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^-Troubled French bank Credit Lyonnais, which 
Wiethe subjected a FFr443bn ($7.5bn) government- 
^badied rescue package, plans to seR more of its 
mdnstrial bokfings, chairman Jean Peyrelevade 
/smd. - Mr Feyrefevade, who was drafted into Credit 
--iyormais.b^the Balladur government in November 
-. to orchestrate the rescue and prepare the Han* 

", forprivatisation, had already annm m r^ pia^g 
' to sell PFWObn of assets fay tiro end of next year 
;and now intends to make additional disposals 
.worth up to FFrl5bn. Page 26 

.. Paribas moves ahead: Leading SVAnnH h anking 
grtrap Paribas continued its recovery with a 64 
percent increase in net profits to FFrL45bn 

helped by a strong performance in market - 
trading activities. Page IS 

' Vtusshaslo own land? Individual Russians 
will become landowners for the first tfm*» under 
a plan for state and collective forms to sell land 
to their workers. Page 28 

Israel accepts Palestinian police; Israel 
will allow a feat oimtingent aim to 400 Palesthmm 
poftcetolro Stayed in the Gaza Strip next week 
in the first move towards Palestinian self-rule 
; fa fee occupied territories-Page 3 

" Troop® move lntp Natal: South African troop 
Kbtfbrcattsnlff moved into .Natal province to 
enforce a state of emergency while rival parties 
in the. province seemed to have declared an infor- 
mal Good Friday trace: Page 4; A prickly bear 
touted, page 10 

Malaysia’s central bank chief quits: Jaffor 
Hussein, governor of Bank Negara, Malaysia's 


fat losses otmarethan; M$5,7bn ($2.ibn) through 
foreign currency transactions last year^Tbat: 
followed a loss of nearly M$lObn in 1992. Pkge.4 


US economy set for robust growth 


Russian 



Bpytoflfor Britain - 

• 1 •• •. yatfimJSintsov (left), 


n V.C< ..;Q. 


r industry .exertitiTC. 

. accused of spying for 

Britain yrid -fm ftnwafain 

j^evistohihat he sup- 
plied the UK with infor- 
- matron bn Moscow's f 
_ Middle East arms sales. . 

SCr Smtsov, who said 
Thewas codenamed 
; ’^ehMtrtes^by tiro ' : . 




' tiibymtei Prisb^iV^ ■ 

and couWrfoco tondeathpenaBy tfoonvicted . - . 
oftreasan." . 

Kantw ghcsbatt wam l wff OS trade secretary 
Mickey Kantor said aeontinuingrefasal by Gatt 
ministers to discuss wort? ers’ rights would under- 
mine US support far a hew world tradeaccord 
due to be ratified in Marrakesh thB iapiilh, Page 3 

Air France series backing tromistaff: Air . ; 

France chairman Cforistian Blanc la to seek the 
support of the company's 40,000 staff in an attempt 
to push through a recovery plan. Page 2 . r . 

North Korea rejects UN crib Norfli Korea 
rejected a caD from the United Nations Security 
Council to accept international nuclear inspections, 
saying the issue could wily be resolved through 
fired negotiations with the US. Page 4 

Renault, French state-owned vehicle group, 
suffered a sharp foil in. profits last year to FFrLOTbn 
($l86m) from FFr5-68bn because of contraction 
in the European car market Page 13 

MetaUgeveQschafb Shareholders approved 
the second 'phase of a rescue package for the 

beleagumed German metals group after a stormy 

annual meeting which focused mainly on alleged 
shortcomings of the supervisory board. 

Page 13 

Deutsche Bank expands foreign business: 

Deutsche Bank’s expanding foreign business 
and sharp growth In. returns from trading on 
its own account were the main contributors to 
its 23 percent increase in net earnings last year 
of DM£3bn (jh-Sbii). Page Lex, Page 26 

Tunned services delayed: The Channel tunnel 
will not be fully opened for passenger frainsjmal 
at least September, four months after the official 
opening an May 6. Page 6 
Redland pests £279m: Pre-tax proffteof 

Imildinginaterial groups Redland JumpMby 

40 per cent year to J279m ($407m). Page 
Lex, Page 26 

48% of workers anxious about jobs: 

Forty-six per cant of fulktoe and parWime iwwkers 
in the UK are concerned about losing their jo te 

months, the latest MORUIBS survey 
[or the Financial Times shows. Pago 6 
a^mfMhMVDHd sailors set records Sailors 
Zealand ai«I Bittito 
jSSston of the UK set a non-stop romd-ttewjrW 


Today's cwMant Today’s prize crossword 
appears bn Page 13 of the first swfiem. 

. . nnf hn oubllsbed 


• "O- 

The Financial Times will not be published 
on Monday Aprils 


Fur customer senrtce and 
other general enquiries calls 

Frankfurt 
(69) 15685150 


By Jurefc Martin in Washington 


The US economy looks set for a 
period of strong expansion after a 
range of economic statistics yes- 
terday all pointed to a robust 
recovery. 

But the prospects of further 
strong growth also increased the 
probability of a further increase 
m shortterm interest rates. 

The most eye-catching statistic 
was that non- farm employment 
in March jumped by 456,000, for 
in excess of market expectations 
and the largest single monthly 
increase since the Wall Street col- 
lapse of October 1987. 

The New York equity markets 


*M^.Wrfc- 


were closed yesterday for Good 
Friday, but prices of longdated 
bonds sank. The benchmark 30- 
year Treasury bond fell more 
than 1% points, sending the yield 
up to 7.26 per cent, although trad- 
ing was- light. One trader 
described the market reaction as 
“swift, violent and unforgiving". 

On Thursday, the Dow Jones 
Industrial Average rallied 
towards the close to finish up 
9.21 points at 3,635.96, having 
fallen 67 points earlier in the day. 
But most broader market mea- 
surements were down, and the 
Dow ended the shortened week 
off 138.77 points. 

The market slide, which has 


cut share prices by about 9 per 
cent in two months, was enough 
to persuade President Bill Clin- 
ton, on holiday in California, to 
state that “corrections” in the 
market were normal and to warn 
against “skittishness”. Economic 
fundamentals were sufficiently 
sound that comparisons with 
1987 were invalid, be said. 

Other economic indicators pub- 
lished yesterday, both for Febru- 
ary. showed personal income up 
L3 per cent, reversing the decline 
of 03 per cent in January, and 
personal spending up 1 per cent, 
after an increase of only 0.1 per 
cent the previous month. 

Final revised gross domestic 


product figures for the last quar- 
ter of 1993, released on Thursday, 
showed real annual growth at 7 
per cent, down from the earlier 
estimate of 75 per cent, but still 
the strongest three months since 
the first quarter of 1984. 

Ms Laura Tyson, head of the 
president's council of economic 
advisers, said there was no rea- 
son yet to change two of the 
administration's annual forecasts 
- of 3 per cent real growth and 
2m new jobs. She said there was 
“an upside risk on both num- 
bers”, though higher interest 
rates might have a damping 
effect 

Reaction to the data by eco- 


nomic analysts was uniform. 
Merrill Lynch said first-quarter 
real growth “may be closer to 4 
per cent than 3.5 per cent”, its 
previous prediction. S G Warburg 
said it “may equal or exceed 4 
per cent" All noted no evidence 
rising inflationary pressures. 

Ms Katherine Abraham, com- 
missioner of the Bureau of Labor 
Statistics, told Congress that 
more than half the growth in 
employment in March reflected a 
rebound from the weather-rav- 
aged previous two months, exac- 
erbated by the Los Angeles earth- 
quake in January. 

However, the jobless rate 
remained unchanged at 6.5 per 


cent The bureau explained that 
whereas a reduction of 100,000 in 
the official unemployment rolls 
could produce a 0.1 percentage 
point drop in the unemployment 
rate, it could take as many as 

700.000 new jobs to produce the 
same result because most open- 
ings went to those not registered 
in the labour force. 

In fact, hi March 349,000 of tiro 

456.000 new jobs were part time. 
Manufacturing employment only 
rose by 12JJ00. 

Editorial Comment, Page 10 
Currencies, Page 15 
Lex, Page 26 
Weekend, Page H 


London 


Paris 

' CAC-40 index ' 
— 2,160 — : 


'■’Ow^Jtortaafiiilua. AW» Ff-SE 100 feutex ' CAC-> 

— 2,160 ■ 
2,1401 

• — Lip 2,120 

^ — .smbo — — * 2 - 10Q ' 


Frankfurt 

DAX index 

— 2,170 — 


Rome 


Hong Kong - Tokyo 


2,140 2.160 j 


V — - 2.150 


~\ 2,140-1- 



Cotntt index Hang Seng tadax 

730- estimated^ 9,500——“-* — *■■ 

700, /-. 9.300 M- 


. -Vaa Mar«4 31- 

■-39Un^fT&aphft» 


28 Mar*94 9i 


25 Mar'S* 31 


25 Mar*94 31 


670-/— 

' 800' 

25 Mw*94 1 


9^00-^- 
9,100 — 


Nikkei 22B Awe fOOty 

20.0—- 


19 A — 

— T9_2 -A/- 


All-seater target 
for football clubs 
may be dropped 


25 MaPri 31 


26 Mar*84 1 


Berlusconi intensifies efforts 
to form coalition government 


By Robert Graham in Rome 

Ttniisn media magnate Mr Silvio 
Beriusconi intensified his efforts 
yesterday 1 to persuade the popu- 
list Northern League to form part 
of the country’s next govern-' 
meat. 

The reservations of the League 
and ite leader, Mr Umberto Bossi, 
are the main hurdle facing Mr 
Berlusconi in putting together a 
government after this week's 
landslide victory by the right- 
wing Freedom Alliance. 

Mr Beriusconi has already 
received brood backing from the 
neo-fascist MSI/National A1U- 
anca The MSI, together with Mr 
Berlusconi’s Forea Italia move- 
ment and the League, fought the 
elections under the banner of the 
Freedom Alliance, even though 
their electoral platforms were 
separate and often divergent 

Yesterday, Mr Berlusconi held 


Boss! sets out his store for 

Beriusconi Page 2 

A prims donna’s great 
performance M Wkd FT, Page I 
World stocks.^ — Page 23 

his second meeting in three days 
with League representatives. It 
was convened against the back- 
ground of statements by Mr Boss! 
damping hopes of an agreement 
Mr Boss! himself declined to 
attend and delegated his closest 
aide, Mr Roberto Marozzi, to con- 
duct the negotiations. 

Afterwards, Mr Berlusconi 
refused to be drawn on toe talks 
and said he was operating to no 
precise timetable. However, he 
has let it be known that he is 
anxious to put together a govern- 
ment based round his four- 
month-old Forza Italia move- 
ment, the League and the MSL 


headed by Mr Gianfranco FinL 
Mr Maroni said: “We will be able 
to put together a government and 
it will be a strong one.” His 
remarks confirmed the impres- 
sion that the League is bargain- 
iaz kurd to ensure that if it 
enters government, the party 
does dm become submerged by 
Mr Berlusconi and Forza Italia. 

In the election Forza Italia took 
votes from the League in the 
north, but it helped the League 
nationally to gain 118 seats in the 
chamber by lacking it during the 
campaign- 

The prospect of forming a gov- 
ernment with a clear parliamen- 
tary majority - despite serious 
divisions within the Freedom 
Alliance - has prompted heavy 
buying of stocks an tiro Milan 
bourse this week and a strength- 
ening of the lira against the 
D-mark. 

The lira was yesterday being 


traded at L960 against the 
D-mark compared with, over L980 
in the run-up to the elections. 
The lira has long been considered 
under-valued, and the market has 
been waiting to see the outcome 
of the elections. The currency 
has also firmed because of tenta- 
tive signs that the recession has 
bottomed and a recovery, albeit 
timid, is on the way. 

The fina n ci a l markets added to 
gains made on Thursday as trad- 
ers predicted that a government 
could soon be formed. They 
appeared to shrug off events yes- 
terday. 

“It is all part of the negotiating 
game. Of course, they are going 
to sell their support for the high- 
est price they can," said one 
Milan broker. Shares on the 
Milan stock exchange added to 
recent gains, with a 1.6 per cent 
rise yesterday, taking the BCI 
index to a close of 735.11. 


By David Owen 

Ministers may drop the 
requirement for Britain's leading 
football dubs to have all-seater 
stadiums by August in a move 
that could mean a reprieve for 
terrace culture. 

They are considering whether 
to extend this summer's deadline 
- which in England indudes Pre- 
miership and First Division 
clubs - on a case-by-case basis, 
and whether to combine this 
with a change in the law to 
remove the all-seater require- 
ment. 

This wonld be as part of a 
reform of the three acts govern- 
ing sports grounds, which minis- 
ters would like to sec rational- 
ised into one as part of the 
government’s wider deregulation 
initiative. 

tf the proposed reform makes 
it on to the 1994-95 legislative 
timetable, as the Department of 
National Heritage is understood 
to have requested, this could 
mean a permanent reprieve for 
some terraces - with their tradi- 
tion of songs and chants and 
cheaper admission prices. 

Although several clubs are 
struggling to meet the August 
deadline, such a reversal of pol- 
icy would probably be viewed 
dimly by those that have already 
Spent heavily to upgrade their 


grounds as required. 

The apparent softening of the 
government’s stance stems from 
two main factors: 

• a growing feeling that the 
Taylor report into the 1969 Hills- 
borough disaster, which led to 
the all-seater requirement, took 
an understandably but unneces- 
sarily rigid line. Some 95 fans 
were crushed to death on the ter- 
races at the Sheffield football 
ground. 

• Improvements in ground 
safety technology. Mr Iain 
Sproat, national heritage minis- 
ter, is understood to have been 
impressed by a system that mon- 
itors pressure around a stadium. 

Mr Tom Pendry, a Labour 
national heritage spokesman, 
recently referred to this system, 
saying: “I firmly believe that, in 
the light of new developments, 
supporters should be given the 
opportunity to stand In new, 
safer areas.” 

Barnsley will be applying for 
an extension to the August dead- 
line, according to Mr Michael 
Spinks, general manager. 

The clab recently received 
planning consent for a 4,500-sea- 
ter stand that would lift its seat- 
ing capacfty to more than 14,000. 
But this will not be open until 
1995 at the earliest 

Rebates for sports clubs. Page 9 


Rail companies may have to 
honour most tickets of rivals 


By Charles Batchelor, 

Transport Correspondent 

A potentially significant barrier 
to the smooth operation of ticket 
sales on Britain’s newly-priva- 
tised railways could be lifted 
under proposals being considered 
by the raffway franchising direc- 
tor, Mr Roger Salmon. 

One option being studied 
would oblige the private train-op- 


erating companies which take 
over British Rail franchises to 
accept most of the tickets issued 
by other train companies. 

Under the original rules gov- 
erning rail privatisation, the new 
train operators would have only 
had to accept other full-fare and 
season tickets. These would 
account for just 20 per cent of all 
tickets issued. 

Many travellers could have 


End of BR as we know it 



Nearly half a centmy of 
centralised railway operations 
ended yesterday when British 
Safi handed control of its net- 
work to a host of newly-reeaied 
businesses, writes Charles Bat- 
chelor. 

Responsibility for nearly 
10,000 miles of track and 2^00 
stations has beat given to Rail- 
tradfe, while more than 50 inde- 
pendent businesses have started 
taking over passenger and 
freight train operations, railway 
maintenance and rolling stock 
finance. 

BR wDl continue in a much 
stimmed-down form easing busi- 
nesses still nominally under its 
control into the private sector 
before finally closing. 

In the early stages the privafi- 


pewK!. 



sation will lead to a doubling of 
subsidies, though these are 
expected to foil in later years. 

The government foresees pres- 
sure mi its finances falling even- 
tually. The public fears higher 
fores and arts in services. 

’Train set? costs 00m, Page 8 


CONTENTS 


been forced to buy more than erne 
ticket if their journeys involved 
services operated by more than 
one train company. 

On routes with, services pro- 
vided by competing companies, 
travellers might not have been 
able to use the roost convenient 
onward or return train. 

The ‘interavailability" of tick- 
ets threatened to become a signif- 
icant barrier to the smooth opera- 
tion of the network after 
privatisation. 

But Mr Salmon, who has 
responsibility for selling off BR's 
operations, is now considering 
ways of increasing interavafl abil- 
ity. One wonld be to make rail 
companies accept each other’s 
tickets for most journeys. 

This would avert possible dis- 
ruption to travellers if tickets 
were not accepted across the new 
network. Mr Salmon has faced 
complaints Grom passenger 
groups concerned about inconve- 
nience to 'travellers. 

He wants train operators to 
accept most of each other’s tick- 
ets. However, they could opt out 
if they moved that by not accept- 
ing the tickets of a rival, competi- 
tion would be increased and tiro 
traveller would get a bettor deal 

Mr Salmon is understood to 

Contained on Page 26 



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lood No 32JSS2 Week No 13 LONDON - PARIS - FRANKFURT - NEW YORK ■ TOKYO 

© THE FINANCIAL TIMfESUIVU — — — ' 









FINANCIAL TIMES WEEKEND APRlLj/AJPRlLjJgW 


NEWS: INTERNATIONAL 


Bossi sets out his store for Berlusconi 


By Robert Graham 
in Rome 

Mr Umberto Bossi, the fiery 
leader of the populist Northern 
League, has begun a high 

stakes game of bluff nnr| threat 

to wring out the maximum 
amount of concessions for join- 
ing the next Italian govern* 
ment. 

This means that over the 
next few days there were will 
be some confusing and belliger- 
ent noises coming from the 
Bossi camp as media magnate 
Silvio Berlusconi tries to ham- 
mer out a consensus on a gov- 
ernment programme. 

However, Mr Bossi appears 
to have accepted the principle 
that the League be part of the 
government in the wake of the 
overwhelming election victory 
by the right-wing Freedom 
Alliance. 

He also appears to have 
dropped his resistance - again 
in principle - to the presence 
in government of members of 
the neo-fascist MSI/National 
Alliance of Mr Gianfranco Finl, 
the third main component of 
the Freedom Alliance. 

Thus the discussions now 
taking place are over the 
nature of the government pro- 
gramme and the role the 


Northern League leader begins his campaign for concessions 


League should play in govern- 
ment. 

Yesterday Mr Berlusconi met 
for the second time in throe 
days with League representa- 
tives. Whereas Mr Bossi was 
present at the first encounter, 
yesterday he deliberately dele- 
gated his most trusted aide, Mr 
Roberto Marone. to meet Mr 
Berlusconi, and so distanced 
himself from the negotiations. 

"We will put together a gov- 
ernment and it will be a strong 
one," Mr Marone said after- 
wards. But neither he nor a 
statement from Mr Berlus- 
coni's Forza Italia movement 
gave an; idea whether their 
differences were being nar- 
rowed. 

Mr Berlusconi himself yes- 
terday refused to be tied to a 
timetable for forming the gov- 
ernment. "Parliament reassem- 
bles on April 15. But this is not 
necessarily the date for the for- 
mation of the government," he 
said. 

In the past Mr Bossi and Mr 
Marone have proved a highly 
effective duet Mr Bossi makes 
the tough uncompromising 
public statements: in private 



Posters are up in Italy thanking voters for hacking media magnate Silvio Berlnsconi in elections 


Mr Marone softens them and 
acts as the go-between. They 
are likely to repeat this tactic 
now with Mr Bossi threatening 
not to join the government and 


Mr Marone then making light 
of such threats. 

It is also a way of Mr Bossi 
trying to impose bia demand 
that Mr Marone be the next 


prime minister, instead of Mr 
Berlusconi Mr Bossi argues 
that with 118 seats In the 
Chamber of Deputies compared 
with the MSTs 105 and Forza 


Italia’s 101, the premia: should 

come from the largest repre- 
sented party. 

Having bad-mouthed his 
allies and associates In the 
Freedom Alliance throughout 
the election, it was too much to 
expect the voluble League 
leader to soften his language 
immediately. He also has to 
plwrate imwwp among his r ank 
and file over doing a deal with 
the MSL Nevertheless, Mr Bos- 
ses tone and emphasis has 
changed. 

Instead of attacking the MSI 
as being “reartionary fascists,” 
he Is insisting the next govern- 
ment be built round accep- 
tance of a new federalist 
approach to Italy's constitu- 
tion. This has long been a 
League platform and a major 
point of rtifijBMMMB with the 
MSI which believes in the 
opposite - a strong centralised 
state. 

Mr Berlusconi stands some- 
where near the middle in this 
argument A northerner, he 
understands the frustrations of 
the League at seeing the hard- 
working north underwriting 
the inefficiency and waste of 


Home and the south. His free- 
market instincts also attract 
him to the Idea of greater 
administrative and fiscal devo- 
lution in Italy, the most 
centralised state In the 
EU. 

• One way round the impasse 
between! file federalist League 
and the centralist MSI Is an 
agreement to Introduce direct 
elections for the president of 
the republic, giving the presi- 
dency. almost French-style 
powers. ■ ' " 

Only when these issues are 
resolved win the parties move 
on to finding common ground 
on measures to deal with the 
economy, another key area of 
potential disagreement The 
economic programmes of the 
three parties, hurriedly put 
together prior to the elections, 
have few. points in common. . 

'Although the Italian media 
have been full of lists of poten- 
tial ministers during the past 
few days, Mr Berlusconi yester- 
day insisted no appointments 
had been' decided. Mr Berlus- 
coni Is determined to cut the 
number of ministries by up to 
one third and is co nsidering 
carrying out the much-studied 
amalgamation of the Treasury 
with the budget and finance 
ministries. 


Air France to Balladur’s rocky road to the Elysee 

canvass support The PM’s presidential hopes have been undermined, writes David Buchan 

from workers 


By John Rkkfing in Paris 

Mr Christian Blanc, chairman 
of Air France, is to seek a vote 
of support from the company's 
40,000 staff in an attempt to 
push through a recovery plan 
which he says is vital for the 
airline's survival. 

Mr Blanc's decision to 
launch a referendum on his 
recovery package follows his 
failure to win the backing of 
trade unions for the plan. By 
Thursday's deadline, only six 
of the airline's 14 unions had 
signed the restructuring pro- 
gramme, which aims to 
increase productivity by 30 per 
cent over the next three years 
through 5.000 job cuts, a wage 
freeze and promotions, and 
other efficiency measures. 

Mr Blanc, who has threat- 
ened to resign if the plan is 
rejected, called for a "clear and 
massive" response to help save 
the state-owned carrier, which 
suffered au estimated loss of 
FPr7.5bn (£S60ra) last year and 
has debts of almost FFr40bn. A 
capital Injection of FFrtObn 
from the state is conditional on 
staff support for the plan. 

Results of the referendum 
will be announced on April 11. 

Mr Blanc's chances of suc- 
cess in the poll have been 
boosted by the support of 


Force Ouvrldre. the largest of 
the airline's unions, which 
played a key role in the wave 
of strikes which scuppered a 
previous rescue plan last Octo- 
ber. 

The failure of the plan 
prompted the resignation of Mr 
Bernard Attali, then chairman 
of the airline, and represented 
a serious setback for Prime 
Minister Edouard Balladur’s 
centre-right government. 

Force Ouvrfere said a ballot 
of its members had resulted in 
90 per cent support For the 
restructuring package. 

The second and third largest 
unions at Air France, however, 
refused to accept the restruct- 
uring package. Mr Raymond 
Besco. general secretary of the 
communist Confederation Gen- 
eration du Travail, said the ref- 
erendum "does not respond to 
the fundamental problems of 
the airline”. He said, however, 
that the union was not advis- 
ing members how to vote. 

the Confederation Franchise 
Dtfmocrattque du Travail, the 
third largest union, also 
rejected the plan. “The mea- 
sures represent, in a different 
form, those which were mas- 
sively rejected during the con- 
flict last October." said Mr 
Francois Cabrfra. a union offi- 
cial. 


P rime Minister Edouard 
Balladur’s latest climb- 
down. over youth wage 
cuts, has triggered a period of 
political instability that will 
probably last until next May’s 
presidential election. 

Supporters of Mr Jacques 
Chirac. Mr Balladur’s rival for 
the Elysee. now smell blood. 
The triumphant students and 
the revived left-wing opposi- 
tion have been crowing their 
victory over the prime minis- 
ter. but more dangerous have 
been the calls for ministerial 
resignations coming from 
within the RPR Gaullist party 
to which Mr Balladur belongs, 
but which Mr Chirac heads. 

Most of the fire is directed at 
Mr Michel GIraud, the labour 
minister, who only a few days 
ago was claiming the govern- 
ment would stand as solidly in 
defence of its youth wage law 
as the French army did against 
the Germans at Verdun. But as 
the "Cbiraquiens” know well, 
Mr Giraud's successive tergi- 
versations on employment pol- 
icy are also those of his prime 
minister, and therefore the lat- 
ter cannot decently sacrifice 
him without jeopardising fur- 
ther his own credibility. 

In terms of social unrest, the 
worst may be past for Mr Bal- 
ladur. 

Calm may now return to the 
streets, though this is not cer- 
tain if Air France staff take a 
page out of the students' exer- 
cise book and reject the gov- 


ernment-supported restructur- 
ing for the ailing airline. As far 
as the economy is concerned, 
the worst is probably past too. 

Economic activity is continu- 
ing its very slow, but progres- 
sive. recovery from last year’s 
trough. But the sight of a 
dejected Mr Balladur marking 
his first anniversary at the 
Matignon with a humiliating 
retreat has reinforced the feel- 
ing of many in the RPR party 
machine that they should stick 
with their founder-president. 


on public sector redundancies. 

But on educational and 
labour reform, he has hit noth- 
ing but trouble, even though 
some reform is long overdue; 
parts of the employment law. 
which was passed last autumn 
but which has taken such a 
battering since, are designed to 
overhaul labour legislation dat- 
ing back to the Popular Front 
in 1936-7. 

The upshot has been to rein- 
force Mr Balladur’s natural 
caution, with the inevitable 


order to fit France for the 
future disciplines of European 
monetary imtnn. This ta sk is 
rendered mare difficult by his 
decision, with an eye to run- 
ning in 1995 on a strong 
defence platform, to raise 
slightly military equipment 
spending. 

Where is his political “hush 0 
money to come from? Privati- 
sation is the obvious, but not 
inexhaustible, source now that 
Mr Balladur has postponed the 
«alp of Renault 


His forays indicate persistent interest in 
the ultimate prize in French politics 


Mr Chirac, for 1995. 

So, whatever happened to Mr 
Balladur, the self-styled 
reformer riding so high in the 
polls? In a document designed 
to vaunt the achievements of 
his first year, the prime minis- 
ter himself Identities his three 
problems. 

• "Public opinion which both 
desires and recoils from 
reform.” Mr Balladur had little 
problem with some reforms, 
notably giving the Bank of 
France independence in setting 
monetary policy and in launch- 
ing his privatisation pro- 
gramme, though he has made 
the task of preparing more 
state companies for sale harder 
this week by extending until 
the end of the year his freeze 


result that the pace of reform 
will be slowed tn endless con- 
sultations. 

• "The economic situation, 
even if It improves, deprives us 
of the necessary budgetary and 
social room for manoeuvre.” 
Latterly, Mr Balladur has 
seemed to be paying scant 
attention to his budgetary con- 
straint as he has successively 
bought off French farmers, 
state school teachers, fisher- 
men, and now - in a manner of 
speaking - students. His 
FFrL<X»-FFr2,000 <£117-£235) a 
month subsidy to employers 
giving young people their first 
job may cost FFrtbn this year. 

At the same time Mr Balla- 
dur has pledged to rein in 
steadily public spending in 


Mr Balladur is known to be 
frustrated at the Bank of 
France's cautious policy on 
interest rates, and must there- 
fore have been pleased when 
the central bank on Thursday 
sliced another Off point off its 
intervention rate to bring it 
down to 5.9 per cent Though 
he would never say so publicly, 
he is almost certainly in agree- 
ment with the Organisation for 
Economic Co-operation and 
Development's recent call for 
French rates to come down fur- 
ther and fester. 

• “The presidential election 
campaign is weighing too early 
on people's minds.” Mr Balla- 
dur could, of course, deal with 
this problem simply by 

nnnnnnring that be is QOt a 


candidate for the ElysSe, leav- 
ing the pundits only the minor 
pleasure of speculating about 
which Socialist candidate 
(probably Mr Michel Rocard) 
gets to be beaten by Mr 
Chirac. 

No one who saw Mr Balladur 
look so demoralised this week 
would rule such an announce- 
ment out. But next week he is 
visiting China. 

All his forays, unusual for a 
French prime minister, into 
foreign and defence policy indi- 
cate his persistent interest in 
the ultimate prize in French 
politics. 

No one knows how the Balla- 
dur-Chirac rivalry will play 
out. In the probable absence of 
any clean-cut mechanism like 
a US-style primary election 
taking place in France. One 
theory has it that only by clim- 
bing back in the opinion polls 
to where he was last year - 
which now seems improbable - 
can Mr Balladur displace Mr 
Chirac’s natural hold over the 
RPR. 

But Mr Balladur has one ace 
- the centre-right DDF party 
among which he is more popu- 
lar than nmnng his own Gaull- 
ist ranks. If the UDF were all 
to tell the RPR that the French 
right must field a single candi- 
date, so as to avoid past divi- 
sions, and tha t that candidate 
must be Mr Balladur, this 
prime minister might still 
recover to go on to higher 
things nPTt year. 


German 
interest 
rate cuts 
urged 

By Christopher Paritee 

In Frankfurt 


The German economy Is so 
weak that further interest rate 
cuts are essential, and the gov- 
ernment must also act to 
encourage job creation and 
prevent farther contraction In 
domestic demand, a top Deut- 
sche Bank executive has 
warned. 

The Bundesbank, the central 
bank, need have no fear of 
prompting a rise in the US dol- 
lar and thus fuelling imported 
inflation, Mr Ulrich Cartellieri 
told the bank's press 

conference. 

Nor need it worry about dis- 
turbing European exchange 
rates to the disadvantage of 
German exporters. 

Mr Cartellieri, the main 
board director responsible for 
foreign exchange and the eco- 
nomics department at Ger- 
many's biggest private sector 
bank, said the weakening dol- 
lar was virtually an “invita- 
tion” to rate cots. 

Every German rate reduc- 
tion would be folly followed 
by European neighbours, he 
added. 

Other conditions were also 
favourable. Inflation was fell- 
ing, and the recent annual pay 
round had resulted in the low- 
est wage increases since intro- 
duction of the D-Mark in 1948. 

Meanwhile, the economy 
remained weak. Unemploy- 
ment would increase by 
around 500,000 to 4.5m this 
year. Exports might Increase 5 
per cent, hot that would not 
compensate for last year's 10 
per cent drop. 

Nor was there any chance of 
internal improvements. Mr 
Cartellieri claimed. Private 
consumption would fall at 
least 1 per cent this year and 
drop again In 1995 on the 
Introduction of a 7.5 per cent 
income tax surcharge and new 
musing care insurance contri- 
butions. 

Stating his case against a 
background of rising optimism 
In industry, he said false con- 
clusions should not be drawn 
from the apparent improve- 
ment in company profits. 

This was due to reduced one- 
off costs for restructuring 
rather than a real upswing, he 
claimed. 

No-one should count on 
increased Investment. "Even 
stagnation at last year's 
extremely low level could be 
counted as a success in 1994.” 

Expectations of I per cent 
economic growth in western 
Germany this year were based 
entirely on Improved exports 
and special factors prompting 
a boom in house building. 

- Government forecasts of 1.5 
per cent pan-German growth 
were based on “rather optimis- 
tic” assumptions, he said. 
Results, Page 13 


Belgian push 
to sweeten 
chocolate sales 

Gillian Tett on how hopes 
are being pinned on exports 


O ne company is so secre- 
tive that it refuses to 
reveal how many East- 
er-eggs. it makes. Another 
recently sent out spies to test 
the quality or a competitors' 
truffles. A third is quietly plot- 
ting to usurp a rival's royal 
MKlI. 

As Europe prepares to 
embark on its annual Easter- 
egg binge, Belgium's luxury 
chocolate sector is bubbling 
with some serious business 
battles. 

Faced with a domestic mar- 
ket that vs almost saturated, 
after a decade in which total 
domestic chocolate production 
has more than doubled to some 
tonnes, its luxury choc- 
olate makers are now gearing 
up for an export drive. 

It is a battle, however, that Is 
provoking sou! searching, pur- 
lieu hr ly among the small - 
anti highly secretive - band of 
traditional chocolate makers, 
who have been the source of 
Belgian's luxury chocolate 
fame. 

Although most recognise 
tliat their best hop.? of expan- 
sion will be through export, 
some fear this could eventually 
eisst them their independence. 

“It is n difficult situation. Wc 
wan! to export. But tf we lose 
the quality we arc in danger of 
losing our name.”’ explains Mrs 
Miriam Wittatner, a third gen- 
eration traditional chocolate 
shop owner - a business whore 
white-robed workers still dip 
chocolate rabbit moulds by 


hand before filling them with 
pralines made to a closely 
guarded recipe. 

Their fears have been fuelled 
by change. Belgium's largest 
mass market chocolate pro- 
ducer. Cote D'Or, has been gob- 
bled up by the Swiss company 
Jacobs Sue hard, and Godiva - 
Neuhaus's main rival tn the 
mass-produced luxury market 
- is now part of the US group 
Cambells' Soup. 

These changes liave spurred 
tbe luxury end of the market 
into action. Godiva, which 
started as a family business in 
1927. now splits its production 
between the US and Belgium 
and records a turnover of 
about BFrlbn tsism) a year, 
with more than 50 per cent of 
its sales now export-driven. 

"Export is where the main 
growth is now. The Belgians 
already oat a lot of chocolate - 
it's hard to get them to cat any 
more,” says Mr David John- 
ston. European manager of 
Codiva. Although Belgian 
chocolate has enjoyed a higher 
prominence in the 
Anglo-Saxon world - exempli- 
fied by Haageh-Daaz’s recent 
decision to use its name in the 
luxury ice-cream brand - the 
main challenge now, he says, 
is boosting recognition among 
German and French consum- 
ers. 

Ncuhnus. the oldest choco- 
late house and one of the few 
large ones still entirely Bel- 
gian-owned. saw its profits rise 
by 10 per cent last year, to 



Hoot for growth: luxury chocolate makers are looking abroad 


reach a turnover of BFrLlim. 
after a period of stagnation in 
tho 1980s. It has recently 
opened 120 foreign outlets and 
conducts 30 per cent of its busi- 
ness outside Belgium. 

Meanwhile, the secretive 
Leonidas group, which is con- 
trolled by a Greek Family, is 
estimated to have a turnover of 
about $30m (£5S.9m), control- 
ling half the luxury “praline" 
chocolate market in Belgium 
with a network of some 1,600 
independent overseas distribu- 
tors. 

But most or the tiny, tradi- 
tional chocolate makers, who 
continue to produce the most 
exclusive Belgium chocolates, 
are still struggling to find their 


own export networks, ham- 
pered by their small levels of 
production and problems of 
distributing a product whose 
sheif-Iife is rarely longer than a 
few weeks. 

Some believe their best hope 
would be through the duty free 
or mail order business. Mean- 
while, others admit they have 
already had bigger players 
sniffing at their doors. 

“There is a danger that some 
artisans could be taken over,” 
explains Mrs Samte Lamberty, 
owner of Mary, a traditional 
Brussels chocolate maker, who 
enjoys the coveted right to sup- 
ply tn the Belgian royal court 
“But the fact is we do not want 
that at alL” 


Russia aims to clear $900m arrears with innovative package 


Hungary wary of debt swap deal 


By Nicholas Denton 
in Budapest 

Moscow yesterday agreed to 
offer stakes in Russian ven- 
tures as part of an innovative 
settlement of the country’s 
$900m (£6l6.4m) trade debt 
with Hungary, the former 
Soviet satellite. 

In Budapest this week a Rus- 
sian delegation, fed by Prime 
Minister Victor Chernomyrdin, 
presented a list of 80 privatisa- 
tion projects in which Hungar- 
ian participation was invited. 

Mr Bela Radar, Hungarian 
minister of international eco- 
nomic relations, said Hungar- 
ian companies were pressing 
for shareholdings in the Rus- 
sian energy, vehicle manufac- 
turing and pharmaceutical sec- 
tors. 


The minister calculated that 
Hungary’s proposals Implied a 
debt-for^eqitity deal worth up 
to $500m but cautioned: “We 
have to harmonise Hungarian 
demand and Russian supply." 

Budapest will be aware of 
the limited success so far of 
debt-for-equity swaps with Rus- 
sia. Skoda Plsen, the Czech 
engineering company, last year 
pressed for shareholdings in 
Russian rolling stock compa- 
nies in exchange for trade 
debt, without success. 

Nevertheless Hungary said It 
had little choice. A Foreign 
Ministry spokesman said: “if 
there is this debt, we have to 
use it" 

The Russian deal with Hun- 
gary Is the mirror image of the 
situation In tbe former Soviet 
Union, where Russia is the 


creditor, attempting to retrieve 
debts from other former Soviet 
republics. 

Russia last month poshed for 
ownership in Ukrainian under- 
ground gas storage tanks and 
gas transit pipelines as part of 
a debt settlement with Kiev. In 
the former Soviet Union, Rus- 
sian demands for equity in the 
energy industry are also seen 
as an effort to regain economic 
influence. 

To pay off the remainder of 
the arrears to Hungary by the 
agreed deadline of 1996, Rus- 
sian enterprises may also 
assist in the construction of 
Budapest's fourth metro line as 
well as supplying military 
equipment 

Any arms sates would be in 
addition to the deal last year 
whereby Hungary acquired 28 


Mig-29 fighter aircraft, spare 
parts and ammunition worth 
$800m from Russia. 

When east European coun- 
tries closed the books on their 
trade under the old Comecon 
system in 1992, Russia carried 
over a debt of $L7bn with Hun- 
gary. Nearly half of that out- 
standing balance was cleared 
last year and yesterday's agree- 
ment settled the remainder, at 
feast in principle. 

Claims carried over from the 
previous trading system have 
proved a constant factor, and 
often Irritant, in relations 
between Moscow and the for- 
mer Soviet satellites. 

Russia paid off some of Its 
debt to Slovakia last year by 
delivering five Mig-29 aircraft 
Moscow and the Czech Repub- 
lic have not come to terms. 


Stronger growth forecast 
for Netherlands economy 


By Ronald van de Krol 
in Amsterdam 

The Dutch economy is poised 
to enjoy substantially stronger 
growth in 1995, putting two 
years of more sluggish perfor- 
mance behind it, according to 
new official forecasts. 

The Central Planning 
Bureau, a government-run 
agency which produces inde- 
pendent economic assess- 
ments, said that gross domestic 
product should rise to 2.5 per 
cent next year from a projected 
1.0 per cent this year and 0.3 
per cent in 1993. 

But, in a cautionary note, it 
said the increase would be due 
mainly to higher exports, with 
domestic consumption expec- 


ted to remain relatively weak. 

Inflation, which was virtu- 
ally non-existent in the Nether- 
lands In the late 1960s. Is fore- 
cast to pick up slightly, 
reaching 2.75 per cent this year 
and next year compared with 
2.6 per cent last year. 

However, In spite of the 
stronger performance of the 
economy as a whole, unem- 
ployment is expected to con- 
tinue rising , with the number 
of jobless people forecast to 
rise to 630,000 in 1995 compared 
with 550900 last year. 

The upturn tn the Nether- 
lands is likely to be part of a 
wider upward trend in Europe, 

the CPB said in its annual, 
spring report. “The lowest 
point of the recession in 


Europe has been passed, tn our 
opinion,” Mr Gerrti Zalm, the 
CPB’s director. said. 

Dutch exports, excluding 
energy products, are projected 
to recover from their 0.1 per 
cent dip-in 1993 to increase by 
3.75 per cent in 1994 and then 
rise to 5.75 per cent in 1995, 
reflecting expectations of more 
buoyant world trade. The 
Netherlands generates around 
half of tts gross national prod- 
uct through the export of 
goods and services. 

Tbe Dutch economy which 
has traditionally been tied to 
that of Germany, its biggest 
trading partner, has avoided 
the recession that has plagued 
its eastern neighbour in the 
early 1990s. 


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NEWS: INTERNATIONAL 


INTERNATIONAL news digest 


Greek lobby 
slows US plans 
on Macedonia 

_The inf lue ntial Greek lobby in the US appears to have had 
soffie success in slowing down the Clinton administration’s 
announced plan to proceed to toll diplomatic relations with 
theformer Yugoslav republic of Macedonia. 

While the State Department has continued to Tnsjgfc nn« 
thm an embassy would eventually be established is 
SKopje ioflovpng the decision to recognise Marainnia despite 
Greek objections, it declined substantive comment on an 
apparently well-sourced column by Mr Jim Hoagland in the 
Washington Post. This pointed to a critical White House 
meeting on March 9. which bnwgit together President BUI 
.vnntoii, vice president A1 Gore, and national security adviser 
Tony Lake with a Greak-American delegation, led by Senator 
Paul Sarbanes of Maryland. 

Mr Hoagland quoted a satisfied member of the delegation as 
asserting that Mr Clinton, said he bad already Ab i de d not to 
go ahead and open an embassy until progress was made in the 
Greece-Macedonia dispute. The president’s tMuMng was 
reported to be in accord with that of the Greek, government. 

The State Department, which has been critical of Greece's 
behaviour towards Macedonia, was not represented at the 
meeting; But Mr George Stephanopoulos, the senior adviser 
who is the son of a Greek Orthodox priest, was. Mr HnagiaTirt 
also saw the influential hand of Ms Nancy Soderberg, a mem- 
ber of Mr Lake’s staff, in the president's reported dp c fe hm 
Mr Victor Comras, the diplomat reportedly in line to be 
ambassador to Macedonia, may be despatched, but only as 
head of a diplomatic liaison office. Jarek Martin, Washington 

UN forces may go to Gorazde 

The United Nations is considering the despatch of 800 Ukrai- 
nian peacekeepers to Gorazde, the besieged Moslem enclave in 
eastern Bosnia, a UN official said yesterday. 

The move comes as Serb attacks an Gorazde, a UN-des- 
ignated safe area, have left 30 people dead and 132 wounded 
since Monday; By contrast, Serbian media reported that an 
all-out Moslem offensive was under way as the two sides 
fought pitched battles in the fiercest, clashes since the war 
began in April 1992. UN officials said some of the Serb attacks 
may have been in response to Bosnian government “infantry 
probes" 

' The UN .was also considering the deployment of reinforce- 
ments for. the .French peacekeeping contingent in Bihac, in 
Bosnia's north-western Moslem area, where Serb and Bosnian 
forces yesterday signed' a ceasefire, said a senior UN official. 
The plans far_hblstering the peacekeeping forces in Bosnia 
follows approval by the UN- Security Council on Thursday of 
an extra 3,700 troops and advisers, lama SUber, Belgrade 

Exports to Latin America rise 

For the' first tube . in. 12. years Germany recorded _a trade 
surplus of DMI-Sta (£70001) with Latin America during the 
first nine jnonths.af 1993, helped, by a 56 per cent increase in 
exports .to BraZQ and a 17 per cent drop in imparls. Prospects 
for the . continent improved dramatically with a net capital 
Inflow of about $sohn last year, of which $l7J>bn comprised 
direct foreign investments, according to figures from the 
Iteots<fo^aiBpterikanis<foe:Bapk, a part of Dresdner Bank. 

German exports to Latm America rose by just over £ per 
rent toDMlL2bn while its exports worldwide Ml ahnost 13 
per ce^ We^ prices fra^boffee. coppM* and other commodities 
. caused jtbe shhrp fall in imparts. Plant and machinery made 
up about a third <tf exports to BrazB where a surge of ahnost 5 
per cent in GDP wiped out a traditional German trade deficit 
w£h Latin America. Exports to Colombia and Paraguay also 
rose, while shipments to to Mexico dropped 6 per cent . Michael 
Lindemmn, Frankfurt 

Doyle to quit Irish bank post 

Mr Maurice Doyle, the governor of Ireland's centra] batik, is to 
step down at the end of this month having completed a 
seven-year term of office. The Department of finance said 
yesterday that Mr Doyle was not seeking reappointment for a 
second term, but gave no indication of who might replace him. 
Mr Doyle, 62, has built a reputation of being a strong and 
forthright governor, quick to assert the bank’s independence. 

Mr Doyle had also spent 30 years working in the Department 
of Finance, and was tts top dvQ servant for six years. He has 
been one of the key figures behind Ireland’s “strong punt” 
policy, puiWd by successive governments since the late 
19S05, winch together with sharp cutbacks in government 
borrowing over the same period, has helped bring Ireland's 
inflation rate (L6 per cent In 1993) down to one of the lowest in 
the EU. The next governor wfll oversee the separation of the 
London and Dublin stock exchanges, tentatively scheduled for 
iaterthis year. Tim Cocme, Dublin 

China detains dissident again 

China yesterday detained its most prominent dis s ident for the 
second tone in a month, thus risking further inflaming inter- 
national criticism of its human rights behaviour. Police seized 
Wei Jingsheng, the pro-democracy activist, as he was travel- 
ling by car from the port city of Tianjin to Befpng. He was 
“exiled" to Tianjin last month dining the visit to China of Mr 
Warren Christopher, the US secretary of state. 

Mr Wei, 44, was held for 30 hoars last month on the eve of 
Mr Christopher’s arrival in Beijing before being sent to Tian- 
jin. China’s crackdown on political dissent in the part month, 
including the arrests of more than a dozen activists, has been 
condemned internationally. The arrests coincided with moica- 
tians of growing official nervousness over dissident activity 
and g<gns of industrial unrest. Tony Walker, Beifing 

US-Singapore caning row 

Singapore yesterday expressed regret that the US embassy in 

the country had again questioned the 

in the case of an American teenager ** 


excessive “for a youthful non-violent offender who pleaded 
guilty" after an appeal against the sentence failed an Tunis- 

da jndismjsstog the appeal Chief Justice Yung PmgHow: arid 
that Michael P. Fay. 18, committed acts of va ndalism relent- 
SSwV.Ht pleaded guilty on Marc h a to two 

Coal miners threaten strike 

—a- ' coal miners threatened yesterday to stage an M 
SaSbT^mAnril 13 that could deal a severe blow to the fragile 
SKm*. About 500 miners’ HP» 

sentatives from across the country a dopted a resoluti on 

rfos. Reuter, Moscow 

Japan reactor near critical level 

fast-breedets because v actively pursuing the 

nium, leaving Japan aste °ngco<mOT in 



Hosokawa comes under mounting fire 


By Emiko Terazono in Tokyo 

A group of parliamentarians 
travailed in pouring rain yes- 
terday to the home town of Mr 
Morihiro Hosokawa, the Japa- 
nese prime minister, to inspect 
bis ancient mansion in Kuma- 
moto, southern Japan. 

The opposition Liberal Dem- 
ocratic Party members were 
trying to disprove Mr Hoso- 
kawa’s claim that he used a 
YlOOm (£653,000) loan from the 
Sagawa Kyubin trucking com- 
pany to mend his gate and 
walls. 

They allege the prime minis- 


ter instead used the money to 
secure his candidacy for guber- 
natorial elections in 1983. 

Revelations that Sagawa 
bribed politicians for favours 
helped to bring down the tong- 
ruling LDP last year, enabling 
Mr Hosokawa to take power. 

In the latest offensive. LDP 
an<t communist parliamentar- 
ians are blocking Mr Hoso- 
kawa 's Y73,Q80bn (£477.4bn) 
budget for the business year 
which started yesterday. 

They are refusing to allow 
deliberations on the budget 
until the prime minister brings 
in his former secretary to tes- 


tify before parliament and 
proves that he repaid the loan 
to Sagawa, 

The situation is beginning to 
resemble that of 1989, when Mr 
Noboru Takeshi ta was forced 
to resign as prime minister 
over links with the Recruit 
stocks-for-favours scandal in 
exchange for passage of the 
annual budget bUL 

The wrangling is getting 
more public attention than Mr 
Hosokawa 's handling of trade 
tensions with the US or the 
faltering domestic economy. 

Economic implications of the 
budget boycott are severe. A 


provisional budget for the first 
50 days passed through the 
upper house last night, but 
lack of a full budget jeopard- 
ises planned tax cuts that are 
the centrepiece of Mr Hoso- 
kawa's package aimed at reviv- 
ing the economy. 

Some members of Mr Hoso- 
kawa 's coalition are even sug- 
gesting that the prime minister 
give in to the opposition 
demands, since they believe 
LDP scrutiny can only damage 
his credibility. 

The purchase of 300 Nippon 
Telegraph and Telephone 
shares by the prime minister’s 


father-in-law in 1986 is also 
being questioned by the LDP. 

Mr Hosokawa supplied the 
collateral for loans to buy the 
shares, but he has denied any 
involvement in the purchase. 

While stock purchases by 
politicians are not illegal Mr 
Hosokawa's continued denials, 
in spite of claims by a stock 
consultant that he had 
arranged the deal for the prime 
minister, has made the issue 
an ideal target for the opposi- 
tion parties. 

Some political analysts 
believe that as much as they 
would like to, the LDP does not 


have the clout to force Mr 
Hosokawa to resign. “They can 
only drag him through the 
mud" says Mr Jeff Young, 
political analyst at brokers 
Salomon Brothers in Tokyo. 

But Mr Hosokawa's image as 
a clean politician dedicated to 
reform has been tarnished and 
Ms popular support is declin- 
ing. Until now. his high ratings 
in the opinion polls have pro- 
vided bargaining power and 
helped bolster his political 
position. Already, the prime 
minister’s opponents are tak- 
ing advantage of that dwind- 
ling support 




. ; : 


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Japanese score a victory 
for consumers’ rights 

But there are still doubts about the impact of a planned 
new product liability law, writes Michiyo Nakamoto 


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Biot police check the Asahi Shlzabon braiding in Tokyo yesterday after two 
right-wing extremists armed with, a gun and a Japanese sword burst into the 
newspaper’s offices and took hostages before surrendering to police feu» 


Israel in accord 
on Palestinian 
police for Gaza 


T he legal victory this week of a 
small construction company 
over Matsushita, the electron- 
ics giant, in a unprecedented product 
liability case has raised hopes in 
Japan that consumers have finally 
won their day. The Osaka district 
court ruled Matsushita was responsi- 
ble for a fire that started in a Matsus- 
hita-made television set at the con- 
struction company’s office. 

But in Japan, where corporate 
interests generally prevail over the 
rights of individuals, any celebration 
of consumer victory is tempered with 
caution. “We welcome the ruling but 
are worried it could send the wrong 
message to consumers that the law 
will help them more than will actu- 
ally be the case,” says Ms Yoko Tomi- 
yama, head of the Consumers’ Union. 

The same goes for a new product 
liability bill being drawn up by the 
government and expected to be 
enacted in 1995. The legislation, 
which follows nearly two decades of 
debate, is to give consumer legal pro- 
tection. But it has been undermined 
by pressure by industry and the previ- 
ous government 

The draft bill to be presented to the 
Diet this month has been criticised as 
weak and foil of loopholes. Critics say 
it could be worse than present legisla- 
tion. Currently, consumers have to 
negotiate directly with a manufac- 
turer or launch negligence actions. 

But Mr Hideki Sugiura, a lawyer 
specialising in product liability cases, 


says that in Japan, courts gives peo- 
ple little room for doubt in proving 
they were hurt by a product defect. 
“The Matsushita case was an excep- 
tion among exceptions.” 

Under Japanese law it has been dif- 
ficult for consumers to win product 
liability cases because they have to 
prove not only that the defective prod- 
uct caused damage, but aisn that the 
manufacturer produced the defective 
product intentionally or accidentally. 

There have been only 137 product 
liability cases between 1949 and 1991, 
according to the Ministry of Interna- 
tional Trade and Industry. 

The draft bill is based on a report of 
the prime minister's Social Policy 
Council, which largely reflects the 
views of ministries, industry and aca- 
demics. It has drawn criticism from 
consumer groups and lawyers. 

Critics say that, as it stands, it 
favours industry over consumers. It 
would let manufacturers plead inno- 
cence on the grounds that danger 
could not be predicted in the light of 
te chnical standards at the time. This 
provision was included to answer con- 
cerns that strict liability rules would 
hamper manufacturers* drive to 
develop new products. 

At the tune, whfle access to 
crucial corporate information would 
still be severely restricted, the draft 
bill requires the party seeking dam- 
ages to pinpoint where exactly the 
defect is located. The bill further 
exempts a number of products, such 


as buildings and certain vaccines 
from liability. Critics also charge that 
the rule holding manufacturers liable 
for only 10 years after a product is pot 
on the market, restricts consumers’ 
ability to win cases, particularly 
where drugs are concerned. 

Mr Sugiura believes that the worst 
of the proposals is the requirement 
that the term “defect” he strictly 
defined. This, he argues, helps manu- 
facturers to prepare for the possibility 
of liability. “If that is included, it 
would be worse than not having a PL 
law at all” he warns. 

Critics also say the proposals foil 
short of legislation protecting con- 
sumers in toe US. “At first we were 
worried that the Japanese law would 
be as diluted as that in parts of toe 
European Union, hut now we are wor- 
ried that it will be worse," says Ms 
Tomiyama of the Consumers’ Union. 

If the proposed bill goes through as 
it stands, it will be firm testimony to 
toe strength of industry’s voice in the 
government 

But Mr Sugiura is still hopeful The 
governing coalition has set up a prod- 
uct liability project team which has 
mainly lawyers as its members. This 
group is trying to get the Social Pol- 
icy Council’s proposals reviewed, par- 
ticularly on the definition of defects, 
and wfll have a significant influence 
over the final form of toe bUL “That is 
something different from the previous 
government and offers hope for toe 
bill," he says. 


By Davfd Horovftz in 
Jerusalem and Mark Nicholson 
'n Cairo 

Israel has agreed to allow a 
first contingent of 300 to 400 
Palestinian policemen to be 
deployed in the Gaza Strip 
early next week in the first 
vestige of Palestinian, self-rule 
in the occupied territories. 

Israeli and FLO officials will 
r e sum e intensive negotiations 
in Cairo tomorrow on the final 
aspects of the much-delayed 
“Gara-and-Jericho-fSist" Pales- 
tinian self-rule deal with a 
view to reaching agreement 
within two weeks. 

The intensified activity fol- 
lows Thursday’s breakthrough 
when Israel and the Palestine 
Liberation Organisation con- 
cluded a deal for the deploy- 
ment of a 160-strong interna- 
tional observer force in 
Hebron, to serve as protection 
for the Palestinians there in 
the wake of February’s Hebron 
mosque massacre. 

The force will comprise 90 
Norwegians. 35 Danes and 35 
tertians - 60 of them lightly 
armed for their “personal pro- 
tection.’’ The mandate is far 
three months but can be 
extended if both sides agree. 


In Tunis, PLO officials said 
they hoped Israel could com- 
plete its militarywithdrawal 
from Gaza and Jericho by April 
23. as originally scheduled in 
the declaration of principles 
the two sides signed last Sep- 
tember in Washington. 

“The Israelis know how 
impcalani this date is and we 
will insist on it very hard," 
said Mr Marwan Kanafani, an 
adviser to Mr Yassir Arafat 
the PLO chairman. 

PLO Officials in Cairo said 
they believed the two sides 
were close to announcing the 
date for an Israeli withdrawal 
But they would not confirm 
remarks by a PLO official in 
Jordan that Israel had already 
agreed to begin withdrawal on 
April 12 and complete the pul- 
lout by April 30. 

Mr Nabfl Shaath, the chief 
FLO negotiator, said after the 
Cairo deal was reached that it 
marked “a renewed commit- 
ment to finish by the target 
dates". 

PLO and Israeli officials 
have emphasised during last 
week's talks that the Hebron 
massacre and events since 
have heightened the need to 
speed implementation of the 
Gaza-Jericbo deal 



Kantor presses Gatt 
over workers’ rights 


than anyone else. 


By David GoocBiart, 

Labour Editor 

The US has given its strongest 
warning to date that continu- 
ing refusal by other countries 
to discuss workers’ rights win 
undermine US support for toe 
Uruguay Round trade accords 
due to be signed in Marrakesh 
on April 12-15. 

Mr Mickey Kantor, the US 
trade representative, has writ- 
ten to Mr Pets- Sutherland, 
director general of tire General 
Agreement on Tariffs and 
Trade, warning; “Failure to 
address the labour standards 
issue at Marrakesh will 
severely undermine the broad 
political support that has 
developed for the 'Uruguay 
round results in the US." 

The US wants ministers to 


examine the link between 
workers' rights and toe world 
trading system when they 
meet to sign the Uruguay 
Round agreements. 

It is backed strongly by 
France and Canada, and with 
reservations by the European 
Union. Opponents argue that 
the workers’ rights issue is 
either a form of disguised pro- 
tectionism, by developed coun- 
tries or that it is inappropriate 
to link tiie issue with trade. 

But Mr Kantor, a former 
union lawyer, has a personal 
commitment to the issue, as 
does President Bill Clinton. Mr 
Mark .Anderson, an official of 
the AFL-CIO union organisa- 
tion, said: “Congress would 
take it very seriously if we 
come back from Marrakesh 
empty-handed." 


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Central bank 
chief resigns 
in Malaysia 


By Kferan Cooke in Singapore 

Mr Jafiar Hussein, governor of 
Rank Negara, Malaysia's cen- 
tral bank, resigned yesterday 
after taking responsibility for 
losses amounting to thousands 
of mini ons of dollars due to 
trading in foreign exchange 
markets. 

Presenting its 1993 annual 
report on Thursday, Bank 
Negara disclosed that it lost 
more than M$5.7bn (£l.43bn) 
through foreign currency 
transactions last year. That fol- 
lowed a loss of nearly MSlObn 
in 1992. 

Mr Lira Kit Siang, a Malay- 
sian opposition leader, said 
that Mr Anwar Ibrahim, Mal- 
aysia’s deputy prime minister 
and finance minis ter, should 
also resign and that a royal 
commission should be 
appointed to investigate the 
latest losses by the central 

hank 

This is the greatest finan- 
cial scandal in Malaysian his- 
tory,” said Mr Lim. 

