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■ ' -. f- Zj rr 


Weekend FT "A Cl Con ^ ssions °f a 

World Cup writer 


imide taction II 



Plus Italy v Brazil preview 

* ; Page I and Pago XH 



Galicia: 
Spain's 
seafood locker 



OutmlufwhivUh: 
Alan Dershountz, 
celebrity lawyer : 

PB«aXWrt 



/gVojk grgu^S 

Winning battles but 
not the honours 


Page 2 


FINANCIAL TIMES 


Faroes's Busiress Uevvspape?' 



Companies in this issue 


ASH 

10 investmem Company 

10 

Bakyreldk Gold 

10 Lloyds Bank 

24 

Binghamton Simulator 

10 Moergate low Trust 

10 

C&G 

24 NEC 

11 

Cardifl Property 

ID Pelican 

10 

Geselsa 

10 Price Waterhouse 

10 

Charterhouse 

10 Quadrant 

10 

eLffly 

11 Railtrack 

24 

First Choice Estates 

10 Sanyo EleCTiC 

11 

General Consolidated 

10 Telefonica 

11 

Glaxo 

10 Texas Instruments 

11 

Hartstone 

10 Thom EM) 

15. 10 

Hoechst 

11 US West 

11 

Huntingdon 

1C Wittarn Low 

15 


For customer service and 
other general enquiries call: 


Frankfurt 

(69) 15685150 


WEEKEND JULY 16/JULY 17 1994 


Rabin and Hussein 
set date for US 
summit meeting 

The Mideast peace process was given fresh impetus 
by the announcement that Israeli prime minister 
Yitzhak Rabin is to meet King Hussein of Jordan 
in Washington on July 25. in the first public sum- 
mit between the Israeli and Jordanian leaders. 
Israel also made overtures to Syria on the eve 
of a peace shuttle by US secretary of state Warren 
Christopher. Page 3 

IIS West appeared poised to become the first 
of the six US regional telephone companies to 
enter the US cable television business, after agree- 
ing to buy two Atlanta-based cable systems for 
$1.2bn in cash and shares. Page 11 

Trade gap shock for Japan: Japan's trade 
gap widened by 14.8 per cent to $11.35bn in the 
year to June, a serious blow to Tokyo's belief 
that the surplus had peaked. Page 4 

£5m Sutton breaks football transfer record 

Norwich City striker 
Chris Sutton, 21, (left) 
ended weeks of specula- 
tion when he finally 
signed for Blackburn 
Rovers for £5m ($7 .6m), 
a British football transfer 
record. The previous 
record fee of £4m was 
paid last year by Rangers 
to Dundee United for 
Duncan Ferguson. 
Confessions of a tempo- 
rary sports writer. Wkd t World Cup, Wkd XU 

Washington hits at Haiti: A White House 
national security official accused Haiti's military 
leaders of ruling through a reign of terror. No 
sign of comfort in the south. Page 9 

Texas Instruments, US semiconductor and 
electronics manufacturer, reported record second- 
quarter results, driven by strong sales of semicon- 
ductor products which pushed net revenues up 
to S2.5bn. Page 11 

Blair vow on political shake-up: UK Labour 
leadership favourite Tony Blair committed the 
party to parliamentary reform, devolution and 
human rights legislation. Page 24; Straight talker. 
Page 6 

C&G hopeful: Cheltenham & Gloucester building 
society said it was confident it could devise a 
scheme to enable the takeover bid by Lloyds 
Bank to go ahead without recourse to an appeal- 
against last month's High Court judgment Page 
24 and Lex; Complex calculations. Page 7 

WTO headquarters: Geneva is expected to 
be chosen in preference to Bonn, as the site of 
the World Trade Organisation headquarters. A 
decision is due next week. Page 2 

Ulster ambush: Three police officers, a prisoner 
and a passing motorist were injured in an ambush 
an unmarked police car near Dungannon, Northern 
Ireland. 

NHS reform praised: The UK government's 
reforms of the National Health Service have 
increased its efficiency and are producing “increas- 
ingly encouraging results 1 ', the Organisation 
for Economic Co-operation and Development 
said. Page 7 

Si bn Thai deal: A joint venture of Germany's 
Siemens group and Italian-Thai Development, 
the leading Thai construction company, was 
awarded a contract worth Sl.lbn to build what 
is expected to be Bangkok's first urban rail system. 
Page 4 

N Korea seen as threat: Japan's Defence 
Agency said North Korea’s weapons programme 
was a “serious destabilising factor” in east Asian 
security. Page 4 

Aide in *sackfng’ row: The UK government 
was embroiled in a dispute with a junior ministerial 
aide Tim Devlin about whether he had resigned 
or been sacked “for general ineffectiveness". 

Page 7 

Plea to law lords: Former Nissan UK managing 
director Michael Hunt was given leave to appeal 
to the UK House of Lords against his conviction 
of involvement in a £55m (S83.tim) corporation 
tax fraud. Hunt was jailed for eight years in July 
last year. 

Jupiter's big bang: A series of explosions 
each bigger than the force of the world’s entire 
nuclear arsenal is expected tonight as giant frag- 
ments of a comet crash into Jupiter. 


Luxembourg PM approved by consensus despite misgivings of MEPs 


Santer is chosen 
to succeed Delors 
as Brussels chief 


By Uonel Barber and Emma 
Tucker in Brussels 

European Union leaders last 
night settled on Mr Jacques San- 
ter, the prime minister of Luxem- 
bourg, as a compromise choice to 
succeed Mr Jacques Delors as 
president of the European Com- 
mission. 

Mr Santer, a 57-year-old Chris- 
tian Democrat, was approved by 
consensus at a special summit in 
Brussels, despite misgivings in 
the European Parliament and lin- 
gering resentment about the UK 
veto last month of Mr Jean-Luc 
Dehaene, the Belgian premier 
and one-time favourite. 

At a news conference, Mr San- 
ter stressed that he had not 
sought the job of president, but 
felt obliged to come forward as a 
compromise candidate. “Just 
because someone comes from a 
small country, that does not 
mean they cannot become a big 
president," he said. 

Chancellor Helmut Kohl of Ger- 
many, a Mend of Mr Santeris for 
20 years, said his appointment 
would not halt the process of 
European integration laid down 
by the Maastricht treaty. “We see 
no majority In the EU for stop- 
ping or going back." 


Mr John Major, UK prime min- 
ister. described Mr Santer as a 
wise choice who was committed 
to free trade, free markets, decen- 
tralisation and enlargement of 
the Union. “He is well able to 
reconcile the conflicting views 
around the European table.” 

The appointment of the 
low-profile Luxembourg^ who 
has served as prime minister 
since 1984 confirms the recent 

Brussels’ beguiling new 
burgermeister Page 8 

trend toward devolving power 
from the Commission in Brussels 
to the member states - a process 
underlined by Mr Kohl who said 
he did not see a centralised Euro- 
pean state emerging in future. 

During his five-year term. Mr 
Santer will nevertheless have an 
important role to play in prepar- 
ing for the 1996 Maastricht 
review conference, consolidating 
the enlargement of the Union to 
the Nordic and Alpine states and 
laying the groundwork for Euro- 
pean monetary union and expan- 
sion of membership to the new 
democracies of Central Europe. 

Mr Santer is the second Luxem- 
bourger to rise to the top execu- 


tive post Mr Gaston Thorn, the 
former prime minister of the 
Grand Duchy, preceded Mr 
Delors between 1980-84. A finance 
expert, Mr Santer played a useful 
role in preparing the 1986 Euro- 
pean Single Act and the 1991 
Maas tricht treaty. 

His elevation marks the end of 
a dramatic contest to succeed Mr 
Delors, who started as a rela- 
tively little known international 
politician, but who became the 
driving force behind the Single 
European Act, the European Eco- 
nomic Area and the project of the 
Maastricht treaty to create a sin- 
gle European currency by the 
end of the century. 

Mr Santer emerged as a com- 
promise after betterJmown can- 
didates were either blocked or 
declined to come forward. 

Germany, which holds the rota- 
ting presidency of the EU, called 
yesterday's special summit to 
break the deadlock and avoid a 
crisis with the European Parlia- 
ment, which under the Maas- 
tricht treaty has the power to 
block the appointment 

Mr Kohl courted leading MEPs 
before the summit and at the 
news conference he stressed on 
several occasions the importance 
of the parliament as an institu- 



Mr Jacques Santer arriving for yesterday’s EU summit, where he was 
elected the next president of the European Commission 

turn alongside the member states 
and Commission. As a result, 

MEP s seem unlikely to exercise a 
veto at their inaugural session in 
Strasbourg next week, but they 
may complain about the selection 
process. 

Mr Dehaene raised this issue 


before the summit, criticising the 
UK veto as bad for Europe and 
warning that the EU cocdd not 
operate cm the basis of vetoes. 
“This will certainly leave 
marks it is not about bilateral 
or personal relations, but about 
the f unctioning of the Union.” 


Firmer US 
bonds help 
lift dollar 


By Phffip Gawith 

Firmer US bond markets 
yesterday helped the dollar con- 
tinue its cautious recovery on 
foreign exchanges. 

Earlier in the week, the US cur- 
rency had fallen to fresh lows 
against both the yen and the 
D-Mark after last weekend's deci- 
sion by the Group of Seven lead- 
ing industrial nations not to 
announce any programme of dol- 
lar support. 


Dollar 


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8 jam : is - 'a Jure* nr • 'e ;' Ji«4"''. : is ti 


The improved inflationary out- 
look in the US supported the 
bond market and spread to the 
UK, where the Bank of F.ng3and 
yesterday announced a long- 
dated conventional gilt auction 
after a period of shorter term. 


nan-conventional funding. 

Share prices in the UK were 
also firmer, with the FT-SE 100 
index closing 24*4 points higher 
at 3,074.8, bringing the total gam 
for the week to 112.4 points. 

The dollar closed neariy a pfen- 


nig firmer in London against the 
D-Mark at D Ml .5558 from 
DM1.5457 on Thursday. It dosed 
s lightly lower against the yen at 
7978050 from Y98.2& 

Continued on Page 24 


Editorial Comment — Page 8 

Currencies, Page 13; London 
stocks. Rage 15; World stocks 
Page 21 and Weekend II 


DS523A/ 


Italy’s PM 
defends 
release of 
corruption 
suspects 

By Andrew HD ki Milan 

The w«Kan authorities yesterday 
began releasing bribery and cor- 
mp Hon suspects from prison, as 
a controversial new decree limit- 
ing magistrates' use of preven- 
tive detenti on took effect. 

Mr Silvio Berlusconi, prime 
■minis ter, angrily defended the 
two-day-old decree after attacks 
by opposition politicians, magis- 
trates end the press. He said in 
Rome that the decree would “pre- 
vent tbg country tur ning into a 
police state”. 

Italy's best-known investiga- 
ting magistrates - the Milan- 
based mam puSte (“dean hands”) 
team - said on Thursday they 
would resign from the anti-cor- 
ruption unit in protest Magis- 
trates in Genoa yesterday also 
refused to handle cases affected 
by the decree, which bans the use 
of preventive detention in bribery 
and corruption investigations. 

It is estimated that the decree 
could affect up to 2,000 people in 
preventive detention. Most of 
than, including a dozen top Ital- 
ian executives for whom arrest 
warra nts were issued on Thurs- 
day, will be put under house 
arrest instead. 

Mr Bettino Craxi. former 
socialist prime minister under 
suspicion in a number of corrup- 
tion investigations, will also face 
house arrest, rather than impris- 
onment, if he returns from 
self-imposed exile in Tunisia. 

One of the first suspects 
released yesterday, was the wife 
of Mr Duflio PoggjoUni, a former 
-health-ministry - official -who 
allegedly received bribes from six 
drug companies in exchange for 
favours. She said she had experi- 
enced “eight barbaric months” in 
a Neapolitan prison. 

The decree needs parliamen- 
tary support to survive and feces 
a rough ride from tb£ opposition 
and from Mr Berlusconi's coali- 
tion partners, the regionalist 
Northern League. The justice and 
interior ministers both suggested 
yesterday that it could be 
amended. 

“We don’t issue decrees that 
are valid for eternity and cannot 
be discussed,” said Mr Alfredo 


Confirmed on Page 24 
Berlusconf s run of luck, Page 2 


Revenue to publish inspectors 9 
secret tax assessment manuals 


By Andrew Jack 

The Inland Revenue is to make 
public the secret tax m anual s 
used by its inspectors as the 
basis for their assessments, as 
part of the drive for open govern- 
ment. 

The manuals, which provide 
detailed guidance to inspectors 
on how to handle all personal 
and corporate tax matters, have 
always been jealously guarded 
internal documents. 

Their appearance could make a 
substantial difference to the way 
taxpayers and their professional 
advisers plan their tax affairs. 

The Revenue confirmed yester- 
day that it would publish the 
manuals, but said the details 
were still being finaBsed. 

A timetable for publication had 


still to be decided, the Revenue 
said. It is believed that the manu- 
als will be made public over the 
□ext two years as the n*f<Hng 
editions are revised. 

The move comes in the wake of 
the code of practice on govern- 
ment information which became 
effective in April this year. It 
reqnires departments to publish 
information, give reasons for 
administrative decisions and 
respond to requests for informa- 
tion. 

Tax professionals yesterday 
welcomed the decision. Some, 
however, expressed scepticism 
over whether the most sensitive 
information on the interpretation 
or tax and tactical advice to 
inspectors would be disclosed- 

The Revenue said it would 
reserve the right to withhold 


information it considered to be 
prejudicial to the administration 
or collection of tax, In line with 
special exemptions to the code. 

Information likely to be with- 
held incl u des legal opinions com- 
missioned internally, advice pro- 
vided by officials to ministers 
and details of tax avoidance and 
evasion schemes which come to 
its notice. 

Previously, some out-of-date 
copies of the inspectors’ manuals 
have found their way into the 
offices of the larger accountancy 
firms, generally when they have 
hired ex-Revenue officials. 

Mr Roger White, bead of tax at 
accountants KPMG Peat Mar- 
wick, said: “This is undoubtedly 
a major step in the right direc- 
tion. i welcome the Idea of mak- 
ing the manuals public.” 


STOCK MARKET INDICES 


FT-SE 100: 3,0748 

YHd 4.06 

FT-SE Eurotrack 100. 1.3400 
FT-SE-A AD -Share 1JS3 2S 

MkJurf 20,771X16 

New Yoric lunchtime 
D«w Jonas Ind Ava .3.744X54 
SSP Composite 463.19 


■ LONDON MONEY 

3-mo (ntortnnfc SA% 

Liffe long gffl ft* .. Sep 103*2 


_i4 

-B.7 

_2i 

-24 


(♦24.4) 

{♦■11.693 

(♦0.7%) 

(♦52.11) 

1+1-29) 

(-022) 


15*0%) 
i.Sep 104) 


Federal Funds; 

— 4u% 

3-mo Tress Bfls: Yid 4355% 

Lcrg Snm: 


Yreki 

7jgncr. 

■ NORTH SEA OIL (Arans) 

Brant 15-day (Sepl_ 

— *17.73 

■ GOLD 


New Yorh Cemex 


S386.4 

Londen 

--S38&2 


(1733) 


'384.4) 

(3S3.15) 


New York lureterne: 

S 1.8875 

London: 

S 1.5586 (1.564) 

DM 24248 (2.4174) 

FPr &32ia (8.2854) 

SFr 24448 (2.0394) 

Y 1821585(153.705) 

£ Index 793 (793) 


■ DOLLAR 

New York lunchtime: 
DM 1.581 
FFr 434325 
SFr 1.3155 

Y WL25 
London: 

DM 1JSE8 (1-5457) 
FFr 543B3 (5-2970) 
SFr 1MZ (1-304) 

Y 87.906 (9628) 

$ Index 62J5 

Tokyo YUM 


CONTENTS 


tUHiuaxul News — 

UK News 

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© THE FINANCIAL TIMES LIMITED 1994 No 32,420 Week No 28 


LONDON ■ PARIS - FRANKFURT ■ NEW YORK - TOKYO 


Morgan Grenfell. 

Your First Choice in japan. 


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JAPAN BOLUT 

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FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


NEWS: INTERNATIONAL 


German state 
minority rule 
coalition deal 


Health services abuse funds, regions fail to pay taxes 

Russia pinpoints revenue loss 


By Michael Lmdemann In Bonn 

The Social Democratic party 
(SPD) yesterday agreed a 
minority coalition with the 
left-wing Green party in the 
eastern German state of 
Saxouy-Anhalt, a risky venture 
whose survival depends on the 
support of the Party of Demo- 
cratic Socialism, the successor 
to the East German Commu- 
nist party. 

The coalition has been seized 
on by the SPD as a chance to 
prove that it is serious about 
government It also provides 
further evidence that the SPD 
may agree to work with the 
Green party to secure a major- 
ity after the October federal 
parliamentary elections. Mr 
Rudolf Scharping, the SPD 
leader, has denied all such sug- 
gestions, but leading members 
of his party have argued that a 
pre-election commitment to a 
so-called red-green coalition 
will secure a larger majority 
for tbe two parties. 

Meanwhile the Christian 
Democratic Union (CDU) and 
its more right-wing Bavarian 
sister party, the Christian 
Social Union (CSU), have been 
falling over themselves to pres- 
ent the arrangement with the 
former communists in Saxony- 
Anhalt as ultimate treachery. 

The SPD have tired back, 
pointing out that the CDU has 
agreed countless coalitions 
with the PDS at local council 
level in eastern Germany and 
is hypocritical to suggest that 
arrangements at state level are 
any different. 

The two would-be coalition 
partners yesterday presented a 
70-page document, negotiated 
over the last 10 days, which 
outlines the coalition agree- 
ment. The SPD will have sis 
ministers, the Greens will take 
over the Environment Minis- 
try. and independent techno- 
crats are being sought for the 


three remaining post. 

“The longest road starts with 
the first step," was the cau- 
tious verdict with which Mr 
Rein hard Hoppner, the SPD 
state premier designate, 
greeted the landmark decision. 
He is likely to be elected pre- 
mier on July 21. 

Only days before the election 
on June 26. Mr HOppner said 
he would not consider any 
deals with the PDS. preferring 
instead a so-called grand coali- 
tion with the CDU, which has 
36 seats in the state parlia- 
ment, one more than the SPD. 

However, a day after the 
election victory the SPD lead- 
ership in Bonn were able to 
convince Mr Hdppner that a 
coalition with the Greens, who 
have five seats, and horse-trad- 
ing with the 21-seat PDS, how- 
ever risky, was the only 
chance the SPD ha d of proving 
that it was determined to win 
the October elections. 

Recent opinion polls have 
seen the SPD lose its earlier 
lead over the CDU and many 
observers suggest the party 
will be hard pushed to recover 
lost ground before the October 
elections. 

The PDS has achieved 
impressive returns in state and 
communal elections in eastern 
Germany, backed by voters 
angry about economic reforms, 
and it is likely to manage to 
get back into the Bundestag, or 
lower house of parliament in 
the October elections. 

leading politicians in Thu- 
ringia, which neighbours 
Saxony- Anhalt to the south 
and is still a bastion of CDU 
support, sought to play down 
the spill-over effect of the red- 
green coalition. They argued 
that the differing economic and 
political development of the 
five eastern states meant it 
was unlikely the Saxony- 
Anhait coalition would be 
duplicated. 


By Leyia Boulton bi Moscow 

Glaring abuses of state funds by health 
services and the withholding of taxes by a 
handful of big Russian regions were sin- 
gled out yesterday as reasons for Russia's 
inability to honour expenditure commit- 
ments. 

A finance Ministry report presented at a 
cabinet meeting to review the state of the 
economy said toe government had simply 
slashed expenditure to make up for the r 
failure to collect 40 per cent of tax receipts 
in the first half of this year. That figure in 
itself is encouraging given tbe fact that 
only 30 per cent of taxes were collected in 
the first quarter of 1994. 

One example of abuses of funds the gov- 
ernment identified was that of medical 
institutions which had spent the money 


not on health care but on financing pri- 
vate business activities or buying cars 
instead of medical equipment 

Tatarstan and Bashkortostan, two 
semi-independent republics within the 
Russian Federation, were the biggest non- 
payers of taxes among tbe regions, 
together withholding more than RbslQQbu, 
compared to the budget's total projected 
revenues of Rbsl24,000bn. 

The credibility of the government's own 
promises to combine reforms with a fight 
against abuses has come into question fol- 
lowing Its recent decision not to abolish 
quotas on oil exports as promised from 
July 1. This crucial foreign trade reform, 
which would have increased tax revenues 
and removed a big source of corruption, 
was postponed until at least January 1995 
without explanation. 


But reformers within the government 
and the president's administration blame 
the government's vulnerability to power- 
ful vested interests, including the handful 
of companies currently enjoying exclusive 
export rights and those of officials who 
receive bribes in return for the allocation 
of quotas. 

“This was too juicy a morsel to give up 
for certain interest groups." explains Pro- 
fessor Yevgeny Yasin, chief economic ana- 
lyst for President Boris Yeltsin. 

At yesterday’s meeting - missed by Mr 
Yeltsin, who was said to be suffering from 
a cold - Prime Minister Victor Chernomyr- 
din trumpeted the government's achieve- 
ment in driving inflation down to 6 per 
cent in June, although officials have 
warned that it is likely to rise to 
double-digit figures by the autumn. 


Emu unlikely 
this century, 
says Vranitzky 


\ 


.,0 V 









Mm 

fir S3 


t» m . 






‘f 


1 

feS/A -: . 


5*22 




Two Greek Cypriot women write messages on a banner in Nicosia’s main square yesterday, the 20th anniversary of the coup that 
prompted a Turkish invasion and partition of the island. The text, a quotation from an anonymous poem, reads: “Seal this cloth with 
toe wrath of your soul until the sun rises again over our enslaved land.” ap 


By David Marsh 
European Editor 

The European Union's project 
for forging economic and mon- 
etary union (Emu) by tbe end 
of toe century will be “very 
bard to fulfil”, accenting to Mr 
Franz Vranitzky. the Austrian 
chancellor. 

Speaking during a visit to 
London this week, Mr Vran- 
itzky took a cautious tine on 
the prospect of deepening polit- 
ical and monetary integration 
in the EU, which Austria is 
due to join on January 1. 

Mr Vranitzky. whose country 
closely follows Germany in its 
monetary policies, said the EU 
should wait until after 1999 to 
establish Emu with a relatively 
large number of member 
states. This would avoid the 
danger of a "two-track" Europe 

- a development that would 
emerge if Emu went ahead 
with a smaller group. 

He said the 1996 intergovern- 
mental conference planned to 
review the Maastricht treaty 
should discuss “a new institu- 
tional framework" for toe EU. 
But he indicated the practical 
consequences might be limited 
to a stronger role for the Euro- 
pean parliament and "more 
flexibility in decision-making''. 

Asked whether Austria's 
neutrality would allow it to 
join a common European secu- 
rity arrangement, he confirmed 
Austria’s interest in participat- 
ing in "a system of collective 
security" but made clear this 
would not necessarily entail a 
commitment to provide troops 
for any possible EU actions 
against "peace-breakers" in 
foreign conflicts. 

Austria would deride "case 
by case" whether support for 
EU security moves would 
involve the dispatch of troops 
or more "technical" measures 

- logistic support or help with 
arms supplies. 

Mr Vranitzky explained his 
caution about Emu partly by 


drawing attention to problems 
of “psychology" in replacing 
national currencies by a single 
European currency. "Austrians 
would definitely find it hard to 
see it [the schilling! eliminated 
in a short space of time,** be 
said. 

He added that this sentiment 
was similar to that seen in Ger- 
many and the UK about the 
possible replacement of the 
D-Mark or sterling. 

Ho said establishing a nw^ 
taiy union “that deserves the 
description" would require "a 
minimum number of ccuq. 
tries” as participants. 

"I would prefer a larger man- 
ber of countries. Otherwise ng 
could arrive at a kind of two 
track integration process, 
which would not be an ophna] 
development." 

The number of counties 
likely to fulfil the Emu eco- 
nomic convergence criteria 
laid down by the Maastricht 
treaty was likely to remain 
rather low by the end of the 
century. 

As a result, he said, “I really 
do think it will be necessary to 
talk about monetary onirm 
later than 1999." 

Mr Vranitzky made his com- 
ments even though the Maas- 
tricht treaty rules out any mfa> 
irnum number of EU states in 
1999 as participants in mone- 
tary union. In theory, this 
means that as few as two or 
three EU members could 
launch Emu from that date, 
provided they fulfil the conver- 
gence criteria. 

Austria is one of the few 
European countries which cur- 
rently come close to meeting 
all the criteria on inflation, 
interest rates, public sector 
debt and budget deficits. 
Although Austria does not par- 
ticipate in the European Mone- 
tary System, the schilling's 
central exchange rate against 
the D-Mark has remained 
unchanged since the system 
started in 1979. ; 


Berlusconi’s long run 
of luck hit by dispute 


I Back from the dead and aiming high 

Bundeswehr successes revive Volker Rube’s ambitions, reports Quentin Peel 


In the shadow of Italy’s 
participation in toe World Cop 
final, Mr Silvio Berlusconi, the 
prime minister, has become 
involved in a dangerous con- 
frontation between the execu- 
tive and toe judiciary. 

The disagreement centres on 
a decree that drastically 
reduces toe scope of investiga- 
ting magistrates to use preven- 
tive detention of those sus- 
pected in cases of corruption. 

The outcome could for toe 
first time dent Mr Berlusconi’s 
remarkable run of popularity 
since he took office two 
months ago. The institutional 
conflict also risks causing 1 
sharp divisions among Mr Ber- 
lusconi's allies in his right- 
wing coalition. At the same 
time it could side-track the 
government's attention from 
formulating economic policy 
with tbe budget plans prom- 
ised next Thursday. 

The decree, signed into force 
late on Wednesday by Presi- 
dent Oscar Luigi Scalfaro, per- 
mits some 2.000 people under 
preventive detention to leave 
prison. If it bad existed 2V* 
years ago. before the anti -cor- 
ruption investigations, none of 
toe more than 600 accused of 
various crimes would have 
entered prison. They would at 
best bave been confined to 
house arrest. 

The restriction on the pow- 
ers of arrest was however only 
one of the reasons behind 
Thursday's resignations of the 
anti-corruption team of Milan 
magistrates led by Mr Antonio 
Di Pietro. They claimed the 
decree was deliberately 
intended to curb their investi- 


gations - preventive detention 
being necessary to stop tam- 
pering with evidence and peo- 
ple fleeing from justice. 

While there is considerable 
public sympathy for the gov- 
ernment’s move to end what 
was seen as often arbitrary 
use of arrest, the government 

Resignation of 
magistrates will 
embarrass Italy’s 
PM, reports Robert 
Graham in Rome 

will not find it easy to justify 
its tactics. A decree with 
immediate effect, which then 
has to be cleared by parlia- 
ment within 90 days, appeared 
an overfaasty means of dealing 
with an issue that was not top 
of the agenda. 

Indeed, it could only be con- 
sidered an immediate priority 
if the government feared the 
magistrates might be about to 
make more high-profile arrests 
affecting its supporters. This 
has been much rumoured in 
recent days, following the 
breaking of a corruption ring 
among the Guardia di Fin- 
anza, toe financial police, that 
allegedly condoned tax eva- 
sion on a huge scale. 

Mr Berlusconi also has much 
explaining about conflict of 
interest to do. because the 
Milan magistrates who have 
resigned were Investigating 
the prime minister’s Fininvest 
empire. The issue of arrest 
directly affected Mr Marcello 
Deirutri. the head of Publi- 


tali a, Fininvest’s advertising 
arm, and a close colleague of 
Mr Berlusconi. He has chal- 
lenged an arrest warrant in 
the courts. 

Already government minis- 
ters are suggesting the decree 
can be altered in parliament - 
especially that part saying 
crimes such as corruption 
against the state do not war- 
rant preventive detention. But 
Mr Berlusconi is unlikely to 
alter the substance of the 
decree. 

He recognises that Mr Di 
Pietro is one of the most popu- 
lar figures in Italy, as a result 
of his work unmasking cor- 
rupt politicians and business- 
men. But he also has opinion 
polls which indicate toe public 
is no longer so interested as 
before in the corruption issue; 
it was barely raised in the 
March general elections. 

The public reaction will be 
crucial, and the generally hos- 
tile response of the press yes- 
terday was perhaps not an 
accurate measure of opinion. 
A compromise is possible, but 
if none is sought and toe pub- 
lic comes behind Mr Di Pietro, 
the populist Northern League 
will be toe first to break ranks 
within the government Until 
now Mr Umberto Boss!, the 
League leader, has been 
looking for firm ground on 
which to challenge Mr Berlus- 
coni and reduce Iris ever-grow- 
ing authority. 

This could be just such a 
pretext Meanwhile Mr Berlus- 
coni, will not make a move 
until be sees how Italy fares in 
tbe World Cup. Be is banking 
on Italy winning. 


T hey call the German Ministry of 
Defence the graveyard of politi- 
cal ambitions. Five postwar 
defence ministers have been forced to 
resign prematurely because of scandal. 
political failure or iU health. Tbe only 
1 man to survive and rise to greater 
things was Mr Helmut Schmidt the for- 
1 mar chancellor. 

Few doubt that Mr Volker Rilhe, the 
pugnacious Christian Democrat politi- 
cian who is the current incumbent, 
would like to emulate Mr Schmidt He 
admits that his feDow Hamburger is a 
role model, even if he is a Social Demo- 
crat And he has certainly proved he is 
a survivor. 

Less than two years ago, Mr Rube's 
political career seemed to be in tatters. 
Touted in the media as a possible heir 
to Chancellor Helmut KohL he stood at 
the party conference of the Christian 
Democratic Union to become one of Mr 
Kohl's five deputy chairmen - and suf- 
fered the humiliation of coming sixth, 
at the bottom of the poll. 

It was a brutal setback for an ambi- 
tious politician, jnd one which caused 
the chancellor rto loss of sleep. For Mr 
Rube had allowed his ambitions to 
become too obvious. 

He was suspected of plotting for a 
future grand coalition with the Social 
Democrats, and Mr Kohl suffers no 
rivals gladly. Ever since that day at the 
Dtisseldorf party conference. Mr Riihe’s 
star has been on the wane. 

Yet this week he was still very much 
In office, exuding his old self-confi- 
dence, having just pulled off a remark- 
able hat-trick. He had seen the constitu- 
tional court give the green light for 
Germany's military forces, the Bundes- 
wehr. to serve on peacekeeping expedi- 
tions anywhere in the world; he had 
persuaded the leaders of all three par- 
ties in the ruling coalition to accept his 
controversial plans to slim toe military 
to just 340,000 men, and cut conscrip- 
tion from 12 to 10 months; and he had 



emerged from the latest budget round 
with his expenditure virtually intact, 
after two years of spending cuts. 

On the face of it, it was no mean feat 
And yet practically nobody in Bonn is 
prepared to give Mr RQhe the credit for 
it. For his success, above all in winning 
the battle in toe constitutional court, 
has a fatal flaw. It means that the 
Bundeswehr is being given a role in the 
modem, post-cold war world - tbe 
chance to participate in international 
peacekeeping - at precisely the moment 
when, largely thanks to Mr Riihe’s pre- 
vious cuts, its morale is at rock-bottom 
and its operational capacity is over- 
stretched. 

From the moment he took over the 
office, little more than two years ago, at 


49. Mr Rflhe has been campaigning fix 
the Bundeswehr to be allowed to serve 
outside the Nato area. First, he tried to 
negotiate a deal with the Social Demo- 
crats to change the German constitu- 
tion, When that foiled, he embarked on 
a policy of deliberately sending men in 
uniform out-of-area, tempting his oppo- 
nents to launch a constitutional chal- 
lenge. 

He sent military doctors to support 
the UN in Cambodia. He sent military 
t observers in uniform to toe former 
* Soviet Union, and he allowed German 
air crews to fly Awacs airborne recon- 
naissance missions to police the no-fly 
zone over Bosnla-Hercegovina. He sent 
a German frigate to the Adriatic to help 
enforce the UN embargo on former 
Yugoslavia. And he dispatched 1,700 
men to Somalia to provide logistical 
support for UN blue berets. 

The opposition rose to the bait, and 
ran to the constitutional court in Karls- 
ruhe to demand clarification. And this 
week the court gave its blessing, with 
the proviso that toe German Bundestag, 
the lower house of parliament, must 
normally sanction every mission. Hie 
government agreed yesterday to sum- 
mon a special session next week, to 
give retrospective approval to the 
Awacs and Adriatic exercises. 

But if Mr RQhe deserves a share of 
the credit for the court decision, his 
reputation on all other questions in 
Germany's defence community zs mud. 
"Even a Green minister of defence 
[committed to abolishing the armed 
forces! would be better than Volker 
Ruhe," one defence analyst said yester- 
day. "He doesn’t give a damn about toe 
Bundeswehr. He has systematically 
destroyed the armed forces in a way 
which is without precedent." 

All the evidence suggests that morale 
in the Bundeswehr is plumbing new 
depths. Parliament’s ombudsman for 
toe armed forces, Mr Alfred Biehie, said 
in his last annual report that constant 


changes or cancellations in budget com- 
mitments and structural derisions had 
“shattered toe credibility and leader- 
ship ability of the political and military 
commanders". 

Mr Rdhe's first problem was that he 
never made any secret of where he 
wanted to be: in the Foreign Ministry. 
And he has used his present position to 
gain political popularity and profilfl 
with that end in mind. 

From the beginning, he derided tort 
the most popular political move WwxW 
be to reap the “peace dividend* from 
the end of the cold war - by cutting.his 
own budget. First he tried to axe the 
Eurofighter, only to discover tost, his 
partners - Britain, Italy and Spam - 
were not prepared to agree. Sofeehad 
to settle for a superficial redesign of the 
aircraft, which will almost certainly 
end up costing more, not less. 

His next mistake was to try to be too 
active in volunteering big cuts in his 
own defence budget 

"Instead of asking the budget com- 
mittee for more than be needed, and 
then negotiating down to a sensible 
compromise, he actually offered them 
bigger cuts than they were contemplat- 
ing,” according to an impartial 
observer. “Tbe budget committee sim- 
ply wasn’t prepared to give up its job. 
so it cut him still more." Real defence 
spending last year was reduced by some 
28 per cent This year’s budget freeze 
amounts to a token reprieve. 

"Nobody would dispute that toe 
Bundeswehr needs to be smaller, 3 
military attache said. “The budget is w* 
longer enough to support 370,000 men. 

Yet from Sir RQhe’s point of view, 
that is still a success: he has reaped u® 
peace dividend. The cut In conscription 
also seems certain to be popular wim 
young voters and their families. He » 
determined to prove the soothsayers 
wrong, and demonstrate that there is a 
political life in Bonn after the Ministry 
of Defence. 


-v. ' • 





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WTO decision delayed 


*-4i; 

1 > i ' ■ 


By Frances WdHams in Geneva 

Members of the General 
Agreement on Tariffs and 
Trade yesterday decided to 
postpone a formal decision on 
toe future headquarters site of 
the World Trade Organisation 
until next week. But trade dip- 
lomats say it is now almost 
certain that Geneva will win 
the day over Boon, the only 
other contender. 

Mr Andras Szepesi, Hunga- 
ry’s Gatt ambassador, who is 
conducting the consultations 
on toe issue, told a meeting of 
trade officials yesterday that 
four-fifths of delegations had 
expressed an official view. 
Other countries are being 
given until noon on Monday 
and delegates will meet again 
next Tuesday, when the final 
decision is expected. 


Diplomats reported Mr Sze- 
pesi as saying there was a 
“dear tendency” towards one 
of the candidates. Though he 
did not say which, the assump- 
tion is that most countries are 
opting to stay in Geneva, 
where Gatt now has its head- 
quarters. The Gatt secretariat 
is due to be transformed into 
the WTO on January 1 next 
year. 

A smiting Mr William Bos- 
sier, Swiss ambassador to Gatt, 
emerged from yesterday's 
meeting to say Geneva's 
chances were "completely 
intact”. "We’re almost there,” 
said another senior ambassa- 
dor who favours Geneva. 

Some uncertainty remains 
because neither toe US nor 
Japan has yet pronounced. 

However, France has pub- 
licly come out in favour of 


Geneva, a francophone city. ® 

have other French-speaking 

countries. Germany claims U* 
support of about 20 coifflW® 
but, with the exception of UW; 
giim , these are mostly smau 
developing nations. 

The contest between Geneva 
and Bonn has been keenly . 
fought with both cities .. 
log multi-mil I ion-dollar 
ages of office accommodation 
and diplomatic pecks to a* 03 " 
the future WTO. w 

However, trade diploma® 
said yesterday that, foHorrtW 

big improvements in the ter®-’ . 
and conditions offered by 
Swiss, there was nothing 
gained materially from movn® 
to Bonn, and much to , 

Other trade officials 
expressed fears that manf«£ 
staff would refuse to mow- 
nip ting the WTO’s work- 


Da. . 


FINANCIAL TIMES WEEKEND JULY 16 / JULY 17 1994 


NEWS: INTERNATIONAL 


INTERNATIONAL NEWS DIGEST 

Plan to tighten 
curb on beef 


S omm v ynon k° wed to political pressure fror 
lt Proposed to increase restriction 
on export of beef from Britain because of the threat of bovin 
spongiform encephalitis, or “mad cow" disease. 

agriculture commissioner, propose 
to Emit exports of British beef in carcase form to herds whic 
have been free of the disease for six years rather than th 
current two years. This would not affect sales of boneles 
nmat Mr Steichen said he based his suggestion on scieatifi 
advice offered by the Commission's veterinary committee. Th 
co mm is si oner's draft is being referred hw c k to the nMigwfttf* 
which must accept his proposal before it can be formal! 
adopted. 


The BSE problem is due to be discussed at a meeting of 
European Union agriculture ministers on Monday. Germany 
has been threatening a unilateral ban on British beef imports 
if the Commission does not tighten up restrictions. But the 
British governement believes it is time to start easing the 
curbs placed on the beef trade since the outbreak of P-SE six 
years ago. It cites the sharp decline in the number of of 
BSE - a 23 per cent drop in the number of ca se s in the first six 
months of the year - as evidence that the disease is under 
control. Deborah Hargreaves, London 


EIB loan accord with Poles 


The European Investment Bank (EIB) has signed a three-year 
framework agreement with Poland that could result in up to 
Eculbn (£789m)in loans from the franfe for infrastructural 
projects aimed at integrating the country with the European 
Union. Mr Wolfgang Roth, a deputy head of the bank, says 
that the agreement marks a shift in thinrtng about Poland at 
the EIB. Instead of treating Poland aB a “post-communist 
country building a market economy" it is now viewed as a 
“prospective member of the European Union**. 

According to Mr Roth, the ETR is prepared to lewd aro und 
Ecu3bn to central and eastern European countries over the 
next three years, with about a third going to Poland. The 
highway building programme in Poland would be a prime 
candidate for loans. Christopher BobmsJd, Warsaw 


US industrial output grows 

Industrial production in the US rose 0.5 per cent between May 
and June - but the increase mostly reflected greater use of 
electricity with unseasonably hot weather. Excluding utilities, 
production rose 0.1 per cent from May, the Federal Reserve 
said. Overall production was &8 per cent higher than in June 
last year, having risen for 13 consecutive months. But the pace 
of growth has ebbed in recent months. 

Industrial output grew at an anneal rate of 4.4 per cent 
during the second quarter as a whole, against &3 per cent in 
the first quarter. This mainly reflected a slowing down in car 
production, partly caused by capacity constraints. There were 
wide variations in the performance of different sectors. Pro- 
duction of business equipment rose 0.6 per cent from May. but 
output of construction supplies rose only 0.2 per cent Mining 
output fell 0.5 per cent The overall industrial operating rate 
rose 0.3 percentage points to 83.9 per cent last month, its 
highest level in five years. iGchael Prvwse, Washington 

Germany loses ‘sherpa’ 

The German government is to lose its top international finan- 
cial negotiator, Mr Gert Haller, state secretary in the finance 
Ministry, to the private sector next year. Mr Theo WaJgel, the 
finance minister , said yesterday that Mr Ha Her - who acts as 
the "sherpa” for phan^iinr Helmut Kohl in the preparation of 
the Group of Seven world economic summits, and is the 
German government representative on the EU monetary com- 
mittee ~ is to join the private WOstenrot building society and 
banking group as joint chief executive from next January. 

Mr Haller. 50, has been state secretary only since August 
last year, when Mr Horst KBihler. his predecessor, resigned to 
become president of the German savings hanks association. 
Mr Waigel said Mr Haller had taken his decision for personal 
reasons. He insisted there had not been "any hint of a dis- 
agreement” with him. Quentin Peel, Bom 

Bond sues TV network 

Mr Alan Bond, the failed Aus- 
tralian tycoon, is suing the 
country's Seven television net- 
work for allegedly implying In a 
programme that he was faking 
brain damage in an unsuccess- 
ful attempt to delay a court 
hearing on allegations of art 
fraud. He faces a preliminary 
hearing in Perth Magistrates' 
Court on Monday on charges of 
fraud relating to the sale of a 
work by Monet entitled La 
Promenade. Reuter, Sydney 



Ex-premier jailed for fraud 

The former Labor premier of Western Australia, Mr Brian 
Burke, has been sentenced to two years In jail after being 
convicted on four charges of fraud, relating to Mr Burke’s 
misuse of parliamentary travel funds to pay off A$17,000 of his 
personal overdraft Emilia Tagasa, Melbourne 

Van plant case rejected 

The European Court yesterday rejected a complaint by the 
French bolding company Matra-Hachette against plans by 
Ford of the US and Volkswagen of Germany to build a mini- 
van assembly plant in Portugal 
Matra-Hachette, which builds Espace minivans for French 
car maker Renault , argued that the Ford-VW joint venture 
fihmiiri not have been cleared under European Union competi- 
tion rules because its capacity of 190,000 units a year will 
dominate the EU market. Rejecting the complaint, the court 
ruled that Matra-Hachette did not provide sufficient proof of 
its claim. The court last year rejected another action brought 
by Matra-Hachette against an EU decision to approve subsi- 
dies to the Ford-VW plant Associated Press, Brussels 

Taiwan woos foreign banks 

Taiwan, has relaxed restrictions on the estab lish ment of 
offshore banking units (OBUsj in a bid to attract more 
operations and to help promote syndicated loan business 
in the local market Foreign banks can now apply to set up 
an OBU without first having established a branch, in Taiwan, 
an official at the finance ministry's bureau of monetary 
affairs said yesterday. Applicants need not be among the 
world's top 500 financial institutions as before. “They only 
need to prove they have prudential management ajjood 
business plan and the means to operate in Taiwan, M the 
official said- The minimum capitalisation requi r eme nt has yet 
to be decided, but will probably be NT$8Qm (£lJm). Taiwan 
currently has 38 OBUs, 19 of them run by foreign banks. Laura 
Tyson. Tazpei 

BBC boosts Asia reception 

The BBC said yesterday it would spend £3Gm on a new relay 
station in Thailand to improve reception of Its World Service 
radio programmes in Asia. The relay station, comprising four 
250-kilowatt transmitters, will carry broadcasts in up to ten 
languages and Improve reception for more than 45 per cent of 
the world's population, the BBC said. BBC radio signals are 
weak in parts of Asia, and a growing number of Asians get 
news from television. Mr Prasoog Soonsiri. Thai foreign minis - 1 
for, signed an agreement for the relay station with British 
diplomats in Bangkok yesterday. The transmitters should I 
start breadcasting before the end of 1996 and be fully opera- 1 
tlonal by mid-1997. Victor Mallet, Bangkok 


Rabin to meet Hussein at US summit 



PLO chairman Yassir Arafat greets a well-wisher during prayers in Gaza City yesterday hm» 


By Julian Ozanne in Jerusalem 
and George Graham 
In Wash in gton 

The Arab-Israeli peace process 
gathered pace yesterday as the 
US announced the first public 
summit between the Israeli 
and Jordanian leaders and as 
Israel made substantial over- 
tures to Syria on the eve of a 
Middle East peace shuttle by 
Mr Warren Christopher, US 
secretary erf state. 

President Bill Clinton said 
Mr Yitzhak Rabin, Israeli 
prime minister, would meet 
King Hussein of Jordan in 
Washington on July 25- The 
two neighbouring states have 
technically been at war since 
1948. 

The announcement, con- 
firmed by Mr Rabin's office, 
came after Mr fihtmnn Peres, 
Israeli foreign minister, said 
the Jewish state recognised, the 
sovereignty of Syria over the 
Israeli-occupied Golan Heights. 
Mr Peres maflp the remarks in 
an apparent attempt to break 
the deadlock in talks before Mr 
Christopher arrived in the 
region on his third shuttle this 
year. 

Taken together, the two 
moves represent a significant 
further step in Arab-Israeli 


negotiations. Mr Clinton said 
the summit would be “another 
step toward the achievement of 
a comprehensive and lasting 
peace in the Middle East”. 

The US plans to lay on a fill] 
ceremonial fanfare for the 
occasion. Mr Clinton said that 
in addition to their meeting, 
Mr Rabin and Ring Hussein 
would be invited to address a 
joint session of Congress. They 
will also attend a formal din- 
ner at the White House. 

In Israel the Rabln-Hussein 
meeting is expected to bolster 
both the government and pub- 
lic support for the peace pro- 
cess. 

The summit wQl he seen as 
one of the first concrete bene- 
fits from peace talks with Pal- 
estinians and a step to ending 
Israel’s regional Isolation 
despite a 13-year-old “cold 
peace” with Egypt 

For Jordan the move marks 
the determination of King Hus- 
sein not to be left out of the 
unfolding Middle East peace 
process and to press Jordan's 
interests ahead of wider Arab 
co-ordination, particularly with 
Syria. 

As an inducement to Jordan 
to move ahead in its peace 
talks with Israel, the US is dis- 
cussing possible debt relief 


measures as well as the supply 
of new military equipment 
The announcement of the 
Rab in-Hussein summit came 
after Jordanian and Israeli offi- 
cials ended technical yes- 
terday to prepare for formal 


negotiations next Monday. The 
preparatory talks also laid the 
groundwork for a meeting in 
Jordan on Wednesday between 
Mr Christopher, Mr Penes and 
the Jordanian foreign minister 
to focus on economic relations 


and regional integration pro- 
jects. 

Progress in peace talks 
between Israel and Jordan will 
marginalise D amas cus and put 

pressure on Syrian President 
Hafez aH Assad to compromise 


in talks over the Golan 
Heights. Israeli officials said 
yesterday that Mr Peres’ accep- 
tance of Syrian sovereignty 
over the Heights marked a 
“far-reaching” concession to 
Damascus. Israel annexed the 
strategic plateau in 1981. 

They said Mr Peres had 
attempted to offer a ground- 
breaking opening in the talks 
which have been stalled by 
Israeli refusal to say how much 
land it would return and 
Damascus’ refusal to specify 
whether it would agree to a 
foil peace including open bor- 
ders. trade and embassies. 

Mr Christopher will also 
meet Mr Yassir Arafat, chair- 
man of the Palestine Libera- 
tion Organisation, to review 
the implementation of the 
Israel-PLO peace agreement. 
He said he would discuss “the 
steps that I feel he must under- 
take to establish the account- 
ability necessary to reassure 
the donor community”. 

Mr Clinton said the Rabln- 
Hussein meeting was “another 
step” on the long road to an 
era of Middle East peace. "1 
will do everything I can to 
make sure the peoples of the 
region realise the blessings of 
peace that have been denied 
too long to them.” 


Cardoso’s presidential hopes boosted by Real 


By Angus Foster in Sao Paulo 

Mr Fernando Henrique Cardoso, 
Brazil's presidential candidate and 
former f manm minister, appears to 
have significantly closed the gap on 
his main rival since the introduction 
of toe country's new currency, the 
Real, this month. 

Mr Cardoso negotiated the Refll and 
other economic measures through 
Congress before resigning to run for 
president. He needs toe new currency 


Colosio’s 

assassin 

‘acted 

alone 5 

By Ted Bardacfce 
kt Mexico City 

The special prosecutor 
investigating the assassination 

of Mexican ruling party presi- 
dential candidate Luis Don- 
aldo Colosio has p r ese nted his 
final report cm the killing - 
and then pr o mptl y resigned as 
a public outcry condemned his 
conclusions as insufficient and 
unbelievable. 

The prosecutor, Mr Mig ue l 
Montes, said in his final 
report, which was expected to 
close the case, that Mario 
Aburto, the confessed assas- 
sin, acted alone when be shot 
Mr Colosio during a campaign 
rally last March in Tijuana. 
This contradicted Ms prelimi- 
nary report, which claimed 
that Aburto was part of a con- 
spiracy that included Ti juana 
members of Mr Colosio’s own 
Institutional Revolutionary 
party (PRI). 

Reaction to the new theory 
was swift and harsh. Afi lead- 
ing political parties, deep into 
their campaigns, criticised the 
report, with the opposition 
claiming it was an attempt to 
close the case without scandal 
before the presidential elec- 
tions on August 21. 

Public opinion polls show 
that Mexicans overwhelmingly 
believe that Aburto did not act 
alone and that the government 
is im willing or unable to find 
the intellectual authors of the 
aaaffslnflttmi. 

In announcing Mr Montes’ 
resignation. President Carlos 
Salinas stressed that the ease 
had sot been dosed. Instead, 
he said Mr Montes’ replace- 
ment; Mr Olga Isfas de Gonz- 
alez, would specifically look 
into whether Aburto acted on 
orders erf others. 

Mr Salinas also set up a 
commission to review Mr Mon- 
tes' work, the fourth snch 
panel the president has cre- 
ated in as many months in . an 
attempt to give the govern- 
ment investigation some credi- 
bility. 

The lawyer representing Mr 
Colosio’s widow Diana Lama 
in the investigation. Ob’ Juan 
Velasquez, welcomed the resig- 
nation. “A complete revision 
of the case should be done to 
remedy the deficiencies of the 
investigation. . . which were to 
produce absolutely subjective 
conclusions,” Mr Velasquez 
said. He called Mr Montes' 
final report “ridlculons - . 

Mr Colosio’s substitute as 
ffie ruling party presidential 
nominee, Mr Ernesto Zedillo, 
also criticised Mr Montes’ find- 
ings. even though a lone gun- 
man theory saves the PRI 
from suspicion that it partici- 
pated to the assassination. Bat 
most political analysts agree 
that Mr Zedillo simply could 

not support an investigation 

that had lost its credibility. 


to be seen as effective to reducing 
inflation if he is to catch the front 
runner, left-winger Mr Luiz InAcio 
Lula da Silva. Before the currency 
was launched, Mr da Silva led Mr 
Cardoso by 41 per cent to 19 per cent 
to opinion polls. 

But a poll released yesterday, and 
conducted after the new currency’s 
introduction, showed Mr da Silva's 
support for the October election fall- 
ing to 34 per cent and Mr Cardoso’s 
tiring to 25 per cent More important 


the Datafolha poll showed the two 
level on 43 per cent for the second 
round run-off. 

The findings backed up polls con- 
ducted before the new currency had 
time to take effect which suggested a 
string to Mr Cardoso. The stock mar- 
ket which fears Mr da Silva would 
prevent liberalisation of Brazil’s econ- 
omy, gained more than 2 per cent in 
early trading yesterday. This followed 
a near 5 per cent increase on Thurs- 
day a f t er annthpr poll suggested Mr 


Cardoso had gained ground to the 
populous state of Minas Gerais. 

Mr da Silva and his Workers’ party 
(PT) played down the poll's signifi- 
cance and pointed out that Mr Car- 
doso was still behind In every state. 
Mr da Silva has had a difficult week, 
fighting off corruption allegations 
against his running mate Jos6 Paulo 
Bisol. The press claims may not mat- 
ter to terms of votes, but denial of 
them has taken up valuable cam- 
paigning tint" 


The latest poll also showed a sharp 
fall to opposition to the new currency. 
The proportion of people believing 
themselves worse off because of its 
introduction has more than halved to 
20 per cent, while 67 per cent of peo- 
ple said the currency was good for 
Brazil. 

Inflation is expected to fall to a sin- 
gle figure this month. This compares 
with an Inflation rate of 50 per cent in 
June under the old currency, the cru- 
zeiro real. 





FINANCIAL TIMES WEEKEND JULY 16/JULY l? 1994 


NEWS: INTERNATIONAL 


Japan’s widening trade gap hits hopes 


% WBBam Dawkins in Tokyo 

Japan's trade gap widened by 148 per 
Cent to $2L35bn (£7.3bn) in the year to 
June, a serious blow to the Finance 
Ministry's belief that the surplus bad 
peaked. 

. The increase, fuelled by a 3(13 jump 
m exports to the US and a 14. 1 per 
cent rise in sales to the rest of Asia, 
brings Japan's overall trade surplus 
for the first six moo fos of the year to 
560-Qibn, a 5.1 per cent increase from 
the 1993 period. In May the surplus 
fell for the first time in six months. 


Japan's politically sensitive surplus 
with the US rose by 14 per cent to 
$24£6bn in the opening six months - 
or by 43 per cent in June alone • 
driven by the expanding US econo- 
my's appetite for foreign goods. 

“The figures reflect the economic 
strength of the US and Asia, driving 
up exports there. What is missing Is a 
recovery in Japan,” said Mr Jim Ves- 
tal, chief economist at Barclays da 
Zoete Wedd in Tokyo. 

Japan's demand for imports grew 
by 8.3 per cent in June, or an underly- 
ing U per cent after adjusting for a 


fell fn oil prices, a slight slowdown on 
previous mouths. Over the first six 
months, imports rose by 7.6 per cent. 
This is sligifly higher than exports, 
at 6JS percent 

The renewed surge in the yen. dat- 
ing from the last week in June, has 
led some analysts to doubt that the 
economy will grow enough in the sec- 
ond half to bring the sharp drop in 
the surplus they were forecasting. 

The government's Economic Plan- 
ning Agency yesterday recognised 
that the recent sport in the yen’s 
value casts a shadow over recent 


Improvements in corporate earnin g s 
and business sentiment. "If it had not 
been for the appreciation of the yen, 
the Japanese economy would have 
been dose to a state of bottoming 
oat,” an official said- 

Private sector economists believe 
that recovery would be stifled if the 
yen rase to Y90 to the dollar, but that 
growth would be possible at YlOO. The 
yen fell slightly against the US cur- 
rency in Tokyo yesterday, from Y98.19 
to Y98.30 to the dollar. 

The latest bankr uptcy figures indi- 
cate that the health of small er compa- 


nies continues to be fragile. Debts of 
bankrupt companies fell by 12.7 per 
cent in the opening six months of this 
year, but the number of corporate col- 
lapses still increased by 1.5 per cent to 
6,925, according to Teikoku Databank, 
a credit research agency. Within that, 
a record 632 per cent of bankruptcies 
were directly caused by poor eco- 
nomic conditions. 

Separately. Tokyo department 
stores yesterday reported that sales 
foil by an annual 3.4 per cent in June, 
an improvement on May but still the 
28th month of decline. 


Paper groups fined in £260bn state plan to boost cable 

US anti-trust probe 


Three Japanese paper 
companies and a Japanese 
executive agreed to plead 
guilty and have been fined 
more than g6m (£3.8m) for 
anti-trust activity, the US Jus- 
tice Department said, writes 
Michiyo Nakamoto. 

Mitsubishi, the Japanese 
trading house, its US arm Mit- 
subishi International, Wanwiir! 
Specialty Papers, a subsidiary 
of Japan's New QJi Paper, and 
a former president of Kaitzaki, 
are charged with conspiring to 
fix the prices of thermal fax 
paper in the US market in 1991 
and 1992. The charge followed 
a two-year investigation by 


US and Canadian authorities. 

Mitsubishi exported 55m of 
thermal fox paper to the US 
while Kamtaki, which manu- 
factures the paper in the US, 
made 540m in sales in the 
$L20m-a-year US market 
The anti- trust activity raised 
the price of thermal fax paper 
in the US market by about 10 
per cent, according to the Jus- 
tice Department 
Of the fines, Kanzaki is to 
pay S4.5m in the US and 
05950,000 (£444,000) in Can- 
ada. Its former president will 
pay 5165.000. Mitsubishi will 
pay 5126m, and its US subsid- 
iary 5540,000. 


By Michiyo Nakamoto in Tokyo 

Japan's Ministry of Con- 
struction is proposing to build 
an underground cable box net- 
work that would be able to 
bouse fibre optic cable for the 
country's information 

superhighway, the ministry 
said. 

The project, estimated to 
cost Y40,000bn (£260bnx would 
be entirely financed by public 
funds. 

The ministry hopes to pres- 
ent a bill to the next regular 
session of the Diet, the Japa- 
nese parliament It hopes that 
the bill will be approved by 
the end of the present fiscal 
year and that construction 


work will start by fiscal 1995. 

Japanese politicians and 
bureaucrats alike have been 
keen to promote construction 
of an information superhigh- 
way along the lines of the 
national information infra- 
structure promoted by Vice- 
President Al Gore in the US. 

They have also recognised 
that multimedia could provide 
much needed new businesses 
to promote future economic 
growth. The Ministry of Posts 
and Telec ommuni cations, for 
example, believes multimedia 
markets will be worth 
Y123,Q0Qbn by 2010. 

The Japanese authorities are 
also concerned that Japan has 
lagged behind the US in mov- 


CONTRACTS & TENDERS 


SAO PAULO SOUTHERN METROPOLITAN RAILWAYS PROJECT 
NOTICE OF PREQUALIFICATION TO BID FOR CIVIL WORKS CONTRACTS 

The Government of the State of Sao Paulo has applied for a loan from the Interamerican Development 
Bank (IDB), in various currencies, equivalent to US $402 million, to part finance the cost of 
implementation of the TRANSPORTE SIM, an Integrated Transport System for the Sao Paulo 
Metropolitanos Region, and intends to apply part of the proceeds of this loan to eligible payments under 
the contracts) for which this Notice of Prequalification is issued. CPTM (Companhia Paulista de Irens 
Metropolitanos), the Sao Paulo -State Metropolitan Railways company, will act as the Project 
Implementation Agency (PIA), while IDB loan resources shall be managed and transferred to the PIA by 
STM (Secretaria dos Transportes Metropolitanos), the State Secretary for Metropolitan Transport, which 
has already set up an Executive Group to oversee the project implementation. 

Basic detailed designs have already been concluded by CPTM, so that CPTM mow intends to prequalify 
contractors which may be interested in presenting bids for the construction of sections of the Campo 
Limpo - Santo Amaro metro link, located in the city of Sao Paulo, Brazil. Two separate bids for civil 
works shall be issued: 

Bid 1 - Santo Amaro Section (approximately 1,114 meters), which comprises the construction of Santo 
Amaro station over the Pinheiros River, including a stay suspension bridge structure and elevated 
sections adjacent to the station. 

Bid 2 - Largo Treze Section, comprising the construction of underground Largo lieze station and of the 
railway sections adjacent to the station (approximately 850 meters), to be built in the inverted cut-and- 
cover method, plus the construction of approximately 210 meters of dual width tunnel through 
sedimentary soil, employing the New Austrian Tunnelling Method (NATM). 

Both contracts will request, in addition to the execution of civil works, development of engineering 
design work and execution of detailed construction drawings and documents. 

This invitation for prequalification is open to any bidder (including all members of a joint venture) that 
have their origin in the eligible source countries, as defined under the Guidelines for Procurement of the 
IDB. 

Bidders may obtain further information, and acquire the bidding documents, until August 16, 1994, at 
2:00 PM (Brasilia Standard Tune), either in person or through mail or fax, at the following address: 

Secretaria de Estado dos Traxisportes Metropolitanos 
CIO Grupo Executivo 

Rua Butanta, no. 285, quinto andar, Pinheiros 
05424-140, Sao Paulo, SP, Brazil 

Telephones: 55 (11) 815-0255, ext 266, or 55 (11) 705-4900, ext 300 
Fax no.: 55 (11) 816-8255 

Requests should be dearly labelled as "Request of Instructions - prequalification for Campo Limpo - 
Santo Amaro metro link construction bids" followed by the bid number and section, as indicated 
previously, in bold type. 

Two complete sets of instruction documents will be readily available upon request, separately for each 
of the two bids. Delivery or remittance of documentation is subject to the payment of a non-refundable 
fee, for each set, of US $50.00 (fifty US Dollars) or its equivalent in Reals (R$), the Brazilian currency, 
converted according to the standard commercial exchange rate. Payment shall be made through bank 
order or check, to the order of Companhia Paulista de Trens Metropolitanos - CPTM, dearly indicating the 
name of the company which requests informatioa Bank account for deposit is identified as follows: 

Bank : Banco do Estado de Sao Paulo - B ANESPA 

Agency : Rio Branco, no. 0205 
Account : 13-02468-7 

CPTM will readily dispatch the requested documentation through registered mail but said Company 
shall not be made responsible for any undue delay or loss of mailed material. 

Minimum requirements that entitle a given company to apply for each prequalification are specified in 
the instructions. Prequalification applications for each contract shall be submitted in dosed packages, 
either personally or by registered mail, and should be at the address indicated above no later than 
September 6, 1994 at 2.*00 PM (Brasilia Standard Tune). Any application arriving after that day and hour 
shall not be accepted. Packages containing applications should be dearly marked as: "Solidta^ao de 
Prequalificagao para (here go the bid number, either 1 or 2, and section name)". 

Applicants will be informed in due time as to fee result of their applications, and only those which 
prequalify will be invited to present bids. 





mg towards an advanced infor- 
mation society and have put 
considerable e ff orts into catch- 
ing up frith Che US. 

Under the Construction Min- 
istry's plan, the network would 
contain telephone lines as well, 
pnnhling gristing 1 above-ground 
telephone poles to be gradually 
abolished. The ministry hopes 
the balk of the work can be 
completed by 2020. 

Telecommunications opera- 
tors wanting to provide ser- 
vices using fibre optic cable 
woold be able to do so as long 
as they laid the cable in the 
box network. 

NTT. Japan's major domestic 
telecommunications company, 
has already laid over 65.000km 


of fibre optic cable throughout 
Japan and plans to bring fibre 
to homes by 2015. 

The company has recently 
been moving aggressively to 
position itself as a leading sup- 
plier of multimedia services by 
linking up with US companies 
involved in multimedia. 

Most recently it announced 
an agreement with Microsoft of 
the US. the leading software 
company, to develop an inter- 
active multimedia system. 

However, the Construction 
Ministry’s plan would, if real- 
ised, also proride new entrants 
into the multimedia business 
an option of using a network 
that is not under toe control of 
a would-be competitor. 


GM chief urges 
compromise to 
spur trade talks 


By Michiyo Nakamoto 

Mr John Smith, president of 
General Motors, yesterday 
ratfprf for compromise in the 
stalled trade talks between the 
US and Japan, which he said 
were causing uncertainty in 
the foreign exchange markets. 

“Somewhere along toe line 
we need to reach some form of 
compromise to take these trade 
talks forward." Mr Smith said 
in Tokyo. 

His comments came as US 
and Japanese trade negotiators 
failed in tnika this week to 
agree on how foreign access to 
Japan’s vehicle and parts mar- 
kets could be improved. 

The chief executive of the 
world's largest carmaker noted 
that the framework trade nego- 
tiations were important in 
helping foreign companies 
make progress in Japan but 
added that “the strengthening 
of the yen against the dollar 
has done more to level the 
trade playing field between 
Japanese and US companies 
than all of the rhetoric and pol- 
icy initiatives of the previous 
20 years". 


Mr Smith warned that “the 
fact that the US-Japan trade 
imbalance has deteriorated 
despite the high-profile diplo- 
matic talks. . . has not gone 
unnoticed by the Congress and 
the public". Consequently, “if 
Japan fails to open its markets 
more, then I believe the yen 
will continue to strengthen to 
the detriment of Japanese 
exporters". 

GM had benefited signifi- 
cantly from the yen’s sharp 
appreciation, Mr Smith indi- 
cated. 

The company has seen com- 
ponent sales to Japanese com- 
panies, for example, rise sub- 
stantially over toe past year 
and expects in four years to 
double its 1993 sales to Japa- 
nese companies of SSOOm 
(£5 12m). 

GM also saw a 27 per cent 
increase in sales of cars and 
trucks in Japan in toe first six 
months of this year, to 17,400 
units, of which about 8,000 
units were made in North 
America. 

This compares with 31.958 
units for toe whole of last 
year. 


N Korea ‘poses 
threat to region’ 


By WB&am Dawkins 

Japan's Defence Agency 
yesterday warned that North 
Korea’s weapons programme 
was "a serious destabilising 
factor” in east Asian security. 

North Korea’s suspected 
plans for nuclear, rhominaj end 
biological weapons posed an 
increasingly grave threat to 
Japan and the region, warned 
the agency, Japan’s equivalent 
of a defence ministry, in its 
annual white paper. 

This normally routine exer- 
cise in informing the public of 
the current state of defence 
policy has extra significance 
this year as the Japanese gov- 
ernment is p ntHrtp thg finish- 
ing touches to a long-term 
overhaul of defence policy, due 
next month, in which reduc- 
tions in grounds troops are 
envisaged. Understandably, the 
agency wishes to head off any 
drastic decrease in its strength. 

“Defence strength is not 
something that can be 
arranged overnight," the white 
paper said. The study was pre- 


pared before toe death of Presi- 
dent Kim Q-sung, toe fanner 
North Korean leader. 

Mr Ifirotsu Ota. a Defence 
Agency adviser, said there 
were do contingency plans in 
the event of an attack by North 
Korea, but that measures 
would be considered if Pyong- 
yang went ahead with its mis- 
sile plans. 

North Korea would soon 
complete Its Rodong-l missile, 
whose range of 1,000km put 
most of Japan within reach, 
the paper said. Even longer 
range missiles were on the 
way, it warned. 

Despite the end of the odd 
war the agency expressed cau- 
tiou about the 240,000 Russian 
troops stationed in the for east. 
Their future was uncertain, 
linked to “political and eco- 
nomic instability in Russia”. 

The agency said Japanese 
forces were capable of defend- 
ing Japan against a small 
attack and holding off a large 
assault until toe deployment of 
US forces, under the US-Japan 
security treaty. 


Siemens gains 
stake in Thai 
rail contract 


By Victor MaHot in Bangkok 

A joint venture of Germany's 
Siemens group and Italian-Thai 
Development, the leading Thai 
construction company, was 
yesterday awarded a turnkey 
contract worth $l.lbn (£705m) 
- excluding financing costs - 
to build what Is expected to be 
Bangkok’s First urban rail sys- 
tem. 

The consortium signed the 
agreement with Bangkok Tran- 
sit System Corp (BTSC), a sub- 
sidiary of Thailand's Tanayong 
property group. Tanayong has 
a 30-year concession to build 
and operate two elevated rail 
lines with a total length of 
24km 

Rang frn y h y no macs tr ans it 

network for its citizens other 
than buses, and toe city's traf- 
fic jams are notorious. But like 
all big transport projects in the 
capital, BTSC's planned rail- 
way has been dogged by delays 
and controversy. Successive 
governments have failed to 
cater to Bangkok's transport 
needs or to reconcile conflicts 
between rival projects. 

Financing for the BTSC proj- 
ect from Deutsche Bank, KfW. 
toe International Finance Corp 
and other lenders has yet to be 
finalised, and BTSC says the 
con ditional offer of a financing 
package from toe German-Thai 
consortium will expire at the 
mid of August if negotiations 
are not completed. 


But the project was given a 
boost this week when Mr Cha- 
in Sophonp3nich, executive 
chairman of Bangkok Bank, 
South-East Asia's largest bank, 
announced his support 

Mr Chatri’s sister, Chodchoy, 
has spearheaded a protest 
against the elevated railway on 
environmental grounds, 
although BTSC's supporters 
say the streets of Bangkok are 
already so unattractive and 
polluted that the project win 
not make much difference and 
may even reduce air pollution 
as the trains are electrically 
powered 

Mr Wolfram Martinson, pres- 
ident of Siemens Transporta- 
tion Systems Group, said just 
under half of the contract 
value would go to Italthai for 
civil works, with the rest going 
to Siemens for the rolling 
stock, power supply and other 
items. Trains would be pro- 
vided by Siemens' subsidiary 
Due wag. 

BTSC says toe system, with 
35 stations and 102 carriages in 
three-carriage sets, will be able 
to carry 700.000 passengers a 
day. 

“The elevated system will 
provide travellers with a new 
and exciting view of Bangkok 
while carrying them above the 
traffic jams and floods which 
daily waste our resources and 
drain the travelling public's 
energy," said Mr Anat Arhhab- 
hirama, BTSC president 



A US soldier runs through a readiness drill an a US Array 
Patriot missile at Osan Air Base south of Seoul yesterday *mm 

Seoul to curb 
K im mourning 


By John Burton fri Seoul 

The South Korean government 
is to crack down on leftist 
organisations planning to hold 
mourning ceremonies for toe 
late North Korean President 
Bn Q-smig, whose funeral Is 
scheduled for tomorrow. 

The announcement follows 
the firebombing of six police 
stations In Seoul on Thursday 
by radical students protesting 
at the arrest of student organ- 
isers after they praised Presi- 
dent Khn. 

Student organisations have 
also said they will send groups 
conveying their condolences to 
Pyongyang, after North Korea 
announced it would allow 
South Koreans who wanted to 
pay homage to Mr Kim to 
cross the heavily fortified 
demilitarised zone separating 
the two Koreas. 

North Korea yesterday 
resumed propaganda attacks 
against the South after sus- 
pending them following the 
president’s death. It criticised 
South Korean President Kim 


Young sam for raisi ng ten - 
slons by placing the country’s 
military and police on alert 
after the announcement last 
Saturday of Mr Kim’s death. 

It compared the “rode" 
actions to “setting a fire at a 
funeral home”. 

“Despite tire fact that even 
tire US president and Japanese 


__ the death ctf Presi- 

dent Kim fi-sung, only Kim 
Young-sam. . . is acting reck- 
lessly,” declared the state 
controlled Radio Pyongyang. 

South Korean officials have 
privately criticised US Presi- 
dent KO Clinton for offering 
condolences over Mr Kim's 
death in what was seen as a 
diplomatic gesture to maint a i n 
US dialogue with the new 
North Korean leadership. 

Suggestions by members of 
the main opposition D ento 
cratic party to send a Sontfc 
Korean condolence mission™ 
Pyongyang in an effort w 
improve relations have been 
co ndemne d by the ruling D*®" 
ocratic Liberal party. 


Beijing cool on HK overtures 


Mr Qian Qicheu, China's 
foreign minister and vice-pre- 
mier, reacted coolly yesterday 
to a suggestion by Mr Alistair 
Goodlad, British Foreign Office 
minister, that toe two coun- 
tries pat behind them past dis- 
putes over Hong Kong’s politi- 
cal reform and co-operate on 
other Issues concerning the 
territory, Our Foreign Staff 
reports. 

Mr Qian also gave the 
impression of turning down a 
proposal by Britain's foreign 
secretary, Mr Douglas Hurd, 
that they should have an 
exchange of visits. 


Mr Goodlad told reporters in 
Beijing yesterday that he had 
had a long discussion on Hong 
Kong issues with Mr Qian’s 
deputy, Mr Jiang Eaton 

“I emphasised the need to 
put our past disagreements on 
constitutional matters behind 
us and to work together on the 
important agenda of Issues 
that have to be addressed in 
the run-up to the transfer of 
sovereignty in toe interests of 
building up the stability and 
prosperity of Hong Kong,” Mr 
Goodlad said. 

Two hours later as Mr Good- 
lad was meeting Mr Qian, the 


Chinese foreign minister broke 
custom by answering two Ques- 
tions from a Hong Kong 
reporter about Mr Goodlad’s 
remark. Mr Qian was asked 
whether China bad said that 
in the absence of political 
co-operation, there could be 
co-operation on other Hong 
Kong issues. Mr Qian said: 
“We did not say things to 
that effect If there is to be 
co-operation there should be 
comprehensive co-operation In 
all areas.” Asked about pros- 
pects for his talks with Mr 
Goodlad, Mr Qian laughed and 
said he could not answer this 


when they had only just met. 

Later the official Xinhua 
news service reported Mr 
Goodlad gave Mr Qian a mes- 
sage from Mr Kurd proposing 
an exchange of visits or a 
meeting between the tw oJ“ 
Qian reportedly replied “whaj 
could be agreed on at present" 
was that they should max 
when they were both in New 
York for a UN General Assem- 
bly meeting this year. 

A possible reason for ms 
coolness is that the 
took umbrage at recewm* a 
public sermon on the neea w 
cooperate over Hong Kong. 




N _£g^ f g tAL . TIMES WEEKEND JULY [(5/JULY 


17 1994 


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FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


NEWS: UK 


Electric chief makes £466,000 option profits 


By WBHazn Lewis 
and David LasceBes 


Mr James Smith, ch airman of 
regional electricity company 
Eastern, has made a profit of 
£466,867 by cashing in share 
options awarded to Mm after 
privatisation. 

It brings to more than £12zn 
the profits made by directors of 
the UK's privatised water and 
electricity companies exercis- 


Anglo 
Irish 
talks hit 


impasse 


Talks aimed at reaching a 
lasting political settlement in 
Northern Ireland ground to a 
s tandstill last night after Mr 
John Major, the prime minis- 
ter, and Mr Albert Reynolds 
his Irish counterpart, were 
unable to reach a compromise 
on how to take forward the 
peace process, Emma Tucker 
writes. 

The UK-lrish s ummi t sched- 
uled to taka place at the end of 
next week has been put off 
until autumn when the two 
leaders will meet informally. 

During yesterday's talks in 
Brussels, ahead of the summit 
to select a new president of the 
European commission, Mr 
Major was looking for a pledge 
from Dublin that it will modify 
the Republic's constitutional 
claim to Ulster. Mr Reynolds 
has been reluctant to give any 
firm commitment ahepd of the 
conclusion of an overall agree- 
ment between unionists and 
nationalists. 


London paper 
launch next week 


Tonight, the new London even- 
ing newspaper being set up by 
a Yorkshire businessman, 
plans to launch next Thursday. 

The paper, which will be dis- 
tributed free to central London 
commuters on weekdays, win 
represent the first competition 
for the Evening Standard sin™ 
1987 Lord Rothermere closed 
the Evening News for the sec- 
ond time. 


Criminal reforms 
to miss assent 


The Criminal Justice Bill, 
which has been the subject of 
intense opposition in the 
House of Lords, will not 
receive its royal assent by the 
start of the Commons' summer 
recess, Mr Michael Howard, 
the home secretary, said yes- 
terday. 

He confirmed that the legis- 
lation would not have passed 
through all its parliamentary 
stages by the time the Com- 
mons rises on Thursday. 


Ex-Nissan chief 
to appeal to Lords 


Former Nissan UK managing 
director Mr Michael Hunt was 
yesterday given leave to appeal 
to the House of Lords against 
his conviction for Involvement 
in a £55m corporation tax 
fraud. 

The Court of Appeal, which, 
rejected Mr Hunt’s initial chal- 
lenge in May, certified that the 
case raised a point of law of 
general public importance 
enabling a petition to the law 
lords for leave to appeal. 


Pollution bill 


A bill approved by the Com- 
mons yesterday will enable the 
government to ensure that an 
international agreement on 
new measures to combat oil 
pollution comes into force next 
year. MPs approved amend- 
ments by the House of Lords to 
the Merchant Shipping (Sal- 
vage and Pollution; Bill, and it 
is expected to receive the royal 
assent next week. 


M25 delay 

The public inquiry into the 
scheme to widen Britain’s busi- 
est stretch of motorway, effec- 
tively creating a 14-lane high- 
way, is to be delayed, the 
government said yesterday. 


mg their share option perks. 

Many of the executives are 
sitting on substantial profits 
from share options that they 
have not yet exercised and also 
from options that they have 
exercised but have not yet 
sold. 

(hi April 5 Mr Smith, who at 
privatisation earned a salary of 
£62#0. exercised 121,107 share 
options. He Immediately sold 
60,554 shares at 6-69p each and 


60,553 the day after at 6£0p, to 
give him a total profit of 
£46S£67. 

Three other Eastern direc- 
tors recently exercised share 
options b rin gin g thgm a com- 
bined profit of £143,000. The 
company said that It was "a 
private matter for the directors 
whether they exercised the 
share options". 

A spokesman said that “in 
order to attract and retain 


senior executives of the right 
calibre and degree of specialist 
toimt Eastern has to be pre- 
pared to offer a remune r a tio n 
package which is comparable 
with the rest of industry.” 

Eastern's recently published 
anmmi report, in line with sev- 
eral other water and electricity 
company reports, gives some 
details of directors' share 
options but does not reveal the 
actual profit Mr Smith m ade. 


Stock Exchange disclosures 
compiled for The Financial 
Times by The Inside Track, the 
Edinburgh-based consultancy, 
reveal the actual gross profits 
made by directors when exer- 
cising share options. 

Mr Tony Coleman, group 
finance director of Yorkshire 
Electricity, made a profit of 
£252,550 by exercising 61,957 
options in April and then sell- 
ing on 45,000 shares. That left 


him with 16,957 shares which 
are showing a paper profit of 

£49.854. 

Water company directors 
have made total profits of 
about £4.5m by exercising 
options and selling shares 
.sine* January lest year. This 
compares with profits of about 
£7.5m made by executives of 
regional electricity companies. 

An exception to the rush to 
exercise options Is Norweb, the 


Manchester-based utility, 
where none of the executives 
has so ter cashed in rights. 

Six executives have options 
on nearly 600,000 shares, more 
than half of which, they could 
exercise immediately at a 
profit of more than £3 a 
share. 

A company spokesman said 
he could not comment on what 
executives did with their 


Pledge of (if) 
no more |Jn< 
cutsm V | 
defence A] W 1 


By Bruca Clark 


Row grows over 
aid for Hualon 


Work disabled quota faces axe 


By James Hits and Ivor Owen 


By David Owen 


The government is coming 
under mounting pressure to 
reconsider its decision to pro- 
vide a £6lm grant for the Hua- 
lon textile project in Belfast 
Mr Nicholas Winterton, Con- 
servative MP for Macclesfield, 
is seeking a meeting on the 
subject with Mr Tim Smith, the 
Northern Ireland minister. 

Mr Winterton, chairman of 
the Manufacturing and Con- 
struction Industries Alliance, 
an industry pressure group, 
said he was “bitterly disap- 
pointed” by replies from Mr 

Smith to 8 series Of parHatrem- 
tary questions. 

He described the decision to 
earmark aid for the £157m proj- 
ect as “one of those great civil 
service blunders that have 
affected British industry for 
several years". 

Mr Christopher Whitehouse, 
the alliance's chief executive, 
said: “We want it stopped,” 

Mr Winterton 's remarks 
came a week after it emerged 
that the recently established 


Commons Northern Ireland 
committee is to probe aspects 
of the project as part of its 
Inquiry into employment cre- 
ation in the province. 

The plant - to he built by a 
Malaysian division of Hualon, 
a Taiwanese conglomerate - 
will represent the largest 
industrial investment in North- 
ern Ireland since the foiled De 
Lorean car venture. 

It became the subject of con- 
troversy in May, when it 
emerged that the European 
Commission overrode strong 
objections from its own offi- 
cials In approving the UK gov- 
ernment grant 

In bis answers Mr Smith said 
the government had no plans 
to review its derision to assist 
the project, which it had con- 
cluded would not cause any 
si gnificant job displacement in 
the UK. 

Sir David Alliance, chairman 
of Coats Vlyella, Europe's larg- 
est textiles company, has 
warned that “as many as 1,000 
jobs in Lancashire” could be 
lost because of the project 


The government is considering 
abolishing the compulsory 
quota cm employers to provide 
jobs for the disabled, replacing 
it with a framework of legisla- 
tion that would offer protec- 
tion from unfair dismissal. 

The move, which could be 
enacted next year, is one of a 
number of government propos- 
als that aim to strengthen the 
rights of the disabled minority. 

The proposals were pub- 
lished yesterday in a consulta- 
tive document by the Depart- 
ment of Social Security and 


follow attempts by Labour and 
Tory MPs to introduce an over- 
arching civil rights bill for the 
disabled. 

However, while ministers 
said they were prepared to 
introduce piecemeal measures 
next year, the consultative doc- 
ument underlined the govern- 
ment's determination not to 
introduce comprehensive civil 
rights for the disabled. 

Mr Nicholas Scott, minister 
for the disabled, told the 
Commons that a recent private 
member's bill to create such 
civil rights would have a 
compliance cost for industry 


running to at least £i7bn. 

Labour MPs accused Mr 
Scott of having belatedly 
responded to their attempts to 
amend the law. Mr Barry 
Shearman. Labour’s disable- 
ment spokesman, said the doc- 
ument was “piecemeal, partial, 
pathetic, grudging, belated, 
Inadequate - and disabled peo- 
ple wfll not accept it”. 

Ministers said yesterday that 
the measures In the consulta- 
tion paper could be introduced 
by individual Whitehall depart- 
ments npT> year. These include 
a statutory requirement on 
housebuilders to proride facili- 


ties for the disabled in new 
houses and the creation of an 
advisory body, the National 
Disability Council, to monitor 
tiie minority’s rights. 

Abolition of the disabled 
quota, which has been In oper- 
ation since 1944 but is now con- 
sidered unworkable, would be 
at the heart of the changes. At 
present, companies with more 
than 20 staff must employ at 
least 3 per cent of registered 
disabled people. Ministers are 
looking at ways to replace this 
with limited disabled rights 
through statutory legislation 
and industrial tribunals. 


Revenue misses accuracy targets 


By Andrew Jack 


inaccuracies, the figures 
showed. 

To attain its t ar ge ts, the Rev- 
enue is not allowed a single 
error with a tax consequence 
in the returns, which are ran- 
domly selected from across the 
country. 

The survey was conducted in 
a pilot exercise as part of 
efforts to get bills right first 

rime. 


A quarter of self-employed tax 
returns processed by the 
Inland Revenue last year were 
not right first time, according 
to details of a survey released 
yesterday. 

Nine per cent of returns pro- 
cessed for schedule E taxpay- 
ers - employees and pension- 
ers - also contained some 


The accuracy rates were 
below tiie planned targets for 
the year 1994-%, which woe 93 
per cent for schedule E and 62 
per cent for self-employed tax- 
payers. 

The Revenue also released 
details yesterday of three new 
targets for its services to the 
public: to deal with every 
aspect of people's tax affairs 
correctly first time; to answer 


telephone calls in 30 seconds; 
and to deal with repayment 
riaimg within 43 days during 
peak periods and 28 days at 
other Hmps of year. 

It stressed that it was con- 
tinuing to aim for its existing 
objectives: to reply to corre- 
spondence within 28 days and 
to attend to callers to its tax 
inquiry centres within 15 min- 
utes. 



Waterways board 


increases income 


By Jane Martinson 



Lsatr 


Chairman Bernard Henderson tests the commercial water. He admits: “If the current grant suddenly stopped we would go under” 


British Waterways, the 
nationalised body winch runs 
Britain's canals, increased its 
earned income by £3£m last 
year as part of efforts to phase 
out its dependence on govern- 
ment funding. 

Some of the increase came 
from leisure uses such as boat 
and an g lin g licences. The 
board’s annual report, pub- 
lished yesterday, makes dear 
that leisure and tourism, as 
well as the property market, 
are seen as important areas for 
growth. 

The board has increased self- 
generated income by 40 per 
emit in real terms since 1988, 
when it was the subject 
of a critical report by the 
Monopolies and Mergers Com- 
mission. 

Yesterday’s report empha- 
sises the hoard's heritage role 
- it owns more than 2,000 
listed structures and ancient 
monuments and 64 sites of spe- 
cial scientific interest - and 


envisages its development 
along the lines of the National 
Trust 

The board received a £49.7m 
government grant last year, 
ram less than the year before, 
while self-generated income 
rose to £38,1 m. 

Mr Bernard Henderson, the 
chairman of Anglian Water 
who was appointed British 
Waterways chairman in April, 
said that although plans for 
privatisation would probably 
be welcomed by the govern- 
ment and the board he did not 
expect this in the near future. 

He said: “There was no great 
problem in preparing Anglian 
for privatisation because there 
was a will [among staff] to run 
the enterprise themselves. I 
fori the same thing at British 
Waterways. And, if honest, the 
Treasury would love to get rid 
of it toa" 

He denied, however, that he 
had been brought in to prepare 
for privatisation. He added: ”ff 
the current grant suddenly 
stopped we would go under.” 


The government insisted 
yesterday that this week’s 
defence cuts would not be fol- 
lowed by more reductions fa 
the near future, but the pledge 
was met by a sceptical reaction 
from the opposition partis. 
Government officials said 
that following Thursday's 
announcement of more than 
18,000 job losses the Ministry of 
Defence would not be a target 
in the forthcoming public 
round of expenditure negotia- 
tions, which cover the period 
up to 1996. 

They stressed that the £Z.4bn 
procurement package ret out 
this week by Mr Malcolm Rif- 
kind, the defence secretary, 
would not have been feasible 
unless be was was cmlfMpn t 
that he would not be asked by 
the Treasury for further cuts. 

Mr Rifirind yesterday signed 
a £l.ibn contract with the 
defence company Vickers for 
259 Challenger-2 tanks, which 
he said “demonstrates that the 
fi ghting Strength Of the antiarf 
forces is being continually 
increased”. 

Mr David Clark, the Labour 
defence spokesman, said ha 
doubted the government's abil- 
ity to meet its stated defence 
commitments, even after 
Thursday’s announcements , 
which are intended to trim, 
spending by £75Qm a year from 
1996-97 onwards. 

Mr Clark said the gap 
between commitments and 
available funding could rise to 
£3bn in 1997-98 and £3£tm the 
year alter. He suspected foal 
more cuts were planned. 

Mr Menzies Campbell, Lib- 
eral Democrat defence spokes- 
man. said there were “signifi- 
cant omissions” in the 
procurements announced. 

He Baid the armed forces' 
need for support and attack 
helicopters, and for fresh or 
upgraded transport aircraft, 
was more urgent than the 
tanks, ships and submarines 
Mr Rifitind pledged to buy. - 
to Fife MPs, union leaden 
and councillors yesterday 
launched the Minesweepers for 
Rosyth campaign. f 

The base is set to dose as an 
operational dock for Royal 
Navy ships, with the loss of 700 
jobs. Minesweepers and fishery 
protection ships are to be 
moved elsewhere and the loss 
of 1,500 service personnel will 
fait the local economy. 

The base will be kept open 
with more than 900 jobs - 
about two-thirds civilian - 
because of a continuing seed 
far other operations at the 
base, including support for the 
adjoining royal dockyard- 
Akmg with the dam and to 
beep minesweepers at Rosyfo, 
the campaign will lobby for 
extra finaw/rai resources for 
the Fife region. 

fa Exeter about 200 workers 
at a naval stores depot staged a 
walk-out in protest at the 
depot's proposed closure. 


(ure ti 


Straight talker who could ignite the warm-words committee 


The form book was right. Mr 
Tony Blair, the modernising 
shadow home secretary, 
started as favourite to succeed 
John Smith as Labour leader 
and seems certain to win. 

Even Mr Blair’s rivals, Mrs 
Margaret Beckett and Mr John 
Prescott, sound Increasingly 
half-hearted as they repeat the 
well-worn mantra that they 
can win on the final straight 

That would be a huge and 
unexpected upset. But there 
may yet be some excitement 
when the preferences of up to 
4.5m Labour supporters are 
announced on Thursday. 

It looks increasingly possible 
that Mrs Beckett, the interim 
leader, may also lose the dep- 
uty leadership to Mr Prescott 
the rumbustious employment 
secretary. 

If that happens, it will be a 
heavy blow to Mrs Beckett, 
who has campaigned largely 
on hear record as Mr Smith’s 
deputy since the last leader- 
ship election is 1892. 

But it would be a stunning 
victory for Mr Prescott whose 
passionate advocacy of full 


Kevin Brown takes pre-result temperatures in the race for Labour’s deputy leader 


employment has provided one 
of the few highlights in a dull 
campaign. 

Interviewed in the Opposi- 
tion leader’s room at the Com- 
mons, Mrs Beckett admitted 
that it was "perfectly possible” 
that she might fail to win 
either leadership post 

She said: “I am used to going 
into elections that I might not 
win, and having to make my 
case and abide by the judg- 
ment of electorate. There is 
nothing odd to me about the 
fact that I might end up having 
lost both positions. 

“But the party must decide 
on the leadership team it 
wants at the next election. 
Winning is so crucial that if 
the party were to decide that it 
ought to have a different lead- 
ership team then the party 
must be free to make the deci- 
sion." 

Mrs Beckett’s pessimism is 
mirrored by growing optimism 
in the Prescott camp. Rifling 
through hundreds of support- 


ers’ letters in his turret office 
overlooking the Commons, Mr 
Prescott said it was “stagger- 
ing how many people are now 
coming over”. 

He thinks the party will vote 
for Mr Blair because it wants a 
le ad er who can persuade Con- 
servative and Liberal Demo- 
crat voters to switch sides. “I 
am not a strong suitor on those 
grounds,” he said. 

He added: “But if they vote 
for me as the deputy leader, 2 
represent the heart and. com- 
mitment that the party is con- 
cerned about, and it is a syn- 
thesis of those two positions 
from which, presumably, we 
will draw our general direc- 
tion, values and presentation." 

Mr Blair has scrupulously 
avoided giving any indication 
of his preference for the deputy 
leader’s job. But if Mrs Beckett 
does lose there will be long 
faces among Ms entourage. 

In part, this is because of a 
long-standing enmity between 
Mr Prescott and Mr Gordon 


Brown, the shadow chancellor, 
whose hopes of running 
Labour’s economic policy 
mig ht com* to nothing under a 
Blair/Prescott l eade r ship team. 

But it also reflects concerns 
about Mr Prescott's volatile 
personality, which throbs with 
passion and commitment. In 
sharp contrast to the calculat- 
ing but bloodless approach of 
Mrs Beckett. 

Some Blair supporters say 
the shadow employment secre- 
tary Is already prone to embar- 
rassing flights of fancy. Give 
him a leadership role, and he 
will be a loose cannon cm deck, 
they say. 

Mr Prescott is clearly irri- 
tated by this. He repudiates 
many of the more flamboyant 
stories about him - such as 
reports of a row in the Com- 
mons tea-room with Lord Cal- 
laghan, the former Labour 
prime minister, over nuclear 
disarmament 

He Is keen to defend his 
record as a serious political 


oper ato r - leader of Labour’s 
European parliament delega- 
tion from 1978 to 1973; success- 
ftd Cod War negotiator with 
the Icelandic government in 
1976; author of eight lengthy 
pamphlets on Labour's eco- 
nomic and industrial policies. 

He is also no slouch at the 
soundbite str at eg y so dear to 
the modernisers. His slogan. 
Traditional values in a mod- 
em setting” was devised by Mr 
Rodney Bickerstaffe, assistant 
general secretary of the Unison 
public sector union, but It 
could easily have been dreamt 
up by Labour’s spin doctors. 

But wouldn't there be ten- 
sions with Mr Blair over Mr 
Prescott's robust approach, 
and his determination to 
sharpen Labour's image by set- 
ting targets for progress in key 
policy areas such as full 
employment? 

Mr Prescott rebuts this anal- 
ysis with soma force. He is 
clearly fond of his freebooting 
image, and admits disarmingly 


that he has done little to dis- 
courage it “My style fits easily 
into that character ” he says. 

But that doesn’t mean he is 
incapable of knuckling down to 
collective responsibilities, “The 
leader and deputy leader cant 
be at war with each other,” he 
says. The party puts two peo- 
ple into the leader- 
ship ... but at the end of tiie 
day the leader is the leader and 
it is their responsibility to set 
the framework." 

Nevertheless, Mr Prescott’s 
language betrays an impa- 
tience with the Kafr style that 
augurs badly for those who 
think vigorous debate inevita- 
bly spells electoral disaster for 
Labour. 

Noting that people are sup- 
porting him “because they 
think I will say it as it is”, he 
launches into a long critique of 
the “be safe and say nothing” 
approach of Labour’s modern- 
isers, whom he lampoons as 
the “warm-words committee". 

He said: “We have started to 


have soft profiles which have 
Tnadft it very difficult to differ- 
entiate Labour and the Tory 
party- 1 think we can be robust 

about our principles and arguB 
our case. 

“Sometimes you have to Boa 
words to get over difficulties. / 
but the trouble with our side is ^ 
that we have got too caught up 
with the warm- words commit- 
tees ... the warm words 
almost become the policies. I jy 


aunost Decome me poacu*. * 

think the electorate has seen v*“TRap Tc 

through a lot cf this. Vision is . * 5 & T r » 

OK, but they do like the nut* :i s " 

and bolts, and Fm more of a ^4 1.VTv,-.. 

nuts and bolts poBtidan.” fni. V; *-» > 

What will he do if he loses? v " 1 3 

There are people who *»> ' u '-\d ‘ -If 

want to stand for election* >. * - 

because they think they w® *• 

come out a hit weaker because • 

the vote might not be as good 
as they thtoft It should be. 

“I’ve always taken the vfeW -._ 
that if you acquit yourself w . 
you will come out of it stroa- 
ger ... 1 wfll certainly corns ■ 
out of this one considerably 
Stronger, whether I have one « 
the leadership positions or s 
not." 


*OT tCf . 


‘Those seeking summer reading 
for the beach need seek no 
further. . . makes Miami Vice 
appear positively tame!’ 


vCh\v ; 


SUNDAY TIMES 



KEN 


‘Banks, brothels and a high 
body count - it’s all there!’ 




FOLLETT 


FINANCIAL TIMES 


A DANGEROUS 

FORTUNE 


from Pan Paperbacks 






"» s, 


^Sj^S^rcMggJYEEKENP JULY 16/JULY 17 1994 


^ V 


a\c 


Tory MP in 
sacking row 
with whips 


NEWS: UK 


‘yets 


hoard 

:ome 


By Roland Rudd 

The government was yesterday 
embraced in a dispute 'with a 
ministerial aide about whether 
he bad resigned or was sacked 
days before the cabinet reshuf- 
fle. 

