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No. 27,565 

Monday May 22 1978 

for CONSTRUCTION *" ' * lop 



colnbroofc!§il : 3j 



to pull 
out on 
June 13 


to keep 


_ , _ retain the st.lbn standby credit 

Israel will pull its forces out of from the International Monetary 
Southern Lebanon by June 13, Fund until January 2 next year 
the Begin Government — the date originally set for its 
announced yesterday. Mr. Ezcr termination. Treasury officials 
Weizman, Defence Minister :,re thought to have agreed new 
and Lieutenant-General Rafael terms for the credit with an IMF 
Elton. Chief of Staff, arc (o work lcam ,n London - Back 
out details or the withdrawal * BRITISH LEYLAND is press- 
with United Nations staff. ins ahead with plans for a new 
The Sons of Lebanon Organ Isa- FJ7m aluminium foundry and is 
tion. a previously-unknown holding talks with private sec- 
group, claimed responsibility for tor companies about funding the 
Saturday’s attack at Orly ‘Air- project. Birmid Qua least may 
port, Paris, iu which a French be a partner in the scheme, 
policeman and three guerrillas Back Pas* 

fJJiiiJ oV d I 5 »Si“my rS offlccS • < NFLVI ™ N h>Sb« «*e 

about to board an Ei A1 ^"wrnmenl* estimated 7 per 

for Israel Pace 3 cent 18 forecast by the Charter- 

house Group. As a result, there 
Qf-A£»|>c limit would be a £lbn increase in tax 

* 11 1,1 revenue, which would reduce the 
Mr. David Steel, the Liberal public sector borrowing require- 
Leador, warned the Prime ment from the forecast £8J5bn to 
Minister that there was no pros- nearer iThn. The group’s esti- 
pect of renewing the Lib-toih males contrast sharply with 
pact beyond the summer. But other City commentators' fears 
ihe Liberals would not withdraw that the Government would 
from the agreement before the exceed its expected borrowing 
summer recess at the end of requirement. Page 6 

July. Back Page ^ PLANS for strike action on 

Blacks arrested construction sites in protest 

rtrre8ie « against d pay 0 ff er have been 
Rhodesian police arrested S4 countered by the largest union 
blacks after violence erupted involved in the building and 
between supporters of the rival civil engineering national agree- 
nationalist movements led by the ment. The Union of Construction, 
Rev. N. Sithole and Bishop Abel Allied Trades and Technicians 
Muznrewa in Salisbury’s main has instructed members to stay 
btorfc township. Page 2 at work and ignore action 

planned by the Transport and 
Kent coast hit General Workers’ Uuiqn. Page 5 

OJ from the wrecked Greek © INVESTMENT of abijut £200m 
tanker Eleni V started coming is planned by the National Coal 
ashore at Margate, Cliftonvillc Board lor colliery developments, 
and Rroadstairs. A five-mile These include a newt “super 
slick was spotted near the Good- pit “ >n South Wales. ; ? under- 
pin Sands, drifting north about sea "it in ScoilaruL an! rx 1 . ■ y 
two miles off the Kent coast, developments to existing pi,'*. 
Thanet Council promised: It About 3,000 niiucwurkers will he 
should not bp loo difficult to employed at the new collieries, 
clear. We will have the beaches Page 4 
clean for next week-end’s Bank 

" 0,idav NGA warning 

Lotus victory , 

Mario Andretti of the U.S. went lO ETIGUlDCrS 

lo the top of the world drivers’ KrtmTI FV „ r int workers 
championship after winning the • Print jorken 

Belgian Grand I*rix in a Lotus. ^ ho ”/"*•*? '*} 
wilh hi* tean\-u\ate Rennie icport for ttork nt The Obhorver 
Peterson of Sweden, second will face 'disciplinary measures 
Ferrari* look third and fourth by their union andUw loss of 
places, with Argentina's Carlos all their Heel Strut work .. the 
Reuiemann ahead of Gilles Graphical Association s 

Villeneuve of Canada. governing council has warned 

Page o _ 

Black-out defied 0 PEOPLE are now slightly 
The Rome newspaper II more cautious about the future 
Messagero defied an official news than they were immediately 
Mack-out and published part or after the Spring Budge! . accord- 
a message claiming to be from tog lo a survey of consumer 
the Red Brigades, murderers of confidence carried out for toe 
ex-Premier Aldo Moro. It said Financial Times. But 
that Christian Democrat leaders trends point to a further rise m 
would be "neutralised with consumer spending later uus 
efficiency at the right rime." i'«*r. Page o 

n.j_i irtci • FlTtTIiER dclcriuration of 

reaai power tost crpnrate profits growth among 
A retired rear-ailmiral plans lo industrial companies during the 
make the first nian-powered flight first 10 months of last year is 
across the English Channel next shown in the latest Financial 
year in a two-seat pedal Hying Times surrey. Trading pronis ot 
machine. Admiral Nicholas Guod- ITT companies covered mcicasea 
hurt; 58, who invented flic on average by IS; per cent. i*age 
minroiMieek landing, system for 6 
aircraft carriers during the 
Second World War. starts trials 
on his Newbury Manllyer this 

Paratroopers have El,ropeans 

to stay 

gained full 

control of Kolwezi 



Reports from French and Belgian troops in Kolwezi yesterday snggested that 
they had regained control of the town from rebel forces. 

More than half the estimated against the rebellion is not clear, only small arms fire. The vital 
white population of 3,000 in the There have been widespread mining installations of the State- 
southern Zaire province of Shaba allegations of brutality on the owned Gecamines are said to be 
are expected to be back in Europe of 1116 French paratroopers, intact. 

by this morning. ^f ac ^ Foreign Legionnaires it might be many months ... , . . 

v ‘ „ wasted no tains- tn establishing before Ibev can he reactivated eith «r dead or missing. 

^* erday J* e F ^ n . ch . Defence their presence in the town. “They howler rrii?lnStifS2?5t Some Earooean, have 

Kolwezi arrived in Kinshasa 
and Brussels yesterday with 
harrowing tales of systematic 
and widespread killing by rebel 

At Brussels King Baudonln 
awaited the survivors. Many 
of the exhausted passengers, 
mostly Belgian but also French, 
Italian, Greek and British, left 
behind relatives who were 

Ministry Mid. French para- didn’t stop to ask who was a sjuiTtobe floodeTSeo^atuJn 
troopers bad wiped out the last rebel and who a bystander - said SS? 

rebel and who a bystander ” said ^ili clearly suffer from the 

Sflwe^hVoKUn^ffS^S ° f 0,6 ref " gWS - «odus of European technicians. 

where “>0Q rehpls were hnldinc ** was not ctear Kinshasa Kolwezi is the Western head- 
wnere 200 rebels were holding last nigM wtet happeoed t0 quarters of Gecamines. and 

r . . , . _ . the rebels. Some reports told of accounts for about half oE Zaire’s 

The Ministry said the French — copper production. 

BeWan ^pmratewpere 11 who 1 Copper mines out of action - Diplomats in Kinshasa remain 

jsHjs s sut- - other Dews sssr^i “s was 

lying areas for rernSniMEuro- mi « ht received from foreign 

peans. Two paratroopers were a relatively orderly withdrawal Jews ' eS JeM°v d Ala? t SL2SS 
killed and several injured. of .the main body of troops on -?^ s Azap, 

w Zritey Ibout the time of the Mobutu ^ Soko said ^erday 

Yesterday France was sti» FreS iSSSjoo Lot ^Anothe? he had direct evidence— 

playing down differences over the JSSriL Vori^ taft fa c,udin S orde « fa the rebels 

timing of the initial French para- HP * ^ be ing given in Spanish— of 

troop drop early on Friday. But Lp h Sj? ,0 trucka . and other Cuban involvement This has 

Belgian officials repeated that the veiliLie!> - been denied by the Cubans. 

French had "wider terms of Other reports suggested that Tf nnt plo _ p , 

reference." As far as Belgium some of the rebels— beUeved to XL 1 «bel<! stilf 

was concerned, the humanitarian belong to the exiled Congo * s SSjf r xjJuShiSrt® 
evacuation would be ended with- National liberation Front— had d w ^. of Kolweri n mS 

in 72 hours, or by tomorrow taken off their uniforms. That v^Tth^confinSaHon' 

morriin S- mi ^ ht . the e^nstence of Su tavS hSaef SaLS* 

Reports reaching Kinshasa fr^^h^mairi^haS Be, S ia5 ’ officials apparenUy 

from Kolwezi speak of mass kill- believe that seven French 

in»s and looting. European * had officers who were training the 

refugees said although there had considerable local support. Zaire army are held. Observers 
been many Zairean casualties, Kolwezi apparently suffered in Kinshasa last night said that 
whites had been sought out by heavy bombing by the Zaire Air French troops were pursuing 
the rebels— whether in reprisal Force and parts of it are remaining rebel troops and 
or European intervention destroyed. Other parts suffered searching for hostages. 

Some Europeans have volun- 
teered to stay Fn Kolwezi, 
where the killing of civilians 
started on Wednesday, French 
paratroopers landed in the 
town early on Friday. Belgian 
troops secured the airport on 
the same night. 

The refugees spoke of sys- 
tematic killing, rape, the muti- 
lation of bodies and, in one 
case, of 33 whites including 
women and children being 
herded into a tiny room and 
machine-gunned to death. 

Child shot 

Healey calls for restraint 
after Stage Three ends 

CBI move on 

Briefly ... — THE CBI has called for the 

Two Soviet United Nations ^ainR up of a standing com 
nfficials were arrested in New- mince to watch over the Govern 
York on spv charges and will ment’s rolleciinn of information 
appear in court on May 30. >"«*d The move follows complaints 
1 he 'Federal Bureau of Invesliya- from irudo and Industry about 
non. Page 2 i he quantity of form-filling 

needed at present to supply 
Cargo ship anchored in Falmouth 0 Qj c i ;i i statistical data. Page 5 
harbour, Cornwall, was boarded 

by police investigating a «**■ • PROPOh AU5 to cut the ... 
nerted mutiny bv the moinly ber of statistics . .... . 
Sian crew monthly UK vehicle registration 

crew. . .. figures are being considered by 

South Pole had its warmest April sacietv of Motor Manufac- 
on record, with average tempera- turers and Traders. Page 5 

ture of minus 50 u 

Premium Bund 150.000 prize goes • SHOP STEWARDS represont- 
tu^Wandsworih. London holder ing 45.000 Impenal Chemical 
If 35S4IW Industries process workers have 

or No. «KZ 35**™. rejected a pay offer on the eve 

urcu 1,1 .f .minniul nil 


mil idcd 

pn I iceman 

nf resumed national wage fa |ks 
in London. Page 5 

Two teenage Army cadeb- wore • NATIONAL SAVINGS 
drowned inn swimming raw' at creased in the five weeks to the 

j.ucta Morlich, near 

Avicmore. >tart of this month to £137.4m. 
Page 4 


Arts page J3 

Leader page 14 

UK companies S£ 

International companies ... 3< 

Foreign Exchanges 37 

alining Notebook 37 

Overseas new* “ 

World trade news * 

Horae news— general 

—labour ......... -» 

Technical PMe ? 

Management page 

survh e 


Japan's exporters 

n«> aluallon . . ... ■ ■ • ■ 

The Government s dllulrfl 
plans for lodosinai demo- ^ 


Week in the Courts 12 


Trailers 39-43 

35 World Banking I 

■HHdUm »*«« • •• 

* Olarr 

C< ouwOrd 

fixwkUI OUnr 


Leum - — 

tax — 

L«nfc*HI - - 











Men and H oners . 
ParlknMDt Diary ... 

ProAu Table „ * 

Share inlwwiailoa... 3*^ 

Sport . h: 

Today's Ewonte ** 

TV and Radio 2 

Unit Trune ® 

weather « 

14 Bate Lewd Ins Rales 


World End. Id- 

AmaL Power Eoa. 

Burrell and Co. 

Crstdcy Prodneb... 

Delta Metal 

Rt»h* Port, Cement 
Waterford Glass ... 


plans and its desire for union 
co-operation for a fourth round 
of wage restraint were firmly 
linked yesterday by Mr. Denis 
Healey, Chancellor of the 

He told 1,700 delegates from 
the Union of Post Office Workers 
at a pre-conference rally in 
Blackpool that the Government 
and the unions must find an 
answer to the problem of con- 
trolling earnings levels by the 
end of Stage Three in nine 
week's time. 

Unions warning 

be held 
he said. 

The election would 
“In the near future.” 

Trade union activists, how- 
ever, and a number of union 
general secretaries, including 
Mr. Moss Evans of the Transport 
Workers and Mr. Joe Gormley of 
the miners' union have warned 
the Government that to continue 
the present unilateral incomes 
policy into the next wage round 
will hurt Labour’s chances at 
the polls. 

Because of uncertainty sur- 
rounding the next wage policy 

“We are going to have some 
pretty fierce arguments on it 
but if we are concerned with 
keeping inflation down we ought 
lo be able to find an answer 
that works even if it is not a 
perfect one. It is very, very im- 
portant that we find an answer 
by August."' 

If the Government and tbe 
unions wanted to keep inflation 
down, they should decide how 
much wage costs could rise next 
year and how they could make 
sure that under collective bar- 
gaining there was enough flexi 
bQity .to deal with the wage 
anomalies that had developed in 
the last three years of pay policy 

They must ensure that the pub- 
lic sector got a fair deal, and in 
particular those areas of it where 
it was difficult to make product! 
vity agreements. 

Reporters who visited 
Kolwezi on Saturday were 
taken to the scene. Corpses lay 
In a tangled heap. A child of 
about three had been, shot in 
tbe head. 

Most of tbe refugees blamed 
the rebels for tbe atrocities 
but there were persistent 
reports from Kolwezi that 
some of the killing had been 
carried opt by soldiers of the 
Zaire army. These could not be 

Reuter reported from the 
nearby town of Kamina that 
Belgian officers said unruly 
Freneh paratroops killed six 
fleeing whites in Kolwezi. The 
officers, one a paratrooper and 
the other an air force man, 
said the dead were five Rhodes- 
ians and one Belgian. 

One of two British plumbers 
who survived the massacre of 
Europeans said he bad stood 
hiding in the hallway of a 
house while rebel troops 
dragged people out 

Mr. Mike Brian, who was 
working with a Belgian com- 
pany said: “ There were 
women and children screaming. 
The rebels threw two bombs in 
through the window. There 
were lots or screams and 
shouts and pleas for mercy. 
Then there were single shots 
from a rifle.” The bodies of 33 
Europeans and Zaireans were 
later found In the house. 

Hr. Brian said he and 
another _ Englishman were 
taken prisoner by the rebels 
trad kept In a former army 

EEC backs 
British call 
on reflation 


BRUSSELS. May 21. 

TFTE BRITISH Government's No effort is made, however, to 
efforts to persuade iis EEC part- specify the level of growth for 
ners to agree on a programme of which’ each country should aim. 
concerted reflationazy measures, or the kind of policies needed lo 
to which countries with strong produce it. This would be the 
payments positions would make subject of delicate negotiation 
the biggest contributions, have during the coming weeks. 

EiSjSn ttmiSfSlnf ° f ^ ™ e commission hopes Umt 
In a paper to be discussed by !? e Finance Ministers will accept 
EEC Finance Ministers in 2* P a !? er » a bas * s for Prepara- 
Brussels tomorrow. M. FnracDiS- £ or J , the , nest meeting of 

Xavier Orton, Commissioner for ||EC heads of government m 
Economic Affairs, argues that by ® reoien on •faty 6 and <. 
acting together, the Nine could The EEC expects to dcchlc 
achieve perceptibly faster growth then on the main elements of the 
with less Budgetary a nd pay- contribution it will make to the 
meats strains than if each broad package of cconomic 
country acted in isolation. measures which, it is hoped, will 

The paper, drawn up in close be endorsed at the seven-nation 
consultation with each of the Western summit in Bonn two 
Ministers, suggests that Britain wee ks later 
could take some modest addr , .. „ , 

tional measures to stimulate its 

economy towards the end of this ® on “- west German Govern- 
year if a joint programme were 1I,en ^ 15 preparing to go for a 
agreed. more expansionary budget next 

But there would be no mom for ^ ear - on . Sjounds that the 
further reflation in tbe UK this economy is likely to require an 
year without such an agreement, additional boost. 

Tbe Commission forecasts that Dr. Annin Gruenewald. 
If present policies remain un- Government spokesman, said in 
changed, the EEC’s average an interview this weekend that 
growth rate will be between 3 tbe Cabinet would discuss the 
and 3.5 per cent, in the middle of 3979 Budget on June 7 and 21 on 
next year. the basis oP a “ scrupulous 

This is far short of the 4.5 per analysis of economic conditions.'' 

SS!«I a n r t?yTL b ^pr adS K 0f is®* He noted that lfae Govern- 
S’T'fvlJSLSF S meT,t ’ s medium-term finance 

Copenhagen early last p i ann j n g provided for 6 per cent 

omn ' budgetary growth in 3979— but 

H jr this figure bad been set well 

Manoeuvre before the exact course of the 

economy could be assessed. 

The paper attempts only a It could now be that greater 
broad assessment of the relative expansion would be needed, 
contribution which each country together with an emphasis on 
could make to a co-ordinated re- investment in favour of future 
flation programme, listing them growth areas, 
in descending order according to Dr. Gruenewald's remarks all 
their “room for manoeuvre.” concerned 1979, but ir is clear 
Not surprisingly, the list is that in its analysis the Govern- 
headed by West Germany, fol- ment is bound to consider what 
towed by the Benelux countries, basis there may be for an earlier 
with Italy at the bottom. economic boost. 

Banks to study disclosure 


BRITArrrs big clearing banks These have always been a 
are planning to set up a top level closely guarded secret, although 
coramitiee to review their exist- j t ls M jd tfi at their level is 
ing accounting and disclosure usual]y SBt at j. H t . ent of 

policies. The decision comes only . . 

a month after the Price Com- 10, “ s al ri& *- . . 

mission recommended that the it now seems that after seveial 
clearers should make full dis- "L 0 " 1 * discussion the bankers 

closure of their profits and E 1 .? u “i a 1 ^ y ''5S tl r 
reserves believe gets them round the 

It also coincides with the jgKSS, I"** * hl ,? e . t d rtJi 
withdrawal by the clearing banks ffm? rim! * Jw 

of their objections and demands same . Vme nothin S 

for special-case treatment under This ‘‘solution" appears to 
a proposed accounting standard have the informal approval of the 
on taxation. Tbe banks originally clearers’ auditors. Consequently, 
thought application of the the banks will not receive quaii- 
standard would enable outsiders A ed audit reports for failure lo 
. to work out the amount of their comply with an accounting 
barra cks fo r two days until the [ general provisions for bad and standard. 

■r,- ~ -- doubtful debts. Lex, Back Page 

Continued on Back Page 

Inflation fall 

Mr. Denis Healey: 

We must find honest answers 

Mr. Healey told the union that 
“a superb job" had been made 
of keeping increases in wage 
costs down in the last 12 months. 
As a result of that and the rise 
in tbe pound, inflation had fal 

and the prospect of an election tion, but -we can only win it if len to well over half of what it 
this year, there is a movement those men and women’ through- was at the beginning of the pay 
within the UPW to postpone de- out the country, and particularly round last August 
cisions on pay until later in the those in the trade union move- people must also ** buy 
year. The conference will this ment who showed common sense British, sell British and make 
week cofisfifer an emergency and patriotism through the most British best " this year to 
motion calling for a special con- difficult times can show the re duce unemployment and keep 
ference before their next settle- same common sense and patriot- inflation down. If the f2,000m 
ment on January 1, 1979. tsni wdeu things are getting a now reaching wage packets after 

Mr. Healey said that The forth- Httie better. Budget went on British 

coming election was going to be He added: “ We must come goods, it would create more jobs, 
very important indeed." In an out with an answer which is If It went on foreign goods all 

appeal for wage moderation be- honest, which makes sense and it would do would be to create 
fore the election he said: “ I which will work over the next jobs i 

believe that we can win this elec- 12 months. 

in Japan, Germany, France 
and Italy. 

Vauxhall plans to produce 
British version of Rekord 


VAUXHALL MOTORS, the UK industry, which sees them as a Opel ha? embarked on a large 
subsidiary of General Motors, is significant step forward in investment programme designed 
planning to invest in production General Motors' drive to expand to reduce bottlenecks. Vauxhall, 

facilities to build a British ver- its sales in Europe. which also owns the Bedford 

Sion of the Opel Rekord, the Th e Detroit-based etoud has commercial, business, is gradu- 
ate executive saloon introduced made it cIear ^ Tec ^ x £ ^ ally increasing production to use 
last year by its sister company that it as seeking a great deal more Jt s , capacity . Last year 

in Germany. ££ ^^ftsidftbe uS * only, about 235,000 cars 

It Is expected that the new ear where anti-trust regulations w* commercial vehicles against 
will be 'produced at Vaush all’s have ruled out most possibilities a potential of about 400,000 
Ellesmere Port plant, which Is for expansion. units. 

making part of the Chevette * Vauxhall s growth was dogged 

range and the Viva, which is Facilities by labour trouble last year, 

nearing the end of its long life. which de^fa™ tbe company’s 

The company hopes to start Because of this new emphasis hopes of making a profit. But It 

work on changing the production on overseas activities General is proceeds with a gradual 
tines in the three-week summer Motors is expected to concen- expansion tis workforce. 

break due at the end of July', lrale attention on 'Western which has grown by about 4,500 
with the intention of launching Europe. in the past 16 months to 33,000. 

car late this year. The sty!- Among long-term possibilities It bus introduced double-shift 

mg of tbe new model is likely lo examined by the company are working at Ellesmere Port and 

bo different from that of the plans to introduce a Mini-type the Dunstable truck plant, and 

Opel, version, but they will share car. and to develop production will start a second shift at the 

m any co mp on en ts. facilities in the region. It is main Luron plant today. 

Although Vauxhall has not pushing ahead with the develop- . , , 

confirmed these plans, they are ment of its present factories in Vehicle filselose too 

being widely discussed, in the the meantime. nrach Phge 5 

When you choose a Hy’ster lift truckryou choose a truck 
builtto meet exacting standards of performance and durability 
in the most demanding materials handling applications. 

That's because every truck, every component in that truck, 
is subjected to rigorous quality assurance checks at every ' 
stage of production. Nothing is left to chance. 

Quality is the manufacturing standard throughout Hyster 
plants worldwide. The most modem manufacturing technology 
and the necessary production flexibility ensure that 
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For a profitable difference to your handling operation, 
choose the truck built to-quality standards, Choose Hyster 

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Sold and serviced in Britain by : 



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Maidenhead. Tel ; Littlewick Green21 5f 
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In Ireland bvt "* 


Financial Times Monday May 22 19rg 


Zaire copper mines out 
of action ‘for weeks’ 


sticks to 
its guns 

e Queen begins W. German visit today 


BRITAIN'S Queen Elizabeth 
arrive here tomorrow for her 
j spconi .Slate visit to West 
Germa y — an event likely to 
cmph: ise bow far relations 
betww i the two countries 
have eveloped on a more 
norma and friendly footing. 

The Queen's first visit here 
in I96( was an occasion not 
enthusiasm hut 

dis- one of the three where Geca- that France's" military Interven-i was . ieen P 5 . a tl ®£ 
mines has mines and the other tion to evacuate Europeans reconcUauon between tne 

I turn oefal cs after the war. 

By Our Own Correspondent 
NYBORG. Denmark. May 21. 

exten- Ft is nainted nut that the mines two are still producing normally, trapped by fighting in Zaires two after the war. 

une of in thl KoSi iS are Jfthe At ** szme time * e Zaire Shaba Province was of limited' „1L h * 

stoup Government has a joint venture duration and would soon be- P™seniJpe fia^ are flyinj.. 

Ihe pa* 

rs are full of details 
Royal Family, and 

THE flight of foreign technicians bring the mines back to produc- But the closure of the mines 

from Shaba suggests that the tion when stability returns to the in the Kolwezi area does not 

copper and cobalt mines in the region is not known. There has mean that Zaire will have no THE French Foreign Minister.! _ 

Kolwezi region will be closed been some damage done to pro- copper to push on to the inter- M. Louis de Guiringaud. assured ! 

for at least several weeks. The cessing plants but reports of the national market. The area is his EEC colleagues this weekend ; Jusf onpnbiic 

fighting of the last few days has mines being flooded are dis- one of the three where Geca- that France’s rail it" " “ 1 n 

not only checked production but counted. mines has mines and the other tion to evacuate 

inevitably retarded the ext 
si ve development programme _ 

Gecamines, the state group open pit'variety— huge* faolesln Government has a joint ----- - — - 

which owns the mines. the around rather than a maze wUx a consortium, drawn to a close. i 

Neither the mines nor the 0 f tunnels under th'- surface In call ® d Codemiza, and output “ ut he is understood to have; 

processing facilities associated onlv one mine is there any under- from there has not been no concessions w otner, 

wth them can work without ground development and it is affected. J h,n \u d, *.?“ SC *' 

foreign technicians and, accord- here that flooding could have Although copper prices have whfn? f-pin 1 - 

mg to Belgian industry sources, occurred. strpnathpnprf sin«i th* first wnjc “ the operation ha* r.een . 

production ■ stopped some time ^ ^he ShabJ Shtine^nd a? “ nd 'f ct 5 d - . Nor dld h ? 3e . ek 10 ■ 

last week when personal safety Electricity supplies were cut aroilXK i £790 » tonne is £100 016 i™ press ion inat u was; 

became the main objective of last week thus depriving the more than a t the bSinimg o? % * east P ml >' » n « ftded . dS . a ‘ 

the technicians. Pumps at this development of £° b r * are there a3 enouS difiplay of solidarity witn me, 

At this stage, information is ihe necessary fuel to keep going. stoc j£ Available worldwide fhr ot Pres: ’i 

sketchy but if aay foreign tech- Kolwezi is the centre of a the impact of the events in “ * * ese A \ 

mcians remain at the mines, then major expansion plan for Geca- Kolwezi on the copper market cco rq r 1 ^ - t0 omcuis auenu-i 
they will be able to do little mines. The plan runs to the end to be fairly muted. a private weekend mee.iris,, _ iji* 

more than “preserve the tools” of the decade and although it The situation la different for 5v e * n ‘ s !, e j 3 he J*;i flPSllillUP 

as one Belgian mining man put has been falling behind schedule Cobalt where an existing inter- ^kL de s galll, r DS Uvft^UUV 

iL During previous disturbances for some time, because of diffi- national shortage is being Fren , cb A 6 ™"! 

in the area, a few foreign tech- eulties in obtaining supplies, it exacerbated to the extent that gjgj; ^ Nine ££* 

television (s planning exten- 
sive daily coverage. Further- 
more, the West German auth- 
orities have agreed to relax 
security somewhat so that the 
Queen will be able to M meet 
the crowds” during her stop- 

However, even though politi- 
cal relations have become 
normal this does not, of 
course role out differences of 
view. The British Foreign 
Secretary, Dr. David Owen, 
who Is accompanying the 
Queen and the Duke of Edin- 
burgh, will no doubt be dis- 
cussing some of those dlf- 

with Ws opposite 
Herr llans-Uieirlch 
o\rr the next few 


da vs. . . 

The Queen's five-day visit 
begins tomorrow with a 
luncheon with President 
Walter S check followed by 
s visit lo the Bonn Town Hall 
and a state dinner in Ihe 
evening at Schloss Bruehi near 

Bonn. . ... 

One of the high-pomts will 
be a visit to West Berlin on 
Wednesday, during which the 
Queen will take the salnte at 
her birthday parade there. 
Chancellor Helmut Schmidt 

BONN. May 21. 

will accompany the Queen •> 
her Berlin visit. a fact *hU 
is understood lo bate aiuuiM 
the Russian* In i!i>h of "tfc, 
city's special four-pgw 
status. '* 

Oilier key slaps will be j. 
Mainz, capital of the stain at 
Rhineland Palatinate, to Kfei 
capital of (he mirthommog 
state of Schleswig Holsidn 
and to the city stale 
Bremen. The Duke will ^ 
making a separate visit io 
(lurching, near Munich, slto ef • 
construction of the Tornado ] 
combat aircraft, which has 
Rolls-Royce engines. 

CitV fails 
to meet 

mcians have always remained bad been intended to raise Geca- prices on the free market have 5E2S? “5?*" IT -\ l ” e v ;£“ 
behind. mines’ annual fn h. on »srply underlined hy the. 

YORK, May 21. 

- « - - *■ 8S& ££?« swwa £&££• *- ™ 

E. Germany denies backing 
insurgent forces in Shaba 


was detained in Brussels' by; orderly house to the 

urgent consultations oo the j U.S. Congrc.*f passed 00 Satur- 
e vacua tion. But there were [day with none of the citi'S 
strong hints that M. Simonet -*■ as 1 newest ooiecck-es achieved. 

□ot l«en to meet ^I. de Guirin-i It is now 6ot clear whether 
gaud face to face while the {Senator Willia^i Proxmire, chair- 
Belgian goveromenr. remained ( man of the Sez&te Banking Com- 
deeply angered h> France’s mittee, will ^pld hearings on 
failure to consult it before send- 'Wednesday into the Carter 
ing paratroopers to Zaire. The] Administration') plan to give 

New York Sfibn of 15-year loan 

If Senator Proxmire does delay 
j tbe hearings it may be very difli- 

British government, represented 
at the meeting by Dr. David 
Owen, the Foreign Secretary, is 

nfcnm? - - , . _ , . . also believed to harbour reser- _ __ 

DEbPiTt, an increasing role in has taken over military opera- The East Germans have vations about the French action 1 cult for Cohgre'-srio approve the 

Africa the East German Foreign turns for the Soviets, first in profited from both pre-war and particularly about the- Administration's ^plan bv June 

Sumstry today described a report Angola and now in Ethiopia, African scholarship in Germany wisdom of appearing lo rally 130. This is when the existing 
til a British newspaper that East East Germany is providing both and the relatively untainted to the support of the Mobutu 

Benin was providing military ideological and material support German record in much of regime, 

backing to Zairean rebels as a for African revolutionary and Africa as a non-colonial power 

guerrilla movement s. The bulk In addition the East Germans, 

Iran threatens halt 
to economic aid if 
Bhutto is executed 

Promise of 
return to 
elected rule 
for Peru 


TEHRAN. May 21. 

bare-faced tie. 

The Observer newspaper said 
the East Germans were master- 
minding the rebellion in Shaba, 
apparently to stop tests there by 
a West German rocket company 
to launch spy satellites. 

East Germany had been chosen 
by the Warsaw Pact powers to 
destabilise the Zaire Government 
of President Mobutu Sese Seko 
two years ago. the report said. 

Zaire broke off diplomatic rela- 
tions with East Germahy in May- 
last year, accusing it of involve- 
ment in an earlier attack on 

Leslie Colitt reports: East Ger- 
many and the People's Republic 
of the Congo, which borders on 
Angola and Zaire, have pledged 
to increase co-operation in the 
** anti-imperialist front " and 
between “ our countries and our 

CUBA HAS said that it had no links with rebel forces fighting 
in Shaba. Cuba had not trained the rebels, had not given them 
equipment and had taken no part in their actions, a Government 
announcement ai the weekend said. 

Allegations by Zaire of Caban involvement in the Shaba 
fighting were false and there were no Cuban troops or specialists 
in Zaire, it added. 

President Mobutu Sese Seko has recalled Zaire’s ambassadors 
to Algeria and Libya. The two countries, along with Cuba and 
the Soviet Union, have been accused by Kinshasa of backing the 

Dr. David Owen, the British Foreign Secretary, said yesterday 
that there was no very firm evidence of Cuban or East German 
support for the Angolan rebels. Bat he added: “ There are some 
stories of involvement which have not been confirmed, but there 
are a large number of Cabans in Angola and it would not be at 
all surprising to find that they had some Involvement in the 
backup and support 1 * 

French troops 
in Chad war 

By Robert Mauthner 

PARIS. May 21. 
LQUM of Chad confirmed here 
to-day that French troops are 

federal aid programme expires, 
and with nothing; to replace it 
New York City couid slide into 
bankruptcy by laio summer. 

The passage of Saturday's 
deadline has done nothing for the 
credibility of New. York State 
Governor Hugh Carey and the 
city's Mayor, Mr. Edward Koch. 
The two leaders told Mr. Michael 
Blumenthal, the U.S. Treasury 
Secretary. 10 days ago that the 
financial .-package would be 
assembled by May 20. 

Essentially they had to achieve 
five goals: an agreement with 
taking part in the fighting against jthe municipal unions on a new 
Libyan-backed rebels in nor- j two-year pay and conditions 

them Chad and were no longer 
there just in an advisory cap- 

On his arrival here for a 21- 
nation Franco-African summit 
conference, which opens to- 
morrow, General Malloum said 
that the situation in his country 
was still very worrying and that 

people's armies." -Hiis outcome of the help from East Germany, defeated in war and politically France ” was ' the* ‘only Tountry- 

of last weeks visit to Congo according to East European isolated for years, have sought which had so far .-responded to 

Brazzaville by East Germany s sources in East Berlin, is non- long and hard for friends and bis call for military aid. 

Defence Minister, General Heinz military such as educational pro- found them among the down- Chad government forces, 

Hoffmamn 15 one illustration of grammes for gifted young trodden of Africa. backed by some 1 700 French 

East Germany s new role in Africans, technical assistance and Tens of thousands of Africans troops and military advisers and 
A 3J“' „ „ , medical aid. More recently how- have learned reading and skills ten Jaguar ground support air- 

The EUst Germans have ever East Germany has also from East German textbooks and craft, are currently involved in 

increasingly been assigned the started up a military assistance long ago East Germany began heavy fightine with rebels of the 

SlL» b Li!f.? aC0 'U f f^ Ut iS S Pl°.^ ara “ e that stresses the inviting representatives of black Frolinot National Liberation,^., «uc ». 

Soviet policy m Africa while the training of officers for a number African liberation movements for Front, who have made substantia! 1 trv to reach a .settlement by 

Russians themselves maintain a of African countries including special studies and health cures territorial gains over the past' Wednesday, the absolute dead- 

niuch lower profile. While Cuba Congo Brazzaville. in East Germany. few weeks. . line for Senator Proxmire 

contract; legislation to extend 
the life of tbe emergency watch- 
dog Financial Control Board; 
legislation to extend the borrow- 
ing authority of ihe Municipal 
Assistance Corporation (MAC); 
undertakings from city banks 
and insurance companies 10 

ried out. This was disclosed by Bhutto's lawyer said yesterday 
official sources immediately tie- that the former Prime Minister 
fore Pakistan's Supreme Court was being kept wi*h inadequate 
began hearing Mr. Bhutto’s privacy in a cell woerc he could 
appeal, yesterday. not control the light or fan and 

Diplomatic sources here con- could only exercise m ihe cor- 
firm that considerable pressure ridor. Mr. Bhutto was refusing 
is being put on Pakistan's miii- all food except r ea. Mater, soft 
tary ruler. General Zia iti-Haq, drink, and cigars- 
from Iran as well as from Tbe authorities have denied 

Western countries. Iran has the allegation of bad eruditions 
publicly appealed for clemency but the Chief Justu-e, ordered 
for Mr. Bhutto, and the Govern- that steps be taken to see that 
merit has acknowledgd that the complaints did not continue, 
there have also been “amicable Mr. Bhutto is being held in 
contacts " between the two Rawalpindi district jail while 
countries over his case. hi& appeal against death sentence 

A senior member of Pakistan’s anc conviction in a ease of poli- 
niling military council. Air tical murder is heard in the. _ 

Marshal Zulfigar Ali Khan.’ flew Supreme Court her.?. The hear- 1 township, our Salisbury rom- 
to Tehran today on an un- ing, which opened yesterday, is spondont reports. The violence »*ii 
scheduled visit and held talks expected to go on for mr-re than Saturday night, came atter a rally 
with Dr. Jamshid Amouzegar. six weeks. attended by 10.OUO people. They 

Iran's Prime Minister. The sub- Iqbal Mina reports from ^ere addressed b> the Lev 

ject of the discussions has not Karachi: Tbe World Bank aid to I v^h- h .o Jj?’ d 

been disclosed, but they arc Pakistan consortium will meet ln,i* 

thought to have centred on the Paris from May 31 to Jum 2 toj 

threat to cut off aid. consider Pakistan s request fori.j c ei , p y j id n 3 n«s 

A request for further assist- foreign assistance for 197S-70. %vent on thc r am biting n ( . 
ance was made dunng a visit to Pakistan has already circulated olhc , r a ,\ d 5lnmnL vV v 

Tehran 10 days ago, of Mr. Agba a document giving details of its 
Shahi, Pakistan’s senior foreign requirements, 
affairs official, according to dip- The annual plan co-ordination 
Inmatic sources. They say the committee yesterday undertook 
Shah is holding up the request an exhaustive review of the 
pending the outcome of the country's economy and its per- 
Bhutto case. formance particularly during 

Observers believe the Shah Is 1977-78. The meeting evaluated 
concerned about the stability of the POMtiou of domestic and 
Iran's eastern neighbour. The forcien resources which might 

• Prcxidenl Kr.invisrn .'Ionite 
j Bermudez *«f Peru ha.*. nr<iauv>.j 
jin h broadiM** U' ihe uxtwm llu: 

IRAN has threatened to cut off Rawalpindi: The Chiel Justice I ihe military mil hand over m 
economic aid to Pakistan, worth of Pakistan. Mr. Justice Anwar; an elected government. Keeler 
between 8200m and S3QGm a al-Haq, has ordered that the cun- j reports from Limn He « a <, 
year, if tbe death sentence on diuons of Mr. Bbuttn. should be ; speaking a 1V« h- *»' ^ mi iw 
Mr. Zulfiqar Ali Bhutto, the improved after ^aring that ho u^ 

former Prime Minister, is car- was on a hunger strike S i: Vt» 

died. The President lunted that 
general and presidential elections 
could take place lie fore Ihe due \ 
date in 19S0. 

Under the emergency, political 
campaigning on radio and Hu- 
vision Tor Const 11 uent Assembly 
elections on June IS', has been 

Editorial comment. Page 14 

Police hold 84 after 
Salisbury rampage 

Rhodesian police haic made W 
arrests after violence between 
rival black nationalist factions in 
Highfield, Salisbury's main black 

participate in a 84 . 5 bn. lone-term I Afghan coup has heightened be available to finance next 

financing programme; and pay 
meat of 9683m. -by five New York 
City pension systems into Ihe 
city's Treasury in leiurn for city 

The legislative procedures 
covering the Financial Control 
Board and MAC are being sorted 
out in the State capital and the 
pay negotiators are expected In 

fears here about the possibility year's development programme, 
of separatist movements among In particular, the meeting con- 
the Pathan and Baluch people of ‘sidered sectors of the economy 
Pakistan. The Shah probably which could produce good results 
feels that the execution of Mr. in the short l» medium term to 
Bhutto would aggravate Pakis- meet the requirements for essen 
tan's internal tensions. lial consumer items and to 

Simon Henderson reports from enhance exports. 


“Overall I remain confident 
about the prospect 
in 1978.” 

Lord Caldecote, Chairman 

Other points from his statement at the A.G.M. 

“Nearly 60 % of our U.K. trading profits are now 
derived from finished engineering products and 

I want to emphasize once again the vital 
importance of improving rewards for skill 
and experience. 

If skilled people are properly rewarded then the 
numbers that are needed will be available, and 
they will help to produce the extra national 
wealth and job opportunities from which we shall 
all benefit. Failure to reward skill and experience 
through better differentials in take home pay will 
prevent our taking advantage of an expanding 
economy to create more employment. Those 
benefiting most from expansion will be the 
hundreds of thousands of unskilled people now 
out of work, most of all the young ones who have 
just left school. 

I believe the balance of advantage has now 
swung in favour of a greater degree of 
flexibility in pay policy after August 1st this 
year, even at the risk of making the reasonable 
settlement of pay claims more difficult.” 

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Domestic electrical 
accessories by Nettie 

De/mar leisure marine fittings 

Winn butterfly valves 
for marine and other applications 

Plumbing tube fittings 
by Delta Capillary Products 

Copies of the full report end accounts and Lord Caidecote's statement to 
Shareholders at the Annual Genera/ Meeting are available from the Secretary, 
The Delta Meta / Company Limited, 1 Kingsway, London, WC2B GXF. 



A major international group manufacturing 
building products, electrical equipment 
_ engineering components and non-ferrous metals. 

Britain calls for closer 
EEC links with Turkey 


NYBORG, Denmark, May 21. 

BRITAIN has called on its EEC EEC purchases of Turkish agri- 
partners to reinforce their joint cultural exports and by 
political and economic links with improving the treatment afforded 
Turkey to prevent a further Turkey under its association 
deterioration in the already agreement with the Community, 
strained relations with Ankara But although Dr. Owen's desire 
after Greece joins the Com- not to alienate Ankara further 
munity. is widely shared by his col- 

Dr. David Owen, the Foreign leagues, they were unable to 
Secretary, is understood to have agree on any specific measures, 
urged bis colleagues at a private Some delegations questioned 
meeting of EEC Foreign whether closer political assacia- 
Ministers here this weekend to tion with Turkey was practicable 
consider involving the Turks and suggested that the EEC 
more closely with the EEC’s might be forced instead to opt 
efforts to co-ordinate foreign out of any direct involvement in 
policy, occe Greece has been bilateral Greek-Turkish relations, 
admitted. Concern has been focused in 

He is said to favour inviting the EEC both by Turkey’s bitter- 
Turkey to attend "political ness at the refusal of the U.S. 
co-operation " sessions, at which Congress to lift the American 
the Nine discuss issues outside embargo on arms deliveries to 
the framework of the Rome Ankara and by the forthcoming 
Treaty, whenever these touch on visit \o Brussels of Mr. BuJent 
blatters oF direct interest t 0 Ecevit, the Turkish Prime Minis- 
Ankara, such as Cyprus and the ter. 

dispute with Greece over the Mr. Ecevit is expected to 
Aegean. present a number of demands lor 

He called on i lus colleagues to a better deal when he meets Mr. 
study ways of helping Turkey to Roy Jenkins, President of the 
try to correct its massive trade European Commission, on Thurs- 
deEcit, possibly by stepping up day. 

stoninu *v\, 
vehicles ami a house. All ihf 
major nationalist groups denied 

Rhodesia's guerrilla war Ii;in 
claimed 12 more lives Koul «’r 
reports. Defence headquarters- in 
Salisbury said security fore* 1 * 
have killed five guerrilla?.' and two 
guerrilla recruits- Guerrilla', 
have killed three vi Hauers and a 
white farmer has died from 
wounds received in an ambush i 
last week. [ 

Tokyo’s new airport ' 
in operation 

Tokyo’s new airport became 
operational despite last-ditch • 
efforts by left-wine radicals who ! 
have backed farmers m a I 
struggle to stop it bein'; built. 
Reuter reports. The first six 
Freight and passenger fliuhi.- 
landed safely as clouds of hlack 
smoke drifted across the runway, i 
from burning car tyres sei alislii * 
by left-wingers to haJt the open- 3 
ing yesterday. j 

Soviet ‘spies' held J 

Two Soviet UN officials arrested *■. 
on spy charges are to appear in e 
court on May 30 for a preliminary a 
hearing, the FBI said yesterday. B 
according to a Reuter report from 1 
New York. The two men, Mr. ’ 
Rudolf Petrovich Chernyayev. 
aged 43, and Mr. Yaldik Alek- 
sandrovich Enger, aged 39. face 
life - imprisonment if convicted. 
The FBI said a Soviet diplomat. 
Mr. Vladimir Petrovich Zinyakln. 
aged 39. was third secretary in The 
Soviet mission to the UN. was 
also involved but was not arrested 
because of diplomatic immunity. 
According to the FBI, the three 
men paid 816,000 to obtain in- 
formation about U.S. anti-sub- 
marine equipment. 

Guzman holds lead 

Mr. Antonio Guzman, the Opposi- 
sition candidate, who has already 
declared himself President-elect 
of the Dominican Republic, main- 
tained his iead yesterday as more 
official results were announced. 
Reuter reports from Santo 

Seo'nd id'., umiib pa i.l .,» Nrw Ydffc. s .'- 
Mn *>«»«. Tivis, putMuhc, cMCft&un- 

J-' 5 - fut’vriwiiip vnuu 

Jlr IrcUhn s.««iin , 4ir man, pet a no not 


power engirieerilig 




Highest ever Profits— 
Record Dividend 

Chairman, Astley Whtol. says -The ovaral. station can be v,ewe d with confidence. 


Group companies in the U.K. 
A.P.E.-AIlen Ltd 
■A-P-E- —Allen Gears Ltd 
A.P.E. — Beiliss Ltd 
A.P.E.- Cross ley Ltd 
Valtek Engineering Ltd 

Companies overseas in 
Australia, Canada 
Dubai, India 
New Zealand 
South Africa 

^ T _ M c, u 5 Colmoro flow, Birmingham B 



Financial Times Monday May 22 1978 


Huge majority expected 
for Sadat’s six principles 


tn'takp i£2?, nne * *»«“ “P «■ their leadership and to publish 

ref erf n«i. laKe .. p frt m a ferendum, Parliament will draw newspapers, 

prove a uinihw 7 noin^in^hS Y* legislation that could be used Voters received a single slip 
democratic nM<2^? t inSiJiS i° f. lleCCe many , of Presi ‘ which asked whether 

by President ShS’ *22 ? mDre V0CaI mt,cs * agreed with the six prin- 

wcre asked tii vnu «n , 2 r ln a statement last night the ciples presented by the President 

six principleS enunciated hv m/ Ba / A ? ocl “ tto n described the during his speech and which 

Sadat in a nS!h h«i S»S« referendum as “unconstitutional, were designed to protect “social 

‘n which be ancrifar aocuSd IS me s aI „ and a setback t0 d ” no ' pe « e ¥* d “domestic harmony.” 
critics r.r mnimrinJ .? /”* cracy.” The conservative New The six principles would bai_ 

of doubt and nimmir 3 cam PaiSn Wafd, the most recently formed from political activity, or from 
if ou • . , of the Four legal political par- holding senior official positions 

'pdei> expected, the ties, said it regretted that the those whose ideology is incom- 

b wi, . L announced to have referendum had been called be- Patible with the teachings of 

favnn,- 9 .,* cen t'Plus vote in cause it aimed lo impose restric- religion, and those who took part 
P°h tM ?ans and tions on the freedom to form -par- in corrupting public life before 
r people who fall within the ties, and of parties to choose the 1952 revolution and between 

then and the 1971 "corrective” 

CAIRO. May 21. 

Rise in Saudi oil exports 


SAUDI ARABIAN exports of The 

JEDDAH, May 21 


Anyone writing 

or otherwise holding positions in 
the media would have to uphold 
the principles of democratic 
. x .. socialism, national unity and 

— ---- * — April figures contradict social peace 

erode oil ] use by an average of an earlier report of April ex- The P main targets are the 

compa laSt "iS?* ports of £6 ’ 2m - barrcl8 ^y- leadership of t^wifd^Ldipg 
£“£“3 * Tht earUer report, quoting figures in the left-wing Unionist 
Minislrv * ssu «d by th^ Saudi financial sources in Jeddah pre- Progressive Party, and “Corn- 

Mineral R,°nnrr« U 1 and dlcted 3 steep faiJ jn Saudi re ’ who hold influential 

“ n'. sources. venue and hence foreign reserves newspaper posts, 

exports which account for all oh the basis of the drop in pro- President Sadat is to hold a 
• out b per cent, of Saudi produc- duction. Exports are still, how- news conference on Tuesday 
uon stood at 7.91m. barrels a ever, well below the 1977 aver- when the final results of the 
nay against b.Slm. in March. age of over 9m. ban-els a day. referendum are known. 

Orly attack was for ‘vengeance’ 


BEIRUT, May 21. 

A GROUP calling itself tile Sons the first time that new names to go through the security check, 
or Lebanon Organisation has for organisations have been used Israeli security agents were re- 
claimed responsibility for the in claiming credit for hijackings ported to have assisted the 
attack at Orly Airport, Paris, or terrorist activity abroad. Most French police during the battle 
yesterday m which one French of the actions were carried out 

po 1 iceman and three guerrillas by members of the foreign opera- Mr. Mordechai Gazit, Israeli 
died. Three policemen and three tions branch of the Popular Ambassador to France was at 
airlmc passengers, all French. Front for the Liberation of the airport to meet Mr Israel 
were wounded. Palestine (PFLP1. Katz. 5s wSSSr of LabSir! 

A statement signed by the The Orly assault had all the but neither he nor the Minister 
SToup and distributed in Beirut makings of a PFLP foreign were present in the customs hall 
Iasi night said the target of the operation and observers doubt when the shooting took place, 
attack was a group of Israeli that a new group could possess Mr Shmuel Tamir Israel's 
army officers who were about to the means to mastermind an Minister of Justice, later tele- 
huard an El A1 flight bound Tor attack on this scale, phoned the French Minister of 

Israel. The group wanted to take Robert Mauthner reports from Transport to express his Gov- 
venycance for the Israeli inva- Paris: The three terrorists, who ernment's appreciation and 
sion of southern Lebanon two carried several passports includ- thanks for the way in which the 
months ago. It said. ing Tunisian and Lebanese docu- French police had foiled the ter- 

The statement did not give merits. - and were all in their rorists. “Only by co-operation 
the identity of the three guer- twenties had flown io from Tunis between free countries will it be 
rilla* who staged the attack. earlier yesterday, according to possible to fight barbaric terror- 
This is the first time the Sons the French police. ism.” he said, 

of Lebanon Organisation has They were seen taking out Orly Airport has been the 
been heard from. Observers automatic weapons from tbeir scene of three attacks against 
rerail, however, that this is not hand luggage as they were about El A1 since October 1972. 


Atlantic grain trade dominates 


THE - ATLANTIC grain trade number of cargoes placed on Grain markets on the Atlantic 
dominated shipping markets last charter for discharge in the U.S. continued very firm, with U.S. 
week, with new high levels of The Caribbean loading area Gulf tt*, Holland rate levels 
charlcrinc. Elsewhere and in was active early in the week but reaching ‘the highest for many 
oi her sectors, major develop- rales have now eased and a years. Galbraith said the move- 
ments were hard to find, despite number of vessels are seeking ment shows all the signs of con- 
a moderate amount of business work, E. A. Gibson Shipbrokers tinuing to the middle of June, 
m I anker trades. said at the weekend. Denholm ‘ Coates and Co. 

In tankers, inquiries remained In dry cargo markets. there reported that charterers have 
at a low ebb in the Middle East was more buoyancy, despite the been forced to timecharter 
with shipbrokers again worried coil t menial holiday on Monday, vessels at levels up to 10 per cent 
about jhe number of ships await- Charterers were increasingly on the nrevinuc week. The 
ins cargoes. Over 5m tuns or reluctant lu release details of 

tonnage is still lying in the successes. But generally rates in _ . , , . 

region without work. the market showed improvements turo Pe roules is scheduled to 

Other areas reported better on U»e levels of early 1978- rea ch S8 for the larger vessels, 
trading, with the Mediterranean Galbraith Wrightson reported with the rate lasting through to 
and Caribbean noticeably more bulk cargo rales at least as high midJune- 
buoyant than in previous weeks, as toose reported last week 0n ^ Atlantic grajn market 

trafe wa/ domiMted .SweS charter^ «U,ity for 

sluggish. Owners tried to resist V ore shipments. In the Pacific larger ships continues, with a 
any further fall in rates. In the tho volume was substantially possible total of 12 or 15 ships 

U.S. may 
allow Kfir 
Taiwan deal 

By David Lennon 

TEL AVT’, May 2u 
ISRAEL IS hopeful lhat the U.S. 
Government will agrte to the sale 
of 48 Israel made Kfir jet 
fighters to Taiwan. The deal, 
worth 8500m is the largest ex- 
port order Israel erer received. 

The Kfir is powered by an 
American manufactured J-79 
engine. The U.S. has used this 
fact to bar the sale of Kfirs to 
Ecuador and Taiwan in the past 
But Israel has received recent 
indications that the Carter 
Administration mar sow approve 
the sale to Taiwan to " compen- 
sate*’ Israel over llie decision to 
sell American warplanes to Egypt 
and Saudi Arabia. 

Taiwan has been negotiating 
with Israel Aircraft Industries for 
over a year over the package 

Swedish trade surplus 

Preliminary Swedish trade 
figures for - April show a 
SKr l-2bn ($260tn) surplus and 
suggest that the improvement in 
the trade balance this year is 
strengthening out Nordic Corres- 
pondent reports. Sweden ex- 
ported goods to a value of 
SKr 3LSbn. in the first four 
months of thjs year, while 
Imports totalled SKr 29bn, the 
statistical central bureau 
calculates. The four-month sur- 
plus of SKr iLSbn on the trade 
balance compares with a deficit 
of SKr 2.55bn during the 
corresponding period of 1977. 

RSC Mexican order 

A Mexican order worth $1.3m 
has been won by the British 
Steel Corporation's Sheffield 
division— with the possibility of 
more orders to come. 

U.S. newsprint mill 

E. and B. Cowan, the Canadian 
pulp and paper industry engi- 
neers and consultants, will do 
the engineering for a new 
175,000- to ns-a-v ear newsprint 
mill costing SlOOm to be located 
in Virginia in which Dow Jones- 
Wall Street Journal and the 
Washington Post will be principal 
investors. Robert Gibbens writes. 

Europe’s tights industry 
to act on overcapacity 


EUROPE'S KNITWEAR pro- dividual countries taking pro- volume total sales were down 
ducers are to get together to tectionist action. substantially. The Italians have 

work out ways of controlling the The current over-capacity in been less successful in Britain 
massive over-production in the the European tights market — however where the market is 
women’s tights industry which estimated at around 40 per cent dominated by two producers, 
has led to severely depressed — has resulted in part from Pretty Polly and Courtaulds. 
prices and a number of factory fashion changes such as the xbe other European producers 
closures. spread of jeans leading to a claim that because of the out- 

Tbe move, which has been worker system the Italians enjoy 

notified to the European Commis- £ SriiTpe? rear “Sr to 17 substantially overheads 

sion. was agreed at a meeting in :* ai K 1972 t0 and as a result have am unfair 

Harrogate, though only with the P ™ competitive advantage. A new 

reluctant acceptance of the A* tbe same tune however threat has emerged too with the 
Italians whose investment in there has been the twin develop- announcement by Italian macb- 
tights production for export meD * m Ita, y Viewer ? nd utery manufacturers that they 
markets has been the main machinery for producing tights w jj| b e marketing higher per- 
cause of present problems. an< L,H' e - “Sbly 0T f formance machines at the end of 

Representatives of the Euro- figures quoted by the Swiss y 
pean tights industry had earlier Gesplan organisation the Italian The inquiry comes only shortly 
been told in a paper delivered to industry managed to increase its after agreement by Europe’s 
the international congress of the share of the German market fibre producers to try and 
knitting industry that a total of from 18 per cent to 25 per cent restore stable market conditions 
30,000 jobs in Europe were now between 1974 and 1977 and in in their sector. The knitting 
at risk, and that withont co- France over the same period its inquiry will be handled by 
ordinated action to regulate the share went np from 18 -per cent Mailleurop, the European federa- 
market there was a danger of in- to 28 per cent, even though in tion of knitwear producers. 

VW Brazil in Chrysler talks 


SAU PAUO, May 21. 

VOLKSWAGEN OF Brazil, the the Minister of Trade andperhaps. purchase by VW of a 
giant of the Brazilian motor Industry. share in Chrysler BraziL But 

industry, may shortly be taking Meanwhile Volkswagen says it the company says a majority 
over part of Chrysler’s plant to is having talks with Chrysler stake is not planned, 
produce light lorries, compo- about increasing co-operation — In any case, it is believed that 

nents and possibly motor-cycles. Volkswagen do Brasil already Chrysler will continue producing 
Chrysler, which has suffered takes parts and tools from passenger cars in Brazil. It is 
i considerable difficulties in Brazil Chrysler. Building VW light planning to launch a new luxury 
in recent years, has decided to van s in the Chrysler plants is model before the end of the 
cut down the size of its opera- now being considered and, year, 
tion. Its losses were cruzeiros 
19S.3m (fll.lm) in 1975. 
ernzeiros 115.9m in 1976 and 
about cruzeiros 115m in 1977. 

Its production fell from 27.S31 
passenger cars and lorries in ROBERT LINDLEY BUENOS AIRES, May 21. 

1976 to 21,970 in 1977. A MOTOR industry draft law the draft law, which would 

It is not yet clear what type aimed at modernising the remove the present ban on the 
of deal is being worked out Argentine motor industry and imports of motor vehicles. By 
between the companies. Business reducing car prices would free 1981. import taxes would be 
sources in Sao Paulo say that imports and make import taxes reduced to 55 per cent for cars 
Volkswagen Brazil, using its own fall down a sliding scale over the and 45 per cent for pick-ups and 
resources, will be buying up next three years, beginning on trucks. 

part of Chrysler’s plant at an July 1. Motor vehicles cost double or 

estimated cost of 8400m. This It is considered a certainty more in Argentina than they do 
has been partly confirmed by that President Videla will sign in most industrialised countries. 

Argentine imports move 

Soviet team 
arrives for 
UK talks 

Financial Times Reporter 

A 25 member Soviet delegw 
tion arirved in London yester- 
day to attend the seventh 
meeting of the British-Soviet 
Joint Commission to review 
U.K.-S 0 viet economic* Indus* 
trial, scientific and techno- 
logical co-operation. 

The delegation, which is led 
by Mr. Vladimir Kirillin, 
deputy premier and chairman 
of the State Committee for 
Science and Technology, was 
met at 'Heathrow Airport by 
Mr. Edmond Dell. Britain's 
Secretary of State for trade. 

During the visit, wbich ends 
on Thursday, May 25, the 
Soviet delegation will have 
talks with Dr. Dickson Mabon. 
Minister of State for Energy 
and Mr. Alan Wiliams, Minister 
of State for Industry. They 
will also meet Mr. XL B. Green- 
boron gh, president of the GBI 
and Sir John Buekley, acting 
chairman of the East European 
Trade Council and a number 
of other leading British busi- 

The main increases in UK 
exports to the Soviet Union 
last year, which totalled 
£347m up from £2 40m iu 1976, 
were in machinery, chemicals, 
iron and steel, and scientific 
instruments. UK imports from 
the Soviet Union totalling 
£781m last year against £645m 
in 1976, continue to be mainly 
raw materials, including tim- 
ber, with a substantial entre- 
pot trade In precious stones 
and furs. In the first quarter 
Of the year UK exports rose 
to £121m from £54m a year 
ago while imports fell slightly 
to £132m from £147m. 

Marubeni in Iraq 

Marubeni said it has signed a 
Y40bn contract with the Iraqi 
Ministry of Housing and Con- 
struction to build five technical 
institutes and expand an existing 
facility. Reuter reports from 
Tokyo. Fujita. Taisei and Toyo 
Fine Chemical will undertake 
the construction work, which will 
start later in May. The contract 
also covers the supply of 
laboratory equipment and 

case of a 260,000 ton VLCC a 
charter was won to Europe at 
Worldscale 1R.5, compared with 
lS.25 for some charters in April. 
A few deals then were concluded 
nr Worldscale 17. 

Two other YLCCs fixed char- 
ters id Worldscale 19.25 to 
Europe and 21 to the Far East. . 

Brokers reported charterers 
switching combination carriers 
into the dry cargo trade. This 
has grown steadily stronger in 
recent weeks and the switch 
helped marginally the fortunes 
t»f the tanker owners. Cargoes 
of 60.000 tous attained World- 
scale 53.5 to the U.S. Gulf from 
the Mediterranean. 

West African markets moved 
upwards this last week, with a 



World' Economic Indicators 


Invest in the beauty ot 
izturc, -with diamonds and 
liamond jcwdlvry at except- 
on ally good prices from the 
vorlifs leadin'; Iirsc source 

iumtuid company. 

The linesc quality 
lin rounds lor investment, 
iics. or your own personal 
sc, direct front the diamond 
entre oi the world. 

Conner us lor lull inform- 
tion. or visit us. Our shem- 
itoms arc ar London's Savoy 
lore! and at tin; Diamond 
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iternational Diamond Satet 

The Swov Howl, The Strand, 
London ft 1--R i*BP. 
Diamond Buufsf. 

51 Hnvcnierv*raai. Antwerp, 

Moni9V.*»*lNDlSA-lJ. A 

(Alt Diamond* ^ 

Giuomcvd By Ceraikatc.) ids 

April *78 

March "78 

Feb. 78 

April 77 

U.K. £bn 













— 0.270 



March *78 

Feb. 78 

jan. 78 

March 77 

France Fra bn 











. Balance 



— 1354 


W. Germany DMbn Exports 






204 . 









Italy Lire bn 
















U5. Sbn 


1CL9 . 













Feb. 78 

Jan. 78 

Dec. 77 

Feb. 77 

japan Sbn 















+ 1335 

Holland Ftsbn 
















lan. 78 

Dec. 77 

Nov. 77 

Jan. 77 

Belgium BFrs bn 


111345 . 


107 J78 








—&.66S . . 

+2.481 - 

— 12J479 


The first foreign language you ever learned 
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Financial Times Monday May. 22 lgrg. 




Coal Board £200m. 

‘may lift P Ian near approval 


IJ f Jtvvb INVESTMENT of about . works. The colliery should a probable cost of 

* £2 00m ts rmnln>> un far coma on stream in the mid Thorne will »mnl 



in April 

Inquiry into plan 
for fast-breeder 
reactor faces delay 



6 disloyal’ 

By Elinor Goodman, 

Consumer Affairs Correspondent 

THE Confederation of British 
Industry said yesterday that pro- 
posed changes in the law to 
make manufacturers strictly 
liable for defective products 
could result in higher prices 
and fewer new products. 

In its interim representations 
on proposals for changing the 
law relating to product liability, 
the CBI pointed out some of the 
implications of changing the law 
along the lines suggested by the 
Pearson Report and the Law 

But it did not commit itself on 
the fundamental issue whether 
such a change in the law was 
desirable in the first place- 

Proposals for changing the law 
relating to liability for defective 
products have been under discus' 
sion for several years both in 
Britain and in Europe. Most 
stem from the desire to avoid 
another thalidomide tragedy. 

Last June — the English and 
Scottish Law Commissions pub- 
lished their proposals on the 
subject. The matter was also 
dealt with in the report of the 
Royal Commission on Civil Lia-i 
bility and Compensation for Per- 
sonal Injury under the chairman- 
ship of Lord Pearson. This 
was published in March. 

INVESTMENT of about 
£2 00 m ts coming up for 
approval by the National Coal 
Board for a number of colliery 
developments to come on 
stream rathe mid to late 1980s. 

The projected developments 
consist of a new “ super pit " 
in South Wales, an undersea 
mine in Scotland, the resump- 
tion of working in an aban- 
doned colliery and the 
redevelopment to an existing 

Most of the coal to be won 
from these new workings will 
be power station quality, with, 
some coking, domestic and 
general industrial coal as welL 
Tbe new collieries will employ 
about 3,000 mine workers. 

The Welsh “super pit” will 
be at Maigara, near Port 
Talbot and will cost an esti- 
mated £100m. Plans are still 
being completed at South 
Wales area level, and the pro- 
ject will go to tbe Board later 
in the year. 

Margam has extensive re- 
sen cs of high quality coking 
coal, which. It is hoped, wifi 
he taken u.p by the British 
Steel Corporation's Port Talbot 

works. The colliery should 
come on stream in the mid 
1980s and will employ about 
1,000 miners. . 

Tbe undersea pit, which is 
still at the planuing discussion 
stage, will be sunk at Alussel- 
burgh, near Edinburgh, in the 
Scottish Coal Board area, at an 
estimated cost of £3 0m. 

The National Coal Board bas 
proved reserves of 100m. tons, 
mainly of steam coal, and tbe 
pit will be twinned with tbe 
nearby Monktonhall Colliery. 
It will employ about 500 

Drift sinking 

The abandoned colliery' of 
Thorne. 15 miles North-West 
of Doncaster, was opened In 
1926 and abandoned because of 
flooding in 1956 when it em- 
ployed 3,000 men. 

More than 140m tons of high 
quality power station and 
domestic coal have been proved 
within a five-mile radius of 

A proposal Ls being com- 
pleted to re-open tbe pit, and 
to exploit the two rich Barusley 
and the High Hazel seams, at 

a probable cost of about £50nu 
Thorne will employ an esti- 
mated 1,400 miners and is 
expected to be producing by 
the mid-1980s. 

The last of the big future 
projects has already gained 
Board approval. It is a major 
extension to Daw Mill colliery, 
near Coventry, iu the South 
Midlands area development on. 
which began recently and 
which Is expected to cost 
£21 -7 m. 

Tbe extension will boost pro- 
duction at Daw Mill from lm 
to 2m tons a year. An additional 
drift will be sunk from the 
surface of the pit to gain access 
to proved reserves, estimated 
at 200m tons, mainly of power 
station coal. 

These projects are expected 
to come on stream about the 
same time as tbe £500 m Bcl- 
voir scheme, in Leicestershire, 
which will probably be produc- 
ing 7m tons or coal a year by 
tbe late 1980s. 

The major colliery for the 
1980s remains Selby, in York- 
shire. which will also cost 
£500 m. it win produce ti'm tons 
a year, beginning iu 1982. 

| By Adrieane Gleeson 

,‘AFTER A couple of relatively 
■ sluggish I months. National 
[Savings flares again took on a 
! turn of spid in the five weeks 
! to the beaming of May. The 
total was |i37.4m against net 
receipts o:|f 99.9m in the pre- 
ceding lour-week period 
(£105.2ra id April, 1977). 

The increase was very largely 
due to a risijn sales of National 
Savings Cdtificates, following 
the announcement in the Budget 
that the prein t 14th isue was to 
be replaced «th a new and lower 
coupon issunra mid-Jane. 

Net recti* ts on sales of 
National Sarings Certificates 
(excluding |hc index-linked 
issue) rose frin £25.5m in March 
to £5S.lm in |ie five weeks just 

On Friday 



THE PROPOSED inquiry into at Don nreay which was run for a ; J.T J ■ & 

plans by the United Kingdom short time in February, a tits ts 

Atomic Energy Authority to now on scheduled shut down, out , BY ROSIN REEVES 
build a full-stale experimental is due to be brought back onto 

fast-breeder reactor is now un- full power for a 12-iuontlt period . ANGRY SCENES broke out it 
likely to be held until the end shortly, enabling the Authority ; lhf Welsh Labour Party - * 
of next year. and the Central Electricity. annUiJ j conference in Swansea 

The possible postponement was Generating Board to gam operat- , over t he week-end as acti-devota- 
one of the points to emerge dur- ing experience. : tton MP< were accused of 

ing a visit to the authority's The inquiry will decide I u yins to undermine the Guvern- 
nartbern group headquarters at whether or not Britain should go menl - s devolution legislation. 
Rislcy, near Warrington, by Mr. ahead with the building of a .wreenvy resolution » 

Anthony Wedgwood Benn. Secre- 1250 MW commercial demonsira- An unergenty resomtionw- 

tary for Energy, on Friday. tor fast reactor costing with 
The authority, which last week associated plant about £Ibn. h . . oJJ* written lot! uS 

received Parliamentary approval Fast breeder reactors which R.if toVreatir n Welsh ASSiibS 
for Its Winds cale re pro cessing use as their fuel source pluto- Bill to t”* 1 

plant after last year’s public in- nium produced in the current was carried four c a cart 

quirv has indicated to the thermo-rcactors are likely to play vote. 

Minister that the necessary pre- a significant part in meeting But not before a debate which 

paraiory work for another in- energy needs in the 21st century, exposed deep divisions, within 
quiry will take at least a year Mr.* Bonn was at Risley to the Webh Labour Party* ranks 

to £5S.lm in fce five weeks just and discussion will also have to inaugurate a £4m new I CL -9S0 over the proposed Assembly, 

renortod T take place with the electricity computer system installed as part and grasv-ruuts anger at the 

r» r 1 .. . generating authorities. of the Authority's plans to centra- failure nf somo uplsh Labour 

On Fndav |ie Chancellor of Before the inquiry is held it lisc and rationalise its computing. MPs to support the party s long, 

the Exchequer announced m a is , ike , y a decision u -lU have to Tbe Risley computer is the standing pro-devolution majority 

written answeriin the Commons. b e taken on siting and design, first to be supplied to a user line. 

that withdrawal of the 14th issue though the most obvious site is with a new fast multiply-divide ,\t one stage, there was com- 

and introductk'i of the 17th was Dounreay. Caithness, Scotland, unit which according to ICL can ptete uproar, it took Mr. Etulya 
to be deferred i berause nf thf> The Authority already has a cut the time needed for calcula- Hughes, the party chairman, 

rise in inrpros' i-^iu - e prototype fast reactor of 250 MW tions by two-thirds. several minutes to restore order. 

■ to oe deferred.] becau 
| rise in ioteres'. frates. 

Co-op merger issue revived 

interest \ 

Also contributing to the rise 
in receipts were tile National Sav- 
ings Bank's Lnves&aent accounts, 
where net receipts for the five 



The CBI was asked to give the 
Government its views by the end 
of April. But yesterday it said 
anything it said at this stage must 
be provisional as industry had 
not had time to absorb the im- 
plications of the proposals. A 
broad statement of policy would 
be considered by the CB l" council 
ia June. I 

The CBI said it was not con- 1 
vinced that there had been j 
adequate recognition of rhe price ! 
which would have to be paid. Ill 
was nol likely that the price; 
could prove acceptable to the 
public in relation to the benefits. 

It supported the recommenda- 
tion in the Pearson Report that 
any money received from the 
social security system should he 
deducted front an award made 
after civil action for damages. 

It expressed concern about the 
implications for new product 
development. It was impossible 
to guarantee that dangers would 
not arise with a new product. 
Certain industries, such as 
pharmaceuticals, might be unable 
to get insurance cover without 
the backing of a Government 
compensation fund. 

1 1 belteved liability should be 
restricted 1o injury or death and 
not cover damage to property, as 
proposed in Brussels. Any new 
laws should "protect producers i 
from frivolous or excessive 
claims" as had been made in the 

THE QUESTION of whether the 
two central bodies of Britain's 
co-operative move meat should 
be merged is again likely to 
dominate the Co-op's annual 
Congress, to be held in Scar- 
borough this week-end. 

Proposals far merging the 
Co-operative Union, the main 
custodian of the movement's 
conscience, with the more com- 
mercially orientated Co-opera- 
tive Wholesale Society, have 
been discussed for years. 

But they seemed to have been 
finally knocked on the head Iasi 
July when the movement’s 206 
retail societies voted against the 

The special committee, set up 

to study the merger, however, 
still has to present its report to 
this year’s Congress. 


The committee has already 
said that it will recommend its 
own formal winding-up at Con- 
gress, but more than a third of 
the resolutions put down for 
debate are connected with 
changes in the structure of the 
Movement or increasing the 
Union's strength and effective- 

The Birmingham society, for 
example, has submitted a resolu- 
tion calling on Congress to 
recognise that tbe winding-up of 

weeks period' rote to £22.7m. 

I from the £L9.9 iu' reported in 
the sub-committee on the Single : March, and British Savings 
National Federation did nothing Bonds, where ret receipts 

to resolve the problems and tnat . ri ,i- 

some new initiative is needed. ^Sm against 

The other long-running issue £lo f m P^ing four- 

in the co-operative movement is week Period, 
the plan to reduce the number Including accrued; interest of 
of retail societies end create far £32-9m, there was £170Jm to bej 
larger regional societies. added to the total invested, in 

Though (here is no proposal National Savings at the end of 
specifically dealing with this on the five-week period. ] 
the agenda for next v.eek-end’s At £10.2bn. that tobi reflects 
congress, it is bound io be the Government's increasing de- 
discussed. termination to use National Sav- 

The other subject likely to j rags to help to finance its borrow - 
arouse strong feelings at congress] ing requirements, ijy offering 
is the question of trade with savers inducements such as high 
South Africa. At present the re (interest rates and tax concessions, 
are three proposals to he dis-i A year ago the total was onlv 
cussed dea'ing with South Africa, i £S.2Sbn. 

Scrap traders meet 
in London today 

several minutes in restore order. 

The pro-dcvoluuon attack was 
led by Mr. Ray Powell, a past 
chairman, who accused the Mrs 
concerned of “ disloyalty to the 
Labour movement." 


By promoting the 40 per cent 
amendment they had "placed 
■j dangerous weapon in the 
hands of reactionaries of the 

Mr. George Wright Wales 

BY JOHN LLOYD hands of reactionaries of the 


THE GROWING need to re-cycle savings made possible bv re- Georec WriehL Wales 

a range of materials and the cycUsig- It claims that it take TUC Secretary, said that if the 
consequent growth of reclama- 31 barrels of oil to one re f oren( j uni was lost because of 

tion industries, will be high- with“So barrcuthSi lh< -‘ 40 P" ««« threshold, it 

lighted in the convention or the alU j£ n i un , scrap is used. ^ 

Bureau International de la To produce copper wire bars *" e “ rtS _ nationalism. 
Recuperation, which ‘begins in from copper scrap requires only An armry Mr. Nell Kmoock. 
London todav. 3.2 per cent of ' the energy HP . for Bedwellly. and 

Around a third of raw required to convert ore into i prominent _ .nnii-devolutianist. 
materials produced is re-cycled, metal. Energy savings on rnak-j “escribed the attacks as mis* 
According to Mr. Alfred Cooper, ing iron and Steel from scrap j ]";, l ] ri i l ie T ,„ .“'J 1 <* 
world president of the Bureau, vary from 50 to 75 percent. Ibutud ill* char, cm of disloyalty . 
the reclamation industry " is fast More than 600 delegates will j Mr. loan Evans. MP for Abcr- 

— aiumiuium .-iirian IS uwu. th * .jorntiam '• 

la TO produce copper w ire bars the t fircS of I l a I tlon v , . 
in from copper scrap requires only] An angry Mr. Neil Kmnock, 
per cent of ' the energy MP f° r Bedutluy, and 

becoming one of the largest attend the London Convention 'dare and a leading anti- devo- 
industries in the world.’ from 36 member countries jlutionist. also defended himself 

Figures produced by the including the Soviet Union and and called, for tolerance of 
Bureau show the scale of energy East European States. [ differing points of view. 

Town halls free to defy 
independent schools ban 

Wrangler plans jeans expansion 



ONLY NEW legislation could 
stop local authorities from con- 
tinuing to finance independent 
schools in defiance ot a ban by 
the Department, of Education 
and Science, a Whitehall official 
admitted yesterday. 

The Department's ban applies 
only to .local education authori- 
ties. This leaves the 400 coun- 
cils now without educational res- 
ponsibilities — including large 

areas such as Greater Man- 
chester-free to finance pupils 
at independent schools as a 
genera! amenity under the Local 
Government Act. 

In addition.' councils which 
are local education authorities— 
such as Cambridgeshire— may 
decide to use their power to 
make grants to charities to fin- 
ance any of the numerous inde- 
pendent schools Which have 
charitable status. 

WRANGLER has decided it is 
time tfor a farther expansion of 
its jeans manufacturing capa- 
city in the U.K. 

Negotiations are taking place 
with the Scottish Development 
Agency which could lead to a 
doubling in size of the company's 
main factory at Falkirk. This 
together, with expansion else 
where in Scotland, where 
Wrangler has opened a total of 
four factories since 1969, is 

likely to take total employment 
by the group over the next few 
years from its present total of 
around 750 in its UK plants to 
more than 1,000. 

Wrangler, a subsidiary of the 
U.S. group Blue Bell, has been 
expanding— at a time when many 
other UK clothing concerns are 
having to rely on employment 
subsidies to maintain their 
labour Torcc — as a result of tbe 
continuing strong growth In sales 
of leisure wear. 

The jeans market in the UK is 
estimated to have tripled since 
1970 when tiim pairs were sold, 
and the total. European market, 
according to the International 
Institute for Cotton, went up 
from 38m in 1970 to around 
172m pairs in 1976. 

"Wrangler’s proposed • expan- 
sion is intended to cope with 
this continued growth and also 
with changes within the jeans 
market itself. Although jeans — 
differentiated from trousers by 
their lower cut and back con- 
struction — are continuing to 
grow at the expense of conven- 
tional trousers, other fabrics and 
in particular corduroy, are now 
becoming more important along- 

side the traditional indigo-dyed 

Wrangler puts the present split 
in the UK market for jeans at 
80 per cent denim and !!0 per 
cent corduroy and other fabrics. 
The company is increasing Its 
own corduroy output signifi- 
cantly, however, and expects its 
line-up for spring next year to 
he 45 per cent denim. 45 per cent 
cord and 10 pe rcent other 

In the current year tbe com- 
pany Is forecasting a -sales 
increase of around 20 per cent, 
partly as a result of continued 
growth but also from increased 
market share. 

Three companies. Wrangler, 
Levi and Brutis, bold about 30 
per cent of a highly fragmented 
market in the UK hut altogether 
around 70 producers are in 

The use of new materials such 
as Corduroy which requires 
different processing and manufac- 
turing methods from denim, and 
the high cost of marketing what 
has now become a mature pro- 
duce is expected, however, to 
prove too much for some of the 
smaller producers, lacking the 

worldwide resources .of some of 
the bigger groups. 

The leading brands have been 
digging deep into their pockets 
to’ fund much larger advertis- 
ing budgets, and Wrangler has 
maintained a higher level of ad- 
vertising during the past winter 
—normally a slack period for 
jeans sales— and claims this has 
enabled it to double normal sales. 

The company has been promot- 
ing i ls name heavily through its 
Mr. Wrangler commercials on 
television and posters in order 
to get away from generic jeans 
advertising which simply sells 
Ibe product. 

Another objective of the ad- 
vertising campaign has been to 
try and persuade the public that 
jeans embraces corduroy and 
other fabrics as well as indigo- 
dyed denim. 

Predictions of an end to the 
jeans boom nevertheless con- 
tinue to be made by fashion 
writers, but according to 
Wrangler it is still a very long 
way off. 

Mr. Richard Webzeli, the com- 
pany’s UK managing director 
points out that standards of dress 
in society look like continuing 
to become leas formal with 
increasing leisure and mobility. 

offering the makers of casual 
clothing the prospect of con- 
tinued high growth in sales. 

The jeans manufacturers ha\e 
in any case insured themselves 
to some extent by widening their 
product ranges to embrace a 
variety of new products from 
boots to belts and bats. 
Wrangler's own business in the 
UK is now one third in tops- 
shirts and jackets, imported from 
the company’s factories in 
Ireland and Malta or bought in 
from other suppliers. 

There is also further scope for 
broadening tbe age appeal of 
jeans — something which is more 
likely to happen with corduroy 
than with denim. Some 70 per 
cent of jeans sales are to tbe 
16 to 29 age group but sales out- 
side this age range have been 
growing fast, partly because the 
original jeans wearers are them- 
selves now getting older. 

The UK is also only about half 
way in the European league table 
of jeans purchasers per person 
each year, headed by the Scan* 
dinavians who each manage to 
buy 1.2 pairs per year. In Britain 
the figure is only 0.6 pairs per 
year although this is still some 
way ahead of France where the 
figure is 0.36 pairs a year. 


AH of these bonds havlnj; been sold, this annomnwSent appears as a natter of record only. 

The Connell of Europe Resettlement Fund 

for National Refugees and Ore r-Popnlation in Europe 

Fonds de Reetablissement du Conseil de TEnrope 

pour les Refugies Nation aux et Jes Excedents de Population en Europe 
Strasbourg / Paris 

DM 100000000 .- 

6 % % Bearer Bonds of the Loan of 1978 (84-88) 

May 1978 

We handle big Angb-Israeli deals 
with the personal touch. 

AUgEaneine Elsassische 

Bayerische Landesbank 

Ban khans Gebfuder Bef&xnanii 

Berliner Handels- und Frankfurter Basic 

Bank for Gemeinwirtschaft 

Bayerfsche Vereiosbank 

Hypotbeken- und 


You’re hungry for expansion and 
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Israeli markets. 

Bank Hapoalira was bom over 56 years ago. 
We now have over 2S0 offices in o different 
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And a wealth of experience stimulating and 

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the bank's doors open. 

Get to know us better. By contacting the 
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Deutsche Girozentrale 
— Deutsche Konununalbank — 

Hessische landesbank 
— Girozentrale — 

B.MetzIer seeLSokn&Co. 

Trfwfanra A Thr rkhar dt 



Deutsche Bank 
Akt iengese ! bcha/t 

Dresdner Bank 

Bankhaus Hermann Lamps 

Norddeutsche Landesbank 

Berliner Bank 

Richard Dans & Co. 


Deutsche Gcntnaeiwchaftsbauk 
Georg Hauck&Sohn 

Merck, Finck&Co. 

SaJ. Oppenheim jr, & Cie. 

Vexeins- und Westbank 

Westdeutsche Landesbank 

M. M. Warburg— 
Brinckmann, Wirtz & Co. 
Aw i m aese llsch^f r 

Algemene Bank Nederland N.V. 

I'ljfi.! i i:*. 

Banqoe de i'lndochine et de Suez 

Arab financial Consultants 
Company S.A.K. 

Head Office 
50 RoiliMiluii! Boulevard, 
Tel Aviv, Israel. Td. 623211 


West End Branch S 12 Brook Street. Tel. 01-4990163 
City Branch 21 23 Lawrence Lane. Tel. 01-600 0382 

7 Charlotte Street, 
Tel. oSi-ucS 2400 

Creditanstalt - jBankverein, 

Zentndbauk AG - Wien 

Kredietbank S. A. Luxemboargeoise 

Sample Internationale 
a Luxembourg S. A. 

Credit Commercial de France 
Gottfcud Bank International Ltd. 

National? departs 
Daiwa Europe N.V. 

btw Los AngeleJj Cticsgo, Bonos, Z va ri ch, Bans, Toraui^, Aloas&tl, Buenos Abes, Sjo PjuIo, Oaufc 

Pierson, Heldring* Pinson N.V. 
Swiss Bank Corporation (Oven**) LmUirf 

(Luxembourg) S.A. 
Sodete Generate 






,( >ar 

Financial Times Monday May 22 1978 

home news 



! 0 >a|' 


T Attempt 

Long-term trends all to end 
show more spending ‘canteen 

Worries about rising prices 
remain the biggesl reason for 
pessimism. This month 36 per 
cent of those taking a gloomy 
view about the future blamed 
inflation. against only 24 per cent 


PEOPLE are taking a slightly 
nmrv cautious view of thy future 
than mnn.-diaU'ly after the 
Cuduei. aeunrdin^ lo the 
h'U-M -ur\ i-v v >f euiisuincr cun* 
fiueiiCi' (>m tin- I'.u ^n-ial Times. 

F.U'ii cn. Hu- longterm trends last niontlu 
‘‘ :i funher increase in Fewer blamed the Government 

” ,,llt r ^Pending later this for gloomy prospects than last 
. .. mc.oth. while those mentioning 

i in- . injures measuring cun- unemployment a.s grounds for 

Tn!l 1C . r i S s vl j w of lhe,r prospects concern stayed stable at 12 per 
and tin ii degree or enthusiasm cent of the sample. 

? n „ "iiytng consumer durables 
fell this month, having risen in View OD inhs 
April The index reflecting how • 

well-oil " people feel continued The proportion thinking 
tw upw.'rt trend. unemployment would increase 

1 huu-^h most were cheered by rose again this month. White 14 
Iasi in on i h’s Budget, the opti- per cent said they thought un- 
mism seem* tu have faded fairly employment would fall, 36 per 
• iiiu-fcly. Whereas in April those cent said they expected it to get 
I'YpiTiing i hi ni's to improve out- worse. 

numhi-rcd those expecting things 
1,1 "''I w<>r<e by 12 p cr c ent^ this 
month the optimists were in a 
majority of only 5 per cent 
The only group of respondents 

This gave a balance of 22 per 
cent thinking the job outlook 
would deteriorate against 20 per 
cent, last month. 

-.- r -wkwimoiw The index of views on whether 

tn lake a more cheerful view now is a good time to buy con- 
ihis month were professional surner durables fell by 3 per cent 
men who were the only group this month to show a balance of 
last month not to be encouraged 20 per cent, in favouT of buying, 
by the Budget. The six-month moving average 

The monthly Index of Con- 
sumer Confidence stands at its 
lowest level since last July, while 
l ho six-month moving average 
figure, which gives a better idea 
uf long-term trends, has con- 
unued ns downward drift. 

Even so. the picture is more 
cheerful than two years ago, 
when pessimists greatly out- 
numbered optimists. 

The most commonly cited 
cause of optimism was the 
fatalist ie view that things must 
cm be tier, mentioned by more 
than a third uf the sample, while 
14 per cent said they thought 
inflation was under control. This 
was a rather lower figure than 
in January. 

A furl her 6 per cent said they 
were encouraged because they 
thought i he Conservatives would 
lie in power within a year. 

index continued to rise and. at 
+ 21 per cent is at its highest 
fur nine months. 

The drop in the monthly 
"Time lo Buy'* index was due 
mainly tr, the more cautious 
viewy by men with manual jobs. 
Among this group those for 
spending money now outweigh 
those against by only 9 per cent, 
the lowest figures since 

The higher number of wage 
settlements under Phase Three 
in the last month is reflected in 
the Past Prosperity Index. 

Asked whether they felt 
better- or worse-off compared 
with a year ago, 34 per 
cent, said better-off and 33 per 
cent worse-off. This gave a posP 
tive balance of 3 per cent, which 
equals January's record level. 

Past Prosperity has risen most 
Sharply for professional men, 
though interestingly it has fallen 
lor women. 

The survey was carried out for 
the Financial Times by the 
British Market Research Bureau. 
A total of 989 adults were inter- 
viewed between May 4 and 10. 

spies row 

TALKS ARE expected to be held 
today in an attempt to settle the 
spies in I he canteen * dispute 
at British Leyland’s factory, at 

The union management talks, 
however, may be too late to stop 
the lay-off of about 2,000 men — 
half the saloon-car workforce — 
from this morning. 

If the men are sent home, pro- 
duction of Leyland’s prestige 
Rover range would quickly come 
to a halt costing th* company 
about £500,000 a day. 

About 500 workers walked out 
of the factory's paint shop last 

They claimed that iwo foremen 
were using two women canteen 
workers to spy ud the time they 
took for meal break-. They said 
that they would not return until 
the two men were sacked. 

20 '■ 
2 K 



20 : 




ALL 73 



* / 









k J 


- cowwncaiifTOig 
= -—iMfpBispamr 

1970 1971 1972 1973 1974 1975 1976 1977 

Vehicle statistics 
6 disclose too much’ 


the manufacturers who pay for 
the service are subsidising many- 
other organisations which use 
the figures. * . 

There is also a deep-feated 
feeling that the issuing of 
detailed figures monthly exposes 
manufacturers to a great deal 
of unfavourable publicity which 
it would be better to avoid. 

According to this argument, 
regular and detailed publication 
has exacerbated the discussion 
about vehicle import levels in 
Britain, while putting extra 
pressure on British manufac- 
turers. particularly British Ley- 
land. in their struggle to re- 
assert themselves. 

Some executives in the 
industry would like to see the 
figures published less regularly. 
But the compromise formula 
which seems to be gaining 
ground is to reduce the volume 
of statistics now presented in 
the monthly reports. 

PROPOSALS to reduce the 
nnnihiT uf statistic-, issued with 
the monthly U.K. vehicle regis- 
ir.mcin figures, are being cun- 
-uli-H'd seriously by the Society 
• -i Motor Manufacturers and 

Th.' piil'li'* figures arc col- 
lated from highly detailed, com- 
putiT'seil inf (innut tun prepared 
ti.. the Mii'iely tu give its mem- 
tier.* a vuniidenlial day-toy-day 
.u-o.mii uf their own and com- 
,!«•: sales performance. 

They are published monthly 
in the form "f a Press release 
which fjiowi- the registration of 
practically every model on the 
market in Britain, along with 
its lamntrj uf origin. 

The Muteij 's policy on dis- 
closure has earned it the reputa- 
tion or being the most open 
1 railc association uf its kind in 

Amum: objections now -being 
raised against this policy is tbat 

Reduce form-filling 
to minimum-CBI 


I-'i «F4M-FU.LINli to supply official 
-t.'l:stieal information should be 
• t.pi to the Minimum, the Con- 
Jeijeialinn of British Industry 
s.ivs in a report published today. 

A .standing committee should 
W established to watch over the 
tiuveniiiienl"-- needs for and col- 
lect ion uf HibJiniatian. says the 
»:BI This should be serviced by 
a ■areuglhem-d Survey Control 
Untl within the Central 
Statistical Office. 

The confederation says that it 
has received a regular How of 
euinplainis from trade and 
■mlnstrj about th** number of 
fur ms in be filled in. They 


a i-'nmis are too long and com- 

plicated and official jargon is 

us ed - . . , 

• There is sometimes insufficient 
indication of the need for the 

• Sometimes the same informa- 
tion is required by different 
official bodies. 

The concern expressed by the 
confederation has already been 
reflected in changes made within 
the Statistical Office. Officials 
said this year that there were 
plans to introduce computer- 
controlled ** personalised " forms 
for smaller operations to 

These personalised forms will 
consist of a single sheet of ques- 
tions of direct relevance lo the 
company to which they are sent. 


Pigment Colour Manufacturers 

Extracts from the statement by the Chairman of 

Burrell A Co. Limited, Michael Ashworth, contained in 
the annual report for the year ended 31 December 1 977: 

1 . • ho nvo.ifM i Jr ctrc*:itor.vliff icully f or ihe^ 

,* .. , r „*uj:'iy vras expected. Tumvy. er 

v- tv million, on incw^M? pi 7.5 per cenl 

,',.*r it' 7t ; Pi o-iii* pioW M I ho vtvir was £300.700 0976: 

. '1 "nv pressure on margins was particularly 

■■ ‘ ] - expc*!* h i.iik^'i*. 1 ., 

j. , ,-i ttu' ;vr .. -mimes resulls.theBoLifdis fecom- 
n : , . . . . i n, li - id.»i v,i <. l 0 1 flSp net . m.ikmg a total tor 
-.ju '''» , i'vugh«isiv^B«»d , sviewth2i 

. , j . hoi ifititlv leiltvs me very sh-jH-lerm 
♦i . jib. lotion oiihr level k'ld'iicend 
v::v:r:i2cl i:;u;T J upu-n -j'1 iffipiovernt-nl 

. , ■ M'-.iu-. 

eoIoui.s is closely levied to the 
;. r-.-. n -niy s.vneMlIy and 50 the growth tn 
-,t i J oui.r-j 1 0 76 is I'kely to oe modest At this stage, 

, n .’-sinn ct an e. isnfl of the severe pressure on 
.'.h'Lii. i* f or incoming, could have 3 ver\' significant 
•» m uncial outcome loi the year. 

ga-w-Hi mew i*.ii ibe hc«af GteJltE&lem 
■ . .-.u-cc ■ i$n<^,Lon£r H on\\&1nes&)/i UJunedt 

i t ■'.< ■ 
C . • 


* :h-.u r'.a'tencXK^y beoWained fremihe 

i Co i linwl S;.T'0.77 1 o„.-e. !-£'- • 

;t.*5 ■ V.v 

Beynon to head 

year-old assistam secretary of 
the Assistant Masters’ Associa- 
tion, is to succeed Mr. Andrew 
Hutchings as general secretary 
of the 40,000-strong union with 
a salary of £10,000 a year. 

The association, Britain's third- 
largest teaching union, will 
merge with the Association of 
Assistant Mistresses next Septem- 
ber, with Mr. Beynon and Miss 
Baird, general secretary of the 
AAM. become joint secretaries 
of the new union. 

Mr. Beynon will not take over 
j until Mr. Hutchings retires in 

NGA to discipline 
Observer ‘casuals’ 


THE 14 print workers who 
refused at the week-end to 
report for work at The 

Observer Will few union disci- 
plinary proceedings and the 
loss of ail their Fleet Street 

The National Graphical Asso- 
ciation's governing council 
made the threat on Friday at 
a special meeting called in 
response lo The Observer’s 
warning that it would shut 
unless guarantees of unin- 
terrupted production were 
given by the 25 machine 
minders who baited the pre- 
vious Sunday's issue. 

On Saturday. H of the men 
delivered the assurance in 

time for The Observer to 
produce a reduced, 24-page, 
edition yesterday. 

Although the union had said 

that ft would provide other 
staff If the machine minders 
did not comply, there was no 
time to make up the comple- 
ment at The Observer this 
weekend, a union official said 

The reaction of 21 NGA 
men who work for the maga- 
zine Reveille— some of them 
are the same men— to a similar 
warning' will not be known 
until they report for work 
tomorrow. Reveille has also 
suffered stoppages and loss of 


The men are what is known 
as “ regular casuals " who work 
a shift at one or more weekly 
newspapers every week. They, 
like full-time staff, obtain 

work through the anion under 
Fleet Street’s pre-entry closed 
shops for print workers. 

Disciplinary action will bo 
taken by the union’s London 
regional eouncil. Yesterday Mr- 
Les Dixon, Die onion’s general 
president said: ** We shall not 
deviate from the national 
council’s decision.” 

The Observer yesterday 
carried a front-page apology to 
readers and an explanation of 
the week’s events. It said that 
the same dispute about man- 
ning— the machine assistants 
claim they arc five short — 
prevented publication on 
December 4 last year. 

Since January last year 
unofficial disputes with ' (he 
NGA machine chapel (office 
branch) had cost tb«* news- 
paper 2m copies, it said. 

Biggest building union moves 
against site strikes plan 


PLANS for strikes on building 
sites in protest at a pay offer 
have been countered by the 
largest union involved in the 
building and civil engineering 
national agreement. 

The Union of Construction. 
Allied Trades and Technicians 
has told its members to stay at 
work and ignore action planned 
bv the Transport and General 
Workers’ Union. 

This stance may come under 
fire from militant delegates to 
UCATTs biennial conference at 
Dunoon, Scotland, id two weeks’ 

A circular from UCATTs 
executive, sent out at the week- 

end. reminds members that the 
union has accepted the offer. 
“ In arriving at this decision, the 
executive council took into 
account that in other negotia- 
tions where the TGWU bad been 
involved, settlements within the 
guidelines bad been accepted by 
that union.” 

The employers’ offer is said to 
total just under the 10 per cent 
earnings rise stipulated by the 
Government, and to have been 
passed by the Department of 

It has been rejected not only 
by the TGWU. when lay dele- 
gates overturned their nego- 
tiators’ decision, but also by the 
two smaller unions involved, the 
General and Municipal Workers’ 

Union and the Furniture, Tim- 
ber and Allied Trades Union. 

One union leader estimates 
that the offer, said to be worth 
9.5 per cent is worth only 4 per 
cent to the large numbers, of 
workers on payment-by-results 
schemes, bringing its average 
value down to about 7 per cent. 

Similar complaints about the 
proposed increase in the guaran- 
teed minimum bonus element of 
the national wage agreement 
were behind the TGWU’s revolL 

The offer would raise total 
minimum earnings of craftsmen 
from £54.60 lo £6Q.‘iQ. and of 
labourers from £47.70 to £52. 
The present agreement, cover- 
ing 750.000 construction workers, 
expires on June 26- 

ICI shop 
pay deal 


SHOP STEWARDS representing 
about 45,000 process workers in 
Imperial Chemical Industries 
yesterday rejected a company 
pay offer on the eve of resumed 
national wage negotiations in 

The unofficial combine com- 
mittee, meeting in Salford. 
Lancashire, said tbat the offer, 
which had not been formally 
communicated to them, did too 
little for shiftworkers. 

They said it was worth slightly 
under the 10 per cent earnings 
increase allowed by the Govern- 
ment. The £6 a week rise from 
Stage One of the incomes policy 
was not being consolidated into 
basic rates, and that meant the 
loss of £2 a week for shift- 

The committee said it was not 
prepared to accepi anything less 
than a firm commitment to * 
shorter working week io ex- 
change for settling around 10 
per cent. 

The one-year productivity deal 
was negotiated last summer, and 
helped persuade the uuions to 
stop trying to evade a Stage Two 
deal, in breach of the twelve- 
month rule. 

Union might 
vet new smen 

A demand that journalists not 
belonging to a TUC union 
should be refused information 
has been put to the National 
and Local Government Officers 

The union's Sheffield branch 
has tabled a resolution for Ihe 
union's conference in Brighton 
□ext month which it says will 
help “ combat anti-trade union 
bias in the media." 



Ault and 

Ault and Wiborg Group has 
reorganised the executive Board 
responsibilities of its subsidiary 
maintain and increase European 
! interests, particularly in the auto- 
motive and rcfmlshing industries. 

Additional marketing authority 
has been shifted to appropriate 
sales divisioi^ with Mr. Ron 
i Hobart, deputy managing director, 
‘taking over special areas of cor- 
porate development. Mr. Mike 
Mogridge, executive marketing 
director, refinisher division and 
Air. Henry Duddmg, executive 
marketing director, automotive 
division, are now responsible for 
both sales and marketing directly 
to Mt. Gordon Phillips, managing 


Mr. Stanley Axon and Air. 
Graham Shaw have been 
appointed regional directors at 
the Manchester office of HOGG 


Mr. Keith SiddaU and Mr. 
Robert Picking, have been 
appointed joint managing direc- 
tors of C D. BRANALL | BRAD- 
FORD). p Mjr. Graham Simpson has 
been made managing director of 
Hobsons of Shipley, a subsidiary. 

Mr. R. E. Taylor has been 
appointed sales director. Low 
Denier Yarn Division, BRITISH 
ENKALON. from June 5. He 
succeeds Mr. L G. 91. Kovach, who 
has . resigned because of 


Mr. G. EL Enderby -Smith has 
become deputy general manager 
of the FUJI BANK Be is the 
senior non-Japanese executive in 
the organisation and as business 
development ■ officer. London 
branch, he is responsible for 
servicing European customers’ 
accounts and investments. 


Air. T. Gold Blytis is to become 
managing director (magazines, 
books and distribution) and Mr. 
N. £L Richards, managing director 
(newspapers and printing) of 
ARGUS PRESS from July 6. Mr. Lana ay. now managing 
director, will retire following the 
annua] meeting on July 5. The 
company is a member of the BET 

Surveyors ‘still 
suffering from 
building slump’ 

By John Brennan, 

Property Correspondent 

SURVEYORS are still suffering 
from the effects of the building 
slump according to a workload 
review carried out by the Royal 
institution of Chartered 

First quarter figures from the 
Institution's regular Quantity 
Surveyors Workload Survey 
show that the increase in the 
number of commissions noted in 
the Ia« autumn review h3s been 
sustained. And for the third suc- 
cessive qua Her tn ore 6 rms 
reported a higher level of work 
in band. 

But the rate of improvement 
tailed off in the latest survey, 
as Mr. David Male, president of 
the quantity surveyors* division 
of the Institution says that 
there is little cause for cheer- 
tog - ■ yeL" 

Mr. Male feels that although 
the underlying trend is one of 
consolidation of the improve- 
ment shown during the previous 
quarter,” the report adds weight 
to calls for additional Govern- 
ment support 


It could be a truck broken down or in for repair; 
a driver off sick or just more goods to move than 
vehicles to move them. 

Whatever the reason, with deliveries to make 
and no truck available, you and your customers 

That’s where Superbriz (alias BRS) can help. 

Well rent you a truck for a day or a year; we’ve 
got trucks you can contract hire; and we’ve got our 
own national haulage operations. 

Whafs more, we’ve the close appreciation of 
local needs and the nation-wide resources (over 
150 branches) to ensure the right help with any 
transport problem. 

It can be anything from a one-day, one-truck 
rental ... to a total distribution service. 

We see ourselves as transport problem solvers, 
finding solutions that fit individual situations. 

British Road Services Limited 

■ - just say ‘Superbriz 1 

A ffan lad d»[ t--- 

Northway House, High Road, Whetstone, London, N20 9ND Telephone . 01-446 1360 


Survey illustrates slowing 
of profits growth rate 


ArnaiM£*tcd Meal, wunehosfcr House. 
. Old 84*0 street. CC. TO 
Autmniijg Scvur.ty. 25-26. Hxmpstoad 
"w" afel. Hi*. 12 


THE STEADY deterioration of 
corporate profits growth 
among industrial companies 
during tile first 10 months nf 
Iasi year is illustrated by the 
lairs l Financial Times survey. 

Trading profits or 177 
industrial companies covered 
by the survey (reporting 
annual results Tor periods 
ending between July IS and 
October 14. 1977) increased on 
average by 18? per cent. This 
compares with increases of 
almost 20 per cent and 28 per 
cent in the tun previous 
surveys covering annual 

This steady downward drift 
or profits growth further illns- 
trates the underlying sluggish- 

ness of the economy last year. 
a> measured in terms of 
industrial outpul. 

The survey however does 
disclose significant profits 
recovery among some indus- 
trial sectors — notably packag- 
ing and paper and newspapers 
and publishing where trading 
profits increased by 64-8 per 
cent and 56.1 per cent, respec- 

Motor distributors also stand 
out as a sector that has been 
enjoying continued real 
growth with margins bolstered 
last year by a strong second- 
hand market and shortage of 
new vehicles. Trading profits 
of 12 distributors covered by 

the latest survey rose hv an 
average 51.1 per cent. 

Motor profits generally show 
up well in the survey with 
trading profits from motor and 
components manufacturers 
also rising by 57 per cent, over 
the same period. 

The weakest sectors among 
the industrial companies were 
retail stores, where profits 
rose only 8-5 per cent — reflect- 
ing the low levels of consumer 
spending — and engineering 
where profits increased hy 
only 9.6 per cent. 

Surprisingly food retailing 
profits over the period rose 
20.6 per cent, hut this rate of 
growth may be expected lo 
decline in future surveys as 

the effects of the high street 
price war begin to affect cor- 
porate results. 

Trading profits from finan- 
naiicial interest-' over _ the 
period also look sluggish rising 
only 15 J per cent while 
properly shows up. as the 
second worst performing sector 
In the survey with profits fall- 
ing 1.9 per ccnL 

The wooden spoon, however, 
goes to the tin sector where 
profits fell 6.9 per cenL 
However it Is difficult to Judge 
the performance of the com- 
modifies sector overall since 
i.o figures are available for tea 
or miscellaneous mining ju- 
te res Ls. 

Financial Times Monday May 22 1978 


EO&lrrt Prop. 1,0 5 9 
bMMed Metal 2-OSp 
FC Finance 1» 

Pggarty »V-1 2.Z71BP 

I Hiltons ALiurear, Scudamore Roa 
Jtlcwlcr. 12 

Mal 2{V ,H [ Cj » c, '0 |sh - Pieeadillr Hotel. Pfc 
. cafllllv tv. 11.30 
Women Mi 

BOA . 


)mo. Coll sroragr and Supply 
Ootwltn In,. Tsi. 

Wintnmo* i n ». T*t. 



SWckhDlcftrs in*. Tst. 

dividS+q a- interest payment: 
Ban: of (coiUus S.-149P 
Beckman la.i t.TJo 

Btrndenc Snrs. 0.5 d 
C ourtney Pope Tp 

. a 56a 11.10 7T» 

Green ban Id |„d. 0.85p 
1 Herts. 51 . ; ro. 1978-80 2 1 
I H or I ton k 0 Lands 2.2S761C 
Infiall iPd D BID 
Kallmaico 0.925P 
Metal CIO im 2.S136D 
Nortft All; me Secs. 1.ZD 
Oil Eiplrn 2 . 1078o 
Philips' La ns FI 1.1 
SMraa Wj e T.4058D 
Sioogt, ESI . 1.S1SD 
Splrsx-Sare Eng. 5.1 80 
S,kcs (Her y > 2 . 6 S 0 
Wolsienholi * Bronco Powders 4.5665P 

tLorROW. MAV 23 


Anchor Chcfc.. Miofand Hotel. Manchester. 
1 1 .30 

FMMrflllf i»d~ Hanr*r 3-9S1 3P 

■ — 1 ShBlflOn 1-539o 

Harris and .— j.- v _ 

, ..... , - Hunt and MokfoR (MkXlleton) 0,3*5P 

The following Is a record of the principal business and financial »«»*- g«»»s»aw*_g® 

engagements during the -week. The Board meetings are maialy le^wrreiinr.Tst 2 . 1 2 Se 

™ fe a 1116 purpose of considering dividends and official indications are IfSs* 

f^meetink 55-- ' ‘ not always available whether dividends concerned are interims or m i.S4p 

finals. The sub-divisions shown below are based mainly on last PYo n z!§*i*S 0, “- Sm0 * s " 
vear's timetable. Qi^!' ana J J o.ssb 

' ROtOfX 1 dZP 

Harrison and Sons. Stat.onw Had. Ludgat* DIVIDE NO A INTEREST PAYMENTS— lfiSSn l, |n«ls."^47iip B 

HIM. EC. 12 Baker IrttlU. 2305. W hi turret on Eng. 2.759* 

LadOrokc. 11. CopthflU Avenue. EC. 11 Beaufotd 2.34p ... Willis Faber 6.123a 

L*'c Snipping. Trade House. Classtenf Blaenau Cw« 11**<pe Bds. Kd- 21.6. SO ...V mm 

Street CIHSoe 12 5 _ SftTtIRPAT. MAV S7 

Mendei IJMiu. 20. Manorer Street Edln- EhrMi valid* lO'snc Bds. Rtf. 2315,79 51rfw BOARD MEETINGS — 
burgn. 12. is Coronation Syndicate 2cts. 

Pearl Assurance. High Helbara. WC. 12 Eaton Cp*. 56-2 5Ctl. TOWI« davmcNTS — ■ 

pnrrals. Connaught Rooms. Greet Queen Enping Forest 10ljP« Bps. Rtf. 23.5(79 DIVjOENO A INTEREOT PAVMEhll Rd . 
St r eet. WC. 12.30 5uac ABriculturai MtB. con. to-epe bbs 

provident Lite Assn, at London. Abereom Gen. investors and Ttuateeo 2. do 25S1T9 3J«nt „„ nnl. 

Roams. Liverpool Street. EC. 12 Greater London Council 1 Z‘zaC 1982 6WK Cllff»-^s_ Dairies Ord. and "■-»*- « 

Rio Tmto-Zinc. Commonwealth Hail. ie- Greater Manchester Passenger Transport _l-90575p 
20. Craven Street. WC. 11 Executive HHtC Bds. Rd. 21J&'90.5U»PC Gram pian. 2A9ZSP 

Retorts. Rotdrk House. BraasmMI Lane, Hounslow Var- Rate Bds. 1983 £3.3307 pirt™ 

Bath. 3 _ Islington 11%Pe Bas. Rd. ZltfSfSO su«pe Saoir and 4*flnoii 5-8* 

Stanley {A- G.i. Stanley Houses Grey Jove in*. Tst. Inc. 1 -Bo SUKDAY^tlAT 28 

Avenue. OrtHnglon. A Lothian lOtse Bds. Rd. 23I5.T9 

sun Alliance and London hn.. 1. Bar- McBride (Robert) iMIddleton) 2.4*090 
Iholomew Lane EC. 12-30 Mollns S.13P 

Sun Lilo Ass. Soc- 107. ChaapsJtfe. EC. Prudential Asfc 

Ultramar. Winchester House. 100. Old Valley 10 %pc Bbs. Rd. 19J5*z| 

Broad Street. EC. 11.30 siuK 1 

Vosoor 32. Ciran street. W. il Richards (Leicester) 2.634a 

30. George Stanley tA. G.I 3-32728o 

Tweofanicln Utd. .Collieries 34*. . 

Room. West Lancashire 11Aw»c Bds. Rd. 2i;5»0 

Leeds Floating 19B2 £4.1250 

Weir Grp.. Merchants* Hall. 

, ,, . 5ouare. Glasgow. 12 

ChRwred Accountants Hall. Moor- - Pro *™- 

sate. EC. -i2 

Br.t. Prinlire. 20, 4 iderm anbury. EC. 11 
Flsons. Dorqicstcr Hotel. Park Lane. W. 


Grnsvenor House. Park Lane, W. 



Allied Leather 


5»|«PC _ 

Wood (Arthur) 
0 .8984250 

and Son FLonaoortl 

works. AShlen Old Road- Manchester. 3 Bwek^Sre 
Trrcentrol. Agcrcorn Rooms. Great Eastern » , rte re produce ' 

Holel. L.venrool Street. EC. 12 GtSsSo iwf and' j.) 

Yebsters Pttihcations. Winchester House, oorett European Tst. 

... LondonAVarl. EC. 12 .Phll^.1 In, T-J 

\«Ht Trailer! YaBOrth Road. Nofthaller- KevserUllmann 

London Atlantic Inv. T»t. 

ton. Noun YerhMIre. 12 

board Meetings — 


I Advance La J%gr>es 



The Financial Times gives below- the table of company profits and balance-sheet analysis. This covers the results (with the 

London and Northern Gro. 
Monk, inv. Tst. 

Prtti-harB Services 
Trust Union 


Avon Rubber 
BOC Intm 

Carr i John I iDoncaSter* 
Dennis u. H I 

Ransome Hoffmann Pollard 

preceding year's comparison in buckets) of 237 companies whose account year ended in the period between July 15. 1977, and Iffniay twcSaginp ' o?<?‘ u®»' o.mIcIp 

Ambrose Inv; Tst. Art Des*. 

Hunting Asscd. Irds. 

Leisure Cara»kn Parks 
Transparent Piper 
Wi« Grp. 


Borinwick (Thera*) 

K Shoes 
Mg, rhea 0 

Pladan's I'Scarberough) 

Reafearn Nall. Glass 
Scotlish Nat. Tnisi 

Ash and Lao 1 .E 343 P 

Barnet 7l;oe B*. Rd. 29 1 1 78 S'(OC . , 

BarnsJev 12*spC_8dS. Rd. 19,5183 fi-'isuc iindsav and Williams Z.SP 
Bibdv J.) 4 02. Jo London Pavilion 12.5p 

Brent 1 2 Soc Bds. Rd. ISIS 82 S'mcc r“"5j Bank of Canada 37. Bets. 

Bristol Stadium 0 34do Sandvik Akllebolag B SHr 5.7S 

Brotlierhood iPfter) 1.81 5p Selton 9i,PC Bds. Rd. 24.-5178 £4.7771 

Bun- 7 '-pc Bds Rd. 29*11.78 3-', DC Southampton loM and South of England 
Cent. Scotland Water Dev. Bd. 3Nuc Bds. poval Mall Steam Packet S.BIo 

* Vnrti'o Rate Bds. Rd. 19 11.80 Turnbull ^Scott^Shtiroln'g 1 '/? 

8 I.PC Ms. Rd. 21. 1 179 41^ •«**« Pub'lcatitins 0-BD3385. 

Enfield 71 -dc Bds. Rd. 29/11-78 



Babcock and Wilcox. The Business Centre. 

116. Pall Mali. SW. 12.30 
Bestobell. Sheraton Skyline Hotel. Bath 
Road. Middlesex. 11 

Bouftoo iWilltam). North Stafford Hotel. 

Stoke-on-Trent. 12 

Brecdon and Cloud Hill Lime Whs-. 

Brcedon-on-Ue-HIII. Leicestershire. 12 
Brown and Jackson, Crest Hotel. Preston. 
Lancashire. 12 

Catalln. Churcltgate Hotel. Churchgata 

this week 


COMMONS— Debate on pay of 
the Armed Forces. Motion on 
Financial Assistance for Industry 
(Increase of Limit) Order. 
LORDS — -Debate on policies on 
North Sea oil. Debate on 

Street. Harlow. Essex. 12 rwfti wooe in the U K 

Clayton and Son. Queesa* Hotel. Leeds. 2 rerUgees m me ua. 

CHIford"5 Dairies. Maidenhead Eurocrest SELECT COMMITTEES — 

Ea H g^ l 'stl? ,d C! irt a5» 1 ^o , ri- 30 8 «ic Expenditure. Education. Arts 
Hotel, st. Man* Axe. 12 3nf i unine Office Sub-Committee. 

aSi I s ? 3 HD,,se ' c * stJrtank str ^*- Object: Provision for museums 
8P^' vi ra S B Vim? PAYMENTS_ H |atr e °™H^r. £&rp£? and libraries. Witnesses: Stand- 

Bndon 3.3430 Lane ;Pmrv). Cocorde Suite, me Excelalor i n2 Commission On MUSeUEDS. 

cfartaon mtni. Tools ob. 1982-87 s'joc Minei. ' Abereom a Roams, Liverpool street. Standing Conference on Libraries 

Conr “ “ " " — •“ — 

Cere Woracci 0.1375P- Do. 6<;ncPts.Pr. Pearson 3 Longman. Vicars Conference Hall. ^ RfT*" „ . . 

s.iioc Miii Bank Tower. W.. 1 1.80 Public Accounts. Subject: 

P S n T^r.sw. rs , 2 Co,rf,m31cc H9, ‘- Mi “ Northern Ireland Appropriation 
^^Parii'TE^boS^"^" Rcrtl Accounts. - Witnesses: N.L Dept, 
ficaar Mix'ed craicrew* Dorchester Hotel, of tbe Environment, N.I. Dept. 

Sooar and ^Jatteon. "chartered Atcoununts’ Education, S pm. KOOIU 16- 

s£*re E J 1 Science and Technology. Japan 

^rminjijm, ha^heme Roan. Edgb«too. Subcommittee. Subject: Innova- 
board Met tings — tive Research and Development 




_ Finals; 

wf‘&£ ;s i K ?se o * c **«' r 

October !4. 1977. which published their repurls up to the end of April, 197S. (Figures in £0U0. ) 

in Japanese Science based 
industry. Witness: Mr. Alan Wil- 

IMH 'Sri.'V V... "1 

1 rv-lmcr 1 


belnre Ini. 
3 Tux 




Knni»l f.-r 
, l)lYlill.-ll,l* 

1 »r*l. in* 


11*49 1 1 Flnif 

■ Net Cnpllal 

\H l!+ 
•l*ir:i •••* 


:%pi rurren 






; iiii .. luii. ire 


■ 1 IX llun 



1 K 1 

Bl. ILIUM. 7 


• 11.676. 




10.063 l 
>8.530. ! 



6.416 +30.2 

: ,4.9S9( ' 



+ 16.8 


• 5 .BIO 1 

• 46.004 


! 23.4 
' (24.4. 

■ 13,2021 

i I'MII M"ll Mi 8 




*-20 3 




1 13.592> 



8.473 t41.9 

1 >5.970i 








. 19.2 




i*-\ bl.KlTRN'. hit'. 



. i 32.9 



(29.660) . 



25.037 +61.7 

• (15.4811 




■ 32.892) 



1 19.4 

• 131.863) 

R.M.INKhlrIM, .. 41 

. (139.501, 








, 56.291 +21.1 


1 5.68 1 

+ 24.7 





i 16 0 
. (26.6 



>1 U'HINE TimiIjj .. 3 










; il.512( -28.0 

• I.I 6 I 1 





• 1.197* 



: 17.8 



Ml* . I'M'II VI. 8 


1 69.976 

1 (52.440) 






■ 19.225) 

24.867 h 47.2' 

1 16.898> 

■ 5.813* 

+ 22.8 





: 20.0 

*12 l.S70i 





1 - 20. 1 







122.596 +34.8. 












hl.ti.lhoM«> a 

If \tilu 4 IV 

; 11.195) 


! i 

1.057 . 






410 -20.9 

1 >3391 * 



+ 12.6 





1 28.9 


1 1.545i 

l 15.807 
' >13.947) 

j -v 13.5 

11,397 . 
(10.172) [ 

(9.305) ' 



' 5.200 , + 17.3 

1 (4.4321. • 








; 16.6 
: (18.1- 

■ 25.356* 

MMti'IW J! 12; 

i.i i>1 Hu\hM> 

: 179.996 
l (151.369, 

J + 37.0 



188.287) ; 



: 55.284 1 ^-32.3 

i (41.815) : 



- 27.9 



(648.115) | 

! 19.7 




Ml mu: 13 




i + Sl.lj 

J j 

26.255 , 
(16.418) : 

(11.916, . 



i 11.547 - lOfl.l 




+ 16.0' 

17.330 , 
•9.290* 1 

; 160.718 

i 16.5 

■ 35.554) 






184.584 ' 
(132,717. ! 

158.618 ‘ 
U 10.349. 1 

(56.837. . 

72.441 : + 3B.8 
*52.206* . 



+ 21.4[ 



■841.467, 1 





Hi:KW6i{|jsa 1 a 

i ! 

: 344.490 


275.551 1 
(243.996) I 

230.790 ■ 



. 113.349 1 + 51,3 
[ 186.328, 



- 18 . 0 ' 



1.841.105 ' 
1 1.636.437; ; 

l 15.0 
| (14.9 



I'l.^l ILr.KKib? 1 1 

A «'|\)> 



* SB. 7 

3.830 1 

(Z.B 681 : 


1 2.«36> 

1.636 ' 


[ 1.718 ■ + 37.4 

: r 1.250* ' 







23.550 1 

.18.159) 1 





HiTKL»4.i \TtKK«> i 3 ' 

■ 142.486) 

; t 14.0 

(116.7231 ■ 



40.152 | 
■ 30.5651 

1 30.168 ' + 42.2 
. ,26.839* 1 

• 11.688. 

- 13 . 0 I 



1.155.537 | 
• 1.113.492) 



• 14.6041 

l.MStKE 6 




: - 34.0 

16-309 : 
*11.814. 1 

15.467 • 
(10.816) ' 

8.406 : 


; 7.032 .+44.5 




+ 40.2 



39.680 : 

• 28.162. 



• 11.437, 

Fi.K.lM . 4 


1 14.460 

* + 14.6 

,70.634) \ 

>66.915) . 

17.656 • 
>38.5461 : 

45.112 +28.0 





.46.3 53 ( 

(409 959 1 



■ 53.950* 

F.mll l.'KI.IItiM* 4. 



+ 30.6 

>23 594i 



13.723 , 
(10.852) . 

14.773 +38.7 

* 10.648, 



+ 12.1, 

8 629 

94 506 



- 2.153 

Gosport 12 -vdc Bos. 

ln|«rcorn Shs. «n o.v.) on i«a> up. ana- • chAm i 

■S- «^ 8 - Fr aSFJB^E hoZ. -n •SEPl of 

LOMOU '’ 7 - pe BttS " *“■ aSSS^^SJ-Hota.. Huddenheitf. ,2 ^ 14 -' BC ^ ^ Industry. 6 pni._ Room I 5. 

