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Cloth of Distinction 

Holland and Sherry 





No. 27,572 

Wednesday May 31 1978 




hint by 

Frr>iiicnl Sadat nf Egypt has 
hinleri strongly that he may 
n.akc another dramatic move 
for peace in the Middle East 
should his present initiative end 
in failure. 

Mr. Sadal. having chided 
foreign correspondents /or their 
"distorted" reporting of recent 
events within Egypt.' added that 
ho hoped for n “surprise'' on 
July 23. the anniversary or the 
1952 revolution. 

The President said he would 
noi warn an Arab summit within 
tne next two months. “In those 
two months vvp will reach a result 
— riihcr the peace momentum 
will resume or it will prove to 
be a failure," Page 6 

PR system 
in Rhodesia 

Rhodesia - * transitional gnvern- 
mi'nt announced thal a system 
of pmnortinnal rcpresenljiion 
istSfd on ’•party lists" will be 
used in the country's first one 
niaii-nnr vole Heel ion this year. 

The executive council said it 
h.»d opted r«r ihc s>Mcin in order 
In speed up the electoral pro- 
1 ‘i'ss “as it does not wish to 
depart from the faith expressed 
!<•• .ill sien.riones to the internal 
.'••-•ivement which provides for in- 
dependence to he achieved by 
1'wiijJnT .11. JOTS ” Page K 

Refinery blaze 

\ our prnnle died in a aeries of 
explosion.; ai an uil refinery in 
Tf' .-i^ i!!'}. Texas-, and pari nf 
i h>' ii*x% n— no|*til.ii mit 40.000— 
r.atl :»i tie i vacua led. Page -I 

In liau, an oil well tire which 
started a week a jo and in which 
v' PH » Minnie died, is still out of 

CfTli , ‘! Pace fi 

Tanker blasted 

T fv 2d -d/.i -gga nf rhe Elent V 
pp'Viion threat ended yesterday 
when Mic lanker's hmv 

<.' 1:11110 w.«-s hh»un up 26 miles 
«IT iM«' F.asi Anglian coast 
Pam- R 

‘Bionic* Joanne 

Gold up 


• GOLD rose $3 to SIS2 j follow, 
ing the sharp rise nf silver. 
The London bullion market spot 
quotation was if 7.45p to 295.2p 
a troy ounce. LKE prices dosed 
S.SSp up at 296.55p aud three 
months was 9.3p up at 303.85p. 
The krugerrand's premium over 

its gold content rose to a 
common level of 3.07 per cent, 
from 2.57 per cent for domestic 
delivery and 2.43 per cent in 
the international market. The 
New York Comes May Settle* 
moot price. was 183.9 

O STERLINGS rose GO points to 
$1.8185. its tfade-weighled index 
remaining at- 61.4. The dollar 
was weaker in quiet trading, 
influenced by the closure of 
New York hanks for Memorial 
Day . \ 

• EQUITIES drafted lower in 
weak demand. The FT 30-share 
index closed 3.6 driven at 472.5. 

Carter backs move 
by West to curb 
Russia in Africa 


President Carter today threw his weight behind plans for a co-ordinated 
Western response to Soviet and Cuban intervention in Africa. NATO eouid 
not remain indifferent to Moscow's activities, he told the opening session of 
the alliance’s two-day spring summit meeting here. 

Mr. Carter welcomed the recent discuss economic aid for Zaire, such .ts Nigeria to participate 
Franco-Belgian mission in Zaire But there is also to be a wider aod diplomatic approaches arc 
and ai] efforts by individual discussion of the security lessons to be made to Angola and 
NATO countries “Iq work for to be learned from the recent Zambia in the hope of at least 
peace in Africa and support invasion of the country's Shaba securing their neutrality, 
nations and peoples in need." province. In today's speech. President 

Allied vigilance could 'not be Officials here stress that there Carter called for renewed efforts 
restricted to Continental Europe, is as yet no blueprint for from all NATO countries to meet 
he said. Western action In Africa, nor new military challenges from the 

His remarks came against- a are the Allies intending to east. The Soviet Union and 
background oF intensified extend formally Nato’s other Warsaw Pact countries 
Western consultation on how to traditional area of operations — Posed a military threat which 
protect African governments Europe, the Mediterranean and far exceeded their legitimate 
from external subversion. After the north Atlantic. It was con- security needs, 
discussions with the French, firmed that President Carter and Today we can meet that 
West German and Belgian President Valery Giscard challenge. But w e can- 

Governraents. the State Depart- d'Estaing, of France agreed at a coi hp sur « of countering the 

ment today said the U.S. was meeting here • last week that , *|. urc ‘ ml, itary threat unless our 

ready to assist in a limited France and the U.S. would help cHiaiic* modernises its forces 

manner in rhe formation of an -- - and adds additional military 

.African peacekeeping force for Bracrinski challenged, Page 4 m'ght. ■ The U.S. wouid step up 
Zaire. Extra flights Tor Zaire it6 conventional and tactical 

Washington also would be Europeans. Pace 6 nuclear forces in western Europe 

prepared to discuss the broader — — ■ ‘ Ul< * maintain strategic nuclear 

aspects of African security at a and support African countries if equivalents with the Soviet 
meeting with interested states, they P“l together some Umon 

in Paris next week, according to “operative arrangements" to ai the same time. President 
Mr. Hoddinc Carter, of the defend themselves. American Carter said the U.S. would pur- 
State Department. He emphasised support probably would be sue attempts to negotiate a new 
that the U.S. would not provide limited to the kind of transport aereempru in the Strategic Arms 
combat troops and implied that and fuelling facilities provided L:rai ■* I0 . n Talks with Russian, in 
it was up to other countries to for the Zaire operation. consulmion with Americas 

take the lead. Countries which have ex- al k „ , 

The Paris meeting is to be pressed interest in providing fll ?! r 7ht "wSi! B *iu!» P S ,0 *S 
attended by officials from the troops for an African force t ' redu “JJ Q )‘ force levels 
U.S.. UK. France. West include Morocco. Senegal. Ivory .ELI 

Germany and Belgium. lis Coast and Gabon, according to '„ nv l n 

purpose apparently is in prepare officials here. Ideally, the West sn i n as there Hm been 

for a JO-naiion meeting in would like to persuade an im- le - Pe ‘ > no " ds tJ,erc been 
Brussels on June 13 and 14 to pnrlani English-speaking country Continued on Back Page 

Talks on 

!,• B ?ir; n .i-gi-il 3. ■- ihr 

ti; %! British child in hi- fitted with 
.• ” '-mmc " h:iuii .I'Ni'inc. uf 
r'in'- , *tn;. . Nurlli I.nndt*:i. 
(•in :» v. ilhnut ,i riiihi hand :unl 
h.-nl ilu- pi-vv uni* Silled in S'lt-dk-n. 

Irn-r-l- anil nrishluuira 
iui-r .1 mure ih.m t;'*.nnu inwards 
rh< I 

Opera arrests 

I: pul ire iiuvi- arrested 

'..iiMVchii'- Tiiniiii.i-i. artistic 
■iiii-i’tnr m f ili<- Kmui! i‘p«*:a 
1 1 . i ; i - .and It lit her rival 

. • 1 - 1 1.- <.ti «-Iuiijc< .lllOCIIlJ exini- 

•. .!i t nun Slate outer- 

i ••.- ..rl .mil i'«nTiii-liiin 

Dublin escape 

1*i-l ;r.' -»:-r hliriting l»n nil’ll K ho 
n-.,- I’l. t\ tv i-iipe ladder from a 
ivap.'ir. „• ■ helped 
i>-. -» ant’d :n , eniiiplH , er!. One 

Phillip Fo> . «.IS 
...,i i,i !>.• .i miiinr nu-mber of 
: 1 1, - IRA. 

Water shortage 

Then: • »tc water shortages in 
.if Di-vnn and Cornwall 
■ •* -t-.i n*-i. n- heavy tiemand bought 
i .,<(11 ny the huce influx of 
• :-:5 nr- er the weekend- They 
i-.iri-ii lii^mchnod to cu home 
thv holiday ox I ended into 
wiifi i!n»u>.md- dill nn 
'm tn’.ichcs. Page 8 

Briefly . . - 

r..r uii-r England ruah> player 
\t : L.i ; [i Weiih. his wife. 

r ;.n. i : i , r and a ftiend arc fftiml 
a •’ 1 i.-in-o|isi:r 'ihwh went 
:r ifii-.’L f'-u over .the 

ns Juan t.aihe*' *'* Spain will 

• i I h hi’i’ome I he first 

inarch i» \i>U Communist 

ihlishnr KmKti Maxwell has 
t<d u» ui.ik,- thr shnrlliM in 
. ,..,,v-h tor .« Labour »Mlidi- 

>orlhiniptnn South. 

«.• in 

n- K VF -vat called in to ferry 
to Hie Borrow dale 
il'rv in i he Lake liisiriei 
i, -re -in extensive forest fire 

i- rajinj.- 

• GILTS were unsc^OM* bj the 
aulhcritics* lack of jruoves to 
alleviate market Tears aboot 
future' monetary POlkt>-. The 
Government Securities index 
fell M.1S in a 1978 low of 69.92. 

A W \LL STREET closed 2.51 
up at 831.2A. 

Air terminal 

• BRITISH Airports Authority 
chamnaii Sir. Norman Payne 
named that many prospective 
.ur putt-enger* to London would 
•»o elsewhere if the proposed 
muvth air lerminal at Heathrow 
i„ ri’ji’i’ted. The UK aerospace 
industry is t-uHaboratine with 
McDonnell Douglas of the U.S. 
on research into making jet 
engine^ quieter. Pago 10 

• iri s £ 200 m plan to develop 
a chemicals complex in northern 
German.' has been approved. 
The company will also Like over 
UiiMiissc Atkmtik. a chemicals 
producer at the Wilhelmshaven 
site Back Pasc. 

0 NEB plan to become world 
leader in the semi-conductor is 
a blow to Hie General Electric 
Company, on the point of a 
major decision about production 
ar semiconductors. Back and 
Page S 

issued dismissal notices to 500 
members of the Society of 
Graphical and Allied Trades in 
a dispute ai its Loughton, Essex 
works. Pape 10 


• KUALA LUMPUR Kcpong. the 
Malaysian plantation group, says 
lhcre is an even chance lhat it 
migln he able to repeat last 
year's record pre-tax- profits of 
iitmiit £9.5ni. Pape 37 

trolled hv Chloride UK. increased 
iu mover by S per cent over the 
>car to March 31. Page 3i 

• NISSAN MOTOR, manufac- 
turers of Datsun cars, suffered a 
substantial reverse in profits for 
the year ended March 30. des- 
pite an tl per cent rise in sales. 
Pace 37 

• MAX FACTOR and Co. presi- 
<{cnl and chief executive Mr. 
Samuel Kalixh is *° down 
un July 1. Norton Simon, the 
parent company, disappointed 
with Max Faclur s U.S. earnings. 
Page 35 

OECD nations in disarray 
over economic 


pence unless otherwise Guthrie 

> , . . I iinnhniirnr ■>— -J 




15 1 

•bbiU’ : - 1 ." 

- -s . .. T.'i 










Long bourne 
Ando Utd. Devs. 


Kloof •••■ 

Mid-Easi Minerals 


52 S 

ll'U-c nJJH _ 00 


Roan Cons. Mines — ™ 

UM Drio 

Westfield Minerals •• -W 

Barclays Bank •*77 

Etmhsh Property - « 

Matthews Wrlchtson lbaxn 

Rock ware ™ 

Swap Hunter 


he ln»>. 3,4 

+ 10 
+ tn 
+ 25 




WESTERN industrialised coun- 
tries failed 1o agree today on 
proposals for a concerted growth 
strategy tabled by the Organisa- 
tion for Economic Co-operation 
and Development Secretarial, m 
spite of the pessimistic outlook 
for the world economy 

The inconclusive outcome of 
the OECD's economic policy 
committee, on which the 21 
member countries are repre- 
sented by senior officials, casts a 
shadow over the Western eco- 
nomic summit due to be held in 
Bonn in July. 

It was originally hoo'-d that 
the OECD countries iculd come 
up with detailed proposals 
specifying the amount of 
stimulus to domestic demand re- 
quired in six or the leading 
economies tn set the western 
world on a medium-term growth 
path of 4.5 per cent. This, it was 
calculated, was enough to pre- 
vent a rurther rise in unemploy- 

Yet such a prospect now 
appears to be out of the question. 

Given today's disagreement, the 
OECD secretariat will find it 
difficult if not impossible, to 
table quantitative proposals at 
ihe organisation's ministerial 
.Yit-viing on June In and 15 
\or does it c e«v»i ’hat 

can V vr.rk'.-d mn hy 
Raial? in time n, the econr-inic 
* in*. tut a nnn.h laJ**r. 

EEC rose by 16.9 per cent, to 
$3.119bn in the first four 
months of this year, while her 
imports from the EEC rose 
hy 37 per cent, to $1.745hn 
West Germany's trade and 
current account surplus in 
the same period this year was 
DM 11.9bn (DM ll.gbn last 

Details and EEC energy talks 
break down. Back Page 

Mthougb most memoer conn- 
*»•€> continue *0 f4!Djort the 
principle of a co certed gr^.vth 
st-are&F- under -.v^v-h not only 

PARIS. May 30. 

ii* stronges' ermomies. except 
•- the O.S.. .iii« :t.^ so-called 
“ convalescent " economies like 
the UK. France. Italy ard 
Canada wouid take expansionary 
aciion. many of them obj^ci to 
having prec^c targets imposed 
un them hy ihe. OECD. 

This is particularly true of ihe 
Wcsi Germans and Japanese, i 
upon whom .r.c-st of ir-? anus i-irl 
expansjonar. mci-suies would. 
Ji-.-. . 1 

The secretarial'* model re- 
quired Japan tu stimulate' 
domestic demand hy 1.5-1.75 perl 
cent and West Germany by 0.75 < 
10 1.00 per cent of GNP. France 
and Italy by 0.25-0.5 per cent and 
the UK and Canada by a maxi- 
mum of 0.25 per cenL The U.S.. 
mainly because of its continuing 
balance of payments problems, 
was not asked to do anything. 

The secretariat's experts 
claimed such moves would in 
crease growth in the OECD area 
as a whole by 1.25 per cent by 
the middle of next year. 

Editorial Comment, Page 30 

By Michael Cassell, Building 


THE CHANCES o[ an early 
increase ill building society 
interest rates arc likely to 
hinge on the outcome of a 
meeting tomorrow between the 
societies • and Government 

The Building Societies Asso- 
ciation Conncii meets next 
week (o consider the first 
increase in raicx since Orlu- 
her, 1976. Its decision will be 
heavily influenced by to- 
morrow's session or the Joint 
Advisory Council, which brings 
together ihe societies and 
officials from the Department 
of the Environmeni ami the 


There seems little risuht 
lhat, left to themsclTes, the 
societies wotUd be contemplat- 
ing an increase of about 1 per 
cent in both investors’ and 
borrowers' rates. 

Mortgage rate now stands at 
81 per eent while ordinary 
investors receive 51 per cent 
net on their savings. 

Next week's council meeting 
will be provided with figures to 
show thal net receipts in May 
fell to about £220m. against 
£335m. in the previous month 
and the record £59 0m. in 
October 1977. Receipts in June 
are expected to drop as low as 

The societies, however, are 
committed to maintaining a 
high lending programme mer 
the next few months, in spite 
or the 19 per cent redaction in 
mortgage quotas asked for by 
the Government in April. 

Although new' mortgage 
commitments — excluding ad- 
vances for items such as 
improvement work— have now 
fallen to around £6fK)m a 
month Trom the March loial 
of about £(2Qra, the societies 
are still having to draw on 
liquid funds to maintain lend- 
ing levels. 

Average liquidity levels are 
high enough to allow this to 
continue Tor some months, but 
thp societies will ntl warn to 
continue tu run them down if 
they belie* e that they are. 
merely delaying an increase 
in their own rates made 
inevitable by general interest 
rale trends. 

Whether or not their rates 
do increase, however, wilt 
depend largely on the attitudes 
they encounter ai tomorrows 
meeting. Ministers might feel 
that, if a mortgage rate 
Increase Is inevitable, if would 
hp best for societies to gel it 
out uf Uic way at once, rather 
than be postponed by the con- 
tinuing nse of liquid funds. 

There hate been suggestions 
(hat (be Government could call 
off the current lendtug restric- 
tions. unpopular ..among the 
societies, in -return for a 
decision to held rales down. 

Oil groups 
may boycott 



1 A NUMBER of big oil companies 
may boycott the next round of 
offshore exploration licences 
unless the Government makes 
;ho eundt lions more attractive. 

Tin;' warning is implicit in a 
report from the offshore nil in- 
dustry being studied by Dcpari- 
me k i l of Energy officials- It stales 
that draft terms for the proposed 
sixth round of exploration 
licences are mo onerous and that 
they conflict wilh previous 
Government undertaking:, m the 

Some international oil groups 
JaV have made i' k.mwn that 
(they may nuf hnthcr ;o bid for 
I new acreage if the Government 
‘slicks to its published conditions 
•and fails tn offer attractive ex- 
ploration blocks ■ 

So far. rhe department has 
kept secret the location of the 
;4U sixth-round blocks to be 
! offered this summer. These will 
• provide the acid test of the 
t industry's feelings about explora- 
' tion conditions on the UK 
Contine-ntal shelf. 


The UK Offshore Operators’ 
Association, w'hicb represents the 
main groups in the North Sea. 
has criticised most of the pro- 
posed new licensing conditions. 

; described by Mr. Anthony 
j Wedgwood Bonn, Energy Secre- 
I tary. as a means of strengthening 
J British control over its offshore 
1 oil resources. 

j The. association's report has 
(no! been published but it is 
j thought to question the wisdom 
!of offering such a small number 
j of blocks. Companies have told 
the Government that the pace «»f 
! exploration needs to be stepped 
I up if energy «d (-sufficiency is to 
be maintained into the 1990s. 

The warning coincide* with 
new Government figures which 
show (har the North Sea is con- 
tributing more than half eff 
Britain's oil needs. Crude oil 
I production in April reached a 
* record SSI.:’.**?-' ba’vcK ,1 day 
‘ average, about. 000 h/d more 
than in March totai crude oil 
production dm mg April was 
3.9m lonnes. >n increase of 
308.121 tonne* ■■>*1 the previous 

However. tjw association 
anparentlj ha>= mid Mr. F.enn 
lhat bis prop<i "d sixth-round 
enndt lions will nn certain ty 
and c n nfusion anion.’ evpliiraimn 
groups. Oil cnmi-.inles probably 
|will br. invited !'i offer British 
National Oil Corporation a 
higher slake ;n licence partner- 
ships than (he 5! per cent laid 
i down in the last licence round. 
(Furthermore, companies are 
likely to be asked to pay for 
some of the Stale corporal ion’s 
_ exploration 
j It is claimed v-ithin the indus- 
try that these conditions not only 

lessen the attractiveness of com- 
mercial licences but they make 
it difficult for the Government 
to evaluate one hid against 
another. The options are to be 
l reared like an auction: com- 
panies will be expected to bid tha 
amount u» which they would be 
•willing in accept the corporation's 
involvement and expenses. 

BeraOsr- Mr. F-enn secs these 
condition-; s'? a cornerstone of 
his new licensing policies, it is 
likely that he will oiler at less* 
a proportion of fhc more promis- 
ing oil exploration areas in Mn 
aiiempi tn promote keen competi- 
tion among offshore groups. 

The association claims thal Mr. 
Bonn has gone hack on assur- 
ances given by hi in. -.elf and pre- 
vious Energy Ministers lhat the 
corporation would operate under 
normal commercial criteria with- 
out special advantages and that 
Ihe Government woitld not seek 
more than a 51 per cent Slate ion in the North Sea. 

According to industry sources 
the association has opposed par- 
ticularly strongly a move to make 
1 ho corpurahon the operator for 
the exploration phase in six of 
the blocks. The selection of 
these blocks will be made nnh- 
afler appPratinns have been 
received from thr private oii 

A move designed to encourage 
invnlvpmeni of smaller indepen- 
dent Companies has been ques- 
tioned hj »hc association. The 
department has imposed that 
the Mil industry should have the 
option of rhanging operating 
companies within licence groups 
when exoloration work is re- 
placed hr a development project. 
The association apparently has 
suggested thal the operator for 
exploration and development 
stages should be designated at 
fhc outset. 

Other points which are known 
to have caused concern wiihtn 
the industry include a proposal 
10 increase licence application 
fees and rentals by 25 per cenl. 
The association ha-s protested 
lh.-V this would contravene the 
Government’s policies on pay and 
prices restraint. 

Thr> plan— in' rorii iced for fiffh- 
round licences — to make offshore 
groups relinquish op to two- 
third? ol 1 heir exploration acre.- 
agp i:> seen to be restrictive, 
particularly m a sma” round 
featuring many •■ne-blork 
licences Gonna me* .arc con- 
cerneil ihai !he> will he forced 
l" hand ba^k to Government 
acreage known t« coni a in an ml- 
bearing struciurf 

They have cmiplcined lhat the 
proposal to base royally pay- 
ments on the tax value of oil. 
rather ihan on the wcfl-hearf 
value of oil as in some nf the 
earlier round?, will add to the 
taxation burden, particularly on 
some of ih«' smallc fie’d-' 

Car leasing tax test case 


THE CAR leasing industry could 
shortly face another crucial tax 
test case following moves against 
Harold Perry, the Ford • main 
dealers, by the Inland Revenue. 

At question is the motor 
dealeii' rights under the 1971 
Finance Act to claim full tax 
relief against the purchase of a 
car for leasing, in a single year 
— previously dealers had only 
been able to clann at an annual 
rate of 25 per cent. 

Since 1975, when Godfrey 
Davis and Ford Credit won two 
controversial test cases against 
the Inland Revenue, a multitude 
nf cal’ leasing companien — 
operating a wide variety of 
scheme? — have been taking 
advantage of the 100 per cent 
write down allowance. 

More recently, however, the 
Inland Revenue has been indi- 
cating iis dissatisfaction with a 

number of car leasing companies 
claiming the favourable tax 
status and Harold Perry last night 
revealed that the Revenue bad 
indicated that it intends to resist 
the group's claim for “ first year 
allowances in respect of passen- 
ger cars leased to customers" in 
1S77. - 

Mr. Roger Hoare. assistant 
group managing director, said 
that Perry's had been claiming 
the first year 100 per cent write 
down allowance since 1975 This 
had not been queried by the 
Inland Revenue until the publi- 
cation of the latest report and 
accounts covering the year end- 
ing December 31, 1077. 

This showed a tax charge nf 
1210.000 and Perry s said yester- 
day thal if the Inland Revenue's 
case prevailed then the tax 
charge was unlikely to be 

increased above £460,000. 

Mr. Hoare said that the group 
had not treated the write-down 
ailoowance any differently in the 
latest accounts; The group .had 
taken legal advice and, had born 
advised that the Revenue’s case 
was unlikely to succeed. 

Neither party involved in the 
dispute would give the reasons 
behind the Revenue's opposition 
to Perry’s tax claim against its 
leasing business. 

The group had decided to make 
the issue public ahead of its 
ACM due to be held tomorrow. 
Mr. J. F_ Macgregor, the chair- 
man. commenting on the current 
year's trading, said that profits 
in the first half would he sub- 
stantially above budget and the 
corresponding performance in 
the first half last year. 

Lex, Back Page 


American ■ news 

— labour 


Technical page ... 


IntL Companies 


.. 4 


... 35 

. 6 


... 40 

.. 7 

Leader page 


Foreign Exchanges 

... 40 

8, 10 

UK Companies ... 

.. 30,32,34 

Farming, raw materials 

... 41 

.. 10 

3D nine 


UK stock market 

... 42 

Third world problems for 
the IMF 20 

A case study af a Japanese 
shipyard 29 

The Babcock and Wilcox 
reorganisation '17 


Brerlurev arrives to inspect 

Czechoslovakia 3 

Washington’s building 
boom: biggest since the 

war 4 

Egypt pyramids oasis 
project 6 

.Yajnt&ian initiative loses 
momentum 6 


Design In Industry 13-16 

Sri Lanka 31-35 

ApP.iflUUCnU ......... 




note Ruca 


L»mt>«rtf - 

Crmwei 1 * 


Hen and Metiers .. 


EistertaiBi: -.‘at Gtrtc 


Money . ... 


European Qnu. 



FT-Amwtes indices 
Gardenias — 




Share laronMttdfl .. 
Tedcy'i Events . ■ . 





TV and itwHe . .. 


Urrti Trusts .... <o 

C D. Brarmll .. .. 3609 

Csflimcni Page 36 

Inn Di Napoli 42 

Bsotk lMenmtlaaal 33 

Credits Italians 1? 

Dunlop a 

Hcsiair 31 

J- *- Holdings ... _ 33 

Moss Bros. . . jo 

i£a VheB ". » 

Seaawi Uw. Trust A 

Every Monday at 18.15, SAA’s 
non-stop leaves for JVburg. 

Size other daily flights get you to 
South Africa fast. 

Another takes you to Cape Town direct. 
AH flights connect with SAA r s 
exclusive route network to 11 destinations 
in the Republic. 

Comfort oii the way 

South African Airways 
Where no-orsels a stranger 

For full details contact you r IATA travel agent or 
South African Airways 251/9 Regent Street, London W1 R 7AD. Phone 01-734 9841. 
Woerioo Street, Biirningham, 021-643 9605- Hope Street, Glasgow, 041-221 2932. 
' Peter Street, Manchester, 061-834 4436. 


■^RnandaT Trues Wednesday 

J^y-31' 1978 


call for 
State aid 

By Our Own Correspondent 

PARIS. May 30. 
FRENCH shipbuilders have told 
the Government that unless it 
. increases its subsidies to the 
industry the country’s “ modern 
ami hash performance” yard/ 
will virtually cease to exist. 

The shipbuilding federation, 
>n its latest report, claims that 
the aid it receives is substan- 
tially below that made available 
to competitors. In France the 
aid was normally around 15 per 
cent of the cost price of the 
ship, whereas in most other 
European countries it reached 
30 per cent, and in the U.S. 
50 per cent. The Dutch govern- 
ment absorbed threequarters of 
shipbuilding losses, the federa- 
tion claims. 

In addition, Germany, Holland 
-and Norway made special credit 
facilities available to Third 
World countries. 

The federation wants the 
Government to place orders with 
yards for naval vessels, tugs, 
dredgers and coastguard vessels 
to help take up the slack, warn- 
ing that 30,000 jobs depended 
directly on the yards, as well 
as 50,000 jobs among suppliers. 

For the third year in a row. 
orders booked last year were 
equivalent to no more than 4 
per cent of the tonnage 
delivered. This compares with 
an ordering level in the world 
as a whole equivalent to 42 per 
cent of deliveries. 

The current French order book 
of 1.635m tonnes compares with 
a level of more than 6m tonnes 
in 1975. Orders totalled a mere 

19.000 tonnes in 1976 and only 

15.000 tonnes last year, while 
no foreign order has been placed 
for three years and even French 
shipping companies have placed 
more orders outside France than 
with French yards. 

Practically all the ships on 
order at the present will be 
launched over the next couple 
of years, leaving a very bleak 
horizon for the I9S0s. 

The Government has already 
indicated that it is not willing 
to spend more than its present 
Frs. 1.5bn a year on subsidies. 

Increase in French retail 
prices accelerates in April 


suffered the sharpest monthly 
rise for a year in April, and it 
seems likely that 197S will see 
the return of double figure 

The year-to-year increase is 
running at 9 per cent, and the 
next few months will be a period 
of sharp prices rises reflecting 
the imposition of higher tariffs 
in the public sector and the pro- 
gressive liberation of industrial 

Ironically, the first batch of 
prices to be freed was announced 
this morning by the Economy 
Minister M. Rene Monory who 
announced the Government’s 
intention to set industrial prices 
completely free from control by 

The sectors who will enjoy 
price freedom from Jane 1 
include industrial vehicles, 
machine tools, tanning, and tyres 
as well as industrial pastry, 
clocks and jams. Industrial 
vehicles and machine tools count 
among the most depressed 
sectors of industry at tbe moment 
and they have clearly been given 

PARIS, May 30. 

some priority to try to help their the Government is pledged to 
cash position. The motor industry maintain the pure basing power 
will follow in mid June. of all but the salaries at the 

Mr. Memory' promised that the !£? » ™y 

bank base rate would come down JJgL “jj? . to n J££ 

in June, although the official dis- JSSf""* f ^ P 
count rate will not be changed v M ^ H t*,—. 

*»<?*" D0t ,0 jeopardise the MtatauHLwSSd 

The price ipdett Sh » SitS 
advanced for every month this more « realistic” prices in 
year. It rose by OJ per cent in ^ public sector that the index 
January and by 02 per cent over the summer would make 
more eacb month since, to arrive nainful readinc. 
at a 1.1 percent April increase. - “* 

The May index will certainly be But he draws a sharp dis tine- 

very poor, because a wide range tion between what- he calls 
of public sector increases includ- “ adjustment ° price increases 
ing power, rail and underground taken against the background of 
transport and postage were Arm monetary and wage control, 
imposed during the month. a firm currency and a limited 
In addition, the ending of budget deficit and “ inflationary " 
price controls will have an increases when the general eco- 
inevi table impact on the index, nomic performance is under no 
although the indications axe that control; 
in most sectors a combination of A further step in the Govern- 
competitive pressure. and Govern- .men t's- industrial policy will be 
meat advice will limit the extent reached tomorrow when 31. 
of the increases. Monory reveals plans to 

In its turn this will rub off encourage the flow of savings 
to some extent on wages since into industrial Investment 

Setback to hopes of Saudi deals 


KING KHALED of Saudi Arabia 
met President Giscard d’Estalng 
privately today for talks in which 
the two Heads of State-azp under- 
stood to have concentrated on 
economic co-operation, the 
Middle East and their mutual 
concern about Soviet influence 
in Africa. The meeting was 
followed by a working luncheon 
at which the two leaders were 
joined by senior members of the 
French and Saudi Governments. 

Hopes had been raised in 
France of a spate of Saudi deals, 
including arms deals, as a result 
of the recent signing of a 
protocol arras production pact 
wi-th the Arab Industries Organi- 

sation. But French expectations 
of big defence sales arising from 
the King’s 48-hour visit were set 
back when Prince Saoud iba 
Faisal, the Saudi Foreign Minis- 
ter. said his Government had 
M negotiated sufficiently with the 
U.S. on its defence needs. 

The Minister, who was inter- 
viewed on French- television, was 
referring to the recent U.S. 
agreement to supply Saudi 
Arabia with 60 F-15 fighters. 
French reports had suggested 
that Saudi Arabia might still be 
Interested in the new Mirage- 
2000, or the planned Mirage-1000. 

The Saudis have implied full 
support for France’s military 
intervention in Zaire. The Saudi 

PARIS, May 30. 

Foreign Minister said that 
Soviet and Cuban interference in 
Africa aggravated internal con- 
flicts and provoked the entry of 
foreign powers Into the region. 
A country on its own. could not 
face up to the Russians and the 
Cubans- For that it needed 
foreign help. 

Saudi Arabia's endorsement of 
French action in Africa was con- 
sidered one of the prime factors 
behind suggestions that the 
Saudi Arabian Monetary Agency 
might be ready to place large 
sums in French banks. A Paris- 
based Arabic weekly said last 
week that about $5bn. might be 
invested in France but there has 
been no official comment 





By Metin Munir 

ANKARA, May 30. 
PROVISIONAL first quarter 
figures indicate that a con- 
siderable improvement bas 
taken place In Turkey’s trade 
deficit as a consequence of the 
economic austerity programme 
introduced by the Government 
of Prime Minister Bulent 

The trade deficit in the 
January -April period of this 
year was $736m, more than 
46 per cent lower than the 
comparable figure for the pre- 
vious year. This is mainly 
attributable to -the decrease m 
Imports imposed by the 
Government because of tbe 
shortage of foreign exchange. 

At $1403 m tn the first 
quarter . imports were at their 
lowest for tbe past four years,' 
and over 30 per cent lower 
than in - the first quarter of 

Provisional figures Indicate 
that exports In the first quarter 
of 1978 were $6G7m, slightly 
higher than the previous year’s 
figure but considerably lower 
than the pre-slump $935 m o£ 

According to the Central 
Bank’s weekly statement, gold 
and foreign currency reserves 
on May 12 stood at S 730.5m. 

Import transfers have been 
opened on a limited basis 
earlier this mouth. These were 
shut down In February. 1977, 
except for strategic and emer- 
gency goods- Central Rank and 
Finance Ministry officials 
expect the transfers to be 
gradually accelerated as pro- 
gress is made In consolidating 
debts and obtaining fresh 

In 1978 Turkey Is aiming at 
exports of $2£50m, 45.5 per 
cent more than in the pterions 
year. This target is considered 
by some economists to be 
rather ambitions. Imports, on 
the other ’ hand, are planned 
to be $5,000m, lower than the 
previous year by 16 per cent 

It’s a long flight to Australia 

When you get off the plane, the only 
place you'll want to go is bed, regard- 
less of the time of day. 

Qantas is the only airline with 
special direct flights which get you to 
Australia in the early evening. 

You can go straight to bed at bed- 
time, and sleep off the flight through the 
night. Then get on vyith your business 
the next day. 

In all, Qantas have 10 flights a week 
to Australia. 

fc&icrjrQanias travel sgesffcr deraifc. cr salens nr. Canrss, Or. 

. AsiaSe! Great Strand, London WC& 5CC StaiweiclisMteadi Laras 5.V.V 

The specially timed ones 
leave Heathrow on Mondays, Thursdays, 
and Saturdays at 10.30 and arrive at 
Melbourne at 18. 20, and Sydney at 20.40, 
the nextevening. ■ ■ 

And as soon as you land, you can go 
straight to bed. 

So the next morning you'll feel more 
like a dynamic businessman, and less 
like Rip Van Winkle. 

OlHNTHS (§) 

We know the best way to Australia. 


THE' VISIT by Mr. Leonid doubts as to just. how far polrti- 
Brezhnev, tbe Soviet President, cal consolidation and the healing 
to Prague is a major political of the wounds of 196S has gone, 
event with implications not only In an obvious move to thwart 
for .Soviet-Czechoslovak relations possible protest actions, the 
but for tbe future of the Soviet secret police have rounded up a 
bloc as a whole. Its importance number pf human rights activists 
is at least three-fold. connected with the “ Charter 77 " 

1— Occurring less than three movement , According to some 
months before the ICtfa anal- sources at lea*t five people, in- 
versary of the invasion of ciudmg Mr Pavel Landovski. tile 
Czechoslovakia by Warsaw Pact actor. Dr. Ivan Medek, the music 
forces, the visit is a symbolic critic, and Mr. Lukas Dobrovski, 
reaffirm a Finn of the doctrine that the writer, have been taken into 
support, protection and con- custody. . 
soiidation ■ of socialist achieve? The blow comes after several 
znents constitute the joint inter- weeks of tightening police sur- 
nationalist duty of all socialist veitiaiice and harassment, 
states." The Czechoslovak leader- Though the action is obviously 
ship has decided to extol motivated by the Brezhnev visit, 
by all possible means the 

Yoove got better things to 

Mr. Leonid Brezhnev, the 
Soviet President and Com- 
munist Party leader, arrived 
in Prague yesterday for a 
roar-day Stale visit. He was 
accompanied by Mr. Vladimir 
Shcfaerbitsky, the Ukrainian 
party chief and Politburo 
member, and by Mr. Konstan- 
tin Hu&aknr, the central com- 
mittee secretary In charge of 
contacts with ruling Com- 
munist parties. 

Mr. Brezhnev walked slowly 
and at times appeared under 
strain. Tens of thousands of 
people were given the day off 
to greet him. 


'’ fraternal’ international ' assis- 
tance " which is now claimed to 
have saved socialism in Czecho- 
slovakia and detente in Europe. 

2— Mr. Brezhnev is going to 
give all-out support to the 
Czechoslovak leadership, beaded 
by President Gustav Husak, who 
was put in power in April. 1969, 
eight months after Soviet tanks 
I bad crushed the shortlived 

Prague Spring” and Mr. 

I Alexander Dubcek’s reformist 

3— President Husak and his 
colleagues will do their best to 
show their guest that they have 
things fully under control. The 
Communist Part; has close to 
lipi members, half of whom have jt js also part of special pre- 
joined 'since 1971. After a blood- cautions for the approach of the 
less purge of hundreds of tenth anniversary of the Soviet 
thousands of party members and invasion. 

officials at all levels, there is no police stationed to front of 
reason to doubt President the U.S. Embassy have lately 
Husak s statement earlier this begun to stop for identification 
?°i , ^ a l 0ur 18 firm more and in&re of the 100-odd 

. daily visitors to the reading 
i F »L a 5!S. e r ibl ^ I ? surround ' This /show of toughness 

^f!h- - Chai ? er 1 1 ^ nt »*' generally regarded as a 

/ anU K ry ’ 1977 : f®* reaction tq/the Yuri Orlov trial 
srasfi f0 L human - rife in M oseo wfand a similar tighten- 
o h * e « ¥** ***“ ia S of ^ -reins to the Soviet 

there can be Bo talk of a senous Dniott * m 

tjjlg? 'IS* 1ST' Some -' For all the political sym 1 
^***5 Involved In Mr.- Brezhnev’s visit, 
bv fj® 06 * 1 toe substance Of his talks may 

has ' well he economic. In a recent 

caus* human rights speech to the plenary meeting of 

tS vpI + w the Central Committee, President 
1 th ecountry. Husak bluntly warned his 
Drovtacla? liste ners that it was high time 

t0 move “ frora toe general to 

crowdS 'aad'taratifti l^caoital spec,fic5 ' trom words t0 action" 
SI risitor gai« tSTimpSStoi “J « lh J ?*»»?* ®* n W* 
that this heavily industrialised a decisive struggle 

country of 15m has once again ag ii n 5li*“ re i ,Ucr ^ C o' _ s 

become a docile and basically an SB per cent, in- 

apolitical member of the Soviet . natl0Q ‘ l l I income in 

bloc. At the centre of Prague on Vo-Rjm C y ?, ars °L the 

a spring day in the sunlight the I^i6-8D Five Year- Plan, follow- 
risttor might be tempted to tn ? V"° ««*es dp years of 
think that he is in a boom city, economic _ conduction, and a 
That impression is not only due bumppr harvest m 1977, the 
to the milling crowds of local country faces serious economic 
people and foreign tourists, but problems which, as President 
also to the construction of new Husak pointed out, cannot be re- 
and refurbishing of old buildings solved overnight. A so-called 
which is going on on an un- “phase out" programme . was 
precedented scale. The queues adopted two years ago by the 
before the. vegetable and fruit last Party Congress, but the 
stalls and the dense crowds in closure of unprofitable plants 
thet self-service stores convey tbe has so far involved only g.fioo 
air of a “ normal ’ communist- people, although .dozens nf fae- 
ruled city. tones, especial; in englneerm's 

Yet a sequence of recent are working at a loss, Mr. Husak 
events is apt to raise some complained. 


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unruffled — never a convention. 


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fth Es M Streets, JOT^astengtoo, DjCOOOOJ 
Telex 64245 
or see your travel agent 
jKanbsil H. Coyne. Proprietor 


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^ Press tor ana vamonen 
-Sr=SlratT, London. EOIP4BY. 

6 The Fmandal Times lm , ms 



on l ' 

President Brezhnev (left) with the Czech leader, Mr. Husak, on arrival at Prague- 

Prague visit reaffirms Brezhnev 
doctrine of fraternal intervention 

His candour, coupled with 
warnings . that tbe lack nf 
criticism and self-criticism- that 
was the cause of Lhe crisis in tbe 
1960s has not yet been over- 
come, is seen by some observers 
as a straw in the wind. Experi- 
ments to raise efficiency and 
quality in 150 selected enter- 
prises are the first officially 
blessed moves since 1968 which 
could inject a new spirit into 
tbe economy. 

But for the time being they 
are much too timid and piece- 
meal to bring about radical 
chance - 

The Soviet Union provides the 
rnle of armaments producer <jet 
trainers, tanks, ammunition and 
vast bulk of Czechoslovakia’s 
imports of crude, natural gas, 
and iron ore. It also accounts for 
one-third of Czechoslovak foreign 
trade and the indications are that 
3Ir. Brezhnev's visit will lead 
into a new phase nf intensified 
co-operation. But the question- 
marks concerning long-term 
delivery commitments by the 
Soviet side remain, even though 
Czechoslovakia is one of the key 
workshops of the Soviet bloc in 
addition in playing a traditional 
small arrasl. 

Without the guarantee of long- 
term fuel deliveries, the Czech os- 
losrak leaders cannot undertake 
the efforts necessary to maintain 
living standards, which are not as 
high as they could Jie or the 
Czechoslovaks think they should 
he. The better-than-expected 
economic performance of the 
Husak regime until the “oil 
shock” provided the basis of 
relative political stability. Thus 
Mr. Brezhnev's assessment of the 
situation may prove vital both 
for Czechoslovakia's economy and 
the future political outiook- 

Fls4Ni-|,i Tiwrs pnMM|e<i «U!I» except Sun- 
Jji* *m» holiJjTK. U.S wtwcnptioit safiftiw 
i»ir I rein Un 5S*n.nii rjir main per 
SetovJ class postwe naht at Nt****^. n.y. 


- 'i 

£&&& i 

■ - ‘ » .=• 'f 

' t . 

Bonn Minist;r rules Sicily poll 
out early accord strengthens 


on currency stability trend 


Communists obtain IMF document 


Minister. Herr Hans Martboefcr. 
said tonight be did not believe 
the European Council meeting in 
Bremen in July could hope Lo 
reach agreement on a plan for 
a wider zone of currency stability 
in Europe. 

Speaking to the foreign Fress 
association here. Herr Matthocfer 
said the dale was much too early 
for accord on the issue. Many 
more months, perhaps a year, 
would be requfred. 

Ideas for such a zone were 
sketched by Chancellor Helmut 
Schmidt to other European 
leadens at the last European 
Council meeting in Copenhagen 
m April. There had been some 
hope that ihe Bremen meeting 
might at least bring a big step 
forward and that an accord 
could be reached relatively soon 
after that. 

Herr Matthoefer said Bonn had 
wanted lo go ahead with the 
scheme as early as possible. 
Others, he mentioned Britain, 
preferred to move more slowly 
and the Germans were prepared- 
to go along with that. 

BONN. May :}0 

Asked Whether he fell Britain 
nr Fra nci would he first to return 
In the E ropean currency snake, 
Herr Mai hoefer said he believed 
it wcailcF be France — within a 
year. Hfc stressed that was his 
belief, nit a firm forecast. 

On tie prospects for the 
Western economic summit in 
Bonn in mid-July, ihe Minister 
said: " ft • contrast in my Chan- 
cellor. 1 do not overestimate this 
summit, tfpr the economic under- 
standing t)f the participants.'* | 
. On the 'part Bonn might play. 
Herr Mattioefer produced a long ! 
list of problems facing a German 
Government seeking to bring 
about more economic growth. He 
agreed that there were differ- 
ences of emphasis between 
himself and Count Ottp Lambs- 
dorff. the Economics Minister, 
but thought they would be able 
to agree on a joint strategy. 

Count Lambsdnrff has recently- 
indicated that he favours tax 
cuts as a means of helping bring 
about an economic boost. Herr 
Matthoefer favours State pro- , 
grammes lo help increase invest- ! 
ment. I 

Security is key poll issue 


BONN. May 30. 

TERRORISM and public security 
are re-emerging as major issues 
in advance of key West German 
provincial elections next week- 

They have forced the Liberal 
Free Democrat Party fFDP> on 
to the defensive, threatening its 
parliamentary existence in one 
state and bringing pressure for 
resignation of some of its 

The latest to come under fire 
is the FPP Justice Senator in 
West Berlin. Herr Juergen 
Baumann, following the escape 
of an alleged terrorist from a 
city prison at the weekend. 

As expected, the opposition — 
with one eye on the impending 
rolls in the state of Lower 
Saxony and the city-state of 
Hamburg — has been pressing 
strongly for Herr Baumann to 
step down. 

Meanwhile, the FDP Federal 
Interior Mimsier. Herr Werner 
Maihofer. is haring to defend 
himself not only against opposi- 
tion attacks but from criliciMti 
within the Social Democrat Parly 
iSPD)-— which is allied with the 
FDP at federal level. 

Ten left-wing members of the 
•SPP have urgod Herr Maihnfer’s 
resignation on the grounds that 
members of ihe federal Border 

Security Force, which Falls under 
the Minister’s authority, had 
been carrying "out unauthorised 
airport checks into "left-wing” 
reading matter. 

The opposition Christian 
Democrats »CDID are criticising 
Herr Maihofer for guile another 
reason — alleged incompetence 
during the search last year for 
the industrialist. Dr.' Harms 
Martin Schleyer. and his 
abductors. The recent arrest of 
alleged German' terrorists by 
Yugoslav authorities appears to 
have done little to help Herr 
Maihofer’s cause. 

The upshot is that the FDP 
is facing highly unhelpful pub- 
licity days before elections 
which are hound to be difficult 
for it m any case. In Hamburg 
the FDP is in coalition with the 
SPD. in neighbouring Lower 
Saxony it is in alliance with the 
CDD. It thus has a hard task 
in convincing voters that it 
pursues a steady policy course. 

A further problem is that in 
both Hamburg . and Lower 
Saxony so called “ green parties ” 
of environmentalists arc cam- 
paigning hard. They arc not 
generally- experfed to oMjin bis 
support, hut even a small cm 
into the FDP vole would nut the 
Liberals in grave difficulties. 

I By Paul Betts 

) j ROME. May 30. 

,|THE LOCAL elections this 
I ! weekend in Sicily, where the 
i : ruling Christian Democrats’ 
j share of the vote increased by 
2 per cent and that of the 
• Communists dropped by 9 per 
i cent compared to the 1976 
r general election. have 
. strengthened the trend which 
i emerged in local polls two weeks 
■ agn. Then the Christian Demo- 
crats <DCj advanced by 3.6 per 
. cent and the Communist Party 
: (PCIl lost 9 per cent in the 
i share of the total vote. 

In Sicily, the ruling party 
i gained 42.6 per cent of the 
- popular vote compared to 40.5 
per cent in 1976 and 394 per 
cent in the previous local elec- 
. lions of 1973. The PCI's share 
of the popular vote totalled 20.4 
per cent, against 29.4 per cent 
in 1976 and 17.9 per cent in 

A noticeable feature of the 
Sicilian polls is the advance of 
j the Socialists Party (PS1). which 
’ increased iLs share of the vote 
I by 4 per cent to 16.9 per cent. 

| gaining back the ground Inst 
jin the 1976 elections. In the 
local polls earlier this month, 
the PSI made the biggest single 
percentage gain of any party, 
seeing its vote increase by 
almost half to 13.3 per ^nL 

In the wake of its recent 
electoral setback, the PCI has 
carried out a critical analysis 
of its disappointing performance. 
While stressing that the results 
were in part conditioned by the 
kidnapping and subsequent mur- 
der of Sig. Aldo Moro, the 
Fortner Prime Minister, the Com- 
munist leader. Sig. Enrico 
Berlinguer. has urged bis party 
I to adopt a tougher line. 

However, he reaffirmed the 
party’s commitment to its 
strategy of reaching a “historic 
compromise ” in Italy — or the 
grand coalition of all the coun- 
try’s democratic forces — despite 
the clearly negative electoral re- 
percussions of the recently 
agreed political formula which 
associates the PCI directly with 
the parliamentary majority. 

The main political forces are 
none the less presenting a united 
front in the current campaign 
j for the two referenda promoted 
I by the small- Radical Party on 
j June 11. The main parties are 
urging their volers to reject tlK 
! Radical Party's proposals yj 
j abolish the current public order, 
legislation— the so-called “ Legge | 
Reale "—and to repeal the public 
I financing of political parties Bill. ■ 


THE LEAK to the leading Com- 
munist daily here O Diario of a 
series of apparently classified 
briefings on the Portuguese 
economy has caused considerable 
embarrassment among leading 
[officials and tbe Bank of Portugal, 
who have been leading negotia- 
tions with the International 
Monetary Fund. 

For tbe documents, the last 
of which will be published to- 
j morrow, include paper EBS77- 
’264 dated July 15. 1977. which is 
[stamped “not for public use” 
I by the European Department of 
jthe IMF. and which was appar- 

ently circulated here at board 
level among members of the 

- Although much of the data is 
consigned to history' now. the 
very fact of its publication 
seems in have cut across the 
limits or banking secrecy which 
officially bad been re-established 
when the Communists had been 
purged from the banking system 
In 1975. 

This followed months during 
which bank accounts and classi- 
fied information wore freely dis- 
closed by bank workers for the 
sake nf “ revolutionary vigi- 

Officials at the Bank nf 
Portugal are reluctant to make 
any formal comment on the pub- 
lication of the documents, 
although they have admitted that 
the matter is under investigation 
3nd will be taken up with tbe 

As far as O Diario is con- 
cerned. the publication of the 
documents reveals that “ IMF 
officials have access to data 
which is denied to tbe Portu- 
guese themselves.’’ 

Such observations are nfien 
made by independent sources 
here, who are attempting to 

LISBON. May 30. 

wrestle with the problems of the 
Portuguese economy, and who 
find the milb often obstructed 
by recurrent statistical in- 
accuracies or by simple with- 
holding of information by tbe 
relevant authorities. 

The case has embarrassed the 
Bank, and delighted 0 Diario 
and its backers. That the matter 
may get no further than this was 
suggested today by a comment 
from a rather . bored banking 
executive, who said: “Am 1 
worried'.' Why. . I don't even 
buy n Diario— that's subsidising 
the Communist Party, isn’t it 7 ” 

• ■ Polish trade deficit with West cut 

raise spending 

on defence 

By Charles Batchelor 

HOLLAND WILL increase 
defence spending over the nest- 
four years to bring it into line 
with the NATO target of a 3 per 
cent real rise in expenditure. 
Mr. Willem Scholten, the Defence 
Minister, told parliament of -the 
plans in a note yesterday on the 
eve of the two-day Washington 
summit of NATO governments. 

This decision will lead to 
increased spending of around 
FIs. 150m (S66mj a year, in the 
period 1979 to 1982. above the 
previous Centre-Left Govern- 
ment's plan to increase spending 
by an average 2.3 per cent, a 
year. The Dutcb defence budget 
for the current year is F!s.9.5bn 
($4J2bn) though this may' be 
modified in a budget amendment 
which is expected to be 
annuonced in the next week or 

The Centre-Right cabinet is 
drawing up a programme of 
spending curbs totalling 
but the Prime Minister, Mr. 
Andreas van Agt, said recently 
that he' hopes to exempt defence 
from any reductions. 

Mr. van Agt, Mr. Scholten and 
the Dutch Foreign Minister, Dr. 
Christoph van der Klaauw, are 
in Washington to attend the , 
NATO conference. 

The decision to raise defence 
spending underlines Dutch 
solidarity with its NATO part- 
ners, a Defence Ministry spokes-; 
man in The Hague said. 

No detailed plans have been] 
prepared as to how the extra 
money will be spent but a 
decision is expected soon on 
successors for obsolescent 
Neptune marine reconnaissance 
aircraft. Holland is also under 
pressure to station a second army 
brigade in West Germany.- - •• 


POLAND'S trade deficit with 
Western industrial countries 
halved last year to Slbn. accord- 
ing io the German Institute of 
Economic Research in West 
Berlin, in its latest report on tbe 
Polish economy. 

In recent years. Poland has 
been second only to the Soviet 
Union within Comecon in its 
trade deficit with the West. 

The institute notes that 
Poland released fewer relevant 
statistics last year on its trade 
with the Westi but that nn the 
basis of OECD statistics there 
was a 12 per cent drop in 
imports from Western industrial 
countries, and a 7 per cent rise 
in exports to them. 

Swedish refusal 
of S. Africa cuts 

By John Walker 


ELEVEN major Swedish indus- 
trial companies are firmly 
opposed to cutting back or dis- 
continuing their operations in 
South Africa, according to a 
government - appointed inves- 
tigator whose findings have been 
presented to Parliament. 

The companies concerned in- 
clude Alfa Laval, Alvetiius In- 
dust rier. ASEA, Atlas Copco. 
ESAB. Fagerstas. Saia Inter- 
national, Sandvik. Skega. SKF 
and Tetra Pak International. 

The companies say that cut- 
backs would burl Sweden's ex- 
port market in South Africa and 
would affect employment ai 
home, but would not hurt the 
Sjptitb '.African* economy. . - i 

Poland is aimioz at reducins 
its overall trade deficit from Sbn 
Foreign exchange zlotys, last year 
to 6bn foreign exchange zlotys 
this year tone foreign exchange 
zloty equals 0.301 U.S. cents), tbe 
institute says. 

Polish exports are to increase 
by 10 per cent and imports by 
4 per cent. Tbe overall trade 
deficit is to be cut by one 
quarter, and with non-socialist 
countries by one third. 

Last vear Poland's 11.5 per 
cent increase in exports was 
mainly a result of the rapid 
16.8 per cent rise in shipments 
to the Soviet Union and the 12.2 
per cent increase in shipments 

BERLIN. May 30. 

to the other Comecon countries. 
Imports from the Soviet Union 
also rose sharply by 20 per cent 
because of higher prices for 
Soviet energy and raw materials. 

The institute noles lhat as in 
previous years agriculture was 
the main trouble spot in 
Poland's economic performance 
Iasi year. Gross agricultural 
production expanded by only 0.8 
per cent compared with the 5.3 
per cent planned. 

The poor harvesl. partly as a 
result of had weather and also 
because nf continuing equip- 
ment and fertiliser shortages, 
means lhat in 1977-78 Poland has j 
.to import 15m tonnes of grain. ; 

Norway deficit Danish payments 
‘will decline’ prospect gloomy 

OSLO, May 30. 

THE NORWEGIAN balance of 
payments deficit on the current 
account ' will fall lo about 
Kr 19bn (£L92bn) this year 
from Kr 26bn (£2.61hnj in 1977, 
Mr. Knut Getz Wold, director 
of the Norwegian Central 
Bank, said. 

Mr. Getz Wold said here 
that the balance of payments 
should be back in surplus in 
the 1980s. 

Nothing had happened to 
change the Norwegian Govern- 
ment's decision earlier Ibis 
year to remain in Ihe European 
joint currency float, he said. 
The Government hopes lo see 
the float exlrnded beyond 
current members, he added. 
Renter ' 

By Hilary Barnes 1 

COPENHAGEN. May 30. ! 

DENMARK'S current balance of. 
payments deficit will not improve : 
this year despite the Govern- 
ment's. hopes, according lo a ' 
report issued by the joint chair- ■ 
man of the independent 
Economic Advisory Council. 

They also say there will be a 
rise in unemployment from about 

165.000 (7.7 per cent) in 1977 to 

185.000 this year and 200.000 
next year. This will arise mainly i 
as a result of an increase in the] 
labour force and nni Trent aj 
declining number of jnbs. ihe: 
report says. 

The report predicts that ! 
private consumption will rise by j 
slightly more than expected . by ; 
the Government . . 1 

BP ruling 

By A. H. Hermann, 

Legal Correspondent 
European Commission vhie 
condemned the behaviour s 
Holland during the 1973-74 n 
crisis of three British Fetroleur 
subsidiaries should be declare 
void and ihe Commission shout 
be ordered lo pay the' costs n 
j the appeal, according to. a 
,'npininn presented to the. Eun 
. pean Court in Luxembourg h 
1 Mr. Advocate General- J. I 
Warner last week t Mar 23 ir 

The opinion, which is pro ha hi 
unique in the completeness r, 

| the reversal nf a : Commissi" 

I ruling proposed in it. also cor 
I tains an important attempt 3 
distinguishing between gnverr 
mental regulatory functions 1 an 
obligations of major company 

in times of .scarcity- It deal 

vnith the Commission’s tcndenc 
io fill any gaps in such regi 
la lory activity by giving a wide 
meaning tn Article 86 of the EE- 
treaty. originally designe 
merely tn prohibit abuses r 
market power. 

The Commission's decisior 
challenged in the appeal pr< 
feeding-,. was addressed to thrr 
wholly owned Dulch subsidiary 
of BP. The Cum mission declare 
that, by reducing deliveries «• 
pci ml lo a particular customs 
more than to other customers a 
Mr* tinii* when the Nethertand 
were under an embargo impose 
by the Arab oil-producing cour 
tries, the three companies abuse 
| their dominant position - an 
infringed Article 86. Althouc 
no fine was imposed by tbe Con 
mission, which dropped simiri 
; proceeds ngs initiated again.- 
! other oil majors, ihe existence n 
tbe decision might serve as 
basis for an action in damace 
against BP in Dutch courts am 
for that reason. and also “t- 
have the stigma removed.”, tb 
three companies have asked t- 
have it set aside. 

BP argued that it had brokei 
i a contractual relationsbii 
with the particular customer si: 
months before the oil crisis am 
continued to supply him only t< 
bridge over the time durint 
which ihe customer prepared ti 
start importing crude oil. 

Mr. Warner's rejection of thi 
Commission's decision -was nr 
more general ground*. “Neithei 
il* 9 per eenl share nr the Dulcl 
market, nor the dependence n 
regular customers nn its supphe- 
during a period or scarcity, mad* 
BP “ market dominant.” he said 
It had to take into account cu« 
Corners' memories and treat 
timm fairly, otherwise it woulc 
j lose them once the crisis wa> 
1 over. 

Richard Elli 

International Property Consultants 

Financial Wednesday May 31 IMS 


Kay 31, 19 ?fi 

Ttn* advert isomani ipiMair. 
as a nutter pi rtcert pniy 

The Industrial Bank of Japan 
Finance Company N.V. 

Curacao, Netherlands Antilles 

DM 100,000,000 

5% Deutsche Mark Bonds of 1978/1984 

unconditionally and irrevocably guaranteed by 

The industrial Bank of Japan, Limited 

Tokyo, Japan 

Offering Price; S9>4«4 ... 

Interest: 51 pt». payable annually on January for aacn year 

Maturity: January 1,1984 

Listing: Frankfurt am Main ' 

Deutsche Bank' 


Berliner Handels- 
und Frankfurter Bank 

Credit Suisse White Wald 


Soci6t6 G6n6rale 

Morgan Stanley International 

Li ratted; 

S.G. Warburg & Co. Ltd. 

Algernons Bank Nederland N.V. 

Amhold and S. Bloichnwdec Inc. 

Bsnca del Gottardo 

Bank of America Intamational 

Bank fur Gameimwinschaft 

Banque Bruxelles Lambert SJL 
Banque G6n6rale du Luxembourg SA 
Banque Nationote da Pans 
Banqua Populaira Suisse S A Luxembourg 

Baring Brothers A Co, 


Bayarische Vanrinsbank 
Chase Manhattan 


Cred i ta n statt-Bankvareln 

CrMK Lyonnais 

DB Finance (Hongkong) 


Deutsche Grrozantralo 

- Deutsche Kommunalbank- 

DiDon, Read Overseas Corporation 

European Banking Company 


Fuji Intamational Finance 


Hambros Bank 


Hessische Landesbsnfc 

- Girozentrale - 

.IBJ Intamational 


Kidder. Peabody International 


Kradiatbank S A LuxembourgwOMO 

Lazard Brothers & Co. 


Manufacturers Hanover 

L -fl* ltd 

B. Metzler saeL Sohn & Co. 

Samuel Montagu & Co. 


New Japan Securfties Europe 

The Nippon Kangyo Kakumaru 
Securities Co.. Ltd. 

Ok a win Securities Co., Ltd. 


N M. Rothschild A Sons 
Sanyo Securities Co, Ltd. 
Skandmaviska Enskilda Bankan 
Sumilomo Finance International 
Tarvo Kobe Finance Hongkong 

L-.1 M 

Union Bank of Switzerland { Securities I 


Wako Securities Co, Ltd. 

WeatdeuTsehe Umdesbank 
Giroznn trail* 

In dustriebank von Japan (Deutschland) 



Atlantic Capital ' 


Banco Nazlonale del Lavoro 

Bank Julius Bear Intamational 


Bank Lau International Ud. 

Banque Tokyo 
Banqua da (TndocWne at da Suae 
Banqua do Neufliz* Schlumbergar, Mallet 
Banque de I'Union EurapAenne 

Bayariache Hypotheken-und Wachsal-Bank 

Barfiner Bank 

AtoanuanBacMt ■ 

Citicorp International Group 

CrMit Commercial de Franca • 

Da Web! Kangyo Bank Nederland N.V. 

Del brOck & Co. 

The Development 8ank of Singapore 


Dre adnar Bank 


Hist Boston (Europe) 

Goldman Sachs Intamational Corp. 

Handebbank N.W. lOvobaas) 


H9I1 Samuel & Co. 


The Industrial Bank of Japan 
(Luxembourg) SA 

KJainwort, Benson 

Kuhn Loeb Lehman Brothers Asia 

Lazard FrhrasetCia. 

Merck. Finch & Co. 

MKaublahi Bank (Europe) S A 
Morgan Grenfell A Co. 


The Nlkko Securities Co, (Europe) Ltd. 
Nomura Europe N.V. 

Sal. Oppenheimjr.&Cia: 


. Salomon Brothers International 

J. Henry Schroder Wqgg 4 Co. 


Smith Burney. Harris Upham & Co. ■ 

Svenskn Handalabanken * - 

Tokai Kyowa Morgan Grenfell 

Uns>M . . . ' • 

Vareins- und Weatbank 


MM. Warburg -Brinckmann. WIrtz A Co. 

Wood Gundy 


Amsterdam -Rotterdam Bank N.V 

Banca. Commercials Italians 

' Bancb Uzquijo HJspano Americano 

Lmud -- 

Bankers Trust International 


The Baltic of Tokyo (Holland) N.V. 

Banqua Frangatae du Commerce ExtAusur 
Banqua IrTtamationale ft Luxembourg SA - 
Banque da Paris ot des Pays -Bos 
Barclays Bank International 


Bayarische Lend as bank 

Cabsadea Dtphls at Consignations 


AfcPtna— BzchdH 

Crbdit Industrial at Commercial 
Daiwa Europe N.V. 

Dan norake Credrttnmk 


Douttdw GaMMMahafbbMdc 



First Chicago 

Limited - - . 

Groupamant de* Banquiets Priyts Genavois 

Georg Ha uck A Sohn 

IBJ Finance Company (Hongkong) 


Jarcfme Flaming A Company 


. Kredietbank N.V. 

Landesbank Rhoinland-Pfalz 

Uoyds Bank International 

Martin Lynch Intamational & Co. 

-Mitsui Financa Europe 


' MTBC & Schroder Bank S A 

Nippon European Bank SA 

Norddautsche Landaabank 

Orion Bank 


Rothschild Bank AG . 

Sanwa Bank (Underwriters) 


Schroder. Munchmeyer. Hen gat* Co. 
Sociata GAnerela da Banqua SA. 

Swiss Bank Corporation (Overseas) 


■Trinksua A Surfchardt 

J. VbntebaJ £ 'Co. - 

Ward lay 
Urn lad 

Yamafchf Intamational (Europe) 1 



shows need ; 
for loans 

By Joseph Mann 

CARACAS. May 30- 
of Finance, Sr. Luis Silva 
Lqoogo, has announced that 

the central government’;; 
budget for 1979 will be 
45Jbn dolivars (SlO.Bbn). 

. He stated this after the 
bndgel had been approved by 
the President and Cabinet. Tbe 
budget now goes to Congress 
for final approval. 

The 1979 spending plan, 
which retains nearly the same 
priorities which the adminis- 
tration has set since 1974, will 
consist or regular income 
amounting to about -$9.31an and 
some Sl-36bn In extraordinary 

This Indicates that the Vene- 
zuelan government will need 
to seek, loans, .principally from 
foreign hanks, of more than 
Slbn .next year. 

Education, public health and 
welfare programmes will con- 
tinue to receive the largest 
shares of the 1979 budget, and 

Tool orders and spending 
plans point to recovery 

* . -T . WASHINGTON, X«y 3d. 

BY JUREK MARTIN, US. EDITOR |aft cnniinurri rorporate tm- 

FIGURES RELEASED today.; year compared^ w 1Tt: certainty about the .future was 

showing con tinned strength in* quarter nf 19" „_ rlllM>n *. nr ,hc Ui-i unspent appropna- 
machine tool orders and an ■ Capital JJ-Jj money w tiens ruse by 8 per cent in the 

increase in corporate capiurautbortsations to ihe months, 

spending plans, demonstrate that Hhe future, a e cun □ tnvesl . BN ™ . 

the U.sfhas recovered from the first step in ft e th *L “ n dusir.» ll,t ' Administrahon has been 
first-quarter lag- io economic men t process. 1/ to ..riaimns in hoping lhat ar(us) ■ capital 
actiX - which reduced ePP“"’ r, !' l “, u s dc d scindinj this sear will in 

Machine tool order, m April Brst guarwr. , hp „al terns 

rose lo a record S380.8m. IS per I* 1 ® 13 (JJ, firsi throe sinnljr !" ' r°„„fh P ,y5° n„“j 

cent more than in March and ^^® lf . ID havP Heen 9 per year The 

51 per cent up on the equivalent i months would a survev 01 tbc manufacturing 

month last -year, according .to j ce 2' ihe sector- however. Is predicting a 

statistics compiled by the* Somewhat ra Pnrf su'cestinp 15 per cenl increase for 1978, 
National Machine Tool Builders' * Picture, howe^r. anri ^ ^ 

Association. • ■ ^ — — “ 

Very heavy orders from car __ __ • — «I AA 

model year changes were The GM to raise C‘dT price 

“ b e u, association's , BY OUR OWN CORRESPONDENT «» YORK; 30. 

survey also found strong demand 

anoth er ■ gd Ajo,!;; «« 

predicted brisk business, if not crea8 f s ^ n-iccered taking to iry to meet the admitus" 

S^rilj ?r1he Anri rete. lor lk S; t S,' aSSS “aUoo a target of cnfflng Jhe 

lh The 0 SS?ey 1 'a?o d - reported that ""'^“neT Scl^Mhe pr^foT^o%?re 

Jil^il^res. rates S*. . J -.*-' *-£*&*» 

aSid P greater 8 competition for selling Cheyette model. down ptJ . nses f 0r salaried enb 

loans, corporations were not This ixibe third price rise on ployees below last years totals, 
experiencing cash shortages. this car since the * , “ rl iz\i confirmed this morning 

Meanwhile, the Conference L97S model year last September. * lateat Chevette price 
Board, an independent research Althougdi the mo»e is primarily a tha ..(.Mniej with an Incwase 
organisation, said that its am- response to price increases on rise.^ ^ P model range at 
vass of the 1.000 largest manufac- rival foreign produced iar>. aero. . , „ — 

, — - --- — impact 

cent id the first quarter of this adtninistration's 

President Perez 

petroleum revenues, as usual, 
will supply tbe great bulk of 
all Treasury income. 

Sr. Luongo asserted that 
1979 central government 
spending will be more than 
$1.16bn below that proposed in 
the (978 budget. 

For 1977, the government 
approved an initial plan to 
spend S&33bn. which grew 
nearly to S12bn by the end 
of that year. This year, the 
(midget started out at SlOJMbu 
and, so far, baa swollen with 
additional credits of more 
than S2bo. These credits In- 
volve foreign loans made lo 
the Republic of Venezuela in 
order to finance part of its 
developmental programme. 

Tbe government, headed by 
President Carlos Andres 
Perez, Is now In the midst of 
an election year. A new 
President and Congress urtil be- 
chosen in December, and will 
take office fu March, 1979. 

While government expendi- 
tures have continued lo rise 
over the past few years, offi : 
dal revenues from petroleum 
bave mainly remained stable 
and have occasionally fallen. 

Brazilian April 
trade surplus 
below target 

By Diana Smith 

THE BRAZILIAN trade surplus 
in April of S12m continues an 
upward trend begun. in March 
with a small surplus of SLEIm. 

The accumulated trade 
deficit for tbe first four months 
of the year has now been 
reduced to S33L2m — compared 
with a deficit of S79m for the 
equivalent period of 1977. 

Manufactured exports con- 
tinue to perform reasonably 
well, but with the worst after- 
math of tbe long drought only 
line to make Its Imparl on 
agricultural exports Trom Jane 
•O September— the mala soya- 
exporting months — there is still 
no guarantee that Brazil can 
achieve a trade surplus for the 
whole year, as It hopes. 

According to the Finance 
Minister, Sr. Mario Simon sen, 
in. order lo balance the trade 
account for the whole year, an 
average monthly surplus of 
S4£m most be achieved In the 
next eight months. 

McGovern attacks ‘crisis’ policy 


SENATOR GEORGE McGOVERN acquired senatorial weight, ranks here that ° r - 
todai sharply attacked what he high -on a number of important ins S r p“ I< * 9 n . thfqSJjZ 

described as a foreign policy of committees in the chamber, genera My, identified * he J? * 
“crisis and confrontation " being including Foreign Relations, and Department uodor Mr. aucc 
pursued by Dr. Zbigniew has shiwn pragmatism on a auui- and Mr, Andrew Young, in* 
Brzezinaki. President Carter's tier df occasions, such as bis Ambassador at rne Uw. 
National Security Adviser. recent vote for the package of Brzezin&ki s free-wheel mg attack. 

The Senator, who lost the 1972 arms sales to the Middle East. nn the Soviet union in a weeF- 
presidential election to President He has generally supported end television interview 
Nixon, said in a speech that he the Carter Administration s appeared m sharp juxtaposition 
did not think other senior Foreign policies, especially over to the more muted approacn 
administration officials — includ- strategic aruis and Africa, but. adopted only a week narller oy 
ing Mr. Cvrus Vance, the Secre- as his speech made clear todaj, Mr. Young, and was interpretea 
tary of ‘State — shared Dr. dearly sees Dr. BrzezinskJ's in some quarters here .a®. 
Brzezinskl's attitudes, nor did hard-line positions as impedi- evidence that Mr. Carter had- 
they correspond to “the instinc- ment$ .to desirable • goals. given tfye National -Security: 
tive views “ of the President, in Nevertheless, there is a feeling Adviser his bead. 

so far as the importance of end- 
ing the arms race with the Soviet 
Union was concerned. 

“It would appear/’ Mr. Mc- 
Govern said, “that, as of the 
moment- we do not have a 
coherent foreign, policy, but a 
collection of conflicting views. I 
pray that in the contest for the 


Texas oil blast kills four 


NEW YORK. May 30. 

mind of the President calm and A LARGE oii-rcEning centre in others. 

common sense will prevail over Texas was rocked by a series of According to eye-witness re- 
the strategy of crisis and con- expobdons ear by today— causing ports, a series of some 10 explo- 
frontation.” the death of 'four people and sions ripped through installations 

His comments should be seen injuries to /seven others — and owned by Texas City Refining 
in the context of the increas- threatening i the operations of Company, a local independent 
lng speculation here over several targe, oil and chemical refiner, 

whether divisions inside the companies' there. By mid-day. Eventually, though, firemen 
Administration over policy to- appeared that firemen managed to contain the blaze 
wards the Soviet Union are more had brought the flames under within the Texas City refinery, 
apparent than real. control, and that the worst and Ihe threat to other buildings 

Senator McGovern, while still .danger had passed. -passed, 

a “ dove “ and a firm believer The disaster happened at 2 ain Although much of Texas City 
in a , strategic arms limitation at Texas City, the location of Refinery’s 80,000 barrels-per-day 
agreement, - is probably more several important oil and chemi- refining capacity was wiped out, 
representative now of tbe senior cal processing plants owned by the fire .spared a 50.000 b/d 
U.S. political establishment than • Amoco, • Monsanto. Union Car- extension* which is under con- 
he was six years ago. He has bide. Gulf Oil. Marathon Oil and struction.. 1 


Bustling reconstruction 



Max Factor presidentqnlts as 
profits decline: Optimism over 
long-term at Massey-Ferguson; 
Esselte wins control of Dymo — 
page 35. 

May 1978 • 


Ten-year fixed rate Euro-currency loan 
in an equivalent amount of 
nkr 100 million 


A/S Kongsberg Vapenfabrikk 
Kongsberg, Norway 

arranged and provided- by: 

Berliner Handeis- 
und Frankfurter Bank 


Deutsche Genossenschaftsbank 

' This adtvnhemcnt appears a? a maun: of record only 
April 1978 




US S 10,000,000 
Provided by 




.***;».; ^ 

TEN YEARS ago the riots set 
off by the assassination of Dr. 
Martin Lu'her King, the black 
leader.- left great ■ chunks' of 
Washington barren and burned 
out. Small shops, which ■ were 
hu the hardest, struggled to 
reopen Most of them failed. 
Many large businesses headed 
for the safety of the suburbs. 

The riot -blighted sections, and 
others that bad grown seedy and 
orime-ndden with age. seem 
finally lo be emerging from the 
ashes. Shopkeepers are doing 
business with a vtgou unparalipd 
since Dr. King’s death, and the 
capital is now m a buslhns 
period of reconstruction. 

Large portion* nf the city gnt 
a 1 facelift for the U.S hi- 
; centennial years ending in 1976. 
But new Government buildings 
and spruced up monuments did 
little to niter impoverished 
black neighbourhoods. Construc- 
{ tion. activity however, did -not 
slow down with the end of the 
bicentennial. A resurgence of 

housing and commercial build- 
ing has led to the biggest build- 
ing boom m downtown Washing- 
ton since World War Two. The 
construction of apartments, fiats 
for sale and private houses, is 
on the increase. Some 2.000- 
3.000 housing units are 
estimated in be going up 
annually. The chetto areas are 
being reclaimed as old homes 
are renovated and new houses 

Both are selling for sum* that 
would have staggered estate 
agents ten years ago. Washing- 
ton then was virtually an all- 
black citj- except for a wealthy 
white enclave in its northwest 
area. Invasion lay blacks buying 
or renting homes and the 
flight of whites to the suburbs 
were the current cliches. 

City officials are instead talking 
about " encroachment ** and ** dis- 
placement ” to describe the new 
trend of evicting poor black 
tenants from economically de- 
pressed neighbourhoods to make 
way for well-off whiles moving 
hack into town Blacks stilt 
amount to aboui TO per cent, of 
the population, as they rliri ten 
years ago. hut rhe white flubr 
trend u> definitely nn ihe reverse. 

Even more i«» itu» (joint. inan> 
uf the blacks arp weil-lo-dn. as 
are most of the returning whites. 
Planners say ihai Washington 
could well become the home nf 
the prosperous — with borh poor 
and m i fl dip-income blacks forced 
into new ghettos on the fringe 
or even outside: a newly- 
publtshed Ford Foundation Study 

shows that blacks are moving 
into the Washington suburbs at 
such g pace that they accounted 
for one-eighth of the. total in- 
crease of the number oL blacks 
living in U.S. suburbs. 

Commercial development in 
downtown Washington, is pro- 
ceeding rapidly as well. A lonq- 
dlspiissed scheme -for ' the re- 
development of ’ Pennsylvania 
Avenue, the ceremonial thorough- 
fare. will begin this year. Plans 
include a SlOOm. complex be- 
iween the White House and 
Cfin^rcs'ji which will encompass 
office buildings, open spaces, a 
I.WW-room hotel, and a recon- 
struction of the historic Willard 

A resurgence of housing 
and commercial build- 
ing has led to the 
biggest building boom 
in downtown Wash- 
ington since World 
War Two. 

Hotel near the. Treasury, and a 
spacious shopping . ptedncl. 

The bicentennial •'pushed along 
the ‘much delayed opening of 
Washington’s new Rapid Rail 
Transit System, which seems tn 
be getting over its initial 
cultiM. (t itas -contributed to a 
return to ihe babii of dowoiuwn 
shopping. ‘Pe'ople from the 
suburbs find that they can shop 
in the district without parkins 
and traffic delays — arriving there 
w the matter of minutes- Wood- 
ward and I-ofhrop, the largest 
downtown retailer, reports sales 
gains of more than 20 per cent, 
in their store’s lower level a* a 
result of the new underground 
which has a stop below the shop, 
its manaqement says that one oji 
of Four shoppers arrive by rail. 

Washington has always been a 
company town — the company 
betne the Federal Government 
which employed ns residents and 
ran its politics Although the 
Federal Government has given 
up directly conducting city affairs 
by crantinc limited hnmc rule in 
19T1. jts magnetic presence has 
attracted a growing number nf 
private firms seeking Government 

The increasing powers nf t^c 
Federal regulatory agencies and 
the presence o.f. Congress has 
attracted lobbyists, lawyers and 
consultants -In unprecedented 
numbers. An estimated 2,200 pro- 

fessional trade associations hay 
set up headquarters here, man 
of them moving beyond the cit 
into he Metropolitan Area, wbic 
officially embraces the norther: 
Virginia and nearby Marylan< 
suburbs Tn accomVuoriaie' th 
influx, new office building-; hav 
been built all over the area. Las 
year, in tbe capital alone, cor 
ftruction was begun of 2tn. squar 
feet of office space, a numbe 
which is expected to cootinue t 
nse this year and next. 

Sensing still greater oppor 
(unities, the Washington Boar* 
of Trade; (equivalent lo - 
Chamber .of Commerce) am 
Suburban Business Organisation 
are making concerted efforts V. 
attract new business — nations 
and international — and wltl 
fiome success. Businesses ari 
easily attracted by the increaslm 
affluence of the area- In spite o 
pockets of poverty, a tier tas 
average household income ii 
Washington, was $15,925 com 
pared with an average of S14.92I 
for til* JJ.S. at Urge. Averagi 

wSS!fhino» d ,a S*? e for entin 
Washington Metropolitan Area- 

was as much as S21.149. 

e J,o Ur v u . pmarket iepirtmen 

S55*“? c,m " n i ,arcus > Sak 

, Av 5 nue - Blnorainedale : s 
and Lord and Taylor— hav, 
opened new shops in the area ii 

feW r - vpars - Mercedes 
Benz has no fewer than five ser 
vicmq agencies. Computer com 
«&<*■« suppliers, and liqh 
manufaeiunng plants are fas 
moving into the area. Mobil Oi- 
ls m ovine its marketing and rr 
lining headquarters with 1 , 3 m 
fwm New York t- 
Fairfax County, Virginia in 1979 

At & recent seminar for inter 
natinnal business, held bv th! 
Washington Board of Trad* 
speakers pushed the city's attrac 
the presence of thi 
Federal Government, Dii 
moderate climate, easy access H 
three airports, rail «rvice. anl 
the port or Baltimore, a pro 

oF educational instltntions 
* he «»■»*» of life; theatre 

hX 5 ’ aiuseums eoncer 

M J he P reBfi nc» nf an inter 
national' community in Washing 
ion is a resource of enormous 
importance, according to Mr 
Henry Catto. Tornier White Houbc 
cnieF nf protoeni, now a busines* 
consultant. Mr. Catto .praisei 
the easy availability of Informa 
non from the embassies, and th« 
constant flow of world "leader* 
with the entourages who visit the 


Newtesue . 
May 31, 1978 

This advart a satnanr 

i m a matter of 



U.S.$ 125,000,000 


8 72 % U.S. Dollar Bearer Notes of 1978/1965 

unconditionally and irrevocably guaranteed by 


Deutsche Bank 


McLeod, Young, Weir International 


Wood Gundy Limited 

Union Bank of Switzerland (Securities) 


Salomon Brothers International Swis s Bank Corporation (Overseas) S. G. Warburg & Co. Ltdv- 

Lamied UnUWl i 

Algarmna Bank Nederland N.V. 

A. EL Annas & Co. 

Amex Bank 

Amsterdam- Rotterdam Bank N.V. 
Atlantic Capital 

Cotpo n twn 

Banes Commercials Italians 
Bank of America International 

Bank fOr Gameinwfrtschaft 


Andreoans Bank A/S 
Bache Halsay Stuart Shields 

Amhoid and S. Bletchroedar. Inc. 

Badan-WOrttemborBische Bank 

a » -- ! ■ . -r- 


Bank Maes & Hope NV 
Banqua Bruxelles Lambert 5.A. 
Banqua do rindochine at da Sues 
Banqua da Neuflim Schlumborgor, 

Bancs dal Gottardo 

Bank Julius Baer Inter na t i onal 

Bank Gutzwlllar, Kura, Bungenor 


Bank of Montreal 

Bastque Frdnpafea du Commerce ExfiAdeur 
Barique Internationale d Luxembourg 8 A. 
Banque do Paris at dee Pays- Bos 

■Banca Nazionale del Lavoro 

The Bank of Bennuda 

Bank Leu International Ltd. 

Banque Rothschild 
Barclays Bank International 


Banqua de TUnlon EuropAenne 

Baring Brothers & Co., 

The Bank of Nova Scotia 

Banque GAnfeato du Luxembourg SA 

Banque Natkmala de Paris 

Banque Populalre Suisse SA 

Banque Worms 

H. Albert de Bary * Co. N.V. 

Bayernche Hypotheken- und 

Bayerieche Landesbank 

Bayernche Vereinsb a nfc 

Bell. Gouinlock A Company 

Joh. Berenberg, Goealar ft Co. 

Berliner Handels- und Frankfurter Bank 

Bums Fry 

Berliner Bank 

Caissa dee DApAts et C on a lgn atkma 

Canadian Imperial Bank of Com m erce 

Cazenove A Co. 

Chase Manhattan 

Chemical Bank International 



Credit Commercial de Franca 
CrAdit Lyonnais 

Christiania Bank og Kradhfcassa 

Citicorp International Group 

Compagnie HnandAre 
de la Deutsche Bank AG 

County Bank 


CrAdit Industrie! d'Alsace et de Lorraine 
CrAdit du Nord i 

CrAdit Industrie! et Commercial 

Credit Suisse White WAld 

Credttenstalt- Bankverein 
Deutsche Girozentrale 
- Deutsche Kommunalbartk- 

Dominion Securities 




Dalwa Europe N.V. 

DG Bank 

Deutsche Geno— n adwi M benk 

Droadnar Bank 
Afctenp — e lb chaft 

Euromobiliare S,p,A. Milano 

Delbriack A Co. . 

Dillon, Read Overseas Corporat i on 

Drsxei Burnham Lambert 

European Banking Company 

First Boston (Europe) 

First Chicago 

Robert Fleming A Co. 

Gafina International 



Girozentrale und Bank 

der dstarreichiachAn Sparfcassan 


Groupement das Banqwera PrivAs 

Goldman Sachs International Corp. 

Lteited ■ 

Hessiacha Landesbank 
- Girozentr a le - 

HH1 Samuel A Co. 
Limited • 

E.F. Hutton A Co. N.V. 

Industriabank von Japan (Deutschland) 

btrtuto BancarioSan Paotarrfi Torino 


Kidder, Peabody International 

Kjdbenhevns Handefsbank 

Ktamyvort. Benson 


Kredietbank N.V. 

Kradietbonk 5. A. Luxembourgeoin 

Kuhn Loeb Lehman Brothers 

Landesbank Rhein lend -Pfalz 
- Girozentrale - 

Lszard Brothers A Cot, 

Lazard FrerosetCte 

Uoyds Bank International 

Manufacturers Hanover 

Marine Midland lid. 

Merck. Find A Co. 

Merrill Lynch International A Co. 

Merrill Lynch, Royal Securities 
United * 

B. MetzlerseeL SohnACo. 

Midland Doherty 

Samuel Montagu A Co. 

Morgan Grenfell A Co. 

The Nikko Securities Co.. (Europe) Ltd. 

Morgan Stanley International ’ 
Nomura Europe N.V. 

Nesbitt, Thomson 

Noiddeutsche Landesbank 

Den norske Creditbank 

Sal. Oppenheim jr. A Cm*. 

Orion Rank 

Paine, Webber, Jackson A Curtis 




Pierson, Heklring A Pierson N.V. 

W. C. PitfMd A Co. (London) 



Richardson Securities of Canada 

Rothschild Bank AG 

N. M. Rothschild A Sons 

Rowe A Pitmen. Hurst-Brown 

The Royal Bank of Canada 

J. Henry Schroder Wagg A Co. 

Singer A Fried lender 

Sfcandinavisfca Ehaklkta Banfcen 

Schroder, MOnchmeyer, Hengst A Co. 
N.V. Slavwtburg’e Bank 

Smith Barney, Harris Upham A Co. 


SocIAtA GAnArale 

SodAtA GAnArale de Banque SA 
Toronto Dominion Bank 

Strauss, Turnbull A Co. 
Trinkaus A Burfchardt 

Svanska He nd el a bankwn 
Venens- und Westbanfc 

J.Vontobel ACo. 

M. M. Warburg -Brinckmaim,Wirtz A Co. 


Weetdeutsche Landesbank 

Williams. Glyn A Co. 

Yamarchi International (Europe) 


Interim Report for the six months to 30 April 197S (unaudited) 


30 April 1978 31 October 1977 
£123,906,000 £113,674,000 


per Ordinary Stock Unit 


123. Ip 

Distribution of Assets 

Equities: United Kingdom 



United States 

33.0 1 ! 

28.- 0 

Far Ease 



Other Countries 

4.3 fl o 

4.4 ? o 

Total Equities 



Fixed Interest 3nd Cash 

11:9 s * 


' 6 months to 30 April 


AVAILABLE for Ordinary Stockholders 
AMOUNT absorbed by interim Dividend 
INTERIM DIVIDEND per Ordinary Stock unit 
payable 24th July 1978 to Stockholders 
registered 27th June 197S. 

£ I, PI. 000 










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Financial Times 
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giving details of 

on offer to the public. 

For further details 
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equitzicrt 1 - 

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Financial Times Wednesday May 31 1973. 


Sadat hints at possible new 
Middle East peace effort 


CAIRO, May 30. 

Hr. John Vorster 





By Quentin Peel 

THE WESTERN initiative far a 
settlement in Namibia (South 
West Africa) has come almost to 
a halt, and the Western negotia- 
tors are at a loss over how to 
regain the momentum of the 
talks. The current Southern 
African mission by Mr. Don 
McHenry, Deputy U.S. Ambassa- 
dor to the UN and chief 
negotiator, is seen bere as a 
desperate effort to buy enough 
time to get the exercise restarted. 

McHenry's visit to South 
Africa last week, however, seems 
to have infuriated the South 
African Government, and parti- 
cularly Mr. Pik Botha, the 
Foreign Minister. The U.S. envoy 
made a. particular point of stress- 
ing the disastrous political re- 
sults of South Africa's military 
raid on the bases of the South 
West Africa People's Organis- 
ation (SWAPO) in southern 
Angola. The raid, he said, was 
a “substantial'' cause of the 
current deadlock, and “far out 
of proportion to anything 
SWAPO has been doing." Mr. 
Botha retorted that Mr. 
McHenry's visit and speeches 
were “transparent attempts to 
place the blame- for a failure on 
South Africa’s shoulders.”' In 
future, he should restrict himself 
to the Western settlement propo- 
sals. he said. 

That the South African raid 
was the immediate cause of the 
stale.mate. precipitating the aban- 
donment of negotiations by Mr. 
Sam Nujoma. the SWAPO leader, 
is generally agreed on the -Wes- 
tern side. But they admit that 
the whole initiative was compli- 
cated by the opposition of signifi- 
cant elements both in SWAPO 
nnd in the South African/Govem- 
ment- td'attv compromise .settle- 
ment, .'which might lead to 
gpnninely oppit elections.- and 
hence to possible victory by the 
other side. 

For its part, the South African 
Government has followed up its 
acceptance of the Western pro- 
posals — in itself the most sig- 
nificant breakthrough so far — 
with a series of gestures which 
are seen as totally hostile to the 
spirit of the settlement. Thei 
timing of the military raid.! 
launched only days before Mr. I 
Nujoma was scheduled to givej 
his formal response to the Wes- 
tern proposals -in New York, 
could hardly have been worse. 
Earlier, on* the very day. Mr. 
■Tbhn Vnrsrer.' the South African , 
Prime Minister, announced bis 
acceptance of the proposals. 
Judge M. T. Steyn. the South 
African-appointed Administrator- 
General in the Namibian capital 
nf Windhoek, ordered the deten- 
tions of half the executive mem- 
bers of SWAPO inside the' 
country. • 

The latest South African 
threat by Mr. Vorster. it is under- 
stood. is to start the process of 
registering voters in the territory 
within a fortnight. From the 
South African side, this move is 
presented as '-“neutral.” and 
designed to maintain momentum 
towards the promised Independ- 
ence date of December 3L. . The 
Western negotiators, however, 
see it as exactly the sort of 
exercise in which Impartial UN 
observers must be involved to 
satisfy all sides that It is fair. 
A unilateral South African move 
is therefore seen as decidedly 

For his part, Mr. Nujoma has 
throughout the initiative been a 
difficult and uncooperative nego- 
tiator, according • to Western 
sources. However, he has-been 
under considerable pressure by 

bis “respectable” fnon-Cotn- 
munist) backers, especially in 
Africa, to compromise. “ It was 
very clear to Nujoma that he was 
being hammered by the front 
line states," according to one 
Western source. 

Essentially, four issues were 
still in dispute between 'Mr. 
Nujoma and the Western powers: 
the status of the port of Walvis 
Bay; the positioning of the 
nucleus of South African troops 
to remain In the territory during 
elections; who controlled the 
police force; and the relation- 
ship between the South African 
Administrator-General and the 
UN Special Representative. Of 
these issues, the status. of Walvis 
Bay was simply not considered 
by the Western proposals, while 
the control of the police and the 
relationship between the two 
“ rulers ’’ of the territory were 
left sufficiently, flexible to 
satisfy both sides. Only the tr.oop 
location was a major problem. 

“ Because of the South 
African raid, the location of 
troops is even more importaot 
than It was before," according 
to a Western source. The 
Western negotiators are hoping 
to persuade SWAPO and the 
front-line states that the ' raid 
only highlighted the importance 
nf having a buffer peace-keeping 
force from the UN as envisaged 
hy their proposals. But In the 
emotional wake of the raid — in 
whieta, according to SWAPO. the 
principal casualties were civilian 
—such an argument has little 

of Egypt hinted strongly today 
that he was considering some 
new dramatic Middle East peace 
move should his present efforts 
end in failure. 

Having chided foreign corres- 
pondents for their alleged 
dtsorted reporting of recent 
events within Egypt, Mr. Sadat 
recalled that similar doubts had 
been raised shortly before he 
launched major Initiatives such 
as the decision to eject Soviet 
military advisers in 1972. to 
launch the 1973 war and lo visit 
Jerusalem last Noveoiber, each 
time his critics had been proved 
wrong, said Mr. Sadat, and later 
added that he hoped there would 
be a' 44 surprise " on July 23. the 
anniversary of the 1952 Revolu- 

The Egyptian President, 
addressing his second news con- 
ference in eight days, said he 
would prefer that an Arab sum- 
mit conference should not be 
held within the next two months. 

"In those two mnnths we will 
reach a result— either the peac£ 
moni~*jtum will resume of R 
will prove to be failure.” 

However by this, the President 
did not appear to mean that he 
would abandon reace efforts, 
only that he would change his 
approach to the subject. My 
peace Initiative will never die 
and anyway today it belongs to 
the whole world, to every man 
and women who loves peace. 

Another kev Aate raised by 
Mr. Sadat was the expiry of the 
United Nations Emergency Force 
mandate , that occurs in. October. 
But it was not ju>t the presence 
oF United Nations troops in Sinai 
that was at stake, it was the 
whole second Ecypt-Israeli Dis- 
engagement Agreement, declared 
Mr. Sadat He insisted that a con- 
tinuation of the second Disen- 
gagement Agreement negotiated 
two years after the-1973 war, was 
“the big test.'* 

Meanwhile Mr. Sadat said that 
he was' waiting for the United 

States to become a full partner 
in the peace process and added 
that he was in almost daily con* 
tact with President Jimmy 

^By Emphasising that the UR. 
had still to become a full 
partner, Mr. Sadat clearly 
indicated ho was looking for 
further pressure from Washing- 
ton on the Israeli Government. 
There was “complete stagnation" 
in Israel and the peace initiative 
had reached “a stalemate of 
sorts." But Mr. Sadat added: 
“ Whenever ' there are new 
picments from the Israeli side, 
Egvut will be open-minded and 
open-hearted. We will recipro- 
cate any new elements they may 
Introduce.” .. 

Earlier Mr. Sadat had parti- 
cularly singled out the BBC and 
The Times of London for theU* 
reporting of Egyptian domestic 
affairs. He said that he was 
44 very sorry " about the attitude 
of The Times and accused the 
BBC of “ transmitting false 

Party list voting for Rhodesians 



A SYSTEM of proportional 
representation using party lists 
will be used in Rhodesia's first 
one-man. one-vote election this 
year, the transitional govern- 
ment announced tonight. 

The four-man Executive 
Council said that it had opted 
for this system to speed up the 
electoral process “ as it does not 
wish to depart from the faith 
expressed by all signatories to 
’the interna] agreement which 
provides for independence to be 
achieved by December 31. 197S." 

The Council said it was satis- 
fied that because of the time 
required to register voters and 
delimit constituencies, it would 
not be possible, using the West- 
minster constituency model, to 
hold elections until the latter 
part of 1979. 44 In view of the 
commitment to independence by 
December 31. 1978, the prospect 
of delaying the general election 

until the following year cannot 
be countenanced.” 

Tbe Council said it was "con- 
vinced” that by using the party 
list system it would be possible 
to hold a general election before 
the end of this year. 

The Council statement pointed 
oat that the proportional repre- 
sentation, party list system was 
used In France, West Germany 
and Israel. 

Under the system voters will 
cast their ballots for the party 
they wish to support and repre- 
sentation in the 100-seat Parlia- 
ment will then be determined 
by the proportion of votes cast 
for each party. 

The system will apply to the 
72 black spats in the assembly 
while the 20 ordinary white seats 
will be elected on the normal 
constituency basis. The method 
of selection for the eight 
“special” white scats has still 

to be decided. 

In a separate statement, the 
Council announced its accep- 
tance of a recommendation from 
the Ministerial Council for a 30- 
member Senate - (or Upper 
House) which will he made up 
of 10 chiefs (elected hv the 
Council of Tribal Chiefs). 10 
senators elected by the 28 white 
members of parliament and 10 
senators elected by tbe black 

The Senate will have delaying 
powers, being able to delay by 
up to six months legislation other 
than urgent Bills or money Bills 
and by up to 12 months any legis- 
lation which the Senate _ legal 
committee rules to be incon- 
sistent with tbe Declaration of 

The Senate will not have aoy 
veto or hiocking powers on legis- 
lation. . It will be able to initiate 
new laws. 

Experts struggle 
to quell 
Iran oil fire 

By Andrew Whitley 

TEHRAN. May 30. 

A FIRE in an oil well in south- 
west Iran is continuing to burn' 
out of control, a week after seven 
workers were killed by a a huge 
explosion. Efforts by Mr. “Red” 
Adair's team of oil-field fire- 
fighters from Texas to extinguish 
the blaze have so far failed. 

Two attempts have been made, 
yesterday and to-day, to reach 
.the uncontrolled jet of burning 
oil and gas at the heart of the 
fire. The team may well try 
again tonight taking advantage 
of the comparatively cooler 

The explosion, early last 
Thursday, came during the final 
stages of preparing well 126 to 
come on stream in a marginaf 
sector of the rich Maroun oilfield. 
Informed sources say heavy 
diesel oil was being pumped 
down the newly drilled well 
under considerable pressure 
when the well casing ruptured. 
Oil spurting back out of the well 
ignited, shooting smoke and 
flames 600 feet into the night 

Jobless rate 
in Japaa hits 
19-year peak 

By Charles Smith 

Extra flights 
for Zaire 

By Mark Webster 

TOKYO, May 30. 
JAPAN BAD a seasonally- 
adjusted unemployment rate of 
22 per/ cent in April, the 
highest for 19 years, the Prime 
Minister's office announced to- 
day. The number of people 
out of work- was 1.23m as 
against a total of 54.13m who 
were employed. -Unadjusted 
figures show an Improvement 
from the position in March, 
reflecting that school-leavers 
normally start work in April. 

In spite of the apparent 
drams of .a 19-year peak, the 
unemployment ratio as - such 
attracts relatively little atten- 
tion in Japan, partly because 
the ratio of unemployed to 
employed of just over 2 per 
cent is a fairly low one. What 
attracts more attention is the 
so-called 'lob offeMob seeker 
ratio, which remains un- - 
changed at 0J5 per cent, in 
AprlL In other words there 
were nearly twice as many 
people seeking . jobs during 
the month as there were 
vacancies to be filled. 

KINSHASA. May 30. ' 
Lubumbashi, tbe provincial 
capital nf the Shaba province of 
Zaire, iure being laid on for 
women and children who wish to 
leave, diplomats said bere today. 

The -flights, to he run by the 
Belgian airline Sabena, are to 
cope with the extra demand 
from Europeans who fear a 
rebel attack similar to that which 
devastated the mining town of 
KoJwezI recently. 

The arrangements are thought 
to be part of - a deal struck 
between the Belgian and Zairean 
governments that it the women 
and children were allowed to 
leave the men would stav behind 
and ensure tbe continued smooth 
running of -the major commercial 

Diplomats were anxious to 
point out that the extra flights 
did not amount to an evacuation. 
They said that all passengers 
would pay normal fares and thHt 
most of them were simply going 
borne early for bolidays. 


Foundations built on sand 


Pyramids Oasis project which 
was announced over the week-end 
is of profound economic and 
political significance in Egypt In 
many senses it represents a de- 
feat far President Anwar Sadat 
and his efforts to introduce more 
liberal economic as well as poli- 
tical policies. 

It was to have been .Egypt’s 
largest tourist project, costing 
some 5500m. Tt is described as a 
tourist residential resort, situated 
on 10,000 acres, 2 km away from 
the nearest of Giza's three world- 
famous pyramids— that of Mycer- 
nius. It was to provide accom- 
modation for up to 40,000 people 
in some 6,000 villas, 5,500 apart- 
ments and five hotels. 

. The Pyramids Oasis was being 
developed by the Egyptian 
Tourist Development Company 
(ETDC), a joint venture com- 
pany. in which the Egyptian 
Government, through the 
Egyptian General Organisation 
for Tourism and Hotels, ' held 
40 per cent participation. The 
rest was held by Southern 
Pacific Properties (Middle East), 
a subsidiary of the Hongkong- 
based company Southern Pacific 
Properties (SPPi. Under the 
preliminary agreement signed on 
September 14, 1975, the initial 
capital of the company was 
$3Am, to rise eventually to 
S17ra. As its share in capital 
participation the Egyptian 
Government provided the right 
of usufruct on the land. 

Before turning its attention 
to Egypt, SPP's main under- 
takings had been the develop- 
ment of a tourist site In Fiji and 
the acquisition of the Travelndge 
hotel chain which operates in 
Australia. New Zealand and Fiji, 
it was until recently quoted on 
both the London and Hnng 
Kong stock exchanges. The 
group’s share capital and 
reserves are put at over 857m. 

Tbe main shareholders in SPP 
include the Triad Group, headed 
by the Saudi entrepreneur Mr. 
Adrian Khashoggi, with 29 per 

cent; P & O. with 23 per cent; 
and Trust Houses Forte, with 
4 per cent. Major equity partici- 
pants in the subsidiary SPP 
f Middle East) Include the Saudi 
Princes Nawaf bin Abdel Aziz 
and his brother Fawaz, who 
between them hold 25 per cent 
Last week, dealings In SPP 
were suspended in Hong Kong 

A spokesman for SPP told the 
Financial Times yesterday that 
there wonid be meetings over 
the next fortnight in Cairo 
during which the position of 
the Egyptian Government 
would be crystallised. He 
added that SPP could not 
determine precisely the effect 
of the cancellation until the 
Egyptian Government’s plans 
had been presented and 
studied. “ SPP’s fundamental 
financial health,” he added, 
“Is not endangered by the 
prospects of cancellation.” 

because of negotiations over a 
bid for SPP by Triad. 

So far S7ra bas been spent 
developing the area's Infrastruc- 
ture. It has been alleged that 
a unique site is being defiled; 
that archaeological treasures 
would be lost for ever (denied 
by several archaeological authori- 
ties); that the Pyramids’ founda- 
tions would be threatened bv 
seepage from the lake in the 
middle of the tourist complex; 
that the history of SPP was at 
best doubtful; That the financing 
of the project was questionable; 
that ihe Egyptian people had not 
been consulted properly; and 
that this sort of prestige project 
represented the worst face of 
the " open door " economic policy' 
initiated by Mr. Sadat — particu- 
larly when there were so many 
other sectors of the economy 
crying out for investment 

Suspicions were aroused by 
such highly challenging state- 
ments asr “The shares of SPP are. 
traded an the London stock 

exchange. Such unique privilege 
is only granted to companies of 
tbe highest moral, legal and 
ethical standards. Naturally, all 
officers and directors of such 
public companies are people of 
flawless -commercial, ethical and 
financial background with com- 
pletely dear past records." . 

With SPP also stating that it is 
“ one of the largest corporations 
in the world — engaged exclu- 
sively in tourism — outside the 
U.S..” it was further grist to the 
critics' mill when they discovered 
in the company's 197b annual 
report that no dividend would be 
paid that year and that It was 
unlikely that earnings would 
improve significantly in the short 
term to provide an adequate 
return on shareholders' funds. 

The admitted problem with 
Mr. Sadat's ‘‘open door" economic 
policy is that it has failed to 
induce private foreign capital for 
Industrial investment but has 
helped to fuel a boom in real 
estate development, of which the 
Pyramids Oasis is a prime 
example. However the Govern- 
ment had argued that in this 
case it had cost the people of 
Egypt nothing, as the land on 
which the project was being built 
was contributed as its stake in 
the operating company. Not only 
that; the land was “only" being 
made available on a 99-year 
usufruct lease and would eventu- 
ally revert to the Government. 
Valuers chosen hy the Govern- 
ment put a price tag or $1.36m 
on ihe land, for which it received 
in return a 40 per cent stake in 
the operating company. 

So far about 400 plots have 
been sold. The average price per 
square metre for the plots is 
understood to be about 
E £28, of which the company has 
estimated EE22 will go towards 
the infrastructure. Critics of the 
scheme are busily doing their 
sums to try and reach a conclu- 
sion about the probable profit 
element that will accrue, and 
whether the .land, was provided 
at a knock-down price. 


Financial Times Wednesday May 31 1978 



Improved exports help cut 
EEC-Japan trade deficit 


THE APPARENT improvement 
in the trade balance between 
Japan and the EEC during the 
first four months of this year is 
n clear indication of success by 
European exporrers. but 
whether this is only temporary 
remains to be seen. 

The striking point about the 
Jupan-EEC trade figures t Japan's 
expons to the EEC up 16.9 per 
cent, imports up 37 per cent* is 
that they suggest an altogether 
different situation from that 
between Japan and the U.S. 
There, the surplus in Japan's 
favour continued to rise 
sleadily during the first four 
months of 197S, reaching an all- 
time peak in April. 

MITI officials profess to be 
mystified by ihis difference 
beyond suggesting that Euro- 
pean exporters may have been 
“ trying harder” than Americans 
during the past few months. 

Mure lo llie point. could he the 
relatively steep increase in 
European car exports to Japan 
during the past Tew months as 
against U.S. exports and some, 
rises in " non-tradilional " Euro- 
pean export items such as 
industrial diamonds (up 42 per 
cent to Y8.58bn> gold (up 84 
per cent to Y7.3bu) and, most 
improhihly. ships (up from zero 
to Y2^bn) — all during the first 
three months of 197S. 

Japanese officials who are 
convinced that the picture is 
really improving point to 
statistics which indicate a rise in 
the ratio of manufactured goods 
in Japan's total imports during 
the past few months 

The ratio was 21.5 per cent 
during the whole of 1977 but rose 
to 22.9 per cent in January and 
ihcn. by stages, to 26.6 per cent 
in Anri! — easily its highest level 
since It was drastically reduced 
in 1974 as a result of the 
quadrupling in value of Japan's 
crude oil imports. 

A point which would be agreed 
by both sides is that ihe trend 
towards a reduced Japanese 
surplus with the EEC wilt have 
to become much more marked 
before the problem can be 
regarded as approaching solution. 

EEC. sources calculate that, at 
present rates. Japan would run 
a surplus of around S4.1bn with 
the Community nn the basis of 
customs clearance figures — only 
slightly down from the 
■* unacceptable " $4.6bn level 

which was actually recorded In 
1977. E 

The adjustment of the 
imbalance <(ould be greatly 
helped by Japanese orders for 
EEC aircraft but it seems doubt- 
ful whether' these will come 
early enough ; to affect the trade 
figures /or 1877. 

What could help more is the 
anticipated impact on European 
exports of Japanese tariff cuts 

TOKYO, May 30. 

Introduced on March 1 fbut 
originally scheduled for intro- 
duction on April 1). 

Some European exporters (In- 
cluding Scotch wbisky exporters) 
appear to bave held back ship- 
ments early In the year while 
waiting for the tariff cuts to take 
effect. This could lead to a corres- 
ponding, or more than corres- 
ponding, rise in shipments later 
in the year. 


First our mojtths of 7978 compared with first four months of 1977 


Japanese exports 


W. Germany 

: Japanese imparts 
« % 
40Z8 (+38.9) 
: 647.7 ( +34.9) 
205.9 (+244) 
165.2 ( +23.6) 
1,744 JB (+37.1) 

6414 (+ 2.9) 
1,044.8 (+27J) 
329.4 ( + 15JI) 
147.1 (—16.9) 
3,1184 (+16.9) 



- 2384 (-28.4) 

- 397.2 ( + 164) 

- 1234 (+ 44) 

+ 1 8.2 (ika.) 

-14734 (- L5) 

Trading houses foresee 
national $10bn surplus 

trading houses predicted a trade 
surplus for the country in fiscal 
1978 (started on April 1) ranging 
from $10bn to $14bn, compared 
with a S5.5bn government 
estimate in January. Their pre- 
dictions, on a customs clearance 
basis, were released individually 
in their business outlooks for the 

The Japanese Government fore- 
cast a $13.5bn trade surplus on 
a payments basis and a S6bn 
current account surplus, based 
on its estimate of a S5.5bn trade 
surplus from customs clearances. 

All eight houses estimate 
exports f.o.b. higher than the 
Government’s S864bn. Their 
predictions range from SS9bn to 
S93bn. They are- Mitsubishi, 
Mitsui. Itob. Sumitomo. Nisssho- 
Iwai, Toyo Menka _ Kaisba, 
Kanematsu-Gosho, and Nichimen. 

All except Toyo Menka Kaisba 
predict that imports will be 
lower than the Government's 
SSlbn estimate. Their predic- 
tions range from $7Sbn to SSObn. 

AP-PJ adds: Export and import 
contracts in April at the 13 major 
trading houses declined from a 

TOKYO, May 30. 

year ago and from March, the 
Japan Trade Council said on 
Tuesday. April export contracts 
fell 0.4 per cent from a year 
earlier and 53.5 per cent from 
March when a sharp increase 
was recorded to Y709.7bn. 

Import contracts outpaced 
export deals in April but slumped 
26.5 per cent from a year earlier 
and 7.2 per cent- from March to 
Y801.6bn, the sixth consecutive 
monthly decline. In March, 
export contracts had risen a 
healthy 144 per cent from a 
year ago and 69.5 per cent from 
February to Y1427bn. while 
import contracts fell 35.2 per 
cent from a year earlier' but 
were up 52.9 per cent from 
February to total YS63.2bn. 

The council, which represents 
trading houses accounting for 
about three-fifths of Japanese 
trade, said figures reflected the 
high levels of April last year. 
Export contracts, it noted, are 
at their lowest since the Y583£bn 
marked in last October. 

It is the first time imports 
have outpaced exports, by 
Y91.9bn. since October 1977. 
when the import contract surplus 
was Y3074bn. 

Uganda to 
route goods 
via Aden 

By John WorraJI 

NAIROBI, May 30, 
UGANDA, AFTER a visit to 
Kampala by a three-man South 
Yemen delegation, has agreed to 
route its trade through Aden. 

Uganda Radio said President 
Idj Amin expected Uganda Air- 
lines and a Uganda forwarding 
company to open offices there. 
Uganda planned to fly its exports 
to Aden for shipping. 

Almost all Uganda’s exports 
go by rail or road to the Kenyan 
port of Mombasa. Trade experts 
here say that flying' goods to 
Aden for shipping onwards 
would add enormously to the 
cost of exporting Ugandan pro- 
duce. But it seems possible that 
President Amin hopes by such 
methods to lessen Uganda's 
dependence on Kenya for -its 
trade lifeline to the outside 

Chile ports for 
sale or rent 

By Robert Lindley 

THE BIG increase in Chilean 
exports in the past three years 
has created a bottleneck in the 
country's ports and has con- 
vinced the Pinochet regime that 
the ports should be sold or 
rented because of the. huge 
investments needed to expand 

Luis Eberhard, Director of 
the State Ports Combine 
(EMPORCHI), making that 
anouncement. did not indicate 
whether foreign companies 
would be permitted to bid. but 
the indication is that because of 
the large Investment needed, 
they will. 

Chile's foreign trade last year 
reached S5bn. and with the 
continuing increase, especially in 
fruit exports, which are expected 
to double in the next three years, 
Chilean ports are becoming less 
and less capable of handling the 
traffic. The country's grape 
exports alone in 1977 totalled 
6m crates, and the grape growers 
of one region alone, Aconcagua, 
have announced that its grape 
exporta in 1980 will reach 12m 
crates. i 

Japanese ‘agreement’ on Asahan financing 


JAPAN HAS agreed in principle 
to pay most of the additional 
multi million dollar increase in 
costs for the Asahan hydro- 
power and aluminium project, a 
senior Indonesian Minister has 
claimed here. 

Mr. A. R. Suhud, the Minister 
for Industry, said that inflation 
had raised the cost of the 
venture — the largest single 
foreign investment project in 
Indonesia and one of the largest 
In South East Asia — by “ roughly 
S700m from the original esti- 
mate io 1974 of S812m." Un- 
official estimates have put the 
cost escalation at over Slbn. 

Indonesia also faces a cost 
increase of about Slbn for tbe 
Krakatau steel plant in West 
Java — a project originated by 
the State oil concern Pertamina 
but taken over by the Govern- 
ment Negotiations are taking 
place with Spain to provide 15-20 
credits for machinery of German 

In an interview Mr. Suhud left 
little doubt that there was still 
a sharp -“division of opinion 
between Indonesia and Japan, as 
well as between the Japanese 

Government and- the Japanese 
companies involved in the 
Asahan project over sharing the 
burden of the additional finance. 
Japan's dilemma is that the pro- 
ject has become a‘ symbol of its 
political commitment to Sou-tb 
East Asia. But the Japanese are 
worried about its profitability if 
they have to obtain the bauxite 
— as President .Suharto wants 
them to — from the nearby 
Indonesian island of Bintan. 

Mr. Suhud said that Japan’s 
initial proposal that the increase 
should be met through a loan 
raised by the Government of 
Indonesia had been rejected. 

His own suggestion was a back- 
to-back financing arrangement 
under which Indonesia would 
borrow funds on 15-20 year terms 
from Japan for immediate lend- 
ing to the Japanese partners. 
Repayments would be guaranteed 
by tbe foreign exchange receipts 
from the sales of the output of 
the aluminium smelter. Mr. 
Suhud emphasised that tbe sug- 
gestion was a personal one. He 
is however the minister respon- 
sible for the project. 

Tbe Indonesian Government 

only has a 10 per cent stake in 
the project The rest of the 
equity is held by Nippon Asahan 
Aluminium, a consortium led by 
Japan’s Overseas Economic Co- 
operation Fund (OECF) and 12 
Japanese, companies, including 
Sumitomo Chemical Industries, 
Showa Denko and Mitsui Alu- 
minium. Under the original 
financing arrangements 70 per 
cent of tbe funds were provided 
by loans from Japanese Govern- 
ment agencies and commercial 

Mr. Suhud made it clear that 
the equity capital would not be 
much increased so that the debt 
equity ratio would rise to about 

Tbe project, located io 
Northern Sumatra, involves the 
construction of a major hydro- 
electric plant, an aluminium 
smelter and other substantial 
infrastructure work. Tbe financ- 
ing of the cost escalation was one 
of the major items taken up by 
Mr. Toshio Komoto, Japan's 
Minister for International Trade 
and Industry when he was here 
three weeks ago and is expected 
to be high on tbe agenda of Ihe 
forthcoming visit of Mr. Sunao 

JAKARTA, May 30. 

Sunodo. the Foreign Minister. 

A further serious complication 
for Japan is that Indonesia seems 
determined to persist with a 
related but controversial project 
on the Island of Bintan near 
Singapore. According to Mr. 
Suhud, Indonesia intends to go 
ahead with a 5400m bauxite 
mining and alumina smelting 
venture on Bintan to provide 
feedstock for tbe Asahan plant. 
Other ministers, however, who 
believe that there are more 
urgent priorities requiring large 
foreign exchange expenditures, 
claim that the final cost and 
technical studies for Bintan will 
not be completed until the end 
of September. 

Mr. Suhud said that the 
Government had taken over the 
project and wuuld be looking to 
foreign loans tu finance two- 
thirds of the cost. He conceded 
that the Japanese had ” not been 
too enthusiastic " about it and 
that it was “ commercially a bit 
weak." Indonesia might have to 
accept a lower return on it but 
Mr. Suhud implied that this was 
worthwhile in the context or 
development and au integrated 
aluminium industry. 

Slowdown in exports puts India into deficit 


ANNUAL TRADE figures for 
1977-78, just released by India's 
Commerce Ministry, show that 
the previous year's nominal sur 
plus of Rs 720m (roughly 
£40.7m 1 has changed into a fairly 
large deficit of Rs 5Rlbn. The 
sharp reversal is due to the slow 
growth rate of exports by just 
5.4 per cent compared to the 
19. per cent rise in imports. 

Exports are estimated at 
Rs 52. 52 bn and imports at 
Rs 58.33 bn. These are still pro- 
visional, but final figures are 
expected by Ihe Commerce 
Ministry to confirm the deficit. 

The main change in the 
pattern of trade is a sharp in 
crease in imports of oil and 
petroleum products to about 
30m tonnes, a 6 per cent in- 
crease that is expected to stabi- 
lise in view of growing produc- 
tion in the country. 