Bank Negara has long been 
known as an aggressive player 
in foreign exchange markets. 
Mr Jaafar said he took full 
responsibility for the loss. 

“In the absence of perfect 
hindsight, mistakes will be 
made - indeed they were 
made," he said. 

Mr Jaafar said there had 
been inadequate monitoring of 
the bank's foreign exchange 
activities. The system is put 
right now ... an unfortunate 
chapter in the bank's history is 
now closed,” he added. 

Bank Negara says that the 
1993 losses were caused mainly 
through unwinding forward 
positions taken up the year 
before. 

The bank’s losses in 1992 
were mainly dne to the bank's 
ill-iated foray into sterling, in 
the days before the withdrawl 
by Britain from the European 
Exchange Rate Mechanism and 
the subsequent devaluation of 
the pound. Losses also came 
through trading in the German 

mar k 

Mr Jaafar said that all for- 
ward trading positions had 
now been unwound. He said 


that, in future, the bank would 
wmfine itself to spot trading in 
manag in g its international 
reserves. 

However, Bank Negara's 1993 
accounts reveal further contin- 
gent liabilities of M$l.4ibn. 
Banking analysts also point 
out that, but for a steep depre- 
dation in the ringgit (the 
Malaysian dollar) during the 
last days of 1993, foreign 
exchange losses in Bank 
Negara's accounts would have 
been up to M$3bn greater. 

Analysts say Bank Negara 
forced the ringgit to fall by 
more than 5 per cent against a 
basket of currencies at the end 
of 1993 by selling large 
amounts of the Malaysian cur- 
rency and buying in US dol- 
lars. The move Improved the 
1993 accounts by raising the 
value of foreign currency in 
Malaysian dollar terms. 

However, it also tempted 
speculators, who felt that the 
ringgit was undervalued, to 
charge into extensive buying of 
the currency. 

Over the last three months, 
Rank Negara has introduced a 
series of measures to try to 
force the speculators out of the 
market 

Bank Negara also announced 
a net operating Loss for 1993 of 
MJ712m, the first in the bank's 
history. The hank said the loss 
was mainly due to the “phe- 
nomenal cost” of mopping up 
PTPfiwt liquidity in the market 

caused by the very large 
inflows of foreign funds 
attracted by Malaysia’s strong 
economic fundamentals and its 
rapidly growing stock market 

The bank said inflationary 
pressures had been succesfully 
contained. 

News of the foreign 
exchange losses and the resig- 
nation of the bank’s governor 
has overshadowed the bank's 
upbeat message about the 
Malaysian economy. For the 
sixth successive year, the econ- 
omy grew in 1993 by more than 
8 per cent The bank stud 1994 
“promises to be yet another 
good year." It added that Mal- 
aysia's real gross domestic 
product was likely to grow by 8 
to &4 per cent 


Fines 
point to 
paranoia 
ahead 

Kieran Cooke 
charts the 
aftermath of 
Singapore’s 
secrets trial 


G overnment officials in 
many countries would 
be delighted at a dis- 
closure of economic growth 
running to wore than 4 per 
cent - not so in Singapore. 

in a case which has Intrigued 
and alarmed Singapore's finan- 
cial community, two business 
journalists and three local 
economists were found guilty 
this week of breaching Singa- 
pore’s Official Secrets Act by 
having disclosed a A6 per cent 
growth figure for the second 
quarter of 1992 before it was 
officially released. The five 
were fined a total of S321.000 

(£9,000). 

“Information in Singapore is 
already very tightly con- 
trolled,’* said a senior represen- 
tative of a foreign securities 
house. This verdict is bound 
to make analysts nervous over 

making any predictions about 
Singapore’s economy. Paranoia 
is going to be the order of the 
day." 

The saga that led to what 
became known as Singapore's 
secrets trial began on June 29 
1992, when the Business Times, 
the island republic’s leading 
financial daily, accurately fore- 
cast the preliminary second- 
quarts - 4.6 per cent growth fig- 
ure. It was officially released 
more than a month later. 

After the paper's report had 
appeared, Singapore's Internal 
Security Department (ISD) 
swung into action. Officers 
raided the Business Times, 
seizing reporters' notebooks 
and files. The local offices of 
two financial securities houses 
also received visits by the ISD. 
Monetary officials, securities 
analysts, economists and jour- 
nalists were questioned. 

The government suspected a 
conspiracy. Mr Lee Kuan Yew, 
Singapore's elder statesman, 



CONTROVERSIAL CONVICTION: Business limes editor Patrick Daniel (centre left) leaves court in Singapore with bis lawyers 
and his wife after he and others were fined in the island republic's secrets trial 


hinted that certain “pressure 
groups" were trying to under- 
mine the government. 

In 1990. Mr Goh Chok Tong 
had succeeded Mr Lee as prime 
minister. Mr Goh had 'hinted 
he wanted to bring in a more 
liberal, consultative regime. Mr 
Lee said he doubted that the 
Business Times would have 
dared to use “illegally obtained 


mists with Crosby Securities, 
the regional brokerage. 

Mr Chan Sek Keong, Singa- 
pore’s attorney-general, who 
headed the prosecution, said 
an important principle was at 
stake. Tt is that persons who 
have been entrusted with clas- 
sified information, of whatever 
nature, in their official duties, 
must keep it secret" 


nicated the growth figure to 
the two brokers. However, the 
judge - later suggested to the 
prosecution that the trial could 
go ahead on an amended 
charge against Mr Shanmngar- 
atnam of having put classified 
information at risk. 

The trial's outcome poses 
questions about press freedom 
and the fmndHng of informa- 


‘This verdict is bound to make analysts nervous over making 
any predictions about Singapore’s economy’ 


or leaked official figures” if he 
were still prime minister. 

The trial began in October 
last year. The accused - 
described by defence and pros- 
ecution as distinguished people 
who had excelled in their pro- 
fessions - were Mr Patrick 
Daniel, editor of the Business 
Times, Mr Kenneth James, a 
senior BT reporter, Mr Thar- 
mnT| shanmugaratnam, direc- 
tor of the economics depart- 
ment at the Monetary 
Authority of Singapore (MAS), 
Singapore's de facto central 
bank, Mr Manu Bhaskaran and 
Mr Raymond Foo, both econo- 


The prosecution said all five 
had colluded in disclosing the 
official preliminary growth 
estimate: the leak had begun 
with Mr S hanmugaratnam and 
ended in the BT article. 

At times during the 42-day 
trial, prosecution and defence 
argued over whether or not the 
figure had been communicated 
inadvertently and, if so, 
whether this was an offence. 
At one stage, the prosecution 
case seemed in danger of col- 
lapse. with the judge ruling 
that there was no evidence to 
support the charge that Mr 
Shanmugaratnam had commo- 


tion in Singapore, particularly 
in relation to the country’s 
declared aim of becoming a 
main global fmanrin'i centre. 

Singapore's Official Secrets 
Act lets the gover n ment clas- 
sify almost any piece of unre- 
leased information as secret 

The attorney-general had 
said during the trial that com- 
municating classified informa- 
tion “ixnintentionally, reck- 
lessly or in any other way" 
constituted a crime. The 
defence argued that this gave 
the authorities carte blanche to 
prosecute anyone - from 
senior officials who had unin- 


tentionally released classified 
data to newspaper readers who 
saw such material. Tf docu- 
ments containing classified 
information are blown by the 
wind and land in someone's 
else’s hand, this could be seen 
as a crime.” said the defence. 

Singapore’s press is already 
tightly controlled and few 
doubt that the convictions will 
make journalists more ner- 
vous, particularly about inves- 
tigating file workings of gov- 
g pnng it 

Mr Daniel admitted during 
the trial that, by publishing 
the figure, he knew he could 
possibly be breaching the Act 
But he said that most analysts 
at the time seemed to be over- 
estimating economic growth 
and so to publish only their 
figures would give the wrong 
impression. T wanted to give a 
correct assessment of the eco- 
nomic performance up to June 
1992," said Mr Darnel 

The Singapore government 
takes a very different view. 
“The government will not 
allow anyone' to use the excuse 
of ‘aggressive reporting 1 or the 
needs of the information age* 
to divulge classified informa- 
tion," said a senior official. 


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Fear of more violence overshadows fragile truce 


Troops move into Natal 


By Michael Holman in Durban 
and Patti Wakhnsfr in 
Johannesburg 

South African troop 
reinforcements moved into 
Natal province yesterday to 
enforce a state of emergency, 
while rival parties in the prov- 
ince seemed to have declared 
an informal Good Friday truce. 

Troop numbers were small, 
with only 150 soldiers arriving 
by yesterday and about 300 
more due by tomorrow. But 
security force chiefs made 
dear that the South African 
Defence Force would take 
charge in the province, under 
the emergency declared on 
Thursday, and that the Kwa- 
Zulu police, healed by Chief 
Mangosuthu Buthelezi as 
police minister, would take 
orders from the SADF. 

This effectively deprives the 
rhii»f of the police ministry and 
could be a first step towards 
deposing him as chief minister 
of the KwaZulu homeland, as 
which he has little real power. 


So far, he has reacted with 
restraint, indicating he is pre- 
pared to co-operate with the 
military, no doubt calculating 
that he cannot gain by outright 
defiance. He may well be bid- 
ing his time, confident that, 
without his consent, peaceful 
political campaigning would be 
impossible in Natal, military or 
no military. 

Much will depend on the out- 
come of a meeting last night of 
the heads of the SADF, the 
South African Police and the 
KwaZulu police in the prov- 
ince, where the future role of 
the KwaZulu force was to be 
decided. Mr Nelson Mandela, 
leader of the African National 
Congress, said on Thursday 
the force would be confined to 
barracks, but there was no pro- 
vision for this in the emer- 
gency regulations published 
yesterday. 

These gave security forces 
powers to detain people with- 
out charge for up to 30 days, to 
use "necessary force" to keep 
order and to search people and 


premises without a warrant. 
The rules bar unauthorised 
military training, prohibit the 
display of weapons or poten- 
tially dangerous objects 
(including traditional Zulu 
spears and fighting sticks) and 
set strict conditions for 
marches and rallies. 

On the first day of the emer- 
gency. similar to one declared 
under apartheid in the mid- 
2980s, police said only five peo- 
ple were killed. This Is not an 
unusual number in a province 
where at least 300 people were 
killed last month, the highest 
one-month tall since the inter- 
neciiie conflict erupted in the 
early 1980s. 

This Easter weekend. South 
Africa's roads are more danger- 
ous than its townships. Nearly 
50 people have already died in 
traffic accidents. 

In Durban yesterday, how- 
ever, few people seemd to 
believe the truce would last, or 
that the emergency would 
bring peace. Many fear instead 
a rise in violence. 


India takes further steps 
to liberalise trade policy 


By Stefan Wagstyl 
in New Demi 

India has announced further 
liberalisation of its trade pol- 
icy, Including the easing of 
rules on the import of second- 
hand capital goods and the 
removal of import bans on cer- 
tain electronic components to 
help the assembly of finished 
goods in India. 

Mr Pranab Mukhezjee, com- 
merce minister, announced the 
changes on Wednesday and 
Thursday. He hoped exports in 
the 1994-95 year, starting this 
month, would grow by more 
than the 21 per cent increase 
recorded in the first 11 months 
of 1993-94, the latest period for 
which figures are available. 

The minister disclosed that 
exports in the 11 months to 
February soared to a record 
$19.8bn (£13.4bn), whereas 
imports grew much more 
slowly, by just 14} per cent to 
$20-3bn, leaving a trade deficit 
of a mere 5500m. 

Agricultural exports grew 
particularly test, boosted by 
liberalisations of last March. 
The textiles and gems and jew- 
ellery industries also per- 


formed strongly, said Mr 
Mukhexjee. 

This week's liberalisation 
measures were less radical 
than expected. Ministers had 
discussed a limited lifting of 
India's long-standing ban on 
the Import of most kinds of 
consumer goods. 

But the government has 
backed away from this move, 
apparently out of concern that 
such a large gesture might fuel 
opposition campaigns against 
further liberalisation. 

The ruling Congress (I) party 
has been under attack for hav- 
ing accepted the outcome of 
the Uruguay Round talks of 
the General Agreement on Tar- 
iffs and Trade. 

In a parliamentary debate 
this week, opposition MPs 
accused the government of 
having caved in to pressure 
from developed countries 
which, they said, stood to gain 
more from the proposed agree- 
ment than does the developing 
world. 

The measures announced 
include the removal of a maxi- 
mum age for Imported second- 
hand capital goods. The rules 
on duty-free export-processing 


zones are being relaxed to per- 
mit activities Including trade 
repair and reconditioning, as 
well as manufacturing. This 
could, for example, enable 
Indian companies to establish 
workshops for repairing goods 
from abroad. 

The list of banned import 
items is being pruned, though 
less heavily than last year. As 
well as certain electronic com- 
ponents. imports of samples for 
product development are to be 
allowed, as are imports of out- 
board motors for fishing ves- 
sels. 

Schemes by which exporters 
can import components and 
other goods to be put into 
exports are to be simplified. 
The government is establishing 
a new category of “super star 
trading houses” - companies 
whose exports are so large that 
they will qualify for further 
exemptions from the rules. 

The new measures are incor- 
porated into the government's 
five-year trade policy plan for 
1992*07. 

Despite all the liberalisation 
of the last three years, this still 
runs to two volumes and 1462 
pages in alL 


Thailand 

reformers 

suffer 

setback 

By Victor MaBet in Bangkok 

-Thailand's government 
suffered a humffiating- defeat 
w- parliament yesterday when 
rigfttwjng opposition parties 
and the military-domiiiated 
senate threw out its plans to 
reform the constitution and 
make the political system 
more democratic. 

. The defeat raised questions 
about the ability of Mr Chnan 
-Leekpai, the prime minister, to 
hold together bis five-party 
. coafittoh. The government was 
elected to 1992 with a mandate 
to s t rength en democracy, after 
5 Q people were killed in an 
uprising that overthrew a pro- 
military government. 

Among those who voted 
against Mr Oman's govern- 
ment, In a joint session of the 
lower house and senate, were 
Gen Wlmol Wongwanich, 
afmy commander-in-chief, and 
Mr Vljit Sookmark, defence 
minister. 

A government spokesman 
described the defeat as “a bad 
situation”. Dealers oh the Thai 
stock exchange marked down 
share prices for the third day 
running. The SET index fell 
7.46 points yesterday to close 
at 1,232J>3. 

Bat Mr Oman insisted that 
parliament would not be dis- 
solved. “There have been 
attempts to topple my govern- 
ment by the group of people 
who want to return to power," 
he told reporters. 

The senators, who were 
appointed by a military junta 
after a coup d’dtat in 1991, 
joined with opposition mem- 
bers of parliament to push 
through their own, hastily pre- 
pared, batch of constitutional 
amendments while blocking 
the government's version. 

Senators were particularly 
incensed by the government's 
plan to make the senate more 
accountable and reduce the 
n umb er of its members to 120 
from 270. The government 
wanted - among its other, less 
controversial, amendments - 
to lower the national voting 
age from 20 to 18. 

The counter-proposals 
drawn up by the apposition 
affiance are regarded by most 
Thais as a way to undermine 
the government rather than a 
serious a t tempt to reform the 
constitution. 

Pro-democracy activists who 
joined the uprising against the 
aimed forces in 1992 are now 
in confusion. They oppose 
attempts by the armed forces 
and their allies to increase 
their influence but are also 
Illust r a ted by Mr Chuan’s slow 
progress. He is accused, 
among other shortcomings, of 
felling to solve Bangkok's traf- 
fic problems. 

During 1992, the Thai media 
divided Thai politicians into 
pro-democracy “angels”, such 
as Mr Chnan, and pro-military 
“Satans”. But Mr Sukhum- 
bhand Paribatra, a prominent 
academic and political com- 
mentator, said after the gov- 
ernment's defeat this week 
that parliament should be dis- 
solved and new elections held. 
He remarked: “Now all MPs 
are Satans.” 


N Korea 
rejects 
UN plea 

By John Burton in Seoul 

North Korea yesterday 
rejected a relatively mild 
statement by the UN Security 
Council urging it to accept 
international unclear inspec- 
tions. 

Pyongyang instead insisted 
that the issue can only be 
resolved through direct negoti- 
ations with the US, as part of 
an attempt to win diplomatic 
recognition from Washington. 

The IIS has refused to hold 
discussions with North Korea 
until it accepts full inspections 
by the International Atomic 
Energy Agency of its seven 
declared nuclear sites. 

The UN on Thursday 
adopted the statement It lacks 
the threat of sanctions that 
had been sought by toe US if 
North Korea fans to comply- . 

Hie statement arose from a 
compromise to gate the sup- 
port of China, which opposes 
sanctions. Beijing . had 
suggested that it would veto a 
tougher resolution against 
North Korea. . 

Mr Han Sung-joo, South 
Korea foreign minister, wel- 
comed the statement saying it 
added “tremendous pressure" 
on North Korea to accept 
inspections. He suggested that 
China would support tougher 
actions if North Korea does 
not heed the TIN demand, 
which also calls for' the 
resumption of inter-Korean 
talks on mutual nuclear 
inspections. 


5 






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FINANCIAL TIMES WEEKEND APRIL 2/APRIL 3 1994 


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FINANCIAL TIMES WEEKEND APRIL 2/APRIL jJ994 


NEWS: UK 


Amnesty urged for ‘black’ economy 


By John Will man, 

Public Policy Editor 

The so-called “black” economy 
companies should be offered an 
amnesty on their undeclared business 
for agreeing to join a legitimate new 
sector, the Adam Smith Institute is to 
propose next week. 

The sector would be the economic 
equivalent of a greenhouse - a shel- 
tered part of the economy in which 
fledgling businesses could grow, 
according to the institute. 

The think-tank, which pioneered 


Thatcherito policies in the 1980s, says 
it would operate like a portable enter- 
prise zone, but applying the exemp- 
tions to an economic category Instead 
of a geographical area. 

hi the same package the institute 
proposes the abolition of capital gains 
tax and inheritance tax. 

The radical proposals are designed 
to demonstrate the continuing intel- 
lectual dominance of the right in pol- 
icy thinking. The institute will urge a 
boost to the UK economy through 
measures to encourage small busi- 
nesses and knowledge-based compa- 


nies. “The aim should be to encourage 
Inventiveness and innovation, not to 
by and keep it under control," says 
the institute. 

Among the recommendations are 
large tax cuts for innovative small 
businesses and the lifting of 
regulations intended for larger con- 
cerns. The aim would be to make 
Britain an exploiter of ideas which 
other countries would pay royalties to 
use. 

The proposals will come in a list of 
100 targets the Conservative party’s 
leading free-market campaigners 


believe the UK can achieve in the 
next 25 years. The institute win urge 
that the rnmiTpiniratinnK industry be 
singled out for special treatment 
Inventors and com panies with innova- 
tive products in telecommunications, 
television and information networks 
should be encouraged to make Britain 
a world leader. 

The government should set a target 
for every home to have access to 
information and entertainment 
through alternative transmission 
systems, such as terrestrial broadcast- 
ing, cable and satellite, the institute 


recommends. Achieving this would 
. mean relaxing regulation on compa- 
nies to encourage expansion. 

The institute will urge the govern- 
meat to continue cutting taxes , and 
public expenditure over the next 25 
years. It will propose a target of 10 per 
cent for the basic rate of tax and 20 
per cent for the higher cate. . 

Public expenditure should be cut to 
20 per cent of GDP by the year 2020, 
by further privatisation «nd cash con- 
trols on the public sector. - 
20-20 Vision. ASl, 23 Great Smith 
Street, London SW1P3BL £25. 


Channel tunnel 
passenger link 
faces delay 


By Charles Batchelor, 
Transport Correspondent 

The Channel tunnel will not be 
fully opened for passenger 
trains until at least September, 
four months after the official 
opening on May 6. 

This will mean that the 
£10bn project will not be able 
to take foil advantage of the 
peak summer season, deferring 
still further repayment of its 
debts. The ferry companies 
have leapt at the opportunity 

to boost their revenues by 
increasing sailings on cross- 
channel routes. 

Eurotunnel, operator of the 
32-raile link, said the opening 
had been delayed by hundreds 
of relatively minor problems, 
including difficulties with ven- 
tilation, control equipment and 
the rolling stock. 

The company said yesterday 
that the September deadline 
did not represent a further 
delay, saying there had been 
confusion between the start 
date and the time when ser- 
vices reached full capacity. It 
still hoped to start a limited 
service to paying passengers 
very soon after the official 
opening. 

Last month Mr Andte B§n- 
ard co-chairman of Eurotunnel, 
said the tunnel would start 
passenger services before the 
start of the s umm er season. He 
did not give a date for the 


introduction for a full service. 

Mr John Noulton, the compa- 
ny’s director of public affairs, 
said yesterday: “We will start 
passenger services as soon as 
possible after the official open- 
ing. They will build up during 
the summer and at the end of 
the summer will reach a full 
level of sendee.” 

In the face of continuing 
delays with passenger services, 
Eurotunnel is giving priority 
to starting its freight services, 
but even these may be delayed 
beyond the official opening. 

Mr Noulton said the com- 
pany had underestimated the 
time it would take to complete 
commissioning tests. He denied 
that the h anks had imposed 
any time limits on the testing 
programme or that there was 
any fundamental problem. 

He said: “There are thou- 
sands of trivial problems but 
they were the expected difficul- 
ties. The main one was the 
availability of locomotives. We 
couldn't do all the tests or 
complete the training.” 

Freight and passengers 
trains have been running 
through the tunnel regularly 
in recent months as part of the 
testing. 

A planned rights issue to 
raise a further £500m plus a 
similar amount of debt is still 
due to go ahead before June. 
Eurotunnel's interim results 
will be announced on April 2L 



A limited edition of 850 prints - signed by Eurotunnel chairman Sir Alastair Morton - of the Le Shuttle painting by Terence Cuneo 
(above), the celebrated railway artist, will be on board the first passenger shuttle through the tunnel Photograph Tony Andrews 

Scottish terminal nears completion 


By James Buxton, 

Scottish Correspondent 

Scotland's Eurocentral freight 
terminal for the Channel tun- 
nel is virtually complete at 
Mossend In Lanarkshire. 

When the tunnel opens one 
freight train a day will leave 
Mossend with Scottish exports. 
It will be split up and mixed 
with trains From other 
terminals across the UK, 
to form new trains des- 


tined for continental Europe. 

The Mossend terminal, 
which is near the M8 motor- 
way and the enterprise zone 
that has been created to help 
Lanarkshire recover from the 
disappearance of its steel 
industry, has received a strong 
level of inquiries from prospec- 
tive users. 

Personal-computer manufac- 
turers and whisky companies 
are expected to use it for conti- 
nental shipments. 



The terminal is about 400 
miias from the Channel tunnel , 
the distance at which rail 
freight is thought to become 
economic compared with road. 
This advantage increases the 
further the trains penetrate 
into continental Europe. 

The terminal has been built 
by the Lanarkshire Develop- 
ment Agency - the local enter- 
prise company - at a cost of 
£8.6m. 

It will be handed over to 


Railfrelght Distribution, which 
will operate it 
The terminal consists of four 
sidings running alongside a 
large tarmac expanse where 
containers will be moved from 
trailers to trains by mobile-lift 
equipment The containers will 
pass through the administra- 
tion block and under a gantry 
for a security inspection before 
Customs clearance. The site is 
surrounded by a high security 
fence. 



output is 
forecast to 
increase 


By Andrew Tayfor, 

Construction Correspondent 

Construction output, after 
declining for three consecutive 
years, is expected to rise by 1 
per cent this year and by a 
Anther 2 per cent in 1995, one 
of the Industry’s forecasting 
bodies is exported to announce 





Construction Forecasting 
and Research (CFJR), which 
previously provided output 
estimates for the National Eco- 
nomic Development Office, 
says new construction orders 
rose by 12 per cent last year, 
the first annual increase since 
1988. 

It warns, however, that 
increases in output will be 
only modest and could easily 
be upset If private-sector 
investment fails to compensate 
for public-spending cuts 
announced in last November’s 
Budget 

Sixty per cent of last year's 
increase in orders was gener- 
ated by the public sector. 

Mrs Jacquie Cannon, CFR 
director, said that there was 
little room, for complacency 
even though the industry was 
be ginning to climb out of 
recession. 

“Continued recovery does 
depend on the private sector's 
ability to sustain the recovery 
as publio-sector activity tails 
off,” said Mrs Cannon. 

Construction and building 
material companies have critic- 
ised the government for the 
slow pace in encouraging pri- 
vate investment in roads and 
other infrastructure which 
they say is essential to offset 
lower public investment in the 
mid and late 1990s. 

CFR said that output in 1995 
would still be 10 per cent below 
the 1990 peak. Competitive 
pressures resulting in compa- 
nies taking on contracts with 
Uttle or no margin for profit 
were unlikely to ease, with the 
industry expected to continue 
to suffer from over -capacity. 



The forecasting panel 
includes directors of large con- 
struction and building material 
companies, institutional inves- 
tors, trade associations- and 
public bodies. 

It expects private housing to 
be among the stronger per- 
formers during the next two 
years. 

The number of new private 
homes started by builders is 
expected to rise from 143,000 
last year to 180,000 this year, 
and 170,000 in 1996. 

Social housing starts, mainly 
by housing associations, are 
expected to fall from 43,000 to 
40,000 this year and 36,000 in 
1995, reflecting the squeeze on 
public spending. 

Construction of infrastruc- 
ture after completion of the 
Channel tunnel is expected to 
fan by 12 per cent this year 
and by a further 6 per cent in 
1995. 

This is in spite of work 
beginning on London's Jubilee 
underground Hmp. extension. 

Private industrial and com- 
mercial work, after declining 
steadily since 1990, are forecast 
to enjoy modest upturns this 
year of 8 per cent and 3 per 
cent respectively, and by 7 per 
cent and 4 per cent in 1995. 

Repair and maintenance 
across all sectors is expected to 
rise by 1 per cent and 29 per 
cent over the next two years. 


Ford to lift Dagenham production 


By Kevin Done, 

Motor Industry Correspondent 

Ford, the US carmaker, is 
increasing production at its 
asembly plant at Dagenham. 
Essex, in response to stronger 
demand in the UK new car 
market 

The plant, which was a 
byword for poor labour rela- 
tions at the .end of the 1980s, 
has also achieved a big 
improvement in productivity 
and quality, according to Ford. 

The group is raising Fiesta 
car output at Dagenham from 


940 to U000 cars a day from 
May or June. It has a capacity 
to produce 1,240 vehicles a day, 
but output tell as low as 740 a 
day at the bottom of the reces- 
sion in late 1992. 

A month ago Ford 
announced that It was increas- 
ing production at its plants at 
Halewood on Merseyside and 
at Southampton. 

Mr Jacques Nasser, chair- 
man of Ford of Europe, said 
the Dagenham plant, which 
also produces the Courier 
light-van ranges, had reduced 
the time taken to build a car 


(measured in hours per car) by 
45 per emit between 1969 and 
1993. During the same period 
the cost of manufacturing Fies- 
tas there had fallen by 23 per 
cent 

Ford’s UK vehicle assembly 
plants at Dagenham, Hale- 
wood, and Southampton were 
now performing marginally 
better than its assembly plants 
in Germany in terms of total 
costs, having dosed the dam- 
aging competitive gap that 
existed at the end of the 1980s. 

Mr Nasser said the Dagen- 
ham plant had “made huge 


improvements in productivity 
and cost effectiveness, and has 
become a competitive manufac- 
turer of top quality products”. 
The tumround in its fortunes 
has been dramatic and follows 
warnings by Ford in 1990 that 
Its survival was in doubt 
In 1990-91 the group 
launched a recovery plan to 
improve quality and productiv- 
ity. The strategy induded sim- 
plifying the Dagenham opera- 
tion by transferring all Sierra 
production to Belgium, thereby 
reducing the UK plant to a sin- 
gle model line. 


Tory backs call to return 
shipyard to public sector 


By Ian HamBton Fazey, 
Northern Correspondent 

Local leaders on Merseyside of 
the three main political parties 
are to press the government to 
take the Cammell Laird 
shipyard in Birkenhead into 
public ownership. 

They want Merseyside 
Development Corporation, a 
government agency, to use a 
compulsory purchase order. 

The move follows the failure 
of CSN, the ship repairer 
trying to buy part of the yard, 
to conclude a deal by last 
Thursday. That deadline was 
imposed by VSEL, the Barrow 
submarine builder which owns 
Cammell Laird. 

Contributory factors were 
worries about immunity from 
future compulsory purchase 
and availability of a £2m 


government grant to help dean 
the site. However, Mr John 
Hale, Tory group Leader on 
Wirral Borough Council, puts 
most blame on VSEL. 

Mr Hale, who is also a 
member of Merseyside 
Development Corporation’s 
board, said VSEL had insisted 
that CSN also buy C amm ell 
Laird’s construction hall when 
it wanted only its three dry 
docks and wet basin. VSEL's 
asking price has not been 
disclosed, but be said it was a 
“grossly exaggerated price”. 

What has incensed Mr Hale - 
and Mr David Jackson and Mr 
Philip Gilchrist, Wirral’s 
Labour and Liberal Democrat 
leaders respectively - is that 
the government sold Cammell 
Laird to VSEL in 1987 for £1 
provided it took over 
environmental liabilities. The 


leaders say at least £2m of 
environmental work is needed. 
It includes repairing river 
defences, clearing dereliction, 
digging out contaminated 
ground and demolishing old 
buildings. 

“We want Cammell Laird out 
of VSEL's hands; we do not 
believe they really want 
anyone to buy it,” Mr Jackson 
said. Successful development 
of ship repair there might 
challenge VSEL as it tries to 
diversity from defence 
markets. 

VSEL refused to comment, 
but said meetings with 
interested parties were being 
arranged for the week 
beginning April 11. The 
development corporation will 
meet the following week to 
consider making a compulsory 
purchase order. 


Binder partners in Scotland 
oppose Andersen merger 


Because business is never black and white. 


By Andrew Jack 

The Scottish partnership in 
BDO Binder Hamlyn, the UK’s 
eighth- largest accountancy 
firm, is set to vote against a 
proposed merger with Arthur 
Andersen, the fourth-largest 
Mr Ian Valentine, managing 
partner for the firm in Scot- 
land, said: “As things are, we 
will not go ahead. We are 
unable to see any strategic 
basis. We have a different cli- 
ent base, culture and fee leveL 
It just doesn't add up." 


He said that he spoke on 
behalf of the region’s 18 part- 
ners, and added: “I am reason- 
ably confident that we will not 
be the only region in the BDO 
network taking this view.” 

There are 11 regional part- 
nerships that make up Binder, 
of which four appear to have 
come out firmly in favour of 
merger. The partners are 
expected to vote on formal pro- 
posals in tiie next tew days. 

Andersen has said that it 
would be willing to proceed 
with the merger even if it was 


just with the single partner- 
ship covering London and 
Leeds, which represents more 
than half of fee income. 

The Scottish firm has one 
quoted client, Prestwick Hold- 
ings, and provides services to 
the subsidiaries of English- 
based clients. 

ft is believed to have 
received a number of 
approaches from other 
medium-size accountancy 
firms, and may decide to 
switch allegiance if the merger 
with Andersen goes ahead. 


Workers’ 
anxiety 
about jobs 
reduced 


By Lisa Wood, 

Labour Staff 

Full-time and part-time 
workers were equally arndoue 
in March about losing theii 
jobs, the latest MORI/IRS aur 
vey lor the Financial Times 
shows. 

Forty six per cent of full-time 
and part-time workers wen 
either very or fairly concerned 
about losing their jobs in the 
next 12 months. 

The trend since the monthly 
series started last April has 
been for full-time workers to be 
more anxious than part-time 
workers. Last month, however, 
anxiety fell slightly among 
full-time workers and rose 
among part-timers. 

Workers as a whole 
expressed more optimism 
about their job prospects. 

Manual workers continue to 
be the most pessimistic 
although the percentage of pro- 
fessional and senior managers 
who feel concern has climbed 
steadily. 

Pessimism about job pros- 
pects increased consistently 
until July, since when there 
has been a high degree of vola- 
tility. 

Mr David Martin, editorial 
director of IRS, the indepen- 
dent research organisation, 
said: “Unemployment appears 
to be coming down, even 
though a number of the jobs 
that are being created are 
part-time. However, at the 
same time people hear from 
day to day of large-scale redan 
donates. This may explain the 
volatility in terms of percep- 
tions about job prospects.” 



7 





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FINANCIAL TIMES WEEKEND APRIL 5/APRIL 3 1994 


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The future 

turns out the way 



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GE: YOUR GUIDE TO THE NEW BRITISH RAIL 


t 




Is this any 


way to run 
a railway? 


Q. Will 1 notice any difference 
under the new regime which 
came into force on April 1? 

A. Not at first Railway man- 
agers are determined that pas- 
sengers do not notice any 
immediate changes. Timetables 
win be the same, train liveries 
mil not be altered and level of 
service - good, bad or indiffer- 
ent - should be unchanged 

Q. So what is the point of 
privatisation? 

A. The aim is that over the 
next two to three years the old 
BR divisions are transformed 
into limited companies, still 
owned by BR, and finally fran- 
chised out to private bidders or 
management buy-out teams. 
As this process builds up, you 
will start to see new company 
logos and changes to time- 
tables. If more enterprising 
management teams have their 
way, you should start to 
receive an improved service 
and new marketing initiatives 
to encourage more people to 
travel by rail. 

Q. Won’t this posh tv ticket 
prices? 

A Critics believe so. but rail- 
way managers say competition 
from the private car, coaches 
and airlines means they have 
very little leeway to raise 
fares. It would also make good 
economic sense for train opera- 
tors to fill empty seats outside 
the rush hour, so expect new 
discount fares for off-peak lei- 
sure travel. One company. 
South West Rail, is even think- 
ing of free travel to reintroduce 
people to the pleasures of rail. 
The regulator is there to see 
that companies with effective 
monopolies do not misuse their 
power. But the system is 
untested, so the honest answer 
is that nobody knows. 

Q. How will the railway be 
able to operate efficiently in 
future with so many different 
parties involved? It all sounds 
very complicated 

A It is, but no more so than 
the system you axe accustomed 
to when travelling by air. Air- 
lines do not own airports, fre- 
quently lease their aircraft and 
often out contract mainte- 
nance. The government 
believes benefits of introducing 
competition will outweigh the 
“transaction” costs. Critics 
don't agree. Once the system 
beds down, it probably will be 
accepted as quite normal 

Q. Does the new system 
mean the government will no 
longer need to subsidise the 
railway? 

A, Far from it Subsidies will 
continue to most of the 25 train 
operating companies. In fact, 
the government’s desire for 
“transparency," identifying 
which parts of the rail network 
need which level of subsidy, 
has doubled the sums involved 
The train operating companies 
are now being charged the full 
rate for use of track, signalling 
and rolling stock. Under BR, 
some of these costs were not 
fully accounted for. 

Q. What is the purpose of 
this? 

A. It allows the government 
to Identify the most costly 
lines and question whether fur- 
ther subsidy can be justified. 

Q. So It can close them down 
and nobody will complain? 

A. Ultimately, yes. But do 
not underestimate public sup- 
port for particular lines. The 
government has said it does 
not envisage shutting down 
parts of the network in the 
foreseeable future. In the early 
stages at least, train operators 
will be required to maintain 
existing service levels. 

Q. Will the railway be safe 
with all those newcomers try- 
ing, to ran trains? 

A All the train operating 
companies as well as Ralltrack 
must prove to the safety 
authority, the Railways Inspec- 
torate which is part of the 
Health and Safety Executive, 
that their systems are safe. 
Many of the new companies 
will be run by people with a 


Charles Batchelor 




8 


38 








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railway background while 
operating staff will be drawn 
from the old British Sail and 
will have to meet established 
tr aining and safety standards. 

Q. Who draws up the time- 
tables under the new regime? 

A Operating companies will 
make their own timetable pro- 
posals with the aim of devising 
schedules which attract the 
most travellers. Overall 
responsibility for knitting 
them together lies with Rail- 
track. 

Q. If competing companies 
all ran trains through my 
local station who do I go to for 
timetable information and to 
buy my tickets? 

A The main company oper- 
ating on any particular route 
will lease the stations from 
Railtrack. It will then be 
obliged to provide all the nor- 
mal services for travellers, 
including providing unbiased 
information on timetables and 
tickets. The first practical 
example of this is the Gatwick 
Express, which is already run- 
ning as a trial or “shadow” 
franchise between London and 
Victoria. 

It says it will be scaling 
down its own promotional 
material at Gatwick and sell- 
ing its own tickets and those of 
its two rivals, Thamesfink and 
Network South Central, from 
the same ticket office. Just 
how unbiased a service the 
operators provide is still open 
to question, but competing 
companies will be watching 
each other closely and the raff 
regulator is there to intervene 
if necessary. 

Q. If Grandma wants to 
come for the weekend she will 
cross the territory of three 
operating companies. Can she 
buy a through ticket or must 
she boy three separate ones? 

A This point is still unde- 
cided. The government has 
said train operators must 
accept each other's full-fare 
and season tickets but this 
takes no account of discounted 
Saver, Supersaver and Apex 
tickets which represent 80 per 
cent of all tickets. The fran- 
chising director and the operat- 
ing companies are still trying 
to devise a solution. If multiple 
tickets are needed this would 
almost certainly push up fares. 

Q. The clock on the platform 
at my station has been broken 
for several months. Who is 
now responsible for fixing it? 

A The train operator who 
h as the lease on your local sta- 
tion would be responsible for 
minor repairs. Structural 
works, such as a new roof or 
rebuilding a platform, are the 
job of Railtrack. 

Q. Will the new train compa- 
nies be any better at collecting 
fares than BR and at putting 
staff on lonely stations? My 
local station is often imstaffed 
and I never seem to see a 
ticket collector. 

A. BR claims to have cut 
back on fares avoidance by 
using mobile teams of inspec- 
tors and targeting particular 
lines at particular times of the 
day or week rather than staff- 
ing every ticket barrier. They 
claim their losses are less than 
the “shrinkage” suffered by 
retailers. BR also claims that 
s taffing stations has no direct 
link to levels of crime, It is 
unlikely that the private train 
operators will put staff hack on 
stations. 

Q. What happens if I have a 
complaint? 

A You can complain to your 
local train operating company. 
If the problem Is not its fault 
hut results from, say, track or 
signalling. It will be able to put 
pressure on Railtrack or any 
other supplier. If you are not 
satisfied, you can also go to 
your regional Rail Users' Con- 
sultative Committee. The com- 
mittees can investigate com- 
plaints and bring them to the 
attention of the rail regulator, 


Train operating com pa n i es 

Passenger trains will be run by 25 train 
operating companies. These will 
ultimately be franchised to the private 
sector for periods expected to range from 
five to 20 years. They will employ train 
drivers, inspectors and ticket office staff. 
They will not own many assets, railing 
the track they use and leasing bath their 
trains and stations. Some companies, 
such as Gatwick Express, wiH run a single 
line: others such as ScotRaH wfll operate 
a complete network. Employees on April 
1:49,000. 


operating companies. They wiH take over 
routine maintenance such as fbdng the 
station clock but Railtrack wffl remain 
responsible for structure/ repairs. About 
13 of the larger stations, Including 
Birmingham New Street, London Kings 
Cross and Manchester Piccadilly, where 
there are greater development 
opportunities, will be let on long leases to 
private companies, probably property 
developers. Whoever acquired the lease 
would let the retail outlets and provide 
day-to-day maintenance. 


Infrastructure companies 

Railtrack vwH contract out maintenance of 
track and signaling to 14 infrastructure 
service units. These are the men you see 
alongside the track In bright orange 
safety Jackets. They carry out “heavy* 
work, such as renewing sections of track 
and putting in new ballast under the 
sleepers, and the fighter work of 
maintaining signalling and electrification 
equipment Employees on April 1: 33,500 


nesponsibffity for heavy freight operations, 
Involving complete tratnioads of bulk 
products such as coal, steel and building 
aggregates. The domestic container 
business, Fralghtltner. which moves 
container wagons from seaports to inland 
terminals wffl be sold off as a single unit 
Haulmark, the international contaner arm, 
wfll also be sold. AH freight operators wil 
pay Railtrack for the use of its track and 
signalling. Employees on April 1: 13,100 


government subsidy to the operating 
companies. 


Railtrack 

Takes over responsfoitity for track, 
signalling and its stations, it will charge 
the passenger train operators depending 
or how many trains they run. fl will 
maintain track, bridges and stations and 
co-ordfoate the timetables of operating 
companies. Responsible for the safety of 
the network under the eye of the Health 
and Safety Executive. Employees on April 
1: 12,000 


Rolling stock teas i n g companies 

Three rolling stock leasing companies wffl 
take over ownership of 1 1 .000 
locomotives, carriages and freight 
wagons. They will lease them out to the 
companies operating passenger and 
freight services. At first they WiH only have 
second-hand BR raffing stock but as train 
operating companies renew their fleets 
they are expected to order new rolling 
stock. The rolling stock companies wiH 
ultimately be privatised, probably by sale 
to existing leasing companies or financial 
institutions. Employees on April 1: 150. 


Ma i nte na nce 

Light maintenance, such as repaying train 
interiors and renewing damaged wheels, 
wifi be carried out in workshops run by 
the operating companies but leased from 
Railtrack. Major overhauls of locomotives 
wfll be carried out by one of six heavy 
maintenance depots. They are up for sale 
with bids expected from rolling stock 
manufacturers such as GEC Alsthom and 
ABB Transportation. Employees on April 
1:3,500 


Parcels 

Red Star Parcels, the express parcels 
business, and Rctifl Express Systems, 
which cany the Post Office's mail, wffl be 
sold as soon es possible. Employees on 
Aprflt: 1,800 


The mil regulator 

Mr John Swift QC has the twin rotes of 
promoting competition and protecting 
consumer Interests. Encouraging greater 
competition wfll tend to bring fares dawn 
and could bring him into conflict with the 
franchise director, who wants to charge 
as much as posstote for each franchise. If 
a train operator has a monopoly In a 
particular market, commuter Irakis into 
London, for example, the regulator may 
impose maximum fare levels. He must 
also approve agreements between 
Raflirack and the train operators. 


Stations 

Railtrack will own all of the nearly 2,500 
stations but wtfl lease most to train 


Freight 

Three new regional companies take over 


The franchising director 

Mr Roger Salmon, a former merchant 
banker, is to arrange the sale of railway 
franchises. He wffl negotiate with 
potential franchisees including 
management buy-out teams or outside 
buyers such as bus companies, rfrHnes 
and shipping groups. He will decide, 
depending on the bids he receives, the 
length and cost of the franchise. He also 
takes on responsibility for channelling any 


Government 

The transport secretary remains In charge 
of overall railway poficy, negotiates wHh 
Treasury about subsidies and has the 
final say over the building of new Ones or 
the closure of existing ones. He also 
appoints the franchising cfirector, rafl 
regulator and the chairman of Rafffracfc. 
The Treasury win decide on the level erf 
subsidy. 


Want to move from a miniature railway to the real thing? Charles Batchelor explains what you will pay 


The ‘train set’ costs £10m, for starters 


T he closest most rail 
enthusiasts get to run- 
ning a railway is a min- 
iature lay-out in the attic or 
the garage. A small minority 
achieves the greater reality of 
operating one of Britain’s 
growing number of preserved 
steam railways. 

The privatisation of British 
Rail provides the opportunity 
for the real enthusiast to run 
his or her own proper railway. 
Most of the private rail compa- 
nies are expected to be run by 
management buy-out teams or 
companies already in other 
fields of transport but there 
should be opportunities for 
smaller operators to run trains 
under “open access” agree- 
ments. These are intended to 
increase competition. But how 
affordable would it be to own 
and ran a modern day railway 
train? 

Take one of the stalwarts of 
BR's fleet, its Intercity 125 
High Speed Trains. These are 
diesel-powered trains which 
run on Unas such as London 
Paddington to Wales and the 
West Country route. Now 18 
years in service, after initial 
problems these trains are now 
running better and more reli- 
ably than ever, according to Mr 
John Cronin, BR’s area fleet 
manager in Bristol 


A complete train set - rail- 
way jargon for a locomotive 
and coaches - would set you 
back £10m new - about £3m 
for the twin locos, one at the 
front, another at the back, and 
eight coaches at about £750,000 
each. 

But buying a new train is 
not as simple as acquiring a 
new car. They are built to 
order and then only in produc- 
tion r uns which make manu- 
facturing economic. British 
railway manufacturing has 
been dogged by relatively 
short-run orders which do not 
allow for the continuous modi- 
fication and improvement of 
successful designs, Mr Cronin 
says. 

The High Speed Trains are 
powered by a marine engine, 
chosen because it was rela- 
tively light, thus causing less 
wear and tear on the track. But 
marine engines are designed to 
ran for long periods at the 
same speed, unlike trains 
which accelerate and deceler- 
ate rapidly, so modifications 
had to be made in the first few 
years. 

It is more likely that you will 
lease second-hand BR rolling 
stock. Comparisons with cars 
are difficult because leasing 
rates depend on mileage and 
depreciation usually over two 


to three years while a typical 
train set will last for 30 years 
or more. In addition the Trea- 
sury has still to agree the 
details of the leasing regime 
with the train operating com- 
panies. So leave the leasing 
costs out of yow calculations 
for the moment 
Before you can take a car on 
on the road you need to pay to 
road tax, or In the case of a 
train, your access charge to 
Railtrack, which took over 
BR's track and signalling on 
April 1. Track charges vary but 
the Great Western Railway is 
expected to pay £l20m a year. 
Spread that over its 36 high 
speed trains and you are pay- 
ing £33m for each one. 


F uel costs are major 
charge to the motorist 
and the HSTs have a 
1,100 gallon tank in each power 
unit A large tank is needed 
because each train set only 
does half a mile to the gallon. 
Great Western declines to 
reveal what it pays for its die- 
sel, but at the average rate 
charged to the private motorist 
a tankfuli will cost you just 
over £1500. 

Maintenance, inevitably, is 
costly. You can expect your 
locomotives to go in for a 
major overhaul every 2Vi to 


three years at a cost of £180,000 
Including £120.000 for the die- 
sel engines. 

The two-yearly overhaul of 
your carriages, mainly replac- 
ing the bogies - sets of twin 
axles - will cost another 
£ 100 , 000 . 

But you will also be replac- 
ing the standard components 
which wear out on any vehicle 
at regular smaller services. 
Brake pads will cost you £62 a 
pair plus labour to replace. 
This may not appear a major 
item but your train set will 
have 160 wheels. Great West- 
ern reckons to replace nearly 
26,000 brake pads a year on its 
fleet of 36 Ugh speed trains. 

You might think that a 
vehicle with metal wheels 
would be spared the Inconve- 
nience of punctures, but train 
wheels do suffer “flats”. These 
result when a train skids, a 
common occurence when 
leaves foil on the line. This 
flattens a small section of the 
wheel causing a bumpy ride. 

The introduction of an anti- 
skid mechanism on the trains, 

akin to the anti-brake locking 
systems on cars, has cut the 
incidence of “flats” but they do 
still occur. Regrinding wheels 
will cost you £200 a time. 

Few motorists respray their 
cars completely, but trains 


require a regular repaint - by 
hand because the large number 
of windows make spraying 
uneconomic - to retain their 
looks. Expect to shell out 
£2,000 to £3,000 per coach once 
every four years and £4,000 for 
a locomotive or power car. 

Keeping your paintwork 
looking smart between res- 
prays is also costly. Reckon on 
£250 and 1,000 gallons of water 
each time you stop off at the 
brainwash. 


Y ou might think that the 
opportunity for minor 
“shunts” with a vehicle 
which runs on a fixed line 
would be very small. But colli- 
sions with animals, suicides 
and debris on the line are not 
uncommon. Apart from a dent 
in the bonnet you are likely to 
suffer considerable damage to 
the pipework and other bits of 
machiner y under the tr ain. Set 
aside £5,000 to £10,000 for a 
“nose end” replacement 
Insurance is another major 
item for the car driver though 
you can reduce the charges by 
accepting a larger “excess." At 
present BR has catastrophe 
Insurance which starts at 
£LSm, meeting its own costs for 
claims below that level. You 
would have to shop around for 
insurance for your train since 


this is not an established sec- 
tor. The private companies 
considering taking over BR’s 
operations are apparently 
working on catastrophe insur- 
ance starting at £5m. 

With the proper training you 
should be able to drive your 
own train, but if you go above 
110 mph you must have a sec- 
ond driver. Drivers’ baric rates 
start at £210 a week but the 
average earnings are more 
than £300 a week. 

BR calculates that the cost of 
operating an Intercity train 
was £16 a mile in 1592-93. Com- 
pare this with the 45p per mile 
paid by the average private 
motorist and ISp to 2Qp per 
mile which Fleet Car magazine 
calculates for the typical busi- 
ness motorist driving a mid- 
sized car. 

One consolation is that the 
government will help you to 
meet your bills. It has prom- 
ised to maintain subsidies after 
privatisation - though the 
managers considering buy-outs 
wonder how long the Treasury 
will keep up its support 

Sailing has been described as 
the closest thing to standing fo 
a cold shower tearing up £10 
notes. Running a train is 
rather similar though the mod- 
em enclosed cabs will at least 

keep you dry. 


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raps Major over IRA ceasefire 


BytTmCoone 
and David Owen 

Daly yesterday 
took issue with Mr JotoSS 
over the IRA’s 72-hour ^ost- 
pster ceasefire and appealed 
■ eoveawaaat to put the 
--g£ republican leaders 

M I believe the opportunity 
™wdd not be passed by," Car- 
dma 1 Daly said. “It should- not - 
be rubbished." Speaking less 
“an 34 hours after the prime 
“mister denounced the IRA’s 
move as “seif-serving and cyni- 
cal". the Primate of alHreland 


said the ceasefire raised “ sig- 
nificant hope”, altiiraigh it wftS 
“disapp ointingly short". 

• “I am afraid, respectfully, I 
would not agree that this is a 
cynical exercise on the part of 
the IRA,” he added. 

“The significance is *h et for 
the first time in 20 years they 
have initiated this cessation of 
violence. Why not test itT 

As the leaders erf the three 
main opposition parties in the- 
irish republic issued a joint 
peace demand to the IRA, 
Archbishop Robin Romes, the 
Protestant Prixnate . of the 
Church of Ireland, responded 


to the ceasefire in a more 
downbeat vein. 

Although any cessation was 
to. be welcomed, he said: “The 
real Christian agenda for 
Northern Ireland must be writ- 
ten by those who see that a 
complete end to vio- 
lence . . . will give us the 
opportunity to plan the way 
forward in peace and justice." 

Yesterday's developments 
came as the British and Irish 
governments reaffirmed that 
die ceasefire, starting at mid- 
night on Tuesday, falls far 
short of the permanent cessa- 
tion required to admit Sinn 


FGln, the IRA’s political wing, 
into round-table talks. Sinn 
Fein has called for “immediate 
and direct talks" with the Brit- 
ish government to obtain clari- 
fication of the Downing Street 
declaration signed by London 
and Dublin last December. 

Dublin has expressed 
“extreme disappointment" 
with the IRA's response to the 
declaration, with Mr Albert 
Reynolds, the Irish prime min- 
ister, urging Sinn Fan to spell 
out what it means by its latest 
clarification demand. 

A senior aide to Mr Reynolds 
said he would not seek to put 


pressure on Mr Major to open 
talks with Sinn Fgin. He said 
that Dublin would keep com- 
munication Open tQ Sinn F&n, 
and “would have no* objection" 
if London did the same. 

Underlining Dublin's grow- 
ing exasperation with Sinn 
Fein. Mr Reynolds has 
departed for a week-long holi- 
day in Cyprus. 

Mr Gerry Adams, the Sinn 
F€in president, has said he 
“would not seek ter protract” 
any talks with the British gov- 
ernment and emphasised that 
Sinn fftn is not seeking nego- 
tiation. only clarification. 


Sinn Fein is expected to fur- 
ther outline its position tomor- 
row when Mr Martin McGitin- 
ness, a member of the parly’s 
national executive, addresses a 
rally in Dublin commemora- 
ting the 1916 Raster rising. 

Meanwhile, the Rev Ian Pais- 
ley, leader of the har dline Dem- 
ocratic Unionist party, said he 
planned to visit the US this 
month to “tell the truth" about 
Northern Ireland. Mr Paisley is 
to address the National' Com- 
mittee on American Foreign 
Policy, which caused contro- 
versy when it invited Mr 
Adams to New York. 


Fraud at British 
Council attacked 


By Kerin-Brown, 

PoHGoal Correspondent 

The British Council, the 
govern ment-funded body that 
promotes OK cultural interests . 
over seas, has been strongly 
criticised by a Commons -com- 
mittee over lax accounting pro- 
cedures which led. to a fraud 
costing nearly £800,000. 

The cross-party : - Public 
Accounts Committee said that. 
the fraud. was one of the big- 
gest it had: investigated, and 
warned that there was a risk it 
could happen again.' 

The committee said in a 
report.. to parliament .that the 
council paid £520,072 by elec- 
tronic transfer into, the over- 
seas bank accounts c£ bogus 
suppliers in, December 1992. 

Other irregiilarities, includ- 
ing fraud involving travel and 
subsistence claims, brought 
the total losses identified in 
1992*93 to. £589^000. • 

The report said a police 


investigation had indicated 

that the main fraud was exe- 
cuted by “a criminal team” 
•operating with inside informa- 
tion on the council's payment 
system. Four people had been 
arrested, but only £19,751 had 
been recovered. Police inqui- 
ries had foiled to establish the 
source of the leak of Informa- 
tion on the payments system. 

The .'committee said it was 
“astonished" that the council’s 
banking section did not check 
payment vouchers, documenta- 
tion and signatures before pay- 
ing suppliers. It said the - coun- 
cil had changed its procedures 
to prevent farther frauds, but 
it was “worrying" that the 
■ source of the' gang's informa- 
tion had not been identified. 

It said: “There is a risk of a 
farther leakage of sensitive 
information. We emphasise the 
need for the council’s changed 

and strmgthCTMri ffogmafll p-m- 

cesses to be proof against any 
-further irregularities.” 










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The County Durham district of Easington, stripped in recent months of Its last pits, has produced a visitors* guide which emphasises 
scenery and leisure amenities. It says it hopes to attract visitors to its rural calm, nigged coast and friendly people Photograph: North News 


NUT attacks 
other teaching 
unions in row 
over boycott 


By John Authors 

The largest teachers' union 
yesterday strongly attacked 
the two other classroom 
unions in the row over ending 
the boycott of national curricu- 
lum tests. 

Mr Doug McAvoy, general 
secretary of the NUT, said at 
the union’s annual conference 
in Scarborough that its execu- 
tive was unanim ous that its 
boycott of tests should con- 
tinue for a second year and 
predicted that no delegates 
would o ppose it 

in doing so he delivered a 
sharp rebuff to the govern- 
ment’s hopes of setting its 
national curriculum policy 
back on course. 

Mr McAvoy attac ked the 
ATL and NASUWT unions, 
both of which have advised 
their members to stop the boy- 
cott. Baroness Blatch, the edu- 
cation minister, will address 
both their conferences later 
next week. 

He said: “Speakers will urge 
other teacher organisations to 
review their position on the 
boycott There’s a desire on the 
part of the other two organisa- 
tions to snuggle up, if not to 
Baroness Blatch, then to the 
Conservative government" 

The NUT, traditionally the 
most leftwing teachers’ union, 
will consider motions to 
boycott the government's plans 
for school-based teacher train- 
ing, and to consider strike 
action over pay, growing class 


sizes and redundancies. Mr 
McAvoy indicated that the 
union would oppose national 
tests for 11- year-olds which are 
due to be introduced next year, 
saying they would be used to 
select pupils for secondary 
schools. 

His views are unlikely to 
sway the other two unions, 
although the NUT takes heart 
from the policy of head teach- 
ers' organisations not to ask 
any other teachers to do work 
boycotted by the NUT. 

Strategists for the other 
unions fear that if the boycott 
continues the government 
could force them to do the 
tests next year, through the 
annual pay and conditions set- 
tlement. They believe this 
would not require new legisla- 
tion. 

The NASUWT, which meets 
in Blackpool from Monday, will 
be visited by a government 
minister for the first time in 
eight yeans. Mr Nigel de Gro- 
chy, its general secretary, pre- 
dicts that Baroness Blatch will 
receive a courteous reception. 

Mr Peter Smith, ATL general 
secretary, said his union would 
also favour abandoning the 
boycott. He acknowledged, 
however, that some delegates 
would oppose his decision not 
to hold a ballot on the issue. 

ATL members can still 
legally boycott the tests if they 
claim this creates too much 
workload. Last year’s ballot in 
favour of a boycott still pro- 
tects them. 


■J • #*--? 




;Wr*U.. 


rters 



scasn warning 
for Mw-Staft endowments 


By mcharfi Lapper 7 : - - 

One of . the UK’s largest 
Insurance %>rnpanies Juts 
Twaii^ tmstomfire that they . 

- . 

mem'polk^ ; :in : atdeif : to pay 
offtbrirmorigages^ - :■ . - 

Royal Life, the life instance 
arm of Royal Insurance, has 
written to about 24,000 off its. 
500,000- policyholders, trigger- 
ing fears that other companies 
may follow suit 
The warning follows cuts in. 
tire reversionary - or annu al - 


v bonus which Royal has paid cm 
-: its “vrith profits” erBJowments 
in the" last two years, 
v . The policyholders affected 
are those who bought so-called 
; -Tow. start" 22 to 30-year poH- 
■ das. in X99T and 3S92L Ptend- . 
xons are set at a low rate dur- 
ing. the early year* ..-of the 
'poficy. - 

Royal stressed yesterday 
that customers need take no 
' action this year. But If bonuses 
remained at current levels 
modest additional premiums 
• would be necessary. 

Mr Icki Iqbal at Royal Life 


said, that following fails in 
inflation an a interest rates the 
company was taking a more 
pessimistic view about future 
investment returns. 