LHvr Valler 9t,pi Bfc. Rd. 19*11* ‘BO A-,dc BeNair Cesmrtlts. Hew Road. Wloslord. Awora 3.9bo 

K,nssw UBM K&UTS&. i^049 

*S:il?S k iJ? l,frtei 7,;BC BdS " Be " C ^a U rQu^“s^5: W C C dn ?| U9h, R0MnX Wh^i^fEog.. New Wh/mogtou. Ch«-1 
lid Bedlordihlri Var. Rate Bd*- Rd. Car Dots mini.. C ar pets IMnl. Centro. 14- tnrSgld. 12 __ I 

19 1T/E0 £34875 75. Bemeis Street, W. 12 W Hh Faber. Ten Trinity Souare. EC. 11 1 

Milton Keynes Var. Rate Bds. Rd. 17,1 1>B2 Fogariv 16-1- Havcnsidc FIsMoft Road. Wilson iConnolly). Saxon inn. Northamp- 
£3 5500 Boston. Lincolnshire. 2.15 ton. 12 

Mont lards 7*j>c Bds Rd 29/11:78 3 ‘iuc Freemans Oondon S W). Copnaimfit y ^. t *y i i!. r LS*g , *Tf wt . 12 
Newark 71-pe Bds. PcL 29.11 7B ].',D( Rooms. Great Queen Street. WC, 12 BOARD MEETINGS— 

Newcastle * upon T*ne r*;oc Bds. Rd. Grattan Warehouses. Bradford. 12 Finals; 

19-1176 3.'»pi Harris and sholdoo. North Court. PacWnq- Ash Sptnmne 

Newham war. Rale Bds Rd. 17,11.02 ton Park. Nr. M err den. Warwickshire. 3 Ayreshlre Metal Prods. 

£3.550 0 HoSkins and Horton. Midland Hotel. New Boecham 1 

North Herts. 7':P« Bis. Kd. 29 11 7B 3 ‘.PC Street. Birmingham. 12.30 Courtaulds . 

North Tyneside Bos. Rd. 29*11178 London Brick. Connaught Rooms. Great Exchange Tole9taoh 

3*,ec Queen Street. WC. 12 mtni. p^ml 

Nuneaton 7 *-dc Bds. Rd. 29 n 7a 3',nc Low and Bona- Angus Motel. Dundee. 12 Kaiser Bonder 

Reddlch 7';pc Bds. Rd. 29 1 1178 3 - «nc Magnolia. Sutton Road. Rochlorn. Essex. Lamotrt 

Rhondda ti : dc Bds. Rd. 29/11 78 3:*pc 12 _ MliWW Assets 

Si. Edmundsbur* 12N0C Bdi Rd. 19*5.82 Marshall "Thomasi and aoxleyj. Royal New Throgmorton -Tst. 

sr.-oc Victoria Hotel Sheffield. 12 Polynurk 

Sallord 7, :pc Bds. Rd 29-11 79 3’aoc Newarthiil imperial Hotel. Russell Sauare. Press •Wlliaml 
Shell Transport and Trading iReg.1 6.882 b. WC. 12 30 Sumner ■ Francis) 

Do ,Br.i 6.se2o OTex. oi rex House, sieohen Street W, Time Prods. 

Smith and Nnohew Asscd. 1.61 Boo 11 _ Inlarlms: 

South Oxloroshlre 9 '<oc Bds. Rd. 19 1180 Phoemx Ass.. Phoenix House. 4-5. King ASScd. Ing. 

f.D( William street. EC. 12 Bass Charrington 

Stannic Enn. t.4o Prudential Ass.. 142. Holborn Bars. EC. Caravans mini. 

Sunderland 7i;pc Brts. Bd. 29 11178 3»,ec I2.1S . _ Fluldrivc Eng- 

Wansdcck 71-oc Bds. Rd. 29 11-78 Z-'joc (H. and J.i. 660. Chester Road. Gomme 
West Dorset l'-pc Ms. Pd. 29-11 73 S'-oc OW TcaRord Manchester. 11 Homfrav 

West Lothian 8 *wk Bps. Rd. 2M1I7I Reckltt and Colm^n. Connaught Rooms. ICL, _ „ „ 

4. m pc Great Queen street, wc. 11 jenks and cattell 

WEDNESDAY. MAY 24 Reycrtex Chemicals West Road, Temple Keystone tars. 

COMPANY MEETINGS—— Fields. Harlow. Esse*. 12 Marlev 

Berwick Tlmoo. WelH House. 79. Weils Shame and Fisher. Golden Valiev Hotel. Morland 
Street. W. 12 Glnuce»icr Road. Cheltenham. 12 

Blackwood Hodge. Dorchester Hotel. Park SmFh >W. H.i 76. Shoe Lane. EC. 2.30 

Lane. W. 12.30 Taylor Pallister, Rural 

Boosey and Hawkes. Cato Royal. 63. Regent Newcastle upon Tyne. 1 . 

StrorL w. 12 Tern- Consuls to. Lawrotrce R Mtf. Totten- flrow/i and 7p 

Bronx Eng.. 75. Harborne Road. Edgbas- ham.. HI 2 faoe Inds. 5^02o 

ion. Blrminghani. 12 Whittington En9- New Whittington. Ches- ftMla 2.21 2«p 

Dickinson Rodin son. 1. RcdDIttB Street, tcriield. '2 
Bristol. 12 Willis Faber. Ttn Trinity Square. EC. 11 

props, ol Hay's Wharf 
Blanlvtc Ten 3 So 

Expenditure Committee, Gen- 
eral Sub-committee: Subject: 
Treasury proposals on supply 
estimates and cash limits. 'Wit- 
ness: Treasury. 4.15 pm. Room 8- 
COMMONS — Home Purchase 
Assistance and Housing Corpora- 
tion Bill, remaining Stages. 
Motion on the European Com- 
munities (Definition of . Treaties) 

' (No. 4) Order: 

LORDS — Wales Bill, second 
I reading- *- • 

Nationalised Industries. Subcom- 
mittee A. Subjeet: Innovations 
in Rural Bus Senses. Witnesses: 
Association of County Councils 
4 pm Room S. Joint" Committee 
on Statutory Instruments 4.15 
pm Room. 

COMMONS— Motion on EE^ 
I Document on liner conference; ^' 

Francis Inds.. Great Eastern Hotel: Llrer- W.lson fCoonollvi. Saxon In*. Northamp- Ob. 1986-91 at £9 
pool Street EC. 12. IQ ton. 12 CIVcKrwlale ln». Q.6n 

G»n. Accident Fire ana Life Ann.. General BOARD MEETINGS — £ W, !2 1S S i are *. A 

Building;. Perth. 11.30 
Globs > Antony) WlncnMter House. 
Old Broad Street. EC. 12 


100. Scottish Inv. Tst. 

Spencer Clark Metal Inds. 


Drayton Consd. TO. 2 p 
E lectrolux lAktlebalaget 
SKr 6.3 

ElectnrfioO B 







16 .I 661 

. -r 56. 1. 









a 1 144.6 



* 12.8 





ruKAt.IM. \N|i 




4 64.8 







6.400 -234.6 











• 24.8 
• 16.21 






May "4 Business to Business Exhibition Horticultural Balls, S.W.1 

Mav 31 — June 3... Royal Bath and West Show Shepton Mallet - • 

June 3 — \ Third Hot Rod and Custom Car Show Belle Vue, Manchester 

•7 Lighting and Electrical Installation Exhibition "Wembley Conf. Centre 

June 5 — S 

British Hospitals Exhibition 


June 5 — 8 Decorative products trade exhibition (Walpadex) Nat.’ Exbn. Centre, BTaain 





+ 8.5 '• 14.531 
- • 13.606* 




I >4.847) 

: 5.430 

■ .2.705* 

. + VJ0.7 










12 401 

June 6 — S 

June 6 — 8 

1 l.i.UHl Nf.. .(Mi 





+47.8 6.606 




• 1.830i 



- 1 16.7 



+ 17.1 









Juie S — 10 

June S— 10 





' + 84.9 7.626 

' « 6.04li 





. 3.502 

, * 36.4. 












June 11 — 15 

The Fine Art and Antiques Fair 


1 541.000 ,*-10.0. 473.000 

(491.680) ; * *430.000. 



■ 186.000) 

, 210.000 
■ (167.0001 

25.7. 43.670 * 21.3 231.330 2.567.000 ■ 18.4 1.150.000i 

■ 36,000. (190.000. i2.447.QOOi 17.6i (1.205.000 

H'Yy AMI (i.IJIt) 

room equipment, joint exhibition 

June 13 — 15 Three Counties Show 

June l! — IS International Fisheries and Marine Equip. Exbn. Aberdeen 

I June 35 — 39 First Interna Lie nal Frozen Foods Conf. and Exbn. Olympia 


, 1.287.880 +14.7; 1.088.248 874.389 391.228 ' 452.526 -32.6 126.339 
.1.122.681.*’ I (939.078; (745.406) .375.354i J (341.147- ’*105.207) 







15.5) (1.524.438 


178.940 :-15.8' 115.730 
1155.300) >102,582. 







■t 35.8 








"Vi 1' t hV» 11’HtM 








■ 1.082. 



- 559.4 

■ 569* 

10 0 



17 937 

16.8 ! 130.336 
18.0) ' (111.139, 



■ 3.497, 


May l\S — J une 1... lmcrnatona! Industrial Equipment. Exhibition 
May 30 — June 4... Int. Fair of Equipment for Civil Protection 
May si — June 3... Int. Bio-Medical Engineering Exhibition 

June " — 11 International Trade Fair 

June 4 — 8 Israel Technology Week 

June 5 — 10 Int. Exhibition of Machine Tonis and Tools 

June 3 — in '.. British Industrial and Scientific Technology Exbn. Seoul 

Min,. I\|»l >) ill l|. 


185.45 1 
■ 149.087, 

* 24.4 



■ 68.903, 






20.156 -29.9 




838 4?5 

13 7. 



1 OTAi, I 177 


2.237.871 - 18.5 1.782.580 
■ 1.889.027* *1.513.512* 



*599 333. 

761230 -34.2 309.578 

■ 567.401. *171.410. 



10 93 > 526 
9 34* 3i* 

16.5 . 3.008.696 
16.2* <£.699.408 












* 13.8 



-11.7 45.264 




• 18.8. 

-2 685 
a -2.632i 

|H-<M|'\T H ■ ’ I -h>. 
UKIIL H \ M LANKs’pi, 

H1IU, V(. Iti. H.\“.l. 

■ 65.820) 






• 7.901) 



* 21.0 



- 13.8 



•364 427. 

10.0 i 60.334 
11.2* .<'-37.227. 

June l‘J—16 World Congress on Automatic Control 

June 1-7 — 21 Int. Rubber and Plastics Conference and Exbn. 

June 15 — IS Solar Energy Exbn. and Conciress 

June ^'1 — 'J4 International Wire Exhibition 

June 'Ji — an International Dairy Equipment Exbn. and Conf. 

June -7 — oO Public Transport Systems in Urban Areas. Exbn. 

and Conf. 

| July J — 9 International Rehabilitation of the Handicapped, 

Exbn. and Congress 

July -1 — 6 Third Int. Conf. and Exbn. on Marine Transport 

using Roll-on /Roll-off Methods 



rN*i;K-\Nf. b HK'.>krj;> 

- - - l 

" 2 

| < 12 . 831 > 

!- 22.9 12.949 

i ,' 10 . 410 * 


• 8 . 022 ) 


( 4 . 036 , 


1 3 . 996*1 

- 31.9 

• 1 . 463 * 

- 11.6 

■ 4 . 136 . 


3 079 

6 J .8 >. 
533 . 1 ;,: 


( 5 . 736 , 

1 .X VhsSTM LM 1 Ill's! s; 



( 38 . 411 ) 

' + 11 . 3 - 41.113 
( 36 . 484 . 


( 26 . 304 ) 


( 10 . 473 , 

. 18.209 

1 ( 14 . 986 ) 

. + 21.5 


113 . 840 * 

- 20.3 

■ 1.884 


* 638.182 

6.2 : 
: 5 .7, j. 


( 15 . 808 , 

l'l!Ul*EKTX ■ 


• 55.6921 

1 — 1.9 52.295 

. ( 53 . 208 , 


( 9 . 897 i 


• 7 . 090 , 

. 2.825 

( 2 . 010 * 

- 40.5 

■ 1 . 743 * 

+ I 0 S .8 

■ 1 . 725 , 

635 . 5 S 8 
883 . 932 * 

' 6 . 0 ; ' 


( 29 . 651 , 

SI lav. FIVI.M'I.NL 



. 41.6751 

-49 5 57.287 
( 30 . 136 . 

. L 6 . 794 . 

. 8 . 54 1 . 


* 7 . 776 * 

+ 79.9 


■ 4 . 239 . 

- 21.6 


6.6 se. 



13.2 ! 
IS.Oi > 

■ 20 . 017 . 




'ZS 6 .S 18 * 

+ 15.7 272.425 
• 228 . 947 * 

. 133 . 493 - 

• 63 . 935 * 

. 78.784 
• 62 . 166 . 

- 26.7 

37. 189 

- 22.9 

96 584 
• 77.745 

—. 594.659 

2 - 357.562 

10.5 . 
• 9 . 3 , t 

■ 39 . 353 , 




•261 * 

+ 29.9 335 

. 257 * 

3 35 
* 237 . 


. 107 . 


* 149 . 


9 C 

• 84 : 

- 13 1 

I ti. 



3 . 017 . 

10.3 : 
e. 5 i 






1 • f 


■ . 




' 1 ! 


• 3 . 420 * 

- 6.9 2 779 

2.81 a 


2 . 818 * 


. 1 . 733 * 


•I. 0 B 4 . 


■ 606 . 

- ts.a 

5 TV; 

4 S .5 ■ 
• 50 . 3 * 


1 537 . 

31 IM. > 

*1 IM M, 


1 1 

. — - 






* . 


• -1 1 


flYEIMlh.SS 7 li \ 1 ‘hK.T 


• 156 . 868 * 

- 2.7 157 . 4.92 

< 134 . 258 * 


. 113 . 716 , 


■ 56 . 791 * 


* 42 . 919 . 

- 40.0 


■ 10 . 974 . 

+ 59 . 7 - 

514 iO. 

53 C 40 - 
535 . 67 S* 

16.5 ' 
'< 9 . 6 - ! 

1 1 7 . 63- 1 
138 . 359 . 




( 160 . 549 * 

+ 2.6 14 Q.C 06 • 

■137 533 , 


■ 116 . 791 ) 


> 58 . 631 . 


( 44 . 152 . 

+ 30 1 

ie .323 
■11 664 . 

+ 57 1 

65 54 7 

• 52: 70 

c-=! < 0 ° 

16.7 ■ 
■ 19 . 8 ; ;■ 


■ 138 . 180 ' 

Station Hotel. Braedon and Cloud Hill Lime WM. 3.76Spj7 pm. Opposed Private Business. 

1 D.i, iJSITn I LORDS— Conservation Of Wild 

Creatures and Wild Plants 
ciayton son 3.1944a I (Amendment) Bill, third reading, 

^^'geb-gi at^'pe ri S2r?^d 7 ^iFiliM Bill, committee! Co-opera- 
tive Development Agency Bill, 
second reading. Debate on com- 
ments made by Lord Donaldson 
of Kingsbridge about Mr. Basil 
Davidson's book “Discovering 

diture. Trade and Industry Sub- 
committee. Subject: Measures to 
prevent collisions and stran dings 
of noxious cargo carriers in 
waters around the United 
Kingdom. Witnesses: Represen- 
tative of Protection and 
Indemnity Club. Marine Insurers' 
Joint Hull Committee. 10.30 am., 
Room 16- 

Nationalised Industries. Sub- 
committee B. Subject: Future 
of the Electricity Supply Indus- 
try. Witnesses: Electricity Con- 
sumers' Council. National Con- 
sumers’ Council, 10.45 a.m.. 
Room 8. 

Expenditure, Environment Sub- 
committee. Subject: Housing. 
Witness: Mr. Reginald FTeeson, 
Minister for Housing and Con- 
struction, 4 pjn. Room 5. 

Public .Accounts. . Subject: 
Northern Ireland Appropriation 
Accounts. Witnesses: N.L Dept 
of Health and Social Security, 
4 pun.. Ro om 1 6. 


COMMONS-— Debate . .on. the 
Army. Motion on the Arrays Air 
Force and Naval Discipline Acts 
(Continuation) Order. 

LORDS — At 11 a.m. Tuvalu 
Bill, third reading. Trustee 
Savings Bank BUI, committee. 
Motions to approve Planning 
(.Amendment) (NI) Order, 197S. 
Health and Safety at Work (NI) 
Order, .1978, Building. Regula- 
tions (NI) Order 1978, ^nd 
Licensing (NI). Order 197R 
House adjourns, for Spring . Holi- 
day until June 6. 

Relations and Immigration. Sub- 
ject: Effects of EEC membership 
on Race Relations and Immigra- 
tion. Witnesses: Officials from 
the Foreign and Commonwealth 
Office, Lord Chancellor's Dept, 
and the Dept of the Environ- 
ment, 4 pjn.. Room 6. 


COMMONS— -Debates on various 
■subjects, before House adjourns 
for Spring Holiday until- June 6. 

New Hott. Hall, S.W.1 
Wembley Conf. Centre 
Ardlngly, Sussex 

Nat Exbn. Centre* B’ham. 


Kranj, Yugoslavia 





Basle . 


Basle . 


London, S.W.7 
Tickled Trout Hotel, Preston 
Adeiphi Hotel, Liverpool 
Piccadilly Hotel, W,1 

May J5 — 
May J5— 26 
Mai 2S — J1 

UHIST. Manchester - - - 
Old Government House 

Hotel, Guernsey ] 

May -4 Imperial College: International Finance 

May -4 British Institute of Management: Cost savings 

through materials handling 

May 24 Stock Exchange. Northern Unit: Annual Investment 


May 24-r25 Anthony Skinner Management: Improving stock 


May 24 — 23 Institutes of Chemical Engineers and Civil 

Engineers: Successful completion of overseas 

May — 26 European Study Conferences: Double Taxation 

Taking advantage ol international agreements 
. Inst, of Production Engs.: Application of Micropro- 

eessors and Mini -Computers in Manufacturing - Metro pole Hotel, Birm'etx’m 
. British Textile Confederation: World Textile Trade " 

—an International Perspective 
. European Foundation for Management Develop- 
ment- 7th annual Conference Private and 
PniJic Management in a Mixed Economy 
May jy— tune 2... Dept, or Labour and Productivity. South Australia: 

... International Conf. on Industrial Democracy 
I-Iiy University Business School: Recent Develop. 

ments in internal Auditing Gresham College 

A^ra tun. pc I London) : European Fisheries Conf. Sheraton Hotel, Brussels 
Insliliuion of Public Health Engineers: Balsam University College. 

.Lecture — Prof. R. S. Engelbrechl 
Institution of Mechanical Engineers: Design and 
. . . l’" 1 Small Internal Combustn; Engines Isfo of Man 
“L.,or\II tOigamsalion for small and medium 
srced enterprises in the EEC»: The Future for 


‘can afford 
cuts in taxes’ 



Bjr Michael B landed 
THE PROPOSED tax fedactlona 
in ‘the Finance . BUT can be 
afforded by. the. Government 
without the need for tax. rises 
later in -the year, the Charter- 
house Group says to-day in its 
latest business forecast. - 
_ — _ ... Ti ? e group says that inflation 

London, W.C.2. hn the U.K. will- be higher than 
the Governments figure of .7 per 
cent As a result, there would 
be an increase of £lbn. in tax 


Tic rlpfsiftution follows clnacly that , intanitaiton r ouircd unJer Ui^ Com- 
of ;tiv Insuiui- dart KmoiIi* a) Aimarkt. paalvs Avr. iw... 
ivJiicrt Ha* bv.-n J iopl.'rt Oy Ulo Stack I . , 

l- whan*: 0*il> Mltlaal LW. ( Coi 2 c '" s »™fcls b-for% aert 

j ms > irjrtit,* pn.ii!? plus i h -> - " r ' M 

ill, -a; _riiU oihi-r miiuiii- nruu^nv { 1 ■ ■' d 0 “ r n 

V1)d.iii> ", in-- im.iiu.Tal r iwfi*vl 

Thr ll- , U' , 

.j.-pr in’ mn 

stui'I' h.;i.,r- thaiuim 
l.uii an.l ullur Uilf-r..'-.) 

. rnglnnn-ni , an*l Other Il. , ni5 
n<.irui.iUv 'l)u»n <in (he prohl jnrt 
sc-.wi*. Ki-.liul.-rt an- all .'X-xpiional nr 
nmi-n-i.iirnn- - ii*tun '*(, I, as Inr v-i.impt- 
i-jBjrai pruiiis. iiiik-w Hie lacor anse in 
tin- nrltnarv iralisacliAn of bu^uivst 
% 8. — i, orta in companies. in.Iutrns 
"h.-iJkii 1 naiifc.'.. rl. sco uni *ious-?s 

icsuraoi.i* au *1 fJii opine companies arc 
ciiTTpii-C /com d!«loiit)4 :He rull 

cseliM'.-s adjutriD-.-its n;]at:iu :o orc'-ious 

(j.|. 3 *1,-? n.;i pr.*K- a.T^ruidi cu 

••nui'V >'a]>r.pj ji i*. r (n— 

5— ‘.Irnnni. n'-. r. ii . 

- — III rrn-r ..Dar^' s— wncina n,n.l im;- 
ri,--xai>. .•)..., and PruJ.-r, n-.. di.-d-a-J' 

C*t.*. ? :^-*t'n)’Ti -_v. ;oiaf nex capital 7r. : :n ... rp-at at del nxed 

*■.(- ~ - JManoUrs suev *s 

..< 1 * *YaU. — - lus 

«a*»H--s - - 

fr-x-i-jns tnr s 
pensions lurid; 

VaoJvPl annual 


*. v ,ara... 


■ Jj:n‘i Hv! 

! Out octor*. d.-dii, i-na laspiion orui i stuns 
.,nil min.,rn» *nt..r-s»s |n in..- .j«* m 
[(.inks im :,.nr>- h. 'hn-. n h*. .. jw: 
u( uona1is..-l,*suri! i ...... innancii; inn,. 


Col 1 ' Prc-t t x F.-.*llts rhjl l . (■■ j 

'.ay pr*,|iis .if.-.-r .,11 *.n n ru4S mcludiiu- ■ , “ , . ... 

debenrurt- an*i fun im.*r**si hut h-for. ■ - l1r , ^ .IJn- . .,p r ,1 

SSfiS? , “ a:,nn - ,nJ rn,nun, V j Ihv'ciuat.'.l .M.^1 ir.l.|s 

m> .'rests l 0 _,. r a rcar . A , rjJ „ u . ,. n: fc .. Siurr0 ^ , 

C*.| I tniiiH all mm'*rj:c ta.rat'on ; oi cnrtparL e.i ^-gu.iy -.iR)i,u.t olus dear;. ! L'-J 
including Dnmimcn. and Korcicn i >-laiinn hit irn<l'~V dr. .d,*iuis r the r'- n. . .|- >.• : 
lubdi'ui aid filiurc omv:sioi, 9 b>i( * ci'.*.d rn-ihn .1 of coiaruic.a Ih.t r-aur.-. j~ i rr 

r ;■< 

ni.u . 1 .- 

•*v ' .■ ...s 

,«■)( less currtit’ ] 
u« erdnlu. 

;,f. and d's.‘)UH* 

:..ur» to oai,:*.* 

nvl rvtari . 

: j* a ^.-L-s-ntaa- | 
in iltlii-iuvi 

tic: *.■> .i *,i 

a*. -- ■ 

•.•an-ss. diisviuti I June 5 — fi 

■’* - a . -a are arrive-: 

• ’ *.: - urr> n» iwaiiiu.-s ] 

•'•*~: ...rrvttr asjcU- 

May no— :U 

51 JV "1 

May 31 

May " 1 — .Tunc - .. 1 — - 

I i pf, ^ CS EEL>: The Future for j revenue which, with tighter con- 

Juncl Keniinston Close Hotel 

Trading and Investment Opportunities in 
4 M I? Ul r?nIhi'-i b n lir L . . _ King Street, Manchester 

Assoc. Cymbi.sio Internationale torg. of foreign 

exchange dealers j: 20th InL Congress — address - 
by Pres, or Deutsche Bundesbank on current 
aspects or exchange rate policy. Munich 

IPC Business Press: Commercial Motor’s Vehicle 

Recovery Conf. w-ic Hants 

British Association Tor Commercial and Industrial ^ 

Education: Interpersonal Skills 
Cvnln* for Educ. in International Manaucmenf- 
Thc Senior Executive’s Opportuntics for 

Univ. of Pennsylvania: Management hy Ohiectivo* 

— Fact versus Fiction 

British and European Direct Investment 
Chances in the United States 
First Printed Circuit Worid Convention 

June 1- 

June 2 — I .. 
June 4 — & .. 
June 4 — ll . 


Sackviile Hotel, Hove- 


Hilton Hotel. London W.I 

June o — * 
■iucu 5 — s 

International Professional Security Associatinn* 
12th Annual Conference 

Hilton Hotel. London W.I 
Cafe Royal, London W.I 

Wembley Conf. Centre 

mg, would reduce the public 
sector . borrowing. - requirement 
from the forecast £8J5bn- to 
nearer £7bn. . 

The forecasts are In sharp con- 
trast to the worries expressed by 
other City commentators that ihe 
Government . canid exceed, its 
expected borrowing requirement 
and have increasing trouble in 
the financial markets as a result 
Charterhouse, .is also 1. fairly 
optimistic about the balance of 
payments. - Anxieties about a 
massive -rise in. imports of kanu- 
actured , goods later this yehr 
might be exaggerated in. terms of 
tbe overall balance of payments 
since imports of both oil and 
food were on a level trend, the 
group says, - 

•*••' • •<» *v . - 
t * * < »v 

The great benefit of being based in Milton Keynes 
is that almost everywhere is nearer. 

The Ml runs right alongside. The A5 runs right 
through the middle. 

Londonis about anhour’s drive one way. Birming- 
ham is about an hour’s drive the other way. " 

Which gives you the South East, the South Coast 
and the South West within a day’s reach on one hand. 

And on the other, East Anglia, Wales, the Midlands 
and much of the North. 

In terms of population and industry, that’s a very 
large slice, of the U.K. 

Not that the benefits stop at the coast, of course. 

Sailing from Felixstowe, for example, a truck can 
l reach many parts of Europe within 36 hours of leaving 
i home. 

ft When the 'spy in the cab’ puts in its inevitable app- 

Fearance, we will be even better placed. 

Now all that goes a long way to explaining what 
businessmen see in Milton Keynes: areal reduction 
in transport costs. 

But not the whole way. 

We have factories and warehouses and offices in a 
whole range of sizes ready and waiting to move into. 

And houses ready and waiting, for sale or rent. 

\ And a unique combination of town and village, 
industry and countryside, highways and byways. 

- A ^ 4 We've moved to Milton Keynes” means 

just as much to people as it does to trucks. 


Fhiandal Thw s Monday May' 22 1978 

r % 


Times ftcraffay fifty 22 59^ 




Deep freeze works efficiently 

Proteus, lie smallest, is a 
complete computer system DEMONSTRATION' facilities fur ins. and deHashins projects. 

desist by BOC's Australian 
* Common wealth ln- 
tascs l Ply). 

Jvorfc at Derby has 


Simple way 
to bar 
the cold 

much a> 50 jvr ct*«L h> 
fll , n ,o.,n, 

heated air Uireusli . , , 

.... .iviuad window anil tluui 

minis look 

— . — — - opera nuns. Equip- 

bytes Or usable storage. Proteus potential operators haw low meat was developed in conjunc- treated 

comes packaged with over a temperatures can bo used in tion with Newell Dunford, ally, 

megabyte of direct access storage scrap reclamation, freeze grind- Mlstertan, Yorks on the basis of Usino 

on (loppy discs. Also included are tunnel 

GAMMA rnnimiter Products the a 1J , lil L e b -‘ 40 character Bur- method 

S. Sheet cut precisely ass 

y town that tyres, elec- citai j s ihe name which able atul c:u h is complete 

cable and tin cans can be S ^ equipment neee»ary k 

i efficiently and economic has been . icn j siu ic e ;| huh .juai.ty fojm. 



InstaSeal auilalijo in 

Mrvele : notary -pressure ed ««n- 

iaim-r, rang in 4 in *u* from 1 in 
50 !b. Ail emit. Tliier* are ulsI'Os- 
complete with 

j dts- 





Rlpoo Road, MVortj 

meisn T*)ex57SSQ 

complete She pilot scale- plant 
screw, with swing hammer pulveriser 

component ~urcLhane front dis- P c,, - Se . . , , 

ihe pensing system, for :» variety of The material, when dispensed foam has a ttaftiiv « 

uic ^ .. * u.. nozzle. i< fully | U ,i io four yniia«l> p«. r 

Imiinjling the need f»i„r. whereas i at exes and 
,'itck on ihe ixiri of cone* have a den-iiy u [ 

js to tiie exact pounds per cubic font The fcj'm 

range of micro-based systems P^,. cona over i3 ~ pnnt P° sl ‘ POLYESTER photographic film, width with a lead — — . ....... - - . 

under a family name — Olympic. a ." aluminium lilho plate, rubber distance from the datum con- to ^ragmeia the frozen ntateriais- 

Three complete packaged Triton combines a 3.T5 Mega- sheet up to Jth inch tbick, tinuously monitored by an Patents have been applied for ...... buildin-* site 

systems make up the Olympic floppy disc subsystem with abrasive paper, all varieties of optical encoder and digitally dis- on the use the tunnel as a con- insulated koines mcoudU for «- e (iff , n . ho! ween the \lU- Prudiu-i 

family: two new offerings. Triton the LSI-Il processor, a 180 paper and card and even thin played. ‘ nnuous deffiasbing machine, re- about 30 per cent, of the loatfon Another difference between me mu 

and Poseidon, and the recently character per second printer and 

announced Proteus portable at least one high resolution . _ 

system. visual display unit into a com- Series 400 cutting table offered wheel on a traverse* is brought casungs. r 

\ll three members are avail- P act s y ste ni package. by W. E. Walker of Saffron down by hand and then clamped A freeze grind unit, also 

able in commercial and scientiic Poseidon has 20m. byte storage PneumaticaUy for the cut to- be ^8 SE 

^ j 

iwi paper ana cara ana even min piayea. imuuu» uwajumy w ... p r .,t. 

and steel sheet can be cut to -an The hinged beam carrying the moving th* trim from rubber, a homes heating system This product and conventional ~-'P. LJ* , 1 s / r, . l . t !«i ,a ' 1 *‘ r ‘ m 
ition accuracy of 055 mm using the longitudinal cutter ia cutting plastic an^ zinc mouldings or figure can be reduced by as and joint niters « iU oiaMi). Lmn .t-a* 

and Service^, 



developing automated control minicomputer systems, 
systems and large companies Gamma at Broad wav House, 
implementing distributed com- 7/9 Shutc End Wokingham, 
puling networks. Berks. RGll 1BH. 0734 7S4WI. 

Machine plant in Dublin 

AMDAHL'S next step in In addition to Ireland, 
establishing a major and growing Amdahl's European operations 

GTssi- 0 E ;x^. s ss r *** RELATIVE 

chairman Gene Amdahl ««w»ni bases in the UI\. France . 



Fast tester 
of circuits 

newcomer to 


gra ranted 

used to exercise ine unit nnaer circuit aesenpuon in taoie sunn. «■?"= ln wit*. a nhvsical 

test according to its normal func- Comppnents. ; interconnections. ho« k detection systems— costtng opportun it to P > 

tion, and test it for expected out- values and tolerances are up to £12.000 each-will be stock cn*.ck. 

puts. entered from a keyboard and the installed this year, the^ largest 

It is also possible to use pro- software 
the grams generated automatically that properlj 

In both modes of system when 
Books are treated with a dis- an attempt is made to take .in 

dured e S few C ?e^s ago 61-6 EStf^wSEn^’ ^'bo’ok^f^ued s^en'^ott^d^to^ 1 U, “n 

if U frUh P ruHi;?v^M S smaJl British company which is development in*a few hours from only used for this purpose and Kingdom, a major supplier, able unit, nre ablc io _iurn_oR_ ^ v ^;^^^ p ^! lc ir f °L.^ d . ! ! n , 5 : 

This Irish facility will supply machine Installations in Rome r ,o ff r dKiai circu t test basic dreuit date 
ih. iTiii-nn^an mopta* ,.-HK Paris, the total number of Iqulpment in the i^OOO^o^O.^O ColSa is^f 

Amdahl systems up and running ran g e as opposed to the £25.000 Slough SL1 6JA. 
in turope (o date is tenj £100 000 bracket often 
carried out in the Dublin suburb significant numbers of orders ar 5 encountered with the majors in 
of Gbsnerin. using newly built also in the course of delivery fjp 0 field 

ran tie removed to provide more believe, ihet book loses could 2L«£?“.S«2.» JSSS4 T’S Wd dowMome “libSriS S 


but temporary premises. 

After or in late stages of negotiation.' ^The* company's latest product 
one year Amdahl expect to be Amdahl (UK). Viking House. is drived by % microprocessor 

.uSsK”” 1 ° a ' 1, KmUS ' 0 *- -nd «” l» u««l "renew 



An LSI 11 drives the 

key pad. 

Apart from the print out. a 
nine-inch CRT display presents 

of peripherals, mc,udin| VDU. SCiOHIM SSfft - 

punch P or n |Joppy f ^Usc5 P Memory DIGITAL, analogue aad hjbrid adiuEtib1 ' com - 

modules are available in both pnnted board assemblies can ail * 

random access and read-only be dealt with by the. model 2270 ■*» vacuum controlled bed of 

BARELY THREE weeks after the and production control svstem form for tho stora 8 e of tesl pro- tester frora GenRad. solder nails fixture makes contacts with 

__ . , _ . - 1 iiMmr >inH ci'ct/i m cnFfumra 

Bath Road, space during testing. Any inter- be between £15-£25m a year. He that no obvious change in the laid 

2S6 4616. action with the svstera during has 70 of SM's book detection appearance of the book is ap- ask \he P** 5 *® 80 through 

testing Is carried out on > small syslems at »ork in public and £“?">■ The ebongo i. ■ an «>«- Sjl* ‘ Li f , £? fi "« 

Redifon makes its mark 

rams and system software. shorts, open circuits, wrong nr ^ board, with vacuum equip* 

„ v . „ ... Testing can be performed on missing or out of tolerance parts ment built in. TIp tem p cra tures of Antes 40 

u .. . have an R100 for collection and 11 P to -00 bi-directional test lines all being indentifled in a single More from the company at an ,i so w-iit snldprinu iron* -ran 

company has announced sales "^VoceSing o7data foMnvcn- j n thestandard system, expand- pass and described in plain Bourne End. Bucks <06253 

^ —in. including -5 per ir,rv i-ontrol and oroductinn con- a ble in blocks of ten. English on a printer. 

tromc one which means that triggered off. the person is asked 

— - even if ihe reader should later politely if a book has been over 

on the same day or week of looked: in others hand baggage 
issue rerurn to the library that is searched— with the eo-opera- 
METAL WORKING book will not need to be handled tion of tbc borrower— but nn 

again by the library staff. This personal search of the individual 
is particularly important in is instigated, Prosecutions may 
educational environments where follow, but emphasis- 'Is. "made 
students frequently come and about the deterrent value of such 
go using study or reference lenient policies. 

-material while" carrying with More from 3M on 01-2S6 6044. 

official launch of the R-Range based on the R equipment, 
equipment from Redifon, the Synthesis at Pardubice is tn 

Gives exact 
solder heat 

266U 1. 

exceeding ijm. including ^a per i or y control and production con 
cent of orders from Czechoslo- trol in the manufacture of paints, 

vakia. plasties, explosives and drugs. " ’ 

Redifon. which claims to be At home, the first customer for 
as important to ihe UK com- an R100 is Hunting Group Com- 0 ELECTRONICS 

puting industry as ICL. and to puter Ventre, Thomaby. Cleve- - __ 

have received no Government land. The objective is to provide "BV" _ l*! ~ harmonic generation); then, transfnrmpr fbr thp 'u'v ^iionlv 

assistance at all. is playing a clean data for the main ICL JVGGDS Dl? SD1KGS OUl wiUlin nanoseconds a "hard a”d a circuit which controStte 

nmjor role in penetrating East machine in the service bureau. WUl damp " comes on *hich dis- bit temnerahire bv mean? of a 

European markets For up to the The Borough of Lewisham is TRANSIENT voltages in excess nanoseconds, preventing motor sipates major disturbances thermocouple in the top of the 

ckimt nntVi - . . . ' U 

selected value between 150 and 
420 degrees C using the TSCU 
soldering station put bn the 
market by the company. 

The unit, which also acts as a 
stand for the iron, contains 

minute data processing techno- to use R equipment to provide of 40.000 volts containing ener^ and contactor problems as well through a shunt discharge path, instrument's heatino element 
logy. clean data for a new IBM gies up to 16,000 joules can be protecting semiconductor UPS claims that the system, t . .. ° i« 

There is no doubt that users machine and Whitworth Electri- kept out of sensitive electronic devices. In addition.' the devices which is not subject to overload eu S!j element is 

“ivit JO I|W uuuui UUH UJU a Iiiaiiimc «“u iiunnv* tu ujluu- v>vvuvu*v ut » su auuiuun. me u&uvca niuvu 19 UUL hUUJCLL IU U VC 1 lUd L| CU'I til U . « + 

in this market area are prepared cal of Portsmouth will be doing equipment using solid state pro- prevent solid state logic circuits problems, can suppress virtually ne vo r 56 

to a long way in the appll- similar work with a Redifon lectors put on the market by frora accepting voltage spikes as all RF voltage spiking such as .Iff crosses zero voltage 
cation or new technology. For unit in support of an NCR Cen- Unity Power Systems of legitimate signals. that created by ballasted light- eumma “°S interference 

ry 75- Croydon. Two stage operation first of all ing circuits, delivering a verv copper bits are iron-coated 

More from Redifon Computers. The devices remove al! on- clears any low level voltage pure voltage sine wave to the a ? d are P‘ ated with nickel and 

instance. Bastro. the engineer- tury 75. 

ing centre which is part of the More from Redifon Computers. 

Czech Ostrava coal mines, is to Kelvin Way, 
have a real time, on-line slock 0293 31211. 

Crawley, Sussex, wanted surges and spikes from disturbances (a relatively protected equipment. 

chromium to prevent loss of bit 

EBRS 1078 . 

electrical systems within six gradual process that minimises ' More from 44 Wellesley Road, , ° ass : ? nd ,. bits are vhansed 

Croydon, Surrey (01-6S0 3666). film P | - v by sliding them off and 

on to tbc stainless steel shaft 
1*1 nmrp containing the heater The new 

IN DKltr bench unit measures 145 x 104 x 

_ _ .. . . . .. . w 142 mm and weighs 470 gms. 

9 Switches and indicator bghts More fron , . nlp „ 
with long life and low power con- tn S Artt^SL WaJ" 
sumption are available in the p.. ' nil |'h 
Diaiight series of iiluminated Pi>D,0Ulh ' Devou (0,5 “ 6 ‘ 3 " >• 
components distributed in the 



EBRS is the European Businessman Readership "CT1\]" A lVif^T A T TTI^ATh ^ 
Survey, jointly sponsored this time by Les Echos, v/XTlli X XI VXX-/k5 

Le Figaro, BerlingskeTidende, Handelsblatt, Vision EUROPE S- BUSINESS NEWSPAPER 
and the Financial Times. 

Now in its third edition, it has gained wide 
acceptance as the definitive research document on 
the reading habits of Europe's businessmen. And 
therefore as an essential basisfor effective 
media planning. 

For 1978, EBRS is now bigger: the sample size 
has been increased to 5,621 Allowing even tighter 
target audience definition. 

Its also broader the universe now covers 
180,000 senior businessmen in 14 European 
countries. While the questionnaire covers 
98 different publications. 

if you're planning a campaign to reach this large 
and vital European market EBRS 1978 is 
indispensable. For copies, complete and send the 
coupon on the right 



To: Financial Time?. Media Research Department 
Bracken House, 10 Cannon Street, London EC4P4EJy j 

Please send copies of the EBRS 1973 at £30 per j 

copy lUK addresses>/£32 per copy overseas (payable in ■ 

any foreign currency which is freely convertible into 
Sterling at current exchange rates;. 

Cheque enclosed for. 

(made payable to Financial Times). 





0nV;e:The nn?n :i^l i.mesUd- 
Brac-'-n H vj-e 10 CsnnnSt'^!. London EC4P45tf 
| F egu reed in England. No.I27£.SO. 


U.K. by Pye Eleclro-De vices of 
Newmarket (0638 5161). 

Aids shaping 
of metals 

9 Intel has announced a "second 
generation " 8k x 1 bit dynamic 
random access memory- The two 
layer poiysiiicon process used 

gives low-power consumption, . ... . . 

freedom from line noise and the v c , ut *i D 8 grinding 

ability to operate in latched or “ Ult * .wiled Crownsol S27 has 
unlatched output mode. (0865 * ,een introduced by W. F. Small- 
771431.) ma n an ^ Son of Great Bridge 

Street, West Midlands. 

9 New memories are also The fluid forms a semi- 
aunounced by General Instru- translucent emulsion in water 
ment Microelectronics— 32k read and is claimed to be particularly 
only types with 450 and 350 suitable for arduous metal 
nanosecond access times respec- cutting operations. In different 
tively, making them directly com- dilutions the oil is suitable for 
patible with ail popular many grinding, metal cuttin 
microprocessor families. (01-439 and rolling applications. 

1 S91-) Also just put on the market is 

9 Continuous wave laser diodes ^ drawing and metal- 

complete with optical fibre pig- iihrimfnts f °nf I, ^ te ? - by 

tails from which 500 microwatts S n « b n? rhSI Ex ‘* lsio t r 
are emitted at 820 mn can be SSL 1 , 1 !* 8 * 6 w oc f^ 
supplied by Walmore Electronics. West Midlands, 

Maker is Laser Diode Corpora- . , , 

lion. (01-836 1228 ) there is no need for pbosphat- 

ing. says the company, and 
9 A tiny motor gearhead from application involves only a single 
Trident Engineering is small cold dip. The product is 
enough to be mounted directly described as a super-fatted 
on a printed board for turning aqueous based material which 
small potentiometers and can also results in a good, bright finished 
be used in servo products and surface, especially when tube 
tape drives. (0734 736444.) drawing. 


* New leasehold factories and serviced sites 
are ready NOW. 

★ Government grantst are available and 
substantial rent concessions may apply. 

★ New motorways, fasttrunk roads. High 
Speed Trains and modern docks link you 
with all yoursuppliers and markets. 

★ New Town housing availability. 

Cwmbran is onf of Britain's most suv-essful 
industrial development.; - litt> more UianUlioar* 

from London by Ml or 11 hours by Hufh Speed Twin 
and It hours fcc-m BLrminuliam by- rat] , jr motorw.iy. 
Cwmbran Development Corporation ha.- a) ready 

huUr and Jet more than 130 factories. and tu 
current but Ming- programme provides a wide , hcice 
of modern. Jeascliold industrial premises in I&78. 
Fully cerv iced, leasehold sluv; are also ava liable. 

e Jiave -15.00} people, excellent housing, .-tchuola' 
and amenities, tlmvins indu^rry, and u. splendid 

shopping centre - a maernet Coe the region. 

Get the facts about Industrial opportunities 
and G-ivernment grants at Cwmbran. Housing will 
oe provided for all workers in new industry, and 
"■' th 

Please write, phone wuw the coupon TODA Y. 

R.w. Hoaicu General Manager 
' Cwm,,mn C ^ nl ™ 


50.0t)0 people in the United Kingdom suffer from progressively 
para Using MULTIPLE SCLEROSIS— the cause and cure of 
which arc still unknown— HELP US BRING THEM RELIEF 

We need, your donation to enable us tfr continue our work 
sufferers and to continue our commitment to find the cause 

Please help — Send a donation today to: 

Room F.I, 

• Multiple Sclerosis Society of GLB. and N<I- 
4 Tachbrook Street, 

London SW1 1SJ 



Please vrnd bw imorcni ion about iBdtuli Jnl oppurtumdos. 






AUTOMATED FOUNDRY. Ready for production, 
box size 1850 x 900 x 700/300. Suitable for 
large tractor or similar castings. 

DRAWING MACHINE equipped with 3 speed 
200 hp drive, 2Q"horizonul draw blocks. 

22" vertical collecting block and 1000 lb 
spooler. ( Max. inlet 9 mm finishing down 
to 1.6 mm copper and aluminium). 

DRAWING MACHINE in excellent condition 
0/2000ft,/min. variable speed 10 hp per block 
( 1968). 

By F armer Norton (1972 )_ 

SUITING LINE 500 mm x 3 mm x 3 ton capacity. 


■ MILLS Ex. 6-50" wide razor blade strip 

and tube drawing plant — roll forming machines— 
dieting — flattening and cut-co-length lines— 
cold saws — presses — guillotines, etc. 

by Noble & Lund with batch control. 

1970 CUT-TO-LENGTH LlN&max. capacity 
1000 mm 2 mm x 7 tonne coil fully 
overhauled and in excellent condition. 

machine by Fanner Norton 27"— 29" — 31" 
diameter drawbacks. 

by A. R. M. Max. capacity 750 mm x 3 mm. 

with 22" dia. x 25 hp Drawbloeks. 


5j}OOft/Min. with spoolers by Marsha) Richards 

— pneumatic single blow. 

IJ00 mm wide. 

965 mm wide. 


6-ton capacity lattice jib. 

STRIP ROLLING LINE 10" x 8" rolls x 75 HP 
per roll stand. Complete with edging rolls, 
turks head flaking and fixed recoiler. air 
gauging, etc. Variable line speed 0/750ft./min. 
and 0/1500 ft./min. 

Thompson and Munroc. 


08893 3841 
or 08893 4633 

0902 42541/2/3 
Telex 336414 

0902 42541/2/3 
Telex 336414 
0902 4254J/2/3 
-Telex 3364(4 

BAR PEELER-4" CENTRLESS. Reconditoned 
BENDING ROLLS 8' x j 1 ’- Excellent. 

reconditioned, will turn and index to maker's 

PRESS. Bed 48 ' x 40" 200 spn. Double roll 
feed stroke 35 mm excellent condition. 

DEEP DRAWING PRESS. Condition as new. 

36 Stroke 8”. NEW COND. 

MACHINING CENTRE. Capacity 5ft x 4ft x 
3ft. 5 Axes continuous path 51 automatic tool 
changes. 5 tons main table load. Main motor 
27 hp. Had less than one year's use and in 
almost new condition. For sale at one third 
of new price. 

WICKMAN 2i 6SP AUTOMATICS 1961 and 1963. 

4,000 TON HYDRAULIC PRESS. Upstroke 
between columns 92“ x 52" daylight SI", 
stroke 30". 

i ’ and j" DSSD EXCELLENT 


Reconditioned . 

RFA 13. Tesr capability up to 20,000 hp at 450 
rpm. 640,000.00 ex works. 

0902 42541/2/3 
Telex 3364 M 

0902 42541/2/3 
Telex 336414 
0902 42541/2/3 
Telex 336414 

0902 42541/2/3 
Telex 336414 

0?02 42541/2/3 
Telex 336414 
0902 42541/2/3 
Telex 336414 
0902 42541/2/3 
Telex 336414 
0902 42541 '2;3 
Telex 336414 
0902 42541/2 '3 
Telex 336414 
0902 42541/2/3 
Telex 336414 
0902 42541/2/3 
Telex 336414 
0902 42541/2/3 
Telex 336414 

0902 4254 W2/3 
Telex 336414 

0902 42541/2/3 
Telex 336414 

01-928 3131 
Telex 261771 
01-928 3131 
Telex 261771 
01-928 3131 
Telex 261771 

01-928 3131 
Telex 261771 

01.928 3131 
Telex 26 1771 
01-928 3131 
Telex 261771 
01-928 3131 
Telex 261771 

01-928 3131 
Telex 261771 
01-928 3131 
Tdex 261771 

01.928 3131 
Telex 261771 
01-929 30' 
Telex 261771 
01-928 3131 
Telex 261771 
Burton 0" 
T rent 790331 
Telex 336108 



and tube drawing plant— roil forming machines ; _« 

— ilittinf! — flattening and cut>to-iength lines— j 0902 4254l^-/j 
cold sawi— prcvtc.— guillotines, etc. * Telex wM. 1 * 




^ v ,. * i 

• *’-'• .«/•"“ H ‘ * 





$K2: t >:*" 

F*>* ■ 





L w. — .ti 






>. v-.-V. 

.:.***? ■ 

The New Philips INFORMA y . 

A low-cost, high-performance Accounting Computer for companies 
starting out in Data Processing. The INFORMA is designed to make life 
easy for its owner and its operator, and it comes with the hacking of 
Philips’ experience of 75, 000 different installations behind it. Philips keep 
the costs down in three ways-Iow purchase price, low software costs (you 
have 200 proven library programs to choose frcp^nd low running costs, 
with no specialist staff required. ' 5 

If you are thinking about getting your first computer.the INFORMA 
talks your language, \ 

_ S 23* 

imme me s^’z; 
■ .:*~«dav£32&»mi! 

***.*-. : 

’>>' •••• - •-vr- 

[.A ", . ■ » ,■*} 

•V • O <*• > * . - . ’ * 

The New Philips P312 

This model brings the benefits of Flexible Disk Memory to the Office 
Computer Market: at anew, low cost, the P312 offers all the capacity, 
power and speed of much larger systems. The P312 is designed for the 
company which is finding its present system too slow and too limited to 
keep pace with growth: it’s the ideal way fora small or medium-sized firm 
to gain the benefits of the latest computer technology without spending 
a fortune. 1 • 

If you need fast, powerful processing for accounts and business 
records, you'll find the FJ12 talks your language. 


The New Philips P330 

With the P330, Europe’s largest electronics company sets a new 
standard of price and performance for business computers. The P330 has 
high capacity memory with integral Flexible Disks, a fast-output printing 
unit, a display screen to access files and guide the operator, a sophisticated 
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accounts fast, accurately and intelligently. With a P330, you’ll find that you 
accounting problems quietly disappear-and the information you need for 
management decisions will be there when you want it, right before 
your eyes. 

If you need a computer as a management tool, the P330 talks 
your language. 


V i v? 

The Philips INFORMA The Philips P320 

•"jkjt. . 

The Philips P312 

The Philips P410OCS 


The Philips P330 

The Philips P4I0 SBC 

The Philips PTS 6000 


philips' customer support system is recognised as setting standards 
for the entire industry. A major software investment programme provides 
a growing library of low-cost software options: a highly-trained team of 
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smoothly; Philips’ Training School provides thorough courses for constantly on the top line. 

customers' staff in all aspects of business computing; and an Engineering If this is the kind of service you expect from a computer supplier. 

Network, currently looking after some 2,7()0 installations throughout the we irivite you to contact us for an initial discussion. Vou’lLfmd that Philij 

country, provides a maintenance service which keeps your installation people talk your language. 









5th June 



14th June 

.• 061-7989191 

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021-550 8171 


7th June 



16th June 



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0206 5115 


13th June 


! London Marylebone 


01-836 4360 

Plus a special two-day exhibition at Arundel Great Court, London WC2, on the 27th and 2Sth June. Ring 01-836 4360. 

iups # < 

Philips Data Systems’ 
specially-chartered train will t 
he bringing a complete A- 
ex hibition of the range to 
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tu £70,000, you are invited to 
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Position _ 
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phiups Data 
#T\ Systems 


Lynne Hood 

Philips Data Systems 

Elektra House Bergholt Road 
Colchester Essex 
Tel: 0206 5115 


Financial Times Monday May 22 1975 


£7m Middle East award 

Jobs for 

A CONTRACT for a new sewer- 
ace system in Abu Dhabi, 
principal city of the United 
Arab Emirates. has been 
awarded to Bovis International 
(Civil Engineering), at a value 
of £7m. Work includes laying 
6 km of mink sewer. 6 km of 
subsidiary sewer, construction of 
two pumping stations and 
positioning of ISO manholes. Due 
for completion in IS months, the 
whole works are to be finished 
in an area which requires 
extensive de- watering before 
construction can begin. 

Wimpey at 
home and 

The Edinburgh office of George 
Wimpey has received a contract 
valued at about £2.3m- for 209 
houses on the Bowhouse Site in 
Alloa. Clackmannanshire. The 
local authority in collaboration 
with the Scottish Development 
Department decreed demolition 
in 1976 and the area will emerge 
as a completely new develop- 
ment. The shells of the houses 
will be built in the company’s 
No-Fines technique of construc- 
tion. while three-shop units, with 
a two-apartment Hat over them, 
will be built in brick. 

A cmnpany jointly owned by 
the Sounding Co. of Tehran and 
Wimpey Laboratories. Wimpey 
Laboratories Iran SSK. has been 
awarded a £Jm. sub-contract for 
'exploratory boreholes and in- 
strumentation works on the Lar 
Dam and Tunnels Project. Iran. 
The main contractor is Kuma- 
gaigumi Co. of Japan. 

Work on the scheme will com- 
mence shortly. Comprising two 
main blocks divided into smaller 
self-contained units with offices 
on the first floor making a total 
of nine lettable units, the struc- 
ture will be of pre-cast concrete 
columns, steel roof trusses with 
brickwork and protected metal 


to be built 

for Glaxo 

A CONTRACT in excess of £5.4ra 
has gone to the Witham. Essex 
Region. c>f George Wimpey from 
the Norwich Union Insurance 
Group for a mixed commercial 
and residential complex, called 
the Mall. Heathway, Dagenham. 
The commercial development, 
financed by Norwich Union, is on 
(wo levels and comprises a super- 
market together with 31 shops 
fronting on in a covered mall 
above which are 2. 3. 4 and 7- 
fitorey dwellings. These, together 
with a car park on six split levels 
are being funded by the London 
Borough of Barking. 


for Sunley 

100.000 sq ft warehouse and 
office development at Silverdale 
Road. Hayes. Middlesex, for 
Ancroft Investments, a subsidiary 
of Bernard Sunley Investment 
Trust, is the subject of a £900.000 
or more contract awarded to 
Bernard Sunley and Sons. 

DEMOLITION AND rebuilding 
of the interior of a building at 
Greenford. Middlesex, for Glaxo 
Laboratories, will cost £1.35m. 
under a contract awarded to Cos- 
tain Construction. 

Twelve new six-man labora- 
tories and ancillary accommoda- 
tion will be provided following 
the rebuilding of the ground and 
first floors in blockwork rendered 
both sides and covered with a 
satin vinyl finish. The work also 
includes the construction of a 
new plant room adjacent to the 
existing building, improvements 
and addition*: to the mechanical 
and electrical engineering instal- 
lations and provision of air con- 

CONTRACTS from TCI and T. 
Wall and Sons loin l Una £2.6ra 
have been awarded to John 
Laing Construction. 

The compaoy's Cumbria 
region will build a £l.t>m factory 
for the manufacture of ICI's 
PropaJfilm polypropylene film for 
the packing marker, jt Garrocb 
Loaning. Drungans. Dumfries. 
This will comprise a seven 
storey reinforced concrete 
structure with vertical patent 
metal cladding and l'*‘u single 
storey sleel framed mei-il-clad 

At T. Wall and Sons’ factory 
at the Friary. AlIur. West 
London, production '-'ill con- 
tinue while Laing demolishes 
the roof and builds u second 
storey of rein fori ed concrete 
frame clad in profiled 
aluminium sheeting, m be fitted 
out with specialist finishings. 
Work on the modernisation of 
the ice cream factory •.-■ill start 
next month and is scheduled for 
completion by next summer. 

Dam in 


£2m awards 

to B. B. Kirk 

Clough Smith in Africa 

AN AWARD for a com- 
prehensive contract for electrical 
engineering works covering 
design, supply and installation of 
switchgear, transformers, cabling 
and 50 km nf 275 kV trans- 
mission line, has gone to Clough 
Smith, of Crawley, Sussex, at a 
value or £4]in. 

The company will participate 
in a £55 m irrigation and hydro- 
electric scheme involving the 
construction of a dam. 2.200 
metres Ions by 55 metres high. 

near Masinea, about 1.500 km 
north-east of Nairobi. Kenya. A 
40 M W hydro-electric power 
station will be built on the site 
and the dam will create a 350b n- 
gallon reservoir 45 km long and 
120 square km in area. 

The 1,000 km long Tana is 
Kenya's largest river, whose 
basin supports 20 per cent of 
the country's population, pro- 
vides a major portion of its 
agricultural potential, and the 
only substantial source of hydro- 
electric power generation. 

£3m Holst 
cracker job 

PEMBROKE Cracking Company 
reports that the main contractor 
for the construction of its 
new fluid catalytic cracking unit 
■ — Snamprogetti — has awarded to 
Norwest Holst Western of Car- 
diff sub-contracts in the region 
of £3m for offsite civil work. 

These consist primarily of ex- 
cavation. grading and construc- 
tion of . such items as em- 
bankments, roads, tank founda- 
tions. environmental screen walls 
and trenching for utilities sup- 

of Skipton. a member of the 
Charles Hill of Bristol Group, has 
been awarded contracts totalling 
£2m.. which include civil en- 
gineering work for the Severn 
Trent .Water Authority. Lower 
Trent Division at Ma Kersey 
Thorpe Sewerage Work*, and a 
new reservoir for Chester Water- 
works Company at Guilden 
Sutton Lane. Chester. 

Building works included in the 
contract comprise extensions to 
existing works for JCI Plastics 
Division at Darwen. Lancashire; 
30 old peoples' flats and com- 
munal facilities provided by- 
Craven District Council. Skipton, 
Yorkshire; new offices and car 
parking at Dewsbury, Yorkshire, 
for Wellman Mechanical 
Engineering, and a supermarket 
for the Co-operative Retail 
Services at Royston, Bam*ley. 


the sinews 

of bdustry 


pftttst concrete 


- THairwRd. Long G-wxfcjn. 

.Ay!osbury, Bucks. HfngSBR 

Tel: LoogCrer,doo20S481. 

f»»r llie As;»r.*«* rcm.iius Dam. in 
Uypru-. i'* !•> be undertaken as 
■a" juiot venture h> two Gj prim 
contractors. Joann. m and 
Parnskt-v.iuK-.- t-t A- Pi. and 
Mcdvcm. 11 "j> awarded by the 
Water L»r\ ciopment Department 
»f the r> of A grim Rural 
and Resources, in 

. The dam. designed by British 
consulting engineers. Sir »M. 
MacDonald and Partners of 
Cambridge, will harness the 
water nf the Xempniamos river, 
prmiding water storage for the 
Paphos irrigation Projcit. for 
which construction of the main 
canal and other works is aiready 
well advanced. 

A zoned structure with an 
impervious centra] core, the dam 
will create :i reservoir of 50m 
cubic metres capacity with a 
crest length of 620 metres and a 
maximum height of 52 metres 
above river bed level. 

This clock tower built in 1968 
in Dubai has been suffering 
from the elements. Construc- 
tion is of reinforced concrete 
and the wind blowing water 
from the fountain in the centre 
under the clock caused satura- 
tion of the concrete and rusting 
of the reinforcing steel. 
Australian contractor AST 
International has been carrying 
out the repair work with the 
aid of Kwfkstage scaffolding 
supplied by Kwikform which is 
a Costain Group company. 

Busy in 


W. AND C. FRENCH ( Malawi), 
a member of the French Kier 
Group which has been operating 
continuously in Malawi since 
1964. has been awarded a con- 
tract valued at £2.7m. for work 
in connection with the Blautyre 
water scheme. The company 
already has awards in Malawi 
for the construction of the 
Reserve Bank Building, costing 
£4m. a shop and office complex, 
nurses home and a tobacco fac- 

Gainsborough had not long been hung 
whenTrollope and Colls came into the picture. 

Trollope & Colls 

City Builders . ’ 
for 200 years 

in Bahrain 

PLANS FOR the agricultural 
development of Bahrain are to 
be drawn up on behalf of the 
Ministry of Commerce and Agri- 
culture by Hunting Technical 

Value of the contract is 
£168.000 and it is heing carried 
out concurrently with a detailed 
study of the soil and ground- 
water resources of the island 
which is being undertaken by 
Groundwater Development Con- 
sultants I International) at a cost 
of £l-2m. 

Hunting Technical Services is 
a division nf Hunting Surveys 
and Consultants. Groundwater 
Development Consultants (Inter- 
national) is jointly owned bv 
Hunting Technical Services and 
Sir M. MacDonald and Partners. 


■ .* 

for Saudi 


search has produced a Construc- 
tion Industry Directory based on 
its market research and consul- 
tancy efforts in Saudi Arabia. 

Intended as an aid to com- 
panies interested in selling their 
products or services in the Saudi 
market, by providing details of 
potential customers, agents, joint 
venture partners, etc., the publi- 
cation is available for U.S.S28.00 
or equivalent (with order) in- 
clusive of air mail postage from 
Eurocanadian at SOI, York Mills 
Road. Suite 201, Don Mills, 
Toronto, Ontario M3B 1X7, 

The Bank of Credit & Commerce International in Abu 
Dhabi. Biii^t by Bernard Sunley and Sons the 15-storcy 
bloek is clad in glass. Another glass-clad building for the 
same bank is being built by Sunley in Dubai, on the Dcira 
side of the Dubai creek. Architects for both buildings are 
Fitzroy Robinson and Partners. 

New floor at night 

drink, tobacco, pharmaceutical, 
dairy, meat and chemical pro- 
ducts, may welcome the speed 
of PML epoxy floor screed which 
the maker. Protective Materials, 
says will harden enough for light 
traffic in about 12 hours. 

Best adhesion to concrete sub- 
floors is obtained by laying the 
epoxy screed over a coating of 
still wet PLM screed primer, says 
the company, and where it will 
sustain heavy traffic, a 48-hour 
hardening period is advised. 

More on 01-397 3344. 

Fixes the tiles 

Bath to back 

THE BATHROOM has gone out- 
side Jn Leicester; where Banbury 
buildings demonstrated how its 
purpose designed modular unit 
built from a pre-cast stem, was 
added , to the rear of a house at 
the company’s Home improve- 
ment Centre in the heart of a 
depressed area of the city. 

Fast and simple to erect, and 
built to blend with nh existing 
house, the unit created a back- 
addition bathroom which, says 
the company, could be used in 
slum face-lift programmes with 
a saving of np to-25 per cent .of 
the cost against . traditional 
building methods. 

The unit is available in two 
sizes: the 30 ft by 6 ft will 
accommodate a 5 ft bath, and 
the 9 ft x 7’ EL one will take a 
6 ft bath. Two units can be used 
together for use as ‘ back to 
back ’ bathrooms on -neighbour- 
ing properties. 

A CERAMIC tile adhesive for 
fixing mosaics and tiles to verti- 
cal or horizontal surfaces, in- 
doors and out. I 9 said to be non- 
flammable. ready - to use. and 

In off-white,' thixotropic, the 
waterhased. paste from Unibond 
contains -' a, -fungicide to act 
against mould growth and 

is said not to cause ‘flash 
fires” when stored or used 
near naked lights and other heat 
sources. There is only a slight 
and harmless odour emitted 
says the company, when the 
adhesive is drying. Available 
ready-mixed for instant applica- 
tion, the fixer can be applied also 
as a waterproof grout. 

More bn 0276 63135. 


New lilt 


LATER this year a new British 
Standard is to be published 
covering the installation of lifts 
in buildings. 

According to Mr. H. A. W. 
Pettinger, of the Otis Elevator 
Company in London, the stan- 
dard will, for Lhe Hft purchaser, 
mean that quotations will come 
from any lift maker in Europe 
to the same specification. This - 
should mean a higher degree of 
standardisation and -resulting in 
tower overall costs and tin- 
proved safety. 

The new standard is BS 5655. 
and it will replace the old BS 
2t»55. Although most of the 
changes are of a detailed nature, 
some involve different 
approaches: for example, lift 
safety gear will in future bo the 
subject of .type testing under 
conditions oF free fall with full 
contract load. 

More on 01-735 9131. 

• M. Harrison and Co (Leeds) 
has received three contracts 
totalling £274,000: for an office 
block and warehouse to be built 
for FarneD-EitttroDics at Leeds, 
warehouses - and offices for 
Hanover St. George Estates at 
Rugby and -the extension anil 
rebuilding. of fire-damaged 
premises of Doyle and Fiockton. 
printers in Leeds. ’ 

• Northamptonshire County 

Council has awarded a contract 
worth £253:182. to Robert 
Marriott (French Kier Group) 
for alterations and extensions to 
the Prince ‘ William Upper 
School -at Oundle, Nurthampon- 
5 hire. - 

• T. M.- Simpson bas contracts 
fur plumbing and heatina works 
on houses at Housr-hiilwond 
value £626,847. and at Blochuirn 
at £194,741. both for Glas»nwr 
District Council. Anglo Gaelic 
Construction has received con- 
tracts valued at £3$S.0no Jn H 
£369,720 for Anchor Housing 

Association and Durham Countv 
Council, respectively. Both com- 
panies are in the London and 
Northern Group. 

? •ESSO-OOO order for air 
handling equipment for the new 
General Infirmary at Leeds. 
) orkshire. has been awarded to 
Matthews and Yales. ■ 

O Latest contracts for the Bowev 
'■roup include hnu^mg in Simp- 
son Street. Cull crcoats. Tyne and 
Wear i£5fi,.0nn>. rehabilitation 
of properties m the Lower 
Heaton area of Newcastle upon 
Tjne (£305.000) and modem isn- 
t|°n of dwellings in Toft 
CrescenL Murion. for Easing! un 
District Council 1 £252.000). 

• Fairclough Building. North 
™. P ,vl «»n. is to build six 
units for nursery factories, sim- 

h h L C ,,r ? ,r r ,inn * W, *'| just a 
handful i»r employees or j m ti a H»’ 

™ business, -it » 

for Gateshead 
Metropolitan Council al Slavdom 


He already has die biggest convention facility 
in Brussels. Why is he building more? 

Brussels-Sheraton Hotel 

j*ACEBOG 1ER3 WOO BRUSSELS •XEL;2i9 34 00*lEL£X;2t>S87 

He cant say no. Call him: 2193400. 

c is Giovanni Caronia, „Mr. Conven- 
in'* at our Brussels-Sheraton Hotel, 
e can easily handle 2 to 1200 people 
a meeting, up to 800 at any kind of 
i eating affair. Or at a ball - he has the 
ggest ballroom in Brussels, 
nd after the ball is over. Hie chances 
e small that youll have to move the 
icsts to other hotels. He has hundreds 

ofbig. quiet, friendly rooms upstairs. Plus 
a huge garage down below so that the 
cars don't even have to be parked outside. 
The most convention space in town is 
still not enough for Mr. G He’s 
standing in 600 sq. metres of further 
space we’re building for him on the 
30lh floor. Ready in the Autumn. But 
don't wait until then to give him a caii r 

People make holds. 


heuga caipet tiles: good business sense. 

U.k. Rd. heugs hous^l Osticrd Road Ayfesfaffy Bucks. HPI3 3EP 3 

" i nere is a misunderstanding aoroaa m tne 
land that heuga carpet tiles, though admirable, 
are merely afunctional substitute for 
conventional carpet 

“Pshaw! A functional substitute, indeed. 

Ifs high time I said something. 

There are, don’t you know; 1 7 different 
qualities of heuga carpet tile, 

“One might say that whatever quality of 
conventional carpet you admire, heuga can 
match it And that includes several qualities to 
which I make my personal contribution. 

nn short, there are tough, hardwearing 
heuga tiles. And there are luxurious hard- 
wearing heuga tiles. 

“But whether tough or luxurious, all heuga 
tiles are made to double the wear of 
conventional carpet 

“Let me explain: in your office, not much 
more than 40% of the caipet gets well and truly 
wom.lndeed, carpet behind doors, alongside 
. skirting, under furniture, isn't used at all. 

“But heuga carpet tiles can be picked up and 
moved round to even out the usage, and inhibit 

depressingly ugly wear paths. 

"If you damage a single tile, then you replace 
a single tile, and not an entire carpet 

"With heuga, you need no ejgjensive underlay 
nor sewing, nor tacking, nor excessive cutting to • 
make them fit the floor. 

“As you can see. gentlemen, all this adds up 
to something more than toughness or luxury. 

“It adds up to cost efficiency; good 
business sense. 

“Aren't you delighted that Just for once, 

1 said something other than 'baa'?” 

Ftnancisl Times Monday May 22 1978 

executive health 

How Beet 
puts his j 
noxious ( 
feet in it 1 

IN our ■■enlightened" age, the H 
most _ indelicate matters may 
be discussed openly and with- 
out a hint or propriety. But the 
problem of body odour is Dne 1 
inat none save the callous dares / 
to mention in the hearing of the / 
innocent offender. A well-known J 
firm used to employ a famous j 
slogan: “Even your best friend L 
will not tell you." That was a t 
half-truth because I suspect that 
MJrb unhappy folk have no //l 
friends in any category of the 
comparative adjective. 

Usually the blameless 
offender is in no way dirty: thf 
indeed, he or she may pay an no . 
enormous attention to personal , 
hygiene which, alas, will do 
very little to help and certainly ^ , 
does not cure the malady. I aei 
say malady because these people em 
usually suffer from hyper ■ £ u< 
hydrosis. i.e., they sweat far PF 1 
more than normal. Sweat is D 0 
essential as a means of cooling ma 
the body. If. however, the con- ov< 
trolling mechanism of the 
sweat-glands is overactive, it is 
not unusual for the closely asso- if. 
dated grease-glands to be mr 
over-enlhusiastic. • Frequently 
this leads to a condition known f 
as bromidrosis, a highly offen- -i- 
give odour caused by bacterial . 
decomposition of sebum and 
dead skin. “* e 

If the victim is made aware "Jf 
of his problem, certain remedies W1T 
can be employed. Mild tranquil- 
Users? which reduce over-activity f, ld 
may help; small doses of atro- sn| 
pine-like drugs are sometimes 
of use; frequent dusting with 
benign powders is of some use - 0i 
as are deodorants, but the latter ms 
should be used with caution as a ro 
they may lead to contact derma- "T” 1 
litis in fhe hypersensitive. For J!" 
the very bad sufferer, whose r”‘ 
shirts or blouses may rot 
quickly, the last resort is sur- 
Scry, whereby the sweat-glands 
are excised in the axillae and 
thus slopped for ever. N 

Unfortunately, ihe person suf- and 
ferine from this minor yet in 
highly offensive disorder is und 
usually the last to be aware of 


Michael Dixon on an unusual annual dialogue between students and some 
of the world's top businessmen which began after the May 1968 riots 

“ | wonder if it*j my bronudrosis ? " 

the reason for his or her un- 

Years ago, when working in 
a hospital for the mentally 
defective, I had a peculiarly 
embarrassing encounter with 
such a case. A patient was 
brought to me in the hospital 
block by his charge nurse, a 
man called Beet Suddenly, an 
overpowering odour assailed 
my very sensitive nose. 1 was 
annoyed and told Mr. Beet to 
take the boy away and dean 
him up. 


When both had gone, X noticed 
the head nurse and the hospital 
charge nurse killing themselves 
with poorly disguised merri- 
ment. I said that the incident 
did not amuse me in the 
slightest, whereupon the head 
nurse spluttered out that they 
were only laughing because the 
most noxious effluvia was noth- 
ing to do with the patient but 
arose entirely from Beet’s feet. 
And they told how for ten years 
the unfortunate man had been 
unable to retain an assistant for 
more than one day. Naturally 1 
saw poor Beet and was able to 
help him to a less unpopular 

Now when such an unhappy 
and unaware sufferer is situated 
in a typical, over-heated and 
underventilated, modem office, 

grave problems arise. Because 
the subject is one of such deli- 
cacy, girls in particular may 
well resign rather than broach 
the matter .with the offender 
or their joint boss; and aD 
apparently inexplicably high 
turnover rate may occur. 

I have frequently been asked 
how to solve such problems and 
have no easy answers. If the 
offender is a new recruit, I try, 
to enlist the aid oF a faithful 
veteran to broach the subject 
in a friendly manner, to. mention 
in the course of conversation 
how she. when still a new 
junior, had also suffered, simply 
because of the overheated room, 
and to explain how she over- 
came this. Sometimes this 
method proves effective. 

Men are even less aware of 
their personal problems, and 
the more senior they are the 
greater the difficulty; for high 
rank is no protection against 
being high. One method I have 
employed with success has in- 
volved deception. Talking to 
the entire office staff 1 say that 
I wish tD find out if the use- 
of small amounts of an aerosol, 
called Ozium, does fas the 
purveyors claim) truly reduce 
the incidence of airborne in- 
fections. Whether or not this 
can be substantiated. I do know 
that a few puffs of this penetrat- 
ing and powerful chemical three 
times daily certainly masters 
the prime problem perfectly. 

’"WHAT I want to know is JB" * 

whether capitalism can ensure I %/l Q M <"B #Tf J 

three things." demanded a I vAWUdJclCI ^ LIS gl 
questioner from the ■ 700-strong & 


“Can it serve the needs of the J A ~H J • TT JPjL 

srarss at the academic JLelt 

- waste of scarce resources? And 

the elimination o f' pov^rtv^” f ° f “Pitalism against the observed were now demanding the free 
t eenminanon or poverty. practicalities of competing transfer of technology as if it 
Tp any veteran of university forms of econo mic-and-pollti cal were their Divme right » 
conferences mixing business organisation, whatever their .. . „ 

people with students and theoretical possibilities. . Prided n? 

academics, the response of Take for' exanmle Professor h 5 , a _? ded ' . 0f course we 
businessmen to that kind F^fiw^hofder Ss^ce' where we“But 

aU to familiar ftho^and or ° f the U *f- Pres idem's appoint- before passin on innov ' ationSf 
au to laminar: a uiousand or m p n t as director of the Arms ranitaiiit nroankatinne and 

more words of abashed and Control ■ and Disarmament Seir ^over^e^ should Zy 
sentimental chat about industry Agency . H e went so far as to re"^d ?o the 

and commerce fully realism- decIare free enterprise a neces- fmnhStin^ for theiJ Ion- 

r/r 3 . K - sar z r di v° n . ° f «»■' s 3^ ..Si 

■ ?■ ««pUon was pro- technological innovation. seC urity. and i nsist on a tit-for- 

vided by this month s St. Gallen planned economies and their tat .. particularly for advanced 
international management sym- associated bureaucracies in- technology, we must demand a 
posium capitalisms annual hibited individual creativity, he package deal." Professor lkle 
counterb ast ar the academic added. Why else was Russia added, which to his mind should 
Left— held at the Swiss town’s well endowed with natural require guarantees on human 

remorselessly modern, umver- resources and bursting with rights in tbe receiving countries 

sJty- engineers, seif-admittedly be- as weU as economic returns. 

hind the West in technological 

/-11 11 discovery, if not in the develop- . ^? e c0 °^ e ff nce papers given 

Challenge ment of ideas generated els£ industrialists such as Herr 

® where? Franz Luterbacher, chairman 

“No, a free enterprise system . * of Brown Boveri, and M. Roger 

cannot ensure such things," I?? 11 w *; nt ^ t ^ er to w . a ™ Martin of Saint-Gobain, were 
came the answer from the against perhaps understandably less 

business side. “But we don't , trans {f. rri "S controversial in tone. But I 

feel guilty about it. because on 5*“ *52?' did not hear a sin S ,e speaker 
the practical evidence available ,u the who admitted the slightest 

neither can socialist or any doub t that capitalism was not 

other existing kinds of system. eff ™. nte r y only ■■ the greatest." hut also 

“What is more, if a society £££*£ SnSS p0tentia,,y the most co “- 
agrees to concentrate on a d?^c^de “ pa * sionate «««“ live 

SBrtgfi rw 

£5“ SS^KK-JSa . Agreement 

With the burden ot argument Iands ; Natural resources such "Here everj'one is in agree- 
thus thrown back upon him. thp P e l r ? leum ™*Sht be 1 part of ment," commented one of the 
challenger stayed silent But it um y® rsa i huma o heritage, students who constituted half 
was not only in the question- . . sa ^ d_ ® ut . technological t^g aanua l audience, between 
and-answer sessions that the ,nnova “ OIls cer,ain ^ were not - lunchtime bites of a monstrous 
speakers— eminent industrialists They were the creation of veal sausage. “It is, as you 
and academics from most people working in a particular might say, a propaganda confer- 
Western economies including economic and social order — the ence.” 

the U.S, — maintained this blunt bourgeois order “vilified" by He could not have been more 
insistence on upholding the Marxist regimes which right The idea of the annual 


Here everyone is in agree- 

j "ffl j “The constraint you see, is 

H" iPy B C? J Ibis," said one of the more 

1 philosophical students, cocking 

his head towards the platform 
where yet another industrial 
"H" eminence was reciting statistics. 

C B "Sometimes some of the aca- 

B J demic speakers tell us some- 

thing new. But these inuusirial- 

... ,, . . ists just read their texts, and 

? hf f a J* ledaS almost every tiling they say. wo 

have read already in our news* 

ti™ Pt mon n th Pa %!r y r S t 

£rS&5,5s « STMT** .%S5 

Now more than twice the size, anrt having inspiring speakers 
the conference is still organised w ho would have no one to in- 
by the university s international spire _ a contradiction or cap- 
student committee. But the iralismi perhaps?" 

committee receives powerful 

financial support and encourage- _ 
ment from the foundation set up SnOntanPOIl^ 
by Dr. Max Schmidheiny, head 

of the Swiss Holderbank cement Neverthek*-.s, there were 
group, and from numerous com- moments when a spontaneous 
mercial interests. But at least student murmuring showed that 
Lhe names of the self-interested a thought from the platform had 
private-enterprise sponsors are struck fertile grmmd. The most 
there for all to see in the sym- noticeable occasion came when 
posium's programmes — which. Dr. Bodan Hawrylyshyn. uf the 
in my experience, is not always CEI management school in 
the case with student confer- Geneva, was summing up as 
ences advocating socialist chairman of the symposium’s 
causes. second day. It was simply not 

Whether this annual three- true, he said, that nations had 
day preaching of free-enterprise to chnose between totalitarian 
achievement reaches signifi- systems of the Marxist kind ami 
cantly beyond an already con- the individualistic forms of 
verted audience. Iam not sure, capitalism of the West. 

All the students 1 met there ' There is a third way. Look 
favoured capitalism as a fact, at the economic -access now 
no doubt because they were Japan, South Korea. Taiwan, 
looking forward to careers in Singapore. They have free- 
busi ness. enterprise, not lotatinnan 

But most had clearly thought economies. But their capitalism 
little about capitalism as an does not s,) much insist oa 
idea, justifiable by philosophical asserting the freedoms of people 
arguments which to ray mind a s individuals. They believe in 
are more cogent than those for seif-subordination to some larger 
for socialism. And if free-enter- society which contributes to ihe 
prise is to spring back from its general good, 
long intellectual battering in *’ Is that perhaps the winning 
educational institutions, then it combination for the future? “ he 
is surely as an intellectural added. "And if so, is Western 
idea that capitalism needs pro- capitalism flexible enough to 
moting. adopt it? " 


P re lent a 2 Dajr Course 


June 6 & 7 

Control Problems Relating to 
VRC's. Minis and 
On-Line Systems will be 

It is for Senior Financial 
Executives with responsibility 
for the Control and Accuracy oF 
their Systems and who wish to 
review the available Control 

Fee £120 Hr 8% VAT. includes 
Lunch and Notes. 

Phone Peter Smith at: (0332) 
23592, 23930 tor details. 

7 University Road, 

Belfast BT7 1NA 


Energy 201)0. The Mount' Royal 
Hold. London. June 20. Fee; 
£59. Details from Head of Con- 
ference Registration. British 
institute of. Management Foun- 
dation. Management House, 
Parker Street. London WC2. 
Financial Management for the 
Non-l'inancial Executive, The 
The City University. London. 
July 10-21. Fee: £4S6. Details 
from the Financial Times, Con- 
ference Organisation, Bracken 
House, 10 Cannon Street, 
London EC4. 

Y'onr Company. Marketing: and 
EEC Law, Gloucester Hotel, 
London. June 8-9. Fee: £120. 
Details from the Conference 
Manager. Benn Business Pro- 
motions. Press House. 25 High 
Street. Edenbridge, Kent. 

Management of Innovation and 
New Product Development, 
Metropole iHutel, Birmingham. 
June 12-14. ‘ Fee: £230. Details 
from the Administrator Post- 
Experience Courses. Manchester 
Business School. Booth Street 
West Manchester. 

Putting Manpower Planning ; 
into Practice, Brunei University, 
Middlesex. June 20-21. Fee: 
£115. Details from the Manage- 
ment Programme Secretary, 
Brunei University, Uxbridge, 

The Secretary's Role in Manage- 
ment, White Hall Hotel, London. 
June 21-23. Fee; £95 plus VAT. 
Details from PMG Executive 
Training and Development, 207 
Victoria Street. London SW1. 

- 1 

% : 



Financial Times MondavMay-22 107S 



The facts about 


Making a breach 
in confidentiality 

Scots passion can prove 
a two-edged weapon 


for Scotland. 

bad ofobl dnvs with tw« ii«md feet aiul prepared- u it h infectious enthusiasm, 
After medioS? to take »n anyone. The latter. finally. most vit.,1 0 f all, Scotch 

ONE OF the few British indus- in the first four months of this „ . , , «. ... and Wales, which produced two 50 caps and declined for niatiy f’riivuhriu bciilland heat Porn, 

tries which provides prompt and year, for example, nearly a' third CONFIDENTIALITY Of inform a- relevant to ■the litigation. Since The mpst compelling argu- j ra and ori j v . fi0 als. thev more is a rarity, a genuine font- whim. att.iouyh one nf the 
regular information about pro- of Ford's car sales to the UK **?“ supplied to a professional the hospital authorities were not menu .advanced by all profes- 1 * beat “ n h r. thc tr old e ncmy ballinu artist with the sreat ueak.-rt »f she South American 

ducrion and sales performance js were imported. adviser does, not create a prm- a party to any proceedings. Mr. sions. is that their reports are of E O | aod in n, ost significant talent' nf bt-iiw able to wnyyte «■(!••» will he harder than | 5 

the motor industrv. Shortlv after There, is a problem however. <*8 ° . against disclosure i of that Reid applied for a □ order that a confidential nature and if Qf “ horae internationals, clear of a defender from .i generally realised, they cjq 
the end ef each month suppliers, in defining what constitutes an information in proceedings be* the documents should be dis- revealed might discourage frank- ., tb u ^ . defeat bv a late stanching start in a crowded Ir.irdiy av.ud rcoehin;: the lout 
dealers. journalists and anyone imported car. Government s tat is- f° re the courts. TTiat principle closed to him or bis legal repre- ness. ' al following a mistake by penally area. »*e:hl. »«r "nly three matchis 

else with an interest in the ties are based on the principle £ as decisively restated by the sentatives. ^ Goalkeeper Rough was unde- Allium jh nyie banner claimed from I lie World rii;> fin 3 l by 

business have access to detailed that if a car contains more than "“use of Lords last week in an When the judge made the Procr|pf»fo served as thev had outplaved that -Kennys from Heaven suing forward with Holland 

statistics or sales bv company 50 per cent by value, of foreign- appeal tram the Northern Irish order for production to Mr. A England for most cf the match and another that he .-.trike* Iran arc the found team in ftp 

and by model. Although some built components, it counts- as r ,.f!hA i « S ° Uc,tors . J“ tfWi!* The 1 ast argument might have it must be admitted that neither quicker than British Leyland. lie croup. 

other European countries are an ‘^Ported car- even lfitis ■ " ^ a sTrfes^f cases^^l nrnri?.P«™ a fh!rirert* 1 tn carried weight if the disclosure team suggested world champions, is not an especially deadly The Sent > have the same type 

more secretive, there is nothing J" th *‘L U '£; *!~ tb f Kh Court d? Jh! RSfiSK® J j OUld b '-“Sf J° which the ^ urt ordered was to Despite this unimpressive finisher. He scores goals -i> , lf „,i^i«, n for Soccer nu u* 

unique to the UK about this: s M MX fig u res the location of *:"f ,lSh Court L? f Appeal wer the medical advisers ^nominated by ^ world at Iarse . But dis . th ird place in the final table, it being in the right place, of hy Welsh have for Rugby, it K 

tiie U.S. has an even more com- f ss .?!" b [-)' LV- Drotectio/ to^hSnita^ In the «nS n f a 2 l 313 d 1116 p! Uff closure of dbcnraehts in litiga- would be unwise to write off mating an opportunity with a mor ,, than a almost a 

prehensive supply of data. The dESSX of respectove^ . tion is restricted for use in that Scotland's chances in the World religion, and van bo seen in 

British system has been operating J 1 '” .!„h £, A «!25^ their naLents f ° f f ® f . “ litigation. The recipient of the Cup in Argentina. They possess many way-.. When a player 

most peopled satisfaction. *But HneV 0 ^ "«S A marvellous z l \w.!^m , a.f^c 1 h Lr , LnS 

W ~i ’ CS3 m Vereonaf iSK ^ of justice medidUe, H & ffu 

redudinn in the amount oE f ";£ b ££ d f' Ford or VaJibln ParliaS ntraduSd a whol°? fooiaht tSl tS S- nsS bv must not be ^ibited by a rule delighted, if they finish higher £ \ the delishi of his supporters an 4 

information made available. XJL& new procedure" Even before 2 ?3lEJ£*£!c \o* Z* lo WOOderful cm.slernntiim of the nppoi 

j. , co”its as a British car. action is started the prospective permit the courts to import anv ,nde *d. be dire con- they will need to pia> consider- turn. 

a OSt-IflOrtCm There is a view that the inter- plaintiff can ask the prospective restriction on the ’rounds of ,2j sc l < ? sur ® for ab!y thar l h tt l e v bave done Th,s p:,s ? lon ?oc n 

-.r . .t, . chinee of components by the defendant to produce any docu- confidentiality. purposes of lrtigation is to assist recently to so that for MlO.UlaUI * * * and hcarti in their followers. 

One line of argument is that u.S.-nwned companies has ments he has which are relevant not merely the advisers of the Their manager, Mr. Ally |___x !i- The Hampden rrnwd not only 

the 03 u res are published too rPa( . h ^ a point ^ere it no l0 n- to the case. The court mav same^ profession as the makers Macleod. has used the home DJJE || CUUtU chccr loudly and incessantly 

often. Is it really necessary. makes sense to distinguish order the defendant to hand JL/JUilLUll of «e reports disclosed, they internationals to work out his , . ■ _ thmuchout. hut are »ull roaring 

some people ask. for a public between ‘■British” or imported them to his opponent for the The hnK _ }l0l . ar ® ne a ded by the legal represen- most effective combinations. His Iporj |D ''Q3D&£r at the end: whereas at Wembley. 

post-mortem to take place after engines might be manu- purpose of pursuing his litiga- thS^SS^ -“"IS" 1 ^ teU !¥* . w . ho - assisted by the final selection will be a formid- lcau b with England losing f-fl. a con- 

each month's performance? Ups f act „ r ed in Dagenham, exported tion. breacfainT tta5 «mfideSri^sfv adv,se S advise as able team, even if both collec- siderable portion of th.* spec- 

and downs in an individual com- t0 Spa i n For use in the locally- IL™ « o r . T0 **» prospects of success in nvely and individually there are .... . , . tutors would alrvadv be on their 

pany's market share may be due f, u ill Fiesta then shipped back n ^ a j t Parha “ enl the litigatioD. ;. several countries. including dexterity close to genius, but he “ r ho “ ‘ U ~ 

to special circumstances— a \ fi UK as a comolete car. lOW0F nnwif-^n 6 t iP tended . l0 tf , C0Q r !fi-? T* 1 ® N'ortheni Ireland case Brazil; Italy and West Germany does not put the ball away with This r cv ' our Pna hi(i5 Srotland 

shortage of stock, a major sales what matters is these companies . . Drofessiona^re^rri^ \\Ti a t ? S must be counted as a significant with greater flair. the certainty 01 J imm> Oreat<LS. -am e amt doreat a 

prom ou on drive or whatever— overall contribution to the UK The same Act provided that a , h ° f ,I e . C0 , mroad on the claims of those Scotland have experience.' a Scotland have to decide who ° J L’ , . iam J J. 

and the mooth-to-month changes balance of pavmonts. which is court could order a person who tba i t th ‘ he __ Ho d f. e who seek to keep their records belief in .themselves and four will play alongside Dalglish up J- 

are given an importance they do very substantial positive. So. it «as not a party to litigation to of Lords. deaJt fc - ltll so di^- confined to their professional world^lass players. two from-the brave, strong-ln-the- ^ btbmd ^n± 

not desen-e: why not publish the U 'suggested, the cars sold hv disclose relevant documents. m pijlf ly ‘ 0 „, 0 . . coBeagues. defendere and two forwards, air Jordan or Derek Johnstone. "“ l ; ' . '? 

figures on a quarterly basis. Ford nr General Motors in the The practice followed in re J 0 S? fnr iavmSn courts, goaded on by which is perhaps one short of who. though not so mobile, has ? s a° dancer Slid 

9il-in» a fi i rpp mni-nciinfalinn if lik" chnnIH r-imnlv ha mu. rrfarf Eneiish Courts since the 1970 records are. difficuit for laymen p, H i imMt io» .am'itiua inihhp nuniher normntiv fnunri in found the back of the net more but there is 0 ciangcr. If could 

rur several years, apparently to u*;?. , h “ jTy mnni as Fm The specific problem arose out court* h J Telan ° he,a t r „ P i ne documents may not put them to several qualities which should A rnarVpHrtllC 

most peoples satisfaction. But back to the UK count as im- n , , P? 01 courts had no power to order anv purpose other than the carry them through the zonal Hl«r^ > tllUUia 

there are rumblings within the P^ned cars, oven tboufih the ora change in the taw in IB1O. production of documents other Utieation in band sertinn of the comoeiitlon but . 


T» j, . co—its as a British car. action is started the prospective permit the courts to import anv ht ,n de®d be dire con- they will need to play consider- 

a OSt-inOrt05ll There is a view that the inter- plaintiff can ask the prospective restriction 00 the ’rounds of il« SC M Slir ® f0r ab!y ^ tl f r thar lJ t l e v p ave done 

nnp .. _ >r . ,u . chinee of components by the defendant to produce any docu- confidentiality. purposes of lrtigatlon is to assist recently to so that f J £ Mlll-uIfllH • • • 

,. 0n | ,,I3e of argument is that u.S.-nwned companies has ments he bas which are relevant not mc rel y the advisers of the Their manager, Mr. Ally * x fx AniI ]J 

the 03 u res are published too rw . h(?d a point where it no l0 n- to the case. The court may Fliff ■/»*■!* sam e profession as the makers Macleod. has used the home DUt If COUlU 

often. Is it really necessary. n , akes sense t0 d i st ineuish order the defendant to hand L/iHICull af the report* disclosed, they internationals to work out his , _ - 

some people ask. for a Public between ‘■British” or imported them to his opponent for the The hc«nii 0 i -n.thorifi^ . ar .® neadedb - v the legal represen- most effective combinations. His jporj fO ''QflD&Cr 
post-mortem to take place after P;irs; engines might be manu- purpose of pursuing his litiga- t>i b “£i®i- 0 o“i b °« “ taUyes who. assisted by the final selection will be a formid- ICflU 

each month's performance? Ups factored in Dagenham, exported tion. hreachin? ^SSmSiiv adv,se S must adviSe as able , team, even if both collec- 

and downs m an individual com- t0 Spain for use in the locally- ” ™ IS® j S JT e n S 0 H!ri w fhe prospects of success in nvely and individually there are j , , . , . 

nanv's m-irL-ot ah.m m-.v ho Hna ■ _i_: ■ , i. W&rB SO dlr0 that Parliament thp lirimtinn • ■ cpiwmI <-niintrioc inptiiriina deXtPFltV ClOSt' to CPOlUj. blit l 

figures on a quarterly basis. Ford or General Motors in the The practice followed in “eojcai notes ana The courts ^ go^ed on by which is perhaps 01 ^ «. -• — -- -- -■ - - -- h(l1 Th . rp is lf nntt . A 

giving a fairer representation if UK should simply be regarded as English Courts since the 1970 J* 1 LV^S ParUamenL are less sensitive to the number normally found in found the back oj the net more bj« 1 there is a , ^ n JS r ' 0 n/r^| hJ 
what is happening in the Ford or General Motors cars and Act has been to make oroers con- jo l , 1 ° t * r B™ L £ij d pr fJ cfeims of speciaJism. Only if an the eleven winning the World fr t n “ en 1 tl ^„ lb, , s 5 - t h,. nHv^ , i nr ?hS 

ma-ket? their country of origin should finmg the production of hospital ^ , nrnfi? overriding public poUcy exists Cup - - — ' K “ th ‘ 

There are several objections to not be specified. records— at any rate in the first , a win they countenance any land Hctjueen is not c 

this. One is that the monthly instance— to the medical advisers r '°"J * b |5 b 3 lu indu| 8 e of privilege to confidentiality, manding central de 

figures WUI still hr- circulating t ort UJ mo *A of the Utiaam. but not to the lay- ,n 00s «w e Tbey may respect the profes- has priceless ability 

.,11, ,,n ■ ■ 9 .P M 1TI 51 T f* man nr hie Ipg.ll rpnresentatlves. f nen 11 was said tndt toe QOC -i nna i «L a ,. will ;♦ anale tmni uPt II 

figures will still hr- circulating J nmtIn»n*A or ine UI J? a “ l * ° UI 1101 ,Q Tne . ,a >- Then Tr wa« rliat i 

among the manuraeturers. It is L0gltllll2tt0 man or his legal representatives. to I he " ’ t _ w “ ?“ d t tbal ,! 

inevitable that those companies lt be re-rettah!e if this ,n DOne of the ca * es v,as lt fonf re health miUi,* it ] 

which have done .particularly J^"SSSS. 

' J l lbe,r hai,res 0 I've imports by the Amencan ^^jolure di*tr«c anrf anron rut-: 

records— at any rate in the first ™ a sESiHo« win they countenance any land McQueen is not only a com- composiiton of the midfield trio 
instance— to the medical advisers , a “® tei,d9 lu in[ju| 6 e of privilege to confidential^, manding central defender but * fan^J - jw fonuattnn will 

of the litigant, but not to the lay- „ An „ They may respect the profes- has priceless ability of scoring consist of the busy (icnimill. the 

man or his legal representatives. *“ e “ WM ®“ d Jbut tne ooc- s j ona j code, they will not aive it goals from set pieces, and aggressive Hartford. and 

The btsaesl problem is the th«* players, several of whom are 
imposition of the midfield trio, far frnm passive characters. Thiir 
fancy i he first fomintion will could prove fatal In South' 
nsist of thu busy Genimili. the America, where the referees uhir 
aressivc Hartford. and be hard on offenders. 

KmadepSwi? The result ,iVP S An SSS? of distress' and ^ retard his gteM ^ SS^t^SSuSS^SSi me^lh^they will be whhout Johnston. Hartford and Hioch 

be a serie-, nf leaks and counter com P‘f m f ! * bave a f Instead, the courts had pro- recovery._ That is the traditional Board. was the understanding shown by Masson, who hits the best long- are all too likely to retaliate 

Kit 5 h!£ will be uTaK i" ceeded on the basis that confiden- Pj* ' of the medic al Pi^enun LufrpMlHosptM 3973J IWLR his w e 0 U ^nS-backl and the ball nau*. and Rlnch. rim when provoked and one wonders 

the m inufactnr^s nr the Society ° r ,^ he American companies, as lla , t0 the determination of [ mediCa I advisers what rS^ 14 ?,, Hospltal are the brilliant natural winger Scotland should do well in the Scotland will need al 

of Motor Manufacturer*; and l ve A a * tee weakness, of Ley- issues arising out of foe claim. >s wron e . Board [1975] IWLR ^13. Willie Johnston, and the mer- World Cup is ability, there are passion, hut if thev inse 

Trader? f which i^ue* thpm) to v nd, T?I- e part of the reason why Now a] | t h a t sensitivity towards curial centre-forward Dalglish, three other important factors— they will lose everything 

evnlnin wh it hannenpd just jc lbe ^ share of Continental the protection of hospital records ; — The former is in the classic decidedly friendly .draw their is the message Ally ft 

. " ldl1 ”"•11 Udpueifcil JU 3 L J 5 „ _ m .. rlrdtc ie cn Inu/ h/iAn .uiont .will mni.lH (net nlnim. . , n ~ nnr i ,..k n K... kkr.„ i. ” 

,h~ r rt ™«-nr-r ^ .117^ J Car markets is so low. has been swept away. 

»r,- ; »iL atJsr i C ?K ^ The American companies are a Mr. Mclvor started an ■' . 

ni'nr.»hH- e ^irfA fio ffd l r e eS 10 tbo »ery large contributors to the action against a Mr. Reid in foe \7 j* n • • 1 I 

Mthmiih TJ JS UK balance of payments and courts in Belfast for damages for Y OllTn *5PrVlPP HlhC TENNIS ry 

collect and nr* they deserve all credit for that, personal injory sustained in a 1 UUU1 -bUUll SCI VICC JUUb | « fcWWia BY 
1-css ^ it would he a ref rn«rade But there is a tegitimate interest car accident in September. 1975. ' ' _ . s ^ 

‘ r«r »n inrtnetrv where they source their com- One of the medical issues was YOUTH shun working in service Service industries such as the 

ridprt in hl Lrn ponents and their complete whether Mr. Mclvor's total in- industries because they see the hotel and catering industry 

nnen with the nuhlic tn retreat vehicles It is impossible to capacity for work since the jobs as low paid and demeaning, often conveyed the wrong 
inn slilv P b! Lw understand the UK's import- accident (and in future} was Mr. John Grant, the Under- image. lacked social prestige, 
another reason fordissati" fort ion export performance without caused by the injuries sustained Secretary for Employment, said and failed to match the expec- 
JmoM the ^manufacturers^ Thi" knowing what the multinationals in the accident or by a pre-exist- "> London at the weekend. tations of school and college 
concerns the vexed question of ate doing. Using location of ine cardiac or vascular condi- Speaking at a conference on |f a J ers - h ® said - man y 03868 
“captive" imnorts. that is. those assembly as the criterion is not tion. youth employment. h e said: "We pa> .. conditions were 

vehicles which are imported frem ideal and perhaps it might be It was not disputed that hos- must aim to increase the number °J a ”^« lve - tra J* i ;g was in- 
Ihe overseas ussoriatns of UK- preferable to revert to the 50 pita! notes. X-rays and reports 0 f young, people at work in the ® n “„ „i^ re was no 

}>a«ed conipanies. Ford. General per cent, definition. But some relating to the treatment of Mr expanding services sector. Des- proper career structure. 

Motors and lo a lesser extent definition is essential: any Mclvor prior lo the accident pile the cuirent high level of The conference was sponsored 

crisp, confident performance by power nf shot has decided many whether Brian Clough's calming 
Kennedy at right-back. matches. influence on Burns will stretch 

The two outstanding attackers Although the prime reason to the other side of the world, 
are the brilliant natural winger Scotland should do well in the Scotland will need all their 
Willie Johnston, and the mer- World Cup i< ability, there are passion, hut if thev lose control 
curial centre-forward Dalglish, three other important factors— they will lose everything. This 
The former is in the classic decidedly friendly .draw their is the message Ally Macleod 
mould, fast, clever and arrogant, volatile manager, who bubbles must put across to Ins side. 


Why the wor 
are giving Re 

’s top misses 

a miss 

Chrysler have all been hrineine attemnt to 
in cars from their Continental the figures 
factories on an increasing ?calf»: resisted. 

tlnf blacraii r dSl , el C ^ OJSS The’ Monday Film: "You'll Ea7t' 0 'TNorwich»: ’ Look" North “SiSliJr I ^$50,000 Florence Upen.'thw Mexico's R 

Like \\y Mother.’ starring (Leeds. Manchester. Newcastle i;.s3 uniwreftr Chiii-nsi-. 6 jo About mtv was t-As im' General s^rvic-l Ila ^ ,an championships fa Iso In stark 
£j£5\. | Pat iy Duke. Midlands Today (Biratlnghami: Anuifa. ia.w uresiyic. uoo TY.rJoncu escsoi: loo-lw p.m. Rupori Wesi Head- 1 among the « tournaments id ruimenst 

10.55 Tonight. Pomls West 1 Bristol I: South •• Saisn's Tnanale." iiarniw iOm Nev^ lines. ftJ 2 Report West. 

6.40 a.m. Open University. 9.38 11.35 Weaiher Resional News. Today 1 Southampton); Spotlight 1125 B^OecUon • J’ 

»r Srhooli;. College v 10.45 You All regions a.% BBC 1 except at South West fPlytnouth). ATV " v SLOT1J.SH 

9.00 News. 

For Si'hools. College v 10.45 You All regions a.-. BBC 1 except at 
and Me. 11.22 Fur SchooK the roliotvinu limes: 

Collec .s. 12.45 p.m. New-. 1. 00 Wales— 1.45-2.00 p.m. Pili Pala. 
I'obhle Mill. 1.45 her wk-k Wales To-day. 6.55-7.20 
Green. 2.01 For Sirhrwls. Collc-ues. Heddiw. 9J5 The Harlem Globe- 
.".15 Your Songs of Praise Choh e. trouers 9.50- 10. 55 5' Tasman iad 
333 Recional News for England uU' 11.35 News and Weather 
lexi-ODi London I. 3.55 Plav School for Wales. 

4^0 The oddball Couple. 4.40 Scuflnnd — 5.5^-G.20 p.m. Repori- 

Cheggeis Plav*- Pop. 5.05 Blue ins Scotland. M.53-7J30 Assembly 
Peter. 3.33 Roobarb. 7S Ihighliglils of today’s debate 1 !. 

5.40 News. 10 35 Public Aienunt. I! JO The 

5255 .Nationwide iLondon and Harlem G lobe iro tiers. 11^5 News 
South Ea^r onlvj. and Weaiher for Scotland. 

G.20 Nationwide in Europe Northern Ireland— 3-13-3.55 p.m. 
“live" from Brussels. Northern Ireland News. 5.55-6-20 

definition. But some relating to the treatment of Mr expanding services sector. Des- career structure. . TODAY, in the marbled splen- cause. Come to think of it. in saw the dollar as a potential 

is essential; any Mclvor prior lo the accident pile the current high level of The conference was sponsored dour of the Foro Ilalico in Rome those days Panatta would never threat to the health of Euronean 

to suppress or blur were in the custody of the unemployment many young jointly by the British- Youth begins the sixth week of the have lae-d such a draw: bis tennis-and for that matter of 

es should be firmly Southern Health and Social oeoole sun shun jobs of. this Council and the United- States European leg of the season-long path would have been cleared the rest of the world 

Services Board, and were highly kind.".. . Information Service. Grand Prix • competition— the to foe quarter-finals at least. Despite some siron^ outnncic 

paims-linked circuit, that The, ooly British man compel- pamcJlarly in Japan and AuSirf: 
braces DO tennis tournaments In. ing is John Lloyd, who is seeded ii a , the trend is P unmistakable 

27 countries and has an Slim Mo. 15. ami plays a qualifier 0 f the 90 Grand PriT tour na- 

pot of gold to be distributed before taking on either last meals in 1P7S no fewer ihaa 35 

among the men. years surprise finalist Tonino will be in the Stales The sii... 

Despite last week s two touma- ZnaareUi, the Italian Nn. 4. n r non for foe women in even more 

ments— the $173,000 German Kjell Johansson (Sweden t. Fur- alarming. Exact I v half of the 

vs England— 5.55-6320 p.m. Look News 200 Hooseparty 2.5, Kind vqiop-' s«itic’; unis pm. Pi>na«rdau championships in Hamburg and they ahead lies the No. 5 seed, tournaments in thn *y5ui im»r 

Monday Film: - You’ll East {Norwich!: Look North f' "fMJf gSX jSKa 10 ?- r^tMMyr^wSSSS, *e siSO^QQ Florence Open, these Mexico* Raul Ramirez. national Series will be in 

e My Mother.’ starring 'Leeds, Manchester. Newcastle i; >5 ^ university ChinVn^f' sjo About mtv Wa«t— A s im’ canorai Service ,la iian championships fa Iso In stark contrast lo a powoi- America — Id of foe 32. 

iy Duke. Midlands Today (Birmingham): .Mwiia. ulu uresivie uh tv.iuovi« excew: 100-1.39 p.w. Ropori wmi Head- among the 32 tournaments 10 ful men s field foe women s draw Thp inmortam ihinr. ,u A 

light. Points West (Bristol): South " ^sawn's Tnajate.” «arrnw iCun Novak, lavs. bJ2-b.i5 Report Wes 1. the S175.000 - category 1 are re- is pitifully weak, due entirely future of Furnno »* 1,. ..vltJ » 

iiher Regional News. Today .Southampton); Spotlight «-»»■*- Bvitoeuw. . crvv ™ CLI garded by the players as the first >0 the attractions of - Te^mi s 

a? BBC 1 except at South West f Plymouth). ATV " ‘ ■ SCOTTISH of foe major European meetings. Tennis. During its four-year ^d t-rfoinlv llu^ ^foln^ 

‘"S n , nnr 7 ujo p.m. Gordoaiiia Todir. us atv and there is 3 U3eD ' !i deld worthy existence the U.S. inter-city j; |ime th c . H.’jjj* L * '** 

P- m - Plb , Pa ' a „ BBC 2 " A^chiki f brX Drctn ci iTtcm of the occasion. which nms from M:.y to V ac k of enfold iaJm ne .dii Z 

mtu? fiSom^sro" *% a ? c p h e o n 0I Univers,ty ' sajr Nine ° f the worid ’ s ^ 12 — Au?ust with 3 gap tn - Tone fw — the 

9,:-.M„.5 3 Y Tasmaniad l JJf p P ^ ^ b ^ mvcr , ity : ES-SSK- ^ ^ 

.a News and Weather 7fl0 v„ u ., ' o Headlines with 1125 am - Sprocihina Differ-tir- presoined U ^ L ‘' 

BBC 2 

7.00 News on 2 Headlines with 

70S Taking Shape. 

7.30 N'ewsday. 

8.10 Curriculcc Curricula. 

9.00 Marti Caine. 

9.50 Tales oF India. 

l0-.n Sea Tales. 

11. 00 Late News on 2. 

by Father Amelins Andrew. 

"I L f’- & SJ ,nlw, ! , 12 Nine of the world's top 12 men August with a gap in June for comueiirmn ihl i , • f 

S SrS. competing, with only the ^ 

ailing Jimmy Connors /who f lra ' ^ J he ^ pls,>e, ' s : SO men and 70 women in S 

SOUTHERN Europeli clay w ay), foe schedule has been bum around S ° lta S 

1?30 BORDER. ■ «S^ , ffiJSSrlSttaS enigmatic GuiUermo Vilas , h , S «« fo« ur and ^fo^drew pre^iaYS? 

ao^r &. Q SttLSS: 85 S:SS : «S5. "TSTion'S ZFJ'SJIS? S hi S V, FrencS r n five ma?Chis ' U 

Siarwrs atfJSfcnSB next week) and s.?n n 55 Bandwagon 

S3«i22SL W.,tt**"S4.HSS2£ SSSFn^tt. the confirmed Team Ten- - the 

“live" from Brussels. Northern I relnnrl News. 5^5-«i0 n'in Oorn Donr 

Gfobe trotters. Scene A round Six IMS News JJ^o c&down: Mervyn Levy, 
i— * Angi’ls. and Weather for Northern art PT -.» ifl , hn .. t nTtp 

8.IO Panorama. Ireland. ?!* Jl "VS, Jfir.l 

srwriswajras Mr - U ir 1 K ^ BJS2»wn next week) and Bandwagon Even n more enc^ raeine W was 

?£"uSi»enfw nis 1 s^^ort C e a r n ^foI eam Ten ‘ Only three lower representa- [he eagerness or the world's 

^ ^ “ ° Bjorn P Borg* o^Sweden make, 

channel ••• jnfNjLTgHL- „ ^ll p ^r£n^e?SrnZ wiftf.WN 



mm mm 




























of hLs favourite paintings. w £“. p -*- ;, orrtJ ^ Ncvrs HcadllIIW> jx* pm. 

london .wa^ss awa..n»“« SSSSS taR?^™ uJ’Sj !R™^i, 1, '.nd The S 

SoZir&7n e ■l « S' S'S'SS.f'S rari, ie vlt»urTmpon a nT a " a wngon long ago The prize money *“ 

Th T 0a e i- Uununnion Honw." ttjrrlng sUftovVones- HcadJlnes. SJS Uorrendry Challenge. bM The holder. Vitas Gerulaitis for women in Rome, S32.000 in « ° 3 ‘nreUafo the pre- 

The Tomorrow People. S.Io Bat- sas university ChalltnEc um> Grunplsn Ulster Tcfevlslon News tl» The Psn- returns from Team Tennis iimJ all correctly reco«Tii<w>s the and m the third 

man. Today. 605 me Electric Tbeilre Sbow. ners. 6J0 Rejwns. lllJO Two at 10.30. “ru - .vl 6 ™Und won CQnvincinclv acainst 

5-15 News. U-15 Reflections. 11- JO Dsn August lQ-« Monday Movie: "By Dawn's Early wrt “ permission tots time Fhe Qlnerence in Standard against The the r.vnf*rforipr.rf Ie„,„ "* iai 1 nst 

d'ni) Thames tr fi IMS ajn. Grampian hale NttU Bead- Ligbl.’’ IZ2S pjn. Bedtime. . Was fined heavily last vear bv men. ir-fL.!?..-, ■' C< J5L , Ja P an4? se Jun 

6 40 ““ V uircTWiDn 'S' ’Si™ 8 Laves)— and faws For the reasons stated the ? ! ThL put him into 

<!.45 Whodunnit? GRANADA " . WESTWARD the 1976 winner and local hero European women’s season has hon/Vi 3 lfy 55 P r °P er - where he Coronation Street 12J0 pjh- ffow io stay AUra. i-» i^w^arf 1 Adriano Panatta in the first virtually disappeared. Only the Yu nUuV. f' 1 '? man I” 1 ? 

R.00 World in Action Special. ! tTu* “ Colgate tournamenl at East- p?;, N ^ kl 1 Spf . a t r H' 

9.00 The Look. Bervi’a lm^sSs V uditcrmnr"ffiileni» tie udy." starring creer G arson and The fact that this dream match bourne Immediately before Wim- »,« fu 3 P v C j ,n the 10:11,1 

;«•«« News SS7o«i l 1, scheduled for tomorrow to biedon and foe championships ha J play the ' 

I02I0 The p>-e Colour Television Right .u^iRepotta politics. lM» Mon- £££’ u* mmrt t4^. S alIow l . he American time to over- themselves can nowadays exnect nU?L Fr ? och b .oy Yannick 

man. Today.. 6J5 The Electric Theatre Show. ners. ug Rejwrll. MJB Taro at 10.30. 

5 -15 News. U-15 Reflections. 11. 3J Dan August 10-« Monday Movie: By Dawn’s Early 

fiioo Thames at 6. 13-15 j-ate NlglU : Head- Light." IZ25 a^n. Bedtime. . 

u! wnlodunnit? GR4NADA WESTWARO 

7.50. Coronation Street 12J0 iwn. Sow io Stay AUva- 

S O® )J! orl ? Action Special. ^ reuw “vfnM.” F j!S Tbe M«*day Matinee: ■■ The Law and 

9.00 The Look. .““"S* 016 •Lady.” starring Creer Corson and 

AwnrSf ColOUr eTOnon S^JSfrJd°i5 »**■' MJS tSSS Lm' im ' allow the American time to over- themselves can nowadays expert Noah whS F ^/h? b ^ y Y ^PJ C 5 

£y" 3r g?- M rirtXS^' 1 . Jw ^reeswroodt w EncwmierT um Laie Night Mone: " Tt»c come jet-lag indicates a growing a full-strefigfo entrv H ar1, alfoouch qualified 

!ii s si “asr ss*. G *s-« htv as- * & ^ ll = zv^L ovtci 

Jermlnw^ POem by Ell2abet:l1 1 U 0 P-m. i^mtecape. ua Repori l West YORKSHIRF officials. A year or so ago they Unitrtj States l^'th^Mhe^ne 1 of *v, S ° as these stairways' to 

All IBA regions as London 2 .m' m HMiscpart». P tA3S Wa Tho MmrfS U-30 tun. bow to Stay AUre. uo ! n ® ver bave missed such a things. When Open tennis was ran *' be^ protected ° f Sa th P 

except at the following times: «“ ^55^3^33 IS? & iSSf-,*tS.' ■ B CllanC ' ‘° 1 ° >tlonai ten scare e S o we all fu?are of P E S r epe j s Ufe" 

. ... University Challenge. 6.00 Report West- University Cha Hence. ADO Calendar 

AiNuLiA bJ2 Repun Wales {Emley Moor and Belmont editions). KUO na aikia 

12-30 p.m. Out of Town. US Anglia HTV Cymra/Wales-As HTV General Lifestyle. LUO Police Woman. ^sflVlWu BY DOMINIC WIGAN 

^ 11,6 "f.the 

acceptance of the starus of the This: of course. Is all part of fof the e ^ en ^ opted 
" d , am0I ^ e Italian the growing importance of the So « £ ne ,n # s, ? ad ’ - 

“80 Jhey United SUM In the scheme nf thfrich.'. f V".™** J! 

enms was pan be protected then 
ago we all future of Europe is safe. 


1 The reaction has Black upset 


X He has no choice, tbe poor 
fellow f6) 

5 A good man gets at us in this 2 One feature about the work 

condition (6> 

of a composer (6) 

9 Words of approval for mer- 3 Clara's upset by the sailor — in what way? (4.4) 
10 Don't despair — Teddy's out of 
bed t4.2) 

Jl An untruth includes hypoc- 
risy in Spain iSi 
12 Hospital returns have noth- 
ing for the geographer |6)‘ 
14 Justifiable argument makes 
pa not livid i5.5) 


4. Sporting wear for the 
asthmatic (5.5) 

6 Highest positions for foresters 

7 A slow mover we put quietly 
in the ground (S> 

8 Keeps un in the middle of 
games (S) 

IS Mnff, . Civil ser. » 5*3-™- >■* 

l^^uaK » T^j^rcsirictinns for does (SI 

<k> Fish wnh the doctor inside l,l?t nca ^ tn source and be 
*“ ,he Arctic ptefos kindiv ^rosod i4.4i 

■rt Budo in the Channel 17 Frightens the French from 

■>"1 is about m distribute perfect foe bee. fining (Si 
“ nnncepte (G) 19 Thls cven,n ^ to an American 

05 mnflidcr hbv* to fntenwim can b? explosive (61 
— Turkish canitai 'Si 20 Tne running of a hnu-je makes 

siphoned ostentation 16) people grow old 161 

I,- Noi.-iv saint has to have a 21 A road in a Somerset town 
change of heart iS) . 

The solution of last Saturday’s prize puaale will be published 
with names of winners next Saturday. 


(S) Stereophonic brudun 

5.09 a.m. .\s Radio 3 742 Dave Lvv 

Travis. 9.00 Simon Baius. 1I0Q Paul 
Burnet! Includmc 1230 P.m. Nvwshcat, 
7JJ0 Tony Blauhbum. 431 Khl Jensen 
includloc 530 NcwsbeaL 730 Spnru 
Desk 'loins Radio 3i. 10.03 John Pud 
<S>. 13-00-2-02 a.m. As Radio 3. 

VHF Radios I and 3— SJ0 a.m. With 
Radio 3 including 135 p.m. Good Listen- 
ing. 10-00 Wild Radio L 1230-2. D2 a-m. 
vuh Radio 2. 

RADIO 2 1.300m and VHF 

S3tt a.m. News Summary. 532 Ray 
Moon? iSi vrith The Early Show Includ- 
ing (35 Pause for Thought. 732 Terry 
Won. in ■ S i including B.2T Racinu Eulk-tin. 
8-45 Pause for Thooghr and 9.30 Cnefcyt— 
Ule draw lor il» quaner-Bnals ot Uie 
Benson ind Hedges Cup. 1032 Jimmy 
Young i 12-15 p.m. WagRooors' Walk. 
'2J0 Pet- Murray’s Open House iS> 
InelndiRg 1.45 Sports Desk. 230 David 
'ivnihim 'S- nwlndina 235 and 3 jo 
S unns Dusk. 4J0 Wjacowrs’ Walk. 435 
Sports Desk. 430 John Dunn *S< includ- 
ing 535 Spnrls Desk. (-45 Sports Desk. 

BSC Northern Rodjo Orchestra f?'. 
730 Sports Desk 733 Alan Dell: 
The Dan©- Band Days. f.K The Bik 
B ind Sound 'Si. 9.B2 Humphrey Lrt:elion 
wiih The Devt of Jazz on recurd-i iSi. 
’■35 Strnrui Desk. Ill 02 Th« Monday Movie 
i)ul» 10.30 Siar Sound. 11.02 Brian 
Matthew !m rod uves Round Midnlafal ui- 
■ludinq 1230 NuB-5. 2.00-2.02 O.BI- News 

RADIO 3 464m. Stereo & VHF 

t Medium Wave only 
TbS5 a.m. U' ..a tiler. 738 News.. 735 
Ownurvi *S' 8.0Q News. 8-05 Morn Inn 

Concert <Si. 9.00 Neu-i. 935 This Week's 
Composer: Elcar. 930 TaUany About 

Music IS). 1330 1377 Benson and Hedses730 News. '735 The Archers. 730 From 
Cold Award iSi. UL 55 Mozart and 0ar Own Correspondent. I JS The EXllw 
Schubert conecn i Si. HAS Sir Arthur islands (Tuvalu r. 800 Curricnlee Cnrri- 
Sulllvad recital f5i. LOO p.m. News, cula <5< isEmnltaneons broadcast with 
135 BBC Lmuhlinie Concert <S>. 235 "1C-2 Tetevunon). 9JB All [he Fun of 
Music For Ora an >Ei. 230 Matine* Musi- ihe Fair. 935 A Sideways Look at . . . 
calc tSi. 33B Bach and scarialW iSi. The Pnec of Life add Limb. 930 
4.30 New Records or music by Suppe. Kaleidoscope. 939 Weather. U30 The 
Saint -Saens iSi. 5.15 Bautbuml tSi. World Tonlsht. 1030 profile. U.OO a 
£ 5.45 Homeward Boond. 1635 News- £630 Book at Bedtime. ILLS The Financial 
Homeward Bound 'continued*. 2630 World Ton lehr. 1130 Today In Parlla 
Lifelines: Home and Family. 730 Beet- meat. 3230 Nows, 
hoven and Brahms concert fS»- 6- 30 _ ^ 

F.BU Concert from Pans, wrt 1: Boujes. BBC Radio London 
Madi-rua iSi. 930 Tirloc Out one^ New , „ , _ 

Sword *iaBc by Mary Midgfeyi- ®-«l eB _ , '20601 and 94.9 VHF 

EBU Cnncert. part Berlioz iSi. '■MUD ** Radin 1- 630 Hush Hour. 

The Living Poet. 10.40 Plainsonx tadd JJ9 Jd ,r S? B Ltrfi - . 12 - la »-■- Call In. 
the Rise or European Music iSI- U-«0 f- 03 ^ 2 * Showcaw.' 4JB Home Run. 630 
News. U.45-U-5B Tonicht's Schubert Sonar. i^k-ZS'OP. Lisreu- 738 Black Londoners 
Radio 3 VHF only— 630-7 00 a and J 50 Brcakthroush. 10 03 Laie Nbshl Ltm- 
5.45-730 PJn. Open University. 2“- Radio Z. 1235 a.m. Oues- 

n . . OSJUm from the House of Commons. 