The slow growth In exports is 
officially explained by factors 

such as the growing trend to- 
wards protectionism in developed 
countries, tbe continued reces- 
sionary trend in the world 
economy, fluctuations in the 
value of the dollar and the 
Indian Government’s policy of 
restraining export of certain 
items of mass consumption. 

Because of protectionism or 
recession in countries belonging 
to the Organisation for Economic 
Co-operation and Development 
(OECD), India's exports were 
affected in several important 
sectors. The fall in steel exports 
in 1977-78 is estimated at about 
Rs lbn, partly because of the 
rise in internal demand. The 
loss in cotton textiles and leather 
products is estimated at Rs 500m. 

Commerce Ministry officials 
are pessimistic about Indian 
exports .and say they will not 
rise more than 4 per cent in 
1978-79. Taken with the figures 
just announced, that means a 

sharp reversal in trends as 
shown by tbe comparison with 

1975- 76 when exports soared by 
27 per cent. 

The trade gap is likely to 
widen appreciably during the 
current year because of the 
Government's new liberal policy 
on imports of capital goods and 
essential consumer goods. 

During 1977-78, the Govern- 
ment regulated exports of mass 
consumption goods to cater to 
the domestic market and check 
the rise in prices. That has 
helped to keep inflation to 
5.1 per cent in 1977-78. To con- 
tain rising domestic prices of tea, 
the Government imposed export 
duty, withdrew assistance for 
duties and encouraged producers 
to bring more tea to auction 
centres to increase overall 
availability. Exports were 
limited to 225m kilograms com- 
pared with 242m kilograms in 

1976- 77. ■■ 

NEW DELHI, May 30. 

Trends in export earnings 

have, however, been encouraging 
in tea, coffee and spices, mainly 
because of the rise in unit 
values. Engineering goods, 
chemicals and allied products 
and jute manufactures also 
improved, while the increase in 
gems and jewellery was spectacu- 

It is estimated that the value 
of tea exports increased by 
88 per cent from Rs 2.95bn lo 
Rs 5.56bn, coffee by 102 per cent 
from Rs l.lbn to Rs 2.3bn and 
spices by 82 per cenl from 
Ks 760m to Rs I.6Sbn. 

Exports of engineering goods 
are estimated to have increased 
by 12 io 13 per cent from 
Rs 5.54bn to Rs 6^5bn, chemical 
and allied produces increased bv 
17 per cent from Ra 1.31 bn to 
Rs 1.54bn and gems and jewel- 
lery by about 50 per cent from 
Rs 2.67bn to Rs 4.26bn. 

China may buy Y70bn power plants 

CHINA HAS offered io buy from 
Japan three thermal power plants 
at an estimated total cost of about 
Y70hn, according lo Japanese 
marhincry industry sources. 

The required plants would be 
nm* producing 300,000 kilowatts 
,?nd twn for 150,000 kilowatt*, 
designed lo use steaming coal as 

fuel. They are fexpected lo be 
built near Shanghal in connection 
wiih an integrated (Steel mill at 
Baoshan. which China hopes to 
begin operating from 1980 with 
an annual capacity ofi 6ui’ tonnes 
of crude steel. 

Ijjsi week Nippon Steel signed 
a formal contract for co-opera- 
tion in building the steel plant 

TOKYO, May 30. 
Three Japanese electrical machi- 
nery manufacturers are studying 
the Chinese offer and are ex 
pected to start technical consults 
tions on the proposed power 
plants next mouth. 

They are Hitachi, 
bara Electric and 
Heavy industries. 


Tokyo Shi 

Daf truck 
line opened 
in Ghana 

By Charles Batchelor 

i \F TRUCKS, the Dutch enm- 
iicvciui vehicle maker, has 
la ru’d building buses and trucks 
n Ghana as Ihe first step in a 
i vi*-. ; ear plan to strengthen its 
losilmn in the international 
chicle markOL Aulopartis Ltd.. 
^ Accra, has begun assembly 
nd ba> rapacity Tor two trucks a 

Toe Dutch company has pro- 
i, led technical and. initially. 
i:in.i , *rment assistance to Auto- 
i.i rts. tmt has nn financial stake, 
■rod union is for the Ghanaian 
i at first, hut exports to 

i her \W* t African countries are 
vpeeted later. Assembly in 
has been started heeause 
f i be difficulty or gelling import 
1 1 -nice* 

Daf trucks lias been an ex- 
i„rier «»f knucked-dnwn bus 
r»r assembly in Morocco 
„! suiue years, blit the move 
.1 Ghana is the first part of its 
vp.m-iiMi programme. an- 
lowHivd in .March. It is study- 
rig Hie potential for assembly in 
ilier countries, notably Nigeria. 

It has Toreign npcralions in 
•i.rtueal. Spam. Belgium and 
ndonesia. and exports to many 
■i her cmmiries. 

\P to open in U.S. 

kui.tiniilivr Products, which prn- 
lures clutches, brakes and 
leering components, is opening 
f.iclorv in Detroit in July to 
;idvan1.i>:c «'f the new 
chjtic specifications needed to 
nr, -r stringent petrol economy 
■•gula turns, a Financial Times 
r porter writes. 

Textile machinery sales 
show substantial drop 


WORLD SALES of textile manu- 
facturing equipment fell sharply 
last year, ihe International 
Federation of Cotton and Allied 
Textile Industries said In a 
report published yesterday. 
Lower investment in Europe and 
North America accounted for 
the fall, which, however, did not 
retted rising investment in 
countries of the Eastern Bloc, 
Asia and Oceania. 

Fewer spindles. open-end 
rotors and shuttle-looms were 
shipped Iasi >e:«r compared with 
1976. Total sales fell by twn- 

Only shuttle-left* loom ship- 
ments were higher than in 1976. 
with 19.UIH1 units sold compared 
with JS.U90 in 1976, almost half 
iif all linims sold. Britain was 
the fourth biggest single market, 
with wial sales of 900 shuttle- 
less looms. 

Nearly half ihe 1.8m ring 
spindles snld were shipped to 
Asia and Oceania. South Korea 
was the biggest single market. 

with a total intake of 385,000 

The biggest drop in sales of 
ring spindles since the federa- 
tion started collecting data in 
1974 occurred in European 
countries outside the EEC and 
Organisation for Economic Co- 
operation and Development 
(OECD). Sales dropped from 
610.000 in 1974 to 132,000 last 

Europe as a whole took half 
the 232,000 rotor sales last year, 
but the largest single market 
was the USSR, which took a 
quarter of world sales. Sales 
to Hungary and Romania more 
than trebled during the period, 
when sales elsewhere fell by 
almost 60 per cent. 

Sales of shuttle looms were 
dominated by interest from 
South Korea, which bought 2.900 
uf the 20.000 looms shipped. 

International Cotton Industry 
Statistic* Supplement, volume 4. 
1977. the International Fedetv. 
t ion of Cotton and Allied TerfihH 
Industries. Postfach 2S9. Zurich 
S039. Switzerland. 

New exhibition body proposed 


A NEW promotional organisa- 
tion for the UK exhibition indus- 
try is to be proposed by the 
exhibition industry working party 
at a meeting in London today. 

The aim or the new body, 
tentatively called the British 
Exhibition Promotion Council, 
would be to "bring together and 
further the interests of all sides 
of the industry through a new 
organisation to be concerned 

with the effectiveness, status and 
reputation- of the industry as a 

Its main fnnetion would be to 
increase the awareness of the 
value of exhibitions in the 
marketing mix and to increase 
publicly overseas. It would also 
be involved in research, training 
and standards and be com- 
plementary to existing organisa- 


is pf pm&’d io announce the election of 


as a Vice President 
and her appointment as Manager 
o£ zts subsidiary 


a First Class 







Les Dilutes Culinaires de la Voiture 


Cdte de Botu[R6tie 

WUM HD»ST FUS-tlt Of Mi* 

Escalopes de Veau, Sauce Marsala 

Filets de Sole Duglerf 

Supreme de VolaiUe Indonesicnne 

Pommes de Terre Rissalees 
o um kmsiid PfilAiocs 

Salade Composee 

Legumes du Jardin au Beurre 

m/TTtAUS GMDCH vttt’AftES 


Plateau de Frontages 

M AascrruBii Of otosca 

Fruits RafraSchls 



Pastilles de Menthe 

AFTEADimm* UnlS 

.Cafe au Cognac ou Cointreau Cafe Am&ricam ou D&cafeini 

corid urn, co'f.’REAU cotttc o* sw 


T £A 

Aglance at one of our menus is enough 
to make anyone want to visit the States. 

It s'eyeh been said that the only 
reason were not in the Food Guides 
is because we couldn't supply a fixed 

Imagine stepping upstairs into the 

Book atable nows 

luxury of a First Class Dining Room. 

And sitting down to a superb meal 
at your own table. 

Beef carved before your eyes. Dover 
Sole prepared in our own kitchens. 

And all served with a selection of 
fine wines. 

There’s just one thing to remember. 
Pan Arris people are the only ones to offer 
First Class passengers such an exclusive 

So make sure you book a table early. 
Because the world’s most experienced air- 
line is also the world’s most hospitable. 

Ban Aniis People. Their experience makes the difference. 

Financial Times Wednesday .May 31 1978 


for some 
at Ford 

By Christopher Parkes 

WORKERS AT the Ford tractor 
factory. Basildon. Essex, may 
have an extended summer break 
this year. The annual three-week 
holiday shutdown at the works 
ts likely to be lengthened con- 

Mr. Geoffrey Tiplady, Ford 

tractor managing director, said 
yesterday that a decision would 
be made in about a week's time. 
He was hoping that the total 
summer closure would not be as 
prolonged as the sis weeks pre- 
dicted in the industry. 

Some shnrt-time working had 
been expected because of a 10 
per cent dmp in domestic trac- 
tor sales rh is year. The Basildon 
factory accounts for more than a 
third of Ford's world tractor 

S3 1 OS. 

Mr. Tiplady said home sales in 
the first three months of the 
year were 12.800. compared with 
14.200 last year. Dealers had 
ample stocks and held large num- 
bers of second-hand tractors. 

The fall in Ford sales on the 
U.K. market tallies with the 
decline recorded by the British 
farm machinery industry as a 

The Agricultural Engineers' 
Association said yesterday that 
registrations of tractors in the 
first quarter of the year were 
12 per cent down. Production — 
beanne in mind the 11-week 
stoppage which hit Massey- 
Fcrguson last year — was 3 per 
cent higher. 

Export aid 

Tractor sales over the year 
probably would be 15 per cent 
lower than in 1977 — an excep- 
tional year in which fanners had 
plenty oF profits from arable 
crops to spend. Deliveries of 
combine harvesters were down 
mnrp than 10 per cent. 

Mr. John Cnlman. president of 
the association, asked for better 
Government aid with exports. 
Grants and subsidies for 
machinery makers to show their 
products at overseas shows were 
r.«n as useful as the Government 
might believe. 

The money might be belter 
spent on helping British com- 
panies show- their machinery in 
aetinn at foreign field demon- 

(2 A week ago. Massey-Ferguson 
announced a 20 per cent cut in 
the 4.700 workers employed at its 
two Coventry tractor factories 
because of a continuing slump in 
demand for tractors. 

CBI opposes 
statutory role 
for engineers 

By Our Industrial Correspondent 
members of the Confederation of 
British Industry is opposed to 
s-atiitory registration of 
png-neers. says the CBI in its 
evidence to the Finniston Com- 
mittee of Inquitry into the 
enzinrenng profession. 

A Government agency that has 
m legal nr financial responsi- 
bility is unlikely tn give greater 
r-'uranee of competence than 
the Present svslem. the con- 
federation insists. 

Anri “ enhancing the profes- 
•mnal status nf engineers is not 
r.n appropriate purpose fur 
sHi'Mrv powers. Profes- 
‘••'nnlisni is better enhanrefl hv 
n.-' wh’rJi earn General 
p:il-''C res perl.** 

The CBI adds that a minority 
view w held which suggests that 
ind'Jstrv has an interest in 
ensuring that the oualifieatinns 
f ir registration of engineers are 
-nlntaincd at a consistently hiuh 

The confederation suggests 
that *he quality of engineering 
graduates is a matter "of niamr 
p.-ieern " More school -I pavers 
ne-'d to be attracted tn engim-cr- 
;o.; and tn manufacturing indus- 
ir\ tn ensure improvements in 

Navy blast destroys 
wreck of Eleni V 

The Eleni V is exploded. 


THE oil-laden wreck of the sea from its fractured tanks. and sink' it had been abandoned 
Greek tanker Eleni V was The Greek and French author!- because of in tematloritf con ven- 
destroyed yesterday morning ties have promised investigations tions- banning- dumpings 
when a team of Royal Navy into the cause of the collision. The Department argues that it 
explosive experts blew up the which happened just outside was nectary to stabilise the 
vessel's remains. British waters in an area where aru j evaluate options for its 

Last night a fleet of spraying there are no major shipping dispose before calling^ In. Smit 
vessels was tackling two 300-yard separation lanes. Tak. The Department also pleads 

oil slicks which appeared on the However, the focus of atten- “bad luck M ' working in'Tadverse 
surface after the wreck went tion in Britain has been the way weather conditions and points 
down. in which the Department of ou t that the stem section of the 

The Department of Trade said Trade has handled its statutory vessel was successfully towed to 
efforts to disperse the slicks duty to deal with pollution more Rotterdam shortly after the 
appeared to be succeeding and than one mile from the coast- collision. 

it was hoped the oil would not line. Smit Tak was OQ a £ianno-a- 

reach the coast 26 miles away. Local people have felt tncreas- d contract to beach the 
Yesterday flfternoon Mr. Stan- ing frustration as they have wre - k ed bow section and numb 
ley Clinton Davis. Trade Mini- watched s “ c cessiv e salvage plans ^lldear. However, thl. pi™ 
ster. rejected suggestions that fail and be abandoned. Mean- was abandoned on Saturday after 
the Department had been slow while, beaches from Winterton suitable beaching site could 
to act over the pollution threat, in the north to Kent in The south £9 Deactunfi coulfl 

He also said that, the total cost have been polluted. „ olf tho N ,_, 

Department of. Trade officials- Overall., the Navy. RAF and 

nf the operation, excluding the — — .. . A 

cost of shore anti-pollution admit that the dispersants used three salvage and towing corn- 
measures. will be about £2ra. to control the pollution, while panies using dozens of vessels 
For 24 days the how of the relatively mild, have been only And divers have been involved in 
tanker, which was sliced in two 30 per cent effective. l “ e operation. t 

by a French merchant ship in it was not until 12 days after Who will pay the final bill <s 
thick fog eight miles off the the collision that Smit Tak. the not clear because it will be up 
Norfolk coast, had presented a Dutch salvage experts, were to the Department „ apd local 
pollution threat to East Anglia's called in. By then much of the authorities to file . claims - under 
holiday beaches. ■ About 3XK)n pollution had already occurred the existing - international 
tons of heavy fuel oil are he- and initial plans to tow the and industry-based compensation 
lieved to have leaked into the tanker wreck into the Atlantic schemes. 

Fears for north-west’s economy 


CONCERN that the position of by industry per capita in the plant to be built at St Helens 
the north-west's economy in area whit* was below that of any by Pilkington, a £19.5m. 'expan- 
relation to other parts of the other region in the latest avail- sion of chemical facilities at 
country could be worsening is able statistics. Whitehaven. Cumbria. by 

expressed in the latest report of Government spending in the Albright and Wilson, a £15m 
the area's industrial development area bad fallen relative, to. other chloride plant being built by 

rftrortnr re?ions - BP .chemicals at Sandbach 

_-J5 ’ ■ Th * most i“POrtMt: : pn>jects a £Mm sugar chemicals plafct 
says that in 1968 the north-wesj t0 come to the area OT er the to be- built hy Tate and Lyle- 

of past year were a £70m. glass at Liverpool.'' 1 . 

accounted for 12.8 per cent 
national unemployment, and by 
1973 this had risen to 17 per cent. 
Now it stood at about 15 per cent. 

At the same time, the region's 
share of job vacancies had fallen 
from about 12 per cent in the 
early 60s to just 8.5 per cent in 
early 197&. The region's ratio 
of 16.5 unemployed for each 
notified vacancy In January was 
higher than in any other part of 
the country. 

Mr. Chnpman also mentions 
the low fixed capital formation 

for beer 


THE STEADY .revival in 
demand for beer continued in 
April so that by the end of the 

first quarter, production w as t 
per cent ahead of. the same 
period last year. 

“But is Is still too early to 
say If the beer market has 
recovered from last year’s set- 
back,” the . Brewers Society 
said last night. 

Beer output last year fell by 
1 per cent, the first time since 
1969 that it had failed to make 

The brewers have been look- 
ing for an increase in pro- 
duction of between 1 and 2 per 
cent this year. 

“ If the fine weather con- 
tinues through the summer, 
we are confident that last year's 
output will be comfortably' 
exceeded,” they added. 

In the early part of this year, 
beer sales had to contend with 
wetter-than-usnal weather and 
price Increases on some pro- 
ducts which began to take 
effect in February. 

In April, production reached 
-£20( n balk barrels (934m 
pints), up 2.3 per cent on the 
same month last year. 

- The brewers said the In- 
crease had reflected extra 
demand by the retail trade In 
readiness for the May Day 
bank holiday, together with 
April this year having an 
additional working day at the 
breweries compared with a 
year ago. 

Output for the first quarter 
came to just under 9.5m 
barrels (2.74bn pints). 

Lonrho textile 
plant closure 
will cost 246 jobs 


LONRHO TEXTILES it to close regional organiser of ibi TriM; 
its Felling factory at Gateshead port and ■ General Workers 
with the loss of 246 jobs. Union wid earlier talks with the 

On Friday * the company, company had not included 
which is part of the Lonrho possible redundancies.^ 
international tiding group. P Short-time would protably con- 
announced a total of. 400 redun- tinue in. certain area* atthe 
dancies at the former Brentford end of the production process, 
Nylons factories at Cramlington the company satn. 
and Felling, but .said nothing Last- year, the first full year 
about any plant closure. LonrhoT ran the Brentford 

The Felling works, which Nylons, factories, pre-tax profits 
manufactured dressing gowns were £3:i4m. half the previous 
and night dresses, will close at year’s results, in spile a j*j?*?L ve 
the end of August The company rise in textile salcs trora £42.5Sm 
blamed the depressed state of in 1976 to last years £61.04m. 
the textile market, cheap foreign Lonrho bought the Brentford 
imports and its own over- Nylons business for £9.Sm in 
capacity. 1976, when the company 

Some of the Felling production, described its acquisition as a 
will be transferred to the Cram- “ recovery prospect” 
lington factory in North umber- Mr Basi j W esL finance 

land. But there Lonrho Textiles direetor 0 f Lonrho said last night 
has also issued 9®-day redun- closure an d the redund- 

dancy notices, to 170 workers. ancieg ^ ere pan of a “ restructur- 
. Cramlington workers have . operat j 011 » The company has 
been on a three-day week for “J “ Lit bv a switch in 
three months, but yesterday the ®**n all-nvlon garments 

company said and household textiles to poly- 

was no tong e L b world ne was cotton goods. It would now con- 
K ShlfSSSSL^SM central on .nanufaemrin, and 
Yesterday Mr. Alan Dixon, selling polycotton products. 

Liverpool Port 
has £4 6m 
trading profit 

By Ian Hargreaves, Shipping 

THE Port- of Liverpool suffered 
a sharp drop in business last 
year, but managed a trading 
profit of £4.6m— only the second 
surplus since 1971. 

Sir Arthur Peterson, chairman 
of the Mersey Dock and Harbour 
Board, warns in his annual 
report that prospects for 1978 are 
less good than for last year, 
partly because of the Investment 
backlog , caused/by fiv^ years of 
h**irvy- losses between* 1970 and 1 

Co-ops in call to unite 
against private traders 


ntn ttr ates at the Co-op The vote would again be on the 
annual' congress yesterday passed one-vote one-s^ety basw. and it 
a resolution calling on the move- was m this kind of - ballot that 
ment to unite if the face of the plan lapsed last year 
growing opposition from pn- The question of whether the 
vale ly run traders. co-operative movement should 

The vote followed a day of unite to fight the opposition was 
debate which showed just how seen as a separate issue, 
far from being a united move- The London society put tor- 
ment the Co-op is at present. ward a proposal asking congress 
Delegates representing the to recognise the need tor the 
country's 206 retail societies movement to. -mobilise its full 
revived the question of whether national strength and to speak 
the two governing bodies — the and act as a united movement in 
Co-operative Union and the the present adverse trading 
Co-operative Wholesale Society-— climate.” 

should be merged. It called upon the Central 

By a slim majority, they sup- Executive to approach the Cws 
ported a proposal calling on the with a view to “rationalising. 
Central Executive to put forward concerting and formulating 
new plans tor setting up a single national policies appropriate to 
national federation to co-ordinate meet: the challenge of the con- 
the movement’s activities. temporary trading scene.” 

The proposal was passed on a Putting forward the proposal, 
card vote, and the small majority a representative or the London 
suggests that some of the biggest society said .that a great many 
societies are less enthusiastic societies were becoming con- 
about the idea than a year ago. cerned at the pressures on profits. 

It seems unlikely that a single .The full resources of the move- 
federation will be. created in the medt should be pledged in a con- 
forseeable future,, a 8 such a move certed . effort to. strengthen 
would need the approyel of all nrovejt By Retail societies to fight 
the retail societies. back. 1 

to allay 

By Anthony Moreton. 

Regional Affairs Editor 

an important concession to both 
tbe Shetland and Orkney islands 
in an attempt to keep them with- 
in a devolved Scotland. 

Mr. Bruce Millan. Scottish 
Secretary, wrote to the two coun- 
cils yesterday, stating that the 
Government intended to intro- 
duce into the Scotland Bill, when 
in comes back to the Commons 
from the Lords, a clause which 
would enable him to adjudicate 
on matters where a dispute had 
arisen between the islands and a 
Scottish Assembly in Edinburgh. 

He intends to discuss this with 
the Shetiands Islands' officials 
when he visits Lerwick on June 
5 and with their counterparts in 
Orkney the following day. 

Before he arrives in the islands 
the officials are to meet in Ler> 
wick to-morrow to align their 
policy and adopt a common front 
on the question of their status. 

Mr. Millan has been forced to 
make this concession because of 
the strength of feeling towards 
devolution shown in a poll org- 
anised in the Shetiands by the 
council in March. 


Nine out of ten peopled polled 
said they wanted a special com- 
mission set up to safeguard their 
position if Scotland as a whole 
voted for devolution. 

The Government is concerned 
that both Shetland and Orkney 
will vote against devolution. Mr. 
Millan is under strong pressure 
in Edinburgh to prevent, in 
effect, the islands from breaking 

aW3 y 

It had been expected that Mr. 
Millan would visit the islands 
immediately after Easter to allaj 
their fears but the trip had to be 
postponed. Since then, the Lords 
have inflicted considerable dam- 
age on the Scotland Bill, although 
not in way that seriously affects 
the position of the islands. 

Mr. Millan has told -the Islands 
in his letter that he believes their 
future lies in integration with 

• Irvine Development Corpora- 
tion today launches a £5.2m pro- 
gramme to provide two advance 
factories and more than 350 




By Stuart Alexander 
The Spring Bark Holiday con- 
tinued for thousands yesterday 
as the rush for the holiday 
resort;; moved into Its fourth day. 

Schools' half-term, annual shut- 
downs by several large industrial 
employers, and an extra day off 
being taken hy many Govern- 
ment employees “ for the 


NEB decides to play for high stakes 


THE National Enterprise Board, neis, Plessey, Ferranti and the strategy of incentives carefully world force in one jump. - only two dozen engineeril b the JSm 

playing for high stakes, knows General Electric Company have worked out by tbe Department of The board’s plan is based on whole world are ■ really £ooa at and m anagers °° 

- “ - - - he a detailed study prepared for this type of design, and most of form t^e nucleus of the new com- 

the risk it is taking in deciding concentrated on custom-designed Industry in co-operation with the 

an Officials'- and the industry repre- the West German Government engineers, some of them ex- «H> L™ 0 ® 1 * 

sentatives faceda majbr dilemum Neither the board, nor the patriate - Brttw* to work; for it, The posstoiTity of a joint ven- 

' anrimi^XcTor pr«J co«u£nts was y^erdaV pr£ and it seems no reason *bjt gj wlth one of the «t£UM 

dm-tK whirh i-nuld ar-hievp hi«»h nared to disclose manv details top team backed .with enough U.S. semi-conductor companies 

to reduce the numher of people 
Eoinc hack to work and to swell 
the numbers still in the main 
holiday areas. 

But there were no signs of 
mass absenteeism and a spokes- 
man tor the Cunfederation of 
Rntish Industry said. '•We have 
hrard nothing on ihe absentee 
side. Quite a few companies arc 
taking a week's holiday." 

It has decided to challenge military ' equipment are 
the major U.S. and Japanese example of this category. 

companies head-on in the highly „ r _ _ „ ... 

competitive world market For \^OinpoiieiliS ducts which could achieve high pared to disclose many details *°P. , .v. ^ 

standard mass-produced com- Until recently the UK’s enough sales to make profits for of the plan. However, success capit^ s^^ not jump straight apj^ars to have been rejected, 
purer memories. general strategy has been to try British companies would also or failure clearly hinges on into the 64k market _ «.i2n t2 l! 

The venture has little chance to expand cautiously from this attract competition from U.S. or development of a product „,This in effect is what Nippon *“■* JJ®- f e i[. 

of success unless it can penetrate small corner of the "specials *' multinational companies which c ryptl cal y called the 64k RAM. Electric, of Japan, has succeeded a °i,- Tne r, ® nt 

the U.S. market which represents market to produce '* industry already have the advantage of Io plain man’s language that in doing. lini in t r 

more than half of the total world standard ” circuits which are large volume production and. Is a postage stamp size.d piece Onfimiufir -thZ ' ' structure 

demand for semi-conductors. designed tor special applications could therefore cut prices. of silicon oo which microscopic v|/uiuiaiiL U - * * * 

If it succeeds, a new NEB sub- but are nevertheless required in The department's answer was transistors have been etched to Details of the. Enterprise ^ P n ^ 

sidiary company would become large, volume. first to suggest selective' aid to provide 64,000 separate memory Board's new subsidiary are " 

a major exporter and perhaps Components for the television the UK and some multinational cells. expected to be announced .in 

Europe's largest centre for mass- or telecom mumcations industry companies like'Muilard and ITT Only a few years Ago a silicon about three months. The board Jlhiw , 

produced semi-conductors. come into this middle category. f 0r developing the intermediate “chip” containing 1,000 cells is already looking round tor E* * ajrcmia^ ana 

The business is risky hecause Tho market for each circuit' products with a speciaL appli- was something of a marvel. This sites and hopes to be in full JJ? «inr nrStnrS i-T- Trf « -.tihIpS 

the mass-productinn of semi- though . quite large, would prob- cation but prospects of a reason- year 4,000-element memories are production by about 1980. 

conductors provides very little ably be restricted to a relatively ably large market being mass-produced and 16,000 After a build-up- period of 

middle ground between success small group of customers- Secondly it suggested incen- element chips are beginning to three t«T four years, some opti- tn 

and failure. The enterprise board, on the rives to a .’mulnational company appear. mis tic forecasts put the annua* have^ontflanked th* GEr which 

Very large sales are required other hand, has gone for a much which wanted to develop mass- The industry is generally turnover at about £100m a year Z* alter- 

to cover overheads and develop- wider market of worldwide produced world standard cir- agreed that the next stage is a on a total investment of £50m. narivp noii« of huvinB i S 

ment costs for standard circuits, standards, particularly memory cuits In tbe UK jump to 64.000 ceUs per chip However, the Enterprise Board’s American semi-eondurtor com. 

Companies which fail to achieve circuits which van fit into almost This strategy is still being which will be achieved in the initial plans are for Investment mv mibh FtirehlM w nm. 
these lance volumes nearly all any computer made anywhere in worked out and may indeed next two or three years. of £20m to £30m. «n » tik 

face large tosses. th 2 n . worl ?- fto forward in parallel to the Even at 16.000 elements per The scheme was approved bv for^standard ?irraito as a ioint 

For this reason the three UK- The board's decision cuts enterprise board's more ambi- chip, the design becomes extra- the Cabinet at the end of lasVventu^ with a tli? lender hvp 
owned companies in the bust- straight across a' .two-pronged tous plans to become a major ordinarily complicated. Perhaps week. Detailed negotiations are Intel • ,,w 

So that we can smoothyour way 

road rollers with hydraulic transmission are used. 

Road rollers with Unde hydraulics. Progressive speed 
control with fluctuation free direction change (forward- 
reverse-forward) are especially needed for road rollers. 

Unde hydraulics provide this with built in cam control for 
stepless speed variation matching ground conditions; 
with low wearing power drive components for reliability 
and with module construction for easier servicing. 

Unde hydraulics are built into all types of machines where 
Increasing costs make higher productivity, efficiency and 
long life mandatory requirements. For example: - excavators 
and forklift trucks; cranes, combine harvesters, and 
bulldozers too. in fact wherever economical solutions and 
peak performances are required, you will find Unde 
hydraulics - power with control. 

But Unde are more than just important manufacturers In 
high pressure hydraulic systems. The Unde group are in 
the forefront of the capital goods and services sectors, 
with a comprehensive and forward looking range of 
services for meeting high quality requirements. Leading 
the way in development and technology Unde have a 
turnover DM 2,100 millions, with a workforce of 19.000. 

Unde AG, Wiesbaden 
Represented by; 

Unde Hydraulics Ltd. 

Nuffield Way 
Abingdon Oxon 

Telephone (0235) 2232a Telex 837477 

Death by boredom can take 
several forms. 

It can strike you as you grapple with 
a term in a life assurance brochure. 

It can happen as you fight your way 
through the policy jargon. , . 

Even a straightforward hatter with a 
salesman can be fatal. ^ 

Relief, however, is at hand. 

After 138 years in the business we’ve 
decided to make things simple. 

In plain and entertaining English 
we’ve produced an illustrated 96 page > 
book called “Safety in Nimibers.” 

It tells you everything you / • 

should ever have to know about the 
complicated business of life assurance. 

It will be published during July by 
Hutchinsons, and will be available through 
leading booksellers at £1.95. 

At present we have a limited 
number of advance copies at a special 
pre-publication price of £1.00. It will be 

our pleasure to send you one. 

Just send £1.00 (which includes 
packing and postage) together with your 
name and address to Provident Mutual 
(Marketing Department) , at the address 
below. In the meantime, if there’s anything 
else we can do to help, call us. 

We won’t call you. 

You’ll find us approachable, friendly, 
and remarkably unstuffy. 


We talk your language. 

Provident Mutual Life Assurance Association • Founded 1840. 

" i 

financial Times Wednesday May A1 197S 


to license 
work out 


Heathrow passenger 
terminal warning 



_ . „ . . , . ... travellers lo London will have 

By Lynton McUin, Industrial Staff ■ io ^ elsewhere— perhaps to the 

PROPOSALS ip license asbestos; Continent— if the proposed 

insulation companies will bo; fourth passenger terminal at 
announced J»y Ihe Government ! Heathrow Airport Is rejected, 
advisory committee on asbestos i This warning was given 
tomorrow. The move is an . yesterday by Mr.^onxjaa i Payne, 
attemnt to slop pour working: chairman of the British Airports 
practices among some companies.: Authority, on ihc eve of todays 
Two reports from the commit- 1 opening of the public planning 
tec will be considered by the ; Inquiry mto the fourth terminal. 
Health and Safetv Commission ! al County Ha II. Westminster, 
before recommendations arc'. T h f P«f«» 

to Mr Albert Booth ,s i° ler t ded to wler for another 

E^mment Secret^ for S- ' «»*>■ pass^gers a year, raising 
Eniplojmcni *tcreiar>. lor pos , Wn!lfltrnu ,. B tv Frnm th® 

Mblc public:! turn as a consulta 

tin* document. 

The committee is expected in 
concentrate its iicensing pro* 

Heathrow's capacity from the 
present 30m. lo about 3Sm. pas- 
sengers a year hv the mid-1980s. 

So strong have been the 
envirnmental and nther objec- 



a cold . 

By David Fiihlock, Science Editor 

ernmenfs decision tn cancel 
Maplm. has needed to be. under- 
taken concurrently with their i 
remaining in use. | 

“l regard it of paramount' 
importance thar the necessary J the PROBLEMS of private 
steps are taken to avoid a > inventors in Britaimare likely to 
repetition of last summer's con- f be intensified by the new Euro- 
ditions experienced ai Heathrow • pean pa tent taws which come 
in Terminals Twa and Three.; j fl i 0 force tomorrow, says a re- 
which on occasions resulted in por t published m the magazine 
passengers arriving at the an - ' I New Scientist. 

port and being subject to severe , *nie‘ new EEC law and the 
and chaotic congestion.**. 'patent Co-operation Treaty are 

If Terminal Four were-not pro- , intended to make foreign patent- 

pusals on companies removing | ,j ons lf) thl , proposal, however, 
tuiigmg .rvui old buildings th ^ tVie Department of ihe 
insula ted with asbestos. A ban Environment has blocked the 
on spraying material con lain me airports authority’s plans so that 
asbcsln» is also to he suggested. , lbc p ub |j t . inquiry can be held. 

Other recommendations in a The inquiry, under Mr. lain 
-rrnnd report also out on Thurs- midewell. QC i>. likely to take 
day will call for improvement* | several months to hear ail the 
in techniques for measuring and | evidence — it will not sit during 
monitoring asbestos m air in i August— so that it is not 
factories where the material i* ' expected to complete its work 
used. .until September or October. 

Limitations on the use of! There will be further delay 

asbestos for thermal and aeoustiei while the Government considers nF nasuenser service, 
insulation will be proposed, ii$ decision, so that a final c nni « traffi o wnuii 

vided as soon as possible it would 
mean **-a' return to simitar con- 
ditions in 19S4 and 'beyond, 
because sufficient alternative 
capacity at other London, airports 
cannot be provided in time to 
meet the forecasr demand. 

** Since the cancellation nf 

ing easier, but it _ will still be 
expensive. Moreover, a new 
British Patents Act which also 
comes into effect tomorrow will 
make it more costly for inven- 
tors to obtain a British patent, 
says the report. 

“Trivial" inventions will no 

Mr. Norman Payne, chair* 
man of the British Airports 
Authority, who warned that 
Heathrow may lose passen- 
gers to the Continent. 

Mapiin. Terminal Four bag been [ longer be patentable. 30d those 
central to the authority's .policy j which are granted patents 
for meeting South-East demand-, should be stronger — changes 
irrespective uf the longer-term j which industry itself will wel* 
options that may have been avail- coin e. 

able. j But the survey says that the 

“It is the opinion of the : advantages are less obvious for 
authority that the provision of' the small inventor, for whom a 
Terminal Four at Heathrow as patent hnwever weak, may he 
soon as possible is essential to 'an essential step in negotiating 
the proper provision of an I the sale of hfs idea, 
efficient airport system to serve | After surveying the fate of 

where substitute* exist. 

But the use of asbestos for fire 
protection and in cement will 
atiil be permitted. 

Some traffic would divert to the London and South-East areajgs patented inventions on which 

Plea to end 



... w Some potential passengers fourtn terminal at Heauirou is b v their nature, unlikely tn be 

essential. in the airports wou]d not travel by air. and in progress, the authority says it t h e subject of legally" strong 

authority * view, if Heathrow was poss ibtv not at all. will not pursue plans to develop pa i H nt protection, 

to be able to meet prospective Mr. Payne stressed that in its Stansted to cope with 4m passen- since the National Research 

demand. evidence, the airports authority sere a year against the- present Development Corporation — the 

, Hc added that the conse- WO uid be saying “very clearly 300.000. Government agency empowered 

j qtiences which would result if that we will not be able to meet While the authority believes! ro supoort inventors — often 
, neither Heathrow nor the London anticipated London airports’ these is a long-term role, for a Injects ideas as “unpatentable.” 
[area airports . generally^ were passenger demand In 1985 unless busier Stansted. it considers that i the survey concludes that a new 

Financial Times Reporter 

capable of handling the demand Terminal Four is built. it would be wrong to embark on 

could he summarised as follows: “The current modification pro- the oecessary planning while the 
0 Prelum of demand would gramme to increase the capacities Heathrow terminal issue remains 

force traffic at Heathrow and of existing passenger terminals unsettled, and there is the'.Hkeli- 

elsewhere beyond assessed at Heathrow, which has been hood of a similar inquiry into anv 

..... capacity levels, with a cunse- forced on the authority as a possible second terminal at 

M ENT is being asked lo assist ! dUcnl deterioration m the level direct consequence of the Gov- Gatwick. 

efforts tu resolve differences I ' ' 1 ' 

between two local authorities | 
over the future control and] 
development of Manchester's 
Central Station site. j 

The 23-acre site has changed' 
hands privately several limes 
during the 10 years it has sluud 
vacant. ] 

The Department has indicated! 
its readiness to make official*! 
available if requested. I 

Councillor Norman Morri? 




Britain links with U.S. 
on jet noise research 

THE UK aerospace industry is colder surrounding air, thus re- 

col labora tin? with McDonnell dicing turbulence and noise. 

Douslas of the US on research Th* suppressor has. beeen 
uougias ot tne u.s.-on researen d f oed by McDonnell Douglas 

into making jet engines quieter. afle * five years research. Earlier 
leader of Manchester Cin Cmm- This summer, a British Aero- tests with scale models conducted 

cil. said vesterdav that 'lie had |BRIT1SH ALWAYS is consider apace HS-125 executive jet will by Rolls-Royce showed promising 
now given instnictions for a ,in " expanding shuttle flights start test flights from the Royal results leading to the decision to 
formal approach to be made ot » ' brt ween Glasgow and London Aircraft Establishment Bedford, undertake flight teats, 
behalf of the cstv ] ibis summer, with a new early- of a new noise suppressor. In the long-term, it is hoped 

This would ask the Depart- • ,immms for thu benefit of This is in the form of an attach- the device can be fitted to air- 
mem to invite representative* „‘| i businessmen seeking early con- nient to the exhaust of a jet en- liner jet engines to help reduce 
his authority and Greater ‘Man- 1 ner, ‘ on * in London - gine which improves the mixing their noise, especially at take-off; 

Chester County Council to join ^ The shuttle — a no -reservations. ^ ie ex ^ au *t. gas with the and landing- 
with them in discussions on the: walk-nn. wa I k-o it service which 

situation begaln in January. 197?— has 1 ' 

The city has had long-standing 1 carried more than -m passengers 
ambitions to acquire the site and I and is regarded by the airline as 
develop it as a major cun- . one of its most successful tnnova- 
ferencc and exhibition centre, lions. 

The present clash follows the! Mr It E Winvurd Scottish 

the^nrespn 0f «"np 5 r 0t '\t l0n r wi,h 'manager. has told' Glasgow air- 
Rrthin«.n m °" er * c ’ eor W e : purt consultative roramittee that 
.ipmn^itinn * r. * lIanc * iester While he could not be specific 
demolition specialist. ' about the Startine date for addi- 

tional shuttle flights, they were 
1 under consideration. -The flights 

Chevron oil 
only modest 

By Ray Dafter, 

Energy Correspondent . 

TESTS ON Chevron -Petroleum's 
latest' North Sea oil ' iliactrvery 
have produced only modest flow 
rates. More exploration will be 
required to determine whether 
or not the find is a commercial 

Chevron said yesterday that 
the well drilled on block 2/10, 
about 80 miles east of the 'Shet- 
land* had been plugged and 

The well, drilled by the semi- 
submersible rig Norjarl. tested 
oil flows in two zones. One 
flowed at a rate of 2^25.ban-eLs 

The success of the Glasgow! The survey shows that many questioned did not know.! 3 day through a lj-inch choke 
{shuttle led to ilw introduction ! companies are unaware how Virtually - all the rest under- 1 w htle the other reached a flow of 
; of similar operations to Edin-iniuch perks are costing them, estimated the amount. j 896 b/d through a U-fnch choke. 

r> i . burgh and Belfast. The possi-iThey now amount on average- The reasons for the growth in ! Three previous wells- have 

xJri^TllOri ^tending them lot to 40 percent of salaries. Tlie perks, according to the survey, been drilled ojm^ he block, indud- 

One in three companies 
have increased ‘perks’ 

IN THE PAST YEAR nearly one area of industry and commerce, 
company in three has increased It is the company's fourth annual 
office staff benefits other than fringe benefits survey. 

TTTr j • improved pensions and more Few companies realise bow 

I I JV 1 miriCYTl ; ltb Tr ‘ dent |pIao lo do the same, according much fringe benefits are cosOng 

!• w UI RiSAll. ; ld * ee ‘ 1 to a survey published yesterday, ihfim and 24 per cent of those 


form of sponsorship for small 
inventors is needed -in Britain. 

It suggests a scheme by which 
a small number of cash prizes 
miehr be awarded each year, of 
a size— nerhans £5.000 ar most — 
large enough to permit the 
inventor to take his idea another 
s ten in the development cvele. 

Augmenting this scheni" minh* 
be “ inventors* galleries " 
nrean'sed ' bv engineers, w-here 
invnpfnrs enqld nlr>ce their Ideas 
on public display, and offer them 
for sale. 


Bank of England “^ S s 
gives 500 notice j ukeiy 

to prompt 
new upset 

at print works 


because, it says. 


THE BANK of England has sent case wrueuac. : 

dismissal notices to 500 members strenjnh of sacieu membershm 
S Se Society of -Graphical and amon^ the examiners does not 
Allied Trades who arc in " 

warrant iL i Advisory, Conciliation and Arbi- 

ment ai Us sole note prmtins neen prepareo i hy v an f 0ll Mi Ca non Of finding* a gainst a 

Sy Alan Pike, 

Labour Corrapondeflt 



Sympathetic action 

inc dispute has seriously drive's. In suupori •J' 

hampered note printinc at ihe shop claim has prevented all at^ 

— vecn,- a np LTibutioD since MhV 15. 

works in Loughton. Essex. 

The bank normally print* 

professional .engineers union «u 
-the public water service. 

ACAS has decided against 

recommending recognition for 
the non-TUC United Kingdom 

has prevented alt distribution of - — - - --- ; notes 

new notes for two weeks. between Bin a ^ d ' nf oirf'ine u«n-i i. - . . 

The bank said yesterday that a day for replacement of ovi . of Professional 

the notices had B on.e to about notes, pie ban k aj i iDji t ;no , En!l inucrs for employees .if 

half the works* note-exam Inina dispute has noi«n>sKn in : waitr authorities in spite of 

Reveille back after 
printers return 


Reveille magazine was- back in 
full produttiun yesterday for 
the first time in three weeks 
after maehlne minders In the 
National Graphical Association 
agreed to resume normal 

The decision taken by 23 
machine minders at a short 
union meeting in the morning 
raises Fleet St reel s prospects 
of some respite at least from 
the surge of industrial rela- 
tions problems which have 
plagued the national news- 
paper industry since Utc 
beginning of this year. 

it was almost certainly 
influenced by the decision last 
Saturday of machine minders 
on The Observer to call off 
their unofficial action io allow 
the Sunday newspaper - to 
resume production. 

It also .improves the climate 
In which print union leaders 
will be meeting bn Friday to 
seek a solution to the problem 
of unofficial action taken by 
their members. In Fleet Street 

Mirror Group management 
welcomed the refurii to work 
and, although > this was not-_ 
taken as sc guarantee of un l 
Interrupted production in the - 

. involved the service's finUln;. 

| majority support Tor the associ.i- 
: lion among sections oF employ, 
s ees interviewed but refusing '.u 
! recommend recognition ou wider 
j grounds. , 

I A High Court attempt hy the 
j engineers* association to set aside 
one of the decisions, at tne 
} Bedford-based W. H. Allen Sons 
and Company, is pending. 

ACAS has indicated in a 
number of recognition findings 
that, while the views of indt- 
, viduals directly involved are 
weeks to come, hoped that the | always taken into account, a 
machine minders* pay claim j decision is not made on this 
would be pursued through i factor alone. The service is 
normal negotiating channels, i charged with ihe general pro- 
M embers or the association, j ntotion nf good industrial rela- 
who work on a casual basis • (ions and says that it Hus tn take 
on Reveille and seven of whom i into account the overall effect of 


a recommendation. 

In previous cases where ACAS 
has failed to recommend recogni- 
tion for a union in spite M 
j strong support. established 
i unions and employers have 
I'npposed any interference with 
existing bargaining arrange- 

also were involved In indus- 
trial action over a manning 
claim on The Observer, have 
refused management offers of 
productivity talks. 

An agreement is said to have 
been made with London offi- 
cials of the association to raise 
pay from £19.50 an eight’bour 
shift to 124. based on a re- 
duction in Matting of three. 

• Unofficial action by asso- 
ciation members which lias 
prevented publication of the 
Bristol Evening Post since 
Saturday was called off yester- 
day to allow a demand for 
improved sick pay to go 

through the disputes proce- [ TOWN HALL STAFF and other 
dnTe - • ’ public service workers are 

Bristol United Press, the expected to campaign for more 
- publishers, estimated it had ’ time off during the next 12 
lost more (ban a quarter of , months and a shorter working 
a million copies because of the - • week i s certain to be demanded 
dispute infrecent weeks cuimi; I when the annual conference of 
naling-^-ith -the dismissal of. . the 700.000-strong National and 
in members over the 

NALGO to call 
for shorter 
working week 

■ weekend. 



in and.. to such European most common changes have been are regulative changes on items if 11 ® one in- 1975 which; resulted 
* a-; Paris. Brussels and increased luncheon vouchers, like pensions and maternity ’ n a “ hichly encouraging" dK- 

THL i.jiiie to t Britain Trophy Amsterdam is being considered, .better social facilities and mure leave, and pay restraint. 

.ivi. i rded annually by the Britisb' 'holiday and sickness pay entitie- The survey found that 5(1 

l.iimM Authority, has been won: j incnls. cent of companies provi 

Maxwell not 


By Our Own Correspondent 

the Fii tuition Cent i c. The 
.■■■nJerener. exhibit icu and 
•.■ntcrt.iin.isert eunipicx “was, 

Britain'- nut standing tourist ■ 
i-'vi’Ioicncnt during 1977.'" .sj» ; 

:iic .luibor.ty. 

I'Jii* trophy presented to 
Brighton Bnrouch Council in 

5 i rl^ 'risMn ^i i nisi.^r f,»p b ih \ Usher, has failed in make^tbe 

ii sss 1 : 

vent t« the National Centre for Mr. Maxwell failed to receive; 
Mvrn.itivc Tcchnoiogy, uhicb any votes among the 30 j 
r •**•••. i re fund and energy . apjificants. 

snitrccs j! Machynlleth. Pmvy**. A slmi't-list nr in has been! 
anr} *!ie N.itinnai Tru-f s "Rescue drawn up which will he minced 
at F.rdil'.'j. ^ a pvivnii- hou-e :ipd {r» five «n June 9. The name »f ■ 
>>t.ilc badly afiecied I" sub- ihe successful candidate to' 
sirtcnci* near Wrcxh-mt. I'hvyd 

! covery. This latest well was the 
first to be drilled by Chevron as 
the new operator on the licence, 

The w-eli was 'sunk as part of 


companies provided 

Almost as many companies medical insurance for workers, 
plan to introduce new benefits. 12 per cent paternity leave.. ... .- 

with better holidays, flexible 79 per cent life insurance. S3 per ! a . deal involving the change of 

hours, burns and bonuses the cent season ticket loans. 19 per licence partnership, 

most popular ideas. cent help with mortgages and I -^ s . a result of the deal- Chey. 

These are some of the findings house deposits, and 20 per cent 

in a survey by Alfred Marks wedding presents. About 68 per 
Bureau of 100,000 office staff in cent of companies provided free 
336 concerns covering a wide tea or coffee. 

Phone book advertising 
contract for tender 


ran has gained a 42.5 per cent 
Interest in the block. 


South-east rail 
commuters ‘not 
given fair deal’ 

Financial Times Reporter 
AN MF accused British Rail nf 
putting commuters in south-east 
England at Uie bottom of its 

Mr. David Crouch. Conserva- 

roplace Mr. John Di Iks. who has, 

Thv Mu-emn of l.uiu!>«n. in the resigned, will be announced on THE POST OFFICE w lo invite test the market. 
ru> nf L«nfh>n. and ;h- National June Id. The seat is held hv Mr. : tenders for the contract to sell Thomson wid that it 
Theatre, on the Sum ih Bank, were Michael Morris. Conservative. space in us 40in telephone books. ni*ed the Past Office's right io | 
the winner- uf sp-JCial 
public enterpn-c. 

awards for f-,iipri r„ "," hn Tlie t p!,ders W| H he for sollinw ae ck the lowest price For the job. I o 31 'i !er - c J ia ' r ' 

tU vlclt CL ,hC advertisements in books to be and that it Was confident that its {JP 8 ”. of ^ nl , Ish and ?° 

Lloyds Bank 
loan rate up 

By Michael Blandrn 

(.VSTOMCKS :?f Lluyi|> mil 
have to pay higher rates lor 
personal and home imprmemuni 

The hank .ipnouneeil ; iMer-lay 
That liie rate "ii u new pcrxm.ti THE \MOl.'NT nf c.ircu through 

hnrt-hst fur ^ published after tile end of I9sS expertise would place it in a -l^ out ^r n ^. e 8* on - detnandioz an 

IrA'n - h' , « fhiiTfl .". ^ 1 ' when the present contract with favourable position for secur yjg j |nimed late improvement in, time 1 - 
: year diinns th e Ma roh tn find »; T , lomson Yellow Pejes will ha,e the contract once more. T 1 * 1 ! „ ■ - 

— v.^ . He has also tabled a Common* 

one of the largest adver- .. ® A telephone with a but Lt-in | question on the issue to Mr. 
•tis.n- contracbm tbi^counlrv launched yester- j\vmiam Rodgers. Transport Sec- 

I w E* tnrmn'r iVctth “ ^L h „ y s °®“ Te,eCOmmu ” i - hc H .. „ , t 

cations. ! Mr. Crouch said: People who 

. iMndidate to succeed Sir Geoff rey : 

!de Freilas when he resigns at j. . 0 
; the next general election 

Port of Tyne 
cargo figures 

mure than £30m this year 
Thomsons Yeilow Pages, a 
division of the Thomson Organi- 
sation. has sold space in direv- 
lurios since 1!>G5. intruducing 
Yciinw Pages in HlfiH. 

Tin? Post Office <jid yesterday 

hum ovt two years vill be ihc P-irt of »yn , * ui tiie flr*t 
iTicreaseri lr»t;ii file present 14 7 qu.iriur total led 1 2:!'J.7t»:i ii»nnes 
jM'rxent tu IflT pe^cem. This is — 42.BB6 tonnes jup «*n tlie -jme 

rf(t:i valent .* fiat interest ran- .perind ef WT7. -md not a-s tract with Thomson had uecn 
,-»n the initial .'mount of tile loan reported in Us' Thursday's renewed uncompetitive.:-- for 15 and 

of pt-*r cent 

Financial Time? 

It is a push-button telephone. | spend £600 a year on fares are 
into which Ihc user can pro* untitled in something better than 
gramme up t« 10 number- which * British n.-,i| is giving them, 
he commonly calls Each num- . “ It may be wonderful to travel 

aer corresponds to a single digit. ’£ rom London ro Edinburgh in 

...i- r..^, The new telephone will be! S°[ ,rs business expenses, i here um< nn question rif avail a We shortly .in Glasgow and ‘A nw,s ' 1 h * w,, W w 
being dirsalistied with Thomson ? Bristol, then throughout the UK ' n J m , . - *?' } F r " m * ^■ 1V 

How ever, since t!. e con- later In the year. * Jui. p ,n - d,rt . v , tra,n " 

IT will cost £5 for installation ■ ! h u;" v, en ,en J- v Tl Vt ' ,alP 5,ml 
id £7 per quarter rental in have actUd Hi' 


years, it was felt to be time To addition to the standard charges.-; ' p 

Record 36,322 book titles 


I’BLfSHERS' s.,;.-- ., n d 
intinued tu >hu:v -lejtly 
ver the pu>t ycjr. while 
• publishers' earnings 
: ^agnalcd. 

oy -how s That br*uk pub- 
jfneri over annul i.4Khm 
[flora tip **n the 

xports acenunted fur :th 
of turnover, leaving .1 
wholesale market »*t 
ind a retail market of 
iXeluiitag £70;n-worlh nt 

1 »n rc.i! tirtwei'n 

I 1077 after artiiMment 
,«im 1 *»-r cent 
ban Ih<* pre' io'i* 
if”-- j trend vl slower 

TI lu u - “ 


A record Sfi-- 1 -- includ- 

1:1” roprinls and new editinns. 
Were published in IP,,. The 
survey comments that ihe num- 
ber uf titles- surprising “in 
iir*w of the coils 1 d«- table flnan- 
vial -tram* heme fait (» ini'"- 
li»hei->-.“ and that tin* rcvortl 
may stand for mihk.- time to 

Profit margin- of th** main 
book pnblishiTs are >i til good. 
Nearly half the •"iff -elected for 
slioty m ihe had profit> in lf77 «•! treuH ih.iti 
til per rp|ii Tlie aierac* 5 nnc 
ef 1 boot, l.l -I ■ i-af ’«a: fii -ISp. 

in ihe majj:iae field, the 

p- ■ - • “ 

survey shoes That the sales 
revenue of magazine publishers 
for the year ending September 
Sit. 1977. was £23Sm. up £2Im m 
the previous year. Advertising 
revenue was £2l0m. compared 
with £l7$m in the previous year. 

“ C n n * u in v r " magazine* 
aecouni for 70 per cent »*f sales, 
and "trade, technical and pro- 
fessional '' magazines fur the 
remaining 30 per cent. In 
advertising, the spin is about 

tirovtii ui -ab-' :»nj :p 
advertising revenue 1- :vMdiy in 
Iitir with inflation Only young 
women'* nnga.'toej and genervl 
tniereat ones nave shown growth 

above the index. 

The largest exception to a 
generally sluggish market i* IPG 
Business Press, which publishes 
more than 100 trade and tech- 
nical journals, Sales increased 
markedly, and net profits more 
than doubled from £2m in 1970 
tu r4,3iu in 19<<. the 40 group-.- selected for 
study by the survey, only 27 
were earning higher profits 'than 
four years previously, j "sub- 
^tantia! decline in real tprms. 

Book Pubimhiutr. Magazine 
Publishing. avuilahlo from 
fordo n Pataqvwt. Jordan House 
47 BriiKsnick Place, .\ /. £60 

j Freight men 
| in road plea 
| to Rodgers 

AN Uih-bour appeal to Mr. 
William Rodgers, Transport 
Secretary, to have the “ban on 
goads vehicles using the 13 roads 
to the south of Windsor recon- 
sidered. has been made by the 
Freight Transport Association. 

The associatiun wants the 
• Minister to hold a public inquiry 
' into the scheme. which 
, Berkshire county council has so 
I far refused. 

The scheme, scheduled to 
start un June 14. will effectively 
hati through-traffic from » 40 
square milp area, diverting 
lorn'ps to other rnutes and 
iincrcasin* travellinc time and 
cost*, the association says. 

Local Government Officers’ Asso- 
jciution meets at Brighton next 
I niontli. 

i The ' NALGO executive will 
support an unspecified reduction 
in hours, while Birmingham 
delegates want to go further 
and demand as a target a 30- 
hour 'week in all occupations. 

NALGO's firm line reinforces 
manual union pressure for more 
leisure time and earlier retire- 
ment as ways of combating un- 
employment A special report 
to- be presented to the NALGO 
ago last L conference says a widespread 

. Cm Hfta «*■•»* vai. sue - auinc lasted a [shift .to a 35-bour working week 

Mparate negotiations face Mr. month and caused nearly 50.000 1 could produce nearly lm. more 

TeiTy Duffy, who succeeds Mr. workers to be laid off. ! jobs. But it tells workers bluntly 

Hugh Scanlon as president •« Because he is . dissatisfied 4t j that they will have to give up 

uie- -Amalgamated - Union *h lack of progress" in dealihg with -their overtime if they are to 
Engineering Workers tn two claim. Mr. Fraser is calling 1 ' help their unemployed fellows. 

autumn, with the first major al] BI ^ Cars toolmakers to strike! 

challenge tu his authont>'. on June 12 as a one-day- token 

As Midlands executive member of possible future action." 
before being elected by a con- Mr. Duffy will meet Ley land 
vincmg moderate majority, Mr. shop stewards next - week. 

Duffy is under no illusion that ostensibly 10 report back on | 
success iu taking the toolroom progress by the joint negotiating I 
men with bim depends largely on committee on pay parity andi 
wresting the leadership of more incentives. An original incentive: 
than 3.000 dissident toolmakers scheme embracing, sbopffoors 
from Mr. Roy Fraser, their un- generally was recently rejected 
official deader. in a ballot. 

Duffy hopes to calm 
Leyland pay revolt 


REBEL TOOLMAKERS at British Mr. Fraser took the AUEW 
Leyland Cars who are renew- members out. on. strike over the 
ing demands for pa, parity and 
separate negotiations face r~ 

Teiry Duffy, who' succeeds ] 

Hugh Scanlon as president 

Tumor doctors 
seek to ‘black’ 

New moves to resolve . 
pit rescue dispute 

By Our Labour Staff 
JtJNlOR DOCTORS in Leicester 
shire decided yesterday to call 
on tile Council ' of the British 
Medical Association lo back 
their stand against the terms and 
conditions of employment 
offered to junior staff by 
Leicestershire Area . Health 

The junior doctors' committee 

EFFORTS will be made today to 40 per cent, the same as that of ' n*onii re nnt y to a ^!?i inS r 
try to end a dispute involving 38 typists. ' no L3° ■* p PJ- v for jobs id 

pit recue men in Yorkshire over Derbyshire miners could also' 

productivity bonuses. Yorkshire become involved in the dispute. ! a CounLl 

miners have said they will strike in addition lo the 86.000 York-' . hp ~ on 

from next week in support uf shire miners. The Derbyshire: Izl ,n 

the rescue men, and their action area council of the NUM hasi 1 T|K! tists^re 1 
could spread. voted to support the rescue djs njLed m th^ 

A joint National Coal Board- ' v . 0 i y ker ^ lhou 8h not tor strike 1 mtmhi section uf the BMJ as 
National Union of Mine- [authorities whose terms and 

workers’ working party will try > ester day Mr. Leslie Story 'conditio os of service arc un- 

to find a .solution 10 the dispute ^Jl eral secretary of the white- 1 acceptable to the BMA 
at a meeting in London today. section of the NUM,; Contracts offered to 

Miners' leaders also meet today appealed to rescue, workers to , staff by tbc Leicestershire Health 
in Barnsley, and two muss rallies 'Shore .the strike call. - He said Authority were described at a 
will be held in the evening. i l c o»»Pietely, uncunstjtu-. meeting ' nf the junior doctors' 

.... itonai, and that the union was committee as a 11 iravpmv nf ihp 

The MJM wants m 100 per cent r» n the verge or reaching an model contract and ^nuinnii 
honus under th e national tncen- agreemem on pay and conditions terms agreed with the Depart! 

UL’Piinn iL'Aiil A iUa vacaka ■ ' ■ “ 

to junior 

live scheme for the pit rescue which would soive the 
workers. Their current bonus is workers' grievances.- 

rescue ment of 
! Security.*’ 

Health and Social 

Firemen’s union is insisting 
on recruitment drive 


UNLESS LOCAL authorities 
begin a recniitment drive,, fire- 
men will believe they have been 
“conned” by promises of a 
shorter working week, the Fire 
Brigades Union said yesterday. 

The union, which meets the 
employers on Friday to discuss 
the shorter working week, 
warned in a special issue of its 
journal that firemen would argue 
that if they could.-not win their 
shorter hours by negotiation 

they will be forced to lake it 

A commitment to a reduction 
of working hours- from 48 lu 42 
per week was tnvblvpd in the 
agreement which ended the first- 
ever national firemen’s strike in- 

The: union complains that 
after more than four months 
there have been ** no meaningful 
negotiations" on the issue. 

“Not a single man has been 
recruited towards the substantial 
addition in manpower which will 
be needed if present standards 
of cover and appliance manning 
are to be maintained when the 
41-hour week becomes a reality/’ 
says the union. 

Udion negotiators do not ex- 
pect to approve of some of the 
proposals for achieving the 42- 
hour week which the employers 
stdfi will announce on Frida>. 

They know that ihe cm plovers 
prefer the idea nf a three-shifi 
system — the union favours the 
existing two-shift arrangement — 

and have considered including 
more non.flreflghiiog work in 
normal duties. 

Such thinking, says the union, 
is “ totally at variance with '.ne 
concept of a- modern' fully- 
trained technical fire service and 
\ne job of a qua: tied fireman." 

T:ic union says ;* would be 
n:*ive in ..the extreme not to 
102! isc that a re.-ew of fire 
ccier and manning being sough) 
li" the employers “would he 
aimed at making financial sav- 
ings by reducing standards nf 
fire cover and as e conioquenci 
cutting who I cl mu in an pew ir." 

Lincolnshire fire authority, 
says the union, has already pro- 
duced plans tn reduce its whole- 
time 'strength hy 37, representing 
a 20 per cent cut. 


Financial Times Wednesday May 31 1973 






Every year is an export year. 1978 is no 
different. The Financial Times believes that there 
is a vital and very pQsitive contribution that 
British business cari,make to increase exports. 

Which means companies like yoursgetting 
their top salesmen to leave the'country. To go out 
into the World markets and sell, sell, sell. 

By publishing an extensive Survey on British 
Exports on Tuesday June 27 the Financial Times will be takingthe 
opportunity to re-appraisethe export performance of British Industry, 
It will be a timely and in-depth analysis of the aims and 
achievements of our exporters on a wide variety of fronts (as the 
editorial synopsis belowshows). 


And it will also do an important job of promoting these 
achievements to a wide and influential audience both at home and 

■ ■ If exporting products, technology or services is essential to your 
company’s livelihood and expansion, you must have a success story 
or two to tell. 

Make sure you tell it loud and clear; 

Consult your Financial Times representative for details of advertising 
space and rates or contact Clive Radford on 01-248 8000 Extension 7 048. 

Besides contributing to the good hews about British business 
it could also help win you more orders. 

Which is just what everyone needs to make this a year to . 

Editorial Synopsis 

Introduction A general review of Britain's export performance in the past year; our 
share of world trade: the impact of fluctuating currencies; the major success stories; the 
outlook for world trade and Britain’s share in it. 

The Industries This section will deal in some detail with the industries which provide 
the major part of the country’s exports.The first article in the section will examine the composi- 
tion of the major sectors. This will be followed by a series of articles examining the perform- 
ance of. these sectors, their share of the world markets, their main competitors, their 
strengths and weaknesses, and the prospects and problems which they face in the coming 
year. These individual sector articles wifi include: Mechanical engineering/ Aerospace/The 
motor industry.- Textiles and ciothing/Electrical engineering/Electronics/Chemicals. 

The Companies This section will examine the role of individual companies in the 
country's export effort. The first article in this section will examine the structure of exports in 
terms of size of company, indicating the importance of the hundred largest exporters. This 
will be followed by a sei ies of profiles of six successful exporters of varying sizes; these profiles 
\v<ll discuss the way these companies manage their export sales, their attitudes towards export 
business and their plans for the future. _ 

This section will also include a number of shorter articles on some of the major export contracts 
which have been secured by British companies in the past year. 

The Markets This section will analyse the geographical pattern of the country’s 
exports, showing which areas have shown the most growth in the past year and discussing 
likely changes intfie direction of exports. The first article in the section will be followed by a 
more detailed look at the main areas, noting the special trading problems which some of 
these territories present, the strength of overseas competition and the exporting strategies 
that seem most likely to succeed. There will be separate articles on the following areas:North 

America/Western Europe/Eastern Europe/Middle East/Far East/Japan/Africa/Australasia/ 
Latin America. 

The Financing of Exports The role of the clearing banks. Atook at howthe banks 
deal with the financial problems of exporters, including the special problems posed by 
performance bonds and other difficult contract conditions. 

The role of the merchant banks. A look at howmerchant banks assist their clients to devise 
financial packages which are often as important in winning the business as the quality and 
price of the products. 

The role of ECGD. A look athowECGD has widened and improved its range of services to cope 
with changing conditions. 

Floating currencies. Howthe world of floating currencies has complicated the exporter’s life; 
the impact on pricing policies; howexporters can protect themselves against changing 
currency values. 

The Role of Government The Department of Trade. Howthe Department helps 
exporters; the range of services and financial assistance; how exporters use these facilities. 
The industrial strategy. A number of Government's sector working parties 
have made recommendations designed to stimulate exports; 
are these suggestions likely to be implemented and what 
effect will they have? 

The competition. Is it true that other countries’ governments 
provide more support to exporters than our own? 

A comparison of the service provided and the policies pursued. 

Invisible Earnings The concluding section will 
look at the importance of invisible earnings in the country's 
trade performance and their growth prospects. 





Financial Times, Bracken House, 10 Cannon Street, London EC4P4BY. 

Tel: 01-248 8000. Telex 885033 F1NT1M G. 



A-V s 
-1 f ... 



More power from 
diesel engines 

AT NO EXTRA cost »o the reliability l« of prime Jm- 

i'u<tniiier a Fetter, a Hawker ponance. 

c.j.i P ctter has increased the output 

S.dUfk-. am»m. . lias spM(1 „ y rp ,„ w 2-200 

pn^ineered a !0 per rent. Qn bol j, c „g ines . anticipating the 
increase m the power output of growing i-ost-consciousness of 
lb PHI and PH" diesel engines, end-users who want to obtain 



The « ingle-cylinder PHI lias mure work from their equipment. 

*» up«i«I «• »S bhp. ud 

twin-cv tinder PH- to 21.5 

"Z expensive breakdowns suffered 
3 hi over-stressed. under-powered 
hhp. Buth are widely u*ed tn the U niiv 

• '•"m met inn industry on Pcfler manufactures air- and 

dumpers and cement mixer®, and waier-rnnled riie-jel enaines of un 
■nr continuous duty applications, to 45 bhp with worldwide sales 
such a- power generating <els. anrt service 
and for water pumps, when .More on 01 930 6177. 

Makes it easier to 
project films 

PROBLEMS nr effective and time. A simple servo system is 
rciiahlc endless loop Ifimm film incorporated on the rim-driven 
projection hare been resolved turn-table. This is activated by 
i»; a new loop absorber, intro- 3 control arm round which the 
dured oy Elf Audio Visual or film is laced. Any movement of 
Si-nigh. Departing from cun- that arm operates the . system 
vent i until design concepts, it i* cither to reduce or increase 
■.r.nuiued. and feeds, horizontally, running speed. 

E!f says it ha- a vastly improved The motor-driven turntable 
design which incorporates unique which feeds the film .into the 
features, yet -till gives simple projector is sprocket-free, there- 
arrd reliable operation. hi minimising perforation wear. 

Elf LAE'J loop ah-iirbcr i* The turntable principle of feed 
designed as a free-standing turn- ami take-up practically ^ _ 

table which enable- ;l to he eliminates film tension. Should a 

operated -.vith vinuall; any luiinii it occur excessively an autonta- OlllUUlJLiiJ lilt 
projector wuhnul the lo'cii fur tic evil mil device shuts down 
adapters No s iwial too;* the projector. A micraswitch 
farmers are reuuircd. To lace unit cuts mu the projector ”, 
the film it is fi i — t loaded "n the -.huuld the film break. Because 

financial Tiflaes 


Lead sheet in building 

Wednesday Way 31 1 » 7 ^ 



■■Tbe Plumbers tbe t ^s ^ "'n" L^‘ d 

REPLACING ipsifl m duiiv |,m < ■■ 

• Handbook ** {which, in It* various Association d 

orininne haa been' accepted as authors * 1 j |V £, C | piriu’d- 

edilions. has been accepted aa The 
the standard reference for over a closely 


MJ-Q reiereuuc - cioseiy n3 id Dewar- 

quarter of a century I is a com- graphic designer.^" cul . aw3y 
pletely new. work on both the Mills, whose flume lTalp the 
traditional ' and modern uses of isometric drawings colour 

lead sheet. ! writers’ advice.^ A™ llf 

Said. the definitive refer- section showing , ars<? aa il 
ence work lor ail” those designing recent . d [' t b C io$-pu?e 

and Working" with this material, small, is -included to 
'•Lead Sheet in Building — A guide. , , f reP fruin 

Guide to Good Practice.' 1 is are a . Hev Snujn\ 

written by Charles Knight and the LDA at 34 
Richard Murdoch, respectively* London WIN 6.AJ 

Integrated mga 

fass Electronics Limited 
nSR? S 2 BB fur il/lffltef/j? 


An additional advanlage »f 
fluid is that it act: » ■*» “J® 
matic sealant if lhl ’ s - - , ? ,n 
taining ' it is punctured. 

leaking fluid reacts J’JJJ 

atmospheric moisture m 'P™^J 

SuiUble for use in industrial complexes and 
by local authorities this equipment, designed 
for cleaning pipelines and sewers, is to be 
used in a sen, ice operated, by Industrial 
and Municipal Pollution (IMP) of Winkl ed 
Devon. <0S3 783 555). .The .equipment will eh 
Is fitted on a two-axle 16 tonnes' chassis 
includes an Independently powered centri- 
fugal compressor which will lift solids and 
liquids Into its 6 cubic metre tank. Another 
powerful device is the high pressure jetting- 
and rodding system, claimed to eliminate the 
need for anyone to go below ground to 


flow of trade 


*1*. -*.* irassriffl 

' which contains no asbestos. ba«» which effective!. - propiirt j 00a j 
received approval for Hre pro- rate of reaction - - 

lection periods of up to two 10 JJS » vi>cnsity at 
hours to steel columns and A has a k * an d 

beams in a series of tests which ,-ipdeg .C of 9t* te ' * ' u . er 

for the first time has' established the coefficient of evpaOMon^ ^ 

: . the thickness of insulation board the range -0 ri- *. * 

necessary to protect beams and 0.000775. nmoanv at 

columns of differing sizes and - More from the Vf incb’esier 
mass. -The approvals result from ®o t3n, c®! ,A v i e ^- l -*'oj W i', 

-tests, carried out at the - Fire M18 OHL.(061 h«- 
Research. Station* Borehamwo'od. ■■ m 

. and . Warrington .. .Research ai|| JJ| 

' TALC Construction. FOB -22; ' , 

Trafford Park; 1 • Manchester mwiAa 
•M 17 1RU. <061 872 3181-. ' - ” -111 ikt 

Trig ‘•'.'■'V*' . . SUGGESTED TOR back-sprayed 

Fluid has 
wide range 

SS SSSS2* tS5?c p V.VS -SS fiaSF^.'^SSB £SSSr%— 

apply to any make of computer interrupts, four, of which may be Sf ^ \wnue ciovd n Surrey. CF.9 

or transmission equipment; They individual^ ■ - program - mask. fl “ ,d • v '?‘S lr U5e ^ *" oZ*r U(! ’ Cro>fl,,n ” 

wifi be available nexf-mtatta in selected For serial and -pprallel -^IliS^rhP M nrJ ^Produced frn’-i unrU.- aeryiK 

the form of. a comprehensive peripheral control^ two ere :user- s,mi ^ ar 1* V . C ?S {0 eov ? r ranfie PFoduced . - 

investigate a blockage. ' Variable pressures 
up to: UO kg/sq cm can be provided and 
IMP says pipelines, from .100 mm up to . 
1-000 mm diameter can he cleaned at rates 
up .to. ISO metres an faoiirL. IVhen -the 
vehicles tank is full the. operator drains off - 
the. 'liquid to leave only solids and this, 
operation can be carried our several rimes' 
before toe need to' ‘dump the sotlds arises. - 
IMP dsims Ibat Us machine eliminates the 1 : 
need for separate, jetting equipment, galley-' 
em ptters. sk i ps backets. an d. ; winches and that. ■ 
only one man is needed to carry out .a 
cleaning service. 

change, whether via communica- random access memory, while 
tions links or by physical ’media servicing 'interrupts, arid sub- 

or silk-screened second-surface 
applications — particularly for 
sign components, illuminated 
poster boxes and small fabrica- 
tions — is an extruded acrylic 
Rohm and 

moulding powiWs. yet -5 


Takes out 
the gas 

VUXUM pi -ANTS have be® 

announced l*y Leybold-Herwa* 

for remuvin.c hydrogen and mule 
impurities from molten alt*, 
minium am! aluminium alloys: 

The cwmwny maintains that 
these .•quipmonts. desiKnatetf 

-\LK l.-»rt-50‘ l ^ chcapw ft 

insult and rim than ehtoriaf 
treatment p!‘ ml * 3ni * hre fen. 
oi .i health hazard. . _ 

fstially flu* operation would 
take 11 lace helwwn tupping 
cast in i: ami up t» L5 tonne* n£ 
be dcsasseil. The graph its chw- 
cihlr hold in ■-? i he molten jpeftT 
i* surrounded by a vacuum right 
chamber encased in a hear ins^ 
la ting hood. The pressure &T 
quickly bruURhi down Jo the* 
range 0.5 to 3 0 millibars, arid 
the melt boils as it gives riff 
hydrogen. z. 

After a few minutes It is few- 1 
Jiveiv gas-free ami oxide ytap-.' 
can be .skimmed off the surface 
of the metal as the crucible tr - 
removed from the vacuum plant*: 

Relatively little heat Is Tost 
during the shon process; but -if 
liic time is extended for any 
process 'reason rhe unit canW : 
provided with heated hood. Uwt-t 
on 01-S5S 1127. : ,*_* 

' — - - 

• fi;i r.jjr'-’toner.t heUieeit tkt~ 

t jKi!».Tfi:/ runt-* tusd.thc B8£v 
in ini ttnil inn frum the TcdlUVpi, ; 
p, iirnihiidt' for ttw by 
(jirfwraiieu's F-rimin! Seiwer* 
ns juiitnr w .-« ttttriol for its 
srn- Priwiili'ii.sN 


Watching the races 
in comfort 

relevant there in view of increas- 
ing demand that computers be 
able to prepare documentation 
process messages from other \ 
computer systems, including packed 
those in other countries, from 

optional system moriftor for load- ^ called -Hvfill A 
Ing. debugging arid executing • . 

programs. TTie monttor permits- '■ — ■■■■■ , ■■ - ■■■■ ■ 

“ w ^, OF mLo 7 0 7 X v EXHIBITIONS 

small space 

5 aim;' Mon* on ill-dSfl SS44. 


Looking for 

SITPRO-, will « m „ve ore gSSp $ &SRJ8&S “ AttTaCtiOllS 

THE POINT to pmni finals at long room-is walled with tinted If imernlttonTtr^de** 8t0WXh ^'‘ins^^spSce 'in'a stondJrd «°nare SntodbriSlayed bs>% .• jj-tq ^ - 1 

Chepstow racecoune. May 28. Slass and can be raised and Nearly 200 UK organisations 19 i n s P rack. - Based on -the T fit r /ITW tbe \cnuc hv BMW lowyd hydraulically. Whcu haae coutrihulcd ^.lu. the BLCW/W^wnSr pS«o? ' Nttioual on. 0234 ^1262 A Ut IS 

GB fo iaiincff" 'It* mobile bos- r a,sed -^e^es above the- unit's standards work, and ar the inter- board using the S8060A micro- A rif. •* THE FRENCH say that last year THE ‘ -MAIN problems in 

mtaliu unit called the f uV r !^ e L re h ‘ ?h b “ d *';' 8 ue J sts l are national l<*vel StTPRO ha*= also p-ncewor. the rack-mounted /AJLI^lTy nearly 500,000 visitors = from industrial furnaces are faulty 

puaiti. unit. cauea me able to have a grandsund view. ctMiperated with the Uplred unit Incorporates proerammabie ^ \ , hrKaH ren- n«f n^nf «r whom combustion and poor installation. 

ranaroanu Tbe 40 feet trailer is towed by a Vatinns and International serial and paralTei input/oumu t, fo ^ ' abroad 20 per cent *f wton Mys Holwork Services, a ^ub- 

1n tended as a luxury mobile i u rbo-char-ed 2S0 horse power Stands rdc Or-jani cation. complete busing, power suMly. C^rCHIfS.r ■ t** 1 * fr P m . outside Europe) sidiar y of lhc Yorkshire- based 

suite for enlcrtaining. or wining M.AN tractor unit A significant Feature nf fh«* fans and three expansion-board MAKING Data’s * ttended specialised exhibitions combustion engineering group, 

nnd dining the cumpanj * clients Designed and built within six standards is the da'a elemmit s i 0 t 5 . j-. Cybernet network^tffe Institution at the three exhibition parks in Hotwork ’International. 

^ Sl m!ni l vnr t ! , mn U Jr ‘rh'p TPJ 115, brai, L‘ ; ,nss3ry< "7 th ‘■“comm ended :The microcomputer., hag, six of Electrical Engineers is now the Pans region and other parts. The company's engineers are 

dr>crH>c(i a» a mini \ crMon of the child of a Wellingborough fnnnats and cod'm svatem** general-purpose 8-blt registers, offering a computor-aided birenjt of France. ‘ ■ ‘ now prirvidine an industrial pro- 

t.Northantsi company, David mitahto for in-hnu«* n«e and *pr an ^curaulator. a 16-Wt prSftnwi - gn.iy.ig service ' -,«yr*a cess fuel economy service and are 

s. BMW will con- rh«* «*^chanae nf &?+% het»«*»n counter and a 18-bit stack Engineers -and -scientists f-who « _ to conduct a thorough audit of 

Svdney Opera House. A special 
cjihijiv tun he -pread to give a Earl Associates 

2* members) -Included such sectorSe^tjpg furnace equipment and 

"and digital f 5 - the c l°. tb * s ' sports and compare the fuel costs with the 

Jd traneicnt , mechanical equipment, . output’ required. From their 

-and stress eleetroale^iMd anj agriculture, findings a course of rectification 
Tlftaeration *ctlon' wiil - be -initially proposed 

■ — — - i v.'— umj ■•*-, meuiwij. iue- m«u i>uimcE<pFA- ATirf sirnntsfion * ».' - different -exnlDtltons wilt nave- jnvol vine ^the burners. ■ rerrac- 

t , oi" 0re 1,11 O 1 - 560 - 326r ' «?r 568 v.- The -standards '.cjnej-toi-^ ■'.-»?». .-nrify .ritoragt ;v 1 the bi*n- Tield.^ 4K|JF*Pari» and- W to ries. control equipment, tyjie of 

second floor -an IS teet Piaa . ; ; . . wwwhinations of trade register wmtentsy anvwhere^ in 'nofTiave tb‘ become other five 10 different parts of fuel used., and air/gas mixture 

1 ’ ’• r - familiar -with any aspect of the the c ® UIltry - ‘ 





system itself, so that their More from French Chamber of More details of the schema 
employers wiUmot have to invest Commerce- House, 54. Conduit from the company at Earlsheaton. 
in staff trainlife or in'qomputer Street, London W1R BSD (01-439 Dewsbury, West Yorkshire. (0924 
toniiinal “nnirmpnf. 3964). . . . . . 

rj (SiarK3 .r 

,v'-- !?fAunPJi- id: 

... - !■ awTaw/T*;- 

i CAAlfAKrtl ) ( 



.— .f-..r:yT.W;irerV 
E--‘- •’ ■ *ic , 1 J-.. > f’sh q3!63 

The annuaf and special stockholders' meeting of Credito Italiano was held in Genoa under the Chairmanship 
Of Prof. Silvio GolztO on April 28. 1978. 

The annual stockholders’ meeting approved the statement of condition as at December 31. 1977 which shows 
a net profit ot Lire 6.433. 1 46.096. The . stockholders have resolved the allocation of .such net profit for*. Lire 
3 thousand million to reserves and the distribution of a 12% dividend equivalent to Lire .60 for each Uc$ 500 
par value share. 

The statement of condition at year-end also shows deposits for Lire. 14.3T7 thousand million. Loans Tor- 
Lire 9.591 thousand million and investments in securities for Lire 3,414 thousand mifton. ' 

As far as the international activity is particularly concerned, the results have been rewarding and have induced 
the Bank to widen the range of its own organization abroad with the opening of an Agency in Los Angeles. 
The. network of overseas Branches, coupled with the one of the Representatives and Affiliates located in 
the major financial centres in the world, places the Bank in the best position to offer its clientele an ample 
range of international services. 

The annual stockholders’ meeting has also elected the new Board of Directors for the next three years, the 
term of office of the old Board of Directors having terminated. The Board of Directors is accordingly constituted 
as follows' Silvio Goiao. Michele De Michelis. Leo Solan, Lutio RondeHi. Mario Rrvosecchi. Giovanni Agnelli Fausto 
Calabna. Giuseppe. Cassano. Fedele Cova, Enrico De Mita. Enrico Redaelli Spreaftco. Ugo Jabanelli, GukdG Zanardi. 
A special stockholders' meeting has approved the increase of the Bank's capital from 45 to 80 thousand million Lire 
in order to establish a better rabo between capital and assets under management Such capital increase will be 
effected, to the extent of 25 thousand milfion Lire by the transfer of surplus to capital and .to the extent of 10 
thousand million Lire against subsenptions in cash. r ' . 



fin millions of lire) 


un millions of lirei 

Cash and funds with the Bank qf Italy 

L. 1,977,049 




Ordinary Treasury' Bins and other securities L. 3.414.914 




Bills in hand 

L. 764.376 

Monetary revaluations reserve 



Contango loans 

L. 11,670 

Profit brought forward from previous years U 


Advances and other accounts - customers, 

Special reserve 



correspondent oanks 

L. o,o15.4/6 

Reserve fund for possible loan fosses 
Securities' fluctuation fund 




Participations . 

_L 78=057 


BuHdjn^s. eguiprnent and furniture 

1- 155.0^ 

Sundry risk insurance fund 



Investment of the staff severance pay fund L 4,585 

Current and deposit accounts 

L 14,317,623 

Other assets 

L. 545,625 

Staff severance pay fund 



L 15,767,560 

Provision for taxation 



Sundry funds 



Provision for depreciation 



L 1 641 532 

Other liabilities 



Forward transactions in securities 
and foreran exchange 

Net profit for the year 



L 1.560319 

Engagements, contingent liabilities 
and cross accounts 

L 15.767.560 

Cross accounts 

L. 4.393.729 

L 8,095,580 

L 23^63.140 

U 23,863,140 

TTw Board of Directors fn a meeting bekJ after the stockholder^ meeting has confirmed Chairman Prof. Stfwo Gofrio and Vice Chairmen, 
Luem Michele De Michete and Leo Sotari 

The d*tden4 s payah'e at afl branches a» Credito itaftana! sanca Commeroale Italians. Banco di Roma. Ba-ica Naaona'e del La«oro. 
Banco dr Napoli and Banco di Seta as from May t9. 1378 against coupon Number 12. 


The meeting of the shareholders of the Isveimer Endowment Fund. - Institute for ft* 
I . -Economic Development of Southern Italy - has approved the balance sheet for the 
financial year 1977 which is summed up in the following figures: 

BALANCE SHEET AS AT 31st DECEMBER 1977 (Italian lire) 


Available finds 103.ags.069, 458 

Loans ana c.-edil3 1.382J0(L8«&278' 
•Shareholdings 3.600X00.026 

Security n regiments 348379^47 J 3 U 
Omar eotnea 200067.736:062 

Obligations 19 
lh«rd parlies 
Susoensa accounts 





Endowment fund^ reserve 
fund and fund covering 
«f! note 

Debenture loans 
Advances bv the Treasury, 

CASMEZ. meflnmLcredq 
Institution and BEI 

Rsserve fund and sinking fund 24J27^M^n 
0 -,, er entries nM 


1-251 .795^07 JOS 

Gtfiqai-.ons to 

third accounts 



13^ 59.625 



Isveimer carries out its medium-term 
credit activity, both at, low interest and 
macket rates, in Southern Continental Italy, 
by the following operations: 

At low interest rates 
* 15 year 'maximum loans for the . 
realization of construction enterprises, 
reactivation and enlargement of 
industrial planis. 

•Business financing. 

•Operations on medium-term c»edrt derived 
from export of merchandise or services 
- and from execution of work abroad. 
•Naval credit lor construction. 
Transformation of ships and purchase 
of craft already in service abroad. 
•Tourist credit far hotel trade. 

At market rates 

•IS year maximum loans for buildino 
■ modernization or enlargements nf 
industrial plants. 0 

•Subsidies and 7 year maximum 
exchange discounts. 

•3 year cash credits. 

•Discounts and advances by reouftr 

?S, X/ y £ arly insla,rt ’entedue 0 from the 
State the Districts, the Provinces * 


.Subscnmion of bona loans upon lssue . 

hnn£ SOeS and adVa "C« on S,am 
bonds securities, as wen a* hi-V, . 

on ordinary Treasury bonds. lS 

• Other operations provided by oarticitor 
provisions of the law. y particular 


iKSy 01 P uW!c taw for the working 
..of fediun-term credit in lha 
qomrnentai South. 

3£L t ik nmm * st,,os ' ^ ^rve 

wdowmeni fund and the fund 
S!®. " 9 aM nSks amount io nearly 
330 ihousand milHon Italian Urfc 

Head Office In Naples 

Via Nuova Manna - TeL 7. 8311 11 


ROME - Via Porpora. 1 -Tel. 8G9.g2S 
MILAN . via Berromei. 5 -Tel. 876.801 
PESCARA ■ Via Aquila/IO - TeL 238.1S3 
BARI . c so V. Emanuste, 30/A -Tet. 23? 383 
POTENT A - v-a Pretoria. iib-TbI. 20991 
CATANZARO - Via Pugliesc. 4-Tel. 4IA)S 

; j r 

-a a : s : 5 

L-iYSS 1 


t 3j.^T 

i Jr- 

Knantial Times Wednesday Ma^ 3i 19^ 


' Wednesday May 31 1978 

Design in Industry 

Britain’s industrial achievements consistently suffer from the poor 
design of its products. In this Survey SUE CAMERON and CHRISTOPHER LORENZ analyse 
the reasons for this and the efforts being made to improve design techniques. 


Hy-Range Dispense System 

[ Design Counci 
Award 1978 






EARLIER THIS month a Par- 
liamentary select committee on 
science and technology was told 
that both the U.S. and Japan 
had a " high regard " for the in- 
ventiveness of British industry. 
What neither country could 
understand was why the UK had 
failed to exploit ideas “which 
oould lead the world.” 

It is not only in product 
innovation that Britain has a 
poor record. Design overall has 
proved to be the CindereHa of 
UK industry and this is 
reflected in the nation's weak 
performance compared with that 
of foreign competitors. In a 
paper presented to the National 
Economic Development Organ- 
isation last year. Lord Brown, 
former head of Glacier Metal 
and a former Trade minister. 
Mid u was now generally 
accepted that ton many British 
companies were being outpaced 
by their foreign rivals in 
product design. 

“International competition in 
many industrial fields is steadily 
shifting from price comparisons 
to design comparisons.” Lord 
Brown said. “In a growing 
number of sectors, production 
of volume products lias ceased 
or is diminishing because UK 
companies- have been out- 
dcMsnod by foreign competitors. 

“ Depan meni of Industry 
figure* constantly disclose a 
growing sophistication of design 
of imports as compared with 
home production. As Tar as 
international figures can he 
trusted, they show that the 
resources .spent by foreign com- 
panies on product development 
often exceed by large margins 
those spent by equivalent 
British companies. 

Slat ist ics compiled by the UK 
and other OECD governments 
prove that British industry is 
far less willing to invest in re- 
search and development of pro- 
ducts than her European 
counterparts. The figures show 
that in the decade between 1963 
and J973. industry-financed 
research and development in- 
creased in all OECD countries 
except i lit- UK. in real terms. 

In Britain the investment rate 
in tlm vital area simply stag- 

nated and ttiis meant that the buying. It is a Httie unfair to 
u JL s position relative to other suggest that Britons will put up 
countries declined sharply, in with any old rubbish— but only 
1963 Britain was. investing in a little. ' It has even been 
research and development at argued that most members ot 
about the same level as West the British public are “ visually 
Germany. Ten years later the illiterate” and this is why they 
U.K. rate was well below those are prepared to buy badly 
of Germany, Japan and France, designed goods. Consumerism. 

ZnaJ ° r tradm « It should be-noted. has only just 
competitors. _ begun to gain ground in the UK 

in some industries the pro- as a lobby demanding the 
portion of resources allocated to 

actually 1 declineS T & 

metals, mechanical engineering. The Americans, the Germans, 
fabricated metal products and the French and the Japanese 
electrical and electronic engin- not accept products which 
eering. The only strong upward have a low quality of design, 
swings have been in chemicals And they are prepared to pay 
and shipbuilding. extra for better goods. There 

It is partly — though not en- is reason to believe that given 
tirely — because of this relative the choice between bad and 
decline in the UJv's investment 8°od design, the British will 
in research and development P 3 ^ higher prices for the latter 
that Britain's product design t0 °- French textiles, Japanese 
standards have failed to cars 311(1 German television sets 
improve. In 1976 the Design an : Dot necessarily cheaper in 
Council brought out a report on Br ^ ln *h an the ones that are 
engineering design education, manufactured here but they still 
The picture this drew of British ln the UK 
engineering design was a bleak It is also noteworthy that the 
one. upward valuation of the D-mark 

and the Yen does not seem to 
KflOrt have hampered the expansion of 

German or Japanese ' exports. 
All this is in sharp contrast This was one of the points 
to more successful trading stressed by the Prime Minister 
nations such as Japan. Mr. when he spoke to the Society 
Alan Williams. Minister of Slate of Industrial Artists and 
at ihe Department of Industry- Designers last year, 
says that on a recent visit to " It is the well-designed goods 
Japan he was impressed not which the world is prepared to 
only by the high investment P«y for,” he said. “ Of course 
levels in research and develop- we must put new investment 
mem there but also by the con- into plant, of course we must 
stant. unrelenting effort the set more output and produc- 
Japanese put into their product tivity; the prices of our products 
design. He found that in a J 1 ® 81 be right; they must be 
number of Japanes* companies delivered on Urne our after- 
well-co-ordinated design teams Mies semce must be first-class, 
were working on product possi- Bu t that isn t enough. We must 
biliUm up in ten years ahead raak / toat w * p 
and on existing product de- *"“£* Sfljf 

velopments three to five years 

camp timp ln this, country and abroad. 
3liead. At . Another reason for Britain's 

.i wanesc cuMen.s encouHsed d€si reTOrd is 

H«.r designer, and their line sion M fte past few yelTS 
workers to lonsider m . s Research and development costs 
improving current products for ^ designers’ costs, whether 
the Following year. . in-house or outside consultan- 

The evidence that Britain is t .j es> have often been among the 
lagging seriously behind her flrst ltems to be from a 
competitors in product design company’s budget once the need 
and that this, in turn, is having f or retrenchment became clear, 
a dire effect on her ability to An undemanding domestic mar- 
export, is overwhelming. It is made such cuts all the 
so strong a* to make UK indus- easier. 

try's continuing indifference to Lord Brown, in the paper he 
design something of a puzzle, prepared for NEDO, suggested 
Yet there are a number of the mystique that sometimes 
reasons for the present state of surrounds designers in industry 
affairs. might be another factor in the 

British consumers, whether UK's performance in the field, 
domestic or industrial, must He said this could be a result 
take pan of the blame. For 0 f Britain's strong university 
years now they have shown a tradition, particularly in the re- 
distinct lack oi discernment in search area. 

“Research and development 
is regarded not only by those en- 
gaged in the occupation but also 
by many managements as 
a unique type of employment 
quite different from production 
and marketing.” he said. u This 
leads to- the assumption that 
while it is possible to allocate 
specific tasks within time tar^ 
gets to the latter, such an 
approach is not possible with 
research and development 


“If, however, it is assumed 
that it is unreasonable to set 
product design tasks in terms 
of parameters of need and time, 
then there is no real possibility 
of product development match- 
ing the overall future strategy 
of the company. Such failure 
will tend to reinforce the idea 
that co-ordination of the efforts 
of designers with those of pro- 
duction and marketing depart- 
ments is excessively difficult" 
The whole question of design 
management is a vital problem 
for British industry. All 
too often this is a thoroughly 
haphazard affair, and as Lord 
Brown suggested, it is fre- 
quently felt that it is hard to 
apply ’ management skills to 


As a result, good design man- 
agement tends to depend solely 
on the initiative and far-sighted- 
ness of a company’s chief execu- 
tive. If he is interested in en- 
couraging design and in co-ordi- 
nating the design function with 
those of production and market- 
ing then the concern probably 
stands a good chance of being 
highly successful. But the 
figures suggest that far too 
many managing directors do not 
have the necessary vision. 

Furthermore, it can be argued 
that in all but the smallest 
organisations it is unreasonable 
and inefficient to expect one per- 
son to take full responsibility 
for design management Com- 
panies of any size should have 
design managers just as they 
have marketing and production 
managers. There should also be 
a Board member who indudes 
design in his portfolio so that 
it is always considered at top 

Design should also play a 
more important part in manage- 
ment training — at present it is 
often left out altogether. At 
the same time the education of 
industrial designers— those con- 
cerned primarily with a pro- 
duct’s appearance and ease of 
handling — and of design engin- 
eers could also include some 

element of marketing and pro- 

The UK has no shortage of 
people with the talent and skill 
to invent new products and to 
develop existing ones to the 
highest standards. And it is 
clear that this is something of 
which our foreign competitors 
are well aware. It is also true 
to say that while the overall 
picture of British product de- 
sign is grim, there are a num- 
ber of companies, small and 
large, which have earned excel- 
lent reputations for their de- 
signs, both at home and abroad. 

The Design Council’s awards 
and its design index of British 
goods are witness to this. Since 
it was first set up the Council 
has worked hard to boost the 
best in British design. Up until 
the last year or so it has been 
a lone voice, listened to mainly 
by the converted. 

One of its major tasks now 
must be to increase UK indus- 
try’s awareness of the impor- 
tance of good design. With the 
Government at last giving a 
stronger lead to manufacturing 
concerns in this field, it is pos- 
sible that Britain will begin to 
realise her design potential. 


The first piece of 
brewery equipment ever 
to winaDesignCouncil award 

The Alumasc Hy-range system was selected by the 
Design Council for its innovation in design, use of materials 
and many practical advantages. Those features add up to some 
very real benefits as many people in the Brewing Industry and 
licensed trade have already found out. Because unlike con- 
ventional dispense head systems. Hy-range makes it possible 
to tap and reseal a keg ready for operation in a matter of seconds. 

The Hy-range system is carefully constructed from quality 
components to look smart and functional.yet stand up to the 
rough handling bar and brewery equipment has got to expect. 

That s why more of the country's leading breweries are 
getting converted to Hy-range every day. 

Write or phone forfiirtterinfonnation : 

Alumasc Ltd., Burton Latimer, Kettering. Northants Wfl.5 5JP. 

Tel: Burton Latimer £121/7 Telex: 54686. 


I 'll I Mil I ; I n i M I I : i i ii 

t~ ttt ~t i — n i t ' r i i 1 t r ■ p 1 ~rr 

1 — |— 1 — r Tf 4 - -H— -rrh i n T v rr 

i n^i^ii^-r^TT-r-rrT-T-i — rr 

' . : TTTi ■ I 

i I l 1 ; • V 

■ M M ’ . I 

’ 1 1 -1 i IT 

-U- 4 1 J- ggwroi J..; ; -j-L 
-r-i- 4 1 ' -1-4—!— -4— l— 1— -TX 

TT 1 , . ■ l ! i I I i 



'■!./ ! ■ 


Why innovation 
is crucial 

"Bn mm's dcsitm expertise 
must be «M>rrfuwif*’tf irifh ihe 
industrial .strategy ii hi' are 
in improve the country's 
iirilNXlrinl roiMpdilitviiMS." — 
I-rn- Varlvy. Sccretaru of 
.Sfur# 1 for Industry, May IS, 

To which tin* visitor from 
Germany, Sweden. Switzerland 
or Japan would reply: “Well, 
ves, ol coiii'JiC- Bui what s new 
In that? WVve realised U for 

Tin* problem, of course, is 
that it is only in the last year 
or mi that the crucial role of 
design — lioili engmeerms and 
what has become known as 
"industrial” (largely aesthetics) 
— has been realised in Ihe 
corridors oT political power. In 
industry it is still largely 
unappreciated, or paid little 
more than lip service. So state- 
ments or the obvmus from Mr. 
\arlcy are all too necessary. 

As with so many other facets 
of modern industrial life, we 
are once avails the major excep- 
tions lo the European rule— 
ami we pay the consequences 

month afler mouth, as wo sur- 
render one product market 
.ifier another tn foreign compe- 

The failure, even now. to 
umler-iaml the maswtude of ihe 
problem attests 10 our blindness 
j,i tin* oulsidi* world. Take ju.-l 
■ik l.w decade (though U«e 
were nsiblc well before 
rhJ! '- A l least key inter- 

national trends should have sni- 
fi o*ted the urgent need for 

better engineering and product and, of course, its ergonomics 
design in British industry. The and appearance, 
trends have been dissected and Anyone who has compared, 
discussed bv economists and say. domestic electrical appli- 
poliricans alike, and aD sorts ances in the UK and Germany 
of other consequences drawn, will have long ago come to the 
hut somehow design has seldom conclusion that the British prob- 
ratccl a mention— let alone a lem is generally one of cheap- 

i bon "hi ness * m 1,0111 qu ^ Iity “®- 

m First the continued success Last year semi-academic res- 
or German and Swiss exports pectability was added to this 
desuiir an almost incessant line of argument, for British 
revaluation of the two countries’ engineering os a whole, in a 
currencies against all their study by the National Economic 
foreign competitors— and conse- Development Office. It concluded 
mient complaints from German that “the UK tends to him out 
and Swiss industrialists that products of lower unit value 
their export markets were than Germany or France” and 
about to be ruined. After a that “the improvement in price 
decade of “crying wolf” many competitiveness resulting from 
Germans in particular, claim devaluation by itself does noth- 
still to be foxed by the reasons ing to reverse this trend. To 
lor their continued success. tackle this problem requires 

The reasons, all fall into the separate action, which is what 
cate**orv or what economists call the industrial strategy is about” 
“iionWice competition." Keep- • The second factor which has 
iiv* to delivery dates is one of been obvious for several years 
them-— a messaue that has now is the increasing tendency of 
been drummed into the con- the less developed countries to 
sciousness of every British compete with the long-indus- 
businev-man. maiised nations. What is only 

Of ar least equal, and prob- now becoming appreciated In 
ablv much greater importance British industry is that this 

particularly- if experience in challenge will not be confined 

the lext'ic machining sector to mature and basic products 
proves -cncraUy applicable: see like textiles, shoes and steel, 

I lie special article later in this hut is already growing in 
survey— is ctervihing that goes “intermediate” products (ships, 
under the. heading of “design”: cars and basic machine tools, 
the product '« rusl-effcetiveness; for instance), and will soon 
Us reliability: it* suitability for even develop in relatively high- 
..... ; oh ant j t he market at which Technology items (electronics is 

ii is aimed: its marketing back- the most obvious example), 
up. , ls ease of maintenance; • Add to this the third factor. 



Presentedfbrthe fnter-City 125 High Speed Iraifv 

If you want to know 
the reasons why the Design. 
Council gave us an award this 
year, just catch the Inter-City 
125 between London, Bristol 

and South Wales or London, 
the Northeast and Edinburgh. 

British Rail 

The badiboneofthe nation. 

we knew we were on the right track. 


Financial Times Wednesday May SI 1978 


Analysing failure 

. . . and some of 

the successes 

> MOST COMPANIES are all too these firms produced excellent experience in textile machinery As a result, the advent of were more carefully thought I I | L, _ II 

/ ready ro forget their design machinery which was superbly design. Much of the technical open-ended spinning' caught the out in the U,S. to make the 
failures — usually because the well manufactured— often better change embodied in the company without the necessary handling of components faster , . up. j s lmnorttnt m 

• managers concerned have no than were my own machines— machine was unnecessary, the technical resources to develop and easier. On a more technical TH T,.r .T 7 w i it1 4 e doubt, either at “Designers must have a or company uie p * u 

wish to prolong the agony or but the trouble with it was design was to overdose its own system. level, the composition of the ahmnd that British thorough knowledge of the well. . . 

draw even more attention to that it had changed little since tolerances, and the machine complete contrast piatt melal used ^ Saco-LowelTs cast ®L .J!. ' rns have manufacturing process itself so It has been^ said ® ar 

-the loss of face they will have the 1930s." Dr. Rothwell com- consequently suffered many intera^icmaiin theTO main- components was found to allow /fmSe really well that theyknowwhat the impli- is more than just a useful aid 

already suffered. It is memed:" Clearly, the lack of breakdowns in the mill." «? r 52 IJSS their designs will, be to v-mercu, = 

friwi it. sequence of their inability and/ of different managers at research; as s 

It is for this reason, rather or unwillingness to innovate." "different levels having a hand to respond i 
than because it is a particularly In the full report on his in the disaster. Czechs introc 

unsuccessful industry— the investigation. Dr. Rothwell cites Perhaps the most damning of first open-end 

truth is the reverse — that the a second firm, which had pro- all Dr. Roth we M’s statements is in lfl§7. In 
British textile machinery sector duced very little real innovation that a number of the failures Saco-Lowelff ] 
offers an iHumina-iung case since 1945, and which saw its be studied “were developed in 

Study of the causes ol success traditional markets being eroded almost complete isolation from ArjjjlYcic 
and failure in product design, by its main competitor’s more the user" At a conference ■ rxuai J‘ 3 *.3 

Not nniv have » dozen com- modern machines. In an attempt earlier this month he added what makes the Platt Saco- 

a uutcii mm ,Tc Tvmsimnir morfrof i th.« t ,, , - 

Including tighter cost control product design is provided by stfi . manufacturing some- hare greatly enhanced their 
on the shop floor; a more the Chubb group. This is a UK ^ nob{1(1v . W anted to buy appeal tn customers, 

efficient wages payment system; owned and controlled group of and . g whcr ‘. u ie marketing Ernest Scragg and Sons, an 
and the organisation of work security, fire and safety engln- . arfi impi - irtan t. in our 40 engineering company that mam*, 
go that it requires fewer people, eering companies. The group is !L m nanies the design, market- factures machinery for the 

Yku± iiu Hunuuiift r«Aji v uit? piox now uucKens, since r. * 4 r A it j , siage wnue me luauafiiug u# i - -"77 

independent researchers, but of deve i opin ent. Within a shnn ket, while others had taken no j n the last few months Stone- Sma J ,e y— * point borne out computer controlled tellers and t()r Qf ^ ton cern acts as Council award and an RSA 
one of the industry k leaaers. ttme it wa5 out-selling its com- notice of the response to the Platt has revealed that in other month by one of cash dispenser systrais. fire re j eree when it is necessary." Presidential award for design VAMUftHl 1 hflfAn ll s ■ i • s _ i _ a . . . Pint? Vonn T fltmll'c inn atpnAld nnCn . ■■ 

r ^veil s top engines and airfield crash AnoVw much smaller, management It has been 

igners, Mr. R. Shaughnessy, trucks, breathing apparatus and desi _ n winning concern described as having an 

f surveillance systems— among ^ Grant instruments of . Cam- “ astonishing record for tech- 

"thJ other th,Dgs - bridge.,- This company manu- nical innovation " and it is dear 

p To date the group has won factures laboratory equipment that the emphasis the company 

machine which was birth better aroun d, the tables were com- 28 categories of problem area ^ lab^ productivity of SLtm product T() datfi ^ gj^p has won factures laboratory equipment that the emphasis the company 

and cheaper than its predeces- p i e tly turned. The company was within the overall innovation its British equivalent it deter . wav cost savinss four Council Awards j n the field of precise tempera- places on product design is 

tor. Its story provides an in such a strong position com- process; the others range from mined exhaustive analysis and hS ricsiS had beS P lus “ RSA Presidential design ture control and employs under having a big commercial pay-off. 
unusually searching insight pare d with its competitor that control of R and D. through that key factor was not the Pomhin^ in one suh-assemhlv award and the Duke of Edin- ioq people. It exports about 40 it is estimated that about 
into the management nf design the latter was manufacturing 20 after-sales servicing and opera- qualitv 0 f Labour nor -the aee X!r another Mr tstamXwmv burgh's design prize. And as per cent of its production and 35 per cent of all the; texturing 
In a complex manufacturing per cent of the firm's orders tor training, to more general of machlne t0 ols_two' of the told how the aonUcatioo oF one of judges pointed out. i ast year its annual sales were machines in use throughout the 

industry. under licence. 

The sector’s suitability as a 
design "case study" is further \fiinv 
enhanced by the existence of ^ J 

process; uie ouiers m | ned after exhaustive analysis and better desien had been P lus “ tUaA **resiaenuai design ture control ana employs uuaer naving a oig comnierciai |iaj--un. 

control of R and D, through that th e key fartor was not ^ bined = ne s sub . as sembly award and lhe DuXe of Edin " 100 People. It exports about 40 it is estimated that abput 
after-sales servicing and opera- qua ij tv of' labour, nor -the age after another Mr Shaughnessy bash's design prize. And as per cent of its production and 35 per cent of all the.textunng 

tor training, to more general of machlne tools— two' of the told how the annlication oF one Mt of j ud S es pointed out. i as t year its annual sales were machines in use throughout the 

policy questions such as pro- most widelv-quoted reasons for "value engineering" techniques the group’s design policy seems running at about £0. 9m. world have been made by 

duct specialisation and pricing Britain’s poor industrial per- bad enabled the British end t0 have b™ u S ht its “ own re - Sengs, whose expert sales over 

P °rStF * ori n with on* or relative skills of his company to reduce the ward in ™ o[ “ a ^“ ira T b . le A worpriPW lhe last decadc h ? V€ anlount ® d 

Getting to gnps with one of in pro duct design. _ cost 0 f its latest design by 27 business performance. The /IWdlClItM t0 a b ou t £l22m. Approximately 

a survey nf the reasons why Dr. Rothwell’s study of the the most contentious questions^ •■■ Th e dfrert* labour muire. Der cenL comoaredwith its ' ftterestiiig question is how , distinguish 90 per cent of all its production 

-S' £%JSS ,r JfflS •e-?- «» «»" - -J?. FSSS& 

companies hough. foreign examples .-hose obviousness relative importance of radical ^ i-^/'^eenTe'mo £T3S " ^ooTSSScS ‘A“ P™-*-. design. “ ("ran" 8 sags’™ ^ tSTSSSu process of design- 

SSn rVZ “”,T ffEJ* ta „ ^ S 2‘,'iSSSS dS^SSSS formance." Most of . I«a genera, poite is to marite. SSS’ JSS, Ft de^n' «"«.>, _*!&* 

• *W___ ... - s— nv Tfnihuioll I’luiiuiw. ill ums Lnjc W'.a. luiiuauvc. must ui uic ieuul- iia RCireiai m nearest approac/l lu a aeSLUn — ei — ■ . .7. , _ .* 

TO machinen” wi ava^ble I J dirim ^ frraea^ S3 whll? rec l uir einent was' 70 per cent Uon was on labour (whose costs "products of the highest pos- policy is the directors’ efforts to obviously calls for skill and flair 

^tSJds of the reasons for ° v . , S2“ ororoeritv of teS of *• Brit1sh - in aTWtheT ^ were halved > rath * r than sible « uality ‘ t0 prnvide ^ cultivate design awareness and on the part of a design engineer 

tad •“Insufficient technical re- ^ ^ cent The contusion material (cut by 18 per cent), most -efficient service and to a seD5e of 6csign res pons ibillty or an ‘ndusirial designer and 

“ urces a,located 10 the project- ?. " wa * that years of operating in The machine which the new maintain these standards by throughout the corapanv. It is this is something for which com- 

£ C T a rhinSlln q Other Secretive tov « tor - Potential ISmi a ^-income economy had design replaced had been over- continuous research and ex- {J^Sre impossible to list par- P^ics cannot plan in the con- 
iLd^tn mark ct too small for oommer- /iLnSSSn SIS forced ^ US - management to engineered. Mr.' Shaughnessy amination." In order to achieve ticular activities in which design vential. managerial sense. It 


market too small for oommer- 

words to its derien rather . ... „ more radical innovation has , «™i«seiiirni ulu /‘ ticuiar acti vines in wnicn aesign , 

than to ““ viability. t0 en sure com- lay eTeat stress on economic said. This was because the these aims, Chubb tries to poIicy makes a contribution depends on a shrewd employ 

?r deliver? dates •“Lack of R and D re- Ss‘ ISSte™ survi?S: predecessor had been designed relate each aspect of the total E eca ^ we believe that this ment Policy and the ability to 

There is no doubt whatever sources. Inadequate distribution radical innovations would often ™ Mr .' -^ dward Smalley. Stone- too quickly: from design con- design of a product to the user, awareness and responsibility spot talent, either inside or out- 
abouTtte importance of co^d and after-sales servicing facili- be fol M by low series™ P,att s managin ® directnr - cept to cora P ,ete detail in only t0 th ^ environment in which it must be applie d to all our pro- side the organisation Both 
product design to the suLss ties. Unreliable operation in the dependent improvements in the 2“i EP .!?! ^ 2** . a " d * ^ our surroundings and the Grant Instruments and Gbnbb. 

machinery business. The author 

uroaucr aesien id me surarss onrenaoie operation in tne denendent imorovements in the *** . . ... , aucts, our surrounaings ana me — .77* 

If companies in the Textile mill." prSducL impr ^ verae U lQ Britain is to design something Four or five years which was the market in which it will be we use . We are sma il for example, rely on outside de- 
co P nies m ne texnie P iiiuctntinv hi<s the*!*. Dr and then hand the des1gn to the often necesaar y- Tb e enl »re sold. The group retains a pro- enough not to need an elaborate sign consultants and it has to be 

•Ignored changing market _ Illustrating his thesis, Dr. Droductidri and )et thpm nrnress f nr the new machine f-«inn a i ripsi™ mnauirant who D . ug V n i. :! rememhered that although 

firms which have been “ tech- farly pertinent for general From about I960 onwards, for be done severa ’, timeTbeforea with the design engineer " Mr The group ’ s desien poIicy was develop or modify a product 
nically progressive’’ which managers. Dr. Rothwell's ex- various reasons. Saco-Loweii’s d Psien is fina! r v ’ untU recently administered by and- the consultant remains part 

nicaliy progressive’’ which managers. Dr. Rothwell's ex- various reasons, aaco-ixjwen s Hocien i« finaiiv adnnfoH ** ch,„ n h n .»„ receuuy auuimiateiru uy auu-uie cunauuaju muaiva f°«i ~ , 

sumvfd and prospered pl , na fi„ n 0[ .ha, taj behind - teehnieal development - “T had Zt 'Z i™,,, »■ Peter Windeler Mr. Winde- of A. team even after SJ'StSsA SK 

during the post-war years. the blunt “reasons for failure" department was trans- cast ' comnonents and then *v CT , n t li eme u l ,er “ insistent that product it is. in production. In other »s tn gi\c nip priority loineir 
In a recent article in the is illuminating; “Reasons why formed into the “ applies-. Shined them In America Sie* tn' desig11 musl not be confireed aspects of design we rely on the d *® i (1 R " and ^deskn 

Journal Management Decision, management ignored feedback tions engineering" department, they prefer to fabriratc^to minagemSft TTiis is a s with the cosmetics of a market- design conscience of the ,ndl ' T anda Tis peraeates throStt 

Dr. Rothwell quoted the chief concerning obvious changes in It was concerned more or less stamp and to roll metal^-and to Sct If such extra nr oof w?re ,n l operat, ? n -? e , P ackaging Jidiml combined with a general 

executive of a highly progres- market requirements are un- exclusively with product avoid machining If they possibly Si i S 31111 genera] aesthetics— especi-" freedom for anyone to criticise their organisations. One aspect 

s;ve UK company, who had been clear, tit has been suggested improvement, with no signifi- can.” ^ ^ 2S22!^ISS J JS 31 ly ,n 3 general engineering the design implications of any- ^J c h, s dpign consmowness 

mvnlvnfl in u-tnMinn un tka Hail fkat . i ,L. ... n.nt dav,lniu«aa hflina «■'. in... j. management is one of the few Lnn»™ nba rhuhh- nno aico'n n'Arif irpAcnpotivA nf shows itself in the fact that all 

What all three of these 

s:vp I'K company, who had been dST’.llTi bST«5i.Sd with EF — “ Stona-Pl.j,-, top ally To . genera] engineering the deaign ,mpi.cation S of any- ^ ‘“J"* 

involved sn winding up the deal- that sheer obstinacy at the top cant developments being under- Stone-Platt also discovered 5 tSTi!? 1 concern like Chubb.- one else’s work, irrespective of shows itself in 

mgs of five former competitors is the explanation). The new taken, and no long-term re- that the jigs used to hold LrounSv JXZfiL n til "Good design should rightly status. We -believe this is much th ^. f 

:n just six years: "Most nf R and D team had no previous search performed. components during manufacture 2™ * th refer to such Ai nes as nroduat more effective than formalised a _^.l?f®F^ ntlr maaa B etheir 

• 'Innovation in Textile Machin- p J. I 3CI^ 1 am ^,^. nd 2?’ JK Wr • r 7 _- l rn, anman Perhaps the main lesson that 

V en/: Some Significant Factors in Sa'nISSipit h« ?n rlSu insmimSlrf nther companies can learn from 

/ '■ Success and Failure. SPRU Occa- des^nwnasement has to mean director of Grant ^stniments thpse ^ee ^ histories is that 

/ ; - •• • ? • • sionaI Pap « Series. No 2. June ^ "££?* hT^I* * S ° s ?-^ sses h th ! unpo i rU - ,lce of good product design, which 

/ ■ • m 1976. Science Policy Research ,n « and design sections of a dose liaison between designere. seems to be strongly correlated 

§J\iJ - Unit, Mante'l. Building. Falmer. pe °i2! and ’ . .’“to commercial success, relies on 

Brighton BN1 9RF. Sussex. Tel: Je development of a new pnv Grant s case the company * the attifude oJ mind of top 


duct idea or on suggested suppliers of plastic injection 

I modifications for an existing moulding tools. He adds that 



design awareness in ail aspects 



Design Council 
Award 1978 

fev ; '<:3 

Ti^r«jK { 




F-yA ■' 

Another successful product 
added to the superb range of 
10,000 branded top quality 
hand tools manufactured by 
the James Neill Group. 