Mr Tim Devlin, parliamen- 
tary private secretary to Sir 
Nicholas Lyell, the attorney 
general, said yesterday morn- 
ing that be had resigned over 
planned defence cuts in his 
Stockton South constituency. 

He was immediately contra- 
dicted by Conservative party 
managers who took the 
unprecedented step of saying 
that he had been dismissed for 
his “poor voting- record and 
general ineffectiveness" - 

Mr Devlin, who has the repu- 
tation of being a rebel within 
government, said he was 
‘‘gobsmacked" by the state- 
ment. He accused the whips of 
“vindictiveness". 

With the impending reshuf- 
fle only days away, friends of 
Mr Devlin asked why the 
whips should sack a ministe- 
rial aide when they could 
remove him from, office quietly 
next week. Last night Mrs Mar- 
jorie Simpson, chair of the 
Stockton South constituency 
party, said she believed the 
whips were lying and backed 
Mr Devlin 100 per cent 

The whips’ office said Mr 
Devlin was sacked after he 
missed four important Com- 
mons votes, including two in 
the early hours of Thursday 
morning relating to MPs' 
allowances- They said Mr Dev- 
lin's riigmifififll was ramnWflH 

solely with patty discipline. 

With a majority of IS, party 
managers said they were not 
prepared to allow members of 
government to “cherry pick" 
which votes they were pre- 


pared to attend. The whips said 
the attorney general had been 
kept informed of Mr Devlin's 
dismissal and had accepted 
their judgment Sir Nicholas’s 
office would not comment 

Mr Devlin’s removal gave 
rise to speculation that Sir 
Nicholas might be dropped 
from the government in next 
week's reshuffle. The rumours 
were fuelled by the govern- 
ment’s JmnniTTM-gmwwf- fhaf Mr 
Devlin’s duties were to be car- 
ried out by Mr Gary Streeter, 
Tory MP for Plymouth Sutton, 
who will remain parliamentary 
private secretary to Sir Derek 
Spencer, the solicitor general. 

Party managers denied that 
the affair would have any 
effect on Sir Nicholas’s future. 

Mr Devlin said Sir Nicholas 
had tried to persuade him to 
remain and fi ght Ids comer in 
the government. But he felt 
unable to do so once the 
defence withe paper revealed 
the loss of 384 jobs in his con- 
stituency. 

He said he went to see the 
whips who told him to 
announce that his resignation 
was for personal reasons. "I 
disagreed with that and was 
going to make my position 
clear.” he added 

Mr Devlin has featured in 
newspaper reports about his 
lobbying for the release from 
prison of a man charged in 
connection with drugs dealing 
and who was also alleged to 
have been a police informer. 
The man left the country after 
charges were dropped 

While the publication of Mr 
Devlin’s Tiama in connec tion 
with this case was an embar- 
rassment to the attorney gen- 
eral, government advisers 
marfp j£ clear that it h«H noth- 
ing to do with Ur Devlin’s 
return to the backbenches. 


Future of farm 
body in doubt 


i • i t U‘ i 


V '• ■ 


.. By Deborah Hargreaves 

The government has deferred a 
controversial decision on the 
fixture of the Agricultural 
Wages Board, which sets pay 
and conditions for 180,000 farm 
workers. 

Labour says the board’s exis- 
tence is threatened by govern- 
ment plans to repudiate two 
international conv entions that 
would protect form wages. 

Mrs Gillian Shephard, the 
agriculture minister, told par- 
liament she had received 
advice from employers in the 
Industry that Britain should 
not recognised the two Interna- 
tional Labour Organisation 
conventions as they would 
restrict flexibility in the farm 
labour market. 

Mr Gavin Strang. Labour’s 
,igriculture spokesman, called 
1 Mrs Shephard's move “a shock - 
■ • ng attack on some of the 
owest-paid workers in the 
and”. 

The two conventions, which 
ire accepted in most countries, 
'equire the setting of mini- 
num wages for farm workers 
is well as the guarantee of an 
innual holiday. But the 
National Farmers’ Union said 
he conventions would mean 


there could be do changes to 
arrangements for the next 10 
years. 

The NFU strongly supports 
the continuing existence of the 
wages board. During the con- 
sultation exercise, Mrs Shep- 
hard has received calls from all 
corners of the industry for the 
board’s preservation. 

But she said recent develop- 
ments had forced her to 
rethink. This year’s high pay 
settlement by the board, which 
awarded a <L9 per cent wage 
increase to form workers - 
double the average settlement 
for manual workers - bad led 
many employers to question 
the value of the board. Mrs 
Shephard said. 

In addition, employees' rep- 
resentatives were seeking a 
judicial review of the board 
on the grounds that it discrimi- 
nated against part-time work- 
ers. 

Mrs Shephard said that in 
view of these developments “I 
believe we most pause and 
take stock". 

Mr Strang said the abolition 
or weakening of the wages 
board would drive down form 
workers’ wages, which were 
already 30 per cent below the 
industrial average. 


CONTRACTS & TENDERS 

SUGAR & INTEGRATED INDUSTRIES 
COMPANY "S-IAC." 

12 GAWAD HOSNT SIR. CAXRO/AJLE 
PURCHASING SECTOR 

Announce that the correct date for opening 
envelope for Tender no. 2/6 BELKAS for Pumps for 
Belkas Sugar Project which will be financed by 
SAUDI FUND FOR DEVELOPMENT Loan is 8th 
August 1994 other terms remain unchanged. 


LEGAL NOTICES 


- '>■ ■ YC 

f ! 

nrto 1. 


ItaNflHrfUM 


OS THE MATTER, 09 
CONDOM INTERNATIONAI- GROUT FLC 

in the Matter of 

TW COMMNIES ACT 198$ 

<OnCE IS HEREBY GIVEN tfcu a PatUtoa 
«u o» ifec l»t July |9H pirniicd lo Her 
4ilcnj; , i High Ccwf of Jiultcc tot Ite 
onnrmiiioo of (he ndoctioo at the Shan 
‘icmum Aaxtas of die ifeaw nam'd camptty 
VBHMUm. 

OID NOTICE tSTOMHE* GIVEN An Ac 
ed Femioa fa diRGed » be leant before Mr 
Icgansr Rickie* at Ac Royal Qm of /M bs 
S tood London 4fC2A 3JL M Vnfa^i) the 
TUiJah 1*04 

iNY Creditor or Shareholder of the uid 
coptoj deririoa to meat ifee making of M 
Mer (or the c oBf o nM ip o of Ac add odoo ioo 
4 Shan headm Abeomi Mould appear at lie 
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Graduate 
debt 
up 13% 
to £2,000 


By John Authors 

The level of debt held by 
students on graduation rose by 
13 per cent this year to an 
average of £2,004, according to 
a survey of 2^86 students by 
Barclays Bank. 

The study shows that stu- 
dents are relying increasingly 
on funds from parents - in the 
form of gifts rather than loans 

- and less on hanks. The aver- 
age size of a bank overdraft at 
graduation now stands at £286 

- down from an average £285 
two years ago. They are also 
trying to avoid the govern- 
ment’s student loans 

The average borrowed from 
the scheme was £699, com- 
pared with an average avail- 
able of £1,205. 

The figures suggest that stu- 
dent hardship will increase in 
the next three years, as grants 
will be cut by 10 per emit each 
year, with the balance made 
up by loans. 

Evidence that middle-class 
parents are being forced to 
spend more money on univer- 
sity education for their chil- 
dren, and that the take-up of 
loans is low will intensify the 
pressure on the government 
from academics to reform the 
student finance system, possi- 
bly by allowing students to 
repay loans via higher income 
tax or national insurance pay- 
ments. 

Parents and guardians are 
bearing the brunt, and were 
nominated as th e main sour ce 
of income by 31 per cent of 
| students this year, compared 
to 26 per cent last year. Those 
wanting student grants and 
i nans as their wain source of 
income fell from 61 per cent to 
57 per cent. 

Mo re than 80 per cent of par- 
ents knew about their chil- 
dren’s debt levels, with 85 per 
emit saying they were worried 
by it 

The proportion owing money 
to their parents has fallen 
from 21 per cent to 12 per coot 
in the last two years, as par- 
ents increasingly give money 
on a “no-strings” basis. 

Barclays found that students 
were becoming more “serious- 
minded” about their personal 
finances, with most resigned 
to going into debt, and about 
their careers, with exams over- 
whelmingly cited as the most 
i mp or ta nt issues facing them. 

Those on professional 
courses were most likely to be 
in debt on leaving university, 
while pure sciences graduates 
had the lowest debt levels. 

Students from six institu- 
tions - including old universi- 
ties and former polytechnics - 
were surveyed. The six were 
Strathclyde, Manchester Met- 
ropolitan, S heffi e ld, Warwick, 
Bristol and Westminster. 







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Buffy Gammond with goats from Vanxhall city form which win be on view this weekend at the Lambeth Country Show in Brockwell 
Park, south-east London. The organisers expect the event, featuring showjumping and Jamaican jazz, to attract 100.000 visitors 

Law Society decision challenged 


The Law Society is to be 
challenged in the High Court 
over its refusal to pay compen- 
sation to a company wh ich lost 
thousands in a mortgage fraud 
allegedly involving a dishones t 
solicitor. 

In the first case of its kind a 
judge yesterday gave Mortgage 
Express leave to seek judicial 
review on the grounds that the 
solicitors* professional body 
reached a “fundamentally 
flawed” decision. 

Other mortgage lenders 


which also want to make 
cl aims against the Law 
Society’s compensation fond 
are awaiting the review's 
outcome. 

Mr Robert Griffiths QC, for 
Mortgage Express, said the 
case arose after the company 
funded the purchase of a flat in 
Marylebone, central London, 
using the services of a solicitor 
whom the Law Society now 
accepted was dishonest 

According to a valuation 
report the property was worth 


£160,000 and Mortgage Express 
agreed to loan the purchaser 
£144,150. It was only after com- 
pletion of the sale In December 
1990 that the company discov- 
ered that there had been an 
overvaluation mid it had been 
caught in a “back-to-back” 
transaction. The flat had been 
bought earlier the same day for 
£ 120 , 000 . 

In April 1992, after mortgage 
arrears rose to £10,000. Mort- 
gage Express obtained an order 
for possession. It later sold the 


property for just £72,767, leav- 
ing a total loss with interest of 
£124.021. 

Mr Griffiths said the Law 
Society had unlawfully 
rejected the company's com- 
pensation claim an the basis 
that the money was primarily 
lost as a result of the overvalu- 
ation and the subsequent foil 
in the property market. 

He added: "If the compensa- 
tion fund doesn't pay out it is 
rilffimit to see in what circum- 
stances it will pay out” 


Complex calculations for C&G 


The task facing the 
Cheltenham & Gloucester 
Building Society is a complex 
one. It is having to devise a 
scheme for distributing the 
£U5bn that Lloyds Bank bid for 
the society that will be seen as 
legal by the courts and as 
attractive by its investors. 

The task before the society 
after the High Court ruling 
that certain payments it 
planned to make to members 
were unlawful is reminiscent 
of the sort of mathematical 
problem set in mmnns 
In essence it appears to 
amount to devising a lawful 
scheme where there is the 
greatest possible overlap 
between members who can 
vote and members who are eli- 
gible for cash payments. But 
the smaller number of those 
qualifying for payments means 
that the payments themselves 
should be higher than origi- 
nally intended 
The original scheme 
involved cash payments of up 
to £10,000 to every member, 
including borrowers, as well as 
to others who could not vote, 
such as depositors - people 
with a savings account which 


Alison Smith on the conundrum 
which faces the building society 


did not make them society 
members. 

But Sir Donald NichoBs, the 
vice- chance llor, ruled that c^ ph 
payments could not be made to 
investors of less than two 
yeara' standing, nor to borrow- 
ers, although it was lawful to 
give cash to depositors and 
staff The requirement in the 
1986 BoUding Societies Act for 
high levels of support among 
investors for such a takeover 
to go ahead, makes the task 
more difficult 

While borrowers have to 
approve the move only by a 
staple majority of those vot- 
ing, at least 75 per cent of 
investors voting - or investors 
representing 90 per cent of the 
value of investments which 
carry voting rights - have to 
consent 

The details of a new scheme 
will be announced in mid- 
August but there are a few 
clues already about features it 
might contain. It appears 
unlikely , for example, that an 


alternative way of handing out 
the £500 cash payments to bor- 
rowers will be on offer. 

Tbe voting threshold for get- 
ting consent of borrowing 
members is lower than for 
investors. Borrowers are also 
less mobile than investors, and 
so perhaps more susceptible to 
the long-term benefits of 
accepting the Lloyds* offer, for 
example in terms of the lower 
interest rates they may be 
charged. It is also clear that a 
critical factor will be what is 
known as the q ualif yin g date - 
the date for the start of the 
counting back to establish who 
is of two years’ standing. 

At the end of March, 27 per 
cent of C&G investors were of 
less than two years’ standing, 
but that proportion will 
already have fallen, since the 
society closed to new investing 
members in mid-June, the day 
after the judgment 

There is nnfhmg in p rinciple 
to stop the society setting a 
qualifying date well ahead of 


the announcement of the new 
scheme, thus increasing fur- 
ther the overlap between those 
investors able to vote, and 
those able to receive cash. 

C&G would not necessarily 
have to wait anything like two 
years before the proportion of 
voting investors ineligible for 
cash foil to a level which the 
society’s board believed would 
enable it to win the vote. 

There is a further, slightly 
baroque, twist, which involves 
encouraging relatively new 
investors, and perhaps, bor- 
rowers. to open deposit 
accounts as a way of receiving 
payments. 

There are some difficulties 
with this - for example, the 
Building Societies Commission, 
the sector's statutory regula- 
tor, might well look unkindly 
on such an account if it were 
confined to existing members 
of the society. 

Yet if it were open to any- 
one, the fact that its existence 
was announced before the dos- 
ing date for eligibility might 
lead to the very fluctuations in 
funds between societies that 
the regulatory system has been 
keen to avoid. 


National 
Savings 
continue 
to fall 


The slide in the contribution of 
National Savings to govern- 
ment funding continued last 
month, falling to £405m from 
£424m in May, Scheherazade 
Daneshkhu writes. 

Net receipts in June totalled 
£l94m. with gross sales of 
£825m being offset by repay- 
ments of £63 lm. Accrued inter- 
est amounted to £211m. 

For the first time since their 
launch at the beginning of the 
year Pensioners' Bonds - with 
net sales of £11 6m - last month 
ceased to be the highest con- 
tributor and were supplanted 
by premium bonds with net 
sales of £142m. 

National Savings’ contribu- 
tion to funding for the finan- 
cial year 1994-05 to date was 
£1.4bn at the end of June. 
Finance and the Family, Pg V 

Credit card 
spending up 

The summer sales boosted 
spending in clothes shops and 
department stores in June, and 
consumers appear to be switch- 
ing to credit cards from cash 
and cheques, a survey by 
Credit Card Research Group 
said yesterday. 

Statistics recording all the 
credit and debit card transac- 
tions in Britain showed that 
spending on both jumped 10 
per cent on a monthly basis In 
June to £4.69bn. 

Total spending with debit 
and credit cards was more 
than £27bn in the first six 
months of 1994. more than 16 
per cent than thp same 
period last year. 

Standard Life 
to join P1A 

Standard Life, the UK’s largest 
mutual life insurer, yesterday 
signed up to the Personal 
Investment Authority, the new 
watchdog to protect the private 
investor, in spite of its earlier 
opposition to the regulator. 

Tbe insurer made it clear 
that it was the foot that the 
PIA had become inevitable 
rather than any change in the 
company's views about regula- 
tion which had led to its appli- 
cation to join. 

Uniform jobs lost 

Compton Webb, a Derby-based 
manufacturer of military and 
other uniforms, yesterday 
closed a factory in Newport, 
south Wales with the loss of 
230 jobs. 

The company, a subsidiary of 
Coats ViyeUa,. said there bad 
been “a dramatic decline" in 
the uniforms market, which 
was highly competitive and 
over-supplied. 


OECD supports ‘bold’ reforms of health service 


By John WSman, 

Pubfic Poflcy Editor 

The government’s reforms of the 
national health service are producing 
“increasingly encouraging results", 
the OECD says in a review of the DK 
economy. 

It says the reforms, “a bold attempt 
to introduce elements of competition 
into the centrally-financed healthcare 
system”, have Increased the NHS’s 
efficienc y. 

They have also made hospitals 


respond better to patients’ needs. And 
the fundholding family doctors who 
purchase health services on behalf of 
their patients have done much to 
challenge hospital practices and 
demand improvements. 

The OECD says, however, that the 
government has made little effort to 
monitor the impact of the changes. It 
warns that political pressures over 
the closure of hospitals may weaken 
the process of adjustment 

It says that the district health 
authorities, which purchase health- 


care on behalf of most people, are 
short of purchasing skills. The result 
is t hat f-hangpg in patterns of health- 
care are slow, as districts tend to deal 
with the same hospitals as before 
rather than shopping around. 

Mrs Virginia Bottomley, health sec- 
retary. said it was gratifying that the 
OECD had recognised the achieve- 
ments of the reforms. 

The organisation says that the NHS 
has traditionally delivered healthcare 
at a lower cost than co m pa r able coun- 
tries. infant mortality flnri lifp expec- 


tancy are dose to OECD averages. 

The centralised control of tbe 
health service has been effective in 
holding down costs, the OECD says, 
making the NHS a “remarkably 
cost-effective institution”. 

The report says GP fundholders 
have been particularly successful in 
improving the quality of treatment It 
acknowledges the criticism that fund- 
holding may create a two-tier system, 
but compares that with tbe already 
wide variations in the standards of 
family doctors before the reforms. 


It says: "The answer to potential 
inequity is not to abandon this effec- 
tive form of purchasing, but to extend 
fundholding and GP- based pur chasing 
to cover more patients." 

Mr David Blunkett, shadow health 
secretary, said It was easy for Paris- 
based economists to see the changes 
through rose-tinted spectades. 

He said: “The reality for patients, 
nurses and doctors who experience 
the NHS every day is different, with 
greatly increased bureaucracy and 
falling standards of patient care.” 


VAT on domestic fuel supported 


By Peter Norman, 

Economics Editor 

The government’s contro- 
versial imposition of value 
added tax on domestic fuel and 
power was yesterday given the 
full backing of the Paris-based 
Organisation for Economic 
Cooperation and Development. 

In a generally upbeat review 
of the UK economy the organi- 
sation, which is owned by 25 
industrialised countries, says 
levying VAT on fhel and power 
is desirable for reasons other 
than safeguarding the environ- 

i Twmt- 

The organisation applauds 
the tax because it broadens the 
VAT-base. It suggests that the 
VAT rates on fuel, currently 8 
per cent and due to rise to 17.5 
per cent next April, m ig ht be 
too low. 

It says: “Allowing for the 
environmental costs of energy 
co nsum p tion, an indirect tax 
rate even higher than the stan- 
dard VAT rale could be justi- 
fied on efficiency grounds.” 

Other UK tax changes of 
recent years gain less whole- 
hearted support The organisa- 
tion notes that more taxpayers 
have been shifted into highe r 
marginal tax brackets. In addi- 
tion. the interaction of national 
insurance contributions and 
Income tax has resulted in an 


unfair fan in marginal income 
tax rates for people earning 
about £25,000. 

But in general the organisa- 
tion praises the supply-side 
reforms introduced since the 
1980s to improve Britain’s eco- 
nomic structure, although it 
warns that “the process is by 
no means finished”. 

The UK. it says, “now has 
one of the least regulated 
labour markets in tta OECD”. 
But as elsewhere, “much 
remains to be done to reduce 
poverty traps, notably for low- 
skilled unemployed with 
dependents and those receiving 
hrnidng benefit”. 

The report fleshes out the 
analysis and forecast of the UK 
economy provided in last 
month’s OECD Economic Out- 
look. It says Britain has made 
“major strides” in restructur- 
ing its economy and should 
experience steady growth with 
falling unemployment and a 
manageable current account 
deficit in the next is 
months. 

Inflation should not be a 
problem in the nest two years 
but the Treasury and the Bank 
c i England are urged to remain 
vi gilan t and take preemptive 
action to keep inflation low 
when the economy returns to 
its long-term trend rate of 
growth. 


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The OECD warns, however, labour force in the medium 
that unemployment will still term, 
be unacceptably high and OECD Economic Surveys 
above its natural rate in late 1993-1994: United Kingdom. 
1995. OECD Publications. 2 rue 

It says Britain must continue Andri-Pascal, 75775 Paris 
to Upgrade the skill level of its Cedex 16, orflMSO. 


DISCOVER A NEW 

WILBUR 

SMITH 




'Grand mythic material... the set pieces are 
fabulous in the true sense, and the wider narrative 
careers along as swimmingly as Isis herself 

TIMES LITERARY SUPPLEMENT 

RIVER GOD 

OUT NOW IN PAN PAPERBACK 



8 


FINANCIAL TIMES WEEKEND JULY IdfJULY 17 ISoa 


FINANCIAL TIMES 

Number One Southwark Bridge, London SE1 9HL 
Tel: 071-873 3000 Telex; 922186 Fax; 071-407 5700 

Saturday July 16 1994 

Time for a 
new US tune 


Successful jazz musicians must 
combine the ability to improvise 
with rigorous technique. Though 
neither President Clinton nor Fed- 
eral Reserve Chairman Alan 
Greenspan made a career of their 
saxophone playing, the US dollar's 
recent travails demand much the 
same skills. They are right not to 
keep slavishly to the market beat, 
hut the underlying theme should 
not be forgotten. 

The week ended, better than it 
began; with the dollar rallying 
above its record lows against the 
yen, and long-term bond yields 
below their levels when Mr Clin- 
ton took office. Over the past 18 
months, investors have been lis- 
tening to the US Administration's 
hap hazar d comme nts about the 
dollar. Mr Clinton may hope that 
they are now following his plea to 
judge the dollar by US economic 
fundamentals. But the verdict an 
those is more mixed than he 
implies. 

The president's case against a 
further dollar decline rests on 
three planks. First, unlike other 
major industrial countries, US eco- 
nomic recovery is now well 
advanced, with GDP forecasts 
promising steady growth in out- 
put jobs for tMc year and the 
next Second, inflation remains 
subdued: there is little to indicate 
that a rapid monetary tig htening 
is needed to keep demand in 
check. Finally, the nascent recov- 
eries in Europe and Japan mean 
that the American current 
account deficit, though substan- 
tial. has reached Its low-point and 
should prove less of a worry in the 
months ahead. 

How plausible is all this? The 
administration's projections for 
US output growth in 1994. as 
revealed in last week’s mid-ses- 
sion budget review, remains 3 per 
cent with the pace expected to 
ease slightly in 1995. Most observ- 
ers think that the economy is cur- 
rently expanding somewhat faster 
than this, as evidenced by last Fri- 
day’s leap of 379,000 in die number 
of jobs. Whatever the true figure, 
few would argue that America's 
current problem is anaemic 
growtb- 

Perfonnance fears 

Fears about current US eco- 
nomic performance do not how- 
ever, centre on its weakness. They 
focus instead on the possibility 
that the economy is already com- 
ing up against capacity con- 
straints that will feed through 
into wages and prices. Mr Green- 
span has raised short-term inter- 
est rates four times since Febru- 
ary, by a total of 1.25 percentage 
points. Even Mr Clinton now 
accepts that the current rate of 
4_25 per cent will have to rise 
before the end of the year. 

The two are unlikely to agree on 


the timing of that increase, 
although the president may wish 
to have the ritual outrage of some 
constituents well behind turn in 
the run up to November's House 
and Senate elections. Yet, for the 
moment at least, both do seem at 
one in their opinion that interest 
rates must remain, a lever for 
domestic demand management, 
not for attempted manipulation of 
ihg dollar. 

Recent growth 

Yet many would cite domestic 
reasons for lifting that lever as 
soon as possible. In addition to the 
buoyant employment figures, for 
example, capacity utilisation is 
reaching levels that have histori- 
cally triggered inflation. Against 
such capacity is a cur- 

rently fashionable view that 
recent growth in productivity, 
combined with rapid equipment 
investment, over the last 18 
months is o vert u rning historical 
truths about US economic capac- 
ity. 

Prices and wages may not con- 
tinue to support such optimism, 
but last week’s figures - flat pro- 
ducer prices with a slight rise in 
consumer prices - did not indicate 
the need for a drastic correction. 
In other words, the Federal 
Reserve chairman was given few 
domestic excuses for raising rates 
now rather than at the next time 
the FOMC meets on August 16. 

Where the line between ‘domes- 
tic 1 and ‘foreign' fundamentals is 
getting increasingly hard to draw 
is with regard to the third - and 
shakiest - leg of the Clinton case 
for the dollar, namely, the balance 
of payments. It is the coincidence 
of two events, one familiar, the 
other unprecedented, which has 
caused the trouble. Hie familiar 
one is US structural current 
account deficits, exacerbated by 
faster domestic growth than in its 
trading partners. As tn the early 
1980s, tlfis leaves the US needing 
to attract foreign capital equiva- 
lent to about 2% per cent of GDP 
to balance the books. What is 
unique about the current situation 
is that tiie need for foreign fund- 
ing does not end there. Funds 
must also be found to offset the 
$l30bn of capital the US is cur- 
rently sending abroad, compared 
to an average of only glObn a year 
in the 1980s. 

Mr Clinton may be right to 
argue that the flight from the dol- 
lar has been overdone. But he can- 
not he as confident as he sounds 
that the ftiniinmi»nteie are on the 
dollar's side. Its plight is a 
reminder of longstanding US 
weaknesses. The world's largest 
economy Is trying to achieve rap- 
idly rising individual incomes 
with a net saving rate of around 2 
per cent Mr CHnton should tell 
Congress ft cannot be done. 


T his kerfuffle about sala- 
ries is a peculiarly Brit- 
ish thing , said Mr John 

R fl Pflk, once riiairrnflTi of 

Severn Trent Water and 
recipient of a £512,626 pay-off last 
year. He was reflecting from the 
Carlton dub in London cm the lat- 
est arguments about pay, pensions 
and share options that are swirling 
around the water and electricity 
distribution companies, four years 
on from privatisation. 

Same critics charge that the exec- 
utives of the privatised companies 
are former civil servants who have 
manag ed to get their hands in the 
honey pot; supporters claim that 
they are overworked managers bat- 
tling away in complex industries, 
whose personal merits are only now 
beginning to be recognised. 

The extremes of the debate 
are crude, of course, and do not 
address directly the question of 
whether reward, should be matched 
to performance. But as annual 
reports have trickled out recently, 
and the email print at the back has 
revealed details of remuneration 
and pay-offs, critics have become 
more outspoken: the rewards have 
been outstripping performance, 
they say. 

In the Commons, wanning to the 
theme that privatisation had turned 
into a swindle against consumers, 
Mrs Margaret Beckett, acting 
Labour leader, asked the prime min- 
ister this week: “How can you 
defend the fact that the ^hah-man of 
North West Water got £47,000 a year 
before privatisation and now he 
gets £338.000?” 

Mr John Major defended the 
wate r priva tisation programme and 
said dir ectors should abide by the 
government's strict limits an pay 
increases for public sector workers. 
Meanwhile, Mr David Hunt, employ- 
ment secretary, has been telling 
executives that those who climb to 
the top of the ladder shonld be 
mlndfril of their responsibilities to 
others. 

Water and electricity executives 
might have had an easier time fend- 
ing off their critics but for three 
factors: the recession. Iay-offis in the 
privatised industries, and larger 
bills for consumers. “For a lot of 
people, when they come into the 
industry, what really hits them is 
that they're in a goldfish bowl,” 
said Mr Bryan Townsend, chairman 
of Midlands Electricity. 

Those looking into the bowl see 
plumper and more valuable shapes 
than in recent years. This is true 
even in the goldfish howl of Scot- 
land, where, as in the case of Scot- 
tish Power and Scottish. HydroElec- 
tric, the privatisations were priced 
more parsimoniously than the 
En glish electricity companies, and 
where the chairman and senior 
executives have been a little more 
restrained in taking salary 
increases than some of their 
English peers. None the less, the 
rises were substantial. 

Mr Ian Preston, chfcf executive of 
Scottish Power, has seen his pay 
rise from £63,175 before privatisa- 
tion in 1991 to £255,218 in 1993-94. 
Sir Donald Miller, Scottish Power’s 
first chairman, saw his pay increase 
from £75,873 in 1990 to £203,192 in 
1992, the year he retired. 

In England, at Northern Electric, 
the salary of Mr David Morris, 
chairman, went up in the last finan- 
cial year to £208,000; it was £72,151 
in 1989-90. At Northumbrian Water, 
Mr David Cranston, the chief execu- 
tive, earned £150,000 in the last 
financial year, three times more 
than the company's managing 
director at the time of flotation. 

On top of their salaries, most 
directors and senior executives of 
the privatised companies have been 


It’s better when 
you’re private 

Are the salaries of bosses in former UK 
public utilities justified, ask FT writers 

The utility bosses: cashing in 



Sir Desmond Pitcher 
chairman of North West Water. 
Previous chairman at privatisation 
earned £47,000 


granted options to buy shares at a 
specific price. There is nothing 
unusual in this practice: it is a com- 
mon method of allying hopes of per- 
sonal fortune to corporate perfor- 
mance. But the bonanza has led to 
growing calls from the Labour party 
for an independent inquiry into the 
way the utilities are regulated. 

At Swalec, the south Wales elec- 
tricity company. Mr Wynford 
Evans, chairman, has exercised 
options on 111,510 shares, making a 
paper profit of just under £500,000. 
Mr Henry Casley, chief executive, 
and two other directors of Southern 
Electricity, had paper profits of 
more than £>m in total on the exer- 
cise of 240,000 share options. The 
departure last year of Midlands 
Electricity’s managing director, Mr 
Richard Young, was made more 
comfortable by his possession of 
options which could provide a paper 
profit of more than £500,000. 

There is no doubt tha t , as one 
City utilities expert put it, "many erf 
the privatised company executives 
have gone from being moderately 
comfortable engineers to quite 
wealthy businessmen in three or 
four years.” But the qualification of 
tiie adjectives is significant As the 
observer noted: “There are plenty of 
30-year-olds in the City making 
more money than these guys.” 

The amounts involved are trivial 
compared with the sums made by 
property entrepreneurs in 198690, 
when values were surging. But the 
privatised utilities’ executives are a 
more cautious breed, trained to 
make technical decisions rather 
than to play percentages. 

“When we were privatised - the 
12 En gH fah electricity companies - 
the 12 of us were both chairmen and 


Bryan Townsend 
chairman of Midlands Electricity 
Pre-privatisation salary 262,270 

*at 31.3.1993 


chief executives. Eleven of us were 
long- term in the industry, 10 were 
engineers," recalled Mr Townsend. 
Now the roles of chairman and 
chief executive have been split and 
“virtually all the chief executives 
are engineers, not all of them from 
inside the industry". 

They have in common the fact 
that they seem obsessed with work. 
Mr Alan Smith, managing director 
of Anglian Water, said be had never 
worked harder, never worked lon- 
ger and never worried more than in 
the years since privatisation. 


‘Many executives 
have gone from being 
comfortable 
engineers to wealthy 
businessmen in three 
or four years’ 


Sir Desmond Pitcher, the subject 
of Mrs Beckett's ire as chairman of 
North West Water, uses the golf 
course and opera house as an exten- 
sion of his office. He just hasn’t 
time to he a playboy or anything 
like that,” said a colleague. 

Mr John Seed, chief executive of 
SWEB, the south-west electricity 
company, started work on Thursday 
at 7am, finished at midnight and 
was starting work again yesterday 
at 6am. 

There is little evidence that the 
higher salaries and the grant of 
share options has turned the tech- 
nocrats into hedonists. “After priva- 
tisation my salary increased signifi- 
cantly, but I did not buy a bigger 
house or car. My Ufa did not really 


John Beliak 

ax-chairman of Severn Ttert Water 
£512,628 compensation for 
early retirement £404*829 for early 
termination ol service cortfract and 
21 07,797 tor future pension 
payments. Salary was £230,300 

change,” said Mr Walter Waring, 
managing director of Eastern Elec- 
tricity until 1892. 

Such modesty is characteristic. 
Sir Donald Miller formerly of Scot- 
tish Power has a yacht but did not 
bother to upgrade it when be moved 
off nationalised industry pay. Mr 
Beliak has a rambling country 
house in Staffordshire, but he 
owned it before he joined Severn 
Trent Mr Preston, also of Scottish 
Power, who was taking a day off 
fishing yesterday, “has a smaller 
house in Glasgow than I have”, said 
a colleague, “and a little cottage in 
Dumfriesshire". Mr Townsend 
pointed out: “The big difference fa 
when you retire - if you look at the 
situation under the old regime, we 
wouldn't have been very well off at 
all” 

Yet for all their rather mundane 
aspirations, the executives and 
directors of the privatised utilities 
often attract venom. At the political 
level, the disparity between their 
good fortune and the misfortune of 
those made poor by recession is an 
easy target. In the City there are 
expressions of unease at their sal- 
ary levels. 

“These companies were privatised 
on the cheap as the merchant banks 
did a good job of persuading the 
government how little they were 
worth. They were then given an 
extremely relaxed regulatory 
regime as privatised monopolies. 
The directors were given a wodge of 
share options and the ability to 
sack people, so they got large 
increases in their share prices. So 
everyone’s a millionaire.” said a 
senior fund manager. 

The executives in the privatised 
industries would say this fa a gross 


exaggeration. They are not defen- 
sive about their pay package, “r 
would never have come here for 
£40,000," asserted Mr Michael Hoff, 
man, chief executive of Thames 
Water, who joined the company 
nine months before privatisation. 
"And I would never have recruited 
top people into other positions if the 

company did not pay them proper 
competitive salaries." 

A ttr ac tin g top talent throngb sal- 
aries that compete with the private 
sector has been a crucial Issue since 
the mid-1980s, when the govern- 
meat was seeking to strengthen the 
management of the state utilities. 
Often the incoming managers took 
pay cuts on the assumption as 
the state utilities absorbed private 
sector practices, the pay position 
would be redressed. 

Mr Waring argued that one rea- 
son for the pay rises erf the past 
three years was the government’s 
refusal to pay a fair salary in the 
public sector. It was common for 
senior staff reporting to him to be 
paid 10 per cent more than 'direc- 
tors. “There were discussions whit 
government about adjusting sala- 
ries before privatisation, but they 
would not do it," he recalled. 

A fter privatisation, as the 
water and electricity 
companies went into the 
market for new staff, 
they had to pay market 
rates. This had a ratcheting effect, 
as the wages of existing staff were 
brought into line with the newcom- 
ers. 

The arrival of new staff was only 
one dement of the changes which 
took place in the state utilities fa 
the period before and Immediately 
after privatisation. “As a national- 
ised industry, we had (me paymas- 
ter. These days we have to explain 
our strategy and requirements to a 
wider public,” said Mr John Tysoe, 
for the last year non-executive 
chairman of Yorkshire Electricity. 
That wider public includes share- 
holders, City institutions such as 
merchant banks, the regulators and 
the customer; it is not as cosy as 
being an old-fashioned water 
authority. 

This wider range of functions is 
offered as one justification by exec- 
utives for their higher salary rates. 
They also cite the more complex 
nature of their business. With finite 
profits Beam their regulated, radio - 
stream activities, the companies 
have been diversifying into unregu- 
lated business such as power gener- 
ation abroad, and waste disposal. So 
new and wider skills have bear 
required. 

South West Water hired Mr Keith 
Court and Mr William Fraser aa 
chairman and manag in g director 
just before privatisation. They hare 
not had a pay rise since bat, said 
the company, “they were recruited^ 
for their extensive international 
business experience to manage 
huge capital programmes and to 
deliver to budget and on tints, ft 
was understood that. If they could 
deliver, then the rewards would fol- 
low" 

What these rewards win be is not 
dear. In industries where, as Mr 
Beliak noted, “different companies 
are developing different personali- 
ties", the levds of payment will 
remain a source of contentions 
debate. As they look out of the gold- 
fish bowl, Mr Court and Mr Fraser 
will know that, in the interests of 
peace and quiet, they will have to 
be ahla to justify every penny in 
their pay cheques. 

Report by Roland Adburgbam, 
James Buxton, Paul Cheeseright, 
Stewart Dolby, bn Hamilton Foxy, 
WUHam Lewis, Chris Tighe 


MAN IN THE NEWS: Jacques Santer, the next president o f the European Commission 


Brussels' beguiling 
new Biirgermeister 

Lionel Barber on the Luxembourg prime minister 
chosen to replace Jacques Delors 



M r Jacques Santer is 
known as the man who 
never says no. Nick- 
named “Smiling Jac- 
ques” or “Champagne Jacques”, the 
long-serving prime minister of Lux- 
embourg, who was selected yester- 
day as the next president of the 
European Commission, is a low-key 
operator who avoids confrontation 
and specialises in forging compro- 
mise. 

By drifting towards Mr Santer - 
who was nobody's first choice in 
the contest for Commission presi- 
dent - European Union leaders 
could not have chosen a more dif- 
ferent character from Mr Jacques 
Delors, the volatile visionary who 
has been at its head for the past 10 
years. History will show that they 
have made an important statement 
about the future direction of the 


grand design for European mone- 
tary and political union - all of 
which bore Mr Delors’ indelible 
stamp. 

The risk that Mr Santer’s appoint- 
ment will weaken the institutional 
power and political leadership 
role of the European Commission 
is serious, though senior EU 
diplomats cautioned yesterday 
that it fa premature to pass judg- 
ment. 

Much will depend on the quality 
of the Santer team and the degree 
of support the new president can 
expect from the Franco-German 
avia, a crucial factor in Mr Delors 1 
successes in the fate 1980s, when he 
became synonymous with Mr 
Europe. It will also depend on 
whether Mr Santer, like Mr Delors, 
can grow in the job during, the five- 


year term which he starts on Janu- 
ary 5 next year. 

Born in the small Luxembourg 
town of Wasserbillig in 1937, Mr 
Santer, 57, has spent almost all bis 
life in the Grand Duchy of Luxem- 
bourg. His mighty microstate has 
deftly exploited free trade, open bor- 
ders and a favourable tax regime to 
build a thriving economy near the 
centre of a single European market 
of 340m people. 

Mr Santeris political career took 
off in 1972 when he was appointed 
secretary of state for cultural and 
social affairs. He became iwfiw of 
hfe Social Christian party in 1972, a 
post which he held until 1982. Long 
standing in the shadow of Prime 
Minister Pierre Werner, the intellec- 
tual godfather of European mone- 
tary union. Mr Santer waited 
patiently for the top job which he 
took over in 1984, having held sev- 
eral ministerial posts, including 
finance. 

Mr Santer has 
won re-election 
three times, most 
recently in last 
month's poll. 
Asked about his 
strengths, an old 
schoolftiend who 
has kept in touch 
with the prime 
minister, said: 
“He is not a Slave to his work. He 
does not sit at his desk from 
6am to 10pm thinking he is the 
most important person in the coun- 
try. Yon meet him everywhere, at 
each party. He is accessible to 
everyone." 

Another colleague who knows Mr 
Santer well said that the prime min- 
ister fa a good delegator, with a 
light touch and a tough streak. “He 
will never say no, bat that does not 
mean he lets himself be pushed 
around.” 

Mr Banter's appointment has 
evoked memories of the selection of 
Mr Gorton Thorn as president of 
the European Commission in 1980. 
Ur Thom, himself a former Luxem- 
bourg prime minister, took over 
from Lord Jenkins, the former 
Labour cabinet minister, and served 


without distinction. 

Mr Thorn was overshadowed by 
Viscount Etienne Davignon, the 
powerful industry commissioner; 
and many predict that a similar fate 
could await Mr Santer should' 
heavyweights such as Sir Leon Brit- 
tan, the chief EU trade negotiator, 

retain their posts. 

Yet Luxembourgera who know 
both Mr Santer and Mr Thorn argue 
that the comparisons between the 


two men are flawed. “Thorn was a 
tough guy who had been chairman 
of the United Nations general 
assembly, but he was a poor prime 
minister of Luxembourg- foo ter fa a 
nice guy who has done a very good 
job here.” 

Mr Santer’s record on the Euro- 
pean stage is easily underestimated. 
In 1985, he chaired the negotiations 
leading to the Single European Act, 
pfaying a useful role In persuading 


the then British prime minister, 
Mrs Margaret Thatcher, to drop her 
reservations about the move 
towards more majority voting on 
EU laws. He argued, successfully, 
that the loss of sovereignty was 
worth exchanging for the prize 
of a barrier-free internal 
market 

It was during Luxembourg's six- 
month presidency of the European 
Union in 1991 that much of the 


EU. 

The Santer Commission signals a 
period of consoli- - - 

‘He is not a slave to 
tiou in Europe, a his work. He does not 

Sto the^brtd sit at his desk from 
leaps forward 6am tO 10pm. YOU 
Sy rian meet him everywhere, 
Market the Euro- at each party’ 

pean Economic — 

Area, and the 


groundwork was done for the Maas- 
tricht treaty on political and mone- 
tary union. British officials recall 
that Mr Santer and his team stood 
out in favour of the “pllfar system" 
- the term used to describe tie sep- 
aration of supranational decision- 
making (trade, agriculture, competi- 
tion policy) and looser inter-govern- 
mental co-operation on foreign pol- 
icy, defence, justice and 
Immigration. 

Mr Santer is a federalist - but 
only If it means preserving local 
and national powers in sensitive 
areas. He prefers the old Treaty of 
Rome term, “European Commu- 
nity”, to the new. Maastricht-in- 
spired “European Union”, which 
implies not so much about loose 
co-operation and more about the 
direction of integration. “The big 
difference with Delors fa that Santer 
does not come from the French 
centralising tradition," says a 
colleague of the 
prime minister. 

As Mr Santer 
told the Luxem- 
burger Wort 
newspaper this 
week: “For me, 
federalism 1s the 
opposite of cen- 
tralism. To help 
the process of 
European Inte- 
gration does not mean to usher in a 
Napoleonic Europe. The more 
Europe is decentralised, the stron- 
ger tt is.” 

Such sentiments will endear him 
not only to British Euro-sceptics, 
bat also to the foes of Brussels cen- 
tralism who have become more 
vocal is France, Germany and Italy 
since the agreement on the Maas- 
tricht treaty in December 1991. His 
political beliefs spring from a deep 
conviction that Luxembourg has 
thrived in the EU, precisely because 
it has avoided being submerged by 
a central authority or swamped by 
its larger neighbours. France and 
Germany. 

This conviction explains the 
Grand Duchy’s resistance to Ger- 
man-led calls for an EU-wide with- 
holding tax, which would mean 


scrapping the tax privileges offered 
to foreign savers (and stemming the 
flow of Deutschemarks into Luxem- 
bourg). 

Mr Santer has made dear that 
Luxembourg win only agree to a 
new harmonised tax if it fa 
to other OECD tax havens 
such as the Channel Tsfa nd * 1 . Gibral- 
tar. L ichtens tein, Monaco, mtd Swit- 
zerland. 

“There win be no deal between 
Mr Santer smH Chancellor Kohl (fa 
withholding tax,” predicts Mr 
Lucfen Thiel, general manager at 
the Luxembourg Bankers Associa- 
tion. 

Luxembourg*!* predict that Mr 
Santer will he a tittle more Inde- 
pendent than expected, if only 
because he has been a membra’ <rf 
the exclusive chib of the 12 heads of 
EU government (known as the 
European Council) since 1985. *Ee 
will listen to the big chiefs, but be 
will not be a pup- 
pet on the string 
of Helmut Kohl 
and [French Pres- 
ident] Francois 

Mitterrand." saM 

a colleague. 

Still, there is 

an undercurrent 

of disbelief that a 
country with 
only dOtWOOpej 
pie has supplied a second president 
of the Commission in 14 years* 
Same fear a haritiash against faff' 
embourg, which Is already ovosw- 
resented in terms of lnstitutimfa 
and voting 1 weights hi EU deefakut 
making . 

“A new Bflrgenneister is coming 
to Brussels," summed up one Com- 
mission offlrisl yesterday. 

tafaimess, LSbou tg * 
merely fulfilling Its historical ro*e- 
In the Middle Ages, several counts 
from the House of Luxembourg 
were called upon to serve as succes- 
sive German emperors, herauff 
they were compromise canm®*® 
who came from a country which 
not represent a threat to 

G jS^fr^Sms Bright say: “Pfas P* 
change en Europe.” 


Luxembourgers 
predict that Mr 
Santer will be 
more independent 
than expected as 
president 



JULY 16/JI 

Storms in a 
coffee cup 

Alison Maitland looks at the 
effect of severe frost in Brazil 


C offee drinkers in 
Europe and the US 
may find the pros- 
pect of up to 50 per 
cent rises in the price of a 
packet or ground beans a little 
galling. Por Brazilian coffee 
fanners who have lost some or 
all of their plantations, the 
frosts that have sent the coffee 
market into a frenzy week 
have been little short of disas- 
trous. 

Both farmers and consumers 
are losers on the coffee mar- 
ket's wheel of fortune. On the 
winning side are commodity 
speculators who have made 
millions of dollars as prices 
surged, and coffee growers 
unaffected by the frost whose 
ftiture profits may be helped. 

The combination of last 
weekend’s severe frost with 
another a fortnight earlier is 
believed to have been unprece- 
dented in Brazil, the world's 
largest producer. The damage 
to the crop that will be bar- 
vested this time neat year is 
expected to be the worst since 
a bitter frost in 1975 destroyed 
more than two-thirds of Bra- 
zil's production. 

The prospect of a squeeze on 
supplies sent 
prlees soaring; 
in London, 
robust a beans 
for delivery in 
September rose 
to $4,000 a 
tonne, 230 per 
cent higher 
than at the end 
of last year. 

Even before 
the frosts, how- 
ever, the mar- 
ket had 
climbed nearly 
100 per cent 
this year, 
driven by sup- 
ply shortages, 
dwindling con- 
sumer stocks 
and speculative 
interest. 

The rise has 
been all tbe 
more remark- 
able • because 
prices have been depressed for 
the past four years. Last Octo- 
ber tbe main producing coun- 
tries began withholding sup- 
plies to try' to revive the 
market 

The agreement gave the 
market an initial boost and it 
then gained fresh momentum 
tins year. US investment funds 
provided some of the impetus, 
though Hr Robert MacArtirar, 
head of trading in tropical 
products at Merrill Lynch, the 
US investment bank, in Lon- 
don, says many took profits at 
the end of May, when New 
York arabica futures became 
volatile. He estimates their 
well-timed flirtation with the 
market netted between $750m 
and ?lbn - even though they 
missed the frost-driven rally. 

Coffee drinkers have not 
been so fortunate. The latest 
surge in world prices signalled 
the end of a period when 
self-indnced insomnia was 
cheap, though retail price 
changes tend to lag behind 
world bean prices because 
manufacturers buy stocks four 
or more months in advance. 

Continental European drink- 
ers, who usually prefer ground 
coffee, should see the biggest 
price jump, raw beans account 
for a lower proportion of the 
cost of Instant coffee, where 
production and advertising 
outweigh the price of the 
beans in a jar (see graphic). 

Nestl6 this week raised 
ground coffee prices in the US 
by 13 per cent; and instant cof- 
fee by 10 per cent. In Germany 
some roasters marked np 
ground coffee prices by 28 per 
cent and forecast the total 


Retail price: 154 pence 


Raw coffee 
30p (IS Vo) 


Production & packaging 
32p (21%) 


Marketing & administration 
46p (30%) 


Retail margin 15p (10%) 




Profit before tax 8. interest 
31 p (20 To) 


Estlmatra arebofcra Bnmtai tat apdb 
Sane Mrai flmfcfaro*. Mi New Com 


increase in coming months 
could be 50 per cent 
Donee Egberts, the lpawiing 
brand in the Netherlands, Bel- 
gium and Spain, has raised the 
price of a 2&0g pack of ground 
coffee by 26 per cent since Jan- 
uary and further rises are pos- 
sible. Mr Herman Bouwman, 
director of corporate commu- 
nications, says this year’s 
increases have had no impact 
on sales and points out that 
retail prices are rising from a 
low point A pack of medlum- 
qnality Douwe Egberts coffee 
in the Netherlands today costs 
FI 3.40, compared with FlG.50 
in 1977, two years after the 
devastating frost in BrazlL 
In the UK, where the market 
is dominated by instant coffee, 
prices are forecast by the 
industry to rise by a farther 15 
per cent to 20 par cent in the 
autumn after Increases of 
more than 10 per cent bo far 
tills year. Nestld, which has 58 
per cent of the UK inatant cof- 
fee market, points out that tbe 
average price of a lOOg jar of 
Nescaffi had remained at £1.39 
for four years until January. 
The price had fallen by 13 per 
cent when world prices plum- 
meted 60 per 
cent following 
the breakdown 
in 1989 of an 
export quota 
pact between 
producer and 
consu mer coun- 
tries. 

Not surpris- 
ingly. Nestle 
does not think 
the latest 
increases will 
kill the UK 
taste for coffee. 
"Ten to .15 
years ago, we 
drank four 
cups of tea for 
every cup of 
coffee, ” said Mr 
Mick Casey, a 
Nestle spokes- 
man. “Now for 
every cup of 
coffee, it's just 
over two cups 
of tea.” He adds there was “ho 
consumer resistance” to the 
1 2)4 per cent rise in the price 
of Nescafe in January - 
though : producers are not so 
sanguine about consumers’ 
response in emerging markets 
such as eastern Europe. 

Moreover, the upward pres- 
sure on prices may not last 
World coffee producers could 
be tempted by high prices to 
expand output and improve 
productivity, which some pro- 
ducers fear would lead to a 
repeat of the “boom and bust" 
cycle. New plants take about 
three years to produce a crop, 
so farmers planting now may 
have only a couple of years 
before overproduction pushes 
prices down again. 

“The farmers lose in the 
short term as most have 
already sold their crops for 
this year. In the long term 
they lose because of the 
short-lived nature of the price 
rises,” said Mr Richard Hide, 
coffee buyer for CaKdirect, a 
fair trading organisation 
which guarantees its farmers a 
minimum price. 

CaKdirect is backing calls 
from producer countries for a 
revival of an international 
agreement to stabilise the 
market by setting target prices 
and operating supply controls. 

But consumer countries, led 
by the US, have shown no 
eagerness to discuss such pro- 
posals. Trade negotiators 
argue international pacts 
bring pressure for higher 
prices for producers rather 
than stable prices for consum- 
ers. The coffee market’s roller- 
coaster looks set to hurtle on. 


US policy options over Haiti are increasingly pointing down the path of invasion, says Jeremy Kahn 

human rights groups* said 

stsgSSvsz 


F or the Clinton administra- 
tion. about the only good 
news to come out of Haiti's 
capital, Port-au-Prince, this 
week was reports of bad weather. 
Rough seas buffeted the coast of tbe 
troubled Caribbean nation, slowing 
the tide of boat people and granting 
tbe White House the time it desper- 
ately needs to shore up its Haiti pol- 
icy. 

The island has nettled President 
Bill Clinton since he took office in 
January 1993, forcing on him numer- 
ous about-turns. As more than 1,000 
Haitians a day take to boats to escape 
deepening economic hardship and 
political repression, solutions to the 
crisis are fast running out 
Even as Mr Clinton toured Europe 
this week, the outlaw nation 700 miles 
from, the US coast was demanding his 
attention. US backing for the United 
Nations' trade embargo has so far 
faded to oust the military regime of 
Lt Gen Raoul Cedras, which over- 
threw elected Pres iden t Jean-Bertrand 
Aristide In September 1991, and to 
return Mr Aristide as leader. 

Lt Gen Cedras remains defiant This 
week, he ordered KM UN observers 
out of the country as they were 
reporting increasing human rights 
abuses - including political murders 
and rape. 

If sanctions do not force Lt Gen 
Cedras to step down soon, pressure 
may mount for the US to do more 
than commit itself to laarting a multi- 
lateral force to police Haiti if Mr Aris- 
tide is returned to power. Two consid- 
erations are propelling the US 
towards invading the country of 5.5m: 
first, the swelling numbers of refu- 
gees, and second, the deteriorating 
human rights conditions in Haiti. 

“There are not any other politically 
attractive options short of military 
Intervention," said Mr Eric Melby, a 
former National Security Council staff 
member under President George 
Bush. Mr Anthony Lake, Mr Clinton's 
chief national security adviser, has 
said invasion appears inevitable. 

The US administration 'Haw stepped 
up its rhetoric in recent days, issuing 
thinly veiled threats of military 
action. Pentagon officials acknowl- 
edge the military has already drawn 
up and rehearsed detailed contin- 
gency plans for military action. 

With a four-ship amphibious assault 
group offshore, ostensibly ready to 


No sign of comfort 
in the south 



•us. 

Sa~ 


12 warahtps 

)5 coast guard 



2am*ti*ous 
ana* ships 

2£0Q marinas 

j&Lz* 

plus 82nd AMbomo 

ntukVyi rtamhWSM 




Watershed: US coast guards rescue Haitian migrants off the coast of Haiti 


evacuate US citizens or other foreign- 
ers, the US could be ready to invade 
this weekend, when a command and 
control ship arrives to lead the 
assault group. But officials have said 
privately an invasion is more likely in 
early August, when the US Congress 
- hesitant. Him tbe American people 
about the human and financial costs 
of military intervention - is In recess 
and thus unlikely to cause political 
embarrassment for Mr Clinton. 

Tbe invasion would probably begin 
in darkness, as special forces move to 
secure the airport, presidential palace, 
radio station and port facilities in 
Port-au-Prince, according to Mr Dan- 
iel Gourt, deputy director for politi- 
cal-military studies at the Centre for 
Strategic and international Studies in 
Washington. 

Following these units, the 2,600 
Marines now off Haiti's coast would 
come ashore either by landing craft or 
helicopter to secure the capital. Mr 
GourS said they would be reinforced 
by paratroopers - probably the US 
fl2nd Airborne Division - and units 
trained in jungle warfare, which 
would be responsible for controlling 
the rest of the country. 


Clinton administration officials 
have said it would take between 
10,000 and 20,000 troops to capture the 
island. They would be likely to face 
little organised resistance from Haiti’s 
Ill-equipped and poorly trained army 
017,000. 

It Is the prospect of a prolonged 
presence in Haiti that most worries 
the Pentagon. Mr Court predicts the 
US would have to stay at least eight 
to 16 weeks, while a multinational 
peace-keeping force from Latin Amer- 
ica and the Caribbean under UN aus- 
pices is organised and trained. He 
said there is significant risk that Hai- 
tians, who harbour strong anti-colo- 
nial sentiments, would turn against 
their US “liberators", as happened in 
Somalia. 

With no Haitian tradition of democ- 
racy, the US would have to provide 
much of the physical and political 
Infrastructure for a new government. 
Even then, tbe chances of salvaging 
the poorest country in the western 
hemisphere are not good. 

Given these grim assessments, the 
US state department has been scram- 
bling for a diplomatic solution. One 
option would be to build a reconcilia- 


tion government Including both pro- 
Aristide and pro-military factions. 
“There still is the option of trying to 
support a government of reconcilia- 
tion." Mr Ernie Preeg, a former US 
ambassador to Haiti now with a 
Washington-based think-tank, said. 
That is the least bad alternative.” 

However, state department officials 
said the idea is no longer under dis- 
cussion and Mr William Gray, Mr 
Clinton's special adviser on Haiti, said 
tiie time to negotiate had passed. 

M r Clinton's problems 
with Haiti began during 
the 1992 presidential 
campaign. He described 
the Bush administration's policy of 
repatriating all Haitian refugees 
picked up at sea as “illegal” and 
“immoral”. Soon after he took office 
came the first embarrassment: the 
repatriation policy was maintained. 

Administration officials admit they 
panicked, following faulty intelligence 
reports which led them to believe a 
policy change would unleash 150,000 
to 2004)00 boat people on the US. 

Mr Rick Swartz, a Washington law- 
yer who represents several Haitian 


gees - also lobbied Mr - 
Singly to keep out tbeboatP^, 

Inline tot year, tbe White 
decided to back tbe sanctions to ogP 
speed the faltering talks . 

iSn* regime. The MH 

bring Mr Aristide to the caprtaU £°[L 
au-Prince. in October, the 
reneged on the agreement A U5 
ship discovered an angry 
mob at the dock and Mr Clinton 
ordered it to return home. 

Soon after. Mr Aristide beganto 
criticise US policy toward tbe raw 
gees. After a coalition, of JjJJSJ 
congressmen took up Mr AristM® 
cause, Mr Clinton In May annwmce« 
the appointment of Mr Gray, a proim 
nent former black congressman , as 
special adviser on Haiti- He 
the repatriation policy inherited 

the Bush administration worn® 
change: all Haitian boat people woom 
receive asylum hearings aboara oo 
Navy ships off Jamaica. 

“Under Clinton. [Haitian policy J w 
been driven predominantly by domes- 
tic politics,” Mr Preeg said. “Very nar- 
row Interest groups that are pro- Aris- 
tide have a lot of influence.” 

The new policy prompted more Hai- 
tians to flee by boat, after reports tnat 
30 per cent of those applying for *W- 
lum in ship-board hearings were 
being granted safe haven in the US - 
against 5 per cent at land-based pro- 
cessing centres in Haiti. 

Hoping to discourage the exodus 
and buy time for sanctions, Mr Gray 
announced another change: Haitians 
taking to the sea would no longer be 
given asylum in the US. They would 
be processed under a relaxed standard 
for safe haven in other countries in 
the region, most notably Panama - 
which had agreed to accept 10,000 
boat people. 

Less than a day later, on July 7, tbe 
new US policy was dealt an appar- 
ently fatal blow. Panamanian Presi- 
dent Guillermo Endara. facing strong 
domestic opposition, withdrew his 
offer to house the refugees. At that 
moment, tbe risky invasion which Mr 
Clinton had sought to avoid came one 
step closer 


E nglish local govern- 
ment is about to go 
back to the future - 
or, more accurately, 
forward to the past 
The result of Sr John Ban- 
ham's Local Government Com- 
mission, tbe agency in charge 
of planning the reorganisation 
of English councils, looks 
increasingly likely to be the 
restoration of the system as it 
was before 1974, when local 
maps were last redrawn. • 

That outcome might not 
seem obvious from the contro- 
versial recommendations the 
commission has made so far. 
But with proposals for 33 of the 
36 English shire counties pub- 
lished, the 'survival of county 
councils, albeit in some cases 
without their largest towns, is 
now probable across much of 
the country. Some 30 large 
towns and cities seem set to 
take over all local government 
functions for their citizens, in 


Town hall trench tactics 


John Authers on the (lack of) 
upheaval in English councils 


effect restoring the old county 
boroughs swept away In 1974. 

Ministers are startled by this 
prospect. They intended the 
commission to be the engine of 
radical change. Both Mr Mich- 
ael Heseltine, who set up the 
commission when envir onment 
secretary in 1991, and his suc- 
cessor, Mr John Gammer, 
favoured a nationwide system 
of unitary councils which com- 
bined the functions of counties 
and districts. 

But the mechanism chosen 
for drawing up reform plans 
now looks almost designed to 
ensure ministers' grandiose 
ambitions would not be real- 
ised. Learning from the 
unpopular 1974 reorganisation, 
handled by a royal commis- 
sion, Mr Heseltine decided the 
approach this time should be 
consultative, treating each 
county individually. ' 

Superficially, the commis- 
sion has drawn up a plan in 
line with Mr Hesettine’s origi- 
nal intentions, recommending 


that 22 county councils that 
should be replaced by uni- 
taries. But it is dear such radi- 
cal change will not happen: the 
commission has failed to find 
much support for unitary 
councils and has said the sta- 
tus quo should be an option in 
13 of the counties recom- 
mended for abolition. 

Where change is likely is in 
towns which would regain 
county borough status under 
the commission’s proposals 
and the fastest-growing newer 
towns, such as Milton Keynes 
and Swindon, which will be 
added to that list, mostly with 
support from residents. 

There is also a consensus in 
other areas in favour of 
unpicking the 1974 changes. 
AH counties created by the 
1974 reorganisation, such as 
Avon and Humberside, have 
been recommended for aboli- 
tion, while Herefordshire, Hun- 
tingdonshire and Rutland, 
which disappeared in 1974 
would be reinstated. 

But the commission hit prob- 
lems when trying to construct 
unitary authorities outside 
cities. It believes a minim um 
population of 150,000 is needed 
to make a unitary authority 
financially viable. In rural 
areas, that requires a large 
geographical area. For exam- 
ple, the proposed unitary ver- 
sion of the North Riding of 
Yorkshire would merge four 
district councils and stretch 
almost from tbe North Sea to 
the Irish Sea - dubbed “Sham- 
bleshire" by tbe Association of 
District Councils. 

Mrs Ann Levick, the commis- 


sioner with responsibility for 
Northumberland, said 48 per 
cent of local people had sup- 
ported unitary authorities in 
principle, but “when yon give 
them something specific the 
principle fades slightly". 

This week saw the formation 
of the Save Oxfordshire's 
Southern Borders Campaign, 
which objects to a proposal 
that a unitary Reading author- 
ity should include part of 
Oxfordshire. The Campaign for 
Cornwall - one of the three 
counties for which proposals 
have not been announced - is 
already trying to persuade the 
commission that splitting tbe 
county would “undermine the 
strength of Cornwall's voice” 
and leave the county “vulnera- 
ble to territorial expansion by 
Plymouth". 

Birmingham University’s 
Institute of Local Government 
Studies says the commission's 
attempt to find unitary solu- 
tions is leading it “to argue the 
case for a size of authority 
which will often neither reflect 
local community identity nor 
be able to carry out strategic 
functions”. 

Another obstacle to creating 
unitaries is the cost. Initially 
ministers assumed reorganisa- 
tion would save money. Bat 
the commission’s awn esti- 
mates suggest that some of its 
“first-choice” proposals for 
restructuring counties into 
unitaries could be prohibitively 
expensive. For example, its 
proposal to cut Surrey into five . 
unitaries could cost as much as 
£44m, with annual savings of 
only Elm. 


Banham’s map forCngllsblocal government 

MCcaintiflatotwaboIfelietb: pi Counties with no . 

H status quo not an option -m^^ praposaisUISeptB{Tib«r 

; Avon- . ■ . ‘ ■* - ''mSXm' " CodwwIAScByWss 

Bedfordshire : . ..v*Kx|f'\ . M ertfdr dBh fre 

Barfcshlm • •• ^Shropshire ■ 

^n^dpaaldBS . . ..... ^ ^ 

-.--CwntJria- ’ «taKWw;- : 

.Dors et" ' ; •’ < dary shoe ■ 

.'SSS3S8t/* % ‘‘ * 

Noth Yqrtt sMre - ,- "'■“V- 

■ Shmetset . . • "s/’ 

• a|Unitaiycqiinrifef>rapPBe^ C* 

■"“status qt»6 ad option , i 

Bucktnghwna hfc e ! 

WALES 

. £ast Sussex w 
. Lancashire '■ 

Hereford and Worcas 
Norfolk 

NorthamptonstiJrB 

■ Oxfordshire' . 

• ' • Suffolk . 

‘.SEE ‘ •_ • MBtonKayncsi 

’ ' r V . Northampton 

• v ' tovu * :kt * ,In, ; ' ^ Cities booklet for' ‘ Norwich 
. E® Status quo unitary status ■ 

BSpratomd.oplfcn ' ■ - 

Dotyshtce • Boomemoutfi ..- ffoote 

Devon /CMstchwch ‘ Portsmouth 

tlufanr •• EMgMon Reading 

Breast- • *■ Bristol ... . • Slo ugh ■ - * 

GfouceatarsNre . "darfrifltort * Southampton ' 

Hampstea • Hartlepool . Southend 

' Kant.* - - ttatiVtartfaing • ■« Stocfctan-on-Tees 

. LeteostoreWm •. , Huff . Sftotat-on-ltortt • 

UncotoaHr* -.Ipswich /Newcastfo-under-Lyms 

• Northumberland. Langtaurgh ■ Swtndorv . 

NotttoghrenSilre . Leicester ‘ Warrington • • 

Staffiuid&hftn 1 Litton ■ ' Windsor & Maidenhead 

■ .West Sussex •. Medway towns" ‘‘ ‘ /Wokfogham. 

: Mtddtobrough .York 

a3urv^Loa<gQ»crTWwOt Cc kn>ri&«lonita^En^»>ri 



The review has also run into 
an unexpectedly strong politi- 
cal opposition, which bears 
similarities to the unholy alli- 
ance of unions and traditional- 
ists which thwarted proposals 
for Sunday trading. Local gov- 
ernment unions are opposed to 
the review because they 
believe it would fragment local 


services and endanger jobs. 
The Labour party supports uni- 
tary councils in principle, but 
says it will vote against reor- 
ganisation proposals unless 
guarantees are made for coun- 
cil employees' job security. 

Conservative grandees also 
oppose reform. Mr Douglas 
Hurd, foreign secretary and an 


Oxfordshire MP, supports the 
status quo in the county. All 
four Somerset Conservative 
MPs, including Mr Torn King, 
former defence secretary, 
oppose abolishing the county. 
-The commission also now 
seems to have doubts about 
reorganisation. Sir John him- 
self says: “Any reorganisation 
costs more and delivers less 
than its proponents suggest” 

If the status quo emerges as 
a popular option after the 
extensive consultative exercise 
on which it is now embarking 
(leaflets are being sent to every 
household), the commission 
could drop its mam recommen- 
dations for changes without 
embarrassment. Sir John 
dearly believes this could hap- 
pen. "In all the surveys we’ve 
done, the level of popular sup- 
port for unitary districts in 
shire England is very low 
indeed,” he said last month. 
“People in shire England do 
not want to see a Raiimpfaa- 
tion of local government" 

Perhaps significantly, minis- 
ters have recently gone quiet 
about their desire for unitary 
councils. The review was a 
hopeless vehicle to deliver it in 
any case. As one commissioner 
put it “A leisurely review like 
this might have been used fin- 
some tinkering at the edges, 
but it would be impossible 17 
push through anything more 
radical. ” Opponents will have 
plenty of opportunities to try 
to block changes whan they 
are debated individually in 
Parliament. 

As a result, the new local 
government map will almost 
certainly be very different 
from the one ministers had in 

mind. But as it is due to be 

implemented at about the time 
of the next general election 
they may be grateful that the 
commission has offered an 
escape route from tbe original 
plan for root-and-branch 

reform. 


Technology is road to wealth 
creation in long term 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed ana not hand written. Please set fax for finest resolution 

UK government's plans for senior civil 
servants unwise and should be scrapped 


From Dr Neil A Downie. 

Sir. In his article “Innovation 
Technology" (Economic Eye. 
July 11) Guy de Jonquieres 
expresses doubts about the 
value of new technology. 
Surely he would agree, how- 
ever, that new technology - 
created by R&D - is the only 
long-term source of wealth cre- 
ation. 

After a few decades of devel- 
opment, industry based on a 
single unchanging technology 
approaches a plateau of effi- 
ciency, and the cost and perfor- 
mance of a manufacture 
plateaus too. Without the nec- 
essary (but not, i agree, suffi- 
cient) condition of new tech- 
nology coming along, 
long-term prospects are invari- 
ably limited. 

It is possible for individual 
companies to flourish without 
new technology if they are 
looking for short-term gains, or 
if (toy are small niche firms. 
(No doubt a stone-axe manu- 
facturing plant could still 
today be made a paying propo- 
sition). These possibilities have 
a tendency to blind us to the 
essential role of new technol- 


ogy in wealth creation. 

For the largo- firms, those 
looking for long-term advan- 
tage, and for nation states, new 
technology is esse nt ia l . On a 
national level, for example, 
high technology companies are 
very Important In my own sec- 
tor, that of semiconductor 
equipment manufacture, UK 
companies typically export 75 
per cent of their sales. 

The fact that worldwide gov- 
ernments feel the need to 
inject taxpayers’ money Into it 
is a reflection of the impor- 
tance of new technology, and 
the failure of private industry 
to invest in it sufficiently. 

I fear for the future of UK 
industry if we carry on as we 
are: we have many companies 
bent on short-term returns and 
ignoring investment in new 
technology, and at the same 
time, we have government pol- 
icy decisions which are with- 
drawing taxpayers money too. 
Nell A Downie, 
chief executive, 

JEMIUK 
4 Church Cottages, 

Weybridge Road, 

Addlestane, Surrey 


From Sir Michael Franklm. 

Sir, You are right In saying 
(“Politicians and civil ser- 
vants”, July 14) that the gov- 
ernment's White Paper needs 
to be judged by “the degree to 
which it preserves a non-politi- 
cal civil service that can serve 
governments of any persua- 
sion”. 

If there is a change of gov- 
ernment at the next general 
election, incoming ministers 
will be advised by senior civil 
servants, who will by then 


From Mr Michael Cole. 

Sir, Harrods Bank is and 
always has been owned by the 
department store. Harrods 
Limited, contrary to your 
report of July 12 (“Harrods 
new bank manager”). 


have served a government of 
the same political persuasion 
for an uninterrupted 17 years. 
They will be wffimg and able 
to give unbiased advice. But 
anything which has happened 
to reduce thefr traditional inde- 
pendence can only add to the 
suspicion which they will inev- 
itably face from a new govern- 
ment It would thus be most 
unwise to weaken the tenure of 
senior civil servants at this 
stage. Even a strengthened 
appeal procedure would be a 


Since 1991 the bank has been 
independently managed 
through a trustee. Law Deben- 
ture Trust Corporation, but 
has continued to offer a fail 
banking service to our custom- 
ers. The change followed the 


much less effective safeguard 
of independence than the pres- 
ent appointments system. 

Furthermore, the compari- 
son between the role of senior 
civil servants and heads of 
leading businesses - never 
very exact - becomes less and 
less meaningful as more civil 
service functions are hivefi-off 
or privatised. The role of the 
senior civil servant win be less 
the management of large 
departments and more the tra- 
ditional ones of offering distn- 


publication in 1990 of the 
Department of Trade and 
Industry repent into the take- 
over of the House of Fraser, 
the validity of which we have 
never accepted and which we 
are challenging before the 


te rested advice to ministers 
and watching over the public 
interest There is therefore no 
need to introduce procedures 
which are appropriate to the 
private sector but which carry 
grave risks of political interfer- 
ence if applied to senior civil 
servants. This part of the gov- 
ernment's plans should be 
scrapped. 

Michae l Franklin, 

15 CtaUey Lane, 

Barnet, 

Hertfordshire EN5 4AR 


European Court of Human 
rights. 

Michael Cole, 

director of public affairs, 

Harrods, 

$7-135 Brampton Road, 

London SWlX 7XL 


Harrods Bank independently managed, but owned by the store 


No complaints, whatever 
the ‘human need' 


From Mr Ernest G Gobert 
Sir, I congratulate John Will- 
man on his “dispensation of a 
biblical text” to the bishop of 
Birmingham ("Judge not, that 
ye be not judged”, July 9). 

The bishop obviously aspires 
to the sort of health service 
that existed in former socialist 
countries like East Ge rmany 
Allow me to relate a story I 
heard in Berlin the other day. 

Unwell lady in what was 
East Berlin to a friend in West 
Berlin: “I got my appointment 
with the specialist for last 
Wednesday at 9am. I sat there 
all day. At 6pm they told me 
to make another appointment' 1 
Lady from West Berlin: “Did 



1 uuinflU UtxXl 

Idorecommea 
Germany to 
wants to do a 
"morally wroti| 
tian culture of 1 
is an eyeopenei 
Thank you, Ji 
Ernest Gobert 

3 fl. 


From Mr K MR Price. 

Sir. Hugh Dickinson's article 
on the royal title of defender of 
the faith reveals a slight mis- 
understanding of the relevant 
history (Truth of the Matter, 
July 9/10). Neither Henry vm 
nor the next 10 sovereigns 
made the slightest use of it it 
was resurrected by the pohti- 


Any 




6JW 


FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


COMPANY NEWS: UK 


Hartstone £71m 
in the red and 
calls for f 30m 


By Simon Davies 


Hartstone, the straggling 
hosiery and handbags group, 
yesterday launched a £30-3m 
rescue rights issue, after 
revealing a pre-tax loss of 
£70.7m for the year ended 
March 31. 

The rights issue was long 
expected, as Hartstone had 
committed to repay £25m to its 
principal creditors by October, 
but the stock market reacted 
badly to the level of discount 
for the new shares. Hartstone's 
shares closed lOp lower at 22p. 

The company's problems 
stemmed from Its aggressive 
expansion Into Europe just 
before the recession set In. It 
purchased 20 companies in a 
four year period, but foiled to 
establish adequate financing 
and management controls. 

Hartstone has been forced 
into a programme of asset dis- 
posals, under Mr Shaun Dow- 
ling, chairman, who was 
appointed in May 1993 to keep 
the company afloat 

The rights issue is designed 
to shore up the group’s tat- 
tered balance sheet reducing 
its gearing levels to within the 
permitted maximum level 
under its articles of associa- 
tion, and pay down its princi- 
pal debt 

Mr Dowling said: “The rights 
issue will put the group on a 
stronger financial footing for 
the fixture and will allow the 
team to devote its attention to 
the development of the group's 
core businesses”. This is pri- 
marily its leatherware busi- 
ness. 

Hartstone is offering 215.6m 
new shares at 15p on a 2-for-l 
basis. The issue Is fully under- 


Pelican achieves near 
threefold rise to £2.5m 


By Simon Davies 


Pelican Group, the highly 
acquisitive USM-quoted restau- 
rant operator, yesterday 
revealed a close to threefold 
increase in pre-tax profits from 
£908JM0 to gftJSlm for the year 
to March 3L 

Organic growth came pri- 
marily from the rapid expan- 
sion of the Cafe Rouge chain, 
which now has 20 outlets 
within Greater London. Four 
more sites are currently under 
development and others are 
under negotiation. 

Pelican also benefited team 
the acquisitions of three other 
chains last year, Yankee Noo- 
dle, Jim Thompsons Spice 
Tsi fl p rf Trading, and US restau- 
rant operator Cafe Tu Tu 
Tango. Overall, Pelican now 
operates 47 restaurants, com- 
pared with Just IS in May 1993. 

Turnover more than doubled 
in the year to £L6.47m (£&08m). 
and It will show substantial 
growth in the current year fol- 
lowing the SlLSzn acquisi t ion 
last April of 16 restaurants 
Cram Forte, including the 
DOme caffes. 


In addition, it has Just signed 
an agreement gnahihTg Gran- 
ada to set up diners at its 23 
motorway service stations 
under Pelican’s Rock Island 
Diner brand name. Pelican will 
receive a share of turnover, 
and the first restaurant, in 
Tamworth, Staffordshire, 
should open at the end of July. 

Operating margins improved 
slightly to 16 per cent, but Mr 
Roger Myers, chairman, said 
Pelican aimed to maintain 
margins, and use the improved 
cost efficiency of the enlarged 
group to boost the restaurants' 
competitiveness. 

During the current year Mr 
Myers said Pelican would focus 
on completing the expansion of 
the Caffe Rouge and Dfeme 
chains in Greater London. 
Next year it plans to take its 
first steps in expanding beyond 
the M25, moving into southern 
England. 

Pelican is proposing to lift 
the single final dividend by 14 
per cent to 1.25p (Lip). 

Earnings per share rose by 
225 per cent to 4Jp (4)). 

The shares dosed 2p higher 
at 9lp. 


PSIT 


pic 


PROFIT UP INCREASED DIVIDEND 


Extracts from the statement by the Chairman, 
Mr. A. R. Perry. 

■ Revenue profit before tax rose from 
£8.7 million to £11,7 million. 

■ Investment rents up from £19.6 million to 
£20.8 million. 

■ Further lettings at Chineham and Altrincham. 

■ Several well let properties acquired. 

■ Australian extension completed and 98% let. 

■ New highways under construction on Florida 
land. 


Group property investments up from 
£235 million to £274 million. 


£235 million to £274 million. 

No off balance sheet financing. 

All interest written off against revenue. 

Net asset value rose from £1 .42 to £1.68 
per share. 

Total dividend increased from 4.125p to 
4.625p. 


Results for the year ended 31 March 1994 

EOOO’s 1994 1993 

Total rents receivable 20,892 19,881 

Met property income 19,162 18,630 

snue profit before tax 11,734 8,665 

^holders' fends 196,626 162,519 

[Hiv dividend per share 4.625 b 4.125p 


Shareholders' fends 
Ordinary dividend per share 


P^(fc,FeWOTPatHou»l0ritf 


Kazakhs 
celebrate 
gold rush 
in style 


Enough to give a one-legged stork an ulcer 

Paul Abrahams on the problems for Glaxo as it faces an end to 15 years of growth 


G laxo Is at the cross- 
roads. During the 
1980a the company 
was headed in one direction - 
forwards. 

Its pre-tax profits galloped 
from £66m in 1980 to £1.67bn in 
1993, as a pharmaceutical 
also-ran was transformed into 
Europe's biggest drugs group. 

Growth was based on the 
philo sophy of discovering 
novel medicines, proving they 
were safe and effective, and 
them convincing as many doc- 
tors as possible to prescribe 
them. 

It was a philosophy no differ- 
ent from that adopted by other 
drugs groups - Glaxo was just 
very good at implementing it 
The problem for Glaxo now 
is that its formula may no lon- 
ger guarantee success. 

The relevance of the group's 
strategy has been thrown into 
doubt by the rapid deceleration 
in the world drugs market 
where, according to IMS Inter- 
national, growth has slowed 
from U per cent in 1390 to 7 
per emit last year. 

Glaxo must now show ft can 
adapt to this new lower-growth 
business. 

But, so far, Sir Richard 
Sykes, chief executive, appears 
to have been left stuck on the 
starting block. 

Since July last year, four of 
Sir Richard's rivals, Merck and 
Eli Lilly of the OS, SnnthKbne 
Beecham, the Anglo-American 
group, and Roche of Switzer- 
land. have spent more than 
SISbn (£lL8bn) cm acquisitions 
in an effort to position them- 
selves in the new environment 
ATI tTu» rtoain were designed 
to strengthen the groups' 
respective strategic positions. 
But the methods used to 
achieve this aim were very dif- 
ferent 

Roche's $5.3bn purchase of 
Syntex was a classic horizontal 
acquisition, giving the Swiss 
company greater weight in the 
US and expanding its product 
range in its traditional areas. 

Merck's acquisition of the US 
distribution group Medco last 
July was, by contrast, truly 
revolutionary. It introduced 
the concept of vertical integra- 
tion to the pharmaceuticals 
industry. 

Medco is one of a number of 
the increasingly important 
pharmaceutical benefit man- 
agement companies. PBMs con- 
trol drugs spending through a 
variety of means, but, most 
importantly, through negotia- 
ting discounts and creating 
formularies which limit the 


written by Schraders. 

Of the £30 3m proceeds, £lSm 
will be repaid to creditors, and 
Sl3.lm will provide working 
capital. Charterhouse Bask 
has an option to utilise £2.2m 
of a term loan to subscribe for 
rights shares. 

At the year end, the com- 
pany had net borrowings of 
£6a.6m with 23 banks. This was 
subs tantiall y below the 1993 
level, but due to the write- 
down of assets gearing 
increased to 310 per cent After 
the rights issue, gearing will 
fell to 63 per cent, with net 
debt of SSUim. 

Hartstone remained profit- 
able at the operating level last 
year, and its problems 
stemmed from its disposal pro- 
gramme and the extent of its 
restructuring. 

Turnover from amtinning 
businesses rose by 6.5 per cent 
to £239.4m, although total turn- 
over fell to £368 .9m (£370 2m). 

The group’s core businesses 
of Etienne Aigner and Michael 
Stevens in its le a ther wa re divi- 
sion and Spanish hosiery sub- 
sidiary Aznar all remained 
highly profitable, and total 
operating profit before extraor- 
dinary items and interest 
amounted to £U.7m (H6.7m). 
Last time there was a pretax 
loss of £9.86xn. 

Hartstone paid £10.9m 
(£7 An) of interest Exceptional 
losses came to £71.5m (£18. 7m), 
of which £50.9m represented 
the write-off of goodwill after 
disposals. 

The company is proposing to 
pay a final dividend of 0.32p for 
the year to March 1995, but it 
will not pay a dividend for I 
1993-94. Losses per share 
amounted to 68^p (12.4p). 


By Kenneth Gooding in 
Auozov, Kazakhstan. 


Even by the demanding 
standards of the inte r na tional 
TTiTmnfr industry, this has been 
a great party. Not one, bat 
two public holidays were 
brought forward so that 
everyone in Anosov, a frontier 
town of 6,000 people, could 
celebrate tn style the first gold 
“pour” from the new 
treatment plant at the 
Bakyrcfalk mine. 

Out cm Kazakhstan’s north 
eastern steppes, 1,000 kms 
from the capital Almaty, in 
yurts - the felt tents used by 
central Asia n nom ads - about 
200 TCaatith YIFs Including 
several ministers, dined on 
local delicacies such as boiled 
chpop and fermented 
nnUu 

And looking slightly 
incongruous in this setting 
were about 50 visitors from 
the City of London, watching 
the Kazakh horse racing, 
wrestling and other more 
exotic entertainments lasting 
through the night. 

The London-based investors 
and analysts are here to 
reassure themselves about the 
Bakyrchik gold mine. In the 
past year £ZL5m has been 
provided towards tite first 
joint v en t ure in the gold 
business between a western 
company and this newly 
Independent former part of 
the Soviet Union. 

The money was raised by 
Bakyrchik Gold, a company 
listed in London which has 
40 per cent of the joint 
venture. Some of the proceeds 
have been used to raise annual 
gold o u t put from tile mine to 
45JJOO ounces but also fora 
feasibility study to see if 
modern mining and processing 
methods could boost 
Bakyrdnk's production to 
275JKM ounces. 

Although it promises modi 
- it is on one of the world's 
biggest gold deposits with 
resources of &5m ounces - 
conditions underground at 
the mine are extremely 
difficult The ore is hard to 
process and contains arsenic. 

The feasibility study shows 
the problems can be overcome. 
Before the year end Bakyrchik 
Gold is to go ahead with plans 
to lift production at a cost of 
5125m (£82L2m). Mr David 
Hooker, the chairman, says 
most of the money will be 
raised from shareholders 
because debt offered by banks 
would be expensive and the 
terms onerous. 

Mr Nursultan N aze r b aye v, 
president of Kazakhstan, was 
expected to host a conference 
for the London investors last 
night to stress his personal 
interest in the project. 

He wants it to succeed as 
Kazakhstan needs to increase 
gtdd production to provide 
backing for Its fledgling 
currency, the tenge. He also 
wants more foreign 
investment in Kazakhstan, 
a countr y as vas t as western 
Europe, stretching between 
Russia and China and richly 
endowed with natural 
resources. 


medicines doctors can pre- 
scribe. 

Dr Roy Vagelos, Merck’s 
chairman, claimed the deal 
would remodel not only Merck, 
but also the entire industry. 

In part, this was because it 
would allow Merck to supply 
more of its products to Medea's 
patients. More importantly, it 
would penult Merck to collect 
data, about the cost-effective- 
ness of its treatments - a vital 
factor in an increasingly cost- 
non s?^ f|T|g health “nWwwiinpnf 

Dr Vagelos' counterparts at 
SmithKlme Beecham and Eli 
Lilly were sufficiently 
impressed by this strategy to 
acquire the remaining two sig- 
nificant PBMs. so effectively 
preventing Glaxo from follow- 
ing a similar route. 

At Glaxo, Sir Richard's 
apparent paralysis is all the 
more perplexing because the 
company’s immediate prob- 
lems seem so acute. 

Salomon Brothers are pre- 
dicting that the group's profits 
will fell in 2996 and 2997, aid- 
ing 15 years of unbroken 
growth. 

The main reason for this pos- 
sible profits fell is the gloomy 
prospects for Zantac, the 
world’s top-selling drug, with 
sales last financial year of 
£2.l7bn. 

Zantac's very success has 
made the whole group vulnera- 
ble. Glaxo is dependent cm Zan- 
tac for 44 per cent of group 
sales and probably more than 
50 per cent of profits. 

Glaxo has effectively become 
a one-legged stork, in the same 
way that Roche became depen- 
dent dd Valium during the 
1970s. 

In the old environment, 
Glaxo’s dependency on Zantac 
would not have mattered. Zan- 
tac and its revenues would 
probably have been secure 
until Hs US patents expired in 
2002. Now, threats to the drug 
in the US are legion, and the 
net effect is that some analysts 
believe its sales could peak this 
year. 

Faced with this threat Sir 
Richard and his team now 
appear ready to consider possi- 
ble strategic changes. 

This conclusion has taken 
rime. Mr Ernest Mario. Sir 
Richard's predecessor, is 
understood to have wanted to 
acquire another pharmaceuti- 
cals company, an ambition 
that in part led to boardroom 
disagreement and Mr Mario's 
departure In March last year. 
The man perceived to be most 
opposed to a strategy change, 


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Sir Raul Gloriami, the chair- 
man , is leaving the company in 
September. 

However, while the need to 
change has been recognised, 
the range of options available 
is wide. They include: 

(O Acquiring a PBM. This 
strategy has effectively been 
scuppered by the purchase of 
the three most important 
PBMs by Merck, SmithKline 
Beecham, and Eli Lilly. In any 
case, most analysts argue that 
such a move would not be a 
sensible one for Glaxo. The 
company’s chances of signifi- 
cantly increasing its share in 
the therapeutic areas where It 
is already market leader 
remain poor, and would cer- 
tainly not be worth the 
required Investment- 
• Buying another drugs com- 
pany. Sir Richard could use his 

cash mountain of mare 


£R2bn to help fund the pur- 
chase of a xmanor company, 
active in areas where Glaxo 
does not have a presence. 
Glaxo could absorb the other 
company's sales and reduce 
the combined group's depen- 
dence on Zantac while cutting 
r&D and marketing overheads. 

• Setting up strategic alli- 
ances with health management 
organisations in specific dis- 
ease areas. These organisations 
pay far all healthcare costs for 
members for a set fee. They 
could provide Glaxo with data 
on the effectiveness of various 
treatments. 

• Cost cutting. Some analysts 
are concerned that Glaxo's pri- 
vate medium-term market 
growth forecasts remain too 
high- Glaxo, with its outstand- 
ing product pipeline, expects to 
outperform the market. 

The company could rational- 


ASH ahead 19% but interim omitted 


By Sfmon Dairies 


Automated Security (Hold- 
ings), the international elec- 
tronic security systems com- 
pany, yesterday revealed a 19 
per cent increase in interim 
pretax profits, but announced 
that it would not pay an 
interim dividend. 

This follows a furore over 
the 1993 interim dividend, 
which was paid in scrip form, 
but was not adjusted when the 
shares dropped after a profits 
warning. 

The company said 64 per 


cent of its shareholders held 
American Depositary Receipts, 
and preferred cash to be rein- 
vested in the company, but a 
new dividend policy would be 
developed during the year. 

ASH’S pre-tax profits for the 
six months to May 31 
amounted to £5.79m (£4.8Sm). 

ASH Europe, primarily the 
group's UK operations, 

remained the main engine for 
growth, with revenue increas- 
ing 12 per cent to £59.fin, and 
operating profits qp 5 per cent 
at £X0.1m. 

The US business has suffered 


from a recession-hit Califor- 
nian nmrket, with turnover ris- 
ing only 0.1 per cent to £22.2m. 
Operating profits fell by 8 per 
cent to £3.63m, reflecting an 
increased depreciation charge 
at its APT subsidiary. 

However, US sales are recov- 
ering, and showed a 21 per 
cent increase in the second 
quarter. 

Overall, group turnover 
amounted to £8l.6m <£78-2m), 
while operating profits fell 
marginally to £11.79m. 

ASH is launching a second 
generation TVX system next 


year, which will substantially 
reduce costs for its successful 
alarm verification units. 

The latest figures were 
adjusted for the restructuring 
of the company's $54m (£355m) 
of stapled units, which have 
been replaced with a $55m 
placement of debt 

Previously, interest charges 
on this debt had been 
accounted for as minority 
interests, but £2m (£?..2m) was 
charged as interest in the lat- 
est interim profits. 

Earnings per share 
amounted to 3p (Rip). 


Price 

Waterhouse 
chief goes to 
Charterhouse 


By Andrew Jack 


No Thorn EMI demerger yet 


By Michael Skapinkar, Leisure 
Industries Correspondent 


Shares in Thom EMI fell by 9p to 1065p 
yesterday as Sir Colin Southgate, the 
chairman, dismissed reports that the 
music and rentals group was about to be 
demerged. 

Sir Colin told the group’s annual meet- 
ing that the current group structure was a 
positive advantage and added significant 
value. 

Speculation that a demerger announce- 
ment was close had helped Uft Thom’s 
shares from I039p an Monday morning to 
1074p on Thursday. 

Sir Colin suggested that the board would 
not return to the demerger question 


for a year. 

He said: "As a board, we review the 
group strategy once a year. I am able to 
tell you that at our recent strategy review 
- held over the past two days - the board 
did analyse, in great detail, the strategic 
options for the business. The immediate 
challenge is to capitalise on the excellent 
prospects which now exist for our buri- 


Tbe speculation that Thom would be 
split into two companies - one centred on 
music and one on rentals - arose because 
the group appeared close to completing its 
disposals programme. 

Sir Cohn has said in the past that the 
time to discuss demerger would be when 
Thom had sold the businesses it no longer 


wanted. 

He said yesterday that the group raised 
£192L3m last year from divestments of non- 
strategic businesses, including Thom 
Lighting and its majority interest In 
Thames Television. 

Discussions on the sale of the remaining 
b usinesse s in Thorn Electronics were con- 
tinuing. 

Sir Colin said that once buyers hud been 
found for these, the group's divestment 
programme would be complete. 

The flHafrman also said tha t Thorn barf 
signed a letter of intent to increase its 
holding in To&hiba-EML its joint music 
venture in Japan. Under the agreement, 
Thom's stake in the venture would rise 
from 50 to 55 per cent 


Huntingdon 
may sell two 
businesses 


By David Wighton 


NEWS DIGEST 


Quadrant 
makes flight 
training buy 


increase its interest to 100 per 
cent after five years. 


Investment Company 
net assets increase 


Quadrant Group, the 
photographic and video con- 
cern, is expanding its aircraft 
training activities. 

Through Quadrant Systems, 
its 80 per cent owned offshoot, 
It is acquiring for £L43m from 
Ceselsa of Spain the flight 
t raining business of Aeronauti- 
cal Systems Designers, based 
in West Sussex. 

The company is also setting 
up a Joint marketing activity 
with Binghamton Simulator of 
the US involving the sale of 
the US company’s aircraft 
training systems in the UK, the 
middle east and east Asia. 

Quadrant Systems is a new 
company, 20 per cent of which 
is owned tor Us management 
which has subscribed £150,000 
for its interest Quadrant can 


Net assets per share of the 
Investment Company grew by 
13 per cent from 44ip to 50.8p 
in the year to March 31 1994. 

After-tax revenue advanced 
from £808,338 to £868441 and 
earnings per share came to 
3.l3p (&9lp). The final dividend 
i a again lp for an unchanged 
total of i.5p. 


Small Cap Iwrfrwr showed a rise 
of 1(L2 per cent 
Net revenue for the year 
supped to £L41m (£L43m) for 
earnings per share of 4.98p 
(5.09p). A tower final dividend 
of 2£5p is proposed for a total 
of A25p (5£p). 


General Consol 
net assets fall 


Net assets per share of General 
Consolidated Investment Trust 


fell by 26 per cent to 214Jp 
over the six months to June 30. 
against 290p at the end of 1993. 

Net revenue increased from 
£1.45m to £1.61m largely 
reflecting a substantial 
increase in management fees 
earned by the trust's S3 per 
cent Investment management 
offshoot This was unlikely to 
be repeated in the second half. 

Earnings per income share 
were 4.45p (4.0ip). An 

unchanged interim dividend of 
3J9p has been declared. 


DIVIDENDS ANNOUNCED 


Moorgate Inv Trust 
below benchmarks 


Moorgate Investment Trust 
reported net asset value per 
share up from i40.ip to I62.ip 
over the year to May 31 
The rise of 15.7 per cent was 
loner than the 17.6 per cent 
increase by the benchmark 
Hoare Govett Smaller Compa- 
nies Index. However the FT-SE 


Amicable Srrafl bit 

Automated Sec an 

Hem American Ts Irt 

GenConsfd int 

H ortato ne fin 

investment Co ffn 


Peficanf , 


Current 

pajrment 

Date at 
payment 

Cones - 
pondng 
dividend 

Total 

tor 

year 

Total 

last 

yw 

1.7 

Oct 7 

1.7 

_ 

3.4 

nil 

- 

3J05 

. 

3.05 

0.4 

Aug 30 

0.85 

. 

1.5 

3L9 

Oct 3 

as 

. 

8.71 

na 

- 

na 

nil 

2.8 

1 

Sept 19 

i 

1A 

1.5 

2J55 

Sept 6 

3J3 

4.25 

5£ 

1.25T 

Sept g 

1.1 

1.25 

1.1 


P»M<in ds shown ponce per share ret except where otherwise stated. fOn 
Increased capital. §U3M stock. 


Huntingdon International, the 
life sciences group, is investi- 
gating the sale of its UK-based 
consultancy, Travers Morgan, 
and its engineering and envi- 
ronmental services business in 
the US. 

In May the group armnirnrori 
that it proposed to focus an its 
life science business having 
concluded that the other divi- 
rions did not have the earnings 
prospects originally envisaged. 

They were built up by acqui- 
sition in the late 1980s by Mr 
Bennie Wooley, the chief exec* 
utive, who resigned two 
months ago. 

The group called in Klein- 
wort Benson, the merchant 
bank, to help it identify strate- 
gies for the businesses and is 
now considering the options 
proposed. 