RADIO 4 iomio« as Radio i 

... 434m, 330m. 285m and VHF London Broadgastin pr 

WS aum. News 637 hinulna We^- 4 — _ 

635 Up W Uic Hour. 730 News. T30 *.61 in and 97^1 VRk 

Today. 735 Up to the Hour i comlnu«l>. ,. sja a - m Mornins Music. 6JX3 AJf : 
8.00 News. 830 Today in.-ludim: 835 N«m-«op news. Infonnation. travel, srvri 
News hvadllnt-s, weather, pjnen. sport. rertews. 10.00 Brian Haros -Show. 
8.45 Ray CosUne with the BBC Sound ^ G , * 4® Geonw Calc* 

Archives. 930 Newt, <j nc ciart the 3 , ° c1o ‘? ‘-all. 4.00 LBC Reports con- 
Week wiih Richard Raker. 1030- Nows. u ?, l ?' ,s ;. SJW .P 1 ?* E,Ahl - , ,JB Nishtime 

10.05 Wildlife. 1030 Dallr Service. "«WS "[Bh llonvy Modlyn. 1-00-5.00 un. Nlchr 

Morning Story. 1130 News 1X35 Sister ^* Cra A,an 

Lanrontla and Brorher Bernard Pinifal R orlin 

Announcements. 12,00 wuu. a-m- 10010 

and Voum. 12.27 p.ram of Bmam 194m pod 95.8 VHF 

S?' u -“ Weather: procramme"ncws- 630 a.m. Crsham Dene'a Brvakfasi 
1 S " orl ? at .? Be - l-» The Ale here. .Show (Sf. 930 Tiro Rice iSi. 1230 Dave 
l« Womans Hour includln«2.l»i02 Cash «S«. 330 p.m. Roger Seen «s». 

Liston With Mother. 3.» 730 London Today iSi. 730 Set B.:n.k 

iff Afternoon Theatre iS). 4J5 Repeal (Si "The Great Gaiabr." 330 
5!®|T l lme - SM PM Reports.' *30 Mangle Norden'i Open Line iS.i, 930 
Down ih>; Garden Pnfli. 535 Weather: Nicky ngrnc'.s Mummy's Weekly isi. 
urou-anuno news, UQ N CW s. fcJO^Tho 1X30 K’inv Jubrs Late show fSI. 
Enchanting World of Hlnga and Bracket. ZJ0 aan. Peter Young's Night FU^it (Si. 

THIS YEAR'S 2000 Guineas form 
took another knock at Newbury 
on Saturday when those much 
vaunted three-year-olds. Camden 
Town and Formidable, never 
looked like threatening the moral 
winner, .lellaby. in the Lockinyc 
Stakes, lt now seems more than 
probable that the. classic will 
prove a particularly sub-standard 

The one and a-haif length 
runner-up in the 2000 Guineas. 
Remainder Man. could never "o 
the pace at York last week when 
■ , well-ben ten fourth behind 
Shirley Heights in the Mecca 
Dante Stakes; and foe only other 
from the first half-dozen home 
over the Rowley Mile. Persian 
Bold, was also well beaten in that 
same York race- 

Derby betting reflects foe dis- 
trust in that 2000 Guineas form 
with only the winner, Roland 
Gardens, and Admiral’s Launch 
Featuring among those quoted at 
under 20 - 1 . I shall be more than 
•unmet if the first-named, a 
colt by the specialist miter 
Dernns-Do, out of foe Skymaxtef 

sprinter. Katrinia, succeeds in 
setting the one and a-half mites 
Derby trip; but there are still 
prnunds for expecting promi. 
nent display . from Admiral's 

tS'mf” ta,en »«“»>inl. 

Admiral's Launch is a bav colt 
by Brigadier Gerard. uW 
victories included th.. Kini P . 
fosorge VI and Queen Eliza he m 

DL.rh !nQ JicJ takeS ovor ‘ho ful 
Derby distance at Ascot and ii 

out or Cutter, who has iinn-irti-d 

a =aod deal of saotfn"^'^ 

ami ^Sloop. Wh ° , " c,u ‘ ,c Torp?5 
No satisfactory evnl-<mti A . 
bus yet been given for Uij 1 dis- 
appointing showing nr Admire • 
Launch in the 2000 GuinS' hm 
nis previous running when i-m!5 
Sf th ^ Craven Stakes ?, n ut 

■" ^ b -^y 'men.™ In'hlS, S 

t!* Tor it seems prnhoh 

mat st.-iMc jockey. Willie Carso 
will opt for the Brigadier ticro: 
cnlf in pref.-reni’.- io stahlema 
Duke of Normandy, who will I 
i-epreKc-mint: the Queen. 

1 S . afternoon’s raemc 
''o'verhiimpton makes lilt 
nppeal fi'em a helling point i 
'fow. although i would noi cai 

In oppose the iujbrly raw 
Acolyte in the Oldbury Malik 
oiakes, for which there is 
maximum mini her of runne 
will? 1*4 «oinc in post. 

Aeolyte, :i well made hay fill 
Koan Rocket out of ACCii' 
did well when a close third » 
in Checker berry at Nrt 
niarket in April and any i» 
pnueinent uH that runnim; wi 
her proving difficult t 


2 .1.1 — Hiuukome Kid 

2 -1S— flrncken Lad 
'**•'3— rt'oiirageons Kinjs**'- 
W3- \rnljii**’» 

4 »7- iv! »|« 

■'= ' ' ' • fold 

cjp. i»l 

Financial Times Monday May 22 197S 

Art for the people 


If wistii'k were horses, beggars 
\»o»!d ride, it f Acs rather 

more ill. m ihe bare assertion lo 
m.ikr ihe artisi: h,. !s W hal he 
rim's, .mil in believe otherwise is 
simple- mi luted. Declared in- 
ipnlion. nn matter huw worthy, 
dues mu alwaxs bespeak actual 
j»cmcu*iiieiii. Two recent exhi- 
biUon*. huii ever, pusc rhe faini- 
Jiar iiucMions yet again. Is 
every pnuiuci nf the .vm-dutiNi 
.irtisi really Arc. 1 is an essay on 
the social iniquities of the 
asbestos industry, for example, 
(hat well might make an ofTec* 
tivc if somewhat tendentious 
polemical pamphlet. trans* 
ruogrihed into Art by the simple 
expedient uf being pinned to the 
WHIP Is propaganda trans- 
formed in any way. does it ever 
bccume more than propaganda 
for being calk-d Art? And is the 
work any the better for being 
done with ihe heart so patiently 
in the right, which is to say the 
left, place'.' Here wc may be 
more specific: is an inept draw- 
ing by Terry Atkinson, nf a 
soldier nn the Western Front, 
redeemed In its incenuous un- 
bistoneal. unimpeachably radi- 
cal sent inien to lily? 

Richard Cork's recent compila- 

tion at the Serpentine. "Art for 
Whom?" \x as steeped to the 
gills in serious purpose, a dense 
and wordy effort lo show that the 
real artisi is at the side of the 
worker in the social struggle, an 
active agent in his affairs, pre- 
pared to forego the pleasures of 
painting, drawing and making 
things, which anyway might 
tempt the unthinking into the 
sin of possession, except when 
they serve the* interests of the 

The PBI. Tor whom we must 
presume this edification was 
intended, had evidently voted 
with its feet: I had Conrad Atkin- 
son's (no relation) asbestos tract 
very much tu myself for the not 
inconsiderable time I took to 
read it. and also Stephen 
Willats’ quite neat and eleeant 
sociological diagrams, more 
ambiguous and better written 
than the usual run of these 
things, and the better for that, 
but again a heavy read and 
essentially unvisual. Primary 
school and environmental mural 
projects were well documented, 
telling us what we suspected, 
that some art teachers do their 
job well, and the children's art 
is hright and cheerful. Posters 

and a video tape carried the 
message against closing any of 
London's hospitals. 

That show is over, but now 
“ Art for Society “ at the White- 
chapel (until June IS) takes up 
the torch. It is larger and much 
mure or a mixture, containing 
not utily more tracts and pole- 
mical. but also many paintings 
and sculptures presented without 
gloss, to be taken or left as they 
are. Most are genre pieces, 
obviously included because their 
subject-matter accords with the 
social and political preferences 
of the organisers: an old miner 
in a canteen, for example, and 
a brass band on the march, both 
by Paul Waplington. and the 
mining scenes of Oliver Kit- 
bourne. who share the advan- 
tage of impeccable working-class 
credentials, but who also draw 
and paint rather well. There is 
nn reason at ail why this left- 
wing sketch club should not have 
a show from time to time, and of 
course the work will reflect the 
interests of the members, long 
on works canteens. rather 
shorter on cocktail parlies. And 
there can tie no objection lo it, 
in a free society, even though the 
work is chosen, not on merit, but 

rather for the correct thinking 
it displays. 

Attitudes, however, do not 
guarantee the art: and here it 
would seem that the more urgent 
the polemic, the poorer the art. 
A trite sequence of sub-Hearl- 
fleid collages by Chris Jennings, 
based upon the last Toir mani- 
festo, is stupifyingly witless an 
attempt at satire, an insult to 
Heartfield- Conrad Atkinson 
really does believe that the IRA 
is more sinned against than sinn- 
ing, and there is no reason to 
doubt bis sincerity; but the daub 
proclaiming his belief can only be 
excused if you too believe that 
moral fervour, no matter bow 
misbegotten or obtuse, is alone 
the criterion of excellence. 

The show is never less than 
interesting, and does include 
many excellent things: Ghisha 
Koenig's small industrial 
tableaux, and Jimmy Boyle's 
heavily be capped heads. But the 
arguments that it builds up by 
degrees: that there is no art un- 
corrupt apart from the class 
struggle; strike the right 
attitudes and you. too, can be an 
artist-hero of the revolution: 
solidarity with the cause instead 
of independence, should be 



by B. A. YOUNG 

Rod Hutchinson seems to he 
making a comer in ihe poor 
exiles of Erin, the Irish of “ the 
County Kilbura.” In Eejits he has 
collected four of them, each of 
a totally different provenance, 
and put them into a band. The 
most Irish of them is Daly the 
blind fiddler iShay llonnan), 
but since he is such a compul- 
sive liar — romancer, perhaps I 
should say — ** > s hard to know 
just how genuine his contact 
with The real Irish folk-musie 
may be. The most musical of 
them is Conner the Outer 
f Michael Carter), a student of 
apparently Straight Anglo-Saxon 
stock. Gribben (Rio Fanning), 
the manager, is from the North; 
and Danny (Eric Richard t is a 
Cockney of Irish parentage, who 
can turn on a bit of Irish when 
be does bis “act," an atrocious 
monologue called “The Irish 
Jesus Christ.” 

Mr. Hutchinson has assembled 
this disruptive quartet in an 
upper room at a pub where 
downstairs, in the Magnolia 
Room, there is a reception for 
young Conner's wedding. It 
seems (but they are ail so evasive 
you can never know the truth) 
that Conner hasn't asked them to 
play at the party, or even to meet 
the bride and the family, and 
the series of quarrels that this 
generates is the matter of the 

There is a lot of pretty inven- 
tion in the flowery language they 

Eric Richard, Rio Fanning and Shay Gorman 

speak, but there is also a distinct 
reek of midnight oil. They are 
as poetic as Shaw's Father 
Keegan addressing the grass- 
hopper. but the more poetic they 
become, the more my belief in 
them fades. 

Putting this Irish blarney 

Sadler's Wells 


aside, though. 1 thought them lighteninenl—a kind of Irish 
sharply drawn, and their differ- Christie Minstrel show. David 
ences convincingly real. Like so Leland is both director and 
many Irish problems, they arc of designer: in the former capacity 
importance only lo the Irish, I lliiok he should do something 
and it is perhaps a weakness in about the long, slow ending. The 
the play that it is devised for play finishes about five minutes 
entertainment rather than en- before the author finishes it. 


'& r 


'• a.; *<*' am** 

Jack Crabtree; The Dirty Clothes Lockers (1975) at the Whitechapel Art Gallery 

Evian, France 

Jeunes Musiciens sans Frontieres 

I wonder if there is anything of his presence. A warrior, mance style. Krishnan Nair is a borrowed front the upstairs bar 
currently in the London theatre faced with an army that com- masterly comedian as he mimes at the Wells, holding trumpery 
more thrilling to the eye, or prises his uncles and bis his lust For the supposedly sleep- replicas of the god's attributes, 
more challenging to the spirit, teachers, cannot take up arms, ing body of the heroine; Kesava This is Krishna revealing his 
than the Kathakali Dance troupe He prays for guidance, and Dev shows an ogrigb humour, cosmic form, and the majesty 
at tiie Weils. An ancient, vivid, learns that he must fight for the and Sad 3 □ am Krishnankutty a and awe-inspiring presence of 
ritualistic language tells tales sake of Justice in the world. A nightmarish ferocity, and all the god is absolutely clear in the 
of gods and heroes, battle, man. crazed with blood-lust, are performances entirely out- performance, 
murder and divine apparitions, repents and finds salvation, side the range of Western art. The .IJahabftnrato is to he seen 
Costuming of extreme splendour litese are the incidents, some and miraculous. again at the end of this week, 

clothes performers who have ‘tragic, some humorous, some No Western artist could Earlier programmes will feature 
spent ten years perfecting their very searching of our conscience, achieve what Vatkom Karuna- selections front other parts of 
art. The rewards are the which this magnificent ensemble karan does as Lord Krishna, this monumental narrative. Per- 
amazement and delight we feel from Kerala shows us. moving with serenity through the formances are slronsly recom- 

when seeing some of the gran- The players are star per- tale, as if inhabiting a different mended as an antidote to the 
dest— and some of the basest formers, one and all. and what plane of existence. At two vulgarity and shoddiness that 
— human emotions displayed in they do demands every praise moments he stands upon a stool afflicts us on ail sides, 
a theatrical form ideally attuned for" virtuosity of technique and 
i to expressing them. majesty of style. Early in the 

On Friday night the evening there is a dance for four 
| Mahabharata — or rather, brief brothers which they perform in 
I extracts from it— was on view. A unison for five minutes; a 
| man gambles away his four glorious sequence of ctaoreo 

Two playwrights join Thames TV scheme 

. _ Thames Television has an- Hutchinson by the Royal Shake- 

brothers and their common wife: grapby develops in speed and n0U nced that two more plav- speare Theatre. Aldxvych. 
a lustful villain Jays comic siege complexity as hands flash in K „__ ‘ The Thames Scheme-run 

to a woman, and is filleted for gestures of exquisite refinement n *ve oeen nominated o through the company's com- 

his pains, and we see the lady's feet pound and stamp while Join Playwright Scheme. m jttee for grants to hte arts and 

husband eat the villain’s entrails beneath golden, haloed head- They are Leigh Jackson (27), sciences — offers £2,000 to the 

.and smear bis wroDged 'wire’s dresses, eyes and brows flicker author of Eclipse and Ron sponsoring theatre to encourage 

French music festivals appear students at the Prague Academy resident Talich Quartet on the appeared uninvolved by the pro-;hair with them lo expunge the in an extraordinary counterpoint n 11 „.|.t nwwi cm a „iw rf the development of promising 

to be suffering from a crisis of of Music, gave a performance of evening 1 arrived. ceedings— but I should not have | insult. The Lord Krishna mani- of meaning. It is uniquely beau- V 3 /’ dUUlc,r or says, dramatic talent, bv selecting a 

identity, and not before time. Dvorak's A flat Quartet. Op. 105 There was also a German been deceived. They were merely J fests himself, radiant, all- tiful. There are wonderful con- 1 Jackson is sponsored playwright for a twelvemonth 

Their purposeless proliferation of such startling euhesian. foroe group, the Youth Orchestra of saving their energy to accord • powerful, and we sense the glory tracts of scene, and of perfor- by the Royal Court Theatre and attachment to the theatre, 

iv well summed up by a xv ri ter in and passion that it was easy to the German Federal Republic, Weissenberg his obligatory) 




CC — Tkw the«ui 
cards bv lele 

actant certain credit 

pnone or at tne box office. 


ihf May issue uf Ihe music muga- understand why the jury.had not who gave the Festival's closing accolade, two encores as a mini 

/me Ihtsimson. who complains only given them first prize, but concert in' tlie (again too small) mum. before drifting away to 

"il n'esl plus gum* possible, an had withheld the second prize, hall of the Casino Royal. This spend what was left of the even- 
mois dtt jtullel. de faire 20 kiiu- Their playing had a maturity far remarkable band, under Volker ing (after protracted prize-giving 
met res dti suil la Lon e sans ren- riper lhan that or the other two Wangcnheim.' displayed :n speeches and the inevitable late 

■■iinirrr tin festival. On enmpivml quartets I hoard. embryo all the qualities we have start) in the .Casino or its disco. 

l»n*n siir il 1 * motivations ilel tel -n, e Lyra Qua riot, .i rather come to associate vx’ith German No blame to the Casino: it was ! coliseum, oeen earoi 01-240 szss. 
prnpni-latrc. tie lei cure ik- cant- 0 ij v . r sroup formed from mem- orchestra technique: rich string that organisation which provided ! en^ush^natVor^l opera 
pauin*. do tol nnlaidr desireiiv | >t , rs n f |h c Uotnaninn Radio and sounds underpinned by weighty, the Festival's finance and; Ton-*, mo Thur. 7.30 Tomor. 
d'jninier tpii Min manoir I.i»uip Toil-vision Svmphnnv Orchestra, booming basses: a thickness accommodation; but the social! jilTd 7 ’JS c2Jnt T Sv. Fo io4 fl t»jii«w 
Kill, xpii <» ehapeUe du Xllc u „ n ^0 p r ' w * pyl'ic for their throughout the uiidd>- register of background of French concert-! ■*» .**! *”0? ‘umSon season^Tv 
sii'H’lo. qti) so rem parts cm »es ;ifC ounl of Serbnn Nichifor's wind and brass wh ! ch makes going di?s hard. For us, it was! 29% juU^fo the Stuttgart ballet 

ruim-s. tVpi-ndanl. nVst-ce pa-* ,]j„.„imphnsc — they projected clarity uf texture impossible Jo back to the hotel— a stupendous ! cvent garden. cc. 240 10s* 

allot* trup loin quo dc baptise r ^, 1S collage of 20th-century achieve: and a full-throated oasis of- luxury high above the; iG*rdencharge £ES l i 1 c i r S*»2 36 6903 
pom pc use mo in ' festival ' im ,| U;ir tet gimmicks precisely but unanimity of ensemble Their Geneva lake, maintaining every 

recital dc furganiste local, un w tthout panache: only me dis- playing was impressive but inch of its turn-of-the-century 

concert de la chorale oil rle p t , rj , a ] u f the members to Iho dislikeable, especially when they splendour, looking with patronis- 

I'h.irnmnii- municipale pour four cor ners of the luncomfort- bad chosen aj> concerto boloist ing indulgence upon the scutter- 

altrupvr le louriste en mat dc a jj|y sina j|> h a |i U ( ih e end was Alexis Wivsen.xc— hr an ing invasions of noisy young 

culture?*' wittily done. The Haxlafc Quat^ account of Beethoven’s Fourth foreign musicians, and biding its 

Al Evian. a watering-place W trt from Czechoslovakia like ’he Concerto which was rarely pre- time until the Season should fill 
mi nuies o«» uf Geneva on the pmzak. gave Janacck's First else, seemingly uncommitted and its rooms xvitn the auieter dignity 
southern side of the lake, things Q ( iartr-t: a biting, impassioned completely uninvolvine. o r those seeking the Cure in its 

.ue refreshingly different. For aoC oum. bin without any saphls- The French audience too Waters, 
the last three years Serge ii C ation of tone from the 

Xehnacher has managed to run individual players; they lacked ... rB 

a festival with point and pur- nolhing in una/iimily and every- EfjzaOetJl Hafl 
po-:p: his “ Jeunes Musiciens sans in warmth 

Frnnlierrs " may ni»J be CW The Eastern European hias of y . 

: competition, though J Q g| Br^SS 

sfuild, -if round of recitals. The unintentional. «.■'« evident *9 1^1 UULJ 

CRITERION. Credit Caron. 930 3216. 
Evening* B.O Sats. 5.30. 8.30. Thur. 3.0. 
■■ VERY FUNNY.” Sun. Trl. 

, tus been tn combine a fesli- throughout the Festival- Eleven 

v.d uf vouth orchestras xvilh a countries in all were repre- The London Music Di 
limn for vouns siring Rented, hut the tally was concert on Friday night 
— j ...» .... Czechoslovakia devoted *- ~ — 

while the orchestras dominated 

Digest’s beautifully played, darkly stir- 
was ring; and Hans Werner Henze’s 
music for Ragtimes and Habaneras, decat- 

reside nt siring quartet) and a (who were represented by a sent mentor and conductor There were two new arrange- 
nn v of critics. student orchestra from Sofia i and Elgar Howarth; for brass quin- meats also, both by Howartir. of 

. ....... \i-.v Lonperl repre- Romania (who provided the tet, played by Philip Jones and Tippett's short Praeludium fur 

riHilu-ralu-ns insiead uf tiie com- ducted in Hip onpn'nc roncert. pieces were already familiar: scored for 



Thi prazak Quartet from Czech'o- warm, languorous account of the harmonies 
•.Impkla. founded in 1M72 from Mozart Clarinet Quintet with the shadows of 


BR\CKE\ UuLMu til, CAA.Mt.x MKr.E». LOrtOUA KUP 4BY ... 

Telex: Editorial RKSS41/2. SS3W97 Advertisements: SSS033 1 elegrams: Flnantimo. London PS4 

Telephone: 0!-24S SOW 

For Share Index and Business News Sum mao' to Lonmm, Birmingh am , 

Liverpool and Manchester, Tel: MB ™*8- 


■sM.swjaghar *™ t 

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Kirniiiikba— - ... «.«, 

lelex 338650 Tel: BSMS4 IB22 
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SUBSCRIPTIONS § . hontstalb worldwido nr on regular subscript km 

«*»toinahta fi rro» Tf ““’ 

ALMOST FnEi. ABS 6224. ■■ D-na"’ 

SrauiW'-’ W. Ald'u Tu«.- 

Sats. 1.1 ■ o Suns. S210 ana S-OODin 
No snc>* Moncttjr*. 

and menaeinq Two Jones Ensemble trumpets 
tuba arid trombone, framed the first half with 
Stravinsky's spiky Fanfare for 
a new theatre, blown from the 
balcony. The quintet together 
also gave very fine accounts of 
Henze's Fragments from a shoic 
— a satisfying virtuoso study 
concocted from the composer's 
dramatic cantata Xatasha 
Ungeheuer; and of Birtwistle’s 
choral fragment Chorales from a 
toyshop, tiny precis of the 
spareness and hard briliance of 
the orchestration of the opera 
Punch and Jud\i. 

It was the intention of the 

evening to give “some idea o';^ 

the new possibilities in the brass :* RTS ™ £ %m stdpparcts 

rnPrliiim miirh mnrA VAriori than i DIRTY LINEN 

Tonight «i»0 Fridw: 7.30 Peter Grimes 
Wm. and Sat.: 7.30 RlBoletw. Thuri 
6.00 Tristan uM Isolde. 65 Amphr 
feats avail lor aH perts. Irom 10 a.m. 
btv oty oi oert, 

28 io Aug. 7 with Hw Lonoon Phi/. 
harmonic Orchestra. May 28. SO. Junj 

1 ana 3 at 5.30: Die ZauQerrtole. June 

2 and 4 at 5.30: Dan G'Ovanm. Passinle 
rotu-ns ori» Box Once, dvndanournc. 
Lewes. E Sussmi. (0273 812 411.J 

A»e„ ec-1. 8IT t672. Last Weee 

Dancers Irom Kerala. India. Evgv a> 
7_Su. Tonignt. Tomorrow and W<a.. The 
Sons o' Panda. Hlur.: The Ramavana. 
" EnormoLiiv lhaableal. and lun . 
very jpiendld entertainment." Guardi in. 
Mav rf to June 3 BALLET INTER- 


ADELPHI THEATRE. CC 01-836 7611. 
Evgs. 7-10. Mata. Thurv 3.0. Sats. 4.0 

o' 1976. 1»77 ithi 1978 ! 


Sundry Peoole. 


night 8.00. Mannec wed. and Sat. 3.00. 

'' A rare, derastatiiig. joyous, astonishing 

stunner " Su nday Times- 

DUCHESS. 326 8243. Mon. ID Thur*. 
Ergs. a.OO. Fil Sal. 6 15 ana 9 0° 

Thi Nuaity i* stunning Daily Tel. 
8th Sensational Year. 

DUKE OF YORK'S! 01-836 5122. 

Evgs. 8. Mat. Wed - Sat. at 3.00. 
in Julian Mitchell's 
Brllh-n-l. aiitty no one should 

miss it." Harold Hobson (Drama i. Instant 
tr.ail wto •eser*-- v"s Dinner and 
too- price scat £7.00, 

OLD VIC. 92B 7616. 

Mav 22-27 

Direct Irom the Theatre Antonie. Paris 
wrth Jean Marais and Lila Kedrora. 
Simultaneous translation. Today at 7 p m 
Tues.-SaV 7.30. 5aT. Mat. 2.30. 

May 29-June 3 

The International Turfcfch P/ayerj in 
TN7 TURKISH GLOGS by Netall Cumall. 
A musical comedy in English, based on 
a Turfrish classic. 


ST. MARTIN'S. CC. 836 1 443. Evgs. 8-00. 
Mat. Tues. 2.45 Sats. 5 and B- 


TALK OF THE TOWN. CC. 734 6051. 
8.00 Pinto?. Dancing. 9.30 5uuer Revue 
■ Bars ocen at 7 15 p.m.i 
ar.O at 11 om. 



Ever mg* 7.30 p.m 


FORTUNE. 336 2238. Eves. 8.0. Thur. 3 
Sat. 5.00 and 8.00. 

Muriel Pillow as MISS MARPLE In 

Third Great Year 

'01-836 4601 


Evgs. 8.0. Mat. Wed 3.0. Sal 5.30 a. 30 


rt H , ^. E 5^ U T S J , 2fe Y w R,CH work" 

Gdn. N OT T O BE M ISSED ~ T.mea 
GLOBE THE ATPE. 0T.dJ7"l5r:2 

E*a* 6.1 5. wed. 3.0. Sai g O. a. an 

* lAN TSHgSrijB*-- 

Tins must he the hanmest taugnier- 
; U? ker ,n L p{HJdn." D. Tel. " An in-esist- 
( JMy enjoyable evening.- Sunday TlmeL 

ALRKRY. 8 3G 5878. Party Rate*. Credit 
card bfcd*. 836 4971-2 from 8.30 a.m - 
8.30 D.m. Mon- Tam_. Wea and Frl 
7.45 n.m Thun, and Sat. 4 30 and 8.00 


ABLE TO SEE IT AGAIN.” Dally Mirror 

ALDWYCH 836 6404 lido BK 5332 
lepfftai'r TentahL tomor. 7.30 last 2 
oerft. HENRY V. - G'Orlnu* ole's o' 
■o-k.” T Wl’h- HENRY VT Part 1 
IWed.t. Part 2 fTImrc.), Part 3 rFrl t 
Final orrn Trloloov Day Sat. rsnld out! 
under W and *1 Piccadilly Theatre in 


N.ghtlv a! *iPgs, Mat. Wed*. 2.45 
Sail. 5.00 ano 6.QD. 

g,, world-famous Thriller 
- Seems me oUv aoam I* In tact an 
Otter and total iw.” Punch. Sen Pncw 
£2 00 fo ^ a £: , 9*J»iNr and Too 

E7 »50. 

apollo. 01-437 2663. Evenlngt 8.00 
Man Thur*. 5.®#. 5-1 S-DO and 8-00 
Actor at Ute Year. Iy. stand. 

“■ IS SUPERB.- n.o.W. 

- W |CKEOLY FUNNY - Times. 

-836 2132 


Me if Sun ear lime* 

medium, much more varied than 

is generally supposed.” It wasj -rW«aV '^roday'"^ 

left lo Vinko Glohakar to cham-! siiur B"-*-!-" 

pion some of the newest brass Jastobia 

tecnmques: in his own Res/as/ \ VJ«r«i tube Toitonham c«. Rn Mon- 
er/ins-pirer, a remarkable body-] p .- m - Frl s-t- 600 


Evenings 7 30. 

BSS 775S 

Mat. Sats. 2.30. 

A play bv Don Taylor. 

HALF MOON THEA TRE. 4 BO 64651488 

- . bv Dario Fo 

British Premiere Mon. 22 Mav at 7 o.i 

*3 May-17 June at S p.m. 

M A Y M ARKET. Q1-B30 9822 Evgs. B OO. 
Mits - Wed. 2.30 . Sm. 4.30 and 800. 



n;lr rJ or ?. or complete capacity 
»rd record making snow Must unlor 
Innate l> hn-sn on j u iy 1st owing ri 
com mitin rats or Miss Bergman ana Damr 

Wend t Miller. ■ 

HER MAJESTY 5. CC 01-830 6606 
Evenings B.OD Mats, wed A n*. 3 00 
with 0*rek GrlUitns 
!r s Packen to bursting Doini with 
me ornronality anc shrer energ. tA Brure 
Forsyth " Sun. E>nn-ss. " The audience 
cheered " Sunday Telegraph. 

Mon. to Thors. 9.0. Frl Sal. 7 30 9.30 

Opening this Thursday at 7.0 lor the 
Summer Season (to August tg only) 
Sub* Mon . Tues.. Thurs. and Fri. at 8. 
Weds, and Si's at 6 10 and 8-50. 
tn a socctacdlar 
£4.50 £3.75. £3.00. £2.50. £1.50 

S pecial Boobing Hotline 01-437 2055. 

LYRIC THEATRE. CC 01-437 3BB6.-t7 
8-00. Mat. Trurj. 3.0. bal 5.0 and 6-30 
colin Blakely 

HUNDRED YEAR* '• Sunday Times. 

blast of trombone breathworks. 
inhaled and exhaled, exhilarat- 
ing for its physical presence: 


Instant credit cird boofctno. MAY FAIR. . . CC 629 3036. 

ELVIS - ! Mon. to Frl. 8.0. SaL 5.30 and 8.4 S. 

Infection* toot-Womnlng ihtJS GORDON _C“ATER„"_BriU!ant A " C.N. in 

I Scat 


and in a masterly account 
Berio’s fifth Sequent, wryly j 
humorous, brilhantv c-mainmi I best musical . - ot the ■year 

ftcjrt- thumping otaerver 

i< prlet»,„^S®; Jt 5- 5 0- Dinner- Top 

me trl' £8.SD Hait-hopr before show 
OT aiUble _ Md-orlce tiekm E2.S0. 


ENO North 

Tan Killfk has,>^en appointed 
orchestral manBfier for Tvnnti«h 
.National Opera North ami John 
PryceJones rhoms master. 

Ian KiUlk joins the company 
from London Festival Ballet 
while John Pryee-Jones has been 
associated with the Welsh 
National Opera for several 


rAMBRtOG% e3 S WM* MOn to Thur*. 

» F " i)? t roMR.* nd ■” 
ExciffB Black African Musical 
" The fl" 4 * *** .P**utlhil bare and 
t-ounemg." S_ Mirror. 

pinner and tqp-prtea s— t £8.75 Incl. 

e Kgro- « «. jfvV 

May 27 i' r 5 M ™* WOMAN OF NO 
impo rtance- 


“■"ss g iag, av.“" 

BlieJrmall .? J^8b*fy. double bluff 
and murder- »'m«. a dood deal or 
(nn. Evening Nawa. 

' Brilliant.' 

Bv Sieve J- Spe»rs 

■■A com pit donate lunny harccly rtocucni 
plav." Gdn. -HilarlblK.'' EStd. -WiCbedly 
amusing " E. News. "Spellbind mg." Ohi 
Special Mat. Tomor. 3.0. Norm. Prices. 

MERMAID. 248 7656 Restaurant 248 
2835 Wee. Id 5a!. 8.30- Mm, Wed.. 
fn. and S*I al 5.45 
Ever* Mon and Tues. at B.IS o.m. 
ate-: McCowen't 
[Suns, a: 7.30 a m all teats sold! 
Prcf* June 13. Opens June Id. 

Subs 7 3D and 0. IS. 

A P>ere tor A rtors and Onhniri 


OLIVIER lopcn sraaei: Ton't. 7 30 THE 
CHERRY ORCHARD By ChefchO* trans- 
py M.chaei Frayn. Sat. 7 30 Marbcth. 
LYTTELTON fproSrenlum stage); Wed. 
7-45 Thur. 5 and MS (red. pr. prevs ) 
PLUNDER hv Ben Travers. 

COTTtSLOE (small audltortam); Ton t. 
and Tomor. S LOST WORLDS hv Wilson 

S mn Haire. Many e»o*Uei£ cheap seats 
I S theatres day Ot pert. Car park. 
Restaurant 920 2O33^ Crcdlt card bkgs. 

OPEN AIR. Regent's Park. 486 2431 • 
fn.^ , ?^ UMK L ER NIGHrs DREAM Irom. 

* rd the DARK LADY OF 
the SONNETS loins repertoire July 1 7- 

PHOENIX. 01.836 2294 Evenmoj B.15. 
Frldiy and Saturday 6.00 and 8.40 
GARDEN make us laugh” D Mall in 
The Hit Comedy by ROYCE RYTON 
•JAVE 'DIED ' Sun Times “SHEER 

P Ks A VovS Y V 4 l 7 « SOS. Credit caru ofcnv 
818 197J-3 from B IO a.m -B 59 P m 
Evgs a. Sat. 4 45 and B.15 Wed mat 3 
RtvbI Shake-ceare Company i" 

bv Peter Nlchoft 
.. b ' *"'Y*tes on PARADE 
Rmroarlng trlumnh. " S F\pr(*-s 

5 ! d rd . .aiw s W E T Award 

RSC aho at the ila-wli and Warehouse 

VAUDEVILLE. 035 S3oS CC Evg». at 8.00 
Mat. Tuei. 2.45. Sai 5 ana B. 

. Dmah SHERIDAN. Cuk.e GRAY 
•' Re-emer Aga'ha with .mother who- 
dunnit mt. Agatha Christie Is stalking the 
West Er.n y« again mih andiner ot her 
fiendlanlv lincn.ous murder mvsleneS.'* 
Fell* Barker. Even. no News. 


Boalc Now. 825 473S-6 834 1317. 


Evgs. 7.30. Mats Wed and Sal. 2.3 5. 

WAREHOUSE. Oonmar Theatre. Covent 
Garden. 836 6B0B Royal Shakespeare 
Company Tent B OO Strlndberfl'i THE 
DANCE OF DEATH Isold out*. Transfers 
la Aldwvch Theatre 13 June. 

WESTMINSTER. 01-B34 0283. 

br Malcolm Muggeridg? B. Alan Thornhill 
Evenings 7 45. 

Matinees Wed 3 0. Sal 4.3 0- " t wa* 

J snerpiv moved Ov the performance of 

OF WALES. CC. 01-930 8631 John Bvrpn.'* J. C. T-ewIn. 


01-437 6877. Red. Dr Ice prevs. June 

12. 13 and 20 B.OO June 17 5.30 and 
0.50 Oaens June 21 

PRINCE OF WALES. CC. 01-030 9681 j 
Monday lo Friday at 8 p rn 
Saturdays at 5.30 and n 45 

starrlim ROBIN ASKWfTH 
Dally Express, 


■W I TEH ALL. _ 01 -93d 6692-7765. 

Fvas p 3n. f n and Sar 6.45 and 9.00. 
Paul Raymond presents the Sensational 
Sex Revue at th? Century 

QUEEN'S THEATRE; CC^ 01-734 1166 
Evgs. »00 A W^ o 3.00 Q Sa ; . v S t .o an d 8 30 

the old COUNTRY 
p,a ”. *"«* Player* London Criti£s Award 

RAYMOND REVUCBAR. CC. 01.734 1393 
- P7? V om 1 1 om 1 ptH-n 5un ■ 
_ „ ' EROTICA 

Fullv Air-Conditioned You mav gunk 
and smrUe In the audtorium 
OF '■-ENT THEATRE - ' ' 637 9863 

Mn"5 -Thur*. 8-30. Fr| 6 00 and 8 45 
"Elegant, good hwmginred cnganing,-- Gun 

A new musical 
"CauFtir and Comic Timn 
"Show wore* in song*.— d T-l. 

"Unda Thorsen . a revei a ti 0 n - t mn 

ROYAL COURT 730 174 5 

Evenlnnc 8.00 Sit. at a. So 
bv Su do wiison. world Premiere 

**Bril*ian: comic wntin? " Times 

Due >0 

overwhelming oublic demand 
Season extended. 

-/INP**" L THEATRE CC. 01-437 6312. 
Twice NiaMly B 00 and 10.00. 
Onen Sundays 6 00 and 8-00. 



” Ta5>*t. Id unurrcDdynled limits what '» 
permissibte on rur stage." Evg News. 
Y iu mav d r rl **4 smoke in the 

V'VNDHAU-s. m.ti 6 1028 Credit Card 
RVos. BX6 MV71-7 from 8 30 a.m. to 
8.50 P m. Mo* .Thum R Frl amt SaL 
5 '5. B.2Q. 

VERY FIINNY" Evenina New*. 
Mary O’M - fl—v's <iti»h-lilt Comedy 

“ Suo'emr r --n»H V «■« -e» and religion.*' 
I3»ilv Telenraph. 

"Mavp* vr>j SHawif WITH 
LA LIGHTER " Guardian 


ARC 2. Chatterhnry Ave. 836 0851. 

Sen. Parts ALL SEAT* BKBLE. 
t- THB rsooD»YE G»RL fAi Wk. and 
Sun : 2 00 5.10. B 10 Clait 3 daysi. 

»■ FWEENEY 2 (AA) Wk. and Sun.: 
2.00. 5.10. 8.TO. 

’■ **r , £N PLAZA >opP Camden Town 
Tubei. 485 2443. Briprtte Fosiev in 
Enfant? du Placard IAA*. 3.D5. 5.00. 
TOO 9.05 11.00. 

ROYALTY. Credit Card*. 

Mnndiv- Thursday evening* 8.00 Ffidw 
5.30 and B-45. Saturday* 3. 00 and B OO 
Lnndon rrltir* vgin 
BU»vi.l«r PwoWhl 5ll>1AR 
Best Musical of 1977 
Bnnkinqs ai-CODtod Malnr 11*4,1 ca-d* 
Special reduced rales tor meilnee* tor 
a limited period only 

CLAesiC T, 2. 3. 4, Orford SI. fQDp. 
Tot-cnham Court Bd. tube!. 636 0310. 
I I-JartM-rrl't iROO Part 1 rXI. Proas. 
Dt-405 5004 ; 2 -1 ? - ? L 5, B- 15 - 

_ p* Last 3 dairt* Jnhn Thaw. Dennis 

W»terman SWCENFY 2 CAAI. 

OF , ™ E <»DS (UJ. PTOBS- 
2.00. 4.55 7 55 

3. Last 3 a art. H»nrv Winkler HEROES 
fAAl. Proas. 1 15. 3 40. 6.05. 8.30. 
4- Jerinli.-trs *9no Part 2 CXL Progs, 
2.30. 5J70. B.15 

5AWtY. OI-at^aSRE Even, nos BOO 
Mat. Wed. 1 00. SaL 6.30 8. 30 
R Al ph 0 ICHn-»D5OV 
Michael GAMBDN. Miri-ael javvinN 
Gary BOND manna van GY 5EGHEM 

Gnn“rey KF*N In 



|C'<»Yftn|. Cur'nn S'reei. W 1. 499 3737^ 
! MO,U fXl English 

! 3.55 fi TQ. and 8 3 0 Last Weeks 

te-YFCTTR cni’ARE THEATRE rgtO 5252) 
sni'iny Mari.ame Amy. Bancroft. 
Mikhail Baryshnikov in a Herbert Ron 
►Im THr THONINR point (A I. Progs. 
Wk 1 05. 4.30. 8.10. 


Oo#ni»n June 13 TOM CONTI to 

TO SEE IT." Gdn 

Evgs. at BO. Friday and Saturday 
5 46 and 8-45- 

Shaftesbury 4ve WC2 iHtoh Hottgrn end' 
Evu*. at 8 00 Mats. Thur* . s«* 1 00 

EVERYTHIN! - . “ 5 Mirror. 

OriFON. Mnumirfcet {930 273B 2T71.1 
Jane Fonda. Vanessa Redo rave in a 
Fred -Zinnenuinn film 'UL>A {Al. Seo. 
•’jogs DJv. > -,0. 5 45. BAS. Feature 
D'v- 2 4 5. 6.00. 9.00. All seats blcble 
at Theatre. 

QURAN, Leicester Snuare. fR30 G111.1 

KiNQ IA) Scd Proas Dly. DAO'S open 

1 05. 4 15. 7.45. IW show Frl? * 
Sat nno-s onen 11.15 p.m. All seats 
m»v he booked. 

O nr <1N M.-bip Arrh. fVSJ 2011.2.) 

TMr prr«Y rjci. Sm». progs. Mon.-Sat. 
1 30. 4 4S BIS All sells bkbie CKCept 
v?f> p»rt Mon. -Sat 

SHAW THEATRE. 01.588 1 S94 

Evg*. 7.30. Mats Tun* and Thurt 2.30 


..jftnMM Wesker's Classic 
Still stirs the heart.” o Tel. 

LOW prices. Easy pwWhfl 

PP’NCE CH*JILCS. LcK 5o. 437 B181. 

Mult End Miy 24 SWEPT AWAY IX). 
5*0 P*Hs. Dlv. fine Sun >. 2 10. 5J5. 
R.40 Sea's Ruble t.te'fl Bar. From May 
75 M"l Brnnlrs Hi ran ANXIETY fAJ. 
bos OHiCe Now Open, 

STRAND. 01 -BAG 2660. Events 8.00 | 5 44 70 C . W^y^AtlwC’^ERYTOlldG 

ABOUT _5EX f*i. 250 . 6 00. 945. 

Mat. TWn !JO SjiWto 5.3, g. 8.30 

™9 Sfin PLEASE— 

we-rs BRmS- 
GOOD SEATS £4 00-C1 SO. 


10789 2271.1 

Rovai shakes- 


BANANAS (AA) 1.15, 4.25. 7.40. 

STUDIO 2. 3 & 4. Oirtord Cirrus. 437 
3300 2- THE GOODBYE, GIRL (Al. 

Progs. 12.4S. 2.45. 5.25. 8.05. 3 

IPHIGEN'A (Al. 12 45. 3.20. S^S' 

june l T ?*mair^'l s’^mafl j S'.?|. W 

VHE TEMPEST May 2S (mat). ju* B 
OWL). 12. n| 1S. {( 15. 9 R«grued bbbklng 


1 S SS5 ?*U. , I, .. 437 3300T 

I IPHIGENiA (A) 1 2 . 45 , 320 , SJ 5 , 8.30 


, - 1 

Financial Times Monday May 22 197S 


Telegrams: Finantimo, London PS4. Telex: 886341/2, 883887 
Telephone: 01-24S 8000 

Monday May 22 19 7S 

How yen 

1 M 

By CHARLES SMITH, Far East Editor, in Tokyo 

gui oir lo a thoroughly unsatis- 
factory start in tile markets, 
and not without reason. It has 
now become clear that the con- 
trol of the money supply last 
year was altogether too relaxed, 
because the authorities did not 
give enough weight to the forces 
making for expansion, and this 
has naturally undermined con- 
fidence both in their determin- 
ation to control it in future and 
their competence to do so. The 
money growth in April itself 
sets a target for the current 
year some 2 per cent higher 
than the Chancellor can have 
had in mind when he laid it 
(iubn, yet there is no sign that 
the target i; to be adjusted to 
compensate for this: .vet to treat 
p:i<t errors a< so much water 
under the bridge is the very 
abuse of rolling targets which 
their critics always feared. 
Meanwhile, no progress is being 
made in funding a borrowin'! 
rivjir re men t s!;c!i fly e nia rged 
by the rise in interest rates. 


The City's reaction to these 
pienls is. pus-dbly. exaggerated. 

Some comment now being eir- 
pillared recalls the crisis days 
m l97fi. or suggests that the 
failures already recorded must 
irret rip; ably cause an increase 
in tnJlaiiiiii in due course. 
However, money figures at 
present overstate the underlying 
tr-'M almost as much as the 
earlier ficuro-i for M3, the sole 
espial measure, understated 
tb rt m. The April money simply 
v:k still swol’on hy carl'cr 
f.n-eign imlows. which have 
fu'^cqueiiliy been reversed 'to 
<or»' event. The pMe-up of 
i ! n**iiiitv in the hand? of the 
?n*»\i*e , hins van bn mopped \io 
l?v <tiiflici u mly determined and 
fir'v action in the markets. 
P , .j\’ded that action is not tno 
long delayed — fnr every week 
increases the weight of un- 
funded burrowing — both the 
nvippv supply and the Growth 
i«f dome -tic credit, which is 
l’fc-'y *o prove the hauler test, 
iv-i -t »H he brought ba> k w ! Mi ! n 
«i ;b: tit any rate of their 
dc »n.'d level?. 

The cost, however, wili be 
fnr bidding. Interest rates 
approaching 13 per cent ou long 
-lock are no trivial burden on 
the taxpayer when the prospect 
is that effective credit Control 
and the underlying strength nf 
the oil account of the balance 
nf payments hold out a real 
pro- poet nf reducing long-term 
:ii lint ion below the levels it has 
new reached. 

Moreover, until a resumption 
of funding has been achieved, 
the present level of liquidity in 
the economy dangerously 
weakens official control both 
over the exchange rate and the 
level of demand. A pair of 
crossed fingers Is no substitute 
fnr management, and figures 
distorted by mismanagement 
obscure the evidence that is 
needed fnr sound judgment. 

An improvement in existing 
funding methods is therefore 
urgently needed to reduce econ- 
omic risks, real costs, and to 
allow the system to function 
smoothly enough to provide the 
early warnings which a well 
managed system signals so 
Clearly. The simplest improve 
ment would he to respond far 
more promptly to market pres- 
sures. When repeated experience 
show- that prolonged pauses in 
funding lead inevitably to large 
jumps in interest rate?, it ;s not 
even sound electioneering to 
hold nut against the market for 
week after week. 

However, there are always 
bound to be times when con- 
fidence is weak, even if these 
crises are not self-inflicted, like 
The present one. A more imagin- 
ative approach to funding, with 
a wider choice of securities, bet- 
ter tailored to the needs of par- 
ticular investors, would certunly 
help. Securities to reassure the 
nervous are especially lacking. 
The terms of the floating-rate 
bond launched last year should 
be reconsidered, and other pos- 
sibilities of offering some under- 
lying real value remain untried. 


Once a functioning marker 
has been restored, it will be- 
come possible to judse again 
whether the Government’s in- 
tended borrowing requirement 
can be funded without undue 
pressure, and interest rates 
which hamper recovery. This 
seems on the whole improbable, 
with consumer spending now 
rising strongly, and production 
beginning to respond. As a 
first 'step, the Chancellor should 
end the ambiguity about 
whether steps will be taken to 
finance the tax cuts voted by 
Parliament: the borrowing re- 
quirement was at the extreme 
limit of plausibility before the 
cuts and the rise in the cost of 
debt service. Later in the year, 
if private sector growth con- 
tinues. it may not only be the 
monetary targets which need 
review. On his past record, the 
Chancellor may still have time 
for a fourteenth Budget. 

Peru aft< 
the IMF 

THE lU'TLOOK lor a peaceful 
return to civilian rule and an 
.u-iain-L- limard> democracy in 
j\ ;•» w.i- cioin|i*il on Saturday 
i.ii'ii. Fruncfsco Morales 

ft -Tnr.idiV. the President, irn- 

p.i-vd a slate of tniKTgifiiry. His 
J-.v’Mon mines ai the end of a 
il.Thcu'T decade. 

in isids ihe army look con- 
trol of the mini try oul of the 
hand- ot the elected civilian 
j'l’v.-idvnt. Sr. Fernando 
Letaunde. when it reemed that 
i he in i'U'nii liable wrangling? or 
Parliament wore doing little or 
nothin-: to modernise and 
-h i'll.- then a backward and raci- 
a |v divided society. 

i'he mil nary strong man who 
su.\ ceded Sr. Belaunde. lien, 
-l-.ian Velasco. <lt-d much to 
lij-inu IVru into the 2»llh century 
and when Peruvian history 
cauiCb to be wniicn ins tenn of 
«i, ‘ice isiav well be seen as one 
„i the iih's-i important. 

U tokening 

Two years ago. however, his 
efforts were scon to be weaken- 
ing and he was toppled in a 
bloodless coup by Gen. Morales, 
j more cautious, can.servai.ive 
a ad Jess ambitious soldier. Gen. 
Morales' lerai of office has 
coincided with severe balance 
of payments difficulties caused 
principally hy the fall in the 
price of many of the country's 
export items and compounded 
by the heavy bills incurred by 
Gen. Velasco'S development 
prog rani me and arms purchases. 

As foreign reserves melted 
away, the private hanks attemp- 
ted to mount a financial rescue 
operation but this was not suc- 
cessful and last year Gen. 
Morales- who had by now de- 
eded that the army should start 
refirnin:: to its barracks, was 
obliged to treat with the inter- 
na: : onsU Monetary; Fund. 

The term? vlucli tno Fund 
sought to impose on Peru have 

T HE Japanese economy has 
not been crippled . by the 
30 per cent appreciation of 
the yen against the dollar that 
has occurred over the past 16 
months. It would probably be 
truer to say that Its long term 
ability to compete in world 
markets for sophisticated in- 
dustrial goods has been 
strengthened appreciably — 
always assuming that Japanese 
businessmen can keep up with 
the rate of change imposed by 
revaluation. This conclusion is 
beginning to emerge from 
studies of the effects of revalua- 
tion being made in government 
agencies some six months after 
it was generally claimed that 
a sharp upward movement of 
the yen would plunge Japan 
back into recession. 

The more optimistic mood 
which is being voiced both in 
the Government and outside 
can be interpreted in part as a 
natural swing of the pendulum 
away from last autumn's 
exaggerated pessimism about 
the impact of yen revaluation. 
When the yen-dullar rate 
started to move in favour of 
the yen at the rate of about 10 
points per month from the end 
□f September onwards, the 
initial reaction was that one of 
the basic certainties of 
Japanese economic life — a pre- 
dictable though not a stable 
exchange rate— had been swept 

Companies which had been 
calculating their dollar-based 
export prices on the basis of 
an assumed rate of yen appre- 
ciation suddenly found then- 
selves faced with roughly 
double the rate of appreciation 
they bad expected and with 
correspondingly big cuts into 
profits on their exports. 
Japanese politicians, from the 
Prime Minister. Mr. Takeo 
Fukuda, downwards, fanned the 
agitation with frequent predic- 
tions that hopes of achieving a 
real economic recovery in 1978 
would be fatally damaged if the 
U.S. failed lo stabilise the dollar 
and helped Japan “ bold down " 
the yen. 

A second and lesser wave of 
panic occurred early in April 
when the yen, after holding 
fairly steady in the first two 
months of the year, suddenly 
put on another 8 points against - 
the dollar within a week (to the : 
historical peak of SI - equals 
Y218, from which it has since 
retreated to a more moderate 
SI equals Y227.375). By that 1 
time, however, the message was 
starting to get through that the 
impact of the initial bout of 
yen-dollar appreciation had 
been less disastrous than feared. 

Key economic indicators such 
as the industrial production and 
manufactured goods shipments 
indices, which had been dipping 
v/onyingly during the late 
summer of 1977 (before the yen . 
appreciation really got under 
way), started to turn . upwards 
in the winter. The? have kept i 
on saining in the early months 
of 1978, though hardly by very , 


■ Quarter- to -quarter & month - 

to -month changes 
5,2 ~ Dollar Vai ue 

Volume— -4 

3nSBe«i® 4th QnrW JAN FEB M 

1977 1978 


Percentage increase on same 
month of previous year 

spectacular margins. More 
remarkably, and a good deal 
less reassuringly from the point 
of Japan's partners in world 
trade, exports performed very 
strongly indeed during tbe first 
two months of 1978, although 
there has been some levelling 
off since. 

In the final quarter of 1977 
the volume of Japanese exports 
showed almost no increase over 
the third quarter. In the first 
two months of 197S. when re- 
valuation might have been 
expected to be starting to hurt, 
export volume rose by 22) per 
cent and 5.6 per cent on a 
month-to-month basis before 
subsiding by 3.5 per cent in 
March. The strength of exports 
during the first two months of 
the year can be put down partly 
to special factors such as the 
delivery of a Y60bn (S270m) 
floating pulp factory to Bra/Jl 
in February and a sudden spurt 
of car exports - ' to the U.S. 
(caused apparently by the 
release of pent-up energy alter 
Japanese car exporters had 
deliberately held back in the 
final months of 1977). A more 
fundamental point seems to be 
that Japanese exporters are 
finding the going .easier than 
they had feared. 

At the beginning of 1977. 
before the yen had started its 
rapid rise, most Japanese 
industries were telling the 
Economic Planning Agencythat 
they could not export at a profit 
if tbe exchange rate Went much 
beyond Y290 -to the- dollar. 
Now the range at which 
industry thinks it can sell 

abroad and make money goes 
from 240 yen to the dollar (for 
textiles) to under 200 yen to 
the dollar for some parts of 
the electronics industry. 

One point which helps to 
explain the surprising resilience 
of Japanese industry in tbe 
face of revaluation is that, fnr 
many industries, exchange rate 
adjustment has turned out to be 
a matter of swings and round- 
abouts. A typical instance is 
steel (fnr long Japan's number 
one export uadi edged out 
during the past two years by the 
sharp rise of car exports). 
Japanese steel makers, or rather 
the integrated portion of the 
industry which starts with basic 
iron making, are overwhelm- 
ingly dependent on imported 
raw materials. On a rough cal- 
culation the steel industry 
spends about 80 per cent, of 
what it earns from exports on 
buying imported raw materials, 
chiefly iron ore and coking coaL 
That means that some four- 
fifths of the damage which the 
industry suffers as a result of 
having its yen earnings cut by 
revaluation (assuming that 
dnJlar-denominated export prices 
remain unchanged) is offset by 
a fall in the yen cost of its raw 

Steel exporters in practice 
have not held their export prices 
steady in terms of dollars. They 
have been obliged to raise their 
dollar prices in key markets 
such as those of the U.S. and 
Western Europe by devices such 
as the U.S. trigger price system 
which assesses an exporter's 
costs ou the basis of a formula 

derived from Japanese produc- 
tion data and provides for anti- 
dumping duties to be levied on 
products sold below the assessed 
levels. Japanese steel exports 
have not been alone in under- 
going price increases as a result 
of the U.5. trigger price system. 
Europeans and American steel- 
makers have raised their prices 
as well, thereby substantially 
offsetting tbe effects of yen 

Another industry which has 
managed to make overseas price 
increases stick since revaluation 
is the motor industry. Most 
Japanese car exporters have 
raised their prices in the U.S. 
by about 20 per cent since the 
start of 1977. Car exports have 
nevertheless continued to grow, 
at least until last month or so, 
for two very simple reasons. One 
is that U.S. car manufacturers 
have been raising their prices 
too, though not quite as fast as 
Japanese exporters. The second 
point is that Japanese exporters 
have been exercising "restraint” 
in the U.S. market so that de- 
mand for their cars outruns 

Not all Japanese industries 
are in the lucky position of 
having foreign customers queue 
up to buy thoir products 
regardless of whether they raise 
their prices. For Japanese 
industry as a whole export 
prices expressed in dollars have 
over the past 16 months gone 
up by substantially less than 
the amount of the revaluation 
tby 13.5 per cent as against a 
yen appreciation of 30 per cent) 
Export prices expressed in yen 



have come down (by just under 
7 per cent). In order to cut 
export prices Japanese industry 
has engaged in a far-reaching 
and sometimes ruthless cost- 
cutting campaign which is still 
going on. 

Big Japanese companies dn 
not normally cut costs by dis- 
missing employees, but they 
have nor hesitated to use their 
market strength to impose price 
cuts on the hundreds «*f thou- 
sands of small «i:b-con tract nra 
which supply them with com- 
ponents. Primary siih-eontrac^ 
tors have usually been jhle to 
pass on these cuis to their own, 
still cma'l-'r. suoplivra so that 
the burden of cost cutting has 
been widely shared. 

The real sufferers in this 
process would appear to have 
been workers in small com- 
panies who have been obliged 
to accept wags cuts in order to 
jdlov; their employers to reduce 
their prices to big industrial 
customers. The? option of avoid- 
ing wage cuts hy switching to 
another company does not in 
practice e: *st for Japanese 
workers sine*- rnvon* who Hoofs 
the system of Hfe-rime rinnior- 
ment by changin' 1 jobs j* liable 
to face a 20 to Si; per cent cut 
in his earnings. 

Apart from forr* ; nc tig— ir ‘-on- 

pliers to cu» compor-.n pr: :es 
some Japanese swapp'd'** have 
started to increase tin t over- 
seas procurements nf -parts and 
materials. Hitachi, fur in. 'ance. 
intends to double its ratio of 
imported parts from 5 to 1C per 
cent, over the n a xt two year-. A 
hard core of exporters have _ut 

I t heir export prices, in yen, or 
I held them steady in dollars, 
because to raise dollar prices, 
would mean to lose markets, 
and because they preferred to 
sell at a loss rather than to close 
dnv.-n large production facilities 
which would be costly and time- 
cinsuniing to re-start once taktn 
oui of operation. 

Japanese industry calls such 
loss making exports ‘‘bleeding 
exports.” though the rest oF the 
world might label them dump- 
ing. It seems to have been 
dogged determination to keep 
on exporting at all costs that 
kept Japanese artificial fibre 
manufacturers active in foreign 
markets during January and 
February after the government 
had expected them to give up. 

The success of Japanese in- 
dustry in adjusting itself to re- 
valuation assuredly does not 
mean that there are no prob- 
lems. Certain types of Japanese 
exports are expected to suffer in 
price-conscious markets (such as 
some Arab markets for large- 
scale industrial plant). Some 
industries, including a few 
quite major ones, may well have 
passed the point of no return 
and may ultimately have to 
withdraw not only from export- 
ing but also from Japan’s own 
domestic market in favour of 
cheap imports from other Asian 
industrial countries. 

In the middle-of-the-road 
industries like electronics sur- 
vival promises to be tougher 
from now on and to depend on 
the ability to keep on cutting 
costs and moving into higher 
technology areas. Hitachi, which 
started an intensive cost-cutting 
campaign long before the 
receat yea appreciation, says it 
expects to save Y5bn (about 
£13m) per month through Its 
Value Analysis programme 
which includes redesigning and 
simplifying products, using 
cheaper or fighter materials, 
and streamlining every conceiv- 
able type of overhead, includ- 
ing distribution costs. Moving 
into new products for a company 
like Hitachi means dropping 
traditional lines like vending 
machines and advancing into 
the growing field of micro-com- 
puter controlled electronic 
devices which indudes elec- 
tronic telephone exchanges, 
micro-wave ovens, and medical 
diagnostic equipment* "such as 
blood analyses '-and brain 

Hitachi says that if it bad not 
started doing this kind of thing 
years before yen revaluation 
•-iruck it would probably be too 
late io start now. For some com- 
panies it may indeed be too 
late. There will be more bank- 
ruptcies and mergers in 
Japanese industry during the 
high yen era than there were in 
the earlier phase of ultra-rapid 
economic growth. There will 
also be a hardened bunch of 
survivors who may well offer 
tougher competition than ever 
to their opposite numbers, in 
the West. 

proved io be onerous in The ex- 
treme and hate booo the subject 
of mill'll controversy. Yet with 
ins coffer.-, empty. Gen. Morales 
lias had no choice but to ac- 
L-upt tin-in. He has now had lo 
increase tin; domestic oil price 
sharply, nut up the price eF some 
stap'.e loud., by 50 per com. and 
devalue the sul yet again. 

It i>> hardly surprising that 
the measures have heen greeted 
by a wave of protest and not- 
mg which has left a toil of 
death in the streets of many 
Pcruvi-in cities. These events 
have been followed by the 
postponement of the elections 
for a cutialilucnt assembly 
which were to have been held 
m a fornngiil's time. 

The election* ior toe Assembly 
were announced by the G overa- 
ment as the first step on the 
road tu a return to civilian ruie 
and the decision not to boid 
them on the published date is a 
grave mailer. It could be that 
the postponement will have a 
profoundly unsettling effect on 
Peruvian politics and maj tempt 
Gen. Morales’ rivals to bid (or 
power aud thus imperil Peru's 
precarious stability. 


The present Peruvian crisis 
aud similar difficulties faring 
the Jamaican authorities raise 
yet again the question of the 
appropriateness of the demands 
that the Fund makes on 
developing countries as the 
price for its assistance. Aus- 
terity measures which rich 
countries such as Britain find 
burdensome hut in the last 
event tolerable can have 
devastating effects on the poli- 
tical and economic fabric of 
poorer countries. 

As at least one Minister 
indicated last week, the Fuad's 
attitude tu developing countries 
may well have to come under 
closer scrutiny m the future. 

Saving Britain's 
kidney patients 

For almost a decade a tragic 
dispute has been raging be- 
tween the Department of Health 
and regional health authorities. 
The dispute has been over the 
priority to be given to patients 
siuTeriag from kidney failnre. 
In the course of it thousands 
of kidney patients have died 
because of a lack of the neces- 
sary facilities. 

One month ago it seemed that 
a solution had been found. The 
budget provided for 4o0 extra 
dialysis- machines to be made 
available. But yesterday Dr. 
Vmhony Wing of St. ThomnVs 
Hospital told me that of 
Britain's 46 renal centres. 41 
vho have replied lo questions 
ay that it is not machines 

.vbieh are Die main present con- 
rraini on expanding treatment 
and thus saving more lives. In- 
lead the immediate problem is 
one of expanding staff and 

Wing, who is Chairman of the 
Registration Committee of the 
European Dialysis and Trans- 
plant Association, stresses that 
he “ productivity ” of Britain's 
relatively very small number of 
renal centres is strikingly 
higher than that of centres in 
Western Europe. But he 
stresses the value of “satellite 
units small units backing up 
a major centre, with a low staff- 
ing ratio and a high degree of 
self-care by patients. 

In the 1960s Britain was one 
of the world leaders in tbe 
amount of treatment it gave to 
kidney patients. Now it comes 
t3th on a list of European 
countries graded in terms of 
patients on treatment ‘ per 
million population. 

Elizabeth Ward of the British 
Kidney Patient Association says 
that each year 3,500 people who 
could have been saved die from 
kidney failure. 

The Department of Health 
thinks this figure a little on 
the high side but tells me that 

only between one-third and onfc- 
half of those needing treatment 
now receive it. It says that even 
with this year's budget alloca- 
tions it will take at least five 
years before the required 
facilities are available. It is 
the only area of National Health 
Service activity where doctors 
have to choose between which 
patients to save and which to 
let die. The Department says 
that since regional - authorities 
were given the power to allocate 
their funds as they chose there 
have been problems over the 
relatively low priority some 
authorities have given to the 
costly problem of [treating 
kidney patients. 

The South West Thames 
res-?n has the lowest - rate of 
treatment of kidney patients in 
the country. They told tr.e 
that this was because of the 
hnsoiiais just outside their 
borders and that they bad no 
waiting list. But the Depart- 
ment of Health angrily 

countered that the region's 
failure to provide proper facili- 
ties put undue strain on the 
already inadequate facilities in 
the areas around it. They said 
■* Of course there is no waiting 
list. If patients are not treated 
they die." 

Ominous hints . 

The outlook may not be quite 
as bright as it would seem at 
the European Credit Bank. At a 
conference in Brussels to mark 
the bank's 10th year and cele- 
brate a healthy increase in 
profits, one bemused guest was 
presented with a copy of “Tbe 
Crash of '79,’’ the high finance 
doom thriller by writer Paul 
Erdman. The guest also 
received a handsome dock— 
presumably to start the count- 
down with. 

Classy game 

Clement Attlee used to say that 
he did not preach class struggle 

recently selected from over 10b 
candidates to head the Politico 
Science Department at Maryland, 
has now had his suitability ques 
tioned by the incumbent. The 
appointment has also become a 
maJOT issue in the state's guber- 
natorial campaign. Unperturbed 
by such controversy, Sargent 
Shriher. former head of the 
Peace Corps, has just ordered 
seven sets of the $9.95 game 
for friends in the Soviet Un-r.n 
I would like to know who wins 


Spi I off 

u . . . and as Freddy Laker 
doesn't fly to Zaire we ceoldn’t 
afford to send forces there." 

but found it around him. Now 
an American academic has 
found a fine capitalist way to 
profit from the idea which is 
central to the Marxist canon, 
even if It has led to a major 
political controversy over bis 
possible appointment to a chair 
at Maryland University. 

Berteil Oilman of New York 
University's Department of 

Politics has come up with the 
socialist's answer to the game 
Monopoly. Called simply " Class 
Struggle ” it sports a picture of 
Karl Marx and Nelson Rocke- 
feller wrestling on its cover. 
One worker’s chance card reads 
“You are caught feeling sorry 
for the capitalists. Victory in 
class struggle comes to people 
who think about their own 
class. Miss two throws." A 
“capitalist's chance card has 
instructions in such spirit as 
“Yon embezzle one million 
from stockholders. No one sees 
or cares. Move ahead one 

Oilman had trouble finding 
mannracturers for the game. 
Eventually be formed a com- 
pany with friends: the profits 
are to go to socialist schools and 
journals. But Oilman, who was 

Poor Alan tic Richfield. It was 
only after its ultimatum to th? 
National Graphical Association 
taat its paper, me uoserver. 
finally came out yesterday, but 
even then it was in so roducen 
an edition that the oil com 
puny s advertisement for a 
geopnysicist did not appear ml 
its pages, though it did in its j 
arch rival, the Sunday Ttines. 

Just shamming 

Some of my readers have beer, 
complaining that there j S 
occasionally an anti-Irish spir:: 
in my jokes. Unfair, I say there 
is even a shamrock on my desi: 
diary. But to prove my pu;ai] 
B. R. Acfcenhouse and I wiil 
only be printing Andorran 
anecdotes in future. | 

Ohe which we have just heard 
was from a reader who wen 
Into a small Andorran county 
pub recently. He was greeted bi 
the landlord, who told him tha' 
he was too early. - It is half a\ 
hour to opening," he added 
“but ydu’re welcome to take a 
seat until then.” 

The reader sat down and 
opened a newspaper. "That's 
right” said die landlord, “ make 
yourself at home — and would 
you care for a drink while 
you're waiting?" 

Men’s model 
(Ref. 3748). 
Matching - 
cufflinks also 
Golden £ffip$e 
and 18 ct. bkfi 
coloured go W, 


Golden Ellipse anri 
18 ct blue colourpri 
gold. They invariably 
identify Patek Philippe- 

designs. They tell ycu 
that the watch was 
finished entirely by 

hand, in the manner L 

practised by Patek Philippe 
since 1839. The Goiden 

Ellipse was derived Hf 
Patek Philippe from/ 
the Golden Section, 
the principle which > 
already inspired the. 
design of the 
Parthenon. "Hie blue, 
coloured gold of the 
dial is a bit of alchemy 
signed Patek Philippe, 

Observer \ 


Ennobled by the craftsman’s touch 

C talogue and hsi jev.eiiors from; p a i e k Philippe, Dept-F 
35, Maidenhead. Berks SL6 3BQ. 


Financial. Times Monday May 22 1978 


.- Monday May 22 1978 


Banking communities and their supervisory authorities around the world are still 
enmeshed in the twin problems of inflation and economic recession. For most the 
future remains one; of uncertainty until means are found to stimulate recovery. 

to a 

low key 

By Peter Riddell 

Economics Correspondent 

A DEPRESSING familiarity 
has characterised discussions 
over the past IS months on 
prospects for the world econ- 
omy. At meetings of officials 
and Finance Ministers it is 
monotonously agreed that the 
outiouk is gloomy and that 
growth is unlikely to be 
sufficient to prevent a rise in 
unemployment unless con- 
certed action is taken. The 
emphasis may change but the 
message has been the same — 
from the. Puerto Rico summit 
of the leaders of the seven 
major industrialised countries 
Via the London meeting a year 
ago to the preparatory talks 
ahead of the Bonn summit in 

While 1978 has in many 
respects looked like being a 
repeat of 1977. the mere con- 

tinuation of poor performance 
has aggravated and hot lessened 
the problems. Mr. Emiio van 
Lennep, Secretary-General uE 
the Organisation for Economic 
Co-operation and Development, 
argued earlier this year, “it 
would be wrong to underesti- 
mate the dangers involved in 
the persistence of an inadequate 
and mal distributed rate of 
growth" in the industrialised 
countries. He went on to high- 
light the social and economic 
oosts of high unemployment, the 
prospect of continuing, serious 
payment imbalances, worsening 
problems in particular, indus- 
trial sectors, and the steadily 
growing pressures for protec- 

This prospect has given an 
increased urgency to the Bonn 
summit but there are no great 
hopes that anything substantia] 
will be agreed in the key areas 
of currency stabilisation and 
action to buost economic growth 

The danger is that the cur- 
rent faltering economic re- 
covery could turn into a new 
recession in 1979. aggravated 
by growing protectionism. The 
prospect was summed up by Mr 
Denis Healey, ihe Chancellor, at 
the recent meeting in Mexico 
City of the International Mone- 
tary Fund interim committee, 
which he chaired. He said there 
was "a danger of the world t 
economy entering a deflationary 
spiral unless those countries 
with large payments surpluses 
took action to stimulate 

V -stow, pnd unevvn}.v distri- 




Oil funds 


City of London ■ 






Interest, rates 








Monetary union 

: - : in 

Export finance 







- IV 









West Germany 












Bong Kong 


Foreign banks 








buted. rale of expansion has 
been 'the most clearly identi- 
iiable problem of the past two 
years, explaining much or the 
payment* imbalances within the 
industrialised world .and the 
resulting currency’ Instability. 
All This is against the back- 
ground of a ' continuing large 
surplus for the oil-producer 
countries IOPEC) taken as a 


After a sharp initial recovery 
from the recession in late 1975 
and early I97B, economic 
activity in most of the main 
industrialised countries has 
since grown at a slow rate 
wi'h only short-lived bursts, 
such as in the first few months 
of last year. 

Real Gross National Product 
in the industrialised countries 
grew by under 33 per cent, last 
year, compared with 5j per cent. 
{ n 1976. This meant that the 

various growth targets set by 
Finance Ministers at summit 
or OECD meetings were not ful- 
filled. By the end of last year 
unemployment in industrialised 
countries altogether was about 
16.1m., or some im. higher than 
at the trough of the recession in 
1975. . 

Even more significant has 
been the fact that the U.S. has 
accounted for a- large part of 
what expansion has occurred — 
growing by 5 per cent, in 1977. 
At the same time growth in 
Europe has been very slow — 
barely 2 per cent, in real terms 
in 1977. This was partly 
because stabilisation pro- 
grammes in Britain, Italy and 
France acted as check, as in- 
tended. on expansion while the 
current accounts of these 
countries moved . towards 
balance. But there was also 
slower growth in 1977 in surplus 
countries such as West 

This led- to a worsening dis- 

tribution of current account 
balances among the industrial 
countries, with the U.S. current 
account deficit jumping from 
S1.4bn. to just over $20bn. 
Although a large pan of the in- 
crease reflected higher oil 
imports,- the surplus of the 
OPEC countries fell by a few 
billion dollars. It was in- 
creasingly concentrated on a 
small number of countries with 
a low capacity to import, 
notably Saudi Arabia and some 
of the Gulf States. Several of 
the other countries with larger 
populations moved into deficit 
and have become net borrowers. 

The rise in the U.S, deficit 
was mainly matched by a rise 
in' the Japanese surplus from 
$3.7bn, to $llbn. while the Ger- 
man and Swiss surpluses re- 
mained high. As Dr. Johannes 
Witteveen. the retiring manag- 
ing director uf the IMF. recently 
remarked, "the cause of 
equilibrium among industrial 
countrips would have been 

better served if improvements 
io the Italian, French and UJS. 
current accounts had been 
accompanied by opposite adjust- 
ments of German, Japanese -and 
Swiss balances, so that less 
direct or indirect counterparts 
of these improvements would 
have been centred on the Un- 

The current account position 
of some of the previously "con- 
valescent” European economies 
has improved in the past 18 
months. But the continuing 
uneven distribution of balances 
among industrialised countries 
has created the danger of cur- 
rency instability and the pos- 
sible adoption by weaker 
countries of restrictive trade 
practices or deflationary 

The currency instability has 
been all too apparent in the 
past year, with the dollar fall- 
ing sharply against the 
Deuschemark,. Japanese yen and 
Swiss franc. The result hasf 

been growing pressure on the early months of this year it 
surplus cuuotries, notably looked unlikely that the mea- 
Japan and Germany, to take sures taken in autumn 1977 
action to boost imports from would be sufficient to set off a 
the rest of the world. This self-sustaining growth process, 
formed the basis of the so- Investment was still sluggish in 
called "locomotive" theory much most countries and savings 
favoured in international generally remained high, so 
economic discussions up till the limiting the revival in consumer 
end of last year, when - the demand. 

emphasis switched to a broader .u a the* 

approach, the “convoy" theory. . Consequently at the IMF 

There have, (nr example, been fT/T!".',' TK."®,,*' 
trade talks between Europe and end of asI month Dr 
the U.S., and Japan, lo curb Ole W.tteveen presen ed a gloumy 

latter's exports, though the rise ™* " f theoud °° k for 
in the Yen may have an effect. w0 / ld economy unless concerted 
There is also a growing recogni- jetton was taken. His note, 
lion of the long-term structural based on IMF staff work, showed 
nature of the Japanese current «■* world Cross Nattona Pro- 
account surplus. CunsequenOy duct £ rowin ° b / 4 
more attention is being devoted £ ar compared with less than 
to ways in which Japanese J er cent in 10, ,. with world 
capital can be invested on a t ™*' expanding by only 5 per 
long-term basis overseas, pos- « Dt ; In b ° lb *'»«• »«“ below 
sibly via mulUlateral aid hmS-terra rate of increase 

organisaOons. Dr w.tteveen noted the! out- 

side the U.S. the rate of growth 
should be generally higher this 
year than in 1977. though any 

In "West Germany there has slight acceleration may be 
been a reluctance to introduce insufficient to reduce unemploy- 
any more than a modest stimulus merit. The gap between actual 
to the economy, partly because «tnd potential output in manufsc- 
of fears about the impact of tuning has continued to be large, 
larger reflation on the rate of In the six major industrial 
price of Inflation. Restrictions countries outside the U-S., the 
on public sector borrowing and average gap is about 13 per 
the high savings ratio are also cent, f ranging up to 20 per cent, 
cited as reasons why larger in Japan), compared with 
packages either cannot be intro- roughly 2 per cent, in the two 
dueed or wil lnot work in the decades up to 1974. Resource 
way suggested by outsiders. utilisation in the U.S., raanufac- 

The result, both of this record taring sector is only about 5 
and attitudes, is that by the per cent, short of potential with 



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thinned down 

1 * 
I . 

THE OlL-exporting countries, 
whose multiplied revenues have 
had a major impact on the world 
economy and banking system in 
the past 4} years, are now 
facing the greatest squeeze on 
their earnings since the petro- 
leum price was quadrupled at 
the start of 1074. 

Estimates of their surpluses, 
often known as petru-dollars or 
petro-money, have been steadily 

scaled down, while still remain- 
ing large, in response to recent 
price and economic trends. Com- 
pared with figures of some 
S37bn in 1976 and $34bn in 19i i, 
the total amount or revenue re- 
maining to the Organisation of 
Petroleum Exporting Countries 
t'OPEC) group, after all costs, 
including rising import bills, 
have been met, may be only 
$25bn or even a little less in 


This will be the lowest figure 
since the oil price soared, with 
dramatic consequences for the 
international economic 'and 
monetary system, and will be 
less than half the $57bn. surplus 
earned in 1974 before the OPEC 
import boom got under way. 
Moreover cost inflation and the 
fall in the dollar have reduced 
the buying power of the petro- 

money by more than 25 per cent 
since 1974. 

Even $25bn, however, is still 
a very large sum compared with 
what the oil-producing oat ions 
were earning before the steep 
price rise in early 1974. It will 
raise the total external assets 
of the OPEC States — 
including Saudi Arabia. Iran. 
Iraq, Kuwait, the United Arab 
Emirates (UAE), Libya, Nigeria 

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; ’rctr.-zr'iS:: 

Frankfurt Houston Singapore Bangkok Mexico City Beirut Teheran 

New York Ire Angeles Hong Kong Taipei Panama Abu Dhabi 

San Francisco Chicago Jakarta Tokyo Sao Paulo Dubai 

and Venezuela — at the end of 
1978 to around SISObn, much 
of it in bank deposits of shorter 
or long term and a great deal 
of it, perhaps 70 per cent, in 
dollars in the Euro-currency 
markets and the U.S. At the end 
ef 1972, before the oil price took 
off and transferred major 
amounts of wealth to the oil 
States, the comparable holding 
was only $l3£bn. 

In any calculation of likely 
oil surpluses, the price of the 
commodity plays a large part 
Pressures on the price in the 
context of a sluggish world 
economy and a glut of supplies, 
are now strong and are likely 
to be felt for many months to 
to come. This is despite the 
expected OPEC action lo cut 
back production by 20 per cent 
in the hope of removing excess 
supply and eventually firming 
up the price. 

After the quintupling of the 
oil price level in the three 
years after l978i last year saw 
a more open rift on policy 
within OPEC. Most producer 
nations brought in a 10 per 
cent price increase early in 
1977, with a view to adding 5 
per cent more in mid-1977. 

But Saudi Arabia, much the 
largest producer, and tne 
United Arab Emirates, both 
with relatively small popula- 
tions and rich reserves, put 
their prices up by ordy 5 per 

By mid-year, when price 
resistance among consumers 
and slack demand induced by 
the worldwide recession — which 
was itself in large measure due 
to dearer oil— was plainly 'wi- 
den!, Saudi Arabia and Iho I’AE 
brought, their prices into line 
with those of the others, elimin- 
ating the two-lier situation. The 
planned further 5 per cent 
increase was, however, f irgone, 
and since then Saudi Arabia 
has taken the lead in poi filing 
out to its partners the realities 
of the situation and thy inhos- 
pitable environment lor any 
further price rise yet. 

that the decline in the dollar short4erm holdings into long- Concera towards thecnd of 
was steadily eroding the value term investments, both for de> last year aboutihedollarsvaln© 

uie uuudi, lire luuug uiuwag- u, uiv r - _ . u;ri D thmiAh ' 

mg power of the dollar was one faced the oil-producing States Treasury ■ b Hs, though there was 
of me major factors behind since 1974 and one which has eho a «* in 

recent pressure by some OPEC not yet been solved to more than nations hoidm us « ratter 

members for higher prices or a very limited extent Consider- longer-term U.S bonds and 

for toe link of the price they able aid has been channelled to *“*«.> by the sizeable figure 

received to a “ basket of cur- the poorer countries, partial- of 5-4-iu . 

rencies.” While Saudi Arabia's larly in the Arab world, but the Another trend which has 
Crown Prince Fahd has lately imbalance between the needs of been quiedv taking place has 
reiterated the Kingdom's con- the poorer Third World, and been the channelling of ratber 
fidence in the dollar and said the still large surpluses of the more of the OPEC cash, includ- 
tbat it did not wish to switch oil producers — a major part still that of Saudi Arabia, into 
to payment in any other cur- held in short-term balances — private placements with leading 
rency, there is little doubt that remains a feature of the world companies and borrowing to. 
Saudi concern about the dollar’s scene which poses questions stilutions, particularly in the 
value and toe need to sustain for the future. U.S. but also to some extent 

it was conveyed to the U.S. *hpn» ic nn reason in other countries. The Saudi 
earlier this year. * le . International Bank in London, 

year. to totok ^at the rather smaller haJf of whosc capital is held 

~ but 51,11 Jf bv the Saudi Arabian Monetary 

Stifter surpluses becoming available ^ ency ^ whose business. is 

for investment this year will general banking. recently men-i 

Now, the stiller monetaiy ^eirs The tioned that the in Y, estmen t ol 

°% M 5- G ',“ “Si- XA SS?*S. one Sr, 5 L b S 

the new Federal Reserve Board {,* „ S izeahie amount of cash t,u,f .states, particularly baudi 

chairman, the reduction in beine held in bank deposits Arab,a - ttrough the medium of 

prospective U.S. tax cuts and ^ g W ith a aradSlIv Sn- private P lacemeuts was increas * 

toe American plan to sell gold, bfSs mostly of in § ”3™* and , be 

hare combined to give the u.S. Government' and top expected 10 ° rovv iurther - 

doUar a better tone in world American and certain other T 
markets. Its depreciation international -companies, absorb- ISSUcS 
against other currencies since ing sn increasing part of the 

Iate-1971 is only around 5 



Against the background of 
market glut and of growing 
competition from such new 
sources of oil as the North Sea.- 
Alaska and Mexico to the tradi- 
tional producers, the OPEC 
nations deferred a decision to 
raise prices at the end of 1977 
and at their recent conference 
at Tail in Saudi Arabia farmed 
a new committee to consider 
the group’s longer-term price 
strategy. Reports last week 
suggested that OPEC was nnw 
cutting production back to 2Gm 
barrels per day tbpd), from 
almost 29m bpd in March and 
would carry through a 20 per 
cent reduction in the hope that 
this could create a boner 
climate for higher pricer next 

. Recent tougher action by the 
U.S. to relieve pressure on its 
currency has somewhat miti- 
gated another OPEC anxiety — 

_ Purchases of international 

per cent compared with almost . bond issues by OPEC investors, 

6 per cent a few weeks ago. fai \ A L a ,!5 though difficult ro identify, also 

But inflation has meant that 9° ncerne “- short-term holdings appear t 0 jj aV e been consider- 
its purchasing power is down “ a railg ® f a4 ^nks w 

ru>r .-pm n}tnc>Pthpr in several leading countnes 
S?Sel976 P ^ 8 thet (known as the “ magic circle -) These trends towards some 

^ are likely to take much of the longer-term investment reflect a 

One trend which has eaten accruing cash, a large part of certain shift towards more 
steadily into the OPEC revenues which will be held in dollar or settled investment outlets for 
has been the increase in the Eurocurrency form. the OPEC surpluses. And al- 

oil States' imports, both for though they account for only 

their development programmes T?~ gl 24.; a limited part of the petro- 

and for greater consumption. IjOUlltCS money, there is no doubt that 

The whole OPEC group’s all the surpluses have been de- 

imports rose from only Only minimal quantities of ployed in a generally careful 
£20 bn in 1973 to £34bn in 1974, Saudi surpluses have so far and conservative way and that 
?67bn in 1976, and $85bn in found their ways into equities, the world banking svstem has 
1977. and the figure could well though Kuwait, with a long- absorbed them relatively corn- 
reach around SlOObn this year, established system for invest- fort ably. They have, in part. 
In addition, spending on over- ment in the West, partly helped to feed the recoverv of 
seas services — construction through the Kuwait Investment the Euromarkets in tbe past 
work, tourism, and so forth— Office in London, has more [wo-and-a-half years, after the 
has also been rising sharply. strongly favoured investment in shocks, including the collapse 
The overall net surplus of the sha f es and has several hundred 0 f the Herstatt bank, in 1974. 
whole group is also tending to 0,1 H ion pounds invested in UK Certainly there is now much 
be limited by the borrowings of , ? n . d property ‘ tr a , st J ’ ea f less very short-term cash wash- 

some OPEC nations, such as l * disc lot v da oE lmUed ing around the banking system. 

Iran and Venezuela. ? ta kes Jn blg companies, particularly in the U.S.. than 

^ including general Accident, in 1974 

Even, however, if the OPEC Guardian RovaJ Exchange 1 

countries have only some £25btl Assurance, and Trafalgar Hous’d Another undeniable fact is 
of surpluses to deploy this year, w h en interests of S per cent or th at the investment of jjetrp- 
tfie sum .will 'still be a major' more jn UK companies’ equity - m0De y is - despite the past 
one in the world financial scene, had to be revealed year’s gyrations of the U.S. 

As hitherto, the bulk Of it is ‘ . currency, still largely tied to 

likely to belong to toe four has also shown some the dollar,'. the carrehcy in 

Gulf region States. Saudi Arabia, taste for direct investments in which oil revenues are cssen- 
Kuwait, tbe UAE, and Qatar. the West, as in its purchases of tlajjy paid and which, by reason' 
Coming on top of thq large bold,n § s .Krupp in West of -the realities of toe world 
surpluses already accumulated. ljermaI| y- . monetary system, is the ipevit-. 

■the disposition of this year's ’ 9^ the $33 bn net surplus ®bte outlet for much of the. 
surplus i* bound again to be a which the Bank of England holdings, 
matter of much interest to world ^sthaatts that OPEC countries Mr. Anthony Solomon, toe U.S. 
markets. earned last year. $12.6bn: is Under-Secretary for Monetary 

It is probably tree to say that blak’^nwite Tuch^ Affairs i n recenfl * v suggested that 
£ u( Petro- b ^? b k n “ 0 ^ d ' 7^^“ ^J°,e P r OPEC “ u'ri uS^ 

SHUTS? m doUar :md «2r lostrumeitt? with 1 

uie ia.1 rew years nave oeen sterling markets respectively, about 25 per cent in toe ns 

disposed of with care and Much of this was In tbe Euro- markets fas distinct from the 

caution and that a great part of markets generally, so . that a EUroSriceTs) 

the money is still held in bank sizeable proportion of it also _ 

deposits ar.d other relatively was denominated in dollars. Margaret Reid 

short-term forms. ° 

Translation of the very large • 

Low key 


With total assets approaching £2,000,000,000 at 31st December 
1977, the National Bank of Abu Dhabi is the largest and strongest 
commercial bank in the United Arab Emirates. 

As one of the world’s fastest growing banks we play an ever 
increasing role in the world capital markets offering such 
services as foreign exchange, money market activities, trade 
finance, multi currency loans, project finance and joint ventures. 



*'The businessman s bank ” 

T- •fc.-i li.'.rt !> a! ".$! Diccmlu - it>77 Dh. i i.OOs. 70 1,UH6 ! L'Sfi^Dsrkair: 4 cppnxinsulilv) 

U.A.E. Head Office: 

Sheikh Khalifa Street, 

Abu Dhabi. 

Postal Addn^s: 

I ‘ a Box No. 4. Abu Dhabi 
United Arab Emirates. 

Cable Adrlrcss: 

Alniasmf. Abu DliabL 
Telex: AH2266 and 2267. 

Extensive branch network 
in the Unite d Arab Emirates- 
Overseas branches: 
Alexandria. Bahrain, Cairo, 
Khartoum, Muscat Por "•'•fL 

To lie established: 

Amman, London (West End), 
Paris. Port Sudan, 

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London (City Branch): 
90 Bishopsgate, 

London EC2N4AS. 
Telephone: 01-626 896L 
Telex: 88 5 7-82 Masrafg. 
Cables: Masrafcitv. 

a further deebne in the margin 
expected during the next year. 

A more optimistic view has 
been presented by U.S. officials. 
They have highlighted the 
modest pick-up In economic 
growth in Germany and Japan, 
sn improved economic outlook 
for the Jess developed countries, 
the likelihood of a $10bn. drop 
in toe surplus of the OPEC 
countries, a good chance that toe 
Japanese surplus should move 
down later this year and expec- 
tations that toe U.S. current 
account deficit should decline 
in the second half of this year. 

However, Mr. van Lcnnep told 
the IMF interim committee that 
the provisional assessment bv 
the OECD was likely to be less 
encouraging than That forecast 
by the IMF, with more pay- 
ments disequilibrium and growth 
rales in industrial countries 
tailing off in the first half of 
next year. 


A change in strategy towards 
promoting growth was pre- 
sented to the IMF by Dr. 
Witteveen, with recommended 
rates of expansion " for the 
major industrial nations. He 
outlined a pattern of differing 
rates of expansion i n order to 
promote a substantial adjust- 
ment to current account 
balances. For example, Uie U.S. 
growth rate was projected to 
decline from an estimated 4' 
per cent this year to 4 per ^ e nr’ 
m 1979. partially offset by an' 
acceleration from 5.7 to 7 5 per 
cent, in japan and from '3 1 i„ 
fa per cent, in Germany. An 
increase in the growth rates of 
the U.K.— up from 2.9 to 3.5 per 
cent— and of -Italy and France 
was also proposed. 

Dr. Witteveen estimated that 
after allowing for other influ- 
ences, such as the potential- fall • 
in the OPEC surplus, the VA 
current account deficit should 
fail from an estimated $J7ibn. . 
this year to gtijbn. in 1973. 
Japan's surplus should shrink 
from 911 ’bn. to $2.2tan.- while . 
Germany's estimated surplus of ■ 
87}bn. this year should turn info • 
a deficit of $100m. Tbete 
should be improvements in the 7 
current account balances ef die ■ 
other major European^ 
economies with Britain's surpffa ‘ 
rising from §1.9bn. to #4.SWL> .: 

The problem has been'; - 
while this may seem an attr«- : 
t‘ve outline to many' corrafr^s f . 
there is not yet any . sign fit*/. 
Germany and Japan, the’ .tffP • 
key countries, will be willing]# < 
take the necessary actioni 
tiie same time there is also:'#®- j 
agreement about the variant > 
proposals put forward' /idf ' 
stabilising curency marketfr^S . 
particular about ChanofcU* ; 
Schmidt’s suggestions totjyl . 
closer alignment of • ciunmiip ■: 
within the EEC. 

Relations between ", 

and Germany have been imp^' j 
tiig in recent weeks - compaf^. ^ 
with earlier in the yeari.'l&H ' 
there is stiU little evidence :^- \ 
sufficient progress can i 

to allow agreement; 
more than a vague formula'^ j 
good intentions. This niaiy ^. ^ 
useful in a negative • seB6f£ ■’ 
preventing a more rapid; 
towards protection . jiaiw.'; 
encouraging at least- 
action to boost growth 
the surplus countries. It js-a' 
open to doubt what effect V 
such stimulus would lia?< 
pressures for action 
currencies may have eased- i^ 
ever, since there arevstlni - . 
sigos of a recovery in- toe 


v- * 

•i 5 



Common Market Correspondent 

FinaneSa! Trnws -Monday- May -22 1978 



lhr °»ehoui the year. 
wl1h 1 flui’luaiion* in the currency 
markets exercising a dominating 
influence i*n coin para live levels. 
The dollar -weakened stc-adiW 
over the pasr nine months— 
only staging a recovery in April 

n bouncetl back against 
an the major currencies. The 
corresponding sirength of the 
Continental currencies 
and the Japanese yen hare boon 
re Hoc ied in contrary movements 
in the level of interest rates. 

In 1977 Hr. pressure on the 
dollar produced sharp rises in 
the value of all the traditionally 
s.mns currencies, the Swiss 
franc and the yen in particular 
and the West German D-Mark. 
At rhe samp time fihere was a 
remarkable transformation in 
the position nf sterling, which 
has been usually one of the 
weaker currencies. This was 
thanks to a restoration of inter- 
national confidence following the 
nesotiarion of the International 
Monetary Fund loan and the 
improvement in the balance of 
payments as North Sea oil began 
to make an impact 

The first few niomShs of this 
year have seen significant 
changes in the • picture. The 
French franc, which had been 
very badly hit by -fears of a 
Left-win j victory in the spring 
elections, recovered sharply 
when the Right held its Position. 
In a few days the day-ln-dav 
money rate fell from 10.5 per 
cent to 9 per cent, and then 
to 8.5 per cent. 

Earlier official concern at the 
long decline of the U.S. dollar 
now appears to have been re- 
flected in positive steps— and in 
April the dollar, helped bv the 
psychological boost of gold sales, 
strengthened. Mr. William 
Miller, the new chairman of 
the Federal Reserve Board, 
took a hard line against infla- 
tion in hi?, first appearance 
before the Senate Banking Com- 
mitlee. The Reserve's discount 
rate moved tip to its highest 
’eve] fur three years. 

In Britain luo the spring has 
proved a watershed. The earlier 
euphoria about the country's 
economic prospects disappeared 
after the gloomy January trade 
figures were released and the 
realisation strengthened that 
the balance of payments had not 
been eliminated as a constraint. 
Since then the Minimum Lend- 
ing Rale (MLR; has moved up- 

wards from 5 per cent to 9 per 


The currency movements and 
the unrest which has persisted 
in the exchange markets for 
the past nine months have 
brought substantial problems 
for countries both on the re- 
ceiving and losing end of the 
speculative inflows and outflows. 
Efforts to stem tbe pressure 
have included at times heavy 
official intervention in the ex- 
change markets by the central 
banks with the stronger cur- 
rencies and various measures to 
discourage inflows from abroad. 
The Swiss in particular intro- 
duced a punitive negative 
interest rate on all new money 
brought in. 

of instability 

tion to correcting the payments time the Administration took this second occasion 
imbalances. It was felt that steps to curb inflation, which dropped out entirely. 

CPn ■nnrtPu hnn>mco vainJind — — * _ _ r .. m ■ *«_i . 


In the latter half of last year 
the difficulties created by the 
corresponding inflows as the 
U.S. deficit widened further 
made for regular efforts by 
politicians and central bankers 
to talk up the dollar by emphas- 
ising that its decline had gone 
too far and by underlining the 
effects it was having on their 
domestic economies. It also 
brought notably in Britain but 
also in other countries, a de- 
cline in the general level of 
short-term ’ interest rates — a 
movement in contrast to the in- 
crease in the U.S. 

In the past couple of months 
the picture has somewhat 
changed with the rise of the 
dollar from mid-April. However, 
the underlying reason for the 
decline has not altered. This is 
the sharp increase in the U.S. 
trade deficit. Last year it rose 
to a record $26.72bn, 4* times 
its level in the previous year. 
The total has tended to increase 
over the first few months of 
1978. -A large contribution to 
the rise has been made by tbe 
sharply increased level of oil 
imports, and the problems of 
the U.S. administration in gain- 
ing acceptance for its energy 
policy have contributed to 
international uncertainty. 

The attitude of the U.S. 
authorities towards the dollar 
and their apparent indifference 
for most of last year to the 
effects of its decline on other 
countries played a key role in 
the exchange market move- 
ments. Initially the VS. was 
inclined to regard the fall in 
the dollar as a useful tynfribu- 

in MLR was the inflows caused who has argued that its internal 
by the dollar's fall, combined currency problems are a major 
with new confidence about the reason why the Community has 
UK economy's prospects. In failed to match the recent 
July the Bank of England economic growth rates of the 
switched to trying to hold ster- U.S. and Japan. It has also been 
ling steady against a basket of favourably received by most of 
currencies rather than the dal- the smaller EEC countries and 
lar— without managing to stem by Mr. Roy Jenkins. President 
Sweden the “flows. of the European Commission, 

thpsn h.j '..i '' ~ wii«;u uruppeu uui cuuiciy. It also With mt R Rnum >; na » wbo ^as been urging govern- 

Ihe ii c? ® en partiy because reacted an annual rate of more forced Belgium to raise its dis- pjJSr “if *« 12 meDts since lafi t autumn to re- 

« 2 my growing *“ 9 ** cent in «« count rate twice during Decern- fhp «f SkS ? h bando t n vive plans for a monetaiy union, 

more rapidly than those of other quarter. Interest rates were ber by a total of 3 per cent to ? e pol,cy °^ holdmg ^ e rate T * ic , 

countries which had not fol- raised as the Fed announced less 9 ner cent to nroteS 2 down and aUowed Jt to float « “ still not entirely dear 

lowed the U.S. example in room for Growth in hSh mt L P ,ff<i without intervention. Io what prompted Herr Schmidt to 

**"8 to sustain woridTowtS ^5 ^ from now ^Sv^Stoe preL^S January tte ^change rote Dew ^.reversing the 

. After June there was grow- discount rate was raised this ^ ™ dimbet! t0 within a whisker decidedly negative attitude 

“3 pressure on the dollar and month bv 0.5 per cent to 7 per stands at 5^ per cent. OOW of 52 l*® 101 ® worries about the JjJ* 11 * Bonn has displayed in 
the dangers of this attitude pe r cent' the hi°hest since early The imoact of the balance of trade and growth io past towards EEC attempts 

became increasingly epparent. 1975 when it stood at 725 ner on the money supply caused a turn- Promote closer monetary in te- 

The market took the view that 1 **** &l P * r been 'SSL round in sentiment and sterling ™t widely held 

the Administration was trying The recent recovery of the of Si*! 5-“?? H* 3 " went int0 a ^ow but steady view . ,s , tha . t he has grown in- 
to talk the market down and de™ has^ten the nSssure off £* ,a " decline. To support the cur- ^singly impatient with the 

as the decline in the value of the D-mark for the time beinz iht>n 2 p ° und rency the Chancellor announced p arter Administration’s refusal 

the dollar gathered pace later ofTe ma jor probTem^ -h£ >2^“’ *"?*■ a 1 P«“ cent increase in MLR t0 recognise the problems 

m the year there was a zrowinz AT yi jpajor propiems Jiat inflows followed by worrying to 7 5 ner cent in hie R.,ri M t caused m the rest of the world 

choru/ “ e ei .“ir 5 ™^rne? U -h 2ft £„£ £"?«*, — “ S,is P^v^^Jent Kd *• « the dollar or 

countries with stronger cur- European joint float Slfif" 1 *** within a month rate was 0 * lke . aiiy effective remedial 

tand'and ffie^any^"' ^ Scandt Se^o 5™r jj*?* t0 M “ d * en 9 

found ^ orced devaJue - in A PriI lart to 9 per cent earlier this montZ 

^ ^ iD AUSUSL 0n ^ rea£on 

allay some of these reservations 
when he visited London late last 
month. He went out of his way 
in particular to stress that his 
ideas were not intended as 
hostile to the U.S. and could 
complement any future 
measures decided by Washing- 

While the differences between 
the British and German posi- 
tions appear to have been 
narrowed, it is not yet clear 
whether there is sufficient 
agreement to allow useful work 
to begin at a more technical 
level on the details of an EEC 
currency scheme. In anv case 
the timetable for further con- 
sultations, and the form which 
these should take, remain un- 
certain and rather confused. 

the effect of the rise in the 
D-Mark on their ability to com- 
pete in world markets. They 
brought growing pressure on 
the U.S. through a series of 
urgent public and private warn- 
ings of their responsibilities for 
ensuring greater stability. The 
U.S. Administration responded 
with calls for the West Germans 
to aim for greater growth and 
thereby take their share of the 
responsibility for generating 
international recovery. Up to 
now the Germans have resisted 
all attempts to draw them into 
such a policy. 

The U.S. gradually changed 
its attitude to the dollar's 


Signs of fresh 

action. As concern about com 
petitive consequences for Ger- 
man exports mounted, he grew 
tired of waiting for Washington 
to act and began examining 
seriously what the EEC could 
do on its own. 

Not everyone is convinced, 
however, that this is the full 
explanation. The British Gov- 
ernment's response to his ideas 
has been decidedly cool, and it 
has made little effort to disguise 
its immediate suspicion that 
they could turn out to be little, 
more than a diversionary 

The UK also doubts about the 
value of an independent EEC 
initiative in tackling currency 
instability. It believes that the 
root of the problem lies in the 
current imbalance in the 
triangular relationship between 

oMina influenc^Wert EUR0PEA ^ governments such a scheme through a sub- tries would not be required to the rtie^JD-raai-k Md* the 

German policy^ & S !"“*•" “■ abo “ t s,Mtil1 tnu,sfer ° f Germany's observe the rigorous disciplines Y “- «» British view the 

end of theyear'it waXvfnn^ LS£ atten,p ' at controlIm i t . which the “s4ke" imposeTon “eJy durable solution is likely 

to argue that Lhe declined rhp c f rre ? cy “o^^ents What Herr Schmidt appears its members, and a “crawling t0 Iie m a comprehensive 

dollar had gone too ftrto ^flwt SP* . to havemmmd is the creation peg” mechanism could be broach which would deal 

the underlying eco^ntic reali! ° f “ EEC, currency “zone," in devised to permit limited cur- directly with the dollar's re- 
ties. H was* onlv in parlv ^ tbe rece ? 1 w ^ch newly defined links be- rency depreciation by those se™ currency role. This 

January however^tiiat positive fir iric f onf^ 3 ^ t¥ ^5 1 “S° na ! currencies would countries suffering from above- analysis militates in favour of a 

steps were taken to arr^ th^ i L f nabl « Community better average inflation rates. broader, multilateral effort, con- 

decline through the decision to Sfinin ciSS2 X fn?HJtf'r» deS ? , Ih d J^dwtand the disruptive The links between the parti- centrated principally on dis- 
iindertakc a more active inter IS ,tl i2. Ves ° f j tb r effects of inflows of Tiot’ money cipants would be defined not in cussions within the Interna- 

vemion SIS iL«lf aVeyard ° f J®" P ^ s - of , the world ‘ terms of each others' cnrrencies tional Monetary Fund, 
weight of the international S V h i? IW7 ! K pe plan would involve setting but of the European Unit of As is often the case in matters 
i u i “iernational These questions have become fluctuation margins for curren- Account which i« hacert on a where increased ppr m.oor, 
central bank swop arrangements pertinent since leaders of the cies like sterling and the French wei-Med 2ef of S EEC tfon is conrero^d BriLfvE 

SS^e^C eC?” p= ^^S I SS^ freely, and C backing*^ tifem JS pTn^ WISSSS o^^tionT^ 

IHSSva sSSS Sasasss btjk- a-.-s =r tr-.’-iS i 

recovered against all tbe major and particularly by the 'ideas of Herr Sriimidt clearly believes E acnunSnit * unit ^an ^Sd^effectiSel scbeme . which 


months. At about the same prepared to consider backing a nd Norway. Other EEC coun- Giscard d’Estaing of France! Chancellor Schmidt tried to 

Immediately after the Copen- 
hagen meeting there had been 
hopes in some quarters that rhe 
EEC could draw up the main 
elements of a currency scheme 
in time to present it as part of 
its contribution to a broad 
package of economic measures 
which, it is hoped, will be en- 
dorsed by the seven-nation 
Western Summit to be held in 
mid-July. But with less than two 
months to go it looks increas- 
ingly unlikely that this deadline 
can be met. 

Part Df the problem is that 
the heads of government con- 
ducted their discussions in 
Copenhagen amid unusually 
strict secrecy and failed tn reach 
any firm conclusions on how 
next to proceed. Even their 
Finance Ministers encountered 
some difficulty in discovering 
exactly what went on and have 
been unable as a result to dis- 
cuss the matter among them- 
selves in any depth at EEC 
Council meetings. The only 
EEC forums in which idea's 
have been exchanged at all fullv 
on the issue since Copenhagen 
have been the committees of 
monetary officials and central 
bank governors, which are tech- 
nically highly qualified but lack 
a clear political mandate to 
shape their deliberations. 

Meanwhile the dollar has re- 
covered strongly in response to 
a more restrictive monetary 
stance by the U.S. authorities, 
as well as to the American 
decision to resume gold sales. If 
this tendency continues it will 
relieve a number of the imme- 
diate pressures on the world 
monetary system and alleviate 
some of West Germany's con- 
cern about its export competi- 

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We have growth with Hong Kong and as one of 
the largest banks in Asia we are in the best position to assist the businessman. 

With over 400 offices in 40 countries, we can provide you 
with influential contacts in all major trading and financial centres of the world as 
well as a broad range of banking facilities. 

The Hongkong Bank Group 

With offices in the major financial centres of the world 

The Hongkong and Shanghai Banking Corporation 
Head Office: 1 Queen’s Road Central, Hong Kong 
London: 99 Bishopsgate, London EC2P 2LA 
and in Edinburgh and Manchester 

The British Bank of The Middle East 

London: 99 Bishopsgate, London EC2P 2LA 

Members of The Hongkong Bank Group 



Financial Times Monday May 22 1978 


Tighter control in 
the offing 

The costs of the fringe bank 
crisis in Britain in 1973-74 can- 
not yet be counted in full, and 
its aftermath in the shape of 
the lifeboat support group has 
turned out to last much longer 
than was originally expected. In 
its recent evidence to the Wil- 
son Committee on the financial 
institutions, however, the Bank 
of England made perfectly clear 
its firm belief .that the damage 
would have been far greater if 
the decision to launch the life- 
boat had not been made. 

Whatever the ultimate losses 
may turn out to be, the Bank 
argued, “ they will be far less 
■than those that would have 
been sustained by the support 
group and the economy at large 
■had the support operations not 
been undertaken.” The action 
which was taken by the Bank 
(together with the big clearing 
banks to shore np the system 
was needed in order to avoid 
“a widening circle of collapse 
through the contagion of fear." 

The Bank’s paper also made 
it clear how much the crisis, 
which had begun as a liquidity 
problem in a few of the secon- 
dary deposit-taking institutions 
in the UK, spread in the later 
stages to become international 
The increasing malaise in the 
banking world- extended to the 
Continent and to the U.S. during 
the course of 1974. In June of 
that year, “ the international 
financial community, already 
aware . Of trouble at Franklin 
National Bank in New York, 
was shaken by the sudden 
closure of Bankhaus Herstatt 
as a result of massive foreign 
exchange losses.” 

At that stage, the Bank 
pointed out, there had always 
been warning signs. A number 
of small German private banks 
bad failed earlier in the year, 
and the Westdeutsche Landes- 
bank and Union Bank of Switzer- 
land had suffered substantial 
foreign exchange losses. Fol- 
lowing these events, inter- 
national bankers reacted in a 
way rather similar to the res- 
ponse of the UK institutions at 
the end of 1973, by withdrawing 
or sharply reducing their lend- 
ing lines to smaller banks. In 
July a further problem arose 
when the Israel British Bank of 
Tel Aviv failed, together with 
its wholly-owned London sub- 
sidiary. And in September 
Lloyds Bank had to announce 
that it had lost £33m. as a re- 
sult of unauthorised foreign 
exchange dealings in its Lugano 

Going back over these trau- 
matic events serves as a sharp 
reminder of just how close the 
international banking com- 
munity as well as the domestic 
banks in the UK came to suffer- 
ing a total crisis of confidence. 
It also underlines the weak- 
nesses which existed in the 
arrangements then in force for 
supervising the banking sys- 
tem. In the UK there was a 
special problem in the gaps in 
the regulatory mechanism 
which allowed the rapid growth 
of the secondary banks. ’ 
These initially grew up in 
the period before 1971 when the 
ability of the big established 
banks to lend to their customers 
was severely limited by the 
official credit controls. When 
the clearing banks were freed to 
expand their lending with the 
introduction of the policy of 
competition and credit control, 
the UK. authorities hoped that 
the result would be to lead to a 
gradual shrinkage of the fringe. 

The fact that this did not hap- 
pen was mainly because of the 
particular economic circum- 
stances of the time, with an 
easy monetary policy designed 
to encourage growth and with 
the property market boom pro- 
viding a tempting outlet for 

funds. At the same time- the themselves need- this kind of the full sense Mid those which 
confusion which existed in the protection and fail to see why are only deposiWakiag mstrtii- 
public mind over tbe various they- should contribute the bulk tions, and will limit strictly the 
types of banking recognition of a fund which wouid effeo- use - of the name bank and its 
enabled a number of institutions lively support their smaller derivatives. And it win tor the 
which were regarded as banks competitors. first time set up in the UK a 

only for the very limited pur- T . • , L however that the - fonnal of licensiDg for 

poses of section 123 of the 1967. * JESS ' 1 to carry the ^ deposit-taking institutions. 

Companies Act, and were .not SSk Se ^ wetl as servm& 85 a 

subject to the supervision of JISmJ has response to the recent problems, 

the Bank, to give the impres- ^^ arers contributed And it the new legislation will also 

sion that they were genuine SSSSH fuifii one of e 

banking organisations. of the fund ts likely to mclude ^ ^ under its membership 

Much has been done since a number of features. It would tte European Community, 
then to clear up the problems insiire deposits from any one jyj„rts to bring together the 
exposed by the fringe banking depositor in a bank or deposit- various arrangements for 
crisis in the UK, and the experi- taking institution up to the first banking supervision within the 
ences of that period have led to though in order to keep EEC have had a rather 

a tightening of controls and s*®*® incentive for depositors chequered path, with the initial 
regulation not only in the UK 1° exercise some judgment in dirigiste approach attracting a 
but in nearly every other Placing their money the cover i 0 t of criticism. This has now 
country. would extend to only 75 per been replaced by a different 

The next major step will come- cent of their deposit. method of dealing with the 

when tbe Government gets « ... problem which attempts to do 

around to putting into effect the I.P llill g no more than to set a frame- 

planned legislation on the ® work within which each country 

supervision of deposit-taking A II banks and deposit-taking can establish its own super- 
institutions in the UK The out- institutions would contribute to vjsory system according to its 
line of the new rules was first toe fund, which is expected to individual preferences, 
set out in a White Paper as total, some £5-£6m, with con- The aim is to co-ordinate the 

long ago as August 1976, but tributions in relation to the size systems of banking supervision 

the combination of the need to total deposits but with a ceil- only to the minimum extent 
discuss the details of the new tog of £300,000 on the first call needed to allow free competi- 
arrangements with the banking — which would have the effect ^on for business throughout 
industry and the shortage of - limiting the proportionate tbe Co mm unity. requiring 
Parliamentary time has pro- .participation of tbe big banks, certain elements ’ such as 
duced some delays in bringing .Other than this point,, the licensing, liquidity and solvency 
the plan to fruition. -• proposals are essentially npn- control and the provision- of 
At the end of last year Mr. controversial, with the ' excep- information but avoiding the 
Denzil Davies, Minister of tion of the worries which have earlier specific and complex 
State at the Treasury, indicated been expressed by the finance instructions. Perhaps most 
that legislation would be intro- houses over the posable impact important, the new concept 
duced as soon as Parliamentary on their business of no longer Provides, in line with tbe 
tune permitted, and since then being abie to call themselves general developments of the 
further progress has been made banks. But the effect of the new past few y ears . for co-operation 
in sorting out some of the legislation' will nevertheless ^ 5etween 1116 authorities of the 
details, particularly in relation represent a major break-through vanous countries, 
to the proposals to set up : a for the UK It will confirm the Within this framework, there- 
deposit protection fund. overall responsibility of the fore, there will be scope both 

This bos been by - far the Bank for the supervision of all for those authorities which, as 
most controversial element of banks and deposit-taking iosti- to some Continental countries, 
the proposals. The authorities tutions. thus building into the Prefer to operate a rigid system 
have consistently maintain ed legislation a principle which of control ratios and for those 
that a fund to ensure the avoids the divided responsibili- a® toe Bank of England 
safety of small depositors was ties Which contribute to the whidl want to retain as much 
an essential element in the im- fringe bank problem. as possible of their traditional 

proved regulatory system. The It will make a clear distinc- fle *ibility in dealing with the 
clearing banks have argued tion between those Institutions banks - 
throughout that they do hot which are regarded ‘as banks in Michael BllUldcll 


• w. * 

The market and 
the price 

THE PRICE of gold has stood 
up in the open market remark- 
ably well recently in the face of 
events which would normally be 
expected to have a substantial 
depressing effect These have 
included first the news in April 
that as part of its measures to 
help stabilise the dollar m the 
exchange markets the U.S. 
Administration intend to renew 
sales of the metaJ from its 
official stocks. This move was 
followed quickly by the 
announcement that India inten- 
ded to undertake official gold 
sales, on a larger scale than the 
U.S. but for domestic consump- 
tion only, mainly in an effort to 
cut down the volume of 
smuggling into the country. 

The gold market reacted to 
these problems in the predict- 
able way, but the - price has 
recovered quickly. The consen- 
sus of views was that in spite 
of the further burden of official 
sales tbe level of demand for 
all purposes — including indus- 
trial uses, hoarding and specu- 

lative . investments — -would be complete demonetisation of the. 
sufficient to .absorb the extra metal. and to create a situation 
supply. Tbe price, which had in can be dealt in as 
dropped .to around $168 an a. commodity just - like ann- 
ounce. in the immediate other. Further important official 
response, . picked up to around moves have been made in that 
$lf4 by early this month. • direction this year. 

This was still some way from The changes ip the Inter- 
the yeaxfs .peak, level of $1891 national Monetary Fund articles 
an .ounce, recorded in early of association agreed in 1975 
March, , a. price not so far short were finally ratified. The two 
of the all-time records reached main features of the amend- . 
in the- euphoric conditions ments were to abolish the offi- 
which ruled at the end of 1974 cial price — artificially low at 
when the market was looking $42 an ounce and thn« purely - 
forward to substantial U.S. buy- theoretical — and to free, central- 
ing. The reaction suggests that banks to buy and sell in the 
the market has now learned to open market. Previously, under 
live with tbe regular sales of an interim, arrangements which' 
® by the International ended in January, central banks 
Monetary Fund and other had agreed to a restriction' 
official sources and has reached which meant that they could 
a state of reasonable stability, sell bat not buy in the market 

The recent events also under- The U.S. Administration Was 
line, however, the special satisfied that though some 
character of tbe gold market European countries remained 
The U.S. gold sales again high- more wedded to gold than they 
ught the determination of that would like, the central banks 
country to move towards the had accepted the new rules of 


Affiliated and Associated Institutions: 

Varese • BANCA PASSADORE & C SujA Ge^ihAN A C dIcS^ VARES,N 0 S -P J 
CO. S.p.A. Milan • IL PIEMONTE FIN ANZ! ARIfl S n^ R0 5f ? BERG COLOBNI , 


▲ Banco Ambrosiano is a member nf A , , 

formed by: the Inter-Alpha Group of Banks which is 





*:*a*£ • * \*s 

• Jr'< 

g^4#Kl-WOne to«s mamfes^sgameMer manymigr &*?? ' .—' f - (Ml/* 
M^a?sa{m w foot rales by tftemsgtvesora not enough . . :?4&ti> * '; f -i : ^ '■■ ^>KV-)\ 

• . • -•; :0& «S £ .-■<•. -A 3 

^■^^■vMtft^s vtoe wecome fn.; : . ■ .* * 4 ;; ^ipfe|ig|P^ 

;^.*'; We Wdiitto draw your attention to one ve*y important ptefe ft-: *'< 

. . '. A piece of enofmous potential And better still, onethatls^yjusf; • . ^8|||§k, ■ 

beginning to be played. \*!&~ ! . : ‘‘ m ’ . 

V We are talking about a country with an area of more than 8,512 million square . hj| 

kilometres (3,287 million square miles), and 1 1 6 million infrabtonts os.q potential marten. ™ 
A county that is growing fast In all sectors of its economy, in toe kssl few yeare, the overage 
growm rate of its GNP nas been one of the highest in toe world. . ;.■:. 

■ Av^riehcouRtrywhichJnspiteofremartaibledevelopment^cfiersavastunexpforeci ■ 
potential in its industry, commerce, c^riculture, transportationand communications. • 

. Tbe piece we' re talking about? Brazil Take a closer look at the investment possibilities and toe 
conditions mot it offers. With Brazil, your international - .. gy% bbimi 

business game will be much rr^ a gaMIW HU gggft 

Era of intense competition 

IT HAS been a testing year for 
I he international banking com- 
munity. Once again a large 
bank. Credit Suisse, and a not- 
so-large bank, Banque Lecleic. 
proved that it is still possible to 
lose large amounts of money 
despite ail the supposed safe- 
guards. The spectacular resigna- 
tion uf Ludwig PouIIaio from 
Westdeutsche Landesbank 
proved that even international 
bankers are not infallible and 
Citibank finally proved that the 
profits of a successful inter- 
national bank can go down as 
well as up. 

However. what really 
characterised 1977 for the inter- 
national banking community 
was the competition. The big- 
gest bank in the world. Bank of 
America, summed it up beauti- 
fully in its annua] report: “Ihe 
strong growth of foreign loans 
in 1977 occurred in an environ- 

ment of intense competition 
from U.S. and foreign banks, 
particularly for the highest 
quality borrowers. This compe- 
tition resulted in a severe ero- 
sion of pricing margins and 
generally longer maturities in 
the market” 

Bank of America’s foreign 
loans rose by 16 -per cent last 
year while its domestic commer- 
cial and industrial loans rose by 
less than 1 per cent For its 
main rival. Citibank, the gap 
was even more accentuated. Its 
overseas loans rose by 26 per 
cent while its domestic commer- 
cial loans fell by 6 per cent 
Most international banks have 
been pushing their overseas 
business, although international 
loan demand was far from 

For one thing, the economic 
background has not been 
encouraging. World trade, which 



(Estimates in tonnes) 



New Production 967 


Soviet Union Sales ...'* $40 



Sales by IMF 188 

Middle East 


Sales by Monetary 

Far East 


Authorities 155 

Other Areas 


Official Purchases 


Investors and ‘ , 






Source: Samuel Montagu 

had fallen by 44 per cent in 
1975 and grown by 114 per cent 
in 1976. tailed off dramatically. 
Estimates suggest that it grew 
by no more than 2 per cent 
last year and most of the major 
economies missed their growth 
targets despite reflatinnary 
packages. The U.S. was tire odd 
man out, but even though its 
economy was motoring along, 
loan demand, at the big U.S. 
money centre banks at least, 
was decidedly sluggish. 

Faced with, slack domestic 
loan demand, international 
banks turned their attention to 
boosting their international 
footings. But these days one 
bank's foreign loan normally 
replaces another bank’s domes- 
tic loan. The European tanks 
have been making a big effort 
to build up their market share 
in North America, while over 
in Europe, American banks 
have been undercutting the 
local banks. In Britain, in 
particular, the U.S. banks have 
been able to build up their 
market share at the expense of 
the dearing banks. But most 
banks are finding that it is not 
very profitable business. 

For the time being at least 
the beady growth in Inter- 
national banking profits, which 
lured so many banks overseas, 
has disappeared. The Americans 
were the first to spot the fart 

that international banking pro- 
vided an easy way of maintain- 
ing impressive profits growth 
once their domestic business 
started to stagnate hut now 
that the European and Japanese 
hanks are “ on the game in a 
big way a lot of the fun (and 
profit) has gone out of inter- 
national banking. 

The figures on medium-term 
bank lending indicate that des- 
pite the depressed state of the 
world economy in 1977 a con- 
siderable amount of new busi- 
ness was transacted. For the 
second year running medium- 
term bank credits to indus- 
trialised countries grew by over 
50 per cent and for the third 
year running loans to develop- 
ing countries accounted fur the 
largest part of the new lending 

But while the volume was 
there the margins were cer- 
tainly not. Dr. Henry Wallich, 
the member of the Board of 
Governors or the Federal 
Reserve system who keeps an 
eye on international banking, 
highlighted his concern during 
a speech at the FT Euro- 
markets conference earlier this 
month. ** First and foremost, 
the subject to worry about to- 
day in the syndicated lean 
market is spreads.” According to 
Dr. Wallich margins over costs 
of funds of below 1 per cent 

are very difficult to justify. “ A 
spread of 0.75 per cent does not 
even cover the cost of capital 
of even a very modestly capi- 
talised bank- plus a reasonable 
return on risk premium.” At 
the moment there are a grow- 
ing number of borrowers able 
to raise funds at a spread of 
5 per cent and an increasing 
number of first time borrower! 
such as Botswana and Mauri- 
tania are beating a path to the 

Fortunately, for the inter- 
national banking community 
their overseas loan loss record 
remains far healthier than 
their domestic experience. At 
Citibank, for instance, net loan 
losses as a percentage of aver- 
age International loans were 
0.32 per cent last year (down 
from 0.55 per cent in 1978) 
compared with a figure of 1.02 
per cent for domestic commer- 
cial loans. Tbe repercussions 
of the 1975-76 property debacle 
are now tapering off. although 
in individual countries such as 
South Africa and Australia, 
banks are. still making some 
provisions. Citicorp, for ex- 
ample. lost $29m in Australia 
and Barclays’ South African 
operation had to make pro- 
visions for local property bad 

debts. But generally, banks 
have not bad to make special 
provisions for their inter- 
national clients. 

Despite the appalling state of 
some of tbe world's major basic 
industries such as steel, chemi- 
cals and particularly shipping, 
the banks appear to have 
escaped virtually unscathed. 
Part of the explanation is that 
much of their lending is 
government-guaranteed in some 
way or another. 

The shipping industry is a 
good exam ple. Even though 
there is a tremendous surplus 
of tonnage and freight rates 
often do not cover operating 
costs, the banks have not been 
forced to write off much of 
their debt as yet. Part of it 
is government-guaranteed ship- 
building credit and where com- 
panies have got into deep finan- 
cial trouble, such os in Scan- 
dinavia, the Government has 
stepped in with extra support 
in the form of Norwegian 
Guarantee Institute to guaran- 
tee the banks' loans. Even tbe 
UK authorities are prepared to 
grant deferments on capital 
repayments for some UK ship- 
pine companies. 

While international banks 
have been involved in a con- 
siderable amount of sovereign 
yisk financing nrobably the 
most competitive market wnich 

most big banks have set their 
sights on is (he prestigious 
group of multinational com- 
panies (MNCs). As a group these 
companies have around $3U0bn 
of debt outstanding and duiihK 
tbe 1970s their growth rate has 
outstripped tht?:r domestic 
economies by a factor of three 
to five times. 

Because of their r apid growth 
and increasing appetite for 
bank debt, this type of company 
tends to change its bank re- 
latively frequently. According 
to a survey in Fortune magazine 
82 per cent of ihe t'»p 500 com- 
panies had changed their bank- 
ing relationship in tbe previous 
nine years. This sort of mobility 
keeps international bankers on 
their toes. 

Most big international banks — 
i.e., the 50 ode Institutions with 
assets of over $15bo — have been 
giving considerable thought as 
to how to best service this 
market. Whereas any banker 
can hop on a pi ace and sign 
a balance of payments, loin, tiie 
banking relationship with, a big 
multinational client tends to be 
far more complicated. 

To he effective banks need a 
local presence in »i:k| of the 
countries in which the client 
company is operating. In addi- 
tion. the local p-eronce needs 
to be more than a listening pest. 
It Deeds to .offer the lull range 
of services whicn a big com- 
pany might need. 

This sort of thinking has 
dictated the overseas expansion 
of the big banks over the last 
few years. Most of them have 
been establishing a base in all 
the major money centres. The 
U.S. banks were the first to 
move but now virtually every 
big bank has followed. One of 

the last in the field was Midland 
Bank. In the past it relied 
heavily on correspondent rela- 
tionships and its links with 
other European banks through 
the Ebic banking club. This 
arrangement has advantages in 
that it does not involve much 
capital outlay but the disadvan- 
tage is that a bank loses con- 
tact w'itb its multinational 
customers when they move into 
other markets. Consequently, 
Midland has opened a full 
branch in Tokyo, 3 subsidiary in 
France and is committed to 
extending its representation 


Since the majority of the big 
multinational companies are 
headquartered in North 
America, the big European and 
Japanese banks have been put- 
ting a lo-t of effort into building 
up their U.S. representation. 
Since the start of the year (here 
have been two major bids fur 
American banks. Hongkong and 
Shanghai for .Marine Midland 
and National Westminster for 
the National Bank uf North 

Foreign banks have tried to 
grow organically in America but 
this is a slow process and a 
number of them are now coming 
round to accepting that they are 
only going to establish an effec- 
tive foothold in America via 
acquisition. However, the price 
is high as National Westminster 
is realising. It plans to pay a 
premium of 60 per cent, over 
net worth. 

William Hall 

the game and would not attempt 
to manage the market; they 
could therefore be left free to 
deal. Nevertheless, the import- 
ance of official sales in helping 
to determine the market price 
demonstrates exactly why gold 
is not a commodity like any 
other. The market is always 
potentially dominated by exist- 
ing stocks. World official hold- 
ings are reckoned to total 
around lbn. ounces, or nearly 
50 years' production at recent 
rales, while on top of these 
there is an unknown but prob- 
ably equally sizeable amount in 
private investment holdings. 

The ability of the market to 
absorb the official sales is there- 
fore a significant pointer to the 
relative buoyancy of the 
demand. The IMF auctions have 
been bringing around 525.000 
ounces to the market each 
month. The U.S. plans to sell 
1.8m. ounces m a series of six- 
monthly auctions, the first of 
which takes place tomorrow 
and may consider further sales 
after that. India, meanwhile, 
for rather different motives, is 
expected to unload a total of 
2.24m ounces to meet internal 
demand and 10 discourage the 
smuggling which is made attrac- 
tive by the country's high 
internal price resulting from the 
ban on imports. 

The aim of the U.S. plan was 
essentially related to the need 
to stabilise the foreign exchange 
markets after a period of some 
months in which the dollar had 
been under consistent pressure. 
In itself the amount which will 
be raised by the sales is modest 
in relation to the country's 
balance of payments deficit. But 
the gesture, it was argued, 
would help Lhe dollar and act as 
a symbol i>T the Administration s 
determination 10 do something 
about the deficit, while fitting in 
mcely with the aim of cooling 
speculation jn rhe gold market 
and wjth the long-term policy or 
demonetising the metal. 

The weakness of the dollar 
was beyond doubt the mam 
ractor which encouraged the 
rise in the price of gold during 
last year. The metal again 
acted in its traditional role as 
an outlet for investment funds 
in a period when the exchange 
markets were in a state of un- 
certainly and occasional tur- 
moil; but since the price is 
normally expressed in dollars it 
somewhat exaggerates the move- 
ments in relation io other 
stronger currencies. Over last 
vear as a whole the average 
price worked out at $!47.i 1 an 
ounce, ranging between a low 
puini of $129.40 in Januaiy 1977 
and a peak of S16SJ5 in 

The average represented an 
increase of some 18 P er cenL 
nver the comparable figure for 
1976. Because of the deprecia- 
tion of the dollar, however, the 
price in terms of some of the 
stronger currencies such as the 
lVu t schema rk and the Swiss 
franc showed an increase of 
only some 10 per cent. It is 
noticeable -that on this basis, 
taking the Swiss franc for 
example asn measure of under 
lung value, the gold price has 
remained on tbe whole remark- 
ably stable over the past few 

years. . , . 

One result of the weakness of 
or the dollar, and the factor 
irt.iniified b.v buMiOfl 

dealers Samuel Montagu as 
perhaps the angle most-impor- 
tant feature of tbe market last 
year, was a substantial' increase 
in activity on the futures ex- 
changes in the U.S. The market 
there has taken some time to 
exert the influence expected, 
after the initial disappointment 
in 1975 when the U.S. public 
did not respond well, to its 
freedom to buy the metal. But 
the influence of U.S- activity 
became quite significant during 
the second half of last year- 
indicating, Montagu suggested, 
that ” gold had finally been ac- 
cepted there as a commodity to 
be traded actively.” 


This activity and the growth 
of deitiand elsewhere was 
closely related to the periods 
of weakness of tbe dollar: After 
a fairly quiet start to the year, 
demand for gold began to exert 
a marked influence as early as 
February. Late in that month 
the price had risen to $140 an 
ounce, and as this was equal to 
the highest levels reached in 
1976 it was thought that there 
might be some resistance tu 
further increases. However, 
the price moved up to around 
$148 in Marx* before any sig- 
nificant reaction occurred, and 
even at that time a consider- 
able proportion of the interest 
was coming from the U.S. 
futures markets. 

After a reaction, the rise was 
resumed to reach tbe $153 
level in late Mart*. There was 
then a setback on suggestions 
That the U.S. could renew offi- 
cial sales, followed by a fairly 
quiet period. But there was 
persistent demand for hoarding 
purposes, particularly from the 
Middle East markets which 
appeared to be supporting the 
price at around $145. However, 
the price slipped below this 
level in May, and in mid-June it 
dropped to $137.10. not far 
above the first quotation of the 

The price remained relatively 
depressed for a period. But in 
the middle of July, the weak- 
ness of the dollar began to 
manifest itself in a considerable 
way. It .took some time before 
this was. firmly reflected in the 
gold price. But there was a 
steady increase up to early 
October, when the price reached 
$155. After some reaction, the 
market again took off in late 
October, helped by some 
encouraging results from the 
IMF auctions, and in active con- 
ditions the price surged up to 
its peak in mid-November. 

This was followed by a sharp 
fall in the most hectic condi- 
tions encountered during the 
year. But by late December 
the weakness of the dollar again 
began to be reflected in the 
gold price, which reached $166 
an ounce. This influence has 
continued into the present yean 
but circumstances have changed 
in the last couple of months. 

The prospect may be, there- 
fore, for rather less turmoil in 
the exchange markets surround- 
ing the dollar, though there 
may well be further periods of 
uncertainty and unrest over 
currencies which will again in- 
fluence the gold price- Mean- 
while, however, the mark et has 
taken the changed circum- 
stances quite welL 

Michael Blandeo 





Financial Times Monday May 22 1978 





J VL '* • 


, ,1 

Hie Manufacturers Hanover Way of \faridwide Banking 

tfJfyL \i r Geobanldng. 

Sfs/jjjj; '•' v . It is money moving and 

working around the world. 

A • It is the Manufacturers 

aSjp?i£.- v / Hanover way of worldwide 


Unlike most major international 
banks, Manufacturers Hanover does not 
enter a region or a country with a rigid 
operational philosophy. 

Instead, it adopts a way of banking 

that works best for a particular place at a 
particular time. 


It is wholly responsive, since it fine- 
tunes banking to national and regional needs. 

It is flexible, admitting swift adjust- 
ment to changes in prevailing conditions. 

And Geobanking is synergistic, 
enabling Manufacturers Hanover to marshal ' 
strengths from the worldwide resources of a 
$35 billion organization. 

The banking source-Wbridwide. 

for international banking 

Amsterdam- Rotterdam Bank NV 
London Branch: 29-30 King Street, London EC2V8EQ 
telephone 01-606 8833 telex 887139 

amsterdam-rotterdam bank nv 

Branches, subsidiaries or representative offices -in Antwerp. 
Curacao, Jakarta. London. Tokyo and affiliates in 20 countries* 


Financial Times Monday May 22 197S 


London remains a 
powerful magnet 

JUDGING BY the steady stream money on their domestic clear- the UK authorities’ decision to there are disadvantages swh a» 
of foreign banka that continue ing bank operations or they switch a large part of their the relatively nig ^ rate or in- 
to beat a path to London, the were going to lose business. Export Credit Guarantee De- Ration and the increasing tax 
City's role as the world’s major' They opted for the latter pa rtment fE CCD) buyer credit burden. Business w men had 
i international financial centre course. As money market rales financing on to a foreign cur- once come to urnmn ia now 
continues to be a powerful mag- declined, base rates lagged rency basis. This used to be going to otner cenires. in 
net. behind, and for much of last confined to sterling and was the Europe both Paris «“*»■ 

Last year a new foreign bank year they were out of line with special and profitable preserve bourg are competitors, and. 
opened roughly once every fort- competing rates. Big corporate of the UK clearing and mer- al though tncy are no wncre near 
night- According to The Ban- clients soon fouod that they chant banks. However, under as large in Eurocurre cy terms, 
ker's annual review of foreign were able to borrow more the new rules foreign banks they do pose a tnreat. 
banks, 28 foreign banks hung cheaply from the foreign banks, are now allowed to compete for Further down the line New 
up their nameplates in the City in particular the American the new business, and since the York’s embryonic plan to estab- 
last year, plus four new censor- banks, which drew their money American banks have a natural an offshore banking enclave 
tium banks. Among the new- from the highly liquid whole-- dollar base they are well placed could divert a significant 
comers were some very well sale money markets. The situa- to take advantage of the amount of business away from 
known names such as Holland's tion was aggravated by the fact scheme. London. There are still a num- 

Amro Bank and West Ger- that British industry was flush Since the international bank- her of bridges to be crossed 
.many's Bayerische Vereinsbank, with fuods and demand for ing market has been highly beFore the plan is put into 
plus some not so well known bank borrowing was unusually competitive with low loan action, of which far and away 
names such as Turkey’s Yapi low. Consequently, the foreign demand and pressure on the most difficult will be the 
Ve Kredi Banfcasi and South banks accounted for well over spreads, clearly foreign banks Federal Reserve's reservations: 
Korea’s Cho-Heung Bank. At a fifth of all new sterling lend- in the City have been under nevertheless the plan is well 
the time of its last roll-call The j n g in the year.. to March,. 1978, special pressure to build up advanced. 

Banker counted 285 foreign even though they account for their UK domestic business. A 

banks directly represented in jess than a sixth of the market number of the larger hanks IffiCnOrG 

the City, and another 73 banks normally. Whereas the London have now expanded into the ^■u***'* 

represented through some 37 clearing banks increased their provinces and up into Scotland. Since 1970 the offshore 

consortium banks. The number sterling advances by £2.3bn. the The Scottish banks because of business of U.S. banks booked in 

of banks in the City has more foreign banks loaned very their smaller size are probably the Bahamas and the Cayman 

than trebled in the last decade, nearly Elbn. Compared with feeling the competition more islands has jumped from under 

and roughly twice as many 
foreign banks are now repre- 
sented In London as in New 
York, its major rival. 

London is still the dominant 
Eurocurrency centre, transact- 
ing just over a third of the 
business, and this clearly re- 

$5bn. to close to SSObn. and this 
is the business which the New 
" 1 York authorities hope to lure 

U.S. BANKS* OFFSHORE BUSINESS (SbnJ ?Sta)°Vato he iU& bl to“ 

1969 1970 1971 1972 1973 1974 1975 1976 1977 book US Offshore 

loans from their head office 

mains one of its major attrac- ^ 24.1 28.4 34.5 43.7 61.7 69.8 74.9 81.5 90.5 there is less need to maintain a 

Sp 4 .! ^ ...... U U «,m 23.8 31.7 15.2 66.8 1U '»W dUPli “ te 

foreign currency deposits in Other 9.3 HJ2 18.2 23.2 36.4 50.4 56.4 71.1 80.9 p !: . .. ™ " ' 

London — four fifths cf the total; - «nn q i«?j q ,7« sore 49470 ° n y tl « 7 ie L w i leu mer 

The London branches of U.S. TotaI 3b ' 4 47,4 6L2 80-0 1*1-9151.9 176.5 -19.4 247.0 lhe Nrw York scheme will pose 

banks alone, have foreign cur- ■ October. t'And Cayman Islands. ? threat to London's pivotal role 

rency deposits of £42.4bn. m the Euromarkets, but it 

which is roughly eight times 1 should not be underestimated, 

the size of the London clearing International banks and their 

ba ^ s / ore tep currency books. t h e accepting houses, which acutely than the big UK clear- flthnuah^J c Ve /Z n kers mav ore- 

The importance of London as only managed to lend an extra ing banks. In his oral evidence f Jf 1 u , I T r | r i rit i ftr „i livinB 1 ^ ijin 

are°dirertly°reprewnted SSTmSnteS' “ Am ert«n “ft P™™ 1 « for “*“?'«• 

City. In addition, eight of the j" “ “SI ! re «J5!I iw 21 1 JL utvl became more onerous or the 

10 knnnfAA<* j • _ ini As & siTiiip they sts/ti . . - yfiu name it, we nave » «. inAnip-'Pc ctiii 

n iSSSSf « CTd twice as mnch money to got it in Srotland.” With $7.5bn £** rate 

n London thr^h a sharehold- ^ chemlcaf industr i as of assets the uk operation of father. 

do London clearing -banks. Citibank, for example, is prob- « «k number of new ; banks 
TJf Pmiori S and they ,end virtually as much ably larger than the combined opening offices is any guide the 

ISh «SlS y ^« b J 25 toc clearers to Uie food, operations of Royal Bank of Citysforcignbanklngcf-mmun- 

rons^reble amount ^rta^nd drinlt and tobacco industries. Scotland and the Bank of Sent- «ty is flounstung, but there is no 
Tn i ts recem eridence to With interesf rates once land, and is obviously well denying that the proportion of 
the Wilson c l?t« th rising the clearing banks ‘ placed to poach UK clients from international business booked in 

Committee* of lmST C tartal are obviously * Well placed to the smaller UK banks. has ben steadily declin- 

Bankers reckoned that the wln 5orae of this business.- Although the foreign banks J* v ® r th ® last few year, 
invisible earnings of the since They have the advantage have increased their penetra- Apart from the taxes and etn- 
London - based ^international of a relatively large and stable tion of the domestic UK market Payment aspect, the foreign 
hanking community is about currenT account base. However, over the last Few years they are banks have played a major role 
£S00m Der annum. the foreign banks have been more cautious than they were. [ n the development of the City s 

H prepared to undercut the clear- A number of them were hard uuernaiwnal reputation. 

AoarPCeivP ins banks - using cheap loans as hit by the UK fringe hank and They have often introduced 

CDolVC a Toss leader, so thar they can property crisis, and nowadays it new ideas. The concept of 

While the City’s attractions bui, d “P t neir client relation- is very much a case of once medium term lending was ira- 
as an international financial ships. Once they have a Toot bitten twice shy. Head offices ported by the American banks 
centre have been well rehearsed the door they can then cross- now exert much tightens control and..after some initial hesitation, 
it is generallv accepted that bv sell their other more profitable over their London branches, adopted by the UK clearing 
normal banking criteria, the services and this is what wnr- For most banks their' raison banks for their domestic cus- 
City is hopelessly over-banked, ries the clearing banks. One d’etre in London is still their tomers. Similarly, certificates of 
Competition for new business of two. in particular the Mid- Eurocurrency business— this is deposit and currency swaps, 
is exceptionally aggressive, as land Bank, have been counter- what they are good at UK banks might rue the aggres- 

tbe London- clearing banks attacking and reportedly secur- Unfortunately London's cen- sive competition of the foreign 
learnt last year. When l T .K. ing new corporate lending busi- tral position in this field is banks hut they have learned a 
interest rales plummeted from ness on very fine terms, which under attack. The city's natural lot from the foreigners and the 
15 per cent to 5 per cent during some of the foreign banks would advantages, such as language. City’s international reputation 
1976-77. the big clearing banks even find hard to justify. climate, good staff, cnmmunfca- has benefited accordingly, 

had to’face up to the fact that The battle for UK corporate tions and geographical position W'HS H II 

they were either going to lose clients has been intensified by have been well rehearsed, but VYUltani rlRII 

£S00m. per annum. 



Advantages continue 
to be exploited 

FOr ALL the rivalry of foreign 
financial centres — a number of 
kites are being flown at present, 
(< instance, about Lhe develop- 
ment of New York as a possible 
"offshore" banking zone — the 
City of London remains firmly 
established as the key centre for 
international finance. 

The City's emphasis shifts 
from lime to time. These days, 
for example, it is the insurance 
industry which brings in the 
largest revenues, rather than 
banking, or indeed than the 
stock market which in recent 
times has played a much more 
domestic role than in its days of 
international prominence — now 
lung past. 

Ciues to relative prosperity 
can be found in property rental 
values, which continue to be 
much higher for offices in the 
City thin in London’s West End. 
And within the City the highest 
rents are to be found in the 
streets immediately surrounding 
Lloyd's, where brokers and 
underwriters agencies clamour 
fur space. In this sense the 
grey mass of the Bank nf 
England no longer marks the 
area of greatest importance 
within the City. 

Whatever the current trends 
within the Square Mile, how- 
ever, the City continues to 
exploit the advantages which 
have stood it in good stead for 
centuries. And it has managed 
to add some very modern vir- 

tues to its traditional ones. 

A stable political background 
must be a key factor in the 
City's appeal to international 
traders and financiers. Britain 
has no history of violent revolu- 
tion. and there is no prospect 
of really hostile governments 
coming to power — as there has 
recently, for instance, in France 
and Italy. 

The British legal system is 
highly developed, and less 
expensive than, say, the Ameri- 
can alternative. Within the 
City there is a very long tradi- 
tion of international orientation. 
And there is the intangible but 
crucial factor of fair business 
practice. While it Is never wise 
to be complacent on this score, 
a reputation for integrity clearly 
counts for a great deal when 
standards of business ethics 
around the world are the sub- 
ject of increasing debate. 


In the modern era other 
advantages have helped the 
City. With the growing econo- 
mic and financial power of the 
U.S. the English language has 
become commercially even 
more important. Geographically, 
too. London is well placed close 
to other European centres, and 
comparatively easily accessible 
by air from the U.S. and the 
increasingly important Middle 
East countries. The time zone is 
such that only the Far East 

financial centres pose problems shrink — at least in terms of 
in the maintenance of telephone numbers employed — and its 
contact.. international role as an inter- 

In terms of operating econo- media ry in sectors like Kaffir 
mics, London also has arivan- shares has tended to be lost to 
tages. Rems are high, but in other centres, notably New 
comparison with rival centres York, 
like Frankfurt and Zurich 
labour is very cheap, partly TTfltpfl 
reflecting the long-term weak- lAaicu 
ness of sterling. Moreover the Hopes were fairly high in the ] 
personal appeal of London to City last year that with sterling 
the mobile international exeeu- beginning a new era of strength 
tive tends to be quite high, in on the back of the North S« 
terms of the quality of life nil boom, the investment cur - 
obtainable by somebody who. rency regulations would be pro- 
perhaps, is not quite so con- gressively abandoned, as indeed 
strained by the U.R. tax system is required by Common Market 
as J? natlve ^ ould bo - principles. The hated 25 pet 

The regulatory framework cent, surrender rule was in fa* 1 
has also bwn important. The revoked last December. But 
Bank of England has main- with sterling again turning 
3 K Ve ^ flex ^ f approach weak there now seems littte 
which ht 'Pe of more radical Maces' 

Sr thl nil « t d hi h i e ®!" er ?f nce S'ons over the investment 
of the City as the leading Euro- renev premium 

pSc approach hi ‘X , /he instability of sterling g 

the insurance sector. wUhf nr C ™ slltut ? d ?« e ** 

instance a relsvaiirtn l* tor raain handicaps for the Cit> ® 
rency controls in th* ^ f L Cur r main taidins and increasing ® 
in?rea“d volarilitv ™ lie . h of ™>“ in the international 
bSSZLESSP m thc J-l --Kota. Foreigners ag 
It is sienificanf iw,* i " ave 8eeri s 0 ,n ® benefits Jf 
I'K regulations have been* Ugh! lower " peralln l|S 

s srsa 

tt&zrJFz -as 

the stock market has tenriS ?* finan, '- in S trade. Some -L • 
nas tended tn months agn UK banks *** 


Financial Times Monday May 22 1973 



aying on the 
world stage 

^' e5t ' sorlium banking was designed sortimn group can no longer squeeze on profit margins on 

arluniH 1 " «•*»?! m* •* v lans lu - pay w meel a reaI need. Even some be justified. 

MakL .n H " ^_ bUy , a I !l a ? orjl -': of tlle big banks, including Several merchant 

MilKo in il,„ M 7 \ . — ’ * ^ Ultri cxi^uiL uouu urfinva mvuivtD 

National Bmk- „f°\t 1 '^k-based those from the U.S.. were rela- which had contributed their ing activities 

has r ‘r k ^ 0 ? h ■) U,Crica V vc]y incx P c, nenced in the new special expertise to consortium difficult to mai 

underlined again kind " ' ' ' 

the cuntinumg 

of banking which 

lending business. Some of the 
banks banks involved in general lend 
have found it 
maintain their profit 
was groups have been pulling o'uL levels in these circumstances — 

for Hu- 
ind i 

changed under the recently remained relatively 

Hiai ^Mi... L L l ‘ , , d K f ro "\ the l > pe o£ overseas retail control of Bank of Tokyo— and high and stable, have been able 

thn.Ti-.i, rcta ‘'. rft-puMt banking familiar to the British Rothschild, Barings, Kleinwort, to perform well. 

, rsb,p ,,f a doI,ar banks and from the experience Benson and Charterhouse Recent events 

Receut events have tended io 

l»« lished expertise — For example, among ‘tire 33. b^wi* an SnSTbXvSp TbaE 

cemre "n Nei- Yurt™ S [TT h °* d ° n “ ercbant in t c . re «“>S lreBd to f wards tteir shareholders. A few of he 

The move hW,li-his the either pubog out of consortium ban * s , not2fcUy Orion and Euro- 

marked Xan-e? whi’ch hi™ The environment has °P^ on f or l aJan l° v f r ™ pean Banking Company tin the 
been takiif° place in the f -' hanccd now - however, and the control m order to develop EBIC fold) have developed to 
character of 1 nternatiuna? bank 6 oJd dcbate has been revived ^eir own in^ouse internaUonal ^ po int where ^eir own size 
ing aTan iLreas^ n!!mbe? oF over lhe rationale con- merchant bankmg capacity. and status enables them to stand 
banks have 0 gained^ the evneri- sortmm banking. To begin with, S UtSt f^J ng re S f 0D ^ om in 1,16 raarkeL The y 

encc and self nmfidew/ to some o£ the consortium banks ®F p l e . ^ as been provided by tend t0 dislike the consortium 
Sndertak" cx?ensS?e worid“wide have Qot over the long ™ which bought tag and regard their ownership 

operations °i'n their own ri-ht proved a11 that profitable an in- out the other shareholders in ^ irrelevant to their day-to-day 
rather thin JelriSe nn ^ vestment for their shareholders, one of London's consortium busincss _ 

r ?j r tllan re *3ing on partner- lbe shareholder-* hav“ be- Sr° u P s . London Multinational. . , .... 

ships and relationships with ™ cwa^Sy reluctant to ^ Shareholders besides ^ a slightly different category 

other hanks. A similar point is c ? n ' e *[ ,creas, ?SiJ _ remciant io w re Credit Buiw there are several consortium 

marie by the large numbers of 15 that are de Baring Brothers and another banks with shareholders which 

foreign banks which are queue- „ mers ; . ■ ... u.S. bank Northern Trust 0 f ^ not ,n ^ first ran * of Inter- 

in” up to set up shop in the City Many of tb e shareholding Chicag0 ^ former consortium national banks, and would not 
of London. banks have outgrown the need . g j. devei(H)pc ] ^ be able to set up full inter- 

Ti is believed that at least 30 rely on joint ventures in chemical Bank International, national representation of their 
hanks currently have plans to urder develop their ^ter- . nulled out of own - these cases the consor- 

fnrm a London representative national banking business. They Western American one of the tium a special role. An- 

nfiivi-. nr to upgrade their {J avtf become quite capable of 0 j dcr larger Consortia, to gro»P of banks includes 

present representation to a full developing their international 3eave contro | ^th Bank of 111056 which have a clearly 
branch operation. The rush into activities on their own, and the Tokyo and National Bank of specialised character, either con- 
Lunduu is being intensified by recent growth of world-wide D et ^o;^ Bank of America centrating like the International 
the pressure to get a share of braoch banking provides which jft the eariier penod Energy Bank on a particular in- 
thc iuternational banking busi- evidence of the trend towards undent extensive joint and dustry, or on a geographical 
ness at a time When many building up the individual rep- co . operat j ve arrangements, has region. 

national economics remain rela- rescntaUon reqiiired.^^ been taking particularly The two Scandinavian groups 

tively depressed as well as by Increasingly the sharehowing vig orous act j on to unwind its in London, for example, con- 
the concern of the developing banks have found themselves involvements and to concentrate centrate much of their energies 
countries to get a foothold in coming into competition with on its own international mer- °o that area, and there is a oum- 
ihe international eurocurrency *. r nffsnools for lending chant banking business. ber of banks which have special 

markets. business This trend has been The nuin , bers 0 f consortium interests in Latin America. 

. increased by the growing ten- ban fc; j n London have as' a re- These include Libra Bank, Euro- 

1 onnpcfjftns Jf ncy ? f consomum banks su , t 5een significantly reduced. Pean Brazilian, Euro-Latin- 

V. themselves to move towards a Given ^ new dimate of american and International 

It is noticeable, moreover, greater reliance on specialised j ng j t unlikely that there Mexican. Finally, there is a 
that many ut the banks coining merchant banking and .advisory wi]1 ag^ ^ a m 0Ve t 0 set up growing group of banks with 
to London are relatively small services to provide them with older type of consortium Arab connections developing as 
by international standards. Only 166 memne, in contrast with g roup aimed simply at provid- the oil-rich States make their 
a few years ago these wuuid their earlier emphasis on the ]ng a vehicle for participating moves to play a full role in 
have been expected in rely on straightforward business of jn tbe Eurocurrency markets, international banking, like the 
correspondent relationships building up their medium-term Nevertheless the consortium Saudi Internationa] group’ which 
with niher banks nr on mure man books. . concept is likely to continue to has the Saudi Arabian Monetary 

formal connections rather than One direct result nf ihisJias have a role which may include Agency as 50 per cent share- 
trying to go it alone. been to create problems, for the a . growing trend towards holder. 

The need for co-operation and L Iv merchant banks whjcb par- specialisation both among those There may well be further 

for assistance from other banks ticipaled in the consortium groups which has been set up changes among the London- 
in selling up in the interna- groups. They have found that with a particular purpose in based consortium banks as the 
tional markets was one of the the consortia have increasingly mind and among the more new pressures continue to make 
main reasons for the fashion a been offering ihe same kind of generalised consortia which are their effect but the general 
few years ago for creating cmi- services to pni ential clients; and developing their own areas of pattern seems likely to be to- 
sortiuni hanking operations. For they have found that in some specialised knowledge. wards the creation of increasing 

many small banks the technique eases their offshuots have out- At present. like the rest of specialisation as established 
of psiabhshing a joint operation grown th--:r own parents. The the international banking com- banks move to make their in- 
with a number of other hanks, merchant banks operate with munity, the consortium banks dividual mark on the banking 
usually bringing luceiher relative^', modest capital bases, are feeling the effects of the market, underlining the growing 
several different countries, pro- and in- a number of cases it difficult conditions in the bank- diversity of the consortium 
vided a way of gaining access has hv ; »onio evident that the ing markets as a high level of concept, 
to the markets on a scale which commitment involved as a liquidity and competition for * , 1 DI . 

they would not have been able shareholder in a major con- business bring a renewed MlCiiael jplanaen 

to undertake individually. 

Even for some of Ihe bigger 
banks, the co-operative type or 
arrangement had a number of 
attract ions. In Britain, for 
example. Midland Bank, which 
traditionally has relied more 

ihan most on correspondent barred from financing in national financial markets. In the influence of American banks 

connections m providing an alerting trade between foreign some cases these are sunny in the City, and therefore the 

international service for its cus- countries. To some extent the offshore tax havens like the shift in the currency mix has 

tinners. i< a strong member of growth of London as a banking Bahamas, which have a certain led to some drift of business to 

The KBit’ European ro-operafive centre has been at the cost of appeal for tax reasons— not to Continental centres like Zurich, 
group and participates in this seeing the U.S. banks increase mention .their climatic attrac- Frankfurt and Luxembourg 
organisation's extensive range their share of the international tions. On the other hand they Meanwhile thi Cily continues 

«>i joint ventures. marker land even of the UK lack the social and financial pu jj j n amounts of in- 

Similarly. Barclays. Munich a domestic market). infrastructure that gives the visible earnings, servin'* tn off- 

maiur ini emotional bank in its The sterling crisis nf 1976 City such a strong appeal, and se t at least nan of the visible 

iiw i) right with a strong inheri- provided a severe test for the so long as the UK company tax trade gap which has been a 
lance of overseas banking, parti- City’s status. It caused great burden is kept reasonably low normal feature ■ of the UK 
cipaics in the A be cor European problems for financial such havens are likely to economy. Official estimates pub- 
grouping and its various off- companies in offsetting the remain only of fringe lished by the Central Statistical 
shoots. And Nat West itself is a balance sheet impact of importance. Office suggest that total net 

fniindvr member of one or the currency gyrations i not helped Nominally, UK corporation earnings of the financial insii- 
bjcrc&t consort ium groups in by the Inland Revenue's attempt tax is 52 per cent, but this is tutions which make up the City 
London, i irion Bank, along with to claim tax on illusory not especially high compared have been on a regular! v m- 
P'lrtncr-i including the Chase currency gains of banks). But with rates payable in some of creasing path >n recent years, 
Manhattan. vnee again the City appears to the competitive mainland reaching £1.5^5bn in 1976 

have survived with its status centres. In many of these, as it Of this total Mu- insurance 
rntlPPnf largely intact. happens, companies are liable industry— taking the companies, 

VUtltcpi There are of course many to extra local taxes. In any Lloyd's and the brokers to 

Ai tlic lime when it was most rivals competing for the City’s case much UK corporation tax gelher — accounted for £60bm, 
popular, the concept of con- disproportionate share of inter- can in practice be deferred while UK banking institutions 

[almost indefinitely through, for earned £408m. twice as much as 
instance, leasing schemes in 1975. Other narable earners 
whereby the lessor becomes were the commodity markets, 
entitled to capital allowances, generating net earnings of some 
rjT, £200m, and the Baltic Exchange 

1 hreat at around the IloOm merk. 

. , . . T j , , When they are published 

. ^ toff threat to London s role later this year, however, the 
m the Eurocurrency market figures for 1977 may not be so 
would only come if the impressive. Banks are thought 
Americans took steps to take to have earned less in The Euro- 
much of the vast overseas dollar currency markets, for instance, 
holdings back within their own partly because of lower interest 
boundaries, as is indeed from rates and narrower and more 
time to time proposed. Arguably competitive margins. The Baltic 
the City of London has only Exchange and the commodity 
fitown so important in this markets will have been 
sector because the Americans adversely affected by the world 
have been too rigidly minded trade recession. The nse jn 
to relax their tight domestic sterling late -a the year will 
banking regulations in an bave reduced the sterling value 
attempt to attract the footloose foreign currency revenues. 
Eurodollar deposits. ,. S SJ- ® vei1 ™ ,he basis of 

A current proposal, with stghUy lower oanwigs tie city 
exactly this problem in mind, o£ Jf n ??° wl]1 r ™? m a 'W 
is to establish a monetary^ 

trade rone in New York (Sot to S™, 1 ”*“*“*5*\ l « 
montino hidden penalties— that the City 

nabonai transactions wonld to a amorous raaoofaeumns s«- 

5 1 "? be nnresm « ed tor of the economy, which ;s 
and outside the tax neL i eft to languish. But in a period 

Perhaps a more immediate when employment in mamifae- 
danger is that the weakness of luring industry appears to be 
the dollar has already led to a on tile wane World-Wide, the 
loss of the dollar’s share of the City’s large share of the inter- 
Eurobond market relative to, nali onal financial services in- 
say, the Deutsc hma rk or Swiss looks increasingly 

fnme. The dollar sector is valuai3le * 

London’s strong point thank* to 



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in those ifalian regions, 
that count for much. 

330 branches... and behind each counter the organization and the efficiency of six 
leading popular Banks, which have joined their programs and work in the 

These six Banks, together have not only the size of a big Bank, as regards 
Customers and Service, but something more, too: the opportunity of being in 
close relations also with small firms , o< being present where there is the real 
economic life. Lombardia. Venelia. Emilia produce, alone, 37% of Italian output, 
and carry out 48% of Italian Foreign Trade. 





The newest PHP 

from 5 pm tot am. 

While you relax on GMT, PHP 
Hong Kong is hard at work. 

A branch of Pierson. Heldring & Pierson - 
commercial and merchant bankers 
in The Netherlands -PHP Hong Kong- 
has four specialties: Syndicated 
loans. Deposits. Foreign exchange and 
arbitrage. Euro and Asian dollar bond 

For information contact 
General Manager A.A. Best 
Pierson. Heldring & Pierson MV, 

1517-1521.Swire House, 

Connaught Road. Hong Kong. 

Telephone: 5-225191. Telex: 55887. 

Pierson, Heldring & Pierson NV 

Hong Kong Branch. 


Bcyi>’seiilalivo often in Indonesia? 

; Bonk Building, SO Jalan Iman Bonjol, Jakarta. 

Barry Rfley 

Banc« Agricola Mantov3na 
Banca Popolare di Verona 
Banca Popolare di Eergamo 
Banca Popolare di Modena 
Banca Popolare di Sondrio 
Banca Popolare di Vicenza 

six Banks and a common work, 
at the big enterprises ’. as well as 
the smalt industries' service. 



Financial Times Monday May 22 1978 


Banque Nordeurope S. A. 


Feellesbanken for Darimarks 
Sparekasser A/S. Copenhagen 
Union Bank of Norway Ltd.. Oslo 
Sparfaankernas Bank AB, Stockholm 
Saastopankkien Keskus-Osake-Pankki 
{ SKOP ). Helsinki 

Girozemrale und Bank der Oster- 
reichischen Sparkassen A.G., Vienna 
WestLB International S A, Luxembourg 

Banque Nordeurope S. A. 

31. Grand-rue. Luxembourg 
Telephone: 2 76 96. Telex: 1771 

Foreign banks given access 


to U.K. business 

OVER THE PAST IS months market force for a year or two. currency financing. The major are there too, but among those export jdits win J* hT which^of ^hese^ 

Britain's export finance business Others predict that within the advantage to them is that the who have made initial ap- much as »0 to 85 percentof n as ^ J 

hai, been thrown open to the next year or so they will have sterling scheme gives them proaches to ECGD are Banque pC con^ct down p^me L wms^i them does . Th J Tgm 
world banking community picked up about 30 per cent .of more flexibility, enabling them National de Paris Socifite local and 0t * e ^®2 ts " ™ ted by the foreign banks 

.exposing UK. clearing and the busdnesMurrentiy split to offer the British exporter Gfindrale. Banco Urquijo. Bank represent as itnuch as « _ mw oy^ ^ wgn* 
merchant banks to competition fairly overfly between the either facility. The banks also ^nque ^Ig^Mercan^ cent .. if not a0 per cent, of the ciM JJ lrtancei lhey opera \e as 

Americans in particular have more of tbeir market share than out of the export credit business already decided against getting strongly rejected by the U.K. on the nationalist front it is 
been anxious to «et into for the merchant banks should the British Government involved, but most are simply banks, and the merchant banks also pointed out that whereas 

some time both for" the lending It all began with Chancellor at any time reverse Its policy of investigating fully before com: in particular, who assert that a few other countries do in 
: business itself and for the Denis Healey’s mini-budget in encouraging foreign currency mitting themselves. they too offer 100 per cent theory allow foreign banks to 

• access which it can give to more December 1976 when he an- financing. The British Government is financing. They concede that undertake . cr * c J' t 

•general UK corporate financ- nounced the Government’s deci- Another change which will clearly happy at the prospect some Df the large U.S. banks business, m P ce it is i vir- 

ing sion to switch buyer credit extend the facilities which 0 f seeing foreign banks active may provide all the financing tually impossible to do more 

U.K merchant banks have financing out of sterling and foreign (and other) banks will in export credits, given that it off their own books whereas than participate in loans rne 

been concerned from the start into foreign currency. Essen- be able to offer British ex- has made this possible in the they would syndicate the loan, Government s ; JJJJ™ "J 

and there are now signs that the tially. this meant that instead porters is the imminent decision first place. There are of course but the net result is exactly the the Bnhsn nurKet is ineretore 

clearers too are becoming 0 f the dearers putting up the t0 extend foreign currency restrictions such as those same. The provision of 100 per unprecedented. 

increasingly apprehensive about necessary finance in sterling, all financing to supplier credits mentioned earlier. Added to cent financing has, therefore, sents a loss to invisioie earo- 

the threatened competition. It 0 f which — above a p re- a maturity of two years or this, ECGD is not likely to never presented a problem. i^s it «es now nave to 

| is still too early to assess the determined limit — was re- more - permit a foreign bank to under- This is just one area of dis- shared won iorei^a daubs. 

(real impact of the foreign banks financed to them by the Govern- To date the foreign banks take financing where the bor- agreement between foreign and - j 

— it is after all an unfamiliar men t, the necessary funds would have not been particularly in rower has any direct links with British banks. The foreign 1(1611011 
and traditionally closed business raised by banks on the Euro- evidence. They have been, the bank involved so that it can banking community maintains 

to get into. market largely content to participate in be presumed that Moscow that it is not aiming to take As far as the exporter is con- 

The foreign banks themselves jr or a Wl Kn e there was a good l° ans syndicated by UK banks. Narodny, for instance, would business away from UK banks cerned, the outlook must be 
do not expect to become a dea t 0 * debate a<? tD whether Of the $lAbn foreign currency not be ®ble to finance British merely to expand the business good, if bewildering in the short 

1 foreign banks should merely business concluded so. far by the exports to the Soviet Union. and there are several UK banks term. Good because the sources 

iDarticiDate in the lean svndi- Export Credits Guarantee The Government’s decision to which agree that there is plenty of funds available to him have 

I - Department (ECGD) only five oDen un the market to foreign of room for them. But while been considerably widened, 

As far as the exporter is con- 

Books contain 
many worthwhile f< 


can tell you ■mdf§|l 
& German marked: 

□articiDate in the loan svndi- ***i ,uw v^reuius uuarantee xae uovenunem s aecision to w men agree uuu mere is pie my u* ‘““wi w 

cates— there was nhviouslv a De P ar tment (ECGD) only five open up the market to foreign of room for them. But while been considerably widened, 

limit on the amount of dollar of 48 loans Evolved were banks was presumably moti- the market will presumably bewildering because he will ua- 

flnancim* which thm TTK clearer* led by fore isn banks — two by vated by the need to ensure grow, as hopefully UJK. exports doubtedly be inundated by 

i>nuid nut nn nr urhprhor th*»v Citicorp, two by Manufacturers adequate supply of funds for expand, the size of the cake is promotional material and other 

Piw K. L tl Hanover and one by Bank of the exporter. As far as the nevertheless limited. marketing ploys as the banks 

arrange the flnanS — nre America. But Manufacturers foreign banks themselves are Foreign banks claim that the fi* ht out The Poetical spin- 

til Hanover, for instance, accounted concerned they see UK export merchant banks have more to off could be cheaper financing. 

1* "fi, , „ t i™ „ wT f °r over 8 per cent of totaJ credits as •• good solid business” f ear from UK clearers who in As part of the new deal agreed 

mercnom oanxers. funds provided and Bank of with a “good risk element” their view have already taken between the government and 

ta p* _» America for some 3 per cent Against this the documentation a sizeable chunk of business tb® banks the fee structure is 

LI6IU16a The field continues to be an d procedures are more com- from them over the last year no longer rigid. In the past the 

Initially the field wid« dominated by Lloyds Bank Inter- p lex than in normal Euromarket or two. The clearers themselves clearers charged a 1 per cent 
nnin ifT-nnWri R,V t i n national which led some 25 per business with more frequent have hitherto presented a calm commission but this is now a 

auhjmn of lartvear SErinuS mt of ^ Ioans signed and drawdown. All of this involves fron t to the threatened foreign for negotiation between 

dSlof from accounted for about the same “ore Ume and effort, much of invasion but are apparently ^ banks and their customers. 

SlTBSTff proportion, of funds provided, which may be wasted if the con- becoming more nervous as they G " en increased competition 
i nT comL unit^Sie G Next m lifl c ^ lead managers tractor does not in the end wm hegin to reaiise that in the tor the business the exporters 
define^S^blStacouldlSd were Barclays Bank Inter- thecontracL In the export ]onger term ^ may have more should be able to shop around 



-h : : : • 

As a major German hank, with over 
240 branches. BIG has the expertise and 
offers the finest service in all aspects of 
international trade and finance. 

With our offices and participations in London. 
Luxembourg. Now York. Amsterdam, Basle, 
Tel Aviv. Vienna, and Sao Paulo. BfG is at your 
service for loans, deposits, foreign exchange, 
and money market transactions - the whole 
range of international banking. 

Count on EIG. 

••V i •; > 

Head-Office : 

BfG Bank fijr Gemeinwirtschaft 
Theaterplatz 2 

D-6000 Frankfurt/M-1, TeL (0611) 2581 
London Brandi: 

83, Cannon Street, London EC4N 8HE 
Telephone (01) 248-6731, Telex 887628 

&G Luxemburg SA 

14, rue des Bains, Luxemburg 

New York Branch: 

400 Park Avenue 
New York. NX 10022 

Plff* Bank fiir 
Erlw Gemeinwirtschaft 

m mm 

banque franqaise 
commerce exterieur 

Head Office : 

Sid — 75009 PARIS 


E ranchos in che Paris suburbs 




Provincial Branches 




the financing: Itstioulated that nati0IlaJ “d “organ Grenfell, “edit business the bank is Ued t0 Iose u foreigQ banks do for cheaper financing. 

only authorised banks which are “ cl1 with 10 ^ 06111 ,r to r bo , th t 5 e oon J ractor JJP" indeed make inroads into their The long-term results of open- 

rSsterod u UK eorooanta ** market ^ former pberl and the borrower rather general -corporate business. ing up Britain’s export credit 
2 S tte ^mdicatesf Most accountog f or som e 10 per cent than the borrower alone. ^ the businew are more difficult to 

UK branches of the major fui i ds “ d M ° r8an Gren_ ^ . , foreign banks are many and predict The UK banks must 

foreign banks are authorised £eli about 9 per cenL LODltECt varied but mainly prompted by surely lose some of their market 

banks but few have set up a But 11115 “ only t0 be ex ‘ the fear that the U.S. banks share but how much will depend 

merchant banking subsidiary. Pected given that the foreign Even so it is business which in particular may squeeze out on how they react to the new 
It also ruled that these banks have still to build up the the foreign banks are anxious to the domestic banks. It Is felt challenge. The government will 
registered banks could not expertise and recruit get into. On one hand it repre- that they will be able to use secure a wider source of funds 

extend participation in the experienced staff. They also sents a new lending opportunity their financial muscle to per- but lose invisible earnings. The 
syndicate to other banks within have to sell themselves to the for them and on the other suade a borrower who may exporter should benefit from the 
the same group unless they too British exporters. This they are brings them in closer contact already be heavily committed greater choice of banks and 
fulfilled the same registration already doing fairly aggressively with the UK companies which to a particular bank to use that more competitive financing but 
conditions. The stated aim was hut it takes time for this to pay they hope will lead them to bank for financing contracts in doing so may lose the 
to put UK and foreign banks on °ff> even longer for deals which more extensive corporate awarded to a UK exporter. It advantages of working closely 
an equal footing. Foreign banks P°t Bntiai customers axe cur- financing. In this context they is also argued that whereas the with UK banks in negotiating 
participating in export credits negotiating to become claim they can offer a wide UK exporter and UK bank export contracts — a relationship 

would now be subject to the 6110 contracts which require range of fatalities and expertise often go wit to negotiate the which many admit has often 
same Bank of England regula- financing. to the UK company. In the ex- overseas deal together there been crucial in winning an over- 

tions as domestic banks. While the U.S. banks have port credits field itself they will not be the same national seas order. Only time will tell 

While foreign banks generally made the biggest showing so far reckon that the main edge which interest if the bank is a foreign whether the foreign banks are 
accept the overall requirements in foreign currency financing a they have over the UK banks is one. Added to this, sister or interested in fostering the same 
they are unhappy with the wider selection of banks are that they are more prepared to parent companies of the foreign close understanding, 
stipulation which prohibits them showing interest in sterling take on 100 per cent of the bank concerned may be advis- tr l 

from syndicating “ in house.” financing. The American banks financing involved. Although ing competitors, so. it is argued, IViai^arei MUgfieS 

This is a regulation which theyi 

consider irrelevant and hope to * 

see dropped in future. Some 
British banks, on the other 

hand, fear that if it were they vHa v % 

would find themselves excluded 

from syndicates led by foreign 18EKK& 

banks. To an extent spine claim mMA 

there have already been S JBBMHn 

instances where syndicates led jHaUlM flyaBHML 

by U.S. banks have been com- • |MM JBK figg wMH 

posed exclusively nf American 

banks. ^ k 

. When they were announced. 

these, new government regula- bWK ^ 51 flag* 

tions were generally interpreted I mm M B i MBS «B8BhS& 

as a step backwards for the KNMn \ M Jjfir toMBN 

foreign banks. But in fact It BHHHH iHMHN 

was only the beginning for by JBnH am «B0Hm 

the end of the year sterling InRMHi hNBB W e 

export credit financing bad also MrfBBSBm larffflffrSifffhi iiwiinrnlPWilKfl 

been opened to them. 

As part oF the general review 


banks registered as companies _ 

CT ThS would be able to both / ( A L J I / / \ . ft 1 l * ft I ft 

provide the finance, and thus be L Z3 Jf . ^ I / L & C J | / L fc | ^ 11 

eligible for imerest rate support J V I L ^ 1/ ^ A | 1 

and refinancing, and lead the J 

At the same time- it was 

agreed that aii participating Contact European Arab Bank for: 

banks would in future take the ~ 

m'ofJr o“ n rS bo 0 o f fe he fi ”“ dne • 4u Te A rm ^ nd t! ;5 de financing, trade promotion, investments and introductions 

(if * 





Rep reson rac»vc Offices 


Commercial D<?lce*r« 



This meant that the preserve 
of the clearers as sole providers 
of sterling funds was now open 
for the first lime to other UK 
banks such as the Co-op Bank 
and the merchant hanks but also 
of course, those foreign banks 
which fulfilled the registration 
requirements. The amount of 
sterling available from foreign 
banks will obviously be limited 
by the size of their sterling 
deposit base though it is likely 
that they will raise sterling in 
the market Most foreign banks 
are still pondering the relevant 
documentation and procedures 
— all of which is relatively un- 
familiar to them. 

So far only one sterling loan 
has been funded by a non-dearer 
since the scheme was extended 
and that was by a UK merchant 
bank. A £2m. general purpose 
line of credit was signed be* 

Contact European Arab Bank for: 

Term and trade financing, trade promotion, investments and introductions 
in the Arab world. 

All banking services, including deposits, loans, foreign exchanqeand 
documentary credits. 

International money management and investment management services 

Investment banking and corporate financial services in international 
capital markets. 


Abu Dhabi Fund forArab Economic 

■ Banque Nafionale d'AIgdrie 
National Bank of Egypt 
National Bank oFKuwalt 
Banque Ubanaise pour le Commerce 
Banque Misr-Liban 
Credit Libanals 

Socieie Generate Libano-E uropderme 
. deBanque . 

National Commercial Bank, Tripoli 

Banque Marocai ne du Commerce 

Sultanate of Oman 

The National Commercial Bankjeddah 

Banque Centrale da Syria 
Arab 1 ntemational Bank, Cairo 
Frab Holding, Luxembourg 

Creditanstait-Bankverem, Vienna 
Soctete Generals deBanqueSA, 

OeutscheBankAG. . 

Midland &1 ntemational BanksLimited 
Midland Bank Limited 
_ Banca Commerciale I taliana 
Industrial Bank of Japan 
Amsterdam-flotterdam BankN.V. 
Credit Suisse 

juT'.p general Purpose Brussels: Avenue des Arts 19H, Bte.2, B-1040 Bruxelles -Telephone 219 4230 -TpIpv 

J 1 ' " 1 r was , s’F ,ed , .‘T Frankfurt: MunchenerStrasse1.D-6CimFranWurtyM-Telephone232707-Tele?di^^ 13/23884/25762 

Aorii 3 tn finam™ rtr n f t fit Bshreun. Kanoo Centre, Al Khalifa Hoad, Manama, Bahrain — Tpipnhnno rvtRnn—Trti— - . 

capital goods aod^rvices to ' ^15 ,c ai> 0 -TeSS^4S^KSS/mw?¥| 

EgJ’pt. Tokyo Representative Office: Room 427 . Fuji Building, 3-2-3 ManjnouchiChivortaSw 5 ? 5 , 79 ~ Te,ex 

it may well be that the Telephone (03) 21 4-6058 -Telex 2226287 ^doucni,cniyoda-Ku,Tokyo 

foreign banks will not be is 

active in sterling finance as they •* i r- , n " ' 

are expected to be in foreign Capital ^ °itn e Group: F. Lux 2 biiii°n (approximately US $65 million) 


Financier Times Mondav itfev 22 1978 




Looking for modest recovery 

THE FRENCH banking com- 
m, mMy whu-ii, only three 
months ago. was still shivering 
a * inv prospect of a left-wing 
V, 'j f, u V : ' 1 1 ,l ' S^neral election 
anri Inc romplefe nationalisation 
oi the financial sector, is now 
breathing more easily. The vic- 
tory of the centre-right coalition 
has not only removed the threat 
nf nn extension of slate control 
»\er the one-third of the bank- 
ing seel or si ill in private hands, 
hut has produced a much more 
optimistic business climate. The 
international economic situation 
permitting, industrial produc- 
tion and investments should 
pick up moderately during 1978 
ami the banks can dearly cx- 
peci lo benefit from the general, 
if modest, recovery of -the 

H hankers are not shouting 
their joy from the rooftops of 
their palatial establishments, 
this is not due entirely to the 
traditional reticence of their 
profession. Having slain the 
dragon of nationalisation, they 
still find the road blocked by 
the monster of credit controls 
which, what is more, have been 
imposed upon them for the past 
six years by a government 
firmly wed to a free market 

To add insult to injury, as far 
as ihe bankers are concerned. 
M. Raymond Barre. the Prime 
Mmisier. has agreed to free 
industrial prices progressively 
while Mill keeping a tight rein 
on the services sector. In the 

monetary and financial field this 
means in practice that the 
growth of the money supply will 
be restricted to 12 per cent in 
1978 and that the ceilings on the 
expansion of bank credits will 
remain in force for the foresee- 
able future. 

There are. of course, very 
good reasons behind M. Barre’s 
policies. Like any other 
manager of a national economy, 
he is walking • a tight-rope. 
Having decided to -provide a 
little more oxygen for industry, 
which has been suffering from 
reduced profit margins and 
depleted treasuries, the Prime 
Minister must be careful that 
what he hopes will be only a 
temporary new twist to the 
inflationary spiral will not get 
out of hand. 


The Government’s new prices 
policy is expected even by its 
author to put 1 to 2 percentage 
points on the rate of inflation 
in the current year, thus jack- 
ing it up to somewhere between 
ID and 11 per cent Only a 
continuation -of a tight monetary 
and credit policy, coupled with 
wage restraint, will prevent it 
from soaring even higher. 

There arc those who claim 
there is a contradiction between 
the Government’s desire to 
stimulate industrial invest- 
ments. which have been stagnat- 
ing during the past two years. 

and restricting the banks' 
capacity to lend. But this 
argument is rejected by the 
Government w’hich maintains 
that its chief purpose in freeing 
industrial prices is to enable 
industry to operate profitably 
and to finance more investment 
out of own resources. The 
overall economic strategy of the 
Government is in any case 
relatively modest. Far from 
wishing to create the conditions 
for an economic boom, which 
would not be realistic in the 
current international context 
and would carry with it the 
danger of overheating, it is 
aiming for a growth rate of 
little more than 3 per cent in 

The banks can hardly qnarrel 
with the Government’s objec- 
tive of keeping down inflation 
and most leading bankers will 
admit that it would be folly 
suddenly to relax the control 
over the money supply. But 
they feel very strongly that the 
present system of credit norms 
is much too rigorous and 

Leading the crusade against 
credit controls, after having 
been one of the most outspoken 
critics of the Left’s nationalisa- 
tion programme, is M. Jean- 
Maxime Leveque. chairman of 
one of the country's biggest 
private banks, the Credit Com- 
mercial de France. JJ. Leveque 
does not niince his words. At 
the annual general meeting of 


Wary view of 

THE West German economy. The pressure on Bonn' per- to hopes of an upswing, has 
with niMi’ly five months of 197S sisls. however. Much of It is meantime largely faded away 
-■* perplexing must of predictable enough, such as the official economists have little 
tli«M‘ " htiM* business it is to periodic urging* of the British qiiarre | fcrivalelv with the 
follow it The spurt «»r growth Treasury nr of the Carter Ad' institute's ahaKsis even though 
lull discernible ai the end ministration in Washington that Coimt nun V^mhinrtr th» 


of l !, rr and winch was some West Germany should accept Minister^ i'f Ewn7n3T Affaire 

lk * ,n a • lon ' wy ° f was obliged to dismiss the call 

Count Otto Lambsdorff, the 

il'Ultailt MINUIU d'-kc^l 

(-iinMiJalton fur last v ear’s dis- its rnlt 

appointing 2.4 per vein, rise in economics supposedly steaming/- 

•roduc- towards calmer water (last year « Gru-S National Product — m»ar«s ™ima ■"•in o<“» remark ihn cm-v, mlt 

seeme .1 i" run nut | he catchword was "low ..p 0inlles s” until the full firs! 

imii In r he 'Mid or thi first mutiu l. quarter review could lake place 

quarter of 1- <s. ' v The real question, the Govern 

\ ci ii"i all signs are niv I JnntPrjljn men t believes, is whether policy 

co 1 1 rag mg. '1 he most recent P measures of the classic kind 

induMria] orders figures (for p rfiMire 0 n Bonn has been are appropriate in addition to 

Innuinn is iikelv in be well in roa ' GNP f0T ®Mlfibn. medium-term invest- 

ing, r " per coin this year. Ministers called ’ambitious yet ment programme agreed in 
" h lo inicrcst rales are at their feasible” when it was an- March 1977 is having a favour- 
o,.. vl .., u-vels since the mid- nouncwl ° nl - v ,n mid-January, able effect on construction 
The ir.ide surplus. for Most penetrating so far bas been activity. The. impact of the 
irighluicd lalk abuut the spring report published in DMl5bn. tax cuti which canje 
wlni -m c\ L-r-dcurcr Deutsche- lale Apri1 **>' the ,ol . ni . wol km ® imo force this year has not yet 
m-ii-k m,iv ran -e lo happen to P arf >' of the ^ouniry s five lead- been fully f e i t . Meanwhile the 
«, ^rman ‘ exports remains ,ny ^numic in>muie>. It Government has also budgeted 
rmh-.m-in Mv robust forecast an increase in real for a total of DM3I.5bn. in new 

Whai .»re ihe miihorilies in l,NP ° r nu n,ore J. hMa ,r p a jg™!?**. whilh wil1 le ad to 
m.ikc Of all thin as they move wn! - this year and called un- DMiQbn. .more public debt than 

l, . ior.-M.ill rrmcism cxprrU-d ambiguously for father culs last year. 

Ill file July Summit meeting in ‘ n Jr injecting 0n monetary side. Dr. 

Horn, .»! leading industrial be±i f J E Otmar Emm inger, president of 

,..,!,„u>? Chancellor Helmut a funher sumulus. .the j^nAestonk. has been say . 

Sch in nil’s i-iialltiDu Govern- ■•Although hopes of a mis- ing ever since last summer that 
nii-nL id Social Democrats and lained improvement in the there was little more that could 
Free Dfiimcrau has promised development of the economy be done. While a certain 
i t > foreign partners that it wifi were not very great last number of companies may be 
lake a i roll look at the case autumn,” the report stated, waiting for interest rates to 
for furl her .stimulatory ‘They are now even more fall gtm further, there can be 

m. -asurcs mice full date for the muled. The optimism With little doubting his thesis that 

fir->t quarter are in hand. But which business viewed the it is no t the cost of credit that 
the timi res are not yet available economic outlook in the wake is putting people off borrowing 
and may not be for several of the policy change last- more. Despite heavier borrow- 
wvi-ks. autumn, and which gave rise fag by the pubIic sector mA 

by private customers there is 
still a liquidity reserve in the 
economy which, the Bundes- 
bank has warned, could even 
he excessive in the event of a 
very rapid recovery in activity 
Meanwhile the Frankfurt 
central bankers' now seemingly 
permanent “experiment” with 
setting targets for the growth 
of the money supply is being 
continued, with a 6 to 8 per 
cent, range of increase for the 
chosen aggregate, the central 
bank money stock. If the 
Bundesbank has come in for 
criticism from monetarists for 
allowing somewhat more rapid 
growth than this, its answer 
would be that its prime duty 
to ensure stable growth out- 
weighs purity of doctrine, and 
that the target will not be made 
tbe occasion for any tightening 
op in present circumstances. 

If the authorities and their 
critics are united on the anlysis 
of the economy's present 
malaise, they can also agree on 
the two most fundamental un- 
certainties that still weigh on 
It The first of these is the 
sea change that has taken place 
in the area of labour relations 
and wages during ihe past year 
or so. The most immediate 
effeet of ibis is in the high 
level uf wage increases — by 
West German standards — won 
in the hard-fought and expen- 
s,ve . engineering and metal- 
workers* strike this spring in 



Capital Funds and reserves 
Lie. 187.222.482-596 

Head Office in Naples 

Representative Office of the General 
Management in Rome 

500 Branches in Italy 

Branches abroad : Buen « Aires ■ n C w York 

Representative Offices abroad : 

Brussels ■ Frankfurt-am-Main ■ London M New York 
Pjris ® Tokyo ( through A.l.C.I.-Hoiding S.A.) ■ Zurich 

Representative for Bulgaria : vitocha-sor* 

Banking Associated Companies abroad : 

A .I.C.I — Holding S.A — Luxembourg 

Italian International Bank Limited. London 

Italian International Bank i Channel (viands) Ltd.. Guernsey 

Luxembourg Italian Bank Luxembourg 

Euiainoriu International Bank Ltd.. Nassau 

Correspondents Throughout the world 

his bank last month, he 
described the controls as “a 
barbarous practice” and said 
that France alone among the 
biggest Western countries had 
permanent recourse to such a 

If it were to continue much 
longer — it has already been 
applied since 1972— it would 
have the effect of permanently 
cystallising the respective posi- 
tions of tbe banks and of 
sapping their competitive spirit, 
he said. A much more flexible 
and less uniform system was 
required, based possibly on the 
relationship between banks' 
capital and the credits they 

The critics of the Govern- 
ment's credit policies no doubt 
have a point, but an objective 
analysis of the situation shows 
that they have tended to over- 
state their case. While, in 1977, 
a credit growth ceiling of 5 per 
cent was imposed on the eight 
largest banks whose outstanding 
loans exceeded Fra 6J>bn (about 
£750m) at the end of June 1976. 
important categories of loans 
were exempted from this provi- 
sion. These included short and 
medium-term export credits and 
loans to finance energy-saving 
investments and represented as 
much as 20 per cent of total 
domestic lending. 

Consequently. the loans 
actually distributed by the banks 
last year grew by nearly 14 per 
cent, compared with 15.7 per 
cent in 1976. And in the second 
half of last year, the demand 
for credit fell by so much that 
it did not even attain the maxi- 
mum monthly limits set by the 
authorities. The banks were 
therefore enabled to build up 
substantial credit reserves 
which they could carry over to 
1978 and which were not sub- 
sequently subject to the growth 

A look at the banks’ results 
for 1977 shows that by no means 
all of them appear to have 
suffered too much from the con- 
straints imposed upon them by 
the Government Mr. Leveque’s 
own bank, the Credit Commer- 
cial, last month announced an 
increase in net profits in 1977 

to Frs 77m from Frs 6Sm. the 
previous year and was able to 
raise its net dividend from Frs 
7.40 to Frs B.00 following a B5 
per cent increase in the pay-out 
during the three previous years. 

It can hardly be said, there- 
fore. that the banks are in a 
desperate position and there are 
no indications that the Govern- 
ment intends to modify funda- 
mentally its credit control 
policy in the immediate future. 
A more sympathetic hearing, 
authorities to other complaints 
which have been voiced with 
increasing insistence lately. 

Though the conventional wis- 
dom in France is that the mixed 
system of nationalised and pri- 
vate banks has worked reason- 
ably well, -there are areas in 
which it is manifestly unfair 
to the private sector. Long 
ago rescued ■ to the fact that 
the nationalised deposit banks, 
brought under state control just 
after the Second World War, 
are there to stay, the private 
bankers have recently turned 
their guns on the nationalised 
para-banJdng instutions. which 
provide a more vulnerable 


A particular source of resent- 
ment is the privileged posi- 
tion of the Credit Agricole. 
Specialising in soft loans to 
farmers and now one of the 
biggest “banks” in the world, 
the Credit AgricoJe is heavily 
subsidised by the Government 
and. unlike the three nationa- 
lised deposit banks (Banque 
Nationaie de Paris. Credit 
Lyonnais and Sociele Generate >, 
is exempted from company 
taxes. “Third in the world 
and first on earth.” according 
to its latest advertising cam- 
paign, the Credit Agricole can 
hardly be said to have achieved 
this eminent position entirely 
by the sweat of its own brow. 
What is more, it has lately 
spread its tentacles lo much 
less specialised areas by open- 
ing branches in the heart of 
Paris. I*yons and Marseilles, 
thus competing directly with 
tiie traditional deposit banks. 
As one French banker put it 
ironically: “I can’t see many 

peasants opening an account on 

the Place de L'Opera.” 

The word in banking circles 
is that the new French Govern- 
ment is beginning to take note 
of the criticisms and feels that 
something must be done to put 
the para-banking institutions 
such as the Credit Agricole and 
Credit Mutual on a more com- 
petitive footing. 

Meanwhile, the restrictions 
imposed on the banks at home 
means that they have looked 
increasingly at foreign markets 
for ao expansion of their activi- 
ties. Banking income from 
abroad has. in many cases. 

increased by 50 io 100 per cent 
faster than domestic revenue 
and more than 30 per cent of 
most of the larger banks' profits 
are currently generated by 
their foreign operations. 

After the great explosion of 
new branches in France follow- 
ing the Debre banking reforms 
of 1966-67. which abolished the 
legal distinction between 
deposit and merchant banks, 
the French banks arc now' 
thoroughly iniernaiionally 

orientated. The invasion of 
North America, with the 
creation of Socieic General?'* 
European American Bank and 

Trust Company, BNP’s French 
American banking Corporation 
and the Becker Warburg Pari- 
bas Group, has been paralleled 
hy the heavy involvement of 
FTenuh banks in the Middle 
East, the Far East and Latin 

Whai ever bankers may say 
in public about the iniquities 
of the Government's credit 
policies, there can be little 
doubt lhat they have helped 
to w idea the French banks' 

Robert Mauthner 

Pans Correspondent 


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Financial Times Honday May 22 1278 


Looming credit curbs 

Sparkassen and Landesbanken 
in the Federal Republic of Germany 

approximately 53% of total savings deposits 
Germany. DM 39 billion are held in the form 

The Savings Banks Organization in the Federal 
Republic of Germany embraces 622 Sparkassen, 
12 Landesbanken and 13 Bausparkassen. Their 
combined balance sheet total reached DM 687.7 
billion at year-end 1977. This is the approximate 
equivalent of 40% of the total balance sheet of 
all credit institutions in the Federal Republic of 
Germany. The Savings Banks Organization is 
thus the largest grouping of credit institutions 
in West Germany. The importance of this 
organisation within the West German economic 
structure for the individual citizen can be illus- 
trated by the following figures: in Germany the 
Savings Banks Organization has 62 million 
savings accounts, 1 million more than the total 
population of the Federal Republic and account 
for a total of DM 232 billion in deposits, which 

of savings certificates which represent 72% of 
atl savings issued by German credit institutes. 
Total turnover of the “ Giro ” network exceeded 
DM 6.000 billion during 1977 which is five times 
the turnover of the postal chequing service, and 
the construction loans of the Savings Banks 
Organization financed more than half of all new 
dwellings in the last year. Around 200,000 staff 
members are employed by the Savings Banks 
Organization and work in more than 16,950 
offices located throughout the country ranging 
from big cities to small rural districts. They can 
be found wherever money is invested, credits 
are made available or money transfers are 

The institutions of the Savings Banks Organiza- 
tion are in public ownership, which in turn fully 
guarantees the very existence of these financial 
institutions. These guarantees are provided for 
Savings Banks by local authorities and as far as 
the Landesbanken are concerned by the respec- 
tive state authorities and Sparkassen within this 
region. The business of these Sparkassen, 
Landesbanken and Public Building Societies is 
conducted on the same principle as the entire 
free market economy in Germany. A prime 
objective of the Savings Banks Organization is to 
provide competitive service to all other credit 
institutions, i.e. the private commercial banks 
and co-operative banks which encompass all 
sectors of finance. This is of benefit to private 
individuals, enterprises and the public sector 
which have at their service — anywhere in 
Germany — banking facilities at competitive 

The specific character of the Sparkassen and 
Landesbanken is to be found in their legal 
framework established by the German states, 
whereby the banks must fulfil specific tasks. 

These laws specify that Sparkassen have to 
concentrate on certain sectors of the economy 
which are of importance to the respective city 
or region. This assures that the necessary 
services— credits, investments and money 
transfers — are available. Sparkassen cannot 
seek more lucrative business in other parts of 
the country, hence they serve as a counter- 
weight to possible market concentrations and 
thus guarantee even and broadly-based banking 
facilities in all areas and regions of the country. 
This was a primary reason for the economic 
up-swing in the Federal Republic of Germany 
following World War n. The main activities 
of the Savings Banks Organization are, for 
example, home financing, the financing of muni- 
cipal investments, the trades and up-to-date 
credit facilities for private households. These 
services contributed substantially to a constant 
development of the German infrastructure 
which includes home building, roads, schools, 
hospitals, as well as business and retail stores. 

At the same time, the credit Institutes of the 
Savings Banks Organization have established a 
worldwide network with major business centres. 
Clients of the Sparkassen in the Federal 
Republic have business contacts all over the 
globe and in turn businessmen in all parts of the 
world seek German partners. The German 
Savings Banks network makes it possible for 
these contacts to be established with efficiency 
and speed anywhere in the Federal Republic. In 
this context, the Sparkassen work closely 
together with the Landesbanken. The Landes- 
banken are, in fact, the Central Banks for the 
Sparkassen and act as clearing houses for cash- 
less payments by Sparkassen on a national level. 
Above all, they maintain dose international 
links through a great number of their own 
branches and offices abroad as well as an exten- 
sive network of correspondent banks around 
the globe. 

Finally, Public Building Sodeties (Bausparkas- 
sen) are specialised credit institutions that 
finance housing in the Federal Republic. Client 
members of these home loan associations 
become contractual savers who generate their 
own capital and who together with a loan 
granted under special conditions then have the 
necessary funds for home building after com- 
pletion of their contract. 



4-18, Slmrockstrasse 





a broad range of specialised financial services 

— Medium- and long-term financing for industrial Investment: 

‘ ,«l market rates 

* at low-interest rates (small and medium enterprises, Southern Italy, depressed areas of Central 
Northern Italy, etc.) 

— Equity participations 

— Aid for industrial research and development 
— Shipping finance 

— Financial assistance for the promotion of Italian exports and activities abroad (export credit 
financing; buyer credit! 

— Loans in foreign currencies 

— Technical and financial consulting and assistance services, either directly or through affiliated 
companies; specialised short- and medium-term financing; leasing; underwriting; economic surveys 
and researches: technical and financial consulting; introduction of Italian enterprises on foreign 
financial markets; mutual investment funds; auditing; trusteeships 

IMl raises funds on the Italian and foreign capital markets principally by floating bonds which are listed on 
the stock exchange and very popular among small and large investors. 

Subscribed capital and reserves: 70S billion Lire 

Loans outstanding including special operations as of December 31. 1977: 10.SS2 billion Lire = S12,4S6in. 
Placed or outstanding bonds as of December 31. 1977: 8,522 billion Lire = S59.Sl3m. 

Other medium-term borrowings as of December 31, 1977: 1,220 billion Lire = SI, 400m. 

Head Office: 25 Tiale defTArte— 00144 Rome, Italy 
Representative Office at: a Cbcapside, LONDON EC2Y GAA 
Telephone: 24S 1091/2/3/4. Telex: 887671 Un London 
other Representative Offices in Washington, Zurich. Brussels, Mexico City. 

Regional Offices in Milan. Turin, Genoa. Padua, Venice, Bologna, Florence, Rome, Bari. Naples, Catania. 
Monetary values in U-S. dollars were calculated at the exchange rate of Lit S71.55 to the U.S. dollar 

settlement exceptional is not 
so much that it pushes against 
the limits of what the Govern- 
ment believes the economy can 
afford, but that it also for the 
first time directly protects 
workers from the effects of 
investment in labour-saving 

Such a danse has been sought 


customers — , . 

oniy one-and-a-half changing 

during the same period. Perhaps 
the most revealing figure of all 
is the almost fiveEold increase 
in the business (measured by 

in other industrial negotiations, balance sheet totals) of the ' West 
<» ha th a German banks' Luxembourg sub- 

while maintaining its 
role as a provider of -finance 
l?Te volume of business done the agricultural sector it is towards the range of its : activi- 
ty overseas affiliates rose ten- expanding into new areas. The ties are still unclear. The new 
fold from DM4bn. to DM47bn. 

and it could be said that the 
bitter dispute in the ' German 
printing Industry this spring 
essentially tamed on the same 

sidiaries. This element illus- 
trates more than anything else 
the strong place that German 

Rabobank logo is almost as bank, if it comes, will be tbe 
familiar now in Dutch town fourth largest in Holland, 
centres as that of its two big Competition from foreign 
commercial rivals, ABN and banks established in Holland 
AMRO. Rabobank is also does not present a threat to the 
moving abroad. It has joined domestic banks' retail opera- 
Uiuco-United Cooperative Banks tions although they do compete 
of Europe. This gives it links strongly for wholesale business. 


issue of defending jobs from the ban *s have «> me to 1x1 

inroads of machines. Such a Euro-currency markets. 

goal on the part of trade union. 

Yet there are probably few 

negotiators is understandable at Gemi*" bankers who would 
a time of unemployment run- predict that such growth can 
nin E at dose to lm. on average be sustained indefinitely. Here 

all the year round. and there si ffos of a leSS 

^ , frenzied pace are already 

■I^e umon leaders pe^ree appearing acc0 mpanied by 
that for all the political of a pjj ase 0 f consolidation 

speeches made about the need 

on the foreign side. Shortly 

befor& 1116 departure of 

has become thanks to the Herr Ludwig poullai n as head 

social security system — a per- 
manent feature of life that one 

SSSTnS b! ™wJ 1 >4-b r °tap u 0M w »rtth ft. 

of the Westdeutsche 
bank— Girozentrale a 





SSSTnA za&i I—. 

contrary — to 
protecting the 
members and 
highest wages 


question of how far the institu- 
tion ought to continue to ex- 

close ranks by 
jobs of their _ . 

°ettine the pand abr0a<L 
thev can for For commercial sector 
y though no comparable overlord 

exists, there have been hints 
that the Bundesbank might be 
interested in ways of bringing 
In the past employes would L^mbourg subsidiary banks 
have grumbled but eventually wi r hm tte orbit of its monetary 

paid up, and the Bonn Govern- S£ le £“**£* “ d 
ment with the rest of tbe world, Wboteverliie truth of thatiand 
would have been duly im- tfae central bankers in Frank- 
pressed by the relative restraint *T® realists enough to 

of German unions and by the th ®y have btUe h °P e of 

cohesion of the German social success), _ the next few years 
contract To-day that contract P°“ibly see other attempts 
is under strain, with the unions *b e powerful wings of 

boycotting its most visible ^b® German major banks, 
machinery, the so-called con- Their dom in ant role in provid- 
certed action conference, and [ n S long-term indus trial finance 
the employers .challenging l 5 longer seen by everyone 
through the courts the hard-won ^ 50 automatically benign as in 
Workers’ Participation (Miibes- the post-war era. while their 

timmung ) Act 

What has contributed to a new 
hardness on the side of 
employers has been tbe second 
major uncertainty weighing on 
the Germany economy — the 
remorseless climb of tbe 
Deutschemark against tbe dollar 
and against virtually every 
other currency. Scarcely any 
company has reported this year 
without making dear that for 
West German products on 
export markets, breaking point 
may now have been reached. It 
is no use pointing to the experi- 
ence of past revaluations and to 
the amazing resilience of Ger- 
many’s typically high-technology 
export items such as machinery 
and industrial plant The fact 
is that competitors have in many 
cases caught up in quality, and 
are able to offer prices 25 per 
cent, and more lower. 

What does all this mean for 
the German banks ? For all the 
gloom to be heard from Industry 
ever since it became clear in 
the middle of last year that 
recovery had faltered, the past 
year has not treated the banking 
business unkindly. With a few 
profit figures still to come, the 
general message from the 
bankers is that a good deal has 
changed since the days when 
industrial credit demand was 
the main determinant of their 
prosperity, although it remains 
an important factor — strength- 
ened if anything by the banks’ 
own long-term holdings in many 
of their major Industrial 

On the domestic side profit- 
ability has been aided by an 
increase In private customers’ 
borrowings to buy items like 
cars, houses and expensive 
foreign holidays. Demand from 
public bodies is likely to remain 
brisk, especially if Bonn suc- 
ceeds in persuading State and 
local authorities to follow its 
own example of calling a halt to 
the process of trimming back 
public debt 

Yet the brightest area of the 
banking picture is once again 
foreign business. The major 
commercial banks and several 
of the publicly owned Landes- 
banks derive as much as 30 per 

effective sway over the stock 
and bond markets may also be 
more openly questioned. 

Adrian Dicks 

Van Lanschot Bankiers 
in The Netherlands 
since 1737. 

Associated with 
National WestminsterBank Ltd. 

Specialists in all aspects of: 
Foreign exchange and Euro- 
deposts. Corporate Finance, 
Short and medium term 

Private placements 
and Bond dealing. \ 

Head Office: V 


The Netherlands, 
telephone (0731-153911, 
telex 50122/50171/ 
50176. Branches: 14. 

London Representative 

1 Princes Street, 

London EC2P2AH. 
Telephone tOl) 638 4724, 
telex 885361. 


F. van Lanschot Carabao N.V. 
Willemstad, Curasao, 
Telephone 12350, telex 1065. 

Affiliated Institutions: 
Atlantic International 
Bank Ltd. (London); 
Financial & Leasing 
Corporation AG.(Zug). 

E van Lanschot 

—more business 
from banks 

and businessmen, please. 


• 3,800000 current anddeposit accounts 

• 1^2OQ£OO0OO0OO lire deposits and funds administered* 

• 420 branches - £,500 employees 

° including Mediocredrio deposits and funds 

Head Office 
20121 Milan 

viu Monte di PietaS 
id. ttCl 8 S 661 
telex 31260/34451733407 

Repnsenlalivc Offices: 

London Brussels 

Cunaril House Avenue Louise 327 

SSLeadcnhuilSttcetEGS B-1050 Brusdles 
id. tOI) 2832302 id. b 4000 &> 

idex 837641 Canpto bin idexb’+toCaribrB 


Grasse Gdllusslrosse 9 
6 Frankfurt am Main 
Uo open soon) 

takes up a lot of space in the Italian banking picture* 


th later, the Dutch Central Bank, banks done against this patchy The Iarg^t bank in HoUand with mme JgjJgJ 

dr. Gljs sounded his traditional warn- economic backcloth? The big the farmers eMpmhe Babo 

ling par- mg in his annual report bnt two commercial banks have both bank, raised net profits . - rp _„, anv . Austria and Finish 

down- even tie is moderately atisaed echieved respectable if onescit- per cent ;20 per ceotl and its Germany- 

« Witt. Holland’s fight against ing levels of growth. Arngor- bal»nce_ sheet total by 20 per It„ ^o^odtog tts .srsfc « 

most spectacular per- Tbe Westiand-Utrecht Bank 
in 1977. Holland's has ambitious plans to expand 

BUSINESS CONTINUES to last ApriL One month ***«■. th<* Tmrrh r^nti-ai Rank, hanks done aaainst this Datcny The largest bank in Hotiand. with nin , T ®_ _*Sricui. 

Sourish for the Dutch banking Economics Minister Mr. 
community although the still Van Aardenne was telling 
depressed state of the country's 1 lament he had revised 

economy and the Central Bank’s wards his expectations — — ° — « . M 

decision to curb credit volume economic growth. Apparently inflation. He is forecasting a 4 dam-Rotterdam Bank fAMRO) cent (17 per cent i. 

have slowed down rates of taking a different definition of to 44 per cent rise in prices started the annual report season But it is elsewhere mat m arKe . 

growth. Holland's domestic economic growth, he foresaw this year. This is still higher with news of a 15 per cent rise was the 

banks are expanding abroad in an annual increase of 3 per than Holland’s largest Hading in profits <14 per cent in 1978). fbrmaoce ------- t it oertv development activL 

search of business while the cent in the next few years com- partner. West Germany, but Its balance sheet total was 19 three independent mortgage t. prope P etro- 

list of foreign banks in Amster- pared with his earlier hopes of down on the 64 per cent in 1977 per cent higher compared with banks, as well, as morUage ti , 0 . patentiaf°fS 

dam continues to lengthen. The 3* per cent. and well below the 10 per cent the 20 per cent rise of the year bank subsidiaries of the uni ver- jlnte it i also i l for 

exceptionally successful mort- Unemployment is expected to figure of 1975. His curbs on the before. Aleemene Bank Neder- sal banks, saw record insurance and sawing 

gage banks can look back on a rise to an average of 215.000 growth of bank lending have land (ABN) followed with a 14 ments in Pfofits and business I* and Mvin e» 

record year in 1977 while they this year from 204.000 in 1977 also been partly successful in per cent increase in both profit roiume as house pnees rocketed, account .■« J ... 

too, are casting their eyes and there are now doubts that stabilising the growth of money and balance sheet total (10 and Westland-Utrecht *Jypotheek- But the pore ti P® Jon 

abroad for new markets. government plana to create supply at around 7 per cent On 16 per cent respectively in bank, the largest of Uk thrw cl. most worries ^the ^nka. 

The general economic situa- 110.000 new jibs by 1981 will tbe wages front following the 1976). , _ „ »» “ortgageponfolionse u ; the plan to merge the PW 

tion is not rosy although there be adequate. bitter confrontation of 1977, tbe At the Nederlandsche Mtd- 46 per cent while net earnings office *™ a ** "* n J\ a " d 

are signs of success in some Dutch exports are expected to unions have settled for minimal denstandsbank (NMB) net pro- were 5« per cent higher. The postal giro sy* T at ^ e ’ 

L Th county's mate rise 3 percent in 1978 com- wage increases and the spring fits were 26 per cent higher Friesch-Groningsche managed owned P° s ? “*« £"£■ JJ ** 

economic forecasting unit the pared with a fall of 2 per cent wage round ■ has passed off (39 per cent) while the balance increases of 50 and 56 per cent new ^Je _bank^were to extend 

Central Planning office, foresaw last year. But seen in tbe light peacefully. sheet rose 22 per cent (26 per respectively 

a 2J per cent increase in gross of an expected 5 per cent rise How well have the Dutch cent). 

national product this year the “ folio "by 58 per cent. Local deposits the commercial banks 

durad annual se^of forecasts Dr. Jete Zillstra. president of UfPQ J C CDMA If V fa^pJLurlfon space* te*^ ^feTthe 

■ItUI UUIftlTimi I crowded “Randsad" and the 

- ■ sudden taste of the Dutch for a 

CONTINUED FROM PREVIOUS PAGE home of their own made mort- 

the key North Wuerttemberg/ cent of their profits from their S*S® J^ks 1116 tQ P performers 

North Baden region. foreign business. In the past . 

This has. as is often the case, five years, according to a study 
become the norm for the indus- recently published by the * re 

try nationwide— and indirectly Bundesbank, business involving ^ 

for other workers in other foreign customers has risen H °^ d . s lar ^ JfJ 0 ! 

sectors. What makes the threefold, while that with a ^ng time been regarded as a 

has giant. This is now 

while the much its operations into the fields of 
smaller Tilburgsche raised net commercial credits and to 
profits 80 per cent and its port- compete actively for customer 

would be tempted to use the 
new bank to support govern- 
ment policy and a potential con- 
flict of interest between the 
Minister's guiding role over the 
proposed bank and his respon- 
sibility for general monetary 
policy. These fears were allayed 
somewhat with the arrival 0 ! 
a new centre-right government 
in Januaiy. The new adminis- 
tration's precise intentions 
towards the “Postbank” and 





v ! Nr; 

Financial Times Monday May 22 1978 

t ■ 



United in a common purpose 

Ita* motion with' the backihj. of 

credit to the private sector until closed profits for last year, 
they see more precisely how the The banks themselves justify 
Government intends relating its their average five to six per 
good housekeeping promises cent spread on commercial 
into practice, especially with transactions by pointing to 
the employer organisations and their low-yielding iucked-in 
the trade unions demanding a assets at the dictates of the 
run For growth at ihe expense central bank via compulsory 

of the reserves. deposits, together with the 

There was a sharp r.-unlraction under-utilisation of some of 

impression that Itaiv i - iL iin lfte MCRnig of in wage demands, for more total deficit of L24.00Qbn or L3,000bn in new taxes and the next few years is hardly There was a sharp r.-unlraction under-utilisation of sump of 
e or i*.,,. : _ _ . t J* S0I| te 90 per cent of the rotes in labour mobility in industry, £15bn. and from Washington tariffs, a similar sum in actual possible without the real danger last year in the rate ul expan- these available assets because 

* 111 “ Slilitr Ol per* Parliament fnllnunna 9 mfhnr snH a _ n»t? u ..n* j . ... ..j .l i • _ m . j:b! rlnn nf inn ic alcn 

in.ineni rhaos umi f>PNn«niv pa T lianient following a rather and for a limit to how much the IMF has signalled its programme cuts and the balance of new payments difficulties, sinn of commercial banking of the recession. There is also 

recent escalation nr nAm.Voiiv un,que . and very Italian public funds, and for how long, approval. saved through a postponement After all, the sharp improve* loans, although many major growing concern that the banks' 

motivated violent* ; arran Sement which has moved should go to bailing out indus* r~. , inridenieiw until next year of a number ment on the payments account companies did cover their profitability and; indeed, their 

m Ihe kidSaS« SSi aUn H s ™°f T <? f 11)6 opposition parties, trial lame ducks. has ttme^desoie SS> unde?* of already earmarked projects, last year was the main expense funding requirements through overall capital base need to be 

W* SSSM St 222Sf The whole thing is almost un- £S5*?LS£Si ****2* *. =f a developio, eeceeeion now. jn.ernaj.ono ,, ^-owinee. The r. tac, .1-J -n. 

\!?i» ei lLj ,Ma . s l sina , ti0n of Si 3- powerful Communists (PCI), 

£f?-S=”= s~S$i s?&p*££ 

almost XS£ = 

sjstSSSS s-rjfM 

real, but then for the time 

ime ^vemmenk in its “Lener nf give the Administration an happily, showing signs of at Bank of Italy has now extended to play an important role in 

t is Intent’’ to the Fund in Anril opportunity to illustrate how worst bottoming out. and at through to July banks’ lending financing— through an exchange 

snts 1877, to limit the enlarged the projected year-end growth best already in reverse, if only ceilings which were due to of equity for existing credit 

sumo $3bn i a(Sf in order to stop toe escalating that this Letter of int 

surplus aopearViilplv governments in three decades. public sector deficit fn)nj get _ projection ^ taken more or Also at month's end— on May « traoe ana. not insignia- tnc monetary auim.mies, inter- n«m. u>nnnu.»u-ia ana umv 

(given na c J eha»L ye S at 1 £ e principal parties are-or ting totaliy out of control, ]ess oUt of ^ sky ^er pro- 31 in fact-tbe Bank of Italy cantly, to a big rise in earnings e it rales have been maintained many of the political parties, 

course ?■? ™ ° f at ,east c } atm pubhcly t0 be — and because the International tracted negotiations, and an in its annual report will have on tourist account, up last year a t a high level, alihuueh well The central bank has similar 

mem economic manage- more or less as one on tbe b.g Monetary Fund (IMF) is intervening General Election in its own say on economic and b Y some 54 per cent over 1976 0 iT the crisis rates of 1976. ideas, although with limitations, 

' a "°. major political issues facing the country, on demanding them anyway, but June. 1976. had exhausted the monetary policy, and the l ° show net receipts of S3.Bbn. Overdraft facilities for good being understandably enn- 
tian rtomn.** C "™‘ 11,6 neerf t0 conjfaat terrorism. whicb cuts and in which energies and perhaps even the Governor, Dr. Paolo Baffi, in his If skilled economic and mone- quality bnrrnwcrs are still in cerncd m ensure against any 

menr Jo ™ \ c,overT1 ‘ to create more jobs, to contain services 0 nerves of alj the negotiators. own statement may even wish tary management helped greatly the 15 to 16 per cent range, undermining of the status and 

= ‘ . ol ktuUo Andreotti. the enlarged public sector „ . . . _ to recall his earlier warning to save tbe day as it were last leaving the commercial banks credibility of the Italian bank- 

PnnnE nmg - to have the , deficit - t0 restructure industry, rv i ; , a 5* that in present circumstances in year, the monetary authorities with a comfortable spread ins system. 

rowing at an annual to reform the health services. Oil Ell ty In rides' /mat SSnS Jtaly, a growth rate of more understandably are not inclined which in recent weeks has ^ , T ^ . 

of 4 per cent plus by the to reorganise the social welfare h t ^thPrwiRirnipVit than 3 per cent, on average over to loosen their tight controls on been reflected in improved dis- Dominick J. Coylfi 

ast quarter of 1978. The infla- structure, to aid investment in The new form for the future ™ “J, • t “* wl “ ™i? ht J ** ve z — : — 

tion target is for a maximum the depressed southern regions is supposed to be about tbe S®*®!. . ® I ' —1 — 1 E — — — " -1 K.? — 11— _ 

at month's end— on May terms of trade and. not insigniti- the monetary authorities, inier- tion. Confindustria. and also by 
fact— tbe Bank of Italy cantly, to a big rise in earnings est rates have been maintained many of the political parlies. 

13 per cent. and to revitalise tbe long- quality of public expenditure, 17^1 

Superficially at least, it is no neglected agricultural sector. not the quantity as heretofore, ‘ it 

dismal performance, or even The Communists want a more and the commitment on paper Jf 

that it has not as yet been made 

msmal performance, or even The Communists want a more and the commitment on paper t „ T, “ ZL JjzZ, ^1, ahiJh £ 

promise. The official reserves efficient stock exchange to at least looks impressive. The J® 

have risen sharply, indeed spec- serve as a vehicle for channel- enlarged deficit to include the f . u 7^^.Jz4zi s ’ f 5 11 7 ' 

tacularly so. when compared ling small savings into industry, social security services and i 

with tiie position at the time of The long-ruling Christian Demo- ENEL, the State power under- harelSn Smf 

the exchange rate crisis two crats give the impression of taking, is to be cut bade to - e 50 

lb do business internationally 
PHP recommends using two banks. 

years ago. even ir the gains are going through a period of public around L20,000bn (say £12.5bn) 

somewhat notional, reflecting a repentance, almost (if not from tbe near LS0,600bn it better stm avoiding iSvment 

sizeable increase in the external quite) acknowledging their would otherwise be this year altogether remains a national 

liabilities or the banking guilt fn r many of the nation’s on the basis of unchanged oa l. r a i m05t with font 
astern. ills after more than 30 years of policies. Another L4,000bn of to cn Shine tn bnasr 

The Andreotti Government, DC government. The trade new reflationary and job- revei)Ue cjHp this vear and 

while being a minority adminis- union leadership is talking creating spending is then added ^g unspecified spending ’ cuts 

tration, won its confidence about the need for moderation back, making a projected 1978 bave yBl _ as note ^ to be 




I Ilk ntintnUilDUU CONTINUED FROM PREVIOUS PAGE yi at L40,000bn which. 

theoretically, is consistent with 

Following the wave of U.S.. third of its 1977 warnings to its .reduced to an annual rate of other main targets, but the 
British and Japanese banks in foreign branches and affiliates. 10 per cent in the first quarter apportionment between the 
recent years, the latest arrivals Including Eurocurrency busi- of this year and again to 8 per State and private sectors has 
have strengthened the French ness and foreign business car- cent in the 12 months to next yet to be defined with any 
presence. Societe Generale and ried out from Holland, the March. Although the percentage clarity, and the public sector’s 
Banque Nationale de Paris have foreign share of earnings is figure has been reduced, the failure last year to operate 
joined the long established nearer 50 per cent In April it Central Bank says it will allow within assigned, or at least self- 
Banque do Paris et des Pays opened a second office Jh Tokyo, savings deposits of two years imposed, Ijmits is not an en- 
Bas and the Banque de Suez, a month after its seventh U.S. and more to be classed as long- couraging omen. 

The third new arrival is the branch, in San Francisco, began term funds, so these no longer However, some more concrete 

Hongkong and Shanghai Bank- operations. **H under the curbs. Dr. indications are likely by the 

ing Corporation. The question which has most Zijlstra sees this as a slight end ^ tbe montb wben the 

But the past year has also exercised the minds of the Dutch easing of the curbs although detailed budget provisions are 
seen further moves abroad by banking community In the past man 7 bankers disagree. due to be presented to Parlia- 

the Dutch banks. The limits on few months is the decision by The commercial banks could ment The so-called “three- 
expansion in the crowded Dutch the Central Bank to continue its hardly be expected to welcome three-three " formula which the 
market and the increased inters credit curbs. First introduced controls at the best of times. Government has settled on in 
nationalisation of Dutch busi- in May 1977 and working retro- But they are particularly seep- order to cut back tbe public 
ness — insurance companies, actively from January- of that tical of their use in the present sector deficit is to be unfolded, 
retail groups and the big con- year, they were extended for a economic depression. the package seemingly having 

tractors have all increased their further three months it the r .. . . . I : 

overseas activities — lie behind si art of 1978 and they are how V!f ir , ars “?ft curbs on 

this trend. AMRO, which up to due to run until the end of iUltTfiJ 

now has worked largely through March 1979. Confusion sur- JJJ** ha ^ |.J , ( . ee ! , I1 t i f]!. 

Ihe European Banks Jnt» r- rounded the latest extension of ,te Li21i 

national Company - the EF.IC the curbs with the Central Bank Sl/ST® 

Consortium - is starting lo sct cbiming it had cased the con- ” f °°^ , *"* “f ” 

if.- nun hrannh nrturnrb Hill— ™ HWRire MS 

You need a capable commercial bank. 

Even when you’re doing inter- 
national still have day-to- 
day banking needs. 

Pierson, Heldring & Pierson’s 
general banking services take care of 
daily chores like money transfers, 
overdrafts, foreign exchange and 
documentary credits. While PHP advisory 
services help you with equity, debt 
financing and bank credits. 

You need an inventive merchant bank. 

To tackle more complicated 
problems, you need a bank that under- 
stands international busi ness. A flexible 
bank that can invent individual solutions 
to your particular problems. A bank that 
offers the complete range of special 
financial services. 


PHP is that bank. We give you 
professional, highly personalized atten- 
tion and expertise with regard to new 
issues, securities brokerage, block 
trading, portfolio management, institu- 
tional advisory services, trust services 
and insurance brokerage. 

PHP is two banks. 

We have the commercial banking 
services you expect and the merchant 
banking services you need. In Holland 
and throughout the world. 

If your business is international, 
let PHP show you how one bank can be 
the two banks you need. 

Pierson, Heldring & Pierson NV 

Head office: Herengracht 214, Amsterdam, 

The Netherlands. Telephone: 020 - 21 11 88. 

London representative office: Pierson, Heldring & Pierson (U.KJ Limited, 

14, St. Swithin’s Lane, London EC4N 8AD.Telephone 01-626 1466. 

Affiliated companies in Curacao, Luxemburg. United States. Switzerland. Bermuda, Indonesia. Hong Kong and Japan. 

Dubai. NMB has aLso been limits on lending financed by juflp-pp for 

sttcnqthenmq its operations in shorMenn borrowing to restrict fc2J 

M i vii q i ii rn in u iu> upt-rauuus in Miuri-urrai wuvwiiig in urauw ^ hftrmvi lone have 

Vj"*. It JIM us the f otv,h of money supply ^ hSSL 

first Middle East in Lone-term borrowing c,s be strongly. The higher 

Beirut, and it has bought a passed on directly since it does lCTe , of mortgage borrowing 
bank in Zurich which it has not lead to the creation of extra j >een n^tte affected how- 
renamed NMB Bank Schweiz, liquidity. Borrowing short and ever Central Rank has 

ABN is the bank with the lending long had led to exces- agrGe(1 t0 hanitj n g foreign network through sive liquidity creation in the community in September to 

its historical links with the past two-to-three years. discuss the impact of the curbs, 

former Dutch territories in Banks were allowed a ceiling 

South-East Asia and with South or 12V per cent on credit' Rot/JiAlnr 

America. It attributed one growth in 1977. This was l~-.fl an cS oaicueior 

Over 80% of Australia’s 

hanlring ter mln ak 

are supplied by Olivetti. 
Banks know whom to trust. 

of strength 

The problem 

To assist Australia's financial institutions in serving the country's fast- 
expanding economy with flexible and reliable terminal systems for on- 
line handling of all banking transactions. 

The customers 

The biggest savings banks and building societies in Australia, including 
the Commonwealth Banking Corporation, State Bank of Victoria. Savings 
Bank of South Australia, State Wide Building Society, Hindmarsh Build- 
ing Society, United Permanent, Joint Services Network, and others. 

The solution 

The new Olivetti TC800 intelligent terminal system. In a country’ where 
80% of the banking terminals already in use were supplied by Olivetti, 
today’s market eagerly welcomes the TC800, reaffirming the success of 
earlier Olivetti systems. An outstanding example: at the Commonwealth 
Banking Corporation, which uses one-third of the systems installed in 
credit institutions throughout Australia, all the terminals were supplied 
by Olivetti. 

For two thousand years ancient Rome has symbolised strength 

and efficiency. 

Today Banca Nazionale del Lavoro continues the proud Roman 
traditions. One of Europe's top ten bank^ we combine an 
extensive network of offices in Italy and worldwide 
representation with a flexible and creative approach to our 
clients' needs. For anyone involved in financial transactions with 
Italy and the L.fc.C ? \ve stand ready and able to help. 

The choice 

Olivetti TC800 terminals are being chosen in preference to those of other 
major manufacturers because they are intelligent enough to function 
outstandingly on their own, yet can be adapted easily to join any network. 
The high reliability of Olivetti after-sales service is another important 
factor in their selection. 

Companies everywhere are choosing Olivetti systems 
Here are the latest world-wide totals: 330,000 accounting machines; 
140,000 data processing systems and personal mini-computers; 65,000 
terminals and data collection units; 150,000 teleprinters and telecom- 
munications units. 

Banca Nazionale del Lavoro 


London Branch CornlwSI. London. EC3V ^.Telephone: 01-fcU -J2Z! 

Head Office: Via Vittorio Venelo, 119, Rome 



' Head Offices: Amsterdam. 548 Herengracht, International Division, 

• f.o. ,1’’.. ' phone 020-52791 1 1 , telex 11424, cable Meesbank. 

;• • />; Rotterdam, 93 Coolsingei, phone 010-63291 1, telex 21231, 'cable Meesbank. 

\ Western Germany branch: Hamburg. Pelzerstrasse 2 (comer- Rathausstrasse). 
f;.. , phone 040-33 1 72 L telex 02 1 6 1733, cable Vascogama. 

, 3 - \ ‘ Associated banks and financial institutions in: London and Jakarta. 

I v ■■ ■ ; ■ " • . '■ ■■ , • '■ ■■■ , . ■ 

ii v'C 7 : 

... . :.-v« v- ' • . ' . ■> •- 


Rembrandt country is Rabobank country. 


> cmhran Jc fnim J l»i< inspiration in Holland, 

\ tit created art null a uurl.KiiJc appeal. 

The Ccntrale Rabobank also finds its inspiration 
in 1 follaruL. vet incrc.i>«ngiy provider services in the 
u odd at large. 

With a strong back croon J.The Centralc Rabobank 
heads a cooperative banking organisation with over 
31 v \i offices and a combined balance sheet total exceeding 
M billion Dutch guilders (in excess of I'S S 1 tj billion) 
in 1977. This makes the Rabobank not ju^t one of the 
largest banks in 1 In I land and one of the 30 largest bank* 
in ihc world, bur ai>o a bank is itlt roots in almost all 
sectors ol Dutch economic life. 


he Centralc Rabobank is now expanding 
worldwide with a full range of banking 
senves-To accelerate this expansion, we recently 
cc-founded thc„UNlCO BANKING GROUP", linking 
us with nve major European cooperative banks.This, 
together with the support of London and Continental 
Bankers LtJ.has strengthened our operations by giving 
international clients unparalleled on-the-spot service. 

In addition, we are active in the Euro-currency and 
Euro-bond markets. Our international transactions in 
foreign currencies. Euro-crcdit loons and participation in 
new issues, are show ing a remarkable growth. 

Dutch Masters in Banking, 

Eor your dealings in options; ask for Mr.H Kuyl orMr-D-Hersch Amsterdam, telephone; (020) 2415 52 . 


Financial Times Monday May 22-1978 


Flourishing year 
despite Chiasso 

THIS TIME last year Swiss bank- the five-year agreement between every Swiss bank in portfolio was in the headlines this month 
ing was rocking on its heeJs as National Bank and the Bankers’ management has been hit by the when it was disclose a mat In* 
more and more ■ unpleasant de- Association to improve the non-resident investment ban re- deficit of Lecierc ami uo.. or 
tails became known of the identification of clients and Introduced in late February to Geneva, wlwse uimculties 
£600m scandal Involving the hinder the "aiding and abetting” counteract an excessively high became known last ^ year, 
Chiasso branch of Credit Suisse, of fugitive fund movements, to- Swiss franc exchange rale, totalled SwFr 399m i.lients 

National Bank president Dr. gether with the Bankers' Asso- however, and all are now feel- of the bank are not expected 

Fritz Leutwiler was voicing a ciation own recommendations mg relieved that after Whitsun to receive more than 9 per cent 
widely held fear when he said on the running of fiduciary busi- this was toned down at least to of what they are owed, 
shortly after the story broke ness and the granting of bank the extent that foreigners can All in all. though. Swiss bank- 
that an affair of this kind guarantees. The Association has buy new shares with proceeds ing is healthy and looks like 

“would inevitably affect the also laid down guidelines for from the sale of other Swiss showing a further overall 

Swiss banks’ reputation for internal bank control systems shares. growth this year. The larger 

sou a dess and integrity.” There and — like the Government's Another general cause fur banks are certainly continuing 
were few people last spring Banking Commission — consider- complaint is the fall in foreign- to expand in the banking field! 
who would have been sanguine ing new rules for the protection exchange and precious metal Credit Suisse, for example, 
enough to foresee that business of depositors. dealing income, largely because recentlv took over the former 

would continue virtually as Rather less to the banks’ 0 f strict Government currency white Weld stake in the inter- 
normal for all concerned and liking is a referendum proposal regulations. At the same time, national investment banking 
the. standing of the country’s presented to the Annual Con- non-resident money in Swiss operation Credit Suisse-White 
banking network come out of gress of the Social Democratic banks was hit earlier this year We id after havin'* late last year 
tbe.drama with hardly a dent. Party in Basle last week for by National Bank measures in- increased ils shareholding in 
As was increasingly obvious i P cr !P as ^ € ^ pu ^* c surveillance of eluding an extension of the u, e New York-based investment 
as the year wore on. the ™ S Wem. The motion negative interest liability on banking firm Sogen-Swiss; in 

shocked surprise of the outside aims a constitutional amend- new and some existing foreign Switzerland it acquired control 
world Jed to very little with- meDt ■“<* ^ would extend the deposits in Swiss francs. over Bank Neumunster in 

drawal of custom from Switzer- mS; f» i_i Zurich. Swiss Bank Corporation 

land Host bmks-meluding WUh a v ^ Problems I°r Us part has just bought a 

Crddit Suisse — returned record *>oaies— particularly witn a view stake jn thfi Gen , >va or : vale 

profits for 1977 and the com- t0 countering tax avoidance-- Banking in Switzerland is ter- hankine house Ferrier Lullin 

bined assets of the 71 banks towards the authorities and^ the tainly becoming increasingly and Jn ' th ialter part of 1977 
reporting their figures to the general limit banking difficult in the light of monetary had tak .. n over the small hum 

National Bank reached a new interests in nun-hanking . font- restrictions — quite apart from snec j a ii st iirana Bank and 
peak of of SwFrs 284.4bn by ? aiue . s and lay; down obi. gaiory such current problems as the ^ne d control of the Be-lin-er 
the vear’s end. To quote Rainer insuring of deposits. The Social difficulty of placing a steady flow , ae^m^er 

E. Gut, Board spokesman of Democrats’ proposal has not oE domestic money at worth- f p ‘ 

Credit Suisse: "It was the m uch chance of finding the while interest rates. Problems There is a general interest -in 
Chiasso case itself which also necessary approval in a future are especially marked, as was expanding operations abroad- 
proved the strengths of Swiss poll— but it is much dearer pointed out at length by ?” p,te L occasional divestments 
banking" and more realistic than the speakers at this month’s Asso- 1,ke thal of Union Bank of 

All this does not mean that Party’s original *ague ideas in ciation or International Bond Switzerland in the New York 
the scandal has been without th * . immediate wake of Dealers congress in Zurich, for J° in t fentore UBS-DB— and the 
consequences. Apart from the ** Chiasso.” the private banks and the aiterest in opening up new 

herculean task of sweeping up Meanwhile, this year got off foreign-owned banks. In May domestic branches ‘has reached 
the pieces in which Credit to a fairly good start for the alone. , two well-known private the level where the four biggest 
Suisse itself is engaged, the banks. First quarter business banks tone m Geneva and one £? mmerc ‘ a i banks (the Big 
question of more efficacious of the Big Three developed to in Zurich) were taken over by Three plus Swiss Volkshank) 
bank control has been the satisfaction of Swiss Bank' larger institutes, while the have reportedly started talks on 
thoroughly ventilated and has Corporation and Credit Suisse, Swiss foreign banks’ spokesmen tpe r f- J ntfbduction of a self- 
led to efforts at all levels to though income was down in the see the importance of this restraint nrogrammfe. 
stop burgeoning business from case of. Union Bank of Switzer- second group of up-itarket Switzerland's banks remain, 
getting out of hand. Particularly land; all three banks showed a banks on the wane. unlike their German counter- 

important 'measures have been new rise in assets. Virtually A former private bank, too, parts, chary as far as non-bank 

engagements are concerned. 


Good if dominant 

THE IRISH banks loom 
peculiarly large oh the local 
scene. In most Western coun- 
tries banks are accepted as 
institutions of considerable 
power and influence but in 
Ireland, while their corporate 
I image is good, they are seen as 
especially powerful and per- 
I vasive. 

The reason lor this sense of 
| omnipresence probably lies in 
! their size in a small economy 
made up of small units. The 
four commercial banks which 
form the " associated banks " 
had assets of almost £3bn as of 
February last, and of these the 
largest share belongs to the two 
Irish-owned banks. Allied Irish 
Bank (A1B) and the Bank of 
Ireland (not to be confused 
with the Central Bank which is 
called just that). 

In Ireland only the Govern 
ment itself and its semi-Slale 
corporations can compare in 
scale. Small wander then that 
the doings of the banks are fre- 
quently a subject oE public 
comment and sometimes of mis- 

On profitability the hanks profits are inadequate to support 
claim their figures do not really the bank's growth. In the past 
represent growth in a time of few years, he points out., the 
inflation. The Bank of Ireland bank has had to raise £45m in 
has almost £2bn on deposit. This the market to sustain its capital 
represents an Increase on the base. Despite the popularity of 
year of 10 per cent and the the bank issues in Ireland, Mr. 
bank's argument is that in this McGIinn claims there could 
light its profits show no real come a time when the public 

The chief executive nf Allied 
Irish. Mr. -Joseph McGIinn. ilso 
claims that his company's 


says no. 

It is argued too that in 1976, 
for example, return on capital 
employed for AIB was a reason- 



The most recent issue to hit 
the headlines is profitability. 
The banks have just published 
their accounts. Bank of 
Ireland reported pre-tax profits 
of £43m, an increase of 26 per 
cent on the previous year, while 
Allied Irish figures were £35 Am, 
an increase of film. No Irish 
company can show profits on 
this scale and most would be 
glad even of this rate of 

So. as has happened before, 
there were calls for the profits 
of the hanks to be investigated 
and the repetition of a bclier 
that the hanks are somehow not 
doing all that they might for 
the development of the Irish 
economy. This view, though 
rarely enunciated clearly, sug- 
gests that millions of pounds are 
cither invested abroad nr being 
used to create profits instead of 
being made available to worthy 

The debate was given a new 
edge this year with the an- 
nouncement that the central 
bank, which has had the re- 
sponsibility nf monitoring bank 
profits for the past eight years, 
is ro institute a new study. It 
was stressed, however, that this 
has no connection with this 
year s figures. The banks ihern- 
solves strenuously deny the 
charges both of excessive profit- 
ability and incorrect deplovruent 
of funds. 

BIL reports good results in 1977 


■ •:*( ik In:- 

at maximum one mono 

C4. 699 357 

Term deposits wiin banks 


Deposits with non Pantong financial 

7.394 200 

Bills and ncses 


Loans and advances 

C0.C9 1 6 1 J 



Fiduciary accounts 



i 404.856 

Fr/eo £S5els 

1. 779.288 

— 77.034.509 


Current liabilities: 

- Ban-s 

- Non-banking financial institutions 

- Deoosits 

23 991 415 



Fiduciary acccunts 

3.365.91 S 

Sharebclders'eauih- and bomv.vwi 

Avaiiaoji; profit 

•gpitai? 713087 
~ 24 3 868 

- — - 

International services expanded 

- V ^ t1u ! vear ,or Intemaiionele 
a Luxembourg (BID. Lmembourg'r. older.! hank - 
funded in 18ab - and one of iti. Uge&l .«nd most 

JfjE?.** of ^76. the Bank had laWen deose* 
ikwi!? ® ¥ P nd lls , ' lomesl 'c and international opera- 
wrtn and abwfoino Banque 
mCX ? Ura °* sprte lhe PraWems and 
?n of e ' ,ra administrative costs inherent 

sit , 2 - 7, 9 f th!s magnitude. BE. .s alad to repot! 
bv p'^,' h? Pr resul,s f ‘ jr 1?77 Total assets g.ew 
rltXi !? cenl 'O ‘-w Llrs. ?: billion accom- 
pdfi b> a 'corresponding increase in earnings. 

domSte^ri 5 : ;om ‘ Jr ehensiv« coverage of trie 
Bil is ^.rilnn^ i an<3 i lhe &nvi,e 9 e lo issue hank noles. 
oneof ih^«S^ in,efna,lon a' services. Operahngoi 
orf® ,CT ® mosl ,inanr - iaf enters, the Bank 

EuraKinTk a r d «-. nge 0 l ^ etn al'onai laobiiez including 
fcteicin Euroloans; secuntv trading; 

porMoihmSSL and mc,ney rnarke! IransaclKjns; 
rornont,- ri _ ana 3® nv?nt: ancl donvcihalion ol loreig \ 
wf-rk of ,-r.nar^ Thr0u ^ h a far- reaching net- 

ABECQR- - 6 ih? )nd l2 > . ,anc,rf5> association wrfh 

W ? r < ^ s ,sr Pft - :! banking group with 

sefvCe'i S ‘ 00 - Bib provides 

Sin^pore end 

socifitc anonyine 
founded IQS6 

lele.-. J40 9 & bi.ulm lu 

'liJi-u -ntOL-p-, 

rj -qr. — w- . 

■ ■ - K.-vv-.n-r,,.. 

f" ■ w“ m .i itJi. 

According to Dr. G. Tobler. a 
managing director of the Union 
Bank, onlyO.l per cent, of the 
assets of all Swiss banks were 
accounted for by industrial par- 
licip.ations as of the ; 4nd' of 1976, 
with an only Very* slightly higher 
share of 0.15 per cent in res- 
pec.' of the big banks. In Tact 
bani-.s have not always been 
lucky in their outside invest- 
ments— although die Credit 
Suisse stake in the .Tel mol i 
department store proved lucra- 
tive until sold last year — not a 
few of which have fallen un- 
wanted into the banks’ laps. 

It seems likely that Swiss 
banks' shareholdings in non- 
banks are due to decline rather 
than rise in future, for all 
that the Social Democrats are 
suspicious of "interlacing." It 
remains to be seen, however, 
whether the banks' actual in- 
fluence at boardroom level will 
decrease .and to what extent the 
habit of banks' proxy voting at 
other companies’ general meet- 
ings will be modified. 

John Wicks 

Zurich Correspondent 


Financial Times Monday May 22 1978 



Inflation kept 
under control 

JPHE OlifLOOK for Belgium of economic activity 

has in snm» , 7~~° — T ts not some BFr 205hn planned for will be. seen in the 1979 budget 

improved much good by whatever yardstick 1978—41 per cent up on public in which spending will rise by 

of this fur Thun measured. Industrial output, investments actually realised in less than the estimated rise in 

seems to hU?™2EI2 £i nc actualIy fel1 Pf r 1977 * ^ investment effort, the GNP in that year, 

last autumn's ^»?!I er ^ l r0n J year > 001 expected to do plus the special work creation Not surprisingly this has led 
speculation k more t* 1 * 0 maintain its level schemes for the unemployed, to tensions with the Socialists 

the rise in thin! .5v by ***** year - 10 answering recent were designed to counteract the and the trade unions, who fear 
acainsr «hL xlii utsc “ c Marx questionnaires and polls curbs on private consumption that Mr. Tindemans and his 
ouem doiihte r , an i? J? hse ~ Befejan businessmen have been through higher VAT taxes, and Centre-Right party want the 

could fnSSLr #?, 11 saying they intend to increase to attempt to reduce public cuts to bear disproportionately 

currenev ...I *u wn “ a “ investment this year. But there spending on current account, on the social sector and argue 

is resting P ‘pnmf ft r!ahu!r 0n ^d?I lt “ littJe “ffn them putting As such it was designed to pro- that the Government should 
its “ snakl their »oney where their mouths a balancing act between instead crack down on tax 

The National Rnnir wlL are - Certainly Belgian banks ^ ru ^ e Minister I^eo Tindemans’ evasion and close tax loopholes 

repaid ail the ah bave seen little call for invest- dommant Social Christian Party, which allow the well-to-do to 
tttocurred in llSfurrT b ment credlt from P™ate chiefly womed about inflation pay Jess tax than they ought to. 

wSwmEL ® SE sector this year, and the level “d high State spending and Tensions within the condition 

K 8 ! 2*J2SLS2 £ SE <* Laveatment iedlt given by J™* 1 **,*®* the s !£ nd fr are compounded by threats from 

=»« 545 TS £ : HAEM 

5.5 per cent — the lowest level 111811 a year earljer - and trade union reactions. 

since early 1073. In theory lower interest rates R U t f a ]i,- np inflartnn and — J "1 — " — 

Keeping the franc tightly in should now stimulate demand slower ^“ILic^wto h“e ^^Vma^oVtoe 
the snake has undoubtedly for credit But despite die combined to reduce anticipated 2E5J®JJ 
been the major factor in reduc National Bank’s moves, long- tax receipts, and more ^nple £* 

ing the rate of price increases, term interest rates have without jobs has meant larger d lutl plania for 

Inflation was down to 4.6 per remained obstinately high- Any social security payments. Thus rflrSr* 
cent in the first quarter of this increase in Investment is. hi any the current 1978 budget deficit ”1 

year on an annual basis. Some case likely to lag behind that is now likely to be BFr 65bn, JJf” T , if 
VAT increases at the start of in demand, and although super- or double the original forecast fl i* JTJJl 

this year meant a slight rise on market and car sales have Mr. Tindemans and his Social Jv JJJJ ’ hn 57 e ^ *i« 

the 3.6 per cent annual rate stayed buoyant overall demand Christian colleagues seem to ‘ . d ®J5” d f® 

recorded in the last quarter of has stayed fairly stagnant have taken this as a warning 5® 

3977. but 1978 is expected to sign that a radical reordering Gra ® d . “ na ® ces are 

show a decline from the 6.3 per r li of State finances was long over- I mQ “ I healthier, and the reason 

cent consumer price rise in JOuieSS due. is the booming banking sector. 

1977 _ . with its heavy Involvement in 

jmsrje -sre g^s on ^ bond Md 

Banfc-S .biU„ to cut K, W— *5 A .per 3S X/ £ 

rtJSTU *££ wllhoS port-war record of 304.000 Jo ^TS^TSSA 2 '“ 5ta <*?”> '« 

shaking confidence in the January to about 280,000 in Raininm fmm n> year. Even more striking is 

franc's present parity with the 

Hay^bout 6.9 per ceut of the “iMhJSJS ** 

between the 

stronger “ snake ’’ currencies, *ctive workforce. But this drop countries should "not" be* afraid J an * 5 ’ . balance sheets and 
the guilder and the D-mark. « wholly artificial, given that tQ increase borrowino to offset Luxembourg’s Gross National 
Other reasons for optimism since the start of the year some depression Tn their * >ro ® uc t bas increa 

are less easy to quantify. They 29.000. mainly young people, economies. It is the general con- about 1 to 22 between 1960 and 
mainly consist of the National have been put to work in special Knsi]s of Belgian banking and 1977 - while corresponding 
Bank’s “ synthetic curve ” of Government programmes, in financial circles that the over- ratio “ its neighbour has only 

leading indicators, whidi after other words, without Govern- whelming slice of the bond risen from 0.5 to li 

declining for most of 1977 have ment intervention on employ- market the State takes leaves 
shown a steady rise since ment levels would base gone little room for private bor- TTqtitiv 

October 1977. The precise value even higher. rowers and pushes up interest 1Aa rrJ 

of this amalgam of indicators Another and equally worry- rates, while financing the rest Luxembourg Finance 

for any one month is question- ing aspect is the lack af job of it through the banking Ministers in recent years have 

able, hut it is useful in showing opportunities. Last year, for system also fuels inflationary ma de the happy error of under- 
thc direction of trends among instance, the average number pressures. estimating the amounts of taxes 

the expectations of Belgian of unfilled vacancies as a ratio So Mr. Tindemans has pledged brought in by the financial 
business and industry. of total unemployed was just that there will be no increase sector, which now includes some 

The two main ingredients of over 1 per cent; bade in 1970 in the BFr 65bn current budget 90 banks. This has helped to 
the synthetic curve, which are it was as high as 35 per cent. deficit, that the Government cover the country’s small pay- 
surveys of domestic and export What impetus there is In the will present to Parliament by ments deficit, to meet the short- 

orders. are now much more Belgian economy at the moment the end of May a broad package fall caused by lower taxes from 

positive than last year. comes from a vastly increased of long-term expenditure cuts, industry and put the overall 

Nevertheless the actual level State investment programme — and that the first fruit of this balance of payments into the 

black by about LuxFr 30bn last 
v year. 

Flexible banking rules and 

_ — — - _ im lack of any centra] bank-im- 

f Rr S AND CONTINUED from PREVIOUS PAGE posed requirements have been 

E I iSaUIIVIv among the factors attracting 

foreign banks to the Duchy. 
Nevertheless, without scaring 
. . off any of the foreign business, 

together tbe Government and banking 

toss satisfactory l.l per cent executives are looking to the cheap finance packages for f^° ri Hf 5 nro v l ^e^soUd S 
on assets employed The banks’ U.S.. where the development of export companies setting up in 1 management of the 
fortunes are also the the credit card and the com- Ireland. . These make use of the n uchv * ban i» Mr Pierre Jaans. 
Exchequer’s because 46 per cent puter holds out the possibility fact that export companies ^ Bankin" Commissioner says 
of profits are paid to the State of a cashless and chequeless setting up in Ireland pay no 

in taxation. society leading to large-scale tax on the value of their has^ M 

The banks also refute any ®“ c fund ^ SfK wSle res^ 

The diversification into mer- relief , 0 which it tnsy be J*? 108 ^ * r °wn * 23 i* r 
whole-heated in tbair chant and secondary banking has entitled, so the relief is passed “JJ 

of Irish economic development been eVen more significant, to the bank which can offset it 

All of these Securities have been sold. This announcement appears as a matter of record only . 



$250,000,000 8% Bonds Due April 1, 1983 
$250,000,000 8.20% Bonds Due October 1, 1985 
$250,000,000 8%% Bonds Due April 1, 1998 

Interest payable April 1 and October 1 





A. E. AMES & CO. 





Incorporated Incorporated 




— Securities Corporation 



























International, Inc. 


able 22 per cent, while the profit technology, although this is still industry provided 
to as.sei*: ratio showed a much at an early stage in Ireland. But Government .to put 

According to Allied Irish 

While the resources of the against its own profits. 

Banks have temporarily been 
encouraged to forego dividend 
payments to their parents 
Leasing finance produces the abroad, so that their average 

the associated banks 
still lend the biggest slice of 
advances— 24 per cenL— to 

10 DC 


executives the hanks hare funds a;JSOC j a teci banks have increased 

^rttods for’ investment’ They fl” 08 ? 'Snfa “” st rt*cUcul»r results but the 0 f paid up rapitsl to tbird- 
”onld arsue rather that any KX “^aid by a factor of °i iivertment which party debt rose from 3.5 to SS 

shortfall in the private sector T^finimce and merchant J? der thl * per cenL (the legal minimum is 

is due more to the growing subsidiaries of the two hig 3 Percent). Parent banks have 

proportion of resources ta!fts now . ran k behind the U u f Ieasl f 8 and been encouraged to make 

swallowed by the Government aSoriated banS themselves in S,S“ abl ® ri toe day ’ ttKlay man 1 a ? er of toelr 

and the public sector. S finance, and in a typical pack- Luxembourg subsidiaries an ex- 

, J Kin Ti*!ch ¥ e a Mvi118 Of 4 per cent on officio member of the 

Indeed the two fii 0 Irish banks . • » file overdraft rate can be board, a move that increases 

can lay claim to have presaged AlTlVal achieved. the Lmcembourg auSori^ 

the Irish economic miracle The Irish banks have also legal control over to™ 

of the sixties and early The n on-associated banks pioneered the term loan system There is a new addition to the 
seventies. At the beginning of have assets of over £1.5Dbn com- in an attempt to provide range of services offered by 
that period there were eight pared with only £400m in 1971. industry with project funds to Luxembourg banks— “Old. Last 
major banks operating in The opportunity for further cover short- and medium-term December Parliament repealed 
Ireland, all of which had been growth in these specialised needs. Over half the lending ^e VAT on physical transac- 
mvolved in fairly simple com- areas has brought the arrival of of the associated banks is now tions in the metal Mr. Jaans 
merrial transactions for over a so me big . European banks, on this . basis— an interesting stresses that the aim is not to 
century. Algemene Bank .Nederland and difference: from Britain, where ^val the major European gold 

Jn 3966 a sweeping series of Banque Nationals de Paris are the banks are only beginning centres of London and Zurich, 
amalgamations took place lead- among those already in the l ? _???£ in this direction. with their daily gold fixings and 
ing to the emergence- of the country and the Kreditbank Is - The. banks have also moved large networks for secure 
two major banks. The Bank of the latest to announce that it Hrto the provision of longer handling of large gold ship- 
Ircland acquired first the Irish intends to open in Dublin, jenn funds, particularly to meet ments, but rather to let banks in 
branches of the National Bank apparently with an eye to the ^ ee “ s °/ a gn culture _ and yj e Duchy provide a modest 
and then the Hibernian and secondary finance market k y “ ousmg - additional service to companies 

National City banks. Allied American banks have been are now lem “ ng and their richer indiridual 

Irish emerged as the amalgam represented since 1965. Mean- year tenns - clients. 

of the Munster and Leinster wh ii e toe Irish banks toem- By a Correspondent David Buchan 

Bank. Prosincial Bank of selves have expanded abroad.- r 

Ireland and Royal Bank of aiS now has 26 branches in 
Ireland. Britain and Bank of Ireland 15, 

So suddenly Ireland found and both have international 
itself served not by eight small money offices in London. Both 

traditional banks but by two appear to have had success with 

major groups which rank in their British operations and 
the top 200 of The world’s according to reports British 
largest banks. The other two customers have sometimes 
smaller associated banks, the found the Irish banks lend 
Ulster and the Northern, are more sympathetic ear to their 
subsidiaries of the National requirements than their native 
Westminster Bank and the Mid- banks. 

land Bank. The real benefit and purpose 

These amalgamations made of toe banks’ rationalisation was 
possible considerable develop- ^ nced t0 g nancc Ireland’s 
ments in the role and opera- ^ agricultural 

tions of the Irish banks. There development during toe period, 
was rationalisation which made ^ interesting to note that, 
possible the closure du P* perhaps as a throwback to their 
i,»d branches, although with •* ** - «~ 

„ne hrarn-h to every 3.000 of «« 
the population the Irish are 

st ill hr* 'Uv ban ^’ aIso agriculture, white .30 per cent 

a “ r”maoufa^ 

ted hv economic growth: the mgsector. -«oc»ted 

rat*, of Turnover of funds on Even so, it is the ■ assooatoa 
rurrem accounts has increased banks, because of their B® 
bv 60Q 1 per cent in the last ten sire, which are toe major »urre 
v^nT The banks are bis of funds and they have specific- 
iaough to adapt to computer ally utilised the incentives toj 


April 6, 1978 




in 1977 . me mum fiscal year 01 me MM IM, total assets 
reaclied a level el Fr. 1.975 mlBR, winch represems an increase 
0! Fr. 143 million or 8 Z over me precedinii year. Net profit increased 
19 1 rising from Fr. 18,2 million 10 Fr. 20.1 million, 
fiipital mods increased 10 z, from Fr. 1*1,2 iRiim 10 211,3 millioe, 
el which 135 million are reserves. 


Main Office: 


6901 L'jS> <r >o 
via Can n.-a3 ; 

Phrjic: 0C-1 Z1 41 W 

RepresErlaUve Offire 
in G<?ifr.6nv 

8008 Zyricii 
. Farberstrasse 6 
Ptione: 01/32 B677 

via Livio 12 
Ftione: 091/44 0912 

6600 Locarno 
via Cisert9 
Phone: 093/31 71 81 

1006 Lausanne 
16, rue de Bourg 
Phone: 021/20 S0 11 

jMasiau i Bahamas) 
IBM House __ - ■ 
Phone: 3231767 

6C>00 Frani:furt/M,1 
' Ziirich-Ht)us ODernolz, 
Phone: 061 1 •- 72 C>3 27 


The oldest bank in 
the United States. 

When American banking began in 1781 with the chartering of the Bank of North 
America, we borrowed many ideas from the mother country. They were the foundation 
of our reputation for integrity, professionalism and personal service, worldwide. 

Today, we’re First Pennsylvania Bank and we’re here in London to provide ail 
your banking services. When you have banking needs in any market, we’li be here. 


First Pennsylvania Bank 

5 Trump Street, London EC2V,8HP, Tel.: (01) 606-4571/ Telex: 885115 

® 1978 PBnujrhranta Bank u. Menttar fjW-C. 

Financial Times Monday May 22 1978 




Some changes for the better 

HAVING BEEN buffeted by 
three bank collapses in the first 
three months of the year, the 
Spanish banking system now 
feels much more at ease in 
coping with the problems of a 
depressed economy and tight 
money supply. Predictions are 
still unreliable but it seems that 
the most difficult period, which 
lasted from October through to 
February, is over. In particular 
the Bank of Spain believes that 
further bank collapses are un- 
likely. and. if such an occasion that it is now in a much 
better position to take the 
correct remedial action. 

The causes of the bank col- 
lapses had some common 
features with the crisis in the 
British secondary banks in the 
early 1970s. But in general, the 
causes were a product of the 
Spanish banking system — a 
proliferation of small banks and 
lax controls. Of the 100 
banks in Spain, the big 
seven (Banesto. Bilbao, Cen- 
tral, Hispano-Americano. Popu- 
lar. Santander and Vizcaya) 
account for over 60 per cent of 
alf deposits — while the bottom 
30 account for no more than 
five per cent of total deposits 
in the system. The three banks 
which collapsed were all small 
local or regional ones. A more 
significant feature was the 
inexperience in banking activity 
nf their mam shareholders, all 
of wham had bought into the 
sector within the last five years. 

Thus when money became 
tight last autumn, small 
inexperienced banks which had 
been competing for deposits 
with attractive land often 
illegal) interest rates were 

The most spectacular collapse 
was that of Banco de Navarra 
which forced the Bank of Spain 
to intervene in January. A Bank 
of Spain official and two adminis- 
trators are still sorting through 
the bank’s tangled web of 
financial dealings, but total 
losses are expected to be over 
$60ni. of which two thirds are 
debts on the inter-bank money 
market. The Bank of Spain in- 
tends to wind up Banco de 
Navarra's affairs and has refused 
to refloat the bank. The Navarra 
collapse directly affected 
another small commercial bank, 
Cantabrico, which was taken 
over by a specially formed ‘‘bank 
hospital” whose Pta 500m 
(S6^m) capital was subscribed 
50-50 by the Bank of Spain and 
the entire banking community. 
This bank too may be wound up 
eventually — while the third 
bank affected, Meridional, also 
taken over by the “hospital" is 
expected to be refloated. 

stop-gap measure necessitated 
by the previous lack of proper 
authority lodged with the Bank 
of Spain. But for two months 
now the Bank of Spain has 
acquired wider powers both to 
inspect banks and to intervene 
if it is not satisfied with the 
accounts. Thus the need for such 
an institution has been elimi- 
nated. at least in theory. “The 
bank hospital is a hospital with 
only two beds," a senior Central 
Bank official commented. 


The Bank 
torn between 
system and 
propping up 
support. The 

of Spain has been 
the need to bolster 
in the banking 

a d.esire to avoid 

those banks whose 
clearly deserves no 
bank hospital, the 
Bancaria, was a 

One consequence of these 
bank collapses has been a switch 
of deposits away from the small 
banks to the larger and better 
known national operations. This 
trend has been evident both in 
time and sight deposits as well 
as foreign currency deposits. In 
the first three months of 197S 
deposits in the small commercial 
banks declined by 10 per cent. 
Only part of this decline could 
be attributed to a withdrawal 
of savings to meet outstanding 
obligations and the difficulty of 
smalt customers in obtaining 
credit. Significantly, too. the 
four foreign banks operating in 
Spain saw their deposits in- 
crease by over three per cent 
during this period, the highest 
increase among the banks, sug- 
gesting greater confidence in 
outside institutions. 

In turn the present recession 
is tending to consolidate the 

position of tiie big banks, per- 
haps an inevitable result of the 
big banks possessing greater 
resources and more advanced 
management. There are still too 
many banks on Spain and it is 
only a matter of time before the 
number is reduced. The process 
of consolidation has been evi- 
denced by d- series of important 
mergers since December. The 
main ones have been the merger 
of Coca with Banesto and 
Madrid with Banesto. thus en- 
suring Banesto 1 s position as the 
largest banking group in Spain 
— and the merger of Iberico with 
Central— the second largest 
group. In- all three cases the 
main motive appears to have 
been the desire by a family 
with a controlling stake (Coca 
in Banco Coca, Fierro in the 
case of Iberico and Castell in 
Madrid) seeking to ensure 
greater security for the future 
by trading in their equity fog 
a stake in a larger bank. More 
of this is expected in the coming 
year. There is also room for a 
number of mergers between the 
small and medium sized banks. 

Such consolidation is a 
healthy sign. Nevertheless it is 
worth underlining that the 
mergers have not always been- 
conceived in a very organised 
manner with the respective 
interests of the banks dovetail- 
ing. For instance Banesto 
hurried through its merger with. 
Coca once it learned that its- 
rival. Central, was going ahead- 

with its merger with Iberico. 
The value from such mergers 
will only' begin to be felt once 
management can be rationalised 
and the institutions are fully 
merged So far this is not the 

Consolidation has also been 
accelerated by the prospect of 
the government permitting 
foreign banks to operate in 
Spain. This measure has been 
under consideration for two 
years but so far the government 
has demurred,' concentrating on 
more important economic deci- 
sions. The necessary decree is 
now unlikely to -be ready 
before the summer; even, though 
officials. Say that the.. mairr prin- 
ciples have already been 
accepted. The first basic prin- 
ciple is that of the -6Podd. 
appHean ts, -only - a few^-perfr aps 
no • more than, ten- - — ; will : 
initially, .be allowed to operate. 
The: second .principle ' is that 
these '-'.hanks should .have- an 
obligatory ’.capital requirement 
of Pta 750m. (the same figure 
for Spanish - hanks).' Initially' 
there was talk of. a . Pta. L5bti 
requirement;— tiiq ” Obligatory 
level of capital and reserves for 
Spanish banks, hut this has been . 
discarded -sfrice- such .a require- 
ment would, have inhibited all 
butia- few; of the- applicants. Still 
unresolved^ it seems, -is the pro- 
portion of ' activities permitted 
in pesetas and the extent they 
will be able to deal in foreign 

The stimulus and competition and to trade in foreign currency, 
provided by the presence of Last July the Government 
foreign banks is expected to be decided to begin liberalising 
more psychological, at least at interest rates, a move which 
the outset. The foreign banks affects both the commercial 
are more interested in whole- banks and the cajas. Traai- 
sale b anking and will not make lion ally the banking system has 
immediate inroads. Those who been obliged to set aside an 
fear competivity — still a exceptionally high proportion 
majority, one suspects — fail to of deposits for state-selected 
realise that the bulk of Spanish- investment, in addition to that 
foreign currency Joans are pro- portion normally placed with 
vided already by the inter- the Bank of Spain. Such a 
national banks. practice acquired the name of 

Two other factors are also “privileged circuits" because 
going to have an' important in- of the privileged position of tn 
fluence on the banking system recipient who had access to 
in the future — the enlarged role funds at rates of between a 
of the. savings banks, the Cajas per cent and b:9 per cent, ine 

de Ahorro. and the liberalisation commercial batiks earmarked 
of interest rates.. The Cajas de 25 per. cent, of total deposits. 
Aborro play the same - kind of the 24 industrial banks li per 
role as building societies in cent and the cajas as much as 
Britain but their position within 459 per eent. When funds were 
the banking system Itself is. con- needed for establishing an 
siderably more substantial. The industrial base such a dirigiste 
Cajas account for just over 30. approach to interest rates was 
per cent of the banking system's acceptable but it - has become 
deposits. Regionally based' and increasingly abused and the 
established as non-profit making practice makes nonsense of 
institutions theoretically establishing a proper money 

designed to attract and assist market 
the small saver, -these institu- _ . . 

tions have shown themselves ex- T ,ihprjJ IlCftnOTI 
tremely aggressive and in the L/1UC! 
past two- years their growth lias These high proportions of 

been more dynamic than.' the state directed investment are 
commercial banks. Since 197$ being gradually reduced — 
their deposits have increased though not entirely eliminated, 
at an annual average of 21 per For instance the cajas will have 
cent compared to under 18 per the proportion they are obliged 
cent for -the commercial banks, to set aside reduced to 35 per 
Recently they have been allowed cent by J9S3. In the case nf 
to discount commercial paper the commercial banks the .pro- 
portion is being cut by a 
quarter of a point every two 
months to an eventual 21 per 
cent The reduction in the 
availability of cheap credit has 
permitted the realignment of 
the overall interest rate 

Here’s to our 1214 banking partners 
all over the world. 

Recently we celebrated the 40th anniversary of 

Girozentrale Vienna. 
We know 40 years is nothing to be particulary 
proud of. Many feiiow institutions were founded 
at least 100 years ago. Some even pride them- 
selves on being centuries old But despite our 
youth we have become well established in the 
international banking community. We would like 
to declare how grateful we are to all 

the fine institutions who by friendship and co- 
operation have enabled us to' become what we 
are today; a 100 billion Schilling bank. 

We know how reassuring it is to be able to rely 
on friends in London, New York and in all the 
financial centres of the world 
This is why we think that we ought to tell you and 
all our banking partners all over the world, there 
is a Mend to rely on in Austria 

Girozentrale Vienna 

Your friend in Austria. 

Girosentrale Vienna, A-1Q11 Vienna, Schubertring 5 , Tel. 72 9 40 

Dealing in Securities: Mr. VON!AC?:A,TgL?3 94 5:Q,Teiexl-3155- Clear [payments and checks: Mr. KONIG.Tel. 72 94 240, Telex 1-3006 ■ 
L/C, c ' * " ' ' 

Teiex : 


structure and far the first time 
official credit institutions like 
the mortgage bunk will be made 
to raise up to one-third of their 
credit needs on the open 

The effect on these various 
changes will take time to 
absorb, and will be conditioned 
in no small measure by the overt 
all performance of the economy. 
Using monetary’ instruments as 
the main tools of economic 
control, the authorities have sue* 
eeeded in curbing the growth of 
money supply and will, on pre- 
sent predictions, comfortably 
attain their target of a 17 per 
cent ceiling nn the increase in 
money for 1978. If the reces- 
sion does not but tom out soon, 
the increase will be slower, 
although the authorities have 
already provided for a 2.5 per 
cent band on either side of the 
target. But this has acted as a 
sharp dampener on demand and 
new investment is very sluggish. 

In the first three months of 
the year investment grew only 
1.3 per cent, just over a third 
of the pace of itie same period 
in 1977. In fact the banks have 
the funds but are finding it diffi- 
cult to dram up clients. Every, 
one is waiting for signs that 
Industrial Inventories are begin- 
ning to be built up again. Su 
far there is no indication. In 
the meantime the authorities, 
faced with depressed domestic 
demand, are making a major 
effort to stimulate exports by 
doubling the availability of 
export finance, largely through 
the state-controlled Banco 

Robert Graham 

Madrid Correspondent 


The year of 

SINCE TAKING office in Janu- and approved a month later, 
ary, the governmental alliance introduced tough disciplinary 
of Socialists and Christian measures known to be favoured 
Democrats in Portugal has by the Fund. These involved 
seemed prepared to adopt a tighter control of public and 
much more realistic attiude to private spending through in- 
the deep economic problems creased direct and indirect 
facing the country. As the new taxation. This year’s tax in- 
Minister of . Finance and Plan- creases — 10 per cent on ordi- 
ning. Dr. Vitor Constancio put nary income-tax and estate 
it: “If 1977 was tiie year of duties, 15 per cent on capital 
politics 1978 must be the year gains. 20-30 per cent in sales 
of economies.” The political tax and heavier duties on 
bickering and indecision that cinema and theatre tickets and 
preceded the downfall of the tobacco are expected to bring 
minority Socialist Government over 40 per cent more tax 
in December and characterised revenue than last year, 
the month and a half interreg- 
num period that followed, is be- UinCrCIlCG 
lieved to have cost the country . 

an extra $350m in budget deficit At the beginning of April the 
through uncollected taxes and Government bridged a major 
inept administration. difference with the Communist- 

i dominated trade union move- 

- , L ™ mom alter more then two 

^ nr monlh = ° £ negotiations. Union 
gl a ™> ^ G^vornment As ,M “ ers peopled a =0 per cent 

ErowttTrate teTrTn't, £££ Xuattto^eaKs taJZLtal 
BfTttST ‘economic tJ (drcuim “? „ unemployment benefits, 
stances™ warranted PoEESK, "J“ .“I*™ “ ,ons 
trade deficit grew sharply to Th f - . JJ,’ h _ ao _ nitn „ 
S2.73bn, representing a more m T *! e tMnin8 of annoua . ce ’ 1 
than 50 per cent, deterioration iS c ? ml K 

com oared to 1976 35 11 dld 3USt kefore the lmple- 

T bis trade imbalance was re- £*** 

fleeted in a worsening payments 016 

position. The current account 1 ha . d J h ? nde ? a » p 

deficit is now estimated to be 1° Sf.f?®? 11 ?"? 8 return - fo 5 
91.5bn compared to SI Jbn in 00 

pre-revolution days. The situa- F « r . Bovernmen tal 

tion would have been still Socialists and 

worse had the country not ex- ^• hn ® tjan Democrats the agree- 
perienced marked improvement , re . pn f sentet * a maJor 

in its two vital sources of J^J«giC|il victory over those 
foreign exchange. Gross p r !i° Cia ^ 0 I 1 - sht tha , t . 1 . ts iQhereBtr 
tourist revenue rose by 60 per ^° n ® ervati ? Tn would lead to open 
cont from $256m in 1976 to “^foontation i with the unions. 
S410m in 1977. Net tourist re- , * act \, des P ite occasional 
venue totalled $279m in 1977 is ® lated strikes such as the series 
representing a 94.1 per cent! °£. stopp “ s . es at 1116 important 
increase over 1976. snip-repairing yard of Lisnava 

During the same period ex- ln .** anuai y- Portugal has 
patriate remittances rose by 63 ^ ri * rice ^ a remarkable measure 
per cent to Sl.ibn. c ' f ‘"duatrial peace this yea* 

Nevertheless Portugal has According to Government 
had to resort to borrowing from J* ures absen le«?'sm this year ha*, 
abroad, and also to running fai,en fro,n 25 to 5 per cent, 
down its foreign exchange and K The ad °P tion of a toiUS 
gold reserves — what economists bud * etar >' discipline and a strict 
here refer in as the country's "ages policy was followed at the 
“last line of defence'’ against beginning of this month by tb* 
total bankruptcy. Bank of Bank ° r Portugal's announce- 
Portugal officials estimate the ment of a 6.5 per cent devalue 
country's outstanding debt to *‘ on ‘ n the escudo as a further 
be just below $5bn mark. Gold nieas ure designed to ease th* 
reserves during the past year c ounlry’s balaace of paymed 16 
sold or mortgaged, have fallen Following the 15 P* 

from 85 1 tonnes to 741 tonnes. cen * devaluation last Febn 

_ . - - February. 

foreign currency reserves have 1116 latest change is expected 
fallen from $260m to $111 m. to make Portuguese export 3 - 
Faced with this situation the more attractive to oversea* 
ortuguese Government had had foyers and boost revenue ft®*® 
no choice other than to accept tourism and expatriate retw*r 

IntPrSatiUiaT 8 li ” 1 dovvn b >' the tonce * still more. 

Monetary Fund. The Tact that the devaluate® 

h J ad existed wa * formally annnunced 
f a ^P?r 2 e !l and the Fund Bank uf Portugal bef-re g 
considerabTv i ™ J lme round [° rmal comment had been wjj 
the Portuguese rf ° ut fay by the Government on Aejjj 
f, r j u 5 uese Government s nieni reached with the 

m 1 order de befor!* 0 ti ,Ut ' l ? house naliunal Monetary Fund 
beeS officii w th t l alks had ‘he increasingly central. 

The budoer C0 ^' luded - heing played by the J 

Parliament on March " ^ ? h resCnt driv - e ' 

* l cn io iaa,t the country s economic r 


^ ® nancfrf Tinres Monday May 22 1978 


i^Ul ti<* Ij^£> 


Difficult period 


Dutch imports: Dfl. 111,920 million. 
Dutch exports: Dfl. 1(^197 million. 


full e time Protecting 

full einph.yment and stimulat- 
ing investment designed to 

::r v k lhc - ^ 

r „ ■ n,,s >* a new situatinn 
loniL'd T Blry s ° l0 ”S acrus. 

ln«h r^" 10 "' ‘ breaki "S 

Between 1970 and 1977 
J “ s r ‘?? ,JNp »n real terms 
\ r . Mng at an annual rate 

the GFrnT” 1 * l;0mpared with 
lECD ’Lurope average of 

7 a tr e : cem ‘ and was the third 
ras growth rate recorded 
y>tlnu the OECD. Inflation at 
‘Per cent, per annum was below 

Win.*'*" 8 * rate in ^ West 
"tin unemployment last year 

Z7J*? S 18 per cent. 

Austria s record stands up well 

nf h u" compared with the rest 
of Western Europe. 

fl 5“ l th P e P ric e Paid in the 
form of exceedingly large 
balance of trade and current 
accounts deficits on the one 
P” d ? nd a ^ady rise in the 
federal budget deficit on the y. 'Si: 
other proved too high, posing ~ 
a long-term threat to the very 
foundations of Austria’s post- 
war economic miracle. The 
Government introduced a pack- 
age of restrictive fiscal and 
monetary measures aimed at 

reducing domestic demand and The l 

the current account deficit — 
which last year even on an 

adjusted basis fi.e.. excluding sect °rs in Western Europe the 
loads and lags to the stagger- steady expansion of subsidised 
-«S and unexplained total of ‘-’fedits contributes to a dis- 
fcch._m>n.) reached Sch.28.9bn. touted structure of the capital 
(about £T.03bn>. Though the and money markets. • 
latest forecast of the Institute Moreover this tendency, as 

The Lacnderbank branch at Dombim. 

\»* ( <*< +*, 

tiie main banking 


by a further half to three- 
quarters per cent 

r of 

------ — *■«. uit xusuiuie ivuucury, • as Assets wAwcuiugiy anracuve. 

lor Economic Research indi- pointed out recently by Dr. Karl (SrtUm.) Employes Th “ e bou S^t under the fiscal 

it?- lhat tl,e currenl account pa,e - Director-General of the Creditanstalt 125.0 6,032 Privileges granted to small in- 

S K C , , L 5h0uld fa ^ ^ ,l * • vear by Girozentrale. places the small (107.2) vestors up to an annual limit 

bcn.iobn., both the Institute aod medium sized companies at Girozentrale 103.3 1 410 of Sch - 10 0-000 per head produc 

and the new President of the 3 disadvantage visa-vis the (8S.9) currently a net yield of almoj 

Aationalbank. Professor Dr. large groups when U comes to Laenderbank 73 6 3 m 6,3 Per cent. 

or <?P Mk n k,n K . , Tn' ,17 . r ‘\V ir « nl ‘"« v . Without (66.C, ' Tbe gfner.1 ecooomic am 

Policies— at i M -t h fr r *:* tnc ! ,re , in ^ ? scal treatment Zentralsparkassc 61.6 2,189 financial situation and the pre 

hein- lhe Ume ^ d i,L??i°';‘ S,nnS con ? rai . n * (55.8) ™ions of the new banking lav 

**' cdpital issues ihe access to risk Postspa rkassc 53.6 1,691 have combined to give a powei 

/-•n capital is bouud to remain diffi- #4. .» ’ ful tlirust to comoetition in’thi 

Clamour CU There St ca? e be no donht th 6t *nossenscbafU. 51.7 673 ? maH ^' orId °f Austrian bank 

fha T ! lhe dam *“?' ground ^e latest investment promotion its* replacf' 

? zsnxz ssr £ ssr* sr a « 

■seen Austria s economic brewery. paper and textile in- *“«"“*»* (42 o) 231 “ °“ ho * 

growth dropped rrom 5.2 per dustTies wiU accelerate rather •> , . . u . <“ 9 - 9 > mous ° f t ? e anon ^ 

rent, in 1976 to 3.5 per cent, than retard the trend Inwards 1M0 a KS2*' 

:.r<t year and is expected -1 growing State, and thus impli- ^ V * ' (nominally at 45 ner JS £?, 

- h rh y ,. . P<?r r ?’- Ihis » u,i1 * 31 influence, oven Voiksbankcn AG 399 in the caL of farger Se^ 
y Al ‘ . ,h ‘: ,ap,(3 - ruw,h °f 'He over the nomina/Iy still orivate vieidintr ,.n t„ « 

external detjeu and indebted- mdusl rial sectors. It is against ’ of bearer 

- v r,, U : e rCSU!! uf ex ^ C5; . ,his creeping suLijdisalion that lral fiankl - including open under Dr. Krei sky’s moderate 

rvn'LIir i A ,nL,rcjS( ‘ !i i . ani1 Mr. Rudull Sal linger, chairman operations to the tune Socialist Government SSre 

. J Bl fi 0 . . M,d * Pt Pohcies 0 r the powerful Federal of Si' h -Jbn.. expansion of refin- than ever a prop 10 capital for- 

lo.mwcmiunK^h 3 h' Chan,b,?r or Economy, warned facilities for exports and mation. The law also provide 

in - in -i-* a n a '' ,nI thc !" 1 P ,fnd - in a recent public staienicni, the reduction of the “penal r orimprovedproteclionfornri- 

.-.mMimcr d'uraWes addins that lJlc lales t ra 5 e . ’ on ^ he non-fulfilment or vale depositors and the instftu- 

' ., n ‘ P er mem promotion measures liquidity ratios from 5 tionalisation of “lifeboat” 

unt. to jo per cent, the latter oer»nt. tn->n na r,. nn » funrie tn n r n t. M 

INSTITUTIONS ZV: V . A I . . - T T ^^*7* 

(EDd-1977; ^ m brack e ts As long asyouusethe made bank: NMB Bank. 

Assets 1nn 

(107 ») 
( 66 . 6 ) 

1 410 ® cb -lfifi.000 per head produce 
currently a net yield of almost 

3.183 6 - a per OTt ' 

The general economic and 
2,189 financial situation and the pro- 
visions of the new banking law 
1,691 J av ' e combined to give a power- 
ful tlirust to competition in the 
673 ? maJI ''‘ orld of Austrian bank- 
ing. The projected legislation 
1 7S9 ' nI i re P ,fl ce provisions dating 
back to 1939 and provide for a 
231 strengthening of bank secrecy. 
The institution of the anony- 
1 9io ? lous sav ^ n ** account, provid- 
ing for a tax-free income 
399 . tnQminali >' at 4.5 per cent, but 
in the case of larger deposits- 

yielding up to S per cent!)-, and 

of bearer securities remains 

Holland's prosperity proves to be a 
fertile soil for any kind of business. Just a 
glance at Dutch trade shows that it is con- 
siderably more important than it sounds. 

With the largest, busiest porr in the 
world, rts vast transit trade and multi- 
billion imports and exports, Holland— 
although a small country-plays a signifl- 
. cantrelem world economy. 

So when dealing with Holland, deal 
bank lhat knows Holland best: 
the NMB Bank. 

Though NMB ranks number three 
among commercial bank's; it is number 
one with thousands of medium-sized and 
larger companies that form thebackbone 
of Dutch business. • 

Because NMB finances a consider- 
able amount of has 
gained an expert knowledge of inter- 
national trade. 

So, the nextrime you deal with 
Holland, turn to the NMB Bank and turn 
yourself into an insider. 

NMB Bank. P.O. Box ISOfl, Amsterdam, 
telephone:.. o’u-5439111, leler U4U2 nmb nLNMB Bank is 
repte -cnicJ in New York. Sio Paulo and Beirut and has a 
hr j,uh in Curasao. In addition we own a Finance 
Company and a Trusi Company m Curji,aoJNethet1ancl5 
A:, Idles. In Zurich NMB (SchwiHAG. is ai your service. As 
a member ol ihc Inter Alpha Croup of Banks we have mint 
rep-escntative oflices in S3o Pauto. Teheran. Singapore. 
Honji Konu and Tokyo. Balance sheet toul as at 31-12-1977 
Dll. 27J25S million. 



sirr- in numeta^-^ community only a few months re«nctiou of excessively high But the main effect of the 

SKT m ,n .-,ITSK bl Jorti a — 0 »=.' "( increased com- rare levels. legislation will be ,o 

inenred hy restraint in incomes f" 1 ' taxat ’° n a '"? 01her fiscal a result of tile liquidity S^riou? se«2n of 

policy this year. lev , ies “eluding die conlrover- squeeze last year the call money and of v bankl Pg 

.... ... • n siaJ transport tax. rate rose from 6 per cent to accelerate the trend 

I ' I .ir ‘ fla V un . rat . e Nothing could indicate more 8 Per cent, by the end of 1077 L ain banJdj3 S- The 

1 N on a jcaMu-> ear bas.s c i eaf j v difficulties of equity yields in the bond market • « m P etl u 0rs are lhe cojn - 

haffaS financiny lha " lhc facI '** T* 3 ^ er ove" in ZT and^ ^ S1 ^ 

, f ‘ ' f year only four companies man- West Germany. Since the end DD^rafivM ^ tk G ^ ann * rs c®* 

in 19"6 a id *5 5 ner ^-ent iri a?ed tu ra ‘ sp a mcre Sch.lOdm. the first quarter of this year a i so - *' -iTJjff? ,S ' 

!? , a 'o ' I According to a survey compiled financial commentators have ®” u . arion ^111 the! 

.in expansive monetary policy. *d«.ioti companies " j 11 !: 11 bond Weld’s had Tall en fronf 9 now havc lheir own merchant 
Meanwhile the Government has a ^nunted for «4 per cent, of the - f c * ‘ „ f J2? S “*? ban ^ outlets. Furthermore, 

given ihe jin-ahead for a large- ca PJ Ia * of quoted companies Qn ^ seeonriirx- P marbJ! t 'r ai,d lhey are no longer regionally 

in vc. >1 men t drive, hacked 1!,at 15 Ulc reason «hy S 8 cfint ° 83B restricted to Vienna, 

hy into rot relief. respected bankers led by Dr. ; ■ P^J" ce ! ]t : Oesterreichische Laender- 

Paradoxi.-allv. the long dda>- Heinrich Trciehl chairman and current^ uader thfr “w leadership 

in ivvcaliin: details of the mea- director-general of Creditanstalt. ^ c t * of Dr. Wolfgang EmdL 

sure, help.-.! in engender stag. Austria's his^est bank, so consumer cr^'its con te^en 0n a merger of 

naiiMit ai the very time when strongly inttjsl on action against u. 5 per ^ f d HP outlets which henceforth 

Ihc economy needed stimulus, the hscal discrimination against However ir i s now' nrertiS wai derate under Jhe name of 
In a country with one of the equity capital. The latest moves that interest rates for lone-term !‘ Merfc ur ,, bank. Dr. Erndl 
largest nationalised and public by the Nationalbank (the ten- credits will fall by the summS has also 5iven Public notice of 

his determination to merge 
OEd (Oesterreichisches Credit- 


. U1 “. P^reni company in order to 
.. rationalise and to improve 

1 1*1,1 •. Til,- vimnnrt wliii-h lhe dnstne* lit. a nri ... „ . orations and adminl- 

; — “ (wsiEiiwcniscnes UTealt- 


. 1/1 . P^ent company in order to 
.. rationalise and to improve 

Jcm.N. The support which the duslries like agriculture and State capitalism. Today most strariom Operatl0ns and admmi - 
tkmk has heen forced w give ^hories^nd exports. The Bank hanks have recovered the Under the new regulations 
the lining Portuguese managed to include the management existing before the codified also in the banking law’ 
e c. »n n my ha vi ru t a 1 ly niaiic 1 1 o*>n i tntetiun . business vrithra revolution and the bank unions Hw opening of new bS 

;hc nmr ousiv ut the whole (he category of a labour- once dominated by the Left havc branches has been fully liber?, 

Pori ii-’iio-c hanking ,vslc„, recently elected as their M.. Since last” sumVerS 


95/119 Rua do Comercio, 
TELEX 12 191 — AR1EB P 
13 370 — ARIEB P 
TEL: 36 03 81 



230, Av.- da Uberdade 
TEL 55 52 48 — 55 75 76 

; , ", — .vs uuuuuaicu oy me loeti nave nas oeen fullv libera L 

Puri ucin'-c hanking .-yslcui. ‘ , 0nl ? recentl V elected as lheir ised.. Since last summer 734 

M.uii-iary ni.-trumciUs are a JJ 1 1 b> 5,pL ' L, ‘ l! p e_ Jfaders members of the Centre new applications have been 

ke, clciucui in the Government cieariv n thc uncertain S ° Cial Deo,ocratic Par ^ fronted (the total of existing 
,nu Is ... «"»«»•«; crI h"e . . .. &!£?“•'*»! WOO). sSS 

a mu »umed that i:s discount jj, ]OS jai^ 5oSnrT*bv llie C central J hey ^'' er ® still in private hands. of * he new law. 
i.’iiiliiu'. ra!o would be raised baiI j. j fi lQ jj lc i n< j 1V iduaI ^ se of fore >Sn trade And w^hat about the Austrian 

mon 13 it* it* per eent. Accord- hanfcs lD decide who deserves a fina “« They can still seek the B ^ hl L llft f T ? . ^ oe w President 
mcly the interest rates on most «-ii fe .i| ne a * during lhe tough “sjjets they wish. N «tionalbank in his first 

i«f (he bank's credit operations ahead What remains to be seen is Public statement came out un- 

have also been increased by 5 ' whether ip the difficult period eq . ul . voca ^y in favour of main- 

mi Innr-f that ?i« tk n taming the <;rrpn'*h 




® sir 3 * 5 







have also been increased by 5 

j»cr ecu 1 . 



TTuemer m me difficult period rav °ur « main- 

that lies ahead the country USiS® the sr T en Sth of the 
as a whole can accept the sense while resorting 

i- of balance that has been re- P ri j nari v to restricting demand 
li established within the banking f£ d prompting structural 
3 sector. Four years after the c " an Ses m order to re-establish 
s revolution, confidence in C? exte ^ al a ccount equOi- i 
* Portugal's capacity to survive SS5l„ P e ? ture of 
i remains naturally enough d fiPfifids on incomes 

umrn arc in wnww uiiohu« uwiishu — 

difliruliu s" but which ore con- when U appeared (hat with the 
Aivicrcri tn he "technically aud Communist push for power the 
eiuinonm-flilv viable.” and also banks themselves might ho 
for the financing uf primary in- lurching towards a Soviet-style 


Telex: 88 69 50 — ARIEB G 
Tel: PBX 606 96 27 

Jimmy Burns 

Lisbon Correspondent 

last year. 

Paul Lendval 

Vienne Correspondent 



Financial Times Monday May ^ TSTg^ 


On a 

wide base 

As central bank for the Swedish savings 
banks, which are spread throughout the 
country and hold one third of all deposits, 
Sparbankernas Bank has in effect 1 ,500 
branch offices - giving us widespread 
contacts at all levels of the community. 

Both in cooperation with the savings banks 
and directly, we are steadily increasing 
our business with corporate clients as 
well as local authorities - a trend that is 
reflected in a marked rise of activity for 
our foreign and securities departments. 

Drawing on resources inside and outside 
Sweden, Sparbankernas Bank is notably 
expanding in the foreign operations field 
- participating extensively in international 
bond issues as well as providing short 
and medium-term financing abroad for 
our Swedish customers, in part with the 
affiliated Banque Nordeurope, Luxembourg, 
as intermediary. 

Assets equivalent to U.S. $8 billion put us 
fourth among the commercial bank groups 
in Sweden. With our wide domestic base 
and strong central organization, we are 
in the position to generate a considerable 
volume of international business. 

Sparbankernas Bank 

Street address: Brunkebergstorg 8 
MaM:S~105 34 Stockholm, Sweden 
Telephone: 08-762 10 00 
Telex: 19505 spbank s 
Cable: Unkmbank. SWIFT-.SP AB SE SS 

end of March compared with a pects depend on two factors, the credit policy but was designed Their placement margins, rise than has been usual in the 

SKr 4bn deficit for the corre- development of the payments to adapt to the changed liquidity narrowed last year by the high 1970s. Moreover, this increase 

sponding period a year earlier, balance with its accompanying situation in the money market discount rate, will be improved, was attributable solely to the 

The trade figures are token 'LT'tZS! ' 

as showing the effectiveness of ‘^raeehelf 6 * unprecedented 

William Dnliforce 

Nordic Correspondent 

last year’s krona devaluation. . , 

The gains, however, are being Sjncc Escal an <||yj|B nAnr 

made from a very low level SINGAPORE 

the order book! particularly ^ th£ UII,U ™ W,Ui - , ^ 

those of most engineering com- J™ h* e ,J?JLr? 0 ’ • “• " 

panies and the pulp and paper 

mills, are stiU insufficient to of _Je Sw edMi banks this year. - 

ensure a high level of capacity The PWuenta deficit and the P P | v ^ — | — . X 

utilisation. No professional fore- borrowing requirement f IttC M ATA 

caster has yet predicted that ba Y® beeD affects Jby °ne real \ # I I I 1-1 1 I l" j III | |V L J 1, 

industrial output, which has *B d one mathematical change. llkjllv/ JL V< lllviX AW V 

fallen for three years in sue mathematical development 
cession, will increase this year. ^ the reduction in the deficit 

estimates as a result of ^ - 

Decline statistical methods. The \ 7^ 

The domestic market remains OllU W O lllU W Cl V 

weak. Private consumption is ceded that it has over-estimated 
expected to fall for the s econ d the deficit in the past. The real 
year running, as is industrial develonment is the iinexDectedlv 

investment. The decline in curift imnrovmmt in the trade OFFSHORE market was rising 17 times from S$91m in in international markets and the suit of the concessionary tax 
demand for imports, which have balance. the mdmstay of banking activity 1971 to S$1.6bn at the end of lack of volatility in world in- rate. In addition, it was made 

been running In recent months if the current trend is main- in Singapore last year while January last The strength of terest rates which has affected clear that Asian dollar deposi- 

at a much lower level, has con- tained the result of this twin domestic hanking remained in this institution is shown by the the level of inter-bank activity, tors are not liable for estate 

tributed strongly to the improve- development would be to cut the dold rums. The excitement 1.36m. accounts it has attracted The strength of the offshore death duties, 

ment in the trade balance. After the 1978 payments deficit from lay in the Asian dollar market in a population of only 2.2m. market reflects several measures The authorities have often 

the 2.5 per cent decline in GNP the Krl6-17bn ($3.43.7bn) fore- which continued to grow both besides a high level of efficiency taken by the authorities to stated in public that they treat 

in 1977— the first since the war cast in the national budget to in breadth and depth. This in service which has attracted stimulate the market, as well as Hong Kong as a market comple- 

— most 1978 forecasts anticipate less than KrlObn. The net enhanced Singapore's image as man y depositors, this institution developments in the competing mentary to Singapore. Never- 

a slight growth of perhaps 1 per foreign borrowing requirement a financial centre. Domestic also r enjoys the ability to give centres of Hong Kong and theless the various incentives 

cent is assumed to be roughly in banking on the other hand faced tax ' free « ntere ^ depositors. Manila. Earlier on the authori- which have been offered in the 

The non-Socialist coalition line with the .payments deficit- relatively quiet times, with local The profit picture is expected ties had reduced the stamp duty last 18 months would appear to 

Government, which pushed in 1977 Sweden took up banks awash with funds and t0 1oq1 ? better tbis T®* 1 : T 13 ® 00 negotiable instruments from indicate that while the two 

through the August devaluation foreign loans of around Kr 21bn, running over each other to find au thorities are considering an ad valorem rate of 0.5 per markets may be complementary 

and accompanying deflationary of which the state was respon- takers from the manufacturing ? ltera tion tax-free cent to a maximum stamp fee the element of competition can- 

measures against the call for a sible for Kr 9.8bn. It was and other sectors. interest benefit enjoyed by de- of S$500. not be altogether ignored, 

more expansionary line from assumed at the beginning of this The Singapore economy grew P 0511 ® 1 * ° f ^ Post 0ffice Sav_ In July Iasi year the conces- The measures are geared 
the Social-Democrat Opposition, year that in 1978 the State by 7 8 per cent in 1977 The Banic sional rate of 10 per cent on towards more inter-bank activity 

is now scenting triumph for its would be borrowing roughly the financial sector played a simi- The businessman’s budget an- offshore income derived from in the Asian dollar market, 
economic policy. The abolition same abroad as in 1977. This ficant roi e in this growth with nt ? unced in March last should the activities of Asian currency development of a stronger pri- 

of the remaining 2 per cent assumption may no longer be a contribution of 14 per cent stimulate the economy and the units was extended to cover inary market for syndications in 

employers’ payroll tax from July correct even though the final to Gross Domestic Product As banka seem Ukel T t0 overcome more sendees provided by such Singapore, greater depth in the 

suggests that it is even ready to figure will depend on how the the statistical measure used in- tte P* 13 ®®” of ^ liquidity units. These services include secondary markets for the 

ease its deflationary line. The budget deficit is managed. eluded insurance companies “ d low demand - T* 1 ® 1 * advising and confirming of syndicated instruments, initia- 

current trend also indicates that In the revised budget the the stock market and oronartv s ' gns that the interest tunnel offshore letters of credit, place- tion of more advisory services 

it will succeed in holding price 1978-79 deficit has been in- ^ we u ^ business services the has turned upwards to their meats with non-Singapore bor- from Singapore and encourage- 

increases below the level at creased from Kr 32bn. to over ac tual contribution of the bank- benefiL rowers and the financing and ment of more transactions in 

which under the 1978 central Kr 40 bn. The inflow of foreign j ng sector was probably even Several of the top local banks re-financing of offshore third currencies other than the 

wages agreement the unions currency .into the reserves, higher since there were declines 3150 have extensive banking country transactions. Singapore dollar. For some 

could ask for compensation. which had risen from Kr 11 bn. j n b ot h stoc k mar |ret and operations in Malaysia. Malay- time it has been evident that 

The economic recovery will at the time of the devaluation in orivate nronertv develonment dan 855815 accounted for be- FvnPIlCPC Hong Kong has enjoyed a head- 

— ~ t Money suddIv Ml crew bv t ? e ? n 2? t0 38 ** cenL of ^ start on syndications; around 

1 10 i ner rant issf vear while tbeir total a 55 ® 15 - Th® strength Early this year banks were «0 per cent, of the Asian issues 


Offshore market 
shows the way 

b can hardly 

10 3 per cent last vear while tbeir total assels - T* 1 ® strength Early this year banks were «0 per cent, of the Asian issues 
M3, the broad definition, grew ? f domestic demand this year allowed to apportion their open- are believed to be syndicated 
by’ Hi ner cent. Of the 76 is ex P ected to generate in- ating expenses in proportion to there. 

commercial banks operating in Creased loa ? activrity 3115 **■}■*■ ! heir total Asian currency unit The big market makers in the 
Singapore at the end of 1977 sian ?? eratlons 318 expected to income. This is a strong stimu- Eurobond market — Salomon 
la C lJcally Incorooiated “ntr bute substantially to lant Co the offshore market since Brothers and Credit Suisse 
banks while the rest are foreign overa11 . local banks will be encouraged White Weld— have set up offices 

OnSte th! lnfluenceof ^ie “ “ ,n ““ Asl “ mar - to take oo more offshore loans, in Hons Kong. In Edition 

foreign banta onlie dom^ ^ 0 JZ™ r, „Tnnd. Volomi J” d0 , ing “ win beneat one merchant bank has reduced 
market remains strong. u to md™ M SK “ a ^ its operations “ S“Sopore. One 

' '.£?*. des f Lte s ° ft dema " d CONTINUED ON NEXT PAGE 


"When you’re planning any real estate activities in the Netherlands!, fee Westland/Utredit Hypofeeekbank can now help 
you more than ever wife project planning and finan ce 

As the leading mortgage bank in fee Netherlands we have once again shown a very healthy growth in operating result and 
profit during 1977. 

Our growth has even surprised us a little, so we can hardly wait for next year. 

1973 1974 1975 1976 1977 Balance sheet figures 

in millions of guilders 1663 185J2 224.4 244J. 326J. Issued capital (indudine subordinated. 

23661 3.209.5 

2,573.2 3.083.6 

137.7 1803 

6L7 12S.6 

23.6 41.4 

57.0 58.0 












in xtnlEons of guilders 

in numbers 

in guilders 

331 375 

9500 8300 

187 835 

U74 37,007 

2S76 3094 

10/0 1L70 

455 513 

15,100 19300 

688 840 

15342 6,437 

3435 45.77 

1230 16.00 





Balance sheet figures 

Issued capital (including subordinated, 
debentures) and reserves after appropriation 
of profit 
Borrowed funds 

Building and other advances 

Building projects in hand less instalments ' 


Property let 

Property participations 


Operating profit 
Provisions, etc 
Net group profit 
Profit retained 
Profit distributed 

Personnel and production 

Employees at end of year 

Mortgages concluded j 

Dwellings completed 

Industry premises completed, in sqjn. 

Amounts per f 50 share Mjjm 

Net group irafit 

•Dividcmf and interest T .. 

iranj i373to 1975 

Total assets of the commercial 
backing sector grew by 
S$12.8bn or 25 per cent in 
1976. The foreign banks were 
responsible for 83 per cent of 
the increase. At the the time 1 
they controlled 81 per cent of; 
total assets. 

In fact Citibank’s Singapore 
branrh was the largest Sing't- 
Jpnre bank in rerms of assets, 
j However, local banks seemed 
to enjoy higher profitability 
with Overseas-Chlnese Banking 
Corporation in the lead in 1976 
with SS22m. This compares 
favourably with Citibank’s 
profit of 5$15m. 


■ mm m m'm ^ 


Amsterdam, Sarphatisbaatl, 020*263131 

Despite the strong growth of 
the domestic economy last' 
year, local banks did not have| 
the best of times in profitability. 
With a highly liquid economy 
and loan demand growing at a 
slow pace, the banks were 
caught in an interest tunnel 
which was moving downwards. 
Gross domestic capital forma- 
tion rose by a niggardly 3 per 
cent last year compared to 10 
per cent in 1976. With largo 
deposit bases and manu- 
facturing investment sluggish, 

it was inevitable tbat the 
locally incorporated banks had 
uninspiring performances. 

The second tightening in the 
inter-bank market in the last 
two months of 1977 was elimin- 
ated when the Monetary 
Authority of Singapore intro- 
duced a new "swap" facility 
and injected S$l20m. into the 
market This has kept interest 
rates low and appears to fit the 
objective of making available 
cheap funds as an incentive for 
increased investment 

The authorities have also 
provided other incentives to 
boost economic expansion 
through monetary policy. While 
the manufacturing sector con- 
tributed less to economic growth 
last year, trade remains a pillar 
of the economy. The Monetary 
Authority reduced the re- 
discount rate for export bills 
from 4 to 3 per cent Cheaper 
financing for exporters has 
encouraged more activity and 
the gross value of bills re- 
discounted rose to Sll.lbn — 
more than twice the $S482m. of 
1976. Other schemes to help 
industry include ship financing 
and small industry finance 

A major non-bank financial 
institution with strong growth 
is the Post Office Savings Bank, 
which has seen its deposits 

There’s more to BCC than 

you see in. British High Streets 

156 offices in 32 

how rompkT at branch lCTei - n0 matter 

And you “ 

Contact us at fee address below. 

Bank of Credit and Commerce 



Lehin^r Germany (West). Ghana, . 

si&,h U «' CinI T r ®’ Korea, -Sou«hl. 

bwiiiL-iUnii, Lmtcd ArabEmiruis:, Sudan, " ' 

• 1 . ..»• 

Slow recovery forecast s t 

DEVELOPMENTS DURING the have to be sustained, however, August to Kr 18bn in the middle The decline in the short-term The banks have also been £™?. h . in the V 

first quarter of this year sug- if it is to help the non-Socialists of April, and fee growth in interest rate has not affected favoured by the abolition of me ri,» DOS its availnhil 6 ■ 

gest that the downturn in the in the 3979 general election, the budget deficit have had a long-term rates. The widening payroll tax aim the moderate o e t 

Swedish economy has probably The key question is whether the very powerful effect on the of the interest gap Is designed increase in staff saj an es result- p e 

hit bottom and is moving into a growth in export demand will banks’ liquidity since the -to switch funds from the short ing from the central wage seme* le^ei. . 

slow recovery. The favourable be strong enough for the export autumn. The Riksbank has to the long-term market and ment At the »“e __ ‘ Ilitv aft _. A 

signals have come from the industries to regain lost market twice raised its demands on the facilitate the financing of the foreign business, which nas retuni 1 v 

foreign trade front The order shares. The devaluation and a commercial and savings banks* budget deficit The increase In expanded swiftly over tne past aroppe« ■ Vi « t 

books of the export companies fairly moderate wages settle- liquidity ratios this year. the banks’ liquidity ratios is three years as a result oi 5* • 

have started to rise, although the ment have improved the rela- It has also reduced its intended to have a s imil ar Sweden's increased reliance on their a p ost I 

improvement does not extend to tlve cost position of Swedish discount rate twice, by half a purpose. foreign loans, will continue to renewed tn plaint that 

all branches. Even more positive companies but It remains to be point each time, to the present The sum of these measures is generate good earnings. their earnings ere not enough j* 

is the switch in the trade seen whether the improvement level of 7 per. cent In each case likely to he a boost to bank Last ye® r th e commercial to compensate i tne rate.: of , 

balance to a SKr 2bn surplus is large enough. it underlined that Its action profits in 1978 despite the banks increased their operating inflation. Tbls . '^ 0S P®tis ^ 

for the five-month period to the On the financial side pros- implied no change in its tight restrictions <m' their lending, profits by 4 per cent, a smaller would seem to oe ongnter. *■ 

^ f -ft* «_ 1 ...uu . 4 - Via - -- 1 : v..* j = a mL.s^ ' ' —2 hAPfl IlCllfll 111 fhfi “ ' ■. I 

■■ ■ 



Mnamaal- Times Monday 


way- 2 2-im 


oil ampanyis Royal Dutch. ; 
|||fijEr| Dutch tugboats tow ships 

across five worldoceans. 
8 WlS;l : ^ Dutchmen are building ■ 

ggg§g| harbours all over theworld. 
MWMWi Dutch Riendship airplanes 
are used for local transport all over tne world 

Hollandis too smahlbr the Dutch. 

Does it surprise youthen that a Dutch 
bank, the ABN Bank, has branches 
in almost every financial 
and trade centre in the world? 

Production platform m Denmark’s Dan field in the North Sea. 

Restrictions prove 

, YE *^ . wiu Probably bank earnings and to selective they will try something even rate of medium-term State 
. s “l a improvement in credit controls. more drastic next time. bonds, and this has tended to 

Pf n ‘* h bank carnmgs _ after Iast The must fundamental inter- According to this theory, switch the interest of those with 
jears recovery from a vention. as seen by the banks, supervision by the monopolies money to place from the banks 
disastrous 19.6, when falling is the ceiling on bank advances authorities will be used to intro- to the market in Government 
security values caused several (loan commitments) which has duce detailed controls of bank- paper for a short period 
banks to show losses. But the been in operation in one form j 0R costs and hence also invest- This situation may have wider 
mood of the banks is neverlhe- another for some 10 years, moots. It was in the spirit of implications for the conduct of 
less not particularly optimistic. authorities use the ceiling, this pessimistic scenario that monetary’ policy. There are 
They feel themselves hampered ^ c [j avcr the Past few years Handelsbatik wrote in its annual two reasons why interest rates 
by unnecessary restrictions " ns Deen aajuMeu upwards by report: " If banks are to per- are at their present levels. One 
introduced by the politicians ** J? er f ent a >' e * ,r> to ensure a form their tasks, it is absolutely is the necessity to finance the 
and are not too happy with the ^ ■ u- cre ?| 11 ’ essent ‘al that the legislation external deficit through sub- 

trend of earnings over the past „ n enacted in coming years does stamial private sector capital 

five years. S tIo nbt disru P [ the free, enterprise imports. The other is because 

Fur the big three commercial feel that it force? 'uSTto BtT J d 8 r * of ., thc baoking system the State is having to Mil large 

banks — Copenhagen Handels- behave inerearinsly lilt? hm£ a 2? 1 t0 fU ° Ctlon *? - the ^ of paper 10 *“■“* a 

bank Dan^ko Bank and Ptivai- Principles of open competition, borrowing requirement which 

SMSnS" tss s^'rsruj’SpS iswr9 wm ^ 

depreciation in 1977 were either money m the bond market. Seethe b * DKr3 - bn - ’ 

luui r than in 1973 or, in A potentially more dangerous monopolies authorities is that it F ifliviflitv 
Priva i bank's case, about 15 per intervent inn, again in the view ^ a face-savine formula for the “QUIUlty 

The Dutch are globe trotters. They 
have to be, if their small country is to mean 
anything in the world. They have been 
building, transporting and trading in 
foreign lands for centuries- 

So has the Algemene BankNeder 1 
Iandin40 countries on the five continents. 
Supporting local as well as international 
banking needs. They know the right 
people, the languages, the markets. due to 
their 150 years of international business 
and banking experience. 

*'* Every where the Algemene Bank 
Nederland can offer you the same serv ice 
based on the support of their head office 
experts in Amsterdam and their strong 

financial position. 

A pply for the brochure "The inter- 
national network of the Algemene Bank 

ABN Bank, Dept, C.B.K., 
Vijzelstraat 32, P.O.Box 669, Amsterdam, 
address: Genbank. 

London . Chief Office, BLThreadneedleStrcet, 
EC2P2HH.P.O. Box 503, 
telephone (01) 628 4272, telex SS73 66. 

Manchester. Pall Mall Court, 61, King Street, 
M2 4PD, telephone 1O6U 8329091, 
telex 668469. 


Mil i*- C 

i SSiSfiS ^! y.TSPn ft 3 **’ ^PuMic of Germany. Switzerland. Gibraltar. Hair. _ 

rent lusher. Bui iu the same u [ the banks, was the attempt politicians and that the banks The M2 money supply rose 
PA-runl total aocta have almost iu apply an incomes policy to win in fact be far freer t0 by 9.8 per cent last year and 
doubled. The trend on cam- the banks by means of limiting operate than at present. Only the Government and the central 
mg* is re Heeled in share prices. Hie spread between interest on wiI1 leU _ bank. without announcing 

from 215 to 126 and Privat- "'h™ deposits expanded rapid !j^ rates. Banks taking large nominal national income. Up to 

banken's from 225 to 134. notably in I9ia-<b. wnue short-term deposits on special March they were succeeding. 

Big > wmed in the net earn- advances were under terms from local authorities and M2 was only 7.5 per cent higher 

ings oi the banks are caused by ?• ,ncv, J ab j' ®arn- large C0r p 0ra tj ons a t high than in the corresponding 

the practice of bonking uh- * nss on ,f ai )£. deposit j n t erest rates dictated by tight month last year, 
realised gains or losses on . *” ess ;. 0n _ om , I-?* liquidity conditions were It is possible, however, that 

security holdings as they appear , *1 J,* £ ,e Y- - ai In Stowed to include the interest in order to meet the liquidity 

on the final trading day of each .2" ® rates on tiiese special deposits needs of the banks the 

year. Consequently the banks £L U5 . e r Jn 11,6 calculation of the spread, authorities will sell less debt nnl nmfliE Sn itllK Dan ish 0011 KS to maKe t) Otter T»4n ro « nta. no thpco cnopial nanPT Tn Mor/'Vi an,? Anril nnl. 

showed large net profits in 1975 

Interest rates on these special paper. In March and April only I 

and an even bigger drop in ,T f e ? f other potential sources deposits often rose to over 20 about a third of the budget 
earnings in 1976, but Privat- ..t*™** u.'imnmJ!! per “h*- A* a consequence deficit was financed by the sale 

bankea pointed out in this J n i P ° 6 Merest rates on advances were of Government honds, and the 

year's annual report that only ineir emcienc y ,n “ pn *- r ‘ ■ automatically pulled up. banks were able to reduce their 

in one of the past five years -j- • * ,• The Government at the end of debt to the central bank. Both 

have net earnings enabled the l_j£2!Sifltl0n l® 5 * y e *r proposed legislation the central bank and the Gov- 

bank to consolidate its financial ° ... setting a maximum interest eminent, however, say that 

position after allowing for infla- T* 1 * 1 legislation limiting the rates on deposits of the discount whatever monthly fluctuations 
tion. This is undoubtedly also spread bad other unrnminate rate plus 3 per cent, but the there may be in the monetary 
true for the other main banks, effects and It will probably be banks and savings banks instead financing of Government debt 
The banks attribute the dropped when the current legis- ma de a voluntary agreement there has been no change in 
deteriorating results partly to l 3 tion expires in March next limiting the deposit rates to the Uieir determination to finance 
the generally difficult economic year. But it will probably be discount rate (9 per cent) phis bulk of the borrowing re- 
situatinn. in which a large replaced by legislation placing 4 per cent and the Government quirement from the non-bank 
current balance of payments the banks, collectively and indi- dropped its own proposal. sector and to keep the growth 
deficit has forced the Govern- vidually. under the supervision While the banks thus averted of the money supply under con- 
ment to allow interest rates to °f the price-controlling mono- a new political intervention tinued tight control, 
rise In a very high level, pnlies authorities. This is where they-^nd especially the large • This policy objective also 
Interest rates today average the potential danger from the banks— now find themselves seems to be reflected in the, 
about 14 per cent on bank spread legislation really arises, facing a tricky liquidity situa- behaviour of the bond market 
advances and almost 17 per cent Some bankers feel that after tion. There is now a difference Following the agreement to 
on mortgage bonds. But they the politicians have tried once, of about three-and-a-half per limit bank deposit rates there 
attribute their difficulties also to and Failed, to implement an cent on the rate obtainable on was a small rise in bond prices, 
oolitical attempts to control incomes policy for the banks, bank deposits and the going but today they have fallen back 
^ to their level at the beginning 

of the year. The key influence 

Mri ,_ _ - on thinking in the bond market 

■J : #*s , : s:;- ■ # i ifsfcs »f: : : 





major American bank is 
believed to have decided last 
year that on balance its mer- 
chant bank would fare better in 
Hong Kong than In Singapore 
and has acted accordingly, 

But Singapore may well have 
the last laugh. The incentives 
offered recently will make for 
happier times for those who 
have decided to stay in Singa- 
pore. Indeed, a major market 
maker. First Boston, opened an 
office in Singapore late last year. 

The Asian dollar market has 
continued to grow since the end 
or 1977 and by April last, was 
standing at $U.S^2.8bn. During 
the first four months of this 
year the volume of fixed-rate 
Asian doftar certificates or depo- 
sit floated by 20 banks have 
exceeded ?U.S.450ra.. represent- 
ing a spurt iu issuing activity. 

In addition, USSJ20m. of 
floating rale certificates of 
deposit have been issued by 
seven, banks. . . 

Secondary market activity has picked up. with US$364m. 
of securities traded- This 

augurs well for the market and 
may indicate better things to 

In the foreign exchange mar- 
ket the average daily turnover 
is about US$Ibn., compared 
with US$340m. three years ago. 
Loans have tended to grow 
faster than deposits and there 
is an increasing reliance on 
external funds. 

Despite these elements of. 
growth the offshore market in 
Singapore is still one-tenth the 
size of the London market and- 
the volume of assets is only 
about 3 per cent of the total 
market in offshore dollars. 

The potential for growth re- 
mains good, communications 
are reliable, the economy re- 
mains on a growth path, political 
stability is in evidence, and 
Singapore remains committed 
to the development of the pro- 
fessional expertise and confi-. 
dence required to build up a 
strong international financial 
centre. Just a few weeks ago 
the Finance Minister announced 

the liberalisation of all ex- 
change controls. This gives an- 
other fillip to the market and 
reflects the confidence of the 
authorities in their ability to 
control domestic economic 
growth despite the fluctuating 
-pressures that may arise from 
the flows of “hot" money in 
and out of the monetary system. 
: 'Die inauguration of the off- 
shore market in Manila has not 
drawn business away. Most 
dealers take the view that 
Manila remains a relatively 
small market but there are in- 
dications that it could play an 
important role in the syndica- 
tion of loans for the ASEAN 

The possibility that the Hong 
Kong authorities might tax off- 
shore transactions could well 
make the Singapore market 
even more attractive. All in ail. 
bankers in Singapore should be 
laughing all the way to and 
from their offices. 

Poh Tfaian Ser 

Business Times, Singapore 

is the development on the 
current balance of payments. 

The externa] deficit was 
reduced to DKr lObn last year 
from DKr 11.6bn in 1976 and 
the Government intends to bring 
it down to DKr Tbn this year, 
but the first quarter trade 
figures were disappointing and 
even the optimists now expect 
a 1978 deficit of DKR 7.5bn-8bn. 

The current balance has been 
in deficit in every year since 
1963 and the net foreign debt 
of DKr 51bn at the end of 1977 
was equal to about 18 per cent 
of the Gross Domestic Product 
A steady reduction in the 
deficit each year is therefore 
regarded as absolutely essential 
by the Government and esven 
with unemployment running at 
almost 10 per cent it is still 
prepared to squeeze the 
economy in order to bring 
about the improvement The 
bond market is therefore con- 
vinced that there will be no 
relaxation of monetary policy, 
even if the squeeze on liquidity 
in some of the largest banks 
begins to hurt 

Hilary Barnes 

Copenhagen Corrcsp<mdent 

New way to Brazil 

Banco do Estado 
de Sao PauloSA 

2 Finch Lane 

the new.premises being inaugurated in the City of. 
London today, of the London Branch of BANESPA. " 

One of Brazil's largest banks, BANESPA is opening 
new offices in Paris on 25th May, and very shortly in 
Madrid and Mexico City. 

BANESPA has 450 agencies throughout Brazil, and 
foreign representation in Asuncion, Tokyo, New York.) 
Los Angeles, FranWurt and Cayman. 

We will be glad to advise you about the many 
business opportunities in the expanding Brazilian 

2 Finch Lane, London EC3V 3NE 
Telephone: {01) 623-2291 
Telex: 838839/887996 
Forex: 8814963/4 



r ' L 



Financial Times Monday May 22 «Tq 



Radical changes in structure 

YUGOSLAVIA'S complex bank- Republics and the two bank — bigger than many united powers. 

with them as organisers of refrain from such behaviour. 

Therefore the campaign for their internal banks, one ^ 

ing system has just undergone autonomous provinces has its banks, if Is a member of the Generally speaking united foreign operations' for their The same holds good for strengthening the production SC3 rI£ ity 

a radical reorganisation along own united banks while there United Belgrade Bank system banks will have two main fields member banks although there united banks. Here it is the workers' influence in the banks heti person . incre js jgjj 

the lines laid down in the 1974 are three other specialist united under the name Basic Invest- of activity: foreign banking is no obligation on a basic bank republics and provinces which which started several years ago mucn sea *, ttiejr appjj. 

constitution and subsequent banks based in Belgrade. ment Bank (Osnovna Invest- transactions on tneir members’ to be a member of a united want “their” united bank, is still being vigorously pursued pnate !' | n ,. L -,£ lpa ? les ' for 

legislation. These are the United Jugo- banka). behalf and the pooling of bank or to perform its foreign Although the Yugoslav market and will continue for some years their unium* wiui the 

establish new groupings of so- “ Beograd.” These cover Yugo- their member banks authorise sortia of banks have been en- the 160 basic banks! The philo- that it is wiser to have their p The weakest and the least st ’ntative now allows 

vailed "united” or "associated" slavia as a whole. One of the them. The kind of powers dele- visaged. sophy of the Yugoslav economic own financial institution of the deve i opcf f institutions are the a " d * ev . , e . banks 

banks which are in some former big banks, the Yugoslav gated by basic banks to the United banks operate with system is that there should be united bank type. - «wwaiied “ internal *• banks. sb ? wn _ !" °J*ntng 

respects heirs to the former Investment Bank of Belgrade, united bank they establish resources— in local or foreign a close link between production nttemnts are made Thi»v have been designed as the le^iiSnoas 6 Vi® 1 

hankino sv>{tem_ . .51 ~ 

larger banks but in others are did not become a united bank, differs from bank to bank, some currency— which member, banks and banking with the producers directly breaking the first link in the banking system. I,,*!? SJJSStIS?, pas * d ^ 

w different. It merged with another Bel- having very broad and others put at their disposal. All the having a decisive say in all 7* ho ? mEmSfilS SSr main task being to pool ? ar , ch foresee ?, ^nturesia 

- Encli of the country's six grade bank and is now a basic very restricted ddes.ted_rea.uree, a united bank gets matters and the banks providing ' a "-“ In toaether the resources of a 



S. F. R. Yugoslavia and S. It. Croatia have embarked or a new Five 
Year Pl.ut winch will buna a sharp upsurge in industrial and 
agricultural production, foreign trade and investments. 

Yugoslavia is an area of major economic importance — a large consumer 
m.irki-l based on an estimated growth of the economy in the years lo 

Investments in all major fields — from oil and gas exploration and 
production to petrochemical* and chemicals — from hydro to nuclear 
power flat ions — from a^ruuHure. tourism, communications to 

All ihcsc provide many opportunities, from trade to 

co-operation m industrial tvcii oology and joint ventures. Trading 
"'Hi Yuliana also provide.-, excel lent opportunities for trading with 
third world countries. 

Pnvvfdna Banka Zagreb is here to help you. As the leading medium 
and lung- term credit bank w arc the bank or the major Croatian 
c-mpunu^ and arc involved m the largest and must refined projects. 
(’on%cf|!ii.-ull\ . if you wish lo do business with Croatia, it will be iu 
.'•• nr ad*. ant. ice to consult iis ii,-..|. VVc arc the best people to Jell you 
about liU-mcAS uppurtuuitici in the booming Croatian economy. 


Head Office: -fltliMl Zr.grcb, Rackoga 6 
Gable: Privredbanka — Telex: YU 21-120 Pribz — Tel: 041/410-622 

itadhn: theexpertiseT They shoviidbe P<*;tion for Jbat Mutata togotber and ™ but sdpofi 

to the member banks on whose neither too big to be effectively ? 8*7™ tem ^ **' u forei „_- Iinjt P ,* he basic associations of 11181 T ^ IS b ? h re ? llJated ** * 
behalf they were borrowed, or managed by their members nor behind it ^ at f * ore f." .ROALsi for various separa !£. Acr '*, Thar Js expected 

used for financing agreed pro- too small for their lending banks, i.e. those from other labour -_j rtupr soon. These two pieces of legj*. 

jects with strict delineation of potential to be inadequate. Parts of the country, do not p«y aims like °™ r * lation. « IS h °P e *- will stimulate 

each member bank's share in the same attention to the needs coming cash flows problems in the interest of foreign banks in 

them. Prnnnrfinnc of 3,1 re ei on s where they individual BOALs. They are m Yugoslavia, which is eager- m 

A united bank must not keep A 1 l,UU3 operate but concentrate re- fact only quasi-banks, as they attract more foreign capital and 

bold of resources of the member ai, ais is easi „ ^ u, an sources wbW L, various do not perform many banking technology. 

!SS? i". 1 ?! : “ _™L _ U, “ “ 1” practice them stm are ^"LA 0 ., 1“,?.,. op " a "°r h„„e„r ™, te„ Aleksander Lebl 

settle their outstanding liabili- many d„ubts as .to the number quirements in their own region. 

StHDe 5?®®*,,* of bafiic banks 31111 si2 e. It There is some truth in this 
exceptionally se ems thar some of them are t00 tion The explanation 
take a short-term credit say to big and should be split into a Jf n r f - n n ut forward is that 
overcome a liquidity squeeze. No several smaller basic banks. has not 

matter what it does its members whereas some are of miniature the production sector has not 
are liable for its obligations ^^ 0 ^ 0 ” should 

according to the terms of their merge nf join bigger ones. In l J e 3Ctlv,ties of ^ 
agreemnt. Normally, a united establishing basic banks ambi- that the case ;. the argument 
bank has no funds of its own. tions of local communities have Soes on. it would not be possible 
and it does not deal with clients often been playing an import- t0 use r« ources mobilised in 
on its own behalf. ant role. Each town and com- °ne region tn finance projects in 

For the foreign partners of mune wants its own basic bank another without the consent nf 
Yugoslav banks united banks not only for prestige but also as the producers who would in 
will be the most conspicuous a vehicle to influence decisions most cases demand that the 
link in the banking system, of companies and banks — financial resources be used on 
They will mostly have contacts although in theory they should the spuL 

So far, however, very few 
companies have established 

Belgrade Correspondent 

devaluations last year and a 
third in February this year. l,i 




fjJi Established in ISC5 


Piazza F. Meda 4 
20121 Milano 



AS OF 3 1st 

DECEMBER. 1977: 



,7 Ti 

Total Deposits 

fin billions of Lire) 
2.541 3.253 


Capilal and Reserves 



+ 23% 

Total Assets 



+ 33% 




+ 50% 



LONDON— 52/54 Gracechurch Street, EC3V 0EH 
Telephones (01) -(323 9431/2 
Telex SS599S Popbanca 

with caution 

THE FINNISH economy may must have some motivation for the end of 1976. But most of 
at last be once more turning saving, otherwise their money the increase was due to the de- 
up wards. The improvement will be dissipated on unneces- valuations. Debt servicing costs 
will be small in the current sary consumption.” The Govern- rose to Fmks.4.6l>n., 12 pei 
year, and even that forecast is ment, he said, has taken various cent, of gross current receipts, 
hedged with reservations after steps to encourage savings. The This brings up the old ques- 
the premature predictions trouble is that these new tion of Finland's creditor. rthi- 
during the past three years of accounts are too complicated, ness. The most recem slate- 
an end to the economic depres- The other trouble is one that meuts from foreign bankers and 
sion. The Economic Division has existed formany years. The assessors indicate that Finland's 
of the Ministry of Finance Treasury is offering 5-year reputation is still good in ihe 
foresees a 0.5 per cent increase bonds at 9.5 per cent and 10- international credit market Ihe 
in the Gross Domestic Product year bonds at 10.5 per cent.. Industrial Bank of Finland re- 
this year. Modest though this both with interest and prin- eentiy floated a bond issue in 
may be. it i» better than the cipal tax free. The best that units of account which was 
0.i5 per cent contradiction in the commercial banks can do is origlnailv offered with a 75 per 
I9 !J- „ . „ S.25 per cent, plus certain cen t coupon and final] v 

Mr. Raimo Ilaskivi. managing premiums for 3fr-month marketed at 7 per cent It was 
director of the Industrial Bank- deposits. The bank savings are over-subsen bed 10 times 
of Finland, president of the also exempt from tax, However, ,^ ter a stubborn defence ot 
Helsinki Stock Exchange and n *o (sayings in lhe Flnnmark for ovcr lhrw 

chairman of tlie-'. .Finnish relation to the disposable ve - fh Bank nf Fin i., (ri 
Bankers' Association, puts it jncome of households) is still fi t d [h t 

this way: "We can take a more less than a half of what it was fJ!",,? 1 , 

optimistic outidok but we must two >' ea rs ago. 
not be over-optimistic. As long « 

as we feel that. the situation can v^UilipclillUlI 

belmproved we can take the Thg competition between the 
necessary action. We can create deposil hanks lhemselve5 an d 

Pbere psyCho, ° s,caJ atmos - with the Treasury is fierce. The 
P r« • j * ■ . ^ . commercial banks no longer 

expects further action from the lf mands , for J 11 '® 51 ™ 3111 credit. 

Government which has been 7^“ “ UC V? P ' 
dilatorj- in its rescue operations ,n F, "! aod ^d will be through- 
and shows no signs of changing out 1 chls year : for 

its attitude. At least a half of "° rkm S capital is still acute, 
what it has given in the form of The ™*“ber of bankruptcies in 
tax and other reliefs has been m edium -sized businesses seems 
taken back in the form of addi- 10 b « increasing. Indeed one 
tional charges on corporations. or two fairly large companies 
However, there are economists b 3 *? had to be taken over rem- 
who think thai the Govern- porarily by the commercia-l 
menfs plans must be given time banks, their main creditors, 
to work. . The latest gimmick in the 

There have been three mini- inter-bank competition is the 
devaluations or the Finnish offer of personal housing loans, 
mark in the past 12 months, which seems astonishing in view 
The basic interest rate has of the still tight money market, 
been lowered by 1 per cent. One commercial bank offered to 
twice, which is almost sensa- provide -the full financing for a 
tional in Finland where the dis- dwelling unit if the borrower 
count rate, as it is called, is had 20 per cent of the cost 
almost sacred. But the depre- price in a savings account. The 
ttations in the in the value of Bank of Finland stepped in and 
the mark have been more or sa id that 30 per cent- must be 
less forced by adjustments m the lowest limit The aim 
SKJS?* of the otter Scan- behind this liberal tending 

poli( . y * t0 ^ dientJ 

i f F, . nI “ a , dem f ! those who are given credit U> 

XCe d „ ts « KJ- “ „ 

SM "S rather than borrow „ 

reasons - estimated Fmks. 4.5bn. fa8Tm.) 

DpVilligQfinn thu year - Fmks. 3bn. 

-LSCVdlUdllUI] of this, it is thought will be 

The first two devaluations— raised abroad. To take the 
5.7 per cent, in April and 3 per other Fmks. 1.5bn. out of the 
cent, in August 1977— did not already pressed domestic financ- 
satisfy industry, especially the ing market will be a disturbing 
forest industry. Then, follow- factor. Apart from anything 
ing the change in the external else, eight industrial companies 
\aiue of the Norwegian krone have announced share issues 
this y ear * .*5* this year — last year there were 
22£ ? ark was de Z lue L^ done- This is more competition 

“ IS X- tojndal — 

foterest JS TSSun, J U \ ““ — 1 ^ 

— demanded and Sved a °P ^nki 

* 1 per cent reduction in ?°J* ^doubled by 

May this year. Ue eD ® last month compared 

Mr. Filip Petterson, chief four months of 

eneraj manager of the Bank 19 This is usually a reflection 
f Helsinki, said after the c '^ confidence that the cyclical 
reduction in interest rates from ^ changing. 

May- 1 had been announced: Fmks.3bn. (about £391m.) is 
"This is a decision that was n ° small sum to add to the net 
taken without consulting the foreign debt which stood at 
banks, which Is surprising since FmksJ27bn. at the end nf last 
deposit rates must be reduced y ea ri 22.5 per cent of the GDP 
from the same date. . . - Savers compared with 21 per cent at 

To operate 
without limits 
within the borders 
of the region, 
side-by-side with 
industry, business, 
and in import-export. X 

c ' //* 

Tfiur interest in your world. 


Public Company 

Central O ffice -T R ENTO- Italy-Via MantavaJ9 

! k 



■'< jtiv; 

• Financial Times Monday May 22 1978 


Impact of the new 

Bank Act 

banKs «ave a strong perform- 
ant't* in 1977 and in the 
first few months of this year 
have shown further strength 
in profitability. Reasonable 
asset growth combined with 
improving productivity gave 
them an average 20.8 per 
cent increase in profit last 
yvar. and they fared slightly 
better than that in the first 
quarter of 1978. Total assets 
increased by is per cent last 
year, led by continued strong 
growth in foreign assets, which 
gained 26 per cent, of which 
just over one-third was a result 
of favourable foreign currency 
translation gains resulting from 
the lower value of the Canadian 

While the strength in domes- 
tic asset growth has moderated 
from the high levels of the pre- 
vious two years, this was not 
unexpected in view of the slug- 
gishness of Canada’s economic 
recovery. Loan demand from 
both consumers and corpora- 
tions has moderated from the 
20 per cent rates of growth 
of the past, and at present is 
showing an increase of oMy 
14.6 per cent from a year ago. 


Although recent banking 
statistics indicate a substantial 
slowdown in business lending, 
the figures are deceiving 
because of the substantial 
increase in the issue by cor- 
porations of term preferred 
shares and income debentures 
to the banks instead of the use 
of normal hank lines of credit. 
These provide non-taxablo in- 
come from banks, allow the 
corporations to borrow at the 
lower interest rates and are pot 
classified as business loans out 
rather as security Tor money 
loaned. Income debentures are 
not new: they were used exten- 
sively immediately following 
the 1929 financial crisis. Fpr 
quite different reasons they 
have returned to favour 

.The interest on an income 
debenture is deemed to be a 
dividend in the hands of il* 
creditor, thus making its 
receipt tax free to any creditor, 
that is another corporatfon. 
resident in Canada. This has 
been defined in the Income Tax 
Act since 1955. After the 1029 
financial crisis many creditors 
were forced to convert their 
fixed interest loans into con- 
tingent interest loans rather 
than sec their debtors go bank- 
rupt. But the more recent 
income debentures involve 
financially strong borrowers, 
not weak ones. 

A term preferred snare is a 
more recent phenomenon that 
is not defined by tax law, but it 

has many attributes of debt. For turn the near banks will be 
example, the shares may be very forced to place on deposit at 
short-term in nature, having the Bank of Canada certain re- 
flexible dividend rates during serves on their chequing 
the term through paying divid- deposits, reserves which unlike 
ends at one-half the prime lend- their present reserves of high 
iog rate plus 1$ percentage quality commercial paper and 
points. They rank ahead of any Government bonds, will earn no 
other shares as far as dividends interest 

are concerned, have preference This would have resulted 
to net assets on liquidation and from the formation of the 
are redeemable at the creditor’s Canadian Payments Association, 
option at a price that reflects a new cheque clearing organis/.- 
the issue price plus accumulated tion which for the first time 
unpaid dividends. Such divid- would have given the near 
ends are also tax free in the banks a say in the way clearing 
hands of the creditor. is managed. However, the new 

The growing use of such Bank Act says, the near banks 
instruments has probably been do not have to join if they do 
one of the biggest changes in not wish, 
banking operations in the past 
year, but other major changes I ,f>nhv 
will be forthcoming as a result IJUUU J 
of a revised Bank Act that was Because of their fears, the 
tabled in Parliament last Thurs- trust companies plan to lobby 
day night — more than a year strongly and constantly both 
after it should have become law provincdally and federally once 
and two years after presentation the revised Bank Act becomes 
of a White Paper. The new Act law to get trust company legisla- 
wiU affect every major financial tion changed so that they can 
institution in the country, the compete on more equal terms 
banks themselves, . the near with other financial institutions, 
banks, such as trust and loan Revision of the Trust Companies 
companies, the credit unions. Act and the Loan Companies 
the caises populaires, sales Act will follow a year or so 
finance companies and the later, after the new Bank Act 
so-called suitcase bankers who Is law. The Trust Companies 
are representatives of foreign Association of Canada has 
banks, but not to the extent that already made a submission on 
bad been expected. the changes it would like to see 

Some changes proposed in the in those acts. For instance they 
White Paper that could have would like to be able to operate 
dealt the trust and. loon com- with the same leverage as the 
panies a blow were withdrawn banks, which at present operate 
in the final Act. It had been at 30 times capital, whereas 
feared that the struggle between trust companies are permitted 
the banks and the trust com- to operate at only 20 times 
panies for business would have capital, 
been conducted against a back- The strongest opposition to 
cloth of what many economists the proposed requirement that 
believe will be a bleak economic near banks should have reserves 
picture during the next five on deposit with the Bank of 
years. They believe it will be a Canada has been voiced by the 
period of' high unemployment credit unions and caisses popu- 
and high inflation, slow real iaires, which are outraged not 
economic growth, shorter only by the threat of losing 
business cycles with sluggish ex- some of their income but by 
pension and deeper troughs and the federal encroachment on 
a lack of strong Government provincial jurisdiction. They 
leadership. In such an eviron- obtain their charters from the 
ment trust companies expect to various provincial governments 
Face weaker demand for resi- but have been a growing force 
dential mortgages tthis has in the financial community in 
become very noticeable in the the past few years, to such an 
past few months) and more extent that they soon will go to 
competition from other mort- the European market to borrow 
gage suppliers, which will mean funds. 

possibly greater risks in their It is in the field of financial 
mortgage portfolios. leasing that the .most bitter 

The near . banks currently struggles have taken place. The 
offering cheque privileges to White Paper proposals would 
customers must maintain a clear- give the banks the right to 
ing balance with one of the engage in the financial leasing 
chartered banks. This clearing of major items. This would 
system has in the past been seriously affect saies of finance 
satisfactory to almost everyone and leasing companies since 
except .the federal Government their capita] costs are higher 
bureaucrats, who without any than those of the banks. The 
prompting from the near banks, banks at present are indirectly 
wanted to give them some say engaged in leasing in a small 
over the largely automatic pro- way through subsidiaries. The 
cess of cheque clearing. In re- freedom to gain direct entry 

into the field could, the leasing 
companies say, deal them 
crippling blow. 

A foreign bank- -will be 
allowed to set up banking sub- 
sidiaries with a maximum of 
five . Canadian branches — but 
only if Canadian banks get 
reciprocal treatment in the 
foreign bank’s home country. 
The total assets of foreign banks 
will not be permitted to exceed 
15 per cent, of total Canadian 
bank commercial lending, and 
they will be limited in asset 
size to 20 times their authorised 
capital. For the time being the 
Government intends to limit the 
total assets .of each foreign 
bank to Can$500m, This will be 
renewed at intervals." 

There are about 35 to 40 
foreign banks that borrow on 
the Canadian money market and 
they have total assets of 
Can$3.3bn. They currently 
operate under provincial gov- 
ernment legislation, but now 
will be federally controlled. 

Finance Department officials 
say the reciprocal treatment 
conditions will make it difficult 
for American banks from cer- 
tain States and Japanese and 
Swiss, banks to set up subsi- 
diaries in Canada - because of 
restrictions against Canadian 
banks in those States or coun- 
tries. However, British, West 
German and French banks, 
among those of many other 
countries, will be free to set up 
banking subsidiaries. 

Essentially, the new Act's pro- 
visions on foreign banks are in 
line with the tenor of the White 
Paper proposals. The latter were 
generally more welcomed by 
the foreign banks than by the 
Canadian banks but they were 
not happy -about the size and 
growth restrictions. 

By the time the next Bank 
Act review comes around, some 
observers believe Canadian 
banks will be controlling the 
commanding sectors of the 
economy in a way never before 
seen in North America. 

James Scott 


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tidpation of the autumn dp- 
lualiuu in 1977 there was a 
ain on the foreign exchange 
serves and the Bank , of Flu- 
id made twu drawings loiail- 

* U.S.S3u0m. on its standby 
-dlls with a consortium of 
►rth American banks, leaving 
Jflni. «m account. 

ft has since restored the 
md-bv credit position. In Feb- 
iry it nude a stand-by credit 
reenteni with a consortium 
h by Orion Bank of London 

• U.S.gH’OOm, On May 10 last it 
li-ludi'd another agreement for 

U.S.SlOOm. arranged by Scandin- 
avian Bank. Midland Bank and 
Nordic Bank, all in London. 
Thus the total stand-by bolster 
for the Foreign exchange reserve 
is hack to U.S-SrrfiOm. 

The Finnmark's extenml 
value is tied to a basket of 16 
currencies which have 
accounted for at lea<t one per 
cent, of the country's foreign 
tradp Tor the nast three years. 
-Visible exporr . earnings are 
showing a surplus for the first 
time in. 10 years. The current 
account deficit has been reduced 

dramatically. Bnt the benefit! 
of the past three mini-devalua- 
tions has been small so far for 
export-orientated industry. 

This is one question mark 
hanging over the future of the 
Finnmark. Another is what the 
Scandinavian countries will 
have to do or want to do about 
their exchange rates in the com-| 
ing months — and- that applies 
particularly to the Swedish 

Lance Key worth I 

Helsinki Correspondent j 

*" " t"- 

' -V 1 '; "v 

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• Regi ° naI Office. United Kingdom, Europe, Middle East and Africa: 12 Berkeley Square, Lyndon, WlX 6HU. Telephone 0I-49I-4200..Te!ex 28519. 

Antigua, Argentina, Australia, Eahamas. B^i,,, B'arbados, Belgium, Belize, Bermuda. Brazil, Canada, Cavman Islands. Channel Islands. Dominican 
Republic, Dubai, Egypt, France, OeiTnany, Greece; Grenada, Guyana, Haiti, Hong Kong, Indonesia, Ireland, Jamaica Jaoan Lebar ' * ' ' 

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; '■» 




Financial Times Monday May 22 1978 


Liberal changes 

What effect the combined mi- 
of the tax changes and 
more liberal banking 



branch openings by foreign 
banks in Hung Kong was pact 
- - brought in in 1966 to prevent the 

the Colony becoming over- regime will B *\* . ... 

banked and to stave off further Kong s reiatnc position n th 
bank failures lafter there had Asiadollar market way ns to 

already been several). be seen. Offshore loans »> 

By registering as “finance Hong Kong baidcs ^urrenHy 

HONG KONG has become the eminent often work closely able are the profits from net torium on foreign banks and could not operate current companies" as an alternative, stand at just 5 

nnnnart'il or the offshore bank- together. interest (i.e.. interest received opening full branches, subject accounts the so-called finance foreign banks could not use the but the ouik . 

._ thj{ it rtmbJnes The move to tax at least pari less related interest paid and to a number of conditions, one companies were leniently trea- word "bank m their title, thought to be to nonbank^or 
n< * world in thjt it com) banks . h earnings came related overhead expensesi being that oniy a single branch ted compared with full banks. That was tine for those such as. rowers outside the >• 

tax-haven status with a ack of ^ a , Qnd deal m e ore of % sur _ where the ro!e of the H ang is opened in the Colony A They were not subject to pro- say. Credit Lyonnais which whereas most of the loans in 

foreign exchange controls, and priset however. It left the Ron* bank is deemed to he number -of banks have already dential supervision by the were not called banks any- Singapore *sinn .. ■ 

offers accessibility and an international banks as alarmed - a cUve “ In effect thp test is applied for licences under the authorities or required to mala- way. but not so good for others market — roughly twice me .1 

excellent communications sys- a* they were nonplussed at first, whether bank emplovees in the Banking Ordinance (1964) tain minimum liquidity ratios, stuck with the name bank. In of Hong Kong is— represeni 

iem. Some of this appears to and there was talk of switching C olonv have undertaken work thnugh others appear content to In future they will have to meet foreign exchange markets, for rather incestuous inter bank 

hl , on the ooint of chan "in" loa " Portfolios wholesale and Dn ♦*' interest-bearina loan continue operating under similar requirements to those instance, where a name counts lending. 

b t on the point of «.nan„m e . r( ,, ot . ating t he Asiadollar portinn , ' ™«rest nearing 0 Ihe Deposit-Taking Companies Imposed on the banks although for a good deal, this was a point Meanwhile, the Hongkong 

now ever. i|f [hl . m in sj ngapore and the In tn J s sense «ong ^on^s ordinance (1976) and some are the concept of liquid assets may of more than academic interest and shanghai bank's attempt to 

It is not that Hong Kong is Eurodollar component in. say. proposed new statute law bought likely to opt for be redefined to make it suitable as a foreign bank in Hong Kong carve out a more international 

about to be eclipsed by other London. ’ appears to run counter to case operating under both. for both types of institution, in the guise of a finance com- ro ie for itself, through the 

Asian offshore banking venires 
such as Singapore or Manila. 
Bahrein in the Middie East, the 
Rahamas/Caymans. or even New 
York's projected offshore dollar 
rone — real though the challenge 
is from ail these in different 

The Colony seems bent oil 
reducing its own attractions by 
introducing a 17 per rent, lax 
on net inicroi received from 
offshore loans, which account 

q nrne Q f tUp uncertainty and * aW bas established ^ the m 05e nanus wmen remain ana ainerenr ratios appnea in pany luigru uut cujuy mo acquisition or oi per cem i»i 

alarm created bv rather P rovis ^ on of credit test in as deposit-taking or “ finance" each case. Capital ratios may prestige land custom) its name Marine Midland, looks likely to 

ambi-'uous official statements on dec ‘ din S where offshore earn- companies only — there are 213 also be introduced for both would normally gain for it. In take u a til raid-summer at least, 

the tax issue has now been dis- inss are laxab,e - of thera (compared to 34 local banks and other deposit-taking addition, locally incorporated aTt d possibly well into the 

polled however and the picture Case law in various parts nf banks and 104 bank representa- companies. finance companies were not autumn, before it gets all the 

is somewhat clearer too on' the the world says- that the test (of live offices)— will no longer be Probably the biggest anomaly able to do business against their necessary approvals from regu- 

bank.-' operating groundrules. where profits should be taxed) able to operate in such a ended by the present moves is parent companies’ worldwide i atory authorities in the U.S. 

Thai is not to say though that is the place where a credit is liberal climate as they have that whereby foreign banks assets as bank branches were, ^d from Marine Midland 

bankers contemplate the pro- ma de available to the borrower, in the past Aside from the fact with the word “bank” in their Now, however, banks operating shareholders, 

posed tax inpost with cqita- an d Hong Kon« has followed ^ were barred from i tak- title have been penalised. The in Hong Kong can register as 
miniiy. IE their opposition' to th , s precept The test is open in S deposits below HKSaO.OOO Government moratorium on new such. 

Anthony Rowley 

tin* measure fails they may even t0 
yet rethink part of their off- 
shore strategy on Hong Kong 

for a major proporlion of inter- 
national bank activity in Hong vis-a-vis other centres. 
Kong. The ml rale oT tax on 
>tich profits at present explains 
why Hong Kong enjoys the 
lion's share of loan syndications 
activity, at least in the Asia* 
dollar market. 

abuse, however, as in an 
extreme case a banker might 
claim he had actually agreed to. 
and made available, credit out- 
side Hong Kong — maybe while 
Dying over the Colony in an 

.. ,. „ . . aeroplane — and the loan was 

bnu-c Hong Kong, Fmancal taxaWe In Ho og Kong. 

Whether the courts would be 



Secretary. Mr. Philip Haddmi- 
Cave. announced the more 
Not surprisingly, the proposal stringent tax regime on offshore fooled is another matter. It is 
by the Hong Kong Government banking in his March budget, argued by Professor P. G. 
to spread the tax net on hank- and the subsequent announce- Willoughby of the Department 
ing a good deal wider than it ment of a more liberal policy of Law at Hongkong University 
is cast at present is encounter- towards foreign bank brunch that Ihe provision of credit test 
me a good deal of opposition upenings, a number of things is not so " artificial *’ as some 
from the international banking have emerged. of its critics claim. 

Limits maintained 

community in the Colony, and 
ihe enabling legislation on this 
hardly seems assured of a 
smooth passage through the 
Legislative Council. 

This negative — positive if 
viewed from the standpoint of 

ment aside. Hong Kong has 
made sonic furl her improve- 
ments to its hanking environ- 
ment recently by rationalising 
and liberalising il. 

NORWAY HAS seen a remark- pean currency “ snake '' and saw for oil or shipping investments The figures given in the 
able turnabout in economic the krone appreciate alongside but to meet the deficit on the revised 197S budget would put 

"mainland" account. At this Norway’s net foreign borrowing 
rapid point Mr. Per Kleppe. Finance requirement this year at around 

In contrast with 
policy, previous years, in which loans 

o,.:,,.. „.uirh .. . u. uauipwnai . L>urway j, economic policy, previous m wiiu.ii loans 

nrnhahlv be re"arded as bind- reach * d P r °P ort,ons wh,ch were Norwegian industries as their acknowledged that tbe foreign have exceeded predictions, this 

mu bv anv Hun" Kon° euurt worrymg even for a country costs soared relative to those of account set limits to what even is regarded as an upper limit 

.. rf . ... 'I . wilh big North Sea oil resources their rival foreign manufac- an oil-rich country could afford. The oil revenue has been more 

First, offshore loans which are It is clear." he says, from PO«ey lhis year. The rise in lhe 

=? ^~f S ZTZ ? £ S TS “TTS “ 

hook entries only, will not be 
subject to the proposed 17 per 

ceni tax on net interest **■* wi,h bi S Norlh Sea oil resources their rival foreign manufac- an oil-rich country could afford. The oil revenue has been more 

collectors — develop- ^ etei '. ed - Al hrs ‘ bankers had . r of interest under development. The (urers. accompanied by a totally in January the Government conservatively estimated - and 

- ” - ,°_ p . cared that such ' garaged f^ot concept but Lome re-elected Labour Government unforeseen setback to exports cut back bank lending as a first the export trend during the first 

loans where typically a U.S. ™ Tan has had to damn down on con- taBt H*J he Pleats deficit m0 ve to restrict consumer three months is said to have 

hanks German office might ® regard as a real source c „mniinn anrt lonHina anf t Ml .n ?j? shed through the Finance spending, and tightened HP been somewhat more favourable 

make a loan which was Funded f U T "L 3 , , ? M,nistr ^ af recast to reach a regulations. In February it than allowed for in' the budget 

in tho Singapore Asiadollar [L a^ual sour^ ? aoracUral ‘° make a ° attempt 10 1,m,t ,tS ma f! ,ve Kr 26 -3 b n. ($4.8bn.). devalued the krone by 8 per calculations. 

Meanwhile the Hongkong and n,ar ^ t and credited in America had raaller of facL « own spending. but! wLtors dStil!!’ rerit ag ^ nst ^ other “ Nevertheless the Bank of Nor- 

Shanuhai Bankin" Ci iron rat ion hooked in Hong Kong — Like the • neighbouring butmg factors were the delays currencies (but unlike tfte wav h a « that „ n i<«c 

H„ n? q>„ s ucnlr a | bHIk! ''™L U ln,# i" e Th: f JSSHSIT S w cdes^ii^Norwee 1 ^ CuWfO; '-SrStES S ." e,ies . not wl»hd»mw>. u*’ new deflationary measures 

nr <Tmplv’~the hank” a< <t is o'uld have precipitated an continuing debate^, it seems ment misjudged the duration of wh jch postponed the oil income, slapped on a price freeze and" sc t quickly and" Lhe terms^of 
known "in ifS. has ‘ in -odes of such inan pnrifolios- tT'h"a / a fi id d^ IT’S “I T't tnt 7£S$2L££Z <«»»“■« rate from . 

ccnbed Hong Kon-'s name , nor,; am Inp he banka loo-hn ^Und RevSnu" (A^ndmenO 1)16 "TK 6 ?.l pe L!! S «™ld flrow ro NKr lab.* before 

boldly on the international Hung Kong, 
hanking map hv its proposal to 

. . . . . export potential. Bur the _ 

^i _. ,S . pa f sed _ n . orde . r , l°_ glve Norwegians, banking on the J?Q 

Last month in connection oil revenue is large enough 
with a revised budget plan it t0 reverse rL Another factor 
4 . ^ r ^ introduced tax and insurance to be reckoned with is a pos- 

By the end of 1977 tbe net contribution changes designed s ibie speed-up in the rate of oil 

foreign debt had reached to take Kr. lbn out of purebas- investments (at least half of 

Kr 8°bn and revised forecasts ing power this year and reduce which would fall on Statoil. the 

in a his wav. ihu, ihe Hm„ »nt rale or .1 . I»»« Jtnta i .nd flu..|.b.nto coovpc.e fuiremploymCTT.nd' pr'ocidTi hljb*,' Kr “oilbnTV'eS iw tadgen" f„“e.sed‘ e-cpKon “ now 

Kong liovernmenl should hove ..f 3n d S"! rules ’ rise io reel incomes. At the of this year-about half GNP. by the same amount to Kr TbtL o"anoed resute in oew d^ 

liberalised its policy or fure.'an l!Dned between Hun*, hung and riddled with anomalies. same !inie for political rather Even more significant, the Further deflationary measures coveries.' Moreover the Bank 

hank branch openings around «t her centres. The Hong Kong Government than for financial, reasons, larger part of this year's foreign have been promised in the^ert ofrNorwav has^^n b^rrowl^ 

lhe same nmo Bank and Gnv Whal will be specifically lax- has ended Us 1'2-year mora- Norway remained in the Euro- borrowing would he heeded not budget tehns sn thar the 

rullins over of these debt* 
should keep foreign banker 

For Norway's private bankers 
the short-term prospects are not 
i too bright. Last year 
commercial banks saw a roa . 
sidcrable expansion .in the 
volume of business but reported 
lower earnings, partly as J 
result of shipping loans written 
off. Sume banks had to reduce 
their dividend payments. 
Several had lo write up ih e 
value lo- reduce their dividend 
payments. Several had to write 
up the value of property and 
other assets on their balance 
sheets in order to bring their 
equity figures up to the legal 


Although lhe Norwegian hanks 
are nor so heavily committed to 
the shipowners as are one or two 
foreign banks, some of then 
have already made further pro- 
visions for losses on their ship- 
ping accounts this year. Th e 
private banks are subject to veiy 
tight credit control by the 
authorities and the effect of the 
Government's latest deflationary 
action has been to reduce the 
framework for increased lending 
by the private banking sector 
this year from the NKr 8^bn 
indicated in the original budget 
to NKr 5.9bn. 

The commercial banks are 
also having to adapt this year 
to the “Democratisation " Act, 
which is designed to increase 
public control over their opera- 
tions by including on their 
boards and representative count 
cils members appointed by 
Parliament or. in tbe case of the 
provincial banks, by county 
councils. This change may have 
little effect on their day-to-day 
management but could influence 
their ability to raise equity 

Last year tbe Government and 
the Bank of Norway appeared 
to recognise that they were 
putting undue pressure on the 
private banks. In December 
they announced steps to ease 
their rigid interest rate control, 
an obstacle to the development 
of the capital market which had 
been criticised by the OECD. 
They abandoned control of in- 
terest rates by 1 per cent. 

A minor interest rate war 
broke out when a savings bank 
in Stavanger raised its deposit 
rates more than recommended 
by tbe savings banks' association 
and a local commercial bank 
folowed suit, causing some con- 
fusion among bankers who saw 
their profit margins further 
threatened. The outcome of this 
limited experiment in greater 
freedom is still uncertain. 

William Dullforce 

' Nordic Correspondent 

. 1 ' 



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After the retreat from 

THE Government's mite Paper 
on industrial democracy to be 
published to-morrow, will pro- 
vide a significant reassurance 
for those people who believe 
tftat Britain only changes its 
habits and traditions slowly, 
never with the speed of a revo- 

Tlie people who will be especi- 
ally encouraged on this occasion 
will tango from politicians and 
industrialists to trade union 
leaders and shop stewards, 
many of whom for a variety of 
reasons disliked the proposals 
for worker directors proposed 
m Jaouary last year by the 
Bullock Committee of Inquiry 
on industrial democracy. Their 
wish for only slow change in 
the way that British industry is 
run — or in some cases their 
preference for no change at all 
— has been met by the Govern- 
ment. The White Paper only 
discusses ideas for legislation 
on consultative procedures 
which move gradually towards 
worked directors. 

Yet juat two yeare ago in the 
summer of 1976 it did seem for 
a time as if Britain was about 
to revolutionise its company 
structures, trade union tradi- 
tions. and industrial relations 
practices by rapidly - importing 
trade union representatives 
into the boardrooms of large 
companies. This would not 
only have challenged the 
adversary traditions of the 
country’s shop steward-based 
labour relations but would also 
have overturned the accepted 
supremacy of. the ' shareholder 
and the company annual meet- 
ing and faced both manage- 
ments and unions with changes 
of role which they could not 
have efficiently fulfilled. 

At that time, two years ago, 
the Bullock Committee was 
drafting its report to give trade 
union and shareholder repre- 
sentatives equal numbers of 

BY JOHN ELLIOTT, Industrial Editor 

seats In a boardroom, along 
with a smaller “ independents " 
group, under a formula known 
as "2x + y." Three industria- 
lists on the committee, while 
objecting to this, prepared their 
own alternative path to worker 
directors. And while the 
Labour Government was await- 
mg the Bullock Report, The 
Conservatives and Liberals had 
their own ideas for how ro 
introduce worker directors 
which were also being 
encouraged by the EEC. There 
was thus no apparent opposition 
to Britain moving quite rapidly 
towards worker directors in 
some form or other. 

By the end of 1976 the mood 
had changed and the publica- 
tion of the Bullock Report 
triggered a massive campaign of 
opposition from industrialists 
who were worried both by the 
changes in the balance of power 
involved and by the practical 
implications. Politicians became 
embarrassed by the subject, and 
the hitherto somewhat silent 
opposition within the trade 
union movement also became 
more vocal 

Major voice 

The main factor which caused 
this change was a general mood 
in the country against legislation 
providing trade unions with a 
major voice in the country’s 
institutions. There was resent- 
ment over the gains the unions 
had received within the social 
contract This was increased by 
fear of the growth of closed 
shops and by a "White Paper 
proposing union influence over 
pension funds. Then, in the 
summer of 1977, the anti-onion 
feeling was sharpened by che 
Gnrawick dispute. 

These developments generated 
a victory chorus from indus- 
trialists and others to the 

general effect that “Bullock is 
dead." it was almost as if 
people believed that the poli- 
tical cross currents of late 1976 
and 1977 had submerged the 
issue. But many politicians and 
leaders of the Confederation of 
British Industry, among others, 
know that such a view is short- 
sighted and that, irrespective of 
the immediate fate of the 
Bullock proposals, companies 
(and trade unions) gradually 
must come to terms with the 
fact that employees want a 
greater say over both short-term 
shop-floor issues and over longer 
term boardroom-level decisions 
that may affect their livelihoods 
in the years ahead. 

There has therefore been 
quite a lot of progress in indi- 
vidual industries and com- 
panies during the past couple 
of years, although this progress 
has often been obscured by the 
sound of the Bullock battle. 

In the nationalised industries 
the main development has been 
the Introduction of a union- 
based worker director system 
in the Post Office. For a two- 
year experimental period, 
management and unions each 
have the same number of seats, 
along with a smaller group of 
independents, on the top cor- 
poration "' Board. • Similar 
arrangements are planned for 
lower level regional and- local' 
advisory Boards, with the ulti- 
mate target of some 1,800 union 
representatives being involved. 
Meanwhile the British Steel 
Corporation, which pioneered 
relatively weak worker direc- 
tors at lower levels some ten 
years ago is now discussing an 
idea backed by the Government 
for the unions to have about a 
third of the seats on its top 

In the private sector many of 
the initiatives have been com- 
ing from managements anxious 

to improve the efficiency of their 
business, rather than because 
of trade union or employee 
demands. The main emphasis for 
the past two years has been on 
improving basic communication 
and consultation methods. This 
has been encouraged by the 
Confederation of British 

Employees' ambitions to have 
a greater say in the way their 
places of work are run are rarely 
expressed in a positive form. 
But the fact that they exist is 
demonstrated by events such as 
sit-ins and other forms of oppo- 
sition to redundancies and by 
shop stewards becoming in- 

as. the community and the 
customer through general legis- 
lation on employment condi- 
tions, environmental health, and 
fair trading practices. But the 
idea of statutorily recognising 
their rights within company law 
has been backed to varying 
degrees by successive govem- 

4 Q The White Paper spans ail interests but will please no one 
entirely. ... It goes considerably further than the policies of the 
Conseryative Party and Liberal Party. . . . But it is a skilful compromise 
that maintains many of the principles of the Bullock Report while 
meeting some of the points of the objectors. 9 9 

Industry which sees voluntary 
progress as a major weapon in 
its argument that there is no 
need for legislation. - 

But the idea has also captured 
the imagination of individual 
industrialists (some of whom 
are also interested in involving 
employees through profit shar- 
ing schemes), aside from the 
genera) anti-Bullock campa'gn. 
Sir Arnold Weinstock, GEC 
managing director, for example, 
told his top executives a couple 
of years ago that employees 
u have knowledge and 
experience and they have much 
to contribute." 

Some companies have been 
busy extending existing 
arrangements: ICI for example 
has added consultative commit- 
tees on investment plans to 
methods it has been running 
for nearly 50 years. But there 
have also been problems, with 
British Leyiand's participation 
committees being hit by some 
union opposition. 

rolved in the operation of 
health and safety legislation on 
the shop floor. 

The problem is how to turn 
these somewhat negative 
factors into a constructive form 
of participation that will meet 
several needs and interests. One 
of the most generally accepted 
of tbese needs is to increase 
employee .involvement so that 
companies work more har- 
moniously and efficiently. The 
second, which is more contro- 
versial, involves recognising 
that employees as well as share- 
holders should have their 
interests statutorily recognised 
within a company. Tbis involves 
expanding the ambit of com- 
pany law, which has tradi- 
tionally only established the 
rights of shareholders and the 
responsibilities of companies, 
to include the interests of em- 

Up to now employees have 
been safeguarded along with 
other “outside" inrerests such 

ments in Britain during (he 

The third and most controver- 
sial point that has to be met 
is how to channel the 
employees’ influence within an 
industrial relations system that 
is generally based on trade 
unions, but at a time when 
there are demands for the rights 
and Interests of non-unionists to 
be safeguarded. On the one 
hand there is the potential 
advantage that shop stewards 
and unions may gradually 
shoulder more positive and con- 
structive responsibilities if any 
participation system is based on 
thein — and that they may shun 
it and make it irrelevant if it is 
noL On the other band indus- 
trialists have a natural concern 
that identifiable groups of 
employees (middle managers 
for example), who may not be 
in a union, should not be 
excluded. There are also 
libertarian arguments fur 

making sure that every, 
individual has a right to a say. 

These issues have been at the 
heart of the debate since the 
Bullock Report was published, 
and the White Paper seeks to 
find a way of accommodating 
them. First there is the ques- 
tion of whether there should be 
worker directors at all, with 
some industrialists arguing they 
would stifle efficient manage- 
ment and with some unions 
saying they would be incompat- 
ible with traditional collective 
bargaining — Mr. Frank Chappie 
of the Electricians said last 
week that his union was power- 
ful enough already. This leads 
industrialists to prefer com- 
munication and consultation 
exercises, rather than actual 
participation in decisiun making 
at boardroom level, while the 
trade union opponents upt for 
extended collective bargaining 
with uniuns being given a right 
to negotiate outside the board- 
room on top level company 
decisions — a notion that could 
impede management far more 
than a worker director system. 

Next, if there are to be 
worker directors, the TUC wants 
“parity” of- representation 
between shareholders and 
employees. This idea drives 
industrialists into outright oppo- 
sition to the whole concept. The 
TUC also wants any system 
based on a trade union “single 
channel” system that pays no 
attention to non unionists — a 
claim that alienates the support 
of many politicians and indus- 

Mr. Callaghan is now thought 
to be happy with the compro- 
mises that have emerged. He 
will be directly involved in 
launching the White Paper and 
in urging that there should be 
further debate (rather than 
politically embarrassing rows) 
over many of the “green edges" 

of the White Paper. The Gov- 
ernment will also stress that its 
proposals for legislation are 
only fall-back ideas and do not 
prevent any company agreeing 
different arrangements with its 

The White Paper spans all 
interests but will please no-one 
entirely. Ir does not go far 
enough on either worker direc- 
tors or extended collective 
bargaining to fulfil the dreams 
of either of the two union 
camps. On the other hand it 
goes too far with statutory 
rights based on the unions to 
please industrialists. 


It proposes a statutory obligor 
tion on companies to consult 
with trade union representa- 
tives, before decisions arc made, 
at any relevant level of a com- 
pany or group. Then, after a 
waiting period of three or four 
years, union representatives can 
build on this consultative basis 
by claiming up to one-third of 
the scats on a company's policy 
Board (with non-unionists hav- 
ing some rights of appeal). This 
Board, while forming the top 
level of a two-tier Board strut-, 
ture. will have positive powers 
of polity initiation as opposed 
to the merely supervisory role 
of top-tier Boards in Germany. 

This goes considerably further 
than the policies of the Con- 
servative Parly which wants 
voluntary progress with a 
code of practice and only 
voluntary worker director 
experiments and the Liberal 
Party, which like the 
Conservatives, objects to the 
single-channel union only con- 
cept. But the White Paper is a 
skilful compromise that main- 
tains many of the principles of 
the Bullock Report while meet- 
ing some of the points made by 

Letters to the Editor 

Monopoly and 

Front Mr. Charles Farrell 

on tbe figures quoted, the" odds 
are in fact two to one against, not 
50/50. because you can be sure 
that those who withdrew knew 
that their Fate was already sealed 
and furthermore your correspon- 
ds ^ hem docs not take into account 

l?. r ” C J5 “In ,he much sre a,er effect bn com- 

EJTiS If panies * h0 wouJd ,ike W “erge 

> our issue of Jilsj 11 there is far t nr thpir nrpsipr pfficiehcv- but 

“I.* n^hlSffS 11 wnrlme m ,he face of,he presenUttitudn 
t? tJ" ,ih it "SL the Monopolies Commission 

Stotiil! 1 IF * h p b R rS q i ri w and toe general uncertainty. 

m, merger to IhW «4? u f 'V‘ ter "V* 1 - 

bad particular knowledge of this The Monopolies Commission * 
:asc as the then chief executive criteria and procedures should be- 
of British Sldac. I draw your more closely defined Vn-tenns of 
mention to some of the less law and companies should he able 
satisfactory aspects of Mono- to approach the Commission as 
polios Commission procedure, as 'hey would a court of law in the 
l aliened ibis particular case, knowledge of the law and in the 
BSL was informed, in advance tight of this, be able to hear the 
if iu successful and mutually evidence against them and o 
igreed hid for TPL. by the role- cross-examine. Justice would 
rant department of the Board (ben n be done and be seen to be 
if Trade. Ihai tin* merger would done. 
rn»l. as far as the department Charles Farrell. 

■on Id tell, be referred to the Dover Street. IF!. 

Monopolies Coni mission, lit was 

iftnr all the two smaller manu- 

p adurt?rs who wished to join 

(SSSLmm ™ Non-executive 

lepart mental assurance was a 

rery Ann one and Riven after mreCtOFS 

onsitlerable study of the case. 

The reference to the Comm is- From the Managing Director. 
linn was in fact made in the Ores litfrnMlibnn!. 

If st fnrmishi of office of the sir, — l would like to comment 
icw Heath regime in June. 1970. about the role of non executive 
he relevant committee chaired directors in British industry, in- 
ly a junior minister when spired by Stewart Fleming’s 
nmpetiiion *‘al all casts” was article on Non-Executive Direc- 
[II (he rage, regardless of tors in U.S. Corporations (May 
mins*. rial logic. 15 ), 

The major ammunition for the has been relatively rare to 
Committees reference of the fj n( j Boards made up of a 
nerger to the Mononoues Lom- ma j 0n -ty of non-executive dircc- 
m*>ion wag produced bv one or tors j,cro in Britain. In banking 
wo major custome.-a OF oin aQd insurance, however, they are 
rnmpanjes who were subjected reasonably well established, 
n qn 'atense lobbyinB ceraP* PJJ pr;lct j ce of haring one or 

iy reft am \ addition two non-executive directors is 

3 nd would have not a very satisfactory way of 
| c ° rn :’fi!, t f P r Am petition from keeping an eye on the day-to-day. 
seed ' evc J? Vomnanv This management. These one or two 
be merged co P . • will generally have been invited 

lSP eet was ne'er to »eb«tot %Q - oln the Board by the very 

ny d management upon whom they 

.ommission. should be keeping an eye. The 

The “Star Ctamberi* syxt wme aamPS crop op depressing!? 
imployed by the commwsion ofteo implying that they some- 
neans that the company in ti ne. hiow ^ sea j of approval 
lock fand that is how »t ;«**■» ™ of tfie c ^ y establishment The 
lot allowed to know wnat evi CJty uitimsri native 

VSfcA. * St* way * its “ old boy , 

Ss° and much m ' JtE cross- The majorlly of British non* 
•mine executive, directors are drawn- 

ixamine. . at »he from banking, accountancy or 

The concept of looking attne ^ fw of th<jm are 

)K market share bv »^ e invited to join beeau<e they hove 

0 * ^ « X g /* a ati o nlti trade relative outside industrial 

ealttles of international irauc eTperletw ^ :Tbcrft oxnp . 

f t® fitf's membership tfons » h °wever. and Reed Inter- 
xtent byjhe UK 5 menioem***- nat1onal has invited senior 

,f the EEC. executives from ICI and Shell to 

The effect of the Monopolies Board, to help it through 

:ora mission hanoa the me^er jts present difficulties. 
tta to P“ s k it out In my view noa-exccutlve 

rhieh very marly forced « o directors AoaW b e a majority 

,f business. dis- ot the Board. They should have 

eriod of time ted to o as their main task the monitor- 
ippearance of r~T L through lag of the company manage- 
icndcnt public comp chemtaue meat’s performance, either on 
ts takeover by Union cnemique ^ -ta 5 hoWerai or 

lelfie- , ., the staff. (The day cannot be far 

The present -system seldom- « off w bBn ft becomes customary 
ver &eeilvcly examines, and t0 j, ave a non-executive director 
ever breaks up, mtistiflg m ono^ or two elected by the work force 
oly situations, many of 8je« though not, I hope, ^pointed by 
ignificance. but coaMMMBH ^ unions), 
ttrntion t J fi .f^ h i f r D a ^ D fLive H nonexecutive directors are 
roblem whteh wi *e prespe^^ t0 d0 fteir ^ properly there 
tersers between -5 Sd « ust ** & 

anics whichhave tOMrenonea g{ appointments they ran 

\ the Department of Trade ana j wou ji suggest a maxl- 

adtwtry and can gWMjjj Silm of three. That way they 
resent legislati o n be prevented. real , y ^ concentrate th«r 
■he effect is attention, and they should be 

eaithy preservation of the status rewafd ^ accordingly- X 
UO. „ ^ encouraged to see that British 

in savins that there is a 50/ SO oxyqen euvlsases a more po* 
bance o? V merger j being tive role.for its non executive 
rJSnted. vour correspondent is. directors and as a consequence is 
^briieve.' misinterpreting the pa^ng them highbr fees. 

K 'Sf&lSSLFSi 


through tbe political minefield 
as well as a -sympathetic voice. 
I would strongly recommend 
those MPs on both sides ol tbe 
House who have some industrial 
experience. Unfortunately, they 
are all too few at the moment. 
M. I. Webb-Bowen. 

35-39 Maddox Street Wl. 

in Kent 

From tlie Chairman, 

Education Committee, 

Kent Gowitu Council. 

Sir,— 1 aui afraid that Dr. 
Bonnio in uis ieucr (May 6) 
has got tbe wrong ena of tiie 
stick about the Thames-side 
system of education as it is 
operated in Gravesham (Kent). 
As we expialn carefully in the 
booklets sent lo all parents, 
pupils enter a high school (not 
a middle school) al age 11, and 
at age 13 by a process of guided 
parental choice those who wish 
and seem fitted to continue their 
education to tbe age of 18 along 
more academic tines have tbe 
opportunity to transfer to an 
upper school (not a comprehen- 
sive school) for a five year 
course leading to GCE Advanced 
level. Overall in recent years 
about 24 per cent, of pupils in 
tbe Gravesham Divirion have 
been admitted at age 13 to upper 
schools in this way. Pupils 
remaining in the high schools 
are able to undertake ** 0 " 
level and/or CSE courses and 
there is further provision for 
tranfer to an upper school or to 
a college of further education 
at age 16 if that is apropriate. 

I find it hard to understand 
Dr. Bonnin’s nomenclature, 
since he talks about middle and 
comprehensive schools in an 
area where there are at present 
none except for two denomina- 
tional .schools, and I think- it 
important that the factual posi- 
tion should be plainly stated. 

Perhaps I might add that on 
a consultation exercise recently 
undertaken the vast majority of 
parents who responded (2J2S6 
out of 8.133) decided that tbey 
woiild prefer the status quo 
rather than a change to a com- 
pletely comprehensive system. 

. Until- the passing of the 1976 
Act 'the: Kent Authority’s basic 
approach was to try to follow 
local opinion and to bear in 
mind educational considerations 
as to the type of education 
offered In an area. Within the 
constraints of that Act - the 
Authority has submitted modifi- 
cations . to the Thames-side 
scheme to make parental choice 
the dominant factor at the age 
of 13, It remains to be seen 
what tee Secretary of State will 

A. J. L. Barnes. 

Springfield, Maidstone, Kent. 

or denigrate the talents its 
people possess. They are still 
here, but some of tbe priorities 
of recent years have caused 
bewilderment Perhaps it is for 
thi;7 reason that the process plant 
industry has not shouted enough 
about its capabilities and 
achievements. We shall be 
reminding people of them. 

It is tempting for the British 
user to bny plant from foreigners 
who do not fail to claim their 
strengths, and we must take it 
as s compliment that they set 
great store by their successes in 
our country. But often they 
resort to uneconomic prices, nr 
those which we can only con 
elude are in some way assisted, 
to attain their objectives. 

The process plant industry *s 
not 'afraid of fair international 
competition but asks its clients 
to think twice about the wisdom 
of short-term expediency and 
recognise the value of tbe huge 
resources of experience, craft- 
manship and imagination we 
have at home. We have them 
all. and want to keep British in- 
dustry. its management and 
labour intact 

Best results come from en- 
couragement success. and 
reward. Given these, there is 
nowhere that will react better. 
Harry Hornsby. 

197. Kntefetsbridge, SW7. 


EEC Finance Ministers meet 

Labour Party -TUC Liaison Com- 
mittee meet Houre of Commons. 

Talks resume in London on new 
Anglo-Malayrian air service agree- 

Fourth session of UN Commis- 
sion on Transnational Corpora- 
tion continues. Vienna. 

TUC -Finance and General 
Purposes Committee meets. 

First meeting of joint planning 
sub-committee of senior British 
Steel Corporation and union 

Economic mission from 
Japanese Federation of Economic 
Organisations (Keidanren) arrives 
in. Vietnam.'.. ; ^ 

Department of Industry issues 
first Business Statistics Office 

Today’s Events 

National Union of MtneworkeTs’ 
Yorkshire area executive meets. 

Dr. Conor Cruise O’Brien, 
editor-in-chief. Tbe Observer, is 
guest speaker at Advertising 
Association annual meeting lunch. 
Savoy Hotel, WC2. 

Coal Industry Society annual 
meeting. Hyde Park Hotel. SW1, 
U.4o am, followed by lunch at 
which Viscount Ward of Witley, 
chairman, Coalite and Chemical 
Products, is guest speaker. 

Union of Post Office Workers’ 
conference opens, Blackpool 
(until May 26). 

International Association of 
Airport and Seaport Police con- 

ference. Tower HoieL El. 
Speakers include Mr. William 
White law, deputy Opposition 

National Union of Licensed 
Victuallers’ annual conference 
opens. Brighton (until May 25). 

House of Commons: Opposition 
censure debate on Forces’ pay. 
Financial Assistance Cor Industry 
(Increases of Limit) Order. 

House of Lords: Debates on 
North Sea oil .policies; and on 
refugees in the UK. - 

Preliminary estimate of gross 
domestic product based on output 

data (first quarter). Turnover of 
motor trades (first quarter). 

See Week’s Financial Diary on 
page 6. 


Royal Opera production of 
Peter Grimes, Co vent Garden, 
WC2. 7.30 pm. 

English National Opera perform 
Euryanthe, Coliseum Theatre, 
WC2. 7 AO pm. 


Tessa Nicholson (piano). St. 
Lawrence Jewry next Guildhall, 
EC2. 1 pm. 

Syraphonica of London, con- 
ductor Wyn Morris, in programme 
of - Wagner, Beethoven and 
Mahler, Royal Festival Hall..SEl, 
8 pm. 

Musica Beservata play 16th 
century Spanish music. Queen 
Elizabeth Hall. SEl, 7.45 pm. 


Firm the Director ’ 

Process Plant Associatkm- 

_ Sir,— We applaud the Prime 
Minister on his call to British 
industry to - look to British 
sources of plant and machinery. 
He rightly points to the folly of 
increasing imports from foreign 
suppliers which can only 
diminish our own industrial base. 

What could be more funda- 
mental than the basic plant From 
which the wealth of the nation 
is produced? — and the innova- 
tion, development, leadership 
and experience put into it for 
oyer a century. 

Britain is too quick to forget 

Solicitor as 
town clerk 

From Mr. C. D. B. Gowers 

Sir,— Unlike Mr. S. P. Best 1 
did nut have the benefit of 
reading Mr Churchill’s article 
on town clerks (May 2). Mr. 
Best does not. however, substan- 
tiate two important assertions 
which he makes in his letter of 
Mey 6: (a) that solicitors are the 
obvious choice for chief officers 
and (b) the solicitor town clerk 
ought to be the defender of the 
rights of the public. 

Why should 'solicitors be the 
obvious choice for this favoured 
ro!6? Mr. Best is correct in say- j 
log that local authorities are 
legal entities and as such they 
must of course bave access to 
good legal advice to ensure that 
they do not exceed their powprs 
or neglect their duties. Bin 
surely ail companies are “only" 
legal entities ao'd ' run siurtiar 
l«M»nl -vs’-*. T»o Mvm*»aTriP^ fir'd 
that solicitors are "the obvitm«i 
choice" for the post of chief 

Local government (1'ke com- Ml' 
mfirce and industry) does not [ 
live by tee Jaw alone and stirelr 
dne weight In the management 
of local government must be 
given to the other major 
resources: finance, labour and 
other orofessional skills. It is 
true that in many authorities 
town clerks hive traditionally 
succeed'd in fulfilling the role 
of genera] manager or chief 
executive but surely this iy 
because they proved able \ 
manaeers able to leave the leea! 
work to other lawyers. Whether 
5fr. Best likes it or not local 
government needs not only good 
lawyers but good managers. Are 
accountants, engineers and even 
barrister*; and soda! worker? 
Inherently incapable of provid- 
ing good mano«etnent material? 

Mr. Best is also surely wronvj 
in saying teat solicitor town** 
clerks are defenders of thej' 
rights of tee public. It is tee) 
local authority, as the soHritor** 
client which has the duty to i 
p-nt»ct public rights and the 
sn]»cltor cannot defend those 
rights if the authority e’teerl 
Chooses not to or does not dele-j 
gat* its authority to him. 

C. D. B. Gowers. 

2. Rowland Close. 

Wolvercote. Oxford. 

■tea nuu 

t Scotch Wj 


^Matthew Gloqg&SonlJtL' 
Perth. Scotland 


70 s proof- 






Waterford Glass heading 
for further record 

Rugby Cement 
sees upturn 

Financial Times Monday May 22 1978 

Lead Inds. encouraged by 
current sales volume 



a Confident forecast or 

anolher year of record prollt.s and 
nows of expansion on all fronts 
comes from Waterford Glass, the 
Irish industrial group. 

In his annual statement with 
the accounts chairman Mr. 
Patrick McGrath, the chairman 
says ihal when announcing the 
preliminary figures the directors 
indicated that growth throughout 
the group would he sustained in 
197S. " So far this year our hopes 
have been realised. 1 am very 
confident that lflTS will show- 
further improvement." 

Me reports that sales of Water- 
ford Crystal increased on all 
markets once again and at 
present the order hooks for 
crystal products are full for 197$ 
and beyond. Price increases and 
improved productivity will enable 
ihe group tn maintain its rale of 
profit and so show a further sali-v- 

faeiory gain during the current 

Air. McGrath also announces a 
decision to invest over 14 m in a 
new- factory in Waterford which concerned with the pro- 
duction of new handmade 
products the company is develop- 
ing in the crystal held. 

Aynsley China, the English fine 
china company based in Stoke-on- 
Trent. also showed a considerable 
improvement in sales, profit and 
employment. During the year 
additional premises were pur- 
chased which will be used for 
further expansion. AH its markets 
remain extremely buoyant and it 
is expected that 1978 will show 
further increases. 

The Swit7er Group, which 
operates department stores in 
major centres throughout Ireland, 
once again performed satisfac- 
torily. the chairman reports. 

At present a large scale expan- 

sion of the main store in Dublin 
is commencing which will add 
very considerably to the selling 
space and to the variety of goods 
available. Expansion is also 
planned in some other units of 
the group and the overall outlook 
for the retail division is very 
promising, says Mr. McGrath. 

Results of the Smith Group, 
which is mainly in motor distribu- 
tion were extremely impressive, 
it has embarked on a capital pro- 
gramme largely in the retail 
division and the Smith Group is 
looking forward to another suc- 
cessful year. 

As reported March 1. group pre- 
tax profits jumped 37 per cent to 
a record £9.2m in 1977 on sales 
of £I00.5m. 

At the year-end borrowings 
showed an increase of 21.7 per 
■-ent to ri4..l4m. .Shareholders' 
funds were up 14.7 per cent to 
£31 .4 m. 

APE expects to maintain growth 

THE OYER AM, situation at Amal- 
gamated Power Engineering can 
he viewed with confidence, says 
Mr M. A. Whillall. the chairman, 
in his annual statement. Present 
indications art that the group's 
business will continue on a satis- 
factory basis and in particular the 
trend towards larger contracts 
with greater engineering content 
will maintain growth for years to 
come, he adds. 

As reported on April 28 (ire-tax 
profits for 1077 rose Trom JJ.lllim. 
to a record £ll.2tlni. on turnover 
of £.lfi.i.ini against £4C-"3nu And 
the dividend is raised from 
5fij$l46p id j.2Sp. On a CCA 
basis pre-tax profit is adjusted to 
after adjust ments for 
depreciation £0K2m. cost of sales 
£2.S.-»m, and the gearing factor 

Manufacturing turnover nf the 
L K subsidiaries increa-cd by 2$ 
per cent to f49m and ihe UK 
profit by 132 per cent to 
£5 47S.OOO. 

Turnover and profits from over- 
seas suboidtaries and associated 
companies showed a decline in 
Mu contributing ISIIS.000 to 
group profit compared w ith 
£l. n 2B,000 in l!»7fi and £612,000 in 

The chairman says the M77 
figures are stated on the basis 
of exchange rates as at December 
3- 1977: the change in exchange 

rales during 1977 resulted in a 
reduction in overseas profits of 

some £100.000. 

Nevertheless, the directors are 
satisfied with the progress of ihe 
manufacturing and selling com- 
panies overseas, particularly the 
wholly-owned subsidiary company 
in South Africa and the associ- 
ated companies in India and 

The only exception is Australia, 
where the group has had difficul- 
lit-s with the .small manufacturing 
company acquired in M76. and 
ihe-e. and the depressed stale ol 
the Australian economy give little 
hope that there will be improve- 
ment before 1DS0. 

The group will continue io 
develop both existing and new- 
aviivities overseas the chairman 

Covering the nrtlpr honk situa- 
tion Mr. Vliittall says that in the 
UK subsidiary companies. Bed- 
ford and Birmingham are satis- 
factory. and there is continued 
improvement at Manchester. 

The Pershore company is not as 
well placed as the group would 
wish and he sees no reason to 
change his forecast made Iasi 
year that this company will not 
return to its former strength be- 
fore I9S0. 

The group will continue to 
invest in research and develop- 
ment and has cnnital expenditure 

Deposits or J!l.0u0-E25.000 accepted for fixed terms of 3-10 
years. Interest paid gross, half-yearly. Rates for deposits 
received not laler than 26.5.75. 

Terms (years) 3 4 5 fi 7 S 9 10 

Interest ‘ r a 10* 10J II lli 11* llj 12 I2i 

Rates for larger amounts on request. Deposits to and further 
information from The Chief Cashier. Finance for Industry- 
Limited. 91 Waterloo Road. London SEl SXP (U1-92S 7S22. 
Ext. 1771. Cheques payable to “ Bank of England, a/c FFI." 
FFl is the holding company for 1CFC and FCI. 

commitniems of over £3m. And 
the directors consider it is essen- 
tial that this level of investment 
continues, he adds. 

At the year end there was an 
increase in net liquid Tunds of 
£5.99m i£0.53m) comprising a 

£1.9m (£D.22m) decrease in short 
term borrowings and £4 .09m 
l£0.!lm) increase in cash. 

During the year ex-g ratia pay- 
menu of £13.000 were paid to 
former directors. 

Meeting, Bedford, on June 15 
at noon. 

slightly more 

There are signs that the down- 
turn in business within the con- 
struction industry is levelling off 
and there may be a marginal 
improvement in demand later in 
1979, says Mr. G. H. C. Needier, 
the chairman nf Hnveringham 
Group. Taking this into account 
loeelber with the d.reclors' pro- 
gramme of acquisition and 
diversification, the immediate 
future is viewed w Ith a little more 
optimism than hitherto, members 
are told in his annual statement. 

In order to reduce the group’s 
dependence on tbj UK con- 
struction industry, the directors 
are maintaining their diversificu- 
Mon policy and the current year 
has seen further steps in the 
insurance broking, waste disposal 
and general haulage parts of its 
business. Mr. Needier reparts. 

Further developments are 
planned in the short to medium 
term and. in particular, the 
directors have over the last 12 
months been considering the 
prospects for growth and develop- 
ment in the U.S.. he adds. 

IN HIS annual statement, Lord 
Boyd -Carpenter, the chairman of 
Rugby Portland Cement Company, 
says that there are modest but 
reassuring signs of recovery m 
construction in the UK. and so of 
demand for the company's 

As reported on April IS. pre-tax 
profit advanced from £L2.49sn to 
a record £13.82m fur I9r/, on sales 
of £8t.8m (£77.6m). 

Based upon the Hyde proposals 
pre-tax profit is reduced by 40 per 
cent <45 per cent). 

The result reflects a measure of 
success in a far from easy UK 
market combined with a substan- 
tial improvement in results from 
the Western Australian sub- 
sidiary. Cockbum Cement, the 
chairman points out. 

During the year. Cockhurn 
greatlv increased its sales and 
profitability and as n result of its 
furlher contract for the supply 
of limp to Alena for 15 vears, has 
secured a good market for a long 
time ahead. 

Tn the UK large investments 
have been made al the Rochester 
and Snuthnm works in order to 
arhieve more economical uses of 
energv as well as increased 
capacity. Planning permission has 
also been received for the mod- 
ernisation of the works at Lewes. 

The total expenditure on addi- 
tions to fixed assets during the 
year amounted io 113.16m. The 
directors consider the market 
value of the croup's land and 
buildings at the year end was at 
least £J3m in excess of the book 
value of £60 .33m. 

The directors propose a capital 
reorganisation under which exist- 
ing ordinary ami non-voting 
participating shares are to be 
combined into a single class of 
equity capital carrying Tuli voting 

A statement of source and 

application of funds shows bank 
balances reduced by £3.53m 
(£L26m increase) at the year-end. 

Prudential Assurance Company 
bolds 5.4 per cent of tne equity. 

Meeting, Rugby, June 13, noon. 

up 48% 

Cartiers Superfoods the Kent- 
based food retailer has achieved 
another record year with pretax 
profits of £828.494 for the 52 weeks 
ended January 28. 1978 compared 
with £810,505 for the previous 57 

weeks representing a pro-rata an- 
nual increase of 4S.S per cent. 

With turnover increasing from 
£13.Sm. to £20^m. the net margin 
remained above 4 per cent. 

More than half the net share- 
holders funds of £USm. are now 
invested in freehold property nnd 
the directors have announced that 
they have instructed Donaldsons 
to prepare a -‘valuation of these 

The company now opera les 11 
stores in Kent with a gross floor 
area of 215,000 sq. feet but further 
sites already acquired with full 
planning permission will bring 
the number of stores up to 14 with 
a total gross area of 343,000 sq. 
feet by Jate 1979. 

These include two relocations 
as well as new sites in Brighton 
and Eastbourne with the com- 
pany extending its territory into 

Turnover should exceed £28.m. 
for the current year from existing 
branches and a further rise is ex- 
pected for ihe following year 
when the new branches com- 
mence trad big. 

TN HIS annual statement air. Ian 
Butler, the chairman of Lead 
Industries Group, says that a 
general rise in world trading 
activity may still he distant and 
new sources oF competition have 
arisen in ni3ny overseas markets 
hut the diversity of LfG's interests 
as a supplier of a wide range of 
materials to many industries 
means it would benefit front a 
general increase in international 

Although there arc so few 
signs of world markets increasing, 
the group companies have the 
capacity to obtain a higher share 
or these markets, and the net 
volume of sales compared with a 
year ago, is quite encouraging, 
he tells members. 

Throughout 1977 capital pro^ 
grammes in many of the UK 
operations were continued at high 
levels, and, although- at £5 .2m. 
expenditure was slightly lower 
than in 1976. the amounts auth- 
orised for fuiurc expenditure 
were higher. While some of this 
is to maintain a high standard of 
plant and further to improve 
environmental control equipment, 
expenditure on additional capacity 
should also help in achieve better 
productivity as demand improves. 

Titanium dioxide forms a major 
part of the pigment industry, in 
which L1G has been involved for 
many years. The immediate out- 
look makes it difficult to forecast 
the timing nr a return tn adequate 
profitability, says Mr. Butler, but 
significant capital expenditure is 
justifiable to provide qrearer 
process capacity: U is therefore 
(ikeiy that further capital will be 
subscribed by the shareholders, 
and there is confidence that the 
investment vriff prove of benefit 
to LIG as world trade recovers. 

The funds received from the 

board meetings 

Thr» COM'PJIMVS ba»‘ ' ""' JJ 

(talcs ol Board linwtinw to *"• „ 
Exchange &u *-' h mi-L-imns -ir*' '’ - 

held ror ih.- Durpo*: of coiwid«Tin- u»i 
{tends. 'Ulivial indicauons arc 
.U|. u-hvihiT dividends corvcmcd are 
ffiSnm" ™ fin j I s and th- *nil« -divisions 
sbBwii belni,- are based nwnly ou last 
fear > URli'iublv. 


Interims: Su>ekhn«l«.-r, TniJ. 

Finals: imperial note! siomsi ■"'<* 
Supvty- nuiwlch lnvr'nrnuiit Trust. Winch- 

more lare^lliwiu Trot. 


Interims — 

Carr's Mil Jins Industries J] 3 ' • 

nubiTIcr Aijy ■! 

Dundee nnd London Tnvesl. Tn. -lime l ■ 
Spencer Clark Mteial industries . Ma> -a 

Eas" Midland Allied Press — .. 1Jj JV 

Eastern Produce .... *! 3 > 

Gocell European Trusi -« 

mil ipbilipi LivesoiH-nl Tusi . Mar --I 

y^m otii Mny -J 

Land S.-n/rUres invest Trust.. . J" n, ‘ 'J 

Lindustra-r- — • •• ■ ■!“’“ *! 

London and Oversea* Frelcnirrs JUiR w 

Moreau *:ruciftl 0 ■{""* 

Pilkinsion , V-| 

Polnnark Internal ions I 

Tinu Pruducls **ay ;■* 

Walker and Staff Jun,: -° 


Intel a l issue were retained m 
foreign currencies to he available 
to meet the needs of existing 
overseas opeartions ami to finance 
expansion into new areas. 
All hough relatively Eillle_was in 
fact utilised during 1R« «- the 
management have several possi- 
bilities under consideration, a few 
smaller ones are well advanced 
and agreed in principle. Even- 
tually it is hoped to achieve a 
number of medium- sired opera- 
tions. but it will take lime lo 
deploy these funds into such over- 
seas activities which will benefit 

from the link with the groups 
major U'.K. operations. 

While ihe subscription of new 
capita I to Tirixule is reflected in 
die luitaitcc sheer the atoms it ion 

nf the additional shareholding 
from Fcderateo Chemicals was not 
completed until after the year 
end. The group has available 
more than sullicieni medium-term 
loan facilities to meet these com- 
mitments and some have been 
drawn in WT8. With ihe addi- 
tional benefit from lower metal 
prices, the current liquidity niaces 
the group m a strong position. 

At the end of 1977, the net 
assets applicable to the ordinary 
capital at £07.3m were £u m 
higher: the increase arising from 
retained profit and from the new- 
capital was in excess of this, but 
currency changes cause a reduc- 
tion of over £4nt in the sterling 
value of the net assets of over- 
seas subsidiary and associated com- 
panies. The net assets for each 
Ufl ordinary share do not show 
a compn ruble increase because of 
the issue of new capital. The 
figures Tor 1976 C2?Spt and 1977 
t23 (5.3 pi are similar despite the 
increase in the number of shares. 

liillntiou-ad justed accounts 
include a group balance sheet 
which shows the ordinary share- 
holders' assets .-it 1221m against 
ElOOui at Lhe end or 1976. 

As reported on April 21. pre- 
tax profits rose marginally from 
£20.5m Lo CSO-Uni in 1977 on sales 
of £ttlS.53in (£16S.S6m>. 

Ou a CCA basis pre-tax profits" 
arc shown at £ 14.83m <£l-i.56mi 
after adjust menis for cost of sales 
it. 14m i£2.0ttm), depreciation 

£1.49m (£1.46nt ), and share of 
associates £4— 4»n i£4.5m) offset 
by a gearing adjustment of 
£0.7Pm t£i.00'nt). 

G. W. Sparrow off to slow start 

Profit increase likely 
says Tarmac chief 

TAKING Tarmac as a whole Mr. 
Robin Martin, chairman, says he 
believes it has a reasonable 
chance of increased profits in 

The past winter in the UK was 
worse than that previous, itself a 
poor one for weather. Trading has 
suffered accordingly and this 
makes it difficult to judge the 
current year's outcome. However, 
the chairman forecasts that UK 
trading for the rest of the year 
will be satisfactory and in par- 
ticular he expects the quarry 
products, housing and property 
divisions to show bigger profits 

Overseas the group has 
Improved its financial perform- 
ance but trading in Germany and 
France will remain a matter for 
concern and demand in some of 
the developing countries is not 
as buoyant as in recent years; Mr. 
Martin does not therefore see a 

Waterford Glass 
23rd year 

of record profits 

Results and Dividend 

Group sales topped the £100 million 
mark for the first time at £100.5 million, 
26% up. 

Profit before tax reached another 
record at £9.2 million, 37% up, while profits 
after tax jumped 43% . 

A final dividend of 20% is proposed 
making a total of 35% on the capital as 
increased by the one for three 
bonus issue. The total dividend 

paid last year was the equivalent / 

of 24.375%. 

The Future 

The Chairman is very 
confident that 1978 will show 
further improvement. 

Pre-tax mm 

profits (POOD) M 
Earnings «— -i 

per share (p) L-J 

1973 1974 1975 19 76 1977 

Considerable improvement in sales, 
profit and empfoyment—B/f fts markets 
remain axtremafy buoyant— 1978 
expected to show 
farther increases. 

Switzer Group: 

Performed most 
satisfactorily — large 
scale expansion starting at 
main Dublin store— overall outlook 
very promising. 

Waterford Ctystai: 

Results showed considerable 
improvement— order book fall far 
1978 and beyond— over £4 million 
being invested in new factory. 

Smith Gnotfp: 

Results were extremely 
impressive— number of cats sold 
Increased— looking forward to 
another successful year. 

Copies! of the Report and Accounts 
may be obtained from The Secretary, 
Waterford Glass Ltd, Kilbarry, 
Waterford. Ireland. 

spectacular improvement in this 
year's overseas results. Neverthe- 
less. management and control 
systems are being strengthened 
and full benefits will eventually 

As reported on April 28. ex- 
cluding the £16m of provisions 
and losses from Nigerian opera- 
tions, taxable profits for 1977 
advanced from £22.5m to £24.l6m. 
Turnover rose from £521.15m to 

A divisional analysis of turn- 
over and trading profits shows 
(£000s omitted); quarry products 
£191,372 (£167.852) and £12.495 
(£11,027); building products 
£115.694 <£100.447) and £5.692 

t£5.529): construction £223.341 
f £159,132) and £6.355 (£5,774); 
international £72,825 (£46,1461 

and £437 f £2.782); housing £48.063 
(£42,047) and £4.499 (£4.321): pro- 
perties £6.760 t£620) and £434 
f£91 loss): separate activities 
£5.478 i £4,905) and £1,144 (£900i; 
central costs £2,039 1 11,703). 

A geographical breakdown dis- 
closes: UK £493,296 (£385,397) and 
£29.956 (£25.077); Europe £76,003 
(£76,891) and £1,966 (£74 loss); 
elsewhere £87,634 (£5S^61) and 
£1.097 (£2.714). 

The AGM of the company will 
be held in Birmingham on June 
13 at 11.30 a-m. 

ALTHOUGH specialising in crane 
hire and heavy lifting, the opera- 
tions of G. W. Sparrow and Sons 
are diverse in terms of the 
industries it serves and the 
countries in which it operates 
and it is this spread, says Mr. 
A. W. Sparrow, the chairman, 
which provides opportunities and 
the directors confidence in future 
profitable growth. 

The. current year has started 
slowly and will be difficult, he 
tells members in his annual 
statement, but inquiries and 
orders - for the second half and 
through into 1979 are now build- 
ing up at an encouraging rate. 

Sustantial investment has con- 
tinued in neiv cranes to hold n 

FT Share 

The Following securities have 
been added to the Share Informa- 
tion Service appearing in the 
Financial Times;— 

Leaseway Transportation Corp. 
(Section- Overseas — New York). 

Mining investment Corp. 
(“Mlncorp") (Section: Mines— 

Saga Holidays (Section: in- 


Turnover of Chester Darrie, 
which is to be acquired by Austin 
Reed from July 1 is expected lo 
be £3m. to I4m. This compares 
with lem. for the former group, 
including its Wrexham and Italian 
operations. Neither or ihesc op- 
erations is included in the rescue 
deal announced on Saturday. 

strong position in the industry 
and m meet demand when it 
increases. Over £3.5m was 
invested in new cranes in the UK 
in 1977 and £i.tim worth was on 
order at the year end with a 
furlher £2m committed for the 
1,000 Ion Gottwald due in 1979. 

Full assistance was received 
from the group’s bankers during 
the year and year-end overdrafts 
of £432.000 were well below 
facilities. Citibank will he 
financing the 1.000 ton Gottwald 

The group has now agreed Hi? 
terms uf a Joint Vulture Agree- 
ment with the Alrreza Group, a 
substantial and highly regardel 
organisation in rhe Middle Ea«*. 

Under this agreement Sparrow 
wil) have a 4!) per cent share- 
holding in a Saudi Arabian com- 
pany and the directors look 
forward lo increasing returns 
from ihi.s area in the years ahead. 

As reported on April 12. pre-tax 
profits rose from X 1.31m to £l.4Sm, 
in 1977 on turnover or £ll.6m. 
c£S.55m). At the year end there 
was a net outflow to hank 
facilities of £234,0U0 (inflow 

Inflation adjusted accounts 
show pre-tax profits at £t.04m on 
a CCA basis after adjustments for 
depreciation £363.000 and gearing 
adjustment £425.000. 

Meeting, Bath, on June 2. at 

Ecclesiastical Insurance 
bonus rate increased 

A RECORD level of reversionary 
bonus has been declared by 
Ecclesiastical Insurance Office in 
respect of the three years end- 
ing February 28, 1978. The basic 
bonus rate is lifted to £4 50 per 
cent, per annum of the sum 
assured and attaching bonuses 
from £4.25 per cent. — the rale de- 
clared three years ago and main- 
tained during the interim period. 

In addition, the company has 
declared a special bonus of £12 
per cent, of bonuses attaching lo 
contracts prior to the present de- 
claration. The company does not 
pay a terminal bonus; it con- 
siders that the use of special 
bonus payments provides long- 
standing policyholders with a fair 
share of capital profits, coming 
through, both realised and un- 
realised. Special bonuses have now 
been declared on each or the last 
four declarations with the excep- 
tion of that in 1975. a time when 
the stock market was just recov- 
ering from the 1974 bear phase. 

On personal pension contracts, 
the bonus rale Is effectively £6 per 
cent, per annum compound com- 
pared with £5 per cent, forecast 
when the contract was launched 
two years ago- In afi cases, the 
interim rates are the same as 
the new declared rales. 

Ecclesiastical is the smallest of 
the three life companies that do 
not pay commission to inter- 
mediaries. The company has al- 
ways been a leading performer 
for with-proflt business and this 
new rate puts it in top position. 
A policy maturing now after 25 
years with a monthly premium or 
£10 will have a maturity value of 
£7.828 compared with £7.203 pre- 
viously. The company is also re- 
launching its investor policy 
which gives under current bonus 
rates a net yield of 10 per cent, 
per annum over ten years. 


noche Securities — County Bank 
acquired J S3 .333 shares on May 
10- thereby increasing interest to 
433.333 (10.4 pe rceni). Stream- 
clare acquired 91.667 shares on 
the same day increasing interest 
433.333 110.4 per cenrj.. Streem- 
clare is a company of which Mr. 
D. J. Hughes, a director of Roche 
Securities, is a share holder. 

Fledgeling investments — 
Northern American Trust holds 
337,000 ordinary shares — over 5 
per cent 

Christies Internationa! — Follow- 
ing conversion of 1.054,915 “A" 
ordinary shares lo ordinary 
shares on May 17 directors' share 
holdings have been reduced by 
following sales: Mr. J. A. Floyd 
(beneficial) 250,000; Mr. A. G. 
Grimwade (beneficial) RO.OnO and 
(non beneficial) l99,3Si>: Mr. L. 
G. i\t Hannen i beneficial i 1 50.000 
and tnon-beneficiai) .W.ortn. Mr. 
Patrick Lindsay (beneficial) 

David Dixon and Son Holdings 
— -Mr. H. Turpin, direel or. now- 
holds 23.000 7 per cent preference 
shores (41.99 per cent;. 





Interest Minimum Life Of 1 

(telephone number in 









Barking 101-592 4500) 




Barking 1 01-592 4500) 





Barnsley Metro. (0226 203232) 





Knowsley (051 5486555) 





Oxford (0S65 49S11) 




5.0 n 0 


Poole (92013 5151) 





Redbridge (01478 3020) 


i -year 



Southend <0702 40431) 





Thurrock (0375 





Thurrock (0375 5122) 


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VV rekin (0952 505051 ) 






The Bank of Tokyo, Ltd. 
U.S. $40,000,000 Floating Rate 
Notes Due 1980 

For the six months 

22nd May, 1 978 to 22nd November, 1 978 
the Notes will carry an 
interest rate of 8-&% per annum. 

Listed on the Luxembourg Stock Exchange. 

By: Morgan Guaranty Trust Company of New York, London 
Agent Bank 


Saturn Investment 
. ManaccruciitCo.Lfd. . 

Telephone: 01-236 1425 - 

Rates paid For W/E 21.5.78 

Cali 7 day 3 month 
?a P-a. % pj. ?opa. 

Mon. 7.340 . 7.096 — 

Tues. 7.930 7.7B5 — 

Wed. 9.445 7.851 825 

Thurs. 8.322 7938 — . 

Fri./Sun. 7.699 7.924 — 



giants office dealing with 
property within the 
City of Londor> wifi open at 
24 Austin Friars EC2N 2EN 
Telephone 01-638 9011 

u- voxT , ~t?~ ^ 

S'.-.atK.-, : 


'"r .. - _. r .r j - 

! . 14 Aust.n 

/ •V^F::,rr. 


*»*..'* *1: ' L I { 



Financial Times Monday May 22 1973 

Pending dividends 

t ^ 0se rf ,ast y« rs naSSSSm 

Sn oilicuny nf, ^ l Board mcetinKS f indicated thus*) hare 
dwKrSi 1 J *?’ 11 fihou d * emphasised that the dividends 
n 5 . sh 

Preliminary profit ,„.„ g || y 



Announcement last year.' 
accompany final dividend 


June ;i 

A n noun iv- 
tnt-m last 

im. i.» 


AHtexI ffrnra. 

Undo Ain.Tican 

Conni «5rp June 9 nh . s dM 
Alllllu Tr.1ILM .13l 

*&sr isrs ers^ 1 

\\M .. Ji„i !„■ J ^ 
\TV ... June F|| ^, 3 U7 

Anno on cp- 
mem last 

flaFtiT PiTkin* Juilu 13 Final " 'UK 
“““ ^ hj , r ‘ n “ ,n ■ ” jy - 5 Im. 1.6313X3 
S 3 ® Final 4.BXM 

RSfirt Uavii Final 3.MW 

iS and MT. ■ .111 Tif 13 Int. 3J 

SUrt ■• Jla3f = 4 

1 Thrts. i Mav is j m . ;. 4 

l-'.S. ■ Juni -29 See. nil. 3.4M 
Bril an*l ft'raoi. 

Shippmi: -lum- ia Final 4.3543 
Brown •Jnhnt .. J»ii» 24 Sec im s 28 
Brwu Shipley June 9 Flan 4.79 ' 

CvnNTlidai.'d June e Final 4.88343 
t-h,0rn-.v. tirp ..June 1 Im. 1.18 

!?*■ Sec- Int- S.4 

SSffirilm" • Jtan “ 15 Finals 

Oil- mi cal June 1 Final 9.389B 
iTompAir .June is fot. 1.5 

Ceurraulds ... Mav 25 Final 4.318 
Dawson Jjii ... Jon..- «o Final 7.5833 
Dc La Kuc ...June a Final 6.4 test. 
Pribson Park Juno ,4 j Df 9.933 

Produ<v...Mar 24 Final nil 

Ekr. and 

G.-n. in v... June 21 Final U.S 
Bluer ram.- 

K.-niols ... Jnne 9 FlnaJ L4515 . 

Emiliah China 

Clays .June 18 Ini. J.73 

'Ftnr Art 

nmlptuis. May 23 Final 0.8512 
Flcliy *Jas.v .June 3 See. Im. 3.11 
'Gold l-'u'Ms or 

SA «roup..j\iw» 13 piyv nne 
Gen Mm. Grp. June 1 Divs, due 
Grand llri. ... Juno 2 mi. 1.6 
Gi. Portland 

lisi.ilcs June M Final 2J457 
t.olnn.-ss 1 A. 1 June in foi. 2.1SW 
i.'mhrlr Cornu. June 9 Final « 

Hawhms June -j\ Final W.7S 

IlJrr/«*iis :md 

CmstK-id June 13 Final 10.43 
Hi-kson U'flch ..June 2 Im. 3.S31 
Kill Smiucl .. Mav 31 Final 2.7853 
> r Gas June 29 Final .iJT957 

MCI Mar 25 Im. 2.8 


.ConsolM.iii.-d .June 9 Int. due 


Mailboy .Jane 14 Final 7.1938 

“ Shoes .May 3 fin. 0.77 

■Key sc r 

Ullmann.. May 24 Final 0.355 

■ •Land Sees June 14 Final 3J54 

■Lindufurlca ....Jane 21 Final 3.646 
'London and 

Northern. ..May 21 Final 2 

•“ LOFS M June 14 Final S,TW8 

Lrous fj.) June 29 Final 5.538 

■Marlcy May 31 InL 1 

•MEPC May 24 Int. nil 

•Metal Box June 3 Final 7.48 

■Minster Assets.. -Maj 23 Final 1.748 
MK Electric . . June 22 Final 2.88 
Nat. Bank 

Australasia... Maw 11 Int. 8.5 cents 

News Int June 29 Int. 4 

Nonhn. Foods ..May 31 InL 1 
Pauls and 

Whites .Jane 18 Final 2.4M 


Bai tender.. June 8 Final 4.031 

_ -Bros. June 16 Sec. lot due 

Pl«*ey June 21 Im. OA8707 

PnweD Dnffryn June 21 Final 5.JS884 
•Press 1 Win. 1 ..JUay 25 Final 8.75 
•Prop. Hay's W ~ May 25 foL 1.432 
Prop. Bids, and 

Inv. TsL.. June 28 Final 3.788 


Electronic.. Jane S3 Final 3.134 
•Ransotnc Hffmn. 

Pollard .-May 24 IM. \M 
Rcdiffusion .... June 24 Final 3.415 

■Reed Tnt -May 31 FlnaJ 7.8445 

Samuel fH.l May 24 Sec. Iol 6-4 

•M6 Group June 8 Final 2 

SGB . „ ...Junes lot. 2-5 


EnE... June 23 Final 2J756 

Stall er InL Mar 20 Final 1J1 


Chartered ..June 28 Final 18.325 
Stave! ey Inds. .. May 12 InL 4.4 
Swan Burner .. May 24 Sec. int. 3.5 

Tesco ..Jane 22 Final 0-S587 

Triplerast JWar. 31 Final 1301 

Trloiex Fddrles.. June 15 Final 2.738 

UBM ....June 16 Final 2^4125 

UKQ ITIL May 31 Final 5J3 

Vaux Brews. ..June 34 Sec. -tat 8.83 
Ward (T. WJ ..June ID lot. 1-21873 
Wedcwood . .June 10 Final 3.7 
■Wolv. and Dudley 

Brews.. .Jane 1 lot. L7 

1 Jonas 1.. June 17 Final 4.8185 

•Board meethiEs intimated. tRhdns 
issue since trade, t Tax free. (Scrip 
issue since made from resemft. 


Greater role urged 
for regional banks 


INTERNATIONAL capital map and the encouragement this lends 
Kets are currently very liquid to support regional trade efforts, 
and these credit conditions are This «n be useful in . three 
expected to permit borrowing by ways, it is argued. “ Regionally 
developing countries to rise by based banks will be ab]e 10 offset 
19 per cent, this year to as the inadequate risk judgments of 
estimated $21 bn, including oil- the less well informed institu- 
producing less-developed coun- tions outside the region by deal- 
tries (LDCs). ing in the reverse direction is 

Under the current conditions secondary market.” 
of high liquidity the financing of . Second, u export finance on a 
uie non-oil LDCs’ current account regional basis will be en- 
defidt estimated by the OECD con raged” and this will stimulate 
at $33ba this year, should present regional trade as well as exports 
no problem but “ can such coo- outside the region, 
ditions be expected to last?” asks Third, ** project finance which, 
die latest issue of The Am ex to be successful needs a close 
Bank Review. working knowledge of the local 

“ The outlook of a tighter scene will be more efficiently 
credit market could reduce both encouraged.” 
the gross and the net flow of Amex Bank estimates on debt 
credit to tbe LDCs and particular servicing costs underline bow 
LDCs could -find . such a turn- important it will be for LDCs 
round in market conditions very to be able to rely on a steady 
damaging to their growth pro- flow of private capital in tbe 
grammes,” according to the years to come. 

Review. Taking the six major 

One of the ways it suggests borrowers from the banks 
that LDCs could reduce their (Argentina, Brazil. Korea, 
dependence on external finance Mexico, Peru. Philippines) “by 
is in building regional inter- 1980, of every two dollars bor- 
dependence through regionally rowed from the banks, one 
based commercial banks. Asia would be to service old debt 
provides a practical example of This estimate is probably con- 
the worth of sucb a development servative ” 

Puk’ic Works Loan Board rates 

Effective from May 13 

Quota loans repaid 

Non-quota toxic A“ repaid 


hv ElPt 



by ElPt 



tip 10 5 







Over 5. np (n 10 







_Drcr 10. up lo IS 







^"Utlvcr T5. up to 25 






- «} 

:c^ r 25 







* \rtn-quota loans B are 1 per cent, higher in each case than non 
luoi.n loans A. i Equal instalments of principal, t Repayment by half- 
t'carly ;i»nui«.v 1 fixed equal half-yearly payments to include principal 
iml interest). SWith half-yearly payments of interest only. 



s - 1 


— * llit-h Lffl 


i J I U'l H ■ 

■ i t.l 1 i’.' !W I !h l*hiti* Haii-Mji > 

13B '+! lo.7=- laJ >7.4 ' 9 J 

11 I. ' ; l 




H..- 1 

!li -l< . I.m i 




1 » r. 



U»i>. -u-i. i‘n 


1 - 

• l.i 

’ i .<• 

* . 

iflwi. hxiin-' Im I'iti. VCrmt.i- 



i r 


I-. 1 - 1 , |.\iiKitai:fi(>.i liHvt-Tui dim. Vivi 

U . 

. a 1’ 


l.'-i , 

l.*l, )..| ui Mill 4-, I'.nii . i •im. Kill, -ml l''rl. . 

< 102|. 

— 1 

• ;% 

J, 1 iH-li-h -Malax. Jt't UI. Jlxirl, M-v 



<4! 4 

liJl .iirc(i*'i h Itm. iM) 11 l!r.l. Iwi 

. 47^. 


, 1* 


l.'jj-sltoikt .1 l HHi-II LlKU. I'rtO 




I | 

, 1 * 

i 1 , 

ItV 'Ivu.ioo ij.i Urn, l*n-t 


: r.r. 


ix'i jUiO'SiiuPi M'ali-r i^Ki«i. I*n. Ii^' 


10 J- 

li‘- K , 

•.'Tif Piilar.i •i^liuu. Kn 

• | 9" , ci’ 


41 *» 

il'.illx-v 11a tux. tin*. Lai. 'ly-oJ 

-l 97 : 

~ ... • 


S : 

I,o. 1 

vl on ril 1 *'!! I?t, tin. Cut. Lji.19£5 

..ljj.111 ' 


FUTtn-X \V,«» !S% 


— ’S 1 

f r 


luij-.ll n>lr I’uLK-ric JPt 

.'101 . 

i 1 


1 « j 

J JUl* « 

lil'Ulllli . 



IS if 

' H:c*« ; U««J 


|C|n«inx|+ w 

p: I 


. - Lr^iisi'Lxiiiiu Brent CIilhimIe 1 l08|mr + 2 

in : Li b 6i2U4|ilii: ^ lij-in Jurmn tMiia-u K«iit ^....;2i3>? i*ni‘ 

1 -.I*. ap alS" IAS • 111 |lnilk«!£li 13B +2 

V.|' i - ,44 |;bi .iiniR -Cuailfiin Inijipml Buk — — j 44pni. + 4 

. . i :4jini I Nil .b**:kna 4i*-*rt Vi'iniu; - ! nt> ’ — - 

•i-,Vii I iJe 5' 34.6 JU'imii 2bfin Il"wiw>ii .UhliMii- — -...J ZBihh, 

>11 1 jl s Ji t» t2|m4la)iin ltn« nlrtv UbAuiicIi ■ BOj-m — 2 

I'lfc.i- 1 la s y o ivi 1 Wl - I 52 .... 

le-ti 1 SB li’* ! 1 '--. Iuhb k XUWiH — - j 160 — B 

j _ .. Ojfini' U'Hteo S(in» : — I" 



\ l .1*. 


Bpnnnrlal'on tfa!i- us-uolfif last day for dcaHns five of stamp ttaor. b FIctjtm 
o,, d dividend and yirld u Forncasl dJiri^nd: 
on Pf’v»ir. rear's eartilnsb. t DvtWteod and fleWJ Owed tmwowejiros 
mherirflliij: e«uiuV’. lor 1 9TB. qUross. t h mures a»s»Enyd. J Caver allow* 
miii'Pm oI rJiarea not now raufcin* far dtvWonfl or ranklns oitfjr lor rwincicd 
fPlanm nrJiv iu iniblli I’ Pnnw «*•■» oUipntlsr udlcait-d. * iM«-d 
n 2r f s «S.| W bolder* of t'rUinary shares as a . *■ righrs. - •• !■**! 
• of ripsinlisjtion. V aunimum lender price. H ■Rflniroduowl. .5^ Ji«"ed 
wnh rcofaaiHBWlon mercer or take-over. ||i| Introduction. □ Issued 
fEr^vit-renw holflere. ■ Alltnmrm wins vor loilr-iaU.!. • Provisional 
partly- Du Ul olloimvirt lettrrs. -k WIUi vrarrontf- 


iA B.N. Bank 9 % ■ Hill Samuel S 9 % 

Allied Irish Banks Ltd. 9 % C. Ildare & Co T 9 % 

■American Express Bk. 9 Julian s. Hodge 10 % 

Amro Bank 9 % Hongkong & Shanghai 9 % 

: a p ganu £i 4 . 9 % Industrial Bk. of Scot 

Hciry A^bacher 9 % Keyser UUmann ; 9 % 

■ Banco de Bilbao 9 % Knowsley & Co.Ltd. ... 11 

Bank of Credit 4 Cmce. 9 % Lloyds Bank 9 o 

Bank af Cyprus : 9 % London Mercantile ... 9 % 

Bank of NSW' 9 % Edward Manson & Co. 101^5 

iSqw Be&VLtd 9 % Midland Bank .; -9 % 

Bnnfiuc du Rhone 9i«5i ■ Samuel Montagu 9% 

Barclays Bank 9 ■ Morgan Grenfell 9 % 

Barnett Christie Ltd.... 9!Si National Westminster 9 % 
Err mar Holdings Ltd. 10 % Norwich General Trust 9 % 

ijrrr. Bank of Mid. East 9 % - p. S- Refson & Co. ... 9 % 

MRrown Shipley - 9 *5 Rossminster Accepfcs 9 <£ 

Canada PernEt. Trust 9 % Royal Bk. Canada Trust 9% 

' SnitOl C& C Fin. Ltd. 9 % Srhlesinger Limited ... J J 

CajTicr — ® ^ E- S. Schwab 

Cedjr Holdings Security Trust Co. Ltd. 10 “n 

rhjrtcrhonsc Japhet ... 9 *Ti . Shenley Trust 51% 

. Chmilartons 9 % Standard Chartered ... 9 g 

.■> v c.ooics 10 Trade Dev. Rank 9 % 

nmpi’difiaied Credits... 7|%- Trustee Savings Bank 9 % 

Krativc Bank • 9 % Twentieth Century Bk. 10 g 

Ciirinthian Securities... 9% United Bank ; of Kuwait 9 J? 

rredii Lj unnais 9 °& wWteaway. Laldlaw 9*% 

The E.vpvus Popular 8 k. 9% Williams & Giyas 

liml™ 1 -ivrrte -..-f l % Yorkshire Batik « % 

Eagil Tnnl ; ® ^ lUMnlvn: of im AcwpOns Houses 

Enali^h Trjnxcnnt. ... JJ 3 connmnw. 

Ftrxt l-nndon Sevs ® jj? ".Mar dcnosiis S'*-, l-moata <*>po«ns 

KlTM Kill. F*n. oypn- ‘J.™ /gSy dcnosiis «' sum oi t\n.M 
.Kiwi Nal.Srrt.UA ... gig T SFJSTS.To » 

V Antony Gihbs 2 ■? and over B5.W0 6 i r — 

•: Rrey haunt! liuaranij’... .0 t c*n «ten»«s ««■ e'- 

. Griodla' s Rank * 9 l nwnoad dowsirs flic:-. 

Mahon..... J S e ***** » IdA 

^Humhras Bank: ® SaA . 

m»- is 


Sew I'lira 



la 'O-loo j.lm-r.-i'm Zund- 



WwI«Im .. 











KU4 38 



12273b 3331- 



14.103- U7 









; 1..7.Q& 2~ 
44 J- 10 Si'^OTO 

lAsM ■ 1-.7IT? 
4J3^C9j ; kMi-ffli 
- 'li.66b.7lb 

nj)mx* - 

Amex in Spanish venture 


MADRID, May 21. 

AMERICAN EXPRESS has in view of the latter’s expertise 
formed a joint company with and believing this was the best 
Spain's leading merchant bank, way of entering a market. Spain 
Banco Urquijo, to promote a already has such cards as master- 
peseta denominated credit card. Charge peseta denominated. 

The company, American Express American Express is aiming at 
de Espana, will have a Pta 50m the upper end of the market and 
fS625.000) capital subscribed on specifically at Spanish business- 
a 50-50 basis. men. In this respect Urquijo is 

American Express chairman, well placed. Not only does it 
Mr. James Robinson said here have extensive business contacts 
that the company had decided to but also has a select clientele of 
launch a peseta credit card in some 100,000 who hold checking 
partnership with Banco Urquijo accounts. 

rise at 

MUNICH, May 21. 
Dresdner Bank in the first four 
months of this year were above 
the level of the comparable 1977 
period as a result of sharply 
higher trading earnings, manag- 
ing board spokesman Herr Hel- 
mut Haeusgen said, though he 
gave no specific profit figures. 

He told the annual meeting 
that average business volume 
over the period was markedly 
above the average for 1977, as 
was the surplus on interest earn- 
ings. _ . 

Credit uptake was sluggish and 
the balance sheet total slipped to 
DM60bn from DM52.1 bn at the 
end of December, but turnover 
in securities trading increased 

Herr Haeusgen said there was 
as yet no sign ■ of a recovery in 
credit business, though the econ- 
omy should improve more 
strongly in the second half of 
this year than in the first six 

If the economic recovery was 
too weak, the best solution would 
be to relieve tax burdens in 
both the private and corporate 
sectors, as well as improving the 
conditions, for depreciation, he 


Esselte bid opposed 

THE State of Massachusetts has 
moved to halt the takeover bid 
for Dymo Industries, the label 
ling company of San Francisco 
by Esselte, tbe Swedish paper 
and publishing concern, reports 
AP-DJ from Boston. 

The Secretary of State’s Office 
filed a cease and desist order 
with Esselte and then filed 
motion in State Court for 
restraining order against the 
takeover bid 
Dymo owns lour subsidiaries 
In Massachusetts employing 950 
persons, the State said. 

The State said that Esselte 
violated Massachusetts laws, by 
failing to file with the State 
forms indicating the possible 
effects of the takeover on opera- 
tions in Massachusetts. 


Namib desert may 
another uranium mi 




Fears oyer monetary controls 


The third Wednesday In the money snpply hHS been excessfve, per cent In places, while Inter- 
month has been a very hectic and that the authorities may be bank overnight rates touched 30 
day in the London money market forced eventually to take action per cent. 

since the early part of this year, by reimposing “corset" controls • -phis rather cra*y situation will 
This is the day when figures are on the banks interest bearing on]y ^ revived by a sharp 

taken for publication in the eligible liabilities. _ reduction in the growth of the 

monthly banking statistics, and Monetary bulletins from stock- mo ney supply. from an annualised 
it has always been the case that brokers W. Greenwell have often rate 0 f over go per cent, or by 
some London banks are under b a d a strong influence on market gome statement from the authori- 
more pressure than others to sentiment, but whatever the out- ^es about the •'corset" 
ensure that they have the correct come of the eligible liabilities in npmaTU , <■„!„, lh(k hank* fnr 

ratio of reserve assets on “make the next banking figures Green- Dj“g d bifiPVwhich^? i£o 
up" day. well cannot be blamed. Its call rreasury bins 1 which are also 

t, hoe nmhfhiv ^ on Thursday for new “corset" r ® sei 7 e assets) -on Tuesday, 

JJ., probably never been a controls came one day after 3 head' -of make up day, 
problem with the major clearing published figure day for the Pushed bill rates down to a level 
banks, but some other banks banks and therefore had no almost Indicating a fall in 
domiciled in London may not influence on that day’s trading. Minimum Lending Rate last week, 
have been 30-punctilious in ensur- Even ^ conditions were very This was only a few days after 
mg that L.1 per cent of their chaotic on Wednesday, because MLR had been raised to D per 
sterlmg deposit liabilities are held th e situation over banks reserve “n* and was on a day when 
m the form of reserve assets asse ts has been exaggerated by sterling fell to its lowest level 
during the rest of the month. fho desire i„ increase elibigle against tbe dollar since last 
This situation lias generally liabilities, thus increasing the November, 
been overlooked, since on any monetary base as a guard against Some banks obviously regarded 
one day the discount houses have new controls. the purchase of Treasury bills 

always been able to meet the Funds lent at call to the dis- as an alternative to lending 

requirement for reserve assets "count houses count as reserve money to discount houses at 
from a limited source, without ‘assets without reducing eligible unrealistic rates. This was an 
putting too much strain on the liabilities, and for this reason the artificial situation, but clearly 
monetary system. houses have found money thrust illustrates how such technical 

Over the past few months bow- upon them on published figure considerations can override wider 
ever, there has been an increas- day. Last Wednesday call money economic events in the ahort 
ing fear that the growth in the with a discount house fell to 2 term. 



2 dnjn notlreJ 
1 day* or 
7 rtayx DntlM,.' 
One month — , 
Two months. J 

Thre* itionib*] 

■>ts month*..,. 
Sine UHinihi-.* 

One year ' 

Two year* 

of dpfoelts 





Local Aulh.! 
ne^otialrlc 1 
hands j 





Depart - . 

Discs uni 
den"’ >1 

BUI- + 

















z i 







8te^7 a 

Ban -81* 


■ i 







8V 0 -85a 

8|, -9 

B3 4 -9 








9A-8T a 

9t 4 91 b 


91*81; ! 

9ic-9i a 


2 : '* 




9i«-9i s 











9 ia-9 Hi 

9' 8-Bin ' 






9i s -9 , 






10-9 1» 

93*. 10 in 


94,-914 . 










— ; 



' — 


Local authorities and finance houses seven days* notice, others seven flays* Used. Long-term tecal authority mortgage rale 
nominally three years lli-tii per cent: four years lU-lli per oeM: fire years I2-I2I per taint, o Sank WH rates m table are 
DuyllUE rates for prime paper. Bnytti? rates for four-month ban): bib* Pi it, -9 1 per cent: four-moa-ii trade bills n per rant. 

Approximate selling rates for one-munUi Treasury bills St per ccm: rvrrt-momh per eeni® and. tbree-mnruh 8i-3 L S 
percent. Approximate soIUub rate for one- month bunk hois SI per cent; and two-month pi-r cent 1 , -and three-month 

8**“ per coni.'- One-tnonib trade bdls Si per cent'- two- month 9 per cent: and also three-month 8} per ceni. 

Finance. Hobsc Base Rates ipnbUahfld by the Finance Houses ActoeiaUoo) 7} per cent from MJ’’ I. 1873; Clearing Bank 
Deposit Rate* dor ■. mall sums at •xrren days* notice i 8 per cent. Clearing Banks Ban Rates for lending 9 per com. Treasury 
Bills; Average lender rates of discount 8.4524. 


nay 18“ 



| Ha 

. j- % 

Market Bate* 

Mny 18- 

t> proad 

[I J0fl0-t.817fl l I J0B5- 1 .8076 


Mwurwd „-J Big te.0080^0S26(2JH»5-2.IJW6 

Aauitwdam 4 j 4J0B-4.lT| 4.0fl*4J»f . 

gntwetoC.... fila 68bBD.69.90 M.KL66.Z0 r?„?5 „ 

, fil| 

<3>pmi1mk«»I 9 10.5S-t0.4T 

Prank fun ...l B L614-3A4 

Urtoo...-J.| ]fi 82.50-85.00 

Madrid— b_ • 8 48 JO- 141. Ml 

Milan....... j iu a 1AT5.1.5M 

-I 7 9JI64-9.90 






II O! 

-Mav If 

51m 19 

ftrb,....^ Blj 
Stockholm^. J 

Tokyo j ats 

V tenns. I Sly 

Zurich.— I i 

i Rups~gJrgu for^rcnvfrnble - franc*’ l«w„ 

Financial francs. S9.hW»J». — 


82.45-82A6 knme 

148.60- MS. 76 

WSf SKKfi 

tszmi&SBSL trMKSv 









5.658 iA 























Gobi Bull inn. 

(a fine uunni 

Clwe .« 178i«-179 . |B177i«-176 

0|*.-nin« S17ai3-17Bl4;R176l2 177U 

Ut-tsuiz fisVS178.65. 3176.75 

■ t98.560). I £97.490) 

Aftem'n te'-S 1178.80 fi 177.90 

. - ,i£9B.523) |g97.B28| 

Gold Com ■ . | 

dvmwJteaJlr. I 

Enicerrand.. S 1 S3 te- 1851* |* 18214-184 U 

(£101irl02Jl dfilOOj-lOZJI 

VtrSov'ena.. 9541; S61« 555-57 

i£30!; -3114) «£50i4-3U4» 
OidSet'sni. (■ 55' , <-S7l* i£5B-57 

.,£301; 3Ha) Jt£30i«-3ix 4 ) 

Gold CPlm > 

' (Internal 1 My) _ . 

Rnisvmnd.. S183i|-lMig:5l8ai4-lB4l4 
(gl01i-10au |£100i-101i) 

Xewdov'isn. g54J4-5«4 855^7 

(£30‘j^m) {<£5014-3114) 
Old Sor'rgnr gSSU-SJM • *56-37 

U»0tar«l>*I kE30!«-31l4). 
S20 Eagloi.... £275-278 - 18274^77 


•Nuih [Utes 


^ I0J&-H 

FOLLOWING up his comments Its go-ahead depends on secur- The group's 
from Namibia last Monday on the ing satisfactory uranium contracts equalled 520 ccms a shore unj 

RTZ group’s Rossing uranium which should not be difficult these the dividend was lified iu 223 

mine, Our Mining Editor, Kenneth days. Its capital cost has not yet cents (142p). Tlie current-year 

Marston, has been having a look been disclosed but it will prob- outlook is a lews buoyam but 

at the prospects for another abiy be not much under R250m. General Mining hopec at least to 
uranium project there. (£15Sm.). maintain overall profit-.-. Friday’s 

It is the General Mining group’s The question naturally arises of price was £16. 

Langer Heinrich deposit which is. how this can be financed against . 

also in the Namib desert some 50 the background of the strain on .J ,ars , P a ‘ so that an- 

miles south of Rossing. It is sur- General Mining's resources of the olh ® r South .-vfi icaJi 

rounded by the usual aura of Union Corporation acquisition and ven * l * re the Mountiun h:*se- 
secrecy but Marston believes that the general problems involved in JT etal .P r °J eL,t J n ih<? nortii-v\c>i 

a go-ahead decision couid be raising funds for South African 15 ® n schedule ror ' » pro- 

made in the not too distant ventures. duction targci of early i<t 

future, possibly before Namibia In Johannesburg Marion a shallow underground nunc at 

reaches independence at the end learned that General Mining's a ca P ,lal c °st of luSlm i-li.-imi. 

of the year. financial stringency has eased con- The co-venturers are America’s 

The ore deposit is not so large siderably as the pending 11177 Phelps Dodge along u itii Gold 
as Rossinis but is still thought to annual report should show. Fields of South Africa ami m 
be of substantia] size. Moreover, Helping the improvement has associate VogeMrutibuit 
its uranium grade is better with been the sale of investments. The Holdings. 

“guesstimates" putting it at U.S. dollar Joan has now been . „ 

about twice that of the very low- reduced to the point where there ,.^.“,1!, ' Tnn„m' e i I-V’ ° ? 
grade Rossing. is no real foreign exchange risk. 

is'SL 0 e e aii e to 0, InMe ^jS^pi^t „ U shou,d aJso be bor H ne fTlind - *n average "nei rcivmio "of 

K® jSSrSS S3® St"; ts s vavw-'s 

Sjmagh ^ ore i?of Ue abrasire lam ° ie Ws South African insur- silver are expected lo coniribuic 
uST&M I taftS region. JS? gr0up Wth ,lS Slronj5 “ sh about S5 fHT tenl ‘ 

It is thought that General Min- ' . The other metals arc roppCr and 

ing may risk Namibia's political He also drew a denial from zinc. Milling is planned to rise to 
uncertainties and start operations General Mining that it is in any i.6m tonnes per annum 
off on a small scale with the mine way in the running for a take- eventually, 
generating capital funds as it pro- over of Gold Fields of South Bljl _ b 

grosses ro avoiding the ‘big Africa as was at one lime ^n- invl^ 

initial financial commitment that rumoured. “" nt f s , 0 " ? er m ^uuVc in h 

would otherwise be necessary It does not want to increase , ™ ";, lu . rc m l" -1 - 

The General Mining group, its dependence on gold although dfvddinds \re 

which flow includes Union Cor- it estimates that the price the reor Ked^o^bi-dn un : Yl %.v vl-m^ 
poration, is already a substantia] will average a little above S175 J®** 

uranium producer accounting for this year rising to SI93 in 137D 

some 26 per cent, of South and Ola in 1980. proposals lor purchase oi niost of 

Africa’s output last year. Its mine General Mining under the guid- !£f v p^ ?r n m^err^i , r- r « V C rC " 

also turns out about 18 per cent, snee of Dr. \V. J. de Viiliers has ce, ' ed rroni smelters, 
of the country’s gold, 35 per cent undoubtedly acquired a new This, together with a belter 
of its platinum and 38 per cent dynamism in recent years. It con- product mix. is reckoned lo be Hie 
of the coal. siders itself to have completed reason why this project is mins 

Now the group, through Its coo- the consolidation phase that fol- ahead whereax ihe big nearby 
trol of Union Cocporation, has a lowed its move into Union Cor- Gamsberg lead-zinc wnturc hv 
new gold-uranium mine in pros- poration in 1975 and is now look- Anglo American and America’s 
pect at Palmietkuii away to the ing for new investment opportuni- Newmont has been pul nn ice 
south of the St Helena property, ties within South Africa. pending better metal prices. 


Public ignorant about Mote 
Insurers’ Bureau work 



KNOWLEDGE of the existence Then she was warned that that the bureau does not pay if 
of the Motor Insurers’ Bureau is she should not drive the car the claim is from a passenger ’ 
reasonably widespread, not con- away as she had no insurance who is the owner of the vehicle, 
fined just to motor insurers and and that if she wanted to take and “was using or causing or 
lawyers dealing with compensa- the car away she must find an permitting the vehicle to be 
tion claims. Yet the purpose and insured driver. She asked a Mr. used ” without insurance. “ know- 
the scope of the Bureau’s activl- Addo, whom she knew to be a ing or having reason to believe" 
ties are all too often misunder- motorist and he agreed lo drive that no insurance was in force, 
stood, so that, for example, com- tbe car. On the way from This provision in all conscience 
plaints are levelled against it Harwich there was an accident is surely right and proper, 
that it does not pay compensa- in Mrs. Porter was injured and The bureau got int.« court 
tion for property damage. for which, on the facts, Forbes J. because there was a complete 

Tbe bureau was established bv decided that Mr. Addo had been conflict of evidence between Mrs. 

agreement between the motor 5 ut ^° d you ^fj 11 *°? er a " d 11 Mr V Addo ° n ' vha j 

insurance market (companies guessed the point now— "Mr. had actual]} bei?n discussed 
and Lloyds’) and the Govern- Addo had . no third party insur- before the journey and whether 
raent in 1948. with the main ance covering his driving of other or not Mrs. Porter knew or had 
purpose of compensating victims people s cars. reason to believe that Mr. Addo 

of uninsured motorists injured ordinary course of had no insurance, 

on our roads Then very events **“* aspect would not have In the event, having heard the 
quickly, the bureau established Evolved the bureau in legal dis- evidence, the judge believed Mrs. 
rules for dealing with claims by put * ^ Mrs - Porter ’s c laim Porter, when she said that she 
the victims of untraced motorists. ™ w probably have been did not know that Mr. Addo was 
j . . handled like thousands of others not insured. He therefore ruled 

urn, ?L , k „ a “r ea f y 85 a against an uninsured that if Mr. Addo did not pay, 
r ?. * umb t i T or nmtor motorist. But. potting it simply, the Bureau . must satisfy Mrs. 
insurers failed, the bureau th e clause in question provides Porter’s claim, 
stepped- in to deal with thei 
injury claims that were in train 
against policyholders of those 
failed insurers. From time to 
time — and particularly recently 
— the operational rules of the 
bureau have been changed to 
ensure that assessment of com- 
pensation is made as fairly as 
possible, and is seen to be so 
made. There is an appeal system 
to enable disgruntled claimants 
to have their cases reviewed. 

The bureau's compensation 
funds are raised by levy, and 
motor insurers have to contri- 
bute proportionately to their 
premium incomes. In the past 
couple of years the annual out- 
lay of the bureau has been in 
tbe region of £4m, and the num- 
ber of applications for compen- 
sation continues to rise . each 

I have often felt that the 
bureau, like so many worthy 
insurance organisations, is among 
its own worst enemies, and over- 
shy of publicity. Would it not be 
in the bureau's interest to pub- 
lished and publicise each year a 
statement of its activities and a 
balance-sheet showing all that 
has been done in this most im- 
portant area of motor insurance 
public relations? 

Third party 

These thoughts were provoked 
last Thursday when I read the 
report of a motor injury com- 
pensation claim on which Forbes 
. had delivered judgment In the 
Queen's Bench Division the day 
before. The dispute in Porter v. 
MIB arose out of a little explored 
clause of the bureau's 1972 agree- 
ment with the Department of 
Transport. For those who want 
to pursue the point in detail, the 
clause in question Is 6 (I) (c) 


Let us stick to simple facts. 
Mrs. Porter had imported a- car 
and had it detained for some 
wbile at Harwich by the customs. 


Builders’ and Plumbers’ Merchants. 
Manufacturers of Bricks, Qay Roofing Tiles and Concrete 
Products. Road Haulage Contractors. 

Tear ended 31st December 1977 

1977 1976 




£ million 

9^ 9.9 







Road Haulage 







Interest paid 

' Special provision 

Group Profit (Loss) before 

Group Profit after Taxation 
and. Extraordinary Items 










(138,785) 803,713 




Preference Shares 
Ordinary Shares 

Earnings (Loss) per25p 
Ordinary Share 



( 0 . 82 p) 




Exports of Bricks and Roofing Tiles 507,000 


Broo m fl eet Works now has satisfactory orders for deliveries 
of both bricks and tiles to the Home and Continental markets, 
although the Building Industry in the United Kingdom is 
still depressed and a real revival is unlikely to come about 
until the second half of 1978. It is therefore with some 
confidence that 1 predict a return to more profitable trading 
in 1978s when I believe that the profit before tax trill be ia 
ecKcas of £1 million. • 

• R. Al. SPEIR, Chairman - 

Crossky Building Pro&ctsLsndud, P.O. Sox jj," StocktoK-on-Tctfj 


Arrwjnnn- l.aflS-1.406 Aigfearin, 
Brazil • M.S8-31.83 ffielgSosn 4, 

' ‘ U.S.‘ 5 In Vow wo G.6, =J 11.I4-1U.1S Umun oou- 

Gundaui V in A ear Tort r:feCL£»09 L >eat . S in Uil«u-370.7&..S7L 
' Sterling in IUIm IMMWS. 



■ Sternne 

U.^. Dollar 

. UulJti 

Wl* 'W, tierenan 
imhc oui 


944 101* 
IDfia 101* 
luto 11 
llh USa 
use iai B 


/>J-77 B 


d-81 a 


. 7to i'b 
77b 81b 

t*i a 


430 448 
41a «« 

5 5i* 


ifc-rs ; Sh-3Sb' 

Tol ! 5<4-dis . 

i* i 

17a 2 ! 3 £.*£ 

Qua-lionj;. 3.48,-8.468 
iran!...^! 125- Wl 

Kuwait..-.., 0-SOO4L61' 

LuxeaUi'n'’ S9-S0-WJO 

UaJay»uu-4 «.3M.5MIUJy 

k. z«ito»n.ni7-MwapHi.^, a ! 

Samll AttH. '/tftherl’nd 
Singapore - 4-23-4.25 (Norway 9.B6-I0 J6 

S. Am0U.. I^fc6d-1.5aiffiFondgal„. , 7BJ6 

! £P»in- 146-148 

C*n*d*. — . . lead 5*5-3.66 

esi , E- 3 - -y- JtBU.aai 

^ bento.; BSjmM iVujpBkrttj M' 
Rates ftte ArS''a tree nie. 
i One noOth 

Sew York. Q.M-O.^Oo-P”! 
itnam.1 . 0.5W).4Se-P* 
Aaj-t'dam 85 b- 16# '''P™ 
BmMcL-- 30-20 •■-r n » 

LVmVihirn - 2^ -4^4 Ort 
Fraartuft 3 t b - 1 t s pf pm 

Eon-FKacfa- depoaii rates; rauxUy BM1 ner owe serc#4ar nor eem Liaboa..— SBB-»S e. «l i» 

ODfrVKxnl) 384 wr (fetus Usrre-nHwib per cent: ox-moaU) K-tOi to vu: Madrid.... 23-100 i-.o» 
ooe-rear iou^-uit* to cent. Milan ..—.3-6 lire du 

-.ef* 8 ****” Soroflollar depMits. two years 87 is-S»m to cear; Unre OaJa_ M ._-m-3ta «*■“ 

8,1 four ,e#r8 SUtt-flWtt per cawi flee sears 8 Mi. oer cent. Fwia 8-3 f. pn» 

Tto foOnwins zmosial rates wera owted ter London ftriar cerUflcwes of Si'cklwlffl om pa 

ooMnnwa 7js>7.S3 pee cents, linw-maalk 7.7S-7£3 per r-ot : sJx^boeUi sjb-sjs Tlenna 13-3 ctBl’®*, j*3-22 graprn 

per nmt; .one-year BJ5-&U.p8r cetu Zurich..... 3te-2 s * j3-0 1 p m 

. call «r sfotiUS. VS. dollars and Canadian floDaxs: two “SU-mocih" forward dtdiar 277§jjsinpi5. 

dasr.JMtloa &r jaaterr and Swiss Eptnca, u^noam j.t>5^Sc P«4* 




f TS-195 c. din 
13 lire dia 

«-?M «■ pw 

This zdverilsemeM complies with ihe requirements of the Council of The Slock Exchange 
qfrke United Kingdom and the Republic of Ireland. 

The International Commercial Bank of China 

(Taipei, Taiwan, Repablk of China) 


Floating Sate Notes Due 1983 

' Issue Price 160 per cent , 

1 . The Managers include:- , 

Dflhm, Read Overseas Corporatw>if 

Amex Bgnc om Lushed BA Aaa- limited Chose Manhattan Asia Limited 

Gticorp Intern atinnal Bank Limited ■ Morgan Gh^r 311 ^ ^ Partners Limited 

Riyad Bank limited- ' 

The 2.00) Notes or US 810,000 each constituting the above'rssue have been admilicd lo ihe Official Lisi of 
The Stock Exchange ofthe United Kingdom and the Republic oflreland. Inierest k payable '^mt-anr.uaUv in 
arrears m May and November meaefa year, Ihe first such payment bring due in November. iy7ss, 

Partkalais of tbe Notes and the Issuer are available io ihe Exwl Siatisu'cal Scn’ice and copies may be obtained 
during normal business hours On any weekday (Saturdays and public holidays cwcptcdl up lo and including 
June 5, 1373 xrom:- 

May22, 1978 

Cnzanvo & Co^ 13 Tofcwihous* Yard. London EC2R 7.VN 


bias to Tories is unlikely 
boundaries approved 

BOUNDARY rrcnmmenriafiDns Tor tbe European Parliament 
elfetipiis lo hi* held in tin* UK on June 7 next year were 

published jesierday by ihc Biuiuilary Commissions for England 
and Wales'.' Those for Scotland will follow in about two weeks. 

The recommendations, winch have to be approved by Parlia- 
ment. show that if the main parties run neck and neck In opinion 
pulls the result would ho eienfy balanced between Conservatives 
and Labour. Some Labour politicians bad feared there would 
be an in -built bias towards lire Tories. 

The commissions tried to ensure (hat Uie 66 constituencies 
in England mid the four in Wales are as near to an average 
electorate of 516,000 as possible. 

This ha* meant nierqin;; lieiween six and ten Westminster 
constituencies. Uigurs i of the proposed seats is Hampshire West 
with 57(1. ITU voters and the smallest Lancashire East with 466,393. 

Voting in tbe |ir*i direct elections will he on the existing 
simple majority system operating at Westminster, which means 
lhai the Liberals have almost no chance or securing a seal. 

Tiu* titteniion is in standardise procedures for all Community 
countries in. subsequent elections. The detailed list for England 
and Wales is as follows: 

Northumbria •rt.s.ioraU' .'17 *;;;> inrtuilr* 
p.irlianii.-ni.irj ■.iiir-.tiniriii.-irN F-> m- K- 
■ i|iiiil-Ti« t.ljih 1 1 .-sTiu in Murir.-ili. 

upnii Tyii. i.j-uirjl. \..«c isi 
uoun Tyn>- Ea-i \i-wu4lh uonu T'.lu' 
Vurih. Xl-HiaIh 1 upon Till'.- W. -SI 

South Tyne and Wear ..'•ns Mil. in. Iihl- j 
F.l.ijdmi. Wau-^K.iiJ ■! ,-ii'l 

W.-sl. J,irruv. S-HirTi !!hhl>l‘. SniM.-rtund 
\..rlh Sun. Id, mil Si'ulh. Tyiuiuouili 

Cumbria •a.'-L'ilti mi-luiL-a P.,rrnvr.|:i- 
Purni v>. fjrli'l-- l .irv jMit UoreiMiuti.- 
and lAiivutalf. \.inli UMi.. FVnrtilt aid 
ihr Ronl.r. W'vNiniurljnd Whui.-hutiMi 
Vt'nrt- Julian. 

Durbam pi -hop Am K ■ 

land. CfttUi-r-h -Sir.-i I. >.nn<.ii D-irliii;:- 
Kin. Durham lluii<:ht»ti-U..-Spnnii Vunli 
Wi-si lMirlum Kikhniiind. 

Cleveland ■ osj. ip' rl.-ivl.inil 
and Whiih'- K.i -iiikiuii Uarll.-ciniil. 
tHiruivh Ti , '-'-s|i|. .M ld.ll'.'-.Dr<JiluJi. T- 
«ido KvdiMf. Tc-.-i •! J.- Smchiuii. T.-rs.itl. 

Yarkihirc Central • ITt.ilT*.- inlud— > 
Rarfcsiun A'h. tlmtle. Il.irroii.iiy. Ripuii. 
Stiplnli. Tlursl- m:d M.ilinn York. 

Humberside i.'si-’i VW* iii.-]u<I,-s BrMIJi.ri- 
mn. Ring's .nid Siimtliurin-. . 
llnu'd.-n. KlliS'*"n mam 1 1 Mil Cuniral. 
KincM.jii ilium Hull East. Kin-L^lnn upon 
Hill! tV. ■•I. 

Lancashire Central • '>.7,'-.Vj . liulndi-i 
r.l.M-kpiMil V.irili Kldikpool S.imli. Cborlei. North, rrosuin South. South 
Hide. Wesihoustilon. Wiean. 

Lancaster East >46o.iW. includes 
A*- rlninon. Blji+burn. Eurnlvy. Cllthome. 
Djru-.’ii, Harwood and Kuyton. Nelson 
.in. I Cnlno. Rossendali- 

Yorkshire West .tflJ.WI i Includes Brad- 
turd North. Bradford South. Bradford 
w.^.i. Brie house and Spenboroneh. 
Halifax. Keighley . Shipley. Sowerby. 

Leeds U4*. -1 771 1 includes Bailey and 
’lories. Leeds Easl. Leeds North East, 
[* N’onh West. Lwds souih. Leeds 
South East. Leeds West. Fuds-.-y. 

Liverpool i4r«.2W> includes Boorle. 
I.iv.rpool E.lSe 11)11. Liverpool Cannon, 
l.ii/rpooi Kirkdaii-. Liverpool Scotland 
Ktifiinsr. Liverpool Toxtelh. Liverpool 
lt'jlton. Lirerponl Warertme. Liverpool 
vv. -.i D.-rtiy. 

Lancashire <.»»7.72Ki Includes 
i rosl>y. Ilntion. Inc-.- Hnrwltirfc. Si. 
il.-l.-ns. Southport. Wl.lnes. 

Greater Manchester West 'MS <H0i 
iik.I'iJcs Vermeil am and Sal*-. Bolton East. 
Union West, Ecl-Ips. J : am worth. Lr?jeh. 
S.i f.irrt East, Salford West. SirelFord. 

Creator Manchester Sooth iSi2.?Wi 
iii- :udvs Chead).’ Manchester Ardu-luk. 
'.lari' hwer Bl-ivkley. Muiu hesi.-r C>.-mral. 
M jueh'.-si'.-r Mu»S Side. Manchester Open- 
shn» Manchester wiihmgion. MancTtesrer 
W> ‘|i -nshawe. Stothiun North. Stockport 

Creator Manchester North isfrLfW) 
Includes Ashi on-unde r-Lync. Bury and 
Kaddlffe. MjErttostor Gorton. Middleton 
and Prestvnett, Oldham East. Oldham 
Wesu Rochdale. Sisrlybrldise and Bydr. 

Yorkshire Sooth West ■ 498.034. indodes 
Colne Valley. Dewsbury. Hemswonh. 
Huddersfield East. Hnddecsfieid West. 
Normamon. Pontedract and Casdeford. 
and Wakefield. 

Yorkshire South <fftl.£g> lndudea 
Barnsley. Dearne Valley. Doncaster. Don 
Valley. PcDlstooe, Rotherham. Rotfier 

Cheshire West (503.4U) Includes Bebtng- 
tnn and ENesmere Port. Birkenhead. City 
of Chester. Naiwlch, Northwich. Wallasey, 
and wirraL 

Cheshire East 1494.759 ■ includes ircwe 
Hazel Grove, Knutsford, Macclesfield, 
Neuron. Runcorn. . Warrlnston. 

Derbyshire i525JM> Includes Belper, 
Bolsovcr. Derby North. Derby South. 
High Peak. Ilkeston. South East Derby- 
shire. West Derbyshire. 

Sheffield 1 519,4*1 ■ Includes Chesterfield. 
Nunb East Derbyshire. Sheffield Atter- 
tUffr. Sheffield Rnsbtsldi.'- Sheffield 
HaUam. Sheffield Keeley. Sheffield Hllis- 
borohgh. Sheffield Park. 

Nottingham (501.797 > includes Ash held. 
Bas&etlav, Beeston. MausfieM. Notting- 
ham Ease Nottingham North, Notti n g ham 

Lincolnshire U77.7WI Includes Gam^ 
borough. Grantham. Grimsby. Houana 
with Boston. Horn castle. Lincoln. Louth. 

Salop and Stafford <475.«*> Includes 
Ludlow. Newcastle-under-Lyme. Owestty. 
Shrewsbury. South West Staff ordshlre, 
Stafford and Stone. Tbe Wretin. . . 

Staffontshtre East i3M.9K» includes 
Burton. Cannock. Leek. Lichfield and 
Tamwonh. Slake on Trent Central- Stoke 
on Trent Norib, Sioke on Trent Sooth. 

Mid lands West (544.449 < Indodes Dudley 
East. Dudley West. Halesowen and Stoiu^ 
bridge. Walsall North. Walsall South. 
Wolverhampton North East. Wolverhamp- 
ton South East. Wolverhampton South 

Birmingham North ( 543.088 1 Indodes 
Aid ridge- Brwnhills. Birmingham Erdlng- 
ton. Birmingham Perry Barr. Birmingham 
Stechford. Sutton Coldfidd. Worley East. 
Wirier West. West Bromwich East. West 
Brom inch West. 

Birmingham Sooth • 519,555' Includes 
Birmingham Edgbastoo. Birmingham Hall 
Green. Birmingham Handsworth- Birming- 
ham Ladnvood. -Birmingham Nonbfield. 
Birmingham Selly Oak. Birmingham Small 
Heath. Birmingham Spark brook. Birming- 
ham Yardler. 

Midlands East (470.656 > Includes Blaby. 

Bosworth. Loughho rough, Meriden, Nun- 
eaton. Rugby. 

Leicester (3CB-T83i includes Carl Ion. 
Leicester East, Leicester South. Leicester 
West, Uehon. Newark. Rushch ff e. 

CawbH^aeblre (543.497) indodes Cam- 
brldse. Cambridgeshire, aumingdonsbire. 
Isle of Ely, Peterborough. Rutland and 
Stamford, WefflnBboTOUBh. 

Norfolk (495.7S4> includes North Nor- 
folk. Norib West Norfolk. Norwich North. 
Norwich scam, South Norfolk. South West 
Norfolk, Yarmouth. 

Sufrwk (5UL420) includes Bury Sc 
Edmunds, Bye. Harwich, Ipswich, 
Lowestoft. Sudbury and WooBirtdge. 

Hereford and Worcester (506J3JI in- 
cludes Bramsgrovc and Heddltch. Here- 
ford. Kidder minst er. Leominster- Soutb 
Worcestershire. West Cloucestcrshlr*. and 

The CraanMi i acrs? ■ Includes Ban- 
bury. Cbettfinham. Cirencester and 

Tewkesbury. Gloucester, Mld-Oxou, 
Oxford, Stroud. 

MhUands Contral (47S-413I Includes 
Coventry North East. Coventry Norib 
West, Coventry south East. Coventry 
South West, SofehuU. Stratford-on-Avon, 
Warwick and Leamington. 

Northamptonshire <510.007) Includes 
Aylesbury. Bucfctngham. DavedOT. Har- 
boroagh. Kottering, Northampton North, 
Northampton South. 

Tbe ailtaru 1 54O.0O6> Includes Bemel 
Hempstead. Luton Eaa. Luton West. St 
Albans. South Bedfordshire. South Hert- 
fordshire. South West Hertfordshire, and 

Bedford asd Hertford <479.333) Indodes 
Bedford, Earn Hertfordshire. Hertford and 
Stevenage. Hit ch m mid-Bedfordshire. 
Welwyn and Hatfield. 

Essex Soutb west (468.638) Includes 
BasUdoo. Brentwood and Ongar. Chelms- 
ford. Epplng forest. Harlow, and Thur- 

Essex North East (491.103) Includes 
Bra'niree. CoidMstcr. Maldon. Saffron 
Walden. South East Essex. Southend East. 
Southend Wen. 

Bristol <5KL2<8i includes Bristol North 
East. Bristol North Wi-st. Bristol South. 
Bristol South Bast. Bristol West. Chippen- 
ham. KlngswotxL South Gloucestershire. 

Upper Thames i&o.TSfi includes Abing- 
don. Devizes. Hetticr- Newbury. Reading 
North. Reading South. Swindon. 

Thames Valley I518.35H includes 
BeecouK&ild: Chesham and .vmersham, 
Eton and Slough, sp^lthomc. Windsor and 
Maidenhead, Wokingham. IV y combe. 

Cornwall and Plymouth (4S3.e<S> 

Includes Bodmin. Falmouth and Camborne. 
North Cornwall, Plymouth Devon port. 
Plymouth Crake, Pfj month Strtton. El 
I ves, and Truro. 

Devon (523.147) includes Exeter, 
Horn ton, North Devon, Tiverton. Torbay, 
Totncs. and West .Devon. 

Somerset (535.131) indodes Hath, 
Bridgwater. North Somerset, Taunton. 
Walls, Weston-super-Mare. YeovfL 

Wobecjc (545488) isdudes Bournemouth 
East. Bournemouth West. Christchurch 
and Lymlngton, ' North Dorset. Poole, 
Soutb Dorset, Wesrbury. WeM Dorset. 

Hampshire West (570.173) Includes 
BaohigztPtee. EasOelgt. New Forest, 
Salisbury, Sonthanmton lichen. Sonthaznp- 
ton Test, and Winchester. 

Wight and Hampshire East ('563.533) 
mdodlng Aldershot. Farebam, Farcham, 
Gosport, tale of Wight, Pciorsfield, Parte- 
mouth North. Portsmouth South. 

Surrey (SUS.iSO) includes Cheruey and 
Walton. DortrtssL. Epsom and EweU, Esher, 
Guildford. North West Surrey, Reigale, 
and Woldng. 

Sussex West >543^14) Includes Arundel. 
Chichester. Havant and - Waterloo, 
Horsham and Gravies-, mid -Sussex, Shore- 
barn and Worthing. 

Sussex East (531,113) includes Brighton 
Kempt own. Brighton Pavilion. Eastbourne, 
East Grins cad, Hastings, Hove, Lewes. 

Kurt West (564,774) Includes Dartford, 
East Surrey. Gillingham. Gravesend. 
Rochester and re»n»«w, Royal Tunbridge 
Weils. Seven oaks, Tonbridge and Mailing. 

Kent East (554,783 1 Includes Ashford, 
Canterbury, Dover and DeaL Favershara, 
Folkestone and Hythe, Maidstone, Thanet 
East, and Thanet West. 

London West <529,106 1 Includes Ealing 
Acton, Ealing North. Ealing Soothall. 
Hillingdon, Hayes and Harllngton Hilling- 
don. Rnisifp NorUiwood Hillingdon. 
Uxbridge Hounslow, Brentford and Isle- 
worth Hounslow. FeJiham and Heston. 

Loudon North West (510.4S3i Includes 
Rtmet diicolng Barnet. Baro“t Hendon 
North, Barnet. Hendon Sooth, Brent East, 
Be mu North. Brent Smith. Harrow 
Cenml. Harrow East, Harrow West 

London Central (519 331 1 inctadea 
Camden Hampstead. Camden Holborn 
and St. Pancras Sooth. Camden St. 
Pmcras North. City of London asd West- 
minster South. City of Westminster 
Paddington. City or Westminster St. 
Maryiebone. Hammersmith, Fulham. 
Hammersmith North. Kensington and 
mol?— Tieisea Kensington and Chelsea, 

Landau North (54634) Indtutes Burnet 
Finchley, Enfield Southgate. Hackney 
Central, Hackney 'North and Stoko New- 
ington. Hackney South and Shoreditch. 
Haringey Hornsey, Haringey Tottenham 
Haringey Wood Green, Islington Contral 
Islington North, Islington South and 


London North East (53L8391 indodes 
Enfield Edmonton, Enfield North, New 
ham North West, Newham Sooth, Tower 
Hamlets, Bethnal Green and Bow. Tower 
Hamlets stepney and Poplar, ' Waltham 
Forest ChingfOrd. Waltham Forest 
Leyton. Waltham forest, Walthamstow. 

Loudon East (546.333) indodes Harking, 
Bartdna Dagenham. Havering Hornchurch, 
Havering Romford. Havering Upminster. 
Newham North East, Redbridge Ilford 
North, Redbridge Ilford South, Redbridge 
Wonstead and Woodford. 

Loudon South West 1323.815) Indodes 
Kingston upon Thames. Kingston upon 
Thames Surbiton. Lambeth Central, 
Lambeth VauxbaU. Richmond noon 
Thames Richmond,' Richmond upon 
Thames Twickenham. Wandsworth Batter- 
sea North. Wandsworth Battersea South. 
Wandsworth Putney. Wandsworth Tooting. 

London South (506JS2) hi dudes Croydon 
Central. Croydon North East. Croydon 
North West. Croydon South. Merton 
Mitcham and Marten, Merton Wimbledon, 
Suttaa and Cheats. Sutton Carshahon. 

London, South loner <533,479) includes 
Greenwich. Lambeth Norwood. Lambeth 
StzeaUuuni Lewisham Deptford. Lewisham 
East. Lewisham West, Southwark 
Bermondsey, Southwark Dulwich, South- 
wark Peckham. 

London South East (500,717) technics 
Bexley Bexlcyheath, BcxIct Erirlt and 
Crayford. Bexley Stdcop, Bromley 
Beckenham, Bromley, Chlstehurot, 
Bromley Orpington. Bromley Raveoa- 
bourne, Greenwich Woolwich East, Green- 
wich Woolwich West. 

North wales (488.731) includes Anglesey, 
Caernarvon Conway, Denbigh, West rant. 
East Flint, Merioneth, Wrexham, a nd 

Mid and West Wales (4S6B1B1 Includes 
Cardigan. Brecon and Radnor. Pembroke, 
Carmarthen. Llanelli. Gower,- Swansea 
Wesr. and Swansea East. 

South East Water (546,3311 bchxles 
Rhondda, Abertaro, Merthyr Tydfil, Caer- 
philly. Ebbw Vale. Bedwelty. AbertlBery, 
Pontypool. Newport and ManmombL 

South Wales 1533034) Indodes Neath. 
A be ra von. Ogmare. Pontypridd. Barry. 
Cardiff North West. Cardiff North. Cardiff 
West and Cardiff South East 

Lord Eoyd-Carpenter 


Strong contribution from Australian 
subsidiary-UK Market maintained 

1977 would have been a memorable year 
in the Company's history even if I had not 
been able to report, as I can. that our 
results for 1977 produced a record profit. 
This resulted from a combination of a 
measure of success in a far from easy 
United Kingdom market combined with a 
substantial improvement in the results 
obtained from our Western Australian 

Economic Background in the 

1977 was a very difficult year both for the 
building industry and for the United 
Kingdom economy as a whole. Lack of 
confidence, in large measure created by 
inept Governmental interference in in- 
dustry, was reflected both in lack of 
growth and lack of investment In addition 
the Government themselves belatedly 
recognised that, as l pointed out in my 
speech last year, they had made a serious 
mistake in concentrating economies in 
public expenditure on capital investment, 
particularly on construction. In a praise- 
worthy attempt to minimise the damage 
they had themselves created, the Govern- 
ment made successive announcements of 
a reversal of this policy by way of 
increasing provision for investment' in 
construction in the public sector. This 
increased provision has so far however 
been both modest in scale and slow to 
take effect, and the public sector of 
construction still operates on a fairly 
modest scale. In the private sector the 
lack of confidence to which I have 
referred above has similarly restricted 

In both public and private sector there 
will be no real revival until either the 
present Government or its successor takes 
fiscal and other steps to revive' confidence 
and give to industry and Those who invest- 
in it a reasonable anticipation both that 
they will be allowed to make profits and to 
retain a reasonable share of them if they 
make them. 

In These circumstances your Company 
has done well in a depressed United 
Kingdom market to earn after allowing for 
inflation a modest return on capital 
investment in serving that market It is 
hoped that the activities of the Price 
Commission, so long as it continues, will 
not be permitted to interfere unduly with 
the earning of such a return. 


Last year I commented that overseas the 
prospect was bright. This Turned out to be 
an understatement. Our Australian sub- 
sidiary, Cockbum Cement Limited, has 
greatly increased its sales and its profit- 
ability and as a result of its further contract 
for the supply of lime to Alcoa for 1 5 years, 
has secured a good market for a long time 

Compagnie Mnanciere pour fa 
Recherche et le Developpement 

We entered towards the close of the year 
into a 50:50 partnership with Societe des 
Ciments Francais in the ownership of the 
above named company. The object of this 
.operation was to co-ordinate our efforts 
with those of Ciments Francais in overseas 

activities including investment and the 
exploitation of our expertise in con- 
sultancy work. 

We believe that in co-operation with 
them we can obtain remunerative con- 
sultancy and related work in many parts of 
the world and that* an Anglo-French 
partnership has a number of advantages 
in the obtaining and carrying out of such 






Group Turnover 



Profit before Taxation 






Earnings a share 
Ordinary Shares: 



Nil Distribution 



Net Distribution 
Participating (n/v) 

9.1 p 


Nil Distribution 

5.1 p 


Net Distribution 
Total Dividend:— 



Ordinary Shares 


3.141 p 

Participating (n/v) 





68 63 70 71 72 


y. r -\ 

. -V. 1 ? ‘ ' 1 'I' . fmmT - I 

.■ v-i'. * 

68 TO 7i 72 73 7* 75 76 77 

Developments in the U.K. 

In the UX we have proceeded with our 
large investments at Rochester and 
Southam. Ours is an energy intensive 
industry and a major purpose of these 
modernisations and improvements has 
been to enable us to operate processes 
which are more economical in the use of 
energy. A further advantage is also an 
increase in capacity which will be of great 
value to us when the United Kingdom 
economy improves. 

The Rom River Company, a leading 
supplier of steel reinforcement suffered 
from the further decline in construction 
activity during 1977 which put the whole 
reinforcement industry under great com- 
petitive strain and profits earned by Rom 
River were at a greatly reduced level 
compared to 1976. In July Rom River 
purchased Beny's Engineering, a well- 
established private company producing 
accessories used in connection with steel 
reinforcement, now re-named Berry's 
Rebar Components Ltd. 


As I have mentioned abovethis has been a 
difficult year in the United Kingdom. The 
fact that we have not only survived it but 
in some measure prospered and been able 
to produce the satisfactory results which I 
mentioned at the beginning of this speech 
was only made possible by the hard work, 
adaptability and devotion to duty of all 
who work in the Company at all levels. 

I would like to thank all who work for 
our Company .for their splendid efforts 
last year. As I go round our various plants, 

J am much impressed by the number of 
men who have worked with us for very 
long periods indeed, as by the nurnber of 
members of the same families who work 
with us. This is an encouraging indication 
of the good spirit and high morale which 
prevails. . 

Capital Structure 

The Board proposes to modernise the 
capital structure of the Company so as to 
simplify the system of shareholding and to 
secure that all shareholders are on an 
equal basis and able to vote about the 
affairs of the Company, These changes 
are of major importance to the future 
development and well-being of the 

The Outlook 

Despite the appalling weather at the 
beginning of the present year, and the 
many problems which affect and afflict 
our country and our industry, there are 
modest but reassuring signs of recovery in 
construction in the United Kingdom, and 
so of -demand for our product while in 
Australia the outlook continues to be 



Copies of- the Report and Accounts 
containing the fuif Statement by the 
Chairman can be obtained from the 
Secretary, The Rugby Portland Cement 
Company Limited, Crown House, Rugby . 

Financial Ti mes Monday Mar §5 TO7§ 




KWJre is eiven to shareholders that following a resolution passed 

a dividend for the year 1977 will be paid to them as from 
22nd May 1978. as follows: 

per share 

less Swiss federal withholding tax of 35 r o 

Frs. 72.— 

Frs. 25.20 

or net 

Frs. 46.80 

against delivery of coup on No. 2t. 

This amount is payable in Swiss Francs. Paying Agents outside 
Switzerland will pay in the currency oF the Country m which 
the coupons are presented, at the rata of exchange on the day 
of presentation. 

Coupon No. 21 may be presented as from 22nd May 1978. to the 
following Paying Agents of the Company: 

in Switzerland; 

Swiss Credit Bank. Zurich, and its branches. 

Swiss Bank Corporation, Basie, and its branches. 

Union Bank of Switzerland, Zurich, and its branches, 

Banque Populaire Suisse, Berne, and its branches. 

Banque Cantonale Vaudoise. Lausanne, and its branches and 
agencies. . 

Banque Cantonale de Zurich. Zurich, and its branches* 
Banque Cantonale de Berne. Berne, and its branches, 
Banque Cantonale Zougoise, Zoug, and its branches. 

Banque de i’Etat de Fribourg, Fribourg, and iu agencies, 
Darier & Cie. Geneva, 

Lombard Odier & Cie, Geneva, 

Pictet & Cie, Geneva. 

Handelsbank N.W., Zurich. 

Bank Leu Led.. Zurich, and its branches. 

In England: 

Swiss Bank Corporation. London, 

Swiss Credir Bank. London, 

Unfen Bank of Switzerland. London. 

In the United States of America : 

Morgan Guaranty Trust Company of New York, New York, 
Swiss Credit Bank, New York. 

Swiss Bank Corporation, New York. 

In France: 

Credit Commercial de France, Paris. 

Banque de Paris ec des Pays-Bas. Paris. 

In Germany; 

Oresdner Bank AG. Frankfurt/Main and Dusseldorf. 
in Holland: 

Pierson, Heldrtng & Pierson, Amsterdam. 

In Austria: 

Girozentrale und Bank der Osterreichischen Sparfcassen AG, 

Cham and Vevey. 
18th May 1978 

The Board of Directors 




Notice is given to shareho'ders that following a resolution passed 
by the Board of Directors on 10th May 1978. 

a dividend for the year 1977 of $5 JO 

per common share will be paid to them as from 22nd May. 1978, 
upon delivery of coupon No- 2? and this in accordance with the 
provisions of the Articles of Incorporation. 

This .'dividend is payable in U.S. dollars. Paying Agents outside 
the United States will pay in the currency of the country in 
which the coupons are presented, at the rate of exchange on 
the day of presentation. 

Coupon No. 21 may be presented as from 22nd May 1978, to 
the Paying Agents indicated in the notice of Nestle 5.A. bearing 
the same date In accordance with the Articles of incorporation 
of the Company, it should be presented for payment at the same 
time as dividend coupon No. 21 of Nestlfi S.A. bearing the same 
number as the corresponding Unilac, Inc. share. 

Panama City- 

18th May 1978 The Board of Directors 

Soci£t£ Anonyme 
37, rue Notre-Dame Luxembourg 
R. G. Luxembourg B 8360 

A dlvMmd of USS0.13 (13 cents ) will be payable as from May 17th, 1976 
to shares outstanding as at April Mch, 1978. against surrender of coupon no. 8. 

By order oF the Board oF Directors 

" , The Secretary 


the IZSth Annual General Meeting 
or the. Members of the Society will 
be heM >l MGM Haute. Heenc Road. 
Worthing. WeM Suwc*. on Wednes- 
day, am June. 197B. at 12.30 o.m. 
tor the following nurnoses: — 

1. To receive the Reoort of the Direc- 
tors and the Accounts tor ore year 
ended 31K December. 1977, 

2. To elect Directors. 

3. To re*aw*oinc the Society’s Auditors 
and to . authorise the Directors to 
.toe their ■ remuneration. 

4. To transact airy other ordinary 
business of an Annual General 
Meeting. „ 

. Each Member may attend and vote 
in person or by proxy at meetings 
of the Society- A proxy need not 
be a Member of the Society. 

By Order of the Directors. 

MGM Ho^ W ro « D - **"**'*- 
Heene Road. 


West Sussex BN11 ZDY. 

17th May, 197B. 


Wars rtsht up until Northern Ireland 
today mean that hundreds or thousands 
of war victims still exist. Ex-servtas 
nwn. widows, orphans deBperalelr 
need homes, jobs. rood, furl and other 
essentials the annual Poppy Appeal 
Alone caunoi possibly pay (or. Please 
send dona Cions to: 

The Royal British Lmlwn. 

Maidstone. Rum. ME20 7NX 


“to? 2y N fJ5^ 

^Rd^wV^' LW - 103 S ^ 

MERCEDES 206 diesel. Autobarn Motof 
Caravan by Banbar. 197a. Ki dm, 
ZA .000 miles. Fourth berth, eaicitatty 

SS'KF 1, ts!Sn r,di $i, w"t V 

tow-tar. CS.SQD, Tel. Bentley 0420 


EVE. 1B9. Repent St. 734 OSS? a „ 
Carte or AH-in Menu. Three Soectaeuilr 
noor show* 10.43. 12.45 arid 1 * 4 S ini 
multe Of Johnny HawhcsworthV Fnn ^fa. 

Mon^-Frl. Closed Saturdays. 01^37 6455 



Weeie acknowledge with a gift Mi 
General Secretary 
D. ]. Lafferty. MBE. JP 
„ u , Roy*! Alfred Seafarer* Society 
Wcuan Acrei,- Wood mint tern* Lilt* 
Ban tread. Surrey SM7 3HB 


B F(?PLaiw 4 P*«BY. 19. Cork SL. 

1o.ooJ^ l i. 3 o Mo,, - Fr, ■ lO-w-MO' **■ 

*™?NTv TE l5 , ie,^ Loan 


|SS ®: K M4Sffi’W! , a , 3F.S 

Nm •Sf*"" Appeal Fund- I 47 ' 

New Bond Street. W.i. 

C BRIT?eu 11, 0,< * • ODd Tm 


Commercial and Industrial Property 
Residential Property ^ 


'Businesses for Saie/WamS?” Capacity « 

^PeregnaL^Garden^g 113 ® 1 * & Tenders - 
Hotels and Travel 
Book Publishers 

Premium positions available 
ni.mmum size « column ems,) . r 
E1.50 per single column cmi extra 
or further details iprite lo: 

Financial Advertisement Manager, 

- ^ es ’ 10 » Cannon Street, EC4P 4B*‘ 



r.-' c«* 


4.50 ' . 




450 - 


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4 .25 ‘ - 






Financial Times Monday May 22 1978 


Monday May 22 1978 

With the depression of 1975 and 1976 now 
firmly behind it, the UK trailer industry is looking forward 
to a period of steady expansion. Even so manufacturers feel that prospects, particularly overseas, 

are not as bright as a year ago, and there has been some 
decline in the Middle East market. 






Q. I have always bought chassis vans. Why change to 
frameless construction? 

A. The frameless van gives you more cube and more 

Q. But surely you lose rigidity and strength when you leave 
out a chassis? 

A On the contrary the Freightmaster's monocoque 
construction is amazingly tough. It's the same principle as an 
aircraft's fuselage. Inherent strength without weight. 

Q. But the floor must be weaker; mustn’t it? . 

A We put our T beam cross-members at 12" centres. 

You can run a loaded fork-lift the length of the van. 

Q. Do you save weight by using thin alurninium in the 
side walls? 

A. No. We use thicker panels than normal for extra cargo 

Q. How about protection from the elements? And 

A The Freighimaster is watertight The drum- 
tight. one piece aluminium roof has all its rivets 
outside the cargo area. The doors are the 
same as those used on ocean-going 
containers and we use special 
seals. And the patented raised rear 
header not only allows you to load up 
to the full height of the van, but it also 
incorporates a rain 
channel to force 
water away from 
the doors. 

Q. What protection do I get? 

A We guarantee the Freightmaster for materials and 
workmanship for 12 months. ■ 

Q. What about after that? 

A York have 12 factory branches in the UX and a European 
network that is the envy of the industry 

0. Talking about the EEC, does your van conform to all the 

A Yes. We've been in Europe for 16 years. And, thinking 
ahead, the current Freightmaster is designed for 44 tonnes 

0- How long can I expect my van to last? 

A. We built the country's first frameless semi-trailer van in 
1959. It's still hard at work. 

0- How well does your van hold its value? 

A Look at the used-trailer ads. 

0- What’s this Hobo axle? 

A It's unique. And a genuine fuel and tyre saver. Basically 
it's a lifting axle which converts your tandem to a single 
when you’re running half laden or empty It’s an option you 
can get only from York. 

■ 0. Surely I can buy a cheaper van from someone else? 

A Yes, but you get what you'pay for It has always been 
York's policy to build up to a specification and not down to 
a price. 

Q. Fair point but how long would I have to wait for delivery? 
A At the moment we can supply standard vans from stock. 

Q. Where do I place my order? 

A. York Trailer Company Limited, Northallerton, North 
Yorkshire. Telephone; Northallerton .3 155. Telex; 58600. 


An uphill climb 

out of recession 

A Bona Hack Coldsaver i above) trailer built for Unifast International Forward- 
ing's refrigerated service between the UK and the Midle East. Below is a York 

Social animal transporter. 


; • -Tv . vtX 


Designing for 


THE PROBLEMS of improving 
the design of such a basic piece 
of equipment as a trailer while 
keeping cost low and durability 
high have increased over recent 
years to file point where fine 
chiselling has become the order 
of the day. 

Tile more efficient use of. trac- 
tors coupled with the need to 
keep payloads high have pro- 
duced lifting axles, or de- 
mountable bodies, but there has 
been no technical revolution and 
engineers are still more con- 
cerned with meeting various 
sets of regulations and adding 
sophisticated ancillary elec- 
tronic equipment than they are 
with re-inventing the wheel. 

While there are always hopes 
that a new material will burst 
on the scene, as light as balsa, 
a* strong as steel, and as cheap 
a* plastic, there are no signs 
that there is a breakthrough 
around the i-orner. 

walk a fine tightrope between 
weight-saving and loss of 
strength and rv/jgedness while 
European builders are able to 
beef up their product in 
anticipation of overuse. 

And with materials account- 
ing for about 70 per cent of a 
trailer s cost great care has to 
be taken in a price-sensitive 
market not to push the overall 
cost too far out of line with 
the competition. 

On of the areas showing great 
benefit is the development of 
aerofoils. If one tries to run 
along with a sheet of hardboard 
similar to the area of the front 
of a lorry and trailer the resis- 
tance would be phenomenal. 
Yet comparatively few lorries 
use aerofoils despite the wide- 
spread research into airstreams 
which have had an influence on 
car designs. 


Admittedly there lias heen a 
growl h in (he use of aluminium 
and a hi nun 1 1 mi alloys for tipper 
trailers, and .selective use of 
aiummuim in ordinary articu- 
lated I rail ns and boxes can 
produce appreciable savings. 

Bur : lie re i>- a limit to its use 
on cu>l grounds and there are 
still Nome niggling problems 
with fatigue and welding 
quality, though these have now 
been largely overcome. One of 
the problems in Britain has 
been the careful control of 
vehicle weights. While their 
Con; menial partners take a 
more generous view on loading, 
the UK police keep a watchful 
eye. ,<o every pound extra in a 
I’K trailer i> a pound of pay- 
load lost. This has meant that 
the trailer builders have had to 

It has been estimated that 
efficient aerodynamics can lead 
to a reduction of 10 per cent, 
in consumption of diesel fuel, a 
saving that would have engine 
manufacturers jumping up aud 
down with wild excitement. 
There are some very futuristic 
designs on ilie walls of senior 
designers m the truck industry, 
hut actuality seems a long way 

The attempt to minimise tyre 
friction seems to cunflict with 
the wish ii»r adhesion but York 
has developed the Hobo lifting 
axle so that when a trailer is 
under light load or unladen a 
whole set uf wheels can be taken 
out of use with, says the com- 
pany. a further saving of about 
4 per cent in diesel fuel. 

Sa far there has been little 
market enthusiasm for the 

The most cost-effective 
goods vehicle on the 

Can cost less to 
buy per week 
than hire of a 
van per day 

Will give your car the capacity | van per day 
of a 35 cwt van- at a fraction 

of the cost... TrjriljBox ZOO. built ro superb standard* of 
oiitcr.iii and craftsmanship, is easily ttwwl by any vehicle over lOOOcc. 
L.eht**i£hs for cate of handling but ©» immense «ren£sli in canstruccion 
with onc-piccti jeamleas walls of white J.r.p. o. hr^h impact rcslmntc 
and eaany cleaned alloy plank B >ar. 

A spacious, quat'tr 
20*cu. ft. aid 18 inches Boor 
hri£hc. Guaranteeing long service 
under arduous conditions. 

Also TrailaBo* 4D0. As duraWo 
as the. 200 bur |i*i"S ■MOcii. It 

Tax deductible and saves on 
Driver wages ft Inwaice. 

Minimal operating, main- 
tenance ft depreciation costs. 

No Road Fund Licence 

No Operators Licence required. 

For full information on TrailaBo*. 
phone Preston 22*01 or post 
coupon today 

Please send more TrailaBo* information! 

Costs less than half the price 
of a van of similar capacity. 

Minimum deposit ft bo 
deposit credit terms available. 


duttgn-forsha w 



super single, a wide single tyre 
instead of twin wheels on rear 
axles. But some South Coast 
petroleum tankers have run 
well on them and it is possible 
that this will be an idea that 
will be taken up again. 

Taking the lorry as a whole 
it seemed that the greatest 
savings in weight would have to 
be made by the tractor manu- 
facturers. but In fact it is the 
trailer builders who are con- 
stantly required to compensate 
for the excesses of their 
mechanical spouses. 

Some of the specialist builders 
have brought new concepts into 
play and the small independent 
builders have always been adept 
at producing the bespoke article 
or a trailer to fit the very 
specialised needs of an indi- 
vidual customer. 

There have also been moves 
to help the lot of the driver. 
From sliding doors and curtain- 
sided tilts to one-man handling 
of air lines and securing webs 
the trailer manufacturers have 
sought to ease the burden of 
loading and unloading and to 
speed up tumround. This 
pleases both the driver and the 
operator in a business where 
the ability to keep to tight 
schedules can mean the dif- 
ference between profit and loss. 

There has also been m.ire 
use of refrigerated vehicles— 
commonly referred to as reefers 
— and with the prospect of ever 
more stringent regulations 
covering the transport of food 
it seems likely that there 'will 
be a growing market for this 
type or trailer. 

In this area too there has 
been an increased use of glass- 
reinforced plastic and plywood 
sandwich which offers smooth 
sides, good impact resistance 
and ease of cleaning. The 
original specialists were Tidd 
Strongbox hut both York and 
Crane Fruehauf are both now 
using the material and the 
method seems to have estab- 
lished itself as a permanent 
feature of the scene. 

The next great design exer- 
cise will be the problem of con- 
forming to whatever rules are 
agreed throughout the EECr 
This will cover axle-loading, 
including the differences in 
distancing from the tractor cab. 
the positioning of the pivot pin 
for the articulated trailer and 
the amount of trailer load to 
be carried by the tractor axles. 

The trailer builders are also 
ready to respond to any changes 
in materials handling as well as 
developments of fashion. But 
there is general agreement that 
many of the markets they are 
serving will retain highly indi- 
vidual characteristics and the 
industry seems ready to accom- 
modate them. 

• They have shown the ability 
to adapt speedily to new 
materials, for instance the use 
of new cloths in such vehicles 
as the Tautliner developed by 
Boalloy. which gives all-round 
access coupled with great 
strength, and the clever use of 
webbing to give great strength 
under tension while still being 
light. So The industry still 
looks for the clever idea to over- 
come the limitations of tradi- 
tional materials. 

THE UK trailer industry picked 
itself up from the floor last year 
and pnt the two years of depres- 
sion which hit it in 1975 ’and 
1976 firmly behind it The 
improvement, however, is un- 
likely to herald another boom 
such as the one that occurred 
in the late' 1960s aud early 1970s. 
Since that period of heady 
growth; when the big switch to 
heavier lorries, articulated 
vehicles and international haul- 
age was going on, the industry 
has matured into a much more 
stable pattern of mainly replace- 
ment buying. Expansion in 
future- can be expected to be 
only steady, although clearly a 
move to different vehicle 
weights, still a possibility, 
could give an additional 

The indications are that last 
year’s growth in demand was 
mainly caused by replacement 
of trailer fleets which had been 
neglected in the 1975-76 period. 
Companies with, cash flow 
problems during that period 
tended to put off the refurbish- 
ment of their vehicle fleets 
right across the board. But as 
profits and finances improved 
last year, they, came back into 
the market rather than face 
increasing maintenance bills, 
i As a result. UK production 
rose to. about 17,500 units, 
compared, with some 13,500 
drawbar and semi-trailers manu- 
factured in the previous year, 
and 11,000 in the depth of the 
depression' in 1975. UK sales 
went up from about 10,000 units 
in 1976 to 14,500, a rise of 45 
per cent 

The big disappointment for 
the industry was that exports 
remained virtually static at 
around 3,000 units. This was 
mainly caused by the lack of 
manufacturing resources to 
cope both with the expansion 
at home and further efforts 
overseas. But there was also 
some decline, in the general 
level of demand for exports, 
whieh rose sharply in the 
Middle East during the boom in 
oil production in 1975-76, but 
has since levelled off as equip- 
ment flooded in. 

larger groups will be in a 
position to go ahead with the 
capital investment involved. 

It is clear already that the 
market has taken an irrevers- 
ible step towards more 
sophisticated products ■ and 
away from the old type of plat- 
form trailer which used to 
provide the backbone of the 
trucking industry. Enclosed 
trailers provide better security, 
far more protection against 
the weather and damage, and 
greater safety for other road 
users and truck drivers. 

A 44-tonne trailer. 


(£ 000 ) 

No. Value No. Value No. Value No. "value No. ~Valw 
Total trailers 22,169 43.121 19.066 51,170 11,024 33,571. . 13.497 51,047 17,500 — 


No. Valoe 


No. Value 

of whieh. sales In UK 

domestic market 20,428 37,123 17,186 43,315 8.245 22,764 10;112 32,227 14, aW 

Source:- Business. Monitor. Department of Industry. 

Manufacturers are not expect- 
ing a great change in this 
situation this year. Some export 
markets, such as Eastern 
Europe and Nigeria, remain 
healthy, and there has been an 
encouraging improvement in 
trailer component sales abroad: 
Rubexy Owen Rockwell, the 
trailer axle manufacturer, for 
example, exports some 50 per 
cent of its production. But the 
likely trend is for Middle 
Eastern markets to level off. as 
many areas of the world move 
in favour of importing parts as 
they try to build up their own 
domestic industries. Because of 
these trends, much of the 
future for the British industry 
depends on how it fares in 
Europe in competition with its 

Continental rivals. 

' Overall, the Continental 
trailer manufacturing industry 
is probably more' fragmented 
than the UK’s, but most of. the 
big markets have a similar 
pattern of two or three big pro- 
ducers dominating sales. The 
biggest difference in Europe is 
that, the road haulage industry 
is not so large as if is in the 
UK, and although international 
trucking is well developed, the 
trailer stocks in these countries 
are probably not as great as in 
the UK. 

The most recent international 
figures, given in the Monopolies 
Commission report on the Frue- 
hauf/Crane Fruehauf merger 
indicates that total British 
trailer stocks, including both 
semi-trailers and drawbars, 
came to between 160,000 and 

185.000 (trailers . are not 
registered, so there are no pre- 
cise figures). This compares 
with a total stock of 123,500 in 
Germany (80,300 drawbars and 
43,200 semi-trailers), 111,000 in 
France (11,000 drawbars and 

100.000 semi-trailers), and 

62.000 in Italy (50.000 drawbars 
and 12,000 semi-trailers). The 
Netherlands, also a big trailer 
market because of Rotterdam’s 
status as an entrepot is calcu- 
lated to have a stock of 41 B00 
units (10,200 drawbars, and 
31,600 semi-trailers). 

the other Fruehauf subsidiaries 
in the region: it has sales of 
about £70m. a year compared 
with £50m in its French sub- 
sidiary and £30m in its German 
company. Fruehauf overall has 
a turnover of about £l60m in 
Europe, giving it some 20 per 
cent of the European market of 
about £800m a year. 

Companies in Europe are be- 
ginning to look on this market 
more and more as an integrated 
unit This is what lay behind 
the hard-fought Fruehauf bid 
for Crane Fruehauf in the UK 
an acquisition which has given 
the parent group the corner- 
stone on which it is aiming to 
build a European concern which 
co-ordinates its manufacturing 
and marketing organisations. 
Trailor, the largest French 
manufacturer, 58 per cent 
owned by Pullman of the U.S., 
is trying to develop a similar 
strategy from its strong base 
in France — production there ex- 
celled Britain's last year at 
26,000 .units. Along with Britain, 
France is the key market in 
the European semitrailer indus- 
try, with production regularly 
approaching the same level as 
in the UK. Germany and the 
Netherlands make only about a 
one-third of the total. 

It is mostly because of the 
relative size of Britain’s trailer 
industry that it has developed 
companies which are powerful 
in relation to the rest of 
Europe. Crane Fruehauf, for 
example, is probably the largest 
European trailer company, and 
is certainly bigger than any o! 

The move towards integration 
of the European market will, 
however, have to take account 
of differences in legislation and 
in operating practice in the 
haulage industry. Europe is by 
no means as homogeneous as 
the U.S. as yet, and probably 
never will be. In Germany, for 
example, legislation has en- 
couraged the widespread use of 
draw-bar trailers until they have 

become an integral part of the 
transport scene: in the UK, 
legislation has had the opposite 
effect. At the same time, Bri- 
tain's stringent vehicle weight 
regulations have encouraged 
the construction of lighter 
trailers in an effort to achieve 
the maximum use of load carry- 
ing space. 

EEC regulations will gradu- 
ally iron out -some of these 
differences, once the Com- 
munity comes to grips with the 
thorny issue of vehicle weights 
and dimensions. This will have 
the effect of imposing more 
standardised designs. But at 
the same time, companies have 
had to adopt a more inter- 
national stance in manufactur- 
ing in some areas to cope with 
the requirements for long-haul 
vehicles which have to be 
acceptable ’ in a number of 
different countries. 

Technology will also play its 
part in bringing a more 
rationalised structure to the 
industry ■' and the product 
ranges. £his ' is because the 
newer equipment for making 
the more sophisticated trailers 
— tankers and the like — will be 
so costly that only the larger 
companies will he able to afford 
to put down the capital. New 
methods of welding, metal 
bending and making glass- 
reinforced panels are all being 
discussed widely io the industry 
at the moment, along with new 
automated production processes. 
As they are developed, these 
techniques are bound to put 
more pressure on the marginal 
producers because of the cost 
savings they create: but it is 
likely that only a few of the 

Thus aJ though platform 
trailers still provide the 
largest proportion of vehicle 
stock at around 20 per cent in 
the UK enclosed vans for 
carrying dry freight ■ and 
refrigerated goods, come a close 
second on about 19 per cent, 
tu be followed by the curtain- 
sided and so-called TIR vehicles 
on about 14 per cent. Tankers 
account for another 9 per cent 
Given tbat some or this vehicle 
stock is quite old, and there- 
fore inherited from the days 
when platform trailers were 
more popular, it is clear that 
the newer forms of trailer are 
gaining ground fast: indeed, 
during 1977 the curtain-sided 
sector showed much the fastest 
growth, mainly because the 
design of these trailers offers 
all-round access, and a quick 
turnaround loading time, while 
guaranteeing security of the 

It is also clear that these 
more complex products require 
more specialised skills in manu- 
facturing. According to the 
Monopolies Commission report 
on the Fruehauf takeover of 
Crane, there are about 40 
trailer manufacturers in Britain. 
Yet, of these, only 10 make 
frameless (monocoque) vans, 
and only 12 manufacture TIRs, 
while 15 are in the business of 
making large platform trailers. 

This trend towards sophisti- 
cated products also clearly gives 
a chance to highly specialised 
trailer manufacturers who can 
build up a reputation in one 
particular area, such as Freight 
Bonallack in refrigerated 
vehicles, Tidd Strongbox in 
GRP panel vans, or King and 
K A. Dyson in low loaders. Like 
the smaller lorry manufacturers, 
they can provide quality and 
know-how for customers who 
require special treatment But 
it is unlikely that any of these 
smaller manufacturers will be 
able to expand into prominent 
operations as happened with a 
number of newcomers, such as 
Bodens, in the 1960s. Trailer 
manufacturing has now grown 
into a mature industry, with a 
fairly stable commercial 
structure in which the 
economies of scale will 
strengthen the hands of the 
larger producers. 

Terry Dodsworth 

Growth of leasing 

Stuart Alexander 

LEASING IS by no means as 
common as yet in the UK as it 
is in the U.S.. but in the last 
decade or so it has grown inro 
a reasonably mature industry. 
In the haulage business it is 
gaining ground steadily now 
that many of the big fleets have 
shown the way in converting to 
this form of financing. “Ten 
years ago we used to have to 
convince people that we were 
respectable.” says one leasing 
expert “Today, most people 
realise that we have something 
to offer, aod it is a matter of 
pursuading them that we have 
the right package for their 
particular purposes." 

The pattern of development 
in the trailer industry has 
followed the lines mapped out 
first in car leasing and then 
in commercial vehicles. 
Customers first became inter- 
ested about 10 years ago. Then 
the leasing business went 
through a period of growth 
which was followed by a plateau 
of activity during the market 
depression after the oil crisis. 
Many companies burned their 
fingers during this -period, par- 
ticularly on the Middle East run 
when leased trailers were fre- 
quently lost or stolen, and 
the leasing operators left to 
prove that they were irrecover- 
able in order to qualify for 
insurance compensation. 

Interest was reawoken last 
year as industry began to pick 
up and haulage companies 
started replacing their fleets at 
a Faster rate. The trailer 
industry, like the rest of the 
vehicle business, also benefited 
from the boost to leasing given 
by the alteration in the leasing 
regulations last year. This 
released lessees from the obliga- 
tion of putting down a large 
front - end payment at the 
beginning of a lease and allowed 
them to go straight into the 
repayment system, thus smooth- 
ing out the flow of financing. 

Companies take up leases 
for two main reasons. The first 
is tbat the system releases them 
from lying up a large amount 
or capital in equipment which 
they might be using elsewhere. 
This argument depends critic- 
ally. of course, on what alter- 
native uses the company has 
for the money, and there are 
occasions when any one business 
will want to alter its policy 
because of changed circum- 
stances. In the last two or three 
years, however, the tightness of 
finance has meant that many 
companies have seen an advan- 
tage in turning to leasing, and 
balancing the rentals clearly 
against the money earned by 
the use of the equipment. The 
system also has the advantage 
of smoothing out cash flow since 
the pattern of rental payments 
is clearly known in advance. 

The 'second important con- 
sideration . behind leasing is 
that contracts can be written to 
provide users with maintenance 
and service. Some customers 
want this kind of backup so 
that the trickier problems of 
managing the fleet are 
shouldered' by someone else, 
■while they have guaranteed use 
of the trailers they are leasing. 
In this kind of area, known 
generally as contract hire, a 
wide variety of services is pro- 
vided, from the complete 
administration of a fleet, includ- 
ing invoicing systems and so 
on, to regular maintenance 
deals, or maintenance and 
breakdown contracts. 

general truck business. But. at 
the same time, the figure also 
indicates that there art possi- 
bilities for a great deal of 
growth, since in the U.S., where 
leasing finance has been avail- 
able for much longer, and 
industry more used to taking 
advantage of it, the majority of 
trailers are now run under 
leasing contracts. Since the 
U.S.’s semi-trailer stock is 
reckoned to amount to about 
I.5m units, this means that 
more than 700.000 pieces of 
equipment are being run unfler 
leasing contracts. 


There are no clear figures 
showing how far the trend, 
towards leasing in the trailer 
industry has gone. But it is 
possible that this form of 
finance provides backing for 
about a tenth of the UK's total 
stock of trailers, now believed 
to stand at well over Jt’d.iiOO 
units. This is roughly in line 
with the use to which leasing 
is being put in the rar and 

The boom in demand for 
trailer leasing last year encour- 
aged a great number of new 
companies to enter the market 
in Britain — one established 
organisation calculates that 
about 30 new branches were 
opened up and down the coun- 
try. The big finance houses. 
. having moved into car leasing! 
are now taking a hard look at 
the commercial vehicle sector, 
including trailers, while a 
number of smaller entrepre- 
neurial organisations are latch- 
ing onto the opportunity pro- 
vided by the fashion for leasing. 
But the two largest companies 
in the field remain .Crane Frue- 
hauf and Transport Interna- 
tional Pool (TIP), who are both 
well -ahead of their rivals in 
terms of the number of vehicles 
they have under leasing or con- 
tract hire arrangements. 

The two companies, though 
both, ultimately American- 
owned. are nevertheless very 
different in terms of where the 
emphasis of their business ties. 
Crane approaches it from the 
point of view of the trailer 
manufacturer adding another 
facet to the basic .business of 
manufacturing; TIP. on the 
other hand, is a leasing special- 
ist with wide experience in the 
vehicle industry, including 

cars. Its skill lies in identifying 
the rfght kind of leasing or 
rental deal for a particular 
customer, and then providing 
the expertise to fashion con- 
tracts to the particular needs of 
individual clients. 

Both these companies -pos- 
sibly have about 3,000 trailers 
under their direction in -the 
UK at present, and .the indica- 
tions are that this is about twice 
as many as their nearest rivals, 
such as Central Trailer of Man- 
chester, or Xtra Trailers. 

TIP, based at Watford, is par- 
ticularly active in international 
haulage, concentrating on the 
sort of trailer fleets which are 
involved in long-range routes 
across Europe and even further 
afield. This bias is partly be- 
cause the international haulage 
business tends to he more 
sophisticated in its use of 
finance, and therefore more 
ready, to move to leasing. But 
TIP is itself a well-spread inter- 
national. group. with branches 
in most European countries, 
and . an . estimated European 
fleet of 1 about 10,000 units. The 
trailer group Is a part of Gelco 
the largest of the U.S. vehicle 
leasing companies, which ex- 
panded in Europe a few years 
ago on the heels of the Ameri- 
can vehicle and trailer manu- 
facturing. groups. Like the pro- 
ducers. Gelco has now built ud 
Pos l Uon in its own 
f 1 ' Ieasi "S company 
is establishing a major foothold 
in Britain— -and on the trailers 
side possibly has the biggest 
leased fleet in Europe. s 1 

The Crane Fruehauf organ Isa-' 
tion also has some international 
mks through the Fruehauf 
Corporation's European nc(- 
work. This is centred on 
RenTco Europe, which i s 
registered in the Netherlands. 

* nd . 15 , owned by 

Fruehauf International, RenTco 
Fruehauf France and Acker 
Hiann-Fruehauf of German* 

Two years ago. RenTco also 
took" over the activities of ICS 
Trailer, a U.S.-based leasing 
company which was active on 
the Continent and in the VJL 

The Fruehauf leasing and 
rental subsidiaries, however, 
tend to work reasonably 
independently in each European 
country. In Britain, the group s 
activities in this field are split 
between a pure leasing com- 
pany. which specialises only in 
finance, and a rental operation 
which offers a variety of coo- 
tract hire schemes. The. com- 
pany says that about 50 per 
cent of its fleet is on fairlT 
short-term contracts which 
include maintenance aod 
servicing clauses. 

Like Crane, other trails 
■manufacturers have examined 
leasing as a separate arm" of 
their business. Craven Tasker* 
for instance, runs EuroU# 1 
Rentals, and York has tested 
the water more than once- to 
the last few years. But non® , 
nf the others has made the sa® f 
impact. York, indeed, the ! 
largest UK manufacturer, b* 5 
run dawn its leasing activities- 
The main competition today. & 
coming from financing 
orientated groups whose <4$ 
expertise lies in fashloBilfi 
schemes to suit the tax 
financial position of 

How many of these gfWJJ 
will remain in business .in. to® 
trailer industry is aW®®?* 
guess. Currently, a fat 
Purdy fashionable inleresl .r 
being shown in tins 
which is bound to die dMJ? ' 
time. On the other hand, *8®* 

*s probably scope for W* 

*wo more large ctimp&n^ j, 
appear and make their 
since it is likely that" wiB*n 
len-year period a. much 
Proportion of the trailer fz 

will have gone over to 

-Terry DodsffO*®: 


Crane Fruehauf Limited 

Hayes Gate House, Uxbridge Road, Hayes, Middlesex. 

Tel: 01-848 0225 or 01-561 0078 Telex: 935882 & 262051 




Financial Times Monday May 22 1978 



xports provide 

a lifeline 

EXPORTS HAVE provided a exports. But the statistics show increase in demand at home and time, the value of parts exports 
'..iliiablc 1 1 IV I mi.- in ihe UK a steady tTend towards overseas a further expansion of exports to the EEC has risen even more 
trailer industry during the difli- markets. In 1972. semi-trailer as well. If demand stays fairly sharply, increasing from £0.6m 
uilt period "T market decline exports amounted to" only S90 steady in the UK this year, or in 1972, to £3m in 1976, much 
. in rim: the mid 1970s. In the units, worth £2.7m: by 1974 this shows only a gradual increase, of which was probably due to 
pre\!iuis dii-ade the industry had risen to 1,625 units worth overseas sales may experience the successful assembly opera- 
had expanded rapidly as the £6. am, and by 1976 to 3,017 another substantial upturn. lion now run by York Trailers 

British inai-k.-i .-nn verted from units worth £17.5m. Exports of A small part of the improve- in Holland. " J 

: 1 1 freight and haulage in rigid trailer components also rose raent in overseas sales can be Perhaps a more significant 
truck* in ihe newer concept of rapidly, going up from £l.Sm accounted for by the growth area of growth has been in the 
* -in i -trailer* — a separate load- worth in 1972 to £8.lm in 1976, of trade with the EEC since Middle East, although there are 
i-.i;ryuu umi hauled behind a some £3m worth of which went Britain's accession in 1973. n0 official figures ^lu indicate 
ir.-vtnr cah. A; the same time, tu ihe EEC. Indeed, in 1973. semi-trailer precisely what this market 

it:-.- stead* growth uf the Last year, the record was by exports jumped from 890 units accounts for All the big UK 

mummy helped the trailer no means as successful, exports in the previous year to 1.440, producers — Crane York and 

-.ii:tnii: :n-i nr.-r- ahme by buu-t- remaining fairly static at an expansion which could Craven Tasker sav they have based economy, and already im- which reached a value of £5.3m similar agreement in Algeria, effective exporting company, is 

iii— demand. But a> ihe ml crisis around 3.000 units. But this can mostly be attributed to EEC experienced stron° sales in this Porting a great number of in 1976, imports have risen to The head of Fruehauf Europe, also intending to do more over- 

area. whprp Thorp is heaw British lorries, requires a broad about £2m from £lm in 1975. vr it-h Srhu/ah. savs that tliis seas assembly at its Dutch plant 

A Craven tasker Task tilt semitrailer. 

v. a.- liilinivL-d by the three-day be 
week, and the genera J level of sharp 
iiniti -trial activity fell, 
trailer manufacturers were 
will a yn.-at deal 
eapai-uv nn their hands 

mainly explained by the markets, which took 816 units area , where there is heavy 
P upswing in the domestic against 267 in the previous year, demand for vehicles. 

I.--." - 

Major producers 
take a grip 



, demand for specialised vehicled variety of products, and most of The main sources of supply are the wav he believes exports asa means of reducing transport 

the market from about 10.000 sales Since then, sales have risen Qn the one hand the growth of the UK trailer manufacturers France and Germany. Similarly ^UI eo in the lone term cosls 10 the Lonlinent. 

left I- well over 14,500. which progressively in Europe, going ^ production ba!s brought with have kuOt «P sal«s there. ' parts imports have now reached ^ th there are commercial In the final analysis, the over- 

of spare diverted production away from up step by step to 987 units in it the nee d for verv heavy-duty Part of Britain's success over- £1.6m against £02m in 1972. In J 1 in establishing manu- all UK performance will depend 

*. overseas opportunities. The in- 19/6, worth £o.3m - about 30 low-loader trailers for transport- seas has been due in recent the longer term, also, Fruehauf J in units in develop- to a considerable degree on 

Not all ..I the slack created at dusi r y simply was nut capable per cent of ihe total value of ing enormous pieces of drilling years to the competitive cost has declared ns intentions of . f d .. In future j don - t Crane - S policies^-the American 
mat time could be made up by of coping with the 50 per cent overseas sales. At the same and production equipment; on °f the U.K. product This, in establishing specialised produc wilI be a market for owned company and York, each 

the other, the rapid escalation turn, has been caused by a com- non points within its European ^ jmport of tra i] ers s0 much exporting abuut £10m worth of 

of building and construction bmation of low wage rates and h « as for the import of parts." goods, account for about two. 

has created demand for tipping » “ore rationalised industry expect ed to “crease the fiow of immediate future the thirds of Britain's exports, 

trailers of various kinds: and than in some parts of Western two-way traffic. In the immediate future, tne critics of ^ Fruehauf 

in addition, the expansion of Europe: Britain has a larger Outside Europe, the first’ prospect* for exports, while ' f Crane believe that 
consumption of alt kinds of haulage industry than any other signs of the move towards over- better than last year are still v * n d roduce 
Western luxuries has increased country in the region, and its seas assembly came in the deci- nut as buoyant as two years ago. • . P p h . 

riS for a basic trader companies tend to be sion of Crane Fruehauf to set The explosive growth in the and °£ e c as n e 
haulage and trailer industry bigger. Yet competitors from up an Iranian facility in 1976. Middle East has now come to itseir has -tsueti I that it \nll 

alon^wiST snecilsed cquii^ ihe rest of Europe have seen This is jointly owned with an end and competition become increase the BrRishsu^dia^ 

ment such as ? refr derated van that the UK does not have Iranian interests, and is still in more fierce, with the Japanese potential for export. Tlte nrat 
7r ,ii p „ ° it ail its own way in any of the process of being developed, moving in and the American few years w show which side 

. ' these overseas markets, and it Similarly. Fruehauf's French producers taking advantage of was right in uic argument 

A similar demand for highly b as become increasingly diifi- and German subsidiaries have the weakening of the dollar. HT n 

specialised equipment has come cu j^ f or examp i ei f 0 W j n orders joined together to negotiate a York Trailers, Britain's most 

in recent years from Eastern in MiddJe East particularly 
European countries and Russia- since ^ harde oing of the 
all of which are developing a pound during ^ ]ast vear 
haulage industry. From Russia. Fruehauf Corporation says that 
in particular, there has been SO me of its other European corn- 
heavy demand for large multi- ponies have had proportionately 
axle low-loading vehicles higher exports than its British 
capable of taking large loads — oroup 
one result of its development ° ^ si are that in 

policy m the East where some longer term it will become more 
very heavy generating equip- aDd more dificuIt t0 t in 
ment is being milled. Craven ^ overee as markets on a 
Tasker has picked up some of dlrect export basis ^ in the 
these orders against local com- tradk . and ar industryi many 
petition. Similarly, Poland has countries will increasingly 
als0 > wl b0U f ?h L - a cr, ° sl d® r ahle demand an element of local 

number of refrigerated vehicles assembly. Thus the industry will " THERE SEEM to be scores of less producers. The same goes France and Germany with over 
fr ? m , cravens for in a . 1 split two ways. On the one hand, trailer manufacturers in. Ger- for the Netherlands. Italy. Bel- £150m each and the rest making 

wnicn. among other things. there wil j be greater rationalisa- many. But every day another gium .and Denmark. In Ger- up the other £300m. Thus it is 
transports meat to the Middle tion within Europe, leading to a one disappears- and we regu- many the two largest producers important for any manufacturer 
tast - growing cross-flow of parts larly get offers to buy up others, are Fruehauf, through its 98 to have a presence in Britain, 

between different EEC nations; The business is becoming more per cent owned subsidiary and particularly for a U.S. 
on the other, there will be more and more mature, and there are Ackermann-Fruehauf, and Kass- producer making a similar sort 
overseas assembly plants in the becoming fewer and r fewer bohrer. reckoned to have 20 per °f product — a semi-trailer as 
The other most significant developing world. players, just as in the car in- cent and 30 per cent of the opposed to the drawbars which 

market for Britain in recent There are already signs that dustry.’’ As these words from market respectively. In France, are used much more on the 
years has been Nigeria, which these trends are establishing one of the European industry's the two leaders are Fruehauf Continent, 
has now become the second big- themselves. The flow of trailers top executives indicate', rational- France (about 25 per cent) and Fruehauf's bid for Crane was 
gest overseas importer ~of between Britain and the rest of isation is now sweeping through Trailor (about 32 per cent), therefore intended to consoli- 
Brirish motor industry products Europe, for example, is already the trailer manufacturing sector which is a subsidiary of Puli- date its hold 0,1 this important 
after Iran. Nigeria, expanding growing: to correspond to the in every significant country' in man, the second largest U.S. mar ket: But at the same time, 
like the Middle East on an oil- growth of exports to the EEC, the EEC. making it harder for trailer manufacturer after Frue- U.S. -based group is hoping 

the small, non-specialist com- hauf. In the UK the leaders are rat |” na J is f t i. c,n one move 

panies to survive, and creating again Crane Fruehauf, now 100 * uriner ay ,n * ,n ® lls 
a smaller number of powerful per cent owned by Fruehauf Ku^ ropean affiliates closer 

companies than ever before. Corporation, with about 44 per t0 S. er and treating Europe as 

A few seal, companies arc. «»t of the market, and York A Se ww. 
nt course still emerging. But Traders. 25 per eeot S The I‘m I, IS 

these tend to be real specialists, Fruehauf also owns the Netam integrate design, manufacturing 
intent on looking after discreet company of Holland, where it parts buying and marketing into 

little niches of the market or recently raised its stake from on e co-ordinated effort 

_ — .. c system will be on making units which require 28 to 100 per cent, and has 20 

■ ..i im - jn-i bow iiiiiiciiit anci crane l ruclmuf, in the UK. other considerations are added, relies on monitoring, electronic- extended to cover the registra- some unusual skill. What is per cent of the equity in Forss- \j* 

,i lii-fii” um funnily to a with B.2u,. ^ urk was third with Total vehicle weight is the ally, the rate of deceleration tion of the vehicles involved, gradually disappearing is the Parator. a company jointly held V 120 TO US 

i;. : rollout it) market, about o.T per cent overall. most obvious — there are maxi- rather than the position of the so the merry-go-round con- old tendency for back-street with Volvo and Scania, which ° 

' :IV r’-cirtviy-il m Very fi*w yum panies operate mum limits running from 50 load- tinues. , trailer companies ■ to spring up also has plants in Norway and Trailor, with its recent incur- 

- tii’i.iuny Hu] lantl, throughout Europe — although tonnes in Holland down to 32.5 So Tar there is no compulsion At least in one area, lighting, out of nothing making standard Finland. In Italy and Spain sion into Britain, is clearly 
.'ii .I’M \n-iii;: in ihe L.K.. iiieir product* will often be tunnes in the UK — but overall backed by law in the U.K.. but it should be easy for trailer platform units. "Anyone with Fruehauf has licencees, thinking along the same lines. 

1 :-i.m :::m ‘ | 'I. v ihi-rc arc M’en mi i hi major r>.iiiies — 'and height is another and regula- there is a voluntary agreement manufacturers to keep ahead a large garage used to be able although it is cutrently in Whether any other European 

.i-l 1 • 1 1 > t'-coril-. which m manj uuirkct* large shares linns which also cover the between the Department of of the rule book, one would to make a trailer,” says one disagreement with its Italian companies will have the 

i - -.»• 1 - mo Mii.'lcadiug fir are liHtl 1c. a myriad of small transpurtatinn of fn»d form a Transport and the Society of think. Yet even here it is not executive. "They could go out company, Officiane Calabrese. resources to do the same is an 

i-l'.d c. i-iM iaki-n overall Imildcr.-. third. Motor Manufacturers and just a matter of festooning some and buy the steel and ihe Because of the way in which °P en question. York Trailers, 

i-v.:. mai'M'i in i hese cunt inorcin levs nno nr the Gross vehicle weight and the Traders that all the tractor extra illuminations along the springs and get some welding it has moved into every signi- always a vigorous exporter from 

d with these side of the trailer, a relatively equipment and they were in ficant market, Fruehauf, the t^e UK has made It dear that 

trailers are simple job that could almost be business with zero overheads, biggest of the U.S. trailer it wants to play a larger role 

aion. covered by a modular kit. The Then when business became manufacturers, with annual in Europe by exporting parts 

little political lobbying. While Common minimum standards problem is the height of the marginal they could dose it sales of about 51. Sbn, has dearly to its Netherlands assembly 

‘.!i . , . .P;: 9, a> ,r:i * 5l? efficiency, axle trailers arc a simpler piece of for some design features and lights off the ground, which is down quite easily.” emerged as the dominant facility where they are made 

.- '' I w: !" , , n 'r^ is ‘ u ' ,c *ths and machinery no secondary performance characteristics for bound up with the height of company in Europe. It is up into trailers of various kinds. 

| V"'li' , rnu"d. w,, n htuglils. A plalforni on wheels decisions will be made about all road vehicles are also being trailers generally. CjT2tSD followed by Trailor, in which But no one else has shown 

I’"'' , , n '- " T tlif «o w '"wort behind .smile son iheir construction until the drawn up to replace individual At every turn there is another Pullman has a 58 per cent international manufacturing 

• . :-i.ii.i.r-n iiumw.i lu-'gcsi .if tractur w a very basic piece overall problem is solved. national requirements, most of gremlin of a rule waiting to Fewer and fewer of these stake, and then by a group of ambitions. 

■•o m panics were «»■ eqmpnw nt which quickly ^ nd tbis (] epC nds as much on which relate to safety and catch out the trailer builder, organisations are getting off the wore nationally-based opera- A more rationalised company 

other criteria, such as current environmental considerations. and behind every gremlin there ground today. This is partly tions such as York Trailers of structure is also being created 

engine ranges or model options These "type approvals" have are ten civil servants. because the larger producers (although York now by the move towards vertically 

among the various national * ar tackled the problem in a The only answer has been for now have a tighter grasp on the ^ ias 311 assemh ly subsidiary in integrated organisations. This 
builders, as on the apparent con- rather piecemeal fashion, with the trailer builders to split up market, with wider distribution Netherlands) and has particularly affected the 

eern for the environment. The EEC directives being introduced Lbeir overseas operation on a and stronger marketing. Partly. Kassbbhrer in Germany. UK in recent years. York, for 

search for a common approach to cover specific features rather national basis. In the end this also, customers have become During the past year, both example, has acquired both 

In heavy trucking in Europe has than the whole vehicle. And may prove to be beneficial, more discriminating as loads Fruehauf and Trailor have Anthony Carrymore and Scaio- 

shown starkly some of the prob- individual members can decide especially if. as some predict, have grown heavier in the in- strengthened their positions, mell Trailers, the former 

tents of " community ” living whether to make the EEC direc- it takes a long time to overcome dustry and distances longer. "A Fruehauf has completely taken British Levland subsidiary, in 

and the way in which individual live mandatory, although they the fragmentation In Europe great number of our customers over ^ )0 ^ 1 ^ UK and its recent vears. thus' widenin'* its 

countries are very ready to find cannot refuse entry to vehicles and the insistence by operators today don't just drive back and Netherlands associates, while product ran°e. It has "also 

their individual solutions. from other countries which con- that their trailers are custom- forth between Felixstowe and r ^ ra ^ or has begun to expand developed a° 'lar°e-scale asl e 

In the meantime the trailer form to the minimum standards built. London. Their vehicles have to from sma11 base >t estab- manufacturing farilitv so that 

builders gnash their teeth, the laid down. far there ^ not se emed S° everywhere in Europe," says llshed ln th ® # b ’K about three it now has the ability to make 

hi- „ncs because they cannot . tu b e any great urgency to one executive. *« l S* S3me Ume ’ virtually any product, from * 

put mrn effect ihe economics of ApprO VHlS tackle the problem of inter- But perhaps the most impnr- f/Yf posit . ,un ln the chassis to a hoist in-house, 

scale fhcir capital investments _T . national trucking. This (S tant factor against the small man . ,J as . . . h «n Similarly. Fruehauf has 

demand, the small ones because Type approvals are in the parUv betausc of thc . rowth is legislation. On the one hand fi? n lSS ,e " l y lhc d ? c,slon steadily expanded its orodnet 

h«-y are faced with the costly procea of ' being drawn up for of Ihe environmental lobbies labour regulations are making it ^merem! vehicle range. * re ee.tily “vfiL mgeo 

business of a constant round of comm ire a vehicles in the which have madc governments more difficult to hire and fire 01,1 of tra,ler and Abel Bodywork o'f Bol»n 

U'pi' approval formalities. U.K.. but there are those who i ook ner vou»ly over their n\en and therefore build up and 1 which specialises in the con- 



TI.l /a rest rnncjc of heavy duty tipping trailer f rum Anthony Carrimore. 

Coping with regulations 

.il/i'i' .i: the European trailer Trailor. in France, wilh 6.281. becomes 

complicated when anti-lock braking systems. This the TIR 

■ :uars , . , i in ilu*sc oiciii l nori-in lnvs nno »>r thc Gross vehicle weight and the Traders that all the tr 
;!l l! *‘ ' . v ’ a ' principal problems dogging thc number of axles required to units should be fitted with 

ni‘;' ''OH' "j winch Jii.oOO law make in m Brussels and carry q have been the subject devices, and semi-trailers 

‘ ' "■ 1,1 r trailers ami their aiii .npis. siiineiiniex not 0 f Jong wrangling and not a also a logical extension. 

!,,, M'liu-lrailers very In harmonise such little nulitii-al Inhhvine. While Common minimum stani 

■lid ■••.Ii! :i 

- r«^nn\aKV*M>*aa. 

Cr avert Tasker supply 900 refrigerated 
trailers to Denmark. 

a e 


■SKSf quality equation 



F "r years, cruelify consrious British housewives have 
boucriit Danish bacon. 

For years, quality conscious Danish Bacon have 
bouch: Bntish-biiilL Craven Tasker refrigerated trailers to 
transport fhe bacon — over 900 already supplied. 

Soeakffig ol quality. Craven Tasker also received the 
much coveted 19^*6 Design Council Award for their 
TaskJift trailer. ^ 

Craven Tasker produce one or the most extensive 
rariqc- of iraiiers and vehicle bodies in Europe. 

'Craven Tasker Ltd . factories at Sheffield. Andover; 
Yvccd’.iUe, Garstar.g and Cumbemauld. 

-'Phone 0283 221721 

A John Brown Company; 

,.-C , L , r r.i. , * kick nen'ously over their men ana mcreiore nuua up and r which specialises in the COO- 

Whatever the eventual gross Teel that for every country to shoulders before making any run down operations rapidly. T he Significant of these struction of refri»«'itS rigid 
weights, however, this should have its own set will only make decisions . * Employers have to try to think rationalisation moves was the vans F 2 I li 

not stop the EEC pushing ahead it even more complicated. And ^erc been any effec- on * a ” raore long-ie'rra" basil tateow th u e Crane Fruehaul at "tic puKiUuii! 1 ?!' mTkinfiS 

U!,h Ihk ' t0 the,r e,aboratc construction On ih^olher. vehicle safely ^ fought *w„ ‘LET!? 

w. — many anDar(?I1 t. although there would Europe, xnese standards, which - wu - 

s hppery roads and the trailer cover relatively short distances b J P obvious I benefit to wiil gradually be harmonised importance uf this 

5 I, S h0 - T !«*". Of ttiOMhoui their lives, u do th \„ ttuooghout the EEC, mean that ‘ 

S3 “ore is that the UK has , °?, e oC 'he arguments ajai^ 

31 vided pnndieiunti.i .v r° their 


builders ““X, fM , ^ , he fMtfnVfw ^wav7o7mSg U *the i™ 1 “V have Passod'Y7it u K J w<, i- » Bli “ s h 
Pfohlem Will he solved eirceDt trailers lighter and stronger, the S m °re li* 

deal with this problem, the the truck and trailer builders 
braking system likely to be as the operators strive to keep 

adopted by the EEC will in- up with the maximum efficiency "^VrcTVnTd^top. f^r trailers, bu,in an) -™" - ^ 

dude load sensing devices level. * ,J 1 package ana only ... ^ . P does not carry so much of iro 5,11 II remains to be seen h®* 

which control the degree of So the greatest pressure is for ? a grea deal :ri °^ wra ^ 5 ' 0 f tbp i ar gp r producers Dd produce b >’ road as the UK- accurale tiiat argument ^ 
braking at the wheels of each *,me son of "iffiernational ^^out of Se In -II Se Euro- ^V\ S ° ^ ^ ? Ul is cl«r that Frueh^ 

axle depending on the load it agreement for the international opportunist "ISS^V 1 Se markets. Germany^France ^an the VK* . h »- *V“ rcl ruled .out. pWJ 

. ■■■Mil i IlL 1.1 |\ -'j-il 

It is calculated that the lutai !“ niake own axles: am 1 

United S„t„.how„-cr. «“ '£ rSSn'”.^ ta 5ST*. » 

ere , e d.Eeren, eppreech ,o traders h„e , eontornt tn b„ ie . tn^us^ ^ ^ 

the problem, and this is already national regulations before they “ 

backed by legislation. There conform to international regula- ; 

they have decided to rely on lions. And it is unlikely that 

c* ^ ii j 50 per cent, of the trailer indus- nr ii j .T ,l,a . ycar in U.S ^ raled structures horn 
Stuart Alexander try is in the hands of three or ahml ' S J2jJ, m UK -««unls Tor En,ain a »fl across' Europ^ 

*- UUra , followed by X*R r 


Financial Times Monday May 22 1978 

On this page Terry Dodsworth and Stuart Alexander 
profile the men responsible for running some 
of the major UK trailer manufacturers, with 
particular reference to their plans for the future. 

* could also be co-ordinated to 
;• take advantage of the special 
contacts the national companies 
have formed overseas. Thus, 
while some of Fruehaufs sub- 
sidiaries can only .supply one 
product, together they can pro- 
vide a greater range and in this 
way pick up business for each 
other. There has been some 
criticism of the merger over 
just this point, with antagonists 
claiming that the UK company 
will now be excluded front ex- 
porting to areas where other 
members of the group may be 
given priority. But in Mr. 
Schwab's view the merger will 
help Crane build up its overseas 
sales. “Some of the' smaller 
subsidiaries have exported more 
than this company in the past. 
Whaf we want the UK - company 
to dn is in build on some nf the 
contacts they have to expand 
its business.'' 

The other area 
rationalisation could 
in manufacturing. 



The men in 



the tendency to be for operators 
to own now more than 80 per 
cent of their requirements and 
then fop up with rented 
equipment to meet business 

As well as being a necessary 
customer service Mr. Harrison 
also sees the rental and contract 
hire side as a sales stimulus. An 
operator will be able to concert 
a rental to a purchase if he sees 
some permanence -in increased 
business momentum and there 
are both financial and emotional 
incentives to keep the vehicles 
he already has. 

While he hopes that some sort 
of uniformity can be imposed 
on tiie European market, he 
accepts that it may take some 
time, another reason for 
establishing Trailor close to 
each market. But he hopes that 
the existing widespread market- 

— rssr Ss.'tss ? as sm « jus &r- 

Craven can consolidate its hold ' 
in these areas. Turnover should 
amount to about £2 (im this year, ■ 
about one-third of Crane’s. 

In export markets he sees ■■ 
further opportunities opening . 
up in Europe. “ We are looking : 
at this closely. The entree is 
Holland. The Dutch are the 
carriers of Europe.” he says. 

But there will also be efforts 
to move into new product areas. 

Perhaps the most important of 
these is the tilt trailers— the 
curtain -sided vehicles which 
have become extremely popular 
on both international routes and 
in the domestic market when 
a quick tumround time is 

The idea of these trailers is 
to allow access on three sides, 
while still providing 3 secure 
load which one man can deal 

with. Mr. Booker has been succession and third to complete 

shape of York 

come JS bv Pullman th» if «; hniirior help to put Trailor in the lead. 1 «*'*"■■* 1 a me 1 an tuner concept 

New pro- & rertbeingquatrf ontte £55* is SAfSi ^'eloped by Boalloy. to become 

* being Paris bourse. second biggest builder in l.L. “ i 8 wh ? n " ? f a Desi8n Coun cil 

“ Whoever lakes 
have a first class 

mer will 
ship.'* lie 

pxniain (h 1 „ . . , .. ment potential. Mr. Harrison And in third place is York, ^ wi^other move towards 

explains the long and bitter specialising in certain fields. m brought, in from York the company he left to join specSu towards 

If ever a man de- Masker came to prominence 

battle fought by Fruehauf Cor- “You have to have centralised Trailer where he had worked Trailor. _ 

poration for complete ownership production points to make these ciosely - wllh chai rman Fred liberately tied a firecracker "to P'SEX? _ ^ 

of its UK associate. The idea, things viable.” Davies who had recruited him his own tail, Jeff Harrison has SS^ofmoSrJ rehidw ifar T*rf±f\ 

h “ ff was 10 creale an Mr Schwab, who has .just from the advertising agency done iL Presumably, as the S^raF TndC^v^Sw Se A ICU 

grated European group in the spent four years with Fruehauf s that lised to handle ^ Y ork personal choice of the difficult- opportunity of Slogan tills 

• > \ 





, deX,d n ' I n h, ; d he it SE& ' h 7 the toiler M JSfSU K cent fTTlT^ TV^' S SLL 

for^^fV 10 Z AS h ? cess - Iy demn-id laree volume to justify taSg Lilion th „ f ^ eak of the to tel European mirket where toy T ‘,? er !, 0W , 3 , nd no “ The tike-over* »t Scnmmell 

for os. Crane Fniehaufj. going the investment m machinery. Trailers as cart of its entry of 6(1.000 trailers last year. But ^ ^ selling about 1.500 unit ia year TraUra frora BrI , ish L „., ant , 

for both new and used trailers. and Anthony Carr]niore » hich 

■™-^ ln “.i SteP ,Q in " specialises in tipper hydraulics, 
significantly our par- b0 , h ™ ,era sncceS 
this area - he says. savs „£ Davu . s • 

P.D- He is less happy with the 
delays to harmonisation of EEC 
regulations and decisions on 
maximum weights and con- 

He slams Government pro- 
crastination which, he says, in- 

developing North Sea equip- v " v * ■ a,ww * lerferes with capital Investment 

S-A. meat market “WHEN I came to this country on the basis ,jf “ thoroughly 

Low loader exports have gone I found some manufacturers speefims reasons." Like most in 

up to various parts of the world, stagnating in prosperity. So I ! he automotive business, espec- 

and in -1976 the company wdu went to BRS with some ideas. concerned with counncr- 
the Design Council award for a they welcomed a new face, gave tial vehicles, lie would like to 
new product which could be me my first order and 1 was in any set of rules agreed upon 
lowered to take on a load very business.” Fred Davies, now 72 rather than a continuation of 

quickly using only one driver, but still very much in control uncertainly. 

*£r "the* same time Trailor will " THE BRITISH trailer industry "At the time many people in of York Trailer, has built up In the meantime York is con- 
?Y Europe organisation. This will in the business in Europe in seek to increase the oercentaee ^ ** proud of its record in the “ dustr y lh«ught it was just his company to - number two centreline on Benelux for im- 

i \ lie an administrative, rather years to come.” he says. “We “fiocal cSSponSt content as last few years. Despite the anotoer new design.” says Mr position in the UK and the proved investment opportunities 

than a legal group, rather on have to take advantage of our well as looking for cost benefit slump in business at home com- Boowsr. uut it caught on. and third biggest in Europe since Europe. West Germany is 

same way as Ford has done German subsidiary, does not account.'" ” to nl ease Fred Davies he is the op P° rt * u P^ 1 OI ”H. I,a,n 8 °. n 

with its UK and German fac- believe that all these develop- The plan now is for Trailor man to bring it off. * U&VICS 

tones. "The fact that we have ments will come quickly. But j 0 n p en a service and repair 
gol i he UK makes Fruehauf he argues that the European facility alongside tbe motorway 
Europe a much more viable market is gradually moving in a t Mansfield, in Nottiugham- 
lhing.” this direction, becoming more s hire. which- will also set aside 

Mr. Schwab’s job is now to integrated as the EEC grows some space for trailer assembly, 
make a reality of this European into an economic reality, fore- Next year another depot will be 
rnnccpi. Ht* has already moved ing industry within the Com- opened in the London area, and 
to Crane Fruehauf s office block, munity to behave more, on the the manufacturing capacity 
at Hayes. Middlesex, to begin American fashion. “There will increased, 
work on the new Fruehauf he fewer trailer manufacturers 



the pattern of Ford of Europe, size. 

"I shall not build a great big 
empire of staff.” he says, “be- 
cause I have the complete 
business organisations in our I r|J 
national companies to draw on. 

I need a finance man. a market- TJT_ * 
ing man, an engineer and a f|3. 111 SOTl 
production manager. Only one 

•from thp n«» nf tik- wort panies have gone out and won during the construction slump introducing the Freigbtmaster also being studied and there is 

Tn force Materials account fnr ex P ort sal es while overseas when everyone else’s sales were in 1960. the possibility of trying to estab- 

1 about 70 npr cent nr thp cn^t businesses were collapsing. I dr°PPtn& ours were going up.” “ L intended to stay a couple | is h itself in Europe. But Italy 

of a trailer so anv savins that think we have carried the Union A similar strong area of of years but got swinging on the i8 dismissed by Mr. Davies as 

can he made in this area will hp Jack very successfully." This is business has been in recovery end of a tiger and couldn’t let an early prospect. 

needed e how Henry Booker, managing trailers for the army, where go,” he says, with the result that As the opportunist markets of 

Jeff Harrison sees The UK director of Craven Tasker, the f rou P J 135 strong links. as well as having diversified into the Middle East and Africa lose 
as a maior discinline for third largest company in the After absorbing the Tasker components in the UK there their appeal he- sees the test of 

__ Trailor a base Iot benefits British industry, describes the *n er Ser, the Craven Tasker will also be two York factories real success in Europe, though it 

of thcsk\ 'the finance man, wifi TO BREAK into the UK mar- which could be passed on to all strate sy w hicb has managed to bas . no ™ become the operating in Holland by the end is always possible thaL the com- 
be an -\mcrican.” '•-* e — « — -• — -■ .■ toon run- Vniohmir Vm+ tnira 

The aim of this group w 
to co-ordinate Fruehaufs 

pean aclirities, which are . r ... ^u^kem ucir nc iccia lhoi — ■ - - — - , _ L . a . , - >. - — — - 

between wholly-owned sub- understanding, a fair amount Trailor will be able to succeed specialised groups. ?, r0l J. ps ™ L ', rane fruehauf and facing Fred Dayjes as ue seeks Davies is still a citizen, 

xidtarirs in Germany. France, or cash, and shrewd strategy, throughout Europe, which is Craven Tasker, a subsidiary /°rk Trailer, and Mr. Booker to round off a life-time’s work in Back home tthat-is ibe UK) 

the UK and Holland, a 20 per It will also take some time. where the future will be of die John Brown group, and believes that although these the trailer business. First is to he is keen to see more vertical 

cent, slake in a Swedish com- But Jeff Harrison, managing decided. He also points to fanned from a combination of two companies are themselves crack the very complex market integration, using the expansion 
panv jointly owned with Volvo director nf TraiJor (UK), is diminished exports in the first Cravens. Somalia? and Taskers, branching out into these areas in Europe, second is to restruc- of component manufacture as a 

and Scania, and licensees in convinced that in five years he two months of this year as a has won e * por t s diffi- ” greater craftsmanship, ture top management ready for base for the expansion of the 

Spam. Yugoslavia and Italy. will be operating in a major warning for the future. cul1 l ” ark ®Lc during the la5t 

Co-ordination. sayy Mr. way in the UK and in ten He says that TraiJor has been decade: 11 bas delivered 900 
Schwab, can be fashioned in years should both have a sub- careful to present a European refrigerated vans for Danish 
various fields. In the immediate stantial slice of the business rather than a French image, a Bacon, similar vehicles to the 
future, he sees the most prnmis- and be profitable. line of approach not always Russians, and low loaders to 

ing area as the .mini buying of A tall order in a volatile typical of the often very tbe Arabs. The key to 

component Whereas trailers hu si ness, especially as. at first, nationalistic French. success in these markets, say 

art* nut likely to become abso- Traitor will be assembling com- Rentals, he expects, will be Mr. Booker, is quality: “ We get 
Imply si and a rd throughout ponents brought in from increasingly important in the these orders because of quality 
F.iirope in the near future. France, with all the difficulties UK, where the willingness to and price. John Brown as a 
mainly because European regu- of cost competitiveness that that rent is second only to the U.S. group puts a lot of emphasis on 
latino* have not yet been implies. and Is far more developed than quality. You don’t do any good 

harnmnivd. there is plenty of The main tenet behind the the rest of Europe except those iu our outfit by malting shoddy, 

scope for standardise parts. Trailer move is a belief that areas, such as Rotterdam, cheap goods. 

Rut in Mr. Schwab's view the only way to expand in which have become the great Craven has increasingly put 
this can only be done by Europe is to operate within goods handling crossroads. the emphasis on specialisation 
a group which widely spread each market. There is very TraiJor will also offer vehicles in the face of the recent depres- 
arross Europe and which little trans-border business — to rent, partly to even out the sion. Even on fairly standard 
k nun's local conditions and regu- though Trailor already claims production and sales peaks and products such as skeletal 
Iain, ns intimately enough to about 4 per cent of the UK troughs and partly because trailers, it tries to add in extra 
work out where the same parts market — and the UK market there is a genuine need in the quality^ just to improve these 
can hf» used. is the second biggest in Europe, market place to give the opera- units it has installed a shot- 

In the longer term, marketing Biggest last year was France, tors more flexibility. He expects blasting machine which gives an 

whole business. While manufac- 
ture of components is a way of 
squeezing a few extra percen- 
tage profit points out of a highly 
competitive business. York has 
also seen components become 
the dominant factor in export 

These went up by 50 per cent 
in 19 k io £14.1m. and of that 
75 per cent, was brought in by 
York Technical Services, the 
components arm of the Trailer 

As well as axles — “ wc are in 
competition with Rubcry Rock- 
well" — ji j*< likely that York 
will eventually move into oilier 
engineered parts sudi as >us- 
pension> and >cd: to sell them 
to other nailej- manufacturer-. 

As fur the market in the UK 
Mr. Davies sce.> little change 
in vul nines ilii> year. But he 
hopes that it may prove mure 
profitable and ilia; the industry 
will reduce the level of price- 
cutting. His nun company, he 
says has tightened up u> pricing 
disciplines and this has led to 
increased profits. 

Productivity has heen 
improved and Yurk has never 
been as flexible in striking a 
deal as sonic uf its opponents. 
But in a market which can be 
mi fragmented and where two 
men with an oxyacet.vlene 
welder can set up in business 
any day of the week it is hard 
lo bring big company financial 
controls to bear. 

However. York has managed 
In keep its borrowings ratio 
low while at the same time 
building trailers for delivery 
from stock and preparing in 
increase its rental side of the 

Fred Davies was born outside 
London but went to Canada 
when he was 20. He eventually 
ended up selling trailers for 
Fruehauf in South America 
before returning to Canada and 
becoming president of Trail- 
mobile, the biggest trailer 
builder there. 

Now a grandfather he has 
made his own fortune with the 
single-minded • determination 
typical of the North American 
pioneer despite starting when 
he was over 50. As we!! as 
playing golf “ indifferently ” he 
now has a farm in Canada with 
a small herd of cattle "which 
gives me the privilege of 
putting my feet on a five-barred 

But before he can get down 
from the saddle he has still to 
tie up the loose end that will 
package the business as he 
wants to sec it. 

The small manufacturer 

“THE SMALL builders are 
g.ung to take a much bigger 
-hare of (he market because we 
will win the inevitable price 
battle that is round the corner. 

■•\Ve are faster on our feet, 
ran keep operating costs very 
low. and specialise in better 

*■ The product will help us 

Those comments come from 
Hector Tidd who moved from 
North London seven years ago 
to begin building vau-bodied 
trailers in glass-reinforced 
plastic and plywimd vamlwirh at 
St. Nentsi, in Huntingdonshire. 
Having jmifii’ored tite technique 

and weathered a few hiccoughs 
along Uic way. he claims that 
Inisinc*.' ha> picked up strongly 
m the last iwu years and the 
company ,s " now ready iti take 
n closer look at the difficult 
European market. 

Small builders in the UK take 
hist over 7 per cent of the 
market, according lo industry 
cm trees, which is rather less 
than in some other European 
countries. In France they 
account (or about 32 per cent, in 
Italy nearly 40 per cent, in 
Austria 46 per cent, hi Holland 
j>D per cent, in Belgium 5* per 
ivni. and in Germany 58 per 
rent. So there is plenty of scope 
fur the smaller builder in 
Europe, although the existing 
bigger producers would argue 
that* the trend must be wt 
against small operations, par- 
ticularly if regulations on size 
and mechanical .specifications 
can he screed within the EEC. 

Even i hen the role of the 
small builder h faced with 
manv question marks, mainlj the trailer is such a 
simple thing to manufacture, in 

its basic form, and there are market And the problem of enthusiastically on behalf of a 
other conflicting basic trends, service and maintenance will small builder. 

In other areas of ihc auto- be alleviated bv the com- Many, he says, are more than 
motive industry too there is mooality of parts which has " ady t0 a ^cept attractive intro- 
some argument over (he future . *T “ “ ductory offers. More difficult is 

pattern of manufacturing. On him ^'advantage. As Mr. ^ task of finding one that will 
the one side are those that say ™ d *»**. specialisation and stay with the new allegiance to 
the vehicle builders should stick product quality will then be develop a long-term market, 
to their skill in assembly and Powerful sales weapons which Some are content merely to take 
marketing, passing on the reverse what should be a quick profit and disappear, 

benefit of volume in the form “ e normal trend of the big Also difficult and expensive for 
of more competitive^ prices. becoming bigger and the small the small builder is the tortuous 
On the other are those that b ^ ui e squeezed out. path through type approval 

favour vertical integration, giv- Certainly the Tidd Strongbox regulations in each country, 
ing the manufacturer control example of a manufacturer . As well as the cost of build- 
both of final product and com- specialising in a particular a °d transporting the 

pnnent input. This is the route technique which can be sold trailers there is an additional 
now favoured by Mr. Fred cither as a product or even as £1-500 fee payable to the 
Davies, chairman of York know-how is an interesting one. Ministry of Transport. The total 
Trailer. It gives him both the Mr - Tidd claims that its sand- is just too great for the com- 
opportunity lo squeeze extra ™ch boxes are as strong as steel muted small man. For the small 
margin uut of the cml-product hat significantly lighter ’ And man trying to grow it i s a costly 
while at the same time increas- havlug decided on the technique gamble that does not always pay- 
ing export potential :n a world <>f manufacture they have stuck otT. 

markei that is increasingly lo ir - They have also recognised Once in Europe there are 
tonkin” to local manufacture. ■ the need not only lo specialise opportunities for joint ventures 
1 While dexSnSn" emtniries in m ^hod of construction but both in the choice of compon- 
mav quicklv be able*to establish » the type of customer the pro- ems and in sales, servicing and 
simple assembly workshops, ducts arc aimed aL repairs TJis is the route that 

and ex’en produce their own Hector Tidd expects to take by 

steel bars, it will take far selling a specialist product or 

longer to develop, design and rh r n u eh° 

manufacture the more coropli- In its case Tidd has been S^ofiLi l n eatabliSi ? ed 

cated components. able to sell strongly to food ?ep !5 2 

But the argument that the manufacturers, retailers and Dase 111 

specialist assembler will win the wholesalers as the boxes are „ 

dav is one that also has attrac- smoothsided end easy to dean. “® J™ ** dd 0%er ' 

lions. Component commonality The choice of St. Neots as a Sri! t hfL a £? 

is a development that seems manufacturing and marketing still be able to offer the benfits 
bighlv likely in an EEC that base was made on the grounds ?, f ® fficient manufacture in the 
pvenhiallv makes up its mind Of suitability rather than look- u ‘£l' J 

St relations In that ing for an area where there . 15 undoubtedly a great 

case the bi- component manu- were more Government induce- deaJ °‘ expose within the 
factiirer* will need as much ments. And Tidd says it is f ma l companies in the U.K. 
S « they "5S nu, st cr tn Phased *0, the cltoire. Sf hi E Uv 

be pnmpetltive. More difficult has been the developed enlreoreneifrial 

So there will be plenty of attempt to spread wings into JElbcareftd choice^ alliS 
hits for the small assembler to Europe. Hector Tidd is still ^nd a ratb«- beti^th™^™ S 
choose from. And he will have determined to tackle the market g ® offtLndS 
tnc. added of JJJ JL"1 Holland I but an^EEC taUUbm. to arrive. 

— ’ -*u- 

capital investment coupled with points the difficulty of findin„ 

close contact with a smaller really good agents who will work 


Hotels rent rooms the wav TIP rent trailers. 
They' re there when you want them, but not if 

■And like all the best hotels, TIP offer 
customers a pool to dip in when they want ro- 
. Except ours has 1 0,000 trailers in it. In 1 S 
different trailer types. Available from no fewer 
than over 30 strategical I v sited rental centres 
throughout the UK and Europe. 

Which means wherever you’re going, 
whatever you’re hauling, there are TIP trailers 
tailor-made to cope with the load. The route. 

The climatic conditions. 

And just like renting a room in a hotel, you 
know precisely what you re in for before you 

commit yourself to pay for it. 

So you can take on extra commitments with 
conlidence- Without committing yourself to the 
expenses of buying and running extra trailers of 
your own. 

Gone are the days of buying first and asking 
questions afterwards. 

For more information please contact us at 
Head Office, Transport International Pool. Star 
House. 69/7 1 Clarendon Road, Watford, Herts. 
Telephone: Watford 463 1 1 . 

Telex: 8^7 326. And vour TIP area 
manager will be in touch. 

W c’ve plenty of tch im tor 
customers lie you. 

ii- 4 4 




Fmancral Times Monday May 22 1973 


■ I'- 




U.S. interest rates dominate market 




A*, life Coupon 
Maturity years A 

Lead manager 


interest rates hardly changed last 
week the prospect for further 
risen in U.S. domestic rates 
currently dominates the inter* 
nuhonai bond market. By Friday 
nicht the indications from the 
New York money market were 

that the target rate For Fed funds 

— the charge on money which 
banks lend to each other — was 
7; per cent, a quarter point 
higher than earlier in the week 
and three-quarters of a point 
higher than a month ago. 

The news that the latest U.S. 
money supply figures, recording a 
large fall in the most recent 
reporting week, had pushed the 
rale of growth oven of Ml (the 
narrowly defined money slock i 
back down towards the target 
range again did not seem to have 
altered ihe Fed's intention of 
pushing up interest rates. 

\ clarification of the l rend of 
d"llar bund yields will happen 
ihi«: week when pricing is 
e\ peeled for several of the Yan- 
kee imnd> »n offer. The upward 
pressure on short-term interest 
rate*, which Hip latest Fed fund 
indications suggests, comes at 
a time when the yield curve is 
already much Hatter than inter- 
na lien a I investors have become 
.iL-cusiuntcd to. To lake the most 

extreme current example the 
nominal interest rate on the 
seven-year Volkswagen place- 
ment- which is reportedly being 
arranged by Commerzbank, is a 
mere half a percentage point 
higher than the rate on over- 
night Eurodollar deposits. Even 
after allowance for the 1J per 
cent selling commission, the 
yield to final maturity is still 
less than on one year money. 

The terms of this placement 
are tighter than on other offer- 
ings on the international bond 
market at vresent. However, 
unless international investors 
take a more optimistic view of 
the dollar currency than secon- 
dary' market demand has sug- 
gested recently, tbe comparison 
of Volkswagen with money mar- 
ket rates suggests the kind of 
pressures to which international 
bond yields may be subject, if 

the latest developments in U.S. 
short-term rates are nnt 

Some issue managers have 
already taken account of this. 
The terms of Ontario Hydro's 
issue do not look over generous 
now but when first announced 
they were said by some to 
reflect interest rate expectations 
rather than current yield levels. 
— as a result the lead manager 
is expected to open secondary 
market trading today within the 
selling group discount Tbe argu- 
ment is even more true of the 
9 per cent coupon being in- 
dicated by National Westminster 
Bank on its eight year issue. 

Tbe most surprising feature 
of the NatWest offering is that 
it is part of the bank’s normal 
fund-raising activity and appar- 
ently has nothing to do with 
its S300m proposed purchase of 



High Low 

99 M (19/47 99.15 <U/2> 

9437 (19/4) 9333 (13/1) 

Medium term 
Long lerm 

No 19 
9932 737 

93.71 3.38 

Mas 12 
99.62 737 

93.76 SJ7 

Cede! ... 

(nominal value in Sm) 
U.S. dollar bonds 
Iasi week previous week 
13733 13403 

3933 1.008.5 

Other bonds 
last weak previous week 
31IL1 528.7 

285.2 2553 

National Bank of North America. 
It Was emphasised on Friday 
that the current $200m issue 
would have happened even if 
the proposed takeover had 
never been mooted. Tbe market 
will therefore be expecting 
further fundraising by NatWest 
if tbe purchase goes through. 

It was also made clear on 
Friday that NatWest has no 
plans for an equity or equity- 
linked issue in the foreseeable 
future. Whether it would be 
happy to raise Funds on the U.S. 
martcet in order to finance an 
investment within tbe U.S. is 
also regarded as questionable. 

The terms of the NatWest 
floating rate note (FRN) are not 
particularly tight except in so 
far as they will stretch the 
maturities habitually seen in 
this market — 12 years is excep- 
tionally long for an FRN. 
However since the main com- 
plaint in the FRN sector recently 
has been a lack of good quality 
paper— even a lack of paper 
generally — the maturity is not 
expected to be much of a drag 
on the issue. 

The European investment 
Bank's latest dollar offering is 
generally regarded as being on 
the tight side. However although 
formally presented as a standard 
Eurobond placement, it is 

expected to take advantage of 
a recent relaxation in selected 
foreign stocks. Management 
group sources for the new issue 
said that as a result of the 
change, Italian investors are now 
permitted to purchase the 
selected stocks, notably issues 
by European Institutions, as 
a part of a switch operation with- 
out having to make the onerous 
50 per cent deposit with the Bank 
of Italy. 

One notable feature last week 
was the resurgence of Canadian 
dollar issues. The Canadian 
dollar closed the week at nearly 
91 U.S. cents compared with a 
45-year-low of 8632 U.S. cents 
in mid-ApriL By the end of last 
week, the secondary market 
prices of bonds was slightly off 
the high points reached earlier 
in the week. However, some 
houses have already started to 
approach potential borrowers 
with a view to reopening this 
sector should tbe recovery of the 
currency continue. 

The D-mark sector was helped 
last w$ek by the Bundesbank’s 
moves to inject new liquidity 
into the domestic money market 
However, uncertainty remains 
tbe major feature particularly as 
the domestic bond market is 
weak in tbe expectation of a rise 
in interest rates. 

tOntario Hydro 





. ^Occidental 



-ft Australia 




1 1 
















tfCCCE (g’tecd Ranee) 




Cana da* r 








Dominion Bridge 




tfNova Scotia Power 




ff Ontario Prox. 




tt Finland 




5 Tyco Laboratories 






J** Volkswagen 




Nat. West 




fNat. West 




fBanque Worms 


. 1985 




,}/ .V 




99{ Deutsche Bank 

99 Dean Witter 

«• Morgan Stanley 

* Morgan Stanley 

* Goldman Sachs 

* Goldman Sachs 

•• Salomon Bros. 

* Dillon Read 

- Merrill Lynch Int. 

* H umbras 

* Orion 

* Merrill Lynch 

* Salomon Bros. 

* Salomon Bros. 

* Kidder Peabody 

drset. 1st. Ban. S. Paolo 

99| Commerzbank 

* County. CSWW, Orion 

* County, CSWW. Orion 

* CSWW, First Chic. 







7455 ; 

bid. Bank of Japan 
£§Nippon Shinpan 
“Danish Export Fin. 










3 i 





Deutsche Bank 

BHF Bank 


3,79 . .-j 




k ; 


JEur. Invest. Bank 







735 ^ 

t : 

| Mortgage Bank 

(g*teed Denmark) 
tOest. Kontroilbank 












Banque von Ernst 


4555 & 

4 D . .. 

W.r m 















Hikko Sec. 

Daiwa Sec. 

.a, :i 

ru. ’ v j 



Baji Nac. Cred. Rur. 









KFTCIC, Merr. 

Lynch Int. 




•. 4 


• Nat yet priced J Final terms •* Placement _ t Bnatin* rate net* 
tt Registered vrtth US. Securities and Ew*ang* Commission 
Note: Yields aro calculated on AIBD basis. 

I I Minimum 


Purchase Fund 

§ Convertible 













Slav 1 
1- , 


iu v 

Mav I 

1 1 

I May i May 1 
1 17 < J6 j 

[ 1978 

luuei traded.. 


1 679 


» ! 

18 ! 

1 Hutb 






55.68j S&Jij 

| (17(6) 



K«« Blebc. 

New lows. 

Rise* and Falla 

| Ms y 10] May Id; May 17 

l.BOlf 1.903 
570' 790 

9591 690 

372 422 

138 207 

35> 40 

Hyrh Lon- I Hlfit* j Liv 

ti, In- trial .. 

546.65 850.92' 


864.30 | 

1 846.78' 840.70 




1 41.22 

88.47: 88.591 

1 17/5) 

(121 fa , 

1 U> 1.73 1 

| (2/i.32j 

H ni;B n-l-* 


08.64. 88.811 

88.47 | 

! — 

88.59 j 

1 1 



1 r4iik t »,n... 

Z29.I6' 210.91 


229.65 . 

227.94 227.75j 


)Sa.6l ! 

279.68 1 



(9(1) 1 

: (8,7/32) 

1 li'llH- 

MJ.26 104.Q9 


104.09 | 

104.43 104.60; 

1 10.08 

102.64 | 

1 163.82 ! 

[ 10.54 


• 1 





54.560 42.070 



53.900 46.600, 



- I 












C, untuned 









180 .Er 

182.89 rlO.-b) 
161.72 (19,6) 

lb2.dU Ilf'S) 
170.82 Ull.-l, 

10805TT0 CotnpoMtei 1128.5 



r 110.6 

1128.5 (19/6) 

i9<,.2 <30-1* 








218.7 (l.ei 

185.0 <£U,41 



223.51 223.0 


226.5 (13(6) 

194.9 1 13/31 

•Ha i- .ii Index 1-1111111:1*1 I i'hi Anan-t 34 

l>i-l. .nr. tivM t 

May I-’ 

Slav a 

April 28 Year ajjn (approx. / 

Slav : Pre- - 1978 i 1878 
19 : ciii u« ! High 1 Low 





Australia?*.) A9J.S4 491.49 - 494.49 ; 441.19 
; HE/si I (1.31 



1 Mav : Slav \ Mar 

1 19 ; IS . 17 I 

Mav | 

16 j 


ra — 


1 15 1 

12 1 



i 1 


:liMii-*(iiaU- 108.52 109.11 110.31 






i (17)0/ 



[ 134.64 I 




(C.iiuj.'-Kc 98.12 98.621 99.6»' 

i 1 : 1 



| (17)0) 



1 12S.i*5 I 


■ 1(6*32) 

Belgium (|i 98.74 
Denmark (“ 95.0 
France (tt) 66.8 

I 94.98 

,101.161 39.74 
I i8rt» i uOibi 
! 96.L5 94.00 
(Wit I (5)2) 
j W.7 . 4 

■ (25.4 1 | Ufa 

1 812.7 759.4 

■ (lvJ/Z) j (17,6, 
* 82.1 , lb.0 
. (10.2) l 14|4> 

Spain (dil 104.15 
Sweden i<)j 373.73 
SwibwTdu] 283.6 



110.78; 87 
Mfi» -, lll|5v 
(At) i • (6(1) 
385.6 • 273.0 
(16.51 I i2b(*i 

| May 18 

May 10 j 

May 3 

| Year bqo (approx.i 

ltd. dir. nrld % 

] 4.85 

5.04 | 


| 4.54 

*i*l. (’ K l[m ■•* 


9.16 J 


| 10.37 

.-1 ; t,*,«l. Ui-11,1 _l It- 1,1 


8.45 I 


“! 7.72 

GermanyCri- 769.4 > 764.9 

i i 

Holland <M> 6L0 j#0.7 

HnngW 4*2.15: 468^2 1 ^15; 383.4. 7^ "STM/TS" S 

it.* £«• 1 * 42 ! & i as aw;. 


Indices and base dates (all (use values 
100 except NYSE All Common — 50 
Standards and Poors — 10 and Toronto 
300-1.000. Oie las named based on 1975i 
t Excluding bonds. £400 lrninsmals 
1 400 Idds.. 40 UnBilea, 40 Finance and 

bojb J sb.40 

• *6/3) ’ (lu/l) 
la) 406.48 . 406.42 ‘ 4ib.ll 1 JW.U4 
(l*»/4) • (4»1| 

Singapore ! 515.25 . 314.69 ; 515.23 262.0 
lA*. * (18, bl , (WO) 

SE 1/1/78. 
m> Commerzbank Det. 1193. iSSi Amarer. 
dam. Indusirtal 1978. ifl) Hans Seog 
Bank 31/7/64. r(]J|) Milan 5/1/T3. nn Tokyo 
New SE 4/1/88. (to Straits Times 19GB 
ici Closed. fd> Madrid SE 30'11/TT 
ce> Stockholm Indostnal 1/1/58. (ji Safes 
Bank Caro. (u> Unavailable. 


Mav 18 


Axuuoz VeraJch...] 



Haver j 169 

Bayer. Hypo 1 277 




462 (. 

226.5 -1 
136.71 + 1.4 
+ 1 

Ham.VerelnnbhJ289.5«ll+ 1 
L-iUlm ISO j ..... 


C'ibalni.Neri.wrtb 1 

Commerzbank i 

Coot Uumiulo^ 
Deim lee Hen 



Dtuintat HeaW._ 
Dreoriner Bank 

D.vekerbotf Zeint. 


Hapag Lhjv'I j 

H/trpeoer... ..J 

Hnectrsk.. ' 

74.5 4-0.6 
295 + 1.5 

243iO. , t0.8 
151 .43 
243.2 ad +5.7 

145.0! 4 3.5 

116 1 4 1 

202.5 4 2.5 

156/4 -041 

46.7 4 1.4 
120 ,+0.6 
155 45 

298 1 + 2 

Hoescb j 

Hurteo - 

Kail urtd Sale J . _ 

Kaufbof - I 2ti6.5 +4,5 

K icekner UU UOj 93 .42 

KHD I 173.6> 4 0.2 

Krupp 94.5—0.5 

Liode 23 lm -+2.5 

Uiwenbrau I00™.|l,47o« ) 

Luuhaniw .J 112.7-0.7 


Manna a iann J 

Metal ige- 

Muiicttener UuckJ 


DM 100. 
jehermg ... 


5>u*l Stacker—...— 

Thyw+n A.G 

Varia-... 1 


VerwniA tt'M Bk| 







lie iri 

108-7' - 



249 i+4 
18.3 ad -O. 
166.5 + 1 

285XI 1 

200 +4.2 






43 AS 












28 . 12 : 


































































Mar IB Rand 

Anglo American Corpn. — 5.09 

Charter Consolidated 3.20 

East Drteftmteln 11.73 

Elsburg L90 

Harmony 5-15 

Kinross - 6.00 

Kloor - - 8.90 

Rnstexr&ttrg Platinum l.iS 

St. Helena 713.00 

Sombvaal T-80 

Cold Fields SA ta.00 

Union Corporation - 4.49 

+ DJO 


De Beers Deferred 
East Rand Pty. — 
Free State Ceduld . 

President Brand 

Presldeni Steyn .... 



West Drlefbntetn . 
Weston) Holdings . 
Western Deep — ... 

■a.... 5.63 


- £57.00 

........ 1j£3 

- 12.00 




t29 JO 



AECI - — 


Anglo- Amer. Industrial ._ 


Barlow Rand . - 



CNA loresnnents 


De Beers Industrial 



Edgars Consolidated lav 



Edgars Siorcs — . 


Federate Volksbelegstags 


Croat er-man* Stores .. 


Guardian Assurance (SAJ 


Balctcs — - 







OR Bazaars 


Premier Milling 


Pretoria Ccmeot 


Protea Holdings 


+0 05 

Rand Mines Properties ... 



Rembrandt Group 





C. G. Smith Sugar ... 



Surer ... — 

03 4 

SA Breweries 


-0 01 

Tigers Oats and NalL Mlg. 






Inv. S Prera. S2.60 to £112J^ 
Effective rate (1-8070) 47j% 


llcli !-•* 




50 ' 

25,. i 
35'a | 
•IBS . 
3 J:-a j 
5U'« i 



50 , \lu»»n lal» j 62 U 

1S-C |^ .... 2213 
3 1 1 A Act iik I. 111-.V Ca-k] 40l» 

22 » : \n- l , n»lt..*i* | 28* 

5 2 ->4 Vif>. 1 5u 

Z£ :\lian Miinimlum 29 

33-i Vi.i« 46i« 

17 : e ' VI lee. Liul nim... I 8 I 3 
17( 2 VIIcrIh-tiv |\.ui-r I7ig 
3414 ’ (llii-l 1 ' 41 l a 

18 -j , Viltcl nt.ire* 241a 

22U i.Vili- I'lwloieni... 32 

31'a j \H.\X 36aa 

227g ; ViiK-nula Hew> »■ 32le 
9 in Anier. Alrluu.'i...; 125® 
39 ij -Auu-r. linuhlh....' 6Q 
54;i) 4 im*r. l)nuuUa-l: 61 



Vin>+. Can,,, 




- \iiH-r. Cyan* mid 




liner, kin-. 1 *■■■'' 


55 4 


\iin*r. K*|,|e"..., 






Amer. .tle,liiiii..J 

261 4 

tiller. M«4i'i 


4*3 ; 


\im*r. Nai. liu*.. 

40 >4 

JJ’-n Xnii-IKPi, 


-■•.I '■ 


Vnu-i. m„iv- 



(nm. r,-i.\ 1 pi.. 




lb . 



18 : a 

1*4 ij 

un* : 






3U « 


X 11, Ii..: I|.,-killc. 

30 I; 

L5 ; 


\ii1ii-a*ei Mn j-Ii 

114 -,.v 


trim'* >i,*i. .. . 


19 V. 





t nim.-ra Hi, 


—0 ■ 






tMilnlnl «'ii. . . 



til. . 


51 'I 


till,- l)«in I'li*. . 



B ’ 



1*7- 4 

\\.v, . . 



44 'j 

Vi, >ii I'rali,. 1- ... 


2A 'ii 

Hnil i !**> I'li*' i > . 

24 fa 



I'.-ink ,. 


39 „ 


IU,|l.,-r. r,. N .t . 




fill 1**1 1 Ml . , . 



ttaMi'i '1 mi riyl,. 




(lintl/,1- . 

24 >, 



i-nl'i. k*-u*-*,fi 




II* -II A H..i».*li 

20 >a 



L4i‘l|«kl\ ..... 


!!■ ni^iu‘l l.'» >i|i. *H\ 

3 -’i 



Ikll,., |„.||, >t,1*l. 



1 >m -k .v Do-ki-r .. 

20 1 a 



i'h hi< ■ 



i'i-i, i* 1 -ml, ...... 


51 '.. 






|t,r-^ VI mi|,, ... . 



Dinuin 1 Hi 



12 -1 

I'm- -«ii ■ V‘ 




,'ri-l*.i Mv 1,'... . 



I**i II. Put. \Dli. . 

15 *n 




IS' , 

if.-,, II W|,-lf 

15 f S 

Z 1 


IJ...-» ru- l-rn- 1 




.. ■ 

33 : a 


.i m At n 1 ,-■■ ... 




1 1*11-1 IH.-I>.|1 \lllll 



High I L«»w 






17 - . 










53: , 




54 : 

13 -l 
SO -'A 



44 s 
22- \ 
19 1 s 
20 '. 
28 ? 

- l v 
44 ' 
5J - - 
25 ,, 
23 ; 


32 1 

58 , 

1 1 Lx 



43 v 



19 .. 

27 j. 



10 lit 
35 '1 
15 ; 
14 s 
51 >*. 
2' - 

8 ’h 
31 'a 
18 * 
ax- - -. 

25 1 . 
34 1. 
29 ‘t 

14.. -. 
23 -a 

l , IIM..||j;ll- . .. 

• MIM'l.HlI ISl'ltK* 1 
Ulllfli llHtli1')l|ifl.< 
L HI llll «• >11 . .... .. 

. 41 I H'l .V (ll a Ul > f A» 
LNllfl Un’t'fi.. 

• Hii-ii-t'-ni I'm* 1 • 
»-mn«- -i- 1 *■> 1 ■ .. 

L.-.IKM A >.)) 

■ riiiiil«*i^l . .... : 

1 . .--im \ 11 - mil.. 

. Iw-i- \t Ail hull nil. 

^ lll-ll. i . -hi Ilk. .>Y 

». hf-vl-i^h l l i-n>l.. 

.•.'In l-;-i Iln-lL-i* • ' 

'l |i|iHIJUI..\ 

Ou.y-ier 1 

i 1 hem 11 a 

emu.. Mim-timi 
*.' ili.iW|* ; 

C 1 U 0 ser» 1 . •• 

,'ity I in ■.“-1 'ill*.-..: 

U*« L'.x'U 

■.’■■i^tie Itiim.... ; 
^. 11 1 111 Vikmaii... 

. 1 . ■ .l.diil .in. 


■ .■iii.lii.*-l.’.u , lAi>‘ 

■ ■•ml i-i-.Ii - -ii hm:- 
. ■ .. llt.ll— 1 1 - hi 1-|. • 

.”i.r«lh Kit- 1 " 
.in’ *» 'll. 14- 1 

. •■iiini, -**1.-1111 « .. 

1 '.■ini -nil r>-ix , n«’* 

. ..mi, ).ii*- In . - 

_ ■ -ii 1 ■■■- 

. .> 11 . I,it---il V.) 

.■■n-wii . .. 

\hi. fm«.. 

V ■■ll-ilTri«T l l .*tirr 

i,-. *rl iiii-iilai 
1 til mmitai t'll.. 

... ■iiiii>i..-iiin: l.*lr, 

.-.■•in, I' mIh 

.Ciaijt-l lu'tus....— ' 

70 *j 
17 Vi 
10 - 3 
28 '-. 

58 lr, 
48 >1 

I Jt-.- 
24 i* 
31 A 
85i 4 


19 1< 

I I jj 

29, t 
43 Sa 


21 - 
43 it 
1' a 
36' 3 

j** ip 

39) 1 










ai. B 

281 4 
30 it 

26 (j 




49 ; 8 
47 >« 



21 -a 
104« : 
o5 | 
494« 1 

261- , 
171« I 
35 ( 

37 In • 
46 1 a . 


«»• I 

21 • 
49i 3 : 
375a : 
40ia j 

30 , 
234* . 
394a ! 
24 s 3 1 
Cl'S j 

22 I 

36>2 | 
94* I 
251- I 

31*a i 

12 I 

14)8 I 


10^4 ! 


17) 4 
59 SB 
54 Ig 
51 U 
30 -M 
50 '4 

31 | 
261- | 

8'8 i 

29 . 

2 g.fl 


29 Jj . 
26*4 i 
B'.i ' 
14 14 
26l a [ 
63 sb 
64 ig 
384, | 
171* : 
S84g ' 

39:3 : 

284 4 ; 

18) 4 

32 U 
27 14 
17 *1 
25 >« 

42 1 8 


41 Jfl 





45t 0 





13 ■* 

32 'a 
22 ! 4 

45 1 3 
42 >« 
24i 4 
22i a 




22l 4 

5> a 

16 >4 .Don I 

v.-.miu- i,iia»-....j 
CT*C int'n'iionai; 

'-'™ ne 

v- fi-.-ker Xal .' 

,Ln.«rn ZeilcrlMi-ti 
'. uniiiiiii- Ku-mei 
.Curt 1 w- Wright — | 


Dart Ia.1wtr1es.-j 


L*et Mrvnle„ 











12 ); 



41 1* 

■ply later... 
Detmtt Erii Kin... 

Dialta K<iuip,.... 
-Disney (Walt).... 

Oliver i.'orpn 1 

'D*-«r Uhenilua)... 



1*1, I^UIt 

I)\m.i in.iiikinr- 

IJtti-.- Piehtr 

h"-n Airline- 

)jt--inMii h»i*l>. 
1 -jii. >ii I 

I6»i Ih.iu I 

14>j Kl hiw >«t. liu. 

25j 0 hum...., 

29a. 1 inert. iu Klip-l nc' 
37l,j Kini-ry AirFr't)tlit. 

281. {Inibnrf 

2>u L.M.I , 

22ij Kiupilmnl 

251* K-niark...,, - 

18 . hi lift • 

431 ; ;Lsvti 

23 j F« IrvhlM limns 

34 . ) 1 - 1 . Up| 4. 

13 tiinnm Tire... 

24 :Fm. b.-*i*-n. 

16 1 Heti Van .- 

18 J* Jl-Tiurkore 

28*i |FI»ri.ia h)»er j 

30i* jl-'tiiiii-, j 

201; iK.Jl.i; 

40->m I Fop I M*iP*r 

27 -j* 
24 1 4 
345 1 

F..p-lll.r-t )|ii_.* 

Franklin Mint..... 
Fr.->|-.rl Uluornl 


Fitaina 1ml- 

A.).. J 


8*a -Uea. Anier. In(...- 

221, -U.A.T.A ; 

Tirai. Cable 1 

'■«. 1'ximniio — 1 

i.i'en. Lievirlo, ! 

'■enerai F*»«Ia....' 

limrni Mill* I 

VieneTM Min . 
*i*u. Pub. l-tll.-.. 

'•■m. oigiuil 

‘toil. Tel. Ele*t... 

tii-ll.Tyii*. ...; 

li.-np«i>i ' 

37 J, 
26* : 
67 : A 
28 b, 




• •••ini-li ll. V.... 


ii-'*.I.Vtnr Tire.... 


1 *'*111*1 

23 -a 

<il»T tt . Ii 

7 *p 

■ ii. A linn Par lea 


•jrl. ,\..rt Ii |i,jii.. 



(•uli ,c Wm-tuni. . 

23 1 j 

•iiini Hi. 


'Hrilihurlnti ■ 


: Hnnnn Milling.... 

;H,nil*. hle U er. ... 

39J t 

Hum* Cornu 


■Hence H. J 



■lieu let 1 I'ju-haMl j 


■H,<i„lav Iiiii- 1 

30 1; 


ll'iiivyir,", 1 


22 .h 

23 U 
10). 1 


60 -a 
12 *. 

H.-net j 

H. .- 1 .0-r|,.Amer.l 

Hmu-i.iii Ami. I. a* j 
Hum il'ti.AM. hm. 
Hiiiinn (L.b.i | 

I. L. Iiulu-ine-^.; 

I.\A : 

■ Intre-nu , 1 , Hand....: 

Iniiunl Steel 1 

in-i-ci. [ 



20. '-S 

26l : . 




35 v. 

261 , 

27 ’ 

l|ilL-n»<nt hueru- 

lull. PlAi.Mii 

■ nil. tlHri't-irr... 

intx. Mm a 

inn. •». ' 


inti. rui-*r. . . . 


I'U. Ii»-nd«-r . ... 
'•it. I« i. A tel. 

In rill..., 

271 i ■ 

II II^rnAthMla*. 

27 1* ,4lm Ualltr....^.^ 

49 J; 
30 i a 
177 fl 

27 J* 
2B7 B 
265 s 
16/ r 

39 i s 
44 i* 

2 Isa 




36 1 j 

25) ; 










29 :a 

383 4 






21 ij 

31) b 














28 :s 

26) ; 

26 ; 6 




29 * 


22. a 


15 »4 




52 U 

27 1 3 
17 3a 
25 1 4 






13i a 



13 in 










28l a 

34 ) , 


43 >a 
49 1, 

35) g I 
47l B 

28 Tg | 

3414 I 

20 '* ' 
261- , 
2°; 8 1 

20 i a 
241; ■ 
40. a . 
15S, j 

il ,a ! 

43H - 
38 ; 6 ! 

36 1 

48t; : 
161, - 
281; ' 

2b: 3 I 
5U| • 
501) : 

34 »a ! 

23la i 
377 6 ( 
4956 i 
37IJ , 
553a : 
671* 1 
565a I 
49'4 ■ 
411, 1 
32 ■ 

17i* ; 


16 J 0 ; 

44*8 ! 
56 A, ; 
22 ! 

23 u 

27 : 8 
21 U 
lfr; a 



84 Ja 
211 * 
21 i* 



85 >8 

+0 >4 ; 

37 1 8 


243? I 
431* | 
24 1 B 

19 s« : 

693, 1 
357* I 
39)a ! 

24 ; B . 
24% , 
181; ; 





23. > . 
177j . 
25 '4 

47a* 1 

263* , 

28'* Jx>hu» Uauvdie... 
66 Juhnaui Jt.bnaoa 
2434 J.ditifun Control. 
293i J< ij- Ala cu tact ur'fd 

23ia it. UartCrirp. f 

28 ' lyuaer A.mniui'ra, 

1-4 Kaiaer lodustnea{ 

21 1 , KainerSteci 

Si. N»y 

lBsa 1 Ktnut-'on 

401 a .Eerr JUcUee...... 

273a KfcUe Waiter.... 

383* Kimberly C»cr* , 

19Ja Ijtoppera 

42 ' .KiaiU....... 

251* >vmger C-o._.._ — J 
271* :Lea*e«ay Trane- 
211 ; Leri Straws...— 
255* | Libby Otv. Food 1 

26'; ]Li 4 *Ret (rroop.....] 

3 6. a ' Lilly (Eli) 

14V* Lit too tndii-u...] 
13 :U<ckbee*lAirta'Tt: 
171- jLixacMJu- Im1s...j 
I 8 S 9 'Lkiis l-'aan Lt.lJ 
20'* )L>-utriaoa Land.J 

333* I 

13 iLueav 5-lm «* 1 

SI; ‘L'he Y'unc-i'wnl 

91* |\!*>-Ui'tao • 

353g iMaev K. H 

29 >■ Aim. Han,*tcr... 

3V iMiia-r. „.J 

40 AlaraLhon (In, [ 

113* Marin*? Altilinml.j 
19 le ]AlambaJI Field... I 







23 sj 






23 >a 











ia: B 


39: 8 







4S7 fl 




High I low 





20TJ May Dopt. btorwl 

523* MCA 1 

211* UcUenu> ....j 
22-i M Jj-innell Di*uii.- 

16 la U -C.raw Hill j 

26 Uem.«rex 

483a Uwk.. .' 

13 it . Merrill Lvnuli..— 1 
32 30 : Uiwa Petroleum..! 

25'* MCill J 

43 U Alton Ming A lltuj 547g 

585* AluMi Corp. 64 

44s* jMuasantO....... ' 

39Sp . Alunraa J.P_ 1 

34;* ;.Vl«toto<a ) 

55 -Alurfbv Uli_.. 

461; 'Nil wo J 

253a AaKi> 

14 '..Nat iona> Can.— -I 














4u3 4 



i7 r» 

201* iNii. limii-en 1 22&a 

121; .Nat. Serru-e ItKl.l 1 56a 
291* '‘National ateet—{ 32U 

353* -‘.Naiumaa ■ 413* 

371* ;\CIL_ 541* 

15 !>epiuue Imp. . — j 181* 
211; | New hnglatul KlJ 211; 
33 ig New Eiuland Tet 34 
l37 a iNiagaia Mobaok; 137g 
93«i 1 .Niagara Share. lOlg 
16-« N. L. In.lii.irio . 19 

2530 AortoikAWts-tern! 2b 
54** .Nortb NaU Gxt...; 40 j* 
24 'A ton Mate* Pirn 241; 
20 >• .Alli-Cil Alrll4IC» 28 'g 
2U« .Ml»«w Uaai'iAp! 27 
lb'i Aonmi Miiiuu. SJOU 
2U 1 enl a HetP'l, SSU 

371* t**jil--\ Mailier .. 613* 

17*: Uhl*'. bllMAi. ..._.! 17Jj 
13ia Utin ..I 163g 

20>i Urvr*«?hsaui|a : 271* 

27'* LiHriut-niiii, 3 2 

19*3 Until, Illinois. 211* 

25i* I'aoitl Iiba ' 23 U 

18±t 1%-ihc Lbilauii; J 187s 
2ui* .Pa . r«,.Ui...; 801* 
4 -Htn.AiaW'in.' Airl 61a 
20 hrkn Uannirtn. 27i; 

26'a iFwwij lui I 241* 

2Ue 1 )Vn. Pit. a u._j 21t* 

ii ‘4 jPrtini 4. i ' 37 

27 l'ciin:j'ii, 2930 

1 •**-+:»-? Hm*; ! 9*8 

»?)• Pp.-'«ie- (•*. 343 b 

.Pei-thM, j 511, 

I t 

1714 'I'urki'l hi nor.. I 

t>2'2 iVfi - I 

2s jj in,.-. 

27i e 


2oi t 
I 6 J 0 

l*ln:u.iel|nia hlv^ 

' k*i, 1 i : |> 31- «rr 11. { 

r'niiiijo.Fotn.i'm -J 


73 . 




201 .. 

29 In 

23. b 

427 8 

Pitney b>*n(« j h4l| 

-l'w*:nn I 22 >9 

iFineer UiAD(d 17)* 

Pt-urvHi 1 6012 

8*+*n»: 15 

•PI*U lu*lu-liltt.. 305 b 
, I":* vJ 1:1 1 minl-H-. ! BSVj 
'l*nh *opv kwi..; 223| 
il'in*rroili 3l 

,rum_ j 171- 

:i/tiakis 1 . “wi* j 26 

Itapin A men tan 93, 

llarttem:...- 1 43:2 

•IU*A- „...i 28 

iKepublto StecL...| 26 1* 

27 1 4 
347 8 







307 # 










36) a 





69 >4 
2b b 
37 Ss 
50 ij 









111 , 











121 * 



Set IK. Id » Aleiali. 

Ky>nnl.i» H. J 

Kidl'p.n Morrell. 
B>.A-kwoli Inter... 

Kohm 1 Hm 

Koyxl Dutch 


Ham Ll,>s 

Kyrter 6y-tem.. 
laafewny St««M...| 41 1* 

46 ) B 










Su Joe MlnenJtj 
St, Ketf ■ Paper- 
aanta Ft ln,l»-...| 
Sail' Inrvat — _. 
Sasco IdiIb.. ...... | 

Schlltr u renine.j 


!Av«t Parer. 

,V"T Mr** -....I 

6 1, iSender Du... J 

.5e*Kram . 


seat IKvlHi.-k— 


Shell uu. 

197, 'Sea l«jtiuine. 
20' a 

221 * 




30 ; a 






fuel- rpui-unri.., 


sigruvie C- ,iyi..._ 

,5'mplHlly Cat — 

l; 7'ii4ei 


[St* 1 It'MD . . 

■N-mru.nii . 

•Southern c«i. k.1 
Souloein Cm... . ... 

•Siiio. Nai. Ite- 

-xiitliei-n Pacil).-. 
443, 1 Sout hern Hallway 

271- 1 221* BtouUmuu 

IS 1 * ' ??* r' K ' 1 K-'i-tuires.l 

20i» , 15i« |sw?m Hutch— | 

f37j 32. ’a ;S|wri3 Kami 

267a 215a 6gmh 

27 I 22); suiuiUinl Uramlr.j 
441, 1 245s jpbl.tniCa . iinntia' 
62*4 44 (sbi.Clii (o*iiBi 

701* t 584a ’hi. Un Ohio 
f? 3 * ' ' Ul,IT fl'eunea 4 

16 127* l-lernm- L)ni* 

66 43*a I •UMelwkei.— . 

433* 335a pun Co. 

4830 3150 , sun. m nm. I 

138 7 8 185* uioin 

15Sa _5li) jl.^un-anrir.. 

1001 s 










30 >4 


i 6 i* • 
215] I 

5714 ; 


217 9 


20 3 j | 





36 14 

2" 5a 
211 ; 
307 a 
297 B 
37 i0 
29 >, 

17 'a 


26 ij 

24 f; 
20 is 


325* jrekiimiix_ 

571* , I' vne 

2»* .Telex- 

28), 'Teneco 

z6i 8 











38 3] 


34 1 0 
397 8 
S2T t 

19 >0 
41 f* 

44 la 
42 'a 

111 * 







iii [fsss. r r.^f.i 

173* jrexaicuii....— _J 
611 ; r*w, — J 
?9 ‘H lexaa Uil,t ■«■». j . . 

1?*® £***■» Ifiiiui*. ~| 191* 

345, J Time Inc 44 1 8 

22 U iliniesMirrpr.—..' 29lg 

411; il'iniken I b|l 4 

31i8 I (rune 1 

13Jg -L ranimcrua,.. [ 

_ •Lnn-mi-r 

175* ’Iran**,* ... 

321; Itbuk L 111 ..U i 

21»] Vnin-PH, Intr'n; 
9sa 1 1 rail. VVnrhi All .! 

26i» :itvrellei^ : 

1810 I Irl Com inetio,. .| 

273* jT.ICW 

20 1 g Alii bent urv > n*i 

19^ jU.A.L. ; 

183, |UAK(riJ 





121 * 





i*jin tiii 

LMi.H.ei \» .. .. 
t hi, - ii Iihih.-i rp - 

K-l'iun i. nrl.i.1 

. ■- ,ij.*ti ti^iiueneL 

45?a joiiiuu ui tain.. SI 
|f )V-irt;._..I 4BJ* 





251 4 




2b l, 
di i 9 






High j Low 



I May 

20 70 | 

531* I 
19) ., ! 
16i* ( 
943* ; 
B2Sg ! 

17Sa lWooiwonb 20Jg 

J. J'Vyly 5 

41 Verec : 325s 

15), IZapata 151* 

113, IZenlth Ua.lio.-.-l 15 
93.-;- ,L‘..-.Tirer !9K)J 194.;- 
TBOi* US.Trre.-aj%7e,86, r807 a 
6.072*11.6.80 Day bilh-4 6-34^ 



32 1 8 
20 i t 

7 5, 
30 )* 

38l B 
10 1* 
201 - 

4.50 j 

10 I 
2i 4 « I 

29U 1 










14 la 
I 8 I 9 


AWtlW Paper. — | 
AgnUu Eagle...— 
(loan -Aluminium 

Automa Stee< 


Bonk n* Montree 
Bank Nov* b.-rcla| 
Haal* Kewxin-e*.. 
Ben Telephone.— 
How Valley lod... 

143, I BP Canada..... 

14 ■< Ibratcan. 

2.06 !Bnno)_ ...; 

34 [CaUpiri Poner... 
Ill; I'Jamllow Aimer-.. 
Si* AiauaUa Cement. 
970 ICanailaKWUn.. 
22 U loenl mp HnkC-otn 
18 jCaiauia Indnsi,.. 

16>s l^*n litem.- 

15l* -Can. Fk.-mi- Inv.J 
51 iCan. buper i.tli„..| 
3.05 ;tvtlag O'Keele.. 
Bt* ]Cm*«alr Ateaw*— | 

177s iCbieftaln.... 

23*4 'Coimnco 

21 Ij | Cons Bathurst 

1S>* L^naumer (jaa i 

61- JCoaeka kewxiiee-1 

71; i'-Vetatn kleb 

6*10 LNujd l.'errrui 
62 iDeaiwai Mlrtee—l 
70), 'Uom Mines— —I 
631* itkjine Petroleum 
215e lUoniiaajti Uridgi 

143, jUoratar. 

12 Itlupauil 

163a jPa'cun'ge Ksckie 
691, Fruit Motor Can. 



lieu, la, ,..4 



Iiibui Hel'ukDiie 



uuil Uil Conuia^ 



tU>* iu-i bi.v Can. 

33 ly 


tL- in^er — 



U- un* Oil -A - 



disiaon Hay MtU 



du lun May 



riuiOTD Oil Alias 









Imperial CJiU__— 



loon 1 

7l- L!nip-ya1 

6«S t nttc.1 I 11 xu, I*... 

25.8 t s u-dy-n .— .. 

21'> USln .. 

2 1 >0 .5! b.-- 

251a *.5 5i..e 

321; k . i ix*lit).,.. c ie«. 

I 8 I 9 .V IiiiIimHp... 

13ig ■■ •nsiuu. kieet.-.-; 

16lg Ill‘ll«lrt1i......^.j 

| 291; ■•timer- L.flimt».| 

; 2o3e hiirtief-Uutiwrl.l 301; 

• 57'- I*' ,a *e-Min - meii'l 231- 

. 24t* f4V. k .F„ u „ : 

1 *“fo ''ester 11 Hun .«p 
: 203* >V o*tern (mi n 
iff* -, Vwicre L'ni'm.... 

i 1 1 ’ *' "*1 in; hie EieL-i i 
! ‘4 Cat Bat' 1 

I S2f' , }! u ' erhaeuw - -I 

■ rt, *i* , |Mrt ..... 

• f® 1 ’ ;W h,, «Ciai. hid... 25^* 

} 16>* « , 10*0 

i 21ia I'VUeonsin £lect-l 277, 

29 A* 
41 ig 

36 i t 
16 14 

25 1* 






20 1* 








2b7 g • 
161* | 
14* | 

103a - 
3L7g I 
18Sa I 



17 >4 


334 j 
35 [ 

184 | 

61; Iraiai— 

94 tulao.i Ku.Gaa. 
13 1* int'p.vPipeLine 
13 ttalser Betourw. 
67* lsiurtFiaCor|> ^ 
3 J5 Lubuiw Corn.-ti’. 

16*4 jJl-j'ioiii'u Dl.jOII 

9 fg Majr*ey Perauanm 

204 jMcIntyre 

28ij [Aloote «— ...j 

21l 8 






si 4 

1U1 8 , i'nia* 

A>>niii'la Miuee..., 
Xi*roeu L'uetvj...' 
Alim. l'e*tM,m. ..| 
.'umw On k tie.; 
uakisoo.i Pei-'rn.j 
rot'ifif Uipper 21.1 

i'«L-:h*-Pei ruieumi 
1 ) 111 . Can. IVCni. 

Pat uti<— 

/•enpie- Liopcs,.. 
i*hwe Can i. On. 
I'MCL-rDeveio) mi 
l Wer'.orpnpi: - lij 







22 1 9 










Quebec 51 1 1 ruei'O 

ihniuei Oil 

.(I#) stall. 

Sw tllpini 
ttuyaj at. oi C-u 
tbiysi 1 ruai 

soet-tre U’soutre* 


'lie. taiuulH 

-lierntl li.Uiaer 
,ieii-n»U u 

■ lllIpKlflt 

•tea. uf Canxilu... 
U+p U*vh Iron . 
luucu Canailx ...| 
ueutib.. l5jm.Uk 
t'ra/b)CnnPit+ Li> 
tram Mourn Oi- 

Uinon Chi« j 

L'td. MacoeMlne- 
tV+ser Hirain.... 
West Coast Tran. 

iV—iim r,*.. 



32l a 



20 i< 










10l a 















































261 * 




3. 85 
















„ 84 » 


2.7 j 
37 ; a 






Securities Rand U.S40.72i 
. (Discount of 37.17%) 


May 19 


“I + - 

% I % 

a21 3.4 

Bortu-ni Teaenut 
Klaerier V (FI. 20). I 
Knnte N . V Jtearer 

Cflat UrocadeaiFli 
UetnekeaKFiJiS). J 
UocROven* (F* JD)i 
Hunter lUFUOD) 

EJUM. (Fi.lOl)._ 
lut. Muller (120).. 

Naanlen (Pi. 101... 

Nat. Net I I1WF1IO; ..... 

NedCred Bk(Pi Jffl S3.6n + u.l 
Ned Mid Bk (FlAdj 189.7; +0.2 


A bold 1 FI. SO) _....! 106.Srd:-l 

Akro(Fl.20> ; 27.6-0.6, 

ALgera UoktMlU^ 551.5 +2.6 |A23.&: 6.7 

.YMKV tPl.10) I 85.0 +0.2 

Amrubuuk i Ft_20jf 76. lid +0.1 

Uijeakorl 93-5 —0.5 

tMufl’eai'm (PIC) 120 : 

70.5, +0JZ 
270id: +JU-6 

143.51 + 1 


35.0i + 1.3 

101.51 + 1 ‘ 


43.8n5 — ,.3 
111.3' I 

23. b 

94.61 s.4 


)d.9| a. 7 



teid. : Aiked. s Traded. 8 New Slock. 

Oce (Fl. 20) 

| 145^!- 1.6 



Van Ommeren... 




Pkkhned (Fl. an 

42 l+l 



Philips (Fl. 10).. . 





83.S— o.l 



Ho+ecMK 30/ — 


j.\ 2 bb 


Kuilucr, (PL aui.. 

126.3— 0.6 


Ij n-e al,) 1 Fl. &U).. 

131.5 -0.3 


5.3 1 U u ich ( F ! -H) 

123.7m -3.9 |3a.7& 

a . 7 



iievnn GryPi-2Q 




r,,k vi'Ps.i Hidb.h 
Unilever (Fl. aJ) 



111.80 — 0.7 ( 42.b 

' lalimlies.lnc.SI 




tt estiau’du.Baok 

3920 +2 






Price | + or 

Div. 'Yirt. 

May 16 

Krvner • — 



A n* lei >bs d ken .... 

135 14 



425 —11; 

1213* + la 

1 hi m, i»e frank 



Fk't A'lati C*-1. ... 



Finnn n&nlCefl 

126 I ;:— 3 



1 vr. By-^enur.... 

3441;' + 1; 



For. Papir 

• O 


Had iie-tmnk 

123 l;l 



G . ,V 'th 'n H . ( KnCO 
N'«" Kaha-> 

208 1 + 13, 





82.;,-. S'; 



136 , + ij 


■Hnih. berenti^n. 

380 1-11 





May 13 


Ai**t- $ I - 

ACM I h (2b cent) 70-72 

Ataow Australia TO^l 

AIIMd Mil-. Tnlg. lo-WSl t 2 *J5 

AmpvJ Ka|ih>Riri»a tl.30 

Arapol Pttruleum 70.81 

Amuc. Mmerali* tl.21 

Absoc. Pulp Piper FI tl.18 

Asboc. t'-on . Imiiiairie* tl.65 

Aiu*. KouadmlbJn luveat... t0.94 

ANi tl.50 

Aodimox t0.40 

A ust. Uil A i.a-r T0.44 

Blue Metal ln>l 11.12 

Bougnl ii v II lu Copper 7 LM 

Btufen Hill Pn'imetety ... 16.74 

BH a. -utli tl.06 

Carlton Uniie-I Brewery... 11.86 

C. J. Ci -lea il.95 

L'BIl (Sli 12.92 

Cotta. Gold! 1 eld- Aunt 12.75 

Container i$t> 12.40 

CoariDC UiuilDi'.' I 12.46 

(joetain An*Jmlia 11.45 

Duak>p Hutil<cr iSb 11.42 


Elder-bmltb t2.u5 

EJL Industries 12.15 

Gen. Pr«f«nr Tinar. tl.58 

Hrimer-ley 12.25 

Hooker 10.77 

10 1 Australia 12.24 

Inter-Cupper 10.15 

Jenjiiaga laduntnes i 11.30 

Jauee (Davidt 11.32 

Lennard Uil t025 

Metals Bxpiontnoa fO.25 

MI1L H.+1lnK?. t2.18 

liter bmponum 11.75 

News. — f2.35 

Nicholas luu-rrmlli-iiBl fO.85 

North Broken U'.tmjpi ibOcj 1 1~ 16 

Ookbmlrte fl.68 

UK oeaivh T0.13 

Otter FipJ,.,rati,'n„ I l0.is7 

Pkmeei CV-ui-me. -I tl.67 

KeukictA Col man 12.85 

H-C-tflch-H ! 10.78 

Bout lilan - 1 Mia mg I 10-22 

apatSt* tJ^dorarion... ' fO.S 4 

Ium£ 1 S 1 — i 11-83 

Waltons ; t0.b7 

Wuaiem Muring ioOceat -,11 fl.43 

Wool norths— I (1.67 





+ 0 .D 1 



t- 0.01 






Mu 19 




. ■ ut 




Beoie *i 

All kqueUL-eiil't* -e 

An Idoaiil 

C.l.l Ak-Ntei 

tr. Fotnil, 

Den. O.-rkicuiau 

1 metal 

Mlcbelin "B*' 


Fed* I ary 

Pernod- Kim id - 


Uadiu Tecliniuue. 


Khooe Foulenu ... 

731 -6 

392.3^ -tS.2i21.l6j 6.4 

294 (-8 ; 16J1 
440 . 2 . — 0.8 aeja 

rbonieoo Hrandi. 

. 472.i:-2.9 153S 


. 67b 9 

I 48 


. 490 |-17 

1 403 


. 1.504 1—33 

1 75 


347 ■— 4 

1 31.6 


1.122 [-18 



315 1-0.5 

i 12 1 3.B 

399 -6 

/11.2s; 2JB 

123.2 0— m.S 



79 1-3-6 

790 -16 




:14. 1011.5 

188.5 —0.8 

, 8.26; 4.5 

) 60.4 -1.6 



i 184 1-3 

16.7i! 9.1 

1 726 .—5 



1.732 S — 13 

36.75 2.1 

924 +7 

3B5 1 4.3 

'1,384 i + 17 



486 >+l 






156 —2.8 

16.96 12.8 

85 -1.1 









164 -2 


433 -5 

K7 J 


65 j 1—12 

27 ! 


88.8 -0.2 

9 .10.2 

145 .-1 

14.66 10.U 

1,495 j — 65 



274.6 -2.6 



730 , + 5.5 



186.8 -2.2 

16.16: 8.1 

23.8, — 0.25 

- 1 









Mav 19 



+ or 


_U * 

.Cds hr Gldk 







+ 8 





+ 2 











Fuji PnoO> 







+ 1 



Honda Motors — 





~. Itota 












+ 11 












— 1 



')vKHJmibik — 





ilstsiishila Imi— 


+ 1 



MitsublBta) Bans. n 




dluubiaBJ He ivy 


-2 ] 



,li|>ublsbl Curp-, 




ditvul A Co—.. 


~ 3 



537 • 



V ippirfv Deoso 





Mppoa dhlnpan.. 

661 , 

-5 1 

, l!i 


>‘i«afi Molon- 1 

. 798 | 




1,730 1 




«uy>. fcieetru-— . 









»«>■ — — : 


— 2u 



laJibo Marine.—. 

K38 ■ 

-1 ■■ 



*nkeda Clienncai.l 


-3 [ 



L.98J • 

1 0IJID J 

U!5 ' 




ipkto Marine | 




*r>kio B/edt Pi-wV 


-IO 1 



>'X(vo nsnVv 





■ •ikvoahtiwura... 1 


l u 






■■"■is — : 


+ 5 ! 



May W 

Price 1 + ur 
% : - 

■i 1 % 

Credit ana, tan 1 342 ! 

10 j 2.9 
B* | 3.4 
38 1 8.2 

7* i sis 
14 1 5.8 

586 ;— 3 


llav » 

Prue +or| Div. YM. 
Cru? iCvu^ % 

.DU. IB 12.12 
+U.14.J. 17 1 7. 73 
r J.fcjj.16'13.11 

Altai La I 0.99 

•Janopuu bnuci.,.,1 2.8u 

daniv I rsu | 1.22 

deign Mine*™ UH| 2.85 
U..jas A me- . UI’.. 

Fetnibar PP 

Pirelli , 

a*u>a Uni* UP....; 

L'nipPE 8.3d +i*.4frU.B0 2.38 

Vale Hi.. lh>+ PP] i.aO O.UklJ. 13 |B.b7 

a.15 • + u.u5 l *.3u 16.35 
4.88 .—0.1*1.4.10 1^.47 

1.70 ...IJ.16 [9.41 

d-.ol P—-J.05 1.23 o.l9 

4(ril y n * H 

VoJ. Cr-SiSm. Shares 44.4m. 
Source: Rio de Janeiro SE. 


Source WOdco Securities. Tokyo 


Mat 19 

Hay 19 





All A AtaKr^U)... 212 < + 2 I 
AllaLavnJ nlEritO 144 1—3 > 

Asli.V llvr.iOi 83.5 mi _| 

Atlss CopcrtfKrjc 1208, — 3 [ 

irillenM^ _i 77 L. I 

Uotora 2154'— 6 I 

Canlo 185 « —2 I 

tellultra — ...J 227 +2 I 

fciect'Uix -I* ihtO, ~139 b'— 1 I 
KricwoQ 'B'tKrtO; 134 |+ l I 

r'i 0 (tui ' 

limngus dree) • 

Hand it- ban lion..., 

MarnlaHi — [ 

Ho Uch Uoni-tr.J 

Saorlvik A.u .[ 

o.K.F.'h’ Kr- | 

Skanil Bn- Hilda., 
r-nd-tik ■!»' KrtOi 
Ynivii iKr. 


6 ; 

v4 ; 









248 8 
100 -5 


lOOnt -20 
62 '--l 

249 |+4 
148m 1 +1 

71m— 4 
52 '+1.5 
85 1—2 

IJ i 4.4 
b.d ' 4.5 
a ! 4.7 
8 j 4.2 
4 i 4.0 

A . ummlam. — 


Ciba GBi«y(P , - l '®l 
Du. Part. Gert- 

Do. Hog. ] 

Credit bub&e f 

Klee Crows It — — 

Kircher (Oetwjt®) 
UvffflUB ftCwtr. 


1.260 Hi 



90om + io 
6 18 2 1 








2.170 —10 
1.675 +5 

675 — 5 

77.750 + 2SUD!6Su | 0.7 
I Hu (Smolli:.«'7.750 I— 2t»0j 06 ' 0.7 

lurerlood 8 I4.85U | du i 2.5 

Jeltnnli (Kr. I00i J 1.410 ml +5 2111.5 

-NwUaiPr. IK)).. .|4.435 |— 15 i/ub.i' 2.6 
Uu. Uec ] 2.245 —10 insb.?; 3.8 




J./3 i.i 
4.3 I 6.4 



May 19 









J Hiu 

j In; 

Art ied 2.410 -55 - 

U M . Urx. Umh n _- 1.&00 ; + 20 ' 72 
IV- ten ■•«"..._„! 1.U&U .+20 llo 
C.B.K. Cement.— 1.420 —28 -luU 

Co.. Lem 420 —6 i — 

tBt>_ 2,215a— 5 

hie-irol«...._ 6,57u , — 2'J 

Fsbnque A at- ; 2,350 

ti.B. Imtu-Bm ! 2.02 J '— IQ ilsL) 

De»tien.^_ il.aum+4 j as 

fi"»'niien '2.240 llffl'/u 

Inter* inn -.-Z.i-aS 10 |142 

K ret tet i tun* . 6,75u j 36s 

lai Koyanr Beiut..'6.800 .— 5u Sus 

rtit Hi •>, ling. JZ.bOO j ? S.2fc| 

Petrenna „...-4. alb j— 4 17*} 4.1 

kh; Oen Banun-.. Z.900 f— 1O0 JU4 7.0 
but Ceu Ueutli|uc l 1.970 —15 -14u > 7.1 

>„ ,13.010 I— 6J ils | 79 

» V ».V —.,2.510 25 AZIO, B.4 

mminti Eievi 2.710 —85 Il70 

LLB- - ; 950 I + 2 ; _ 

In 754 I— 2Q so 

I'lwlle Moatagne- 1.570 !— 60 I 




а. G 



б. 9 




OerilkonlMP.£KJI 2,430 '-*-35 \ IS 
Pirem siPcP-WC 272 '-3 ia 

tern. toe (hr. StOi- 3.725m -r Z5 J 2e 

Dn. Parts Leri* 4n5ffl 2b 

+ liitwiwCtePlUj 2»5 --*.5 ' 12 

aurifrCu (FJJ 0 ) 348m— 7 j 14 

Turner (Fr. -■*)) 814a — 1 . id i 4.4 

■swim. Baal* (P- 106 38.3cn— 3 lu I 2.6 

Jk'im (He. F Jft0).i4.675 -+2S 4u i 2.1 

L-mon Bank [3.010m I 2U , 3.3 

Zurich loa. — .;10,7&flm ( 44 1 2.1 

1 L I i 






Mai- 19 

A Ml. 

PlL>t<VI ~— 


Ho. Fne — 

FlIMrlnr ... 

Mi-diotanoa —<d)u.4i — —| 

Pirem A Co. 1 

Pirelli ,i pa — ! 

*nia Viacom— ! 



105 j + 2 

, 46 1 [+ 11 , 

I. 599« 1 


II . 700 m l 

174.75. + 6. 751 
33,700' + 720 
146^61+ 3 1 

1.103 , + i 3 

990 +28 
672 —5 

Dn. \ 

Ijrr- , L 

lSu; 8.0 
Ibu- 9.4 








Mat 19 

Price + orVUiv". 
Kroner I — I % 

ueiS«i Bank — . 
dorreeaaOl — _... 


KO'ltH."..... — . 


Aorik H vdruh r.rOl 183.75—2.25. 12 
Storebrand j 95 | — 2.5 | 9 

93 1-1 I 9 

64 ! _i — 

108 1 ■ 11 

255m:-io . 8u 

106 l + UJ&'ll 








Alai is 
As land 

Banco Bilbao 

Banco Mlautico tl.OMt 

Banco CemraJ 

Banco Exiurtor 

Banco Criknl 

Banco Grenada d.000) 

Banco Hispauo 

Banco lod. CaL <1.0Mi 
B. ind. Meditcrranco .. 

Banco Popular 

Banco Santander >2o0* 
Banco Urqulio ll.OOfl* 

Banco Vizuaya 

Banco Zaragozano 


Bonus Andalacla 

Babcock Wilcox 




E. L Aragomsaa 

Espanola Zinc 

Explo. RJo Ttnio 

Fees* tl.UOOi 

Fenosa tlJHMt 

GaL Preciados 

Grupo Velazanez iW0> 


[be ra uero ” 


Papnleras Re un Id as 


Pctroleos ” 

Sarrto Papalera 




Torres H03icnch 

Tubaces . 

Union Elec. 

Per cent 






















59 JS 

- 4 
+ 2 

+ 3 

+ 6 

+ 6J50 


- 039 

+ 1 

+ 1 
+ 1 
+ J 


- us 

+ 2 

+ «.1S 


- us 


Hi'oa K«.iigB 

May 1* MayS 

G.ivy. Luan i+*c 1 _ 

Ammcarnauhl Bui. her””. 1 12.40 

Downier* j _ 

China lijjlil i. Power”!!!!.' 21.80 

City Hotel- 

cm mo p* .(ii Hu I’rtipeiHe^. 

Uarlnnir Tunnel 

B. Asia Nn final 1011 

Hoii|( Kona Alreratt 

llouj; K'jog Khslru: 


jluti^ Kong Ijtnii imoM.. 
Hunc KungShnnghai llauk 
Hung K«*ng Mwii^uh i H* *lit Whampna .... 

liner. Paulin m-urt I i«„ 

Jfl Mine Mather, m 


■CutiLHrr !!!!!! 

■>IBK- Uartiv “ 

-■>• *1 tbit. pi*. I'rt.p!;;-;; 

’uulii-ca i exilic 

3mr*.- pauiii- a !!!”! 

ii.-ii ik- Aiiutncv. !!. 

(uxLIk-VaTp - HiOtc Ki>Dk| 
I lot lock lUl.ll-ll 

"IhKhfUi Mam 1 me ™ 

H iiiM,r indumnai 

;i.62 ; 
7.85 I 
lb. 10 
13.90 | 






_ I 


2 LBO 
39 00 












7 JO 




xd Exriivltlend 

Barer. t SeU* r - 

wtlhhSSS 1 Bncte e5C,u<10 5 Drc| )iluin. 

4 denjnc uniesa o,benv (ae „ at ^ 

Behtian dividoub “7* atllir 


+ Kr 1 Q 0 dcnoni. uK whSjSL action., unlea oUk^ 

aiberufee utaietL c Yen So demmi ,i. n Nl + ncnuif. nni®* 

and or serin issuu. e Per share. 

(nci udinn 
nar meat, 

■Iter pending, rB W 
Ii .Mourned MKg* 

1 indicated 4l?.”«’unoSlS3 r ^HiV ■“* p - /Sd^FiSd SSm* 
r. Minority twitters oalr. 

tft K* 

JSS: h auS 

-•& i 

r+ur; blv.|YM. 

— Fra. 




XV •• 

jW ' 

at : 
*w ' 
XT ' 










Vr t - 

taj . 

&!s : 


1 -fi . 

N' 1 ! 

c-c- ; 

V •* r 

r- “ , 

^ !- 
ij; s * 




Unilac div V. ten. 'OiaJ 

•■ssrnss- ““-""S' 1 " "" IL 

» Traded. 

diTiddi « * scucr , 

■***• a interim aluca innwM 


Financial Times Monday May 22- T97S- 



KM'iCtantoZdK, 1 °' Vkswoiu Portfolio Life Ins. C. LtdV NPI Pensions Management Lid 

SBEr-- . » H ■ " ^^:v. Wo, S l "T f- 871 asr^«S3BST“ ££» 
5SgS, -“^t it •••• ■ = ^ c tr^-f 7 J - 3V® A'r 

k5m F bnd . 882 *«, " **resham Life Ass. Soc. Lid. .. 

irortlblq Fund .. L2S 8 1X7 ' ' — S TMlx-r uf Wain Kd . B'dmuKi. 0302 7B7I&5 *’** Zealand l US. CO. AI.K.) LtdV 
Mwnmd „ — 11S.J ■— ----- 

Abbey Unit TbI„ Mgrs. Lid. (a) 

72 80. Gale-house Hd.. A} Icahujy. 02965041 

Abbev Capitol B2S sell -031 *05 

Abbrv Income.. ....139.1 416|-D.4| 5 59 

AMjeylnv.Tfl. Vd..f»2 . 37.3-0.1 420 

Abbey lien. T. r i [452 46 1] -0i| 3.93 

Allied Hambro GronpV la) ij;i 
H ambro s Htf . Him oil. Bromnwod. Es+ex. 
01-588 2851 or Bieniwood i(C77p 211498 

■.SdkKtive D« a! J • - I 

ULKAntrify.... . 1M9 iSlo / 

bEE*' -as S«* •'•• 

aftt 4 a? • & ■ ■" 

aftWo-a 0 ;- 

nr.rg SCT + U0., UbJ ....I 

snay Fd Ser 4 1089 1M7 

■* **■» **■ Valuation nonnAlIv 

If. I. Cash Fund .... MS 0 _ 

£-J-?S oJ .? ,Fuwl 1050 2»i| — Kiwi Key in v Plan. 1375 

G.L 1 .III bund 1120 4 1J6 3 — Small CVs Fd . 1017 

CLhill l' 732% — Te-bnologv Fd 1049 

G 1- Ppty. Fund .._[9fco iol5} — Extra Inert'll. ioi_J 

Growth & See. Life Ass. Soc. Lid* fShbm ElT “ m? 
'Weir Bank P-ray-on- Thames. Berks. ottA-3428-l Gi It Edwed Fd 182.9 

— K^iLlind House, Southrnd SSl US n7n?«?y.s I Katenrrd Funds 

— . Flt-ublo Finance ,_| 0.053 I . .. I _ 

_ Lsndbiinfc-Sif'CiE I I | __ 

_ Tun. nwsd'-L-H 3 = ^jar^rsT" 0 SS« 

buy Life AcKurnnce Co. Lid. Gnardian Royal Rxchange Mananed Fund pn7.s zua-isi — 

OUtBwIlnMUMi - W- ». 01-1075082 Barhmw.-. E.C-3 01-2837107 SggSqT&T' •(§? JS* “ 

suits Fd. Aec„ — Q7S.0 1*7.« . ... I — Property Bund.. — .JIM.* 18iy .1 — Fixed InUFmd_L'.Ew3 llbil -ii! — 

* 14421 . - I — HmhM I II. A-,- I l-l.-j ■■ DepaMI Fund ' 110 iJ J _ 

_ Coil Deposit Fd. |> 

141.1 .. .. _ 

107 J . __ 

uoa — d i — 

106b -02 — 

117 J -17 — 
110.4 -1.9 - 

100 3 

1012 +0J — 

Allied |s| ._. 1651 

HriL lnd« Fund. .. 62 2 

Crth. St Inr H.8 

Heel. & Ind. Dev. 329 

Allied Capital 78.6 ■ 

Hambro Fund 3052 

76*1 "ntl I™ E*lrn Income pi S 

M 7oLn“f 3 12 S«MH Cos fd... pi 4 

430 lS til 1 '"pita! Fund .....56.2 

38 4 *' lii ini Ernt* AB«eu..p7J 

35 41 ...[ 1.37 yrtvaieFund ... ... p7 9 
St. Tdgs. 1-UL ArcumUr Fund HI 6 

o'-Ttu, 1 KS , ’;: F “ J jp;! 

H??f I f-2} American Kund— .126.0 

34 -02 420 cap.™. . jesvey •. .iujb uuvoi ... 4 

£“ i™ Neat denliBi; dale Mu: a. 

« 7 -0 j 3 42 Ko*ifclnU.Tn«71» JlllO U9.0,- .J 3 . 

50 6 -M 2 41 NenauL. Msyra 

Mo -06 la Australian Selection Fund NV 

622 -0.1 4.00 Market fippommiue*. c.o Irish Yvun K & 

20 0 —0 5 1 00 Outhwalte. 127. Kern RL. Sydney 

276 -0.4[ 1.70 I’SSl Shares — — | liS15J 1.. | — 

baay Life Auurance Co. Lid. Guardian Roy a] F^chauge 

toad lot. Arc 



lw. Arc 
Pan.rd Acc. 

aM — JiBLAcc. 

LMuJPfcFtlArr . 



®V life Assurance Lid* 

Property Btuuli. — 1174.4 18iy .1 - Fixed ln\. Fund _L'. 1§3 isfcit -■ 

Ul' Assunmee Limited f -SStStWifiZ " 

7 Old Park Lana. London. W1 

Fixed lnt. Dep 112a.7 

Equity 176.6 

JTopcrty — 1609 

Managed Cap 1396 

■ Managed Acc 1722 

Overaeaa 119 9 

Gill Edfird 122.9 

American Acr ido.9 

PMkJ’USepjCnp 177? 

PanJjjje^ Arc ... 147.8 

AJn ? Rl ^'- R * iKllte - Hei gate 40101. g™- pty . Cap. - 

itow Life Assurance 
.UkbrUlteRoad.W 12. 01 

MDc.Fd.Cb.Um. .1105 85* 

ufeFdi&i)u.J%.o iS^ . : 

jn.Hsd.Fd.Eq...|lU4 tS ll 
■UH|RLFId.-?A.. [114.6 1W3 "I 

■relays Life Assur. Co. Ltd. 

Pen. Prop- Acc 2592 Z72A . ... 

Pen. Man. tip 2D62 a7.1 

Pm. Man. Acc 2644 2764 

Fen. Gilt Hd*. CUp.. 1210 1274 

PmGU££ds..vcc.. 127.0 133 7 

Pen. B.S. Cap. 123.4 2245 

PmB.S. Acc U9.B 1465 

Pen. DA. F. Cap. 2012 

Fen.DA-F.Acc I02J. 

Bearts of Oak Benefit Society 

Phoenix Assurance Co. Ltd. 
4-5. Kins William SL. EC4P 4HR. ( 
Wealth Asa. 1112.6 118 6i . 

z EbT«e„-=;r L S,i 1J,l | ::-| “ 

“ EUT.PUXqJl fnS 75i| " "j - 

... I HamhroAcc. Fd [ 

-t-Dj] — laceme Pnada 

„ Hi Kb Meld Fd y 

Group High Income 0 

M0822SD0 A.fl Eq Inc 1 

-161 lairraalional FUadf 

-3.4 InUmalimial p 

' Sm of Amrnca |J 

-13 Pacific Fund f 

— Spcrlulln Funds 

.....J SmallrrCo.'s Fd . . 

2nd SmJr Co t Fd. .. 

. Kuwcwerj" Slls 

014B6BB7B MrL Min. It Cdiy _ 

■ Pvmeas Eaminga. 

- — [ I3xpi_ Smlr. Co 'a 9 

73 9|-01| 
73* -0 51 
. CL4j -Ojj 

m ;-d 

. ra) . Gartmore Fund Managers V laifgi Perpetual l 'nit Trust Mngmt* fai \JP ^ JL’ ^ JLFV&'* 

OlsaaMI E.Si MaryAte.ECTAOBP. 01^32331 48 Han 5: . Hcr.l»i on Tliames 04BI26fiCT - .■ 

-031 i7.iAmcrJcanT>l.-|» J U*| “241 2-3? P'PeluaUlpulh — (40 0 43D| .. ..| 351 

-oil SS r^oduv'sbie. «t3- ItaoiT Ie JMccadiUy UnU T. Mgrs. Ui» ia«bi Artmthuot Securities <CAi limited King & Shaxsan Mgrs. 

-051 j-K i7'FarEMi.Tnii4-3£4 . 35* *0.4 Ott wanlg' 'ie)l<&.S0u London Wall KT2 (38IWU P-<' BoxS£A.»s. Hcller.Jertry tiflM 72177 I Channii Cro- t. W Holier Jester .MKV ?74! 

• High Income Tfci-^ M-J MSI .. !J5 Exira Income m g 34 01 -02 420 Cap. T»ti Jersey. .11150 lHOd ...| f “* “ *“ ‘ 

|g| lucoineFuDd. 7J-2- -7^3 —05 6 24 < m »n . l-a '" 'Big gat tsC2 Vexl dealing dale Mai' J3. 

“ , Ins Acencler b« » .^l-O >4 336 rSSttLFtaid Ss! 1 4*7 j 34? Burt Und.Tn «71 . J1110 119.0,- .J j 

nSo S'| 5| Jr 1 * ini^EmakAawiitlfwi 50 6 -W 2 41 N*« sub M=> =S 

U1L-1ll.TU.1Acc i.-Pa 1 — PtlvaleFund |379 40 6 292 Indnlias jelmifln Frnd vr 

, Gibbs lAntonvl Unit Tst. Mgs. lid. Areumlir Fund Hi 6 Mo-06 328 Australian Election hcna .M 

-OS S«5 VrSFTN'L. DisBBcm Trehnolory r und. Sa 1 622-0.1 4.00 Markn npporniiuUK. e.o Irish Ioubk 1; 

-24-557 =3, Klnnifield SL . E'^i.^u. 01- KH 4 III Far Ea« Fd - (261 2B0-0 5 1 BO outhwalte. 12f7. Keni ^.Sydney 

-D 5 522 iajA.C.Hiqome'-.glJ 4tH 1 Jn American Kuud._ (26.0 276J-0.4I 1.70 VS51 Shares | 1«.£-1.S3 J.. | - 

-13 43I ta.iA.ul fmEssiOP;* 24^ HJlj OJO Practical Invest. Ca lid.y (ykd Bank of America Inleroaiiauci S 

-lj 5.66 Dealing 'Tues Ttwcu. 44. Bloonwhury Su wriA' , k.4 0U523B883 3S BouJevard RoyaJ. Luxecitourri •; 11. 

-231.4.49 Govett (John* Practical Mai' IT.. [1483 157 31 1 4 16 widlnt e« Ina'DO ISVSUfl M 1U*|-0«| | 

7T London WalL E.C2. 01-5885820 Accnm. Unlls ... |a»7 ZZ23f — { 4J6 Prices M May 18 .Next sub day May Z 

IS s’hidr. May is . — ?51 3 H Provincial life Inv. Co. Lt«LV But of Lndn. & S. .\merica Ud. 

-oil 6.64 *l Jimc a 31 ^ 222.Biahopigaie.Cra 012476KW 480B, <|ueen Vlciona Sl .CC 4 . o;k»: 

-Oil Z.4B Grievesoa Management Co. Ltd. jSjaaSfcRf, n^3 / Zi g| Ma ‘ Ma “2Fk££& «« it. 4 ' 

IS ^riSmMaywSwb' PmdL portfolio MUBW. .LbLftniAkei Basque Bmxellen Lounbert ' 

tAicum T'niui.' - »»■* Z35H.... 4 26 HoIhomBare, B.'l\ axil Ol^USSKS 2. Ru e r« la Rogcnce 11 JOXi Brossuls 

470 IVlgiuH.Vd. Mai- 18 . L77.2 US6j 7 84 Prudenlial ....1124 5 132fli4-2 5| 4.40 Rcnia Fund LF_.„|LB4a 1.9051 -3| 1 

-nl sit EndStMwiJd go’s 1M5] ™" 1.75 Qnilter Management Co. Jid-V Barclays Lnicern int. it'h. is.) Li 

-03 538 lAtcum-Llnit*..— 1027 JJ1§ J The Slk.FJC change. EiSN 1HP. 01-00041.. 1. Charing Cmss. Su Helier, Jr7> - . OKMT3 

-0.8 449 XSSKKE. 1 *'' WLO IoISISb ’72 Qu»drantUen.Fd..l04T lOBOrf.... 4 23 Cneraeaa liw*. ..[488 51 «| t0 41 1C 

-0J 554 ViSSSh MSi _ iT“ »2 73I Sw Vnindram Income Jl23 2 127 1] j 7.91 UnldoliarTYuU-. EifaiW lli3 ...I 4! 

.V- HEttESJZB? ... fia ::::J s5 Reliance Unit Mgra. Ltd* * ta SESffl«giSS%d^ij 

I nil. GWU Sees. T*'. 

FirU SlurliiiK 1 £= 1SW — J — 

First lntl ... (103^2 104 001 J — 

||g American FucdT P6.0 276[-0.4[ 1.70 VS51 Shares | St:si.SS J.. I — 

050 Practical Invest. Ca Li<Lf (ykd Bank of America luiernaiionii SUL Limited 

44.Blaoiwhun. Sq wriASkA 01^523 8883 » Bonlevard Roj-BJ. Luxemtourri II. C- 1 mi* 1 

Practical Mai' IT.. [1483 ~ 157 3] | 4 16 Wldlnrestli^me Jn^U" Hiai-047| 636 §SSroe?inc“ ,t ' K Ifi33 

Acctun. UiUls... law 7 ZZ23f ... } 4J6 Prices « May 18 hen suh da..- May 24. (jf j 

20. FencJiurch S'... EC3 
Eiinmost. Lux. K 1,036 

Guernsey Inc,. 633 62. 

Do ilrcum.. 763 831 

KB F»r Ea.iT Fd._ SUSiO.62 

KW.-iU Fund srsuii 

01247KBJ 4MS, Queen \ Iciona sl. EC 4. o:.K»s»a S30 M 

B82J-10) 3 IT Alexander Fund... (11^.7 0> - I \ — ng 1-S.Girtli Fd. SI SU 4Cn 

i.75(-0 7 53 Not an*rl value Mb> 1.. Signet Senn-Jda . SfS4.97 

1*3 3amnclciiMHrl7.[?076 

fAccim. 1'niUi. - HJ-! 
. to R'lgoHYd. May 18 . 177. 2 

am, lAccura. llnlUM M3-7 

cm Endear. May 16 176 5 

cm lAccuiiL Units’ 1627 

G mchsir. May- 1B.~ ■ J*-® 

c -±a I Accum. I'nils’ SS» 

*' yt LnJcBnls. May 17-t 

_ ■ - lAccnm L'aitsi ITZJf 

•KB Mill 


-3 338 
4 17 



. .. 051 

0 79 
-0W 1A1 

+030 8.99 

pacing acenu only. 

? ^ QunlriulC Lidi. Fd. . I1D4 7 108 Od .. .. J 4 21 Irwotne , H 

+ ” Uuadram Income ...|l23 2 127 1] j 7.91 cdldaliu.1VuU..- 

Renta Fund LF ILB48 1.9051 -3| 7 84 Lloyds Bk. fC.I.I l /T Mgrs. 

T-..n I.. .. -V, . ... P.O. Box 1K..SI Helier. Jersey. 0934 2m 

Barclays Lniceru Int. ith. Is.i Ltd. u oy daT*t. o-seas. 1555 sa4| J in 

1. Helier, Jr?v. OKV4T3T-U Next dealing date June IS. 

Anderson Unit Trust Managers Lid. ,' X f r Ml , ‘ " J tZ = , ' ^ Z ZSr'J' TT-. *Sn^ w “ d «Wd“« ««« ™ m m uo * itwB 

•SI=2S?*-’3/i ,AA fH S^ft"SiPioN. r™ mSTr aytq..TiM«Bii*.ii.o.a M iuf_ ISSi^.™-.|™. 

Prop. Equity & Life Abs. Co* isb F eo church SlEC 3 H baa 8229231 „ ua fr an Ray ?i j r,' M 

11B, Crawford Street. W1H 2AS. 01-4880857 Andrraan U.T. [47.7 5!3| | 450 ftogbriumfOW N 

R. Silk Prop. Bd._ | 178B I J — lagiCuanttiU TU-I*-? 

Do. E^uLfy ad. 72.8 J .._..] — Ansbacber Unit HgmL Co. Ltd. Henderson Admlnisra 

Flw Money- Bd 1 1483 J f — ■ j Noble SL EC3V 7JA 01-623 6ST8. Premier IT Admin- 5 R*yl 

property c™«h Assay, c. Ltd.* ~ mol I a-. «mS: 

41.* 1. Charing Cross. St Helier, Jry-. OXKT37-U Next dealing date June IS. 

4 23 ui«rseas Income ,_|4S • 51 4| e0 4| 1CB4 

7.91 cnidoiiarTfmt. — KLSliw luu .... I 4 20* Uovds International Mgmnt. S-A. 

lot Barclays Unicorn Int. <1.0. Maui Ltd. Uoj-dsinL income, [irxaai sa»[ — 1 629 

— leou House, Croydon, CR9II-U 
Property Fund . . J tt* t 
" • Property Fundi Ai 
. AgneuItiinJ Fund 

norn,™ ^ , ssssraofc ®L9| -LSI 4 40 gg SSftfSlW S3 ^ J S 

insbacber Unit MgmL Co. Ltd. Henderson. AdmUusraHve 1a) 10 Ig) z wi . .. _ . ,7. 

Noble SUEC3V7JA 01-6230375. Premier IT Admia-5RayleiBh Koad. Hulton, Semen t Lid. 

ic. Monthly Fund. [1620 17i0[ _....] 8.60 Breniu-ood. Essex. 0277-217 238 P0^419.»4i) 1 lsenned l -St.Manrheaer 

-rbulhnot Securities Ltd. (atfd • Cap! o^nb inc J«4 482)-0 4[ 332 !5 KiZ-lS S ■ ?2S2f - I i 

-. . _ Aanc. FundiAl. . 

Beam of Oak Benefit Society Wat- Fund. 

01-740 Bill L«U T “^ k plB ^ ? c lH ^ 01 -X 1 MO 

HsunofCnl 1363 384 -.4 — IniMtment FdiAl 

- HiU Samuel Life A gear. Ltd* SSSSHSJirs 

Hiil Sentuel Life Auar. Ltd* 

gHoodord Rd. E.7. 
adarbanda* 11233 

■MW-.. 983 1B3* _ 

anPenoAecum... 46 7 jm .... — 

ulrfaal 12.7 97 i) _ . pet 

■OWPWu.Acc... W6 1M* - Pk 

d. Initial 1972 ltt* — Pm 

•vTurronl unit value May 17. Pei 

•eehlve Life Assur. Co. Ud.9 - 
I. Lombard SH..EC3. 01^231288 . 

Ik. Horse May 2— -I 12835 1 | — J£jj 

C an a da Life Assurance Co. 

0 High SL, Potters Bar, Bella P.Bar 51128 

.SSa^SSS:.! ffi | :::::!= | 

huuwn Assnrance Ltd.y 

, Olympic Wy. . W embloT HASONB 01-3028878 „ 

-is-" = : ra = ^ 

■' — ’ OPropcrtV Units.. 

Ltd. - Property A 


01-33*5544 Managed Serleo A 
129 7] .....J — ISacueed Series C 

IH.7 4«3 _ Money Unto 

1155 -0.2 — Money Seri ea A 

MBS — Fixed InLSer A 

IMS +03 — Pm. Managed Cap. 

10531 — Pnx. Maouaed Acc. 

— Fna.C1md.C8p.— - 

= = Jassfes-BF- ass -I - 

— . Pena Equity Acc 

— PusPItilntLCap 

— PmLFxdJntArc. 

May 17. Pena. Prop. Cap. .. _ 

_ IUM . Pena. Prop. Acc [98.0 

*010231288 1m ^ eriai ^ Asa. Co. of Canada 

Equity FundiAl 

Money Fund 

Money Fundi Ai 
Actuarial Fluid— 
Gill-edged Fund 
Cilt-Edsxd ra. iai 
4 Re lire Annular 
Olnuwrd. Aunty 

Prom Growlb PeuaMns & Annobles 
All W-Lber *<- Utan273 1S3JJ .. 

All briber Ac. Ua. 
OA1I Weather Cap.. 

«nv. Fd. Du 

Frirnon Fd. Uts. 

Cone. pens. Pd. 1 

Man. Pens. Cap. Ul 

Prop. Pens. Fd! 

Prop Peca.Cap Ilia. 
RdKg. Soc. Pen. Ut 
Bldg. Soc. Cap. lit— 

01-880M06 Arbnlhnot Securities Ltd. (atfc! 

— 3T, Queea SL London EC4R ihy 01-23 

— ... — Extra rn come Fd. .11055 11 4 lad 

Hisb Inc. Fund nl 446 

- — ttMcmUn-Asi . . S65 M.t 

— ,^54 WdfwI.UU 1 555 M 0 ..._. 

a»- B PrelereBceFiind. . 25 4 27 4 

lAccun Uniui. 37 8 40.7 

-0J — Capital Fund . _ . M5 29 0 

n, Commodl ly Fund. _ 563 hLOn 

JM — lAccum. Uniui 81* 87.9= 

fS, “ iWKWdrwiU.i 49 6 535a 

— FlnJbPropFd 172 187 

r ■•„-,■ — Giants Fund CO 4 43 7 -03 

2 J — lArmm. Units' 46 7 5S5 -03 

I - 0 - 1 “ Growth Fund 34.1 361 

“ lAccum-Uniui 483 43.4 

~ Smaller Co *Fd _. XT2 29.4a 

i LuL Eastern A lull. Fd. . 243 265..-.. 

._... — i0H WdnrLL'la.'..-. 193 20.8 

— Foreign Fd. 82.9 W.l 

— N. Amer. & InL Fd.UA 33 6a 

mdeuKVRlBY 0I.9MB« SSSSSPa^Strt 

S**h Famh 

+ xa .. — High Income Faada 

S! 2iS High income g 

m S ; 2Jg Carol Eiira Inc. .—pi 

27 4 . ~ 12 14 Sector Funds 

40 7 1214 Financial* ITU — JZ 

2« o — iw*n»i n*a pa 

LOn L“ 552 laitroaU— 1 

7.9= 552 Cabal.. : W 

35a 5 52 Imeroanonal JX 

18.7 3 06 World Wide May lflfTS 

"2^ ?-S Fundi 

50.5 -03 283 Australian W 

36 f 293 European (37 

43.4 . — 2 93 Far But .HI 

If* 4 44 Nonb American ..-I* 

265 148 AcGrss May IS [U 

20.8 .. — 148 lhb«lAn8r,Sm.Capl 

TUdgefield Ini t.T.|49 0 106 Of I 2 

332 Hidgefleld Income. |%.0 ' 10381 ] 8 

b37 Rothschild Asset Management (g) 

0« 5 65 1 TtK»rauSt..Il>oug]as l L«].M. iK.-i-t89« M c 

0j| 565 UmcocnAust. Ext. [50.4 54.21 .... 170 M * C Group 

Do. Allot. Mm. 30.4 327a . 1B0 Three tfuays. Toner Kill EC3R B8q. 01-08 4388 

Do. Grtr. Pacific- .. bLO 656 .. — Atlantic May Id si. >2 12 29H ... I — 

lester Do. tali. Income — 393 <£.3 . 820 AlsL Ex. Slav IT. , Sl'<702 £281 1 — 

Da. Let Man Tel — 0.0 517+0.9 A50 (Rild Ex. May IT — It' SB 26 42*d [ — 

243 Do. Manx Mmual . .[25 fa 27 6].... 1.40 UUnd 1211 128.9d| +1 M 93 4S 

•1 188 BisbopGgaite Commodity Ser. Lid. lAcciim Uniix.- ..[1713 1S2J\ +13| 93.4* 

11 <gl f.o. Box 4S- iioueias. i o.v. 0d24-2a8ii Samuel Montagu Lds. AgLs. 

63 bid -0.11 

MB) +0* 


80 5[ +L51 

— 1 14. ul-i Brood S|..E«'.2. 

BD7 n-BO.GatehnuReltd .Aylesbury. (CS65S41 ARMAC ‘May 2 IMJSZ7J3 SBU ... I _ 1M uld Brood Si =r- 

S3x NC. Equity Fond . 164 9 175«-2.2J 297 CAMHHO"Mm 2 _ fcl Wg 1.0MJ .. — apoIIoFJ. Vjyia .->403 

451 i:£l^Sc R Fui»d!:M7l ISMn -i.7 662 ' OnonoEy issued at -5IO a«l “£1 0ft irFStjEi'a^ " 

!S g£SSff.S;-!Si 3U:!i if? r-“-. 

N.C. SmlJr C-oj'S Fd|l525 1623) — LJf 4J6 P-O. Bo* BOB, Grond Cayman. >.ajnuin fa. it*Jr^- i Apr. jo. lll-o 

Rothschild & Lowndes Mgmt. la) cpo^^sw' Hone iGSf* 1 1 ' “ Murray. Johnstone i 

SLSwHhiiuL3nc.Ldn.KC4. 01-6284356 MpponFd. Stay 17. J»Sli42 l*q | 0.77 t«3. Hope SL.GIa-gi*-*..T. 

NenrCLEtempl. .1022.0 129.0J I 361 Ex-Slock Split ;»°P*St W.. 1 SUJj 

Price on May 15. Xen dealing June is Britannia Tst. MngmL tCli Ltd. Murrai Fund.. - I SIS 

Originally issued at *5lo . 

117 Jersey May 3 . k«93 
1 17 JrsyU s Apr. 28 . 101.95 

i Areum. Units'. 46 7 5B 5 -03 283 Australian &2 35 41 -OJJ 1.91 wrinn uil'l' 

Growth Fund 34.1 361 293 European P7-6 40.W +02 526 pr1e * Dn M * y K 

lAccum-UaJui . «2 43.4 2 93 Far East. .168.6 7331 +0 4 3 69 Rowan Unit Tr 

Smaller Co sFd _. 272 29.4a 444 Jioub American ._J5»3 43 S -0 5 131 77^. . „ - 

Eastern* Inti. Fd. . 243 265 ..... L48 AcGrssMavlP M4.8 130 Ovi +5 4 194 C| U - Gale Hae.. Fins 

-6%Hr*wl.Lta.i.... 193 20.8 148 CabotAmerJUntCo. (513 54 -05 0.50 American May 1|_. 

Foreign Fd. 82.9 91.1 1 a) UIM c . To( * , SecnniiesMaylfl- 

N. Amer. & InL Fd-Juil 33 M LOO “ill Samuel Unit 1*1. Mgrs.T fa) High Yield May ia. 

45BeeehSuECa*21A 01-6S8B01I lAccum. Uniui 

Archway Unit Tst. Mgs. Lid* (aHCJ (bi British Tnot — ^[M6 5 156 -17| 5 *5 M erLnM y l. 

317, High Hofboro. WC1V7NL 01^318233. JH»3SSa=— » .«?-0J| 3JB ■ Aceum. Uniia,„... 

01 3886+04 

SW f 354 

ll9 .... I L16 

lla j 2QS 

..... 0.77 

3.61 Rothschild & Lowndes Mgmt. (a) 

4 - 57 Sl S nllhiiuLanc, Ldn.K.C4. 01-62841 

3 64 Rowan Unit Trust Mngt. I Ad* a I 
inj City Gale Hie.. Fi nib up Sq n EC2 01-806 1086 

Ex Stock Split 

Britannia Tst. MngmL <CIi Ltd. HeUer. Jersey 05MTUK 

Sterling Dn+vnloalnd Fda. 

Murray. Johnstone l lav. Adviserl 

163. Hope SL. Gla-gu-x. 'T. 041-2215321 

•Hope St Fd. 1 Si:s3287 J J _ 

'Murray Fund.. - I SI S1Q.9B ( .1 — 

'MAV Msy 15. 

0 92 GrowUilnveat f 

_ 317. High Holborn, WC1V7NL 01-8318233. ■ 

- Archway Fund __J81B M2| .... I 5 75 ;Kcra£^M 

•— Pnces ai Slay )RS«t sub. day May 25. tbinSu^iIiTS. 

TSegit S.A. 

4.00 10a Boulevard Roj'ai. Luxembourg 

Z5 Intnl. Fd. [735 795 -0 5] LOO NAV Slav 12—— I SUS1B06 I I — 

U Ja*a*yamrgyT«.. 14L6 1531 -2 L50 1 1 1 

18I 456 Royal Tst. Cam Fd. Mgrs. I-td. 

* „ T ”'" * ~ I ~ Barclays Unicorn Ltd. (aMgJ¥(c) 

ImpenaJ Life AES. Ce. of Canada BIde- Cap-UL_[ • U9* I 1 Unicom Ha 252 Romford Rd-E7. 01-5345544 

Imperial House. GuUd/onL 71256 Provincial Life Am nronee Co. lid. ' Unicorn America- [34.S 37 M -031 107 

Growth Fd. May 18.1725 7f* +0-3 - rrov inciai LMC AMlirmCC IM. UA. Eg 753 +o3 168 

Pens. Fd. May 19 If* 3 • rtll+La — - 222. Blahopagate, EC2. 01-2178333 Do. AusL Ioc_ H54 59* +4Jj| L6S 

Unit Linked Portfolio ftw.Mana#BdFd..[UL8 U7.H j — Do. Capital — Kfl 7L« -Lll CJ9 

Mseagcd Fond — [94.1 99*1 — lJ — Prov Cash Fd. |i04J- 109* ... .( - Do. Exempt Tst \mi I1*S3 -Lll 689 

Bena. F.Bar sua Mncaged Fond [941 99* 

13 1 | - KutodLnL Fd. Mj4 U»* 

i-1 1 1 — Secure Cep. Fd N&6 100 M -ML 

.. „ Equity Fund fcS.7 1007] — 

frisk Life Assurance Ce. Ltd. 

1L Flnsbiuy Square, n* 

Blue Chip May IS [725 

Manacea Fund — -{219.9 
. Prop. Mod. May 2 .-075.6 

Prop Mod. GUl. P90J 

King & Shaxson Ltd. 

Band Fd. Exempt -1166.38 

+ftj — 
ii . 

+L4j 4.4 

Gilt Fund 20 [U4J 128j[ -U 

Prudential Pensions Lbnltedf 

Holbmm Han, T5C1N 2NR. 01- 

| I — DO. Capital — 

... j — Do. Exempt TSt 

[ -L2( — Do. Extra Income . 

“■ lb) Financial Trust. 

Ibi Income TrusL^ 

1 1> 1 Security Trust 
5544 ,b 
107 Intel* (aHg) 

J “ IS. Christopher Street. E.CJL 

7.63 UnKaLSTBL Sig. — 1£239 231+0. 

3.71 High InLSdi.TxL*. [LOO — | ... 

3 71 UA Della? DwhImW Fd*. 

I’nivaL STat. ttlf 5J3 5401+* 

InL High IolTsL- -PCS lBe - [ . 

at May 15. Neat dealing stay 

01 -629 8252 1 Value May IS. Next Deallnc May =L 'Initial 

otter done* May 31, ISfm 

97 3 469 54. Jermjm Sired. S W.l' 01-6298252 vldno Mav *19. Nen Deallnr May “ "'Initial P^®* nix internnlifl 

84m -0.4l 7 64 Capital Fd..., Ml 72.91 .1 353 otter clown Hay 31. 1373 P0 B m 77. Sl Peter P< 

III :S| 759 ^rSSErBnntoi de. 7 fli ȣ *L S Brown Shipley TsL Co. Jersey t Ltd. imcr-DoiiarfMnd.CJS 

Save & Prosper Group Property Growth 0 

01-247720 4. Groat Sl Helena. London EC3P 3EP Steri^lng Bond Fd. .. [QflJH 1Q.(W . ,.| U.75 38 lrl+h Town. Gibraltar 

Negit Ltd. 

Bank of Bermuda Bldgs.. Hamilton. Brmda. 
NAVMay 12. (£435 — | ..._4 — 

Phoenix [Bienuiional 

P0 Bar 77. Sl Peter Port, Guernsey. 
loter-Dollar Fund. CJ5 . 254} .. ..[ — 

0L82882SS EquiL Pd. May 17.... 
+L4I 440 FxdL IoLMay 17>-. 
iul 4*0 Prop. F. May 17 — 

Ind Prope rty 
nd Managed 

■d cut-7;. 

mdEq. Pen*.’ Acc. 

Hgd Ml 
GOt PrnuiAee 
6 F. 8J.F- 

* ESJ.F.2 [275 29.3|+55l — 

Current value May ib. Caxh Initial 

. ...... _ Do.Atrum. 

*piuu Life AmsnranceV Equity initial 

>nuteti Houae. Chapel AshWTon 090C2E5U 
ley Invoat. Fd.. . .1 10872 I .... I - 

Paoemalmrlnv.Fil I 104J4 j 

rhfivterhmue Magnn Gp.V Si^SSafniUai 

18, CboauenSq. Uxbridge UB8INE 321 in Do.Accum ... . 

JirttmoMrorgy E3 B4I - Property Inl^al 

Jhrthoo. Money. — WJ M* ... — Po Aecu m .> 40* .... — Usal * General 

Ttanhw. Equity „..p4.0 35 B — Exempt Cash Inis. . 

Magna Bid. Soc. - - [ 224.6 I .... — l\». Aocuhl • 

Magna Managed— | M9J [ .... — Exempt Zqty. IniL_ 

City of Westminster about. Co. Ltd. eto^^f^’IbJl 
fUngMead Hpu*c. 8 WfalBchorae Hoad. 2° •''■ccinn. 

Next dealing date Juno 7. 

Govt. See. Bd. [U950 125 j60( —.4 — 

langtiam Life Assurance Co. Ltd 
LaaghamHA Hotmbrook Dr, NW4. 01-2035211 
langham A’ Plan— |&(J 67* — 

203* 771 — Reliance Mutual 
Tunbridge Well* EenL 

01-4239433 ^ cL Prop Bda. 1 196,9 

307.72( ,| — RnlhenhifA a.e»+ u... 

-L2| — Do- Extra Income - 

Do. Financial 

rid) Do. 500 

n ....... DO General 

OX-405 0222 rxi. Growlb Acc 

J — Do. Income Ta 

—J — 'Do. Prf. A'nx T«._ 

I — price* at April 2 

DO. HeroreK 

Do. Trimtee Fn nd_ 
Do. Wldnride Trod 


I — Do. Acc UHL 

So 7 l 3 -Lll (« InieL lav. Fond |M2 95.IH -L0| 6.40 SB 73 Queen St- Edinburgh EH2 4NX 

m.7 114 wj -Lll 659 Key Fund Managers Ltd faMgl Dealings to: Cl-554 8889 or 031-228 7351 

P.O. Box 583. SL Heller. Jersey 05347 
Sterling Bond Fd. ..[00.04 10.08) . ..| 1 

Butterfield Management Co. Lid 

F.O. Box 186. Hamilton, Bermuda. 

063474M4 Properly Growth Overseas Ltd 

1175 28 Irl+b Towr, Gibraltar iGlbifllM 

Ltd V2> Dollar Fund- t SUSBS89 I I _ 

Sterling Fund- ] 024.05 | | — 

Man -0J 
652 -0.9 
77.7 -05 
33J -D3 
43 9 -0.7 
985 -0.6 

26. Milk SL. EC2V WE 
car Key Energy IiLFd— 
624 KeyEquiiy*Gen_ 
42? dKefExempl Fd. -. 
612 Key Income Fund— 
4% Key FI ted InL Fd.. 

3, Key Small Co'aFd. 

Rothschild Asset Management Baring Brothers &. Co. LtdV faxx) 

SLSwitbmiLtuM.L4indoa.BC4. 01-6384356 88, Leadenhall SL, E.C.3. 

hLC. Prop. Marjl 0145 3215* 1 — Stratton TW. [168.0 

Next Sub, Day June 30 Do. Accum.— bos. 4 

ISO tain) .... 4 a* KeyFKedlnLFd. 

Next aub day Mar 31. Key Small Co'aFd. 

24 mi| I15I sjo K3einwort Beuson Unit Manager* JJgh tmmTrm*** 

19 53*-B4| 156 20. Fen church St, EC 3. 01-8238COO High Return 1659 

L5 65j3 —1 0) 4 84 K-B. Unit Fd. Ipc. 9 922J .._..| 4.97 InSme77_777I. fcl 

J 741-L3 4 34 4K-B. UnltFd Ac u05 9 115.M 4.97 ^7777.77 

^ KB.Fd.Inr Tata— ^5 57^ | 458 

Sd Co. Ltdf faux) L & C Unit Trust Management Lid? 

A 01-6882830 The Stock Echange, EC2N 1 HP. 01-SW 2800 Europe [S4.S 

8.0 175* „..[ 4.15 LAClne-Fd. —0361 140«+25[ 7.98 Jfpmm — 

■.4 ..2l7j _...J 4.15 LfcCIntifeGeniy.pG 99.3+2* 254 LI-S7 [77J 

01-6087070. Save & Prosper Securities LtdV 
61.91 -L0 351 Inienntlonal JFhadi 

iS] : LB £5 ffljebr = .BW 

85B -0.7 8B8 Univ. Growth |665 • 7LM -l.o| 

9I7 In 7 S Inereaaing Income Fund 

High-Yield [535 . 57 5f -DJK 

High Income Funds 

014 ? 3 55? High Return 165.9 70* -O.M 

2-2 h,eme P®- 1 *3 -0-3 

nl 12 UJL Fbada 

| Buttroaa Equity — 
Buttress Income _ 

738 Richmond Life Ass. Ltd. 

Prices at May 8. Next sub. day June 12. 48. Athol Strert, Douglus, LOK 0624 23014 

39D -O.a 2.99 r+Dital International SA it (The Silver Tni*L Q09 4 112*+L6I — 

265rf -Oja 395 "v"" **»■*» uaiiviM aA Richmond Bond 07 v pa 192J -n.7 10 72 

7LD* -J.dI 2X4 37 rue Notre-Dame. Luxembourg. Iw Platinum Bd 130X 1376+56 — 

Capital InL Fund... | SL'516.93 1 .._ 4 — Do. Gold Bd 103 6 1093+15 — 

- 57 5| -D5[ 7.89 Charterhouse Japhet ' Do. Em. 87/ 02 Bd — [1^- 9 3735|-L^lLttt 

T« i.WemoMwiUro.ECA M “«■*? Rothschild Asset Management (CXI 


10I S09 5.70 

Lanjh^AP^WJ BXJ-..J- Reyal Insurance Group *«t rob. day M*y 24. Lawson Secs. Ltd WaHo rraa 

79x1 New Hall Place, UverpooL 0612274422 Blshepsgate Progressive Mgag. CclV 15512 “i -228 ?^ 1 5P«*F-,. [m3 

Lege! A General (Unit Assur.) Ltd f±„h» 4 i4ai[ -.j - WsmMCR u-an sao SSSSfflSfc K “I ‘3 

Kkqpro^^we. Save St Prosper Croup* ftSiiJhlSSS-pi ill "I •’SS^.ufclSi ui I! JS SSS5S25S fc "~§A 

^ €.GLSLHelenx.UMl«L.BC3PaKP D1-S54B8W m 3 t^ihaadWteiaaL 577 M.9 1TO Sdeei Income pJ.4 

*153- euaa.— -MH ~ EftR-B IH - S3 

Wlap iSPI Man Fd[75A 79* — New Hall Plaee, UverpooL 0512274422 DlBnopsgnie rxogres 

Legrl A General (Unit Assur.) Ltd R*)»i SW«M Fd. -032.4 14ttl[ — J — b, Buhppagaie. eca 

KLav ^ 00 3 nT!^^ix Save Sc Prosper Group? Ac^^^ r o°::[po.l 

SKZtldal J..M55 - *- GtSLHelen'a. UufaL. BC3F 3KP 01-554 8890 iSfc 

I * rullu , — 

'(Accum. Unluj— . 

L3o ++r;, h c,nii Vurniil 

rharterfMUse Magna Gp.9 
18, Cheq u er * Sq . Uxbridge UBH I ME 

|Bfe®ffi.:zg.J M .- 

Sathae. Managed. BU 40Xi 
*tthae. Equity — B4.S 35.H .. 
Magna BkLSoc. --[ 124.6 [ .. 

Magna Managed —I 149X | . 

Croydon CROTJ A. 
Weat Prop. Fund, _ 

Itqalty Fund Ml 611 -0.5 — 

Farnilanil Fund — [763 73.7 — 

Mow Fund.— — ..1205 U6X .. .. — 

GUl Fund MS 661 -02 — 

PULA Fund ..... ...pSX 176.4 — ■ 

rwnx.lingri.Cap — Rl33 UU — 

nma.ibigd.Arc — 0175 .'133.4 — 

nana. Money Cap . [46.4 48.1 — 

'•nc. Money Acc. . .[4IX M3 . . — 

nma. Equity Cap.. 1553 94*3 -36 — 

•wn* Equity Acc. .. 1552 SE.lI -O.m — 

Fund currently closed to new irn’eytmctu. 
°wrtonn Units I 197.7 | [ - 

’hy of Westminster Amur. Soc. Ltd 

'alophone ot-OM 0804 

U 1404 9864. Exempt MnStLlntt. 
,i _ Do. Arena — 

1 Kuri-ipl Prop. Put . 

Hfl'ij Do. Accum...- 

125.7 -U - 

1275 -LB — 

128.1 -a* — 

122.3 -0.4 - 
MSJt -05 — 
1036 -0J — 
122J -4U - 

124.7 -IU — 

i ' = 

BaL Inv. Fd. [126.0 

Property Fd.* 1494 

Gilt Fd 118.0 

Dopoait Fdf._ 1225 

— Legal & General Prop. Fd Mgn. Ltd Mngd. FixSiyK 

_«? ~ 11. Qooen Victoria SL.EC4N4FTF OUMMnS 

_ LftGPtp.fd.May2_|W0.a 3UB1.7I 1 - 

- L, • -• 

— Lrfe Assur. Co. of Pennsylvania „ pretmtriur ie 

— 88-42 New DoadSL,W170RQ. 0M6383« 

EquityFeas.Fd— n£L0 19151 - 

PropJv™ ?=U* mo.l 2ZJL8} . 

Gilt Pane. Fd. (VL6 96* - 

DepotJPeexJFdA (97.7 182* . 

Price* on May 10. - 
tWeekly deallngx. 

Schroder Life' Group* 

Bmerpriae Houae. Porumoutti. 

Equity Ho 18— 

Equity 7 May 18 
Equity 3 May 18. 

Fixed InL May ]i 
Fixed InL Mny Id. 

InLUTHay 1S._ 

KASGUtMay l& 

KiSSc- May Id. 


Bridge Fund Managers piaKc) 

King William Sr, EC4RBAH 01-8234951 

'(Accum. Units) — M-5 65.6 

ttGih and WarronL 97.7 40.9 

iAraerlcaaFd., »7 265 

£ Accum Dulls) 2S7 27 3 ._.. 

-High Yield .*73 52.0 

— (Arcum Units) ...Jfi75 7Z9| . ... 

Deal. JMon. •Hios. ttVed tThura. • 

m glwWIitflmMwi Fund* 

Select latemat. ___to0.B 264.7ml -3 21 

Select Income p3.4 565] -0.7[ 

Scotbits Securities LtdV 

"I to 61 ScothiK [39.8 4L9| -0 J 

' UU Scotyield 50.4 54 il -O.fl 

"J-Pri. Srotsharea — ^■■■- 156.9 6LlJ -0.6 

L20 Clive Investments (Jersey! Ltd 
0-H3 P.O. Box 32a SL Helier. Jeroey. 05343738L 

Clive Gilt Fd. 'OX l.|9B7 9B8I J 1L89 

489 diva Gilt Fd. (Jsy.i.|9B5 9X6] 11X0 

+;Jj Cornhlli Ins. (Goernseyi.Ltd 

P.O. Box 157. Sl Peter Pott, Guernsey 

232 InroL Man. Fd. [1675 1825) [ — ' 

' 7.43 Delta Group 

P.O. Box lout. Nassau. Bahamas. 

3 55 Doha Inv. Mey I8_ JS1.79 LS3!+(U2J — . 

c ta u.L jncJ- a. juiy i ix3u.ll 160.4ml J 7JD 

ZL O.CJntLFd.t- SLM L3u 154 

2*8 O C5mCoFdApr28. 134JS 142* 354 

O.C. Comncitfiiy* — 13L6 140* 4.61 

O.C. Dlr.Comdty .r._ 52538 Z7.00afi — 

‘Price on May ULNexl dealing May 31 

t Price on May 8. Next dealing May 22. 

Royal Trust (Ci) Fd MgL Ltd. 

P.O. Box 1M. Re«a] TU. Hue., Jersey. 0S34 27441 

RT.InlT.Pd. ..RVSS20 95M J 3.00 

RT. JntT. (Jsv.l Fd. . |91 95mj .....| 3JX 

Prices at Maj- 15. Next dealing June 15. 

Save & Prosper International 

Dealing to: 

37 Broad Sl. Sl Helier, Jersey 0534-20981 

l.o Legal d General Tyndall Fund? 

— I $-5 18. Canynge Road, BriHoL 

Scol Ex. Gib *4— — 
Scol Ex. Yld.*t~— 

Trot l' nil* „.,..[n*6 1S45) . .1 — 31. C3ltton SL. BC2A 4M\ 

?— * u 7 “ '. . nS| ■ ■' - ■ 

.mmnclal L'uaD Giudd MevM. hMJ 

LACOPUaiW.. "ZmT* U«rt Hi ~ SKhSpiL 

Lloyds Bfc. Unit Tst Mngrt Ltd • Mn^cp-Kwm 

71. Lombard SI .ECU 01-ffi312® 1S - 

Ezempt--,. 196.8 uux] I uio Scottish Widows' Group 

Uayds Lite Aosunince i*o BotWK. Edinburgh ehjo H 

20. aifton SL. BC2A 4HX In v Fly^erie* L — 11865 M 

American &GetL»-|25.4 2t8l i.4l Legal d General Tyndall Fnndp — 

fflSTr«.tz=Si M r~ ZSSff^X*- • u* ■?« 

mwf mo M6.0 :::::: la iacc®^JL “J zzi Ii? 

Interatilnct 155 16 J« 3 68 Next an b. day May K 

Do.Acc.r__. 175^184 ...I 3.68 Leonine Administration Ltd. m South Sweei.D 

Dealing T*|* Prices May a. Duke St, London W1M8IP 014885*1 

Britannia Trust Maungement la) (g) ^ A^um . ^.9 05 ^ *■« 

3 London Wall Buildings, London Wall. Lloyds Bk. Unit TsL Mngrs. LtdV (a) SuSSjpD,?!!, 

London EC2M5QL 01-8380478'0478 Regislrai's DcpL, Goring-by-Sea, Inc. 10% Wdrwl 

Aaaets. [71.1 765[-0.9[ 55S Worthing. West Sussex 01-8231288 Intnl. Growth. 

[__* *53 37 (ari is! *«x x+mynge lumn, nriMui. urisocxvi Prices at Mag 10. Next sub. day May 24. ■ — 

loc.t——. 353 37xm — 3 26 n I k. A prils H6 8 • 6021 | 517 Ihi tmU * DKyfns Itotercontiae 

T " i9v o 346.0 53 cAccum. Untoi — p22 76 3 J 537 ScWeflinger Trust Mngrs. Ltd. (aHr) po n — , 

Llatr B5 IBS* ' 3 68 Next mb- day May 14. ancorporating Trident Truslxi W.uul.a "Su 

S3 _ 1b 3_ ::: 13 Letmme AdmiiiistraLloa Ltd. 140. South Smrn.Mng ___,OT06i 88441 NAV»tayi« »««» 

753 Deutscher Investment-Trust 37 Broad S H elier, Jersey 

Foatfach 2885 Blebergoaae 8- 1000(11 Frankfurt. l'A DdUnr-denomleatcd Ftroda 
*9 1 i-S Concentrn mvnw uniM+C.inl _ DlrFrdlnf MxylO. WS3 1051 

S.~mi£ n !M-"F^ifood.._®58 TlMi-OJUl - feTS. ‘ ^ 

,_ urt Dreyfos Intercontinental inv. Fd 

P.O. Box N3712, Nassau. ro.h»nm . . S-JpTO**? &.SUM MB 

mu,, N A V May 10 — — [SIS143; 1S2H | — JftMUiK+JeiientlcuoiJ tands 

w___„ *, tknriil.. T„, tree 3 *A Ounaa Capital^ C34.6 247 ( 

1M £msen & Dudley channel L-jandao. 1435 156/ 

i-73 P.O. Box 73, SL Heller. Jersey. 053420581 Coaunod. May 18„. 1214 1271 

RDiCT. H17B 125.4|. | 350 SL fbid. May is ni2 3 33 J 

%J* F. Sl C. KgmL Ltd Inv. Advisers ***“ ° n +wgefe u^Snii 
2fl 1-2. Laurence Pountney Hill, EC4B DBA. _ .. . . , 

jg 01-823 4880 Schlesimger Inlernatioual 

419 CeuLFd. May 10 — ] SUS536 I J — 41, La MotieSL.SL BeUer. Jena 

453 Fidelity Mgmt. St Res. (Bda.) Ltd f-AXL IM i 

tTaa P-O. Box 870. Hamilton. Bermuda. GQtFd H 

232 Fidelity Ant Aaa — I SUS2S55 I ...J — lnU. Fii. Jereey_..Z IDS I 

264 FWfehllW. hM -■ Intnl J’dJj^&g-- SM51 IL 

- 5 48 Fidelity Pac.Fd — SUS443S | — -Far East Fund M 1 

S3 Fidelity W rid Fd „f SCS1401 1-00*1 - -NcxTro*. day VUy 

Capital Ace___ 50.9 

Comm* Ind 556 

Commodi ly 75* 

Domestic 37 2 

Exempt 1852 

Extra Income 

Far East — - 

F i nan c ia l See* — 
Gold* General.. _ 

Growth — — 

lac. A Growth — _ 

IntT Growth— 



Nat. High Lac 

New issue _. 

North Americon.. _ 

54m —8* 4.09 First (BalurdJ- 
59 -0.9 443 Do.tArcunt.i_ 

813*4 -0B 526 second l Cap.) 

48.0rf -0.9 4.63 Do (AecuhU_ 
lUL8m-02 7.40 Third fin cornel- 

42.4) —02 931 Do. LAccum. I 

20.4-03 354 Fourth iExlnc.i_ 

894+O.JJ 322 
W5C5 -19 409 
787d-®.a 7.00 

447 Do (Acconu 

4 45 lnv.1M.UnHa. 

445 Market leaders 

325 "Nil Yield - . 

325 Pret* Gilt Trust 
621 Property Shares 
6 21 Special Sit. Tot- 
7.97 TJJC. Grth. Accum. 
7.97 UJC.Grfh.DlsL 

Z7.« -0.1 
30*4 -14 

+05 LSI 
-02 4.96 
+20 — 


-May IB. 

$Weekly Dealings. 

Schlesinger Inlemstional HngL Ltd 

4 1, La Mod* St. St Belief. Jersey. 093473588. 

SA24 [94 891 ..„J 825 

SA.02>_. S08S- -8.93* ..... 4*4 

GUtFd 7Z . 9 233 -02 U.90- 

InU. Fd, Jersey 106 111 -1 Ul 

Intnl -Fd-I-xmbrg.- 518*1 1127 -O ffi — 

'Far East Fund 194 99 ^_4 20 

•Next sub. day May 2k. 

78 7d -ffl.s 
• 36. SI +0J 

4« Life Unit. TO. Mngrs. Ltd. J. Henry Schroder Wagg & Co. LtdV fidelity BfgmL Hraenrch Uersey) LUL jjj, Grom 

7iS c.ijw.^.oi hUkm .vmmuui U. «/.. 01-2403434 Water lQO Hie., Don-SCTSL Heller, Jersey. ” ■ rienruu wnr ixroup 

'wmmclal Union Group 

- tLBelea'xl. Unferabafl.ElM. 01-2837500 
VarA&ArULU.y3D I B27 1+15X51 — 

Do. Annuity Uta i 17 B* [ 4 - 

Confederation Life Insurance Co. 
M.ChaaoerrUane. WC?A 1HE. 01-242U2B2 
OBqulty Fluid. ... „J150J U7.M .. . - 

WbmBedFVnd .. 1735 UL9 . . — 

Bsrxoiial Fen. Fd.- 795 721 . ... — 

Equity Pen. Fund. 334 .... — 

Hied Int Pen. Fd 1985 - 

MaoasedPNuFd... 178 7 — • 

Property IMn.Fd. 53®* — 

fftutecl ml In. Pol 357* - 

CmhlU lunnow Co. Ltd 

aa.ConibUl.EC3. oi4Bftasio 

. ri;s* Eqty Mr»- 13.. 1305 
01-2837500 Oft H>. mar IB— 13* 
i.Vny 1 o^sStSaMasris. WJ 

r!zl - 'TpLJ Dept. Kay lO-IBLl 

PO Box Wtt. Edinburgh EHI8BBU. 031*950000 SStaslSSl 
Inv^^rieal IM65 lgM +L4j _ 

SES&ftjH r WfSSStz 

7.00 72*0;GstelKiuseBd..A»lcsbuiT 02885M1 130.Cheapside.RC 
248 Equity Accum. J1567 165 C[ | J52 CapltalMajrlB 

IH MtfGGnmpf fyXcKil fiSSibvWZZ 

622 Three (Juays. Tower HU1.EC3R8BIJ. 01 C8 4588 (Accum. Units i 

Sm ilIicp Suk\ Exchange Dealfiics. General May 17 

— Solar life Assurance Limited 

London Indemnity & Gal. Ins. Co. Ltd toteEly Place London E.CJN6TT. nucaoj j BLBriush Ufe_...._ 

The British Life Office LldV (a) SnX™, gSSoi 

Reliance Hse.. Tunbridge Wells. KL08B2 22371 

J-BO American .B13 

~ni (Aevum Units i 523 

no £2 Australasian. __ 515 

~B-5 5£ (Accum. Uniui 525 

ni ■ 5S2 Commodity 742 

-0.4J 250 lAccum. Unit*) .. 79.9 
Compound Growth 104 7 
1*» Con verson Gro-i-lh S9* 

1R.3D.Tbe Forbuzy.BuaduiK 583511 Solar Managed 5 

MEri; S| d = Sggsg 

Fried roi«wL..._|su 36o( — 0 l] - Solar ^|l! 

The London & Manchester Ass. Gp.9 solar intis. 

The U+ia. Folkestone. Kent. 030357333 SMar Xtonage dP 

Cap Growth Fuad- 1 . 220.9 +LS — 

OExcmpt FIOxJM. 1312 +121 — Suit iJ* b 

OTiSfi ^ M - 

Ftoabhr Fund I mo '■o.9[ _ bourmB.p. 

^n^Hivts!!.. W20 - J +7.5j - }ropa«^nd£'"!:l 82.3' 1+0*1 - Sun Alliance Fuad MasgmL Ltd Browt 

iroJ 1 II MAG Group? Sun AJUance House. BOnbaiL 040884141 SK 1 

sra^a- -ifsj - a*»*=nwn =i = 

ISO. Regent SL. London W1H9FE. 01-4397081 Couv. Df penir “ 

C*C Unfid Fd .- 1 1220 15281 . . ( — Equity Bond"* 

Cap Growth Fund- 
OExcmpt FIOxJTd. 
^Exempt Prop. Fd 
dExpL lav. T5L Fd. 
FUmhieFazid _. - 

=H = 

. ^ife [49.4 . 

BL Balanced- Ub5 «9.7j t 558 

| BL Dividend". _|C.7 45.7| j 927 

-Prices May 17. Next dealing May 3*. 

r m Diridirod 123.4 

S5B (Accum. Uniui 2231 

Brown Shipley Sc Co. Ltdf 

Mhgrx: Founder* CL. ECS 

BS Units May 8. 

Do. (Accj May B — 
Oceanic Trurt* (a) 
Genera.. . 
Growth Accum. 
Growth Income 
High Income 



Menchznt Investors Assurance 
125, Hi A Street, Croydon. Oi-8 

CLCMngd Fd - |122* 13281 . I — 

Crewu Life AMurance Co. Ltd.? Femi^ST-as- 
Crown LUe Uro.. Wokins. GU21 1KW 0409=9033 GlhBt«d~- . 

S2fJlWe^;.Ki ajj^] i:« 

SSS^RdAer 1 " "W0 1W( “ 10 - Shield Kd Rd 

i r ssssaa 

fflu = 

£StK;(S5i.-:Bi gl ^3 = 

Inv Trt Fd InlL -fej 1B12 -UJ - — Sf 

Fixed Ini Fd.Arc.g42 491 -07 - SSSS tS ' P *”“‘ 

iSis'FdNu!* ifi - “ WPiS”” • S.7 

fisr:= -il 

tsmSTrlK' Si —0.4 ‘a fe"--: «] 

IriraoBttlnVA-JlSSO - --1 - S* 

Crutkder Insurance Co. Lid ihiL Equity--. JgJ 

viorula Hmue. Tower n..E<a 018088M1 ^ ““ 

Gth. Prop. Mays... 1*94 76Ja| J - VEL PetMUOUS Lid 

Eagle Star insurfflldtand Am. 

], Thread need le St. EC2. . . 0 ’ ! 2 ’ = Neka Arcura. . J15 4 I 

Eagle. Mid Volta. [510 52 9[-07| 5.95 Noiex Money Cap. - MB i 

Equity A Law Life Ass. Soc. Ll df Ndncihteta' g.4 ! 

Ammxham Road. High Wycombe MMM3T7 Ne}««MKCaP- g ’ • ] 

*.«. an. may i f 1 uus I 1 — Overseas 


Son Alliance Linked life Ins. Ltd Recovery 

Sun Alliance House. HorUbam 040384141 EmqpL April 10 
gH^|= Canada LUe 


19 But -02 

48* 1 



2LS -021 
265 —0.3 

212 -n3 
6L7n -05 
232<t -02 

60 am ....J 

■ 1 on European 47.7 . 

SSP qs* . lAccum Uni Lsi 433 

Mai Extra YIM 84.4 

jAccum. Uq<tsi 112.9 

Far Eastern. 52J* 1 

01-800 8520 lAccum. Unite' 570 

I. 4 BS Fuad of Inv. Tkl*.— SOS 

J 456 (Accum. Unilaj M0‘ 

— ■* General 1685 

- _ lAccum. Uni lei 2575 

ji High Income 1029 

_0 - 1 " ® (Accum Unitsi 1674 

■ — Japan Income 1442 

— 5S (Accum. Uni in M5.5 

I'di' ?S Magnum WJ 

Sq (Accum (.'nilsi H05 

^-3 5™ Midland 1653 

54.U —0 4 
55.71 -0.J 
54.U -1.2 
55 91 +2 3 

128.4 .... 

195.4 .... 

284.4 .... 
875 .... 

1080 .... 
'3L5B .... 
341 .... 
168.9 ... 
. 2<C5 . . 
(May 12-. [183.6 I892| . . 

For lax exempt funds only 

Series A Ontsl.i — £3.74 1+803 — 

L 651 Series BfPactfici-J £757 1 ...71 — 

“ 6 61 Series D ( 53759 J | — 

— First Vildng Commodity Trnais 
232 S.SL George’s St, Douglas, I.oJL 

2 ja 0SK 4632. Ldn. Agla. Dunbar 4s Co- LiiL. _ SManaced 
53. Pall Moil. London SW175JH. 0WU07857 

371 FSLVik.Cm.T«L_.g6J 3821 ... .J 2J0 , _ 

5.14 FaLVkJDbl op.TSt_[7M ud 220 J. Hear: 

. FA. 

Depo+ll Fund 

Managed Fund 

(Accum vHET™” 

fS Hecoverj 

aS (Accum. Uni La i 

Second Gen — 

.j u (Accnm. Units' 

- Canada LUe Unit TsL Mngrs. LtdV iw|to 

— 25 High Sl. Potters Bar. Herts. P.BarSlUS (Aonim. Unllsi (2ML7 713.71 +1 

si j = 

Mar w, -*-Mar IB. 

• [ “ Son Ufe of Canada a 7 -*-) Ltd 
“May IP. 2.%lCocfaparSt,5Wiy5BH 01-03 

Marte l/. Gath. 1 2092 1+3.71 

acc MapleU.Mangd.-I 1335 I I 

01-8808171 Haste UBWV7-..J 1285 [ f 

+821 — FwanLPn-Fd ] 2013 1+3.0] 

-o.H — Target life Assurance Co. Lid 

La-02^ - Can. Gen DIM B79 39 g -05 

$ — Do. Gta. Accum — W.O 48a -o.9 

*i-M — Do me. Dial (33 5 351x3 —05 

. ... Do. Joe. Accum— Jo.6 <55j -0.7 

|) I dil 

01-0305400 Capel (James) Mngt. LtdV 

Specialised Funds 

J" Tranee. [M6.9 155 

'33 [Accam. Units' 282.7 298. 

7J 3 niarlbondMavIS-.l U83H 
CbariTd. May 18 ps55 148.0; 

ce Deallncs. General May 17 . — 

126 'Accum. Unltei 

126 Europe May 18 

1.99 'Accum. Units) 

55 jf +JIJ 1.99 'PeniCharFdApfS 
79.7 - 0 6 4.05 S’SpecEx.May II.. 

85 9 -J.7 4 05 ’Recovery May 12- j . 

igj +0? 5 54 -Per tax exempt funds only Fleming Japan Fund SJL 

66 2 +oi su Scottish Equitable Fad Mgrs. LldV 37, roe Notre-Dam-. Luxembourg 

1282 +0.2 7.7 7 28 SL Andrew* Sq, Edinburgh 031-5580101 FTmg.Mayl8 — -I SUSA5.04 | | 

Income Units K02 5341 .1 5 00 Free World Fuad Ud ' 

514 lol 3« ACCUJn - L ' DrainTE^WedniSA. ' Butterfield Bldg.. Ham. Itat. Benmida. r 1- ^ ^ 4 ^ 

1M2 :8i l» Sebag Unit Tst. Managers LtdV (a) 1 * Uf S a * ti ° wil Ud * 

IS B SSi'J BraBr aw ■ !”Sg agnSsi BJ^msiap ^ «*(-■' - 

,2S ^ SS f eb ^* col "f‘ L -^ 3 ' 2 31 ^ 839 London Araus for Singer A Friedlander Ldn. Agents 

tof 564 SeCnjlt >' Selection Ltd. Anchor « Caanon SL.BC4. 01-2488848 

Io4;6 +0 7 ass 15-Ul Lincoln's Inn Fields, WCSL 01^318838-9 11 _ao3 ^ Del^fm<h EH 48 MJOj+tUBj S38 

173+0.5 UovlfflhTBAce-WJ »9} .. 3.TO SlIS-TSTSu m 3 +fl.4i 295 Tokyo TsL Apr. 28 .r^Sasion^l 177. 

ilH 1-2 Un vi Gth Tst Inc — [20.9 223J 1 3.70 LenyPacFU 1 SUS40B6 ..... 0.97 ^.rnnnrlinTrl 

feZ Stewart Unit Tst Manaaers »i4 (a) Bw*rPacStri* — mo o solH 120 btronghald Management Limited 

2145 +0J JJX B i * cr * * ML ’ G.T.AstEFd IjHKBffl B«b L7B PO Box 315 SL Helier Jersev 05SU-714M 

iZ l 2S 4S, Charlotte Sq.. Edinburgh. . 031.2383=71 G.T.Asla Sterlhw-Ks UM Z\. L48 ^a^ly -ivuJt!^ W.9S+oS| i 

I57K +0J3 6.86 tsiewart .American Fond G T. Bond Fund — I SUS1224 +41(0 5 IL '- omama * v+-«l+«ra - 

Standard Unite. — 166 9 71 4{ [ 137 c$'£2|H£j L 5inj* +flK ?'2 Stuinvest (Jersey) Ltd (x) 

SS££“Jl -J 11 Gartmere Invest. Lsd. Ldn. Agts. 

*Sfe*mrt BrtUih CraU FUd 2. SL Mary Axe. London, EC3. 01-SS33631 Copper Tract B21 27 110+0j3 — 

SI-3T?-a 3^7 f^SfTinita Bal — I I Camroro Fund MngL (Far Eaafi LW. Jap. Index T bl [1126 Uafl+ollj _ 

213.71 Aid 4.17 Ac^um. Units — .M? 4 335 tsco, HuicHiagn ’axc^iu Vjarcocit ndL H-y-onc 

Dealing tFri. wed. HKAPac. u t*l_bhs 2 jb m +.04J 2d TSB 1ml TTnsi Managers (C.l.) Ud. 

.... J 0.700 Bagatelle Bd.. SL baviour. Jersey. 093473484 
“ | era JerroyPctrf (46.6 4931 J 409 

9Ezax: isr ni tssMsa/sr-'* 

Target TsL Mngrs. LtdV faVg) JSS5£S? -,ac ’-Ki • I ^ Tokyo Factfic Heidings N.V. 

31GrevhamSL.EC2. Dealings: 0288 5841 „ I ''.'IT _ _ __ x ’ . lnumls Manageme nt Co. N.V.. Corocao. 

Enterprise Hoa*«, Portsmouth. 

lolersatteeal Funds 

£Equl(y [U6.0 323.4 

SEquiry 1 122 7 1305 

1 Fixed Interest. — tpfcj. 344.7 

5 Fixed lnu-rcct fl055 312B 

{Managed 1282 3363 

^Managed 1 113.7 320.9 

120 J. Sean.’ Schroder Wagg & Co. Ltd 

120.CbeapMdr.EC2. 01-5884000 

Cheap t May 17 —I SUSU.B | J 245 

TrafaScar April 30.. rosiM.06 j j — 

— Aslan Fd. Mil 35 ...fHBKM UM J 320 

Asian Fd. Mai 35 ... HSKW 

DarUuxFod 6ALM 

Japan Fd May 18... 5rSU5 

3141 +0, 
26U +1. 
175 7n +0_ 
29L0 +0.' 

100 Old Broad SL. EC7N 1BQ 



- j Capital IMS 90.11 | 4.11 AfenaLlfe Management Ltd 

_ nt Z™Z-~-- -IF id- Z 16 SL Geo rue's Wav. Sleveoase. 

Efa e 

Price* on May 27. Next dealing June 7. 
Guild Unit Fd Mgrs. LtdV OKc) 

Gatehouse !%*-■ I MUburn Houae, Netreaatle-npan-l^ne 

m_-|95J 3.0SJH .2 875 Dfpra*. 

»»9 US3-0.4 8.22 gBportPWia 

■a-.. Ii530 -1 .....1 - SfSa^isjr.' — 

Managed Tens. .1 
toll. Equity.-- 1 

rS a r Prop.Fa. lnc. 

-10 1 

-iu Flxnd InL FD 

RetPlan Ac. Pen. 


AS lev bury (02961 3841 CarlIO | 

1 ten J - Do. Accum Unite- 

--■■] — Do. High Yield 

— — I — Do. Accum Unite. . 

— -j — Next deal 

518 54.41 

BE data May 

. i" SL George's Way. Slcv«a*e. 0*38 5810] Target Commodity. 

’ . Growth Unite 1523 S52[ +03i 3.69 Target Financial 

fe> Mayflower Management Co. Ltd tS« i£iik 22- 

211S J4H8GrevhamSL. ECZV7AU. 01-0088090 ODo. Acc. Unite.. 

4.« Income May 10 — |1052 1107! I 820 Target Gilt Fund 

General May 10 |69J 729j | 5J9 

050 Mercury Fund Manag ers Ltd Do. Relnv.Unlis 

‘SO-Greabam SL. EC2P2EB. 01-8004553 Target Jnv.- — - 

”8 -tfjJ 

Sentry Aasurnnce International Ltd 

P.O. Box 338. Rtailat 5. Bermuda 

Singer & Friedlander Ldn. Agents 

23. Can non SL. SC-4. 01-2488848 

Dekafoiuh . - B4 4B 25801+0201 658 

Tokyo TsL Apr. 28 -[ 5US3580 | J 177. 


Stu Alliance Fund Mngt. Ltd 

I m w Son Alliance Hse., Horsham mwmi+i mu Bond Fund 

:r i 3i5h:J 322 RBSAasaA <LW 


Japan Fd 

N. American TsL 

040384141 [tad. Bond Fund 

+.M 2 69 T! 
• ' ) 0.70a as 

•.O. Bax 32, DOUglxBjoM. 

ajwstr? da 

UB s .. — NrtMad.FU.Acc.-.W.» S8fl — 4 

111 7—0 8 — Next Sob. DxyTJay K 

Sflj'* .. . — Par New Court P roo w y ace under- 

U5.SI -0 — totorMM Amt Man a twm e irt 

— Charterhouse Japhet? 

1 <i4 _ . L Paternoster Row, ECA 

sail nKnnxapm~.m^ up.u -8 J — CJ.Intieraatl — . — 124.0 

B'LPt*nM*n_Acc..u27J 134.H ...... — Accum Units 26 2 

— HriLFlanHan.Cjp... [X37.7 124 H — CJ. income — — M2 

— GOtPen.Acc_-L.p29a 137.0) — CJ. Euro. Fla 26.0 

. GOt ftacto._ - [1232 lmi] — Accum Units 302 

_ CJ.W.Iav.T*i 27.0 

— - Tramintermtional Life Ins. Ce. Ltd Ara g-,™ ? ... „ 

— =a«raBWga»EC4im-. 01-1038487 Price M«- Seat dealing May 34. 

— Tulip InvTOL Fd ; _IMa.6 148.0} J— Chieftain Trust Manair 

Merc.Gee.Mav]7- inJ 1927 

Acc.Ute.3Iai i7 — 2352 2E8J 

01-2483808 Merc InL Sbr» 17 .... 622 662 ..... 

jcu + M A ran. Uta. K»v 17 - SW 7U 

S3 234 M«riLExLApr7:~. 03 4 21X1 _.... 

jgflJ ;;;;;; Accum uts. Ap.-irr.pitia 2529) 

272 i :z: 451 Midland Bank Group 

US — ill Tlrnst Managers LtdV W 

S3 3 ””3 355 Cotm.wood Ho+se, Silver Street. Bead. 

Hambro Pacific Fnnd Mgmt. Lid. 

64.7 -0.9 434 £110, Connaught Centre. Hook Kodc 

as if OS0f»I==gSS ^-020 1 = 

120J +o.l 3.00 Hambros (Guernsey) Ltd/ 

30.4 -0.5 4 46 Hambro Fund Mars. (C.I.i lid. 

.WAV per shore Jixy 15. XU 54820. 

Tok>'o Pacific Hldgs. (Seaboard) N.V. 

Intlmis M anagem ent Co. N.V., Curacao. 

NAV per Share May 15. FL'S35.4L 

Tulip Invert. Fd IM0.6 148.0} — 

.m± = 

Mto-FTOlFU Cap., U8.7 134.? — 

. Man. Poji. Fd. Acc. .}125 j6 132.2) — 

Chieftain Trust Managers LtdVfaKg) 

11 New SL EC2M 4TP. 01-2833832 

American riOA Z5.4 -0 2) X5S 

High Income - lao 9 44.0d -0.11 939 

Infemalioofll 1243 26l) +fli[ 323 
Basic Reatce. TslUS .6 28.6, -oil 437 

7B.SS ; 70 45 ' 127.4 I 4tf-J8 ! toirftiRM ...! 147.B 

.il> ; il5*.w j IH'l/obl , lail .-'J 1 lu.iurtriiM.... 206.9 

B1.27 i 71.99 ! ISO.4 | | -■'jwiiiat ive...‘ 3B.9 

t IH.s-t :i%'Url<»i i a.L.oi , Totote 

497 A i 453.4 ' 649.2 ! 49.4 

. ('.-Si J .U+i.7Vij i2Mb-40: 

2-ilaj At'caj-u 
llhluvll Htb-.. 

148.7 ; 149.6 

199.8 194.6 

i-n . Ti it-tel |. . 
I' 6 Kaf ii* !;irii 
All •*lirvt . . . , 

**** ; «?; s C'!:i ti 


T l'oaes 212..49- 211.41 • -211.88 76 212.63 1S2 69 

’ ^*52 51 25b.06 235.37 ZSb.SO 236.091 256.32 200.38 
a.44 5 36 s.37 5 37 S-56 8.34. 6 57 

‘ «’o3 8-16 8 16 BAO, B. 21 8.19 9-4S 

4 SB Dia.OO £17.47 217.13. 218.52 219.06 191-47 

... 2I4.58 1 018.00 

lag May 24. Sheffield, S3 3RD. Tel. 0742 78842 

Commodity A (Ter.-IM 8 ' 63M -05J 5.6 

rs LtdVfaKg) SP.-4reum JK 792 -0.7 56 

Di -aaSar growth . 382 . 4L4 -0.7 32 

*, " f*® Do.Aeram W| SJ -0B 32 

75.9 -0 a XS8 Capi tal (782 M,] .ni 

j n 313 Do Accum — m . SA-U 33 

Mil income gL2 54 8 -Oja 63 -0j[ 437 Do. Accam. .p&3 62.S) -0A 63 

. International 1*8.0 52 W -0J 24 

gt. LldV (a) Do. Accum. —|51J ' 56H —03 2 4 

01-2180582 i§0 ' &f~2S-£ 5 + 

at xl | 4(i Do Accum — tsoji 6UH -05 0.4 

1 4.41 Eqmty Exempc — US2-? U6AJ 5 3 

______ • Do. Accum* — -MM 186.41 Jj 

-Prices at April 2a Next dealing May 3L 

-os 4 46 Hambro. Fund Mgrs. (C.l.) Ltd r ,__„ 

3L3 -Da ILS9 p n__ M i-*,i n Ir . LynuEJ I Uroap 

33 9 -03 130 r L ' uern4 f^ 0481-acEl OJ) ^ 1250 HamiJtea 5, Bermuda. 22780 

311a -IS aw InL Equity SUsKoia n3 230 lAraim. UniBI-.-Kg.M 1 - 

15 2n .. 1154 InL Svga. ‘A - |IJsb-02 LW CS0 -»-way IcL.\|SDSia) 2iS0| - ..J — 

20.4 -0.4 434 InL Svgs. 'g Jtfflji} 132) 230 2 New SL.SL Seller, Jersey 0X3427881/8 

aw w . lC3 „ J. . . , Prices oa May 17. Next dealing May 2i. TOFSUMas tB El 30 O.BC 6.00 

JS 53SSUKL'f -ta S Mamm lurint r aa i Hat. U<L X2££SgK~ “si TI 

so? PO e »*N 4723 1 Nassau, Bahmnoa . .Accum ab^S.- „ SI B63 ...^ _ 

M = .IZ 

1927) 4 48 __ 

2S83 448 

7U ' — §J5 Coyne Growth FtL . 119.0 

jgj Target TW. Mgrs. 1 

-> eg 1 .Accum. U nits) E 

~5j 5-way InL Apr. 30.... h 
230 2 New 5c_ih. Seller, . 
21. TOFSLMay te y 



r7,w*» ~ ,r . ' 1-* no* ,ia, ixassau. oanmnoa 

W-J:i m| ili| ,IS WS-7. ^ s fiffi-i ” 

JeroyFd Mnyl7-_t 
iNon-J. Ace. Uts 1 t 

Trade. Union Unit Tst. Managers* «Gwwweg» Ltd 

■ TOO. Wood StroeL ECJL 0J4B880U ^ P«i Guot^, . ■ ) 

3S TU LT May 2 W.O S2JM - I 5.42 GUero£e> TiL.. __- p.463 156.7^ -27| 3 69 

3-ZB HU1 Samuel Overseas Fund SLA. 

iN'on-J. Aje. uts 1 — B73.4 290-Oi J — 

Cilt Fund May 17 — (105.4 lC£*d ....] 1107 

lAccum Sharul-._U37 b 140 (hq | — 

Viclory Bouse. Douglas. Isle ai Han. 6884 2S023 

Managed May IB _..p29.0 135J9 \ 

Ud. latol MogBhL iCJJ LUL 
14. Kul caster Street SL Heller. Jersey. 
UJBFuaa P19M95 aU<l 834 

I interoanonaj aatJ -mj-U J.ZJ Income I5L2 54 81-03 634 n.+Un.u.Mii 

Trident Life Assurance CO. LtdV Basic Re«w. Ttt.lz6.fa 28.5 -oil 437 Do.Aeram §83 k| 634 flSSSliSSuT - 

Ftenriade Boose, Clou ce«er .. o«a3®u ConfederalJoii Fnndfl Mgt. LtdV (a) - pflloj \% iSS^S's?™ 28 

50aumc«yLflne.WCaAlHE 01-2120282 jKf ’ M-3 -»-| >«. r Accum Unitsi 

Growth Fund. 1412 413) _....[ 4.41 g^jjgis;.- “Kt lg| 7.” I S f SS.WH 

Cosmopolifen Fund Managers. A^ril'OTen draiVitoy If KSJlWJ 

3a Pont Street. London SW1XBEJ. 01-225BSC5. OfiMtsw- Pond Manazera 11A ClraTSiylS 

Co«OPOhLGULFd.[]7Ji 1M4-4 4® 

MinrierHac» Arthur SL.K.C4. 01-8231050 lenriboroMay 16 

Crescent Unit TsL Mgrs. Ltd (aXg) - JGnataeMay .a,.- WJ Mffl | 5.47 r Accum. uoitei 

4 Mekille CieiL, Sdinbuxgb 3L 001-3264831 April 38...-I87.I 9LlJ J 552 Van.Gwth. May 18 

— " Mii-nu an HLA linit Trust MUdmit. TM lAeram. Unite! 

338 Transatlantic and Gen. Secs. Co.V I 

338 91-89 New London Rd. Chelmsforil 0245 53851 : 

Crescent Unit TsL Mgrs. Ltd (aKgj - hGnstarMay 15..-.I360 rae) — 

4 BteMUe Cues, Sdinbmsfa SL 031-2264831 2** 5 *-?"" 1 ' ■* 1 

Crescent Growth __B73 291! —033 432 BfLA Unit Trust MgenmL Ltd 

OUQtzeraSWeLSWiaaJa OIK 

“ Van 'Ey. Va 

01-8307333. VanjtTee May 17 
416) J 433 fAmim.Uuitei 

Discretionary Unit Fund Managers itecoptball avc-ECsrtbu. 
22. Blonfidd SL.EG3J7AL 01-6384485 Mutual Sec. Flu*. (510 

Mutual Unit Trust Managers* feMg) 

*“▼ (4ecum Unite. 

01-8084803 Wick D»v. May 19_ 
+0JI 641 Do- Accum 


71. Rue Notre- Dome. Luxembourg 

tflfSlW 11(41-0.13} — 

523 International Pacific Inv. MngL Ltd VJ a Fuaa ■ 


Hook Kong 

1 | | 3C 

S 0.9j 

Id i 3 


22. Blamfidd SL.EC2M7A1. 01-6384485 Mutual Sec. PI-jn [51 0 54iJ +0 Jl 641 Do.Accum. 

Disc Income J!6LS SU* 5J6 ^ ; Sj • ^ Tyndall Managers LtdV 

E. F. Winchester Fund MdeL Ltd Mntnal High ^7d_ 1555 S9^+o'j) 8.74 IB CanynseRoad.BnstoL 

Old Jewry. BC= 0!-®82 ] ff7 National and Cororoercinl i , aSCS.%SS£ a ”'|ffie V* 

Crest Winchester- (IS 4 MJ. 1 . ._[ 608 ■ 31. Sl Andrew Square. Edinburgh 031 JM ai 51 IT 176.8 

GLWroeher 0«u[n.7 2l3 1 456 In woe May 17 1147.0 15J4J 620 «■ 

Emson & Dudley TsL MngmnL Ltd — .Kgi IMS "i.’J 337 K7.B 

20.Arlinpan5t,5W.l. 01-4097551 |" c . uni l ' a '.j 1 ”:. . ”“1 — I 337 CanyngcMay 17 — WA 

Emson Dudley th.. [ 64 s 69.7J | 350 National Provident Inv. Mngrs. LtdV '*««« - ^ 

48,Cr6cccburcb S-t . EC3P 3SH 01-82342D0 l^ 1 - — xrn^MayJj — 

Equities Secs. Ltd (a) fg) <n 3spx«fcv«.nt-lg j «|ri — | 3.85 srajSpSwn”: mi 

41Btebops£«e,EC2 01-5882851 Sfo +S-S — 3-g (Accum Unite! .. . 1632 

Progjwrive 1663 78.IWI-0.7I 4.07 SgnOswmaTSiga- gkg lag in 5coLlac.Maj n„|ttL6 

Amersham HrL High Kyramb* 
Equity & Law (66.4 6 

"Wees on pnl 27. Next dealing jiiy as 
'Fncca on May t»- Next dealing May 3L 

04Q4 33377 \atjonaj n'eslmi nsterVfa) 

4B.Grtcpfhurta S'* . rJ-Sr 3HH lil mWr jwv wi.b 

EqnlUes Secs. Ltd (a) fg) <il NP2.GtLUn.TM-j«| — I 3.85 SMSBpTSSwfTZ mi M 

4lBiabopssafc,EC3 01^882851 roifl — IS (Accum unite! .. . 1632 171. 

Progjwxlre — - — [66 J 7B.M-9.71 4.07 1 " OM H |jg SeoL lac. Slaj- 17„|l6L6 178, 

Equity & Law Urn Tr. 3LV faHbXo 523T« jC'iL'ff ASlffS « effi Growth ^ 

EstSt^ w vr**uS^E SMaoD * £*> mu 

Equity SLaw W.l «.8}-Ul) 4X9 lffl. chrapside. ECTV 6EU. 074M 60«. Do.Accum 

Framlingbm Unit MgL Ltd. (a) |t. 55^3 :gjl ^ SSSSST22 

5-7. Ireland Yard, EC4D5DH. 01-2480871 r :B anciai_- g-J iSfl -03 Slfe- High Inc. Priority 

AmertraE_ HSi 5101 [ LOB Growth lav. W-® 241 -13 *94 luteruaUanal 

Cspiial T»t. (117.8 125.3 +3.fl 338 iDforac— 30 W -Ojj 651 Special Sits. . 

IS SESSSSS^ffli §* tsb uut t™»» 0 > 

Do. Accum. .llWg llLW-fl.4[ 122 MEL Trust Managers LtdV l*Xg) 2L Chaatiy Way, 

Friends’ Provdt Unit Tr. Mgn.V Mihra c oi»rt.DoririnftSinw7. Mil iv,tcb C entra _|*s.o g; 

n"a ? S n^ I Ute Ci m.t N^ttarHichJn'-r .53^^ 7I7 ( W TSB terome"."^ wii 

s?sS:3i! a •s.’gsssittiteELH- (syMat-ii .% 

Framlington Unit MgL lid. ti 

5-7, Ireland Yard. iX'+B 5DH. 01- 

America — M-h _510I 

Cspital r»t. U17.S 125.3+3. 

Income Ttt __]K66 UOJJrf -0. 

InL Growth Fd. hllfa UU +6! 

Do- Acctun.., „|m2 IlfcBj-fl. 

«.8J -12) U9 lfl!i cheapmde. EC2VJSEU. 01-008 AM). 

Me. II ssjsaaf "ssaf- 

?«■« *S JE ‘ T ' ®fe“« ers iJerseyi Lid U5.TsLlav.pnd._l susu.73 [-022J o.« 

same + °' < Ik ^ Bo* 104. Royal TsL Use., JersqyOS34 27441 Net awwl May 18. 

jW5 — || ^SS i siV: s «■ & co. ud. 

720 534 Jardine Fleming & Co. Lid 30. Gnsham Street, EC2. 01-8004565 

617 ::::. ia Fl ^ Kor,c ■ eS^E 2 :m^] 7 '.| wsTtS |::;J z 

p i 35J Jardine Ti*. —I JUQUn I | 300 Gr.suSFd. Apr30-_ I SUS6.6S I -1 — 

6H -- 2-= jSdteiKJH" H “a Mr Bir. Hay 17 PVSUU6 »4 -J - 

Si iS J ^NAV'S^ USSt slsJnT Invest. MngL Jrsy. Ltd 

; SJO Nest sob. May 15 1. Charing Cross. SL Holier, Jsy.Cl 0SM73741 

mI *0 0 Ke>S *‘ IeS "“S*” Jerse y *AL rvf i^( i A* P rii l ro - |^? iIm! -Z 

M3 +09 SJ7 POBoxBS, SL Heller.Jertey..fE/ig. 01-806 TOTOi MoateTttAprii 30. [OL44 117a __ 

_ ^ ^ Fonselet pnia# ISO! __ 2.90 TVTMov 1'. BUSlBiM IBM I — 

•V Bondselex FrllLM 1*B TUT Lbi May 11 —[0027 10 m 1 — 

oa7S3 5« Keyw||x .BuopeZ m j"o5 World Wide Growth Managements -■ 

Sofa :::::■ ?« Sg5£ft.% L “ SS?f iSS-dsu - 

Jgl JJg ^SucTp::i Zl32#? 7._ WVMWlde Glh Fdl 5US14.40 I-0J6J — 

110 4 792 _ 

154.4 7.97 ■ 

1016 5 80 VOTES 

12B.4 5 80 ' 

59.4 587 

2880 5.07 Pnces d<3 inot include S premium, except where led lea led 4. and are Ir. peace unless other*iiq 

1442 537 Inal cated Yields 4w (mjwn in last column dlov for nil buying npeiun a Offend prieoa 

J2-S HI mcil * le * rr pen»^. b To-day’s prices, c Yield based on olitr price, d Estimated, g To-day’s 

178 Jq 6.78 opening price, h Lnstnbution free of U K.uxes p Periodic prenunm insurance plans. ■ Single 

Pro™™ insurance, x Offered price includes al! expenses except sgem'a commission. 
8771-04) 564 i Price includes all expenses if bauchl IhroaCh ma nagers x Previous day's price. 

89 u _o'3 SJU * Nel on roaltecd capital gains unless indicates! by 6. ■ Gcercsey gtoxa. i Suspended. 
49% T 983 ♦ xleld before Jersey lav T Ex-subdlvision. 

United States Tst. Inti. Adv. Co. 

14. Hue Aidringer. Luxembourg. 

U5.TSLlav.Fnd._| SUS10.73 |-0-12j 0.91 

Net asset May 18. 

S. G. Werbnrg & Co. Lid 

30. Gresham Street, Ed. 01-8004559 

Cn v-BcLFd. Moy 17.1 iL'S9A3 I ... .4 — 

Energy Int. May ]7.| 5U31720 J .....J — 

Gr.SUJFd.Apr3BL_f SUS665 3 — 

Mr ESur. May 17 [SUSULK H«| | — 

Warburg Invest. MngL Jrsy. Ltd 

1. Cbcring Cross. SL Holle- Jty.O 0334 13741 
CVFUd. April 37— [SUS1Z26 12SW .._.] — 

C3C Ltd April 27 ,_EZ2J5 12 M ....[-— 

Ilia, Bouievard Royal, Luxembourg. 

Worldwide Gth Fdl 5US14.4B [-0261 — 

01-2488971 F;tiincjaj 

[ IM Growth lav. W-g 

Idcoeic — g-J 

Portfolio Inv. Fd — W 5 


17.3 -03 
210 -03 
682 -6.1 
344 -02 

do, Accum 1&7 »4i-DBi 4ji "ie‘ aotbschlld TS8Scomsh-__ „te7 

G.T. Unit Managers LtdV Norwich Union Insurance Group <b) il » 

l&Flitebui+CiHuECSUTDP 01-638 8l2t P.O- 80* 4 Norwich NHI3NO: 000322200 " .““V,. ®' 

GT Cap. I»c 10.7 17V -OJJ 3,40 Group Tst. Fd Wd9 3S9.fl -J.6J 496 S ?, 1 ?,“* m a 

Ulfi. 0264 621 B8 

a -061 JJ7 
-0.7 357 

-05 721 
-0 6 721 

-05 2*7 

-0^ 257 

1 Royal Exchange Ave.. London EC3V 3Lli. Tel.: 01-JS3 1101. 
Index Guide ah at 10th May, 197S (Base 100 ai 14.1.77) 

Clive Fixed Interesr Capita! 128.00"™* 

Clive Fixed Interest Inenme 133.80 

CORAL INDEX: Clow 47(1 

G.T. far. Fd Un U62J 

fi.T. U S S> Gen 0460 

G.T. Japan & Gcc E&8.2 

•CL PetmEX-Fd p39 

G.T Int’l Frad —pOTfa 

G.T, Four YdsFd—B3.9 

40U-0.5i 5371 

01-4058441 C® 1 * Tn,st Aceotmt & MgsnL Lid 

am. King William SI. EC4B9AR 

«96 FriaraHse Fund-.. 049 0 1570} .[ 4 

674 WlelerGrth. Pod.._p9 4 31 ... . 4 

4gZ Do.Accum J341 •35.9J J 4. 

4 82 Wieler Growth Fund 


.. .[ 432 
... . 4.35 

J 43 5 


7 Properly Gruwio 

t Vanbrush Cuaraniteed S; ‘V, 

‘Address Minmii umli r I'iwmii'. 1 ' and prnp»rty Bnnd Tabk-. 

G. & A. Trnst feXggz) PeUcan Units Admin. Ltd (gHx) 

5. Raclrigh Rd. Brenbrood (0=771227300 81 founlninS^M^^rttW M43SSns wS?Z».« 
G.AA [31.9 3AlD}-0^ 455 PeUcan Unite PL4d «85d| ^ 5J3 SSKljBSZZ®! 

m «l :-i 


| 455 

.iJ 4A5 

i.G. Index Limned 01-351 3406. Three months. Conner 737-743 
29 Lamonl Road, London. SW10 OHS. W 

1. Tax-Free trading on eommodity futures 

2. The rmninofthy fu tares market fur the smaller investor. 



financial Times Monday May 22 1978 

^DUSTRI ALS--Con tinned j INSURANCE— Contimied 

1*6 AMJUClDtfUnw^ 
Apr. Jan Lfi.C. InL IDp. 
Suy June Lmex-.. _ 
JiW Nov.UaiiliKU.snp_ 

Jin. Aiic. LeadnUull STcrlinr, 
Oct M«y IcBasifcdi—... 
ISknf. Mar. LrtKrffFoh..[l(ta 
Apnl IsbwHsms-. 
J«n. Jiib Ui;h!n!u to.. 
Jan. Aug I figure (.'or nip] 
. r> i "?■ ^rpiJruup 10 b _ 
July Inner Prods. ■« 
Ffti. Sept. leuamli*.. 

“ , Ldriwi iop. .... 

rnw. Juij. Uinlsa' fcWins 
Ort Mar. Ij admire ... 
Julv Fnb.Us.imBfijp.. 

ft I w ^CHnl-k.lOp. 
Apr. I'l’l. l/mflrtn Tran* . 

AuH. Apr. lonsdaleUitnyl _ 

f c - *JV ne Boost 50 p j 
Juiw Der. M.Y.DbtL 

J°W MaranieLdailip 

PROPERTY— Continued 

INY. TRUSTS— Continued I FINANCE, LAND-Omtinued 

Mav Sr P t. MV;™ hl« 

ItcU Way MvtiMnK Go. 

May Ocl. nbtli 
A*> r - McCTreryLA-, 
AuR. Mar. MacpUnwn (D 

Oct Apr. MsTmcTusds* 
May Sj-pi. MafinoJioGixrai 
June Jan, BuritlaeJIH 
gn- «Pr. Man Snip iVw. £] 
Fob- J'ct.Mariinjr India 
Dre. Jun. Marshall L'r,. ‘A 1 
Jan. July Marshal! 1 ! Unis 
Dee. May Minin-Black. _ 
_ — MalhosousT^n 

^ nne Nor. Maynards 25p_ 
Apr. D« . Mwfamnflcr 10t 
OcL Feb. Mentnwre5p._ 
Jan. June Metal Bos £ 1 . 

Not- June Mfuiaoauw. 

Dec. June Metloy 

Apr. Nov. Hilo. Mntrs. 90] 
Apr. Dec. HiLCotompi 
.Mar. Ocl M'santoSpcSM 
_ — . MonmnesilOp. 

July Korsnn Crucim 
Oct Apr. MorndJ (Abel).. 
Ju. June Moat BobLllOj 
_ T Morite* 10 p_ 
J*n. June Uyton Go. lOp .. 
Mnr- Sept Nash iJ.FISeca 
Dee- June Natham'B.u.K 
Mar- AuR.NflU-rbUatl^ 
May Nov.N.CJU%9Mtf 
October NwreCj*2auibr 
Apr. Aug. Nell&Sp'ncwlO 
Oct -Apr. New Equip. Wpf. 
Sept Mar. NeweyGronpfl 

Jan. . Au g. Nercros 

Oct Apr. Morthem Kng 
Jan. SepL Norton iWrt.«k 
May Oct NMvicSetllOp 

Oct April No-Swill 5p 

May Nov. Ore Finance Or. 
Jan. June Office fc Elect— 

Oct MajOft«a>p 

Jan. June Ovenstoue 12hc 
„ 7~ P-MAtEMdino: 

April Oct ParterKoolI'A' 
Feb. Aug. Puls ft Whites. 
Dec. July Peerage ift* — 

Jane SepL PemlandlOp 

Oct May Reatcc 10p 

June Dee. Do. l?« ft. la. H 
Jan. June Petrocm 
„ — , Phillips Patenls 
May Jan. PhaaxfliKii 

May Dec. Ptw*Me50p_ 

Feb. Aug.PilbnetonBr.a 
June Dec. PibA Bowes La. 
Sept April Plastic Coast Iflp. 




155 3U0 
55 25 

£103 - 
134 17.4 

21 133 


308 ’ 



, 2 
»z.O 2 



April Oct 
April Oct 

Commercial Vehicles 






Serving the world 

financial expertise. 


Tokyo, Japan 

RONES — Continued 


Oct April P]pamramfl5p_ 
Apr. Nov. Pf>!>nnrk 10p_ 

Jan. July Pnnals 

Jan. SepL Pwd] Duff. 50p 

Jan. AuK.jlVmfWnilSpl 
Aug. ApnHPrefligeGroup- 
Jan. June “ 


Sept Nov. Pm. Lauds. 5p 
Apr. Oct Puilnan RJJ.5j 
Feb. Sept. RJ.P Group Mj 

Feb. Sept. RJ.P Group Mj 
Dec. JulylRTDGn»p20p_ 
■ JuIylRadiani Mil IT 

Jan. July Radiaoi Mil 12ta. 
June Randall JJ> lop. 

Jan. Juneftndafii 

Nov. Apr. Rank Oigan — 
Jan. July Rerkitt I'oL 50 jl_ 
July Feb. Redleani Glass.. 
Jan. June Reed Exec. 5p._ 

Jan. Aug. Reed lntlfl 

Oct June KrfrmPWffS— 
March Renown [nr. Y5S 
Feb. OcL RenairkGronp- 

Mar. Sept Rwmw 

JaJtxtAu. Reunare.-. 

July Jan. Riley IE. J.)10p„ 
Nor. May Redware— — 
Dec. Aue. KepnerHldfia— 
Dec. Aug Pa 'H — — 
Jan. July Rm&pnntai > n_ 
M«y Nor. kowan^fledea. 
•Nov. May Royal Worrs.— 
Jan. Sept Russell U l lOp- 









I StaC | Price IW fi US! 


May Nov. 

Apr. Nov. Sasa Hnlracr' - - 
• July St Gabon Fhim. 

Dee. June SnleTilncv 

Jan. Apr. SiD&a.’tfifc.-l.Ti. 
Jnn. Sepi. tongenGrp. 

Jan. Aue. Smpn Group™ 
Ji.OJa.A S.'hiunberKer$l 
Feb. July Scctnro...... ._ 

Dec. Jane Scot ScrilaNc^ 
Mar. Oct Scot ft LbLlnre- 
July Scare Hldw.™ 
Aug. Mar. SecunntrGp. — 

Aug. Mar. Da W VV 

Aug. Mar. Scrai«v5cmc«_ 
Aug. Mar. Do‘A‘N-V. 
Apr. Ocl. shana Vare 25p 
Apr. Srpl SirbcGonsan— ! 
■Due. June silcntniBhM(^i..| 
Jan... June siBiecmc ,vs>p_; 
Jan. July Sllv'rtiwmv IPp. 
July . Jon. 5iinjwiaiSj‘A'_i 

Jan... Jane siBiecmcA'Sip-; 
Jan. July Sllr'ithonie IPp. 
July . Jon. SbnpMKi iSj'A'- 
Dec, July Sketch b>v 

ffi . May SmldiftNepblCp 
e Dcc.SmrthFiwteSflp. 
Oct . Mny Solu InwZOp — 

Aug. Feh. .‘wimle 

Sept. Feb. SotbubyPB 

May NovJ^nmnriG ■A* 
Jan. Aujl SpcarO.W i_ — 
May pee. Stair*. TbOff^ — 
June P«c. DoBk% [>v.La. 

Jan. Aug. Sufley Int 

Oct May Stnc Fanitnre_ 

Nov. Apr. Stecllw — - 

— Ssdux Mail BEn 

Apr. Aug. aerlinsietWiii- 

Apr. Pec. Smcklakc 

Apr. Aug. Stcaefcill HMfia. 

Juno Nov. SumamF.i 

OcL Mav Sunlight Sct !0p. 
■Feb. Aug. Rolf liOe Speak- 
Juno Sn nfuh lAiiih SSI 
November Swire Paci be »Jc 

Mar. ScpLSyiwne 

January ralbrt5p., 

— TebbtHlOp — 

Mar. Ann. Tbamal Sjmd—. 
Jan. July Th. Tunes vn. Bp. 
Nor. May TUlin*T 3)p — 
Jan. Aug. TooxiuUR.W — 

Jane royc — 

Juoe Feb. Trafalgar H.20p. 
Mr JP-S D. Tmnf Un. USSit. 
Nov. May Ttaaspcn Dcv._ 
Feb. July Tranwiwd Gp Sp 
July Jnn. TWocfft.New.El— 
Feb. Sept Turner Cure. 5p 

Feb. Aug l 'Ml tail 

Doe. May L’sironiln-liM’*— 

■Frb. Aug. Umflet lOp 

Dec. May Unilever 
Dee. May Uo'i X.V.H 12— 
Jan. June WA timers ipp 
Jan. SepL UmrrdGaiJ «h.. 
March U. Guarantee 5p_ 

Jan. Jnly Unochronie.., — 

Jnn. July Valor 

Jnly Jan. Warn Iffp 

Feb. Aug. VlnumCrp.aip- 
July pec. -W Buboes 10p - 
Jan. May Wade Pons. lOp- 
Nov. Moy Waflcr Rrar. 5p- 
May N«>v. Waterford 5p — 
Apr. Oct Walsh innb — 
Frt>. AUR- KafccaSLK. 10pS_ 

July Dec. Wedgwood 

Mar. Sept. We<tn Board 10P 
~ «‘stmir),s Ciyl' 
May Nov. tTbvh U.!IK51- 
Un OcLKtscma.I.bnKl- 
— WilhytUMJ — 
Oct Apr WhiteiTuidiB- 
Feb. AUK. VJit«rrP.»P- 

Pec. July KhHe.'cyBSftW.- 

Oct, May mesiJ.i_._- 
Dce. June Wiifci5* Martel!. 
Apr. Ocl. Witk'wi.M’tehXJ ■ 
Juno Dec.— 

July Feb WillswJ I 

Mav NOV. Ujllf (George' — 
June Dcc.JWtlvaWal'.'i.WJ'- 
June Nov. Winn Indr 20p.- 
Apr. ocL WiUev .Tbomasi 
November Wood* saw 5" 
Maj- Wood iAn hen 5p 

December wood Hall 

November Zeflo*5p 




— 1 175 
• sso 
3 S 0 

A Vs 


m i 


14 ?7fl - j — 

■fHBl * 1 


Dec. Apr, 

Oct Apr. 

i — _ 
07 - 

n 162 

- 93 
6 .3 - 

Oct Apr. 

21 26 
25 362 
4.9 43 
14.5 Aft 
63 * 
3D 6.1 

I 2X2^6 
7.2 103 
1 7.9 7.4 
53 105 
- 45 

142 (3.5) 
122 (5.9i 
82 ft 1 
3.9 75 
61 33 j 
63 32 
t 61 

Malayan SS!1 

43 7.0 
93 4> 
195 - 
L6 8.S 
£25 — 

25 95 









Aug. Mar. 

- J.NegilSASUSl 

Jan. Aug. 
June Nov. 

Dec. Aug, 



Mar. D«. 

Apr. Nov. 

167 | 15.9] Q7c 



t ideas odnrnricc Lsticated. prices and net dilft ri i are In 
pease and dwnnliirtlciBi ere zsb. Bstbacted nrleefearetnaa 

pease and ftmlBrtleni ere Sp. Bstbacied prleefearetnca 
ratios and cevcn are tased ea latest atoreai repetia and eeconnu 
and, where presOde, srewdecad on batf-yeaity Bsarea. P/E» am 
cc! mixed oo do- tesla rf net dtabttoCiaB; bracketed Hcarrs 
Indteate U per cent, or sacra MKm a * * a an -nfl" 

fiadbUn. Cntn are lend an ’^nmtnao" jteQEdbB. 
TteUa at* hsaad on iteddle pricsn are erae^ adtoAed to ACT or 
M per cent and tBeo he istattiMBtdMtabHiM 
riSbta. Sucui tries atth «iin aiter than ■*— are 

onoted ladube a! the niniatuirm dollar pre udui a. 

ft Steeling denominated ao c n ritla i vUch b idn4o imeatum et 
iMItr pccaimzt 
o -Tap" Stock. 

* ZDgire and tows marked lluu bare bean adjusted to allow. 

for rights lamma for cash, 
t Interim atm increased or rammed. 

t Interim alnee tvdneed. paaaed or debarred. 

# Taa troo to nastwaidenzs an application. 

6 Figures or report awaited. 

tt Unlisted aecurip. 

0 Price x time of anspeesfam. • : 

9 Indi ca ted dwidand sRibt pmdbv i atrip aadtovrigfatalawws 
carer relates to prevknu dividend or bmcuL 
*•* Ptm of Stemp Paty. 

6 Merger bid or reorganisation In progress. 

4 Not comparable. 

♦ Same iKcrinc reduced Anal nod “or reduced rsrninga 

f Forecast dividend; cover on asmlnss updated by latest 
Smerua staiemenL 

t Coior allows tor conversion of shares not cow ranking for . 

dividends or natong only tor restricted dividend. 

A Carer docs not allow for shores which may also rank for 
dividend sc a future dete. No PIE ratio usually provided. . 
¥ Excluding a final dividend declaration. 

6 Sc Clonal price. 

H No par value. 

a Tat free, b Figures based on prospectus or other official 
estimate, c Cents, d Dividend cate paid or payohio an part 
of capita]; cover based on dividend on fall capital, 
e Redemption yield, f Flat yield, t Assumed dividend end 
yield, b Assumed dividend and yield after scrip issue. 

| Payment from capital sources. St Kenya, a Interim higher 
than previses total e Rights Issue pending q Eandnga 
baaed on p re li mUn gy figures, r Australian currency, 
a Dividend and yield exclude a special payment- l indicated 
dividend: cover relates to previous dividend, PIE redo based 
on latest annual earnings, a Forecast dividend; cover hosed 
cm pre v io us year's earnings, v Tax free up to 30p in the £. 
w field allows far current clause, j Dividend and yield 
hosed on merger terms, a Dividend and yield include * 
"pedal payment: Cover does not apply to special paym e nt * 
A Net dividend and yield. B Preference dividend passed or 
deferred. C Canadian D Cover and WE ratio cxchule prates 
of VJK. aerospace subsidiaries. E Issue price, r Dividend 
and yield based on praspectxu or other official estimates for 
1PJTV& C Assumed dividend and yield after pending scrip 
nndior rights issue. H Dividend and yield based on 
prospectus or other official mthnaigs for 1978- TV. K Figures 
baaed on prospectus or other official ewi mates for 1OT&. 
K Dividend and yield baaed on prospectus or other official 
estimates for 1878. N Dlvktoud and yield based on prospectna 
or other official os tin in te s for 1579. P Dividend and yield 
baaed cm prospectus or other official estimates for Un. 

Q Crow. T Figures assumed, u No significant Corporation 
Tax payable. Z Dividend total to date. 54 Yield based on 
imjtt toB Treasury Bill Stffl stays mchangod tmtii ntfl u rtt y 
Of Stock- • 

Kay Not. 

Apr. Jul 

4.05 LI 
15 * 

256 L 0 

Ang. Feb- 
May Nov. 



InvestaRst Trusts 


U2?Aug. Mar. 
d7J)|Seirt. Apr. 

Do. Cap— 




2 Sial 
124 , 
153 17.. 

'June Dee. 

432 13. 

98 27J 

— I Feb. Aug. 
Dee. June 
Oct Apr. 







69 3A 
26 3J 
360 - 

Abbreviations: ri as dividend; « ex aerip laauc; r ex rlgiuc; a ex ■ 
all; ri ex capital distribution. 

“ Recent Issues ” and Rights ” Page 37 ‘ 

Feb. Aug. 
Fed Aue. 

Feb. Aug. 


Hii& service is svaiLude to -very Company dealt is on 
Stock Exchanges throughout the United Kiagdom for a' 
fee of £468 per aacoa for each security 


Fife Forpe 

Finlay «s-5p. 

Mar. Aue. 


Apr. Oct 

Feb. AiiS'it® 1 *®™* 


112 4 

C.49 4- 

“S u 


3-3Mjnth Cali Bates 


A. Brew 

AF. Cement- 


Babcock - 



Boots Drug — 
Bowaterb— — 


British OC'den 

Brown tJ.i — 

Cadburys- — 
Distillers — . — 


[ m? lc%?..Z7. r 

la kca 

i 25 r.aif hrofcn . 

55 LegeHtGcn._ 

15 Lea Service— 

16 UoydeBnnk^ 

24 “Lai S” 

6 London Brick. 

20 Lcnrho — _ 
22 I n c i te lads — > 
5 Lyons (J.) 

10 “WaiEE“__„ 

8 Mrks. fi Sauer 
15 Midland Bank 

7 K.EJ 

11 PUL T* 3t Bank. 
14 Do. Warrants 

17 P&ODuL 

IB Plessey 

40 fLHJL 

9 Hash Org. 1 A’_ 
29 Rited IntnL 

18 Spiliere 

22 Tesoo 

£0 Thorn— — . — 

T>qq1pP — 

Oen. Accident 
Gftn. Electric 


Grand Met— 


Guardian... .~- 


Hawker Sidd. 
Etouae of Fraser. 

— 20 Tobe Invest. m 30 

— 6 Unilever 35 

— 23 Did. Drapery. 7h 

_ 8 Vickers 1? 

— 3 Woohrortha 5 

17 _ 

: /r. 

^ j ■'f 

A worldwide insurance 
broking service 

Head Office: 2$ Fenchurch St_ London EC3M 3DR 
Telephone: Gl-283 4611. Telex: MS 143 

— — — — AracraberofiiicIndJcapcCroup 


Monday May 22 1978 


Specia/isCs in Reinforced Concrete Design 

& Suppliers of Reinforcement y 

Architect, Stop multi-nationals 

surveyor j j a x* • 

fee scales demand Africans 

may go 


special U.N. conference have 
By Elinor Goodman, Cal J ed J 0r designed to 

Consumer Affair* Correspondent * n £ Jj.® Mtivines of multi- 

r national corporations operating 

in South Africa, Namibia (South 

SURVEYORS and architects may West Africa) and Rhodesia, 
be forced to abandon their agreed Mr. ZLmba Cbabala of Zambia, 
fee scales- The Goverment is speaking on behalf of African 

believed to be considering using countries at the fourth session 

its Order-making powers under of tbe Commission on Trans- 
rhe Fair Trading Act to make the national Corporations here, said 
two professions comply with the that multi-nationals. their 
recommendations of the Mono- affiliates and subsidiaries in 
polies Commission and so com- southern Africa, continued to 
pete among themselves on price, sustain and support, “the racist 
In November the Monopolies minority regimes in the area.” 
Commission concluded that the They were actual partners in 
restrictions on price competition maintaining a system of racial 
in tbe terms of membership of discrimination aod apartheid 
both the Royal Institution of there. 

Chartered Surveyors and the He- said: “The commission 
Royal Institute of British Arcbi- should take measures designed 
tects operated against tbe public to terminate their activities end 
interest, and should be aban- their collaboration with the 
dcm P d racist minority regimes.” 

Since then the Office of Fair Mr. Emmanuel Okai Vander- 
Tradiny has tried to persuade P u > - c °f Ghana considered that 
members of the two professions multi-nationals wbich co Ra- 
to co-operate voluntarily. berated with the South African 

Some progress has been made, regime in exploitation of natural 
but aparently not enough to resources in Namibia should be 
satisfy the Department of Prices, condemned. 

For this reason the Govern- Mr. Per Joeahl of Sweden 
ment is considering forcing tbe noted that South Africa was now 
chances on the professions, as it taking serious measures to in- 
did on estate agents in 196S. crease its military capabilities 

and the inflow of foreign capital 
P , was enhancing these measures, 

court LUredL “international pressure against 

Surveyors mav be threatened South Africa, including cessation 
with a reference to the Restric- of foe inflow oF foreign capital 
live Practices Court should be increased.” he said. 

Though surveying work as such Mr. E. A_ Azikiwc of Nigeria 
is specifically exempted from the called on all foreign investors in 
restrictive trade practice legisla- southern Africa to consider all 
tioo. valuation work is thought 
not to be. 

The Director-General of Fair 
Trading might argue before the 
court that the recommended scale 
of fees for valuations is an 
infringement of the law which 
prevents competitors agreeing 
prices without having first justi- 
fied the agreement before the 

The terms of membership of 
the two professional bodies differ 
from each other in certain im- 
portant respects relating to fees, 
though the effect of them is, in 
the Monopolies Commission’s 
view, much the same. 

Tbe architects’ scale of 
minimum fees is traditionally 
mandatory, while that of the 
surveyors is only recommended. 

RIBA has agreed to change the 
status of its fee scale from man- 
datory to recommended, while 
the RIGS has apparently said it 
will make some changes in its 
rules about fees. 

But the Fair Trading Office 
has told both that the remaining 
terms of membership will con-, 
tinue to stop their members I Making the announcement at 
competing effectively on price.' 

In a report to the Department 
or Prices Ibc Office is understood 
to have said that the changes 
so far agreed do not go far 
enough toward implementing the 

Monopolies Commission's recom- TTF 7 " "■ • 1 

mendatinns, and that there seems I I §A i|A/ll||£ 
little hope of a satisfactory J 

voluntary agreement. 

Black workers employed by them 
to be equal partners. 

Mr. Joachim Koch of the 
Federal Republic of Germany, 
speaking on behalf of the EEC, 
expressed tbe Community’s re- 
solve to bring about peaceful 
change and improvement of 
working and labour conditions 
for the indigenous majority of 
southern Africa's population. 

The EEC Governments were 
intending to do it by using their 
ties with the South African 

The delegates were speaking 
during a debate on the activities 

Mr. Pik Botha, the South 
African Foreign Minister, will 
brief bis country’s European 
ambassadors In London today. 
The South African Foreign 
Ministry said that Mr. Botha 
would return to Pretoria on 

of multi-nationals in sputhem 
Africa — particularly in the bank- 
ing and financial sectors— and 
their impact on social and 
cultural affairs and employment 

In an in-depth study on the 
subject the UN Centre on 
Transnational Corporations con- 
cludes that there is no evidence 
that the presence of multi- 
nationals in the area has helped 
to erode the apartheid system. 

Its report says that the rate 
at which new equity capital is 


entering South Africa appears 
to be levelling off since 1076 
owing to the decrease of flow of 
capital from the U.S., UK and 
the Federal Republic of Ger- 

Few firms are withdrawing but 
many appear to limit their ex- 
pansion to rates supportable by 
local earnings. A few. notably 
some of the major international 
oil companies, have announced 
plans to expand. In the banking 
sector, little change is apparent 
the report states. 

The report also concludes that, 
on employment, multi-nationals 
are generally indistinguishable 
from South African corporations. 
Consequently, the argument that 
the continuing presence of multi- 
nationals is necessary to main- 
tain employment of Black 
workers and provide pressure 
for existing employment condi- 
tions is not found to be convinc- 

Mr. Klaus Sahlgren, the UN 
centre's executive director, said 
that multi-nationals had only 
limited impact on Black employ-, 
ment opportunities, wage levels 
and trade unionism for Blacks in 
the area. They had not been able 
to moderate the repressive social 
and legal system of apartheid, be 

Tomorrow, the commission 
expects to get down to the other 
controversial subject on the 
agenda, that of recommending 
new disclosure guidelines — both 
financial and. .. “ social ” — for 
multi-national companies around 
the world. 

General Motors 5% pay 
ceiling on its top men 


IN AN eye-catching move 
supporting President Carter's 
anti-inflation drive General 
Motors, the biggest company in 
the U.S., has said it will put a 
ceilins of 5 per cent, on pay 
rises for its top executives this 

This is the level set for 
country wide salary increases by 
the Council on Wage and Price 
Stability, which is seeking 
voluntary co-operation of busi- 
ness and industry to contain 
price rises, which show signs of 
accelerating again. 

Making the announcement at 
the company's annual meeting. 
Mr. Thomas Murphy, the chair- 
man said that it would 
“evaluate" the discretionary 

pay increases to which some 
135.000 other employees might 
be entitled. 

This gesture by the large car- 
maker could give a boost to Mr. 
Carter's appeal for voluntary pay 
restraint, particularly since it 
counters the common complaint 
that pay curbs fall hardest on 
middle- and low-income workers. 

Union cool 

Initial reaction was scepticaL 
For a start. General Motors con- 
ceded that the 5 per cent, ceil- 
ing would apply to only 50 of 
the company's several hundred 
thousand employees, and all 
those 50 already earn several 
hundred thousand dollars a year. 

The United Auto Workers, the 

NEW YORK. May 21. 

main labour union at GM, also 
reacted coolly. Mr. Dougtas 
Fraser, their president said that I 
if the company was really j 
serious about containing infla- 
tion, it should limit the “exces- 1 
sive price increases ” it-was pass-, 
ing on to the American car- 
bnyer. The average price of its 
197S models had gone up by 
$600, he said. 

Mr. Murphy had claimed ear- 
lier at the meeting that the 
company's contract with its 
hourly-paid employees would 
raise labour costs by about 10 
per cent this year. He said that 
unless productivity increased 
there would be no way of 
reducing the cost of producing 
a car. 

in talks 
on new 
joint £27m 

By Arthur Smith, 

Midlands Correspondent 

plans a new £27 m foundry, has 
started talks with private sector 
companies on funding the pro- 

Birmid Qualcast seems the 
most likely candidate but Ley- 
laud would probably have a 
dominant interest in any part- 

Leyiand's decision to go ahead 
is In spite of a cut of more than 
half in foundry investment in 
the next five years. 

Prospects are receding for a' 
joint venture with the private 
sector, to provide a new £30m 
ferrous foundry in Lancashire. 

I for Leyland vehicles. It is feared 
that such a project, coupled with , 
the success of the Government’s 
industry aid scheme to stimulate' 
modernisation of the industry, 
would lead only to further 
surplus capacity. 

Leyland Vehicles, formerly the 
truck and bus group, is review- 
ing its plans and might look to 
co-operation with Leyland Cars 
to meet future requirements^ 

Investments scheduled for 
Leyland Cars' six foundries bas 
been cut from £I09m to £46m at 
1977 prices. Tbe main casualty 
was a new ferrous foundry on a 
green field site at Welling- 

Plants originally considered 
suitable for closure are likely to 
be reprieved at least in tbe 
medium term. The funds avail- 
able will do little more than 
bring the existing foundries up 
to the legal environmental and 
safety standards now demanded. 

But industry sources believe 
that in spite of the £46m limita- 
tion Leyland will press ahead 
with an aluminium processing 
plant on a greenfield site close 
to West Yorkshire foundries in 

The company, which already 
accounts for 6 per cent of alu- 
minium foundry capacity. Is 
aware of the need to be involved 
in new technology. 

The foundry is likely to have 
capacity of about 18,000 tonnes 
a year to respond to the trend 
towards greater use of light metal 
components, particularly the 
aluminium cylinder bead. 

Apart from the technical 
advantages of aluminium com- 
ponents they have a high added 
value which gives Leyland the 
opportunity of higher profit 
margins from in-house produc- 


The banks clear 
a tax hurdle 

The clearing hanks are not 
going to he pushed through a 
backdoor route to greater dis- 
closure, after all. They held up 
the draft accounting standard 
on deferred tax for six months, 
but tbe ciearers have now 
suddenly withdrawn all opposi- 
tion aod informed tbe Account- 
ing Standards Committee that 
they have found a solution to 
their problems. A belated brain- 
wave means that the ciearers 
will not be forced into what 
they regard as premature dis- 
closure of general provisions for 
bad and doubtful debts. Instead 
the big banks are to establish a 
top-level committee to consider 

National Bank of 
North America - 



two-thirds over net worth fqr 
its 75 per cent stake. 

While some UK banks' are 
still nervously wondering 
whether to shed a little more 
light on their loan loss pro. 
visions, one U.S. bank. Citibank, 
thinks that tbe whole idea of 
a reserve for possible loan 
losses should be scrapped^ its 
policy is to provide for .current 
loan losses out of current -eatn-, 
ings and it sees no good reason 
why other banks should not do 
the same. No doubt the UK 
clearing banks could think of a’ 
few. | 

Even the building societies 
disclose their provisions for 

! # 

the overall question of bank thp deferred tax oroblem. anticipated mortgage losses and . 
accounting and disclosure. E JSfialJv SL m^thatfo actual losses ’ L®st year, for^ 

The accounting standard— fu ^ re tb p c i ea rers will look ^ampte, s ^ 

which will now become SSAP unon their general bad debt in ® society, the Halifax, lost 

15 within a few months-calls provisions as permanent tax dif- £3 ^?y oa „ 

for disclosure in notes to the fences rather like entertain- P^ 0110 ' 
accounts of the major com- ^ expenses— deferred . tax Produce figures like that they 

ponents making up the total assets which will never be wou ^ ( ^ not dragging their 
amount of potential deferred recovered from the Inland feet ‘ 

tax. For normal companies these Revenue simply because, the m 

liabilities arise from so-called i ogic goeSt they will never fall. NatWest*S ratlOS 
timing differences: items such Consequently, banks will only N , Wpstminst er Bank 
as accelerated depreciation, and disclose potential tax liabilities tc 

stock relief are included in for stock and capital allowances. 

accounts for a period different m the profit and loss account ]{” ? ^ SJ ^M^nera- 

frora that in which they are additions to general provisions jj* JJJJl! tamoM 

dealt with for taxation. In the will still be charged above the ^ ons “ TWrhtiiP 

case of the clearing banks, how- line. Auditors say these f 3 22 

ever, it was thought that a third additions will not have to be ^ A ^ 

factor— the general provisions disclosed because they are 
for bad and doubtful debts, never likely to be material. And 
which are not tax deductible some vaguely worded note will 

until debts actually prove bad comply with the Companies Act successful the deal wm put 
— would have to appear as a requirement for the disclosure considerable pressure on its 
deferred tax asset By grossing of any special features affect- relatively low capital 
up this amount it would be ing the tax charge for the year. 11 u keen t0 “ummise the im- 
possible for anyone to establish Apparently the banks and pa ?\ . . , . — . M _ 

M’ur sf-ssL- h r « wj 

Prudent silence 'howe^TftoT thl £ 10m “! 

bate 1 *believed ‘that K =& M 

would simply make theirs a come clean about their full pro- SS^ecentf^rishts issue, 
special case - like that of the fits and general provisions. To j™™™*!!? "pi 
property companies.. In a letter a more general audience, too, . “JJ 

to the committee back in the banks’, stubborn refusal to 

August 1977, for example, they disclose their bad debt provi- J* ^ ** ? SSS ^ 
pointed out that “for reasons sions is:.' making them look 
of banking prudence, and with increasingly fuddy-duddy. What 
the approval of the banks’ have they got to hide, apart 

auditors these figures (general from bad management? J nppfl fm- 

bad debt provisions) are not at American banks have been h ff r J ?een -. a ( 1 obvious nce 
present disclosed and it is disclosing bad debt provisions 

strongly believed that to do so for years and have come to no Assuming the deal goes 
would be inappropriate and - barm. Take, for example, the through NatWestfs free capital 
undesirable, particularly while National Bank of North ratio would have slipped from 
the banks* international com- America, which NatWest plans 2.5 per: cent to around 2.0 per 
petitors are not also com- to buy. Over tbe last three cent. With the additional 
pelied". However, by the time yeart 80 per cent of its operat- financing, the free capital ratio 
the Big Four ciearers came to ing profits have been siphoned is now unproved slightly to 2.6 
discuss their objections with off into provisions for loan per cent. However, the free 
the ASC a few months ago they losses but there was never any equity ratio has moved out of 
were no longer united, and the suspicion of a “run on the line. This now slips from- L6 per 
meeting achieved nothing. bank ” as depositors took flight cent to 1-2 per cent (admittedly 
At this stage, according to on the news. It remains a per- no account being taken for 
one reliable source, the dearers fectly sound. bank and NatWest deferred tax), which compares 
dedded to call in their auditors, appears to be quite happy with an average of L9 per cent 
and quickly devised an answer about paying a premium of at the other big banks. 

UK decides to retain IMF 
$4.1bn standby credit facility 


MOSTLY Ury. Sunny spells. 
London. Cvnf. 8.. SAY. England, 
Midlands. Channel Islands, 

S. Wales 

Mostly dry. Bright or sunny 
spells. Near normal. Max. I6-1SC 
(81.84 F ). 

S.E. England. E. Anglia 
Cloudy. Ram near coasts. 
Rather coni. Max. 14C »57Ft. 

E. 1'enL, N„ N.E. England, 
Borders, Edinburgh. Dundee 
Cloudy, rain near coasts. 
Rather cool. Max. 12C (54F). 
N. Wales, NAY. England. 
Lake District, Isle of Alan 
Mostly dry. Sunny spells. Near 
normal. Max. 15-17C (59-03FI. 
Rest of Scotland. N. Ireland 
Matnlv dry- Near normal. Max. 
10-1 3C I50-55F). 

Outlook: Some rain. Sunny 

spells. Becoming con!. 


THE GOVERNMENT has decided 
to retain the 54.1 bn standby 
credit from the International 
Monetary Fund until January 2 
— the dale originally set for its 

Treasury officials are under- 
stood to have agreed new terms 
for keeping the right to tlie 
credit with an IMF team which 
has been in London for the last 
week or so. The talks have been 

A letter of intent from Mr. 
Denis Healey, the Chancellor, 
setting out the details of the 
agreement, is likely to be pub- 
lished within a fortnight. 

The credit was originally made 
available during the financial 

crisis at the end of 1976. The 
Government signed a letter of 
intent agreeing to restrictive 
monetary policies, the guidelines 
of which were reaffirmed last 

In the improved financial 
atmosphere prevailing earlier 
this year the Government was 
considering cutting loose pre- 
maturely from tbe standby. 

But the nervous state of the 
foreign exchange markets lately 
made such a move unattractive 
because of its possible harmful 
effects on confidence. 

The decision to continue with 
the standby was made easier 
because no real economic con- 

straints arc attached. The IMF 
terms are likely to have been 
substantially met in the Budget. 

The agreement with the IMF 
team is likely to have extended 
tbe ceilings set earlier on public 
sector borrowing and domestic 
credit expansion. 

The Chancellor has set an 
effective limit of £8.5bn. on 
public borrowing in 1978-79 and 
his forecast for DCE is £6bn. 

These two figures are almost 
certainly within the fund's 
requirements. The only way in 
which Mr. Healey's letter is 
likely to go beyond present 
stated policy is by transforming 
the DCE forecast into a ceiling. 







Hi. rim 





P. Aires 







Vrjnk flirt 




H. Keng 



Loir! on 



C 12 Mll.nsprribrfi. 
S 33 TT> Madrid 
5 3:1 91 1.Mandbsir. 
H 13 WlMcibnomr 
S --1 Milan 
£ rJ i- 1 Mourn- al 
S l'"' Cl' Moscow 
S H 13] Munich 
C SO fr; J Newcastle 
c n 33] New York 
5 13 M Oslo 
C 13 54 (Pans 
C Z 2 t: p. nh 
S li» W'PrjtUi 1 
S W I lit-jrKlai Ik 

•J 14 37|Rm Ue J'o 
S "4 75; Rome 
F 13 jjjstncatiorc 

V -1 Wlsrovkhiilni 

«i 1.1 39 (Strjshro. 

5 15 3S i Svilner 

V 13 jSiTVhrjn 

V Iti til I Tel ATiT 
S 1? ia! Tokyo 

F 1* H Tortinio 
U 37 fil Vienna 
S C5 7T Warsaw 

V 17 63 Zorich 

C 13 54 1 

Veiny | 
Mid -day ! 

•C *F 
C 13 33 
R 9 44, 
C n 33 1 
C 15 59 
H 14 37 
S 10 w 
S 17 C3 
F 19 66 
<; 15 34 
5 19 « 
S 51 79 
C 15 34 

n tr. 61 

Y 17 i« 

S I" H 
R in IH 

s ni> sti 

S 24 73 
C 20 W 
S 20 158 
S 59 Sf 
r 24 73 

F 17 B3 

‘No extension of Lib-Lab pact’ 



- Vday Vdny 

aud-djr Mkuuw 

V. *F *C *F 

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been warned by Mr. David Steel, 
Liberal leader, that the prospects 
for renewing the Lib-Lab pact 
beyond the summer are oil, but 
the possibility of Liberal support 
for another minority Labour 
administration after a General 
Election has already been raised. 

Mr. Steel, addressing the 
Liberal Parly Council in Peter- 
borough at the week-end. 
launched what many MPs will 
regard as highly premature 
public bargaining and laid down 
his key conditions for guaran- 
teeing support after an in- 
decisive election. 

Predictably, top of the list is 
electoral reform, and the means 
the Liberals will seek to achieve 
some form of proportional repre- 
sentation will be a national re- 
ferendum. They are convinced 
there would be a substantial 
majority in favour of reform. 

Mr. Steel speaking on Saturday, 
also looked forward to the next 
Government developing M a co- 
herent prices and incomes policy, 
tax reform, regeneration of 
health, social and educational 
services, improved industrial re- 
lations and the protection of civil 

At nu time did he talk speci- 
caliy of supporting a Labour 
Government without an overall 
majority, hut there is no doubt 
this is the likely pattern he 

The prospect has been streng- 
thened by the closing of the 
lead the Conservatives held in 
the opinion polls and by Labour’s 
revival in Scotland at the ex- 
pense of the Nationalists. 

Mr. Steel bas made it clear in 
private talks with Mr. Callaghan 
after the Finance Bill reverses 
that there is no danger of the 
Liberals withdrawing from tbe 
pact before the summer Parlia- 

mentary recess at the end of 

The importance of this for Mr. 
Callaghan was underlined at the 
weekend with the news of the 
death of Mr. John Mendelson, 
Labour MP for Penistone. 

This means that Labour is now 
in a Commons minority of IS 
against all other parties — an un- 
tenable position were it not for 
the pact. 

Worker-director row 
may flare this week 


THE controversy about worker 
directors is expected to flare up 
again this week as the Govern- 
ment launches its industrial 
democracy proposals in a White 
Paper tomorrow. 

An anticipatory salvo was fired 
yesterday by the Institute of 
Directors, which said that the 
proposals would mean accelerat- 
ing unemployment and a declin- 
ing standard of living for “every 
man, woman and child in the 

Mr. Jan Hildreth, director- 
general of the Institute, said in 
a letter to 30,000 directors that 
a conflict between Government 
and. industry. “ would inevitably 

follow" realisation of the plans. 

He warned against what he 
called “destructive meddling'* 1 
and “ another attack on business 

Tomorrow's White Paper, to be 
launched by the Prime Minister,! 
will propose a statutory obliga- 1 
tion on companies to consult 
trade unions before decisions are 

After three or four years, , 
union representatives could go 
on to claim one-third of the seats 
on the upper tier of a two-tier 
Board. Non-unionists would have 
some rights of appeal. 

After the Retreat from Buttock, 
Page 2S 

Continued from Page 1 

to stay 

French paratroopers arrived 
and the rebels dispersed. 

Most of the dead were 
Europeans and five Britons arc 
among those feared to have 
been killed. Two British chil- 
dren who were reported miss- 
ing laler turned np in 
Kinshasa, apparently rescued 
by Belgian troops. 

Mr. Kevin Press, a 34-year- 
old British metallurgical 
engineer with Gecamines, the 
Zairean state mining concern, 
said u within 10 minutes of the 
French landing, all shooting 
had stopped." 

He and bis botanist wife and 
their three small sons who had 
souvenir ballets to show 
journalists were “very lucky 
to escape." 

Mr. Press, who had worked 
in Africa for 13 years, said: 
“ I would want to consider 
very carefully my family's 
Interests before going back to 

He doubted whether 
Gecamines could operate with- 
out the numerous Europeans it 
employs on contract. Geca- 
mines gets nearly half its 
copper and more than half 
Its cobait from its Kolwezi 
operation, he said. 

Belgian officials here say the 
numbers of French killed or 
missing appeared to be '*ont 
of proportion ** to their relative 
numbers in Kolwezi 

AH refugees, however, 
agreed that the systematic 
killing of whites started sud- 
denly on Wednesday, Before 
that the rebels had fraternised 
with the Europeans. Some 
whites were eaught in the 
cross-fire between Zairean 
Government and rebel forces. 

Several refugees criticised 
the fact that anyone with a 
radio In Kolwezi had known 
the French and Belgian para- 
troops were coming well before 
they arrived. It is still not 
clear whether this was why the 
killing was suddenly increased. 

Kolwezi's white population 
was caught completely un- 
aware by the fighting which 
broke out on May 13 at 6 a.m. 
“ We were all asleep, and my 
first thought was Lhat an 
ammunition' dump had gone 
up," Mr, Press said. He con- 
trasted this with last year's In- 
vasion of Shaba. “Last year 
the fighting came gradually to- 
wards ns from DUilo, this time 
It started in Kolwezi itself/*