Post Coupon to: 

Howard Morris, 

James Neill (Sheffield) Ltd., 
Napier Street 
Sheffield SH8HB 

I Pleasesendfurtherdetailsaboutthe Micro 2000 and toe 
! 32 pagefiiilcolourJamesNeillFreeToolKItRannei: 

I Tools from James Neill • 

the recent slowdown In world 
growth and trade, and every 
thinking member of British in- 
dustry and government should 
conclude, with ^4r. Varley, that 
; we should put more resources 
into knowledge-intensive indus- 
tries which manufacture pro- 
ducts of higher added value; we 
must move up-market and pro- 
vide high-quality goods of 
superior design and specifica- 

This is exactly what the 
Germans, Swedes, Swiss, 
Japanese and others have been 
doing for-tryears, and will be 
practising even more in the 
future. For Britain, the trick 
will be ai least to match their 
efforts. Otherwise, everyone 
in the country will suffer: 
individuals (as both workers 
and consumers, not to speak 
of taxpayers supporting "lame 
duck" industries), together with 
the companies they work for, 
and the economic wealth of 
the country as a whole. 

If most of these lessons are 
so obvious, why were thev not 
= learned years ago? To answer 
i this is to provide some of the 
clues to the sort of cure we 
should now be administering 
to ourselves. 

The answer contains at least 
half a dozen elements, each 
; warranting a study itself: 

1 — Britain's imperial back- 
: ground made it reluctant, even 

into the 197fls. tn face the need 
to be competitive on the world 

2— To be involved with manu- 
factured products, and engineer- 
ing in particular, carries a low 
status in British .society^ even 
in the nation's boardrooms. 
This is a result nf our imperial 
and class-conscious background, 
and our educational system. 

3— The term "design” is still 
generally understood to con- 
cern a product's external 
aesthetics. This is partly the 
fault of the design world itself, 
where the accepted sense of 
"product design” seems to be 
limited to the shape and out- 
ward appearance of craft-based 
consumer products. 

4 — Britain’s system of indus- 
trial financing imposes a short- 
term, low-risk, view on top 
management which is com- 
pounded by managers' own 
social values ipoint 2). Indus- 
try's long-term capital consists 
largely of shares, on which 
ever-increasing annual divi- 
dends are.- expected to be paid, , 

so that companies tend to 
maximise their short-term 
- profits at the expense of the 
long-term. The need \& keep 
share values high, in order to 
finance takeovers, or to boost 
a firm's borrowing power at 
the hank, is an additional con- 

In their own social contexts, 
the much less stock market- 
based financing systems in 
Germany and Sweden are far 
more conducive to the long- 
term view which is necessary 
if a company is to indulge in 
a thorough process of product 
innovation and design. 

5 — Against this background, 
the failure of several inade- 
quately-managed attempts at 
prestige projects in the 1960s 
and 1970s has created an 
unjustifiably "bad risk" image 

for innovation, in both industry 
and the City. 

6 — Falling profitability 
(thanks in part to Government 
policies), and the unpredictable 
rates of inflation over the last 
few years, have increased top 
management's reluctance ' to 
invest in the more obviously 
risky of its various investment 
options — namely product' 

As a result of all this, the 
competitive state of most of 
British industry is weak, in 
some cases parlous. 

One of the most depressing 
yardsticks Is our rate of ino- 
vation, as measured by the num- 
ber of patents filed and by In- 
dustry's expenditure on research 
and development 

It is true- that this gives only 
& partial picture, since it does 
not (and cannot) distinguish be- 
tween R and D which produces 
new products, . and that . which 
produces improvements to exist- 
ing products; many' of our cb'm- 
petitors 1 design successes have 
been achieved by this second 

■Nevertheless, since most com- 
panies would classify expendi- 
ture on, say, a new drive for an- 
electric motor as "development" 
the national R and D statistics 
can be taken as providing some 
sort of measure of both types of 
innovation: continuous (largely 
product Improvement), and dis- 
continuous, or radical mew 

An analysis of official inter- 
national statistics shows that 
there has been a "precipitous 
decline" in the UK's rate of in- 

dustrial research and develop- 
ment over the last decade, com- 
pared with that of other in- 
dustrialised countres, “ in the 
words of one of the leading re- 
searchers in this field, Keith 
Pavitt of Sussex University’s 
Science Policy Research Unit. 

This has come on top of its 
"chronic under-investment in 
skills and technology ■** over the 
whole of the 20th-century, he 
argues, quoting -a mass of in- 
ternational •_ patent statistics 
which show a dramatic decline 
in Britain's share of new 

Not only are we not spending 
enough, we are spending it on 
the wrong things; “military 
and prestige-type projects 
(such as aerospace) rather than 
the technologies which matter 
most," said Mr. Pavitt's col- 
league, Professor Christopher 
Freeman, in a widely pub- 
licised lecture last week. 

“ Not only Is the scale of 
German and Japanese Indus- 
trial R and D now' twice as 
great as pur own in absolute 
terms" said Professor Free- 
man, "it is also directed far 
more to those- industries which 
matter most in terms of world 
trade:, machinery, electrical 
goods, electronics, instruments 
and chemicals." 

So industry is not doing 
enough to promote more innova- 
tion and better design, and the 
government is. still encouraging 
it to spend'too jnuch on prestige 
projects, while neglecting the 
more remunerative' ("though 

nevertheless complex) . bread 
and buttef. What should be 
done.- to sort out this conun- 

Reductions in taxation and 
.bureaucracy doubtlessly have a 
part to play, but they would 
nut remove- the basic hurdles to 
more innovation and better 
design in British industry: the 
low status of products, and the 
people who work with them; 
and The reluctance of managers 
to take, on behalf of their com- 
panies, the financial risks which 
are implicit, in designing any 
new product. 

In this desperate situation, 
government incentives are 
clearly needed. Two major 
policy reviews are nearing their 
conclusion; the Corfield Com- 
mittee under NEDC auspices, 
and : the - Department of 
Industry's own internal study. 
The very least one should hope 
for is a batteiy of new risk- 
sharing incentives for industry. 

£f industry is to make the 
best of any extra government 
support, many companies will 
have to- clarify their lines of 
responsibility for the manage- 
ment of product development 
and design. Identifying the "R 
and D" function, from top to 
bottom of the organisation, and 
relating it effectively to 
research, marketing and manu- 
facture, will have to be one of 
the key preoccupations of 
British management over tha 
next few years, if we are to 
pull the fat out of the fire. 




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For All Details 





^saacfal Times Wednesday ^lay 31 1978 


Design Council 
Award 1978 

Design Council Citation 

•V The Ford Fiesta was given a Design 
Council Award because the design 
embraced, as a matter of policy, a detailed 
and calculated attempt to reduce the 
maintenance and repair costs of the small 
family car. For the first time a design team 
has put cost of ownership and ease of 
maintenance high on its list of priorities 
instead of much lower as has so often been 
the case in the past two decades or more. 
This “ab initio” approach has set the pace 
amongst competitive manufacturers both 

in the UK and abroad. Indeed, evidence of 
■the past year has indicated that other 
manufacturers are following the example. 
Furthermore, thejudging panel couldnot 
■find any characteristics of the complete 
^package” which did not meet the overall . 
criteria necessary for a Design Council 
Award. Thejudges considered the design 
philosophy of the Ford Fiesta to be a 
significant and praiseworthy contribution 
towards the requirements of contemporary - 
car manufacture and ownership; 

Judge for yourself -test drive the Ford Fiesta today 

Lubricated for life suspension 

One-piece wiring loom reduces the 
number of connections to a minimum 

See-through battery, brake fluid 

and windscreen wash reservoirs 
■a . 

Rear brake lining wear check 
without removing wheels 

Maintenance free 
rear wheel bearings 

No oil or filter changes required 
between sen/ice intervals 

radiator expa nsion tank 

All engine parts designed for 
quick and easy servicing 

Simple headlight adjustment 

Lubricated for life steering system 

Lubricated for life ball joints -' 

Front disc brake wear check 
without removing wheels 

One-piece exhaust system — 
replaced by undoing justtwo bolts 

in passenger compartment 

Fully automatic clutch adjustment 

Maintenance free 
front wheel bearings 



Financial Times Wednesday 3»y .*1 


an incentive 

DESIGN AWARDS are meant Industry, says it haps. to. im- Council's register of design 
t» encourage good design but it prove product design ''in five expertise which; lists research 
has often been argued that they different ways. It provides organisations, specialist 1 cora- 
are the kiss of death for the direct advice and- assistance -to. panies. universities, and' poly- 
products and companies that manufacturers: it publishes in- technics, design consultancies 
win them. formation bn design; it publi- and individuals. The Council 

Research carried out into cises outstanding achievements claims that by matching the 
winners of Design Council in British design, through "the right technology- &r skill to a 
awards suggests that this argu- presentation of awards and problem— -through the use of the 
ment is nothing more than a through its own design index; register — it has helped to save 
somewhat spiteful myth. For it it encourages improvements in many companies valuable time 
was found that award winning the training of designers, and it and money which would other- 
products sell faster than others tries to make schoolchildren wise have been wasted. 

In a company's and the more interested In design. 

awards themselves help indus- The Council’s advisory work fTraniPWnrK 

m mi i ic ivrnr-pmr-rl with thi» 1 trsTiirfpr • ” wl D. • • ■ 

trial concerns to sell abroad is concerned with the ■ transfer 

and to sell in new customers, of knowledge from •“ where it is The Council’s engineering 

Overall, the winning of a Dp- available to where it can be field officers operate within the 
sicn Council award has a good applied to make better goods.” framework of its official Design 
effect on staff, on customers It has a field force of 22 Advisory Service to which only 
and on foreign buyers. advisory officers, 14 specialising engineering companies may sub- 

These research findings are a in engineering design and eight scribe. At present over 200 
hopeful sign when it comes to in industrial design. These companies are -subscription, 
considering bow better design advisers visit companies members and the Council- has 
can be stimulated in the UK. throughout the UK to help in. decided : to try to expand: the' 

At present the body chiefly res- diagnosing design problems and service. - 

ponsible for promoting higher in finding the right people' or It should be pointed out that ' The Sinclair Microvision, winner -of one: Of this 
standards in this field is organisations with the although the Council has in- • rj/ear’ff Design' Council a wardsr,-. epitomises the need 
the Design Council which knowledge, skill and experience eluded engineering design . 1 to combine Cfood aesthetics with successful engineer - 
approaches its Herculean task to solve them. Altogether the among its responsibilities- since desian - 

from a number of different advisory nfficers make some 1972. it- is only just beginning . y y * ^ ^ ^ b ^ ^ 

angles. 2.000 visits to companies each to lose its reputation in indus- The plan to expand its engineer- Black and Decker, Chubb,- Con- CoUncirand"bf*the*woric "oFthe 

The Council, which is spon- year. try for being preoccupied with ing design service is therefore cord. ICI, Ingersoll, Philips council, 

sored by the Department of The advisers can call on the craft-bascd consumer products. -, of considerable significance. Electrical and Wolf Electric 

respondents referred to this wholly or in part by outside de- 

exposure. Either way the result signers. . t j ve management of product 

is the same.; A Design Council The Whole s H rve ^, a desisn scarcely featured ip the 

award and commercial success tremely ehcouragiog 33 judges’ citations at ail. although 

go hand in hand. Exceptions to the ' Design Council is ■ ^ ^ hp face of it ^ was whet 
this exhilarating rule exist bur cerned but a number of awards were ail about. As 

are few. ' hav © to *>« eQtei „ ' . f V_ It fhaf it happened the award winning 

C° 0 S t0 a w“rd s 5U wre 

If you’te looking for Product 
Innovation, the answers to the 
Questions of Performance and 
Good Design in Action -here’s 
the bodf that satisfies ■■■* 

- i 

Whose h the body ihd satisfies ? 
BooSoy s. Of course. Whdbread & Co. 
Lid, has won rhe Brifnai Safety Council's 
covtsedSAFETY SWORD ~ 


J For b new fieef of Toucher drays. This is 
r Ihetop award of ibknd, given for 
[ ouUIttidbg contrbuttoiu to rhe 
: mprovemenf of safety n British Wusfry. 
£ This standard Tautfiner features including 
t Ihe patented loa^eoriagcuiieMii and a 
( darned specification developed in dose 
\ cooper aten with WhMiread Transport 
\ Engineers, disfrSxifion development 
| personnel and dray trews have reedred 
t in tfvahide which Whitbrogf s say, Tr's o 
real breakthrough. The vefitde looks 
better, weriu better, protects our 

products better and, above afl,*r icier 
to operate? 

Add (he fact that the BoaBoy- * 
TAUTUNER aba wan the 1974 DESIGN 
COUNCU AWARD and you have the 
incontestable fad, the TAlITtfr'IER is 
•imply rules aheqd'of anything else' on 

Get die Fads about the TAUTUNER 
and oB ih- special unique features for'- * 
yourself. You'D be better 
off. Write at 
phone, today. 

Design Council 
Award 1976 

Bodfoy titrated, ' 
Radnor Pert Estate, Wan Heath, • 
Congieton, Cheshire CW1 2 4QA.' 
. Telephone; Congfatoit 5151 v - 


I^pbgW 14 -# 



Crater the pravliient of the Health & Safety at 
Work Act 1974. end the Factories Act. 1961. 
the Atrstroam inD-duu bofmtt has bean 
ap pr oved by the Health S. Safety Executive for 
wa under (ha IdIIooMk regulations: 

■ Grinding a! Metals [Misceflarwous 
bduttnuj Special ReguUbont, 1925 and 

■ tree and Steel Foundries Regulations, 

■ Non-Ferrous Metals [MeW ng end 
FMndbrtJ Recidathms. 1962. 

■ Pottery (Health and WeUn] Special 
BafOWom, 1950. 

■ ShtphcMs-c »td SNtHltapairinf 
WepdaHens. 19WL 

YWeoother -and mo ft Important - 
ewtereententtwWntream. already bringhtie 
breath ef hath air to afl dnt-Menmdwrtriea, 
Abetreaoi b tariqise In Ka andthpiapoee 
protective capability: 

■Alfttreamcon tt iytatmTe s inlnimatt 
operator fatigue and maximum operator 

■ it fibers out unhealthy Irritating dust and 
supcfct a cooBitg stream of alr-protectlng 
bmp end eyes: 

■ the hefcnet mett* the impact and 
p ettw a ri o o clauses of BS5240- protecting 
tite head against impact : 
protveutg the eyes and lace. 

Mrctream the protect or-for health and safety 
la industry. 

Raeaf-Amplteei Ltd. Safety Products EHvtstoa 
Bereeferd Avenue. WemWey. Middlesex H A0 1RU. 
-Mephene: 01-903 9322. fetes: 922101. 

Alrstmam, (he art f quo anti-dust helmet from Recal-Ampllvox, has Oam 
awarded the official seal of approval by the Health & Safely Executive. 

For mere WormaBon and the Neme_ 

return tite coupon lodajr; 

FT 31/5, 



Safety Product* Dhiiten, 

B eresfonJ Avenue. WemWevL 
Kddlesax HAO 1RU. 


design awards open doors. Sixty^ aW j r j S ,hmni than at highly skilled at managing theri- 

™ per rent of award winners Jell ™duct design hut it eould^ 

who replied claimed the award- fCrt J „ is that argued that this was<£ 

winning product helped them to th ■L„ w ** r pntries for some than judgment. - 

sell tonew customers. Seventy- feSiSlS" On the other hand, the Con* . 

three per cent said - it helped & t se^ '** current initiatives seem * 

them seir abroad. Sons bf SitiS 

“ One managing director said unimpressed by design awards JJe c ntiubms t at 
the award revealed export —whatever the benefits they I ” ad ^ . of . ! * ■ ia rn Jf. 

potential be didn’t know existed. may bertoi. ;S“ u, ? h „ a '=“ 

Another asserted that design • .-veral Dossible tha the b S iq-S 

awards help exports because the reasons fei* this— aside from the ^a^gmnt of fl.SSin by till 1 

SifStd ahm^droanln Britain: ^ necal Wfferenceto good de- department of Indus iry and thS* 
regwded abroad than in Bntam. g , ^ jjr arg amsa- p . s is set at £->.35m: in add^ 

F ,°^ W ^S! er ^ I tions - One is that the Design \?"\ Q ^ it carne d £1.79tf 
correlation betweeiigood design Coundl^ad made a tiny but ^. car „„ this ilKQrae 

—assuming that-, is what the noticeable >W plb€r of * nistakes expected to rise to £I.9Sta fif 
design awards represent— and in Ife tlme, gi ring, awards to, Jg^-Tg. ' 

exports is profoundly import- or : fn"d®ng, products that have Mr Keith Grant, director b? 
ant; a justification, If one were later proved to have serious the council, is keen that aU* 
needed, of the whole Govern- faults. ' . companies which receiw 

ment investment m the Design Government support for pro- 

duct development should' tfcr" 
given free membership of the* 


Although the Council's Tools. The chief finding of the “ Nar do the *« nefits of Another is that the Council design advisory service. This 
advisory- work seems -to be survey was that 60 per cent of awards end there. Everyone who has sometimes seemed to be would only be a smaH measure 

extremely valuable, it can be respondents said their award replied to the questionnaire said over-concerned with the look of but as the service is particularly- 

argued that only the .- ‘‘con- winning products sold faster the award had a veiy good effect products and with the look of geared to engineering concerns 

verted”- are likely to ' take than competing products. on staff. Two-thirds' said'it had household consumer goods in it could help the Council's image 

advantage of the" help -that is w - tl • . „ a good effect on customers. Over particular. Its London show- among industrialists while alsp. 

on offer. -At present tha UK’s wnung in Dea^i magazine, half said it bad a good effect on rbom frequently contrives to persuading more companies to; 

main need is to make British foreign buyers. Three-quarters give this impression which is give greater priority to design!;. ’ 

companies ■ more aware of the e * h t h ■ ^ rt ^ said if had a sood effect on fine for manufacturers of kit- Mr. Grant is insistent that, 
importance df design. lt is'-here “ at - aesl Sn awards tended ^ corporate Image.’*' chen cabinets but which can the institutional arrangemenjk; 

that n priori fVmnPil t0 winners — or vice n,,.;,!,. 

that Design Council awards, 
which often receive considerable 

„• . ,, Mr. Pllditch's research re- hardly be expected to influence for design in Britain need to 

.vv«xavu. w ««u...a ine suits suggested that the chances the producers of machine tools, be strengthened. He points 1 

pubUcity can have some impact. ^ of prodSdng an award winning This emphasi^on appearances out 7 . lhat w ^f. n f a . M m Pf-W- 

Over the la^ 20 years about f Svitol to^thS P rodurt w 505 S« atl y ®^anced is sometimes reflected in a PP J »« a whple' 

90 companies have won. design n n01 10 weir if a company used trained de- judges’ comments on award F 3118 ® , of fetors arc considered,, 

awards, some of them more . t signers. It was also “ striking M winning products — comments i nc l ud ‘ n E *** financial per^_ 

than once. A total 1 o£ 80 of ■ Perhaps products sril better how many award winning com- that can be woolly-minded In forraance. \et little attentidn. 

these -took- -part-in the study because they get a tremendous panies had used outside consul- the extreme Among the worst is P aid 10 standard of its 
aimed at finding out what effect boost from the publicity that tants. The findings showed that examples were last vear s Royal P roduc t design. He would like 

awards had on product per- surrounds the awards." Mr. over half of all. award winning Society of Arts Presidential the Design Council to be mote, 

formance. Among them were Pilditch said. “ A. number of products had been designed awards for design management, closely involved in this, vetting-. 

. - process— -as an adviser .to 

government If this idea wepa 
put into practice it could .welt 
play an important part in rajiK 
ing industry’s design conscious*' 
ness. ■. 

Another initiative, admittefflj 
on the consumer goods front, is: 
the Council’s plan to form a' 
group of companies,, all with 
better than average, design! 
records, and give them extra, 
help with the promotion of their. 1 
products. This .would apply.. 
particularly at trade fairs. One 
reason for the plan is that the^ 
current design index covers' 

_ mainly Individual products but 

JSS? •^■actumng. b„. - MMa- ^'^-<^1^.^ th* eramt a ^TtSSS^StSSSSf, 

busmen schools one aod he hopes to bn it it. of professionally tfainei and in organisaHon’s mrJoraie Si? compand fuH.rattge^ n 

have failed to pay much atten- operation by ^e endof toe ^ ^To^T^rtis^nti riear' that „ 

My A** 1 ? management evaluators rather than doers, ensuring thar coiCon colo^ tion like'toe 1 

design m the past and this has course wril take a year Or two' This is the main' reason why and logos are used on ill » ' 

been reflected in the nation’s to develop fully and I am still the performance of Mtish “mpany’s nMeSSr. on ii measurte lhe fm^TS 

poor industrial performance, fee ing my -way," - Professor .industry fails below that of its shop and office fronts on its ITarine 

But now a new impetus is bemg Smith- says. Ultimately I competitors. - vehicles and on the tini£rm« ? d • C ^ 

put into design management by would like it to include a nuin- «t»- k +*.- ' * * wnrri h'« it* ■ «« 6 UD1 “ ,r ™ s UK industry is- harder. But *$■. 

some of the people who are ber of specialised topics ' such a managers th *■ r n!I m 6 ' « A ' the ® ecd t0 ^ r ^h > 

teaching it and men like Pro- as computer aided design, in- fZ ^ P /° d S’ mSSKn t 5T«S?*^!J t ^ tI0,l F 0f fc - a P rnduct design becomes steadSy. 

fessor Brian Smith and Mr. depth market research' 'onidue.' it? . dep l fi P* “ forefront .ot ima/.e of this more urgent, the signs .are that i 

Peter Gorb are . attempting to tion central systems and Sject'S^SL™” 1 ^ ^ f w ’ ^ vaIuable lhe Council Will begin to. re- 
define toe skills it requires management ductshave so poor a reputation. are to the challenge, put- oE'W 

while at toe same -time pro- ••• Ideally I think we should ^ * long©*' term purpose of tni . nn ^i?. < ? r ^ T “V 1, l J s ? a somewhat arty. image and 
mo ting the whole concept. be taking industrial desifm n,a ^ a ® e ®^ n ^ teaching to mer ca ^ J t design a much more- signi f i can t 

Professor Smith, first bolder peopled giving SSn dSg ed ^ onaI raaaaeCTnent - ' . • educating ind^on VST 

of the chair of d^gn^manage- management^ course. In pre* JTevaluatore ^S?SK$B EflCaUTagillg 5235^ tbe^esT t* 

ment at the Royal- College officer would hope to have d^ign ™u n g pSpIe 

^hie * tasks oF* any 6 'design on^n^coin^e J“ sin ®* s a^d© 111 ® empires we have not got instead Such minor clouding of the 
manager should be to secure a SaTderi^rs. “ m engil3eering works- we ««©. is something British 

- - - is- spp “ ind r^ “» — importiut « 

insirtent that the IhKSlJ ** .“l ^ ^ ^ et **>«*“ in UK. Yet the 


marriage between 
and technology. 


. happens every time. 

is vitally .important because it 

is one of the major selling RiiTpc 
points. At the same time he XVM1C5 
thinks that most industrial 

;U^JT^! 0n *». 0 - f ' y ? UDg be Si nni “Ss of a consensus on 

-™-ho - ..rained “ftaSISSS British 

5 SsTSSr: -^sSSfSa >- 

c P MSh r nl r? E e in mifiurlS.1 f Pe nnTh e B r“S° m, ™ , i. e ?,T •» e^ction. For 

--j . i s __ 3 number or completely designers, fami urittr tti® auftii .. u *‘» t?ri, ~or 

and marketing techniqueTal l * nuraber ‘ of completely designers, faced with the awful ^?\ gerS ~° r at ^ ©nsuring 

soon as they toin ^"ndurtrial Way * raanagtag P^spect of management desks, 2^ * W ff n,e 

iney join an industrial design siiccessful iy. For will plead first their creativity ^ ™ 18 re ^ )onaW e for the 

he same wav as there ^ *he maxi- then their sensitivity and and by giving design 

^ y ~~ x “ ere mum use of outside design con- finally, at the last ditch their a 

MTS ® ultan cies while Philips at Bind- professional statul: all toehold ^ agendas. 

purchasing. 211 ^ JS£ 'EASS' toa^re ° f SCitntistS ‘ e ^ n * 

be a manager for innovation 0131 covers eers and. yes, accoufl 

bridging the gap between the SUPSZ 

— - vvnemer coUeges of ant or 

. . v t - — . — business schools also heed to 

[designers and the -producers,” «??i« ®i iagerS ' ^ ^ otil c° m “ “But designers have to be P w some aspects of design 
he says. panies haxe proved themselves persuaded and then trained to “ att agement on toear syllabuses 

‘•Design management is Jhe management^ ** **** • m ?°^ g ^ inent r ? , © s - is ever to be 

management of all design 

Otherwise skilled and produet- given the priority that 

resources in a company right ©©““^ed young people will urgently requires withlu^UK 

through from product planning f^ ar H 7 c fh i 1° ? Ut ntrt be avaUable to support and nwnufac curing companies. 

to toe whole design team, which SS^ sncceed - ’ " ' 

should be in at the beginning eenerati 

..a newly motivated 

includes the marketing man toe *T““ “ beginning generation of business leaders 

research and developm^t d e a a nnr product seeking to manage by deogn." 

in^neer. fhepfodurtenS^ £ He accep “ J Mr ’ Gort ad,ls ,h « 

and the industrial dpsipnar Him. industrial designers can- signers are to effectively ln- 
and toe mdustrid designer tom- not aj^ be brought in at fluenre. Industry, they mart 

‘ Design management as Pro- f 1 * 3 ! rtages ° f a P rodn «'« lear « not just about'the tech- 
f essor Sm ith one 6 of ill llZ develop ? ient there may rnques and language of indus- 

tTZntZ* Ultl ^ fir f ^ technical work on such try but about the Atitodes and 
neE^ tbingS as ( . pe J rff>rmance «P«cifica- views of the people with Vhom 

thft in rhP i c H h 0ons t0 ** done - But he {nsists ^ey work. He points out that 
hew mPneif a d ©sign manager "should “they don't have to av«e with 

rihifr hI ma f s t mer ) t be brought into the Boardroom them but without this know- 

chair, he has discovered that it a t toe outset when a company ledge they are nnSelv 

SoSrtoe n ^ edthanheii what -rt P It acWeve^toe 

SSisr;! tt ttsrtfftta 

interaction of the flesigt,’ a nd aorttS ™ pute 

P ^?n-L S tH and *? ment S°^ at London Busi- management although many rf 
° £ n v ess 5 ch0l>l - Mr ‘ Gorb belie7es them do little more than pay 
tMt d f lgn should be defined Up service to it The drive to 
J5? SJ the “ a plan t0 n^e .something, improve design management 

r ^ !! Desisn “a^a^enicnt is therefore standards in manufacturing 

* JSSL tinS^ith hStlTn 1 ?* the planriinB Proems, companies and to provide more 

SSf MMSmJSs b I£. X j - !t is my Proposition that adequate training for those who 
' ld * 1 *f design management should be wiU become design managers is 
relevant interests and depart- —but is not now— the central not helped by the confusion 

n4rfSinna? 1 hL , i l ^ VerriUeS and and aspect of ^ P Iannln B over the meaning of the term 
f ^ process, says Mr. Gorb. writing that exists within the design 
Professor Smith is not yet ran- in Design magazine. “ It is not world itself, 
mng a specific design manage- now the case. beca.use,. in the Design management is often 
ment course of his own but he main, the management - of taken to mean design co- 



design (zin) vt to conceive, Invent; 
fonnukte. cost, Interpra into manu^f^ 
fecture, padage, promote, u anlde^^ 
a project, plan, programme, designer ^* 
xi. esp. one who solves commercial/ 
ialuarial^cjal problems; onewfia v 
aims to produce pleasurable artifie 
for profit deaigniiig a. reWoh 9 
devtlopmeiiL via sketches, models, 
P.roWypes, to worio og dra,v?ing 3 ; % . 
Bupervteicn, consultation; iDri^a-' •- 
ation to production. Colin nhwo thaWt ^ 
Design Partnership offers to create 
a ccKnriiJWted etaaiard of product, - 
Interior & graphic design by a teain ’^i' lf 
combining equal skills in engineer « 
IngiSmarkeang. - • 

Stride, Yawlands, Hoddesdon 
Hertfordshire, EN11 8BTJ 
telephone Hoddesdon 64642/3 
STD coda 099 24 

i . ,i\ 

Per a profitable discussion about our 
®T7los, we would be pleased to mset 


systen 5 of Com pr essed Air “■ ^ ‘ 
Processing fcquipment hos-been • M 
extended and now provides «=WW.--X n 
-for h;-:-, 1 , and 

1 ’ : tflch piping insta iiatjons~77 “T^* : ^fTC-C'j^ r ” 


(p$) C.A. /VOflOfl £A/ LTU. \\ 

' '• -V' ■ 

• _ V* . .pinr* . -f~" 

A rr ( M t Gojn pn n y (1 J||f i \ 


softer sound advieeu 

TJwntor iSandbeq, Brockhank Umited 

• 1^1 sGobhatn 2723 



Financial Times Wednesday Majy 31 1978 


Management Page 


or the largest engineering 

groups in the country, has just 
acknowledged the extent of its 
growth over the past few years 
with a major change in cor- 
porate structure and manage- 
ment The effect will he tn 
devolve responsibility and to 
clear the decks for possible 

Since the beginning of the 
aeventies the company has ex- 
panded rapidly, especially in 
America, with the purchase in 
1975 of the substantial American 
Chains and Cable Company, 

Since 1970 Babcock’s turn- 
over has risen sixfold to 
£656.7m. and pre-tax profits ten- 
fold to £32.3m. Sn the basic 
reason for the structural change 
was fairly simple. As John 
King, the chairman, puts it: 
“What suited seven years ago 
did not suit four years ago, and 
suited even less now." 

There are a number of 
reasons why the Babcock board 
felt it necessary to change the 
■tructure. The one which prob- 
ably precipitated the change, 
although not necessarily the 
most important, is the forth- 
coming merger of its boiler- 
making interests with Northern 
Engineering Industries— itself 
a merger of Clarke Chapman 
and Reyrolle Parsons. 

In addition the management 
wanted to put all the contract- 
ing companies under one 

umbrella. This decision 
resulted from a study Into how 
the company should develop the 
contracting side. The study 
which was conducted separately 
from the review of the main 
structure, noted that the con- 
tracting business was moving 
strongly into larger ■turnkey’ 
projects. So it seemed logical 
to Babcock to put all the con- 
tracting companies, except of 
course for boilermaking, under 
one management, thus strength- 
ening its ability to offer a com- 
plete package. 

These changes would also 
make it possible for the board 
to rectify what it considered was 
the dightly anomalous position 
of Babcock and Wilcox itself. 
This was something of a hybrid, 
being partly a holding company, 
while partly trading in the 
boiler and construction equip- 
ment businesses. 

The new structure, which 
came into effect two months ago, 
means that Babcock and Wil- 
cox's days as a trading com- 
pany are ended. Its new role 
can be described as a publicly 
quoted holding company with 
four U.K. subsidiaries — them- 
selves each owning a number of 
individual operating companies 
— and two overseas investment 

Each of the UJK. subsidiary 
companies will have its own 
board, chaired by Tom Carlile, 
the deputy chairman and 
managing director of Babcock 

Why Babcock and Wilcox has been re-organised 

Clearing the decks 
for a takeover 

and Wilcox. These new entitles 
are basically the old “ operating 
groups," with their assets and 
liabilities made over to them; 
they also now bold the shares 
of the Individual operating 

But the reorganisation has not 
been without its losses. Mr. 
G. E. Darwin, who was managing 
director of the “general 
engineering group,” and had 
been in the company 20 years, 
left as a result of iL as the 
chairman reported to last 
Friday's annual general meet- 

The four new operating com- 
panies are: 

• Babcock and Wilcox 
f Operations}, which will hold 
shares in the merged boiler- 
making operation. 

• Babcock Contractors, which 
includes all UK contracting, 
export and associated overseas 

• Babcock Industrial and 

Electrical Products, which in- 
cludes the old “electrical 
group,” as well as parts from 
the “general engineering 
group.” - 

• Babcock Construction 
Equipment, which includes the 
remainder of the old general 
engineering group, together 
with the construction equipment 

On the international side, the 
corporate structure remains 
largely unaltered by the re- 
organisation. Babcock Interna- 
tional Inc. holds the shares of 
ACCO, and the companies other 
investments in the U.S. and 

Babcock has not restructured 
its other overseas investments, 
although Babcock International 
Investments will perform the 
function of what used to be 
called the international group, as 
a management company for its 
other offshore assets. 

The head office, in a quiet 

square in London's West End. 
and with a staff of 45, will still 
provide certain services to the 
group. Ail ECGD applications 
will still go through it, as will 
legal matters, financing and in- 
surance. It will also monitor the 
group worldwide. 

It hs the head office which will 
probably feel the greatest im- 
pact of the restructuring. As 
Tom Carlile puts it: “The 
problem with the growth of the 
group has been that there has 
been much more work coming 
through head office ** and he 
adds that with an easier load 
they will be able to “develop 
the company further.” 

Indeed, one way of viewing 
Babcock's restructuring is that 
it is clearing the decks for a 
further purchase. It is no 
secret that the company has a 
continuing policy of growth 
through acquisition. 

John King offers a wry in- 

Tcrru Kirk 

Mr. John King, chairman 'of Babcock and Wilcox 

sight on take-over strategy with 
his comment that it is better to 
be second in a bid. and a 
rescuing saviour, than to be first 
and be blocked at any cost. (A 
reference to Babcock's unsuc- 
cessful bid for crane maker 
Herbert Morris, which sought a 
friendly bid from Hawker 
Siddeley, although it eventually 
went to Dary International.) 

Now that the reorganisation 
has taken effect, senior manage- 
ment at Babcock will be freed 
to spend a lot more time with 
any company they purchase — 
which would probably be run 
under the head office wing for 
about a year after acquisition 

before being injected with full 
subsidiary status. 

Although Babcock says it 
generally prefers to keep exist- 
ing managers in purchased com- 
panies. “ this company is being 
run by people who have come jn 
through acquisition,” says Tom 
Carlile — it is nor without its 
problems. “The most sensitive 
issue in such a situation." says 
King, “is that the board is no 
longer reporting to rhe public 
but to us. Even though the com- 
pany may grew and be much 
more important, it no longer has 
the same status.” 

Jason Crisp 



An issue to the 

1 am the holder of 2.500 shares 
in a company whose authorised 
share capital is 10,000 shares of 
which 5.000 have been issued. 
The bolder of the remaining 
2.500 shares has now lest Interest 
in the company and has resigned 
his directorship. The company 
needs additional capital and f 
would like to issne the balance 
of shares to myself. Am I 
legally entitled to do this? 

Unless there is something 
unusual about the articles there 
is no reason why the remaining 
unissued shares should not be 
issued. It Is a moot point as 
to how far an issue made to one 
shareholder only may be 
impeached hy other share- 
holders: but to avoid this risk 
you should offer the shares on 
identical terms to ail share- 
holders. If. for instance, they 
are offered ar par to the other 
shareholder he is unlikely to 
want to subscribe for them. 

No legal responsibility can fro 
accepted fay the Financial Times 
for the answers given In these 
columns. All inquiries will be 
answered by post as soon as 

WHY DO employees change 

Few studies of this much- 
researched area make any 
mention of the attractions of a 
cash refund from the pension 
plan — yet there is every reason 
for thinking that it can be a 
major attraction. 

We alt want an adequate pen- 
sion when we retire, but we 
also want to use the cash in 
the meantime. There has been 
considerable publicity about 
arrangements whereby em- 
ployees leave on a Friday, 
receive their pensions refund 
and are then re-engaged on the 
following Monday. 

But there is another side to 
the picture. A change in job 
may mean an increase in salary, 
better fringe benefits or even a 
greater job satisfaction. But it 
will usually mean a com- 
paratively lower pension at 
retirement. What does happen 
to someone's pension entitle- 
ment when he or she changes 
job, both in respect of past 
service with the previous 
employer and future service 
with the new one? 

Most schemes give the 

employees an automatic right 
to a refund of the contributions 
he has paid. This option is 
almost always exercised, even 
though it usually means forfeit- 
ing any right to benefits secured 
by the employer’s contributions. 
The Inland Revenue is in 
principle opposed to an 
employee receiving . both cash 
and a preserved pension (how- 
ever diluted It may be). 
Employers are naturally quite 
content for employees to take 
the cash — it helps keep pension 
costs down. 

Square one 

But when a refund Is taken, 
the employee has to start from 
square one in his new employ- 
ment in building up a greater 
pension entitlement that the 
State scheme offers. Since 
pensions are based on the 
number of years of service, this 
means a lower pension at i he 
end of the day. Only a really 
aggressive employee can bargain 
for an accelerated pensions 
build-up as a condition for join- 
ing a new employer. 

Over the pas't decade, there 

Pension scheme pitfalls 

have been three important 
pieces of legislation designed to 
ensure the maintenance of 
pension rights, by compulsorily 
preserving pensions and 
removing the option to a refund. 
Like all pensions . legislation, 
this has resulted in a confused 

First came the Finance Act, 
1970, in which a section stopped 
refunds to employees whose 
pensionable salaries were more 
than £5,000 a year. This level 
has never been revised or index- 
linked, and so many employees 
are now affected by its 

Then came the Social Security 
Act, 1973, which gave an 
employee the automatic right to 
have his pensions preserved 


Expected salary at 65 — £18,000 
Years of service to retirement— 40 
Pension— 40/ 60ths of £18,000= £12,000 


Salary on leaving £9,000 

Years of service at time of leaving — 20 

Deferred pension at 65=20/6Oths of £9,000 =£3,000 

Expected salary at 65— £21,000 
Yean of service to retirement— 20 
Pennon =20/ 60ths of £21 ,000 =£7,000 
Total pension =£3,000+£7J100=£10,000 

when he changes jobs, provid- take the form of a deferred 
ing he is aged at least 26 and pension, based on years of ser- 
has at least five years' service vice and the employee’s salary 
with the pension scheme at the level at the time of leaving. The 
time of leaving. These rights Act only relates to years of ser- 

vice since April 1975, when its 
provisions came into- force, so 
automatic preservation will 
apply from 1980. If an employee 
does not claim a refund then 
all years of service are pre- 
served in pension rights, but 
this does not happen very often. 

Finally, the Social Security 
Pensions Act, 1975. which imple- 
mented the new State pension 
scheme, ensures that an 
employee will have his equiva- 
lent State pension maintained. 
If he takes a refund, then there 
will be a deduction for his por- 
tion of the Contribution Equiva- 
lent Premium which has been 
paid to the State scheme. 

These legislative require- 
ments are somewhat conflicting. 
So the Superannuation Funds 
Office of the Inland Revenue, 
responsible for approving 
company pension schemes for 
tax purposes, has drawn up 
a compromise scheme which 

sets out when r efunds are 
debarred and deferred pensions 
are applicable. There are 
two alternatives for the em- 
ployers to choose from: either 
anyone whose pensionable 
salary Is more than £5,U00 a 
year is not entitled to a re- 
fund: or anyone with more 
than five years’ service in the 
pension scheme is not entitled 
to a refund. 


Under the first option an em- 
ployee can take a refund, 
irrespective of his length of 
service. Under the second he 
can take a refund irrespective 
of salary. The choice is the em- 
ployer's, and it has to be incor- 
porated in the rules of his 
scheme. The position after 
1980 is that the provisions of the 
1973 Act will dominate, and 
that the situation will be even 
more complex. 

Even with this legislation, an 
employee who changes jobs still 
loses out, compared with his 
colleague who remains. 

Consider an employee who 
has been with company A for 

20 years and is due to retire in 
20 years at 65. He is consider- 
ing changing to company B 
because of better employment 
prospects. Both companies have 
a pension scheme providing a 
pension at 65 of l/60ths of final 
salary for each year of service. 

As the table shows, there is a 
pensions shortfall of £2,000 if 
he changes jobs. 

What is needed to overcome 
this shortfall is for the employee 
to be able to “transfer” his 
period of service with his 
previous pension scheme across 
to the new scheme. In the 
example above, the employee 
would want to transfer 20 years’ 
service to company B. Quite a 
simple request, but the 
question of how much company 
A should pay company B has 
not yet been resolved. 

Mr. David Ennals, Secretary 
of State for Social Services, has 
now' given the Occupational 
Pensions Board two years to 
come up with an answer. A 
future article will look at some 
of the possible solutions and 

Eric Short 

/Ve are a part of the Arab world 
;o all vou need to do is walk 
hroudh the door of a European 
\rab Bank and you can bene- 
it from the trust that Arab 
jecision makers place in us. 
:\part from giving you unique 
ntroductions in the Arab world, 
ve offer a full range of banking 
services; medium term project 
inance, financing of foreign 
rade, collection and transfer of 
unds, acceptance from bank- 
no institutions of deposits for 
/arying terms, loan syndication, 
Euro-currency and Euro-bond 
ssues, investments and 
noney management 


>itiu Dhabi Fund for Arab Economic 

Banque Nationale dWgeria 

National Bank of Egypt 

National Bank of Kuwait 

Banque Libanaise pour le Commerce 

Banque Misr-Uban 

Credit Ubanais 

Socials Generals Ubano-Europ6enns 
de Banque 

National Commercial Bank, Tripoli 
Banque Marocaine du Commerce 
E tfeneur 

Sultanate of Oman 

The National Commercial Bank, Jeddah 
Bank of Sudan 
Banque Centrale de Syrie 
/xmb international Bank. Cairo 
FRAB Holding. Luxembourg 
Creditanstalt-Bankverein. Vienna 
Boeiete Generale de Banque SA, 
Brussels . . , 

Sociele Generale SA, Paris 
Deutsche Bank AG. 

Midland & international Banks limited 
Midland Bank Limited 
Barca Commerciale Italia na ■ 

Fuji Bank Limited 
Industrial Bank of Japan 
Amsterdam -Rotterdam Bank N.V. 

Credit Suisse 



Avenue des Arts 19H-6te2 
B-1040 Bruxelles 

Tel.: 2194230 - Telex: 26413/23384/25762 


Mimchener Strasse 1, P.O. Box 16230 

[>6000 Frankfurt/M 

Tel.: 232707 - Telex: 416874/413030 


29 Gresham Slreet. London EC2V 7EX 
Tel.: 01-606 6099 - Telex: 8812047 


Kanoo Centre. Al Khalifa Road 
P.O. Box 5888. Manama. Bahrain 
Tel.: 50600 - Telex: 8940/S996 

Representative Offices: 


26th July Slreet N° 15, Cairo, Egypt 
Tel.: 48698/52431/52579 - Telex: 92619 

Room 427, Fuji Building 

3-2-3 Marjnoucbi, Chivcda-ku, Tokyo 

7e!.: (02) 2*4-6053 - Te-e.c 2226287 

Capital of the Group: F. Lux. 2 billion (approximately US$ 60 million) 









At sight and up to one month 



Exceeding one month — 








Discounted bills 

27.448 - 


Debtors for acceptance 

Loans and Debtors 


' 2.644 

Up to one year 



Over one year 



■ T 






Furniture and Equipment 

■ 61 


Other assets 













Banks deposits 


At sight and up to one month 





Over one month 







Creditors and other deposits 







Other liabilities 





(subscribed capital) 

(Lux. F 2 billion) 


Paid up capital 








Profit brought forward 



Profit for the year ' 



Retained profit 





Per contra accounts 



! Liabilities of banks and customers forthe guarantees 

issued and confirmed .documentary credits 



.. Per contra accounts 

Commitments on guarantees issued 



Commitments on documentary credits 







Black economy 

.. Financial Times Wednesday May 31 .ItflS.I 

on the Chelsea varieties 


AN accountant! know was some* 
'what surprised recently when a 
; email client, whose books he had 
.kept for years, turned up at his 
•office smoking a big cigar. His 
ear repair business bad for years 
r-reported a turnover of about 
£9.000— hardly enough to support 
.lavish jiving. “ I've just sold up,” 
he explained, “and I need youf 

advice on investing the pro- 
ceeds.” The accountant was just 

• about to launch into a spiel about 
unit trusts when he thought to 
-Inquire how much was involved- 

* It's £190,000,” said his client. 

Even an accountant accus- 
tomed to the idea that a small 
•business these days needs three 
rather than two sets of books 
—one for tax, one to run 
the business, and one to 
show to intending buyers — was a 

.little taken aback. This was 
evidently concealment, or inven- 
tion. on a really imaginative 
.scale, where he had suspected 
nothing out of the ordinary. It 
was one nr the relatively rare 
occasions when a member of the 
straight, tax-paying world gels 
something more than a vague 
impression of the black economy. 

are concerned' with such things 
as decorating, building, .motor 
repairs and the like which, used 
to be recorded more fully.. We 
can only guess at the. scope of 
this, but there ate .some 
statistical clues to help. The 
growth of the note circulation is 
one of them; the others include 
such things as the rise in .the 
savings ratio, the apparent 
participation rate of men in the 
economy (a participant is a man 
at work or registered as un- 
employed), and the apparent 
growth of do-it-yourself." 

WHAT WAS the good news, against a plain old wall, 1 was 
after a weekend's thought, from thinking as I looked at this 
Chelsea Blower Show ? Not only year's gardens. Inside the Main 
tint the National Farmers’ Union Tent, as always, the clematises 
can grow . cauliflowers of «uch of Pennells,. Treasures and the 
firmness and width that we are rest were asking to be freely 
left -to wander why their mem- chosen. Beautifully presented on 
bers "grill get} such ^ floppy hor- their bamboo canes, they took 
rors in. provincial markets. There the prize, once again,- as the 
were also the new New Zealand garden flower best shown for 
flaxes, or phopniqms. True, iny its customers' pleasures and 
old two Have lost died! in last interest Which, then, are worth 
winter’s., frosts, $o I. mgy be a try? 

biased. Chelsea Show finds me well in 

No doubt they are the done the mood for a cl emails spree* 
thing in Dunedin. ' out on the perhaps because it coincides 
home -from-h wn e front patio. But with the best of our own men tana 
the new brightly-leaved varieties month. A wide sweep of the 

ss sta stsas ssTaSr’sSi/S SrrSrrSS 
ESPHstSK ms « ? as s ss x =? z S sr*. ft rwaa 

Fersonaiiy, i aiso gro uk. ... nd hold one. stretch of Wire niauve-nink stripes on a nw 

did not- seem to" me to he toler- angle pink or white m on tana has 
able garden-plants. Their colour- dever been moved up to Chelsea 
ing was ■ too exotic, too red. Show; it remains one of the few 
brown, or multi-mixed, to look reassuring sights, when gardeners 
like anything other than a green- return to their" own home 
house foliage-plant which had gardens. I prefer the pink ones, 
been drooped by. mistake among which must be bought as. named 

£Hs8 StlSb Another one for Kelleway 

regulation-evading and carefree bigger the black economy, the 

■ J?c S i , o™ n c"o"ridera^"™!; n rof 0N 0N ' E 0r THE hottMt afler - JS* 1 "V '■"I- I** 1 *" “ !>“> «1» l« 

speculation in the City recently. JJgJ,”* “ Sorded » lew noons ever enjoyed by Sandown through lack of stain bu and Shangarnuzou i 
inVm’nmrs to evnlain such things artl ll> s rc a& iess " racegoers Green Girl yesterday trainer, Michael Stoute, has now race conside 

as the growth of the note circu- _a_j earned herself a tilt at the C0 J ne .round to the idea or ground was a 

lation (which so far from falling C^ 0 HlpIlC 3 .tGll Epsora Oaks. rvMoiin 3 nii^ 1 * in re ilf hl 

The point to grasp w that 

except for these marginal clues, 
the whole affair nets out of the 
statistics. It cannot, as some 
City people seem to suppose, 
explain why anecdotal reports of 
business conditions are some- 
times much more bullish than 
the official figures. 

It works something like this. 
If you spend money with Mr. 
Black to repaint your house, you 
have less money to spend on 
other things, and he has more. 
Further, if Mr. Black saves part 
oF his takings for his old age 
(and if he is not paying national 
Insurance, he had better save 
quite a loti, total spending in 

plainer . border-plants outdoors, pink varieties. Far the - com- 
Phomrium Sundowner and Scar- m'oneSt is Elizabeth. . go common 
let this-and-that are not for me. that I begin -to doubt If most of 
I would still prefer the H ann as the stock on offer is true to 
on a South Coast roundabout name. The colour varies greatly, 
whose purple-brown leaves are not least on plants set in the 
bigger and overshadowed, too. by shade: away from the min. thev 
flowers. The New Zealand phor- are more of a white than a pink, 
rafums are one more novelty for This is a nuisance and is not 
those concrete gardens where eastlv avoided, 
designers' forms are tegtqred Ptctons Variety would he a 
and flowers are lost in “plant safer pink, but it Is less vigorous 
material.” Overhead, a structure; and has no scent. Try to choose 
notentllla Bed Ace beside' the an Elizabeth in flower,, if you 
barbecue grill: give -me a well- can, and hope for the best if 
manured group * of clematis you then put it in shade. Quite 

Personal lv t also grow the new Elizabeth Foster, a wear must rc ach the sun; sue you win ®0* 

closely-related Cbrysocoma be- colour, bleak , and a bold one. ^ avC a good sprelch of .$}£. of mauve-pi Ink *P]Utr 

cause it* Is qmckerTrhe form You could do worse than begin nelt j ng up which to clwb, s rev-white 

called Sericea. if property listed, with this on your next Clematis g en j a te must cope with the , 0 a darker efo< Feu?wUt bred 

■ff&TSSS'SmmSSS^ order. But there are others. J an " ger 0 f wilt. But her pa e it and showed * fljmfcitf, 

e 7 blue double flowers are worm tnc onc i, at j point, the sickly colour 

. — trouble. If yon can stan her off l0 w hich die flowers fade 4a Jaae, 

■ properly, you may And she hears a fault which you have to forgive, 

a Tnn it V a few single flowers on the young ibough a show would not ztvegj 

GARDENS TODAY- Km. Tru C .sm«“ it fihlrtheta ftataftM**, 

the year after she produced this ^spite this small blot 

■ BY ROBIN LANE FOX SStl'h.'iSkim You cannot^do Da»n b«,n hcr llf. u Aapon, 

jjjjg 1 mi wafer her hwvily in when Treasure «t.T q*»g.jj W 

llUsy, anciits growth very rapid, particularly the hlues with big liquid manueto M^se^'and” awkwart YtlJ» 

But a frost can sometimes shake flowers, which I would still put once fortnight T * r iet>* hut Queen. The colour fadetanfl 
it <1 lost one in mUd 1970) and flrsL Sons the varies between white and bitufa. 

It has nD scent. Its use. how- First ofall must still be Perle stilTa lovrij ^ spej §. up white j mt \ like it iteoauM fa 
ever, is on other people’s eye- d'Azur. This Is the dematu for newer J* 1 rt ™L-pJ M Dawn and flowers are rounded and 

sores and ail those modern nervous gardeners who think that for . Joan iStlVchiU of the borne. Not too large, tbfy «t 

garages, where it will outpace clematis soon dwindles - awn>. Edith/ Edith iimdetev, a well set off by purple centm. 
most montanas in mild weather. Perle d’Azur is nearly as sky-blue Bood o|d Mr*- ■ the hi vender- One likes to think that fan. 
If you buy .a montana and find as its name, and it persists. It very sound buy in uie mvenuer w m r 

that it moves very slowly for the flowers fully In July and August, blue grimp w he R . d in c i, an ge. It must, of cour*e, he 

first two years, do not be sur- allowing .you to matchit with the ? q- 4 ^dith 8 t white ■ basSllv. said that Nelly Moser la-rtfll 
prised. Quite often, a form will big climbing, roses. Probably, it IjM. *^*5 “ 1 %ramens and her unbeaten at the tup of tfcfe hif 
mark time in this way. only to would grow up their bare lower with fine dar ■ • Qn Beside flowered list. But Dawn: -fit a 

race away in the third or fourth parts if you gave it its head- As aueen of the big good one. loo. without fa 

season. Do not prune it. let yet. I am too used to the bother Blami BoiMelot. queen ofwe o»g * ardneJIB of its othrr y,^ 

alone discard it, while it dawdles, of a sick clematis to wish to risk n,f free-m-owing and parent. The breeders are atffi 

Montanas, of course, are stale one in competition with a strong so far find her f ©r g h-vine but the tough and fra*, 
news, tbougb their colours ,md Gloirc de Dijon's rosc-rooB. If unite ^ ^'H^doubL^ nT»“ rin“ veilovo ctemS. b£ 
habits still puztie many who buy you can only afford one clematis, Warren, beyond jway d flowered and weather-resisfaL a 

them unawares. What of the new you should still buy this one. splendid. The Rote* are: ibund 

Chelsea varieties? One of - the The Show, however, turns me ant: with that he ihas been tough as rescr> o r onwaa 
new leaders seemed good and to another, the lovely double enough to survive a winter under bnow oi roe iuovs. . 

^ the recorded economy actually 
The growth of the tax-evading. drops ratber t h a n rises. The 
regulation-evading and rarerree |)i a ck economy, the 

speculation in the City recently, 
in a Heron ts to evnlain such things 
as the growth of the note circu- 
lation (which so far from falling 
in relation to national income as 

ON ONE OF THE hottest after- that Glinting had been beaLen to put the issue beyond doubt. I THEATRES " 

noons ever enjoyed by Sandown through lack of stamina and Shangamuzo. running a fine J5SSJ5 JFffthTbK 5SK« royal court. 730174 s. 

racegoers Green Girl yesterday trauler - M'chael Stoute, has now race considering that the . bah ft l HALr " 0O ^ , !*5Mt ™ “A 5 ; 4 ”! ^ • jjrt 

eameH hercetf » tilt at the co me round to the Tdea of ground was a great deal faster 

earned aereeu a uit at me Te t urn j n „ *v._- 1 — —nil 


good-looking than he relishes, kept on well I coliseum, ercuu e*«* o’-zao 52ss. 

Mjv-> 7 June « B ».m. 

relation fe St oial income a! E^om Oaks. . ££uT filly to ~E£S£ tTdVrivethe‘ outsider of TFBfiJW’tti Wt* 

the of SrfSasti? The emploj-ment question is Always travelling smoothly e vente. or possibly races War. of the runner-up spot 

mone>“ baa crown ha mo « complicated. Quite a lot and well within herself in the seven furlong. , w , * T^ TT S^.n: B ft.Vi r s.t. wg-,. 

SSwm itseif) S UnenSo>raent is or^ia^k activlty w moonligbling; chequere FiUy Stakes, the .Half an hour earUer ; Ffaott Mlfimnv ^ I JL ™ 

ilwiys »riilabl« from 10 on div 

of o*rf. 

fay Sitoo Wilson. World l-rrml . 
Brilliant comic ■ncnipQ.* TIMM. 


Openiim June 13. TOM CONTI 

grown itself). Unemployment is ? u r . t,lacK activity is moonlighting; Chequers FiUy Stakes, the Half an hour earlier . Pfegott 

another puzzle this may help to explain poor powerfully-made Paul Kelleway did not have much better luck 

The difficulty is to know how P™* 1 .®) , b r ec 2“®,' a *2“ filly only had to be band-ridden on Royal Blend, a heavily-backed 

lilt: La LIUvU 1 Kj to WU AUUW i a l. _ aI . HhoiI Cnwin IP omu in lie uouu'nyusu “ 7 - ; — , 

far the operations of the black ** inside the final furlong to pull favourite for the day’s feature 

pmnfimv will haw anv pffppt nne done by the registered unem- . . - __ a _a._ event* the Henry II Stakes. This 

syjpftj 1 ‘Lw 2?thV?mS5 ployed- without an official trace, away from her four opponents. higWy „tadxolt owned by Mr. 

way or the other, on the ficures * u 

for the recorded economy, and ir However, there has been a 
so, whether the effect is distort- puzzling tendency for the par- 
ing or not. Tn take the simplest ticipation rate in the economy, 
and most innocent example, con- for men and not women, to drift 
sider the dally help. One of the down when you would expect it 
old jibes about GNP statistics is to drift up— at a time of falling 
that if we all started taking in real incomes; and .that seems to 
each other’s washing or cleaning suggest that quite a lot of people- 



highly rated colt owned 'by Mr. 
Charles St. George, never, threat- 
ened Smuggler. Tug of War, and 
Shangamuzo. as that trio forged 
into the final furlong with the 
race between them. The West 
Tlsley trained Smuggler, a tough 
and resolute stayer owned by 
Lord Porchester. produced the 
better turn of foot and raced 

2.80— Shakiri 
2 .3©— Primer 

3.00 — RatamataJ 
3.30— Grulnirrd* 

4.00— Seriema**'* 
430— King of Accorda 

noxt Innvre Hot. New Maanlllin Balfrt. "with Dcre* GrlffitlK H JP 5,, !7' S| , S'jg » 

Sana or the Earth. 98 bakonv seats Qlre««i Dv BURT SHEVCLOVE E»«ft. at B.DO . Frl. A 

always srallable from 10 a.m. on aar .. |( puiced lo bursting ocHn: win SHAFTESBURY. CC. 1X1 4*M. 

p« v*rf. me personality aw» sheer eneray of Brace Shaftesbury A«e WC2 vHtah Holban-Mdi 

■wvrur aZiingH 240 1 066. Forsyth.” -Sun. Express. " The aumence Evps. at B.OO. MaO.Tnun-. Sat- 3.00. 

’^G»rdei5ian« c retht cards B36 68031 chaervd ‘ Sunflar Telegraph. jSlM REARDON wd JOAN OICMUI U. 

7 amor 6 Ft' * KINGT ROAD THEATRE. 112 748 fj. - A SMASH HIt!tH 15 MUSICAL HAS 
SiL 7M Mon. co Tfaurs. 9.0. Fn-jSat- TJO. 9,30. EVERYTHING." S. Mirror. 

’J£ NO^^% K 5.h H KN? 0 V W EA R I «lPITC^HD.BOOKIHOaMgg^^ 

TO SEE IT. Gdfla 

Eves, at B.OO. Frl. A Sat. 8-45 * Ml 

COVENT GARDEN. *40 1 066- 

iGardencharse credit cards B36 6803) 

Madam* Butterfly. SS Ampul’ scats 

avaH. for all serfs, from 10 a.m. on day fiReAT ROC K N’ ROLL MUSICAL I .SHAW THEATRE. 01-388 1314. 

COVEtfT GARDEN SUNDAY ^ONCMTS LONDON PALLADIUM. CC. OT-437 7373 ' ^ 7 ' S °‘ M * t8 ' 0<? ’ 

2.43— A Star is Born 
3.15— Trading 

3.45— Abdo*“ 

4.46 — Ban yam 

This Sunday at apt) 
All seats sold. 

Moil- Toes.. Thiirs. and Frl. at 8. Weds, 
and sari, at 6.10 and 8.50. 


Aug 7 with the London Philhar monic 
Orchestra. Tom or- Sat. t Mm next 

m a spectacular 

Ergs. 7.30. Mats. Tare. A Uttar. MO. 

Arnold Wester's Clastic. 

** Soil st In the heart.” O. tel. . 
low prices. Easy. Patting. Last w 

.SUNDAY (June 4) at 5 0 & 8.0. 

Bid to win America’s Cup 

A«e.. 60. 837 1672. This 1 Week Only. 

Tonight 6 Tom or. at 7.30 * Sat at 2.S0: 

each other's houses, the statisics who find no offence to their con- u u , aB „ n tmnrasEtva «tum» _oniy. box .. opw. Qjy«deboi.r«. 

would show a large rise in GDP. science in avoiding tax and other “ ..Sf/STSl clear m the ,a6t hundr * d yards Lewes^E. — 

■ while nothing would actually tiresome duties Imposed by the 11 : ki o™ 

-change. State are still too -proud and w b en *b* astute Newmarket ballet intern aci on alm Caracas 

This riiows altogether too much independent to cheat the State trainer announced after the race - SSs* KAS* m! m*”: 

awe for the statisticians The fact the other way. and draw unem- that bis Petingo filly would join DjJ 4- n w j n AmanVfl’c fim *-3 0 th * aM&&r3L!mSi 

•is that if we all did this, the plovment benefit too. itirblemate. Hutton Girl, for a -O 10 m WU1 /VUieriCd 5 V-lip SS iSSSSbJT iwi.°Rffi mi*jT^ 

statisticians would probably That is quite an encouraging tilt at the fillies’ premier classic , „ ■ • ^ „ ... „ Ju,w 5 " ' J r 2S? 5Ll?'i(*i 4 M T C * 

• never hear about it. There has. thought: and it may finally help on June 10. DETAILS of how Britain hopes The syndicaie includes Mr. ■ — - 

as we know. hc**n a large rise in a little to explain just one puzzle Kellawav has alreadv bonked to wia one " of 4he wori 4's most Anthony Boyden, the millionaire THEATRES 

the recorded employment of in the official figures— the fact chawn' Salmon rnrtm cm Prestigious yadhting trophies will yachtsman who financed Britain's cc . oi-ssa 76 ii. 

. married women, which is a that registered unemployment is a _ v _ t __ in-t-v is eneappd he announced to-day by Sit John last challenge La 1984. and Mr. ^evS.” m«*s.- Thuro. s.o. s». *.o. 
genuine addition to the labour lower than anyone has dared to ? “ Girl it seems auite Methven, ttirector-generel of the Robin Knox-Johnson, the round- the bectmusical 

force. This has probably in- forecast. These independent possiblethat he wlU teriilfi to CBI " tiie--worid sailor. of vwe. me 

. voiced a large rise in the casual souls have simply emigrated $ ecun the servlces of L^ter Sif John has accepted the The actual challenge to the “ LONDO, i u s nd S^ ST pe5i? HT OUT- " " 

employment Tor cash, of dailies, from tn* i statistics. This might pig go tt, who yesterday rode the presidency of a syndicate back- New York Yacht Club has been alreaoyseen ctaaom 

who are only substirutlng. ‘Hie suggest, by the way, that up to 0 dds-on favourite. Glinting, who ing the 1980 challenge for the Issued by the Royal Soivthern creoFt cARtr«ijKiN«^aS? tS^i. 

S&MefiWSst tamjiuL-Mr a*. 

STRAND. 01-838 2860. Evenings B-DO. 
Mat. Thor*. 3.00. Mtnnfan 5-30 A 



GOOD SEATS E4.00.t1.90. 

LYRIC THEATRE. CC. 01-437 3886. 

Ev. 8.0. Mai. Thu^- 3-0. 54^ 5.0 A 8.30 STRATFORD-UPON-AVON. Koval Shakfa- 
J rfJi^ P » P Saf B Sv T » pea nr Theatro. <07*8 2271.1 YUM. 

COLIN BLA _ ELY ImnwOlaMu ■vallatetei tar >tr In Wl 

Shadows. WeMls. K ria ? ln i.j n " t 7 3 % MAY FAIR. CC. 628 3038. 

Toraor * t 1-10 J r.fu'.iran • Mm. to Frl. 8 . 00 . Sat. 8.30 and 8 AS. 

3J* Mo on an 6 tEfl.CMIdroti g GORDON CHATER ■ , Brilllant. , • E.N. In 

t^WalW- AnH. Kodjn Mls«n VN. THE ELOCUTION OF 


dances Tram dan. Stave J. Spear* 

"A eomoauionate funny fiercely ekwuent 
PUt/' Gdn. "Hilarious." E.Std. "WVtkcdlv 

...wTm •• , MnwC '■ " Ikk. 


* pea re Theatre. <07*8 2271.1 TIM, 
Immediately available tar RSC In THK 

nw. jsuissb to 

10788 89191). 

ST. MARTIN'S. CC. 838 144X. Mm. «. 0 <L 
MatJbve Turt. 2AS. Satarriava SAB. 

amusing." E. News. "Spellbinding." Ob*. 

e Tun. 2A5. Satarriava SAB. 

THive-u a tarsc nre in me ra uai suu-s nave suupiy nraigrarea iecure the servlces 0 f L^ter Sif John pas accepted the The actual challenge to the 
employment, for cash, of daitifs. from the statistics. This might pi g g 0 tt, who yesterday rode the presidency of a syndicate back- New York Yacht Club has been already slen by 

who are only substituting. The suegest, by the way, that up to 0 dd?-on favourite. Glinting, who ing the 1980 challenge for the Issued by the Royal Southern creoFt 1 carcT^xikip 
figure* are thne more meanine- half a million neoDle are r.u.* ... _ r...i... ..a . k.u l. i. ve u ™ v, i „ .... c n „H..T»i n T. ■ ■ 

MERMAID. Z48 76S6. Restaurant 248 
2839. Wed- to Sat. 8J30. Mats. Wed. 
Frl. and Sat. at SJJ 

Every Mon. and Tucs. at 8.15 p.ra. 

Alee McC Owen's 
/. fSons. at 7 JO p.m. all seats sold} 

’ Prev. June 13. Opens June 14. 

t Indicates programme in 
black and wblte 

RJI5 Dave Allen at Large. Scotland — 5-55-€J20 pjn. Report- 

9.00 News. Ing Scotland. 1.13 a. in. News and 

DDf | 8^5 “ Junior Bonner,” starring Weather for Scotland. 9-3Q This is Your Life. 

1 Steve McQueen. Norfh#ni i«.ianrf ibj u B n 900 Beat Sellers, part 3. 

MO-7.53 ajn. Open University. 11.03 Weather. NorthwS ireSndNm^SsSS 19M News. 

£*» P' m - Bagpuss. 1.13 News. 3^3 UJK Toiilsht including the SconcATourfdsSL 113 'a.^News *0-M Best SeUers, part 4. 
Regional News for England Hamilton By-election. ^ fir The Andi’ Williams 

7.00 Coronation Street. *-2» F-m. Report West Headlines. US 

7.30 Action Argentina. • Walea Headlines. 2JM Hoinw- 

This In Your IlfP wny ' ** R*” 1 *** We5t »»»■ 

am i?., 0Ur . , i “I Dodo tbo Space JOd. 5JB Crossroads. 

»00 Beat Sellers, part 3. mb Report Wm us Report wales. 

10.00 News. MB Ur. and Mrs. JUB The Gallon and. 

10 JO Best SeUers, part 4. Simpson Playhouse. 

11.45 The Andy Williams Show. CYMRU/walSS-a* htv General 

1.00 Close. Xanthi Gardener 4JB4AS un Tro. umjs y Drdd. us 

reads a poem by Angelene 7j» Elmaddlod Genediaetliol Yr Urdu 
Paterson. HOT. H * v i ? is Am. Eisteddfod Geoad- 

All IBA Regions as London la ^J X r Kn M „ 

xceot at the foil© wins? tiniGfi!— htv West— A s HTV General Service 
p “ ,ouow,n « unies. ptte pi: UB-UO pjo. Repon We« Head- 

AiVni I A lines. iJMJB Report West. 

i except Lonrlnn I. 3A3 Play 
School. 4.20 Great Granc Ape and 
Bailey’s Comets. A30 "The Bridge 
of Adam Rufah.” 3.35 Ron barb. 
5.40 News. 

5.55 Nationwide (Loudon and 
South-K:<«t only). 

050 Nationwide. 
fi.43 The Livi r Birds. 

7.13 World Gup Grandstand 

n- 7 T Weather for Northern -150 am. Regional News i r _i~ nri 

for England (except ' ' 

London). England — a^a-OJO p.m. Look 

All Regions as BBC-1 except at Eait (Norwich); Look N’ortli 
the following times; — (Leeds, Manchester, Newcastle); 

Wales — L5O-5.X0 p.m. tiivoby Midlands Today (Birmingham); except at the following times: 

Doo. 5.10-3.40 Bilidowcar. 3J5-&20 £°‘ nts w «* (Bristol): South lVrn . 

Wales Tndaj - . *43 The Urdd Tnda >' (Southampton): bpotiight AlNOLlA 

m' -m ^ 

Miv.;.'GM8' !l 'iur.'u y-rnTTFi 

■ 1 r* 

■ -7 1 ™ ™ 

(now .early Marl! .BRAND fay Ibsen In a 
version BY- Geoffrey RH 1 . 

■ LYTTELTON (nroKonlliai stageK TorCt 7 
' trod. pr. opening]. - Tonror: 3 (rod. nr. 

■ W iatj A -7.45’ PLUNDER by Ben Tratar*. 
COTTESLOE (snail .auditorium): Ton't 8 
KLDS by WKson John Hal re. 

LOST WORLDS' by Wflson John Hal re. 
Tomor. 8 JnnIAnUn iWorkshool. 

Many oxceHent chcop sera all 3 thoaves 
day of perf. Car parte. . Restaurant 928. 

day of perf. Car parte.. Restaurant ! 
2033. Credit card bkgt_928 30SZ. 

_ _ _ ANNIE 

Ergs. 7.3D. Macs. Wed. .and Sit. 3-48. 

Hisieddfod. 7.05-7.15 Carloon Souih-Wcirt (HjTnouth). 
Grandstand Time. 1.13 a.m. News and Weather — 

for Wales. BBC 2 


“T PI M m . M M M M 

South- West (Hj-mouth). sai .unmaicd Classic: Robuison SCOTTISH 

Crusoe." UJ9 The Little House on the XB .00 Battle for Casslao. IBJ 8 Feature 

BBC 2 “f® ThsCbtr^Viaens She*. FUm “ -a*LZ W°US mJkSSS 

»t>v- X L2S MR. AiWUa and Road Report. 5-15 Teatime Talcs. 

n , ^ an ® Mrs. E39 About Anglia. 5-20 Crossroads. LM Scotland Today. 

fi.40 7 ^m a.m. Open Lnher*itj. liAS Tte George RamOttu fv snow, ajg Ri>Dort. has imb r wH 1US Police 
10J33 Gharbar. __ LOO 4 jh. The Bis QwaiTlon.. Surgeon. 

1, 00 SSs p-Sj. 001 lAs BBC1 ATV SOUTHERN 

^ Xews°on "‘•^HeadUnei, SSSS’ l^S To 

i'™ ® n . Hwdhnej,. Comedy Break: Rlndle: “ l)w of Their 4-irdera to the Sun. UJO *• BtntUe fOne 

- 1.05 Mr. Smith s Flower harden. Dan." surrlnu Al«e Bata, iui circus, of Them Dub'." starring Alfle Bass. 

7JW Newsday. -• 'j® o-m. -^ tv Xeostfwilu 3.26 Beryl's 128 P.M. Southern Feus. LH House- 

s. 0 fi Dance Month: The Royal I-*- 3 * T ?£_. Su i l iT ans - , 5 . J £ s l r - ^ ^ Betty Bono. 520 crossroads. 

Danish Ballet n resents 08 ATV Today - CltUens' VOO Day by Day. 1 X 45 soutbero Neirs 

« r Jr liMPw « RWUS* Extra. U^S Tbe Builin's Grgnd Masters 

^ JyC Consort.! I orj 3nd RnDDlTP Dan> duunploiislilp (Dnalt. 

“The Miraculous Man- HUKUtK -rvivir" ■fr'irc' 

darin.” *-">■ World Leaders: Rooeevelt. lYNt It to 

10.43 William Wilson: A Tale by »!& 1 J^*. nl V"‘‘ n,ed , ..«? Vi’S* Go ?? ^? rt ,oI !?l ,:d „ 1,5 

Fd"ar Allan Poe JT 0 ™: *** u -5 d i p,Ba Agwfinn* of Forth East Tioyn UeadUnas. 5.3B Star 

,, , rr„ r rLa PJB. Border News. Riders. 1.55 Beachcombers. UL 20 Morn- 

* J Z ' «■ ,, . “ Housepairr 525 Mr. and Mrs. 620 Uig Moyle: " Beach Party." marring Bop 

It A3 -11.40 Closedown: Sir Hush Lookaround Wednesday. tLOO a.m. Bor- Cummings. 125 pjn. North East News 

Carson Ulks about “The der Summary. arid Lootnuround. 2Jm Women Only. 525 

Travelling Companions " by CHANNEL Landscape’”' *"** Northern Latm a -* 5 

Augustus Eng. LU p.m. Channel Lanctitlme and TTT CTCD 

BRC-2 Wales only— 7.0»-i JO p.m. Whai'fl on When?. US oianmd \eu& ULolLK 

Hrdrliw 1125-11^(1 Mr Smith's Ttlr Boatiu. lflJt Channel Lat» UJS Sean the Leprechaun. XL 2 I 
Fim«r raniM Xpwa 11.45 Darts In Concert. UJim Undersea Adventures of Captain Nemo, 

riouer uamen. Nm and Weather in French tallowed by 11 15 Animated Special- LB p.m. Lunch- 

_ Epilogue. tfimi, <28 Ulster News Headlines. 525 


9M ajn. Kimba. *J3 The E<Sd,1,,,e " 

Magical Mountain— Java. 10.45 A jfj* Boobl-wiUv. The Beadicombere. WESTWARD 

Big Country. 1L15 .Animated -MS a-m. The Slips That Flew. ULS 

Classics. 1 12.00 Here Comes Ou*>. luo M aw .wnd. 

Mumfie. 12.10 pum. Pipkins. 1^30 ^ 

Sounds of Britain. 1.00 News plus Headlines. . ^ lg££2k 

PICCADILLY. 437 46D6. Cra0t«C4rd bkgs. 

828 ■. - 3971 - 3 .. 0.30 -4.rn.-SJ0 P.m; 

■ tiw. 1 . Sit 4.4S -4 8.13. Wed. nmf. 3. 

Cros. 0 . su 4 AS -4 8.1B- Wed. IBM. J 
‘ R ova T sb* pre tom p* n» in ■■ 
jwjf w' NiawK 



. .“ R^D^8*rtng. , tHunu>fi.fi_5: . Ewta. 

. ' RBST «MEDVr OF YHElVEAjr^ . 
. Iv. Std. Award md SMS2- 'Award: 
.-Pteasv note: from 3 JUm perf. times 

Win be MOd'FrS. 7.SO., -Sa< -4 JO mri 
-■ 8 p.m. Wed. MM.’ -ax. x. . 



MtT 3 -* 

gnunus ui cruam. i.w pius - ... . Westward Diary. UJI VtsiwHd "tale 

FT Index. 1.30 Help! 1JW Crown GRANADA News. U-C Dana hi Conhfcrt. 1220 mi. 

CourL 2.00 After Noon. 225 ws a.m. sesame street, ujg ••nie T,ja tv 
General Hospital. 225 Once in a B®rro*vra.*- uas sons Boob. UO pm, vflD tTCHTO F . 

Lifetime. 4J0 Michael Beutine's I?? P Your . Ms what's New. , u ‘ ^ 

daii., Ttsnvt « «- tha d„« n .j ik. 5JS Crossreads. LBB Qrrnds ffennm. «*■ Turaii, W-2B Taft Pare 


1 Drink for each meal (6) 

M II L 1 1 I Lifetime. 4J0 Michael Bentfa’s 52S what's New. .. 

1 Pnlli- Tlvno 1 Tho Rnv and lha ^ CTfitmOarfl. Uft Qrvuda RfiDOnS. “ O-IB- TlTTM, WMB Tfl& Pare 

- _ . . n ™ e - ,“v ne ine UB Mr. and M 1% UA* Paul naSeh ttpfT of SL TrUnltn'S/ 1 starring Ocll 

6 Curse river Soma over Elephant *.U Emmerdale Farm, at the Viweiumn. P artter - cole, crenfeu am 

decrepit vehicle ($) 5.43 Neu-S. xmr ■ Sidney James. . XL58 Cartoon.. .Time. 

■ n is t- caa itImmu a hi” 126 P.m. Calendar News. 526 Mr. and 

Plow and Plavars. London Critics Award 

4 Mo rlii dl > eager always to fish " Peculiar mime about French Thames at 8. 

HIV 1 Shiner James. . XL5B Cartoon. ..Tlmo. 

_ _ _ nir L2) p.m. Calendar News. 525 Mr. and 

s ' sa,T 'e StreiL 1820 “ Cal Hor- Mrs. fc-M calendar lEmley Moor and 
“* Holiday, '■ starring Qrlt Presley. Belmont editions). IMS Hie Entertainers. 

-» u , ........ — — ... _ , a r,Aecniulc limp Mrs. uwrair •fi.auer nmr antj 

< lilt side (Si article like 3 (8) u# krossroaus. BU Bullday," Itarrtns Oris Pmdey. Belmont editions). IL45 The Bntenalners. 

9 Fixed to the ground 43 plant 8 Clothes supporter in wood on — ‘ ’ ' 

*uay be (6> skua nKnnt hl^l RADIO 1 347in ”y ,c tn r 0r V an ,s *- Bartok and XK News. 3J0 Afternoon Theatre fffi. 

10 Agrees with male church 11 Fight and argue about bird S««opl»Mlc Unit 1 "" Sctmbert concert «.S»- UJO The Part- 3J» Owral evenawit 4JS Stan Time. 

iiflicial (S) 5 . do b-ib. As Radio 1 7JB Dare Lee ^ »>«W Co* M9 PM RcporiB. 520 Serendipity. 523 

I- XMlc launcher «nM he a H B.fnin ' -to « £% '2 Bg-J^-rrSSLrtSi. V& iJSI 

calamity tu smoker (S) black inarK {() ^JBD Tony Sma. cn Hd j^b <s '- 3^5 Two Harpsichords TjflS We Anthers. 7Jtt File on l.lni "orwwwmy wti 

13' Hoop in iron border (61 Lodged note with editor (b) m^odltts 5J0 Nca8bcsL 7 JO Sdotis Desk |E[ ir * * Rcaflina- raafles^ Gray as^ Voltaire. _ MO 'Science 

DIO 1 Zi7m tar 0r V an 'S'- >W8 Bartok and X0O Newt 3JB Afternoon Theatre fffj. 

(5) Steteophontc broadcast 5^ Bbt £ t rtnwert «S». UJO The Part- 3JB Choral firewis. 4J5 Sion Time. 

RAYMOND REVUEBAR. CC. 01-734 1535 
At 7 m. ? ny. 1.1 nm Copen Sunday) 
PAUL R AYMON D presonts 


Fully Alr-Cundltlaned. Yaa mav drink 
and vmotot m the auditorium. 

REGENT THEATRE) 837 9863. 

jtwrL 8.30. Frl. and JK. 7.0 and 9.0. 
Elmnt, soodjiunraurrd emwolno.- Gdn 
A new musical. 

"Cauitte and Comic.- Times. 

. i— * eorw *" 0. Tel. 

Linda Thorsen- . . arevelaBon." Times. 

witty . . . 

mid Hobson 

tt fctanl Momui^firantS^mtanBF S?00? 5 Friday 0 r£5 >W -aWiy 1 ^ t735 101 

SO Repartee making sire opt rur «cai- . ^h rSq’" 1 " *- m " Commdnication. -- rji” RBr"s»j' “ 

change (|) Llub in vrtuch money goes to — Qrebestra In Bndspest, part ,i: Mendels- RRCI -Rfldin Tjinrinn 

21 Legend from South American your head (6) R ADIO 2 l-iOOm and vhf ^tn. Eimr rsi. ras Tbe ahs w or i*yWe. ■ 8010 “9? aon , n< n 

1 state (41 23 Ash or elm partly on land (6) sjm ».m. n c « summan-. sjb Bay sm a.m *, R a d.n°? tS F 

23 Outcome for reserves last 24 Out to the world when hunts- Etteijth. MacoiHiiyr Qnaiw^s '■* uidin Uvc. ii» pjh.^iu in! 

. month (fi) ^ man comes up 051 : S . S * D .-. £ WlHS* ^S 00 *.^ 

2fi Sheriff’s officer giving ** boon without name (4) • 

gratuity to workers ( S) SOLUTION TO PUZZLE 

2S Chant about v.ine aud be fair- j^o. 3^79 

Thinl Great Year 

_ Baft MmIcbI ol 1977. 

Boafclras accented. Major credit cards. 
Special reduced rat* tar matinees tar * 
limited period only. . 

wta 120 perf. Mm.-Sm; 


BRILLIA^f-i^T^reiS FXCE ' 

WJ-y 'JtSES «ODI UCTfor?" D* Tj|'. 

■»». NOT TO BE MISSED.” Times. 

minded (Si 

29 Running through ihe middle 
like an ar.cicnt citizen tfi) 

30 c.ivinc nut and siviog in 1 $) 

31 Cheep* lsmiMially in a of speaking i6) 

No. 3,679 


tinraniQS Basaia 

t drisee turii’ from > *oaih 

' \friean >vkawr*' group (Si. 

- R,[n'ietic Ph.»vn }•> proles- 
“ J,onal to sensor «<fl»rer (S» 

S- 0 . 
ffi' S 0 B 

■ b s m 




a mml 

- , 


_ — 

0 G5 B 13 

- _ D 1-437 1592. 

- Fvi-uicd former e« stern p«ili- 

* S m ” fore -i«rl n ! ,a!k ^! 

5 ES«“ W* ™ Jld OTrm “. 

“h Radia i ComatanJcailon- 7je RBC SMwqr 

RADIO 2 and VHF wjjn.^Etor" s^a^B Tb/jMsVoruk^T BBC -Radio Garrick theatre? oi m 

&BD fa.m New Summan- 5A7 Rar B3C M Bodaaest. part 2: Rarcl. 206m a ud 94 Jt. VHF Eros. 8.0. M*|, Wm. z.O. Sat Fw ^3a" 

MoSs brtnSLir taSn£S fiftffLS 1 ' ,iS SrtcmWmilly SpojUna. MO a.m. As .Radio 3. 8J8 Rusfa Baur. TJMOTMYvvrtST. gemma JONES. 30 ' 

tar ThmLwT TJB Sm rffi Slacatrfiy- Onartot No. 9 »•« London Uvc. 12JD pj«.. Call In, ta MI S&&„^ TO 5ft™ 

a^sv&r* tfsiS ^ ^ e*c E . 

sstSi ?sysr szrsLrs ^ Toaisau ' 6 ^ ™ T”- 

including 145 Spon* Dos! 228 Dand 4 VHP wily-U»-749 kail., 525- 1 , . . GLOBE TMrZ rSi — ' n 2h 

'’am-Jion «5i mdmiLia 1« sad 3.45 V 30. pjil oped Uolvenlty. LOnflOn Bl’03uCastHlE Ero^ biI^wm l B9z - r- " • , , , 

Xaij DArvro 4 261m and 97 2 VHF MuL eddington’juua m^kenzie Com mere] a 1 and Industrial Property ' 

fjniira nrvk. 4 a John Daim >S' uekui- RADIO 4 5 jw a.m. Momina Musti* L.BB 1 v ®ENj<M4rN whitrow in e ' Residential Property 

, j, 33 ®^ : ? 5,n and VHF '^, rma \ ian - . ten THrils rABijE c#m “ v Appointments 

- paj simp'^ is. 7J4 Js^ l0 7M t ^!% a .k «• STuc^teSS Business *C . Investment Opportunities. 

ij5 n &S»ipyiiii 7, ^-4 > .?afc "c Ihc ejS 1 TSS* 5 ;. Ta to ftp Hoar iMwtunMii. s O'aock c*ii. us' lbc Reports - *” ° v ewn,ft 4- " Sway tuim. Corporation Loans. Production Capacity, 

• ” siory wrt ^ 7: cenz SS. x £2hta^* ^ ,“ nri ^ s - *-*> After EtshL ms nW , as8 77S5. Businesses for Sale/Wanted 

s &ZR Aat*™ ■* Jn - “p 0 ^ 0 ”} W*? Contracts & Tenders, 

“Mg Gtpital ***» " ' " | Hotels °and rSS*"* 

^ ‘■SiiDOh** BQQkPUbliShere Premium positions avail 
RADIO 3 Wm. Slereni VHF "dhv £S mrr WEND D V □R H , , S LLE,, f ran cits (Minimum size 40 column 

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i“ p . 3 Wo-re. i IKWtahr: prESnm/ _ waters o - Pot further details 




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RADIO 3 Wm. 5tercn& VHF 112 s o^Anmiaib Talk? oa,; cift " . 

\oar M'd-ic^. cnoiLT. ! -s «pe WcaJisr: prosrmnmt' m-as *t£ .-SS; .JCP™' " Maeteth." B.B« Bryim 

y»*' f£*y° vr cno.«“nun r,.Mfj K la Ihf vJf iw IrSP" ’.v?'.!. 5 !' MB-Mcta? Boroes 







CDrtpriiuLftions on complete ciucliv 
■« «®« ."NfcliO ttw. Wo* “ufagrT 

. t-jnatdy flnl*), qn July l« owUki t* 

cammrunona inriO,mi 

Premium positions available 
(Minimum size 40 column ass-) 

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■ For further details write to: 

■ Classified Advertisement Manager. 
Financial Times, 10, Cannon Street EC4P 4BY. • 

Mn t-.v" 

)• 1 Jf i 

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> t * »V 

S i 


f » 

Financial Times Wednesday May 31 1978 


[Malvern Festival 

The nonsense of Nationwide! You Never Can Tell 

bv B. A. YOUNG 


i-cnlng'currcnt affairs niaeazinc wou^d'^nst vniif iwi •■ nt L_ erc £ ie . f ®° years young” and an item manna machine book 

SA.; I ,n . ,ra \? ! cn ® rs - restaurants, with the rcoorter tm« i..* ii.™ , 5euieu 11 eru,reiy seriously j. dost-d the stage with a lattice 

however ^Vh^r*^ lam distinction suspiciously poking a fat Ger- man raisins charitv* funri^liv Anyway, having children in the I surround like a wall from a 
lettere^ a bou t Cr fnTl and man sausagej you know the sort seLting o Id * m aeaSes f S u?h as audien f.® * ™ excuse for poor] Meccano Taj Mahl. Interior 

” — ^ ^.I r ; C .L an ^_ Sh ? hes - ? f thing. Oh bow well you know Vie Paristenne produced the line J0l,rna!lsm; BIue Peter Jo,in l cwnfc aro hii>in>H hv a Mark 

Shaw's romantic farce is 
.treated by the Abbey Theatre 
be in .Company with gossamer light- 
I Fool iness. Wendy Shea, the designer, 
ivhere- ' has scrapped the author's 
s p re- J descriptions of the sets and en- 
y*- j closed the stage with a lattice 
in the I surround like a wall from a 

poare and abortion come from jo r — ■ — k* ne uu« craven'* \wi-cmunrf nmvprt aw,B "'" a •».» «*■ “*■**•*' 

the public, when vou write about ^ °? lbe wee £- . When the inter- T _ ,* d drop, exteriors — the Marine 

JVnticmiritic they come from the itenfs whYrh hS3 n ^K^° 0lh f r ^led the 'possible incon- 5i« and ne?d toi^Sa?' Hotel terrace, the off-stage view 

orodupcrs items lAoich had nothing to do Eruity of a onpst dcalm a in such ? 56 ana neeo me Dost journal- 

P MhS?' iiMm h™™;™ * With comparing life i n different material andasked” lln ? tthis L sm ' not the vrorst - Similarly, of the ballroom — by pretty 

venrsi- happening for parts of the EEC, but which what's called a full frontal’ 1 ” funny items need the best pos- coloured inventions. Within this 

"or^Wv^^ty KTt we IV. weU worthmakin K W anS the 1 vicarrep'ied ” comptete.y enclosure the necessary furni- 

one time for its rnAchaniMt in J[otchinE. mttably Bernard seriously "Well you can't see her ° ot lh ? 4 leaden t tuff tbat wei 8 hs «*» P laced *« P“ re| y repre- 

cDtitucS! and rilSSo ?£ Claris's aim report on the Genesis face." down Hems such as the maggot sentatianal. arrangements. ■ 

of subjects, or the style and r £ ck *!£ Ur ' ,*“2 Fri day’s item It is the implication of that ”£5; The result gives a charmingly 

hr. bits of its presenters where- 2 bo !i c the mixed reactions to the . love and marriage " line which Th® offensiveness mentinned anecdotal feeling that never con- 
iinoo one of the orodiieers in flood ®f German week-end pro- is particularly significant for above occurs on the frequent flieis with Shaw's intentions 

high and righteous dudeenn in l??, 1 * 7 buyers 1x110 eastern France, this article however. The howlers occasions when' an interviewer apart from one considerable mis- 

his own words of MuShit (You buy a blt of land - Put a above are not listed for the sake c “ts bis subject dead (ail too calculation on the director's 
whatever a small ermine hTmiv caravan needing no planning of making fun of Nationiofde. °{ l en immediately after asking part. Patrick Mason has intro- 
criTics mav sav P ordinArv P e ™ iss i°n on it, and build a b “t to convey a serious point: h |m a question) with an urgent duced a dancing Columbine and 
viewers warn a hirar shelter” for the caravan. Then that the programme tolerates Phrase such as “I must stop you Harlequin who start the proceed- 

now and then andMnthlwrr^ you take away the caravan > a °d even seems to encourage a there I'm afraid." logs by removing white dust- 

ing about Third World rtarvation 1 ? ey w » ere * bo *'f v ® r . «- riandard of journalism which is When the item for which you sheets from all the constituents 

and the nemron bomb all *}£ “P]* 0118 - An awful lot of the rest pitiably low. bave been silenced (as Paul of the first scene, including Dolly 

time and whatfvrr the critirc 1110 weeks material was the T&e line mtroducmg the vicar Sieghart was oo Thursday during in the dentist’s chair and Valen- 
mov' think this morMPh k 5 ort of thin S - vou Hould ®*P®ct w ®? a confusing non sequitur in his comments on modern police tine about to start extracting her 
obviously nonVilar Wwsn 5 from the state tflunst office, laud- which the very concept it sought weapons) turns out to be tooth: and who later, between 
lions watch V« iunuSc m nv^h' VS* th ? J0ys of the Bruges canals to highlight /going together) was “Puzzle Corner" then you look acts or even in them, dance little 
M is I rPsnM?Si.h S (has the smell really been eradi- hidden behind the much more pretty silly— though nowhere expository dances. The idea, I 
oni to hP SuS r. «rS c ? ted - or did Prank and Slie J ust P ow ® rful introductory concept of near as silly or frivolous as the take it. is to suggest that the 
alihnuHh k,„h,L; c ^S os p. n , ot *» mention it?) the love and mamage. programme Yet again, however, action of the play is no more real 

aunougn n snouw ot said ihat Festival of Giants in Ypres. One recognises the difficulty it is the triviality in the form, than the coinmedia dell'arte; and 
pramm** - -it the strength of Belgian beer fad- of writing hurried links for a the style, the approach that is this conflicts with the basic 

no ia 1 2™m. mittedly this item was so brier, dally current affairs programme objectionable and not the light* farcical requirement as I under- 
1 and Bob Wellings* “Wow" so without using such taboo phrases ness of the items themselves.' stand it. that you must 'at least 

scenes are backed by 

Stephen Brennan, Cyril Cusack, Ingrid Craigie and Desmond Perry 

Leonard Bart 

a j- 1* nw#»vf»r loci Wfip irv •• euuipj »» uw so wjuiuul uhiug hu\.'u muuu ui uie iiem^ meiuseives. wtanu u. tuui yuv Jimax dt jicnaL 

mwiii im , ani hignous that he could, have as “ And now for something In the fifties and sixties when transiently believe in what you Cnsack as William, the waiter, conscious or unconscious fun. good where he is parodying her 

nrnmkinr "j of been comm enting on its weak- completely different" But it is everv reoorter in Fleet Street »®®- bobbing obsequiously to his out- Mrs. Clandon, with her exag- intellectual arguments in what is 

TwimJarnTne-e mmn.Hi lirL ness, yet ! doubt it) and the joys said that the reporter reached wanted to move into television. However, no more comnlaints. rageous customers, no matter gerated rejection of parental nothing else but courtship Most 

bobbing obsequiously to his out- Mrs. Clandon, with her txag- intellectual arguments in what is 

And ^° . tber ^-.^ : ?ft 2?.Tv eSd - y Still, it would be unfair to and ^ bland * inoffensive fas one still does) not just for with everv appearance of taking respect from even the most dis- having to maintain a determined help being funny so long as they 

for instance Frank Bough p re- S j n „i e out g„ e f 0r (except for some instances which the items themselves but for the them seriously respectful. mien. She and Desmond Cave are played — as here — without 

sented The Story _oF Two aw j rd because Nationwide as a we 51,811 return to1 - a™>ahle and wa y they were handled. “Light- At the centre of it all Is Cyril All around him are figures of as Valentine are particularly exaggeration. 

Fords, one built in Britain and wh , does f old cljch I f r n J often tedious presentation which ness" in a proeramme was as 

one in Genk, and although this solecisms what the Chelsea Roval ls to be de P lorwl not the much a question of their 

nolinn of comparing industrial Hospital does for old soldiers su PP° swJ triviality of so many approach as of content With I e .. . w 

products and the mne taken to o„ Monday Martin Young talk- ltems - Any sane pe« 00 would A'ntfOTucide that is not true ex- Sadler S Wells 

make them is one that has been - about the Enropeans in Kol- a 5 ree that viewers should not he cent in the case of the admirable 

used by World fn Artwm. The - aD0 “J “« f hat P ^eV ai orltv offered stories of starvation Richard Stilsoe who seems to ^ 1 1 , 

“thankfully have been rescued^ |P d . th * ““j™ 11 b ° mb * and hare ?om ® sf 1 ®® 1 ® 1 dispensation. f OfOpOC r\Q I I Pi" t r*T>TCT) 

« nn S InL 0n Tuesday John Stapleton de- with such an un- Professionally sneaking, tele- V^dl OX/C lO DdllCL bv CLEMENT CRISP 

‘J* i S / I„ 3 /*2 d . ,dea and dared that “most Interest cen- usually ^'8® mixture °f home- vision has lost much of its allure - 

rJSkfJSSrtlil 1 ^F. r .rthl5r e tred round ” something or other. b «°° d mothers and young and no longer has the nick of 

^ ™ akC ^ C “ mp S, r l^„ Furt Jl*T; On Wednesday our old friend ®W dren and homecoming school- Fleet Street but if Xntionwirie 

iii t jt still 3 oond ides 3ttd «John Stapleton dc~ u&uoiiv i a r rniviurp of honic* _■ ■ _ • " . , * ^ ^ n DaucL bv clement crisp 

n ‘J- / ,I„ a . ,dea a . nd dared that “most Interest cen- usua “3 large mixture of home- vision has lost much of its allure - 

vESIESi tred round " something or other. b «°° d mothers aod and no longer has the nick of . 

more the conclusion that Wednesday our old friend nnri Flee , t Street but if \ntiomvirie fbe Ballet Internacional de Which must serve as a preamble cast by Robbins' ballets about dances led by Zhandra 

!Sn‘^i?lSttta. S “Justow Critical” was quickly S2 S.SJ.hS2h 2E£L2TI * t0 J make bctter pro T Caracas is just over two years t0 the fact that most of the dancerk and a piano, but it is Rodriguez. the company's 
suited from inferior main- fo,lowed b V“ Pe^P 1 ® you and a ° especially difficult audience to p-a mm es and attract respect and oJd At its first London shoving dances on show prove, once neatly made and shows off its ballerina and a dancer of lithe 
Jenancc’mSJhnds - was Sv 0n Thursday Sue talked ca ^ f ^;.. ... 0 , - nc , . j? not srraoly intent u non keen- lasl n ight-tbe company is here « cast well. The piano used last brilliance whom we knew with 

oected and interestinc 3 about “the famous bicycle-riding w J?J._ d i° t S bt s I n? Tjnr? ra J r ^ 1,IO J 1 £ etS tU 2 ed fDr the rest of this week— we again ’ that choreographers are nlfih| was a b rute; the girl's .American Ballet Theatre. In 

p \, ** L™:*™ Q ue ® n Juliana" and moments «« '* a ' te “ s n S-ISPSISS t0 ,? BC1 d unng teattme when could appreciate the extreme very, very hard to come by. dresses are cut to reveal Ihcir this, and in a predictable duet 

finil- later claimed that “you might {J* ™ “JJ 11 aud, . ene ® 5 . ar ® thought to be dedication shown by the dancers. In Vincente Nebrada. artistic armpits, hut the cast of ten be- by John Neumeier entitled Ariel 

” n J>. JTvlIr consider both as unlikclv as the Pi? 1 J dj8lracted - tn ®° perhaps And then pause to. reflect .that director and chief creator, the lieve totally in what they do. and (sprite, or detergent, or aid to 

other” Fridav broucht a nii'c' wo ^ k on S e # £ ua li y within the short Space of its company has an efficient choreo- a danseuse in red. whom I take lo broadcast reception is nowhere 

promi. e. There were occasional ■ y . again, significant that news- of their lournalism. whether the a vicion(>a tho rnmnanv has Erranhic craftsman: bis Our Marifipna Mcncia has rimri which hntions unnn an 

currency iranslations (“this v^eran motorcyclist described as piper journalists showed the items are trivial or momentous". ^Sfre? a re^ertmy. P aSd what Wuttzes to^a n^undam mable tor- mercurfa? 1 speed wS ,C a‘ ‘ lovely adagVo frorn^ Molert Pi 

* is clearly a strong ensemble rent of banalities by Teresa lightness. (The printed pro- eerto. Miss Rodriguez is 

-w— t -f . rri -0 “f feeling among its 22 members. Carreilo, stands in the shade gramme, where not confusing, is a dancer or distinction. 

lH Irrot* ot I A\I7’l r ACnnt , T7 totally uncommunicative). She also appears with 

I j I V I eJL- 1 I VV IV Ly LX I V Nebrada’s other work on the mensely willing cast, ii 

^ ^ J Old Vic bill. The Mow and lhe Children Sappington’s Rodin mis 

existence the company has graphic craftsman: bis Our be Marielena Mencia. has clear) which battens upon an 

acquired a repertory, and what Waltzes to an undammable tor- mercurial speed and a lovely adagio from a Mozert piano con- 

is clearly a strong ensemble rent of banalities by Teresa lightness. (The printed pro- eerto. Miss Rodriguez is seen as 

feeling among its 22 members. Carreilo, stands in the shade gramme, where not confusing, is a dancer of distinction. 

totally uncommunicative). gh e a j sn 3 pp ears with an im- 

Nebrada's other work on the mensely willing cast in Marao 
Old VlC bi51, ' rh ® 11,0011 and 1,lte Children Sappington’s Rodin mi s en vie. 

ft possessed, is le menu touris ■ This presumes that Miss 

tique, and spends much of its Sappinglon’s choreography can 

. np-j rTri /^1 time whipping itself and its cast bring anything to life: its effect. 

1 I IllK IvM I | flCTW i nt ° an ®tiinic frenzy lierore for me. was to suggest that only 

X llv/ X IXX JVLOXX V^IUku collapsing into the direct the brief moments which copied 

cabaret roguishness. It offers a the poses of Rodin sculpture had 

... series • of 1 incomprehensible any artistic vitality. 


The Tewkesbury Elgar tershire and their supporters are formers bave by now given all first parts of the trilogy make a 
Festival running from May 21 1°®®' musicians, many of them the major works several times, complete whole, basing this on 

In June" 4 md held rnainlv in semi-professionals ot amateurs. How prepared they were was diary entries, on Elgar's letters 

iL v.hnv T , M The nrnmmme looked form id- Ahown when James Walkley. the to his publisher, and on internal 

J The ZZ zJi TlieTtor tnusic director and bass soloist balances between thettwo works, 

looks kiok to the first such able, oven reckless, me lour , _ _ J Cerlainlv Elaar chanced his 

Festival under RicMer at Covent religious choral wria as weU as ^ i finTj«i^aSd overeU 'scheral more than once 

Garden in J904— neccssanly an the CoronaUon Ode. The Spirit be ^ 10 ‘ d from the time (before Geroutwsj 

Old Vic 

The Turkish Clogs 


Bending over backwards to the over-protective mother and 

JiST. It has this distinction: tral repertory, and evenings ot Potor __ ___ against ill-health and depression, *- MU U1 ‘ B carries the girl off to the hills, 

Tewkesbury ls m Elcar muntiy. nicely chosen smaller pieces. But wi nhsvp pvnppi b ® produced The Kingdom. There gratulate them on the idiomatic, perpetrating the deed of abduc- 

and a tewn he often cvcled to. plans for this Festival were laid reaoers wui nai e expen- rema | ns the fact that sketches of even racy, translation of a whim- tion in the afore-mentioned 

.■M the Philomusica ofGloucos- four years ago. and the P®*- M ?L.t!Si£5r. It inu text and music exist for the third i sical folk tale of love and scrubbing scene. He is aided 

— f?-L ou , l5t5m ^ g c !5 nt of 11116 oratorio, and that he allowed his j marriaRe ^ Turkish clo'-s and abetted in this by the 

Festival was the performance on public tD expect it. often re - 1 ,^ Fn g 0| 'i,h flm!. ThrvillJe scheming widow, grateful for a 
one day of The Apostles and ferrxng to it: but this would not i ; be , Eng ‘ ,sb V ow *' Tbe vll[ f* e roll in the hay with bis best 
The Kingdom* This was some- he the only mystery he fostered • Headman. Tor instance, proclaims friend, a grinning nincompoop 
tiling Elgar wanted. He con- that a simpler, less interesting, i in one of several insufferably with a red rose stuck in his right 
fided his wish, to, among other less self-doubting man might leov pD p songs that “I don't ear. 

people. Herbert Sumsion of have explained, or even not J blink. I'm no fink": the village when the Romeo is bundled 
Gloucester, a father figure to the found necessary to ma*e. Romeo manages to rhyme “ pain off for trial, it is reveaied that 

Festival’s players and singers. In any case, the gain in bearing an d joy" with “Boy oh boy" the girl is of a legal age to marry 
and teacher of its conductor the two works in one span is Obviously everyone is more up and she scoots off to the prison 
James Cowley. Elgar never great, in particular to experience to date in remote Turkish to elope once more, and for 
attained his wish, and so far as the working through of the villages than we assume, despite good, with the cheerful rapisL 
I know this was the first time "Spirit of the Lord" theme from i a n that outward traditional Beyond that there is little to 
the two. thematicaHy linked the very opening bars to the 1 finery of coloured socks, worry report, although I daresay a 
oratorios have been given with stilled, receptive choruses for , beads and bejewelled headgear, minority audience might find 
only a couple of hours between Pentecost — how significant that ’ When the ladies gather to scrub something to enjoy in the 
them, though recently they have among the finest, pages arc those : socks in the square, they may primitively arch quality of the 
twice heen done on consecutive 0,r awaiting inspiration. Whether kneel over a tin bath, but at performance. 

days at Haddo House near ® n e lal5e5 , tbe works as a musical least they have a packet of Omo. — ; — — 

Aberdeen. drama on the earl> Jjtajreh. or as The pla>v> by a modern author. . rvit* I?. . 

It has generally been thought 5eed^ T both) 'the achievement Ncc ®, li Cu . mali - is , neall - v sm ^" | ||#* llVtf*** 
that Elcar intended to compose a ? eed - 35 D0U1 ' *f e , ” ‘ t° r ® d ®" d charming enough. X1IV XI V V ■ 

Sfnf oratorio. In a lecture at ]■ courageou* and profound. Last replete with slock commedia 




ZURICH- JUNE 13-1 5, 1978 


Interconvention c/o SWISSAIR 
P. 0. Box CH-8058 Zurich 
Tel. 01 8121212 

Tewkesbury Jetrold Northrop Saturday Tewkesbury became character* such a<? the scheming 
Moore suggested that the two Elgar's Bayreuth. widow, the 'puffed-up Headman. 

Round House 

Big Sin City 


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One day someone will initiate 
an award for the Worst British 
Musical of the Year and then 
shows like Big Sin Ctltf will have 
arrived. While it does not quite 
make Fire Angel look like 
Oklahoma .', it is not Tar off doing 
so. The sin city in question is 
a place of coloured lights floating 
indeterminately in the wake of 
TV light entertainment where a 
hapless pop singer treks through 
a not very nasty underworld in 
search of his beloved Dolores. 
When he finds her ho is not even 
gentlemen enough to share the 
microphone, with the result that 
old Dolores dies, quite literally, 
speechless, as a rival hoodlum 
-sticks a knife in her belly. 

The pop singer is befriended 
by Jack Wild as Slic in a three- 
piece suit, a character modelled 
on the Artful Dodger in Bart's 
Oliver ! in which, of course, Mr. 
Wild made his name. The 
musical-spotting game does not 
end there. Sin city is populated 
by two rival gangs in a fhint 
acknowledgement of West Side 
.Story and a pasty-faced Disco 
Kid is an echo of the emcee in 
Cabaret. Having gone thus far, 
the script throws in fatuous 
send-ups of The Fonz in TV's 
Happy Days. Mae West, Starsky 
and Hatch. Elvis Presley and the 
punk rockers. No human life is 

Mr. Wild squeaks away like 
an upstart Archie Andrews. 

vainly trying to control our 
wandering attention, while a 
rock band perched on high thuds 
tedinusly away at a score berefl 
of charm, talent or melody. The 
whole sorry affair, credited to a 
fraternal trio of Neil, Lea and 
John Heather ( is a dismal tribute 
to the unacceptable face of 
British showbiz where the 
Eurovision Song Coolest reigns 
supreme and everyone jiws 
away ‘as though auditioning for 
the part of Lionel Blair. 

The director is Bill Kenwright. 
Of his company, only Michael 
Price as Ai. given the one mar- 
ginally acceptable song of the 
evening, “It'll Be Man," makes 
any kind of ' impression. I am 

mu convinced that it is a good 
one (better, certainly, than Su 
Pollard's of Mae West) but at 
least he comes across. And that, 
in a contemporary British musi- 
cal. is something. 

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. * - 

Financial Times Wednesday May 31 1973 


Telegrams: Flnantimo, London PS4. Telex: 886341/2, 3*3897 
Telephone: 01-248 8000 

Third World knots from 

Wednesday May 31 1978 

the IMF’s strings 

When Tories 


* ▼ VJ.R JL. M. A wkj TT is a Ions way from the 

I barricades of Lima to the fA 

£9 11 * headquarter? of the Inier- 

♦ I I national Monetary Fund In 

ffl II I 1 1 I I Washington. But last week’s 

-B. H>U 141 w riots In Peru have again 

reminded the IMF of the hard 

THE BRITISH Conservative. Whltelaw, for example, was social and political consequences . 

Party is dearly going through a clearly unhappy about the that its polldes can have, 

bad period. After the elation approach to immigration. Mr. - In the paat few - years and 
that came from defeating the Prior is unhappy about the par ucularly since the oil ’crisis 
Government on amendments to approach to the trades unions. and floatin g exchange rates, the 
the Finance Bill three weeks There are others, too, who TMF has Seadilv exoanded its 
ago the Party has repeatedly believe that over the la* few ST 4e w?rid? toanciS 
run into difficulties. The opinion months Mrs. Thatcher has po Uceman. The money that it 
E° 5 * ta rt ha . ve moved dan S erousJ y far t0 tte t0 lend t0 Countries in 

turned against it- There has also right— perhaps even to the trouble has given it the power 
been the leak to The Economist point where she may throw t0 lmpose conditions in return 
or the report on the future of away the general election. Yet for it Hoans. And the Fund’s 
tte Ditmiuliaed industries m a there is very little evidence of wllIlngness to withhold money 
form that was far from ready for this concern being expressed thpsp met has in turn 
publication. Now it seems that to her. Mr. WMtelaw has swal- J en f t enhanced credibility in 
the leadership cannot even lowed his dislike of the immi- " h . of coinm erciai bankers 
handle a relatively minor gration policy in the interests “ e eyes . of commercial mmKers. 
change in the staffing arrange- of party unity, while Mr. Prior Thus, in countries as disparate 
ments at the Conservative Re* simply goes on following his as Jamaica and Turkey (not to _ # , 
search Department without own line on the unions in the mention Britain) IMF agree- 
a rousing suspicions of deep doc- hope that in the end modera- mcot to lend money has become 
trinal and nersonalitv differ- tinn will nrpvaii. a “seal of approval." an essential nWn r 

mm -4 


V??: **»*»&& 

o v - 




.•& . ' - -■ : 

' « 



' \>J5c&a> 1 




Fund’s methods "a crucial underpinning. to the whole 
structure of international credit." 

tion that threatens to reach 
epidemic proportions. 

In the face of this. Fund 
programmes vary from country 
to country. But almost all call, 
first, for a reduction of the rate 
of expansion of domestic credit 
(DCE) in order to help curb 
inflation. Second, exchange 
rates must be adjusted so that 
they actually reflect differential 
inflation rates and make exports 
competitive. Third, strict budget 
, ceilings are proposed the better 
111 to balance expenditure, and 
income and borrowing limits 
are also imposed. If possible 
the Fund prefers, as in the case 
of Turkey, to gain agreement on 
these well before the actual 
standby loans become available. 

Any medicine prescribed 
must work quickly if real dis- 
aster is to be avoided and even 
the most rudimentary central 
banks and civil services usually 
have statistics that cover these 
three areas so that the IMF is 

. . . facing opposition from 
developing countries. 

veloping countries still harbour 
against the influence of rich 
countries such as the U-S. and 
Germany. The Fund is chronic* 
ally short of resources to lend, 
but recently it has not been 
able to increase its quotas as 
much as it would like because 
of opposition from some parts 
of the industrialised world. 

- At the recent interim com- 
mittee meeting in Mexico, for 
example, the Germans once 
again argued that a larger 
quota should be accompanied 
by an even greater measure 
of “ conditionality ” than at 
present. (The Fund still allows 
countries to draw the first 
quarter of their assistance effec- 
tively without strings and then 
sets tougher conditions for the 
final three tranches.) 

This has been one reason for 
opposition among developing 
countries to the appointment of 
M. Jacques Delarosiere as the 
new managing director. Some 
countries feel Him to he but oE 

tnnal and personality differ- tion wiH prevrij. fcey^furShims from private ^ ^ ”“ a !, n ' has usuaUy w within ableVmonitor the implement- with the -health of any one ^pithr with theirneeds and, 

cnces - It IS not difficult to see how Key to runner mhuis izutu mg 2 d per cent was orietaatlv eieht vear* and rhr» mn din™,* k,„ «nth the ctahilinr _ _ v.. 

Intrigue T^rn^harp^ wilHng to l roll over or extend ^in 5 oId now attached typically have to be centrating on broad figures like of the international monetary training, too ready to take "In* 

intrigue ^ SsSu tedflUte been abandoned and new foUowed for two years, during DCE or overall budgets, the system. They resent what they struct ions" from large share- 

There appear to be two broad In n „r Ca lH Pa, T ® , _ . . .. pembers, or those who are which the IMF sets performance IMF says that It steers a wide believe to be ever closer links holders in the Fund like the 

views about this within the na tura l t*g| c nf the I ". case ° f j n ” , e asin 8 their quota, con- targets which are closely berth around the politically h ‘'‘'een the Fund and prh-ate 0 r Germany. " ' 

between the Torv 2£^ES!I!S *.2 “ mo “ Itorcd '.. . sensitive issues of which items banks- there are hundreds of Finally, there is a range of 

licit** In short, there is* noth bis the Partv still has to live down toan tho^ na tions can bear. ftnds iiseU pe 17113 neady short a ” , ? iv ® ,y u,,,e ’ *" that private banks give to the results and "decisive- action the 

L K„ . 4u.u 3 itc romitatinn of beine less “ “ . ^ form of credit tranches, of usable currencies to lend, speech. Dr. Wttteveen, setting Fund that «ive it much of its Fund seems impliciilv to be 

?ew h hnwev^V ^2' TS, . 0th ^ r fitted than Labour to deal with 1-351 t year ' ■ af if r + w e mey must accept conditions - One recent estimate said that, aside charges that the prescrip- ] eTe JL e dealing wUh favouring a "strong man" ap- 

rSlLfSST; r=ii? at f here 15 the unions effectively insisted that Egypt These are usually light for the on the basis of usable tion may be wrong altogether. E328L in trouble Some P^ach which .ometimS 

isatimL f iack if ha i/on beXn ‘ !? «»«*“ i* rovided . t0 meet countries argue that commercial seriously .weakens democratic 

that private banks give to the results and "decisive"’ action the 

tT^t°rl! ia 'T betwee “ Ffrst move mt bloated govemment **** ments- theFun^ad^TceT'but Fu^mTy have 0^ believed "th'ar“th'e“pa«"di 

h aps P asu sp fcionof &*£ „ At present very little effort jg&STtZT S ™ to leave it to the IMF 'to make The debate 

haps a suspicion of intrigue be- At present very lime enore =-r - ^ week ^ simitar " 6 * wul 10 ™ to leave rt to the IMF to make The debate raging about 

tween factions. seems to be being made at re- measures had siroila? results in .ddSnS^to f 31 "*® ofthta'the^und country judgments but that this is intense. But even those 

The two views are not neces- conciliation. Mrs. Thatcher goes enormous strains tJ£d t^hes S' ^ ye ?L° f ’ 1 - 052bn -. . In 195 J 2 ^otth sTaJdS as even when an IMF - backed P™* most critical of the IMF are 

sarily incompatible. It is 0 °e way and the liberals an- withm Jamaica have almost “55?- ' - the F )“ ld by contrast, the world import J® a< ^®P\ l “® Vj^y® a f ** grammt is approved, private forced to concede that without 

possible that Conservative for- Dther - There is no sign of her rtainly not eas6d by the ^ ^ as ., below . $10flbn - b “ l Derio?that wnoi^rnanr banks often P mve ransr reluctant it the situation, at least in the 

tunes will recover without the trying to present a team, nor of l! JL recently agreed feciUties - 4 Fo £ exam^ the the Fund’s stock nf usable 1 nJhSiH Z to ,end much oew moncy Eor short term, would be very much 

Party doing anything very much £ » - Shadow Cabinet gg— £ F^dJaS’s ^ worse. In their turn, many Fund 

to run its affairs more smoothly, trying to point out, to her the government and even in Turkey faigher - lii common Further ^ ^ 0131 the o fficia,s "e” that 

And yet to the outside observer dangers of an immoderate thfi conditions accepted by the may 5x1,1 themsclves m teiu ' Fund staff argue that this 1 Because the Fund tends to era P haai s on the exchange rate longer-term problems need tack* 
there does seem to be an in- course. It is said, m self- Ecevit Government may yet scarcity of funds makes it fnt _ rv ___ , h th sihl _ and the. rapid changes prup<^ed ling but they say that this can- 

creasing amount of evidence of defence, that the differed- precipitate a serious, possibly a . ■. ' absolutely critical that the IMF ** by thd Fund can imf^ise not be their job. 

there does seem to be an in- course. It is said, in self- E cev ft Govemment may yet 
creasing amount of evidence of defence, that the differen- p recjpjt a te a serious, possibly a 
lack of centra! controL It is. ces between the two sides fatal for regime. . 

to say the least, odd that Mrs. a « exaggerated by the Press, . , , develonine • tllPir 

Thatcher should frequeull, and that may be true. BuMhat ' ' ' lUClr 

make speeches on subjects of »s always Jie case, and politi- ^ “ pplying the wrong solutions PpnnnmipC 
direct interest to her Shadow cans should know it The stones ® Piw ^ develop- CCOIiOmieS U.LC 
Cabinet colleagues without con- of splits are likely to go on un- J ^ fbreins thS^ II 11 

suiting them or even advising « some luscious attempt a USUally all ’ 

them in advance. It is no less “ade to heal the rift, and they J r _, aHv _ lv , inint p rpsTed J 

odd that she shouid appear to will ™"tinue to supp^amxnuni- [n ^ differences between blit OUt Of 
rely more on the advice of a tion to the Labour Party. If Mrs. Mimtries L 

few back-benchers than on the Thatcher cannot bring herself ^ a sp ^ ch earlier this month, rnntml 
most experienced Shadow to make the first move, then it ~ Johannes Witteveen. the COflllQl . . 

Cubtae, member, A„d it tha, h 

impression is incorrect, it is not exactly her best friends at that thp 

preserve its international _______ 

credibility. If that should be 
compromised, the consequences f t _ 

could be serious and this is a • tllP Klltln 

concern that is never far from 

the minds of the small group of ie r'hrnni/-«o 11 t 7 
senior executives that run the L/lIlUillV^Ctlljr 
organisation. * . e 

The Fund argues that by the SuOrt Ot 
time most developing nations 
approach it - for assistance, «■ rpcniirPf 
particularly standby loans, 1 

their economies are usually all 1 . — 

but out of control. Usually 


by thd Fund can impose not be their job. 
immense strains on countries pQ r (he purpose of a standby 
Claims -that the. IMF takes ^ f 0 huy breathing space, to 
great, care not tn impose give countries a chance to re- 
specific policy remedies are organise. If this means that 

„ asid *' countries are forced to play by 

The fact is that they know Fund's rules, then "they 
what the consequences will be have an alternative which is to 
if they say the budget must tel , tl le Fund to get lost and risk 
■ be reduced that cutting a sub- almost cer tai Q insolvency,” one 
sidy is usually the only choice ” offic - ia j said . 
said one African. The Fund’s So far. the Fund has shown 
- -faith in the workings of the itself most ready to ackuow- 
mm market he added, can result in lodge political and 
great hardship for- the very objlctiJns in developed coun- 

S tL inrorrect. it ls w,7u ',i H h ‘ hfir Ho^tLoi acknowledged that the Fund’s but out of control. Usually Rreat hardship for- the very objections in developed coun- 

d. -il R i» th 1 S0 ItUe IS d0ne t0 mIIim tn fen her The use of “ conditionality " has DorarT balance of payments ^ey have large amounts of poorest people in countries tries such as the UK ml Italy. 

d Tn that - , . . thp rvlns^i^tiw now hecome a highly-charged h bMase nf private debt which they can no tion becomes critical. Dr. Wit- a r :cted. In some other nations, like 

criticise y Mrs Thatcher S ° There Party \ a vin° looked good forso S 0 !,* 11 ? 31 ls ? ue ' But he cnncIu * a sudden fall in the price nf lon * er “f^ce and which com- t -*' ee ^ said * \ s . "inevitable The charge is also made that Turkey, the West recognises 
?c a sn Z lon?in S^oLiSon now oc^s “5? Promoting adjust- a * ' ^ b the merdal banks refuse to supple- a least : the initial corrective tiie .Fund can do nothing to that it is very much in its wider 

annptrt re^iilnrlv tn hvna« Wr matter mast .. — tn hennme avnilnhlp ic HecieneH u* “ — — - >“H u 'c «a uic uwiuia ui uura out un: x uuu may not nave 

appears resuiarij to bypass. Mr.matter most national credit 11115 seems to J ^55 ” ,2 ^ “ ;“ l gn ®5 for the country’s major export. h-'*i a country because "by nations. This is one charge been quite so accommodating in 

me an increasingly important “ n „51 At **“ s * 1 ® 6 &ne - P artl y aPP^Priately pricing capital the Fund would probably accept th e poorer countries where, so 

T^T ”1 1 • A contribution to the continued m .pj. because of the oil crisis and goods which developing But ever since it was founded far. the medicine has often 

1^1 mil DliriTlT °J. the worid economy " av , Die ' „ . ____ ^ partly because it has become countries for the most part the Fund has been unable to seemed the hardest to swallow. 

JL ^ Vr 111 lively! Ill Tbe Fund uses a rather In recent years, the IMF has politically attractive to subsi- import (it) encourages the bring much influence to bear principally because small econo- 

MT J clumsy word — conditionality— proved extremely flexible in d ise food or investment budgets substitution of capital and this on countries that do not need mies respond much more 

_ _ as shorthand for this approach, making up loans packages for are too large. Exchange rares betas to promote employment” its help. The new IMF exchange quickly and much more starkly 

87 Each of the 134 members of the various countries, with the may have been kept artificially But many developing rate surveillance powers, which to TMF remedies. This causes 

I 1 1 11 la ■111 Fund have fixed quotas which result that sometimes members high so that exports are not countries see the prob’ems have just come into force, may resentment and a political prob- 

▼ Vff are periodically increased, can borrow much more than competitive and imports are quite differently. They argue make a difference here. lem for the Fund which it has 

•' Three-quarters of them will they would appear to be entitled mounting. All these problems that the Fund's first, and often Another constant theme is yet to resolve, but one which it 

WHETHER or not regrettable, retain their competitive posi- have been paid in a member's to at first sight. The money are often exacerbated by infla- overriding, preoccupation is not the resentment that many de- is unlikely tn be able to ignore, 

is in no way surprising that tion in export markets. If 

No blueprint, 
thank you 

the Economic Policy Committee they accepted this aspect of 
of the Organisation for Eco- the plan, it may have been 
n«niic Cooperation and Develop, hoped, they could more easily 
men: has turned down the be persuaded to acrept the first, 
detailed plan for concerted which would require them to 
growth circulated by its secre- accept a relatively large s>hare 
lariat. This plan had two of the common responsibility 
separate aspects. The first was for collective action. 


Going West 
—not East 

But the two have found more 
common ground uver the ques- 
tion of incentives. With Halcon, 
Malpas says his take-home pay 


based on the estimate that In the event, the plan as a a little-noticed aspect of the will be several times higher 

growth in the OECD area this whole turned out to be unac- decision of Bob Malpas to give than he Is able to earn here. He 

year ;* likely to be slower than ceptable to a significant nuin- up j(i S place as the youngest was previously chairman of ICI 
a; first supposed and that her of Economic Committee member of the ICI board, isthat Europa. headquartered in 
unemployment will rise to a members. It was widely |, e h as chosen to throw in his lot Brussels, and has speni about 

still higher level. Given the assumed that the German Gnv- wi1h oni j of the hardest critics 12 of nearly 30 years with the 

general feeling thar concerted ernntent would ( reserve any mea- of East-West trade in the U.S. company In foreign countries, 
actum of Mime kind is necessary sures it was willing to take for business community. Ralph a s a director his pay l.i-it vear 
tn produce a fatter economic presentation at the Ecnnnmic Landau. was between £55,000 and £hv 500 

recovery — the secretariat Summit :tn July ’. Bui other rep- La,,^ is chairman of Halcon |a .married man with"' no 

rcckuTie,. that average growth resentanves. too. felt that international, reckoned to be children would be lefi with 
this year would have lo rise acceptance -or the 'need for rol- QW of Uie Iargest privately- take-home pav uf between 
from a projected 3* per cent owned chemical companies in £16.800 and £17.700). But now 

4-1 per cent if unemployment ,h ® n J to accept a detailed blue- ^ wor]d . From the plaLform Malpas has decided to give ud 

were to be held at its present Pnnt ftnni ' ecreinriat. Qf the society of Chemical In- his chance of chairin'* ICI in 

level — the planners suggested questioned^ a ,J S dustry in Vienna lasr autumn he order to seek his fortune across 

the amount «f stimulus which a, 1 j; a >' a ea ?^. k0 q estl n “ the launched a vitriolic attack the Atlantic. 

each of the larger OECD mem- validity of itv ecnnnmic tare- the level of western ^ 

ber governments would have to casts and ‘' f the p re- i ea( jiiio to the Comecon bloc, 

apply if the overall target were seriptions based on ^ the^uideirtransferoitech- Cgnada’q PliPsf 

to be achieved. They were. position nology and the “mindless" way gucai, 

by itnpiicalion. particularly . . . . - this would undermine Western A sign of the fast-changing 

insistent oa ihe need for a ™ aecismn 01 rno Economic f * Mtilrl ho nnhoiif% 8_ t IfD^S ill 'Rhnrixaciai hae Kaim th or 

agreement with RCA, declines! 
to comment on.whether he plans ; 
to join Morgan Edwards next , 

Gang of mil'ions 

markets. It could be unhefitat- times in Rhodesia has been the 

r ~-nj& Ywrrrtf ®’ or y*®* 1 * starry-eyed Wes- 

IpudC lytal teeners went to Uie new China 

/vL • and came back saying Peking 

/Oil had eliminated crime. What are 

/ lY they going to make of the 

/H . 9 , latest situation? Only the other 

S&MR day Changchun radio, tn Kirin 
EwJBBiww J province, part oF the old Man- 

nHm// I churl a. announced there were 

■PWw/ atf 7 just too many criminals to 

ImBP* / punish. Admittedly this has 

1 Jnuukal c° me in the wake of the poiiti- 

1 57*151 //'WTO/ ^ u P ruar accompanied Uie 

I n 1 * ^ our s heyday, but it is 

a surprising admission for 3 
1 country that many took to be 

the new Utopia. 

I, ii.i-,. — — — - ■ ■ » “It is somewhat difficult t«« 

deal with those who harmed 
retailing by an agreement with other*."' said the radio. “ especi- 

16 thOverse 
Import Fair 

“Partners for Progress” 


An event of the first importance 
for Europe’s import trade 

sizeable boost m West Germany. Committee not to accept the . . predicted, he sard, that discreet release 0 f the country’s retailing by an agreement with ofnerb, said theradio.“especr- 

The second aspect of the plan f’*" *L J !*!*” 5 ’?he results will be unfavour- longest-serving political priso- , b J c ?, , J15J m SL,2S5 chl «,u Cr I B ]!. na L and 

subsidies to industry, employ, mjtts time - munist governments 

was a proposal that that there trill be no firm pro- ™ ^r thc We^ European ne7' He is 3^ 'SSdlTS Fnods for ' «!” in J ? 7 f h This . . When the depen. 

guvemments should agree to pnsal ** f,ir tbe fln J l,ce chemical industry, particutariv university lecturer who, in 1966. a f r .^i5 en [. eNplre ® a ,b<s end J h , J? of . th ? ''Stints ask rm ihej 

abandon any measures (state mmisters to consider in a fort- lvhen i{ 1S re aiised that Com- was sentenced to 20 years in JL!.® 78 L *! “ eftls tb . af * lt sear ,s 1 c J' ,,n, . J,ai and niurdereiv 

subsidies to imluftry. employ. munist governments can price i ad for concealing a packet of ^ n ^ m tsL h, 7 al wiih^ihE^T’— ’-h a ^ rirda,1c f 

ment protection measures, and this makes the outlook for sue- t ^ e j r p r0 ducts at anv level to ex Plo«ves io his rooms. With Edw ? rds - T'J'. 0 °f his ^ llh the law we should punish 

so on) which they had adopted c ' ’? at t the Summit meeting earn muc h. ne eded foreign ex- the mioimum of publicity. Con- J fl ™[ 31 J ,np Fare s<imp Al thnse . wb: ' havc 
is nart of a counter-cyclical mnre clonmy 1 ? 3 ma tier for ghange.’* radie was whisked out of SaJis- 2P d , L ^ ,s * a,r Grant and groused the people s jndignatioii. 

aoticy In contrast tn the first conjecture: while the tonnan Ironically. Malpas who bur? ^ ** now enjoying— after J? avld Webster are already on but not al1 uf them. Thai is 

Eo-rt of the plan, this aspect ftovernment may we! i be hold- delivered \ he add JL 12 years in a cell— the open the b n ard and have a 29.5 per ^cause. if we were to punish 

w-aT presented in general rather lts hand until then the conference— was at that s P aceB of Canada. He has been sTa ^ , ln ,h e company— «U of them in accordance with 

than specific terms. Allowance absence rf MW™ fwm which al Jf at taken on the staff of Brooks an °* lwn to increase this the law and the general rules. 

Si n made moreover, tor to work will not make concerted P 1 . : s lin University. Ontario. to 38.2 per cent. there would be too many 

SU5*-~5- and for 2K — The ita he u heM hv a new 

help to infant and uncompetitive ^“ t T s that t h 0 secretariat company’s methanol technology Gulliver ’s mpn rTTn h A w nf ^ hlch ' 

new industries. Vtoh r n oropnsi n«* that the t0 the USSR - n was admittedly ".u ? meR i nd W , ebsTer are diree- C ljmmA H lin 

C^emment-^ eSSuito af£ TCirfi firet venture into com pen- “J** close associate of They have had a long aUmme ° U P 

Trade-off the further tax cuts^ pushed nation trading, but it means the i'SUiSSf’? F 1116 relatI ™’ sh,p Wlt h Gulliver and The current meeting of OECD 

,, Reem t n the ou t. through bv the Opposition and company will become respon- *® l ^ n “ t h e are d,recf T nrs nf _ h,s master economic ministers in. Paris is 

.. Tt “ a L^l 25L?i ™ not £ ffS- S nZ sible for finding space in bard- 2S veh'cle' for_ Gultiver to company. James Gulliver Assn- not having much success - in 

August 30 to September 3 , 187ft Is the time 
when producers and exporters from Africa, 
Asia and America gather in Berlin to 
establish profitable business contacts with 
European importers at this attractive special 

Europe’s only fair of its kind for overseas 
' products embodies ail the advantages of a 
concentrated and attractively priced range 
of goods, with the accent on textiles, foot- 
wear and leather goods, furniture, carpets, 
handicrafts, foodstuffs and gourmet items." 
technical equipment and semi-products. 
European importers who are looking tor new 
products suppliers to freshen up 
^ct more customers will 
Fafra tonga of offers which 
year 8 wt * 0r morG vad ® d from year to 

Come to Berlin! 

Get in on this source of fresh new contacts! 

Expand your range of goods with products 
from overseas. Taka advantage of all the 
chances frrat Europe's leading Trade. Fair tor 

lnd S!f t Qf “ * 8 Overseas import 
rar Tarttwrs for Progress" - can offer you. 

In 197ft more than ever before. 

It may 

■^That this proposal was not not yet offset — must follow sioie tur finding space in oara- 10 nai ■ ng success ,n 

5,dM *5?.* in la he ■ rejected by rather than take the lead in any bit western, markets for much f - t ^iino Pe ^h d raturn to c,at ® s - Tb e ^ alsn d ^ re< ^ J 01 7 agreeing on a joint recovery ~ “™" '»•*“** wv ^ 

^^^*5*22 so SSSlUeJS the methanol the Russians £2 « l 5£f» « “d °f this J P^ramme. Hardly surprising. 

Siv-framed as to be of litUc pur nuw seems to have turned wlU ship to Europe to pay fer • - 38 has SS J? e raain CTi r , 1 = 

Berlin, ,n197a - onw 

August 30 -September 3, 1978 

toosclv-f ranted 05 to oe or niuc put now seems »» nave turnea 

Pf? 1 ,” , ’S- 6 iSJST Kad K P w=s scarcely . dcsl to ££.or“„f V** 

indeed, th ® * ifl - ni j nd< t, p , U ght under adequate control, please the hardline principles of fodder member 1 “dl | dward f7- res P ecti vely Positive Adjust- 

^! ne Snnmenl of protective The Sa-ertointy reflected in the the prospective boss. But Malpas ° £ Spar Wh0le - ^ T meot Policies ’ Concerted Re- 

The aba ” d ^.^j f in principle klcsi CBI Industrial survey thinks tiiey will be able tu live ^ and retad ™ de h 7 n d "" e n ° f Culliveris covery Action Programme, and 

mc ?! U ^u' 5^ in” fact, m calvu- must be set against the fact together. “Ralph has a more GntiTvpr 5^1 1X LJ!!L! Rea, «ticaUy Optimistic Tar- 

resjgned a 5 a director m Fine in « fnr Avon miles comes fmra heads of discussion. These are 

rare to become mow-hnof hoftb^rc Cmc. dab /-n , r. • nnn. 

5 =. «- £^sijs?jss: r h “;* L ^ ™ ^ nSr^jrsL ****■ 

,a,ed .„“cMn.rie?™ie iic^ny ri..ns notably taler ttao the to „te .nto .ccoon, supply end ' i 5 5>n * 

tive to counmej demand for particular products.” /iWratono ^ te ! H" „■ 

r ITOni tanng an intereBi in food Gulliver, mindful of hi* 

EWiiOll^n Grounds Bartln . . 

DeutscWandhaHe/lce Palace Berlin ’ ' ’ tSSwaaffiSS 1 
Contact atfdrsss: WrattKJuriM MarfcMlns Swvfeas Ltd. 

Crown House Menton Surrey SM4. SEB.TeJ.: 01-540 not.'Ealex: 926729 

151 AMK Berlin 


■tor Exhiations. Fairs and CPrwmgsttL LM. 

and Japan which are anxious to EEC average. . 

Observer \ 

^Vable W 


TU ^# r t y , 


Financial Times \Vednesdav jjay 32 iqt’s 


Wednesday. May 31, 1978 

• 21 


So far, Mr. Junius Jayewardene’s year-old government has been 
unsuccessful in fulfilling all its election promises, notably its declared intention to reduce 
unemployment. But investment projects are being implemented, and although some of the government’s 
recent measures may appear restrictive, there is evidence Of growth and development 

Sri Lanka offere 

unique opportunity 

Sri Lanka offers the most alluring terms to would-be investors and entrepreneurs. 
Here is a wealth of raw material. Here is a skilled and highly adaptable workforce, 
which is in high demand all over the world. Here is a central and completely 
autonomous authority which facilitates ease of operation. Here are maximum fax benefits. 
Besides, Sri Lanka is strategically located, with the pleasantest climate and environment, 
with international hotels and sophisticated global communication facilities. 

Make maximum use of such / advantageous terms. Invest in Sri Lanka. 

Adaptable Workforce 

A reserve of over a million 
educated, intelligent., skilled and highly 
adaptable young persons are available tor 
employment at a comparatively low 
wage structure. The services of profess- 
ionally qualified English - speaking engineers, 
accountants and management personnel 
are also available.The skills and adaptability 
of the Sri Lankan workforce are such that 
they are now being sought after in all parts 
of the world. 

Autonomous Authority 
Directly Under Executive President 

An autonomous statutory authority 
known as the Greater Colombo Economic 
Commission has been established ana 
is placed under the direct supervision or 
Sri Lanka's Executive President. The 
Commission is vested with all powers 
required to approve and facilitate toreian 
investments, thus eliminatingjed tape and 
lengthy procedures The commission 
has direct jurisdiction over all enterprises 
located within the area set apart as Invest- 
ment ftomotion Zones. 


Maximum Security 

Investment guarantee agreements 
have already been signed with the United 
States of America, Federal Republic of 
Germany and are being negotiated with 
the Unitea Kingdom. Several more will 
follow with other countries. 

Tax Benefits 

' A tax holiday, averaging 5 years for 
investments and foreign personnel attached 
jo those projects, has been declared. 
Non-resident shareholders" dividends will be 
free of control and additional taxation. No 
fax on transfer of capital, returns and 
proceeds of liquidation. After the 5 year 
tax - holiday 2 1 tax on sales outside Sri lanka, 

5 7. tax on sales in Sri ianka 107 tax on royalty 
ad technical service payments. 

In addition Double Tax Relief for . 
investors has been negotiated with a number 
of countries. 

Off-shore Bonking 

local general bankhg and off-shore 
banking facilities are authorised for foreign 


banks on a case by case basis. In addtion 
secret numbered-bank accounts will also 
be permitted. 

Well Developed Infrastructure 

All facilities required for smooth 
operation have been assured; for instance in 
telecommunication, transport and freight 
services Eleven international airlines operate 
through Colombo. Research and manaai 
ment servicesare available. International 
hotels in Colombo guarantee excellent 
accommodation. Recreation could be unli- 
mited as Sri Lanka can boast of some of : 
the worlds most beautiful beaches, golf 
links, ancient historic cities, mountain resorts 
and nature reserves. 

To add to all this, you are in good 
company. Several international firms are 
already in operation in Colombo. Some of ., 
them are: Bata, British American Tobacco, - 
Danto, Glaxo, Hoechst * GltohJ BMJC I, 
Marubeni,Metal Box(SingaporeiMrtsubishi,- 
Mitsui, Noritake, Pfizer, Philips, Prima,Shell, 
Sony ,Teijin.Unilever, Untan Carbide. 

■ The triple-hooded cobra of ancient 
Sri Lankan mythology is traditionally 
believed to be the guardian of the. 
natural wealth of the land and signifies 
protection foryour investment 

Greater Colombo 
iconemic Commission 

14, Sir Baron Jayatilaka Mawatha, ■ 

P.O Box 1768 Colombo 1, Sri Lanka.' 

Grant* &E 614 

' L 

■ Financial Times Wednesday May 31 1978 





Aiming for stability 



admittedly worked nut and 




, A tn Ae Mel gt Finance. Mr. .Gaminl UNP attempts to wrest control 
I SMALL ISLE though It may be, this stamp. An admittedly worked out and °ui! 0 ‘tit e^Jconomv. P Vhe Dissanayake at Irrigation and of student ^anisatmiw from 

Sri Lanka Jikes its politicians patrician figure from a long into the medium-term develop* open up * Mr. Lalith Athulathmudali at the Left. The G " vc ™® e ” * 

10 deal in large promises. Mr. established Slohala Buddhist ment plan now being worked two-tier e f chan “* " d Trade, are voung. bright and response has been to send fte 
Junius Jayewardene has not family, he has a quiet, -informal ouL The accelerated Mahaweli ^ lsh ^ enthusiastic, ‘but inexperienced students home in the briirf 

been a disappointment. In the manner and is readily available Project will now involve the rupee ° liberalised in their departments. that angry Parents will Wh 

elections last July, he an- to his colleagues though he has construction of four major controls have b loeraus m snit*. of the decline in tea force their chlldr ^ hack and 

nounced he would end unem- a liking for. the ceremonial of reservoirs (instead of 12) and * “S? kept «„? ^h£r Vrnduction fonow- force them to take their studies 

ployment, bring down the cost presidential power, His belief the subsidiary feeder canals. At spare parts wh h ^ PJ and rubber P Q . ? iation- more seriously. None the less, 

ot living, uphold the socialist that administrations in Sri a cost of Rsilbn it wtU still working well neiow student unrest remains a major 

tenets of the country’s munifi- Lanka have lacked the authority absorb a fifth of public invest- measures had the nnSion would never alfow a long terra problem while the 

cent welfare state, and estab- to handle intractable problems ment over the period and hope- "U these measures opinion wouia . number of jobless Is so lai^e. 

Sh* a free M.W Idd. « ^elop-ent u .-A. beld fully create «£rt ioba dune, , 3SS MEETS 5.7 Jos. immediate and 

cent welfare state, and 

lish a free trade zone which of development is a' tong held fully create 400.000 jobs during - which last year “ favoure the retention of The most 

would repeat the capiu list one. The dang ere He in some the peak of construction. _ The re nfF.wh a .nnm arr » «riMU ehi 

Proposals from likely collaborators for suitable ventures 
especially in the “ FREE TRADE ZONE " are invited. 

Our own industrial complex offering adequate built up space 
for plant and machinery now being completed, will be available 
for investors. 

would repeat the cap ta List one. me dangers tie in some the peak or construction. mere ■ challenge 10 Mr 

35S^ Hong Kons and £■& 

Voters, weary of the lack of VuJh^d^rivin^ma^t ^M^ha^elL emended* *iund facility pro- stol^the^rivaie sector is so minority living in the north and 

jobs and rising prices of Mrs/ ^ power to fi raSt of iJS In evlSu-S?^ ven- gramme. The IMF had been ansi<ms t0 see it removed. east nf Ihe country score* a 

“'2.“' bail for serious offences and ture out of which the Govern- wanting i s more radical cutback The Government . has been m , a j° r success In ihc dertton 



Tr). phone: 24203 -OS Trim 1125 

Cable) ** SR I KRISHNA '* 

Sirima Bandaranaike's seven- h ■. . 
year-old left wins coalition, res- J°r 
ponded hv giving Mr. Jayewar. “* 

dene-. United MaUonal Party m inimum sentence,. 

dene-. United ifauonal ‘party ™ S „‘: S P“ liu “ 1 1 nlileage' to 

(UKP) the largest majority in I!!2^ ul l?“5- ularlty of 

E? |S2?52?E! terrorist organisations which . . r m tT 

cutline mission arrives fn Sri Lanka, j^rikes and trying to remove fTUU?J— won ia «ra« in 
But the stand-by cleared the ^ control of political leaders Parliament, making it the 

remove fTULFl — won 

way for a much larger volume ™ r mbn £ it hall to largest opposition party in 


SINCE 1835 

George Steuarl & Company 

arousea. opposition groups. infrastructure due to oe reaay i mpac *t of the measures has been . . Nonetheless, there August by the worst communal 

Behind this electoral extrava- Mr. Jayewardene sees his ® ar [ y ? ext y ear - declaring an unpalatable Increase in . - , labour agitation riots between the Tamils and 

ganza, Mr. Jayewardene is an second task as creating suffi- ® ne w ° ul £ be °P en _ 10 prices with inflation running at ^ bgen espected __ the dominant Sinhalese popula- 

experienced and serious politi- cient jobs to render unnessary robber barons Mr. Jayewar- about 30 per cent on an annual h ^ cause of continuing tion that the country had seen 
cian. and at over 70. an elder much of the country’s exten- Jene now takes the more realm- basis. The goverment hopes to memories of the fa ii u j eg 0 £ Mrs. for years, 

statesman who has set himself sive welfare programme which nc J! ew ° f saying that he wants bring this down rapidly to 10 j e £ t w in« foa li- Siure then, a terrorist organ- 

two main tasks. The first is to the economy cln no longer » dicoonzue companies which per cent Ba ndaramuke* ie« wing coau ^ ca]led fte Liberalion 

end the instability in govern- support. Unemployment, at a f^e out for a quick buck and Even with such a large elec- • r _.„ rnmpnT ,, a i so Tigers of Tamil Elam has 
ment by which he came to fifth of the labour force, is then run away. torai majority, there are limits The Government » * lso en f erged and c f a « me d respon- 

power but which has made it concentrated in the age group At the same time as moving as to how far the President can 0 , , . ‘ sibil itv for 11 murders including 

politically impossible since of 17 to 31 with a large pro- forward on these larger push. He is constrained by a Universities and schools have offirere The Prwi- 

Independenee for any govern- portion of secondary school schemes, which are unlikely to bureaucracy demoralised and no been closed for * mmme ot munth moved police 

r c r.e innaar tn hand no mamr weeks this vear. after clashes aent 1,115 n, ” n > M " u 

ment to 

“'oneTf his Brst Ml on com- mi'n.nnr^dua'es Sly wZlTiSZ “wEEuEfiZ SnKonnle ?oUawe°r^’Sbly inspired "by onr.hjo 

ing to power was to use his drawn to Marxism, who were He also greatly increased the 

two-thirds majority in the behind the 1971 insurrection . powers of the courts to hold 

unpopular graduates. 

show real returns in terms of longer used to handling major weeks this year, after clashes 

between 'Marxists and UNP ani * army reinforcements to the 







Assembly to revise the Consti- which required the assistance 
tulion so as to enable him to of foreign troops to put down, 
step down as Prime Minister During the elections and 
and become the nations first immediately after, the President 
Executive President. . In this ta ! ked grandiosely of major 
; role he is both head of state Projects that would Bring 
and of government, able to .unemployment down by leaps 
dissolve Parliament but not to a '" d bounds— the acceleration 
' be dismissed by it He has thus , Mahaweli. Irrigation 

set aside the Westminster Scheme ■ from 30 years to six, 
tradition of parliamentary th * Greater Colombo Develop- 
democracy with which »«nt n«n the ctwBon of th. 
Lanka ha, lived since Indepen- . V*®* z0 ”? JS?lS! 

dcnce. and replaced it with a “1 * 

presidential system wh0M lousing programme. The UNP 

Return to 


suspects and imprison those con- 
victed on the grounds that the 
police were demoralised at 
being unable to pin down the 
guilty. Behind these moves lies 
the fear of a fresh outbreak nf 
communal violence far more 
serious than in August. 

Communal tensions run high 
In the north, and nmong 
-Sinhalese in the south there are 
ominous signs of a blood lust. 
The Government feels it has 
gone far to answer Tamil 

„ BU done little homework on SRI LANKA sheds economic of the labour force. GDP in the up the issue, as well as the grievances over discrimination 

inspiration is clearly drawn suc ^ $c j, pmes out 0 [ 0 ffi CCi and philosophies almost as easily as J970s has averaged 3 per cent financing of the new develop- in education and jobs. But the 

from Gaullist France. By f 0un d that Mrs. Bandaranaikes’ its s,beds governments.. In the a year as compared with a still- merit plan that carries the Si nhala population is not going 

further bringing in propor- reg i me was we ]j behind in lat * * 96 0s the United National modest 4.4 per cent in the 1980s. country up to the end of 1982. tn permit the devolution of 

tional representation, he has formulating development pro- Party ( UNP) Government put In part this record of stagnant The details are still being power that the Tamils want— 
also made it extremely unlikely posaIs The accelerated its weight behind the expansion growth has been the result of worked out. and Mr. Jayewardene as a tradf- 

that any new government will M ahawe ii Project alone, as of the private sector and the de- the high level of welfare pay- p,,m,v w nr.Va^ enrfnr in. tianalist Sinhala Buddhist Is not 

Tf ire thuikiiu: nf InveninK In Sri Linki. 
Indudmii *hc pronased ' Free Trade Zone.* 
plea*? feel free to write direct w the COaimun. 
Mr. T. A. May. OBE. 45, Queen Street. 
VO In 15L Colombo X. SH Lanka. 

Telex number— 1CBT Calotnbo. Ansu-ertuck 
STEIART Colombo. Cablea— STCU ART, 
Colombo. Telephone number— M41L 

that any new government will MahaW eli Project alone, as of the private sector and the de- the high level of welfare pay- and pr j v - ate sector in- tionalist Sinhala Buddhist is not 

have the majority to reverse or sgi na iiy conceived by the velopment of import substitu- ments which absorbed oyer a vestment over the period has likely to offer it; His own pro- 

inis change. .President, would have absorbed .tion industries. : This was re- third of Government revenues bebn tentatively set at Rs 80bh posal. however, to allow the 

It is easy to characterise this the Government's total capital versed, in 1970 when Mrs. last year. But Mrs. Bandara'- at current; prices. With little Tamils -their d Mr** district 

measure as a slide towards budget over the next, five years. Bandaranaike’s left-wing coali- naike’s clumsily handled prospect of a . substantial • ministers, does ' rtot- begih to 

dictatorship— and the Presi- These plans have now been tion took office on a programme nationalisation and land reform increase In domestic taxes, meet their political asptrationa. 

dent's opponents have been brought -down to -much more of nationalisation and redistri- programme also resulted in which are now largelv drawn The deadlock presage* " an 

quick to do so. But Mr. manageable proportions, though button of wealth. declining tea and rubber pro- from export duties, this would explosive situation ' Vrhlch the 

Jayewardene himself is not of the details have still to be fully Under President Jayewardene duction— the island’s two key requ ire the real value ot President is the firsf person to 

— — - there has been a return towards export commodities and . flat subsidies to he reduced by about admit, could sabotage his de- 

a more open,, market oriented industrial output.. Currency two-thirds from their present velopment plans. 

economy. But the real- innova- and import controls encouraged level by 19S2. ■ v xt 

tion of his administration is a flourishing black market while eoNTHUum om-. • . JLlaVld HoUSegO 

have the majority to reverse originally conceived by the velopment of import substitu- ments which absorbed oyer a vestment over the period has likely to o 
this change. .President, would have absorbed tion industries. This was re- third of Government revenues been tentatively set at Rs 80bh posal. hm 

It is easy to characterise this the Government's total capital versed, in 1970 when Mrs. last year. But Mrs. Bandara'- at current prices. With littfe Tamils -t 

Sri Lanka Soon To Be 
in Urea Fertilizer 

that it is the first in two decades depriving industry of spare 
to make a serious attemp to parts and raw' materials, which 
cut back on the welfare pro- reduced many plants to operat- 
gramme, which the economy can ing at only 40-50 per cent of 
no longer support, by trying to capacity, 
replace subsidies with jobs. He The new Government has 
has yet to spell out in detail been cautious in going about its 
how he will achieve the neces- reforms. After taking office in 
sary increases in investment July Mr. Ronnie de Mel, the 
and output. But the initial raea- Finance Minister, allowed a 
sures of his regime are a step token depreciation of the rupee, 
in the right direction. Among the more blatantly 


David Housego 

Asia Correspondent 

Supporr has come from the populist acts of Mrs. Bandara- 
BtF which indeed prompted naike's administration had been 

^ t * ie programme — and a bid to win pre-election popu- 1 
which last year provided a larily by a 20 per cent revalua- 

i stand-by credit of $110m. The tion designed to cheapen im- 
IMF is prepared to allow fur- ports. 

ther drawings under the three 



' facility pro- rupee was .followed in Mr. de ! 

vided that after further consul- Mel’s November budget by a j 

IlSfthJ r«. Uly lt iS . c0 " vinc ? d long overdue abolition of 'the 
^ two tier «chinge rate-a pre- 

aLv d fmm n «,h«wL 0f re i°« urces mium rate had "been available I 
r^ ay «Ir?^lJ S * Ub l 1 -i es - B . nd tr ' !‘? s " t0 tourists and on certain items I 

far njvmint, >uui ia« auu UU UtLLain ueillS 

lector^ SSxtmi. Public of trade. The newly unified; 

^ c- ■ ? on . or was allowed to float at an 

n , t ; nnr * l_ . ■ - _ r- . T , "ilVWCU LU dl Oil 

nations in the Aid to Sn Lanka initial naritv of Tts ifi tn the : 

f wSn^ - £nd S bv** ,e - n?e<1 d0Uar ’ I?mp, y in e an effective 50 
their oied-es rajiln S per cent devaluation. This was 

« rom p anie d by a relaxation of 

Qinnirv , irl toon,, - uj a uriwatioo ui 

to S3G0m this 19, * import controls and foreign 

cial baSs whirh L^ 01 ”^'; exchange regulations, 
cial banks, which have shied budget also made a, 

s ta rt on phasing out SieJ 

for vp^rt n po : ~ — Sian on pnasing out suosiaies 

funds in by restricting the rice ration to 

heino I.,™ ^- ut ?. re households with incomes of 

hpino tnid ih,t ,h-.T . 7 . nousenoias wuu -incomes ai 

I S L l ! re for fie ^ 300 a month or less-about 
Jhe flow nF nffiS b f rau j e ,. of half the population. Wheat 

cause thp Fnmivif « 1 1 ^ ^ P rices have 5 ' nce been aJlowed 
Ferres a h rp exchan « e re " to rise as well. But to offset 

M s t a ™; , * h : . , this-and to underscore the 

orohlem “ic fVSl 8 S ??L edlate t0 incomes based on wages 
S ^ ride oat the un- no t subsidies — salaries were 




Bust nets [and Trade' inquiries are cordially Invited and 
will receive prompt attention 

SINCE 1854 

Helping a country gain self-sufficiency 
in urea fertilizer takes experience in 
total project management. 

The State Fertilizer Manufacturing 
Corporation (S.FM.C.)of Sri Lanka 
has assigned responsibility for total 
project management of its large fer- 
tilizer complex being built near Co- 
lombo to Kellogg International Cor- 
poration. Other Pullman Kellogg 
companies have responsibility for 
engineering, procurement and con- 

struction of the ammonia/urea proc- 
ess units in the complex. 

Upon completion in 1979, the facility 
will make Sri Lanka self-sufficient in 
urea fertilizer, with a production of 
940 metric tons 

We welcome your invitation to dis- 
cuss your plans and review our 
qualifications for undertaking com- 
plete project management of large 
process plant projects. ..anywhere 
in the world. 

, V further rises in raised by 25 per cent. A Rs 50 
j ,vin S ®S his initial a month payment was also intro- 

1 21!? °? eQ t il j g “j? .J 1 * 6 duced for the unemployed but 
economy begin to take effect. sn far thi . ha . nnl hf , nn fnl1w 

‘ ; 80 far this has been fully 

f fo , r implemented, 

unpalatable decisions his task T „ . 


| has undoubtedly been eased by * n impaCt 

the dismal narfnrma nf m,. ftas not ^ yet been great. 

the dismal performance of the L oee “ grca i’ 

economy in recent years. On l 1 ?- 

the yardsticks of literacy, health ^ r d !5f “counted to Rs 3.5bn 
and nutrition, Sri Lanka has Government 

I scored high among developing - e / r - This ‘s 

; nations, but unemployment has * e - nt S ,'? f® 7 f ent of 

climbed to t^m 20 per cent n? P ° r mar S‘ nall y Ies S than the 
— ■■ « ■. -■■■ ■ * ■ , 9-4 per rent recorded in 1977 

after adjustments for the 

WMttaH Bouitead Limited 
Botanquet & Skrine Limited 
Whrtmines £ Gem Export! Limited 
WhittaU BouitMd (Travel) Limited 
Industrial Managing Agencies Limited 


Area 25,332 sq miles 

Population 34.3m 

Rs 26bn 

an „ , H11 . , . , , »■«. Vauxh ? H Street, Colombo 2. Sri Lankin 

alter adjustments for the ^ 

change in the value of the Telephone; 2? 161. (17 lines) 

rupee. The IMP had pressed Cihie: • WHITTALL' 

for a far more radical pro- Telex: ‘1104 BOSWIT COLOMBO 

gramme ibat would have made . 

available about Rs 3bn from 

this year’s subsidy programme l - L * - * -- '“SSS 

for a national development ‘ — 1 JSSSnffT— ^ 


aod.H 3 ter cent to 96 ter (Incorporated" In Sri' Lanka). 

still to be worked out are For all advice concerning the Free Trade 

S*t h SS g i« n th “k 1 -a T the Zone deluding financing and initiating 

granine This SS? poiS 5 r °-f hi 2 nd hou se facilities 

cai decision far the Government. :■ available for exporters from the UJC 

.It would ultimately like welfare Contact: 

most in need. An IMF minion 01405-5818 (IQNDOH) or 010 941-24579 (COLOMBO! 

to Sri Lanka In July will take — — ' V” ■” 

jOR Pullman Kellogg Limited £ 

The Pullman Kellogg Suflding, 
Wembley, Middlesex 
HA90EE, England 

Per capita Rs 1,825 

Trade (1976) ” 

Imports ~ Rs4^bn 
Exp orts RsS^hn 

" imports from UK IlfjSm 
Exports to UK £35.4m 
Trade (1977) 

Imports from UX~ £27jm 
Exports to UK £59.8m 

Currency: Rupee £l = Rs28.6 




(Incorporated ^in Sri' Lanka). 

For all advice concerning the Free Trade 
Zone including financing and. initiating 
projects and confirming house facilities 
available for exporters from the'UiC 

'■ * ' 4 



,'s. 1 


financial Times Wednesday Bay 3l 19 78" 



Awkward balance The Notional Shipping Line of Sri Lanka 

in politics 


l' : * , * 

: i-L 5 ' 

Lankn^jomZ r* ^ a ? d u ttie det**Wng of the power defeat on a combination of high lose their deposit 

ment JEThi of ’, he «"* , Prices, unemployment and the The danger in this, as Mr. 

a?,w Ut M ° r * dubiously Mr. Jay*, unpopularity of its MPs. who Keuneman is quick to point out 

hee^a swin- of\ h h/nr«nn^^ 1R «, “!?? 1,s,ng lhp after seven years in power had is of driving the Left under- 

nf iact vai', the proportions l NPS Two-third* majority to become remote from the elec- ground towards "civil war.". 
*f 8 *u * hlch virtually incorporate in the constitution torate. To that should be added Such a remark is intended to 
mtLated the former partners what would mherwise be the nepotism with which Mrs. raise echoes of the 1971 insur- 
' ndarana,ke ? ’eft-wing regarded as normal legislation. Ban daraxia ike s regime was rection by Marxist youth. The 
'<c 3 tini 0 . X | 4 PI ga .\t ■ ***** ^ Tnited Thus recent bills outlawing the charged. A more rural based Government has now let out of 
-■National Party <UNPi its over- terrorist organisation. the party than the UNP. it is cur- prison the leader of that move- 
wneimmg majority. The main "Liberation Tigers of Tamil rentiy going through a process ment, Mr. Rohan Wijeweera, 
opposition parly to emerge was Elam." depriving magistrates or of "deniocratisation" to remove and his followers. His Jaihika 
tie Tamil United Liberation the power to gram hail in cases its image of being dominated Vimukthi Peramune (JVP) 
^ ront which cam- of serious offences and obliging by a family hierarchy. Until party remains in numbers the 

paigned on thp platform of a them to impose pertain mini- there is a by-election in a rural strongest of the young Marxist 
separate stale for the minority mum sentences for those con- area, however, there is no real groups, appealing mainly to high 
Tamil community. By any yard- victed. have been presented as way of testing whether there school students in the 17-21 age 
stick this unrepresentative constitutional measures. Mr. has been any revival in its band. But he seems more pre- 
nalance of power m the Jayawardene also talks — electoral fortunes. But it is occupied with discrediting the 
Assembly is unhealthy. possibly loosely — nf including likely to be some time before established Left-wing parties 

Tn terms of seats the July commercial agreements made its reputation of having let the than attacking the Government. 
Heel ion gave the UNP 140 the wilh ,he Free Trade 2one Com - econom - v run down and black His members say that their aim 
TULF 18 and Mrs Banda ra- missio11 as part oJ lhe constitu- marketeenng flourish begins to is not to overthrow the Govern- 
naike’s Sri Lanka Freedom lion- off - ment but “the system "—a tae- 

Party t-SLFP) nine, includin'* The UNP has its origins in Although Mrs. Bandarana ike's tical timing that suits Mr. 

her own and that of her -son the Senanavake family— which has been Showered with Jayewardene. Other Left-wing 

Anura. The UNP rhus secured with the Bandaranaike family accusatloI,s frora present youth movements. oF which 
more than the two-thirds has almost ruled Sri Lanka J»ovenuiient for abuse of 'power, there are about 25. are less 
majority needed to put through aliemately since independence. I,,* ^ arg tk *u 3ve n0t beer ! Rau . e " t an< L laI I ! t violence more 
constitutional changes. Mr Mr. -Tayewardene took over the p “rsu ed the same personal readily. At the back of any 
.Tayewardenn has used this leadership in 1973 after a split m In £“ Government s mind is the know- 

strength to introduce the revi- with Mr Dudley Senanayake !*™i . Mrs - . G ^" dh L Mr ,edge J bat 11 the 19*1 insurrection 

sions to the parhamenfarv and proceeded to w,den the 2?“- n e d ' V h l F,Mn ^ was stalfuUy organ ^d and that 
system, he ha, taS part - r ' s app * al th e in- "'"S*’ jn reSU ™ f ed “ old tbe ] t eaders f wer * given ? be 

advocated, to end what has Buenhal squirearchy and com- f* a J« » . ParIlament ^vantage of drawing the 

seemed endemic politick merciil interests with which it P * a J **»>'*&*• and > es . sons fro ™ Fadure b * 

P has been traditionally associated. Mrs - Band ™>^e has re- being confined together in 


„ . Kr _.,_|,, _ oro sponded uy issuing a writ prison. 

In February he took office as i paders intn T jf e Darlv 0 f afiainst him. A presidential As yet. however, the Left has 

le islands first executive J h k m i n ic»er^ in the nresent c ’ onimis s>on is currently taking not really recovered from the 

resident, rpsion inn hi* nnct ule L!“ u,,: *”*■**“ over her rocnrH in nrlminictrs. miiilinn i+ ranaivail in lha alan. 


re- being confined together 
writ prison. 

President, resigning his post as U1C over her record in adrainistra- mauling it received in the elec- 

Prime Minister and his seat in ' --hi* r t S.S tioa But as old personaf friends, lion.' It has concentrated its | 

(ho Aecamhk- «i* Dissanayake and Mr. Lalith u. .... .™i 

lhe Assembly. His new office 


Mr. activities on the universities 

• . 111 a uun unite Afhiilatlirnifrfflli in rharna n F */unuiuniiiiii\e auu i*u. atuimcs un luc umveiniui^ 

gives him the power to appoint ^“ finn ,„7 .r a Ha Jayewardene remain on good and on opposing the proposed 

ministers (including ministers JfS; 1 ”® “JL ^ de respec ‘ terras. curbs on the trade union power, 

,Q h hea f reor G ani s®d district w f^ ar justification the For the traditional Left the making surprisingly little mill- 

administrations which he in- ^ lth so ™ e ^"J at ^ 0Q ^ institutional changes are far *** 0U } 4 of the economic situa- 

tends to establish)- preside over ™ SLiSi J more serious. The Communist ti0 !V , Its “ a /. Da * raHies were 

« Dartv inc! udine more men more serious, me commumst — r . r 

the cabinet and dissolve the P profes" ionalquThficaS Moscow) and Trotskyist Lanka welUttendedbutwere certainly 
Assembly but not be dismissed J 10 pro,es:, ‘‘ ,nai quauncauons s Samain Partv fTqqpi not a demonstration of strength. 

Kv it. He U, freed fre m „■>,.« S“ ft™ 1* "S “ UK CjSS, i\Z £ *< «*• — *«-• « »<***■ 

he considered as an increasingly 
time-consuming chore for a 

assemblies It has followed the have i° n S be ® n major features . e mea “ nrae 11 is unaer- 

practice or in prX'essors .J " f the political landscapc-aod S?. 1 "? some soul searching to 
pracuce 01 ns preuete.sars in than th _ ir eliminate what Mr. Kueneman. 

clearing out its opponents from S refers t0 85 the Communists’! 

.*• bureaucracy, , hooch "°t V™* , "’ pl ' pi T h ' "Risht wing, opportunistic”! 

longer smelly accountable in .. . nr.iMH. M adrn.m^ation .s HousIne As the main opposition party.: 

the Assembly, ami ihc slants nf j ( nannna'lisition measures Minister, almost until the end. 

Parliament has correspond, only p" en "Vu" ".larmln^^ Mr Colvin de Silva, the LSSP ' *" d m 

roVc^n/lhat^e^l'Z JSi ?Z£2$ oi *"■ “ p f “ r *• 

difficult questions nf the possi- J" 0 d d B U ""th'o”sh me"u\Fs The strength of both parties aVn^.' way of fusing £ 

President * and * 'a ^Parliament ,wpuli ' ri,y h !f o^iously been i‘” m ii? e tr h adp u "'“ 1 h “°' h e v sentiments throughout the enun- 
rresmenr ana a lariiamenr den j ed s]nce the election, it has meDt - They have been hit by . .. 1 «,at the Govern- 

dnminated hy a majority not of won the on , r w by^Jections ** ban on political strikes and L, otwilJ not * tthe measure 

Jn^larn 3 maJ ° rity D ° l 0f «« the only two by^lections the ^ d ment lin not g^nt Se measure 

his own party. held so far — one admittedly m * h e Government attempts to Qf devo | ution tf,at it wants. It 

Rut to ensure continuity of the strongly middle-class area of remove union leadership from caU pht on an anvil 

Government Mr. Jayewardene Colombo West, which was also politicians. They could be its C nmmitment to non- 

has brought in proportional Mr. .Tayewardene's seat. perpetually excluded from and the pressures from 

representation. This means The constitutional changes are parliament by a system of pro- g0 j ncrea5 j n g| y militant Tamil 

that any future administration by no means totally unwelcome purtional representation as pro- routh movenien t to take a 

i> unlikely to have the two- to the SLFP — the stronghold P°f e ?« under which parties ; n „ g hp r 8 j Rnd- 

thirds majority to undo the of the Bandaranaikes and the gaining less than 8.5 per cent of TlaviA Unncium 

rhangea he has made. Further other main anchor is Sri Lanka's 1116 vote in an electoral district Lldvia nuusegu 

amendments to the constitution political system. If proportional 
air la be brought in to provide representation had been in force 

for the election of the next during the last election, the -f 

President, the holding of party would have picked up a r) y I r r\T 

referendum (Mr. .layewardoue 45-50 seats instead oF nine. It 1 a | 1 r - " II I | I I K r“ I 
mentions that one quf*stion has denounced the new powers 1 “ p' V^X X i.i.XWi. 
voters rnuld be a^ked would be of the President as potentially 

whether they would favour the dictatorial, but as yet is not ».i. 

postponement of eledionsi. the eommitied to removing them. CONTINUED FROM PREY10U5 PAGE 
listing of fundamenlal rights It blames the party's massive 

Open market 


Rely on 



been here in 5n Lank* for a hundred yrars and more, 
making machinery for che Planracion Industries and exporting 
ti far and wide. 

Our engineering expertise has since been diverted to other 
sectors of industry. This unrivalled experience, intimate 
knowledge of local conditions, unique skills and reliability 
of service is now available to the investors in tne Free Trade 
Zone and other areas. 



We are also a retail organisation for many reputed foreign, 
suppliers of Industrie equipment and heavy machinery. 





Reputable HOUSE of Exporters 



Other preliminary assump- to the peak achieved In 1976. 
lions behind the plan are an It makes no real provision for 
ambitious 5.5 per cent growth the four main projects on which 
in real GDP. a 20 per cent the Government is counting lo 
marginal savings ratio, an create new jobs — the 
annual 5 per cent increase in accelerated Maheweli project, 
price output, an inflation rate the free trade zone, the Greater 
of M per cent and foreign aid Colombo development plan and 
at least remaining constant in the housing programme. Specific 

real terms: 

allocations for these projects 

P'~" flZ OUr nK?U ' fCmenU &b ^ : UNIWALKG"' 

wmw Trio*; 12 I*-UNIWRI*« 

8ft I LANKA 

The magnitude of the task will only show up in this years 
before the Government is that budget. 

at Sri Lanka's historic ratio of At an estimated cost of 
employment to output, it would Rsllbn over the next five years, 
require a 7 per cent annual the Mahaweli will alone absorb 
growth rate to absorb new a third of public investment. At 
entrants to the labour force its height it should employ 
alone. One of the major con- 400,000 people. It is arguably 
straints facing it is the inherited not the most efficient way of 
lethargy of the bureaucracy. As creating jobs or raising agri- 
difficult to manage will be the cultural output. It is certainly 
halance of payments, where a no substitute for other measures 
continuing strong growth in of better water management 
exports is needed to finance and rural credit schemes that 
ihc imports required for invest- are needed to make more pro- 
mem. The Government expects ductive use of the land. But il 
a wider trade and current is a justifiable attempt to cap- 
account deficit but hopes to ture popular imagination, 
handle this through concession- The free trade zone has also 
arv lending. It is projecting a hdped to dramatise Sri Lanka 
sharp drop in the debt servicing at home and abroad. Its impact 
ratio from its present high level on employment and industrial 
of 22 j>er cenL output will not be as great as 

If businessmen have Mr. Jayewardene originally sug- 
welcomed the liberalisation of gested.. In manufacturing the 
imports this has not yet been major Increases should come 
transformed into mucb new from revitalising and expanding 
private sector investment Local existing industries, 
firms have several reasons for The temptations in this situa- 
holding off. Liberalisation is a tion to create produc- 
two-edged weapon which also five jobs, in the public and 
cuts deep into the margin of private seclur. There are ai ready- 
companies, which have enjoyed signs of this in the request to 
a long period nf tariff protection private industry to take on an 
for high cost production of often extra 10 per cent of staff — 
low-quality goods. The switch probably no hardship after 
into export manufacturing that recent retrenchments and the 
the government wants is a big mucb tougher labour laws the 
step. Government is seeking to 

They are also still intimidated enact. The new scheme of "job 
by the Business Acquisitions banks" for filling public sector 
Act — used by tie last Govern- vacancies initially through the 
ment as its main instrument for recommendation of candidates 
industrial takeovers. High by members of parliament has 
deposit rates mean that there yet to prove itself and smacks 
are attractive alternatives to in- 0 f the old system of political 
vestment. patronage. Nonetheless the Gov- 

This has thrown the weight eminent is trying harder than 
so far of generating new invest- my & its predecessors to tackle 
ment on to the Government Last tf, e ia] an ci*s most fundamental 
November’s budget inevitably problem o£ unemploy- 

prepared in haste, reflects exist- menti 

ing commitments and a margin r\ o 

to bring capital expenditure up XJ.Ja- 


Unimar Seetrsnsport Gmbh-, 

P.O. Box 10 62 26. 

Ferdinands trasie 33. 

2. Hamburg 1. 



Cory Brothers Shipping Ltd-, 

Europe House. 

World Trade Centra, 

London El 9AB. 



Neptune Agencies (Pte) Limited, 

Suite 2101. 

21st Floor. CPF. Building, 

79. Robinson Road, 



East Asia Shipping ( Hong Kong) Ltd., 

702. Loke Yew Building 10th Floor, 

50-52, Queen's Road. Centra). 



Mitsui OS.K. Lines Limited, 

3-3. 5-Chome, Akasaka, 


Tokyo. 107. 



National Shipping Corporation. 

N.S.C. Building. 

Moulvi Tamizuddin Khan Road, 

P.O. Box 5350, Karachi. 



China Ocean Shipping Co., 

6. Dong Chang An Street, 



Telephone: 30061 
Telex: 2162H6 

Telephone: 01-480 6321 
Telex: 885081 

Cable: GROUPSHIP. London El 

Telephone: 22241 1 1 
Telex: NEPAGENT RS 23271 

Telephone: 5-260071. 5-226844 
Telex: HX-74748 
Cable: EASTSHIP. Hong Kong 

Telephone: 584-51 1 1 
Telex: J 22266 


Telephone: 225931-39 
Telex: 833 & 733 

Telephone: 553424 
Telex: 22264 
Cable: COSCO 


6. Sir Baron jayacileke Mawatha 
Colombo 1 




f ON 

The lap 


Finding your way could'ba easier with a friend like 
the Bank of Ceylon to guide you. Friends can ba 
found but good friends are rare. In Sri Lanka the 
BANK OF CEYLON is your best friend. 

rr is well equipped to serve you. 

Over 600 correspondents - around thB world for your 

Over 500 branches in Sri Lanka 



We offer a full range of services. 







We maintain Curient # -Savings,,Fbced/Non- Resident 
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We are In the Investment promotion zone.s of 
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area and are better able to serve you. 


Asset*'- Dec. 31 

C**h&_ Short-: Term Funds 
Investment* - 

Contra A/tYs 
Premises & Equipment 
Total r - 

Lla bill lies Dec. 31 

Contra AC/ s 
Other Liabilities 



Ra. 499,828.000 

R*. 376,770,000 

R*. 2.180,742,000 
R*. 3.642.609,000 
R*. 69,543,000 

Rs. 6,759 392,000 



Rs. 4,500.000 

Rs- 57,000.000 

Re." 3.049,619.000 
R*. 3.642.509,000 
Rc. 5,764,000 

Rs. 6,759.392,000 



Re. 308.389,000 
Rs. 382.899,000 
Re." 1,546,228,000 
Rs. 2,414,869.000 
Rb. 62.306,000 
Rs. 4,704,691.000 



Rs. 4.500,000 
Rs.. 55.000.000 
Rs. 2,225,547.000 
Rs. 2,414,869.000 
Rs. 4.775,000 
Ra. 4.704,691.000 

Telephone: -23521 (CENTRAL OFFICE) 


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Telephone; 01-606 5597-9 

u . 

Financial Times 

Wednesday May 31 WS- 


business in 
Sri Lanka 
an indigenous 
bank very 

much on the 

The Tamil 'powder keg 

' ’ A . „„„ ta-rt of this solution is ajain that tt 
of obviously not happy. “ orove inflammatory- to 

[Sri Lanka has become the major dominateiy Hindu— was that the Tamil-speaking provinces ram- IiTrotionaf amendment com. n»«n. ■ ■; 

political problem of the Govern- Indian Tamil indentured labour where the Tigers are believed based on JJ. .J® ide flinds in a d despite their uwn from lh0 . ® 
men, of president Juniue » the tee estates was also to t* Uring among the tonal wmb» J5S SS “ « «“>“ ™"' fXTv.otnce^ 

Jayewardene. The size of the attacked for the first time, population. fmm EKEr avoided con- s L de I _ VI SSS?' 

Jayewardene. Tbe size 01 toe attacked for the first time, popmamra. e " fnm *7------ -- avoided con- •“« sav s it k 

ffinhJi? isitout J 1 -? labourers and Instigations* the flnq, J£ e £, ack JJJ£t 0 r be taken deJLing' the violence of the £ Jj» fo^the ronsttiutiwd 

skinned than Sinhalas, is about families are usually a third the name of which is short for ~ v j c *jms' there have been 11 Tigers * am^ndmpnis before it decides 

I Jm out of a population of over community, not having citizen- an organisation called the f^fcdudtiig seven ^ «in “*?*? farther 1 Sion *3 

13m, but is boosted by another ship as a rule and not accepted Tamil New Tigers Movement, “*}?£ ” f° f ’ ^ But the Government can „et on its further action, ado 

500.000 wh M the rndian Tamil ^ TamiIs by ^ Twill indicate that It is at present a P °^ .' t . some wtirfaction from he another 

community working as mden- speakers jn the nort h and ea5t . rather amateurish group with- There is no Indication yet of degree of cooperation being Tamil Elam Uberauon u^ani 

tuxed labour on the tea estates p out an ideology beyond inde- « foreign involvement as in the sbown by i nd ia in helping it satton, sajs it has onJj ttomk en 

is taken into account. * ■ oendence and the use of case of the North Korean assist- folate extremism. The Indian violence, in particular bank 

This community is now repre- OpUUOII violence. It was not hard to *«ce during the 1A72 student lies j ust 15 miles from robberies, in the 

seated by the Tamil United JT see why one Government offi- insurrection. Nor is there proof ^ northern part 0 f Sri Lanka give the new Government a 

Liberation Front, which won 18 . dal in Colombo described it ?/ . *** iaierailiond tonwurt and is b^yed to be a refuse chance. 

from the Tigers there are other ■ 
groups also prepared t0 Wl* 
sider violence. The youth Wing.-, 
of the TULF itself says it a 


seats in the election, a small dependent Tamil Elam is de- apparent | y confusingly, as link > although the Tigers are for ^ .j^_ ers after their The slow moving bicycles and 
number compared with the total * ,red and thought possible fc microscopic but serious.” Mid i0 admire- the Palestine .. The Indian authorities tractors among Ihe agrlculturel r 
- - ■ ' P Liberation Organisation and see 7“ «*iilhnratinn clots of the jungles of northern 

of 168 seats, but a figure which depends on to whom ■ one 91 . Liberation Organisation and see *5“ «i«aho ratine plots of the jungles of northern 

In fart makes it thenutin opposi- speaks^ Even within ^parlia- S2 a In their _ struggle ^ L Lanka, provide an unlike* 

m wattes 11 me mam opposi- : — . W(lll | d anenmnacs those a nn patrols. ■ 

Hon partj-. for the former Prime mentary party there is a l great ™ te wotdd encompass Uiose with the IRA . . S o far neither ;“, n fXt l 0 f their own hotbed of nationalist feeling. 
Minister, Mrs. Sirimavo Banda- range of opinion, with the where Tamil spi ?« ^y nor the TULF, which Perhaps mtadfu ^ their And e y en the Tamil youth, who 

A complete service in domestic 

81 international banking, through a 
net-work of 23 branches in Sri Lanka, 

# Corporate Lending, 

9 Project Financing. 

0 Correspondent Banking. 

0 Documentary Credits. 

0 Importation and Exportation facilities 
We open accounts in foreign currencies for 

Minister, Mrs. Sinmavo Sanaa- f* 11 ** 5 “ u ‘, at n re sent in the maioritv uiey nor m fivinc in the Ann even me iuuu t ««« 

ran a ike. and her Sri Lanka Free- leadership making a formal preaches non violence have Wm Tairuls ‘ ^ inS N ^ Sri share the unemployment, 

dom Party only won eight reals, acknowledgement of the: elec- ProJinS and W0Q an - v «uPP°rt from left-wing province of Tamri Naou, an among young Srt 

Under the leadership of Mr. **£"* b f. f <? re the Sri 'a**™ organisations. Lactam ot&cials JhV Lankan people, yet fully «rk 

AppapilJai Ami rthai ingam. noyr into poetical realities and de- “« “““g” era Provin « Mr - Rohana Wijeweera. the for- getting some ««■»» jjeny ^ ^ Tigers, admit that.: 

»ha nAini.i nt tv.o . nnn .L elarin® that there are several adJ scene eastern rrovu , chuiAnt imrfpr detained for me India as a base and source hmt-iiitv ha« declined as' 

the official leader of the opposi- claring that there are several min town is the old mer student leader detained for ing India as a base and source Jice bruta m y has declined as' 

tion, the TULF is performing levels of autonomy and self- °‘ d f six years from 1971 and now a of weapons and funds to the ^ of it have ^ 

Sri Lanka Nationals rasident ovaraeas. 

If you think we are the Bank for you, 
please contact us at: 

uon, tne iuw is penorming lCTt,a p nra i v a w anrhnrasR nf a4a iiuiu iuu — inose gumy ul il nave uveu 

three functions, leading debates determination, of which com- In term of left-wing politician, condemns Tigers. transferred. However, for the 

against new policies of Mr. P ,elc independence is only the viability it is a botil t* 1 ® aim the means of Another possible solution lime being the Sansohi Com- 

Jayewardene’s Government, highest. dubious proposition lacking all the Ti § cr terrorists. be ing hinted at is some sort mission into the riots of last 

looking after the interests of Politically active workers, the export crops of Sri Lanka- of devolution similar to that August is serving to remind and 

the Tamils during a period of both among the Tamil com- tea E ems and coconuts' T? nmmm/f proposed between England and inflame feelings, while police 

heightened communal tension, munity in Colombo and tbe j^^bers of pariiament of the AVcIUUVcU. Scotland. These discussions are morale remains low at their lack 

and storing for the implementa- main town of the Nortiiern Tamil UnitedLiberation FronL. T n trying to meet Tamil believed to be in a preliminary nf progress against the terror- 

ff" of _?® £r l nt ’ s ele 5 ti0 " plat - Province, Jaffna, are more however> say it ^ be self- demands the Government has stage and on an informal basis ists. President Jayewardene has 
form that there should be forthright in their demands. suffici ent in food and will be already removed standardise between Government ministers described the ,,8111181100 as 

independence for the Tamils, in and it is possibly because of ab i B to exnort rice chillies 7;^ 9 and tile TULF leadership. In a “ powder keg,' and it looks 

a country called Tamil Elam. this difference that a terrorist 0 £i 0 ns an^fish. Trinc^jalee! procedure by whiS^auSStw fact il ** not clear whether the like remaining so for several 

The desire for independence movement called the Tiger* has ^ ou]d be deyc i 0 ped into a com- SS Sed ltt SC wS "« of lie parliwnentaiy body months at least 

has been enhanced by the grown up in tbe past year, merP ial and intellectual centre P * , 7 !? is being allowed to involve . c - ^ 

increase in rnimminal tensinns ilarlioatM*! tn tdnnino indenen. T their racial proportion of the m,. •«tnnuilpdppd danver SlUlOD HCfldCFSOn 

. — meraal ana intellectual centre. *h»ir racial nrnnnrtinn nf the ,a 

increase m communal tensions, dedicated to vdmung indepen- whether Trincomalee or Jaffna ?!!„i.2Sr !S P „hic». thl itself - ®» acknowledged danger 

tensions which have been built dence bv violence. Desoite this HZZt tL zZSli aJZZZZl Population and which the 

16. Janadhipsthl Mawatha. 

P. O. Box 98, Colombo 1. Sri Lankai 

Telephone: 21885-8 

Telex: 1259 HATNABANX CBO 


tensions which have been built dence by violence. Despite this WO uld he the canital denends popu ,, / , ™. "i a , “ . 

up from the majority Sinhala organisation hitting Tnly at perSn Swhim SS t 

side partly through long- what it considers to be Tamil speaking thera \ A .^i rd c0 “ ti ? a ®? a J 

standing prejudice and dis- traitors and collaborators, it has j t - a ^j, a t s state am ®ndment f the report of which 
crimination, and partly through widespread passive support wop j d be n on aligned, being wiU be presented to Parliament 
anger at the audacity felt to among the Tamils, a support socialist and democratic. To the “ June j 13 expected to pro- 
be shown by the Tamils in not apparently based on fear. outsid e r it remains purely a P 0Se . °J ier measures to meet 

demanding a separate state. President Jayewardenes nationalist movement with an Tamil demands. These include 
On both sides there is fear Government has recently ideology which may swing equality in the use of language 

of an outbreak of racial rioting started a campaign to round up according to which foreign and educational and employ- 

even worse than that which the Tigers, variously estimated power may offer assistance. men * opportunities and the 
occurred last August when over in strength from between 20 Despite reports in the Press of appointment of district 
140 deaths were recorded. That and 30 to more than 200. Com- possible Libyan and Algerian ministers. The Government is 
started as a continuation of the 


The UK leaders in UK loaders 

political rivalry of the elections 
but quickly extended into plain 
communal strife. It was the 
Tamils living fn the southern 
Sinhala parts of Sri Lanka who 
fared worst Businesses and 
homes were attacked and burnt 

Trades unions 


n 1878 ... 

As supplied 10 the Sri Lanka Ministry Zu S3 

of Irrigation, Power and Highways. 22LT2? JJT'S 

.owe, '"S"—.- >msts rest0Kd u, e pewe , ip 

F. E. Weatherill Limited ' hc ” eantime several thousand 

t«, ■« Drtn< j Tamils were evacuated to 

Tewm.Roaa, . northern parts of the island by 

Welwyn Garden Cuy, Herts ^ and air to face several 

Tel : Welwyn Garden 201 41 . months in refugee camps before 

Telex: 24826. they could be persuaded to 

under threat 

Charles Pickering Hayifiy. from Jerwy. Chamal 

Islands, sat up businais In* Souikein saa poil of 
Cayion. Hu business acumen and, vision ensured a pro M able 
-iti't and a firm foundation lor the future. Today Hayleya ■ 
Group of Companies employs over 2000 persons and excaada 
Rs. 180' million in annual turnover. - ’ 4 '- 


they could be persuaded to 
return. According to Tamil • 

sources, many families Rave THE JAYEWARDENE Govern- promising to reorganise labour appointed by the employer and 

remained and only the male meat came to power last July relations. The disparate council, whose decision would 

members have returned south saying that the trade union elements of Sri Lanka's highly also be final. Strikes would not 

la act as breadwinners. movement was in chaos and developed trade union move- be allowed during the whole 

% : 

V wfei: 

Blessed bj? the son. 

The Sun,the eternal symbol of energy and the 
hrighr side of life is Upali Group's emblem and 

For centuries the people of Sri Lanka, bronzed 
by its warmth have looked upon the fiery star 
-■ *3 a sign of good omens and adorned their flags, 
and crests with its likeness. 

Upali Group's burnished sun shines not only 
in Sri Lanka but over many lands . . . Malaysia, 
Singapore; Thailand and Europe where their 
products are manufactured and Hong Kong, 
Japan, Australia, Ireland. USA . . -. where they 
arc marketed. 

It is the stamp of quality that is synonymous 
with the success of Upali Group's ventures. 

In countries far and near, in spheres as wide 
and varied as manufacture of confectioneries, 
radios, electronic equipment, motor cars, and 
cocoa processing, cocoa plantation management;, 
management services and distribution. 

That’s the sunshine story of Upali Group 
whose every product and service is blessed by 
.the sun. 


Head Office : 223. Bloemendhal Road. Colombo 13. Sri Lanka. 
P. O. Box 172 Teles 1198 Upali Colombo 

ment have since united to conciliation process, 
oppose a draft law on employ- The right to strike under the 
ment relations, and the proposed law would be res- 
Government has retreated with tricted in other ways too. All 
a declaration that its provisions strikes would require 21 days* 
will apply only to the public notice, and strikes in essential 
sector. Although the Govern- services would be prohibited, 
ment has the parliamentary Anyone helping to further an 
muscle to push new legislation illegal stoke would also be 
through, uncertainty continues guilty of an offence, 
to surround its specific plans.- j 0 b security, another benefit 
Tbe United National Party’s jealousy guarded by Sri Lanka’s 
original intentions were always trade union movement would 
rather vague. In its manifesto also be affected. At the moment 
the party said that “organisa- employers find it easy to bire| 
tiona of employees managing but almost impossible to fire 
their workplaces’*’ would be under the Industrial Disputes 
formed “without political Act and the labour tribunal 
affiliation.” There would also system. The 1971 Termination 
be regular elections and State of Employment of Workmen 
supervision of the use of funds fSpecial Provisions) Act has 
collected from paysheets. To a taken this still further, making 
left-oriented trade union move- it criminal to terminate employ- 
ment facing a new right-wing ment (save on obvious grounds 
Government it all looked like where a worker has committed 
a potential threat to its exist- a theft, for example) without 
ence and a usurpation of its .the consent of both the worker 
traditional powers.' and the department of labour. 

Tbe draft law repeals this 
T nhhvinor Act, and makes employment 

uuuujmg terminable at one month's 

Thus when union leaders notice on payment of fixed corn- 

thought that the four-man pensation without resort to the 

cabinet sub-committee drafting Industrial Disputes Act. Em- 
tbe law to embody the UNP*s ployers say they will think twice 
ideas might be planning to con- before firing workers because of 
fine the organisation of labour the sums involved, but there is 
to enterprises and even just little doubt that they welcome 
factories, they began lobbying tbe proposal. The unions natur- 
Govemment leaders, - other ally see it as wholly retrograde, 
trade union movements and T bey say it makes job security 
international bodies. Some illusory, especially by allowing 
* ordered token work stoppages arbitrary and capricious dis- 
in protest, and the Government missals, 
assured the unions they were Representatives of 13 of the 
not * threatened. In the event country's major unions joined 
the draft law, published as a together to reject the White 
White Paper for discussion by Paper completely on the 
the Government in January founds that it suppressed the 
was everything the unions had fundamental right to strike. 
fe * red - ’ deprived employees of tbe right 

Greatest resentment has to deal or bargain collectivelv 
focused on the proposal for with employers through their 
elected employees councils, trade unions and empowered an 
even though these are also to employer to get rid of anv era- 
be the means of fostering ployee without the employee 
worker participation. The haring any redress. But the 
unions see the council’s pre- unions gave no reasons Tor their 
scribed funtlon of representing rejection when they delivered 
workers and handling disputes their verdict to the Government 
as . an attempt to make the in early March. This would 
unions redundant— or, as the have opened the way to discus- 
union leaders themselves put if. sions on issues which they see 
to cause them to “wither away.” as n on-negotiable. 

Hie councils— oriented as in- A month later on April 6 
tended towards the plant or and only two months after the 
enterprise and elected by secret White Paper had been pub- 
ballot— would, for example, take lished. tbe Minister of Labour 
up grievances. A council’s announced is Parliament that 
decision that a grievance is not the Government had decided to 
well founded would be final, confine legislation based on the 
When it is well founded, and White Paper to employees in 
an attempt to obtain redress the State sector only* This 
| from an employer fails, the legislation, his statement said. 

% would go to a concilia- would make provision for the 

? tiotj commission oE people establishment of employee 

Ws at Hayleya art engaged in auch diverse fields of activity 
aa. processing and export of Coir Fibra and Yarn and 
pradvers of Corr'Fibre such as Brushes. Brooms and Mattingi 
distillation and exports of Essential and Spies Oils: 
manufaciura and export of Activated Carbon; manufacture 
and- export of Rubber Gloves; formulation, inland markating 
end export of Pesticides; manufacture and assembly of 
Sprayers and other Agricultural Equipment; technicatand 
supply services and tclondwido. distribution. of Industrial 
Chemicals and Oyastuffs. Engineering & Office Equipment, 
Printers* Requisites, Pharmaceuticals and Veterinary Medici- 
nes, miscellaneous Industrial and Consumer Products ■ — 
working in close collaboration with soma of the best people 
in (hut business - BAYER, BOOTS, BRIGGS £r STBATTON,- 
to name just a few. 

Our policy of divenufication has taken us Info ereas of 
activity allied to existing fields of endeavour. When you 
contact us as partners, collaborators or investment advisers, 
we offer you a Century of experience jn Indusny. 

Export and Import. 



^na lx : M: Jti nui COLOMBO ia, 
i * :PL iriun cr-sR lajnjka . 

7 ' f * it: T*G>RAf-y 7 S HARKEN 

rt :i ex ms CMBO 



We shall locate reliable clients/suppliers 
companies interested in selling tech- 
nology and act on your behalf. 


For your requirements , and prompt delivery 
of any oil seeds, essential oils 
coffee. Cocoa, kapok fibre 
p lease contact 


F.O. Box No. 17SI, Colombo. 

Phones: 29307-25655-85040 ' Telex 1254 ‘SESES’ 

is the First name In 
Sri Lanka for 

• £ I S!l».J?*F 5T ^ TE • MOTOR • MARINE 

1 * ^.^^NICAL • FOUNDRY 



with a record of continuous and unparalleled Service 
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Jfciflncfa! - Times Wednesday May 31 i9?g 


.v..vwj!V - ' 




Progress on trade zone 

pwptl free trad* me looked holding tax on royalties 
ill - conceived, inadequately technical service 
organised and ever-ambitious. would be 10 per cent. 

It had merited a mere para- personnel are to be 

ertebhshTng proposals 


"'ith- negotiable (it depends on -who Government would have to nse fact, the employment potential manufacturing, which Singapore 
mes and you speak to whether this is it B large majority to push it is unlikely to be much more now finds less attractive. Cynics 
parents so) are based more on the through. The -Government, than 10,000-12.000 in the first see Mr. Lee Kuan YeWs recent 
exemnr SfJf” ““I- t*?® instead withdrew the relevant five years (projects approved so visit to Colombo as an attempt 

graph In the United National from tax, and dividends to non- and Singapore th a 11*00 a need clauses, saying that separate' far are expected to employ to monitor the p ™S r ® ! ** “ 

sl,areh ° lders 1“ recoup infraSruclural costs legislation would be introduced some 3.000) and foreign «*“*}£ But 

J r 1 T ej r r ! lon ' 11 was rcmi ^ ta J le tax-free. There which would have produced a to make existing laws inappiic- exchange earnings are unlikely fficia3s in Srl Lanka report 

™uld be guarantees over the figure of Ks 600.000 able to the free trade rone. This » lerge-perbans less than on tte £ o{ 

and lofty terms as a second free transfer of capital, returns . h ,_ „„ t j nn _ could be earned by sending ® „ic„s 3l - 

Singwore.” And « late as last and proceeds nf KiiidatkT I ^“ 1 ? nsl ? c,y - ? 0w 7' r - . ** ,et “ be ? one - „ workers to the Middle East. SL‘l a “ ^ffer 

Januarv when Parliament was Th* rvnw».?«ri#.» . » . premium does not undercut Sn As a result of all this, __ _ , . .. with him and keenness to oner 

■Kami ary. wnen parliament was The Commission i is assessing Lanka’s competitors, and is re- unchanged labour laws apply in . Commission jlsa points technical assistance. 

**“*’ “ AH the same, as one senior 

Commission member acknow- 
ledges, Sri Lanka still has to 

I ■ . <■■ huu iv bjuhim laiw ov« M3 v» vuguuc | os* v c an WHVU3 iinnoj *■ - - . ... t break through “30 years of 

v __ t 4 ... , ff nerale ein ' ium P sums necessary to press where a worker has committed mo f® 15 e3cpecte ^ administrative lethargy." and 

earn f ° re ‘|S n «- ahead with working-class hous- a thejt) to sack a worker with- reduce the massive mwonties ^ capacity of the administra- 
te fbee with reality and words change, develop techno ogy and i ng in the area. out the consent of both the governments have traditionally u t galvanise Government 

“V™ t0 Wo ? H Se l0Cal r . 3W . ma , tenals - Just Sri is also h oping t0 wor ker and the Department of had with the swings in 'electoral deparlmeritiJ others into 

11^ ^^IT mlleTTeetTRd ^ h -°7 f? U ^ UU ? y 3nd , con - attract banks to the znSe. but Labour-a provision which sen^ment and to keep the ac £ on remains M unknown 

Wne ..f , .).^ ! l>me i concentrated sistenlly this is done is unclear, there has been little interest so employers in Sri Lanka have UnI . ,e J J National p *™ y ’ factor. Businessmen planning a 

2° development but final terms are decided by f ar because as one Com- railed against for years with- traditionally wins most vote., in viS j t t0 Colombo this year 

™ r •»”* 200-acre phase of negotiation. mission member puts it, out success. power. should prepare for a minor dis- 

a small 5 1 0-acre investment pro- The expectation is that most “there are no buildings On the broader question of Most Interest appears to appointment if they expect to 

tnooon rone (IPZ) at Katun- projects will be joint ventures j B l" The idea, however, is to political stability in the country, emanate from Asia. Reports of see an efficient airport and sea- 

yake near Colombo* airport, with local partners, allhough a u ow f are j gn hanks to provide which will also concern special interest from Singapore port, ready-made factory sites 

Jukd tbe five members of the there Is no requirement to this ] 0ca i offshore facilities, investors, the Commission says are difficult to gauge. Although with good transport and com- 

Groater Colombo Economic effect Companies would he Although this too would be on the free trade zone will be Singaporean investors are munications links and a 

Qpmssisston (GCEC) established locally incorporated, bui shares tenns su bject to ’final negotia- difficult for a different govern- obviously looking for outlets perfectly-running zone autho- 
rs ran the whole are* are work- would be freely transferable, tion. banks coming into the zone went to dismantle once it is for their funds, Sri Lanka also rity. If all this existed, they 

iggcorefully through 39 firm _ - would receive a five-year tax established, if scores of factories has much to gain from Singa- might have arrived too late. 

mxMite which have so far LOImOlS holiday and thereafter be sub- are earning foreign exchange pore in so far as it seeks to Chris SherwdI 

^merged from a flood of ject to 5 per cent tax on offshore and employing thousands. In take on projects like garment V/U«a auciweii 

enquiries Imports of equipment, con- banking profits and 25 per cent 

The Commtestou, which is struction material and other ^ 0n gener al banking profits, 

retying on its collective business inputs would be free of controls biggest question mark 

experience to help flush out * n d of duty. Likewise export banging over the free trade zone 

dubious suggestions and de- controls will be absent but ex- TOOceri j S labour— probably the 

mends detailed figures with port duties may be levied or one f actor a f ter capital repatri- 

each proposal, has so far exempted on finished goods in ation fac jjities that prospective 

approved nine project* and certain cases, at a rate depend- investors look for. The attrac- 

allocated sites for two. Its »«g on the capital investment tion g ri j^ni^ \ s offering is its 

target for the end of the year and degree of processing of low wage ra t es At USS1.25 a 

for the IPZ to receive electricity, local materials and technology. day for g^nied workers. US$1.00 

water supplies, drainage and In the case of rubber process- for semi^iciHed and US$0.80 for 

telecommunications link* looks in*, duty would be expected to unskilled, they are among the 

achievable, but a promised air applyi »t the moment there is i owes t j n flj e world, 

cargo terminal and container ■ duty on the export or sheet 

marshalling yard are far less rubber and a rebate is given T 1 

likely. on the export of crumb rubber, Uvgfll 

As ambitions have become aTJ d this would be maintained q>b e main worry over labour 
more modest and the approach f° r processing done in the IPZ. concerns ^ legal position. Io 
more measured, the zone is no Projects also stand to benefit j anujW y th e Government pub- 
longer being touted as a more if they are sited in the a draft jaw for discus- 

panarea for the country's ills Ipz rather than supply within see ju n g t 0 restructure 

or a magic wand to be waved lhe larger area of authority industrial relations in Sri 

for a secure economic future, which is the Commuuion s free Lanka. The usually fractious 

and the Commission itself is in trac | e zone prope .j CoQcess,ons labour movement united to 

no rush to see projects installed. imports would nevertheless re j ect j t completely because it 
The zone is now regarded as be available to projects in the a p peare d t0 do away with trade 
something that cannot be area of authority but outside umQQS altogether . The Govern-, 
established overnight or «he Ipz provided they are 100 ment ^ ^ that it will 

rendered wiccessful m less than P" wnt export onented. introduce a bill applying only 
a f | "*w years. There is also an An>one wishing to establish tQ public secl<jr wor kers. This 
appreciation that western himself outside the area alio- has ^^dy raised some ques- 

ravestont, worried about Sri gefher to be near raw materials nons of bow far {j overn . 

Unka's unattractive requires .he mnditun ment js prepared t0 press home 

■tmn and land takeover policies of the relevant l.overnmeni de- . iment j ons 

m the past, need convincing part mem to beneht from any . ... ... . . 

about changes now raking place, the incentives available inside Se~nd, the bill which tiie 

it a time when depressed the area. . government introduced in Par 

winonrc conditions make them In the IPZ itself investors lument ,10 
reluctant to invest musi pay an initial premium of gave the Commission special 

The sow nevertheless offers Rs 300.000 (about £10.000) and powere to prevent the formation 
atSrtS^ax advantages. After an annual nominal quit rent of of trade unions and to vary con- 

> five-veac tax hohday income Rs S. 000 for a 90 -ye*r lease of ditions of senice and fix 

• _ _ _ — — — — > I- -m n'MB nroime TOT 1 H I in 1 

t«x on 

/garson cumberbatch 


can help you set up a 
new business in Sri Lanka.. . 

Wa ara ena of tha shfaat Companlaa which 
hava for 11 providing apacicllcad 
Secret arid ft ManagarlcI a.rvleoc to leading foreign 
ft toed companies. 

In raeent years, wa have diversified into a number of 
new fields. Including Tourism, Hotels & Exports 
of Gama. In these ft other areas, there are 
opportunities for expansion ft wo are interested in 
getting in touch with foreign investors 
who will collaborate with us In new 
business ventures. 

The proposed Free Trade Zone offers wide scope 
for eush ventures.' We era also interested In acting as 
agents or representatives for manufacturers. 

Our present sctlvirias,:- 



Tha Experience, expertise, & resources, we have gathered 
overthe years in the'abova tie Ids, are available to you. 

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4th Floor Australia Building, Colombo 1 
Telex: 111S Telephone: 2596S 

P. O. Box 24 Cable : CARSONS 

turnnver wnidd be 2 p^r nne acre siV. The figure,, minimum wages. This was ruled 

J^STL^intrira oZ wh”"h mav be different in inconsistent with the country's 

rent on sales tx> countries on. whu* m ^ * constitution, meaning that the 

tide Sri Lanka (5 per rent on 



counts, and those -will no, a-**™ - *^ h ?W*3h , «S£ 

hut w'iim™ ik'es Th^ Government has „ons ef the Government more 
adtlMion to them." The lesisla- ahwn ^“SSinl bank, however, 

^ n ;„t»'|oS^ ou asSttt 

officials at the Department of Q ° of uni o n at new policies of liberalising the 

Lahour are not sajing whether Thjc j« seen by economy, accelerating develop- 

« be passed this year, and »«HhBr mill. Tbm ^ projects and encouraging 

qn:'’ whether the Govern ment 's ^ p Wldesprea d practice export-oriented foreign invest- 

r0,r T,n"nr?eTuni V oS a% oT^new government repladng ments. For those in work. 

*h‘- w"»on* few unionists are - ~ ^ ' lt arr ivBs in wages remain among the lowest 

ca'.ecnncally prepared to say at « oncers m ' , - 

exer- in the world — about US$1.25 a 
this siage. Mr. Bau xampoe mass patronage" which, day for skilled workere US$1 

of the powerful Ceylon Mercan- particular eases, repre- for semi-skilled and US$0.80 for 

t,lo Union. fnr ^example. / n p aUe , n pt to get rid of unskilled-and this is one of the 

believe* ii is. but Mr. R Thonde- ' llpn un ions rather than mam aitractions the Govem- 
m.m of the Ceylon \\ orkers as suc h. Some estimates ment is offering to prospective 

Con press, representing mainly the num bcr of workers dis- foreign investors in the pro- 
pl. ini at ion workers, prefers to U, 1Ss;ed since t h P July election pose^l free trade zone, aarifl- 
*pp it as a process of learning u bitlh ss jo.000 ind the num- cation of how the labour laws 
for the Government and a demo- ^ „ pun j t j VP transfers " of will apply there is still needed, 

cratm response to public tMcher * at it. 000. however. . . 

opinion. If labour unrest has tend^ 

Some union leader* mean- From the umonr T»int of t0 hamper growth In the past 
while are continuing to mobilise view the high unemployment it B0W appears to be doing so 
itielr members against the rate — over 20 per cent—is j es5i Government figures indi- 
Dbnned icgislatlon. and before hardly conducive to worker rate tha t the number of man- 
Mav Dav sought to take the fight solidarity at shop-floor level. days lort through strikes has 
on ' to a more openlv political .Again, political patronage is fallen during the past three or 
plane, a move that was rejected apparent: instead of implement- four years, and over the past 12 
bv others and has threatened to ing its promise to replace the months the unions have tended 
undermine fhe unity forged in “rhlf system, which required to con Bne their opposition to 
reaction to the White Paper, a work-seeker to have a note Government s proposed 

Some State sector union* can from his MP, the Government s legislation to comparatively 
H» pTnerted to trv and resist new “jobs banks Bcneme is action. 

' the law to tending to operate in a similar A mDre important labour 
fashion, leavi ng the unions no problem is posed by the exodus 

of professional and skilled raan- 

be expected to 
the move to apply 
them alone. 

for new business in 
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P. 0. Box 913 Colombo. Sri Lamw 
Tel: 85-192-4 Cables: 'Colag 
Teles: Va vales 1J38 

power for employment abroad 
particularly in the Middle East 
and Africa. The shortage of 
doctors and accountants has 
become acute, and the loss of 
skilled middle-level technicians 
and craftsmen, such as elet> 
tricians, mechanics and welders, 
while boosting foreign 
exchange reserves and amelio- 
rating domestic unemployment 
could hold up future expansion 
Businessmen are already com- 
plaining, but accept .that the 
only way to cope is to train new 
people in the skills lost. 

Businessmen also object 
fundamentally to the Govern- 
ment proposal for worker parti 
dpation contained in the White 
Paper-one of the few ideas in 
it welcomed by the unions. 
Altogether it means that the 
UNP has brought a sterner face 
to labour relations in Sri Lanka, 
and may have set back rather 
than promoted the chances of 
tripartite- involvement by 
management labour and Gov- 
ernment in economic policy. 

- Chris SherweH 




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For State Fertilizer Manufacturing Corporation, 
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Take Counsel with 
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LIU tie 

Industry needs 

a helping hand 

IN ITS efforts to raise .the low ees from one union with those 

growth rate and reduce the high of ao other. . .... 

f . . cri The pnvate sector, which has 

levd of unemployment .in Sri als0 op p era[e<i „ low „ paat y 

Lanka, the Jayewardene Govern- but generally been far more 
ment aimed a number of its efficient than the public sector, 
1678 budget measures directly is similarly expected to benefit 
at the manufacturing sector. As by the easier access to raw 
a result, Sri Lanka's “inward materials, machinery and spare 

, , - . , , . j parts and the removal of the 

looking, heavily protected and * unumae ^ tape (and 

controlled import substitution ^lack market) associated with 
industry” (as the Central Bank licensing and controls. This is 
itself describes it) is standi og expected to make planning 
exposed to the rigours of out- much easier' and individual 
side competition — and no nne businessmen more ambitious, 
is quite sure how the sector Some of them may find it 

itself will cope. betl ? r 10 « rt “ n 

. goods now that they are freely 

The relaxation of most import available as imports. Some will 
controls, in a move which be forced out of business, in 
accompanied the Boating of the line with the Government’s 
rupee and unification of its view that a company unable to 
exchange rate, removed at a stand on its own two feet after 
stroke one of the main causes 15 years of protection deserves 
of the manufacturing sector's to fall down. Certainly those 
poor performance in the past — who have exploited their shel- 
the inability to import raw tered existence to make high 
materials, machinery and spare profits and shoddy goods face 
parts because of a shortage of a tougher time. Poor planning 
foreign exchanges. and inefficiency will also be 

The move was made possible P enaliied - 
by buoyant tea and rubber However; the Government is 
prices, remittances from not apparently expecting people 
workers abroad and the pros- to be thrown on to the job 
pect of further foreign exchange market. On the contrary, in 
earnings from the proposed free anticipation of better times, 
trade zone. But its impact, to- and in return for ** freeing ” 
gether with a new import tariff the economy, the Government 
structure and relaxation of price has ordered companies through 
controls, may be l imi ted.' tnr the chambers of commerce to 
the economy as a whole because take on 10 per cent more staff 
manufacturing's share of total to case the existing unemploy- 
output is small at 12.6 per cent meat problem. Most employers 
— a level that has remained appear to be obliging, even 
broadly unchanged for some 20 though the jobs created are un- 
years— and it employs just likely to be productive. Their 
115,000 people. ' . . willingness is partly a reflection 

of the flexibility produced by 
FriVlOnraf A labour-shedding in recent years. 

UlVigUiaiC It is also a sympathetic 

The underlying aim. however. ^ m % nL t0 * ****** 
is to invigorate the sector itself, g , “ 

which in growing at less than Another reason, though, is 
2 per cent a year over the 1970- * hat so far the government's 
1976 period (1972-76 target: Si action on imports has actually 
per cent) and at just 1 per cent l,een dotted. Some items — food, 
in 1977, has failed to generate fertiliser, precious metals and 
employment and has .steadily alcohol, for example — still 
became uneconomic behind the re quire a licence. Others have 
shelter of protectionist barriers. ^ a d a tariff put on them, either 

Mr Wnnni- rfo to encourage investment rather 

consumption, as in the 

not wish to be landed with 
goods they cannot sell. 

The main reason, though, is 
that companies lack .the ready 
cash which banks, themselves 
facing a liquidity problem, are 
demanding first. Only the State 
banks (the Bank of Ceylon and 
the People's Bank) have been, 
in a position to mobilise savings : 
easily, and they have mostly 
lent to State undertakings, 
where the rate of return has 
been low. This has tended to 
starve the private sector of 
working capital. With interest 
rates at 15-18' per cent, a de- 
valued rupee and priority being 
given by the banks to essential ; 
industrial inputs, the slow pace ' 
is no surprise. 


Finance Minister, warned in his 

zssst swt: s isrsjsrf&z 

enterpri se, ,n particular, which Uon for inaBSt iy, which 

s , C f ! producing for such a small 
lestlm afea wry ) of the value loMl market in the put has 
of manufact prndu^on, not braegted the 

wouldroot he penmtted to fun* eKraomieB 5 „ Ie am )arger 

S * f"? ,?T ■"""uficturere abroad enjoy 

2££. ™ '” er -,. He *« lr and would now stand to In* on 

import monopolies m items like both rice ua consumer pre- 

^,L > ^ i t >l Xt ^i 1 CrUd ' °“i ““ore for imports P 

*"“*»« and Tbij conttnuiDg protection. 

, >hou gb substantial, is not 

ing decline in standards of ^ ways consiitent . , nd tbe 

1 SurT° L^! fo rm ??“ * nli Government has had to estab- 
J autonomy to lisb , review 

r* - <« iron out anomalies. One 

and nuSL PeIJ ' ule ™ local company found that au 

and public transport imported pesticide was more 

This should help. The fin an- protected than its own, and the 
cial. performance ot both the government soon responded. 
Ceylon Petroleum Corporation The committee is expected to 
and the National Textile Cor- provide the Government with 
poration, for example, has suf- an opportunity to develop a 
fered by the refusal to allow rational tariff structure as part 
price increases to cover higher of a coherent industrial policy, 
raw material costs. And many 
state industrial corporations T? p]q YSltinn 
have found decisions on capital AXW * OAailW11 
expenditure, factory location As for tbe relaxation of coo- 
and _ recruitment being made trols, businessmen are not 
after direct political interfer- bursting to import goods, in 
ence. spite of the years of pent-up 

In an attempt to end the in- demand. This is partly because 
efficiency which has retarded many companies are simply 
growth in the past, the govern- not used to importing, or can- 
niest has also put in private not find sources of supply (some 
managements to run some enter- of the newer firms don t even 
prises— like the textile mills of know where to look), ana 

the National Textile Corpora- P^y because importers are 
tion, which Mr. de Mel strongly uncertain of the market and do 
criticised along with, the Cement 
Corporation in his budget 
speech because of their low 
capacity utilisation. The over- 
all warning has therefore 
become dear: operate efficiently 
from now, or go to- the wall. 

How far the Government 1« 
prepared to take tins policy 
remains uncertain. In the case 
of the textile mills,. labour prob- 
lems have, already appeared. At 
the Thulhitiya mill., which has 
not achieved .50 per cent capa- 
city utilisation over the past 

five vears, the new 'managers 
locked out strikers reacting to 
their efforts to end over- 
staffing. The strikers then re- 
ceived a letter— not from the 
management .• but from the 
National Employees’ Union 
(NEU), which is aligned with 
the ruling United National 
Party (UNP>- The letter ad- 
vised that they could have their 
lobs bade if they joined that 
union. Most returned. 

On the other hand, the new 
management at another mill 
found the NEU complaining 
that its members were disad- 
vantaged in matters tike promo- 
tion after seven years of 
dominance by the previous 
government’s union. In this 
case, senior UNP officials are 
said to have ordered that the 

necessary corrections be made. 

The management 3s refusing. At 
the heart of this Issue is the 
now-established practice of new 

■unarm naiiiti replacing aoopioy- 

All the same,* the Govern- 
ment wants to see things pick 
up. Businessmen respond simply 
that seven years of economic 
mismanagement cannot be 
shaken off overnight. They are 
quick to point out that the 
Sword of Damocles which made 
the past seven years a fight for 
survival — namely, the 1970 Busi- 
ness Acquisitions Act— is still 
hanging over their heads. This 
was applied extensively under 
Mrs. Bandaranaike’s rule, and 
many businessmen have yet to 
receive compensation for take- 
overs made under* the Act. 
Though tbe business climate has 
virtually transformed over the 
past year, they still want the 
Act repealed if they are to 
move into any large invest- 

The loss of skills to the 
Middle East and Africa is 
another serious problem. The 
“ brain drain ” of accountants 
and others with administrative 
and managerial skills has 
deprived the large public sector 
of the talent it needs, and 
recruitment has not been helped 
by the limit on public sector 
salaries, which provides little 
incentive and throws the door 
open to corruption. Now the 
“brawn drain" of skilled and 
semi-skilled workers, numbering 
thousands each month, is 
preventing contractors tender- 
ing for projects, forcing 
engineering companies to 
upgrade their second-rung 
workers and causing worrying 

In the end, though, a major 
constraint on manufacturing 
growth is the small size of the 
domestic market. The hope is 
that exposure to competition 
from imports will so improve 
efficiency and product quality 
That export markets might begin 
to be captured and encourage 
expansion. Participation in joint 
ventures with foreign partners 
in the proposed, free trade zone 
may stimulate this. 

Export incentives tend to be 
inadequate, however, and 
further help may be necessary 
in the form of subsidies or tax 
concessions. This is especially 
true if manufacturing is to grow 
outside the free trade zone to 
ensure balanced development 
Likewise, the tax breaks for 
small industries given in the 
budget may need to be 
reinforced if manufacturing is 
to generate more employment. 

All this would have To be part 
of a coherent medium- to long- 
term policy to back up the new 
Government’s overall aim of 
-encouraging export-led indus- 
trial development. This has not 
materialised yet For the 
moment tbe achievement has 
been to point policy in a new 


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Telephone: 922SS-7 

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Telex: iiu . 

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Items fa. rtgulrr 'production, available for export are; — 



Largest consumer of natural . rubber for industrial purposes In 
the private sector, 

185, Union Place, Colombo 2, Sri Lanka. Telephone! 23tM. 
Cable: "MOTORWAYS/* Telex:. CMB. 1 288 Answer BaekiELCORP 

Aitken Spence 




P.O. Box 5. Colombo. Sri Lanka 
Telex: Colombo 1142" " 

1 G i 

“Financfal Times Wednesday May 31 1973 



F arming lacks funds 

IT IS ■ const* or surprise to the 
visitor rn Sri Lanka that the 
apparently green and fertile 
island 1 ? nni self- sufficient in 
/nod. And iho visitor quicklv 
finds out that substantial 
minority of the 14m population 
live in near poverty conditions. 
Also rural unemployment is as 
serious a problem as urban 

Like earlier governments the 
administration of President 
Junius Jaycwardeue is thus 
Intentionally devoting consider- 
able resources to the 
agricultural sector. The single 
mn?t significant project is the 
irrigation scheme associated 
with the Mahaweli River in the 
North and East Centra! areas 
of the island. The project now 
being carried nut in a more 
limited and accelerated form 
than the original 30-year scheme 

proposed by the VN Develop- 
ment Programme and the FAO 
in the late 1960s, is apparently 
also being used by the 
Government as inspiration to 
fire the political will f(, r deve- 
lopment among the population. 

For the moment agriculture 
is largely in the doldrums, with 
optimism mainly based on the 
continuing high world prices for 
tea and rubber.' Recent growth 
rates are unlikely to be sus- 
tained. Exceptionally, the rice 
harvest has been increasing, 
wi th the 1977 crop of 80ra 
bushels an all-time record. Dis- 
tortions in the market, however, 
persist because wheat, wrhich 
has to be imported, is still very 
heavily subsidised. Rice has 
therefore also had to be kept 
comparatively cheap, meaning 
that the selling price for the 
farmer is still too low'. 

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23 . York Arewfo. Cotombo T- SRI LANK 
TolopRono: 2 S 7 fl 5 -« 

lex: 1T36 Vavalax Cabto: "MERCA 

This is so even after the Gov- 
ernment increased the price 
from Rs33 m Rj>40 a busheL The 
polential. however, is for 
greater yields as the Mahaweli 
scheme progresses further. 
While that may take time, 
farmers are aided by the 
stabilisation of fertiliser prices, 
which have remained unchanged 
despite devaluation and the 
need to import almost all - ' 

When eventually completed, 
the Mahaweli scheme envisages 
the irrigation of 900.000 acres of 
land and the generation of 
2.037 MW of hydroelectic 
energy. Construction of a 
diversion oo the Mahaweli 
River, up in the centra! hills 
around the town of Kandy, 
started in 1970. By 1976 tw : o 
tunnels, a weir and canal im- 
provements had been completed, 
and 70.000 acres of new land 
had been brought under cultiva- 

The decision to accelerate 
the programme was taken in 
November 1977, and the main 
parts will be completed in five 
or six years.. Even though the 
estimated capital cost has risen 
from Rso.Bbn in 1968 to Rsllbn 
on the revised programme, there 
is still considerable interna] 
confidence of ils success. Part 
of I his comes from promises or 
near promises frnra the Aid to 
Sri Lanka consortium countries. 
They are expected to end up 
nrnvidinc half ihe cash. A per- 
tain amount of budget strain is 

expected while Sri Lanka pro- 
vides the rest of the money. 

According to the Irrigation 
Minister. Mr Garaini 
Dissanayake, Britain has proved 
the fastest in showing its inten- 
tion of support. A grant has 
been awarded, amounting to 
£60m, for work on the Victoria 
Reservoir — its full cost Three- 
quarters of the work of informa- 
tion gathering has already been 

West Germany is said by the 
minister to be -committed to the 
Randenjgala multipurpose pro- 
ject and.canal, while Sweden is 
committed to a share of the 
Kbtmale project Of the other 
schemes, attempts are being 
made to attract the interest of 
Japan in the moragahakandu 
project, while Sri Lanka itself 
will look after Maduru Oya 
reservoir project. Mr. Disana- 
yake. hopes that other consor- 
tium countries >1111 individually 
or jointly accept responsibility 
for each of the remaining 
schemes in the 12 projects at 
present envisaged. 

The minister’s confidence, 
however, is not fully backed by 
the individual consortium 
countries. At this stage of the 
Mahaweli scheme not a clod of 
earth has yet been turned, and 
for several countries their readi- 
ness to offer capital assistance 
depends a great deal on the 
degree to which projects are. 
considered viable, something 
which is not yet clear. 

It is only now that the 
Japanese Government body, the 
Japan International Cooperation 

Agency, is sending a ten-man 
team to do what they call a pre- 
feasibiiity study on the scheme: 
the survey is expected to last 
up to 18 months. Only then, 
according fu Japanese sources, 
will a firm offer of cash assist- 
ance be made. Canada is also 
prepared to do feasibility 
studies before a consideration 
of capital aid, and thfe United 
States position is that it will co- 
operate on any .downstream 

The overall plan is that Sri 
Lanka should become self 
sufficient in food by the com- 
pletion of this stage of the 
Mahaweli project, that is in five 
or six years. The 600.000 acres 
to be brought under irrigation 
by the scheme will certainly do 
this, all hough foreign experts in 
Colombo say that self sufficiency 
could he achieved anyway -in ten 
years. Arguments can be. made, 
they say. against the Mahaweli 
because of. its tremendous drain 
on manpower and capital. 

Like Sri Lankan industry', the 
project is chasing after an 
increasingly limited number of 
skilled engineers, many of whom 
have gone abroad, particularly 
to the Middle East Unfor- 
tunately the same attractive 
expatriate salaries as.for foreign 
exports cannot be used to coax 
them back, although the United 
Nations Development Pro- 
gramme i.«i working on a scheme 
to boost their income. . 

in the meantime the 50.000 
new acres becoming available 
annually are considered even by 
the Ministry of Agriculture to 

be more than can be brought 
under cultivation each year in 
terms of farmers, seed and 
fertilizer. Other Government 
bodies, responsible for the 
development of sugar and 
fisheries, complain that they are 
being starved of funds. 

One of the biggest unknowns 
about the Mahaweli project, and 
conceivably its greatest chal- 
lenge, is its social component 
Room is expected to be created 
for 200.000 families during the 
next five years. These will come 
from among the rural un- 
employed and in the later stages 
from the urban unemployed. 
These settlers will be easy 
enough to find: some are already 
in the area at w’ork on ihe dam 
and canal building. But in the 
short lerm they * Mill face 
problems with the limited 
supply of fertilizer, draught 
animals and tractors ■ for the 
basic 2i acre plots they will be 
given. And io the long term the 
satisfactory growth of new 
village units acting as produc- 
tive agricultural groups will be 
a major achievement. 


Vigorous growth 
in tourism 

- . . . " 


v.-a t ; 

Apart from rice, which has 
already achiered its break- 
through, the other two crops 
considered a priority are sugar 
and dairy produetion. Both tbe 
World Bank and the Asian 
Development Bank consider 
that sugar has a very good 
potential. With dairy products 
Sri Lanka desperately needs 
more milk. Although produc- 
tion increased from 440m pints 
in 1976 to 468m pints .in. 1977, 
the collection hr the National 
Milk - Board decreased -from 
105m pints to 96m pints in the 
same period. 

Tbe basic infrastructure for 
agriculture remains potentially 
chaotic. The most recent annual 
report by the Central bank 
records that “ criteria tor agri- 
cultural lending under the com- 
prehensive rural credit scheme 
were drastically relaxed for the 
, 1977-78 maha l major paddy 

“THE UTMOST Indian isle, generated an idea that tbe local. The hotels alone have 9 000 on crop) season. The consequent- 
Taprobane.” was how Milton, resident is how a second class their staff. The rest are d i£iri- loan recovery problem is now 
in his love of strange sounding citizen. Criticism is often made buted among .tourist shops, being examined.” The figure 
names, called Sri Lanka. Ho in the Press, (and with some agencies and airlines. The most f 0 r °cash handed out was 
even expected his readers to truth) about soaring prices and popular time to arrive in Sri r 5 600m as opposed to a usual 
sound every vowel in that Greek the poor service accorded in Lanka i$ from October to March, figure of Rs 120ro. Appeals are 
name (putting Uie accent on the hotels lo local residents. Also Arrivals in these months range now being made to the Gnvem- 
first syllable) to get the full an object of criticism are the from. J 1.000 to I8J000. with a menUo improve its supervision 
flavour of the place. But most hippies, who are only tourists peak in December of 19,000. But and administration and " take a 
people today may be as -.on- on a shoestring budget. They even ofLseason there are over tougher line against habitual 
fused about the pronunciation try to live cheap, look scan- ^00 \ isitors each month. defaulters. . V 

uf. Ta pro bane as. they possibly daious wearing native clothes T n PprjmmnprillpLA Simnn Hendprcnn 

are about the identity nf Sri and are also blamed for the - A ’ P ‘ rCTam m ienii eKe - S HnOil IT en tiers OH 

Lanka. increase of drug addiction and 

As visitors soon discover. Sri for being a threat to morale. 

Lanka is not a part of IniTia The reaction lo hippies going 
even if that is how it looks on native in dress seems curious 
the map. It is a gentler and from a people who value sim- 
kindlier land with a charm of pliciry in these matters. It is 
its own. “Dear ine.” exclaimed probably 2 disappointment at 
Mark Twain recalling his visit Snding the former, colonial 
to Ceylun os it was known rulers walking around like 
then), “it is beautiful! And most waifs, strajs and. hoboes ready 
sumptuously, tropical, as to to doss down anywhere, 
character of ^ foliage and This conflict is also part of a 
opulence of it.” silent dialogue that goes on all 

A more recent compatriot of the time between guest and host 
his who stayed often in Sri while the western guest with 
Lanka found that first impres- Tennyson, or for that matter 
sions are righi. “The people.” Rousseau, imagines he is now 
wrote nm*ehst Paul Bowles, jo the land of the lotus-eaters. 

-were unusually sympathetic the eastern host tries hard to 
and hospitable, the food was reconcile his first impressions 
the best I had encountered in 0 f the white man picked up 
an equatorial land, the hotel from books with the real thing 
service was impeccable, and, n0 w before him. 
most important, the place 0ut of ^is comes 

possessed an inexhaustible ?f>mP very ijTl eresting reactions, 
supply ^ of superb tropical Q n ti]e anC j ent a ties route, 
scenery. which takes the visitor back 

Last year’s figures for tourism j.qoq or 2.000 years, he may well 
in Sn Lanka indicate that these marvel at the engineering and 
much desired qualities, as irrigation skill of a people who 
natural to the place and tbe worked with nothing more than 
people, are being greatly appre- Novels and- pickaxes. Or. like 
ciated. For the first time the Thomas Morton; the Trappist 
number of tourists from West- monk, he may return bewitched 
ern Europe alone topped the hv jhe sculptural miracles of 
100.000 mark. The total poionnaruwa. 
exceeded 150.000. .. Looking at these figures.' 

What is even more encourag- Norton writes, “ I was suddenly, 
ing is that the American tounst, a j m0 sT forcibly, jerked clean out 
a comparatively rare bird in 0 f ^ habitual, half-tied vision 
Sn Lankan waters, has begun of things, and an inner clear- 
to make this his watering pLace. neESSr clarityi as ^ ending 
American arrivals to the island from -rocks themselves, 

have remained static over the b ecam e evident and obvious, 
years, hut last year there was ^ queer of th e re . 

a 30 per cent increase: the total lining figure, the smile, the sad 

° rth Amenca smile of Ananda standing with 

10.000. an increase of 2,500 over anns foIded (much more rilD _ 

the pre'Jous >ear. perative” than Da Vinci’s Mona 

Tins is being attributed to Li5a 5ecause ron]pIetely simpJe 

better airline connections and ud straightforward) . .-. I 
attractive fares, but the Govern- dftn ^ know when in my We I 
meni < Tourist Board claims the hare ever had mcb a sense of 
credit is also due to intensive beauty and 8^^ validity 
promotion efforts by its over- ru^^g together in one 
seas office. On the whole the aesthetic illumination.” ■■ 

To,, rut Board seems pteased At „ t the - 'Germans 

with last years performance appear ro be . ^ mDst t0 

because tourism is now the romp in the lden Qf SrJ 

largest foreign exchange earner coasts< buy the batiks 

in the non-tradilional sector and and the handicrafts which 
occupies the fourth place in the ^fleets facets ' of Morton’s 
top ten. beating gems and « aesthetic iUumi nation *’ and 
cornnuts. enjoy the air of eternal summer 

What this seems to indicate j hat Sri Lanka has To offer at 
is that- Sri Lanka has a sound some of tbe most attractive 
tourist potential- If the increase holiday terms Jn the world. Last 
in North American visitors is year nearly 30.000. of them 
any indication then intensive visited the country, an - increase 
promotional campaigns are 0 f almost 10,000 ■ over the 
likely to draw more visitors, previous year, 
provided the image of Sri The next in line are the 
Lanka is projected well. French. Last year’s figures show 

No other land perhaps offers that over 175,000 visited the 
such quick changes of scene land which was an increase of 
or climate. The coast with, its over 6,000 from tbe arrivals for 
golden beaches is tine chief the year before. Visitors from 
attraction to the landlocked Britain are lower , in the list 
European who enjoys un- with the Swiss and the 
polluted sea and gfanr breakers. Scandinavians taking preee- 
But what makes his stay' by the dence. ' - - : - 

beach even, more attractive Is Sri Lanka’s young tourist 
the price he pairs for his sea industry continues to show some 
food. A lobster meal for three vigour in its’ growth. It has 
may cost only a couple of absorbed nearly 14, Q00 em- 
pounds. ' ployees in the ^different 

But .tourism -has -also branches of the tourist trade, j j 

The word Ceylon is 
our promise. 

\ou can he sure 
everypack bearing it 
contains superb 
Ceylon tea, 

lea lovingly grown, 
picked and selected on 
thelslandof Sri Lanka, 
Light delicate and 
fragrant teas from 
the high regions. 

Golden round-flav- 
oured, rich teas from 
the midregions. 

While the lower 
regions grow teas of 
deep colour and 
mellow flavour. 

So next time you 
want fine teas look out 
for Ceylon. 

"fou’il see we’re as 
good as our word. 


• r-.v- # 



T he PEOFlE S CANK ?t 

of rh in as in Sr-i Lanka ; ’ is:;s.!so -around. .'wofiti;' 
serving- un -Jo ns throu9jVa:-net--Svprk;pf^cOr-respo'.n-f 
u ' v -V ' ■' A-. A,: ■ >' 

’• .Wsi -are.', fofe’/er iorgjn-g-r-riev,'’ ties'.-.andV 
sire ng nV-n : fig- e;<is.!ingi 3 ssbdra t foils' •• -*v i tb- f bed n lot-): 
national comniunir-/.. A' : - - yVy';^..,..... a.. ' .-.A 

Our . correspondents .1 
. point of co,ii.act for’. tndusrr ndis': 
k 1 1 < q. ' .to Tie ved g'p. t n e i r b u sinews in 

’Z 01 rif.'.u h d. ; biker .or e^’s .’ . 

’ ^ ‘ i-Ve -dMar vv^cte rrooge 

’‘fhe''v. o fr-^Th t o «■ uvr; on a.J - .'fin-< 
■iA'i.ustTiei.triv' 4 s'nie ms. :• >; 


ore. see - 
iei Tra.dt 

;r- mojefr 

’Up nb- d.ite M yr k t j 1 rit-c II • O cp. 0 . edit 
Fo'nbrjn. E>tclipn tje-' TrarrSBCtiO:v> * . • . ; V’ **,' 

fjou- rosidenrrFp'rcign Gurrcricy. Accounts for Sri Lfinliar.- 

F i od.r> c> -of .i.oit ill. Trrfidiv, ’ -v-' 

■S't’tT.Uns hi'AC'i- rj;ncy. Do pci -si is. ’. •. 

.Documtafud-;* CrecJjX-; sod C.otlcctionf- . V 

Booking .Co'r r/-opqtid'.-i. i .A n .i n gem.tMi "s ' - • -i'. 

We -i-i iio-Oontfibu i-e.--.vij b..p'ur. v ex-per.; isf-k n da nA-ngr 
t i n b nc v f j c f fi c:i it • e s' i m ke.ti .to - Aped ift cj:> Vtij o . t > . . ' 
Oy.* gtoitihly. pub'!ceiip'n‘-':ThA Ecoririmic Hevre/b 
i:-, orVe of our-cominuni;'/ setd’C'e px-ierd A . ; 

Liinkar-i abroad. 

•-n I hrcMj'g.h 
-a-; -These 

n our B u iiome. 

•a e -ihe itBot.ed; ' ff iisted .8a-nic '-fco rnntorr >.;T ; b^nj 


H ead Of f <ce 7 i Sir 
. . ; .-- _e - y O “Box 7 L’S C- 

G.irdM-.i-T Ms'.vSJl’ 

'■f.'!’ B O "Box 7 .-B Cotoi-RfcO 7 S- ■; Vnoltrj. Tj-lepii pne 2 . 7 - 8 AT 9 - 

-A .Eor oign.Qf iir-ch:.'. 'M J €. H .'S.-.j i:Ui pg . '15 1 isiol -Sr r «r •? , b C-o • o in bo i Sr i l 
. yW...'.'- ..CA 3 tE£'; VIDE 5 A BAfvk 'Tc-Iox- 1 143 '.'V.'* • 


zrw SmsaE 




the best address 
in town 

jw?S a® 





,«<.. r » rj .<ii T‘n,^ -g. 1 

. m> *> y:y.i g-f~ >-.<••? 

1 * a«'« 

For busy businessmen on the move, this is 
undoubtedly the best hotel In Sri Lanka. Hotel 
Lanka Oberol is the kind of Five Star hotel you 
are used to:_ the kind that provides snap-of- 
the-finger service and every facility you need. 

Like a secretarial service,- conference 
facilities, telex/telephone/cable service, 
health club limousine service. Travel Desk 
and Barber Shop 

And along with the 376 luxuriously appointed 
rooms and suites, you'll find the best dining 
facilities plus a 24-hour coffee shop service at 
the best address in town. 

Koteb Jjanluu Otmb 

77. Steuart Place. Colombo 3. Sri Lanka. 

Telex: CMB 1201 Phone: 20001 21171 
For rm.erva lions contact: Loews Reservations Inc. 
New York: 666 Filth Avenue, 18th Floor. New York, 
N. Y. 10019 Tel: (2121 586 • 5099 Tele*: 147176-77 
England: C/o Chunchill Hotel. 30 Portman Square, 
London Tel: 486 3213 Telex: 264831. 
Frankfurt: Oberoi Hotels, Jurhessemsuy 6. Frankfurt. 


We *-e noc in nurrusc juidincc. but ipeculiit Tour Opcrito-* with a >U( 
kiiowiedge of the List and your marriage in mind. 


Yn. on your next butincii «mt to the Ea»t. takr hur with you. We can 
n-aLc aU the arrangements and. in particular, at tht right price For initance. 
term nighu accommodation, to* each ot you. in a cn.n room with bath, 
.rntmental breakfast daily. .pn«ate car airport iransters and economy air 

fjffl m>: } hr . . . 


Coismbs i-om £ JOT 50. N*gombo I'om £417 00. after which -rlax on tin* 
btith a: BrntDia or a.nong the cool hills and tea puntations at Nu«ara 
t 1 y> O' ihow her the spectacular Kandy Perahera in August. 

V.i* .an alia aHr, Bangkok Irom £J95.0Q. Singapore Irom £410.00, Hong 
*>0"t t-o-i 1495 00’ Tokyo from £589.00. 


10, Gilbert Place. London WCIA 2JD. Telephone 01-405 0747 

Welfare system 
under attack 

THE PRESENT extent of Sri of Mrs. Bandaranaiie was the return from Europe of Mr. their left wing P«Jies lc t the 
Lanka^ welfare system can be evidenced when Mr. de Mel de Mel, where he has met the elections, ttestadenternn in 
illustrated by the price of pointed out to Parliament that, consortium countries- The vanguard of those who lose 
tickets on its bus transport net- if this total had. been available Government hopes that the in Sn Lankan society, 
work. It costs just Rs5, that is for development they would development of the extensive According to the recently 
less than 25p, to travel from realise how many hundreds of Mahaweli irrigation scheme will created Secretary for Higher 
the capital, Colombo, to the hill thousands of people would have provide employment in the Education. Dr. Stanley Kalpage, 
resort town of Kandy more than been employed , on productive canal, dam and settlement of the 4,000 graduates expected 
70 miles away. And as if this schemes in agriculture irriga- projects. President Jayewardene this year, all those from the en- 
' effective subsidy was not enough tion and industry of lasting says this'shoiild break the back gineering. medical and agricui- 
the buses leave at 15 minutes benefit to the: country: : of. the - unemployment. In tural faculties can be expected 

intervals most hours of the day. Although opposition political addition, he says, 130,000 new to find jobs, as well as most 
The welFare stale and its free groups accuse the new Govern- jobs have been created since from the science faculties. But 
or subsidised goods and services ment of a harrehly Right-wing last July as pan of the for the arts graduates he admits 
have become so developed in attitude to subsidies, there is previous regime's budget are there will be problems. Precise 
Sri Lanka that vast sections uf no evidence yet that the implemented. Ticking off the estimates- were not available but 
the economy depend upon it. Government wants to rid itself various schemes, Sri Lanka's it is doubtful whether many of 
Apart from bus and train entirely of the subsidy element long-standing unemployment the 2.000 probable graduates in 
tickets, until recently nearly and pursue what would be problem almost evaporates in this category will find employ- 
, every family has benefited from considered a distortion- free thin air. Around' 300.000 jobs ™ n t of their choice. When 
a generous rit-e ration. Wheat, economy. President Junius are expected to be created by *|?° of . 

though rising in price, is also Jayewardene insists that health a jq per cent Increase in 2 1 ,000 qualified candidates hunt- 
subsidised. Sugar is available and education will remain free vacancies. in Government * 0T . , t ^ ie umve raity 

nn ration fo children, and milk but hints that trie flour subsidy departments and private in- J 1 * 0 ® 8, *? not ", to r ae £,5\J 

food for infants is supported by will have to be considered and dustrv the JO ner cent * n ” ,n * as Problem of »igni> 

the State. Mosr medical and notes that the transport subsidy apprentice scheme P qualified unemployed has 

dental services are free, as is depends on the price of petrol. A emerged. 

education right through to and Far from being a planned mr .. ,®? ch 1 ?* rob ^ nf . tbe Although at the present the 
including the tertiary level. programme of phasing out the NatlonaJ Assembly will send the tens , on associated with the 
There are generous loan ^sidies, there seems to he “ d . qualifications of Tamil-Sinhala differences 

facilities available to the farmer an attltude almost of.naivrte J?,?? 1 appears to outweigh the student- 

facilities available to the farmer an at titude almost of naiv s te * uw j 0 "*,,. appears to outweigh the student- 

ror grow. n2 me. and feniliaer aLnt how the sobsidiej mhht * a l° b banb ; u ?' n .S ta£d potential for trouble, 

is provided at 25 per cent of evenUiaUy dtaaS Alter h f ^“? li banfe . “mputer ,t is ^ ere ba K Te jlreaSy bMn prob . 
its rea] eost. Almost uniquely ^ November" bS the r.-e 1 "!!” d ,l d t0 m,lch ** p f rs0 “ lems. The universities have 
outside the Middle East, petrol _ . now on j y available to Wl ^ l]** vac f/ lcy -tS™,? 111 ? 0 ,* 1 been closed several times in the 

:?1«BK"|» Pr k“ea,m: a of "hkHrat"^ tortSwinE ££2 I f ft even 

artificially low. A gallon of h - __ fh i ‘ w «.nenie is m t0 be shut over 0De weekend 

fuel for the motorUt costs about ■ montli. &«n xo HJU ■«•»”>■ fact a refinement of the pre- because of Government fears of 
45 p. for a > ar 8 e minority of the vjqqs state of affairs — the chit disturbances. 

The total value of the sub- 14m population. At. least a system — where the signature of _ . ... 

sidies was estimated by the ^rter of the potential 4*m the local National Assembly 2® uW « * n f ,e 2acy 

finance Minister, Mr. Ronnie de ,abou J force 15 unemployed and member was required before a ^n 

Mel in his budeet soeech last therefore a recipient of thedonsDtnent could find a job in 1 ** 1 h ? ve ^‘ e “. t0 . a radical 
November. 8 to be w^Tabou! ration. However, President a public corporation. "Vnw "In 

Rs7bn (£250m) and on those Jayewardene says simply that substantial unemployment, u^s SSivereS should be 
parts of the system where the the nn subsidy wiH auto- however, is likely to remain, S ha ve deLed 

subsidy was mast easily quan- matically disappear with more an d it is equally likely that any i iiirf ,, v^rs iti^i 

fifiiabie. the figure was employment. protest against this continuing “ ™ ^ 

Rs3 2bn. The change in atti- The precise extent of new slal e of affairs will come, as in 

tude towards subsidies by the employment opportunities will 1971, From the student papula- JJJL i f-f i «= i hi 
Jah^wardene regime from that only emerge about now witn tion. Even after the defeat of [q 0 rgani ^higher educatiunlo 

include what are called rural 
universities. There will be one 

' nr two such establishments in 

T ■ . | j * each of the 22 districts into 

8 1 1^ T /"V O • ^ ri which Sri Lanka is administra- 

n liLll I Cd [ } I I LC uvely div,ded 

V W w M A. A VV It is apparent that Govern- 

ment members have complete 
contempt for the lawlessness 

\ i * fld anarchy which they con- 

1^ I n /\ -wr- /^v y»4- ^ sider had virtually taken over 

AX W a 13 S 13 O XL IS JrSSSm SStionand 

1 1 bullying and admit almoat with 

, . . . - ' — pride that student. supporters of 

TRT! TTTfllf -wnrTH nri«» nf tpa inmaw T^nlran K»a in lha Ttniiad Ctara* ruling United National 

THE HIGH world price of tea increase. 

Lankan tea in the United States. 

I ^auiuui iva iu Uic UULLCU UUUCJ, p . . r . |J t u L - . 

is the modern success story of As with the rest of .the agri- the Middle East. Pakistan and wfft” n ShtJ nfS* i hLv .hi 
Sri Lanka. Tea revenue has cultural sector, weather will be South Africa. Britain is no D . v“ , . y consiaer mat uie 
boosted the country’s foreign the main influence on success. longer a major market Storage stuaenlB v,ere creaun s a sick 

exchange reserves to the point A repeat of the drought of 1974 on the elates is adequate but £“ ely l l 2IJLSf, 

where import Hberalisatlon and 1975 is not feared, but the that in Colombo Ls very bad. the 

schemes can be considered and quantity of rain brought by the Most stock comes down from 

loans accepted from abroad north east monsoon of Novem- the hills by truck, only a small Li.! fidence now b eSuU 
with confidence that repay- ber to January or [he south percentage by train. Trucks, JSJ SJeSe dlen? mS 

ments can be met in the crucial west monsoon which lasts from however are in short suddIv 1 .u ■ v ■ 4 “ e n l " \ ajgri . 

«" «» develop- the middle of May »dl late the ajnem wta ^m^o 

But even while mhtnbutios It ls the continuing ioefliL-tent ,.h e S ri Lanka economy, the vo.Do^ jmd althou-h extrem. 
as mud. as oO per ceot or management which is perhaps small number of new trucks in .f meetinS are sti“l held th?v 
fore, ;n trade, (he tea estates doth the hugest and most the transport fieet will lead to i’ e mucK.ore v "ilaot The 
are still to a mess, and pro- soluble barrier to greater pro- bottlenecks as the older ones of iavewardene 

ductum is only now beginning duction. Few local people want nppI i renair j ■ • . 

to pick up again to the high to reverse the nationalisation of . ' . - . : ^ dram,strat ' on fthet f e ' 

point of the mid 1960s. when both' the privaie holdmys and r , Artempls to p] u an fnr ? e ,l f « n make changes m the 
iigur.'s beyond 220m kg were the estates made bv Mrs. futu r e , ar , e n,)w b t‘ ng T d *' ^’ e,fa [ e ? > * em without all«w- 
the norm. In 1077 the figure Bandaranaike’s Government in particularly among the medium- mg ihe Left and the students 
was 208m kg. a welcome revival 1972 and 1975, but many feel l e Y?l grates between 2.000 and to exploit resentment and 
from the previous year's total lhai the two Slate-run. organise- ta here the tea lacks opposition, 

of 196ra kg. This year they tions retained by President The .quality and flavour of tne _ 


Prosper in Sri Lanka with the 


Sri Lanka may be Asia's next 
" Economic Miracle " Country 

Overseas Companies can share in iLs growing prosperity through' 
direct investments and joint ventures with Ceylonese partners. 
A Free Trade Zune and uuud Communications make Sri Lanka 
an excellent base for trade throughout Southern Asia. 

The John Keclls Croup of Companies established in Ceylon 
inn years ago can offer a variety of services — provide unbiased, 
accurate information about market prospects, financing, feasi- 
bility studies, negotiate financial arrangements and clearance 
with Government Agencies, assist with local recruitment and a 
total follow-through of the new enterprise. 

John Keells Limited is a Rupee Public Company and 
operates as Exchange. Tea, Rubber. Coconut and General Produce 
Brokers and has unrivalled knowledge of Industry, Trade and 
Finance in Sri Lanka. 

Included in the John Keells Organisation is the largest 
Travel Group in Sri Lanka through 90% share holdings in 
Mackinnon Mackenzie & Company (Ceylon) Limited and 
Walkers Tours & Travels (Ceylon) Limited. These Companies 
offer a complete service to investing companies and business 
visitors and their facilities include a strategically placed chain 
of hotels and the largest private fieet of air conditioned coaches 
and cars. 

Find new opportunities in Sri Lanka by consulting:— 

John Keells Limited, 

P.O. Box 76, Colombo, Sri Lanka. 

Mackinnon Mackenzie & Co. (Ceylon) Limited. 

P.O. Box 94, Colombo, Sri Lanka. 

Walkers Tours & Travels (Ceylon) Limited, 

P.O. Box 104S, Colombo, Sri Lanka. 

similar Jayewardene are unwieldy and grounds and the strength 
■ unnecessarily bureaucratic. At an “ colour of the .low grounds. 

least, they say, Members of Consequently for the medium- 

Parliament are no ionser so leve] te as the market is very 
concerned with estate adminis- erratic, and alternative crops 
tration as before the elections. such as mulberry and spices 
Specific work now being car- could be more profitable. The 
ried out on the estates and Tea Board Research institute is 
smallholdings includes in- trying to grow Chinese green 
creased subsidy payments and tea as one experiment, and in 
the reopening uf tea factories another project four Canadian 
which bad been shut down due development experts arrive in 
to lack of spare parts. The sub- June to work on a tea rehahili- 
sidy has increased ■ from R4750 tatian master plan. In another 
an acre to R6000 (about £200). rehabilitation project at Mask- 
The complaint of poor quality Uyea Oya ,the World Bank is 
which the Sri Lanka crop began preparing a 40,000-acre pilot 
to acquire remains but improve- project which could cost 
ments are being made. Part of $US90in. 

this was because, with the The legacy of compensation 
soaring world price^ quality was over f r0 m the natinnalisa- 
lgnored in the pursuit of quan- t ian remains. Negotiations have 
m* Now that the price has sliH not startecI on the mpee 
moderated somewhat, while estates, but payments are con- 
labour cos- s have increased, Sn tinui to* schedule on the 
Unka will on * r again have tn gterlmg estales and the Govern . 

ouai tv effort - to improve mem ^ up with interest 

■Other areas fnr improvement * nd * d ° d "^ I p r * ti< ? n 

are the various transport stages Shareholders in 

from the bush on the estate to 

the traditional markets for Sri S.H. 




Sri Liiika is r.ow »n InHnuftssaT 
Cei«w for is»nferrntfei and JWefiajSi Tf» 
Bandanruitc Conference HjH ( 8MICtfl L 
Colombo which. recmd«. tta n 
adequately catered to the re qBitemena of 
a tnulti-raclat community of dgirj fttn to a 
non-ali i!ncd Siimnnt Conference, boisti .- 
the muse s*'phisncat«l a«oninMW»*»qn 
and equipment, rapablc of catftintto 
deiejarions of from j 0 to IdPO mcrarfd* 
Thi< indud.y >imuiiaiiwuj translation ' ^ 

lac 1 1 it ic. in sc^er: Uniuapa. ..T. 

S* kuw anJ confer in 2?** 

whole salubrious climate tie »r hotel . l 
a.-^omraodatiun and facihnn a: :e»ion*Kt 
prices, arc the pert>i.i aiirticne to 
LontcidiLC nn|i>ir. 


Mr. P. ‘ ’■ .■*• fVrnau.s.'i 



t*o. Lake Cre*.ent Cnlombo 2 

Sri Lanka Tel : 32995 

P.O. Box FW 

Telex: AB-TRUST 

Cables: ^erendib 



(Consolidated Exports) 

Is your best partner for 


* Experience in exporting 

doinc % i- r 

Trade contacts all over the world 

Security of a State Sponsored . I*” ;‘ ! ^ 

Availability of resources in FTZ - 
Experienced management 
Turnover £21m. in 1977 
Research facilities for feasibility studies 

"68/70 York St., Colomlra L 
Phone: 26981 Cable: Congo lexpo 
Telex: 1164 and 1280 Colombo 

Engineersn Constructors 
Manufacturers □ Merchaits 

samueCsons a company umtteo 

». O- lex 44 Colombo 1 i Toltphon* 32341 -4 Talox 1 2Bi 


a name that's synonymous 
with progressive packaging 
in Sri Lanka 

Our Products and Sen ices Include: 


Polyethylene film 


Poly shrink film, pallet hoods, etc. 


Packaging service for strapping, palletising, etc. 


Contract packaging service (to be launched shortly) 

To ensure that you get the optimum value lor y our packaging cost*, 
otffe your suppliers to consult:— . '' ' 



P.O. BOX 1301 
Cable: POL1TIPE 



* i h 

■ -Tinancial Times Wednesday May 31 1973 



Japanese case study: By CHARLES SMITH In Tokyo 

4 ; 1? 



built what was the world's 
largest- ship— at the beginning 
nf the T980s—a 130,000 dwt 
tanker which became the first 
of a new generation ©f giant 
crude oil carriers (VLCCsi. 
Eighteen years later Sasebo 
has become the candidate for 
what could be an almost 
unprecedented rescue opera- 
tion, conceivably involving the 
direct use of government funds 
and almost certainly involving 
the steering of defence and 
other orders In its direction. 

The Japanese Government is 
not in the habit of rescuing 
lame ducks— though Japanese 
banks and trading companies 
have been known to sink 
fairly substantial funds into 
rescue operations on behalf nf 
basically unviable companies. 
One reason why Sasebo may get 
special treatment is that its 
bankers and shareholders have 
failed (after two months of dis- 
cussions! to reach the usual 
behind-the-scenes agreement on 
who should shoulder what pro- 
portion of the burden or keep- 
ing the company going. The 
other reason is that Sasebo is, 
by any standards, a political hot 

Sasebo, or SSK as it is 
usually known in Tokyo (short 
for the company's full name of 
Sasebo Sanpaku Kogyo) is not. 
and never has been, a typical 
Japanese shipbuilding company. 
The company was founded, after 
to.’ war by a group of inves- 
i-c- in the south-western - 
Jopanete city of Sasebo, but 
th* % dockyards and other instal- 
l:i'ton$ which made SSK a 
l-.uii'V of the postwar growth 
of its industry - were there long 
h 'fore. They were built by the 
Japanese Imperial Navy during 
the 1930s when the nation was 
settine out tn equip itself with 

the world's largest and most 
powerful battleships. SSK's 
Number Four dry dock, which 
remained the largest in ihe 
world from the late 1930s until 
the early 1970s (when cum- 
panics like Mitsubishi heaw 
industries and Hitachi Zosen 
completed a new generation of 
docks for building ultra-large 
tankers or ULCC^ was the 
birthplace of the Musashi. one 
of the two biggest vessels in rhe 
Imperial Navy during World 
War IL 

Sasebo’s position as heir to 
the navy’s shipbuilding tradi- 
tions gave it an easy lead over 
other, shipbuilders in the early 
1960s. The company was strong 
enough, and proud enongh. to 
withstand takeover bids by 
heavy- industry- conglomerate's 
(unlike another former naval 
dock yard, at Kure on the 
inland sea. which was absorbed 
by Ishikawajima Heavy Indus- 
tries). The policy of going it 
alone however posed problems 
which began to loom large 
when the oil crisis undermined 
the foundations of Japan’s 
shipbuilding prosperity from 
1973 onwards. One weakness 
was, and is. that Sasebo is 80 
per cent dependent on ship- 
building, whereas other big 
Japanese shipbuilders tend to 
be diversified heavy industry 
companies with more than half 
their turnover in other sectors. 

A second major weakness is that 
Sasebo is -not a member of any 
of the big industrial and 
commercial groupings which 
might have helped it during its 
present difficulties. 


already been damaged in 1971 
by the first revaluation of the 

From around 1972 onwards 
* ace d another problem, 
that of deciding whether or not 
to follow other big Japanese 
shipyards into the ULCC era. 
SSK hesitated while competi- 
tors were going ahead with 
their investment plans. Then 
it decided, on the eve of the nil 
crisis, to acquire land on the 
opposite • side nf Sasebo har- 
bour on. which to build a 
600.000 ton dwt dockyard. The 
acquisition process took time, 
partly because a portion nf the 
land was held by the Jananese 
Self-Defence Aqency. . By the 
time the land had been 
acquired and a compensation 
deal had been, worked out with 
local fishermen i* was clear that 
there was no point in adding 
further to the alreadv excessive 
tanker building capacity' in 
Japan. The Droject was cancel- 
led. but Sasebo has yet to sell 
the land and has little prospect 
of reconniQg itself for reclama- 
tion work carried out before 

The TT Bulford was the largest oil tanker under the British flag when delivered by Sasebo 

to Blandford Shipping in 1966. 


Sasebo's peak year in terms 
of orders was 1972 when the 
company had some 21 years of 
work on its bonks, including no 
fewer than 15 of the 250.000 to 
270.0QQ dwt VL.CC tankers in 
which it specialised. Its finan- 
cial situation, however, had 

The fat stock hook of 1972 
kept SSK operating at or near 
full capacity until around 
1975. From then on things 
deteriorated steadily. This 
year's turnover is expected lo 
reach around Y50bn (about 
£l22m) or less than 60 per. cent 
of the peak level of 197,5-T-and 
it would be lower still if SSK's 
ship repair business had not 
held up relatively well after 
orders for new ships stopped 
coming in. 

SSK has three orders on its 
books for roll-on roll-off vessels 
one of which is already at the 
fitting stage whHe another is 
half way through the hull 

assembly stage in Number Four 
dockyard. The only other new 
ship order is for a patrol vessel 
lor the Maritime Safety Agency, 
one nf the defence-related 
Japanese Government agencies 
which have always steered work 
in Sasebo's direction — find will 
have to do so ■ even more in 
future if the company is to 

Sasebo began to Face an acule 
financial squeeze from about 
March of this year and has con- 
tinued to exist from hand to 
-mouth since that time, with its 
finance department performing 
miracles of ingenuity to meet 
each month's payments. It was 
also apparent by the start of the 
year that the company would 
have to reduce its* labour force 
if it were to survive, but this 
posed the problem of liow tn 
raise the YSbn needed to pay- 
special ‘ retirement allowances. 
So far 1.600 workers (of the 
original Sasebo labour force of 
6.600) have been persuaded tn 

go with no more than the pro- 
mise. of retirement allowances 
once a rescue and reconstruction 
plan has been worked out and 
.agreed by shareholders. 

Progress towards working -it 
out has - been slow because 
Sasebo has four main share- 
holders tand two main banks), 
none n£ which . seem to be 
ab’e to agree nn where- the 
responsibility lies for putting 
the company hack on its 
feet. The biggest of the four 
is Kiirushima Dockyard, a pri- 
vate 1 y -owned shipbuilding and 
transport conglomerate, whose 
president hoped to..become chief 
executive of . SSK two years ago 
when 'his company .acquired its 
present shareholding, but ..was 
blacked by 1 other shareholders. 
Next, comes Nippon Kokan. 
Japan’s number two steelmaker 
arid itself a leading shipbuilder. 
NKK nominated the president of 
Sasebo two years ago arid might 
have been expected to play a 
leading part in helping the com- 

pany out of Its difficulties — but 
for the fact that its own finan- 
cial situation is relatively tight 
The other two major share- 
holders. Nippon Steel, and 
NUsho-Iwai (Japan's number 
six general trading company) 
are not prepared to carry the 
full burden by rescuing SSK if 
Kurushima and NKK decline to 
play their part. 

If SSK were allowed to fail, 
the effect on the economy 
of Sasebo City would be 
catastrophic. Sasebo was a 
village when the navy chose it 
as the site of its dock complex 
70 years ago. It has remained 
essentially a one-industry', if not 
one-company community, with 
33,000 of the 252.000 inhabitants 
directly dependent on SSK 
itself in 'the sense of being 
either SSK employees or their 
dependents. In terms of money. 
SSK accounts for some 51 per 
cent of the industrial output 
of Sasebo City with a handful 

of . small shipbuilders.- some of 
them dependent- on SSK. 
accounting fur a further 
18 per cent. Sasebo City's only 
assets apart from shipbuilding 
are a small amount of fishing, 
a few pottery works, and a U.S. 
naval base which contributes 
marginally to the economy but 
depends on SSK for the refit- 
ting. of- incoming vessels. 

Having to tell the Americans 
(who are after all there to 
defend Japan) that their ships 
can no longer be- repaired, is 
one' disagreeable prospect for 
the Government if the company 
is allowed tn go bankrupt. The 
second prospect is that of creat- 
ing economic chaos in a 
medium-sized town whose 
municipal assembly happens tn 
be divided almost 50-50 between 
supporter? of the ruling Liberal- 
Democratic Party and the 

.Because these' prospects are 
fell lo be unacceptable. Mr. 
Takeo Fukuda. . the Prime 
Minister, has told the economics 
ministers in his cabinet that 
SSK must not be allowed to fail. 
It is not clear whether this 
means that Mr.- Fukuda has 
resigned himself to a situation 
in which the Government will 
have to slep in with direct finan- 
cial assistance to the company. 
So far the'- Government has con- 
fined itself m instructing one 
of Sasebo’s main bankers. Dal- 
Ichi Kangyo Bank, to extend an 
emergency Y500m Joan to help 
SSK- pay. short term debts. 
What Mr. Fukuda does seem tn 
have decided is that SSK will 
only he able to survive in the 
long run with the help of. 
Government contracts — which 
will accordingly have to be 

The contracts will be for de- 
fence equipment including the 
building and repair of naval 

vessels which accounted for a 
very small portion of total 
turnover in the boom days be- 
fore ihe oil crisis, bur could rise 
to 20 per cent or new shipbuild- 
ing business id future. SSK also 
expects to set the job of repair- 
ing the Mutsu. the ill-fated 
nuclear-powered ship which ex- 
perienced reactor trouble on her 
maiden voyage- four- years ago 
and has been lying up in her 
home port in northern Japan 
ever since because of opposition 
from local environmentalists to 
the sran of repair work. Other 
specialised fields on which SSK's 
rescuers or would-be rescuers 
have their eye -include the con- 
struction of liquefied natural 
gas and other gas carriers iind 
the construction of steel struc- 
tures for future -high speed 
railway and bridge projects 
likely to be included in the 
Government's public works 

If the reconstruction plan is 
implemented alone something 
like these lines SSK may be 
dble to struggle bark to its 
peak opera tins levels of four 
year® agn by 19S2. It will be a 
very different SSK from the 
company which ted Jinan's ship- 
builders into the giant tanker 
era in the early Iflfifls — not 
least because the company will 
.have a far higher decree of 
dependence than any other 
Japanese shipbuilder upnn gov- 
ernment mn tracts. Sasebo 
municinal officials, who have 
done their utmost in recent 
months to get the Government 
In take an interest in SSK*s 
pmbjpms. say there is nn rea- 
son why (hat should constitute 
a precedent for Healing with 
the next special case that crops 
up in the shipbuilding or 
engineering industries tor in 
any other recession-struck 
industry for that matter). 
Others are not so sure. 

Of course it is inconvenient bridge, though we ought to be luminaries of the City, 
for the authorities- to base these able to do so. Perhaps this Is The experiments in. so called 
planes at Brize Norton, but what because our view of the possible “industrial democracy" in 
is inconvenience for the RAF or is unduly hedged about bv nationalised industries are a 

U. f- ^ 

Letters to the Editor 

Assessment of 

domestic rates 

From tire secretary The Rating ,he *--SAF wncn compared with present concepts of reporting and hollow sham. In no case are 
and I'af notion Association "hat is at stake (both for NATO our assumptions of the nature th e “worker directors” elected 
Sir.— I welcome the comments and the P<? n Pl® affected)? of income and capital. *>>' work force. In most 

raised bv Roland Freeman iMav 1 find difficult to comnre- Research must still go on. arid cases they .are just union hacks. 

17) on {he current rating scene hend fs thp attitu de of men who we must all find more satisfac- Bryan Cassidy. ' 

anri appreciate his concern for 1=n o re l h *> r own knnwledse and tion in contributing to the ulti- Member of the Greater London 
the future of local democracy cx Pentee >n a situation where mute bridge than in quarrelling council f°r Hendon North, 
and accountability in relation to convenience outweighs danaer about the nature of the indi- Members Lobby. 

the one independent tax source ar, d Intolerable conditions Tor vidual stepping stones, 
currents’* available to local 0,hers - People do appreciate the R. S. Waldron, 
authorities. need for the West to he pre- United City Merchants, 

1 do not however accept his P ar *d. but the? are also entitled UCJf Hotwe, 
argument that my critique on his 0 a profess onai approach to the £5. Swallow Place 
Bow Group pamphlet (May S) ,0 S?' ,0n these ? a6 * s - Pnnces Street, \V1. 

was based on the incorrect .. * bout tb f-5 lod £® of 

assumption that Peter Shore the .Open Government ”? To re- 
F.nvlronnrent Secretary, had J c, hate Green ham Common Air- 
abandoned the concept af capita) , "hen alternatives are avail- 
value rating for dwellings in his aft of irrespnn- 

■n nouncement that the next **™-ity -VATO will get its run- 

a ssumpimn that Peter More tne y*" 6 " s *u rr 

Environment Secretary, had n _ WOfKCrS Oil 

_ _ _ . __ the Board 

revaluation would take place in ^' a >' whatever the cost. 

19*2 I. B. Pepper.. 

From .Mr. Bryan Cassidy 

The County Hall. SE1. 

The funding 

From Mr. JV. .Moore. 

Sir. — Recent correspondents 
have observed that. we are bank 
in .the* familiar vicious circle 
whereby the authorities cannot 

__ sell Gilts to ibe institutions 

..... w because of money supply fears 

* ^p a ?£ th iamnMet and the Ioa S er that *1* situation 
S' KJS? «« P th! y » f continues, the worse the money 

— rJiiwjzxdx x 

Accounting and 

1st Uihitm,. it would be more 
tion of tne Continental stern rifinctritp! jrA tn eppk wavs of har- 

up tn date periodically, the *■»**•*** of a two-tier board. There has the forces currently at 

«mem< will Increasingly from .Mr. B. Waldron been some considerable corre- work ^ niar | ce ( . 

unfair and anomalous fn Sir.— No doubt Professor spondence in your columns of n j s indeed disappointing that 

(••’■’ration. Myddleton is right (May 23) in late 3bout the need Tor more .. lP „ ons 0 r 19 7 * iCPm not to 

v '-.Tfnc!!y. it will he based on seeking some way in which to non-executive directors to control . vp J)f , en \ e3rnX an j that in 
the existing rental basis. This reflect in accounting terms the more effectively day-to-day l( . { r j, e>i arc , being pushed up 

a ::-«n will be widely regretted f ; »)| j n (he real value of money, management. This control needs t0 ‘j ncreas j n g; v higher levels 
i.i- ciir.ivded by Mr. Freeman) Yet in attempt to do so in a state- to he exercised in the inlercsts jj' ite j^p fact that high interest 
fin- thr assessments wilt con- men! expressed in money is so no; only of the employees but rates conl |j ct w j t j, p^er aims of 
i io to •»:? operated on a very complex as to defeat understand- of ihe shareholders. economic policy and in anv case 

t»:i"--,w hjsr of open market j n r, by laymen. He says that cur- Undoubtedly there will ne w j,j, 0Ul supporting measures 
t'-ntei transactions The tax will rent cost accounting has nothing howls of protest from interested w m n(l , j, ave the desired effect, 
rate more fairly and effec- t o do with inflation, and 1 am bodies such as the Institute o« hf^sible siosj which I sug- 

:f it .■> founded on ihe well aware that this argument Directors but it is evident that ., e s, dwenes closer a Hem ion Ts 
r..Jr«.-«- i-.hivh predominate* tn has bc^n used by others and in many British companies board - lssue w v tender. Given Ihe 
-r^riirntiai market, namely vill be used .igain. Yet we all appu'ntment^ are^^madp^noj^ on lt , vels 0 j i' nsl itutirnial liquidity 

There are three significant W. hutgsland Granac. 
point.-. In that announcement. Andover Road .Newbury. Berks. 
Firstly, ihe revaluation wilt in 
faci ’.ifce place In 19S2. This 
statement can he given a general 
welcome nn ihe grounds Hi3i if . _ . 

»hr base of any tax is nut hroucht inf Isiflftn 
..F. 1 v the *IIIiaUUII 

IL’ nrirry. 

or even 
the price. 


1 3 . . The battle of 



knnu- ihai Wit noi been' for the lia-ds ' of merit tufas' a ^ o{ X1 WUH1 t 
l matiy. the Government has inflation there would have been reward for skill a. playing board £j 5 QQ ra on .b e basis | hat 
^,t«r-Ui’ j its commitment to n n Sandiiand.s report, no Morpeth room political games, roo often w ' ld hp accepte 'd 0l t i 
rro'tr.1 ■J 1 ' 1 *’ Mtinc when the in ec and no Hyde guide- these came* J r f. submitted, from the highest 

«o 'Ti.-3t climate more lines. ^ W d d own to the level' at which the 

roue. The only reason why The What we really need to do, enujlmees equally. j SJ!Ue was exhausted, would at 

net legislation^ has not however, is to endearour to pro- The weaknesses “■ “J* i eas t break the impasse. Il might 

been introduced in tite ■ n resent dure some understandable mem s propnia i relaje io ne be argued that this could Involve 
se« s .-n rtf rsrbsmeni has been nw ,|, tld ,»r arcmintmc for changes way in , smien empm** son , e ver} . eJf p eils i, ' 

•the ti’-teVihnod ilwt a in ihe value of what we earn lor directory wHI be appennteo )t cou ', d scarce | y pro ve more 

vote cannot be assured This l05C ) 3n( j have (nr owe). CCA TTiese shoulfi be costly than the present policy and 

»i *n ; fi.'.int f.ii’l seem* I" have W!I , „ bran* anempt and in fact of the «nrk f orre n ot jv si ^ union qui , p considerably less 

esc.iprri I hr nonce uf a numbe. pn ^ v ,i,| v er i com passed inn large a members. The should a 50 . The crucial point is that the 

nf r.imnienutor*. including Mr. field for mstimt In problem is self-feeding in both 

F rerin;in 
iliB-ia-i ! H’ti 

huru Street. S" • 

crossing any Stream the opposite No one wants to ^eemp.oyre ^ons and bV7aK 'the log 
hank can nnl> hr reached by step- directors w ho ar • . " j atn would have cumulative 

P-»P f™» j”h“' d rorThe »«•«*• 

tram similar lo that N. Moore, 
existed in the past for Reiiby. 

discovered the some of the silver haired Bridge Green. Sussex. 


cm-dani purvha»inj power. Ci.A open up u 
and Hule are eu.-h of them pro- boys' gravy 
cress points of this sort- We which existi 

cress points 
have not >el 

A change of career for the “good life’ 

Fr-wt Mr. J. Soiirh. 

This has been renovated for would give broad scope for the 
- - - r ' t p^fvwi nlus nine month* of our juMlfication of tax-defluctioie 

s i r.-Two years |i- o r ^!, sne ^ Jj.y^uhour and current value expenses. Any profit made will 
from an export mjrkcun, re- , linri ntn.iiio. At an annual therefore he spent by the 


many:-;' disappointment 
■ new. way of life is 
no .longer appreciate 
they are so frequenr) 
j s. .-long weekends and 

- , , 111.-1U - - ' ----- , .!Nu-n.„ morning lie-ins. The 

take off which jue? on .or houri • . . received after tax Tree. In view of the Landlord temptation is- very great in’il be a prehide .tn - the u-nrkin- full lime Tor British and Tenant Act the properly will Socialist Britain. to do nothing. • 

•.hatli-rin: evpi-rimc*’ i" lOtiow. . Fven savings on such have io remain empty and also Bv the way. if-jrou are con- 
ami thi> »iiuld u«» *»n day after , on<es travel, my common law wire and 1 must sidorins tearing British industry 

ijy and. when necrssaiv. „ , nd ' .| (f -,hes amounted to remain unmarried, but the j s worth rememfiering th.v 

after nicht There »* n0 L nre C "»han El .(WO f er annuin potential for tax-free gum should you should leave your company 

ment when it comes to the in- 1 nre . laS intome (assuming a justify this in mid-summer after youy annual 

tolerahk n"i-e and dancer' to we J JJJ,* , |aV rJ vc of 50 per A major pan of our current company holidjSj.spd when your 

population nr a town at the end ^ n effort and that. of all our friends taxable income For' the financial 

nf a runway versus the con- , „r Mr Healeys latest goes into lax avoidance. Export- year approximates . your lax 

veittetiec of u few. . «-hich continues the left- ins antiques for instance can be coding. to the run”-av is vir* “ uu * e ' <li(lin^ enirepre- a pari -time occupation which Finally, to a^pid'.'/sfhile re- 
rtiaUy restricted to ihe went a ' n d middle man- protides scope for avoiding the claiming you r eninloyment insur- 

whtfrt* (lie night palh I- over nvimai p m i s ht give socialist marginal lax rate. .Mr, ance) interviews.' with British 

huspitaK sehnuls and hmno. Il , r ] f) ,ddle managers Healey's latest relaxations on industry for unwanted jobs, you 

is nut Ihe ciliftMiv uf Ntfwimry 10 . .o.,, . sequel in our capital cams tax liability arc not should ask for a career change: 

who decide planning milsev " particularlv relevant as alt Con- M v request to study spcioJosjcal 

ruund (hK hasp. It .s the linvrni- S«na i te- mi , r tax tinental dealer? will write » aspects of left-wing' motivation 
i ment. anil they slmnld adiuil ‘.t ,„ un ihs- work on the receipt for whatever amounl ir at half, my previous salary wa 

,o an- tax free and the balance is pay- programmed into the PER com' 

lo be in ca*h. . pqter with negative result, 

in a Another nf our ideas is in start John Smith. 

140 000 a company publishing books on Georqe House 

-n ,M»ni D 4 iu u 3 mortgage.! - antiques, an enterprise which Petuaprtb,-S.uMe», 
contemplated. (dU * ,er 


Polling day in HamlHon by- 
election i result expected about 
1 ajn. Thursday). 

North Atlantic Treaty Organisa- 
tion (NATO) two-day summit 
ends. Washington. 

Third of seven fortnightly 
Indian gold auctions. 

Public inquiry opens at County 
Hall, SE1, into proposed fourth 
passenger terminal at. Heathrow 

United Nations special session 
w disarmament continues, New 

Three-day conference opens in 
Geneva under auspices of Inter- 
national Civil Aviation Organise- 
tiop'to raise new funds for civil 
aviation development in Africa. 

Chinese agricultural mechanisa- 
tion mission continues UK tour. - 

Today’s Events 

Duke of Edinburgh visits 
Scottish Design Centre, Glasgow, 
and afterwards presents 1978 
Design Council Awards and Scot- 
tish Designer of the Year Award 
at the City Chambers. 

Prince of Wales attends concert 
in Scarborough to celebrate 25»'h 
anniversary of Captain Cook’s 

London Chamber of Commerce 
seminar on Computers and the 
SmaHer ''nmpany, ttfl. Cannon 
Street, EC4. 

Royal Bath and West Show 
opens Shepton Mattel (untlj June 


Lonrho (first quarter figures). 

Mar ley (half-year). Reed Inter- 
nalio'nal (full year). 


BICC. 21, Bloomsbury Street, 
VC. 12. Bourne and Hollings- 
worth, 116-118. Oxford Street W. 
12.15. East Rand Consolidated, 
254*5, City Road, EC. 11.30. 
Exploration, Cavalry Club. Picca- 
dilly. w, 12. Holt (Joseph), 
M»nc4**s**r, 12 Hn-'V-n < *f»ns, 

Huddersfield. J2. Miller (Stanley). 
Newcastle upon Tyne. 12. Moss 
Bros., 20-21, King Street. W.C.. 
11.30. Myson. Qnagl inn's, SW, 12. 
Richards and Walllngton. Birming- 
ham. 12. Tilbury Contracting. -St. 
Ermin's Hotel,. SW. 12. .Travis 

and .Arnold. Northampton, 12. 
Weeks Associated. Hull, 12. . 

Samuel Pepys commemorative 
senice. St. Clave, Hart Street, 
ECS. noon. 

City and Guilds of London 
Institute centenary service, SL 
Paul's Cathedral, 6 pm. 


University of Massachusetts* 
Chorale. St. Lawrence Jewry next 
Guildhall. EC2. 1 pm. 

Forest Philharmonic Orchestra 
and Philharmonia Chorus, con- 
ductor Frank Shipway, soloists 
Elizabeth Harwood (soprano) and 
Jean Bailey (contralto), perform 
Mahler's Symphony No. 2 in C 
minor f Resurrection ), Royal 
Festival Hall, SEl. 8 pm. 

v - - * 

„ ,1 

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Northern Foods soars to £10.9m at midway 

PROFIT growth of Northern Foods 
continues unabated, and for the 
six months to March 31, 1978 the 
pre-tax figure turns in at £10.S7m 
compared with £7.04 m. 

. However, the effect of the com- 
pletion of the transitional steps 
relating to UK membership of the 
EEC has resulted in a change of 
timing in the receipt of milk 
margin awards. The result of 
this has been to bring Into the 
first half year approximately 
£1.4m of income which would 
otherwise have fallen into the 
second half. 

Furthermore, as a consequence 
of the recent disposal to the Bank 
of Ireland of the finance subsidi- 
ary. British Credit Tnist. which 
realised £Ilm cash, the results 
exclude the profit of that com- 
pany, which amounted to £1.1 Mm. 
(10. 549m for the six months to 
March 31. 1977»-but include a 
dividend receivable of £800,000. 

Earnings of the company, which 
recently made an agreed bid for 
Pork Farms, are shown to have 
risen to 5.55p l3.19p adjusted) per 
25p share. The net interim divi- 
dend is effectively raised from 
0.714p to 1.5p and the directors 
forecast a 255p final. Last year a 
final payment equivalent to 1.5p 
was made from taxable profits of 


Brocks Group 
Clarke Moriand 
Punlop Holdings 


Ellerman Line* 
French Kier 
Grant Bros. 
tOM Enterprises 
Kay sc r Bonder 


Pag? Col, p Company 

32 4 Laing (John) 

30 6 . Leaderflush 

34 6 Minster Inscc. 

30 1 N orthern Foods 

34 6 Scott (james) 

3 3 4 i Scottish Eq uitable 

30 4 sw an Hunter 

32 5 Warnford Invs. 

30 1 iWettcm 

Page Col. 
33 4 

Sis months 
I0T7-T8 1 970-77 


Trading profit 


Tnfwrat - 

Invest Income 

-Shore of assoc. - 

BCT •’ividend* . 

SC" *rofll 

TlT 4,7fP 

Minorities * 7 

Ex Tra ordinary credit M +S7 

Attrfbntable O-I^l 3 -5*i 

Ordinary dlvs j 

Rriahto-il ... • e.X.l 1607 

- British Credit TmsL t Debit 

See Lex 

to profit 

A continued improvement in 
trading from its hosiery business 
resulted in a pre-tax profit or 
£764.000 for 1977 at Kayser 
Bondor, a subsidiary of Cour- 
tauids, compared with a £103,000 
deficit last time. Turnover was 
marginally down from £15. 99m to 
£1 5.72m. 

However, the directors warn 
that the lingerie and foundation 
wear sections did not fulfil earlier 
promise due to pressure on prices 
and these conditions continue into 
the current year. 

After tax of £452.000 (£290.000 
credit), earnings are given at 4.7p 
(2.5p) per 25p share. Hie divi- 
dend is raised from 1.74p to the 
maximum permitted 1.97p net. 
Retained profit emerged at 
£162.000 (£48.000j. 

52% to 
peak £1.6m 

PRE-TAX profits of East Midland 
Allied Press .were up by 52 per- 
cent from £1.07m to a peak £1.62m 
for the 52 weeks to April 1. 1978, 
and were well up on the forecast 
made at the time of the rights 
issue last November, of not less 
than £1.35m. 

Turnover for the period was 
ahead from £14.8m to £18.7m, an 
increase of 26 per cent At half- 
way profit was £0.Sm against 

The increase in profit came 
from newspaper, magazine and 
retail divisions and from lower 
interest charges on bank borrow- 
ings, directors state. The contract 
printing division suffered a small 
loss due to heavy non-recurring 
costs in connection with the instal- 
lation of the new press. 

Current sales of both evening 
papers at Kettering and Peter- 
borough. and a majority of the 
weeklies, have increased on last 
year’s figures, they add, and 
advertising volumes continue to 

National publications continue 
buoyant and two more publica- 
tions, Sporting Gun and Trout 
Fisherman, have been converted 
to monthly magazines. 

The group’s retail business 
achieved increased profits, say the 
directors, and progress continues 
to be made in filling the unutilised 
capacity of the Kettering and 
Peterborough presses. 

1977*78 1976-77 

£ I 

Turn fiver lS.799.fl4 14.803.973 

Trading profit 2,134.961 1,8411.753 

Depreclaiiont 43S.S54 392.603 

Interest 1K.016 VfkfTt 

Investment Income ... Lilt 3.262 

Profit before tax 1AZL192 1A67ACT 

Tax 224.427 106.328 

Net profit 1 ,398.765 >61. SIX 

Preferred dividend 4.M2 6.012 

Interim dividend - 10S.989 S3.3W 

Final dividend 1 88.636 108.168 

Retained 1.1U.MS 763^47 

t Net of investment grant of 0328 

On capital increased by tbe 
rights issue stated earnings per 
25p share .are up -from 13.3p .to 

ISJp and the dividend is stepped 
up to 3.G0525P (2.8847a pi net, 
with Treasury consent, with a final 
payment of 2.00$05p as forecast- 

Also proposed is a scrip issue 
of three "A" ordinary shares for 
every four ordinary or A 
ordinary shares. 

• comment 

Pre-tax profits at East Midland 
Allied Press are up 52 per cent 
and far exceed the company s own 
forecast. This is due to better 
than expected growth in provin- 
cial newspapers, magazines and 
retailing, which all helped 
cushion anticipated losses from 
the contract printing division. 
Magazines led the way. despite a 
drop in sales of both Motor 
Cycle News and Angling News, 
and the £960,860 (£630,928) profit 
before tax here was largely due 
to the boom in advertising. Pro- 
vincial newspapers contributed 
£457,000. an increase of 126 per 
cent, and with newsprint and 
wages’ costs contained over the 
last year, this operation seems to 
have recovered from tbe six 
month Kettering strike. The 
most interesting developments, 
however, are in contract printing 
where the £2Jm investment in 
plant and machinery is now com- 
plete. Although this showed a 
loss of more than £10,000 in the 
year just ended, compared with a 
surplus of £241,580 previously, 
there should be a substantial 
turn round once more contracts 
are won for the new Commander 
magazine press. Acquisitions 
now seem likely in the expanding 
retail newsagents’ side. At 90p 
the shares still have potential and 
standing on a p/e of 48 yield 
6.3 per cent 

Advance at 

FROM TURNOVER of £2.328,449, 
against £2.077.976 previously, tax- 
able profit of Warnford invest- 
ments advanced from £1.536,488 
to £1,654,379 in the December 25, 
1977, year. 

Alter UK tax of £775,058 
(£726,296), associate company tax 
of £36,255 (£46,542>. overseas tax 
of £7,338 (£6,438) and minority in- 

terests. attributable profit emerged 
at £835,485 (1756^77). 

Earnings per 20p share are 
shown at S.7p compared with 
T^ap, and the .final dividend of 
«SG78p lifts the total from 
4.85633 17 p net to &9459p to CQtn- 
■ply with the shortfall require- 
ments relating to close companies. 

Grant Bros, 
lower at 

PROFITS OF Grant Bros, depart- 
mental stores retailing - concern, 
fell from £147.106 to £110592 for 
the year to January 28, 1978, sub- 
ject to tax of. £62^18 (£87,883). 
The group achieved, a peak 
£272,566 for the 1973-74 year. 

At tbe Interim stage the group 
incurred losses of £60.672 
(£12,041). which was subject to a 
tax credit of £26,788 (£6,262). 

Turnover for the year rose from 
£6B3m to £7.71m and included 
VAT 10.36m (f0-33m) and lease 
department sales £1.26 m (£0.99m). 

Earnings per 25p share fell 
From 4J24p to 3.07p and tbe divi- 
dend is maintained at 3-882 p with 
an unchanged net final payment 
of 2.362p. 

1977-R 1976-77 

£ £ 

Turnover - 7,709.313 6.834. 149 

Pre-tax profit UMtt lflJU* 

Tax - 83,318 S7.SS3 

Net profit - 48*474 58.323 

pays 0.33p 

FOLLOWING A tnraround from a 
loss of £18,711 to a £20,110 surplus 
at midway, Leaderflush (Hold- 
ings). a manufacturer of Bush 
doors, further improved in the 
second half to finish 1977 with a 
pre-tax profit of £120,237, com- 
pared with a £132,715 deficit for 

Tbe. directors say the liquidity 
of tbe company's resources has 
greatly improved and with a 
healthy .order book, they view 
future trading prospects with 
some confidence. 

The company is returning to the 
dividend list with a recommenda- 
tion of 0.33p oe-t, from stated 
earnings of 6J7p (2.74p loss)— the 
last payment was a 0 .325p Interim 
in respect of 1975. 

Turnover for 1977 was £3-61 m, 
compered with £L94m which 
included £0J4m from the 
Pontefract operation dosed early 
in 1977. After tax of £3,400 (nil) 
and an extraordinary credit of 
£35,759 (nil), attributable profit 
emerged at £152,596 (£132,715 
- loss). 

Financial Times Wednesday ^ *** . ':. 

Swan Hunter fl.rSm 
first half fall 

THE DWEOTKS «r S*ail Hun(pr 

December 4J4p (7.41p) and ».47p toOtf* 

down from -l*-** JJJ re more the same items. • • ; 

and P*®-*®*. p from ja.S4m to SimN* December 51. UK? : *.4h1. 
than halved [ro deild in aspect of the sbf month 

in me .1 «P- £« 

repairing nwus»a Riving shipbuilding . awMaranw 

orated during 1 ?V,?ki )00 by the verted in Mftrf* Shipbuilders aa 
rise to a Joss j„ this July 1- 19"- Tile aaratt.* ft* 

groitp’s UK subsidian ile R dividwMfi mrUidans johfet 

sector. The ^irict/ms ,^ r j n amounted to fljQ.OW and 

£l.lin . loss t«, v-c taken t hb wiH bn Indwjed in &*<tno. 

»nd U w-ulm-nw 

»“rr "> W* «*■ 

able, tiiey ajjB, or b “!| dC 5h'o arenunu to Jmw, », 

_ A has been jqt? reference was made to the 

of ctmtpensa- profitable nale after ft* * <j*te of 
°- f l *^ubVidiaries which £*■„ 32.000 tonnes deadwetetat pro- 
SSJt, Shipbuilders O" durf tanker*. The talMnKtf ^ 

jSSr^SO 1977 But the directors in pollan, and the fluctomns ta 

Ju U that nn«l the full amount Has the sterling— L S. dollar _rite 

&?&*£**«* until, the Xf r s„g* ite tot nine moath, 
p?SbIeu2 in the shipreoiunns resulted In a leas on exchua 
husiaess have been resolved, they, £450.000. 
and tbe group's adviscra. ar ® ^ There was an ^? tr ® or 5S? 
the opinion that it would 7»ot be oK ^ t ^ the peri od^Mno^tag 
appropriate or opportune to pro- £209.000 which v-ompriwd a 
ceed with the groups ” ! « ,n * tru f: profit of £885,000 on sate of find 
S the directore mtend to ^» ts , (Wailsend Dock*); 

transfer the coni mu mg businesses loss on sale of two pro- 

of the group to a new duct tankers £4o0.000. teas tu 

and at tbe same time return to E22 ^ QQQ Fot the 18 miroibs 1976,' 
shareholders funds surplus to tne oeriort there was an ffltlra- 

requirements of those businesses. anlinan , r>rP d4t of £795.000 w4heh 
Interest on the compensation comprised of dividends from 
rtntiA payment so far, has been iDdu vtHn _ subsi di aries. 

Gian cent* ^ ^ ha ir-year results, and ■ • « 

Mr Alex Jarratt chairman of Beed International, who is although negotiations on com^ 

ended March 31, 19 <s. n «rimatP the full amount and ho .... 69 t uar-uu 

the total interest due to Swan of woffla ^ ~ m 

Hunter, cannot as yet be ealeu- ass odai« 


Current A ™ H VS == g » 

payment payment div. year yjr S^0.07m and paid out divj- i.m «u 

E. Midland Press 2.01+ - 3-6J -g. demJjf totaUins 10 .i^ 2 p net per 

P y l e L, Bo 5 dor J-;, 4 NU announced by -the directors is S< * ** 

Northern Foodr inL 1* Aug. ^1 —5 , 

wrsis- =tm£ s » J" [h - * 3 J Scott £1 .69n loss 

Dividends shown pence per share net except where otherwise stated. a 

rrr 8 ---- 1 "— *ss ss - m siSmst *** 

ST'" 6 cruue c.^ 5 3.7^ forecast ^ - 

— 1 £291,000 a pre-tax loss of £1.69m ^ tn - bu l tab j e ]os4i came out at 

I was incurred by James Scott £j oi m compared with a profit of 

Engineering Group, itself a sub- £loq.OOO and loss per 25p share 

ssss^i RS£5E5 
Dramoll nkHnu 1 ttlS.*” 0601 " 1 in 

isramau placing 1. jui ^ sgs%gi 

■m J Mp profit Of '£241,000 for tbe com- account of agreed escalation 

rhfll*Ar nt parattve six months. Turnover adjustment. 


Date Corre- Total 
Current of spariding for 
payment payment div. 

E. Midland Press 2.01+ 

Grant Bros. 236 

Kayser Bondor 1-9' 

Leaderflush °-33 

Northern Foodr inL 1 j 

Warnford Inv. — 43' 

Swan Hunter int. 3 

July 21 

Aug. 31 
Oct 3 
July 24 

5 years continuous 
achievement for 

• the company, 

• the country, 

• the shareholder. 




5 year Financial Record 

1972 / 4 “ 




1975/6 1976/7 1977/8 

rooo £000 £000 


Profit before taxation 

Earnings per share fully 
diluted (at 52% taxation) 

Dividends per share 

*12/t5th5 of u J5 month period 






5,898 8,554 12,740 19,852 

2,090 5,112 4.016 4,260 

9.4p 12.5p 15.4p 14.5p 

2.1p 5.2p 5.6p 6.3p 


Bramall placing 1.3m 
shares at 75p 

Ford main dealer, C. D. for by contract hire and hire 
Bramall, has arranged for a piac- purchase. .. , . . 

ing of 1^33,000 ordinary 25p The chairman says that in the 
shares at 75p wch. b'ffht of the group s success with 

nMn. Whi^h rporesentq Hobsons of Shipley (acquired in 
a turn? S S’cML of STtotS 19 ®> and Warrington Motors, the 
S« iLnS directors intend to continue their 

SS).‘SSiumS t^comp^l “ and wl,en 

AitS?t?d t t^ l hSS n J*Ti I ^e 1 | S The 53131100 «b®®t at December 

**• 1977 shows net tangible 
Pre-tax P^fita for the first assets o£ £3^a m (£2^m). Bank 

rnoo!*; r fn Qf r n l?I? n overdrafts and loans totalled 

£0.29m to £0.3 im but Mr. _D. C. yj (£0^S6ni). 

Bramall, chairman says 11 is too At May ^ 1573, the group had 
early to forecast full-year result* a secU red mortgage of £18,500 
However, be is confident of the other secured loans of £0.9m. 
groups ability to ™*® lu ^ The placing has been arranged 
advantage of the current favour- by Barclays Merchant Bank, 
able conditions in the UK motor Brokers to the Issue are Hedder- 
vehide market. wick Stirling Grumbar and Co. 

Pre-tax profits for 1977 in- 
creased from £0.78m to £l,12m A rnmmpnt 
on turnover up from £14.l6m to ® , . . . 

£17.66m. This compares with Ford ma “ 1 dealers have had a 
profits of £058m and sales of good run lately and L D. 
£4JI4m in 1973. Bnunafl is no exception. Over the 

For the current year the test five years its profits have 
directors intend to pay a net quadrupled and_ in the first three 
interim dividend of L75p per months of this year they are 
share and 1 recommend a final of mI -® P® 1 " C0n *. ahedd. Compared 
2.75 P . with its rivals. Its performance 

On' 1977 earnings, these divi- toota impressive. Over the last 
dends would be covered more five years the profits of Sheffield s 
than four times on the basis of C. Harrison have doubled and 
the tax charge shown, and more those °(,_ 1 fL n ?? n S Ha . roJ “ F 0, ry 
than twice on a fully taxed basis. Motors (both Fora m&m dealers) 
At the placing price tbe pros- bare increased by 7a per c®nt- 
pective muss yield is 9 per cent oromaii s return on shareholders 
while the p/e is 3.9 or 7 fully fun?® j s M P er C0Dt * n *? n saJes 
taxed it 6.4 per cent. The com- 

Mr.' Bramall says that the com- P*"b)e ratios for T. C Harrison 
pany*s growth stems from the and Harold Perry are a.l per cent 
introduction of new and and 41 P® r cent res7»ectniely. 
improved facilities, in particular At the placing price of 75p the 
the truck sales and 24-hour ser- company is capitalised at I3.8m 
vice centre In Bradford, and the and yields .9-1 per cenL By corn- 
group's expansion into contract Parteon with the yields of 3J) 
hire and the acquisition of Per cent and 52 per cent at 
Warrington Motors in 1974. Harold Perry and T. C. Harrison 
In 1977, Its Ford main dealer- — this sort of return looks attrac- 
ships accounted for 93 per cent tive. However, it is unlikely that 
of group sales, contract hire the boom conditions which Ford 
about 6 per cent and the balance main dealers bave faced over the 
from hire purchase. The Ford last couple of years can continue 
dealership In Bradford and for ever and the group will soon 
environs accounted for 41 per have to look to non-Ford 
cent of sales, the Hobson of franchises for expansion. The 
Shipley dealership in Shipley and purpose of the placing is to 

Warrington dealership— 40 per give the company scope to Issue 
cent The remainder is accounted paper far future acquisitions. 

Yearlings down to 9|% 

The coupon rate on this week's Three-year bonds, with a rate of 
batch of local authority yearling I1B pe r cent, are being issued by 
bonds IS down from 9} per cent ■, /«.- \ 

to 9} per cent The bonds are Mendip District CouncU (£ 
issued at par and are due on June 3110 Ogwr District Council 
6. 1979. (£0.55m), payable on May 27, 1981, 

The issues are: Rother District at par. 

SB? «' ffiMR S5 v ^ b \l“ S » 
a J“oe E&i&SPUSEi dSS^^SJSmbS 

District Council (£0.75m>. West * nd Clty ° f Nottj ‘ n S ham <^m). 

Yorkshire Metropolitan County 

Council (£0.5m), City of Glasgow 
District Council (£0.5m). City of 
Leeds f£0.5m). City of Swansea 
(£lm). City of Southampton 
(£lm), Woodspring District 
Council (M^m), District or the 
Wrekin (£05m), City of Salford 
(£0J25m), Doncaster Metropolitan 
Borough Council |(£0.75m). North 
Bedfordshire District Council 
(£0.5m) and Angus District 
Council (£lm>. 

North Devon District Council 
; and Chorley Borough Council are 
both raising £025m by the issue 
of 11 per cent due on May 28, 

1980, at par. 







£. Kodjdc 

B. Kodak 

K. Kodak - 

B. Kodak. 


























Nat Ned 

Nat Ned 

Nat Ned 




U. D. Bbell 
B. D. thell 
K. D. Bboll 













140 . 



























ClM Vfd. 

Jan. • 
Clone VttU 



- 5607a 

~ 523 


at: Z * 

¥ M 

_ I 6601* 

- \ : 

- sa«n» 

— 5245t 


F330 28.50 
F340 20.00 
F550 11.00 
F360 8.00 

P160 34.00 
F170 28.00 
F180 23.00 
P190 17.50 
F200 13.50 

P220 9.50 

FlOO 15.00 
FI 10 5.50 

F120 1.50 | 

F22.60 4.4a 

F29.00 2-20 I 

F27.SO 0.80 
F1SO 9.00 
F130 2.20 ! 

F140 0.40 

FllO 6.00 
F120 — ; 

F130 — 

17.00 - 

8.80 — 

3.80 1 

5.80 1 

3.50 38 

2.40 803 

12.50 - 

6.00 20 

2.70 - 

9.00 — 

2.20 1 

1.00 — 

— |F 113.80 



Year ended 
28 January 





Turnover excluding VAT £5^86,043 £5.010^85 

Profit on trading before tax £307,269 £242,196 

Taxation £176383 £MM9* 

Extraordinary gains after tax — £130,512 

Rate of Dividend — 

(maximum permitted) 19.405% 16.64% 

Earnings per share 7.48p 5.77p 

At today’s AGM a Scrip Issue is being proposed on the basis 
of one new stock milt for every five held. 

Year ended 
29 January 






Change of addles 

Hie Corporate Consulting Group 

(Bopc^adlient-Jones & Partners) 

£7 am convinced that together we shall 

make continued progress 5 David Hargreaves, Chairman 

miteorldepbonc for (ho Report and 
Accounts to: ThcSccrelary. Hestair Limited, 
30 Castle Hill. Windsor, Berks SL 4 1 PD. 
Telephone (95) 54945- 

Ss- Hestair limited 

Special Vehicles * Farm Equipment • Consumer Products ■ Employment Bureaux. 


The Scottish Equitable Life 
Assurance Society has improved 
ita immediate annuity rates by an 
across the board £S per annum per 
£1.000 lump sum invested, and has 
increased its temporary annuity 
ra’.**s by £6 per annum per £1.000 
invested. Those increases reflect 
the recent rise in medium term 
interest rates. 

For example, under these new 
rates, an investment of 00,000 will 
secure for a man aged 63 an 
annuity of 0.622 per annum pay- 
able in equal half yearly instal- 

are moving to new offices on 
Thursday, 1st June 1978 at 


Telephone 01-828 1123 Telex 917308 

JViaTicial Times Wednesday- May 3! 1978 


>. ; , ! 


■ \ ; • ; 

B ’-ri 

'i a- 

-•' V > ' - *v* 





txA. : 

v ,' l ast.' 


:, ■ \i"' 

i^n r ’ '' 





T HE accounts before you report on a trading year 
which was particularly challenging for many 
companies in industrial countries. 

In the United Kingdom the economic recovery 
which began in the latter part of 1975 tailed away at the 
end of 1976. Throughout 1977 there was, in effect, a 
second stage of the recession of 7974-75. During the 
course of 1977 the rate of inflation fell, but not to the levels 
of our main trading competitors nor fast enough to 
overcome the effect of an appreciating pound which made 
exports more difficult and less profitable. 

Through the year, world trade was relatively dull, 
although conditions varied from country to country, but 
by the end of the year the appreciation of the pound 
diminished the sterling value of our invisible exports, the 
profits and fees earned abroad and the dividends received 
from associated companies. 

It is naturally disappointing not to be able to record 
an increase in profits for yet a further Scar. At the end of 
August there was still an improvement over 1976, but the 
last quarter and year-end accounting treatments applicable 
to the whole year changed this. The operating profit, 
calculated on the historical accounting basis, was £75 
million compared with £S3 million in 1976. It is, however, 
encouraging that, after adjusting the operating profits to 
take account of inflation, and this is perhaps the best 
criterion of performance, your Company did almost as 
well as in the previous year. The attributable profit, on 
cither accounting basis, showed a decline. The reason for 
this, after taking account of changes in financing charges 

and provision for taxes, was mainly the less satisfactory 
rc*.ulUs expressed in sterling, from our overseas associated 
companies, particularly in the Argentine, while in the 
United Kingdom, International Synthetic Rubber 
Company made a substantial loss. . 

Within the overall operating results and the business 
environment which 1 have described, there were good 
performances bv most United Kingdom operations, 
notably in cables', engineering, industrial products and fire 
protection. We also continued to draw great strength from 
the diversity of the Union businesses outside Europe. 
There are always ups and downs and. as examples India 
and Nigeria, suffered last year from difficult local 

circumstances. _ , . . . • . 

Onr main problem is the state of the tyre business m 

Europe where overcapacity, the effect of oil prices on 
vehicle mileage, and the much longer life or the steel 
radial tvre have created more intense price-competition 
than at any time since the War: a condition with which 
the management of your Company, in association with 
Pirelli, continue to wrestle 'vigorously. 

CmV *Tl\& resutaof our operations in 1977 have eonfinned 
our existing corporate strategy of steadily modernising 
tyre facilities while concentrating on the development of 
^“ activities. It is, iodeed. encour^ng to ^ that 
those parts of the business which performed best 

which WC hud choMJU- as port .of our 
selective investment policy, for priority m expansion and 
development. We shall therefore hold to the main _thrast 
of the strategy, varying its implementation as cirvumstenees 
require from lime to time, in die conwfcnt knowfedge “ a i 
Ey*so S? we shall continue to build a 
socially responsible group. In this way Dunloo 

sponsive in future and true to the pas 
and Pirelli. 

1977: A i>olicy of 
selective investment 


At the 79th Annual General Meeting held in London on 
30fA May, the Chairman Sir Reay Geddes, KBE said: 

International Companies 

Together ne are an example or the international 
company which in recent years has come under attack, 
particularly from those who sometimes claim to speak on 
behalf of developing countries. This is an area in which it 
is again pleasing to see, behind the political rhetoric, a 
growing recognition of the part xvhich international 
companies play in improving the standard of life and the 
capabilities of the less developed countries, by the creation 
of new wealth and the transfer of technology. This 
relaxation of attitudes is one from which Dunlop and, we 
believe, Britain stand to benefit 

We are determined to grow as good corporate 
citizens wherever we operate, as witness the new plant 
recently set np in Raleigh, North Carolina, the new tennis 
ball factory which will be opened next month in the 
Philippines, and the continuing promise of our pioneering 
work to control agricultural pollution in Malaysia. In this 
improved atmosphere our efforts will secure readier 
recognition. It may even lead governments to accept that 
the contribution which we and others can make to their 
economic welfare depends in part on the freedom to deploy 
our skilled people, whatever their nationality, where they 
are most needed. 

Public Policy 

It is not only overseas that we need a better under- 
standing of the role of the international company. It may 
be natural at a time of high unemployment that home 
governments and trade unions are suspicious of companies 
which invest abroad. Even when our exports increase, it 
looks to them as if we are exporting jobs which are needed 
at home. This is not in fact the case. There is a natural 
progression, from export to overseas manufacture and to 
the provision of know-how, which any international 
company must follow if it is to adapt to changing circum- 
stances and to develop its full potential, in the long run to 
the benefit of its home base. It is also true that exports 
from home factories often follow investment abroad, and 
that in some countries, direct investment is required before 
exports are allowed in, and thus jobs secured at home. 
In the current debate about the use of resources from the 
North Sea it is important to keep well in mind the need 
for manufacturing companies to develop their overseas 
operations in ways which sometimes require the export of 
capital: in our case only a small part of our own invisible 

It is not only the government, but the business 
community, trade unions and the public at large who need 
to accept more fully that prosperity is indivisible. It is in 
the interest of Britain to contribute to economic develop- 
ment and rising purchasing power wherever there axe 
sound opportunities. 

Consultation and Codes of Conduct 

Although it is more widely recognised that the 
contribution of international companies is valuable and 
can be increased, governments do still operate unhelpfully 

at two levels. First it is so easy to win applause in criticising 
a company if it is big and still easier if it is international. 
One hopes that this is increasingly seen to be counter- 

The second level concerns regulation. Already the 
demands for information about our activities and the sum 
of the regulations and guidelines which we are expected to 

obey are becoming burdensome even for large companies 
experienced in international investment. It wonld be 
surprising if all this was not a real deterrent to the medium- 
sized company, with limited management resources, 
which is wondering whether to join in the process of 
transferring technology and management skills abroad 
and building new businesses as it does so. 

Economic Outlook 

It seems timely to take stock of government policy 
and action, because there have now been, in the life-time 
of the older ones among us, three major economic dis- 
continuities: the first in 1931 was not well handled and led 
to protectionism. The second, post-World War II, was 
managed with imagination, leadership, co-operation and 
very considerable success: as examples, in American 
support for the recovery of Europe and in the creation of 
international institutions and an economic system which 
worked well for a generation. The third began with the 
recession and OPEC price increase in 1974. Governments 
and other institutions have had many more years’ experi- 
ence, with more sophisticated economic advice and aids, 
and yet today, well into the fifth year, there is still dis- 
cussion abont how to get out of stagflation, abont the next 
phase of monetary arrangements, about the ways in which 
the international economic order should evolve, so as to 
deal fairly with the reasonable claims of developing 
countries without damage to the industrialised economies. 
Each of these faces problems particular to .itself, witness 
the US becoming largely import dependent fot energy and 
minerals, Germany believing she is becoming a saturated 
economy, Japan fearftil of unemployment and exporting 
often, it seems, without regard for profitability, Britain . 
still groping for consistency in policy and the need to 
become competitive in productivity. Perhaps a new 
realism is spreading here, the readier recognition that it is 
bound to beabitof a struggle for 50 million people in our 
small island even to maintain our relatively high standard 
of living. If so, future governments may find rive will to give 
greater emphasis to efficiency by releasing the energies of 
all those who are willing to improve their families' con- 
dition by their own more effective effort It has worked 
elsewhere and it used to work here. It seems worth 
tiying again. 

But the industrial economies also share the major 
problem of adjustment in many sectors to the new import 
competition. At present policies towards this are unclear. 
Some Governments apparently favour temporary selective 
protection and support while others prefer more positive 

action to re-stracture sectors in distress. More important, 
however, is the general environment within which ail 
companies can seek their own ways to adapt They really 
are not helped by a combination of price and dividend 
controls, high redundancy payments and other political 
pressures against change. It was well said that to be safe 
one must not be.made to feel secure. 

To burden companies so that it is more expensive to 
stop an unpromising activity than to plough on, is to lose 
sight of the main aim of adjustment-to release -resources to 
start something new and better, creating new jobs in the 
process. In these circumstances it is not only the 
promoters of new and small firms which need encourage- 
ment The release of energy within the managements of 
medium and larger firms is just as important so that they 
can be seen as part of the solution to the general problem. 

Thanks to Management and all Employees 

The problems and frustrations of T977,' like the 
economic and political issues which I have been describing, 
pressed down hard on managers at all levels. They and all 
those employees and their representatives who respond 
with understanding to the needs of the business as a whole 
and so to the interest of aJI those who depend upon it, 
have once again earned our warm thanks. 

Prospects fer.1978. 

Meanwhile, what of the current year. I97S ? Last year, 
as I say, we saw the onset of the second phase of the 
economic recession which began in 1974. So far this year 

such signs of recovery' as there have been are very slight. 
It is likely that in the end consumption spending in the 
United Kingdom will be higher in 1978 than lust year: but 
so far there has been little or no recovery from the levels of 
the end of 1977. Abroad, the level of economic acmity is 
generally being maintained. 

The slowness of the recovery suggests caution in any 
predictions about results for the present year, so far trading 
conditions remain difficult. 

The Board 

May I turn finally to membership of, and changes in 
responsibilities, in the Board. Mr. J. R. Scott resigned at 
the end of the summer to take up an appointment in the 
Far JEasL Sir Harry Melville is now retiring after almost 
eleven years of distinguished service on the Board. 
His wide knowledge of scientific matters has been of 
great assistance to the Company. 

Two new directors joined the Board on 1st January, 
197S. They now retire and offer themselves for re-election 

at this meeting. Mr. AJau Lord joined the Company in 
July, 1977 from ELM. Treasury where he was Second 
Permanent Secretary. Since the beginning of this year ho 
has been responsible for a range of Dunlop's international 
activities. Mr. Philip Shelbourne is the Chairman of 
Samuel Montagu & Co. and a director of the Midland 
Bank. We are fortunate to have secured his services in a 
non-executive capacity. 

Sir John Read and Sir Frank Roberts offer themselves 
for re-election. I need only say that your Board 
very much the poorer without the valuable contribution 
which they both make to our deliberations. 

. As indicated at our meeting a year ago, I shall have' 
resigned from the Board as from the end of this meeting. 
The Board has elected as my successor Sir Campbell 
Fraser, whose Knighthood in recognition of his contri- 
bution to our national affairs by services to export; 
shareholders, like his colleagues, will have noticed with 
pleasure. After twenty-two years with Dunlop, including 
almost eight years as Managing Director and of involve- 
ment in the affairs of the Union since its inception, he has 
built around him a team of executive directors who 
bring both a deep knowledge of the Company and a wide 
range of experience, well fitted to the coming years as we 
see them. In addition, the top organisation has been 
adapted to permit him. as executive chairman, to delegate 
appropriately to Mr. J. Dent and Mr. E. G. Wheater, as 
its Managing Directors, the affairs of Dunlop Limited, the 
main European operating and holding company, and t6 : 
Mr. A. Lord, as its Managing Director, those of Dunlop 
International Limited. For financial convenience, this, 
latter company now has its head office, in Zurich with the 
approval of the authorities. 

The Board has appointed me Honorary President 
of the Company. After forty-three years' service, I am 
naturally appreciative of this, and leave today wishing 
Dunlop arid particularly Sir Campbell and his colleagues 
every success. \ • 

Copies of the speech and “ Report to Employees * 
25 Ryder Street , London SW1 Y 6FX, 

can be obtained from the Secretary, Dunlop Holdings Limited, \ 



Financial Times Wednesday May 31 1978 



16th M«y 1978. the following note ware 
drawn f#r redomutlon on isth Jure. 1B7B. 

50 59 67 72 126 179 

21 G 231 234 289 293 313 

335 346 3*7 356 386 *09 

411 421 425 427 437 446 

Brocks forecasting rise 


UJ. 575.000,00a Guaranteed Roaring Race Notes 1983 

Lloyds Eurofmance N.V, 

to £lm this year 


( Incorporated with limited /lability in the Netherfam/sJ 

Guaranteed on a subordinated basis as to 
payment of principal and interest by 

1024 1026 1Q55 1039 

1130 1134 

1191 1193 

1 1254 1308 

11356 1368 

1475 1479 

1554 1574 

523 525 532 552 

620 634 626 644 

BU 873 693 703 

746 761 775 730 

842 807 883 893 

9*3 945 1001 1014 

1Q55 1039 1090 1097 

1144 1 163 1174 1183 

1Z00 1207 1211 12U 

1330 1332 1337 13*4 

1412 1433 1463 1470 

1163 1174 

1193 1200 1207 1211 

1308 1330 1332 1337 

1512 1527 1632 1543 

1581 1568 ... 

On the iStti July 1978. thu note* 
doalqnaMd a Dove will become duo. Said 
notes will be paid noon presentation *m 
lurrender thereof with ell coupons apper- 
taining thereto maturing after Dio redemp- 
tion date, at the option of the bolder *t 
>a) Fiscal A peat. British Bank of die 

Lloyds Bank limited 

fJncorportfterf with limited liability In England) 

Middle East. PJO. Bov 242. Sea Road. 
Aba Dhabi. U.A.E. or 
i*> The British Bank Of the Middle EMt 
99 Bbhopwale. London EC2P 2 LA. 
Coupons due 15th July 1978. should 
be detached from the Notes and collected 

In the usual maimer. 

On ■ ltd after 15th July 1 978- interest 
shall cease to accrue on the Notes hereto 

d-rnnat* ,0r W G e uSuANSKA BANKA 
BY British Bank of the Middle East, 
Abu Dhabi. 

In accordance with the previsions of the Agent Bank Agree- 
ment between Lloyds Eurofinance N.V.. Lloyds Bank Limited, and 
Citibank. N.A. dated Hay 26th. 1976. notice is hereby given char 
the Rate of Interest has been fixed at 8is% pA. and that the Interest 
payable on the relevant Interest Payment Date. November 3Qih. 
}978 against Coupon No. 5 will be US.S44.80 and has been computed 
on the actual number of days elapsed H831 divided by 360. 


May 3 1st. 1978 

By: Citibank. N.A.. London. Agent Bank 

CIT 1 BAN < O 


Gabinete da Area de Sines 

(An Agency of the Republic of Portugal) 

US 550,000,000 

Guaranteed Floating Rate Serial Notes 1982 
Unconditionally Guaranteed as to Payment of Principal 
and Interest by the 

Republic of Portugal 

In accordance with the provisions of the Notes and Agent 
Bank Agreement between Gabinete da Area de Sines, the Republic 
of Portugal and Citibank. N.A.. dated May 31. 1977. notice is 
hereby given chat the Rate of Interest has been fixed at 9|g% pA. 
and that the interest payable on the relevant Interest Payment Date. 
November 30. 1978 against Coupon No. 3 will be U.5 J498.8Q and has 
been computed on the actual number of days elapsed (183) 
divided by 360. 

May 31st. (978 

I By: Citibank. N.A.. London, Agent Bank 

K0. MISS of 1978 

Chancery Division Companies Conn. In 
of The Companies Act. 194S. 

Petition for die Win dine up of the above- 
named Company hr the Ksh Coon of 
Jtuttoe was on tbe 11th day of May 
1978. presented lo the said Court by 
Until, employment agents, of Forest 
Rouse. 16! Station Road. Clitng/onl. 
London. E.4. and that the said Petition 
la directed ro be heard before the Court 
5) runs at the Royal Courts of Justice. 
Strand. London WCL\ 2LL. on the 
Uih day of June 1978. and any creditor 
or contributory of the said Company 
desirous to support or oppose the making 
of an Order on (he said Petition may 
appear at the lime of hearing, in person 
or by his counsol. for that purpose; 
and a copy of the Petition will he 
famished by the undersigned to any 
creditor or contributory of the said 
Company reonlring such copy on payment 
of die regulated charge for rbe same. 


JS Wjvatuun Place. 

London W1H IAS. 

Ref: CK. Tel: 01-282 3181. 

Solicitors for the Petitioner. 

NOTE.— Any person who intends to 
appear on (be hearing of the said Petition 
must sene on. or send by post to. the 
above-named notice In -writing of his 
Intention so to do. Hie notice mus: state 
the name and address of the person, or. 
if a firm the name and address of the 
firm and moat he signed by the person 
or firm, or his or their solicitor iif aoyl 
and most be served, or. If posted, must 
be sent by post In sufficient time to 
reach the abovo-named am later than 
Four o'clock In the afternoon of the 
9th day of June 1978. 

oesierreichiscn: alpine 


LOAN OF 1965-1985 5*%. 
I: ti broil, III to the attention ol 
holders ot il»e above mentioned bonds 
mat the amortisation auola al 
IL‘STTF.000 maturing June 15 1978 
hai bean eff-tttd partially ih-euah re- 

purchasing on the market and Mftlill* 
throvah drawing Dr lot. 

F-om this drawing. It ha) resulted 
that the bonds ol SUS1.000 remaining 

o-atstandina and comoHjed between the 
number 2258 inrius've and the number 
2902 inclusive and one bond at 5US250 

: limbered 3764 will he re.mbursahlc at 
Par at of June 15. 1978 with rne 

trilowlna institutions 
Ban-rue Internationale h Lusemnourg 
S.A Luxembourg 

Bancue Brunt lies Lambert S.A.. Brussels. 
Krcd-dbank S.A.. Brussels. 

Soeltie Generate de Banoue. Bn-.seis. 
Amsterrf am- Potter dam Hank N V.. 

Aloemene Bank Nederland N V.. 

Pierson. Hc!drlng A Pierson. 

Are you a Stock Exchange Investor? 
Does your interest lie in the Far East 
or Europe? Is gold your particular 
concern? Maybe you're a 
commodities expert or a forex 

Are you hungry for the FT Index or 
news headlines? 

Credit Commercial dr France. Pirn. 
M.ll Samuel 4 Co.. Lord an. 

Xle'nwort.- Benson. London. 

Samuel Montagu 8 Co. Ud . London. 

K red let bank S.A. Lascmbuurpeoisa. 
Liuem bourn. 

C-edi;anstalt Bank»ereln. Vienne 
Oesterreicbiwhe LanderBank AG. 

Bank ot America NT 8 $A. San 

Morgan Guaranty Trust Company of 
New York. New York. 

Whatever your interest... 
Wherever you are... 

Ring London , Birmingham 

Coupons maturing June 15. 1978 
are payable with these same institu- 


It « reminded that the following 
bands, drawn at previous drawfncu 
ha»c not vet been presented lor pay- 

Maturity 1 5-6.1 974: 

'US i.OOO bonds — none. 
3USZ3D bond* — 7609 to 7617. 
Maturity 15-6.1977: 

>1151.000 bonds — 

2081 lb 2092: 2099: 2114 lo 2126: 
2165 to 2166. 

SUSSSO bond* — 

4427 to 4442: 

4775- 5015 to SOt 8. 

Amount outstanding after Juna 15. 

1U5J 94C.CD0— reircsentcd by S.I39 
bond) ol SUSl-OCto 6.828 bands ol 

SaclflC Anonyms 

J’>: Mat. 1978. 

Liverpool or Manchester 

246 8026 

for the 



* and 

Business News Summary 

Brils .used 31 5.7B. £jm. at B47-6a>„ I 
62 7m at B'a".. maturing 30.3.78. I 
Applications totalled L3S.4m. Bills out- ■ 
•landing £9 4m. 

J.B. Holdings 

The Johnston Group of Companies 

Civil engineering, building and road surfacing contractors, 
manufacturers of concrete and g.r.p. pipes, roadstone, road suction 
cleaners and hydraulic equipment. 

Ten years of increased profits 

Group profit increased by 14.6% over 1976. 

^ Proposed ordinary and cumulative preference 
scrip issues will nearly double shareholders’ 
f income and secure trustee status for the 

Exports more than doubled to £7 million, 
representing 33% of group turnover. 

% Satisfactory results expected in current year. 


□ U.IC 


Profit before tax- 





6S 72 76- 77 68 72 76 77 88 72 76 77 

r‘ rt «;ARofthe19T7ReportandAccountsmayb® obtained firomthe Registrar's Department, 
P Midland Bank Limited. Courtwood House. Silver Street Head, Sheffield SI 3RD. 

DESPITE THE disposal of its 
security division profits of around 
£Lm are expected for 1973 at 
Brocks Group or Companies, Mr. 
B. R. Clack, the chairman, says in 
his annual statement. 

Excluding the security division 
profits in 1977 were I0.69m. 

Ur. Clack says the group has 
for some time wished to increase 
Its investment in the electronics 
industry, particularly in the 
marine field. The sale of the 
security division wOl facilitate 
this expansion. He says directors 
believe that the future at the 
company lies in the electronics 

Already the group has pur- 
chased the CaJIbuoj range of 
marine products and other 
acquisitions are currently being 

With the hoped for acquisitions 
taking place in 1978 he is con- 
fident considerable advances will 
be made in 1979. 

In 1977 the marine division con- 
tinued to progress, and with more 
new products scheduled to appear 
this year the chairman looks for- 
ward to a further advance. 

On the in-car entertainment 
side he says the group now has a 
sizeable part of the market, but 
has yet to secure the necessary 
orders from motor manufacturers 
in the UK to provide the impetus 
required to compete successfully 
H-rfh Far Eastern imports. A new 
VHF radio and radio cassette 
player will be introduced soon, 
and will enable Brocks to export 
its products more successfully. 

At year-end net current assets 
were £3. 15m (£1.49m) and fixed 
assets £3. 52m (fa-Sflin), reflecting 
the disposal of the security divi- 
sion to Automated Security 

Racsi Electronics owns 13.58 
per cent of ordinary shares.' 

Meeting. Poole, Dorset, June 20 
at 10.45 am. 

— — — company achieved a record profit 

BOARD MEETINGS Sj.iftS’jfft.E? <*“ 

too raiion-i dc companies bate nouaed tax charge (same) on ® 
dabs of Board meetings to the Slock months figures. 

Exchange. Such meetings are nattailr 

compost non, between bmiiuw *nd Wdity, 



held far the pornose of considering dM- 
dends. Official Indications are not avail- 
able whether dividends concerted are 
interims or finals and the snb-dhrifiiORS 
sfaomi below are based mainly on last 
years timetable. 


Interims— Carr's Mining Industries, 
DuMlier. Kelsey Industries, 51 and G 
Group, Marley. 

Finals — Percy BQton. J. Bright, John 
Crwlber, Alfred Dunhfil. Edinburgh and 
General lnvestrnt>cis. Iirrcntordon Dis- 
tillers. M and G Second Dual Trust, 
Xorwest Holst. Seed International, H. 


Clark Son 



iSatiow between bumuw wo wettty. 
JJJ (’Ration and trends 

Syomin Board practices on botti *W«* °S the Auntie, 

*"** in Which B0#K ** 

be organised and function. . 

The flirt International Presrtmfor 

rjinmiif 1977 at the request of e number of diefotwitmi 
rim rmrtldDent* to rfrocmt their concept* of 


Samuel. TAXABLE profits of ClexK, son 

^^FUTURE DATES sheepstaR, 

Grand Stetropolitan — June | tnanufacmrer. fell shghtiy J JJ 

Martin the Newsagent — - Jn» 5 year to FebruaJT &, frotn * 

Fhiafa— - „ neak £1.1001 to £L03m on turnover 

.\5sociated Television — — ■| 0TW — j n7 56m compered with 
Berkeley Hambro Propeny ...... June i ahead at o«.own ctHnn«™ 

Bishop's Stores June 9 £135210. 

Oftmiry^ofl; - i Profit was struck after depre- 

P^p. and R^eraioMry^ "imesi”! June 12 ciation £238.000 “JJj 

Sumrie CIoUks - June 6 terest £354.000 l £362,000). After 

tax £422,000 (£600,000 )_ netprofit 

Tnhmra hrioed the partWpant* to remit tneir co 

SnSwylxSds »S fortiMStoln « Bart Mon*®*- 

Wednesday, Septambar 27, 17riXJ hows. 

CEI Gnaw. 

was £612,000 against £394,000 and 
x t £ t» /f earnings per £1 share are shown 

iSlG OT as 6L3p compared with o6Ap. 

A91C U1 IVAttAA The directors state that m the 

T?nfpmricP5 current year they are P utt j°f 

JLilltci pi. I5 >v 3 more resources mto extending the 

J — 1 - company’s retail interests m 

reduces loss several countries and the 

pects for these parts of the 
The directors of Isle of Man fewness are good. 

Enterprises report a reduced loss There is an over capacity for 
for the six months to April 30, tannins and feJlmongering in the 
1978, from £13,752 to £13.500 on yjs. due to expansion and the 
turnover of £27,070 against establishment of processing in the 
£25.765. and state that the loss is countries from where traditionally 
not indicative of the full year’s a Jot of raw materials have been 
result because of the seasonal purchased, they say. The effect 
nature of most of the company’s 0 f these developments is to put 
business. pressure on the supply of skins 

Rentachalet bookings for the and to provide more competition 
holiday season are comparable for finished products. They add 
with last year, they add, and they that the position for footwear is 
anticipate an increased contrihu- rather better than for skeepskin 
tlon from this operation in the products generally. 

■second-half. The company is unquoted and 

For the full 1976-77 year, the has close status. 

Mr Mk Dwtwytar, Deputy DiiBCtor 


4, chom'in dt Conchas 
CH-1231 GbnwB/SwhzBrfand 13 _■ 

Tri; Gbooub 022/471 133-TetoG 274S2 


The Treasury have given consent to the declaration by the following 
companies of dividends of the total amounts specified for the 
financial years ending on the specified dates; 

Grove bell Group Ltd. 

Wettern’s development policy 

FarneH Electronics Ltd. 
Eibar Industrial Ltd, 
Wheacsheaf Distribution & 
Trading Ltd. 

P & W Madelian Ltd. 
Wadham Stringer Ltd. 

K Ingston-upon-Tham es 

£22728 30.1177 
Leeds ££20.29B 31. 178 

London WCI £296,883 31,1277 




Ocean Transport & Trading Ltd, Liverpool 

LN HIS first annual statement as 
chairman of Wettem Brothers, 
Mr. J. H. Wettem says the hoard 

Is currently addressing itself to 
shaping the company’s future 
over the nest few years and plans 
are going ahead for the expansion 
of those subsidiaries which have 
performed consistently well in the 

At the same time the directors 
are working to strengthen and 
regroup ' the operations which 
have been less successful of late. 

There are signs that parts of 
the construction Industry are 
beginning to recover From their 
deep recession, and trading 
results for the first qnarter of the 
current year already reflect some 
improvement in the market. How- 
ever, it is hard to predict whether 
this will continue. 

There has been more Involve- 
ment than in the past by directors 
of the parent company in the 
management and operations of 
subsidiaries. This makes for 
better control and supervision in 
subsidiary activities and better 
opportunities for prompt imple- 
mentation of Board policy. 

As reported on May 27, pre-tax 
of the company, which is subject 
to a bid from W. .and J. GIossoo, 
slipped from £155.000 to .£50,000 
in 1977. 

Mr. Wettem reports that after 
a slow start in the first half 
there was an improvement in 
trade which resulted in better- 
than-expected full year figures. 

The distribution division over- 
came many problems brought to 
light In the first half and has 
been re-structured to harness 
better the skills of local manage- 
ment. Builders merchants is 
trading at a higher level and its 

performance was up to expect a- As a precaution against future 
tion in the first quarter of 1978. problems, the compound con- 

Wholesaling made disappointing cemed is now being manufac- 

progress and was considerably tured in the company's own 

affected by the national drop in works under the supervision of its 

demand for kitchen furniture, engineering staff. In the longer 
This Is picking up again, and, term this will make for improved 
with more activity in the ceramic performance which the directors 
tiles business, the unit is now consider to be satisfactory, 
operating at a more satisfactory a of these problems 

leveL ft was decided to write-off 

Hie manufacturing division's development costs, previously car- 
performance unproved during ned forward, together with ail 
l»77 and has a more encouraging expenses Incurred during the year 
order book than was the case 12 1977. These have been treated as 
months ago. The business of an extraordinary item in the 
interlocking paving blocks ia accounts. 

responding to considerable nation- a statement of source and 
wide publicity. The directors are application of funds shows a 
considering the steps needed to £223.000 decrease (£801,000 
ensure that Mono Concrete main* increase) in net liquid funds, 
tains Its share of this new market. The AGM of the company will 
Plans are also in irand to increase be held at the Fairfield Halls, 
the capacity of works in Wales Croydon, on June 22 at 10.30 a.m 
and Scotland. .... „ ..... - - ■■ 

European Ferries Ltd. 

Gill &-Duffus Group Ltd. 

Fair bairn Lawson Ltd. 
Unilever Ltd. 

James Neill Holdings Ltd. 
Newman Industries Ltd. 
French Kier Holdings Ltd. 

The House Property Company 
of London Ltd. 

Toier Kemsley & Millboum 
(Holdings) Ltd, 

Siemssen Hunter Ltd. 
Seiincourt Ltd. 

John Foster & Son Ltd. 

Dares Estates Ltd, 

F C. Finance Ltd. 

Marshall’s Universal Ltd, 

First Castle Securities Ltd. 
Third Mile Investment Co Ltd, 
Ladbroke Group Ltd. 

Spear S Jackson Inter. Ltd, 
Bamfords Lrd. 

KwJk-Fit (Tyres & Exhausts) 
Holdings Ltd. 

London SWI 
London SE1 

London EC4 



£1.883.833 25. 2.78 
£54.183 31.1277 
£971398 31.12.77 
£13.709.978 31.1277 
£4.479,451 31.1177 
£4.321.231 31.1177 
£606.151 31.1177 
£55.003.391* 31.1277 
£1.421477 31.1277 
£1.041872 31.1177 

Buckhunt Hill £059.958 31.1277 

London SWI 9 £26.515 31.1177 

London EC3 
London EC I' 
London NW1 
T onbrldge 

£2.339.021 31.12.77 
£226,231 31.1277 
£957785 31. 1.78 
£218.105 3. 378 

£58,261 31.1277 
£211121 31.12.77 

Do Sc,t- 

£479,512 31.1177 
£70.507 31. 1.78 

Tonbridge £36,000 31.12.77 

London NW10 £5,376.012 ,3. 1.78 

Guildford ' £755359 ,31.1277 

Uttoxetvr £250,000 -31.1277 

foldings Ltd. . Broxburn £187758 28. 278 

•of. which £20331.561 is not to be paid until further consent 

PuMJiAetf by the TreoJury « required by the above Art.. 

The trading division had a 
successful year and has made 
headway in its plans to improve 
methods of sand extraction and 
treatment, also to widen its 

In the composites division 
efforts have been directed to the 
development of the medium volt- 
age underground jointing system 
by Wettem Electric! This Inno- 
vation has received much support 
from electrical engineers and the 
project has progressed well dur- 
ing 1977 although some difficulties 
were experienced in connection 
with the supply of an important 
ingredient: a problem now over- 
come. This adversely affected 
performance at the latter end of 
last year with some carry over 
into the current year. 


Q f insider international 



Results far 1977 reported May 25. Group 
flied assets £t.4m i£L3rm. Net cur rent 
assets CLSm tn .24ml. Meeting. Abereoru 
Rooms. BC- on June St. at II am. 

1977 previously reported Fixed assets 
EJ.lSm (S.43RU. net current assets SOJra 
- £8 .79ml, Increase In act Uqnld funds 
f 197.256 *£205.829 decrease). Meeting. 
WW Dnurton. Jane SI at Aii pm 

ASH SPINNING— Final dividend 3.4p. 
making L4p year ended MarcD 75. 19TB 
OSS27p). Croup sales tf.lW.T0l 
■ £3.071.471). Net group profit ftn.423 
f £44.794 ) alter lax I15.K05 ( £43.459 1 , Add 
exceptional Profit £11-1-450 *07439 ». Earn- 
ings per share 19J3p fl7-S3p>. Board 
■mends fa-latc advantage of am- reduc- 
tion In tbe rate ol related tax credit for 
■fae fiscal year 1978-79 below 54-wtto. 

BiSH arse ATE TRUST — Results to 
March 31. 1978. reported May II. Invest- 
ments £22JI3m (£29.l3m). current assets 
J— m i£L21mv currenr liabilities xo.GSm 
Increase In dividend at least 
a* great as Inflation rate forecast for 
1978-79. Prudential Assurance Company 
omis 18-3 per cent of share* and Standard 
Life Assurance Company SS per cent. 
Meeting. 41. Blshopsgate, EC. June 19. at 
2.43 pm. 

fWITNEY) — Results for year ended 
January 2T. 1D7S. already reported. Ftaed 
assets £L43m. 1 samel. \ei current assets 
a^3Ri. i£L59m.i. Meeting. Witney, 
Oxfordshire, on June 19 at 2.S0 Pjtj. 

suits for 1977 already known, firrest- 
meniB I3.I34.B0I 'E2.744.U0i. current 

assets £430.919 f£2I1.SS6>. nuranf UabfL'ttey 

EM2JS8 (CSM.H3I. Net liquidity Increased 
by £114.884 1 £103.1971. Directors expect to 
aonntmee farther Increases In dividend 
for IKS. Meeting. Jersey- June 9. 

COSALT— Results for January I. tbts. 
reported April 19. Net c u rr e nt assets 
ELlm tC/Smi. Group fired assets 

E3.63m 1 £2 44ml. Although growth h» not 
expected to march that of recent rears, 
another good year expected In 1979. Meet- 
ing. Grimsby. June 19 at noon. 

ANCE 'COMPANY— Remits for 1977 

already known. Investments £883 633 
*£593.744*. current assets ti.47in fCLlgmi. 
current Labilities il.Wm umwi'. At 

rear end. cash at bank, on deposit and 
In hand up nK.8«0 <£Kft506*. Chairman 
says trend of premiums written far 1B7S 
underwriting account indicant farther 
growth or direct credR wnl twwUnn 

DOWNS SURGICAL— 1977 results re- 
ported afar -L fixed assets C.wn. 

(Cl.Mmi. net current assets £4jm 
i£L3*Mi. increase of Ml linuld fands 
EJJ7J75 1 sx -33m 1 . Recovery which began 
(0 1977 continues and 197S-79 Is expected 
to a how a further Increase In sales and 
profits Meeting. SeUndgo Hotel, W. 
June IS at noon. 

EDWARD LE BAS— HM0KB for 1977 
already koon-n. Grebp Bred assets E.7m 
•UJCtnl. N« current assets £C.4Sm 
(ELSimi- Meeting. Savoy Howl. WC. on 
June 31 ai noon. 

for rear to Hard: Si. INS. reported 
April 2L Quoted Urrirstments In UK 
I7.3Sm f fLSSmi : elsewhere £3. Tint 
rfi.ismi and unouoted £349.7tG t£S4S.4S3i. 
Net current asms £w^ja 1 £333.9^11. 
Cash and short term deposits Increased 
£431.000 IGW.9U0I. Mwtlnji, Edinburgh. 
June 33. 10.30 am 

ROBERT J. GUFF AND CO. 'blooicioek 
| auctioneering!— tncmtie for 1977 r3*:.7]6 
1 £474.133’. pre-tax loss tSfi.6 S? i£35J*Q4i. 
Fixed assets E3.53m. <same>. net mrrent 
liabilities £S3^*J (IHSJ.MD.. Wortting 
capital up £381.252 tr.S7.337i. The com- 
pany is budaouns in 1978 Tor gains on all 
fronts. uSlch. IT achieved will contribute 
to a tardier Imprortnism la it' financial 
pouiton. Meeting, Kill. Co. Kildare. June 
13. al II am. 

UHiDON— Rt suits for ISii previously 
reported fixed assets PJ49ti iDtnni, 
Bat current turn &M.C17 tUUUl. 

Increase In Uquld funds G42J9S 
(C29ASI). Meeting. Wimbledon. June 31 
at noon. 

Results far 1977 reported May 131 Fortiter 
increase expected to J978 Fixed assets 
D.Ofim (£0.73mi. net current assets f9.61m 
<£SJ4nn. Meeting, ino. old Broad Street. 
BC. June 19. at 10.30 aan. 

for vear ro February 29. 1978. already 
fcntrwn. Qnoied mvesunents at maritet 
value C-Slm *£2.imi. Unquoted ar dlrec- 
mrs' valuation D7J37 IE13JS5V Meeting. 
44. Bbwrnsbury Square WC. on June 19 
at 10 am. 


19»i esult- Previously reporteif. Invest, 
menu £S.34m >£4.4mi. net current liabtU- 
tics £49.090 <£P4JK3V Suhalllarr Xational 
and Foreign Securities Trust not eonsnU- 
dated— total assets £1UJKM (£139.0O7'i. 
liabilities £148.4X5 f£i 13.692'. Meeting. 
Bloomsbury Square. WC. March 39 at 
3 ora. 

for the year to February 33. HITS, 
already known- Group fixed a ssets 
£i3.4ini. i£9j4m.t. Current asseis n. 9?m . 
tnJPm.1. Current liabilities £2. 48m. 
til .8«in. 1. Decrease in woritina ca ratal 
rt.W.OM * £398.990 Increase;. 

TRUST— Restore for year to Mart* 31. 
lfliB. reported May ip. UK quoted Invest- 
ments. at market value. {4JSm i£4.12mi. 
abroad £4. Sim i£3.03ml. and unquoted, 
at directors valnation. £434.460 f£4HgJMi. 
Net curreuL assets £375.909 1 £240.760 

liabilities 1. Directors say rerenue pro. 
lections are encouragtiu and they nope 
lo recorntnend a farther Increase In din- 
dend. Meeting. 2. SL Mary Axe. EC, 
June SI. IIJ9 am 

PANY!— Turnover £3 1483m t5M-94mi In 
1977. Pre-tax profit SS93.0H f£2.93mi after 
tore rear D.3Sm (£J.fon>. Tax 099, OW 
UTSLBOOi. Oulmua says In annual state- 
ment that overall group shonld have a 
better year titan last but. due 10 Ufa 
cotnlnued economic recession, win pro- 
habiy not achieve the profit they saw to 
1979. Company owned by Taxer Kemsley 
and Mlliboorn fBoidtiural. 

tribotor*— Reanlts tor 1977 reported May 4 
with observatrons on prospects. Group 
fixed assets flLSSm f£4JUn'. Net current 
aKseta MiSm <£S.4Sn]'>. Meeting. Fair- 
field Ralls. Croydon, on June 19. ar mon. 

MORGAN CRUCIBLE— Results for 1977 
reported April 7. Net current asset-, 
£32.49m. *053Tn.t. fixed assets {37.7m. 
f *33.51 ra.i. Increase In Tumls £l,93m. 
(£U.5im. 1. Meeting. Cafe Royal. W„ ‘ 
June at 11 a.m 

MENT TRUST — Result/" lo March 31. 1978. 
reported May 13. Investments EM^Sm 
t£34.B7m), current assets XI. 63m fXl.fiSraV 
curreni hablliltcS £9 .Mm fXO^Sra'i. 
Increase to dirifiauj expected this rear. 
JI"etina, Waiorioo Place. June 23 at 3.45 

PION ittiscotim house 1 — Remlis lor year 
10 April M, 1978. reported May 17. Bins 
discounted na.44m i£8j.70mi. gierltog 
WKtnieblc ccmficaits 01 deposit 113.94W 
rxifi.sirai, invcsimcnta IfilSSm fEJim). 
Dcpnsita. other Uabllltie* and reserve far 
corrtlnsencleB riJTm rami. Meeting. 7. 
BtrcMn Lane. EC, June 21. at 3J6 pm." 

and iH? deanlngv- Results far 191 t 
repotted May 12. Group fixed, assets 
£7.2lTn, 11759m. 1. Current assiu £3.74iti 
tEJ.tbm.i. current HabilltiM |4.Wm. 

■ f21hn.i. Tradins In early rapuihs of 
current year liw hecn mixed. The year 
alii be dlOlculi but director* hope *ronp 
will make rirtber progress. STeotina 
Roial Lancaster Hotel. W.. June 16 


lor ibe year 10 January M, 1878, reported 
'lay Croon Hscti assets £Sm. ilUim.i. 
Current asseto n.4Sm ititttn.i. Current 
H ablll tlea 13. 41m. i£L83m.>. General 

prosnecis for the company are 
enro urastoH- TnpreaM lb worhinx capita] 
£?71 MS t £739.310 1. Meeting. Great Eaatetp 
HouU. E G., on Juna 20, u noon. 

Societe Anonym e — Siege Social : Luxembourg ' 

25 B Boulevard Royal 
R. C. Luxembourg n.B 7f56 _ 

7.75 PER CENT. - 1970/1985 

Guaranteed , by F1NS1DER 

FINSIDER INTERNATIONAL having already acquired under the 
Terms of the Loan* 711 bonds of a face value of $1000 on the 
market. Banco di Roma, in its capacity as Paying Agent, in 
accordance with the Sinking Fund Scheme, has drawn lots— on the 
issuer’s behalf— for the remaining 889 bonds necessary to complete 
the ninth redemption instalment' due on July i f 1978. 

The draw was on !2th May 1978 in the presence of a solicitor and 
representatives from the Issuing Company and the Guarantor. 




The bonds indicated above for redemption will expire and be made 
payable as from July I, 1978 in US$ for the entire nominal capital 
plus interests accrued up to that date. They must be presented 
for redemption with all coupons expiring after July | f 1978 at. the 
following institutes: 






Rome, .2 Mav 1978 Pay ‘ ng ^ 

1 £> 

Financial Times Wednesday May 31 197 s 


Cost pressures worry 
General Mining 


A \"EILED WARNING that the 
conitnuincr increase »n production 

corti may force the closure of 
some South African sold mines, 
with consequent rise »n un- 
employment and a decrease tn 
foreign ca chan sc earning was 
made yesterday by Mr. W. J. de 
Villicrs, the. chairman of General 
Minins, in his annua] statement. 

Since its nrqui.sition of a 
controliinc interest in Union 
Corporation. General Min Inc has 
been second only to Anglo 
American Corporation among the 
South African mining houses. Its 
mines account for some IS per 
cent of 1 he gold produced m 
South Africa and about 36 per 
cent of the uranium. 

Mr. de Vdliers remarks were 
made in the context of a mixed 
assessment of prospects for the 
current year, at the end of which 
he concluded that “results for 
1973 should once again be 

Unit production costs in the 
industry had been increasing 
faster than the rate of inflation, 
Mr de Viiliers commented, while 
productivity had decreased. 
tVaces. too, had moved up faster 
than' productivity. 

“All These factors constitute a 
danger to the industry," he said. 
The effects needed to be con- 
sidered both by the state and by 
the industry. 

“This includes all the resultant, 
effects of a possible reduction in 
the number of mines which will 
be able to produce gold profitably 
m the future. Possible unemploy- 
ment resulting from the closure of 
mines and the decrease in foreign 
exchange earnings are particu- 
larly important/* Mr. de VilUers 

The cost per tonne of gold 
milled among mines administered 
by General Mining rose to R28.5 
i'£ 1 Si last year, compared with 
K22 9 In 1978. according to figures 
m the annual report. Total costs 
were R21S.5m in 1977 against 
RIRfilWm in 1976. 

The industry as a whole has 
been cushioned against the 
increase in costs by the firmness 
of the bullion price, but aware 

■ of the possible effects on the 
market of U.S. releases Mr. de 
Vuners is anxious that efforts to 
create new demand should con- 

Gold and uranium accounted 
for 14.5 per cent of General Min- 
ing s attributable income last 
year and its uranium capacity is 
increasing. There seems little 
doubt that the Langer Reinrich 
deposit in Namibia (Snuih West 
Africal wilt sooner or later be 
brought to production. 

v . pUot Plant has been estab- 
lished 1 to determine the optimum 
design parameters for a future 
recovery plant." as Mr. de Vii- 
liers put it. At the same time 
the group has. been continuin'' 
with marketing and financing 
investigations. 6 

Looking at other . activities 
within the group, Mr. de ViHiers 
said that demand for asbestos and 
chrome are weak and th^re is a 
surplus of capacity m the inter- 
national ferro-alloy industry At 
the same time Prospects for. some 
of General Mining’s industrial 
subsidiaries were unfavourable 
because of the low level of capital 
expansion and the restrictions on 
state expenditure. 

The shares were unchanged 
yesterday at £ 16 . . 


Production on a reduced scale 
has resumed at Rossing Uranium 
in Namibia (South West Africa), 
following a ffre Iasi Wednesday, 
which halted both the mine and 
the processing plant. Rio Tinto- 
Zlnc has a 46.a per cent bene- 
ficial interest in Rossing. 

An RTZ spokesman yesterday 
explained that one solvent extrac- 
tion plant had started working 
again. It was the second which 
was destroyed by fire and will 
lake six months to replace 
During this week the company 
will know whether it will be 
possible to continue production 
on a reduced scale, using only- 
one plant. It is not yet possible, 
however, to say whether produc- 

tion for the fuH year will be 
down by 20 per cent from the 
planned 4.000 tonnea of uranium 
oxide, as the company warned 
last- week. 

Agip foiled by 
Canadian court 

An attempt by Agip.' the Italian 
state energy group, to challenge 
the Canadian Atomic Energy- 
Board's implementation of an 
export pricing policy for uranium 
has been - foiled in the Federal 
Court of Appeal in Ottawa. 

The Court has ruled that it 
does not have the paw er to review- 
decisions by the Board as far as 
the issue of uranium export 
licences are concerned. Agip may 
take the matter to the Supreme 

. The arguments have been based 
nn a contract Agip . has with 
Madawsska Minn for. the supply 
of uranium oxide. The contract 
Is spread over several years, hut 
the price is settled on ah annual 

If the two companies cannot 
agree, a decision is taken by an 
independent exnerL For the 
1977 deliveries he decided on a 
price of US$30 .50 a lb. The Atomic 
Energy Board was not prepared 
to issue export licences at that 
price and required Agip to pay 
CS42 a lb. 

It is the Board's power to 
impose such requirements that 
Agin has been contesting. 

The Canadian . Government, 
which keeps a close control over 
uranium exports, made it clear 
last October that all sales would 
have to be made at the world 

S rices ruling at the time of 
elivery. Long term contracts 
merely commit Canadian uranium 
producers to deliver specific 
quantities at specific times. Mr. 
Alasrair Gillespie, the Energy 
Minister said. 

Madawaska is one of the smaller 
producers. It is 51 per cent owned 
by Federal Resources Corpora (ion 
of the U.S. and 49 per cent by 
Canadian Faraday of Toronto. 

De Beers has mine 

5 pend R39m (C-MSmi on a scheme 
to treat the accumulated dumps of 
The Kimlirrley diamond mines in 
South Afriru This will extend the 
life of the lindcryround mines to 
about £»» > oars. Mr. Harr) - Oppen- 
hciini-r. The chairman, told the 
annual meeung m Kimberley yes- 

Four of the six mines in the 
De Urer* Kim her ley division are 
Involve.!-— Dutoitspan. De Beers. 
Bultfonirin and Wcsselion. Their 
combined production in 3977 was 
1 frtm corats. At the present rate 
of mining rheir underground re- 
. serve., would have lasted seven or 
\ eicht 5 ears. 

* "We have established that the 
■ R-tri-uimont of certain of the older 
i dumps in and around Kimberley 
is et-.inonur.illy justified and have 
d« cideU to proceed mih a luofold 
pi.ui/' Mr i ippcnhcimev said. 

The first part involves replacing I mine f»vil to the treatment 
pt.-ni wiiii dump nnU’nn! and this 
»«>! •"•* .i ;■( ..;rly next The 
S'-, .'iid •.ia-.i' takes in the construc- 
tion «i mu ill plants, for 
t:« .itnicn: of Hie outlying dumps 
mid th.s will start in isiid'. 

1 vt-r 1 'ic long term production 

from the Kimberley mines Mill 
therefore be considerably greater 
than it might otherwise have 
been, as the mines are old and 
were in any case coming lo the 
end of their life. But some 
reduction of volume from present 
levels is expected, although this 
is not likely w be more than 10 
per rent over the next few years. 

There has been a marked 
improvement In recovery methods 
over the past 10 years and De 
Beers plans to bring these tech- 
niques into play on dumps which 
have built up since the turu of 
the century. It is the waste of the 
first 60 or 70 years which' is- 

The capital sum Involved is 
relatively small, considered' in the 
context of ihe group's expansion 
plan, but the social effects could 
be cmiMderahle by maintaining a 
continuity of employment in the 

Yesterday De Beers sltares 
Iradod quietly and closed 3p 
higher at 35Up. 


nfeonrem rales for April irn. 1T-I lonnrs 

•March 193 tonnes). Coltanhite 33 tonne* 
LMarch 31 (r-nnesi, 


Endeavour Resources, the 
Melbourne mining and explnrat.ion 
company, is extending its tin 
interests by the purchase of The 
Moolyella mine near Marble Bar 
in the Pdbara region of Wester 
Australia. The purchase price 
ASl.Ofim (£659.600). 

This covers 78 square kilometre' 
of mining tenements with- -wo! er 
rights and tailing leases, but 
details have nbi been worked out 
tor Endeavour’s takeover of th 
mine's Treatment plant and asso- 
ciated equipment. 

The purchase is a result of 
Endeavour's a-cnciai ion with P-nri 
Corporation, which j; Taking a 25 
nor rent slake in the company 
Pond arransed re/ie of tho loan: 
io fund Ihe purr base aril ihi 
takeover was made through us 

Endeavour is already Involved 
in tin mining with an operation 
al Emm.iville. New South Wales 
Its shares were 2D«p yesterday. 

French Kier expects 

pr ofit to top £6m 


WHILE THERE are slight signs 
of an upturn In the UK building 
market which have been reflected 
in the order book at French Kier 
Holdings, the heavy civil engineer- 
ing market remains flat, Mr. 
J. C. S- Mott the chairman, says 
in his annual statement. 

However, the group is fortunate 
in having a number of long term 
civil engineering contracts on 
hand which may see it through 
the current period of stagnation. 

Generally the group continues 
to receive an acceptable level of 
inquiries from which to replenish 
iis order book. 

Overall for 1978 Mr. Mott 
expects profits to be not less than 
the record £ 601 m achieved last 

French Kier continues to gain 
new business overseas, although 
competition is strong. 

The products and sendees com- 
panies of the group see the possi- 
bility of furthering the scope of 
certain activities and expect to at 
least maintain their market 

The property companies are at 
the begining of a more construc- 
tive phase, Mr. Mott says, and 
during the year will move forward 
certain projects which have been 
dormant .while past financial 
problems have ben resolved. The 
group is approaching the private 
housing market with some 

The reorganisation and reloca- 
tion of the group's management 
will be completed this year and 
consideration is being given to 
the future realisation or 
redevelopment of the business 
premises which will become 


At year-end, fixed assets were 
£1 9.83m (£lS.55tn) and net 

current assets £5m f£4.34m). 

Meeting. Waldorf Hotel, WC, 
June 23 at 11 am . 

Minster Insce. 
profit falls 
by £1.4m 

Pre-tax profits of Minster 
Insurance Company, a subsidiary 
of Minster Assets, fell last year 
to £4Jm from the the record level 
of £5.5m In the previous year. Mr. 
D. S. A. Pearce, in his chairman's 
statement, points out that trading 
conditions in the motor account 
were difficult in 1977, with a very 
low level of growth. This arose 
partly from competition and also 
from action taken to correct the 
performance In the motor cycle 
account which resulted in a signi- 
ficant reduction in the size of the 

He reports good progress 
during last year in the UK fixe 
and accident account with a satis- 
factory increase in premium in- 
come. There was, however, . an 
underwriting loss m ainly attribut- 
able to property ' business.- 
Although the group originally 
only wrote fire business In the 
UK, the scope of operations was 
extended last November to in- 
clude overseas business. 

The revenue account for motor, 
fire and accident shews an under- 
writing loss of £Z 2 m compared 

with a small profit of £90.000 In 
3876. The marine and aviation 
account made a profit of £560,000 
(£170,000). Investment income 
was more than £lm higher at 
£7m. but other expenses 
accounted for £ 1 , 3m compared 
with nearly £Q.7m in 1976. 

This ' increase, as Mr. Pearce 
points out, arose from the pur- 
chase of a new computer and a 
shortfall in . rent from the un- 
occupied part of the new head 
office building.. This . has now 
been let Thus the pre-tax profit 
came to £4.1 m against £5.5m and 
after tax the profit amounted- to 
£2.3 m. slightly lower than in 1976.- 
Dividends of £Vm were paid, the 
same as in the previous year. 

The life department reports a 
successful year; with an important 
contribution being made by the 
mortgage department in Its first' 
full year of operation. The life 
fund increased by nearly £0.5m 
during the year to £7m at the end 
of 1977. 


Since December last year Mr. 
Erich Markus, chairman of Office 
and Electronics Machines, appears 
to bave sold more than a fifth 
of his key holdings in the com- 
pany. The latest balance-sheet 
reveals! that Mr. Markus had sold 
190,000 shares between .the year 
end and April 24, and yesterday 
he announced -a "further" sale 
of 104,078 shares. This brings 
his holding down to l.lm shares 
(18 per cent) compared with 
1.4m (23 per cent) at the year 

Laing moves into local contracts 

THINKING SMALL is paying off 
in .the UK for John Lalng and 
Son, the international contracting 
and property group. 

Several years ago the group 
regional ised its building opera- 
tions, enabling it to compete 
successfully for smaller local con- 

And witb the civil engineering 
market now 40 per cent below its 
peak, the group is following suit 
with these activities and is now 
tackling smaller local contracts. 

Sir Maurice Lain?, the chair- 
man, says in bis annual statement 
that the group's Initial experi- 
ence has been - favourable and 
that 1 it is succeeding . In profitably 
increasing its share of the 
smaller market. 

Overall Sir Maurice expects: 
civil er.cineermg turnover in 1978 
to increase. But with the con- 
tinuing rundown of the Grain 
power station and the Lirtiebrook 
power ‘station, completion at 
Redcar and the shorter duration 

of the smaller contracts the for- 
ward secured turnover for 1979 ip 
relatively lew. 

On the .construction side, 
although it would be premature 
to say the UK construction 
market has considerably 1 im- 
proved, both the level of 
inquiries and the size of potential 
contracts are. beginning to 
increase. Sir Maurice says- He is 
hopeful of seeing a slow out con- 
tinuous climb from the trough 
of the depression reached at the 
end of 1977. But for some years 
to come be does not see the level', 
of construction activity approach-' 
ing Ihe boom proportions of Uie . 
early lB70s. 

With contracting, the overseas 
market is hardening and the 
intake of new work is not what 
directors would desire. 

Sir -Maurice hopes to make a 
statement at the AGM concerning 
the " proposed hiving-off of . its 
£S5.5m property investment port- 
folio and development activities. 
Directors are currently examin- 

ing, with advisers N- M. Roths- 
child and Sons, the feasibiUlv of 
forming, a new and independent 
listed company for the property 

. In 1977 commerciaT projects 
with a gross value of some £ 12 m 
were completed and let, and 
either sold or transferred to the 
. investment portfolio. Rent reviews 
'were carried out in the invest- 
ment side, and these will augment 
rentiT income' by more than 
£0-9m per annum. 

Development work in hand is 
considered satisfactory and the 
outlook for the next two years 
appears reasonably good. There 
are good' prospects also for Main-., 
taining private housing activity 
at a higher level in 1978; Some 
improvement in margins is 

"During the year there was a 
£l4.97m decrease in net liquid 
funds against a £146m increase 
in 1976. 

Meeting, Hemel Hempstead, 
June 22 at 2.15 pm. 

The Society of Company 
& Commercial Accountants 

The Fourth Annual General Meeting of the Society of 'Company arid 
Commercial Accountants was held In London on 22nd May. The 
President, Mr. G. F. Wolland, FSCA, MBIM. referred to the achieve- 
ments that have 'been made over the previous four years in con- 
solidating the three participating bodies. The Institute of Company 
Accountants. The Society of Commercial Accountants and the Cost 
Accountants' Association, into the new Society and stated that he 
was sure that his successors would continue to expand on the 
foundations that had been so firmly laid. 

Mr. Wolland stressed the fact that there was a great need for those 
accountancy bodies outside membership of the CCAB to co-operate 
on matters of common concern and that talks will be held in the 
near future to this end. He reiterated that there was the necessity 
for the distinction, between the Public Auditor and the employed 
Accountant but stressed the fact that the distinction of the qualifi? 
cations of the employed Accountant outside of the Chartered bodies 
and inside the Chartered bodies was' purely one of acceptance rather 
rather, than of fact. Whilst accepting, the 5SAPs issued by -the 
Standards Committees^ Mr. Wolland stated that in not all- cases 
were they applicable to the medium and smaller bodies and that it 
was the duty of the Society and similar bodies to guide their members 
not only on these. standards but on new legislation in the field of 
finance and company law. . 

Mr. Wolland thanked his Council and Staff for their service during 
his four years term of office- 



Profit for the year 
Share of trading loss of associated 

Profit before tax and extraordinary 

Profit after tax 
Extraordinary items 
Profit of the Group available after 
tax and extraordinary items 
Cost of dividends 
Earnings per 25p share 



£ 000^3 













~ 74S* 




S33 : 


160 .- 

15.14p f20.B4p 

fThe 1 976 earnings per share ere calculated on s smaller number of sham m 
adjusted for the eights issue. . . * 

Extracts from the Chairman's Statement: — •- 

* 1977 was another good year. However, during the second 
half year our tanneries, and the industry as a whole, have had _ 

- to face not only the erosion of margins in the sheepskin 
industry but also the import of cheap bovine leather, shoes 
and clothing from the Far East and South America. 

* These problems have persisted and we have made a poor ..*• 
start to 1 978. However, with the wide range of our business % 

■ . we feel, well placed to take advantage of the upturn When it. V 
" • ‘ arises, particularly as 1 977 has been a year when the Group “ 
has paid a great deal of attention to improving its technical 

A.G.M. Piccadilly Hotel, London W1 
1 2 noon, 22nd June, 1 978 

Capras of the A&oaots an nailable frost the Secretary. Treat Bridge laatbir Worts. Notts SS23BT 

General Accident Fire and Life 
— Kmou investment Office has 
inrrr.i'.rd ns bolding by 110 . 111*0 
iv.imnry .shares lo 12.1fim |7.4 
j-«-r ccsit). 

CuLt-tm-ad Robey — Mr H. G. S. 
ilro* <• - h,« • acquired 2.5iiti ordinary 
and now own- 121.290 in 
his nvi ii n;me ami in . 000 in the of Gentleman's Row lnvesl- 
nifiu Company 

Carpets lull. — Mr. S. F. 
Townsend, a director, has pur- 
ch-, s»*ii a.J7ir ordinary 'Hares. 

Leisure Caravan i’arks — I’. VT. 
Parris :ind- U C. R. Allen, both 
cJirerrurs. have each sold 30.000 

Wai ner Holidays — Nnlilird of 
th>- fnllnw-mg transactions by 
dii«H*!or' — Mr. E. II. S Warner 
mi May IS. tioiiTht 1S.09P. ordinary 
shares ami May 17, &alii IS, 093 
"A" urdinnry: Mr. H E. A. Warner, 
on M.:> i:,. ho>i::lil 2 .V(HHi ordinary 
0 »i<! i'll May l.i. sold to Oflii "A" 
and nn May 17 sold l.T-Offl* "A": 
Mr .1 n C! Warner bought on 
M..v ]."». 25 000 ordinary and on 
May 57 roh! 2.\onO "A"; Mr. 
II C. A. Warner. Mr. J. O. C 
W.'n-r-j- sml annihrr ttruMcesj on 
M.i« IS b"ugbl 6.907 ordinary and 
on M iy 17 julrt G. f <07 “A." 

Hunt and M»M*rnp (Middleton) 
— V s-hown lh latest arroiints. 
2.220 741 ordinary shares held by 


Williams and Glyn's Trust Com- 
pany as trustees of the settle- 
ments created by the late Mr. 
E. F- Hunt. As a result of the 
death on January 6 of the late 
Mr. Hunt's widow, Mrs. N. Hunt, 
the trusts have now pome to an 
end and two of the beneficiaries 
entitled to participate in the final 
distribution are Mr. E. W. Hunt 
and Mr. G. A. Hunt. Mr. E. TV. 
Hunt and family wilt receive by 
transfer 740.247 ordinary and Mr. 
fi A. Hunt will receive by trans- 
fer 740.247. 

Bryant Holdings — Mr. R. H. D. 
Hawkins, a dirertor. has sold 
15.000 ordinary shares. 

C E. Heath and Co.— Mr. J. J. 
Burton, a director, has become 
intvrcslcd in 30.000 ordinary 
shares following the exercise of 
his option under tile share option 

Assam Trading (Holdings) — Mr. 
J M. Guthrie on May 25 on behalf 
nf 1965 settlement t trustees J. A- 
Driver and C. F,. Free) purchased 
1.100 "B" stock units. Mr. J. 
Guthrie on May 25 purchased «n 
behalf of his three children. Miss 
S. Guthrie. P. J. Guthrie and 
R. Guthrie. KO0 "B" stork units 
each. Total number or “B 
sint:K units purdinrod 3.500. 

Bank of Scotland — Kuwait 
Investment Office h;«s acquired an 

interest in a further £30,000 stock 
units of £1. Making its total 
holding £1.905,000 stock (5.907 per 

John Carr (Doncaster) — Mr. 
J. R. Woolley, a director, has sold 

Turner' M a n u f a c 1 u r Inc — 
Received notification that on May 
Ja, ordinary iliares field 

non -beneficially by Mr. R. B. 
Dumbell and Mr. D. F. Dumbell 
as exeruinrs nf the pstate nf th 
late Mr. P. B. DurnbvU were distri 
buted to the beneficiaries and 
rease tn be included in [he non 
beneficial interests of Mr. Dumbell 
and Mr. C. F. DumbeiL Of these 
shares, fi.667 were tranaL-rrod t 
Mr. K. F.. Dumbell as a benefi 
ciary and G.cnr were transferred 
to 'Mr. C. F. Dumbell as 

Edward Jones (Contractors) — 
3D. and Mrs. Edward Jones h?ve 
sold 145.000 shares reducing their to 575.427. 

Dawson InIL — AVoodbnumP 
Nominees on May 22 held 2,769,237 
ord shares. 

John .Henries (Hides). — Mr 
J. M. .Menries now has an interest 
in family trusts amounting to 
540,516 ord shares, his interest in 
the ord shares of the company is 
now as follows: PrrsonaT 1,655.762 
and trusiec 2 049.846. a total of 
3.705.506 (26.79 per ccftt). 

Extremely large help 

ante nf England Minimum 
ending Role 9 per rent 
(since May 12, 19781 
i-cnunt houses chose yesterday 
lakv-up most of ihe Treasury 
h.>U'.:Iit at Friday’s tender, 
s cau.icd a fairly seven? short- 
of day-today credit, and the 
hnritics cave assistance on an 
renrely large scale. The Bank 
En eland Imur.Ht an extremely 
:c araiKim *;f Treasury bills 
n the houses and a small 

number of local authority bills. 

The only factor working m 
fat our of the market was surplus 
balances carried over the week- 
end by the banks. 

Discount house* paid ground aj. 
per cent for early secured 
and closing balance* were taken 

at 7-8 per cent. . . 

In the interbank 
ntehl loans "P*' ned n 
cent, and row to "in 

before casing to P** f*" 1 
the afternoon, and closing at 

8-84, per cent 

Fixed period Jnterest rates 
were fairly steady for the shorter 
periods, with the three month 
interbank rate tradins at about 
9J-9} per cent throughout 
Longer periods were generally 
firmer however, while the houses 
buying . rates for thrcc-rr.nmh 
Treasury bills pointed towards a 
probable rise in the bill rate at 
this week's tender. 

Sates In the table below are 
nominal In some cases. 

" IpvbI L>«i'‘ AuUi.J F '°’" IC S 
Anihnmv orE""" 1 ''* 

detnuU i l«i4» ! nrpmltt 

I Discount 
I.Ytuiwny i itiarkri 
Deposit , 


Bilh * 

Eligible I 
g«nfc ;Fm^Tr*fU 
Bui»4- Bill** 



9i» r 7 M 
vi 3 eU-sia , 

-T ! ? B,B 


H5 4 

_ . j BAi 

8 *-eft { 8^-9 

03* 91z 

' " — .Hct-a seven liars' ftwd- loms-irnn local anthoriiy niprtfiMo ra 

iral auUirorii-s and Snancr heutrs seven year* I2W24 on ‘J 011 - JLShffUSI 1 

ii , 3 rime i+an 111 - 1 ; per ccm; (our **an *^* 7 * bills 9 V-W per ■» 

1 ^ a.niM t Litre tar wuriamKiw B *r** iwo-mawh stsl per conr. aw uiree-nioa 

iiij Hir-v >var» iii-15 per era: tour *7™ ' £,1* 

r»!<v t.q ptinir paper. Sin ins tales sim 

rruximai- acilma Mle# tor onenuwUt Treasury hum per «*«*, «*>“ imr™.— ■ «. «• — — 

x: per emi Appmsimalr kMIhie raw for 9 per am: and also uirw-mooUJ M*l £SS- 

= per cent, une-nocitt trade hills *i P |,r rent, two- AK:4rK -iQuoni rj pc’" Wil (ram May L JM. Clearing Sank 
” AJZ Saw hv mcJ-inanH- Bank Barn-Ban* for leaUM-O per-cem, Traasanr 

t Rim nor <nwfl an»s at *erca dan nouo-> .« 

Average lender rates of tucowu S.4SZ3 per ceaw 





■ % H 



During'1977 Deutsche GIrozentrale - Deutsche 
Kommunalhank- (“DGZ’Ja^in improved its overall 
penbrmance. Business volume increased by.DM ; 15 
billion to a total of DM 20.7 bilJion.7his growth vk$ : 
mainly attributable to further expansiorron the whole- 
sale banking operations. 

With a "banking tradition dating back to 1913. - 
DGZ strengthened its position as a bankers’ bank 
with special emphasis on domestic and international 
medium.and long-term finance to corporate clients, 
govemments I .siate agencies as well as central banks. 

Underwriting operations agsin developed very, 
fevora bly. with the Bank participating in nea rfy all 
Euro-DM loans as well as injnost other Eurocurrency 
syndicates and an impressive number of private 
placements. Ail in all, the Bank was a partner in 262 
Joans to foreign borrowers and in 14 equity issues. 

The Bantfs medium and long-term' lending 
potential was greatly enhanced by the favorable 
situation on. the German capital market on which 
DGZ places its own issues with a broad clientele 
of institutional and private investors. 

Securities trading achieved a^in a con- 
siderable increase and a steady flow of newly 

acquired clients both at home and abroad played 
an importantro!a v.-._ \ 

Highlights from 1977 

DM minions 

Balance Sheet Total 


" Due from Cradit'ln'stftutions 


Debenture? and Bonds 


Receivable from Non-Bank Clients 


Fixed Assets . • 


Deposits from Credit Institutions 


Deposits from Non-Bank Clients 


■ Own Debentures, in Circulation 

’ 11,280 

Capital and Published Reserves 


Surplus from- Interest and Commissions 


Personnel and Administrative Expenditures 30 



Net Profit 


DGZ International SA, a wholly-owned Luxem- 
bourg subsidiary increased its business 
volume to DM 4' billion with the bulk of its 
operations in Euraloansand in the interbank 
money market 



Deutsche Grozentrate 
Deutsche Hbmmurialbaiik 


TaunusanlagelO, R0. Box 2686, 6000Frankfurt/Main 1 
West Germany ^ TeL ^ 2 693],Telec 6414168 

fhe’temaU”team wfih big resources 



r ■■ l ■ - 


£7 for BSM: 

Ellerman Lines fails 

Armstrong Equip. 65p 
offer for Comercroft 

Jacobs wins 


In a surprise move yesterday, 
Armstrong Equipment acquired a 
near 34 per cent stake in Comer- 
croft from two groups of share- 
holders, and announced a fuU 
scale bid for the Coventry 
engineering group where Board- 
room /shareholder rows have been 
flaring since 1976. 

The offer price is 65jp in cash 
and the shares (which rose 3p 
last Friday) lifted 9p yesterday 
to match iL This is the same 
price as Armstrong paid yester- 
day for the 24 per cent stake 
owned by associates of Mr. Denzil 
How, who spearheaded the 
attempt to change the Comer- 
croft Board at the end of 1976. 
A further 10 per cent was bought 
from Mr. Peter Berry and asso- 
ciates. Armstrong had earlier 
bought 25,000 shares taking its 
total stake to 34,79 per cent, and 
later in the day purchased a 
further 88,000 at the same price, 
increasing its holding to 38.31 per 

Corner-cr of t's reaction to the 
bid was not immediately known 
yesterday, though it is believed 
that an earlier approach from 
Armstrong had not been wel- 
comed. The position has now, 
of course, changed with the share 
purchases, and the Comercroft 
Board and its advisers. County 
Bank, are urging shareholders to 
take no action while the offer is 
being considered. 

For the Board Air. .Tim Hart- 
well, the chairman whom Mr. How 
and friends tried to depose, holds 
just under 9 per cent of the equity 
and institutions, including Scot- 
tish Amicable and Wesleyan and 
General Assurance, together with 
nominees of Charterhouse Japhct, 
control 16.3 per cent. 

The offer price represents an 
exit p/e of 12 on last year's 
stated earnings for Comercroft of 
5.4p. These earnings were based 
on pre-tax profits of £260,000 for 
the year to September, a decline 
from the previous year. The com- 
pany’s profits have fallen each 
year since 1974 when they were 

a record £373,000. 

Since the year end Mr. HartweH 

has announced a re-organisation 

programme for the Joss making 
subcontract engineering business, 
plans for the sale of the Conlngsby 
factory, and record orders for 
pumps and agricultural equip- 

Armstrong's profits for flhe last 
full year were a record £6.2fim 
and since then interim pre-tax 
figures to January 1 have shown 
a 49 per cent increase to JHm, 
including a £}m first time contri- 
bution from two recent acquuutJ- 
tions. Crane Screws and Ormond 
Engineering. In April, Armstrong 
made a further acquisition for 
£830.000 — the BTR subsidiary, 
Gandi Frictions, which makes 
brake and dutch Ifnlngs. 

bidder, has increased his holding 
in the company to just over 33 
per cent His personal holding 
amounted to 20.25 -per cent and 
yesterday it was learnt that Zip- 
noll. a private company controlled 
by him, had bought a . further 
500,000 shares (44 per cent). 




Electronic Rentals Group, the 
television rental company operat- 
ing through the Visionhire chain, 
has agreed terms to buy Sapertek 
the Bournemouth based tele- 
vision rental company for 

ERG which was subject of a 
reluctant and abortive takeover 
bid from Phillips Electronics last 
year, is to pay £276,000 in cash — 
the remainder in shares — for 
Supertel which operates eight 
branches in the Bournemouth 

Supertel’s last annual accounts 
for the year ended January SI. 
2978 showed net tangible assets 
of £696.000 and pre-tax profits of 

Phillips was forced to launch 
a bid for ERG last year — under 
City Take Over rules — after it 
increased its stake to just above 
the 30 per cent level. 


Mr. D. T. C. Caldow. the chair- 
man and managing director of 
Bnmdene Investments, the pro- 
perty development and caravan 


Eamiqgs of £L7m for Jokal Tea 
Holdings and £l_2m for Loug- 
bourne Holdings are forecast in 
the merger document seat to 
shareholders yesterday. 

Under the terms of the pro- 
posals, former Jokal holders will 
obtain 58.4 per cent and Long- 
bourne holders 41.6 per cent of 
the new company Lawrie Planta- 
tion Holdings. The new company 
will. If the scheme goes through, 
pay a special interim dividend of 
15p per share in September. 

Mr. Grant of Duncan Lawrie, 
adviser to the LPH, said yesterday 
that the two companies’ stock- 
brokers had negotiated In detail 
over the terms of the merger. 
The rationale for the terras they 
eventually agreed is not shown in 
the document. Some of the diffi- 
culties in their path are shown in 
the footnotes. 

The Jokal Board states in note 
3 of Appendix 1 that the profit 
available fbr distribution “ is 
subject to any limitations on 
remittances of profits from subsi- 
diaries imposed by the authorities 
In India and Malawi.” And Hurt, 
at present, “ permission to remit 
profits from Lidia is being with- 
held pending clarification of the 
taxation treatment of the secre- 
taries’ commission paid in 
previous years.” 

Similarly, the Board of Long- 
bourne states in note 1 of 
Appendix 2, “ in view of the diffi- 
culty of assessing the value of 
property in Bangladesh ... it is 
not practicable at the present 
time to place a meaningful valua- 
tion upon the subsidiaries* com- 
panies' tea estates." 

The three-month manoeuvring 
for control of the British School 
of Motoring with its captive new 
driver -car buyer market ended 
yesterday with the announcement 
from Shiger and Friecflaader that 
Mr. Anthony Jacobs and associates 
will pay £7 cash a share for the 
capital of the companies that con- 
trol BSM< The offer values the 
companies at £3.5m. 

But the ultimate victor in the 
behind the scenes struggle for the 
right to supply BSM with the 
1.500 vehicles a year it uses to 
train drivers has. yet to be dis- 
closed. It was earlier announced 
that, should the Jacobs faction 
carry the day British Leyland 
would sign a deal to supply 
vehicles for the next five years. 
Singer and Ikiedlander yesterday 

indicated that the financing of the 
Jacobs bid was not dependent on 

Mr. Jacobs and associates have 
acquired or agreed to acquired 
excess of 90 per cent of MHFs 
capital It Is understood that the 
acceptances are irrevocable. Mr. 
Thomas Kenny, Dorada’s ctour- 
man bowed out of the bay • 
yesterday with the comment that 
he had “'no intention of getting 
involved in a Dutch auction- 

Rosehaugh on 
the move 

By Christine Molr 


chairman of the privately held m^97S. ^ut Invcstiuent preu rJj. 

shipping, brewing and tnreel *&ision cemtribo red with short and 

agency group, says that Profit s®™ C3tpcct ed results. 3L* ‘ duwxl 


against freights earned in weak mter^ charg reaJJsfid exchange wr.'j}- 

U.S. dollars, strikes by dockers in to JK-22m ana -mnwier ■ 

many areas and the impact of rate losses of £i. uoiiu of p roflt .,-._~T 

cutting by Eastern Bloc «mntnw Jbc ■ boup “ t ^f^con- ££,. * 5? SS 

affected results. ■ . , rationalisms --place jnSmi ‘imme — — «n:J5 

I He says that in the last four ventiomd ships. aj**° iunMe - IfggGS 

| months tie shipping amjon the J 1 « ■'““T'Sf'but «»» -IMkS 

months the shipping divialqn them with contamenwo ^ m— w y 

retorted unretMartorr resulK m josd vasels. ^ *gj *2 

all the trading operations semd ^ g, e ;— 

by conventional ships. the jear retatw w F redundancy Tn mmuniks 

The picture would have been fleet rationalisation. reuu ^ Ktfra0 nniiaiT low - - f jfi 

blacker but for the performance and dosnre costs. . AwrsMuMe — - — ■“ t| 2* jw 

of the containerised operations For the future *5!;, &uuuct 

and the mm profit (£0.7m) from does not “Jg- ■ ■.*- “■ 

ti *On a the°trave^%ide there was a STlfffS^or perhaps for the next ^54 —J 

S 'SFSSf acq^S P Bffl 1978 winbe too -n » 

Case group contributed £0Bm. to see effective returnsfrom • Bros, and KSA. 

On the brewing front J. W. short sea trading foltow in,, Smrth and 
Cameron and Co. pushed turnover introduction of new «onti*m 1 r fromKast Side. Tyne uock, SHBt 
SMm hisher. /hUe profit in- ships, th. h««Jf* be Shield! 

creased slightly after all expenses* apparent from 1979 onw^ra&. ... 

The newly acquired Tollemache On the . bre ' vl ”^ t should flow ASSOCIATE OEAX 
and Cobbold Breweries returned a Increases m pro»t snorna OB Uay ^ Caxenove and th, 

final quarter profit at the. level from 1 tfaa «2)Sul yeark bought 25.000 Pttrit Patna ^ 
anticipated prior to acqaiation. and infranl dy have 6G3p cumulative dividend far % 

The fransport division increased expected. Bookings already flf lfae 

turnover 5 per cent and profits been - n Jnsur ance Northern Foods SttpenuunrtUaa 

by 76 per cent but the Increased Marme and at mtion msu™ 
cost of the TbiwiKh operations activities are tied to the tuonuun ruu 

an exclusive supply deal with any 
particular manufacturer. 

BSM is currently controlled by 
two companies, Taurus Vehicle 
Leasing and Mansion House 
Finance, which have exactly the 
same shareholders holding. similar 
numbers of shares in each. Mr. 
Jacobs, other directors of the two 
companies and their families are 
understood to control slightly in 
excess of 50 per cent - of the 
capital of the two companies. 

As a result of the successful 
offer, Mr. Jacobs- and . as yet 
unnamed associates will buy out 
the other shareholders of Taurus 
Vehicle Leasing which wfl] then 
bid for the shares of Mansion 
House Finance. The bid values 
t he joint holding in TVL and 
MHF at £7 a share and matches a 
revised bid from motor vehicle 
distributor, Dorada Holdings. 

Dorada raised the stakes late 
last week when it informed MHF*s 
advisers that It was prepared to 
pay £7 a share provided the 
increased offer was accepted by 
7 pm on Friday, May 26. 

The MHF board, of which Mr* 
Jacobs is a member, was meeting 
on Friday afternoon. It was 
informed of the increased Dorada 
offer and of the decision by Mr* 
Jacobs and his associates to match 
the offer. 

In its statement yesterday 
Singer and Fried! and er says that 

A S52J550 investment in two un- 
quoted property companies last 
year now looks as if it will trans- 
form Rosehaugh Company, the 
investment group m wruen air. 
Godfrey Bradman has just under 
50 per cent 

Yesterday the shares were sus- 
pended at 182p with the company 
announcing that it intended to 
publish information which was 
likely to result to -substantially 
enhanced values, to its unquoted 
investments which in turn may 
affect the company’s future .” 

Judging by the improvement m 
the share price over the last 28 
months the move has been ex- 
pected for. some. time. From a low 
of 18p to 1977 the shares rose to 
130p and since January they have 
risen again to the suspension 

Last year Rosehaugh bought a 
20 per cent stake in Tannergate, 
for £52.000 and a 28.3 per cent 
stake in Vokebourne, for £850. 
Both companies are unquoted pro- 
perty investment concerns in 
which the other known share- 
holder is Bernard Sunley Invest-, 
ment Trust 

Tannergate owns a £15. 5m port-, 
folio of 1,200 flats, plus shops and 
office investments, purchased from 
Legal and General in March 2977. 
Vokebourne, through its sub- 
sidiary Vi p vale, paid £11 .25m in 
July for the freehold of Maple 
House m Tottenham Court RoadJ 

At the time Vipvale was said to! 
be controlled by Sunley and Lon- 
don Mercantile Corporation, of 
which Mr. Bradman is a director., 

Difficult start for Dunlop 


8'U% Notes Due 1984 

had remained difficult at Dunlop 
Holdings, said Sir Reay Geddes, 
the chair man, who told share- 
holders at yesterday’s AGM that 
be was cautious about the full 
year results. 

He said that there bad been 
little recovery in UK consumer 
spending levels since 1977, and 
that the European tyre business 
was suffering from intense price 
competition because of over 
capacity, the effect of oil prices on 
vehicle mileage and Increased life 
of steel radial tyres. 

The following are extracts from 
statements by chairmen to other 
recent annual meetings. 

John Menzies (Holdings) — Mr. 
John Menzies, the chairman, said 
that sales for the first quarter of 
the financial year are on budget. 
Losses in newspaper revenue due 
to Industrial action have been 
more than replaced by increased 
sales of other goods. As a result, 
the previous forecast of an 
Increase in profits for the year 

remains valid. _ 

D ickinso n Robinson Group -- 
The chairman said that the 
improvement in both orders and 
sales in the UK which began 
towards the end of the first 
quarter had continued and 
activity bad generally increased. 
The industrial relations disputes 
which caused profit shortfalls in 
the early part of the year are 
past and productivity has 

Overseas, all group businesses 
have made n good start to the 
year with Canada once again 
trading profitably. 

Though the directors arc plan- 
ning for an improving perform- 
ance during the year, taking into 
account the Tow level of activity 
In the first quarter they do not 
expect the first-half results to he 
better than the second six months 
of last year. 

Francis Industries — The chair- 
man said that the company’s 
performance at the half-year will 
be sufficiently good to warrant an 

increase in the Interna diridcuL 
and he was satisfied that terh 
company in the gmnp was 
suvngly enough placed in its omt 
industry to prosper .freqa aa tha 
opportunities that will srtM for 
the further expansion of tba 
business in the next three te Ass' 

London United Investment 
Sir George Bolton, the dUp 

end of the year amounting to 
£lm. It is understood that the. 

ORION BANK LIMITED announce that notes for the amount of U-S. $2,067,000 have been drawn in the presence of a Notary Public, for the redemption msttfanaitt'dcM 
1st July, 197S. 

The numbers of the notes so drawn are as follows: — 

3 194 






































































































































































































































































































































































23415 . 

32883 . 
3718S ‘ 

. 24026 

37414 . 

2431 Z 



Company's Capital Lire 64,674,426,000 

Registered at the Milan Tribunal Chancery uniter So s Ml 40257 


OF APRIL 29, 1978 : 

On 1st July, 1 973 there wiU become due and payable upon each note drawn for redemption, tbs principal amount thereof, together with accrued interest to said date at the 
office of > 

ORION BANK LIMITED, 1 London Wall, London EC2Y 5JX 

or one of the other agents named on the notes. 

Interest wflt cease to accrue on the notes called for redemption on and after 1st July, 1378 end notes so presented for payment must have attached fin coupons maturing stib- 
•eauent to that date. 

Redemption Instalment due 1st July, 1978" U.S. $2,700,000 
Drawn as -of 1 5th May, 1 973 2.081 .000 

Purchased 639,000 

The Ordinary and Extraordinary Annual General Meeting of SNIA VIS* 
COSA was held on April 29, 1978 under the chairmanship of Awocato 
Luigi Santa Maria. Tlie Company’s turnover amounted to Iit.632,000m^ 
with an increase of 18.2 per cent, w r hile the sales figures of the Group as a 
whole was Litl, 144,000m., with an increase of 10.3 per cent The 
negative results of the year under review which caused a net loss 
of Lit47,000m. covered by drawing on a revaluation reserve, was caused 
by a negative trend of the Chemical Fibres and Textile Processing Divi- 
sions. Other Divisions (Chemical, Engineering, Defence and Space Divi- 
sions) and the hydrocarbon and agricultural sectors achieved positive 

In the course of discussions the President pointed out the reasons, already 
illustrated in the Report, for the depression of the whole chemical fibre 
sector both at national and international level. In the last three years 
this crisis cost the European companies a global loss of 3,000m. dollar^ 
This explains the initiative by the EEC, proposing in the person of its . 
commissioner Davignon, to arrest, by a direct and voluntary agreement 
among producers, the growth of production and to reduce the existing 
excess production - capacity in order to balance within the next few years 
the production/capacity ratio, and thus to gradually re-build the market 

On reviewing the state of Ita l i an industry and particularly of Snia, the 
President pointed out that any solution of the crisis necessarily implied 
a coordination with the activity of other producers. However, in spite 
of various plans both by private and public sectors, no concrete solution 
has been found as yet And to find a solution is both urgent and indis- 
pensable, given the importance of the sector as well as of the Italian tex- 
tde manufacturing industry substantially contributing to the Italian trade 
balance^ In Italy too as in the rest of the world, there exists today an 

“ 6nCy demand ta A* fibr e sector, which is even 

more senous than elsewhere owing to the prevailing of nolitical 
considerations over technical economic ones whidi resulted in aKS 
son of plants without any economic programming. SNIA has not con- 

2 SJ oZf ^ bUt MW “W for the ™ 

To meet these errors, the President declared, a further management 
decentralisation was necessary, by establishing companies S wS 
take over the activities of single Divisions TW<f u . w ° ^ 
major changes in responsibly^ akT * ould bnDg about 

through possible agreements with third partied Las^ 11 ^ 41 °f, era ^ 0IlS 

puny’s under-capitalisation the President *P ven ^° m " 

sources of income separate from production mocp 05 ^ ^ ltei f ati y e 
the formation of banking consortia to act as 311(1 alS0 « • 

financing replacing the prese^Sditi£n C £ * 31131111615 forSelf '- 

The Ordinary Meeting unanimously approved ^ .. , 

Sheet and the Profit and Loss AcJunt^dL^^* 6 
modified a number of items of the Company’s bI Mee f<’ 

administrator Ing. Pier Giorgio Gatti, already c^S theS ” ' 

US. 637.300.000 nominal notes wiS remain outstanding after 1st July 1978. 
1 London Walt London EC2Y5JX. 



man. said that the compeii* would 
continue to show a high rate of 
profits growth. \ u: 

He also commented that; there 
had been property sales since the - 

property portfolio is now do*n 
to £4 im. ' '- "• 

The Board watt -fiohliaiftag to 
explore every avenue that COOld 
enable the group to increase Us 
dividend beyond the Treasury, 
limits. Despite tire fact 
sonic 90 per cent of profits come 
from overseas the company has 
not yet been granted any relief 
from dividend restraint, ha added* 

the 1 

tret!;; •* 

Si \‘ > 




j O M 

Tinancial Times Wednesday May 3 i 1973 



Max Factor president New Globe 

quits as profits decline merger plan 

Long-term optimism 
at Massey-Ferguson 


MR SAMUEL KAL1SH. the pre- 
sident and chief executive of Max 
Factor and Co., is to step down 
on July J. The parent company, 
Nnrton Simon, is disappointed 
with Max Factor's earnings per- 
formance in the IJ.S. 

Mr. Knlish is the second Max 
Factor chief executive io depart 
because of dissatisfaction at 
Norton Simon since the cosmetic 
conipan> was acquired hy the 
cTnqlomcrale in 1973. Mr. Chester 
Fircslein was recruited to nirt 
Max Factor shortly after the 
acquisition but two years of stag- 
nant earnings were followed by 
his departure in December, 1975. 
-Mr. Kalish was then brought over 
from the presidency of Revlon's 
International division in May 
1976 and he introduced a sweep- 
ing development programme 
which was notable for the intro- 
duction of new product lines and 
the departure of up to 75 Max 
Factor executives. 

Initially, this approach seemed 
to help boost Max Factor's pro- 

fits and the division w as 
rewarded with a warm tribute 
in Norton Simon's 1977 annual 
report which spoke of a 
“ strung thrust” in fiscal 1977 
profits which represented " the 
first significant return on invest- 
ments we have made in our 
cosmetics and fragrances busi- 
ness during thp last three years.” 
Cosmetics accounted Tor’ about 
20 per .cent of Norton Simon’s 
sales in 1977. 

Norton Simon expected the 
momentum to continue but a 
warning that ail was not well 
came in the company's interim 
report to shareholders for the 
nine months ended March 31. 
197S. Mr. David Mahonev. Nor- 
ton Simon chairman, said that 
a high level or domestic adver- 
tisinc to promote new products, 
coupled with a repositioning of 
the basic Max Factor line in 
department stores had had “an 
unfavourable impact on profita- 

Announcing Mr. Kalish's de- 

NEW YORK. May 30. 

parture today. Mr. Mahoney said 
that cosmetic operations In 
Japan, the UK and other inter- 
national markets were doing 
better than last year, but "a 
disappointing U.S. performance 
will result in lower earnings for 
Max Factor and Company this 

The Norton Simon chairman 
is generally credited with the 
growth of the company In the 
past nine years during which 
time sales have doubled to gl.Rhn 
and earnings ner share have 
leaped from 86 cents to $1.93. 
Almost the entire emphasis is on 
consumer products with Norton 
Simon interests ranging from 
food manufacturing, through the 
fashion designs of Halston to the 
car rental company Avis, which 
was acquired last year. 

Avis is expected to contribute 
about 15 to 20 cents a share to 
Norton Simon's earnings, which 
Mr. Mahoney said todav would 
appro vi male $2.25 a share for 
the fiscal year ending on June 30- 

Esselte wins control of Dymo 


. tries, the San Francisco-based 
labelling machine maker, decided 
over the weekend to recommend 
acceptanre of a takeover bid by 
Essche. the Swedish concern, 
thus ending a two week skirmish. 

The announcement means ihat 
Esselte. whose interests include 
paper and publishing, has greatly 
strengthened its position in the 
US. office equipment 3nd 
stationery business, where it 
already had a foothold via its 

subsidiary, Oxford Pend a flex, the 
maker of office filing systems 
which it bought two years ago. 

When the Swedish company 
made its surprise offer in mid- 
May of $24 per Dymo share. »t 
was rejected, and for the next 
ten days there were no develop- 
ments. Only 24 hours before the 
expiry of the offer, however, a 
Los Angelos household goods 
maker. Davlin. suddenly pro- 
posed a $30 a share offer, which 
Dymo immediately accepted. 

Kennecott meeting delay 

THE adjourned annual meetinc 
of Ken n eroti Copper Corpora- 
tion whirh had been postponed 
until today has been further 
postponed until June 14. 

TIip postponement is to allow 
Kennecott to receive the final 
audit Retires in its proxy fight 
with Curii<«-\Vricht Corporation. 

Kenn«*cr*tt’s auditors said that 

NEW YORK. May 30. 

ihey were in the process of 
reviewing proxies with lawyers 
for both companies. 

Last week. Kcnnecoi i said 
that its li«t n f directors had won 
over Curtiss- Wright's dissident 
croup Curtiss-Wright said that 
Kennecott had won 53.2 per cent 
nf thr vote. an d Curtiss-Wrighl 
J«.7 per cent. 


NEW YORK, May 30. 

Within minutes. Esselte 
matched the higher offer, only rn 
see Dayiin withdraw as suddenly 
as it had appeared. After that, 
it only needed Dymo . to 
approve Esselte's higher bid for 
the deal to go through. 

The final price fag for Dymo 
works out at some $B2m. com- 
pared with the $4 5m Esselte first 
offered, though the Swedes are 
not insisting on a minimum 
share tender. By the weekend 
they had 54.4 per cent of Dymo's 

Esselte's expansion into the 
U.S. office equipment market 
comes at a time when it is 
showing strong growth and above 
average profits. 

Dymo’s revenues have been 
increasing by about 10 per cent 
a year, reaching $210m last year. 
However, .its performance was 
below average because of ill- 
advised diversification into 
laundry* services, art supplies and 
laser phototypesetting tech- 
nology. Most of these were 
recently sold off. 

NSW YORK. May 30. 
environmental - controls con- 
cern, has made an offer to the 
Board of Globe-Union, the car 
battery maker to merge the 
two companies. Globe recently 
agreed s merger with Michigan 
electrical components maker 
Square D. Johnson has also 
acquired an option from UV 
Industries to purchase the 
iatier's lm .common shares 
of Globe-Union — representing 
about 16 per cent of the out- 
standing— for 540 per share in 

The option expires by June 
26. unless by that date Johnson 
and Globe have reached a 
merger agreement or Johnson 
has made (be necessary 
Delaware notification for a 
tender offer for lm Globe- 
Union common. AP-DJ 

ITT appeals 
on payments 

By Our Own Correspondent 
NEW YORK, Mae 36. 
and Telegraph .Is to appeal 
against a , Federal District 
Court decision which would 
allow the Srenrilies and Ex- 
change Commission to 
a complaint accusing the 
conglomerate of failing to dis- 
close “questionable payments" 
amounting to around $9m. 

However, the Washington 
court did seal the complaint 
for a further 20 days to allow 
ITT to appeal Its ruling. The 
company has complained that 
details of the SEC charges 
would hurt certain subsidiaries 
which are linked with the 
accusal ion. 

Extra payment 
from Frascan 

TORONTO. May 30. 
BRASCAN the Canadian utili- 
ties and mining investments 
manager, will pay an additional 
dmdeiitr 'of"' 10 cents fU-S.l 
a share' with Us regular 
quarter! v of 25 cents payable 
July 31.* 

For the first quarter of this 
year. Bra scan reports earnings 
of U.S.SL48 a share against 
SI .24 previously. Total net of 
$3<L2m compared with $33 .2 m 
on tales of $£20.1m against ' 


IN LINE with predictions of 
bard times ahead for Massey- 
Ferguson when it reported a loss 
of some S38m for the first 
quarter, the company today 
announced a second quarter loss 
of $16.?m against the net profit 
for the same period last year of 
This was on sales ahead 
by 1? per cent at $777m. The 
company reports its figures in 
U.S. dollars. 

Looking ahead. Mr. Albert A. 
Thornbnrough. the company 
president says that profitable 
operations are not expected to 
resume “until sometime in the 
fourth quarter." However, while 
•the outlook for the remamder of 
1978 is tempered by indications 
of softening markets for farm 
machinery in many parts of the 
world, as the second half pro- 
gresses. programmes now under- 
taken “ will progressively 


TORONTO, May 30. 

improve operating costs and the 

For the first half as a whole, 
this brings the company's net 
loss to Sao-Sm against a net profit 
of S5.2m or 1 cent a share- for 
the same period of last year. 
Sales for the half are 14 per cent 
higher at SL31bn. 

While the outlook for farm 
prices' appears to “justify 
cautious optimism” for the rest 
of the year in North American 
farm machinery, industrial and 
construction machinery is ex- 
pected in show little improve- 
ment over 1977. 

Efforts to dispose of part or 
al] of the construction machinery 
business continue, and white at 
this stage no further information 
is available, “it must be assumed 
that a substantial writ "-down will 
be required." says Mr. Thorn- 
brnugh. Agencies 

Mexican issue postponed 

THE Eurobond market was again 
easier yesterday, including the 
floating rate note sector. This 
caused the S6Gm bond for the 
Mexican Commission Federal de 
Elertricidad to be put off for the 
time being-. In its first day of 
‘ trading. Dominion Bridge, which 
had been priced at 99, fell to 
96 Jl 97 J. The $G0ra private place- 
ment for EIB. has been priced 
at 99} with -terms .otherwise un- 
changed -by lead manager, - Isti- 
tuto Bancario San . Paulo di 

The fall in prices is affecting 
the longer as well as the shorter 
end of the market. In many 
cases the yields on the longer 
terms issues are above those tor 
equivalent Yankee bonds. 

In the Swiss Franc sector, the 
SwFr20m bond for Nokia will 
have a maturity of 12 years, and 
a coupon of 5 per cent. Lead 
manager is Banque Scandinavc 
en Suisse. 

While the Asian Development 
Bank signed an agreement to 
float a Yl5bn 15 year bond last 
Monday, no .agreement has yet 
been reached between Mexico 
‘and Nomura Securities on tbe 
terms for a Y12bn 12 year bond 
which were expected to be final- 
ised earlier this week. 

The Asian Development Rank 
bond, which carries a coupon of 
6.3 per cent, was priced at 99? 
to yield 6.33 per cent, the lowest 
yield so far boasted in this sec- 
tor of the market by a bond for 
a foreign agency or government. 

Mixed^year for Brazil-car makers 


Fieo» : :vi Rate London-Dollar Negotiable Certificates 


of Deposit, due May. 1 380. . .. . 



- aa-ro'.i •I'.V'fp'av. crr.o{:!-eCcr! : ficates. roiicc is hereby 
•vc- :*ts; *.-• ■’*' i'\ i , -.*t? , os! co-'od boni V«Ay olK. >9/3 

. V,\_ t j .\.M can*, >r. l.vereM Rate 

• re? .’••• ii-r 7*»o ie:e*.vu nto'c-i! pi. men: dale will bo 

Credit SuisseVVhiteWeld Limited 

Agent Bank 


Alrau AtwtraUn sine t«a 

OlIEV Spe 1*7 

Australia Hpc I9K 

Australian M * S. Sipr '92 
Pan-lays Bank R*Dc 1992 

Hniratcr 9|PC 1992 

Can N. Railway aipi- 1M6 
CcHtl Naunml 8*nr 19SS .. 

Denmark Mpc l** 

KIT fpt- 1893 

ECS kjpr 1997 - 

KJU v:uc 1992 

KM I 9!pr 19S9 

Frtiwnn S*P'- 1*»9 

F.%60 Sjv l** NoT - 
C.t. LakM Pap” *lo« 14S * 
Ham.Tslfv Srjpc 199: 

Hydro Ourlyc 9nc IP*2 ... 

i Cl k.iic 1*7 

ISE I'-mario **pe I** 
Marmillan ltlO>-dri 9pr 1W2 
Mas*-? K mm son in pc M 
■.iirhpim 9lav I*** 
i] Miami Jnt. Via. Bine W 
National Coal Rd Spe 1*7 
National Wsimnsir. 8pc 'S8 
Newfoundland 8po 1*9 
Nordic Ittv. Pk Mp* 1*W 
N Korn. Bk Mnc IW2 
iisnop" Mpc i*9 ... 

Nomk Hydro S4PC 1992 .. 

n*lo 9|H! 19KP 

Ports Antonom#* 8 pc 1991 
Prnv. Od-Nt *pc 1993 
Pro>-. Saskaich. Mac 19S8 
Rrcrt UiierMfMMl 9pc 1957 

RH.M fpc 1992 

(Mptiiab Trusi Ripe 1M9 .. 
Sk.vnV EnsVtWa 9pc 1991... 
SKF 'DC 19S7 

This announcement appears as a matter of record only 

(IFV Power Company) 


U.S. $35,000,000 

Medium Term Loan 
Managed by 

Privatbanken Aktieselskab 

Provided by 

Amsterdam -Rotterdam Bank N.V. Bank of Tokyo Ltd. 

Citibank NA Hambros Bank Lim.ted Hanse Bank SA. 
Kredietbank SA. Luxembourgeoise 
Privatbanken International (Denmark) S.A. 


p* PRlVATbanken 

LjA 1 Akticscisk^ 

May 1978 


Australia 7ipc 19M M' Wl 

Ball Canada 7|pc 3997 Mi 

Br Columbia Hyd “tac ‘85 921 BM 

Can. Pac. Sipc 19S4 97t * 

Dow Chemical Sue 19W .. 971 994 

ECS 74 pc J9K2 951 96 

ECS S|pc 19S9 ..L -. 94* 93 

EEC Tine 1*2 954 » 

EEC 7itw \9M . Mi 9* 

Ensn Gnrzpil 9|pc 1*4 . 9Q 97 

rjotaverken 7fpc 1952 96 9*J 

Kru-tnmv; 9pc 19W 97 97; 

Slichrlin s»or. IW ... 99 991 

Alcnrn'aJ Irtwtn 'ipc 1991 9* ion 

New Btuuswtrk Ape 3954 .. *4 874 

New Bruns. Pror. Pipe 'S3 994 106 

New Zealand Mac 3M8 964 S7J 

.Nordic Inv. Bk 7fpe 1984 9<4 95 

Norsk Uvilm 7»nc 19*2 96 967 

-Norway 7Jpc 1952 944 93 

Dntario Hvdm Soc 19S7 Ml 95 

Sftwer R.-pc 198? ... - M4 ino 

S. nf Sent Elec. R’pc 1*1 94 9« 

Sweden i F'dnm • T*c k 1?P2 9H 96 

Swedish Stite Co. 7loc ’S? M Ml 

Tehnex 8! pc 1954 984 9a 

Tcwic n "{pc 1987 May ... PJI 9.74 

Volkswaaon T!pc 1957 934 94 


Allied Brrwcnrs lDjpc "DO S74 884 

Cinrorp !Ppl- 19X3 RH 904 

Counanlds 97 bc t»9 67| RSI 

. ECS 9fpc 1959 93» Mi 

EfR Mpc 3*8 Mi 94* 

EIB 9}pr IKK 924 931 

Kmance for lod. 9lnc 3957 W 9W 

Finance for Ind. lOpc 19S9 **4 914 

F iso ns iDjpc 19*7 934 94* 

Cesteraer llpc 19S8 914 924 

JNA‘ ]«ipc I9SS - 89 90 

Rmrntrec tdipc 1088 871 «i 

Sears KHpc 195? 8S4 «51 

Total OU 9iPC 1984 91 92 


Aslan Der. Bank 54 pc 198$ 964 974 

BNDE- 6|pc 1996 964 97 

Canada 4ipc 1983 97| Mi 

Deo Norake KL Bk. 6pc - B0 * 9 M 

Deoucbe Bank 44 pc 195.1. _ 97» 95> 

ECS ilpc 1990 944 9-M 

EIB alpc ISM Mi 951 

Elf A Ctrl tame 34pe I9S8 944 95 

Euratom 5|pc 1987 97| Mi 

FinJand SIpc 19S6 97 971 

Forsruarks SJpc iwo «74 * 

Mexico 6t»c IMS M| 059 

Norrem alpc isss too jow 

Norway 4Jpc J5S3 984 994 

Norway 4Jpe 1W3 961 97* 

PR. Bankeo 57pc IBM 9S 9ii 

Prov. Quebec Spc LMO 95 9Sj 

Rautaruukki 52uc 1988 .. 95 »Si 

Spain Spe 1998 Mi 974 

Trontfbehn 5]pc 1998 964 97 

TVO Power Co. Spe 1988 ... 96| 974 

Venezuela 60c 1998 17 974 

World Bank 5lpc 1990 974 -98 


Bank of Tokyo 1984 84 pc... 994 mnj 

BFCE 19M Sipc 9» 1M1 

BNP 19*0 si K pc — ION lMi 

CCF 1993 Sipc 994 1M 

CGMF 1BS4 71 pc 994 ion 

'Tredliansralt 19*4 «pc ... 993 tom 

Crnlil I.'onnaLS 1982 Spe... >60 idol 

DC, Bank 1992 Tl.'wpc MOJ inrj 

CZR lMi ««pe ... ION mm 

ini. Westminster 1984 8pe Ws 1S9 

LJorda 1983 7Jpc loo* jnoj 

I.TCB 1W.1 99J 1604 

Midland 1992 fine 1661 inti 

Midland 19*7 89j6DC 9N 994 

OKB 1983 74PC 994 1MI 

RNCF 19S5 8tpc - 99i 99; 

Sid. aad Cbrrd. '*4 711 is pc 991 1M4 

Wmt. and Giro's *84 Slupr 991 1064 

Source: Wbfte Weld Securities. 

American Express 4isc 97 ft f*l 

Ashland 5pc t9ss ” Mi 

Babcock * Wilcox Mpc '97 1«4 1634 

Beatrice Foods «jpc 1992 .. >*4 99 

Beatrice Foods 4Jpc 1892... JB * 109 

Beechaoi 61pc 1092 .. . Ri 97j 

Borden Spe 1097 JDO JAli 

R roadway Hale Cpc 1987 .. ‘ • 78* 

Carnation 4pc 1987 « 7K* 

fbpvnwt Sp c 1988 ISO 1114 

nan 4! pc 19«7 m *1* 

Eastman Kodak 44 pc 19SS 934 83 

Economic Labs. 4ipc 1987 79i 

Fitestone inc !WS M* M 

Ford Spe 1!KS . .. *74 89 

n.-ntraj Electric 4ipc 1957' M *S| 

Ginette 41 pc 1987 5*4 7* 

Room 5 pc 1987 1J34 113 

Gulf and Western 5 pc 1958 6*4 98 

Harris 5pe 1992 172 174 

HMFTWCB 6 pc 1986 FT* . 89 

tCI SJvc 1992 Ml 91 i 

INA 6pc 1997 85* 07 

lnchcape 6!pc 1992 -113 114* 

ITT 41pc 19R7 *1 824 

Jusco 6pc 1992 1114 121 

Komatyu 74PC 1990 12*4 177J 

.1 Ray McDermott 4lDC ‘87 ’-77^ 172j 

Matsushita sipc 1996 1*H 1*3 

Mitsui 7*pc 199* 25* lit 

I. P Manta n 4 : oc 1987 l»r 161 

Vntnwo Sipc I9» ... 101 10Ji 

Ouni<; mmols -I* DC 19«7 .. 113 1141 

J. C. Fenner <4pn 1957 ... 774 79 

Revlon 4ipc I#i .._ ... !16 117» 

RrynoMs Metals Spe 198S 86 87j 

Sandnk Mpc 1B«S 1W IM 

S . W T TT Band true 1997 .. .. 92 91* 

Sttuibb 4tuc 1*7 S8 . SI. 

Tesani 44i*- 1*** M 51* 

Toshiba 6il*r 1992 . . 124 lit 

Ft Co. Bpc 1»4 _ <84 7« 

En'ei 4lsc IW . M 

— Sdurnt Kf&tT. PO&oily SocattOM. 


THE ANNUAL results of Ford >f 
Brazil and Volkswagen of Brazil 
are in striking contrast. While 
Volkswagen reports net profit of 
S15.42m. Ford suffered a loss of 

Last year was difficult for the 
Brazilian car industry, not only 
because of a Government fuel- 
saving campaign which cut into 
sales I but whose effects now 
seem to have worn off. making 
1978 car sales soar), but also 
because of higher raw material 
and component costs. which, in 

RIO DE JANEIRO. May 30. 1 

Ford's case could not he offset 
by higher selling prices. 

Ford has a share of some 15 1 
per cent in the Brazilian car I 
market and. as its annual report 
points out, the market is “ highly 

Although Volkswagen's output 
dropped by 50.000 vehicles in 
1977, the value of its sales rose 
hy 30.9 per cent because., or 
higher prices, showing it felt 
strong enough to brave the 

Socidtd Anonyms with a capital of Fr.Frs. 465. 001 ,200 
Registered Office : 28 rue £mile Mdnier. Paris 16 e 

Notice of Meeting 

Notice is hereby given thaT ihe Annual General Meeting of Lafarge 
will be held in Salle de Reunion at the Caisse d’Epargno, 42 Boulevard 
Eugfene- Danielle, Quanierdela Part-Dim Lyon (69432) ai3.00 p,cr>.on 
Wednesday, 21 si June 1978 for the purpose of iransaciing the 
following business: 

.1. To receivethe report of the Board of Directors on ihe operations of 
the Company for the financial year of 1977 and to approve the 
operations; the accounts and the balance sheet for the financial 
year of 1977: 10 approve the appropriation of the profits and io 
declare a dividend. 

2. To approve the agreements contemplated by Article 1 01 of Statute 
66-537 of 24th July 1 966. 

3. To authorise the Board of Directors to buy or sell shares in the 
Company on the stock exchange in accordance with Articles 21 7-2 
and 217-3 of Statute 66-534 of 24th July 1966. 

4. To authorise- the Board of Directors to grant employees the 
opportunity of acquiring shares in the Company on the stock 
exchange in accordance with Article 208-18 of Statute 66-537 of 
24th July 1966. 

5. To re-elect Mr. John G. Beevor and Mr. Peter McEntyre Directors of 
the Company. 

6. Other business^ 

Notice is hereby given that an Extraordinary General Meeting of the 
Company will be held at 4.30 p.m. on the same day lot the purpose of 
Transacting the following business : 

1. To authorise the merger of Socidt£ des Chaux el Ciments du Maroc 
with the Company, to increase the capital land effect a con- 
sequential alteration to Statute 6 of the Staiutps) of the Company 
from Fr.Frs. 465.001.200 to Fr.Frs. 474,864,300 which shall be 
issued es consideration therefor. 

2. To consider other matters arising in connection with the merger. 

3. To authorise the Board of Directors from time to time during the 
next five yearsto increase the authorised capital of the Company by 
Fr.Frs. 300.000,000. 

4. To reduce the retiring age of directors (Statuies 14. 15, 18 and 21 
(b)) ; to amend the objects of the Company (Statute 2) : to abolish 
Directors* fees (Statutes 19-1. 32-4 and 5. and 33): to alier the 
poweis of the .Company in General Meeting (Statute 25-11: to 

: modify the conditions governing the exercise of voting rights 
(Statute 28-1 ) ; and to regulate disputes (Statute 37). 

5. Other business regarding the implementation of the decisions of 
General Meei'iigs. 

. All Shareholders, irrespective of the number of shares field, are 
entitled to attend the Annual General Meeting or to be represented by a 
Joint holder or another shareholder provided that : 

1. In the case of holders of Registered Shares, they were entered on 

' the Register of Members at least five days before the date of the 


2. In the case of holders of Bearer Shares, at least five days before the 
date of the meeting they have either deposited their shares at the 
Registered Office of the Company, 28 rue Emile Metier. Paris 16'. 
or produced evidence that their shares have been deposited with 
certain banks or credit institutions. 

' Tliedocu merits to be produced to tK"e Annual General -Meeting -wiff 
be available for inspection by Shareholders during the period prescribed 
by French law atthe Registered Office of the Company. 

Shareholders wishing to attend the Annual General Meeting will 
receive upon request an Admission Form. Upon request Forms of 
Proxy are available to Shareholders who are unable to attend the 
Annual General Meeting in person. 

The Board of Directors. 

- The full text of the resolutions to be proposed at the Annual General Meeting 
is contained in the Annual Report of the Company, copies of which may be 
obtained from the offices of Kleinwort. Benson Limited. 20 Fenchutch Street 
London. EC3P 3DB. A list of the names and addresses of the banks and credit 
Institutions with which Bearer Shares may be deposited m France prior to the 
meeting. Admission Forms and Forms of Proxy may also be obtained in th& 
United' Kingdom atthe above offices of Kleinwort Benson Limited. 

mf x 

The Bank 
that puts 

Productivity is the motivating force 
of economic life in Baden-Wlirttem- 
berg. one of West Germany’s most 
dynamic and prosperous states and 
the headquarters of some- of the 
world's most prestigeous names in 
business and industry. . - 
Productivity is also the cornerstone 
of our banking philosophy at Landes- 
bank Stuttgart, one of southern Ger- 
many’s leading banks, with assets of 
'DM 18.7 bilTion and headquartered Tn 

StuttgaiVhub of Germany's industrial . 
Southwest- • • - 

Landesbank Stuttgart is a govern- 
ment-backed regional bank and 

part of the vast nationwide network 
of savings banks. We offer a compre- 
hensive range of commercial and 
investment services including foreign 
trade financing,, security dealing, un- 
derwriting operations and project fi- 
nancing. For refinancing purposes we 
are authorized to issue our own bonds. 

For a banking partner whose first 
priority is productivity, just contact us 

at Lautenschlagerstrasse 2, D-7000 
Stuttgart. Tel.: (0711) 2049-1. Telex:- 
7-22701. or our Representative Office 
in London at Portland House, 72-73 
Basinghall Street, Tel.: 01-6060052, 
Telex: 8814275 LBS LON. - .. - 



When&money isproductrve 




36 : 

Financial Times Wednesday May 3l Wf ~p 


Mannesmann looking for 
major investment in U.S. 


BONN'. Hay SO. 

Bic plans 
move into 
and boats 

MANXES MANX, the major Vest West Germany. Herr Overbeck by W per cent, there was a! By David White 
German steel pipe plant and attacked the limitations imposed shift in Mannesman n's export 

Spanish chemical groups 
criticise pricing policy 

MADRID. May 30. 
ERT. the result of a merger in ; 


Meeting ,i 
Kockums - 

By John Walker 


SaSmw srzms sfa? setts; £^ 7 ™ ** » -.ssr - sssrss^m »». e-n-wi . sr 5 ie d « 

opportunities for a major invest- was a reference to Manner- Community were down 10 per! BARON MARCEL BlCH, chair-' pricing policy leading to com- asphalt division caused b> un . enfnciemly diversified I .iy 

,M ent in the U.S. nutans own rh waited takeover cent and those to Comewo man and founder of Bic, the bined losses of around S29m. «•»***<• novernmenl pricing SUii nas a sum*. ».,has approved the 1977 accounts 

tl„ i,i,, K. — bid for Brueninshaus Hydraulik countries by 41 per cent, than! 

’■SSaJL'? SfiJ * Itawai » a» P»«f» »1. «wi«rt“ ! 

inent in the L'.S. mantis ova Thwarted takeover cent and those to Comecon ma n and founder of Bic, the! bined losses of arocmd S29m. realistic government pricing su^ ua heebie lu absorb such i ^fhont'^mimicnt This follows 

c7ok P °The complaint of both groups market distortions Cros, one!* 1 refusal by the company's 

tHrmiKh . n •inni«teirii-,n r-itVier ,1 * •** 1 a,caa " *w nckl’UUI i« imp paiwtn wi uwiiwivu >. u^lliciiFlinureiii, auu, UiUK »*■— 1 Miwuui wicu UlOB -ruuu. * “ c tuiuiiiaiii I »• ° - r -' •«- -- — ' - ■ 

r'l'in ‘n “SnhIL « subsidiary ijs already strong. Ions term contracts to the Soviet JeenUy. razore, plans to add to (Spain’s second largest l«- 

Vi-.r.noo«..n« n..rii,.iii.ii-u' L-Jon In an argument similar to that Union. ,the group's interests by incor-, concern, demanded that - . 

,unn banicuum Keen of Britain's GKMin its efforts Exports to non-EEC European ; poi-allng some of his private ! chairman raise the matter of ment to liberalise the mervaseu , . 

LA ' pla to acquire Sachs. Herr Overbeck coumnes. !c d by Turkey, rose, sbareholdi nss. i fertiliser prices with the and can no longer follow -.ruup profits .*** | 'he - * '■ 

. aW ,h. CrM Offic. « con- <8 ««, to. » KMi! The .i*— ^ of This SfWffSi 

1977 irmn.Mft Herrero Garralda ‘-0 per coni tn Pta lu - <l,n : t ion of the company’s assets and 

to be Lhat the 
their nient must carry out 

on Wreaking into the 
i-un-t ruction market. 

Although the uruup. currently sideline ibe vroac market bv America by 54 per cent, to Lj* 1 * 0 1 Diroco a holding company which! followed the announcement of a 
mule rowing |HHcli> earnings judging the effects of takeovers America by aO per cent and to brings logell)er Dim-Rosv and! Pta I.15bn fSMml loss in 1977 
recovery after lasl > slide, on the national ralher than Hie Afnea by 31 per cent. Sales to c , - France's two leading ; which the company ailributec 

ha-i nu firm candidates in mind, slrictlv more relevant inter, China remained stable. 
»•:. in n .in Iti-rr Ivjun I.ivvibeck national scale- those to the rest of Asia 

.%:i:il it wanted ti. retain the While experiencing improved. 54 per cent. 

<!«-.vib(lit> r<« act f i.-i a a famur- though stiff uneven earnings on Exports of all products 

••iciivhy. he luJd journalists in 

•nu ll-di a meter pipe. DM 2.Bba. Neither figure! The Baron warned shareholders 

La -t year, when average prices changed substantially from the ; at the Bic annual meeting that 

An for further «rnuth within for pipe of all sorts had fallen previous year's. 

sales growth 

D-Mark hits Boehringer 



By Jonathan Carr 

BuNX. May "ill. 

PHARMACEUTICAL GROUP fell from 70 per cent to 69 per 
i.! II. Buch ringer shared tin* fate cent, wr.h a drop from 72 per 
DEFENCE cnniiacl work -eeina of many olfaer West German cent to .71 per cent for pharma, 
certain fo assure anmher big in- companies Iasi year, seeing it* ceutlcals. 

they would have to “learn to 
take on financial risks-” He 
moved into the companies when 
they were in financial difficulties, 
but hoped they would be ou tbeir 
Ifeet before being transferred to 
itiie Bic group. He said he wa* 
looking for a way of transferring, INDUSTRIE 
his shareholdings “under equit- parent company 
able conditions.” The operation biggest manufacturer 
is expected to take place next ■ domestic appliances 
year. todav increased profits 

Increased profits from Zanussi 


ROME. May 30. 

vard's managing director Mr. 
'Nils-Huso Hallenborg now be- 
\ comes chairman of Kockums. 
■ Deputy managing director Mr. 
jOlafur Sirgudsson becomes 

'managing director. 

I Kockums has a number of 
j claims against shipowners and 

products sectors fell! in 1977 of FFr 133.3m (828.5ra>.| jw a *13 per cent, increase on minority 

compared with FFr 134An in 19,B - » . 0ack a per ceni - m!nor, »- v 

1976. Baron Bich said earnings > The Zanussi aroup s 

around DM 3.4b n iSl.6bn> of further slow growth. consumer 

which more than DMSbu in- Lagging well behind the back by 3 per cent, pbarnia- 
\uives defence wirk. notably ihc previous year's 9 per cent expan- ceutical sales rose by 6 per cent. 

"Leopard" tattle tank and the sion. sales of pharmaceuticals It remains to be seen if this, *>•> 

Gepard" anti-aircrafl tank. alone, accounting for over three- growth rate in the pharma - 1 launching disposable razors and I amounted or -- r per co j‘ f c J a r n ^., 

of the need to finance investments. L5.6bn deficit of the previous Kr :100m fS64m>. Commenting 

■ on this situation. Mr. Halienborg 

nmpanj is “a going 
Although Mr. Hatlcn- 
opttmistic about the 
concedes lhat 1978 is 
similar figures to 

« — — Lancia said it expected better | — The companv showed a pre- 

overall shareholding interest held by the results for 197S on the basis nf tax 0 f Hr 65ra for last year 

were SSd"? "ibe consolidated turnover Iasi year West GenxTan AEG-Telefuuken first quarter sales which showed 1 0 t «»lec virtually unchanged al 

a notable improvement from the ( Kr 2bn. 

La>i year the company von- ■ quarters of the total, crept up by ceutical sector can be maintained , strong Japanese pressure in the i cer “- t&an oeiore. 

• mued deliveries of the "Leopard 2 per cent to DM 1.74bn._ As a as it was spurred by a 12 per (lighter market. 

Meanwhile. AP-DJ reports that previous year. 

I" to Denmark and Australia. , further sign of Boehringer's cent increase in domestic sales 

Consolidated sales were 11 perj 
cent up . last year at FFr L95bn.i 
aad the 'same growth rate was I 
registered in the first quarter off 
this year, when sales totalled > 

and current order* will keep it , sluggish progress, the proportion prompted, the groups says, by a 
bu-\ on this model until mid- of "total sales achieved abroad hard winter. 


Deliveries nf Hie “Gena"!” 
hecan venr to the West Ger- 
man armed force*. Belpivni and 
VefhprJnn'K and will cun- 
rn ne at lea-i l»i rlie end nf IftSn. 

Oniract*- ?->r the highlv .-ui- 

\ .nc-’.-t *• L'->n- -d will -.i;n W EbT GERMAN engineering Lie setting up of new sales 

m*inv *or»- fi'.r Krau>s-Maffei concern Deutsche Babcock AG branches abroad, 

in*.* i he nrl-lPSfK. will cuntinue «o stress expun- For the curreni financial year. KORTHEcurremyearSchenn'*' 

■The strmi, emnh^-iN nn ai-ma- ,h,n on foreijn markets “in which ends un September 30. the : the West German 

i(ier?^lend< to distort the annual ort lcr lo attain saiisfaclory gr.iiip evnects rurnover of ceuticals and 

Tampella restores dividend with 5% 

New head for ANIC 

| FORMER senior executive of 
the Montedison chemical con- 
glomerate. Sig. Giuseppe Ratti, 
iwas appointed today chairman 
1 of the state-controlled ANIC 


Deutsche ORDCOCK overseas dims jtiiesainepen^od n ajear r ^o 7lDin SHARPLY increased sales have the company will continue to con- at around 80 per cent of capa- 1 chemical group, writes Paul 

returned Tampella to profits for cent rate on rationalisation, shed- city, thp sawmills somewhat less. Betts from Rome. Sis. Ratti 

1977. The dividend is also ding unprofitable products and Textiles suffered from slack con- -takes over from Sifl. Itnlo Ragiu 

restored with a payment of 5 per niakinc selected investments that sumer demand. ut a particularly difficult moment 

w „„,w ,«v (Cent will improve profitability- The Tammck tmek drilling ; for the stale concern and the 

Net sales in 1977 rose by 28 The turn-round last year was division, energy production and, entire chemical sector In Italy. 

ic largely to the engineering packaging divisions had a satis- 


ZURICH. May 30. 

Scberin® sales rise 

: Per ceni to Fmks 1.32bn. Con- due largeK to the engineeruu* , — - . 

nr _ni, qi u> onH „», a m:»„i^ P ^. nila "'5oIidaied invoicing was Fmks division which accounted for 38 factory year and improved their 

'**-^■*7 T5- ' ^ !S? SH'WUI iwinapv- S r S“ F 1$S»£ U «SS£Z amn - 

e -+ 0 ■** pei cent ana a per cent after i .u„ t ^ .u„ Mn , n i a i v i H,.rinn 

ANIC reported losses of lire 
189 7bn last year compared to 
losses nf lire 44.6bn in 1976. 1 

to deience cintracls in p.-rii- introduction of its shares lo the DM 3Jlbn in 19i6/77. Some 40! 4 per cent and 5 per cent after! r nmn ui«i n.irinn t ho v M r The 
•■ular. tnrnmer :ilm«**i doubled stuck exchanges of Zurich. Basie per cent of Deutsche Babcock's! a poor first quarter. The report ! !f-?, L fvorkerf 

to DM l bn from DM 50Sm in 1976 and Geneva, the company said DM 250in share capital is. in Tuesday’s editions that the I st1 U ooc sa0sfact0rj and tiiat paper and board di vis lorruorked 

A total nf 4« per cent went m : efforts in this direction will be currently held by foreign in- [company had lost money during! 1 — - 

pynort against 4S.5 per cent in concentrated on the creation of terests. Iran alone hold 23 per! the opening three months of 1 

1976. intnl rpnfiir** unilerliiL'IiiM ind i.#n I I iora <..c imM-mMi - ) 

joint venture undertakings and cent. 

1978 was incorrect. 

information on 

i demand. 

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Half-year decline at Danfoss 


FIRST HALF group sales for 
the Dan Foss electronics and 
hvdrsulics group were Krl.lbn 
(S192ml. which was unchange 
from last ..year, ..the company 
reported. It aided that earnings 
were tower than last year, but 
they **ere io line with a 
budgeted drop in earnings. 


Sales in the second half-year 
are expected to stay at an 
unchanged level, and as stocks 
are still large ar both Danish 
and overseas' sales companies, no 
improvement in group einploy- 
niem can be Foreseen, said the 

Schindling in Sw iss takeover 


THE UVC International Watch real-estate company. H. E. Horn- 
Company. of Scbaffhausen. has burger AG. will be set up to 
been taken over by VDO AdolF restructure the company. 
Schindling. oF Germany. The * * * 

German company has acted Natural g3S producer Nicor 
through its Sv.’iss subsidiary fnc. of the U.S. is reported to 
Instek AG. Zurich, which will be investigating the possibility 
hold a controlling stake in a of listing its shares on Swiss 
newly-formed bolding and oper- stock exchanges. Tbe company 
atiiig company working under is already listed in Amsterdam, 
the same name of IWC Inter- As the parent company of 
national Watch. A minority Northern Illinois Gas. Nicor is 
shareholding is fo remain with the fifth biggest natural gas trad- 
the Homberger family. A special ing group in the U5. 

Condotte d’Acqua plans issue 

ROME. May 30. 

issue next year, under which 
L 1.000 bonds would each be 
convertible into four L250 shares. 

The company said the increase 
in capital was made necessary by 
a sharp increase in its business 
since 1965. the date of its last 
capital Increase. Net 1977 turn- 
over was L442bn. 

Plans for the concern to return 
to the private sector, under 
consideration as part of a project 
for the financial salvage of 
Generate Immobiliare Spa. were 
abandoned last year in tbe face 
of union opposition. 


works company Condotte d’Acqua 
plans to raise capital to L24.5bn 
(S2Sm > From L7bn through the 
issue of new shares ranking for 
dividend from January 1. 1978. 

The company said it "will make 
oce-Fur-two free share issue 
and a Kvo-for-one rights issue at 
par value or L250 plus L25 for 

Coudoile d'Auqua is 52 per 
cent owned by slate holding 
company LRI and its shares arc 
quoted on the Milan bourse. 

Condotte (TAcqua plans to 
launch a L14bn convertible bond 

Standard Chartered Bank Limited 

{Incorporated with limited liability in England ) 

• U.S. $50,000,000 
. .Floating Rate Capital Notes 1984 

For the six months from 
31st May. 1978 to 30th November. 1978 
the notes will carry an interesr rate of 82 % per annum. TM 
On 30ih November. 1978 interest of U.S. 544-48 will be 
due per U.S. si .000 Note for coupon No. 3. 

Principal Paying Agent 
European -American Bank & Trust Company 
1 0 Hanover Square 
New York. N.Yl 10005 

Agent Bank: Morgan Guaranty Trust Company of Kaw York, London 


for industry and commerce 

Whether you’re seeking finance for expansion, 
for plant, equipment, property or a private mortgage, the 
directors of Garfield Marw/n personally investigate 
rT- ~T t? — your proposal. 

A letter or phone call will 
receive immediate attention. 

Garfield^ '* V; 
Marwin Led 

For enquiries please ring 
Worthing (0903) 814008. 

. Specialist brokers in corporate finance 

Cliftonville Hall. Hove. East Sussex, BN 3 3RZ 

Tins dCverbscmeni azpeaz ns, a mailer u> record only 



Guaranteed by 



Medhim-l&m Loan i 

Managed by 


. Provided by 







1' ' 

Iv - 

\IRI ! w 

; • \ •. 

f h fi 
- *4“C 


\ v 


Ffaandal Times Wednesday May 31 1978 "" 

financial and company news 

Downturn at Nissan Motor 
following rise in yen value 


NISSAN MOTOR, manufacturers 
of Datsun cars, suffered a sub- 
stantial reverse in profits fur l he 
year ended March MO last despite 
an Incre-isr uf II per «-ent in 
sales to Y2.iMfihn tSw.yUnt. 

Nissan V recurring profits fell 
hy fl.S per cent to Yl.1S.45hn pnd 
net profit hv 5.1 p L «r cent to 
YSO.fiShn iST55.4m». the fall 
primarily c:m«ed hy the nppre- 
rcitien of the yen.* Both recur- 
ring and net profits fell shnrl r.r 
the estimates made In Seotemhcr 
IB77. hv Y4 .5hn and Y4‘J0m 

Supported by brisk exports, up 
]fi per cent m 1 .108.415 vehicle*, 
total car sales incre-ised bv 10 
per cent to 2..1R.1.R*_*^ vehicles. 
However. despite the company’s 
efforts of marketing new model* 
of Sunny or Skylines in the 
domestic market, domestic sales 

b l ?* P* r “a* to 
1.O1 . vehicles. 

The com puny raised fuh prices 
nv».» times (hum 2 the year in 
order to cover csrhaneu losses 
enticed by the sharp rise in the 
yen— and the mark-ups nf Da'r.un 
l.ars were $4 lo $5 higher than 
that or U S. equivalent, hut car 
exports to the US. still increased 
by 24 per cent to 530.000 
vehicles. Exports to the UK 
totalled 110.000 vehicles, a gam 
of 3.1 per cent, while ilm-e to 
Saudi Arabia totalled 74.800. As 
a result, exports accounted for 
54 per cent nr total sales, eom- 
Dtired with 49 per cent in the 
previous year. 

In profit performance. Nissan 
failed to adjust its exchange rate 
swiftly tn the sharp rising yen 
value, which generated an 

TOKYO. May 30. 

accounting loss of . Y93bn on 
foreign exchange fluctuations. 

For the current fiscal year, the 
company esti mules production at 
2.40m v etudes against 2.35m last 
year. Sales are expected lo rise 
from 2.38m vehicles lo 2.45m, 
with domestic sales improving 
from 1.07m to 1.20m vehicles, but 
exports declining from 1.31m to 
1.12m vehicles. ~ 

Sales are estimated to reach 
Y2.350bo. a gain of 5 per cent, 
but recurring profits are likely 
to fall 2.2 per cent to Y!35bn 
and net profits by 7 per cent to 
Y r5bn. 

The company plans to pay a 
special dividend of'Y2 per share 
for the year, in addition to the 
ordinary Y10 dividend to cele- 
brate its- 45th an adversary. 

Sasebo to get emergency loan 

A JAPANESE hanking enn- 
jortium has agreed to supply an 
rmersency loan of about Y500m 
in Sasebo Heavy Industries for 
its cnd-ntnnlh settlements, 
according to the company. Reuter 
reports from Tokyo. 

The loan follows an emergency 

request made by the Finance 
Ministry to help the company 
over its end-month difficulties in 
paying short-term debts to banks 
out oF total debts of about 
Y12i)hn. Earlier -today. th e 
Prime Minister, Mr. Takeo 
Fukucla asked the Transport and 

Finance minister to expedite - 
efforts to save Sasebo. 

The company will face another 
crisis next Monday when debts 
totalling Y2hn fall due. although 
the Government, the company's 
management, shareholders and 
creditors arc continuing efforts 
to salvage the shipyard, he said. 

















Heavy industry, 





Hitachi Shipbuilding 

Heavy industry, 





Mitsui Engineering 

Heavy industry, 





K aw Juki Risen 






Mitsui 05. K. 






Nippon Yujen 






ShmnShon SS 





180J6 ‘ 

Nippon Srcel 






Nissan Motor 






Daiwa House Ind. 





• 196.11 







Sharp Corp. 












- Fujisash Ind. 

Metal products 





Fujisash Sales 



- 0.24 



Minolta Camera 







Tokyo Gas 

power & gas 



420.0 T 






2.160 . 


Sumitomo Shoji 







Mitsui Real Estate 






Bank of Tokyo 





— - 

Tokyo Broadcasting 






Sharp fall 
in profits 
at Nippon 

TOKYO. May 30. 
NIPPON STEEL Corporation, 
the world’s largest steel pro- 
ducer. has announced a fall 
of 44.9 per cent In its net 
profit In the year to March 31. 
to Y15.8Sbn (S70m) from 
Y2S.77bn in the previous year. 
It said that the performance 
resulted from a decline in 
crude steel production and a 
fall in the domestic steel price 
associated with low economic 

The dividend for the year 
totalled Y3, after the elimina- 
tion of the mid-year payment, 
compared with Y5 in the prior 
year. Net profit per share fell 
to Y2.46, from Y4.46. Sales 
decreased 7.2 per cent to 
Y2JS3 trillion (million million) 
from Y2.506 trillion. 

“ We expect that - the worst 
is over;" the company said, 
bnt declined to give a forecast 
for the current year or for the 
first half. However, the domes- 
■ tic market and the export mar- 
ket. it was said, remained 
tight. Plant utilisation had 
taJIen below’ 70 per ceDL 

Crude steel production last 
year fell 2.7th ions to 31.65m 
tons, and the value of exports 
to Y135.3hn. or by 18 per cent, 
to Y7332599bn. 

The company's profit before 
tax and* special Items was re- 
duced to Y7.23bn from 

After special- account profit 
of Y17.3Sbn, against Yl5.1Sbn. 
the year before, it paid 
Y4.86bn into reserve amounts, 
compared pith Y25.46bn. Tax 
amounted to ' Y4bn. against 
Y2flhn. • 

Three . medium sized 
Japanese steelmakers. all 
affiliated . with Nippon Steel, 
have signed a merger agree- 
ment. under which Osaka Steel 
Company will absorb Daitetsn 
Steel Industrial Company and 
Yamato Steel Works on Octo- 
ber 1, Osaka Steel announced. 

The new company win he 
capitalised at Y910m. with 
annual steel goods production 
rapacity of 435.000 tonne* and 
sales estimated at Y28bn a 

The merger is aimed at 
easing losses registered- by 
Daitelsu and Yamato' as a re- 
sult of (he protracted business 
slump. Daitelsu has accumu- 
lated losses of Y9fan and 
Yamato of Y25bn. 


Chloride Oldham dividend 
raised by 3 cents a share 


RESULTS FROM Chloride Old- 
ham. controlled by Chloride UK, 
show a modest rise in turnover 
which clothes useful gains in 
volume and market penetration, 
and have apparently encouraged 
the Board to declare a higher 
dividend on reduced profits. The 
turnover improvement over the 
year to March 31 was from 
R2S.3m to R30.3m <S34.9m), an 
8 per cent gain against the back- 
ground of an average 7 per cent 
increase in selling prices. But 
with the battery market shrink- 
ing. Chloride Oldham has gained 
in market share. 

Pre-tax profits fell from 

R3.7m to R3.6m ($4.1m) with 
margins contracting from 13.1 to 
11.8 per cent, but earnings per 
share were shielded b.v lower 
tax. reflecting export allowances 
and capital expenditure, aod 
rose from 53 cents to 62 cents. 

The dividend was raised from 
20 cents to 23 cents aod the 
shares, a strong market recently, 
now stand at 310 cents 10 yield 
7.4 per cent. 

The dividend has -been paid 
out of tbe previous year's 
retained earnings, in a move tn 
minimize tax paid by the UK 
parent which is liable for the 


difference between the local rate 
and that in the UK. This is a 
one-off benefit, as the current 
year dividend wil be paid out of 
current earnings in the normal 
way. The South African group’s 
dividend contribute* about 7 per 
cent to the parent's total profits. 

Tbe clue to the bigh-than- 
expected dividend increase seems 
to be recent trading, which has 
been strong in the past two 
months on higher car sales. In 
addition, early reactions to the 
new maintenance-free battery- 
have been encouraging. On the 
rating, improved results are 
expected in the current year. 

Encouraging half-year for KLK 


KUALA Lumpur Kepong. tbe 
giant Malaysian plantation 
group, says there is now “an 
even chance" that it might be 
able to repeat last year’s record 
pre-tax profits of 45.4m ringgits 
i U.S-SIRBm ) for the current year 
despite some earlier conservative 

Tbe renewed confidence that 
the group will now do much 
better than had earlier been 
anticipated is reinforced by the 
currently . rising prices Tor oil 
palm and the encouraging set of 
results for its half year ending 
in March. 

. It was only in April that KLK, 
in its prospectus accomoanyinc 
the issue of 15m shares to 
Malays, had projected that profits 
for tbe current financial year 
would he around 30m ringgits. 
As it turned out. pre-tax profits 

for tbe first half of the year were 
already 17.67m ringgits. 

Although this was only mar- 
ginally- better than the compar- 
able period' the previous year, 
the results are encouraging 
when viewed in the context of 
declining prices of oil palm 
during the period and lower pro- 
duction owing to the drought. 

The directors have described 
the results as “ better than 
anticipated.” Three reasons were 
given: significantly higher oil 
palm prices during the later 
months; a substantial increase in 
investment Income from l.H5m 
to 3.S5m ringgits; and lower 
interest charges 

. Despite a 12 per cent increase 
in' matured oil palm acreage, 
output .fell by 6 per cent in 
101.800 tonnes because ' of sub- 
stantially lower yields. 


The decline in rubber yields 
was less sharp, but because of a 
slower expansion in She acreage, 
output of riibber' Cell by 11 per 
cent to S.53m kilos. 

The group managed to receive 
an average of 1.024 ringgits per 
tonne for its palm oil. which was 
39 ringgits lower than prices 
obtained during the comparable 
period Iasi year, but was higher 
than the group's earlier forecast 
of 1-000 ringgits. 

The same applied to price*, for 
rubber, which fetched 213 .cents 
per kilo, while the group, had 
earlier expecled prices to fall 
belnw the 200-cent mark. 

KLK says its total planted 'area 
as at March stood :it 35.320 hec- 
tares. comprising 14.637 hectares 
uf matured oil palm and 10.456 
hectares of mature rubber, with 
the remaining area immature. 

Wardley resigns on new takeover code 


IN STRICT adherence to the new 
code on takeovers and mergers 
published here last week. Ward- 
ley, the merchant banking arm 
of the .Hongkong and Shanghai 
Banking Corporation, ' has 
resigned as adviser to share- 
holders tn a deal with which the 
Hong Kong bank is indirectly 

The deal involves Jardine 
Matbeson and Company's offer to 
buy out the minority share- 
holders of its subsidiary'- Jardine 
Industries. Wardley. which was 
to advise the minority share- 

holders, has resigned after dis- 
cussion with the Securities Com- 
missioner here “because of the 
investment of the Hongkong and 
Shanghai ’ Bank in Jardine 
Matbeson." Schraders and Char- 
tered, tbe merchant bank, has 
agreed to act tn place of Wardley. 

One section of the new take- 
over and merger code says: “ The 
committee (on -takeovers and 
mergers) would not normally 
regard' a's an appropriate person 
to give competent, independent 
advice a person who has a sub- 
stantial connection, financial or 
otherwise, with the offeror or 

HONG KONG, May 30.. 

offeree company of a .kind likely 
to create a conflict of interest.” 


CONSOLIDATED net profit for 
the City Hotels Group for 1978 
are expected to rise to about 
HKS22.22m iU.S.S4.76m), Reuter 
reports from Hong- Kong. This 
compares with HKSl8.B4m in 
1977, City Hotels forecasts in a 
statement. Hong Kong Land 
announced on April 29 it was 
offering HKS40 a share cash for 
1 he 47.4 per cent of City Hotel's 
66in HKS5 nominal shares it did 
not already own. 

Shareholders will also receive 
a KKS2 197S interim dividend. 


" , . SALES OFFICE OR PLA'iT?; ’ - 


Write today 




The Stale of Maryland. •■Home’* 
of the world-seaport of Baltimore^ 
and Baliimore-Washington 
International Airport. Located 
wilhin one day's rail delivery 
from Baltimore are 37*a of all 
U.S. manufacturers, and'35 e i of 
(he nation's consumer market. 

Three major railroad lines, 

350 highway common carriers, 
and Maryland's excellent highway 
network provide quick access 
to markets. 

Maryland has overnight truck 
access 10 31 c i> of the U.S. 
population, and 3 a? u cf tne 
nation's manufacturers. 

Maryland can 'arrange up to 
100°., financing of land, buildings! 
machinery and equipment at 
low interest rates tor long terms. 

Write or phone today tor our 
brochuic and tor our assistance^ 

George Van Buskirfc 
European Director 
Maryland Department of Economlo 
and Community Development 
Snell Building 

60 Rue Ravenstein. Boite 10 
1000 Brussels. Belgium 

Phone: (02) 512.73.47 


•7 USA 


Clip*#* of fhr nnuMul iiudifed Financial Statement* of 
t ;ih*usc hirer national Finance Limited for the near ended 
Di.n.TwbiT. 1.477, «ro 111 atlahle fn»m the Ci'nipanii at 
I'D. ftxr fJ7.v F<‘id Ihvisc. CJiurch Street. Hum if ton, 
fii'rtiiriiiii. cm! from flu* I'fJiiVx of; 


'.'ll Fcnrhurch Street. 

London EC-JP 3 DB. 

Israeli bank going public 


THE Israel General Bank — 
acquired in 1965 by a group 
headed and controlled by Baron 
Edmond de Rothschild — is now 
going puhHc for the first time. 
It intends to raise If 50 m 
c$2.89in) on the Tel Aviv Stock 
Exchange by the issue of shares 
to a nominal value of Ifllm and 
capital notes to a nominal value 

TEL AVIV, May 30. 

of I£26ra. with each, unit to con- 
sist of two shares and .three 
capital notes. 

Employees of the hank can 
acquire a fixed amount in units 
consisting of one share and one 
capital note. The prospectus for 
the proposed Issue has been sub- 
mitted to the Securities 
Authority, the Finance Ministry 
and the Tel Aviv Stock Exchange 
for their approval. 

jii; ai these securities hmrinC been sold, this advertise.nent appears as a matter ol record only. 


The Continental Group, Inc. 

8.85 ■% Sinking Fund Debentures due May 1, 2008 

Lehman Brothers Kuhn Loeb Lazard Freres & Co. 


Goldman, Sachs & Co- 

Tbe First Boston Corporation Salomon Brothers 

Dillon, Read & Co. Inc. 

E. F. Hatton & Company Inc. 

1 lnterporated 

Blyth Eastman Dillon & Co. 


Bache Halsey Stuart Shields 

Donaldson" lirikin & Jenrette Drexel Burnham Lambert 

Kidder, P;Xd 7 & Co. Loeb Rhoades, Homblower & Co. Paine, Webber^ckson & Curtis 


Smith Barney, Harris Upham & Co. 



Warburg Paribas Becker 


Bear, Stearns & Co. 

Atlantic Capital 


Robert Fleming 

Shearson Hayden Stone Inc. 
Basle Securities Corporation 

Wertbeim & Co., Inc. D^n Witter Reynolds Inc. 

L F. Rothschild, Unterherg, Towbin 
ABD Securities Corporation 
EuroPartners Securities Corporation 

New Court Securities Corporation 
SoGen-Swiss International Corporation Daiwa Securities America Inc. Tbe Securities Co. 

Yamaichi International (America), Inc. 

Ultrahn International Corporation 

Kleinwurt, Benson 

Iscor porat e d Incorporated 

Scandinavian Securities Corporation 

Nomura Securities International, Inc. 
Suez American Corporation 

May. 1*7$ 




U.S. $90,000,000 


















B2nd MAY. 1S78 





: >X 


:JZ3Si ESit: 

financial Times Wednesday May. 31 -1878 : 
«* ~-*‘ ,aWI " : ' "”'’ 

Copies of this athwasaaiMt here been daSrered » a* Jtapbsar of Companies tee resbaatoiv Mcb-eow Savins smehsd » it ■ eonsr rf the consent* wooned bdw. a « P¥ w 
■ wy ol cacti oMtw materiel oMSMtelima Wow and a copy of «t puong taw. 

Aaokerian haa b«M itttA » *• Couaca of n» Slock Bccteage tor the wtofe of the teued onfinoty ahere cepftil of the Company lo be idAM » d» OBttial U*t 

Ford Main Dealers 

Share Capital 


£1,750,000 in ordinary shares of 25peach 

issued and 
fully paid 

a “ . % 


At the close of business on 1 2th May. 1 978. the Company and its subsidiaries had a secured mortgage of £1 8300 and other secured loans W £907.482. Save as disclosed herein and apart from inter-company indebtedness, neither the Company nor •nV’tfte liSte?* *** 
any loan capital, mortgages or other borrowings or indebtedness in the nature of borrowing, including bank overdrafts and liabilities under acceptances (other than normal trade Wlsj or acceptance credits, hire purchase commitments, or guarantees or other material conungent liabilities. 

Placing by 

Barclays Merchant Bank Limited 

of 1,333,000 ordinary shares of 25p each at 75p per share 

The ordinary shares now being placed rank in full for all dividends hereafterdeclared or paid on the issued ordinary share capital of the Company. 


Douglas Charles Antony Bra mall, F.C.A., 


Norwood House, Norwood, Otley, North Yorkshire LS21 2QU 
Trevor Allison, 

6 Oak Place, Tong Park, Baitdon, West Yorkshire BD17 7GJ 
Keith Feamley Siddall, F.C-A., 

23 Scotland Way, Horsforth, Leeds LSI 8 5SQ 
Robert Michael Picking, 

Radleigh. Welt Lane, Rawdon, Leeds LSI 9 6DU 


Barclays Bank Limited. 

2 Mtddlewood Road, Hillsborough, Sheffield S6 4GY 


Hedderwick Stirling Grumhar & Co« 
No. 1 Mporgate, London EC2R BAA 
and The Stock Exchange 

Solicitors to the Company 
Ralph C. Yablon, Temple- M lines & Carr, 
Bridge House, 24 Sunbridge Road, Bradford BD1 2AD 

Solicitors to the Placing 
Nabanro Nathan son, 

211 Piccadilly, London W1A4SA 

Auditors and Joint Reporting Accountants 
Touche Ross & Co., Chartered accountants. 

3 London Wall Buildings, London EC2M 5PH 

Joint Reporting Accountants 
Firth Parish & Co., Chartered accountants, 

5 Eldon Place, Bradford BD1 3AU 

Secretary and Registered Office 
Keith Fearnley Siddall, F.CJV-, 

146/143 Tong Street, Bradford BD4 9PR 

Registrars and Transfer Office 
Barclays Bank (London and International) Limited, 
Radbroke Hall, Knurs ford, Cheshire WA1 fi 9EU 


The following is a copy of a letter to Barclays Merchant Bank Limited from Mr. D. C. A. 
Bra mall. Chairman of the Company : — 

The Oireciore, 146/148 Tong Street, 

Barclays Merchant Bank Limited, Bradford B D4 9 PR 

Dash wood House. 

69 Old Broad Street, 

London EC2P2EE ■ 30th May, 1978 


In connection with the placing of 1,333.0 00 ordinary shares of 25p each in C. D. Bramall 
Limited ("the Company"), l am writing to provide you with information regarding the Company 
and its subsidiaries ("the Group"). 


My father. Charles Douglas Bramall. started in business in the motor trade in 1926 in 
Sheffield. Initially his business was the repair of vehicles but soon included the sale of cars and 
commercial vehicles and he acquired his first Ford retail dealership in 1 934. 

The present business was established by my father in 1957 with the incorporation of 
Hamilton and Bramall Motors Limited which was granted a Ford Main Dealership for the 
southern half of Bradford. The name ol this company was changed to C. D. Bramall (Bradford) 
Limited ("Bradford") in 19 67. My father continued as an active chairman of Bradford until his 
retirement in 1963. 

Bradford's original premises consisted of a showroom and offices at Craft Street, Bradford 
and a workshop and service department at Parkside Road. Bradford. In 1968 the main activities 
were transferred to new premises on the freehold site at Tong Sueet which remain the head 
office of the Gicup, The expansion of the business necessitated the transfer of the truck 
activities in 1 974 to purpose-built freehold premises at Cutler Heights Lane. Bradford. 

In 1969 Hobsons of Shipley Limited ("Hobsons") was acquired and a further acquisition 
was made in 1 $74 with the purchase of The Warrington Motor Company Limited ("Warring- 
ton"). Both Hobsons and Warrington are Ford Main Dealers. 

The contract hire activities were started by Bradford in 1961 and are now carried on from 
the Tong Street premises by subsidiaries. In 1973 the Group entered the field of hire purchase 
through Progress Finance Company Limited which also operates from Tong Sueet. 

The Company was incorporated as a private company on 9th January, 1978 to act as a 
holding company for the Group. On 30th May, 1978 the Company acquired the whole of the 
issued share capital of Bradford by an exchange of shares. 


Th’3 Group trades as Ford Main Dealers in cars, vans, trucks and tractors. Each of its four 
principal sites is equipped with comprehensive sales, service and parts facilities and each pro- 
vides self-drive hire vehicles. The Group also operates contract hire companies and a hire 
puichaso finance company. 

The turnover and profit before taxation of these activities for the year ended 31 st December, 
1977 were as follows : — 


Profit before 




Ford Main Dealerships 



Contract hire 



Hire purchase 





Bradford is the Ford Main Dealer for cars and vans for the southern half of Bradford and for 
trucks for the whole of Bradford and the surrounding area. These operations accounted for 41 
per cent, of the turnover of the Group for the year ended 31 st December, 1977. 

The car and van dealership is operated from the principal Bradford premises on a 2.7 acre 
main road siie-atTong Sireer. Bradford. These premises also house the head office of the Group, 
new car showrooms, service workshops, a parts department and a petrol forecourt The body 
repair shop and pre-delivery inspection premises are located nearby at Parkside Road. 

Bradford's truck activities are located on a 3.6 acre site at Cutler Heights Lana where 
modem purpose-built premises provide a truck showroom, an extensive repair workshop, a 
parts department, vehicle storage area and offices. Negotiations are in progress for the purchase 
o' an adjoining 2.1 acre site to be used for further vehicle storage. 

Hobsons Is the Ford Main Dealer for cars and vans for Shipley and Bingley. Its premises in 
Shipley include car showrooms, service and repair workshops, a parts department, offices and 
two petrol forecourts. Hobsons accounted for 12 per cent of the turnover of the Group for the 
year ended 31 st December. 1 977. 

Warrington is the Ford Main Dealer for cars and vans and for trucks for the Warrington area 
and for tractors for the south of Lancashire and the north of Cheshire. It also holds agencies lor 
other agricultural equipment. On the 5.5 acre site at Warrington. there are separate facilities 
which include showrooms, service and repair, workshops and parts departments for cats and 
vans, for trucks and for tractors. Warrington accounted for 40 per cent, of the turnover of the 
Group for the year ended 31 st December. 1 977. 

Bradford. Hobsons and Warrington each have separate agreements with Ford Motor 
Company Limited ("Ford") for their main dealerships. These agreements, each for a term of five 
years, expired on 31st December, 1977 and, in view of discussions between Ford and the 
European Economic Commission concerning Ford’s dealer franchises generally, were extended 
for one year until 31st December, 1978 in common with the agreements of other Ford main 
dealers. Ford have informed the Company that the agreements, subject to the usual conditions, 
will be renewed as from 1st January, 1 979 lor a period and on terms similar to those granted to 
Ford’s dealer network as a whole. . 

C. D. Bramall (Contract Hire) Limited and C. D. Bramall (Leasing) Limited provide a rental 
service enabling customers, including several large fleet users, to lease cars and commercial 
vehicles on a with or without maintenance basis for periods up to three years. A major part of 
the finance for these companies is provided by the block discounting of rental agreements with 
leading finance houses. 

Progress Finance Company Limited is principally engaged in the business of vehicle hire 
purchase for Group customers. 

Management and staff 

1 am aged 42 and hsve been a director of Bradford since 1957. Having qualified as a 
Chartered accountant, I became a full-time executive of the Group in 1963. On the retirement of 
my father in 1968, I became chairman and managing director of Bradford. I have since re- 
linquished the managing directorship of Bradford but remain chairman. I am also chairman of 
each of the other subsidiaries in the Group and in particular retain direct responsibility for 

Mr. Trevor Allison is aged 48 and joined the Group in f 965 as sales director of Bradford. 
He has had over 20 years experience in the motor trade and has been Group sales director 
since 1969. 

Mr. Keith Siddall is aged 46 and is a chartered accountant He joined the Group in 1 969 
and became deputy managing director of Bradford in 1 975. He is now joint managing director of 
Bradford with responsibility for its car and van division. He is also secretary of the Company. 

Mr. Robert Picking is aged 35 and joined the Group in 1 972 having already spent 9 years 
in the commercial vehicle trade. He was appointed a director of Bradford in 1977 and is now 
joint managing director of Bradford with responsibility for its truck division. 

Senior Management 

The directors are supported by an experienced and we)] -motivated team of executives 
including the following : — 

Mr. Graham Simpson is aged 33 and joined the Group in 1 972 after 7 years with another 
Ford dealer. He is now managing director of Hobsons. 

Mr. Donald Banks is aged 51 and had been employed In the agricultural equipment trade 
in die south of England before joining Warrington in 1 968. He is the director of Warrington 
responsible for its tractorand agricultural equipment division. 

Mr. Brian Leahy, A.C.MJV, is aged 38 and is the director of Warrington responsible for 
finance and administration. He joined the Group in 1 974 from Ford. 

Mr. Henry Dean. B.Sc„ is aged 42 and is managing director of Progress Finance Company 
Limited. He has been in the hire purchase industry for 1 9 years and joined the Group in 1975 
from Mercantile Credit Company Limited. 

Mr. Stuart Pitching is aged 27. He has been with the Group since 1 974 and is the general 
manager of the contract hire com parties. 

Mr. Anthony Murphy is aged 39 and is the general manager of Warrington. He has been 
with Warrington since 1 975 and had previously spent 1 6 years in the motor uade. 


The Group has approximately 430 employees and labour relations are excellent In 
addition to the basic wage or salary structure the Group operates a number of bonus and 
commission arrangements. The Group also offers to selected employees the opportunity to 
participate in a staff car leasing scheme. 

, The Group operates contributory pension schemes for full time employees which are 
funded through the Royal insurance Company Limited and are contracted out schemes under 
the Social Security Pensions Act 1 975. 


The Group's properties were valued as at 31st March, 1973 by Eddisons, chartered 
surveyors. Details ol the properties and the valuation are set out in Appendix II. 

Working capital 

The directorsare of the opinion that, taking into account available bank facilities, the Group 
has adequate working capital for its present requirements. 

Profits and prospects 

As shown in the joint accountants' report in Appendix I, the turnover of the Group has 
risen during the five years to 31st December. 1977 from £4,935,000 to £17,653,000 and the 
Group profit before taxation has increased from £279.000 to Cl .1 24,000. . 

The growth in turnover and profit stems from the introduction of new and improved 
facilities, in particular the truck facilities at Bradford opened in 1974. and increased utilisation of 
existing facilities The Group’s expansion in the field of contract hire and the acquisition of 
Warrington in 1974 and its subsequent revitalisation have, also contributed significantly to 
this growth. 

Unaudited management accounts for the three months ended 31 si March, 1978 show 
Group profit before taxation of £366.000 compared with £287,000 in the comparable period 
of 1977. / 

The directors consider that it is too ear|y to forecast the results for the full year to 31st 
December. 1 978 bul they are confident of the Group's ability, with the excellent range of Ford 
products available, to take full advantage of the current favourable conditions in the United 
Kingdom motorvehicle market. 

In the light of their success with Hobsons and Warrington the directors intend to continue 
their policy of acquisition of suitable businesses as and when opportunities arise. 

The directors view the long term future of the Group with confidence based on the proven 
management ability within the Group and the Group's excellent relationship with Ford. 


(n the absence of unforeseen circumstances, it is the intention of the directors to declare 
an interim dividend of 1.75p per share (payable in or about November 1 978) and to recommend a 
final dividend of 2.75p per share (payable in or about May 1 979) in respect ol the year ending 31st 
December, 1978. The total dividends will, together with the associated tax credits assuming a 
basic rate of income tax of 34 per cent., provide a gross equivalent of 6.82p per share. II the rata 
of associated tax credit is altered before these dividends are declared,. it is the intention of tha 
directors roadjustthedividendssoasto maintain the gross equivalent of 6.82p per share. 

If the proposed dividends had been paid in respect of the year ended 31 st December, 1 977 
then, on the basis of the rate of associated tax credit assumed above, the allocation of profit 
before taxation would have been as follows : — 

Group profit before taxation 

Less: corporation tax (See note) 

Earnings attributable to shareholders (Equivalent to 1 9.1 8p per share) 

Cost of dividends 

Retained earnings 







Note: Corporal ion tax charged takas 
the above dividends. 

account of available allowances 

and also of advance corporation tax rctjted to 

„ . , w v.ticv nines uy earnii. 

noiders shown above and 2.35 times by earnings on a fully taxed basis. 

, _ At Placing price of 75p per share the gross dividend yield on the basis of dividends of 
e.sp per share is 3.09 per cent, and the price earnings ratio on the basis of the earnings shown 
aoove is d.9i . on a fully taxed basis, earnings per share would be 1 0.58p and the price earnings 
ratio would be 7.09. 

Yours faithfully. 

D. C. A. Bramall 

( Chairman ) 


Accountants' report . _ 

The fed lowing is a copy of a joint report by Totrchd Boss & Co, chartered accountants, tha auditors to tha 
Company and Flnh Parish & Ox, chartered accountants 

The DbacJOnv 3 Lor -‘ Jtm WjB Building* 5 Bdon Waco, 

C.D. Bramall Limited London EC2M6PH Bradlord BD1 3AU 


Barclays Merchant Bank Limited 



1 Wa havfl examined the audited accounts of C. D. Bramall (Bradford) limited {"Bradford^ end its subsidiaries 
for tha five years ended 31 « December, 1 977. Bradford and US subsidiaries wo co'jecuveiy referred to as "the 
Group"- On 30th May. 1 978, Bradford bacanw a whoBy-owiwd subwjiaqr Ol C. D. 5 renal! Limited. 

a ail .h, subsidiaries have boon wholly-owned throughout the relevant accounting periods except for The 

** Wamnown Motor Company and It* wdwdiwy, Witnngion naoms Linked CWaKtagton Group"/, 

cirth Parish Kldsons acted as auditors of the Group wrougr.out the relevant accounting periods, except lor 
VVantomnn Group ol which tlwy vnta appointed authors wilh oftoct horn 1st January. 1974, fifth Parish & Co. 
aroaiwcMsor Um to Rrth Parish Kidaona as tarn tarMsy.1973. 

* Tun h-faimatlon s« out Wow Is based on the audited aeeoanu o! the Group afcer mating such adliutments as 

* : twiner noDrOprfate. These accounts t»v* bean prepared under the fciaerfeal cost convention including the 

icon&uicr - , , , k ,^n««iiid m tmiui, 

ill,, nntiti an soared and appl ic a tion of funds or me Group for the ffc* y«re ended 31 a December, 

‘KKSSor SfiSp at 31 * December It, cash of 1M 137 = » 1977 and rrf 
' Bradford «t 3 !st Dacambm. 19 / 7 . 

Yeert ftj 31st December 











cooo . 








Cost of safes [other than hems 
detailed below} 

Bank and loan inter ast 

Profit bofora taxation 

Profit after taxation retained 

Earnings par share 
5. Batand* sheets 

Tne balance sheets of the Group at 
Ddcaaiber, 1 977 are as follows ; — 
















■T ~ .• i 



6.S Op 

l December ir. each 

of the years 






















to 1977 and ol Bradford at 3 1st 

31st December 



Current austa 









Stock deposits 







Hire purchase debtors 



Cash balances 
Amounts due from 







3tSl December 
rs?4 IS 







































— ' 






31 sf December 





Correm Dries 

Bank overdraft 










Amounts due to 



Net current assets 
( liabilities} ' 


Fixed assets 



Deferred assets ■ 



Investments in 


(at net asset vjIuo) 




Oefened taxation 



Deferred liabilities 


■ ■ 


Net tangible assets . 

= — 


Represented by 

Share capital . 





Shareholders' funds 

19 72 












_ 608 





















459 640 

The Group 

31st December 

































1,039 1.455 


































Financial Times Wednesday May 31 mg 



Chairman to be president of Brown & Root (UK) Order for British Aerospace 

Sir Philip Southwell will become 
president of BROWN' AND ROOT 
lUKl uii June 1. Mr. B. E. 
Stallworth becomes chairman and 
managing director. Sir Philip. 
Who was. the founder chairman, 
remains on the board. The com- 
pany is a subsidiary of Broun 
and Root Inc., of the U.N., itself 
a Halliburton company, oil mUik- 
Uy engineers. 

Mr. Roger Tripoli has been 
appointed marketing director of 
ROADLINE UK from its N.F.C- 
Bssociatc, the B.R.S. Group with 
whom, for the past sis year*, lie 
had been responsible for the 
development and management of 
transport consultancy and distri- 
bution services. 

Mr. Roy Seamark has left the 
Fine Fare Group and is join ins 
the board or .MORGAN 
EDWARDS, rood distributors, on 
.lime .* as managing dircclor and 
Joint executive. He is also joining 
the board of A YON MILES. the 
company through which .Mr. 
.Midair and Mr. David 
Web<trr. with the support of 
Noble Grossart. recently .-icquirpd 
a 29 5 per cent interest in the 
share capital of Morgan Eduard*. 

Mr. Seamark was a main hoard 
director of Fine Fare, responsible 
for the EFOccvy group's superstore 


stockbrokers, announce the retire- 
ment of Mr. A. S. Taylor with 
effect from July lit. Mr Taylor 
will tic ] eating to pursue business 
interests outside The Slock 


Mr. Philip Beet ham has been 
elected president of the 
national ASSOCIATION of 
TURERS, succeeding Mr. R. 
Stolhert. Mr. Beethant. managing 
director of White Bros, i Derby!, 
ha* been in the >ofl drinks 
industry since 195a. About SO per 
cent of soft drinks makers Jn the 
V.K. are represented by NASf.M. 
ranging from large national and 
international companies :■> the 
local Tamily businesses, of which 
White Bros, is one. 


PANY announce thaL following 
the retirement of Mr. Shakib $. 
Shakhs-hir. Mr. Mahniuiid S. 
Ghuualm has been appointed 
general manager of the company. 

He has been general secretary of 
the company and deputy general 
manager. Mr. Tarnt A. Said, 
managing director iff the Falcon 
Reinsurance Company, has been 
appointed as an adviser to the 
company on major insurance and 
reinsurance mailer-., in addition 
to his re-patisibihucs with, the 
“ Falcon Re." 


Mr. Uarfd Llgiulc has been 
appointed technical director of 
NE1 REYROLLE, a Hebbum 
tTyne and Wear I company which 
specialises in the design and 
manufacture of electrical switch- 


Mr. R. P. Bennie has been 
appointed joint managing director 
of CENTRE-FILE. National West- 
minster Bank's computer bureau 
subsidiary, with effect from June 
I. He has been London West End 
(Central l area manager of the 
bank since 1974. 


Mr. Genrgio Massobrio has been 
made vice-president of CANA- 
SULTANTS. a subsidiary of 
United Slates Steel. Before join- 
ing the company last year he 
was executive vice-president and 

a director nf Haisider. the Italian 
Steel com pans. He will opera Lc 
from Met-Cbeni's headquarters in 


Mr. Edward -Marsh, a director or 
Taylor Woodrow Property Com- 
pany. has been appointed chair- 
man of the WESTMINSTER 
largest in the country. 

• + 

Mr. A. F. G. Bowen, director in 
charge of the Liverpool office, 
becomes deputy managing direc- 
SERVICES on June 1. 


Mr. John D- Wright has been 
appointed managing director of 
open-cast coal mining contractor, 
following the acquisition of 
Lomoum Construction by .SGB 
Group. Mr. .Wright js a director 
of Contractors'' Services Group 
the plant hire division of SGB 



TRUST, an Eiectra House com- 
pany. announces that its chairman. 
Mr- A. F. Roger, intends to retire 
in July, but will remain a direc- 
tor. Mr. B. P. Jenks has been 

elected chairman of the board 
with effect from the conclusion of 
ihe company's annual meeting in 


Mr. Jonathan M. Turnbull has 
been appointed a director * of 


Mr. Arthur Andrews, for 40 
years chairman oC the MENT- 
PANY i maker of Plaiignum 
pens), has retired front the board, 
but remains a consultant. 


From June 1 Mr. P. G. Williams 
will succeed Mr. E. B. Spencer as 
chairman of the Backer Electric 
Company. Rotherham, manufac- 
turer of domestic and industrial 
electric heating elements. 


Iron founders, announce that Mr. 
J. Robert Eades has joined the 
board as a non-executive director. 

RAMBLTAN .announces that 
Mr. Patrick Cavanna is retiring, 
by mutual agreement, as manag- 
ing director at the end of May. 
but will continue as consultant 
for several months after that. 

CHANGING THE windscreens or (ELECTRICAL) <n Hadbn Carrier 
45 swing-wing F-llI lighter- Group company) has been 
bombers, based at Lakeuheath. .awarded a £2.45m -modernisation 
Suffolk, and _replacing the.pyro- contract covering. 536- -houses at 
technic- ejection. system other Carnwadric for th>- .Glasgow 

□lain ten a nee tasks on a.-fluther 19 District Council- Work has 
aircraft, is to be undertaken by started. 


“der * £lm contract' with the WCB-CLARES. of Wells.'** has 
l. .b. Air Force.. : . won its biggest order, worth over 

Once this programme if pro- £|m. to supply roll pallets on 
■periy established -British ■■ Aero- which the goods sold in one of 
space expects Tiiore contra«ts\ ro Britain’s largest"' supermarket 
follow — the hope is that this eon- chains will be slacked and moved 
tract could lead to rurther many ta warehouse and store, 
tenance work to occupy some aty 

least of the workers at Lite billon London Midland Region or 
complex where the last of pie BfcjUsJi Rail has placed 17 con- 
British-buUt Concordes Is nearing traeir; worth a total of £930.000. 
completion: for a variety of electrical, build- 

POLYSIUS has received a £4-8m 111 ® civil engineering work, 
order to act as main contractor from construction of 

for a hot metal de-sulphuring and bridges t cleaning Birmingham 
de-slagging plant at the Scun- station, 
thorpe Works oF the British Steel -* 

Corporation. The company will fbatwpia. i* conjunction with 
be responsible for the overall the stately It. of Knebworth 
design, procurement, installation Park and Hik-point Develop- 
and commissioning. The plant menis. have plac* 9 £47.000 RU h_ 
will incorporate two desulphuns- contract lor the instruction of 
ing stations with Integral de- a skate board pa-. associntc^cJ 
slagging. Hor metal will be treated drain work, fences an. 3 spectator 
in transfer ladles of 300 ion are:;, with -the Hytbf- - cjv| ] 
capacity. Desuiphurisation will be engineering contractor . 
achleved by the Injection of ■*-■■■ 

calcium carbide based reagents. RACAL-MILGO has a --conn 
ALEX ROBERTSON AND CO. order from Allied Bakerf'j ^ 

data communications equipment 
to . be used in . a new business 
management network, operated 
by the company's computer 
bureau centred at Liverpool. ‘The 
network, consists of 46 bakeries 
.and wifl deal with' ordering, pro- 
duction and charging .of bread 
and confectionery to runny whole- 
sale outlets and Hie company's 
own retail shops. 

Welsh-based companies pre- 
dominate among contracts issued 
on behalf of Pembroke Cracking 
Company (PCCi. the partnership 
formed by Gulf and Texaco to 
construct a fluid catalytic crack- 
jng unit and related facilities at 
Pembroke. Work has started on 
all the contracts, which total 
£864,000. The companies are all 
sub-contracted to the main con- 
tractor. Snamprpgetti- 

Raadstone (part of the Cement 
Roadstone Holdings group) Will 
lake delivery of four 50-ton 
capacity off-highway dump trucks 
next month, for all rock hauling 
operations m the Beltrard lime- 
stone quarry near Dublin. Valued 
at more than Hm the(=e 
machines will be used to carry 
material from the rock face down 
gradients to a primary crushing 
plant at the rate of 1.000 tons 'hr. 

C. D. Bramal! Limited (continued) 

f . Accounting policies and notes to profit and loss accounts Bid balance shsats 

( ■' i The principal accounting policies used in Uie prep-uauon ot the financial mlonratton set out in this report are 
c> follows: — 

Basis of consolidation 

The accounts ot Bradford an tills subsidiaries hav l been made up to 3.1 sr December in each vear.The Group 
accounts include tho results; assets and liabilities ot Bradford and all its subsidiaries lor uia relevant 
accounting periods 
Defcnsd taxation 

In accordance with the principles contained in Exposure Draff 19 ol :r.e Accounting .Standards Committee, 
the Group have now adopted the policy ol providing (or deferred lava: ion only lo lha extent tnai it is ex- 
pected lolal! due for payment inthe foreseeable fmure.TheGiaupcominue$ to provide tar deterred taxation 
using the liability method in respect of some ot the capital allowances and other timing differences. Had me 
deferred reunion continued to be provided on contract hire vehicles and stock appreciation relic! a further 
provision ol Cl ,31 S.OQO would have been required at 31 st December, 1 977. 


Depreciation has not been charged in rasped of freehold properties. The provision for depreciation is 
calculated fo as to write oil the cost of the fixed assets over their expected useful lives. The rale of deprecia- 
tion used by the Group, applied on a straight line basis, are 

Leasehold proper i v - equally oi nr the periods of the respective teases. 

Hue vahieiiM- at rates varying between 24% and 36% per annum. 

Pi jnt. f um:tu re Jnd tmings - ji r«rte a i nrv ing bohvi* n 1 0?i and! 2 jli per annum. 

Motor i d‘..clc> - 25 c i pu annum 

Equipment lor 1cu>ing - at rates- cart mg between 20’i and 33J?i par annum. 

In occoidoncn win 5tatem«rnto1 Siand.ud Accounnrg Practice 12 depreciation wifi be charged at b rats of 
2 per cunt, [m-t annum on freehold huiidmgs •-. itn cHect Iront 1st January, 1978- On the buildings currently 
o*> ne.1 3v the Gio up tr.ccrurgi. m a lull year would amount to C9.41 0. 


New vehicle,. u .c valued at cost. Second hand veh des are valued a: :he leww of cost and net realisable 
pnee*. Parts «:id consuntaMc stores arc valued at cost less an allowance lor slow moving and 
cookie Hon.. 

(,?) Turnover icprejcnr* total tales :o third parties (inclusive of excise dut-cs but exclusive of purchase, value 
soa.-dcndccrta-cs) with rental income from vehicle hire and lua»*ng eno hire purchc* interest received. 

(a) Tuvjlian u based cn the feporwd prof its at the relevant corporation tax Mies and comprises : — 

Years to 3!:; December 





197 r 



t 300 




















(2’. Nn <•-. brer. rsid hvFr?Hford:hFour.. fc .oi: the In-e vear perico treed 31 « December. 1 9~7. 
if j Earniatu.pcriharohji D. Bismall Lmitea in issue 
r-'i-icd’.re.y .".ftci »h.=-p;.u -.5 jrd an the retained profit of Bradford lot the > v.-.raiM idaation. 
ti) £'CC-.s vO’.-ri'aO the>3 

Bucio'd Tfir Croup 




« c -j 





New and second hand 


£ 00J 


£ 000 

f 000 

£ OOO 


• vt»h:eler. 

Part-: nnfi consumable 
















' 236 






(ri f.'ask e'ero -:tr —extent d>'po'- t<p*5d W Fcrd .V’ator Company L'nitrc for vehWes hrid on conjignmenL 
7l;e bank oiitxdreff is socuted by 1*r*t charge-? on certain lie^hoid end leasehold properties. 
li’J Fixed Assets ore staled at cost ptvuiuatioi 1 loss accumulated dcptaewiion as follows:— 

Bradford The Group 

s:*: Dream bar oTjf DccktjC' 

7S7? 19-2 79-V 19?J riT5 1?"ta 1?^ 

/T-COJ £ 000 CCOO COCO L 000 CCOO L 000 

Fvef-oV pvpxtf 

£08 Valuation — " .71 ~ 

_ Cost 1?S 379 518 4.2 4/2 — 

— Depreciation — — — — 

603 Net book vcfo* 1S3 379 536 47 ~ 472 6 " 2 

Ltrce ,, ofd property __ 

— V.Juuiion — ~Z 1 I2 1 ;.p °“ 8 

Cost 66 66 66 63 i-S 

— Depreciation (4) i~? ^ ti2) ~ 

— Net book teiu* 62 62 231 " =0 ~~ 3 

674 6ES 670 1.220 1.619 2.0*9 

- Drprecittion Jljb) W) J^} ^15 ) (425) lo3b) 

- Net book value __4M _®0 _905 L194 1^53 

F i**t. ftwifar# & 

CotT** P3 67 153 157 175 154 

D^mcUium _J44) — — — 

19 NCbookvafLB 1* if If 

„ 11S ,in 1F7 

(26, Dcptcciation _J*) ‘ d3) 

43 N of book value ^ ^ 4t ,S *2. - — 

£ cu&rort for.raz-'ff _ 2G 142 

— COM i2) (21) 

— Depravation — ___ . 

„ . . . z _ — — 34 121 

— Netbcokvalu* . 

,,, T S : *! fl?0 1,233 1.719 2.P22 2 -S9 2.572 

1-12 »-cr: _ ies 170 170 950 

f-n (223) (271) (447) (579) (719) 

130) OeP'ivieliOn l ' - - 

— , . 7-jn ,.s:a 1.755 2:‘&0 2 SC3 

lira Net bock •— ' . . 1 , ».-.j 

.. .. , ,. M, — »- • j->. - r* rp?r mfl'Vfl ■-•'•'uv' f'r C '-tir.n a: 3t 

T*”* • - ’I S i-;-l f l ^ " -a : . „ ... , 0 „ V .^|, . ., M , Olu-I ot 

7 & Lou.-««r ■ - i ,f ' p . • . f . ; .i .. p., c „ ni n. ;f . ,.j;r ».c- .in r,.v. n.-*n 

' Iv-'-.-U 1; Wcix. iv hav.m. *• _; ; .« 31 1 Op— oe- .12” F.o- 

r lii!:. i-'u hern • -- - 1 •' ■ «• prepemoi .< ■" .•'*•'1 a: ''■’O" 

• . >, rurch,.-,e dt rrceivabte more fc.jn 1- mohlhs —>ar 

v ;0) 1 he outcried *•,«:' irtate la inrtalmcms :> ?re .ur n-»cn.. ,c m j. 

•achtceritnct imoi 

(77) Loans (mpayetle C" damend or by iart«!re— f =V* br.ere jI»: Dr. 7 ^ Gnu9 

37 s: Datc.r.ser 31s: Doce.roar 

Loans'rom finer :« cor ca' ies Scaling ir.!t'«M bet.vean i.6.»*nd - • 
■bo ve finance house base rate 

Limmi repay* We on dwnwfo and 2 SSKSST 

Loan r epsy obie O n demand and be sr mg ^ 3nc j2% 

Leon repayable on domend and boating interest be- - e . ■ 
above finance house base rat* 


£ r cob 



37 at Dcccmoer 
??74 :P~5 

COCO £000 






37 9 









4 72 
















' 328 

















2.0f 9 

































11 9 

































2 4S9 









2 SC3 

Deferred UaWtAlM (lepavebfo aftar 1 st January. 1973): 

Loan* from (inane* com pa rites bfltri r foi n, '^ b,rtvVMn 3,6? ‘ amd 4 * 

per annum imorest fie* 

(rr> Tliaroeervkstor.prlie:-- 




224 Nr- ■□K'r.:eb> 

3,0bd Drsl:>bufob-’a 

3! s? December 

1 P7J 7975 



















(13) At 31 st December, 1 977 no provision had been mode by Bradford for any capita! gains tax Babilky v.-hich 
would arise rf the subsidiary companies werp disposed of a* ineir revalued figure; this condngent liability is 
estutdied at 1525.000. Neither Braolord nor trie Group baa any other contingent liabilities el that data 
other than as disclosed in note iS,*. 

(74) Ca pital co mmiunemsM 21 bt December, 1977 were:— 

Bradford The Group 

Contracted for butnoLproviced-in the accounts “ A Uf Nd 

Authorised but not contracted . C^5 jCX)0 £45.000 

(75) At 31 si December. 1377 Bradford was a dose company v/nhin the provisions of the Income end Corpora-" . 
tion Taies Act 1970. 

7. Source and application of fund* 

Theconsolidated statement* of me source and application of funds of tha Group are sat out below s— 

Funds generated from oparations 





. 7975 

:97 c 


* £000- 

Profit before t&vaifon 






OepiKfoifon ^ ■ 


• 221, 

. 273 

- 363- 

• 529 

(Prorns) on sales of fixed assets 


1 22) 

' f54) 



Funds generated from operations 

Funds from other sources 

- 443 

535 ' 

791 - 

-1.069 • 

- 1,517- 

Proceeds lrom safes of fixed assets 






Increase in loans (deferred) 


10 . 




Decrease in Mrs purchase debtors idefs-rad) 

— - 



— ■ 


Taxation repaid 


. 11 




Surplus arising on purchase oi eutaidiane* 






Source of funds 






(*19) • 



20 411 

(1191 219 

79 126 

Application of fund* 

Taxation paid 
Purchases of fixed assets 
Decrease in loans (deferred) 

Increase in hire purchase o&biprs (deferred) 
Purchase of subsidiary 

Increase/ (decrease) in working cap.ta I 


Increase in stocks 

Increase/ (decrease) in stock deposit* 
Increase in debtors 
Increase, (decrease) m hire purchase 
debtors fcurrenfl 
Increase in cash balances 
(inert -decrease in Oo.nk Pite.-draft 

linereacb) increditois 
(increas? j/deaeaM m loans (currer.*.) 

S. C. D. Srsmall Unrlted ha* not traded end no audited aceountx have been prepin-d since itsinroreorarion. Mo 
audited acxoL-nu ef Bradlwti or any ct a » subsidiaries have been irtede dp for any period subsequent to 31st 
Decomber. 1977. 

Vours fe'ithfufiv. 

Toucfia Ro&r & Co. Fmh Parwh Sr Co, 

Chartered accountants Citoiioroc accountants 


Pr o p e rty vofoetlon 

The folio-.imo is a copy of a valuation of the Group's freehold end leasehold properties which has been received 
Iron Eddisons, chaiierod sur/eyors ■ 

The Oheeicis. Argus Chambere. 

C. D.Bramal1 Llmiifd, Eioadvs-ay. 

146-1 58Tong SnteE. Bradford BD1 1HH 

Bradford BD4 9 PR 

30th Mey.l 978 

Gentlemen. _ 

In accordance vvffh your irsmictfom we have pleasure in con Riming our valuation* of the freehold and lease- 
hold properties whir!- occurred bv C D BremaK L.miteo and us subsidiaries ("the Groun'T." 

We h.«e earned nut nio^eion. o' ■!’* nroryrti-., v.» >n :h-» rehodi-le bslo-.v and have made relevant focal 
e-'.nuiriik* t-nd obtamee .'-.--.r. ' in'rr-n.mon .v. c ipn- t)», n«e'r„jp,- tor the puroore iM ptnvidir.g you wun oiir 
cpinioii o! tru- value ol tee Gnx-P s p»opr»ti»v. vhier. i? on The basis of op-.-n market value for eustmg u 5 e as at ihe 
31 sr March, 1 978. In our opinion ihe value ot the Group's properties would K.vb been no different as at 31 si December, 

In arriving at our — Vua*for* '.-■*■ have ntrt r-ie» »rv e'fo: u-'p ot tV-en we KrtcM arv-ppsimjl -.»-,airen 
fobiiitv- on me Group unare aev'torrerer'; land isr <s< T-piia. gairre ib» legisUiinn. IV; ive«e not inciuilaC anv ii'ed 
or teased ga*age pijn: or •cvp'-ren. We have not tar.»n mio account any nongagei. financial arrangerrrants or hue 
purchase cannans.vhrca may exun. . . " 

The usjdi planning rne-.i-inhj’.e bee™ made c 1 i H “ si-honri« .r. whose areas the picorrhes are located 
and wo ha-.-e relitd uson mat mn gr-ec :a c*Br u .• nv ^ ac *i aut r>o»iq«s 

In our ooin-on the :«a! rearVe: ,«iue of the G-oup’s propemu. a* set cut in the schedule below, is £950,= 00 
(nine hundreo and lilr, thousand fi.ehur.cied pourcij. 

Year faithfully. 

• - Endisons 

C harts reo surveyor* 


7 14S-1 JBTong SrMt, 

2 Cutfer Heights Lana, 

3 Parksidr Road, 

4 Ravmor.d £^BSL 

B Mount P.'ase. 


6 Meur.: Press, 


7 «?a':s>*p3Si 

8 27r'‘a'rePcad, 

S E '- ! s'r ■ Pe- re* £:a-ren, 
Saharre Rood. 

S rupic/ 

JO Dalle'-- Lar.e/ 
C -.- e- Srrf r-t. 

f 7 Owen Street, 





as af 

s :t area 

bmltfirps .n 

31st March. 



igtt'9 feat 

■ 1973 

rraificid sho.'.tpom.y.-p^shea. 




sterai oif ees. petrol fo-e court end 


ve oisoio-/ a-fo storage e'-:as. 

Freeho'd shovr room, works'-np. 
store*, officee end vefficte storage area. 

3 60 

26.1 E 2 


Freefroid v.-orkshop. 




Yer'cle storage a >u f«!d on pe-ieo'-c 
tenenc-/ i.iagoiie ,, ® , 's are ir. harm U leas* 




this area for a frva year term). 


Fieahoid v.oriuhoD. 




Lease 'tofove‘1 fete storage area. Tftp 


— - 

- - Nil 

lease is for a term ol *ive veyi fiom 

1 stfebriuuv. 5 976 at a fixed annual 

real ai of £375. 


Ltisi cf dV'o»-. , 6om. \vo; fohon 

■ 0J35 

8.S02 ' 


\t *.icte a«pfa-.' a-ea. T*--e mase is *C m a 
term of 96 veara irom 1 st September. 

1 562 ax a Urea annual rente' ol £ 1 .000. 

Le asef-od a howropm. wore ? 
pet'c' ‘orecoL-rtano vyhicie c-'-r'ar 
a-®.i lease literate^— p!95 •. e-re 


' 6.791 


J-r 1t-.Swiv-vfcxi.1960 s'. » li. fcd 
am- vr renra of £475. 

t*a : s 'r.o pv-eH 'c'^coj-ia'd ■. •-•■t-e 



Nil - 

r: jo.» . o-es T -c - -■■ea-iciiiv a: s f r -l 
a-'-iui , ien:s:o* C2.S00 e-pireC e-> 1st 
ADi.l 197S i'd n^ponetrorta an-, in 

t ano for if- re-'fivsl. 

• “ ' ' 

Le«:er e'o ft'-Qwneonr ■; •••. or'- *ho-i*. 




*ifiC*i a' 3 cvaiaa ano .Tp'age 
areas .‘eld unuer :nrei seperam tea-, es 
1c r a ;* — ct 75 ear;, tron- 6m Ju' 

1 272 vvitn tu«-.; igv-ews a: in* 1 bin 
•, cr ond thereafter every 7 year*, “h* 
current toul annual rental is £12.570. 
Leasehold vehicle siornge area. The 
lease -s for a term evpirina on 
5 i *t Jin uar,. 1 979 a; a food ren:al ef £830. 


Statutory and general Information 
1. Sharaeapital 

(i) The company was ineorporsi«d as a private eomoanv on 9th Januanr, 1978 with ?n authorised caoifol of 
£1 00 p.ndefi i"lo 100 sharaiol £1 each, of which only f he 2 subscribers shares were i^ued. 

On 3tfth Mav. 1P73 reWMul'Qns were passed at an enraordinary genora! meoiing wherebt- fal esch of lira 
100 snares ot Cl arc Cowp.-invw* «ub.div-tien 4 orrtinarv shai«-> ol 25p#-aeh .and (bl rh^ aurhorosd 
Cupi-j! ct the Campar.i »«■•, .-nacascrf Irom Cl 00 to Cl 0.000 by Ihe creatron ol 39,600 ordinary shared ol 
SapeaCh. ’ 

ImmcdiaTeK'fcBoivi.nft ihe rrreeiinc fa) a total of 680 ordinary shares of 22p each fincluding the cubseriMrs’ 
s | -ai»s) were alfoncd O* iranrirerad for cosh et oar as Inflows:-— D. CL A Bramal!. 320 shares: (C Kaye. P. 
Enrol and D C. a. Sr.cri.ill •ioimlvi, 200 show-; Tivoli fMom Miflas) Llmnad. 80 shares: Guernsey 
Irvi-stmenw Limr.ed.SO shsres: and fb) atoiai of 16220 ordinary shares of 2Sp *ach wera'^ilottcd. credited 
•« Wl paid, n the r.oMsn of :*i“ whole ot the issued share- capital of Bradford in exchange for their vhaies 
ir. I net co&siru au.-wam to cor.-ract 5 fa r below. 

Cn :™* -aTc dav, rsyyfoS'oiA v.ere p-^.-ed ai a further ertraordine-/ 3*neref reaimg '••-hereby fal the 
authcrivcd capk»: ol the Comcaiv was increased from E10J300 ro C1.750JJOO by lire creation of a lurfher 
. 6 960.000 orortwy ■haras o! 25o eoeh ; f h' 5.OS3.O00 OMfinorv shares ©f Z5p each a wwre Issued, credited as 

hilly paid. io end amongst lira then therehofoers m the Company by way of caprqKteatton of pen of tha share 
pramiuro account: and (ef tha Company was convened Into a public company, for which purpose new 
AttMttOf AMKflwtawmidgpibtf. 

(ii) Sava as dfsslosed herein v— 

(a) no share or loan capital of the Company or nf any of its stibsie _ 

years immediately preceding ihe date of this document or i s r?> terired v.i.hin thetwo 

partly pa id either lor cash or lo: a consideration otherthan cash; proposed to be issued, ftjify or 

(h) no commissions, discounts. brot’cragM. or other spec ral tenrs havB he- . , ' _ 

. aryol iu subtidariei within the said two years in connection with :ne J an,ca Gompanvorby 

capful of such companies; and -.or wlec.iany*j.dreortoan 

(c) noehatB or loan capnnl of ihp Company or of any of iis subsidiaries is u. 

drttphaUy or uncondi Ivor ally Lobe put under option. 'option a' agreed con - 

(iii) No material issue of shares of the Company (other than to sfiarehe’dert pro .-a.V. . 

holdings) will be made wuhm one s car ot the dale ol ihi-s documtni without prior apD r,T «. are- 

in general meeting. -dl ol l '- e ‘-ompany 

(iv) No issue of shares whieftv.-ould affcclnreh- alteyhs conirql of the Compel/ cr ihe natu-c _ 

be madpvvithota pobrjpproval of ttioCompanvibygenetul meeting. * 3 business will 

business will 

2. Subsidiaries i 

The Company has the following subsidiaries all of which are wholly-owned private companies 
in England:— . , ; r 


C.D.Bremaff (Bradford) Limhad 
C. D. Bramal) ( Contract Hire) Limlfod 
Woftsomvot Shtpky Limited 
The Warringun Motor Company Limitad 
C. 0. Bramali (Leasing) Dmired 
Piogrc5s Finance CompanyLimited 
Wainngton Tractors Limited ( dormant ) 

Dare of 

inenrp oraiion 

•17th May. 1957 
26th June. 1£:5B 
Blh August. 1 966- • 
4lh April. 1919 
5ih November, 1971 
5th December, 1 961 

. JL L .*:id 



3. Contract with Barclays Merchant Batik Limited 

Under contract &(hj below, Barclays Vtaichant Banl: LirinlM ha* agreed. f.uHed lo lha whole ot the ismed 
■hare capital at the Company luirigad' the Official ljslbvthe Council ol Tne Stock Eu:hange not later than 
9th Juira,197B ft) lopuicusseat 7Sp per share from Mr.. D. C. A BramaM a total ol 1.333JH)0 ordinary -shares of 25p 
each in the Company, being 26.1 per cunt, of the issued sh^re capital ; ano (ii) to piece aU ihuio £ lures at the km 
price. The contract provides, mroi ait#. I natthp'Gfwripartv will pay fhs iexpensin of {and incidental to) the application for 
Ihe issued share capital to be admitted to the Othciat List (including the costs of printing, advertising ires document 
and ail accountancy, valuation and legal expenses) and a fee to Bardays Merchant Bank. Li ruled out of which it will 
pay a fee to the stockbrokers. 

4. Articles of Aaioc wtion 

The new Articles of Association of the Company, referred to above, contain provisions (Mar efy) to the 
lolfovrina effect >- 

(>} On a show of bends' every member presont in person shall hoie one vote and on a poll every member 
who is present in person or by proxy shall have one vole tor each share ol which ha is the holder. 

(Ii) Subject to certain exceptions conforming to Stock Exchjngn mouirements. a direcior shall not vote or be 
counted jn the quorum on any resolution of tha board *n respect of any contract or arrangement or other 
proposal whatsoever in which he is materially interested or concerning hi-, appointment as thy holder 
of arty office or employment under the Company or any other company in which tho Company iu. imereated- 
fiii) The ordinary remuneration of the directors shall from ti-ie to time bo bv t.l-c Company m 
general meeting. A director may hold any othei office ot place of piotu under the Company (e.w«pt that of 
auditor) in oonjiinction with his office of director ur such period and on such it-im* (as la rtmunaulion and 
otherwise) ae,(hp direclors may determine. Any director may an bv himsell or his lure may .act in e BOJh-S- 
saonel capacity tor the Company (otherwise than asaudiror) andsDall be entitled la remuneration therefor, 

(iv) Any director may continue to be or become a director, officer, servant or member of any other company 

' In which fhe Company may be interested and (unless otherwise ep>e*rt: no such director fhill be account- 
able for any remuneration or other banefits receded by him vs a director, ollic* :. esn ant member of -rev 

such other company. The directors may e/etcrea the voting powws conferred bv tlw sharmi in anv other 
company held or owned bv the Company, or exerciscable by them as directors of such ofhar company,, in 
suen manner in all respects as they think fit. ' ~ 

(v) The directors nfaV establish and maintain or procure the establishment arfrf maintenance of anv non- 
corriributory or comribetpry pension' or superannuation or doath. disabtsmenT. sickness or other banolit 
funds for tha benefit ol. and give of procure the giving of donations, gratuitres. pensions, allowances or 
emohimenui to any persons who are or were si any time directors or otffcera ot the Company or n) any 
subsidiary of the Company and holding any employment or office in the Company or any subsidiary of the 
Company and the wives, widows. fatnSies and dependants' of anv suen persons. 

: (vi) The aggregate borrowings by the Group'frvch.'dlng inter-group borrowing:-) sh-iff nor without the previous 
sanction of the Company in general mealing evened an amourn c.qua! totvcotf-c dggmqaliof the amount 
of the paid up share capital ol tne Company and the consolHJatL-cuipiial and revenue reaetves (as dslined). 
(vii) Thera isno age limii lot ihe ieiitenwiuoldii«ciois. 

B. Material contracts.. 

The following contracts have been entered into by ‘.he Company or its subsidiaries, otherwise than in tha 
ordinary coui»e of business, dunng the two years preceding tht- dale ol ih« document and ms. motcra::— - 
(aj Dated 30lh May, 197Bb<jlv.-evoj(1) the Company.anri {2) iVir.D.C. A. Brar.^l'.ind Cither:. v.-hich the 
Company acquoed'ihe whole of the issued sliart-r^piial of b'ndfva forih,-im>r<irid'jllainiyniuirdiied 
as- hilly paid ol-aiotul-ol 1'6,320 ordmaiy sbetes ot 25p in tn>: Compan -. 

^ (b) Oared 30tlr May. 7P7B ter-i-ren-'M > Mi D C. A. Bramali- r?) ihe nf ! u » Comnin- i3t tho 

Company and. (4) B aic Id ys M ei chanl Batik Orrmed. being the Conirdctn-feirid to in paragraph 3 above. 

6. Direct or*' and at hor interests 

I.) Immediate!? following in* conpledcn*. of this plac’mg. the dimptcitr. and th-ir in-n«di-)» !«.- p'ies mil be 
-'m‘iora^t?o >n 3.i<n.700 bhann ol the Company representing approvimaiety b'j.b per tern, oi :na issued stidie cap.ul 
:: ipecilicd below: — . 

" : i . Ordinary -'.hsrrs- 

Director - f'vreJicw/ A'on.penc'.rvt 

. D.C.A. Bramalf . ; 1,682.000 L&00.000 

T Allison : z ■ 6-.700 Nil 

- ' X. - F.-Sidda/f • ' • • - ■ - 2.000- Nil 

•: . .- • -;.*fl.NLPickmg.. • . • . T.000 '-Nil 

(ii) Immadteteff' lolfowing the compfotfon nf this placing Tivoli (Mom MjllaWl Lirri'ed will hn!d.6QO.OOO 
■hares reprasennng approximately 11-E°J of the issired <Uiare con/rsl Save as difc'osed h-rem ihe rtirec;o-E are not 
er.aie ol any holding whicn. immediately lolfowing me completion ol this placing, uni) 5 per-cent, or more 

■Ol rhe'is&ued share MBhaf Of rhe.Cpmpany. •• 

• (ur) OniOlh May, 79.73 WCh of the-direefo's-nf tha Company eniered info a ti:!f-t:r>g senif ■ agrntme nt 

v/iththe Company ioraien-.i enoinngon-alst Deaemb«.r. 1 981. pr.acr thos's-oamKrT.-r.:-. ?'r D. C. a. Bromailie:ei.e9 
"a minimum annual salary oi £12.000 anti a'commi**ic*n of J. per cenl. nn ir»> riisr £1 ** rm.lion or Group profit before 
ta^alion and of 1 per ceni. on -,uch prolit in exees-; ol £1.5 million: M» T. &lii,pn. Mr- r i- « ,rinq|i. jnj *-if. R-, M. 
Picking each receive a minimum annual salary and bonus totalling £ ! 0.000 in the cuneni tear, ruing to £12.000 m 
the tnird year. ... 

(iv) The aggregate emoluments of lheti>i«rtor$ of Bradford, including pension contributions amounted 
to C63.Q4& for the year ended ilsi December. 1977 and under lire airanoemenis now ir tome for ihe current year 
are estimated lo be a minimum of £42.000 excluding ar.y commission payable to Mr. D. C. ^ Bramah. 

! . ) Save as disclosed director has or ha&hao anvmaiena] imeie.-:.on>.-cl or indupct. in anv assets 
which vriihin two years oi’ihc date ol this document have bean, or are proposed to Ire. acquired oi ditpoocd of by of 
leased to ihe Company or any of us subsidiaries. 

(vi) There is no coniraci Or arrangement uibsisting at rhe date of this document in which a director of th« 
Company is matenafly tnleieaea and which is significant in relation io !ha Ouainsss ol the Company »nd 4£rsuPsidiarrBS 
taken -as a v.-hoie. — 

(ylii Mr. Philip BroaLapanner in Firth Perish SiCOw is Birustse Ola Bramaii family trust which holds sharaa 
in ihe Company. 

7; : General i n fbrrn e tion ■ .-,--j - .; 

(u Siionfell and apportionment clearances haw-been obtafoadforeilre'evantaccounliigppriodTro 3lst 
December. 1977. Under [he coniraci referred tom paragraph .5 rb) above Mr. D. C.A Eramuli naj ineamruf-/ 
the Company in respect ol anv depletion of fhe Company’s and Ha subsidiaries’ asset* b" reaior of cina-ri liabilities 
lor raration, capital transfer tax and tuaw duty. -Clearance under Section 464 of tne' income and Corporation Taxes 
Act TS70 has been obtained in respect of Ihe Company's asouisrtfon of Bradford end in connecnon.svrihi this placing. 
(■■) ~ he directors have been advised that following this placing the Company -,vni be a clpsa company. 

Oil I' So Taras the directors of the Company are awara-lhere is nometwial uugauor. or any claim of material 
importance pending ortluealened against the Company or anv of. iJs subsidiaries. • 

. (iv) Tht ioial-e*penses payable in respec; o! this placing and anplicatipn ter a Slock Exchange iisiing arm 
•!?d to be £ V 04,090 e>ciusi\vo> value addedta .->nd are pa-, able by me Comp.-.r,-, 

(vi Touche Ro.-i & Co. and Firtfi Parish 5. Co. have gn-en ano noi •.i-ri->dr.r.-.r» ;hcir rfispecri-.e ■■•■'itte'n 
enneenis to ihe issue ol this document with the inclusion i herein- of then report and names in i L io iorm ano conte>; in 
vvr.ich they 'appear. 

fvi) Eddifgire have oK-pd ? the'irjvritrFn cqrr«s-i.s to :he itj-ue of this docurreni '..•* 

inclusion therein ai their vaiuauori ano name in the forn anc -onie r\ in ’.vhicfi v 

(in; Nopiocca-ds in reaped ol tire sale of the sharesnow be-ng placed are to be received by.l.e Company. 

8. Documents available for inspection 

Copres ol i ne following documents will be jr.-aifabfB ter inspection at the oTicrsof Banrlavs Marehant Bonk 
ti-r ;sed. Dashwoon .House. :6P. aid Brood Slra^H Lc-ndon EC2P-2£c and Rateh.C. Yabfon. Tumote- MiTna* A Carr. 
Bridge House. 24 Sunondge Road. Bradford BD1 2 AD dunng us-^af buemess hours oa v.ceKdayii (Saturdays and 
public holidays e v ce pfod i lor tv. penod ol fourteen da ,* from tr.« dale ot itv*. document : — 

(j» the ntemorerdum and Articles of Asrocraiionol ih« Company; 

• • (iij me auditt-d consolidated .recounts ol Bradforo and each ol ns subs. diaries forthor.-.-o financial year* 
ended 31 sr December. 1 977 ; 

(iii) t he loiniaccoumanis' report and si stamen; of adjustments; 

(ivj. the vafoaiion by Eddisons of the Group's freehold and leasehold premises; 

(v) th® mmenal com tacts referrod to above : 

(vil the service agreemenis referred to abevs: and 

(vn> dhe written consent sof Touche Hoss & Co, Fmh Perish & Co. and Bddieona referred to 0iiQV% 

DatetT 30th Nfoyj 978. ‘ .. •' '' 

Copies ot this advartiMment may ba obtained from 

BaWdaya Merchant Bank Umrted, 

Dashwood House, 

69 Oltf Broad Street," 

London EC2P2E6 

Hedderwick Stirling Grunt bar & Co, 
No. 1 Moorgete. 

London EC2R6AA 

Ralph C. Yah Ian, Temp lo-MUn«a & Care, 

Bndga House. 

24 Sunbridg? Bonf. 

Bradford BD1 2A0 

' Barclays Bank Limited. ‘ 
Fioalan Square- 
14 Commercial Straw 
ShefivtWSUNG - 

Wednesday May 31 ..J0® 



Initial loss reversed net 2.5 gain 

Dollar easier_ 

ns. dollar was generally I ^I'ERLU^ 

gold market 

SUIT 30 | 


■rfti 7R!C1NC1 FROM the long ran* to 

The U.S. dollar was generally 

(Jnlil PiiiMon.- . " ;• 

S18MB1»4 IfllWSF 

OtipnlBC..-.; JJ". - 0 . lanajft . 

MiimlBK ta «J 5 Jf.j 5 il siCMMl . 

. 1 *! Si*** 

NEW YORK, May 30. roreignw^^ ?f a 

1NT ‘ . t . ,7^13 but Banks contrasted «"* to* ""'rise" oMtl* r »* n 

, ear, «« 

S*g‘ « 0 Vu^^°“ were - ] gl 

*&: as«irSJ= KCMfe saw**® 






Dgc.WI'W 1 

ti«iidC"in.* ••■ I . . 

18 «] L . > 184.166 

KB ^ mI ",£105.100. tfUUntD 

““•^sssfc. ®aa« 


sv Wall Street s ao-.‘*- h - day j 

1 industrial observance oi ncwSt Kuv/* 5 Motors firmed strongly, with 
;!Lri a In the economic nr\<f. ia ' Yoikswacen saining DM i, while 

TOKYO— Market displayed 

holiday. hut after an easier start. thp weekend. fe - improved 

»~rs« fre o5 

c *abb aw 

^ a «*“ t8i * BO 
1 mi ' KB 'hAR* 

D€E JA» 

- anal 


GcM Com. : ' 


^■■^jissr ssss&i 
o- *^-sssS&. 38 ® 

sa toiw....'***™- 8 * 011 sa?BU87tI * 



; Dmwuje 1 p«no* t 
• TBig faf i Acoom m, 

foreign EXCHANGES 

lair tirnun? result™ ■‘""L 'y„rice the noyai i 

lion that the April consumer pnc_ vpr{? un ci, 

uuu w.a. - tomorrow. ” T-ibn added li at saa— 

'"**«* “= ur ps- “ u J ad as wall , ? ,0 ^:>6ntrols. down 2J at S30. £f e , 
r M , had ^ifrst S cv peeled, after £ oh,, *“3fred an option from UV JJJf 1 
Mre l n Jn!eekbv Admin is- has ae£ l0 buy lm G i obe shares buy! 
conimenlj. Ust c £ ^ ro , e at l " d ^each and has proposed a p 4 

n oTpi? Sent annual rale in - % v ilh Globe. Square D. « 
?, P n, Sh had offered SS7-25 a share , 

^Anaiysts ascribed luUe sismfi- y Globe, slipped I to $24 i, while Fref 


Batik — - ; 

rmp: p*;; » I 

j . S(.(wrt - vw 

continued appreciation in Tokyo, but some the Queensland Government 



S:,» t' Closing rf 
l rail: '3 pn»‘< £ 

v-lri R-.lV.> _ Jli (Mn 

P-n-.i'-» «-nnvo: 

*??*» ■ ' -Iw'jnn 

e . 11 nr M.-Prrranu J5W 

.1 U.l. n«,rt|in 

nrt inc'f. ... • ' Tin 

inc “ tool Uanisu Lroov < 

rose S3 to ; |*SI25 q 

; the sharp rise of silver dhus, gutwo . | 

London Metal Exchange. French uwk. . ■ _ 0 iudu.b> 

Errand’s premium over Imibu v™.... “jVS ' 274.393 
■nment rose to a common i l^ali ' 

, 0.670889 
I 1.2 1922 
i 1.36231 
: 18.5351 
I 40.2768 
I 6.93239 
' 2.57717 
; 2.75783 

rose to a common J»i*riewAnL 6 f ^. £B9 

_ * frATVI 9 -Tl > , VrW»> KTOBV ■ JiffS 

gpjjt s™* «- “ iasrs^w'ssr *-• w-,»p ?a «sj« Bssst' ?sl 

Value Index finished 0.09 higher F as helpful factors. YI.i r9. tendency Jardine Matheson advanced 20 per « nl J° r =- -u- i«.«. . . ’ 

s rr c ^jss.' Bta “ sss irrswaffl 

CANADA— A firmer tendency Jardine MaUje»n I and 2.43 per cent in the inter- s-wim nanc.. 




y”T“. 7 j|.»|aO ilMAU»IM 

aw 'a.osia-. esTOJjattija* 

S” ■■:, /ssss^tada 

& •tocsw 

gsP,H '&sv&sss& 

ST-"-- r 

■ Sic 2tJft.Z7.T8 Jl.85.rjn 

i,SS5r: t *-«4 Aa * 

8.48 8.41 

408 407 

of 3.03m shares - (3.26ml. 

OTHER MARKETS cenl rise ,n lhe AprU rela11 P ffl vhfle Golds featured and Hutchison Whampoa 7i cents 

OTMtK 99 index. U*** S an advance of 23.6 to HKS4573 Hong Kona £nd pxch&nQE CROSS-RATES 

__ Gains ranged as high as 11 per g^fSAi 0 . Metals and Minerals and Wheeloek gamed 5 cents s- 

GERMANY — Stocks further cent, the most P r °"”l^" lb D ^n rose &! to 986^J and Util ities 0J_I apiece to HKS7.S0 and HKS2 -o_j _ ■ 

«„..rnnpH ncross a broad front, issues including Poclam. Denaln. rose 1 respectively. ... w ^ 

^ dianced ^ — I . .AmoM d-imer^ Oiina - r^T^rZu -« A 

ing or the tail w t^din- conditions. The Toronto Bank 10 cents to HKSia-a tw«™ 

from 1 1 per cent and the j-l per traain« cunu i u a t Pacific also 10 cents to HKS6.40 

cent rise in the April retail price Composite naex «8J mred d Hutchison Whampoa <i cents 

. Rllles jrtvrn tar vun\ , exu61e fTiBefl. 
Finaucul IraiKS 60.15-60 ^- 

*■•— vU.tI El. 



2«l i'<(l A; 



N,Sp» Rum 

tpniiM. I.406-I.W8 .\rgrtiilns-IM8jl4SI 
. . I HM/. LS15r Aii-trJL....' n za. 

^ respectively. ^ m i nnikmn »■•••» . * **"•' _ 

aatlPB'«« ^ Among second -liners. Oiina oTrZtbo 1 4S63 73 

Xl«y 30, 0B •. M«r 2& Light, HKS22.70. and Hong .Kong r - raD k«urt r - -U06-U*O ( .^~ 67 

nST i l SoiTSoe' Hotels. HKS1AS0, each dnubed eaat ; \- t . 

eat s eillj ISt 20 joh5Swesburg - The *%**::, ju «g*L 

“t * j ^ *i! "irs; B n r r -g ld -^^ , -■■” 

39- 63 62 Bu |i ion price. Business volume f.S. S in T*»niou>»ltij 

«■»« fairlv low. trade having been c*n».Ji>in s io s«r Vort^-S. 

— mZ limited by the strength of the ^rUng in m.i«» 1M»I 

1 Securities Rand. 

4tb I Ujw Mining Financials were gene- 

' ifis. mo , itvTv rally -around previous levels, but 
,ga!b : tre^a ijoi> Amgold lost 90 cents to R-S50. p.mDnurv INTER 



Mnv May ' Mm ' M«V . 
30 M . 25 • 34 ■ 



54.30 54.14 54.24 54.3G 6^68 

.Mncfi compiHl it 

May M«i 
■36 2 d 


32 Hipii 

; Low 


May , May | My 

B34.M 831.38 B4&.4I BS7.B2 645.28 835.42 858.57 

I031./0 41-22 
'. II I -?oi ' i2 i aZ i 

88.14 88.13 88.2S 68.13 88.31 88.51. £.«' 

254.09 MS.70 224.14 224.56 227.80 231.40. Ml-M ‘ 

184.87 104.47 104.13 104.05 104.56 104.67 U0.« J^-94 



ion iso 74 180.88 181-71, 183.61 <23.61 

1 ISOiOT lSflioi 1 188.97 190.65' 192.86 i23.fai 

i uruveiri Uji-iuo 111 

k 460 4 ID 3.?>D-fc4o tfc.3a-4D 

4S .63-73 6.460-413 

Issue, cradled... 










■ 829| 



Vc* Htitha 







°^Sa5 SmK \tSSSSm -K..« .or May ». 

■ cljbaw ui^K.Vruii a 4BJ-4.481 Henmarl... 1 I8.&-4I 
■a**M Ofc K " n *- ji6 lit iFimm-c....- 8.5W. « 

11.10-16 1 Q4M-0.H4 Ucrmany.J3.7W.Hl 

, j.aai : 94 HLMM 1 ^ 

111 job-546 iSXil IUUV- iwaww 

— \ toUii H«t 1.7882. 1.M7tf J«t*n .... 

jiaii.ii Anna 8.21-6.61 NMI«m u.l «.»-4.M 
SlmitipoTO .1 4.234-4.2B.1 { V*» V,~ 

S JST I M»-I.BaSl PiTluaal -I 71.85 

182.30 1 16.2) 
170A2 (30 h 

TORONTO 1123J2 1 122.0 ' 1122 j U2i.< H«J i«^ 

.30'i.edi <a » »2> 

T-a'i 'i-: 

L'.V- ‘ 

1.040 21.410 28.410 31.450 33.230 28.708 



l nit uni rials 

212.4 210.6 : 210.7 
S2S.0 223.7 224.8 

218.7 «t 2. 
225. B i50.cH 

188.0 i40 * • 
184.9 i I d 5i 

NOTES : Overseas pnm snoivo Uelou- 
trzdude S premium. Bclzian dlvtdrnni 
arc alter wirtihplrtlnB tax 
A DM30 dfnom. unless otherwise stated, 
yields baaed nn uai dividends Dlu» ias 

- RM given for AncenUDJ la a free rate. 


Siteriin*! i 



■in inaa 

FORWARD rates 

Urn? niinilb 


Hi,,,. ,.| h,.ir-. 1.. nai; .* i-ni'i~< -* 

Mm 26 1 

lu.i. .*!■». \ IC'»I •% T7T 

Pre- 187o 
nous Bigb 

■ v ■ a: «; .wi ss ss-aiK. agn; 

,i/i 103.41 - ’ijMo.rt-f TZsSZ™"* ^lonna^Tscbi.Unp ^^r.^ UV^k 

-'"■“r.s 1 ??: on t ssK 

* L pias 300 denom. unless adwrumc stau-d « scjvn. flT , 

* Kr ?W denom unless oilwnnse Stared »««« £ « jgg 

T un Hr-niin, and Bearer share# M-nib . i-.? tT J 

v„- vnk ,0 40-0.30...i«n 1.3T-1.QT c.Vw 

?^»^^a:3o o.3or.U 

Year apw lappr-'s. 

Auitrolia^' 499.13 *1** 

Selgiom «;• 96.66 M.£3 wuic! Sweden 

iJ i 103.41 

l Lree month*. lOSa-ll 
si\ DnuDlli'. 3t_ l a 

4- a 5 'p ■ 
8H-64* I Slyal"_J 

Km-tMani 21 b 3'« .l' m 
Bru-vM-.. 9S 15 .|-ni 
Ctil-'uligit. 4 -6 i«n? *if' 
FranKturt t»8 P* l 1 " 1 
QM,.n 85-lBbr.Uw 

6S* 6.W pm 
'80-oS- 1 . |-m 
iQ.Jl orr til# 

7 ip -6 la |4 P» 
iluO-SuO l-Jis 
14 J Z2U e. ill. 



MaV Mat 
26 2a 

^ : 

Bijth : U»w 

Denmark 1 -** 
France ni' r '^ ~ 
Oennanyi^' 777.* 
Holland as.i 

iO.O 71— 

775.5 6L4.I 

id'Ot i2i;s* . . „ _ ‘iiV n Gross div. h .\ssmned dividend afiei 

93.13 94-CO 5wit-erl du 290J 291-2 '^‘a, ^-*I vn^^nd or rudirs issik. k After low 

•Art, - if.2t ..l*Si. m . i tM rree- e Francs: includimi 

— — dir. »No 

Indices and base dales 'all base value- and yield esduitr 
tOfl creep! NYSB Ml Commnn - a" caied div. a Umrf 
Standards aim Poors - 18 and IW«* holdeia antr.Ji 8 
3061.800. me las’ named naseo on 19 ?d* • Bid * Traded 
t Excluding bonds t «"0 Indurnato fiA 1 

; tulUTiri.ii 107.08 106 

•,L •tiiiiT.iU 95-86 95 

iss a* a. aii.ftS i-jajr “ssi"!ps star 
,7. 0 , «... , At?*:. its, ou. it B w?s ra 1 SS tt , "iSE“lSf; 

tr C* ruhts. *d Es dividenif *c Ex 
:«Se. aa Ex all. i «««rtnt since 

to da»"MU« for aulldere and Sulss francs. 

1-r.t .1:i. VTCl’l : c 

Tear .40 .appr>.x.i 





In t. !• K Kai 

ijS 01 , iiu-ii aE t /i/n imparts Bourse iv 
u«. *07.07 107.21 *t*?.»l dW.W Commerabank Dec.. 1968 «H' * m * pr GERMANY 
rt-wti dam. industrial t#r« iUt Hana S«w Wltnw 
, 315.40 516.71 316.71,292.0 Bank 3I'1<M. <)', III MUao 2/X773 «ai Tokyo 

.6, ' *29=i *m Kew SE 40/B8. (bi Straits Tuom IW Mav 30 

td Cloned. uti Madrid SK W\S*ft 

c«* Stockholm industrtal trt* - S8. tl'SwiR ^ 

Bank Corn fui UnavaltaWe. \1inuuVenJ1 



l>lv. Yi.i. 
% ' t | 

", Five i +*ir 
I Khion 1 — I 4 ■ » 

— I twbi Glass ...... 

Bata 'Com ta, Unavaltablo. _ anto VenJch^.i 465 i + Wj^S SSTr."-. • jg 

Inv . , Prem. I2.R0 to W08% |^i£SU |?! 

Effective rate (*1.8185) 45i% (4«i%) 296A»d 44.2 ! 18 . 8-0 SUfsKwIiZ: S73 

i ^ i S—SiSCinj-.+ffi ” ! !: a TZE^zz 1 '*™ 

3 461 * 46 tT Woolwortb 191 , 90 SSSS^q jggjj 0 j }J , tSjT=ZiuS 

hSS “? .iSssi. sa SSsaittiiag Missjsr^-a 

128.88, 6.0 1 ~aalo-.. 

I i.-.vl, ILui.i t lehl 

140J;+0.6 ; M Chta— 



: 31m 

Al l- *t Lalw- ... 

30 . 8, : ®01a 

AHm UKttlM 40 l J | 52 

V„ I’n -I.. cl' - . 28*6 ■ 2 ° 

C.irolna Ola«..-- B5S * 

CPC Int’n'Uwiai 4«7 ( 

Crane- S?5p 

Lro.rJier.NaU I 26lj 

Crown Zeltertwdii 934* 
Cummlu- Enjtlnel 40'* 
Lunisr Wngbl...; 181a 

Johns 11am t lie... j 32 J 514* 

■ . at 1 nm. < r 7 h*« 

.[.■liiiwm Johnson, 
Julinaon ConlnwJ 
■Joy Manuiaclur'gj 
K. SlarlLorti_....| 

hat#er.\iuonufn]i 32J* [ 33'4 

Keynolds Metal «4 Sllfl, R- J j 881* 

Kkb'itQc Merrell. 24U 

Ko-Lwelt Inter... 3i|a 

Knbmi B*J19 335* 

470 | i ta ' 1-3 1 ACM1L iSb cent) - 

B81 —3 i ZS-i 2.1 1 Xcrow Aurtcalia...... 

340 [.„ 1 ao , a.9 1 .VUie*i Mng. Irrtp. lnd»81! 

935 ! 1 18 ; 1.7 1 Vmpoi E*t*Mallon r 

571 ;-6 
243 '+1 
578 >1 

i.3 1 Ampol l 'etroleum. i 

2.5 1 .Vaeoc. Mtneml* ' 

i Uenseti Hank | » » 9 l fl - a 

to.7o ISXS ! ma-io » | 9-2 ' 

t2.50 i^-Ojbfr- j. .| t , 106 OtI l 

H IS aa±R^ Ug*tiJli^ wsr- va» 

Slav ' May 

,lmx. Pulp P»V«r SI -( 

.S .VS A""**. Con. lmtustric* ■> 

J® ’ ?, 3ui.t. FoumlatUm Invert.... 
! M AM 

SB Imi saag 

!i:S UsilanAza 

tl.00 j+M-2 

U.45 May 50 
tJ.52 *0.M | 

\ivniiAi.imtiiiuiii 28 

\iif-j. I.'nliun,... 

A.icvnvll* •'•■“vr 


ntvWH ... 
t. iMlmers.. 
\M NX 

Vhifivk Hr— .. 
\tiu i. \imiH-.. 

A tun. Uiali-t*. .. 


A -in. tau 

Vn.vr. LA auamei 
\iiui. Uw. IN’** - 

A •■'■l.iV--. • 


\i,.. i. Me-lwaL. 

Allil'i. M. M «.i-.... 

\ iij. i. Nat. lilt*, 
fti. ^faii-lat'l.' 

Vi.ri. M»n- 

V.iwt. lei. A le>-. 

A* *• ei ...... * 



A'iii« - v 

Vn.-li-i H-vkiiiu- 

\....,.iim"i Bii-i-b. 

A I M«*l 


I .■uifia Hi. 


\-ii.nulMit. ... 



M * 

\i'*i l’r»«lu.'ti ... 
Kn’i t*"» I- 1 ** <■ •• 
B.viK Ainnt 
t**iiki'n. 1 1 . X.Y. 

n»,ivr ini 

IUMvi Tie * mi 0... 
iiniri.t t'-- 1 ... 1 
Hi- ii.nLn ■ivuKii 1 

hfii \ •• 

Hin !• , • 

BfDitiKl Cilia ‘H 

lirtli ehem »teci.- 

28 • Usna 26TB 

44t* . Hail Industries. 42's 
183* | Deere 391s 

• 17** Uei Mnuie 26 

40 !« I UeUiMH 125a 

23*i ■ ik-iiis**v loier... lBia 
3 13a Pel r<>il btlxti . in3* 
34 UiamuiuialiaiorL 283 b 

; 32 's : L>ii-in(An’iiv 1S»« 

ilig liiaita fcjiuip. 47So 

495(| • Disney - Walt ...... 4U3* 

49 'b . Lh>*ei (.1.HT-U 43*2 

4UU 1 1**-* Cbemkal.... 23=8 

: ZBSa ! Utavu Mia 

: 21T 0 j Umssmlt... — 4Z 

1 3713 Du IVui 11S « 

Z93b i l«j m*. liulusinn aut* 

I 24 3g ; baaie Picber 23 5o 

I 6^* ' L»»i Airline* 10 

, 45*g i thiiman K«»taW.. M 

| 46Jo ! Eaiou 3«ia 

2?1» 'k.U.AU .• 26'' 

P3 ; El Kami .\«U Oa« J6S B 

33 ! Bum - aa 

i®'0 t Emerfttin tlftinv 36flo 
«'u kittvr> AirFriabi; 4a|i 

: Uiuliart - 

I K.M.1 233 

: “I hJart, Wt 

1 **;• **'•" “i * 4 

I • 17ti [ talicblMLaioe™: 335* 

, i 28>; ■ fnl. fete, simr*; 38 >i 

. • 605, '■ Knv«ti4ic 1 ire. . 1 331* 

30, 3 K4. >*t. Jftprtmi. 49 

'iZ 10 , Hr\i Van ' 

,< 24;* ; hlltllh.ile 245. 

* 52t; 6' I'uwer... 30 

. • ZSTa 1 fiuiir 374 

26Tg • 26Ta 

42'a 1 48U 

391s »■= 

26 26 

Kaiser Iciustnc* 2 

Kaiser Steels 22 Jb 

Kay 123* 

heunm'll ; 25 n 

Keif McOee ■ 473* 

Kidile Waiter 333* 

a*, | 23 t, 154 

iSi* alii ! Ko^ Loz* 1 42 U 

551! 471! i “F 14 * »y?«™--, 

■ <1*,; I ■Sale way Mi,r*s.J 393* 
Si?® 47^ ! 71. Joe Miueiats.. s7>8 

til' 525 1 *. «esi» Pkper... 1 » J« 

47*! 47 S wnui Felnd.-..' 35U 

*5?® «« ■mv.mln-1* 8 >2 

35l! tfcbiil/ Bren inji- 14o« 
, olio -ibiuoihereer 751, 

44 Sg ! 44l 2 3 V* 

ia» • 187a tJoe Duurfer 

Io, 1 ® ! Knnl-em Cut* ..' 471? 

43'2 i 43 la 
25SS 1 354, 
384a J 28"! 
42 ! 41>i 

115,4 I 1 IS ! 2 

301* 1 30'* 
234« • " 22'a 

KutiperH £ X‘ Z 

KlMU 47** 

| mi^tei to 4358 

Ustreway rmn*.., adj, 

U*,iMiaui» ; 354* 

■ U0l"> On.t'w»t...i !*6i; 

Lionel Uioup.... 

Lilly ibii 

. Lilti'U Iudu*u... 

' live =Ut> lifts.. 

I Iaiou 1 -lain I Ltil.' 

56'* ; 661, 
itoe ltol * I 
lnu ; t3U I 
sou ; iso-b 1 
393* I 40 lg 
*718 .87 

29i, ! 29U 
35U 1 35Je 

6 ' Ba* • 

Wool worth...— .- 


Xerox... -f 

Zapita ■ ■ ■—■■: 

Zenit b Bmtio 1 

U.S.irw* 4*19W 
L S.Trea.'*ij75^&! 
UJS.40 DaTblU-.| 

I Ataltmco.^ 

— | ~ 1 Aina. Oil & Oft* 

JglS-Slbloe Metal Ind 

18 1 3.6 | B^ugninitlle Copper 

[ Pom - |"+ or ] Di^TE 
Crux ! — Cm.-, % 


Lnut-taua Lain- 1.. 1 1:4', 

Alls • 31U 
44 ig i 44l 2 
18se ! 187 B 
23U ; 22 
20 191* 

187, ; 1&>* 

I Abiubi Papei 1 124a 

S5 £ I A^ok-o bftjjie. 4.95 

yfl Mean.' lurnmuim a* 1 , 

* l = | VWraaStW : 20 U 

144» ! AsbeaUW.^ t39U 

?«• Hank ui Monitea l 21 
J 5 ,’ I bank XovaseciUft 20 -b 
H*“ k- Kesoureea.. 75 U 
21/® I Hen Telephone....! 57* 
“e ’ How Valiev Ind—l 28 1, 

I »94,^ Uynkwboir ZeinUJ jQno! + na| *, | 3.2 .\yiXcMLeiainiC —'3,850 1 35 | I HH Swill — 

1 183': Ouieboffounjt — ' ■« , 5 o Jlsuuablui 1n-i...| 718 i + l I iju 1 J-? * Carlton United Brewery - 

I 5.505 H-PwUovrl j 115 9 ‘ 5 2 SISlBanft.J 278 , ' 10 C J Cnje* 

Hardener.,.. 287.0 ■ tlii*tiMrtii Hoivai 12B — 2 1 it ! 4.7 j i/gjtt (Jit 

UiAeufast — — ^39 +0.1. 1 u.r—M.h, •••n-.. 416 [—2 13' 1.6 I loob. Goldiieldr Au«t 

»<«* 1 jal' 5 1 04 ! 10 ! 4!l SjtilSui™.:?, 331 1—3 ! 14 :a.l container, St, - 

_ 140 '-O 8 1 9 3-2 diUukwtln • 667 !+10j6u 1-| I tunrinu KtotlnW 

May 50 May 29 ball uc>t sals. +1.0 20 3.9 x »pp*'n Uensn .1.350 • ■•■•■■■. JS nSjCiaitaiu Ausiralta .....— 

. 124* - 1 ano c i‘.i lie 79 4.S : 'lidjon >lilnpan..- 716 ’ + 26 - 12 O'? Uunkiu KuWwfSll — — 

toi54 — — 1— aiw I 1J» I+O.OSlj.12 Jl.f* 

• fl.14 -0JH deuppitp Brwii-J 2*33 ,+O.BBa.l7 1 1.50 

’fl.43 ♦8.81 oucoltiii..— .-1 1.25 • -j®- Jh 

t7JJ8 tJebro MineiiaOt , 8.25 l + O.llklle 5.3J 

tl.12 t4MK Ln& Ainei.OP..i 3.38 .*. O.I3,'.*. 5.92 

1L86 — — PMTP'na.* PP......' 3.02 - 0.01.4. 1 l 13.3 1 

12.00 Pirelli ‘ 1.80 |-O.0irtj.l6 8.88 

2u 1.4! Carlton United Brewery -J 

1 10 1 1.8 1 1. J. [ 

i 12 ! 4.7 LtiUtSll - 

I 13 1 1.6 1 mu. Goldiieldr Aust.......] 

j 14 ! 2.1 j Container tSL) — ■ I 

1 fjj ' VI - Cunrinc Ktmlnlo ] 

; ;2 , no ! cWatu Australia i 

1 *7. Uunbip KuWwriSll — 

I ^ * hficoft.-.j. 

l*^so I nwsn.'rr 

12.00 ■ ...••• Pirelli 1.8° -O.07jJ.16 8.88 

T3.05 f*0.0B .soIwaLrusOP. . 3.20 ! + O.10l4.23 7.18 

12.85 I Co lu PE. ] 10.20 1. .. ' 20 1.86 

»2.45 |. Vale Kin lh><- Pl'| 1.30 ! — 0. 14 '.13 !0J» 


W.67 Irfl.W 

Ltjwenbran 1.450*1 

Lull ban sa I 112 i-Q.3. 

MAX 180 '*1 ' 

, Uinn^ niinn * X56-2 t3^ 

IS : .+ l' 3 ' it 3:3 Marine 238 

l“jr3Ji IT U: ^Chemk*).; Mg 

205 ; :.L: ts;K 

+ 13 1 — I — mkto Marine I 486 

_ 1' _ ■ - iirtiio Kiect IW'r 1.050 

+ 11 23 ! 6.7 *ukvi> oanso I 310 

Km* 1,770 1 + 10 

391, i 391; 
861; ; 25 '? 

23' 1 , I 24 

"JJ 1 s ’ Lnhnacu • 

39t; ijbHtf,.. . 

85i ,, 1 C'ke Y*une t'wti. 

167* 1 \ln.'Mt::an 

32 ij I'lmyK. H 

35 . A ' Mltf. llaii-yter .. 

46*o 11 ip'* 

36 1.! I Mamlipm CM .. .. 

2*7. | Marine Mi Hen. 1 . 
24 1 Miii-hnli Kiel.. . 

“f ' uea Lm lamer-.... 

; -eaoeiO.U.t. 

?5?8 1 TO*r Koelwk.-.. 

! vBUCU . 

*; • j ti bell Oil - -t 

11 « I ■siiei- ttau-t-ort— • 

405a ‘ilana. -I 

Tz, . iigomte Cotv- 

* ■simplH-lly Pal 

BP Canada—......' 135* 

1 Brascan 1 

1 Bnnou 

MeaiUie- , T i ■ ^ ■ *■; 

UuooUener Uuok -] 520 '..... — 18 } *■ 

.seckermanu 1 123.3 + 1.3 I — | — 

PtviiMBU DM 100.1 114 t1 I 1 

• Lai^urv Power— 37 », 

lUaemU'eH j.iect.1 187 ■* l.l 23 , 6.7 

48 Vs i hkter-?mlth I 

i 4 | K.Z. luituatnes- — —i 

I Vo ! ?»■ .fTeperty Tnitt- 

ri Vi Hooker — — j 

11 , ?■“ IC1 Australia — — . — — —1 

tl-50 ; 


;u.95 I | 

Vol. Cr.148.4m. Shares TO Ora. 
Source: Rio do Janeiro SE. 


t8>0 ;-+a.06 , MINES 

f 1.50 p9-2* 1 May 30 

f*| M ’jJ) (W 1 

IS'22 : IS ni Anglo .American Corpn. 

caradow Mines. J 
i Cana-ta 

I (Jaoaita X W Lan.J 

10>* 1 Il'M 

La nl rap Uok Com| 284* 

■Muuet 1 8|i« 

MuitttKiioe 681, 

'la* Dev*, et-re* 24 Jp 

MIA 52i» 

McUcmB.ill 30 1, 

M LVmieii Dl4ui- 

. M 4ii*» Hin 8.1's 

■ Mcuv.+ex 461, 

ovuuvu - ■ 

eouLlHiun o ! 

southern Cal. Ed 

>.MlUei u Co ' 

• 'itlin. Xet. Ka .... 

Causiia lodurt— '20 >8 

I Lau Pmdllc I 18‘B 

I Cau. kb irtc lor.. 807a 

! Cau. auperOi 56 

' Cariln* O'Keele..! fi -40 
I <JawflilrAiiesu»...1 10 



dial Zucke... 

tuysren A.G- | 

Varta. 1 

i + lln IjB.lZ 1 , 5^4 .okvoShilwnm— 143 

I 141 

—0.5 '26.66' 5.5 "n*« Motor ] 

118 A +0.5 .!?.» 7.2 

Source NKko Secomiea. Tofcjo 

VEBA.. I 105.5*1.3- 12 [ 0.7 

ft- . ul' oou 'IB 3 k 

fi 1 T o I lcl Australia - 

“IB I iSSSSossr- 

t'i JcwesvlMvid).— 

“ rs Usunarfl Oil— 

.2 MeUia liapiurtUion 

f* i-; MIM Howlnjia..: — 

2 j X Icbotaa I nieroaUMal.— • 

line Xonb Bwkeo H'rtlna* !i*k: 

(Jak bridge. 1 , 

Oil Search — 

lo 3J5 
1- 3.0 

Inaa Ln'm 1 Charier Comobdaied 

SIS r!r:. 1 .. - • 

ti.35 : ...... aannon y 

*1.30 Kinross 

*0.36 +9.0S Kloof - 

10.46 +0.W Rnstenborg PlatUmm 
12.33 J— 0.06 si. Helena 

36 Rand 

Io .American Corpn- ... 5-31 

ner Consolidated T 

r Ortefonifcin 12.3d 

nxrg 1-W 

nrany S.23 

ross 6.00 

it 8.M 

itnlrarg Platinum 1.23 

Helena .......... 113.40 

id.40 I CqW Fields SA 

veteran We»tBk 285*1 

Vi'HiviUMn 206 ir7 

‘I; I:! Brussels /Luxembourg _ 

.IUU. l T Hl -- W 

o.«ithein Pa> ifl J 32 >a 

•3vut bemHai I war : 49 1* 

211* j ll.ii.-k 

Merrill Lvncb.... 

Alma Ptnn.'ieura.. 35s, 

IB l< > 19 J, 

l-.M.l • 

I'.+iJ Al<4er. 

K,'n>ni"4 Sri 


Prank Mu Mint....; 

Kreci-+t Minora^ 

' Pruclpiul 

, taqua Ind^. 

Ml. A1 4Si« 

Mlnu !J ins*. Xlta o2?s 
M-'Lit: Lor," 64'* 


M.wnM>.1.P 49 

tli<i-n»i 45 *» 

1 MurpU* l»|i 407* 

N*ti:«.-i 49', 

.NakoCbemieai... 28 
XaiKnai Can 18 

Da-kei I? -'8 

Hvwtna IS,- ; 

H.Tten 1 • 

P,.ijt Warner 1 

B-anilt Int. i J® ; 

Hramau *A 

BriRtm M\eta— : aBI B • 
Bril. IW. Al#K...- «•■* • 
Hivwkway lilas. ..• M*r ; 

Btun-wlA J®!® 1 

Bueyrti* trie... . . Im ■ 
B u u.\a Watch... oh • 
Buntnt;iLH Mbo 39 s, 

CimpW.' W« “i 

ttjiaikin IWIh. 1] 
t auai Han-ltf',*.. 


*.*r-ici Mietteml J1'8 

i alter Hawe». J® 1 * 
8 1a 

l r Jiur-e Lui i I'll 

Central 4 &■"•••• 13 '5 

( mainteeil |*. 

Le-ns Ain ra't- 31'* 

, nve Manual.*.. 31>* 
i iicuiica' HI*. ^ v 
1 l|e^?' 1 '2ilPl ,,,,, ■■ i’ 5 * 

* hn-wsw-lem . a3 
t u. acu Kmla*. 

tbroiuB . i*i> *“ ■ 

Linerbina... - 

- s®a5 

XT _ 

i,,.e»aeawiL+ si a 

Ciivinveruiw.- » 
u «CUi«. 7 1 

uaMlW" ! 

Lwira- Aik"»* n ”i_ fi 11 ' 8 _ t 
l*4uinld*Ub*..:.‘ S6i* 

*!.im.ln* LVu ' Ain : II s. 

^•mburtlub bun. 3| * 

« .tmlrtrtwa bq ... 
i.-ip'* lb “JJ* 

iWw'UiOBjW 41. 
i„ u ,.n.Mielli«-. 41* 

tSSi-waW***! US! 

t,.n... In-. ■ 

* ourac ■.•• “VS" eat, 

tawsi 1 


LL-niue-'®; 1 *"- 
L V l»IIIMI»t*>b‘-' 
L^.noeuiarleie. ‘ 

uoniwi V* 1 * S3 


I ij.A.K ; « ! * 

liaiiitetl.. 43 

Li, • bvn. A uwr. Int ... S'! 

sal? !0+r-» ?5» 


,a-„ | Uen.blet-1 Mi!*.....: »“ 
l;,i! [t.cucnti K.»w la.... 
ablj ! I'lcneral MU Ik..... 29 3 

151* I i, B „er»iM.4«rs...’ fOJs 

33i* ■ 6+n. IMl*. LIU....; 

167, 6vO. Mjiuai 1 M’S 

181* juc.lei. Kiel.... 2|3* 

6t? luen. Trrc. 26J« 

391- I |, nlr o/.. ! 

71»a jUtm-p* Hiwhu’... 

341; | uetiy OH 1 ISo 1 * 

28X3 i ?8 

liu ‘ Gillette 

28 j, i sii-nri.b B. 1.. . 
121, Tire. . 


54 • c 1 Iiwj* “ 

RS-'a l l.t. Allan I'a.-lea 

Xml, PiRltliei'. 221* 
Xmt. sen Ind. 16ig 
Nattunai sieet-. all* 1 

I XaluniAs 451, 

: XL I! 54 L* 

Neptune Imp. .. 19'.* 

Ncn h-UR'nn-l bl. 211; 

lei t:u”'*nil Id 33)'* 

1 Ntrtsani Mouimk I4tj 

X um«™ Bliaie. ... 10 

\. L ln-tuviru>. 18i* 

. .V Tie, h& Webern 2o**... 39. 
-Mliurtaln H*i H53, 
>Uiwe*t An litre* bB ; , 

• Ntl/i* c*t ban. vrv '*&H 
XvUvtt rtsivD... 191? 
O. vi leal* Peir>'i 24 -, 
'••■itiT* Mm her.. 9l ! ; 
•.Mih' hillwti... . 17>* 

O'in 13»j 

^UUIIRQJ ' V81z \ 

, V»'i Banibare*.' !s7i* , 

5|«nj Hulun.—. 19 : 

P|ierrv Kami 413s ; 

'• **ult- ^7aa 

■*\pinbuil tirvn<[? 27 I 
' Tlil.Oi iCa.iUTDia 4 IS, | 
tL-I.Uii Indiana.. 5ulj I 
31.1. On ijhn> .....! 623* v 
. ;iau8 Ctwtnic* . 42s, ; 
'teruns Drua— ... IS 1 , j 

niulrtwker 1 64 

, 42 

. eun.L-tremt— .- 44*4 i 

. ji ntex 283* 

; lecuoioj'or...— IO** 1 

lektrmii*. 40*2 

I Leieuvne. .......... 106ti • 

. 1 flex..— : 6=8 ) 

. renw ; 3HS . 

I .. lueitain — ' 181, 

i Lomluoo ' 28 ig 

j un> Bathurst.....' 275* 

j U.'Bnjnm Oae IT ", 

j JLV>aeka Keauu rou ; 5 J, 

. L'jntaiu Klcb ; lan 

. Daon Dev- ni t Big] Mine*. -i 69'a 

, Dom Mines— ..( 87 

Uume Peupieum 60V* 

AMSTERDAM *.Vrt*d _.|2.A25 -5 I — 1 — IJautbiSi 

. Price j+ ur> Divj.Yid. 84. Br*. Lamb..-! 1.580 [ ||j 0 j Q> 3 Wwtern Minlan 106 cent* 

MeyjQ : Pm- | - | * j * .1? 1. 166*1 -4 jl«« 8.6 ffriretK 

A bold iFiJOI. i lOlW-4-l . «21 I 3.6 ^L-^ 1 B30« * 5 |l7V ; 8.0 j 

iSSl’SS'.aiBij 4S5iS: 

sasswM *^-iS n ibssszzjlSo aa 

Sr^^ffasSaiSaH &BSte=S:?S 1SU m 

I Dir. Keck itt A Oni mao 

4 01 I Pr-- Y11I. H. C. Bletfib 

_ I N« i I southland Minina 

■ . — 1— avaraos Exphjratlmi 

-5 I — — I L'outb (Si 

L>oralnluu Bn, ter t*:P 

4H- 1 Uiitnur 

gyj- i UUIA-Dl 

634, I kaxaM’RC Sickle. 

13 '6 I 13 Sg 

A bold iFi^cn 1 

AksotP'.aJi ■ 

Alaeni UnkiFIlOCI 
A31BV (Fi.lOt— .1 
tnimlank fF'J20)j 

itijenkort 1 


Port Motor Lao..; 78'; 

tO .86 ■-■■•I Union Corporation 
11.30 5 1 De Beers Deferred 

11.75 MI.W Blyvooruinddil 

to. 14 ] ...... Earn Rand Pry 

to.48 I-Jjn Free State Cednld .. 

il.57 +0.IH President Brand 

?2.65 \ Presldem Stesn 

♦0.76 . Siltfnmeln 

10.25 Weikom 

t0.47 -'-ILfll went Drtefomeln 
tl.92 1+0.01 Western Holdings .. 
lO.oS • Western Deep 


uenrtai .. 27 U 

<.'iaui VelVtolK 13i, 
'uuii Oi 1 Canada .' 26i, 
i Hawker st.i. Can.! 77, 

, Ho< m^er ■ l52u* 

, H-juie UH -V ' 39 

i duiiNi Bay Mny. 121, 
: Hu.|»ki Hit IB** 

Er^Toi as^ia \i kjE 5 ^ 

aassssg »"« skss 

Hoc W .w«m (PLiOi| 57. 6 0.5 fi JoHna.— 

tJuuter D.(Fl.lOOi| M.-l----- “ _ vay 

N.UM. iPi.lOtn-. 180.*5tjj 26 I 83 traction b'ect 

Ini- Muller I LA>|..I 46.1rf + JJ S'2 . . - 

Auiuen rFi.lOi...; 4 ®'5l -0 ’ 7 Iv 

Nat-Xellnv-lFlltt H3.0 1 "*? I i'S 

SedCred BUtPiAk “JSIq'bI aa ■ 6 J I 

Ned Mtd Bk lFIJ*d 189.5] + 0.6 I 22 . 6-8 I 

— ' aeci 

i An^lo-.Vmer. Indnstrtal .. 0.30 

: Barlow Rand 3.M 

i 1 Jlk, i ' n 7 v T ki ^4 Investments ;i.«J 

Price +or|Di*.|IW. Currte Fmaow 0.67 

1 its- | — 1 rr »- 1 *> De Beers IndusmaJ lO.jfl 

79a o' u. a 4 1 ain' u 8 EOsm* Consol Ida led Inv. «i J3 

Edgars Stores t3U» 

403.0 + 1.3 ;2 1 lb. 5.3 Ever Ready SA 

3tB .......... is J. 6.5 FedmJe voltabelemtJBS . vi.a 

f or I Div.,£hl. I 
— 1 Prs. ' i 

-70 -J-W 

3.Msd -0 K 
5I.M -MB 

rtu-iufl U11& Cat- 43 Petroleum 11'., 

Lena.. ! *4^ 

LewMCuii 213* 

1'e.^aa Inoi.tu... . . 781, 

LexiuUllMliav..; 321* 

1 icui Loin lea... 20 

luue lot. ] 43s, 

! I imer Mirror : 29U 

lunken - oO't 

; Irauc 1 375, 

1 lrsu?raeilun 16 

Iranwco 18 

Iran- lnK>n_ 365* 

tinn-wsv Inir'i; 26t* 
Man* UnrM Ai: • 19>'s 
lnteiicr> 1 3&5, 

I.A.C— : 185* 

iai«w i 535* 

imperial Utl 19 

i I ocu 201* 

14 1 3.4 rue (Jen Banq 
_ | _ sol- lien Hebfi 

12 I 4.6 luMn *--- 

_ 1 _ *» vsy — 

9(3 I a.3 traction h'*d 

«1 J:5 i ^fVSi HI [ il° ■ 30 ! 6-3 i ^SS 61 ^ 

785, i 76a, 
321* 31aa 

39 r, i l»rL N.'iih Inui— 

18 ,Ure>L— “ 
(..ull 4. Wc+icni.. *4 
If? !li..tiOi Zfj» 

! HaltbUIWO 3 ‘‘- 

f*" 3 • Haniut MlulUit— 35 
ii'* tUim- htesw- .. l| l : 
24^» , Hartt* L'-irn 

321* {Uf , HS r. ,| 3 • J* 

• lieuhtetn s48 l ; 

111! HewtH l*ark*til. 77U 

41- • Hoiutav lunr * *'0 

27.--* '■ f® 3 ‘ 

23H ' HiHivtwcii -5 

IS'* ; Ho p-LoRLAniei.. « 
42;, ‘ llwke Nat.L.a ; a® B 
g l.t* 1 Hum 1 Pb. A 1 Cbm Ji®* 
11. 'C 1 HJtuu iE.P. 1 .... . 56 

W !+; ■■J- " 1 - ■■ : » 

18?« | Inccrvoii Kaud... |^J 

ili ! ‘niaml Med 

*®>8 ltl#! 

itueiiR (.erutint - 
t.iuenv 1 1 1111**1+.--- 

Pm-iii itat 

P* til,. 1 Luluiuj . 
I'a . I'm. A. L*.. 

! PauAmV.irl.: An- 

1 ri C»;inpn | ,:n . 1 195* 

1' Haimrr.c. 25at 

Piel*. 11 lut 

I'eii. Pn. A L:.... 

P-nav .1. 1. 


I‘r«. , |iie» IJrua .. • 

i Vague* (iv 


l.K \\ 

i-Vli L-eniuit !■«•% 



LU l 

, LIII.riV: " 

•.111-41 L-'aiio rp . 
L-ii'v-ri Lart>M».... 
mit.n LemiAeim 
l moil Oi tall... 
Lnuvi I'iu.iiL-.... ■ 

[.1 la<— • 12 1 115* 

! iuiau.1 Nat, &*».., 1 l„ , 1U&B 
mt'k^TPIueLinr., 16 | 141, 

tvAWcr Ueaourvc*.! 143, ^43, 

ijiurlh'iu L'yrp .... 85* _85g 

| v LL'tn.'b'.. 14.85 I 4jBO 

! •l-;'ii>ili'uuioe'1i.! 187, i "'0 

lUuri Fersusot,. iti; • *3 

■ J.-luijrt..— i 25 1 ^4ag 

\I-nce ■_■*.! i4i * 451* ' 38ft, 

' lltfuiiUmaaieRS' 3 £j • 3-5“ 
, \ j* .ume*.. 1 BBSs I 28'S 

xvnwo buerej . : is ; w's 

\i ho. loieci'in....' 29 sg 1 "?B 
. A uinac Ut: A £ia», 38 *| *4 l * 

, -Jikwtwl P« r ’m., 4.65 j 3.7s 
| I'aciltcLopiierM : 2.00 | 1.91 

«t&a=d *gglLl i “ j a i SWITZERLAND 

Uiufa UeHltet.!!!.. 425 j— 2 
Credit Com FrVr 103.1' + U.7 . . 

Ci eu-wt LcJi-e. 85.0' + 8.6| — S — 

Ll nil I nr 839 ] + 9 

Pr. Peiroie>..~— 130.5 +0.5 
Uen. Ovklenta+ 189 

if c&l I M01ln ® 

'r« 1 no I Pretwrta Cement 

Protea Haldlnm 

" Rand Limes Properties 

I IJamlimTuI, r.HUNi 

SSS ”" -1 Group : 

74.8 +3.8 1 5.7! 8.1 SAPPI 

I'akhued (FI. 201 J 
Philip* IF'- .Mh-vJ 

ttobeeo ffl «*»-- 1 

43.S. - : - ! 

26.41 + 0.7 17 1 6.4 1 
61.01 +4.4 1 - - I 

lb8.a ]A26fc[ 7.6 1' 

■ Price ;+ or Div.-Yi-i. fmelai 1 

' Fre. - % \ % 

Koilncu |PI*SH 157-f. 1 T-. I r.l A.uminluiB 1.270 

Itorento'PL aOJ-.-j .^l-l! --.■■■ 

! BBL-.V 1.730 '+5 

Unilever «Fi. aJi.l U2.7*d + 0.2 42.: 
Vuln^KeB.IntSlii- 40.2 20 

.' 6 1 Llfrlll Jlll-ftP. 2.125 5 

i j • L'ccImj^hLI— 1.655 —10 

*•* 1 . ,.-■ , > cen^: in 

t> I 2.3 
1U , 2.9 
22 1 1.9 
CL • a.6 
22' 1 4.7 
16 : 4.7 

tcilaiRB 199. 

LTJreal I 790 

LeltuiI ..,1.779 

74JB +3.8 5.7! 8.1 SAPPI 1.90 

123.6 + l.a — | — C. G. Smith Sugar 5.75 -9 

199.S l +4.0 19.77 S.6 SA Breweries 1.2S +n 

790 1— 18 16.97 2.0 Tiger Oats and Mat Ulllfi. 9 *0 +# 

779 U6 ifl. 76. 2.1 Uulsec L07 

SR liii / 2 9 i I.? Securities Rand IMUM* 

518 U7 12,6 2.4 (DlSCOUDt Of 36^%) ,+37 59j[ 3.8 

MldirtlD “B" :i.470 l+ll 3*J6 2.8 

Moer Hennery...! 518 h-7 12.6' 2.4 

M'nilintn 170.1+3.1 3 J 1.8 

West lan’du. Bank] 4C8.W + 3.S ■ S3 . 4.0 • . ' vSSbZ 1 ?. lasS ! £ j 

S8 ' 4!7 

f C , i r . I Ifil I fR| ■■■■■■■J.Ba.l*! 

lu i 3 0 ' l ’ ecb,u *y 

8 ; a.9 1 ^'TiiiVKIoirt ....■ 

— j L*’. (Miiiai 11... .17.760 • - S5 j d.7 K^TecbniqimJ 

I nteriogd 8. ....... -i.faSO LU , , 

I Jeliuuli iFr. UAl .1.415 . + 1Q > 21 - 1.6 Poulenc ... 

I .Nestle (t'r. 100>... S.390rt — 10 |e«.®| 2.0 ji. UwU« In ...... 

; L*. m». t ^■ig5f 0 -;2i-*;VLVS^hituwi,ni.,i L. 

Y,-». ] OenikoDU.ik ,!SO-,i.A80 — 40 ; 15 f 15.0 ^ uii ; 

i | Pirelli tlPtf.lO.' 270 !...„*.■ *0 1 0.6 leiemec*nlque_. 

jao tuEiFr. 4aJI..;3,7S0 35 j Eo | 1-7 ihumwm Umndi 

U.l. Do. Parts Cert > 472 jN.— 1 I 46 j 4.8 

4.5 t bin lteCtsKlOlil 290 „■ 12 I 4.2 

9.8] -iuiarLUtfc'.lOOlj 845*1—3 [ M ,4.1 

7.3 1 awiuasir .'Pr, +4W 835*#' + 6 | 10 j 4.2 1 STOCKHOLM 

.s. ci He Potr4ie.mii 
('*□■ Van. Pei "in 1 
i*dtuiu , 

' 481a 

334 , 35'S 
3215 • 1324 
fib'* 1 tlB>* 
4,1 J 4.00 
1..5 > 1-7 


’ Pnoa ! + ui 
■ Kroner ; — 

aa 7g 1 i’Mcc * «"■ 

14jT . ThacerUevciUtmi' 841* . 84 as 
NHTt : rt««*rL*<rp)rai‘i I 15se | In.* 
I ■ la • *137* 

Aiidc]?banken ...,| 
Burm'-er W 

135 i 11 


H+ium iE.P.'.i.. 1 *j». . 

I.C-. Imlu-inc*...' rei* «8 


Iniand Mee*-...- ' f” ' . ts * 

26L12 2b0.73 

hllL Klasmirv. | a 

luu. Harvester .. 
l mi. Mm At bent 39 -v “2 - 

luu. Man it(H»i«.- 17- . 

lllO* - - Vi * 414 

'Vi'- **'*' 34 S3,* 

Ini.' kVaihc: 13f* ■ *3'* 

int. 1*:. A re-. . «};s 1 \-1 

!.«•» llerl _ .... » il.f 

Pei-Ltn blnjer 221, 

Pel 43 

Pbrei 32*8 

I’Uclb* Uaiee..... 264 
PbvA iviubia tie. 174 

l*iii:i,i Muft-ie 86'* 

mhiivjrI ... 

Lililal Bralat*--. 
L3 Bmtuiirj........ 

. wsliiitunift 

Lith «... 

1.U siee 

■nice .. —.....' w 
^uebcu »iuniei>ii| 1.39 

.ooipui > 34 13 

.tool ;i*u IQ's 

1 ,u>i AiKnni 313* 

IUW-+I lik.oi Can.. 314, 

; iiuya r Trurt ..* 187a 
I jcepire U'muwj BI* 
seagratue.w 28>* 

UaiL-ke Baali.^...i 1211s 1 , 13 

i K, 4 A-<1ui Co. ... 1634 sl +3* 

518 U7 12.6' 2.4 (UI 

170.1'+ 3.1 3 | 1.8 .... 

161.6' 19.U1S.S 

94. B 1 + 3.6 7.5 7.2 SPAIN V 

277 +8 m m3D 

386 +9 17.25 W K 

>« Lu I - ass- 

A77 i , 1 ■> 017 1 a 7 *Sfl-nco Bilbao 

&R5 *10 07 148 Nre*® AhMUco (I.OOOJ 

a I 2*1 Banco Central 

103.5 +3.7 9 ! 8.6 ga,,,,, E^ er)lir 

•\ i? I leiemecanique^.. 
1 * .Vi thi'mwin umndi. 

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1 287.0+5 1 UU Banco Riapano 

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Banco UnmUo (LOOS) 

Ranea Vizcaya — 

Banco Zaraeoeano 


; Banus Andalacla — 
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- ] — Uddsbotin j 54 - + 1 e— I - — Tnbacn IBS. IS 

I Vo ! to [Kr. £01 ! 74a i—l 8 | 8.0 union Elec. WJI 

8.2 LsDiirtlk KrSCI 7TI.6I 

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BO . 

"Financial Times W&dneSday May 31 1978 

farming and raw materials 

London silver price 
jumps to peak level 


Call to end 
Indian tea 
export duty 

By K. K. Sharma 

NEW DELHI. May 30. 
INDIA'S TEA industry is pressing 
the Government to abolish the 
export duty of Rs5 per kilogram 
in view of falling prices at the 
auctions as well as the effect 
of recent hailstorms on tea pro* 
duction in North India. 

Current auction prices at 
Indian centres are markedly 
‘ lower than the peak levels 
during the early months of last 
year. Reports from London are 
that prices for ail leas from 
.January to May are down by 31 
■ "per cent compared to the same 
’ period last year. 

At Cochin and Coonoor in 
south India auction prices dipped 
by 33 per cent and IB per cent 
respectively compared to last 
year. Hence the demand for 
removal of the export duty. 

Production in West Bengal and 
Assam is expected to be cut by 
hailstorm damage. But the 
- United Planters Association of 
South India has announced that 
the crop in the South will be 
ahout the same as last year at 
□early 39m kilos. 

The Association adds that 
Information from Sri Lanka and 
Kenya is that production during 
January and March has led to a 
■hlchpr crop of 2m kilos. Output 
in Malawi and Uganda is 
estimated to be marginally lower. 

wool prospects 

duction in the 1978-79 season 
(beginning July l) may be close 
to the 619m kilos estimated for 
• 1R77-7R. according to the Austra- 
lian Wool Corporation's weekly 
market report. 

Good widespread autumn 
rains, most recently in Western 
Australia, have coincided with 
firld reports that early lambing 
. has been unusually good. 

Corporation chairman Mr. 

A If Maiden forecast in January 
that the 1976-79 dip could fall 
to 560m to 590m kilos, based on 
the likelihood that the end- 
Mnrch T97S lamb population 
would fall to between 130m and 
13im from 135.4m at end-March 

In Wellington, meanwhile. 
New Zealand Wool Board manag- 
ing direrinr. Mr. Hitch Peirse. 
announced a new move which will 
give farmers year-round spilin'-' 
at pricr< based nn the auction. 

Mr. Peirse said the Board 
would buy all categories of wool 
direct from farmers in the period 
from Julv 1 until after the firsl 
sale of the new season on Augus< 



SILVER PRICES rose sharply 
yesterday. sicaling~the limelight 
from copper, which was subdued 
by profit-taking after its recent 

On the London bullion market 
the spot quotation for silver was 
raised by.7.45p to 2952p a troy 
ounce at the morning fixing. On 
the London Metal Exchange 
prices reached record highs with 
the three months quotation 
breaking through the £3-an-ounce 
mark for the first time. 

The LME cash price eventually 
closed' S.85 d up at'2P6.55p and 
three months was 9.3p higher at 

The sudden rise in silver 
values was attributed to what 
was described by traders as a 
favourable chart pattern, a 
weakening in the value of the 
dollar and the stronger tone in 
the gold market. 

It is claimed that silver prices 
have not kept in line with the 
substantial increases in gold and 
platinum values during the past 
12 months. At the end of May 
last year, gold was SJ 43.125 an 
ounce, against its present price 
nf $182.75 and a peak of over 

Free market platinum has 
moved up from under £90 to 
£137.5 during the past year, while 
spot silver has risen by only 30p 
during the same period. 

With trading activity centred 
in silver, the base metal markets 


Ponce per Troy Once 


Jan Fob My Ajv May 

were more subdued after last 
week’s excitement Copper, 
which moved up sharply on 
Friday, slowed down on profit- 
taking sales and reports that a 
resumption of some production 
at the Kolwezj mines in Zaire 
might be achieved in weeks 
rather than months, as previously 

Another hefty fall in copper 
stocks cuttine total LME ware- 
house holdings by 7.075 to 
533.825 tonnes was in line with 
market forecasts and had already 
been discounted. 

Considerable confusion 

remains about the price situation 
in ihe U.R. Although three pro- 
ducers have raised their domestic 

prices, others have yet to follow 
and Kennecott has abandoned 
the producer price system to 
base its price on the New York 
copper market — Com ex spot 
quotation, plus a premium of 
2.5 cents a pound. 

A sizeable fall in tin stocks, 
down by 170 tonnes to a total of 
-.115 tonnes, was also in line 
wiUi market expectations and 
had little impact on the market. 

Tin prices rose in Malaysia 
over the holiday with buying 
demand sufficient to. absorb a 
larger offering. The StTaits Trad- 
ing Smelter in Penang reported 
that last year the quantity of 
tin concentrate received fell 
sharply, probably because of a 
rise in illegal exnorts estimated 
as high as 7.500 tonnes tin 

The company claimed that 
Chinese exports of tin had been 
more Gsn offret by Soviet Union 

Cominco of Canada announced 
yesterday that it was raising its 
official European zinc producer 
price by $50 to $600 a tonne. 
This is S25 more than Noranda. 
hut in line with Increases an- 
nounced earlier by Australian 

Zinc stocks held in LME ware- 
houses rose by 1.675 to 63.925 
ton no S l^ad stocks fell hy 1.275 
to 57.125 tonnes. LME silver 
holdings rose by 10.000 to 
17.S10.000 ounces. 

Canadian grain sales ‘crisis’ 


limenr are voicing concern at 
what they describe as “ a mount- 
ing crisis " in the Canadian grain 
industry Kith a lm ton backlog 
in shipping and vessels now wait- 
ing to load gram at East Coast. 
West Coast and SL Lawrence 
Seaway ports. 

Mr. Otto Lang, Transport 
Minister, who speaks for the 
Wheat Board, vigorously 
defended the Government’s 
record in grain sales and ship- 
ments to dale. He said he 
expected 800m bushels to be 
moved into export this year 
“ We have not been below 

Progress on wheat pact 

THE U.S.. Canada and the 
Common Market have settled 
(heir differences over the struc- 
ture nf the new International 
Wheal Agreement currently be- 
ing negotiated. Mr. Boh Berg- 
land. U.S. Agricultural Secretary, 
claimed here today. 

Reuter reported that agree- 
ment included the key question 
nf whether coarse grains were to 
he covered by the wheat pact, but 
cave nn further details. 

The manipulation nf stocks to 
control prices was another point 
at issue which appeared to have 
been resolved. 

He also claimed that- the USSR 


would sign the wheat agreement 
when it had been negotiated, and 
added that the Soviet Union was 
now expected to buy the full 
1 5m tonnes of U.S. grain author- 
ised for this year under the cur- 
rent U.S.-USSR grains supply 

Mr. Bergland • said Soviet 
officials did not mention the 
possibility of buying more than 
the 15m tonnes during his recent 
visit to Moscow. 

They could possibly buy a 
modest amount ahovp the quota, 
however, although the capacity 
of ports in both countries was 
pretty well booked, be said. . 

OTTAWA, May 30. 

60Om bushels of grain In the 
time I have been responsible for 
the Wheat Board during the past 
four years," Mr. Lang claimed. 
Mr John Diefenbaker. former 
Prime Minister and Conservative 
HTP from Prince Albert, Saskat- 
chewan led the attack on the 
Government’s handling of the 
transportation problem. 

Western Canadian grain 
organisations are expressing 
alarm that the delays in grain 
movements inside Canada could 
cost the country a large cut in 
sa'os of wheat to China. 

The seriousness of the. crisis 
in the transport of grain would 
reflect itself in lower quota 
levelsL a laraer-than-expected 
carry-over of Western Canadian 
grain, and demurrage charges 
that would be the highest on 
record, a Conservative spokes- 
man from Manitoba warned. 

He called on the Government 
to act immediately to provide 
money for 4.000 additional grain 
hopper railway ears which the 
Wheat Board had asked for. He 
also urged the railways to be 
prodded into carrying out a box- 
car repair programme. 

Upsurge in 



By Richard Maoncy 
coffee prices continued yester- 
day Kith the July position on 
tbe London tatnnes market 
climbing to £1,738 a tonne 
before closing £18 up on tbe 
day at £1,709 a tonne. Jnly 
coffee has risen by £160 a 
tonne since the beginning of 
last week. 

Dealers said yesterday's rise 
was based on trade covering 
against the tight, supply 
situation in the May position, 
which expires, today. The 
resulting rise was magnified by 
speculative buying. 

- A continuing background 
factor in the coffee market is 
the delicate weather situation 
In Brazil. Several cold waves 
moved north towards Brazil's 
coffee region over the weekend 
but all veered away before 
doing any damage. Coffee 
traders have nevertheless 
grown Increasingly nervous 
because a frost at this time of 
year, following a prolonged dry 
spell,, could seriously harm 
the country's crop. 

The market has been living 
under the shadow of a possible 
Brazilian frost for more than a 
week now and this has 
discouraged any potential 
selling. The rise in market 
values has resulted from this 
lack of selling rather than 
from any rash to buy coffee. 

Meat prices 
‘stable soon’ 

By Christopher Parke* 

THE RECENT rapid increase in 
the retail price* of meat is about 
to level off and costs will remain 
stable until November. Mr, Colin 
CuDimore. managing director of 
the Dewhurst butchers' chain; 
claimed yesterday. 

It was “ unfortunate " that tbe 
price increases of 15 months bad 
been concertinaed into the past 
three monfhs, h? said. Recent 
Press reports about supplies and 
prices were “ irresponsible." 

Figures from the meat indus- 
try’s monitoring services' at the 
Meat and Livestock Commission 
show that, since the turn, of the 
year, the average retail price of 
best beef cuts in Britain has 
gone up 14’ per cent. Lower 
quality beef is abouull per cent 

Home-produced lamb is 23 -per 
cent up. 


THE.World Bank has lent S20m. 
to the Ivory Coast to help finance 
a rubber project designed to 
complete a 13,000-hectare rubber 
plantation started under a 
previous plan. 

Reuter --•* 


Wheat growing 
hit by failures 


BRAZILIANS ARE learning the 
hard way that it is not easy to 
cultivate wheat in a semi-tropi- 
cal climate. 

In 1974. when it finally 
appeared that the problem was 
being solved after years of dis- 
appointing harvests, the country's 
confident new Agriculture Minis- 
ter, Aioyssoo Paulinelli, an- 
nounced that Brazil would pro- 
duce all the wheat it needed 
within three years at most.” 
Since then, the crop has faced 
serious setbacks. 

This .month, confronted with 
tbe prospect of an even worse 
harvest this year, the same Minis- 
ter, now neanng the end of bis 
term-of-office despondently 

admitted that the goal of self- 
sufficiently would not be reached 
for at least 10 or 15 years." 
All types of climatic problems 
affect the crop. As a result, 
despite the beaw use of fertili- 
sers, yields have been low, at 
ahout 700 kgs per hectare, com- 
pared to 4-4,500 kgs in the United 
Kingdom. This year's drought 
is proving particularly ferocious. 

Farmers in southern Brazil 
carry out the lucrative “dobra- 
dinho" (little double), growing 
soyabeans in the summer and 
wheal in the winter. 

With tbe soyabean harvest now 
over, the farmers have prepared 
their 3m: hectares for wheat and 
are waitine to sow. Farmers say 
that, already, at least a fifth of 
the crqp.has been lost because. of 
delays caused by' the drought 
This is fhe second year of very 
serious difficulties. Last year's 
harvest was damaged by an initial 
drought followed by excessive 
heat and abnormally heavy rains. 

In the end. the crop in R'o 
Grande do Sul. usually the lead- 
ing wheat-producing state, was 
only. 690.000 tonnes, instead of 
fhe expected 1.8m. As a result, 
wheal imports this year will be 
tbeir highest ever, at 4.2m. tonnes 
or. more, costing at least. $550m. 
They are likely to be even 
heavier next year. 

To encourage wheat cultiva- 
tion. the government provides the 
fanners with a very generous 
subsidy. Last year, the govern- 
ment bought up wheat from rbe 
farmers at £106 per tonne, before 
reselling it to the flour mills at 
just £40' per tonne. This system 
cost the Treasury £145m. last 

With average world wheat 
prices at about £65 per tonne, it 
would have been much cheaper 
to have imported ail the country's 
wheat needs. 

Moreover, this system has had 
unfortunate and unplanned con- 
sequences. With the heavy sub- 
sidy, flour-based products are 
sold on -the domestic market at 
relatively cheap prices. As local 
farmers, producing basic food- 
stuffs. receive very little govern- 

explaining that wheat meal, as 
well as providing excellent 
fodder. Is sold at much less than 
half the price of domestically- 
produced maize. 

Traders say it has been clear 
for several years that the subsidy 
system has got out of control and 
that, in the end. the Brazilian 
Government is indirectly subsi- 
dising the American farmer. 

Because of the evident distor- 
tions. it was decided at the end 
of 1976 to phase nut the subsidy 
in three steps. However, as no 
concomitant measures were taken 
to encourage the local produc- 
tion of cheap substitutes for 
wheat, the plan was quickly 
abandoned because of its infla- 
tionary impact 

Much more recently, a study 
hy the Banco do Brasil suggested 
that wheat consumption could be 

Previous Year's 








(in tonnes) 

(in tonnes) 

(in USSs) 

(in tonnes) 
































Source*: CTRIN I Wheat Marketlnf Bear d) and Banco Central. 

mem assistance, crop levels have 
sfagnatedTn recenf years." despite 
the population" increase, and 
retail prices have risen. . 

As a result, consumers have 
switched from nationally- 
produced rice and beans to 
spaghetti and bread, made from 
partly- imported wheat. 

.While per capita consumption 
of beans fell from 28 kgs per 
annum in 1965 to 21 kgs in 1977, 
per capita consumption of wheat 
rose from 28 kgs to 46 kgs during 
tbe same period 

Consumption of . wheat meal, 
for animal- fodder, has also 
increased rapidly. Tradersagaiin 
point in the price' differential. 

greatly reduced through the sub- 
stitution" of other products, such 
as maize and cassava. 

This scheme, however, would 
entail considerable changes in 
overall farm policy if the 
increased production nf alterna- 
tive crops wore to he guaranteed. 
Similar schemes have "been pro- 
posed in the past hut have come 
to nothing. 

The increasing pressure of 
wheat imports on the balance nf 
payments may eventually force 
the government to push through 
the required changes, but in the 
short term the grain-carriers will 
continue tn travel to Brazil's 
ports. * * 

Consumers accused on cocoa price fall 


are deliberately manipulating 
the world market to force prices 
down, producers meeting in 
Yamoussoukro, Ivory Coast, were 
told yesterday. 

Calling for a revision of the 
1975 International Cocoa Agree- 
ment to^ revoke "negative aspects 
♦Tor producing "countries,^' Mr. 

Denis Era Kanon, Ivory Coast 
Agriculture Minister, accused 
consumer countries of "hidden 
or .unavowed actions through dis- 
closures of unfounded informa- 
tion to which the market has re- 
acted in an unfavourable man- 

A nine-member special commit- 
tee of the"Coeoa'Producers’ Alli- 

ance is carrying out a review of 
the agreement to seek ways of 
overcoming clauses which pro- 
ducers felt have a negative effect 
on prices. 

The Alliance is known to want 
a substantial increase in the 
floor and ceiling range prices of 
the current cocoa agreement due 
to expire in October this year- 





a.m. ■+• nr p.m. " ;»+.«r 

OIHi-mI : — , ronffiriiill — 

COPPER — Fractionally easier nn 
balanrr nn the l-ondon Metal Exrhange 
lOi-r r*wis in r:ss 3 on the ptv market 

High Grade C 
riS. 6550 60 

• £ : c . £ 

«'.r r-M-u- 1.1 raws on :h.- pn- market I"'"-,,- EJSJgX .tJ2 K official do«. : SM per plcuL 
rrit.-rt.nt i hr weekend price nsea by throe i ,2 oezo-5 -ZZ.6 

PS priHjin ,r« an>1 a further (all in wan.- 'J* 1 ™' 1 6560 ,-rlO, — 
hum- Miw Vs inriJM rnrtal Ton in a tlav* otanaard __ ; _ ‘ 

low of fTV’r at, me io priMit-iakntR and * ■**•- v“- + !:? -3 ?A B 

H--drr nt-'iinE Thu irt-n.1 was rrvrmri * JO 

on Hu- till- lf.-rh how.n-r with the pner* •'eUJerat. ,*10 

edging up in tdMr at ma.5. Turnover K ;- — 

Ij.rou Mini.-.' 

Morning: Three months 029. 29.3. 29. reported. The main fesrare of Ihe after- VTGTTTA HT 17 HIT C Imported frozen: NZ PL 52.0 to 52.0. 
29.3. Kerb: Three mom bo £293 ?» noon session was a complete lack of ’CtJElfVDLE UlLo NZ PM 58 0. to &.D.. . . 

Afternoon. Three months £329.5. Kerb- buyers and. with some conntTT moremem _ _ . „ Park: English, under 1M IP 38.0 to 

Three months ECT 5. 29 apparent, values lorn around steadily la „ U*NDOH PALM OIL— Ckwtnx: June. ««.0. MM?* lb 37.0 to 44.0. 120-160 lb 

Onu per pound t On previous Chin conditions. Wheat closed between Jnlr. August all . 300 00-310 PS. Sept. 2M.00- 36 0 to 42.0. 

S-3 lower while barter doted berween MEAT COMMISSION-Averagc ratstocit 

unchanaed -to fire lower. . 5 __*_ ?**•_ 290 0MM-M. Jan. and Feb. aI representative markets on May 


- Prices 

-per tonne unless otherwise 

MlO-5 —10 



BmnMed. Sales: Nil. 



ii , i , i , i:ii 

a m. 

+ .ir 

p.m. t-f»ir 
I'tu'iUrwl — 

Now York 
Morolns: Standard, rhiro months £6 470. 
50. 45 40. 35 IffRh Grade, cash I6..350, 
6A Kerb- Standard, tasb £6.540: \htrv 

Stiver was llxed T4Sp an ounce hlcbrr 
for spoc delivery in the London bullion 

mnrkei yesterday, at 295 2 US rent 

equivalents of tbe fixing level* were: spot 
SW c. DP HJc: Ihree-month 54S.7c. up -«<T4. 
15 2c: nx-mnnth 556.3c up 10 2c: and Vt. 
12-mqaih 576.5c. up I4.«c. The metal Jan. 

■Ye«ter<i*.v>. -f nr TeaterdayV -f- nr 
M'nlh’ i-ln*e — cli*e 


30" GB— Cattle 7LMp per kg.Lw. (-0.38i, 
UK— Sheeo I58.5p per 
l -S 9i. GB— Pigs 99. 4p per kg.I.w. 
t— 2.9'. England and Wale*— Cattle num- 
bers up 15.5 per cent, average . price 

86.75 -0.25 60.80 


The marker opened easier, Tbe after- ni S ? p , t -0.15*. Sheep up 26.1. average A Fw'nMriterTriiiil 
aw values firm In anticipation of 1 “ 3 i T 1 ■ . ^*5* ® * 

noon saw ... „ 

89 05 — 0J5 83 40 '—0 05 * ««<1r CUcsso opening on rumours of i" 3 D '- 21"“ j m-imho .In dn 

9165 ^0 05 86 06 Lqqs S®™ purchases ro close on tbe *wrage n-2#<-0.91i. Sheep down nr, ‘ 

Swan In'-flB mas 1 **** ^ Lbe day. SNW Commodities Hi' 

Scotland— Cattle numbers down Copper coab W. Band 

■ months £0.439. Afternoon: Standard, cadi Opened at 3W.5-29l.5p *327i-529ci and 94.30 _ —0JI5 _ 88.45 

772.5 3 - ‘2 
7B3-.6 +3.6 
773 - 2 

765. B 6 *2.25. 
755.5-6 ^ 5.5 
766 efl 

M.310. it: three months £6.430. a. 20. 
15. to. Kertv Standard, three months 

767.5 B.5 -2.75 ««■». I««0. 

788.5 9. 5 -.76 LEAD— Lower. Prices moved tn line 

with the trend In copper, with forward 

metal mine to E31S in the morning rings 
before i-asmg a shade to close at £314.5 on 
75 the late kerb. Turnover SJO* lonaes. 

dosed at 297.2-29B5 i3Wj-342ci. 


| BnllKm 

+ ,w; L.M.K. J 

+ or 


, — [ clree 


in>v ••*. 

1 pricing 

' 1 1 


i • 1 

+7.45296.55p +fl.W 


, 303. 6p 

+7.8fi 303 .66 p +9.5 

Pmi inihi,. 


+8.0 < - 

12 ment ha. 


+7.15 — 

-!* ■- reported. 

Business done— Wheat: Sepu 87.fiO-S6.88, 

Nov. S9.60-S9.00. Jan. 90.00-91.60. March 
W.6S-94.20. Sales: 149. Barley: ScpL 
— NOV. 83.95-et.40. Jan. S6 60- 

86.10. March 89.75. Sales: 154. 

31.0. average 64.1 (-0.5). 

Yarttrrfaj +«r i 


Cl nan — .| 



lfiBWlil ' 

Augual ........ 

152-M-52J — 0.40 W-BM1.7B 


153.HL4I.I -0.28 53.40-31.00 

i month* «1,r. do. 

Gold Troy ov 

Lead (.’aid) :....! 

5 month*.... J 

Nickel ...._ 

Free Market (df il»J$1.95 

prices at representative markets on Man- 
day-Saturday week ending May 27: GB 
cattle 71.57p per kg.I.w. I -+0.971: UK 
sheep I6L5p per kg.est.d.c.w. i- 2.0i; 

GB puts 82. 7 p twr kg.I.w. t-O.Si. England 
and Wales— Carrie numbers down 10.2 per 
cent, average price 7l.87p t+l.OSi; Sheep platinum troy 
np 3.3 per cent, average pnee 164. 8p Mamet. 

i-3.Ii; Pigs down 6JJ per cent, average Ooiduiivar i76ih" 
price C.Sp t-Ui. Scotland — Canlr up 
6.0 per cent, average price 70.89p i+0.S2i: 

May JO 



Men Hi 



Is 182.S7S] 



W. M. 92. 91.5, Morning: Three months £3IS. !4. IS.S. 

'.3. 2.6, 2-7. 2.8. 303. 
months 302.0 . 29 : 
Three months 351.7. L8. 
5. 303. 3.2. 3.4. Kerbs: Three months 

rnn 111 Ir, Irtl’S. 91 . _ . „ 

or M ' *10 K*t. Afternoon - Wiretiars. 14. Kerb- Three months £114. 15. After- 304. 4.2. 4.8. 4.7. 4.8. 305. 304.8, L7. 4.5. 4.8. f ha!We _ 10i 
:hrrr moerkr fTWi Vi. V. S9. sv ss. nnoil. Three months £314. Kcrti: Three 4.5. 

■•r. '•*•. «. fi. K7 1. w s». Cathfnlm- nrnntha MU, 14 J. 

ZINC — SfloMfy firmer. Forward meral 
aitrarted anme frvsh boytng hut values 
reniainrd %l-ariv throiiglmiH ihe day « 

proflMaktnE was met by modest short GIB* ‘and 'ouffus " reponrt. 
covering. Turnover 2.550 tonnes. 

■f nr p.m. ,1-f-or 

N Eaa 93.70. L ; K 100.10. change +ijb. 
Ti' tonnase l-W Feed barley: S. East 82 50. 
S West S3 SO. Eastern 82 60. E. Midlands 
<2.30. W. Midlands 82.08. N. Bast 9128. 
N West Si.W. Scotland M.40. UK 81M. 


Tjrre m»TKh* i779. Kerb: H’lrrlOA, 
three mntnhS f7'4. «.i SO. 69.5, 90. 
CaltKhlrs. Three mnnths irSO. 


Prices drifted lower In quiet conditions. 


71M' Fiffifial ’ — ' I’piilllrial . — 

TIN— Easier. Fonranl metiil rose to 
IR.4W nn ihr pre-niarkrt tviledtiui a r»e 
in the iviians iwice over Ihe weekend 

rouplcd vxb ITV- Initial HmiK-s* in ~ p ~ £ i 

e>ii>rt'r Tlw-rrafitT values tnrnnf rusli r ... •*,■««« : mm 

w.ih rnrward nuu-nal falling in I6.4W on '.** • ■— |*®-5 

thr mi,. Krrti following tr.ifle hedge W-Ulus ■•mnnih*.. 3^9.5-SO +.5 329.5-50 ' + .5 
•nd trw ahvemv uf anr physical demand. „ m ™;- ■ aza 
Turnover nn tiumes. rrm.nen -- 


Teaientny Y + or j Businma 


— i i>one 


l.ti. In ilex Limited IH-3SI 3466. Three month Silver 303.5-305J 
29 L-imnnt Road, London, SW16 0HK. 

1. Tax-free trading on commodity futures. 

2. The commodity futures market for the smaller Investor. 

1 Rux'al Exchange aw . London EC3V 3LU. Tel.: 01-283 1101. 
Index (Snide as at 23rd May, 1978 (Base 100 at 14.1.77) 

Clive Fixed Interest Capital 127.67 

Clive Fixed Interest Incume 113.51 

CORAL INDEX: Close 470-475 



• a . 1,1 re . -a ahnun under Insurance and Property Pond Table. )j 


ACMIW GALLERY. A3. Old Bowl S* . 
Wv ftl ur® Al?« MASTER PAINT- 
ini .1 ur.m .'I JhI» Mart -Pit. 9 3 D- 
5 JiJ 7 n u n. until 7. 


Bull* OHWirv U 1 !" 

on H. iM 3 ®- 

?7. Walton snrrt. 5 W ? W?.#**!: 

IMAlK MO" -7rl 10 00-5 30. Sal 

•non- 13 JO. 

COLNAGHI, ' la. OM d«0 HrM. W-t • 
BM , « '}« AND FRCMCH 
*"« jam Crnrirrv and L. S. LOWRY 

9.30-b IKS. 10 4. let. 0T-4S1 7«OB 

Sr., w.f . Moorrn paintlnpB- VCiHUturuB 
amt araDftln O' -ntcrntmo ««i ivj-n-tlwl 

10 00-5 OO. «■» IO °°- 1 



»o« at MMmnM V*.! !j'? s , 55 

Mon .Fn. C U»tgd Samr aav *. 0T ~* 57 6455 

sr*ss\. HBTWSS 

Dancing yartnor*- 



Sent free tn Tradin B Clients, this Report 

••nf free in rranini; Clients, i m* - wce iri v 

n»-WN. fnrrc.istP future price movements, and the 

epTf*n recommendations. Aided hy Markets is 

1«*»- situation in each nf tbe major London^ Market^ 

;.Sn analysed. If you would like free copies 

I -‘ties 

. . iii * the " Report, plea* fin S 01-480 6841. or write to: 

CCS.T. OMimodities|.td 

Walsingbsm House, 35 Seething Lane. London EC3N 


Slav 19 DO. 0-14.0 '—25.6 1840.0-1806 

Jo tv 1756.0-58.0 -24.61765.0-1725 

Svm 1687.0-88.0 —29.01704.8 1880 

Ito- 1655.0 61.0 -22J-W7M-1655 

Marvh 1840 J 45.0 -17J IS 49- 0 1 63 2 

Mav- 1616.O-25.0 

July I6O5.0-IOJ 

Sites- 3.240 74.3931 IMS of 3 tonnes. 
Inurnatlvnaf Cnm OrgaolMtioa IVS. 

S. West 95.20. Eastern 95.5*. E. Midlands Frhm«iy 128.5030.* -0.86 

96 70. W. Midlands 85.28. N. East 97.10. April i 126.50-61 A— 0.66 - K ,,« wl-ptlBP- 

N Wrst 96 30. ScmJand 9SJ0 UK 9630. June 128.5032.6 —0.60 — 6.0 per cent, average price 70.»p « +0.82>: ‘ TfT Vh? ' — 

Sales: 107 nsfli lots of 106 "tonnes. Shvep down 23.5 per cent, averase pnee T , n c Ju 

154 Xp i+0.0»: Pigs up 9.8 per cent. r “„ n TL. “ — "~-i 
average price 65.0P i-0.1V vShEsSSSi 

COVENT GARDEN i Prices in Berlin* Zuh-ooh 

per package except where stated i: i raimthv._ 

Imported Produce: Oranpes— Cyprus: l'rv»1ijcee^..._ 

inmM» 11 rvK LOUDON DAILY PRICE «raw sugar Valencia Lates 20 kUos 3.40-4.00. 15 kilos 

AB-iev v s,. «« 3*3.00 iD»f.|»< a lonnt- df for May June 3. 304.00: Jaffa: VaJcnda Lates S.BS-4.40: 

*hlpmem. White sugar dally price was Egyptian: Valencia Lates 2.60-2.20: Loren it (Phiq^, 

fnmiac, rt ^ti,, ttxed at 2110JU tflOO.OO*. Moroccan: 1M-3M: Cabforolan: 3.6tf-4.0*; <>ronn.1mit... 

mSurne h* T ^a«^mi h n?.. ,> ^rt«r^h Koen baying was apparent at S. African: Navels 3 J8-4.00. Ortanlqncs— Lru,ie{v). 

mailing ba..ey was 190.80 at Arbroath and opening and sellers vri'hdrew scale- Jamaican: 5.50-6^6. Lemoav-luilJan: Malayan.^.. 

hcca i _^.| _ ar . “P- ' Gatos of op to 125 no iota above too/itts new crop A.50-5.00; SpanU: Small 

fBrSar» Su£ m «*■****••* *nS* were wlckly recorded, irays 25/50s 1.50-1.80: S ATrican: 88^95 

cL* ™ whWt— a0e - lW - However, there was a lack of follow- 5.80-530 C raptfr uU-Cyorus: 15 • kilos Seeds 

tik. .k. tbroURb on the upside and later most of 2.004.00: 20 kilos 3.20-198: S. African: L-f-pm Philip. 

UK ?° nela - l 7 . , M ro ^ “to the sains were lost fo flowing dbapootni- 3E/5C 2.99-3.60: Jaffa: 20 kilos 3.0D-3.BS. ao.vatwui (U^.) — | 

” ing New York advices, C. Czarnlkow Apples— French: Golden Delicious 2*- lb 




+ 3 . 55 ) 
i 127-321 


502. 5p 

E 6.-611 

26 . 412 .bl 

5151 - 36 ). 

£ 319.5 



— 2.7612691-5 
1.0 L681.5 
I— 2.7B'».B99.5 
+3.0 15169.125 


+ 7.45 
+ 7.05 
I — K.5 







> 127-52 

872 . 86)1 



U.S. Markets 

Metals up 
on price 
index rise 

— 10 . 0 i£ 6 , 137.6 

i| i-lS742 


5667 -By 


|i' 38 B 

8625 A 

vt+ek bectoiung Monday. May 25 
expected io remain unchanged. 

IMPORTED— Wheat: CWR3 No. 1 13} 
per cent Mar £97.50 Tilbury. U.S. Dark 


—26.5 1650.0-1816 
-23.0; 1615.0 1605 

tnon* East Coast. 

Maire; DS.-Tmicb June-July 110535 
transhipment East Coast: Sooth African 
White Junes! njy £81.30 Glasgow: South 

Sugar 1 

Pref. iTearorday’a 

Pnerioua 1 


Cnmm.j Close I 

' Close 


Conn. J j 


Ms 3.36. <2s 330-3.90. large boxes 6. 30-7 JO: 

Tasmanian: Jonaibans 5.00. Granny SmlOt M. r i. r ni#r: 
8.00, Golden Delicious 6.50-7.00; Italian: h 

Rome Beauty, per pound 6.17, Golden ^uut re*-— 

Pr nub No. 5 An 

Delicloua *. 14 - 0 . 16 ; S. African: Granny 

£ per tonne 

Smith 8.00-8.20, White VVlmer Pearmaln 
6A0-7JB. SlarkJrtB Delicious 7.8M.W: 

rhlUart. revmrn Cmilh C £fl .7 . Now ' * 


136. M tlTT.83 
L&day average 

NuZ Uani Wlnt«tl 



+OJ 1 £306. 26 






Chilean: Granny Smith 6.GO-7JO: • New 

ltriran T-.iin im.. r.i, n, u Ai«t 11H.65A8jd106.1Q4IE.20 107^6-06.25 Zealand: Stunner Pippins 163 7.70. 175 m.iu, "i,,,!, 

^et- — :1Ba.sS-M. M 10B.7S-08.6E 110.40-08.26 7.60: Danish: Per pound. Spartans 1.13- . l^d ltohNMUu ^lJlqa 

■niernaiivna* w-«« -o- »««• .JllW.ll. II 1I1.7W 1J0 Ill.lttUn 0.15. Pears-S. African: Canons. Fhiek- L -l fi ?* 7BB 

cents m-r pound i— Daily pnee May 26: H fdnn Man-h J12OJ5O.20.4OI19.7B-I2B.IHJ 151 J5-2SJS ham's Triumph 9.00-9 30. Beurre Bow 

•>-. Indies :or prices Mar 29: aanat ^ May --i 135 -»2J Jb 122.90- 23 4HJ 124.25 8.00-8.20. Winler Nells 8 00-8.28: Belgian: i‘?, Fre 

140.64 ( 141.61 >: —-day & ™ Aue 12I.BO.26.90 12E.70 -a jol — . Conference 0.13-0.13: Dutch: 0.15. Cranes— .. J ^ nl v 

avenue 143.66 U44.42). 


Robust as opened £28 to 130 higher as 
the market reacted to vague rumours 
about South American weather conditions. 

Tn «7 -tV nf . i7 V m 7 Z ,Mi.u Aur 128. SO. 26. 90 125.70 — . Conference 0,150.13: Dutch: a.15. Grapes— “vi-r— 

CM.....Il28.«46J5129^6-2»1Sl5n.0M9.Ba s - African: Almerta 8.88, Barilnka 7 M: *. 

In bracken. Common Wheat— $1.37. oil, 
nil. nil iWW. 0.68. OBL OMi. 

Daman Wheat— 125.89. nil. nO. 101 
<122 H. ml. nU 1 . 01 1 . 

Rye— 78.87, nil. nil. nB m£7. nD. nil. 

BariejH-nJB. nil. nil. nil (71:53. nil. 


, . Chilean: 5 MIPS. Almeria 6 0B-6.20. “uUnrr kilo. 

Sales. 1J45 (1,B95 j km of 50 tonnes. Aerlcot*— Spanish: 5 kilos 1.80-2 JO. lUaw) 

ex-roHnery prlw for Banaeas-Jamaican: Per pound 0.15. Wwilwpi 64a kilo... 

granulated basis -while sugar was 042.40 Avocados — Keoya : FCerie I4^4s 3410-1.00: 

tonne /or home trade and s . African: Fuene 3.90-4.00. Straw- ' • Nominal, 

borries— Californian: 0,90-1.00; 



... ! £363 

+ 1B.0S5B6 

+ 15.D3410 
.0 Is304 






U: 1.737 1— 24^1 £1.976 

£1.709 1+18.01 
70.95c !— 0.£ 
57.5p +0.6 
£103 +2.0 

BBOp I.. 

t Id 1.5 

£163.00 (£161.061 for export. 

— — — loiereationai So»ar Agreement: Prices 0 28-0 30; Spanish: 0.30-0.35. Oa1_~ — 

B'Sfs^'sSWS S Sd Iper lTO - 

proflt-takingeroawi values ^ x niI ml , MM> ri i. niL alii. 'H^ORT LEVIGS— Effective to-day in 01 o p otatoe s— Egyptian: 4 JIM .80: Cyprus: 

cl^e f^Vbe most Crain Sorptann-^.M. ini. nil. nil ( 80 ..TS ^ 5.00: Jersey: M MS; ValendaTMol 

^ o^the ^ as traderastmghr aJ - n* 1 - nl1 ’ Fleur levies-^ wheat or ‘‘“■"[f d “* 4^0: Majorcan: 5^£5.0O. Tometoee- 

toihe wiK3t and ne flow* 125-99 I7 SBH.. Waw «qar pact,- 3.4M.60: Cuerneey: 3.8M.80: 

TtftHan- . — j t Unquoted.. oMay-June. 

TtaHan: J May-August, k August, u June. hAprll- 

June. iu July, y May -July, t June July. 


an Dei pale an overdue react Urn to the 
markers rises of the Iasi two jseeks. _ 

' ■' fiut7ih r‘» ’ ] 

Ulnae + nr Bn*ine«w 
— — - — 1 I+Tir 

1 1*4.341. Rye flour. 122.48 (122-481. 



denatured add Don-denatured 2LS1 rSLTSi. 3 m- French - 

The rate for raws m both cases la Tor ' n 380 " 

■agar basis 82 per cent. 


;£ per toone. 


STEADIER op enin g on the London 
physical market. Little Interest at higher 

— levels, dosing on an easier note. Lewis 

If av. — 1965- 1970 -r KO.O 1995^1310 am3 Pe it reported that ihe Malaysian LONDON— Tbe market was dull and 

July ' 1708-1710 + 1 B .0 1 738 17^5 mjrgct was 226 I 223 i cents a kg fbuyer. tcatnraleH. Same reports. 

Sr I >1 rill her..; 1602-1604 ...... .. Juncl - 

Xni wither... 1555-1558 ^»“ J 595 - 15 M 

J«u«rr 1 1525-1530 + 07 . 0 . 155 1-527 

Mvcli 1400-1610 1535-1506 

Uav I...' 1490-1499 +18.0, 1524-1496 

fPencd per kilo) 



Te*r'rrUy‘a Pterimii 
i-leae ■ . Ulnae 

[Yeerenl’yi 4 . or, 
Clnae | — 

May— p*9J 

July — .^30 J£ 86.0 

Ocioher Ja37J-U.0 

Deecmhcr ... 1259 . 0 - 41.0 

+ 0.51 

Safes: 3^94 16 . 802 * lots of 5 tonnes 

ICO Indicator price* for May 28 'L'-S- JuM > _ 54.75 59.00 57 . 76 - 59.40 69.00 

cents per pound: Colombian MiM Julr 69 . 75 - 50.00 68 . 10 ^ 8.20 69.06 ^ , u 

Arablcas 1 M.B 0 unwashed 58 - :D- 59. 80 59 . 00 - 59.10 60.25 69.07 ■ gS TL'j 

Arablcas 161.50 M 88 . 50 *: other . mlld BD.a 0 - 6 a .85 S 0 .K-EO .10 61.60 68.10 Marc h 1 ,^-gJ 

julV" - H 4 b! 8 - 48.0 ■ 

October — ^ 247 J- 58.0 | 

Arablcas 1S1.50 flM.50*: rtner. mim 6D.aO-BB.85 BO.C 

Arablcas 170.50 fl0P.Sa>: Robosras 140.00 81.85-61.80 80J 

tlWJBi. Dally average 15a.Ja 4l»J»». A .^j nP S2.0 

ARABICAS followed a Mmltorly Bnn 65J5-54.80 M-l 

pattern ip Rob usi^ hm ora- Dm 04.8964.95 64.1 5-94.20 66.SO-84.20 

a hedge basis prevented flw mwk« rrmn J Msr S8.M-66.fe 

cXPcrtcDcing any sharp adva-~" ""»«*■ --- 

Burnham Lambert reported. 



W6-8. 346.64413. 6: Dee. 350.5. 351.8, 

60-35-61.00 82JW-6T.De 
57. DO -62- QS 53-50-62.00 
65.15-63.20 04.60-06.46 

Sales: nil (XI low of U0C kg. 

“ — 7 — . Drexel UBB-aiur- n.aa-n,w W "'^ W T 1 rra* SYDNEY GREASY— Its order buyer 

experiencing any sharp advance, ureMJ . - seller, business, soles 1. MlcrorLCoswaa- 

urnham Lambert reported. Sales: S lots of five tonnes. 420 l«s jL+Tan.*, SKmu jpivtMLL 

Price tin order buyer, seller, ebangr. # 13 lonnes . jmy * as. Oc*. 346.0. 

buaincNi): jone 190.5O-2O9J6. +4J0. phydra] cIoBhw oners (burorsl were:. 

"0030-200.00: August 15-I.0C-1SS.5C. —0-25. SpoI /57 0>: July 58fep C56.0); 

187.00: net: 174JO-I|7.00. +0J5. 175W: August 57.25p 157.01. 

Dec- 170 . 90 - its. do. + 706 . untradrd: Feb. 


SjJpS: 16 IS> 

DUNDEE JDTE-Ouiefc Prices of DOW 
crop c and r LrtC ter Setx-Nov eblp-- 
ment: BWR £287. BWC 125*. BWD £345. 

Tossa: BTB £267. BTC £255. BTD £548. 


Cyprus: 1.50: French: 22-lb nets 
Names 2B-lb boxes IM. A span 

Californian: Per pound 050-1.00: 

Hungarian: 0,70-0.75. Broad Beaus — 
French: Per pound 0.J44L1S. Cherries— 
French: - Per pound O.BS: Cyprus: 0.60. 
Lettuce — Dutch: 24a 2.79-3.20. 

EnpUsh Produce: Potatoes — Per 56- tb, 
White.’ Red 1.00-2.30. Lettuce— Per 12 !.«■ 
130, Cos 2.00-2 JO. Beomoa-r Per 28-lb 
330. Carrots— Per baa 0.80-1.40. Parsnips 
—Per 38- lb I.W-1.W. Ou t— - Per 56-lb 
2.60-9 30. Rbabarb — Per pound, outdoor 
0.95. Cucumbers— Per tray 12/248 130- 
2.00. Mushroo ms Per pound 030-0.50.. 
Au p leu— Per pound Bra ruler "s 0.1D-0.18. 
TMoattet-Ptr 12-lb Ena! tab 3.30-3 59. 
Greens— Per crate. Kent 138-1.50. 
Caul Viewers— Per 12 Lincoln 1.80. Kent 
] 30-2.00. Celery— Per 12/ 18 3.00-3.80. 

Aspnrauus— Per bundle approx. 2-Ib L20- 
1.90. St r a w berries — -Per Hb 039-035. 


LIVERPOOL COTTON — Spot and Bhto- 
ment sales auomud to 168 tonnes. Small 

1MV ML165.0Q. +1.0B. untraded: April. 

[26.00. +0.50. uarraded: June 1*8.08- 

152.00. .+2.00. ontraded. 

Inis of 17.250 kilos. 

.5330 0 M; March mg ar- « rcil IBMI Hits timmiieH w «* names, annul 

&SnT& .as 

thTv im s w a An* aew) . A— iHipfpfl 3fnoflD dspn. Aclmiy ms itteltny 

SK Sf m 5 !s «13 RW«“- Tunosb and other {fiddle 

30.2. 384.0. 36634833. U. Totals sales: E«, enl nmrt hs. 


Mav 30 : May 28 ] 

Mouth AuO 


254.67 , 252 . 

03 | 233.05 | 
"jnly 1 . 1062 = 


= 100 ) 


Mat 30 j Mai SSj.Unnili j Yenr nu>> 

1S0B.4I1B02 .7 | 1 455.4 " | 164Z.fl^ 
(Base: September' 1R. 190=100 > 



I Do* 

; Jun+ 




Umil h 




3 59.4S 359.39 S59. 12422.30 

lAvenge 1814-25-28 = iJOOt 



Mai I Mai- IMnnib|Xrai 
30 | Bfi I a an a£u 

hp*> OimmLvlUnav .ifl53 .2l gOgjjgBj 
1 (becamber si, 1 871=180! 

lJTinp /VPfim I>T ICC GRIMSBY PISH— Supply firm, demaud 
JTULaV a / t CUT c i AdLej Dead. Price* at ship’s Side < nrt processed) 

Factory ‘call-up 5 



_ per stone: ShelT cod H.04-L4.50. codlings 

. _ SMnW'ELD fpeoce per pound!— Beef: C30-£3JO: Lame haddock 14.00- £436, rnmnaninc in Nnrthurontnn 

Calcutta Bonds firm. Quotations C and f Scotch killed aldea 64.0 ie 56 . 9 ; Eire medhun £338-r4 60 small £2 0 D-£ 33 D: UOmpaniBS in NOrWanipiOtl 

4 GATTA 3 — Thu DK tar prompt shtumew: 1A « 40 Inch wndouariers 71.0 ta at. farmtuanera Large plaice £330-54.70. medium 53.00. ar « advertising for factory 

£4.40, best fmiH £S.06-«.1I; swimed doa- workers from high imemploy- 
to fish, lire fiUH. .medium ffi.OOt Lemon jnent areas In qmtlanri and fhe' 

soles, laree B.60. medium £4.50: Hofkfisfi , SCOUami ana ine 

aetMoi ii.4vn.7D; Reds 5L20-5130: saline afe' ^ortn Last dp cause tney cannot 

Torf H amm higher drougin £3 91 71 n i?J« Her. UO .yard*. Jure 37.8 to 

— - - “ 

closed about steady between 3M» ahipmem . period. Tara at 

U£ber ifitb short ctrrerera pcoalV»at- Ach «■*- 

English small fa 

08.0 m 74*. yufl s b medium B&l to 71*. fljfl. 1 

find recruits locally. 

NEW YORK. Kay 30. ■ 
PRECIOUS METALS dosed sharply higher 
on aggressive Commission Bouse buying 
and short-covering following a weaker 
U~S. dollar and expectations of a sharp 
Increase in the consumer price Index for 
April. Copper rallied on trade arbitrage 
buying, Commission House sbon-covertog 
following ihe strength in Sterling- 
Cocoa — Jnly 133*5 U3Gfei. Sept. . 130.501 
(133.251. Dec. 126.65. March 123.80, May 
121 .SO, July 120.20. Sept. 118.78. Sales: 

Coffee — C " Contract: July 1BR 4* 
168.00 'IBK.50I. Sept. 162.25-162.50 (I62.7T1i; 
Dec 155.00-155.25. March 151.50-132.00, 
May 148.75-148.00. July 146.75, Sept. 143.00: 

144.00. Sales: 53fl. 

Cooper — June 65.30 (samel, July SS.flflT 
(same. Aug. 86.50. SCPL 67.10. Dec. R.7Q, 
Jan. 69.20, March 70-0. May 71JH). July 
72 JO. &.-P1. 73.20. Dec. 74.70, Jan. 7S.2D, 
March 76.20. Sales: 7.000 lota. ' 
Cotton— No. 2: July GOfe-60.70 (6D.S4)y 
On. 62.4342.4j (62JI5I. Dec. B3.9544.00g 
March 64.65. May 65^0-65.55. July 65.90- 

66.20. Oct. 6&15-61.40. Sales. 565.000 bales; 
■Gold— June 183.90 < 179.90 1. July 1*5.14 

(131.00). Aug. 136.60, Oct. 189.56, Dec. 
191.49. Feb. 193.40. April 199 A0. June 
201.40. Aug. 204.40, GcL 207.40. Dec. 210.40, 
Feb. 313 40. Sales: LL200. 

t Lard— Chicago loose not available^ 
New York prime steam 24.25 asked (24. 2a- 

TMatw— July 2701-270 Sepl. 2B9J- 

270 126041, Dec. 274-2744, March -2RU-260I,' 
May 2SS. July 2S6. 

SPIaitnmu — July 254.30 (244.30 1. Oct. 

233.88 bid .l245.Ht, Jan. 236.S0 bid. A pill- 
257 .80 bid. July 239.90 bid. Ocl. 262.00 
bid. Jan. *64.30 bid. Sales: 1.668. .' 

^Silver— Jime 540.70 (324.701. July 543.90. 
(528 *0). AUR. 547.60, SepL 55L20. DeCc 

562.00. Jan. S67.10, March 573.30, May. 
594.10. July 592 50. ScpL 601.70, Dec. 

615.20. Jan. 819.90. March 629.40. Salrsr 

37.000. Handy and Harman spot -bullion' 
3J9.50 <524.301. 

Soyabeans — July 7464-744 i735i, Aug. 

733-7244 Ci34». ScpL 799. Nov. 674 S- 677. 
Jan. 678-6791. March 68+686. May E66. 
July 695. 

Soyabean Oil— July 28.95-29.00 I2SI3I; 
Aue. 28J5-29J8 l27.5Ti. Sept. 27.50-27.60. 
Oct. 26.65-20.75. Dec- 25.55-25.90. Jan. 

5 53-25.30. March 23.25, May 24.90 bld- 
24.95. July 24.60. 

' If Soyabean Meal — July 1 85.00- 1SSJW 
(IM.GOi, Aug. 184.50 1 164.40 >, Sept. 194.00- 
183.30, Oct. 179.90-179.50. Dec. 176.30-177.50. 
Jan. 177.00-I7S.00. March 179 50-lrt^O.' 
May 170.00, July 179.00-178.00. 

Sugar— No. 11: July 7.48-7^0 (7.51-7.53), 
Sepl. 7.78 1 7.76-7.771. Ocl. 7-59-7.041. Jan. 
8.36-8.50. March 3.78. May SA3-8.S4. July 

9.00. ScpL 0.06. Oct. 9.20. Sales: 2.600. 
Tin— Not available 1 540.00-335.00 asked), 
“Wheal — July XI9-3394 '3321 ■, Srpt. 342- 

243{ 1 3361. Dec. 349, March 331-350. May 
350-349. July 3371. 

WINNIPEG. May 30. tffiye-May 100.00 
107.601. July 119-34 1 107.60 asked), OcL 

110.10 asked. Nov. 109.50 bid. Dec. 109.50 


ttOaM— B7JA 187.00 bWi. July 82.90 
(82.Ug2.S0i, Oct. 80.48 asked. Dec. TVM. 
March <9.00 nom. 

ttBaricy— May 80.40 (80.40 bid). Jnly 
S0.30-S0.50 <86-50 >, Oct. SOM. Dec. 80-40 
bid, March 60.58 asked. 

SSFIaxsnod — May 279 A0 asked <207.50 1 
bid 1. July 271.50 asked <260.50 bid), Oct. 
268 JO asked. Nov. 26620 asked. Dec. 

265.10 asked. 

IfiWheai— SCWRS 13.5 -per cent protein 
content of Sl Lawrence IWAO <166 7B1. 

All cents per pound ex-warehouse 
unless oihcrwtse stated. »$s ki- in>y 
ounces— 100 ' ounce tots, t Chicago loose 
as per ]00 lb*— Do pi. of As. prices pre- 
vious day. Prime steam fob. j+v bulk ■ 
tank can. S Cents per SO lb bushel «*- 
warehouse. 5.000 bushel lots, t &S per 
troy ounce for 50 ox unlu of MB nor 
e+nt purity delivered NY. 0 Genii per 
troy ounce ex- warehouse. 1) New -^B” 

comraci x Si 1 short ton tor bulk lota 
of 100 shun tons delivered i.o.h. cars. 
Chicago, Toledo. Sl Louis and Alton. 

*’ c «k p+r 89 lb bushel m store, 
tt Cents per 24 lb bushel « cents per - 
46 lb bushel ex-warehouse. |#gcob per 

16 M WI »»hduae; LOW busted, 
hits, tt SC per tonne. < 



■ f- - ' 


Financial Times Wednesday May 31 1978 ; 



Markets start the new Account on a subdued note 

Share index down 3.6 at 472 . 5 — Australians active 

Account Dealing Dates 

•First Declare- Last Account 
Dealings lions Dealings Day 
May IS May 25 May 26 Jutt. 7 
May 30 Jun. S Jun. 9 Jan. 20 
Jan- 12 Jan. 22 Jun. 23 Jaly 4 
* " New time " ftaHnn map W« P lat0 
Tran SJO un. two badness dan writer. 

Apart from another lively trade 
in the' Australian mining sector 
and an improvement in Hold 
shares Following renewed firmness 
in the bullion price, stock markets 
made a rather subdued start to 
the Account which got underway 

British Funds remained un- 
settled by monetary worries, 
scattered offerings of the shorts 
on an unwilling market being 
quickly reflected in prices which 
recorded fresh losses extending 
to | at the close. The longer 
maturities were inclined easier 
in sympathy and the Government 
Securities index gave up 0.1S more 
to a 197S low of 69.92. 

The Industrial leaders drifted 
lower on lack or any worthwhile 
demand, but the majority of 
losses in the Index constituents 
were limited id two or three 
pence. The bulk of the day's fall 
took place during the morning 
session, as reflected in the FT 
30-share index which recorded a 
loss of 3.5 at noon and barely 
stirred from that level to dose 
.1.6 off on the day at 472.5. The 
low level of interest was shown 
In official markings of 4.575 
compared with last week's dally 
average of 4,979. 

There was little in the way of 
company trading statements to 
enliven the day's proceedings, but 
Swan Hunter became a late weak 
feature at 132p. down 12, on the 
gloomy interim statement. Over- 
all, the market presented a 
picture of scattered irregular 
changes, but rises just had the 
edge over falls in FT-qimted 

with last Friday's 428 and the 
lowest since the 270 recorded on 
April 26. Most of the business 
was transuded in the morning 
session. CourtanWs emerged as 
the most active with 145 contracts 
traded, followed by Shell, 83, and 
Corn*. Goldfields, 34. 

Banks easier 

Quietly dull conditions prevailed 

Gilts uncertain 

With sentiment still unsettled 
bv the authorities lack of any 
moves to alleviate market fears 
about future monetary policy. 
British Funds continued on an 
uncertain nole. Short-dated 
issues encountered scattered sell- 
ing and. in the thin conditions 
prevailing, prices closed at the 
day's lowest with falls ranging to 
}. The short lap, Exchequer 
per cent “A.” 1982. ran back *„• 
more to 93 compared with fhc last 
operative price of 931. Longs also 
traded extremely quietly, and 
drifted a little easier in sympathy 
with The early maturities to finish 
with widespread losses of I. 

The investment currency mar- 
ket was fairly quiet throughout 
the day and from an opening level 
of around 1091 per cent, the pre- 
mium drifted lower to close 2t 
down at 106 per cent. Yesterday's 
conversion factor was 0.6S47 

Yesterday was one of the quiet- 
est days yet in London Traded 
Options which started dealings on 
Friday. April 21. The number of 
contracts done was 349. compared 

in the major clearing banks as 
prices drifted lower on lack of 
support. Barclays aod Midland 
both ended 5 off at 330p and 360p 

respectively, vrtiHe Press comment 
reviving old fears of an imminent 
rights issue from NatWest had 
little impact on the shares which 
closed only 2 lower at 268p. 
Elsewhere, Allied Irish improved 
3 to 186p. Among Merchant 
Banks, week-end Press comment 
prompted an improvement of If 
to 49p xd in Keyser Ullmann, 
while Leopold Joseph were 
marked up 15 to 190p and Antony 
Gibbs edged forward 2 to 47p. 
Hill Samuel closed unaltered at 
SSp despite news that the 
Supreme Court in Karlsruhe had 
ruled that the Bundesbank will 
not have to pay damages to Hill 
Samuel over the closure nearly 
four years ago of Bankhaus 

A dull market towards the end 
of last week following the sur- 
prise £26m fund-raising call from 
Alexander Howden, insurance 
brokers continued to drift lower 
In thin trading. In ex-rights form, 
A.H. closed a penny off at loop, 
while the new nil-paid shares 
aliened and dosed at 9p premium. 
Matthews Wrightewn shed 6 to 
IfiSp xd and C E. Death gave up 
5i to 263p xd. 

Breweries drifted gently lower 
on lack oF interest, but Bodding- 
fons held steady at IORp ex the 
scrip issue. Against the trend. 
Young Brewer? A edged forward 
3 to a 1978 peak of 175p on small 
buj-ing in anticipation of Thurs- 
day’s preliminary figures. 

BuiJdmg issues closed a shade 
easier on lack of interest in a 
small trade. Occasional interest 
developed for secondary issues in 
which trading statements are due. 
Nonvest Holst closed a penny 
cheaper at SHp, after 96 p, ahead 
of the results due today, while 
J. Smart firmed a penny to 5*p 
in front or tomorrow’s interim 
figures. The return to profit and 
dividends prompted a rise of 41 
to 18tp in Lcadwrflush. wtwle 
Cakebrdad Robey “A” added 21 
to 27>pxd in belated response to 
the annual results. Heywood 
Williams relumed to favour after 
recent profit-inking and rose 4 
to 104p. Pochins firmed 3 to 143p 
in a thin market, while a Press 
mention loft J. B, Holdings frac- 
tionally higher at 08*-p. 

comment on ' the offer from 

Stores took a turn for the better 
with Home Charm prominent at 
166p, up 8, on renewed support 
S. Casket rase 3 to 43p. A. G. 
Stanley were quoted ex the scrip 
issue at 112p. 

Press comment directed atten- 
tion to H. Wig/aU which rose 8-td 
201 p. Philips’ Lamp reflected 
overseas advices with a gain of 
27 to 935p. while* Ever Ready 
moved up 3 to 14t?p xd and Cornet 
Radiovision 4 to 125p. Pressac 
were also firm at 88p, up 34, ex 
the scrip Issue. 

fiJKN gave up 3 more at snip, 
still unsettled by recent sugges- 

notable for a gain of B to 122p, 
after i24p, following buying io 
front of today's £%nuai results, 
while improvements of 3 and 2 
respectively were seen in Pilking- 
fan, 478p. and Unilever, 514p. 
Beecham, however, softened 3 to 
655p and Boots relinquished 2 to 
18Sp xd. Elsewhere,. Elson and 
Robbins rose G to 93p on specula- 
tive demand and Sntheby Parke 
attracted renewed investment 
.support and gained 8 to 298p. 
J. F. Nash Securities, at 122 p, 
recorded a Press-inspired 
improvement of 2 and 7. and J. 
Hyman were a like amount dearer 
at 38p for a similar reason. Crest 
Nicholson added 4 at 87p. after 

Home Charm wanted 

In dull Chemicals, lack of sup- 
port left Id, 387p. and Ffsons. 
336p. 3 and 4 easier respectively. 
Albright and Wilson edged for- 
ward slightly to 164p alter Press 

tions that the group is likely to 
Fail in its bid to secure the 
contract to build a £L9fhn car fac- 
tory in East Germany. Among the 
other Engineering leaders, Tubes 
gave up 4 to 374p and John Brown 
softened 2 to 370p. Hawker held 
at 216p following the annual re- 
port and accounts. Elsewhere. 
Cornercroft stood out with a jump 
of 9 to SSp following the 6Jp per 
share cadi offer from Armstrong 
Equipment Defeon moved up 3 to 
2Sp in response to Press comment, 
while similar improvements were 
seen in Deritend Stamping, lolxd, 
Henry Sykes. 95p and Wbitehonse. 
93p. Down 13 last Friday in reac- 
tion to the sharp contraction in 
interim earnings. Fluid rive rallied 
3 to 55p. 

Swan Hunter became a promi- 
nent dull feature in Shipbuildings, 
falling 12- to 132p after-hours on 
the interim profits setback and 
accompanying gloomy statement 
about second-half prospects. 

Among Foods. Associated British 
hardened a penny to a 1978 peak 
of 67p in response to weekend 
Press mention. United Biscnlt 
were supported at 84 p, up 4. 
Following Friday’s Jump of 13. 
Hillards improved afresh to 24Sp 
before closing without alteration 
at 245p. Northern Foods held at 
S9p following the interim report. 

Reed lot firm 

Miscellaneous Industrial leaders 
plotted an irregular course in thin 
trading. Reed International were 

8Sp, and R. H. Cole advanced 6 
to 120p. Comment on the belter* 
than-expecied annual profits lifted 
George Ewer l\ more to 34p, 
while further consideration or Lho 
interim performance helped J. 
Dykes, at 2Sp. to recover li of 
last Friday's fall or A Securieor 
put on 4 to IMp but Rockware 
tame on offer at I26p, down 6. 
and losses of 4 and 5 respectively 
were recorded In WDllani Baird, 
172p. and Johnson Matthey. 435p. 

Distributors figured prominently 
in firm Motors. Oliver Rbt 
hardened 12 to 8&p in active trad- 
ing generated by Press comment 
ahead of today's interim statement 
Press comment also influenced 
Hanger Investments, 4 up at 45p, 
and Arlington Motor, 6 higher at 
X34p. white H. and J. .Quick were 
called 21 better at 48Jp ex the 
scrip issue. Reliant Motor hardened 
a penny more to Bp on Press 

English property ease 

In Newspapers, North Sea oil 
favourite Thomson became un- 
settled and gave up 8 at 242 p fol- 
lowing reports Of development cost 
increases of two important North 
Sea oil fields. Elsewhere. East 
Midland Allied Press A firmed 3 
to 90p, after 95p. in response to 
the results and proposed scrip 
issue, while buying interest in a 
thin market left Websters Publi- 
cations 2 up at 38}p. Snatch! found 
support and put on 5 at 141p as 

did Melody Mills- 3 firmer at 53p. 

After recent firmness following 
the disclosure that talks are. In 
progress with an unnamed Con- 
tinental group which may lead to 
a bid for the company, English 
Property reacted 4 to 44p. The 
situation led to a revival or specu- 
lative interest elsewhere m Pro- 
perties and not least in Bernard 
Smiley which closed G up at -lISp* 
after 'touch lag 22Gp; Eagle Star 
holds a large Stake in both English 
and Sun]ey. Property Partner- 
ships also attracted buyers and 
advanced to to 105p. I-and Securi- 
ties. results due nest Tuesday, 
eased 3 to 2(»P. while Peachey, 
despite the near completion of 
the sale of the Park West com- 
plex, shed 2 to 79p. Marnford 
Investments gained 3 to 265p fol- 
lowing the results. 

Leading Oils again traded 
quietly. British Petroleum eased 
4 to 876p ahead of tomorrows 
first quarter statement, but Shell 
closed marginally higher at o34p. 
Siebenq UK eased 3 more to 434 p, 
while Bunnah drifted a penny 
lower to 71p. On the other hand, 
reasonable demand left Premier 
li to the good at l<iP and 
Endeavour added a penny to ~0ip 
on the news of the SAl.Ofim pur- 
chase of the atoobvlln nune 
near Marble Bar in the Pllbara 
region of ’Western Austral ia- 

African Lakes were quoted ex 
the scrip issue at 26&P. 

Little interest was being shown 
in Investment Trusts and Finan- 
cials and price changes were 
usually limited to a penny or two. 
London European Group stood 
out at 27 p, up 3, on speculative 
interest, while similar improve- 
ments were seen in Challenge 
Corporation, I42p, and Equity 
income 19Gp. 

Contrasting movements in Ship- 
pings were provided by James 
Fisher. 5 better at loop following 
Press comment and Walter 
Runaman. a like amount cheaper 
at 95p xd on the chairman’s 
profits warning. The leaders were 
idle and little changed with 
Furness Withy down 8i at 
258 p xd. 

Id Textiles. Caird (Dundee) had 
a rise of 3 to 17p on Press com- 
ment. & Jerome were quoted at 
dip ex the scrip issue. 

Buying ahead of the pre- 
liminary results due ou June 8 
left Guthrie 10 higher at .Mop 
among Rubbers. Castlefield. how- 
ever. gave up 8 to 237p on profit- 
taking. In Teas. Longboume 
gained 10 to 32op end Jokai 
hardened a penny to 304 p follow- 
ing publication of tfc* document 
concerning the scheme of 
arrangement for the proposed 
merger which contains profits 
forecasts from both. Dealings in 
Rosebaugb were suspended, at 
182p, at the company's request, 
pending publication of further 
information on the value of its 
unquoted investments. 

tinned to hold the UMUgM : jo 
mining markets although activity 
was by no means as hectic as on 
Thursday and Friday of last week. 

After a brisk tWHW tf“ d ® 
Northern Mining were finally 2 
cheaper on balance at J30p. after 
140 P. a* profit-taking outweighed 
fresh speculative buying. Gj»- 
rine Riotinto, the major holder 
in the venture, hardened a penny 
to a 1978 high of 24->p but the 

London-registered T^ns*ojjfc» 

Concessions dipped 2 to lrop 
despite favourable Press comment. 

Elsewhere in Australian wsues. 

Mid-East Minerals advanced 12 to 
32p in response to a F^ss 
recommendation. while titter 
Exploration rose 3 to 40p lor -he 
same reason. , 

Base-metal producers mmed 
ahead reflecting the recent erro- 
rless of metal prices oo the 
London Metal Exchange. New 
highs Tor the year were seen in 
Peko-WaDsend, 15 better at oiOp, 
North Broken fflU. 2 up at USp 
and Pacific Copper, a penny 
harder at 4Sp. . ... . 

On the other hand western 
Mining declined 4 to 126p and 
Bougainville 2 to l30p. The coal- 
producing Utah Mining Australia 
added 10 more at 410p. 

Golds gained ground for UiP 
first time in five trading days 
reflecting the strong rally in the 
bullion price, which was finally 
S3 higher at S182.S75 per ounce. 

Business in Golds, however, 
remained quiet. A modest London 
demand for the high quality pro- 
ducers enabled West Driefontein 
to close { up at a 1978 high of 
£215 and East Driefontein put on 
18 to a peak of 734p. Eland stand 
were unchanged en balance at 
lSDp, ex rights, while the new 
shares were finally auoled at 17p 
premium. The Gold Mines index 
gained 1,2 to 153.8. 

Financials were quiet but 
Coppers tended to push ahead. 
Roan Consolidated Mines rose 5 
to a J97S high of 80p and Bots- 
wana RST 2 to 231 p. 

Members of the Norlhgale 
group all registered substantial 
gains following the suspension of 
Anglo United Development at the 
outset of trading in Canada. 
Anglo rose 25 to 158p prior to the 
suspension. while Northgate 
advanced 40 to a high of 390p and 
Westfield 12 to 9Kn. Tara Explora- 
tion closed J better at nil. 


- •- i M-r : ** ! »J* i ^ ¥ Y"S'\ A & 

— 70.47, 70.49. 70.». 70.19) KUtt 

cmmnwtw ; nM , 7E10l 7 1,0 A 71.97 7I.74 ; 68.18 

foot lnter«i - _ ' 4TI s ! 4 74J0 470.6; 468,8. 44W 

lodurtriai Onit»«r--j 4/ • • w2 9! ig3 fl lS5 .r 15SA I1M 

GoW Ulnel - ! s 59 aaffi 5.52- s.5fli B.S9. 5.6*) 5.IB 

Ort.Dlv.VcM......-.., ^ i6sa 167Q ; X6itt2; 16.98. 17.04. 18.88 

^ 8ia j 7mWl : 7.03. 7.88 7.83, 1 fi.« 

P/K ltatlii(nMK*U ^ ^ 4.055 B.Z401 6,043 

Dwifnq. m*rkel j *•«*; ^ M32 W B 7 69.68 62-4« 38.10 

" - 1 16.848 1A5» 15 14.0^.656 

Equity lauciiw M»t-. — _ ■ - ‘ __ , 

-" ,0 aD i rsi ” aw 475.9. K.NIT1 475.8 I 140 

10 am «— 5 m ATit- j ar;4. 

Lalut Index B-2» 

, ^f^r l NT , M r iriri' |„rt. uni. L tSS. CoM 



I'lRCC lHiii|Hlatk4l 1 


Hicli j Low j HiRti 1 . 






(J T) 



69.99 I »a7.4 

tiP.'Sj | 

W i 7 (SJ 

“• ~-l ^ I W i XL . xssssz , 

' w ! a? ! sssjafn. 

. Tteiiv 
mil- Kitsprf .. . 

I fit! Unifies, 
■Hitviilaliw. ' 
TiJnH ; 





, »44JS. 
! 204.1 



GoW Uloei. 





: 179D 
■ 1S3 
• 115.1 


DEALING DATES Reardon Smith A, _Etsklne 

. lMl Vor House, Burmah Oil. Thorawa 

Organisation, Premier Coasoll- 
VnS mint datS OU, Tarmac, Pacific Cop- 

s M S K zrssSTtti 

aj-is* ee* ft- &, i ,a w,® uro *5mn B ea j: 

For rate mdicatioui see end oj English Properly, P & 0 

Share In/ormalion Serrice Deferred., Savoy Hotel A, 
Stocks favoured for the call Ersklne House and Burmah OIL 
were Talbex, Chartertiall A short-dated put was taken out 
Finance, Central and Sheerwood, in Reed International. 


The tallowing securities quoted In tne 
Share -in formation Service vestwdav 
attained new Highs ahd lows lor 1978. 

BCKRS (2i 

tics mu 

Evchar. T30c 1980 
Trcav 9‘«PC 1981. 
Exchar. 8'iK 1981 
Exchqr. 9V-OC 1981 
Enher. Sec 1981 






TEAS 12* 

MINES 1131 

Treat ID'-ne E«lw. 5oc 1983 

Treas. 10:.>ne 1“T9 Treat. 13oc IMS 
Tr*»s. 9-.e iwn Funding S' at 82-M 
Tnias. 9i"PC 19B0 Treas. 8'-oc '61-16 

Funding 6b PC 85*87 
Tretf . 7Lnt '85.88 

Traitxpt. 3K 71-88 

Treat. 5 k 1988-89 
FuMIng S>«K 87*91 
EecINV. T2APC 1981 Funding DnM}« 
T mi fli-DC '80-82 Gan Sue 1990-95 
Trras. IK 1982 Rrdrrtnm. Sp< .JS-WJ 
T ms. 1ADC 1982 CMhor. 12 k 1995 
Treat. B'aPt 1982 .165 nd.1 

Exchor 9'jpe 1AB2 
Eichqr. 9'-pC '83 A 
Exchqr. B'.-’C 1983 

Fondlna S'-K^g-tM 

Trcas. 5 '.bc '08-12 

o .-.v . War Le«n S'-K 


GLC I2»?K 1982 Gto‘*ow 9>,K 80-82 
LOAMS *2i 

ICFC 10 :DCUn5.Ln. ICFC 11J.KUm.Ln. 
1986 1990 


Can «c ««§fr olp|a|| ni 

MewNm v Engineering ra» 

p roc or 1 1 >.pr 91-98 Whc-sr«- 

Caravans Inti. ^ fl T“ lnt - 


Dun loo SHIPPING M» 

Jacobs «J. 1.1 ■ 



Australians active 

Australian issues, and In 
particular the participants of the 
Ashton diamond venture, con- 

Up Dawn Same 
British Fond* — US 

Cwinil. Dam. and 
Foreign Bands .... S 13 U 

Indnstrtab 30 309 897 

Financial and Prep. ... Si US 2% 

Oils S * » 

Plantations S 9 18 

Mines 44 28 85 

Recsnt Issues ............ 3 9 1* 

Totals . 

502 5T5 U* 

Stock tion 

Barclays Bank ... £1 

I Cl £1 

Rix (Oliver) jp 

BATs DefdL 25p 

Beechara 23p 

Burmah Oil XI 

Boots 23p 


Courtaulds 23p 

Dirifilers SOp 

English Property St)p 

GEC 23o 

Grand Met. '• SOp 

Royal Insurance... 25p 
Shell Transport : . 23p 

+ li 


of Closing Chanse 
marks price tp) on day 
S 330 -5 

9 3S7 


7 2SS 





- 3 
“ 1 

- 2 

- 4 

— 2 
- 2 

+ i 

+ T 



































ftutk Incorponted Under Public Lew 
Held Office in Naples 

Cefhtal Funds and Reserves: lire 187,217.482.595 



Cash and due from Banks 
Bonds and Securities 

Consolidated credia as per Law No. 

82 dd. 17/3/77 

Saildingx, Fixtures and Equipment 
Accrued Income and Oeferred Atsea 
Other issen 

Pension Fund Investments 
Net loss reported by the Bank. 
Public Works Credit Division and 
Pawnbroker Division 
Contra Accounts 

(in millions) 
Lire 1.448.542 
.. 1 ,438,779 










Deposits. Savins* * Current Accounts 
Mortgage Certificate* and Bonds in 

Cheques in circulation 
Other liabilities 
Sinking Fund 

Accrued expenses and Deferred 


Staff Termination Par Fund 
Personnel'* Pension Fund 
Capital and Reserves 
Net profit reported by the Agricul- 
tural. Real Estate and Industrial 
Credit Division 
Contra Accounts 

( in millions) 
Lira 7,047,184 











At the General Meeting held on 29th April. 1978. the Board of Directors of Banco di Napoli unanintouil* 
approved the Balance Sheet of rha Bank and its Special Divisions as st 3 lit December. 1977. 

The Board hai taken duo note el the eupamions of the activities of the Institution, which can be summarised 

for the Bank fi.e. excluding in 5pccia> Division*) as lollowa: depoain. savings and current accounts nulled 

Lire 6.734,200 millions, with an inceesac ol Lire 1.073.200 million*, equal to 18.96"! when compared with the 

previous year - * figure*: in particular, the total amount or deposits and savings accounts registered an increase of 

27.92'... while current accounts were increased by 23.1 2 1 ',. An intrea* e of tire 724.600 millioris— equal to 
29,14''.— was registered in Bond* and Securities f excluding bonds received against consolidation of indebtedness 
ql Municipalities and Provmceil. which reached Lire 1.43B.8 millions. Cash cr;d ; tl increased bV Lire 290.400 
million*, i.e. 11.23*! (excluding crediD consolidated for L^re 740.(00 mijliom) reaching Lire _ 2.880.400 millions, 
while guarantee! released reached an i mount of Lire 732.700 million*, with an increase of Lire 324.700 million* 
(equal ro 79.5BV.1. 

The aclivitios of rh" 5pe<ial Divisions at well showed a positive trend during 1977. The outstanding 
transactions of the Agricultural Credit Division, at at the end of 1477. accounted for an amount of 
C*>e 708.000 millions, wicfl an im-reasc equal to 21.3': If compared with (he previous year's figure*. Lean* 
granted by the Real Estate Credit Division amounted to Lie® 393.400 millions, with an increase equal to 17.3 
Loan* granted bv the Industrial Credit Division amounted to 467.400 militant, showing a considerable increiu 
wih respect to the 1476 results- Late in 1977. a Public Work* Credit Divition »« activated. 

The 1977 e^anomi'c remits were greatly adected by Law No. (2 dd. 17th March. 1977. providing for the 
consolidation of the indebtedness of local governments and public administrations towards banks: said Law has 
brought about a reduction in the institution's proceeds which can be valued around Lira 40.000 million*, 
reduction which wai partially rescued thanks to a vigilant policy of casts reetrainc and the mentioned increase' in 
the total amount of depotics. »arfng* and current accounts that allowed a more oner attic and diversified 
investment policy, though fully complying with the control provisions in force in Inly limiting credit transactions. 

After the aporopriittoat made of Lire 13,200 mil lions to the Personnel's Pension Fund. Lire 13.500 million* 
to the Staff Termination Pay Fund. Lire (1.400 millions n die Special Fund for Cretfie Risks, the Balance Sheet 
for the year 1477. dotes wish a net loss of Lire 11.500 millions, whtch is balanced with hinds drawn from 
the Special Monetary Revaluation Fund, the amount of which patsrt to Lire 31.100 millions. 






Rx'rase 1 OlosiW 


C Iran Hi 









t ol. 

• Iran- 







877 p 



















Gobi, L'nioo, 






' 146p 

Com. Ontun 






CoiUL Ucrtd 








Cun*. Gold 









24 lg 













Li iun anil* 















■ — 
























lira nil Mel. 








riranrt Wff, 






Grand Mel. 














887 p 
















Land See*. 








Land Sew. 








t*snd Ser>... 


4 fa 






Marks £ Srv 






143 1- 

UnrVK Jt "j.. 




141 S 




Mirks A 'p. 



— - 


























fm* - 








Trtex: Editorial R86341/3. 88X887 Advertisements: 885033 Telegrams: Ftnantiiaa, London PS4 

Telephone: 05-248 8000 

For Shore Index aod Business News Summary J n London. Blnuingbanv 
Liverpool and Manchester, Tel: 246 8026. 


editorial OFFICES j _ 

Amsterdam: P.U. Box 1296, Anwterdam-C. 
telex 1217! Tel: 240 555 „ J 

Birin I ogham: Geornr ttousr. George Road. 

Tele* 338659 Tel: 821-454 0 922 
Bonn: Presshaos 1 1/104 HeuswUee 2-ML 
Telex 8868542 Tel: 2IQ029 
Brussels: 39 Rue Ducale. 

Teles 23283 Tel: 51S*037 
Cairo: P.O. BfiS 3010. 

Tel: 938510 

Dublin: 8 fftBvUbMi Sqoarab 
Telex 5414 Teb 785321 
Edinburgh: 37 George Street. 

Telex: 724*4 Tel: (B 1-226 4120 
Frankfurt: 1» Saehsrnlager 13. 

Telex: 418263 Tel: 555730 
Johannesburg: P.O. Bo* 2128. 

TMeTwas: Tel: 10^543 
Lisbon: Prac« da Aletrria »8-fD, Usfesia *■ 
tam 12533 Tel: 362 586 
Madrid* Esprondcedn 3S. Madrid 8. 

Tel: 441 6772 

Manchester: Queens Home, Queen Street. 

Telex 666313 Tel: 061^34 9381 
Moscow: SadoriK&unotechnaya 12-24, Apt. IS. 

Telex 7990 Tel: 294 5748 
New York: 75 Rockefeller Plaza. N-Y. 10019. 

Telex 66390 Tel: (212) 541 4825 
Paris: 36 Rue du Sentter, 75002. 

Telex 220044 Tel: 226.5743 
Bio de Janeiro: Aveaida Pres, Vardas 418-18. 
Tel: 253 4848 

Borne: Via della .Merced e 55. 

Telex 61032 Tel: G7R 3314 _ , „ 

StMkluJm: c/o Svcnski Dajrbbdet, Saalambo- 
•ragen 7. Teles 17683 TeL 50 60 88 
Tehran: P.O. Box 11-1878. 

Telex 212634 Tel: 682698 
Tokyo: 8th Floor. Nihon Kdza) SblmbU* 
Building, 1-9-5 OtemachL Chiyoda-ku. 

Telex J 27104 Tel: 24t 2? 26 
Washington: 2nd Floor, 2525 E. Street, 

N.W_ Washington D.C. 200W 
Telex 440235 Tel; (2flS) 347 8676 

advertisement OFHCB 
lUr mine ham: George Houae, George Ro*4* 
iSSfSSsO Tel: 021-454 0922 
Edinburgh: 37 George street. 

T?lM 72464 Tel: 031-226 41» 

Frankfurt: Irt SacMMcr- !*■ 

Telex 16263 Tel: 55486* _ , 

Telex 16263 Tel: 5»486# . . 

Lreds: Penman ml House. The Head row. 
Tel: 0532 454068^ 

Manchester: Queens House. Queens Street. 

Telex 666813 TeL- W1-SS4 9381 
Net* York: 73 Roekefelta' Ph auSL Y. 109H 
Telex 4230S5 Tel: t3«> iSJ 3 ®* 

Parts: 36 fine da SOBtleR RMS. 

Telex 230044 TeU 236.8601 
Tokvo; Kasalura Buadlng. Mj-lt Uehikanda, 
^&oda-^Telex J 27104 Tel; 395 4050 

SUBSCRIPTIONS „rt bookstalls wwrlri^^c oa rmxlKtti sHhaeripthm 

Copies Hepartwent, 

li -C- Ja S o| 19W 

Iwue § «es is 5 5( — — 

Pncel = ~ 35- ! 

y ; I - ! High Lunr 

L00 F.P. I b/7 153 . 142 


iftsL iillllHijS 
la- f - il HF’? m 

Sanithemi...^ -148 1— l* \b2.W 4U)j 8.7!14.1 



* F 


n mi 

ip i= 


Hluhl Lim 


p.p.i — | 

1 nyj r.r. 2 I 
COB |£10 :22f9 • 
1 * fij r.l‘ 1 

ri£37.55 £10 28:7 ; 

V, . .« .* - ' 

COS :£M ,a5r8 * 

* * r.r. • — 

— • ,f 9rt? . 

lOOu. - AS-* 

• • r.p. — . 

clou K.P. sort : 
iMiaklj 1*9 : 

l tei . 
lilU ! 
101 * 

S v 

r > 

+ ”• 





l *U : 
wi : 

t*Ai| ■ 

ioa . 

‘“i 1 

- '-*4l.Lm«*. Ltpiti Itii Flu. V arm 1 1 iv «2. 

WiAplAnnllK-v Itv.i l£«lg- -ml Cum. - 

10 1 s' Kismet 12ii Red. 1927...- 

ICDii ( i* ii - t, z, • ■ it* *. n»u. II" • si*"' •* nM - — . r 

l01*lBui»ex Water T% Rail. Ptef. 1»85 } 10««; 

26 jh - vk sums. I- 1 * I®*- M'* 1 •>' *6 

4fi*(iiireenh't h lliifl. D'ln oO llrt Weil. I'Aui— 47*a 
S9 lUlwrly 5 C*». 9i% Trf - 101 ; 

MU. Islvtiflr* tJmUfb *■ Will. — * 

OTuilhiur ■ 4k Uuni. I'n 98*2 p 

101 (Quick iH. i J.l 10S PH ,102 

Will v 1 1- "*t L’nv. L(|IV. Lll.ltJW : 90 

e itvne ft Wear 1*6 Bln- 

tl/lr».*F«le y*T€iene- IDS I’ref. '101 I 




1 is-ue| I 3 { 

(tenuoi. i «w ; 


! Clowns 


u. j <£ j 

Unu r~ 

^ - ! Hlg' 1 j | 


1 til 


20p , -N'U 
36 ; y.p. 
Visa ; M 
SOp i Ml 


/J. : 


SJ .. 




F.i*. : 

Nil , 





Hits S9/o 5B ■ *B ;tUTn*n wntn Kunt„ 

— . — 51 t ,ni ! iSpm L'anedtan lio|<i'rq*. Unk, 
9/6; 7|7 3EJUU, i5pnj|Central Majuircctnrinv.. 

1 2b . 25 Dl4w«iu Park lutta......... 


a 1,5 



. 17 ’ 
as, s. ice , 

- 10 I 

2i'6 to I 

9,tJ a* ' 

is b \» 
17 7 daioti 

u .,[■ iuna_. ....... 

17 |Klaud*rBDd Gnlrl Miauis. 

Hb jHi*r nil H ... 

9 Hun- il*n lAltuujiler) 

39j's Uu» ni rne Ms-kiuiiuih 

i Ti, n-rn 

lc3 ; Tumr* A Xf»all 

fililli MVliin. 

162uiui— 1 
M ;-l9 
... 45|tm —1 
... 65pm,— 2 

J M ■ .... 

■1 Sfi 
1 17 1 

■ M i 

1 9 i 

J 397 i-2 

■I 53 • «... 

lee ; 

Si-pi ■ .. . 


These indices are the joint compilation of the Financial Times, the Institute of Actuaries 

and the Faculty of Actuaries 



figures in parentheses show number ot 
stock* per section 


Contracting, Construction (28) _ 
Electricals (15). 

Engioeering Contractors (14U 

Mechanical Engineering flj)_ 

Metals and Metal Forming (17). 

Lt Electronics, Radio TV 05)- 
Eousehold Goods (12) 

Motors and Distributors (3®. 

(NON-3X1BABLE9 (17S) 

Breweries (14). 

Wines and Spirits (8). 

Entertainment. Catering CI7>- 

Food Manufacturing (22)__ j 

Food Retailing (15U_ 

Newspaper*. Publishing (13) 
Packaging and pBper (15) — 

Stores (39) 

Textiles (25). 

Tobaccos (3). 

Toys and Games (6)- 

Chemicals 09)- 

Pharmaceutical Products (7) 1 

Office Equipment 
Shipping (101 

MisceHaneons (S5) , 


Tues., May 30, 1978 






444 AS 


























- 02 




- 1.1 
— 0.6 
-0 3. 


- 0.1 





















































5 80 





















































































We d. 













































































BanlotB) ; 

Discount Hooaes (1QV 
Hire Purchase (3). 

Insoranee tLUeltlO) „ 

Insurance (Composite) (7). 

Insurance Brokers (10) 

Merchant Banks ( 1 4)-' 

Property f31)- 

Miscellaneous <7)_ 

Investment Trusts (50). 
Mining Finance (4). 

Orereeas Traders 03). 

















- 1.0 








- 0.1 


































































































Hr - 
1785 . 


















British Government | 







xd adj. 

xd adj. 

to date 











Over 15 years— 












AU stocks 





Br. Govt Av. Gross Red. 

Low S years... 

Coupons 15 yews.. 

25 years. . 

Medium 5 years.. 

Coupons 15 years... 

25 years- 

High 5 years... 

Coupons 15 years.., 

25 years.. 
Irredeemables . 

































m . 












Tuesday, 6U> X 


Friday ( 
May | 

Tbuix. j 
M-.V I 
2b j 

Wed. ! 
Uav , 


; » . ! 
M.iy | 

21 ! 

Frida y | 
Wav ! 

19 i 

Thun. J 
ia J 



Index 1 Yield 

Xu. .% 


20-yr. Red. Deb & Loans (15) 

57.36 '>12.94 


' 57.53 1 




: 67.72 

| 57.87 



Investment Trust Prefs. (15) 

51.75 i 13 . 71 

51.70 1 



51.62 1 


j 62.35 

| 52.35 



ComL aod Ir.dl. Prefs. (20) 

71.79! 12.70 

i l 

71.95 ] 






■ 1 

: 70.20 


1 70.47 


Kpiuiia-uimn flair nvuslfy luai rtuy iw ftealmu rree ni Gamp may. o rusum 
nasre im wuamiih eaiimaiu. v aasutani minnHwi vielo. * voreas mqifienn- 
cayt' 1 on prevutiw vtar’s earning, . Divswm «nn virta hasr/t un orosum+ns 
oi uroti wncia] csti|p*les tar ifli) v Unas # 'atiminvn r tum^i .'fuo., 

lai cotret; rwgriil shares nm now rantema for aivusiw or rankim* naiy fqr rasrrlcicti 

nly immilr * ottivrwis« miiicairt « IssitoM 

to leirter II Offerwf w holders Of Ordinary shares as • " nuhrs " " r*Aivi 
5 wav •* camuinauen. rt Minimum lander pru*. ii Ramnwmced. 99 luoutin i 

® |,h rooroanhwtlon merser Of take-fiver nn iMmvt'hiMr* “I Ivqmvt J Isroas . 'a sew Ikt Or fTrr"r«n«r ir*"“-* w ^* “*** s eataea and cqacdtucw change* are published m S 

s p^ B ^d'tss I !; n & fc vsffzsr "* mussi ^- • pro,aKmj ’ ' ec ^ sv. q^ uttrszf £ *** *** «« Tim «- «««- &•»»« 

m san 







Abbey Ub Amnoee Co. Ud. G«*r»I Portfolio Life ins. c. Ltd.* mi «* MnT1T1<r .^ 

t.ldf PAtafa flltiPUtlVIld. BC4. luaim nSathBhnvwCLViiuiuBrmu nimi Fw "°“ Management 

PnM Managed .... 

•Mraty FH Kev 4 ..H09 I SM «-■» l| - 
Ptfra al May 30. ViluaUou normally Tuesday. 

Albany Ufe Assurance Co. Ui 

SI 01dBnrUi>ciaBSt..W.l. 01-437 BBSS 

‘ 9SSSSt^:W 

» age^v} 



— Growth A Sec. Life Ass. Sac. !id.V 

American Fd . „ . 1107 j 
Far Eo«l Fd jin i 

Weir Bank. Bray-orr- Thames. Berks 008-34284 GlmsdaedFa. 1103 0 _ 

Flexible Finance.. I CLK3 | ... i _ l - on »epo«i| Fd. 2 101 j| io'i — 

Lau d bonk Socx I 54 71 . 1 . . 

laadbaak Sc* Arc.nio 0 117.91 .. . I _ Norwich Union Insurance Groan 

G.AS Super K1I....P 17*70 ] — J _ POB<uc4. Norwich VRI 3NG. 0603222 

Gnardlan Royal Exchange H2BKi.5“od — ga*3 2192 i 

Royal Exchange. KC.3. 01-5837107 PropSrrJ^od'rZ' 12SJ ‘* D 'l «“ 

Property Bond* _ ,|174 0 nLfil ... I __ Fixed lot. Fund 147.8 is3 -^1 j| C 

Hanbro Life Assurance Limited * n&umik!&'u. 1: “ S ’ 2 2»fc UD T ™ \ ~ 

mUhrkljiM un n. 1 —I — 

i.FtfJVre . 

ft tee. Are. 

y Pen.Fd Ace 

ru*dl PnAcc - 

•HSw lieoJPtni Arc. 


JVnJVcc. IU15 .127 

larJVn Acc. (195.9 

AMEV Life Aasaranee LULV 

Aina Rjw- A im* Rd . Retgare. Krigate 4010L pS-^p a^Z; 

• AMEV Managed U3U - 1451 

- amev M cdTir ieai- iuj 

: amevuSStfu... ms uoj 

i AMEV Equity Fd.... U9 6 115 ( 

1 AMEV Fixed Tnl. ... I8J 

■ «fiS&CnrS{ & 

. Arrow Life Assurance 

v- -30. Uxhrldse Bond. W IS. 

GtSSttShM Si 

Gnardlan Royal Exchange 

Royal Exchange. EC1. 01-5837107 

Property flood* _ |174 « MLiy ... | __ 

Hambro Life Assurance Limited * 

7 Old Park Lane. London. VII 0! -4000031 

Fixed lot. Dep. 1248 13L4I _ 

Equity. 174.7 183.9 — 

Property. 1410 16s 5 _ 

Managed Cap Si 145 9 _ 

Managed Ac c 178.9 1794 .... _ 

Ortffen 1209 1273 _ 

GIK Edged 122.7 129 7 _ 

American Arc 180 4 105 7 

Phi F i-Pep-Cnp-. 127.2 1X39 .. .. — 

PWI.F LOOP Ace.-.. 147 8 355.4 ... _ 

For Prop. Cap.—,. 202.1 212 i . ... _ 

Pen- prop Ace 2592 272.5 _ 

Pen Han. Cap. 2042 217 1 _ 

Managed Fund 

„ Equity FUnd 

01-5837107 Property Fimd 

... I __ Fixed 1st. Fund 

_.. . _ IVposli Fund 

Oiled V Nor. Uul Stay 1S_ 

Pen Man. Cap. 

Pm. Han. Arc. _. 

Pro. taH Rdf. Cop. 
Pm- Gilt Eds. Ace.. 

Fen. B X Tap _ 

Pm BA Arr. 

Pen. DA- F. Cap. ._ 

14 -2784 

L0 127.4 

ro 133 7! 

1.4 129 tJ 

1.8 146 £ 


_ Phoenix Amnrunce Co. Ltd. 

— 4-5. King. William SL, EC4P4HR. 01-626 & 

— Wealth Ass. IUL3 117.41 .... I _ 

— Eb r. rh- Aaa 74A 1 I 

— Eb'r. PhXqX .___|75 J 7a«l| I 

~ Prop. Equity Sc Life Aba. Co.P 

_ 1 10. Crawford Street. WLH SAS. 01-488 01 

— R. Silk Prop. Bd I 1782 I I — 

— £? Equity Bd. 728 "I _ 

_ Fie* Honey Bd. ) 148.0 | | _ 

— Property Growth Assar. Co. Ud.p 

— Leon House, Croydon. CHS IUJ 01-680 W 

_ Property Fund I 178.1 I .... i _ 

Hearts of Oak Beneflt Society 

Property Fundi Ai_ 

Agricultural Fund. 

Ague. Fund i Ai 

Abbey Nat. Fund .. 
Abbey Nat. Fill Ai 

Barchyi life Assur. Co. lid. 

385 Romford Rd. E7. '. 01 

BarcJaybooda* P2ZS 

x. -.01.1 Kn - Tavialock Place. WC1HSSM 01-387 5020 Sj 01 ^ 

OLMBlll HearUafOak (383 384| | - ^ ' 

— ■■HU! Samuel LUe Anutr. Ltd-V S^^li n d'^ ,— 
— 'j NLATwr.. Addiacombe Rd. Cray. 01-8894335 Money Fund iaJZT, 

1 ftFYopnrty Unit* — |15LQ 158 61 1 _ Actuarial Fund I 

til Property Sene* 

Managed P07.9 

Mow — 12« 

Man-PenaAcenm. _ E-J 

Do. Initial — — Kf 

GUt EdsPHuAce-QU 
Do. Initial .— Ml 


•Current anh value May 38. 

Beehive Ufe Assar. Co. LttLp 

A Property Sene* 

Managed lt d it* 

01-SM3M4 Managed Series A.. 

— Managed Series C.. 

....> — Money UnK* 

— Money Senes A 

— Filed lot. Ser A 

— Pna- Managed Cap.. 

— Pin. M a nur ed Ace.. 

— Pnx. trteod. Can 

— Pna.Gteed.Acc.. 

— Pbna. Equity Cap 

— Pm*. Equity Arc 

— Pna-Fxdiirt-Cap 

— PnB-FxdJnt-Acc__ 

S6. Pen*. Prop. Cap 

Pena. Prop. Ace 

158 61 _ 

105 J _> 

372.0 -05 — ' 
101.6 -0J — 

994 -03 — 

Actuarial Fund 

Gilt -edged Fund 

Gift -Edged Fd.cA)_ 
♦R el I re An mri ty _ 
dimmed. Ann ty , 

PrmGrowih P S uat eo a A AuauUlea 
All vFtijer Ac. Ut*.tl27^ 133.81 .. 

71, Lombard SL. ECS. 01-8231588 

BO- Horae May 2_ | 12845 | | - 

Cuadl life ABoarxnce Co. 

2-8 High St- FKIM6 Bur. Rata. PJkr 51122 

Bqty.Gth-F<LlCay£_( SU i .1 — 

Rmut-F«d.A^8_| 1164 [ - 

Cannon Aosonnce lid.f 
L Obmple Wjr H Wembley HAS0NB 01-8028878 

Equity Unit* (0690 . — MUM — 

Property L'nlta_.. 995 — — . 

Equity Bond/Ezor.. C1LM 1268-0.03 — 

PtepBondExec £4311 1387 . _.. — 

BaL BdjEsee/llnIL 0295 13 68 -0.01 — 

Dopoall Bond 1103 U6.1 — 

Equity Arcum. 174 — -1 — 

Property Accttm— g3g*» — ..... — 



Imperial Life Abb. Co. of Canada 

01-S31288 imperial House, Guildford. 


(Managed — _ 

2nd Deposit 
2nd G1K._ 

2nd Eq. PcnaAcC. 

SbdPrp Pena Act. 

2nd Mgd. Pena Aer 
2nd Peu-PennAcc 
2nd GuTphivAcc 


Current rates May 

Oaplcal Life AMnuetV 

i« 3 T 0 . 1 ^ _ 

1BL71 -04| — 

j — Ali Wtfler Ac. Utx.(1272 13181 — 

^ 2 — OAl 1 Weather Cap . 1202 127.1 _... _ 

— — Blue. Fd. I'ta. 1i?6 

— Pension Fd. Lfls. . ‘ 123 8 __ 

— Cone.Pena.Fd Ml ■ ..... _ 

. — — Cur. Pm. Cau. Ut 1313 ...Z — 

— Man. Pcu*.fJC1. 142.7 • 

— Man. Pen* Cep. lit 1322 _ 

— Prop Pens. F<L 1443 — 

~ Prop.PanaCap.lHs. 132.4 _ 

— Bdig. Soe Fen. UL 129.9 L“ • — 

— Bid? Soc. Cap. UL- 1193 _ 

g "‘ W? T i~i4 Provincial Ufe Axanrance Co. u<i 
Tiaa 222, Bishopcgste. E.C2. 01-3478533 

= 3 - SK§gtfJ!lgg 3 gild: 

j _ Gilt Fuad 2D Jli44 1204) ^bij _ 

"4 “ Prudential Pensions Limited^ 

♦84J — Holborn Bars. EC1N2NH. 01-4050222 

Id EqulLFU. May 17 (£25 87 SOS J _ 

„ . lllllu ; Pxd. InL M^17 08.74 18 VW _ 

01-0388253 Prop. F. May 17 |cZ 5 j« 2624j ....I| — 

:;™J — Reliance Hatnal 

1 — Tunbridge Wells. Kent 08P2 22571 

-* “ ReL Prop. Bd*. | 196.9 | | - 


Growth FiMay 26 ..1721 7*« l _ BJUiopegslo. E.C-Z 01-347853! 

»I=J = 

HasuodFtrod ITC.9 WL9J j GUtFund2D~ (1144 1204J -0jj| — 

C^urpcap^yvT [Sa ^ '^1 13 Prudential Pensions Limited^ 

Equity Fund (952 188J| +04| — Holborn Bars. EC1NZWH. 01-403822! 

Irish Ufe Assurance Ca Ud. . gS^J?T 7 17 ~g5;S I - 

1 U FI mb uty Square, EC2 01-8288253 P^ f7m« 17. 1105^ “"J Z 

Blue Chp May 38 [71.7 7531 J 430 n ^ - ^ 

Managed Fund — pzi_5 2j£3 .... J — Reliance Hatnal 

King & Shaxson Ltd. . . BeLPro P — I ^ I I - 

52. ivmihm. Eca. 01-8235433 ^^hschlld Asset Management 

Bond Fd. Exempt _]1B6J* 107.731 1 _ St.SwithiiwLaue.Loddoa.EC6 01C2843S6 

Next dealing date Joe 7. N.C. Prop. Mar. 31.-0143 12L6MI. I — 

GorL See. Bd. (11952 125J3J | — Next Sub. Duy JuneM 

Langhan Life Assnrance Co. Ltd. Royal Insu rance Group 

Laagham Ha HoliubToak Dr. NW6 01-2035211 New Hall Place. UrerpooL 05J 2274422 

«TkSSKi«!^~Kf 14Sjj - J Z Hoyal Shield Fd — |13U 1403J - 

Wl*p ISP1 Man Pd 1756 7*3| 1 - Save & Prosper Gronpf 

Legal Sc General (Unit Assnr.l lid. A GLSLHeten s, Lodn, ecsp hep. oi-sm 8880 

Klngorood House. Klnsawood. Tad worth. B*l- lav. Fd. 1 1252 2325] -Oil — 

«. rmw.. Bmth Healh 53458 Property Fd.* h50 7 1593^ — 

10031 ...I _ GUt Fd. [1174 12331 I — 

Surrey KT“ 
r..n twin 
Equity Initial 

Cdnlatou House, Chapel Aafa Via 0002 285 U BP 

Key Invest. Fd. 



Fixed Initial— 

“ • Do Accum. 

— InlL Initial 

Charterhonsc Magna Gp.f SS^STmtisL- 

U,ChequmSq n Uxbridge UBB1NE ' 52181 Do. Accum. 

ChrthaeEUmgy M4 40 * — Property Initial 

Chutist Money. 294 JUS _ Do. Accum. 

Chrthee. Uanagod- JS2 40 3 — Iqil 6 Grarnl ft 

Chrtluw. Equity M 4 Mil — Exempt Cash lulL .. M 

Magna Rid. Soe 1246 | iw^um 

Mag Da Unpaged 1498 [ — Exempt Eqty. lnit_[l] 

City of Westminster Assar. Co. Ltd. &emw n nMd’r 

Rlugilrad House, 0 Whllobone Road. - Do .hreum. 

Croydon CXO 21.4. 01-0840884. Exempt Bbigd. I 

West Prop FUmL.. R96 6271 — Do Accuw. ... ... 

8 S 2 lfir~SV ’S.! ai = 

C'S-r S i2i 

Si ?««--• Si 5 . i“! r. - -Jiisssa 

Frus atiig.|.cap.~.. 1U5 *1192 — Nn* 

Fen*. Mnjd Ace. ... 117J 12X4 _ lit. Ann. i 

: e 

Depoxil Wt a 122.7 129d +0.1 

CompJVM.Fd.t 179.9 nfl3 I _ 

Equity Feu*. Fd 1793 1893 -0 d _ 

Prop Fens. Fd." Z15-8 227M — 

Gilt Pena. Fd. 91-0 953 -O.d _ 

Dcpos-Peoa-Fd.t. [973 lOl.oj _..J — 

Prices on May 31 
T Weekly dealing*. 

Schroder Ufe Gronpf 

Enterprise House. Portsmouth. 0305*7) 

Equity May 10. 

Equity 3 May Z 
Equity 3 May 23 
Ftxcd InlMxy J 
Fixed InL May: 

Ini. UT Huy =5 

Equity Fv-od .. — 57 7 

Farm! nnd Fund 70 1 

Mont* Fluid ....... 1203 3 

GIK Fund . 115 

PV'LA F-.nd „ ffl# 
Feus Mug -I Cap. ..1UJ * 

IVns. Mngd Arc. ... 117) 
Fro* Money CUp.-. 464 
pen*. Money Are. ~ *8.0 
Pen*. rquUvt'up.- SS6 
!**» Kqolty Arc.... »3. • 

Fund currently closed to s 
Purtonu Units 1 197.7 

— 1 lnt. UTMmr23..~ 

— K A S Gilt May 53 

— K A SSc. Hay 23.. 

— Mngd. Fix. MayS 

— Managed Slay 

— Money Kov 23... 


I >1193 

S3. .1129.9 

ucjl — 
Nos — 

Fund currently closed to now inrostmenL 7 “■ 

Purtoc-tu Units. —_.| 197.7 | ...7| - 71. Louibard SuEC 

City of Westminster Assar. Sec. Ltd. 

TWephono 01-006 000# ™ 

First I >aits. [2106 12451 — 30. ClWon St BC5 

Propertv t'nltx |54J 57.S — HU Gth. May A.._ 

_ Opt.»Prop.Ma»2S 

Commeictai Union Group opt.seoiv.Mav25. 

«. Helm'A I. I'ndrrmtm/t. Ed 01-3037300 PPt ^ ' 

VarAnArl'IMaySD) M« I ... .1 — Sj*- 3 

Do Annuity 1 11. | 1600 | .. . | — Opt.SDopt. Uiy2S. 

swjj-7- a*! g?-a - JSffflSBBTIz-Bg »| ::::: J - 

Fqutirlvn Fund.. 7154 _ The London & ( 

M^iSV^FM 4 1767 "■ “ The Loss. Polkamof 

::::: = SRS'gSSS'pa.” 

VProterlrd In Pot 3576. J- JnSmK Prtro Fd 

ComhlU Insnyancc Co. Ltd. Flt 

acornhUl.ECA 01-0=85410 ]„.7?ratyvod; “ 

Cap Feb May IS 1122 0 — - 1 J — Propert' Fund 

^ 70 j::i =■ MAGGroopf 

Credit & Co mm erce Insurance JteTftSStos^v!! 

120. fiCSc&ISL. Lenten W1BSFE, 01-43B706I Coav.Depo*ir~,Z 

CACMagd-Fd 1122.0 1320) _.. 4 — Fqu.lrBo^" 

Crown Ufa Assurance Ca Ltd.? . ' rSuyai-so-ZZ 

load. • Do Arcum. 1BS1 113 a| _ KA S Gilt May 23 

01-0840084. Exempt Mngd. InlL 116.6 122.3 ... — K&SScUsy23. 

6171 __ Do Accum.... 1183 1243) .. .. — Mngd. Fix. Mi 

179 M ." " — Exempt Prop. InlL. 96.0 ULl) .. . . — Managed May 

60.7j *0 1 _ Do. Accum. (973 1023) . . — Money Ko» =3 

.... Legal Sc General Prop. Fd. Mgrs. Ud 
I"" Z 11. Queen ITeiaria 5L. EC4N 4TF 01-2*89878 Property May 2! 

~... — ' UUGPrpJFd. May 2~|1B0.6 10171 J - rtr>neTty3Ma ? 23 

— .Next sub. day Juno I. BS Pr.. ?V B Mb> : 

... . — ufe Assur. Ca of Pennsylvania uS^cp b 

_ 3042 New RonJ St.. W17 ORQ 01-4808305 Mn.PB4VccBMar23 

-*84 — LA COP Unit*. HS6 . 1 awh | - 

Uord* Bk. Unit TkL Mngrs. Ltd. . 

....7| — TLI-swhardStECa 01-6=3 1288 ftnp. Fen. Acc. B- 

sec. ud. fzSmrr 9 ^ M1Jl 1 “ SssStSst 

Lloyds Life Assurance • _ _ . , _ 

, I _ 30. Cl la on St. BC2A 4MX Scottish widows Group 

RK.Gth.May6... 139295 | — PO Box 002. Edlsfaunth EH18 5BU. 0314B56D 

Opt. 5 Prop. May 25 L2S3 129.7} — Inv^y3eric»I___no».i 18531 — 

Ope SEoty. Mar 25.1290 13371 ...... — Imr.ply.SertesS.— 99.S 105 3 — 

01-3837300 Opt I1 j.M«v 23 1528 -160.9! — Ini. Cash Muy23 97 4 lBZbj — 

I _ Opt 4 Man Mar 23. 1436 ISA*. — — ExVITrAcc 6bwl7. UU 14S.M — 

Z Opt.4Dopt.May25.12L2 127.6}..^ - Ex UtTrl nc l&j- 17136 1 Mliw ...— — 

" C- London Indemnity A GnL Ins. Ca Ltd. Mgd. Pen. May =5.. (aui 263j| - 

m-iTinic I The Forbuo. Reading 58351 J. • Solar Ufe Assurance Limited 

MauegManyr ... B2 7 3511 1 — ia-J2Elj PUcoLoo«tooE.GINtfrT. 0134220 

Z ftJLflSlSm -j — SolarSlau»gedS ^(1261 132-8) -02( _ 

" Z Flwd Interval D4 0 55.9( 4 - Solar Property $ ' " 

I.... — The London & Manchester Asa. Gp.? 

— — Tho Lea*. FOlkawonc. Kent 030357333 sSJJSSis 

Cap Gro «ih liind.. 
•Prop Exempt Fd. 
•Exempt Pwp. Fd 
IpxpTW Txt. Fd 

&*»■ Drpo*ll*___ 1X74 

EquilrBood**. 1347 

Family 7000** 1541 

F.mUrflI^6- — liKLO 

Crown Lite K«e M Wok mg. GU2I VXW 0(8853088 GIK _ 105 6 

Maa*;d Fund acc.. )M 0» XWa+flJ] JHJS 

Han d Fd. laein. 

Mtncd I'd. lull 
Equity Fii Arr. 

F-9UUJ Fd Inn*. 

bquityFd. InlL 
Property Fd Arc.. 

Property Kd bnu 
Property Fd TMt 
Ibi. Tat FA Inna 
Xnv.rat Fd Inn. 

Fixed lot Kd Ace. 

Ixod Ibi Kd Ace. 
Fid tat. Ftl Incm 
Inter]. Fd. Inetn. 

100M .... — 

MOM — 

100H_.. — 

wiSUu — 

1MJS ♦flL — 
2003 402 — 
iej7j) *oj — 
1013/ *0 .’ — 

10LB 403 — 

98? - 

5 S: 3 ::: = 

■6Sd - 

Mow FW Incut- IjS.A 10JM . .. 

mm. fct inrm. ho • M3.1 -o.: ■< 

CTOm Bit. IBV.*A'_ [1550 — j .... — 

1*1*4*91 InteroatnL Bond**. 1DL6 106.7] ...... — 

lUlltaJ 5J6 Managed Pd'- — 135.8 141.? — 

ltSSiod — Property Bd- 1536 X61.4 — 

10o3 ’■ 1 Z EXVriSd Fd BA- . «03 .84 fl — 

181 1 Z Rocoveiy Ed Bd ■_ U I gg — - 

_ Ameriemn FitBd.*. 537 5651 — 

Japan Fd Bd* — B14 5AlJ — 

Z • R|«» OU *May 54. "Kay 2S. —May 20. 

— Merchant investors Assurance 
Z ' 129. High Street. Croydon. 0108801 

r RSSgrci::-: §7 :::: = 

“ fSS^-:r.r. g& r: = 

_ .Money Market 1392 — 

_ Mqucy HK Pen* — 179 J — 

STS D«PO*lt ■ lag — 

144 DepontPcnx I»9 _.... — 

_ Mxxagcd 103.5 .... — 

Managed Pcua 1343 - 

InlL Equity.- W33 — — 

■ ami lull UKlUrd 1020 — 

Crssadrr Insurance Co. Ltd. iniLEqudy 1 

Vincula Houro. fewer PL Bd 01-8288931 *"*' “"J**, ‘ 

Gth. Prop May ax. {67.4 763) .. ..J - NEL Pensions Ltd. 

Eagie Star Insor/MIdland Ass. S£r£SJ ,rll Stf 1,1 '‘i 

LThroadrorotCSLECS. n5" eJaSST: U13 U 

E«*le Ml<LUntt»_[51» ■ 53.41-0 9) 595 jjelex Hooey Cap . UJ | 

KQnit, * Urw Ufe Ass. Soc. UtL? JSw ' i 

Amonham Road, High Vfrromho 
Equity Fd (112.9 Jl*. 

RSB&rdSt Si 

MSA Prpro: 

L. (112-9 111 

Kmr :» S 
?fL:» B 

0*W 33377 iCelnUlblucCap.. 

1IRJO-0J — Ncl MxA Fd Cap...|i7.8 50^ — 

11L1 3ft _ xJKAFdAct.-ftw 1 - 

111 * -0.1 — Nwtt Rub. Day May 25 

103J 40.1 — PUT New Chart Property *w a ider 

1141 40.1 — Rachaehlld Asm* Smanrou 


A R.N Bank » °o * 

Allied Irish Banks Lid. 9 % 
American Express Bk. ? % 

Antrn B.iit*. ^ Ju 

A P Rank Ltd U % 

Ii«*nry .\nsi'.i»’ht*r fl 

Banco tie Bilhnn S 

Bank of t:r«*d:l xk- Cnicc. 0 

Rank of C.\prus y « 

Batik Of N.b.VV 9 % 

lt m>iuc Rein? I a 

Barque da KIhgio | 

Uar.15%*. Bank 9 "j , 

Barnett ciirisHt* Lf »I — 

BDttuar Holdings Lid. W 
Brit. Bank or Mid Kfl't S 

I Brown Shipley ^ " 

L'an.tda Perm t TWl » ‘V. 
t'apilo] i* A C Km. Lid. B "n 
i'.iyrrr Ltd **.12? 

ticiiar HnldiHvS ■ S» .. 

A'haricrhuiisc Japhet ... » % 

Chtnihnnns J n 

C. S. C.mus W/S 

I’on soli da ted t'rertiiR.. < i‘<* 

Co operative punk • 9 ”Ti 

Cnrintliias Securitifs... 9 ‘7* 
Credit LyattlnoK - 9 ^ 
The vy p 5*u s Popular Rk. 5 *n 

Uuncun Lawriv r . ** % 

Eiljili Truit P % 

Kns'i^h Transcmit. ... * 

F'irsi 1-ondon Sees !* . 

First Nat. Fin. Corpn. 10 *5 
First Nat. Secs. Lift. ' 4*; *T» t 

i Antony i«ihhc 9 ‘ft 

Greyhound Guaranty... Q 'ft _ 

Grind lays Bank i B : 

liuuinpsr. Mahon. fl % ' 

Hambros Bank 9 ‘ft 

l Hill Samuel § 9 *ft 

t\ Hoar? & Cn t 9 °!t 

.III! 1.1 II s. Hfdye 10 *ft 

IlmifTkoniz A Shanghai 9 *ft 
ImiuMna) Bk. of Scot. 71% 

Kv.vmt Ullinann 9 *ft 

Kn'ov-lrv & Co. L:d. ... 11 j*ft 

1-loyds Rank 9 jft 

Lon dun Moreanlllu ... 9 'ft 
Edward M.inson & Co. lOJ'ft 

Midland Honk 9 *ft 

I Samuel llmiijua 9 *ft 

I Morgan Grenfell 9 *ft 

National WeMimnsicr R «ft 
Norwich General Trust 9 % 
V S Refsnu & Cn. .. 9 ^ 
K risen in si or Accopt'cs 9 o 
Rma) Bk. Canada Trust 9 
Sxd'ilesuiaor Limited ... » *V. 

K. S Schwab ■■■■■■ 

Security Tniit Co. Ltd. 30 r. 
ShoD'cy Tru>i . ... ... 
Standard Chartered ... 9 ,, 
Trade Wrv. Bank . 9 « 

TniSl«*c Savins- Bank *» >• 
Twentieth Centurj' Bk- Jp 
I’mtcd Bank «f Kuwait 9 o 

Wh 1 1?:< way La id law ... 

Williams & Giyn's 9 *ft 

Yorkshire Bank 9 o 

IM-mlP-r. erf tftr hcfftHUW House* 

7hUV 0CP-MM c -‘- ^WJItltS 

f*ilVy depeMK B S a «ftS0M , W 

a.trt lindi-r «r-. un lo frj.OOO bi - 

u!pi o’* rr rrs.rHw u»*r. 

Call ik'PteBl flwr fi.«» 

One aim 

Rate *1*® applies to Sttnins 

Scottish Widows’ Group 

PO Box 005. Edlsfaunth EH18 5BU. 031-655 

Inr-Ph'-Serias I— —p03.6 10561 

InT.Ph. Series 2 — 99.8 lOfjJ 

lm.Cuxb Mny 23. — 974 1BZU 

FiUtTtAce Kurl7- 139.6 145 .U 

ExUCTiiuc Kay 17 1361 ML9| ...... 

Mid. Pen. May 55 — 263.1 263jJ 

Solar InU S. 
Solar Managed 
Solar Pro pern- 
Solar Equity? 
Solar Cath P 
Solar InlL P 

BK & u woapr s un Allinnce Fund Kangmt. Ltd. 

2^fW^u^* , l»A0 EaamQ | 01 ’ S f 4M8 Su® All lance Houoe, Horoham. M03 64141 

Pen. Pmutou . — BZfcu J I — r.. n Un-imnau MU I _ 

E E = 

“ Son Alliance Linked Life Ins. Ltd. 

— Sun Alliance Houae, Horabam 0403 841 Cl 

— Equitv Fund 0135 33951 +03) — 

— FIxedluicreslFd... 1HZ2 1C7.6J ...... — 

— Property Fund IDS .4 1143 -i-O.S — 

— Intern aftoflfll Fd — 1032 -1-J — 

— Deposit Fund 96 2. 101 3 ...... — 

— Manxsrd Fund —1106.6 112j( +0 J] — . 

m Stm Ufe of Canada (UJZ) Ltd. 

2,3,4. Cc’CksjmrSL.SWiY 5BH 030005(00 

0171 Maple 12. Grth_. — I 1W-6 1 .....J — 

" Maple Lf.Mangd..J - 3325 +g-3 “ 

Z Maple U Eqte j2a.O I +0.7] — 

Perea l PuTfo. 1 399.4 | J -r 

Perea l Pn. Fa. ( 199.4 1 4 

Target Life Assurance Co. Ud. 

Man. Fund luc (10 L0 106V — 

Man. Fund Aec — _[1130 3225 — 

Prop. Fd. tec. hok2 1125 - 

Prop. Fd. Arc. r .1360 — 

Prop. Fd. ter. —-—UOJ.O — 

Fixed lnt. Fd. Inc. s 2 1112 — 

Dep Fd.ACc.lBC_gE| . 3®5 J -i- — 

Ret Pten Ac. Pen.. [710 J7-0 -0.4 — 

R«JlanCapPeiu-.pS2 S3 7 -0.4 — 

Ret.FI on Man .Arc. . 1126-0 3KJ — 

Re1_PlnnMan.Cap .136J 1S2 ..... — 

GUI Pea. Acc. 529.9 137.2 . — — 

Gilt Pen. Cap. (1212 . 130JJ — 

Transinfernailonal Life Ins. Co. Ud. 

38m Bldga. EC41NV. 010056487 

‘ Tulip In »«d. Fd._-fia0.r 3403-0^ — 
Tulip Maned. Fd— 1112 Jlf3 -0-fl — 

.Moa-BoodVd. 115.6 121M ^0J| — 

Man. Pro. Fd. Cap,. 1114 JgJ — 
Maa.Pcn.Fd. Ae« 132^-03) — 

Trident Ufe Aasnrtnce Co. Lt d.* 
Reutedc Houae, Gteucerter 
Manoacd J1Z2.S . 129 

— 5g| g 

[jwnvirti. StHO SXL. 

•Dfunsit Han* 5.25 Sliarc Aceounre S.fifl. 
Sub'pn. Sbir-i 6.75. Tern 1 5 six. 
J"', above SbarL- rale. 5 fu 1“.. above 
Bbaru rale. Interest piid Ouarterly ■«! 
Ehari";- lerm eharos. ' Monthly Income 
shdre 5.6C”«. 

<01495 8321) 

15 17, Cfaisartk Hisai Roao, 
iFipdo.n taw 2NG. ■ • 

Detewlr Rare 52J. Sbatc -Account? 5.73. 
Sub'pn. Shares T.Ofl, ' 

Unless otherwise Indicated. prim and net < t ril a > are In 
pence aod . am zsp. rnlnnlmt nMinriw 

ratios and aim *rc baaed an Imck anneal reports and aeMoaea 
u& rttn possible. are npdltrt) on half yearly HgnL P/B»are 
_ , ealeiilflMif on ibt haala nf net dlat itbLUn n; bracketed flam 
5 0 Indicate II per cent- or mac difference V colcaistrd an "idl“ 

4.4 dU tri l mt luB. Csrcn am baaed on *imiii»m " dtatifbmtan. 
U Yields are bawd on middle prices, am RNSS.adUmM la ACT af 

1.4 34 per cnL and olio* far value af declared «■»■ «»■■»■— ■ and 
rlgMs. Securities aith denanrinatiocK other On MerUaC BB 
n amed taeloth* d the I m e atm ent dollar ppahm 

A Sterling denom i nated accnrttto which lndnde l uwj tt m etd 
dollar premium. ■ 

• "tbp” Stock. 

* Highs and Lows marked thus have been adjusted So alltnr 

for rights issues for cash. . 

t Interim since Increased or tcscsmmL 
£ Interim si nee, reduced, passed or d e f er r ed . 
fct Tax-free to non-residenu on application. 

£ Figures or report awaited, 
ft Unlisted security, 

if Price at time of suspension. ' . 

9 Indicated dividend alter pending scrip ond'er rights Issue: 

cover relates to previous dividend or forecast. 

** PTee of Stamp Duty. 

♦ Merger bid or rearsaninitkxi In prugros * . 
f Not comparable. 

4 Some i claim- reduced final andfor reduced earnings. 

f Forecast dividend; cover on earnings updated Ip latest 
Interim statement. 

; Caver allows for conversion of shares not now ranking for. 

dividends or ranking only for restricted dividend, 
ft Cover does not allow, for shares which may also rank for 
dividend at a future date. No P/E ratio usually provided. 

* Excluding a final dividend declaration. 

* . Regional prl re. 

II No par value. 

• Tflilrte. b FI litres based on prospect us or other official 
estimate, c Cents, d Dividend rale paid or payable on pert 
of capital; cover hosed on dividend on hill umHah 
e Redemption yield. I Flat yield, g Assumed dividend and 
yield, h Assumed dividend sod yield after scrip issue. 

I Payment from capital sources, a Kenya, n interim higher 
than previous total, a Rights issue pending « Earnings - 
based on preliminary figures, r Australian currency. 

* Dividend and yield exclude a special payment. I Indicated 
dividend: cover relates to previous dividend. P.E ratio based 
on latest annual earnings, a Forecast dividend' cover bawd • 
on previous peal's earnings, v Tax tree op u> 30p In the L 
w Yield allows for currency clause, y Dividend and yield 
based on merger terms, t Dividend and yield Include s 
special payment: Cover does not apply to special paym e nt . 

A Net dividend and yield. B Pref eren ce dividend passed or 
deferred. C Canadian. D Cower and P/E ratio exclude profits 
or D.K. aerospace subsidiaries. E Issue price. F Dividend 
and yield based on prospectus or other nffictui estimates for 
1977-78. G Assumed dividend and yield after pending scrip 
and/or rights issue. B Dividend and yield baaed on. 
prospectus or other official estimates for 1078-77. X Figures 
based on prospectus or other official estimates for J0781 
M Dividend and yield based on prospectus or other offic ia l 
estimates for UJ78. N Dividend and yield based oo prospectus 
or other odi Ini estimates for 1B7B. P Dividend and yield 
bam! on prospectus or other official estimates for 1877- 
O Gross. T Figures assumed. It No significant Corporation 
Tax payable. Z Dividend local to dole, ff Yield based en 
assumption Treasury Rill Rote stays unchanged until mmdij 

0.4128.4) of sioelt 

X7 \ 81 1 A bbrewtaiiocs; « ex dividend; sex scrip issue: vex rights stex 
all; d ex capital distribution. 

“ Recent Issues '*• and “ Rights " Page 42 * 

S3 } This service is available to every Company dealt la oa 
8-5 1 Stock Exchanges throughout the United Kh^dam for a 
lee of £400 per ananm for each security 


The following is a selection of London quotations of share* 
previously listed only In. regional markets. Prices of Irish 
issues, most of which ere not officially listed in Tanid«w u 
arc os quoted on the Irish exchange. 

Conv. 9% ■80/83. £96»* 

Alliance Gas 73 +5 

Arantt 340 

CajToll CPJ.i « 

Clcndalkin 48 +5* 

Concrete Prods- 33d - 
Heiton(Hldgs.t 41 

lns.Corp.-_ - .348 

Irish Ropes 22® 

Jncob 78 +3 

Sunbeam ... ■ 2P> -3J» 

TAI.G 365 -5 

Uni dare. 90 . 

H -Ai 





Wednesday May 31 1978 

fj QMttT »»«fH * l7to 

R rincrem _ 

U vo¥D*o»Miwr*'Tem» 


A Nvaapun pTTIS 

B mTtSH stkml i r-Lil 


iP Xtwom RM«0« O»1*MCtWtW^[ 

JWflT feMTTM * SOKh UP 7 ^ 

^Tn.'.oaHM7*2ai mi Exsanna 

LONDON. SW 1 TEL: 01 -834 6890 

ICI German plant 

obtains go-ahead 


trade gap may 
be narrowing 


Swan scheme goes 

into dry dock 

DUSTRIES has been given the 
zo-ahead far 'is EMfon plan in 
develop a chemicals plant in 
northern Germany. 

It is also taking over an evisl- 
jnc chemicals producer at the 
Wilhelmshavcn site. Alusuisse 
Atlantik. in order ro build up 
an immediate presence In the 
West German chlorine and 
caustic soda markets. 

1C1 is engaged in a big 
■strategic move into West Euro- 
pean markets throuzh a parallel 
investment of some £34Qm at 
Withelmshaven and on Teejwide 
in the U K. 

The company 'it'd yesterday 
that if h as reached farina) agree- 
meni with . the Lower Saxony 
regional aovernmenl to buy a 
790-acre site at Vilhclmshaven 
for a chlor-alkali chemicals plant. 

This Kill involve Ihe develop- 
ment nf brute fields anil the pro- 
duction of chlorine and caustic 
soda. The chlorine will he used 
at the site for the manufacture 
of vinyl chloride monomer 
fVGMi and polyvinyl chloride 
I PVT. I . VCM is the raw material 
for the manufacture nf PVC. one 
nf the ir.ost widely used eom- 
modttj plastics in Western 

The project includes the build- 

ing nf marine terminals to 
handle VCM. ethylene and other 
intermediate chemicals. 

Despite the current over- 
capacity for some plastics in 
Western Europe. ICI believes 
there are prospects tor steady 
growth in the markets far 
chlorine and related products 
and that new capacity will be 
needed in the. early lSSOs. 

Building plans 

It plans to build 300.000 tonnes 
a year of VCM capacity at Wil- 
helwshavcn and a 115.000-ionnes- 
a-ycar PVC plant. Its present 
VCM capacity in the UK is 

340.000 tonnes a year with 

270.000 tonnes a year for PVC. 
but the company now. intends 
to build up its business in Con- 
tinental Europe through local 

Id’s chlorine capacity in the 
UK is lm tonnes a year. With 
the acquisition ' of Alusuisse 
.Atlantik it is obtaining an extra 
110.0(10 tonnes a year chlorine 
capacity on the Continent. 
Eventually it will need to build 
another chlorine plan! at WiJ- 
halmshaven to feed the VCM 
plant, hut this new world-scale 
plant will only Follow at a later 

Work at the Wilhelmshaven 
site will begin this summer and 
it is hoped to bring the plants 
oh stream in 1980. 

Alusuisse Atlantik has been 
taken over from Lonza, a sub- 
sidiary of Alusuisse. the Swiss 
aluminium group. No price has 
been disclosed, but the Swiss 
company is known to have been 
concerned at the 44 unsatisfac- 
tory profits "of its subsidiary. It 
showed a loss last year with 
turnover dropping by some 10 per 

The plant employs more than 
100 people. ICI intends to 
develop the existing business as 
well as using part of the produc- 
tion for its new plants 

Under TCI’k parallel expansion 
m the UK a 55.000 tonnes a year 
PVC plant is being built at Hilt- 
house on Merseyside to come on 
stream next year. And at Tees- 
side £H0 m has been sanctioned 
to boost chlorine capacity by 
170.000 tonnes a year and VCM 
by 150.000 tonnes a year. 

Other major ICI sites on the 
Continent- are at Rozenburg in 
Holland and at Fos in France, 
which form part of the com- 
pany's thrust lo increase sales 
in the EEC, partly hy local 
manufacture and partly hy 


TOKYO, May 30. 

French court puts three 
receivers into Boussac 

THE PROBLEM of Japan’s 
trade surplus with the EEC 
may at long last be growing 
less ‘ acute, judging by the 
figures Tor the first four months 
of this year. 

The figures, by the Japanese 
Ministry of Finance, show 
Japan’s exports to the EEC 
rising In dollar terms by 16J9 
per cent to $3.1L9bn (fl.Tbn) 
and her imports from the EEC 
increasing by 37 per cent to 1 
$1.7 45 bn. 

The resultant deficit, on the 
Japanese Customs clearance 
basis, which overstates valne of 
imports by i Deluding freight 
and insurance, is $L374bn, or a 
marginal 1-5 per cent less than 
the EEC deficit in the first four 
months of 1977. 

Japan Is making much of the 
figures, claimed to reveal the 
first turnround in the EEC- 
Japanese relationship siuce the 
bilateral imbalance began early 
in 1976, causing serious 

European comment is more 
guarded, though it Is admitted 
that the figures may reveal the 
first signs of a trend toward a 
better balance. 

A point which immediately 
draws attention about the 

Japanese figures is that they 
are expressed in dollars, and 
thus tend, because of the de- 
preciation of the dollar against 
(he yen in the past year, to 
overstate the Increases in 
trade in both directions 
between Japan and the EEC as 
measured In each other’s 

Fall possible 

A 16-9 per cent rise in the 
value of Japan's exports to 
the EEC in dollar terms could 
correspond to an actual fall, 
or at least to a very modest 
rise, In yen-denominated 

This would be in line with 
known efforts on the part of 
Japan to restrain exports to 
Europe of important items 
such as steel, cars, ships and 
colour television sets under 
guidelines set in the past fetv 

The yen-denominated figure 
for Japanese exports to the UK 
seems likely to show a particu- 
larly sharp fall, given that in 
dollar terms exports to Britain 
were up only 2Jt per cent 
Details, Page 7 

Bonn surplus higher 
in first four months 


PARIS, May 30. 


BONN. May 30. 

A TEAM of recovers has been 
pul into France's Bnussac 
textile empire, which is losing 
Fr 10m a month. The 

Paris commercial court took the 
-step following the croup's 
admission that it could not meet 
ns May wage bill and social 
security payments. 

The three court -appointed 
manager* will nmv have ihe task 
nt work in z mil a debt re- 
scheduling and repayment pro- 
gramme with creditors, and a 
plan to nerinil the survival of at 
least part nf the group, whose 
textile interests are spread over 
31 companies. 

The new regime imposed nn 
the company, which finally ex- 
cludes the Boussac family from 
manacement is a half-way house 

between the three-month exten- 
sion of legal action against the 
group by creditors, granted by 
the court last week, and a final 
step of filing for bankruptcy. 


The receivers will have to 
decide how to raise the money 
to settle with creditors and to 
meet current costs, and it is diffi- 
cult to see how they can avoid 
disposing of at least some of the 
group's saleable assets. 

One line of approach will 
remain the attempt to persuade 
M. Marcel Boussac. the 89-year- 
old founder of the group, to 
commit more of his personal 
fortune to the company. 

Another will depend on the 

Government's readiness to pro- 
vide financial underpinning for 
the group now that the decisive 
step of bringing its affairs 
totally under court control has 
been taken. 

The rereivers may press ahead 
with the factory closure pro- 
gramme in the Vosges, in North- 
East France, where the group's 
manufacturing capacity is con- 

The company unveiled a plan 
to reduce jobs in this region hy 
about 1,500 shortly before the 
court first intervened last week. 

The best that seems to oe 
hoped for is that the Government 
would accord priority to the 
region in its plans for industrial 

Semi-conductor blow to GEC 


A PLAN by the National Enter- 
prise Board lo become a world 
leader in the semi -con due lor 
industry has been greeted wuh 
a mixture nt alarm and dis- 
belief liv ihe UK i-nni punas with 
which it will he competing. 

The plan is in particular :t 
blow In the General Electric 
Company which is on the point 
n{ a decision on whether lo move 
into nia'-i produciion of semi- 
cnndin-lnr* through a.-fpiisition 
of a l .S company, or possibly a 
jmnl venture wiih one nf the 
established leader* in the 


In the last jear. GEC 
abandoned it.* former aloofness 
from i hr i.cmi-conducinr industry 
hrcau>c il realises that produc- 
tion nf microscopic ele, ironies 
becoming .i key to success in 
many ocher field.* such ns lele- 
I'nnununientions and defence 

If it goe> ahead »iih the idea. 
GEC. may find itself in conipe- 
tmon with n plan i set up hy the 
Enterprise Board with taxpayers’ 

The Board received Cabinet 
approval la<t week in spend 
about E30m. rising to perhaps 
I5tJm over a period, in sei up a 
subsidiary in make semi- 

conductors. The Intention is to 
move straight inlo mass .produc- 
tion of the most advanced com- 
puter memories By the end nf 
Ihe decade, liny silicon chips 
containing 1*4.000 memory cells 
wilt have beer developed hy 
Japanese and American 

The hoard intends in hring to- 
cel her a team of top designers 
and engineers, some of them 
expatriate Rrifnns working in the 
U.S.. lo jump straight into the 
M.OOO-element memory market. 

The main uncertainty about 
ihe venture is whether ihe new 
subsidiary wilt be able tn 
achieve big enough sales in the 
U S. in make mass production nf 
ihe circuits economically 

Although the Enterprise Board 
is hoping its new subsidiary will 
make good profits eventually 
some observers believe it may 
have lo be subsidised for a sub- 
siantial period. 

The only UK production 
nf mass-produced computer 
memories at present is at ITT’s 
plant in Fools Cray. Kent. 

One possihle plan considered 
by Government officials was to 
provide incentives to ITT and 
perhaps to Milliard, the Philip* 

subsidiary, to increase and 
develop production for world 

The enterprise board appears 
to have cut straight across this 
idea with a plan for a completely 
new company starting from 

Industry executives who have 
been in close consultation with 
Government officials about the 
future of semi-conductor manu- 
facture apparently knew nothing 
about • the enterprise board's 
plans until this weekend. 

Initial reaction has been 
muted, but there is profound 
scepticism within the industry 
about whether the enterprise 
hoard can pull off such a entre- 
preneurial coup, if it should fail. 
UK-based private industry will 
race additional competition from 
a Slate-subsidised loss-maker, in 
addition lo their competitors 

A Confirming the Board's plans 
last night Sir Leslie Murphy. 
NEB chairman, told an interna- 
tional conference of petroleum 
investment analysts in London: 
" Importing nil these sophisti- 
cated products and exporting all 

Ihe unsophisticated ones is not 
i he ideal situation." 

News Analysis. Page 8 

WEST GERMANY had a larger 
trade and current account surplus 
I in tbe first four months of this 
year than in the same period of 

Figures today by the Federal 
Statistical Office in Bonn show 
the January-April trade surplus 
at DM ll.fibn (Slim), against 
I DM ll.Sbn a year earlier. 
Figures for the first quarter bad 
shown the trade surplus slightly 
lower than in 1977. 

Tbe January-April current 
account surplus, after allowing 
for deficits on services and trans- 
fers, is well above that for the 
same period last year. DM 4.8bn 
against DM 3.4bn. 

The April figures alone show 
a DM 3.3bn trade surplus and a 
DM l.Tbn current account sur- 
plus. A year before they were 
DM 2.9bn and DM 900m respec- 

The trend of West German 
trade and payments is bound 
to be scrutinised with more than 
usual care abroad in view of 
the Western economic summit 
conference here in July. The 
figures so far are likely to be 
seen as support for the views 
of those who feel Bonn should 
try to do more to stimulate 
demand at home and increase 

The German answer has been 
that tbe rise of the D-mark -was 
bound to lead to an increase, 
in the medium term, in the 
trade surplus expressed in terms 
of West German currency. 

6rOM bn 



Seven months after its plans 
for a capital reconstruction and 
cash distribution were* sketched 
out in the annual report. Swan 
Hunter reports in its interim 
statement that the to 
be held up for an unspecified 
period. The shares responded 
with a 12p fall to 132p yester- 

Tbe reason for the delay is 
that the North Shields ship- 
repair yard, which is an 
important part of the trading 
assets left to the group after 
the nationalisation of its ship- 
building side, is facing a severe 
shortage of work. 

This poses a problem for 
Swan Hunter’s reconstruction 
plans: These, it appears, involve 
the liquidation of the parent 
company. Swan Hunter Group. 
followed by a distribution to 
shareholders of shares in the 
continuing business and the 
surplus cash. As a result, the 
cash will be subject to capital 
gains tax rather than income- 
tax. Even before the ship- 
building compensation is settled, 
there are substantial liquid 
funds already available for dis- 
tribution— -possibly something 
approaching £20m, or roughly 
I00p per share. However, some 
difficult decisions have to be 
made about the future shape of 
the labour intensive ship- 
repairing business, and Swan 
Hunter clearly wants to resolve 
those before it starts making 
cash handouts to shareholders. 
It also wants to be sure that the 
new quoted company will be 

So there could be a delay of 
several months or more before 
the plans are put to share- 
holders. The eventual sums may 
still look about the .same — a 
cash distribution (including 
nationalisation proceeds! of 
something in the rough order of 
I50p per share before tax, plus 
a share in a business which at 
present is not making trading 
profits. Given uncertainties 
about the timing, the present 
share price looks about right. 

Index fell 3.6 to 472.5 


more than a fair share nf d 
ful schemes. 

Surprisingly, the last hi 
contained no measures to 
late the area more closely 
it may now be that the L 
Revenue has decided to ) 
car leasing schemes quatt 
for 100 per rent allow: 
under tighter control. If tl 
so. it would seem reasonab 
conclude that it would el 
its battle ground very carol 
However, HaroJd Perry has 
advised that the Revenue is 

likely to succeed" here. A* 

ic tn i-Anlimln IhkIhi- mu! 

J I — J ) ) i -i -i 

• s -j A X O N O J F M AM 

1977 1978 

titiement, and arrange a plac- 
ing itself. There may be good 
tax reasons for this, but Nor- 
thern Foods hopes that the 
dividend hoist will make tbe 
share alternative more attrac- 
tive to the Samworths. and in- 
deed everyone else. 

Car Leasing 

Harold Perry's disclosure that 
.ffie Inland Revenue is challeng- 
ing the company's claim for 100 
per cent first year allowances 
on leased passengers cars came 
too late yesterday to have any 
effect on motor distributors' 
shares. It is not yet clear what 
the Revenue is basing its case 
on, but it looks ominous Eor the 
sector where business in car 
leasing has mushroomed in the 
past two years or so. 

But in the longer run the 
price competitiveness of Wesl 
German exports on foreign mar- 
kets will be weakened. 

Further, it is said that the 
increase in German imports in 
real volume terms in the last 
few years has been far higher 
than tbe increase in exports 
expressed in the same way. 

None of this alters tbe faci 
of foreign pressure, and the 
desire of tbe German hosts thai 
the July summit conference be 
a success. The door is being 
kept open for further measures 
of economic stimulation, but the 
timing and extent have yet to 
be settled. 

Northern Foods 

Whatever the future of divi- 
dend controls. Northern Foods 
seems confident that its 69 per 
cent proposed dividend increase 
will not be affected. The reason 
appears to be a proposal to 
place most of the Sra Northern 
shares which will be due to 
tbe Samworth family as a result 
of the Pork Farms acquisition. 
Contrary lo earlier expectations 
that this would be done directly 
it is now suggested that the 
family will take up all the en- 

Car leasing became particu- 
larly attractive following a deci- 
sion by the Special Tax Com- 
missioners in July 1975 that 
motor cars leased out to com- 
panies could qualify for 100 per 
cent capital ' allowances, as 
against 25 per cent per annum 
previously. The decision also 
meant that unlike owned cars— 
where there is a restriction on 
an annual write-off of £1.250— ■ 
there would be no restriction on 
the amount of an annual leasing 
charge which lessee companies 
could deduct in establishing 
taxable profits. 

The subsequent boom in car 
leasing owes almost everything 
to this case, which hinged on 
whether leaded cars fell within 
the 1971 Finance Act definition 
of vehicles "provided wholly or 
mainly for hire to, or the car- 
riage of. members of the public 
in the ordinary course of trade " 
The opportunities which it 
offers for considerable tax 
avoidance have also attracted 

is to continue leasing cars, 

Local authorities 

For the first time in 
weeks the coupon on the nr 
issue of so-called “yew 
local authority bonds fell 
terday. Given the calmer 
ditlons now prevailing « 
money markets this was ni 
surprise but what is sli 
surprising is the font 
demand by local authority 
five year nvmey on a fin 
rate basis. j 

For a time last year it lq 
as if the authorities *i 
make his use of floating 
issues in the corporation 
market to meet their (nt 
requirements. In fact, i-lo 
a dozen authorities did 
five year money at margi' 
generally 3 of a perce 
point over interhank 
However, they had to quet 
at the Bank of England 
with ail the other autho 
and when the banks came 
with much more flexible 
longer term money, the aw 
ties deserted cn masse. 

Why then arc local an 
lies now raisins five yearn 
at margins of 3 of a pore® 
point over the interbank 
in the negotiable bond ma 
Tbp answer seems tn he ti 
is very much cheaper. It 
corporation slock raarfe 
local authority has to pa; 
a full prospectus nr offei 
sale. Not an in the negot 
bond market where the g 
is placed much more cb« 
directly with institutions. 1 

If they were allowed tol 
the local authorities would 
in issue much more of 
debt by way of private p 
ment but the Bank of En$ 
insists that nn more than 
can be placed at any one 
Consequently, the local a«t 
ties are now side-stepping 
stock market and re 
increasingly on the hi 
Sooner or later the Baa 
England and the ■ j 
Exchange will have to ac| 
ledge this fact of Ufe£ 
change the ground rules, a 



European Ministers 
fail to agree 

on energy package 

Chambers to quit soya foods 


BRITISH development of soya- month l»y Cnuriaulds. another 
based meat substitutes has been pioneer with its Kesp me3l sub- 
spverely hit bv the decision of siitutes made from vegetable 
rhr sole UK manufacturers of fibres, to soil its vegetable pro- 
defatted soya flour# used far rein business lo Dornay Foods, a 
human consumption to pull out division of the U.S. Mars food 

.. . u ». * Chambers plans tn cnnxorr it? 

Ghanthcrea fid f S ■ ■ P x lrac n 0 n plant tn handle other 

raw materials used for its main 
range nf business or seed crushing and 

meals, lias decided to quit the pfJihll? nj] refill jn S . 

£Wni-a-year business, *jflc About 30 jobs arc affected by 
develop i or sophisticated exit ac- ^ c | OSU re, although the com- 
tjnn processes, because of severe y hopes to keep on as many 
oversea* compeUMun. . workers as possible. 

Despite iL< technological ad van. 

Sic l w compel"™ pnL'lirh i Continued from Page 1 

producers in the U.S. and Brazil,; 

which have substantial excess ; | 

capacity. - [ 1C* 

In addition. Chambers nuJ vement in the eastern pnsi- 
helieveK that the growth in , Uon sufficient to hold out the 

Development of soya-based 
meal substitutes in Britain has 
heen along two main lines. 

The first type, developed by 
such companies as Courtsulds, is 
to spin highly refined soya 
isolate# in the same way as yarn 
tn produce a " meat " substance. 

The other process is to develop 
defatted soya Hour under pres- 
sure at high temperatures. 

Cham hers is mainly concerned 
with this latter process although 
a small pan of its output was 
used by Cnuriaulds. 


BRUSSELS. May 30, 

ATTEMPTS TO secure approval continued failure to adopt the 
of a package of EEC energy steam coal subsidy scheme, 
measures in advance of the which he has been pressing for 
seven-nation Western economic more than a year, 
summit in Bonn in July broke tt would provide a £7 per 

down this evening in tbe face of tonne subsidy for EEC-produced 
deep disagreements between coal, which at present accounts 
Common Market Governments. for only about 3jm. tonnes of 

The principal cause Of the the more than -25m tonnes 

failure was the inability of EEC burned in Community power sta- 
Energy Ministers to reconcile tions each year. 

British and German demands for Agreement on the proposal 
a £200m three year subsidy « as made even more difficult b\ 
scheme to encourage the use of Germany's demand that it be 
EEC-produced coal in power given a special rate of subsidy to 
stations, with Italian ahd French reflect the high production costs 
demands for EEC aid for the in its mines. The German dele- 
closure of excess oil refinery ga tion a i so wanted to expand an 
capacity. existing programme for EEC 

Italy, which is saddled with a financing of coking coal 
particularly acute problem of The only elements in the five- 
overcapacity. s aid that it would point programme before them 
approve tbe coal subsidy scheme nn which Ministers were able to 
only if an <»qual sum were alio- agree were two projects for 
cated to help the refine o' sector, research into energy saving and 
But this demand was dismissed the development of wlteroaiive 
as excessive by boih Britain and energy sources. 


Mr. Anthony Wedgwood Benn, 

UK Energy Minister, also Vfppl mnU r r 

opposed the refinery scheme UldACl a 

strongly on the grounds that it p. j p-i 1 1 \ 
would involve a surrender of TinGfl 11 l II (1(1(1 
national control over North Sea 

DRY. sunny; cloudy later. 
London. Cent. 5. and Cent. N. 
England and W. Midlands 
Dry. sun. Max. J4C /75F). 

5.E. England, E. Anglia 
Fog, dry. Max. 22C (72V). 

E.. N.W. and N-E. England, 
Lakes, Isle nr Man, Borders, 
Edinburgh, Dundee, Aberdeen, 
S.W. .Scotland, Glasgow 
Dry. sun. Max. 24C (75F). 
Channel L, S.W. England 
Sun. perhaps showers later. 
Max. SOCXXIC (6SF-72F1. 

N, and S. Wales 
Sun, perhaps showers later. 
Max. 24C (75F). 

wj..- i 




Cent. Highlands, Moray Firth 
Sun, perhaps showers later. 
Max. J4C i75F). 

NJS. Scotland. Orkney, Shetland 
Dry. sun. Max. ISC (64F). 

Argyll. N.W. Scotland 
Dry. sun. Max. 20C <6SFt. 

N. Ireland 

Dry, sun. Max, 24C i75Fi. 























S 2.i (7 
F 22 Vi 
F 21 71) 
C 21 70 
F IS 84 
S M 75 
5 21 7 n 
S 21 n 
S M 7 B 
r. t7 
S 3S 72 
F 2 » 75 
S 19 K 
F «n ss 
S 20 
f 24 T.i 
S ?1 rn 
F SI 72 
5 n 7T. 
S 21 78 

j Loudon 
. Loxembrs. 
! Madrid 
j Newcastle 
! Fans 
, Reykjavik 
I Stockholm 
;Trt Aviv 
: Warsaw 

-C K 
S il 17 
F 24 75 

f te hr 
S 23 S3, 
Tf 24 7* 
C Ifi 81 
F 19 fl« 
S .13 j.» 

F S 4S 

S 21 r. 
S 24 55 
F 24 f:, 
S 28 IS 
P IS w 
S 2S 7.3 

Who are pleased to announces 
their new U.K. contracts. | 
Crusader administer a large o' 
portfolio ofU.K. and oversea! 
group employee benefit schems 
using an efficient computerise 
system keeping administration 
costs to a low level; thus l 
enabling highly competitive: 
rates to be offered. 

For full particulars write to: 

domestic demand for soya-hofcd ; of real procrcsF-" 

Mini? cuhbt ihilOc hue hAPn Inn r n..i m 

«ilow to Justify iLs investment in , p nHJf Minister and honorary 
the market. president at today's talks, said 

Rinco these meal sutomulc* \,\TO had n»i been effective in 
were ml reduced min the UK in spreading moral values and 
Hu? Carl.' 19. m., only about uiH* democracy !»<•> nod the bounda- 
s hop per > n l 0 has hnuuht them- nr> of its member countries. The 
put u is believed that the retail ; alliance .should not iry to impose 
mark*! if now be^inniny lo pick • »j<« own value* on others 
up. re a fid *he widespread use 1 Our Foreign Staff adds: Pravda. 
n f nto.if substitutes in the cater-; the Soviet Communist Party 
ins fanri? market nrwsnaper. Today aGarked re- 

Chambers' mmo fallout marks made on Sunday hy Mr. 
clOfisJj ***• decision UstjZbigxuew Breezisski. President 

Carter's chief security adviser. 
Mr. Brzezinski.said during a. U.S. 
television interview that there 
should be an international 
response to Soviet and Cuban 
miiftury activity in Africa. 

Pravda said that the remarks 
were ihe latest attempt by the 
real perpetrators nf an "invasion 1 ' 
in Zaire to fabricate stories about 
Soviet and Cuban involvement 
there. “ There is no need lo dony 
Brzczinski's inventions. The 
Soviet Union is not iTivntved in 
events in Zaire . . . neither are 
there any Cuban soldiers oi 
military experts in Z Aire. 11 

oil policy lo the Community. He 
| was particularly against a propo- 
: sal to limit new refinery construc- 
tion until the problems in the 
'sector had been resolved. 

By Our Own Correspondent 

, BRUSSELS, May 30. 
Fines totalling more, than 
£110,000 have been imposed by 


He refused to be swayed bv the European Commission on 
assurances from the EEC Coni- five French and Italian steel pro- 

e C 0 F 
R 21 TO 

nti&stno that the proposed ban ducers far failing to comply with 
would not affect the two British the EEC's steel price policy, 
refinery projects on Canvey They are the first penalties to 
Island and at Tfifflt Bay, and that be imposed since the policy was 
compliance with other elements introduced about a year ago. 
of the scheme would be entirely The heaviest fine, about £56,000, 
voluntary-. These would mainly was imposed on Usinor. the large 
email regular reportiim tn French company based in Dun- 
Erussels by oil companies no kirk. U is alleged to have sold 
their refinery through out. products at below the mandatory 

Mr., Bean expressed disap- minimum prices set for reinforc- 
: pomtmeat at the energy council'! mg bars and eolla. 

Blackpool S 24 
Bordeaux .S 24 75 

Bonlopnc S 24 73 
Caaahluca. r 21 79 
Corfu s 24 75 

Dubrqrolk F M 6S 




5 *1 79 
F 23 73 
F 19 SB 

Gibraltar F 19 6a 
uucnucy s !l 70 

tnuuhrucfc F IS 
Inverness S IS 84 

I. of Sian S ts si 

i Jersey 
Hal 43a 
f Venice 

‘C “F 
S 19 GE 
C M rt 
F a 72 
F 23 73 
S .1 79 

5 ;i jd 
s 22 ■<: 

S 20 ff» 
s 24 
c m 

F W « 

a n 72 
C 14 ;l| 
7 H 
F 21 7 « 

. Douglas W. Scott Manager. Group Sales. & Service Departing 
■* Crusader Insurance Co. Ltd^>flncula House, Tower Hace, 

| London EC3P3BB 

j / am interested in the following Crusader Booklet (s as reqtfr 
- Compaoieswi(fiS-50emp/oyees C3 
* over 50 employees £3 


■ Compan 

j Name__ 
] Address, 


A rremter of tnn Bou/ng Grrup 

C— CkRsL F— Fair. 

Reamered ai the Poet Office. Prnted hy St. Cleauuu'i Presi lor and duB 
hy the FlpaocuU Timas Ltd,, BraeXsn Kousv. Cinooo .Street. Lonffoa- EC 4 F 
V G a O The Fbuscul Thans LM 

L/s \ l