Royal reduced its reversion- 
ary bonus from 3.75 per c art to 
3-25 per cent - an amount 
which each year is charged an 
and added to the basic sum 
insured - in January last year. 

This year a so-called “super 
reversionary harms'’, which is 
calculated as a percentage of 
fiie reversionary bonus, was 
reduced from 5.5 per cent to 5 
percent 


MPs summon PIA again 


By Affeon Smith 

The Commons committee 
examining financial regulation 
has summoned, the chairman 
and chief executive of the Per- 
sonal Investment Authority, 
the new watchdog to protect 
private investors, for a further 
session of questioning. 

In a move that intensifies 
pressure on the regulator, 
which is already facing doubts 


about its future, the Treasury 
committee will take evidence 
from Mr Joe Palmer, PIA chair- 
man, and Ms Colette Bowe, 
chief executive, at the end of 
this tprc pt h 

Mr -John Watts, the Conser- 
vative MP who. chairs the 
committee, said the MPs 
wanted to go over with the PIA 
same of the points that had 
been raised by other witnesses 
questioned since the authority 


first gave evidence early in 
March. 

At the initial session the 
authority faced scepticism 
from MPs over its plans for the 
admissions process and for 
its .ability to monitor its man- 
boa. 

Some committee members 
were dissatisfied with the 
authority’s responses, but 
want to give it a chance to 
sound more convincing. 


AEGON Af.lt* The Hague 
FINAL DIVIDEND 1993 

AEGON offers its shareholders the right to elect to receive the final dividend wholly in 
cash or wholly in stock to be paid-out of the tax-free paid-in surplus or. If so required, 
out of net income. 

Shareholders are required to -mate their selection for cash or stock prior to the Annual 
General Meeting of Shareholders (AGMS). Prior to the polling of shareholders, 
AEGON N.V. will announce the relative value of the cash and stock dividend options, 
along with an indication of toe stock fraction. - 

tk<, value of the final proposal for the cash dividend will be that which is announced at 
the start of the period of the choice. The value of the final proposal for the stock 
dividend will be in line with the value indicated. The stock fraction may deviate from the 
indication as a result of changes^ the stock price. . 

Tfc- 01-0 nosed final dividend 1993 in cash is NLG 2.85. to view of AEGON's strong 
capital base, the value of the final cash dividend 1993 wiH be 2% to 5% higher than the 

final dividend in stock. . 

if shareholder whose shares are held in custody with 9 bank, does not indtarte a 
if any share within the period of choice, the bank will automatically 

S^MSTstock dWldeSsharee which are hot held In custody, and for which no 
fo?G^h or stock is indicated, will automatically receive the dividend «n cash. 

Time schedule final dividend 1993: 

Start of period of choice. 

End of period of choice. 

Final dividend proposal. Stock fraction will be determined; 
total cash dividend will be that as announced on 31 March. 

Annual General Meeting of Shareholders; 

Approval of final dividend proposal. 

Ex-dividend quotation of AEGON shares. 

Trade in dividend coupons to obtain rounded numbers. 

Payment of dividend. 


S April 1994 

10 May 1994 

11 May W94 


13 May 1SS4 
13 through 19 May 1994 
25 May 1994 


„ are reauested to indicate on their choice for dividend in 

Holders of common amre bro k er , to N.V. Nederlandsch Administratis- en 
shares, through their oan ^ ^0, 1017 BZ Amsterdam, The Netherlands. 

Trustkantoor (Nedam Truro, dividend are requested to pass on their choice, 

SIS! IfilSK P^Spal m* agent ABN AMRO Bank N.V. 

IX above dividend payment procedure does not appiy to holders of New York 

Shares. 

The Executive Board 


Ihe Hague, 31 March, 1994 
50 Mariahoeveplefo 


^EGON 


Heseltine 
defends 
tax on 
power 

Gas and electricity prices “are 
ooming down and will continue 
to come down", Mr Michael 
Heseltine, trade and industry 
secretary, said yesterday, Ivor 
Owen mites. 

Mr Heseltine decided that as 
head of the department be. 
rather than Mr Tim Eggar, the 
energy minister, should take 
the lead role in trying to limit 
the political damage caused by 
the imposition of 8 per cent 
value added tax on domestic 
fuel which took effect yester- 
day. 

Mr Heseltine accused opposi- 
tion parties of spreading “scare 
stories” about energy prices. 
He said that since 1986, when 
the gas industry was priva- 
tised, domestic gas prices had 
feUen by 23 per cent in real 
terms. Domestic electricity 
prices had (alien 6 per cent in 
real terms in the past two 
financial years. 

Coal-fired power 
stations to close 

National Power is closing three 
to five coal-fired power stations 
in the nest 12 months the loss 
of 270 to 410 jobs and mothball- 
ing three oil-fired generating 
units immediately. 

It is closing Rugeley A, in 
Staffordshire, Skelton Grange, 
in Leeds, and WiOington A, 
near Deity from September 30. 
It expects to close Aberthaw A, 
south Glamorgan, and Usk- 
mouth, Gwent, at the end of 
March next year. It has moth- 
balled one oil-fired unit at each 
of Pawley, Southampton, Lit- 
tlebrook. Sent, and Pembroke, 
Dyfed. 

• British Coal is to stop main- 
taining Wearmouth pit after 
two companies withdrew ten- 
ders to resume production 
there. The pit was dosed last 
year. 

Move for SizeweD 
public inquiry 

County councillors are set to 
force a public inquiry over 
plans for a Size well C nadear 
power station in Suffolk. 

They are being advised by 
Mr Edwin Barritt, the county 
planning officer to lodge a for 
mal objection to the £3.5bn 
development proposed by 
Nuclear Electric, the state- 
owned generator. An objection 
by either the county council or 
Suffolk Coastal District Coun- 
cil will force a pubKc inquiry. 

CD pricing report 

The Monopolies and Mergers 
Commission has been given 
until April 14 to report its find- 
ings on the pricing of compact 
discs, the Department of Trade 
and Industry said. The com- 
mission was due to report by 
last Thursday. 


Fuel groups ‘recycle’ VAT bonus 


By Robert Condne 
and Michael Smith 

Banks and b raiding" societies 
that have the regional electric- 
ity companies and British Gas 
as customers will be among 
the main beneficiaries from the 
rush to meet the March 31 
value added tax deadline. Store 
than Im householders met the 
deadline for making advance 
payments to avoid VAT on 
domestic ftieL 

Most of the companies have 
decided to deposit the advance 
payments with banks and 
buildings societies, although 
they also mentioned money 
market funds as possible desti- 
nations. Man web and Northern 
Electric were the only regional 
electricity companies to say 
they were still considering 
what to do with the extra cash. 

There have been suggestions 
that the advance payments 
could total as much as £ibn. 


Sports dubs are due rebates of 
as much as £40m after the gov- 
ernment yesterday amended 
value added tax regulations to 
bring them into line with 
European Union guidelines. 

The new regulations mean 
that playing-members' sub- 
scriptions to non-profit sports 
dobs will no longer attract 


VAT. The ruling is retrospec- 
tive to 1990, so the govern- 
ment will have to reimburse 
the clubs for the more than 
£40m they have paid in VAT 
on such subscriptions during 
the past four years. 

VAT will continue to be lev- 
ied on social memberships to 
sports clubs. 


This will not be known until 
next week because of the holi- 
day weekend. 

The companies have col- 
lected more than £663m from 
householders trying to avoid 
VAT, which was imposed at a 
rate of 8 per cent from yester- 
day, rising to 17.5 per cent in 
April next year. The £663m fig- 
ure does not take into account 
the final rush as Thursday’s 
deadline approached. 

British Gas reported by noon 
on Thursday that 2 per cent to 
3 per cent of its 18m domestic 


customers had made advance 
payments totalling £230m. Full 
returns from its national net- 
work of gas showrooms will 
not be available until nest 
week, however. 

If the intentions to favour 
banks and building societies 
materialise, it will mean that 
much of the money will be 
“recycled”. 

Most consumers withdrew 
funds from hanks or building 
societies to make the advance 
payments, which they hope 
will give them an effective 


yield greater than the rela- 
tively low rates on offer for 
savings. 

Seeboard noted that its deci- 
sion to deposit in building soci- 
eties the £64m it received from 
115,000 customers by Wednes- 
day night meant that it 
was "effectively returning" the 
capital. 

Most electricity companies 
say the extra interest earned 
will be used to cover the 
administrative and data pro- 
cessing expenses associated 
with the Imposition of 
VAT. 

Scottish Power will donate 
the extra interest it receives to 
groups "who have been disad- 
vantaged by the introduction 
of VAT on fuel". 

Midlands Electricity is to 
donate £500,000 to Neighbour- 
hood Energy Action to fund 
energy-efficiency projects for 
low-income households in its 
area. 



A JOINT STOCK COMPANY - FORMERLY A BAfSK OF NATIONAL INTEREST 
REGISTERED OFFICE: GENOA. VIA DANTE NO. 1 - HEAD OFFICE: MILAN, PIAZZA COROUSK) 

CAPITAL: L 800,000,000,000 ■ RESERVES: L 370,000,000,000 

Roglsured w»i Genoa Coin. In th* Compares RagUur under No. 32 and In the Banks Reactor ureter No. 2 
GracUo ttaOano Banking Group, registered ki the Banking Groups RngWer wnti Code No. 2008.1 

CALLING OF THE ANNUAL GENERAL 
SHAREHOLDERS MEETING 

The shareholders of Credito Italiano are called to attend the Annual General Shareholders Meeting to be 
held on April 14, 1994 at 3.30 p.m. in the “Centro Congress! - Expo - Porto Antico” in Piazza Cavour, 
Varco Mandraccio in Genoa. If necessary a second sitting will be held on April 16. 1994 at the same ad- 
dress and at the same time, to discuss and debate upon the following 

Agenda 

1) The reports submitted by the Board of Directors and by the Statutory Auditors. Presentation of the 
balance sheet as at December 3 1, 1 993 and approval of the relative resolutions. 

2) Authorization to be granted to the Directors - following the repeal of Royal Decree Law No. 15 1 1/1926 
- to assign to the Legal Reserve for the 1994 financial year, only that amount envisaged by Article 
No. 2430 of the Italian Civil Code, and to transfer the remaining sum to the Statutory Reserves. 

3) Appointment of the Board of Directors after having resolved upon its number and resolution as lo its 
annual emoluments, as per Article No. 27 of the Company's Articles of Association. 

4) Appointment of the Board of Statutory Auditors and of its Chairman, and resolution as to their annual 
emoluments. Appointment of two Alternate Statutory Auditors. 

5) Resolution as to who to appoint to audit and certify the Company's balance sheet and the Group con- 
solidated balance sheet for the three (3) year period running from 1995 to 1997. 

All shareholders who possess ordinary shares may attend the meeting, providing that they are listed in the 
Shareholders Register, and that they have deposited their shares with any Credito Italiano branch or with 
Monte Titoli S.pA, at least five business days before the date scheduled for the Annual General Meeting. 

THE BOARD OF 
DIRECTORS 

Shareholders are courteously invited to arrive well ahead of time, so as to expedite entrance formalities 
and consequently ensure that the meeting will start punctually. 

Advice of the calling of this Meeting has been given to Euroclear, CEDEL and Deutscher Auslands 
Kassenverein AG, so that (hey may in (urn, promptly notify their members. 


. % 







FINANCIAL TIMES WEEKEND APRIL 2/APRIL 3 1994 


FINANCIAL TIMES 


Number One Southwark Bridge, London SEI 9HL 
Tel: 071-873 3000 Telex: 922186 Fax: 071-407 5700 


S hanghai, in the spring of 
its economic transforma- 
tion, appears to be con- 
founding even the most 
determined optimists. Few 
predicted it would move quite so 
last in re-establishing Itself as a 
financial centre magnet for for- 
eign investment. 

After an uncertain start in the 
1980s Shanghai's almost passionate 
embrace of the marketplace is pal- 
pable. The opening on Monday of an 
interbank currency market is yet 
one more Indication of the rapid 
steps being taken towards restoring 
the city's forme- financial status- 
indications that the Shanghai Secu- 
rities Exchange will soon allow for- 
eign brokers unrestricted member- 
ship, tints freeing them from the 
obligation of trading through local 
counterparts, is another sign of 
progress towards realisation of the 
city's dream of becoming first a 
national and then an international 
financial trading post 
All the more remarkable, per- 
haps, is the speed of the city’s 
recovery after years of relative 
decline. This slide in its fortunes 
owed much to Beijing's decision to 
keep Shanghai, with its history of 
destructive radicalism during Mao's 
Cultural Revolution between 1966 
and 1976, on a tight leash, while 
allowing free rein to the southern 
regions adjacent to Hong Kong. 

As a consequence, Shanghai’s 
once virtually un challenged status 
as China's in du st rial and exporting 
powerhouse was gradually eroded. 
Between 1978, the year China ten- 
tatively opened its doors to the out- 
side world, and 1992-93, its contri- 
bution to national exports declined 
from 30 per cent to 7 per cent. 

In 1985 it surrendered to neigh- 
bouring Jiangsu province its cov- 
eted status as the regional centre 
with the greatest absolute value o£ 
industrial output Like an oriental 
Gulliver, Shanghai was being stran- 
gled. But Shanghai's fortunes 
changed in 1992 when ailing senior 
fcfldpr Deng Xiaoping, anxious to 
ensure his economic reforms were 
consolidated before he died, ordered 
that the shackles be removed. 

The enterprising Shanghainese 
needed little enco rrrag eragnt to do 
what comes naturally to them - 
making money. Although substan- 
tial obstacles remain - such as a 
crumbling infrastructure after 
decades of neglect, ana an archaic 
hanking system unable to meet the 
demands of a modem economy - 
municipal officials make liberal use 
of superlatives to describe their 
ambition to transform Shang hai 
into the "dragon head" of China’s 
economic revolution. 

Shanghai’s vice-mayor Xu 
Kuangdi likens the future roles of 
■Shanghai and Hang Kong to those 
of complementary players in a "Bei- 
jing Opera”. Hong Kong will con- 
tinue to be a conduit between China 
and the countries of South East 
Asia, while Shang hai will form a 
“golden highway” between “China 
and the rest of the world”. 

Mr Xu would seem to have a 
point about Shanghai 's role when it 
comes to markets - whether equi- 
ties. bonds, commodities' futures or 
currencies. In scarcely more than a 
year Shanghai's markets have 
undergone extraordinarily rapid 
development 

The city is home to the country's 
three dominant commodities’ 
futures markets - petroleum, cere- 
als and metals. The last of these is 
now the world's third largest metals 
exchange and is beginning to influ- 
ence trading in London and Chi- 
cago. Trading volume on the Shang- 
hai metals exchange soared to 
Yuan388.9bn ($44.7bn) In 1993 
from Yuan48.8bn after opening 


Saturday April 2 1994 


Back to go, 
painfully 


Few at Christmas predicted that 
the world’s financial markets 
would look as shaky as they now 
do at Easter. Yet there is at least 
one important respect in which 
the unsettling behaviour of the 
markets gives grounds for hope. 
The successive squalls that have 
upset bond and equity prices, cul- 
minating in Wall Street's nervous 
slide this week, are partly a reflec- 
tion of a healthier global economy. 
Bond markets always turn when 
the accelerating pace of economic 
activity starts draining liquidity 
from the system. Investment in 
inventory, plant and machinery 
then takes priority over the claims 
of portfolio investors. 

This is certainly true of the US, 
where business investment Is 
buoyant and the economy is set to 
grow this year at between 3 and 4 
per cent The UK is following at a 
more sedate pace. But part of the 
global bond market shakeout has 
been to do with the growing per- 
ception that growth is reaching 
hitherto stagnant parts of the 
world. Surveys of business confi- 
dence in continental Europe 
reveal unexpected signs of opti- 
mism and economists are upgrad- 
ing their growth forecasts for 1994. 
Even in Japan, where real gross 
national product contracted mar- 
ginally in 1993 and business 
investment continues to fell, there 
is a bint that an economy which 
seemed poised for serious defla- 
tion may now have bottomed out 

It looks at first sight like a 
return to normality after a linger- 
ing recession which was induced 
in large part by the lending 
excesses of the 1980s and by the 
strains of German unification. Yet 
to call this normality would be 
going too far, because the unusual 
financial conditions that prevailed 
in the recession continue to affect 
the behaviour of capital and 
credit 

We have lived through a period 
in which the US Federal Reserve 
has engaged in a gigantic and 
astonishingly successful exercise 
in rigging the markets in order to 
recapitalise an American banking 
system shattered by bad debts. 
This involved maintaining 
short-term interest rates at artifi- 
cially low levels, which precipi- 
tated a tidal outflow of dollars 
from bank deposit accounts into 
mutual funds and other longer- 
term investments offering scope 
for higher returns. 


Greenspan has to keep two sepa- 
rate and very different constituen- 
cies happy. The first consists of 
sophisticated professional inves- 
tors, many of whom believe that 
the Fed has been slow to respond 
to a build-up in inflationary pres- 
sure. After growth at an annual- 
ised rate of 7 per cent in the final 
quarter of last year a federal hands 
rate of 3% per cent looks tame. 
The average federal funds rate 
since 1979 has been 3 V< per cent - 
and that average includes periods 
of very tight policy. 


Neutral stance 
Since his decision to raise inter- 
est rates in February. Fed chair- 
man Mr Alan Greenspan has indi- 
cated that it is time to return to a 
normal or ‘neutral’ monetary 
stance. Yet the consequences of 
his earlier policy make it difficult 
to return to normal without caus- 
ing markets to slide. In effect Mr 


Inflationary threat 

Such investors would have been 
happier to see the Fed move 
swiftly to short-term rates of 4% 
or 5 per cent instead of moving 
from 3 to 3% per cent in quarter 
point steps. Yet there are fears 
that less sophisticated investors in 
the mutual funds - the second 
constituency - might then panic if 
they discovered, in any resulting 
market fall, that stock market 
investment is not protected by 
deposit Insurance schemes. Small 
wonder Mr Greenspan has pur- 
sued a gradualist course. Yet the 
consequence is that the profes- 
sionals become more nervous. If 
the inflationary threat is real, 
short-term rates of 3% per cent 
look low for this point in the 
cycle. Hence much of the recent 
market turbulence. 

The problem for Europe is that 
the impact of an overshooting US 
bond market is benign when 
prices are moving up, but threat- 
ening when they are moving 
down. Monetary policy in conti- 
nental Europe has been too tight 
over the past 18 months or so 
when US capital baa spilled over 
into European capital markets. 
Yet that same outflow has helped 
offset the monetary squeeze by 
pushing European stock and bond 
markets higher. This enabled 
European governments to finance 
their growing fiscal deficits more 
cheaply, while helping companies 
rebuild strained balance sheets by 
raising capital. 

Now the sharp fell in European 
bond markets is, in effect, tighten- 
ing monetary policy through Its 
impact on long-term interest rates, 
while short-term rates remain 
high in real terms. Yet the Bund- 
esbank is reluctant to change 
monetary tack to offset the mar- 
ket induced tightening. This 
approach is understandable while 
the markets are still sorting them- 
selves out But if continued for too 
long it would kill off the European 
recovery. The resulting uncer- 
tainty is the opposite of a recipe 
for an immediate soft landing in 
the markets, especially against a 
background of unusual political 
weakness in Britain, Germany, 
France and Italy. Stand by for 
another squall. 


Dragon wi 


eye on its futures 


As China opens up to the world, Shanghai's 
financial markets are developing fast - 
perhaps too fast - says Tony Walker 





some 133 A and B share companies 
had been listed, up from 38 a year 
earfier. Numbers of listed compa- 
nies grew further to 177 by the mid 
of March.' . - ' 

Western securities analysts in 
Shanghai believe the gloom in .tbe 
stock market is temporary and is, in 
any case, attributable to a difficult 
learning process among investors 
unschooled in the vicissitudes of 
the marketplace. 

Mr John Grossman, chief repre- 
sentative in of the Jardlne 

Fleming securities house, says it is 
understandable that China’s.emerg* 
ing markete should be volatile, and 
he aspects this pattern to continue 
for- the next five to 10 years: 
There's tremendous risk in this 
market, but there are also prospects 
for- enormous g afo- It’s going to be 
wild.” ■ - 


T he disappointing perfor- 
mance of Shanghai secu- 
rities markets and reser- 
vations about China's 
regulatory abilities have 
hot deterred foreign banks and 
soffu ritins houses from moving to 
the city. At last count, there were 
26 foreign brokerages in Shanghai 
doaHng in B-shares - including Bar- 
ings, Jardine Fleming, Crddlt Lyon- 
nais and Standard Chartered. 
Hard-pressed officials at the stock 
joke that it seems now to 
have become the city's principal 
tourist attraction. Among a steady 
stream of high-level visitors in the 
past weeks have been Sir Andrew 
H ugh Smith, p-hairman of tiie Lon- 
don Stock Exchange. Mr Joseph 
Hari&man, president of the US NAS- 
DAQ exchange and Mr Peter Bar- 
ing, chairman of Barings. 

Not least among the attractions 
for them is the prospect of Chinese 
pension foods which, swollen with 
contributions, would seek help in 
investing vast amounts of money 
internationally. With China under- 
going such a rapid transformation 
to a market economy, and with a 
process of corporatisation of previ- 
ously state-controlled industries 
well under way, it is only a matter 
of Hm» before Chinese superannua- 
tion funds develop a big appetite for 
investment opportunities abroad. 
Hie development of Chinese mutual 
fends and unit trusts is also in the 
wind. 

■ Visits to Shanghai by representa- 
tives of the international financial 
community show that after years 
of isolation, China, and Shanghai in 
particular, is being drawn inexora- 
bly Into the world trading and 
financial system. But representa- 
tives of foreign securities houses 
also caution that Shanghai has a 
long way to go towards realising its 
ambition to rival New York, London 
or Tokyo. 

Apart from an archaic banking 
system (banking reform lags far 
behind other sectors) and lack of 
full currency convertibility, Shang- 
hai also labours under the burden 
of a primitive legal framework and 
an absence of transparency in 
financial rules and regulations. 

But foreign bankers and securi- 
ties traders believe that these 
impediments may not be a bad 
thing for the time being. “They 
shouldn't go forward too quickly," 
says Mr Crosaman of Jardine Flem- 
ing. “If they move too fast they run 
the risk of not having the regula- 
tions in place to assert control. 
Their banking system could not 
cope, for example, with vast sums 
of money flowing, in and out" 
Shanghai may have to team to be 
more patient if it is to consolidate 
its gains - but patience does not 
appear to be a conspicuous virtue 
these days in a city striving to 
regain its former glory. 


for business in May 1992. 

Shanghai’s fledgling Interbank 
market will form the nucleus of a 
national currency trading system. 
All important regional exchanges 
will eventually be linked electroni- 
cally with Shanghai, and it is hoped 
this will facilitate steps towards 

making- teft Chirnw y uan a fully 

convertible international currency. 
But progress is likely to be slow 
ahn-p a national electronic dealing 
system Is far from being in place. 

Tim city will also soon be home to 
an experimental gold evr.hangp to 
be organised by the People’s Bank 
of China, the country's central 
bank, which holds the monopoly 
over gold trading. 

Initially, the gold market will be 
restricted to enterprises directly 
Involved in the Chinese gold indus- 
try, but gradually it will be allowed 
to evolve into a gold exchange open 
to the public. Chinese consumers 
last year purchased 223 tnnnpa of 
gold jewellery, according to the 
World Gold Council, making China 
the fourth biggest market for gold 
behind the 175, India and Saudi 
Arabia. 

It is a measure of Shanghai’s 
growing strength as a financial cen- 
tre that attempts by provincial gov- 
ernments. such as Jiangsu, to estab- 
lish their own futures markets are 
tending to wither on the vine. 
Indeed, the central authorities have 
called a halt for the moment to the 
proliferation of futures exchanges 
following the near collapse of some 
and pending the drafting of new 
trading regulations. 

Shanghai officials are using the 


MAN IN THE NEWS: Mansosuthu Buthelezi 


A prickly 
bear baited 


T here are certain politically 
correct cliches about Chief 
Mangosuthu Buthelezi. 
leader of the Zulu Infcatha 
Freedom Party; be is mad; be is a 
dangerous megalomaniac; he is an 
enemy of tbe South African people; 
be fears electoral defeat and rejects 
democracy; he must be stopped. 

Given the imminence of South 
Africa's first all-race elections, 
between April 26 and 28, and the 
high hopes pinned to this great 
event of national catharsis, tew 
dare stray from the realm of the 
politically correct to question the 
truth of these labels. With the jug- 
gernaut of majority rule bearing 
down upon tbe nation, better sim- 
ply to go on believing that Buthe- 
lezi is an evil but ultimately impo- 
tent menace; then he can be 
crushed with impunity, and with no 
fear for the consequences. 

That is the reasoning which 
underpinned Thursday’s decision to 
impose a state of emergency in 
Natal province, and the black home- 
land of KwaZulu (ruled by Chief 
Buthelezi). The elections must go 
on, in spite of the opposition of 
inkathfl, which commands a large 
chunk of the electorate in Natal/ 
KwaZulu; Inkatha can be easily 
defeated because it commands no 
army; once crushed, it and 
Chief Buthelezi will disappear for- 
ever. 

Would that reality were so sim- 
ple. For Chief Buthelezi has been 
preparing for this battle - psycho- 
logically and militarily - for years. 
Since its formation as a "cultured 
movement” In 1975, Inkatha has 
worked hard to rebuild the sense of 
a Zulu nation, so strong in the 19th 
century but undermined by defeat 
at the hands of the British, the 
e masc ulation of the Zulu ehief fc and 
the fragmentation of the Zulu king- 


dom early this century. A prince of 
the Zulu royal family and an uncle 
to the king. Chief Buthelezi has 
coaxed the embers of Zulu national- 
ism into full flame, reaching a cli- 
max earlier this week when Zulu 
warriors, marching to defend their 
King, were gunned down by African 
National Congress security guards 
in central Johannesburg. Chief 
Buthelezi's ethnic message may be 
denied by the political elite, but it 
has penetrated tbe public conscious- 
ness. 

History may well condemn him 
for fanning ethnic flames which 
threaten South Africa's democracy. 
Historians will certainly condemn 
Inkatha - and possibly Chief Buthe- 
lezi, though his responsibility has 
not been proven - for operating "hit 
squads” using weapons and train- 
ing allegedly provided by Pretoria's 
security services. Irrespective of 
history’s judgement, Buthelezi is a 
reality; and he is doubly dangerous 
because he is not simply - as the 
politically correct would argue - a 
creation of apartheid whose power 
derives from apartheid structures. 

Ironically, it would be more cor- 
rect to say that Buthelezi is a cre- 
ation of the AN C. As ANC deputy 
secretary general, Jacob Zuma (the 
only senior Zulu in the ANCs top 
leadership) explained in 1992, “form- 
ing Inkatha was the ANC's idea - to 
have a political organisation to 
undermine apartheid from within". 
FOr decades, Buthelezi did just that, 
refusing to accept independence for 
KwaZulu, and rampaignlng for the 
release from prison of Nelson Mand- 
ela. But when the United Demo- 
cratic Front emerged In the early 
1980s as de facto internal wing of 
the ANC, it demonised all “collabo- 
rators", chief among them Buthe- 
lezi The Zulu leader opposed ANC 
policy on two central issues; eco- 



nomic sanctions and the use of 
guerrilla tactics to overthrow white 
rule. Today there is no political 
leader more despised by the ANC. 

Certainly. Chief Buthelezi will 
lose part of his pow er base once an 
ANC government (which will sweep 
Natal as a result of Inkatha 's elec- 
tion boycott) pays the salaries of 
homeland police, civil servants, and 
possibly the Zulu King. But the 
Zulu warriors who fought in the 
streets of Johannesburg on Monday 
were not teachers, nurses and 
bureaucrats. They came from the 
world of migrant workers’ hostels 
and KwaZulu villages where tradi- 
tion and loyalty to the King remain 
powerful forces for resistance. 

No army can hope to subdue 
every village and kraal in rural 
Zuhdand; and even if they do so 
temporarily, violence will resume 
once they leave. The risk is that the 
battles of 1994 will store up material 
for resentment and revenge for 
decades to come. 

Yet the ANC seams unable to 


resist tbe temptation to prod the 
angry bear that resides in Chief 
Buthelezi's souL They know they 
will get nowhere by humiliating a 
man whose sensitivity borders on 
the paranoid. They know that any 
attempt to trick him will backfire 
because be cannot bear to be taken 
for a “stupid kaffir", as be so often 
points out; yet they offer him con- 
stitutional concessions which look 
good but mean little, and hope he 
will not notice. And most seriously 
of all, they think he has no true 
support and can be crushed by the 
legitimate will of the majority. In 
short, for tbe ANC, Buthelezi is a 
dictator clinging illegally to power, 
with no genuine constitutional com- 
plaints and no intention to negoti- 
ate. Their conclusion: accommodat- 
ing him is not only unnecessary, 
but impossible. 

That may be true now, but It was 
not always so. Even early this year, 
the ANC could have had a deal with 
Inkatha relatively cheaply, by 
agreeing to devolve real power to 
the provinces, rather than guarding 
it at the centre. The Zulu King was 
then on the sidelines, and could 
have been assured a place as titular 
monarch of Natal/KwaZulu. by 
guaranteeing the security of royal 
lands and palaces. Only when that 
deal foil through did be enter tbe 
fr^y, increasing tension by calling 
for a sovereign Zulu kingdom and 
commanding his subjects to defend 
their nationhood. 

The chances are it is too late for a 
deal, and further violence is inevita- 
ble. Many would welcome his 
demise, in South Africa and abroad 
He has alienated almost every local 
and foreign friend he ever had His 
counter-productive propaganda 
machine has made it impossible to 
understand his policies, let alone 
defend them. He is, quite simply, in 
the way. obstructing the event mil- 
lions worldwide have waited 
decades to see, the death of apart- 
heid and the birth of a new nan-ra- 
cial democracy. And if he does not 
move, he will be removed by force - 
whatever the consequences. 


Patti Waldmeir 


city’s revival to spur the growth of 
what they refers to as its tertiary 
sector, winch includes both finan- 
cial services and high-technology 
in du strie s At the time tee 
city is sh rinking the low-technology 
state-run sector dominated by tex- 
tiles. By the year 2000 tertiary 
industries win account for 45 per 
npttf of the city's economy, against 
37.8 per cent at the end of 1993, 
according to the municipal plan. 

ha this, the municipality is being 
assisted by a surge in investment. 
much of its destined for projects in 


‘There’s tremendous 
risk in this market, 
but there are also 
prospects for 
enormous gains. It’s 
going to be wild’ 


the city's new Pudong Development 
Zone, on the east bank of tbe 
Huangpu River. 

In the first two months of 1994. 
foreign investors pledged $Llbn of 
new investment. By October, 
according to the American Consul- 
ate, 86 Tortnne 500” companies had 
invested in Shanghai, including 
McDoneD Douglas, Du Pont, Xerox 
and Coca Cola. 

In spite of Shanghai's growing 
self-confidence, however, there are 
considerable obstacles to the city’s 
almost boundless ambition. These 
include a huge knowledge gap in a 
population starved for years of con- 


tact with the outside world. Teeth- 
ing problems abound, such as rela- 
tively frequent computer glitches in 
the Securities Exchange’s suppos- 
edly stateof-the-art trading system. 
Trading surges tend to bring the 
system down. 

The markets, including securities 
and commodities’ futures, are also 
labouring under a lack of national 
regulations. Insider trading is a per- 
sistent problem, especially in the 
commodities’ exchanges, where 
some of tbe bagger players are also 
China’s monopolistic state trading 
corporations. This poses a threat to 
individual and smaller institutional 
investors who are in danger of 
being squeezed. The drafting of a 
new securities law and commodities 
trading regulations is progressing 
slowly, to tee chagrin of local secu- 
rities traders. Market managers 
recognise tee need for a confidence 
boost to lift the equities markets, 
which have been depressed since 
last year and show little sign of 
recovering. This has tested the 
nerves of local investors who have 
been deserting stocks in droves fin- 
currencies and futures. 

The Shanghai A-share market, 
restricted to Chinese investors in 
local currency, fell by about 50 per 
cent last year from a high in mid- 
February 1993. The B-share market, 
denominated in US dollars for for- 
eign investors, has also experienced 
a bumpy ride »and is well off its 
highs of last year. 

In spite of its bearish mood, the 
equities market is still developing 
fest Trading volume increased five- 
fold in 1993. At the end of last year 



A two day course on communicatin g 
more effectively in the lang uag e of finance. 


The course is designed and run by Portfolio English in 
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It uses many aspects of Europe’s Business Newspaper to improve 
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Portfolio English i _ 


For more information please call, or fax 10 : Dirk Van Nieuwenborgh, Chateau 
C6ran. 866 B-4900 SPA Belgium. Tel: (32) 87/77 41 64. Fax (32) 87/77 36 29. 


Name. . 

Company 

Street 

Postcode 

Telephone 

i 


Town 


R^rmj , 


i 




Venge; 

Union 




1 

U *4 | # - . 


■-i : J i'l;. j/* 


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Shoppers in the line of fire 

* fiw- rt,-, ~ -- ■ . * 


I f it were not for the British con- 

bTKj S°L 2/S Emma Tucker and Philip Coggan on effects of UK tax rises 

nuiitriAnla'- W«. , *™T U -**B 


jb i_j- **- wyoumus oy 

. ^ck to recovery ’owSmSt SSj® ^ ***» 88 ^o^eowDers with 

so- But this^weekend, ' ““rtsafa re**™* annually switch 

penaSSto tLfr rffrL?* 7 to ^ aHn ® tower asymeoits. 

Building societies r^ 8 ®} 1 * 8 * , conaroing impetus to growth 

writtento mortgage htildJL ^ ady £rom inter6st rate cuts allows the gov- 
kg S *> «gue that the reco^ry 


UKeconomy: looking tothe consumer 


the emTVT,^£!f ,ttS nse at 
tS SEi* ‘^ ra 1,6011,36 of a cut in 
Paymeuts; VAT 
m consumers' gas and 
gWcrty bills from yesterday; i£S 
gtehome pay will also drop; with 
“S^sed national insurance contri- 
aid a reduction in thema£ 
ned couple s allowance. 

.iJSiSt®? **“ <*anges win raise 
about £8.4hn m iS9«6.«rij perS 

ofgross amnestic product. Over the 

£2? 7&a *' *** raise 

a total of between £X5bn and £l7bn. 

-Sf <* TP pound on 

the standard rate erf income ” 

Mr Kenneth ClaSe; the chancellor, 
says the tax increases - introduced in 
me last two Budgets - are essential to 
reduee the public sector borrowing 
requirement, which is expected to 
reach about E48hn in 1993-91 The gov- 
ernment believes the present PSBR is 
enormously high and has to be 
reduced in order to regain control 
.over public finances. Moreover it 
argues that a low PSBR would 
. encourage confidence. But with recov- 
ery still fragile. Is Mr Clarke wise to 
tinker, with : what is currently the 
economy's main driving force? 

A particular feature of the recovery 
is that it has been almost entirely 
consumer led. Since early 1992, con- 
sumer spending has risen by an aver- 
age of 2.7 per cent a year, while gov- 
ernment expenditure and private 
investment - the other main compo- 
nents of demand - have barely 
increased. 

In contrast, the recovery after the 
recession of 1974-75 was led by strong 
export growth, while that of the early ■ 
-1980s was - at least Initially - spurred 
by arise- hi capital sp ending . 

This time, consumer spending has 
been encouraged by a fen In mortgage 
interest rates* from a peak of 15.4 per 
cent in 1990 to about 7.6 per ' cent 
today. The benefit of lower rates is 


can withstand tax increases. This con- 
clusion is aba rod by the majority of 
the Treasury's six ‘Wise men”, or eco- 
nomic advisers, in their latest report 

Several City analysts agree with the 
Treasury panel. Mr Kevin Gardiner, 
UK economist at investment bank 
Morgan Stanley, says some of the tax 
Increases, such as on tobacco and 
vehicles, have already been intro- 
duced, while others - the freezing of 
tax allowances, for instance - wffl not 
reduce nominal take-home pay. 
“Roughly half the fiscal pain [from 
hi g her taxes] is either behind us or 
will go unnoticed,'” he says. 

Mr Gardiner predicts GDP growth 
of 2J3 per cent tfna year, compared 
with the Treasury’s forecast of 2.5 per 
cent and with L9 per cent in 1993. He 
forecasts that, without the tax 
increases, consumer spending would 
have grown by up to 4 per cent this 
year, but he still expects a healthy 2.7 
per cent rise. 

Similarly, Lombard Street Research, 
part of discount house Gerrard and 
National, concludes: “Concerns [about 
the ta x increases] seem exaggerated, 
given that the increases will amnimt 
to only l per cent of personal dispos- 
able income in 199495 and about 0.2 
per cent of personal wealth, and have 
been known about for a year.” 

There is some evidence to support 
the argument that the tax increases 
-are not coming as a shock to consum- 
ers. They appear to have started scal- 
ing back their spending already: the 
annual growth rate in retail sales 
sapped to 25 per cent in February 
from 3.7 pesr cent the previous month. 
V Even if the tax increases do have an 
effect, consumers could keep spending 
at the . same rate by increasing bor- 
rowings or by running down their 
savings. 

There are three Incentives far con- 
' sumers to reduce their savings: falling 
unemployment, which reduces the 


■ . Annual rates f£bn, currant prices} 

■I 7 *?- Nef exports . 

■ '• • fsRp^.vdnusinBporta* 

4 800— Aegcdtw value) 


SOB'-s- 


GDPand Its 4 components 


,40ff 



aoo^- 


.280-t-. 


mo — 



-Govwnrherfi 
Jt'HraxnpfeR.. 
■ fawds&pent"-'-' 

.XHTnem 
& stocks*. ■ 


J,Cera*Bw* 

fitoMndttUDB 


M 


01, 198&.IC0 febndfeni l9flo prtsi*jf ' 
. .-•« • ■— t2Q 

■•‘_.«DPktdtow.'. 


— 110 
•ri-W 

— tflpr 

— 'as- 

—r 60 . 


8* 


Ian Davidson argues that the UK has averted one 
European crisis, but a showdown is inevitable 

Vengeance of a 
Union scorned 


need for precautionary saving; lower 
nominal interest rates; and subdued 
inflation. The savings ratio - personal 
saving as a percentage of disposable 
incomes - dropped to 10.2 per cent in 
the last three months of 1993, from II 
per cent in the previous three months. 

It may fall further; Mr Adrian Coo- 
per, UK economist at broker James 
Capei predicts that by 1995 the ratio 
will have fallen to about 8 per cent 
That, he reckons, will be in line with 
“the equilibrium savings ratio in peri- 
ods of low inflation, snch as the 
1960s" 


... gdp *: 

*- *•% Cqneuraers expenditure' . 
Government consumption - 
Jrtseabnwd; : • • > 

. (I^OBto^towwaonaaMcta*' 

Source; MsBtnwrt : 


But not everyone shares the govern- 
ment’s confidence that consumer 
spending will withstand the tax 
increases. Professor Wynne Godley of 
Cambridge University, a -dissenter 
among the six wise men , says: “This 
is a very feeble recovery. The balance 
of payments is weak, unemployment 
is still hi gh and output is unimpres- 
sive. If it was not for the falls in 
unemployment, you would not have 
much sense of a recovery.” 

Similarly, Mr Peter Warburton, at 
Robert Fleming Securities, says it is 
doubtful that growth has gained 


enough momentum to resist the fiscal 
tig h te ning : “If interest rates had been 
cut earlier in the year, then we could 
perhaps have started off on a positive 
Coding. Now we are facing the most 
unpleasant change In taxation for 13 
years, and negative momentum is lia- 
ble to build.” 

Nevertheless, even if the tax 
increases do depress consumer spend- 
ing more than the government might 
hope, there could be long-term benefi- 
cial effects. In the past, surges in UK 
consumer spending have sucked in 
imports, leading to a deterioration in 
the balance of payments, a fell in ster- 
ling and eventually a rise in interest 
rates. 

The UK’s trade position is already 
deteriorating. The current account 
deficit widened to £2.6bn in the last 
three months of 1993 from £LSbn in 
the previous three months, as earn- 
ings from services and fiwanrini trans- 
actions proved insufficient to compen- 
sate for the deficit in “visible” goods. 

Mr Andrew Sentence, of the London 
Business School, says: “Consumer 
spending now absorbs a much higher 
share of GDP in the UK than in other 
countries, reducing the proportion of 
national resources devoted to invest- 
ment If this imbalance is redressed, 
the UK will be able to maintain a 
higher rate of investment without bal- 
ance of payments or inflation prob- 
lems. That should put the economy in 
a better position to sustain growth 
over the medium term.” 

There are some tentative signs that 
investment is emerging from the 
recessionary doldrums. Gross domes- 
tic fixed capital formation increased 
by 2.5 per cent between the third and 
fourth quarters of 1993, the fastest 
quarterly increase for five years. 

The risk, which cannot yet be ruled 
out, is that Mr Clarke has got his 
ofllrulatiOTis wrong - and hag stifled 
consumer spending to such an extent 
that the recovery will stall But the 
pick up in investment offers some 
encouragement to the government 
that the tax package win amount to a 
gentle application of the brake, allow- 
ing the economy to steer a smoother 
growth path. 

Personal tax checklist. Page HI, 
Weekend FT 



f /r Jrihk Ma jor’s 

CVeT 

e;3b. ■ 

L*1ifre f ,- JStafTbpeair 
UmtmUms averted: aaeHous 
aids iii Earapel Buttbis is at 
best drily a temporary brace, in 
the UtCs foi^-nmnihg tattle to 
resist and, if pos^Me,' reverse 
the trend to closer political 
integration in Europe. The 
prime, mfrrfsterhas abandoned 
this particular attempt to-' 
reduce tte.to^.af-iaqadtty 
voting in Erni^ie; tat his gov- 
ernment imypmnHT*^ 

to the abjective of a quasi-fed- 
eralist Union which is sup- 
ported by most member states. 

What has happened this 
week has settled nothing m 
Britain, and settled nothing in . 
Europe; -it is only a short-term 

postponement of a showdown 
between the UK and its Euro- 
pean partners which 1 a steadily 
becoming more inevitable. ■ 
Such $ showdown is already 
lying in. wait, is the Ihter-Gov- 
ernmental Confereuce sched 
Bled for 1906. Mr Douglas 
Hurd, UK foreign secretary, 
tries to minimise 7 the signifi- 
cance of tlfis week’s capitula- 
tion, by implying that it could 
be reversed in 1996. In reality, 
the central aim, of the ZGC, in 
the grin ds of .most member ' 
states, will be to strengthen 
political integration. It is there- 
fore bound to be a scene of 
confrontation- between Britain - 
and its partners. 1 
Moreover, by then the politi- 
cal stakes will have , been 
raised by another order of mag- 
nitude, because the west Euro- 


peans. Will be wrestling with 
the political implications of 
expanding their Union into 
central tad' eastern Europe. 
Ltadm ctahns to frefave that 
enlargement erf the Baton will, 
or at least should, turn it into 
a^ looser; more inter-govern- 
mental type of grouping. But 
most of the other members 
maintain that a larger Union 
must became more integrated, 
and no doubt the candidate 
countries in eastern Europe 
will agree with them. 

Chancellor Helmut Kohl has 
made dear. that he will be 
pressing for the opening of the 
European Union to the east; 
and he has explicitly derided 
the Idea that such an enlarged 
Union should be turned into a 
loose free trade area. 

Paradoxically, the confronta- 
tion over blocking minorities 
Mew up precisely because the 
- member states had wanted to 
-avoMLit la the spring of 1992, 
it was argued, by the Commis- 
sion among others, that the 
prospective negotiations to 
expand the EC, through the 
admission of the four Euro- 
pean Free Trade Association 
countries, would require a Mg 
revision ofthe dedskm-inaldng 
-arrangements, including 
national voting weights and 
majority voting rules. 

Decisionmaking was already 
difficult enough in the Commu- 
nity of 12; so the rules had to 
be adapted to make sure that it 
did not become more difficult 
in a Community of 16. A sec- 
ond reason was that existing 
voting weights were Skewed in 


favour of the small members; 
Germany, for example, has 200 
times the population of Luxem- 
bourg, but only five times the 
number of votes in the Council 
of Ministers. Since all the Efta 
candidates were small, enlarge- 
meat would make this bias in 
favour of small countries even 
worse. 

But by the time of the regu- 
lar European summit in the 
summer of 1992, governments 
were having second thoughts. 
They had been deeply shaken 
early in June, when the Danish 
electorate turned down the 
Treaty of Maastricht So when 
the 12 leaders met later that 
month in Lisbon, they were 
doubly anxious to avoid any 
bruising new arguments over 
politically sensitive issues. 
They announced that this 
pri) a rgpmp TTf could fo h *» place 
without any revision in the 

principles of 

majority voting 
dr the future of 
the. institutions. 

By impheatioro, 
these questions 
would be back 
an the agenda 
for the follow- 
ing enlarge- 
ment, fakirs’ in 
the countries of 
eastern Europe. In the mean- 
time; new members from fifta 
would have the same voting 
weights as corresponding exist- 
ing members, and the required 
majority thresholds would be 
adjusted, mechanically. 

Like mast decisions barn of 



Unreconciled: John Major’s government remains opposed to the objective of a quasi-federalist Union 


tkm to have taken. The 12 were 
setting up a future situation 
which would be difficult to 
change. They seemed to 
aagiwii* that the smal l coun- 
tries, which would total U of 
the foture 16 members, would 
willingly give up their voting 
weight advantage, without 
compensation; and they 
ignored the fact that six of 
■ them would 
have to submit 
this sacrifice erf 
national advan- 
tage to a refer- 
endum. For the 
sake of a quiet 
life now, the 12 
were storing up 
trouble for the 
future. 

Even for the 
short term, the 12 were taking 
a risk. Such an imbalance in 
voting power between large 
and small countries could 
undermine the legitimacy of 
the whole system, which is 
already under challenge in sev- 
eral member states. At one 
panic, this was a stupid pom* extreme, the UK, Germany and 


A voting 
Imbalance 
between big and 
small states could 
undermine the 
whole system 


two small countries, mastering 
mare than 40 per cent of the 
population of the Union, could 
he outvoted by the rest; tat 
eight small countries, with 
barely 12 per emit of the popu- 
lation, would command a 
blocking minority. The original 
small-country bias was part of 
the founding bargain between 
the six Hy p-mind pd states; but 
the imbalance is becoming 
more acute in a Community 
where members are less 
like-minded, and some (like 
Britain) not committed to the 
underling premiss of integra- 
tion at aZL 

If the voting weight bias 
favouring the little countries is 
ever to be reversed, the reform 
will obviously have to be paid 
for; and the currency of pay- 
ment will probably have to be 
metre integration. That is the 
challenging position, as 
sketched out by the Belgian 
government if political legiti- 
macy is said to reside essen- 
tially with the nation, states 
and the sovereignty Of patimml 
parliaments, then this feet 


must be reflected in the (rela- 
tive) equality of the nation 
states in Brussels; but if it is 
claimed that population 
counts, then this feet must be 
reflected in the democratic 
legitimation of the Brussels 
decision-making process. 

In theory this week's com- 
promise settlement should 
dose off until 1®6 the danger 
of a crisis over the institutions 
of the Union. But that crisis 
may yet break in through 
another door, if the German 
government lives up to its 
declared determination to 
hurry the opening of the Union 
to the countries of eastern 
Europe. Clearly they will not 
be ready for fall economic 
membership of the Union for 
some years to come. But if Ger- 
many presses for a different 
form of political membership, 
then it w£D become impossible 
to resist the reopening of all 
the issues of decision-making 
and voting weights and institu- 
tional legitimacy, which many 
had thought had been quietly 
put off to another day. 


NHS draft governance 
codes not adequate 
on internal auditors 


ndretP Chambers- 
tt -pike reports Mr 
lands, the new chief 
of the National 
rice, as stating that 
xjdes on corporate 
» published hy the 
xve, have receded 


saKhpaypnt 

treatment", 
ate to point 
tute of Inter-- 
was diaap- 
ain elements 

JK applauds 
3ger internal 
res that Mr 
ids, head of 
* executive* 

reoomniend- 
auditors be 


;y yi/uAv**/ 

alificatkms 
»nt empha- 
gure good 
5- focusing 
reporting' 
al control, 
the other 


objectives of internal control 
which fall within the much 
broader approach covered by 
internal auditing. . . 

The HA-UK firmly believes 
that NHS internal auditors 
who hold the Institute’s MSA 
and QiCA qualifications are 
better equipped to fidfil their 
role. These qualifications pro- 
vide the hotter with the know- 
ledge required to report on the 
rafale system of In t e rn al con- 
turf and not solely on its finan- 
cial aspects. . ... ■ ■ 

The NHS is responsible for 
15 per cent of public s pendin g 
- mismanagement of these 
funds, or unacceptable risk- 
taking, Is a cause for public 
concern. Properly qualified 
Internal auditors play a vital 
role in ensuring that these 
risks are miniinised. 

Andrew Chambers, ■ 

ch&rman, professional - 
standards and 


SA-DK 
ISABbmBeMews, 

88 Qapham Park Road, 
London SW4 fSX 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed and nor hand written. Please set fax for finest resolution 


T , p.th a] move for small business 

FromMrlesHe Thom. 

Sr, The debate rages on in 
your editorial ("Late payment 
of bills", March 28) with regard 
to the need for legislation to 
assist toe cash flow of small 
and many medium-sized busi- 
nesses. 

It is perhaps likened to £32- 
fog toe proverbial “cat”. Why 
can MPs and others who lobby 
not see that this action will 
only accelerate Use demise of 
the' small business? All the 

major customer will do is use a 
supplier (accepting; of course, 
that some suppliers might just 
have an added “unique” prod- 
uct advantage built in) which 
tends to be more lenient with 
regard to cash collection. The 
dog-eat-dog syndrome will 
ensure that there are many 
other willing suppliers happy 
to fill a hole left by a conscien- 
tious objector. 

As for balance sheet pohcmg, 
a simple window dressing eser- 

cise at the year end will 
resolve that The solution lies 
amply in ensuring that ade- 
quate, skilled resources are 
applied to the management of 
assets. 

Until then, 1 fear, toe giants 
will continue to hold all toe 
cards. 

Leslie Tbain, 
measurer, 

Clifford Chance, 

200 Aldersgate, 

London EC1A 4JJ 

Social clause sai 

From Mr Peter Madden. 

Sir, Christian Aid’s experi- 
ence in more 70 develop- 

ing countries is that labour 
standards could indeed be an 
excuse Hex a new protectionism 
(“Workers’ rights and free 
trade”, March 28). But allowing 
for a ftee-fbpaU would he just 
as bad. Global economic inte- 
gration with a competitive 

eguard for Gatt t 

devaluation of standards could 
leave workers tn both north 
and south worse off 
Unempkyment in industrial 
countries is already increasing 
the pressure to adopt unilat- 
eral protectionism. Integrating 
a social clause into the General 
Agreement on Tariffs and 
Trade could be toe best safe- 
guard of a rules-based multflat- 

rading system 

eral trading system. 

By addressing workers' 
rights at next month's Gatt 
meeting governments will also 
be addressing the concern of 
consumers who increasingly 
want to know that what they 
buy is “fairly traded". 

Peter Maddox 

Christian Aid, 

VO Bon 100k London SEl 7RT 


AGM video 
welcomed 

Pram Mr Peter J Mugridge. 

Sir, As a partially deaf per- 
son and a shareholder, 1 have 
much appreciated the umov* 
turn by Hanson pic to make a 
video of its AGM which is dis- 
tributed free to any share- 
holder asking for it 

This is exactly what I have 
been waiting for and I hope 
other companies follow Han- 
son’s lead. For the first time 
ever, 1 was able to follow the 
events perfectly, which previ- 
ously 1 found difficult even 
when in attendance. 

1 hope this innovative idea is 
here to stay and I would like to 
add one thing. All chairmen 
should try to emulate Lord 
Hanson's diction and delivery, 
slow and dear, a real compli- 
ment to his audience, 

Peter J Mugridge, 

74 MUes Road, 


Surrey KT19 SAD 


Phone companies need Britons 
to speak more to each other 
at home, says Andrew Adonis 

Money out of 
chatterboxes 


" The problem with television is 
that people must sit and keep 
their eyes glued on a screen ; the 
average American family hasn’t 
time for it’' 

S o said the New York 
Times in 1989; the rest 
is history, in the case 
of telephones, however, 
ingrained habits and percep- 
tions about the cost of calls 
have proved remarkably 
enduring in the UK and much 
of Europe. 

The typical home telephone 
in the UK is used for less than 
four minutes a day, according 
to figures released by British 
Telecommunications this 
week. In Agatha Christie's 
detective novels, set in inter- 
war England, the phone was in 
the. hallway, used for the 
imparting of brief, telegram- 
length messages. Sixty years 
later there are far more 
phones, bnt for most people 
they serve the same function. 

There is a marked sexual 
bias to domestic calling pat- 
terns: men make twice times 
as many work-related rails as 
women. But women make 
twice as many calls to rela- 
tives and run up larger phone 
bills - except among the 
under-24s, where BTs figures 
show that it is men who spend 
most on social calls. 

The statistics suggest that 
increasing the usage of the 
telephone line should be the 
overriding goal for telecoms 
companies, and a Car higher 
priority than 
seeking to ont- 
wit each other 
in battles with 
regulatory 
authorities 
over pricing 
and competi- 
tion issues. 

The modest 
use of home 
telephones 
affects not just 
the profits of 
telecommunica- 
tions compa- 
nies. It also has 
a vital hearing 
on the pros- 
pects for the 
much-touted 
‘information superhighways", 
intended to provide a plethora 
of new telecoms services in the 
home. 

If the British home phone 
were engaged for 14 minutes a 
day instead of four, BT could 
spend £lbn a year on building 
a UK-wide fibre-optic super- 
highway, lose a quarter of its 
domestic customers to Mer- 
cury and the fledgling cable 
companies offering telecoms 
services, and still turn in 
larger profits than today. 

Such thinking explains why 
BTs forthcoming advertising 
campaign, to be launched next 
month, will focus on two mes- 
sages: the real cost of a phone 
call, and how it can improve 
the quality of life. It may also 
explain why Mr Stafford Tay- 
lor, BTs new head of personal 
communications, says BTs 
mission is to get friends and 
relations to speak to each 
other - a far cry from the old 
days, when BT was a national- 
ised utility, and it took weeks 
even to get a phone connected. 

Comparisons between the 
UK and the US illustrate the 
scope for growth. In the US, 
the typical home phone is used 
for 18 minutes a day. 
Americans spend twice as long 
on the line to relatives than 
the British and more than four 
times as long chatting to 
friends. But the sharpest con- 
trast is in “telelmylng 1 ’: Amer- 
ican households spend an 
average of six minutes a week 
purchasing goods and services 
via the telephone, compared 


with half a minute in Britain. 

Culture, geography, even 
variations in climate partly 
explain such international dif- 
ferences. Americans Hve far- 
ther apart than Europeans; 
their service industries are 
more geared to the phone. 
Within Europe, the Scandina- 
vians and Italians spend far 
longer on the line than the 
British, according to BT - pos- 
sibly because colder weather 
keeps the Danes and Finns 
indoors, while Italian families 
are more communicative than 
their English co unter parts. 

Nonetheless, marketing and 
perceptions of price also 
account for British reticence 
on the phone. The price of 
calls has fallen by about 40 per 
cent in the UK in the last 
decade, and Organisation for 
Economic Co-operation and 
Development studies show 
that the price of residential 
calls is gjyniiar in the US and 
the UK. Tet British percep- 
tions have not changed: the 
typical caller overestimates hy 
Hove times the cost of malting 
a call. 

The same disparity applies 
to mobile phones. A study* by 
the Manchester School of Man- 
agement, based on a survey of 
500 university employees, 
reveals gross overestimates of 
the price of mobile services. 

Ironically, the prices volun- 
teered by the respondents as 
"reasonable" were almost 
identical to today's actual 
prices. The average price vol- 
unteered for a 
mobile handset 
was £190; £77 
was considered 
reasonable, 
which is about 
the going rate 
for a bottom-of- 
the-r an ge 
modeL On aver- 
age, respon- 
dents thought 
that peak-rate 
calls cost 57p a 
minute and off- 
peak calls 35p; 
they considered 
24p and 14p, 
respectively, to 
he reasonable - 
within a few 
pence of what Vodafone and 
CeUnet, the two largest opera- 
tors, charge. 

Unsurprisingly, only 5 per 
cent of those surveyed had a 
mobile phone or pager. There 
was also little enthusiasm for 
the concept of constant contac- 
tabUity - 71 per cent said they 
did not want to be available by 
phone at all hours of the day. 

But barely one in eight said 
they would "never” want to 
make or receive calls when ont 
and about, and only 18 per 
cent thought that society was 
a better place before the 
arrival of mobile phones. It is 
fair bet that if the price was 
low enough, and known to be 
so, almost everyone would buy 
a mobile phone. 

More effective marketing 
would seem a prime require- 
ment for tapping that latent 
demand. VS telecoms giant 
AT&T spends about 10 times 
as much as BT on advertising 
as a proportion of revenues. 

BTs figures might lead it to 
use advertising to persuade 
men to pwke more social calls 
and women to work, more from 
home. But if the US is any 
guide, phone companies and 
consumers alike would gain 
most from a fierce, well-publi- 
cised price war. Consumers 
would have the actual cost of 
ftaiig drummed into them; line 
usage would rise; phone com- 
pany profits might be boosted 
- in the cause of getting peo- 
ple to talk to each other. 
^Manchester School of Manage- 
ment, POBox 88. MSO 1QD. £90 


IT S BTflSk/N£r 
WHY %t! AREN'T 
ON THE PHONE, 
ir^S SWTURDftY 
AFTeRNOON/ 



Well-rounded education 


From Ms C Shepard. 