Yesterday the company said 
that it was Investigating with 
Kleinwort Benson the possible 
sale of one or both businesses. 
In the meantime, the manage- 
ment of those businesses 
together with Huntingdon will 
take all necessary actions to 
optimise performance and 
ensure clients continue to be 
serviced at the highest stan- 
dards.” 

Travers Morgan is an Inter- 
national consulting firm spe- 
cialising In engineering, man* i 
agement, transport and ! 
environment. Its profits fell 
from £l-23m to £343,000 in the 
six months to March. 

The US businesses recorded 
an operating loss of £388,000 in 
the first hair 


Mr Howard Hyman, head of 
corporate finance at Price 
Waterhouse, the UK's fifth 
largest accountancy firm, is to 
become managing director of 
Charterhouse, the merchant 

hrni j t. 

The move win come as a 
blow to Price Waterhouse, 
which was planning to 
announce Mr Hyman’s 
appointment as worid heed of 
corporate finance later this 
month. 

Royal Bank of Scotland sold 
90 per cent of its ownership of 
Charterhouse at a loss earner 
this year, with the stakes 
going to Credit Commercial de 
France and Berliner Handel* 
Timi Frankfurter a«nk. 

Mr Hyman, who is 44, will 
also become deputy chairman 
of Charterhouse Bank, the 
company’s banking subsid- 
iary. 

He will be responsible for 
marketing and business devel- 
opment strategy, and the 
development of its European 
corpor ate finance network. 

He has spent the lari few 
years h nfltting up Price Water- 
house's pan-European corpo- 
rate finance network- 

He said negotiations for fee 
move had started relatively 
recently and that he had be® 
offered “a very attractive 
remuneration package. 

“My wuriii aim is to buQd op 
the European side," be said. 


Cardiff 
Property bid 

unconditional 


si s 


.\U' M 

v 


[jilv JK‘i 


ise its US sales force. Bui if 
management has overesti- 
mated its future sates growth, 
the group could be forced to 
make hefty restructuring pro- 
visions. 

Whatever direction Sir Rich 
ard and his team pick, then 
remain questions over the 
management’s ability to imple- 
ment change. 

Glaxo's managers have be® 
successfully focused on 
research, development and 
marketing. It remains unclear 
whether the company, accus- 
tomed only to growth, can cut 
deals and costs. 

One option Sir Richard cax- 
not afford is to stay stationary, 
lie environment, particularly 
in the US, is changing too fad 
for continued Inactivity. 

The sign-posts are easy to 
read; choosing which one to 
follow is more difficult 


diM Nil’ 


S 


to 


Fr 


get tt 


Cardiff Property’s revised 
offer far First Choice Bstato 
has been declared uncondi- 
tional, after acceptances were 
received in respect of 4-$9» 
ordinary <«U7 per cent) and 
722 A ordinary (86.67 per 
cent). . 

To date. First Choice shaTO 
holders holding 31.64 per cent 
at the ordinary and S3J® p» 
cent of the A ordinary 

elected for the part cash alter- 
native. 

This election be* ***“ y, 
extended for a further 21 daT 3 fj, 
until August 4. f 



:i ai Tj s 






FINANCIAL TIMES WEEKEND JULY 16 / JULY 17 1994 



r - - • 

r 1 

9 ‘ _■ . 

1 


IM f 




' * -U-- - ; . 



; ' t _ = . 1 

i 1 ' 1 


21 


INTERNATIONAL COMPANIES AND FINANCE 


US West set to enter cable 
TV with Atlanta purchases 


' 1 ^ 


■ 


By Richard Tomkins 
in New York 

US West, one of the six US 
regional telephone com pan ie s , 
yesterday appeared poised to 
become the first Baby Bell to 
enter the US cable television 
business, after agreeing to buy 
two Atlanta-based cable 
Systems for $i_2bn to cash, and 
shar es 

It has agreed to buy Wom- 
etco and Georgia Cable Televi- 
sion from the privately-held 
Robert M. Bass group, and 
plans to use them to provide 
466,000 households in metropol- 
itan Atlanta with interactive 
information and entertainment 
services. 

US West said the price it was 
paying - $490m in US West 
stock, $i6Qm in as sumpti on of 
debt, and the balance in cash. - 
was equivalent to 11.1 time? 


the systems' annualised fonrth- 
quarter cashflow. 

The acquisition comes 
a whirlwind of activity by US 
media groups, as they scram- 
ble for positions in the fast- 
developing US communications 
industry. 

Earlier this week. Comcast, 
one of the biggest US cable 
television companies, over- 
threw a planned merger 
between QVC, the home-shop- 
ping channel, and CBS, the 
broadcast television network, 
by launching its own $2.2bn 
bid for QVC. 

Yesterdays agreement 
marks the third attempt by a 
Baby Bell to move into the 
cable television business. 

Bell Atlantic tried to t»ki» 
over Tele-Cconmunirations 1 m, 
and Southwestern Bell had 
planned a joint venture with 
Cox Enterprises, but both deals 


collapsed earlier this year. 

Two weeks ago Bell Atlantic 
won regulatory approval for an 
alternative strategy: c o mp eting 
head-on with cable television 
companies by providing inter- 
active television services over 
its telephone wires. 

US West has already entered 
the cable television industry in 
the UK, where it lias a Joint 
venture with Tel&Communica- 
ttonw Inc which provides cabte 
and telephone services in 16 
owned and eight afffi»atgd fran- 
chise areas. 

In the US. US West has a 
25.51 per cent stake in 'nine 
Warner Entertainment, the 
cable-television division of the 
Time Warner media group. 

The two are working in part- 
nership to speed development 
of so-called full service 
networks in the areas they 
serve. 


Eli Lilly net steady at $346m 


By Richard Tomkins 

Eh Lilly, the US drug company 
that earlier this week 
announced the $4bn acquisi- 
tion of PCS, a drug distributor, 
yesterday reported almost 
unchanged net profits of 
$346.8m fra- its second quarter. 

It blamed the lack of growth 
on several factors Including 
higher manufacturing costs, 
increased spending mi research 
and development, and a special 
charge of $10m relating 
to the previous quarter’s 


recall of three liquid oral anti- 
biotics. 

The volume of products sold 
surged tor U per cent, both in 
the US market and internation- 
ally, mainly because of 
increased sales of products 
such as Prozac. Axid and 
Humolin. Turnover, however, 
grew by 8 per cent to $L68bn 
because volume growth was 
partly offset by lower prices in 
the pharmaceutical division. 

Worldwide, Eli Lilly said, 
competitive pressures were 
particularly evident in anti- 


inf ectives sales. In the US, 
lower prices resulted from 
increased Medicaid rebates and 
greater participation in 
managed-care programmes. 

Hie flOm special charge was 
in addition to the charge 
already provided for the prod- 
uct recall in the first quarter. 

Net Income was barely 

ehang pd from the mtnparahTs* 
quarter's $346 ,8m. Ramftig B per 
share were up slightly, to so 
from $1.18. For the half-year, 
net income was down 5 per 
cent to $677 -3m. 


Hoechst says it may close plants 


By Daniel Green 

Hoechst, the German 
chemicals company, said yes- 
terday it might dose plants in 
the drive to return its west 
European fibres sector to profit 
by the end of 1995. 

There were no immediate 
plans for closures, but the com- 
pany's west European fibres 
operations lost between 
DM200m-DM300m ($123m- 

$l84m) last year, said Mr Rang 
Udo Wenzel, appointed a week 
ago as managing director of 
Hoechst Trevira, the fibres 
arm. 


Hoechst Trevira, a new com- 
pany which will employ 5,000, 
is the result of a decision by 
the parent company to concen- 
trate its European fibre busi- 
ness into a wholly-owned but 
separate company. It will start 
operations an October L 

It was created as a response 
to “structural problems in 
western European fibres, tex- 
tile and clothing industries. 
Traditional suppliers are fac- 
ing increasing pr ess ure on 
prices and cheap imports from 
Asia and eastern Europe," said 
the company. . . . 

Earlier this year Hoechst 


said it would cut 2.000 jobs in 
the fibres sector aid introduce 
performancordated pay. 

Mr Wenzel said be could not 
rule out Anther job cuts to put 
the fibre business back an 
track by the end oT lflHL 
• Environmental operating 
costs in Germany in 1993 at 
Bayer were $816-2m. not 
$8L62m as published in a table 
in the Chemicals in the Envi- 
ronment survey (June 30). The 
figure in the total spending col- 
umn should have read 
$i , i(H.i 7m and in the percent- 
age of sales enhimn, 4.45 per 
cent 


Strong sales 
lift Texas 
Instruments 
to $2.5bn 


By Louise Kehoe 
in San Francisco 

Texas Instruments, the US 
semiconductor and electronics 
manufacturer, reported record 
second-quarter results, driven 
by strong sales of semiconduc- 
tor products. 

Earnings were above Wall 
Street expectations, but atten- 
tion focused on TTs prediction 
that growth in the world semi- 
conductor market will “moder- 
ate somewhat” in the second 
half of the year. 

Its shares fell sharply to 
$83% at mid-session, down 
from Thursday's close of $86%. 

Net revenues for the quarter 
were $2£bn. up 19 per cent 
from $2.ibn in the same period 
last year. Profits from 
operations were $29 2m, up 
from $173m, while net Income 
was $184m, or $1_9S a share, 
compared with III 2m, or 
$1.18, last time. 

TI said its second-quarter 
revenues and earnings were 
boosted by its semiconductor 
operations, the company’s 
largest business. 

Semiconductor revenues 
increased by 29 per cent over 
the same period last year, TI 
said, with strong growth in 
memory chip revenues. 

TI also noted double-digit 
growth in sales of application- 
specific and meted -signal semi- 
conductor products. 

“Forces driving the longer- 
term growth of the world 
[semiconductor] market 
remain intact," TI said. “The 
Asia-Pacific region continues 
to he the fastest growing semi- 
conductor market in the 
world." TI is expanding Its 
resources to Asia to meet a 
rapidly expanding customer 
base, the company said. 

For the half-year, revenues 
were $<L96bn, up 24 per cent 
from $849bn in the first half 
of 1993. Net income was 
$318m, or $3.35 a share, com- 
pared with $192m, or $2.04. 

The first-half results injdnde 
a first-quarter $132m pre-tax 
charge for costs of restructur- 
ing TTs European operations 
and the sale of some computer 
product lines. The charges 
were partly offset by a one- 
time gain of $69m from roy- 
alty revenues. 


Telefonica poised to sell Tisa stake 


By Tom Bums in Madrid and 
Andrew Adonis in London 

Telefonica, Spain’s national 
telecommunications operator, 
is negotiating the sale of a 
minority stake in Telefonica 
International (Tisa). the profit- 
able holding company that 
groups its substantial Latin. 
American asse ts The deal is 
likely to be worth hundreds of 
millions of dollars. 

A stake in Tisa, which raised 
first-quarter profits by 89 per 
cent to PtaSAbn ($30 .8m) and 
has a market capitalisation of 
between $6 bn- $7 bn, is an 
attractive proposition to lead- 
ing US operators because of its 
Latin American holdings. 

Tisa groups stakes in 20 
South and Central American 
companies, including local and 
long-distance operators and 
data transmission and mobile 
telephone companies- It is the 
largest single telecoms group 
in the fast-growing Latin 
American market 


TelefOuica, however, denied 
reports that GTE of the US had 
acquired a stake of up to 30 per 
cent in Tisa. “We are talking to 
GTE and to others about alli- 
ances [in Latin America l. . .but 
no agreement has been formal- 
ised," the company said. 

In addition to GTE, Telefon- 
ica is understood to be discuss- 
ing the sale of Tisa equity with 
throe other groups: AT&T, the 
largest US operator; South- 
western Bell, a regional US 
operator, and Unisource, a 
joint venture between the 
Dutch. Swedish and Swiss 
national operators, in which 
TelefOnica itself is to buy a 25 
per cent stake. 

The negotiations come at a 
critical stage in the formation 
of international tpiecnma alii- 
ances. US and European opera- 
tors are manoeuvring to 
become “one-stop" providers to 
multinationals through such 
groupings, in order to exploit 
the rapid opening of telecoms 
services to competition in 


Europe, Latin America and 
Asia. 

Until last month, Tdefdnica 
hart remained tmaiignod in the 
international struggle, while 
strongly resisting the early 
introduction of competition 
within Spain. 

It appeared to have been suc- 
cessful last year, with the 
European Union's decision to 
grant Spain a five-year exten- 
sion to the 1998 deadline for 
competition in basic telephone 
services which was imposed on 
most of the rest of the EU- 

However. last year's $5JSbn 
alliance between British Tele- 
communications and MCI, the 
second-largest US operator, 
and the launch of AT&T’S 
Worldsource international ven- 
ture, left Telefonica feeling 
exposed. Earlier this month it 
joined Unisource, which at the 
same time forged a partnership 
with AT&T. 

The Spanish government 
also agreed to waive its five- 
year extension on the 1998 


competition deadline, a deci- 
sion endorsed by Telefonica. 

Mr Bill Coleman, analyst at 
James CapeL the UK securities 
house, believes Telefonica, 
which owns 78.2 per cent of 
Tisa, is considering the sale of 
up to 10 per cent of Usa via an 
issue of new equity which 
could raise between S60Qm and 
$700m. 

A second route into Tisa for 
potential strategic partners 
could also be opened through 
the possible disposal by the 
Patrimonio del Bstado, the gov- 
ernment’s portfolio group, of 
the 23.S per cent stake it holds 
in the company. 

A decision is expected 
shortly. The Patrimonio could 
either float its Usa equity or 
sell it directly to one or more 
of the operators that are 
talking to Telefonica. 

Either way, the Patrimonio, 
which is also Telefonica's larg- 
est single shareholder with a 
KL2 per cent stake, st and s to 
raise some $1.5bn. 


NEC aims for Y200bn profits 


By MfcMyo Nakamoto In Tokyo 

NEC, the Japanese electronics 
company, is arming to increase 
pre-tax profits to more than 
YSOObn ($l.9bn) by 1999, or 
eight times last year’s leveL it 
also intends to raise overseas 
sales to 48 per cent of total 
revenues over the same period. 

The profits target would top 
NEC’s previous record of 
Yl74bn, achieved in 1990. In 
the fiscal year ended March, 
the group made consolidated 
pre-tax profits of Y25.1bn and 
is forecasting profits of YSObn 
in the year to next March. 

The proportion of overseas 
sales targeted would also be a 
record for NEC, which cur- 


rently derives about 24 per 
cent of sales overseas. 

In a speech commemorating 
the company's 95th anniver- 
sary, Mr Hisashi Kaneko, 
NEC's new president, outlined 
the strategy for achieving 
those goals. 

While restructuring and cost- 
cutting will contribute to the 
increased profits. Mr Kaneko 
expects new businesses, partic- 
ularly in multimedia, to be a 
significant contributor to 
profitability. 

The company is a leader in 
advanced mul tim edia technolo- 
gies. such as screen technolo- 
gies. and its business centred 
on monitors for workstations is 
already worth more than 


$lbn, the company said. 

To achieve its goal of becom- 
ing a front-runner in multime- 
dia. NEC plans to create an 
“internal information high- 
way". It will also place more 
emphasis on services and soft- 
ware, such as systems solu- 
tions. application software and 
global information services, 
along the lines of Internet 

Mr Kaneko said the market- 
ing framework needed to be 
revamped to create a structure 
more responsive to consumers’ 
needs. 

As markets become increas- 
ingly global, NEC expects over- 
seas sales to make up a larger 
proportion of overall sales. By 
next March, for example, more 



Hisashi Kaneko: more 
emphasis on services 

than half of NEC's output of 
ILm 4-megabit D-Ram chips 
chips will be manufactured 
outside of Japan. 


Sanyo Electric ahead despite ‘difficult’ market 


By Gerard Baker in Tokyo 

Sanyo Electric, the Japanese 
electronics manufacturer, 
reported higher sales and prof- 
its for the half-year to the end 
of May, but warned that the 
domestic environment 
remained diffimh: 

The parent company 
reported pre-tax profits higher 
by 213 per cent at Y6.8bn 
($66m) on turnover up by 0.6 


per vent at Y50&9bn. However. 
Sanyo said weak demand for 
domestic capital investment, 
sluggish personal consumption 
growth, and the sharp appreci- 
ation of the yen had combined 
to make trading conditions 
difficult 

The company has reported 
an operating loss for the past 
two years, and in the first six 
months of the year, the operat- 
ing figure was again in the red 


at YSJSbn, against last year’s 
YiZBbn. Profits on stock sales 
of Y9£bn accounted for the 
profits at the pretax leveL 

Domestic turnover was 
higher by 2.6 per cent at 
Y342£bn due largely to strong 
sales of semiconductors, colour 
televisions and commercial 
refrigerator display cases. 

Exports fell by 3.4 per cent to 
YiSl.lbn as the company 
shifted production overseas. 


The growing strength of the 
US and south-east Asian econo- 
mies helped bolster exports, 
but European markets 
remained stagnant. 

Group pre-tax profits rose by 
195 per cent to Y7j8bn on turn- 
over up 4.8 per cent at 
Y767.5biL 

After tax, the group reported 
a profit of YlAbn. compared 
with a loss of Y2-7bn in the 
same period last year. 


nil led !! na ', 

W :lUTh=. 


( lump 



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INVESTORS 


THE CITY INSIDE OUT 









12 


FINANCIAL TIMES WE EKEND JULY 16/JUL Y 17 1994 


WEE * IN THE MARKETS 

Coffee trade 
stays on 
frost alert 

London coffee traders proved 
reluctant yesterday to leave 
themselves <»T pn$<?d to the pos- 
sibility, however remote, of a 
third damag ing frost hitting’ 
Br azilian growing areas Rife 
weekend. Having followed New 
York lower in early trading, 
the market gradually clawed 
back losses and by the close at 
the London Commodity 
Exchange September delivery 
robusta futures were quoted at 
$3,830 a tonne, up $24 on the 
day. That was $255 below 
Wednesday's 8’4-year peak but 
still $760 up on the week. 

Weather forecasters saw lit- 
tle prospect of a repeat of last 
weekend's Brazilian frost, 
which, together with the one 
that hit two weeks early, is 
expected by some analysts to 
cut the country's 199506 coffee 
crop to below 15m bags (60kg 
each) from the 25m forecast 
previously. But traders were 
taking no chances, especially 
as next week will bring a new 
moon, which is often associ- 
ated with frosty weather. 

The retreat from the highs 
had been heavily influenced by 
technical considerations - 
Monday's opening leap left a 
huge “gap" in the charts - but 
it was also encouraged by 
expectations, later confirmed, 
that the Brazilian government 
was about to reopen export 
registrations, which had been 
closed while it assessed the 
extent of the frost damage. 

The cocoa market has been 
very much in coffee’s shadow 
of late, but the £1.073 a tonne 
reached by the second futures 
position yesterday was the 
highest since it hit a 6 '/«-year 
peak of £1,085 in May. And it 
would certainly have exceeded 
that level had in not been for 
the slide in the value of the 
dollar since then, which has 
held back London's sterling-de- 
nominated cocoa prices. The 
price finis hed at £1.066 a tonne, 
up £50 on the week. 

At the London Metal 
Exchange prices were gener- 

WEEKLY PRICE CHANGES 


ally modestly higher on the 
week, with overhead resistance 
frustrating attempts by the 
copper and aluminium markets 
to move into higher ranges. 

Copper's three months deliv- 
ery price was forced to retreat 
once again from the 52,500-a- 
tonne barrier yesterday after 
matting profit-taking and liqui- 
dation selling. It closed at 
$2,483.75 a tonne, up $16.25 on 

Meanwhile the three months 
aluminium price, having flirted 
with its near-term target of 
$1,550 a tonne, a 39-month 
high, settled back to $454150. 
up $5 overall. 

The earlier rises in these 
metals had been encouraged by 
news of further drawdowns 
from their LME warehouse 
stocks. Aluminium's 11.625- 
tonne fall was the ninth in suc- 
cession and took the total to 
86,550 below its record level of 
June 10. 


(As at Thursday's (Sosa) 
ton nos 


AturrVnkjrn 

AhjnHun afloy 

Copper 

Load 

NtoSei 

Ztac 

Tin 


-HAS 10 2571,126 
-420 10 28,180 

-3.425 to 342.125 
-175 to 355.200 
-54 to 132*48 
+3.425 to1.2tn.0S0 
+235 to 30.905 


Zinc's stocks continued to 
rise, but that did not prevent it 
participating in the market's 
overall firmness. The three 
months price was yesterday 
able to consolidate its break 
above 81.000 a tonne, closing at 
$1,008.50, $6.50 off the day's 
peak but $26 up on the week. 

The gold price rallied yester- 
day in defiance, dealers told 
the Reuters news agency, of 
technical and fundamental fac- 
tors. “After support held on 
Thursday I think a few people 
who were short and lacking 
the courage of their convic- 
tions started buying back." one 
explained as the price finned 
to $385.20 a troy ounce, up 
$L 8 Q on the week. 

That performance helped sil- 
ver to erase earlier losses and 
platinum to extend its rise. But 
all were outshone by palla- 
dium. which reached a five- 
year high as increased Japa- 
nese physical demand coin- 
cided with a perceived tighten- 
ing of Russian supply. 

Richard Mooney 



Latest 

Change 

Year 

1994 


pifcfla 

on weak 

ago 

H0h 

Low 

Gold par boy oz. 

S38S20 

*1.80 

$39350 

$39050 

$369.50 

Sffver per troy oz 

335 JOp 

-4^0 

339.85p 

384.50P 

3353)p 

AfcxnHum 99.7% (cash) 

$1529.50 

*7 

$1185.5 

SI 529.60 

$1107.50 

Copper Grade A (cash) 

52471.00 

+323 

$1814.0 

$2471.00 

SI 731 50 

Laad (cash) 

$592.00 

+105 

$391 JO 

$5405 

5426.0 

Nicker (cash) 

S6375.00 

+1815 

$5010.0 

$6490 

$5210.0 

Zinc SHG (cash) 

9986.00 

+26.5 

S82S.0 

$1014 

SB00J5 

Tin (cash) 

SS44S 

+140 

$4995^ 

S56S0.0 

$4730.0 

Cocoa Futures Sep 

El 088 

+52 

E7B7 

El 068 

Cush 

Coffee Futures Sep 

$3828 

+752 

SB77 

$3828 

$1175 

Sugar (LDP Raw) 

S297.3 

*73 

$2533 

$309.4 

$252.9 

Barley Futires Nov 

El Q2.00 

+015 

El 0535 

£10100 


Wheat Futures Nov 

El 03.00 

-0.90 

£107.65 

6117.50 

£97.80 

Cotton Outlook A index 

80.70c 

-075 

58.10c 

87.10c 

82.45c 

Wool (84s Super) 

421p 

-5 

346p 

428p 

342p 

04 (Brent Bland) 

S17.78X 


$10.66 

$18.06 

$13.16 

Par tome ix+ero rttorelea stated, p PwicrtOT c Cants to * 

Sap 




COMMODITIES AND BOND PRICES 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices Mm Amalgsmated Metoi Trading) 

■ MJUMMUM, 99.7 PUHTY (S pet tonm) 


Precious Metals continued 

■ SOU COMEX (100 TYoy ok S/trey oz-) 

set D*r* Open 

prfea change tear u v 


Cart 

CtaH 7S29-30 1544-tf 

Prevkxra 1525-6 1 542-3 

Ugh/tow 1535 155071540 

AM Official 15343-00 154734.0 

Kerb does 1641-2 

Open fnt 294,851 

Tort Oeffy turnover 62,340 

■ ALUMOTUM ALLOY {$ per tome/ 

Ckaa 1515-25 1535-40 

ftavfchta 1510-15 15304 

HgMow 154V! 535 

AM Official 1523-33 1545-50 

KrabtiOM 1530-40 

Open InL 2,770 

Tort daffy turnover 486 

81 LEAD (S per tonne) 

Close 5*1.5-25 602-3 

Protean 6893-73 5S7-7.S 

HlgMow 609/800 

AM Official 5943-53 805-6 

Kart? ctow 004-5 

Open tot 42,270 

Total daffy turnover 9.060 

■ fflCKB- {$ per tonne} 



JH 

3BU 

. 

. 

. IK 


3 inflii 

Art 

3613 

+10 

3816 

3847 70218 21.243 

7544-45 

tap 

3873 

*2J> 

- 

- 

* 

1542-3 

Oet 

3995 

*ia 

3695 

3875 1437 

412 

1550/1540 

Ok 

3917 

410 

3925 

3915 34217 

158* 

1547.5-8.0 

Fab 

388.1 

+10 

3955 

3946 #024 

1236 

1641-2 

TaW 




156,633 SX4S7 


■ PLATMUM NYMEX PO Twy on S/troyatj 


JH 

4112 

*45 

_ 

1B0 


Oet 

417.7 

*48 

419JD 4135 11214 

2571 

Jk 

4215 

+45 

4225 4115 

1«9 

278 

Apr 

TOM 

4246 

*45 

4240 4215 

7565 

aw* 

211 

1160 

■ PALLADIUM NYMEX {100 Troy at; STroy «.) 

tap 

i4#sa 

+140 14855 14755 

4.688 

321 

Ok 

"740 

*115 

f 46.00 74750 

879 

119 

Ura 

Tort 

14750 

*115 


119 

5585 

5 

443 


Cion 
Previous 
HltflAow 
AM Official 
Karb etoae 
Opm Int 

ToM daffy t urn over 
■ TUtff par tonne) 

Ctoee 
Previous 
WtfVtaw 
AM Official 
Karts don 

Open bit. 

Total (My turnover 


8370-90 8460-85 

6290-300 6350-6 

6500*400 
6355-60 6455-57 

8490-600 

80315 

13/081 


■ 38.W3I COMEX (100 Troy 02; Caroamoy oa-)_ 

M 5844 *7.8 SS2JJ 519* 3*0 59 

Aag SU *72 - 5 * 

Sap 9274 *74 5294 S214 79491 19.715 

Dk 5948 +74 537 J) 5280 25X70 2415 

Job 538.4 *72 - - 33 

M8r 5424 +74 5444 5405 6381 X 

ToM 128230 214E0 


ENERGY 

■ CRUDE OB. NYMEX (42,000 US 1 


Ctoae 5440-50 5505-10 

Previous 5365-75 &42S-3S 

HtflMow 5616/5450 

AM OfflcW 5420-30 5485-90 

Kerb cfcm 6500-05 

Open bit 18,993 

Total daffy turnover 4264 

■ awe, special Mgh yade g per to me) 

Ctoaa 9664-64 1008-9 

Protoua 971.5-24 995-6 

hflgh/tow 968 1017/1007 

AM Official 9854 1009-10 

Kerb don 1009-10 

Open tot 102388 

ToM dally turnover 26461 

■ COPPSl, grade A ($ per tome) 


toted Oar* Opra 

prtoe dregs lot u m 

M 20.02 -0.16 2840 1943 61.453 43 410 

Sap 1947 -047 19.77 1940 90.778 46494 

Oct 18.17 -046 1932 1946 40440 11.102 

Kav 1844 -0.13 1649 I860 29.195 4.322 

DK 18.70 -0.12 1870 1868 40459 4.866 

Jaa (875 -009 1848 1841 23427 1493 

Total 4Z74»1174» 

» CWJPe OIL g>£ (S/harre 8 

Latest Oar* Open 

pric* dregs Hffi In U m 

Sap 1744 -045 1845 17J3 644=8 11400 

Oct 1743 -004 1740 1744 15,918 29442 

HOT 17.49 -044 1741 17.41 8.722 3494 

Deo 17.40 - 1748 1745 12,035 1.195 

Jmt 174 T -041 17.41 1741 4.727 707 

Fab .... J433 29 

Tort 117482 48473 

■ hEATWOOa.lWC{(42JOOUSBsa^6U5(^ 

leant Bay's Open 

price donga Ug6 Los tat Vd 

Art 5056 +008 5040 5000 25401 9.961 

Sap 61 JS -005 51.40 5090 23456 6415 

Oct 6240 -015 5245 5140 10652 1.191 

Bov 5840 -0.10 5340 5340 9481 761 

Dec 5445 -040 54.15 5340 19425 I486 

JSD 54,60 -040 5440 5440 12,141 983 

TDM 1 23.648 23421 

■ QAS OL PE {Stand 


Ctoae 

24705-15 

24835-40 

Previous 

2466.5-75 

2482-3 

HlgMow 

24775 

2496/2*76 

AM Official 

2477-75 

2491-2 

Kerb dose 


2478-9 

Opan Int 

232.681 


Total daffy tunover 

37510 


■ LME AM Official S/S rata 15681 



LAC Ctodng a» rata: 148827 

SpOt14590 3rtte1456l 6tmhKl4578 900*13570 
■ WGH OBAD6 COPPBt KXTMSq 

Oafs Open 

Quae cba>?« Mgfi low M Vel 

Jri 11240 -015 11240 111.70 2475 309 

Aug 112.15 -015 112-10 112.10 887 3 

Sap 11240 -045 11X40 11240 33,028 8332 

Oct 112.10 -040 - 335 11 

NOT 111.95 - 345 5 

Dec 111.15 -040 11210 11140 9424 2486 

TOM 52445 11,581 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(Prtoee Exvftiaa by N M Rcthschffd) 

Odd (Tray oz.) 3 price £ equv. 

dose 36540-385 AO 

Opening 384.70-335.10 

Morning Ox 384.850 246.730 

Afternoon fix 384400 246.699 

Day's tfgh 38S.4&-3808S 

Dev’s Low . 384.60 884.90 

Previous dose 383X0-38330 

Loco Ldn Mean Gold Laming Rates (Vs USS) 

1 month — ..<06 6 months 442 


Gold (Troy oz) 
Close 
Opentag 
Morning Ax 
Aftamoon fix 
Day's rtgh 
Day’s Low . 
Previous dose 
Loco Ldn Main 

1 month — _~- 

2 months 

3 months 
Hlvor Rx 
Spot 

3 months 
6 n gntfra 
1 year 
Gold Cable 
Krugerrend 
Maple Leaf 
New Sararefpi 


Mg 15540 -140 15840 15525 1 445 5.629 

Sap 159.75 -145 1B04Q 15850 23833 7473 

Oet 181.75 -140 16175 161.75 12460 3405 

NOT 163.79 -145 194.75 16440 10440 1451 

OK 16540 -145 16740 16540 7466 154 

Jan 16640 -140 16840 16640 14469 <06 

TOM 86.182 1X579 

■ NATURAL QAS NYMEX (10,000 ranBtn; ManjrtJ 

tatrt Bay* Opan 

prta dnag* Up in U M 

Al« 1.330 -QJH7 1478 1425 15.799 9465 

Sap 1492 -0430 2433 1490 13403 3,183 

Oct 2450 -0022 2470 2445 10,474 1445 

ROT 2150 -0017 2155 2150 9484 505 

Don 2260 -0007 2265 2260 K238 1420 

JM 2260 -0407 2275 2265 9408 747 

TaW 108418 20887 

■ UNLEADED MSOUNE 
NTM9( (42400 US grtL: cMS grt) 


1.1* 12 month! „____4J8 

L21 


Lara* 

pria 

BaTa 

MBb 

lew 

Ote* 

tat 

Yal 

prtrey oz. 

US Os equlv. 

Mg 

SMS 

+633 

55-25 

5430 

41095 

15,705 

335.30 


Sap 

55.40 

+135 

55.45 

5*60 

23088 

7.659 

338.65 

528.60 

Oa 

5355 

+119 

S190 

53-35 

tijBP 

2129 

34335 

535^0 

<taa 

5225 

-om 

5225 

S2Q0 

730 

1.438 

35450 

55050 

Dk 

57.15 

-116 

5725 

50J5 

4.157 

214 

S price 
389-382 
39655-388.05 
91-94 

E aqufv. 
249-252 

5M1 

JK 

Tort 

5656 




1JS3 29 
81401 27074 


GRAINS AND OIL SEEDS 

■ WHEAT use (£ per tonnei 

stf of Om 

price dang* Ntfi Lor M 

Sap 10227 -045 12225 10225 485 

hv tOOGO -0.40 103.15 1KUJQ 2428 

JK 10540 -0.40 1C5J5 10840 1.462 

HV 10075 -0<5 10720 IG845 621 

Hay 10015 -060 10225 1C225 599 

jta Horn -oa - *2s 


■ WHEAT CBT fS.QGflte/ W cara/fiOft? teahoQ 

Jd 315V +W 312V 311/4 3,150 2400 

Sap 3A38 *0/4 331/4 3ISM 103425 13.735 

Dac 333ft .Ut 334/4 332/01*8.785 15,333 

Ihr 358/4 +1.V 333,13 3374 30465 1410 

Kn 33372 - 3346 332ft 1480 345 

Jd 31W -1/0 32&V 316W 2980 165 

Tdd 390573 33470 

a MA*TF CBT (5,000 fcu nan; C6nta/58& txahel) 

Jd 2306 -1ft 239/0 235/4 30.120 7460 

Sap 22</2 -1/2 ZS/6 224/0273.^5 38470 

Om 223/2 -1/6 225/4 2234)574.675 734*5 

Hv 231ft -an 234ft 231 /B 91A9S 5.730 

Hay 23SV -ZO 2400 238ft 29,190 1J50 

Jd SWS -3ft 243ft 2*1/6 23.700 3040 

Total UBNISlklS 

■ BARLEY LCE(E per tonne) 

Sap 10X30 *030 Ifl QEO 10060 200 1 

No* 10240 *045 102.00 101.75 *87 33 

JM IQZe -*023 » 

liar 104X0 • 104.00 104.00 38 

May 10840 *045 ’ 

7(01 754 M 

H SOYABEANS GST ftOOOtu mh: cants/OPO baMA 

Jd 814ft tOfZ tlSM 61 OO 12450 6.410 

Art 611/2 *3/2 613ft 606/4131480 53495 

Sap 590ft -Oft 593'* 589/4 85455 840S 

NOV 576/6 -2ft 581/4 575/4349.725137.470 

JH 563/4 -2ft S83.V 582/4 44445 7,705 

1H 592ft -3V 596/4 592ft 17460 E6S0 

Tort 687.1 10 229^165 

■ SOYABEAN OIL CST taOXCOItg: cental 

Jd 24B5 *045 24.65 24X9 1471 730 

Art 2444 *045 2447 2U7 20,105 6.567 

Sap 2480 *633 24.61 2*45 16410 3418 

Oct 24.07 *047 2415 2345 11,374 2466 

OK 23.75 +030 2343 ZUSO 32.124 8JXS 

Jk 2340 *040 2340 23.67 3,454 370 

TOrt 83437 20088 

h soyasban meal car qoototrtMog 


SOFTS 

■ COCOA LCE g/tawrt 


sdl Day 1 * (hrt 

pita chart* Wgh lw W W 


jj 

JH 

1046 

•27 

1M0 

102* 

1.177 

32 

Art 

65 

Sag 

1066 

+41 

1073 

1028 

16.406 

2,135 

Oet 

19 

Dn 

1083 

+40 

1082 

HMD 

28314 

13® 

Dac 

10 

te 

1103 

+47 

»03 

1060 

28.664 

1,007 

M 

15 

Hot 

till 

+46 

1112 

1064 

MU 

811 

Apr 


i 

JH 

1118 

+47 

1715 

1072 

1932 

67 

Jeff 

124 

TaW 




101,89a 

$£01 

Total 


■ COOOA CSCE PQ lonnsa; Sftonnaal 


1522 

+124 

1530 

1*85 77 32 

JH 

1558 

*1)9 

>565 

1443 35L2S3 7,026 

Art 

tssa 

+88 

1558 

1480 15.431 3JI16 

Oct 

1576 

*89 

1S78 

1578 7^55 409 

DW 

1596 

*08 

1500 

1550 2451 6 

m 

1510 

*88 

- 

- 2^12 1 

Ate 




7ft«80J#4« 

Total 


Sap 1616 *88 - - Z4™ * 

Total 7ft*8p«V« 

■ COCOA PCCO) fSDP’a/tomc) 

jm 14 Pries Pie*, day 

Oasy 104081 10M4S 

10 Hot awsgs _. N/A WA 

m COffEgLCgiStortM) 

Jd 3815 *35 3790 3700 833 319 

Sap 3823 *22 3860 3720 5943 Z108 

Mm 3833 *24 3845 3725 7468 1438 

Jd, 3838 *23 3830 3738 10,142 14*5 

Mar 3825 *20 3830 3735 3412 1*1 

May 3825 *15 37S7 3757 884 5 

Tort «W7» B4» 

m coffee «g csce (37400a*: crtHfcg 

Jd 234.75 *2.00 24140 234.75 187 23 

Sap 23845 *345 245.50 23200 2*487 9,144 

Ok 2354B +9.D0 23525 23545 11,7*5 58* 

Hv 23500 *9-00 23500 23500 5.325 1.103 

rty 23540 +900 • - 1497 110 

Jd 238.40 +400 - - 315 *8 

Tort <840610477 

H COffffigCqiUScantypowxg 

jd 14 Rica Prav. day 

Canp. ffdy 20745 21648 

15 dry arenge 17142 166.15 

■ No7 PREMIUM RAW SUGAR LEE Icentaflba) 


tfiao 

-06 

1618 

>626 2382 

1.873 

Art 

- 


lau 

-12 

1802 

181 J 22601 

0684 

Oet 

31100 


1804 

-13 

1620 

1603 16333 

879 

Ow 

31000 


177.4 

-2.1 

171+ 

1773 9334 

717 

Iter 

31430 


177.1 

•21 

1703 

1706 25,192 

4382 

HOT 

31130 


7776 

■20 

7707 

1773 2612 281 

84J22 16JK5 

Art 

Total 

30050 



ToW 84.722 10425 

H POTATOES USE fE/tenna) 

Not 904 

Hv 1054 - 210.1 2141 

Apr 2093 -144 2164 20B.S 1020 114 

Hay 2250 

JOB m3 

Tart 1J020 114 

H 7*BQHT(BH=EX) LCE (SltMndax poblQ 


Jd 

uoo 

+12 

1400 

1390 

sea 

41 

Art 

1355 

+6 

1355 

1350 

765 

SO 

tap 

1372 

+7 


- 

91 

11 

oei 

1394 

+4 

- 

« 

437 

- 

Jk 

1413 

+10 


- 

255 

- 

Apr 

1430 

+S 

• 

- 

101 

• 

Tatal 

CtaK 

Pit* 



2277 

102 

BO 

M12 

1406 






Hv » 

ToM 1400 

■ WHITE SUGAR LCE (SAottod 


Dac 31540 - 31500 31440 907 

Mar 31440 - 31400 30800 X745 

Hsy 31140 - 31140 30740 362 

MB 30550 - 30560 30640 3*6 

Total 1MW . 

■ SUGAR IT CSCE Q1240CBW-. osntaftad 

Od 1245 *035 1X10 11.72 69418 8429 

Mr 1142 *047 1148 11.45 29.700 1J11 

HOT 11.62 *026 1142 U4S 5983 271 

Jd 1140 *024 1140 1149 2,485 38 

Od 11.43 *024 1140 1140 876 55 

HV I1A0 *044 83 3 

DM 10846611406 

H COTTON NYCE paOOOOjs; cenB/tos) 


Art 

8825 

-0.65 

. 

. 

5 

. 

Od 

6931 

-013 

7135 

69*5 

83*2 1337 

Ok 

6931 

■037 

71.15 

09.41 

29,766 5386 

•tar 

70.70 

-030 

724S 

7132 

7.196 

603 

■tay 

7130 

-045 

73X0 

71.90 

4336 

596 

Jd 

72.40 

-025 

73X0 

7X00 

2378 

399 

Total 





63,127 6.772 

■ ORANGE JUKE NYCE (ISjOOORm; carts/tos) 

Jd 

6830 

+2.45 

99X5 

8075 

40 

36 

Sap 

8200 

+245 

92*0 

8935 14.485 1X3* 

Nat 

95X0 

+1X5 

95X0 

9125 

1463 

192 

JK 

ra«j0 

+1.95 

9935 

9730 

4X61 

171 

Itar 

10225 

+135 

10275 

101X0 

239? 

34 

hot 

10025 

+135 

105X0 

105.00 

532 

105 

Tdd 





25,137 1377 


Spices 

Desprts the holidsy season. actMty In the pep- 
per market have bean picking i*> lately, reports 
Man Productan. White pepper prices rose con- 
siderably dutng the wreck, mainly bi Om for- 
ward posdons. because of the delayed harvest 
in I ndo n es i a and a very Ugts spot position In 
Euope and the US. The spot price went lo 
about USS3.1S0 a tome and Jdy-August ship- 
ment was ousted at S3.050 Of. The mare 
dutent postbons were somewhat discoursed. 
Black Dapper prices also daveiopad a much 
f irme r bend as soon as trash buying Interest 
appeared. A9 origins are now extremely retuo- 
tent to safl, as if the real sta Ustl cd picture has 
become a lot dearer. Spot black pepper grade 
1 was quoted at SI 400 a tonne and fair 
average quaffty at atxxif 51425. with very fttfe 
supply available in Bsope. 


VOLUME DATA 

Opan interest and Vokene data shown for 
contracts haded an COMEX. NYMEX, CBT. 
NYCE. CME. CSCE end PE Crude 01 are ono 
day In arrears. 


INDICES 

■ REUTERS Pass: 1&<8/31=100) 

Jiff 16 Jul 14 month ago year ago 
8179.0 21234 2O09A 17035 

■ CRB Ttartaa [Base; 4^56-100) 

Jul 14 Jul 13 month ago year ago 
231.73 23140 23748 214.75 


MEAT AND UVESTOCK 

■ UVE CATTLE Otf (dQJOOffrtCarrtfiba 

Salt Oaf^ (krt 

P*» ctaR Mgh lav tat w 
Art 88.775 *afi« 69400 88050 27.CS 1041s 

OH 71.775 *0075 71875 71 425 21430 47« 

Dk 71-6S0 *0450 71.700 71450 llftf r’rJ 

f*t 71.125 +0325 71400 70.600 8329 fjm 

Apr 72.025 *0150 72450 71J00 5060 274 

Jo* 68453 +0.150 68400 83825 1.T15 3 

Total 754B 164H 

■ UVE HOPS CME (40 JOCtbe; certs/toe) 

iff 4 &szT -asm 47400 44M0 1.10 

Art *4.575 H02S *5.100 44.400 10446 XSK 

Oct 41.425 -0825 41475 *1400 9408 Xin 

DM 4aSOO -41 tD 4US0 40650 4.407 UB 

fM 43376 -0075 40900 40275 1,149 IX 

Apr 38*00 -0300 40000 38400 809 u 

TOW 27499 748 

■ POWBBJUESCMeWJOOOrtCvnsftrt 

m 32400 -ijoa SLsaa suso at & 

Art 32-790 -0800 94.1B 32.700 4J70 Va 

Mb *3450 +a*» 44475 «L35D 2439 600 

HV 43.400 +0.100 44+90 43400 104 2 

Mp 44.400 -a*n 44.900 44400 40 u 

M 48.150 ... 29 | 

Tart 7401 xn 

LONDON TRADED OPTIONS 

Sbtice pries S tonne — Cals — ■ — Puta~ 


Dec Sep Dae 

W 46 7B 

76 60 91 

68 73 1Q5 

Dec Sap Dec 
138 36 87 

112 55 HO 

91 79 156 

Nov Sap Nw 



$29 

666 

301 

433 

-a-..- 

$02 

642 

324 

4S9 


477 

618 

349 

465 


Sap 

Dac 

Sap 

Dk 


84 

134 

16 

51 


52 

105 

34 

72 

■W^M 

20 

62 

61 

99 

1PE 

Aug 

Sap 

Aug 

Sap 


- 

- 

. 

25 


45 

- 

■ 

43 


3 

47 

- 

67 


m ALUMINIUM 
(99,7%) LME 

1S25 

1550 

1S75 

H COPPCH 
(Grade A} LME 

2*00 — 

2450 

2500 

■ COFFEE LCE 

3600 

3650 

3700 — — 

H COCOA LCE 

1000 — 

1050 

1100 — 

m BRENT CRUDE 

1700 

1760 

1800 


LONDON SPOT MARKETS 

■ CRUDE ML FOB (par baneVSsp) *o+- 

Outuf 91&43-6A8* -0.176 

Brant Blend (0atsd) SI 7.99-8.01 -a2S 

Brant Blond (Sap) S17.77-7.7g -a 15 

W.T.L tlpra sail S1fl.4Q-e.42 -0.175 

■ OIL PRODUCTS rftVEprorrpt deffvery OF (tang 

Prenffum GaaoBne $188-186 

Gas Off $155-164 -JJ 

Heavy Fuel Off £97-00 .1 

Naphtha S16&-171 

Jet fuel S168-170 -1 

ftMtan Arga SOTretv 

■ OTHER 

Odd (per troy ozft $38550 *2X5 

Sffver (per trey ocft 6235c *&0 

Ptatkun (per trey oz.) $41025 +2.0 

PaDadksn (per troy or-) S14&2S +035 

Coppor (US prod) 116.0c *2 

Lead (US prodj 37.75c +2.85 

Tin (KixAa U/npra) 13.74m *0.11 

Tin (New York) 263^0c *3ft 

Zinc (US Prime W.) Unq. 

CatM ftve wolgntjr 119J22P +1.90’ 

Sheep five weighgtA 9&45p -2.75* 

Pigs (Ka weWft 70.45p -5.61* 

Lon. day sugar (raw) $297 J *33 

Lon. day sugar (wto) $268.8 *3.6 

Tore & Lyie axpon C303.0 *40 

Bartsy (Eng. Mat$ ESBJOt 

Mala (US No3 YeBow) $143^ 

Wheat (US Doric North) £180.0 

Rubber (Au^¥ B5.50p +16 

Rubber (Se^f 83.50P ♦1J.-. T-"* 

Rubber KL RSS Nol Aug 320.0m +2X / t ,, ,, 

Coconut Off (Prt)S 8S85.QZ *23 ■ y: •• 

Petal 04 (Maiay.)§ SSOaOq *73 

Copra (Ptift§ $400 

Soyabcwns (US) C177.0q 

Cotton Outtook ‘A* Index 8070c *030 

Wboftops (B4s Super) 421p 

C per tonne unions (Xhorwas gtaiad. p poncoflo. c catab 
r ringaK/ln. m AMOTetan OtnWVg. t AOTMitg. q ft* * Maf 
SvwSn.f London n*ekM. § OF BoUecam. | 

Buaon manm cloee. 4 Sheep (Uve ■ eig ht priced. * 

Owige on Merc preebbnri (stow- 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONOS 




Coupon 

Bed 

Dora 

Price 

Da/a 

change 

Yield 

Austrrta 


9.000 

09/04 

97.4600 

+1X80 

938 

Belgium 


7250 

04/04 

96X000 

-0.150 

7.61 

Canada* 


6500 

06/04 

84.7600 

+0.950 

8.85 

Danmark 


7.000 

12/04 

92.4500 

+0330 

6.08 

Franca 

BTAN 

6.000 

OSffifl 

1043200 

_ 

6X0 


OAT 

5300 

04/04 

873300 

- 

736 

Germany TraiJvmd 

6.750 

05/04 

99.7500 

+0390 

6.70 

Italy 


8300 

01AM 

89.6000 

-0.080 10X1T 

Japan 

No119 

4300 

06/99 

104,8900 

- 

3.63 


No 164 

4. TOO 

12AJ3 

964600 

*0.400 

4.33 

Netherlands 


6.750 

01/04 

927600 

-0.060 

6X0 

Spain 


8.000 

05AM 

06.0000 

-0.050 

10.32 

UKGHts 


6.000 

06/99 

92-16 

-B/32 

7X3 



6.750 

11/04 

90-00 

-23/32 

aig 



9.000 

10/08 

105-19 

-35/32 

632 

US Tteasisy 

• 

7X50 

05AM 

100-04 

+9/32 

7X3 



6.250 

08/23 

64-29 

+11/32 

7.64 

ECU (French Govt) 

6X00 

04AM 

67.5700 

-0.030 

7.87 


Week Month 


London daring. Tree rots n+d-rbe YUM* Local noth 

I Qkbd Ondutos wtWtarang tax at 1ZA par curt parobla by no nt re M e i m ) 

mcaa: U5, (JK n 32nria. oflwn (n dac*ml SowearUUS 

ECONOMIC DIARY - FORWARD EVENTS 


TODAY: National savings 
results (June). 

TOMORROW: Mr Warren 
Christopher, US secretary of 
state, scheduled to depart on a 
tour of Middle East Turkish, 
Bosnian and Croatian presi- 
dents meet in Zagreb. 
MONDAY: Public sector bor- 
rowing requirement (June). 
European Union foreign minis- 
ters meeting in Brussels (until 
July 19). first day of extraordi- 
nary Diet session in Tokyo 
(until July 22). European 
Union agriculture ministers 
meet in Brussels. 

TUESDAY: CBI survey of dis- 
tributive trades (June). Finan- 
cial statistics (July). US trade 
gap (May). European parlia- 
ment in session in Strasbourg 
(until July 22 ). Bosnia’s war- 
ring factions expected to meet 
five-nation contact group on 
Bosnia to give formal response 
to latest peace map. OECD's 
annual employment outlook 
published- CAA annual report 
WEDNESDAY: Retail sales 
(June). Building societies 
monthly figures (June). Provi- 
sional estimates of M4 and 
counterparts (June). Major 
British banking groups' 


monthly statement (June). US 
housing starts (June); building 
permits (June). General Agree- 
ment on Tariffs and Trade 
holds monthly council meeting 
in Geneva. Rail strike expec- 
ted. 

THURSDAY: Engineering sales 
and orders at current and con- 
stant prices (May). Balance of 
trade with countries outside 
the European Union (June). 
Provisional figures for vehicle 
production (June). US State 
Department holds conference 
marking the soth anniversary 
of the Bretton Woods financial 
conference and the institutions 
it set up (the International 
Monetary Fund and the Inter- 
national Bank of Reconstruc- 
tion and Development). Result 
of Labour Party leadership 
contest. Bundesbank council 
meets. The Commons rises for 
summer recess. 

FRIDAY: Gross domestic prod- 
uct (second quarter - prelimi- 
nary estimate). US budget defi- 
cit (June). ASEAN (Association 
of South East Asian Nations) 
ministerial meeting in Bang- 
kok ahead of regional forum 
and post-ministerial conference 
(until July 28). 


US INTEREST RATES 

LuncMbna 

Oram*. 

Prime rata 71, Usman*. 

Brafcvkaarete Sh Thee mom 

faUndi ftreffi. 

Fglhah ri tffmraUun- - OuyeV— 


■ LONG GB.T FUTURES OPTIONS (LIFFE) £30.000 B4ths of 1 0OH 


Tressiry BHs and Bond YWds 

430 Twojeor 

437 Thrairar— ~- 

435 Rea year— 

4J1 10-year 

633 30yav 


5X6 

Price 

Sep 

Dec 

Sep 

Dec 

— 

Open 

Latest 

Change 

Mgh 

low 

Est vo L 

Open ht 

631 

#70 

103 

1-53 

2-60 

1-21 

3-16 


102-20 

103-01 

+0-11 

103-07 

102-06 

535330 

390,132 



2-32 




1D1-26 

102-08 

+012 

102-13 

101-13 

2364 

56.735 

7 JO 

Eto. voL total Cara 3838 Puta SZ37. Previous data opan tat. Cafe 66048 Putt +0857 

Mar 

100-29 

101-18 

+0-15 

101-20 

100-23 

675 

4,117 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FHBfCH BOND HJTUHBS (MATTFj Jiff 13 


Ecu 

H BCU BOND FUTURES (MATTFJ Jut 13 



Open 

Sett price 

Change 

«9h 

Low 

EsL vol 

Open tat- 


Opan 

Satt price 

Change 

High 

Low 

Est vaL 

Open Int 

Sap 

118.74 

116X8 

+0.06 

116.66 

118.12 

125X08 

127X11 

Sap 

6430 

64X4 

+0+4 

B4M0 

63X0 

1X85 

6396 

Dec 

115.96 

11548 

+OJ06 

118X0 

115.78 

506 

13X23 

Dec 

- 

83X0 

+0.44 

- 

- 

- 

- 

Mar 

115X4 

114.78 

*0-06 

115X4 

11430 

4 87 

1,747 










Japan 

H NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 

[ufq Yitero moths of ioox 

Open Ctoea Change High Law EsL vol Opvtkff. 
Sap 108.75 mas 109.70 2600 0 

Dec 106.78 100.07 1QB.7B 483 0 

* UFFE eartnera Varied cm AFT. M Open Mmat Sga. 0M tor pm riaus Hot- 


H LONG TERM HtPICH BOMP OPTIONS p*ATB=) Jul 13 
S&8« CALLS 


Price 

Art 

Sep 

Dec 

Aug 

Sep 

Dec 

114 

. 

- 

- 

027 

ass 

135 

115 

1X1 

2.46 

- 

050 

1 x 0 

2X0 

116 

- 

1X8 

- 

OBI 

1-56 

2X0 

117 

052 

1.33 

- 

1X6 

1X9 

- 

11B 

0X8 

0X2 

1X0 

- 

£44 

- 


CaC* 20.787 Pita 60302 . Mu Pa/a epw> ML Ota 944,117 PMt 3B0. 1«7. 


Germany 

m NOTIONAL QSTMAN BUND FUTUBCS (UFFEJ* QM2S0JI0Q IQOlha of 100% 

Open Sait price Cheng* High Low EsL vol Opan btt. 
Sap 94A4 S3.88 -032 94.47 93.70 166831 156724 

Dae 93.66 93.18 MX29 93.85 83.15 533 8762 


■ HUNP FUTURES OPTIONS (UFFE) DMgSQ.000 poblte of 10044 


Strtae 

Price 

Aug 

Sap 

CALLS — 

oct 

Dec 

Aug 

Sap 

PUTS 

Oct 

Dec 

9350 

0.71 

1X5 

1.18 

ixa 

035 

0.88 

130 

137 

9400 

#43 

0X7 

a 92 

1X9 

037 

1.11 

1.78 

2.13 

8490 

0X3 

0.72 

<L71 

1.07 

0X7 

136 

2X5 

241 


Em. ««L tabu. CW 1700* Putt 22701. Pravtoum dv^> opan te. Cera 278088 PuV 270868 


■ NOTIONAL N&XUM TOM GERMAN GOVT. BOND 

(BQBLjOJFFEr DM2S0JM0 IQOths cf 100% 

Opan San price Change Ugh Low 

Sap 98.86 -aOB 

Italy 

■ NOTkWAL ITALIAN GOVT. BOM) (BIT*) RJTUWE8 

tUFFE)' Ura 2COm IQOtoa ot 100% 

Opon Satt price Change High Low 

Sap 105.85 10430 -167 1Q&86 103A0 

Dec 103.00 -1.87 


EM. vol Opan Int 
0 78 


EbL vol Opan int 
S7213 81288 

0 110 


■ ITALIAN GOVT. BOND (BTT^ RlIURES OPTIONS (UFQ UnCOftn IQOtta of 1D0H 



Strike 

Price 

Sep 

CALLS 

Dac 

Sep 

PUTS ~— 
Dec 

10400 

139 

273 

1.7B 

3.75 

10460 

1.77 

234 

2.07 

4.04 

10500 

130 

234 

230 

434 


Em. «. tort. Ccfij 1810 Pia 2421 Prevtou dajn Open H. Ceffi 31080 Pira 28783 


Spain 

■ NPTTONAL SPANISH BOND FUTURES (MEFF) 
Open Sattprtcs Change Ugh 
Sep 91 A0 90,49 -063 91^0 


EsL voL Open Int 
40380 102,838 

314 


■ NOTIONAL UK QN.T FUTlffTES QFFg* £50600 32nd8 of lOQ4t 

Open S^i price Change Hgh Low EsL vol Open to. 
Sap 103-30 103-16 -0-18 104-16 103-08 63083 116173 

(tec 103-02 10932 -0-15 103-02 103-02 15 1238 


FT-ACTUAIUES FIXED INTEREST INDICES 


UK OHa Pile* iodteea 

1 Up to 6 yoara(24) 

2 5-15 yam (22 

3 Over IS yaasffl 

4 taadewriEtJlM 0 

5 M stock* (81) 


Jd 15 

Dot’s 
chreoe % 

TIW 

Jd 14 

Accrued 

Interest 

xd ad) 
yWd 

“**■* ■■tBU 

Fri 

Jut 15 

.Daft 
change M 

Thur 

Jd 14 

Accrued 

interest 

rtad 

y«fl \*rv 


12237 

+014 

12231 

132 

8X4 

8 lip 10 S yeerep) 

7 Omr5year3 (11) 

8 AH stocks (13) 

187 LB 


187X9 

137 

233 


14333 

-0-12 

14349 

246 

6.71 

17217 

-004 

172X4 

0.70 

2M :ih, 

238 J -«S 

■ • V 

18037 

-032 

16131 

243 

637 

17283 

-003 

172X9 

077 


16334 

14038 

-031 

-an 

183X0 

140X8 

1X8 

2X6 

736 

638 

9 Dab* and loans (76) 

13242 

+009 

13330 

2X1 

6X4 



— 11 Low coupon yield • 
Jul 14 Yr ego 


Up to 5 yre 3.62 
aw 5 yrs 3.88 

DabaAtoawa 

926 ! 

Average gross redw m tton 


739 8.74 &54 (21/8) 5JS7 f1971 

8.12 7.7S a.7BYl« 6JO 120/1 

8.10 7J1 6.75 (1/S 8.41 KYI 

R2D 809 388(1/8 652 (34 fl 

Inflation rete S% 

330 2.60 X84 fl/81 2.T3 «A) 

3ft5 3.45 3ftfl (2V^ 2ft8 WJH) 

- — Syarae 

930 &26 torn {21/« 7.19 (10/1) 


M. 

Jd 14 

nraaneoi 
Yr ago 

-tfr- 

Low 

Jd 16 

Jd 14 

8X9 

on 

070 tl/Q 

082 (19/1 

014 

6.16 

6X5 

7X4 

8X2 (1/ffi 

039 (20/1 

050 

8.52 

n« 

7X5 

082 (1/S 

042 (20/1 

043 

637 


InBabon rete 10 % — 

231 2 A7 1.99 206 0701 

3.66 3.66 328 3.79 Cl/6) 

— IS yaare 

9.21 922 379 9.90 (1«9 


739 ( 2 Q/I) 


7.09 381 (20/8) 

8.09 924 rVffl 
316 9.05 (1/8) 


25 years 

9.16 9.16 838 384(1/6) 


Average gross rectonpaon ytokto are shown above. Coupon Hands; Low; 0M-7\M; Medium; 8%-10\%; Hglt 11% mi over, t Flat yield, ytd Year to data. 

FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

July 16 -k*y 14 Jiffy 13 Jiffy 12 Jtffy 11 Yr ago High- Imr Jiffy M My 10 My IS My 

Govt. Sees. (UK) 9381 94.11 93.75 9342 92.68 9631 107JM 0399 G8t Edged twpataa 1032 1432 97ft 79. 

112ft9 11207 111.83 111JJ0 10366 11397 13337 10733 


Govt Sees. (UK) 9381 84.11 93.75 9342 92.88 9331 107ft4 9399 G8t Edged b ragataa 103ft 143ft 97ft 79.8 602 

Ftaedtaterrart 11339 11207 11133 1 11JJ0 10366 11397 13337 10733 5-da y average 1036 943 834 91.7 BOL 

W OOTwenre a Snnwhu «nce era raO rtw* 127A0 »n/38>. to* <8.18 (S/I/7N. FM Intorsto *nce eempa rtu n: 13867 {n/lftft . km BOSa (3/1/7E) . Bnto IOOi O o ramnwra SsewHra WW 

26 MO Run iSBNt 1928- SE Pdnkf NflcM Nbend 1074 


UK GILTS PRICES 


_»Wd_ IBM ._ 

u M fttet+nr- IS»I Urn 


~VMd~. 1994 — 

H RH Prices +or- rth toe 


_Wdfl_ —1984— 

n) a puck e +«f- W fj* 


OraV (Uhs UP to Rra Tom) 

Tiera.10oe0i.199*tt_ HUB - 100 

Ertl12lspel9B4 1140 433 1085 

■FYara9pclBBttt #39 531 IBIS 

ISpcIOOS 1160 5.111035* 

EffhSpcSas 90-85 #06 113 W, 

10>««el9E 932 5.69104^81 

Tiesi12Lpc109Stt — 11. 7B #02 1 06H 

I4peim 1233 #32llQ^al 

15Wl9Bett U33 #68 1145 

auns^ociaBCtt — 1131 #60 mu 

Coo«aOri1ttc 1906 939 #34 I06J5 

TwsCwTpciSSW. — 036 8311005* 

TiMSlH,pcl8W — 1133 7.11113Q* 

&riH0bgc1997 9.75 7ft1107ftd 

7lrtee*pcl«tt #43 7.46 1KUS 

WH5PC1W7 1738 738 121 A 

9LpeigaB 9.17 7.70106&6 

Tiex 71i pc 1886ft 734 76B 98 B 

Tieas#lo«:iaa5-86tt_ 637 777 065 

1 toe 06-1 1139 736 119B 

TwralS'mc’OBtt. 1218 7.79 177 "4 

Erti12pc1898 1047 735 11-LQ 

TnasV&c 19SSJJ 437 7ft2lfSHH 


ftaatamiOTWtos 

Bell 12Lpe 1969 1034 #05 118,1 

Trera Iflljpc 19» &5B BJN 109H 

TtWSoclOaBtt #48 737 nn* 

taWSB lOliflc 1989.. 040 415 JfflA 

TnraR5Rata-98__ - - 995 

apezoam #g& #te 

Twiapcamo vm 435 nu 

lOpeSOOT #24 449 106,1 

TpBfnj* 7.47 #18 TBB 

7geV1A 7.44 421 gsu 

ft pcZBB . 90S #44 107ji 

8W 2003tt 8.15 _ #2S 905 

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Hi 751,1 
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lift arc •98 4073) 148 3.72 1B9tt -A 203ft J ^ 

71/. ftpcBS# (135-G) IffO 342 IWH «1» 

100 2*iPe w (783) 133 177 I6JA ft ’15 ]SJ 

OSH Z 1 **' 03 FB3) 144 160 101 fl ft ; s 

1^ «^Pc’0*tt — 0356) 345 179 10ft ft JS 

fee *06 p#5) 152 176 107 tl* ~A 

gS ZijpCOO (718) Ml 184 1H& -fl *£ jS 

"2 2*rae’11 174a 186 108 10ft -fl 7ft 5JH .. 

1^ 1623 1E7 3J6l283ta -** Ijft Jg 

'If* 2*ape1B (8131 171 368 137 ft fg* SS 

zitffa^ (fan it* ioo isiv «»u 


Shocl* it <97.71 *« M/H0QW 

asSiAKSLeBjabE 

ana 0 596. ft) figures in pare**** 

tadadng 0» 6 morths prior U Ibbm) and hra 9mm iart»« . 

reftaa rsbasing of RH to IDO In J»«jsiy 1987. Conwrtj* 

1946. RPl lor Nnentoer 1983: WJ6 end tor June 19B* 


174 100 131V ~r |SV iSi 

172 M7I0W* +A «ft 'J3 


SI mfl 93 
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-4J i=« 101 * 

~S 12 ft 101 A 
ft *n 72.*. 
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ft lift 
ft 12ft 99B 
-« 1S9»Z 12ft 


Other Fixed Interest 


i repffouen. £ Audan baata. ad Es dvktand. 


- 47JJKI 

- 41% 

- SOB 

- m 

- 30ft 

- MB 

I m«n»toee are 


ft Sft 4«fl 
-d S4JJ »H 
ft 71 5ft 
— 4ft 3ft 
-A 381, aft 
ft 37S 37B 
ranwi In trank. 


4*101 Dw JJ)* 2010— 
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toranapsiracTo — 

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Ml - 102J* 

11.66 - lift 

1139 MO MSB 
1036 - 1?) 

#27 - 37ft 

#96 - 3ft 

W 1 » 1 «S 

U2 761 ft 

- 462 13ft 

- 460 12ft 

1167 - 139 


-1994 — 

►a- m Jg 
ft 

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ft lift loft 

ft i«« js 

ft '4ft < 2 ? 

as s 
5^ A 

3 m “gv 

ft lift ia« i , 
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FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


13 


CURRENCIES AND MONEY 


MONEY MARKET FUNDS 


MARKETS REPORT 

Dollar firm 


The dollar maintained its 
firmer tone of recent days, 
helped by economic data which 
propped up the DS bond mar- 
ket. writes Philip Gawith, 

The market interpreted the 
data as showing that the US 
economy was slowing, with lit- 
tle inflationary pressures. 

The US currency finished 
one pfennig firmer in London 
at DM1.5558 from DMi.5457 
and at Y975050 from Y9828. 

Hie firmer dollar helped ster- 
ling to hold onto recent gain? 
The pound finished slightly 
lower against the firmer dollar, 
at $1.5586 from $1,566, but was 
IV* pfennigs up against the 
D-Mark at DM2.4246 from 
DM2.4069. 

The currency was buoyed up 
by foreign investors appearing 
to take a better view of UK 
assets, following the release of 
encouraging labour costs and 
average earnings figures ear- 
lier this week. 

■ Although some of yester- 


day's US data appeared to 
show signs of an economy run- 
ning up against capacity con- 
straints. analysts said most of 
the higher numbers were 
weather related. 

Mr Avinash Persaud. head of 
currency strategy at JP Mor- 
gan In Europe, said they all 
"added to the current view of 
slower growth and lower infla- 
tionary pressures." 

The market focused on the 
University of Michigan con- 
+ 

■ P a id hi Wore Vprtl 

M 15 — Lraest— - — Rev, dsn - 

1.5565 155M 

1 mm 1.5579 1.5592 

30*1 1-5572 1.3588 

1 V 1.5535 15565 

sumer sentiment indov which 
dropped to 88.9 in the prelimi- 
nary July index from 9L2 in 
the final June Inrfar 
Mr Persaud said he was 
doubtful whether the dollar 
would continue its rally, strum 
the rally in the band market 
was likely to prove shortlived. 


Doftar 


Staling 


French franc 


Of*fter$ YanperS . ■ $pwE DM per E FFrper DM 



Jun ISM Jt* ‘ " ’ Jan 1004 JO 1 ! . Jan 1894 Jul Jun 1894 M Jan 1884 Jui 

S«r» FT Graphite 


Hb said the the sharp fall in 
yields - the yield on the ten 
year US treasury note fell to 
below 7.20 yesterday from 7.47 
at the start of the week - was 
not sustainable. 

The improved interest rate 
sentiment has been reflected in 
the futures market. The 
December eurodollar contract 
settled yesterday at 94.25, 
thirty five basis points firmer 
than the 93.90 close on Monday 
ahead of producer and con- 
sumer Inflation data releases. 

Some traders are expecting a 
rate rise ahead of the Hum- 


phrey Hawkins testimony next 
week of Mr Alan Greenspan, 
chairman of the Federal 
Reserve. With inflation appar- 
ently under control, however, 
most observers believe the Fed 
will wait until its next policy 
meeting on August 16. 

■ In Europe the r p*»n excite- 
ment was provided by the lira 
which slipped to an early low 
Of L899.25 againgf the D-Mark 
before recovering to dose at 
L993.8. The market was con- 
cerned about a political row 
surrounding the anti -corrup- 


tion probe by magistrates. 

Mr Silvio Berlusconi, the 
prime minister, triggered a 
revolt by magistrates when his 
government approved a law 
curtailing their right to order 
the arrest of corruption sus- 
pects. 

■ The Bank of England pro- 
vided UK money markets with 
£30m late assistance. Earlier 
the Bank had provided 
£l.549bn after forecasting a 
shortage of £1.65bn. the largest 
for some time. Overnight 
money traded between 4 and 


6% per cent. 

In the futures market mean- 
while, the eurosterling con- 
tracts retraced some of their 
recent gains. The December 
contract traded 27,000 lots to 
finish at 93.98 from 94.00. The 
December euromark contract 
finished at 95.10 from 95.12. 

■ OTHER eW B W CM 

Xt IS C 5 

tagm 156.458 - 15661? 10O410 - 100460 
tea 274X00 - 274300 174000 - 175000 
Kuwait 04604 - 04818 02955 - 02983 

POM 347323 - 947000 222800 - Z TPOO 
ffetta 313000 - 3154J0 201460-202100 
UAL. 57226 - 5.T341 1B715 - 16736 


POUND SPOT =0 


Jui 13 


Closing Change 
mfcJ-pofeii on day 


BkUoffier 


Day's MM 
teflh km 


Ora month Three months Ora yam Bank of 
Bate HPft Bate %PA Ram 3bPA Eng. Index 


Europe 


Austria 

«Sch) 

17.0589 

+0.1174 

514 - 684 

178645 168828 

17^1551 

05 

17.0496 

02 



1150 

Belgium 

(BPt) 

50.(7155 

+08427 

716 - 695 

508620 498470 

60.0355 

-as 

600855 

-0.6 

501155 

-02 

1103 


(DKiJ 

9.5307 

+08345 

251 - 362 

98390 

0.5096 

9£ST7 

-as 

25520 

-09 

90978 

-07 

1160 

rrw»id 

(FM1 

8.0384 

+08216 

286 - 482 

00540 

847180 








Prance 

tFFri 

8l3218 

+0.0364 

IBS -266 

88268 

82917 

83261 

-OB 

03336 

-08 

8.3196 

00 

109.7 

Germany 

(DM) 

Z424B 

+0.0074 

238 - 258 

2-AZ77 

24181 

24249 

-ai 

24238 

02 

24037 

OS 

1280 

Greece 

Pri 

386.896 

+1.899 

645 - 146 

307.308 385.194 








Irelend 

TO 

ims* 

+0.0007 

124 - 144 

1.0164 

147110 

14)137 

-04 

1JM47 

-OS 

1.01 78 

-04 

104.7 

Haty 

W 

240669 

+15.77 

898 - 099 

241839 240121 

2418^49 

-22 

2429.14 

-3L2 

248054 

-29 

78.7 

Luxemboug 

(LR) 

50.0155 

+08427 

715 - 596 

50.0820 494470 

6a 0366 

-Ob 

500855 

-06 

409665 

0.1 

1180 

Netherlands 

(P) 

2.7196 

+0809 

183 - 209 

2.7214 

2-7128 

27107 

-0.1 

27185 

02 

26993 

0.7 

1208 

Norway 

(NKr) 

106068 

+08274 

025 - 110 

1041289 105597 

104038 

04 

106143 

-03 

108003 

Ol 

805 

Ftertugal 

(Es) 

248^88 

+1.178 

463 - 90S 

249.931 248.132 

260.683 

-4.7 

2S2608 

-4.7 

. 



Spain 

(Pta) 

200.358 

+0.985 

229 • 487 

200482 199.824 

200*33 

-28 

201.740 

-20 

205.033 

-23 

880 

Sweden 

PM 

12.0334 

+08363 

245 - 423 

12.1690 12.0243 

120569 

-23 

121114 

-20 

123369 

-26 

730 

Swttzeriand 

(SFri 

2.0449 

+0.0056 

438 - 462 

2J346S 

2038S 

2.0434 

OA 

20406 

00 

2017 

1.4 

1207 

UK 

® 

• 

- 

• 

- 

. 

- 

. 

- 

re 



790 

Ecu 

ta 

1^686 

+0.0048 

679 - 693 

1.2680 

1.2844 

12M2 

-08 

1-2606 

-03 

1.2722 

-03 


SORT 

— 

nffwrvu 












Americas 














Argentina 

(Peso) 

1,5567 

-00062 

552 - 562 

1.5587 

1^634 








Brari 

(W) 

1.4526 

+0.0044 

507 - 545 

1.4520 

1.4456 

. 

. 

- 

. 

_ 

_ 


Canada 

(CS) 

2.1469 

-0.0169 

449 - 469 

2.1578 

21444 

21474 

-as 

2151 

-1.0 

21747 

-1.3 

850 

Mexico (New Peso) 

5.3001 

-08182 

948 - 053 

5.3067 

5-2947 

. 

. 

- 

. 

_ 



USA 

n 

1^586 

-a 0054 

582- 590 

1.5617 

1.6682 

1.550 

0.5 

1.5676 

0.3 

1.555 

02 

R9R 

PBcttc/Mddle East/ Africa 



• 









Australia 

{A*J 

2.1218 

-08084 

203 - 228 

2.1265 

21112 

21216 

ao 

21228 

-02 

21411 

-09 


Hong Kong 

(HK$) 

12.0397 

-0.0442 

358-438 

120841 

120229 

120350 

0.4 

120347 

02 

120417 

OO 


India 

Pa) 

48.8874 

-0.1718 

690 - 058 

409830 40.8180 

- 

ra 

- 

_ 

. 

- 


Japan 

(V) 

15ZS95 

-1.111 

617-873 

153.770 152510 

152215 

33 

151.45 

30 

147015 

25 

1920 

Mahyft 

(MS) 

4.0438 

-08081 

420 - 456 

4.0510 

4.0391 

_ 

_ 

. 


. 

ta 


New Zealand 

<NZH 

2.6Q2S 

-08136 

906 - 053 

20057 

25880 

26088 

-20 

28154 

-20 

26378 

-14 


Pri»S43lna6 

(Peso) 

41.2251 

+08149 

248 - 253 

41.0259 408048 

_ 

_ 

_ 


_ 

ta 


Saudi Arabia 

(Sfi) 

68455 

-082 

437 - 472 

5JS568 

50387 

. 

. 

- 

- 

. 

* 


Singapore 

(SS) 

28574 

-0.0094 

660 - 588 

23631 

23544 

_ 

_ 

. 


- 

ta 


S Africa. (Com.) 

! W 

5.7143 

-08023 

116 - IBB 

5.7276 

6.8972 

. 

- 

. 

- 

. 

. 

ta 

S Africa (HnJ 

IP) 

68553 

-0 . 106 

340 - 785 

7.0323 

AflSM 

. 

. 



. 

ta 


South Korea 

{'Atop) 

125886 

-3.69 

778 - 874 

1260.60 1256.48 

. 

. 

. 

re 

- 



Taiwan 

(ta 

414245 

-05196 

107 - 382 

415816 41^638 

- 

_ 

- 

- 

. 

_ 


Thailand 

m 

388871 

-0.1335 

615 - 126 

39^830 328580 

• 

■ 

- 

. 

- 

- 

- 


tSOH rats tor M 14. BUMtar apneas in 0<s Pond Spot Mite *am tea to im dackml pfooae. Forward <ara are rat i&acey ranted to to oretet 
bte ora kneted by cunorf kraast item. Storing Into o*MW by tea Bmkaf Bn amnga 1085 » tdOBU. Oto and MMm ta bate to nd 

ills Doter Spot ttetes darned Irani THE WNmjlBS CLO8M0 SPOT HATES Sans tarn sra reuslad fay tee F.T. 


DOLLAR SPOT FORWARD AGAINST THc DOLLAR 


Jri 18 

Ctaateg 

mtd-pater 

Change 
on day 

Bkttaffer 

spread 

Day’s mid 
righ low 

One month 
Rata %PA 

Three months 
Rote %PA 

One yaar J.P Morgan 
Rate %PA index 

Europe 

Austria 

(Scbl 

109450 

+01126 

430 - 470 

109835 108770 

103495 

-05 

109575 

-05 

10895 

05 

1043 

Belgfurn 

(BFfJ 

32.0900 

+0266 

700 - 100 

32.1100 313400 

32.1175 

-13 

32.155 

-08 

3233 

-04 

1053 

Denmark 

(□Krt 

6.1149 

+0043 

129 - 169 

6.1237 0.0920 

0.1209 

-15 

01319 

-1.1 

0.1008 

-09 

105.6 

Finland 

(FUfl 

5.1674 

+00314 

524 - 624 

5.1727 6.1374 

5.1 504 

-07 

5.1829 

-04 

53019 

-0.9 

77.1 

France 

(FF(1 

53383 

+00416 

375 • 410 

53456 53195 

53441 

-1.1 

53505 

-03 

5-3255 

03 

106.1 

Genrtaiy 

(D3 

1^558 

+0.0101 

555 - 560 

1.5580 13345 

15563 

-0.4 

1.6555 

0.1 

1.5458 

06 

106.B 

Greece 

(DO 

235400 

+1.7 

300 - 500 

MUM M4 M/I 

236.76 

-03 

237.0 

-3.7 

239.9 

-13 

602 

Ireland 

OO 

13300 

-00063 

368 • 391 

1.5437 15345 

15S7 

07 

1535 

OB 

15281 

08 

- 

Italy 

(U 

154825 

+1637 

000 - 650 

155036 154133 

1551 

-3.7 

1659.6 

-3.5 

159535 

-33 

77.4 

Luxembourg 

(LFO 

320900 

+0265 

700 - 100 

32.1100 31.9400 

32.1176 

-1.0 

32.156 

-03 

a? aa 

-04 

1053 

Neshertantte 

(P6 

1.7448 

+00117 

445 - 463 

1.7476 1.7380 

1.7484 

-OA 

1.744S 

Ol 

1.7358 

05 

106.T 

Norway 

(NKr) 

80053 

+0.0407 

043 - 083 

03230 07647 

63080 

-03 

63133 

-05 

6.7808 

02 

963 

Portugal 

W 

100200 

+13 

100 - 300 

160300 159-620 

1613 

-9.0 

18357 

-8.4 

170 

-6.1 

943 

Spate 

(PtiO 

128550 

+137 

600 - 600 

128-640 128.150 

120.905 

-33 

12953 

-33 

13138 

-23 

813 

Sweden 

(SKr) 

7.7207 

+00487 

169 - 244 

73000 7.7050 

7.7377 

-23 

7.7742 

-23 

73287 

-2.7 

785 

Switzerland 

(SFri 

13120 

+0008 

115 - 126 

13132 13070 

13110 

04 

13101 

03 

13971 

1.1 

1065 

UK 

O 

13688 

-00054 

562 - 590 

13617 13502 

1560 

05 

15576 

03 

1555 

02 

875 

Ecu 


12288 

-0.009 

282 - 290 

13328 13274 

13272 

14 

13240 

13 

13363 

-03 

- 

SORT 

ta 

1.46604 

- 

- 

- 

. 

. 

- 

. 

. 

ta 

a. 

AirarteM 

Argentina 

(Praol 

09982 

+0.0001 

981 -962 

03982 00881 








Brazfi 

m 

03320 

+0.006 

310 - 330 

03330 03270 

- 

. 

. 

. 

- 

- 

- 

Canada 

(PS) 

13760 

-00055 

785 - 771 

1.3828 1.3766 

13703 

-13 

1381 

-13 

13885 

-1.6 

623 

Mexico (New Peso) 

34005 

- 

860 - 030 

3.4030 33980 

34015 

-04 

34033 

-03 

3.4107 

-03 

- 

USA 


- 

- 

- 

- 

. 

- 

- 

- 

- 

. 

963 

Pactflc/MMcfla Eaat/AMra 
AuahaAa (AS 1J612 

-0.0008 

607 - 617 

13628 13548 

13814 

-02 

13821 

-03 

13885 

-03 

883 

Hong Kong 

(HXS) 

7.7247 

-00018 

242 - 262 

7.7277 7.7242 

7.7245 

OO 

7.7252 

OO 

7.7402 

-02 

- 

Inda 

(RS) 

313803 

-00025 

626 - 700 

313700 313625 

31.4513 

-33 

315963 

-23 

. 

. 

_ 

Japan 

M 

97.9060 

-0375 

800 - 300 

985700 97.8800 

97.7 

25 

9734 

Z7 

94.735 

33 

1508 

Malaysia 

(MS) 

25045 

+0005 

940 - 960 

25050 25000 

25863 

43 

2574 

33 

23475 

-2.0 


New Zeeland 

(NZS) 

1.6697 

-0003 

883 - 711 

13711 1,0666 

13700 

-07 

1.6725 

-0.7 

1.0778 

-05 


« 

(Peso) 

284500 

+oi 

000 - 000 

26.7000 28.1000 

. 

- 

. 

- 

. 

. 

- 

Baud Arabia 

(Sfl) 

3.7605 

- 

503 - 600 

3.7506 3.7503 

3.7518 

-04 

3.7559 

-05 

3.7745 

-03 

ta 

Singapore 

PS) 

13125 

-00008 

120 - 130 

15140 1.6120 

15112 

1.1 

15093 

09 

15026 

07 

- 

S Ateea (Coro.1 

(FD 

26883 

+0.011 

856 -070 

3.0706 35540 

3.0818 

-5.1 

3.7101 

-43 

3.7088 

-33 

_ 

S Africa (Fte.) 

(n> 

44625 

-00525 

500 - 760 

4.4950 4-4500 

4-4882 

-Ol 

4555 

-03 

re 

. 

- 

South Korea 

(Wan) 

007300 

■ +04 

200 • 400 

807500 806300 

8103 

-45 

8135 

-33 

KD-1 

-ai 

- 

Taiwan 

TO 

263780 

-00495 

760 - BOO 

205780 

285S8 

-03 

26.633 

-09 

- 

. 

- 

Thrihnd 

(Bt) 

243500 

- 

400 • 600 

24.9000 243300 

26.0225 

-35 

25.15 

-33 

MM 

-2.7 

- 


19DH mb for Jto 14. BUfoffor epraedt In M Dotar Soot MM Him only tea km One atonal pteaas. Forward mm n not dkeciiy quoad to to n*W 
la* an Ifopled by asms Manat mae. UK. Mend & BCU an quoted In U8 okirancy. J.P. Margm ranM Mtoaa ml 14. Bam Manga 1WD.1QQ 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES ERRS EUROPEAN CURRENCY UNIT RATES 


Jut IS 

BR 

DKr 

FFV 

DM 

BS 

L 

H 

NKr 

Ea 

Pta 

SKr 

SR 

£ 

CS 

S 

Y 

Ecu 

Belgium 

(BFt) 

100 

19.08 

1034 

4347 

2328 

4817 

5.437 

2120 

499.1 

4005 

2438 

4.007 

2300 

4589 

3.115 

304.9 

2536 

Denmark 

IDKr) 

52.48 

10 

8.731 

2544 

1.083 

2528 

2853 

11.12 

2613 

2102 

1232 

2.145 

1349 

2361 

1335 

1000 

1531 

Franoe 

(FFt} 

6010 

11.45 

10 

2.913 

1317 

2895 

3368 

1274 

3003 

240.7 

14.48 

2.456 

1202 

2.578 

1.072 

1035 

1524 

Germany 

(DM) 

2063 

3332 

3.433 

1 

0418 

9833 

1.122 

4373 

1033 

6233 

4363 

0343 

0413 

0385 

0643 

8231 

0523 

Ireland 

TO 

4837 

9.408 

0214 

2393 

1 

2378 

2884 

1048 

248.4 

197.7 

1138 

2.018 

0387 

2.117 

1538 

1505 

13S2 

Ha* _ 

(U 

2376 

0398 

0345 

0101 

0042 

100 

0113 

0440 

1038 

8515 

0496 

0385 

0042 

0089 

0065 

6530 

0053 

Nall iui Innria 

(R) 

1838 

3505 

3.060 

03B2 

0373 

886.0 

1 

3398 

91.60 

7337 

4.424 

0752 

0368 

0789 

0573 

56.09 

0486 

Norway 

(NKr) 

47.18 

8.981 

7360 

2267 

0956 

2273 

2566 

10 

2355 

1893 

1155 

1328 

0343 

2324 

1.470 

1435 

1.198 

Portugal 

(Ea) 

2004 

3318 

3334 

0.971 

0406 

966.1 

1.099 

4247 

100 

8025 

4320 

0319 

0401 

0359 

0824 

81.10 

Q5QH 

Spate 

(Pta) 

24.97 

4.758 

4.154 

1310 

0506 

1203 

1357 

5292 

1243 

100. 

6308 

1.020 

0499 

1371 

0778 

78.14 

0333 

Sweden 

(SKi) 

4157 

7922 

0917 

2015 

0842 

2002 

2260 

8.811 

2075 

1665 

10 

1.600 

0331 

1.783 

1396 

1283 

1354 

Switzerland 

PR) 

24.47 

4382 

4.071 

1.188 

0486 

1179 

1330 

5.168 

1221 

9739 

5.888 

1 

0409 

1349 

0782 

74.81 

0820 

UK 

® 

50.01 

9.530 

0321 

2424 

1.013 

2409 

2719 

1060 

249.0 

2003 

1233 

2.044 

1 

2-145 

1558 

1525 

1388 

Canada 

(CS) 

2331 

4.443 

3379 

1.130 

0472 

1123 

1266 

4342 

1104 

9358 

5.606 

0353 

0488 

1 

0726 

71.10 

0591 

US 

(S) 

32.10 

0117 

5341 

1558 

0350 

1546 

1.745 

6304 

1002 

128.8 

7.721 

1512 

0642 

1577 

1 

97.88 

0814 

Japan 

(V) 

327.9 

82.49 

54.58 

1530 

6.643 

15797 

1733 

6951 

1837 

1313 

7839 

1040 

8.557 

1437 

1022 

1000 

8515 

Ecu 


38.44 

7516 

6562 

1312 

0799 

1900 

2144 

8360 

1983 

1583 

9.487 

1312 

0789 

1.882 

1329 

1205 

1 

Van par 1.000; DonM Know, f+ora* Franc. Nonreomi Krrmw. and 9marMi Kronor par 10t Bdjan 

Ran. Fan tea. Lkaaid Root 

B par 100. 







■ D-MARK FUTURES QMM) DM 125.0QQ per DM 





■ itAMNBSE YEN RfTtmB Yen 125 par Yen 100 





Open 

Latest 

Change 

Hgh 

Low ESL vol 

Open ML 



Opan 

Lataat 

Change 


Low Est- vet 

Open teL 

Sep 

08433 

08425 

-0.0006 

03453 03416 81.279 

99385 

Sop- 


13199 

1.0243 

+00041 

13267 13192 24548 

69405 

Dec 

08443 

0.6431 

+00006 

03455 06431 

306 

3.025 

Dec 


1.0305 

1.0317 

+00041 

13340 13305 

384 

4,741 

Mar 


06453 

- 

• 


- 

7 

889 

Mar 


13410 

13410 

+00049 

13420 1.0410 

1 

700 

■ SWISS FRANC FUTURES (1 MM) Sft 125300 per SFr 




■ SmUH FVTU1WS (I MM) 682500 par £ 





Sop 

0.7835 

07830 

-00006 

0.7656 07820 24.711 

47303 

Sep 


1.5600 

15578 

-03008 

15608 15560 12.779 

40353 

Dec 

0.7689 

07640 

-0.0004 

07872 07842 

74 

1380 

Dec 


- 

1.5660 

- 

15800 15570 

384 

637 

Mar 


0.7082 

• 

- 


- 

9 

B 

Mar 


- 

15570 

- 

15600 15570 

6 

151 


JUI 18 

Ecu cmL 
rates 

Rote 

agates Ear 

Change 
an day 

% +A from 
cea rata 

« spread 
v weakest 

Or. 

ted. 

Nettwatanda 

2.19872 

2.15007 

+000011 

-2.12 

439 

_ 

neigh— 

402123 

395195 

-00027 

-1.72 

4.48 

13 

On many 

154984 

1.91757 

-000059 

-134 

458 

. 

Ireland 

0308628 

0801384 

-0.001258 

-050 


8 

France 

053883 

657960 

+000506 

063 

232 

-5 

Denmark 

743879 

753778 

+000*96 

156 

139 

-8 

Portugal 

192364 

197.418 

+0302 

257 

039 

-18 

Spate 

154350 

150581 

+0123 

237 

OOO 

-19 

NON ERM MEMBERS 






{fresco 

264513 

290033 

-0.088 

835 

-657 

- 

Italy 

1793.19 

1907.78 

+632 

B39 

-350 

- 

UK 

0780749 

0790997 

-0302682 

054 

2.11 

- 


Bor cento rata eat by to Baapem Co n n to on. Cmsnctea tee todaacantag itotaaoengm. 
Pa ra as au s ctwngaa — tat Ecu; a poakHre cMnpa darota a water a mono/. Obreg mcs whom tha 
Ha Mi an mo apraads: tea pa m an Mo dtitonoe betwee n rat aoru* raMMand Ecu can— raiaa 
for a oviency, and tea msornan patmtead percaraape dre hnu i o I tea axrmcy'g mart* rate tean Ha 
Ecu caM rate. 

(17/W9S) Staling md Item Lira auepanded bom EfteL At^aamart ntectetad by ere Rnandal Tknaa. 


■ PHLAPMJNUaEI7» OPTIONS 01.250 {ante per pound) 


Strike 

Price 

Jui 

- CALLS - 
Ai* 

Sep 

JU 

— PUTS — 
Aug 

Sop 

1-475 

039 

034 

854 

- 

- 

018 

1500 

534 

551 

631 

- 

009 

049 

1525 

354 

3.74 

452 

- 

041 

1.01 

1550 

093 

2.03 

2.74 

- 

1.14 

151 

1578 

- 

039 

1.61 

151 

250 

332 

1300 

- 

031 

055 

355 

456 

454 

Preaous day's vsL. Cate 4S39S Pun 10719 . Prav. dkyte opra kc. Cta «aeee Pus see^BO 


WORLD INTEREST RATES 


UK INTEREST RATES 


MONEY RATES 


Jriy 15 

Over 

One 

Three 

Six 

One 

Lomtx 

DW. 

Repo 


right 

marth 

irtha 

rctths 

year 

knar. 

rata 

rate 

Belgium 

5 

54 

SH 

8 

64 

7.40 

430 

- 

week ago 

5 

5* 

044 

6* 

6* 

7.40 

430 

- 

Ranca 

$* 

5* 

SB 

58 


5.10 

- 

8.75 

week ago 

5* 

5% 

5* 

56 

84 

5.10 

- 

8.73 

Germany 

4.82 

435 

4.05 

4.80 

5.00 

0.00 

430 

451 

week ago 

4.88 

4.85 

430 

455 

5.10 

6.00 

430 

453 

tretond 

6 

54 

544 

64 

6H 

- 

- 

838 

weak 800 

54 

54 

SB 

04 

64 

- 

- 

635 

Holy 

Bib 

8V» 

84 

8*4 

914 

- 

7.00 

850 

week ago 

Sib 

814 

BH 

en, 

94 

- 

7.00 

8.00 

Nothertanda 

4.85 

436 

4.68 

530 

5.19 

- 

535 

— 

wedt ago 

4.97 

458 

458 

555 

53A 

— 

835 

- 

Switzerland 

4 

44 

414 

4*4 

44 

0.625 

330 

- 

week ago 

4 

44 

44 

44 

444 

8325 

330 

- 

US 

44 

4VS 

4N 

54 

SB 

- 

330 

- 

week ago 

44 

414 

4« 

54 

SB 

- 

330 

- 

Japan 

2 

2 

2H 

2* 

24 

— 

1.75 

- 

weak ago 

2 

2 

2Vb 

214 

24 

- 

1.75 

“ 

m SUBOR FT London 








Interbank Ffadng 

- 

44 

48 

SM 

» 

- 

” 

“ 

week ago 

- 

44 


51k 

5* 

” 

“ 



4.40 

4.40 

3 Hi 
3Jb 


4.63 

45a 

34 

34 


4JJ2 

452 

316 

3* 


S48 

551 

4 

4 


let-CDe 
i age 
Inked Da 

todDi raid rataa: i mov 3 rate* a : B mtfm 6 j; « yarat Bj.S ^J******9 
, ottered mm tat Sinn, girnm m tee ^ <*2^^ ** woh * v 

, talks w Barton Tnrat Ban^Tc^ NattoM 
a ran dawn for tea domraac Monty Hates. US S COa and SI» Linked Depeten 


> CURRENCY INTEREST RATES 

Short 7 days One Three Sfat On» 

t«m notice month momta months year 


™e 5 - ■»* ft -5 

rane 5% - 5‘s 5 V ■ 5*2 

4}J - 4}2 *b - A 

Met 4 “b - A ‘ 

mne Sh-Sh 5 - - 5^ 

» Be. Kh> • IT'S - J* 

■Wa 7lj • 7h ”ia - '»• 
5*a -5 - J i» 

me - 3* 4i, - si 

at 5ji - 5,-i s^i - s : 

1 4*4 - 4>i -ih - 4 4 

a 9 - |I» S>4 - 8*3 

2,1 - 3k ‘ S {* 

3 7, . 34, 37, - 3* 


mm ora at loi me US Daw and 







ft -Pe 
611 - 6 A 

5-4* 

S'* -5k 
6A-5H 
12*. * 12*8 
eia - BA 
6A-5S 

7\ - 7k 
Sk-Sh 
ft-9 
2jl-2li 
53 -6» 


two day»' maim. 





Open 

Sea price 

Change 

High 

Sep 

9+37 

WX- 

.0.05 

9430 

Doc 

84.15 

94.11 

+0.M 

gj i7 

Mar 

8398 

9363 

-0.05 

03.98 

An 

9178 

93“4 

+0.05 

9179 

■ torsi month eurodollar (uffet 

51m pot 


Open 

SoUpnco 

avinge 

High 

S«p 

8492 

94 89 

.0 13 

94.92 

Dec 

94.14 

9435 

.018 

9436 

Mar 

03.85 

93.08 

+0.19 

93.86 



93 B7 

cO 16 



Lew 

9A21 

94.07 

53.92 

93.71 


EsL vol 
14.744 

ii.nr 

6.116 

2.331 


jtdia 
open w. 

56.897 

34.653 

32.016 

24,72* 


LOW 

&L vri 

Oprii lot 

9490 

130 

2538 

04.14 

9385 

250 

42 

0 

2044 

1243 

298 


■ THHBB MOMTH BUWOmUBK WJTW* (LlFFg* OJIm polnte of 1009* 


Open Sort price Change High Low Est voi Open int 

Sep 9530 95.18 -052 9531 95.17 13402 172144 

Dae 85.13 85.10 -052 95.14 9559 15540 100207 

Mar 9494 9453 ■ 84.98 9450 23821 153960 

Jun 84.68 94.68 - 94.73 9456 8451 92858 

■ THRES MONTH BUROURA MTTJIATB PUTWISS (LKTg Li 000m prirtia ol 10094 


Open 

SeM price 

Change 

High 

Low 

Est vo 1 

Open Int 

8ep 

9150 

91.48 

-0.16 

9150 

91-40 

7026 

30021 

Dec 

9131 

91.17 

-0.13 

9138 

91.10 

.1483 

44303 

Mar 

90.75 

90.79 

-059 

9087 

9070 

513 

12372 

Jun 

B032 

9051 

-0.10 

9040 

0032 

327 

9912 

■ TMSB 


SUMO SWISS KtANC njTURSS (UFFQ 6Fr1m points of 100% 


Open 

Sett price 

Chonge 

High 

Lew 

ESL vol 

Open toil 

Sep 

96.77 

9677 

- 

06.77 

8673 

890 

34588 

Dec 

8557 

9659 

+052 

95-61 

9654 

884 

8983 

Mar 

9652 

9B55 

+054 

8555 

9629 

185 

8486 

Jim 

8550 

9601 

+059 

9650 

9457 

24 

1698 

N TKRBt 

MOMrm BCU FUTURNS (L5TQ Eculm poteta ol 100K 



Open 

Srtt price 

Change 

High 

Low 

Era. vol 

Open Int 

Sep 

8358 

8359 

- 

94.02 

8354 

332 

10588 

Dec 

93.74 

82.78 

- 

8250 

93.74 

205 

8914 

Mar 

9357 

33-59 

- 

3351 

8357 

155 

4131 

Jun 8338 8350 

■UTtnaretetelteWT 

+0.04 

8350 

9335 

57 

976 


■ THREE MONTH EURODOLLAR (te+M) Site potets OT 100% 


Open 

Latest 

Change 

Hgh 

Law 

EsL vet 

Open irt. 

Sap 

8455 

9458 

+056 

9454 

84.78 

180567 

4S352B 

Dec 

94.17 

9434 

+ao7 

9459 

94.10 

313558 

448539 

Mar 

9350 


+007 

9452 

8352 

144.678 

323.108 

■ US THBAMJRYBBJL FUTURES (IMMJSIm per 100% 



Sep 

9631 

9633 

+003 

9638 

9625 

3509 

21562 

Dec 

94.72 

9453 

4010 

84.87 

94.70 

402 

9, ISO 

Mar 

84A4 

8468 

- 

8456 

94.43 

216 

1,745 


LONDON MONEY RATES 


Jut 15 

Over- 

night 

7 days 
notice 

One 

month 

TTW 

months 

Sbc 

months 

One 

yate 

bOtetark Storing 

612-4 

5-4* 

5-4% 

Sh - 5A 

512-6% 

ft * 6 

Storing CDs 

- 


4JI-4JJ 

ft-6V 

ft-5A 

5jl-5% 

Treasury BSSa 

- 

- 

« « 


- 

- 

Bark Bfc 

- 

- 

4D-4JJ 

5-4S 

S&-5& 

- 

Locri arthortty daps. 

4H-4M 

4H-4S 

4JJ'4« 

Sx't - 4H 

6A-5A 

5S-«i 

Oocouni Merisi dope 

4V4V 

4% -48 

' 

- 

■ 

- 

UK charing bonk ban iendtog rate ft par cent tram Februay 6 1994 

Up »1 1-3 28 841 

month month months months 

9-12 

months 

Certs of Tan dep. (£100500) 

1»2 

4 

ft 

3% 

ft 


C«t> of Tat dap. under 9100000 to i hvc. D tpoate m da kewn tar esah Vpc. 

Am*, tandar rate ol dbcauH 4^378pc. ECGD Quad mb 8te>. Btport Rnanca. teaba up June 30 
1BP4, Apaad rate tat partod Jui 28. 1BB4 to Aup 23, 1894, Sebemes > A 18 044pc. Ratannca rate tor 
pariod Jui 1, IBM 1C Juw 30 IBM. Sdetnaa IV * V aiffTDpc. Ffaan I tori Baaa HMasigpo kora 
JJy 1. IBM 

■ ti— mouth nmJWQ rmw» mwa esooaoo pqw» m ioow 



Open 

Sett price 

Chonge 

Hgh 

Lew 

EsL voi 

Open irn. 

Sep 

8450 

9455 

•052 

8459 

9452 

12001 

108201 

Dec 

9452 

83.90 

-0.02 

9452 

9354 

26890 

140*70 

MW 

90.44 

8648 

-052 

93.50 

33.41 

BBJ5 

881*7 

Jun 

8251 

8254 

-0.02 

9250 

9250 

4314 

51460 


Tradad on APT. A R Open ksareat flpa. are tar pm4oua any. 


■ WORT gntmjMO OPTKMta {L1FFQ ESOOJKX) pce-43 Of tO(W6 


Strike 

Prim 

Sep 

- CALLS - 
Dee 

Mar 

Sep 

— PUTS - 
Dec 

Mte 

9460 

0.15 

aoe 

059 

610 

051 

1.13 

9478 

aos 

0.04 

056 

P?H 

051 

154 

9600 

0 

051 

a03 

0A5 

153 

157 


Est aoL tad, Cafe 4173 Puts 8907. Pmtate Cef-i opan M. Ctes 224080 Puts 21 1718 


Al Opan htanH flip, are tar prataua day 


■ BBWMHK OPTKWg (LffB DMIm peinta of 10096 


Strike 

Price 

8500 

KBS 

8650 


rain — — — — PUTS 


ii 

Aug 

Sap 

Dec 

Jti 

*>9 

Sep 

ais 

ais 

022 

026 

0 

aoi 

004 

0 

053 

aoe 

0.13 

ao7 

aio 

013 

0 

aoi 

002 

aoe 

032 

033 

034 


Esl moL total, CaCs 3110 Pirn 4485. fttetam day* opan tt. Cm 22SS83 Pirn 15+835 

■ bwo awissmuctyremspJFpgsftim points of ioo% 


Dec 

0.16 

028 

046 


Softs 

Price 

Sep 

- CALLS - 
Dec 

Mar 

Sep 

PUTS - 
Dec 

Mar 


an 

0.14 

0.19 

aoa 

030 

058 

9600 

ao* 

057 

on 

057 

048 

0.78 

9G2S 

052 

n m 

058 

050 

069 

096 

E* VOLSM. 

Cate 0 a pranave flays open tt. CNs 305 Pies 11S5 



BASE LENDING RATES 



% 

Adam&compwiy „ 

— 625 

AJud That Bar*.... 

—525 

AS SerW 

— 625 

■Horsy Ansbachsr... 

— 525 

BankorBaada 

_ 625 

Banco Bbao itaas- 625 

Bark at Cyprus 

... 625 

Bar* ?f intend 

... 625 

BamofhtSa 

—.625 

BamdScoBand..- 

— 625 

Bad^Btnk 

— 526 

at Bk or ud Ski.. 

- 625 

•fto»n9iMw&Colkl526 

Q-SrtcNadartmd 

_. 5l£s 

OfeenkNA 

— 556 


OydBBddeBnfc 525 

ItB CoapsKOw Bank, sag 

Co^te&Co -L25 

CraatL^mnaia Bis 

Cyprus Poplar Bank _S23 


% 

Duican Larta — &3S 

Boer Bank Untad.. R2S 
RnaneteAGanBart-. 6 

•Habert nanano * Co - 52S 

Qhobank 525 

•GUnrvsa Uanon 525 

HAD Barit AQ 2>leh . 6S5 

■HBri ra Ba ric 025 

Hertatite&Qenlnvai.OS 

•HBSanuL S2S 

C. KtonreiCo -626 

Hangkmg 3 Shan^teL 626 
JufanHottoB Baric..- 525 
WeapeNJoao^ASnUB 

UOydsBeric _525 

Ma^yaj Bank LB 625 

Mriand Baric 025 

' Moud Banteig 6 

N adW n an fa inte r 52S 

•ftaBriw 525 


% 

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14 


FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


Aityo-Earfam H a nMfl rtt PUG man a to 
aub for Ord - 23 

Anrf orad Ld N Ord ROOOOI - SH\ 27 AS 

a 

Asdfl Preparty rtdga PIG 10 5/18% lot Mg 
Oeb S& «m - £102*2 fll Jy«) 

Asprey PLC Cun Pit El - 107% 8% 

pjyW 


shown ***** ^ baa" taken with consent 
from test Thursday's Stock Exchange OffidaJ List aid should not be 
reproduced without permission. 

palate relate to those securities not Inducted in the FT Share information 
■uorvicftH 

, . V 1 ^ 88 . at *] afW13a indicated prices are in penes, the prices are those at 
WWch the buonass was done in the 24 hours up to 5 pm on Thursday and 

saned through the Stock Exchange Tartarian system, they am not in order of An o wims atm e ngmafg pig is% 
hut in ascending orter which dendss me day's highest and lowest £S2&3!2*mB**um,. 

1 ^Jf?*** j" bu “ n ** s *» recorded in Thusday’s Al^^pS ATO (S/! 

Oron List the West retarded business in the four previous days is given tthooda finance nv s%p Ga Red c™ ph 
wrtn the relevant date. fip-93naw 

. "XP* 0 ** by the Internationa] Stock Exchange 

of the Umted Kingdom and the RapubSc of Ireland Ltd. nrowet - 78fi ,J y«} 


LONDON STOCK EXCHANGES Dealings 


t Bargains at special prices. 4> Bargains done the prawns day. 


Brttish Funds, etc 


Treasury 13?t% Stk 2Q00U - £125% 
Gumraoed Export Hnanco < 

<MI 


ntreef Export Rnancs Cam PLC 12%M 
1 ui s» zmpma . ci*i£ najyw) 


Corporation and County 

Stocks 


London Gouty 3%% Core Sto I920tor afial 
-€27*2 

Bbmbtyum Corp 2>2K Sft laaetw SUM - 
Ezsfiawi 

Bkmktyuni Carp 3% Sto 1947fer ate) . 
C30% (ISUyflfl 

anrtnohom Corp 3% (1900 1832f« ate) - 
£3aCtZty94J 

BfcmktyMm Corp 3%% Stk 1946(arxflM - 
£3snzjysq 

Oackbum Cop 3%% IrrdSto - £35 (12jy94) 
(XsSsy Motrepofiun Qotxjgh Gouncf7% Ln 

S» 2019 iro£«f/i>) - cai\ a 

HHO*p3%« Sttpar faty - C34 (BJy34| 
Kreataflion S QvKsee^Hoyal BonMrf)11.15% 
Hod sac 200S - cm (i3Jy*q 
lmda(C»y on 13*2% Rad 9* 2000 - natrt. 
V2JtW 

Lincoln Corp 3% Rod sac leigtor mart - £30 
PJy94J 

SaBoM/Cttyofl 7% Ln 9» 20l9(RenXF/P) - 
£82ft (13Jy94| 

SrranwBCorpS«M3>2%)-E3bP2J»9^ 

UK Public Boards 

Run Pom Autfcxty SMU, Functed Dots - 
£39(12Jy94) 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

teDo.*ir>eJra|Stteo/)a^ 7% SOgLn 
ieZ7(Ptan A -new 2%%) - £88 (11JyS4) 
Abbey Nation* Stalina Capte PL£»4,« 
SrtwM Old Bets 200a<BrfVara} • CK& >2 
Abbey f*Mond Treeoey Sores PLC T\* 

CM Nts 1906 (Br £ Var) - £982375 % Jt 
Abbay Kaflonof Tramy Sow PLC 8% gm 
B da2003(Br£Vte)-£33%42 ft 
Acu JnoontoratBd 416 Bds 2oai(Brsioooo) - 

3221 221% 

AiW« <Z**V RG 6%* Bda r<XM(Br£VM - 
CHk 

Barclays Bank PUS 69* Nts 2004(Br£Vat- 
oua) - £84* >1 (13Jy9«) 

SaxSaya Bonk PLC 7 jars* Undated Sutxad 
Nts (BrCVarJ- £88(11 Jy»4) 

Bodays Bor* PLC 916 Psrm fnt Baaing 

CapMBc«EWVto)-aM% \C12tyM} 
Bwctjyo Sink PLC 8975% Undated Sutwd 
Nta-CsaU p3Jy94) 

Barctays Sank PLC «H*1b Sen Se4> Bus 
1B97gr£10Q0&1000£J) - C104T, |BJy94| 
Barings PIC 8V% Pup Subord tta (atVart- 
ausT-taeftl, 

Bradtoid a Bb^ey BuSdng BodotyCoteed 
F«B Rt» Nts 2003 (Br £ Va) - €83 85 
* BrtsW S Wost BuBdtng SocMy 10tiH 
SUxxtl Bds 2C18 pr £ Vafl - C103.7 ^ 
Brash Gas Ml Rrenca BV BVK Old Bds 
1S97 (Br $1000810000) - 389.7 piJyM) 
Brttah Gas M Rrencs BV 10<«W GW Sds 
199d(Br sciooo&ioooq - SCI 02% 102% 
(BJy04) 

Brfttsh Gas Ml Ftaanos BV Zoo Cpn (3td 
Bds 2021 (Br SVu) - S1QJ5 CtlJyWJ 
Brtteh Gb 3 PLC 7%9t. Nts 1997 (BrCVart- 
£88% 9% (11JyB4) 

Br*hh Gob PLC Bds 2000 (Br C V») - 
£8Bp3JyS4) 

Brttah Goa PLC 8%% Bds 2003 (Br £ Van - 
ES6A .325 % (13Jy84) 

Bah* Land Co PLC a«7SK Bds 2023 (Br £ 
Vgr) - €91% (12Jy94) 

Bitbah TekHsnwnurikaOam n£ Zen Can 
Bdn 2QOO(Br£iao08iaOOq - BS2% 

British Tetoaomrnudoadam PLC 7%N BdB 
2003 (Br£ VW|- £91 

Brush Tetooonnwfatdam PLC l?%« Bds 

2006 - £12Sh (13Jy94) 

Bomuh Cwm* CapnufjsiMyl us «%« Cw 
Cnp Bds 2006 (Rsg BlODO) - £148% 

CHH Capttd Ld SAW Cm Cap BtSa 
20O5(BrSSaO0) - £119% (11Jy84) 
Dsnmart^KingdMi o(J Nts 1998 (Br £ 
Vori-£9S A(12Jy94} 

(MviwMKIngdan oQ 11%K Bds 1984 - 
C1CXL37 (13JytK| 

Oepca Rnanco K.V. 7%« Gtd Bds 2003 (& C 
Vu)-EB8%.65(13Jy94) 

EMm Ssctrtdty PLC 9%% Bds 2004&C 
van - E8SJ4 Ci2JyM) 

B( Enterprise Rnanco PLC 8%M GM Bn* 
Bds 2008 (Rty ESOOQ - E8B>2 % 4 
(13J»9«) 

Bf Enterprise Hranos PLC 8%1b Gtd Exch 
Bds S006(Br£300031 00000) - £87% % 
BWjfM) 

F1rUand(Repub0c at) 9%% Nts 1887 (BrC Vat) 

- £104286 

FWandpoputflc aQ 10%% BOs 1988 • £100 
piJjrfW) 

Fcsia PLC 9%K Bds 2003 (Br £ Vsd - E96A 

»Jy94) 

GESB PLC 625% GM Soc BUS 2018 
JBrElOOOJ - £94,i p3Jy94) 

Greycoat PLC ftS% Bds 2003 
(BrClOOOO&IOOOOCO - £88% (BJy9J) 
Guaranteed Export Rnance Carp PLC 9%% 
Gtd Bds 2008 (Bf C V») - £104% f13Jy9^ 
QnMead Export Phunce Corp PLC 10%% 
GM Bds 2001 (BrtVw) . £109,*, 

GuMiwe PLC 7%% Nto 1897 (Br C Vw) - 
£98%P3tyM» 

GiMness PLC 10%% NTs 1997 (Br £1000 & 

1000c? - noe% % 

HaBtax ButdriQ Sochty B*a% Bds 2004 
(Brfnoco. 10000. JOOOOffl - £84% 

Hatlm Buadnq Society 7%% Nts 1996 (Br £ 
Vto)-EW.1% 

Htotox BuMng Sodsty Rtfl Rate Ms 
199S(Brf1 0000860000) - £99£9 100 
(Bty94) 

Haltex BuMng Soclsty Catered mg tVe Ms 
2003 (Br£ VaO- CBSJj (13Jy9^ 

Maraor. PLC 9%H Cm- S**WJ 2006 (Br 
CVao - £109% % (13Jy94) 

Hanson PLC 10%% Bds 1897 (Br £V«) - 
C105(12jy94) 

Hantsons A OiisMd PLC 7%% Su* Cm 
Bds 2003(®rC1000« 1000C? - £103 <8Jy94) 
I np M Id CMMto IndueaM IRC 10% Bds 
2003IBl£1000510000) - £104% (12jy94) 
Imperial CMMdlMuuasnfi 11%% Bds 
1993(845000) - £102 C11Jy94) 
bitsmattonU Bank lor Hoc A Dev B%% Bda 

2007 (BrCSOOOJ - £103% 4% 

Intortv a tlonal Bank ter Bee A Be* 10%% Nts 

1999 (BriSBO) - £106% (t2JyS4) 
Uy(BapuUc OH 10%% Bds 2014 
IBlCIOOaaASOOQO) - Clio (12ty941 
Kensol Electric Pww Co Inc 7%% Nts 1908 
(Br C Val - E9Q\J 

Kyushu Electric Fewer Co hw 8% Nts 1997 
IPr CVM -539% 100 (12Jy94) 

Lodbnhe Group RnffcepwsaylLjd »% Crw 
Cu> Bds 2005 (BrfSOOO&IOOOOQ) - C98% 

7%nuy94 

■ LAM Securttes PLC 9%M BdB 
20O7(BrfM000&1Q00OI - £100%* 

Lam Securitas PLC 6%% Cnv Bds 
2OO209rC1OOOJ - £98 (BJy94) 

Land SecuMea PLC 8%% Cnv Bds 2004 

(Brisooo&saooa] - £111%* 

Leeds F er ma ner* Bu8*no SocMy 7%% Nts 
1997(BrCVaO - £97% (11Jy94) 

Loads P et m ansrt AAtng Sodety 7%% Nts 
1890 (8r C Vari - £97 
Uoyds Bank PLC 7%% Sudani Bds 

MOUBrWariare) -E88.1 % 

Lkryds Bark PLC Sthard Rto fte NUB£ 

Vats) - C10ai7 100>2 r»1JyW) 

London Elaceidly PLC 8% Bda 2003 (Br £ 

Vail - £84% (lSJyS4) 

ms’c plc o%% Bds axMptioaotiaooo} 

-Cl 01 A (i3Jy94j 
MEPC PLC 1D%% Bds 
3003f&£fOOU100DO) - £101% 2% 

(l2Jy94) 

Neoorel Grid Co PLC 7%% Bds 1998 (Br £ 
Vari- £90% 

HMtond Paswr PLC 10%% BttE 2001 (Br 
5MOOOO&1 00000) • £107 jQ 5 (12Jy94) 

TtoDonM ft ftwheM Bldg Soeury 8%% Ms 
19B8(Br£Var)-C98A 
NsBond WssimnsW Bank PLC 11%% 

SUMtd Nto200i (St filta) - £112% 

<i3Jy»4 


MMorM WestnMer Bank PLC 11%% Und- 
BubNtS E1O0Q(Gnv to PrflOeg - £108% 
(taiyM) 

Natkand Wostnwtster Bank PLC 11%% Und- 
SubNB £lOOO(Cm » PrftBr - £106% 
nuyufl 

Natenrida BUkSng Sadocy 1 1%% Ms 1995 
(Br Esooo&iocam - CU&975 fttJysg 
NaUonwKJa BUkSng Society 115% Subord 

Nts 20W (&■ nflODCJ - £119% 

NBOOnwMs BuSdng Soctaty Zero Cpn Nte 
1996 (Br £ Maf - £70% (12JyM) 

Northern Rock BuCdkip Soclsty 10%% 
StMora Bds ZOTB (Br C Vari - C«MZ % 
(12Jy941 

NarttssiMnan water Graw> PLC S%% Bcb 

2002 CBr£ Var)- £101% 

Osaka Gas Co Ld 8.125% Bd* 2003 (Br £ 
Vto) - £93% {11ty94) 

Pearson Sterling Rnence PLC 1Q%% GM 
Bds 2002 - £107.2 (12Jy94) 

PowwGen PLC B%% Bds 2003 (Br 
£1000051000001 -£90.7 0Jy% 

RTZ Canada he 7%% Gtd Bds 
taaeCBrCSOOOAIOOOOO - £95% {J 
RaiWtt^nention PLC 8%M Bda 2000 (BrC 

Recaand Capttel PLC /%% Cnv Bda 
2002(B(£1000A100QO) - C1C3(11Jy94) 
Robert Rendng km FVima Ld 9%% Parp 
SuboM Gtd Nb (Br £ Vari - £86% 

Robert nenMg NedNriaxls BV PitnCapUnd- 
FtHJRateNta (Brt10000A50000) - £86 
niJy94) 

FtothBChids CortUnuadon Fir(CJ)Ld9% Perp 
8i*otd GM Me privation) - €84*2 
Royd Bank at ScotMid PLC 6%% 8>to 
2005{BriVjrS| - 534.74 
Royd Bank of Scotland PLC9%% Undated 
Subctd Bda (Br E War) - £94% 

Royal tauence Hdgs PLC 8%% SttooM 
Bda 2003 (BrC VaO -EB&7 
SdnsburyW) PLC 12%% Nts 
lassiBrtnoooaioooo) - ei03%* 

Stonsbuy (J Jpunnai Mands)Ld 
6%%CmCap8ds 200S(Br £50005100000? - 
£128% 9 

Severn Tran PLC 11%% Bds 1998 (Br 

esoooAiooaoai - eiiiA 

Severn Tram PLC 11%% Bds 2001 (Br 
£50005100000) - £1105875 (BJyBg 
Skioere NawgaSkxi CcxporsOon 3.75% Bda 

2003 (Br 3100005100000) - 3103 
Sough Estates PLC 10% Bds 

2007(BfCl 000510000) - £99% % f12Jy94) 
SnathMIne O e e et iam CssxM PLC 7%% GM 
Ms 1888 & £ Vto) - C98A % hSJyM) 
SmKhMbia Baactwn Capital PLC 8%% GM 
Nts 1998 (Br £ Vat) - (SB V 
Tarmac France (Jersey) Ld B%% Crw Cap 
Bite 2006 (Reg £1000) - £104 
Tote & M Rnance PLC 8% GM Bds 
1099[&Cl 000051 OOOOra - £86 (12Jy9* 
Tate A Lyle M Rn PLC 5%% Gtd Bds 2001 
(Br £5000) - £6*% % ft 1Jy94) 

Tate&Lyle MRn PLCVTMaSLyie PLC 5%% 
TautFnGdBdS 2001 (Br) IWWtoTALPLC - 
1341^%* 

Tosco PLC 8%% Sds 2003(Br£VlM4(Fyft6 - 
£966 (12Jy94) 

Tesco GapNd Id 9% Cnv Cap Bda 200S(Rag 
C1)-C117% % 668 
Tonco Capital Ld 9% Cnv Cap Bds 
2005(BrCXMO&10000) - £112% (|) 

Thames Water PUS B*i* CnvSUbor 
2000(Br£50a0a50000)-C118(13Jy94) 

31 MetMOand BV ?%% GM Ato 2003 |tt £ 
Var) - £90925 1.28 
TraOtyar House PLC <0%% Bds 2014 
(BteiOOOO&lOOOQO) - £105% A 
Ttosauy OatparaHon or Victoria S%« gm 
B ds 2003 (Br £ Vm) - £87 A (12Jy84) 

U-Mng Markie Transport CorpcvqDanl %% 

Bds 2001 (Rag ki Ml* 51000) - S94 
Urttod rangdam 7%H Bds 
1 997(BrOMlaOO&iaOOO) - DM103.15 
nary94) 

W«burg(S.GJ Group PLC 9% Petp Sctxwd 
Nts (RopNtaOrQ - £88% (13Jy84) 

Welsh Wttar IMDes Finance PLC 7%% GM 
Bds 2014(Br£VariO>/P) - £1195 
WooWch BUkflng Scckty 7% Nts 1996 (Br 
CVte)-«®%(ajy94) . . 

woctaa* BukSng Sodery 10%% Sttod 
Nts 2017 (Br E Vto) - £102* 

Yuen Foong V« P^mt Mlg Co Ld 2% Capo- 
raw Bds 18990310000) - 8118 (12Jy84) 
FMand(Rapu60c ofl FFetKOm t% Dabt Ins 
15/8/2004 - FRB5.15 (12Jy94) 

H«ax Bubtoig Sooefy S25flm 4%% Nto SOT 
4«»rSV»1'S97%fl79 
Naer South Wtoas Treaswy Corp SA/Om 7% 
Global Ex Bda 1/2/2000 ~ £1 (m»94) 
SwsdanOOngtttxn oft EfiOOm 7%% Nta 3/12/ 

97 - £98945 937 9 % 
fttedtoigangdan ol) EZSaw 7% twtnxna nts 
23n2A» - £95% (12Jy«) 

Srmdar*Ongdom cfl BCU400m 895% Dabt 
Instr S/5/99 - EC84.7 85% (IZJyBfl 
StoedenQOngdom cl) £3Skn 7%% Bds 28/7/ 
MOO - £94% P3Jy94) 

Sterling issues by Overseas 
Borrowers 

Aden Dm toe s* ran t Bor* 10%% Ln Slk 
sam*a -CII0%(8Jy8fl 
■ere o( Greeae 10%% Ln Stk 2010ftog| - 

Offhl 

European Investment Bank 6% Ln Stk 2001 
fftog) - £102% h (t3Jy94) 

Euppeon Mveatmant Brek 8%% Ln Slk 
2008 ■ CI06A -3625 (ItJyfrt) 

European bwestment Bank 10%% In SBt 
3004(Ri)g) - C111% % .825 
European K ura W i w it Bank 11% Ln Stk 
2002pea - £113% % 03Jy94) 
taetandfftepubic of) 14%% Ln Stk 2016 - 
£141%i8jy94) 

(ntemakinai Bank lor Rac & Dav 8%% Ln 
s«t2(nopea)-ci08 

New Zsrfand il%% Stk SOStegl - £118% 
PoctuffdPap ol) 9% Ln Stk 20l6(Rag) - 
€101% (13Jyfl% 

PortuBalfftep ofl 8% in Sto 2016(Br) - £101% 
(13ty64) 

Phwtoce da OMbac 12%% Ln Sth 2020 - 
£127% (12Jy84) 

SpaMKngdom of) 11%% Ln Slk 33100*0) - 
£121% »1Jy04) 

S-eedenlMnodom afl 139% Ln Sttc 
MIOfRog) - £137% 

Tmnecamctt PMtones La 18%* 1st Mta 
PMs Una Bds 2007 - £145 (13Jy84) 

Listed Companies(exduding 
Investment Trusts) 

ASH CxXtal RnoncelJomeriLd 8%% Cnv 
Cap Bds 2006 (Reg Units 100» - £62 
(13JyB4) 

Abtruel AUaa Fund Sta ol NPvtUnaed StateB 
PanfoRo) - £2945344 (SJy34) 

Arecene Group PLC 7%% Cnv Red Cum Prf 
Cl - £2% n3ly94» 

Atone Mtoeyslen Grmrth FundtCcMmanlLa 
OMSOjOI -311% 11% 11% 11% 

Airflow 3a e u» re n ts PLC 10% Cum Pit Cl - 
104 (13Jy94) 

Atene ndw A Atounte Services tnc Sta at 
CLcts C Com Stk 31 -£10% (12Jy94) 

Atacen Group PLC &25p INM) C*tv Cun Red 
Prt lOp -49(13Jy94) 

ATiea-Lyans PLC ADR (1:1) - 3892 8% 
oaJy«4i 

Alked-Lyons PLC 7%% Cim Prt £1 - 78 
lilJyOO 

AtoM-Lyens PLC S%% Urn Ln Stk - £S7 
(HJy94) 

ANed-Lyons PLC 0%% Ura u, Stk - £63% 
Ci2jy«) 

AWerW-yara PLC 7%% Uns Ln Sfc - C80 
n3Jy9R 

Atood-Lyora PLC 7%% Urn Ln Stk 83AM - 
£96 

ATted-Lyons Ftrancial Services tyOS%% 
GMCnvSte)aidBda2008 RogMulBEIOOO - 
CIOSlj % 

ABed-Lyons Rnandoi Senncee PLCfl%% GM 
Cnv Suborti Bds 2O0OC9r £ Vari * £106%* 
AMs PLC 59% Cnv Cum Non-Vtg Red Prt 
Cl - 73 (BJy94) 

America n Brands lie Sto or Cam Stk 53.125 
-$31% 

Arreritech Corp Sns or Cam Slk $1 • S38% 
nah«4) 

tagflan Ware plc 5%% todm-unked UStk 
ax»»2576%) - £131% paw 


Automated SeojriMHklgs) PLC 0% Cnv Cten 
Bad rtf £1-58^60, 

AutnmaUve Produd* PLC 8% Cwn Rf £1 - 
TO0(Uy84| 

BAT todujMM PLC ADR (2:1) - 313.18* 


FT-SE ACTUARIES INDICES 

The FT-SE 100. FT-SE MW 250 and FT-SE Actuaries 350 indices and the 
FT-SE Actuaries Industry Baskets are calculated by The International 
Stock Exchange of the United Kingdom and Republic of Ireland Limited. 
O The international Stock Exchange of the United Kingdom and Republic 
of Ireland Limited 1994. Afl rights reserved. 

The FT-SE Actuaries All-Share index Is calculated by The Financial 
Tones Limited in conjunction with the Institute of Actuaries and the 
Faxdty of Actuaries. O The F/nancal Times Umttad 1994. Art rights 
reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-SE Actuaries Art-Share 
Index are members of ti» FT-SE Actuaries Share indices series which 
are calculated in accordance with a standard set ol growd rules 
established by the Financial Times Limited and London Stock Exchange 
in conjunction with the fnatitute of Actuaries and (he Faculty of Actuates. 

“FT-SE* and “Footsie* are joint trade marks and service marks of the 
London Stock Exchange and The Financial Tunes Limited. 


BET PlC ADR (4C1) - S8%* 

BM Qav PLC 49g Cnv Cum Red Prt 
2DP-51 

BOC Gram PLC ADR flrl) - 31098 (1?Jy94) 
BTPPLC 7Jp(N»i) Gnv Cun Red Rf ICp - 
187 

87R PLC AOH (4.1) - 524.12 (13J&41 
BetetfOR) PLC -B- OM lOp - 25 (1 14y94) 
Banpton Hsdga Ld S%% (An In Ok 2002/07 
- £90 plJySO 

Btortptan nopeny <teoup Ld 7%% Lkai Ln . 

SD^jn«^-ES0C11Jy94) 

Bangkok tovuetmente Ld Pig Rad PrfJOJJl - 
3120t1iJy84) 

Bank of N«d|0asamr 8 Co ot| Unto NCP 
Mi Bra A £1 8 £8 UqukMfan - £11% 
(HJyflA 

Banner Hemoa Bnp PIG CM lOp - 131 5 5 

8retyys PLC ADR (4si) - 333% 

Barctaya Bank PLC 12% Un Cop Ln Slk 
2010 - £120 (12ty94) 

Bscteys Bank PLC 16% Uns Cre Ln Slk 
2002/07 - £138% (13Jy94) 

Barton Group PLC 7 95p *toO Cnv Red Prf 
26p-8B 

Breton Group PLC 1195p Cum Red FW 
2005 ICp - 106 

Battoge PLC S%% Cum let Prt Cl - 72 5 
(1UyM) 

Bartogs PLC 3% Cum 2nd Prf £1 -87* 
Barings PLC 9%% Noo-Cum Prl £1 - 118 % 
% 7 (T3JyS4) 

Bare PIG ADR pti) - £105451* 

Bees PLC 10%% Oeb 96c 2016 - £115 
fi3Jy94) 

Ben RC 7%% Uns Ln Stk 82/87 - £86% 
Bass Investments PLC 7%% Una Ln Stk 92/ 
97 - ear 

BeOany PLC 89% Cun Red Prt 2014 £1 - 
1I1%(1ZJy94) 

Bergeaen Oy AS ”B* Non Vtg Shs NK2i - 
MCI 68.16 97 

Bkirtnghem Mktohkes BuflUtog Sac 9%% 
Perm Int Bearing She £1000 - £0795 8 AS 
% % 9% 

Oectotoiod Hodge PLC 9% Cum FM rtf Cl 
-30%(12Jy94) 

Btodtousier Entartatament Corp Sha Com 
Sflk 58.10 - 328% (12Jy64) 

EBUe Ckcto Innustriae PLC ADR prf) - 3598 
Btoe Otto tnduokiea PIG 6%% am ore Sto 
1984/2008 - £72 P2Jy9« 

SkM Ctrde ImfcBtriea PLC 6%% line In 
Stkp97S cv fffi) - £84 P3ty84) 
aian te fl Pennutf i mi Hdga PLC7%% Una 
Ln Sto 9005- £85 p3Jy84) 

Boots Co PLC ADR (2ri) - 31896 
Bradkvd & Bbtyey Btridng Socletyt 1%% 
Perm Int Basing She £10000 - £114% 3 % 
• 

Bradford A Bto^ey BuMng Sodaty13K 
Perm Int Bevtng Shs £10000 - £126%* 
Bradford Property Trust PLC 10%% Cum Prl 
£1 - 120 (11Jy94) 

Bant WaBear Otiup PIG Wta to Sub tor ond 
- 1 

toent WaGow Group PLC 89% 3rd Non-Cum 
Onr Red 2007/10 £1 - 2% % 

Btatol Water PIG 8%% Cun tori rtf £1 - 
ill piJyS4) 

Bristol Water PLC 4% Cans Deb 96c tori - 
e43%p3Jy64) 

Bristol Wator Hdga PLC Old £1 -350 
Bristol Waft* Hdga PIG 8.78% Cum Cnv 
Had Pri 1896 She £1 - 186 p&M* 

BMC* ft West BiMng Society 13%% Psrm 
M Bearing She £1000 - £120 
Britma BJdtog Soclsty 13% Penn tot 
Banring Shs £1000 - £123% % 4 % % 
BriOeh Atoeeye PIG ADR port) - 366% 95 % 
798 

BritMh&Aroericre Fbn WdgePLC OM Stk 
Sp ' £8% 9% piJysfl 
UWvMricei Tobacco Co Ld 3% 2nd 
CUn Prf Stk Cl - 60 3 p2JyS4) 

Brttbh Petroleum Co PLG 8% Cun 1st PM £1 
-78% P3ty94) 

Bntbh Pebofaum Co PLC 9% Cun 2nd Prt 
£1 - 87 a P3jy84) 

Mtoh Ffotythane Industries PLC 995% Cun 
Red Pt< £1 - las Cl3Jy94) 

Brtdah Steal RC ADH (10:1) - 324% AS XT 
5 6 92416 % % 9741 

Btflteh Sugar PIG 10%% Red Deb Slk 2013 
-CI17* 

Brtxtnn Estate PLC 890% 1st Mlg Dab Sto 
2ffl0-E98%(8Jy94) 

BrtXton Estate PLC 10%% 1st Mlg Deb Sto 
2012 - £114% p3Jy94) 

BUnw*LP9«d|% PIG 8%% 2nd Cun Rrt 
£1 -1®%* 

Breiw8iP>tolgsPLC9%%OanPM£1 • 

110 P2Jy0«) 

Bund PIG 7% Cnv Una Ln Slk 85/97 - £103 
C13Jy«4) 

Bumah Caatrol PLC 8% Cun Prt £1 - 78 
Bumdrea Inwslntonts PLC 15% Una Ln Stk 
2007/12- £117 (8JyS4) 

Burton Group PLC 6% Oiv Uns Ln Sto 1988/ 
2001 -£84 

Butte Mrflng PLC 10% *teQ Cnv Cum Rad 
Frt1BB4 10j>-3p3Jy94) 

CA1A PIG 4% Cun Red W £1 - 32 P2J»e4} 
CRH PLC 7% *A‘ Cm M kffl - BSL7 
CalHamia Energy Co toe Shs of Cam Sto 
309675- £1091622* 

Crettridga Wetu Co Cam Ord Sto - £8400 
PUTS* 

Capitol & CouiOes RLC 9%% latMtgDeb 
Sto 2027 -n02%«Uy94} 

CMlon CommurfcaBona PIG ADR *2:1) - 
»79S 

Canton ConenunkaUona PLC 7%% Cnv 
Subord Rds 2007(Reg £500t? - £133 
P2JyS4) 

Casket PLC J{L25» Cun Prf Cl - 110 
<Wy»4> 

CataniBar toe Sha of Oun Sto 31 - *100% 

(13Jy94) 

Centex Cbrpamfloii Sha at CUn Sto SCL25- 
S2S 

Oarteoad AOance Mdgs Ld 7%% Uhs Ln 
Sto50p-38(BJy84) 

CMtertoam 3 Gtoucaater Butof Soc 1 1 %% 
Parm int Bearing Shi £50000 - £1 16% 

975 

Chepstow Racecourse PLC Oni 26p - £6 
tiSJy**} 

CBy 9 *b Estatoe PLC 595% CSnv Cwn Red 
te/Cl -67pijyfi4) 

aty San Estmem PLC 7% Cnv Uns Ln Stk 
2005G6-EB8 

Oeyltohe PLC 99% Stewd Cnv Une Ln Sto 
20WMH - £80 (HJy®4l 

Caestto Corporation Sha ol Cam Sto 3093 V 

3 - $29% f13Jy94) 

Coste PMone PLC 4%% Uns Ln Sto 2002/07 

- £*4 01*94) 

Coats Pakxs PLC 6%% Une Ln Sto 2002/0/ 

- £81 fl 1 Jy94| 

Caeto ViyeSo PLC 43% Cum Prt £1 -67 
(13Jy94) 

CctonW & Co PIG NoaV *A- Ord 20p - 
460 

C u rai wro M UNon PLC 8%% Cum art pti 
Ci - 106% % 

Commercial union PIG 8%% Cum hid Prf 

et • 107 % 

Co-Operators Bank PUS 92S% Non-Cum km 
MCI - 111% % 

Cookaon Group PLC 49% PM One GOp - 35 
(Iijy94) 

Cookaon Group PLC 49% Cun Prt £1 - » 
(11Jy94) 

Cooper (Fredreck) PLC 69p *MQ Onv Red 
Cun Prg Prt 10p - 94%* 

CoutoUds PLC 5*2% Uns Ln Sto 84/96 - 
£96 

Ccu&itoh PUS 7%% ttes Ut Sto 200006 - 
C88 9 ClOlytt) 

Coventry Burictog Society 12%% Pren Xrtmr- 
est Beotig She £1000 - £115%* 

Oaly Mai 6 Genual Tiurn PIG OM SOp - 
C132(T3Jl«4) 

Odgety PLC Cun Prt £1 - 67 (12JyB4) 
Daben ha na PIC 7%% Una Ui Sto 2002/07 - 
EB4 (I3jy9* 

OMta PIG 10%% Deb Sto 85/99 - £102% 
<8Jy94) 

Dencm PLC UW Cun Cnv Rad PM £1 - 
108 

Dewhuret HG Ottl lOp-69 (11Jy8fl 
Dowr Corp Com Sto SI - $58% (12Jy84 
Dirtcp Plaxaticra Ld 6% CunW£l -62 
(13Jy94) 

S On SMngiExpkxsOon Ctr FLC CW lOp - 
6B3 

Bya(l»6nbl«foni «G OM 25p - E495 
Emess PLC 62Sp(Nel) On Cun Red Prf 5p 
-635 

EngRah Cim days PLC ADR (3:1) - $15% 
6k3aor^LA^^ela^o^al(^fcbcfto^ 

8tReg)SK1Q - «387 7 8 6 % 984158 9 9 
9.7 400 4001 l-48962293%594 
Essex and SulMk Wstor R£ 8%% Rad Dab 
Sto 97/89- £104%* 

Eases and EuOOto water PLC 11%% Rad 
□eb Sto 200ZAM - £112% (12jy94) 
EiOBOsneySGA ShtBSIDapatoy 
Receipts) - $2.15 p 122 3 B 
Sao Dteity SGA Sha ffl5 PD - mi 19 9 
Eurotunnel HG/&sotumel SA UKB 
(Sfcwam haadietQ - £274* FR2 2 %* 

66* 

Wore /Wdhga PIG CM Sp - 116 fl£/y9* 
FWayiitoneaiPLG 42% Cun 2nd Pit 3k £1 
-6l(13Jy941 

FtKfaury Avmua Estates PLC UK 1st Mlg 
□eb Stk S014- E11« j$ 

Ffaat Chicago Carp Cam Sto 55 - 548% 

Ast NaUanal BuMng Society 11%S Pern 
Int Bearing Shs £10000 - EiQ2%* 
f%3t Nabanto Finance Ctap PIG 7% Cm 
Cun Red Prf £1 - 130 
Fares PIC ADR (4:1) - 58% 93 (11Jy94) 


Recta HG 5%% Una Ln Sto 2QO4/Q0 - 870 
(t3J»9a) 

FoOtes Group Pl£ Ord 5p~ 41 3(3Jy94) 
Forte PIG 3.1% Una LnSk 86/2000 - £89 
100 

Putrun a Mason PIG Oni SK ei - OH 
OltyS* 

Friandhr HoMa PIG 4%% Cnv Cun Rad M 
£l - 73 fDy£K) 

Frtendy HMtte n£ 7% Cnv CUn Rad Prf £1 
-86niJf«4) 

FiAerGnath a Twnar PIG 8% 2nd Cum Prf 
£i-89 PJM 

09* PIG ADR (1:1) - $9% (11Jy64) 

GN Greet Nonflc Ld Sha OKIOO - 004697 
8 

ar.CMednMifi Fund U Old S0L01 -328 
Gerarsi Aoddert RG 7%% Cum krd Prl £1 
■ 100% M 

General Acadant PLC 8%% Cum Irtd Pit £1 
.106%% 

Grearto Are FMBLHe Aaeo Coip PLC7%» 
Una Ln Sto 92/97 - G9B% 

GonaM Electric Co PLC ADR (Irf) - 5422 
Gestetner HkJga PLC OrI Cap Kp - 145 
Gfcbs a Dandy PLC CrcMOp - 38 85 
f13Jy94) 

Gbaa Qrep Ld 7%% Uu Ln 96( BS/K SOp 
-49* 

Gtynwao Wamaoorar PLC 7%% Cum Prf El 
-74(11ty94} 

Qymrod Memaaonel PLC 10%% Une Ln Sto 
84/99 - £98 

Grand M atropoi he i PLC 8% Cum Prf £1 -53 
Grand MMopdkre PLC B%% Cun Prf Cl - 
84 p1Jy94) 

Great UHvarasl Staras PLC S%% Red Ura 
Ln Sto - ESO (!3Jy94) 

Grant IMvaraal Stores PLC B%% Red Un 
LnSto-£B4(12JyB4) 

Greuwo Gm* PLC 6% Cun Prt £1 - 104 
(13Jy94) 

GreeneB* Grtap FriG 7% Cnv Subud Bda 
2003 (Reg) -£104% 

GUrmeae PLC ADR fScI) - £22.16* 3 34%* 
HSBC Mtys PIG Old 3H10 (Hang Korn 
Rea - E7JD6 SH8494835 5% 9 933622 
95785 -494501 % 92 91 .753536 
HSBC tfldga PIG 1128% Subord Bds 2002 
(Reg). £105 8 10% 

HSBC rtdgi PLC 1128% 9ubord Bds 2002 
(&EVte)-£l11fi 

Hefitei BukAng Society B%% Perm Int Bear- 
ing Shs £50000 - £86% 

HeMax Bufcgng Society 12% Penn H Bear- 
ing She £1 (Reg GSOOOC? - £118% % 
C13Jy94) 

HeMn HokUnga MG Old Sp - 60 
KM Er^neeringOfldg^PLC 525% Cum Prl 
£1 - 65 tiajyfrt) 

Hammeraon PIG Ord 2Sp - 350 1 2 4 7 8 9 
Hardys a Kreams PLC OM Sp - 248 
Haabro tec Sha ol Com 8to $020 - 329% 
(BJy94) 

HanUea km Shs ol Com Sto of MV - 
$107% fl2Jy84) 

Hevrttt Grore PIG 10% Cun Prt £1 - 100 
(1!Jy94) 

Ml Sernud StertnQ Read tot Fd Pig Red tof 
Ip - 124 (BJySM) 

Hetem Pratedfre Group She cl Com 8to 
025 - 2630 

Housing Finance CcrporUfon Ld 11 %% Deb 
Slk 2016 -£113 (BJy94) 

IS Mrmteyen Fred NV Old FUL01 - 3162* 
19%* 

Iceteid Qrare PLC Cnv Cum Red Prf 20p - 
117 6 

MuetrM Control Savfcra Grp PLOOM 10p - 
13841 pijy94) 

fed) Stock Exchrege of UKARep ol kLd 7%% 
MM DTO Sto 90B5 - C98% (13Jy94) 
bM Stock Exchange ol UKARep <* kiO%% 
Mtg Dab Sto 2016 - £106% (13Jy64) 

Writ Ufa PIG OM K0.10 - E2 p 197 7 % 
Jantoie Maitiaron Hdga Ld OM 3025 (Hong 
Kong Ragbtarf • SH5B% .7522 6028 
257164 257185 

Jretne Sbetaglc Mdge Ld Od 3095 IHong 
Kong Re^aM) - SH26S31 486 276668 
261468 .614161 .79033 .77204 242 
JarntetoPrtnOM SbeeLEdkbugh Ld 10% 
CumAfET -12D|8jy8* 

Johrere Group Cleenera PIG 72p (Net) Cnv 
Cun Red Prl tap -14* (l2Jy&9 
Johnaon Group Cleenera PIG 9% Cun Prf 
Pi - 9OfBjy0* 

JrdmaonAMthay PIG SW Cnv Cun Prf £1 - 
370 

Klngfkhte PIG ADR (KI) - 316% (12Jy8^ 
Mngday a Footer Group HG 395% Cun 
MCI -40 

Korea -Euope Amd Ld Sto*DR to Br) 3010 
|Cpn7)-*8Cl1Jy94) 

Knemar A2. Rbe A She WC1220 - NK26B2 
A 5 92 

LmSxahm Group PIG ADR (f:f) - 32.7 2% 

2-77 

LredSicuttlaaPLCa% Ite Mlg Dab Sto 9W 
2001 £102 

LASMO nC 10%% Oab Sto 2009 - £106% 
(13ty84) 

Labowe PUfnun Mnee U CM RQOI - 
FZ492 {12JyA4) 

Leeds 4 HoBreck Bifttoai Sociely 13%% 

Penn Int Bearing She £1000 - £126% 

Leeds Prenanre t BuMkig Society 13%% 

Perm bn Baaing £50000 - £132% 
Lewria(Joftr|PtelnaaNp AG 5% Cum Prf Sto 
£1 -53(12Jy94) 

l ea l a tfo h r?P a rti iad %i PLC7%%CumPrt 
Sto £1 - 75 (8jyB* 

Lraidan knemte i ond Group PLC ADR (Set) - 
$525 

Londcn Sacrettea PLC DM ip • 2% 

Lrertio PLC ADR (1:1) -32-1 P3J»9« 
leokara PLC 8% Cnv Cum Rod Prt £1 - 130 
4 

LovKWm) 4 Co PLC 8.75% Cun Cnv Rad M 
£1 -109123% %467 
Leweteobart K) a Co PIG SJ5% ?tef) Cnv 
CUn Red Prf ICp - 52 (8Jy94) 

MAI f%G &Sp*M) Cun Cnv Prf 5p - 88 % 
25% 2 100% 26 123 
MffC PLC 8% Urn Ui Sto 200CWB £96% 
McCarthy a Stone PLC 8.75% Cun Red M 
2003 £1 • 86% 78 

McCarthy a Stone PLC 7% Cnv Un Ln Sto 
89/04 - £71 (12Jy94) 

Mcteamay noportiea PIG a A‘ Od KO1.I0 - 

B0jO 7 p7 

UtMUhn a Sree Ld 10%% Cun ftf CT - 

120 2 (13JyS4) 

Manchester Bhfp Creel Go 1«f 3%% Perp 
EMbeteetf - £37 (13Jy»4) 

Mandarin GrtenM /ntemedond Id Ord 5005 
ftono Kong Reg) - SH1Q247644 
Maks 3 SpanotePLC ADR ftol) - 3389 
Merahafls PLC 10% Cum Prt £1 - 109 
(12*94) 

Medava PLC ADR (4:1) - $6.15 (1 Ijy94) 
MouMdolm) PLC 9% Cun nf n - 106 
(11JV64) 

MwcboM RsM Group PIG 8%% Cnv Ura 
In Sto BSKW - £84 (13J«94) 

Merouy kaanradanto Inv That Id Pig Rad 
Prl Ip (Reaarve Fred? - £482624 (11494) 
etarauy CMkhora Steribig That She of 
NteRHAmerican FUnrf) - 172v4 (12Jy94) 
Meraey Doc*a a Hobou Go 6%% Rad Dab 
Sto 84/87 - £96 

Meraey Docks a Harbau Cb 6%« Red Oeb 
Sto 86/38- £00 (1SJy94) 

MW Kant Witter PLC 5% Pop Oeb Sto - 
CS3% 4% (12JyS4) 

Mkf-Sussox Water Go TO* Red Oeb Sto 
2013/17 - £106 

Mefand Soto n£ 14% Subort Urn Ln Stk 
2002/07 - £123075 % % (11Jy94) 
MbatatBite PLC 10% CUn Prt C! • 109 
(13Jy94) 

MM Cartxxaflre Cam Sha at NPV - 3391* 
NEC Fbance PLC 10%% Deb Sto 2016 - 

E113<J(S2«4} 

NRC PLC 7%% Cnv Bds 2007HReg) - £06% 

% 

NMC Group PLC Wenenta to ejb Ira Sha - 
140 r>3 J&4) 

NMC Gioup PLC 7.7Ep (Nat) Cun Red Cnv 
W TCp - 727 173Jy94J 
NUtonar Power PLC ADR (10:1) - 368% 

National Westminster Berk PLC 12%% 
toteoM Ura in Sto 2004 -£120% 

Neroarth* PLC 677S% Cun Prt £1 - 73 
112JV94) 

N ewcawo BMtong Society 12%K Mm 
Irrarrart Bearing She Cl 000 - Cl 17% % 
ti3Jy94) 

Next RG 1Q%*B* Cum Prf SOp - 50 (12Jy94) 
North Eete Water PLC 526% Red Deb Slk 
2012 - £30 (13*84) 

North Houring Aeaoctofcvi Ld Zero Cpn Ln 
Sto2DB7 -367%* 

North of Ertyand BuWng SocWy 12%% 

Pren «t Bearing PM 000) - £119 
P a O Prepare Hokflnps Ld 8% Um Ln Sto 
97/99 - £83 (1Uy94) 

PbdBc Gre a Bectric Co She of Com Slk 85 

-SZWa^flMyW) 

P a rido nd Crore PLC OM 25p - 186 
Pul Hdgs PLC S%% 1st Mlg Dob Sto 2011 
- £10125 (12>%94 

P8d ttolfls PLC 225% (Nef) Cnv Cum Non- 
WgPrfEi -105 

Peel South East Ld 8%% Una Ln Sto 67/97 - 
£85»Jy3* 

PertraUer a Orireta Steon Kav Co 5% Cun 
PM 5» - £30* 

Precne Foods PIG ep(N«Q Cun Cnv Red Prf 
ICp -84 

PetroOna SA. Ord Sha NPV (Br ki Dreom 12 
a TO) - BF307O 65 10015 

Piarotaook aoup PLC 6.73% Cnv Prf 81/ 

2001 iap-K(f3ty84) 

Powerful PLC ADR (10:1) - 376.16 (1SJy94) 
PranSte Heatm Cbaup PLC OM ip - 1% 

P3jy94) 

Proas* HokSngs F6G 102% Cun Prt £1 - 
111% 3 (13Jy84) 

PreaVng PIG 62% Cun Red Prf £1 - 82 
CUcks aore PLC 10% Cum W£i - J15 

paw 

fLEAMflgs PLC 9% Cun Prf £1 -88 

RWU^3z% Un Ul Stk SOOUOB - £39 
(6Jy9t) 

HPH Id 9% Ura Ui Sto 890004 - C88 
(13JyB4) 

ftoM Sectanice PLC ADR ten - $726 
P3Jy*q 

ftmkCkgarraattcn PIG ADR tel) - $129 % 
Reddtt 3 Cobron PLC 5% Cun Prf £l - 51 
(iaj»84) 

Rented PLC BK Itt Dab Sto 91 /»- GB8 

fiu»*q 

fVputSk: GoWflteda Inc Sha at NPV - £1.7 
PJy94) 

RbM Corporation PLC 4225% Fnty 5%%] 

Cum 2nd Pit Cl . a (ISJyM 


Ratal Cor p ora tio n PlC 425% (pity 6%)^ 
Cum 3M Prf £1 -60* 

Rrety aoup plc e% um in sat asm - 

tea 

RueseKAMandte) PLC 5.75% Clan Cnv Red 
Prt - 90% (1lJy34) 

SCEnp Sha of Com Sto e» NPV - $«% 
(I2ty94) 

SattM a SaatEhi CO RG ADR (3:1? - 38^ 
OZJySR 

SKisbuyW PLC ADR (till - SZQS (SjySfl 
Seo motifc Mdga PLC 72Sp (NeO Cnr Cun 
RMMT20P - 60 fI3Jy84) 

Seantrartc KUga PLC 5JS% Cnv Cum Red 
Prf £1 ■ 86 (13Jy94) 

Sehoi PLC 5%% Cnv Cun Rad Prf 2006/1 1 
n - 77 

Seotush Hycbt^aecsic PLC Ord SQB - 3«8 % 
HI 1 %Z2%283%445%6 
Sccfflfh PCwer PLC OW 50p - 983 4 4 % 5 5 
%%ee.lB%%77B6%89 
Saaa PLC 7%% URs Ln Sto $2/97 - £98% 
P3Jy94) 

Senate Group 425% Oen Pb FW C7 

-£180 

Swam RNte Creswg PLG 6% bKte42tiiad 
Deb Sto 2012(5344%) -£114 
SlangM Fred (Ctymo? Ld Pipg She StLOi 
-310(12^7941 

ShMd Group PLC Od Sp - 9 
ShMd Gnp PLC 524% (Hal) Cm Cun Red 
Prf Ci-17* 

Shoprite ftnrece (UQ PLC 7975 p(NbQ Cum 
Rad Prf Sha 2009 - 73% 

Spot Grore PLC ADR (3:1) - 3127 (1 My94) 
Sttpjon BUkSog Society 1?%% item tot 
Bearing Shs £1000 - tl90 % \ 

Smflh New Cout PIG 12% Subord Ura Ln 
Sto 2001 - £104% 

Sffldh (WK) Group PLC 5%% Red Ura Ln 
Sto - CS2 (12i>94| 

SmmKDne Baecham PIG ADR (5:1) - 
33(91* 

amanane Beedam PlG/SmUMOna ADR 
(5:1) - S2S.02 

SnurflLMIaraon)Grcxp RX 6% Cum Prf 
lf£T- 6543f1f4y84) 

South SMfUdshlra Water PLC 8%% Red 
oafa sto ae^tna - £99% (Bjy94) 

Stag Futetura HUga PIC 11% Cun Prf £1 - 
103 (12Jy64) 

Standod Chartered PLC 12%% Subord Lfos 
Ln Sto 2002/07 - £116% (13Jy04) 

Stetong mduatnee PLC 1st Prip%% Cum)£1 

- 67 (BJy84) 

Sutt£fla£pa*rore PLC 8%% Red Cun Prf 
Cf-S0(8Jy8<) 

SvtoeUohrti s Som Ld 63% Cun prt £i - 
75%%<Bty94) 

Symonds En*rvwring PLC OM Sp - 30% 

f»aw , 

T 6 N nc 1 1%% Mlg Deb Sto 95/2000 - 
£104% 

TS8 Grore PLC T0%% Subord Ln Sto 2006 

- £1094 10V f13ty94) 

IT tetHp PLC 10875% Cm Cun Red Prf 
Sha £1 1987 - Z74 <13Jy94) 

Tala & Lyle PLC ADR (4.1) - £113283 
(114y94) 

Tenraeeea Gaa Ptpafera Co 10% SDg« Cm 
Um Ln Stk 01/85 - £120 (BJy84) 

Tesco PLC ADR (1:1) - $395 98 
ThAnd baarranonai Fred Ld Ptg Sha $091 
(CFTa to Btl - $28250 28400 26600 
fifty**! 

THORN BO PLC ADR flrl) - 5162 
Thwaftes(DBrM} PIG 5% let Cun Prt £10 - 
475 

Tcxonfo Gray a Bruce Rabmy Co 4% lot 
Mtg Bda (2S83) (Cpn 221) - £46 (12Jy9R 
TraMgar Mouse PLC B%% Uni Ui Sto 2000/ 
05 - £32 (BJy«) 

YrteUgar House PLC 10%% Um Ln Sto 
2001/06 - £95 8 

Tr a naedaml c Hobflnga PLC A Cnv W SOp - 
£39D3Jy94) 

'nonstentic Hckflngs PLC B 6% Cm Prf £1 
-846 

Transport Oavetopment Grore PLC 9%% 

Ura Ln Stk 860000 - £S8% fllJyW) 


Transport Development Group PLC 12%% 
Una Ui Sto 2006 - £116% nity$4) 

llrigate PLC ATO (ltl) - 38 (i2Jyft4) 

Ungota PLC 5% Um Ln Sto 81/86 - £02% 
fl3Jy94) 

Uragtee PLC 6%% Um Ui Slk 81/96 - £55 
(12Jy94) 

IMor PIG ADR (4rt) - 3105245 105.71 
(JMre brtamadonal Co PLC SM Cun tyf Stk 
£1-47 

union li d B mte la nrf Cb PIG 7% Cum Prt Slk 
£1 -47 

Unisys Corp Corn Sto 9501 - 59% fl2Jy84) 
(Mean Ptoramom AMm 19 £M RD20 • 
E0.18 (8dy94) 

UBBy CaEta PLC Warrants to aublteOd- 
16(11Jy94) 

Values Income Trust PLC Warreta 8&S4 to 
arelteOM-44tUJyU) 

Van Diemerr* (red Ca ‘A* 2Sp - 70 
Vodafone Group PLC A£»(lfc1) - 583 % % 
4%%% 

Wagon bxjretrw Hdga PLC 726p (Ned Cm 
P»Bprfiap-144 0lty34) 

WrfkerfThamas) «G Od sp - 27%* 
Wescome PLC ADR (W) - *9%* 

MMs Fogo 8 Cenvaoy Shs of Com Stic $S - 
3156% (ItJyefl 

WWnUay PLC eHNaQCm CUn Rad M 1888 
£1 - 48 % piJvfm 

Wrtoiraaa PtC 412% 7* CUn Prf Sto £i • 

50 (13Jy84) 

WMbraad PLC 6% 3M Cun Prf 9K £t - os 
(84yM 

Whkbn aa PLC 7%% Um Ln Stk 95/89 - C94 
WNBxoad PLC 10%% Um Ui Sto 2000/05 - 
£iOS%(8Jy94) 

WNteodk FLC 5.1% Cun Pit Cl - 55 
WBa Conoon Grore PLC ADR CStl) - £10% 
W»on(Corviaa)?Hklga PLC 10%% Cun 2nd 
Prt £1 - 12S (i2Jy«d 

Wyevtee Qoden C«*«e PIG 82% (N«6 Cm 
Cun Red Prt Cl - 141 (12Jy84) 

York Waterwork s PLC OM lOp - 287 
Yorttera-Tyne Toss TV Hklgs PIG Wla lo 
aub tor on - 155 62 

YUa CtetD a Co PIG li%% Cum Red Prt 
1896/2003 fi • iasfi2Jys* 

Zambia ConaoMated Copper Mfcws UTB* 
CMK70-210 

tnvestnrent Trusts 

fibtruat Nsu Dawn bar Treat PLC C Sha SOp 
-289 

American Tiuat PLC 3%% tprty 5W) Cum 
Prf Sto - £49 (13Jy64) 

Bone GWord Jepre TrcotPLC Wte to Sub 
Qro Shs - 187 

BaBto Oflorci Shbr Mppre RG Wtenmis to 
wtar Old- 126 7 8 
Bertog Triune b w alnie nt Rust PLC8%% 

Deb Sto 2012 - C90 (BJyOO 
atBsh Assets Treat PLC EquOes bkfax ULS 
2005 top - 150% 

Sntfafi Entpbe Sac S Ganeraf Treat to%% 

Deb Stk 2011 -E110% 1 f12Jy94) 
amah brveah i ire t Trust PLC 11.125% 

Secure Deb Stk 2012 - £120 
Broadgnte Inveabnent Rust PLC Wts to Sub 
lor Ord - 48 

CapOri Gearing Trust PLC Ord 2Sp - 450 
fidtety Europe* Vetoes PIC Eqtely Linked 
Um Ln Sto 2001 - 138 
Ftabuy Sno l te Co’s Treat PIG Zoo Qtv Prt 
2Sp - 181% 

Faratyi a Col Invest Treat PLC 7%% Deb 
Sto 88/94 -£98 (11 Jy94) 

Garnmra Bnnsh me a Grth Tot PLCZero Divi- 
dend Prt 1 0p - 104% 

Gertmore Shore Eqtety Treat PLC Gearad 
(M toe lOp - 1024 

HTR Japsnaso SmaOte Crfa Treat PLCOM 
Z5p - 109 % % 10 % 1 
bmwlora CapfiaJ ThW PLC 7%% Dab Stic 
82/97 - £37% 

Laara Select tovesanant Treat Ld Rg Red 
Prf (Lip U.K. Liquid Aasata Fred - CIO p 
898(8*94) 


LAAd Selact kivMMwnt Treat U) PlO Red 
Prf Cfp Japan todra Fred-6fl6.fi W08 
(MV*4) 

Utonf Selacf knwrenoK Treat Ld PtB Rad 
Prf Q.1p feirape todex Fund - C16J6 1^8 

caJyS4J 

London a St UHmnoe Inwatmani PLCCM 
Bp- 141% a% (134)84) 

London & SMtotycte That PLC 5% Cum Prf 
Sto - C49 (l3Jy94) 

MoQ^OtedslUanAmteCa'BTA PLCWb M 
aiAfteOrd-43(13Jy94) 

Pratoaa French toroto nte Treat PLCSem 'A‘ 

Warranto to eub tor Ord - 31 

Ptotia nendi IreMBiwnr Rust PLCSora 
-8* Woranta to «» lor Qd - 22% 3 
Schroder feme FM PLC OM *OOT fir) - 
$14%D2Jyfl* 

ScotMh Eauam tow Trust PIG 12%% Oeb 
Sto 2012 - £127 «uy84) 

SrettiBh Mortgaga 6 That MG 6-12% 
aapped W Deb Sto 2026 - £128% 8% 

Sacutitea Treat ot Scotoaid PLC 4i 2 % Cun 
Prf Stk - £46 D3Jy94) 

Sphere h wa nw it Tnito PLC Rartaod War- 
ranto to ere for Od - 8% I)*##? 

TR Oty of London Tnot PLC 11%% Deb Sto 
2014 - £121 

Updnwn tovemiiera Co PLC Ord 25p - 565 
(I3iy84) 

Wkyim Property bweabnent list PLCWta to 
Sub for Ore-39 

Wtian irnnsanant Co PLC fl%« 0* Sto 
2016- £96% It 

USM Appencfix 

BLP Cram PUB ore sop -137 
Croearoada Of Gtoup PLC AOfi 0^8 - $6% 

plygg 

Dakota Group PlC £W b£62S - tttt 18 
FBD Hektinge PLC OM b£O50 - l£1S SX7 
(11Jy»fl 

Qbba Mew PLC Ord 25p - 410 
Greet Southern (Mia PLC 6.7Sp Clan Cnv 
Red ftf 5p - 233 (13Jy94) 
hfcSand 8 SoodMi Raooucee PLC Od IQp - 
3 

ToM Systems PIG Old Ep • 22 (124y64) 
Urted Enerev PLC WB to sub tar CM - 7% 

Rule 535(2) 

AttaaouaCe PLC *B* Ord Cl - £27 
M toroid Loon rentes Ground Ld Dab 9V 
95 £2000 • £7000 (13Jy94) 

Ann Svaet Browuy Co Ld CM £l -C32* 
3V* 

Am Sheet Brewery Co Ld Cm Red 2nd Prt 
£1 -£&55(11J}«1) 

Mean* Foottafl Cub PIG Od £1 - £*50 
Asce* Hdga KG Vto Beta Cw Cun Red Prf 

lOp-caoa 

Aorocteteri BridahtodiaAlea PLC Ora £i - 
GL35(i2Jy94) 

Bottaya feweshnent FtetOffU) Qabal 
Rasourcae Fund - 0X5968 (11Jy94) 

Steon baflaMd Group PLC OM ip - C0.11 
Branoota Hokftogs PLC Ord 5p - £044 045 
Brockomk Group PLC OM top - C2 ftlJyW 
C a rartmnPUCOretp-EO.il 
Channel Islands Coma (TV) Ld OM Sp - £046 
«UV«) 

CharincoASharttharo Chutoco Dtatr - £195 
cajywi 

DAftManagemant PIG On) IQp - £295 
(iwy84) 

Dmm Hdga PLC CM lOp - £49 497 
Da Qrechy (Abmhenfl Co Ud OM SOp - £1% 
Everton FOotoafl ChA Co Ld OM Sto £1 - 
£2400 (11Jy94) 

Exrfwm PIG Old SOp - E2J D2Jy94) 

Focal Broadcast Corporation PLC OM Sp - 
£045 

Fo tn a ciei fi —Mo W I Qnup PLC Cad ip • 
£045 

GredarHoMbiga PLC CM ip - £0065 
Gtobona (Start o y)l ? dg a PlG Ore 25p - 
£0295 


Graanater Notate PIG OnMOp - 0126 
(iZtyflR 

Gmmcay Gm Light Co Id <M 10p - £086 

0.72 (& are ajm 

Guamsey Ptosa Co Ld ore 10p • £19 Z 

(SJy84) 

cuton Own Id Ore lOp - £19 (1 Uy84) 

I E S GbtoA PLG ora lOp - £6% 

J ^l^s* yQ>MfccuT,f,,8prt5:1> 

Just Group PIG CM ip - £003375 fi2JyM 
WTlr , Ti11 nii~lhfl*iywMan t rraaim 
Fund -$09761(1 1 Jy9* 

HHnwi BanaonftoO Fund Mai M Enuty 
Owffi bio - £291* 

Labyrinth Oroup PLC CM Wp - 13X64 

LaneadWa Entopnma PIG Ora 5p - £LSi 

(I&ftW) 

Lawranee PIG CM IQp • £1% (I2jy84) 

Lawrta Group PLG CM £1 - £23% 34 
Le Rtahrfa Seam Id CM £1 - £295 n 1 jyM . 
Labinttns Inns PIG Ord SOp >0X1 
tifiJyW 

Martoe a Mercms* Secredm plc ore 
WftS0-S2.1B2.l85J 
MQBft bitunatiUtol Grew PLC OM ip - ' 
E092(l2ty94) 

Mdocon La ore icp - ea.145 nzty94 

NUtante Paridra Corp Ld ore 10p-£S%«, 
595 

Newbuy Rapecourae RG Old C100 - CTlDO 
(13ty«) 

North West Eretondkxi PIG Old ip • 2% 

ww 

Pen Andeoi Raaouem ^G Oidlp- DL05 
|HJy6* 

ParpetudPwmy) Offshore Emerging Ctfa - 
C4.348242/I3jy04} 

Rarpaauai(Jaraa)i) Oftaharo Japan GrcmOiFd 

- £1960007 (1?Jy94) 

PapetuaKJeraeyt Ofhtxn UK Orowth - 

329129 (13Jyo4) 

R angara Fombdl Oub PIG OM IQp - Cnjt s 
095 

Rangers FooibaA Club PLC B Dab Sto £1300 
-£600 1150(3Jy94) 

Rangara Footttol CU> PLC C Deb Sto Cisoo 

- £1350 (13Jy94) 

Sedan Hotel Ld OM £i - £39 (tUyO% 

Select todustrfea RG Nan CM 7%p Prfl 

- £0935 (12Jy94) 

Severo today RtfwayfKMlgrePlG Ord £1 - 
£0%(BJy8«) 

Shepherd Naans Id *A* Onf Cl - CB4 6% 
Southern N ra ffip a fi ar n PIG OM £1 - £4.13 
Sutton Harbou Hklgs Ld Ora 25p - ttii 
(iijy®^ 

ThwnderetonMOa Co RG CM ZSp ■ C295 
02dy94| 

Ttiaghur PLC OM Sp - £096 (8Jy84) 

TYateor Nateroik PIG OM £1 -£13% 14 14% 
14% 14% 13 

UAPT-Infoanic PLC OM 2Sp - £395 
Utemed PLC Ord W09S - £198* 

Veterinary Dreg Co PLC CM £1 - £37 3J77 
Wartnry Asset Management Jersey Mercury 
Inti OoU & General Fd - Si .ana* 
Wtofcfertun Seourittae PLC Ort Sp - £0.1 
ftl 016 

Weatabfc Ld *A" NcroV OM 2Sp - £16* 

RULE 535 (4) (n) 

Bargains maricod fat saairfttea 
where principal market h outsfcfe 
the UK and Rapubfc at Ireland. 
Quotation has not been granted In 
London and dealnsi are not 
recorded in (he Offldat LfaL 

Otemppon Screen Man ¥6969549(8.7) 
Letynon Mdgs AH 9*02.7) 

Meteyden Plant 489(13.7) 

C* Search 41916.7) 

Porimai IMrg 410.737(13.7) 

Stair Corraiwtoaftom 3X36d71f1i7) 

* temri» i4/lteate* Cirt aA Cerate 


w 




London, 14 &15 September 1994 

ISSUES INCLUDE: 

• The Outlook for Nuclear in North America and Western Europe 

• Privatisation and the Nuclear Industry - Problems & Prospects 

• The Nuclear Legacy in Eastern Europe and the CIS 

• Growth Markets; The Asia-Pacific Region 

• Crucial Issues in Managing the Fuel Cycle 

SPEAKERS INCLUDE: 

• Mr James Harm CBE 
Chairman 

• Mr Remy Carle 


hr.. 




Scottish Nuclear Limited 


Deputy General Manager 

Professor Jurgis Vilemas 

Director 

Dr Yib-Yun Hsu 
Chairman 

Mr John R S Guinness CB 
Chairman 

The Honorable John Reid 

President 


Electricity de France 
Lithuanian Energy Institute 
Atomic Energy Council, Taiwan 
British Nuclear Fuels plc 
Canadian Nuclear Association 


Arranged in association with the FT Newsletter - ‘Energy Economist” 

For information about marketing opportunities please contact Lynette Northey on 071 814 9770 
10% discount and quality gift available for paid bookings received by 20 July 1994. 


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MARKET REPORT 


Strong gains as the last equity account closes 


FT-SE-A AH-Share Index 


1.600 


By Terry Bytand, 

UK Stock Market Editor 

The last equity trading account in 
London equities closed with the 
market in good form yesterday as 
share prices rose sharply for the 
third successive trading session 
Trading volume showed a Anther 
increase, boosted by a large trading 
programme from a US investment 
bank. 

The FT-SE I ndex dosed 24.4 up at 
3,074.8, having achieved most of its 
gain within the first hour of lie 
market's opening. Traders were 
pleased to see the index convinc- 
ingly extend its gain above the 3,050 
hurdle. Profit-taking ahead of the 
close of the account, a London phe- 
nomena now consigned to the his- 
tory books, proved no check to a 
market which has risen by uoj) 


TRADING VOLUME 


■ Major Stocks Yesterday 

VoL Onekrj Dxfm 

Mop ma ane 

A6QA Group! 2*00 

Mjbay Nottonatf 4*00 

Mbot FotMr 5,700 

Med-lyomt 1600 


points on the Footsie over the past 
three trading sessions. The tone of 
the market appeared very ff/rnffripnt 
at the close of business and was 
supported by favourable comments 
In weekly reports to clients by sev- 
eral leading securities houses. 

The Footsie has risen by about 4.7 
per cent over the two-week account, 
with the greater part of the rise 
taking place this week as concern 
over the dollar has subsided, bring- 
ing a rally in bond markets 
returning investor attention to the 
economic recovery and low infla- 
tion in the UK. The FT-SE Mid 250 
Index gained 2L6 to 355L3 yester- 
day, bringing the advance over the 
account to nearly 4 per cent 

The financial sectors, with bal- 
ance sheets filled with assets in the 
form of market securities, stood out 
strongly in the market advance. 


Aeeowt Pniflnj Oates 

'ItoR Daa8n0* 

Jrt « 

Jrt 18“ 

<1® 

OpSwi riartaradom. 
Jrt M 

Jul £8 

fl/ta 

ten DaaanoM 

Jrt is 

>t® 

art 

Account ten 

Jrt 28 


iVa 

"Raw area daningi n mr Hat ptoea tea (mo dayo 
Mrtor. -ram 10+My nainM mkn Marti 


Dollar-earning stocks remained less 
active than the rest of the market, 
with oil shares falling to keep pace 
as some profits were taken after the 
strong run earlier this week. 

Traders identified further share 
buying from overseas Investment 
institutions. Hie lead was report- 
edly taken by Goldman Sachs, the 
US investment bank, with a pro- 
grammed buying operation across 
both Footsie and non-Footsie 


stocks. Consumer stocks were again 
enlivened by the implications of the 
Tesco offer for William Low. which 
Is now widely regarded as the open- 
ing shot in a potentially far-ranging 
battle. 

Building and contracting stocks, 
which have been held back by the 
fears over prospects for a rise In 
base rates, continued to recover 
ground yesterday. Companies with 
German involvement were particu- 
larly firm on the back of persistent 
support from European institutions. 

Equity volume, as reported 
through the Seaq electronic net- 
work, jumped to 856.4m shares, the 
highest total for several months and 
a 17 per cent increase on the previ- 
ous session. 

- A recovery in trading volumes, 
which had slipped away during the 
period of concern over bond mar- 


kets, was bome out by Thursday’s 
total of£L51bn in retail, or genuine 
investor business. This was the 
sixth successive day of £lbn phis 
business, contrasting sharply with 
totals below this benchmark num- 
ber at the hp ghming of last week. 

The gilt-edged market traded 
firmly for most of the day but 
turned less certain following the 
announcement that the next auc- 
tion of government bonds, sched- 
uled for Wednesday July 27, will be 
of conventional stock in the 
2007-2011 maturity range. Some 
bond trading bouses were believed 
to have expected a variable rate 
issue and bad to reshuffle their 
market positions following the auc- 
tion announcement. However, trad- 
ers agreed that, "It was Friday 
afternoon, and not the best Hme to 
measure the market's response." 



Equity Shares Traded 

Turiworby volume (mUtanJ. EKChdng: 
MnHtnriwtbialnesswdawreeastumovBr 
1,000 


Source: FT Oi*>Ma 


1884 



■ Key Indicators 

Indices and ratios 

FT-SE Mid 250 3551.3 +21.6 

FT-SE-A 350 1545.8 +11.6 

FT-SE-A All-Share 1532.50 +11.25 

FT-SE-A Ait-Share yield 3JB7 (SLB8) 

FT Ordinary index 2400.6 +7.2 

FT-SE-A Non Fkis p/e 19.33 (19.26) 

FT-SE 1 00 Fut Sep 3091 .0 +21-0 

10 yr Gflt yield 8.29 (8.21) 

Long gllt/equrty ytd ratio: 2.18 (2.10 ) 


FT-SE 10O Index 

Closing index for Jul 15...... 3074.8 

Change Over week +112.4 

Jul 14 - -3050.4 

Jut 13 3005.3 

Jul 12 -2963.9 

Jul 11 ............ ...2983.8 

High’ 3078.4 

LOW .2957.4 

•ntra-dsy niflft and low tor wm* 


EQUITY FUTURES AND OPTIONS TRADING 


571* 

411 

40 

574 


Vet 

000m 


*0 


*% 


lam) 

Luos 

MBPCt 

MF1 

Mmwb 

Maria t. Gpanccrt 


Cta+ng cqrs 
prtca cmnpa 


Awoc. Ort. Rena 

BMt 

BKTtadkt 

BET 

MX 

get 

BPt 

BPS bids. 

BTt 

BT(PffWH 

amt 

Bonk Bcodandt 

55* 

BhMCfctWt 
Booker 
Soots! 


. BriL AMnpacot 

Bdfah Mnmyat 4JS00 

C . tkMoh Goat 3*00 

‘ OWi Lend 4,400 

*■; atom Swat! 14.000 

’2 r Bund 306 

Bumati CaMrrtf 778 

Barton 4*00 

CaUaSWwt 8700 

Cadbury Scftmppsat 3.400 
CdorOrop 
Cndonf 
Ceiflon Comma, t 
ConteWyebt 
Comm, unurt 
Coahaon 
Courtartdst 
ndpary . 

OaLaRuat 
Dbont 


2*00 203 


1.100 

1,000 

4JSM 

5.100 
1400 
1.000 
7*00 

4.700 

SJU 

5.700 
IOjOOO 

3*00 

5300 

3jm 

2300 

1.100 
MOO 
3,100 


502 

275 

855 

438 

107 
405 
723 
400 
330 
300 
273 
878 
181 
554 
946 
318 
419 
648 
447 
403 
435 
284 
425 
167 

108 
843 

SB 

437 


♦1 

+18 


♦7 

-5 

-S 

+13 

-2 

*rh 


i(Wmj 

NFCt 

Nartnat Bankt 
■ wfumiai i’orut 
Mem 

North WMWaart 


Poaroart 

poor 

PtUngnn 


16 

+18 

-Oh 

+1 

+11 

+a 

42 

+3 

+4 

401* 

+13 

-2 


444 43 h 


268 

331 

084 

218 

541 

xa 

810 

433 



1400 
1400 
0*00 
1300 
2.100 
1.700 
984 
1.600 900 

U00 IBOb 
2*00 814 

1.300 605 

740 350 

1.000 427 

1J3Q0 274 

101 100 
700 148 

1.500 
1200 221 
063 K. 
11000 283*8 
1300 502 

877 3B2*z 
1.800 S3* 

4300 424 

1100 874 

1.100 170 

1*00 820 
1400 438 

1700 727 

141 380 

10.000 25a 

1000 172 

1*00 278 


+12 

48 


+18 

**2 


>13 

+10 


-h 

+i 

48 

-9 

45 

*14 

+11 

+*«a 

48 

42 

-h 

431 

-14 

-a 

+i 


RTZt 
Racal 
HankOrat 
FtecMua CUfennf 
Round! 

Road M-t 
RanMdt 
Rsuttnf 
RoOe Roycat 
Ryl Bk BcoHondt 
Roytf knaancfff 
Sameburyt 

3dradm 

SOaetdilNawt 
Soot Hyt*o-aact 
SoaHWi Pmwrf 
Beamt 


SavemIVanrt 
Shan Transport 
Btabaf 
Skua Ena 
Sn«i(HMi)A 
SnBh 0 Nophaarf 
anW — W ai t 

8nM Baacfaon lfta.t 
SnoBha hdt 
Bauhent Bactt 
SouSt VWw Baca. 
South Wad Wacar 
SooA MHL Beet 
Souttan Wanr 
Standod Chand-f 


1,200 

1600 

1.600 

1400 

88 

8100 

307 

888 

1000 
1800 
1X0 
802 
437 
MOO 
341 
2400 
1.100 
1000 
1100 
1100 
1,100 
1500 
1.300 
1700 
1100 
4.800 
074 
110Q 
1000 
1700 
1,700 
1800 
1400 
47 
1 400 
800 
1300 
1700 
804 
604 
1000 
1100 
1,700 
824 
080 
1.500 
1100 
031 
888 
736 
173 


131 

100 

478 

156 

601 

425^9 

814 

122 

1S4 

470 

438 

252 

507 

074 


673 

181 


042 

240 

402 

506 

590 

700 

237 

477 

101>2 

401 

347 

387 


-1*2 

-6 

+14 

a 

4« 

~10 

42 

*h 

+18 

-4 

*3h 


-1 0 
•13 
-0 
40 
*0 
+0k 
+10 
40 

-ah 


•it 

42 

42 

-a 

■ah 


534 +13k 

367 42 

306 


A squeeze in stock index 
futures and the expiry of the 
July series index options 
turned out to be the main 
features in the derivatives. 
writes Joel Kibazo. 

At the close, the reading on 
the September contract on 
the FT-SE was 3,091, up 21 
on its previous close and 13 


points above its fair value 
premium to cash of 5 points. 
Volume was 17,865. 

In traded options, the 
mid-morning expiry of the July 
index options passed oft 
without much difficulty. Total 
volume was 48,139 contracts 
with 22,524 lots dealt in the 
FT-SE 100 option. 


■ FT-SE 100 INDEX HftUBES (UFFE) £25 par M Index poM 


«gh 

3100.0 


Opan Sett pries Chpngo 
Sep 3066* 3081.0 +21 JO 

Dec 3101.0 +21.0 

■ FT-SE BMP gSO INDEX FUTURES (UFFQ CIO per tut todsx point 


Low 

30810 


Sep 


3650K) 


+15.0 


Eat. vW Open bit 
19520 50104 

0 1803 

4435 


Sun ASKioet 
TIN 

T1 Qroupt 

TSet 

Tarmac 

Tda+tyta 
Taylor WModmw 
Taacof 

Harass WMssf 
Than act 
TnraMrwf 
TMotawHoun 


IMMrt 


4300 

tOOl) 

1*00 

1.100 

1.100 

MOO 

4.100 

480 

1300 

1800 

1*00 

1400 

1800 

4,300 

1300 

1300 


110>Z 

IS 

328 

603 

710 

807 

247 

478 

189*1 

400 

380 

441 

an*i 

847 

514 

901 

405 

288 

214 

310 

237 

990 

202 

101 

410 

144 

233 

488 

1066 

224 

82 

383 

1010 


♦ 1*2 

+4 

-0 

+3 

40 

♦7 


+1 

42 

-0* 

-8 

44 

-12 

40 

*11 

44 

40 

-1 

-6 

-0 

48*2 

-1 

40 

+>1 

+0 

-0 

is 

+1 

+13 


■ FT-8E WO gflO INDBt FUTURES fOMUQ glO per M Index point 
Sep 3551.0 

AM open Wane ipaaa are tor pmvtoua day. t Boat vcAana shown. 


■ FT-SE 100 INDEX OPTION gjrq f3075) E10 perfta Index point 

2900 2080 3000 3050 3100 3100 3200 32S0 

CPCPCPCPCPCPCPCP 
to tre to IS 25 25 75 125 175 

Aug 19B 13 153*2 21 11B 33 82 0*2 SS>2 72Iz 34 102*2 W*2 137*2 SB 178 

Sep 218*2 27*2 177 3712 140 51*2 109*2 B9 91 91*2 60 120*2 41 152*2 29 190*2 

OGt 232 41 190 54 f£0*2 68 131 89 103 111 82 140 83 170*2 4B 2»*2 

Oecf »0 63 193 96*2 133*2 138 93*2195*2 

cm 11.530 ha 11JOO 

■ BUBO STYLE FT-SE 100 MBEX OPTION (UFFEj CIO per M Indan point 

2B7S 2028 2975 BOSS 3178 3229 3275 3325 

M 1B9*a 149*2 96*2 48^2 *2 50*2 100*2 150*2 

ft® 218*2 10 174*215*2 133 25*2 98 38^ BB*2 59*2 44*2 86*2 29*2119*2 14 156*2 
Sep w 32*2 126 59*2 79 103*2 33*2 166 

OK 243*2 71*2 179 103*2 122*2 148 81 202 

Mart 281 95*2 219 130 185*2173*2 121*2 22B 

cm 5JW Mi 5.1V * UKWjmo w W. PnaW dan » beMd an iw prim, 
t tee mad s ' 


FT-SE-A INDICES - LEADERS & LAGGARDS 


UOD 

. «? 

+1 

.tinted naertort 

— A+OO 

am 

.-6 

87B 

3T3»J 

-fh ' 

Lnd. NnnpteBm- - 

-' 1^00 

350 

-e 

i jna 


♦0 

UodMan+t 

1.700 

945 

14 

1/300 

+48 

-4 

wmuo rsayt 

1.500 

603 

-4 

213 

S7+ 

♦1 

Wafcomrt' 

1 /K» 

610 

+1 

0200 

334 

113 

WaWiWrtor 

100 

874 

•« 

13W 

520 

-2 

WsaancWraor 

401. 

681 

+1 

3. +00 

178 

♦3 

tM/ttnadf 

1*00 

6+1 

+17 

1 ,11» 

KT6 

13 

WBBamtVaa.1 

4JMQ 

302 

1* 

1 « 

739 

m 

WmCDncan 

832 

135 

+1 

ME 

4+1 

15 


1/W3 

106 

16*2 

ihOO 

336 

+1 

Wofcitoyt 

■ i«o 

042 

♦IB 

3*00 

557 

+21 

YortaNni EtaoL 

119 

661 

-10 

2.100 

137 (j 

-3 

YortaHm WMar 

015 

482 

+17 

1^00 

356 

-8 

Zmcat 

894 

736 

14 


Percentage changes tdneo Oecambsr 31 1993 baadd on Friday July 15 1994 

IbiPtori. tort 
W 


Eflp n aar 1 WiWrtM- +1058 

01 Brplmftn A Prod +1089 

MttateMrAMg. *022 

Engtaderiog I +404 


«. Wtaacdad — 

WmlBMlI. 
Oicw.. 


UtanlHoMi. 
Edndha hds_ 


Cm 

nndU takanui 


FT-SE SnsSCap . 


FT-SE smecip . 


iMd an n*g nine hr a MscOm * aH« eadM M <m«i M EEM w0m pMj IM 4JQp*i rradia 
el ih amn or nos m io«Wd tat fkdMn ai FT-SE MB b ' 


FT-SE Hdl 260 K IT . 


. +351 
+147 
. +140 
. +178 
.+225 

- -1.19 
. -1JB 
. -MB 
. -174 
. -3.12 
. -300 
. -170 

- -S91 



Becanr*: 0 Bee Eqprat -0.11 

FT-S&A33B . 423 

TriWBI — ■ ■ 457 

kaaabmi Ttim — 4B1 
spm,»« 0 cun -us 

Hmnn -084 

FT-SE 100 -1100 

FoodUanAckm -1028 

BUUre 6 CBPrinW _ -NL30 


-1155 
-1146 
-1157 
-1184 
-11*4 
-1119 
-M.1B 
-1456 
-1121 

TriecooRHfcKMI -1S3B 

GnUebMon -1050 

Rwbk -1740 

Wrier -1053 

Manftant Barter -1087 

Baeka -1957 

knunnea -HL58 

1UWOSO -a* 2 



Hamb ert Banda 
iraneaH 


F T - SE Actuaries' Share Indices 


Of* 

M 15 digM M 14 Jrt 13 to 12 


Xm 

m 


Dk Earn, ffi »■! 
yU% |W at 9 


TMri 


W 


bar 



Fl-SE mo 
FT-SE Hi 259 
FT-SE Hd 250 ax bw TMt) 
FT-SE-A 350 
FT-SE ! 

FT-SE! 

FT-GE4 MrSHME 


3074* +03 
3551* +08 
3553* +<U 
15450 +00 
1797*5 +05 
1787*1 +04 
153150 +07 


30504 

35217 

3534.1 

1534* 

1788*1 

1759*4 

1521*5 


30053 

34837 

34004 

1513.1 

178009 

1754*3 

1501.43 


29039 

3465* 

3471.1 

1404* 

1777*1 

175258 

1483*8 


28339 

371 7 J 
3231.7 
1418* 
153345 
1833*3 
1405*2 


4*8 605 
3*7 5*2 
305 0*0 
192 8*2 
114 4*3 
131 4*8 
3*7 0*6 


17*6 0096 
20LB8 7101 
1023 7132 
17*4 33*1 
30*8 ? 0M 
27*0 3000 
18.48 32*2 


HSUS 33X13 
131173 4152* 
131034 4H07 

118377 17713 

138370 2804*8 
1884*0 288072 
1189*0 1704.11 


FT-SE Actuaries AH-Share 

Day* Year Mr. Earn. 

JU 15 denftAI 14 Jrt 13 Jd 12 ago yM% 


PIE 


Xdaq. 

IM 


Todd 


Mgh 


212 MM 24® 
3S 33034 27® 
1V1 33814 27® 
2 fi 1451* 24® 
412 177051 in 
412 175Z58 12/7 
212 1445*5 24® 


LOW 


38283 2121B4 

4182* 3094 

4M0L7 wnm 
17703 212194 

412®4 
41394 
178411 2094 




sns 2 mm 

W79A 21/U88 
078* 21/1/88 
6045 1471/80 
738179 31/12192 
130179 31/12S2 
81*2 13712/74 


Lew 


10 WBML EXTMCIRNftt) 
12 EiSracOK kmsirinm 
15 04 Wama+p ) 

10 n EeDonOM K ProdfM) 


2062*7 +01 205071 2014*5 2571*8 2155.40 3.42 442 28.45 47.41 105410 273044 

379064 +-1J0 3701*0 3072*1 3090*0 3009*0 3*0 530 23*3 5424 1038*0 4107*5 

200120 2004*0 2573*0 2927*8 2001.50 354 4*4 27*9 50*4 1056.43 2081*9 

1940*0 -0* 1885*7 1940*5 1903*0 1778*0 2*8 1-25 80*01 2034 1110.18 


20 681 HMUFACTOn£RS£64) 1897*6 +12 1993*2 1909*0 1950.13 1770*0 3*0 4*5 2142 4093 

zi amte & Qaramtfoncm 11722 a -+ 1 * 1153*0 usa .45 hsuk 1025*0 3*9 4*4 27*0 2004 

22 BUtte IMs A Wntapi) 2DO072 +1* 198058 1960*0 1991*0 1825*0 3*8 3*8 31*0 45*9 

23 CharteaJs(22) 2406*3 +0* 2365.02 2371.70 234223 2099*0 3*5 4*1 32*0 5023 

24 Ohemfled butattWIB) 1997*8 -07 2011*7 190421 1985*5 107470 4*0 4*8 28*1 8000 

25 EKctOflC 8 Bart BUppQ 191417 -04 192270 1885.41 188017 1902*0 3*2 0*7 1024 1143 

28 Engtae*t«(7a| 1878.77 +0.1 1873*9 1041*1 1HB.S0 3*3 408 28.49 3000 

27 Engtraering, WifeMda 2350*9 -06 2380.65 234054 2346.70 1820*0 4.45 250 61*7 42*3 

28 PrblHng. P*» & PtfoC® 2844*4 +0* 2827*0 2780*6 277100 2238*0 2L94 010 2111 40*1 

29 TodfcS 0 AppmrtpO 1072*9 -+1.1 1854*1 164132 1637*0 1779*0 3*7 6*6 20*3 38*5 


1007*3 
910*0 1999.10 
03059 239352 
1068*8 

101017 2231*7 
917.11 2263*8 
106638 2DI1.T7 
112011 25ML7I 
1111*3 30«5*1 
9(0*7 


30 CORSOHBt 60006(97) 2647*0 

31 Braweriaa(17) 2222*4 

32 Spurs. Wlnw & CUaradq ZmA2 

33 Food Manufaomeraft) 220082 

34 HnuttMM OnmttS) 2440*7 

38 Hntt) Cerepl) 159087 

37 PMrmaeeuBQrii(12) 292010 

38 TrtocrtKT) 3653.45 


+0.7 2829.17 
+1.1 2198*2 
+06 2760*1 
+09 218778 
-05 2451*9 
-01 1592.16 
+0* 281022 
+1* 


2589.47 257097 2S9OS0 
2141.42 2123.47 1993*0 
272113 2090*4 270450 
2189*8 215O40 2168*0 
243830 241204 217000 
158078 1681 57 1805*0 
2787*9 2782.16 27B4.40 
356038 3439*3 379040 


4*7 7*3 
455 7Jfl 
3*9 ass 
4*4 8*3 
059 7*3 
3*0 018 
4*1 7.73 
077 9*2 


1034 88*8 
1073 48*8 
16*9 8045 
14.48 81*4 
1083 52.15 
64*7 3114 
14*1 5001 
1124127*3 


00139 3048*8 
989*3 2484*2 


921*1 
071*6 2094.14 
917.72 198013 
885*0 304753 
013*5 471008 


40 

41 0tatribulmf31) 

42 Ledun A Hae«bf24) 

43 W«Sa(38) 

44 Mateo, FfloddT) 

45 IWmn. BamdKS) 

48 Support SaMcea(40) 

49 Tnaparf(18) 

51 OOer Sendees & BuHnesep) 


1964*7 
2724.74 
SI 3044 
2091.10 
104117 
1939*3 
154002 
2381*7 
115089 


+0.7 1941.72 
+0* 2715*3 
+05 212000 
+1* 2062.42 

1841*8 

+1A 1678.76 

154073 

_ 230177 
-Ol 1154*7 


1814*8 

2700*0 

208054 

2803*4 

150040 

1084*2 

153253 

234084 

1141.70 


188071 

280168 

2051*9 

2781*0 

1678.17 

1845*0 

1818*3 


1138*2 


1784*0 

288000 

1830*0 

2321.10 

1777*0 

1409*0 

1547*0 

2070*0 

1199*0 


015 017 
358 044 
044 4*3 
2*2 015 
090 179 
3*7 040 
2*8 009 
3*0 4*7 
455 035 


19*4 3&28 95053 2207*7 
1027 S0S7 937*0 8310*3 
2022 27*3 104072 2308*2 
2171 4018 880*6 334S.11 
12*2 4084 977.11 791450 
19*5 3112 90045 1910*7 
19*8 2481 937*2 180*3 

2051 39*3 91948 
47*3 1016 


13® 

243088 

31® 

273044 

13/5/04 

080*0 

18/2/88 

7/2 

385098 

12/7 

4*07*8 

2/7/94 

1003*0 31/12/85 

10® 

234086 

30® 

2SBUD 

10fi®4 

982*8 

20/2/88 

27/4 

T78M0 

31® 

394110 

8/8/90 

65030 

28/708 

2/2 

IBBMB 

24® 

223248 

2/2/94 

88010 

H/1/8B 

a/z 

113082 

29® 

2128*0 

■W7KI 

838*0 

an«t 

21/1 

1790.10 

21® 

239022 

24/1/94 

954*0 

a/9®2 

27/4 

228362 

28® 

2582*3 

27/4/94 

87050 

14/1/88 

2/2 

186098 

24® 

2231*7 

2094 

08180 

21/1/88 

4/2 

183648 

W 


4/2A4 

988*0 

28W86 

272 

T73SS6 

2W 

2011.17 

2/2194 

S6U0 ltf»®7 

2/2 

209034 

28® 

251071 

2®94 

806*0 

14/1/88 

IB® 

2621.19 

4/1 

3046*1 

1 a/3/w 

87030 

14/108 

4/2 

181062 

8/7 

•JfXWH | 

2/10/87 

98080 

24/8/90 

24/1 

WM 

24® 

30B8JH 22/12/92 

997*0 

14/1/38 

18/1 

2071*7 

24® 

246152 

isnm 

98000 

14/106 

24/1 

283046 

24® 

3487*0 

11/5/82 

187*0 

14/1/86 

ISM 

289029 

24® 

260084 

1VU94 

M01O 

14/106 

18/2 

2342*4 

27® 

289114 

IB/2®4 

927.10 

21/106 

18/1 

1872.17 

07 

20(7*0 

28®®7 

97258 

21/106 

19/1 

264U0 

I® 

416080 

14/U92 

903*0 

13/1/88 

7 n 

312074 

24® 

4736*3 29712/93 

882*0 

a/toe 

18/1 

188119 

27® 

2207 JT 

ian®4 

9U80 

2371/86 

2/2 

2607 JB 

6/7 

331033 

2/2/94 

88090 

21/108 

17/2 

189116 

6/7 

2308*2 

I7/2®4 

97540 

21/106 

17® 

287011 

27® 

334011 

17/2/94 

87020 

97106 

19/1 

1311.94 

25/4 

2B820 

2871793 

91740 

21/1/86 

4/1 

inata 

27® 

183434 29/12S3 

*7010 

8/12/88 

212 

147020 

28® 

188843 

2/2/34 

839*0 

UW1 

V2 

218189 

24® 

2805*6 

3am 

980*0 

14/1/86 

1DT2 

1130*2 

21/4 

2488*0' 

18/7/87 

98010 

14/1/88 


60 U1UHES0E) 

62 Bacnuwm 
64 Gee DM*uttn(2) 

06 retaHnffluntcaeonsW 

88 Walef(13) 


227010 

217051 

108008 

203013 

1896*2 


+0* 2201.45 222187 219552 2112*0 4*3 B5B 14.75 40.18 08005 278133 2/2 2100*2 24® 2782*3 2/Z/S4 00208 3n0ffl6 

-07 2190*6 218057 2120*4 178750 451 11*1 1056 40*4 887*0 2619.72 2® 203412 24® 2919.12 2094 99030 7/UB1 

+2* 1045*1 1821*9 1791*0 193070 6*5 * * £079 002*7 230077 7/1 188450 24® 2370*0 16/12/93 991*0 9T12/86 

+08 108151 1067*4 1982*0 4*0 7.74 1073 10*3 051*3 2458*2 212 1884*8 1® 249150 29/12*3 892*0 3/1008 

+15 1678*1 183090 102755 1881*0 073 1000 7*4 6077 848*1 2M0J9 3(2 16MJI 27® 2120JB 3004 02470 T/8W0 


69 NOHVMNCULSfraS 


70 FWMOM*(104 

71 Bartafin 

•3 taannoe(t71 

74 Lite Anaancef® 

79 IMtfIM BOOtaffl 
77 Omar FnaRdaK24) 
79 Property i) 


1657.74 +05 165002 183*5 1808*2 


1507*5 3*8 854 1033 3070 1159*7 181BL3B 2B 1802*9 54® 187038 2/2/94 60*0 13/12/74 


215093 

2778.73 

120044 

238070 

2768*5 

1827.75 

159045 


+11 2111*4 
+00 2696*« 
+04 120018 
+11 2321*1 
-01 277130 
+1* 180402 
♦1.1 1572*9 


08010 

208060 

1177.18 

2284*2 

1*39*2 

1777*0 

1558*7 


110042 

2281*9 

Z71485 

1773*3 

158411 


209140 

2557*0 

1430*0 

2087.10 

2862*0 

1572*0 

143050 


4*0 0*7 
412 8*4 
03811*8 
554 7*7 
3*211*2 
079 8*1 
079 3*4 


13*3 5041 
1186 73*3 
959 30*3 
1001 82*7 
077 8060 
13*2 4183 
32*4 3497 


84858 Z737.1S 
822*6 3601*5 
81079 159051 

831*6 878159 
989*0 227938 
18 


4® 203474 
4/2 S8NJ7 
24/1 1103*2 
19h 2180*1 
2/2 2638*8 
4/2 1752*3 
4/2 1483*0 


24® 2737.13 
8/7 3801 S3 
24® 182420 
1® 2921*7 
1/7 370150 
An 2279*5 

27® 213140 


4/2/94 

4/2/94 

29/12/88 

13/1/94 

2/2/94 

4/2/84 

SriUB 


87250 

950*0 

870*8 

08750 

982*0 

85030 

710*9 


23/1/88 
2371/88 
2S/8A2 
23/1 /BB 
27/1/88 
1/1CW0 
16/9/BZ 


M mwawteT imstata 273031 +1J aniso 288445 «61*a 236090 120 1*0 53*9 37*1 91077 3184*1 2/2 MOW 27® 31B431 32/94 977^ 1</1®B 


89 FT-SE* Ml-SHA Kl&Q i 53150 +07 152155 1501 A3 148388 1405.72 3*7 045 t&48 32*3 1191M fTBltl 82 144MS 24® 170411 2094 61*2 13/12/74 

■ Hourly movements 


Open 


9*0 


10*0 


11*0 


12*0 


10*0 


14*0 


10*0 


1010 


FT-SE 100 
FT-SE MU 260 
FT-SE-A 350 


3071.4 3057.0 3072.1 3000* 

35407 35415 3545.8 3541.8 

1543.7 15300 15445 15404 

n» e( FT-SE 1W Ugh 0S4ew Le>a: 8*9«" 

■ FT-SE Actuaries WO lndu®tiy baskets 

Op an 0*0 10*0 11J0 

BUg0Cltttrcn 
Ptamaceuttctl 
Wetor 
Berta 


30725 

35408 

1544.3 


30606 

35400 

154Z0 


30613 

35441 

15403 


1100 


13*0 


14*0 


HIM 


30604 

36465 

15400 


1010 


30711 

3350-7 

1546* 


Htfi/dey Low/day 

30704 3057* 

3651.4 3641* 

1547.1 1538* 


Clam pMHriawe Change 


1125® 

2807* 

1986* 

2793* 


11202 

2798* 

1991.8 

2794* 


1124.7 

2807.7 
1894* 

1.4 


1127* 

2810* 

1686* 

2812* 


11208 

2804.8 

16847 

2*13* 


11104 111M 1123.7 11W-8 “J 

2809* 2801.7 2814* 2810.4 28101 

1882* 1883* 1697.3 1694.4 1M7* 

277^.. 2760.9 278a 1 2787.g 2W0O 

S^ F q.eymcttonac^ 5^ 

FT-SE Tou Bcun Wees 3M2JS2 1000.00 ft-SE Md 250 n hr Ttub 3lA2« 1412.60 100*0 Me*Ufad 

FT-SE Smetoap 31/12^2 138179 FT-SE-A350 WMB Navfhajdg^ WJK S DetaendLoaa 

MSSftP 1 -* SSSSJ? VStmmmSi tm*m 1000*0 


1104* +34* 

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■ririanKharawiiwtoriam. — 


Thom 

hopes 

dashed 


(APT) 


Leisure and electronics group 
Thom bmi reversed an earlier 
rise to close 9 lower at 1065p, 
after tHp mrwpawy Hashwi mar- 
ket speculation of a demerger 
of a number of its businesses. 
Volume was lAn at the dose. 

The shares had risen sharply 
in recent sessions fired by 
speculation that the group 
planned to split its rental and 
music businesses. However, 
the chairman told the compa- 
ny’s animal meeting yesterday 
that the current group struc- 
ture, “was a positive advantage 
and adds significant value”. 

Mr Bruce Jones at Smith 
New Court said the news was 
“a slap in the face for the punt- 
ers” but there was value for 
fundamental buyers of the 
stock at these levels. 

The group also announced 
an increased stake in Thom’s 
joint music venture in Japan 
with Toshiba. 

Low counter seen 

The possibility of a counter 
bid for Scottish supermarket 
chain William Low sent the 
shares powering ahead 17 to 
2S3p, well above the 225p a 
share agreed offer made by 
Tesco the previous day. 

Most of the support reflected 
the surprise announc ement by 
J. Sainsbury that it was consid- 
ering its options. But the mar- 
ket was also scratching around 
for other possible candidate* 
There was a feeling that some 
overseas groups might grab at 
the chance to grab Low’s &6 
per cent of Scottish market 
share. Two names that 
attracted some consideration 
were Rewe, one of Germany's 
largest food retailers and Dairy 
Farm International, the food 
retailing arm of Hong Kang's 
Jardine Matheson. The pres- 
sure on the bidder and poten- 
tial bidder saw Tesco 
restrained to a rise of only a 
half to 233p and Sainsbury fell 
2Vi to 397p. 

Banks advance 

The banking sector was in 
the van g ua r d of the market’s 


advance with fund managers 
across Europe said to have 
moved quickly to fill in under- 
weight positions. 

“There was a feeling that 
many institutions have Hii/amri 
the bottom of the market and 
have started to panic," said 
one marketmaker who pointed 
out that the banks have been 
left behind by the market for 
many months. 

News that the Cheltenham & 
Gloucester building society 
intends to announce revised 
terms for its merger with 

Lloyds Bm>1f by fhi» miH/Tte of 

next month was seen as the 
trigger for the upsurge in the 
sector. Lloyds shares raced 
closed 21 higher at 557p after 
turnover of 5.7m. 

NatWest, viewed by some as 
the cheapest stock in the sec- 
tor because of its expansion in 
the US, leapt 16 to 470p on &9m 
traded, while Barclays rose 15 
to 554p. HSBC raced up 31 to 
727p with dealers pointing to 
the strong rally in the dollar, 
linkaH to file HK dollar, 
stories that HSBC is about to 
embark on a big expansion pol- 
icy outside of Europe. 

S.G. Warburg slipped 4 to 
69% amid suggestions that the 
shares had been downgraded 
by one of the market's leading 
brokers. 

Personal credit group Provi- 
dent Financial jumped 16 to 
49% after Hoare Govett pub- 
lished a buy note on the com- 
pany, focusing on the attrac- 
tions of collected credit and the 
group's cost cutting. 

Great Universal Stores 
recouped losses sustained fol- 
lowing the disappointment 
over the non-appearance of a 
share buy back as the stock 
responded to some cautiously 
positive comment on the com- 
pany's fundamentals. The 
shares lifted 6 to 574p. 

United Biscuits fell 5 to 30% 
as BZW cut its 1995 forecast by 
£10m to £190m implying fiat 
profits because of dull trading 
conditions in the US and 
Europe and advised clients to 
sell the shares. 

Advertising and m arketing 
services group WPP jumped 5 
to 107p as S.G. Warburg pub- 
lished an in-depth recommen- 
dation. The house argued that 
the shares deserved to trade at 
a 25 per cent premium to the 
market which translated to a 
medium term target of 127p at 
current levels. 

A slight setback in oil prices 


and a sluggish opening on Wall 
Street restrained the oil majors 
where BP, much more highly 
geared than Shell to a rising 
oil price, settled a penny off at 
400p after turnover of 7.5m 
shares. Shell, helped by the 
upsurge in markets, edged up 
3‘A to 70%. 

Enterprise Oil, a strong per- 
former since its failed bid for 
Lasmo and boosted by the 
recent strength in crude oil 
prices, suffered from a bout of 
profits- taking to close 4 off at 
427p but remained sharply 
higher over the week. 

British Gas was the pick of 
the energy sector, the shares 
advancing 6Vi to 284p as deal- 
ers responded to a growing 
view that legislation to intro- 
duce competition In the domes- 
tic gas market will be delayed 
for at least a year. 

Retailer Marks & Spencer 
improved 9 to 415Kp on the 
anticipated boost to profits 
prompted by its decision to 
open on Sundays. Suppliers 
also benefited - Claremont 
Garments rose 16 pence to 
3L5p. Dewhirst 4 to 13% and 
Courtaulds Textiles 15 to 505p. 

Hartstone, the leather goods 
and hosiery manufactu rer, fell 
10 to 22p as it announced a 
HO. 7m loss after exceptionals 
against £9-06m previously and 
a deeply discounted two-for- 
one rights issue at 1% a share 
to raise £30.3m. The cash call 
had been well flagged but the 
size of it was a surprise. 

Negative press cnmmpnt for 
Rank Organisation, after bet- 
ter than expected interim fig- 
ures on Thursday, left the 
shares trailing 3 to 402p. 

Whitbread rose 14 to 538p 
ahead of next week's annual 
meeting. Some analysts said 
the group was trading ahead of 
budget and brewing margins 
were stabilising. 

Turnover in Harston Thomp- 
son & Evers he d, the thinly- 
traded brewer, bit 3.6m as one 
marketmaker took on a line of 
I:5m shares at 263%p and 
placed them at 264%p. The 
share price rose 3 to 266p. 

Industrial conglomerate BTR 
gave up to 377p, in heavy 
trade of 9.7m with UBS 
reported to be cautious. 

Components manufacturer 
Automotive Precision Hold- 
ings, which hosted a group of 
analysts last week, closed 5 
ahead at lllp. Wagon Indus- 
trial jumped 21 to 49%, after a 
presentation to institutions. 


109 

+ 

5 

123 

+ 

9 

413 

+ 

13 

265 

+ 

14 

207 

+ 

6 

315 

+ 

16 

443 


12 

194 

+■ 

14 

727 

+■ 

31 

557 

+■ 

21 

253 

* 

17 

146 

+■ 

13 

323 

+ 

16 

860 

+ 

38 

499 

+ 

21 

166 

+ 

8% 

43 

_ 

12 

164 

— 

10 

22 

_ 

10 

71 

_ 

7 

289 

_ 

9 

165 

- 

10 

158 

- 

9 


■ CHIEF PRICE CHANGES 
YESTERDAY 

London (Ponca) 

Rises 

Auto Security 
Avonside 
Berkeley Group 
Badcfington 
British Borneo 
Claremont Gamvrt 
Evans Ha! shaw 
Goode Durrani 
HSBC <75p she) 

Lloyds Bank 
Low (Wm) 

MR Data Mngmnt 
S&U 
Securicor A 
Wagon bid) 

Wimpey (G) 

Fans 

Anagen 
Carr's MINing 
Hartstone 
Le a rmont h Burcht 
Peel Hldgs 
Persona 
Prism Leisure 


NEW HIGHS AND 
LOWS FOR 1994 

NEW IMH8 paj. 

OU3 tti BMEWERKS (1) HoB U. BUM 
MAILS a Items (1) QtnBgn, CHEMICALS II) 
OH » Ml K 4PC Prf. OUECTTWC * BJCT 
SOUP m MnaUtMil. Tadpoto Tool, 
BHMEEHMa (1) Bm 8W. ENG, VBECLSB 
0 AuumoUm PracMan, UPF. extractive 
HWB m OritfeflNin, Goncor. QoW Raids SA. 
knprta PMfeun, Fkanribug Ptaaiun, WaaMm 
Araaa. FOOD MAMJ7 (T) Manham (EQ, 
INVESTMENT TRUSTS (3) OTHER BBIVSt 
BUSKS 0 ) GmM SduShol Kuril Lunpur 
Kitnng. PRTHO, PAPER A PACXQ (1J Sox*. 
RETAILERS, FOOD (1| Low (M0 
TBLSCOMMUMCATKMB (I) Sacutoor, 
TRANSPORT a PM) SNpe. PM, TNT. 
AMEMCANS (I) Amar. Cyanon+d, CANADIANS 
tDOril Canada. 

HEW LOWS MM. 

BULDMQ 4 CN8TRN (3) AnrtMa Sytaa. 
MoAtptoa M. CHaflCALS (1) Wads Samya. 
DtSTmUTDRS M F*a Moor, GanSnor. Uho 
Suppflaa, WWgjae. ntawfflWO M QBE Irri. 
MS tart, UacaMK. Namrtes Toch.. 
BdlMOTIVI INOB (3) Nasan Gpc Ln. Nta.. 
Orion, POOO MANUF (0 Ooidsn VMa. UrAed 
Baeurts, HEALTH CARE (I) Aragon. London 
ML, INSURANCE (® BcartnocK Haaffi (CO. 
Uojd Thoinpatin. Lownon Uantaon. 
TapdanmariL MVESTmr TRUSTS {S 
INVESTMENT COMPANIES Indoneaia Equity, 
ScaiWl Amartca Mftts* LBSURE4 HOTELS PI 
am Prt»L SfJamaa Baodi HoteMJTE 
ASSURANCE (1) London 4 Mmcnaslv, MEDIA 
(1) Swing. OL EXPLORATION A PROD ft) 
AahiL 00, BfreORATB} (1) Shal Tlana 7)M 
Prt, OTIUn HNANCJAL BJ London Foftoflnq. 
Towny Law. PRTNO, PAPER 0 PACXQ (I) 
Fat**on HL. PROPBTTV (1) Pari. RCTMLBI0 
POOO (1) AppMy Wamaard. RETA0BU, 
OSORAL » CatpoMgK. 09, SUPPORT 
8ERVS M LMnOOrtOl A Burtwtt. MacfOA. 
Paewn, OaSty SoRwwa. Spargo, TEXTILES a 
APPAREL (Q HBrtrtona. Lowa (RHL WATER {!) 
Volk Wawwortrt. AAiBVCANS fl) Morion (JPJ. 



91% of Professleaal 
Investors la Europe 
regularly read the Financial 
Tidies and 75% consider 
the FT to be most 
Important or bmM In their 


19% of all Senior 
European bostnessmeo read 
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than any other Int erna tio na l 
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■Tn. 


WORLD STOCK MARKETS 


AMERICA 

Equities flat on mixed 

Wall Street 


economic data 


US share prices ended the 
week mostly Oat, in spite of 
fresh gains in the bond market, 
where long-term interest rates 
came close to inching below 7.5 
per cent, writes Patrick 
Harvmon in New York. 

By ipm, the Dow Jones 
Industrial Average was up 037 
at 3,740.22. having spent the 
entire morning session no 
more than a few points either 
side of opening values. The 
more broadly based Standard 
& Poor’s 500, which moved in 
simi l ar fashion, was down 0.15 
at 453.26, while the American 
Stock Exchange composite was 
up 0.92 at 430.96. and the Nas- 
daq composite 1.27 lower at 


EUROPE 


720JJ9. Trading volume on the 
NYSE was 153m shares by 
lpm. 

The market opened in a sub- 
dued mood, although the feet 
that computer problems 
delayed the start of trading on 
the Nasdaq market for almost 
two-and-a-half hours had as 
much to do with the downbeat 
start to trading as any thing . 
Sentiment, however, was 
affected by early declines in 
the bond market and a wiwW 
drop in the value of the dollar 
against the yen and the 
D-Mark. 

The day’s economic news 
was mixed, with a 0J5 per 
gain in June industrial produc- 
tion warmly received; but a 
jump in the June capacity util- 
isation rate from 83.5 per rent 


to. 83J per cent - the highest 
level since June 1989 - deep- 
ened concern about inflation 

A mid-morning rally in 
bonds, which temporarily 
pushed the; yield on the 30-year 
issue down below 7.5 per cant, 
failed to stimulate much inter- 
est in stocks, which ian giijRhpH 
close to overnight levels. 

Among individual, stocks, 
IBM iellSlM to $57 as investors 
began to Worry about the com- 
pany’s second -quarter earn* 
mgs, wideh are expected next 
Thursday. Analysts are looking 
for a profit of about J440m, os- 
72 cents a share. 

Other big technology st/vkg 
were also .weaker, with Hew- 
lett-Packard down $% at $75%, 
Compaq , off S% at $35%. and 
Unlsys $% lower at $8%. 


Hardest hit was Texas 
Instruments, which tumbled 
$5% to $81 after a big increase 
in second quarter net income 
to $lMm felled to satisfy inves- 
tors- The decline in the stock 
hit other semiconductor issues, 
with Motorola down $1% at 
$48%. National Semiconductor 
off $% at $17% and Dallas 
Semiconductor down $2% at 
$16%. 


Canada 


Toronto stocks were «qsigr In 
quiet midda y trading as Inves- 
tors erased early gains and 
took profits after Thursday’s 
rally. Losses in fjnanrfci ser- 
vices . conglomerates and trans- 
port offset gains in communi- 
cations and gnidg 


The TSE 300 composite index 
was down 6.00 at 4089.70 in 
volume of SLOOm shares val- 
ued at C$411m. Advancing 
stocks led declines by 311 to 
218. with 292 unchanged. 

Brazil ” 


Shares in Sao Paulo were up 
2.7 per cent in heavy mid- 
morning trade after another 
opinion poll showed that Mr 
Fernando Henrique Cardoso 
was continuing to pniw 
in the presidential race. 

The Bovespa index of toe 56 
most-active shares was up 1,081 
at 41,246 by 1425 GMT. 

Falling domestic interest 
rates also provided support as 
banks cut the yields paid on 
3ftday certificates of deposit 


in Roche 


Zurich falls prey to fresh weakness 


1 FT-SE Ac* . Share Indices 1 

Jul is 

Hoortf Mm 

Qp« 

1020 

run 

THE SJfiOP£AN SS 4 £B 
12 m ''Visa 14.00 ism am 

FT-SE EMOteefc 100 
FT-SE BmttaeX 230 

134321 

1388 L 21 

1344.14 

138926 

13*550 

138755 

1348.11 1348.77 
1381.77 139255 

134449 1347.73 134952 
.138852 138068 139265 



M 14 

JJ 13 

Jd 12 . 

- M 11 jU 8 


FT-SE Enotraek 100 1337.33 1325 M 1317.85 132BJ8 131BX0 

fT-SE EunXrack 200 13708 1362.13 1350+1 .. 13&80 135UM 

am ran eaten** tatt* too • lasi-os 200 . inn lottmt 100 - ixur ao - Us' 


land. Ciba dipped SFr5 to * weighting in. toe Dax. Allianz 
SFr730 and Sandoz gave up rose DM64 to. DM2^97 on the 
SFr6 to SFr679. 

Banks, which, produce half- 


Bourses had a mixed day. The 
recovery in the dollar, in US 
treasuries and in European 
bonds helped in some coun- 
tries, particularly Germany, 
where the expiry of DTB 
options contracts exaggerated 
the ebullience of equities. 

However, there was contin- 
ued equity weakness In Swit- 
zerland. where bonds were a 
strong market, and Madrid ran 
out of steam although Spanish 
bonds had been the strongest 
market of the week, writes Our 
Market s Staff. 

ZURICH was lifted by the 
expiry of July futures con- 
tracts early in the day but, sub- 
sequently, Roche reasserted its 
negative influence. The SMI 
index finished 13.4 lower at 
2JT14.9, after a high of 2^563, 
and 1-8 per cent lower on the 
week. 

In its latest market outlook, 
CS Investment Research raid 
that the downside potential for 
the market was limited and 
that a turoround was likely in 
the next two to four weeks. 

Roche certificates, under 
pressure earlier in the week 
after disappointing half-year 
sales figures, gave up SPi*7D to 
SFr5.430 with foreign investors 
said to be taking profits after 
Thursday's improvement. 
According to one analyst, it 
appeared that index-linked 
hinds were selling in order to 
switch holdings out of Switzer- 


year statements next month 
ended mixed UBS lost SFr6 to 
SFrl.166 and CS Holding rose 
SFr4 to SFr577. 

FRANKFURT consolidated 
Thursday afternoon's gains on 
the surge in bund futures, 
climbed about another percent- 
age point on the session and 
then broke through the 2,100 
mark in the afternoon, the Ibis- 
indicated Dax willing the day 
1.6 per cent higher over 24 
hours at 2,103-54. 

In official trading hours, it 
was up 2.1 per cent on the 
week at 2.093.61, turnover clim- 
bing from DM5.4bn to 
DMB.lbn, but market profes- 
sionals «»iri that both the scale 
of rises and business activity 
were inflated by the DTB 
closures. 

It was noticeable, they said, 
that toe most of the big moves 


session, and^another DM19 to 
DM2££6 after . hours. The top 
three, shares by moves in Ibis 
trading were Daimler, Deut- 
sche Twnv nod Siemens. 

Outside the , Dax index the 
ladies, clothing company, 
Escada, put on DM31 or 9.6 per 
cent to DM353 on positive first- 
half figures, and toe forecast 
that this year's results will 
exceed expectations. 

MILAN - was unable to main- 
tain early mni^w faiw on the 
last day of . the monthly 
account as toe dash between 
the - government and magis- 
trates over moves to limit pow- 
ers of arrest' in corruption 
cases raised the political tem- 
perature. 

The Comit index finished 
9.91 higher at 71L12, a 3.5 per 
cent rise cm the week. How- 
ever. 'the real- time Mfhtel index 
reflected the. dayfe pull-back, 
ending 16 hjfehgr at 1 1 , 20 4, after 


Independent Strategy, which 
has reduced its exposure to 
Italian equities from a neutral 
2£ per cent to 1 A per cent in 
its model portfolio, commented 
that toe government measures 
announced on Wednesday were 
unlikely to be sufficient to 
achieve their budgetary target, 
and that the deficit could rise 
to 11-12 per cent of GDP next 
year. The London-based group 
thought that the government’s 
failure to institute credible 
measures to reduce the deficit 
in 1994 and 1995 would weigh 
heavily on financial market 

ggntimnnl 

Mr Richard Davidson at Mor- 
gan Stanley also reiterated an 
underweight recommendation 
in Italy, commenting tha t the 
Berlusconi factor was no lon- 
ger a positive and Italian poli- 
tics looked as fragmented as 
ever. The market’s valuation 
was high at 21.6 times 1996 pro- 
spective earnings and there 
was still a significant equity 
supply overhang at a time 
when even Hnnw^d-jr fund flows 
were slowing, he said. 

Telecommunications stocks 
remained in demand. Stet ris- 
ing L89 to L5.607 and Sip 
adding L60 to L4.446. 

Some insurers also contin- 
ued their strong showing. Ina 
added L28 to L2.430 while Ras 
was up L550 to L26200. Gener- 
ali was an exception, giving up 
L350 to L41350. 


AMSTERDAM was mainly 
unaffected by the expiry of 
options and the AEX index 
closed the session 325 higher 
at 392D9, for a week’s rise of 
1.6 per cent 

The main international 
stocks were firmer, reflecting 
dollar stability: Royal Dutch 
was up FL2.3Q at FL19Q.1J0 and 
Unilever was FI 1.20 higher at 
FI 18480. 

Heineken. strong in recent 
sessions, slipped 50 cents to 
FI 221.50. Hoare Govett rated 
the stock a buy yesterday and 
forecast 1994 eps of FI 14J50 per 
share and FI 16^0 for 1995. 

MADRID was rescued by 
Telefonica which rose Pta50 to 
Ptal^TO in 5.7bn shares. Turn- 
over was inflated by the clo- 
sure of futures contracts but 
toe general index rose only 0.13 
to 302-79, up 3.1 per cent on the 
week. 


Written and edited by WUHam 
Cochrans, John PTtt and Wchaal 

■ a 

MOiyW 


SOUTH AFRICA 

Johannesburg held on to 
strong gains on impr oved sen- 
timent helped by a firmer gold 
price and revised expectations 
of better c or por ate results. The 
overall index was up 69 at 
5,576, the industrial index 
added 76 to 6,383 and gold was 
62 better at 2.164. 


pump in shares wtto a heavy. . an early higfe-af LL427. 


Dow remains resilient 
in face of weak dollar 

Patrick Harverson on the currency shock waves 


E very week, stock market 
strategists at US securi- 
ties houses and banks 
send out reports to clients and 
journalists outlining their 
views on the current state of 
the financial markets and the 
economy, and the outlook for 
both. Every posable factor that 
might have an impact on stock 
prices, bond prices, and the 
economic environment is 
picked up, studied and com- 
mented upon. You name it, 
they analyse It 
Yet, tn the past few weeks, 
tiie one factor that has grabbed 
most of the headlines, and 
dominated much of toe talk 
among investors, politicians 
and policy-makers - the rapid 
decline in the value of the dol- 
lar - gets relatively short 
shrift in the majority of 
reports. The dollar does receive 
a mention every now and then, 
but you would think from read- 
ing the material that Wall 
Street's top equity strategists 
do not care greatly what hap- 
pens to the greenback. 

to a way, you would be right. 
Unlike the UK, where the 
pound is not only a key influ- 
ence on the <hap a and direc- 
tion of the economy but also a 
symbol of national virility, in 
the US the national currency 
plays a significantly less 
important role in economic 
life. 

However, it has been dear in 
the last few montha that the 
dollar’s ifailinp hag hw>i> dis- 
turbing the financial markets, 
especially bands. Since the end 
of March, when the dollar was 
holding relatively steady at 
around Y106 and DM1.68, it has 
fallen 7.6 per cent against the 
yen (to a new post-1945 low) 
and 9 per cent against toe 
D-Mark 

Over the same period, the 
yield on the 30-year bond hag 
jumped from 696 per cent to 
7.67 per cent. Obviously, other 
factors such as monetary pol- 
icy and economic statistics 
influenced band prices but the 
numbers provide a broad indi- 
cation of how the dollar can 
affect the gove rnmen t market. 

The direct impact of a falling 
dollar is almost always greater 
on bond than stock prices 
because inve s tors in bonds fear 
that the drop in the dollar will 


feed through into higher infla- 
tion and eventually force the 
Federal Reserve to raise inter- 
est rates to curb inflation and 
support the US currency, and 
that the failing dollar will 
make US financial assets (that 
is, bonds) less attractive to for- 
eign investors. 

Stocks do suffer because the 
price of bonds ultimately deter- 
mines the interest rates at 
which US companies and con- 
sumers borrow money, but 
they suffer less than bonds 
because other factors, most 
notably corporate profitability, 
play a bigger role in determin- 
ing the value of stocks. Thus, 
it is no surprise to discover 
that since late March, when 


the dollar began 

to decline 

Dow Jones 

Dollar 

Industrial Av. A 

4fl00 — * 

^ Yen parS 
^ - 115 

3,900 a 

— 110 

3300 /- IITJ 

r*1°5 

3,700- It few 


3 JBOQ - f » 

9.500 ■■ ■ - 1 — 1 »- 

t 100 

96 


Sourcg: Drt mr aam 


sharply, the Dow has fallen 
only 3 per cent. 

One very good reason for the 
Dow's resilient performance in 
the face of dollar weakness is 
that a lower US currency Is not 
necessarily bad news for 
stocks. When it comes to share 
prices, there are always good 
and bad points about a dollar 
decline. 

First, the good points. A 
weak dollar makes US prod- 
ucts cheaper abroad, berating 
exports mid corporate earn- 
ings. It also attracts more via- 
tors to the US, who spend their 
money on US products and ser- 
vices. Higher exports and more 
tourism dollars in turn help to 
reduce the massive US trade 
deficit A Iowa: dollar is also 
good for the gaming s of us 
companies with big overseas 
sales in Japan and Germany, 
because when they repatriate 


those revenues they get more 
dollars for every yen and 
D-Mark spent on their 
products. 

As for the bad points. A 
weak dollar makes foreign 
products more expensive in the 
US: this adds to inflation 
directly, and indirectly, 
because the rising cost of for- 
eign-made goods gives compet- 
ing US producers the cover to 
raise their own prices. 

Also, a failing dollar Is bad 
news because it deters foreign 
investors from wanting to own 
US-dollar denominated stocks 
and bonds, something which 
has contributed to the recent 
drop in share prices and the 
rise in long-term interest rates 
as measured by bond yields. 
Finally, a weaker dollar is 
often an ind ication that foreign 
investors do not like or trust 
US economic policy, which 
should always be a worry for 
the stock market. 

This is the point that Mr 
John Lipsky, chief economist 
at Salomon Brothers in New 
York, believes is the key to 
understanding toe impact of a 
devalued dollar on stocks. He 
says: "The most important 
implication of the dollar’s 
weakness for the stock market 
is the implied lack of interna- 
tional investor confidence in 
US policies, the US economy 
and US financial markets. 
Hence, the juxtaposition of a 
weakening dollar, weakening 
bond market and weakening 
stock market have together 
formed the basis for concern.” 

M r Lipsky, however, 
believes that fears 
about the impact of 
the faiWng dollar on US infla- 
tion have been overplayed, 
because the dollar has not 
declined greatly on a trade- 
weighted basis. 

In other words, in spite of all 
the headlines about a “dollar 
crisis”, the US currency has 
fallen sharply only against the 
yen and D-mark, while actually 
strengthening against the 
Canadian dollar and Mexican 
peso. And in the list of US 
trade partners. Canada and 
Mexico rank first and third, 
respectively, so talk of 
imported inflation is mostly 
just that - talk. 


ASXA PACIFIC 


Hong Kong ahead with gain of 3,5% 

tiaHy already, there was still region to accentuate the 
room for a rally over tbs next 


Tokyo 

The Nikkei average rose for 
the third consecutive session 
helped by stability in the cur- 
rency markets, writes Emiko 
Terazono in Tokyo. 

The 225-issue index closed up 
52.11 at 2Q.770J5, for a week’s 
gain of 1.2 per cent, after rising 
to the day’s high of 2Q.877J98 tn 
the morning, before falling to a 
low of 20,718.14 on profit-taking 
and position adjustment ahead 
of the weekend. 

Volume was 288m shares 
against 292m. Most investors 
were reluctant to accumulate 
positions ahead of toe week- 
end. The Topix index of all 
first section stocks rose 395 to 
1,668.47. while the Nikkei 300 
edged up 0.56 to 303.03. 
Advances led declines by 579 to 
393. with 200 issues remaining 
unchanged. In London, the 
ISEj Nikkei 50 index was up 
2.62 at 135288. 

Some retail stocks were 
sought on restructuring efforts 
and the recent return in con- 
sumer confidence. Sogo, a 
department store, gained Y70 
to Y821. Analysts said that 
v although department store 
f stocks had gone up substan- 


few weeks. 

“They're good for the short 
tom trader, but tor the funda- 
mental investor, clothing 
wholesalers are better invest- 
ments," said Mr Paul Heaton, 
retail analyst at Baring 
Securities. 

Electric cable makers were 
higher on reports of govern- 
ment investment in fibre optic 
projects as a part at the gov- 
ernment’s information super- 
highway development Furu- 
kaw a Electric rose Ylfi to Y731 
and Nippon Hume Pipe gained 
Y52 to Y777. 

Profit-taking depressed some 
issues which had rallied on 
Thursday: Aisin Seiki lost Y60 
to Yl.450 and Sony Y1D0 to 
Y5.950. 

Nippon Telegraph and Tele- 
phone rose Y6.000 to YB69.000 
and East Japan Railway gained 
Y5.000 to Y510.00Q. 

In Osaka, the OSE average 
put an 79.14 to 23,22785 in vol- 
ume Of 39m shar es. 


Roundup 


The steadier US dollar 
and interest rate outlook 
allowed markets in the 


Positive. 

HONG KONG rose 3.5 per 
cent on the day and 8.1 per 
cent on the week, the Hang 
Seng index closing 308.74 
higher qt 9417.02. Foreign 
funds poured back into the 
market, and turnover rose 
froih HK$384bn to HK$5.11hn 

Banks, about to report earn- 
ings, saw keen rotational bay- 
ing interest, HSBC rising 
HK$2.75 to HK$8780, its Hang 
Seng.Bank amt by HK$1.75 to 
BESSAA0 and’ Bank of East 
Ada. by HK$L80 to HK$33.40. 
Properties, continued their 
rebound. •. 1 

SYDNEY noted a a continu- 
ing fixtures rally as the All 
Ordinaries index dosed 508, or 
28 per emit better at 2,058-0. 47 
per cent iq> on the week in 
turnover of nearly A$600m. In 
fUtpres; the September share 
pride index contract rose 58 to 
2070 after a gain of 48 points on 
Thursday. 

BANGKOK projected good 
second quarter finance and 
bank results- and the SET 
index jumped 4280, or 38 per 
cent to 184417, ,4 4 per cent 
better on the week. 

Turnover- was Btl58bn, its 
highest since February L Thai 


Farmers Bank topped the 
active list, Bt7 to Btl33 after a 
56 per cent rise in net 
profits. 

WELLINGTON ended with 
the NZSE-40 index 38.41 higher 
at 2,01281, up 28 per cent on 
the week. 

TAIPEI saw late buying of 
financials and electronics push 
the weighted index up by 
10289, or L6 per cent to a six- 
month high of 6,40780 in heavy 
trade, 38 per cent up on the 
week, turnover rising to 
T$88.08bn from Thursday’s 
T$8486bn 

MANILA was lifted by the 
Central Bank’s move to trim 
the level of required reserves 
cn bank deposits by three per- 
centage paints. The composite 
index ended 47.07 up at 
2,60490, 08 per cent up on the 
week. 

SEOUL, in contrast, Ml on 
local news reports that banks 
had been told by the central 
bank to refrain from stock 

fiiwus tment. 

The central Bank of Korea 
(BOK) denied the reports, but 
selling continued throughout 
the afternoon and the compos- 
ite index closed 8.49 lower at 
95088, almost flat on the 
week. 


FT-ACTU ARIES WORLD INDICES 


jointly oompfed by Tte Financial Timas Ltd. Goldman, Sarin S Co. and NatWM 

NATIONAL AND 

REGIONAL MARKETS WMTSDAY.WLY 14 IM* 

US Day's Pound 

Defer Change Staring Van OM Currency 

% Max Index Index Index 


Sacuttoa. Ud. In con)uncdon wfth the tnsdtuta of Actuaries and the Faculty of Actuaries 


WEDNESDAY JULY IS 1894 


Figures in panemheaea 
show number ot Inea 
of Block 


Local 
% dig 
on day 


Gross 

Ov. 

Yield 


US Pound 
Defer Staring 


Yen 


DOLLAR MOEX 

Local Year 

DM Currency 52 week 52 week ago 
Wah Low (approx) 



_ - 168.34 

1.0 

15958 

10458 

13528 

15257 

1.7 


180 J 3 

0.5 

17958 

11756 

15258 




_. 1 70.49 

0.4 

181.82 

105.91 

13750 

13351 

1.4 

Canada ( 106 ) 

127.61 

12 

12007 

79-28 

10254 


Damerk p 3 > 

FHand p 4 ) 

28968 

155.87 

0.1 

- 0.7 

147.76 

9853 

107.02 

88.10 

22351 

12525 

138.43 

11596 

28573 

16758 

143.16 

11356 

395*1 

ao 

05 

ai 

-05 

France ( 97 ) — 

Germany flSffl. 

_...17227 
141^1 

-05 

-04 

-<L 3 

0.4 

16350 

134.43 

Hong Kong B 6 ),™ 

196.06 

1 KJ 8 

12152 

15757 

17850 

0.7 

IMy (Bij_ 

87.78 

2.1 

05 

1.6 

83.21 

ieo. 1 T 

448.88 

64-53 

104-87 

18578 

104.87 

06 

Jep«i ( 4691 * 

473.51 

294.17 

38052 

472 ^ 

15 

Mexico ( 18 ) ... 

1915.87 

J 04.43 

-06 

-02 

181517 

19354 

118021 

12753 

1 S 3&57 

16452 

712357 

161.76 

56^49 

186-78 

23658 

26258 

13625 

24085 

12517 

06 


. 65.86 

- 1.4 

82.43 

4081 


&0 


203.40 

1.7 

182.82 

12856 

210:74 

165*6 

27250 

22056 

116.04 

Stagopcre ( 44 ) . 

_^^33922 

1.4 

32157 

0.7 

05 

South Africa ( 59 ) 

2B6M 

143.16 

3.0 

-ai 

271.16 

135.71 

177.70 

6653 

Sweden ( 3 ® - 

5388 

rni 

iii 

-02 

201.14 

15050 

13151 

96.49 

17051 

127.40 

1 3 

United Kingdom ( 204 )_. 
USA 5191 

1.3 

1.1 

184.25 

175.46 

120.76 

11459 

156.19 

148.74 

18426 

18559 

1.4 

1.1 


am 

106 

413 

2-85 

103 

nw 

3.13 

1-31 

SOS 

3.41 

1.51 

0.73 

1.73 

180 

SSI 

400 

1 . 77 : 

1.79 

224 

418 

1.66 

1-33 

408 

280 


108-07 
18822 
16463 
I26.il 
20052 
15485 
*173.13 
14230 
360.43 
10624 
' 05-96 

168.17 
■ 48478 
1932.12 
204|B0 
£630 
1 SBl 86 
33454 
27T.88 
145L24 
21286 
19&S3 
19189 
16X12 


15780 

.17820 

. 180.79 

119.40 

256.17 

14880 

16381 

13479 

341.27 

. 16466. 

.8189 
. 15923 
. 44003 
182928 
19381 
’6329 


103.41 
11 & 7 B 
10527 

7824 

18722 

9728 

107.42 


223JM 

121.14 

5323 

10434 


. 316.74 
382.90 
136.01 
20125 
44820 
18127 
17327 - 


1166.78 

12727 

41.45 

12406 

20727 

17223 

8827 

1312 B 

97.12 

11826 

11322 


13320 

16053 

13522 

10085 

21524 

12S22 

13046 

11325 

28827 

156.15 

6076 

13420 

371.70 

1545.19 

183.79 

5043 

159 -B 1 

26725 

222-07 

11455 

17000 

126.19 

153.48 

14045 


14086 

15035 

132.77 

12529 

221.48 

187.74 
143 L 1 B 
11326 
35754 
177.72 

9820 

10434 

48322 

718223 

18027 

6057 

16323 

23327 

28040 

197.43 

23824 

125.75 
18127 
163.12 


18015 

195 A 1 

17827 

14521 

276.79 

15625 

18527 

147.07 

97.78 
170.10 
62123 
264728 
207 A 3 

7759 

20622 

37822 

2 BB 24 

15479 

23125 

17628 

21496 

196.04 


13823 
14823 
14322 
12054 
20728 
B 522 
14820 
11229 
271 <42 
15720 
5728 
12454 

5wawn 

161657 

18459 

5122 

156.74 
24427 
17S» 
11823 

168.75 
12446 
170.40 
17825 


138.18 

14920 

15022 

126.73 

21030 

9725 

16226 

11526 

28045 

15050 

8925 

150.97 

32490 

1568.78 

16824 

5223 

16049 

24521 

2Q8.T1 

12056 

17122 

1Z627 

17320 

18424 


W«MEx.UK(1968). 

Worid Ex. So. At pv 
Watt Ex. Japan (170 

Hw Worta index (2172). 17048 


169.72 

06 

21005 

-01 

175.41 

05 

,..^... 172.80 

OS 


1.1 

162.66 

02 

54153 

0.6 

173.70 

06 

. 1 74.71 

0.7 

175.75 

07 

.. 182.83 

0.9 

176.48 

0.8 


Qfl 16029 10044 

1.97 13125 
QS 18628 10627 

as 16329 107.40 

1.1 172.08 112.77 

02 14472 9484 

0.6 229.06 15011 

0.6 16488 107.91 

185.62 10824 
0.7 168.64 10020 

0.9 17322 11326 


13836 15065 

1 B 8 . 5 Z 20323 
14026 11420 
13823 129.01 

14527 181-15 

12228 13024 

19417 21852 

13926 13226 

14040 145.19 

141 26 1 * 7.76 
14622 17328 


1.0 

3.09 

05 

IAS 

06 

' 154 

08 

1.60 

1.1 

269 

0.7 

2.49 

05 

255 

06 

151 

05 

206 

05 

Z2S 

15 

254 


1B8. I 72 

j211-06 

17465 

17127 

179158 

15236- 

24009 

172-70 

17321 

174S 

181.2S- 


159.7* 

19922 

185.26 

18221 

17002 

14427 

22722 

18351 

16426 

.16523 

47150 


10488 

13085 

10030 

106.70 

111.42 

94.54 

14657 

107.15 

10726 

10028 

112A5 


13423 

169.79 

13920 

13T-S3 

14352 

12127 

192 X 2 

138.12 

138.77 

138 X 7 

14465 


149.16 

20230 

11X47 

12301 

170.19 

12669 

21459 

131.24 

14400 

146.47 

17156 


17656 

22060 

175.57 

17266 

182.73 

157.47 

29421 

17070 

17558 

17056 

10620 


14262 

16060 

13470 

14368 

17567 

12477 

16483 

14566 

15566 

15864 

16661 


14417 

16269 

15419 

14836 

180.77 

12S67 

18642 

18063 

159.72 

18071 

168.16 


1 (mdfafato to* «OaScn- 1 


109,82 141.80 148-77 


1 H/fttL 


22S 


1066 ? 14007 14767 17867 1 S &85 18083 


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FT COLO MINES INDEX 


Jri Ki*g Jri JH Tor Emari* BZlMrii 
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taw prlcea —a wmridili fefee rife 


RISES AND FALLS 


— — On Friday - -—On the Week — — 

Waaa Bfe Same Waaa Me Same 


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DM baaad on taoaa cempanka Mad on a» London Staw Savtaa. 


TRAOmONAL OPUOttS 

Rrat Oeainga JriyU Last Declarations Oct 13 

LM PaaBnga Jriy 22 For aafHemant Oct 24 

Cafe: Alton WL EmtumaL NHL Prat, Premier Cone. Regent Corp, Ricardo, Select 
Inda, Tirilow 06. Waveriey Mng. Puts TUkw 01, Wtamlay Mng. Puts & CbM Arccn 
HL Cable & Wfceiasa. 


LONDON RECENT ISSUES: EQUTTKS 


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Isaua Amount Latest 
price ptad Rerun. 199* 
p ip date Hon Low spick 


47 

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2 pm Helena 

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Earn, ykl % Ml S 63 558 536 5.72 5.88 4.95 5ja a» 

WE ratio net IB* 10 JJ 7 18 A 2 18 J 59 16.73 2 fiA 4 3 X 43 

P/E rate nl 1 S 87 1093 104 T 7 1034 19 l 48 23^5 6060 Mm 


Ordnary Share howly changea 

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2406.4 Z 383 J 24 Q 2 jTz«X 11 24009 2397 JS 23950 2397 -i Z 402 JJ 2406 ^ ^ 
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SEAQ beqjeina 32JS77 26,488 24^55 22X41 

Equity tumewr pifl- - 18146 14243 118M 

Equity bergamot - 28.835 27,702 34,146 

Sharfa traded {mftt - 681 J 5462 467A 

T Bcutng knremancM twtaiaaa and nw i w tumow. 


23J211 

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tv** . 



FINAN CIAL TIMES WEEKEND JULY 1 6/JULY 17 1994 


LONDON SHARE SERVICE 


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bearings 


FINANCIAL TIMES 

Weekend July 16/July 17 1994 


I A FINANCIAL TIME j 

( for change ^§5^ ( 

j Ncffpirt j 


Society hopes scheme will avoid court move 

C&G confident of plan 
to allow Lloyds merger 


By Alison Smith 

Cheltenham & Gloucester 
Bunding Society said yesterday it 
was confident of devising a 
scheme that would enable the 
agreed takeover bid by Lloyds 
Bank to proceed, without having 
to appeal against last month's 
High Court judgment 

While C&G believes the deal, 
heralded as overcoming the 
obstacles for banks in taking 
over building societies, can go 
ahead, it also signalled that there 
could be a delay in the time- 
table. 

A restructured plan for 
distributing the £1.8bn offered by 
Lloyds and a new timetable for 
getting the agreement of C&G’s 
l.4m members, are now expected 
to be announced in mid-August 

Yesterday's statement, which 
came a few days before the dead- 
line for deciding whether to seek 
an expedited appeal, is a sign 
that C&G already has an out- 
line revision of the original 
scheme. 


By Robert Taytor, 

Labour Correspondent 

Railtrack plans to make a further 
direct' appeal to Its 4,600 striking 
si gnalling staff in an attempt to 
prevent the stepping up of the 
dispute after next week. 

The company will write to staff 
with more details of its latest pro* 
ductivity pay offer in the next 
few days. 

Railtrack managers said signal* 
ling staff are confused by their 
union executive's decision to 
move to a 48-hour strike from 
noon on Tuesday, July 26. The 
sixth 24-hour Wednesday stop- 
page is planned for July 20. 

Railtrack said it had heard 
from about a quarter of the strik- 
ers on a special telephone “hot- 
line" over the past fortnight 
through its "hearts and minds" 
campaign. While the company 


Dollar boost 

Continued from Page 1 


Analysts were sceptical yester- 
day, though, about whether the 
US currency was experiencing 
anything more than a temporary 
correction. Investor sentiment 
towards the currency remains 
bearish. 

Mr Avinash Persaud, head of 
currency strategy at JP Morgan, 
said the US Federal Reserve was 
slow to respond to inflationary 
pressures. He said he doubted 
whether the sharp rally in US 
bond prices, which supported the 
dollar, could run much further. 


C&G’s task is to devise a lawful 
scheme giving the greatest possi- 
ble overlap between members 
who can vote and members who 
are eligible for cash payments. 
The smaller number of those 
qualifying for payments means 
that the payments themselves 
should be higher than originally 
intended. 

Lloyds Bank shares rose yester- 
day after C&G’s statement to 
close 21p up at 557p, as the 
bank's strategy of expanding its 
share of the retail financial ser- 
vices market appeared to be back 
on track. IT approved, the bid 
would create the fourth largest 
mortgage lender in the UK, sup- 
plying 7 per cent of the home 
mortgage market 

The new scheme will have to 
take account of the decision by 
Sir Donald Nicholls, the vice- 
chancellor, that cash payments 
could not be made to investors of 
less than two years' standing, or 
to borrowers from the society. 

This confirmed the 1986 Build- 
ing Societies Act which intended 


acknowledges that the staff 
remain loyal to their union’s 
leadership, the calls were helping 
management clarify a nd improve 
its pay offer. 

An official said that Railtrack 
had not yet reached the point 
when it might consider imposing 
new contracts of employment on 
the signalling grades which 
would change working practices. 

The company has ruled out the 
option of dismissing the signal- 
ling staff and replacing them 
with a newly trained workforce. 
Railtrack believes that would 
dose down the network for at 
least three months and deal a 
mortal blow to the company's 
future. 

Railtrack continues to hope 
staff will put pressure on the 
RMT leadership to restart peace 
talks. The staff have already lost 
£300 in pay through the strikes. 


Continued from Page 1 


Biondi, the justice minister. 
“Everything can be modified, as 
long as the basis of the decree 
is not overturned." 

The prime minister said the 
decree had his full backing and 
that of the whole cabinet 

In a reference to the Milan 
team, Mr Berlusconi said certain 
magistrates “had become stars, 
and are disappointed if their 
faces don’t appear on television 
frequently. What better way to 
become the centre of attention 
than to adopt this or that mea- 
sure reducing people's liberty 


to stop "speculative flows" 
between societies, by creating a 
class of members who could vote 
on such an offer without being 
eligible for any immediate 
benefit if it proceeded. 

The very high voting thresh- 
olds required under building soci- 
ety legislation for members to 
give their approval for such a 
deal means that these votes could 
be critical to acceptance of the 
proposaL 

Mr Andrew Longhurst, C&G 
chief executive, and Sir Brian Pit- 
man, Lloyds Rflnfe rhiAf execu- 
tive, both expressed confidence 
in the continuing long-term ratio- 
nale for the deal 

The original schedule envis- 
aged the deal being concluded in 
the second quarter of next year - 
after a Lloyds Bank extraordi- 
nary general meeting in mid- 
November and a special general 
meeting of C&G members later 
the same month. 


Background, Page 7 
Lex, Page 24 


They are set to lose as much as 
£180 a week, more than 60 per 
cent of their earnings, if they 
move to 48 hour stoppages. 

Mr Jimmy Knapp, the RMT's 
general secretary, said yesterday 
there were still 10 days left to 
reach a settlement with Railtrack 
before the first consecutive three 
days disruption takes place. 

He continued to insist that 
Railtrack must agree to an 
interim payment for past effi- 
ciency achievements before going 
on to negotiate a restructuring 
package worth between 13 and 26 
per cent on basic rates. 

Employer organisations are 
concerned at the cost of the rail 
conflict for business. The Insti- 
tute of Directors warned yester- 
day it could seriously damage the 
economic recovery and hit 
Britain's reputation as a reliable 
place to do business. 


and putting them in prison”? 

Mr Antonio Di Pietro has led 
the two-year crusade against 
widespread corruption in Italian 
business and politics which 
brought down the previous 
regime and prepared the way for 
Mr Berlusconi to win office in the 
March general election. 

While Mr Di Pietro’s prosecu- 
tion of suspects in the first of the 
so-called Tongentopoli (“Bribes- 
ville") trials has been followed by 
the public on television, ques- 
tions have been raised about the 
magistrates' use of the media and 
the threat of detention to shame 
suspects into confession. 


Blair ends 
campaign 
on pledge 
to reform 
constitution 

By Kevin Brown, 

Political Correspondent 

Mr Tony Blair, the runaway 
favourite to succeed the late 
John Smith as Labour leader, 
committed the party yesterday to 
a sweeping constitutional 
shake-up, including parliamen- 
tary reform, devolution and 
human rights legislation. 

In the last of six speeches 
aimed at the 4£m voters in the 
leadership election, Mr Blair 
promised to deliver “a new con- 
stitutional settlement" in the 
first term a Labour government 

He also sought to exploit con- 
tinuing concerns ahout the pro- 
bity of the Conservative govern- 
ment by pledging that he would 
insist on “the highest standards” 
of honesty and integrity from 
ministers and party officials. 

Mr Blair's comments reflect 
confidence among his advisers 
that he will win by a substantial 
margin when the results are 
announced at a special confer- 
ence in London on Thursday. 

Friends say that Mr Blair has 
already begun to think about 
changes to the opposition front 
bench team, although he has 
decided to to delay a shake-up 
until the autumn. 

Mr John Prescott, the shadow 
employment secretary, is increas- 
ingly confident of victory in the 
race for the deputy leadership, 
which is also being contested by 
Mrs Margaret Beckett 

Mrs Beckett, who was Mr 
Smith’s deputy from 1992 until 
his death in May, told the Finan- 
cial Times in an interview that it 
was “perfectly possible" that she 
might foil to win either of the 
leadership posts. 

1 am used to going into elec- 
tions that I might not win, and 
having to make my case and 
abide by the judgment of the 
electorate," she said. 

Mr Blair said in Cardiff that 
government under both parties 
had become centralised, bureau- 
cratic and indifferent to the fun- 
damental rights of citizens. 

He also sought to raise public 
concern about the impact of 
quangos (quasi autonomous non- 
governmental organisations) by 
linking constitutional issues 
directly to economic prosperity. 

"People care that vast amounts 
of their money is being swal- 
lowed up by quangos, to he spent 
on projects they know nothing 
about, by Tories they have never 
voted for," he said. 

Mr Blair put his full weight 
behind a long list of constitu- 
tional changes, inrfudrng devolu- 
tion for Scotland, Wales and the 
English regions; greater powers 
for local government; abolition of 
the rights of hereditary peers to 
sit in parliament; incor- 
poration into domestic law of the 
European Convention on Human 
Rights; and a Freedom of Infor- 
mation Act 


Interviews, Page 6 


Railtrack plans appeal to staff 
as union steps up strike action 


Italian corruption suspects 


FT WEATHER GUIDE 


Europe today 

High pressure over western Europe will faring 
mainty dry conditions. The Channel area and 
the Benelux countries will be cloudy. Spain 
and Portugal win have thunder showers during 
the day. 

Spain's Mediterranean coast wiH be dry, sunny 
and warm. 

Greece and Italy wiH also be sunny and warm. 
There wiH be strong northerly winds over the 
Aegean Sea Central Europe wUl be mainty 
sunny with some local thunder showers over 
the Balkans and Poland. 

Temperatures in Sweden and Norway wiH fall 
slightly, but Finland will continue warm. 

Five-day forecast 

After sunny and warm conditions, thunder 
storms wiH move from Spain through western 
France towards the Benelux countries and 
Germany. 

The Mediterranean holiday resorts will 
continue sunny and warm with high 
temperatures spreading again over Italy and 
Greece. 

The British Isles will become more unsettled as 
depressions approach early next week. 
Scandinavia will stay warm with some thunder 
showers. 



TODAY’S TEMPERATURES 


Situation at 12 GMT. Temperatures maximum for day. forecasts tty Ubuo Conautt d the ttoharianda 



Maximum 

Bdpng 

tor 

31 

Caracas 

doudy 

28 


CalSha 

Belfast 

Mr 

17 

Cardiff 

far 

21 

Abu Dhabi 

sun 

39 

Belgrade 

sun 

30 

Casablanca 

fair 

29 

Accra 

shower 

28 

Benin 

fab- 

37 

Chicago 

fair 

29 

Alders 

sun 

36 

Bermuda 

shower 

32 

Cologne 

tor 

29 

Arestarttam 

lair 

23 

Bogota 

fab- 

19 

Dakar 

tor 

29 

Athens 

Sun 

32 

Bombay 

rain 

30 

Dales 

tor 

35 

Atlanta 

(hund 

33 

Brussels 

tab 

37 

Delhi 

shower 

35 

B. Aires 

tor 

14 

Budapest 

fab- 

31 

Dubai 

sun 

40 

B.ham 

tel r 

22 

G.hegan 

tor 

32 

Dublin 

tor 

18 

Bangkok 

shower 

32 

Cain 

sun 

W 

Dubrovnik 

sun 

30 

Barcelona 

sun 

30 

Cape Town 

sun 

17 

Edinburgh 

doudy 

19 


Your bonus program. 

__ Lufthansa Miles & More. 

Q) Lufthansa 


Faro 

fair 

28 

Madrid 

thuntj 

35 

Rangoon 

ton 

30 

Frankfurt 

sun 

31 

Majorca 

sin 

34 

Reykjavik 

rein 

13 

Geneva 

sw 

31 

Malta 

sw 

32 

FUo 

tor 

20 

Gfcrato* 

tor 

29 

Manchester 

tor 

20 

Rome 

sun 

as 

Glasgow 

doudy 

19 

Manila 

thund 

31 

S.Freeo 

fair 

22 

Hambug 

shower 

24 

Melbourne 

Shower 

14 

Seoul 

shower 

32 

Helsinki 

fair 

27 

Mexico City 

shower 

21 

Singapore 

shower 

31 

Hong Kong 

thwnd 

31 

Mand 

fair 

32 

Stodthdm 

shower 

28 

Honolulu 

Mr 

32 

Mfan 

sun 

34 

Strasbourg 

sun 

31 

Istanbul 

Mr 

28 

Montreal 

fair 

27 

Sydney 

fair 

18 

Jakarta 

tor 

31 

Moscow 

show* 

28 

Tangier 

fair 

29 

Jersey 

doudy 

20 

Munich 

sun 

28 

Td Aviv 

sun 

31 

Karachi 

shower 

32 

Nairobi 

Mr 

23 

Tokyo 

Mr 

31 

Kuwait 

sun 

45 

Naples 

SUl 

82 

Toronto 

srai 

28 

L. Angeles 

tor 

26 

Nassau 

far 

32 

Vancouver 

fo- 

22 

LasFabnas 

tor 

26 

New York 

SUl 

29 

Venice 

am 

31 

Lima 

doudy 

18 

Nice 

sun 

29 

Vtama 

ft* 

29 

Lisbon 

thund 

27 

Nicosia 

sut 

34 

Warsaw 

tor 

30 

London 

fair 

25 

Odo 

shower 

24 

Washington 

Quid 

32 

Lux-bourg 

tor 

28 

Parts 

sun 

30 

WeUngwn 

shower 

12 

Lyon 

sun 

33 

Perth 

tor 

20 

Winnipeg 

fair 

28 

Madeira 

loir 

24 

Prague 

sun 

27 

Zufch 

fair 

28 


THE LEX COLUMN 


Rebounding with bonds 


The UK equity market has had an 
impressive week, with the FT-SE100 
hides putting on over 100 points. Since 
the trough at the end of June, the 
index has recouped about a third of 
the loss it had suffered from the peak 
in early February. The big questions 
are whether current share prices are 
sustainable and, indeed, whether the 
change in mood will be strong enough 
to earn. - the market back to its previ- 
ous peak. 

The main factor behind the market's 
bounce has been the recovery in Euro- 
pean bond markets. Time and again 
economic statistics have reinforced 
the view that there is so far no sign of 
infla tion. This week's news on UK 
retail prices and wage inflation was 
positive. European markets even took 
in their stride the dollar mini-crisis 
which subsided in mid-week. It was 
possible to argue that, with the dollar 
on a slide, European assets provided a 
safe haven. And, following the depreci- 
ation of sterling against the D-Mark, 
UK assets have started to look particu- 
larly cheap to continental investors. 

If bonds maintain their poise, equi- 
ties should have little problem holding 
current levels. The market could even 
regain its previous peak if corporate 
earnings shoot ahead when the report- 
ing season begins in the autumn. But 
bears see clouds on the horizon. 
Though inflation has not yet reared its 
ugly head, it could just be hiding. 
Moreover, the dollar's recent recovery 
stUl seems fragile. If its downward 
slide resumes. European asset markets 
might have to review their recent 
indifference to what happens on the 
other side of the Atlantic 

Share settlement 

Neither big investment institutions 
nor private shareholders have much to 
fear from the UK stock market's move 
to 10-day rolling settlement on Mon- 
day. The fortnightly account system 
which ended yesterday often 
demanded that bargains were settled 
in less than 10 days. And while inves- 
tors accustomed to using the whole 
account as a period of credit will be 
inconvenienced, that does not seem an 
unbearable price. The transition 
should be smooth so long as brokers 
and shareholders of all sizes have 
their administration up to scratch. 

Yet 10-day settlement is not meant 
to be more than an interim stage. 
Early next year, the settlement period 
wifi be halved. Whether the current 
paper-based system can be compressed 
still further without causing disrupt 


FT-SE Index: 3074,6 (+24.4) 


FT-SE 100 Index 


3.600 



tion is a moot point Many institutions 
fear a sharp increase in the number of 
failed trades and want the same stock 
borrowing privileges as market- 
makers enjoy as a safeguard. 

Life will be harder for private inves- 
tors. The extended settlement periods 
now being offered by some private cli- 
ent stockbrokers are helpfuL But it is 
difficult to believe these will endure. 
Most private investors will find that 
opening a nominee account and depos- 
iting cash with a broker are the only 
practiced answers to five-day settle- 
ment Other than the obvious issue of 
cost, it would be a sham e if nominee 
accounts spoiled the direct link 
between companies and small share- 
holders. One can only hope that mar- 
ket forces will bring about nominee 
services as stick and efficient as the 
promised system of settlement 

Lloyds/C&G 

Any disappointment the market felt 
about the High Court judgment block- 
ing Lloyds' bid for Cheltenham & 
Gloucester has proved short lived. 
C&G's confident assertion that it could 
find an alternative means of consu- 
mating its takeover cheered investors 
yesterday. But the 4 per cent rise in 
Lloyds' shares seemed a touch exces- 
sive given the market had long 
assumed the deal would succeed. 
HSBC's strong showing and a general 
bounce In the banking sector may 
have been the more influential cause 
of Lloyds' buoyancy. 

As yet, there is little clue how C&G 
will proceed. But the building society 
did stop opening new accounts with 
voting rights soon after the judgment. 
One way to get around the judgment 


would simply be to wait until all mem- 
bers qualified to vote by having their 
accounts open for two years. But the 
talk of concluding a deal by mid- 
August suggests that C&G may have 
devised a more elegant solution. 

The details of the deal will make 
tittle difference -to Lloyds. It has put 
£l.8bn on the table and is only likely 
to change the form, not the substance, 
of its offer, tt would perhaps be better 
to defer payments as long as possible 
rather than paying the frill amount 
up-front But either way, the differ- 
ences are marginal. Other banks with 
designs on building societies will be 
keen to learn C&G's secret formula. 
But whether it makes sense for them 
to follow suit is debatable. The 
remaining targets seem less attractive 
than C&G. The take-out prices are 
likely to be steeper. 

BT 

BT may retreat into its bunker fol- 
lowing a survey showing that several 
of its largest shareholders have a poor 
opinion of its top management The 
company may seek to comfort itself 
with the notion that the survey, con- 
ducted by its stockbroker Cazenove. 
was clumsily handled and so not a 
true reflection of opinion. Alterna- 
tively, it could lam bast some share- 
holders' comments for being flippant 
or criticise those interviewed who did 
not know the names of top managers 
as ignorant 

But such a reaction to the survey, 
which was conducted over the past 
fortnight would be a mistake. BT has 
long suffered from a fortress mental- 
ity , in part because it is still making 
the long journey from state-owned 
monopoly to private-sector corpora- 
tion. Indeed, one point made by some 
shareholders is that BT is aloof. The 
right reaction would be to lower Its 
drawbridge and make a determined 
effort to address investors' concerns. 

Although the survey's results have 
not been published, those who took 
part have spoken about their views. 
One message is that some are con- 
fused over who is running the com- 
pany. Sir Iain Vallance Is both chair , 
man and chief executive, but Mr 
Michael Hepher, group managing 
director, is seen by some investors as 
effectively the chief executive. BT to 
such a huge organisation, that it wifi 
never be possible to say that a single 
person runs it But its vastness is alto , 
a reason for allocating responsibilities 
as clearly as possible. If investors are 
confused, BT must enlighten them. 



LOEWE 

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X 







Weekend FT 


SECTION II Weekend July 16/July 17 1994 


Confessions 

of a 


temporary 

sports 

writer 


Jurek Martin , US Editor, has spent 
a month covering the World Cup. 
The task , he admits , has had 
a ' curiously restorative effect ' 


U nless encased in a 
time capsule, you 
know that the World 
Cup of soccer stages 
its final tomorrow in 
the Rose Bowl in Pasadena, near 
Los Angeles. You will also know 
who it is between (Italy and Brazil), 
how they got there and who their 
star players are. 

You will also have got the impres- 
sion that the whole tournament, 
held for the first time in the US, has 
been quite a hit, on the field and off 
it. All this you will know, even if 
you do not care too much, because 
the World Cup has been Inescapable 
for a month. As much as half the 
population of the world may watch 
Uie final on television, which la 
more than can be said for any other 
event, political, military or cultural, 
though the Apocalypse might get 
good ratings if properly previewed. 

What you cannot know, because 
it has never before been revealed 
other than to a select few, is its 
impact on one person. If all politics 
is local, all sports is personal, so 
here is a confession. 1 like sports. I 
watch quite a lot of them and play 
quite a few of them, with degrees of 
competence ranging from the sub- 
par (sadly not in the golfing sense) 
to the sub-human. But I know an 
oshi-dashi when I see one; I recog- 
nise when the in-field fly rule 
applies: and I have a well-thumbed 
collection of the very best sports 
writing from Lardner through 
Angell to Boswell 
But soccer has never been kind to 
me. at least not since I was 10 and 
the second highest goalscorer on 
the RGS Worcester prep school 
team (whatever happened to Barry 
Dinsdale?). It has given me a broken 


nose and a metal pin which even 
now runs through the medial epi- 
condyle of my left elbow, an impedi- 
ment to the promising career of a 
slow bowler. For this and other 
metaphysical reasons I have not 
kicked a ball in anger or design for 
30 years. 

Soccer had also begun to bore. 
The English game seemed brutal 
and the international game, as in 
the last World Cup, tactically ster- 
ile. The English s tadiums were Vic- 
torian, the crowds ugly and the 
edge of partisanship, local and 
national, unpleasant 

I found I did not care who won 
the FA Cup, the League Cup or the 
Nissan Chocolate Coloured Peanut 
Cup. I once saw Gazza in the flesh - 
he was played off the Highbury field 
in London in an under-21 interna- 
tional by someone called Cantona 
but compensated by head-butting 
another Frenchman - and could not 
understand what all the fuss was 
about 

So my heart did not initially soar 
like a hawk when it was suggested 
by the power-that-be that because I 
was known to have sporting inter- 
ests, and because the World Cup 
was coming my way, I might like to 
take it on. It did not exactly sink 
like a lead waistcoat, either, 
because a break from trade wars 
and -gates" beyond number had its 
charms, but the mental jury was 
still out. 

For a start, if you are going to 
cover anything, from goldfish rac- 
ing to the White House, homework 
is necessary, which is not easy to do 
in a country where soccer has not 
necessarily outdrawn goldfish rac- 
ing since Pel§ retired. Of course, the 
game is played extensively, but not 



in places easily accessible without a 
guide to suburban schools and pub- 
lic parks and not at an instructive 
level unless "swarm soccer” (the 
term needs no explanation) by six- 
year-old girls is the wave of the 
future. 

Most countries are very insular 
about their sporting passions, none 
more so than the US, though Sports 
Illustrated, the bible, did devote a 
page and a picture to Brian Lara a 
few weeks back. Baseball has a 
"World Series", but only teams 
from North America are eligible 
and only two years ago did a Cana- 
dian side actually win it (directly 
leading to the obliteration of the 
conservative government in Ott- 
awa). 

There is no serious international 
competition for the US In American 
football and none in basketball, 
either. When the US hoops team 
lost to the Soviet Union in the 1572 


Olympics, a hot war nearly ensued, 
only resolved in the Gorbachev era 
when the best US professionals 
were allowed to win gold medals by 
beating up teams from Senegal, or 
possibly the Ivory Coast 

So, as seen from the western side 
of the Atlantic in the months pre- 
ceding the Cup, the earnestness of 
the US organisational build-up was 
not much help. Apart from Diego 
Maradona, Lothar Matthaus and 
Roberto Baggio - all dutifully pro- 
filed - the players seemed indistin- 
guishable, with the exception of the 
US team, which was profiled to 
death. 

In spite of this, the US did OK, 
making the second round and only 
losing by a goal to BraziL But any 
sane person's appetite for profiles 
over the last month has been sated 
by those that accompanied the mur- 
der charges against O.J. Simpson, 
the former gridiron great, all of 


which tended to prove that the 
qualities that make a fine football 
player do not necessarily relate, 
whatever the Image-makers may try 
on, to real life. So what if Baggio is 
a Buddhist? 

There were, of course, engaging 
diversions. But the technical chal- 
lenges of growing live grass in the 
enclosed Superdome in Pontiac, 
Michigan, can only have seriously 
fascinated ardent horticutturalists. 
Equally, there was an instant surge 
in the demand for computer and 
graphic designers able to depict 
how to trap, head and pass a ball 
but that I knew already from dim 
memory. 

Occasional controversy bubbled 
out of the organisation. Journalists 
were asked to put down a $500 
deposit for accreditation, which 
seemed un-American. Worse, we 
were asked to agree to security 
checks into our backgrounds, which 


seemed illegal This requirement 
was only withdrawn in the face of 
tiie sort of US media opposition that 
could have resulted in no domestic 
coverage at all 

Then, although the dreaded Brit- 
ish fans were not coming, fear of 
Norwegians rendered crazy by rein- 
deer meat past its sell-by date and 
of Koreans high on kimchee 
prompted the announcement that 
security fences would be placed 
around the perimeter of several 
venues, including RFK Stadium in 
Washington. Local opinion was out- 
raged. Why not heads on stakes ora 
moat filled with piranhas, wrote 
Tony Kombeiser, the Washington 
Post's very funny columnist. 

Meanwhile, in the real world of 
the baseball diamond. Ripken was 
closing in on Gehrig's record for 
durability. Griffey was on a home- 
run pace to beat Maris, and there 
were rumours, finally confirmed, 


that the great Valenzuela would 
again be lured out of his Mexican 
fastness. No. life did not look prom- 
ising for me. the World Cup or the 
power-that-be. 

Then it started. It began just a 
month ago in Soldier Field, Chi- 
cago. with Germany playing 
Bolivia, an unpromising match-up if 
ever there was one, but it was not 
half bad. Then it escalated - two, 
three, four games a day. a cornuco- 
pia. Games could be caught in the 
flesh, on the box, in English and 
Spanish (much better in Spanish, 
no language lessons necessary - the 
average length of commentator 
Andreas Cantor's shout of 
"Goal!!!! 1 .!!" was computed at 6.7 sec- 
onds). 

There was drama, there was 
bathos, high play and low play, 
upsets and routs, Maradona and the 


Continued on Page XII 


CONTENTS 


Finance & Family : Where to get 
the best mortgage deal III 


How to Spend It: Putting yourself in 
the shade IX 


Travel’. The Silk Road through 
Uzbekistan 


XI 


Fashion : Where to get trendy 
menswear tailor-made VIII 


Property: Homes within putting 
distance of the golf course XV 


Books : Jackie Wullschlager on 
Robert Louis Stevenson's letters XVIII 



From Madrid to Galicia and from 
haute cuisine to tapas. FT food and 
drink writers visit Spam X 


Arts 

Books 

BrMgn. Cbesa, Crossword 
Fashion 

Rntmco A aw Fomfly 
Food & Drink 
QMtnlng 
How ToSpond It 
Lunch with tho FT 
Market* 

Jam** Mergon 

Motoring 

Propony 

Small sinlnoH 

Sport 

Troual 

TV & Radio 


XK-XX 

XVTH 

XXI 

vin 

IB- VI 
X 

xw 

K 

XVII 

It 
XVH 
XH 
XV 
VS 
xii, xm 
xi 
XXI 


Long View/Barry Riley 

Jumping Jupiter! 


For the week of the end 
of the world. Freddie 
seemed surprisingly 
cheerful. "My coffee 
futures positions are up 
200 per cent this year," 
he boasted. "Never 
thought I would enjoy a 
bracing hard frost quite 
so much!" I should have 
known better than to accept an invita- 
tion to the annual Candlestick Charts 
Convention. 

Scarcely had 1 emerged blinking from 
the session on combining candlesticks 
with stochastic oscillators than inevita- 
bly (it seemed) Fringe Freddie was 
there with the rasping voice, the gleam 
in the eyes and the overwhelming 
enthusiasm for the latest esoteric 
investment pursuit I was trapped. If 
only I bad a mobile pbone tbat might 
conveniently ring . . ■ 

“Stop writing all that rubbish about 
paper securities. Fill your boots with 
commodities, dear boy," he thundered. 
“Bonds are fraudulent, equities are 



you, when the fragments of 
it us we may be dead too, like 
saurs 65m years ago when the 
me here. But just think what 
rs with the sun blotted out 
j to the prices of softs. Worst 
nario, of course - but not 
to the markets at alL" Freddie 
lapptiy at the prospect 
lably, I replied, he was refer- 
he immin ent collision oT frag- 
the Shoemaker-Levy 9 comet 
planet Jupiter. More than 

■ the broken-up comet would 
i the planet at a speed of 60km 

over a period of a few days. 
Ms weekend. But surely srien- 
e predicting that the impacts 
unobservable from the Earth, 
uncomfortable they might be 
aliens who happened to be 
I on the wrong part of Jupiter, 
had 1 said this, than 1 realised 
tnply providing raw material 

■ Freddie's conspiracy theory 
. “But what are the scientists 

fVio world's leaders? 


Freddie said. “What we see in the con- 
ventional media is a typical cover-up to 
prevent a global panic. Fact is, there’s a 
50-60 chance that the outer layers of 
Jupiter will be blown off to create a 
dust cloud tbat could reach as far as 
the Earth's orbit, cutting sunlight lev- 
els by half for up to two years, and 
incidentally disrupting other cometary 
paths. It's all been set out in the Astro- 
financial Letter, but of coarse the estab- 
lishment papers have been told to keep 
quiet. So buy agricultural commodities, 
and while you're about it, short suntan 
cream shares too." 

There was no stopping Freddie now. 
“Haven’t you wondered why they did 
nothing at the global summit in Naples 
last weekend about the collapse of the 
dollar? The answer's simple, they knew 
they didn't need to. When Jupiter 
blows, the big agricultural producers 
like the US will hold the rest of the 
world to ransom. The yen will be dead 
meat" 

H old on. I said impatiently. 

Freddie should know he has 
a tendency for feds and 
fashions to get the better of 
him Last time we met he was heavily 
into gold at if I remembered correctly, 
about $380 an ounce. But it had gone 
nowhere. Whatever happened to his 
theories about inflation and monetary 
collapse? 

"Only a matter of time,” said Freddie. 
“The gold market has been rigged. 
Haven’t you also wondered why the 
bullion price has been so unnaturally 
steady recently? There's been a secret 
deal between the Americans and the 
Saudis: if the Saudis dump gold and 
help to hold the price down the 
Americans will push the crude oil price 
up by buying for their strategic reserve. 
Neat, ehr But this was just another 
wild, unproven idea, I protested. There 
had been so many in the past What 
was it he had said on a previous meet- 
ing about the eruption of Mount Pina- 
tubo and the cloud of dust which would 
cool the globe? But the temperature in 
Loudon had hit 92* this week. Now. it 
appeared, he was importing a cloud of 


dust from Jupiter to replace the unrelia- 
ble terrestrial volcanic variety. 

“Jupiter Is the icing on the cake, old 
boy,” he rasped. “It’s all happening to 
commodities already. It only tafcep a 
cold front or two over Minas Gerais 
state in southern Brazil to send the 
coffee price up threefold. Western con- 
sumers have become complacent about 
commodity prices but they're on a 
knife-edge. Coffee is still only half the 
price it reached in the 1570s. The Third 
World is going to hit back.” 

Don’t bet on it, I said. The coffee 
bubble was a completely artificial cre- 
ation of the US commodity and hedge 
funds which had created a one-way 
market. They were in league with 
greedy Brazilian farmers amd mer- 
chants phoning in uncorroborated scare 
stories of killer frosts. 

In any case, only half the Minas Ger- 
ais crop could be affected at maxiimim. 
That was only 5 per cent of the global 
coffee crop. How could tbat possibly 
justify a trebled price? Nestto and Max- 
well House would not fell for such a 
basic trick. In any case, just wait until 
the hedge funds started to rotate into 
something else. 

F reddie looked at me pityingly. 
“This is just the start of the 
dash into real assets." he said. 
"No one’s woken up to just 
what the politicians are doing. The Ger- 
mans have given up controlling the 
money supply. Their M3 is rising at IS 
per cent a year and the Bundesbank is 
just laughing. Meanwhile the 
Americans are hell-bent on devaluing 
the dollar to sustain the US economy 
tong enough to get Clinton re-elected in 
1996. Gullible investors are being 
stuffed with trillions in global bonds 
which the politicians plan to repay in 
Micky Mouse money. Td rather own 
Euro Disney shares, myself.” 

Er, fascinating stuff, I said unconvin- 
cingly, but it was time for the presenta- 
tion on candlesticks and Elliott Waves, 
Perhaps we could meet later for coffee? 

T can’t afford to drink the stuff any 
more," said Freddie. “Much too expen- 
sive. Tve switched to tea instead." 


H 

s 

fa 

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fa 

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tl 

fa 

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V 






H WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


MARKETS 


London 


Uptumfooto even better to German Investors 


F oreigners 
return 
in force 

Roderick Oram 


B uy in July and 
hope they stay 
high was the 
equity motto of the 
week, emboldening 
a nervous market and turning 
an old aphorism on its head. 
Encouraged by rallying 
European bond markets, inves- 
tors, particularly foreigners, 
returned in force to London 
equities for the first time since 
February. The FT-SE 100 index 
gained 112.4 points, or IS per 
cent, on the week to dose at 
3,074^. 

Playing by the old rule of sell 
in May mid stay away cautious 
investors had captured a good 
chunk of each year's gains 
over the past decade except 
last year. 

Last year the market rise 23 
per cent hum its July trough 
to its December peak. This 
year, anyone rash enough to 
sell in May would be in just as 
much trouble. They would 
have crystallised a loss of IB 
per cent since the market 
peaked in February if their 
portfolios tracked the FT-SE 
100 index. They would also be 


missing out on the recovery 
that appears to be underway. 

The trigger was a switch by 
global investors out of dollar 
bonds into European bonds. 
They were seeking some haven 
from the dollar which contin- 
ued to fall after the Group of 
Seven summit last weekend 
failed to offer it support 

Gilts had a particularly good 
rally. They rose six days in a 
row up to Thursday's close, 
their longest continuous 
improvement since their rout 
had begun in February. The 
run stalled yesterday, however, 
when the Bank of England 
announced it would sell long- 
dated gills at its next auction. 
This would appear to signal 
that the authorities believe 
yields win fall no Anther, hav- 
ing reached a level appropriate 
to economic Mwititinrw. 

In spite of yesterday's hio* 
cup, optimism is running high 
in bond markets. “False dawns 
have been seen regularly but 
this rally has a more positive 
feel," says the bond team at 
Nat West Capital Markets. 
“Although still regarded with 



Sa>wnco mte 6M u i 

suspicion, the much vaunted 
decoupling between US and 
European markets has been 
seen.” 

The optimism was reinforced 
by this week’s UK economic 
data. June’s headline annnal 
inflation rate was unchanged 
at 2.6 per cent and. minus 
mortgages, it slipped to 2.4 per 
cent from 25 per. cent in May. 
Unemployment fell in June for 
the fifth consecutive month 
and manufacturing employ- 
ment rose for the seventh time 
in 12 months. Construction 
orders in May fait a four-year 
high. 

Spurred by the gilts rally 
and the economic outlook, 
equities enjoyed four strong 
sessions through the week 
with the Footsie index ptfm'ng 
more than 40 points two days 
in a row. The keenest buying 
appeared to come, however, 
from foreign rather than 
domestic investors. One Lon- 


HIGHLIGHTS OF THE WEEK 


Price 

/day 

Change 
on week 

1994 

High 

1994 

Low 


FT-SE 100 Index 

3074.8 

+112-4 

3520.3 

2876.6 

Overseas fund buying 

FT-SE Mid 250 Index 

3551 a 

+98.7 

41528 

3363.4 

Growth stocks bought 

BAA 

955 

+34 

1083 

880 

Bumper traffic fig for June 

BP 

400 

+15 

414ft 

340 

OH price tops $18 a barrel 

British Steel 

157 

+11 ft 

162 

121ft 

Profit expectations upgraded 

Carton Comma 

884 

+40 

1047 

520 

Advertising spend forecasts up 

GKN 

620 

+32 

632 

510ft 

Broker's nBcomrnendatfons 

Great Unfmnml 

574 

+21 

653 

540ft 

Share buy-back hope 

Johnson MaUhey 

574 

+83 

628 

488 

Confident agm statement 

Low (Wftn) 

253 

+84 

253 

138 

Counter bM anticipation 

Pearson 

638 

+55 

735 

570 

Channel Five news 

Peel Hbfea 

289 

-23 

399 

298 

High Court ruing overshadows 

Rank Organisation 

402 

+40 

447ft 

355ft 

Better than expected figures 

Sedgwick 

162 

-8 

222 

157 

Credit Lyonnais downgrade 

WOta Cotroon 

135 

-7 

245 

133 

Seder of 2ft stake 


don brokerage house said an 
unusually high proportion of 
its commissions this week had 
come from the Continent. 

British institutions could 
still be cautious for several rea- 
sons: they have remained well 
invested in equities through 
the first-half slide; they are 
still feeling nervous about 
finan cial markets after suffer- 
ing hefty bond losses; index- 
linked gilts are still offering a 
high return relative to divi- 
dend yields. These investors 
are unlikely to return with 
conviction to equities until this 
key relationship tilts in equi- 
ties’ favour and markets show 
some durable stability. 

Continental investors have a 
different perspective, however, 
argues Ian Harnett, chief econ- 
omist and strategist at Soctete 
Generate Strauss Turnbull. 
Valuations of the UK market 
look attractive relative to their 
home markets. The prospective 
price/earnings multiple for the 
UK market is, for example, the 
lowest of any major market; 
the yield relative between gilts 
and equities is well below its 
five-year average, unlike in the 
US or other European markets; 
the outlook for UK growth and 
inflation is positive; sterling's 
recent fall against the DM and 
rise against the dollar will 
increase the competitiveness of 
UK exports while helping to 
keep down imported inflation. 

German investors, in particu- 
lar, appear to have been big 
buyers this past week. All the 
positive factors about UK equi- 
ties are true for them, with the 
currency factor playing a big 
role. Many had exited from UK 
equities in February when the 
market and DM/sterling 
exchange rate peaked. They 
had liquidated their UK portfo- 
lios when the pound was dose 


to DM250. Now the pound is 
down to DM2.40, the Footise 
index looks as attractive to 
them as it would to UK institu- 
tions at 2,700, Barnett argues. 

A keenly-priced cross-border 
deal was also one of the main 
stories of the week on the cor- 
porate scene. Tesco made an 
agreed £20Qm bid for William 
Low, the Scottish supermarket 
chain. The purchase would 
boost the En glish chain’s share 
of the Scottish market from 7.1 
per cent and fourth place to 
13.7 per cent and second place. 
J Sains bury, the leading CJK 
chain, could spoil the deal with 
a counter-hid but such a move 
would be uncharacteristic. Low 
became vulnerable to a take- 
over after discount chains 
began to expose the high over- 
head it was frying to carry on 
a narrow geographic base. 

While the Tesco bid was 
driven by commercial logic, it 
could also indicate that the 
stock market is again offering 
attractive enough values for a 
resumption of bids. While the 
stock market rallied strongly 
from last July to this February, 
many acquisitive companies 
complained valuations were 
too rich to make takeovers 
practical 

One conglomerateur who 
could boast of success this 
week was Greg Hutchings, 
head of Tomkins. His October 
1992 purchase of Rank Ho vis 
McDougall, the baker and 
foods group, was much, critic- 
ised by the market but in the 
year to April results reported 
tins week. RHM contributed at 
least four percentage points to 
the 14 per cent rise in earnings 
per share. The only thing 
Hutchings laments is that 
investors are still reluctant to 
buy Tomkins shares in the 
hopes they will stay high. 


Senous Money 

First the rethink, 
then the squabble 

Gillian O’Connor, personal finance editor 


C heltenham & 
Gloucester savers 
and borrowers have 
another nail-biting 
month ahead of them. The soci- 
ety has abandoned its original 
scheme for dividing up Lloyds 
Bank's £15bn. The scheme was 
vetoed in the High Court in 
June, and C&G has decided 
not to appeal. 

It is, however, confident that 
it can produce a new scheme 
which will be acceptable to 
members and lawyers alike. 
Details and a timetable are 
expected in mid August. (See 
Section I of today's paper.) 

All those scheduled origi- 
nally to benefit from the divi- 
sion of the spoils should keep 
their fingers crossed. Those 
who have most to hope and 
least to fear are the savers 
with qualifying accounts who 
have held them for more than 
two years. 

Those with cause to worry 
are savers with less than two 
yearn' service and borrowers. 
Their strength is that they 
account for roughly a quarter 
of the votes, so C&G is eager 
to have them on-side. But even 
if it would like to find other 
ways of getting money into 
their pockets, its options are 
limited - particularly for 
rewarding borrowers. (See Sec- 
tion I for some possibilities.) 

Whatever the new plan, the 
danger is of a wrangle between 
voting members with different 
interests; this could scupper 
the plan. As in scone Victorian 
melodrama, both legitimate 
heirs and illegitimate ones are 
waiting to see who gets what 
from the overall estate. Once 
C&G’s last will and testament 
is known, the squabble can 
begin. 

OOO 

Anyone unaware that rolling 
settlement starts on Monday 
must be blind, deaf and dumb. 
Advent calenders pop out of 
every financial newspaper. But 
rather less has been heard 
about margin trading - buying 
shares on borrowed money. 


with only a small down-pay- 
ment. 

There are two reasons why it 
becomes an issue automati- 
cally after the death of the old 
account system, which netted 
out all deals within a two week 
account period. 

First, the average period 
between dealing and paying 
will be shorter. So, many inves- 
tors may find it hard to settle 
on time. 

Second, account traders - 
speculators who buy and sell 
within the account - will have 
to find a new game. Under the 
old system, they hoped to 
make money without putting 
any up in the first place. 

The obvious alternatives 
under the new system are 
either switching to fotures and 
options, or trading equities on 
margin. But both types of 
investment are relatively high- 
risk because they involve 
“gearing" - evocatively known 
as “leverage" in the US. where 
both are common. 

You put up only a small per- 
centage of the value of the deal 
initially (the margin), and hope 
to make a profit before the 
date on which frill settlement 
is due. 

Like someone buying a 
house with a mortgage, you 
benefit disproportionately if 
the price rises and suffer dis- 
proportionately if it Calls. 

British investors wanting to 
trade on margin may find the 
present situation confusing, 
however. For, although the 
Securities and Futures Author- 
ity has rules designed to pro- 
tect investors, there are no 
rules telling brokers how to 
handle the commercial side of 

mar gin t rading 

For example: what interest 
rate to charge; what percent- 
age margin to demand; what 
securities to accept as collat- 
eral; how to value the collat- 
eral for margin purposes; and 
what to do if a client breaches 
margin requirements. 

Some brokers are avoiding 
the problem by suggesting that 
account traders simply roll 
over a deal from one settle- 


ment day to the next. The offi- 
cial tine seems to be teat a 
margin of around 70 per cent 
would normally be about right 

One of the more aggressive 
brokers is offering minimum 
margins of 30 per cent already. 
Others are still dithering at the 
starting post. A bit of a good 
British bungle, what? 

□ cm 

If you wont a good example of 
gearing at work, look no An- 
ther than the coffee market. 
The price has moved from 
under $1,200 a tonne to mom 
than $4,000 this year. Most of 
the rise has occurred since late 
May because frosts have dam- 
aged the crop in Brazil 

This is the kind of market 
about which commodity specu- 
lators dream. In their dreams 
they are, of course, always on 
the right side of the trade. In 
real life, though, not everyone 
can be on the right side of a 
trade. Here is what might have 
happened to a couple of specu- 
lators. 

First, the background- The 
price reached a temporary 
peak of $2,430 a tonne on May 
24, fell back to $1,875 on May 27 
- just three days later - and 
then began the long climb up 
to $4,000. 

On May 24, the value of one 
futures contract (five tonnes) 
would have been $12,150. A typ- 
ical margin would have been 
around $2,500. roughly 20 per 
cent 

Anyone who sold on May 24 
and closed out the contract on 
May 27 would have made a 
profit of $2,775. So, within four 
days, he would have made a 
profit of more than 100 per cent 
on his actual investment Any- 
one who had bought at the top 
and sold at the bottom would 
have made a similar loss over 
the same few days. 

Now assume both our specu- 
lators had stuck with their 
original investment until this 
week. The bull would have 
made a profit of $8,275, the 
bear a similar loss. Gearing is 
a double-edged machete. 


AT A GLANCE 


Finance and the Family Index 

Best mortgage buys — 111 

Rolling Settlement/ Directors' dealings/ Week Ahead IV 

Australian stock™ arket/ Pensioners bond V 

Tax traps / The Professionals / Highest Rates . VI 

Q &A Briefcase VH 


UK lOyr gat yield 

Percent 


British Landf 

Share price foao c e ) 

500 — — 



boost for UK 
government bonds 

In sphe of a slight set-back in late trading yesterday, UK 
government bonds made strong gains this week as a more 
positive mood returned to European government bond markets. 
The yield on the 10- year benchmark gift fall back by about ft 
percentage point as prices rose by about three points. 

During the week, the weakness of the US dollar encouraged 
some investors to shift out of US Treasuries Into European 
bonds. Gilts were also bolstered by data pointing to steady UK 
economic growth with low inflation. 

The Bank ol England's successful sale of three new tranches of 
existing gats helped market confidence. Its next auction, on July 
19, wHI be of medium- to long-dated conventional gills. 

Soros sells British Land stake 

George Soros, the International financier, has sold the majority of 
his Quantum Fund stoke in British Land for a 35 per cent profit, 
and has also disposed of the fund’s shares in Berkeley Group, 
the Surrey-based housebuilder. Soros's entry Into UK property 
was the trigger to last year’s dramatic surge in property shares. 

C&G will not appeal 

Cheltenham & Gloucester building society has derided not to 
appeal against the recent High Court veto of the original plan to 
distribute the Cl.Sbn offered by Lloyds bank, which wants to 
take over the society. It is confident that it can make an 
alternative proposal which will conform with legal restrictions on 
which C&G customers can receive sweeteners. This plan Is 
expected in mid-August 

Goodbye to the account system 

Britain's idiosyncratic system of two-week account periods for 
dealing in equity shares ended yesterday. Under the account 
system all transactions within the account period were 
aggregated and clients settled the net amount due on settlement 
or account day. As from Monday Roiling Settlement takes over. 

Smaller companies sluggish 

Smaller company shares responded sluggishly to ttwgenerai 
recovery in the UK stockmaricet The Hoars Gowett Smaller 
Companies Index (capital grins version) was 0.6 per cent higher 
at 1B1&38 over the week ending July 14. Over the same period 
the FT-SE-A All Share Index has risen 2.6 per cert. But smaller 
companies have still held up better over the yew to dam. 

Next week’s family and finance 

The move to Rolling Settlement has made brokers’ chargee even 
more complex. We explain who is doing mm. 


Wall Street 


A month is a long time in soccer 


C all it the World 
Cop Effect Since 
the week the tour- 
nament kicked off 
on US turf (real, 
not artificial) US shares have 
beat an the slide. Now, with 
the end finally fax sight, stock 
prices have clawed their bade 
to almost exactly their level of 
four weeks ago. For stock mar- 
ket watchers, as for soccer 
tens, a month can seem Uke a 
very long time. 

The Soccer Cycle, to be fair, 
has coincided neatly with 
recent swings in sentiment in 
the US over the outlook for 
interest rates. The fortunes of 
their football teams may have 
influenced some Latin Ameri- 
can countries' financial mar- 
kets, but the sport has not yet 
put down real market-moving 
roots in the US. 

A month ago, the dollar’s 
plunge sparked a bond market 
retreat amid concern that the 
Federal Reserve would raise 
interest rates to defend the 
currency. The dollar may not 
have bounced back - it 
touched a new low against the 
Japanese yen at the start of 
this week - but the relative 
stability In currency markets 
of recent days and some protn- 


M ost quoted com- 
pany chief execu- 
tives believe 
their share prices 
are too low. But when Greg 
Hutchings bemoans Tomkins' 
modest rating he has a point 
The acquisitive conglomer- 
ate's record over the past ten 
years has been exceptional, 
outperforming the pack in both 
good times and bad. 

Since 1984 Tomkins has pro- 
duced average annual growth 
in earnings per share of 36 per 
cent, compared with the UK 
average of just 6 per cent Divi- 
dends have grown three times 
as test Yet its share rating is 
well below the market average. 

In pert Tomkins is a victim 
of changing investor fashions. 
In the buccaneering 19809 the 
dealmakers were king and 
investors were unconcerned if 
all the acquisitions resulted in 
groups with widely disparate 
interests. But these days inves- 
tors are keener on companies 
with a clear business focus and 
many conglomerates have been 
slimming to appeal to the new 
taste. 

Tomkins is more focused 
than some of its peers - con- 
centrating largely on low tech- 


ising economic date have set 
the stage for a modest rally for 
both stocks and bonds. 

The good news for the finan- 
cial markets trickled out dur- 
ing the week. On Tuesday, 
June’s producer price index 
turned ant to be better than 
expected: the index remained 
flat during the month, com- 
pared with a general belief 
that it would rise modestly 
(higher producer prices feed 
through eventually into higher 
consumer prices, which leads 
to inflation and higher inter- 
est rates). 

On Wednesday, the producer 
price index for June matched 
expectations with a small rise, 
while June’s retail sales and 
the latest week’s jobless fig- 
ures, released on Thursday, 
were generally seen as posi- 
tive. 

With this data out of the 
way, there is little on the 
immediate horizon to trouble 
the markets (the Federal 
Reserve's interest rate policy- 
making committee next meets 
in mid-August, but nothing 
seen in recent days is likely to 
force ft to shift its stance). 
And that has allowed US trad- 
ers and investors to focus 
instead on how the US corpo- 


Dow Jones Ind ust r ial Average 

3,900 



3.500* 

Apr 

Source? FT&aphte 


« V 


Jure 


JUl 


1994. 


rate sector Is faring, rather the 
bigger macro-economic pic- 
ture. 

Two corporate events have 
set the tone. First, something 
to set Wall Street’s poise rac- 
ing: the promise of multi- 
billion dollar takeover battle 
(or perhaps even two.) When 
CBS, the television network, 
agreed a takeover of home 
shopping cable TV group QVC 
10 days ago, both companies' 


shares jumped. Last week, a 
rival bidder cable television 
bidder - Comcast - stepped in 
to claim QVC. 

The result: both QVC and 
CBS shares jumped again. 
There could be other bidders 
for QVC. Also , CBS's attempt 
at a deal had revealed its own 
weaknesses (both In its lack of 
cable TV Interests and in man- 
agement.) exposing It as 
another potential takeover 


candidate. CBS shares were 
trading at $312 at midday yes- 
terday, up from $300 earlier in 
the week, while QVC stood at 
$44. 

Meanwhile, the reshaping of 
tire healthcare Industry contin- 
ued apace. Eli Lilly, the drugs 
company, agreed to pay $4bn 
for distribution company PCS, 
while Kendall International, a 
medical supplies company, is 
to be acquired by manufactur- 
ing group Tyco International 
for $L4bn. 

The second big moment of 
the week was the release of 
second-quarter earnings front 
Chrysler. Coining at the very 
beginning of the latest US 
earnings season, the car com- 
pany’s record post-tax profits 
of nearly $Ibn (40 per cent up 
on a year before) appeared to 
confirm analysts’ confident 
predictions for across- 
the-board earnings advances. 
Chrysler’s shares jumped $1% 
on the news, to $51%. though 
by yesterday they had 
retreated to $49% on profit- 
taking. Further strong earn- 
ings reports in the coming 
days could do much to calm 
Wall Street’s frayed nerves of 
recent weeks. 

Will it set the stage, finally, 


Bottom Line 


Why the City is off its food 


nology manufacturing - and 
has a batter recent record than 
the likes of Hanson, BTR and 
Williams. Yet its shares trade 
at a discount even to them. 

The problem is simply that 
the City has gone off its food. 
Britain’s supermarkets are 
waging a bitter price war and 
sharing the pain with their 
suppliers. Food manufacturers 
have seen their margins 
squeezed and watched their 
Share prices sag as a result 

Tomkins walked straight 
into the war zone 18 months 
ago when it paid £990m for 
Ranks Hovis McDougall. Sud- 
denly, half Tomkins* sales 
were in food and it was right in 
the middle of the bloodiest bat- 
tlefield of all - bread. 

The City took Fright. RHM, 
which had been a poor per- 
former for years, was seen as a 
handful for anyone at the best 
of times. But for a company 
with no experience of the food 


TomUns 

Shan* price retettw to the FT-SE-A /Yt-Share frxiea 



1988 

Soiree; FT ©rtphfte 


90 


81 


as 


93 


94 


industry in the middle of a 
price war the deal was 
regarded as extremely risky. 
Even more ala rming . Tomkins 
was paying a price that Han- 
son, Hutchings’ former 
employer, considered over the 
top. 

Mr Hutchings argued that 


Tomkins’ expertise was in 
managing industrial busi- 
nesses not in making particu- 
lar products. After all, it had 
known nothing about hand- 
guns when it bought Smith & 
Wesson or la winnowers when 
it acquired Murray Ohio but 
had made a success ol both. 


But the City was not con- 
vinced and since the RHM deal 
was first announced T omkins 1 
shares have togged the market 
by over a quarter. 

Yet Tomkins has so far deliv- 
ered everything it promised. In 
spite of the bread price war 
and a disappointing perfor- 
mance from the Mr Kipling 
and Cadburys cake operation, 
the RHM businesses contrib- 
uted profits of £l02.5m in the 
year to April Of the healthy 14 
per cent increase in group 
earnings per share more than 4 
points were thanks to the RHM 
acquisition. And with the 
rationalisation programme 
only half completed there 
should be more to come. 

Tomkins' existing businesses 
also performed well helped by 
the buoyant US economy, 
which provides half group prof- 
its, and tentative recovery in 
the UK, which accounts for 
most of the rest 


for the summer rally of vddeh 
(JS investors have beentemn- 
iag? A jump is share jwkes 
daring tee summer is a tradi- 
tional part of the US. invest- 
ment scene. Perhaps not wr- 
prisingly, talk of a summer 
rally, which began in May t has 
resurfaced. The Dow Jones 
industrial average yesterday 
lunchtime had retraced lost 
ground to 3736J98 - just fire 
points shy of where it was 
when tee World Cup got into 
full swing, and more than 100 
points above its low of a fort- 
night ago. 

AD the same conditions are 
in place for shares to stage 
some impressive gains as a 
mouth ago; no immediate fears 
over interest rates, a rebound 
in corporate earnings, and the 
prospect of more Mg takeovers 
in the telecoms, media, finance 
and healthcare sectors. Only, 
as the Soccer Cycle has 
proved, it does not always 
work out that way. 

Richard Waters 

Monday 3702.99 - 06.15 

Tuesday 3702^6 - 0033 

Wednesday 3704-28 + 01.02 

Thursday 8739.25 + 34A7 

Friday 


With last week's figures 
Tomkins provided reassurance 
on another of the City’s wor- 
ries - the impact of the fell in 
the dollar. The company 
revealed that it has hedged 
this year's dollar profits at a 
rate of $1.48, almost 7 per cent 
better than tost year. 

It also displayed a healthy 
balance sheet with net cate of 
£L56m and total shareholders 
funds of almost fSOOm. While 
its poor share rating precludes 
further acquisitions financed 
by share issues that baton 02 
sheet could support a large 
deal funded by debt, though 
not on the scale of RHM. 

Meanwhile analysts believe 
profits could rise from £2S7na 
to £3Q0m this year putting the 
shares at 324p on only 
times earnings. Tomkins 
argues that the pricing pres- 
sure in food is no worse 
has faced for many yeare m vs 
other businesses. But it vsv 
looks unlikely that the share* 
will be re-rated in 
short-term until conditions 
start to improve. When that 
happens the shares will have a 
lot of ground to make up- 


David Wighton 



FINANCIAL XCMES WRFKFNin JULY 16/JULY 17 1994 


WEEKEND FT III 


FINANCE AND THE FAMILY 


Cash in on mortgages 

Lenders are putting out some tasty bait , says Scheherazade Daneshkhu 


P eople often move 
house in spring, but 
recent building society 
lending figures 
showed even fewer did so this 
year than last. As a result, 
societies are waving wads of 
cash in front of potential cus- 
tomers. Depending on your cir- 
cumstances, these COUld matru 
it worth switching to another 
lender - even if you do not 
intend to move house, 

■ Fixed rates 

The table shows a election by 
mortgage broker John. Charcol 
of the better deals on the mar- 
ket. Try to avoid compulsory 
buildings or contents insur- 
ance unless you cannot get a 
better deal elsewhere. All fixed 
rates carry a fee along with 
early redemption penalties; the 
latter make the cost of switch- 
ing to another lender very high 
and deter early capital repay- 
ments. Against these disadvan- 
tages, you can balance the 
security of knowing how much 
payments will be over a given 
period. 

■ Variable rate: discount ' 

The lender gives you a fixed 
discount on its standard vari- 
able rate for a limi ted period. 
The largest discounts are for 
shorter periods. 

Discounts are very attrac- 
tive, so what is the catch? Most 
lenders will charge early 
redemption penalties which 
exceed the discount period, so 
make sure that their standard 
variable rate is competitive. 

Charcol has just launched a 
mortgage combining and 
discount rates. Interest is fixed 
at 6.75 per cent until January 1 
1996. followed by a one percent- 
age point discount on Britan- 
nia’s variable rate until Janu- 
ary 1 2000. The fee Is £299. 

■ Variable: cash-back 
If you need cash, lenders are 
offering it But the Inland Rev- 
enue is still deciding whether 
to tax such payments . In gen- 
eral, you should be abie to save 
more with a discounted rate 
than a cash-back but it 
depends on the amount being 
borrowed and the cash -hack 

limits 

Both discounts and cash- 
backs are so attractive that it 
is worth considering re-mort- 
gaging to get one or the other. 
Ask tbe lender how much it 
would charge you to -re-mort- 


Best Mortgage Buys 


Merest 


Max 

Bfintoun 


Comp. 


rataflAPR) 

UntO 

advance 

Fee 

pane* 

me 

RXED RATES 

Yortisrtra M 

1-90% (2.1%) 

1/5/95 

95% 

£250 

3mntfts 

Yes 

Hnddey & Rugby 

4.74% {43%) 

1/&96 

70% 

£100 

3mths 

None 

Wortham Rock 

459%CL2%) 

1/3/BS 

95% 

£200 


Yea 

Mtance ft Leicester 

599% (7.9*) 

3 years 

80% 

£300 max 

4mth8 

None 

ABanca & Leicester 

8.48% (8 £%) 

5 years 

80% 

£300 max 

fimtta 

None 

TSS 

8£8% (EL5%) 

31/317004 

75% 

£250 

lOrrths 

None 

Capital Hama Loans 

BM% (82%) 

1/3/88 

95% 

£235 

Bmths 

None 

CAPPED RATES 

Bristol £ West CMS* 

6l49% (68%) 

2 year 

90% 

£275 

Smlhs 

None 

Royal Bank of Scotland 

8-88% (9.4%) 

7AOS 

35% 

£295 

5mthe 

Nona 

YAftlABLE/DlSGOUNT RATS 


Merest 

Mac 



Discount 

Comp. 

tender 

retertAPR) 

advance 



until 

me 

Northern Rock 

7.74% (7-8%) 

9a% 

5-25% to 1/8/95=2.49% 

Yea 

Bank of Ireland 

7.60% (7.9%) 

75% 

5-00% for 1 yr =2.60% 

None 

National & Provincial 

7.64% (8.1%) 

95% 

44)0% for 1 yr =3.64% 

Yea 

Leeds 

7.74% (7.9%) 

80% 

1.00% to 1/1/»=&74K 

None 

FIRST TWtE BUYERS RATES 


Merest 

Max 



Discount 

Comp. 


retB/(APfl) 

advance 



unffl 

me 

Monmouthshire 

7.74% (8.2) 

95% 

7.74% tor Smnthso 0% 

V(M 

Northern Rock 

7.74% (7.8) 

90% 

5.25% to 1/8/95=2.49% 

Yes 

Greenwich 

7.84% (34 

95% 

4.69% (or 1 yr=295% 

None 

Yorkshire 

1.9% (2.1) 

95% 


Fixed to 1/5/95 

Yes 

Northern Rock 

4.99% (52) 

95% 


Fixed to 1/3/96 

Yes 

Capital Home Loans 

8.49% (8.2) 

95% 


Fixed to 1/3/99 

None 

Source: John Charool. "Capped rate of 5.75% (B% APR) moHabta in branches but b/c Ins. compulsory: fee £300. 


gage to see if the savings are 
significant. If you have a fixed 
rate, though, the early redemp- 
tion penalties make any 
savings unlikely. 

■ Pep mortgages 
One of the most flexible and 
tax-efficient ways of saving to 
repay the capital on an inter- 
est-wily mortgage is through a 
personal equity plan, which is 
free of income and capital 
gains tax. Some lenders are 
reluctant to grant a Pep mort- 
gage, but another way into one 
Is through a Pep provider. 
Some unit trust groups, includ- 
ing Fidelity and Prolific, have 
made arrangements with lend- 


ers so that tends are available 
if you select one or their Peps. 

Consider investment perfor- 
mance and charges when you 
mak« your choice. 

■ Large borrowers 
High earners may want more 
flexible borrowing facilities 
than available on the high 
street. Merchant bank Klein- 
wort Benson has a mortgage 
management account which 
offers a draw-down facility 
charged at the mortgage rate, 
and a cheque book for mini- 
mum withdrawals of £1,000. 

Interest on money with- 
drawn by cheque is charged at 
1 percentage point above the 


Best cashback buys 


Amount 

Max 

Lender 

% 

W 

Bank of Ireland 

3.5 

7,350 

Halifax 

3.75 

6,000 

Ctielt & Gloucs 

3.0 

6,000 

Newcastle 

5.0 

5,000 

Natnl & Prov 

2.0 

5,000 

Source: John Charcol 


bank’s variable mortgage rate 
of 7 .25 per cent The cash bor- 
rowed, together with the mort- 
gage amount must not exceed 
80 per cent of the value of the 
home and the minimum salary 
requirement Is £35,000. 



T hree months ago, 
fixed-rate loans 
accounted for 80 per 
cent of new mortgage 
business at the Halifax build- 
ing society, which has 19 per 
cent of the UK mortgage mar- 
ket. Today, the figure is 
around 5 per cent While the 

chang e is extr a ordinar y It is 

not hard to explain, unites 
Joanna Slaughter. 

Long-term, fixed-rate mort- 
gages virtually sold them- 


Fixed-rate loans yield to cash-back incentives 


selves earlier this year 
because borrowers were pay- 
ing lees for a fixed-rate loan 
over three or five years than 
they were for a standard vari- 
able rate. But upheavals in the 
money markets have reversed 
this situation. 

The borrower who wants a 
five-year fixed rate now has to 
pay a premium of around 1.5 


percentage points over the 
variable mortgage rate. As a 
result long-term, fixed-rate 
mortgages have all but van- 
ished. 

Instead, cash-back incen- 
tives show every sign of 
becoming the mortgage inno- 
vation of 1991 Dick Spelman, 
Halifax general manager, says: 
"Cash-backs are marginally 


more attractive to lenders 
than discounts.. They are still 
a good deal for the customer.” 

Cash incentives - which are 
calculated as a percentage of 
the mortgage loan - were rela- 
tively modest, initially. But 
building societies are adept at 
playing commercial leapfrog 
and it is now possible to get 
cash-backs of over £7,000. 


More generally, a welcome 
development is that mortgage 
lenders are moving away from 
tying borrowers to an endow- 
ment policy or to a personal 
pension plan and are allowing 
them an unrestricted choice of 
repayment vehicle. Similarly, 
fearer lenders now make their 
own buildings and contents 
insurance a n on-negotiable 


part of a mortgage offer. 

It is still possible to get 100 
per cent advances. These can 
prove a lifeline for house-own- 
ers who need to move but 
remain caught in the negative 
equity trap. The Bank of Scot- 
land and Royal Bank of Scot- 
land provide them and others, 
such as the Household Mort- 
gage Corporation and Skipton 
building society, have 100 per 
cent schemes specifically for 
negative equity victims. 


BES 
hits a 
snag 


T he dangers of prop- 
erty investment are 
highlighted this week 
in a letter received by 
3,900 investors in Johnson 
Fry’s SCAT (Smaller Company 
Assured Tenancy) business 
expansion scheme. 

The BES gave investors gen- 
erous tax breaks for invest- 
ment in private rented accom- 
modation. Johnson Fry was 
the largest BES sponsor, and 
its SCAT scheme carried the 
added attraction of insurance, 
provided by Eagle Star, against 
a foil in the value of the prop- 
erty. 

The investors went into the 
scheme in spring 1969 - just 
before tbe property market col- 
lapsed. Johnson Fry estimates 
that the value of the fund’s 
property has fallen by about 25 
per cent. But Investors were 
covered only for a drop In tbe 
property's cost and not for 
their full Investment, of which 
10 per cent went into expenses. 

Many investors now are keen 
to take the insurance and get 
out, but they cannot do so 
until the properties are all 
sold. The prospectus says dis- 
posals can take place between 
years four and six (1993-1995) 
but the insurance policy docu- 
ment. which the investors, 
would not have seen, gives 
March 1996 as the deadline. 

Investors had to borrow their 
£IQ,0QQ investment to receive 
tax relief of up to 40 per cent. 
Interest on the loans, provided 
by tbe Bank of Scotland has 
been at 2 percentage points 
above base rates - 13 per cent 
at the time - but subject to an 
8.5 per cent minimum. 

Those in a hurry to get out 
will soon be offered an escape 
route to cut their losses with a 
limited offer from Eagle Star of 
about 84p for their shares, leav- 
ing them to make up the short- 
foil on the loan. Others can 
choose to hang on if Johnson 
Fry agrees some sort of claim 
settlement with Eagle Star on 
a basis which will allow any 
future rise in property prices 
to benefit investors. 

S.D. 


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money go when stocks are 
high and interest rates 
are low? 


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FINANCIAL TlMliS WI=.liKUNP_jULYJ60UL.Y 17 1994 


FINANCE AND THE FAMILY 


Investors face hefty 
bills if they pay 
late for shares 


Norma Cohen previews rolling settlement, the 
new dealing system which starts on Monday 


J ust over a year ago, the 
Bank of England 
announced the end of 
the two- and three- week 
account settlement period for 
share deals. Prom Monday, pri- 
vate investors will have to 
come to terms with the brave 
new world of lOday rolling set- 
tlement. 

This means that each deal to 
buy or sell shares will have to 
be settled - either in cash or 
share certificates delivered - 
10 business days later. And 
make no mtotBM about it - 
being late will cost you money. 

Private client stockbroker 
Capel-Cure Myers has taken to 
heart the admonition of securi- 
ties regulators to spell out in 
plain English the additional 
costs investors will incur as a 
result of lateness. 

In a pamphlet called “How to 
Buy and Sell Shares Under 
Rolling Settlement". The firm 
tells clients: “if your money 
does not reach us by the settle- 
ment due date, you will be 


charged interest on the out- 
standing balance, together 
with a £20 administration 
charge." 

Moreover “Interest may be 
charged on all outstanding 
debit balances - for example, 
rights, calls, fees and interest 
It wiQ be calculated on a daily 
basis at UK base rate plus 3 
per cent We will advise you of 
any change in the method of 
calculation." 

Capel-Cure 's brochure might 
be a model of clarity but its 
charges are fairly standard, as 
a quick telephone survey of 
stockbrokers found. 

Killick and Co also will 
charge interest at 3 per coat 
over UK bank base rates, 
although there will be no 
administrative charges. Senior 
partner Paul Killick said that 
as long as the firm had the 
cheque in hand physically on 
settlement date, it would not 
charge interest, even if the 
cheque did not clear until a 
few days later. Killick noted. 


however, that “we are not 
advertising this feet”* the firm 
is keen to encourage its clients 
to pay on time. 

Wise Speke, a Newcastle-based 
broker, will charge clients 
either 4 per cent over UK base 
rates or £10, whichever is the 
greater. Albert E. Sharp, a Bir- 
mingham-based broker, will 
levy clients 3 per cent above 
the base rate charged tor Bank 
of Scotland, where it holds cli- 
ents’ accounts. 

Barclays Stockbrokers, 
meanwhile, has a different 
approach. “If you are late in 
paying, we simply debit your 
account," says Justin 
Urquhart-Stuart, the market- 
ing director. The interest rate 
will depend on the overdraft 
rate you negotiate with your 
branch manager. 

The alternative for many cli- 
ents, as brokers have pointed 
out, is to establish a nominee 
account. This will certainly 
make life easier although it is 
by no means “free". Wise 







24 

Itmnst 1S9* 


Last <33* 
ofdea&ngs 
fti Account £. 


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Ustdny 

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36 ‘J&TT-- 

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You 

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at deoEngs 
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for Account N 


Speke, for instance, will allow 
individual clients to negotiate 
the cost with the account exec- 
utive. Over the past year, the 
firm has seen the number of its 
clients in nominee accounts 
roughly double. 

At Killicks, there is oo 
charge at present for a nomi- 
nee account although the firm 
is considering levying £L20 for 


pai-h dividend collection exer- 
cise. 

At Albert E. Sharp, clients 
who do their own stock selec- 
tion but wish to have a nomi- 
nee will need to have their 
shares organised into a portfo- 
lio. There is a £200 annual fee 
for this and an additional 
charge equal to 0.1 per cent of 
the assets per year. 


Directors’ transactions 

Body Shop’s big deal 


The largest transaction of the 
week was recorded at the Body 
Shop Group. 

Started by Anita Roddick, 
and now run by her and her 
hus band , Gordon, it has seen 
its share price recover 
somewhat over the past 12 
months. 

The couple sold 35m shares 
to fund two projects they have 
underwritten. One is to help 
research into the common cold 
and hay fever, the other a film. 

But the Roddicks remain 
the largest shareholders and. 
even after the sale, they retain 
a stake of more than 25 per 
cent. 

O Field Group supplies 
packaging for a host of brand 
leaders including Cadbury, 
Chanel. McVities and Silk Cut. 

The company came to 
market in July 1933 at 25Gp. 
The share price then rose but 
has fallen hack to its present 
228p. 

Directors in the company 
all held (and still do) 
considerable quantities of 
stock when dealing began last 
year. 

At that time, they undertook 
not to seU any of their shares 
until after releasing the 
company’s first fiill-year 
results. These were announced 
on June 9; the shares were sold 
a month later. 


DIRECTORS’ SHARE TRANSACTIONS IN THBR 
OWN COMPANIES (LISTED & (XSBQ 



No at 

Company Sector 

Shares 

Value directors 

SALES 




Avcscodnc red prtl — Md« 

400,320 


2* 

Body Shop tort RetG 

34500.000 

8.400 

2 

City ol London PR 

60.000 

56 


□union Group - -BCon 

6.000,000 

108 

i a 

FkM Group — PP&P 

504.333 

1,170 

9 

Hanson - - Owl 

120,000 

298 

i 

MoorfleW Estalos Plop 

240.000 

© 

1 

Norttwm Bectric Sec 

8,000 

52 

1 

Osborns & Little HseG 

10,000 

37 

1 

PURCHASES 



— - 

Asda Group FfotF 

22,704 

12 

i 

Setterwars _...RetG 

19,150 

18 

1 

Bristol Scons LXHJ 

10,000 

>3 

i 

BumRafo — Eng 

26,000 

15 

i 

Christie Group -..OmF 

34.000 

19 

l 

Control Techniques E&EE 

43.000 

174 

1 

Cowt Cavendish — Hlth 

10.000 

22 

i 

Courts Consulting — SSer 

143,696 

122 

55 

Dun ion Group BCon 

6.000,000 

108 

i a 

Fleming Overseas 1 nvT 

6.473 

18 

i 

Grays! one — Eng 

182.130 

18 

2 

Gresham Tetecomptng SSer 

30.000 

tt 

1 

Lloyds Chemists JtetG 

20.000 

56 

1 

M & G Groi4> „.-OthF 

27,000 

220 

2 

MacDonald Martin - SW&C 

2,000 

10 

1 A 

Meyer IntemationaL BM&M 

8.000 

33 

1 

Orb Estates Prop 

5,000.000 

50 

1 

Prospect Indistries. Eng 

150.000 

26 

1 

Sunfelgh LSHi 

617,880 

37 

4§ 

TR City of London — InvT 

8.447 

12 

1 

United Biscuits FdMa 

5.626 

18 

1 

Watson & PhiSp RetF 

11232 

41 

1 

VAue Mqxasaod ai COQOe. tBetween directors. § Open offer. TNs Bat cantafes al 


cmct Cl 0 , 000 . tnfeimatlon rdeosod by the Stock Exchango Ally 4-8 1994. 


Sauce: ttrectus Ltd, Tin Inskto Trade. £dinM*sh 


' 



1 


NEW UNTT TRUST LAUNCHES 


IfeMOV (Tricphooe) 


Targe! 

YMd 

% 


as SWap — Ctagss State HP — IMma — Chagas katas PS* - MHmn Sped# offer - 

PB> Schemes MW Anouri Ota brat MU Annual OM kiHL Usenet Mod 
(tad AiH. %%%£%%%£% 


■ Southern Africa fend 

Sine & Prosper (0800 282101) Hit SquSjr growth 0 No Yes &5 15 No 1,000 nfc n/a n/a nfa 07/94-297/34 

The fund wifl also invest in Botswana and Zimbabwe; these are voiatfle markets and S&P advises a maximum 5 per cent holding in a growth portfolio. 


*1 pe ne nw p* port discount on 8ft 2 ports on £3,000 or non* 2 parts ue Ju y 1996 Plough rnantey serins* pin. 


HEW INVESTMENT TRUST LAUNCHES 


Tagets — * 


(Tdepbone) 


Brain 


stew 


Sbe 

fin 


Yield 

% 


W 

our? 


Sntagi Price 


— Outside PS> hate PB> — 

tan hnm H U — * tearil UMbwd ft nU 
HAY tons. Change tad Change 
F C % C * 


OSer Period 


■ MVESCO Japst Discovery 


MVESC0 Asset management (0800 010333) 

Paramra Gordon Japan 


15 n/a No Yes lOOp 95.1p 1,000 1% n/a 

Specialising in Japanese smaller companies, to be rui by manager of fnvesco’s Japan SmaOer Companies unit trust 


n/a 14/7/94-29/7/94 


■ The Kalian Renaissance launch has been postpo n ed. Carnegie International, the aectarMes firm acting as advisers to FondQgest, the 
Italian mutual fund company which was to have ma n a ged the trust, said that it feared shares in the trust wotid move to a large 
discount, ft hopes to launch the trust, which aims to spedaise in smaller comp anies, in the autumn. 


ADVERTIS] 




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'BUIL'DVKS SOClttf I*&*ES e rM‘£*&: ‘FEU&CS 


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The week ahead 


SmithKIine Beecham reports 
six-month results to June 30 on 
Tuesday and analysts are 
expecting pre-tax profits for 
the second quarter of between 
£272m and £282m. But particu- 
lar attention will given to the 
plight of Tagamet, the anti-ul- 
cer drug; this used to be the 
group’s biggest product but its 
patents in the United States 
expired on May 17. 

□ Wellcome, another pharma- 
ceuticals group, reports four- 
month figures to June 30 on 
Thursday. The company is 
changing its year-end from 



PRELIMINARY RESULTS 




Pre-tree 

Earnings* 

DMrionds* 



Year 

profit 

per share 

per team 

Company 

Sector 

to 

teoooi 


(Pi 

W 

AB Engi&Mrfng 

Cfet 

Mar 

338 

(2161 

04 

AH 

(L05 

fUE) 

Aberiorth SpVt 

UTr 

Ant 

271? 

P50 l 3 

047 

(943) 

645 

(W) 

MAnteNw Onm 

InTr 

AW 

893 

(81 9J 

1.74 

(129) 

09 

Pto 

BcrtMurlncta 

Ued 

fe 

2JT10 

P.42H 

1U6 

oia 

86 

tt 

Shoe Group 

BSC 


2.700 L 

fiwoo u 

- 

H 

- 

H 

Break tor Barrier 

LeH 

Mar 

4^30 

t<iQtS 

42 

A3 

087 

H 

Bronugmre Mi 

Eng 

Mar 

7,190 

(7J0OOI 

TO 

(7.7) 

45 

(M) 

BronnaATnsa 

DW 

Apr 

3,770 L 

meoo u 

- 

H 

- 

tt 

BcdmarKP 

SW&C 

N* 

1880 

tiwoe» 

- 

(2228) 

108 

(1019 

Caiorefsfen 

BaGn 

Mar 

203 

(i.Ta? 

02 


- 

tt 

Cray Badnrifc 

ESffi 

AW 


(2 sms 

16 

(I3fl 

225 

(«^ 

OCCookMdgs 

Clist 

Apr 

2^10 

032 u 

38 

P44) 

19 

*ws 

Drew Sofenti&c 

rtih 

Mar 

1.480 L 

H51) 

- 

H 

- 

tt 

Druefc HkJgs 

ess 

M* 

5380 

(4«0» 

S3J 

(48-1) 

108 

dan 

Baetran 

Dot 

May 

4040 

0M 

9JB6 

(*24) 

32 


Bfa # Eurranl 

DW 

Apr 

15W3 

(12JZ0QI 

114 

OILS 

78 

(785) 

rxrater Group 

BIG 

Apr 

1,600 L 

(&200LJ 

- 

H 

085 

m 

OtUotenri Stores 

AeGn 

Mar 

518^00 

(ATSAB) 

342 

Pi -9 

138 

tm? 

Harriet Oroq? 

Two. 

Mar 

4310 

( 3 JXX) 

71.7 

009S9 

48 

(Oto 

Hampaonlnria 

Eng 

Mar 

4230 

P.«t ? 

am 

P96) 

28 


HetaiMdsa 

a*fe 

Apr# 

733 

(1-7S? 

057 

A«? 

28 

cun 

Jacques Vert 

Tod 

Afd 

2JT90 

(1J330) 1146 

M 

45 

PA 

feretaai 

Tod 

Mo 

smo 

(Wict tai2 

(24S5) 

98 

(88) 

Psrr 

Prop 

Mar 

12J300 

{3880) 

7.03 

P8S) 

4825 

(4.125) 

PMlHdgs 

Prop 

Mar 

10200 

P80(? 

8.11 

P.41) 

45 

m 

Prism Leisure 

LeH 

Apr 

l^SO 

(1330| 

142 

0O4) 

4.18 

A27) 

Real Time Control 

SpSr 

Mar 

1390 

m 

132 

*4-9! 

48 

OJ? 

Rafencs Security 

SpSv 

Apr 

826 L 

(i.i m 

- 

P5) 

42 

(4-3 

■■reran 

Tod 

Af* 

1^00 

(1.400 M 

9J3 

H 

25 

(17!? 

SMSs 

Prop 

H* 

31340 

n.«q 

&2 

Pff 

225 

PJ? 

Sacure noHreiwt 

rVa 

Mar 

341 

P.100 u 

320 

H 

- 

tt 

SetocTV 

Med 

Mar 

VBA 

coat 

038 

rtA2) 

- 

tt 

ShleB Diagnostics 


Mari 

180 L 

H 

- 

H 

- 

tt 

Stanley Laten 

La H 

May 

12,400 

(9.1*9 

iao 

025) 

525 

(421) 

Tamarls 

l«h 

Mar 

a 

(5o q 

003 

H 

- 

H 

Tmas (Jaftn} 

HseG 

M* 

1,450 

(1.71(1 

369 

HA 4 ) 

481 

f48) 

Toaridm 

Drin 

Apr 

257,000 

(171j000t 16.12 

032« 

728 

tW5) 

Trttat 

rva 

Mw 

2£30 

(13®? 1223 

am 

nte 

H 

TrtptolUayd 

Eng 

Apr 

2820 L 


• 

(9S 

79 

(73? 

Wood ttotm D) 

Prop 

Apr 

681 

(291 U 

50 

H 

28 

H 

IlffTERM STATEKEMTS 







i 

ntertn 




HriHroar 

Pre-to* profit 

QtVPfKW 

Congmy 

Sector 

to 


5WWJ 


per share (p| 

AG Ban 

FcMo 

Apr 


3 JSS 0 

djstq 

28 

P29 

BH83 SacuriBas 

OtFn 

May 


Z 250 

(i^ii? 

1.7 

Pi? 

CretSS Property 

Prop 

Mar 


98 


P8) 025 

P-85) 

Emerrid &iargy 

on 

Ma- 


2 B 

( 161 ) 

- 

tt 

Loaa 8 Borer 

PP SP 

May 


20,400 

(1430C? 

32 


UIW 

Raft* 

Apr 


1/750 

(B27) 125 

Ml 

Mahem UK tare 

nTr 

Jmt 


13Z38 

(161.42) 

1.7 

(1-7) 

Orem Abroad 

l£H 

Apr 

29^00 

(35930 4 

- 

tt 

FtakOrg 

Lrit 

May 


10300 

^6,100 425 

(403) 

St Modnn ftrip 

Prop 

May 


0980 

(1,101? 

as 

M 

Waaargtarie 

Prop 

New 

W70 L 

t9M 1) 

- 

H 


Ortgues in paerthesas wo lor the 
T>*Jends ati shown net 
«*»pv Stae. ft irati Puts and 
* 9 muff; 


corespancJng pviod) 

. when otawfen tefcawt l 
panes. US Dcta} and Certs, i 10 tnorah 


less, t Nstasstf 
IgmtOnA 


nGHTS ISSUES 


BCE is to rasa &5m *a a 5 - 4 rt^da b» O Sp. 

EaaBxr Group b to rate fiftnm a 1 - 4 rip** wue « 4Qpi 
John Waddhgton K to rates C«m * a 2 - 7 righto tew • 190p. 


OfTERS FOR SALE, PLACtNGS & BrTROOUCTIONS 


Atoon Maad is to «sa E13Sm via a |9aehg oT S37.87V anSnary sftaras « 660pL 
AromaScan b ooming to the marfcri via a Bcttran ol eppx tMm. 

Beak for ta Border b <b idae £3,7Sin via a ghdng & open odar ol 7SPn dures O Sp 
CawnMa Group is b rabe On va a ptong 4 op® ofler erf ZUSm shim * 1«p, 
Ewopaaa Motor Hokfines is to taisaClsimea an opaioffBradSm shoes 8 nap. 
Weal Htans to rafceCI&ar? via a (tea/*} of 7.47m shares 


TAKE-OVER BIDS AND MERGERS 


Conrota 
bid tar 

Value <4 
bid per 
Pare" 

uonet 

pneo” 

Price 

betas 

6W 

value 
ol bU 
Ems~ 

Staler 


Prions in pence luden ottrtwtoe 

reScnd 


Brwiere Props. 

10* 

10 

IS 

3.70 

Slough Cetaiue 

CWttem Radio 

242- 

265 

205 

1680 

CUT 

Davenport Vernon 

167 

156 

113 

3280 

Evans Hatshaw 

Orest Southern 

600* 

E22 

47S 

71.11 

ServioO Cotp tot 

Da Pit. 

239- 

238 

180 

1829 

Service Cotp hit 

Jeesups 

123 Si 

123 

sa 

1201 

BSG 

Unread t 

208 

208 

153 

2525 

McKachnto 

Low (Wm) 

22S- 

253 

16Q 

20080 

Tosco 

NUC t 

159§§ 

168 

159 

113.00 

Britton 

8taar(J-W) 

iiocr§ 

740 

740 

4090 

Hasbro 

Spear (J-W-) 

iooo- 

740 

740 

5200 

Mattel 

Toteeri 

2SS- 

271 

243 

422 

London CXy 

Trans World 

181 

164 

173 

7080 

EMAP 


David S. Sntftti NoCdlnga 


August to December so ana- 
lysts have no comparable fig- 
ure for last year. But sales of 
Zovirax. Welcome’s biggest 
product, have been disappoint- 
ing and analysts will also be 
looking for signs that the sales 
decline in Retrovir, the HIV 
and Aids treatment, could be 
bottoming out 

□ Waste Management Interna- 
tional, the environmental ser- 
vices group, reports second- 
quarter figures on Monday. 
These are expected to show 
continued growth despite the 
impact of the recession in con- 


tinental Europe. Analysts are 
looking for a rise in pre-tax 
profits from £37 m in the same 
period last year to between 
£40m and £44m. There should 
be a good contribution from 
Wessex Waste Management, a 
joint venture with Wessex 
Water. 

□ David S. Smith, the paper, 
packaging and office sup (Hies 
group, is expected to report a 
continued recovery in profits 
when it announces annual fig- 
ures on Wednesday. Although 
first-half profits were down, 
analysts are forecasting a full- 
year. pre-tax figure up from 
£27.1m to between £33m and 
£35 m. But earnings per share 
will show little change, 
reflecting the £90m issue last 
year to pay for office products 
wholesaler Spicers. 


Share price rotative to tlw 
FT-SE-A Alt-Share Index 
130 ■ • 



1691 02 

Soureo: FT Graphrto 


□ First Technology report: 
fell-year results to April » 
Thursday. The group, whfci . 
designs and makes crash dm 
zsies and safety sensors for th ' 
car industry, is expected t ; 
report profits of around £4n_ 
up from £2 34 m. 




RESULTS DUE 

,\ h, ■ 





Dividend W 


' » !! v 

Company 


Amcrrmt 

Lmt year This ye* 



Sector due 

ML 

Final 

MIL 

j 

FKM. DIWQff 






i h ? * 

AIM Group .. . 

Eng 

Tuesday 

1.5 

6.0 

IJ5 

Ilk 

Babeys 

n/a 

Tvwaday 

OS 

18 

05 


Btock Am* Group — ,> 

CXS* 

Friday 

1.0 

18 

05 


Brauvay 

Eng 

Tuesday 

024 

027 

024 


BucfcnaB Group 

Prop 

Tuascby 

• 

- 


^ . 

Coiefax & FOwter 

HseG 

Wednesday 

05 

05 

05 . 


Cret^itoo*s HatinAy — 

HseG 

Tuesday 

Ol 

52 

22 


®>tef 

Text 

Tlwsday 

- 

- 



Eve Group 

BSC 

tifia l .eifieii 

Tiwrcyaiy 

2.7 

73 

30 


Rrat Ttodinatosy 

EhgV 

ITureday 

- 

18 

to 


Goode (tororet 

Tran 

Thursday 

2.16 

325 

22 


Holies Group 

Text 

WMrtesda y 

08 

as 

Ur 


McKay Secures 

Pfnp 

vTocnusjuy 

- 

35 

2.1 


Nobo Creep 

OtSv 

Tuesday 

15 

33 

20 


Oceorrica Group — 

OE 

Wednesday 


- 



Property Trust 

Prop 

Thursday 

% 

- 

" 


SeriBn Gordon tap 

Plop 

Thusday 

05 

1.7 

U) 


SmJBi fDwrid S) HBOgs _ 

PP&P 

Wednesday 

2.75 

725 

275 


Stanelco 

n/a 

Thursday 


- 



Unfeetm Grtap 

,_«nfa 

Monty 

* 

- 

" 


VW Holdings. 

BSC 

Tuesday 

- 

- 

IT 



Victoria CarpM (Mgs __ 


Tuwato/ 


ao 


Baing Tribune LT. 


-Wr 

-Bdn 


-Brin 


BravAiOakMntttlga rtfa 

Brown X Jackson R oGn 

BuOaMoatain GoW Mna Bdn 

CLM hraoranca Rwd Ina 

.Otf=n 


Caatral Motor Aucttons Dw 

Edhtagh Java Trust iVa 

QroonrrW In Co InTr 

QnxjtsM Proprietor Brin 

KM & SnUBi Hktga Eng 


Haldaro Tsdwoloflar . 


IQhroas —nai. 


.Oat 

_n/a 


-£dn 


Friday 

Wednesday 

WMiesday 

Monday 

TDusdW 

Wednesday 

llaasday 

Tuesday 

Wednesday 
Thuraday 
Friday 
Wednesday 
U*jratby 
Thursday 
Monday 


1.7 


<S 


14) 

2.15 


3J 


2.1 

Z 0 


4.1 

4A 


-rria 


Lasard SmaBar EquMea . 

UdoQoUMM 

LesBa Wtaa Grp Test 


-E»ln 


MLLabonMriea . 


. HBh 


Hwr & Mart Extra Inc Mr 

Mw 4 Meet Trust Mr 

Scatttsh American bw InTr 


SeiecSsa Assets Trust . 


OmMil d to a B sa rt i nsr . 


-MTV 

.Pfirin 


9t Helena Gold Mtoee 

E>dn 

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Sycamore Heldtage 

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Hotel tarid Mbwa _ 


Waste Mmgmwt hp _ 

OlSv 

WMtehaaK Mtoee 


Yaoroon Inv Tut _ 

~ -InTr 


Tuesday 

Wednesday 

Monday 

Monday 

Tuesday 

Thusday 

Wednesday 

Friday 

Tuesday 

Wednesday 

Wednesday 

Friday 

Thursday 

Tuesday 

Wednesday 

Monday* 

Thursday 

Wednesday 

Wednesday 


025 

1.75 

1SBS 

1.18 

2£3 


225 


1J88 


1.18 

1.45 

08 


ID 

1J7B 


4 s 


12.5 


■pMdewh are shown net pence per share end am aotustod lor any In M wenlng scri p Md 
wapdts and acedmts are not nqrmaay avafcMe unM atnad 6 nwato niter Ifw faMrri rnWOT 
eppiwe preemriary resdts. ft 1st quarteriy. 4 2nd quortorty. * 3rd Quarterly 


-M ort> aa*. are "» Mt b« j U mreau -and nUpe pans l VWM. flare m on 


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WEEKEND FT V 


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FINANCE AND THE FAMILY 


Australia’s star rises again 


: :r y?: *-=«>; :'s' V .V:-. ... , ' 


N ever mind Austra- 
lia's endless 
beaches and cuddly 
koalas. With a 5 per 
cent growth rate, low inflation 
and a stable political climate, 
interest is turning towards 
Australia as a good investment 
prospect So isn’t the country 
equally appealing in stock mar- 
ket terms? And shouldn't pri- 
vate investors, looking to 
diversity funds overseas, take 
note ? 

The answer probably is yes - 
but only with some big provi- 
sos. The first of these relates 
directly to the economic situa- 
tion. While the numbers look 
good at present, there is much 
debate within Australia about 
the quality and sustainability 
of the recovery. 

This argument centres 
mainly on whether the nation 
is headed for a repeat of the 
boom and bust cycles seen in 
the past, or whether a decade 
of economic restructuring - 
including the continuing 
reduction in tariff barriers, 
some deregulation of the 
labour market, and a major 
effort to introduce competition 
into key sectors - has wrought 
fundamental changes. 

The optimists - who include 


They used to call it the ‘lucky country ” before recession struck 
and unemployment soared Now, though, recovery seems well 
under way. Inflation is low, the growth rate is relatively high, the 
political climate is stable — and prospects for overseas 
investors appear to be good Nikki Tait reports from Sydney 


Ralph Willis, the Austr alian 
treasurer - think it has. Gov- 
ernment forecasts say the 
economy should grow at more 
than 4 per cent for the next 
four years; the budget deficit 
should reduce steadily from 
AS13.6bn this year to virtually 
nothing by the late 1990s; and 
the underlying inflation rate 
should be pegged at around 2 
per cent, at least in the imme- 
diate future. 

According to this scenario, a 
greater export focus by Austra- 
lian companies should allow 
the nation to piggy-back on the 
growing economies of south- 
east Asia, while the successful 
outcome to last December's 
Gatt talks could boost the farm 
sector significantly. By the 
time the provisions of the Uru- 
guay Round are implemented 
fully, the annual export benefit 
could be ASlbn-plus. 

The pessimists paint a very 
different picture. They note 
that the economy's strength 


Australia SE 

indices rebesed 

140 — — — 



stems from a strong recovery 
in consumer HairwmH Business 
investment, by contrast, 
remains weak, and actually 
dipped last quarter while the 
household savings ratio is 
painfully low, too. All this, 
they say, is potentially desta- 
bilising. 

They feel that if capacity 


constraints are reached and 
investment surges all at once, 
balance of payments problems 
could emerge. These would be 
doubly serious because of the 
domestic savings shortage. The 
government could then be 
forced into interest rate 
increases, tax rises - or both. 

Don Mercer, head of the ANZ 
- nng of the country’s lifting 
commercial banks - says: "My 
fear is that we are going to 
blow it again. Achieving a 
durable economic upturn 
hinges on a s ubstan tial lift in 
investment, exports, and in 
national saving." 

In the short term, perhaps, 
this debate need not worry a 
prospective investor too much. 
Most analysts forecast strong 
profits growth in the financial 
year that ended In June, and 
again in 1994/95 as restructur- 
ing moves taken during the 
recession augment the upturn 
in demand. 

John Baynos, strategist for 


Australia is forecast by 
broker Barclays de Zoete 
Wedd to produce one of the 
highest equity returns of any 
geographical area over the 
next 12 months. BZW expects 
returns of more than 22 per 
cent in local c urren cy terms 
over the period. 

It does, moreover, see the 
Australian dollar recovering 
from being one of the 
cheapest currencies around 
relative to the pound - thus, 
the return equates to about 
38 per cent in sterling terms. 
This return projection is 
bettered only by Canada. 

BZW believes the industrial 
sector Is particularly 
attractive and estimates that 
it is 15 per cent below 
valuation. 

For those wanting exposure 
to Australia, the choice 
among OK single country 
funds is limited. There are 
only three unit trusts: 
Barclays Unicom Australia, 
M&G Australasian and 
General, and NM Australia. 
Last December, NM also 


For good returns, 
dive Down Under 


ianm»fH»d a Smaller 
Australian Companies 
investment trust; this is 
trading at a premium to its 
net asset value, reflecting a 
high degree of demand. 

NM was the UK arm of the 
National Mutual life 
Association of Australasia 
until it was bought by 
Friends Provident at the end 
of last year. NM Australian 
is the largest of the three 
trusts, with about £36m under 
management, and is top of 
the Australasian sector over 
five, seven and 10 years to 
July 1. But it has slipped 
more recently to second 
position ove r three years, 
according to HSW (offer to 
bid, net income re-invested). 
Growth over 10 years is 455 
per cent and 85 per cent over 
five years. 

(t is the only one of the 


three trusts to be fawinded 
in the Unit Trust Analysis 
Guide produced by Fund 
Research, lids measures the 
performance of binds in terms 
of consistency and fund 

management wp»rtoBep 7 as 

weD as quantitatively. Unit 
Trust Analysis selects 
consistently high-performing 
funds for the guide. 

The NM wnit trust 
40 to 50 stocks, with the top 
20 holdings accounting for 
about 75 to 80 per cent of the 
i n ve s t m ent. Hie fund 
manager, Victor de Lorenzo, 
also manages the NM Gold 
fond and the NM Small er 
Australian Companies trust, 
as well as NM’s Australian 
retail trusts. 

Another way of gaining 
exposure to the Australian 
market is to invest in a 
commodities fund, which will 


have exposure not only to 
Australia but also to other 
mineral-rich countries, such 
as South Africa. But the 
spread across continents does 
not mean these are any less 
volatile than a single country 
fond - which means that it 
is not a good idea to have 
much more than 5 per cent 
of your overall growth 
portfolio in these funds. 

Mercury's Gold & General 
unit trust has a consistently 
high performance record in 
the commodity and energy 
sector ove r five years to July 
1 (source; HSW); about 30 per 
cent of the portfolio is 
in ve s ted in Australia. 
Waverley Australasian Gold 
is a fund that is targeted 
more regionally; but while 
it would have turned £100 
invested two years ago into 
£315 today, the same amount 
invested seven years ago 
would be worth only £57 now. 

Scheherazade 

Daneshkhu 


Where pensioners can find 
the most for their money 

Barbara Ellis examines the investment options for those over 65 


M ore than 160,000 
people have put 
£l.39bn into 
National Savings 
guaranteed income bonds for 
pensioners since the scheme’s 
launch in January. 

Holders over 65 get a 7 per 
cent annual return, paid gross 
(but taxable) each month over 
five years, on deposits between 
£500 and £20,000. But those 
who cash in before the end of 
the five years must give 60 
days’ notice and they will lose 
60 days’ interest as a conse- 
quence. 

Is this the best that pension- 
ers can do? 

■ Building societies 
The table shows how the bond 
compares with some erf the top- 
rated, five-year building soci- 
ety bonds. 

Escalator bonds, with inter- 
est rates rising each year, usu- 
ally impose a £2,000 minimum 
if interest is to be paid 


monthly but have a higher 
upper limit than the pension- 
ers' bonds - £500,000 or, occa- 
sionally, £im. Penalties for 
early redemption can be steep, 
however. The Halifax's escala- 
tor bond has interest rates 
stepped from 6.95 to 10-95 per 
cent, averaging 8.49 per cent 
over the five years. 

Withdrawals are allowed 
only after two years, when the 
penalty is six days’ loss of 
interest for each full month 
left. But there is a maximum 
penalty of £326 on a £10.000 
investment 

After tax, the NS bond’s 7 
per cent is worth 5.25 per cent 
to a 25 per cent taxpayer or 43 
per cent to those on higher- 
rate tax. This compares with 
the top-paying escalator bond 
- at present from the Wool- 
wich building society - at 6.42 
and 5.14 per cent net 
■ Guaranteed income bonds 
These bonds are issued by 


Battle of the Bonds 

Bond 

Total Inc Max 
(iTmlHy) penalty 

NS Ponaiwm 

ea^oo 

£115 

BS Escalators 

Alliance & Leics 
Halifax 
Nationwide 
Woolwich 

£3,125 

£4,245 

E3JI75 

£4,285 

£407 

£326 

£775 

£272 

Soi>c« NSMAng Mca. 'Anna M PI OQOO 
miUwii * par way pefco. 


insurance companies and pay 
out income at an agreed rate - 
either annually or monthly, 
over terms ranging from one to 
five years - on a minimum 
investment of (usually) £5,000. 

Chase de Vere’s Moneyline 
this week quoted five-year Gibs 
paying monthly income at 
rates ranging from 6.54 per 
cent on £5,000 to 714 per cent 
on £50.000. 

The rates are better than the 
National Savings pensioners’ 


This announcement appears as a mancrof record only. 

JERRY'S 

HOME STORE 

Jerry’s Home Store PLC 
Issue of 

1,500,000 New Ordinary Shares of£l each under the 
Enterprise Investment Scheme 
(following an issue under the BBS in April 1993) 
Fully Subscribed 

Stockbrokers and Sponsors: 

Townsley & Co. 


Solicitors to the Company 
and the Offer 

m 

NABARRO NATHANSON 


Auditors, Reporting Accountants 
and Tax Advisers: 

Iwdte sss 
Iks sss-l 


& 


bond, but investors who cash 
in guaranteed income bonds 
before the foil term can expect 
to lose up to around 4 per cent 
of the Initial investment as a 
penalty. 

Rates are quoted net of 25 
per cent tax, which cannot be 
reclaimed by non-taxpayers. 
Higher-rate taxpayers face an 
additional 15 per cent to bring 
their rate up to 40 per cent, but 
this is based only on the net 
amount and not on a 
grossed-up figure, as with 
building society interest paid 
net 

Some tax on the bonds is, 
effectively, deferred: investors 
can withdraw the equivalent of 
5 per cent of the initial invest- 
ment each year "tax free” but 
this is adjusted at the end of 
the term. 

Mark Holland, of fee-based 
financial adviser Chamberlain 
de Broe, says that this makes 
the bonds thoroughly tax-effi- 
cient for those expecting to 
drop into a lower tax bracket 
by then. 

■ Gilts 

Gilts, or government fixed-in- 
terest securities, deliver a spe- 
cific return if held to maturity 
and pay income twice a year. 
But if you want to pull out 
before they reach maturity, 
you could well make a capital 
loss. 

Some index-linked gilts will 
pay a better return than the 
National Savings pensioners’ 
bond. Martin Riley, of stock- 
broker Henderson Crosthwaite. 
picks out two: 

□ 214 per cent 2001s at a mar- 
ket price of £164%, against the 
indexed value of £180.9, imply- 
ing a real redemption yield 
over inflation at 3^ per cent to 
a 25 per cent taxpayer and 2 £ 
per cent to a 40 per cent tax- 
payer. 

□ 2 per cent 2006s at £167 
against an indexed value of 
£2035, implying real redemp- 
tion yields of 33 per cent and 
3.0 per cent to 25 and 40 per 
cent taxpayers respectively - 
that is, 5J) and 5.6 net at Jane’s 
Inflation rate of 2J> per cent 

A conventional (non index- 
linked) gilt. Treasury 6% 
1995-1993 priced at £96, is yield- 
ing &24 per cent or 521 per 
cent, depending on the tax 
rate, but there is no inflation- 
prooflng. 

■ See Highest Rates table, 
Page VI 


stockbroker McIntosh Baring, 
toinicf listed companies could 
achieve an average 13.3 per 
cent return over the next 12 
months; with inflation at such 
low ebb. this suggests a 
double-digit real return. 

Merv Peacock, head of mar- 
ketable securities at the AMP 
insurance giant, says he is 
looking at a 15 per omit annual 
growth in parning s per share 
for the next two years. Never- 
theless, the possibility of a 
“blow-out” scenario down the 
track does suggest that any 
investment funds committed to 
the Australian market s hould 
not be left unattended. 

A second, more technical, 
point is that the Aust ralian 
stock market has enjoyed a 
very strong run already. This 
began late in 1992 and contin- 
ued until early this year when 
the US Federal Reserve 
increased Interest rates. 

It is true that the Australian 
All-Ordinaries InHpx han fallen 
by about 14 per cent since 
then. But the long period of 
unbroken progress means tv. at 
the historic price/earnings 
ratio on the i ndgr has rtimhpd 
to around 17-18 times. This 
looks wildly out of line with 
the 1970s and 1980s when the 
market p/e rarely exceeded 
10-11 times, and was sometimes 
as little as 6-7. 

Yet, as statisticians at the 
Australian Stock Exchange 
point out, comparisons with 
the 1960s (a low-inflation era) 
are much more favourable. 
Then, the market p/e stood at 
around 15-16 titmm warnin g* In 
short, if you want to believe 
the Australian market offers 
value, you probably need also 
to believe that an era of mod- 
est price increases is here to 
stay. 

For those investors unde- 
terred by such caveats, some 
fund managers do think the 
market’s post-February weak- 
ness presents a good buying 
opportunity. Offshore inves- 
tors, moreover, may have the 
added opportunity of a cur- 
rency play. Australia remains 
weighted heavily towards the 
resources sector and tends to 
see a close relationship 
between commodity prices and 
Its currency, with a rise in the 
former usually boosting the 
dollar. 

Although commodity prices 
have moved off their recent 
lows - and have surged in 



Downtown Sydney, where ma ny Austrafian companies have their h eadquar te rs 


GJyn Qcnn 


recent days - most forecasters 
see further improvements 
ahead as more economies pull 
out of recession. “I know some 
investors are playing the Aus- 
tralian market largely because 
of the foreign exchange fac- 
tor,” says one fond manager. 

So, as long as you are per- 
suaded that this adds up to a 
plausible case, where should 
you shop? A number of fund 
managers and analysts say 
they see more value in the 
industrial sectors than the 
resources stocks, simply 


because the ciimh so far has 
been most marked in the latter 
area. (Many major resource 
companies, like Western Alin- 
ing Corporation, saw their 
share prices double between 
late 1992 and early 1994). 

Baynos likes Australia's 
media sector because of such 
factors as its exposure to the 
surging domestic economy and 
the potential for increased 
advertising. He also likes the 
engineering sector and sees 
some selective value left 
among resource stocks. 


Peacock tends to concur on 
this point. "Resource stocks 
run bard when they run. and it 
would be a brave man who 
says that they won't run fur- 
ther." he says. But John Mur- 
ray. head of equities at Perpet- 
ual Funds Management, thinks 
that “a fair bit of the resources 
game is over”. He reckons that 
some of larger industrial con- 
glomerates have been over- 
looked in recent months and 
recommends the likes of BTR 
Nylex and Pacific Dunlop, both 
of which are listed in London. 


WILL ROLLING SETTLEMENT 
SERIOUSLY AFFECT YOUR 
INVESTMENTS? 

More than likely. 

With the introduction of Rolling Settlement all investors need to 
adjust for the change from the old account system. 

Each transaction now has to be settled using cleared funds, and all 
documentation must be in place 10 working days after dealing. Next 
year this is expected to become only 5 days. If documents and cleared 
funds are not available, your dealings could be restricted or even 
prevented. Which won’t help your investments. 

The solution is to use our nominee service. 

This gives you a nominee account for registration of stock, which 
solves the documentation problem. It also gives you a linked deposit 
account with a major bank or building society to ensure that cleared 
funds are on hand ready for settlement. 

If you haven’t already made provision for the change, you would he 
well-advised to switch to a nominee service. It helps us to get on with 
settlement and allows you to concentrate on your investments. Which 
helps everyone. 

For more details, please call our nearest office or write to us at One 
King Street, Manchester M2 6AW. 


HENRY COOKE, LUMSDEN pic 


MANCHESTER 
061 834 2332 
Peter Penfold 


LONDON 
071 962 1010 
Rupert Cottrell 


LEEDS 
0532 439011 
Richard Sutherland 


WALES 
0492 874391 
Philip Brown 


ISSUED BY HENRY COOKE, LUMSDEN PLC A MEMBER OF THE LONDON STOCK EXCHANGE, THE 
SECURITIES AND FUTURES AUTHORITY AND THE ASSOCIATION OF PRIVATE CLIENT INVESTMENT 

MANAGERS AND STOCKBROKERS. 

The value of securities and the income from them can go down os well as up. You muy not recover the 
original amount invested. Some securities cany a greater degree of risk than others. This service may not 

be suitable tor all invcstois. 

A member of the I lenry Cooke Group pic. 








FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


FINANCE AND THE FAMILY 


Traps for incautious taxpayers 

The Revenue can make mistakes and you should always check its figures, says Andrew Radice 


T ax retains are Sowing into 
the Inland Revenue, most 
for the 1993/94 tax year. 
But since the Revenue 
admits it makes mistakes, you 
should always check the contents of 
the brown envelope. 

You can easily get four separate 
assessments for one year's income: 
self-employed earnings, employed 
earnings, untaxed income and tax 
income - not to mention capital 
gains. While each assessment fol- 
lows the same logical outline, here 
are some points to watch for. 

■ Income 

Normally, this presents no prob- 
lems for Schedule E (pay as you 
earn} taxpayers as employers pro- 
vide them with details of salary and 
benefits. But all other sources 
should be checked carefully. 

■ Allowances 

Often, these are wrong. Ask your- 
self the following questions: 

1. Does your assessment include 
your personal allowance (£3,445)? 

2. If you are married, either you 
or your spouse should benefit from 


the married couple's allowance 
(MCA). Does one of you have it? For 
1993/94, it is £1.720 for those under 
65. £2,465 where the elder spouse is 
under 75. and £2^05 where the elder 
spouse is 75 or over. 

3. If you are over 65, you have a 
higher personal allowance (even 
higher if you are 75 or more) pro- 
vided that your total income is 
£14^00 or less. Is this shown on 
your assessment? 

4. Did you pay personal pension 
contributions or additional volun- 
tary contributions (A VCs) in the tax 
year? If you are self-employed, you 
should get relief in the allowances 
section of your assessment If you 
are an employee, you will have had 
basic-rate tax relief when you paid 
contributions, so you will be due 


fu rther relief only if you are a 40 
per cent taxpayer. 

If you are self-employed, half of 
your class 4 national insurance con- 
tribution (NIC) - which is calcu- 
lated separately at the bottom of 
the page - is given as an allowance. 
But there can be errors. There is no 


Tax assessments are sent out 
with accompanying notes from 
the Inland Revenue. 

Some, particularly on the 
Schedule E (Pays) assessments, 
are extremely helpful. Others may 
confase the lay reader. 


for 1993/94, so an assessment show- 
ing a lower limit of nil is wrong. 

Even if the line “Amount charge- 
able to tax" is correct, you need to 
check that the tax rates are right 
For 1993/94, the first £3.500 is 
charged at 20 per cent the next 
S2L200 at 25 per cent and 40 per 

cent thereafter. 


Many people employ accoun- 
tants, but it makes sense to 
study your own tax assessment 
And rem em b er : 

■ If you do not understand any- 


The fun starts If you have divi- 
dends. There is no more to pay if 
you do not fall into the 40 per cent 
band, but there are complications if 
your dividend Income straddles the 
25 and 40 per cent bands. Your capi- 
tal gains are treated as the top slice 
of your income. 

The bottom box on the assess- 


rL They are usually helpful 

■ If you still do not understand, 
take professional advice. 


ment. “Allocation of allowance and 
rates of tax" can be confusing. You, 
the taxpayer, have the right to 
choose the way in which you set 
your personal allowances against 
your income. 

It will usually be to your advan- 
tage to set them off against the 
income which is taxed earliest. If 
you are an employee, the Revenue 
normally will do this for your 
through the Paye system. But in 
order not to raise assessments for 
trifling sums, the Revenue usually 
will restrict your allowances 
instead. 

If. say, you are a married man 
with a salary of £40.000 in 1993/94, 
taxed interest of £1.500 (net), 
untaxed income of £150. and a deed 
of covenant in favour of your parish 


church for £100 a year, your allow, 
ances total £5,165. 

The Revenue probably wtii not 
assess the £150 but, instead, will 
restrict the allowance on your 
Schedule E assessment to £5,015. 
Tins will show up both in the 
“Allowances etc" section and tfe 
"Allocation" section. 

■ Gift aid 

You can make donations to chari- 
ties by deed of covenant or under \ 
the Gift Aid scheme; these are : 
allowable against your higher-rate 
tax bill But relief for a chari table 
deed of covenant is slightly compli- 
cated. You make your gift net 
basic rate of tax of 25 per cent For 
tax purposes you have paid £133, 
Grom which you have deducted £33 
tax. If you pay higher-rate tax. you 
get relief for your donation by hav- 
ing your 25 per cent band increased 
by £133, So, your basic-rate band of 
£21.200 will be increased to £2L33 3. 

The effect of this is that you mR 
pay tax at 25 per cent on £133 of 
your income which otherwise would 
have been taxed at 40 per cent 


■ You only have 30 days to 
thing in your assessment, ask appeal against an assessment, so 
your inspector of taxes to explain . do not waste time. 


Class 4 NIC on profits below £6,340 

If you don’t understand, then ask 


The Professionals 

A business built on benchmarks 


Seeing how the experts look after their 
clients’ money gives an insight into 
managing your own better. That's the 
theory behind Joanna Slaughter’s series 
on private client investment managers. 

Today: Kleinwort Benson 


A lastair Begg, chief 
investment officer 
of Kleinwort Benson 
Investment Manage- 
ment , is not one for false mod- 
esty. “We have one or the most 
disciplined approaches to asset 
allocation for private clients 
that there is," he claims. 

That approach has been 
refined and rationalised 
recently. In January. KBIM 
produced three benchmark 
portfolios for private clients, 
adjusting the weightings to 
reflect the needs of those seek- 
ing income, capital growth, or 
a balance of the two. 

Hie benchmarks were built 
around certain assumptions, 
says KBIM director Andrew 
Gregory. These are: 

■ That the minimum require- 
ment for most private clients is 
maintaining their assets in real 
terms. 

■ That equities will perform 
better than bonds in the long 
term. 

■ That the risk of a portfolio 


should be spread both geo- 
graphically and industrially. 

Begg adds: “The benchmarks 
are the rocks to which we hold 
fast. We make our decisions 
around them." 

Take the benchmark portfo- 
lio for a “balanced” private cli- 
ent It has 15 per cent in index- 
linked gilts, 10 per cent in con- 
ventional gilts, 45 per cent in 
UK equities and 30 per cent in 
overseas equities, with the 
international exposure 
weighted equally between 
Europe. Japan, the Far East 
and America. 

Yet KBIM’s present market 
weightings for a balanced port- 
folio have far less money 
invested in bonds (just over 7 
per cent), a 60 per cent expo- 
sure to UK equities, and a 
smaller exposure to Japan. 

The KBIM policy committee 
has regular global strategy 
meetings. The last policy deci- 
sion it took was to sell some of 
its Japanese investments and 
place them into the Far East 


Investment managers: factfile 4 
Kleinwort Benson 

(Kleinwort Benson Investment Management) 

Established: 1792 

BegifetoR $*»$•««* of Btgtand 
Number of offices in UK: Two 

' ffcgnbwr of ofltaae'iecrid w Moe 19 (groups 9 (investment management) 

Funds under management: £14 bn (£2.6bn private cflents) 

M^^o#uk^atocWsc3.:xa 

Hunfeer of ex pa t n staflorwgi national private cflents; 700 

WRntaWjmmatmen* tor. photo cfente: £200,000 

Cwrant asset aBocatfon tor private clients: Balanced portfolio, UK equities, 60.54%; overseas 
32^%* cash anti gKs, 7.2% 

Average annual portfoflo twnavec 25-30% 

Pbb9:.0j 9% onirst£1m;O.S96.on neon £Zmc G.26% thereafter; minimum £1,500 pa 
Fees are offset tty commissions. 


Such a policy shift is reflected 
within 72 hours in the portfo- 
lios of discretionary clients and 
the 10 per cent of clients who 
are non-discretionary are 
alerted, too. Begg says this 
cannot be done in 24 hours 
because each client portfolio 
has to be studied to see if a 
capital gains tax liability will 


be triggered. For the same rea- 
son, there is a similar time 
frame when chang es are ™i 1 p 
to KBIM’s list of approved 
shares. 

The list, based on recomme&r 
dations by the firm's 12-mem- 
ber research group, features 50 
to 60 global shares and 25 to 30 
in the UK. Interpreting it on 


FOR CAPITAL 

GROWTH POTENTIAL, 

SWITCH ON TO 

• ’ - 

THE POWER OF 
GLOBAL UTILITIES. 



THE NEW TEMPLETON UTILITIES FUND 

As standards ot" living continue to rise across the globe, it makes sense to invest in the basic facilities chat underpin 
growing economies - key companies providing services such as gas, telecommunications, water and electricity. Its 
these which the Templeton Utilities fund targets, aiming to provide a combination excellent long-term returns and 
relatively low risk. The economic environment now looks ideal wich low inflation, low interest rates and increasing 
privatisation in the emerging economies of Eastern Europe. Latin America and the Far East. Which means the demand 
for utilities is likely to grow steadily and strong, perfect for a capital growth fond. And of course, the fond is managed 
by Templeton, part of the worldwide Franklin Group, with a wealth of international expertise and over SI 12 billion 
under management. 

For more derails, calk to your financial adviser. Alternatively, fax or send the coupon 
below to your nearest Templeton Service Office or call us on 


Edinburgh 
T«t 44 506 31255 
Fax.- 44 31 228 4506 


Luxembourg .. 
Tel: 352 466 6671 
Fax: 352 466 676 


Invi-nm ihuuM mnnitbi* that pui pertbmuniy h Out Ocmuniv 1 jgnJe m she uot M in«*n«rrt » 4* Temptotwl (total Soare^r Fwil» enw tfuauixe a! -m inraior iut) m .-ct iht 
jimtiui he hi. imniAl Cuncnev inwwwmi nuv Utuc rtuaunuoi m viiiw Tbe pratvosm «* *c UK npiburv nm«u to hoc *pph to wtutinr m flic Trpffeb.<!i Ctotul Vnirpf 

Fur, I, ini eompcmihjoi under she UK Immoorr CunpoMwi Scheme not be jiiiUto. 


FT1&7.M 


rev Tcmpleiun R rendition Ollicc. Dot IT Nipcr Squint. L.vuigiroo EH5-1 5BR. 
t'hir..- wnJ nu? dead* -jl ttie Tcaipleina Unliun tiinA 


AJdnr.v 





Templeton 


Thw ulveirttracai n inuei bv Toupldun Imnnncni Member of IMHO and she Temp Iciao Midxnnr Croup. 


behalf of clients is the task of 
the 25 portfolio managers. 

There Is also a black-list of 
shares; this includes compa- 
nies with opaque accounts. 
Begg says: “We never hold the 
shares if we can't work out 
what is going on in the com- 
pany because we can’t 
research it.” 

Although KBIM sometimes 
invests directly overseas on 
behalf of the very wealthy - 
recently, it bought Philippines 
Long Distance Telephone for 
private clients - Gregory says 
portfolio managers “would not 
make that kind of investment 
without patting in a basic fund 
first If you want to invest in 



Axe 

for 

bonds 


Some fixed-rate bonds, issued 
in recent weeks by building 
societies and offering good 
returns, have now been with- 
drawn. 

Chelsea building society 
withdrew its five-year fixed 
rate of 9 per cent gross this 
week. SkLptcm has withdrawn 
its four-year fixed rate of 8.75 
per cent after only 12 days. 

The term of the Newcastle 
Growth bond has been reduced 
from five years to three, with 
rates starting at 7 per cent in 
the first year and rising to 7.5 
in the second and 8.5 in the 
third. 

Although these five-year 
fixed rates have been with- 
drawn, the societies still have 
very good products to mstrh 
National Savings. Britannia 
has a one-year bond at 6.5 per 
cent to beat FIRST Option 
bonds. 

A recent survey by Money- 
facts shows that an investment 
of £10,000 made in building 
society fixed-rate products on 
July 1 would all pay out more 
monthly interest that the Pen- 
sioners Guaranteed Income 
bond by the end of tbe term. 
The leaders are Woolwich BS 
on the monthly option of its 
Guaranteed Growth bond, and 
Halifax with its Stepped 
Income Reserve. 

The Woolwich bond requires 
a minimum deposit of £1,000. 
This pays monthly interest of 
7.05 per cent in year one. 7.5 in 
year two, 7.95 in year three, 9.3 
in year four and 11.05 In the 
final year. 

Guaranteed income bond 
rates have also held. These are 
of interest to taxpayers as they 
are automatically paid net of 
basic-rate tax. which cannot be 
reclaimed. 

The top rate on a fire-year 
bond at the moment pays 7.75 
per cent net. equivalent to 
10.33 per cent to a basic-rate 
taxpayer. 

Christine Bayllss 
Moneyfacts 



emerging markets, or some- 
where like Japan, the best way 
to do it is through a collective 
scheme”. 

KBIM is an enthusiast for 
emerging markets and uses its 
own offshore fund or invest- 
ment trust to give private cli- 
ents exposure .to this sector. 
Instead of investing according 
to an index, the firm weights 
each of the 24 emerging mar- 
kets equally, on the ground 
that there is Ifttle or no corre- 
lation between tbe perfor- 
mance of the individual mar- 
kets. 

When a market outperforms 
by a certain amount, the man- 
agers are forced sellers; when 


it underperforms, they are 
forced buyers. Begg says the 
strategy Is unique to Klein- 
wort's emerging market funds 
and that the diversity reduces 
risk. 

KBIM’s asset allocation and 
stock-picking disciplines do not 
mean that each private client 
is dealt the same hand of 
cards. Begg says: “You can’t 
put people into boxes, and 
there is no answer that is 
likely to be right for more than 
one client Where I think the 
value is really added is by port- 
folio managers who have been 
here for a long time, who have 
known their clients for a long 
time , and who listen to them 


and translate what they say 
into a portfolio." He adds: 
“Death is our greatest source 
of client loss, by quite a long 
way.” 

Where appropriate. KBIM’s 
portfolio managers use deriva- 
tives such as futures and 
options. Gregory believes 
derivatives will become an 
increasingly acceptable way of 
managing portfolios although 
he concedes that, as yet, "it is 
not something that a number 
of diesis are very comfortable 
with". 

Although there is no hard 
rule about the acceptable sire 
Of portfolios, the mlnlmmp 
annual management fee of 
£1,500 largely dictates the 
level Clients with less than 
£200,000 will be steered 
towards the firm's unit and 
investment trust service. 

Un like many competitors, 
KBIM .offsets fees against the 
commission generated during 
the charging period. No fee is 
payable on holdings of Klate- 
wort Benson unit trusts, off- 
shore trusts and investment 
trusts. 

Clients also can benefit from 
KBIM’s unusual status as a 
bank in its own right It is reg- 
ulated by both Imro and tee 
Bank of England, and the ser- 
vices of Kleinwort Benson Pri- 
vate Bank have been designed 
specifically for clients with 
investment portfolios. Gregory 
points out: “Clients can place 
deposits and borrow bom 
KBIM. so the quality of the ser- 
vice we can offer is genuinely 
integrated. It gives us a very 
quick response to any require- 
ment that clients may have." 

KBIM is anxious also to 
emphasise that it is not inter- 
ested only in the super-rich 
Gregory says: “There is a com- 
mon misconception in the oofr 
side world that you cannot 
come through the door here 
without £ltaL That is not so* 


HIGHEST RATES FOR YOUR MONEY 


Acoouit 

Telephone 

NaOcm/ 

Mttn 

MMjnqi 

doposK 

Rato 

% 

tot 

P* 

MSTAMr Access A/cs 

Bfrminflham Vfldsferea BS 

Brat Class 

0902 645700 

Postal 

£500 

530% 


Bradford & Ongtey BS 

Direct Premkxn 

0345 248248 

Postal 

£1,000 

5.40% 

Y* 

Chelsea BS 

Classic 

0600 717515 

Postal 

SZ5Q0 

630% 


Mnttinghsn BS 

Post Direct 

0602 481444 

ry^.tnl 

rostai 

£25300 

SAM 



notice A/cs and BONDS 


CHy X Metropolitan BS 

Super 60 

0B1 464 0814 

80 Day 

E500 

630% 






£10300 

aeo% 


National Couities BS 

90 Day 

0372 742211 

90 Day 

£50300 

7.15% 

$ 

SWptan BS 

Fired Rate Bond 

0756 700511 

30-637 

£5,000 

835%F 


MONTHLY INTEREST 

Britannia BS 

Capital Trust 

0538 391741 

Postal 

£2,000 

537% 

My ' 

Confederation Bank 

Monthly Income 

0438 744500 

30 Day 

£2300 

535% 

£ "• 

Scataou^i BS 

Scarborough 94 

0600 560578 

90 Day 

£25,000 

8.75KB 


Yorkshire BS 

Fired Rata Bond 

0800 378836 

30336 

£5300 

830%F 

My • 

TBSKAe [Tax Free) 

Confederation Bank 


0438 744500 

5 Year 

£8300 

830%F 

Y* 

HincWay & Rugby BS 


04® 2S1234 

5 Year 

S3 JOKA 

735% 


Melton Mowbray BS 


0064 63837 

5 Year 

£1 

730% 

Yly •... 

Nottingham BS 


0602 481444 

5 Year 

£1 

7.15% 

IV 

WOK INTEREST CHEQUE A/e* (OrmmI 






~ 

Caledonian Bank 

HlCA 

031 556 8235 

Jnstant 

£1 

4.75% 


HOT 

Capital Plus 

081 447 2438 

Instant 

£1.000 

4.75% 

Q* 

Chelsea BS 

Classic Postal 

0800 717515 

fcistant 

£2300 

630% 

nr 





£25,000 

635% 

YV • 


OfFSHOBE ACCOUNTS |Qro— j 


WaoMch Guernsey Ltd 

International 

0481 715735 

Instant 

£500 

5.75% 

YN 

Portmen Channel islands 

Instant Gold 

0481 822747 

Instant 

£20.000 

&20% 

Y* 

Confederation Bank (Jrsy) 

Flexfcle bw 

0534 606060 

60 Day 

£25.000 

630% 

%Yly 

Confederation Bank (Jrsy) 

fowtroent Cert 

0534 608060 

5 Year 

£10300 

B3S*F 

Yly 

GUARANTEED MCOHB BOMBS {Med 

General Portfolio 


0279 482839 

1 Year 

£50,000 

430%F 


General PbrtfoCo 


0279 462839 

2 Year 

£20,000 

530%F 

Yfr 

Prosperity Life 


0600 521546 

3 Year 

E5.000 

632%P 

YV 

Consolidated LBe 


081 940 8343 

4 Year 

£2,000 

7.00%F 

*y 

EuoBo 


D71 454D105 

5 Year 

£10.000 

7.7S94F 

'0i 


WATIOItAL SWMtQS A/C» a BONDS jCwj 


tnvastment A/C 

1 Month 

£20 

525%G 

YB 

Income Bonds 

3 Month 

£2300 

630%H 

ttif 

Capital Bonds H 

5 Year 

£100 

735%F 

CM 

FW Option Bond 

12 Month 

£1300 

630%R 

Y* 

Paratonere SB 

5 Year 

£500 

730%F 

uy 

NAT 9AVMQS CERIOTCATES (Tax Free) 

41st Issue 

5 Year 

£100 

&40KF 

0M 

7th index Unked 

5 Year 

£100 

330%F 

otf 




+wn 


ChSdrens Bond F 

5 Year 

E25 

7.3S%F 

0 M 


This table covers major banks and Buikting Societies only. AH rates (except those under headhg Guaranteed income 
Bonds) are shown Gross. F = Fixed Rate (AU other rates are variable) OM ~ Interest paid on matwfiy. N* NetR** 

By Post only. A * Feeder account also required. B= 7 <fty loss of interest on <4 withdrawals. G> 5.75 per cart on 
ES0Q and above; 6 per cent on £25.000 and abova H= 6.75 per esm on £25,000 and above. J=» &40 per Mfitai 
£20.000 and abova Source: MONEYFACTS. The Monthly Guide to investment and Mortgage Betas, L»«*Y 
North Wsfeham, NorfoHc, NR28 06D. Readbra can obtain an Introductory copy by phoning 0682 500677. 


Who said your 
business can't 
have free banking 

and earn 4 . 00 % 

gross pa! 

CaU 071-203 1550 during office hours or 24 how line 071 -626 0879 



You can have 60 free 
transactions per month, 
and earn a high interest 
rate on a minimum 
deposit of £2001. 

ALLI E 

Bnits 2S. I>»B* « W**°" 


fjgjANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


PERSPECTIVES 


Computing /David Carter 

Spreadsheet 

simplicity 


D o not assume that 
spreadsheets are 
only for serious 
number-crunchers: 
they are the simplest type of 
personal database available. 
Once you understand how a 
spreadsheet package works 
you will And it useful for all 
sorts of tasks. 

□ Invoices and statements. 
For accounting, the spread- 
sheet will make all the calcula- 
tions automatically, incl uding 
17.5 per cent VAT. 

□ Quotations for jobs. If you 
issue quotations you can pro- 
duce them on a spreadsheet, 
then amend them into an 
invoice once the job is done. 

□ A sales or purchases day- 
book. Your spreadsheet ran 
also be used to analyse 
invoices into total, VAT, stock, 
telephone, fax, rent etc. auto- 
matically adding up and cross- 
casting the col umns 
□ Cashflow ami Sales forecast. 
Spreadsheets are handy for 
forecasting cash and profitabil- 
ity. Type anticipated weekly or 
monthly cash receipts and 
expenses into a cashflow fore- 
cast and the spreadsheet will 
automatically calculate the 
running balance on a bank 
account - or enter the number 
of units you expect to sell and 
the spreadsheet will calculate 
monthly income and gross 
profit 

□ □ P 

Of my own 200-odd spread- 
sheets, the great majority are 
simple lists, all of which can 
easily be amended, and a fresh 
copy printed. The main benefit 
of these lists is that they pull 
together a large amount of 
information into one place. Vir- 
tually every one is in con- 
densed print, so I can fit 132 
characters across the page. 

□ Contacts list In such a 
spreadsheet the column head- 
ings might be “company 
name", “contact", "phone no”, 
and "comments”. With about 
60 lines per computer page I 
can get 60 contacts and tele- 
phone numbers into a single 
page of printout 
□ Product price list Perhaps 
the most important list for any 
company. Record on your 
spreadsheet the part number, 
description, cost price and sell- 
ing price of each product you 
sell, ft is easy to keep the price 
list up to date as prices and 
products change. When stock- 
taking. type in the quantity 
counted of each product then 
multiply by the cost price field 
for an instant year-end stock 
valuation. 

□ Foreign currency. For exam- 
ple, if your base prices are in 
sterling and you need to con- 
vert to D-Marks, the spread- 


sheet will automatically apply 
the latest exchange rate. 

□ Importing/ Property /Portfo- 
lio valuation. A spreadsheet is 
ideal in importing, for convert- 
ing prices into sterling and 
working out the landed cost In 
the property business, multiply 
the square footage of each 
building by the latest insur- 
ance or rental rates per square 
foot to calculate annual insur- 
ance cost or rental income. If 
you own shares, enter the 
name of each security and the 
number held into a spread- 
sheet, then enter the share 
price each week to calculate 
your current portfolio valua- 
tion. Then enter the Inland 
Revenue's latest indexation 
factor to work out capital gains 
tax liability. 

□ Retail businesses. Shop 
owners unsure how to use a 
conventional sales ledger such 
as Sage, should forget sales 
ledgers which deal in credit 
sales. Instead, they should use 
a spreadsheet to reconcile cash 
takings with the till roll each 
day. Add up the totals each 
month, then divide the till roll 
total by 1.175 to wort out VAT. 
Then post as a single journal 
direct to the nominal ledger. 

□ Daily till roll sales by 
department. Another retail 
application. The columns of 
the spreadsheet would be the 
days of the week: the rows 
would be the departments 
(“food”, “confectionery”, etc). 
Rater the departmental totals 
each day from the till roll and 
the spreadsheet will add up the 
total weekly sales by depart- 
ment- With a conventional 
spreadsheet package you 
would create separate spread- 
sheets for each week and 
would end up with 52 by the 
year end. 

□ Three dimensional spread- 
sheets. A 3-D spreadsheet can 
consolidate all 52 into one 
spreadsheet, turfring them in 
one behind the other and 
allowing you to flip quickly 
from viewing one week’s sales 
to the next. 

□ □ □ 

Which spreadsheet do you 
buy? You may find that the 
Excel or Lotns 1-2-3. are more 
than you will ever use and that 
an integrated package such as 
Microsoft Worts is more suit- 
able (£84 by mail order from 
Guardian Computing, 
0753-516959, Dos or Windows). 

For retailers, the best 3-D 
spreadsheet package is Bor- 
land’s Qoattro Pro 5.0 for Dos 
(£38, also from Guardian). Its 
manual (page 48) contains an 
excellent tutorial showing how 
to set up a daily expenses anal- 
ysis. 


R 


ather than grow- 
ing too big for 
their hoots they 
have had to 
avoid letting suc- 
cess go to their heads at Olney 
Headwear, the only manufac- 
turer of men's hats in Luton, a 
traditional hat-making town. 

After 75 years m aking pan- 
ama hats and a handful of 
other styles, including uniform 
hats, the company made its 
first takeovers in the late 
1980s. The recession years have 
been excellent for business *- 
sales have risen 60 per cent in 
five years. 

“Although we are making 
42,000 men’s straw hats a year, 
nearly all of which are pana- 
mas, we now have only 60 per 
cent of the UK market in these 
fashionable styles, which is a 
decrease in ma r ket share,” said 
managing director Michael 
Olney, 54. 

“When the p anama boom 
started in. the late 1980s, a 
number of other manufactur- 
ers took up the challenge. 
Many found they weren’t up to 
the job, but a few have stayed. 

“However we are still the 
country’s biggest manufacturer 
of genuine panama hats. using 
hand-woven torquilla fibre 
imported from Ecuador, and in 
the meantime the two take- 
overs have meant we have 
increased our total range of 
headwear to 500 different 
styles." 

Michael and his brother 
Nicholas Hpari the family com- 
pany, which has 60 employees, 
and which manufactures 12 
styles of ladies’ hat, mainly for 
Laura Ashley and other large 
retailers. Ladies' hats comprise 
17 per cent of the company’s 
£2.5m turnover - about the 
same percentage as panamas. 
Workwear hats - mainly for 
the food and laboratory indus- 
tries - make up 27 per cent, 
and gents' tweed caps and hats 
another 20 per cent 
“We try to make our range a 
mix of classics and fashion 
items,” said marketing man- 
ager Paul OffortL 

"Although the panama hag 
been made by Olney for many 
of the company’s 80 years and 
is now an established rfaggir it 
would be foolish to aKKiima it 
will always remain as fashion- 
able as it has been for the past 
five years. 

“Michael and Nicholas were 
very wise to buy a small Luton 
gents’ tweed hatznaker in 1988, 
and in 1989 they consolidated 
this by buying a Glasgow cap 
specialist from the receiver for 
£12.500 in late 1989, just before 
1 joined the company. The two 
acquisitions broadened the 
Olney range of expertise and 
almost doubled the range of 
products." 

The recant purchase of 5,000 
sq ft of extra, space adjoining 
the Luton factory at a price of 
£90,000 was financed by a 10- 
year loan from NatWesL 
Apart from that, the only 
borrowings are on overdraft 
This arrangement Is vital 
because of the seasonal nature 
of the hat trade, and also 
because cashflow is very 
unpredictable, particularly 
with suppliers in Ecuador and 



Dm hat-making Ofeieys (from Ml): Andrew, Nicholas, Michael and David 


Aihlov AbIinuu,! 


Minding Your Own Business 


A family keen to get ahead 

Clive Fewins on the recession-beating strategy of a hat-making company 


from which Olney buys 
all its straw. 

All the overseas buying is 
done by letters of credit, but 
getting the money in from the 
retail trade In this country is 
frequently a headache, said 
Offord. That and the other 
financial aspects of the bum- 
ness are the preserve of Mich- 
ael’s son David, 28, the com- 
pany accountant He and his 
brother Andrew. 31, who is pro- 
duction manager, are the 
fourth generation of the family 
in the business. 

In 1969 - a notable year for 
the company - the brothers 
also changed the name from 
A_E. Olney (their grandfather 
Albert Edward founded the 
company in Luton in 1914) and 
poached Offord from a competi- 
tor to implement their new pol- 
icy of selling direct to the high 
street 

“For nearly 75 years we had 
sold to the trade, but for a vari- 
ety of reasons we decided to 
cut out all wholesalers and go 
direct to the retailers," said 
Michael Olney. “Paul’s initial 
task, together with my brother 
Nicholas and three agents, was 
to make this strategy work. A 


new leaflet was produced 
detailing the entire range of 
panamas, cottons and straws, 
workwear hats, tweeds and 
caps and gents’ felt hats, and 
Paul took to the road. 

“We thought it would be dif- 
ficult opening up 500 accounts 
in shops all over the country." 
said Offord. “In fact, we 
received a very good reception 
in the retail sector. After 75 
years in the trade we were 
pleased to find we were pretty 
well-known. A lot of our cus- 
tomers had been buying our 
hats under different names 
without realising it. It was 


hard wort legging it all over 
the country, but well worth the 
effort It was very good strat- 
egy on the part of Michael and 
Nicholas - and the move came 
at just the right time to coun- 
teract the effects of the reces- 
sion." 

The company's turnover is 
£2£m. Rates of profit on differ- 
ent lines are a well-kept secret 
In such a competitive business, 
but the company seeks a net 
profit of 25 per cent 

The main financial obstacle 
is one Olney is well used to 
dealing with: the necessity to 
carry a large stock. 


“Hats are very tight, but 
bulky. Much of the newly-ac- 
quired building will be used for 
warehousing,” Michael Olney 
said. “At the beg inning of July 
we had nearly 4JI00 hats, val- 
ued at approximately £150,000 
in storage. Many have gone out 
now - but we need the space 
in anticipation of the increased 
numbers of tweed hats and 
caps we are making for 
autumn." 

Despite the prestige of its 
own-name hats in the high 
street, the company tries not to 
forget that the biggest single 
sector in its business is indus- 


it 


trial headwear, of which 
make 5,000 units a week. 

Michael said: "Many of these 
products require far less skill 
than goes into making a pan- 
ama that retails at up to £80. 
But in many ways they are the 
lifeblood of the company. 

“The other vital element in 
our success is our workforce. A 
lot of processes in hat-making 
will always be carried out by 
hand. At the top end it is still a 
craft-based industry." 


■ Olney Headwear, 106 Old 
Bedford Road, Luton LU2 7PD. 
Tel: 0382-31512. 


Tenants and tax: a new view 


In your issue of July 2/3, you 
published a letter headlined 
"Tenants and the Revenue”. 
This dealt with the taxation 
position of a limited company 
formed by tenants to run tfaetr 
flat block. The tenants pointed 
out that the company did not 
generate a “profit” and asked 
why the Inland Revenue pro- 
duced assessments for tax. 

Your reply said, in part, that 
“the expenditure actually 
incurred in each year is 
deducted from toe rents and 
service charges doe from the 
tenants in the year, and any 
balance is chargeable to corpo- 
ration tax”. So also was any 
income from surplus funds put 
on deposit or invested. 

May 1 disagree with your 
reply? For nearly 40 years, I 
was in the Revenue - most of 
them in a senior technical post 
- and am now treasurer of a 
mutual flat-owners’ manage- 
ment company. Our leases, 
which are probably typical of 
general usage, permit toe com- 
pany to demand from us only 
as much as it spends on main- 
tenance, management and 
repair. 

Anything collected over and 
above is, strictly speaking, 
beyond its legal entitlement - 
although it is accepted by 
members in order to have a 
working fund because we can- 
not budget in advance for 
every penny. 

Rents under the leases are 
chargeable under Schedule d, 
but are negligible in relation 
to the total annual budget 
Any further sums collected are 
indeed under toe lease ~ but 
only to the extent strictly per- 
mitted by the lease as 
explained above. 

It should follow that (as the 
company is not trading) the 
only sums chargeable finally 
to corporation tax will be 
investment income such as 
bank interest as no Schedule 
A surplus can arise. 

My official practice (at my 
personal discretion only) was 
to tell such companies not to 



deduce them, and sh o u ld not 
be taken to be of universal 
application. 


Capital 

loss 


BRIEFCASE 


No legH negonsasi/f am bo accepted Of f» 
FTenM lines tor mwas gfit * *i ftrw 
odumre. A I rout w* be trowed by pa * 


bother me unless their interest 
exceeded £100 in toe year. As 
treasurer, however, 1 have 
found that our auditors prefer 
for their protection to have the 
accounts submitted to the Rev- 
enue so that it can correctly 
certify a nil tax provision. 

The trouble is that, once you 
do this, the machinery of 
review will usually produce an 
estimated tax assessment 
before the normal doe date for 
corporation tax payment 
■ The reader whose question 
appeared (in edited form) on 
July 2 asked a specific ques- 
tion, which we answered. It 
related to an existing situation, 
so we did not deal with what 
arrangements might have been 
made instead. We referred the 
reader explicitly to the compa- 
ny’s auditor because we hope 
there will be a shareholders' 
meeting with the auditor to 
discuss modifications of the 
existing arrangements. 

There are inherent limita- 
tions to a free advisory service, 
and we always try to get read- 
ers to take advantage of profes- 
sional advisers who are 
already available to them. A 
brief suggestion of possible 
alternative arrangements, 
based upon limited data, can 
sometimes do more harm than 
good - particularly in a case 
like this one. where fellow ten- 
ants may have confliction 
ideas. 

Our replies are tailor-made 
for each reader's particular cir- 
cumstances. so far as we can 


Regarding a letter headed 
“Magnet loses attraction” in 
Briefcase of June 4/5. When 
these shares were given to ns, 
there was no indication of a 
value - so how can yon claim 
a capital loss if there is no 
starting point? 

■ If you contact the London 
Stock Exchange at Old Broad 
Street London EC2N 1HB, giv- 
ing the date on which you 
acquired the shares, it will be 
able to provide you with the 
share price as at the date of 
your acquisition. (Answer by 
Murray Johnstone Personal 
Asset Management % 

Lower tax 
credit 

Since when have public lim- 
ited companies been giving a 
tax credit of 20 per emit on 
dividends instead of 25? Also, 
for how many years is a fox- 

payer supposed to keep divi- 
dend tax vouchers and other 
tax records? 

■ Norman Lament, then chan- 
cellor of the exchequer, cut 
advance corporation tax to 20 
per cent in his March 1993 Bud- 
get. Generally, it would be wise 
to retain tax papers for seven 
years if there are likely to be 
any queries or reclaims 
involved. (Murray Johnstone). 

Exemption 
from tax 

I am a British citizen who has 
moved to Monaco for one fill! 
tar year. I have a few invest- 
ments that I would like to 
realise while overseas. The 
p>ain ones are offshore roll-up 
money market funds and zero 
coupon or deep discount 


bonds. It was my understand- 
ing when I bought these that 
my liability would be to 
income fox when I sold them 
(assuming that I was resident 
in toe UK). Are these taxable, 
bearing in mind my non-resi- 
dent status? 

■ Write to the Inland Revenue, 
Financial Intermediaries and 
Claims Office (International), 
St John’s House. Merton Road, 
Bootle, Merseyside L69 9BB, (or 
to your last UK tax office) and 
ask for a copy of the free book- 
let 1R 20 (Residents and non- 
residents: liability to tax in the 
UK). 

You wifi see from the booklet 
that if you are outside the UK 
for the whole of the 199495, 
you will be exempt from 
income tax on income (includ- 
ing capital gains treated as 
income) from sources outside 
the UK for this year. 

Investment 

advice 

Where I can get impartial 
advice about my investments? 
The majority are investments 
for growth and produce a low 
income. But I am in my late 
60s (with no dependants) and 
find I am in need of more 
income. I have not been satis- 
fied with previous advice from 
my hank. 

■ It Is a little difficult to 
advise you as we do not know 
the amount of your invest- 
ments. But investment advice 
can be had from solicitors 
authorised by the Law Society 
and accountants authorised by 
the Institute of Accountants. 

It could also be worth getting 
quotes and suggestions from 
two or three independent 
financial advisers so that you 
have a choice of approach and 
advice. 

Publications such as Planned 
Savings and Money Manage- 
ment, obtainable from news- 
agents, contain details of most 
of the major players in this 
market (. Murray Johnstone). 


MINDING YOUR OWN BUSINESS 

READERS ARE RECOMMNOED TO SB( APPROPRIATE PnOFEBSONAL ADVICE 
BB=ORE ENTERING INTO COMMITMENTS 

BUSINESS SERVICES 


BUSINESS SOFTWARE 

To advertise in this section pirate telephone ori-H 1 * JSOJ 
or write to Janet Krlluel at the Financial Times. 

One Southwark Bridge. London SEI 9HL or Fas S'.* JOtsf 


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CHARTS 


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BUSINESSES FOR SALE 


nn/TTADON FOR EXPRESSIONS OF INTEREST 
M PURCHASING GROUPS OF ASSETS OF 
•E.GJ- PAPER MAKUFACTURMQ OF WESTERN 
GREECE SJL* OF PATRAS. GREECE 

ETHMKJ KEPHALEOU SJL. Administration of Assets and UoDMies. of 1 Skndanlou SL 
Ath ena, G reece, in Its capacity aa Liquidator of -E.O.L. PAPER MANUFACTURING OF 
WESTERN GREECE SA. ■ company with Os rap rarer ad office tn Patras. Greece (the 
Company! presently under special iqiAMion accodtog ID the provisions of Section 48a el 
Law 1892/1990. tnvtes Warestsd parties to Sutra* w»vn twercy (201 days tram pubttcation 
of Ha nonce, novbimflng written mpressfans of interact tor the separate purchase of the 
IndusCrM comptexae ollhe Company m Patna axilnAegioA. 

BHEF MFORMA.TKM: The Company rat esobosnao m 1988 and was kwofcwd tn paper 
manuCaduring. The Company ceased to operate In 1991 and no personnel is currency 
employed. 

GROUPS OF ASSETS OFFERED FOR SALE: 

A. INDUSTRIAL COMPLEX IN PATRAS compratog buUnga with total area of 32£Um2 
and ratal vohraw at 295.751 m3 butt a) rand cf 48^1 Cm2: Cve paper maWng rsaettnee and 
other mactienfcal equipment and sewn plots alland totaling S.aa-Ure pfcs other asms such 
and fcanlure. equipment, bade marts, trade^n-ctoch, receivables, ate. 

B. INDUSTRIAL COMPLEX ON AEfitON comprtatog buefings tocefitog 2D.109m2 In ansa and 
a total volume of 200,683m3. butt on land of 84 £41 m2, one paper-making machine and 
after mechanical equipment and one plra of land of 3G3m2 plus other assets aueh as office 
fisntune. equipment, etc. 

SALE PROCEDURE: The sale of the Company's assets wit be by Public Auction tn 
accordance with the p l o vWone cl Section 48a of Law 1 882/1990 (as s^piemertad by article 
14 of Law 2000191 and artida 53 of Law 2224/94) and Bio terra set out In the invention to 
tender tor the highest bid tor the purchase of the above asseto. » be puofeshed to toe Greek 
and foreign press on the dales provided by Law. 

SUBMISSION OF EXPRESSIONS OF INTEREST - OFFERING MEMORANDUM - 
MFORMATTON: For the subrrtsskw of expressions of hfcresl and tor ootabting a copy of the 
Offering Me m o ran dum for each of the ebouo-manaoned groups od aaaata ptoase cortaa the 
Utjutittrt agent In Patras, Mr ftrntoios SimakH al 4W5 2» October St_ Pbms 282 22. 
Greece. ML +3M1-323J93, 320432. 422.004 or the Liquidator at toe Company ETHNM 
KEPHALEOU 8A. Admawwtron at Assets and UabBties al 1 Skoufantou St. 105 61 
Athens. Greece tel. <30-1-323.1484. toe *30-1-321.7905 |Atm. Mrs- Matte FrangeM). 


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VITI WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 



FASHION 


E ver since Adam and 
Eve clothed them- 
selves in Bg leaves, 
cross-dressing 
between the sexes has been a 
topic which is both risque and 
overplayed. The clothes yon 
wear define not only the type 
of person yon are, but also 
your sexuality. 

To give his female charac- 
ters freedom, Shakespeare 
would disguise them as men 
and let them loose an stage. 
But while Ganymede-Itosalind 
thinks she has the upper hand, 
Shakespeare's audiences 
would be laughing at her. A 
boy actor dressed as a girl, 
then disguised as a boy to 
dnpe her beloved was a popu- 
lar and effective way of chal- 
lenging apparent sexuality as 
defined by costume. 

With the arrival of the Japa- 
nese show Takarazuka at Lon- 
don's Coliseum, the challenge 


to clothes as definitive of sexu- 
ality has taken a much more 
modem turn. Members of the 
all-female cast train for years 
to earn a place in the com- 
pany, but only the most suc- 
cessful are chosen to play men. 
They immediately develop the 
distinctive Takarazuka quiff, 
and in doing so mark them- 
selves out as men who are 
women. 

Here is the opposite to the 
Shakespearean joke, and, con- 
sidering the Japanese patriar- 
chal society, one that is toler- 
ated remarkably openly. 
Except here, the raison d’etre 
of this particular sex change is 
to increase the women’s 
understanding of the role of 
men and thus to make the 
women into better wives, so 
that the dangerous joke is ren- 
dered harmless. 

This summer’s prevailing 
look of soft pyjama trousers 



Clothes’ sexual challenge 

Katrina Blandy on cross-dressing since Adam and Eve 


sharply offsets the earlier 
sharp-edged city suit Women 
in the 1980s who wore bold, 
distinctive suits to the board- 
room were issuing a definite 
challenge to their male col- 
leagues. These primitive dis- 
tinctions between the sexes 
have now blurred, so that 
fashion of the 1990s is more 
about the person you are, 
rather than the sex yon are. 

However, the challenge of 
cross-dressing remains. At the 
Central Saint Martin's 1994 
graduate show, Juliet Gatto 
showed a collection of human- 
oid Invaders. Aliens are usu- 
ally asexual, but Gatto was 
careful to mark out the sex of 
her model by making him 
promenade with a large penis 
on the front of his clothes. 
However tacky this may seem 
to some, it had a deeper pur- 
pose in explicitly flaunting 
what humans since Adam and 


Eve have been trying to hide. 

Visually, the point she was 
Fia klng is obvious: everybody 
knows that beneath their 
clothes they are either male or 
female. What Gatto achieved 
was not subtle bat it was effec- 
tive, because it focused on the 
symbiotic relationship 
between clothes and sexuality. 
Here, the issue of sexuality 
was unambiguously displayed 
on the outside of the clothes 
rather than hidden beneath. 

The child in the fairytale of 
the Emperor’s Hew Clothes 
points oat that the Emperor is 
naked. The child’s eye sees 
and acknowledges what adults 
all around fear to do. Naked, 
the essence of five Emperor as 
a man Is all the more on view. 
Yet the crowds around still 
believe him to be dressed until 
they are told otherwise. 

What clothes seem to do for 
sexuality or personality is to 



Dressing up: Adam and Ere 

refract and direct a certain 
attitude or posture. Women 
wearing suits or men wearing 
kilts are all making - or try. 
ing to make - a statement 
about themselves. The ques- 
tion is whether the wearer Is 
in control, or the designer. If a 
designer clothes you, rathe? 
than you wearing the clothes, 
then the passerby - modi like 
Shakespeare's audience or the 
child in the fairytale - is hav- 
ing the last laugh at your 
expense. 






John Pearse fletq in Ms Soho menswear shop: for customers who Rte verbal Jousting 


J ack Nicholson has been 
to London. Between 
dining at San Lorenzo, 
dancing at Tramp and 
sleeping at The Con- 
naught. the actor has been 
stocking up on a tew conversa- 
tion-piece suits. Nicholson is 
not to be found on Savile Row 
but in Soho, giving his high- 
profile custom to John Pearse 
of Meard Street 
Pearse must be a very suc- 
cessful man. for he does not 
regard politeness as a tool of 
his trade. One Imagines the 


sparring that takes place over 
the tape measure as he calcu- 
lates the jib of Nicholson and 
fellow celebrities Mick Jagger, 
Tom Cruise, Malcolm 
McClaren, Nicole Kidman and 
Mariella Fostrupp. for he sub- 
scribes to the tiresome “it's- 
cool-to-be-rude” style of badi- 
nage with customers, for fear, 
perhaps, that they will mistake 
his work For a service. 

His tailoring style is "lad- 
dish''. While he can offer the 
full gamut of classics - grey 
flannel. Prince of Wales check 


and Harris tweed - since his 
days at “Grarmy Takes a Trip" 
in the 1960s, he leans towards 
more attention-seeking tailor- 
ing, such as changeant velvet, 
Hendrix suits, pony-skin print 
shirts, horizontal pinstripes. 
and bookmaker checks. 

But he finds today’s rich 
rock stars of a certain age pre- 
fer his more conventional offer- 
ings. “You can get bored of 
being a fashion plate, and so 
you dress down in a neutral 
uniform.” The greatest compli- 
ment that Pearse can pay a 


customer is that “I don't recog- 
nise one of my own suits on 
them, it becomes part of 
them". He has cited Richard 
Ingrams as a pleasing example 
of this, in his signature, 
bashed-np corduroy suits. 

While most of Pearse’s cli- 
ents fall into the “performing 
arts and their hangers-on" cat- 
egory. he also caters for the 
business community. So if you 
can afford at least £700 for a 
suit, and like verbal jousting. 
Pearse will oblige. 

A similar counter-culture is 


served by the talented young 
tailor Oswald Boateng. Bat, 
while cutting the sharpest suit 
in the trade, he will ply you 
with old world courtesies. A 
talL athletic client is best 
suited to the Boateng treat- 
ment for he cuts suits with 
fork-prong narrow trousers 
and high-waisted coats. Both 
his male and female customers 
emerge from his Portabello 
Road studio looking like 
gloriously-coloured Daddy 

Loiiglegs. 

David Chambers, a jovial tai- 


lor based in Hertfordshire, will 
came to your home or office for 
fittings, and lists singer Bryan 
Ferry, designer Sir Terence 
Conran, artist Patrick Hugtes 
and gallery owner Tim Jeffries, 
among his clients. Chambers 
has a keen eye and a sore 
hand. He is also flexible, taking 
full advantage of the bartering 
school of business. Hamish 
McAlpine, the film distributor, 
swopped his much-coveted 
Ferrari for 28 Chambers suits. 
Prices start at £500. 

Mark Powell, another Soho- 


based tailor, specialises in nos- 
talgically-inspired suits, such 
as the new Edwardian, four- 
button coat favoured by musi- 
cian. Jools Holland and come- 
dian Vic Reeves. He is not only 
patronised by stars but also by 
stage companies requiring 
period costume. His imposing 
frame, shaved head and 
Michael-Gatoe-to-Alfle manner 
belie a courteous temperament 
John Pearse : tei 071-434 0733. 
Oswald Boateng: 081-964 W65, 
David Chambers: 0727-831 573. 
Mark Powell: 071287 5438 . • ' . 


Slipping in and out of style 


T o Ireland this week 
for an “in-depth” look 
at the world of Lycra 
in the company of a 
bevy of lissom fashion assis- 
tants. The fashion assistant is 
a breed unto herself. Paid a 
pittance, she nevertheless man- 
ages to make your very expen- 
sive designer suit look like last 
year's leftovers. 

She spends much of her life 
in cupboards, sorting through 
some of the world's most 
expensive clothes and this has 
taught her a thing or three. 

It means she can spot the 
provenance of anything sarto- 
rial, from a designer suit to a 
handkerchief, with all the dev- 
astating accuracy of a cruise 
missile. Thought you had 
picked a bargain to Surbiton? 


HACKETT 

LONDON 


Essential 
British Kit 

137-13* SLOAN E STREET 
LONDON SW1 
TEL; 0 7 l 730 3331 

K7 JER.MYN STREET 
FULHAM AND THE CITY 


Felt pleased with your under- 
stated buy from Tesco? You 
will not fool her. Her laser- 
beam eyes tell you that she 
knows just where you bought 
it and exactly how much you 
paid. 

If there is one thing she 
knows it is what is in and what 
is out While you are still work- 
ing out how to put together 
this year’s understated, natu- 
ral look (all white and floaty) 
she hag moved on and is into 
glamour. Her heels are high, 
her lipstick red, her hair piled 
high. 

This is no new- age mystic 
searching for inner truth (that 
was last year): this year's 
model is the dangerously bad 
and wicked vamp. She has 
come to out Of the flower-filled 


fields and night-clubs, prefera- 
bly gay, are now her natural 
habitat 

AO that sorting through of 
fashion cupboards (not to men- 
tion the odd chic gift from 
grateful fashion houses) has 
given her a confidence that 
belies her years. If she has a 
credo it is this - if in doubt 
wear black. Gathering for din- 
ner in one of Dublin's Jolly eat- 
eries (La Stain pa, very much to 
be recommended) we looked 
much like a widows’ coven - 
nothing but black as for as the 
eye could see (except tor my 
six-year-old New York number. 
“Oh, how lovely that you are 
wearing a print, ” said one). 

For those of you who are 
more than 17 years old, whose 
stomachs are less than wash- 


board Oat and who have been 
wondering just how you wear 
this year's tiny slip-dress, I will 
pass on to you the fashion 
assistants' secret 

Firstly, buy it in black. 
Secondly, get one of Hue’s 
Total Body-Shapers (£18.95 a 
time from House of Fraser 
stores). Made from nylon and 
Lycra Spandex this gives what 
in the trade is called “total 
body control" - everything 
from the top of the bosom 
down to the ankle. 

It Is no good protesting that 
this poses serious physical 
challenges for that is not the 
point - if you want to look 
good in a slip dress then, as 
one of the more voluptuous 
assistants pointed out, you just 
have to cope with the inconve- 


nience. If you are exceptionally 
young and exceptionally thin 
you can wear it with long 
stay-up stockings (Marks and 
Spencer’s stockings have the 
most staying power). 

For these who are aged over 
30 it may be more Instructive 
to observe what fashion assis- 
tants do when they graduate to 
being editors. Then they wear 
their flirty slip dresses in lay* 
ers (black, bien sur). The dress 
goes over a longer tube-like 
skirt, and over the dress goes a 
loose top and they add bright 
red lipstick and sexy, high- 
heeled, strappy shoes. That is 
this week's news. By the time 
you read it the fashion assis- 
tants may well have moved oil 

Lucia van der Post 


CAVENAGH S 

The most exciting, quality shirt and 'if,'. 
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WEEKEND FT IX 


HOW TO SPEND IT 


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in the hottest week London 
has seen for many a year, 
British mm are still going 
about their business the way 
they have since time 
immemorial - swathed in 
dark wooden suits. 

As the hot weather goes 
on it is worth knowing that 
there are some splendid 
bargains to be found in the 
sales. For instance, a few 
pieces from Marks and 
Spencer's splendid pale 
beige and stone summer 
coflection wfll be on sale in 
some of the larger stores. 

Look for the fashionable 
ingredients of the male 
wardrobe - the colfarless 
baggy linen shirts (£25 
upwards), the loose 
waistcoat (£30), the 
unstructured casual jacket 
(£79), the light linen/wool 
suits (£160) and the linen/ 
cotton beige jeans (£25). 

Christopher Brown's 

drawings (left) show how the 
basic elements can be 
combined to produce a 
summer wardrobe that can 
go from the boardroom (far 
left and right) to the most 
casual weekend picnics. 


Spectacles to put fashion freaks in the shade 


: £l 
1 \ \ 

.52 

m 



* j ! S3 




c 


Lucia van der Post tries out sunglasses which protect and look good 


Luxottfca h one of the good lens names to look out for - here Bmporio Arman frames, Luxotfica optics, £88 
from Emporio Armani stores, SeHrtdgea, U rodn and other good stores 


...% 










i*- >: "J- 






\ i • 


;V 



fonwteft of Bond Street, and Hamids 


hie Simple's hand- 
book* on specta- 
cles is in no doubt 
about what is the 
most important 
thing about them - “remem- 
bering where you left them 
last". True, true. Even now I 
am lamenting my cool blue 
Calvin Klein shades - they 
sum up everything that this 
year's sunglasses should be - 
and I have not the faintest idea 
where I last left them. 

The second most important 
thing is not, you may be dis- 
mayed to learn, the shape of 
the frames, but how much pro- 
tection they offer to the eyes. 
In these ozone-depleted days 
most of us are only too aware 
of what excessive s unlig ht can 
do to the skin but few of us are 
aware of just how much dam- 
age we risk to the eyes. 

Eye cancer, age-related cata- 
ract, age-related macular 
degeneration, ageing and can- 
cer of the circumocular skin, 
pterygium, photokeratitis - 
this is the gloomy roll-call of 
eye problems that those who 
flirt dangerously with strong 
sunlight might expect 

If this sounds a bit alarmist 
let me refer you to the work of 
optical company Fabris Lane 
international 

“Damage to the eyes," its 
eminent researchers, among 
them Professor Richard Young 
of the University of California, 
conclude, “is cumulative and 
therefore it is better to wear 
protective sunglasses from an 
early age and to continue 
through life to wear them 
whenever subject to bright 
sunlight for extended periods." 

While UVA, B and C rays are 
harmful, the real badriie in the 
solar spectrum is ultraviolet 
light and it is all the more dan- 
gerous for being invisible. 

Cheap sunglasses bought off 
market stalls and in some 
chain stores are little more 
than fashion accessories - but 
highly dangerous ones - for 
some of the lenses are simply 
tinted and offer no protection. 

Fortunately, it is usually 
very easy to check which 
glasses offer proper protection 
and which do not - there is 
now a British Standard (2724), 
which means that, at the very 
least, the eye will have basic 
protection. 

Within that standard there 
are three different levels of 
protection - if for use just as a 
fashion accessory (sashaying 
into Joseph, lunching in Le 
Caprice, at Academy Awards, 
that sort of thing) then the 
lenses should transmit 
between 29 per cent and 100 
per cent of light (meaning that 
the lens will get paler as the 
light gets darker). 

Then there are sunglasses 
which transmit between 8 per 
cent and 29 pcs: cent of daylight 
and these are suitable for driv- 
ing in strong sunlight 

Most protection of all is 
offered by those which trans- 
mit only between 3 per cent 
and 8 per cent of light and 
these are not suitable for driv- 
ing butare intended for skiers, 
mountaineers and sailors. 

Ray-Bans seem to survive 
the ups and downs of fashion's 
fickle favours. If you own and 
wear a much loved pair you 
will dearly not be at the cut- 
ting-edge of fashion but you 
will be able to rest assured 
that yon are wearing a classic. 
They have the enduring cachet 
of pearls and ChaneL- 

Last year’s oblong frames, 
most fashionably done by Cut- 
ler & Gross, are this summer, 
says my style-adviser, very, 
very square. (Sod’s law being 
what it is, these will of course, 
be the ones you have failed to 

lose.) 

This year’s look centres on 
thin metal frames, gently oval 
in shape which, coincidentally 
and happily, seem to flatter 
most faces. Qip-ons (even for 
those with 20/20 vision - they 
wear dip-o ns over frames with 


plain glass) are what the really 
cool set is wearing. 

This is one of those splendid 
turns of the wheel of fashion - 
when clip-ons first came in 
they were strictly for the geri- 
atric set, a reminder of the 
passing of time and the wither- 
ing of age. 

Now what once was naff has 
become big business with even 
some of those who normally 
wear contact lenses abandon- 
ing than for the summer in 
favour of prescription lenses 
and clip-ons. 

Calvin Klein does clip-ons 
with different coloured lenses 
- normally £140 for the frame 
(currently £105 in Selfridge’s 
s umme r sale) and £40 for the 
clip-ons. Emporio Armani, too, 
is rushing in vast quantities of 
its little metal frames and 
clip-on attachments. 

Anglo-American is one of the 
great names in what the trade 
calls “eye-wear". Initially 
famous for its horn-rimmed 
glasses, made from xylonite 
and cellulose nitrate in imita- 
tion tortoise-shell, and given 
clout among the glamour set 


/ 


& 



Giorgio Arman! has same sptom&fiy studious looking tNn metai-framed 
ovals with efip-ons, £130 tha pair. From good opticians and Harrods 
and Setfridges 


when Harold Lloyd and Buster 
Keaton took to wearing them, 
they have long been estab- 
lished as wip erf the first places 
of call for those who would be 
both safe and fiashirmahlp 
Anglo-American has added 
proper optically-sophisticated 
sun glasse s, mnhidmg Grade l 
optical quality plastic lenses 


and impact resistant organic 
glass, to a wide range of 
frames. 

It has some 10 different 
frames with clip-ons which 
exactly match the frame in 
metal and four in acetate. 
Frames start at £60 and its clip- 
ons are £45 to £49. 

If your summer is going to 


include lots of energetic sport- 
ing activities then you should 
look out for Fabris Lane’s 
Eta lia Sports range which uses 
polycarbonate safety lenses of 
great strength. 

Fabris Lane also offers other 
specialist lenses - Advanced 
Graphite Driving lenses 
(blocks ultra-violet light com- 
pletely) yet retains good visi- 
bility and polarised lenses 
which eliminate up to 90 per 
cent of the glare reflected from 
flat surfaces such as the sea, 
snow and wet roads. 

Those who are unaccus- 
tomed to the kind of prices 
designer frames tend to attract 
might like to look at the Maz- 
zucchelli range. It does for sun- 
glasses what Warehouse and 
Miss Selfridge do for fashion - 
delivers the latest designer 
look at a fraction of the 
designer price. 

For just £22JiO there is pair 
of the slightly oval, thin metal- 
framed frames with good pro- 
tective lenses which have all 
this summer's fashionable hall- 
marks. 

•Thames and Hudson, £6.95. 


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The threat on France’s doorstep 

Janets Robinson looks at the Spanish wine bargains available 


W hich country do 
French wine produc- 
ers see as their great- 
est threat? 

The average British wine drinker 
might think Australia. Her (yes, she 
is female) American counterpart 
might think north, or even south, 
America. But the answer is Spain. 

Spain is right on France's door- 
step and not only has 20 times more 
vineyard than Australia, and five 
timos more thaw the US. but half as 
much again a & France. Only its 
water shortage keeps Spain in third 
place as a wine producer behind 
France and Italy. But imagine if 
New World tanking were ever to 
prevail within Europe and allow 
widespread irrigation . . . 

There is certainly no shortage of 
Spanish wine bargains available in 
Britain, although there tends to be 
a curious polarisation of supply: 


either dirt cheap liquids carefully 
designed to meet British taste and 
price points (sic), or intensely ambi- 
tious wines which set their cap at 
Madrid's connoisseur class. 

Ribera del Duero has provided the 
Madrileflos with Spain's most fash- 
ionable, concentrated, well -struc- 
tured reds. Vega Sicila (Laymont & 
Shaw, of Truro, Cornwall) and Pes- 
quera (John Armit of London WU) 
have been the standard bearers, bat 
producers such as Sams's Dehesa de 
Zos Canoaigos are putting on the 
pressure. 

British wine drinkers are now 
being treated to a much, wider vari- 
ety of names from this promising 
wine region at less exalted prices 
(and, it has to be said, slightly less 
exalted quality). 

Senorio de Nava’s good value 
wines are relatively widely avail- 
able - the harmonious and powerful 


1987 is £5.69 at Asda and £559 at 
Fullers wine shops, while it is possi- 
ble to find the still slightly tough 
1889 reduced from £5.69 to £4.99 
until today at some branches of the 
Coop. 

The Wine Society, of Stevenage, 
Hertfordshire, has the rich and pow- 
erful Callejo 1988 at £655. Its Span- 
ish selection is looking particularly 
interesting at the moment. Marques 
de Alella Cldsico 1993 at £455 is a 
lively, super-tingly, lemony, dry 
white also made just outside Barce- 
lona, which would make a refresh- 
ing and genuinely interesting aperi- 
tif and could withstand fierce 
chilling for a picnic. 

The society’s classically rustic 
Masia Barril Tiplco 1991 Priorato at 
£5.75. on the other hand, is just the 
job for those with fond memories of 
blockbusting, old-fashioned, sun- 
drenched red Ch&teauneuf-du-Pape. 


Hie typical Priorato red should the- 
oretically have 13.75 per cent alco- 
hol. This one has 15. 

In many ways the rugged, slatey 
slopes of Priorat(o) constitute 
Spain's most fasc inating red wine 
appellation at the moment. A series 
of small-scale investors in Clos This 
and Clos That have made ambi- 
tious. long-term red wines which 
combine Catalan heritage with rec- 
ognition of what the international 
wine collector seeks. Moreno Wines 
of London W2 and W9 have Clos 
Mogador in their exceptionally 
interesting Spanish range (see also 
their GuiLbenzu reds from Navarra 
from £459), but it Is £17.49. 

Clos Mogador probably ought not 
to be broached until the next cen- 
tury, but Clos DoH 1990, not to my 
knowledge available in the UK, 
manages to combine the promise 
with current pleasure, albeit in no 


more than 2,500 bottles, filled from 
some absolutely top quality barrels. 

Clos Dofi is made by a refugee 
bum Rioja, but Rioja has woken up 
from its dream of first-growth prices 
and can now offer the odd genu- 
inely interesting bargain, such as 
Oddbins’ Puelles Rioja. At £3.75 this 
scented, full fruity red wine is one 
of those new riojas that has nothing 
whatever to do with the archetype, 
being juicy rather than oaky. 

Oddbins' also has the more serious 
Palario de la Vega Cabernet Sau- 
vignon 1991 Navarra at £6.99. It is 
full, deep, with lots of oak, but very 
well put together. Strike before 
prices rise. 

Today is the last day of the Co- 
op's offer of the appley dry and per- 
fectly acceptable light white Gali- 
cian Valle de Monterrey at £159, 
although even at the usual £2.49 It 
is a good buy. 



The great north-west seafood pilgrimage 

An endless variety offish makes Galicia Spain s seafood locker. Nicholas Woodsworth eats his way around 


A good meal is 
more than just 
good food. Its 
enjoyment 
derives from 
many other things - the sur- 
roundings. the occasion, the 
company, our own mood on sit- 
ting down before a table. There 
are technically accomplished 
dinners 1 have had that I 
scarcely remember. On the 
other hand there are many 
less-than-accomplisfaed meals - 
some drunken, some last- 
minute, some downright bad - 
that I recall with intense plea- 
sure. In the end, cooking is a 
relative thing the success of 
which depends as much on the 
diner as on the dined on. 

This is by way of introducing 
an account of some meals I had 
in travelling through Galicia in 
north-western Spain. More 
than anywhere else I have 
eaten recently, this is a place 
where, together, food and stu> 
roundings combine to produce 
meals of strong and unforgetta- 
ble flavour. 

Galicia - isolated, rural, and 
battered by Atlantic weather - 
has a cuisine all its own. Peas- 
ant fanning in the green 
valleys produces a limited 
range of crops - un typically 
"northern’' for Spain - such as 
cabbage and turnips. By con- 
trast the waters off the rocky 
and indented shoreline of its 
rias, or drowned river valleys, 
produce a wealth of ocean pro- 
duce. 

Scallops, mussels, crayfish, 
crabs, eels, oysters, squid, 
shrimp, octopus and an endless 
variety of fish make Galicia 
Spain's seafood locker. Every 
night special trains and fleets 
of trucks leave Galician ports 
so that next morning fresh sea- 
food deliveries will show up 
everywhere from chic Madrid 
tapas bars to tiny Andalucian 
villages. Some critics rate Gali- 
cia's rias as the source of the 
best seafood in Europe. 

But Galicia itself is no centre 
of culinary cultural refinement 
- in my drive from Santiago 
northwards through a dozen 
fishing ports I did not once see 
a restaurant that might be 
termed sophisticated. Wet 
weather puts off tourists and 
local underdevelopment dis- 
courages any kind of preten- 
sion. I ate on paper tablecoths 
in simple restaurants, often to 
the accompaniment of a blar- 
ing television. So much the 
better. What counts here is the 
freshness of the food and a 
chance to watch ordinary Gali- 
cians go their everyday way. 


THE SANTIAGO MARKET 
Santiago de Compostela has 
been the site of Europe's great- 
est religious pilgrimage for 
more than 1,000 years. Its 
medieval covered market is 
also a good place to begin a 
culinary pilgrimage. It is like a 
large shopping centre straight 


W hen rich and 
famous. Salvador 
Dali, the surreal- 
ist artist, walked 
the salons at Madrid's Palace 
Hotel leading an ocelot and 
surrounded by admirers. 

Writer Ernest Hemingway 
drank his famous martinis 
there and film stars Orson 
Welles, Ava Gardner and the 
spy Mata Hari are among the 
celebrities who have slept, 
eaten, drank or made love 
there during its 80 years. 

Bullfighters would leave the 
front door of the Palace 
dressed in full costume ready 
for the fray- Belmonte, El Gallo 
Manolete...the great names of 
the corrida were cheered from 
its portals. 

I did not glimpse an ocelot or 
a matador whan visiting ear- 
lier this summer but, by way of 
drab compensation, the hotel 
was packed with Americans, 
Japanese and Italians in town 
for the festival of Madrid’s 
patron saint, San Isidro. 

It was nearly Impossible to 
get a table in La Cupola, the 



from the middle ages - long, 
stone-paved alleys and row 
after row of arcades mimic the 
aisles of a modem supermar- 
ket. 

But there is nothing modem 
here. Whole animals hang from 
hooks. Skinned sheep's heads 
stare at you. Squat, head- 
scarved Galician farmers' 
wives work with thick, field- 
roughened fingers to arrange 
bunches of chives into precise 
piles on wickerwork baskets. 
Plastic wrapping, polystyrene, 
and clerks in white jackets 
might never have existed. 

All the aisles were piled high 
with produce from the sur- 
rounding countryside, but my 
favourite was the cheese aisle, 
where each cheese rested softly 
on straw-covered wooden 
racks. 1 bought a queso San 
Simon from a toothless, grey- 
haired granny in black widow’s 


weeds. It was a wonderful 
cheese - creamy coloured, 
large, and conical in shape. 
Such cheeses are much prized 
in Galicia - when I told the old 
woman that I was taking my 
cheese home with me I 
received 10 minutes of instruc- 
tion on its care. 

What did not last more than 
five minutes, though, was the 
fresh tuna and sweet red pep- 
per empanada I also bought. 
Empanadas are the Iberian ver- 
sion of Cornish pasties, and 
very popular. Downed with a 
glass of cool Galician apple 
cider, they make a delicious 
market-morning snack. 


EL BOMBERO 

There is nothing fancy about 
El Bombero. a small upstairs 
restaurant overlooking a nar- 
row Santiago street. From my 
table I could watch three gen- 


erations of family members at 
work in the kitchen. A small 
child, getting in everyone's 
way, played about the floor on 
hnnrifi and knees. 

But homely restaurants 
make homely food, and a caldo 
gallego was just what I needed 
to ward off the raw air and the 
Atlantic rain pelting down out- 
side. A caldo is the simplest of 
peasant fare, a thick soup of 
cabbage, potatoes, white beans 
and turnips in a meat broth. Its 
popularity is attested by the 
dark green cabbages seen 
growing high on thick stalks 
outside every rural house in 
Galicia. 

The merlxua a la cazuela or 
hake stew which followed is 
just as humble a dish, and just 
as delicious. Prepared in a 
small terracotta bowl that 
came to the table bubbling hot, 
it is a hearty marriage of Gali- 


cian products from sea and 
shore: thick slices of hake 
baked in a fresh tomato sauce 
with peas, potatoes, onions and 
savory chunks of cured ser- 
rano ham. I walked out of El 
Bombero ready to take on any 
kind of weather. 


SAN FRANCISCO 
The roadside San Francisco 
restaurant near the coastal vil- 
lage of Laura, has a vast collec- 
tion of key chains mounted in 
glass cases on the walls. It is 
one of the more arcane 
branches of collecting, and I 
would have preferred to see a 
menu. But no. The lady of the 
house asks you if you would 
like such-and-such a dish. If 
you would, you get it. If you 
would not, you get it anyway. 

Did I want lenguado. she 
asked. I had never heard of it, 
and shook my head. Did I want 


a pitcher of Ribeiro? I had 
never heard of that either, and 
shook my head again. Len- 
guado and Ribeiro were duly 
produced, and in this way 1 
enjoyed a delicious meal of sole 
and the local wine, a refresh- 
ing change from thw heavier 
wines grown in hotter, sunnier 
parts of Spain. 


PLAYA DE BALEO 
It does not much matter what 
you take on a picnic to the 
Galician seaside, it is all so 
beautifully wild and deserted 
you cannot help enjoying the 
simplest of food. Crusty Span- 
ish bread, savoury chorizo sau- 
sage, cheese, tomatoes, a bottle 
of Ribeiro; in these surround- 
ings what more could you 
want? I am afraid, though, that 
after half-a-dozen picnics on 
half-a-dozen glorious Galician 
seashores, I have become seri- 


ously addicted to anchovy- 
stuffed olives. They are diffi- 
cult to find In London. 


GAMARINAS 

There are dozens of fishing 
boats in the port at Camariflas. 
But when I arrived a heavy 
three-day blow meant there 
was nothing left in O Meu Lax, 
the tittle fish restaurant deco- 
rated with photos of the local 
football team and its cups and 
trophies. 

Off then, to the local ham- 
burgveseria, a place so unas- 
suming that this was the only 
name marked on tile sign out- 
side. But so many Galicians 
have emigrated to Argentina 
and then returned home that 
Argentine meat-eating habits 
are well established here - you 
will find the same grill houses 
in rural Galicia as you will in 
downtown Buenos Aires. Ham- 


Appetisers 

Hemingway did drink martinis 


hotel's Italian restaurant, cur- 
rently one of the most popular 
places in town for being seen. 
Curiously, for such a public 
venue, it is also where Spanish 
politicians meet to plot. The 
atmosphere is refined yet inti- 
mate and the impression is of 
more than lamb chops being 
cooked up there. 

The Palace plans to host 
chefs for four to six-month 
periods from different areas of 
Italy to cook with Paco Rubio, 
the hotel's executive chef. And 
although it may seem odd to 
eat Italian food in the Spanish 
capital, food is available there 
from almost every country in 
the world - in addition to 
every Spanish region. 

Wben in Madrid it is usually 
advisable to order fish - some 
of the freshest and the best 


finds its way to the capital - 
and the poached fillets of sole 
with a salsa arpriadasa were 
elegantly presented and compe- - 
tently cooked. 

Milk-fed lamb and veal are 
especially recommended and 
desserts Include dramisu, car- 
rot cake with cinnamon 
ice-cream, apple tart with 
poppy seeds and blancmange 
with fresh fruit coulis. 

The average price of a three- 
course meal is PtafSjMQ (£30) to 
Pta6,50Q, plus tax. If that 
sounds too high a price then 
opt for breakfast. Anyone who 
is anyone can be seen power- 
broking over the yellow table- 
cloths between 7.15am and 
10am. 

There are splendid crois- 
sants. breads, fruits, cold 
meats, smoked salmou, and 


competes available and two 
chefe will cook, in the dining 
room, almost anything to order 
- even bacon and scrambled 
eggs. You can enjoy a glass of 
cava if you can face sparkling 
wine before 10am in the morn- 
ing - and, it seems, many can. 
Breakfast costs from Pta2.150. 

■ Information: The Palace 
Hotel Plaza de las Cortes, 28014 
Madrid is a member of Leading 
Hotels of the World Reserva- 
tions can be made in the OR by 
dialling 0800 181 123 toll free. 

Jill James 

■ The dowdy, boy-it-once-a- 
year-for-the-Ln-laws-at-Christ 
mas image which sherry has 
in Britain is in stark contrast 
to the way it is seen In Spain. 

Dry fino sherries, served 
well chilled, are immensely 


popular with the moneyed 
Spanish young who appreciate 
the wine’s adaptability, espe- 
cially with tapas. 

For a characteristic bone-dry 
fino, try Lnstau's Puerto Fino, 
around £755 from Gateway, 
Oddbins or Thresher; or the 
ever-popular Ho Pepe which is 
sold for about £7.50 from most 
off-licences and supermarkets. 

An alternative to fino is 
manzaniila, which is basically 
the same dry sherry which has 
been aged near the sea at San- 
lncar de Barrameda. To be 
authentic, manzanilla should 
have a sea-sait tang coupled 
with the dryness of green 
olives. Barbadffio, £4.99 from 
branches of Arthur Rackham 
and The Vintner, is a good 
example. 

Amontillado is old fino. As 


it gets older it gets increas- 
ingly natty in flavour. Natu- 
rally, amontiDado is bone4ry, 
dark from age and higher in 
alcoholic str e ngth than fino. It 
used to be the tradition to 
sweeten up amontillados for 
the British market and Har- 
vey’s 1796 is a monument to 
this old style. If yon want to 
try an uncompromising old 
amontillado try Valdespino's 
Coloseo (Lea & Sandeman, 
071-876 4767, £1955). 

Anyone looking for some- 
thing a little less intense 
might prefer Alcazar from 
Bobadilla (£7.25 from Moreno 
Wines of Paddington 071-723 
6897). 

Olorosos are generally softer 
than amontillados. Oloroso 
means fragrant and the wines 
are marked by a more immedi- 


here 


ately appealing; sweet, nutty 
bouquet A superb unadulter- 
ated oloroso is Aposioles from 
Gonzalez Byass (£15.99 from 
Oddbins). The best oloroso I 
have drank is the finest dry 
oloroso vintage 1963 from 
Gonzalez Byass, which costs a 
hefty £65 at Harrods and Self- 
ridges. Giles MacDonogh 

■ A bold attempt to bring 
Madrid chic to a world familiar 
only with tapas is the restau- 
rant Albero and Grana at 69 
Sloane Avenue, London. SW3. 
(Tel: 071-225 1048/9). Sadly, only 
the tapas wing of the enter, 
prise seems to flourish and the 
few diners in the restaurant 
are obliged to put up with the 
booming bass of the music 
from the bar. Albero & Grana 
is well worth a look, not least 


burgers be damned, said L 
Humming a tango, 1 feasted 
instead on sticks of pindtos 
morunos. grilled marinated 
pork doused in a fiery, garhe- 
based hot sauce. 

The wind dropped, the boats 
went out, O Meu Lar was back 
In business, and so was L To a 
television-roaring of Zaragoza 
playing Vigo, a Galician team, 
for the national football cham- 
pionship, 1 tucked into fat 
orange ria mussels in escabeche 
sauce. By half time I had 
moved on to calamar salad and 
a bowl of cldpirones. small 
stuffed squid swimming in a 
sauce of their own ink. To 
great howls of despair. Vigo 
filially lost on sudden-death 
penalties. Everyone else in 0 
Meu Lar was destroyed. Rather 
ashamed, I walked out feeling 
like a winner. 


MALPtCA 

All Mai pica, once a busy Span- 
ish whaling port, is mad about 
the ocean. 

Elderly men and children - 
those too old or too young to 
be out on the sea - clamber 
about on the rocks at low tide. 
They poke around with nets 
and hammers and sticks, 
looking for octopus, moray 
eels, mussels, bait worms, 
nasty-looking but highly tasty 
clumps of goose barnacles, and 
the spiny little rock fish that 
make such good soup. 

Down at the harbour, young 
men set out daily on the high 
tide, heading for the fishing 
grounds in little wooden boats. - 
And when the Ave Marina, the 
FJor de Espafra, the Maria Mer 
cedes, the Jesus Miguel and 
the rest of the fleet returns 
home, squads of short, heavy- 
set women await them on the 
quay. With rubber boots 
squelching and the arms of 
their jerseys shoved up to ti» • 
elbow, they heave and haul at 1 
boxes of fish and tubs of squid. 

You can dine on vast plates : 
of caldezm in 0 Burato, a res- 
taurant not far from the har- 
bour where the walls are cov- 
ered with pictures of Christ 
and Virgin framed tn scal- 
lop shells. And if there is a 
little spare time between 
courses, you will see the three 
elderly waitresses who wort 
there gather in the kitchen to 
recite their Hail Marys. 

Even more uplifting is to sit 
at twilight by a window in 0 
Pescador, the fisherman's bar 
perched over the port, and 
order a tapa of grilled shrimps 
or fried octopus. Inside, in a 
blue fug of cigarette smoke . . 
the conversation is loud, tie 
laughter raucous, the sound of 
dominoes being slapped down 
on tables by groups erf whis- 
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Outside, seagulls screanu boats 

bob, and ocean waves surge 
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TI MBS WEEK FNir. n .1 v 16/JULY 17 1994 


The Silk Road’s 
route to a 
living laboratory 

F InHv Ur ^^ pres " Paining of bad conditions and class traitor and were served 
n?hiw » . avel Iow W- A bar In a vault sells green tea and sweets. After 
^? rt western drinks and cigarettes, some time, the curator of the 
*“*“ “ On the stools, two young museum came in and showed 


TRAVEL 


F ew tourists pres- 
ently travel 
Uzbekistan's part 
of the Silk Road - 
through Khiva, 
Bokhara and Samarkand to 
Tashkent Countries ending in 
"stan" give off an impression 
of danger now. enough to deter 
from the poetry erf the naw ffi 
of the road-dties. 

This is a shame, for the Silk 
Road is not merely a parade of 
cultural artefacts of extraordi- 
nary beauty and power strong 
along a former caravan route 
which the Chinese pioneered to 
sell their unique commodity 
before the birth of Christ, but 
also a living laboratory of the 
retreat, and survival, of the 
road's latest civilisation, the 
Soviet one. 

Khiva, from where it is best 
to start, is in the north-west of 
the long strip of Land called 
Uzbekistan, and is a muse um 
Its walled core has few inhabit- 
ants, bat a welter of madrasas 
(Moslem seminaries), mosques, 
palaces, harems and dungeons. 

The Khivan khans were, 
according to the Soviet-era 
museum displays, connoisseurs 
of cruelty: they embedded vic- 
tims in “bug pits" of scorpions 
and ants, impaled them on 
spikes, executed and strangled 
them, threw them from the 
towers of mosques and fed 
them alive to beasts. 

On some accounts, they con- 
tinued to do at least some of 
tills until deep into this cen- 
tury. Gustav Krist's marvel- 
lous, John Buchan-esque mem- 
oir, Alone Through a Forbidden 
Land, records executions by 
throwing from a mosque tower 
as late as 1920. In that year, the 
last of the khans left before the 
Bolsheviks got him and moved 
to Afghanistan (his son fetched 
up as a Soviet army general). 

Most of the line of 47 khans 
lived inside a fortress - the 
Kunya Ark - within the walls, 
where the harem , the mint and 
a mosque have been restored. 
Finer is the Tash Khauli, or 
stone palace, commissioned by 
the 37th khan, ADakuli, who 
commanded to be built a pal- 
ace which still dazzles with its 
inventiveness and colour. 

In the main courtyard, the 
rooms for the legal wives lie 
along one side, next to the 
khan's own rooms; opposite, 
the rooms for the 40 non-iawful 
wives. Meok Kasmaodov, a 
local man who did a fair job as 
a guide, says that "because 
they were on the sunny side, 
they often grew tired and 
sometimes sick - at which the 
khan would throw them out". 

There is little sign of a reli- 
gious revival, though madrasas 
are being brought into new ser- 
vice at a great rate everywhere 
and Islam is close to a state 
religion. One of the largest 
madrasas has been re-cast as a 
hotel. The manager looks very 
much like Libyan leader 
Muammer Gad afft and tries to 
charge $50 for a badly con- 
verted cell with a tap and a 
broken toilet 

In the restaurant next door, 
the tables were taken up with 
on Algerian -Russian-Uzbek 
crew leisurely filming what 
was said to be a promotional 
film. They stayed up much of 
the night for a union meeting 
in the hotel's forecourt com- 


plaining of bad conditions and 
low pay. A bar in a vault sells 
western drinks and cigarettes. 
On the stools, two young 
Uzbeks sat and swayed deli- 
cately to the Russian and 
Uzbek pop music, eyes shut. 

The local children were vora- 
cious for gum or money, and 
threw stones at one companion 
who parted with neither. But a 
wedding procession in the mid- 
day heat was a showcase for a 
marvellous dance from an 
elderly man, pirouetting 
gravely before a young couple 
who walked slowly down the 
main street, the bride with 
grim face, the groom snigger- 
ing with his best man. 

A little bus to get us to Bok- 
hara bounced through the 
gathering dusk across the 
southern edge of the Kizyl 
Kum desert Bo khar a also has 
an ark (citadel), which juts up 
out of a leafy square, and 
intide is a museum of exqui- 
sitely made Korans and the 
apartments and courts of the 
caliphs whose arrogance 
caused all supplicants and 
ambassadors to approach on 
all fours and walk out back- 
wards. 

On the wall a little pie chart 
shows that “before the revolu- 
tion, the richest familtes in the 
city controlled 87 per cent of 


John Lloyd, on 
the road from 
Khiva through 
Samarkand 
to Tashkent 


the land; the peasant*, 13 per 
cent”. The Bokhara bug-pit 
housed two British officers, Lt- 
Col Charles Stoddart and Capt 
Arthur Connolly, in the early 
1640s. They were executed 
when the latter refused to con- 
vert to Islam. 

Our guide was a russified 
Uzbek woman named Zinai 
Ashurova who, in Bokhara's 
oven-like temperatures, had 
the fondest memories of her 
time in a college in Novokuz- 
netsk, a - to my senses - 
industrial hell-hole of a town 
in southern Siberia built round 
a vast steel plant “The people 
there are so warm, so welcom- 
ing," she said. In the grounds 
of the Ark, most other sight- 
seers were girls from outlying 
villages in loose dresses of 
brightly-coloured silk, giggly 
and silly before the western 
strangers. 

Ashurova proposed an excur- 
sion to a little museum she 
knew “where you can try on 
clothes”. It was, of course, a 
softening-up course for shop- 
ping, but more or less worth it 
The museum was in a private 
house, preserved; Shurova 
described It as a millionaire's 
house. In fact, as I was later 
told, it belonged to the family 
of Kodla Oghli, or Kojaev. a 
man of wealthy family who 
turned communist and who in 
1900 assisted the Bolsheviks to 
expel the emir and the bour- 
geoisie. Later he became first 
secretary of Uzbekistan, and 
was executed in the late 1930s 
by Stalin. 

We sat in house of the 



i pmm - 








WEEKEND IT XI 




class traitor and were served 
green tea and sweets. After 
some time, the curator of the 
museum came in and showed 
us clothes, inviting us to try 
them on so that we were 
dressed as Uzbeks of property. 
Her husband, a handsome, lan- 
guid man, assisted (only men 
can dress men in Moslem cus- 
tom). The rooms were splendid. 
In one, a vast old gramophone 
declared it to have been the 
chamber where the women of 
the house danced together of 
an afternoon. 

Taken for Jews In the street, 
we were led to the town’s syna- 
gogue by its caretaker. It was 
two medium-sized rooms in a 
sagging house, with the 
prayers In large letters on the 
walls and the raised pulpit in 
the middle of the room. The 
tables were covered with tea 
bowls and little teapots. The 
caretaker said that 400 Jews 
only remained from a commu- 
nity of many thousands. Later, 
in the market, a trader who 
introduced himself as Jewish, 
said there were 2.000 Jews, 
“but leaving fast” - as from 
evepwhere in the former 
Soviet Union. 

In the local art gallery, a 
young artist named Bachman 
Avezov sold me an illustration, 
and himself guided us to the 
large Kalyan Mosque, and to 
some of the fine - but deserted 
- old madrasas. An Uzbek, he 
studied in Leningrad (as it 
then was) and married a Rus- 
sian. His wife found Bokhara 
provincial and hot, and left 
him with their son to live in 
Norilsk in the Arctic circle; he 
remarried. 

He fears that a revival of 
religion will narrow the free- 
dom artists eitfoy in a still 
largely secular if (compara- 
tively) mildly despotic state. 
“Art has no boundaries,” he 
said, showing me a book of 
avant garde art he had just 
bought, in which Uzbek and 
Russian artists were displayed 
together. 

(“Mildly despotic" deserves 
an explanation. The country is 
run by a president, Islam Kari- 
mov, the former Communist 
Party first secretary, who rou- 
tinely throws opposition lead- 
ers into jail. He recently sent 
the editor of an opposition 
newspaper, a man in his late 
50s, to hard labour in gold 
mines for five years. Diplomats 
in Tashkent credit Karimov 
with being hard-working and 
concerned for the future of his 
country.) 

Another 300-plus kilometres 
of bad road, and there is 
Samarkand, where the mauso- 
leum of Tamberlaine - Gur 
Emir, the Rulers’ Tomb - is 
being restored by lethargic 
workers and the guard, for 
about $4, took us to the real 
burial vault of the tyrant 
under the false one he built to 
deter disturbers. 

He told us the well-worn tale 
of the Russian anthropologist, 
Mikhail Gerasimov, who - 
defying the curse laid upon 
grave-openers - exhumed the 
body on the night of June 22 
1941, to be told within minutes 
of doing so that Hitler, goaded 
to fury by the insult to his 
fellow mass murderer, had 
invaded the Soviet Union. 

But the glory of Samarkand 



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A mausoleum, mosque and minaret in the waged museum at the heart of Khiva' 

and of the road is the Registan: — ■■»■■■ — — — 

a square formed on three sides 
by the soaring arches of mad ■ - 

rasas, of a form and colouring 
(mostly restored) which define FLIGHTS 

space in a way not found in — 

Europe. Behind the vast arches 
of the entrances are the ribbed 
domes of the masques splayed 
out from the central apex like 
tensed muscles. Inside are 
some of the loveliest rooms in 
the world, some restored and 
well preserved, others 
neglected. In the yards, loung- 
ing young men entice you to 
their stall by shouting, and 
play the awful local pop on 
portable tape machines. 

One last bone rattle to Tash- 
kent Uzbekistan's capital was 
wholly destroyed by a series erf 
earthquakes in 1966 and rebuilt 
as a model Soviet city. It is 
green, with more working 
fountains than others of its 
kind, but dull, too, with no fine 
buildings. — . 

In the squalid airport men CAYMAN 

and women humped huge 
sacks of fruit and vegetables; ISLANDS 

merchants with low-price tick- — 

ets were taking produce on a GRAND CAYMAN 

3%-hour flight to Moscow. Luxariowz&sbedroonw , 

Theft from gardens is now coB<tomimBro«iqwci|MrtofMwjow LZ 

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prices which the produce com- Swim, snorkel, dive, fish or jttsi rebx in 
mands in the Russian markets. Iheanu. Puny equipped with daily maid 5 

In the main museum we Saw scrvkx - 30* oKour nUraoive tali rates 
a jumble of painHnff ia many in „ for direct booking. Oil Sharon 
tbe Soviet K-aJte strap- 

ping Uzbek cotton workers and — |M ■ 

soldiers, patient old men's CRUISING 

feces, wooden still lives. The 

handicrafts, by contrast, are 
marvellous: embroidered kho- 
lats (men's gowns) which took 
five years of a woman’s work- 
ing life, covered in intricate 

designs in gold thread. ow» m a ran. a*** y^ci*. v, 

In the Hotel Uzbekistan, we P ^ v 1 P r 

found another wedding. The tus w-T an 

young women danced grace- tabsi ♦wotnamhowj C 

fully to the raucous din from 

the loudspeakers; the men pay 

them, and they give the money ITALY S= 

to the bride. To our table came ! F*jj 

a drunken waitress. A few r 

moments before she had rudely TU SCANY 

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She remembered her mother, 

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Ark fortress and town at Bukhara 









XII 


WEEKJENTJ FT 


FINANCIAL TIMES WEEKEND JULY 16/JULY 17 1994 


t 


SPORT: WORLD CUP ’94 


Rio waits for Romario to bring home ‘his’ Cup 

Simon Kuper on the unpredictable brilliance of one of the world’s great strikers «as«n and he put » in me mr 


RomArio said, “is by scoring goals 


N ormally Brazil play the 
best football in the 
World Cup and get 
knocked out early. 

This year has been different for 
two reasons: their defenders can 
defend and they have a striker who 
can score. Romdrio (da Souza Faria) 
has five goals in six World Cup 
games so Ear - about the average 
rate for his career. This league sea- 
son, he scored 30 for Barcelona. 

Carlos Alberto Parreira, the Bra- 
zilian coach, may never invtte 
Romario to his birthday party, but 
he has decided to forget the great 
man's personality flaws at least 
until tomorrow night 
Now that Maradona has retired 
yet again. Romdrio is probably the 
best player in the world, but in the 
last World Cup his irksome char- 
acter kept him from playing 


more than part of one match. 

This is a man who says his hobby 
is sleeping (14 hours a day); who 
informed the Dutch press that his 
P$V Eindhoven team-mates could 
not play soccer, who flies home to 
Rio when he feels like It, league 
fixtures or not who likes nightlife 
so much that he is “going to keep 
going out until I am 90 years old”; 
and who called Pelfc “mentally 
retarded," 

RomArio lacks Maradona's self-de- 
structive streak (when he goes out 
he neither drinks nor smokes, not 
even cigarettes), but he is also a 
good deal less sociable than the 
Argentine. He thought it most 
unreasonable that be had to sit next 
to his striking partner Bebeto on 
the plane to the US. Carlas Alberto 


Parreira, a European type of coach, 
only recently came round to the 
idea of letting this man into his 
team. 

If you are Romdrio you don't have 
to be nice to people Bobby Robson 
mans g w? him at PSV an d was fre- 
quently tempted to fire him, but 
then the striker would appear sud- 
denly os an overnight flight from 
Brazil and scare a hat-trick against 
Ajax. 

The problem at PSV was that 
RomArio disliked Holland. He failed 
to understand the weather, or the 
Dutch habit of turning up for 
appointments, or the way they treat 
soccer stars as normal people, and 
he faded to charm the natives by 
saying things like: “In Holland I 
work; I live in Rio.” 


He was never at home in sleepy 
Eindhoven. Bom in a Rio slum, he 
moved with his parents to a slightly 
nicer slum before becoming a star. 

He does not dare visit the neigh- 
bourhoods where he grew up. but 
he loves driving around Rio like a 
madman, and when, during a recent 
game of beach volley-balL he 
noticed & new building going up, he 
bought 10 apartments on the 
spot 

Rio came through for again 
after his father was kidnapped in 
May. Within days, the police bad 
found the old man 

It seems that the tip-off came 
from a gangster who feared that 
Romkrio’s form might suffer if his 
father were killed. “The only way I 
can repay the Brazilian people,” 


and helping to win the world Cup" 
This, he declared, was going to be 
“Rom&rio's Cup." 

During it he has been the closest 
we have to a Maradona Mark H. 
About the same height as the 
Argentine, with the same enormous 
pha t and thi gh s and skinny calves, 
he has Maradona’s sense of balance 
and can similarly beat multiple 
defenders within a few feet in the 
penalty area. 

Romario, too, has taken to pin- 
ning with the ball from mid-field. 
He is always surprising. “If it had 
been a European player, he would 
have put it in the far comer," 
observed Russian ’keeper Dmitri 
Kharin after Rom&rio scored 
a gainst- him “But Romdrio is a Bra- 


uuruci . 

Romano’s goal against Holland 
(he considered shaving his head 
before the game) was even more 

special 

A cross landed far too far in front 
of hi m, so he flicked himself three 
yards through the air and, while he 
was still dropping, virtually on top 
of the ball, hit a half- 
volley with the outside of his right 
boot into the inside side-netting of 
the Dutch goal. 

The Italian defence will probably 
not permit much of a goalfest 
tomorrow, and Romfirio was part of 
the Barcelona team that last 4-0 to 
AC Milan in May's European Cup 

final. 

But when RomSrio says that this 
is Romano's Cup, and that he is the 
real thin g. why should we argue? 


Coaches ponder their final teams 

The jobs of Carlos Alberto Parreira and Arrigo Sacchi are on the line tomorrow, writes Peter Berlin 



When their team 
was announced 
before the semi- 
final against Swe- 
den, Brazilian fans 
in the stadium greeted every name 
with a roar - all names but the last 
one. They gave coach Carlos 
Alberto Parreira the bird. 

One of the oddities of this World 
Cap is that the coaches of both 
finalists could be fired. In part tins 
reflects the whole tournament lots 
of great games, no great teams. 

Brazil's fans yearn for more fan- 
tasia than Parreira has been able to 
provide. He did not invent the five- 
man back line that Brazil have 
used, hot in this World Cup the 
formation has suddenly looked ter- 
ribly defensive. 

Part of the blame lies with the 
players Parreira has. The three cen- 
tral defenders are all good, 
Old-fashioned centre-halves: quick, 
strong and athletic and. as with all 
Brazilians, comfortable on the bail. 
But they are nnwiffing to burst for- 
ward. 

On the rare occasions that Maoro 
SQva has joined the attack he has 
not made a telling contribution. In 
front of the centre-backs sits 
Donga, the best defensive mid-field 
player in the competition. 

He, too, is slow to commit him- 
self to attack. 

Often when Brazil are attacking, 
four or five of their players loiter 
at the half-way line marking one 
opposing striker. Memories of last 
summer's defensive collapse 
against Germany in a friendly in 
Washington DC still linger. 

The Brazilian approach depends 
on the attacking abilities of the 
wing-backs and mid-field players. 
The suspension of Leonardo has 
been a severe blow. His replace- 
ment, Branco, is a menace at free 
kicks but lacks the pace and sta- 
mina to pose a consistent threat to 
the opposing faD -back. 

The attacking mid-field men have 
disappointed. Mazinho and Zinho 
have been patchy, Rai pedestrian. 
Perhaps the coach will give in to 
the Brazilian president, fans (and 


to memories of Pete) and pick the 
17-year-old wonder-child Ronaldo. 

Brazil have had difficulty break- 
ing down defences. Their passing 
and movement off the ball remain 
pleasing to watch, but often lack 
thrust 

They have been most dangerous 
on the rapid counter, when a long 
ball from defence finds Bebeto and 
Romdrio facing just two or three 
defenders, with the whole opposing 
half to move in. These two have 
demonstrated time after time how 
dangerous two attackers hunting 
as a pair can be. 

So far, Parrel ra’s system has 
worked. Brazil's style is well-suited 
to the heat The team have looked 
in control throughout all bat one of 
their games. The solitary exception 
came after they took a 2-0 lead 
against Holland. 

Brazil may have been guilty of 
losing concentration or it may be 
that until they backed the Dutch 
into a comer they had not faced a 
dangerous attacking 


The suspicion remains that Brazil 
have looked so com f ortable In most 
of their games not because they are 
good but because thdr other oppo- 
nents - Sweden (twice), Russia, 
Cameroon and the US - have been 
poor and defensive. 

Italy are capable of applying 
pr es s ure that Brazil have not yet 
experienced. If Dennis Bergkamp 
can ran through the Brazilian 
defence, so can Roberto Baggio. If 
Aron Winter can beat them in the 
air, so can Pierluigi Casiraghi - if 

Sarriil picks 

Nevertheless, the Brazilians prob- 
ably hope they face the industrious 
but goal-shy Casiraghi rather than 
the speedy, sharp-shooting alterna- 
tives: Giuseppe Signori and Danieie 
Massaro. The Brazilian solution 
will be to defend in numbers. 

Italy, too, will be obsessed with 
double- and triplemarking Bebeto 
and Romario. The hope tomorrow 
is for an early stroke of genius 
which brings a goal and loosens up 
both defences. 


only people 
do not have 


happy memories of 
the 1970 World Cup 
final, when Brazil 
produced a virtuoso display, are 
Italians. They lost 4-L 

But if the attitude of the Italian 
team in earlier rounds of this World 
Cup is a guide, they will be glad 
that they face Brazil tomorrow and 
not Sweden - not because they 
desire revenge, but because they 
want an opponent they can lose to 
without losing face. 

But which Italian side will show 
up? Will it be the confident side 
that tore into Bulgaria for 20 min- 
utes in the first half of their semi- 
final, producing the best passage of 
sustained attacking play in the 
tournament? 

Or will it be the team that surren- 
dered after Spain equalised in the 
quarter-final, spent 20 minutes in 
an abject defensive crouch and were 
rescued only by goalkeeper Gian- 
luca Pagliuca’s fortuitous save 


against Julio Salinas and by 
Roberto Baggio's off-side goal imme- 
diately afterwards? 

Italy's progress to the final has 
not stilled coach Arrigo Sacchi ’s 
army of critics. Some dislike his 
Engiish-style tactics, others his end- 
less Hnlforing with the team - Sac- 
chi has used 2Q of his 22 players - 
as he searches for 11 who wfll con- 
form to his plan. Some object to 
him on political grounds: he is Ber- 
lusconi’s protege. 

It is easy to second-guess Sacchi’s 
squad selection. Roberto Donadoni 
is the only genuine wide player and, 
canny, ridlfni and tough as he is, 
Donadoni now lacks the pace to 
belt defenders on the outride. Only 
Roberto Mussi, a full-back, and Giu- 
seppe Signori, playing out of posi- 
tion, have consistently found good 
crossing positions, though, like 
everyone in this World Cup. they 
have had trouble crossing welL 

Critics argue that it is no accident 
that Italy have earned the nick- 
name of “Cardiac Kids," winning 



Italian goalkeeper Gianlnca P&gtioca prone after Bulgaria’s penalty in Thursday's s emi - final. But the “Canfiac Kids” held on to inch into the final 


twice with 10 men. Only when they 
have a player sent off can they 
safely shake off Sacchi's tactics, it 
appears. 

Yet against Bulgaria, Sacchi’s 
thinking paid off. The Italians 
applied rdentless pressure to the 
ball carrier. Two or three blue 
shirts would harry every Bulgarian. 
The Bulgarians tried switching the 
ball back and forth across the field, 
away from the crowds of Italians, 
yet could never escape. They were 
penned in their half, Italy seemed to 
have more men on the field. 

The Brazilians like to move out of 
defence with quick short passes, 
which should provide the Italians 
with chances to regain the ball 
quickly in the most dangerous area, 
as the Dutch did in the later stages 
of their match against Brazil. It also 
means that Italy could spend an 
exhausting afternoon in the heat 
chasing shadows. 

Since the injury to Franco Barest, 
who showed his age against Ireland, 
the Italian defence has been impres- 
sively solid. Yes, they occasionally 
look shaky when players run at 
them, as Bebeto and Rom&rio will, 
but so does any defence. Now they 
will be without Sandro Costa curta 
an d, unless Fife has an uncharac- 
teristic change of heart, Mauro Tas- 
sottL If this means a return for Bar- 
esi, who had knee surgery on June 
19, the Brazilian strikers will be 
eager to test him out 

Sacchi's squad is showing signs or 
wear. Baggio tweaked a hamstring 
against Bulgaria. With three days' 
rest he should be able to start, but 
be wfll know that if he extends him- 
self the hamstring could pop again 
at any time. 

Pierluigi Casiraghi showed signs 
of cramp after barely an hour of his 
first World Cup start That may be 
because he has hardly played for a 
month or, more likely, because the 
90° heat on Wednesday and over the 
last month has taken a toll on even 
the best-rested players. 

But the key for the Italians lies 
not in their legs but in their heads. 
If their nerve and luck hold, they 
are capable of avenging 1370. 


Losing 
wagers 
litter path 
to final 

Betting-wise, the World Cap 
has not proved my finest hoar, 
writes Mfchtfd Thompson-Nod. 
No bookmakers have topped 
themselves as a result iff my 
bets, which Is always the boana 
I savour most. 

I got over-heated to start with; 
then slowed to a crawl; and was 
finally flattened by qneastaess 
at the sight of Brazil’s shrinking 
odds. In short: bad strategy, 
poor money management, and 
loss of nerve. 

I started too excitedly, 
backing Colombia and 
Argentina, then Romania, 
Nigeria and Germany, and 
eventually Bulgaria - six 
squads of shirt- lifters. Between 
them, these aostralopithednes " 
cost me £308 (including tax). . - 

The only sensible bet I made 
all month was £90 Brazil to win 
the World Cup at 3-1, which was 
the best price you could find 
in London on June 17. Italy 
were 6-1 that day, bat I have 
never backed Italy in my life. 

(to the other hand, the bookies 
were offering half-odds if teams 
reached the final, so there most 
be thousands of Italians already 
showing a huge collective profit 

This is what attracted me to 
Romania at 33-1 after they 
trounced Colombia. Romania 
- 1 divined - were a team from 
the 21st century: pity about 
their penalty-taking. 

As the tournament progressed 
and Brazil looked far from 
convincing. I stared in horror 
at their rapidly-shrinking price. 
This was my big mistake. 

There is a streak of showiness 
in my character which at times 
mutates into a bulging vein of 
vulgarity. Among other things, 
this malms me a contra-bettor. 

I disdain sensibly-priced 
favourites such as Brazil and 
instead bet on flashy on tsideis 
such as Nigeria. Romania and 
Bulgaria. 

As things stand. I will lose 
£134 even if Brazil win 
tomorrow. So yesterday I rang 
the wretched bookies, looking 
for an escape. 

I started with the rascals at 
Ladbroke, which calls itself, 
smugly, the biggest bookmaker 
in the solar system. Brazil, said 
Ladbroke, are now 8-15 to win 
the cnp, and Italy 11-8. This is 
no help to me. I never bet 
Odds-on. 

So I questioned the rascals 
severely. I asked them what 
tiie odds were against Brazil 
beating Italy 4-1, as they did 
in the World Cnp final in 1970. 
Answer 40-1. Brazil to win by 
10 goals to nil? Answer 100-1. 

These odds are ndramanly 
cramped. I would rather buy 
blood from a vampire. Bat I 
believe I have no choke. With 
a mighty smirk and swagger, 

I will today bet £20 on a 4-1 
Brazilian win and £20 on a 100 
pasting. I mean, Italy? 



Confessions of a temporary sports writer 


Con tinned from Page l 


murder of a Colombian, red and yel- 
low cards like confetti, orange 
crushes and cold beers, heat beyond 
all belief, happy fans and sad fans, 
painted fans and near naked fans 
but no violent ones, Arab princes in 
robes and Armanis and Dutchmen 
in horns presumably borrowed from 
elks or Norwegians. 

And there was no need to go to 
the office: the stadium - or the 
couch - was the office. 

It has, in fact, been enjoyable - so 
much so that it is pointless to pon- 
der truly profound questions 
derived from the experience: such 
as whether professional soccer can 
take root in the US (maybe, but it 
will still take time); when Alan 
Rothenberg. the US organiser of the 


World Cup. runs for the senate from 
California as a Democrat (he proba- 
bly will not have the time); or if a 
class action suit against adjure is 
possible for offences to fashion 
(goalkeeping jerseys are now uni- 
versally disgusting. At least Jorge 
Campos, the Mexican macaw, 
designs his own). 

Some gentler observations are 
possible. One wfll be heretical to 
supporters of all the 24 qualifying 
teams and may even be antithetical 
to the whole ethos of all sports, but 
It was passed on by one veteran 
English soccer writer In a quiet pas- 
sage of the Norway- Mexico game 
(ie, the first 85 minutes). 

To avoid being lynched on his 
return, his identify must be pro- 
tected, but what he said was some- 
thing like: “It’s wonderful England 


aren't playing. I don’t have to write 
about the bloody players, I don’t 
have to write about the bloody fans, 
I can sit back and enjoy the game 
and then 1 can write about what I 
actually saw." (One of his col- 
leagues, he said, was assigned to 
Ireland, the Anglo substitute.) 

He is right Having only the most 
marginal of stakes in the outcome 
(how could anyone not root for an 
underdog, except possibly Greece, 
and then only because of the politi- 
cal banners sported by their sup- 
porters?) helps one appreciate the 
game. 

A Moroccan or Belgian is obliged 
to think that Mohammed A1 Deayea 
of Saudi Arabia is the jammiest 
goalkeeper on earth, much as Brian 
Clough long ago dismissed Jan 
Tomaszewski of Poland. 


But the more-or-less neutral 
observer is free to conclude that no 
last line of defence leaps higher, 
faster and wider, or has better 

Swedes must say that Romano's 
goal was not a patch on Kennet 
Anderssen's lovely one in their l-l 
draw, but the eunuch may see that 
only the Brazilian striker had the 
speed, balance and confidence to 
score in the way he did - and would 
do so again. 

Whole teams can be viewed either 
with dispassion or through the filter 
of presumed national characteris- 
tics. or a bit of both. 

There seems a Joyful instinctive- 
ness to close order Brazilian pass- 
ing that is as rhythmic as a samha 
but is offset by an anarchic disre- 
gard for authority. There is a fierce- 


ness about the Bulgarian Stoichkov 
and the Romanian Hagi that 
reflects their Balkan heritage, but 
also a creativity and leadership that 
bespeak hope, unfortunately still 
rather confined to the football field. 

There was an ultimate sadness to 
the performances of Nigeria and 
Cameroon - so much talent, so lit- 
tle direction, that cannot entirely be 
divorced in the mind's eye from 
Africa’s consuming problems. And 
if the Irish were just honest plod- 
ders, what else is new? 

But there have been moments of 
individual br illianc e transcending 
the merely national or the analyti- 
cal. Saeed Owairan’s goal for Saudi 
Arabia against Belgium was story- 
book stuff for the ages, a few sec- 
onds of pure inspiration to be com- 
pared with anything wrought by 


Peld and Maradona at their most 
magical, or Bobby Thomson's 
immortal homer of 1953, or Desert 
Orchid’s last great race. 

Like a birdie on the 18th hole 
after a round of rubbish, it was the 
sort of moment that keeps you 
wanting to play or watch again and 
a gain, even a third division wiate h 
on a wet Wednesday in Preston. 

Honesty also requires a final con- 
fession: there is something about 
this sports writing which is a bit of 
a giggle. You can get away with free 
association, cliches and flights of 
fancy, all of which are ruthlessly - 
and usually correctly - excised 
from just about every other form of 
newspaper reporting (apart from 
restaurant reviews). 

You even dream about making 
Pseud’s Corner in Private Eye, 


secure in the knowledge that yon 
wfll never qualify any other way. 

Not. as the power-tbat-be should 
know, that it is anything other than 
a temporary addiction. 

Two forms of journalism probably 
constitute hell on earth - covering 
the White House foil time and only 
writing about sports - but an inter- 
mittent binge on one or the other 
has a curiously restorative effect 
So, if you want me after Pasa- 
dena , HI be in Camden Yards hi 
Baltimore watching Cal and the Ori- 
oles, or around the White House 
observing Bill and Hills fend off. or 
not, sliding tackles from mean Bob 
and the God squad's back four. Far ’ 
this alone, the World Cup deserves . 
thanks. jm f 

You know the rest, or will by V , i 
tomorrow night f ■ j 





Remember che trouble you 
had organising vour 
wife’s birthday party? 

Trv organisms; the closing 
ceremony of the World Cup 


,9k 


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The technology services behind HbrifCbpUSASfSg 
For further information cafl Bffl Wright on (44) 81 754 4318 


EDS 


X 





WEEKEND JULY 16/XULY 17 1994 


WEEKEND FT XU I 




Golf/ Derek Lawrenson 


Faldo struggles to assert his rights 

Can the old guard be seen handing over to the new at the Open championship at Turnberrv? 






I t was all so simple a few years 
ago. If the Open was held in 
Scotland then the winner 
would be Nick Faldo. It hap- 
pened in 1987 at Muirfield, at 
St Andrews in 1990, and again at 
Muirfield two years ago. 

Faldo's right to be considered the 
dominant player of the age was made 
in Scotland. It was to Scotland be 
came last week to assert that right 
once more. 

He faced the most onerous task. 
The imperious aura with which he 
surrounded himself at the start of the 
decade has evaporated and the lesson 
of the past is that once gone, it rarely 
returns. 

Think of Tom Watson, winner of 
five Opens between 1977 and 19S4. but 
none since. Think of Arnold Palmer, 
who won all bis eight major champi- 
onships in a similarly bountiful six- 
year period. 

Faldo also won two Masters in his 
five-year span of masLery that began 
in 1987 but what was also significant 
was the number of other opportuni- 
ties that he gave himself to win. 

From 1989 to 1992. Faldo never fin- 
ished outside the top 20 in any major 
championship. Last year, he chal- 
lenged Greg Norman every step of the 
way at Sandwich, before eventually 
settling for runner's up spot, and 
again at the USPGA championship, 
where he finished third. 

But the old consistency was missing 
for the first time, with poor perfor- 


mances at the Masters where he fin- 
ished 39th, and the US Open, where 
he tied Cor 72nd place. This year, it is 
that trend that has continued. 

last month, Faldo missed the cut in 
the US Open, the first time be had 
suffered such ignominy in 28 major 
championships. He had gone to the 
event a week before it had been due 
to start - for this is the event, above 
all others, that he would most like to 
win. 

That rude awakening, though, was 
as nothing to what happened to Faldo 
on the first day here at Turnberry. 

We all know Faldo's characteristics: 
examine every detail; leave nothing to 
chance. Faldo's first task for his cad- 
die. Fanny Sunesson, after appointing 
her. was to send her to Florida for a 
fortnight to learn about his swing 
from his coach. David Leadbetter. 

Faldo would be the last player, 
then, who you would expect to play a 
wrong ball, yet that is what he did cm 
the 17th hole in the first round. 

After hitting his drive into the 
rough, he did not even check the 
ball's markings; he just went up to it 
and hit it It was the sort of error that 
would make a beginner blush, let 
alone the man whose philosophy 
towards the game is dictated by its 
meticulousness. 

His 75 was the worst he has scored 
in an Open in relation to par since the 
last time the championship was 
played here in 1986. 

Faldo's playing partner in the first 



Ernie Bs: the natural rhythm of the new guard 


two rounds was Ernie Els, and it was 
hard not to think of this as a meeting 
between the old guard and the new. 

It was the first time they had 
played together since the young 
South African’s win in the US Open. 

Els is just 24; Faldo will be 37 on 
Monday. Faldo is strong but Els stron- 
ger. At times at Turnberry on Thurs- 
day the latter was out-driving the for- 


mer by 40 yards. While Faldo went 
through all his fidgety routines. Els 
just stood up to the ball and hit it 
Where Faldo was plagued by hesi- 
tancy and self-doubt on the greens, 
Els suffered no such problems. 

Faldo believes his swing is better 
now than when he was lapping the 
field, but the results sheet betrays his 
remarks. At least it did until yester- 


day, when a second-round 66 deflected 
some of the an guish and was three 
shots better than his partner Els 
could manage. 

For such a proud, intense man, the 
frustration of such inconsistency 
must be horrific and fully explains 
why be looks so miserable these days. 
His expression hardly changed at 
Turnberry - just this side of manic 
depress! em- 
it was hard not to come to the con- 
clusion that the only thing Faldo has 
left on Els is experience and increas- 
ingly that it would prove no protec- 
tion at alL 

The mechanical nature of Faldo's 
swing contrasted sharply with Els's 
natural rhythm. Many believe that 
Faldo would be better off if he had six 
months away from the man he calls 
‘‘Lead", his coach Leadbetter, whom 
he seems to consult about everything. 
A time to be Lead-free perhaps? 

Faldo was left to battle against 
missing the cut for the first time in an 
Open, which was hardly the contest 
he had in mind at the start of the 
event. 

With yesterday's 66, Faldo at least 
has a platform. But what a critical 
weekend this is Tor him, and the odds 
are against the restoration of his pre- 
eminence. Indeed, as he and Els shook 
hands on the 18th yesterday it was 
hard not to see the symbolism in this 
gesture. 

A handshake to signal the exchange 
of power? 


Sailing/Keith Wheatley 

C stands for 
seaworthy 

Keith Wheatley draws up his own 
guide to top sailing events 


S omething about the 
letter C appears to 
have seized bold of 
the sailing world - 
Cork Week, Commodore's Cup, 
Cowes Week - they all take 
place this month. 

The letter C is about all 
these events have in common, 
however, marvellous though 
each of them is. 


CORK WEEK 

Cork Week has been described 
as “a party with yachts". The 
organisers promise in the 
Notice of Race that no 
competition afloat should take 
more than about three hours, 
thus leaving ample time for 
the festivities to re-convene 
in the marquees ashore. 

In spite of its grand and 
authentic claim to be the 
world's oldest yacht clnb, the 
Royal Cork promotes Cork 
Week with almost teenage 
zest. The grounds of the RCYC, 
above the harbour at Cross- 
haven, ore turned into a 
tented village with bars, shops 
and restaurants. 

Nearly 400 boats turned np 
to race this week in 10 classes, 
making the Irish regatta one 
of Europe's largest second 
I only to Cowes in the number 
of entries. 

The heatwave and light airs 
were a marked contrast to 
1992 (the event is bi-annual) 
when rain and gales lashed 
down, requiring even more 
inner fortification. 

Such conditions can be 
disastrous for the big raring 
machines that even their 
opponents want to see at full 
blast Yachts such as Richard 
Mathews' ex-America's Cap 
12-metre Crusader, the Swan 
yachts Highland Fling VH 
(Irving Laidlaw) and 
Desperado (Richard Loftns) 
bad to wriggle through big 
packs of smaller boats. Only 
the latter found enough of a 
lead to save its handicap. 

Laidlaw has been a keen 
and successful competitor at 
the regular Swan regattas 
around Europe and has 
persuaded the Finnish yard 
to build him the first 
fractionally-rigged Swan in 
Highland Fling Vn. 

Success on the water - two 
wins in the first three days 
- indicates that other racing 
owners may soon be calling 
on Swan to vary the 
previously obligatory 
masthead rig. 

Laidlaw's new boat made 
Desperado. 10ft longer and 
theoretically faster on 
handicap, look pedestrian. 


THE COMMODORE'S CUP 
The Royal Ocean Racing Clnb 
created the inaugural Rolex 
Commodore’s Cup two years 
ago. Its function was to let 
owners of non-Grand Prix 
production yachts compete 
for their country in an 
international competition. 
There was a widespread 
feeling that the Admiral’s Cup 
had become an entirely 
professional event, with 
oblivion and pennry likely 
for amateur competitors. 

However, rivalry for places 
in the Commodore’s Cup 
national teams has been so 
intense that one skipper 
suggested United Nations 
intervention. 


Or the nine nations 
competing, the US and 
Germany are bringing two 
three-boat teams. And the 
American crew whose Mumrn 
36 Pigs in Space was held to 
ransom in a Merseyside wharf 
dispute can confirm that dock 
strikes are not a slice of 
history. 

Officially. England has bnt 
one team when racing begins 
on Wednesday. However, the 
Jersey team consists largely 
of top British big-boat sailors 
anxious to avoid the 
knife-fight of the selection 
process. 

Graham Walker's crack 
Indulgence beads the Channel 
Islands* effort, with the 
interesting Tram in support. 

In her initial guise of an IOR 
one-tonner, Tram was better 
known as the King of 
Norway’s yacht Franz XI. sunk 
so spectacularly last year by 
Harold Cudmorc daring the 
Admiral's Cup. 

Also competing is a Welsh 
team. A trio of yachts. Eagle. 
Integrity and Shogun, that just 
missed the England call-up 
tried to register as England-B. 
RORC polled the field bnt only 
England-A objected. So the 
owners scoured Welsh sailing 
clubs to make up a requisite 
30 per cent crew on each boat 
of the appropriate nationality. 

Sheep carried as ballast 
were ruled not to count 


COWES WEEK 

As usual with Cowes Week, 
beginning on July 30. the 
sailing will be excellent while 
the onshore muddle continues. 
Unfortunately, good 
on-the-water organisation is 
expensive. Without 
sponsorship, entry fees for 
an average 32ft yacht might 
rise from around £250 to £750. 

This year’s fairy godmother 
seemed to have arrived in the 
form of the Japanese-owned 
Aquascatnm clothing 
company. 

Bnt then at Easter, when 
the £100,000 sponsorship deal 
was close to completion. 
Aquascu turn's advisers 
discovered that Cowes 
Combined Clubs had sold the 
Japanese rights in the name 
Cowes Week a decade ago. 

Exit Aquascu turn. 

Lawyers began combing 
Greater Tokyo for the Mr 
Yamagnchi who owns the 
trademark purchased in 
perpetuity, it seems, for the 
princely sum of £1,000. 

However, in the nick of time 
the taxpayer rode to the 
rescue. Medina borough 
council came up with a 
£100,000 financial package 
to snpport Cowes Week. MBC 
said in its announcement that 
the regatta brought in £6m 
to the island daring the 
eight-day event, in a 
straggling local economy 
where 25 per cent of jobs 
depended on tourism. 

Residents steeped in local 
government cynicism observed 
that since the council was 
shortly to disappear in a 
reorganisation that will bring 
a unitary authority to the Isle 
of Wight, the grant to the 
yachties might be seen as a 
laid carefree fling with the 
chequebook by councillors 
who will not have to go back 
and face the electorate. 



Motoring /Stuart Marshall 

Topless in country lanes 



F or the past few sum- 
men - weeks in south- 
east England, there 
have only been two 
kinds of car: those with air- 
conditioning or the others in ' 
which you feel sticky and 
uncomfortable, especially in 
motorway jams. 

But what about convertibles, 
you ask. Certainly, they are an 
alternative, although I am not 
sure sitting in the sun for sev- 
eral hours at a time is a good 
idea. The rush of wind masks 
the heat and makes you forget 
the risks of over-exposure. For 
these reasons, convertibles are 
none too popular in really hot 
countries. 

Still, 1 have to admit that 
driving topless through 
English lanes on a moderately 
hot day can he very pleasant. 


motors 


Hnosop Lsxiu EMJcrifneu I ,ir S* Mod mo 
m cio Lo«i» ianflc. Dcro«shal>9'M 
a Ikmo ji oiftu Tel CPI 

JEIICA London- s 
Dnului I u ' LEXUS 
F p i 00' i? 0 .< I B 8 9 


You savour the smells of the 
countryside (well, some of 
them; others are best avoided) 
and feel more in touch with 
your surroundings. Just 
remember to cover your head 
and use sun block on bare 
arms. 

Not for years has there been 
such a wide choice of convert- 
ibles at prices ranging from 

modest to min d-blowing. It 
depends if your fancy is the 
Fiat Punto 90 £LX Cabrio. just 
arrived in British showrooms 
at £12,995, or a £166.681 
Rolls-Royce CorniChe TV. 

Like the Punto 55 hatchback 
(this column, Jitiy 4). the 
Cabrio scored a hit with me. 
For a car that opens, the body 
feels reassuringly stiff on less- 
than-perfect roads. Dropping 
one wheel into a pot-hole 
makes the fascia creak momen- 
tarily and the side windows 
tremble, but no more than it 
would in any other car lacking 
a steel roof. At all other times, 
it is agreeably taut. 

Windscreen pillars with 
strong reinforcing enable the 
Cabrio to pass the US test 
which assesses the ability of 
cars to protect their occupants 
should they roll over - even 


though the test is not yet com- 
pulsory for soft-tops in that 
country. 

Remarkably, for such an 
affordable car, the Cabrio has a 
power-operated hood. Undo 
two clips at the top of the 
windscreen, make sure the 
handbrake is on, press a but- 
ton and the hood folds into the 
rear deck. 


Not for years has 
there been such a 
wide choice of 
convertibles 


It does not lie quite flat - as 
it does in the delirious but far 
costlier (£17.700) Peugeot 306 
convertible - but an easily- 
attached loose cover, which 
lives in the rather pokey little 
boot, makes an open Cabrio 
look neat. The rear seats are 
habitable by two average 
adults. 

The Cabrio is not just a 
fair-weather car, either: the 
three-layer hood fits snugly 
when up. although the flexible 
rear window has no demister. 


But it Is not quite as light 
inside as a huger- wind owed 
three-door Punto hatchback. 

Power steering, engine 
immobiliser, fuel-flow stop 
valve and electric front win- 
dows are standard. Radio con- 
trols are built into the steering 
wheel, unless you decide to 
have a driver’s-side airbag as 
an optional extra. 

The 1 .6-litre. 88-horsepower 
engine is new and will be 
appearing in other Fiats in due 
course. Already, it meets Euro- 
pean Union emission require- 
ments that will not come into 
force for several years. It p ulls 
hard at low revolutions or 
spins freely up to a boy racer's 
red-lined B^OOrpm, 

The five-speed gearbox shifts 
easily and the Cabrio feels 
quite lively. Flat claims a top 
speed of IQomph U70kph) and 
says a kilometre is covered in 
34 seconds from a standing 
start Fuel consumption should 
be 33mpg {&561/100km). 

Two other versions of the 
Punto that also are new to 
Britain are the 55 EL six-speed 
and the 60 SX Selecta. The 
Selects has a continuously 
variable transmission which 
provides the easy driving bene- 


fits of a conventional auto- 
matic without its cost and com- 
plication. Price: £8,449. 

As for the six-speed 55. it is 
really an Italian market spe- 
cial. There, newly-qualified 
drivers are, very sensibly, 


restricted to cars with a low 
power-to-weight ratio. The idea 
of the 55 EL six-speed is that it 
allows them to stir the gear 
lever and indulge their fanta- 
sies without breaking laws or 
going too quickly. 


There is no such law in 
Britain, although the insur- 
ance industry exerts a moder- 
ating influence. But I did not 
much like the 55 EL, not least 
because it is geared lower in 
sixth than the normal 55 in 


fifth. Unless you have a fixa- 
tion about gear levers, my 
advice would be to go for a 
standard 55 S at £6.780. That 
would save you £539 - and a 
Jot of unnecessary gear shift- 
ing. 








financial 


T1MFS WP.BKBNB JULY 16/JULY .7 I9H 


XIV WEEKEND FT 


COUNTRY PROPERTY 


Knight Frank 
& Rutley 



BlDWELLS 


CHARTERED sub V ETOIS 


LINCOLNSHIRE - Near MARKET RASEN 

Market Rjscn 514 miles ■ Lincoln 19 miin ^"IrruinrC 

THE KINGERBY HALL ESTATE 


WESTBURY SPRINGHOUSE, ,1 
ASHWELL, HERTS | 



Cambridgeshire 
An outstanding commercial agricultural portfolio 
Wood wal tan Estate, Huntingdon - IfiM acres 
Pitt Dene Farm, Elsworth — 925 acres 
Staple Leys Farm, Haddenham - 1,130 acres 

4 farmhouses, 9 cottages. 

9,500 tonnes grain storage, 3,000 tonnes of which 
are dual-purpose potato stores, 
former 150 cow dairy unit. 

About 3,750 acres 

»As a whole portfolio or separate farm units, 

all with vacant possession) |H 


London 071-629 8171 

20 Hanover Square. London W IR 0AH 


0223 84184 I 

.... .luimniu C 


1,362 acres 

A residential, 
commercial 
and sporting estate 

Grade II luted, 

6 bedroom manor house. 

3 hirthcr tarmhouses. 

5 cottages. 

Fjctensive range of form building? 
including grain storage 
jnd pig fanening unit. 
Subic block. 

Amble land 

and amenity woodland. 

For Sale 

As a Whole or in 5 Lots 



: H’ 

M 1 v 


1 1 


i ,i*i* 


1®^ and tiled house, stated 

^withwide^down^w^ ^ ^ ^ ^ 

The a a»mmodauoacomp^* o « worn; Fitted Kitchen; 

fimptace; Dining Room bathrooms (oBC wsrafe). 

OoakroonVWC, M*" ' ^onv^ ^ ^ ^ 

Separate double gW J" # ^ * -Garden WiW located on 

A lather feature o( lh P idca i site for a summer boose, with 
Ihc far side of the moat, ^ woottysidc. 

attractive views over the waicr and suro»« nn 5 

Offers invited for the freehold. .p-nts a «- 

ft* fuU particular please contact the selling agents 


cahbrioge 


rnuupiNcroN «u>»n CA “ B " , “ Q ' M CBl ,l ° L o h u 0 h 

Norwich ifsw'C m 


E— General AetU«l 
S7 Proprrrr hcfvicw 

f07fi3 241655) 


east SUSSEX. BURWASH. Charming Chafe 


'd. Lane Fox 


Humberts Leisure 







BERKSHIRE ' NR MAIDENHEAD 

Shurlock Row 1 mile. Waltham St Lawrence 2 miles. Windsor 10 miles. 
M4 5 mites, London 33 miles. 

A FINE MAINLY PERIOD FAMILY HOUSE 
standing in delightful gardens and grounds. 

4 Reception Rooms, large Cbnsetvaiory. KildioafBrcakbst Room, 
^Nursery, Games Room. 8 Bedrooms, 5 Bathrooms. 

Excellent Indoor Swimming Pool. Tennis Court. Recording Studio. 
Stable Block. Paddocks. 

Charming Cottage. 

ABOUT 11 ACRES 

AS A WHOLE OR IN TWO LOTS 

15 Half Moon St, London Wl Y SA T Tel: 071-499 4785 





IHTHW-IATIORAL 



A superb small Historic estate 
avid corporate hospitality venue 

• A Fine 8 bedroom house, gardens, paddocks 
and a modern stable block in about 1 5 acres 

■ Extensive form buildings and about 65 acres 
of mature parkland 

• TWO lodge cottages producing a regular 
income 

Ftor sale as a whole or in 4 lots 

Joint sole agents: 

_ ... It l- 0732 455551 Fax: 0732 7-HS5I 

Humberts Leisure Ifch 071 629 6700 Fax: 071 -109 0475 


HOTELS • GOLF • LCISl RE 

Symonds & Sampson 

Chartered S«r« S or S Established 18SS 


DORSET/SOMERSET BORDER 
Sherborne 9 Miles 



international property consultants 



Fine period house, standing in beautiful countryside 
3 Reception rooms. 5 Bedrooms. 2 Cottages. 
Swimming pool, lake and outbuildings. 

SOUTH DORSET 



Set in */« of an acre surrounded by the beautiful 
Puxbeck Hills. Hall. 3 Recepions. Kitchen, Breakfast 
Room, 5 Bedrooms. 2 Bathroom. Central Heating. 
Garage. Gardens. Guide Price 
£120.000 Leasehold. 

Tel: 0305 265058 Fax: 0305 26 0859 


Grade II listed country house set in mature parkland 
G {, r cccpti.m room*. 8 principal bedrooms. 3 sccondnv bedrooms, 

4 bathrooms. 3 cloakrooms, ancillary rooms, cdbis. 

Two detached 3 bedroomed period cottages. 

Substantial outbuilding? with potential for further use. 

Formal ami kitchen gardens. 

About 33 acres (further land available) 

Offers around £775,000 

joint Sole Agent 


INTURriAtlOHAl. 

Tcfcovroamiv 1 

0473 611644 


LAKE DISTRICT 

Riverside Apartments 
oQolf 

o Swimming Pool 
o Security 

o Privacy 

£ 1 55.000 - £220.000 
Cowan Head lies iSmins 
M6 J36 off the A59I 
between Kendal and 
Windermere* Open 7 days 
0539 730750 

a v\N Ilf.- 







STRUTT &JU 
PARKERS* 


newton steading 

Glenbuchat, Aberdeenshire 

Slrdthdssn J’.imitcs. Alford 16 mdea 

A former ncadins twcn Uy naro rawd 
with accommodation edflipnsWB 
reception nn, kit. 3 hah, W* 1 * * 
ainetive inJ uiwfoHt final localise. 

Banchory Office: 

Si NWMtft I fame, C» Suikm Re*L 

Tel: U30 824SSS ttouGJ* 82S577 


outstanding location 

A lapeilor teanlence bo I II aid IWOs 
occupy i or occcptiuatl poflliM 

Cwydc Bzy. «Ui 

jnd Land? W**l mi sortoiwlnl ly ®e anen 
oum u ytUeinN. Dn» 
balance iUU. Drawing Roam, Daring *«"“• 
SiuJy. Klidieii. Utility Room. 

3 Doable email* Bedroom*. 2 Doable 
BeilrauBM with 4lh Bit broom. 

SwiAfliuf Pool nd *•' 

owUiBrfAimeieFbL 

Offer 1RO £295^08 to owner oconiier 
Tet #271 890285 


HERTS. WELWYN 

principle pan of an ck&urt Georgian 
Manor House built during the 
regency period siiiUted in private and 
maluic grounds of lV*aeres with 
river frontage. Price £400. 1100 
BRYAN BISHOP & PTNERS 
Td (043 8) 71 88 77 

HOVE, SUSSEX SfH*MS Victorian vjBa 
ftFPj | fi^ hnp&. 4 date beds. l7rcC0p.® n * 
tm. Una Kit. PLU S atft contain Bdn flirt 
Cl 7M60 A3BIT PZ?3) B3B80 


LONDON PROPERTY 





r'i'-^,,~r\ ■ 1" mflfJS'li'l ' ifdi 

d > ^ >5 


r - . . r .1-1:1111 

W.-.'.t i:iMII , .:| 

- \r.jtr ■ mini?: :i 
’• .-.1(111' 


% r 



• friwijp ^ ;w,i 



J v V-:v'> •* 


i * r a-a 

ST'. •**.«<• 

.w'y: 

^ iw i 

~2~- • - J WW W* Mix 

r? *mm - «• 

.. v *pma 2 *3 

r. $ 

^ . --'T-./rwr ViS 
Z: F-i 


Eight substantial houses offering a harmonious blend 
of location, quality and luxury . 

♦ 4-6 BEDROOM FREEHOLD HOUSES FROM £1.120.000-* 1.600.000 
♦ PRIVATE LANDSCAPED GARDENS ♦ INTEGRATED CAR PARKING 
♦ 24 HOUR SECURITY 

Call the Sales Office at Martees Road today on 

071 938 3350 [ 



CHANNEL ISLANDS 


Freehold for sale- 
Sark, Channel Islands. 




UNIQUE COMPACT ESTATE 

IjOcaKd on lh* beautiful Channel Full eltlaiti mil* 

bfanriof&artLihis freehold property pkatagrapkt from 

campcsxsofipr^palsu^remOentx — 

pliH<lconaga(2leil*riihmagniricer , u L Q V E L L O 
views to Guernsey. ~~ 

Lovell fa Lhntaed. PO Bor 50,1 IMAMJl 

twri fatawfa. GYMBA. Teh 0481 71306 Fas 04B1 71SW. 


INTERNATIONAL GOLF 


GEQRGE STEAD" 

mi s. r . . -T- — r7 — WALHAM GROVE, LONDON SW< 


ananged lo suit a family ora coupto®^* 
very Qcobto. A paxriaJar fcromi is 
kheto/lamily/awing room dm tob «** 1 
the south westerly facing gW™*- 
Doublb RKXrnm Room: ■ 

Kno«VFAMH.r/Dwwa Roow Siuwtf 
Or Room: 4 BtnCQOM S 2 BMi «M*g 
(l En Surra): Sount WBsrancr rwaW; 
Gabdgk Gas Cwnw. I toOW- • -■ 


, I'rvul-.ijld 

•_HAM ROAD, LONDON S'.V16 5UL TEL: 071 731 54£0 FAX'- 07 1 ^ 

• ) .’ I nT 


20 MILES 

CHANNEL TUNNEL 


Bantl luUjjopu«»d**»cW , 

alAMTKJNSailP tXMJ 1 UNRS 
Coined oelt a rrwhwkktd ranh from Ibe *a- 1 

Lowlaa 2 horns. Ok rrmral healk g. 3 

Acccpdoe. BccaUm Room, rspcili KilcticB. | 
uuUt. * Pout* Bedmun*. 3 

P-U.^-. DOUBLE CARACE. Lamtocqicd 

gjnJaD INCLUDINO BU1UXNG PLOT. 
Often united. Apply: 
Ortebrook Starroek St Co, Sandwieh 

0304612197 


COUNTRY RENTALS 

SHROPSHIRE 

Magnificent Georgian 
Mansion to let for l year. 

Set in 25 acres of Shropshire 
countryside, 2 hours London. 

1 hour Shakespeare country. 

Wrilc UK Bus U2A2S. ftadj* 
One Sawhwwk DrWge. Loudon SEl 9HL 

SHOOT l£T HP WWDSOROA wd« «. 

Unuely dL mns Bm Thamoa. 10 irtns 

HfflBTO* M4. 5 bate. 2 hotn. 3 IWBP. »0B 

tat 2 aero s« grit nanl £K ® 
ganjenm. Tat 0733 840733 Of Q71 TOO COST 


DENMARK 

NORTH ZEALAND 

Sd in 31 Hectare of farmland, 

40 Km north of Copenhagen, 

2Km frura Tisvikte beach. 
Shooting/Fishing & Planning g 
permission for 9 hole golf course | 
For Sale in ibe region of | 
fSOOJIOO. Free from farming | 
& residential Legislalim. H 

Cbatacc H 

Truc-llollinniy Property, Suite 5, Portfolio House, D 

Dmdu aacr. Great BrilainTcl: QU44 3006*00, Far 0044 30S 210888. [ 

RETIREMENT 

AWARD-WANING BNVIBONMBNt" 

«i-n«ds. From the cho.ee of locntion and layout of tho eonrlyard totM 

ofTer in beautiful locations throughout southern England. 

Prices from £95,000 to £235,009- 

pREE^ONE 0800 220868 




WIMBLEDON 
Detached, doubte-Ironled boose buffl 
around 1860. Tastr fully modernised Co 
the highest standanfc. 34‘ drawing room, 
2? ItitdwnWiiiing room. 4 dmblc 
bedrooms. Mamie, south-faring SO 
ranks- Garage and oET-svtet perking. 
PTOchoW £5754)00. 

Td: 081 947 6517 


WALTON PLACE, LONDON SW3 
Grralapporaaicytoiasdreawcry 
waadertil period how yueOa from 1 hnodi 

and nxcellcai facilities o( KragbtdwUp^ 

+ Drawtag Room + Dtakg Boom 4- Smrf, 
+ Kitcka/BlciUail Room + A Bedrooms 
+ 4 HaOmoma * Cnml WC 
4 2 Comvanc * FraoVRsn GanleiB 
Lxmshoud C75BJBM 
l lAMlLTONS 

Tna 871 7f2 4XN Fax: 07 1 792 1*33 


r\ BLACK H0RS!i .V.i Xl :: ' 

, Gascoigne-Pt^i 


Take advantage of our entos* 1 
promote or find 3"®“ W^estf- 
SWl, SW3, SW7 
Contacts in 16 countries w ™*J* idc ' 
400 offices across the 
Lettings, Msuagcujeni.Saks,5ar^y- 

A SUBSBXARY Of LtOVWBW*^ 


SLOAN E SQL AK1: Oij 

-MTi xid’ F.ix: iri 



PRINCES GATE MEWS, 
LONDON SW7 

A beautifully pcacMnl mews boose wHi 
Mhraorage at own pnp m pnmJgkm tocsUon 
dose h) Knighfilwulge * Keoriagwu Gankim. 

4- Donbta Rrcepiin 1 3 HcUram 
♦ Z BoUnOona + Gncsl WC + Kifc*wi 
BmaUu Room + Smdy +Tatm + Gmff 
FRXBKKJI C52SJ0M 
Hamilton;. 

Tpj 871 7V24338 rAae07179H«»S 

BUYING FOR INVESTMENT? We Hontty 
tha boat oppenuraHes lor you throuQlwm 
central London and provide a eampldta 
package sorvico: Acquisition, Flnanco, 
Funtdhlng. Lotting and Management For 
M dotafc hut: MW1PC - 071 493 4391 
BARIBCAN EC3 I bedroom typo 2V Rot 
overlooking Inks. L’shaptid racoptkm. 
Reduced £99.500 BARNARD MARCUS 
TeC 071 838 3738 Fare 071 438 3S49 

ST. KATHERINES DOCK - HEAR. 
Soming 3 bod. 2 bam. SouOt lacing flat 
■rith direct views over river and Tower 
Bridge. Walking distance of tube. Lift 
porter, parking. £310.000 Hamad Marcus 
Tet 071 6302738 FbwQTI 4362040 
Cmr EC* RMx emn. 1 bedroom pled a 
terra. Ctoso Benk/Sl. Pauls. £89.500. 
BARNARD MARCUS TqI; 071 630 2730 
Fare 071 4382040 

CHELSEA HOMESEARCH & CO Wo 
represent the buyer to save lima and 
nmoy: 071 9372201, F0» 071 937 2282. 




For Sale 

BELGRAVIA 
Family House - £795. ww 

Headfbrt Place, SWL 

Ctanning hnodc wt» W b^« ns ' 

drawing room. 



stnay/WD ucu»w«^ 

rdiuwrt rwwi.2cloatot>OT^ 

kitchon/break^'^u'^ 

room, cellar, terrace, p* 10 - 

ForRcnt 
EATON SQUARE 

SS s sssir 

.1 taltenoms. 2jbow« 


KEItSNQTDHiCStTRiALj-^^^^ 1 ^ 1 ^^ 

selocMon ol quajliyrt®P?“J^ ctwrd 
CifiOOpw. From 3 rig 
AwU)daK»071 9332605- W<r ^" iin __ | rt 
BARBICAN a mV* 

man awrap® 
uarcua Td; o?t 830 SWS 










WEEKEND JULY 16/JULY 17 1994 


WEEKEND FT XV 





PROPERTY 


When home is just 
a short iron away 

So golf is your religion and heaven is living near your 
local course? Gerald Cadogan examines the possibilities 



K een, golfers moving 
house always want 
to know about the 
nearest course and 
how good it is. It fol- 
lows that the best way to find out is 
for them to take their chibs and 
play 18 holes - as an essential part 
of househunting. 

As they watch the 123rd Open 
championship at Tumberry in 
south-west Scotland this weekend, 
they can dream of owning a house 
within a chipping wedge of any of 
the venues where the Open is 
played. Or any coarse, for that mat- 
ter. 

A more costly option is actually 
to buy a working coarse, or acquire 
a greenfield site with planning per- 
mission for a course and develop it. 
Those with real money might even 
like to buy a house with its own 
private course. 

Agent Roger Pryor, of Strutt & 


Parker, says the market for working 
courses has stabilised following the 
property boom of 198&S9 and the 
subsequent fall 

As for new courses, planning 
applications in the south-east were, 
by 1993. more than 60 per cent down 
from their peak, in 1990-91 - but 46 
per cent of these were granted, com- 
pared with 25 per cent in 199L 

The change has come about 
because land-owners, developers 
and local planners have become 
stricter in assessing the earning s 
potential of a course and its impact 
on the community and environ- 
ment The banks, w hich lost large 
amounts in funding grandiose 
schemes, are more circumspect too. 

Today, planning permission for a 
golf course does not provide an 
automatic premium over agricul- 
tural value, says Jim Bryant of Bid- 
wells' leisure team. Gone are the 
1988-89 days of £15,000 an acre. 


Pryor agrees. Only prime sites are 
likely to achieve a top premium of 
£1,000 an acre - which equates to a 
total price per acre of about £3,000. 

That sort of figure is reflected in 
the £350,000 bang asked by SavUls 
of Banbury for a 121-acre site with 
permission for an Id-hole pay-and- 
play course at Cadmore End, near 
High Wycombe in Buckingham- 
shire . It is clrva> to the M40, and 
630/100 people live within 90 min- 
utes' drive. A pay-and-play alterna- 
tive nearby has a long waiting list, 
and Wycombe district council 
accepts there is continuing demand. 

Strutt & Parker estimates that, at 
the end of 1993, there was an 18-hole 
course for every 15/532 people in 
southeast England (if t hose with 
planning consent are included). 
This is half the pre-1968 ratio of one 
mri sting course for every 31,555 peo- 
ple but, says the agent not all the 
consents will be taken up. 

Comity ratios vary widely. 
Oxfordshire offers one course for 
every 21,267 people, Buckingham- 
shire 1:10,230 and Surrey 1:9,550 
(Using the total Of Bdating and 
agreed courses). 

Developing a greenfield site can 
cost up to Elm, depending on the 
design and terrain. Bert it could be 
two years before members Join and 
the pash star ts to come in. 

At Cadmore End , the estimate for 
development costs is between 
£600,000 and £750,000 (to include a 
4,000 sq ft clubhouse). In the first 
full year, the agent expects 35,000 
rounds at, say, £10 apiece on week- 
days and £15 at the weekend, plus 
dub foes for 850 members. (At many 
courses, non-members can pay well 
over £20 a round.) 

For two similar sites - beside the 
A27 at Lancing in West Sussex, and 
at Welton near Lincoln - Clegg 
Kennedy Drew is waiting for buyers 
to suggest a price. In Devon, 
though, a site on the Kingsbridge 
estuary - now a farm with a five- 
bedroom house - is on offer 
through Stags at £395,000. 

According to Tom Marriott, of 
Humberts Leisure, pay-and-play 
courses and commercial clubs are 
taking ova* from the t raditional pri- 
vate member clubs. Ten years ago, 
they made up only 10-20 per cent of 
aH courses; now, Marriott estimates. 


Whore everyone is on noflday: Tumberry, venue oflhk w eefao ncfo Op en- - ■ 



For easo/MO-pius: BroomfteM, a su b s tan t ia l Victorian house near the Roseromert course In Perthshire 


they total 3040 per cent He says 
most courses appear to be trading 
reasonably; only a few are put on 
the market by receivers. 

If the course operates on a lease- 
hold - as many do - the ground 
rent and its review date are impor- 
tant factors for potential buyers 
(E300-E400 an acre is the figure now, 
says Bryant). One working lease- 
hold course, on offer from Hum- 
berts or the Glasgow agent Ryden, 
is Brunston Castle near Turnberty. 
It was designed by Donald Steel 
around the Water of Girvan that 
flows throngh the middle, with 
space for houses, chalets and a 
hoteL Offers of more than cim are 
invited. 

For £900,000, Humberts is also 
selling the Mid-Dorset dub in lovely 
downlands at Blandford Forum (its 
thatched farmhouse is extra) and 
(with Strutt & Parker) is asking 
£1.75m for Woodbury Park near 
Exeter, with 27 holes. Designed by 


Hamilton Stuff, of Tumberry fame, 
it has been working on a pay-and- 
play bads and still awaits a proper 
clubhouse - perhaps even a hoteL 
So you would like a house adjoin- 
ing a fairway? One such is Little 
kdngary, by the 15th at Worplesdon 
in Surrey (Browns, £400,000). Then 
there is Gullane (from Rettie, offers 
over £265,000) by the 1st at the 
famous Muirfield course outside 
Edinburgh which celebrated its 
250th anniversary last weekend. 

A little further north are 
an apartment at Glen- 
eagles, site of tbe recent 
Scottish Open (Bidwells, 
£180,000), and Broomfield, a sub- 
stantial Edwardian house on Golf 
Course Road leading to tbe Rose- 
mount course in Perthshire (Savills 
in Brechin, offers over £390,000). 

Chiffons in Ayr has a few houses 
well placed for the Tumberry. West 
Kilbride and Royal Troon courses at 


prices from £85.000 to £250,000 - 
quite cheap by southern standards. 

In Surrey, apartments for sale 
between £190,000 and £250,000 on 
the Pyrford course include lifetime 
membership of the club; Curchods 
is the agent John D. Wood offers 
two bouses in Coombe Park, King- 
ston upon Thames, beside the 
Coombe Hill coarse, for £535.000 or 
£850.000. 

The ultimate must be a course of 
your own, as at Sundial House near 
Fa mham , Surrey. Apart from its 
whip holes, the owners have built a 
go-kart track in 13/5 acres. Offers 
over £800,000 are sought (down from 
over £900/)00) through Hamptons or 
Knight Frank & Rutley. Another 
with its own course is Great Swifts 
at Cranbrook, Kent, a 1930s* Geor- 
gian-style mansion for which Lane 
Fox set a guide price of £950,000. 
Offers came in at more than Elm. 

Finally, an agent near Tumberry 
said this week: “The whole of south 


Ayrshire is off on holiday." That is 
because householders who are pre- 
pared to surrender their four-bed- 
room homes to Open competitors or 
fans can demand £2,000-£3,000 for a 
nine-day let And if the bouse is 
really big, they can charge well 
over £1,000 a day. 

■ Bidwells. Perth (0738-630 666); 
Browns. Guildford (0-183-3 n 66); 
Clegg Kennedy Drew, London 
(071-409 1944) and Stamford (0780-527 
88); Cbatons. Ayr (0292-268 181k Cur- 
chods. West Byfleet (0932-350 Oil): 
Hamptons, Famham (0252-714 164k 
Humberts Leisure. London (071-629 
6700). 

Knight Frank & Rutley. Guildford 
(0483-651 71); Rettie. Edinburgh 
(031-220 4160); Ryden, Glasgow 
(041-204 3838): Savills. Banbury 
(0295-263 535) and Brechin (0356622 
187): Stags. Totnes (0803-865 454); 
Strutt & Parker. Exeter (0392-215 
631); John D. Wood, Wimbledon 
(081-944 7172) 


COUNTRY PROPERTY 


INTERNATIONAL PROPERTY 





Rettie & Co 


Roxlmr^shtrc by Melrose M 

An P l i Mft t wrath £tdwg Georgian ! 
boost m the Tweed VaBty. ID 

Hal! 4 Reception Rooms. Kitchen. \ I oier ■ 
Bedroom with Emote Dressing Room ™ 
md Bathroom. 5 Bedrooms. 2 Bathrooms. I 
1 Bedroom Gate Lodge. Stable Block. 
Oarages. 

Tennis Court. Swimming Pool 2 
Paddocks. 

in all about 8* Acres 


Offers Over £410,000 
Peeblesshire, Intwriathcn About 13 Acres 
Victorian Shooting Lodge 
Rccetfly refurbished and restored 5 
reception rooms. 7 bedrooms, and usual 
ancillary jceomraodauon. Couryard. flat, 
coachhouse with stables, parkland. 

Walled Carden 

Shore of development potential, subject to 
planning, comprising 5 houses and 2 
gatehouses. 

Offered for sale is a 40%' shore of 
the whole an 
Offers over £200,000 

Roxburghshire Kelso 

An imposing Georgian townhouxe 
< in its own private grounds with 
spacious family accommodation on four 
Boors. Accommodation comprise*: 

3 Receptio n Rooms, Kitche n . Pantry. 
Ctakrooin, 8 Be dr ooms, Bathroom. 
Shower Room. 2 Offices. Storage Range 
aflQub4MiJdm&.GKigLPrhrmD Gardens. 

Offers Over £214000 




Edinburgh Residential Investments 
A selection of 2 to 5 bedroom flats in the New Town area 
'or sale fiom £80,000. Ideal investment opportunities. For 
fruiter information: 


2 India Street. Edinburgh. EH3 bEZ 
Tel 031 220 4160. Fax. 031 220 4159 


DIRECT BEACH FRONTAGE 

iANDBANKS PENINSULA, POOLE 


Spacious New Luxury Houses with 
’anoramic Sea and Harbour Views 

«e, Dining Room, 315 Bedrooms. 3 Baih/Shower Rooms. 
Cloakroom, Fully-fitted Kitchen. Private Sun Patios 
and Balconies. Double Garage. 

ONLY FOUR REMAINING 

exceptional value 

FROM £249,500 - FREEHOLD 

[Malls available from: 

ORRIS & OWEN G ^ C S TO 

Tet 0202 708528 TeJ.081 349 13V7 

Fax: 0202 700182 


Fax: 081 346 9687 


land for sale 


■wv Lane Fox 


GLOUCESTERSHIRE 
Outskirts of Cirencester 
A SUBSTANTIAL 
COTSWOLD HOUSE 
In mature gardens and grounds 

Consent for change of age and 
extension to 70-bedroom HoteL 
planning also applied for 
70-bedroom Nursing Home. 
ABOUT 5 ACRES 

Lane Fox; 0285 653101 


CLEGG 


HANTS - NR SELBORNE 
3.25 acre site 
in rural surroundings. 
Outline consent granted for 
1 quality bouse. 

Very rare opport un ity. 

Price Guide: £250/504 
Haslemere Office: 
0428661077 



WBmaOWTH. SURREY Mr. Gal CoiMB. 4 
bed. S bath. 4 recap. 1.1 aero wtti taka. 
8B0QK or E4K pjn. haM now. Tel 081 908 
6466 (cAoa fas) Fax 0734 872388 (Ete). 


KM ACINI! AMD 

CONIUITAM! lutnroii 

WEST SUSSEX 

Landag, Worthing 4 miles, 
Brighton 11 miles 

GOLF SITE FOR SALE 
APPROX 140 ACRES 

Population of over 300,000 
within 14 miles 

Allocated in tbe Local 
District plan for an 18 hole 
‘pay-as-yoo-play' golf 
course, dub bouse and 
parking. 

Apply: Clegg Kennedy Draw 
19 Oneen Street 
MajMt London W1X 7Pi 
Ftt 071-409 1904 


071 409 1944 


S Charles Lear & Company > 

CHARITON KINGS, CHELTENHAM 

W, of pnmn residential districts. This is a enh wafllial (i warimet 

gentleman's residence with a high degree of seclusion and privacy. Rec eptio n 
K*t1, drawing room, dining room, I ritrlw a i /bTca lrf aM roam, 5/6 bedrooms. 

3 bathrooms, (me. 2 suites), gas CR, indoor pool complex, double garage, 
iMAir «p <M ynlaa and grounds with stream, in all about 1.5 acres. 

PRIGS £445400 FREEHOLD 


SUMMER AUCTION 

Lor 1: The Walled Garden and Boror, 

Upper Slaughter, Near Stow-on-the-Wold. 

A unique walled garden with planning consent quietly sfanated in a mature 
beecbwood. Has planning consent allows fox a peperty of approximately 
3600 sq. fl. Tbe overall plot amounts to about 1 1/2 acres, stocked with 
a number of unusual ornamental trees and shrubs. 

PRICE GUIDE: 02SJM9 TO £150^88 FREEHOLD 
191 The Promenade, Cheltenham, Gloucestershire GL50 1NW 
^ TgL; 10242) 222722 Fgfc (8242) 222855 ^ 

LONDON PROPERTY 


Onthelnma*ionMifMDLDcrcbpn**tslJA 

BRIXHAM MARINA VILLAGE 

.4 spcaacvlar Harbour-edge 

rFYf.i<t PMRNT SITE 

FOR SALE wheoasentfor 
35 Rouses, 6 Flats & 6 Shops 
WAYCOrrS. 5 FLEET STREET, TORQUAY 
TEL: #803/212531 


DT2 


Dcbcnham 

Thorpe 


Fountain House 
Park Street 
Mayfair 

A fourth Hour apartment situated 


budding. Entrance Hall, Reception 
Rons. Kitchen, 2 Bedrooms, 

2 Bathrooms (1 Bo-Suite). 

24 Hour Porterage, Passenger lift 
Lease 107 years £425,000 
Mayfair Office: 971 468 1161 


LONDON/BELGRAVIA MEWS 


Impressive period bouse, d 
mews off Eaton Stpoe.! 


a unique ■pots’ i 


la tbe highest 
office tacdiues, 
■he cellar, dining 


2 tarn*, tfawafttang room, ctoskreoar, 

garage and private patting, 

36 year learn {option 90 tt rauankml 
ASKING £5854)00 
For ddafls Gall D J Lewis 
USA 1-212-316-9627 
FAX: 1-212-865-4894 


BROOK GREEN, WS 5 bed Victorian 
house a— M W pre aag ous tty 

Sote hstrocaort t48SD« im BARNARD 
MARCUS 071 003 13W 


QARAGMC & pkng W0 wrii potenda 2 hod 
tot or 3 bed. 2 bwh irewc ttso. Gge lor 3M 
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Ottere anted. 07I381 5488 {!)• 

LEICESTER SQUARE, WC2 Modern tyt 
2 bod 2 bofli 2nd Or to. F/F ml Carpets. 
P/B UodL Lift, ri 52300. £ A Shuar Tel: 
pn) 240 2255 

MAYFAIR. W1. An tmnacm* 4Sl «. 2 Bed, 
2 Mi bracks PWcSB*N to vrel imaged 
tto*, 3«* podwage. M8 yr fen. £475400. 
CbegtaimnanetidmUOTI 6294513 


MONTE-CARLO 
LE GRAND 
LARGE 

Superb 2/3 bedroom 
apartment for sale. 

176 sq. m. entirely 
decorated, lovely terrace, 
jaccuzi. sea view, 2 storage 
rooms and 2 parking 
spaces (R15). 

AAGEDI 

7/9 Bd des Moufins MC 96000 Monaco 
Vjd 53-92 165 999 Tw 33-93 SOI 9*2j 


I SANDS POINT 

36 mat fro* NYC 
TOWN * COUNTRY 
PANORAMIC WATER VIEWS 
A Kctodot norm. SoafQkd entm brick 
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2 (plcL 3 apeaaa BRY, 4bda, goonaei BK i 
iwfflct ikmr. JVfl bmsfti a*. A perfect 

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5M5MM 

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Snvua-ntE Ncbih Suou rat oves 35 rss 


WORLD OF PROPERTY 
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Tbe best & biggest 
For your 
FREE COPY 
Tel: 081 542 9088 
Fax: 081 542 2737 


SWfTTERLAIO 


Lake Geneva & 
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Panoramic 20 Hectares property, 

lake bank, 40 Km highway from 
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mg. (3 living. 4 bedrooms, 3 baths, 
latge audio & caretaker's 2 room 
flat, vme cciijir, ^unidi, ptnuuuip^ 
pool. 600 olwe trees - near 
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THeftau 39.2457 2669 
or33.L4S39 7889 


m SWISS ALPS 

■“ LES DtABLSJETS 
Apartmnres and crialnts In typical 
| Swiss vtaaga tor holidays 8 imrestmant 
ubit nr A summer. Suing to 8000m. 
Prices from SF 250.000 (£113.000) 
with permission for foreigners to buy. 
Local Swiss mortgage avoilBUj^ 
Ring London on: eSTM 
Tel/Faac 081 -882 5918 ■■ 


BARBADOS SIriAMES» 

Outstanding beachfront 
Famfly Home, 8 bed/Acre plot. 
Located on the spectacular 
Sandy Lane Beach. 
Panoramic seaviews. 
Asking price SI -5 million. 
Tel/Fax: 071-352-4567 


MORTGAGES 



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2 briu fonge. nmly tned MMn. im. ggs 
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TUSCANY. Superb apartment In ancient 
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FINANCIAL TIMES WEEKEND JULY 16/JULY 17 


OUTDOORS 


Beekeeping /Gerry Nortbam 

Fagin and 
his raiders 



The sky-blue Gloire de Versailles Ceanothus will grow anywhere on well-drained soil «*au* 

Where have all the shops gone? 

. . . gone to flower shows every one. When will they ever learn? asks Robin Lane Fox 


T his is the time of year 
when I start to feel 
like Fagin. sending 
my young appren- 
tices on raids all over town, 
and rubbing my hands as they 
return to the den with their 
spoils. 

The hives are filling up with 
honey as my thousands upon 
thousands of little Artful Dodg- 
ers and Olivia Twists Oy back 
and forth across a three-mile 
radius sucking nectar from 
flowers and race back to share 
it (if unwittingly) with me. 

The speed with which they 
work is breathtaking. Three 
weeks ago, before the main 
nectar Qow. I added a light- 
weight cedar box to the top 
storey of each hive, filled with 
empty frames to hold the hon- 
eycomb. 

Today, I find it a struggle to 
lift, weighed down as it is with 
the dense pale homes from var- 
ious flowers which have been 
crammed into it 
They are fairly well mixed, 
but you can find pockets of 
particular flavours, the best of 
them, to my taste, being the 
delicate nutty sweetness of the 
hawthorn. 

The making of honeycomb is 
as fascinating as the filling of 
it and is proving particularly 
poignant to watch this year 
against the backdrop of a nine- 
acre building site which we 
now overlook from our garden. 
Huge stores of stone, wood 
and tile have been trucked on 
to the former school grounds, 
while inside the hives, with no 
fuss, no materials and no 
machinery, the bees are build- 
ing too. 

Beginning with the empty 
wooden frames, the apian 
workers first find a true verti- 
cal by making a plumb-line of 
their own bodies. 

They have had an instinct 
for doing this in holes and hol- 
low trees for millions of years. 

Twenty or so of them hang 
in a chain holding leg to leg 
while the wax-makers and 
labourers move in to begin 
construction. 

Cell by cell the hexagonal 
structure is created in symme- 


try, on either side like a mir- 
ror-image until it perfectly fills 
the frame, each cell smoothed 
and polished just a fraction 
longer than a worker bee and 
built sloping upwards at a few 
degrees to the horizontal to 
keep the honey from dripping 
out 

For added strength, the pat- 
tern of ceils is offset so that 
the centres of the hexagons on 
one side key the comers on the 
other. 

Using nothing but their own 
secretions, the workers build 
enough comb in a week to hold 
351bs of honey - many times 
their total bod; weight 

As a collective display of 
skill, it must rival building 
Manhattan out of your own 
eyelashes. The bees approach 
this project with such dedica- 
tion that it is usually safe to 
lift the roof to watch them at 
work and wonder how each 
tiny brain can possibly hold so 
much instinct. 

They do not disturb easily, 
since time is short in the 
weeks of the honey-flow and 
the colony's survival in the 
coming year will depend on 
building sufficient stores. The 
mood of their energetic buzz- 
ing is now diligent rather than 
aggressive. 

If they do seem tetchy on 
first opening the hive, it may 
mean that they are agitated 
about running short of space to 
build yet more honeycomb, 
which they recognise as a dan- 
gerous condition. The wise api- 
arist will take care to recognise 
this too, before rioting breaks 
out. 

Once filled, each hexagonal 
cell is capped with a thin air- 
tight lid of wax to preserve the 
honey for the winter. 

But it is at this moment that 
Fagin robs his own apprentices 
of their bounty. 

There are reports of sealed 
honey lasting for years - even 
centuries - in perfect condi- 
tion. 

t rely on printed wisdom for 
that, since in oar house we are 
lucky if a piece of honeycomb 
lasts a week before it is per- 
fectly gone. 


E very year. I vow to 
go to look, not to 
shop, and I end up 
lop-sided with bags 
of plants. Last 
weekend, the crowds poured 
into the Hampton Court 
Flower Show; marvellous rub- 
bish was changing hands In 
the craft village; wooden trellis 
was being booked up by the 100 
metres; after two hours, most 
of us thought of joining the 
stand called Glased Additions 
because it matched the look on 
our faces. 

Remember that the British 
like shopping somewhere other 
than the high street At horse 
shows, they want to buy suede 
and leather; at dog shows, I 
have seen them buying carpet; 
at flower shows, they will buy 
anything in frames or blue and 
white number-plates to give a 
French look to the front of the 
house. 

Hampton Court strives hard 
to show flowers under canvas 
and, this year, the sweet peas, 
half-hardy perennials the 
border plants from Bres- 
singham were up to Chelsea 
standards. But if anyone 
thinks that it is the new Chel- 
sea of the future, they are hor- 
ticulturally impoverished. 

There were some brave 
exceptions but the sponsored 
theme tent for International 
gardens led to the inevitable 
attempt to do too much in a 
too small, publicity-centred 
space: how could anyone 
believe that they were being 
shown the essential art of Italy 
and its great former garden at 
La Mortola in a confined space 
under canvas, even allowing 
for the awkward fact that its 
I talian committee of university 
inheritors are widely agreed to 
have ruined the style of La 
Mortola and its English origins 
anyway? 

The Royal Horticultural Soci- 
ety has taken the Hampton 
show under its care after previ- 
ous confusions in the partner- 
ship with Network SauthEast. 
The nursery exhibits seldom 
have the scale or combined 
impact of Chelsea's main tent 
and the outdoor gardens are on 
the lower end of Chelsea's very 
low scale. 

The supreme distinction of 
Hampton Court is the scope for 
shopping. I fear that it may 
dent Chelsea - but only 
because it occupies different 
ground. Once you allow the 
public to shop on it, they will 
career downmarket like Gada- 
rene swine. As Gadarene as the 
beat of them, 1 think I have 
avoided pigs in a poke. 


The fact is that after five 
years of bagging and buying at 
Hampton Court, my garden 
wears a new look. It is at this 
show that I really appreciate 
the strength of the new Alstro- 
emerias, which have been 
steadily produced by Peter 
Smith, of Chanctonbury Nurs- 
eries, Ashington, West Susses. 

This weekend sees their 
lesser relations, the old Peru- 
vian lilies and Ligtu forms, 
just ending their handsome 


season of flower. Peter Smith's 
new varieties will continue for 
months and some of the best 
are unarguably hardy. There is 
no disputing the strength and 
hardiness of its Little Princess 
forms, which flower at a height 
of about a foot, last for weeks 
and have the exquisite mark- 
ings which you find on their 
cousins in florists' shops. 

Many gardeners rightly hate 
novelties and mini-plants but 1 
do urge you to try these splen- 
did innovations where you 
have a sunny bed and a light, 
open soiL They are extremely 
easy, although they disappear 
below ground in late autumn; I 
doubt if half-hearted gardeners 
could kill them. 

Dodging the conservatories 
and wrought iron, I always 
head for the conservation tent 
where the plants are more 
unusual ana the crowds are 
less frantic. Here, too, I have 
struck gold. 

The best exhibits are backed 
by the National Conservation 
of Plants and Gardens Collec- 
tions. which aims to conserve a 
wide range of varieties in 
major families of use to the 
gardener. This year's exhibit of 
the new Day Lilies made me 
wonder whether anyone will 


conserve most of them in SO 
years. 

Much of the breeding seems 
to be stuck with the search for 
ever-hotter colours and smaller 
stems: the orange-yellow Stella 
D'Oro has turned out to be a 
shocker, as many of us verified 
when walking past the rather 
dreary plantings in the gar- 
dens of Hampton Court Palace 
itself. 

However, the pale yellow 
Giant Moon has real class and 
I am glad of its cool colour and 
vigour in the front to middle 
row of a bonier. I made posi- 
tive notes on Michelle Coe, a 
tall, pale peach, and Chicago 
Picottee Pride, both of which 
are in softer colours than 
many of the newest breaks. 

The moral of all this study is 
that we should never risk buy- 
ing a new Day Lily blind: the 
strength of colouring can be 
most misleading. The effort to 
find the best is worthwhile 
because these plants really do 
block out weeds and last far 
years without attention. 

1 rank them second only to 
my essential answer to garden- 
ing without effort in shade or 
any difficult sail: the matchless 
Geranium endressii. 

Hampton Court has also 


alerted me to a new trick: the 
special merit of the new Wag- 
eningen variety, the flowers of 
which are a particularly clear 
and strong pink. If you have a 
choice, opt for it first. 

At Hampton. I feel more in 
the mood for Ceanothus than 
at Chelsea, when their season 
is not far advanced. Specialists 
allow us to compare a wide 
range, some of them new from 
west America or the Antipo- 
des. They are also prepared to 
discuss the difficult question of 
hardiness, the feet which rules 
out most of the best 

I return to the strong blue of 
Concha and also Edinburgh, 
neither of which is entirely 
trustworthy in a serious win- 
ter. They grow so fast that 
they are worth a gamble any- 
where but I continue to be 
most thankful for one of the 
commonest forms. 

The sky-blue Gloire de Ver- 
sailles will grow anywhere on 
well-drained soil- It is at its 
absolute best in big Hampshire 
gardens from this weekend 
onwards, where it stands 
among old roses as a free 
shrub in its own right, ft picks 
up the show this weekend 
when the roses are fading and, 
after four winters with me, it 


has shown no serious loss. 
Each spring, pruning should be 
light. Impatient gardeners 
would love it as a filling 
between slower plants in a new 
garden wherever there is 
warmth and shelter. 

Lastly, the return of an okl 
favourite. Our grandfathers, 
grew lots of the tall, lemon-, 
yellow daisies of Anthemls! 
Wargrave throughout their) 
herbaceous borders, but the I 
mad keen gardeners of the 
1970s managed to lose most of 
the stock. Three years ago, i 
thought 1 had found it bat it 
turned out to be the shorter, 
and more vivid, Anthemls EC 
Buxton, which has supplanted 
it in common nurseries. Did no 
one remember the height and 
paleness of the true daisies 
which were upheld in iron 
plant-hoops in my early years? 

At Hampton Court, the real 
Wargrave surfaced - alive and 
well at £3 a plant from Rush- 
fields, of Ross Road, Ledbury, 
Herefordshire. Rushfields is 
expert at staging displays of 
the softer colours among bor- - 
der plants and last week it con- - 
finned that Wargrave was still 
in good supply. 1 left Hampton 
Court reunited with this long- 
lost friend. 


HAVE WE JUST FOUND 
YOUR WEEK SPOT? 


t* ... 

■i vtiKiv-': . - 








> v vr 





V 

Before you decide 
where next to cast your line, 
cast your mind to a Scottish 
setting as unique as It is idyllic. 
To a river of guaranteed 
water levels with such runs of salmon 
and sea trout that, contrary to trends elsewhere, 
the catch rate is impressive, and increasing. 

To a place of unspoilt beauty. Natural — 
Highland scenery at its best — ideal For the 
serious gamefisher. 

To j variety ofbeats where the troc sportsman 
cannot Jail to respond to nature’s challenge. 

To a river so carefully husbanded chat it is 
constantly monitored and maintained along its 
entire length, benefiting from far-sighted single 
ownership and investment. 

To a place where the expert ghillies have 
a family bond with the banks and waters, that 
has lasted hundreds of years. 

You have just discovered the River Beauty. 
It sounds like a dream, but its a reality. A practical 
one, too. The River Beauty oilers some of the 


best fishing in Scotland, yet is only 20 minutes 
from Inverness. 

For the privileged few wr now have 
a number of rod weeks available for let or 
purchase. If you would like to enjoy and invest 
in superb fishing with surroundings and facilities 
to match, send for your brochure now, or ring 
us on 0948 85393. You won’t be disappointed. 
In fact, we think you’ll soon be hooked. 

P 

i o 


Wnve Knd Me dead » u f IlK- lectori Of puflCtuwr m faJtnfi r I 
on llte Lowa Bauly Q and ihe Upoci Bnuly Q * 


Mdroa 


CrnnpBu . 

ix-rpamir 

Imjiiuk 

deplume n*m 6 er__ 


Broom* Rink, H»ropien Hath. MjJpu. Cheshire SY14 BLT 

^■<n ■ 

L^L* RIVER BEAfUJLY 

FISHINGS O? 

■- 1 " M 


FT Ski Expedition /Arnie Wilson 

Broken finger, 
broken vehicle 


Arnie Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a round-the-world expe- 
dition. They are now near the 
ChUe-Argeruma border. 

A s we swooped low 
over the smoulder- 
ing furnace in the 
crater of the Villar- 
rica volcano, a huge swirling 
cloud of sulphurous smoke bil- 
lowed towards us: our Cessna 
felt as vulnerable as a model 
aircraft made of balsa wood 
and glue. 

We circled the crater four or 
five times anti], in a near 
trance-like state we seemed to 
be on the verge of being 
sacked into It Bat Robert 
Stanton, our pilot, had flown 
over this volcano many times 
and was as cool as Biggies. 

Stanton had flown south to 
meet us to deliver essential 
documents to enable us to 
cross the border from Chile 
into Argentina in the four- 
wheel-drive Lada vehicle we 
had borrowed from him. 
Before flying home, he offered 
to take us for a buzz over Vfl- 
larrica. 

This was infinitely more 
exciting than experiencing the 
volcano on skis: like so many 
Chilean ski areas, Villarrica's 
skiing was severely restricted 
by lack of snow. 

Ski resorts in the Chilean 
Lake District receive consider- 
able moisture in their snow 
from winds blowing across the 
lakes. Lift towers can become 
so encrusted with ice from 
freezing rain blowing in from 
Lake Villarrica that the 
weight can bring them down. 


The wind was especially vio- 
lent during our last morning 
there; the door of the Lada hit 
my hand with such force that 
my middle finger Is now in a 
splint feared broken. 

Ronald Turner, the general 
manager at the Club Esqut 
Andino iu Antillanca, sur- 
veyed his resort and said: 
“These winds make it impossi- 
ble to operate the lifts. This is 
rather a disastrous start to the 
season which is short enough 
at the best of times." 

When at last the winds 
dropped we were able to ski 
Antillanca at will, floating, 
cruising and drifting down rip- 
pling gullies and around huge 
craters, marvelling at the most 
spectacular scenery we have 
seen in Chile so far: the 
bizarrely beautiful Puntiagudo 
almost shoulder to shoulder 
with the Fuji-like Osorno vol- 
cano; and the triple-peaked 
Mount Tronador. 

But onr elation evaporated 
as our adopted vehicle broke 
down In the middle of the 
night in the wilderness. Fortu- 
nately, although we were 
miles from a village, we were 
close to a Chilean border post 

The border post is kept at 
the ready in case of tensions 
with Argentina, and horses 
are best suited to this moun- 
tain terrain. We had been res- 
cued by the Chilean cavalry. 

Being rescued on horseback 
would have been more dra- 
matic, but the cavalry had 
transport to get the Financial 
Times expedition to safe quar- 
ters. to ponder how we were to 
cross into Argentina with a 
stricken Russian vehicle. 


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ESTAUI. I Ml E n 1874 






i 


t 


t -• - 






WEEKEND FT XVII 



Lunch with the FT 

The appeal of a celebrity lawyer 

Christina Lamb meets Alan Dershowitz, controversial advocate to a string of famous clients 


A * Erst sight the Har- 
vest restaurant In a 
small alley near Har- 
vard University offers 
little of note beyond 
som e colourful murals depicting a 
swirling mass of fruit and vegeta- 
bles. Lunching there with Harvard 
law professor Alan Dershowitz, 
however. It takes on a whole new 
complexion. 

Often described as America's 
mo st c ontroversial lawyer, Der- 
showitz has handled a succession of 
high profile appeals for famous fel- 
ons. His celebrity clients include 
junk-bond king Michael Mfflken, 
tax-evading New York hotelier 
I ^ aona Helms ley, and former boxing 
champion Mike Tyson. And he 
brings all of them to lunch at the 
Harvest This place holds a lot of 
memories," he told me. “I was here 
last week with Mia Farrow. I’ve 
eaten frequently with Claus von 
BtUow at that table over there and 
this one with Mike Miliken.” 

Today he has arrived late and 
slightly breathless from working on 
the appeal to reduce Tyson's sen- 
tence. Full of energy in a nervy 
Woody AUenesque way, his mop of 
curly red hair and casual dress 
make him look younger than hk 54 
years and surprisingly nn d a nntfng 
for a ruthless superlawyer said to 
be capable of securing a suspended 
sentence for Jack the Ripper. 
Though be describes hnwc^w as 


an agnostic, he is so proud of his 
Jewish identity and Orthodox 
upbringing in Brooklyn that he 
wrote a best-selling book about it 
called Chutzpah. In his house he 
has a framed piece of barbed wire 
from Auschwitz as well as painting s 
from the Jewish ghetto, and he 
checks on the ingredients before 
ordering vegetable soup followed by 
anchovy tart with chicory and fen- 
nel salad. 

“It’s very difficult to get good 
kosher food around Harvard," he 
complains. “I got so fed up that I 
actually started, my own deU. It was 
very popular among students but 
we were losing $2 a sandwich so 
had to dose down.” 

Fiendishly bright, it is surprising 
to learn that in his teenage years he 
was regarded as a troublemaker and 
academic failure. Having just 
squeaked into Brooklyn College, he 
discovered his true calling in law, 
going on to Yale where he gradu- 
ated first in his class. At 28 he was 
appointed tenured professor at Har- 
vard - the youngest in the Law 
School's history - and became an 
appellate lawyer because he says, 
“it fits in best with my tea ching 
schedule”. 

His reputation as a lawyer of last 
resort began as defence for a sales 
of controversial characters from 
pom stars to Soviet dissidents. In 
1982 he hit the headlines after Claus 
von BQlow hired him to overturn a 



30-year sentence imposed for trying 
to murder bis wife Sunny with insu- 
lin injections. The call came on 
April Fools' Day and initially Der- 
showitz did not believe it was really 
von Billow. Warning him: “I'm not 
a hired gun”, be put together a 
team of his best students and 
secured a reversal of the conviction 
on a technicality. Reversal of For- 
tune. Dershowitz's book on the case, 
became a successful film. 

It was seeing the movie that made 
Lori MIliken decide that he was just 
the man to help her husband, for- 
mer head of high yield securities for 
D rex el Burnham Lambert, who had 
been sentenced to 10 years after 
pleading guilty to violating federal 
security laws. 

Dershowitz seems to relish being 
seen as the St Jude of legal lost 
causes: “It's a great challenge to be 


the last stop before the gas cham- 
ber. The justice system is only as 
good as it is toward the worst per- 
son." 

I ask if be deliberately chooses 
guflty clients. He replies: “Every 
lawyer prefers innocent clients but 
there are just not that many inno- 
cent guys around." 

Does it makes any difference 
whether they are guilty as to your 
chances of getting them off? 

“It didn't use to. You could 
always get people off on a technical- 
ity or constitutional hitch. Now it’s 
not so easy.” 

In one of his books he wrote 
about a recurring nightmare in 
which Josef Mengele asked him to 
be his lawyer. I ask if he would feel 
bad about getting a murderer let 
loose in society. 

He smiles: "Court cases are not so 
black and white as portrayed on TV 
or in movies. In the Mike Tyson 
case the girl claims she got on top 
or him in order to escape. But she 
didn't say that at the time." 

Surely, though, he must form an 
opinion about a client’s innocence. 
"Yes. I do," he says, intriguingly. 
“Von Billow I’m absolutely con- 
vinced is innocent But you never 
know. I remember when we got 
some forensic evidence in his 
favour and I said to him 'Now I 
know you’re innocent’. Claus smiled 
and said ‘Alan, you don’t know. 
Only two people in the world know 


that - me and Sunny, and she’s in a 
coma'." 

As Dershowitz makes no secret of 
his dislike of the Est abli s hm ent, I 
wonder if he likes the people he 
represents. “Yes," he replies Tm 
close friends with von Billow, 
Miliken is really sweet" He does 
not feel the same about Leona 
Helmsley: "She’s bitchy, and ! use 
the word advisedly. But that's why I 
liknd defending her. I felt she was 
being punished for how she Is. like 
a female Donald Tramp, qualities 
that in a man may have been 
admired." 

Reward cnmM in the shape of fat 
fees - about 3480 an hour - much of 
which goes on his art collection. 
But Dershowitz claims his most 
gratifying case was that of Soviet 
dissident Anatoly Shcharansky, 
which he worked on unpaid for nine 
years to free him from prison. Why? 
“Our ancestors came from the same 
part of what is now Ukraine." 

He gets hundreds of requests each 
week from potential clients. "Every 
case you see in the media comes 
across my desk." he says, “but Tm 
lucky because I have a full-time 
career as professor so can pick and 
choose. I fry to do precedent-setting 
thing s which, will be useful in clata 
I wanted Tyson because date rape is 
a cutting-edge issue. Along with 
abuse it’s one of the least reported 
and most falsely reported crimes.” 

Dershowitz has a new book about 



Alan Dershowitz: ‘There are just not that many innocent guys around.’ 


to be published - The Abuse Excuse 
- and he is completing a novel. The 
Advocate’s Deoil, as well as a sequel 
to Chutzpah. He says: “There's 
nothing I like better than sitting in 
my study writing and listening to 
opera, with Ella this four-year-old 
daughter] playing on the floor." 

He even has spare time, in which 
he is writing an opera. “My secre- 
tary calculates I write one million 


words a year - all in felt tip.” 1 ask 
if he is a publicity junkie. "I use it 
as a tool," he replies. "Usually, 
when I come into .1 case my clients 
are getting a very bad press, so I try 
to get them portrayed in a better 
light" 

Some would say you are the one 
getting all the publicity. 

He laughs. The one person I can- 
not defend is myself.” 


The real reasons why 
science is under attack 



In the Weekend FT 
last month. Professor 
John Postgate posed 
the question: ‘ Religion : 
are we better off 
without it?* Here 
Hugh Dickinson, the 
Dean of Salisbury, 
gives his reply. 

'“Die ape-old dispute between science 
and religion has resurfaced. But sci- 
ence has the moral high ground 

- Professor Postgate 

T he clarion call by Profes- 
sor Postgate in defence of 
science sounds a bit like a 
nervous Roman legate 
warning his troops of 
Impending rebellion by wild Ger- 
manic tribes across the Rhine. He pic- 
tures a rational scientific elite having 
to defend itself against repeated 
onslaughts of religious fanatics. 

But is it really like that? This is not 
tiie first article in the FT by a contem- 
porary scientist expressing a sense 
that “science” or scientists are some- 
how beleaguered or under threat, and 
to attribute that threat to the malign 
influence of "religion", specifically 
Christianity and Islam. 

Postgate devotes much space to the 
fruitless game of bala n cin g the profit 
and loss accounts of religion and sci- 
ence - a sort of tit-for-tat of “you’ve 
done nastier things than we have”. 
The enterprise is naive and pointless 
unless he defines what he means by 
“science" and "religion”. 

Both are complex, pluriform con- 
cepts, not single unitary entities- "Sci- 
ence" stretches all the way from the 
abstractions of theoretical physics 
through the Cera cyclotron, via 
molecular biology, keyhole surgery, 
ceramic saucepans, and on to the hfll 
former using the latest herbicide sold 
to him by the agri-chemical multi- 
nationals. 

“Religion", likewise, stretches from 
human sacrifice in the Amazon basin 
through the sack of Constantinople, 
the prophet Mohammed, Giotto, 
George Herbert, Salisbury Cathedral, 
Francis of Assisi. Lord Shaftesbury 
and the Sermon on the Mount 
Both religion and science (in that 
general sense) do have dark episodes 
and great achievements; both have a 
history of terrible distortions. But 
unless religion is fundamentalist and 
science positivist mid systematically 
reductionist, there is no necessary cob 
listen. It is cheap to accuse the many 
first-class scientists who also have 
deep religious conviction of keeping 
their minds in two water-tight com- 
partments. The innuendo of intellec- 
tual dishonesty is inescapable. 

Science and religion occupy differ- 
ent realms of discourse, each with its 


distinctive appropriate language. Reli- 
gion is about meanings, purposes and 
values; science about physical phe- 
nomena and their relationships. Reli- 
gion is about the quality of things, 
people and experiences; science is 
about enumeration, measurement and 
quantity. The most profound human 
experiences cannot be measured or 
enumerated, and the integrity 
required for honest measurement is 
only one segment of a broad spectrum 
of moral imperatives needed by 
human society. Alone, ft offers no spe- 
cially high ground. 

But there are two issues raised by 
Postgate which are of real interest 
Why is there a widespread distrust of 
“science”? And what kind of morality 
can “science" offer humanity? 

The distrust of science is not gener- 
ated by religion - it is for too wide- 
spread for fundamentalist hostility 
alone to account for it Admittedly, 
there are flu'iriaimmtalis t groups in all 
religions whose authoritarian hold 
over their adherents is threatened by 
a modem understanding of the uni- 


verse. But the unease about “science" 
is a deeply felt anxiety in secular soci- 
ety at large. 

It arises from the fact th at applied 
science is not value neutral - it has 
immense economic and political and 
environmental consequences. The 
public knows that “science” is an 
often ambivalent benefactor - like the 
Greeks bringing gifts, its contribution 
to the welfare of society is not always 

beneficial. 

M ore sinister, who pays 
for science - who calls 
the tune? Scientists 
must be paid by some- 
one. And too man; have manifestly 
sold their objective independence to 
governments, multinational corpora- 
tions or interest groups. They are 
happy to be called as witness on oppo- 
site sides of public inquiries - who 
are we to believe? 

Of course, pure scientists are not 
like that - they are as pure as the 
driven snow. Except that, for the lay- 
man, it is hard to understand how one 


generation's heresies become the 
orthodoxy of the next - plate tecton- 
ics, for example. 

The trouble is that the general pub- 
lic does not see the pure scientist at 
wort in his beautiful ivory laboratory 
of moral integrity - it sees the results 
down the line; the experiments on 
embryos, the extravagantly expensive 
high-tech surgery, the environmental 
consequences of Chernobyl, the 
genetic engineering, the astonishing 
array of lethal substances designed to 
kill or maim. It sees Hiroshima. Aid, 
quite simply, it is scared stiff because 
it feels the whole huge techno-scien- 
tific machine is out of control, and 
that the global environment is going 
to be damaged irreparably. 

Of course, it is not fair. That is not 
what real science is about I know 
that You know that But if Postgate 
is really wanting to know why science 
is under attack, it is more to do with 
the loss of butterflies from toxic spray 
than from fanatical Christians reject- 
ing a scientific world view. I owe my 


ence. No complaints there. 

More intriguing, to my mind , is the 
issue of moral superiority. Let us turn 
the question round. Can science offer 
humanity a moral code to live by? 
The scientific method of meticulous 
observation and controlled experi- 
ment, from which human factors are 
excluded as far as possible, does 
require qualities of integrity and 
truthfulness of a high order. 

But science can never ten us the 
value of anything. What is the moral 
status of the human foetus? Is life 
sacred? Should we act with altruism? 
Why is Rembrandt so important? 
What has Sing Lear to teD us about 
.the hnmnn condition? Why hag Jesus 
of Nazareth won the hearts and lives 
of so many people? Why is it impor- 
tant to care for grossly handicapped 
children? Is eugenics as a political 
programme morally wrong? 

All those questions, and many more 
like them, cannot be addressed by 
pure science - nor are Fellows of the 
Royal Society better qualified to 
address them than moral philoso- 
phers, historians or theologians. Yet, 
these are the kind of religious ques- 
tions which we have to address if we 
are to set out to live the good life or 
create a humane society. 

Science has often tried to dismiss 
these fundamental human issues by a 
systematic reductionism with an arro- 
gance which itself has, in the past, 
been cause enough for an instinctive 
distrust in the non-scientlfic commu- 
nity. But it seems to me that more 
and more scientists are now open to a 
new awareness of the boundaries and 
limitations of their own discipline's 
contribution to h uman wisdom. There 
is nothing like a hit of chaos to teach 
us humility. 

Science at its best is - or can be - 
the paragon of intellectual integrity 
proclaimed by Postgate. But religion 
also has its better aspects. Should not 
an objective scientist list and 
acknowledge them - and gladly? Is 
that not part of his moral integrity? 

Would the extraordinary shift of 
power from white to black majority in 
South Africa have taken place with 
such astonishing speed and calm if 
the Chris tian churches, and the val- 
ues of reconcttLatkm and multi -racial 
community which they preached, had 
not been a constant and pervasive 
influence in the leadership for 50 
years? They, at least, would not have 
been better off without that moderat- 
ing moral influence. 

The backlash against science - 
where it really exists - is a genuinely 
worrying feature of a secular society 
increasingly prone to mystical imag- 
inings from a world of fantasy, sci- 
ence fiction and New Age gurus. But 
it most be equally worrying to the 
thoughtful Christian, for whom the 
rational pursuit of truth is just as 
important as it is for the FRS. And it 
is worth rioting that some Fellows are 
also thoughtful Christians. 


life - twice - to modern medical sd- 


As They Say in Europe / James Morgan 

Faking a grand occasion 

print the linage of a seat belt 


The Nature of Things 

Let there 
be light 


T here are many kinds 
of foreign correspon- 
dent. There are those 
who say. In effect: 
-Dreadful things go on here 
but Tm going to do my best to 
tell the story straight” Such 
people, those who divorce 
themselves from their own 
prejudices, were found in 
Johannesburg yesterday and 
are in Beijing today. 

T hen , there are these who 
try to convince their readers 
that their patch is not only 
important but also dive rting , 
however harsh and unattrac- 
tive it might seem - Moscow or 
Tokyo for example. 

Another group, which I call 
the "Paris Club", attempts to 
combat long-held prejudices 
back home. Its members 
recount, all too often, how well 
the French do things (The- 

metro-runs-on-time" is a 

favoured theme). In Bonn, 
meanwhile, the foreign press 
corps does its best to make 
Germany’ exciting - and usu- 
ally fails. 

Which brings us to the 


Frankfurter AUgemeine’s man 
in Rome, Heinz-Joachim 
Fischer. He has the most 
envied job among German for- 
eign correspondents. 

Italy provides the nearest 
thing to the German idea of 
paradise on earth. Fischer, 
however, rarely succumbs to 
the country’s charms and, in 
lact, finds It rather objection- 
able. But he is always a good 
read, and a must for anyone 
seeking to come to grips with 
the Italy of today. 

Fischer's curtain-raiser 
before last week's summit in 
Naples reflected perfectly his 
approach, an amalgam of eru- 
dition and contempt He noted 
how lucky it was that reports 
of parliamentary investigations 
did not get read. For, if they 
were, the seven leaders might 


have thought twice about hold- 
ing a summit in Naples. 

The report produced last 
December on the workings of 
the Neapolitan Camorra made 
the Mafia seem like a Rotary 
Club. The Naples region pro- 
duces twice the national aver- 
age of murders, more than 
twice the number of officials 
driven from office as in Sicily, 
and an industrial structure 
based on fraud and corruption. 

Yet, Naples was dressed up 
for the summit Had not the 
authorities done a good job? 
Not according to Fischer. 
“Chancellor Kohl and Presi- 
dent Clinton, like the Tsarina 
Catherine H 00 her Crimean 
trip with Count Potemkin in 
1787, are expected to praise the 
order and prosperity of Naples, 
a city where drivers prefer to 


on their shirts rather than 
actually use a real one." 

The Idea of Naples as a 
Potemkin village, where every- 
thing is faked for the grand 
occasi o n, provides an insight 
that adds to one’s understand- 
ing of summits, ft also, uncon- 
sciously, came to dominate 
much of the comment on the 
event itself There was far less 
in it than met the eye. 

Le Figaro's editor, Franz- 
Oiivier Giesbert, pursued the 
theme with reference to France 
which, he said, “freely con- 
fuses the cosmos and the farm- 
yard". There followed a quota- 
tion from Cocteau: “What is 
France? I ask you. A cock on a 
dungheap. Take away the 
dungheap, the cock dies.” 

The summit had played a 


vital dungheap role, and send- 
ing troops to Rwanda meant 
France could crow as the con- 
science of the world. Trance 
exists, the G-7, sorry G-6 (Rus- 
sia included), have recognised 
it That is one of the lessons of 
the summit...” Charging on 
through his thicket of meta- 
phors, Giesbert concluded that 

it was “a summit of the seven 
dwarves. Without Snow 
White". 

A different view was 
expressed in Lg Siampa, which 
headlined its comment: “The 
chimera of a world govern- 
ment.” It argued tha t while the 
G-7 was the pinnacle among 
international bodies designed 
to construct a better world, it 
should , in feet, do nothing at 
alL 

According to the newspaper. 


the very act of trying to govern 
the world was doomed, for it 
made things worse. There was 
a “big bang" in 1914 when old 
empires started to explode into 
new states, and that had not 
settled down. Neo-nationalists 
and neo-fnndamentalists 
resented anything that 
smacked of trying to impose 
any order, new or old, and G-7 
political declarations were, 
therefore, a waste of time. 

I once knew a house in 
Devon where the haD was foil 
of 18th century painted figures 
cut from wood panels. The lone 
inhabitant found it comforting 
to join these guests from 
another world. With modern 
technology, it should be easy 
enough to construct a Potem- 
kin. summit which would be no 
less Impressive than those we 
enjoy today. 

Next year’s venue, a spot 
known as Halifax, Nova Scotia, 
would be an excellent place to 
start 

■ James Morgan is economics 
correspondent of the BBC World 
Service. 


H ow do you make 
everyday materials 
give out light with- 
out beating them? 
Scientists have recently pro- 
duced two new solutions in the 
form of plastics and silicon 
that glow when an electric 
voltage is applied. 

Both have immense commer- 
cial potential. Light-emitting 
plastics could make paper-thin 
screens for televisions and 
computers. These would be Ear 
i tougher and more adaptable 
than either the cathode ray 
tubes used for conventional 
televisions or the new genera- 
tion of liquid crystal displays. 

light emission Iran silicon, 
the main material of electronic 
chips and the semiconductor 
industry, could lead the way to 
tiie super-fast optical proces- 
sors that have been a dream of 
the computer industry for a 
long time. Such devices, run- 
ning on photons (pulses of 
light), would be much more 
efficient and compact than the 
present generation of comput- 
ers which use electrons (pulses 
of electricity) to process data. 

UK researchers have played 
a leading part in both 
advances. Leigh fianham and 
colleagues at the Defence 
Research Agency, Malvern, 
discovered how to make sili- 
con glow. Richard Friend, 
Andrew Holmes and other sci- 
entists at Cambridge Univer- 
sity have led the development 
of light-emitting plastics. 

Both groups have taken out 
strong patent protection, and 
the Cambridge scientists have 
set up a company, Cambridge 
Display Technology. If the dis- 
coveries live up to expectation, 
they will bring in significant 
royalty income; bnt there 
seems Utile chance that what 
remains of the UK electronics 
industry will be able to make 
either plastic displays or opti- 
cal computers on a large scale 
for world markets. 

The common factor behind 
the two developments Is a new 
understanding of the way elec- 
trons behave on what scien- 
tists call the nano-scale. (Its 
name comes from the nano- 
metre, a unit of length equal 
to a millionth of a millimetre.) 
The trick is to construct spe- 
cial conditions under which 
electrons release energy as 
light, rather than the usual 
heat 

Leigh Canham’s process for 
making light-emitting silicon 
is deceptively simple. He 
treats a conventional silicon 
wafer, used for malting chips, 
with highly corrosive hydro- 
fluoric acid. This eats away 
more than 80 per cent of the 
material 

The porous silicon sponge 
left behind is, in effect, a web 
of extremely fine silicon wires, 
each 704)00 times thinner than 
a human hair. When electric- 
ity passes through such thin 
wires, some or the electrons 
lose energy by emitting visible 
fight The colour of the radia- 
tion varies With the thirkqtx re 
of the silicon. 

Gan ham exp iates; “The con- 
ventional semiconductor 
industry uses lithographic 
equipment costing millions of 
pounds. Our structures can be 
made to a bucket It is really 
cheap and fast to process sili- 


con wafers in this way." Even 
so, there are several essential 
production tricks - for exam- 
ple, how to prevent the silicon 
sponge collapsing as the add 
dries - which would not be 
obvious to an imitator with a 
bucket of hydrofluoric acid. 

Until now, researchers have 
had to use more complex and 
expensive materials, such as 
gallium arsenide, as light 
sources for experiments in 
optical computing. If silicon 
itself can give off light reliably 
- and, despite the progress so 
far, tiffs has yet to be proved - 
then the outlook for optoelec- 
tronics will be far brighter. 

Although optical computers 
are, potentially, the most 
important application. Can- 
ham says light-emitting silicon 
could also lead to a new dis- 
play technology, particularly 
for high-resolution screens 
connected directly to silicon 
circuitry, it could then be com- 
peting with the new light- 
emitting plastics. 

These are a development 
from the electrically conduct- 
ing plastics discovered in the 


Clive Cookson 
reports on 
a British 
breakthrough 


1970s. When you apply a volt- 
age to ordinary plastics, noth- 
ing happens. Bnt they can 
carry electricity like a metal if 
they have a special molecular 
structure in which mobile elec- 
trons can run along the long 
polymer chains. 

The Cambridge group first 
achieved light emission in 
1990 by sandwiching a con- 
ducting plastic, PPV, between 
oppositely charged electrodes. 
Tim positive terminal removes 
electrons - which is equiva- 
lent to pumping positively 
charged “holes” into the plas- 
tic. When electrons from the 
negative electrode fall Into 
these holes, they give off 
energy in the form of photons. 

Over the past four years, the 
Cambridge scientists and their 
main competitors at the Uni- 
versity of California have 
manipulated the structure of 
their light-emitting plastics to 
improve their efficiency - now 
at 4 per cent, compared with 
10 per cent for an ordinary 
light bulb - and tune their 
wave-lengths to give a range 
of colours. The main problem 
still to overcome is that PPV 
and its derivatives break down 
and stop glowing with 
long-term use. 

Althongh the scientists do 
not understand felly the rea- 
sons for this instability, they 
are confident it can be over- 
come. And just as porous sili- 
con could encroach on the 
main potential market for 
plastics - displays - the con- 
verse is also possible, if the 
plastics can be made compati- 
ble with integrated circuits, 
they will be potential light 
sources for optical computers. 

So, a photo-finish is likely 
early next century In the race 
between light-emitting silicon 
and plastic to achieve forge- 
scale commercial production. 



BOOKS 


Poignant poetry of the past 

Christopher Patten, governor of Hong Kong, reviews the evocative memoir of an Irish civil servant 

minin g the limits off existence, the 


A s a junior minister in 
Belfast, opening a red 
box for the first time, 
I was disgracefully 
spoiled. My perma- 
nent secretary in the Northern 
Ireland civil sendee was a Lancas- 
trian Ulsterman called Norman 
Dngdale. He is a fine poet (also 
published by the admirable Blade- 
staff Press) and a student of Cavafy 
- and maybe, not surprisingly, the 
best drafter of a ministerial sub- 
mission 1 have ever encountered. 

And then, such are the riches of 
the Province, when Dngdale 
retired, be was followed by Maurice 
Hayes, a former town clerk of 
Downpatrick, chairman of the Com- 
munity Relations Commission and 
a senior mechanic in most of the 
efforts is the 1970s to broker civi- 
lised constitutional deals between 
the warring tribes of Ulster. 

Maurice Hayes, who went on to 
become Northern Ireland’s 
Ombudsman and today's chairman 
of the Ireland Pond’s advisory com- 
mittee, is a Gaelic scholar and poly- 


math and a high-scoring member of 
Ireland's "Round Britain Quiz” 
team on BBC Radio. A trenchant 
analyst of politics and a brave and 
decent public servant, he has like 
Mary Robinson or Garret Fitter- 
aid, all the wit, the learning, the 
courage and the crack, that give 
the Irish at their best a head-start 
in the charm stakes. 

Now he has written a book about 
growing up in a seaside village in 
County Down before the war. And 
if than is a more magical album of 
childhood memories, real or fan- 
tasy, I would like to know what it 
is. As Seamus Heaney points out in 
his introduction. Sweet Killough is 
part-census, part-inventory of 
births and deaths, rumours and 
gossip, tides and winds, moons and 


stars, harvests and catches, trains, 
boats, horses, sayings and songs. 

KUlough was a self-contained 
community into which the outside 
world encroached little. The big- 
gest employer was the brickworks, 
not a very sound foundation for the 
local economy given the state of 
the building trade and the tendency 
of the local bricks to split and spall 
and let in the wet Otherwise fish- 
ing and fanning provided the jobs. 

Hayes described the fanning cal- 
endar - the ploughing, the sowing, 
the harrowing, the threshing - and 
reminds us of the “fragility of 
crops at the mercy of the weather”. 
But above all, in sight of the 
Monrnes and the Isle of Man, K3- 
loogh is made by the sea: "the sea 
is everything, everywhere, deter- 


weather, the rotation of activities, 
and often life Itself and death”. 

We read of the shore, the jetsam, 
the bays, the piers, the rocks, the 
wrecks, the drownings, the cod. the 


SWEET KILLOUGH: LET GO 
YOUR ANCHOR 
by Maurice Hayes 

The Biackstqff Press £7.99. 240 pages 


mackerel, the lobsters, the limpets, 
the nuns stranded like penguins by 
the changing tide, and the mari- 
ners’ tales which link the coast 
with more exotic landfalls, Table 
Mountain in Cape Town or Sugar 
Loaf is Rio. 

Killongh itself was mercifully 


free of religions bigotry though 
reminded of it from time to time by 
riots and sectarian rites np the 
road in Belfast. "The teU-tale signs 
by which religion was treated: the 
presence of rosary beads . . . the 
faa are to say which instead of who 
in the third word of the “Onr 
Father” ... to be called Liam 
instead of Billy . . none of these 
things mattered in Killongh. 

Hayes grew np in a Catholic 
home in which the superstition of a 
fishing village fused with the 
deeper rhythms of the church's 
liturgical yean abstinence and 
fasts. Ash Wednesday and addi- 
tional rosaries, and always the 
wiinntia of ritual and indulgences, 
for example “how many prayers 
(known faintly as ejaculations) 


were necessary to bring about a 
desired end.” His father was from 
Waterford, had fought for the King 
in Mesopotamia and India, and 
even received a patriotic wound, 
though for playing football not 
from a Turkish scimitar. 

H ayes draws a marvel- 
lously evocative picture 
of his mother, to whom 
childhood illness inevi- 
tably drew him very dose, as well 
perhaps as the fact that as the sec- 
ond of twins he had been expected 
to die, until “coaxed Into life by the 
heroic efforts of the mid-wife and a 
couple of drops of brandy”. We see 
his mother sewing and making 
jams and marmalade, apple jelly 
and puff pastry, we learn of her 


careful collection of people with 
cures for warts and haemorrhages 
and ring worm; we hear her apho- 
risms and the precepts learned 
from the nans and from her own 
mother. She was obviously a 
remarkable woman, and at the 
book’s end is borrowing money to 
buy a rundown commercial hotel in 
Downpatrick to help pay for a bet- 
ter education for her children. As 
In other happy childhoods, she is 
the heroine of the tale - at one 
moment bent over her sewing 
machine, "her hair tumbled down 
on one side, masking the work”, 
seeming to envelope mother and 
son in their own private tent And 
then, alas, she is knocked over on 
her way back from the station by 
touring cyclists, and after that she 
never seemed young again. 

It Is customary at this time of 
year to give advice on the books 
that should be packed for the beach 
or tlx river bank. All 1 can say, as 
politely as possible, is that If you 
do not take Sweet Killough with yon 
this year, you are mad. 


White 
Chief in 
a Velvet 
Jacket 

Jackie Wulhchlager on the life of 
Robert Louis Stevenson 



Endpapers from the 1911 Cassatt Classic edtion of Treasure tetand' painted by the greet American Bustrator KC. Wyeth, reproduced in ‘Pictures of 
the Mind; The Bustrertsd Robert Louie Stevenson* (Cenongate Press £1495 paperback, 88 pages] with an introduction by Dr John Scatty. 


The voice of 
moderation 

David. Walker discusses the legacy 
of a great 16 th century thinker 


F ans called him Vel- 
vet Jacket, the lov- 
able. smoking 
Bohemian artist. 
To others he was 
Seraph in Chocolate, an arch 
fin-de-si&cle sensualist, possibly 
over-sweet. On the island of 
Samoa, he was White Chief, 
protector of a tribe of former 
cannibals. By the time Robert 
Louis Stevenson died in 1894, 
aged 44. he had become such a 
mythical, untouchable figure, 
that, reviewing an early book 
of letters, a sceptical Henry 
James said: “one smells the 
things imprinted'’. 

Now. in the centenary year 
of his death, a magisterial 
eight volumed edition of Stev- 
enson's letters gives us a full 
rich portrait of the writer. Told 


THE LETTERS OF 
ROBERT LOUIS 
STEVENSON, VOLS I 
and II 

edited by Radford A. 
Booth and Ernest 
Mehew 

Yale £74. OS each, S25 and 
352 pages 


in his own voice - or rather in 
the two voices of someone 
whose imaginative existence 
propelled his actual one - his 
strange short life is riveting. 
On the one hand, RLS was a 
romantic, living out the swash- 
buckling fun of Kidnapped and 
Treasure Island on voyages to 
the South Seas and a marriage 
to a fast, gun-carrying Califor- 
nian. On the other, there 
emerges a decent, everyday 
guy who cared about food and 
the weather, ran out of cash, 
and wrote home each week to 
his mum. RLS is already enjoy- 
ing a revival as a Victorian 
New Man - emotional, honest, 
tolerant, a model of equality in 
his marriage and his friend- 
ships with South Sea islanders. 
These letters will enhance both 
his literary reputation and his 
popular image. 

Like many children’s writ- 
ers. he never quite grew up. 
and most of the letters in these 
two volumes - ending when he 
was 29 - are to his parents, or 


the art critic Sidney Colvin 
and literary hostess Frances 
Sitwell who supported him 
when a religious row drove 
him from his strict E dinb urgh 
family. These form a journal of 
this critical point in his life, 
when be was fighting for the 
freedom to be hims elf and to 
write. In becoming “a horrible 
atheist", his father said, “you 
have rendered my whole life a 
failure"; to his mother it was 
“the heaviest affliction that 
has ever befallen me.” 

To RLS, the pampered only 
rhilri , the break with home was 
devastating. As Frances 
Sitwell, “a sybylline beauty 
over which time had no 
power”, guided him through 
the storm, he became infatu- 
ated with her. He addresses 
her as Madonna: 'Tour sympa- 
thy is the wind in my sails," 
and “you are the very texture 
of my thought." Colvin was 
also in love with her and after 
a 30-year courtship, she mar- 
ried him. Initially- a rival, RLS 
was devoted to Colvin. “1 can 
see no harm in my dying like a 
burst pig upon some outland- 
ish island.” be tells the older 
man, “but if you died, without 
due notice and a chance for me 
to come and see you, I should 
count it a disloyalty, no less.” 

RLS was always sickly: the 
rapidly changing addresses 
here as he moved from spa to 
spa is the journey of a typical 
Victorian consumptive. After 
his religious crisis, convales- 
cence in the south of France 
was psychological as well as 
physical, it healed wounds, and 
soon he was writing, in un- 
Scottish fever pitch, “my dear 
father and mother, I wish to do 
no more today than tell you 
how much you are in my 
thoughts, and bow much 1 love 
you . . . please never imagine 
that you will lose me, or I lose 
you, until death interferes... 
do believe that 1 love you with 
all my heart" 

As his biographer Ian Ben 
pointed out. Stevenson's style 
is a sick man's response to the 
world heightened, distanced, 
specific. No letter writer has a 
more intense feel for places. 
From Scotland “very cold in 
body and black at heart," he 


writes one summer of the 
“high wintry winds, a nd the 
grey sky and faint northern 
daylight," and air so invigor- 
ating “that my scalp was sore." 
In France he swoons over sun- 
trapped valleys and hikes 
across the C6vennes with his 
donkey Modestine” (“65 francs 
and a glass of brandy’’), taking 
just a change of clothing and a 
whisk - for his breakfast cock- 
tail of raw eggs. One recalls 
“many is the long night I’ve 
dreamed of cheese - toasted, 
mostly", in Treasure Island. 


The same mix of thrills and 
homeliness that make his sto- 
ries so sbudderingly authentic 
informs these letters. 

“You may paddle all day 
long,” be says of a canoeing 
trip in Belgium in 1876, “but it 
is when you come back at 
ni ghtfall and look in a familiar 
room, that you find Love or 
Death awaiting you beside the 
stove; and the most beautiful 
adventures are not those we go 
to seek.” He ended that trip 
with a visit to the Barbizon 
artists, and stopped one night 


outside the hotel Chevillon 
near Fontainebleu. Peering 
through to the dining room, he 
saw a dark, lively American 
woman and. to screeching 
delight from the artists, fal- 
tered through the window to 
sit beside her. 

She was a married mother 
called Fanny: she liked him 
but was unnerved by his habit 
of bursting into tears. A year 
later, she cabled from Calif- 
ornia in distress. RLS caught 
the next boat across the Atlan- 
tic, rescued her from a disas- 


trous husband, and married 
her. “Count on £250 a year," 
his father cabled, announcin g 
a recondliatory allowance. 

Volume two leaves RLS in 
the middle of this affair Many 
figures from Victorian Britain 
have come to life, from the 
crippled editor W.S. Henley, 
model for Long John Silver, 
knocking down Oscar Wilde 
with his stick, to the “lighth- 
ouse Stevenson's" touring the 
coast to show off their beacons. 
The remaining six volumes 
promise to be as entertaining. 


I llegitimate, orphaned in 
adolescence, abandoned 
into an institution by his 
guardians - the auguries 
were not good. 

Yet Erasmus of Rotterdam 
became one of the greatest 
think ers and scholars of his 
age, with profound influence 
on Europe in the early 16th 
century and beyond. 

Through the turbulence of 
religious divide and war. his 
was a voice of moderation and 
reason heard - and sometimes 
hearkened to - across the con- 
tinent. 

The Emperor Charles V 
made him a member of his 
council; his works were read 
not just in the Germanic and 
Spanish heartlands of the 
Habsburg empire and France. 
Italy and England but also in 
the further flung corners of 
Europe like Hungary and 
Poland. He corresponded with 
reformer and traditionalist 
alike across the great swathe 
of European intellectual 
thought 

Yet within a few years of his 
death his works were placed on 
the Papal Index of banned 
books. Erasmus laid the egg 
which Martin Luther hatched, 
it was said, and be was seen as 
dangerously subversive. 

The strands and legacy of 
this subversion are ably 
explored by Professor A.G. 
Dickens and Dr Whitney RJ). 
Jones in a new study of 
Erasmus' philosophy and the- 
ology. 

T o Martin Luther in 
1519, Erasmus set out 
one of the fundamen- 
tals underlying his 
approach to the quarrels of a 
bitterly divided continent: “I 
think we get Anther by cour- 
tesy and moderation than by 
clamour. That was how Christ 
brought the world under his 
sway . . . Things which are of 
such wide acceptance that they 
cannot be torn out of men’s 
minds all at once should be 
met with argument, close- rea- 
soned forcible argument rather 
than bare assertion.” 

Toleration remained the hall- 
mark of his thinking , but there 
was no precursor here of a 
multi-faith society In which all 
beliefs are accorded eQual 
respect. 

“Let them burn, by all 
means, those who fight the 
teaching of the articles of the 
faith or something of equal 
authority by the consensus of 
the church.” he was to write as 
the schisms grew. 

But the condemnation was 
tempered; heresy merited 
bunting at the stake only if 
it was “linked with sedition 
or any other crime which 


the laws punish by death,” 

His aim was to avoid sebum 
and to maintain the polity, (t 
was. he argued, important to 
understand bow few things 
were basic to a true faith and 
how false scholarship had per- 
verted the essentials and been 
used in the pursuit of power at 
the expense of peace. 

Above all. be believed, war 
had to be avoided; those who 
advocated it, be they popes or 
king s, were guilty of the worst 
of sins. 

Universal government, he 
maintained, was no answer to 
the imperative of peace; it 
could merely lead to a bigger 
tyranny than was possible in a 
world of fragmented states. 

In the 16th century, these 
sentiments were seen as highly 
seditious. The wonder is that 
Erasmus himself survived, 
respected till the end; it was 
only after his death that bis 
works were banned. 


ERASMUS THE 
REFORMER 
by A.G. Dickens and 
Whitney R.D. Jones 

Methuen £25. 36 7 pages 


He may have been a critic 
of much of the prevailing 
order, but he gauged the limits 
to which criticism could be 
taken. Vigorous refutation 
awaited those who, seeing in 
him an ally, sought to Inter- 
pret his writings beyond those 
limits. 

How much of a legacy has he 
left? For Professor Dickens and 
Dr Jones, the influence of Eras- 
mus is profound. He would, 
they suggest, have been in the 
vanguard of today's ecumeni- 
cal movement And bis influ- 
ence in shaping the th inkin g of 
those around him and who 
came after him meant he 
helped to shape the world we 
live in. 

There is much that Is recog- 
nisably “modern” in his out- 
look, in contrast with others, 
such as Martin Luther, who 
had such a big influence on 
Europe's development 

Though steeped in the ruling 
currents of the time, be fre- 
quently rose brilliantly above 
them. IDs understanding, his 
insistence on distinguishing 
between substance and form 
and examining basic princi- 
ples, and above all his human- 
ity ill umina te a world in which 
rival certainties battled for 
supremacy. 

The world today is as 
divided, though driven by , 
doubt rather than certainty- 
The Rr asmian approach, as we 
stumble our way through, has 
as much validity now as then 


T ito was dying. But anyone 
watching the thousands of 
ordinary people who in 
1980 packed a square in 
Skopje for a spring festival of sing- 
ing and folk dancing would have 
concluded that Tito’s Yugoslavia 
was very much alive. 

Even in Pristina, capital of neigh- 
bouring Kosovo province, where 
ethnic Albanians drank their defi- 
ance of the Serb authorities it 
seemed - certainly to the younger 
generation - that the Old Man's fed- 
eral framework, however fragile, 
was simply too precious to be 
allowed to break. 

Tito knew how fragile it was. 
Nine years before he died, Jasper 
Ridley records, he warned Croatian 
Co mmunis t party leaders who had 
met to discuss an outbreak of 
nationalist separatism: "Under the 
cover of 'national interest', all 
hell is assembling ... In some 
villages the Serbs, out of fear, 
are drilling and arming them- 
selves ... Do we want to have 1941 
again?'’ 

Foreigners, he said, were specula- 
ting that after his death - he was 
then 79 - "the whole thing will col- 
lapse”. Meanwhile Brezhnev had 
mischievously offered to lend him 


Benign dictator or corrupt despot? 

Whatever one thinks of Tito , he recognised the dangers inherent in the Balkans , says Christian Tyler 


Soviet troops to suppress the Croat 
militants. 

Joslp Bros was a Croat himself. 
Yet he had no time for the absur- 
dities of myth and language with 
which his heirs have attempted to 
justify the killing and the “cleans- 
ing”. However cruel his courageous 
wartime leadership of the Partisans 
may have been and however ruth- 
less his subsequent treatment of 
political opponents he could be 
pragmatic to the point of generosity 
when national unity was at stake. 

The topical question, of course, is 
to what extent Tito and the gov- 
ernment he led can be held respon- 
sible for the dreadful civil war that 
has followed his departure. 

To some he is a benign dictator - 
the only good advertisement com- 
munism ever had - whose personal 
charisma and political vision con- 
verted ancient trib alisnas into a con- 
vincing national identity. To others 
he is a sharp-suited, luxurious ex- 


revolutionary whose corrupt, 
extravagant regime was waiting to 
be hijacked by power-grabbing 
nationalists such as the Serb, Slobo- 
dan Milosevic, and the Croat, 
Franjo Tudjman. 

Both biographers incline to the 
first interpretation, but neither sup- 
plies an answer. 

R idley’s book is more his- 
tory than biography. 
Being the historian he is, 
he not only maps out the 
life but carefully and usefully sup- 
plies the world context in which 
Tito operated, from the break with 
S talin in 1948. through the depths of 
toe Cold War to his reincarnation 
as a world statesman, leader of the 
“non-aligned" nations. Ridley also 
scorns the theory advanced by 
Michael Lees in The Rape of Serbia 
that Winston Churchill was duped 
by left-wing intelligence advisers 
into switching British wartime sup- 


TITO 

by Jasper RidJey 

Constable £20. 495 pages 


TITO AND THE RISE AND 
FALL OF YUGOSLAVIA 
by Richard West 

Sindalr^Stnensan £20. 436 pages 


port from Mihailovic's Cetniks to 
Tito’s Communist partisans. 

But little emerges of Tito the man 
that has not already been recorded 
by his wartime comrades: Vladimir 
Dedijer in his politically-correct 
hagiography or Mliovan Djilas in 
his sharp, dissident and more sub- 
jective portrait 

With his chosen perspective, Rid- 
ley's Tito reads like a well-re- 
searched textbook, full of back- 
ground but short of foreground. The 
pace quickens and lightens in the 


final chapters - there is a good 
anecdote about Tito’s boar-hunt 
with an unsportsmanlike Ceausescu 
- but Ridley makes no attempt to 
analyse the man or his works, to 
offer a biographer’s verdict 

Richard West’s book is really two. 
He set out to write his memoirs of a 
country he has been visiting as a 
journalist since 1951. His publisher 
suggested a biography. The result is 
a quick summary of Balkan history, 
a cursory narrative of Tito's life and 
a detailed indictment of the Croats, 
from the Catholic Ustasha’s war- 
time butchery’ of Serbs to the revi- 
sionist ideology of toe current Croat 
leadership, with a visit to the shrine 
of Medjugorje on the way. 

The book concludes with anec- 
dotes and reminiscences whose 
effect is to illustrate rather than 
illuminate toe Serbs’ “revenge” (a 
revenge In which the Moslems have 
once again become the proxy vic- 
tims). Tito has vanished. His biogra- 


pher muses vaguely about history 
and religion as the inevitable 
causes of the war, but it is a view 
contradicted by refugees of the con- 
flict and by the humble folk that 
West himself has interviewed on his 
travels. 

Tito always divided outside 
opinion: ambivalence was one of his 
political gifts. Courageous, charm- 
ing, autocratic, fond of dogs, hunt- 
ing and women, he has exerted a 
particular fascination over the 
British, from the soldiers who met 
him in the mountains to modern 
historians at their desks. He 
inspires extremes of admiration and 
distaste. On balance his reputation 
seems to have been enhanced by 
the deluge which has followed his 
death. It may be too soon for his- 
tory to judge. 

In the meantime, if one had to 
make room on toe bookshelf for one 
more biography of Tito, it would 
probably be Ridley's. 



Josip Broz Tito: the father of 
Yugoslavia 
















1 



a. ' ' 

r 




WEEKEND FT XIX 


ARTS 


‘Canterbury 
Tales’ on the 
vicarage lawn 

Martin Hoyle finds more postcard 
humour than Chaucer in this revival 


A cross the road from the 
Garrick Theatre on Thurs- 
day evening a group of 
Morris Men, biologically if 
not politically corrected to Morris 
Women, Jingled their stuff, ftm j dp the 
theatre ominous signs directed os “to 
the vicarage lawn". In the auditorium 
we were assailed with the determined 
jollity of actors acting normal people, 
uttering lines like “I'm the local vicar 
here” and “It's lovely weather, just 
what we needed" as they mingfori in 
the stalls with the inso ucian t sponta- 
neity of Desert Storm. At the appear- 
ance of the ultimate deterrent, note- 
books and pens in the hands of some 
of my colleagues, their cordiality 
became less marked and they turned 
their frozen smiles elsewhere. 

The mood of village theatricals is 
deliberate. The Latest resurrection of 
Michael Bogdanov’s 1978 Young Vic 
adaptation of The Canterbury Tales is 
set daring the annual Geoffrey Chau- 
cer Storytelling Competition super- 
vised by the vicar of Upper HopewelL 
This framework cunningly licences 
the muse of writer Robin Davies to 
roam through such well- loved wmiir 
exchanges as “Can I have the actors 
on the lawn, please?" Excited female 
voice: “You can have me, vicarT and 
*Tm the Reverend Nicholas Nunn." 
Brian Glover, heckling from the audi- 
ence: "Knickerless nun? Oo!” There 
are time-honoured references to 
“spanking tarts” and competitors 
“getting the biggest clap". If the 
thrust and parry of “You’re the fakirT 
“1 beg your pardon!” and the spirit of 
Donald Magill postcards are your sort 
of thing, yon will find this a painless 
introduction to the first great Rn g tish 
poet 

Ah yes, Geoffrey Chaucer. The ama- 


teur thesps of Upper Hopewell mount 
(ho ho) five of his tales, addle the 
audience is coerced, panto-style, into 
demanding a sixth, the Miller’s Tale, 
needless to say, from the previously 
proscribed Brian Glover. Your ftn »l 
receptiveness to Peter James' produc- 
tion depends on how you take Mr 
Glover, voice of a thousand TV com- 
mercials (even the theatre posters 
refer to “Chaucer with nowt taken 
out"), God in the National’s Mysteries 
and remorselessly jovial professional 
Yorkshi reman Hare he tu rns up as 
everything from a £aMr to a busty 
barmaid in costumes that ingeniously 
incorporate an elephant and the bar 
respectively. What is more, much 
more, is that he RTIh in with what 
used to be called saloon bar stories, a 
few of which go a long way, some 
decidedly too ter. 

When not cringeing, or blossoming, 
before this campaign of ferocious 
comic attrition, you can find nwwih to 
admire in a cast that gives signs of 
being rather classier than its mate- 
rial. Richard Cant, an accomplished 
young comic, and the pretty Kather- 
ine Oliver deserve mention for gal- 
lantry that includes exposing bare 
bottoms in the Miller's Tale. Nicolas 
Lumley's vicar puts over hoary old 
fitcetiousness as if it were fresh; but 
then the whole company deserves a 
dearer brief. Is this a family show? It 
strikes me as too unremittingly, leer- 
ingly smutty. Is it an adults only 
show? It is too rium p mgfy unsophisti- 
cated. I have an awful idea that it 
may be fitted into a sixteen-pin ts-and- 
a-vindaloo evening by office parties or 
those still suffering withdrawal symp- 
toms over the World Cup. I would 
hesitate to recommend it to Eng. Lit 
students. 



Brian Glover as the Mfflan tfw cast is classier than tin material moow ui» 


Scrapyard to splendour 


Susan Moore admires the V&A ’s new Ironwork Gallery 



A French balcony of 1770, rescued from a ctd-de-sac in VcfSaKtes 


T he Victoria & Albert's 
unparalleled ironwork col- 
lection is housed in one of 
the oddest spaces in any 
museum. Spanning the entire 220m 
width of the building at first-floor 
level and at times less than five 
metres wide, it is more flyover than 
gallery, top lit by glass domes and 
pierced by light wells affording unex- 
pected bird's-eye-views of the galleries 
below. 

Two years ago the space was closed 
for essential repairs to the roof Yes- 
terday, the redisplayed Ironwork Gal- 
lery re-opened to reveal what is one of 
the most visually stimulating gal- 
leries the museum has to offer - at 
least in part Funding has only been 
available for the first phase of the 
project, and none forthcoming for an 
accompanying catalogue. Indeed no 
publication on this extraordinary ad- 
lection is currently in print 
As if to emphasise the lack of cash, 
the display ends abruptly with a sten- 
cil representation of the massive 
screen designed by George Gilbert 
Scott for Hereford Cathedral. This 
tour-de-force of Gothic Revival metal- 
work still languishes in store await- 
ing a sponsor for its restoration. The 
sole elements in place over the stenr 
dl, like 3D jigsaw pieces, are the “ter- 
racotta” figures of Christ and a Choir 
of Angels ingeniously manufactured 
out of electroformed copper. 

Dismantled and removed from the 
cathedral in 1967, the Hereford screen 
is also eloquent witness to the metal- 
work department's enterprise in 
architectural salvage on a monumen- 
tal scale. Many of its treasures are 
here as a result of church and state's 
cavalier disregard for its heritage - 
from the 13th-century wrought-iron 
grilles from Chichester Cathedral res- 
cued from a scrap-metal merchant in 
1896, to an Art Nouveau fireplace 
designed around 1904 by Charles Ren- 
nie Mackintosh and pulled out of the 
Willow Street Tea Rooms in Glasgow 
before they were demolished. 

A 12th-century wooden chest orna- 


mented and protected by elaborate 
S-scrolIing iron hinges and latchwork 
came from the derelict St Albans 
Abbey, the 17th-century polychrome 
chandelier rods on display once 
adorned Wren’s St Michael Queen- 
hitbe, demolished in 1876. Garden 
gates stand as a solitary survivor of 


Robert Adam's Lansdowne House in 
Berkeley Square; the elegant neo- 
classical lampholder a poignant 
reminder of one of the London's most 
tragic losses, the Adams' Adelphi 
buildings off the Strand. This sad lit- 
any continues with the disembodied 
balconies, balusters and grilles from 


France, Italy, Germany and Spain. 

Most of the collection, of predomi- 
nantly wrought rather than cast iron 
from 1600-1800, was acquired by the 
museum 1860-1930, often through the 
agency of passionate preservationists, 
perhaps the unlikeliest Albert Steptoe 
of all was the pioneering Lady 


Dorothy Nevill, who saw her mission 
as relieving workers' cottages on the 
Weald of their 16th-century decorative 
cast-iron firebacks and presenting 
them to the nation in 1914. 

The museum's mission was, of 
course, to improve modern design and 
manufactures by exhibiting the finest 
examples or the arts of the past and 
present In this sense the V&A itself 
was - and is - an exhibit On show, 
for instance, is one of the rope work 
cast-iron radiator panels with their 
curious hermaphroditic friezes 
designed by Alfred Stevens for the 
museum around 1862. The depart- 
ment’s most recent commission, a 
steel bench by the American artist 
Albert Paley, is due to arrive in late 
October. 

James Hbrrobin’s impressive ham- 
mered gates to tiie gallery of 1981 are 
evidence of the relatively recent flow- 
ering of contemporary blacksmi thing 
in Britain, a phenomenon that makes 
the abysmal design and poor execu- 
tion of the new Queen Elizabeth 
Gates in Hyde Park as bewildering as 
they are a wasted opportunity. Their 
only saving grace is as a reminder 
that decorative ironwork was tradi- 
tionally painted and gilt; black was 
late Victorian convention. 

It is, however, the stark contrast of 
the black, calligraphic lines of 
wrought iron imaginatively set 
against white walls that provides the 
gallery with its immediate drama. Its 
eclectic collections of smaller iron- 
work warrant closer inspection: fiend- 
ishly complex medieval and renais- 
sance locks and keys take their place 
alongside gleaming 16th-century 
Venetian gondola prows, the dull, del- 
icate filigree of Berlin iron jewellery 
and jolly turn-of-the-century biscuit 
tins. 

Black-stained wooden display cases 
are re-used from the old Glass Gal- 
lery, the first of the V&A's “materials 
and techniques” galleries to be redis- 
played. These, plus the gimmick-free 
simplicity of the new installation, are 
virtues bom of necessity. 


Four 
Weddings 
and a poem 

Anthony Curtis on the work of 
the suddenly voguish W.H. Auden 


O nce before, a film 
turned a poem into 
a bestseller. In 1945, 
when John Pud- 
ney's RAF poem “Do not 
despair/For Johnny Head-in- 
Air“ was included by Terence 
Rattigan in his screenplay for 
The Way To the Stars, Pud- 
Bey’s sales shot up from hun- 
dreds to thousands. Now Rich- 
ard Curtis has done it again 
with Auden's “Funeral Blues". 
“Stop all the clocks, cut off the 
telephone ..." in Four Wed- 
dings and .4 Funeral 
Faber have re-printed 
"Funeral Blues" with some 
other Auden favourites in a 
handy pamphlet (£2.50, 32 
pages) that has already sold 
40.000 copies and featured in a 
reader's offer in The Sun, a 
tabloid newspaper not previ- 
ously noted for its commitment 
to poetry. 

Curiously, Auden and Pud- 
ney were at school together, 
pupils at Gresham's Holt in 
Norfolk in the 1920s. Auden a 
couple of years older than Pud- 
ney. had rather a crush on the 
younger boy. When Auden 
threw a batch of his poems 
into the school pond, saying 
that he had abandoned poetry 
for science, it was Pudney who 
helped him fish them out 
At Oxford in 1925, Auden 
read Natural Science before 
switching to English. He pub- 
lished poetry in Oxford jour- 
nals, edited Oxford Poetry with 
Day Lewis and had his first 
homosexual affairs. All the 
while he continued to write 
enormous quantities of poetry 
and he sent copies of them all 
to Pudney, who was still at 
Gresham’s. Auden’s undergrad- 
uate poetic output was stagger- 
ing. No wonder he got a Third 
in his finfllg- 

The Pudney collection is one 
source for Katherine Buck- 
□ell's timely edition of Auden's 
Juvenilia 1922-28 (Faber £25, 
320 pages). