4,432,000 
paid the total wiB b« isjs« ■ if. fbr the half-year to March Si, 1978. 
not. the payout wiU rise from Dm directors of SGB Group say 
£n972p to 9206p. the second-half has started well 

The group's principal UR subsi- ^ another good year is in 
diary. Calor Group, lifted taro- Prospect - 


despite the con tinning low level of a final of the same amount makes statutory limitation 
activity in the construction the total foijthe year Ip net (nil), expected, on July 3L 


FOLLOWING A rise from £170.107 industry. from stated earnings of L4p per ^ ^ ^ aimottSrospre-tSVofits f to: 

to £403,661 at midway, pre-tax The major part of the ©roup's dry 20psharo— the last Parents ^ how^er^bre the date of the ^rtoMan* a 5 M2 m!au£- 

profits Of n. aim a wen ahead at a and coated stone is used for road amounted to 2p gross in respect AGMi on August 4, the Govern- pared with £3.Bxn on sate £29m 

rocord £343,696 for the year to maintenance in the Midlands and °f 1371. ment moves to extend the neriod hfe'her at £ixa.4m. The riehts 


record £343,696 for the year to maintenance in the Midlands and 
March 31. 1978, compared with the the current cutback in govern- 
previous year’s £560.758. Turnover ment spending on road main- 
advanced from £7.97m to £9.B2m. ten a nee can only be a holding 
In January, the directors said operation and wiU lead to a need 
that first-half results reflected a for more substantial maintenance 
further indication of the growth programmes in the future, 
potential of the markets In which Following a successful year the 
the group was now established crane and plant hire companies 
and forecast that full-year profits extended their range of equip- 
would be significantly higher than ment and continued the policy of 
for 1976-77. replacing much of their older hire 


The full-year result was struck fleets. 


Godfrey 
Davis at 
peak £3.7m 


. . Th i'SS company DESPITE forecasts In November ISfi'ttat' Sf lK SE 


statutory limitation ends, as by way of a rights issue. trading conditions to the enein-_- to no.8m after depreciation of Profits abroad continued during 

expected, on July 3L At the time the company eerine i an lJ 1 ?f? ls -f i !T 1 2f'44«2 f7 - 97m 'the first-half, the directors report. 

The proposed final is S.6482p— announces pre-tax profits for the Cood tr * dln ^ rowtito to Ireland although there has been an 

if however before the date of the year to Ma rch 31 of £42m, com- ?* the. peak profit. It improvement to some overseas 

AGM, on August 4, the Govern- pared with £3.Bm on sate £29m 2™ tochides £026m on the sale of the companies, particularly Holland, 

ment moves to extend the period higher at £U».4m. The right's Sti. * asets Gator Transport Inter- First-half profits were after 

of restraint and if the ma xi m u m issue is of &D90.386 ordinary 25p national In Germany and pro- lower interest of £727 D00 

increase allowed is less than the shares at 72p per share, on a rtsion for an expected loss of (£940.000). Attributable surplus 

amount now recommended, a new one-for-four basis. In the market “materially .exceea xnax was H>.67m on the disposal of shares rose from £1.65m to £2.02m, after 
proposal will be put forward at LOP’S shares dosed lp Wgh»w at ye 2£‘ Ruminant Nitrogen Product* tax of £227m (£1-81 m) and 

the meeting. 90p. ^fitefS^ESn to a to ^ 04 Som £L7to tea mtoorltka. 

The profit increase to a record The sew duxes do not cany the ra (4291 * written off to respect of the con- Stated earnings improved from 

£3.7m foDowed an advance of 5S right to receive a proposed final Thr^Pensnett Tr&dine Estate verslon of Imtane cyfindersfo the 7J»p to 9.7p per 25p share and the 
per cent to £L68m at halfway. dMdead of i79p p^^hare for w£ retmto^at ShSLjS convenient “Switriron" hrterim dividend te stepped uo to 

At that time the directors stated 1977-78 hut, barring^vidend con- atouenmaAet v^ue on the j^STOrtem. The total COStoTthia *.75p (Mp> net— last year's final 
that provided the buoyancy of trols in force after the current of its use. at £19.7m, rep. conversion is being spread over wa» 2.7 , S4p. 

ord .!!?.f or V tl S ued ’-. It l***™*™* «*J*lro and any resenting atfirplus of £2,6m pyw •«. ' 


Capital 
>r cent 


(Uture wax 58.9 
v than in the 


comment 


debit) and minorities, attributable tions, further progress in the leavin'* taxable profit of Godfrey cchieral from sales 25 per cent 
?^iJL ncreas ?^iSJS! 3 ' 728 -!? current year, can be expected, the Davis for the wirch 31, 1978 year at -^? m »,.f^ flecliDg ? f “L‘ 


£563^159. Comparisons are chairman 
adjusted. Meeting 

Earnings per share are given as 1L30 am. 
11.76p (8.7p) and as forecast, a 
final dividend of L398p subject to 
the expiry of dividend controls Ta mr 
doubles the total payout from (»/| 
l_239p to 2J18p neL The directors JLTXe 
propose to double the authorised 
capital to £2m and a scrip issue of Till* 
lI-for-10 is also proposed. I- Ml I 

The directors report the sale of 
a freehold property on June 23, 

1978. for £450.000. This property T, j 
which is surplus to the group's ‘ 


are chairman says. 

Meeting, Leicester, July 20 at 


for toe n£* “ iff ^ 

im £252m to a record £3.7m. ■ usefuI improvement - m win help strengthen toe capital 


tal dividend in the current year by j Henry Schroder Wags, previous year at £25£7m. The A 27 per cent rise in pre-tax profits 
r 148 per cent . - . Brokers are Rowe and Pitman,, major items were additional is no mean achievement for a con- 

Mr David Rhead. the company's Hurst-Brown and Smith Keen cylinders, tanks and vehicles to Wniction related ^ ympany, like 


M. James 

u3or-10°is^s^prorw^ 15806 ° E tlllTlS 111 weVT 'extraordina^^ losses"** of bustion englneertog . " Tfre direcj finan^*l V *year^ LQ acqutaS two apparent f rom the balance^pot ^ comment. ‘ buo^m. 1 The'oro^^fOTmanra 

1X1 £0.97 m. tors state that all divisions and vehicle distribution outlets, —at March this year total bofcrow- T iiTtte TTK h« morB than oSr**f 

a freehaJtT propSy on June^ A/iteA AAA Earnings per share are shown companies in toe group did welL Newport (Gwent) Motor Company lagajjmounled toahn^rffto^ ttiree mrior . ^ C. « fall ^of ^06.000^ to overseas 

io4 fl!. aKn 7 tS!c 4- 4 / 1| I II If I at 22 _3p (lL7p) and the second with lubncation systems and and The Halshaw Group, and HKB against shareholders’ funds at Gas all contributed to the strong moats to around £400000 csiued 

whfch f is sS?us‘ t ™e P SoS?s ' ^el/UU interim dividend of 2.335171p garage 1 equipment the outsttnd- Steels (Sheffield) fSrffi aggregate EOffl gearing, ho wever. , unprovement in its reaulta. The in wria5n?rom- 

rea uiremenS^conjDrisS a facto P rl „ ^ 7 takes the total from 2.993S32p mg performers. The current year cost «rf £83m in cash and 839B7I does not maduly worry toe gnmp npn-consoUdatod Sol*te «*»“ p&ted orders Sth nw^vrork 

Mnin^n? PRE-TAX profits for 1977 of to 3305171 p If the rate of ACT has begun satia&ctorily and ordinary shares. which sees strong growth pros-, dates and allied companies over- Even so the marker lx InoTHn* for 

Surrey 5 C TlmDr(K»ecto a will^urtoer S aarlc * v J ?“S_ Indastries > is reduced P the dividend will be another year of growth is in addition capital expenditure gects over toenext few y»a. fame roryfi at dem and, particn- from thewoup tor to? toll 

steSSthen to^firouo? SSSdJ fonD ^J„Y° rk amounted adjusted and if dividend restraint expected. last year amounted to £58m. most Setunroa capital employed ^ *5* J ® wr year, which puttthe shares at 

SfbabnSShSt theyS? * is discontinued a third interim not gg gg of which went towards the grant a mare to pc^centlmt contributi on w asboostad -»r • * fig* onanrtetetive SSF5 68 

deficit of £155,000 for the exceeding 0 G94829n will be paid. J** continued development of the the target for mdusfrid interests ^.beneficial currency movement and .i^T a vtaid^of^ ' At wemit 

is shown at 633p (505p) per lOp P rev *ous nine monthtL Turnover The tax charge reflects ED 19, Trading profit . ate zjsi wrap's trading estates . at ' fa per, cent LCPjasfiaw^gft-; n daw-l»ck'^ dfridends toDow- tevels the shares acre attractive. 

was better at. £5 .23m against and directors consider first year imereM ... ... „... ¥U 173 w Pensnett. Stourbridge . and mitted. almost- £ l lh n . for invest- tog .the <usiot of Belgian restrio* 

Th* ;irmm manufactures safetv n ^ Sra - __ tax allowances are areilable for ™ U5*™ *“ *25 fS wnienhaD, the construction of five ment, much of it to the tradtog -tions but JT these are netted out 

awtomf fire “deniSromSS ^7 “f* the group’s vehicle rental fleet 7"~ J® jg new Homecentre stores and toe «wtat» where profifett^ tone ta • RAIVKTRQ IWV 

control products and specialised mootomonuu At balance date fixed assets were BmordiMry credto — h m i» completion of a second » to comri^tte-Tbe main TO mb-. oANKtKS. UW. 

engineering equipment^ two £18.69m (£14^6m) and net current *£0 >u, 2? te tTO im Min for Stourbridge Brick confident howeve r, ; th at rental >gtouuy.- Jo? the first rFDITC ~ 

u&m b f Tnrnover 5,235 Lisa aqvtc etnnd at w. «im ffijjSmi Dtodemte sk !S7 Company. income will double over five years, time to Its history did not suffer 1 RUSjt 

operating profit -2is 8618 1 '• m reserves — . t» u» This year the company Is No profits forecast has been any gas shortages during its peak 

1 TTfll 55 *5 o AAmmont _ . budgeting for caprtal spendfag of made for toe current yak* and the seUtog period. As a result sales Yesterday’s headii* on too 

Bardon Hill tSSSwS^ip"”^ S ~ • comment • comment Which wm be ^ used 0 to promised dividend hikels hardly revenue was up* 22 per cent, sales Bankers Investment Trust story 

- . » . m. Jama Houinss — so Godfrey Davis has marked time TeealemK.’s foil ™»r ‘ »«- continue developments on the generous. The company is none- volume by 50 per cent and profits was inadvertently abbreviated to 

nparc tnrPP3^l a neror da rgei « m in the second half but this was -ZjSIlTZ. oi^ypr^Z* three Homecentres (£DJ25m) and toeless confident of a fcood year, were substantially better despite Bankers TYust, whkh is the tide 

u/iLL<fa3i AdjjnatmijKt • » — generally expected; there were a per n ^TT ir °“_Sf^ farther expand vehicle distrfira- following a disastrous, per- w* tocreaw to the valve conver- of a completely separate UA 

The Bardon ffifl Group, whose S** 1 *' ^ fewer disposals of ex-hire cars tom facilities (H>.75m). No more formance by toe. engineering aton cost write-offs. Century banking group. 

shares are traded on the over-the- n ei pnsu iso nw while the comparable period was 22:™® „L a ^ , ??- a JS2S? acquisitions are planned at the division last time With more — ’ . 1 

counter market achieved pre-tax Extraord. debits 34 n» exceptionally buoyant. Overall 3 m!?L S *o? moment but now : that than £350^)00 -lost by a Leyland 1 

profits of £L2m into* year ended ?S2 * M ? tbe star performer has been toe 5^"*®* iSSJL vehicle distribution has been strike at Speke aim toq con- _ . 

March 31, 1978, compared with 5^5* ?? — - 1 S * rental, leasing and contract lore sales complemented by four Ford main sequent difficulties at Coventry, J " ~ " ,,1_ . 1 


up from £2J2m to a record £3.7m. - wm neip snrengtnen tne capital . — 1 

- Turnover rose from £50.0 Ira to ma f sl ^‘ „ .. ■ • h^ and the proceeds, together • comment - 

£753lm and after exceptional At the attributable level profits with two additional secured • ^ Tu rnover at another sui 

items of £168 000 (£83 000) and emerge ahead at £LSm against medium-term loans of £Sm each. As at toe. time of the last rtohts'Centmy Fewer and Uj 

tax of £0 86m ?£l 06ml net nrofit £l-43m, giving earnings per share will be used to fund recent issue two years ago L.CP. is both creased l* per cent to £*.- 

was £2r67m (£L38m) up from 143p to 18^p. acquisitions and capital spending helping to pay for acquisitions profit before tax was 

After minority losses of £34,000 The group has interests to fluid undertaken both last year and in and strengthening its ehpMiMMib tf0.63m) after charging 

(£36,000) attributable profit was transfer and filtration, lubrication the current year. • for. the future. Certainly the need (£0-66m> for depredation. 

£2.7m (£0.44m). Last year there systems, garage equipment; com- Towards the end of the last t0 .™areh°ldMS-- fe. • 


meet peak whiter requirements SGB, the largest scaffolding 
: - and continuing growth in bust- supplier and contractor in the 
ness. UK. But where SGB is s coring 

• Turnover - at" another ephridiarv P’ rer harder pressed competitors 
ts Century Power and Light, £ te .that it has been consistently 
U, creased I* per cent to £2.4m The faiwT 

ag profit before tax was JELlTm WMher concents have failed. 

£ (£0.«m) after cbarefuK Wte y°T7. 8r ..^ e 

t®*” fw d ' Bred>aoa - KtM 5f?S 

^ hiriiment activity which Is fairly 


comment 


buoyant. The strong performance 
In the UK has more than offset 


Surrey The proceeds vrill further inaosine^ is reduced the dividend wffi be anomer year « growc 

sSSSthen th^group’s aSSd£ ? d i« sted ? di ?^ n - d r ^ traint “P® rted - „ 

strong balance-sheet, they say. SUS 7ft 5P’ f^thS w d^ntinuedathird interim not gg 

Net asset value at toe yearnrad 2n* £ SSS exceedmg 0.694829p mil be paid. ^ mrnovo- azjSSs 

is shown at 633p (505p) per lOp P ,™ vl0 25J line The tax charge reflects ED 19, Trading profit . xsn 

share ri a 5oJ >etter at 5523111 ■ aeainst and directors consider first year yaw - ■*— iw 

The group manufactures safety 1*7 1K * allowances «e available for ™“£ e ‘ orB 

systems, fire and environmental 12 9 the group s vehicle rental fleet n« profit tws 

control products and specialised month* momns At balance date fixed assets were Esraardinur credit* — n 

engineerinK equipment _ no wo £18.69m (£L4^6m) and net current £2$“t*We ; 1J« 

SSa» 5 «' ™ S S ^ **»et. .food at asm ICUOm). J« 

Bardon Hill Tra nw nnd Crmm • = i J • comment • comment 


lsre mi 

£000 ION 
32.988 29432 


Turnover 

Operating profit 

-n TT i n Shares uaocs. profit 

Bardon Hill * — 

1 , n . M- Jama HaUUass 

beats forecast 

The Bardon Hill Group, whose T^Satton 10 ** *** 

shares are traded on the over-the- Net profit 

counter market achieved pre-tax EcraonL debits 

profits of £L2m in the year ended Ayatobte profit 

March 31, 1978, compared with - 

last July's forecast of not less tin r*«p SoTtt 

than £950,000 and 1977,000 in praHaT 


BANKERS INV. 
TRUST 

Yesterdays heading 1 


Reinlned nrofit 37 mi *v««uu. icawue mu vuuumi uuc _r . .._j.i_. __-I — 7 I-il wuipicuicmcu ujr juui ruta mam se^uan uhiiwu uw Ok vu*cuuj, 

ie f s “Loss, tm rawest 'rf" pre-acqnwtton division where profits are 80 per . to . ^ dealerships, Mr. Rhead says the the situation can only get better. 

£977,000 ta profit*. cent higher. The sharp increase SL!?® 1 “1 A ^ a - ^ e group will certainly be on toe look At 90p the shares 'stand on an 


At halfway, when reporting in new car prices coupled with Hatched the group's sates growth, out for a fifth. 
; — 7 The m crease in toe number of 


ex-rights yield of 9.6 per cent 


GEI 

INTERNATIONAL 

LIMITED 


Government vehicle testing 

STSSSS David Smith returning 
bST-siXS £1.6m tahdders 

have been turning to the com- David SL Smith (HoSMugs), toe The scheme, which is thus also 
panya lubrication systems to photo-litho printers and- carton aimed at fending off' such bids, 
reduce servicing expenses: The manufacturers, has proposed a would involve the issue of one 
rtmres wflj no doubt attract a reconstruction scheme, which wifi share In a new holding company 
great, deal of attention following result to shareholders receiving and a cash payment of 30p for 
the company's announcement that a cash distribution of 30p that each existing David Smith’s share, 
it intends to raise the annual wEU be subject to, at toe most. The company also proposed 
dividend payment by 70 per cent 30 per cent capital gains tax. yesfert&y a - second . interim 
A .t 137p, this would increase toe Th e scheme, which is stouter dividend of L4l2p which raised 
yield from AO per cent to 65 per that proposed about a month the total tor toe year ended April 
cent Meanwhile, toe p/e staSS 

at 72 ford-based greetings card, com- propp®ds ^SJlhw vnth toe 

. pany, will involve the distribution 

■wy j | of some £L6m to shareholders. ' t0 re * eased next 

JN ortherii: jsnsRBtt wu 

-rn -rn _ yesterday to 97p to the market of 2 a ^? 

rinl LH» Sharpe, whiri. annoraced Smitote^tetoed. «pftal cf - tun. 



Standard Chartered 

BankLimited 


# 


TTia Directors announce the results of Standard Chartered 
Bank. Limited for the year ended 3 1st March, 1978 .as follows: 

< : 1S*>8 1977 

• £000 £000 £000 £000 
Trading Profit ' 

Bhnk and Subsidiaries . 107,179 96,759 

. Share of Associated 

"Companies 1W67 13.182. 

Profit, before -nutation and 


Northern 

Goldsmiths 

progress 


v-ViteJUUUIO *™r« 

^ •' tion built up to recent years, directors Mr., j. ^Itfmy^an d JMr 

lirnOTCSK ™« has resulted in an accumula- W-H- hgM to4 remaining 

r A V tlon of cash by the company which 8 Jl ..,trnV ■MriiimTiii.. 

_ . . • • if Anril V) 1977 exceeded £1 6m ' Another subetannal sharenolqer 

AN INCREASE from £315^99 to fevUl0 ImP^nai -Groan ■ Pension 

£384^42 in pre-tax profits is 641 ^ c ™ tornet Ponds whi<* have to: interest of 

JiT N ? rfh ^ 1 Go3d ' Smith said yesterday' that « ** T __ 

S£f trader normal market conditions. - ■ See Lex, 

^*£*1 a %. 197 ^ nJ^?’ the board, would have significantly 
over rose slightly from £3.07to to increased the dividend paymratV VoarlmCTC - - - 

, But due to government restrio- 1 6 J.|! IllltiS 
The final dividend is stepped up. tions on dividends, this, was not . _ , 

from L00207p to i2369p - net practicaL - - gf : 

making a total of 2.0869p against As a result, toe Board believes .4*1 *v8 /D. , : 1 

L85207p. Earnings per 35p share that the company’s shares are eonnon rate on the local 

are stated at 6.19?, (5.41p). ’.materially . .under-valued which. n ,™ H « a P“ ^“L™, “g"’ 


Smith, i‘. chairman. 


Turnover 
Pre-tax Profit 
Earnings per Share 
Total net Dividend 


1978 

£50.48m 

£5.55m 

10.6p 

4.1 52p 


March 


1977 
£40m 
£4.1 4m 
7.8p 
3.715p 


up 27% 
up 34% 
up 36% 


Chairman, Mr. Thomas Kenny, FCA reports : 

Record sales and profits for eighth successive year. 

* Over five-year period sales have increased by 1 34% and profits by 234%. 

Direct exports up during the year by 30% to £5.8m. 

A further £3m invested in new buildings and machinery. 

Strong financial position, with net cash and government securities £0.7m up 
at £4.7m. 

Net current assets increased by £1 .4m to £1 2.4m. 


The coupon rate ah the local 


G «u>ku ai o.i»p vs-^PJ. ’.maienauy unuer-vmuw* wnxen. rfh orItv one vear bonds has 

t ^U , J2f t /l?L t Ji5.7® ar emerges Ste?v^bto& mith TOlxiera ^ lc ** JSto SSm 9* parent to 104 per 


at £172,563 (£148,926). 


cent This week’s bonds are issued 
at par tod are dated July 1979. 
The -issues are: Cygnor Dosbarth 


FNFC-up to £8m midways 

but outlook uncertain ISsss&lst 

HAVING RETURNED to profit- port group amounting to £14.61m Western Isles Island^ Conncfl 
ability In toe second half of -tod sufficient remittances have ASEPJSyTSjJS® n?,S?S 

1976-77 (with a nre-eax balance already been made. to cover this (£|m>, , ClQr of Glasgow District 
Of Slim Rr«rt iJterttwS wmhk amoimL This brings up to date Council (£lim), London Borough 

¥g £ SsSEs ses ws 

3 °biStog toe tSS?tew Stofthe “I® 11 interest on aU tens Rhymney VafieyDistrict Council 
ero^lfnc amounts to £26.09m but no Is ttustag £Jm of 11? per cent 

KStai M poS!ton \r,Ta^S^- ^ ^ im “ 

f $®* * l *“ t i he progress, made r^g ^ the profit for the -There are ’ two variable rate 

7 six months te .to reduce the net bonds dated June 1983. C3ty 

“^rtency for shareholders or deficiency for sharelmlders to of Aberdeen District Council has 
£67.7m and the substantial, amount £ fl7 _7 m after deducting this issued £}m at par and the London 
of the groups borrowings. from a total of £9LSm in respect Borough- of RichmoinHipdn- 

Since the end of toe half year ^ deferred and subordinated Thames is raising £?m. 
interest rates bave risen and this jgans the solvency residue now 

bears heavily on tjbe group, they amounts to £23 .Biil •. ¥7 ACT 1 a v/^T TA 

stress. Interest levels also affect Cash generated during the half-- LAfll AlitTLIA 
prices of properties and eonse- mar and reductions in liabilities'. WATT7D flir 
quently a reliable estimate of were both ahead of expectations “ A * 

results in the second half is not. and the group continued to East Anglia .Water Company 
possible but present indications experience ■■•■the - lower, interest announces that .underwriting. has, 
are that a profit should be earned, rates and improvement in the been completed for an offer 
The long term future, however, property, market which . were of - £ 2m 7 per cent Redeemable 
remains uncertain. - evident in the tetter half of. 1977. Preference Slock, 1983. - 

The first-half profit is after These were important factors con- . _ 

charging interest on the income.' tributtag .to the improved resate, DTTCTi fD . . 
deferred and subordinated loans the directors point out.- nratftin 

amounting to £6.1 8m. The group.. The profit .tor the. half-year Hestalr’s rights issue of 3.6m 
profit te increased by tax recover- includes £4JJrn v m. toe . consumer shares has been - taken up as - to 
able of £360.000. •' credit division which continues to ' 90.78 per cent The balance of 

Under the terms of the reorganl- perform well jThis profit com- 330,811 new ordinary shares has 
Ration . scheme approved on pares with: £8m -ta- toe year to been sold and the excess of LL55p 
December, 1973, and consequent October SL 1977. in which period over the subscription price wifi 
upon these results, interest now a loss of. £4J87m' was shown for be distributed among . original 
qualifies for payment -to the sup- the groyp- ‘ .allottees. 


- extraordinary items 

726,146 

109,941 

Taxation (See Note) 

63JI7 

5S36S 

Profit after Taxation 

62^29 . 

54376 

-Mftority Interests 

W19 

6375 

- _ - - . ’ 

54JJ10 . 

48301 

. Extraordinary items 

Profit attributable to members; 

1441 

899 

~ojF t|ie Bank,. 

52^69 

47,402 

- Dividends 

13,483 

11,974 

... Profit retained 

39386 

35,428 


77 


Earnings per share 

NOTE 

.78 Jp . 

693 p 


7978 

1977 

.'Taxation, comprises:- ........ 

United-Kingdom Corporation Tax 

£000 

£000 

less double taxation relief 

213*67 

21.136 

Overseas Taxation- . 

41350 

34329 

• * ' .' /- ; •• 

- <3317 

55365 

DIVIDEND 


• 1 


Principal members of the Group 
Steel Stampings Commercialvehidewheels 
and heavy pressings 
Drury Pressure vessels 


Drury 

Engineering 
Barlow & 
Chidfaw 
Musgrovefr 
Green 

Welders N.V. 
Midland Bright 
Drawn Steel 
A. E. Godrich 
&Son 
Hemmings 
M.C.L. Ei- 
Repetition 
The Castle 
Engineering Co 
(Nottingham) 


Gear cutting 

Tanks and cab bodies 

Specialised welding 
Bright bar 

Bright bar 
and wire 

Stainless steel wire 
Automatic turned parts 

Automatic turned parts 


Allspeeds 

Webtool 

Hydraulics 

James Raistrick 

8-Sons 

Andrew 

Denholm 

Machines 

Collette N.V. 

Auto 

Wrappers 

(Norwich) 

Ayers &- 

Grimshaw 

Purdy 

MachineryCo 

Drum 

Closures 


Variable speed drives 

Industrial hydraulic 
jacks 

Iron castings 

Bakery ovens 

Mixing equipmentand 
gear cutter sharpening 
machines 
Wrapping and 
packaging machines 

Parcelling machinery 

Labelling and filling 
machines 

□rum closing rings 


Copies of the report and accounts 
are available from the Secretary 


GEI International Ltd* West Street, 
Dunstable, Bedfordshire, LUG IT A. 


WATER £ 2 M, 

East Anglia .Water Company 


HESTAIR 

Hestalr’s rights . issue , of 3.6m 


-■ The Directors will recommend to shareholders at the Annual 
'' General Meeting to be held on the lOrh August, 1976. the payment 
■of a final dividend. Inclusive of related tax credit, of 17.5767 pence 

• per share, the. maxi mum permissible under Counter Inflation 
Regulations. At the current rate of Advance Corporation Tax 

* the amount payable to shareholders would be 11.6006 pence per 
share and this would be paid on .lSch August. 1978. to shareholders 
on the Register at the dose. of business on 2l'st July, 1978, If 

: the rate of- Advance Corporation Tax for 1978/79 is reduced a 
further . amount In respect of. such tax adjustment mil be oald 
: oh 26th January. 1979, to shareholders on the Register at toe 
dose of business bn 22nd December. 1978. 

L. R. BISHOP t 
Secretary/ 


! The^ 

K^eafea^redFeoMcgiCi nTi 



TStepbciie£Br 6 g & 5806 







‘N 



.^uancial Times Wednesday June 28 £W$¥ 

David Freud analyses the changing patterns in British employment 

A new era for women 



.27 


INDUSTRY v. SERVICES 

Workers in GJk employment 
fTOOs) 


(Mid-Year) 


All industries 
and services 


Manufacturing 


Non-manufacturing 


ANY EXAMINATION of the 
.UK’s current unemployment 
proWen^r must start from the 
'arinje writer’s favourite maxim: 
.“Cherchez-Jsi femme.” For one 
■'Of. the - principal causes of the 
„jefcqrt ^.; post-war levels of 
^mompliJyment is. a profound 
.soc^djaxtge — more and more 
Women are holding 
looking 'for them. 

comnkmJy cited factors, 
S«H3r-. as^ the baby-boom genera- 
^fdn^- teaching- working age or 
.the;, decline in the country's 
.manuif actiirLng : base, have 
,-pl ayed -sojnejjart. But it is likely 
the. economy could have 
- abso rbed: ■ most of. the sehool- 
rJmfwerSj^if . they had not had to 
compete wiUt the women. 

'fii ^ite of the recession since 
*3.974, -.the number of people 
/employed bias held up remiark- 
.abiy well. In round numbers 
-apOjOOO jobs '.have been lost, 
^accounting. for oniy a fifth of 
.the; increase in people out of 
ijwoifc. The- remaining four-fifths 
u»f those out of work are net 
-Xtpw. additions to the country's 
^ork±a£popblatioa ( 
l^ Whore .'have these people 
The labour market 
vifroii'a state of constant -move- 
iqenl, with^ 8m to 9m job 
jchmjges.ayear. In overall terms, 
^kte^ever t .^ie number of people 
toe Mrork&xnce (which 
• jttcte des. the -unemployed) cur- 
exceeds- - the number 
^dtmgfrom it by about 170,000 
' -/• ' - 

*'■ Over, the last five years the 
'number - retiring . has been 
TsJigbtl)^ l&rger than the number 
^df; ; ":\Sehoo I : leaVe rs joining the 
^arket^Howeve r, over the same 
'^rmdanadditional.lm married 
women have become available 
for work, an increase of 200,000 
a yeat- 

- Because married: women ere 
. begibly employable — often 
because of Shear previous work 


experience — they - have had 
hule trouble in getting jobs, 
mainly at the expense of girls 
and women in their 20$ Unem- 
ployment among ' women 
between 20 awt 29 *s' now the 
highest of any age sector in 
the pofariation, ait more dlbaus 36 
percent. 

23he problem of i fage young 
workers, “ dosptoced: ”fiy mar- 
ried women, would have been 
much worse but for the raising 
Of the srihoaUeavaag age to 16 
in 1972-73. This is estimated lo 
have reduced the workans popu- 
lation by about 0.5m. 

- The raising of itfee sdbmri- 
leaving age helped to mask the 
fact that the UK’s unemploy- 
ment problem is not to much a 
result of the current recession 
btt part of a lODoger-itenn 
deoldiie which seeans io have 
begun about 10 years algo. 

Up to that tune the labour 
market seemed capable of ex- 
panding to use Uhe giwdng 
workforce. Indeed large-scale 
bnmigrabon was necessary to 
satisfy demand. Nearly 3m 
extra jo fas were created in 
Britain in the IS yeans from 
1948 and unemplloymert aver- 
aged only 300,000 riuougbout 
the period. 

In the 11 years from 1966 the 
workforce increased by only 
650,000, and unemployment in- 
creased by more than 1m. Gov- 
ernment job creation ^schemes 
are estimated to be- currently 
keeping mare than 200,000 off 
the register. 

What was the cause of the 
tumround? On the surface it 
was a decline in employment in 
manufacturing in i960, ba the 18 
years from. 1948 an extra 1.5m 
jobs were created in manufac- 
turing, while in the 11 years 
since 1966 1.2m jobs were lost in 
this sector. . . 

However, several sectors of 
manufacturing industry were 


declining even in the earlier 
period, notably shipbuilding and 
textiles. It therefore seems 
likely that a long-term 
■•natural" decline, was involved 
in those Industries, similar to 
that which has cut the number 
of workers needed in agricul- 
ture over the last century. 

Employment In vehicle manu- 
facture was also showing little 
growth by the 1960s. The real 
change in trend is seen in metals 
and engineering. These seemed 
extremely healthy industries for 
employment in the earlier 
period, offering nearly lm extra 
jobs. But in the 11 years after 


ployed in manufacturing than 
the U.K. 

The proportion of the U.K. 
workforce in manufacturing was 
30.9 per cent, while the 
equivalent figure for the U.S. 
was 22.1 per cent, and for Japan 
25.8 per cent 

Nor was the UK alone in 
experiencing declining employ- 
ment in the manufacturing sec- 
tor over the previous 10 years. 
The only OECD-member coun- 
tries whose workers in manu- 
facturing increased between 
1965 and 1975 were Italy and 
France. 

It is not only through direct 


INTERNATIONAL COMPARISONS 

Per cent employed in manufacturing (1945-75) 



1965 

1975 

United Kingdom 

2SjQ 

30.9 

Belgium 

3S3 

30.1 

Denmark 

2BJ. 

22.7 

France 

27.7 

27.9 

Germany 

383 

353 

Ireland 

T8.6 

20.4 

Italy 

28.9 

32.6 

Netherlands 

283 

2431 

US. 

26.1 

22.1 

Japan 

24.3 

25.8 

Sweden 

32.4 

28.0 


Sourer: OECD Labour Force StoURlci 


1966 the number of jobs in 
lhose industries /ell by nearly 
500,000 at a rate almost as fast 
as that or the previous rise. 

It is impossible, in practice, 
to isolate whether the fall in 
employment is due to automa- 
tion, increased productivity or 
industrial decline. However, 
international comparison sug- 
gests it would be quite wrong 
to lay the blame for the increas- 
ing unemployment at the door 
of manufacturing. 

Figures compiled by the 
Organisation for Economic Co- 
operation and Development 
show that in 1975 only Germany 
and Italy had a larger propor- 
tion of their workforce em- 


competition that women have 
been able to increase their 
stake in the economy. They 
have also benefited from a 
change in the type of job on 
offer. 

While employment in manu- 
facturing — traditionally a male 
stronghold — has been declining, 
there has been rapid and steady 
growth in employment in 
service industries. And women 
have been well suited to take 
on these new jobs. 

Taken as a whole, service 
industries in Great Britain have 
offered an additional 3.3m jobs 
since 1948, and the rate of 
increase doubled between 1966 
and 1977. 


The service industry sector 
in which there has been most 
growth is the one in which 
women have traditionally found 
it easy to obtain jobs. This is 

professional and scientific " 
services, which include educa- 
tion and health. Employment 
has grown nearly 300 per cent 
in this area since 1948, by 2.1m 
jobs. 

The public sector has led the 
way an .providing these new 
jobs, and the process accele- 
rated in l!he last business cycle, 
from 1971 to 1976. In this 
period the numbers employed 
by centra! government and local 
au thorities increased by 772,000. 
More than half of these extra 
jobs were in health and social 
services, while most of the 
remainder were in education. 

One reason the public sector 
has been to the fore is because 
it -is one of the few sectors In 
which employment is not in- 
directly rial lo the ailing manu- 
facturing part of the economy. 
It is estimated that of the 15m 
or so jobs in non-manufacturing 
about half depend on 
manufacturing. 

The effect of these changes 
has been to boost the propor- 
tion of married women who 
have got jobs — or want them 
— from 42-3 per cent in 1971 
to a current figure of just over 
50 per cent. This as an accelera- 
tion of a trend that began at 
rite beginning of the 1930s, 
when only 10 per cent of 
married women had jobs. 

The increase in the number 
of working married women — 
who form more than two-thirds 
of *he female workforce— means 
that half of ail women over the 
age of 16 bold or are looking 
tor jobs. This compares with 
an 84 ,per cent figure for men. 

Two other factors — apart 
from the increase -in opportuni- 
ties for work in the pubHc 


11 years j 

1948 

19,994 1 

+1S71 

7,930 \ 

+998 

12jD64 j 

I +573 

1959 

21.565 J 

(+7.9%) 

8,928) 

( + 12*%) 

(+4.7%) 

12AJ7' 


7 yean 

,1959* 

20,983 | 

+L804 

7,9021 

+506 

1 3,081 1 

+1,298 

ll966 

22,787 1 

(+8.6%) 

8,408' 

(+M%) 

14S79J 

(+9.9%) 


Byears 

r 1964 

22,787 | 

! -490 

8.408% 

—703 

14,37*1 

+213 

il974 

22297 i 

1 1-23%) 

7,705) 

(-*-4%) 

14S92J 

(+13%) 


3 years [ 1977 

22,172 ] 

1 " 12S 

7.205} 

—500 

(-65%) 

14.9S7] 

+375 

} (+2.6%) 

1 

1 

1 

f (-0.6%) 

J 

i 



•Statistics on new basis 


Source: Deportment of Employment 


sector — are thought to have 
contributed to the sharp rise in 
women’s activity rates in the 
current decade. 

These were the very big drop 
in the birth rale, by about a 
quarter between 1971 and 1975, 
leaving a higher proportion of 
women free to work. The 
second factor was legislation or 
equal pay and opportunities, 
wihich has encouraged more 
women to seek work. 

Official forecasts all assume 
that the increase in the 
economic activity of married 
women will continue, although 
it is thought unlikely to reach 
the 84 per cent rate of men. 
This growth is expected to be 
the main factor disturbing the 
labour market in the next few 
years. 

If there were no change in 
married women's activity rates 
from last year's level the labour 
force would increase by only 

431.000 between 1977 and 1981. 
an average of 107.000 a year, 
according to the Department of 
Employment. But the likely in- 
crease in activity rates for mar- 
ried women which is part of 
the DE's assumptions brings 
that figure up to 681,000, or 

170.000 a year. 

In fact, the additional nmfr 
bers seeking work are likely to 


be even bigger than this, if past 
experience provides a reliable 
clue to the future. In the past 
tbe official forecasts have con- 
sistently under-estimated the 
□umber of married women join- 
ing the labour force. 

The second major factor 
widely expected to affect the 
labour market in the UK is 
technology, and more specific- 
ally the silicon chip, with all 
the potential it has for large- 
scale use of computers and 
automation and tbe consequent 
loss of jobs. 

Mr. John Cassels, director of 
the Manpower Services Commis- 
sion. believes that while the 
chip will cause large changes 
in the use of labour, those 
changes will occur much more 
gradually than many people 
fear. Nor will tbe impact 
necessarily be to reduce the 
total number of jobs. 

“The history of the indus- 
trial revolution is full of new 
machines which dispensed with 
labour and yet did not cause 
a loss of jobs. The chip may 
be used to improve the quality 
of products or sendees, without 
changing the numbers em- 
ployed, or it may be used to 
produce goods more cheaply, 
freeing spending power for 
other employment - creating 
items,” he said. 


However, the chip will un- 
doubtedly reinforce the trend 
towards fewer manufacturing 
jobs and more work in the 
service industries. Furthermore, 
the new jobs will require a 
better educated workforce. 

This requirement seems to 
be in line with future supply. 
A recent article in Employment 
Gazette, the official magazine of 
the DE. showed that tbe number 
of people in the economy with 
university degrees or their 
equivalent is expected to in- 
crease from the current Z.2m 
to 2m by 1986. These will 
represent 9 per cent of the 
total workforce compared with 
4.S per cent at present. 

The article goes on to esti- 
mate that the growth in the 
number of highly - qualified 
women will be particularly 
rapid, increasing from 267,000 
in 1971 to 725,000 in 1986. 

So, it looks as if in the 
next decade women, particularly 
married women, will become 
increasingly important in the 
workforce. And because they 
were late entrants to the job 
market they will tend to par- 
ticipate in the healthier, grow- 
ing parts of the economy. This 
makes it all the more likely 
that the problems which school- 
leavers face in obtaining jobs 
are going to get worse. 


Letters to the Editor 


Investment for 
^development 

From Senator Jacob Javits 


poorest sector of developing total employment is down by jeuts — they included, last season 
country populations. about 25 per cent. Courbet, Gagaku. radio features, 

The dream of Adela has not Similarly, London's popula- the Polish musical avant-garde 
faded, instead tbe need that it lion may be declining by 100,000 and Christopher Bruce the 
sought to address has grown a year, but Glasgow’s at almost choreographer. Arena took TV 
enormously in the economic tur- twice that percentage rate — 21 drama seriously among the many 
. ipoij of the 1970s. making it all per cent p.a. as against 1.3 per arts tackled in its last run. Bryan 

, ‘ 5ir * — Adela has come under m 0re imperative .that we use cent for London. And so I could Magee takes philosophy seriously 

. fire recently. This multinational such mechanisms in the effort to go on. Small wonder we up The Spirit of the Age took archi 
economic development corpora- narrow the gap between the here take a jaundiced view of lecture seriously. If there is i 
tion 1 conceived for Latin developed and developing coun- County Hall’s special pleading! danger, it is that the public may 
‘ America over a decade ago has tries that threatens the equitl- Of course London has prob- he finding it increasingly difficult 
been the subject of some surpris- biiara of the world economic lent s— major problems by the to watch TV seriously. But that’s 
• ‘ * • “ standards of the prosperous another story. 

South East, but to suggest that And whatever Chris may think 
London’s problems are as serious of Derek Bailey’s treatment of 
as those of Strathclyde or Mayerling (and the complete 
Merseyside or the other “ tradi- ballet lasts well over two hours) 
tionat blkckspots “ is at best to he must not be allowed to get 
confuse si?f with significance and away with a statement like “ TV 

inevitably detracts from any 
performance when it simply 
relays it from the theatre. 


ing Press criticism. The charge system and societies. 
ils-thaL at.the ripe old age- of 33, J. K. Javits, 

Adela — Atlantic Community United States Senate.- 
Development Group for Latin Washington DC 2 0510. 
America-toas become jaded, has 
- Jost-sight qf-its- original jmrpose. 


Unemployment 

MX* ttat apPMred at in Hammersmith “ 

The foundere* saw^im ^conflict F Tom Director of LO Cadojwn Street. Glasgow. 

Development Planning. London 


between Adela's objective in 
/making a real contribution to Borough of Hammersmith 
economic development on the Qi , 
one band and that of obtaining interest the 

a reasonable return on its in- a ri'? Ie ‘Tinkering with problems 
ivestment on the other. 


Windmill 
power 


BBC-2's Dance Month included 
what was by general consent a 
superb relay of A Month in the 
Country from Covcnt Garden 
The Balanchine films Chris 
Dunkley dislikes so much were 
second repeats and late night 
screenings: the main thrust of 


of London's industrial decay 

„ , , which appeared June 15. I _ .. 

Expertise would come from its w0ll id Ufce, however, to draw From the CounseUor (Scientific ) ? ur Dance Month was to per- 

; stockholders, which included y0 ur . attention to the table Canadian High Commission form antes taped or transmitted 

manyof the worlds most success- entitled “Inner London’s worst sir— I was disappointed lo !L ve f L° m , “iL 8 J 

ful corporations. Exxon. Ford bit •• which appears in the note that L an o^erSSe we 1- S re ? 

Motor. First National City Bank teX L ?^ar?hed and fatereSna f an i? h Ballet which was hardlj 

'■and IBM were among the first I .think that the figures shown, a^Srhp two nitfalS of head . in e for middle ground 
investors, fiooa to be followed by although no date is given, refer windmill power June 16 — Mr. p°" s,s, ?j r ?3 t^ ree 

Fjaf. . fta Dresdner— 50 AprU 1978 and are GLC esti, SirtflUSck did a” meTtfoa un £ am,1, “ r s *° rt balle ^. . 

shareholders from countries mated rates for employment the large vertical axi 1 ! wind Even the best of critics have 

in all. With paid-in capital of office areas. It appears that the generator built by the National shorl partial memories, 1 
S16m, Adela was incorporated Hammersmith employment office Research Council of Canada. fear - 
in Luxembourg in 1964. Growth area, which according to GLC which has been operating Humphrey Burton. 

•-and profits rose from the first estimates- had a m:Je unemploy- successfully for about a year BBC-TV, 

,-year onward and with one ex- nient rate of 7.6 per cent in n0 w in the Magdalen Islands in Kensington House, 
j-ception. every year since has April, has been omitted from this the Gulf of St. Lawrence. This Richmond Way. W14. 

'ended in the black. Today xt is table. ’ windmill, believed to be the ’ 

a. corporation with close in addition, -more detailed largest of its kind in the world. 

'to S0.5bn in assets with analysis of unemployment figures has been feeding some 200 kilo- A thlllDninti 
228 shareholders from 2S coun- for those parts of the employ- watts of electrical power Into the tliuif ifJlilg 

- tries and investments throughout ment office areas which are in island grid, which is normally . j 

Latin America. this borough, suggest that tunera- supplied by diesel generators. SjrCJll lOSS 

Of course no one Imagined in payment in north Hammersmith Its operation to date is estimated ® 

1964 that ’ the international >s in fact higher than 10 per cent to have saved about 40.000 From, the Secretary-General, 


economic community would be William A. McKee 
r so pervasively affected by the Foym ««*"■ 

: petroleum exporting nations 10 ntnp hireer, we. 
years , later. The price of -oil 
.shot upwards 500 per cent and 
; this development, added to other JjirHTIlCiyOc S 
'strains, in the world economy. v 

■plunged the world, into a reces- 
sion from which it has yet fully 
to recover. ' . 


gallons of diesel fuel at this The Federation of Personnel 
remote location. Serrures of Great Britain 

This , simple type D f windmill. Sir,— You report in the Jobs 
with its blades mounted on a Column (June 22) that Mr. 
vertical axis and curved m the Crosby of Professional and 
shape of a skipping rope, was Executive Recruitment should be 
developed by toe low-speed pleased ^at his organisation 
aerodynamics laboratory of NBC made, a before-tax profit of 
in Ottawa. The Magdalen Islands £20,000 in 1977-7S. I do not believe 

scale-ujf to 3 wind generators that Sire 3 b^pfeism^e Ta^ed^i th°the 


plight 


Overseas, we see a low . level a ml Development Committee. may eventually deliver one figures upon which this minimal 


of -capital formation in 
^ industrialised countries. 


the St rathclyde Regional Council. 
the- 


raegawatt of electricity. 

. . , # . - Sir.— I expect our London J- Koop. 

rapid accumulation of tteot in f r fends *o argue their “ case " for Canadian Htgh Commission, 
; the developing countries and special treattnent with all due MacDonald House, 
the problems of recj cling toe v j gour - j,ut really. Messrs. I, Gvosvenor Square, WJ. 

vast accumulation of . financial B * ennan Churchill's article 

resources of the Organisation of j 1S g0 un- 

-Petroleum Exporting Countries' SatenSa * 

states: Industrialised countries Lon^-g ] OCal male unem- 


Expanding TV 
coverage 

develop’ thelrjocal business aid p^'cr’^e^world^tta, ‘"a^e g™, to* Head of I .ncieasea ay wen over ou per 

SSSd “to Sfoter'aet the M S^r-Uay I take issue with my cent. This pattern was repeated 

SlODliSn effect of . large oil 5 l.,. e ‘S5™Sev- ftiend Chris Duokley? Io last »f the larger agepe.es, 


profit is based since without the 
state subsidy of £2.7m there 
would have been a thumping 
great loss. 

Moreover, the increase in fee 
income of PER (from £2.35m to 
■£3J5/u) amounts to an increase- 
of 37 per cent This occurred 
during an upswing in employ- 
ment market conditions and when 
the fee income of toe nearest 
From the Head of Music and Arts comparable private agency 

increased by well over 50 per 


crippling 
import deficits. 


SSM?he? a tianLond I, oK Tuesday's TV piece he wrote 


It is also important that the 

r ; Mechanisms are needed^to worst area Pouter, andl^nfiol bS 

marshal capital expertise ? niy &Je . w.to j unemploinnent “">® l tow h a a r s ds ^ proceeding lo <*ed at in the light of what the 


JUlrtlOUtfU —r— y|||JT lA>hVf»h 

place them at toe^disposa , ower than Lon cfon-s JJW- JJowIv S^Britoto TV tor'lS or' 20 P^vale sector does in the same 

Of promising developmental one -of. . « London *■ worst hit siowiy in Bnusn ' * w mber of circumstances. In 1976-77. when 

•enterprises. Since Jte formation, areaB .- Glasgows average male s ear ine numoer ai subvention was some 

Adela has. employed over SSbo unemployment rate is as hxgb gmw »>gj- ■W 1 ^“ Sfinl over f 1.6m was a Sibuted 

.to impiement this purpose. It as that of ; Deptford s. London s _ commensurate return to problems associated with those 
.has -been rn strum enul in third worst local area and a 13B offemg a commensurate ret u difflcu]t t0 lace In eve one 
developing add espancLng over peT cent * 2$ tm^ Londons seems to shnnk and shrmic^na £if the detailed activities paid for 
160 companies pnneipafly m toe average. Your readers may be “g ^ were a smal ‘ by this part of the subvention 
agribusiness and mwtufactimng interested in toe table nf our “‘““"J- chanter and ^ Private sector is active, and 

cam, anrf hac created employ *• hnttom ten ' local areas, it we neea to see cnapier ana 


fields and hac created employ “hottora ten.” local areas 
ment for over 350JJ00 people. does not make pretty reading: 

New. development opportiinl- - " ' 1> ^' B 

ties include a prim ary., imgatioa Bridgeton ?- s #5 

System in Brazil, a construction Rutheijlen -'-g 

block factory, in Guatemala, an East erho use -3.0 

African nalm plantation and oil Sprjngbum *. 

procMsing Utility in Vsiieauela. .. Kottesay -. -. JM 

Indeed our' experience . with ..:Farkhead 

Adela led to toe .creation in Asia Sal tc ° at ? 

M V1CA. (Private Investment . Cambuslang 13.9 

f Sa) based in Alexandria- 

Company or 13.5 m skiguix hum <- U i.u. u 

B tn "j*. no re and >n Atrica • -ariiiin’r"" imenraioyment, ’ areas. In the 1960s there was In the conte 

feiFIDA Tnvestinent Company . JS ^pmDloment office nothing like Ron Eyre’s Long market and the 


verse before accepting this ^ act s ° ’s reflected 

gloomy view of TV over the past J ° toe numbers of the difficult to 
tiva decades. place for whom it obtains employ 

I’ve worked in T\' for exactly “ant. The point I am making ia 
20 yearS -toice the early days of “f that the subsidy « 

Monitor— and J know that In the I* 111 that only be us , e< | 

arts field there has been S ”*2^ iJ* com meroial 
enormous expansion rather than IV {. ^be^ven 

diminution in serious pro- valuable work of the private 
grammes making demands on the ,n dealing with similar 

viewer. The same is surely true problems is also takea into 
in science and other cultural a ccount 

context of a rising 
same question 


social subvention, the 


based in Geneva- . April 1&78 kY^bj°^ ent S«m-h7 no equivalent to Mike able 

The role Of foreign private . - . -J • .Atm,,** Iondon's Bibbs’ two hour study of draw- minimal profit o! £20.000 is not 
sector investment in develop- _ ^.iSSSS^SaS * rnay^ ^ have ing, or. George Steiner’s tvmhour something_of which toe business- 





any 


GENERAL 

Labour Party national executive 
meets. 

TUC General Council meets. 

Port of London Authority holds 
emergency Board meeting in effort 
to finalise a dock-closures plan. 

Public bearing by Civil Aviation 
Authority of applications by both 
British Airways and British Cale- 
donian Airways to be designated 
the UK airline on uew London- 
DaHas/Fort Worth route. 

India holds fifth of seven fort- 
nightly gold auctions. 

National Gas Consumers’ 
Council annual report. 

President Giscard dEstaing of 
France begins visit to Spain 
PARLIAMENTARY BUSINESS 

House of Commons: Motions on 


Today’s Events 


EEC documents on contracts 
negotiated away from business 
premises; on the aeronautical 
sector; on criminal law; and on 
Ancillary Dental Workers 
(Amendment! Regulations. 

House of Lords: Theatres Trust 
(Scotland) Bill, and Nuclear Safe- 
guards and Electricity (Finance) 
Bill, third readings. Suppression 
of Terrorism Bill, and State 
Immunity Bill, consideration of 
Commons amendments. Protection 
of Children Bill, third reading. 
Local Government (Amendment) 
B1H, and Rating (Disabled Per- 
sons) Bill, committee. Debate on 
arrangements for protecting 


British shores against oil pollution 
and on shipping lanes and com- 
pensation. 

Select Committees: Expenditure 
(Trade and Industry sub- 

committee). Subject: Measures to 
prevent collisions and standings 
of noxious cargo carriers in waters 
around UK. Witnesses: British 
Shipbuilders; Harland and Wolff 
(10.30 am, Room 16). Parlia- 
mentary Commissioner for 

Administration. Subject: Review 
of Access and Jurisdiction. Wit- 
ness: Sir Jdwal Pugh, Parlia- 
mentary Commissioner for 

Administration (4 pra. Room 7). 
Nationalised Industries (sub- 


committee C). Subject and Wit- 
nesses: Independent Broadcasting 
Authority (4 pm. Room 8). Euro- 
pean Legislation. Subject: Pre- 
liminary draft general budget 
1979. Witness: Mr. Joel Barnett, 
Chief Secretary, Treasury (4J5 
pm, Room 15). Joint Committee 
on Consolidation Bills considers 
National Health Service BiU 
(Lords) (4.30 pm. Room 4). 
COMPANY RESULTS 
Final dividends: BPB Industries: 
Chubb and Son; Hicking Pente- 
cost; MK Electric Holdings. 
Interim dividends: BlundeJI- 
Permoglaze Holdings: Hardys and 
Hansons; M and G. Dual Trust 
Trust Houses Forte. 

COMPANY MEETINGS 
See Page 30. 


Wbrldwide... 

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ideas like these into realities. 



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We are the 'Ideas Bank! The 
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'The Ideas Bank 5 


Head Office - Commerce Court, Toronto M5L 1 A2, Canada 
European Operations Office - 42 Moorgate, London EC2R 6BP. 



J 


28 



Financial Times Wednesday' June ' 28 1978 

Over £4m advance 


Standard Chartered slows in second half 


WITH SECOND-HALF profits only 
marfcinally higher at £S3.68m 
compared with £G2J27m previously, 
taxable profit of Standard 
Chartered Bank ended the March 
31, 1978, year ahead from £100.94m. 
to a record £12fi.I5m. 

The figure includes an £18B7m 
(£13.18m) contribution from 


£41.95ra (£34 -23 m). 

.With minority interests taking 
£S.32m against £S-28m and extra- 
ordinary Items £ 1.64m (£0.9m).- 
attrlbuubic profit came out at 
,£52B7m (£47.4m). 

Earnings per £1 share are shown 
at 7S.9p («9.9p) and a final divl- 


1 9.3306 p net. If the ACT rate Is 
reduced a supplementary pay- 
ment will be paid in January. 

Dividends absorb £13.48m 
(111.97m), leaving retained profit 
up from £35.43m to £39.39m. 

Sec Lex 


Record 
£843,696 
by Halma 



INDEX TO GOMPADT HIGHLIGHTS 



Company 

Page 

Col. Company 

Page 

Col. 

Bardon Hill 

28 

1 Joseph (Leopold) 

30 

5 

BAT industries 

29 

6 LCP Holdings 

28 

5 

Bo water 

30 

3 Northern Goldsmiths 

28 

4 

Caird (Dundee) 

29 

3 Press (Wm.) 

30 

4 

Century Oils 

30 

1 Property Holding 

4 Rerrwfck Group . 

3 Sears Holdings 

30 

4_ 

1 

4 

Davis (Godfrey) 

28 

29 

Equity Consort 

29 

5 SGB Group 

28 

8 

FJ4JF.C. 

28 

4 Smith (David) 

28 

5 

Guthrie Corpn. 

29 

4 Standard Chartered 

28 

1 

Halma 

28 

1 Tecalemit 

28 

4 

IXLGas 

28 

7 Tocfay’i meetings 

30 

5 

James (Maurice) 

28 

2 Tran wood 

30 

5 


• Ctnxent 

. payment 

BAT tad* ... 2ndtm. 3.05 

f « i a Bremar Trust . L0 

‘ond half 

Balma ............. L4 

the various tax advantages and imperial Qmt Gaa2ndint 5-SlH 

strong residual values has led to Maurice James :. 0.5 

boom conditions in contract hire Leopold Joseph ; 6.73 

and leasing while the rental Nthn.~ Goldstoidis . ......... m 

activities have benefited from Property Holding «mt lirr. 4.04 . 

price increases and a very high Ren wick Group 1 

utilisation factor. Given these Rlverview Rubber 2ndmt. 4** 

conditions the Ford distributor- SGB InL 2.73 

ships have performed equally Sonic ' L48 

well. The motor industry is look- Standard Chartered 1L6 

ing for a record year in 1978; and Tecatamlt 8.65* 


DIVIDENDS ANNOUNCED A/tCl 4/flU «08 

' Date Gone*' Total : Total. •' ■ . L.V ^ : 

Ctnxent ' of spend tog for. - 1 m* "' ' J" "IT* air* 

■ w ”“ t 2 ? . : 3E tor i t tras 


July 28 
Aug. 17 
Sept. 13 


July 35 3.71 

Oct. 3 — . 

Aug. 15 3* 
Sept. 21 . 2J5 
AUg. 25 1.46 
Aug. 18 1083 
Aug. 5 1.93 


FROM TURNOVER' 2L6 per cent Power and Ught. the North Rra 

'.higher at £l54JS4m, taxable profit gas producer and oil explorer, 
of Imperial Continental Gas Aero- reported higher projts. ^ JJJ 
ctatfon rose 18.7 per cent from distortions JJg 


allowing four 


Ss to“tave°?SetL bSTSSS curfei,t period and as toecast w&vr 

at 87 Ip seem to be over-reacting 
to this point on a p/e of SB and 
a yield of 5.8 per cent, covered 

nearly 7 times. ", I lofiiir* n n a rn a'n n ‘a fj 


sepT 8 - - - • Si : SSS SmSWIS Sa &3 S^hto ir*. 

Aug. £1 nff . 1 SI, 1878 yw. At half-time profit »«** *“JJ 

— f 05 |g TJa was down from£L28m toJEUEto VtSfwS dJe 

uly 25 3.71 634 5.31 to a changed rating follow tog 

let. 3 — . • JL . — 5““® indication^ a 50 per cent dm* 

Lug. 15 3* — 10* ewige* of 4^4 increase if UK restrictions 

•ept. 21 . 2L5 — i_. . 5BS ( fttAlm ^ ^ ^ are removed from August I. The 

Lug. 23 1.46. 2.32 . Z»j oi JS&&L -iff!*!!? p/e Is 82 and the yield, aasum- 

s*. “ “Ss -a? a? ag.^sawggtss: b j& ywvaf* s& ; 

“ga SS5^tt*aJ*t.SSrT55«!. L 

■sSsTNS.® -SrSwfe-* 5 ' j 

minority totals, <rf mL.080 


Tecalemit 

Sales for the year amounted to profits of £219,520 ( £149,709 loss), IHYYlTlC If I . K riMIIIN ICV ' »frecto« Intend Terommendhut a" O vv '* J 

£ 13.1m against £10A9m. Net the directors said second-half 111111115 IXr " ^ • 3.444p final at tile August AGM, 

profit was £561,000 (£405,000). prospects were encouraging and * * unless Government policy toaMs REPORTING PRE-TAX profits 

The net dividend is the forecast continued profitable growth was £■'’5 - • AM 4t inappropriate. If the final Is ahead from £3303,000 to £4,432.000 

7.&p (2.6p) and earnings per share anticipated for each division. T, l. / |¥1 ft f o /\ Jl /m IfM . paid the total wtB be IS^Spu Jf. fbr the half-year to March SL, 1978. 

are stated as l8.4p (13.7p). They now say further develop- I T jfal . /J 1 1 not. the payout wlU rise from ** directors of SGB Group say 

Mr. J. Gregory Tom, the chair-- ments are well advanced to WITH PROFITS showing an * m " * " ■ ■ ■ 83BB72P to 8B09p. • the second-half has started well 

man, says that with minor excep- Improve the net worth of the advance of 31 per cent in the . , „ The group's prindpal UK subsi- ® nd another good year is m 

tions the operating companies company. year ended March 31, 1978. tCP Holdings, the property, On the current yrar, dm Board diary, Calor Group. lifted turn- Prospect 

increased both sales and pre-tax Following the restoration of Tecalemit plans to boost its divl- manufacturing and distribution says the group has made an over 22 per cent -to £151B7m and The recent -trend of Increasing 

profits (op by 232 per cent) dividends with an interim of OAp, detid total from 322p to 5.47p if group, is planning to raise £42m encouraging start despite, di meaft pre-tax profit rose from £8.47m profits at home, and declining 


ISSUE HEWS AND COMMENT 

L C P rights to 


L C P right 

raise £4.2m 


^£135.000) attributable profit came 

at n722m «fcain« JElhAQm _ 

i^sars ™ ^ SGB ahead 

h&18m (£5.07m>^ appBca- k,VJA ' ttUVW “ 

F ifea of ED IS. SwEQinae per £1 . • '-» 

L-ahare are shown at «js 2p nfiri Q A rip 
r:;(89:Q2p). and hududing tin Del- HliU i3LCo 
tjan operations at ^38p (51-3ftp). - 
A second interim dividend of _ J ___ __ 

-SJBQSp has been declared, and O^OOfl 
■ directors intend a' J 

3.444p final at the August AGM, 

unless Government policy tnaMs REPORTING PRE-TAX profits 
it inappropriate. . If the final Is ahead from £3.503,000 to £4,432,000 
paid the total wiB b« isjs« ■ if. fbr the half-year to March Si, 1978. 
not. the payout wiU rise from Dm directors of SGB Group say 
£n972p to 9206p. the second-half has started well 

The group's principal UR subsi- ^ another good year is in 
diary. Calor Group, lifted taro- Prospect - 


despite the con tinning low level of a final of the same amount makes statutory limitation 
activity in the construction the total foijthe year Ip net (nil), expected, on July 3L 


FOLLOWING A rise from £170.107 industry. from stated earnings of L4p per ^ ^ ^ aimottSrospre-tSVofits f to: 

to £403,661 at midway, pre-tax The major part of the ©roup's dry 20psharo— the last Parents ^ how^er^bre the date of the ^rtoMan* a 5 M2 m!au£- 

profits Of n. aim a wen ahead at a and coated stone is used for road amounted to 2p gross in respect AGMi on August 4, the Govern- pared with £3.Bxn on sate £29m 

rocord £343,696 for the year to maintenance in the Midlands and °f 1371. ment moves to extend the neriod hfe'her at £ixa.4m. The riehts 


record £343,696 for the year to maintenance in the Midlands and 
March 31. 1978, compared with the the current cutback in govern- 
previous year’s £560.758. Turnover ment spending on road main- 
advanced from £7.97m to £9.B2m. ten a nee can only be a holding 
In January, the directors said operation and wiU lead to a need 
that first-half results reflected a for more substantial maintenance 
further indication of the growth programmes in the future, 
potential of the markets In which Following a successful year the 
the group was now established crane and plant hire companies 
and forecast that full-year profits extended their range of equip- 
would be significantly higher than ment and continued the policy of 
for 1976-77. replacing much of their older hire 


The full-year result was struck fleets. 


Godfrey 
Davis at 
peak £3.7m 


. . Th i'SS company DESPITE forecasts In November ISfi'ttat' Sf lK SE 


statutory limitation ends, as by way of a rights issue. trading conditions to the enein-_- to no.8m after depreciation of Profits abroad continued during 

expected, on July 3L At the time the company eerine i an lJ 1 ?f? ls -f i !T 1 2f'44«2 f7 - 97m 'the first-half, the directors report. 

The proposed final is S.6482p— announces pre-tax profits for the Cood tr * dln ^ rowtito to Ireland although there has been an 

if however before the date of the year to Ma rch 31 of £42m, com- ?* the. peak profit. It improvement to some overseas 

AGM, on August 4, the Govern- pared with £3.Bm on sate £29m 2™ tochides £026m on the sale of the companies, particularly Holland, 

ment moves to extend the period higher at £U».4m. The right's Sti. * asets Gator Transport Inter- First-half profits were after 

of restraint and if the ma xi m u m issue is of &D90.386 ordinary 25p national In Germany and pro- lower interest of £727 D00 

increase allowed is less than the shares at 72p per share, on a rtsion for an expected loss of (£940.000). Attributable surplus 

amount now recommended, a new one-for-four basis. In the market “materially .exceea xnax was H>.67m on the disposal of shares rose from £1.65m to £2.02m, after 
proposal will be put forward at LOP’S shares dosed lp Wgh»w at ye 2£‘ Ruminant Nitrogen Product* tax of £227m (£1-81 m) and 

the meeting. 90p. ^fitefS^ESn to a to ^ 04 Som £L7to tea mtoorltka. 

The profit increase to a record The sew duxes do not cany the ra (4291 * written off to respect of the con- Stated earnings improved from 

£3.7m foDowed an advance of 5S right to receive a proposed final Thr^Pensnett Tr&dine Estate verslon of Imtane cyfindersfo the 7J»p to 9.7p per 25p share and the 
per cent to £L68m at halfway. dMdead of i79p p^^hare for w£ retmto^at ShSLjS convenient “Switriron" hrterim dividend te stepped uo to 

At that time the directors stated 1977-78 hut, barring^vidend con- atouenmaAet v^ue on the j^STOrtem. The total COStoTthia *.75p (Mp> net— last year's final 
that provided the buoyancy of trols in force after the current of its use. at £19.7m, rep. conversion is being spread over wa» 2.7 , S4p. 

ord .!!?.f or V tl S ued ’-. It l***™*™* «*J*lro and any resenting atfirplus of £2,6m pyw •«. ' 


Capital 
>r cent 


(Uture wax 58.9 
v than in the 


comment 


debit) and minorities, attributable tions, further progress in the leavin'* taxable profit of Godfrey cchieral from sales 25 per cent 
?^iJL ncreas ?^iSJS! 3 ' 728 -!? current year, can be expected, the Davis for the wirch 31, 1978 year at -^? m »,.f^ flecliDg ? f “L‘ 


£563^159. Comparisons are chairman 
adjusted. Meeting 

Earnings per share are given as 1L30 am. 
11.76p (8.7p) and as forecast, a 
final dividend of L398p subject to 
the expiry of dividend controls Ta mr 
doubles the total payout from (»/| 
l_239p to 2J18p neL The directors JLTXe 
propose to double the authorised 
capital to £2m and a scrip issue of Till* 
lI-for-10 is also proposed. I- Ml I 

The directors report the sale of 
a freehold property on June 23, 

1978. for £450.000. This property T, j 
which is surplus to the group's ‘ 


are chairman says. 

Meeting, Leicester, July 20 at 


for toe n£* “ iff ^ 

im £252m to a record £3.7m. ■ usefuI improvement - m win help strengthen toe capital 


tal dividend in the current year by j Henry Schroder Wags, previous year at £25£7m. The A 27 per cent rise in pre-tax profits 
r 148 per cent . - . Brokers are Rowe and Pitman,, major items were additional is no mean achievement for a con- 

Mr David Rhead. the company's Hurst-Brown and Smith Keen cylinders, tanks and vehicles to Wniction related ^ ympany, like 


M. James 

u3or-10°is^s^prorw^ 15806 ° E tlllTlS 111 weVT 'extraordina^^ losses"** of bustion englneertog . " Tfre direcj finan^*l V *year^ LQ acqutaS two apparent f rom the balance^pot ^ comment. ‘ buo^m. 1 The'oro^^fOTmanra 

1X1 £0.97 m. tors state that all divisions and vehicle distribution outlets, —at March this year total bofcrow- T iiTtte TTK h« morB than oSr**f 

a freehaJtT propSy on June^ A/iteA AAA Earnings per share are shown companies in toe group did welL Newport (Gwent) Motor Company lagajjmounled toahn^rffto^ ttiree mrior . ^ C. « fall ^of ^06.000^ to overseas 

io4 fl!. aKn 7 tS!c 4- 4 / 1| I II If I at 22 _3p (lL7p) and the second with lubncation systems and and The Halshaw Group, and HKB against shareholders’ funds at Gas all contributed to the strong moats to around £400000 csiued 

whfch f is sS?us‘ t ™e P SoS?s ' ^el/UU interim dividend of 2.335171p garage 1 equipment the outsttnd- Steels (Sheffield) fSrffi aggregate EOffl gearing, ho wever. , unprovement in its reaulta. The in wria5n?rom- 

rea uiremenS^conjDrisS a facto P rl „ ^ 7 takes the total from 2.993S32p mg performers. The current year cost «rf £83m in cash and 839B7I does not maduly worry toe gnmp npn-consoUdatod Sol*te «*»“ p&ted orders Sth nw^vrork 

Mnin^n? PRE-TAX profits for 1977 of to 3305171 p If the rate of ACT has begun satia&ctorily and ordinary shares. which sees strong growth pros-, dates and allied companies over- Even so the marker lx InoTHn* for 

Surrey 5 C TlmDr(K»ecto a will^urtoer S aarlc * v J ?“S_ Indastries > is reduced P the dividend will be another year of growth is in addition capital expenditure gects over toenext few y»a. fame roryfi at dem and, particn- from thewoup tor to? toll 

steSSthen to^firouo? SSSdJ fonD ^J„Y° rk amounted adjusted and if dividend restraint expected. last year amounted to £58m. most Setunroa capital employed ^ *5* J ® wr year, which puttthe shares at 

SfbabnSShSt theyS? * is discontinued a third interim not gg gg of which went towards the grant a mare to pc^centlmt contributi on w asboostad -»r • * fig* onanrtetetive SSF5 68 

deficit of £155,000 for the exceeding 0 G94829n will be paid. J** continued development of the the target for mdusfrid interests ^.beneficial currency movement and .i^T a vtaid^of^ ' At wemit 

is shown at 633p (505p) per lOp P rev *ous nine monthtL Turnover The tax charge reflects ED 19, Trading profit . ate zjsi wrap's trading estates . at ' fa per, cent LCPjasfiaw^gft-; n daw-l»ck'^ dfridends toDow- tevels the shares acre attractive. 

was better at. £5 .23m against and directors consider first year imereM ... ... „... ¥U 173 w Pensnett. Stourbridge . and mitted. almost- £ l lh n . for invest- tog .the <usiot of Belgian restrio* 

Th* ;irmm manufactures safetv n ^ Sra - __ tax allowances are areilable for ™ U5*™ *“ *25 fS wnienhaD, the construction of five ment, much of it to the tradtog -tions but JT these are netted out 

awtomf fire “deniSromSS ^7 “f* the group’s vehicle rental fleet 7"~ J® jg new Homecentre stores and toe «wtat» where profifett^ tone ta • RAIVKTRQ IWV 

control products and specialised mootomonuu At balance date fixed assets were BmordiMry credto — h m i» completion of a second » to comri^tte-Tbe main TO mb-. oANKtKS. UW. 

engineering equipment^ two £18.69m (£14^6m) and net current *£0 >u, 2? te tTO im Min for Stourbridge Brick confident howeve r, ; th at rental >gtouuy.- Jo? the first rFDITC ~ 

u&m b f Tnrnover 5,235 Lisa aqvtc etnnd at w. «im ffijjSmi Dtodemte sk !S7 Company. income will double over five years, time to Its history did not suffer 1 RUSjt 

operating profit -2is 8618 1 '• m reserves — . t» u» This year the company Is No profits forecast has been any gas shortages during its peak 

1 TTfll 55 *5 o AAmmont _ . budgeting for caprtal spendfag of made for toe current yak* and the seUtog period. As a result sales Yesterday’s headii* on too 

Bardon Hill tSSSwS^ip"”^ S ~ • comment • comment Which wm be ^ used 0 to promised dividend hikels hardly revenue was up* 22 per cent, sales Bankers Investment Trust story 

- . » . m. Jama Houinss — so Godfrey Davis has marked time TeealemK.’s foil ™»r ‘ »«- continue developments on the generous. The company is none- volume by 50 per cent and profits was inadvertently abbreviated to 

nparc tnrPP3^l a neror da rgei « m in the second half but this was -ZjSIlTZ. oi^ypr^Z* three Homecentres (£DJ25m) and toeless confident of a fcood year, were substantially better despite Bankers TYust, whkh is the tide 

u/iLL<fa3i AdjjnatmijKt • » — generally expected; there were a per n ^TT ir °“_Sf^ farther expand vehicle distrfira- following a disastrous, per- w* tocreaw to the valve conver- of a completely separate UA 

The Bardon ffifl Group, whose S** 1 *' ^ fewer disposals of ex-hire cars tom facilities (H>.75m). No more formance by toe. engineering aton cost write-offs. Century banking group. 

shares are traded on the over-the- n ei pnsu iso nw while the comparable period was 22:™® „L a ^ , ??- a JS2S? acquisitions are planned at the division last time With more — ’ . 1 

counter market achieved pre-tax Extraord. debits 34 n» exceptionally buoyant. Overall 3 m!?L S *o? moment but now : that than £350^)00 -lost by a Leyland 1 

profits of £L2m into* year ended ?S2 * M ? tbe star performer has been toe 5^"*®* iSSJL vehicle distribution has been strike at Speke aim toq con- _ . 

March 31, 1978, compared with 5^5* ?? — - 1 S * rental, leasing and contract lore sales complemented by four Ford main sequent difficulties at Coventry, J " ~ " ,,1_ . 1 


up from £2J2m to a record £3.7m. - wm neip snrengtnen tne capital . — 1 

- Turnover rose from £50.0 Ira to ma f sl ^‘ „ .. ■ • h^ and the proceeds, together • comment - 

£753lm and after exceptional At the attributable level profits with two additional secured • ^ Tu rnover at another sui 

items of £168 000 (£83 000) and emerge ahead at £LSm against medium-term loans of £Sm each. As at toe. time of the last rtohts'Centmy Fewer and Uj 

tax of £0 86m ?£l 06ml net nrofit £l-43m, giving earnings per share will be used to fund recent issue two years ago L.CP. is both creased l* per cent to £*.- 

was £2r67m (£L38m) up from 143p to 18^p. acquisitions and capital spending helping to pay for acquisitions profit before tax was 

After minority losses of £34,000 The group has interests to fluid undertaken both last year and in and strengthening its ehpMiMMib tf0.63m) after charging 

(£36,000) attributable profit was transfer and filtration, lubrication the current year. • for. the future. Certainly the need (£0-66m> for depredation. 

£2.7m (£0.44m). Last year there systems, garage equipment; com- Towards the end of the last t0 .™areh°ldMS-- fe. • 


meet peak whiter requirements SGB, the largest scaffolding 
: - and continuing growth in bust- supplier and contractor in the 
ness. UK. But where SGB is s coring 

• Turnover - at" another ephridiarv P’ rer harder pressed competitors 
ts Century Power and Light, £ te .that it has been consistently 
U, creased I* per cent to £2.4m The faiwT 

ag profit before tax was JELlTm WMher concents have failed. 

£ (£0.«m) after cbarefuK Wte y°T7. 8r ..^ e 

t®*” fw d ' Bred>aoa - KtM 5f?S 

^ hiriiment activity which Is fairly 


comment 


buoyant. The strong performance 
In the UK has more than offset 


Surrey The proceeds vrill further inaosine^ is reduced the dividend wffi be anomer year « growc 

sSSSthen th^group’s aSSd£ ? d i« sted ? di ?^ n - d r ^ traint “P® rted - „ 

strong balance-sheet, they say. SUS 7ft 5P’ f^thS w d^ntinuedathird interim not gg 

Net asset value at toe yearnrad 2n* £ SSS exceedmg 0.694829p mil be paid. ^ mrnovo- azjSSs 

is shown at 633p (505p) per lOp P ,™ vl0 25J line The tax charge reflects ED 19, Trading profit . xsn 

share ri a 5oJ >etter at 5523111 ■ aeainst and directors consider first year yaw - ■*— iw 

The group manufactures safety 1*7 1K * allowances «e available for ™“£ e ‘ orB 

systems, fire and environmental 12 9 the group s vehicle rental fleet n« profit tws 

control products and specialised month* momns At balance date fixed assets were Esraardinur credit* — n 

engineerinK equipment _ no wo £18.69m (£L4^6m) and net current £2$“t*We ; 1J« 

SSa» 5 «' ™ S S ^ **»et. .food at asm ICUOm). J« 

Bardon Hill Tra nw nnd Crmm • = i J • comment • comment 


lsre mi 

£000 ION 
32.988 29432 


Turnover 

Operating profit 

-n TT i n Shares uaocs. profit 

Bardon Hill * — 

1 , n . M- Jama HaUUass 

beats forecast 

The Bardon Hill Group, whose T^Satton 10 ** *** 

shares are traded on the over-the- Net profit 

counter market achieved pre-tax EcraonL debits 

profits of £L2m in the year ended Ayatobte profit 

March 31, 1978, compared with - 

last July's forecast of not less tin r*«p SoTtt 

than £950,000 and 1977,000 in praHaT 


BANKERS INV. 
TRUST 

Yesterdays heading 1 


Reinlned nrofit 37 mi *v««uu. icawue mu vuuumi uuc _r . .._j.i_. __-I — 7 I-il wuipicuicmcu ujr juui ruta mam se^uan uhiiwu uw Ok vu*cuuj, 

ie f s “Loss, tm rawest 'rf" pre-acqnwtton division where profits are 80 per . to . ^ dealerships, Mr. Rhead says the the situation can only get better. 

£977,000 ta profit*. cent higher. The sharp increase SL!?® 1 “1 A ^ a - ^ e group will certainly be on toe look At 90p the shares 'stand on an 


At halfway, when reporting in new car prices coupled with Hatched the group's sates growth, out for a fifth. 
; — 7 The m crease in toe number of 


ex-rights yield of 9.6 per cent 


GEI 

INTERNATIONAL 

LIMITED 


Government vehicle testing 

STSSSS David Smith returning 
bST-siXS £1.6m tahdders 

have been turning to the com- David SL Smith (HoSMugs), toe The scheme, which is thus also 
panya lubrication systems to photo-litho printers and- carton aimed at fending off' such bids, 
reduce servicing expenses: The manufacturers, has proposed a would involve the issue of one 
rtmres wflj no doubt attract a reconstruction scheme, which wifi share In a new holding company 
great, deal of attention following result to shareholders receiving and a cash payment of 30p for 
the company's announcement that a cash distribution of 30p that each existing David Smith’s share, 
it intends to raise the annual wEU be subject to, at toe most. The company also proposed 
dividend payment by 70 per cent 30 per cent capital gains tax. yesfert&y a - second . interim 
A .t 137p, this would increase toe Th e scheme, which is stouter dividend of L4l2p which raised 
yield from AO per cent to 65 per that proposed about a month the total tor toe year ended April 
cent Meanwhile, toe p/e staSS 

at 72 ford-based greetings card, com- propp®ds ^SJlhw vnth toe 

. pany, will involve the distribution 

■wy j | of some £L6m to shareholders. ' t0 re * eased next 

JN ortherii: jsnsRBtt wu 

-rn -rn _ yesterday to 97p to the market of 2 a ^? 

rinl LH» Sharpe, whiri. annoraced Smitote^tetoed. «pftal cf - tun. 



Standard Chartered 

BankLimited 


# 


TTia Directors announce the results of Standard Chartered 
Bank. Limited for the year ended 3 1st March, 1978 .as follows: 

< : 1S*>8 1977 

• £000 £000 £000 £000 
Trading Profit ' 

Bhnk and Subsidiaries . 107,179 96,759 

. Share of Associated 

"Companies 1W67 13.182. 

Profit, before -nutation and 


Northern 

Goldsmiths 

progress 


v-ViteJUUUIO *™r« 

^ •' tion built up to recent years, directors Mr., j. ^Itfmy^an d JMr 

lirnOTCSK ™« has resulted in an accumula- W-H- hgM to4 remaining 

r A V tlon of cash by the company which 8 Jl ..,trnV ■MriiimTiii.. 

_ . . • • if Anril V) 1977 exceeded £1 6m ' Another subetannal sharenolqer 

AN INCREASE from £315^99 to fevUl0 ImP^nai -Groan ■ Pension 

£384^42 in pre-tax profits is 641 ^ c ™ tornet Ponds whi<* have to: interest of 

JiT N ? rfh ^ 1 Go3d ' Smith said yesterday' that « ** T __ 

S£f trader normal market conditions. - ■ See Lex, 

^*£*1 a %. 197 ^ nJ^?’ the board, would have significantly 
over rose slightly from £3.07to to increased the dividend paymratV VoarlmCTC - - - 

, But due to government restrio- 1 6 J.|! IllltiS 
The final dividend is stepped up. tions on dividends, this, was not . _ , 

from L00207p to i2369p - net practicaL - - gf : 

making a total of 2.0869p against As a result, toe Board believes .4*1 *v8 /D. , : 1 

L85207p. Earnings per 35p share that the company’s shares are eonnon rate on the local 

are stated at 6.19?, (5.41p). ’.materially . .under-valued which. n ,™ H « a P“ ^“L™, “g"’ 


Smith, i‘. chairman. 


Turnover 
Pre-tax Profit 
Earnings per Share 
Total net Dividend 


1978 

£50.48m 

£5.55m 

10.6p 

4.1 52p 


March 


1977 
£40m 
£4.1 4m 
7.8p 
3.715p 


up 27% 
up 34% 
up 36% 


Chairman, Mr. Thomas Kenny, FCA reports : 

Record sales and profits for eighth successive year. 

* Over five-year period sales have increased by 1 34% and profits by 234%. 

Direct exports up during the year by 30% to £5.8m. 

A further £3m invested in new buildings and machinery. 

Strong financial position, with net cash and government securities £0.7m up 
at £4.7m. 

Net current assets increased by £1 .4m to £1 2.4m. 


The coupon rate ah the local 


G «u>ku ai o.i»p vs-^PJ. ’.maienauy unuer-vmuw* wnxen. rfh orItv one vear bonds has 

t ^U , J2f t /l?L t Ji5.7® ar emerges Ste?v^bto& mith TOlxiera ^ lc ** JSto SSm 9* parent to 104 per 


at £172,563 (£148,926). 


cent This week’s bonds are issued 
at par tod are dated July 1979. 
The -issues are: Cygnor Dosbarth 


FNFC-up to £8m midways 

but outlook uncertain ISsss&lst 

HAVING RETURNED to profit- port group amounting to £14.61m Western Isles Island^ Conncfl 
ability In toe second half of -tod sufficient remittances have ASEPJSyTSjJS® n?,S?S 

1976-77 (with a nre-eax balance already been made. to cover this (£|m>, , ClQr of Glasgow District 
Of Slim Rr«rt iJterttwS wmhk amoimL This brings up to date Council (£lim), London Borough 

¥g £ SsSEs ses ws 

3 °biStog toe tSS?tew Stofthe “I® 11 interest on aU tens Rhymney VafieyDistrict Council 
ero^lfnc amounts to £26.09m but no Is ttustag £Jm of 11? per cent 

KStai M poS!ton \r,Ta^S^- ^ ^ im “ 

f $®* * l *“ t i he progress, made r^g ^ the profit for the -There are ’ two variable rate 

7 six months te .to reduce the net bonds dated June 1983. C3ty 

“^rtency for shareholders or deficiency for sharelmlders to of Aberdeen District Council has 
£67.7m and the substantial, amount £ fl7 _7 m after deducting this issued £}m at par and the London 
of the groups borrowings. from a total of £9LSm in respect Borough- of RichmoinHipdn- 

Since the end of toe half year ^ deferred and subordinated Thames is raising £?m. 
interest rates bave risen and this jgans the solvency residue now 

bears heavily on tjbe group, they amounts to £23 .Biil •. ¥7 ACT 1 a v/^T TA 

stress. Interest levels also affect Cash generated during the half-- LAfll AlitTLIA 
prices of properties and eonse- mar and reductions in liabilities'. WATT7D flir 
quently a reliable estimate of were both ahead of expectations “ A * 

results in the second half is not. and the group continued to East Anglia .Water Company 
possible but present indications experience ■■•■the - lower, interest announces that .underwriting. has, 
are that a profit should be earned, rates and improvement in the been completed for an offer 
The long term future, however, property, market which . were of - £ 2m 7 per cent Redeemable 
remains uncertain. - evident in the tetter half of. 1977. Preference Slock, 1983. - 

The first-half profit is after These were important factors con- . _ 

charging interest on the income.' tributtag .to the improved resate, DTTCTi fD . . 
deferred and subordinated loans the directors point out.- nratftin 

amounting to £6.1 8m. The group.. The profit .tor the. half-year Hestalr’s rights issue of 3.6m 
profit te increased by tax recover- includes £4JJrn v m. toe . consumer shares has been - taken up as - to 
able of £360.000. •' credit division which continues to ' 90.78 per cent The balance of 

Under the terms of the reorganl- perform well jThis profit com- 330,811 new ordinary shares has 
Ration . scheme approved on pares with: £8m -ta- toe year to been sold and the excess of LL55p 
December, 1973, and consequent October SL 1977. in which period over the subscription price wifi 
upon these results, interest now a loss of. £4J87m' was shown for be distributed among . original 
qualifies for payment -to the sup- the groyp- ‘ .allottees. 


- extraordinary items 

726,146 

109,941 

Taxation (See Note) 

63JI7 

5S36S 

Profit after Taxation 

62^29 . 

54376 

-Mftority Interests 

W19 

6375 

- _ - - . ’ 

54JJ10 . 

48301 

. Extraordinary items 

Profit attributable to members; 

1441 

899 

~ojF t|ie Bank,. 

52^69 

47,402 

- Dividends 

13,483 

11,974 

... Profit retained 

39386 

35,428 


77 


Earnings per share 

NOTE 

.78 Jp . 

693 p 


7978 

1977 

.'Taxation, comprises:- ........ 

United-Kingdom Corporation Tax 

£000 

£000 

less double taxation relief 

213*67 

21.136 

Overseas Taxation- . 

41350 

34329 

• * ' .' /- ; •• 

- <3317 

55365 

DIVIDEND 


• 1 


Principal members of the Group 
Steel Stampings Commercialvehidewheels 
and heavy pressings 
Drury Pressure vessels 


Drury 

Engineering 
Barlow & 
Chidfaw 
Musgrovefr 
Green 

Welders N.V. 
Midland Bright 
Drawn Steel 
A. E. Godrich 
&Son 
Hemmings 
M.C.L. Ei- 
Repetition 
The Castle 
Engineering Co 
(Nottingham) 


Gear cutting 

Tanks and cab bodies 

Specialised welding 
Bright bar 

Bright bar 
and wire 

Stainless steel wire 
Automatic turned parts 

Automatic turned parts 


Allspeeds 

Webtool 

Hydraulics 

James Raistrick 

8-Sons 

Andrew 

Denholm 

Machines 

Collette N.V. 

Auto 

Wrappers 

(Norwich) 

Ayers &- 

Grimshaw 

Purdy 

MachineryCo 

Drum 

Closures 


Variable speed drives 

Industrial hydraulic 
jacks 

Iron castings 

Bakery ovens 

Mixing equipmentand 
gear cutter sharpening 
machines 
Wrapping and 
packaging machines 

Parcelling machinery 

Labelling and filling 
machines 

□rum closing rings 


Copies of the report and accounts 
are available from the Secretary 


GEI International Ltd* West Street, 
Dunstable, Bedfordshire, LUG IT A. 


WATER £ 2 M, 

East Anglia .Water Company 


HESTAIR 

Hestalr’s rights . issue , of 3.6m 


-■ The Directors will recommend to shareholders at the Annual 
'' General Meeting to be held on the lOrh August, 1976. the payment 
■of a final dividend. Inclusive of related tax credit, of 17.5767 pence 

• per share, the. maxi mum permissible under Counter Inflation 
Regulations. At the current rate of Advance Corporation Tax 

* the amount payable to shareholders would be 11.6006 pence per 
share and this would be paid on .lSch August. 1978. to shareholders 
on the Register at the dose. of business on 2l'st July, 1978, If 

: the rate of- Advance Corporation Tax for 1978/79 is reduced a 
further . amount In respect of. such tax adjustment mil be oald 
: oh 26th January. 1979, to shareholders on the Register at toe 
dose of business bn 22nd December. 1978. 

L. R. BISHOP t 
Secretary/ 


! The^ 

K^eafea^redFeoMcgiCi nTi 



TStepbciie£Br 6 g & 5806 








Financial Times Wednesday June 28 1978 


29 


ms 

V.: * r i 
:-.*£■ 

■)'" r *,' 
:■ - ' 


SGB 
an d sees 
good 


■-:. U * 
tv 

:?& 


-.r a 

l - dji. • 
- .• 


• :: — ... 


ik>; 


iapiChs t *“ 


;„-r 


Renwick back to dividend Sears off to 


after doubling to £lm 


good start 


Tax and interest erode 
BAT earnings 


AFTER TOtPPES’G rbe -previous 
full year’s, result .by £9.000 at half- 
way. pre-tax profit of Ren wick 
Group ended the .April 1.. 1978 
year -ahead Cram £0.47m to £1.04ra. 
The group is return Lu: 40 itoe 


may be approaching break-even 
BAAon urcnkiee following reorganisation last year. 
QUHKU mCitllnua Meanwhile with the return to the 
Tfac follow ine companies mw wMifled dividend lists widely expected the 
dairs of Board meeting to the stock shares remained unchanged at 
Exchange, such micnnas *»• anally 45 p where the yield is 3-4 per cent 

~ purposes of conaVJenng - - 


itttad iise with a Is net pay- and the P/e 5. 

raent. avaJublc whether dividend* cooeenW 

Dividends totalling l.i&p net arc lutnna or finals and the sub- 
per 25p share were list paid in oivisjons sium-n below are baaed mainly 
1974-75 when an £81.000 loss was °“ IaM ycars umElahte - 

incurred. The following year j . . 1 2S? r m , i aM i r.n.m 

resulted in a £0.«5m loss before JSTTSSL ”2Fi&E 

the recovery last year. m and c Dual Trust, Norfolk casual. 

Mr.. C. W. WJtUm. the chair- 9l SLSS!L. r *m^m^ BPB 

maxiv says tbe^expenence so far indusmefl. Chubb. Eiecnueompooms. 
mis year indicates that the Gresham House Estate. Ricking Pentecost, 
recovery of the group is con- UK Electric. Sooth Crnfty. 
turning. FUTURE DATES 

Turnover lor the year was . ■ 

£45. 61m (£38.41m) and 'tax was Secnrtd “ — ■ ' jui» 19 iuuubcc;, uic sj«iw «r««6 

£114,000 (£38,000). jSw 6 carpet printing concern, with its 

There were extraordinary lasses Blackman and Conrad July 6 pre-tax JOSS increased irom 

of £0.film (£73.00 0>. -with write Bn-mnaii Beard J" 15 J £218.812 to £546L201 for the year 

offs of goodwill in the -freight S 0 ”?™) j'JS u to Mank 31, 1978. 

division accounting for £0.4S<n, SSb“^nMo«"::::::jiK “ w*- reporting « w*, 

wrtfc £0.4m of the freight share sl Andrew Trust .....julr 2® first-half loss of 1432.S76 

arising from the acquisition of winurhotiom Trust — ■--Jul y * f£162j81)» the directors said that 

the Nut-tall Group in 1973-74 bv „ ™***'-- ~ . in order to improve liquidity and 

the issue of Rcniwick shares at a S™!£!2i!S. ^S£ n .!? rs iS to enable the company to operate 

premium. SS£W™» » within resources, it was necessary 

The financial year of the tra-vei DibUitr* — — July J? to reduce substantially Us 

division has been changed from Dowiy - ■*"£ ”} manufacturing activities. 

an October lo a March end, and ebmm — J o* B This would entail drastic 

the previous year’s figures have Kfoin-E-z** - ...July 3 reduction in overhead caste which 

been adjusted, although this has London and Midland industrial* July a should stabilise the position so 

not materially affected results Pullman <R. a j.i ... July Z7 that advantage could be taken of 

TJie-frabbt dh-Osdon accounting K^ PunJ .V:.";:.' ^ * any improvement in demand 

policy on equalising leasing; costs uaik-d British Securities Trust .- ■■■ July n These measures were completed 

has been discontinued with all wood <6. w.i JuhrU by the year-end and the full 

niitetanrfinjr balances written off. benefits resulting therefrom are 

H lie former policy had con- now being felt, they now report. 

Guvued directors say there would tp just over 1:1. Net liabilities Tuuroover for the yuf jiu 
h ^ befo _i -£55.000 charge havebeen halved and the group Sr^D^staare 

(£28.000 credit) for leasing has taken the opportunity to Pf£ n ?* p f 

equalisataou. 1976-77 figures have reduce goodwill by £475#)0 t0 L n ^JSend Ls' 2 ?o < te paid-tiie 
been restated to accordance with under £ltn. »i™«T W tnt n li2S iiuamn 

ED^-. - ■ The trading improvement has foresoS of *lSti?7S 1S4863 P 

Earnings per share after tax are been ] ed by the manufacturing was struck after 

Shown at 13.1p (4£p) basic and division where profits before j„ nPP< .| a *c on Q r wa s 817 (£185 116) 
8.7p (4^» fidar dttuted. interest are up around £700,000 at ?gS?5?B S t£x«St of JwJfflS 

■“Wff Him. This was thank^to a {S^fl0?) lLS5g neTloss up frem 
Ti.nii.,1 r sterling performance by. the boat , 4 g t0 £271^05. before an 

Prune bafura tax ijkC U7D building side which more than off- item if £23.220. 

36 set a small loss on caravans. Boats 
*34 may be harder to sell m the 
current but there are signs that 
m the caravan business is signm- 
— cantly increasing market share 
m aided by the launch of ten new 
models. Continued progress from 
manufacturing and reduced losses 

_ _ from freight are the key to further 

Renwfck is clearly on the road to recovery in the current year. Last 
recovery. Pre-tax profits are year freight losses doubled to 
more than doubled while the £?m but half of this was due to 
balance sheet has also improved, closure costs against we mter- 
Genring has dropped from a ratio national forwarding division. In 
of 2:1 against shareholders funds the current half the freight side 


y 



£0.55m loss 
by Caird 
Dundee 

A SECOND-HALF deficit Of 
£113,325 against £55.931 left Caird 
(Dundee), the space dyeing and 


THE CURRENT YEAR had started 
very well in must of Sears Hold- 
ings retail activities, particularly 
for footwear and Mis^ Solfridgc. 
There were still problems in cer- 
tain engineering businesses, but 
all being well this division was 
aiming at becaminu profitable 
this year. 

This was stated by the chair- 
man, Mr. Leonard Salner, at the 
annual meeting. On the overall 
prospects, he said. “ 1 am con- 
fident that we shall improve on 
the results of the previous year.” 

Referring to the Price Commis- 
sion Report, he said the recom- 
mendation that footwear multiples 
should cut gross profit margins 
would mean for Soars a cut of 
just over 1 per cent. “ We have 
accepted the recommendations in 
principle and are now working on 
the best means of achieving them 
to the advantage of the general 
public and to ourselves by obtain- 
ing Increased overall profits front 
a higher turnover, which we are 
confident we will obtain." 


Slow start 
bv Guthrie 


Several key companies in the 
Guthrie Corporation have got off 
to a slow start in the current year 
and while profits for the whole 
of 1978 may not match :he record 
levels Of 1977 Sir Eric Criffilh- 
.loncs. the chairman, says that 
present indications arc that they 
will be satisfactory. 

He explains that the below 
average oil-palm crop which 
affected the final quarter of l&n 
continued in the first quarter of 
1978; conditions in the UK carpet 
industry have not improved 
greatly: and North America has 
also had a sluggish first quarter. 
However, the chairman reports 
that there are signs of improve- 
ment in most sectors. 


In 1977 group pre-tax profit 
expanded from £1 3.27m to 
£19.6Sm. Kumpulan Guthrie and 
Guthrie Ropel showed excep- 
tionally good results. Operating 
profits from the plantation 
interests increased from £llHra 
to XlO.lm. 

Crop levels were h:-.*h for the 
first nine months of the year but 
thev dropped avay in the la*it 
quarter. The market for rubber 
remained very stable throughout 
the year, and although palm oil 
prices fell in the second half they 
proved less volatile than bad 
been expected. 

The chairman says that a 
further substantial write-down in 
respect of slow-moving stock and 
doubtful debts of Guthrie 
Engineering (Malaysia) and 
Guthrie Trading (Malaysia) has 
hid to be made and he is 
satisfied that the provisions are 
now adequate. 

At the year end there was a 
decrease in bank advances of 
n l.55m (£10.8lm increase). Bank 
advances stood at £23.05 rn 
f£34_S9mt and cash. etc., amounted 
to £7.89m f£7.0Hm». 

During the year an ex gratia 
award of £B4.0(Ki was node to a 
director on his retirement from 
executive office. 

Meeting. 20. .Vdcrmanbury, 
E.C.. July 19. at noon. 

Equity Consort 

After tux of £ 1. 13.408 against 
£135,805. revenue of Equity Con- 
sort Investment Trust expanded 
from £24D,37tt iii £281,253 for The 
year to April 30. 1978. 

A final of 4.7 j>3p net lifts the 
total payment from .l.Blp to 
d.765p per £1 ordinary share and 
the dividend per 50p deferred 
share is stepped up to 5.61 p 
(3.9Gp) — the directors intend to 
take account of any reduction in 
the rate of ACT. 


MAINLY REFLECTING heavier 
interest and tax. net earnings of 
BAT Industries for 1977-78 are 
expected to fall slightly short of 
the £2 10m achieved In the 
previous year 

In the six months ended March 
31. 1978. group operating profit 
showed an increase of 4 per cent 
to £252m. but after interest and 
tax the attributable balance comes 
through lower at £101m against 
£106m. 

The directors state that the 
improved operating result arises 
through maintenance of good 
results in the tobacco division, 
better performance in U.S. retail- 
ing interests and in the cosmetics 
division, offsetting a reduction in 
paper profits in the face of low 
growth in world trade. 

In the second half sales of 
tobacco products are expected to 
increase at the same rate as in 
the first sis months but the 
directors explain that operating 
profit will be adversely affected in 
Europe by higher costs and in 
the U.K. by domestic launch 
expenses and lower profitability 
in exports, so that for the year 
as a whole profits are expected 
to show a mall increase. 

Despite the effect of competition 
on Internationa! Stores better 
£T055 margins nt Gimbels and Saks 
'should to higher operating 
profits fur the re! ail division. The 
acquisition of Alliance wholesale 
grocers in the L'lC this month will 
strengthen considerably the cash 
and carry business o£ Kearleyand 
Tonge 

In the paper division, the 
existing business is expected to 
repeat the results or the first half 
year to give a small improvement 
over the year as a whole, despite 
some plants running well below 
capacity. 

The proposed acquisition of the 
Appleton paper division of NCR 
in the U.S„ announced last month, 
is expected to be completed 
shortly and this should bring 
some benefit, net of Interest 


charges, in the last quarter 

The cosmetics division expects 
to be able to maintain the profit 
improvement achieved through to 
the year-end. 

In summary, and subject to 
exchange rate movements, the 
directors expect that the operating 
profit overall for the. year will 
show a rate of increase 
comparable to that achieved in 
the first half but that this will he 
eroded by Increased interest and 
by higher lax. 

A second interim dividend of 
5. 0p is declared taking the total 
to date up to D.4p against 7.5p. 
The directors point cut that the 
Increase is within present 
legislation but if dividend 
limitation is maintained then the 
final may have to he restricted. 
For 1976-77 a total of ]3.01p was 
paid. 

Commenting on the tobacco 
division the directors stare that 
cigarette saTes volume increased 
at' a greater rate than in the pre- 
vious year. In the US., domestic 
sales and profits declined mar- 
ginally. but were partially offset 
bv imoroved results from exports. 

"in Europe. Germany increased 
its domestic and export volumes, 
resulting in improved profits. In 
the rest of Europe, volume grew 
but profits suffered because price 
increases were insufficient to 
cover higher costs. Exports from 
the U.K. continued to progress 
but profits were adversely 
affected by the influence of 
exchange rates on export prices 
and the initial introduction 
expenses 

In the U.S. sales in Saks stores 
Crew sub't antially. Gimbels 
hpnefited from the buoyant 
Christmas season, but poor 
weather in the spring adversely 
affected sales which are mar- 
ginally down. Overall, there was 
an improvement in profits. 

Tn the U.K.. action taken by 
International Stores to maintain 
sales volume and market share 
has been successful but at the 


expense of trading profit _ln the 
short term. The decline in 
trading profit has been offset by 
property profits realised in the 
course of the stores redevelopment 
programme. 

On the paper side the overall 
volume of Wiggins Teape sales 
has shown little increase. Profits, 
though higher than in the half 
year ending September 30, 1977, 
have nor fully recovered from the 
more difficult market situation 
which developed in mid 1977. 

Mardon Packaging experienced 
slightly less buoyant trading con- 
ditions In the first half but. due 
in part to the purchase in the 
UIC. of the Cundell packaging 
group sales increased over the 
corresponding period of last year 
by 16 per cent to H5Sm with a 
comparable improvement In 
profits. 

The amount to be retained for 
inflation out of net profit attribut- 
able 1o BAT Industries for the 
half year is estimated at £32m 
(£26m). 

Taxation in the half year com- 
prises: UK tax on income £7m 
(£17m); unrelieved ACT £2m 
(nil): overspill relief nil (debit 
£lm): overseas tax £7Sm (£65m); 
deferred tax £21m (£16m). 

Lower UK profits have led to 
a reduction in the UK tax charge 
offset to some extent by an 
increase in tax on dividends 
received from overseas. UK profits 
were insufficient to absorb the 
whole of ACT so that was 

unrelieved. 

Overseas and deferred tax has 
increased, partly in line with 
profits but also because in the 
previous period the tax charge 
was unusually low for various 
reasons but mainly a change in 
method of capitalising reserves in 
Germany. Full provision has been 
made for deferred tax on the same 
basis as hitherto. In the light of 
ED 19. this practice is being 
reviewed and any change will be 
made at the year end. 

See Lex 


/ 


Tax 

Net profit - 

Extraordinary charges — 

To minorities 

Pref. dividends 

OnL dividends 

To reserves — 

t Adjusted tor ED19 

comment 


ii+ 

938 

US 

109 

1*2 

ss 

.54 


SGB 


SGB GROUP LIMITED 


INTERIM REPORT V. 

The unaudited Group profit before tax for the half year amounted 
to £4.432.000 compared with £3,503,000 for the same period lat 
year. Turnover. was £42.8 m aimpared with £375m fast year, ... 

The directors have announced an interim dividend of 2.75p per 
share which will be paid in fuM on . 21st September/ 1978. to 
shareholders on the register on 24th August, 1978. 

This compares with, an interim dividend of -2Jp per share paid 
list year, and Tr-^he maximum increase allowed ..under present 
Go'yemme'nt restrictions. 

The recent trend of Increasing profits at home and declining profit 
abroad has continued during the first half of -this year although 
there has been- an - improvement in some -overseas companies, 
particularly Holland 

The second half has started well and another good year is in 
prospect. 

N. L Oifford-Jones, 

Chairman.- ; 

GROUP EARNINGS 


Turnover 

Group profit before Interest 
and taxation 
Interest and Dividends 


Interest Charges 

Profit before taxation 
Taxation, on profits'. 
Current 
Deferred 


Profit after taxation 
Minority interests 


.interim Dividend 
Pence per.share 
-Earnings per share 
. Basic 

J’ Fully diluted 


Half Year ' 
to March 
-1978 
£*000 

42£31 

Half Year 
to March 

1977 . 

£■000 

37.537 

Year to 
Sept. 
1977 

cooo 

79,736 

5,133 

26 


4.419 

** 

9836 

164 

5.159 

'727 


4.443 

940 

10.000 

1.753 

4,432. 


3J5Q3 

8.247 

1.497 

875 


1.499 

306 


1,685 

2-314 

2372 


1,805 

3.999 

2.060 

44 


1,698 

51 

4.248 

137 

2J016 


1.647 

4.111 

596 
2.75 p 


518 

2Jp 

1,088, 

5254p 


9J7p 

9-1P 


7.9p 

7Jp 


19.9o 
18. ip 


BardonHill 



ANNUAL RESULTS 


Year to 31 March . • 

Safes - : 

Profit before Tax; : V / . 
Profit after Tax - - - 

Per Share-r Earnings 

Dividends Gross 
Net 


1978 
£000 
13,104 
1,204 
561 
l/ 18.4p 
12. Op 
7JJp 


1977* 

£000 

10,492 

977. 

405 

13.7p 

4.0p 

2.6p 


* Adjusted to reflect group consoli dation. 

Points from the statement by the 

Chairman, Mr. i).G. Tom 

, Recordyear for Group.Prof its excaecf forecast 

made at timeof going public. ^ . . 

i All main divisioos - contributed to 23.2% in- 
crease in pre-tax profits. . ' 

l current year has started Well, Further increase 



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Britain’s top 50 companies carry the American Express 
Company Card *. It is a matter of good business sense . 

Whether travelling on business at home or abroad, 
the Card allows key executives to operate more 
efficiently on your company's behalf. 

Worldwide acceptance 

They can settle bills at thousands of fine 
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simply and in style. 

Unhampered by qqy specific pre-set spending 
limits, and backed by your company's own good name, 
executives. can hire cars without a deposit, purchase 
airline tickets and « ven cash personal sterling cheques 
in an emergency. 

The American Express Company Card is such a 
sophisticated alternative to cash, with its worldwide 
recognition and acceptance., that executives can even 
meet unplanned expenses, such as last-minute 
changes in travel arrangements or the impromptu 
client lunch. 


administration for company and executive alike; an 
exclusive choice of billing arra n g eme nts, and the 
facility to settle monthly charges with a single cheque. 

The American Express Company Card Plan is 
already helping m any top compan ies and their 
•executives. It can help your company just as well. 

Simply write to R. A. Harris, Manager, Company 
Cards, American Express Company, 19 Berners 
Street, London W1P3DD, or call his office direct on 
01-6378600. 

American Express Cards 
for Companies 


‘Source;‘Thc Times’ 1000-1977. 


^ 

j To: R.A. Harris, Manager Company Cards, American | 

Express Company, 19 Berners Street, London WiP 3DD . 
I I should like to learn more about American Express Cards for I 

I Companies. Please contact me at the address below: 



Name 

iC-V^n Ui: PtE-teEj 

Position 


l tv for the 

JL ILAtJ WUA.VVW4VMW*'- J ^ 

executive is further enhanced by other tangible 
benefits to the company. 

These include: a reduction in the amount of cash 
advances; areductioninthenumber andeost of foreign 
currency conversions; simplification of expenses 


Company 

Address— 




.Tel. No FT3 

lacwponlcd'rith'fiRMl^ EaMity la liet'JiA. JXQuartiry, Rcodent Vice President 













MINING NEWS 


S. Africa’s advancing 
mineral exports 


Wm. Press set 
for expansion 


• Financial llin^ Wediiesday Jnn§ 28 197? 

NEWS DIRECTIVE 


BY KENNETH MARSTON. MINING EDITOR ducts offered, «DI enable the spread over W^era^na. 

DESPITE THE depression In ductive employment of labour logical surveys are carried out. minStere ^gtre^theix SSj^JSSSlf^ ShjSf^lMgSy 

eft? -as MSiai » vest* ‘HUrjisr ft ^ m SSESS? ss SLrssaa ai*» js-» £■&«* 5X? SlSSSS? ItfTS- SfS 0£ C0 T ny 


1U1 CAUaUSlUU . BY MICHAEL lAJf'fiKTY ; . 

. ..“aSSf* MSrSt 

THE CONTINUING development then it should be possible for fourth com p any law directore. all companies. - by legislating tor one Of to p 

of experience and technology of these to be met out of company a regulation which fa Intended what the UK regards m& tire- and I layouts. Ag»°., U woum oe 

William Press and Son, especially f un ds, without undue difficulty.” to go some way . towards’ mme detail is the very fabric possible to lay , , £ *f >wn lower 

in all, aspects of energy and- Group turnover rose from harmonising the content of com- coin n&a- uuv in a country limits— but not higher ones— 
related fields together with the £i5Sm to £l96m, an .increase of pany accounts throughout aeuermany where tradi- for die definitions of small, 

wide range of services and pro- 24 p ar cent which was well community. Negotiations on the. tinH -^iy jf somethin g is not in medium and large companies 

I duets offered, wp enable the spr eatT q verjnost operations. . proposal have' dragged on for ^ it fa itet dobeT Hence than those specified. 

5JW “ SS. ?£“£&,? fit ,tz M for each 




South Africa’s mineral sales of the minin g industry.” 
were boosted by higher gold 

prices last year and rose 23.1 per T\yff T irh ]1 ^111 
cent in value to a new record of 1V11- XJj 611 Will 

< S! 8 «?«S , rf,J5? s, £f nlnco linlncc wereVriSnaHy ^thnated*at~5bm "With the exception of certain support coats.' ■ mnntts aUowed for suca legists- ^e^ jiost haportant probably unitT of" account: " up to 50 em- 

a major role in the sharp im- ClUSC UUlCSS tonnes, there are signs they mechanical construction work in The balance-sheet reflects the tiou to take effect. - - j^the insertion of a jeqjjiroraenr nloyees 

n !J A J cooldbe as much as 200m tonnes, the Middle East, aU the groups Writer vafamc of turnover under- There can beno doubt text a^t accounts Brust“giVe a true Bfledltnn: Those with two of the 

Republics balance of payments fUflpfl TlirfilPr which would be fust under half markets are active.. _ .. . taken during the year, : wfth there fa a great need •smrt fair view” rather' than. u <h<w»t ratals 

and the economic recovery that of Brazil's current reserves. The group » perhaps fortunate debtor*, creditors and work to harmonise company taws wilftln TT Germany ' simolv comnlv ™ min- 
now appears to be taking shape. MOUNT LYELL MINING will close Nearly two thirds of the total that where downturns do occur It PTOgrros afl showing an increase . men indeed. It fa regiWted with the law ‘ Indeed* it : I* ^ rutw U ** 10 U o ta ,°I i m ■ 

In hfa preside ntialaddressto its copper operation in Tasmania Ses are to Mato Gram is so broadly based that they are over toe provlina raur* figures, 7T °** r unito 01 account * 

the ChambeTor Mines ofSouth i«leF « receives an assurance of 55T offset by improved condWona thedalnnan say*. 3* 1 5£ e &J 1 SL *Pto *» employees 

Africa vesterdav Mr L. W P continuing Government aid Brazil's consumption of man- elsewhere and the group has The ovaruD increase hi the use l^? 5 complianc e enth toelaw is not The size categories are fm- 
van den Bosch^added that "the faeyond _ June 3°- when ganese is about a third of entered lflf78 with a strong order ofm oneqr on these items, together en°aghdirectorgt yist t .d o what- portapt because companies falling 

current^ vearshould Sine a curr ® nt Cmimonwaalth Govern- iLiual domestic production of book, says Mr. Hawken. with thewment of last year's v5 ever , els * *2* ^withln them are Intended to get 

ment support is due to expire. 1.5m tonnes. Half of the balance For 1977, profits before tax rose tax HafiOHy of «m and net m ? °f a lengthy sary for the accounts to give tile exemptions from various dis- 

further expansion In earning This message was conveyed in tor eSort go«to tto uS!bS 30 per cent from f7 J9m to £$J30m addttiow to fixed assets of £4m, harmonisation measure s-, la -Afa necessary view. cto^reauirementslnthe case 

from mineral exports. He piloted a telegram to the Commonwealth the exports ©nmes from reserves despite the need for a further Iosb has caused some drop in cash field. So far only two directives- qn.- obvious -cltanee ns of small names for example 

to the higher prices Being Government stoned by Mr. Charles in AnJap-T ST idth^re proton of £L6m on the trans- balance* have, been . approved, the i*st gSSta Kerel L^hi 2emoti55 ft5S 

received for gold, uranium, Copeman, the Mount Lyell jxovr rnnutag out. mission side of the recently However, thk M is of a being the second which lays do*n *®^ h a A,® I 2rH? 

copper, diamonds and platinum, chairman, and published acquired James Scott, a sub- temporary nature and should be mini mi rm capital xeqairemepls ^^f n nfr^.rTrrnnr rb^ 1 ilfr ™.JL 

He also commented on the yesterday. stantail part of which has had to made good fafrtr rapidly since for nnhlic and nsrivaie coraottoies. their accounts, and loss, account, and permission 


jtMtrftfA Vn UBKU ww nvwra y ij D vw* igtlUWX _ 

oDUgea. ro po^Hnn Law- In fairness, the Small: Those with two of the 
Lftngesmzo Dv-:fTn>i TMgntiiitnN him iirHIiiVMf KbUtim eWt ffttals 


Although the Urn cum reserves resultt. 
were originally estimated at 90m with 
tonnes, there are signs they mechan 
could be as much as 200m tonnes, the Mic 


under recovery of overheads «"rf [ year* 


British negotiators have achieved following— balance sheet totals 
f IS significant amendments to the up t' 0 lm units of account 

JPBJJ. draft yrhlti* ha* now T»een (£670.0001; turnover up to 2ra 


months atiowedfor such letfaa- account; UP to 50 em- 

tion to take effect. , - • j. js the insexfton of trequiremeat nloyees. 


Africa yesterday Mr. L. W. P. « a Brsza's consumption of man- eisewnere^na me e 

van den Bosch added that the > when sa nese “ about a third of entered .1978 with a.stzr 

current vear should bring a ^?- vern_ annual domestic production of fawk, says Mr. Hawken. 


steady expansion in coal exports The company's Board ’intends to \fo()qnT9c1fQ onH 
and the start of exports of rutile, <a u . » meeting, on June SO. at iVlallaVV dMkd dllU 


and the start of exports of rutile, «u ■ meeung on June au at xtauum. v« 
zircon, titanium slag and iron winch a resolution will be put to a ■ i 

tSS th?S!w port or Richards <*°°* telepraM WJIS AglD Settle 

Bay. Coal is being shipped from --SmoStod^v S" • 

the port at a rate of 12m tonnes £ Neil Batt,* pOCe TOW 

a year and in 15 months time Deputy Premier. This said that ,, AT ^ s „ r . CT1AA 


S^paS^Twt^h^ha^ 5S!ra“S&%{S U 3oS JS® JfflLSSSSK their account* and .and penninslon 

be charged against earnings for tax_ defmncnt on thfa year’s and P reQu^S P each company^ P««*ribea , two to publish only a brief balance 

the year. profits win result in a relatively ^ bi^eare whofeer*^fa balance sheet layouts — one hori- sheet The principal exemption 

The total dividend is 0£375p tow tax payment, in 1978, thus nuhllr- nr nrivate Odrilveneueh: «jm al b» the old left and right for mediums tied cotapanios 

(0.75P equivalent). The large givtag a good cash flow. ftrirain i« *irMdv band srtyle^ ^and one verHctd, and would be exemption from publish- 

cover of the dividend coupled The^group’s entry into the JbiJSSoiLf w imntemSS ttfa four formats tor the income state- ing turnover figures, and the 

with substantial cadi balances- wffl h^kup, ^r^adoning obfrggoas w hnpiemmtgte mt; Aputf „ m ^heoptibn of right to publish a slightly abb re- 
enable consideration _ of hlgter and_ mamtenanoe market caused «recuve t .tnougn legiSTOO vertic ,i or hori xnnt B ] vtatert h»i a n». »h 


cent in the past four years: “ The JFETSSl' 'SS\uSUSi STpST-S «?--*» ^ 

consequence has been that over of own u p “£ a Stiti“ an escalation dause for nett year they aro n^ble*^ 

this period the increase in work- (£1JMm) . 9 based, on the movement . of opiiion aTtothe 

mg costs has neutralised the So far the Commonwealth C^natlxa^Iabour commodity ^ UabifiS, tf 

benefit of the higher gold price. Government has provided Mount which may arise, although *we 

For many gold mines, however. Lyofi with a gross A*4Bm of aid month. The prlce isrobject }m no present iniocmztiou 
there has also been a rising in accordance with Interim ™ 8 f P® 7 <xm commercial wou |d i p^ uS to disagree 

revenue from sales of uranium, recommendations from the „ , J t with the view of the company.” 

On the basis of present uranium Industries Assistance Commission. The directors say in a note to 

prices, new business concluded The period covered by this aid w^^da^ta fOT thepnndw^ ^ accounts ^ n0 nnpaid 


TYwi$>V*C Italy and Luxembourg ’'art 

-*■ 3 countries where company laws 

will still have to alter atgnift 

comnanv cantly as a result of it tieitt 

“ J approved. The impact on the VK 

will not be so important asir 

meetings these countries. ,T: 

Bank and CommeraaL Great rf . Th ® ^ain jffiange wiirbe^ 
Nmten HoteL N^ IL BoSer the introduction into UK 


bv South 6 Africa’s ntines during innToff SS of v ite^k ^ lb ° f uranlumcodde, but “J iTSdmitt^ by H^t^NTiL *e Introduction into UK com, 

?hp oast of^hp^rde? Of 8 "d t he Commonwealth Govern- *5. 8 “ onnt cohered ^ by toe pre- Smpany 2d t tf-J a view was to be Breweries, Wraham. 12. British Panyjaw of^a peat dad of <h ^ M j52 e "J'!l fc 52? hr Mn * ta “’ Btovta « rcMrltel » “»« tma 

RUbn and the canacitv of the ment ' waiting for a definitiv e AIC »nt price agreement is about 15m Qf now thought to Home Stores, 129-137, Marylebone presjcriptive detail about Srt^MB» , tewrti”iM , '‘^cr" 'finanedtoi* 

uranium nrnducinu industry “will ^P 01 ^ on the copper industry, ■ - pd^wi*li»H he under review, the overall cost Road, N.W, LL30. Central and shall be m company accounts, fixs-d ands uid or srcnrtUeo fonUna part of ibe current asam 

U!!?.™ p t n uSSL» d Sv in^Si has not Y»t made clear its policy would seem unlikely to exceed Sheerwood, Hyde Park Hotel, But the total sum of additional interwy anostmiur duxsss. iftowOtt t««r»teiy umk concerning aeoiited 

t0 + ,L leV o e towards Mount Lyell. to Canberra J® ,"“™ £2m. . S.W„ laTbrowtfaer (John), HnS information which - UK com- T -■ , , - - - 

substantially higher than at it is expected that some statement {SSS^SSS* ft! Mr. Hawken tells shareholders dersflaW, 12. De Vere Hoteisand panics will be required to T “ “ pro * lfJ8lM •*. af oMam * ctMriM — r 

present. will be made in the next few days. ™ that to the best of the knowledge Restaurants, Connaught Rooms, publish “will not be all -that Profit or Lost og onunrx kxwMm aftw ux . .1 . 

Mr. van den Bosch criticised Gold Fields’ attitude towards SL „ ot the company, the investigation W.CL : 12. Feeder, Burstwidfc, great" according to Mr. Tom ExmwrtUnsrr oaroiwn ....... 

tbe tar surcharge payable by Mount Lyell, which had an £ Sf mainly relate to the use Nm3i HnmbeS^ 6. Chtsom toT Price Watei^S gsm.d rttosry dwn« 

gold and diamond mines which one rating lossin the year to June H!2S^n*i®^SiTiS n %ii5 of certain labour ordy sub- (W. -and J.), rapperfaolme,^^!- narSr who advk«t the^ uSEr? 


^r c cfnt”M te as A gg SSfS fSTSWTS 

South Af?ica®s sate tS. gS°J ^'anSSSJ 11 P1 “ “ * ^Iter aSd^r (te.dte?S “• not sdmitte 4. lMon - iri-ndon Wd). HC, MO. 

i- -i — — k- a — j 1351 aomiai repon. ducer. and Tennessee Valley 


of Trade oct companKJaw otner «»*» D0, 8O « ro “w 
s. He forecasts, hMraw. or hw for Uproar., 
implementotlon qS - ^he 


which is due to be introduced A further threat of elmure is uucer, ana icnnessee vauey 
next . month, will affect a sub- thereto taT D^S iS Jg'JgJL***" * Pmtl 

stantial proportion of mine uncertain future. Mount Lyell Pqgnd tor 1979 delive ry. _ „ I I Oil 

Stores. has shared in the recent firmness . A * v lf 

Productivity at the gold mines of Australian mining stocks on 
has declined in recent years the markets and yesterday its 5J ® ™ TYini^i 

w** not being helped price was unchanged at SOp. S^iSSSrt^rWte^TwllS DIO V I 

white nnners shorter r-yup CTCPC TTU in. He recommended UEBSO^O 

11-shift fortnight. There is also CVKD STEPS UP a pound, but thfa was not FROM GROSS 


by the white miners’ shorter 
U-shift fortnight. There is also 
a chronic shortage of competent 
miners in the Industry generally 
and Mr. van den Bosch echoes 
other mining spokesmen in call- 
ing for more advancement of 
African labour. 


Property Holding 
moves to £2m 


BIDS AND DEALS; 


rVDTl CTCPC TTT* in. -He recommended U.S.830.50 -4- 

L T IV U alcra tr a pound, but thfa was not FROM GROSS revenue q£ £2B3m . Kaminga per ^are are given at 

UiflDV nVfTDTlfTTM acceptable to the Atomic Energy compared with#; JE2Jtn. taxable 8p (6B7p) and a final dividend of 
mmJk Ull URUtUm Board. • .' - ’ revmue of Prt|»K5KHi«g and £4.037p rod lifts the total fbr the 

NfAlVnANPCF Aglp contested the Board's Investment advanced from £L77m year from 5208p to 6JB7p. 

JT1A1 . . power to supervise the price and to £2m in the Mazrii 3L 1978 yean xarr-a rats-n 

This - year Companhia Vale do took the case to the Federal Court After tax of £L0Sm r££L93m) net r-.n , ^ J5“ _®2 

W® ex ^ 5 “ A° of Appeal, whirii ruled against it re^SSe^cmeS atSmm SSr^S&SfTLZ *w! 



oadstonc agrees £6.6m 


Real progress on .the part of «toct .mm Itonne* man- tea t«A Y^jpw- \(SQJ8Sm) 


Government and trades anions in 
the removal of racial barriers to 


ganese ore from the Urucum ment is apparently a consequence 

reserves in the Brazilian state of thfa ruling. 

of Mato Grosso, compared with Madawaska started, producing 


ae out at £0-97m pro p e rty o utmims 
directors expect that ofa tnoome 


amnlnvmant ctill h-,o *n ka tent u * «iui aitflLUU. pxwiui 

employment stall has to betrans- ^qqq tonnes m 1977, writes uranium at Bancroft izr 1976. 


to the next-few yean net revenue . 

win rixow average annual growth A^^haanpa exp mu ^ 
of more than 10 per cent before Rtwm wm tn 


Ml I • . »^vla 

aoo : • • : . • • — * 

Cement RoaifatoiM 
2! group, has lifted Jt* 
«S acqufaitidits. to- oVe» 
ns past fortnight ,wttb x 
3S4 mfint that it has *£P 


, . ’ . ,, . — : — mi.uuu lonnnt ui mi, wnm u ranium ac sancron nr is/tt. iti , , . ™»_ 

L a i!i '2? Jrt t* 5f*-.25 £5 ***** Smith from “■ . «• ?? « »* ^ **?* SSSSiSf ^SSSfto 8 ^ S ■== 


MS I (fff-to ) cash 


L the Irish subsidiary of Del Monte Foods are exneeted to hmj rcnonoo 

foendtog on ahd Scottish and Newcastle Mr S^ Wp^^TS, 

d2m in tiie Breweries. .^ Mr-Lnanes Henry and Mr. Rick 

ie announce- Ross Foods will carry on pra"S^X n * v the - reraalnl >VJ 

xd a *l22m duction at the Bellshffl plant, and 0181 businesses will 

Amcor ln&, continue to supply tbe fuH range ’HHE? “? “““Smg director and 
•* ~ »«Tfe fin ^ lciai director respectively. . 


Bosch warns: “It is dear that Janeiro, 
cost escalation in the absence The r 


Resources Corporation of Salt 


cost escalation in the absence The reserves are being worked Lake City and .49 per cent by , r T° 

of progressive relaxation of the on an experimental basis while Consolidated- Canadian Faraday to t°tai some £avm alter 

restrictions on the more pro- intensive geological and techno- of Toronto. - rax reuei. .. 


Century Oils now ready 
to resume growth 

THE SETBACKS of the previous to continue to provide specialised expertise 
year have been overcome and supporting services. says. Re* 

Century Oils Group fa ready to On the waste oil collection and are being 


and exceptional repaint In the gStefiSSi 

coming two -years them are ISpe-ti mmVas 

expected to total some £0-7m after p rat awdewh 

tar relief. oro. aedods 

They also expect to continue 0 “** n » WMed «"*** - 
infcreasing dividends ■ by 10 per - . 
cent a year although the increases.. Twmtirnmf 
may not be ctwered by earnings JLldllVrUUli 
in the current year. The shortfall . ■ 

fa however ■ amply covered by eflAOTC intD 
revenue reserves of £L4m, they . 3UU TT 3 UAI|J 
say. 

An abbreviated balance sheet H*$iniTl(r 
shows properties and. investments ' - i-*«-aaAiag 
in amodate d property comp ani e s Incto dfag - tampuniry employ- 


ra . .up I m aterials conqfem* 


Angelw, .construction, of products, - The- marketing. 


sales and distribution activities „ c ‘5 u ”? n i ,n P ®. n ***e purchase. 


Eariler tWs rooirtit CR revealed will be integrated within the Mr - yy™ Stein, Ladbroke’s chair" 


that mate* an agreed existing Ross Foods framework. 

f5.ffin offer f6r 2 sod.W, Hender- 
son, the Aberdeen^rased builders n AT T iPADn 
merchants. The bitf has the back- UALLfrUKU 


merchants: The but has the bade- r . 

lng of the malbr diareholder, ACQUIRES PRECISION 

London and Northwn. which has - _ - 

a s4.6 per cent stake.- ENGINEER 


shows improvedbhSXd -!f JSffffSiissTi 

. | California and the agreed acqui- °f. Sl.?" 


man, said It marks Lad broke's 
entry Into another growing area 
of the • leisure and service 
industries. 

OLIVER RIX 
PROPERTY SALE TO - 
GEO. WHITEHOUSE ’ 


California and the ..amd acqui- pSwiJ ad Co Rrwni is sifr 0Uver ** George White- 
j2£5L« KJlfaa h^ingroZA S ng) announce 

wholly owned nSldiaiy contracts have been 

m SnSvfe Btowpacov Precision EngtoeeS ^ 


^ ous. emerges as a result or dj hodoui aeprwnanon or were completed during the year again there Is no dividend. The I ms proaocer of masonry blocks and its mbsidiMy before tax for have been n fa 

will be maintained m the current an incr ease xn the general level £228,000 and cost of sales of and are now, or will shortly be, group fa engaged in printing and I and Jow pressure, concrete pipra, to months endine June SO tionar invoern^ hv nn»n> Ramh 
year. of ir.dustr.al acUvit,. Further £21,000. offset by . £105.000 eear- iuomne urokudne. Hemline learned pnrtrtr prufltS of jS.S ^.“arS^to ^ 8 leSttS M^het Rte^^TtSd S 

f Tl 1 TT1 T fl A VPflr frfl flnt rtr\PI* xl iMnn HAA a _ n i - l nji ^ — ... _ _ _ waiu 


completion and a further . £100,000. the aUounertt of 250,000 11 pqr 
in cash fa payable to the vendor cent cumulative preference shores 
od or before September SO, 1979. of WMtebouse. 

Provided net profits of . Brown AU the new preference shares 
and' its subsidiary before tax for have been pieced: with tastitu- 


y®W- of industrial activity. Further £21,000^ offset by a £105,000 gear- income produc i n g . Remaining 

For all last year, pre-tax profit f-apMhy increases are imeanwhfle ing adjtKtment ' development sites are valued 'at*.' 

declined from £12m to fl.l5m being delayed, although research At balance date, fixed assets £L7m. . w **• ” 

after a £02 1 m firsrt-half shortfall and development is continuing, were £5. 53m (£4. 53m) and net The directors are continuing to -. •TJfWYrld'C QllAitn 

Mr. Mitchell says that in the He says good progress fa being ca JT®f[5 assets ^3-63m(£229m). seek to improve the potential of lVFXlliy- uilC«U 

March 31. 1978, year the continued made developing overseas activi- Meeting,- Stoke-on-Trent, Jcdy 20, the group’s existing- portfolio— in ' _i. "r 
depressed level of industrial ties with particular attention being «t noon. both income and ."value -=- by al JutUpOlu 

u-tiirltv rMiltPil in 5) sbitip m.-irkp* irivm tn Fniinfriac with eiihctintrol . nmipi-to Invnlrfnff mwbraieatinn. r * 


depressed level of industrial ties with particular attention being 
activity resulted in a static market given to countries with substantial 
for lubricants and a surplus of mining activities and those con- 
basic lubricating oils and associ- cerned with improving industrial 
ated products. health and safety. 

The company gave priority to Directors expect to make fur- 
its traditional activities and con- ther investments as suitable 
centra ted on improving efficiency opportunities to back up the over- 
and containing costs. The policy seas activities arise, 
remains to develop business in Increased overseas efforts wUI 
the higher technology areas and benefit ' from the technological 


tog atgtmmei*. _ development sites ^ «b valued *:■ ” • (a2in) in theiehr.tQOctober 31, soo'.m ' ^ Se^be/lS sss^o *££ it intend S 

At balance date, fixed assets £L7m. . W ‘ ; „ " '■ • : 1977. on sales oT TlS^m f£102m>. TorT^MnsoIidfltoi rvT 

were p.53m (£*L53m) and net The directors are coatin nin g to _ Prnflfc SlflPStlT Nct tangible assets at that date Bm^h and. Its subsidiary ThLe nrmertl^ 
crurent assets £3.61 m (£229m). seek to improve the potential of L1UU15 fiHICfitU-. - were tS^m (XtRm). • * -Maomted to £48L48S sfterma- JB®, 

eroup’s existing' portfolio — fa a. -j | JJ Tbe .acquishian Is planned to vWHMfo? defei^’tS <5*126250. Wbtichouse 

«"«>>- » - at Leopold . &°m {tes ter l 

projects involving modeHusation r _ - r It was afaunanuOTnced yesterday and its subsidiary fbr the year SSlrJ5 jj .* l ¥* ' 

vw j .. and m ajo r repairs,- TnCPIlfl that Rowe audrPl tman. Hurst- tnSeotember -30 1977 Seven <>f toe other properties. 

Bowater to Net current Us^Uties at balance . JO^pH Rcown on June J »|toouKht f or a S aS,04«. - - ' •' 

iiuTraici *■" date were £2. 04m <£UB2m) but Net profit, after all charges^ of dlsctetionaty . -H^^neat client • • • already teen soW by RIx to tdurd 

L director say quoted investments,' Leopold Joseph Holdings rose 2^80 CemehrRdadaone shares at?. tADBROKE another fa 

cancel branch ras h and short term deposits of from £806.415 to £668461 in the 81p. r : , : . negotiated and three wUI 

£3 i9m provide liquid resources year ended March 31, 1978. • ^ Ladbroke Group has- acquired continue to be leased by Whtte- 

rrorJcfrofinnc. ' more ^ adequate to . meet Attributable profit .was £550499 DEL^ -MCHVTR KITCHENS 7 ?JS^!55 k- i, ^ 

regisirauons property outgoings and .'the against £328427. Del; Monte Kitchens of Bells- *wMmg In, Chalwest (Holdings) The book value of the proper 

_ ° currently authorised capital A final dividend of 6.733p per ml (Glasgow), a manufacturer of arfd «*»■ operating partnership, ties now being sold was £510,000 

Bowater Corporation fa cancel- expenditure of some £3m, -after £1 share makes a total of 8B08p hfefa-quality frozen food entrees, Chabrest suppbes coin operated in the latest accounts of Rix as at 

ling all three of its. branch share taking into account- sales of flats compared with 7-8p previously, has agreed to sell. Its business to machines to major companies in September 30 1977 and their 

registrations — In Toronto, Mon- which are continuing, at a high. Earnings per share are stated at Ross Fdods with effect from July the brewing and catering indus- annual rental contributed £51,000 

traol Urtwn tTnaiiv ..J IamaI * qfidCn /QAAOw^ n — !1T - J! r hfllAm tov . Af tkf> Rir’ffl TtFPWfttfr nwiRto ' 


Property 

Holding 

& Investment Trust Limited 


treal and Hong Kong— and will level. 2Q.95p (20.09p). 

transfer shareholders on those 
registers to the centra] register. 

aSSSSSS Control Securities 

where Its shares are sold “over IN HIS FIRST statement as chair- interest rates with an- option to 
the counter.. man 0 f Control Securities; Mr. renew. So Car the greater part 


the conn ter." 


The company explained y ester- B. H. Van Doninck says that the of thfa facility fa unused. 


HIGHLIGHTS FROM THE STATEMENT OF 

THE CHAIRMAN, MR. ARTHUR JOHN, CBE., FCA. 

Year to 31st March. 1978 

H Revenue before taxation up by 
£227,000 to £2.0 million. 

■ Earnings per share 8.00p (1 977 
6.97p). 

■ Maximum permissible dividend of ■ 
6.537p per share, equivalent with tax 
credit to 9.905p. 

■ Total Reserves increased by 8.6Tp 
per share. 

■ Directors' Valuation of properties 
£54.2 million, £1 7.5 million above 
book value. 

■ Quoted investments, cash and short 
term deposits £3.9 million. 

■ Expectation that dividends will 
continue to increase by 1 0% per 
annum. 

Annual General Meeting Monday. S4th July. 1978 


day that the costs of maintaining 5 ew| 7 constituted board has pro- 
the branch registers was no longer ■ positive results sooner than 
warranted. There are believed to 11 •fared to hope. ; •“... - - 

be under 2,000 shareholders on ^ re P° rte <I on June 22. the 
all three. property group achieved a tra^a- 


JEST Th ® Board fa gmng- argent shares he does hot hold In- shares io-Nottheru Foods. its current plaits it would not be 

SSJTOi*?®? sooner tmn attention to remedy the loses of Warwick Euxtoeering favestmente. , >■- . . posrible to concentrate the Invest- 

K Tnlii 99 tKo their rputch snbsidlaries,_rittiOhgh YesteidayTTOhbOhril of Warwick .. JAS. SHIPSTONE ment and resources Into Converts, 

on , their im^rtence » mtohnal In anaounce^- that- it was having Acceptances of . the offer on a general colour printer. . . . 

SauSS^fbJE^ -relation to Mm total. ste of the talks/ With. .Sidney Securities behalf of GreenaB Whftfay to the 

cutoi hJTniS and toe faettfcatthere are “ wbiehi it -fa expected will lead ordinary holders of . James Ship- * T UP rntrr s. WTT CHlV 

fl n » Rni fa es ta **• -subsidiaries. ^ an.- offer being made for tbe fetone hare been received m respect AlhritSff 
£540.912 (SnoM) tur fa >vier of The group total portfolio fa m outstanding sfaares. rt . of 19,135,755 ordinary shares in P rfe?^Se 4?to 

v b« non excess of £2.1in and a professionai .Shareholdera _were * steady SWpstone. indudiror 14^08,604 new 552!. 


1, and will cease trading from tries. , Profits before tax- of the to Rtfe pretax profits in thaft 
that date. It is a jointly owned businesses for the current year year. 

Another attempt at Warwick 

It looks as ff Mr. Norman Gid- placed in assented . term with plastics companies being, or about 
ney fa about to make anotber institutional investors. Thfa hold- to be formed. It had been felt 
attempt to' mop vp the. remaining' ing. carries - the right to 5408,090 by the Board ^hat in the li g h t of 


Mill water ~MeisejT Mnia w^ iotsl iflSSJVM excess of £2.1ra anda professional Shareholder were *\ strongfa stdpstone. toduding44£08,604 new ha^ror* iLSS^Tr 

established. tS aSS jSS new lof^S valuation -oT UK -fiLMto invest- totake no. action over ordSaiy^iw in^hfatone to ; be SSkS optS 

quote dates from 1972 when were fasued^to lSSfund AG for of Warwirt ® r01 ? <wed four that Teimeeo’s bid for tife^conE 

Bowater took over Ralli Brothers. at a premium of 10n -per surplus .of £96,000 over hook The cha irman of. - Warwick -fa_ throne scrip issue. . - pany -will not be referred to the 

Now. rim ™ "T: S in aSSLriS .£ ^ Thfa representeacropten^sin ES s n g 0 ^ a S^ xlto 


Now, the 
ease in b 
nationally m 
unnecessary- 


unnecessaiy. Lao Canadian Anrvmoeiw il? , J an . constarrfiy chan gin g as saies ana am au. vwucj, wuu u«cu npez oners nave oeen receivea m ToA»,«i«nT 

•ss^s, sss nar.i: w x a r « « mm «*«- - ^ 

of 10 d each^ intS. 255? offices at Cardiff has contributed sb i 1 J es > w . J . have beep: declared unconditional ... . tCBI T — . T/ .„ __ 

... ® the company repr^ rtr a i miinjng 1 tha nnn'c Mr. GIdney made another offer.- an# wni Vamnin nnon- MANSELL. "THOTIPF. 


August 3L 


BET Omnibus 
turns in £6.6m 


gaafirta. ^r, Z**™ *™. m £ aj^Tss - mss *■“ next -?? g, StSFISj? tj ^ 

of the mineral industry’s rising Monutl^eU would have Sd SSKd f auditors * Qualified toe h^ uecrasteted addi ti ons an ^ hea^3!lt has already had !l“ we Ifi:JL? e ? ns .f le S Jf 


with its main provisions In mind. 

Italy and Luxembourg '’"sre M ' exampis or profit and loss layout 

STftm .S. 

will not 'be so important as Tn. other owvaniMjyccintM __ !Sc 

these countries. ■ ' EamlnB fro m partirilMK tiis toterats. femriiw sepimteir rhosc" Own 

th J h ^trod^rtin^^o V 5m b «^ E “ r S , 'S frwn tomM 'inf riro" 

the introduction into UR ccan- Axed nut, sttowun wmnaoly thon from asmatM mtertiiklnKi - ax 


The Canadian registers date to* st 4 m T, a, t cr -group anatn( e iai ermartnere are “ wtdchi it is expected wul lead ordinary holders of James Ship- AT RRIGHT A WTT CriTtf Mi' 

from the Imtedfate post wS Storch 110 gaarantEes to ^ subsidiaries, to^ an.’ offer betog made for toe *tone hSrc been received m respect lihSrht and 

-!e?rs when the CornertSSk and SSflU fSiuV The group toW .jtoUi tote - 2?. '+2" *5 priee^SS 4?to IBl' 


tenting 59B per cent of the total 
shares fn issue. aa 

In addition, Labofund AG has 


offices at Cardm nas conmMztea nave been : declared unco rum 

tn streamlining the group’s ™r. tiidney made another oner,- anirt wUI remain opeol 

administration. Contained in a to 1276, 26p a share, by which, i - 

programme of rationalisation of time he already h«dd 74 per cent CROFTON GROUP 


MANSELL THORPE 

Cenfrovfndal Estate is to make 
an agreed £230 .000 offer for the 


purchased f£m the company ^ Us **« snmpfa assets are many pres ^ nt ^ ^ake is 75 - CroWon Group announces that ordinary and toe 8 per cent 

E&e, Sd. hi® holding makes/ SMjiS^TOArnfc^ 6111 ^- shar ? a « 


. Bor toe year ended March 31, CaVdiffTfor w|n mo — meiibers are toM. mal 

l 9 ™* tureover of BET Omnibus At the ES°'te°Deeember the Expansion will come about W |^^ k to thc^d^arwfck’s «s> 
Serv lSr o J“ creas f d from £3l^5m Board decided on tore^maior through acquisitions, new J™JVtotoe bidWwwicVs er- 
to £33B6m and pre-tax profits objectives. To expand the capital deveiapments and fees _ earned oiviaend snare, price was Z7jp. 
b ‘^!f a f £6 ' 64m against of the gro^T rednee current from toe ) vntror padmc • 


shareholdixQgr'ln Converta was sold. Mansell Thorpe. . 
to Town 'and Country Holdings <t is offering 5p for eacb ortH- 
CBexIeyK a subsidiary of nary and 13Sp for each 8 per cork: 
piMIcfr quoted Corinthian Hold- preference. 


I £4. 94m previously. 


liabilities 


attendant ment management division. 


The group, with interests in a ^7. Io L s J er ?i 


plant hire. transnorL "rnininT borrowings at a low rate of mg. concludes '?2F um ? ' r 00 "* . roonm- TO .. nwnya worn, managing prices and Consumer Protection ( 

engineering! etc. fa ccmtrnai^kw interest. The chairman now feels and give much hope tor toe 2554,710 ordinary shares of Fnrk- .director. nf.Crorton .Group (which has decided not to refer the 
British EJMtric^TrarHnn^r^ fay th ^ e objectives have been future- We look forward with Farms existing prior to tiie toe -fa wtted^ by Capital. for Industry,' following proposed mergers to< 
M achleved - confidence, in sprtB of ar i scrip issue (842 per cent) and pArt qf toh Grtadlay Bank^ '.Group),, toe MonoooWand Merges 

banungs per ti snare for the Current linhP&Aa -ham been economic fjfrsrbos that’ fa still the nff(*r la now uneonditianal - . ststes that toe enmnnnv hne onh. nti«riAii* irmhini qv..: 


chairman, I Northern 


nnrtr/ togs which, already has substan- 

FORK FARMS . - tigl primlog interests including 

Acceptances received by *• printers, T, J. Hunt,. - 


-to '.' Mr. - Ben 
rk. director, of 


NO PROBES t » 

The Secretary ..of State for / 


managing prices - and Consumer Protection 

/ulklATt J I Jl J i x. _ m. .» 


not to refer the 


director, of Cnffton Group (which has decided 
fa iowned by Capital, for Industry,' following pi 


Z* 90 %^ /<?/.» - Current liabilities -have been economic situation that fa still the offer fa now unconditional. ' 

Teduced by profl table sales of Weak 'btit showtag. .definite signs The Samworth Family .in teres 
01 Property. The group now has, a of recovery”. have .accepted' . the cash ax 


W.--M * W".£5.{5r% srs 


Slavenburg’s 


the offer fa now unconditional. * states that. the company has sub- mission: Kearley and Tonga and 
The Samworth Family. interests stantially' increased ^ its- iftvMve- Alliance Wholesale Grocera; Pos; 
have .accepted' . the. ' cash and -.-ment -In the. PVC stationery .and Office Staff Superannuation Fun/ 

cltAllMM AffsH 3m ■nnnn At Jfed 1 ffljy AAA » ' MMJa - - ■ - ’ - *■ n >n . . UII 1 


of £lm with. Meeting. ‘Winchester House, -EC, I shares Offer In respect of 1,277^00 packagtog fields aver the- last -12- -through- Barclays 
at favourable on JnJy '17, at-:1245 pm. ■ . v»« ■■ .. ^ *> — * — 


shares and th^e • have ; beenMoontbs : With. . new? ' 's8«cfalfat n4cnt Trust Corporation. 






31 


r H 

s t 


Times TVetoesflay June 28 197* 



INTERNATIONAL I IN \\< 1 VI. AND' T'OiVfinNA 'NEWS 







NORTH AMERICAN NEWS 



Globe-Union agrees bid 


MILWAUKEE, June 27. 






1 U 


JOHNSON CONTROLS . and 
Globe-Union have reached an 
agreement to combine the two 
companies. 

The agreement involves a 
tender offer by Johnson for 
Globe-XJnion shares, followed by 
the merger of Globe into 
Johnson. 

Johnson Controls is notifying 
^Globe-Union of a 20 Day Notice 
*of intention to make a tender 
offer to commence on or about 
July 18. The tender would be 
for I.5m shares of Globe-Union 
at $40 a share. 

Earlier, Johnson had. acquired 
an option from UV Industries to 
• ~T purchase 1m shares of Globe- 
in: rUnioa common from that com- 
pany. Those shares and the 
- :1.5m to be tendered for by 
^Johnson Controls represent 
about 40 per cent of Globe- 
- -^Union’s outstanding stock. 


Johnson has to exercise its 
option to purchase the Globe 
shares from UV Industries 
immediately prior to a merger 
between Johnson and Globe- 
Union. 

After expiration of the tender 
offer the two companies said they 
plan to solicit proxies for 
special meetings of their share- 
holders expected to be beld in 
September to consider a merger 
of the two companies. 

Proposed terms of the merger 
call for Globe^Union < share- 
holders to receive the number of 
shares of Johnson Controls to 
be decided by dividing $40m,by 
the average of the high and/low 
prices of Johnson" common on 
the 10 consecutive' trading days 
ending with the third trading 
day prior to the meeting of 
Globe shareholders. 

AP-DJ 


Pacific Tel. tax threat 


NET' INCOME of Pacific Tele- 
phone and Telegraph for tbe 
second quarter ended May 31 
. .rose from 594An or 55 cents a 
c share to $9&2m or 56 cents a 
: : share, on revenues up from 
l$lbn to $Z.lbn. 

Mr. Gordon L. Hough, the 
'■chairman, said that an amount 
■of $260m, equal to 62 per cent 
. ’'-of . the company's earnings for 
=' -the past 12 months, could be fan 
"jeopardy because of an order 
last year by the California 
'Public Utilities Commission 
exposing the company to a poten- 
’-r.tial bill for back tax. • - 


NE WYORK, June 27. 

The order, which is now on 
appeal to tbe California Supreme 
Court, originally called for 
$206m in refunds due last 
December 31, and a further 
$60m in continuing annual rate 
reductions. This order prompted 
a ruling on June 8 from the 
Internal Revenue Service that if 
the Cotnmission’s decision goes 
into effect. Pacific Telephone 
would be ineligible for certain 
tax benefits. Unis could lift tbe 
eventual liability as high as 
$750m, Mr. Hough said. 
Agencies 


Int. Minerals optimistic 


LIBERTYVELLE, June 27. 


A STRONG jump in exports of 
^phosphate rock and potash 
thelped boost net income of 
International Minerals and 
^Chemicals almost 10 per cent in 
-tbe 1978 fiscal year ending June 
30, Mr. Richard A. Lenon, chair- 
juan and chief executive officer 
predicted yesterday. 


He added, however, that fiscal 
year 1979 earnings should be “ a 
stand-off or mildy down" com- 
pared with the year now ending 
largely because of low ammonia 
prices and oversupply. 

The 10 per cent earnings 
increase in fiscal 1978 will put 
net income at about $120m 


EUROBONDS 

Yields still out of line 


BY MARY CAMPBELL 


THE doHar sector of tbe market 
-continued downwards yesterday, 
1 with falls ol perhaps a quarter 
■on average being recorded over- 
. .. all: The six-month. Eurodollar 
rate has moved up a good eighth. 
- of a point since Friday, while 
a prime rate rise In tbe U.S. 
-■ Is expected ever more <*rafidentiy 

..for later this week. 

Some dealers also point out 
.-'that Eurobond market yields are 
• still out of line witb yankee 
.- bond market yields. - For 

• example one set of quotations 
-for the Norwegian five-year 

»■’ - issues put the yield . on the 
... ' yankee bond at over 9 per cent 
oh an AIBD basis, compared 
with about 8.80 on the Eurobond. 
Feeling in itt D-Mar* sector 

was mixed. The Bundesbank bad 

. to buy further substantial 

■ amounts of paper in the. German 

domestic market 

■ In Luxembourg, a placement 
af 18m units of accountis_under 

■ . way for the Autoroute Basque 
f .' * (from Bordeaux to SpmnlwMle 
another French 

• Renault, Is raising 

, - The unit of account °“ Gnn ® 
*bicb will be listed after com- 

Sn i cto 

3eiug managed by 
, Luxembourgeoise. ‘t 7 pc 
:r lent tot- 15 years (average life 
about 11- years)- There. lS no 

• indeiwittoror filing' 'group 

Offers 7Jper 

•&nt for' ton years- Yda a„ gruu? 

. |Usjaei#ti»' 4e 

... fTW -gaa-H 


currently under way m the 
D-mark sector are DM 20m for 
the Austrian industrial holding 

company (Oesterreichiscfce 

Industrieverwaltuugs — OEIAbj 

and DM 20m for the European 
Resettlement Fund. The former 
which is state-guaranteed *s 
being arranged by WestLB on 
a 5J per cent coupon at par for 
seven years, terms wbdeh the 
market thought were tight even 
by comparison with the Austrian 
state’s DM 100m placement, which 
offers a hardly generous coupon 
of 51 per .cent (admittedly for 
.a. ten year maturity). However 
the suggestion being made by 
some that the low coupon , is 
explained by tbe terms having 
been agreed a. few weeks ago, 
before tbe pause in new issues, 
would seem to be ill-toandea. 

The European Resettlement 
Fund placement, due to be 
signed an Freday.. offers 64 per 
cent for eight years (bullet) via 
SHF-Rank and looks generous by 

s&ttSt r&h s 

“S'JS-WlW 50 con- 
vertible for the Japanese super- 
market chain Izuaaiya are 
expected to Include >54 P er 
cent coupon on an eight-year 
final maturity. Lead m f»ager for 
this isroe, due for announcemenl 
in "the. second week of July, will 
be Bayerische Vereinsbank- 
. The Offshore - Mining SIMm 

-noatiDe^ate ksue closed y^ter- 

day" with- temw unchanged from 
. judications r- : the . price was set 
•at 'Jiar.’i ' 






in? may well be decisive. Both 
AGTL and Petro-Ganada are 
co-operating on northern explora- 
tions and on plans to extend the 
Trans-Canada Gas pipeline east 
of Montreal. 

Last night in Ottawa, the 
Prime Minister. Mr. Trudeau 
appeared to throw his w-eight 
towards Potro- Canada. Today in 
Calgary, the provincial Premier 
Mr. Peter Lougheed urged that 
bis Province's oil sands be 
developed further to help meet 
Canada's long-term plans for 
energy self-sufficiency. He did 
not menlion the heavy oil in 
south-west Saskatchewan which 
is largely controlled by Husky. 

AP-DJ reports from Calgary: 
AGTL declined to comment on 
whether tbe company would con- 
tinue purchasing Husky shares or 
what its intentions regarding 
Husky were. Oil industry sources 
earlier indicated that AGTL could 
enter the bid contest for Husky, 
Canada's largest producer of 


Heinz maintains growth Setback Alberta Gas Trunk Line 
with strong fourth quarter 


- BY JOHN WYLES 

H. J. HEINZ, the international 
food company has maintained its 
■strong growth record of the past 
few years with a 15 per cent in- 
crease in fourth quarter earnings 
and an 18.3 per cent rise in net 
profits for the 1977-78 fiscal vear. 

The results will help confirm 
Heinrs ranking among analysts 
as one of the most attractive in- 
vestments among UJ5. food com- 


panies. Earnings have increased 
for 15 consecutive years and at 
a 12.4 per cent compound rate 
between 1972 and 1977. However, 
the rate has been close to 20 per 
cent if rapidly increased market- 
ing expenditures and foreign 
currency translation adjustments 
are excluded. 

During the fiscal year, which 
ended on May 3, Heinz stepped 


Panama $300m loan to 
refinance external debt 


V BY JOSEPH MANN 

H WAS confirmed today that 
th e S3 0Qm credit package which 
a grou p of international banks 
. is currently putting together for 
.the Government of Panama will 
be used for refinancing part of 
the Republic’s external indebted- 
ness. 

Co-managers of the Eurodollar 
loan are Bank of America, Citi- 
bank and the Bank of Tokyo. 
JBank of America is acting as 
-Agent for the operation, which is 
.now being arranged by a 
syndicate of foreign banks. Tbe 
new loan will have a maturity of 
ten years, with a split interest 
. spread. For the first five years, 
the rate is to be If per cent 
over the London interbank 
offered rate (LIBOR) and 1* 
per cent tor the second five-year 
term. 

At year end 1977, tbe Govern- 
ment of Panama reported total 
public obligations of 91.78bn, of 
which $L28bn was externally 
funded debt Tbe Government, 
beaded by General Omar Tor- 
rijos, negotiated a medium term 
loan of $170m in January from 
another syndicate of banks led 


PANAMA CITY. June 27. 

by First Chicago Panama, SA_ 
The January loan was to be 
used for financing several public 
works projects and for funding 
other 1978 budgetary require- 
ments. It was a seven-year loan 
carrying a spread of If per 
cent over LIBOR. 

Under the Government's 
former debt repayment plan, 
debt service would have readied 
relatively high levels between 
1978 and 1980 ranging between 
5317m and 5362m per annum, 
with payments slimming down 
to 5294m in 1981 and sub- 
sequently lower figures in the 
following years. However, 
bankers here said that the high 
payments through 1980 would he 
eased considerably for the 
Government when the $S00m 
loan was applied to refinancing 
part of tbe overall debt pack- 
age. Proceeds of tbe loan 
specifically will be applied to 
the prepayment of six medium 
term credits contracted during 
1973-77 by Panama from Citi- 
corp International, Bank of 
Tokyo and Libra Bank/Singer 
Friedlander Ltd. 


NEW YORK, Juno 27. 

Up Its spending on marketing by 
44 per cent to 5120m, but tbe 
company denies that this is a 
direct response to an escalating 
marketing battle with Campbell 
Soup. Campbell apparently plans 
to challenge Heinz's leadership 
in the U.S. ketchup market. 

The fourth quarter results 
published today are broadly in 
line with indications Heinz gave 
two weeks ago. Net profits 
turned in at 536m (51.57 a share) 
compared to S3 1.3m ($1.34 a 
share) a year ago. For the full 
1 -ear, net earnings were 5992m 
($425 a share) compared to 
$83 Am ($3.55 a share). 

The company said that the 
full year results were after 
56.7m of foreign currency gains 
compared to losses a year ago 
of S10.2in. Moreover, tbe fourth 
quarter results included an after 
tax provision of $5.7m for 
“dosing and relocation of cer- 
tain foreign and domestic facili- 
ties.’* 

Heinz is confident that it will 
carry its earnings growth into 
a 16tli consecutive year and 
analysts generally expect its 
earnings to be helped by stable 
or declining commodity prices. 
Moreover its proposed $50m 
acquisition of Foodways National, 
a frozen food producer which, 
could, it is thought, boost earn- 
ings by up to 10 cents a share. 
Heinz is also seeking to acquire 
Weight Watchers International 
for $71m and is confident that 
both acquisitions will pass 
Department of Justice anti-trust 
scrutiny. 


m gaming 
stocks 

By Our Own Correspondent 

NEW YORK, June 27. 
GAMBLING STOCKS con- 
tinued their downward plunge 
today as investors tried to sal- 
vage some of the paper profit 
from their meteoric rise of the 
last two weeks. 

Leading the way was Resorts 
International which peaked at 
596 yesterday and had already 
lust over $30 to reach S75 by 
mid-day today. Other stocks 
linked with the new casino 
boom, such as Caesar’s World, 
Bally Manufacturing and 
Harrah’s followed suit, 
effectively ending the rush for 
gambling stocks which was 
sparked off by Resorts’ success- 
ful launch of its Atlantic City 
casino in May. 

However, analysts believe 
there may be further activity 
in these stocks later this >car 
as other companies progre>s 
with plans to open their own 
casinls in the resort. 

Meanwhile. Resorts Inter- 
national today announced plans 
to expand into the slot machine 
business by swapping 49,000 
shares for the Seeburg line of 
slot machines manufactured by 
Williams Electronics, a sub- 
sidiary of Xcor. However, if 
and when Williams gets a 
licence from the New Jersey 
Gaming Commission, the com- 
pany will acquire 50 per cent 
of Resorts’ slot machine 
operations in return for half 
of the shares it is receiving 
under today's deal. 


lifts stake in Husky Oil proposal 


BY ROBERT GIBBENS 

ALBERTA’S LARGEST gas 
transmission company. Alberta 
Gas Trhnk Line. (AG'ii.) beaded 
bv Mr. Robert Blair, is? back in 
the Husky Oil picture. AGTL 
confirmed that it has been buy- 
ing more Husky shares on the 
open market since the flrsi week 
in June, and now has 23 per cent, 
of the outstanding shares, up 
from 4 per cent acquired in the 
open market from January 1 to 
early June. 

AGTL could now bold the key 
lo control of Husky. Petro- 
Canada, the national oil com- 
pany. have offered C$52 cash for 
each of the lira Husky shares, 
while Occidental Petroleum of 
the U.S. is offering the equiva- 
lent of CS54 via a share exchange 
conditional on SO per cent 
acceptance. 

Tbe Nielson family, of Cody, 
Wyoming, and their associates 
are assumed to have well over 20 
per rent, of the Husky stock, but 
the voting power of AGTL’s hold- 


aiOXTREAL. June 27. 

The company said that a joint 
venture purchase agreement with 
Energy Ventures of Boston, 
which resulted in AGTL's initial 
4 per cent holding in Husky has 
been terminated, but declined to 
elaborate. 

One oil industry analyst said 
AGTL now holds "the balance or 
power*’ in the bidding war 
between Petro-Canada and Occi- 
dental. 

The Occidental offer is con- 
ditional on it receiving Canadian 
Government approval and SO per 
cent of Husky's outstanding 
shares. Unless Occidental waives 
the SO per cent requirement, 
sources said Pclro-Canada's 
chances of acquiring Husky have 
improved markedly because of 
AGTL's increased holding. Petro- 
Canada and AGTL are partners 
in several major energy projects 
in Canada. 

Neither the Petro-Canada nor 
Occidental offer has been mailed 
to Husky shareholders yet. 

heavy oil. 


Talcott sale to Gulf & Western dropped 


TALCOTT NATIONAL Corpora- 
tion and Associates Corporation 
of North America will not now; 
proceed with their plan whereby 
receivables and selected business 
finance loans of a Talcott sub- 
sidiary were to be sold to 
Associates. Tbe latter is a sub- 
sidiary oE Gulf and Western 
Industries, tbe diversified indus- 
trial concern. 


The proposal was part of a 
plan to restructure the outstand- 
ing debt and preferred stock of 
both Talcott and its subsidiary. 
James Talcott. It was dropped 
due to timing problems in 
obtaining the required consents. 

Talcott, however, has received 
a proposal from another com- 
pany for the purchase of the 
assets concerned in the original 


NEW YORK, June 27. 
plan at a cash purchase price 
equal to their net book value. 

The sale would be subject to a 
number of conditions, including 
a review by the prospective pur- 
ebaser of the assets and approval 
by directors and shareholders 
Talcott says that it will deter- 
mine whether to accept the pro- 
posal within the next 10 days. 
AP-DJ 


By David Lasccllcs 

NEW YORK. June 27 
AMERICAN ACCOUNTANTS are 
to propose changes in the way 
that banks account for bad 
property debts wiiii the aim of 
bringing their methods into line 
with those used at savings banks 
and property investment trusts. 

At tho moment, banks are free 
tn report at full value any out- 
standing loans even if they do 
nut expect them to he paid back 
on lime and at the original rate 
of interest. This means that the 
banks can give their assets an 
arguably unrealistically high 
value. 

By contrast, other financial 
institutions arc obliged to 
account for the cost of carrying 
delayed loans, and this results 
in a charge against earnings. 

Not surprisingly, the banks 
have resisted "cost of carry” 
accounting because it will eat 
into ihcir'prnfiis. 

But now the American Insti- 
tute of Certified Public 
Accountants is preparing a guide 
for bunk auditors which will try 
to bring banks into line, though 
its proposals will he open for 
discussion before being imple- 
mented. 

The proposals do not cover 
debts v.hich hanks expect to have 
to write off. Special reserves 
against possible loan losses are 
already required for these. 


More International 
Company News — 
Pages 33 and 34 


ABIDJAN' • AMSTERDAM • ANTOFAGASTA • ASUNCION • ATLANTA* « BOGOTA « BRUSSELS • BUENOS AIRES • CARACAS* • CHICAGO • COCHABAMBA • COLON • CONCffOON • FRANKFURT • GENEttj*i GRAND CAYMAN 
- HAMBURG • LAGOS • LAPAZ • LIMA ■ LISBON • LONDON • LOS ANGELES • MADRID “ MANAMA • MEXICO CITY • MILAN • MONTEVIDEO • NEW YORK • PANAMA • PARIS » PAYSANDU • P^TOP. STRUNK * 
QUITO • RIVERA • ROME • ROTTERDAM • SAN FRANCISCO ■ SANTA CRUZ DE LA SIERRA • SANTIAGO • SINGAPORE • STOCKHOLM • SYDNEY • TEHRAN • TOKYO • TORONTO • VALPARAISO » VIENNA • WASHINGTON. 
CNR 1000 BRANCH OFFKESIN BRAZIL “OFFICESTO BE OPENED IN 1S78. 


DBS Building, 6 Shenton Way. floor - 

Singapore, 1 . When you do business with Brazil in 
Southeast Asia, look for Banco do Brasil at this Gddress. 

tTs the place to go for highly detailed information 
on Brazil, a rapidly developing market that offers many 

DWoUant nnnnrhmMm in mmm nnntnr nf+hn 


re 


excellent opportunitiesln eveiv sector of the 
omy.irsa 


economy, ifs also a place where you'll get support. 
The indispensable support you'll need in your 
business transactions with this country. 

With 47 overseas branches, more than one 
thousand branches spread throughout Brazil, 
and total assets exceeding 46 billion dollars. Banco do 
Brasil places at your disposal all the necessary means for 
your commercial operations to be processed at a steady, 
continuous pace. Thus, the opening of our Singapore 
branch is yet another step in keeping upihatpGce. 

Whether it's this part of the world, or a ny part of the 
world, counton Banco do Brasii. 


Ifeur pfeway toMases 




3^ 


EEC case pinpoints 


.Whksnmt Times Wednesday Jiuw 




BY A. H. HERMANN, Legal Correspondent 


THE EUROPEAN COURT is because rt does not restrict t±ie mgti Court in London and in * 
considering two sets of cases use of i soglucose by the food Dutch, court- These actions, in- 
which focus on the conflict in r ust 5Li n s*™* way as valving Tunnel Refineries and 
between two major objectives of otoer ^ C Muntoes " Scholten-Honig. were referred 

th* Treaty of Rome: the Tfae Canunission does not to the European Court m which 
SLJSr? that it is its intention fo a further 'three actions were 

JJjJi? f n^hancL keep ^glucose out of the Com- brought (the British and Dutch 

competition on the one hand. munity ^ It daim ^ ^ t producers toeing joined by the 

^ 1116 W-*. <* the S im Belgian Stfui) dahning 
farms on the other. negotarioos .was merely to cnenpeawtiioa from tee Ooconal 

The cases were brought by remove the unfair advantage 3X1(1 the Commission, 
producers of isoglucose, a liquid wUdt raoglucoee eofoyed. The On Tuesday of last week, the 
sug^: made from starch fo r use Comindssion argues that isogkz- European Court's First Ad- 
by the food and ! drinks industry; cose benefited from tee aria- vocate-General, Herr Gerhard 
It is cheaper to produce than finally high price level of sugar RerisaM. presented ius Conolu- 
“JJ^rPP^fa wrthQUt **? ng object to the stans. Deattng witfli ibe first set 
SS^SShJ h? rh^ EuSSin restraint of a production quota of oases wtaiofa bad attacked the 
tlons made by the European and without having to contri- validity of tee EEC measures 

&.-r«H?s rH-31 

miffar r Commission and the CounciL 

*. P° under ** Omvm. Ho held that their measures 

la ^ BK Ti M iSSS r S^ w*re legitimate in so far as 

an important foothold 0 &“J® The isoglucose producers they aimed at the contaimnent 
u,s - market were it can freeiy ^y. that this is a true picture of a further expansion of the 
compete- wrai sugar. It is »*“ of the Oommismon's uvten* production of isoglncose and 
heved that it may replace nau tions actions. The com- proposed that the court should 
the sugar consumed by toe uss. include Tunnel Refineries confirm the validity of the rego- 

food processing industry oy j n j^ondon, Koninklijke Sholten- tattoos. Given this view Herr 

Honig NV in Amsterdam as weU Reischt had little alternative but 
In Europe its competitive as their UK subsidiary, the to recommend dihat the second 
advantage is even greater Royal Sholten-Honig (Holdings) set of actions — for damages — 
because- EEC intervention keeps and G. R. Amyium NV in Alost, should be dug a feww d- 
the price of sugar above the Belgium. They aU assert that ^ 4 ™,,+™*, of these law 
level of the world market price the financial disadvantage im- iSTjE 

at present by about 15 per cent, posed on lsogflucose by the EEC dently apprec iated. This may 
The Commission fears there- measures have turned their v_ w- i«ni?lni*n*e a timv 
fore that isoglucose could ulti- profits into I o^es and reduced %£EFi£rSZ?£ Z 
mately replace as much as 3m the value of their investments wider-public. and because the 
tonnes of beet sugar, equalto which total some £20m. Con- discusd on of the EEC sugar 
a 30 per cent share of the EEC strucuon of new eapacrty at „ a starcb subsidies, levies and 
market Tilbury had to be stopped half- refunds, and of price interven- 

It has to be added that Britain way- tion linked with three different 

is particularly suitable for The isoglucose producers first types of production quotas for 
development of this industry attacked the regulations in the sugar, obscured the real issue 


of the hearings behind a veil of 
technicalities. 

Yet the case is of great 
general importance. The Court 
cannot decide the claim of the 
isoglucose producers without 
first making up its mind about 
the objectives of the European 
Economic Community, and if 
these are found to be self-Con- 
tradictory, whether the Council 
and Commission had the right 
to “ choose . .. . which of those 
objectives may take precedence 
over the others. . . The Com- 
mission argued that the exist- 
ence of this right had been 
established by an earlier judg- 
ment. but the question remains 
whether it may be used to 
negate rules as fundamental as 
those invoked by the isoglucose 
plaintiffs. 

To put It simply: the declared 
objectives of the Treaty of 
Rome are the achievement of 
greater prosperity in the 
Common Market and the better 
satisfaction of - consumer needs 
by safeguarding internal free 
trade and unrestricted competi- 
tion, leading to greater 
economic efficiency and tech- 
nological progress. One would 
say that the development of 
isoglucose production meets 
these objectives. But it .con- 
flicts with the Council's policy 
for agriculture. “ It has to be 
acknowledged.” the Council told 
the Court, “that in trade in 
agricultural products and pro- 
cessed products obtained from 
these, the Treaty has resulted 
in free trade becoming the 
exception and regulation, the 


rule.” This, the Council argued, 
overrides the fundamental right 
to free enterprise, invoked by 
the producers of isoglucose. 

The case touches a raw nerve 
because the product is situated 
on the Interstice of the indus- 
trial community, and of the 
agricultural - community: the 
one supposed to be steered by 
free trade and competition, the 
other, by protectionist regula- 
tion. 

Even tins setoasm howe ver 
sbooM not stop the •two different 
methods of econom ic manage- 
ment from, achieving tee same 
ultimate benefit for tee con- 
sumers. However, the regula- 
tion of agriculture does not 
serve this - end. It does not 
stabilise the market, as re- 
quired’ by the Treaty, but 
creates permanent instability by 
creating unamatmgeable sur- 
pluses. These surpluses have 
either .to be given away or, as 
is the case with sugar, exported 
with the help oE an EEC' 
subsidy. It was in order to 
finance this subsidy, the Com- 
mission said, that a levy had 
had to he imposed on the pro- 
duction of isoglncose. The pro- 
ducers of Lsoglucose argue that 
in this way consumers are 
punished twice: first they have 
to pay an excessively high price 
for sugar which leads to over- 
production; secondly, they are 
deprived of the benefit of a 
cheaper substitute because its 
production is made impossible 
by a levy designed to help to 
export the artificially achieved 
surplus of sugar. 


For once, Tony Davies is happy 
to appear in aheadline. 


The Community has a sugar, factories The national cartels background of the EEC price 
surplus of 3-2m tonnes. This fixed the consumer price' of system for sugar. The intervcn- 
ia composed of 23m ■ tonnes beet-sugar high above the valid tion price (at which the Can- 
excess of production over con- market price determined by mission is ready to buy surplus 
sumption (9.2m tonnes in 1977) cane sugar and used part of the sugar) keeps the price of sugar 
and l-3m tonnes of imports difference to subsidise exports in the Community about 15 per 
from Asian, Caribbean and at prices below, domestic cent above the world market 
Pacific countries. These, im- production costs. level. From this difference pro- 

ports sere then reexported with Like the present EEC system, ducers in regions least suited to 
the help of a subsidy, thus xna& the prewar scheme created a the cultivation of sugar best 
Ing happy not only sugar pro- multiplicity . of quotas. There benefit fully, as long as tlw 
ducecs hpt also' tee companies were based on seniority— that is keep within the basic A- quota. 
«h« Pf rf« y ebe B ulgur in and out keeping those ' who ' were Producers in regions better 
of Europe. ' established in the business and suited for -the cultivation of 

Such methods of regulation aU newcomers but of it. : The sugar beet can overstep the 
seem odd even to continental s i me objective can be detected basic quota, and as long as they 
agricultural economists. They in the measures now snacked keep within the additional B 
surpass in ’ before the European Court. . quota they still benefit from tlw 

national food marketing ays- . Though much’ has changed intervention price level but 
terns developed in the inter-war since 1930 . competition is still hare to pay a levy, now- fixed at 

9-35 units of. account por 100 
legs., which the CommissiMi 
uses for subsidising the- export 
oF sugar surpluses resulting 
from its .intervention price. 
(Quota C is not «lig$le for 
price intervention at all.') 

The same levy which applies 
to the B-quota of sugar baa been 
'imposed on the entire, produc- 
tion of isoglucose .(though 
reduced to one half fbr the first 
year of production). Tha com- 
plaint of the isoglucosei pro- 
ducers is that even sugar 
factories in regions most suit* 

period either by cartels or by anathema to the beet-sugar able for the cultivation of sugar 
governments — and in either industry. The. aim of thn CAP beet are paid the futt'interven- 
case backed and milked by is not equality of treatment tinn price for their baste A 
agrarian political parties. (which would enable the more quota while isoglucose pro- 
The pre-war international efficient producers to capture a ducers have, so to speaks no A 
sugar cartel allocated export greater part of the market) but quota. As a result of pressure 
quotas to national cartels 'in rather equal remuneration. In from sugar producers — who 
beet-sugar producing countries trying to refute the complaint - were refused pernnssaon t\y tee 
and these in turn allocated that the levy imposed on Court to participate in the IM- 
production quotas to sugar isoglucose is discriminating; the gallon on the side of tkfe 

Council asked: “Would equa- Council and the Commission — 
ift-y of treatment ensure tee the A quota is fixed Sohigh-that 
same remuneration?” B quota production reaches 

Although .the isoglncose only a fraction of it Taking tile 
producers claim that the EEC proportion of 1975-76 when, the 
measures offend the fun da- B quota production reached 
mental principles of the Treaty only one-eighth of A quota 
and are therefore invalid, their production, one can oondtatde 
main grievance seems to be that that the burden of the levy per 
isoglucose is deprived of the unit of production' is right 
benefits which this EEC times higher on aaoglucosft tqan 
regulatory system affords to it is. on the aggregate of A arid 
beet-sugar and. moreover, that B quota sugar. This, it ;ia 
the measures depriving them of alleged, makes the production 
these benefits were taken of isnglucose quite uneCo- 


EEC sugar balance sheet 

wn /im 

(in mq&MT tonrn*) 

Production bwiafittng from the 
mtonrottion price (Quota A + B)* 

Production excluded from tb* • 

EEC market (Quota C) . 

Impo r t* under Uwt Convention 


Consumption 

Surplus exported with the help of a subsidy 


IDiS 

0.4 

U 

114 

U 

32 


In 19 75/76 A qoou wmx $JSm Mums and S Wtale Cmou. 


H 




At employees 'suggestion, the Hortdiffc factory at Bristol included a supermarket 
—as well as a bank and a Post Office. 


Since industrial news today seems 
toconsist mainly of horror stories about 
strikes,lock-<^ 

it’s understandable that Tony Davies, ~ 
Personnel Director (f Imperial Tobacco, is f 
hardly eager to make the front page; 

. “I suspect that mostqf the public 
has a hopelessly inaccurate picture of 
British industrial relations— just because 
it never gets to read about the hard 
vroricputineverydaybofliby .. 
management and by unions, to frpep 
companies running productivel y 
• ^perial T^cco maybe acasein 
point^Vegrowntobeavery - 
substantial creator of wealth (and payer 
of taxes. 1 ); and there’s ho doubt at all 
that good internal relations has been a 
major factor in our growth. 

“Part of that success^ifsfairto 
claim, has been due to specific advances 
in policy Like the Imperial Tobacco 

Pension Fund, which has covered full-time employees at all levels since . 

1929, and was a pioneer in its field. And like the early establishment not 
only of equal pay for men and women, but of joint agreements on : 

equal opportunity - 

“But the heart of the matter is in the dose working relationship built 
up over the years with our Trade Unions —through the hsud day-to-day work 
of consultation, bargaining and proMem-solving. Let me give some examples. 

“With Union co-operation. Imperial employees made a significant 
contribution to the detailed planning of two of our largest fadories, making 
thera both more effident and better places to workm 
;. “We maintain a continuous dialogue on problems like pay structures, 

job evaluation, re-equipping and cost effectiveness; and we’ve found that a 
joint approach leads to better solutions in all cases. 

“Recently, weVe been consulting on the changes brought about by the 
new EEC tax regulations —dianges that are going to affect all of us. Once 
again, by sharing the problems, we believe weTtarrive at the best answers. 

. “Ifs not glamorous stuff —either for the manager 7’ : r 
' trying to meet a deadline, or for the shop steward 
who’s. trying to represent his members 
responsibly. But that’s what keeps the ' 
business tidcing ^even if it never 
• makes the newsT 

Toriy Davies is one of the 
20,000 strong team that makes 
up Imperial Tobacco, a major 
employer; taxpayer and investor 
.in Britain’s future prosperity. 

. One major recent tnt^bnent; the Horizon factory at Nottingham. 


without proper warning and 
without providing for a 
transitional period. In the final 
analysis, therefore, the 
isoglucose producers are not 
protesting— -at least not loudly— 
against the Sugar Directorate's 
view that everybody should earn 
the same irrespective of the 
efficiency with which he 
produces. ; 

The lsoglucose producers' 

I complaint of discrimination can 
be understood only against the 


nnmical. 

There is no doubt that tit* 
measures deprived isoglucoise 
producers of the advantage with 
which they started. Another 
question is whether they should 
have this advantage. Sugar 
made from North American 
corn (maize) is no better than 
sugar made from Central 
American cane and neither ha* 
any’ merits to eyes accustomed 
to the green expanse of sugar* 
beet fields. 


FINANCE 

for industry and commerce 

Whetherycxi 're seeking finance for expansion, 
for plant equipment, property or a private mortgage, the 
directors of Garfield Marwin personally investigate 
y your proposal. 

A letter or phone call will 
'- <£ ‘^ri receive immediate attention.- 



I- i . | For enquiries please ring 
Worthing (0903)814008. 


Specialist brokers in corporate finance 

Cliftonville Hall, Hove, East Sussex, BN3 3RZ 


The Royal Navy 
The^ierdttahtfk^y 
The Royal Marines 
OtirFishermeh 



. Thtsirdaabkd • 
TJh& pensioners . 
, . Theirwkknm 
Thor children " 




Imperial Tobacco: people at work 


Imperial Ibbacco Limited— a member of Imperial Group Limited 


for Sailors 
looks after them all 


In this Country of ours, there is rio-ohe who is 
7 notconnected with the sea. . .. 

. Half the food, we eat comes from across the sea. 
Many thousands of us, our relatives or friends are- 
past or present members of one of the sea-farins 
services, or of ah industiy dependent on them. - . 

There are many charities for seafarers and their 
families. One, only one, however, is the centred charity, 
charged with collecting and providing funds for. all 
other seafarers’ charities; and with making, sure that 
the money is distributed whereit can be of most use. 

That central charity is King George’s Fuad for 
Sailors. Launched in 1917 at His Majesty’s personal 
.wish, KGFS distributes funds without distinction of 
service, of rank or of creed. The sole criterion is to- 
distribute the money to the areas of greatest need. ’ 

• When, you want to remember our seaferers whc* 
are in need, remember King George’s Fund for 
Sailors. We’ll see to it that not one penny of your 
money goes to waste. 

_ - Please send your donation to 





King George's Frndjor Sailors 
IChesham SL, London SWlX-Sftfr 
: FHN6-fl}R CHftnrate -THftf SUPPflKF ‘StlffiSm THHR FAUaw 

■ : • ' : 7 V i m i 'l ' 


) 


V«v. 

Ji 


A 

r? 

i ,■ 
i c 


i - : 






Financial Times Wednesday' June 2S 1978 


international financial and company news 



33 




SWEDISH COMPANIES 


a 

:‘% y 

?$■ 


•vjS 

i 

7 i* 

? . -V 

> '^i 

• ft ;.. 1 
•■: .^U 

-•--1 % 

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n«; 

i 


Fagersta pulls out of steel merger 


iCODBK 


reS 

!o£ 


l)0 


BY WILLIAM DLHJLFORCE 

y%ASS for the restructuring of 
;the Swedish special industry col- 
lapsed yesterday when Fagersta 
‘announced that it was withdraw- 
ing from merger negotiations 
.-wttb SRFand Uddeholm. The 
-talks, which included a team 
-frjom the Ministry of Industry 
Jtad been- going on since March! 

'* Fagersta found that as far as 
TP was concerned the terms of the 
'merger involved too heavy a 
r financial risk. Fagersta’s chair- 
man,- Professor Ulf a! Trolle 
explained that the new company 
jvpuld have had to raise KrlAba 
- ($392m) in loans to supplement 


the capital inputs oE the three 
partners and the state. 

Earlier Professor af Trolle had 
asked the government to con- 
tribute to ihe share capital of 
the new company. The Ministry 
of Industry, which is already 
committed to providing 60 per 
cent of the share capital of the 
new _ commercial steel company, 
declined this but offered to make 
available KrlJbn in loans and 
credit guarantees. 

Under the proposed tchns each 
partner would nave contributed 
KrSOOm to the equity of the 
new company with a further 
KrSOOm to be raised among them. 


With slate loans of Krl.3bn 
and a borrowing requirement of 
Krl.8bn. the total capital base 
would have been over Kr5bn. 

Reaction to Fagersta’s decision 
from the Ministry of Industry 
was that the restructuring of 
the steel industry had been post- 
poned. Civil servants believe 
that Fagersta may in fact be 
more interested in negotiating 
a merger with the Avesta and 
Nyby stainless steel plants 
operated by the Johnson Group 
and Graenges. 

As for Fagersta ’s two potential 
partners. Uddeholm stated that 
it wonld continue with the 


STOCKHOLM. June 27. 

rationalisation programme it had 
halted while the merger nego- 
tiations took place. An SKF 
spokesman said the roller bear- 
ing group bad an alternative 
plan ready for its steel opera- 
tions. 

Last year Fagersta reported a 
loss of KrTOra and Uddeholm 
made an operating loss of 
Krl42m on its steel operations. 
SKF's consolidated earnings 
dropped to Krl56m on a KrSbn 
turnover In 1977. It did not 
specify the losses made on its 
steel business but Swedish Press 
reports put these in the KrlOOm 
range. 


Statsfoeretag stays in the red 


• t 6y Our Nordic Correspondent BY OUR NORDIC CORRESPONDENT 

EccpT _“£l T HE , companies controlled by these and other changes, the loss 

SSSi^JSSSLS^SSS S^foerctag, the Swedish State is roughly SKr 1 Mm larger. 
Jn» --ri Drintinp^ernirn ho 1 , .^ ,n S company. made a con- which corresponds to the increase 

*°l ,daled pre-las loss of in the loss incurcd by LKAB. the 
"lor^l977-78 i 335 ™ ESrj-Sml during the Slate iron mining company. The 

h 11s ? ppelrte Ior first f °nr months of this year on turnover shows a 12 per cent 
: ho!Ii^SS£,rf nS h« a ^ no means a combined turnover of SKr2.9bn growth after adjustments for the 

< S637ml - The management ex- changes In group composition. 
Indu5tries pecLs 197S as a whule to produce The interim report notes the 
l 5ttS n caSS W hv 1 sir l S slinilar last year's further deterioration in LKAB's 

SKr 1 bn deficit. position and. promises that a 

i-lT-T 111 a J - a 0 The four-month loss is decision will be taken later this 

'5jf !J2S! ls «if su $ 50 u f? ed thal SKr 37m ,ar « er than that re- year about the mining company’s 
h iha n M » are L ho ? et p° rled for the corresponding future operations. 

'one'B jhare. Sarne ca * e ® ory plus Period of last year, bnt the Many of the State subsidiaries 


figures are not strictly compar- improved their performance in 


-V *. 


Losses for Axel Johnson offshoots 


_rr*u _ ______ n . . . uvi on illiv wuikui- iiiiuiuvcu uimr uuiiviiuaiiLc 

“EEL? f B ^? are ,? \ s aWe because of the change In the first four months and the 
i ‘ JSf 1 *?® 6 Esselte s the composition of the Statsfoere- majority are reported to have 
al^ Ui 2l5l-£? ares ? r con ‘ ta 8 group. The shipyards and either exceeded or equalled their 
J***5”” «.^? , S? tur £ s oa toreign the NJA steel company no longer targets. The loss made by Berol 
j by contanue its form part of the group, while the Kerai. the chemical company, 
expansion abroad. Since if sold Eister textile company lias been was reduced to SKr ISin, while 
^ p tEL; m 5 l a J °®r® b » ro in added. Kabi. the pharmaceutical com- 

1974, ^saelte has bought -0 com- if adjustments are made for pany, improved on both- its 1977 
Panfes, eight of them abroad, the 
.largest purchases being made in 
thSTT.S. and Britain. 

' ’ Seine 38 per cent of Esselte’s 
3>Kr~'2.45bh ($532m) sales in 
■1917-78 were effected abroad. 

■The purchase of Dymo should BY OUR NORDIC CORRESPONDENT 
-oaorease this share to half of ^ 

jm. ex panded turnover not far THE Axel Johnson group. .SKr l.ibn turnover. 

Sturt of SKr 4bn. The philosophy Sweden's largest privately owned Nordstjernan’s result in par* 
•h gttb d this foreign thrust Is business after Volvo, has con- ticular, is misleading because it 
r eipl«hed at length in the latest tinned the public disclosure excludes profitable minority 
Report * : started last year by issuing today holdings. This company covers 

fi JEsielte’s " Swedish companies ft* 11 187 7 accounts for its four the group's shipping operations, 
•generate substantial cash but principal companies. These' have the steel plants which are con- 
JKtast already possess a large to be dealt with separately cenlrated on stainless steel pro- 
share of the domestic market and because the crosfrownehbip ducts, the engineering subsidi- 
Jherefore have little potential pattern and minority holdings aries and construction, computer, 
IfOr expansion. The policy is to make a consolidated appreciation insurance and bus companies, 
nfoirilise the. ' financial resources impossible. Its confined sales dropped by 

r of these. “ mature ” companies Briefly, the largest subsidiary. SKr 94m in 1977 due mainly to 
-ffo- hiofe swiftly expanding com- Nordstjernan. reports a pre-tax weak demand for engineering 
■pianies abroad, "Which need liquid loss of SKr 55m (S12m) on products. The operating result 
-resources for their expansion. SKr 4.68bn fSlbn) turnover. The tumbled from SKr 3&n to 
t .Two subsidiaries illustrate this trading concern, A. Johnson, re- SKr 15m. Net interest charges 
policy. . Efiseltewell, the corru- turned SKr 2.5m pre-tax on an of SKr 54m and currency losses 
i2’afed packaging unit based in SKr S.lbn turnover. Nynaes Oil of SKr 22m contributed tn give 
'Sweden, had unchanged sales of made a pre-tax loss of SKr 0.8m the pre-tax loss of SKr 55m. 
r SKr ’227m in 1977-78 but con- on unchanged sales of SKr 1.881m However, this is not the whole 
Wtriitad SKr 42m to group and NYA Asfalt, the construe- story because Nordstjernan has 
"■operating profit on capital em- tion and civil engineering com- a 40 per cent interest in Saba, 
ployed of SKr 96m. - pany, lost SKr 1.2m on an the wholesaling, fruit and vege- 


STOCKHOLM. June 27. 

result and its 1978 budget. 

Statsfoeretag operated with 
ample liquid assets during the 
period, thanks to the SKr 700m 
State grant issued for the forma- 
lion of the new steel company 
SSAB and the SKr 190m State 
capital put into Eister. Long- 
term borrowing remained prac- 
tically unchanged during the 
period but the group's financial 
needs arc still heavy and more 
loans are expected to be taken 
up during the resLof the year. 

The interim report does not 
include the accounts of SSAB 
ihe new steel company, or of 
Swedish Petroleum, in both of 
which the State has a 50 per cent 
holding. The legal position on 
the consolidation of these con- 
cerns in the Statsfoeretag 
accounts has not yet been clari- 
fied. 


STOCKHOLM, June 27. 

table trading company, which 
turned in a pre-tax profit of 
SKr 81 m last year. It also has 
a 25 per cent holding in the 
Wallenius shipping companies. 
These minority holdings added 
over SKr 50m to Nordstjernan's 
earning. Together with a net 
extraordinary income of SKr 48m, 
derived mostly from the sale of 
ships and other assets, they 
produced pre-tax earnings of 
SKr 72m against SKr 50m in 
1976. 

The shareholders’ report notes 
that last year’s krona devalua- 
tion has improved the competi- 
tiveness of Nordstjernan's con- 
stituent companies somewhat and 
forecasts a slow improvement in 
business during 1978. However. 
this is not calculated to give any 
appreciable growth in earnings 
before 1979. 


BMW in 
$145m 

Daimler link 

By Guy Hawtin 

FRANKFURT. June 27 

A SHARP increase in activity 
and a major new capital invest- 
ment programme in Austria were 
announced today by BMW, the 
West German ' manufacturer of 
quality’, high performance cars. 

After six months, group car 
production is running some 9 
per cent ahead while turnover 
at the parent company is 18 per 
cent higher. The Austrian pro- 
gramme comprises a joint ven- 
ture with Steyr-Daimler-Puch to 
build a DMSOOm (8145m) plant 
to develop diesel engines. 

The company has enough 
orders in band to guarantee 
operation at full capacity until 
well into next year. Despite the 
fact that BMW reported in May 
that the high point in the car 
boom bad been reached, there is 
still no sign that demand is 
slackening. 

At the group’s annual meet- 
ing, Herr Eberhard von 
Kuehnheim. BMW’s chief execu- 
tive. said that tbe group had 
produced some 163,000 cars in 
the first half year — a full 9 
per cent more than in tbe com 
parable period of 1977. 

First half turnover for the 
parent concern was DM3bn, 
while group turnover totalled 
DM3.3bn (SL59bn). Profits, said 
Herr Von Kuehnheim. would be 
satisfactory: last year the group 
made DMl25^m at the net level. 

The joint venture with Steyr- 
Daimler Is part of the concern's 
diversification policy. They are 
to jointly manufacture diesel 
engines for motor vehicles and 
stationery industrial applications. 
The new project wtU involve the 
setting up of a joint subsidiary 
which will be formally estab- 
lished later this year. 


Setback at Renault after 
commercial vehicle loss 


rr 


■p-- 


■?' •• 


COMMUNAUTE URBAINE DE MONTREAL 

QUEBEC 


U.S. $250,000,000 
TEN YEAR TERM LOAN 

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BANQUE E3JRQPEENNE DE CREDIT [BEC] 
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MERRILL LYNCH INTERNATIONAL BANK LIMITED 
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BANQUE EUROPEENNE DE CREDIT (BEC) 

CANADIAN IMPERIAL BANK OF COMMERCE 
THE MITSUBISHI BANK, LIMITED 
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ASSOCIATED JAPANESE BANK (INTERNATIONAL) 
LIMITED 

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a7TH JUNE. 1973 


Bayer sets 
sales targets 

LEVERKUSON. June 27. 

BAYER will need to lift turn- 
over by between 5 per cent and 
6 per cent during the second 
half of 1978 if sales targets for 
the year are to be achieved, 
AP-DJ reports. 

This was emphasised at tbe 
annual meeting by the manage- 
ment board chairman. Herbert 
Gruenewald who confirmed that 
sales this year were expected 
to rise by up to 3 per cent. Bayer 
is one of the “ big three ” 
chemical groups in West 
Germany. 

Last month Bayer reported 
parent company first quarter 
turnover of DM 2.61bn, which 
was tbe same as for the 1977 
quarter, wbile world group turn- 
over rose to DM 5.65bn from 
DM 5.41bn. World turnover for 
the first quarter included for the 
first time sales of Miles 
Laboratories of the U.S. 


BY DAVID CURRY 

PROFITS LAST year at Regie 
Renault, the parent company of 
the State-owned Renault, motor 
group, were virtually wiped out 
by a combination of severe losses 
In tbe commercial vebicle sector, 
price controls, a substantially 
higher tax bill, and an expanded 
programme of investments. 

Renault, which last year was 
Western Europe's leading motor 
group with 12.4 per cent of car 
registrations, ended up with 
FFr 12.1m (£1.45m) net profit 
against FFr 610.7m (£73.5m) the 
previous year. Operating profit 
was down from FFr 825m f£99m) 
to below FFr 400m (£4Sm) and 
cash Bow slipped from FFr 1.77bn 
(£213m) to FFr 1.4bn (£16Sm). 

Tbe group, which employs 
243,000 people, does not publisb 
consolidated figures, but group 
sales topped Frs 4 9.2 b n 
(Frs 44.6bn in 1976) to which 
the car division contributed 70 
per cenL Car production reached 
a record 1.737m with tbe group 
taking more than a third of a 
national market of 1.9m 
vehicles while passing for the 
first time tbe lm mark in over- 
seas 5 ales. _ 

The forecast for this year is 
for a similar output. Tbe group’s 
world production is down by 1.3 
per cent over the .first five months 
of the year but the new Renault 


IS is expected to give a bonst to 
the company's performance. 

M, Bernard Hanon. who heads 

the car division, said that nego- 
tiations with American Motors 
for the sale and eventual manu- 
facture of some Renault models 
In the U.S. were taking longer 
than expected partly because of 
legal problems and partly because 
or the difficulty in assessing the 
economic and technical 
feasibility of production of the 18 
In the American company's fac- 
tories. 

He also said that tbe new man- 
pleted its work on tbe Leyland 
land) seemed to be renewing its 
interest in co-operation with 
Renault though be did not expect 
firm results until it had com- 
pleted it work on the Leyland 
model range. The co-operation 
envisaged under the previous 
Leyland regime was based on the 
production of industrial com- 
ponents. 

The commercial vehicle 
division, pursuing a FFr 6bn in- 
vestment programme to renew 
tbe Savicm and Berliet ranges, 
had what the Renault chairman, 
M- Bernard Ycrnier-Paltiez called 
a “disastrous" year with the 
FFr 130m of profits in 1976 
turning into a FFr 250m deficit. 

The national market had 
declined by 6 per cent compared 
with 1976 and in the second-half 


PARIS. June 27. 

of the year by no less than 14 
per cent. So far this year the 
French market was 16 per. cent 
down even un the depressed 
levels of 1977. 

A destructive price war and 
declining demand from ' ihe 
Third World had helped to make 
life miserable while she . need to 
make provision for early retire- 
ment in order to inm the labour 
force was an additional weight 
on the division's finances. 

Finally, the industrial division, 
which embraces rubber, machine 
tools, special steels, bearings 
and agricultural tractors, hud 
made no contribution to .profits 
with the ills of the European 
machine tool sector weighing 
particularly heavily. 

Other factors influencing the 
parent company results were the 
payment of a FFr 130m “divi- 
dend" to the slate and the in- 
crease from FFr69m . to 
FFr 210.7m in corporation tax dm* 

to the exhaustion of lax credits, 
■parent company turnover w d s 
FFr 2S.7bn ol which FFr ll:3bn 
was direct export . 

M. Vcrnier-Palliez .dismissed 
the strikes which have hit two 
Renault plants spasmodically 
over tbe past month as being the 
work of a small minority. With 
the recall of the 9;000 people 
laid off at tbe Fiins plant today 
all factories were- operating. 


Vroom en Dreesmann confident 


BY CHARLES BATCHELOR 

AN INCREASE of 42 per cent 
in net profit to FI 74m (S33m) 
last year, on the basis of re- 
placement accounting, is an- 
nounced by Vroom en 
Dreesmann. Holland's largest 
retail chain. Historical cost 
profits rose by 35 per cent from 
FI 62m to FI S4m while gross 
sales were 16 per cent higher at 
FI 3.97bn ($1.78bn). 

The first quarter of the current 
year confirms the privately- 
owned company's expectation 
that the operating result for the 
year will equal that of last year. 
Operating profit rose 22 per cent 
to FI 207m in 2977-78. 


Profitability is at a reasonably 
acceptable level, both in relation 
to capital employed and turn- 
over. But compared with V and 
D similar companies in the U.S. 
have net profit as a percentage 
of sales two to three times 
bigher. For this reason a small 
hut growing part of V and D’s 
net profits come not from its 
Dutch retail stores but from 
participation in other companies 
and from non-retail operations. 

V and D has extensive plans to 
modernise and expand its retail 
network in Holland and abroad, 
according to the annual report. 
Investments in fixed assets and 
participations is expected to be 


AMSTERDAM. June 27/ 

FI 200ra in the current year after 
F] 235m. This expansion is to 
an extent forced on the company 
because of rising costs and 
pressure on margins, it said. 

Abroad V and D has begun 
developing a chain of lingerie 
stores in Belgium, together with 
the G.B.-lnno-BM group which 
is also participating in the setting 
up of a number of home improve- 
ment centres in Holland. 

The annual report showed 
that V and D is acquiring 37 per 
cent in Dillard Department 
Stores of Little Rock, Argansas. 
In February it said its share 
would be 34 per cent 


Dutch rights issue terms 

BY OUR OWN CORRESPONDENT AMSTERDAM, June 27. 


NATIONALE - NEDERLAND EN 
said it has priced its one-for-ten 
rights issue at FI 97.50 per FI 10 
nominal share/repositary receipt 
This compared with today's clos- 
ing price of the Insurance 
group's shares of FI 104 on the 
Amsterdam Stock Exchange. 

Holders of 60,000 warrants 
attached to the $30m debenture 
loan issued in 1976 are also 
entitled to a preferential right 
on the basis of 1.1 new shares of 
FI 10 for every warrant already 


held. This means 1,307,770 shares 
will be issued, valuing the rights 
offer at S57ra. 

Each subscriber will receive an 
optional entitlement and war- 
rants will be issued allowing the 
holder to purchase depositary 
receipts representing 10 shares 
in Natlonale-Nederlandcn at 
FI. 125 until August 1, 1988. Sub- 
scriptions for 20 shares entitle 
the holder to one new warrant 

Dealings begin in the rights on 
July 3, and subscriptions are 
open on July 1L 


Boussac wages 
will be paid 

PARIS, June 27. 

THE CREDITOR banking poo! 
of tbe ailing Boussac textile 
group has agreed to advance the 
group cash so that it can pay its 
11,000 workers their June 
salaries, and give them an 
advance for their four week's 
annual paid holiday in July. 
Credit Lyonnais, the nationalised 
bank which is representing the 
pool announced this today. 

The pool advanced some 
FFr 25m. 

AP-DJ 


THIS ASSOWCIKBIT APPEARS AS A MATTER OF RECOUP ONT.Y 


— > 



SONATRACH 

(SOCEETE NATIONALE FOUR LA RECHERCHE, 

LA PRODUCTION, LE TRANSPORT, LA TRANSFORMATION 
ET LA COMMERCIALISATION DES HYDRO C ARBUSES) 


U.S. $218,000,000 


BANGLUE AEG] 


GDJuuams by 

ENNE DE DEVELOPPEMENT 


TOR AND OPT BEHALF OF 

THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA 

MANAGED BY 

ARAB PETROLEUM INVESTMENTS CORPORATION 
BANKAMERXCA INTERNATIONAL GROUP 
BANK OF MONTREAL 

BANKERS TRUST INTERNATIONAL LIMITED 
CITICORP INTERNATIONAL GROUP 
CONTINENTAL ILLINOIS LIMITED 

CO-MANAGED BY 

ALGEMENE BANK NEDERLAND NV 
THE BANK OF TOKYO, LTD. 

MELLON B ANK, N.A. 

SECU RIT Y PAC IFIC BANK 
SOCIETE GENERATE 

UNION MEDITERRANEENNE DE B ANtlUES /UNITED CALIFORNIA BANK 

PRO VXD HD BY 

ARAB PETROLEUM DTraSTMENTS COEPOHATTON BANE OP AMERICA NT & SA 


BANE OF MONTREAL 
CITIBANK, NJL 
SECURITY PACIFIC BANK 
THEBANKOF TOKYO, LTD. 

SOCIETE GENERALS 

UNITED CALIFORNIA. BANK 

BARCLAYS BANK INTERNATIONAL LIMITED 

CANADIAN AMERICAN BANE, SA 

GRIND LAYS BANK (JERSEY) LIMITED 

IRVING TR U ST COMPANY : -L 

the SANWA BANE, LIMITED 

BANOUE COMMERCIALS POUR L'EUROPE 

DU NORD (EUROBANK) 

BHF-BANK INTERNATIONAL 
THE FIDELITY BANK (FRANCE) 
IN TERNA TIONAL COMMERCIAL BANK 
LDStTBD 

THE NIKKO (LUXEMBOURG) SA. 

NORDIC BANK LIMITED 
A P BANK LIMITED 

THE BAKE OF YOKOHAMA- LIMITED 

BANQUE ERANCAISE DECR EPIT 
INTERNATIONAL LIMITED 

THE NATIONAL BANE OF KUWAIT S^X 

PIERSON, HELPRI NG fc PIERSON 
(HONG KONG) LIMITED 


BANKERS TRUST COMPANY 
CONTINENTAL ILLINOIS NATIONAL 
BANK AND TRUST COMPANY OF CHICAGO 
ALGEMENE BANK NEDERLAND NV 
MELLON BANK, N-A. 

UNION MEDITERRANEENNE DE BANGUES 
BANCO DE LA NACION ARGENTINA 

(NEW YORK BRANCH) 

GIRARD BANK 

MITSUBISHI BANK (EUROPE) S.A. 

LONDON Sc CONTINENTAL BANKERS LTD 
ALLGEME1NE DEUTSCHE CREDIT-ANSTAL T 

BANQUE INTERNATIONALE FOUR 
L'AFRIGUB OCCIDENT ALE (BLA.O.) 

CANADIAN COMMERCIAL AND INDUSTRIAL 
BANK 

TTARgTB TRUST AND SAVINGS BANK 
INTERNATIONAL RESOURCES AND 
FINANCE BANK S.A. 

NOMURA EUROPE N.V. 

FKBANKEN INTERNATIONAL (LUXEMBOURG) S.A. 

AUSTRALI A AN D NEW ZEALAND BANKING 

GROUP LIMITED, lomson 

FIRST NATIONAL BANK OF OREGON 

GOLDEN STATE SANWA BANK 

PAN ASIAN FINANCE LIMITED 

UB AN- ARAB JAPANESE FINANCE LIMITED 


YAM4ICHX INTERNATIONAL (NEDERLAND) N.V, 

CmCOEP INTERNATIONAL BANK LIMITED 

AGSNX 


JUNE S, 1BTB. 





G Stanbic forecasts farther 
Fi solid growth in earnings 


BY RICHARD ROLFE 

A FURTHER increase in profits 
is forecast by Standard Bank 
Investment Corporation 

(Slanhii;). the South African 
subsidiary of Standard and 
Chartered, for the current 
financial period, which will be 
for nine months in December 31, 
fallowing a change in the hank's 
year end. 

On the forecast. Stan bit's 
srowth path, interrupted by high 
provisions fur bad debts in 
1976-77. imt resumed in the year 
ended March 31. 1978. will be 
continued and the staled policy 
of paying out 5(1 pur cent «*f 
distributable profits in dividends 
augurs we!! for an increased 
payment t» shareholders in the 
current period. 

Last year. SLanbic's ta.sed 
profits improved Trom R21.2m 
io R31.7m (S36.ini » but the 
former figure was after providing 
Rl2in against loans to the 
failed township developer. Glen 
AniJ. Over ihe year, share- 
holder* funds' grew from R 184m 
tu RliOlni and total advances, 
including hire - purchase 

contracts. lYoni Rl.Shn to 
J?2.Ib/i. The dividend was raised 
frnm *J!2.5 cents to 2S cents a 
share, and this was the signal 
for the shares ■ to go ahead 
sharply from 355 cents ahead 


JOHANNESBURG. June 27. 


| Japanese 
move into 
U.S. bill 
market 


TATA IRON AND STEEt 

Dividend ra 




.m 

W 


BY R. C. MURTHY 


of the preliminary figures to 
4 to cents, where the historic 
yield is 6.8 per cent. 

At the heart of Sunbic's fore- 
casts is the plan to achieve a 
•■maintainable” return of 16 per 
cenl on year-end shareholders' 
funds. Last year, the return was 
15.7 per cent,- but Mr. Ian 
Mackenzie, the chairman, says in 
his review that 16 per cent will 
be realised in the current period 
and that the figure would be 
higher but for the need to 
“ equip the group for future 
eN'Dansion and the improvement 
of'services to customers.’' 

While the changed year-end 
complicates projections, analysts 
believe that annualised earnings 
could ho around 65 cents a share 
for the current period with an 
annualised dividend of about 
32 cents a share. 

Reviewing ihe evenls of the 
past year, Mr. Macke uric singles 
out t’hr**e r,f particular import- 
ance. First, the group forged 
links with the Prudential Equity 
Building Society (now reoaraed 
standard Building Society) in an 
attempt to widen its range of 
customer services despite the risk 
of directing deposits away from 
the hank. Second, it successfully 
tendered RIOOm of leasing 
finance for lscor. the State steel 
group, for equipment on the new 
Grootgeluk coking coal mine, a 


strategically important develop- j By Yoko Shibaca 

m \ aL o,| TOKYO. June 27. 

Year>end- ' s£,t ‘^uilSlW. 1 ^^ AR ^ or Pril ^ 

J£J- UD ™ Holdtot ? Soup l W i purled full-scale 
which urn WJ5 one of iho ! “ lr ^„ m0 “2., . 

s “-| S5SM! .oToKf 

Dll- S „I0UP a??re 9 ai«.. Ru«L- the hank 


Norin-Chukin Bank, the hank 
Slanbic's profit plans fur the! for agricultural, fishery and 
year build in various macro- forest co-opcrali'cs. bought 
economic assumptions, including I 849nm of U.S. Treasury bills 
an increase of 2.5 per cent in i in the 10 days to the end Of 
South African GNP. a rise of V-ij last week. Tbe amount is the 
per cent in the money supply J largest ever for a Japanese 
and an inflation rate of just over private institutional investor. 



JO per cent Because of continu- 
ing problems up balance of pay- 
ments capital account, interest 
rates are not expected to decline 
sharply during the year. 

On the hank's capital base the 
chairman is ambiguous. Slanbic's 


The U.S. bills are of less 
(ban one year's maturity, with 
most of them falling due in 
Iwo to 10 days. 

Tbe bank has started to 
extend list money market 
operations to oversells markets 
in spile of the recent upsurge 


plans indicate ihat no further in lhe ven The ,, ank is a [ m . 
capital will be required in thej ing a ‘ t wlilenin^ interest 
current nine months to Deccm-l n, ar3 j as . While short-term 
ber. But tbe growth of business | i ntcresl 0 f the US. have 


Prices of steel produced by m- increase : 
tegrated steel plants, as distinct .fixed a ul 
front small electric arc furnaces for TISC 
known in this country as mini- means tha 
steel plants, are controlled by the divide 
the Government. The consumer 12 per'ee 
urices of steel at ail major the surplt 
centres in the country are urn- will have 


prices of steel at all major the surplus after, appropriation^ ,.^ t-p^era! res^W to pay V tO-- . Tha /nigp *mvL<g>g.y ' ^ 
centres in the country are uhi- will have to be Qansferred-w-,^p CT Ceri ( divideBd'f0r:Jftiat ^3r' v I nQrjf<rtf 

girtfv rirs r&.'ssz, 

:r srEsFysrsz s 

making j provision for excise duty 1876-77. and sold 1.62m- tonnes, Rs; 100 
and freight, whteh together work drawing . down the - stocks which wig. 

out to more than a quarter o£ accumulated last year f oUowing^modernlsa^^of % 

ihe consumer price. recession in , the engineering: Industry. Unlflco tbe modernise t6 2 ul *. 


and stock market conditions “will j |, crn rising, interest levels in fi_ * — T/ 7 y. y. -, ' ' «■ rf j’v’irst' 

s-jnLsu «t Sharp nse at Hoor Industries 

MntinnaL the other UK-controlled I 1 -At- -- - •• . ' :S<t . -. -/ : - -'*■ ' 




r '-tt* " 




National, the other UK-controlled 
hank here. Slanbic's parent now 
holding 63 per cent of lhe local 
company, has to reduce its slake 
to 50 per cent by 19S5. 


Sime Darby units in $9m deal 


BY WONG SULONG 

TWO SUBSIDIARIES of Sime 
Darby Holdings — Kempes 
Berhad. Lingui Developments — 
have reached agreement to dis- 
pose nf their shares in [heir 
parent company, for more than 
2 1 tn ringgits to I most U.S.S9mt. 
thereby resolving the problem 
arising from their Inability in 
receive the recent scrip issue 
made b\ Sime. 

Kempes and Linsui respec- 
tively held some 4.7m and 70.000 
shares in Sime Darby, which 
recently announced a one-for-one 
scrip issue. But because of the 
UK Companies Act regulations 
Sime cannot issue the extra scrip 
to its two subsidiaries. 


The two subsidiaries today- 
41 anon need that they have now 
sold their Sime Darby shares, 
including their right tQ the scrip 
issue to Permodalan Nasioaal 
Berhad. for a cash consideration 
of 21.516m ringgits. This works 
out at 2.225 ringgits per share. 

Permodalan Nasionai Berhad is 
a subsidiary of the Buuiiputra 
Investment Foundation, which 
tbe Malaysian Government 
launched two months ago. with 
an initial allocation of 200m 
ringgits. The foundation was 
formed to buy up shares reserved 
for Malays, and hold them in 
trust, to give the Malays greater 
participation in the. Malaysian 
corporate sector. 


KUALA LUMPUR. June 27. 
The purchase means th 


many ami Switzerland — against 
the background of (he scries of 
official discount rate cuts In 
the past year. 

In order to protect itself 
against ’the sharp rise in the 
yen in the foreign exchange 
markets. I he bank listed the 
rclurn in advance by operating 
in lhe forward market. In the 
Tokyo foreign exchange 
market. Ihe yen reached its 
peak at lhe beginning of this 
week, at Y205.10 to the dollar, 
and in llic forward market 


PermodaJaD Nasionai how holds commands a premium over the 
9.55in shares of Sime, making spot rale. 


Goodwood Park Hotel 


BY H. F. LEE 

GROUP PROFIT hefore tax of 
Goodwood Park Hotel. Singa- 
pore’s biggest hotel chain, 
declined by ll per cent to 
S?2.3in iU.S.Slnn in the half 
year to March. The downturn 
look place in spite of a 3 per 
rent improvement in turnover to 
S3 17.Sm (US* 7.7m). 

The parent company, which 
operates one of Singapore's 
oldest hotels, however, turned 
in a much improved performance. 
Fre-lax profit was up 7.5 per cent 
to SS j .5m on an 11 per cent 
improvement in turnover to 
Ss 6.4m. 


SINGAPORE. June 27. 

Hotel Malaysia and Ming Court 
Hotel also returned better 

results. - 

Hotel Malaysia registered \he 
sharpest gain with pre-tax profit 
rising by 135 per cent to 
SS 603,232 despite a mere 2 per 
cent increase in turnover to 
SS 3.09m. 

Afiog. Court Hotel reported a 
10.S per cent increase in pre-tax 
profit to SS 855.840 on a 7.6 per 
cent increase in turnover to 
SS 6.11m. 

The group has interests in 
property, printing, entertainment 
and inventions, as well as hotels. 


it one of the major shareholders. 
Applications for these shares to j 
be listed in the various exchanges I 
are being made. 


Wilkinson Rubber Process 
Company has reported a 17 per 
cent increase in profit for the 
half-year ending March, and is 
making a one-for-four scrip issue. 
Wong Sulong writes from Kuala 
Lumps. 

Tbe company, which manufac- 
tures rubber products for the 
mining industry, recorded anj 
after-tax profit of just over lm 
ringgits (U.S.8420,000) for the 
first half of its financial year, on 
a 15 per cent increase in turn- 
over of 7.84m ringgits 
<U.S43.3m>. 

The company says that the 


In the interbank market, the 
premium on yen for delivery 
one month forward has lately 
been o*er 5 per cent. This 
premium would effectively 
eliminate the yield margin on 
U.S. Treasury -fail] How- 
ever. the hank was able to 
arrange exchange swaps on 
favourable terms because of 
the size of its transactions and 
heavy competition between 
banks dealing in foreign 
exchange. 

The rate on three-month 
Japanese bills was around 5225 
per cent in January, against 
the 64 per cent on ihe three- 
month U.S. Treasury bills, 
which left an interest spread 
of about 1.2 per cent How- 
ever. the rale on Japanese bills 
has declined to around 4.73 per 


BY L DANIEL . ’ . ' v 

KOOR INDUSTRIES— the lffo- 50 per cent or more) came tcr au ce ' 

factory bolding company of the I £13 bn — a nominal growth of 66 1876 to I £20 on (3L.lboy.tn; 

Israel Labour Federation — per cent and -a- real one In L. DanieLwntes from ;T^^»T^J 
reports a 75 per cent rise in its inflation terms of 11 per cent. Premium in&Kne_ioCTeas^d -oyi 
pre-tax profit during 1977 to Kooris exports in 1977 43 per cent to' I£322.3ni, vwiiei 

I £5 77m (S33ml — an increase in to $260m and a further increase.-pr emium5 m E ^P ect ®J* ,neiL ' 
i real terms of 30 per cent if has been recorded duri ng the tary mfa ara^e.^rose. by .47 per! 
inflation is taken into account, first half of this year, when to I £4 26.6 m. 

The profit represents 6.3 per exports came to oearly- S15Cto— • ’ Total pre-tax pnmtsy including I 
cent return on a turnover of a 20 per cent on tbe same * revaluation - of imKeci -.niyeSH 
l£9“bn (8525.7m) as compared months of 1977. Overall turn- »emts which were. not. reallsea. 
with 4.9 per cent on a turnover over increased by 63 per cent is stood at I£86pi. - i 

of l£6.7bn in 1976. according to the January -June period of tbis There wilt be no cash dividend 
Koor director Mr. N. BlumenthaJ. year as compared with the first ^ut a 100 per cent bonus .fiharej 
Profit after tax amounted to half of 1977. - issue. • ' * : . -• '] 

!£324m compared with only The concern intends to in- Reserves for we ^ insurance; 
I£ll5ni in 1976. About half of crease Its investments tbis yeat increased by some 'l£80Qm to 
the net profit was derived from by 50 per cent over 1977 to a J*Ubn. r!PK—.*£E! ld ^*.i2 a 
industrial (home market and total of I£900m. . reserves totalled I£l »5bn— a gtdnj 

export) sales, with the remainder . . . of 56 per cent over^l976. ^ Z 

accounted for by the sale of * * Holders of fixed me insurance 

securities (I£70m), and opera- Migdal Blnyan — the Israeli insure policies are to receive a bonus 
lions of the concern's trading a nee company with tbe largest on August 1 with the- ammmjto j 
companies. mainly abroad life portfolio and overall second be paid out coming, to I£225m. j 
(l€30m). . in size only to Hassneh Insnr- Life insurance activities were 

The consolidated balance sheet ance Company of Israel which is responsible for l£23m . of profits 
total (which includes only those owned by tbe Labour Federation and elementary insurance • for! 
companies in which Koor holds —reports a rise in its life insur- another I£2.7m. • .: v-. 

CSR sees year of consolidation 

BY JAMES FORTH 


' 'A -C'-Xf! ^a^rV^-'Si 

VByOarpwn: 


TWO. LAW6 to /Stimulated 
meats • tit- ' Israeli* ; «ndiiMc; 

abilhar of ^'mfihufaetnOT^.c 
try^ cam pared, with thsi of 
services, trade-ana etiaste 
HSeS. jtrter - pit 

.T%is - 'law .provides 
redttct&m Jof campany t tia 


scrip issue would be made out of j cent, while that on UA three- 


its general reserves account. It month bilb b about 6.6 per 
also intends to increase its share cent, so that the differential 
capital from 10m ringgits to 20m { has widened to about 2 per 
ringgits. cenL 

Although the first half year 
profits were buoyant, the com- Moriro 

pany points out that the second x UKIU Dianne 
half results arc not expected to Tokia Marine and 
match those of the second half ance Company afti 
of last year. fell 174 per cent. 


Tokia Marine and Fire Insur- 
ance Company after tax profit 
fell 174 per cent, in after-tax 


As such, profit for the current i profit for the year to March 31. 
year would be in line with that | to Y16.17bn (378.5m). from 
of last year (2m ringgits) and, Yl9.5Sbn in the previous year, 
the level of dividend will be. Reuter reports from Tokyo, 
reduced in line with Ihe increase i The dhidend is reduced io 
in capital. 1 Y5 a share from Y5.5. 


This announcement appears as a matter of record only , 








STATE OF ESPIRITO SANTO 

U.S. $10,000,000 MEDIUM TERM LOAN 

Guaranteed by 

The Federative Republic of Brazil 

arranged by 


Europ^s& Brasaijm Basic Limited 
:ift?i>ELROBRAZ 

.** • » v . u; .< .* 

; r. 

provided by 

Bank of Tokyo and Detroit (International} Limited 
The Bank of Yokohama Limited 

European Brazilian Bank Limited - EUROBRAZ 
International Commercial Bank Limited 

PKbanken International (Luxembourg) S.A. 

The Sumitomo Trust and Banking Co., Ltd. 


BY JAMES FORTH 

CSR. the major sugar, minerals, 
building products, chemical and 
pastoral group, expects that 
capital expenditure in 197B-79 
will' be lower than ’ A$93m 
lU.S.S107m) spent in the yeat 
to March 31. In- their report with 
the accounts the CSR directors 
said the group was however, 
pressing on with major invest- 
ment programmes. Tbe AS93m 
capita | expenditure in 1977-78 
was itself about 9 per cent less 
than in the previous year. Tbe 
directors said the group was 
reasonably liquid and that the 
cash [low was substantial. 

The year ahead should be one 
of consolidation with slightly 
lower gearing and other financial 
ratios improved. Tbe Board saw 
no immediate need to seek new 
equity unless some unexpected 
and profitable opportunity 
emerged. It was expected that 
holders of AS22.4m oF deben- 
tures maturing in September 
would be given the opportunity 
to convert to new CSR 
securities. 

As previously reported. CSR 
lifted profits almost 7 per cent, 
to AS43fim in 1977-78, with the 
principal contribution coming 
from the minerals and chemicals 
division. 


Referring to the minerals profit of AS6m. CoaV sb^pmentol 
division tbe directors disclosed totalled 1225Sm tonnes aPrf the 
that Pilbara Iron Ufted ; profits /cam pany now^ad tjm capaclty . to' 
by AS2An to ASI4-7m. CSR produce 2 -3jn tamje&a,y&^. v-X 

owns 68 per cent of Pilbara Iron, ' ^Gove-Affttmiiia^ whicht is;51j pec 
which in turn has a 30 per cent cedt Owned by ,CSR. ,aitdv haB ? a 
interest in the Mount Ifewman- 39 per cent interest. in the^Covs 
iron ore operation. The direc- bauxitealumina. u -venture'' in 
tors said that tbe Mount Newman Queensland, earned a higher 
associates had. deferred pre- profit of A$7m. Gove Alumina 
viously contemplated expansion and Swiss ' AlumShdum . Were 
of the project from the present undertaking investigations and 
capacity of 20m tonnes of iron studies dnto the possibility of 
ore a year to 45m tonnes, but establishing . an aluminium 
that construction of a AJIOOm smelter in Australia, 
heavy media beneficiation plant Referring to the Hail Creek 
was proceeding. coking coaLproject inQueensIand, 

The Japanese steel mills had in which CSR controls a 54' per 
indicated that they would be cent interest through;ite AWfrfinr 
unable in the current year 10 takeover last year' of 83 per cent 
lake all the iron ore for which of AAR. the directors said Aral 
they had contracted but had it would be some years before 
given assurances that the steel markets recovered and 
Australian share of this market development became feasible, 
would be maintained .at 48 to 50 But the carrying costs in the 
per cent. meantime would not be burden- 

Total shipments by Mount some. The project involved a 
Newman in the current year were mine capable of ' producing - 4.5m 
expected to be about the same as tonnes of coal a year. - - - - 
in 1977-78, but the joint venture Studies were bemg undertaken 
was in a good position to exploit to determine the potential . for 
increased shipment opportunities development of the steaming coal 
which were expected as the reserves at Theodore (14240m 
world economy recovered. tonnes, and 425 per cent- owned 
The coal offshoot, Buchanan by AAR) anfl Taroom (125m 
Borehole Collieries (93^65 per tonnes and 85 per cent owned by 
cent owned by CSR) earned a AAR). ... 


Mith 


reinvested in’ means -bf-s 
iioti. Costs . irxhifred : " 
coital . on the ,stojdP- 
ore . fa-future to be 
a& ; . business' expense' 
mare,.w- industrial 
'receive ^ tax ' ” 
rifjha'papei 
Invcntdnes' which 
tion^- They will . 
to depreciate 
.meut-withm 
to pro vide. them _wi 
required . to increas e , _ „ 
exports.; :- ." •• . :: V/. ’• 

’ .Hese-.prbposedl 
ebsf: the -Treasury 1 

^Che- smmd^Iaw Is 

- beMfify o5ei 
hrvtefOT^- TtP' inflnstxfeL? 
Ehfeipiises'appruv^ 
to^fPr.The^ - 

capitaL -.Sives r . 

exempted from Income ; 
the^ fixstfiveyears.^^:^ 

1 Mew 'plants in Gxa> ... 
-velqpment areas are t 
of# per cent of the . 
ment end a. further » 
in ktans at 20 per cent . 
si k/yr rate in • 
the uhtosed gaiL — 
bonds tinked.-w the., 
dnqex cdomato'^hotit, 
at-r the^cnfrSht ’rate, < _ 

Commercial bank 
ward'bf 30 per cent. I 
and- loans ;v 
GJms B dev- 
plants in th 

tiy are to get a 30 per. 
on. condition that, -at 
quarter of the output 
In add£tian,-;the: la“ 
company tax at tb- 
40 per cent Finally^ new' 
prises wifi. be afiowe 
ciate tjieir.butidlngs 
years,- according to fl 
of Internal Revenui^.- 
Neodbrftur.. ' . . . - r- -'. 


Agent: European Brazilian Bank Limited - EUROBRAZ 


STRAIGHTS 

Akim AuiiraHa Si pc 1SS9 

AMEV Spc J«7 

Auiiirulia Sipc 19D'i .. 

Ausiralun M 4 S. VJ 

BjMjj-s Bjnfc s:dc 

Ba’vaJcr 3. pi- IWJ 

Cjm m rjij win- a: pc toss 
Credit Natlntial SlPc 1386... 

Duoiiurk S!pc 13W 

ECS Spc 399.-; 

tes s;r»c 1097 

EIB s;pc 1992 

KM I 34 nc 1989 

ITTirvwn sipc 1030 

E.S.SO Spc 1986 Nov. . 
i;r l.ah'-s Hapcr s. B c 10 M 
HamcrsIi'V o:pc iwj 
llrdro Ouritcc 9pc 109-.' ... 

in $4 pc iosr ... 

ist: Cinwii “Spc i>*jn ... . 
Miunilljn BIqcUl- 1 Pyc lOrrj 
Mj'vi Fcr^ooiiii a; pc di 
o:<.c |98> .. .. 

Midl.ind lm l-m. s;pc n 
Xdiion.il Co.it M Spc 19S7 
Vaiiaiial Witmusir. «jpc ’Sfi 
XjTl. W^minsir. 9 pc >6 *B* 
N>.-.tfoun<11aiKi Ope IB38 
North Inc. Ek. 8 :pc 1985 
Norj.-s Korn. Rk. sipc I99J 

Norprpc S'pc 19S9 

Norsk Hydm Sipc 193 - - ... 

'■isto Ope ISM 

Ports Auinruinics 9pc I93t 
Prov. Quohi-r Opc 19M 
Prgv. S'pskm-.holi. S;pc '86 
K« <-i I international Spc JSS7 

RHR1 Opc t».' 

Sc led tow Trust SIPC t9S9 .. 
Shn-ll Inti. l-m. Sipc 191HI .. 
sk.iwl. Knskildj 9nc 1901... 
«KK Spc 1«7 
Kwi il' ii > K'ltum' Sipc 1987 

United r.tscinii Spc 19S3 ... 

\V>Wu spc 1987 March 

NOTES 

Ansi r.i iia 7:m: 1W1 

ra-ll Caiudrf 74 Dc 1057 

I-r. Columbia iiyii. 7,'pc ’ST» 

‘'.mi. pac. s;nc tost 

P”-a rh-mii ?\ Spc I9&; ... 
Krs 7:uc 9V2 . . . 

Rnsu lim/i'U Strv IKt ... 

■ •niaiivrki'ii 7?|b- I'JS'J . . 
Kiw+imi', 19 c .;l . 

’.tn In-tm S iw- 10's: 

Monm-al l.irh.m s.it- 1331 
NVw kmawn-k Spc 19SI . . 
Ni-u- krnns. Pmv. Sine ‘W 
.\<-w Zealand s;pn pisu 
Xonii-.. Inv. Blr 7?p.- 1954 

’.‘ercl! Rf.lro 7!pc I9s2 

Norway 7|pc 195-j 

■tiitiino Hydro ?PC 1387 ... 

Sinei-r SJpc (332 — 

S. nf Sew. P.lcc. S'. in; 1981 
Swi-ib-n iK'fiomi i^pr 3063 
Swnltsh sidle Tn. 7 4 pc “S3 
T- inn's nine 1?rt ....... 

Trnrnso )‘.pc 1087 May ... 
VoMrsH-p m.ii 7'w 1K7 ...... 

STERLING BONDS 
. 1Hfc.it Brm rh".- iu;o-.- Dii 
rilui»rp Ikpi 11W:'. 

Cuiirijniii8 a dc n*>9 ... 

PCS O.ni- .9V 

KIR o.nc ibvi 

kib o:pc too: . . .. 
Finaihi' tnr liui 9: pi; 1937 
Fuuncc Tnr Itnl. I Opc I0o3 

Tlvuld I04pr Kli? 

0i8iciiii-r Unc -loss 

I'iA Ulpc 10 >9 

nnwnlrcr- in{|n- 10 A-- 

S jir.-, ill ip.- i*sS 

Tai-i Oil Sipc I5S1 


SELECTED EURODOLLAR BOND PRICES 
MID-DAY INDICATIONS ^ 


DM BONDS 

Asian Dev. Bank 5}pc 1338 

BNDE pc 1386 

Canada 4.’pc t9S3 _ 

Den Norskc Id. Bk. 6 pc *80 
Dcutscb-; Bunk 4gpc 1883. „ 

ECS 5Jpc 1990 

lilB 54 pc 1W0 

Eir Anmraine Sipc 198S ... 

Kuraiom 5Jpc 1887 

Klnland 5; pc 198C 

Ko remarks 33pc 1900 

Mexico 6pc 1035 

Non.-t.-m Si dc 19S9 ... 

Norway •ilpc 1933 

Norway t$RJ 

PK Bankc-n SIw; 19S8 

Prov. Quebec Gdc 3990 

RantanrahJii Sipc 1988 

Spain 6 pc 1888 


Trondheim 54pc 1BS8 9fi 

Tvo Power Co. 8 dc 1088 MJ 
Venezuela 6 dc 1988 Mi 

FLOATING RATE NOTE5 
Bank of Tokyo 1884 SJpc... 99} 

BFCB 1084 81pc -«9J 

BNP 1983 81 16 DC ; , -3011} 

BQE Worms USB Spc SSi 

CCF 1385 Sipc 99 

CGMP 1984 Snifipc 99} 

Creditanstalt US4 Sipc 99 

DC Bank 19S3 SBC 100 . 

CSSB IBS1 81 upc 991 

Inti. Westminster 1984 Spc '991. 
Lloyds 1988 8l3»pc 108J 

LTCB 1983 Spc - 99} 

Midland 1087 89igpc ......... tti 

Natl. Wstronstr. VO 95upc 99} 
OKB 19S3 7JPC _..... 991 


-^SBCFi KWT 8Mc n-JaSKw 
’• Stand.'IAntfriaunr. WSlpc 39}V-:- W 
. . ' 'c -f Scarce; WldteTFea^ecffliiteBi r. ; 
- CONVEHTIHLES: 

.-iAnKTiaut Sxpresa ^lpeL'gl . Xi” 
; AsUana 9 pc -USS r».^ 

r BaBowSc & WUcax Stjuf ’WT 3S»: K#S 
t BaaMce FoodB 4 }dc 
}. ■ Beairlce foods ao^UJOU. 

t : Bceaurnf abc W»V-r..w ' 

. : BordMi; SBC- 1993 ..-...'iwi-'-v'-'l?: 
Broadway; Hale 4Jpc U874 ^- ' -- -£ 
. .Can>Mton:4pd 

r Chevron 1 5 pc - USS - ' * Iffl-— . Tig 
r Dan. 45ne »8» ■ A.-. A AS. ■ 

' Eastman . Kodak 4} pc :i3S3 • 

1 . .JZBKHnnic Lahfc. tipc.uerc . 33 . 

r Plrtstoire . 

Ford 5oc 1BS8 

} Ccncml Efc^c ofecTBsT 

I GOlerte 4Jpc 18S7 j.. , Jtt .jS 

■ Gonld. 3PC 1B37 .._2. ..-A. -i S 
1 Golf. lmtf Western- 6pe 1388 

• Harris 3pc T89S. '--i r.:1w 

I. Hdnwell bpc IKS 

: . iGL.aw.am 

• . ; * ' Soured!' KSifito-. Pmdndy SW®?!?- 

- M ... - - 1 


These certificates have been sold. TMsnnwmxatast appears as- dvtta^r qfreaird enij. 


New Issue 




1 

□ 



J 

L 

>a 

H1 Kc 4 




Limited : ' 

: (London Branch) 

N^otiablc Floating Rate Certificates f 

Maturity Cate 29 June, 1981 ■ 

Arraggeetb? ' ' * v 

Orion Bank:Liniite(|^^^^^gv- 






Financial Times Wednesday June 2S 1978 


' 7 A R M I N D R A\V M AT TRlATS^ 




Commodity 
pact talks 
frustrated 




Fraud charge 
halts U.S. 
stockpile sales 


GENEVA, June 27, 

ATTEMPTS TO set up a svstem 
for stabilising world commodity 
prices under- the auspices of the 
United Nations have yielded i 

almost no result and agreement j tup »• c #■ . 

cannot be reached by the end of i 111, General Services inspector-general to probe the 

this year — the original target) Adm ‘nitration is suspending alleged fraud, 

date. It might have to be moved i saS 6s of tin and some other com- The main charges Involve 
io the end of next year. , taodilies pendin ’ review of sales a,J eged inflated prices paid to 

This is the cod elusion of si methods, rcoorn Reuter from t- ? nlra ctors. sometimes for non- 

*nnrt V,, *V_ :JII ' ^Porrs rveuier from „ XIsr „ n ,. j 0 b s an d kickbacks 


report issued by the secretariat Wa « hi noton 1 distent 

of the UN Conference on Trade waiDin S lon - accepted from contractors by 

The suspension was said to GSA employees, 
be connected with allegations of Our Commodities Staff writes: 
widespread fraud in the GSA. Asarco. the big U.S. mein I pro- 
al though they noted there had ducer, will not be delivering 
been no specific allegations copper cathodes from its Ho, 


and Development (UNCTAD), 
which in 1976 sponsored the plan 
for an •• integrated programme " 
of international commodity ; 

stabi]isation_agreements. 


The report said the only inter- regarding commodity sales. Peru, operation to its European 
national agreement which' had! Other commodities affected by cus tomers in July. The company 


been concluded since the nro»|ihe suspension are mica, natural announced yesterday that it had 

_ , . . •_ V... . . • - . rhA fA.AA am 


gramme was launched was "the ! battery grade manganese dioxide, extended the force majeurc on 
one governing sugar. The pro- j metallurgical grade manganese Hocathoaes for another month, 
cram me cnvpra 17 nthm- «n«n. ! dtp Quartz rrvsral*;. and rare Production problems at the 


gramme covers 17 other com- \ ore. quartz crystals, and rare 
modi ties. Some progress badl earl * 1 - 

been made with tea and natural; GSA sales of other commodi- 
rubber, ; ties, including gold (for the 


- 


'Emulate 
1 


Pending the outcome of the 
negotiations on the common 
fund, the discussions on indivi- 
dual commodities are taking 

place in a vacuum as far as the 

sources of finance for stocks and 'for fraud, 
other measures are concerned.”! Yesterday’s 


Treasury), tungsten and mer- 
cury, are not affected, the sources 
said, noting these items were 


C.ovcrninem-run refinery which 
converts Asarco copper concen- 
trate into metal arc believed to 
he responsible for the suspension 
or shipments 

Some analysts have suggested 
that a three-week strike at the 


Negotiations on the fund, 
attended by 106 countries, broke 
down last December after four 
weeks when Asian, African and 
Latin American nations com- 
plained it was “utterly futile 


sublet* tn m|» he rnmnpnlivp a uiree-weeK strut? at me 

3KSAA VS -SUE 

Others blamed technical difli- 
daily cutties at the refinery which had 


GSA 


scheduled 


. lin offering was included i^d copper coming out at 
,n _| he suspeniion. "much lower than the specified 

There are only 73 long tons grade.” Peruvian sources have 
of grade ** B ” tin in the GSA said vandalism and mismanage- 
stockpile. although there is ment have been responsible for 


to continue beeause some Indus- ! ! e ih» J ation before Congress seek- the poor-quality copper, 
trial ised states lacked the li,e . sa * e of a European and Japanese teeb- 

potitical will to agree ou The 1 Iu ™ T Pr * ja - TO0 lon E tons. nicians arc believed to be sludy- 

There was no indication how’ ing the refinery's problems but 
long the suspension would last, one analyst has forecast that 
Mr. Vince Alto, from the Justice shipments will not restart before 
Department, has been appointed September. 


fund's basic features. 
Renter 


Silver output 
rise forecast 


cm 


WASHINGTON, June 27. 
MEXICO. CANADA, the U.S. the 
Soviet Union and other silver- 
producing countries are expected 
to push world production up to 
about 356.7m troy ounces by 1981, 
the Silver Institute says, reports 
AP-Dow Jones. 

Hie production forecast— 11 
per cent, higher than last year's 
world silver 'output of about 
320.4m troy ounces — was made 
by the industry group with the 
co-operation of mining companies 
and refiners in 36 countries. 

According to the group, 
Mexico ranks as the world’s 
biggest silver-producer — its 
. mines produced about 47m troy 
ounces last year. The Soviet 
.Union ranked- second, with 45m 
troy ounces, followed by Canada 
(43.8m) and the U.S. (3&2m).. 

Other important silver produc- 
ing countries include Peru, Aus- 
tralia, Poland and Japan. 

The projections, the report 
said, are that these eight 
countries will account for 83 per 
oentof the world’s production of 
_ newly mined silver in 1981 com- 
pared with SI per cent last year. 



U.S. probes 
‘dumped’ 
sugar claim 


PARKS COMMODITY MARKETS 


By Our Commodities Staff 
TUE U.S. Treasury ij, ini esti- 
mating charges that Common 
Market beet sugar is being 
dumped in the U.S. with the 
help of high export subsidies. 



ow road to recovery 


BY JOHN EDWARDS, COMMODITIES EDITOR 


during the great 


I HOW ARE Paris commodity of rradiot* activity on the Paris that the world trend in cane and disaster which hit the dominant 

! futures markets recovering after markets was slow. beet sugar output was towards sugar contract, should be boosted 

1 the '■disaster” at the end of 1974 Some trading houses who white sugar production. as well by the growing imnort- 

' u Hon™’ suffered severe losses in 1974 A „ ami4 , inr , ,. ni . Ar ante or the Ivory Coast and 

ugjr boom, v...^ cat* Attempting 10 cover white Caraernons, former French 

mar trades h« hnriglLg IQ the colonies 
contracts :n 

can be But the key for ihe future lies 

about shipments ot istcoert j announced Lhat it was unable lo Worthin'- to'do withParis*' a dangerous business, since at in whether confidence in the 

totalling 50,000 tons being , meet j ts commitments and manv *' u - ,mu ‘=‘ lo rdris - times prices in the two markets trade, and among speculators, 

landed in Savannab, Georgia. I , ;< ,m panics, who suffered severe But M. Ribac pointed out that can move iu opposite directions, has been restored. 

If the complaint Is found I lojaes. vowed they would never there has been a restructuring of A white sugar futures market is, „ 

valid the. Trea-.nr> - might | OQ French markets again, the Pans markets since 1974. therefore, urgently needed. provide liqufdity to a successful 

The impression given at the Caisse de Liquidation bas There are rumours that London futures market. has been 
annual dinner in Paris last Fri- ***“ re?!ace . d a °g w is considering a white sugar dampened bv doubts about 

dav of the Compagnic des Com- bouse organisation— Ceirtrale de market, despite its abortive effort whether the new capital "ain* 

nussionaires Agrees— brokers Compensation. This is a consor- W fth differential market over tax will applv ro commodities a? 

association — was lhat everything tium made up of the leading the raw sugar contract which W ell as share® A ban- on 

was going well. French banks, including many failed to attract sufficient in- discretionary trading on the 

The Pavilion iTArmenonvilie S*™ 01 *?, Dames. Significantly terest. Paris markets has not helped 

UX. 010 . i was crowded, including many f™" 1 But Paris, with long experience either. 

The London daily price for j visitors from London and the * 10 cent is Mia ny j n white sugar trading, should be T , , hftl)l .j he nn rtm.hi 

raws was raised io (be morn- i New York markets. The dinner ft.* „ the prime market if sufficient hl ™"L *51 

ine bv J to £96 a tonne Whites a !a French fashion started a Cleano* House, which provides confidence can be restored. however, that the Paris rnarkc, 

were unehanced at flhi Load It hours lale and the tiie clearing nouse facilities for e is a different entity to what u 

vi re changed 10a. [ en'eme cordicLj v.as flolwing the London “ 60 ft" (non-metal) The Pans futures markets in was before 1974. even if there ar>.- 

! ‘ ' commodity futures markets as cocoa and coffee, also hit by the still some familiar faces. 

_ Eut m real , mains on the weJ1 as fumres trading in Hong 

, Paris futures markets is picking K ong and Svdney. 

• up slowly. As '-a: french sugar ' 


impose countervailing duties 
to cancel ont lbe effects of 
EEC export subsidies. 

In the London market future 
prices rose later in the day, 
helped by a steady opening in 
New York. October sugar 
closed £1.45 a tonne higher at 
£101.075. 


S. Korea bids 
for bigger 
NZ fish quota 


Irader put it- there is an urgent There was, therefore, no yj* i , . , • , 

need for the pump to be primed question of a repetition of the iSlU tO CUl ST 31 II CTOD W8SI6 
iieforc the market can really get 1974 situation. ° * 


going again. 


Addins io the Paris recovery 


By Roger Boyes 


Ten-fold rise in UK 
grain export income 


BY CHRISTOPHER PARKES 


BRITAIN’S EARNINGS from 
exports of farm produce- have 
risen more than 70 per cent in 
the first five months of the year. 
A 10-fold rise in Income from 
cereals and a four-fold increase 
in the value of exports of fruit 
and vegetables have helped com- 
pensate for a less sensational per- 
formance by other sectors- of the 
agricultural export trade. 

According to the British 
Agricultural Export Council 
sales abroad of farm equipment, 
chemicals and produce -in the 
first five months were worth 
£S59m— 27 per cent more than 
in the same period last year. 

But the breakdown of the 
figure shows a slump in sales of 
farm chemicals and feedlngstnffs. 
Between January and May last 
year this trade earned £l33m. In 
the comparable period this year, 
earnings are 9.3 per cent lower at 
£ 120.4m. 


Exports of farm machinery 
were worth only 3.S per cent 
more at £295.3m — a result which 
appears to indicate a fall in 
volume sales. 

Only produce exporters bad -a 
clearly successful start to the 
year, earning £S59m in foreign 
exchange, compared with £257m 
in tbe first five months of last 
year. 

Exports of cereals were worth 
£124.5m compared with £12.9m 
last season. Dairy produce sales 
were worth £65m comnared with 
£35 ra last year. 

The value of live animal 
exports rose 52 per cent meat 
was up 26 per cent, and exports 
of eggs increased 50 per cenL 

Tbe only black spot was in 
the wool market Exports of 
wool and animal hair earned only 
£46ra — 20 per cent less than the 
£64m earned in the comparable 
period last year. 


Dai Hayward 

WELLINGTON. June 27. 

SOUTH KOREA wa 
allocation of New 
ing resources. It has offered an 
increased market for New 
Zealand beef in return. 

Only South Korea and Russia 


• „ ■K-„H°w. d Eav;p r >‘ 1 fho Pa?i< f!o°[p problems has been tbe fact that THE Soviet Communist Party is servicing of tractors and combine 
I th ' 5u ? ar J market has been urgmE Russian farm worters t0 harvesters. 

! for’thc trade at the miment Ter “5“$ f'.ShS/pricS speed up preparations for this 


The articles made frequent 
year’s harvest in a bid to reduce reference to a decree issued in 
crop wastage and Pravda at the beginning of June 
enmopncife fnr Her vpai-’o rii-s. which set out Ihe necessary 
market but difficult to sell. But in the long term, M. Ribac * ^ . lasr ye ff s ‘ preparations for bringing in the 

another Londem-hased trader argued, white, as opposed to raw, a PP oirmn S grain production. harvest and meeting state 

commented. sugar trading is likely to grow During the past week Soviet purchase targets. 


nnVnn 1 undertaking hedging transactions " d “^“and SngSsTa ^ar’s harvest 
• ants a bigger j si nee volume too &maU. It . kb substantial c 

Zealand’s fish- ! was easy to buy on me Pans * enmopncifp A 


M. Albert Ribac. vice-president “ importance and the Paris newspapers have published Cold weather and persistent 


, ill. r - - ■ - , ■ , • . ", . MV unit nvuiuci «UU 

are permitted to fish in New i 0 f ^he Compagnic des Commis- ' v “icn provides the only articles calling for better use of rain has hampered the sowing of 


Zealand's 200-mile zone. Japan's 
fishing fleet was banned from 
April 1 because of restrictions 
against New Zealand bee.f and 
dairy exports. 

Korea is allowed to qatch 
32,000 tonnes. It would like to 
take 50.000 tonnes. 

In an approach to tbe New 
Zealand Government Korea has 
pointed out it imported the first 
New Zealand beef in 1976. 

Beef imports from New 
Zealand and Australia have 
grown from L000 tonnes to 40,000 
tonnes in three years. Korea 
could take more beef next year 
if its fish allocation was 
increased. 

Tbe Korean offer comes on 
the eve of talks in Wellington 
between Mr. Ichiro Nakagawu. 
the Japanese Agriculture 
Minister. and Mr. Robert 
Muldoon, the New Zealand Prime 
Minister. Mr. Nakagawa will 
explain the final Japanese Gov- 
ernment position on the trade 
dispute between the two 
countries. 

Mr. Muldoon hopes the 
Japanese will offer improved 
access for New Zealand beef arid 
butter in return for fishing 
rights. 


sionnaires Agfv«£ und president racimv to nea^e a e amst price machinery and fertilisers and grain and other spring crips in 
of Jean Lion Cie, one of the lead- fluctuations in white sugar, will both the agricultural daily key areas such as the Ukraine, 
in® French sugar traders, which come into its own. He said that Selskaya Zhizn and the Com- 'Weeds, pests and crop diseases 
was badly bit by the 1974 port refining of cane sugar munist • Party daily Pravda have also caused concern to 
disaster, confirmed that recovery would become “obsolete" and criticised workers for the poor Soviet planners. 


Special pleading for British farming 


BY JOHN CHERR1NGTON, AGRICULTURE CORRESPONDENT 


AS PART of a survey of British 
foreign policy to 1985 the Royal 
Institute of International Affairs 
has published a paper on the 
agricultural options by Asher 
Winegarten and John Malcolm of 
the National Farmers L'nion. The 
views expressed are to some 
extent special pleading for the 
NFU’s case of British farming, 
irrespective of the fact that 
Britain is now a member of the 
European Community, and farm- 
ing policy is the responsibility of 
the Council of Ministers. 

In their assessment the authors 
point out that although food 
prices have risen due to Com- 
munity membership, this has 
ensured stability of supplies and 
avoided the sort of shortfalls 
which happened in grain in 
1972-73 and sugar in 1974. 


They trot out the old argument 
of tiie increasing papulations 
and the need for ample food 
stocks to feed them, bat do 
not analyse sufficiently tbe 
fact that for the last three years 
grain, milk, sugar and some 
meat supplies have been a drag 
on the market, and could have 
been purchased at about two- 
thirds of EEC prices. The sur- 
pluses are only stopped from 
getting larger due to restrictive 
policies in tbe U.S. and other 
countries. 

The authors say there is no 
world market for many of these 
foods. There is an element of 
truth in this, but the cause is 
that very few countries will buy, 
and others led by the EEC dump 
their surpluses on what is left. 


Everything can be sold and 
bought at a price. 

But the authors suggest 
alterations to British farming 
within the Community which 
would certainly annoy our 
partners. The recommendation 
that milk production should be 
increased, when the overall 
output of the Nine is 17 per 
cent above prospective demand, 
is justified by the claim that 
British dairying is more efficient. 

There is no evidence of this 
except in the field of labour 
use. 

They also suggest that sugar 
output should be significantly 
increased in spite of the fact 
that the Community has a sizable 
surplus, and would have, even 


if Commonwealth sugar- were to 
be excluded. 

What the authors really seem 
to want is a separate British 
Policy 

This may be more likely to 
evolve because of the . totally 
inseparable problems of the 
currency variations, which look 
like being perpetuated. 

To say nothing of other coun- 
tries refusing to rationalise their 
farming systems into a 
Community mould. Dr. Erfl, the 
German Minister, made this 
perfectly clear to me in a few 
minutes’ talk at Geneva Airport 
the other day. 

So if the eventual destruction 
of the Common Agriculture 
Policy comes about this docu- 
ment might be more relevant 
than it appears at first sight. 


COMMODITY MARKET REPORTS AND PRICES 

BASE SiETALS 


PRICE CHANGES 


three montfrs £7IS.‘ Ia-5. IS. -Kerf); Wire- 
bars: Three months £720, lfl.5. 21. 


COPPER— Little changed in qnlct 
trading on the London Metal Excbancc. 
Although Asareu announced an extension 
of to force mojeure on copper cathode 
deliveries ro Europe from Peru, forward 
meta l woo disinclined to move far from 
£720. It started St £722, moved op to £724 
and that slipped back to £719. Comex 
was also lirtle . changed and tbe dose 
on . the London Kerb was £721. Turn- 
over 1&325 tonnes. 


Amalgamated Metal Trading reported 
that In Lbe morning casta wirebars traded 
at £700, three months £722.. XL 29. 20.5, 
20. 19 J. 19. 20, 19.5. 19. Cathodes, casta 
£696, 93.5, three months. 715. Kerb: Wire- 
bars Three mont hs 713, 1X5, 29. 21. 28, 
20 J. Afternoon: Wirebars: Three momtas 
£719. SB,. 19.5. 20. Cathodes: Cash £896, 


COPPBlt 

min. H- or 
Official j — 

p.m. 

UOofflclpI 



* 

1 1 


700- .5 

+ .5 

599.5-700.5;- 

3 mouth*- 

7I9-.5 

— I 

719.6-20 L 

SKtl'xn'nr 

700.5 

+.5 

I 

Cub.: 

695.5-6 


695.5-6 

3 month*- 

715-.5 

-.5 

71S-.5 


698 




CA BmkJ 



*66.5-68 I 


were touched in thin trading a low for the 
day of £6.500 was reached before bear 
covering led to a dose on the Kerb of 
£8,593. Turnover 1.29S loupes. 


lj-tUs average 104.79 '1Z4.O0-; 2L’-dJ»- 
average 1 M.-M ■ 134.22 1 . 


SOYABEAN MEAL 


COFFEE 


i i.iii. - or; p.m. ;t+or 
TIN Ufllcial — Unofficial — 


TIN— Slightly easier despite a steady 
start wnta forward metal a c £S.6M after 
a fail In tbe East overnight. Cn mmua oa 
bouse boring caused an advance to £8,530 
but the price soon came off. When amps 



September Coffee 1481-1497 


I.G. Index limited 01-351 3466. 

29 Lamont Road, London SW10 OHS. 

. i. Tax-free trading on commodity futures. 

2. Tbe commodity futures market for the smaller investor. 


SffCES 


CORAL INDEX: Close 453-458 


CUVE INVESTMENTS LIMITED 

1 Royal* Exchange Ave^ London tUPt*-* 1101 ’ 

Index Guide as at 20th Jmie, 1978 (Base 10O at 14.L77) 

Qive Fixed lnteteatpiprta] Jifnn 

Clive Fixed Interest Income iis-w 


INSURANCE RASE RATES 

f property Growth - § 

t Vanbrugh Guaranteed 

+ Address shown anriar Insurance and Property Bond Tabto. 


Morning: Standard: Cash £8.740. 43. 
three months £8,648. 30. 25. 20. 25. Bigh 
grade: Casta £8.750. Kerb: Standard: Three 
months £8.638. OS. 600 580, 60. Afternoon: 
Standard: Casta £8.700. three months £6.660. 
78. 80, 95. Kerb: Standard: Three months 
£8^90. 85. 

I.EAO — reading easier in subdued con- 
ditions, with the market influenced by 
the performance of copper, but otherwise 
featureless. In early trading forward 
metal moved op io £320 but this level 
could sot be maintained and the price 
Slipped to dose on the Kerb at £315.5. 
Turnover 4^00 tonnes. 


ICO Indicator prices lor .Ivn>> _s H/.S. 
cents Per pound-: Colombian Mild 
Arabics* 167.50 - IST.ii-; umvarhed 

Arabiras 174.00 •saraei: other mild 
Arab leas 1K2.VK) •'!4i.ft7i: RqKuf.rj« l-ITOu 
iMa.OOi. Daily jvtraiie 152. iD iJWW-. 

KabiLha* opened on a tlvady nob. -c 
meted profli-iakuig and short eotenng. 
Drcxel Burnham Lambert reports. Heavy 
dealer selling at ilk* highs prevented any 
dealer *cUlng m th-- highs prevented a ny 
upward breakthrough and a hesitant tunc 
In New Yort: was enough lo provoke = 
decline in London. Values at me tiorc 
were just oil the lows as fresh nailing 
came into lbe market- Dealers said 
trade bcdRe selling weakened the niurtct 
xn the lack of significant toaster offtake. 


"iWcdflav +»r' -Bniine** 
•.lose — I lAr tie 


•iV-rtc-unr 1 

An IJ0J5-2l.0-O.B0 121.35-2l.f0 

U l.-tjvr 124.00-25.2 -0.10 125.90-25.60 

I j«r»i .... 123.I3-U.2 +0.30 I25.&0-23.30 

F.i-n.m ; 1i3-=.-125.b -O.bO — 

Ai-ni 124.1- 126.0 -O.BO — 

Anai.-1 1:7.0-151.0*1.50 — 


? 2 lc.: :•» liti lots, -l 100 loaiie*. 


SUGAK 


COFFEB 


| Ye^enluy’r, ' 

Ckxe ■ + orj Bpsinesa 
j ' — 1 Hone 


■ j: per tonne J 


».«!. |4-vij P-t'l- 4- er 
LEAD ( Official ! — DuotHeial — 


July 1603418 

septerataer ,.| 1487-91 
Xovember... 

January 

Mnn.-li 

Sluv - -I 1310-30 

July- ■ 1150-90 .-30.0; 


1378-80 
1316-20 
1255 60 


4-40.5' 1636-1585 
1 + 27.5 15 16-1460 
. + 4.0 1 1415-1580 
.+ 15.5! 1340-1316 


LONDON DAILY PRICE -raw sugar i 
W.uo i £95.00 > a tonne- of for Jime-Jolv- 
Aug-jit .lupiuent. White yupar daUy pnee 
w:is hsirt at £105.00 isamc. 

The injrt'Cl appeared to lack sellers 
and pr:ce-. moved upward-: in light 
trading, ruporta C. Cunnlrow. Gains of up 
in 75 point: were rvcnrded and final 
price-, u-.re about the day'r high points. 




T 25.01 1275-12M 
. + 55.0*1230 


ll'-inn. 


liY-tereinr'* 

I'revioii; | 

Bu.inesi 


c Iwse : 

lA-m> 


Cash 

3mcmttnl4 

Sfett’lm’ut 
DA a pot. 


i! ! £ ! £ £ 

306.5-7 k. 1251305.75-6.5 -1.6i 

316-.5 .-.5 I 316.5-6 ,-l.Bi 

307 1+ J5 — 

- I j 31-53 ' >.... 


~Sal«' Inis uf s wniws. 

ARABICAS — itlvsc <n« business - done*: 
June 1A.00.90.nu. AOS. 17^.00 TVMJ. Mft. 
1a6.00-ls4.00, Dec. H3.00-SI.no. Ecb 113.1*- 
C.0U. Apt. 133.00-42.00. June 1‘sS.OO-sO H. 


GRAINS 


£ pei i*.>nue 

4*.-. ... 93.00-99.10, D7.40o7Ji0 39. 15-97.30 

■ •-I I01.D5-D1.1D 1 99.e9-99.05 10 1.25 -a.-. 75 

1 Vs-.. . IDs. ID Q5.25jl0l.BD-D l.bB I02.25-O2.DO 
3lhr-!. .110.50 IU.fa|lD9.b0 09.70 110.75 09.80 
lUi . . 113.10- 13.2511)2.20-12.40 113.25-12.30 
tun.. Ho.sO IV. 50' 115.06- 16.00. 1 16.65-1 16.2 
i».i .. . 12U.0010.25'|18.50-19.:3.119.75.J9.50 


Morning.- Throe mouths 328. 27.5, 17. 
ms, 18. IAS. Kerb: Three months £3 is. 
2L5. Afternoon: Three months £316, 15.5. 
Kerb: Three months £336. 

ZINC— S ubd ued, like other markets, but 
tending easier with forward mciai 
Initially quoted at Cl-l-d* before moving 
in the rings down fr o m £3135. following 
tte movements of lead. The close on the 
Kerb was £310.75. Turnover 2J25 tonnes. 


BARLEY 


JYiBtenlav V + or I'estenla.v’r -J-**r 
U'nlbj doe — ■ — 


OL. 44 I. I 

Sov. ! 

Jan. , 
Mur. j 
31 a v I 


04.40 

87.25 

90.95 

92.50 

95.15 


—0.55 

-0.3S* 

-0.65; 

-O.-iOl 

:-0.iSB. 


79.10 

81.90 

84.55 

87.20 

89-85 


O.tO 
1 -0.o5 
-0.55 
‘-0.4D 
-0.25 


THE C.CS.T. 

WEEKLY MARKET REPORT 

on** #TPe to Trading- Clients, this Report , gives fundamental 
^ movements, and makes weekly 

wmmMrnm 







Mi' 



ttlM 

AGNEW OLD B MAST«‘ 

BROTH eRTOlJ CHANLCS 

• -re \ i S 


BROTMeKTOri„__ r^ES^^BY CKAtiLCS 

J"."®* . .virafein 1 Street. S-W.3. 


BZjjF 

DAVID OUWITT 5 CtNUJ^Y 

IP-5- — * — • 


: AdhK 'Sip.":-- -. ■; 


pSfvtetuulc.. 

Until. July 4th. - rree. 


nACMfAY.aaiW 
^^"EX^iBtTION, PART 1. eofll 
29 jelv. ' — 


J>.I_ nw ahts. 

JB * wu,y 

Mod. to Frl. 10-6. 


w- 1 «5riSt. , SS= 

artists. Wide ranae ol P r ' c “- Tue6 ' ? 

I0.oo-5.oo. ’- Sats. io- 00 - 1 - 00 - ‘ 


UBILEY' OUtiri. 34. Davlw St..- W-j- 
SOSaT MATISSS — DfBWlPBfc 
Prints and Illustrated. Boolts.' ' Until 28 
Jjily. •“ . - 


*IXC 

a.m. 

Official 

+ © r 

— Business done— Wheat: tat-m. - ».1.-:>-sl 4il. 

i 1 n,m i.i t ^ Nov. S7.50-y7.2tl, Jan. S!i.n5-j9.1>5 March 
Unofficial) — 92 . 7 o.aj. 5 n. XUy oi.to-K.lli. Sale- Not 

Cwb 

& muDthBpw 
S'mettt.... 
Fnn. West 

£ 

308-.S 

311-2 

302.5 

-.575 

-1-li 

-.25 

„ available. Barley: Scot. i9.4fi-i9.Iu, ,\o> . 

,»7e.»| , aj S2J3-S1JW. Jao i4.75-iyl.70. March rf.Ju- 
IV; r > oE S7.2D. May S9j.5-sP.S5. Sales; tit 

511-.5 —2.5 IMPORTED — Wheat: CWBS No. 1 1> 

“ , . per cent, June £96.25 Tilbury: US Dari. 

—“Tri 1 — 1 . Northern Spring No. 2. 14 Per cent. June 


Sj!v -i >61 » lut, »r 00 t.inne<. 

International Sonar Agreement: Price 
|..r Juia J'i L‘.>. cent, pi-r ■■■■urul rob and 
-iu-».d rjnhncjn port: Daily 6.SH-. 
»wrarf 7— 3 

Tjii- arid i.tk- w-rriincry price for 
t.raiiu1jiL-il frj-.i - wlucc u^ar v. J EJ12.W 
■ i-aiii-v • a inline lor Imnic irjdc- and 
XIS-j.i-i • Il73.ee ■ for .-rr«irl 

EEC IMPORT LEVIES — Kw dClUIUIVd 
and tiijiMl' narurrd bncar. rSiliW today, 
in uuiix of ji Louht per 100 Iriloi. «iih 
pri-vious sn hrji+i-is. While 2723 <ianK-‘. 
Raw 2.V* 

The r-jT..- i«r raws in bulii caw ir for 
siiur basis £•': r-.r cvni. 


4.0 O-.7.20: s. African: Save Is 4.09-4.90. 
Lemons— Italian: 100 /120’s rew crop 4.00- 
4.i»: Span la: Trays 1.30-1 ^o. large bases 
3.60-4.40: S. African: 4.60-3.30. Grapefruit 
— S. -African: J7 72 3.40-4.30; Jaffa: 20 
lulos 4.10-4.60. Apples— French: Golden 
DrliciotlS 20-lb Si's 3.00-3.70, 72’S 3JHKL60. 
jumble buses, per lb 0.18-0.17: W. 
Australian.- Cranny Smith $.80: Tasman- 
ian: Siunuor Pippins O.iivsio. Granny 
Simib S.SO: S. .African: Cranny Smith 
9.00. White Winter Pearmain 7.40-7.60, 
Staridnu Delicious S^IW.40. Golden Deli- 
cious $.3A-$i0. YbrKs 8^!68.60: Chilean: 
Cranny Smith 7.60-S-20. Starfcmc 8.1O5-30: 
New Zealand: Smnner Pippins 183 #.00. 
173 9.00. Granny Smith 9.20: Italian: 
Rome Beauty per lb u.16. Gulden Deli- 
cious O.IG. Jonathans 0.14. Pears— S. 

.African: Cartons. Pachham's Triumph 9.59, 
Josephines 9.00. Peache s S panish: Stan- 
dard trays 2.00-3.00: Italian: Large —60- 
4.50; French: 1.70-2.60. Grapes— Israeli: 
Pcrlenr 4 50. Plums— Spanish: 5 kilos 
Japs 1.20-1.40. Santa Rosa 1494.40. Bur- 
ba afcs a 00-2.40. Apricots — Spanish: 5 talos 
2 .30-3.00. Bananas— Jamaican: f>er 2b 0.23. 
Avocados — Kenya : Fuerte 14/24*5 4.0O-L50: 
S .Afriran: Fnerte 4.00-4.50. Strawberries 
— ijliforruan: 0^0. Cherries— French: 
per Hi 0.4341.53: Italian: 0.30. Onlans— 
Canan': 2.30: Dutch 1.50; Israeli 3^01 
Kcyptian: 2.60: Spanish: 2.50-3.00. Pota- 
toes — Cyprus: 5.30: Brittany: 2.30: Jersey* 
Win 2.30. Tomatoes— Dutch: 2.70-2.60: 
CuL-rnscy: tioUi: Jers-.-y: 2X0: French: 
2.70. Carrots— French: *ets 2.40: Nantes 
jiilb bates 3.40: Italian : 3.20: Cyprus: 
■J >i Aspamus — Californian: per lb L30. 
Beetroot— - Cyprus: 22-lb 2.30. Count ette — 
I Tenctr. ts-r lb 0215-0210. 

English produce: Potatoes— Per 36-lb 
?.40-*.*Aa. Lettuce— Per 12 0^0. Cos O.SO. 
b’lMs 0.70. Onions— Per 5Mb 150. 
Rhubarb— Prr lb. outdoor 0.05. Cecam- 
bors — Per tray 12/24’s 0^6-LM. 

Mushrooms — Per lb fl.40-0.S0. App l es Per 
it> Bromley's O.ifr-O’D. Tomato**— Per 

I Jib EncLsh 2.50-2.60. Greens— Per crate. 
Ki.nl 1 30. Cabbage 1.50. Celertr— Per 

II IS’J 2.30-3.00. Strawberries— Per ilb 
<i. i n-a.JO Cauliflowers — Per 12 Lincoln 
l.Mi. Broad Beans— Per lb 0.06. Peas— 
per lb 0.1241.14. Cherries— Per ib 0.3541.45. 


Priees per tonne unless otherwise 
stated. 



Metals I 

Aluminium *680 £880 

Ft** market tclsi[si.050/4ll[ $1000-10 

CoppercaahWJamj£7O0 1-3.26 £768 
i months do. do. ^719.75,-3.3 '£789 

Cash Cathode.. 6895.75— 3.7547S9.5 

3 months do. do. £715XE— 4.2B4779.5 

Gold Troy oJs104.07bL-O.25S1B2.87B 

Lead Cash. .J£508.125Ll.B2B £304^5 

3 months £315.75; 

Nickel £ 2.668 

Free RaEK8t(eU)(lb)V 1.85- 
1.95 


-1.076 £314^ 


S1.95 

2.05 


Plaliwnin tXOJT Oz._ 

Free Market™... 
Quicksilver (761b.) 

Silver troy oc 

j mouths..... .......I 

Tin Cssb 

3 months 

Wolfram 22J54fbc>B 

’/lino cub 

3 months.... 

Producers 


tel33.0 | £120.5 

[£152.5 +1.1 1£137.5 

IS 123/281, :S 127.52 

389p [+0.8 >299.2p 

296. 7p j+O.B |302.5p 
£6.702.6 — S2.5[f6.6 1 1 
[£6,592 £ — 50.OC6.4 12 & 

8130/36 8131-oB 

£301.75 -1-B76'£3 19.5 
i £311. 251—2.5 £329.75 
8550-600 ' S55U-SU0 


Oils 

Coconut tPhill , 

G tnundnut 

XJoseod Crude tv). 
Palm Malayan 


Seeds 

Copra Phillip 

SoyabcaiT(l' .6.).... 


8 680s .+ 10.0 S667.5 
£704 1-20.0 £749 

[£368 £386 

56304 I + 5.D 5625 


S485i/ ; + 1&.0S455 
$294.44 1+5.85' S3 10 


NEW YURKi iunc 27. 


Sept. 141. SO 

(MlJOi. Dec. 137.00. March 133.Au. May 
131—0. July 129.03. ScpL 127.03. Sales: 


COTTON 


MtmdOfi: Cash £302.3. three months £313. 
12.5, 1L5, 1L Kerb: Three months £311.5. 
U- Afternoon: Cash £301J, three months 
XSIOJ. 10. 10.S. 11. 11.5. Kerb: Three 
mombs £311.5. 12. 

■ Cents per pound, ton previous 
offidai close. I SM per plcuL 


£85.00. Jab- 185.23. Alls. l>LTi& tranship- 
ment East Coast scllrrs: EEC F- cd June 
and July SD7.S0. -AUu. iSd.Hu EmSI and 
West Coast fc-'lli-rs. 

Maize: U.S./ French Jnnc- and .li:lr 
£103.50. Au^. £».2 j translupmcni East 
Coast sellers: Sooth .African while Juik- 
Aug. £73.30 Glasgoiv: South .African Ycllo.v 


WOOL FUTURES 

LONDON— Tin. market was duil and 
r^dtuix-l«r>s. 5+iCbe rvporii. 

•Pence rur kilm 


SILVER 


June- Aug. ITS.Wj Clasgoir sciii-rs. 

HGCA — Ex-lann sput prices. Feed 
wheat: numbcrsidc iDfl.Ott, <.:iouccaicr 
Silver was fised 03 p an ounce higher barley: Humberside lmav. 

for spot delivery in the Londnn bullion The UK monctiio' (.o-crttcicm tor ih.- 
maAet yesterday at JS9.9B. U.S. cent wk fro™ July J '< >*P«Ocd to be uu- 
equivalents of the C*ing levels were: spot changed. P 

34.1c up l.lc: thrce-ruooih 544.0c. up EEC IMPORT LEVIES — r.lt.ihK today. 

OJc: sis-mtataLb 5S3.1C. up L5c: and VI- iu units el accnimt a tonne, in nrd.-r 
month 577.4c, up i-c. The metal opened cum.-nt levy plus Jul>-. Aut, and v. pi. SYDNEY CREASY — .In urd«.r buyer, 

at .ttat-SSttp ■‘SS3-5341CI and dosed at premiums, tintit Previous In UractiU: . w!I hu.in-'M, »alcs>. Micron Contract: 


AL‘luU'1 

(■ : ci' y WwbI 

idcnl'yt^- of Ui-iihw 
< i.ue’ j — ; |i>«* 

jiiii 

251.0-52.fr 4-J.2fr' 2510 


-0.25: 


2ll.i>-«5.0 1-0.75 — 

Jl.reta J246.U.4S.0 1 - 


246.0-48.0 - 

■W.|.v 

24 c. 0-46.0 

lit .. . 

247.0-50.0 ... 

A l-i it 

24S.D-52.0 1 — 

Saks- ■ >: 

l"l-i Of 15.5UU kJlot.. 


COTTON. Liverpool — Spot and shipment 
sales amounted to IS3 itmnes. bringing 
the total for ihc weet so far to 57 6 
ronnes. A fair offtake brought miscci- 
iuncuus transactions in Turkish and other 
.iliddlc Eastern qualities, reports P. AY. 
1 aiKTiall. North and Somb American 
ntjple attracted more aucubtm. 


Grains ’ I 

Barley BBC ; ! : 

Home Foturoa... £81.9 —0.55 £83.4 
Maine 1 

French No. 3 Am £103.521 £105.26 

Wheat i ; 

A’o. 1 Bed Spring! £96. 55 1+0.25 £97.5 

No. 2Bard Winter! i ; J 

Snglicb Milling.. £106 i £102 

Cocoa 6hipment....;£1.885 18.0A1.798 

Puture Sept. £1.781.6 —15.01 1.737 

Coffee Future. ■ i 

. Sept _!£1,488 ;+27.S Cl,709 

Cotton ‘A’ Index — (72.15c 70.95^ 

Hotter klJo ,57.5p -0.75 57.5p 

Sugar (Haw) £96 +1.0 £103 

Wooltope 84a kUo...| 283p <Z80(> 


* Nominal. t unatmtrd. ft August. 
m Jane -August. nJaly-Sept- pJuljr-Aug. 
to July. 7Jun»Jnly. x Per ton. 


U.S. wheat 
loan rate 
increased 


INDICES 


SLLVEir 

per 

" troy to. 

Bullion 

feting 

pricing 

J+ 

! " 1 

L.M.E. 

Cl-MK 

j+or 

1 


289 p 

1+0.8; 289. Ip 

I 

!+0.« 


296.7j> 

1 + 0.81 296.65p +0.2 

fiinoatha.. 

304.9p 

'+ 1.2j 


| ... .. 

12 m. in ubs. 

321.5p 

1+1-3; 

: — 

i 


LME— Turnover SB'itSl lots of lO.MD 
ozs. Morning: Three months 296.7. 65. 
97. 86.T. 97. 7.2, 70. 7i Kerb: Three 
months 297 J. 97. AnernoOU: Three months 
T Wft . SJ. 96. 81. 96. 6.4, 61. 6.7. Kerb: 
Three months 396.5. 


Com mac Wheal— «S.J1. ft i it,, rn.fi. mi 
155.51. n.:n. n.te. mu: Durom wheat— 
ltata.TD. nil nil nil isamo Rye— -7 of. 
nil. nil. uil i5s.1l. ml. nil. mh. earlcy— 
VI .38. nil. ml. oil ■ same: Oats— 79.hi. Ml. 
nil. ml isarnei: Maize (ether than hybrid 
for seedlnsl — 77 99. nil. nil. nil ifo-i-S 0.17. 
0.17. 0 17>: Buckwheat— all oil: Millet — 
81.94. ml. nil, nil «-viniu>: Grain Sorghum 
— 02.97. uil. nil. nil isanw. 

for Sour: Wheat or mixed wheal and 
-1S0.I1 Rye— 124 91 Iji'.il ■. 


Jiiir - 

^J.U 


24: Owl. 

:;47.U. 

.Hi.'r. 

r.ls.5- :47.l. 2u; 

Dec. 

056.9. 

s.v^. 


iyi. 

:rj. !'arut 

1 X'6.0 

7 

:07.-- 


i.. ; 

M.iv ■I'jft.j, 

■140 7. 

>.'.iw ffiD, 

S: 

Jni:- - 

oJ. 

W». MtiMt. 

li 

■On.!!. 

■irhTi. i. 

•l..u 

9; 

Dec. 

.ton b 

.4^.5. 

u- ;.;- u. 

4 TOtul 

sail-:.. 

11‘. 



MEAT/VEGETABLES 


RUBBER 


COCOA 


EASIER opening on the London 
physical muteu LitiJe uuc test ihrwuh- 
out the day, closing dull. l.eivts and 
Pear reported j Jlalavsian godoun price 
ot 240 f242 1 cc-dis a kilo ibui'cr. JuJj'. 


Prices held steadily throBSh lbe day 
with modest consumer enquiry, reports 
Gill and DnfTss. 

“jVSSnliy'a; +*Jr > Jfu?iile»a 

COCOA Clcrw I — j Dene 


N'i.1 !V«-»r'it 1 xfV i 1'rc clous Siivinn; 
K.6.S Clov r • ihau- 


NvAftinrt! 

July ;1834.M5.0 !-17.6184B.5 1819 

jtjpt .178L0-B2.U i— lS.O,1810.U-17ra 

Se. 1741JJ-4U 8.25 77SD.0 1735 

Uereb J1715J-I4.® ;-14.0 1723.8-W1D 

Uav _IB5.d-97.B — Jfi.5 1705.^)63? 

July ..1676.8- 77.0 -15.5:iG8B.0-1675 

I860.0-65.il :-lb.O: 


Sales: 2.48a ll ’05i lots or 10 tonnw. 
I nt ern ation al Cocoa Oraantsalion tU.S. 
cents per pound:— Dally price June 2*: 
141X2 1 110.4? i. Indicator prices June 27: 


July..... . 59.50-68.M BB.70-59.1D 

Auj: 5fi.7S-53.2D: 5S.50-S9.9D 

Jlv-jqK t4i.s5-ol.03- 59.65-iO.1D 
0.1-1- Up.- 62,93 £3.00 62.25-BI.35 
.mil- tli.' 54.40 64.45' 64.35 t4.?0 
Aiir-.lnr: 65.65-65.50 £5.55-15.75 
.1 iy-.ii: in. £7.25 67.50 67.2D67.i5 
tjhi t- brt 5d.7d-fi5.75,' 58.75-t‘S.7s 
Jmi-Mii’ 99.35-70.00 70.23 70 25 
— Saic5: r.« usti. ims uf m 
9 till MJ uf 3 unilies. 

PhysK-a! i losing pro.. -5 'bin 
Spot 57. 5p i5v2j'. August .If, 
Sept. 5BP ifiUO*. 


59.lD-i9.DQ 
69.f0-59.50 
bS.33-iu.ta 
54.2i 62.35 
65.23 tS j) 
t£.3J < 5.30 
b7.89-67.25 
tftaD r?.25 
71.50-70.00 
innu.> Jl:J 


SMlTHFlELD 'PeDrc a pouuJi — Beef: 
S^uttii r i lied sides Jti.n ca j£i.|i; Ulster 
biitdquarK-rs 72 " to J5.V. lur-.-quaners 
J4.Q iu JQ.u 

Lamb: LruJisli small 62.fi k- **4i. 
nteduio! 6il.(< lo '74 0, heavy 5j .0 to *3.8. 
inporiid frosxn N2 PL to 54.0. PM 

7-' j lo Ai.0. 

Pork: En.4i$fi 7.w than MO lb 37 « in 
44.il IlKi-liri !b M.U to 42.0. 178-16U !b 
Ain tu 4 1.1'. 

MEAT COMMISSION— A verage fjtaiuek 
PD'\s Ji renrcsmiaiivc markets jester- 
day. Ge— Call! - T2.4tp a kg-l-tr. (-U 5! , 
UK— Shu p I43.eP a ks.cst d.c.u. i-i'. 
66 — Pi;... i«1.7ii a Ic.l.tr. i.'-T li. 

Englami and Wales— CaLk up 1S.1 {n-r 
--.i: j-.'irag- Price 72 'J2|i • — h iiBi. 


ill). 1 II 

UP 

r«r 

«m. u*. 

142.4|i 


l*is. 

down u. 

cr.i.;t 

pruv 

. Up 

■'1.1(. 

Caul.- 

dov.n 

: 

per twit 

l»rvy 7. 

■*}(• •- 

T 

sheep 

> it ■ 

•-ra:re 

ir (•.••• 

150 Ip r — 

:iii 4-1 , 

n- r 

:nr. 

avcM^i 


Scniian ti- 
nt i- ratal- 


Pl = V 


f-rsi v.-, r- • 
,?3p 


i • 

COVE NT CARDEN ■<n.-rliilta 3 pjiAatae 
irtfi-. 'tjt'<li — imported produce: 
Oranaes— pres Vak-nua Laics 33 Ulus 


KANSAS CITY. June 27. 

Mr. Bob Bergland. the U.S. 
Secretary of Agriculture, 
announced that tbe 1978 loan 
rate for wheat was being in- 
creased to $2.35 a bushel from 
S2J25. 

He told the American Seed 
Trade Association this increase 
would offer farmers more cash- 
flow assistance and increase the 
farmer-owned reserve release 
level to $3.29 from S3 J5, so assur- 
ing producers a higher price for 
their reserve wheat. 

It would tend to stabiJifie 
seasonal market movements with 
little impact on the seasonal 
average price. 

Producer* bad placed more 
than 3-tifm bushels of wheat in 
grain reserve. The higher loan 
rate should he an added induce- 
ment io continue to remove 
excess wheal from the market 
and further strengthen prices. 
Reuter 


FINANCIAL TIMES 


June 27 | June 2S|Moatb ago 

l’rtr^u 

244.97 1 246.44 J 254vS7. 

25D.OB 

(Base: July 1. 1952= 

100) 


REUTER'S 

j iioi’27 fJnne 28', MxSth 


1406.211492.3 1 1608.5 | 1571.1 


Year 


iBase: September 18. lBSi=!<n» 


DOW JONES 


Do* 1 June 1 June 
Jones | 27 1 28 

Uuotb- 

mo 

Yen 

Sput....|56 1^1,366.65 
Futures 1348. 24(350.38 

359.48 

358.72 

393.62 

360.39 


(Average 1824-3546=1001 

MOODY'S 


Moody's 

Jane 

£7 

Jane 

26 

Month 

ago 

Year 

ego 

6ple Coramiyi 

1985.5 

923 . 4 ] 

936.0' 

■•79-6 


(December SI. 1931=11511 


GRIMSBY FISH - Supply and ud 
demand 9oad. Prices, a stone, at sbip'n 
Side llll|iriKri>l4: Shelf cod £1.69-14. M. 
cedhazs £2. 66- £3.20: large hsddort 14>0. 
ntedimu IS-70-I4.30. email G.aD-lJ.w: 
large plaice I4.SIKU.70, medimn £4.00- 
£ 4 . 60 , best Email U.60-E4.00: ticianed dog- 
tijh, large £s.5e, medium 1B.0Q: lemon 
voles, lame efi- 00 , medium fS.oo: rocHish 
CJD-£J.»: sal ihe r 2 . 00 -e.S 6 . 


131J 

440 lots. 

Coffee— -C - Contract- July 1KI.55-1K.-.0H 
Sepl. I-rfi.0P-f4S.u9 (I<r.5fii. Dee. 
126^0-1^7.00. March 126.00-127.00, Mav 
ti7.OO-lii.0O. July 120^3. Sept. Ufi.fiO- 

118.00. Sales: 645 lots. 

Copper— June 59 JO < 59.50 1 . July iW.CQ 
■ 59.50i. Aug. 09.90. Sepl. COjO. Dec. 62.30, 
Jan. "2.90. March U3.90. Mjy 64.90. July 
63.M. Sept. M.DO. Dev. ta.40. Jan. 6S.90. 
March 89.90 Sales- 4.000 lm*:. 

Cotton — ]\[o. J: July 3S.00-5S.I0 f58-SJ». 
Oct. 60.40-60.50 «6l.95i. Dec. 62.20-82.40. 
March 63.4D. May 64.45 bid. j'uly 65.23 
bid. Oct. 64i5 bid. Dec. 64.00-65.00. Sail s: 
6.050 lots. 

‘Gold— June 195.10 <195.101, July 164.91 
1165.10'. Aug. 186.50, Oct. 158.40. Dec. 

192.40, Feb. 195.40. April IPS 50. June 
ML60. Aug. 204.70. Oct. 207.90. Dec. 2n.00. 
Feb. 214JD. April 217.50. Sales i 5.123 lots. 

+Lard — Not available. 
tMelK— July 253? (256| i. S-pt. 2551270 
f257ii. Dec. 25SJ-25S. March 265. 51 ay 2/19. 
July 270. 

SPIatieum— July 21i.5ij-247.no <245 30-. 

Oct. 249.50-249.90 < 249.20 ■: Jan. 252.in~ 

252.00. April 255.00-253 JH. July 25K.1«- 
258X0. Oct. 261 .10-281-0. Jan. 284.30-384^9. 
Sales: 1.348 lots. 

'Silver — J LU1L- 1553 tlQi JulV 525 70 

(535.50 p. Aug. 539J0. Sepl. 542.711, Dec. 

554.40. Jail. Mvjo. March 5fi«i.50. Map 
573^0. July 5S4.00. Sept. 593 no. Dec. 

606.00. Jan. 611 .20. March «3U.4n. Sales: 
17.000 lots. 

Handy and Harman spot s.11.50 i 332.5n'p s 
Soyabeiuu — July i»i;-TKt ifiJL'p. Aug. 
674-875 »683ii. Sept. 652. Nor.'634-Ui5. Jain 
63»». March 643-A46. Mar MS-6fi». July M9 
IlSoyahean Meal— July 1P.7T1-173.90 
(174.60). Aug. 174.00-174.50 <175.10i. Snp:, 
174.10. Oct- 173JW. Dec. 171.DU-171.2U. Jan. 
170.60. March lTJ-bii. May 17.-..>Ki-17“. sn. 
July 174.io-iT4.SO. 

Soyabean Oik— July 23.55-2S.fin 1 26.33 1 . 
Ann. 25.00-25.05 IJS.751. Sepl. i’4.50. Clef. 
23.93. Dec. 23.35-23.40. Jan. 23.15. March 

23.00. May 22311. July 22.75 

Sugar — No. 11: July T.tri-T.m iTut-. 
Sept. 7.20-7J1 1 7.21 1 . Ocr. 7.32-7.T:. .lun. 
7.60.7.70. March S.U4-S.H5 May Julv 

6.4IW.42. Sept, fi.87 rtet. S 77. Rale*: 
3.150 lots. 

Tin— o57.5d-Mb.U0 nominal iStn.OO-.W tlO 
nooiinah. 

"Wheat— July Sl.r-uifi »•■-■! -. Seri. 
31S-317* (323! i. Dec. 5234-325. March .'CM!. 
May 52t:-:77.'. .inly Mu. 

WINNIPEG. June 27. l«.‘.on 

r ioG.20 bid>. n t t. iw. 9 n ■ hisaj avkcd>, 
Nov. 103.9D nominal. Doc. Iffi.50 aske^f. 
May unuuoted 

ttOau— July 72..:n |74.7U bid-. >Ul. 73 50 
bid 1.74 .Iff hiJi Del. J-JOfi bnJ. .March 
71 SO. May 74 30. 

StBaricy — July 73.5U hid ■ 74.-1H b<di. '»ct. 
73.70 bid (74.5(1 bidi. Dec. 75.70 hid. March 
74.30 bid. May 75.30. 

^Flaxseed— July SAM bid .u0 lod -. 
OcL 244.00 (740.110 aiki-d ■. Not. 243 50 
anted. Dec. 239.50 bid. May 2444(0 h»i 
-rwbeat— RCWTtS t:t.3 per cenr piolcm 
cootetu erf SL Lawrentt- 462,fiS (lffl.22 1 
All cvnis per nound i-s-v.-j rehouse 
unless oLhcrwisc Rial'.-*!. " » per i me 

ounce— 100 ounce 'ots. 1 Chicaco loose 
$s per mo lbs— Dcpi. ot Ap. pr»vs pn - 
vio us day. Prlnn- tub. NY hulh 

taut cars, i rents per Jo Ih busbel « i> 
warehouse. 5.00D bushel lots. •* .'J Prr 
troy nonce tor M oz itmis of 90.W' r-: “ 
Lent parity delivered NY. 1 Cenre nee 
troy ounce cs-u - arebotu>*.. ,1 New ■■ R " 
contract in 5s a short t« for buK Imi 
of 100 short ions delivered f.o.n. cars 
Chicago. Toledo. Sr. Louis an-1 .\Jion. 
*■ CcnU per 80 lb bushel in store, 
-» Cents per 24 Ib bushel . . ‘ Tents per 
43 Ib bushel ev-wurthovisr . *■ Cents per 

56 Ib huslM-I ex-tcarcbvdse. UWO bushel 
lms. TISC per tonne. 


Port clearance 
work delaved 


BUENOS AIFES. June 27. 
Progress in clearing the backlog 
of grain freighters waiting at 
Argentian ports has slowed down 
lately. 

Rain and fog disrupted load- 
ings and shipping movement* 
while cuts in work timetables 
during matches for the world 
soccer chatnoionship also had a 
disruptive effect. 

Reuter 


V ;• " 

5 *■ 



1 


----- £.->’■* ? V*;^' 



i»J> •*¥■*• - -'. -V 



K^v v:^'^ .-’ "■ - 


omaii tecnmcai rally etc 

Long tap call passes without 


eveloBS in oversold 


financial times 


and Gilts regain i 


— . ... ; - /Jims June 'Jana. i . VjJ8» . 

.... -37,;. j .26 j g 

•«brt'i^wc7? aw SW* '"** '*** '***» 


■- -:i‘ae U aim,—..-. -I «*4- W*.-; 



ACCOUNT DEALING DATES 

0 pi tun 


liiulili^htin^ 


=> . ■ ;. ;■■;.■ : 

J3 ks: ^rass «fa s^Jf’wSSASs? 


Dealings tious Dealings Day — ln| .„ of JM 

Jun.I2 Juit.2~ {““■ '* ■?"& Grant Met followed with 143. 'll 
Jim. 26 JuJ>' 6 JuJ*' ‘ J“* y , overall total was 5SU compare 
July Ifl JulyLU July-1 Aug. t UII |i iht* previous day’s mode 
* “ New lime " dealings way lake plate :; AK . 

Irern 9JO am i«n» business days earlier. 

sucgestions mat Hie current Leslie and Godwin good 

Z£S 'sresLirtsi -eel 


uwr :»u per cent or lh« business commuit highlighting bid art :nn.-ifoii had surpassed Ilfim saw ■ mne < ^ sJbdued trading. k**/B K*Uj '.Wf 

transacted in Traded Uiuion, jmssib.lilies attracted renewed Denund m a ih in market l.flwl petered ou L tetb* PWroteom in snroiwn 4^9 1 

jesicrtlny was done in two slocks, buying interest in Ml' I furniture Condon Pavilion 20 io fi30p but closed tt the Ovem£M level In ■^ ustr ^f r % v W pak srirf- tuirnr rtn~' I ''- 

Cons Gold recorded an unusually which advanced 4 to !«Sp. Amber small offerings in Front or today's S44|>. ShcU ^ESsMof Mining were no tab^ weak _and JSputy fu . . . . e : 

high tola I of 1R4 contracts. while Day improved 2 lo 4np and results left CJiubb 4 ..IT at 137p. "top- /“j^WSESSmilSS fina fi L* 11 j T? nL 2 * 2 * 2 . 

Grant Met followed with 143. The Bernard Paradise gained a similar ,\ reported bid denial From the niates m tie Brae Field stirauiated a withdrawaTof the recent specu- i.M-.wm 

overall total was iiSii coinnareri amount io 2.“t». Church, on lhe ch.iirni.in dam turned recent interest in _ . Siebens iu ' *» Utive support. - • . I.»- 




chairman oampeneo iceem ••■ ■ ' an( i ~*«*~*- - .j - .-. t fthwt -atfcc sM66^8o2fe.-^.v -..- .. .=■ --■ y;- 7 

enthusiasm in Toye which eased higher at 344 p. . . Otherwise most of the . bas^- J. ■ - ■ - •• M i ;(**■■ . 

:■ '““p 1 '. <» £ssrBS2»„** , S2a. “« «« ^ysdtfjsjssawffei ^s^s^sstaaK's^Kr 


.nd Curry. r«*H i >•■ !«•>• » coupon. ^'{iKo.f-'iiwrdtag the 

Ekrirmu lud H-- ■■cc.isumil ^ [alters panretpatiun in the 

nrm spot, bracks rose .. lo a liiiS _-P *na *tmm inausrr ^ Esypt j an Mariut concession put 

peak ..f 7«n on vasue 'alk of a ■* to 100p. RnH^vnur no 3 to 22o. 


peak ..f 7<ip on vasue |alk of a up ■* w ±wn>. 

bid from ItacaJ Eleetrnnics. while Molom and Distributors closed 

Dale Klectrie improved 4 10 13Up lirmiy following an evenly 


Endeavour up 2 to 
Investment Trusts 


repercussions in both Gdi-edaeij h< . r ..,- l7|1 ,-ose"l2and J>> re spec- ‘■■%pe , - , enccd by its riir.i r.nished only a penny better at spots, hawever.inemaeo »»« directions with Central Pitadfrf-. ' •-■ ft-lKy ':^6jflK-pwPW WVW ■ .. 

and equity markeis recently, had . while Sedswick Forbes Audioironic. rallied a lo l sap. The *7‘p despite Ihe announcement Foreign Investment, 3 oB nTQfo ^ at 500p and SontheniJ £*jl OriL.-; WJ. ;Aa3.4 j b«&2 j , 49.+j; ] 

passed wiihout incident. Jlu cd 7 in "oTn^d Mtaet mdK Iejdvr * "“-luaicd narrowly and 0 r substantially increased earn- and City and Commercial Capital. grmer at 195p. • J. 1 **- : -.^v 

A smuil deotund for M* ^ ^WST&Sl ^ *««• «*• » -* “ LwXedLd^ard'STo tp ^ong IrisWCwWU* 

..f .hp made .1 Midi drawing uronvih from anparcnt response to news of the Haw Far eagea torwaro - w i -*«p e « 


A small demand for leading UJ i 3 in IN$p. Leslie and 
Industrials -at the outset made e/ict'uniered fresh >jje 
•little early impression, but ihe .support on bid hopes and 
openin'.' atmunpherc in ihe ruudi’ forward S more to a 1M7S 
market aided sentiment. In over- uo |V .v dull mark el of |:i 
sold conditions, the rally m adverse Press mention. D 
equiliefl whs furthered and prices Beard 1 ecuvureU 2 Iu 3i!|i. 


Siill drawing slrength from apparent response 




closed at ihe best of 
Trade remained Uiilit 


Fea I u res n ere few and Tar '• P. on I tie lal e diSdOKUi e 1 n:il 

Ik*iv ecu in Ihe Rankinu seel or. *>td •liscu^inns are currenllj 


lirted Fitzroy Investment a penny opening a ffacoon easier aroin^i ■ y rtf • 
to 14J P, but small selling left 230p a welter -of -profit-rakiOT. . NEW 

modest losses in both Exploration, developed and tte P n <^ dropped . ^ .Si.. ’NEW L6W~ 

id-BSta. » i» »» l0r * net tossof »p- -emum* 

cSLSVSt 52355Z*ttS . . 

V-JS? 19 a rprfrieted cents down at S184575 per ounce*.' . bajocs .t«: v , -,r. r . . ■ ^kmaMxaMnPtn 




equiiie, whs furthered and prices Beard reeve rod 2 iu 32|.. mgs Warwick wore marked up 4 , , , modest losses in both Exploration, develop^ and the priM dropped- 7** NEWUm 

cenerjliy closed at ihe best of F |u ,.,. s „ e ,. e few and Tar lw -il Jp Oil Ihe lale disdo.MIl e Ihlil UllS SUuQUGQ Uwihi. 21n to 203p f Ora net 1QSS of 33p. -> »are I n (□rn^UDD.- ,Sorv»*6 . 

ihe day. Trade ren.ained Imlu ^ h i B- nkm-- secor bid direusMom. are currenlh , m . _ u ' 2.»p. and Kwabu, 21p. . r . Ju-- I * a,n * 6 

with lilile >ii;nificant improve- • ...... ..ra j..c,. D ii Irirdcned 7 to •akiru; place with (lidney . - n . -^ewspaiwrs rhomsoii l>ro- In q U j e t Shippings, Hunting • A further wBakeMPg in the; . . NEW ; BI6K130) . ’••V -> ’< ■ r«u«itnnu 

ment m .he number of bargains ^ u ,‘ ^ Sccurll its. 'l'cculcmil put on U to '■'** . lh * ^ noablemavemen Cibson q were exceptionally dull at bidbon pru^ wWg ' v ^tSZSgZSL** 

marked at 4.470 as against the 1 , result while FNFC I3“P follow in- the rcsulU ami p 'i" °f r L V. "Vn^ qmi.h 133p - down “» * ratrlcted ® 1 ^£JV p ® ,r i 5 u ^| jpskh ftnoJ ■■-•'..■ . < ^iptoar 

Individual reaiures were rare mV mier.m l.eurcs u hi ch showed \ !, 'T. 1 , 1 " siruclion scheme. In contrast. Fr,d ays annual meeun 0 . prompted minor scattered selling t CHEMTenxt <1 

but unions constituents of Hie a slrun- return to prol. lability in m "g^finvr it ,?^ r Al11 " Lundi.n and Frovincial Poster of South African Golds. ho from £»'>> 

FT ou-sliare index. Imally a net ihe lirsi-haD. Calllcs Holdings Lalfnur ai nup. I.. I.lliott roM* «. she(J | 0 i77p on lack of buyers Olliet Mill PS ti«i CnU uinM mrioi :•. T -‘--iiANAou l *£i.S|*?V 

3.3 higher at 45H.3. Bowaler hardened a penny 'more to 3li|p to 1— p on speculative support. ;ind j. Waddington eased « to N2 mei ^ S Hw? Z ''"i 

Flipped ’4 lo 87p. sifter Mp. follow- n n further consideration of the Culleu’s Stores lieu red promi- 20up ahead of the annual results u In Textiles. Caird (Dundee) imtoWA Ammg noayy. q.ecntCMs^w^ ^ WHP>n w»m. ^ 

ins; >alk of a downgrading in a resulit. and proposed 20 per Cent „rntly m Foods, ihe ordinary expected in early July. became a late dull spot at 131, ^*SHjJb52 £12« iSaTKerf? HiShUmi Elect. 

broker'd previously optimistic scrip m*ue. rising 13 10 12.»p and Hie A 14 to r.,.i^iiv irounrf dow ' n U* on the increased Josx to «nriene^, vaaa mciNiMttWg - . *.?• < - '. ^- 2a.=j 

forecast of current year profits. Breweries spent another quiet 122p as bid speculation revived. t .^. r Sr l^elf ind seKed ? ther duI1 <r cou 5 te ” in =‘ ad f. d ^ !f K ^ ^ St -:V ■'- 

John Brown, in contrast, con- ^ es ^; on . but prices tended 10 Tcsc«. where former chairman Mr. anaijiv^ issues such as Stock Con- f* Tex ' at 10 P* S: South African Finandab Wgp Brown 00 Wertpa-evam^; ;; “ ■. torthor pe . . v- , 

tinueri io celebrate last weeks harden Elsewhere, revived specu- Hyman Kcitman has recently sub- '■.«£ S United rS! J?£ rstlu f ^ atur ^ c by De T ® e « rs - V 

excellcni ligurcs and yarned u | nl j V( . inlcrest left Amalgamated stantially reduced his sharchold- o.- n both firmed -i couple of Tobaccos, ® A T Industries deferred 12 to 395p 1 on 1 London and Cape do P a ”' i-- --vT 'AbcaV Atiunint^^^euitei^^, 

more lM 3S2 P . Distilled Products 2 better at Vop Ii.l-. finished a shade harder at vlaiiSSthe oSSro uf closed 4 cheaper at 270p on the selling and the. absence ofany A -^hotels o»_- \ 

Enthusiasm for Gil.-eckted and Matthew Clark « ,0 the good 42 Jp. Trust Houses Forte edged Sid’ shed WJ ^ V- 

securities was not immediately at 13Sp. forward 2 to 2i0p m front of a penny to 43 p in late dealings. ^i.^Vu short the nrevioi^ Other South Africans generally s.tentotght . - > ; ; -. j mmm MiA 

nnniiii.inc hnn'111 . i. j ;.. lod av's inteii/tt statement. Cni-,11 cli iniT m t Ann. sU^tiy short of the previous . .. . London - reeistererf rksunA»cE tti ? . :7 ;. iwKiiw Hwte- 


Gill-etkfed and Matthew Clark « to the yond 42'p Trust Houses Forte edged Sid C la tks. 'English Prupt-rty shed hS fUrthCr V& bUyi “®' 


Emhursia.sm for Gill-etkfed and .Malllirw Clark « 10 me yood 4-jtp. trust nousi 

securities was not immediately al 13fp. forward 2 10 211 

evident although quotations began \ marked improvement in tfday .« interim ata 
a shade higher on overnight list trade developed in P-uildings and 

levels. Gradually, a technical gelecied issues made moderate lp f;.|e 

recovery ensued, albeit in light head wav. Richard Custain firmed ^ VJiaa pisrasc 




trail iiic, and the long tap s lo IStip and SOB added a couple 
Exchequer 12 per cent, 2013-17. 0 f pence to lotfp, the latter in 


;h . bid taikv. tngtish rru perry snea n-eni- ve»r nrafits will Fall industrials cm- •• - EWoVaoW-CJ.' E.r-*"--- -nmmi 6 

rward 2 10 210p in front of a penny to 43p in late dealings. P J2 th- nrwioM Other South Africans generttOy s.ientatoM . ‘ . : -■ J mousT K&i 

Jay's interim statement. Small selling clipped o from Imry ^ l, - V short 01 ^ previous declined. London - registered ■ . - ;S^iSKS^' 

Hi 305p. Further speculative ye f' _ ^ Financials drifted in quiet trading Leaite " d ^ V " : 

^ G'ic nlnaco demand left Brilway Holdings 5 lo Guthrie became an erratic following the disappointing -smith roa .j . -.. .. w ' -i . 2 .W 2 . 

w v* as p tease thc „ ood al and lhe capital market, easing to 282p initially performance of base-metal prices. 

XI|V „ „., n 7n '• , . . shares a similar amount dearer before closing 5 better on balance Rio Tinlo-Zinc gave np a farthers >exnUs r ^6' 

MiscellanLOUs Industrial leaders wt Wp iWtinernev attracted fresh at 2fl0p for a two-day gain of ro 214p and Charter a penny lo teens Dyers il .: V ; - 

!'? Ld . a useru .l technical rally , j nteres r g nd ,; rme d 2 to IS. Other noteworthy movements i37p. . trustc <n 


r.xcnequer 1^ per ceru, or nonce to loop, tne fairer in „,. 1|>( i n n<prni te./-hn;-ni r^iiv *"i'- i«nnrrniy jiuai™ kcm ^ o — 7 ^ “ « 

regained : to 43’. a discount re <pjnse to the increased profits uiih^ rJiSin” nSne q buying interest and firmed 2 to IS. Other noteworthy movements 137p. ... ' 

still of l; since the stock is now and confident staiement. Country a ' n H riavn 44 p. but Property Holding and in Plantations were conned lo a ^ lower bullion price oa nwf 

dealt in £4.Vpaid form. The de ,nand lifted Econa 3 to 70,.. ™ ?irn much S?.pr In ' estmtnl up re unmoved at 302 p rise of 2 to 73p in Kuala Lumpur ^ of 4 to i 67 p St GoSS 

shorter maiurities attracted The proposed acquisition «f fitt*?- 1 to ,h dosp,: ° lhe im P rov ^ d an »“«l Kcpong and an mprovement of " Jfr r « 

xlightlr busier conditions and Diivr-ified Earth Sciences for qwn ' Jrf .W.h r ^ ults ' 3 to 242p jn Warreo. wShffiE '^S ^•f B l 

closed with recoverie.> extending S 12.2m left Cement -Road si one un- Bowau-r houov.-r^niinnid Initial small falls in Oils were Mining markets were quietly S«S5S? iS!L thLt^cS ^ 


-Haw Par 

OVERSEAS TRADERS <21 r: • ' • ' ^ ■ : 0«3.Tf>ir? 

Aust. Auric . .Sin* Darter' V ., .. 'Clyde .^CWMaOm . J ;_//• 


initial small tans in uus were Mining markers were qutcu? foiiQ.v-me news that AKA bad 
soon erased, but leading issues dull with most sections either lts holding in Murchison 

by almost half in the-six m onths 

- to May 31. 


previous 


OPTIONS 

I DATES Wilson Walton. Serek, Brocks, 

Last For GRA Property Trust, Charterhall, 
Dedara- Settle- KCA International, Lad broke 
lion ment Warrants, House of Fraser, F. W. 
Sep. 14 Sep. 26 Woolwortb, SpiUers, Pacific 
Sep. 28 Oct. 10 Copper and Westland. A put was 


inds were lowered a couple of more lo 47ip in contimied <™rily on the betfer-than- J ’ % done In EMI whUe doubJes were 

. .lint's and lhe 2! per cent 1HR../70 respon.se lo the interim profits expected outcome to close 1< up J, u *> 18 July J1 Ocl. 1- done in tail. While douoies were 

closed that much down at £50. I Sfllllr’ P at 33->p. The chairman s optimistic For rate indication , se*J end of arranged 10 Lonrfao. Serek, British Funds n 2 

Another basically idle day in the * remarks at the AGM helped Silent- .Share Information Service Brocks, Trafalgar House, British arms. Dsm. and 

investment currency market lifFT hptfpr ni 8 hl advance 7 10 hop. while Stocks favoured for the call Home Stores, Gussies A, Foreisn Bonds u » 

ended with the premium a point 111X1 uc tici National Carbonising put on 31 lo were Fitch Lovell, Britannia Ladhroke and Warrants, Charter- industrials — 293 331 

easier at 100 per cent: arbitrage A slightly firmer trend was 42ip following buying ahead of Arrow. Loudon and Northern, ball, EMI and UDT. Finmeiat and Prep 110 *7 

offerings released by operations evident in lead ins Stores after a Friday's preliminary results. — ... ■■ n . . — — oils is 6 

in overseas securities tended to small trade. Gussies A hardened Solhcby Parke Bernet improved 3 _ Piamatisn b- 3 

aggravate the dull trend. Yesler- 4 to 2fi6p and Mothercare edged to 2Slp with sentiment buoyed by LONDON TRADED OPTIONS Mh,es 17 

days SE conversion factor was forward 2 to 154p as did House of the disclosure that the sum Recent Jssus 13 3 

n.F744 lOfifiRR). Fraser, to 132p Elsewhere. Press realised at the Robert Van Hirsch I ~ ~~ " I Totals 531: 5X2 


RISES AND FALLS 
YESTERDAY : 


Stock . thm 
_ De Beers Defd. ' R0.1 

ia ; £i 

BAT lnds. 25p 

; bp a . 

. Brown (J.) SI • 

. . Shell Transport... 25p 
me Barclays Bank : ... £1 

: « GEC r.i'.V 25p 

i, GKN £t 


Deobihina-AolE.. dosing, Cba ng& . ^ W7$:.. 
. thm • _ fmarlqs' price Cp) . Nop day. -. 

: R0.05 *- ir V 395 - -. -I2 \- -412+V 

.... ; £1 


R0.05 IJ. 

395--. 

-12 

£1 

2Sp ^ -: flL . 

. - 3 tt'-* 
r 310- ' 

5'- ? 

7.- 

. 9 . :• 

-844 

1 . • - > /»■ 

- 8- 

382 .. 

>’ -+ 6 ; 

25p:. ; s 

• 545 ' . 


£1 ,7: ,. • 

312 T 

;.fv.i - 




LONDON TRADED OPTIONS 


Finucial and Prep 110 

. OH* IS 

I Plantation - fr 

Mines 17 


JEt 

248 


£1' >”»• 

252- :. - . -rr 

25 p j. ■ i - 

2S7;; .■ 

25 p^'-T 1 

21 *. 


25 f»_^: 2 M 

-IvSIStt -— M t; 



NOTICE OF REDEMPTION 


To the Holders of 

OWENS-CORMNG FIBERGLAS 
FINANCE N. V. 

(now Owens-Coming Fiherglas Corporation) 

9% Guaranteed Sinking Fund Debentures due. August 1, 1986 

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Indenture dated as of August 
1, 1971, as supplemented, providing for the above Debentures. $1,000,000 principal amount of said 
Debentures bearing the following numbers have been selected for redemption on August 1, 1978, 
through operation of the Sinking Fund, at the redemption price of 100% of the principal amount 
thereof, together with the accrued interest to said date: 

DEBENTURES OF $1,000 EACH 

M 5 1255 239® 3556 4758 5905 7162 8334 9309 10546 1182S 12947 14177 15354 16290 17360 18850 

33 1269 2421 3574 4768 5931 7165 8331 9353 10590 11837 12956 14181 15369 16297 17361 18870 

72 1277 2441 3618 4794 5939 7197 8350 9355 10628 11862 12962 14303 15390 16321 17376 18889 

90 1313 2448 3658 4803 5938 7202 8355 9388 10658 11925 13001 14242 15394 16332 17379 18905 

113 132R 2467 3663 4820 6009 7229 8399 9399 10864 11927 13019 14257 1 5440 16350 17403 18911 

HI 1344 2473 3668 4823 6020 7238 8409 9410 3 0706 11941 13032 14290 15447 16392 17404 18948 

151 1396 2480 3670 4864 6038 7274 8419 9458 10727 11967 13M4 14292 15454 16398 17414 18950 

1C4 1400 2482 3672 4890 6101 72*4 84*8 9478 10728 12007 13072 14308 15471 16399 17434 18972 

IBS 1454 2539 3680 4305 6139 7305 8443 9462 10767 12015 13118 14334 15481 16420 17450 18999 

li'l 1459 2540 3707 4911 6142 7315 8445 9498 10851 12006 13127 14359 15489 16446 17471 19010 

194 1476 2548 3717 4946 6177 7352 8463 9518 10864 12078 13129 14372 15502 16483 17481 19037 

246 1496 2599 3722 4995 6196 7376 8473 9594 10879 12079 13195 14389 15528 1648G 17493 19041 

312 1497 2642 3793 4997 6204 7381 .8509 9607 10886 12083 13211 14417 15532 16488 17499 19095 

316 1514 2645 3815 4999 6213 7401 8553 9628 J0903 32108 13212 144CC 15549 16517 17523 1912S 

323 1564 2678 3837 3001 6214 7411 8559 9634 10940 12120 13213 14496 15560 16519 17545 19143 

326 1370 2708 3843 5089 6259 7428 8567 9676 10952 12124 13225 14499 15593 16S62 17571 19180 

363 1577 2714 3849 5119 6271 7467 8572 9G8S 10961 12X42 13247 14502 1 5600 18S64 17578 19205 


l-A'n-i-e Cli*»in«i 
|iri.-e ' wITer 


\ Ctmtna! 

offer : 


Ilf 

750 

98 

— 

113 


. 152 

til 4 

800 

48 

— 

. 72 , 



! 94 

ill 4 

850 

IS 

— 

44 

2 

. 68 

Ilf 

900 

2 

— 

22 


50 

< "iljrl. I'lilHli 

140 . 

6 

10 

14 

— 

: 181; 

1 'liu-ll 

160 

u 

. • 

6 

— 

10 

I*. 91'. I..4.I 

160 

9 

16 

• 17 

14 

20 

«. 'in--, i.rtiii 

180 

H« 

52 

7'r 

39 

■ 13 

i. •4iri.snl.i- 

100 

15'* 

4 

' 20 ■ 

— 

• 2H- 

«. ■■ii'ia.il-l- 

11C 

7 

— 

12>: ■ 



• 15 

i ..in Hi i,i,l-. 

120 

o 

A* 

. . 

7 

_ 

. 10 

t. ■■iirtsnbl. 

130 

5» ■ 

40 

4l£ 

6 

' 6‘* 

• ■ |J ’ 

220 . 

34 

— 

■ 40 . 


47 

i:w 

240 ' 

J4l j 

— 

26 

— 

34 

l.Ki' 

260 

4i« 

- 

14'* ; 

— 

23 

i : Ki 4 

2 eo • 

I'-: 


7 



14 

Itimi'i Vi-l. 

100 : 

5N 

65 

1 10i? 


15 

I.smel Mm. 

110 

Uk ' 

. 5 

■ 6 . 

49 

9U 

iJmnil Mh. 

120 

's 


Sl 3 ■ 


; 6 


Recent Jssus 13 3. r» JinpenM WOOp -33J1 

Totals 53 L sq iji^ Turner &'/Newafl..-.£l- • la__-: ^gOSF - y 


IT-ACTUARIES SHABE INDICES 


These indices are the joint compilation of the Financial Times, 'the' Institute 

and the Faculty «f Actuaries . 


EQUITY GROUPS 
GROUPS & SUB-SECTIONS 

Est 

Kind Dp 

Figures in parentheses show number of Day's Vleld% 

stocks per section No - Ch %* e ^ 



l-iihl St--. 
1^11,1 Jw*. 
I-HU-I W. 


llxrk, 1 dp. 
Olid l 
sin’ll 
411.41 


• 330 

44 

25 

50 



5b 



371p 

360 

15 

7 

25ij 

15 

34 

5 

. 390 

3 

15 

12i- 


191* 

-- 


, 420 

*2 

— 

41* 

-- 

13 

4 


180 

24 

— 

28 

— 

31 

2 

202 p 

• 200 

51; 


13 

4 

17 

— 

.. 

. 220 


10 

41; 



8 




120 

211* 


251; 

_ 

29 

2 

14 Ip 

140 

5 

X 

101* 

1 

151; 

— 


160 


— 

4 

4 

81* 



500 : 

46 

5 

64 


76 


543 p 

550 • 

n 

10 

27 

35 

43 


600 

i 

— 

12 

21 

22 





265 


190 


125 




413 1578 2738 3801 5123 6277 7472 8580 
427 1591 2745 3935 5147 6265 7490 8636 


9706 10965 12156 13274 14554 15605 16565 17696 19254 
9738 10970 12184 13295 14564 15617 16581 77717 19277 


431 1608 2751 3952 5148 6295 7497 8G3T 9317 10377 12190 13297 14574 15641 16701 17700 19305 

441 1622 2788 3965 5170 6315 7527 8672 98.12 10989 12207 13320 14590 15651 18718 17768 19311 

442 1660 2790 4041 5215 6318 7547 8717 9846 11004 12220 13381 14603 15669 16732 17795 19315 

461 1634 2795 4052 5217 6321 7568 8728 9854 11016 12240 13383 14612 15675 15750 17798 19321 

463 1693 2832 4079 5218 6377 7637 8746 9857 31076 12247 13396 14657 1 5706 16755 17824 19350 

489 1704 2848 4098 5223 6413 7631 8808 9858 21077 22294 23410 14680 15713 16768 17356 39366 

493 1741 2869 4110 5239 6417 7135 8820 9902 11092 12296 13413 14693 15730 16773 17858 19412 

536 1742 2890 4185 5260 6430 7672 8861 9908 JI163 12317 13414 14717 15737 16789 J79L2 29456 

SSI 1754 2891 4204 5269 6438 7683 8*63 9911 11179 12346 13418 14761 1574S 16800 17922 19462 

553 1774 2904 4211 5321 6457 7710 8692 9918 11189 12361 13473 14771 15783 16807 1 7939 19470 

590 1788 2906 4216 5322 6484 TT19 B901 9982 11201 12398 13493 14776 15796 1G84D 17971 19500 

604 1809 2908 4231 5352 6400 7720 8904 9986 11226 12429 13521 1479C 15833 18830 18013 19529 

663 1310 2914 4262 5371 6522 7723 8906 9989 11250 12456 33523 14847 1 5849 16873 18020 19530 

702 1867 2944 4303 5394 6533 7796 8923 10008 11252 12478 13525 14855 15860 16682 18024 19532 

707 1972 2962 4346 5416 6539 7797 8946 10022 31272 12520 23534 24876 15866 36916 38078 29560 

711 1873 2976 4348 5417 8548 7806 8948 10020 113*8 12511 23594 14860 15874 16935 18128 29573 

729 1874 3029 4360 5443 6556 7829 8951 10025 11304 12515 13595 14914 15876 16940 18129 195*4 

764 195 1 3040 4394 5446 6S09 7834 8954 10036 1134S 12544 13618 14959 15332 1SS5G 18136 19594 

7E6 1958 3075 4426 5455 6634 7891 8955 10037 11380 12545 13642 14960 15*34 18060 18175 19614 

793 1961 3079 4429 5464 6677 7914 8972 10055 11383 12547 13644 14973 15075 16974 18224 19617 

849 1973 3083 4455 5472 8695 7929 8983 10083 11399 12563 13645 14981 15978 16987 18246 19660 

862 1975 3103 4479 5503 6768 7934 8986 10171 11478 12622 13656 14996 15990 17017 18247 19675 

865 1982 3116 4485 5514 6725 7938 9042 10181 11487 12635 13673 15003 16008 17044 18274 19744 

905 1994 3124 4487 5548 6745 7947 9043 10198 11515 12673 13732 15019 1 6009 17055 18316 19749 

933 2013 3141 4527 5568 6704 7964 9060 10218 11517 12683 13765 15054 16042 17068 18325 19754 

■:-42 2014 3184 4541 5573 6781 7971 9072 10242 11521 12736 13773 15076 16051 17075 18328 19787 

944 2030 3216 4381 5590 6*04 8014 9086 10267 11540 12739 13789 15108 16053 17134 18342 19768 

961* 2046 3221 4584 5591 6817 8050 9088 10339 11566 12742 13793 15141 16058 17137 18347 19773 

978 2069 3256 4585 5644 6849 8039 9102 10367 11594 12753 13833 15150 16088 17147 18372 19810 

1024 20S1 3275 4601 5652 6860 8058 91*4 103C8 11606 12766 13856 15172 16117 17160 18417 19843 

1030 2094 3296 4603 5657 6879 8073 9149 10369 11619 12785 13869 15188 16180 17169 18424 19860 

1048 2111 3306 4625 5737 6925 8092 31 5 1 10371 11640 12307 12391 15205 16172 17215 18437 19861 

10*4 2160 3352 4649 3744 6926 0121 9169 10426 31535 12823 13922 15229 16174 17228 10459 39*08 

1094 2167 3369 4660 5749 6936 8150 9172 10434 11711 12832 13952 3523! 16187 17336 18517 19913 

1132 2203 3308 4704 5751 7017 8152 9188 30441 11719 12849 14083 15242 16197 17246 18536 19926 

1162 2210 3402 4710 5762 7018 8179 9242 10452 11746 12850 14097 15246 16212 17200 18546 19963 

1173 2235 3464 4718 5826 7025 8183 9261 104*7 11757 12855 14105 15257 18221 17266 18573 19978 

1209 2297 3468 4717 5849 7069 8189 9265 10479 11781 12066 14110 15304 16257 17280 18742 

1232 2305 34R7 4732 5851 7101 8234 9269 10494 11813 12389 14159 15330 16271 17324 18831 

1243 2323 3495 4753 5879 7136 8283 9275 10539 11814 12906 14170 15333 16281 17356 18840 

Chi August 1, 1978, the Debentures designated above will become due and payable in such coin or 
currency oi the United Stales of America as al the lime of payment shall be legal tender lor lhe 
payment of public and private debt*. Said Debentures will be paid, upon presentation and surrender 
thereof with all coupons appertaining thereto maturing afier the redemption dale, at the option of 
the holder cither i a) at the corporate tnut office of Morgan Guaranty Trust Company of 
New York, IS Broad Street, New York, N-Y. 10015 or t h i subject to any laws or regulations 
applicable thereto in the country of any of the following offices, at the main offices of Morgan Guaranty 
Trust Company of NW York in Brus'xls, Frankfurt am Main, London, Paris, Zurich or the main 
offices of Bank Mees & Hope NY in Amsterdam, Kredietbank S.A. Luxembourgeoise in Luxembourg 
and Banca Yonwiller & C S.p.A. in Milan. Payments at the offices referred to in (bl above will be 
made by check drawn pn a hank In New York City or by a transfer to a dollar account, maintained 
by the payee with a bank in New York City. 

Coupons due August J, 1978, should be detached and collected in the usual manner. 

On and after August 1, 1978, interest shall cease to accrue on the Debentures herein designated 
for redemption. 

OVENS-CORNING FIBERGLAS CORPORATION 

Dated: June 28, 1978 

NOTICE 

The following Debentures previously called for redemption have not as yet been presented for 
payment : 

DEBENTURES OF 51,090 EACH 

VS 30- *47 1031 n«0 1IBB 1428 32B2 5449 S46 0 <1655 s£OS 8334 8338 9523 10022 :972<; 13595 
743 313 1134 1159 1315 321- S44-. 5460 6654 6676 8226 8337 9467 9524 14068 19977 20000 



RECENT ISSUES 


EQUITIES 


I - •l |, ‘ 

t’rnv = J i- 

!•' ~ lliali Iw 


100 K.r. — iiti,* 

■ - *1. 

■ • K.r 21.7 . k-j. 

t9B L 10 M.9 12 

■ * V.r. 14 7 ■ :-f 1 

AH 7 8 Hi- fin 

■ - K.l\ 7/7 :«|. ' 

L100 — - iuJia, 

17.55 l it? 28.7 tt 


:i i j 9 i '.* 1 » || "i*«»sii *i ti.\ >”> \ m. I'hir w&::::::::::;iM l, i ® 

; il.i7.Sa L 10 28.7 tt lirt<>n i tt*Kt |^||«|. hi-l. Ixgj.... 11 I 64 

•' 9 jliimi Ul"'i ; Kmr\n-i* K»i». li.hti® ll,H. u P nj k 

' ' * ! z5; ? "‘SM .'ininlleNI Milti-ll- JiljJCuiii. Vnf. 99,,} 

.99 L3I3 43/8 ‘Mlj; | tl 1 I 4 U,. It,,,,,, nil Ilfs. K«d. Is**, 47 

■* K.l*. :ll.-8 101 : PI IJM.MIV \ L... -.=*v I’rt . • lOil 68 

— -- lw*!’ 1 95|. 11 litre 1 K.i 11% I'M "llO'Sp +19 « 

" " 1 J' !!- ,**'2 ! :T ! !,1 I' .\iiw»-nii.|^Oii„. Prifl 1 21 

■ ' ■ v.«. 30.6 . Ins : to* I'pmsi* ifijj “ fiwi pref . ■ ■ 70 

4 ■ F.f. 7.7 Iu 2 « Vili'k <H. \ J.I 10% Hrf i 

109 l_.V. 21,7 108 |i 109f ItiHnnsun Hs»p. 11^ I’ref ^ I 


61 | FINANCIAL GfUHJFflM) 

62 


1:99 tbO 23/8 4-11 

* ‘ — : 1 'J't 

■■ K.l'.: 11. -8 lot 


* ■ F.P. 7.7 
109 IM\ 21.7 



^RIGHTS” OFFERS 



99 | ALL-SHAEE CNDKX(873) 


FIXED INTEREST PRICE INDICES 


British Government TJ^ 

27 % 


r.i. 1st 7 7 Ivj tin ttroni t. hrnn.-nU ' .. 

77 18-8 H|»m (•■|>iii i Hntivli T«r PimliK.-O 
'*• 5 yJ ti’iUni' MumilreUinii 

U*. 16 6 21'7 lt»l 2 , Hi I'nrk In. Is 

- 30,6. 2S.8 II) til Tam lew K-i, 

7.7- 18,8' 2|im 1Zf,l,;H«rl ui'IU 

’*11 ‘ ■ , — „ I|W"iNwiI.i% 

I- P. Ib.o: 21,7.162 154 -H-w umi lAIvsitiHlvri. 

Vi 3,7 1 28.17, l3l|mi l 9ls|ni> , H.\iiMii ll.Jti;.) 

-• — • -1 ly A |atn' 

■ 11 ’7.7 28|7, Ki|iiii| li>|iiiiSki:li-|||»»y 

VI . . — ; fifin' 3|/nilSfiiinn,r t/niu// 

-- - KJfi.i; aw iJ... a. \iv .... 

- — ' Cfi'iii: ISiiriilAviirili'^fnln* 

' 11 -• ~ . 24|ini 2 £|jiii; Ui». A. X/V 

* r. 3.6; nr, 25; : 2il 2 .»v.-,.v 


Hennnci.it mn -laic usually Iasi lay r D r dealiiw fn?e ot siamo duir. h Kfcures 

ssisrsEsrst, rsszrjrx* tzrssssL “ ^ ” 4 ll5) bj * *««» «-» i «.« i ■ 

" “ enlTr " ,PreEi( . S) 5158 *•” 

"i -Tt, ^£s; , ^s. 4 ^rr-sss t Jjrrt 11 and ,Bd '- p, ' e[s - C20) ™-“ i5 - M ’<>■«! ™.»! i 

hy «-a\ ol ..anii-ilisSMan. *• Muumuin lender price Si RcmirtidiiLvil e- ' ‘ 

N“ l ^r"'Tr.nr^ rt, Tu?i' l i: a, ' , ''LT, ni ' ,r ° r 1 ,I ' k, '-° ytr Ui| lmratacuon’. q tR^mpt.nn yield. Higiw and icvw nmred. base data valoe£ aBd " 

w • p "~ i ssl 1 wss ft. - * ^ ^ "«**»■ «*« 




ludex 

No- 

Yield 
% 1 

- 26 j 

22 

21 

87.25 

1 12.97 

87.54 

57.40 | 37.43| 

-5«29 

51.3B 

13.77 

81.34 

51.52 1 51.66 

Ok: is 

70.68 

1 

13.09 

70.64 

70.581 70.68 ] 

l 

71.17 

















































































tf Unlisted aecurily- 
F Price at time c* suspension. 

5 Indicated dividend after pewHnK scrip and/or lights iHMM 
cover relate* lo previous dividend or lo recast. 

*• Free of Stamp Doty. 

* Merger bid or renrgaoisatton to p ngn ta . 

* Not comparable. 

* Saroo interim: reduced final andlo# reduced earning 
indicated. 

f Forecast dividend; cover on earnings updated hr late* 

interim itatcm^nt. 

t Cover allows for conversion of shares not now ranking far 
dividends or ranking only for restricted dividend. 

H Cover does not allow for shores which may also rank far 
dividend at a future date. No P/E mho usually provided. 

* Excluding a final dividend declaration. 

+ Regional price. 

| n No par value. 

a Tax free, b Figures based on prospectus or other official 
estimate. c Cents, d Dividend rate paid or payable on part 
of capital: rover based on dividend on full capital 
e Redemption yield. I Flat yield, g Assumed dividend and 
yield, h Assumed dividend and yield after scrip issue. 

J Payment from capital sources, k Kenya, m Interim higher 
than previous total, n Rights issue pending q Earnings 
baaed on prebnunuy figures. r Australian Currency, 
s Dividend and yield exclude a special payment, t Indicated' 
dividend: cover reisles lo previous dividend. P/E ratio based 
on latest annual earnings, a Foreran dividend: cover based 
on previous year's earning*. v Tax free up lo 30p in the C. 
w Yield allows for currency clause, y Dividend and yield 
based km merger terms, i Dividend and yield include a 
special payment: Cover does not apply to special payment. 
A Net dividend and yield. * Preference dividend passed or ■ 
deferred. C Canadian. D Cover and P/E ratio exclude profits 
Of UK. aerospace subsidiaries. E Jamie price. F Dividend 
and yield based on prospectus or outer official estimates for 
1B77-78. G Assumed dividend and yield after pending scrip 
and/or eights issue. H Dividend and yield baaed on 
prospectus or other official estimates for JOTS- 77. K Figures 
baaed on prospectus or other Official eaUmsKs for 1B7S. 
V Dividend and yield baaed on proapeetus or other official 
estimates for' IflTB. N Dividend ami yield baaed on prespectua 
or other official estimates for 1019. P Dividend and yield 
based on prospectus or other official estimates for 1077. 

<1 Gross. T Figures untuned. V No significant Corporation 
Tax payable. Z Dividend Utal to dale. tf Yield baaed on 
assumption Treasury BiU Hale slays unchanged until maturity 
of clock. 

Abbreviations: dex dividend; m ex scrip issue; vat rights; a ex 
all; >t ex capital dirinlxmon. 


u Recent Issues ” and “ Rights ” Page 38 












































































































































































































42 


PROJECT 

MANAGEMENT 


BERNARD THORPE 


LONDON, SW1 TEL; 01 -834 6890 


Wednesday June 28 1978 


flomraHHAHMiro 
JEjw«ht . • • '• ‘ 

4.Un80R»nTRRB 
i NcuwummrcianiRCArn 

Anrstzvpum .. E 
Brnnw-ma. . 1 

A OK DfSTAHCC 1 



North Sea oil output Record exports 
meets 60% of needs cut U.S. trade 

BY RAY DAFTER, ENERGY CORRESPONDENT QOn TCfe r till 

IODUCTION of crude oil from i ■ ‘ **** 


UEX COLUMN 

4 ~ 


PRODUCTION of crude oil from 
the UK sector of the North Sea 
has broken through the Xm bar- 
rels a day barrier for the first 
time. 

This means that about 80 per' 
cent of Britain's oil needs are 
being met from its own fields. 

Mr. Anthony Wedgwood Benn, 
Energy Secretary, yesterday des- 
cribed the build-up in produc- 
tion as a “ magnificent achieve- 
ment." It was a “ significant 
milestone on our way to making 
the UK into one of the world’s 
major oil producers." 

The record May production 
rate of 1.1m barrels a day makes 
the UJC. the world’s 16th largest 
oil -producer, ranking ahead of 
Argentina and several member 


„'000 Barrafa/c 


Minion Ton nw M 


BY JUREK MARTIN, US. EDITOR WA SHING TON^ June 27. 


UK Gross Crude Oil Production 


. i. it i 

Sfarf-up 6 f fields 


rfUUllCllOil ' / THE U.S. trade deficit narrowed suppliers sought to beat the 

/ — 50 appreciably- in May to $2-2 4b n im piemen tation of the new 

A# (£L.21bn). the lowest figure system. 

^ since September last year and Coincidentally, the Treasury 

: 40 $523m (£2S2.7m) below the announced it -was investigating 

■ f i • a April level. ~ five case* of the hnport of steel 

# j_ T ' Although warning against (none from Japes 1 at below the 

/ g” “j w reading too much into a single reference- prices. It may institute 

• g g ; month’s performance, Admini- anti-dumping proceedings as a 

| 2 on stration officials hope that it will result ’ 

5 mark the start of a trend to The reference price system 

smaller deficits that they pre- actually took effect in February, 

10 dieted would show up as the year tot because of unavoidable 

progressed. . . administrative delays a grace 

In May, exports rose by about period, for flat rolled produces 
1 1 ’ 1 0 1 per cent to 811.751m, an all- and rods was extended until 

1977 1978 time record, while imports feU April 30. • 

"" 3.5 per cent to a fraction under Imports of cars, coffee, meat 

$14bn. Over the first five months and machinery also fell- in May. 
Stockbrokers Wood. Mackenzie of the year, exports have been Purchases of foreign oil, how 


states in the Organisation of $14bn. Over the first five months and machinery- also fell- in May. 

Petroleum Exporting Coun tries, are expected on stream later Stockbrokers Wood. Mackenzie of the year, exports have been Purchases of foreign oil, how- 
Britain will soon be extracting this year followed by Buchan, reported that the southern por- r unnin g at an annual rate 7 per ever, continued to rise, going up 
as much oil as Algeria or Mexico. Cormorant South, Dunlin ’and tion of. Brae might be regarded cent higher than last year.' '' in May by nearly 8 per cent 
Mr. Benn said the build-up UK Statfjord in 1979. Murchison .as a commercial field with some The principal spur to improve- (seasonally adjusted) compared 
was proof that the partnership in 1980 and Fulmer and Tartan 200m barrels of recoverable oil. meat last month lay in foreign with April, which had ■!» 

between the Government, the in 198L Another broker, Gilbert Eliott sales of agricultural items, shown an appreciable advance, 

oil companies and the state- it is known that several off- said that reserves of South Brae mainly food, live animals and Last month’s Improvement still 
owned British National Oil Cor- shore groups are . evaluating might be nearer 500m barrels, soyabeans, though some in- means that the trade deficit this 
poration was working success- other fields which could'.- he Much industry interest is dustrial sectors, including elec- year is ronniag at well above 
fully. declared as commercial ven~ centred on the exploration area trical machinery and metal 1977s record pace.- In fact, the 

Since oil production on the tures in the near fatore. They to the west of the Shetland fabricated structures, also did gap has widened since May last 
UK side of the North Sea began include, the Phillips Group’s Islands, where British Petroleum well. ' year produced the smallest 

three years ago some 70m tonnes Maureen Field, British Petro- has been drilling on block 206/8 A major factor in the fall hi deficit — a mere 9647m. 
had been extracted. More than leum’s Magnus Field — a dose to a well which flowed at imports was the sharp decline Over the first five months, the 
half of this oil was produced £L25bn development approved the rate of 2JBOO barrels a day in purchases of foreign iron and deficit hn«t amounted to $14.77bn, 
last year. by the BP board but still await last year. BP said yesterday that steel sheets and plates. well up on the $825bu of the 

Of the 38m tonnes produced ing Government sanction — and the drilling rig Sea Conquest had This, the Administration same period last year. 
last year, 55 per cent was Mesa Petroleum’s Beatrice not yet finished operations, believes, reflects the fact that Extrapolating the 7 per cent 
refined in the UK. The remain- Field, which should - receive- However, there are strong indi- the reference price system armnnal rate of increase fn 
ing 16m tonnes were exported government approval within the cations that BP is drilling on a covering imported steel was exports and the 12 per cent 

to the ■ Bahamas and Nether- next few months.'. large structure, containing sub- folly effective in May — In the advance in imports achieved so 

lands West Indies (mainly for In addition it is expected that sianttel quantities of oil which first four months of the year, the far this year implies an annual 
re-export to the UB.); to Marathon and its partners in the could extend into several neigh- trade figures had shown sharp deficit of over $35bn, JlObn more 
Belgium. Canada. Denmark, Brae Field on block 16/7 will touring blocks, among them increases in steel imports a£ than last year. 

West Germany, Finland, France, soon be in -.a position at least to' Amoco’s 206/9. Elf/Conoco’s 
the Netherlands, Norway, consider a development scheme 208/7 and Exxon’s 206/12 and 

Sweden and the U.S. for the southern section of 206/13. Exxon has already made Tff’W J a A . *■ 

There are nine oil Adds on the structure. Industry reports a discovery on what is thought to 1^/ ACT | - r £)l*|||Q'|l T1*Q /I A 
stream with a further nine suggest that the latest Brae well be a different structure in block . f f VtJ l \J C1 Bll filli IlilUv ' 
under development. Two of — tae 13th to be sunk on the block 206/12; this well flowed at the ' 

these — Ninian and Heather is providing encouraging data, rate of 630 b/d. ! _ ’ _ # _• 

surplus fell in May 


[ ' /•• ■ •• 

BAT now thinks . tKat tig*?* 
attributable profits for 18774 Rkxj 1| 
will “probably” fall a birshOff SwT 
of last year’s £21Qm, whertojfSfifa 
three months ago it was hoping^ 
for an. unchanged outre me. Buffr 
yesterday’s Interim statement'. ■ 
may err on the conservative side t.JH 
especially if, as now .sop^a 
likely, its recent move toe raSe-^R 
prices in the U-S- is followed byf." B 
the competition. Any shortfinV! B 
in earnings is likely to 
strictly marginal. 

There are three main reasc^ H 
for this sluggish performance. . B§ 
Volume growth in tobaqeOv-K 
around the .world is 
btmyant (at 4 or 5 per centj^; B 
and ; the. acquisition of tber BE 
Lorillard bra n ds cotfld have^B 
added roughly £7m to the half" gff 
year figures. . . But operating, wg 
profits on tobaeeo are tody fra^?.. 


^ wiU be implemented here as 
low nwe VI fn rotating to consolidated finan- 

Iex rosc " " ^ statements. This being so. 

number of intriguing ques« 

D lions arise. 

- Article 33 (b) of the direc- 
tive, for example, states that 
fixed assets with a limited use- 
ful economic Ufe shall he depre- 
dated. It would appear from 
this that property investment 
Companies, while winning their 
battle with the Accounting 
Standards Committee, may have 
lost' their war to avoid having 
to depreciate buildings. It cer- 
tainly bodes 111 for those other 
companies like breweries (and 
maybe hotels?) which are con- 
templating: whether to ask the 
ASC for exemption from the 
depreciation standard, SSAP12. 

' Another danse far some com- 
parties to think about is article 
: _• ■ 41.12 which more or less says 


Muzorewa officials die 
in peace talks bid 


BY JONATHAN CARR 


BONN, Jane 27. 


BY OUR FOREIGN STAFF 


WEST GERMANY’S trade sur- also down in May. It totaHed 
plus dropped sharply in May— DMfiOOm against DM1 .6b n in' 
and the accumulated surplus for April and DML2bn in May, 1977. 
the first five months is now However; the c ur r ent account 
lower than in the same period * surplus for the first five months 
year earlier. - - at DMS.4bn (£L4bn) was DMlbu 

It would be dangerous to sag- (£260m) higher titan in the same 
gest on the basis of the latest period last year. Despite the 
figures that the trend is ndw trade surplus fall, the new 


THE SALISBURY Government’s ment agreement, to which Bishop Conservative leadership was 
apparent inability to end the Muzorewa and Mr. Sithole are urged at a meeting of the party’s 
Rhodesian war was underlined parties. Foreign Affairs Committee at 

afresh yesterday when Bishop In Salisbury yesterday, Profes- the Commons last night to l ?3£ l wl 

Abel Muzorewa’s United African sor Stanlake Samkange, spokes- ensure that Mrs. Thatcher's l °n i 

National Council announced that man for Bishop Muzorewa's personal envoy to Rhodesia took 

four of its officials had been UANC, said the four dead officials to Salisbury a positive message 301111 s trade 

killed while organising peace had been killed last week trying of support for tire internal the W 

talks with guerrillas in ffie bush, to organise talks with guerrillas settlement ' JffifSS 

At the same time, the Govern- jn the Southeast of the country. A major debate on Rhodesia tta 

ment disclosed that a further 0“ was tt. Sa > SJS!fto!Si«2?i£E WeSr^SJSJ simiS SiSS hectic S. Indeed th“ German 

37 people had died in the war cmanka, a uANL central com- mons rises for tne summer recess enep on ic and 17 Thev eurrenev now stands at a lower 
during the previous 48 hows, xm ,^l J m ^; ber - I f*P°^ ble at * e ®“d of July, and there us5uldete5refortto SST^gainst ffiSe of k? 

including 19 black civiUans. cultural and social development ns pressure : to a motion cen- ^ r S , S l J e ^i t d a e ^jS^ trading^tiSs such as Prang 

The reports came amid pres- V<4iii*U> Tinmf ^artv manaeers were not com- critfcs-of West Germany’s big— Italy, - Holland, Switzerland, 

sure in the Conservative Party VelllCie DOrat lru& wsnag . c0 “ and, in the first third of this year, Sweden and Japan than It did 

in London for a Commons Professor Samkange could not a increasing— trade surplus. at the end of last year, 

motion censuring Dr. David give details of how the men died “JJJ ‘ & The trade surplus in May But neither the trade figures 

Owen, the Foreign Secretary, or say who was responsible. But “°“i n totalled DM3bh (£781m> — with nor the movement of the 

for his Rhodesia policy. Mpc unofficial rpnnrts reaching salary, s imi t a r to to at agomsi aTnnrl , La-Hi • miw 5>m TlMihehiwnsrlc over onlv a fmw 


for ms Rhodesia policy. Mrs. unofficial reports reaching exports worth ■ DM22fibu DentscnemarK over omy a few 

Maragaxet Thatcher, the Co user- London said they had been shot 01 (£5B6bn) and imports worth months can teH the full story, 

vative leader, is considering by guerrillas at a pre-arranged “ e *x<mequer. a ronmgnt ago. Dl£l9fibn (S.OTSbn). In April, Many German exporters claim 

sending a personal envoy, prob- venue near Fort Victoria for Mr - . ca u ag n an nao xomaKe^xnai the surp j us DM3Bbn and in that the accumulated -upward 

ably Mr. John Davies, shadow peace overtures. 811 r 8 ? 0 , . c P?T deil ? e n May last year DMSfibn.' The movement of the Dentschemark 


DM22fibn Dentschemark over only a few I 


jmt. L. au ag n an naa lomaRe^inai fte surp j us DM3.3bn and in that the accumulated upward 
^ M .rear mates.' Tie movement rt the DraBcheoark 


Foreign Secretary, to Rhodesia A : military spokesman said an immediategen erai ejwrtion. tr ^ e for ^ first -five over years means they are now 

on a fact-finding mission. troops had found a burnt-out iSrL. - months totals DM15bn (£31906bn) hanging on to foreign markets 

Far from ending, the Rhodesian UANC vehicle, but it had not **** Jf against MU5.4bn in the same only with reduced profits. That 

war appears to be increasing. The been established what, had e y ecte0 [ t ° z* ne period of 1977. ' ~ means less funds available for 


war appears to to increasing. ±ne oeen estaousned what . naa period of 1977. ' means less mnos avauauie ior 

latest deaths follow the killing happened to the occupants. 1^"?“ The surplus on current investment and less scope for an 

last Friday of 12 British Announcing the 37 new deaths *25^225X21 account — after allowing for economic upswing at home. - 

missionaries and their children the Rhodesian Government the traditional Gennandeficits J^ianese surplus forecast 

near the eastern border with blamed those of the black ,* on sKviceTaod toSSs — was Page 5 

Mozambique. Earlier this mouth civilians on the nationalist gusal to condemn the Patriotic — 113X181 - — — — ' 

22 black civilians were killed at guerriiias.- A military com- rronl: f ? r * A he . ™ ss i°® anetf " 

a village near Salisbury during munique said one family of eight, massacre butins eonunnL^ two- TTT - . " • 

a dash between security forces headed by a fanner, had been committal attitude towards the I I m Afni* ITIClirAlM ChOW 

and ‘ guerrillas. In a separate lined' up and shot at their home- mtenial set&ernent ^ 4-/ JL^. 1XJ.W LvIJL UI9U1C19 ijlLU vf 

incident at the start of June, four stead in central Rhodesia. The • Twentyone mends _and rela- . _ » *»• 

supporters of the Rev. Ndabaningi bodies of the family,, which 27“ 01 toe fMnlies killea in the -L 7l lITl IllCC f Al* ■ 

Slthole’s Zimbabwe African included three children, one aged ® im Pentecostal Mission dwAiUlll lUoiJ AvvJL YCol 
National Union were killed by 6ix months, had been burnt in a ■ - Loudon for • C „__ T - - 

guerrillas as they campaigned in . hut Rhodesia yesterday. BY ERIC SHORT 

favour of the Salisbury settle- • Richard Evans writes: The Gloom in Salisbury Page 18 BRITISH insurance namnnies cut to £28m front £37.6m in the 


tionally ahead at £3tSE^. e second six aontla. ' - ' wbich more.or less says 

reflecting a further contracttoQ' Af^ca ^ an impor- that where a company s profit 

tomaxfcet store in J»J?^g^:tant recovery area for the group-*® 3 ^ 

down from Iff to 1R3 peu.caat a -_ { . ^ with Stanbie pushing to obtaining tax relief the 
over the year— and lower pro&tx oneratiiK profits UP 42 per tW* distortion must be 

in the UK. Here, BAT £3£ dialosed. Again, article 34.2 

says that the launch absence of the prevteus amortisation of 

Express 555 will cost no wtgm Glen Anil provi- swdwfll over a penod which 

than £5m“tMa year-hut it at home the Hodge does not the., useful 

also had to cope with -AniQ^Soup must have- had a goS eco “?i e ** . 

profits on exports, vibich *re thanks to filing interest 4 ^ rho ^,. there ^ be impor- 
invoiced in dollar. Stoproeiiwiredit de- for shareholders 

In addition, price conmefe Hnwnvar it will depend on which of the 

tiffin inthe UK L fometo for the 

trading operations of txa&ifeb SSishnesoTvwrid tratewfts ? * Dd /% L,*“2! unt S 8 J? latcd 
tional Stores marginally Jm-meTdouSiiant influence. And f ®£ ** °P° i _ which P™ - 

ffie red. And Gtatota 5^5 income fttm associated com- J^form aaJ*o(eB» 
HE^stm s*m to be.to^ panies f e U bade In the second JJELf '.tSShS 
protdems. The final point months, apparently because ca * e * or ^f anything 

that BAT’S tax charge is sej^ '-f poor- ^ deM experience in new -. Elsewhere ' there a w a 
rise from last year’s tamaraRsi. wp«* . requirement for companies to 

low figure. ‘ vV. “T t ^s D the stores now yieW 0X1 ^ortam post- 

- Looking at. the positive ride; y/ierceiA and thep/e Sno btlJUIce evenls and 

BATto^creased^dtridS *n!i! ^ of their future 

so far by a ijuarter, and teS* Sutious rating, but dearly the Jf Vel<5 ?“ e Sb , And in ' 

“c ontinuing desire” to comsfifc , ar nnans. Merest is likely to centre on 

sate shareholders for^H bl^ ofVriSteto» tsrtohi whether tte Government will 
ravages of inflation. If ^ S <* the direc- 

aRowed to do the tome -wB-SSS tiSwe/ m deal *•* «'■ concessions to ease dis- 
the fun year’s dividend.^ Ztu closure and audit requirements 


the fun year’s dividend, tie may not tofhudried until early “““re and audit requirements 
payment would be wen 4 for waller companies. 

twice covered and the yield.at prospect of » niaemonth trad- T|avml Q C m ;fh 
310p would be 8 per cefit . period adds a little fwther ^ oimth 

. , g -to- the-arittoetical uncertain- Coming just a few weeks after 

Standard Chartered Se! - ‘ : w - N : Shape's capital recoil- 

. . , struebon scheme the news of a 

Hopes, of £13 Om pre-tax from Tfafi FoHTul Directive broadly similar proposal by 
Standard Chartered proved a s - Smith b ^ns conflima- 

little optimistic, and a figure of tion that the Inland Revenue is 

£I260m reflects the absence of taking a more flexible attitude 

any significant overall growth to the distribution of surplus 

in the second six months. AH ^roetivs on company arcoimts companies to their 

but £L4m of. the advance from » »owto reminaerUiat Briten shareholders. Smith is paying 
the previoita yearis £1 09.9m <an dec * de lts own back £1.6m to shareholders, and 

cmne in the first halt . But it oo^>apy.law in a vacuum. the Revenue has accepted that 
looks as though there could The Department- of Trade has this is a repayment of capital 
have been a modest underlying still' not -decided exactly how under Section 460of the Income 
uptrend,, for whereas currency . the . directive wall be brought and ‘Corporation Taxes Act 1970. 
movements gave a boost to the into UK company law, but it is Both these cases show that a 
1976-77 figures, the firmness of to be hoped -that the measures* much broader view is being 
sterling took the edge off the though intended to apply only taken of what are “commercial 
group’s consolidated returns in to individual company accounts, reasons” for giving money back. 


Rent a KiENZLE 
computer for under 


BY ERIC SHORT 


Belfast may win U.S. car plant 

BY KENNETH GOODING, INDUSTRIAL CORRESPONDB4T 

THE GOVERNMENT may offer vice-president of General Motors he was then attracted to Ulster 
grants of up to flOm towards a in 1973. He is close to agree- by TJK Government grants of 
sports car assembly project in ment with the Northern Ireland up. to 50 per cent: of initial costs 
Northern Ireland which Ameri- Department of Commerce about which could total £20 m. 
can investors were warned was a setting up an assembly plant just Rut the - Irish TndncH-iai 
high-risk venture and in which outside Belfast Development Authority denied 

the Irish Government was un- Mr. DeLorean had been nego- S it' S totbid bv 
willing to invest ail the cash Hating with the Irish Govern- superior BritLh Brants. “We 
asked Tor. ment to take over the former examined the protect and were 

Behind the scheme i6 Mr. John Ferenka tyre cord factory in unw illing to invest « S 
DeLorean. who resigned as a Limerick. It has been suggested 1 tto AteSlLeonSSS 

~ i wanted." 

Mr. DeLorean’s scheme to 
build a high priced, high-per- 
formance sports car for the U.S. 
. ..... . market is backed by American 

UK TODAY Cloudy, bnght intervals. Max. investors who were told last year 

DRY. in S. Rain in N. M(! thzt 11 was a high^isk venture. 

Loudon, S£., Cent S. and S.W. N.^Wales, Lakes, Is- of Sn wilh 0 th* 

England. K. Anglia, Midlands, Cloudy, occarional rain, or SSj -0 ? 8 C ? m ‘ 

Channel Dl. S. Wales drizzle. Max. X5C (59F). SS?«n^ VtoZSz W. inv “ t .° rs 

Scotland. N. Ireland ■ who can. afford a total loss of the 

BUSINESS CENTRES-. becomtas SSS™.- 1 ??. 0 ? 111 !? 1 ° f 

—.,'1- T XT7 hHnhtar with ehnnwc V.v 1ST ShOUld apply. It was also 


Weather 


BRITISH Insurance companies 
lost £20m on their, motor 
insurance business last year, 
the British Insurance Associa- 
tion. (BIA) disclosed yesterday. 

The loss was the highest 
since the bad years of 1969 to 
1971, when the removal of 
mutually agreed motor 
Insurance tariffs resulted -.In 
unbridled rate-cutting. 

Nevertheless, Mr. Geoffrey 
Haslam, outgoing chairman of 
the association, pointed ont : 
.yesterday, last year's losses 
were only 2J3 per cent of -. 
premiums. The - shortfall 
reflected a deteriorating 
situation, hat had 

pushed up premium Income 
substantially since 1970. / 


cut to £28m from £37.6in in the 
previous year. .- 

Overall,, the underwriting 
loss on worldwide general 
" business fell to £54Jm, or, 0.9 
per tent of premfoms, from. 
£L50m hi 1976 (2^ per cent Of 
premiUHts). 

Premium Income rose by 6H 
per cent to £646bn. Investment 
income on gene ral > funds 
jumped by. £99m to £730m and 
. the net surplus of UK insur- 
ance companies oh . thetr 
general business Increased- to 
£676m from £481m in 1976. 

' UK : fire and ' aeddeht 
business showed an .Improving 
trend from the very heavy ' 
.losses In 1576, a l th o ugh fire 
damage. Increased in November , 


weekly! 


There were 14 per cent more .. .tod December, when the fire- 


BUS1NESS CENTRES 


19C (66F). that it was a hi 

N.W-, Cent. N. and NE. England, ^ . . 

N. Wales, Lakes, Is- of Man 

SSJl- who can afford 

Scotland, N. Ireland ■ 


Vdar v«uy. Dngnte: 

mM-d«r ' and-dwr (55F). 

•C “F -C *F onJ.- 

Amstrdm. C 12 54 Lnxcmbrs. C 10 H „ ,V” 

Athena S 30 M Madrid S 21 70 POliei 

Bahrain S 34 93 Maneh-'str. C U S — ; 

Barcelona S 19 88 MeOsoorne CUM 6 

Belrnr S 28 S Milan F 21 -W 

Belfast CUM Montreal C 3 3 

Belgrade C 17 « Moscow P 27 SI 

Berlin R 13 53 Munich CUM 

Binsshm. CUM Newcastle- C U 53 Alacdo 
Bristol C 14 57 New York H 15 77 AlUers 

Brawl) C 14 37 Oslo F' 31 70 Biarritz 

Budapest C 17 68 Paris C 11 91 Blackpool 

R 14 57 Perth C IB M Bordeaux 

S 39 ltd Prato? C 14 57 Bookwae- C 13 35 IMalasa 

CUM Reykjavik C 10 90 Casabinca. _ S 28 82 Malta 

S 24 75 Rlode J o S 27 SI Cape Town S 17 W (Nairobi 


^ ™ ^ ~ ssa-TEK 
s-i sna, “ d 


Brussels 
Budapest C 
B. Aina 
Cairo 
Cardiff 
ChkSUM S 
Cologne c 
Coonhasa. F 
Dublin . C 
Edtnhrch. C 
Frankfurt C 
GeDL'va R 
Glasutw R 
Helsinki C 
B. Rons C 
Jo'httrg s 
Lisbon S 

Jjmtta a C 


HOUDAY RBORTS 

SS ^ . J2& Ctoik^TlK by JOHN LLOYD 

2 H Alacdo BMW leraer c » » SQ ShS,, 8 ?? sooth of THE 4^00-strong- workforec at they would use to present a pro- 

a 77 Aiuen saw Las Ptas. s a 72 Jts Singer factory, Clydebank, posal: ter Ixrrestment over and 

21 70 Biarritz c 17 a Locarno f si to f rom Roman yesterday rejected the manage- above the £8m promised by 

g g K g I H g ™ent plan for a cutof more tton Smger and for toe : retention of .- 

i5 “ K c » SmSS? I m n tfSTsi-ISrSi w^ere tradi- 2,800 jobs oyer the next, four employment at presenrievela. ^ : 

10 80 Caaaninca. s a bm« | 24 73 has been m years. - If Singer refuses to provide 

27 si Cape Town 5 U w J * ® decune, with unemployment run- At a mass meetfiis, the Singer- any further investment, it is 

23 73 Dubrovnik T U 70 Nice S u ol SL^iSirath 8 ? Cent at f workers^vtoed 1 to «t -up* a^bom- expected that.. ; . the Scottish l 

is. 64. Florence c J7 63 ovo^ui f is w tne last ten rears of mittee to produce ah alternative Development Agency will . be 

E « n & ccS . strategy ter the plant In the next asked to invest in the plant. 

£ “ c'llS s 24 73 }f “iSi? 11 fe w montts. • Representatives of the Singer . 

s' m innsbruck R li 58 renerife s a ® °* L000. which Mr. John McFadyen, the shop workforce are to see officials of 

2 £ ^5-,. 112 «,“*?. Project stewards’ convenor at the plant, the Scottish Economic Develep- 

« « M s f s b S said afterwards ttotffie company meat Board today and-wfll meet T 

is. ei S-Ssanr. F— Pair, c— aoody. H^-Bain. “ ™ ™ r utv tiovemmeat is bad given the workers a four- a group of Scottish' Labpmr.MPs 


construction techniques and 
materials would be used. 

— _ — Mr. DeLorean’s original intern 
tion was to site his assembly 
y ' flay piaatto Puerto Rico. Now he is 
xidiMas [interested In a factory at Dun- [ 


claims last year In 1976, 
while the average .'cost of 
settling them was up by more 
than IS per cent 
Overall, insurance companies 
last year reported much better 
finding, especially in the US. 
Underwriting there,, for. 'many 
years a difficult area, showed a 

f irofit of £200J>00 against a 
c«s of £TL7m in 1976. fa the 
UK underwriting; tosses were 


men - were - on . strike, and 
difficulties continued in the 
householder account relating to 
underinsurance, subsidence 
and increasing theft clai ms . 

There were warnings from 
same' . BIA members that 
primnlum ' rates on household 
contents insurance would have 
to be-raised. 

Public naust pay more to insure 
home contents, Pago 8 


Singer workers reject cuts 


Sooner or later 
you wlirdedde 
to switch your 
accounting to a 
computer. With staff" 
costs the way they Are, the sooner 
the better! • \ 

If you decide to buy a KieozJe outright, tbo 

total cost is-£ll ,225 ot oti a five yeaf rental - 

con tr actor tinder £65 a. week. : r.'." ' v 
The Kreuzie 2060 Office Computer comes 
com pteic with systems-covennginvTSiang; Sales, 
Purchase andNominal Ledgers; Stock Contiol; 
Payroll and business management figures; - - 

The system is developed to suityour company 

and actual programs are demonstrated K> you .' 

before you place your order r 


Simple to Install 
The Kicnzle2(XX> 
is an office computer. 
Just move itinto your Accounts 
■'Department and awuy you go. 

Easy to Use 

We will soon. show your staff how to u->c 
your Kienzle. Two months from now Jt 
.couki be running in your office with. the 
' minimum of upheaval. . 

Seeing is believing 
' Visit some of our users and see foryour- 
>clf jtist hovva KienzIc works for them. 

You will be under no obligation. 

Just give us a cal) or use 
the coupon. 


14 97 Stodt&olrnC 18. 64, Florence 
IB aifitrasbra. C 13 M Fudua 

15 5 ASsdnrr R IB K GlbralUi 


C 14 97 tetoeftbolii 
C IB 61 strartrs. 
C 15 50 Sydney 
R 2 2 53 iTetiruO 
R IS 54 fTcl AVIV 
C U BBrroftyo 
C S 9 04 (Torento 
S IB 61 [Vienna 
S 33 77 [ Warsaw 
C 14 S7fzurich 


Klenzle Data Systems, 224 Bath'BtL, Slough SLl 4DS .' 
Tel Slough 33355Telex 848535XIENZLG - 


Branches also atz Binmi 
Bristol, Bury St. Edmnn 
Manchester. Tunbridge 
Wells, Washington.. 
Aberdeen (agent) ^ w 
and Dublin. ' . _aSL” 


13 35 Rome R 18 B4 Corfu R 34 7B 

17 63 Singapore It 33 73 Dubrovnik T 15 70 


C 17 63 Oporto 
C 31 78 Rhodes 

R 19 66 Gibraltar s !l 70 SaMwrs 

S 37 81 Gnerasry C IS 35 Tangier 

5 S' 84 Innsbruck R U SB Tenerife 

C 34 74 Inverness C 16 61 IWs 

H 27-81 I.OfMan R U. 32 ViKSWia 
P 19 66 Istanbul S 28 82 Venice 

C 18. 61 S— Sonny. F— Pair. C— dood; 
S 11 82 t— temder. H— Hu 


KIENZLE 


Cbmputacs 


T- BinmfUf , k — Hllf i 


[ obvious. 


[month, breathing space yriliCh -on Friday. 


tJ 9