Sir, In her letter of March 25, 
Mrs S Copperwaite of Merrill 
International demonstrates all 
the enthusiasm of a good star 
dent After all, poets are read 
mostly by other poets, water- 
colour painters viewed by oth- 
ers of their skill, and investors 
also think the world revolves 
around their profession. 

I am a fan of Michael Prowse 
and agree that a well rounded 
education includes economics. 
The trouble is that formal 
schools of economics admit 
they cannot create an expand- 
ing market at wfiL 


I read somewhere that most 
economic reports are studies in 
obfhscation and I agree. 

Until thfo problem is cleared 
up, I think schools could use 
some understanding of moral 
standards, honesty and charity 
tacked up by the age-old tenets 
of whatever major religion is 
followed by the student and his 
family, whether he/she is an 
investor, watercolour artist, 
poet or whatever. 

Ms C Shepard. 

600 Footm Road, 

Palo Alto. 

CA943058444, 

US 


Bright hope for 

From Mr Bohdan Skrobach. 

Sir, The announcement by 
the Ukrainian government of a 
complicated procedure for run- 
off elections (“Kravchuk sets 
new hurdle in toe path of par- 
liament”, March SO) shows that 
the true democrats in Ukraine 
are not politicians, but its citi- 
zens. 

Despite a confusing electoral 
law 75 per cent of the people 
voted in the first round. 

Regardless erf the final out- 


Ukraine's future 

come one clear message has 
been given. Ukrainian citizens 
seek solutions through demo- 
cratic institutions. Although in 
the west this sentiment is 
taken for granted, in a former 
authoritarian state, where two- 
thirds of toe people are classi- 
fied as living under the poverty 
line, it is the one bright hope 
for the future. 

Bohdan Skrobach, 

23 Rowland Street, 

Toronto, Canada MSP IMS 




FINANCIAL TIMES WEEKEND APRIL 2/APRIL 3 1994 


Redland better than 
expected with £279m 


By Andrew Taylor, 
Construction Correspondent 


Pre-tax profits of Redland, one 
of Britain’s biggest building 
material groups, jumped by 40 
per cent last year from £i99m 
to to £279m. 

Comparisons between the 
two years were distorted by 
profits and losses on the dis- 
posal of businesses and proper- 
ties. A better guide to perfor- 
mance was a 28 per cent rise in 
operating profits, after Interest 
payments, to £267ra (£308m). 

The shares, following the 
better than expected results 
published on Thursday, rose 
I5p to 539p. The market was 
also encouraged by the compa- 
ny’s comments about the con- 
tinuing strength oE the German 
housing market and rising UK 
building material prices. 

The company said it had gen- 
erated £297 m of cash during 
1993, compared with an out- 
flow of £369m in 1992. This had 
enabled it to reduce net bor- 


rowings from £66Un to £3S4m 
and gearing from 67 per cent to 
43 per cent, including auction 
market preferred stock as debt 

Turnover rose from £2.09tm 
to £2L47ba Earnings per share 
rose to 26.lp <23.Tp), adjusted 
for the loss on the disposal of 
an investment in an associate. 

The maintained final divi- 
dend of 16.75p makes a same- 
ag a in total for the year of 25p. 

Mr Robert Napier, chief exec- 
utive said; “In the UK pros- 
pects do at last look more 
encouraging, with the housing 
market improving. After many 
years of decline, building mate- 
rial prices and margins are 
now recovering. The changes 
to the road programme 
announced by the government 
are unlikely to have any 
adverse impact in 1994 and 
1995." 

UK operating profits in 1993, 
excluding £6m for the costs on 
plant closures, rose from 
mSm to £28.8m. 

Trading remained strong in 


Westland joins GKN stable 


By Tim Burt 


M&G and Schroders, the 
largest institutional sharehold- 
ers in Westland Group, are 
expected shortly to accept 
GKN’s Increased takeover offer 
for the helicopter manufac- 
turer. 

The two institutions, which 
together control 25 per cent of 
the Yeovil-based company, are 
likely to take the revised 335p- 
a-share cash offer following the 
Westland board's reluctant 
decision to recommend accep- 
tance of GEN'S £577m hostile 
bid. 

Mr Alan Jones, Westland 
chairman, made the recom- 


mendation following a meeting 
on Thursday with Sir David 
Lees, his GKN counterpart 

Sir David told him that the 
engineering group had secured 
enough shares to ensure its 
stake could not be diluted 
below 50 per cent. 

GKN, which increased its 
290p-a-share offer by 15 per 
cent earlier this week, has pur- 
chased more than 13.4m West- 
land shares at 335p and now 
controls 52.35 per cent of the 
enlarged share capital - allow- 
ing for conversion of prefer- 
ence shares. 

Although Mr Jones claimed 
GKN’s revised offer still under- 
valued Westland, he told inves- 


Calor boosted to £51.5m 


By David Wigfiton 


Calor Group, the dominant supplier of bottled 
gas in the UK, is increasing its dividends for the 
first time since it demerged its oil interests in 
1988. 

A final dividend of 6.5p increases the total for 
1993 to 12 5p (I2p) out of earnings per share 
which recovered to 19.5p (12p). 

Pre-tax profits rose by £l7.9m to £5L5m last 
year largely because of the absence of £14 .8m of 
exceptional costs, incurred In 1992. relating 
mainly to the restructuring of the core gas busi- 
ness, the directors stated, 

Mr Howard Robinson, chief executive, said the 
dividend increase reflected the company’s 
strong balance sheet and cash flow. “We also 
wanted to restore income for shareholders after 
the advance corporation tax changes last year.” 


However, he added that it should not be taken 
as a signal that dividends would rise “ever 
onwards". 

The company has cut its costs by more than 
£15m a year, reducing its staff by 1,000 to 2,000. 
in an attempt to stem the long-term decline in 
its market share. 

“In 1993 we used the cost savings to offer 
better value for money to our customers which 
reinforced our position as market leader," said 
Mr Robinson. 

Calor cut its prices which stimulated higher 
sales volumes with little help from the weather 
or the economy. 

Group turnover fell nearly 5 per cent to 
£295 An and Calor’s own cost of gas rose but. 
thanks to the restructuring, operating profits 
from the core gas business were little changed 
at £54. 4m. 


Rugby cuts flotation price to 115p 


By Simon Davies 


HUlsdown has decided at the 
last minute not to sell Its stake 
in Rugby Estates, the company 
run by its former property 
team, because of a significant 
cut in the flotation price. 

The pricing for the Rugby 
flotation was announced on 
Thursday, and the property 
company is being valued at 
£20.75m, compared with an ini- 
tial target of up to £30m. 

The offer comes in the mid- 
dle of a glut of property flota- 
tions, a sharp reduction in the 
property sector's premium to 


asset value, and the recent 
under-subscription of the pub- 
lic offer for Capital Shopping 
Centres. 

These factors forced the com- 
pany to scale down pricing and 
the size of the share offer. It is 
placing 13.24m shares at I15p. 
which will raise £14.24m for 
Rugby, compared with the Ini- 
tial aim of raising £l9.7m from 
the share offer. The placement 
amounts to 73 per cent of the 
enlarged company. 

The pro-forma net asset 
value per share is ll&8p and 
the issue price therefore repre- 
sents a 13 per cent discount to 


net asset value, compared with 
the initial expectation of a pre- 
mium. 

As a result of the reduced 
offer price, Hillsdown is to 
retain its 13 per cent stake, 
diluted from 49 per cent, 
because of the new shares. 

Mr Andrew Wilson, manag- 
ing director, said he was 
pleased with the amount raised 
by Rugby. 

The company will have 32 
per cent gearing on flotation, 
but Mr Andrew Wilson, manag- 
ing director, said he would be 
happy to reach an average fig- 
ure of 100 per cent. 


NEWS DIGEST 


Downturn in 
France hits 
Ash & Lacy 


final dividend of 3.9p main- 
tains the total at 6.4p. 


Glenchewton 


A difficult year for its galv- 
anising plants in France left 
1998 pre-tax profits for Ash & 
Lacy, the metalwork company. 
9 per cent lower at £3.4im, 
against £3. 74m. 

Turnover was slightly higher 
at £54 -2m, compared with 
£53An. 

The West Midlands-based 
company said that trading con- 
ditions bad continued to be dif- 
ficult, particularly in France 
winch suffered a further weak- 
ening of demand affentlng Us 
large scale plants. 

UK galvanising increased 
sales and profits with a good 
contribution from the Midlands 
and manufacturing increased 
profits as a result of a good 
performance from the storage 
tank division. 

Earnings per share were 
8J2Bp (9. 76p). An unchanged 


A strong second half perfor- 
mance enabled Glenchewton, 
the toys, housewares and bas- 
ket ware company, to swing 
from losses of £2An to profits 
of £606,000 pre-tax for 1993. 

Turnover from continuing 
operations Improved by 19 per 
cent from £ 16.2m to £19.2m. 
Earnings per share emerged at 
l.89p Gosses 9.2Sp). 


result of innovation and 
improved efficiency, he added. 

Earnings per share rose to 
16p (13. Ip). Because of the plac- 
ing to fund the acquisition of 
Label Research, a second 
Interim dividend of 2.75p In 
lieu of a final, was declared in 
February, making 4p (3.68p) for 
the year. 


Boxmore 


A 23 per cent Increase in pre- 
tax profits was announced by 
Boxmore International, USM- 
quoted maker of packaging 
products, for 1993. 

On turnover of £32.6m 
(£32£m) profits improved from 
£3. 62m to £4.45m. 

Mr Harold Ennis, chairman, 
said severe competitive pres- 
sures had prevailed in most of 
the group's markets and prices 
either remained stable or foil. 
The better margins were a 


1 DIVIDENDS ANNOUNCED | 



Cones - 

Total 

Total 

Current 

Date of 

ponding 

for 

last 

payment 

payment 

Attend 

year 

year 

African Lakes fln QJ> 

Jun IQ 

2 

QJ5 

2 


Ash a Lacy . 

Boxmore — 


African Lakes 

High interest rates in Zim- 
babwe and Malawi affected the 
results of African Lakes Corpo- 
ration, which announced pre- 
tax losses of £923,961 for the 
year to September 30 1993, 
compared with profits of 
£U28m restated in accordance 
with FRS3. Profits last time 
include a £542,813 profit on 
property sales. 

The company, which has 
interests in motor trading, 
agriculture, mining, engineer- 
ing and computer supplies, 
said the impact of economic 
problems in Malawi had been 
worse than expected and 
operations there, traditionally 
the strongest contributor to 
second half profits, had suf- 
fered badly. 

Turnover fell to 246.7m 
(£50.6m) generating operating 
profits of £530.219 (£1.52m). 
Losses per share were I3.04p 
I427p earning s) and a nominal 
dividend of 0.5p (Zp) is pro- 
posed. 


Martin Ml — .fln 

Murray Ventures — Jnt 
Badland tin 


OMdsnds shown pence per share net except where otherwise stated. fOn 
increased capital guSM stock. 


Anglo Pacific Res 

Anglo Pacific Resources, the 
USM-quoted mineral explora- 
tion and coal producing group. 


COMPANY NEWS: UK 


Germany. Housing permits 
issued in eastern Germany 
more than doubled and over 
the country as a whole the rise 
was 22 per cent. German oper- 
ating profits increased from 
£U5m to £150m. 

Profits from the US more 
than doubled to £54.5m 
(£26.7m) assisted by increased 
sales in Florida following Hur- 
ricane Andrew and the comple- 
tion of Denver's new interna- 
tional airport. 

These special factors may 
not be repeated, but the com- 
pany was encouraged by rising 
US construction activity as the 
economy continued to 
improve. 

Mr Napier said that else- 
where in Europe the outlook 
was mixed, with the Nether- 
lands steady but little sign of 
improvement in France. 

Australia and the Ear East 
were trading welL Overseas 
profits, in total, rose from 
£209m to £28 Un. 

See Lex 


Adjournment 
puts Heron 
creditors 
in confusion 


By Maggie Uny 


tors: “It would not be in the 
interest of shareholders or war- 
rant holders to continue to 
retain minority holdings in a 
company that formed part of 
the enlarged GKN group." 

Royal Insurance, which con- 
trols 4 per cent of Westland, 
has signalled Us intention to 
follow the recommendation 
and other institutions are 
expected to follow suit 

United Technologies, the US 
parent of Sikorsky helicopters, 
will also gain from the revised 
offer. 

The group is expected to 
receive around £86m rather 
than the £75m on offer at the 
290p price. 


BP in talks on 
nutrition sales 


By Deborah Hargreaves 


British Petroleum, the 
UK-based International oil 
company, is in talks with two 
venture capital funds about 
selling the remainder of its 
nutrition business to a man- 
agement buy-out team. The 
sale is expected to raise about 
$5 00m (£342m). 

The Netherlands-based busi- 
ness Is an Important supplier 
of feed and animal products in 
Europe, with interests in 
North and South America and 
a turnover of S2bn last year. 

BP, which has been selling 
off its nutrition interests over 
the past 18 months, said it was 
negotiating with CINVen and 
Baring Capital Investors about 
tiie sale of its Agri Speciali- 
ties, Aquaculture, Breeding 
and Feed and Animal Products 
business. 

BP has raised over $lbn in 
cash from nutrition disposals. 


ended the 1993 year with a pre- 
tax loss of £163,000, down from 
the previous year’s deficit of 
£670.000. 

Turnover rose from £2. 11m 
to £3.38m, but the cost of sales 
increased by a third to £3 -22m. 

The results included initial 
royalty income amounting 
£676,000 from the Gordonstone 
coal project. 

Losses per share emerged at 
0.33P (Q.86p). 


Empire Stores 

Empire Stores Group, the 
Bradford-based mail order com- 
pany owned by Redoute Cata- 
logue, the French mail order 
group, returned to profit in 
1993 with £3m before tax. 

The result ended two years 
of losses to the tune of £8m in 
1991 and £2.7m in 1992. 

The company said the turn- 
round was due to the recovery 
plan put in place in 1991 fol- 
lowing the acquisition by 
Redoute. 

It was also announced yes- 
terday that Redoute is merging 
with Pinaulb-Printemps Group, 
which previously owned 54.4 
percent 


Waterhouse 

With margins still under pres- 
sure USM-quoted Waterhouse 
Group reported a pre-tax loss 
of £74,543 In the year to Sep- 
tember 30 on sales up 5 per 
cent at 22.79m. 

At the Interim stage the com- 
pany, which fits out and refur- 
bishes office interiors, suffered 
a pre-tax loss of £51,114 after 


Taking a walk on the wild side 

Raymond Snoddy on Pearson’s purchase of The Software Toolworks 


1 Creditors of Heron 
International were left in con- 
fusion an Thursday, after 
meetings of senior and junior 
bondholders were adjourned 
in the absence of a quorum. 
The meetings were held to 
approve a deferral of interest 
payments due on Thursday 
until the end of June. 

With the interest left 
unpaid, the bonds are techni- 
cally in default, though as yet 
no creditor has moved against 
the company. Under the terms 
of the trust deeds, holders of 
at least 25 per cent of the 
bonds can ask the Trustee to 
act 

Holders of 35 per cent of the 
bonds either attended the 
meeting or voted by proxy, but 
the quorum required was at 
least 50 per cent The meetings 
were therefore adjourned and 
will be called again, probably 
towards the end of April. At 
least 14 days notice is 
required. At the reassembled 
meetings the quorum is two 
holders, whatever the value of 
the bonds they hold. 

Heron had warned that with- 
out the interest deferral, and 
the postponement of other 
payments due, the property 
and trading group might be 
unable to continue trading. 

In a separate development, 
Heron Properties, the US arm 
of Heron which was detached 
from the group under last 
year's refinancing, is being 
sued in the New York Supreme 
Court by Stratagem Develop- 
ment Corporation. 

Stratagem - which is also 
suing nine banks and four peo- 
ple, including Mr Gerald Hen- 
son, chief executive of Heron 
International, and Its bead Mr 
Simon Shane - and Heron 
have been embroiled in litiga- 
tion for some years. 

Stratagem is asking the US 
court to set aside the restruct- 
uring of the US companies on 
the grounds that it constituted 
"an an lawful fraudulent con- 
veyance". It asserts that Heron 
Properties gave security over 
assets to the nine defendant 
hanks with the intent of pre- 
venting the payment of unse- 
cured creditors such as Strata- 
gem. 


P earson's agreed offer of 
$462m (£310m) for The 
Software Toolworks, the 
interactive software publisher, 
looks a little like one of the 
| California's company’s most 
I recent hit products - MegaR- 
! ace. 

- The CD game, which sold 
I 100,000 copies in its first week, 
is described as “a wild, on the 
edge, virtual driving experi- 
ence through the landscape of 
a future Megalopolis'’. 

The planned drive into the 
new world of multimedia by a . 
company, which was starting 
to acquire a reputation lor cau- 
tion and being bridesmaid 
rather than the bride, will be 
seen by some as a little bit on 
the wild side. 

The price for Software Tod- ' 
works, which specialises in the 
production of "entertainment, 
edutainment and infotain- 
ment” for personal computers 
and video game machines such 
as Nintendo and Sega, is no 
less than 120 times the compa- 
ny’s pre-tax profits for the year 
to March 1993, although the 
multiple is something like 57 
for the present year. 

“Whenever you back an 
emerging market you are tak- 
ing a risk.” said Mr Frank Bar- 
low. managing director of Pear- 
son, which has interests 
including the Financial Times, 
Penguin Books, Thames Televi- 
sion and a slake In Sky Televi- 
sion, the satellite venture. 

To counter suggestions that 
the price was high Mr Barlow 
added that conventional wis- 
dom used to suggest that the 
price for Sky had been high. 

Pearson, which has taken a 
strategic decision to concen- 
trate on information, education 
and entertainment, also 
announced formally that It was 
setting up a new division, Pear- 









Lord Blakenham hopes Mario win lead the way to future growth 


son New Entertainment 
Europe. It will be ted by Mr 
Nick Alexander, who is joining 
Pearson from Sega Europe. 


M r Barlow described 
New Entertainment 
Europe, which will 
be run separately from Soft- 
ware Toolworks, as “taking an 
each way bet”. 

Lord Blakenham, chai rman 
and chief executive of Pearson 
emphasised that the price was 
in line with other relevant 
transactions around the world. 

Earlier this year, for exam- 
ple, Electronic Arts, one of the 
largest computer game compa- 
nies. bought firoderbund, 
another software company for 
$400m, although Broderbund 
then had profits of $20m a 
year, hi the nma months to 
December 1993 Software Tool- 
works had pre-tax profits of 


Capital Radio expansion 


8y Raymond Snoddy 


Capital Radio, the London commercial pop 
music broadcaster, has extended its reach to the 
south of England with an agreed £32.6m take- 
over of Southern Radio. 

The boost to the process of consolidation 
within the commercial radio industry came the 
day after Capital's London rival LBC announced 
it had gone into receivership. 

Capital, the flagship company of commercial 
radio whose two London licences. Capital FM 
and Capital Gold, will soon be up for renewal 
has already received irrevocable undertakings 
covering 55.9 per cent of the Southern shares. 

The deal is I15p in cash for each share of 
Southern, a group formed in 1991 by the merger 
of Invicta Sound and Southern Radio. The group 
broadcasts in Kent, Sussex, Hampshire and the 
Isle of Wight 


The deal will reinforce Capital’s position as 
the main player in the UK industry. Apart from 
its two London licences the company also oper- 
ates RRMR and Xtra AM in Bi rmingham and 
has stakes in a string of other radio companies 
including GWR, Metro Radio and Chilton. 

The bid for Southern, which returned pretax 
profits of £956,000 on turnover of £8 .6m in the 
year to September, is designed to Increase Capi- 
tal's business outside London where competi- 
tion continues to grow. 

The Radio Authority is about to advertise four 
new radio licences for London and further 
licences are possible next year. 

Commercial radio revenues in the UK have 
been rising, helped by two new national stations 
- Classic FM and Virgin 1215 - launched in 
Britain and a raft of more local stations and a 
better co-ordinated promotional campaign for 
radio. 


Fire surplus 
keeps Gaskeli 
in the black 


HSBC prompts bid talk 
with 6% stake in Hogg 


Gaskeli, the carpet manu- 
facturer, reported a pre-tax 
profit of £403,000 for the 12 
months to the end of Decem- 
ber, against £13UM0. 

Turnover was up 8 per cent 
at £30.5ra (£28.3m) but there 
was au operating loss of 
£174,000 (£619.000 profit). This 
was offset by an exceptional 
credit of £913,000 representing 
profit realised on machinery 
destroyed by fire. 

The dividend for the year is 
maintained at 4.25p, with a 
final of 2.75p. Earnings per 
share came through at 5.3p 
(L8p). 


By Richard Lapp or 


HSBC Holdings has acquired a 
6 per cent stake, worth about 
£8m. in Hogg Group, the insur- 
ance broker and Lloyd’s under- 
writer, in the last few days 
prompting speculation in the 
City that a takeover bid was in 
the offing. 

Mr Anthony Howland-Jack- 
90 n, chairman and nhief execu- 
tive of Hogg, said HSBC had 
shown interest in the past but 
that no formal approach has 
been made recently. “Clearly 
we can only assume they have 
bought these shares with some- 
thing in min d ” 

Hogg discussed the stake 
with its bankers, on Thursday, 


when HSBC announced the 
holding. HSBC said it was one 
of a number of investments in 
the insurance industry. 

The acquisition Led to 
mounting investor interest in 
Hogg's stock, the price of 
which has been depressed fol- 
lowing a profits warning in 
January. On Thursday the 
shares closed at 165p, up 24p 
on the day. 

Mr Tom Bennett, insurance 
analyst with Banque Paribas 
Capital Markets, said the 
announcement looked “tike a 
precursor to something”. 

He added: "Takeover enthu- 
siasm has raised Its head and 
is bound to tinge all players in 
the sector.” 


exceptional redundancy costs 

of £24J60. 

In 1992 a profit of £64304 was 
achieved on sales of £2. 64m. 

On a per share basis the 1993 
deficit was 2£p, against earn- 
ings of 2.5p. 


Dunton cuts losses and 
makes £760,000 rights 


Martin Inti 


Martin International Holdings, 
the clothing manufacturer, 
reported pre-tax losses of 
£Z25m for the year to Decem- 
ber 31 after exceptional reor- 
ganisation costs of £l.94m. 
There were profits of £l.27m in 
1992 after exceptionals of 
£664,000. The comparable fig- 
ures have been restated in 
accordance with FRS 3. 

Turnover totalled £85.4m 
(£83. 4m) including £2.47m 
(£7.66m) from discontinued 
operations. Operating profits 
on continuing operations fell 
from £4.44m to £L91m. Interest 
took £L36m (£l.48m). 

Losses per share amounted 
to lO.lp (2J3p earnings). A final 
dividend of 0.6p (2.7p) is pro- 
posed, cutting the total for the 
year to lp (4.4p). 


Dunton Group, with interests 
in brickmflktng, engineering 
and property, cut its pre-tax 
losses from £652,000 to 
£636,000 for the half year 
ended November 30 1993. 

The USM-traded group is 
also calling for £760,000 net 
via a l-for-3 underwritten 
rights issue at 6p a share to 
help reduce debt 

The balance of debt will be 
tackled via a restructuring 
arrangement with the group's 
bankers. Dunton said restruct- 
uring would leave it with 
totally ungeared properties 


and positive cash balances. 

At the same time Mr CUve 
Travers has resigned as chair- 
man and sold the majority of 
his shareholding to the direc- 
tors and others. Mr David Wil- 
liams, executive chair man of 
Mosfac Divestments and non- 
executive director of Waste 
Recycling, has been appointed 
a director and non-executive 
chairman of Dunton. 

Turnover was £933,000 
(£879,000) and interest charges 
came to £484,000 (£694,000). 
Losses per share emerged at 
l.45p (l.73p). 


linked with the consumer mar- 
ket for CD-Roms where the 
cost of production is much 
lower than for video games 
cartridges. 

Sales of CD-Rom software in 
the US reached ah estimated 
$2.6bn in 1992 up from $3Q4mln 
1888. 

To a considerable extent 
Pearson and Software Tool- 
works chose each other. While 
Pearson looked at a large num- 
ber of possible acquisitions, the 
software company had talks 
with 20 possible partners. 


M r Bob Lloyd, chief 
executive of Soft- 
ware Toolworks, said 
the company was impressed 
with Pearson’s trade record of 
working well, with creative 
groups in the media business. 
Or, as Mr Barlow put ft on 
Thursday with a smile, “deal- 
ing with difficult people”. 

There are a lot of earrings 
and long hair at Software Tool- 
works. the Pearson managing 
director noted with satisfac- 
tion. However, in comparison 
to annual staff turnover rates 
of 60 per cent in some parte of 
the software industry Software 
Toolworks had a 5 per cent 
turnover rate over three yearn. 

The City decided the deal 
would be dilutive in the short 
term and marked Pearson 
shares down 26p to 64ip on 
Thursday. 

If the deal Is finalised it will 
oe the largest so for of its type 
and one of the most significant 
moves so far by a conventional 
European publisher Into multi- 
media. 

As the blurb of MegaRace 
says: “Winning Is all that 
counts”. It Is too early to know 
bow big the prize wifi be even, 
for “winners” in the wild mul- 
timedia race. 


$6m on sales of $l07m- 

Pearson intends to launch a 
tender offer for all the 29.5m 
outstanding shares in Software 
Toolworks, a company quoted 
on Nasdaq, 

The offer will remain open 
for 20 business days and the 
deal is dependent on more than 
50 par cent of the shares being 
tendered. The California com- 
pany which fa»g been through 
diffic ult lossmaking times is 
now expanding under new 
management and last year pro- 
duced 105 titles with plans to 
produce another 155 this year. 

It has the rights to use the 
Nintendo Mario Brothers char- 
acters for educational purposes 
and the Star Wars characters 
as well as developing its own 
brands, which include Chess- 
master « nd typing and piano 
teaching systems on CD-Rom. 
Its future profits growth is 


De-listing fear 
for London 
Securities 


By Simon Dairies 


London Securities, the 
property Investment company, 
has warned that if ongoing 
discussions for the completion 
of a property purchase are not 
completed by the end of this 
month the company would be 
threatened with de-listing. 

London Securities completed 
a company voluntary arrange- 
ment in 1992, whereby Its pre- 
vious assets were put under 
the control of its secured lend- 
ers, leaving the company as a 
cash shell. 

It is considering the pur- 
chase of properties from its 
Nu-Swift, die fire protection 
and property group which 
with a 29 per cent stake is the 
company's largest share- 
holder. 

It yesterday announced a 
pre-tax loss of £342,000 for the 
year to September SO 1993, 
reflecting the absence of oper- 
ating businesses. Losses per 
share were 0.6p. 


Cementone rises 
22% to £1.21m 


By Tim Burt 


Cementone, the specialist 
paints and building 
manufacturer which came to 
the market earlier this year 
through a reverse takeover of 
Multitrust, has announced a 
22 per cent increase in profits. 

Strong demand for the 
group's admixtures and bulk 
chemicals helped lift pre-tax 
profits to £1.21m (£996,046) in 
the year to December 31. 

Operating profits rose by 8.7 
per cent to £1.45m (£I.36m), 
bat the group benefited from 
reduced interest payments and 
increased investment income. 

A decline in paint sales, 
however, contributed to flat 
turnover of £17.4m (£17. 2m). 

Hr Alfred Baxendale, the 
chief executive, said the group 
was proceeding with plans to 
dispose of the asset portfolio 
inherited from Multitrust, the 
property Investment company. 

Earnings per Share rose to 
4.05p (3.44p), and Mr Baxen- 
dale said the group would 
announce its first Interim divi- 
dend In September this year. 


Queens Moat wins extension 


By Maggie Urry 


Murray Ventures 

Murray Ventures, the invest- 
ment trust, had a net asset 
value per share of -nip at Jan- 
uary 31 against 3l2p a year ear- 
lier and 34&6p at the July 31 
year end. 

Net revenue for the six 
months to the end of January 
Increased from £1.7m to £2.03m 
for earnings per share of 8.18p 
(&67p). The Interim dividend is 
raised from 3.4p to a5p, 


Holders of Queens Moat 
Houses' two debentures have 
voted overwhelmingly to 
extend their waiver of the right 
to enforce their security, this 
time until the end of June. 

At the same time, bank lend- 
ers to the hotel group, in dis- 
cussions over a £l.3bn refinan- 
cing, extended the standstill 
agreement until May 27. The 
standstill had been due to 
expire on Thursday night 

Of the votes cast, 97.2 per 
cent of one group and S&9 per 
cent of the other were in 
favour of the extension. 


QMH hopes to publish Its 
results for 1993 by the end of 
the coming week. Once these 
are available it aims to finalise 
details of its- refinancing and 
pat these to creditors and 
shareholders. When proposals 
have been accepted the group's 
shares, which have now been 
suspended for a year, are 
expected to be relisted. 

The holders of the two 
debenture stocks - £20Qm of 
m pa cent and £l5m of 12 
per cent first mortgage deben- 
tures - have rights over 27 
hotels. These were valued at 
£i37-5m on December 31 1992. 

The trust deeds for the stock 


say that the properties most be 
worth at least 250 per cent of 
the nominal value of the 
stocks, and so there was a 
shortfall of £178. 5m using that 
valuation. 

QMH could not make up that 
shortfall by pledging further . 
assets so the debenture holders 
were entitled to. enforce the 
security. In November, meet- 
ings of the debenture holders 
agreed to waive this right until 
April 1 and it was this waiver 
that was extended at Thurs- 
day's meetings. 

Interest payments on the 10M 
per cent stock, totalling £7.7ro, 
were paid yesterday. 


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INTERNATIONAL COMPANIES AND FINANCE 


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Renault beats forecasts 
with FFrl.07bn profit 


^ ^ohn Bidding h 

fte*ault, the French 
gowned vehicle group, auf- 

■52? Profit* 1** 

Managed to achieve a 

despite the contraction in the 
gmjpean car market Mr Louis 
acnweitzer, chairman, forecast 
™»roved earnings in the cur- 
rent year. 

Th.® result for last year, 
which compares with net prof- 
its of FFr5.68hh in 1992, was 
higher than most industry ana- 
lysts had forecast. Mr 
Schweitzer said it demon- 
strated the competitiveness of 
the company in the midst of 
depressed markets, adding that 
few other European car manu- 
facturers had managed to 
remain in profit through the 
recession. 

The .Renault chairman qpifl 
the group was seeking to forge 
new industrial partnerships 
following last year's collapse of 
its plans to merge with Volvo. 
But he played down the pros- 
pect of a far-reaching aTHanna 
“We need to develop limited 


co-operation agreements with 
competitors, like other players 
in the industry," he said. 

Mr Schweitzer said tali™ 
were being held with Fiat of 
Italy, but denied a “global" 
agreement was being dis- 
cussed. The negotiations are 
thought to include the sharing 
of foundry faculties. Renault 
dismissed the idea of plans to 
exchange engines with Elat or 
to seek an alliance between 

RVT, its trucks and buses divi- 
sion, with the Italian group’s 
Iveco truck operation. 

Last year’s profits were sup- 
ported by ftoanrial i^mTWP of 
FFr537m. compared with a 
charge of FFr48m in 1992, 
reflecting lower interest 
charges, and improved ir«*> me 
from its financial subsidiaries. 
Reduced losses from its share- 
holding in Volvo, which haw 
been partly unwound since the 
collapse of the merger, also 
helped earnings. 

Mr Schweitzer's prediction of 
an. improved performance this 
year is based cm signs of recov- 
ery in the European vehicle 
market and continued cost-cut- 


ting and efficiency measures. 
Renault said that the French 
market had been strongly 
boosted by government mea- 
sures which include the pay- 
ment of FFr5,000 to car-owners 
who trade in a vehicle more 
than 10 years did to buy a new 
one. According to Mr 
Schweitzer, the measures could 
bring about 200,000 extra 
orders in the French market 
Turnover last year foil from 
FFrI84.25bn to FFrlG9.79bn, 
after adjusting last year’s fig- 
ures for an accounting change 
which consolidated revenues 
from financia l services. In unit 
terms. Renault sold 1.79m 
vehicles, a 12 per cent fell on 
1992. In western Europe, sales 
of cars and light passenger 
vehicles fell 17 per cent to 
1.39m, while market share 
slipped slightly from 11.3 per 
cent to 1L1 per cent. 

Renault is one of the 21 com- 
panies slated for privatisation. 
The sale of the government's 
controlling stake, however, 
which had been forecast to 
take place this year has been 
pushed back until 1995. 


Judge extends Trizec protection 


By Bernard Simon in Toronto 

Trizec, North America's 
biggest publicly-traded prop- 
erty developer, has gained 
another 24 days, of court pro- 
tection while it tries to con- 
vince creditors not to push it 
into bankruptcy. 

An Alberta judge has given 
the Calgaiyrbased company 
until April 25 to work out an 
agreement with the creditors, 
notably a. group ' holding 
C$12bn (USSBTOm) of senior 
debentures. The two sides 


agreed that if they cannot 
■ bridge their differences by 
then, the number of days 
required fta notice under bank- 
ruptcy laws will be reduced 
from 10 business days to one. 

The debenture holders, many 
of whom are European inves- 
tors, have rejected plans pres- 
ented by Trizec last August to 
restructure part of its C$4J9m 
debt Repayment of the deben- 
tures fen due last autumn. 

. But Trizec announced an 
agreement raHier this week for. 
a C$600m equity injection by 


Horsham, the Toronto invest- 
ment company controlled by 
entrepreneur Mr Peter Munk. 
Horsham would end up with a 
stake of at least 43 per cent 
Trizec expects that the Hor- 
sham deal will enable it to 
offer the senior debenture 
holders a higher proportion of 
in place of the securities 
included in its original pro- 
posal. Details of its revised 
offer have not yet been 
released. The debenture hold- 
ers have so far dismissed the 
Horsham deal- 


Bank Hapoalim net climbs sharply 


By DavU Horovttz _ 

In Jeniaatan . . 

Bank Hapoalim, Israel's largest 
bank, has announced a 362 per 
cent increase in net profits to 
" Shk3T£3m ($126-4m> 'for 1993,. 
Its net netran on equity rose to; 
&8 per cent, from 7 per cent in 
1992. . . - 

^ Net -profit^, jto itfce Joutfk 
of -., 1993 -reftefeed : 


Shkififtn, almost double their 
level in the corresponding 
.'.period ef 1992. . - 
.Mr • Amiram Sivan, chief 
executive officer, attributed 
the improved performance to 
increased operating income 
from capita! market activities, 
greater profitability at various 
bank subsidiaries and affili- 
ates, and a reduction of 222 
percent in provision, for doubt- 


ful debts. Operating income, 
given in dollar terms by the 
bank, rose 16.4 per cent to 
$588-6m due mainly to the 
expansion of diversified bank- 
ing services in such areas as 
brokerage, underwriting and 
mutual and provident fond 
management 

Total consolidated assets 
increased by 22 per cent to 
63&9hn. 


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V: No. 8,419 Set by FETTLER 

A prize of a classic TOftan Soureifta 800 ftrantahi pen. inscribed with the 
winner's name- for the first correct solution opened and five runner-op 
prizes of £35 Peffiom woriefaers.- Sc du t fa ns by Wednesday April 13, marked 
Crossword 8,413 on the envelope, to the Financial Times. Number One 
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Recovery at 
Paribas 
continues 
over year 

By Alice Rawsthom in Paris 

Paribas, the leading French 
banking group, last year con- 
tinued its recovery with a 64 
per cent increase in net profits 
to FFrl.45bu (5253m) from 
FFr886m in 1992. 

Hr Andre L§vy-Lang, chair- 
mail, said the group, which 
fell into the red in 1991, bene- 
fited last year from a strong 
performance In market trading 
activities and also from its US 
and Asian banking interests. 
However, he added that it bad 
continued to be adversely 
affected by the European 
recession. 

The group mustered a 13 per 
cent increase in operating 
income to FFr3 2.681m in 1993 
from FFr2&96bn in 1992. Net 
banking income rose fer fes- 
ter, despite the sluggish state 
of the French market, with a 
21 per cent rise over the same 
period to PFr31.3lbn from 
FFr25J»bn. However, revenue 
from other sources feD by 56 
per cent to FFrl.37bn from 
FFr3.08bn mainly due to a 
reduction in asset sales. 

Gross operating profits rose 
by 16 per cent to FFrl3.08bn 
from FFrll.28bn. However, 
Paribas was again forced to 
make hefty provisions on its 
non-performing property and 
industrial investments. 

The level of operating provi- 
sions was 15 per cent higher in 
1993 at FFr8.78bn against 
FFr7.65bn in 1992. Paribas 
said that it had matte particu- 
larly heavy write-downs on its 
industrial investments in 
France, Belgium, Switzerland 
and Italy. The board proposed 
holding the net dividend at 
FFr12 a share. 

Saint Louis slips 

Groupe Saint Louis, the 
French industrial group with 
interests in sugar and paper, 
saw net profits slip to 
FFr717m last year, from 
FFr774m in 1992, writes John 
Ridding. 

The company showed that 
the relative stability of its 
results demonstrated its resil- 
ience in the face of a deteriora- 
tion in the European economy 
last year and the effects of 
strong price competition. 


Foreign side boosts Deutsche Bank 


By Christopher Parkas 
in Frankfurt 

Deutsche Bank's expanding 
foreign business and sharp 
growth in returns from trading 
on its own account were the 
main contributors to its 23 per 
cent increase in net earnings 
last year, according to Mr Hll- 
mar Kopper, chairman. 

Forecasting a similar result 
of DMfl-P.hn ($L3bn) after tax 
for the current financial year, 
be said foreign profits rose 63 
per cent in 1993. Deutsche 
Bank AG, the parent company, 
had “quite a bad year” in its 
domestic operations, where net 
earnings were virtually 
unchanged at DML4bn. 

Operating profits for the first 
two months, excluding risk 
provisions, were about level 
with the same period last year, 
Mr Ropper said at a press con- 
ference. 

The group made good prog- 
ress in its efforts to offset risk 
through regional and sectoral 
diversification,’’ he said in a 
review of last year. 

The chairman, repeating ear- 


lier warnings that the banking 
system was typically worst 
affected at the raid of a reces- 
sion and well into the upturn, 
said provisions against bad 
debts had increased 72 per cent 
to DM3.3bn Almost the entire 
amount had been set aside 
against risks in Germany. 

However, sprightly economic 
recovery abroad and growing 
business in currencies and 
securities compensated for 
some of the domestic difficul- 
ties. The Morgan Grenfell 
group generated DM439m in 
earnings, and the Banca d ’Am- 
erica e dltalia made DM314m, 
Mr Kopper said. As reported 
earlier, DB Luxembourg gener- 
ated DM633m pre-tax partly 
from a heavy How of funds out 
of Germany prompted by the 
introduction of a withholding 
tax last year. 

Profits from own account 
trading rose 76 per cent to 
DM2bn, incl uding a DM400m 
contribution from derivatives, 
which Mr Kopper stoutly 
defended against recent inter- 
national criticism. 

The debate about derivatives 



HUmar Kopper: “Progress 
in efforts to offset risk’ 

had obscured their main pur- 
pose as a hedge against risks. 
“A bank that fails to exploit 
the full range of opportunities 
is not doing its job properly," 
he said. 

Net commission income rose 
26 per cent to DM5£bzz, while 
net interest earnings rose 7.4 
per cent to DMll.7bn. The 
group's net interest margin 


La Generate posts 40% increase 


By QflBan Tett in Brussels 

Society Gdndrale de Belgique, 
the diversified Belgian holding 
company, posted an increase of 
40 per cent in Its net profit last 
year. Total net profit for the 
group was BFr8.7bn ($l-5bn), 
up from BFr6J2bn the previous 
year. 

The group said that part of 
the increase in profit had been 
due to the sale last year of its 
18.4 per cent stake in Union 
Minidre. the Belgian mining 
group, and 422 per cent stake 
in the cement group CBR. This 


had contributed to the 
BFr22bn of exceptional profits 
last year. 

But the improved 
performance of service compa- 
nies such as Generate Bank, 
Tractabel and AG Group, in 
which G£n6rale holds signifi- 
cant shares, had also contrib- 
uted to Its overall profit, the 
group added. 

Speaking In Brussels, Mr 
Eti enne Davignon, president of 
the G&terale group, was 
upbeat about the prospects far 
1994, after a series of 
years which have seen the 


holding company prune a 
number of its financial 
assets. 

“In spite of aU the gloomy 
predictions, we estimate that 
the group could see in 1994 
results at least as good as 1993, 
due to the new balance of our 
portfolio, the good position of 
our enterprises and the health 
of our financial structures," he 
said. 

The group has proposed a 
dividend of BFr85 per share, 
compared with BFr84 last year, 
and a one-for-10 bonus share 
issue. 


Metallgesellschaft scheme approved 


By Michael Undemann 
In Frankfurt 

Shareholders in 

Metallgesellschaft approved 
the second phase of a rescue 
package for the beleaguered 
German metals group after a 
stormy annual meeting which 
focused mainly on alleged 
shortcomings of the supervi- 
sory board. 

Mr Kajo Neukfrchen, chief 
executive, called on sharehold- 
ers to approve the issue of prof- 


it-sharing certificates with a 
value of up to DM11 Im (566m), 
after they had voted through a 
DM3.4bn rescue package at an 
extraordinary meeting in Feb- 
ruary. 

Mr Neukirchen, one of Ger- 
many’s best-known company 
doctors, was appointed when 
the group almost collapsed in 
December, after its US opera- 
tion lost DM2.3bn in oil futures 
trading. 

Many shareholders lam- 
basted Mr Ronaldo Schmitz, 


chairman of the supervisory 
board, for failing to safeguard 
against the huge exposure the 
group had In on futures, an 
activity Mr Schmitz said he did 
not know about. 

Meanwhile, Metall gesell- 
schaft said this week that the 
pressing need to cut costs 
meant it was withdrawing its 
49 per cent stake in Sooth Bast 
Asia Metals Company, a joint 
venture with the Thai group 
Padaeng Industry to build a 
smelting works. 


narrowed further from 220 per 
cent to 221 per cent, and from 
157 per cent to 2.49 per cent at 
the parent company. 

This proved that charges 
that the h ank was not passing 
on rate reductions were 
unfounded. Mr Kopper said. He 
also pointed out that the group 
had invested DM4bn in eastern 
Germany, and had yet to make 
any profits there, but it was 
not com plaining . 

By rule-of-thumb reckoning. 
pa ming s from the former GBR 
might start flowing In two or 
three years, he added. 

Summarising last year’s 
results, Mr Kopper confirmed 
group operating profits rose 16 
per cent to DM52bn after risk 
provisions, while operating 
expenses increased 12.6 per 
cent to DM11.7bn. Excluding 
first-time consolidations, the 
rise was 6.5 per cent, he said. 

Deutsche announced earlier 
this week a DM1.50 dividend 
increase to DM16.50 per share. 
Including tax credits the pay- 
out will give domestic stone- 
holders DM23.57, compared 
with DM23.44 last time. 


Mitsubishi 
Bank bails 
out units 

By Emflco Terazono in Tokyo 

Mitsubishi Bank, a leading 
Japanese commercial bank, 
announced a 791bn (f589m) 
rescue package to help its 
troubled finance subsidiaries. 

The bank will give up some 
of Its loan claims and forgo 
interest on Y330bn in loans 
made to Daimond Teito 
Shoken and Diamond Factor. 
The subsidiaries face mount- 
ing debts due to the prolonged 
recession and further fells In 
land prices. 

However, Mitsubishi said 
the measures would not affect 
its profits for the year ended 
in March as the bailout would 
be financed through equity 
sales. 

Meanwhile, Standard and 
Poor’s, the credit rating 
agency, downgraded the 
long-term debt rating of Mitsu- 
bishi from AA to AA-, and that 
of Sumitomo Bank and the 
Bank of Tokyo from AA- to 
AA+ due to continued bearish- 
ness over the banks’ asset con- 
ditions. 


TANJONG 

PUBLIC LIMITED COMPANY 

(incorporated in England No. 210874) 

NOTICE OF PROPOSED FINAL DIVIDEND 
AND CLOSURE OF BOOKS 

NOTICE IS HEREBY GIVEN ibai a final dividend of 3.4 sen per store 
taftcr having taken account of Malaysian Income Tax aa 32‘50 in respect of ihe 
financial year ended 31 January 1994 has been recommended by the Directors 
for approval by foe members at foe 5 Lay-Seventh Annual General Meeting of 
j foe Company. The dividend, if approved, will be paid on 12 August 1994 to 
shareholders on record of foe Company at foe close of business on 14 July 
1W. 

The Register of Members of foe Company will be dosed from IS July 1994 to 
21 July 1994 (both dates inclusive! for foe purpose of dete rm ini n g 
shareholders’ nUhlmiem to the dividend. 

Registrable transfers received by the Company’s Branch Reginm in 
Malaysia. Signet & Co. Sdn Bbd. u 1802. 18* Floor, Pereas International 
Building, lalan Sultan Ismail. 5Q250 Koala Lumpur. Malaysia, and foe 
Company's Principal Registrar* in the United Kingdom. Indep e nde n t 
Registrars Group t rmimt at Brasdey House. New lands Drive. Without. 
Essex CMS 2UL, 19 to the close of business at 3.00 p.m. on 14 July 1993 will 
be registered before entitlements to foe dividend are determined 

BY ORDER OF THE BOARD 

David Kook 
Siuagamy Rareasamy 
John Secretaries 

31 March 1994 

17th Floor Menata Boustead 

lalan Raja durian 50200 Kuala Lumpur 

Malaysia 


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WEEK IN THE MARKETS 


S African 
worries lift 
platinum 


Platinum was the main 
beneficiary of a wave of buying 
that lifted precious metals 
prices in early trading on 
Thursday following the decla- 
ration of a state of emergency 
in South Africa. 

The London afternoon price 
fjgfag for the white metal - 70 
per cent of which is produced 
in South Africa - was at $42£ a 
troy ounce, up $8.50 from 
Wednesday and only $1 short 
of the 2V£-year high reached 
last August 

The price was later trimmed 
by profit-taking but traders 
thought the bull run still had 
some fuel in the tank. "We are 
powering towards $420, 
although we may not see it 
today ," one dealer told the 
Reuter news agency. 

He added that there was no 
sense in going short of plati- 
num ahead of the elections 
being held in South Africa 
later this month. 

The gold market also 
responded to deepening con- 
cern about the situation in 
South Africa, bat with the 
same lack of conviction that 
characterised its attempt on 
Monday to break resistance 
above $392 an ounce. Having 
faltered again on Thursday 
morning at $390 the price was 
fixed in the afternoon at 
$389.20 an ounce and closed at 
$389.75, up 35 cents on the 
week. 

Silver fared rather better. 
The 15-cent retracement that 
followed the abandonment on 
Tuesday of speculators' 
attempts to drive the price to 
$6 an ounce was all but 
recouped on Thursday morn- 
ing; and at the London close it 
still stood at $5.71% an ounce, 
up 1 cent from last Friday but 
3% cents below the 4-year high 
that it had reached earlier last 
week. 

At the London Metal 
Exchange speculators turned 
a gains t the copper market in 
mid-week, eliminating most of 
the recent $80-plus rally. The 


WEEKLY PRICE CHANGES 



Latest 

Change 

Year 

1963/1994 


Prices 

an week 

ago 

Wgfi 

Low 

Gold per troy oz. 

£389.75 

+035 

£330.75 

£405.76 

£326.05 

Sever per boy Oz 

384 ,90p 

+3.00 

262 SOp 

385 50p 

23000p 

Ahjrririun 99.795 (cash) 

Si 2905 

-105 

S112JL5 

£1323^0 

£1023.50 

Copper Grade A (cash) 

SI 876.5 

-7TJ.0 

£141 ID 

£2375.00 

£1108.50 

Lead (cash) 

£445.0 

-7^ 

$274.00 

£510.50 

£38150 

Mckel (cash) 

S5580L0 

-95.0 

£6075.0 

£8340 

$40435 

Zinc SHG (cash) 

5934. S 

-115 

$998.0 

£1112 

£8685 

Thi (cash] 

$5425.0 

-30.0 

£5625.0 

£6047.5 

£4340.0 

Cocoa FtAore May 

£893 

-40 

E6920 

£1061 

E063 

Coffee Futures May 

£1360 

+2 

£839,0 

£1360 

£836 

Sugar (LDP Raw) 

$289-50 

-6.70 

£295l0 

$317.4 

£2045 

Bailey Future Sep 

£94.50 

+0.30 

£106.75 

£11040 

£93.86 

Wheel Future Jun 

£111.46 

+255 

£144.70 

£148 AS 

C97J0 

Cotton Outlook A index 

82J5C 

+4X55 

GO^Oc 

8285c 

B4.15c 

Wool (Ms Super) 

392p 

- 

357p 

403p 

319p 

09 (Brant Blend) 

S13-28X 

-4X63 

£19.04 

£19.53 

£1352 


Por lam irtan oOwwtoo stated p PencoAp. a Cants ft). > May. 


WORLD BOND PRICES 


BENCHMARK GOV ERNME NT BONDS 


Waak Month 




Coupon 

Date 

Price 

change 

YINd 

*9° 

^po 

Auetrrila 


9500 

08103 

110-2800 

-0.270 

7.92 

7.17 

656 

BaigUim 


7550 

04/04 

1005200 

+0520 

7.16 

758 

7.10 

Canada * 


6500 

06AM 

895000 

_ 

757 

756 

6.70 

Denmark 


7.000 

12AM 

100/4600 

- 

653 

854 

0.73 

France 

STAN 

0.000 

05/98 

107.2800 

+0.280 

5.78 

5.76 

5.42 


OAT 

5500 

04/04 

935500 

+0.870 

6.46 

850 

6-38 

Germany 


6500 

09/03 

975600 

+0.190 

650 

658 

659 

Italy 


&500 

01/04 

97.7700 

+1.660 

854T 

237 

955 

Japan 

No 119 

4.800 

06/99 

1085060 

+0.230 

358 

352 

350 


No 157 

4.500 

08403 

104.2080 

+0510 

358 

4.14 

357 

Netherlands 


5.750 

01AM 

95.5600 

*0.760 

657 

654 

6.24 

Spain 


10500 

10/03 

1085000 

- 

9.19 

8.94 

8.78 

UKQBts 


6.000 

08/00 

95-08 

+1602 

7.08 

7.05 

052 


US Treasury * 


ECU (French GovQ 8.000 

London d oatn g . ’Now Yoik dwtafl 
t Grom mute yWd (tadudnq aON 
Prices US, UK fti rends, odma ki i 


I tax at 1 1S par cent | 


7.49 7.78 7.18 

7 ST 7S2 7.33 

ft 84 ft 60 032 

0.75 050 Q.00 

ft88 ft94 851 

Vtotas: Local ratal sfmdvd 
Ip Of itam eU mui 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Maghreb Arab Union 
leaders hold summit meeting 
in Tunis lunlil April 3). 
TOMORROW: US clocks go for- 
ward one hour. 

MONDAY: Easter Monday - 
most European markets closed. 
TUESDAY: US leading indica- 
tors (February): wholesale 
trade (February). Mr P.V. Nar- 
ashima Rao, In dian prime min- 
ister, (mens nine-day meeting 
of the Economic and Social 
Commission for Asia and the 
Pacific (ESCAP) (until April 
13). International trade fair 
opens in Hanoi (until April 9). 
Communications Tokyo 94 
opens in Tokyo (until April 8). 
WEDNESDAY: UK official 
reserves (March). Full mone- 
tary statistics (including bank 
and building society balance 
sheets) (February); MO figures 
(March-provisional). Bill turn- 
over statistics (February). Offi- 
cial operations in the money 
markets (February). Lending 
secured on dwellings (Febru- 
ary). Sterling commercial 
paper (February). Sterling cer- 
tificates of deposit (February). 
Government deficit and debt 
under the Maastricht Treaty. 
French National Assembly 


debates Gatt agreement in 
Paris. 

THURSDAY: Details or employ- 
ment, unemployment, warn- 
ings, prices and other indica- 
tors. Index of production 
(February). Advance energy 
statistics (February). Housing 
starts and completions (Febru- 
ary). House renovations 
(fourth quarter). US capital 
spending (fourth quarter 1993); 
consumer credit (February). 
Mr Douglas Hurd, foreign sec- 
retary, visits Brasilia (until 
April 8). Mr Edouard BaHadur, 
French prime minister , starts 
three-day visit to China. BP 
and Lloyds Bank hold annual 
meetings. 

FRIDAY: Cyclical indicators 
for the UK economy (Febru- 
ary). Start of two-day informal 
meeting of the European 
Union’s financial and economic 
council in Athens. Indian bank 
and financial institution 
employees are expected to 
stage a one-day strike. Sir Pat- 
rick Mayhew, secretary of state 
for Northern Ireland, gives spe- 
cial lecture on political devel- 
opments in Northern Ireland to 
the Centre of International 
Studies in Toronto. 


Learn Technical Analysis 

on your PC. in the comfort of your home with the 
INPEXIa Hoat-Sfly Cwnt tt Tcctolitl A—lyxta 
only £25.00 . v*ticwjw) a few computer Program 

T-yhr.tait ilwt at dHX W«a porn*** 
INPEXIA Reacardi. 121 HlghSt Bc ikhwni fcA HP4 2DI 


1 x Daily Gold Fax - free sample 1 

x Jox Cluil Anjlyscj L;-.1 

Anne Whitby 

xex 7 Sivalicw Slroot. Lender ‘.ViR 7HL’, UK - 

V o V corrmodily ■ipccialid'd lor over 22 year* 

Tel. 071-734 7 174 

Fax. 07 I -439 49 ti 

□ ... 3..r. ,. cr 


FINANCIAL. TIMES WEEKEND APRIL 2/APRIL 3 1994 


COMMODITIES AND BOND PRICES 


metal's three months position 
closed on Thursday at $LS88J15 
a tonne. $8.25 off the day's low 
but still $68.50 down on the 
week. 

The foil, most of which was 
suffered on Wednesday, came 
as little surprise to big copper 
consumers and merchants, 
who had been' waiting for a 
"technical correction", said Mr 
Ted Arnold, metals specialist 
at the Merrill Lynch financial 
services group. 

"They wore hoping the mar- 
ket would cool down a bit dur- 
ing the summer,” he explained, 
“and were anxiously waiting to 
buy any and all price dips 
down from 86 cents a pound 
[$1-895 a tonne] to 80 cents 
[$1,763]." 

With demand for copper 
strong in the US and picking 
up in Europe and supply 
becoming “something of a 
problem", he doubted that the 
price would go much below the 
latter level in 1994 and thought 
tt should be back at 95 cents by 
the end of the year. 

Aluminium's supply/demand 
balance has also been improv- 
ing and that helped the LME 
market to show more resilience 
to speculative sales this week 
than copper. Hie three months 
price closed on Thursday at 
$l,314fj0 a tonne, down $18 on 
the week. 

US sellers sparked a big 
shake-out in the cocoa market 
although there were no signifi- 
cant fundamental develop- 
ments to justify the foil At the 
London Commodity Exchange 
the May futures position 
touched £882 a tonne before 
ending at £893, down £40 on 
the week. 

The Organisation of Petro- 
leum Exporting Countries’ 
decision last weekend to leave 
its output ceiling where it was 
appeared to be taken as the 
signal for traders to unload the 
cover they had taken against 
the outside possibility that the 
ministers would this time 
grasp the nettle of over- 
production. 

In consequence the June 
delivery position at London's 
International Petroleum 
Exchange was quoted at $13.38 
a barrel in late trading on 
Thursday day, down 58 cents 
on the week. 

Richard Mooney 


BASE METALS 

LONDON METAL EXCHANGE 

prices torn Amafearratod Metal Tracing) 


Precious Metals continued 

■ POLO COMEX (100 Trpy az^s/troyozj 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (E per tonne) 


SOFTS 

■ COCOA US (Wont*# 


Mt Day's 

price donga Mpb bn 


Close 1280-1 

Previous 1297-8 

HgMow 

AM Official 128Z5-3 

Kerb dose- 

Open M. 288,079 

Total dafty turnover 51.574 
■ ALUMMUM ALLOY ft por tome) 



fe 

8915 

+5.7 

3B45 

3075 10,116 23514 

Mfe 

110/45 

3 mttu 

"fe 

mo 

+5.7 

- 

. 

JU 

11156 

1314-6 

JU 

3945 

+47 

3985 

3905 82547 27.187 

Sep 


1320-1 

Mfl 

3964 

+55 

3985 

3835 8576 596 

Mm 

9450 

1317/1308 

Ost 

3995 

+48 

389.7 

3845 5.177 BZ1 

Jm 

8665 

131&5-7 

Bee 

4024 

+55 

4045 

3994 14,172 540 

Her 

8840 

1300.6-9 

Total 




M5£83 52,111 

Total 



■ PUVTUJM NYMBX (50 Troy <Z4 Sftroy ozJ 


Previous 
Wgh/tow 
AM Official 
Kart) dose 
Open M. 

Totf defy turnover 
■ LEAD (S per tome) 


1272-5 1288-80 

1285-00 1285-300 

129871290 

1280-1 1295-7 

1287-90 

4549 

450 


Ctoae 4445-S5 

Previous 44O&-0.S 

Tflgh/low 

AM Official 4445-54 

Kerb ctoae 

Open W. 36538 

Total defy turnover 0204 

■ MCKH. (S per tonne) 

Ctoea 5575-85 

Previous 5530-5 


*f*r 

*no 

+115 42S5 4135 

1400 

14*8 

Jri 

4285 

+116 4375 4175 18580 

3427 

Oct 

4275 

+114 4355 4185 

1448 

63 

Jm 

4285 

+115 4295 4265 

581 

28 

Mr 

TBtri 

4295 

+115 

838 

2*5*8 

12 

5JOB 

■ PALLADIUM NTMEX (lOOTTo/Qi; 5/tR^f oaj 

ktar 

13550 

-055 14350 14350 

- 

- 

JM 

138.75 

44.15 137J5 13355 

3476 

615 

Sep 

136.75 

+4.16 13640 13426 

424 

6 

Dee 

IMrt 

13650 

+4.16 

281 

*561 

2 

set 


Sett Dan <*■ 

price dangi Hgji La* kt 1M 
Dm 110,45 +15S 110,25 10955 1501 108 

jm iii46 +ta mao iiaso rat az 

Sep +0.10 9190 93J90 419 10 

NH 9440 +020 9450 S4JU 1(220 73 

JH 068S +020 9655 9650 684 56 

Ita ffl-M +02S 9SJ5 MT 81 

Triri «e 

■ WHEAT C8T ROOOba nrin; canta/BCfe fcaftgQ 
May 32918 -310 33VD 32710 83,120 9525 

jri 323/2 -5(0 3280 32110110570 12530 

Stv 32512 -5/2 33W 32410 19/80 2590 

Dee 3331S -5/2 338/4 333/2 24555 £480 

Mr 335/0 -612 - - 850 110 

33518 « ■ ■ 5 - 

Total SOffK 

m MACE C9T (SJOO bu min; cerns1581b bushel) 


Sett Day 1 * Opmt 

price rings up m tot w 

Hr 833 +33 870 970 12 8 


882 10,102 2302 


-« 913 903 10,482 1.4S0 


920 920 11.435 606 
946 940 17,186 1,172 


963 -71 m 961 2*940 1&3 

mjn 7570 


■ SILVER COM EX (100 Troy az^ CanWtrgy ot} 


Ctoea 5575-85 

Previous 5530-5 

HJgMaw 

AM Official 6670-5 

Kerb dose 

Open InL 48,006 

Total defy turnover 8,726 

■ THl (S per tome) 


5640-6 

6592-5 

666015580 

5630-5 

5660-5 


Apr 577.1 +145 S 

EKy 67X5 +145 5799 5600 71.653 2248Z 

JU 5827 +145 5640 5710 19383 1,788 

Sfe 507-2 +147 5800 57015 5502 321 

Bn 5934 +T45 5950 5840 10004 362 

JM ' 595.7 +148 Z8 

fetal 117,700 25,348 


ENERGY 

■ CRUDE Oft. NYMSX (42.000 US gsSa- Sftnrreq 


Close 5420-30 541 

Previous 5410-20 54t 

tfighAow 5410 6471 

AM OfBctaJ 5405-10 54 

Kerib dose 64t 

Open InL 10,104 

Total defy turnover 3075 
■ ZINC, epectari Mgh grads {£ per tonne) 


5470-60 

5465-70 

647015460 

5460-5 

5460-80 


Sett Mfe 
price tfrege 
14.7B +041 1440 

14.90 +ft4Z 1502 
15.02 +040 1506 
15.15 +0L38 1500 
1529 +0.37 15.40 
15.44 +037 1500 


Ctoae 
Previous 
hftgMaw 
AM Official 
Kerb doss 
Open InL 
Total dMy be 
■ COPPER, i 


934-5 

9380-400 


LOT tat 

1423110092 
1429 7EL65Z 
1453 37060 
1467 20080 
1485 22295 
1502 11065 
411,100 


May 274/6 -W2 283/5 272/4533225 70550 

Jeri 279/6 -7/2 28616 279/4592X45 42X80 

5m 256/2 -610 273/0 267/21334*5 5,100 

Dec 25641 -4fe 260/2 255/2322^75 20340 

Her 2B312 -310 2ESM 262/4 21235 550 

ny 268/4 -W 27WD 266/4 1X10 - GO 

Tew vamvnm 

■ BARLEY LCEP per tor . 

Iftay 10705 -0X5 - 153 

SM 9400 +026 9450 8450 138 ft 

Hw SftOO +025 104 

Jm 97.40 -fl.10 - tt - 

nr 88.40 . 7 

Total <12 ft 

■ SOYABEANS OBT fiOOIBu afti; cafcBtft tuttap 

ny 681 AS -216 6B9/2 600/4270505 74310 

Jri 883/4 -7(5 69U0 082/4257409 36,465 

Jtag 67710 -712 664/2 676/4 41,390 2535 

Em 656/4 -5ft) 684ft) 658ft) 23520 1.885 

dev 645/4 -A ft) 650ft) 6456)186.415 32.656 

Jm 650/2 -«) 85510 650ft) 15.400 810 

IMrt 7825tat5QJE2D 

■ SOYABEAN 08 . CBT (BOJXXXbK centa/Bi) 


: Ott. IPE ff/baral) 


Sett Bay*, 
pica cbMge 


ny 28L77 -028 29.15 28J4 30,154 5,128 

Jri 28.71 -094 2000 28X5 20400 0903 

Aug 2037 -014 2055 2828 0286 1JM4 

SM 27X8 -008 2005 27 JS 0646 830 

ON 2097 -015 27.15 3095 75S 253 

Dec 2044 -007 2054 2032 13347 1,594 

DM 100483 12jm 


Open ftiL 100S16 

Total defy tunover 28.600 

■ QOPPBI, grade A (S per tonne) 

Close 167B-7 1 1688-05 

Previous 1878-7 1800-05 

ffioMov 1601/1882 

AM OttkftN 1890-1 1900-1 

Kerb erase 1900-1 

Open InL 210,273 

Total defy turnover 7ft296 

■ LAE AM Official OS rale; 1.4841 

LME doning E/8 rate: tgg 

Spotl.4696 3nth*1.4847 6 mtlKl+aiS S mtel.4787 

■ HH3H CRAPE COPPBH (COMBO 

Bay's Open 


Mgr 

il® 

. 

1340 

1118 5753* 

14789 

■ SOYABEAN MEAL CBT (100 tons; S/feffi 


Ju 

1134 

+056 

1139 

1128 43475 

7,737 

Key 

1917 

-25 

1955 

1925 24,835 

4417 

Jri 

1147 

+006 

1151 

1349 18,894 

1457 

Jri 

1945 

-15 

1B5J 

1915 28488 

2,702 

tag 

1181 

+058 

1354 

1183 115SB 

1588 

tag 

1917 

-09 

1844 

1912 6549 

557 

Sap 

13.73 

+006 

1177 

1177 6477 

194 

Ssp 

1915 

-06 

1935 

1815 5,789 

188 

Oct 

1358 

-051 

1350' 

1160 2597 

37 

Oct 

1905 

-15 

181.1 

1804 1479 

205 

fetal 




147,123 27,131 

Dk 

189.4 

-1.1 

1803 

1802 8508 

BB1 


■ COCOA CSCE (10 wnwas; Sftonrioe) 

Day 1148 +2 1158 1188 27,71ft 5£*1 

JBT 1179 *3 IJ84 1186 23/92 1J3Z.' 

Sm 1205 +4 1208 1195 9/57 293 

Dec 1238 +3 1844 1281. . 6/25 56* 

nr 1267 -? 1Z75 12S7 8710 472 

to 1282 +1 1291 1291 0534 203 

IBM BftSftl 0080 

■ COCOA gCCO)gqfTB/tonne} 

nrfto Prim ftw+i* 

Daly 896X2 • 89115 

liar 31 

10 day aarege 938.7S 94003 

■ COFFEE LCE ffitorma} ■ 

Bar 1380 +41 1345 1340 50 67 

my 1360 +7 1361 1350 13/49 624 

M 1363 +7 1383 1352 16,780 1,185 

SM 1355 +3 1339 ISO 6X86 309 

tar 1358 +8 1380 ISO 4JBZ 1Z1 

Jm 1360 +5 1301 1361 0272 10 

ItaU 4734 Z3tS 

■ COfflg *C CSCE p7XOOO»: cente/tt)^ 

May 8220 +1B5 82X0 8080 SOJOtl 0271 

M 83.75 +13 84.10 82.40 1*325 1.408 

SM ' 85.10 +1.10 85.40 8325 6^81 356 

Ok 8625 +1.15 8665 65.10 3638 316 

tar 8720 +120 872 D 8820 1X65 364 

Kqr 6865 +025 8720 672) 234 5 

Tetri 57,489 7 JIB 

■ COFFEE gOffi (US centa/pound) 

Mar 36 Price Bk day 

Crop. My 77.18 7720 

15 das Wltoqt 7720 7764 

■ No7 PBHIHUM RAW SUQAB LOE fcanlaftfaa) 

Mm 1211 +001 1230 1210- 977 140 

Jot 1255 +005 1260 1260 2778 B 

ON 1260 +005 - 220 

Jea 1166 +005 .... 

TDtal 3673 146 

■ WHITE SUGAR LCE CS/tonne) 


MEAT AND LIVESTOCK 

■ UVECATn£C5E(4a60M»;i=» lM<M > 

Sett DM^ °N" 

pries ririBoe ffi#> in . U W 

ta ' 76£5 40229 7E750 78275 Z7644 8288 

jm 74275 +0350 74300 73625 262*7 MM 

tog 72475 +0.175 72650 722/5 12878 1£ 

ON 71825 +067S 73.725 73.475 10688 688 

Dee 73600+0.100 73.950 71750 3.053 113 

M> 73650 +0050 73.700 736® 1^0 20 

Tom • 816" HO® 

W UVE HOPS CME (40,0000b; cente/tori - - 

ftpr 40850 +4L400 46625 48650 ON ‘ - UK 

Jm S3850 +0J5C 53,100 52650 1&229 U/ft 

Jri 52.175 40.175 62AM 52.100- 4fl«9 1635 

tog 50.175 +4200 90400 SftIQO 26® S 

ON 46.175 +0J75 46350 48.125 1,782 224 

Dec 48.725 -0650 47.000 46600 269 7 '117' 

TgM 91660 1VB 


\5® S 


<,( IV" 


U PORK BP 1188 CME WQJOOtos; centeribe)" 


57X75 +0625 57600 .56650. <6® . 1)143 
57^5 +0675 57.750 566® 3 &B. 9U 
54900 +0900 56690 54600 . 5B3 
57X50 +0.100 58550 57600 W .14 
57600 +0626 56600 57600 ' 11 . 3 

57600 - - . - : I 


960# 1644 


LONDON TRADED OPTIONS 

SMhe arias X ton>+ — Cato-— — Pta»^~ 


Sbfta prica S tonrt* 

■ ALUMMUM 

(99.7%) LME . 

1300 

1325 

1350— 


May ,Aug May :Aog; 


(Grade A) LME 

1900 

1950 — 

2000 

■ COFFEE LCE 

1300 

1380 

1400 

M COCOA LCE 

876 

900 

SES 


I OB. MVSE4 j42JOO US eta; dU5 priaj 


Bay's Open 

Ctoae change Hgk taw brt Vai 

8660 +025 8665 8660 1600 390 

88.75 +060 87.10 66.10 346B6 17.293 

8869 +030 8740 8&35 730 11 

8740 +030 8730 8840 15,514 3661 

87.10 +040 8740 8660 441 2 

87.15 +040 8765 8840 4417 T.1S4 

M4W 1260B 


pries etaoge Ugh Lew tat M 
Apr 4060 +075 4840 4450 10310 17454 

Hey 4447 +162 44 40 42.15 56688 17,738 

to) 43.77 +T49 4440 4245 «UH6 6458 

JN 44.17 +169 4440 4240 25.440 2,151 

tag 4467 +164 44.10 4360 114*9 1.414 

SM 4562 +1.19 4555 4453 8404 798 

Tetri 188,144 48484 

■ QAS OH_ re (S/tonm) 


TOM 18400 

■ POTATOES LCE (E/tonne) 

Apr 2K5 -14 2084 2654 60S 

May 2025 -05 2064 2034 S68 

Jan 1300 2 

Nov 704 

Mar 1054 .... 

Pgr 1274 -02 1275 1Z75 

Tetri 1430 

M FREIGHT (BtFFEX) LCE (SIOAndax point) 


Hoy 34350 +260 343.40 34060 6588 579 

tag 33860 +Ol70 33060 33960 7^18 1434 

ON 31540 +140 31640 31440 5JB16 334 

Bee 31040 +150 31040 30940 141 66 

Mar 31020 +160 31 040 30940 803 101 

May 41140 +140 410,10 3KL10 200 1 

Tsai 28,730 3,115 


1300 

1360 

1400 


30 

-66.. 

. 32 

..'47' 

19 

52. 

45 

: .a» 

12 

42 

84 . 

74 

May 

Aug 

May 

M 

36 

n 

40 - 

»■ 

17 

49 . 

71 ■ 

94.. 

7 

33 

111 

127 

May 

- JM 

.M* 

Jri . 

69 

91 ■ 

a 

20 

36 

62 

25 

■48 

16 

40 

55 

.77 

May 

Jul 

Mar 

Jri: 

28 

60 

10 

24- 

16 

46 

22 

35 ■ 

7 

36 

38 

43 

May 

Jui 

May . 

■jui 

. . 

. 

17 . 

-46 . 

15 

- 

40 

m 

5 

r . 

79 : 

.ay 


LONDON SPOT MARKETS 

M CRUDE OI. FOB (por bairoi/May) +or 


■ 5RWAW *11* CSCE (1124006”; t^ntalteaj 
Mm 1146 +041 1148 1168 S2jU8 


1146 +041 1148 1168 S2jU8 5,114 
1222 +045 1223 12.14 37539 24® 


Outxft X12.1S-2.23w *0296 

Brent Here* (dated) J 13. 17-4.19 . +04ft 

Brent Btond (May) $1367-369 +0.19 

W.TJ. ft pm eiaO SI 449-4. 40>v +010 

■ 00. PRODUCTS IWEproiTi(Sde!lveiy Cff(tainQ) 


1177 +OOB TUB 1164 31457 1,266 
1163 +007 11.44 1163 H58S 548 


1142 +047 11.40 1165 1420 1 
1160 +047 1148 1148 1466 18 


PRECIOUS METALS 


M LONDON BULLION MARKET 

Prices ererpried by N m BothscMd) 

GoM (Troy oz.) % price E eqiiv. 

Ctase 38960-390.00 

Opening 387.60-386,00 

MomtoQ fix 389.70 262.963 

Afternoon fix 38960 282453 

Day-8 High 389.76-39045 

Day's Low 387.60-388.10 

Preutaus does 38&50-3aaS0 

Loco Ldn Mean Odd LenNng Betas (Va USS) 

1 month 3.33 6 months 357 

2 mraitta ____._3.38 12 months 355 

3 ni unUa — 6.41 

SSvor Rx 
Spot 

3 iTx jnUn 

6 months 
1 year 
Gold Coins 
Krugerrand 
Maple Leaf 
New Sovereign 


prise cfaaage High Low to Vei 

rigar 137.75 +160 13860 13725 22,127 36GS 

■toy 13640 +1.75 13625 13565 21632 2437 

Jot 13560 +16D 13665 13540 22679 1,330 

Jri 13660 +165 13765 13B4Q 13652 716 

ling 13650 +165 13840 13840 6,148 402 

Em 14060 +0.75 14140 1404Q 3448 18 

TBtri 114421 9662 

M NATURAL CAS NVHEX [10400 Marita; MnmBtft) 

Sett Bqto Open 

price change Ogk Low M «ri 

May 2475 +0.017 2480 2050 17,704 2403 

Jm 2487 +0417 2490 2488 11486 648 

JN 2492 +0400 2.100 2463 10444 048 

Pag 2_1 00 +0404 2114 2100 10406 522 

trip 2133 - 2139 2130 10448 272 

ON 2170 -0405 2173 2185 6.401 269 


Mar 1242 -3 284 

Apr 1260 -5 1270 12E3 1605 99 

MM 1265 - 1275 1263 880 67 

Jri 1133 -6 1136 1135 565 3 

ON 1270 +27 - - 231 

Jm 1308 -10 - 144 

Tetri 247B 136 


■ COTTON NYCE POOOOBjs; cante/lbe) 

■toy 7861 *0.10 7278 77.77 20837 6470 

Jri 7843 +0.18 79.40 7861 15423 2422 

ON 7445 +0.13 7565 7440 26«9 172 

DM 7273 +060 7240 7245 1*628 1,170 

Ur 7368 +068 7360 7360 740 SB 

May 7460 +065 7460 7445 237 7 

Tetri 64467 ftWO 

■ ORANGE JUICE NYCE psjOOttre; cantaftbe) 


Premium GaeoBne 
Gas 08 
Heavy Fuel OH 
Naphtha 
JN Fuel 

HMolaun Ague SMnrire 
M OTHER ■ 


nr 

10749 

-2.15 108® 10075 

7721 

921 

54 

110.15 

-240 11256 10850 

5515 

428 

Sep 

112.40 

-1® 11445 11245 

2400 

41 

tar 

111® 

-1.45 

1,181 

47 

Jaa 

11275 

-1® 11440 11250 

2,102 

3 

titer 

11545 

-075 11050 11550 

320 

85 

Total 



1fe484 1JRB 


p/troy or. 

388.70 
00140 
396.05 

407.70 
S price 
390-303 

40065-40275 

90-03 


US cte equhr. 
57360 
67865 
564.75 
50660 


ON 2170 -0405 2173 2185 6,401 269 

Tetri 119407 5.74B 

■ UNLEADBJ GASOUNE 

BTMEX (42400 US pfc; C/US QaBaJ 

SMI Dqto Open 

yaks cbmge iSgh LOT tat W 
Apr 4840 +167 4940 4460 8.453 1544* 

MM 47.43 +140 47.70 *5.15 556B3 1845B 

Jaa 47.GZ +14B 4740 45.65 29472 6.425 

Jll 4762 +164 47.70 45.85 KX47B 2510 

Abo 4767 +1.47 47 JO 4560 8488 780 

Sm *647 +1J7 4840 45.10 5488 126 

TaU 123JB8 4340* 


Wool 

Although Aua trala n auctions ended tost week 
for the Easter recess, there was a New Zealand 
eria on March 30, aa we* as a Bradford sale of 
Scottish wool through the British Wool Market- 
ing Boanl Prices at both aietions comparad 
with recent Bales were vary mariy dewar, and 
for a vride range of cosaer croe efa red wools a 
Dttie cheaper. The Bradford sale also saw 
reduced competition, with only 75pc of the 
olhrlng gatog to the trade. The British wool 
sector has tor some time been aff ected by an 
oversold position said to be reached some 
months ago by merchants and sources In the 
crepet sector, with a recovery In demato plac- 
ing pressure on avaBabie short-term auppBea. 
This weeks ojctton seems to kxlcatB that 
those preesuroB may be to ea anin g . 


VOLUME DATA 

Open. Interest and Volume data shown tor 
contracts traded on COMEX. NVMEX. C8T. 
NYCE. CME and CSCE ere one day in arrears. 


INDICES 

M HEUTH1S (Baaa: 1Bffi/31=.H 


Mir 31 Mar 30 month ago yearago 
18254 1832.8 17884 1714.7 


Gold (per troy oztf 
Starer {per troy oz)f 
Platinum (per troy az.) 
P^actom (per troy oz.) 
Coppw (US prod) 

Lead (US prod) 

Tin (Kuala Lumpur) 

Tin (New Yarik) 

Ztoc (US Prime W.) 

Cattle Ohm waightyt 
Sheep (five wrighOt* ' 
Pigs (Rve welghO 
Lon. day augw (raw) 

Lon. dey sugar (wtaj 
TNa ft Lyle export 
Barley (Eng. feed) 

Maba (US No3 Yolow) 
Wheat ftJS Dark North) 
flubbv (Mey)f 
RNtoer (JuffiV 
Rubber(KL R8S Not Apr) 
aJtocbnut « 034$ - - 

Prim 01 P4ata-)§ _ 
Copra (Piri)6 
So y abeans (US) 

Cotton Outlook A bidax 
Wooltcps (64* Super) 


£152-164 

£140-141 

£86-68 

£127-130 

£150-168 

+15 
-1 ' 

+2. ' 

£389.76 

+KB 

67150c 

+1L0 

$410.00 

+850 

£13150 

-046 

92.00c 

.-loo 

36.00c 


14w31r 

-am 

261.00c 

-15 

Unq. 


12853p 

-1-43* 

132-lip 

-255- 

7756p 

-052- 

£289.50 

+3-50 

£340.10 

'+140 

£308.00 

+250 

Unq 


Unq 


£180-0* 


7U76p 

-045 ' 

71.00p 

-046 

26750m 

+050 


i CTB Fubaee (Beae: 4/B/56°100) 

Mar 30 Mar 29 month ago yearago 
22561 22847 22749 21168 


E p w tow wtaee oO w wli e awcat p penoafteg. c emtoftb. 


r rtmuMto. m lUato ua ta fe . z Mofe. » Apr ■ May. 
t MayfJwL x Apo/Mqf- V London tovriori. S ca= nmw- 
dm\ ft .Button martial dom ft Shwo — I n W prfcool * 
Changa on waak. pnwWanri prfcaa. 


US HfTEREST RATES 

area (Apr 1) 


LONG G0LT FUTURES OPTIONS (UFFQ £50,000 648W of 10096 


Prime rata 

Markanrto 

FrtJiBdi 

PaUinta ■ tatatwnhM-. 


Treaury Sk and Bond Vtaftk 

Owmondi - Two par 

S’* Taancrit • Three yaa 

5 Une mondt 349 Hvenear 

t St nofli 485 i<H» 

Osb rear 449 afyee 


540 

545 

8.45 

645 

769 


strew 

Prica 

Jun 

■ CALLS 

Sep 

Jun 

- PUTS 

Sep 

108 

2-OS 

2-33 

1-60 

3-19 

109 

1-42 

2-06 

2-30 

3-56 

110 

1-16 

1-47 

3-04 

4-33 


BO. ML M, Cote 4203 Rite 3847. PiWm CayH opm ML. CWb B071B Pula 73007 


M U8 TBEASURY BOND RTTItoBB (CBT) SIOOJIOO 32nda Of 10056 (Apr 1) 

Open Sett pride Change H^i Low Eel. wL . Open M. 
Jun 108-18 103-24 -1-18 108-28 104-18 381^10 375425 

Sap 105-21 103-03 -1-2l 105-20 103*1 2463 44,658 

Dee - 102-14 -160 - - . 21 1,178 


BOND FUTURES AND OPTIONS 


Franc© 

M NOTIONAL FRENCH BOND FUTURES (MARF) 



Open 

Sett price 

Change 


Low 

Jui 

123.04 

12184 

+0.70 

124.10 

123.04 

Sep 

12244 

123.10 

+0-74 

12340 

12244 

Dec 

121.64 

122.40 

+0.74 

12154 

121.84 


Ecu 

■ ECU BOND FUTURES (MATTf) 

Open Sett price Change 
Jun 69.66 90.12 +062 


EsL voL Open ML 
2245 6670 


Japan 

■ NOTIONAL LONG TERM JAPAICSE OOVT. BOM) FUTURES 
CUFFB YlOOm IQOthe of 10018 

Open Ctoee Change High Low EeL vol Open InL 
Jun 11240 - - 11260 11260 2891 0 

* LWE comas nded on APT. Al Open Menw figs, ere tor prevtoue day. 


M LONG TBtoft FRENCH BONO OPTIONS (MATff) 


Strike 

Price 

Apr 

- CALLS — 
Jui 

Sep 

Apr 

— PUTS — 
Jui 

Sep 

123 

094 

2.02 

- 

- 

1.15 

- 

124 

- 

1.40 

1.73 

0.16 

152 

- 

12G 

- 

055 

1.33 

1.18 

2.10 

113 

1® 

- 

055 

- 

2.1 B 

2-68 

- 

127 

- 

030 

- 

- 

3.41 

- 


FT-ACTU ARIES FIXED HfTEREST INDICES 


UK Gits Price Mces 


, Can 41.104 na 31.008 . Preriowi oaf* 1 


1 kit, Cria 307.174 Puts 286627. 


1 Up to 5 pare (M3 

2 5-15 years (234 

3 Over 15 yi etm 

4 toed eemri toe p 

5 AlrioctaftB) 


Rl 

Day’s 

Thu 

Accrued 

xfacf 


Fri 

Day’s 

Thu 

-Acouod 

xd ad 

Mar 31 

change tt 

Mar 30 

interest 

yield 

Index-Mad 

Mu 31 

changa tt 

Ma 30 

Internet 

yield 

12552 

1052 

12457 

250 

256 

8 Up to 5 yeera(3 

18459 

-KUJ7 

18458 

052 

253 

148.79 

+054 

147-66 

1.78 

4.03 

7 Over S years pi) 

18029 

+041 

179.72 

051 

1-29 

16823 

+091 

106.72 

154 

353 

8 AS Kocfcs (13) 

179® 

+029 

17948 

0.72 

1.41- 

19456 

+259 

19(158 

355 

1.47 







14S40 

+076 

144.17 

147 

3 AS 

9 Dote and loans (73) 

13657 

+1,71 

13449 

253 

127 


Ylakta Iter 31 Mar BO^Wtoo” Low My 31 Mar 3Q IW Yr r aff l,W8 iff* Low Mar 31 Mar 30 Low 


Germany 

■ NOTIONAL OBTMAN B1M0 FUTURES QJFFg* DM250JMQ lOOlhs of 10096 

Open Sett prica Change HBgh Low Eat vol Open InL 
Jun 9664 98.77 0.40 9603 9661 9S722 199843 

Sep 9562 9648 048 9665 9562 22 5420 


15 yra 

20 yra 
grant 
tndax-Onfcad 
Up to 6 yra 
over 5 yra 
Dataotajgano 


7.10 76B 

749 7.70 

7.68 7.79 

740 7.96 


74B 6.73 765 (28^1 5.57 (31/12) 

7.70 7.77 747 PW3T 668 01/13 

7.79 843 746 (29/33 647 (31/13 

7.96 240 8.08 {25/3^ 642 (24/1 1 ) 

Innatoo rate 5* Irtettan rate 1096 

361 3-19 268 361(31/36) 244 01/12) 229 225 148 269 01/31 1.19 nWffi 

3-41 3-42 3.40 34fl (25 246 (31/13 363 364 362 340 (25/31 248 (31/12) 

Syeora — — — IByaara 2Syeant . 

8.70 8.B3 151 189(29/31 7.03 01/12) 8,75 634 966 944(19/1) 749(20/11 8.79 848 940 10.10 (19/1) 7.48(20/11 

redemption ylelda are shown rixwa Coupon Bands Low; 0K-7^W; MorJum; 8%-104iK; High; 1196 and over, f Hat yield, ytd Year to data.’ 1994 HIGH/LOW. 


743 742 699 749 < 

7.70 7.78 862 747 1 

7.70 7.78 847 748 I 


8.78 Ql/12) 
648 (31/12) 
6.42(20/1) 


7.45 742 

747 846 

740 748 


7.1B 748 (29/31 548 01/12 
640 865 (29/31 649 31/12 

842 8.16 (29/3') 641 31/12 


1 01/31 1.19 na/a 
I (2501 248 (31/123 


B BUND nJTURES OPTIONS (UFFE) DM2S0.000 points of 100% 


Strike 

Price 

Jui 

CALLS 

Sep 

Jui 

PUTS 

Sep 

9800 

144 

154 

D.97 

158 

9700 

OSB 

140 

141 

154 

9760 

074 

1.09 

1.47. 

2.13 


Average gross redemption ylelda are shown rixxre. Coupon Bands Low; 0K-7^W; 

FT FIXED INTEREST INDICES 

Ma 31 Mar 30 Mar 29 Mar 28 Mar 28 Yr ago High* Low 


CULT EDGED ACTIVITY INDICES 

M* 30 fear 29 Mar 28 


Eat voL Botal, Ota ICB29 Pure 13157. Pnevtoce day's open ml, Cta 277308 Pure 235242 


mw 31 Mar 30 Mar war zb Mar zb Yr ago ragrr low Mj 30 fea29 Mg 28 Mw2S Mer24 

Ckwt. Seas. (UK) 9746 9644 96.97 9641 9640 9648 10740 9368 OK Edged bargatae 1324 1204 100.1 115.7 152.3 

Fbosd Interest 115.96 115.14 116.45 117.78 117.53 112.67 13347 112.94 5-day average 1246 1176 1124 1104 1074 

■ lor 1993/M. Qwwmtrt EecuBea Ngfi otece coroptlatore 1Z7AO pnraq. km 49.10 (3/1/75). Find Interest Hpi rinoe oonpe a ti u re 13347 (21/1AM) , tow 5043 (3/1/7S) . BMW 100: Qouemwe SaartkM 16/ 
10/20 and toted tottvest 1928. SE axrvfty tadlcee nftesed 197* 


UK GILTS PRICES 


■ NOTIONAL MEDIUM TERM GERMAN OOVT. BOM) 
(BOemUFO* QM250.000 IQOthe of 100% 

Open Son price Change rtgh Low 

Jiai 100.71 10043 0.18 10048 100.71 

Italy 

M NOTIONAL ITALIAN GOVT. BOND (BTP) FUTURES 

(UFFET Ura 200m lOOlhs of 100% 

Open Sett price Change Hfeh Low 

Jtn 111.70 11244 144 11348 11147 

Sep - 11249 14-1 


tat' W nBd PrtcaE+»- 


_ 199319*- 

Ugh Lnr 


- 'fteU ~ - 1903/9* - 

Int Red Mceg+ar- Ugh law 


EsL wol Open InL 
108 2287 


EeL vol Open InL 
55952 102942 

0 22S 


■ ITALIAN OOVT. BOND Q3TP) FUTURES OPTIONS jUFFE) UraZOOm lOOlhs of 10099 
StrWe CALLS PUTS 


Price 

Jui 

Sep 

Jui 

Sep 

11250 

244 

3.12 

250 

3.13 

11300 

050 

258 

244 

348 

11350 

154 

256 

250 

167 


EeL wL tetri, Cta 6845 Puts 3*88. Pwtow day’s rpon InL Cta 7*930 Puts 79378 


swer (u*m m is nve rang 

Bril l&fcK 188* IS® 

Tran, tone La 1994»— 941 

Bril 12>MC 198* 12.15 

TOTS 9pc 1894# B® 

1jpc1995 11*1 

Briitocesao-ss — 107 

uM+peigre i7i 

THtel ia*ipe 1BB5t4 11® 

14PC19SB— 12J4 

tunic lanett 12® 

fedl13tolc19BB» 11® 

Onrerion lGpe1B96 — 936 

TiMsiattpcISBTtt — 1125 

Bril HMmc 1907 8® 

Tran stoic ream A3i 

WifSpC 1897 12® 

9111X1998 B3B 

Ireai 7*tfc1B9BH 720 

Tita 61«*ia95-0Btt- 678 

llpcW-1 113* 

Trees 15'jpt ’988 — - 1(4* 

Brii tape 1886 1068 

Trite 9fex 1999# V2 


too 

6.13 into -A 

60* 102% -A 

564 lCCfi 

S47 1D5A -A 

5.13 97Uri 

5.72 1037. 

U3 110U +A 

UB 113)3 +,’. 

&ani7^« +■« 

626 1131s + 1 * 

043 107B +% 

ore IITTi 

865 1(B)) +lj 

are ire/. -A 

7.11 12*f|ri +A 

7.13 1089, 

7® IMS +(i 

722 89> z ri +B 

7® 123)3 +B 

729 130U +fl 

7.44 117)3 +3 

7® 10BJJ +% 


Hal 1121X2001 -4 

TO Fmam&tvelB-t 

into Co «i a taiBtMx2P0*_ 
Trite etox200*H — 

'02* (tope 200* ft 

1®*+ Com 9 >z pc 2805 

Trias IZijpc 2003-5 

7few200Bt* 

^ fee2«E-et|:__ 

RMiiifcpcairw — 
IS Trees «fj pe 2007 — 

OTA 

TllH fee 2008 « 

108)3 

104% 

13<I 

107ti 

j£A Oxr totem Tears 
Trite 6pc 2009 


_TMd_ _iware*_ 

taw (ft (Z) Price E +nr- Nji law 


681 7® U9Q +13 

459 an w, +fl 

643 7®1T2BX 

7.14 7 M 94 +?) 

7.14 1JC 9**2 +fl 
639 747113AN *h 

942 747 129% +fl 

7® 742 100U *S 

7® x.nioiftui *1*1 
651 7® mu 

7® 744 106^ to 

943 7® 137* +j) 

8® 7® 111 AM 


129)3 I Iff), 
88i «7U 
ia)3 iisto 
ios& 

02* 
vmi T35% 
1*3® 124A 
112)3 9*U 
11 H «A 
138A 118B 
life) «7ft 
151 B 131 A 
12*fi 10U, 


Tra»apc*B* - - 13733 — 1371a Wife 

(674) 245 3.10 ISM 204*2 t«H 

JWWt 11358) 261 ftOIIOBAM +*l 111A 105A 

ZJ2 no i69A +A un 1® 


ZJSiCtil (786) 2J2 110 TB9A +A 17S4 . 1® 

is a,ss; 5 :i 

*0B 100 124 174*. +A 18*A 169*+ 

aboelH. (7&B lie S67 13714- - +X 108,5 144 

SJzpc'II— .™(74S 121 140 W3H +)g 175H 1481] 

SJjpc'IS ms 125 142 . 135A 

2^penB_ (Bl4 3J0 1*6 144*« 


3 184A 169*+ 
(08,5 144 

175tt 148)] 
-to 1W* 122A 
+to 1ST*. 130B 


2^1*2^-. (8iro 135 1491381.* +*a 15ZH 1240 

2*^^' — 9/i) a« a® iwi tafi 

4J|«2W;^(1K.1J 135 148 115* +A 12W3 1031. 

Pmapecl^ rare rattempetonita on protected Infetori [ii 10k 
P"? 0) S’*- W figure In porerehsase show RPi bus for 
Indering (to a months prior to Issue) and hove been adjusted to 


152,8 Tiaea8irtpc7ino 

2M1 0BnvfesLia9ilfr_ 

1WA ^S 02012 » 

,D7 * Trees 6»*pea»-l2*t_ 

Tnte6pc2013)« 

7Lpc 20I2-I5tt 

Tws BVpC 2017#; — 

Ml 

111*2 

BW 

111 

*06)1 

124*. Dtotabri 

109B CnnsdsftBc 

fisy fertofflSiaictt 

A6h fern 3b pc '61 ML 

108b lritefecW/to 

97 ft CDxdsZbpc— ~— 

109% Trim. 2bps 

: Auceon beats, m Ex ifiridwid. 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MEFT) ^ter 3(^ 

Open Sett prica Change tftgh Low 
Jun 98.72 99.16 +020 B9 lB3 8840 

Sep - 9948 


EsL vai Open InL 
49682 97J379 


■ NOTIONAL UK (BLT FUTURES (UFTQ* £50,000 32nds of TOOK 


Open Sett price Change 
107-20 106-06 0-14 

107-09 107-07 0-11 


rtgh Low . 
109-00 107-03 

107-00 107-09 


EeL vol Open Ira. 
784*0 158534 

2 109 


ntetatotoeeltaae 

Bril lS’+K 1609 1025 7® 119A +H 

Trere 1lft|Xl99S 327 7® 113& +4* 

Trees fed 1099 ft 069 7® 95*] d *\ 

Cawwsbn 1D1.PC 1WG.. ft® 743 1123 

BpeZOOBtft — 636 7® 107* 

Trees UpcSUn 10® JM 1263 

1 0pe 7001 8J7 7® 112fl 

fee m tt 7.18 742 9?Bd 

feeDIA 7.17 744 <7fi 

AteJOU 8® 7® 11231 

SpcBXtttt 7.78 7® 102ft 

ifeeWB 8® 707 1151+ 

• Trir stock, tt Tm-ftw to noMaMents on 


■123 +U 
iBTSfe +% 
128ft +11 
112ft *ii 
n&d *U 
47ft +31 

uai +* 

102ft ilt 

115^4 


TJt 7® 103*1 +1% 
7.74 7® 87* +B 

DOT 7® 1124 +4| 

8® 7® 1124 +J, 

E.7E 7.44 014 

7.78 787 1034 +fl 

707 7 M 1014 +1ft 

7® 7® 1111) +U 

ft® 7X7 1404« +U 


11® 92,1 

OW 84* 
12® 100*7 
127ft 1004 
B4 TIM, 
1174| 9® 
114V 68*g 

128V 074 

168** 12® 


01 m “ 100 h lasr - 0«n* 

3.9*5. RR fa- July 1993; 140.7 and tor February 1994: 

Other Fixed Interest 


AMtaa DeviU, 2iHQ_ 

SS!Sa& 


_1903®4„ 

ttt BM WcaE+ar- hji Low 


a® -498+4 
7® -45*3 +14 
5.77 - 0OS| +H 

114 - Sfffcri +M 

7SI - 31%ri +*1 

a® - 31‘+X +*2 


Ctorina mldpi to te ere shotei 


tO 43*| 
S® 38% 
71 6B*a 
44V 33*a 
38*1 26V 
37V 27H 
Inpeunde. 


hbedCap 8^x10 

S0CCapl9fe____ 

1feV-i^ 

Hptaftrixci Sac 20iu 

}®*13 toe 2006 

IBwioodS^ieiraL 

UXSpcTOAR, 

SK&- 


8JB7 124 

- 1MV- 

- 101 
- 1lf«* 

ft® 132& 


- 2K, 

ft® 120*3 

748 - HP* 
4.19 13BV 
421 T31V 

- 143V 


ica iin 

138V HBJi 

W 114 
+%" BO 05 
— ; 119 Bl*a 

— m 109*3 
*3)5 170A IMA 

— 149V 19 

MV 33V 

— «*3 2BM 

— 136V 114 

— 78 63V 

— 150V 117V 

— 1*5*+ 115V 

— 159*3 132V 


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CURRENCIES AND MONEY 


“arkets report 



Doibr 


Sterling 


rises 



■■ ^dollar rose sharply in New 
• York yesterday after th^ 
release of strong jobs data 

■ +!™ O^teoing tn US mone- 
.^Policy, vnita- PHtUp 

■nnl^K ®* arc * 1 uon.-fatm payroll 
4 ®65P^rp U gtay d^Se 
ei £ ect * tio »s.- and the 
SS f?*"* since a gain of 
55 ®^00 jobs in October 1987 . 

tioU * r r 08 ® more Sian 
0,1 *** from 
to DML 6880 , Ijefore 
“PPmg back below DML685Q 
- ^^“^niJng trading-. ft was 
fuso higher against the yen 
trading above Y1Q3.60. Vol- 
umes were very thin on 
account of the Easter break. 

Activity in foreign exchanges 
was otherwise very subdued 
w«h most markets closed for 
the long weekend. 

Although the initial view of 
the US jobs figures was that 
they supported an early tight- 
ening; a closer look suggested 
a more complicated picture. Mr 


POUND SPOT FOHWAR 


Lacy Hunt, ehfaf us economist 
at Midland Global Markets in 
New York, said the labour mar- 
ket was in feet weaker than 
the h e a dli n e figure suggested. 

eating the low rate of growth 
in hourly earnings, and the 
deflationary effect of jobs 
growth in low-paying service 
jobs, he suggested an early or 
dramatic move from the Fed 
was unnecessary. 

■ The D -Mar k finished gmiffi- 

k» Mare York 



•;;Y*jpert 
107- 


Art. 

Espot 
1 rath 
amth 
1* 


1X7« 

L4721 

1.4081 

1X823 


1X705 

1.4775 

1X742 

1X055 


ally weaker in Europe on 
Thursday with evidence of 
position-equaring ahead of the 
Easter break. The largest move 
came from the Italian lira 
which, rase on hopes that an 
Italian government might be 
formed sooner than expected. 

After closing on Thursday 


j-v •'•••■• ■ ' 31 ... 

ten lira firmer in London at 
L96a3 against the D-Mark, the 
lint rose further yesterday to 
L969.75 after reports of a suc- 
cessful meeting between 

Mr Silvio Berlusconi, the vic- 
torious Freedom Alliance 
leader, and his alliance part- 
ner, the Northern League. 

Elsewhere on Thursday, the 
Bank of France cut its inter- 
vention rate by ten basis 
points to 5J90 per cent - the 
second such cut in the week. 
The franc ended slightly 
firmer, at FFr3.414 to the 
D-Mark from FFr3.419 on 



Frenchfranc 

WrperOM ./ 
r: 3^8 ~ -:r ~ 




944 


. Mm-1804' 


Si 


Wednesday. 

The escudo ended firmer, at 
EslQZ.7 ftom Esl(&2. after the 
Bank of Portugal lent support 
to the ailing currency by rais- 
tag Its emergency lending rate 
to 13 per emit from U per cent 

German call money rates fell 
sharply on Thursday to 5-25/ 
6.00 per cent, from 6.75 per cent 
an Wednesday as tight end-of- 
month conditions eased. 

In the futures market the 
June euromark contract firmed 
by three basis points to 9455. 
The December contract rose 
nine basis points to 95.00. 


■ Sterling: weakness persisted 
on Thursday with the US cur- 
rency finishing at DM3.4785 
against the D-Mark from 
DM2.4829. It was slightly 
firmer against the dollar finish- 
ing at $1.4846, but lost a cent in 
thin trade yesterday to trade 
below $1.4750. 

There was better news in the 
futures market where bullish 
comments by the chancellor 
Mr Kenneth Clarke about 
growth and inflation prospects 
revived hopes of an early cut 
in interest rates. The June 
short sterling future finished 


one basis point firmer at 94J53 
while the December contract 
was seven basis points higher 
at 9100. 

In the discount market the 
Bank of England moved 
quickly to remove a large 
£l.95bn shortage with two 
early rounds of asafstance 


Mar 31 E $ 

tmn 152353 - 152573 102650 - 1027a 
torn 2581-00 - 258700 174830 - 17330 

Kara* 0X405 - 04415 02968 - 02073 

MWrt 328200 ■ 32844.5 221193 - 821193 

8 «* 269043 - 2605X8 174630 - 175530 

UAE 04807 - 5XS37 3X715 - 3X735 


DOLLAR SPOT FORWARD AGAINST THE DOLlAP 


■31 


. Clewing Chang* SWoffer 
«*Hx*i4 on day spread 


1 


Bnpa 

Austria 
Botgkzn 
Donmarti 
- FWand - 
Franca 
Germany . 
Oaaca 


OaAMU 
Ugh tow 


Ummtnug 

Netherlands 


. Portugal 
Spain 
Sweden 
S-taHtancT 
UK 
. Ecu 
SDRt 


fSch) 17X731 
(SFt) 51*0812 
PKi} “9.7425 

(FM) aioei 
(PR) a.4640 
PM) 2X785. 
(DO 386.719 
(P5 10331 

W 238844 
tft) 513812 
FO. 2.7882 
<NKi) 1(17830" 
m 254X76 
pto) 2Q2J084 
(S») 11.6053 
' (SFl) 1 2J0916 
« • ‘ - 
- 13884 

. - 0954074 


400069 713 - 
-00868 416- 
-00303 365 - 
-00529 887 - 
-00249 992- 
-00044 771 - 

-0186 282 r 

-00035 318 - 
-2024 682- 
-00868 415 - 
-00061 844- 
-00288 793- 
-1338 302 - 
-0806 825- 
-00689 980- 
-00131 903- 


207 

484 

174 

687 

798 

178 

344 

928 

207 

880 

806 

957 

249 

138 


17X938 17X082 
51X036 509832 
9.7733 07240 
8.1940 8X610 
8X881 8X501 
2X880 2X734 
360633 364X18 
1X375 1X318 
241828 23B4J32 
612036 609832 
2.7923 2J791 
108241 107609 
268314 293X27 
202737 201X58 
11X987 11X889 
2.1086 2X871 


tead 

Canada 


Mexico (NewP«sb) 

USA « 


{P«W5 1X845 40007 841-849 1X800 1X798 

(Cr) 1365X0 . 46X4 667 - 822 1357X0 1351X0 
PS 


4X849 40019 795 - 902 4X002 4X723 

1X846 400068 842- 548 1.4885 1X798 


On a month 
Rata HPA 

Three months 
Rato WRA 

Ona year Bank at 

Rue KPA Big. Index 

Mar 31 

Ctosteg 

mld-pobit 

Change 
on day 

ewittfer 

spread 

Day's arid 

Wgh tow 

One month 
Raw HPA 

Three montfra 
Rate HPA 

One year j J* Morgan 
Rato HPA Max. 

17X753 

03 

17X887 

02 



1 13.4 

Europe 

Austria 

(Sch) 

11.7740 

-02395 

715 - 705 

11.7915 11.7360 

11.7825 

-12 

112212 

-12 

112327 

-05 

1032 

61 .1202 

-1.1 

512012 

-09 

51.4012 

-0.8 

1142 

ekrtglun 

(BFrl 

34.4085 

-0.187 

000 - 270 

343300 34.3750 

34.4885 

-22 

342035 

-22 

342G85 

-12 

1042 

£7537 

-143 

£706 

-12 

9.7757 

-03 

114.6 

Denmark 

(DKiJ 

63620 

-0.0461 

601 - 650 

0.5860 85532 

£5784 

-22 

£6029 

-22 

£6450 

-12 

1032 

• - 

- 

- 

- 

- 

- 

B13 

FWand 

(FM) 

5X016 

-0.0663 

666 - 666 

5.5310 6.4366 

5X683 

-12 

5.4781 

-1.1 

£4878 

-02 

752 

£4707 

-08 

04844 

-1.0 

£5003 

-04 

108.Q 

Franca 


£7014 

-02382 

995 - 032 

£7290 £6985 

£7139 

-22 

£7384 

-22 

£7784 

-1.4 

1042 

£4787 

-08 

£4808 

-OX 

£472 

03 

1233 

Qcvmany 

m 

1.6686 

-02093 

690 - 700 

1.6768 1.Q680 

12724 

-2.1 

12771 

-12 

12809 

-£7 

1052 

- 

- 

- 

- 

- 

- 

- 

Qieece 

w 

240.350 

-125 

100 - 600 

248290 245270 

24925 

-1£1 

257.1 

-172 

2842 

-152 

702 

1.0338 

-08 

12351 

-08 

1.04 

-07 

1023 

behind 

m 

1X370 

+£0101 

356 - 386 

1X386 1X299 

1X34 

£6 

1.4286 

£4 

1X136 

1.6 

_ 

238434 

-Ol 

2407.14 

-32 

246224 

-2.7 

773 

tody 

M 

180830 

-263 

615-804 

1630.75 1607-26 

1616.05 

-42 

182720 

-4.7 

T 08726 

-3.7 

7 72 

61.1262 

-1.1 

612012 

-09 

51X012 

-CO 

1143 

Luxembourg 


34.4065 

-0.187 

000 - 270 

34.5300 34.3750 

34.4886 

-22 

342035 

-22 

342885 

-12 

1042 

£7887 

-02 

£7885 

0.0 

£7841 

£1 

1183 

Netheriancb 

IFO 

13768 

-02105 

760 - 778 

12844 1.6739 

12796 

-12 

12835 

-IX 

12878 

-02 

1033 

1£7783 

£6 

1O7B0B 

-03 

10782 

OO 

84.7 

Norway 

iNKi) 

72041 

-00467 

027 - 655 

72046 72601 

72768 

-2.1 

72001 

-£0 

72391 

-12 

962 

266.6S 

-4JB 

257.695 

-4.6 

- 

- 

- 

Portugal 

<Es) 

171350 

-1.75 400 - 700 

172200 170.750 

172.405 

-£4 

17426 

-£9 

179325 

-42 

922 

20£589 

-an 

203-574 

-£9 

207.034 

-£4 

S5X 

Spain 


136.125 

-1285 

060 - 200 

136200 136220 

130266 

-4,7 

137236 

-4.4 

140725 

-ax 

802 

11X283 

-22 

11.6023 

-2.0 

11.7813 

-15 

764 

Sweeten 

(SK«) 

73174 

-02602 

136-211 

72738 72138 

72424 

-32 

72852 

-32 

£0084 

-2X 

812 

£08 

08 

£0865 

12 

£0588 

1.6 

1183 

Suritzariend 

{SRJ 

1X089 

-£0141 

084 - 094 

1X195 1.4066 

1X097 

-0.7 

1X101 

-02 

1.4014 

02 

104.1 

- 

- 

- 

- 

- 

- 

792 

UK 

B 

1.4846 

+02056 

B4Z - 849 

1.4806 1.4796 

1X827 

12 

1.4792 

IX 

1.4707 

02 

882 

1.2886 

-1.1 

12888 

-1JD 

12918 

-05 

- 

Ecu. 


1.1550 

+0.0076 545 - 555 

1.1681 1.1481 

1.1524 

22 

1.1479 

£5 

1.139 

1.4 

- 

- 

- 

- 

- 

re 

- 

- 

SORT 

re 

1.40974 

_ 

. 

. 

- 

- 

. 

■ 

- 

• 

re 

m 

. 

m 

m 

_ 

m 

__ 

America* 

Argentina 

(Peso) 

12000 

+£001 

999 - 000 

1.0000 £9999 



_ 

. 

. 

. 

_ 

- 

- 

- 

m 

- 

- 

- 

Brazfl 

PI 

918340 

-022 

335 - 345 

913235 913245 

- 

- 

- 

- 

- 

- 

- 

£0514 

06 

2.0512 

03 

£0561 

-02 

863 

Canada 

(CD 

13826 

+02044 

823 - 828 

12845 12780 

12838 

-1.0 

12889 

-12 

12976 

-1.1 

83.7 

. 

. 

, 

- 

- 

- 

_ 

Mexico (Now Past}) 

33578 

+0.0002 

550 - ECC 

32606 32560 

32568 

-OX 

32600 

-03 

3368 

-03 

- 

1X837 

1.6 

1X782 

IX 

1X707 

02 

653 

USA 

P) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1002 


AutfraBa (A« £1178- 400081 168- 198 Z1201 3.10® £1763 08" 2.114 07 2 112 03 

Hong Kong (HKSJ 11.4723 £0465 S92 - 753 11X83811X321 11.4583 IX 11.4538 08 11.4048 08 

" 405703 40.1741 558 - B60 48X160 48X190 - 

(VJ 152X38 -0524 427 - 848 153210 152X40 152.178 £8 157X38 3.1 147X03 3.7 1S&5 

IMS) 09860 1 -.4001-19 836 - 884 3X003 9X652 

2X571 -06 


PadDc/MBdcfla EeetMMea 


Japan 
Malaysia 

New Zealand (NZSJ 2X413 400086 380- 488 £6438 2X252 2X442 -IX £6486 -1.1 

PhOppInaa ffteeo) 40X988 401537 871 - fl» 41X100X00081 -- 

.Saudi Arabia -(Sflf- &5B75" -400209 858 - 691 .5X729 5X481 

Stogapora: '£3300 +0X079 287- 3T3 

SAfifca(COnJ ’ « .«j«74 400212 860- BBT 
S AMca (HnJ « 7X968 400199 .8741- 0S7 
South Koaaa 118025 - 44X8 790 - 881 

Taiwan (ISj 39.0734 40072? 463 - 974 38.1100 300100 - - - - 

ThaBand (BO 37X582 -»014 315 - 789 37X790 37X480 - - - - - 

1SDR rate to tfv n, SWbito ta Vw ^ Mai ah’* oofr iltt M *m dM*ad place* FonMtd im an h* Owa* anted to e» oaitat 

bdtara initotf tvemant Mnt naM. SMtag bdm cModImkI by ha BHAal Oghnf. Bin Magi fSH ■ VKUBU, OiShr aotf AtooMa at BWi tfu aarf 
Ow Dodar Spot taMw.iMUad tan THE HMmS/nSS CtO00KI SPOT RATES, m whMa m» reundid by ttw FX. 


CROSS RATES AND DERIVATIVES 


£3317 £3205 
6.1776 5.1422 
7X322 7X280 
1189X3. 1194X8 


Aueha Sa 
Hong Kong 
India 
Jepai 
Malayata 
New Zealand 
PHBppbm 
Saudi Arabia 
Singapore 
SAMcafCwnJ (RJ 
S Africa (Ra) (R) 


(A» 1X265 400002 255 - 276 

(HKS) 7.7278 400018 275 - 280 

(Rs) 31X700 - 675 - 725 

M 102.760 -074 700-800 

(MS) £6860 -0002 840 - 860 

(NZS) 1.7792 -00022 781 - 803 

(Ptao) 27X750 - 000-500 

(5HJ £7503 - 500 - SOS 

PS) 1X695 -00005 890 - 700 

3X308 400013 800 - 815 
4X150 -0.005 100 - 200 


1.4279 -1.1 
7.7308 -05 
31X35 -2X 
102X4 IX 102X35 
£676 £1 2X625 


1.4325 -1.7 1X432 -IX 

7.7388 -05 7.7818 -0.4 
31.57 -£B 

1.6 100X4 £2 

3X £725 -IX 


1.7804 -OX 1.7849 -IX 1X068 -IX 


South Korea (War) 607.150 *005 100-200 

Taiwan (75) 28X200 -005 100 - 300 

Thailand (BQ 2SX30Q - 200 - 400 

TSOR ism to U> 30. BU/Mar apraada in the Doear Spot UM* 
but an mebmi try cuntnr toeaest faou. UK. hvbnd & ECU or 


1.4302 1X226 
7.7280 7.7281 
31.3725 31X700 
103.450 102X00 
2X880 £6890 
1.7832 1.7740 
27.7500 27.4000 
£7604 £7502 
1X697 1X682 
£4870 £4885 
4X425 4X776 
807X00 806X00 
28X600 28X200 28X855 -30 
25X300 25X400 25X1 -3X 

daw only the IM tore deobnai ptaeaa. Rmwnl ratM are not re*cHy quotad to 
a quoted In US cunncy. JLP. Itogwr Indtow dxwn to Mr 31. Swanp 


8X9 


-ax 

ox 


£751 
1X689 
£4973 -8.7 
4X46 -8X 
810.15 -4X 


£7533 -OX 
1X884 OX 
£8233 -4X 
5.009 -7.7 
813X6 -3X 
26X88 -£5 
25X35 -£3 


£7848 -OX 
1X67 OX 
£8183 ~3X 

832.15 -3-1 

26X55 -£8 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 


M Ctt HOT 

4SFaBgwiltod,rM£rtge*T»2JD 0732770114 
CreWlDvraeFuM-l 4.7) -I Awls^Bk 

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2312 

£687 

10X4 

2482 

1953 

ri£4 

£025 

£968 

1387 

1.438 

1473 

1244 

ta» _ 

• $> .£189 

■ 0L4O8: . 

£364. 

£104 

0243 

100. 

£117 

0X51 

1087 

8X83 

0X86 

£088 

£0<2 

0266 

£062 

£388 

£054 

Wefteriande 

« toss 

2X87 

3238 

0280 

0371 

857.1 

- 1 - 

. £859 

91. 42 

7234 

4.167 

£751 

ft wo 

£737 

0333 

5*74 

£461 

Notwto - 

®4KrJ 4728 

£038 

7252 

2300 

£958 

2215 

2284 

10 

2383 

1873 

10.77 

1341 

0328 

1304 

1.378 

1413 

1.192 

Portugal 

(69 2026 - 

3236 

3323 

£973' 

0406 

9372 

1294 

4232 

MXL 

7933 

4358 

£821 

0383 

0306 

0383 

5937 

0305 

Spate 

(Pte 2537 

4221 

4.188 

1227 

0211 

1182 

1370 

3334 

12BJ0 

100. 

£746 

1235 

£495 

1278 

0735 

75X6 

£638 

Sweden 

PKil 4420 

2282 

7290 

£136 

£890 

2067 

£400 

9286 

21£4 

174.1 

10 

1302 

£861 

1.788 

1279 

131X 

1.107 

St m tow land 

(ST2 24X2 

4267 

4248 

1.186 

0X94 

11*1 

1332 

5.153 

1212 

9621 

5350 

1 

0X78 

0081 

£710 

7230 

£614 

ISC 

CQ 5128 

9.743 

£464 

£478 

1233 

2388 

£788 

10.78 

254.7 

202.1 

1131 

£098 

1 

2253 

1X85 

1523 

1285 

Canada 

(Ct> 2438 

4,748 

4.123 

1208 

£503 

1183 

1357 

6251 

124.1 

88X4 

5.655 

1.019 

0X87 

1 

0.723 

7438 

0.628 

US 

m 34X0 

8281 

£700 

: 1269 

0298 

1608 

1276 

7289 

1713 

138.1 

7.818 

1X09 

0373 

1-382 

1 

102.7 

0.8B5 

Japan ■ ■ 

. (fl 3352 

.8329 

SKSO 

1628 

£774 

18830 

T827 

7008 

1670 

1325 

78.13 

13.72 

£557 

13X6 

£738 

1 000. 

8X26 

Ecu 

38.75 

7282 

£687 

1228 

0204 

1858 

£188 

6388 

19&2 

1573 

£035 

1.828 

£778 

1388 

1.158 

11£7 

1 


EMS EUROPEAN 

Mr 31 Ecu can. 


CURRENCY UNIT RATES 

Halt Change % +/-Jrom % spread ON. 

egrinatBeu on day can, rate ¥ wretoal Ind. 


5MhSDM.t25A00 par 0M(Apr 1) 


VW FUTUHES iimnO Van 1£5 per YenlOO 


Jun 

Sep 

Dec 


0X968 

0X920 


Sett price 

Cfaenge 

m 

LOW 

Eat voi 

Open tot 


Open 

SeUixica 

Orange 

tfigh 

Low 

Eat vol 

Open int 

03677 

-£0095 

£6968 

08882 

43201 

99388 








(Apr 1) 

£5882 

-£0092 

06824 

£5845 

77 

£580 

3xi 

£9778 

£9675 

-00148 

02792 

02684 

10X45 

52.402 

03880 

-00087 


£5870 

8 

1,115 

Sep 

£9880 

£9733 

-02143 

£2820 

02630 

184 

2,127 







Doc 

• 

0L97B7 

-0.0139 

- 

02800 

13 

439 


NadMftonda £19672 

Baighan 40X123 

Germany 1X4984 

Ireland 0X08628 

Franca 8X3883 

Spain 154X50 

Denmark 7X3879 

Portugal 192X54 

NON ERM MEMBERS 
Graaca 264X13 

(My 1793.19 

UK 0788748 

Ecn cgnwl naa» rebylha Evmoean Q»n uii iiilon. tXareocre «e In d eece m anq wtobw wnnalh- 
itaMto Cftwuw a» to Xsw g poaUw dwve dondH a aato cunrcx. rfregaoca *om B» 
1 WI 0 trewon two apraato; the panredag* dflMnoa betaam dia aoiud maiwt aid Ecu ewM Mao 
to a ewency. andttia wwlimwi permfaed preancagi mnwnn o< Ow awtol laakot me toe — 
Ego Tttra l run. 

(r7k&B4 Swang aid Man Un anpondatf Aon CRM. AfuMnif catatowt by 0 m Aionckc Ttnm. 
■ PMLADSLPtflA SB V% «>TKUI8 E31XS0 (cenh per pound) (Apr 1) 


£16957 

+£00157 

-124 

337 

. 

307803 

+£0444 

-137 

3.70 

8 

123114 

+£00298 

-025 

337 

- 

0204797 

+£001608 

-3X7 

338 

3 

639301 

+£00141 

033 

1.75 

-7 

157.078 

-0977 

13 3 

£74 

-13 

738381 

-000234 

138 

£80 

-14 

187348 

-2314 

£59 

£00 

-17 

284650 

+0914 

738 

-433 

_ 

188045 

-182 

£75 

-1.12 

- 

£777537 

•£00224 

-1.17 

3. BO 

- 


bemoiwuwMMk-a ret Mm 

MWM3W 

Oydesdale Bank Dadtala StfeBon Ace 
aoavMMRKbBaowEiaa. ,oti-Hanuo 
CIOjOOO-tSBSH f 170 lie STS I to 

□BbOOD-tsiaaB — . ire aai [ un u 
cioaxxn-nu 3 ae_I aao aesl uni or 

llw Co-operative Bank 

WJBmaB.SSEareQrelmca 03*5252000 

1ESS4 I 525 -I -llaaqr 

More -Cre Ire i pa' — > mm1 . 

430 338 I 5311 tta 

n-wonHMMSjreoi 

423 30* 532 444* 

430 338 I 453 ft-Mb 

400 330 ( <0* [*-•*» 

100 Z25l 33Z|044B 

fl» 231 [ 379)8-130 
125 Z4*| 12S 

225 1 89 I 126 


376 

TCS»FHd1Yta Ml 

rB34Mrtl6a___l<06 

Tyodal Back pic 

lui mrev&b stum ozn 

wet rwM+eare -nei is an* am 
on a nbiwtiono* area zois I aau 

NH3C50DQ0+ 3373 2S08 I IBS 

nunoooeo+ *000 3300 1 4to 

IjnM las* — 4173 - 1 4447 

I5£ Trust Limited 

1 UK ConbaUM H. UUdoa W1 U 7A. D7I-2SB6004 

£1030040 ear ngba.l ere ua I eeals-ire 

mau-uotortoee-l 768 5331 734 5-4401 

Q3JOOO-1 Vnr —1 725 3 44 1 -llWOl 

United DamUom Tree! Ltd 
n «*« reei o« oar 08r-44rsue 

cure ra« a re . tore* 

Cl 200+ 1 47S 350 I 43*1 to 

£ Hoary Htfuuder MtaagC Oo Lkf 

1S0DWJPWI4.|X««MH2VBS ,071-3820000 

8» 2771 IB 

225 I ami m 


Ssectoto. 

CKunopai 


r: 1“ 


300 



Wosteu Trad Mgb bdoreet Ctatpe Acc 

toMoraiB W W . Winren A.1 ISC , 07322*4141 

813090+ [479 118 434 1 OB 

a^oo-nunr J am i»| 4*#/ or 


eijgoo-cun- 


1 426 


4321 


E2503OK 

eKwo-emm 

CUUIOO-C49W9. 

HOHMB, 

JO-W ownera: 


4S> 138 | *55 1 5-4431 

106 270 I a 00 / 5-JIB 

279 238 1 277 544m 

a 25 163 1 229le-44BI 

weniem-sams 


ore* Mill- ire bM* «b * KM 9MM P 

MPOKcaucataw oreaon or awe ire wore ba. 

MM ere p bare reaw rer itoreg to orecaan P 

bre rre tcare mTChh C«b can ire aareaw b 

to axore a w reto * Ham too ore «n 

are » nor. I Wa V M «na1 IW M Or Fooaney 

M weai kpnM a emwed a na Occam*. 


PMQSFr 1X5X00 Pf »» 


J^in 

£7080 

07011 

-00080 

£7080 

03883 

Sep 

.-.00830 

£7019 

•£0080 

0.7045 

03890 

Dec 


£7035 

-£0080 

*■• 

07030 


m tnuHumi wmnaca. iimm) esaxpo pw e (Apr i) 


36 

13 


283 

48 


Jon 

asp 

Dae 


WORLD INTEREST RATES 


31 


Btffltom 
week ago 
Franc* 
waeic ago 


week ago 
«aly 

weak ago 

Nafhartsode 


week ago 
US 

week ago 


res 

Over 

"Wri 

One 

month 

Tima 

. mthri 

Sto 

irtha 

One 

year 

Lamb. 

Inter. 

/ DU 
rat* 

Rgpo 

rate 


6ft 

8ft 

84 

64 

7.40 

£00 

- 


8ft 

6& 

6ft 

8ft 

7X0 

£00 

— 

6ft 

BA 

84 

84 

8 

530 

— 

T.7S 

6ft 

6J 

6ft 

6ft 

sa 

030 

- 

7.75 

530 

530 

5.70 

520 

6X3 

£75 

535 

£78 

6.76 

630 

S.75 

523 

6X8 

£75 

536 

&9D 


6H 

6K 

0ft . 

6ft 

— 

“ 

675 


6ft 

8ft 

6ft 

aft 

— 

— 

675 


8ft 

8ft 

8ft 

8ft 

. - 

830 

8X0 

8ft 

8ft 

84 

- « 

8ft 

- 

800 

632 


5X8 

523 

531 

531 

- 

£25 

" 


8X8 

329 

534 

634 

— 

53S 

• — 


4J) 

4* 

4ft 

44 

8325 

430 

" 

4ft 

4* 

4ft 

44 

4 


430 

" 

3ft 

3ft 

3ft 

4* 

43 

“ 


— 

9ft 

3ft 

33 

4ft 

4ft 

- 


“ 


2ft 

2ft 

2ft 

2ft 

— . 

1.75 

— 

2ft 

2ft 

2ft 

2ft 

24 


1.75 



1X796 1X702 -00124 1X832 1X870 18X82 28X80 

1X728 1-4968 -00118 1X730 1.4660 19 702 

1X800 1.4648 -0X112 1X850 1X800 1 38 


t MOUTH HUl»OIH*BK«mj9B»M^PM1mpitotmcMtP» 


CALLS - 
Mey 

Jin 

Apr 

— PUTS — 
May 

Jun 

7.12 

7.19 

. 

£08 

032 

*88 

£14 

« 

033 

£78 

237 

330 

£19 

£90 

1.48 

138 

2.09 

1.01 

135 

237 

0.72 

1.18 

£79 

323 

4.13 

nM 

020 

£13 

£68 

£03 



Open 

Sett price 

Change 

High 

Low 

Jun 

9433 

S43S 

003 

9438 

9433 

Sap 

94.78 

0431 

004 

9433 

94.76 

Dec 

9431 

95.00 

£09 

95.00 

94.91 

Mar 

93.04 

85JJ8 

£07 

95.13 



EsL vol Open M. 
244S9 247866 

18605 162513 

18494 182470 

10285 182075 

' MOUTH MWOUm arTJMTg FUTOMBI P3E7S) ElOOQrn pdno rf 100% 



Open 

Sett price 

Change 

Hgh 

Law 

Eat vol 

Open tot 

Jun 

9137 

9133 

£09 

9139 

9137 

5824 

58293 

Sep 

9236 

92.17 

£13 

9233 


3441 

23848 

Dec 

9236 

anoa 

aiB 

9234 

9224 

1991 

36801 

Mar 

8222 

ffl<P 

£19 

9232 

OS 99 

989 

8002 


IMOimiUlWgWBMraAMCtWUintetLffFqsmmpoinartimK 


■ s UGKM FT London 

tatartjtf*THnf) " Jf 

weak ago " ** 

USOtfHrCOa - 3X8 

weak ego 
SDH Linked Da 

toeem tf Tobya 


- £38 

39* 

3» 


33 

3% 

£65 

3X7 

5ft 


4ft 

« 

4X0 

3X7 

3ft 

8ft 


4X9 
4X0 
■ 4 
4 


USS CO* and 80ft Untod DftHrte pft 


■SI 


Short 

torn 


fc- 

► 


Tl" Itoto aw Bartow W . 

Jtd MSB PB more to me dacrrei 

Euno currency m««' * 

nice month wo«ate motdhe_ 
$4 -6k 8A>6A 

«H-9k **-* 

bH-bji 

5%-S& 5S-ft 
6V - 6** 1 6^t -fl*! 

10 V-«Sf 

fli - 7]J Ai*7H 


Belgian Aw 
Danbh Krwft 
P4tak 
Dtfcft GuAtto 
Ranch ft»e 

PolBfloeMEK^ 


ft -*k 

3h - i\ • JS 

s8-sa A-ft 

S%-5% 

0,-8 h 

tOL -10 

8A-8& 8*4 -A 



One 

yw 



Open 

Sett price 

Chraige 

High 

Low 

Eat iral 

Open tot 


9632 

9833 

£01 

9637 

9631 

2230 

34086 

Sap 

96.12 

96-12 

031 

96.13 

90.10 

284 

7487 

Dec 

9637 

9638 

£01 

9638 

9639 

143 

4212 

Mar 

9835 

9534 

£04 

9535 

9531 

80 

312 

■ TOR 

"I ■ ■ 



Open 

Sett price 

Change 

W 

Low 

Eat vet 

Open tot 


9431 

9430 

£05 

9432 

9338 

514 

10758 

Sep 

94.19 

9431 

(W» 

9431 

94.18 

307 

11565 

Dee 

9438 

9433 

£06 

9435 

9438 

*1 

8627 

Mar 

9433 

9434 

034 

9438 

9432 

301 

1845 

* Iffi tarn tatted on W 







m Mum IUIIODOIJUA (PUH4 *1rn ptfnls of 100ft (Apr 1) 



Open 

Sett price 

Change 

Ugh 

Low 

EsL vd 

OpeftM. 


9533 

9138 

-£Z7 

9525 

95.46 

98339 

492,408 

Sep 

fi£16 

95X7 

<L16 

96.18 

9433 

104368 

352319 

Doc 

8437 

9432 

-£24 

94.70 

94X0 

69384 

288304 





96.10 

9638 

■£13 

98.10 

9534 

S31G 

38,732 


9CL71 

8531 

£19 

9£71 

9GL61 


9331 

Dec 

9531 

9538 

£22 

05.31 

9£11 

712 

3380 


M OpM MPMt 604 m to pmfeni day 
■ HHO— AWC tePHOHS (LBTQ DMIm poWa ot 100ft 











BTra 



BiriV 








KS3 


Jon 
0.14 
005 
002 

P. ere 2467 Pus m ftptoa da/» open ■*, Cre 219138 MB 190739 
MMSS FHAI9C OPTIOtfS £BTE) SFr Ini pOelte 07 100% 


pH 

E 33 







K; Ti'd 


re-' - »w> 




tfS' 1|, W 

^EjZN 

rt ui Ml 





»‘xTTr^B 





rrSi 







mXlff.'lT.-a*-- ' ii. t ‘.eii, i' i-’v.-i i.W.- " l- f 1 . . IBM 


Dec 

021 

0X4 

0X1 


j* . 5* £5 S£‘ »» “i 19 

S - ^ 9£4S 94>W 

J£ 9W8 *AA0 


Strike 

Price Apr 

1X00 7.18 

1X25 4.72 

1X50 £48 

1X75 aai 

ixDO au 

1X25 

PiariM d«ye mu cre ex*9 l>re 8.741 . Rnre dto* <PM tot. cre 481084 Puta 417J088 


UK INTEREST RATES 


LONDON MONEY RATES 

Mar 81 Over- 7 day* One Three 

night nodes month moruhe 


Six 


One 

year 


43,-2 43fc-4le 5»»-S 5& - Sh B}J - 5j| 

6l|-Si M»-5A 5H - 5A 8*1 - 5b 


43 -4% 43 . 43 , 

1 - 4J1 5l».6A 


Mterteik Stefing 
Starting CDs 

Treasury BBS _ _ 

Bp* Bto - - 4JI - 4-4 5i _ 

Loaf WJJhorfty deps. 4& - 4^ 4ft - 4,4 6A-Si, Si-Si 5A-6A 

Haaxrt Market Deps 4>z - 3>2 4A - 4ft 

UK dealing bank Dew lendho rate St* par cent bum February £ 1994 

Up to 1 1-3 3-8 8-9 9-12 

imnOi month months months 




3*2 


Cette of Tax dep. (EIDOAOQ 1*2 4 3t» 

Oats of Ire dsa ixida- tKftOOO la I'eso. Dapoda wMxbren to cadi l«pa. 
toe. toxto are at ctootrt 4J9280pa BOGO toad MM 88» Bpcm fhreea. Mtta up d* Uweft 31 \ 
190*. bored ree to patod tor 38. HMnHak 1988. 8djreia9«. II 647pg. Wtoreca rata to 
period bto 1. 1084 n Mar 91, laao, Beheraet W4 w 32Mpc. HrexH Moure Bare Row 6>*pc bom 
Marl, 1984 


MOimt STSRLMQ FUTURM {UFFE) ES00.0Q0 potnta ot 100% 


Open 

Sett price 

Change 

Hgh 

Low 

Eat vd 

Open tot 

9431 

9433 

£01 

9439 

94X7 

25042 


9439 

9439 

£01 

94*39 

9434 

16919 

80077 

8338 

9433 

£07 

94.10 

9336 

15941 

108630 

83X9 

8332 

£15 

93.75 

88X8 

8428 

44173 


Jun 

Sep 
Deo 
Mar 

Traded on APT. M Open Mend (a*, an 1 to pretore ire 

■ 9HQgTSTWUwaOPTWH>jJra260M00pgWccf100ft 


SUB 
Price 

9450 
9*75 
8500 

ESL ML tout, cre 8043 Pin 10839. P ieetau* ratfs open Iru Cals 150141 Pin 1BBZ71 


Jun 

- CALLS - 
Sep 

Dec 

Jut 

— PUTS - 

Sap 

Dec 

£18 

£24 

£21 

£15 

0X9 

£68 

0.07 

£15 

£14 

non 

£85 

£86 

£03 

£09 

007 

nrw 

£84 

134 


BASE LENDING RATES 

’ % * ft 

Mam&Cnmpany — s^s DuncanLanria 525 *FtortaxtftaQucRntn 

AM that Bar* 526 EndtoBMLMted— 8XS CBpardcnUTilBdtirc 

ABStfft 525 HnandetS Gen Bank- 8 bQvautioriasdea 

■HenyArabadUr 5X5 •fttoartFfertng4Co_5£5 aberttiglnaflUfan S 

SanktfBtoata 525 Gtabank 525 R^BfctfSco8mf_5£l 

Banco BfcooVtmaya- 525 MJubmeae Mahon 525 «Stitfl&Wftnn Sacs. 625 

aartctfpypns- 529 HabbBanbAQ21jrich.G£5 Stantod ChettoM — 8£s 

Bafttffnfend.. 525 MtanfeneBratk 525 T8B - 526 

Barktf bda 825 KoWlie&Gen»wBk.&2S «JnMfetfMJW«. 528 

Banktf Second 525 OHOSeraud. — 525 Un^ Trust Bar* Pfa _ S25 

BardewaBer* 52S C. Haora & Co 526 Wasftm'nuBt S2S 

BrftBktfUd East..- 625 Hanyang AShangheL 525 y wawn^ l »V*to ■ 523 

•Bnwn Shiptoy 52S JAmHotfeeBai* S26 Vcrtatoe Baric S25 

CLBoritNederiand— 523 ■LacpoU^netfiA Sere 525 

OBbaritNA — 825 UoydsBank 625 •Members ot Brttlah 

C^rteedale Baric 825 MagtwjBrtUd 326 Merchant Batting & 

IhoCMpontfw Bank. 525 MJa n d O a* —525 SftCUiitlQB Houses 

Count & Co 525 * Mourn Bartdng 6 Aeaotiafeft 

Cradt4mnato>-~...-328- NMWotMnstar £26 * habnUsfcaiM 

Cyprus Popder Bank -525 •RwBrdhers 525 



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grfrj a Nrfl AT . TIMES WEEKEND APRIL 2 /APRO. 3 j 994 


LONDON STOCK EXCHANGE: Dealings 


Details of business dona shown Wow ham been taken with consent 
from fast Thursday’s stock Exchtnga Official List and show W not be 
reproduce d without permission. 

Details relate to those aecurtttes not Included m the FT Share Information 
Services. 

Unless otherwise indicated prices are fri pence. The prices as those at 
which the business was done In the 24 hows up » 5 pm on Wednesday and 
settled through the Stock Exchange TaSaman system, they ara not In older of 
execution but m ascancflng order which denotes the day’s highest aid lowest 


Austin RMd Group PLG 8% Cun Pit Cl - S3 


i RnfCJRxS* Parp 
Brtous}- £85* 

PLC 6%H Beta 


Royal Borne of ScoUand PLC B%* Undated 
Subord BOS (ft C van - £B7% 


2013 (Br£ Va) 


ctnknd PLC 10. 
EVa)-C11t.: ! ; 1 
HHgaPLC9%1 


Bartnps HX 0%% Parp Subaid Nta [BrSVari- 
OU3) - £88% 4 7* .323 
Bkn Chto taOurarir* Captea Ld IQ'jH Cm 
Cop Bda 2/MS/Br£5000A100000) - £124* 
(28MrtW) 

Bradford & Bte^oy BuSUng SaddyCDSared 
FUgRtaNte 2W3(Rag MufflEIOOO) - £1024 
Bradford & Hntfoy Buadfrg SodetyCafisred 
FSg Rte N» 2003 (Br £ Vo) - £103% 
e»*94) 

Bristol & West SuMng SoeMy 1DV% 

Subord Bda 2018 Or £ Vori - £106 
Srftta/i Gas Wf RnancB BV fi% % Gtd Bda 
2003prSVan) - 8B3% 93% (29M94) 

British G» M Finance BV 9%5t Gad Bda 
2001 (Br SC Van - SCI 045, 

Brtttah Gas PLC 12*% Bds 1905 

&cioao&iooon • nos* czsMieq 

Brash Gas PLC 7%% Nta 1BB7 (Br £ Van - 
£99^2 

Britan Gas PLC 10%% Bda 2001 (Br 
El 000,1 00008100000) - £112/, 

BriUah Ges PLC B*%Bd» 2003 (BrE Vra)- 
£08% 

British Tatar. unsi snricraiom PLC Zara Cpn 
Bds 2000(Brf:i0008i10000) - £02% 3% 
(20)1104) 

British Tetacansnunicattana PLC 7%% Bda 

2003 (a £ van- £03* 

Brtttah Ttfecomnurtcallans PLC 12*% Bds 
2008 - £129U (2SMr94) 

Btsmsh CbM CopftnXJutwy) Ld 9*1% Cnv 
Cop Bds 2006 (Rag £1000) -£140% * 

50% 1% 

CRH Caortal Lxl 5*% Cnv Cap Bds 
2005(BrS5000) - *119 (261*04) 

Cabto A VWrotona PLC 8%% Bds 2003 (BrS 
Var) - *83.00 83^4 PSUrtW) 

Oommanttta Union PLC 1Q*% Old Bda 2002 
C3r £ Vto) ■ £11 1 (28HM4) 

Cookson Finance NV 5%% GU Rod Cnv Prf 

2004 (BrSha 18 St - El 33* 

(My Mai A Ganarri Than PUS 0*K Each 
Bda 2005 (BrCIOOOASOOO) - £170% 
(29M94 

Dawacn Finance NV 9%% GtdHodCnvftf 
2004/CertaToBr £1 16) - £00 (2MM4) 

CVyiij Ftaanoa N.V. 7*K Old Bda 2003 (ft £ 
Vta) - EB1* P9MI04) 

Dow Chemical Co Zara Cpn Nta 3W5/ 
07(Bf£1 000810000) - £70*4> 

EL Du Rail de Namnn A Co 7%% Nu 
1999(Br SVar) - 8102% 102% (28M04) 

Bf Enterprise Finance PLC B%% GW Each 
Bda 2000 (Beg £5000) - £105 % * 8H 
P9Mt84) 

FWendfftapuMc cri) 10%% Bda 
iSBTQhtioooBiaoon - noo 
FHard/RapuMc at) 10%M Bda 1038 - 
£108% (29MS4) 

Ftahar(Mban} Finance N.V. 5%% 
GtdRadCnvPrf 2004 (Bi£1000) - £127* 

Guaraiteed Export Finance Corp PLC 7*% 
Gtd Nta 1008 (Br £ VW) - CBS (2SMi94) 
Guaranteed Export Finance Corp PLC Gtd 
Zara Cpn Bda 2000(Br£iODOQA100000t - 
ES&45 (29Mifl4) 

GtrimeaQ PLC 10%M NO 1997 (Br £1000 A 
10000) - Cl 07 .4 

Htfiw BuMng Society 7* % Nta 1098 (Br £ 

vnrj - esay 

Hriltax BuMng Society CoOraed Fltg Rio Nta 
2003 (Br £ Vta) - n02 P8MS4) 
Kammaraan Properly krrv 5 Dw Corp 10*% 
Bda 2013 (ft£l 00008100000) - £106% 0% 
Hanson PLC 0%% Cnv Subord 2006 (Br 
Evari-C118%9PSM94) 

Htekaon Capftta Id 7% Cnv Cap Bda 2004 
(Rstfl ■ 131% (288*04) 

Mckoon Capital Ld 7% Cm Cop Baa 2004 
(BrCI 000*1 0000) - £130 (29Mr04) 
Hydro-Quebec 9%% Mm Srs GY 8/8/ 
95(Br£1 000810000) - £l03fi (251*94) 
tapaU Chentasrt induaWes PLC 11*% Bds 
190S(Bi£SOaO| - £105% (251*94) 
fo ta nM ton al Bank tor Rec A Dev 9*% Bds 
2007(8^5000) - £107% % £91*94) 
Int nwaB onta Bonk lor Rac A Dev 10% Bda 
1B00(Br£iOOO&1OOOQ - £107% 

International Bor* for Roc & Dev 10%% Nta 
1009 (BrfXOOO) - £108% 

BalytRaputA: ofl 3%% Nta 2001 - Y94J 
ftaftftopubttc off 10%% Bds 2014 
(Br£10000S500(X9 - C1T3J25 (291*04) 
Japan Davatapmant Bank 7% Gtd Bda 2000 
(Br C War) - £85% 

Kamel Bectrtc Power Co Inc 7%% Nta 1908 
(Br E Var) - tS7 

Kyuanu HecWc Power Co Inc 8% Na 1997 
(BrEWri- £101% (261*94) 

Ladbroke Group PLC 5%H Subord Cm Bds 
21»4(Br£IOOO&SOOa) - £134* (2BMr9 4) 
Laobrohe Grotp FVianoa(Jer a ey)Ld 0% Cnv 
Cap Bds 2005 (B»£6000A1 00000) - £97* B 
Land Securitise PLC 9%% Bda 
2007(ft£1 00081 0000) - £103% 

Land Securities PLC 5*% Cm Bds 
20Q2(Br£100G| - £98 

Land Securitas PLC 9%% Cm Bds 2004 
{Br£SOOOASOOOO} - £115* % (291*04) 
Leeds Patmanam BiMtep 3odoiy 7%% Nta 
1908 (Br £ Vaj) - £98 

Loads Permanent BdkSng Society 11%% Nta 
1096 (Br ESOOOA 100000) - D0B% (291*94) 
Leeds Pomuaiani BuSotng Society CoOared 
Rtg Rta Nta 2003 (Br £ Var) - £102% 

Lewis (John) PLC 10%% Bds 1B9B (Br 
tlOQOO&lOOOOO) - £108.175 (28M94) 
Uoyds Bata PLC 7%% Stixrt Bds 
2004{Bt£Viiitaus) - £S0B 1 % 

Uoyds Bank PLC 10*% Subotd Bds 
1B90(EP£1OOOC9 - £108% (29*04) 

London & Manchester Group PLC B%% Nta 
2Q04OrCVwa) - EBIfi (2SM04) 

Loraho Finance PLC 8% Gtd Cm Bds 
2004<&£Va73) - £100 (29*94) 

Luces Industries PLC 10%% Bds 2020 
(UitlOOOO&l 00000) - £111* * 

Mcmtam (John) A Co PLC 11 %H GW Bds 
2013 (BriMOOOO) - £106% 7 
NettarW Grid Co PLC 7%% Bds 1098 (JSr £ 
Var) - £98% 

Natural Power PLC 10%% Bds 2001 CBr 

naxn&Kxnxg - em* paMr«) 

Nritond Westnttnriar Bonk PLC 11*% 
Subord Nta 2001 (BrEVarl - £115 
Nnttond Weatevn a te r Bonk PLC 11%% Und- 
SubNta CiOOOpiv to Prf)Reg - £108^ 


FT-SE ACTUARIES INDICES 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 Inrfcss and the 
FT-SE Actuaries Industry Baskets are calculated by The International 
Stock Exchange of the Untied Kingdom and RepubUc of Ireland Limited. 
6 The International Stock Exchange of the United Kingdom and Republic 
of Ireland Limited 1994. AH righto reserved. 

The FT-SE Actuaries Afl-Shana Index to calculated by The Financial 
Times Limited in conjunction with the Institute of Actuaries and the 
Faculty of Actuaries. O The Financial Tunes Limited 1994. AH rights 
reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuates 350 indices, the 
FT-SE Actuaries indus&y Baskets and the FT-SE Actuaries AB-Share 
Index ere membore of the FT-SE Actuaries Share Indices series which 
are calculated in accordance with a standard set of gromd rules 
established by The Financial Times Limited aid London Stock Exchange 
in conjunction with the Institute of Actuaries and the Faculty of Actuaries. 

'FT-SE* aid Tootsie" are joint trade marks and service marks of the 
London Stock Exchange and The Financial limes United. 


Royal Bank o» Soodond PLC 105% Sittxrt 
Bda 2013 (BrEV*)- £110% 1 % (281*94) 
FtayW htturanca HMbs PLC 0%% Subart 
Beta 2W3 (Br £ Var) - £101* (281*94) 
Sakebuy UJtChumol bland* Ld 
8%%CnvCapBda 2005(Br £50008100000) - 
£127 8* (28MiS4) 

Sown Trent PLC 11%% Bda 1999 (Br 
£60008100000) - £113* P8M04) 

Sewn Tram PLC 11%% Bda 2001 (Br 

£sooo8ioooaq - £iie% bbmm) 

Sincere Nsvlaallon Corporation 3.76M Beta 
2003 (Br SI 00008100000) - SI 01 101* 

102 

Swedenpflngdcini of) 8*W Beta 1006 
(BriSSQOO) - £104% CSM94) 
SwaoanQCngdom ofr 11*% Bda 19BS(Br 
£5000) - ft 04* 

TBB Group PLC 12% Subord Bds 2011 (Br 
£100008100000) - £121% % 

Tarmac Ftnanea Lleraay) Ld 9%% Cnv Cop 

Bda 2008 (Rag £1000) - £108% 9* 
TatoSLyie HHn PLCTTeteALita PLC 5*% 
TALttFnGdBds 200 ipd WAVtaTALPLC - 
£88% (28M94) 

Tosco CapB* Id 8% Onv Cap BdS 20C5(Rog 
Cl) - £120 % * % * 1 % 

Thanes Water PLC 0%% CmBUbondBds 
2oaaBi£50ooA5aiooo) - roe* % * 
(29»*94) 

Thames Water IMthn Rnance PLC 10%% 
GW Bds 2001 -£111 (281*04) 

31 Motn aUteH i BV 7*% GW Bds 2003 (Br £ 
Vie) - £93* % 

Toyota Malar C o r po r a tion 5.625% Bds 1098 
(Br 9 Vta) - 387.59 (28k*94) 

Trafaioer House PLC 10%K Bds 
2006ffif£1000ai0000) • £104% 

U-Mlng Merine Transport Corporatton1%% 
Beta 2001 (Ron in Mull $1000) - $83% 88 
UnBever PLC 7%% NB 1098 (ft £ Vta) - 
E8 S*PBMi94) 

IMted Kingdom 7%% Bda 
19S7(ftOM1 00081 0000) - DM103SS 
104C2 (28U04) 

Vtaranen PWc Mtn Rn Agency 9%% GW 
Bds 1B90(Br£Vaa( - £108% % B6Mt04) 
WMsh Water Uttttttea Ftaence PLC 7%% GW 
Bds 2014(Br£Var)(P/P) - £13,', £25Mr94) 
WoohA* BuWng Sockrty 11*% Subord 
NU 2001 - £1 13*$ 

WoaMch BvBdng Eoctety 10%% Subord 
Nta 2017 (ft £ Var) - £105* (281*94) 
Abbey National Treasury Serve PLC DMTSm 
7.5% Nta 171 0/07 - D8M04 09*04} 
Eurofnot&v. V3000m 
Var^MLRteJmLAmount NU30&9S - VB2 
(28MT04) 

Hanfa* BUkflng Soatety DM50m 088% Nta 
22/2197 - DM101 % (251*94) 

HaStax BtMng SoeMy DMlOOm &25% Nta 
18F4/07 - 0*4100% (251*94) 

HaOtex BuSdrg Society E5m Rtg Rte Nta 
Modi 1999 - £09.6 (20*04) 

S8AB DMlOOm 7JM Nta W12/07 - DM 104% 
(258094) 

Svmden(Knodom of) EBOOm 7%% NU 3712/ 
07 -£00% 

Swadwi(Mngdani of) E250m 7% Instnenenta 
23/12/08 - GB7* C28M04) 
~lw»»li»i(Kliyiliiiii nfl OrWin T nlli Bds 28/7/ 
2000 - cae* .73 (281*94) 

Corporation Stocks - Foreign 

SartOSICrty ot) 7% Cons SDg Ln of 1927(8 
now 2%%) - £00 (251*94) 

Sterfing Issues by Overseas 
Borrowers 

AuaMia(Canwnamn*t»ofr 105% LnSlk 
2010 -£130* (291*94) 

European teveobnenl Bar* B» Ln 9Hc 2001 
PeO) - £103* 4* 

Euoperai tawstment Bar* 0% Ln Stk 2D01 
(BrtSOoq - E10S (261*04) 

European Investment Bank 0%% In Stk 
2000 -EllO'Jt 

European Investment Bank 10%% Ln Stk 
2004(Hed - £114i' ( (25Mr94) 

Bonpwn fcivestnient Bar* 11% Ln Stk 
20020%® - E11BU (2SMr94) 
IcetandfRepubBc ol) 14%% Ln Sfi( 2018 - 
£140% C8Mr94) 

Ireland 12%% Ln Sft 200e(Rest - £132* 

New Zdstand n*% Stk 2008(ft C500Q - 
£124% 5»j (281*04) 

Listed Companles(exduding 
Investment Trusts) 

ash Capita FkianoetJereeyJLd 9%% Cm 
Cap Beta 2008 (Reg Untts 100M-E8S 
Aberdeen Trust PLC WB to b* lor Ord - 54 
pSkMfl 

Aberdmn Tiust nc A Wts to Sub lor On] - 
54 (251*84) 

Abtnta Attas Find Sna ol NPVfUK Grawtti of 
InoomepqrifoUo) - 18a7«fr 
Aetna hMayrion Growth FmdfCayinankd 
OrdSaOl -$11*4> 

ABtert Fisher Group PLC ADR (1(7-11 - S&28 
(281*94) 

Alexander 8 Atatandsr Services Inc Shs a) 
Ctora C Com Stk SI - £11% (251*94) 
Aknandero HkJga PLC - A"(Ftet.V)Oro lOp - 
22 (25MI04) 

Atexon Group PLC 626p (Net) Cm Cum Red 
Pr» lOp -00 1 

ASted London Properties PLC 10% Cum Prf 
£1-713(291*04) 

ADed-Lyons PLC ADR (Irl) - San 
AHerHjyona PLC Sl 2 % Cun Prf £1 - 60 
ABad-Lyons PLC 7%% Cun Prf £1 - 82 
ABod-Lyona WXJ 11 *% Deb Sdc 2008 - 
£128% (281*04) 

ABed-Lyqna PLC 7*% Una Ln Stk 03/08 - 
£99(291*94) 

ABed-Lyons Rnaneisl Servtces PL06*% 
GtdCmSubonSdsaoOB RegMuMEIOOO - 
£109% 

Aflnan London Properties PLC 0*% 1st Mtg 
Deb Stk 96/2001 - Cl 00 (254*04) 

AMs PLC 5£% Cm Cun Non-Vis Red Prf 
Cl -64* 

American Brands Inc Shs of Com Stk 53,123 
- 830* 

Amwitsch Cup Shs <ri Cam 9k 51 - £40* 
Andrews Sykes Group PLC Cnv Prf SOP - 80 
£8Mr04) 

AngSan Warier PLC 5%% Index-Unkad LnSttc 
2008(6.1024% )- £1 38 

Ln Stk 95/99 - £102 (281*94) 

At^tera^Ld N Ord RtLOOOf - £16% 

Asaodaisd Brtttah Foods PLC G%% Ure Ln 

Assocfeted Brtttah Foods PLC 7%K Urn Ln 
S* 87/20K 50p- 4Q 
AHwoods PLC ADR (5:1) - S0* (20MA4) 
Altwoods (Finance) NV (Pap GW Rad Cm Prf 


For those securities in which no business was recorded m Wednesday's 
Official List tha latest recorded business tn the throe previous days te given 
with the relevant data. 

Rule 535(2) stocks are not regulated by the International Stock Exchange 
of tha United Kingdom and the Republic of Ireland Ltd 

% Bargains at special prices. $ Bargains done the previous day. 

Nsfknri WtostmMBT Bank PLC 11%K Und- 

Bntteh Funds, etc suw*j noootom to ptijer - sioa* % 

Treosuvi^Sta^-ei^ N 1^£^|??fe CpnNte 

&**v*w» 9KS0OS -£110% Mppcn Tetagraph myC wWCoro10%% 

— — — Bds ZOOUBr £1000810000) -E113* 

Corporation and County 

c+nnim Nanram Rock EhacInQ SoeMy iOt71 

St Odes Slrixtro Bds 2015 (BrEVta) • £107* 8% 

FM Onp 3%% awi« kta) ■ B3B ^ - J. 

MertanOLandanBoieu9hafr11*HRedSK ,55?* JSJ Zi* 809 

2017VE122%4 2002 (Br C to) - £102* E»W4) 

Newcastl»-Upon-Tyne(Cay oQ 11*% Red OgL? 0 ^ 2003 ^ E 

UK Public Boards „S2E‘ SSSASSSi 

Oytteportlxl 4% Imt Sdc - B44 PBMI94) „ £!^-. . 

nxtot London Authority 3% Port of London cw, 4 ^ 

A Stk 2089 • £80 (26M/94) Bd8 13/UM(ftSlOO(fl » £73%* 

K ^ RMC Caped Ld a** Cm CtaJ Bda 2006 (Br 

Foreign Stocks, Bonds, etc- m^tovwaiTc 7 ^%^ Bcta* 1 ^ 41 

(coupons payable in London) 

AMPJUJC) PLC 13% Bds 2015 (Br Subord GW Nta (Br £ Var) - £88 * * 

Esxaniooaoo) - £137% P»*94) (28Mt84) 

Abbey Nattata Storting Capita PLC10*% Rothschlds ConWwatton FkKCJ)Ld9» Pwp 
Subord Gtd Bds 2002 (BrE Var) -£109% Sutxrt GU Nta (ftEVartow) - £85* 
(281*04) Royal Btaft of Scotland PLC 6%M Bda 

Abbey Natlooal Treeeuy Sane PIC 8% GW 2004 <ft£v*i) - £87% (201*94) 

Bda 2003 (ft £ Var) - EBeft % Royal Bm ol Scottsnd PLC 912% Undated 

Acer Incorporated 4% Bda 20(71 (B&1000Q - SuboW Bda (ft C VW) - E97% 

S160 181 183 Rojo/ Bank of Soottond PLC 105% 5 i*<r) 

Aada Fk«n» Ld 10*K Cnv Cw> Bds 2013 (Br £ V*) ■ £110% 1 * (281*94) 

Bds2005(Br £50008100000) -£113 Roy* Insurance HMgs PLC 9%M SWxsd 

ASOAftwjpPLC10%%Bd9 Bda 2003 (ft E Var) -C101* (281*94) 

2010(ft£l0000810000q- £114(251*04 SaJnsbury (JJtChannel talanttajLd 

BP America Inc 9 %% GW Nta 8%%CnvCopBda 2009(Br £50008100000) - 

1994(Brt1000S10000) - E105U PB8V04) £127*14 (281*94) 

BP Capita BV Zero Cpn Mb Sewan Trent PLC 11 %% Bda 1999 (ft 

1995(BrS1000410000) - SB42 PflMr94) £50008100000) - £113* (288*94) 

Ban^mk Land (Cayman Wands) Ld 4% % Severn Trent PLC T1%% Bds 2001 (ft 

Gtd Each Bds 2003 flfleg Id SI 000) - £500081 OOOOq - £116% (2SM04) 

593% Sincere Msvtoatton Cuptaatton 3.70% Bda 

Bodwa Bank PLC 7S75U Undated Subord jnn Mr SICOOO&IOOOOO) - 5101 101* 

Nta (BrE Vta)- £82 (251*94) 102 

Sorcteys Berk PLC &B7S% Undated Subord Svredenpflnodwii of) 8*» Bds 1006 
Nta - £101* (28MiS4) (ftESOnoToodla CSM0A 


Automated SecurttyCUdgi) PlC 5% Cm Cun 
Had Prf £1 -70 1 082 
Automated SacutMWM PUC 8% Cm Cun 
FtedftfEi -rei 

Auunottve PredudD PLC i5% Cun Prf £1 - 

50 0*94) 

Automotive PrwWaa PLC 0% Cum Prf £1 - 
105(251*94] 

M«tri Pioduca PLC Ord 2Sp - 78 
BAT MuStrtH PLC AM (El) - $1&42$ 
B8A Group PLC 10% Deb Stk 80/94 - E9B% 

(208*94) 

SET PIC AEH (4.-1) -57% 

B1CC RC 4JS6ffWy 8%) let Cum FW Stk 
£1-00(258804) 

BCC PLC SMftfntay 5%%) 2nd Cum Prf 
9k £1-90 

BM Group PLC 4£p (Net) Cm Cun Red Prf 

20p - 43% (25MI04) 

BOC Group PLC 12*% Una Ln 8* 2012/17 
-£130% (291*94) 

BTP PIC 7.5p(NfaO Cm/ Cun Red PrflOp - 
2003(298*94 

BTR PLC ADR (4r1) - 52247 (29t*94) 

BaJtayfCH) PLC 'B* Ondiop - 28 (288*94) 
Bangkok ft ira a Bi wua Uf Pft Fled W 50471 - 
5109 (288*94) 

Bank of MatW(Qovemor & Co Ol) Unita NCP 
Slk Bra A £1 & £9 L%ukttaiai - £13* 


Bank al MandfSovamor 8 Co Ol) LHta NCP 
Stk SraA b£t8k£9 Uquktatlon - Kl 1.7 
(291*84) 

Bomer Homes Group PLC Ord lOp- 158 81 

3 

Btadaya PLC ADR (1:1) - S3&0989 
Banteya ftmk PLC 12% Una Cap Ln Ste 
2010 - £124 COM 4) 

Bardoys Bor* PLC 16% Uha Gap Ln Sft 
2002/07 -£140% 1 % 

Banian Group PLC T2Sp {NaQ Cm Rad Pit 
26b' 100% 

Berdon Group PLC 11JB5p Cum Rod Prf 
200S IQp- 111% % 

Barings PLC 8% Cum and Prf £1 - 104U B* 
Btataga PLC 0%% Non-Cun (81 £1 - 124% 

% 

Bamalo Enplarnttan Ld Old RQjOI - 10 
(288*94 

Bur & Waltace AmeW Thrai PLC Ok) 25p - 
820 

Ban PLC ADR (2:1) - *18 
Bon PLC IC%% Dab 51k S01B -£117% % 
pat*94) 

Bess PLC 7%K Una Ln Stk 02/07 - £97 
(291*04) 

Bottsye PLC 10% Cun Prf £1 - 118 091*94 
Bergaaon O-y AS *B* Non Vtg Shs NK2JI - 
NK152.G4 3 4.19 2S .49 .69 
BV mtnghBm MWShtm Bldrftig Boc 0%K 
Farm M Bearing Shs £1000 - £89 * % 
00* 

Btsekwood Hodge PLC 9% Cun Red Prt £1 

- 38* 

Btockfaunter B i tart a tn m am Corp Bha Com 
Stk 90.10 - 

BkM Clnde industries PLC ADR (t:1J - $5.07 
(298*04) 

Btwt(Henry) & Sons PLC Cum Prl pJ26%) £1 

- 77 

Boots CO PLC ADH (2:1) ■ S1&2 (361*04) 
Bowthorpe PUS /% Una Ln Stk 9Q/9S - £S5 
Bradtorri 8 Btaetey Btetano Bodety1i%% 
Perm tot Bearing Shs £10000 - £113* 
Bradford 8 Btngley Buldteg Sodety13% 

Perm tot Baartng Sha £10000 - £126* 7 
Brent mumatlond PLC 9W Cum Ftad ftf £1 

- 06% 7 (291*04) 

Brent Htatkar Group PLC WB to Sub tor Old 
-1 

Brant Water Group PLC &S% 3rd Non-Qim 
Cm Red 2007/10 El - 2% 3 
Brtdon PLC 6%% lire Ln Stk 2002/07 - £79 
Brtdon PLC 7*N Una Ln Stk 2002/07 - £69 
Bristol Wnta Ftfdgs PLC Ord £1 - £1095 
1005 

Bristol Water KMgs PLC 6.75% Cun Cm 
Rad Prf 1998 Shs £1 -211 (28Mr94) 

Bristol 8 Wert Bidding Society 13%% Perm 
tot Baartng Sta £1000 - £121* %% 2* 

% 

Britataa BuStSng Society 13% Penn H 
Bearteg Ste £1000 - £120*1 * V 
Brush Always PLC AQR flOrl) - S61 * 
BrtdsteAmerican Tobacco Co Ld 5% Cum Prf 
Stk £1 - 68 7 (29Mt04) 

British Mohair HWgs PLC 6% Rad Cum 

FWnaaqei - 105 

Brtttah Potrolaun Oo PLC 8% Cun lat Pti £1 
-923 

Brtttah Petroleum Co PLC 0% Cun 2nd M 
£1 - 100$ 

Brtttah Steel PLC ADR flOfl) - 520032 *% A 

Brtttah Suwr PLC 10*% Rod Dab Stic 2013 
-£121 %pa8*94) 

Brfadon Estate PLC 9.50% lat 8Kg Dab 9k 
2028 -£109(288*94) 

Broadelonar Hdga PLC 42% (Fnriy 8%) 

Cun Prf £1 -57 (20*84) 
ftowntJeM PUC ^a% Sec Ln Stk 2003 - 
£78 

BukM/LP J 8 Co PLC Od Sna 5p - 40 
EMmarfH.PJFfdga PLC 8%% 2nd Cun Prf 
£1-120 

BulmartHPJHkfBa PLC B%% Cun Prf £1 - 
120 

Bund PLC 7% Cm Una Ln Stk 95/07 - £108 
.05 9 

Buntai Central PLC 8% Cum 1st Prt Stk £1 

- 65 (298894) 

Bumtah Castrol PLC 6% Cum 2nd Rrt £1 - 
84% (288*94) 

Burmah Castrol PLC 7*% Cum Rod Prt £1 - 
71 

Bumah Caatrol PIC 8% Cun Prf £t - 82 
Bwndane Inve aUn enta PLC 15% Una Ln Stti 
2007/12 -£118(281*94) 

Bum Grout) PLC 8% Cnv Una Ln Stk 1006/ 
2001 -£9223*4 

Butte MWng PLC Wta to&ub tar Ord - 0* 
(08*9$ 

Butte Mkitog PLC 10% (Rat) Cm Cun Rod 
Prf 1994 IQp -2% 3 (28MrW) 

Cadbury Schweppes PLC 8*» Una Ln Stk 
94/2004 - £99% {251*94) 

Combrtdga Wrtar Co Craw Out S« - £7517 
(25Mr9<) 

CanaJan Orera Pack Industr Ld Com Npv - 
R47** 

Cantta Englmtaing Group PLC 10%% Cum 
Rot) Prf £1 - 114(281*94) 

Carlton Commuitaritora PLC 7%% Cm 
Sirixad Bda 2007|Reg CSDOO) - £143 
C a terpB a r Inc Bha ut Com Stk 81 -8109 
Cemerem PLC Wte to Sub forOrd - 44 
(251*94) 

CentcK Corporation Shs o> Com Stk 8L25 - 
*32* 

Chartwood Albnce HWga Ld 7%% Una Ln 
3rk sap - 37%* 

Ch elte nham a Ooucester BuH Soc 11*% 
Pm tot Baavig Sha ESOOOO - Elia * % 

5 

CtMngkan Carportoon PLC Wanenta to sub 
tor Ord - 1 

CMBngton CorparaUan R-C 9%% Cun Red 
Prf £1 -95 (281*94) 

ChUigton CorparaUan PLC 9% Cm Ura Ln 
Stk 1999- £87(258*94) 

Chucttuy Estates PLC 0% Una Ln S0< 

2000 - £70 (251*04) 

CBy Site Estates PLC 625% Cm Cum Rad 
FM £1 -68* 

CtayWie PLC 9J5% Subord Cm Um Ln Stk 
2000AM -£07(251*04) 

Ctavatand Place HoUnga PLC 3*% tod Deb 
Stk - £39% 

Coastal Corporation Shs of Com Stk SD33 V 
3 - *33% 

Coots Paten* PLC 4%H Una Ln Stk 2002/07 

- £68 

Cords Patens PLC B*W Una Ln S)k 2002/07 
-£84 

ColmartEjyecJIrrroGtrnentB Ld 8% Uns Ln 
9Bc 01/06 - £88 (208*04) 

Commerdd Union PLC 8%% Cum tod Prt 
£1 - 109% 10 

Commare ta Union PLC 8*% Cum bid Prf 
CT - 117* 

Co-Operattve Bonk PLC 92S% Non-Cum bid 
Prf£1 - 119i 

Cooper (Frederick) PLC OSp (Net) Cm Fted 
Cun Pts Prf lOp - 98 
CoulMAta PLC 5%% Una Ln Stk 94/96- 
£95 

Cuurtatata PLC 7*% Una Ln SK 2000/05 • 
CBfl*ffSMi94| 

Courtairids CMMng Brenda Ld 7%% Cum 
Prf Stk £1 -BOhPMVQ 
Coventry BuSdtag Sodety 12%% Penn toter- 
•st Beortog Sha £1000 - £1 13 % 
erode Mcmatto n al PLC 6£% Cum Pri £1 - 
82(291*94) 

Deny Me* 8 Gam) Trust PLC OW 50p - 
£14.8 14.0944 

DWgety PLC 4B5% Cum Prf £1 - 75 
Debenftama PLC 7*% 2nd DcP Stk 91/98 - 
£98% , 

Delta PLC 10*% Deb Stk 05/99 • CUB 

pan w^ 

Dancora PLC 6JKS% Gun Cm Red FM Cl - 
117 

Dewtrirat Grom PLC 8.75% Cum Prf £1 - 
117 P5Mr94) 

Oetehust PLC Ofd IQp • 00 
Dominion Energy PlC Ora Gp - 11$ 

Dover Cora Com Stk SI . £43 S 83* 

B Ora MMnglBctaMkn Co PLC Od 10p • 
640 1 2 

Emeu PLC &2Sp(Neq cm Cum Red Pit Sp 
-80*1 

Enceronfl-MLKTeletontaaabotaBeqSta 

BfRefijSKIO - $42* SK334% S % % 8 0 % 
% 7 7 43 8. 16 9953 40^1% 22*% 
*3*4 

Eesox Watte PLC 10%% Dtf] Sttt 94/96 - 
£39 C8M/S4) 

Euro Disney aCA Shs FRIO (Dapositay 
Recdpta) - 380 91 8 3 5 7 
Euro Dtanoy S.CJL Shs FRIO (Br) - £3^88 £ 
5* TO* * J85 A M i6 J6077 3 3 JJZ 
M 22 

Euraturkta FU/Euutumel SA Unita 
(Staovwn btsutoeCQ - FH44D2 2. * 
Euratumol PLC/EuDtonnal SA Fndr 
Wts(1EPLC& 16SA WrooSUJfcrttaS) - 
41$ 

Eurotunnel PLC/Euotural SA FndrWte 
(Skxnum bnotoed) - FR337$ 

Ex-Lands PLC Warrants to sub far Shs -25 
e»*94) 

Exploration Co PLC DM Stk 5p - 340 1 
Foieon HtMngs n£ CM 5p - 134 
FM Ctacago Coip Com Stk S5 - $48% 
(29M/94) 

FM Notional ButUkig Society 11*% Pam 
IniBemg Shs £10000 •E102&GSM94) 


Firat Naflonal Ftoonoa Carp l\C 7% Cm 
am AW Prf £1-101 3 5 
Ftaanv PLC ADR (4:1) -SSpCMiW) 

Rsans PLC 6%K Um Lit Sk 200MH - Effi 

(28*994 

Five Oaks bMotmenta PLC 7% 2nd Cum M 

£1 -76(251*94) 

Fgil«B Grots PLC Ord 3p - 47 f?BM94) 

Ford MotorCo Bditl/ZXIi 8I» nb West Bank) 

-eij» 

Forte nc 9.1% um til stk 850000 > £100 


Rtentft FKftta PLC o*% Cm cun Rad Prf 
£1 -70 

fitenayHBta# PLC 5% cm CUB7 HMPWEI 

- 116% £81*94) 

GLT. Chle Growth FuW Ld CTO SOOI • £23* 
28-1 20* 

General Acddont PLC 7%* Cum bid ftf £1 
-102**3* . 

Gonana Accident PLC B*tt Cum kid Prt £1 

- 1 18* * % * * 0* £g 

Qemrdl Baonc Co PLC ADR (l.D - M* 
GMtotner redgs PLC Ord Cep 20p - 100 

G^^MWy PLC OM 10p - 108 8 


dona/ PLC 7*W Cun Prf£M 

Ran PLC 5% Cun Prf £1 -58 

Stem PLC ADR (1:1) -88.78 
Steree PLC 5%% Red Uns 

i PLC 8% Cun Prf El -110 

i PLC 9*% bit/ Uns Ln 8tfc - 


oup PLC 7% Cm 8utierd Bite 
| -£114 4 

Iro/n PLC 8.5% Cm Urd Ul 8ft 


l PLC ADR (5.-1) - ! 


HSBC HWga PLC Ckd SHI 0 (Hong Kong 

Red - SH88.1283 * .34803 C8B788 

>143538% JHB2 9 M ^738^45178 

HSBC ttdga nc 11^9% SUmd Bda 2002 
fftea-£1H 2 4 

™”3t:r:r 

tag Sha Cl (Rw £90000) - £1 19% 20* 


tag Sha £1 (Rec CMOOO) -El 19% 20* 
HdUn HoUnga PLC Old 5p - 68 
Hrimg PLC 11% Cun Prf et - 138 (2St*M 
Ftonwneraon nc On/ 29p - S*0 40 7 S0 1 h 
2 3 4 3053 % % SO % 7 
Hudya 8 Han8orai PLC Ont 5p - 248 sPe 4 
Htettepoaia WUar Co Old Bill - £1800 
Hawn PLC 4£5% Cum Prt £1 ■ 86 CBM94) 
HaaUam Group PLC 6-8% Cum Prt £1 - SI S 
(201*94) 

Htekaon Memattorta PLC B%% Uns Ln Stk 
89/94- £99(291*94) 

HBadown Hugs PLC AORfkl) - S1IL32 
(201*94) 

Hoknea Prutectt on Qnup too Sha trt Ocm Stk 
*025-30 

IS KbnataMBi FuW IW Old FLOOI - $16* 
18% 

Icetahd Grm*) PLC Cm Gun Red Prf 20p - 
130122 

Industrial Control Sendees ftp PLCCM lOp - 
153A 

Ird Stack Eachonge of UKOHap of bid 7*W 
Mg Deb Stk bS 06 - £BB% p5M94) 

Msh Ula PLC Ora MQ.10 - 2C7 p 108 200 
Jaidto Msthwon Hktos Ld Old 8L2S (Hong 
Kong Ftogtatar) - £4% 453 4£2 SH490944 
60% .7121 1 .15 .15 * JB J181 2 -04681 
.1188 £803 .7205 .721 
Jaidtoe Strategto Hdga Ld Ora 8000 (Ber- 
muda Reotaai) - 8H2SXS2812 RSM94) 
Jaidtoe Strategic Mdgs Ld Ord 0005 (Hong 
Kong Register) - SH23& SH2721382 
Jassupa PLC 73p (Nol) Cm Cun Rad Prf 
50p - 86 (201*94) 

Johnson Group Cteenera PLC 7JSp (Nat] Cnv 
Cum FM FM lOp - 1764) 86 
Kanittng Motor Soup PLC 388% (ptay 
5%1« Cun Prf £1 -81 
Wngstay s Forester ftoup PLC 3^6% Cun 
Prf £1 - 60 (281*94) 

Korea Aote Fund Ld Sha MCI - $17% 
Kurae-Eurape FUW Ld ShepDR to Br) M.10 
(Cpn 6) - 53825 

Kvaemer AS. Free A Sha NK12JO - MO80 
Ladbroks Group PLC ADR (1:1) - S225 
Land 8ecu«M PLC 9% lat Mig Dab Sttt 08/ 
2001 - £104 (201*94) 

LrthamUwTws) PLC 8% Cum Prt £1 - 70 
C28hb0^ 

Lnbawa Ptattnum Mnea Ld Ord ROJM -28 
Leeds $ Hofeedc BuHtog SoeMy 18%% 
Penn kri Baring Sha £1000 - £125 
(281*04) 

Leeds P ta ntaw n t Btadfa*} Society 13%% 
Perm bit Baerlng £60000 - £134* (28Mr94) 
LewHiohi^ParmraMp PLC 5% Cum Prt Sttt 
£1 -54(291*94) 

Ltoerty PLC 9d% CUn Prf £f - f 22 (2BM04) 
Ltatar $ Co PLC 5% PrflCur4£1 -55 
{281*94} 

Lunbad North Central nC 9% Cum 2nd Prf 
£1 - 50 (29M1M) 

London brta ma nor ta Group PLC ADR (Bri)- 
$10-9 C5Mi94) 

London Secutees nC Ord Ip - 8% 

Lonrho PUC ADR (Iri) - 82.18 23 
Lonrtte PLC 10*% lilt Mfa Dab Stk 97/2002 
-£104 

Lootera PLC B% Cm Cun Fted Prf £l - 
122% 

LovrfWmj $ Co PLC B.76% Cum Cnv Rad Plrf 
£1 - 86 % 8,', 7 A % 8 
Lowufftobert H) $ Co PLC BTSV, (NeQ Cm 
Cun Red Prf top - 25 33 (28Ml94) 

MEPC PLC 0*% lat Mtg Deb Sttt 07AOO2 • 
£103 

MEPC PLC 8% Una bi Sttt 2000/09 - E98 
(201*94) 

MEPC PLC 10%% Uns Ln Stk 2032 -C110 

McAtp»m(Attrad) PUC 0% Cum Prf Cl - 107 
McCarthy $ Stone PLC 8.75% Cum Rad W 
2003 £1 - 108 * 8 

McCarthy A Stone PLC 7% Cm Uns Ln Stk 
saw - £08 72 

Mctnamey ProparthH PLC 'A' Ord bCOl .TO - 
B».1 P»*94) 

Mandarin Qrtental Intamattun U Ld ftd S0JJ5 
(Hong Kong Reg) - SHI 006785 
Marks $ Spencer PLC ADR pel) - S36S8 
(2SW04) 

Marta $ Spencer PLC 7% Cum Prf £1 - 83 
C28M04) 

Medeve PLC ADR (Kl) -$8AS (281*94) 
MenztoslJahh) PLC 0% Cun Prf £1 • 107 
(2Sl*94) 

Merchant Ratal Group PIS B*% Cm Una 
Ln Stk 99/04 - £77 

Merouy bitamettarta 1m Trust Ld Ptg Red 
Prf Ip (Robots Fttod) - £504195 
Mersey Docks 6 Hataour Co B*% Red Deb 
Stk 94/97 - £97* (2SMr94) 

Mersey Docks $ Hmbaur Co 8*% Fled Deb 
SU 9BT99 - £93 (266*94) 

MW Kant HoWtogs PLC Wrsnta to sub tar 
ftd - 12 (281*94) 

MW-SouDmri Wteer PLC 10% Red Deb 8tk 
35/06 - £103 (28Mrt»4) 

Mdtnd Bank PLC 10*% Subord Uns Ln 
Stk 03/96 - £100 (281*04) 

MkSand Bank PLC 14% Sttoanl Um Ln stk 
2002/07 - £127% % 

NFC PUC 7*% Cm Bds 2OO7flRS|0 - £107 
NMC Group PLC Wwranta to oub tor Sto - 
102(281*94) 

NMC Group PLC 7.75p (N «) Cum Red Cm 
PrflOp - 117 20 £51*94) 

Nattond Power PLC ADR (10:1) - E87% 
Nattonal WUtmlrBter Bank PLC 7% Cum Prf 
£1-96 

rWtonel WoBtminster Bo* PLC 12%% 
Subord Una Ln Stk 2004 - £124 
H ew caad e Bidding SoeMy 12*% Perm 
Interest Bearing Sha £1000 - £115% 

Next PLC 7%‘A’ Cum Prf £1 - 75 (281*94) 
North of Ehgiand Ckrfdtog SoeMy 12** 

Pam tot Bearing (MOOD) -£114* 5* 

Qd Court brier nt ri lon al D eserves LdPto Red 
Prf S4L01 (Sterling Sha) - £38.776 (220*04) 
Ontario $ Quebec Rtawey Co EH Pam Deb 
SOtpnt GW by CPj - CEO (29*94) 

P a O proparly Hokkvgs Ld 8% Una Ln Sttt 
97/89 - £05 (28Mr94) 

psrr plc b% cum M ei - 100 

F*cUc Go 8 BecWc Co Shs erf Cum Stk $5 

- KJ0.06 (28Mt94) 

Parktend Grotto PLC Ord 26p - 215 23 8* 
Pntaraon Zochone PLC 7%% Cun Prt Cl - 
95P9MT94) 

Paterson Zochorta PLC 10% Cum Prf £1 - 
128 

Peet Fudge PLC 626% (NeQ Cm Cum Non- 
VbjPrfCI - 123 6* 

Parinstiar & Oriental Steam N» Co 5% Cun 
PM Stk - CSS (251*94) 

PMtasUar & Oriental Steam Nav Co 3%% 

2nd Deb Stk(Pap) - £34 (281*94) 

Patens Foods PLC Bp(Neq Cun Cnv Red Prf 
IOp-95 6 

PMroftn SJL Od She NPV (Retf - £BG4as 
(251*04) 

PUrolna SA Onl Shs W>V (ft to Dcnom 15 
& 10) - Bn 0090 100 35 50 85 
nattsbrook Group PLC 8.75% Cm Prf 91/ 
2001 10p - 92 £251*94) 
F’ortamouttiSSuWertaid Nswapa* ■ 
paaPLCIIJW SWCunPlfEI -135 
(20*94) 

Portugrf FuW Ld Pig Red Prf 50.01 - S6 
6t5Mr94) 

Portugese tovsstmsnl Fund Ld Ord SUM Brt 
-871(251*04) 

PotgiBtareruat PteOnums Ld Old R042S - 206 
PtmerOen PLC ADR (ItM) - S0O8 (S5M94) 
Piarier H«tttti Group PLC Oidlp - 2% * 

(2OMI04) 

Ctarto Group toe aTSoptsQ cn*Cuidled9a 

Ot PM Stk SO. 10- 193(281*90 
RfAHdga PLC 0% Cun Prf £1 - M 
(291*94) 

FLEA Mdgs PLC 12% Cm tins Ln Sttt 2000 
-£90(291*04} 

RPH Ld 4%H Uns Ln stk 20DU0B - £38 

ea*w) 

RPH Ld 9% Una Ln Stk 00/2004 - £9U 
Racal BsctraniM AC ADR Rn) - M85 
Rank Orgartoebon PLC ADR (2:1) - Siijj 
FM diart totetn a fianal PLC 5*% 2nd Cum 

Prf £1 -SB (251*94) 

FfaeW 3 Cotonn FtLC 5% Cun FH £1 -57 
RMs Property Fflaga PUC 8*% GU Una Ui 
SK 1807- £96 

R*d Gorporadan PlC 4J55% (Fntty 6%%) 
Cun W Prf £1 -6S 
Rtxftna PLC AOS -0O38S 
RafarRoyoe Power Englnoatog PLC 11% 
Cun Prf Cl -19ORSMr04) 


Ropna PLC 11%% Cun ftt £) - 1S2 
Rbtark PLC 0%% Cum Prf £1 - 118 

Royte BMk et Canute tot Cqi « irf Pifl 

Rad Prf SOOOI - Sa7«5 (28M94) 

Royal Ckuttt of SOOMnd ftoup RJC 5%» 
Com Prf £1 - 71 (281*94) 

Royal bauanoe HoMsa f\C 7*% Cm 
Subord Bda 2007 (ft £ Va) - £109* 10% 


PLC 0% Urn Ln Stk 33/98 - 


adrobuyfJ) 

SatosburyW) 

(28M94) 


Sha of Com 80c of NPV • 81? 

Saatort Co PLC ADR (3D) - 3&05 


PLC ADR (If!) - 35* 

PLC 8% tod Urn Ln Stk - £94% 


r Hotel PLC ‘B’ OW 0p- £100 


Sooutah & Nowcarie PLC 4J0H Cun Pit £1 

-72RBM94 

Scottlah i Nowcaatte PLC 7% Qiv Cun Prf 
£1-231 

SoattWi Rewa PIC Ord 50p - 387 8 0 00 % 
11 %%223a J% 44%. 70% ^07 
%89%J.788 4a02J%%11%.72 
29*%%4*%&56*%*8%7g 

Seagram DteBUre KC 12%% Data Sfe 2812 
- £130% % 

Securicor Group PLC 4JSSM Cun Pig Pi* H 


Sevan R)va &oaftig PLC 8% bWexhUnMad 
Dab Sft 2012 (82M94 - £1179* * 

Shari TtanapanSTtsabigCa PLC Ord Sta (ft) 
26p (Cpn 192} - $8.7 p 65S (261*04) 

SteO TtenapariSnittaigCa PLC S%% lat 

Micun|£i -83 msm 

SMakl Group PLC Old Op - 17 RSMrSri) 
ShWd Group PLC 5JM% {NaQ Cm Cum Rad 
Prf £1-28 

Shoprite Rnance UK) PLC 7 J76p(Na4 Cun 
Red Prf Sha 2000 - 08£ * 

SUM Group PLC 7%% Uha Ln Stk 200308 


Sfarari Grata PIC ADR (M) - 81 * (29ik04) 
StranB^ne^ngPUC 7.75% Cum Rad Prf 

StodaO (W«am) PLC 5^26% Cm Cum Red 
Prf £1 - 48 (JfiMriM) * 

600 ftoup PUC &15» Cun Pit £1-46 

s E 3 s , i,!Srya’‘ Pm “ 

era 

ftSfowH) Group PLC S%% Rad Una Ln 

SmUitOM BeeoSmSxTSmtthlOne ADH 
(Sri) - S24JJ0016 5* 

ftirittta toduartae PLC 1 1*% Dab Stk 95/ 
2000- £103 (291*94) 

Stendaid Chartarad PLC T2*« Subord Una 
Ln Sttt 2002/07 - £118 
SuldMeftMakman PLC 0%% Rad Cun Prl 
£1 -99*061*94) 

8y ut o«te Cn gbiaarbig PLC Old 5b - 31%$ 

T & N RJC 11*% 1*9 Dob SK 06/2000 - 
£100% (2614/94) 

TMPC (hWaood) Ld 885% bakac-Urked Stk 
2teO(B£482%| - E124ii 051*04) 

TBB GR Fund LJ Ptg Red Prf IpfOaia-A' 
Ptg Red Prl) -108^3 

TBB Grotto PLC 10*H Subord Ln SK 2008 

-£ 111 % 

TBB Ortahoro tov Fund Ld Ptg Rad Prf 
IpptueCMpBGItEdaedCtesa) - 66J9 
TT Qnfa PLC 10875% Cm Cun Had Prf 

Sha £1 1007 - 280 (281*04) 

Taylor Woodrow PLC 0%% 1« Mtg Deb SBt 
2014 -£1tn» 3% (291*04) 

Thou PLC ADR (In) -S3* 

Tract) PLC 4% Una Deep Dsa Ln SK 2008 • 
EB4** 

Thatand totamattond Fund Ld Ptg Shs S0D1 
- DDR's to Br) - S2B* (201*94) 

TraWgar House PLC B% Um Ln SK 94/99 - 
£00 (201*04) 

Trafateer House PLC B*% Una Ln Stk 2000/ 
05 - £S7 (281*94) 

TteMga Hotae PLC 10*% Una Ln SK 
2001AM- £09 

Transattanttc HaUnga PLC B 6% Cm Prf £1 
-103A 4% 

TYanapoR Davetopmant Group PLC 4.7% 
Cttol Prf £1 -70(251*94) 

Transport Devatopnmnt Group PLC 12%% 
Una LnSK 2008- £110% 

IMgate PLC 0%% Una Ln SK 01/08 - S3B 8 

% 

Urrigea* PLC B%H Una Ln SK 92/07 - £94% 
Untoroup PLC 7*K Cum Cm Rad Prf £1 - 
cob um 


nVUV 


Unlawr PLC ADR (4.1) - S83 104.7 104JT48 
Won to muaUe n W Co PLC 8% Cum Prt S* 

Union bterruflonW Co FlC 7% Cun Prf SK 

El -87(201*94). 

LHaya Corp Com SK SUrf -Si5%$ 

Uttaty Crtola PLC Warrants to sub far Old - 
21 (251*04) 

vatuo 5 tncc/no Tndt PUB Wonante 88/94 to 

aubfcrOrd-4ag6M94) 

Vaa Group PLC 9-875% Deb SK 2015- 
011 (251*94) 

VWcare l*C 5% Prl|pkiivCtin#SK Cl - 45 
VWrers PLC 5% Cura(T«x Free To SOrfPrf 
SKO -73 

Vodatone Group PLC ADRDOfl} - (77 8* 
J28% % .7473)5 8% * 

Wagon Industrial F(k%a PLC 7^5p(MaOOw 

Pto PrflOp -152 (Sift®* 

WefitertThoraas) PLC Ord 5p> 29$ (251*94 
WtetuD (S£J Group PLC 7%% Cun Prt £1 
-104 

Warbug (S-GJ Group PLC Cm DM 25p- 
410% (2SMf94) 

Warner Eaten HUgs PLC B%> Us Ln &k 
91/06 -ess 

WadnougMfifarf PLC 8*% Cun Rad Prf 

2006 Cl - 106 (291*94) 

WtacBffU RJC APR P=1) - *8395 % 
VtombtajPL08p(Ne8CnvCun Had Prf 1099 

West Hampahtre Waar RC Od £1 - ni* 
(29Mt»q 

WBdand Group PLC Wurante fa sub tar Od 

-242 2 534.3 

WesbmlGnxto PLC 7%% Cm Cun Brier - 

400 U 

Wtritbreod PLC 7% Kd Cum Prf SK £1 -78 

gaum 

WMfareed PLC 7*% Um Ln SK 9S/98 - £08 

(201*94 

Wtbbraad RjC 7*% Um Ln SK 06/2000 - 
£09(295*94) 

WNteeralt PLC 5.1% Cun Prl £1 -B 
£2»*94) 

Wktney PLC 878% Cm Cun Red 2nd R1 
2000 £1 - 82 9 7% BO (25M94) 

Mb Corroon Group PLC ADR (fel) - £18% 
Wtoon(Como4y)Hdaa PLC 10%% Cum 2nd 
Plrf El - 131 (2»**4) 

Wreeham & East Denb Wetw Co4JHi PtPg 
Ord SK - £5800 

Wnwhem » East Denb water CO 3L5% Ptf>0 
PrfSK-£5BOO(25M04) 

Xerox Ctbp Com SK SI - $03% 

York Wamworio PLC Ord Wp - 338* S2 2 
YttMere-Tyne Teea TV Htdga PLC Wta to 
aub tor Old - 184 7 

Yuuig & Core Brewery PUC 4.2% Cum Prl 
SK - 68 

Yiie Cetao a Co PLC 11%% Cun Rad Prf 
1998/2003 £1 - 117% 

Investment Trusts 

AMuncs Trust PLC 4%% Deb SK Red attar 
15/5/50 - £47 (ZSMrfH) 

BaHte OBtara Japan Trust PLC Wta to Stto 
OrdShs- 220(29Mr94) 

BHlia Offord Stan Nippon PLC Wammto to 
aub tor Ord - 120 2 
Brtttah Asset* Trust PUC 'A* 5% Prf 
StafCum) - CS4 

Brtttah Assets Trust PLC Equates bide* ULS 
2005 10p- 158% 9 CSMriW) 

British Investment Trust PLC 11.125% 
Secured Deb SK 2012 - MU * 

P9MTO4) 

CLSCJnveatmant Trust PLC Ord 2Sp - 107 

(251*04) 

GapKai Geamg That PLC CM 25p -480 
Ctemante Korea Bnagtog Growlh PuvBha 
510 (Reg Lux) - E&221 S 12* (20MriM) 
EUkriwrgh tnvestmert Trust PLC 3*% Dab 
Stk 1098 - £82 (281*94) 

Enptah A ScotSah fmestora PLC "B* 2Sp - 
113 

FIdtey European VeJueo PLC Equty Ltntod 
Uns Ln SK 2001 - 14S £91*04) 

Finsbury Smite Co’a Trust PLC Zara Dtv Rt 
26p - 178 B 

Remng For Eastern tw Treat PLC 4%% 

Cum Prf £1 -49 

Oartmore Shared EqUfy Trust PLC Geared 
ftd toe lOp - 123 %A % 5 
Gartmam Vteus Bive sbn w ili PU5 1234% 

Deb SK 1005 - £103 (25Mf94) 

HTR Japamee Stredtor Co* Treat PLCOnf 
2Sp - 103 % 4 % 5 5 8 
Lazard So tsct Investment Treat Ld Ptg Rad 
Prf aipGMUl Aefcre Fund -£lM8 13JB 
(251*94) 

Lazard Select tovasimert Treat Ld Ptg Red 
Prf 0.1 p UX. Active FuW - EK31 U34 
(251*94) 

Lteaml Setact tovasimert Treat Ld Pig Rad 
Frf aip UK. Liquid Assets FuW - £10 p 
90805BA99 


Prt 0.1pBjrope«retaK Fund '£1733 17J3 

LorWon 5 St Uwrenca IwM** PlCCW 

MuSw Incaate That PLC 4J6% Cun Prf £1 
-87 (2fiMr0<) 

Maw Throgmcrtto 1hatQ0B3) (V! 2mo Cpn 
Dab SK 1998 - £7B w 
ltertoMProndTlmMnteraTWPt«« * 
Wtai»toto*ubfarOrt-45.P8MrM) 
Partoas F«nch ImraatmarnTTOM 
"8" Warrantatoaubfor Ord -34 

FDvar Pta» 4 Gan hwrft That PUJ 5% Cun 
PMSK-aepoMW) . 

Stfradar Kum Fund PUS CM W - 

S11* (Z3lrti94) 

Scotttah Easton tm Tnart PLC 4%W Cun 
Prf Stk- £50^ 

Scctaeh Wor5ga(te Vf^PLCmfr-IW 
Stepped totenat Dab SK 2020- £1504 
Spirare bwaatniteri Tnat PLC Rarfaod War- 
ante to sfa far OTO ■«%; 

TO Sraftr Campania h* THmt RX; 4%% 
Cun Prf SK - £S0 E9M94) 

•niogcnorwn That PLG 12 S/18% Dab Stk - 
2010 - £128% (2BW94) _ 

Uptfawn fewraftnanr Go PLC Ord tBp ■ «0 
PflMrfMD 

Wtoroore Prapwiy favoMmant Tat PLOWta la 
Sub far ora - 53 

Wlten towatmarn CD PLC 8% Dab SK 9Bf00 
-£1Q2%C2SMr94) 

Mte towstnum CD PLC B%% Dab SK 
2016- £100 (25MI94) 

USM Appendix 

Beckartran fteup PLC Wteianla to aub tec 

M-0%(3MrB4) 

Datota ftuup PLC OM feflL25 - I£D2 
(291*94) 

H3D HoWbigi PLC Old K1L60 - E2K2JS5 
GUn Maw PLC <M25p -4156 

Greet Southom Group PLC (LTGp Oiiu Cm 
Ftod ftf ep - 174% (281*04) 

MMtand & Scoufah Raaourare PLC OTO 10p - 
3%B4* 

Ftedax Graup PLC CM bSM6 - K048 
Steribv Pubfatang Grotm plc 8% Cm ftm 
Rad Prf 2000 a - 142% (291*94) 

ToM System* PLC Ord 3p - 32 

Rute 535(2) 

Adnams ft Co PLC *B* CM £1 - ESS. 
Amatgansted Metal Cttp PLC Od £1 - 
£08075 

Amtegamated Ntotal Cop PLC 8% Cun Prf 
£1 - £04 (201494) . . 

Ann Street Brewery Co Ld Old £1 -£3% 
ftaanal Rratbdi Oub PLC Ord £1 - £870 
385.7 (25M94) 

Aston VS& Focabal Qub PLC Old £8f1 vote) 

- £95 

Btetihvs toMstaneiAfrimX&L) Staritog Bd Fd 

- BX44BSM94) 

Btoeua Hokflngs PLC Ord Ip - DL42 
Ehmcote Holdings PUC Ord 5p - £0^3 
(HMriM) 

Broakbsnk ftaup PLC CM lOp - £1% 

(2B1A84) 

Budrera Startoa Bend Fund PIB Rad Prt Ip - 
£10151 OSMOQ 

Cooper Ctarke Group PLC CM 5Dp - 72 
. P8Mr94) 

Ctnmtry Gardena PLC Ord 2fip - QL58 
ga.S Management PLC Old lOp - E1J5 
1J07 (28Mr94) 

DoriraHJi tons PLC 10p - EttlS 
Dawson HkJgs F>LC Old lOp - CL08 
Dhon Motors FlC Rad Prf 104p -£t33 
(BM94) 

Enrtcn RootM CU> Co Ld OTO Stk £1 - 
£2400 CBMriMI 

Eabhem njCOrd 5Qp - 92.7 SM 
Faxcete Braadatat CorpcraUan PLC Ord Ep - 
£047 

Gtaa (Gaergte & Co Ld ftd £1 - £8 Ol 
(251*04) 

Gander HoUoga PLC Ord Ip - £0086 
0JJB7S QOMrfifl 

ftteg FaMteGraui Ld Ord lOp - ZA2 
ftwroeoy Gbb Light Oo Ld OnMOp - £0846 
088 

He n gal its Company PLC Ord 15p - Q0J23 
Henry Cooke Group PLC Ord IQp- 
£0800038(291*04) 

I E S Group PLC Ord IQptPfly-Pd l/B/94)wtth 
Wte -£455^51*04) 

ITS GnafaPLC Ord £1 -19/091075007 
(291*04) 

NVESCO MU htamattonel Ld Japan broanna 
& Growth - E2.10B (28M94) 

Jtewrinps Bros Ld OsiS 2fip - EU05 
jura ftoup PLC Old Ip - £0086 
Jura ftoup PLC Wte to atea for Onl - Eom 
eSMr04) 


Me*wrort BsnKriiW ^ ^ 

Maketa Fund - £18.47 1851 

KMnwK* BwimMAind Man ^ansto 

Fund -SU8034 03*89^ ' 

KteMHart BanaoriW FUn* **■" «l Rate 
- EI4B 

IGaln^ BanrawpnO Rund Mwi W B^ity 

L^2«PLcfflop-£l^»M« 

Lawrfa Group PIC tw£1- £17% Iflj - 






LaHehars Stans Ld Ont £1 - £2A 2X3& 
London FWucbiy TruK FlC OM m> - 
EOD0312S 

London Rot PLCO wt_1»r.tt jy_ _ . ■ 
Martea & Muoantto BeoiiSM* PLC On) 7 
teojai . £2j pei*04 
MoCK krtamattanai Oroua PLC (Mlp- 
£042 

UuRison Ld OnitOp -£M6 

m VVA Ld Old £1 '■ £B% 

Nattonal Grid Hdga PLC CW TOp - OS7 ' 
Ntetoml PuttKJ Coip U Onl lOp -EM.. 

' 051*04) 

NMbunr Ftecacouree RjC ftd £100-0050 
QSAM4 

NnttWM BqKTarion UMM 
pan/bfaeari ftesouws PLC Ord 1p-m07 


p^prauraUKEay) Offshore Aatan ftMw . 

Maricata - SI-48# _• " 

Parpab/UMamte) Oftahore Enmgrfg 0n%- 
$8.73209(251*34 

fterprausitJeraayf Offshore Fft Gtaten ftwti 
Fa- £2^753 (291*04 
PBv FMpvty ihMstmants RjC Off eop • 
£021 

Item Property tanCrarts PLC A QnLEl - 
tynrot 

Ftoioraa PootMl CUb PLC OTO 10p - «1dE 
Ssesn Hawk Group PLC ftd CT - £1JB 
C0M/S4] 

Schrader M&asgamant SanriceafO u aniS a irp. 

dsr Europeen BuW - £7.211183 (2SU*q 
Gataet tedusMaa PLC ffaw ftd 7%p (9p Ptfl 
- £OD4 0JJ4S 00475 . 

Severn Vtetoy Ftafa ayd U fapP ljC Ord a - 

auptard Navna Ld 'A' Ord £1 - £8% 
Bbtota* Raoaaroh Ld CM 2Sp - C0.12 012 
(291*94) 

South ftaen Hkfas PLC Old Ip - B0J0125 
(2fla*90 

Southern NUWBpap a ra PLC Ord BI -5122 

42S2S 

Southern Vectta FU Ord TOP - £0225- 

(20MT94) 

Sun OSBriteto Id Of Royals* Unfta ip- 
33 

Sutton Htetwur HWge Ld Od asp - EL48 
TtewrateatDnnteOII Co PLC CM asp - CLS9 
085 

Bteohur PIC Old 5p- £01101125 
Ttednr Network PLC CM £1- £12 I2B3 
12BB 1088 

UAfTT-MOMc PLC Old 26p - £0776 062 
Urtteom Inna FlC Old 25p - £067 (281*94) 
Veterinary Drug Co PLC Ord Cl - £311 
pBMr94) 

Vteta fttateinnwnta PLC Ord 5p - flOODTS 
Mtobtag Aaaet Management Jersey Uocuy 
M GoW 8. General Fd- £101 
WMBbta Ld W Non-V Ord 23p - £15 15% 
18 18.08 18.15 

Wanbwarth totematton a t Group PLC Ord Ip - 
QLOOSpaiMH) 

MMfohuroh Graup PLC CM lOp - £057125 
WbKhaater NUMMedte PIC Old Bp -BLS7 
(29M94) 

Yates Braa Wins Lodges PLC Ord Sflp - 
e2.1S2.1B7S 

Young Group PLC Ord 10p - £00325 
(201*94) 

RULE 638 (4) (a) 

Bargain 9 marked In securities 
vrtnre principal market ia outside 
the LHC end RepMHRc of IratandL 
Quotation has notbeen granted in 
London and deeBngs era not 
racoidod bi tho Official UsL 

AusL PUuidatlon A32.133 
Churchn Rsa. 10 (K/3) 

Cqy DavW u pm m 888.18 £20/3) 

DaMppcm acreen Mtg Y714CB 
FUula Affl J2968 GS/3) 

Hertend Lichn F9 S2225 (»I3) 

KUftn Mdeyrfe 77J 
Malayan Csmwri MS1402 
NaSuM) Bactrontoa3 p*3) 

North FteWaraMbira E4B3 paq) 

Ol Saaroh 38 pBO) 

Ftogd Hotob 1054 

Sterar Oomine. 8K38000 

irraasn Minfag ntn iirm pri) 

Weet/Wd MnaiteariOO 

ar / ana*a*irtefdteetet* Ptea w to B Ct i MB * 



<a» 




1994 


1994 


1994 




THE QUEEN S 
AWARDS FOR EXPORT 
TECHNOLOGICAL & ENVIRONMENTAL 

ACHIEVEMENT 

Thursday 21 st April 1994 

A Queen's Award is one of the highest accolades given to a company and the reasons to 
publicise the achievement are many. An award winner will undoubtedly gain a better 
standing within the business community and this could open new doors by attracting new 
clients, customers or contracts. Publicity will let your current customers know of your success 
and can also act as "thank you" to suppliers and employees. 

The Financial limes has supported the Queen's Awards since their introduction and has itself 
been the proud recipient of the award six times. Over the years we have carried more 
advertisements from proud winners than any other national newspaper. 

The publication of the 1994 feature will be on Thursday 21st April 
to coincide with the official announcement on the Queen's birthday. 

The weekday Financial Times reaches: 

• More UK Business men & women than any other National Daily Newspaper. 

• More Board Directors than any other National Daily Newspaper. 

• More Captains of Industry than any other National Daily Newspaper. 

• More than half of Europe's top Chief Executives. 

. 

Advertising in the FT confirms your success not only to business men & women in the UK, but 
potential clients throughout Europe and the rest of the world (over 116,000 copies are sold 
outside the UK). 

Satmteft jBMRC Business Surrey 1993, Captains of Industry Sorv^jr 1992, Chief Exeeotfoos in Surop* 1930, ABC July - December 1993 

For a copy of the brochure on how award winners can promote their companies most effectively 
and the current advertisement rates, please contact: 

Emma Goddard or Tma-Louise Collins 
Financial Times, Number One Southwark Bridge, London SEl 9HL 
Telephone: 071-873 4053 / 3301 


r **-A >.*-* 







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LONDON STOCK EXCHANGE 


«A*KET REPORT 



give ground in a volatile trading session 


Stock Market Editor 


■ i'm i* 
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tiading session for the 
fcst quart® of 199? saw UK stocks 

7oIatae ahead 
^SL? U3 ? r weekend. Wiifc m0 g£ 

lmtU Tuesday, Investors were 
watting cautiously to see how 
Tokyo and Wan Street would react 
08 101,1888 . <3ata ^I^ded on 

J^g^e sharply at the opening, 
after Wall Street had suffered its 
torgest daily fen for the year Lost 
don stocks steadied in the Footsie 
3.061 area, with the help of firmer 
bond markets across Europe. 

Recovery was very uncertain, 
however, when the pound came 
under pressure again on nervous- 


trading volume 


ness regarding the political outlook 
for Mr John Major, the UK prime 
minister. 

The market turned better when 
gUts responded favourably to com- 
ments on the UK economy from Mr 
Kenne th Clarke, the chancellor of 
the exchequer. 

Encouraged also by good com* 
J»ny results in the bidding sector, 
the ET-SE Index moved into posi- 
tive territory, and was within seven 
points of the 3,100 mark in early 
afternoon. A cut in the Bank of 
France intervention rate steadied 
nervousness on the interest rate 
front 

However, the mood changed very 
quickly when both the Dow Aver- 
age and US Federal bonds turned 
off after a firm start to the new 
trading session in New York. The 
Footsie slipped back to show a fall 


Aflcoant Dea&sg Dates 

1M DadlnoR 

T0 14 

TO® 

April 

Optfon Itafefeh* 

TO® 

N* 7 

Apr* 

LHtDaTOOK 

TO S 

tor 6 

tor 92 

TOMOto 
torS . 

tom 

m,3 

•mm ttooo Padtnpa 

ll l'«to H4 Cttito fill. 

may toil 

ptaoa tm ton 


of neaziy 10 points before rallying 
yet again. 

The closing reading put the FT-SE 
Tnrier at 3^86.4 for a net loss on the 
day of 6 points. The FT-SE Mid 250 
hides fell 112 to 3,7523. Seaq vol- 
ume of 725.8m shares compared 
with 773m in the previous session, 
when retail business jumped 
sharply to return a worth of 
£L76bn. 

Hopes that UK markets can disen- 


gage from the US were dented by 
the readiness with which the Foot- 
sie reacted to bearish movements in 
the Dow Average. Some analysts 
warned that selling was inhibited 
by the the end of the trading quar- 
ter and that the London market was 
much more nervous than it might 
appear. 

‘‘1987 re-visited,” was the title of 
the week’s strategy note from Mr 
Nicholas Knight of Nomura 
Research, once the buD but now the 
bear of the London stock market 
He sees the Dow Average at 3.200 
and the Footsie at 2,800 in the near 
term. He believes that a further cut 
in UK base rates is almost inevita- 
ble on political grounds but should 
be taken as the final signal to sell 
equities. 

Volatility has become the keynote 
of both equities and gilts at present 


The FT-SE Index travelled through 
a range of more than 30 points 
again yesterday to show a loss on 
the week of around 1.4 per cent on 
the week. Government bonds, 
although Yi point better at the lon- 
ger end yesterday, have suffered 
similar changeability which bag 
prompted hints of large losses by 
some trading firms. 

The dosing picture on the stock 
market was somewhat mixed, with 
special situations providing most of 
the highlights. Firmness am/mg the 
store and retail issues was some- 
what deceptive, with both King- 
fisher and GUS moving higher 
against the market trend The blue 
chip multinational stocks were 
unsettled by uncertainty over the 
US dollar and the prospect of an 
ext end e d weekend break in the Lon- 
don market. 


FT-SE-A All-Share Index 

1,750 
1,700 
1.650 
1JB00 


Equity Sham Traded - 

nraowBTOyviawJiei^aicSrtfla: ■ ■: 

tan-imitat Mhrti and ***&** tummr 
1,200 



.«» , 
SnnKfTtinpMa 


■ Key Im Uc ators 

Indices and ratios 

FT-SE Mid 250 
FT-SE-A 350 
FT-SE-A All-Share 
FT-SE-A Afl-Share yield 

FT Ordinary index 

FT-SE-A Nan Fins p/e 
FT-SE 100 Fut Jun 
10 yr GW yield 
Long git/equity yld ratio: 




1994 - ./• 

.. • . 



[ FT-SE 100 Index 


3752J3 

-142 

Oosing index for Mar 3l.„_ 3088.4 

1570.4 

-3.7 

Change over week . . ... 

-42A 

1561-97 

-4.18 

Mar 30 

3092.4 

3.72 

0-71) 

Mar 29 . — 

, h .3123A 

2439^ 

-63 

Mar 28 

3129A 

20 £4 

(20.66) 

Mar 25 — 

.-.3129J) 

3067.0 

+8.0 

High* . 

3150.2 

7A5 

(7-59) 

Low* 

3061.9 

2.12 

(2.15) 

1 Intra-day high and low tor <mk 


■ Malar Stocks an Thursday 


EQUITY FUTURES AND OPTIONS TRADING 


°Q* prtca cfawoa 


MKL 


U;. 


ASOAQmrt 2,800 fia U, 

tobStSSZ** ’-JS 

«ert FUnt 600 te -i 

1.4® 343 -10 

1.1® 50ft « 

1.000 346 -a 

■ 1^00 286 

~M40C. Brit. FQodst" *13 359 *£ 

. MTO.BA.Pat 6 3*2 538 * 

_ '■ - -- .-.Ifi® 1000 -7 

BAT Wxt . .4.100 4tsa 410 

§*T lao® 12Tb 41* 

BCC 687 436 

BOCt 1,1® 718 

MW 348 

BrtiKfc. 176 33o 

■ art aon a 02^ 

WW m SfiOO 2741. 

amf -at® aaoh 

■ Bar* a Sodfenrff ; -1,000 1® 

SaKS»y*t 2J00 624 -6 

‘ £®0 532 -3 

1.1® • ’ 326 -.-la 

787 442 +1 

ttMWt • 1.1® 6041a -Ua 

BTOttart" 1,000 447 «4 

: BtLMmpMvt . - JB 8 485 -3 

BrfMAkwnwf 3TO 4D*h -Bh 

weidot-. ■ 7flOO 301 lj -£l2 


Lonrtio 

in 

Iff** 

MR 

atswflb- 

Marfca A Bpenoarf 


0 «*J 


Vet. CkMflO 0*7*0 
OOOa prtoa eftmoa 


fSST 


MOO Wth -4 

MO 194 

67S 446 -3 

640 1® -a 

145 738 418 

3®0 407*1 

386 636 * 4l 

1AOO 123 44 


NUHMSMtf 
National Pmaart 
Haw 

Nath Mbri Wand' 
Norttam Boot 
Nafliam Foodaf 


PSOt 


Pomfotof 

PnTOntott 

SST 

rizt 

HOON 

nocittt fi oanwt 


EHUdl Staetf 
Sms . 

' BonmnCaaMt 
Baton 

Catiaxwwf . . 
CTOgySahwappaat 
CUor Group 
.Caradanf - 
CWm Comna.t 
Coata Vl)«aat 
-Curat, UWoerf 





-T 'Nopat ‘ 


Udbn*4t 


7.1® 142 

in® i7B 
1® 816 
%B® Wi 
63® 455 

1.7® <6Sh 
347 316 

13® 363 

13® MS 
23® 2281a 
838 572 

65 264 

. 684 .523 

180 442 

.-351. «7 
■ : 2 B 1 2 ® 

era bts 
. 18*. «22 
318 478 

840 388 

UE 615 
2*3 187 

4.0U v 12Bfe 
J 7K an 
4300 25812 
1,1® ■ ••• 820 
73oo sas**-. 
6.700 . 600 . 

303 370*| 
-13® . 651 
43® 49 

2300 607 

23® 161 

-1300 338 

'Un..-4ar - 

.nut, 730 
278 - 348 
73® 26BV 
It® W7 
.1168 .• .383 

43® -I88- 

13® % 815 
6*6 602 
13®- 377 
1 ® 


48 

~ *1 
■ -a 
Va 
«8 

45 
-11 
-40 

♦U* 

41 

. -r 
4 . 

_ 

rfl 

-fi 

414 

46 


:S 

42 

■47*B 

.-46 

•481a 

- -4 

- -*1 

- *1 
*ie 

42 

' n. 

**• 

-3 

Oh 


I Mt . 

ftartoWt 
Rannf 
FtoOaP 
Rjlfik 


SoonWi 5 NatKf 
Seen. Hut P ' D a ct 
ScotMiPoMrt 
Sturt 

Sadgartek - - 


Bunuiltaul 

ahaHtanapaat 


EBu®esa .... 
.ftittiOWHlA 
Srottb & Naphowt 
SnNBatcW 
BMW Qaaohgn I 6 a.f- 


fio uUw m Bact-t 


Sooth Waat. Baa 


. Bandad Challt - 


IMmatff- 
Tata 61x1a t 
T%*» WboOo* 
ItNOOt 


ItomEMt 
faa*to*t ■ .. 

IMNBPrHnoaB 


S«S2.- 


lAPorfa . • 

la 0 a( 6 Oanoatt. 

Ltoyda Abbsv 
London Baa '- 
d umat 


:.i«b 

- M2 . 

1.1® 458 

278' 381 

2*00 . see 
8® 121 


• 42 •• 

v »•' 

• s ; - 

-8 •• 
-3 


I v FT-SE too Mu 



SflOO 459*1 
1^400 46612 
33® 233 

>3® 640 

306 70S 

13® 209 

129 685 

43® ' 6*1 
13® 083 

13® 1® 

3,700 538*2 
73® 304*2 
5® 836 

ZACD 822 

258 SOB 
33®. 387 

931 811 

73® 598 

13® • 8® 
OSS ' 228 
23® 18® 

73® 181*2 
1,7® 4® 

13® 222 

2.7® ®4*a 
43 11® 

«7 B20 

23® 3M 
' 13® 414 

MOO 114*2 
23® 2® 

681 646 

617 . 670 
4300 . 6® 

13®- 582 . 

13® 244 

13® 533 

13® 138V 
23® 372*2 

1JB00 332*2 
• 1® 476 


,« 664 

...SI' 674 

80* 1041 

•' 146 2® 

23® ' 324 
8® 225 

532 364 

2300 215*2 

23® 113 

1,1® 440 ' 

318® 1® 

-23® 213*2 
821 . 525 
23® 1061 

, 13® 2» 

43® 95 

133 '368. 

13® 1013 

.f3® ,39 

513 026 

13®- 516 

384 . 1ST 
23®' 57»* 
371 ora 
■ 92 687 

iara 

827 2® 


446 Ml 
550 .518 
13® 725 


-a 

+4 

48 

-2 

+10 

-® 

-7 

si 

-2 

-n 

41 

-8 

ff 

+16 

-10 

4t 

-26 

+6>a 

-1 

•4 

-B*2 

-f 

+7 

♦13 

-fife 

+1 

+8 

+7 

+2 

♦4 

-1 

•12 

-h 

-3 

-5% 

-1 

+1 

•+5 


#1 

■H 

-a 

- 1*2 

--6 

+2 

<6 

: +18 

'+T 

+fi 


-a*a 

-7 

-8 
-1 ‘ 
+3V 
-2 
. -a 

♦i 

+6 

*13 

+2 

-fi 


Derivatives markets shared 
in the volatiHty seen In equity 
sectors in the final pre-Easter 
trading session, writes Terry 
Byiand. For much of the day. 
the June contract on the 
Foofsie traded at a small 
discount to the cash market 
but traders stressed that 
dealing was restrained. 


The final reading of 3,058 
showed the contract at a 
substantial discount to the 
cash market but some ground 
was recovered in after hours 
tracBng. 

Trading volume was swoHen 
to Just over 15,000 contracts 
in tee June contract 


■ FT-SE 1® ff®EX FUTURES {UTS E2S par ftil Indax point 


(APT) 



Open 

Sett price 

Change 

High 

Low 

Eat voi 

Opan bit 

Ju> 

3085.0 

3067 J) 

8J> 

3088.0 

3048.0 

15361 

67355 

Sep 

3061 D 

3085.0 

SO 

3001 JO 

306010 

18 

895 

Dee 

- 

3094.0 

8J3 

- 

- 

0 

0 


■ FT-SE IHD 2SOMDEX FUTURES (LIFFE) S10 pvh* Index pcM 


Jun 


3730.0 372S.0 


-353 373a0 8720.0 


2214 


M F1%3EMP2SPMDBtHJ7llHES(OMUQgTP par M lldto petit 

Jin 37300 37400 +103 37353 37300 11 785 

At apart Manat tgua ant tor pmtmm day. t Exact nekrm thorn- 
■ FT«1«BOeX OPTION (JJFpgcaOSS eloper MkxMxpoW 


2fiOO 2950 3000 

O P C P C P 

Ar t8« 7 134 13 Oh 22 
May 137*2 33 t8B*2«*2 
JK1 Zt2 46*2 143 


3050 31® 3160 3200 3250 

CPCPCPCPCP 
54*2 43 SI 68 15 104*2 6*2 148*2 2*2 198*2 
9512 80*2 88>2 103*2 48b 132*2 33 167*2 28*2 204*2 
77 113 *s97*2 90 122 68 151 40 1B1 3B 217 


M 222 54 16612 68 156*2 87 128 108*2 103 132*2 82 161 81*2190*2 <8 226*2 

Dact 29} 107*2 231*2145*2 776 188 129*? 239 

O® 66M P® 5L72B 

■ EURO STYLE FT-SE 100 WDBtOP'TlOH (LH=FQ E10 par hjjndwxpolrt 

' 2875 2989 2975 3025 3075 3125 3175 3225 

tor 187*2 4*2 143*2 9 102*2 18 08*2 31*z 39*2 B*2 20 64*2 9b 122*2 4 168*2 

U« 2*7 28*2178*230*2 143 53*2 til 71 81*2 01*2 SB*2 116 38 147* 2 M*2 103 

J® 187*2 47 122 BOV 73Vl30*j 48*2 197 

Sap 235 7V 173V114V 12 ]i z lB 0 ^ SOV 217 

D«+ 275 112 212V 148 159 189 115V241V 

i ij® Mi 1323 * UDdstjtaQ lada oho. Mm Man sc Mod an Mdonad prtaa. 


C*1J 

tlaai 


■ EURO STYLE FT-SE MID 250 MDEX OPTION (OMLX) £10 per U Indax point 


3850 3800 3860 4000 4050 

tor 10*2127*2 4 172*2 2 220 1 270 *2 314 
Off 0 fete 0 fiffnat {rt® TO ntas •* fe*aa at 4JQ® 

4100 4160 

*2 362*2 *2 

4200 

| FT-SE-A INDICES - LEADERS & LAGGARDS j 


Parentage d on g® once Oecnber 31 TOSS based an itueday Match 31 
aapr _ *16« 84WM6e -291 FT-SE 1® 


■142 Wafer. 


LN—16HM® — 
BfeSMfeb WtfeM . 


FFSESnaKntairs — +3® 
FF-Sesawcw +223 



+673 

. +643 Tcda&ASBia -3.46 FTfioUltal 

+65Q BbMbo am t Ifetcta _ -146 Ufettaxm. 

, +42J v — 1 -372 

.♦M3 Bl elm -447 ftzMfe* Good . 

lflnolEtackB -432 fen®v GtBwe 

BBcfescAaKEU® SX UBc. 

+199 HofrRMd* -633 

+1J54 QKtdcfe -MB 

*1.16 OL >6)61 -C42 WKt aabua. 


+035 spaa. moments — -a® pwpwt 

-002 niBuFcca 604 

-0® FTS&Afi&aa -7.14 


-8.18 


. -971 
.-972 
-9B7 
- 10 ® 
. -102B 
.-1051 
. -«LM 

-1130 
. - 11 ® 
. -T234 

. -13.17 


■0.17 Fooa I 

-1® FT-S&A3S0 

-239 towsaxxxTmsfe. 


ftnacKflofe 

-1353 


-15Z7 



Mu 

-1800 


FT - SE Actuaries'' Snare Indices 


i he UK. S&.des 


tot* 
Mar 31 dgtffc 


Mrs Mar W Hw28 a® 


Dti. &IR PS M4 

m i*n> b® |M 


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fT-SE-A AUrSaUE 


3KB A -02 3082.4 "31284 31283 28784 094 821 1948 Z7SZ 114238 38203 2094 2I3UiarUS3 

37578 -04 3787.1 37888 37817 31072 328 543 2284 2487 1371.43 41528 3094 2878313717® 

37785 -83 37878 3807.4 38046 31242 138 584 2122 25.18 137583 4M07 W794 3745 VIS3 

157&4 -02 15747 15883 15984 1CSA 078 082 2813 1032 119978 17283 2&W J3487M983 

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188005 -05 189839 191055 191007 1558® OK 481 2723 (021 <443.15 208072 4SS4 1300® 47V® 

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2®S4 
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41807 197U94 
17783 2094 

2004® 4094 

208032 4091 

17601 a 294 



FT-SE Actuartes All-Share 

tof* 
Mar 37 tftsa% 


MV 30 Nr a UV28 


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Pit XJ *9 To« 

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■ 1993/94 


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90U 23777B4 
13194 2VU8S 
13783 21/1/86 
8845 1471/86 
1383.79 31/12/92 
138178 31/1292 
61® 1371374 


LOW 


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72 fiMMN UHW 
15 OLMWiafedn 
ie u Bagteatai &Pradpi) 


2430® -02 2444® 247157 2482.16 216410 075 597 

378096 -1.1 383238 388052 389590 3275.10 042 450 

235036 +01 234956 237558 240004 2037.58 053 530 

1784® -13 1787-81 180013 1600® 203630 371 352 


2448 3090 
2554 41® 103357 4187® 
2352 31® 951-10 2B153S 
3538 1538 1011® 214010 


80/94 TWO® 1871/33 288138 
2/2/94 28BUB 7/57® 4TW5S 
8/2/94 171890 187W3 2B15J9 
573/93 1688® 1571/® 39400 


9/279* 9B99B 1BOC8 
2/2/84 1000® 31712/85 
02/94 982® 20/2786 
BffiflO ®U0 2877/86 


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- 23 

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242391 -87 
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188521 +09 
191324 +0 A 
222328. -0.1 
2883.1 Q +07 
175352 -01 


20849* 
1321.19 
218394 
247101 
2082.79 
2001.48 
1524 £8 
2256.82 
2895.78 
178270 


395 401 
292 STB 
3® %XJ 
392 471 
4® 451 
398 &41 
2® 3.10 
472 339 
2 97 49* 
3® 631 


18® KBS® 2132® 
612 100670 1SBU0 
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2592 1054® 251895 
28® 102573 223157 
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2B97 10S9® 291871 
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17® 97753 282698 


2/204 

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2/204 

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2/2/94 

2 /2S* 

18/304 

4/394 


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13/1/83 

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1/1/93 

19/503 

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31/304 


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2125® 16/7/87 
233322 24/104 
2918® 4/204 
2231® 2/204 
22S8S8 42*4 
201U7 2/204 

2SI671 2/204 

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2325® 2/10/87 




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907.11 387290 47TOS 
881.10 aff i® 187104 
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83744 BBU4 1871/84 
91024 289*14 18/204 
97018 196013 1971/9* 
87048 8792® 471/93 

8Z7® 4738® 29712/83 

87064 2ZS7J7 IBTUM 
100*18 331133 272/94 

1073® 238092 17/2/9* 
105064 3348.11 17/2/94 
83492 223620 2671/33 
333.43 1884® 287(293 
97598 1888® 2/2/94 

96791 2805® 37270* 

978® 1400® 6Bm 


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1915® 4®B3 

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2140® 2571/93 
1695® 11711/93 
1427® 11/293 
1428® 171/93 

1912® 13/1/93 
1128® 137126*3 


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2484® 1971/94 
3497® 11/B92 
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268*14 1872/94 
2847® 28/SS7 
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473083 29712/83 
22H7J7 1871/94 
331039 272«4 

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223020 28/1/93 
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1888® 2/2/94 

280098 3/2/94 

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1971/94 2191® 
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2771/88 
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■ Hourty movements 

■ FT-SE Actuaries 35 0 um 

r 1227.8 123&0 

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pT-S E SraMO aP ^ S/iav2 13 SXra FT- SE 100 31 / 12/80 IOOOlOO ASOtner 31/124^100000 

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FT-SE MU 250 . _ J ^cr^i»rtit^360fix«a»»^^ y^^ y^ ^ ^.^. ^ M atfo c ro rtRi ea .oTh»l n^ l Wt» «l8>oac De>M n(a»UH>Bd<GnodDBlTO 

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Hogg up 
on HSBC 
purchase 


Bid speculation in insurance 
broker Hogg Group sent the 
shares racing 24 ahead to 165p, 
in trade of I.lm. after an 
announcement that a subsid- 
iary of international banking 
group HSBC bad taken a 6 per 
cent stake. Hogg advised share- 
holders to take no action. 

News of the move took the 
market by surprise and came a 
da; after Hogg reported halved 
profits to £6.01m, and reduced 
its dividend. The company’s 
shares have been in the dol- 
drums since January when it 
surprised the market with a 
profits warning. 

The general view among 
market watchers was that the 
HSBC move was the first strike 
ahAflri of a full bid and analysts 
quickly moved to work out a 
possible price. 

One analyst said: “There is 
no reason for this move other 
than for a bid. There is syn- 
ergy with HSBC’s insurance 
interests and Hogg would also 
fit well with several of Midland 
Bank's operations. Sharehold- 
ers will have to be made an 
offer of at least 2l0p a 
share.” 

Another analyst said: “The 
manag ement have lost credibil- 
ity and the major share holders 
are unhappy. These are the cir- 
cumstances of a bid.” 

fa an otherwise quiet bank- 
ing sector, shares in HSBC 
firmed a penny to 739p. 

Redland strong 

Building materials group 
Redland was one of the best 
performing stocks among 
FT-SE 100 constituents after 
analysts upgraded profit expec- 
tations following the release of 
better than anticipated full- 
year figures. 

The group reported profits of 
£278 3m, against a range of 
forecasts between £260m and 
£27Qm, with the results fol- 
lowed by a bullish presentation 
from the board. 

At the day’s best, the shares 
were up 25 but came off the top 
with the market to finish 15 up 
539p on balance, after hefty 
trade of 7.3m. 


NEW HIGHS AND 
LOWS FOR 1993/94 

NBWHMtan. 

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Mr Simon Brown at Strauss 
Turnbull raised bis forecast by 
Einm to stasm and believes the 
stock to be undervalued, 
“given the Steetley acquisition 
two years ago together with 
the high quality of the assets 
and the management" 

Mr Mike Betts at Goldman 
Sachs, who has been negative 
on the stock over the last few 
months, raised his estimate by 
ream to raaftm and moved the 
stock from a sell to a hold 
recommendation. 

He said: “The stock will per- 
form well in a weak market as 
the yield will underpin the 
shares” 

Media and publishing group 
Pearson retreated sharply after 
announcing an agreed 5462m 
offer for Software Toolworks, a 
US software publisher. Some 
analysts expressed concern 
over both the price being paid 
and the strategic logic of the 
move. 

Pearson shares slippped by 
26 to 641p, the biggest feller in 
the FT-SE 100. 

There was other takeover 
activity in the media sector. 
Capital Radio set the radio 
broadcasting sector alight with 
the £32.8m agreed offer for 


Southern Radio. Capital shares 
jumped 21 to 4l8p, while 
Southern surged 25 to U8p, 3p 
above the offer price. The 
move excited other radio 
shares, with Chiltem gaming 
11 to 163p, GWR Group 37 to 
8S5p and Metro Radio 10 to 
349p. 

Advertising agency Saatchi 
& Saatchi appeared to have 
resolved its boardroom differ- 
ences with a statement that 
the chief executive and chair- 
man would both be keeping 
their current roles. The shares 
responded by slipping a half- 
penny to 135%p, with one ana- 
lyst commenting that the deal 
felled to resolve the problem 
over the future direction of the 
company. 

Software group Unipalm 
made its expected strong 
debut, the shares coming to 
the market at lOOp and finish- 
ing the day at 136p. 

Capital Shopping, the prop- 
erty group which came to the 
market on Wednesday at 230p, 
had another weak day along 
with the stiffing sentiment in 
the the sector. The shares 
slipped a farther 2 to 206p and 
gave rise to fears for other 
forthcoming property flota- 
tions, which were priced prior 
to the sector’s recent bout of 
weakness. Rugby Estates is 
rumoured to have had its origi- 
nal issue price cut by some SO 
per emit prior to coming to the 
market toe week after next. 

A weak performance over- 
night by Wall Street impacted 
on several stocks. Reuters fell 
back 26 to 1960p. Glaxo was off 
10 before recovering to close a 
net 4 off SOOp. mid ICI fell 18 to 
789p. 

firm gilts, continued hopes 
of a rate cut and positive sen- 
timent over early payment of 
bills by consumers avoiding 
VAT helped the electricity sec- 
tor. Among the better perform- 
ers, Eastern gained 14 to &75p, 
Yorkshire 13 to 651p and Man- 
web 16 to 738p. 

Great Universal Stores con- 
tinued to attract attention, the 
shares gaining 16 to 607p. 
There are rumours that the 
company is planning to spend 
a £ibn buying back a chunk of 
its shares. 

Kingfisher was again buoyed 
by this week’s buying recom- 
mendations from several bro- 
kers and the shares added 8 to 
577p. 

At the start of the busy 
Easter period for DIY groups, 


■ CHIEF PRICE CHANGES 
THURSDAY 

London (Pence) 


Capital Radio 
Chfitsm Radio 
Corporate Seivs 
GWR 
Norbain 
Redland 
Smith (WH) A 
Southern Radio 
Taylor Woodrow 

Falls 


418 

163 

48 

895 

349 

539 

533 

118 

159 


21 

11 

2 

37 

23 

15 

12 

25 

5 


ACT 

169 

_ 

5 

Caradon 

363 

- 

11 

Cater Alien 

535 

_ 

11 

Clarkson (H) 

87 

— 

8 

Danka Business 

324 

— 

13 

Harrisons & Croa 

197 

- 

8 

Hepworth 

391 

- 

15 

Home Counties 

135 

- 

5 

M & G Group 

963 

- 

20 

OMI Inti 

51 

— 

216 

Pearson 

641 

- 

26 

Ptx>to-Me Inti 

235 

- 

20 


WH Smith gained 12 to 533p on 
hopes for its restructuring pro- 
posals for Do It All, due after 
the break. 

Nervous trading in British 
Airways ahead of US commit- 
tal proceedings instigated by 
Virgin Atlantic, left the shares 
trailing 8Y, to 404%p, after 
trade of 3.4m. 

Aero-engine group 
Rolls-Royce recovered from 
recent weakness gaining 6‘A to 
181 Vi. on volume of 7.2m. Also 
recovering was Inchcape, 
which reported poor figures 
earlier this week. The shares 
put on 2 to 515p. 

Taylor Woodrow continued 
to benefit from its recent 
favourable figures and the 
shares put on another 5 to 
159p. 

The rest of the building 
materials stocks followed the 
market lower. Hep worths shed 
15 to 391p, while Harrisons & 
Crasffeld lost 8 to 197p, follow- 
ing a cautious note from Nat- 
West Securities. 

Building products and secu- 
rity printing group Caradon 
which reported improved fig- 
ures earlier this week, was also 
the subject of a cautious note 
from NatWest Securities. The 
shares fell 11 to 363p. after Nat- 
West said that "...we would 
prefer to rate RMC. Marley, 
Rugby and Blue Circle more 
highly since they have owned 
for some time the operations 
that will deliver the antici- 
pated performance." 



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FINANCIAL TIMES WEEKEND APRIL 2/APRIL 3 1994 














































































































































































































































































































































































































































WORLD STOCK MARKETS 


- . V'- ■ ' - ::T :::./. ftfand . ... •.* "jjpio . ■ 

.:• ^ Local termo • ' .' V "••'.••'•V ' '.V-". * T'; 




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■"■DoSar terms 





-J.?; • ■ )'■ : ^ ' " ■• '' • ' ' ~ 

££.?* : ■■■■ ■ : V J~‘i : .- ‘4* V ! » " M»r . > v i»* ••’•!•“ Jan 



94 Mar Jn : 'S4 Mar Jffli ■£*. Mar -. Jan 9«. Mar 4an 64 Mar Jan ' 94 ' Mar 


...„i . — ifr- — 1-70 

94 '. Afar •. '. . Jan. M' .Mar 


America 



EUROPE 


fights back after Italy piles on the post-election euphoria 
heavy morning deficit 


l" jSg Street 

- pS blue-chip stocks ended with 
r> modest gains on Thursday 
after another buffeting from an 
.L.. unstable bond market, writes 
; Frank McOurty in New York. 
The Dow Jones Industrial 
Average dosed 9.22 better at 
3,636.97, after fighting back 

- r-from a 67-point deficit at mid- 

Ttnoming. Hie final push intn 
. . positive territory came wily 
. about an hour before the close, 
as a burst of program-guided 
buying, coinciding with the 
- .end of trading in the first quar- 

- ter, lifted the bellwether- index 

- - by about SO points. 

^ ^ -The more broadly based 
^Standard & Poor’s 500 . also 
- . reversed course dining the Bes- 
son. ft climbed back from a six 
' point decline to end (L21 better 
at 445.7$ but declining issues 
..".outnumbered advances by 
1,532- to 738. 

- - For a second consecutive. 

day, activity was hectic, as 
: ” ‘portfolio managers sought to 
' ' square posi turns before their 
j" books dosed for the quarter. 

. 'NYSE ; volume reached 398m 
shares, topping the previous 
. - day’s level of 390m. The Ameri- 
: . ; "can SE composite ended 2.43 
lower at 443.11, and the Nasdaq 
^composite down L45 at 743.46. 

; " It was an appropriate end to 

ASIA PACIFIC 


a week of turmoil. After a net 
loos of 147 points since Mon- 
. day’s opening, confidence was 
in short supply when investors 
began the last session before 
the Easter three^day holiday. 

Share prices were already 
slipping by mid-morning, when 
the Chicago Association of Pur- 
chasing Management released 
its March index of business 
activity. The data were 
received badly. Not only did 
the index indicate a overall 
surge of activity in the region, 
but more importantly for the 
inflation-sensitive bond 
market, the report’s prices-paid 
component showed a big 
rise. 

to response Treasury prices, 
especially on the long end of 
the yield curve, dropped pre- 
cipitously, triggering frenzied 
selling in stocks. Within, an 
hour, however, share prices' 
stabilised amid a crosscurrent 
of piogramdrtven. trades. 

As the day progressed, buy- 
ers finally trickled back mto 
the Treasury market, tempted 
by low prices. In equities, 
bargain hunters snapped up 
some of Dow components bat- 
tered earlier in the week. Cat- 
erpillar recovered $3% to $112 
and Allied Signal $2% to $38%. 
JP Morgan gained $2% to $62%. 
McDonald’s $1 to $5654 and IBM 
$l;t0-$54L- .•••.' 


The Dow transportation 
index, hammered over the past 
week, slipped a further 331 to 
1,635.19. Airline stocks held up 
well, but trucking issues were 
weak, with the expiration of a 
pivotal labour contract only 
hours away and fe»?fcg between 
union representatives and 
TrmT\flgeftiBnf stalled. 

On the Nasdaq, Microsoft 
improved $1% and Intel gained 
$ZK to $67%. But Pyramid 
Technology sank $3% to 7 % 
after a profits warning. 


Canada 

Toronto stocks pulled out of 
annHiw steep in late trad- 

ing and mifarf TTiirpri to posi- 
tive bias after faffing for six 
consecutive sessions. The TSE- 
300 composite farter ffatetewl a 
busy session 15.71 points 
highm- at 4 jo9JiR- Volume was 
80.44m shares valued at 
C$L0bn. 

Strang hank stocks, golds, a 
rebound in debt markets ami 
bargain-hunting combined to 
offer a late lift. The gold and 
saver index climbed by 233.46, 
or 12 per cent to 10,77881 after 
a solid rally in gold prices. 
Comes gold closed up a sharp 
US$5.70 at $39430 per ounce, 
after bouncing off a two-and-a- 
hah-month high ctf $39&50. 


Nikkei in modest recovery 
Thursday's setback 



Tokyo 


A sharp rise in the yen hurt 
share prices on Thursday, but 
the Nikkei regained some 
ground yesterday on buying by 
dealers an d individuals, writes 
Emiko Terazono m Tokyo. 

: The Nikkei 225 index, which 
plunged 44738, or 23 per cent, 
to 19,111-92 on Thursday, 
finned yesterday by 16534 to 
19,277.16, after a low of 
19,161.63 and a high of 
1937638. 

The 225 was down 23 per 

- rent on the week. Wednesday’s 
foil on Wafi Street and fears 

- over mounting -USJapan ten- 
'stone ’ oyer trade, which 
depressed investors’’ confi- 
dence, subsided as the New 
York stock market regained 
some ground overnight. 

The Topfx Index of alT first 

- section stocks, winch fell 2531 
to 1,56821 Thursday, coded up 
737 to 137108, while the Nik- 
kei 300 rose 138 to 287J1 fid- 

; lowing a 536 point dedine the 
previous day. Volume was 
230m shares, against 305m. 
Garners led losers by 643 to 361 
'with 160 unchanged. 

Analysis expect the current 
volatility in share prices to 

- continue . .due to the oncer- 
-- tainty of yen movements 

against the dollar, and turmoil 
; cm the political front 


; On _fhe_ trading floor, mobile 
phone related issues were 
higher. Kenwood, the most 
active Issue of the day, rose Y6 
to Y996. 

Fuji Photo FQm fall Y90 to 
YL200 and Ebmica lost YB to 
Y630 on a preliminary decision 
by the US to impose antidump- 
ing dnfl pg on their p ro du cts. 

In Osaka, the OSE average, 
which tea 254.78 to 21,49530 cm 
Thursday, rose 60.85 to 
21.556J5 in volume of 15.1m 
stores. . 

Roundup 

The region’s markets were 
upset by the sharp fan an Wan 
Street on .Wednesday. ManOa 
was dosed on Thursday and 
Friday. Seoul, Taiwan, Kuala . 
Lumpur a»d Bangkok were 
open on Friday, Taiwan react- 
ing most strongly to the Dow's 
late recovery on Thursday. 

BUNG KQNG’s losses were 
trimmed by a late round of 
buying as news that La Ba- 
shing's Chenng Kang Group 
had bought a large site at a 
government land auction was 
seen as a vote of confid e nc e . 

The Hang Seng index fin- 
ished 202:30 down at 9,02981, 
down 22 per cent on the day 
and the week. Turnover 
remained scant at HK$451bn. 

Hongkong Land, 10 cents 
highpr at HK$2260, bucked the 


downward trend. AUSTRALIA 
saw its sixth straight fall, to its 
lowest since December 1993. 
The AH Ordinaries index lost 
3930 at 2.C63J down 4.6 per 
cent on the week, in turnover 
of A$395m. 

Blu e chips led the fall, with 
BHP down 48 cents, or 28 per 
cent; at A$16.48 and News Carp 
-25 cents at A$8J& 

TAIWAN fefl back 1.3 per 
cent on Thursday, but recov- 
ered most of that yesterday 
when the weighted index rose 
58.65 to 5,30887, OB per cent 
down on the week. Turnover 
was T$34bn. 

KUALA LUMPUR took its 
lead from Wall Street. Ignoring 
a Bank Negara's forecast of 
sustained economic growth 
and its smaBer-than-espected 
losses on foreign exchang e 
operations. The composite 
index, which lost 10.05 on 
Thursday, picked up 133. to 
952.72 yesterday, 18 per cent 
down cm the week. 

SINGAPORE was cautious 
about developments abroad 
and the Straits Times Indus- 
trial index ended 47.49 or 23 
pm- cent lower at 288090 lower 
hi quiet trading nhpeu i of tire 
tong weekend, little changed 
on the week. 

Karachi declined on profit- 
taking, the KSE HMl-store 
index foiling 2224 to 2540.46. 
Losers led gainers 112 to 237. 


Apart from extremes, 

reflecting inwnfrnicg rmthmrifnnw 

in Italy and dejection in 
Poland, bourses ended the first 
quarter of 1994 with a whim- 
per, writes Out Markets Staff. 

MILAN continued on its 
euphoric, post-election course, 
the BO index adding 27,45 or 4 
per cent to a 44 month high of 
722.99 and, on brokers esti- 
mates , adding another percent- 
age point to around 730 yester- 
day, taking the rise over the 
week to 9 per cent 

The market was hit by a 
flood of orders from domestic 
and foreign buyers, encouraged 
by the speed with which differ- 
ences were apparently being 
ironed out by Mr Silvio Berlus- 
coni and the right-wing alli- 
ance, committed to free market 
principles. 

Trading was extended on 
both days to cope with turn- 
over which surged on Thurs- 
day to an estimated record 
L2,000bn compared with the 
previous LMOObn peak set on 
January 31. 

In London, Robert Fleming 
Securities commented that the 
strong surge in support for the 
right wing has left the post- 
election scene much clearer 
rhsm hflri sflwwpri likely. 

Mr Marcus Grubb at Salo- 
mon Brothers, who has 
increased his end of year target 
for the Count miter from 750 to 
775, recommended that inves- 
tors increase their weightings. 
He accepted that volatility 
would increase if the newly- 
elected right-wing alliance 
experienced difficulties in 
forming a coalition govern- 
ment, but said this would be a 
buying opportunity. 

The insurance sector, an 
underperformer before this 
week, continued to power 
ahead on Thursday, on hopes 
that the new government 
would encourage private pen- 
sion schemes and reports that 
motor premiums will rise by 
7-13 per cent when Rome lifts 
controls in July. RAS rose 
LI.754 or 68 per cent to 
L28879, Fondiaria L776 or 62 
per cent to L13214. Toro L2.453 
or 88 per cent to L31233 and 
SA1 L1257 or 68 per cent to 
120895. The sector extended Its 
strengt h yester day. 

FRANKFURT blamed Wall 
Street again as the Dax index 
fell 14.42 to 2433.11, a fraction 
up on the week but down 58 
per cent on the first three 
months of this year. 

Turnover fell from DM78bn 
to DM&6bn. There was a sug- 
gestion of profit taking in cycli- 

SOUTH AFRICA 

Gold shares in Johannesburg 
recorded snail gains following 
a rise in the price of buffi an, 
while industrials moved lower 
as political tension continued. 
There was little direct reaction 
to the state of emergency 
declared in NataL 

The overall index rose 2 to 
4^37, industrials slipped 50 to 
5,644 and gold strengthened 18 
to 2,012. 

Be Beers put on Rl.25 to 
RIOS and Anglos R1 to R202. 
In golds, tnarginulg made some 
of the steepest gains. Dooms 
added 15 cents to R2.75 and 
Loraine 45 cents to R1525. 


gr _ actuaries world indices 


a,*** by 7I» ftanew *n«» U4, tkaman. 8^ A Ca 

SSSSsEto TT -_JWIBSaAy MARCH 31 1184 


ltd. in confemafan wBi the InsSUta al Acsuarfes and ihs Faa*y of tetusriw 


mb*raf *m 


US Day*# Pound 
Dotor Chatga Staring 
inda, . M mete* 



loot Local 
DM Currency * cHo 
Index Index on day 

18225 10682 141.01 164.14 

n* 180.78 117-56 157.10 15788 

05 18677 107-81 14A07 14M6 

-02 13016 B4J* 113.12 13048 

2842 4 17185 22086 ZS017 

141.82 9X23 123« -1^77 

06 17018 110-67 14790 15239 

_J? isw>7 sow mis mw 

-Z3 374.13 24332 325-18 

ng 78133 11T38 15733 17008 

^ SS 6063 7067 W74 

161£1 9B33 131^ 

_4L6 44048 2S&47 38282 

-13 2048.13 WW tlWO 7SMS4 

“ TSt « ■ 1 S 2 S 

19032 125.72 1B&01 19088 

304.H 197.73 28431 

232.70 151^0 202S2 ZSO« 

Saos 91.08 121-72 1448Z 

g nuna 13334 17320 237^9 

1B1J3 10018 14056 14t^ 

Igato 12232 18046 188^ 

1B139 117-97 157.84 161.g 


- 2.1 

00 

00 

01 

oo 

oo 

00 

-as 

-22 

-ijs 

4.4 

-1.7 

-2.S 

-IS 

-03 

07 

00 

-26 

-Ol 

00 

-06 

-06 

-02 

OO 


Gross 

Ofcr- 

VtaB 

05* 

099 

083 

257 

099 

091 

296 

US 

288 

SJX 

193 

082 

197 

067 

397 

3JS 

1J4 

191 

245 

4.10 

195 

196 
391 
291 


WSWCSQAY MARCH 30 1BB4 DOLLAR INDEX 

US Pound Local V Mr 

Doiv Staring Yen DM Cunncy 1S93«4 1993/94 ago 

Mn Index md«t indepc tod ex rtgh low (appro^ 


16593 
. 18034 
165.16 
1305B 

26279 

14056 

16032 

T37135 

38029 

18007 

8222 

15029 

45292 

209295 

194.78 

6039 

19234 

31248 

23017 

139.12 

20490 

10192 

188.10 

18190 


16693 

18078 

16S5B 

13097 


14090 
18B.73 
13799 
38422 
18392 
8042 
15067 
4S393 
209792 
18693 
.8295 
19290 
71025 
233.73 
13045 
20590 
161 Jl 
ISOS 

18204 


10056 

11797 

108XS 

8541 

17191 

9195 

11077. 

8995 

25074 

hots 

53.79 

10028 

29693 

138060 

12741 

4082 

12082 

20442 

15293 

91.01 

.13397 

10053 

12395 

11890 


14492 

15798 

144.15 

11085 

ooaaK 

12297 

147.78 

11088 

33493 

15079 

71.78 

13079 

89496 

182003 

16898 

5446 

18798 

272-73 

20390 

121.42 

17a74 

14079 

164.17 

15840 


167.43 

15792 

14091 

13029 

23017 

182.77 
15246 
17898 
38019 
190.73 
10038 
10028 
48830 

76807? 

187.78 
5S9? 

19088 
22898 
25074 
144.62 
23010 
14232 
188 JSS 
181-60 


168.15 

18S41 

17190 

14591 

275.79 
156.72 
18697 
14298 
50696 
gno.iB 

87.19 

16601 

62193 

2647.08 

20743 

7799 

20042 

37S9C 

28026 

155.79 
23002 
17896 
21496 
19694 


1OT119 
13663 
14192 
12146 
20495 
7890 
149.80 
10799 
25094 
15693 
5595 
12493 
28021 
1431.17 
16330 
4671 
15061 
22490 
161 99 
11693 
15897 
11790 
17032 
17691 


137.66 

14298 

15298 

T239S 

20495 

7690 

16009 

11497 

266.74 

16055 

5035 

12453 

28021 

1862.17 

16942 

4024 

15595 

22492 

17020 

131.46 

15027 

11897 

17491 

18494 


_15994 
„_16l96 

aieas- — JJJj} 

!ga-==s| 


«Sl49 1079 2 14068 15038 

20004 13140 176-® ^04.17 
•es m 10062 13048 10032 
iSS ISS 14057 127.19 
17830 11690 16498 17007 

na iSsi 9724 12994 

2%44 1507 7 20650 21791 
5^73 10594 14143 13039 

«3 «*S ££ 

tfi7EB ll&OO 146.66 14a® 
1^7 1602* 17448 

18796 10933 1*597 14844 


- 0.1 

-0l3 

-19 

- 1.1 

OlO 

0.1 

•22 

-19 

-0.7 

-0.7 

-02 


293 

198 

1.11 

198 

290 
235 

291 

199 
290 
2 26 
297 


164.73 

20191 

16148 

16Z.6S 

17843 

14843 

24292 

16360 

16878 

18830 

17880 


16613 

20190 

.16197 

16388 

17898 

U8J3 

24291 

76499 

167.17 

16871 

17824 


107 JB 
13199 
10594 
10642 
11672 
97.10 
16832 
10798 
10909 
110.10 
116J97 


143.77 

175J0 

14094 

14198 

15672 

12994 

21123 

14296 

14554 

14839 

16805 


16632 
-20498 
11032 
I2S56 
17803 
13794 
222.77 
131. 75 
14337 
14639 
17492 


17858 

22060 

16890 

17078 

192.73 

155.73 
29621 
17291 
17558 
17856 
19620 


14158 

15044 

129.03 

13490 

173.70 

12297 

17298 

13597 

14997 

15157 

164.42 


14399 

15044 

12993 

13490 

180.76 

12492 

17399 

13597 

14997 

15197 

16797 


A nudm* fan in prices on the 
Warsaw Stock Exchange saw 
almost all of its 23 listed 
stocks down by their maxi- 
mum 10 per cent daily limit on 
Thursday, when the WIG all- 
store Index fell by 1,510 l 2, or 
9A per cent to 14^363, writes 
Christopher Bobinski in War- 
saw 

The WIG has now fallen by 
30 per cent since March 8 
when the market first began to 
weaken. 

The latest decline, which 
started on Monday and which 
looks set to continue for a ses- 
sion or two after tote holiday, 
has taken 22 per cent off the 
market's total capitalisation - 


I08,497bn zlotys last Thors' 
day. 

The week's foil appears to 
have been triggered by foreign 
inves to r s anxious to take prof- 
its before the end of the quar- 
ter. These disposals completed 
a month or two daring which 
foreigners realised that aver- 
age p/e’s around the 85 mark 
were too good to last 

Local investors have been 
selling to accommodate a 
steady stream of new share 
offers and rights issues. This 
week , the Securities Commis- 
sion (KPW) said that it expec- 
ted to receive up to 20 new 
prospectuses for approval in 
the near future, was still 


examining nine and had 
received another three in the 
past few days. 

The Privatisation Ministry 
itself announced that it 
Intended to p ass ni ne prospec- 
tuses to the KPW before the 
break. These include the Polfa 
pharmaceuticals factory in 
Kutno, the Poznan Brewery, 
two major foreign trade enter- 
prises Rolimpex and Stalex- 
port as well as the Stomil 
Debica tyre factory. 

Four completed rights issues 
since January have raised 
1,413. 7bn zlotys while new 
share offers and rights issues 
currently on offer are worth a 
farther USSSJSbn zlotys. 


cals. In chemicals, Bayer 

annrmnrWI a costly fire and fell 

DM5.80 to DM573.20, but 
Hoechst also dropped, by 
DM5.40 to DM323.70. BMW 
escaped a general automotive 
downturn with a rise of DM150 
to DM82&S0. 

RWE, which has tod prob- 
lems in nuclear power genera- 
tion, fell another DM8 AO to 
DM438. Metallgesellschaft 
stretched its recovery to a 
third day. rising DM1L50 to 
DM208, but it was still the 
worst Dax performer of the 
first quarter with a foil of over 
25 per cent, said Mr Eckhard 
Frahm of Merck Finck in DOs- 
seldort 


Mr Frahm noted that cycli- 
cal had produced most of the 
good share price performances 
in tiie first quarto*, and finan- 
cials, or defensive stocks the 
worst The exception was the 
top performing stock, Luft- 
hansa, up by more 25 per 
cent on the quarter and by 
over 60 per cent over the past 
twelve months. The airline’s 
shares, be said, were a specular 
Hon on privatisation on attrac- 
tive toms before the German 
general election next October. 

PARIS was given a slight lift 
just before midday by a 10 
basis point cut in the Bank of 
France's intervention rate, 
bringing it down to &90 pm- 


FT-SE Actuaries Sfiare indices 


Mar 31 
flam Canges 


THE EUROPEAN SERIES 

open iaao 11.00 izoo iioo uoo ism at 


FT-a Biota* 100 
FT-SE Earns** 200 


141258 1405UO 1409.4 141108 141462 141943 141607 141670 
1431.94 1428.70 142627 142292 149640 144018 143944 144008 


M> 30 


M* 29 


to 28 


ur a 


Mr 24 


FT-SE Enrotat* 100 
FT-SE Eoatmck 200 
awtraaoesnwcfc 


141670 142155 14369 141240 142641 

14489 145257 140631 144855 14549 

M» - 142027; 200 - 1442.10 lomtstf ISO - 140671 30-14040 


cent But this was not suffi- 
cient to provide momentum for 
the rest of the session, and the 
CACAO index ended the day oft 
L93 at 2,08154. The index has 
slipped 2J> per cent over the 
week, mainly due to a sharp 
loss on Wednesday. Turnover 
was FFrLSbn. 

With activity restrained 
ahead of the long weekend hol- 
iday, investors concentrated on 
a number of companies report- 
ing results, rianai Flos gained 
FFr9 to FFr965 after announc- 
ing a gain in 1963 group prof- 
its. 

Eurotunnel, which said that 
its 1993 results would be avail- 
able on April 21, slipped 45 cen- 
times to FFr43.85. 

Saint-Louis, the food group, 
which announced after the 
close that it expected "signifi- 
cant” growth in 1994, ended the 
day u p FFr 7 at FFr1,715. 

AMSTERDAM regained the 
400 level in the AEX index, 
having dipped below it during 
early trading. 'Die irntwr dosed 
off 0.86 at 403B5, a foil on the 


week of 0.7 per cent 

There were some exceptions 
to the generally easier mood. 
Aegon, the insurance group, 
gained F1L30 to FI 94.60 after 
announcing better than expec- 
ted 1998 results, and prospects 
for improvement in 1994. 

BolsWessanen , the food and 
drinks group, added 70 cents to 
FI 41.40 as it annnnnnpd details 
o f its 1 993 dividend. 

ZURICH finished a quiet, 
shortened pre-holiday session 
earner but above the day’s lows 
after some buying emerged at 
the lower levels. The SMI index 
ended 19.7 down at 2.794B after 
a day’s low of 2,769.6, for a fell 
on the week of 1.3 per cent. 

Ciba continued to move 
against the trend in response 
to positive comment after this 
week’s results and presenta- 
tions to analysts. The regis- 
tered shares rose SFr5 to 
SFr882. Banks were weak on 
continuing worries about the 
outlook for US interest rates: 
UBS fell SFrl4 to SFrl.L83, SBC 
lost SFrS to SFr406 and CS 
Holding dipp ed SFrS to SFr625. 

ISTANBUL picked up more 
than 3 per cent an Thursday, 
and another 6.7 per cent yester- 
day as investors reacted to the 
sharp fell in overnight borrow- 
ing rates from 400 per cent to 
200 per cent in two days. The 
composite index closed at 
15,027.77. up 940.61 and by 11 
per cad on the week. 

ATHENS fell L6 per cent on 
Thursday, the general index 
testing the 1000-point support 
level for nearly two hours, but 
it recovered L3 per cent yester- 
day to close 13.04 higher at 
1.016A4-1- 

Written and edited by WHIiam 
Co ch r a ne. John Pitt and Michael 
Morgan 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


RISES AND PALLS 


Opta 


— cm we — 

«r M Oel H* M Oct 


Mot-LyaK 540 16% 29% 38% 8 29 37 
fS42 ) 589 2% 11% 10% 46 54% B9% 

240 J7% 28% 20% 3% 14% 18 
260 5% W 10% 12% 26% 30% 
SO 9% 12 13% 1 2% 4% 
60 2% 8 7% 4 7 9 


r2S3) 

ASM 

ran 


HMwvs 390 22% 34 41 4% 10% 25% 
1*404 > 428 8 18% 27 21 38% 42 

MM! 360 10% 32% 43 6% 18% 26% 

C371 I 390 8 10 20% 24 55% 43 

Soots 500 15 30% 30 9 26% 31% 

rSD4 1 550 1% 11 17% 48 80% 64 

BP 330 23 32% 38% 2% 10% 16 

1*349 ) 380 S 10 23% 15% 25 30 

M0ISN 140 6% 13% 17% 4 11% 14% 

) ISO 1% 8 9 20 24% 27 

Baa 500 37% 9 61 4 16% 21 

1*530 1 550 6% 25 34% 24% 40% 46 

Ota & w« 460 16% 33% - 11% 28 - 
r«S5 ) 47S BH 22% - 27 43% - 

Quarts 500 30% 44% S3 4% 23% 30% 
(-523 ) 590 S 19% 29% 3Z% 52% 50% 

DmiUn MO 29 40 S3 4 15% 25 
rsn ) 600 4 23 28 33 42% 52% 

W 75050% 7484% 4% 21 S3 

(*732 ) 800 18 44 85% 23 43 67 

OtfSte 55034% 47 68 5 23% 33 

COT) 600 7 23% 36 30 51 60% 

Land Saar BOO 33% 44 98% 8 10 22 

J-B20) 680 5% 15% 25% 25% 48 50 

IMaSS 300 21% 29% 37 3 13 15% 

(*407 ) 420 4% 18 22 16% 29 31 

fefWesi 420 44 98 65 2 9% 17 

(*458) 480 12% 33 41 13% 28 34% 

SsWbay 380 21% 32% 41% 4% 20% 24% 
(*375 ) 390 5% 18 20% 10% 37% 41% 

SMB Itans. 060 18% 38 47% 7% 19% 20% 
f658) 700 3 18 23% 43% 40 58 

Sttratmas 220 «% 19 24% 4 14% IS 
(*225) 240 2% 0% 18 17 25 27 


TtaHgar 

r® i 


noici 
Taxes 
1*724 ) 


88 915% - Z% 6% - 
07 4 T1 - 6% 11% - 

1000 28 00 78% 14% 25% 37% 
1050 6% 34% 52% 42 53 63% 
700 3438% 72 8 22% 37 

750 7% 3240% 32 47 62% 

■tag *00 ■" to *00 Mo» 


taMIM 

420 

40% 51% 

a 

4 12% 17% 

r«o) 

480 

14% 27% 36% 

19 30 35% 

Lsrfcraka 

180 

21 28 ! 

»% 

4% 8 14% 

1*194 ) 

200 

8 18 

23 

12 18 25 

acute 

330 

15 28 35% 

11 16% 24% 

(*3321 

360 

B 14 

23 

33 35% 42% 

Opto 


■tea to 

Dae 

to Sap Die 

Rsons 

no 

10% 23%: 

28% 

6% 11% 14% 

pan 

t» 

11% 18% 

22 

11 16% 21 

opto 


■to to 

HW 1 

to to to 

Bit too 

480 

50 Bi 

82 ' 

16% 31% 42% 

r«7) 

500 

28% 43% 

8434% 52 64 

bat tods 

420 

48% 48% 

54 

8 15% 23 

P4»> 

480 

13% 28% 

3427% 34 44% 

tflH 

360 

15 a 

a - 

izk 19% a 


{*361 ) 390 4 12% 18% 33 34 43% 

ratoon 390 14 25 30% 9 21 2S 

(*301 ] 420 4 12 17% 30 41 44% 

CatwyScb 453 W - - 7 - 

(■484) 433 6% - -30% - - 

Eastern Bee 650 37% S3K 82 10 29 37 

(•B73) 700 13% 27 38 38 57 84% 

0*ma 450 17 31 42 18% 29 98% 

C<66 ) 500 S 18 a 49 55% 61% 

EEC 280 21% * 38 3% 11 14% 

[-296 ) 300 8 IS 19 12 22 25 




. 

Ctes 

_ 

__ 

Pi* 

Opto 



to 

to 

MS} 

to to 

Hanson 

280 

15% 

28% 

a 

4 

9 13 

1*270 ) 

280 

8% 

11 

15% 

14 

19% 23% 

lasma 

120 

11% 

18 

» 

7 

12% 16% 

H22) 

130 

7 

14 

19 

13 

18 22% 

Lina tads 

180 

M% 

a : 

20% 

3% 

8% 13% 

PB3) 

200 

8% 

14% 

10 

13 

18 MH 

P&O 

650 

57% 

78' 

01% 

8 

10% 31% 

ns3i 

700 

24% 

45% 

81% 

27% 

42% 56% 

Potato 

130 

0% 

17: 

21% 

6 

12% 16% 

ns3) 

200 

3 

7% 

12% 

18 

0 29% 

ftudBDfcl 

300 

14. 

34% 20% 

9 

14 20% 

rsm) 

330 

3 

11% 

15 

30 

32% 37% 

m 

too 

42% 

87 

M 

17 

» 47 

1*822 ) 

850 

17% 

41% 

5B 

44 

S 71% 

tatted 

500 

45% 

5Z% 

06% 

9 

20 30% 

CS38 ) 

560 

12: 

25% 

38 

36 

45% 58 

Ttayad taaea 

260 

W% 

30 

a 

B% 

12 1B% 

rzn ) 

280 

0% 

19 

a 

17 

21% 29 

Tbico 

200 

17% 

23: 

28% 

5% 

9% 14% 

r2i4) 

220 

8 

13 

18% 

18% 

21 25% 

Vodtoe 

500 

32% 

50%I 

64% 

13% 

29% 37% 

«75) 

550 

imt 

25 

43 

43% 

SB B6 

WBann 

360 

32% 

a 

44 

6% 

11% 18% 

f38B) 

390 

12% 

21 

a 

19 

25% 31% 

Opto 


to 

-M 

OCt 

to 

M OCt 

BM 

100025%: 

51% 

a 

is% 

47 54% 

(*1001) 

1050 

7 

20 

48 

55 

0 83% 

VaamWt 

SOD 

am 

as 

48 

3% 

18% 24% 

COT) 

550 

4 

is: 

10% 

29 

48% 53% 

Opto 


to 

to 

to 

JU> 

to n* 

HbbBf tad 

460 

28%' 

42% 

47 

16% 

a 30 

f«4) 

500 

T1 

25 20% 

41%. 

48H5ZH 

tosnd 

3D 

6% 

BU 

9 

2 

3 4 

rw> 

35 

4 

8 

0% 

4 

5% 6% 

BartUjs 

500 

47% 

SI 

56% 

12% 

a 31 

fS22) 

550 

17 

31 

41 

37% ! 

51% 57 

Bn Cfedt 

300 

33% 

43 48% 

6% 

17 17% 

r32B) 

330 

18 

73 

ai 

23 

3ZH 32% 

Brtteb 6as 

300 

12% 

W% 

a 

18 

21 27 

rsm j 

330 

4 

B» 

18 

39 

40% 47 

Obsnt 

200 

« 

20 24% 

73* 

20 23 

ran) 

220 

8% 

12% 

17 

24%: 

33% a 

IMsdown 

in 

13%' 

[7% 29% 

8% 

12 13 

(-168) 

130 

4 

9 

12 

23 

a a 

Lorate 

140 

WH 

23 27% 

SH 

15% 17% 

f1«) 

in 

8 

« 

U 

20 

27 29% 

to Anar 

460 

25% 35% 

44 

3*; 

29% 35 

r<») 

500 

0% ' 

10% 

27 

49 : 

53% 59 

Seat PtaMr 

300 

30% 44% 

SB 

m 

18% 20% 

T413) 

420 

19% 

29 33% 

20% 

33 35% 

Sms 

110 

9% 

13 

14 

G 

7 B% 

Hi*) 

120 

s 

7 

9 

11% 

13% 14% 

Fata 

240 

22 

32 

33 

B 

13% 16% 

r2») 

260 

11% 

22 

23 

18 

24 27 

Tam* 

174 

12% 

_ 

- 

12% 

- - 

(174) 

193 

0% 

— 

— ; 

25% 

m — 

Thors m 

10K) 

56 

78 

91 

321 

61% 70 

poos 

1100 

31 

K 

67 1 

50% 81% 93% 

TSB 

200 

44% 

30 32% 

4% 

10% 12% 

(-215) 

220 

n% 

19 22% 

13%: 

KK 22% 

■fetes 

240 

17! 

13% 27% 

9% 

16 19 

r245 ) 

260 

8% 14% 

18 

22: 

28% 30% 

WAeme 

SO 

46% 

68 

77 

23: 

38% 46 

fS74 ) 

600 

23% 

44 

84 : 

2% 

36 75% 

Opimi 


to 

■M 

Oct 

to 

JM Oct 

ten 

SO. 

54% 

76 87% 

a%- 

17% 33% 

raej 

600 

17% 

46 50% 

is : 

»%5S% 

BBC 750 * 

700. 

54% 

88 

118 

io : 

37% 54% 

P38) 

750 

25 62% 

a 

30 

6279% 

ftsutoa 

I960 1 

51% 

10 

mi 

37% 

« T2Z 

P955 

20009% 

183 

148 1 

58% 

117 148 

Opta 


to 

to i 

to 1 

to. 

to to 

Mfrto* 

18Q 

0% 17% 

22 

8% 

14 16ft 

P«) 

200 

3% 

913% 

22 28% 30% 



On 

nmm 

Thursday 

Ada 

Sams 

Rfes 

)n the week 
FmB» 

S«n m 

British Funds 

64 

4 

6 

169 

96 

31 

Other Flxad Irttardsl 

4 

0 

11 

10 

1 

49 

Mineral Extraction 

30 

98 

77 

188 

332 

300 

Genoraf MaraAcnxes 

100 

256 

324 

446 

903 

1372 

Conauner Goods 

28 

73 

91 

147 

257 

364 

Senacss 

BO 

195 

283 

340 

623 

7,105 

UtBttas 

27 

12 

7 

87 

63 

34 

Financials 

47 

210 

123 

328 

619 

609 

Investment Trusts 

10 

296 

154 

193 

743 

904 

Oman 

11 

90 

45 

131 

269 

161 

Totals 

381 

1.243 

1,099 


3,606 

4.929 


QU busd on Oiaas aampBM Baud on Ida Usndon Sam SaMa. 

LONDON RECENT ISSUES: EQUITIES 


tarn AM Mkt 


Ctoae 


paW 

P 

cap 

C&tv) 

1994 

rtgn Low Stock 

prioe 

P 

4- 

Net 

On. 

Otv. Get 
cow. ytd 

F7E 

net 


FJ>. 

31 JO 

247 

241 Abtrus N Dawn C 

246 


- 

- 

- 

- 

IS 

FP. 

40 3 

142 

134 totted total 

135 

-1 

WN38 

2A 

33 

15D 

100 

FP. 

IIP 

SB 

85 Bororamaad fiw 

99 


“ 

- 

“ 

“ 

IBS 

FP. 

4483 

IS 

158 Baozar Homos 

100 


L5J0 

22 

3D 

14D 

- 

FP. 

945 

137 

133 Brigfttstone 

136 


L3.75 

12 

35 

30.6 

- 

FP. 

743.7 

200 

206 Capital Shop Ctra 

206 

-2 

Ufi-5 

a / 

3D 

406 

- 

FP- 

1220 

85 

61 Central Bad Gwdi 

61 

-1 

- 

- 

- 

- 

- 

FP. 

9JB2 {S7h 

287 Chesser Water 

£87 


t2 35P 

43 

&4 

9M 

- 

FP. 

190 

32S 

283 Coal Irwa Unto 

305 

+10 

- 

- 

- 

- 

_ 

FP. 

38P 

125 

125 Ccunly Snflr C 

125 


- 

- 

- 

- 

- 

FP. 

543 

12 

12 Dominion Energy 

12 


- 

- 

- 

- 

- 

FP. 

730 

225 

200 Ocmnlck Hunter 

224 


W4PS 

22 

£4 

24.1 

— 

FP. 

40-2 

IS 

96*2 EAiSmal Co’s C 

98*j 


- 

- 

- 

- 

- 

FP. 12200 

408 

485 F & C Inc Grwtti 

488 

-9 

- 

- 

- 

- 

— 

PP. 

12.0 

60 

43 F 4 C Private Eq 

48 


- 

- 

- 

- 

130 

FP. 

32-5 

IS 

130 Ftoaiat 

149 


R3J 

22 

2D 

19D 

_ 

FP. 2S31J0 £31b £21** ftaMn Rw 

E31>2 


Q28c 

- 

0-6 

- 

- 

FP. 

510 

IS 

IS Oarnnoro arit Inc 

103 


- 

- 

- 

- 

- 

FP. 

1065 

213 

208 Do Unite 

213 


“ 

- 

- 

“ 

170 

FP. 

855 

ITT 

140 Gobtaborougft Mfr 

148 


WN33 

ZB 

ZB 

18 J 

- 

FP. 

209 

113 

111 Qtupa Chaz Old 

112 


b- 

- 

- 

102 

- 

FP. 

1620 

190 

178 kopec 

190 

45 

- 

— 

— 

- 

81 

FP. 

834) 

82 

53 tael Fund 

54*4 

* 

“ 

- 

- 

- 

- 

FP. 

700 

110 

87 MAD 

87 

-14 

- 

- 

- 

“ 

260 

FP. 

2440 

256 

340 UcOonnaf Ml 

344 

-6 

W&2S 

23 

32 

17.1 

140 

FP. 

2280 

172 

IS MWand Indp N*w 

166 

-1 

WN2-8 

23 

2.1 

22.7 

100 

F.P. 

1125 

83 

SO Morgan 0 Lm Am 

SO 


- 

- 

- 

- 

- 

FP. 

508 

IK 

98 Newport 

98 


“ 

- 

“ 

- 

a 

FP. 

800 157 >2 

154 Nottingham 

154-2*2 

i&52 

1.8 

4 5 

15.1 


FP. 

SO 

22S 

218 Pasco 

223 

+4 

1536 

22 

3D 

102 

- 

FP. 

524 

200 

198 Ptoiriffai InO C 

IBS 


- 

- 

a- 

- 

100 

FP. 

SO 

103 

S3 Hobart tMsonan 

102 


S25 

ZB 

ai 

15^4 

- 

FP. 

1140 

SS 

480 Schroder UK Qwth 

469 

-1 

- 

— 

- 

- 

- 

FP. 

320 

148 

138 Trafflcnwter 

149 


- 

- 

- 

- 

too 

FP. 

Z7-5 

137 

100 United 

138 


b- 

- 

- 

- 

170 

FP. 

1002 

170 

161 WatahoniBS 

161 

-8 

M2 

15 

33 

17.4 

50 

FP. 

104 

77 

63 Waste Recjcftig 

64 


— 

- 

- 

28.1 

205 

FP. 

620 

220 

203 Wdlngtan 

220 

+1 

VK.17 

2D 

2D 

21D 

RKWTS OFFERS 








bsua 

Amoixtf Latest 





Closing 4a 1 - 

pifea 

paW Renin. 

1994 




price 


P 

*41 

data 

tflgh Low Stock 




P 




* IMertV Jake Pntitm ataai to 

baaed on cfcetog otter prices. 

Itactl 31. TOM Cta to CM ; 36,962 Cale 24576 
Puts 12476 


225 

N» 

9/5 

4Qi^m 

33pm Art 


33pm 


400 

NB 

15/4 

53pm 

34pm ASed Lyona us 


37pm 

-0 

55 

W 

IBM 

69pm 

42pm Goal kws Units 


45pm 

-28 

55 

w 

17/5 

26pm 

18pm DCS 


20pm 

-6 

0 

Ml 

IMS 

lam 

lObpm 

1pm fOunton 


1pm 


82 

Ml 

28/4 

Itjpm Hadtn Moctefan 


ibrnn 

-1 

260 

w 

4/5 

43pm 

23pm Hertya 


23pm 


25 

ra 

9/5 

2*zpm 

I'jpm Holes 


ibpm 


R400 

m 

Bfi 

33pm 

33pm Idata Cane 


33pm 


282 

ra 

13® 

10pm 

7pm Persimmon 


7pm 


280 

M 

20/4 

18pm 

8pm Proteus ms 


6pm 

-fl 

60 

w 

as 

10pm 

aim ftwdtoat 


9pm 


85 

115 

M 

M 

26/5 

11/5 

12pm 

Wapiti 

4pm Btehantaon Watt 
llijpm Setter Eng 


ton 

twm 


72 

Nl 

lift 

11pm 

$2pRi arts 


9 1 2pm 


ISO 

W 

56 

iSpm 

7pm Linton 


7pm 

S 

30 

m 

5/5 

llpm 

2pm Upmn &Sta 


2pm 


FINANCIAL. TMES EQUTTY INDICES 






Mar 31 

Mar 30 Mar 29 Mar SB Mar 26 

Yr ago 

*W) 

low 

Ordnary Share 

2439-2 

2445.5 

2470.1 247BD 2473.1 

2223-1 

271X8 

2124.7 

OnLte. ytaH 

3D2 

MO 

3.74 3.74 3.74 

4.43 

4JS2. 

043 

EtaikyU. ««« 

5-21 

5.19 

5.09 SD8 5.09 

6.19 

M8 

a 62 

P/E nck> net 

2QDS 

2094 

21 32 21.39 2135 

2005 

33-43 

19.40 

PIE ratio no 

21.73 

21A2 

2223 2234 2230 

1&63 

3080 

18.14 


FT GOLD MINES INDEX 



to %cK 
31 ■ Off 

to to Yatt 

30 29 age 

to te 

yirt % 

BMWfc 
■01 Lmr 

GrttemWnpq 

289044 *12 

20tlXZ 2B77J6 1S7.16 

1 X 2 

236740 126030 

■ Bagforttattcac 

Alta (13 

A 0 o**n 

North Aoctani) 

265406 +1D 
2426.44 -3.1 
180016 422 

2627D3 275564 16&99 
2503.19 25S753 1373X1 
1781 jOB 1905.12 123554 

511 

1.48 

052 

344080 146827 
30(869 I3B55Z 
203865 1177X2 


■ftr 10034K OnSaoy Share Mb she* «wnptatfc» high 271 16 2flBW; kw 404 264BM0 
FT Onteay ton Wax base data 1/7/35. 

Orxftny Share hourty ch a ng n 

Qptn ftco moo mo iaao iau» iood i&oo moo w# Low 
2431 jB 2429.1 24300 2423.6 24355 2*38.4 24448 2441.2 2444.0 244&B 24235 
Mar 31 tor 90 Mar 28 74a/ 28 My2S Yrego 


nrtn*"f * 88-17 ■ r ‘„ rn anurfto Ltote 1967 


Cenrirt. Km R u andM Iteaa iMtad 1004. 

SSeeSi taartos mm nartbar «4 aanesntea. Bates U9 DcBaa. Baea VatlM! 100050 31/1202. 
PMKStaGrOrt Mhn MW Star 31: SOU.-toxtoSK rUpaMK Vaaragee 1186 7 tolia) 


SEAQ bargains 

40601 46,348 

41/243 

37^420 

45D89 

41519 

EqJty tonswar (Em)t 

- 17562 

151 2D 

11612 

2206.1 

13119 

EcpAy batgalnsf 

- 55D56 

50.787 

44^68 

S0D68 

52124 

Sharaa iraded (rrttt 

674.1 

641.1 

4774 

720% 

B43£ 































































££K. .csBgGgKKc.sfiBss.c.eEseeeucesicKe, .ese. ce.es , CEcsesKsejeeSs ssiseseHcsseEKBess s, , 
































































M FERGUSON 
W ENTERPRIS 


W ENTERPRISES 

Number 1 In phxnbtng nppfy - USA. 


FINANCIAL TIMES 

Weekend April 2/April 3 1994 



Bank hopes to raise FFr3 5bn from disposals . Russia 


Credit Lyonnais plans 
to speed up asset sales 


By Mice Rawsthom in Paris 


Credit Lyonnais, the troubled 
french bank which is the subject 
of a FFr44.9bn ($7J8bn) govern- 
ment-backed rescue package, 
plans to accelerate Its asset sales 
by selling up to FFr35bn of Its 
industrial holdings, according to 
Mr Jean Peyrelevade, chairman. 

Mr Peyrelevade, who was 
drafted into Credit Lyonnais by 
the Balladur government in 
November to orchestrate the res- 
cue and prepare the bank for pri- 
vatisation, had already 
announced plans to sell FFr20bn 
of assets by the end of next year. 

But he now intends to make 
additional disposals worth up to 
FFrlSbn, be said in an interview 
with the Financial Times. 

"We plan to sell FFr20bn of 
assets over the nest two years, 
but we won't stop there," he said. 
“Our portfolio is now worth 
between FFrSObn and FFrSSbn. 
We'll continue to sell assets until 
it has been reduced to around 
FFr20bn.” 

Credit Lyonnais amassed a 
large number of industrial invest- 
ments as part of the aggressive 
expansion pursued by Mr Jem- 
Yves Haberer. its chairman for 
five years until Mr Peyrelevade's 
arrival- The Haberer regime is 


The French government yesterday 
announced that it was postponing 
the privatisation of Banque Hervet, 
the merflum- sized banking group, 
and that it was providing a cspitd 
injection of FFr750m (£85.91 m) to 
try to stabilise its fttances, writes 
Alice Rawsthom. 

The bank was badly affected by 
the recession and yesterday 
reported a FFrlJ2bn loss for 1993, 
prompting the state injection and 
the decision to delay its sale. 

Hervet, which is 5&41 per cent 
state-owned, was scheduled for 
sale on a private basis later this 
year. Credit Commercial de 
France, the retaff banking group 
that owns 34 per cent of Hervet, 
was seen as the ffloefiest buyer. 


now the subject of an official 
inquiry in France after the 
announcement last month of the 
rescue deal and of the group's 

FFr6 _9bn net loss for 1393. 

Most of Credit Lyonnais’s 
investments are minority stakes 
in corporate clients. The focus for 
the disposal programme is expec- 
ted to be on its holdings in pri- 
vate sector companies - such as 
Bouygues and Navigation MIxte 
in construction, and Christian 
Dior in luxury goods. The group 
has recently sold minority hold- 


ings in the Union des Assureurs 
F&igrales insurance group and 
TF1 television station However, 
It is expected to hold on to its 
investments in other statecon- 
t rolled companies - including 
Usinor-Sacilor, the steel maker, 
and Aerospatiale, the aero space 
group - as these holdings would 
be more difficult to seiL 
Mr Peyrelevade said he did not 
object in principle to a commer- 
cial bank adopting the role of a 
German-style industrial bank. 
He stressed, however, that Credit 
Lyonnais was not in a financial 
position to afford such a strategy. 

“It’s not that I don't believe in 
the concept of an industrial bank 
taking minority stakes in his cli- 
ents," he said. “But they must be 
good investments with growth 
potential and the bank must be 
able to afford it** 

One of Credit Lyonnais’s most 
complex disposals will be that of 
MGM, the stricken Hollywood 
movie studio that It must, under 
US banking regulations, sell by 
mid-1997. Mr Peyrelevade said he 
had been approached by a num- 
ber of potential purchasers for 
the studio, which is the subject of 
legal suits. 


agrees to 
private 
ownership 
of farmland 


By John Lloyd In Moscow 


Paribas recovery, Page 13 
Renault profits fall. Page 13 


Barings freezes Peps business 
as price war weakens returns 


By Peggy HoWnger 


Barings said yesterday it would 
stop taking applications for per- 
sonal equity plans, the first indi- 
cation of a possible sbake-up in 
the £3bn-a-year Pep market. 

Baring Global Fund Managers, 
the merchant bank’s asset man- 
aging arm, is putting its Pep 
business on hold pending a 
review of its long-term retail 
operations. Peps, introduced in 
1989, are popular tax shelters for 
private investors. Up to £6,000 a 
year can be invested free of capi- 
tal gains or income tax. A further 
£3.000 can be invested tax-free in 
singlecompany Peps. 

Barings is a relatively minor 
provider of Peps, which represent 
just £15m of its £3bn in managed 
assets. Other groups in the 
highly fragmented market may 
soon follow its example, as 
returns from Peps begin to 
weaken. Increasing regulation 


and an intense price war have 
substantially raised the costs of 
participation tor groups without 
a large market share. 

Earlier this year M&G, the 
UK's largest Pep provider, aban- 
doned the initial charge on Its 
managed income fond. Most 
other Pep providers have fol- 
lowed M&G with some form of 
discount. 

Mr Nick Wells, Barings product 
development manager, said the 
bank's relatively minor position 
in the Pep market and its reluc- 
tance to discount had prompted 
the decision to stop taking appli- 
cations from next Tuesday, the 
end of the 1993-94 tax year. 

The bank had also decided that 
the Pep market would become 
even more difficult In future. 
Competition would become 
increasingly cut-throat as oppor- 
tunities for discounting devel- 
oped in the transfer mar- 
ket, which allows plan-hold- 


ers to switch managers. 

Barings has not yet decided 
whether to withdraw completely 
from Peps. A decision would be 
announced after the review was 
completed, Mr Wells said. 

The extension of unit trust 
allowances and, more recently, 
the fall in interest rates have 
sharply increased the popularity 
of Peps. The market, which has 
more than doubled since 1992, Is 
expected to reach £5 bn this year. 

However, returns have been 
diluted by the price war. One 
leading provider estimated it 
would now take up to five years 
to make a profit in the new, more 
aggressive environment 

This made it difficult for niche 
specialists such as Barings to 
remain competitive, he said. "It 
is difficult to stay in this market 
unless you are prepared to enter 
it in full/ he said. “We have the 
benefit of volume and that is an 
important factor." 


Companies may have to honour rival tickets 


Contained from Page 1 


want to extend “interavailabil- 
ity” to cover Saver and Super- 
saver discount fares. Season and 
foil-fare tickets would be valid 
across the network under the 
original rules. 

But the cheapest fares. Apex 


tickets which must be bought at 
least seven days in advance and 
which apply to a particular train, 
would not be covered by the new 
arrangement. However, . Mr 
Salmon estimates that more than 
80 per cent of journeys would 
now be included. 

Fears about this issue were 


fanned earlier this year with the 
publication of an internal BR 
memo by a senior manager. The 
document described the govern- 
ment’s promise that rail 
companies would honour each 
other's tickets as "a bit of a con” 
because discounted fares were 
excluded. 


The R ussian cabinet has agreed 
a plan allowing state and collec- 
tive farms to auction off land to 
their workers as private prop- 
erty - the first time Russians 
will be able to acquire title to 
land in the country's history. 

This potentially; massive shift 
in property rights in the agricul- 
| taral sector was agreed by minis- 
ters on Thursday. The decree 
i law, which does not have to be 
approved by parliament, will be 
signed by Mr Victor Chernomyr- 
din, the prime minister, when he 
returns from a trip to Hungary 
next week. 

The decision follows a year- 
long pilot project developed 
between the International 
Finance Corporation - an am of 
the World Bank - and the 
administration of the Nizhny 
Novgorod region north east of 
Moscow. Mr Chernomyrdin sur- 
prised both radicals and conser- 
vatives last month when he 
praised the Nizhny project 

The decree instructs local 
authorities to introduce the sys- 
tem pioneered in Nizhny 
throughout their areas, though 
state and collective farms will be 
able to choose whether or not to 
take it np. 

Under the system, farm work- 
ers and pensioners each receive a 
voucher entitling them to a part 
of tiie land and machinery, they 
are encouraged to form compa- 
nies with other workers to bid 
for, and create, viable farm 
units. The Nizhny experiment 
shows that most workers do 
form co-operative e n t er prises. 

Nizhny will remain central to 
the wider scheme, receiving a 
large slice of the initial RbslSbn 
(about £&6m) set aside for the 
programme to develop a centre 
for the training of managers and 
workers of privatised farms. 

the programme is particularly 
significant because of the conser- 
vative leadership of the agricul- 
tural sector, represented in the 
cabinet by Mr Alexander Zaver- 
yukha, the deputy prime minis- 
ter, and Mr Victor Khlystun, the 
agricultural minis ter, these min- 
isters have already signed the 
decree with Mr Anatoly Chubais, 
the radical deputy premia' for 
privatisation, who is likely to 
take overall charge of the pro- 
gramme. 

Although parliamentary 
approval is not needed for the 
decree itself, it will probably be 
required for the detailed legisla- 
tion . Opposition among the depu- 
ties may make its passage uncer- 
tain, hut support from 
conservative ministers will help, 
as wifi signs of its popularity 
with farm workers. 

Before the Communist revolu- 
tion, legal title to all land was 
vested tax the Tsar. The seizure of 
land from peasants for collectiv- 
isation during the late 1920s and 
early 19306 caused widespread 
starvation which killed millions 
of people. 


FT WEATHER GUIDE 


Europe today 


It win be very unsettled In the UK, Benelux, 
southern Scandinavia, Germany and northern 
France. Widespread blustery showers will 
bring hall, sleet and thunder but the sun will 
still break through at times. Winds will be 
near gale-force in the North Sea area while 
toe coasts of northern Ireland and Scotland 
will experience gale-force north-westerlies. 
Thera will be rain and very little sun in central 
France and the Alps. Heavy rain Is likely In 
toe northern Balkans. Northern Spain will 
have morning showers while toe south will be 
sunny and breezy. Eastern Mediterranean 
regions wHI have the best conditions. 






.".TO 












Five-day forecast 

The UK will have a wet and windy Easter with 
rain on Sunday and frequent showers on 
Monday. Benelux, Germany, France and toe 
Alps will be showery on Sunday with snow 
on higher ground, but there will also be 
periods of SLffi. On Monday most areas wiH 
have outbreaks of rain. Showers will lighten 
In the northern Mediterranean area and in 
southern Spain there will be abundant 
sunshine. After Easter the weather wiH remain 
unsettled and cool in much of Europe. 


" 44 y -iAi 


my 











WhMsp—d in 




TODAY’S TEMPERATURES 


Situation 12 GUT. r<amperatum3 maxtnum (or day. fiarecssfe by Metao Consult ot the Netherlands 


Abu Dhabi 

Accra 

Algiers 

Amsterdam 

Athens 

O. Area 

8. ham 

Bangkok 

Barcelona 

Beifog 


Maxknum Belfast 
Celsius Belgrade 
tor 31 Bertn 
tor 32 Bermuda 
shower 18 Bogota 
hail g Bombay 
for 21 Brussels 
tor 25 Budapest 
tad 9 Ghaean 
tor 35 Cairo 
tor 17 Cape Town 
tor 18 Caracas 


8 Cardiff 
IB Chicago 

12 Cologne 
21 D‘ Salaam 
19 Dakar 

32 Dallas 
8 DeW 

13 DteXri 
8 Dl tom 

24 Dubrovnik 
28 Edinburgh 

25 Faro 


Latest technology in flying: the A340 


( 3 ) Lufthansa 

German Airlines 


8 Frankfimt 
1< Geneva 

a Gfcratov 
28 Glasgow 

25 Hamburg 

26 HefesnW 
34 Hong Kong 
31 Honolulu 

S Istanbul 
17 Jeraey 

9 Ksactf 
21 Kuwait 

L Angeles 
LaaPtfmas 
Lima 
Laban 
London 
Luxboug 
Lyon 
Madeira 
Madrid 
Majorca 


10 

Marta 

tap 

22 

Rio 

tor 

27 

8 

Mancfwter 

shower 

8 

Riyadh 

fair 

30 

72. 

Man3a 

cloudy 

32 

Rome 

flair 

17 

8 

Melbourne 

Mr 

22 

S. Freco 

ms- 

21 

9 

Mexico City 

cloudy 

24 

SooU 

fat 

18 

8 

Miami 

Ml 

27 

Singapore 

fat 

31 

29 

Man 

sun 

19 

Stockholm 

shevnr 

to 

25 

Montreal 

snow 

3 

Sbasboug 

shower 

10 

17 

Moscow 

dandy 

11 

Sydney 

shower 

20 

10 

ton** 

ratn 

10 

Tangier 

tor 

17 

S3 

Nairobi 

18# 

29 

Tel Aviv 

srai 

20 

25 

Naples 

tor 

18 

Tokyo 

Gftowor 

19 

25 

Nassau 

shower 

30 

Toronto 

snow 

1 

20 

New York 

daudy 

13 

Tunis 

tor 

20 

27 

Mee 

windy 

17 

Vancouver 

shower 

14 

18 

Mcosla 

sun 

21 

Venice 

shower 

16 

10 

Oslo 

shower 

8 

Vienna 

cloudy 

13 

7 

Paris 

shower 

10 

Warsaw 

cfoudy 

13 

12 

Perth 

fair 

30 

Washington 

sin 

18 

18 

Prague 

cloudy 

12 

Wellington 

shower 

13 

16 

Rangoon 

sun 

35 

Winnipeg 

sun 

3 

18 

Reytyavfc 

snow 

1 

2i*ich 

tor 

9 


THE LEX COLUMN 


Wall Street 


Judging by the price fells of recent 
days, fear has a head start over greed 
in the minds of US investors at pres- 
ent Wall Street fells on Mexican 
assassinations, Wall Street fells on 
trade worries with Japan. Behind the 
excuses. Wall Street fells because once 
1 the prop of 6 per cent bond yields is 
1 removed, the yield on shares looks 
very meagre indeed. The vertigo and 
price fells are made worse by the 
heavy flow of speculative money Into 
capital markets last year, which is 
now starting to reverse. In the face of 
such psychology, this year's earnings 
recovery is small consolation. 

It may take some stability in the US 
Treasury bond market to restore confi- 
dence to equit ies . The fear that short 
term interest rates may rise above 5 
per cent next year in an effort to bring 
growth down to a non-inflationary 
rate has sparked a rise in bond yields 
to 7 per cent. Yesterday's employment 
data, showing the strongest monthly 
job creation since 1967, reinforce the 
impression of strong economic growth. 
While rising inflation is not yet obvi- 
ous, a lack of surplus capacity means 
that it may not be far away. 

Once the scale of the problem is 
better gauged, a gap between short 
and long interest rates of 2 percentage 
points should be perfectly sustainable. 
Before then, however, uncertainty and 
natural over-reaction may farce long 
rates higher. US equities may well suf- 
fer too, since there is little incentive to 
buy and speculative hedge funds are 
being forced to sell. There is funda- 
mental value in shares, but until the 
immediate p res su res start to moder- 
ate, that may pass unnoticed. 


FT-SE index: 3086.4 (-6.0) 


RerfJand: 


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FT-SF-A Bu8c6pg Material tMex r' 

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1980 HQ - .91 - 92 • ' 98 . 34 
SoucKFCOrapWa .-* * 


afising Steetley's French businesses. 
There is mileage left in improving its 
pricing strategy in the UK, too. An 

fuMHima) hrw>n,c win CODSB from Red- 

land^ tax juggling, ensuring UK and 
French profits are effectively earned 
tax-free. 

Even so, Redland’s earnings may 
prove lacklustre set against its UK 
peers because of the spread of its 
operations and the profusion of 
shares. The prospects for dividend 
increases are also comparatively dulL 
Redland was one of the few building 
materials companies not to have cot 
its dividend during recession. That 
lias left it with an uncomfortably high 
pay-out ratio. But in today's market 
conditions, Redland’s dividend yield of 
almost 6 p er rwit matroc its shares 
look more defensible Bum most. 


These are indeed up 72 per centbut 
there 'appears to .be only touted scope, 
for reducing - them this year to com- 
pensate, for any toss of momentmn at 
the 'operating level Deutsche itself has 
repeatedly warned that had debts may 
continue even when economic recov- 
ery stalls, and it is not as if the 1993 
provisions are particularly high.in the . 
first place. At DML3bn they are not 
quite iper cent.of total group lending. 

In contrast to British banks, which ■ 
out-performed the local equity market 
strongly as interest rates came down, 
Deutsche' under-performed the Dax 
inriPv by some 12 per cent over the 
past year. Despite the 10 per cent 
increase in its dividend, there seems 
scant prospect of that trend reversing 
itself; especially since financial mar- 
ket turmoil makes trading profits, 
uncertain. 


Redland 


Redland makes a convincing case 
that its German wonder story will con- 
tinue for a w hite in the west 
may soften next year as tax subsidies 
for housing decline, but Redland 
achieved the notable feat of wafcfag 
more money in east Germany than in 
the UK last year. That part of the 
German market, at least, should keep 
sales piarehlug Strongly a hand - 
although there must be longer term 
doubts over whether a 24 per cent 
return on sales will eventually invite 
fiercer competition. 

Whatever happens in Germany, Red- 
land should still benefit from an 
upturn in volumes and prices in the 
UK and France, where it makes oper- 
ating margins of just 4 per cent on 
turnover of almost £900m. Redland has 
still to reap the full benefits of ration- 


Deutsche Bank 

There is a refreshing candour about 
Deutsche Bank’s admission that it 
does not expect much by way of earn- 
ings increase this year. Last year’s 23 
per cent jump in group net profit owed 
much to sperial factors that wifi not 
easily be repeated. These include not 
only a 76 per cent increase in earnings 
from proprietary trading, but also a 
substantially higher contribution from 
commission income which reflected 
the general buoyancy of ffnanrfal mar - 
kets. While net interest income rose 7 
per cent, margins fell slightly. The 
bank expects the squeeze to continue 
in 1991 

Classic continental accounting prac- 
tice might suggest that Deutsche has 
chosen to smooth the large 1993 
increase in operating profit by adding 
heavily to its loan loss provisions. 


Life insurance 

This week Norwich Union -became 
the latest life insurer to concede - 
under pressure from Its regulator - 
that its sales force is not up to scratch. 
But while the regulator’s more robust 
attitude should be welcomed, 
improved training and supervision 
may not, In themselves, stop life insur- 
ance being mis-sold. Whatever their 
training, commission-based salesmen 
have a powerful economic Incentive to 
favour certain products. 

Full disclosure of commissions from 
norf year may chang e that, since the 
true costs of buying life insurance will 
be clearer. Spreading commissions 
through the life of a product rather 
than charging up-front would be earn 
way of making the costs easier for 
customers to swallow. Such level 
charging would give salesmen an 
incentive to sell policies which are 
likely to run their full course. Surren- 
der values should also improve, unless 
companies Introduce exit charges or 
penalties to weight the risk of early 
surrender back in their favour. 

The snag is that the transition to 
level charging would squeeze life com- • 
ponies and independent financial 
advisers which rely on up-front 
commissions to meet working capital 
requirements. That points to a wider 
range of commission structures, and 
perhaps more customer choice about 
how to pay. Whichever system 
emerges, though, life insurers must 
find a way of selling more policies 
which run to maturity. Otherwise the 
regulator is sure to ask whether 
long-term life and pensions products 
should be sold on commission at all. 


11 : 59 pm 


Tues 5 April 


YOUR LAST CHANCE TO INVEST IN A 
1993/94 LOW-COST SELF-SELECT PEP 
WITH KILLIK & CO 

We will be accepting personal applications at all KiUik & Co shop-offices 
up to 11:59pm on Tuesday 5 April. 

You don't need to make investment decisions immediately, so long as we 
have your subscription - up to £6,000 (General PEP), up to £3,000 (Single 
Company PEP) before the end of the tax year. Application forms available 
at all our offices. Please bring your cheque book and NI number. 

Key benefits of Self-Select PLUS: NO management charges, NO initial 
charges, NO charge when you transfer your existing plan to us - PLUS 
Investment advice whether or not you invest You pay only for the work 
we actually do: for your deals (1.65% - min £40) and reclaiming tax on 
your behalf (£7 -50 on each dividend). 

Fax for any of the following today : Just dial direct the relevant 
number from a telephone linked to a fax machine - on answer press 
the fax start button. 

071-649 1061 General PEP Application form (5 pages) 

071-649 1062 Single Company PEP Application form (5 pages) 
071-649 1063 Rate Card (2 pages) 

071-649 1064 How to make the most of your PEPS (4 pages) 

Or phone us on 071-371 0900 and tell us what you need. - 


43 Cadogan Street 
London SW3 2QJ 
071-589 1577 


24/23 Manchester Square 
London WlM SAP 
071-2242050 


2a Devonshire Hill 
London NW3 INR 
071-431 6314 


KILLIK & Co 

STOCKBROKERS 


35 Harwood Road 
London SW6 4QF 
071-371 0900 


FT24 I 

SPA Regd. address: 45 Cadosan St. SW3 201^/j 


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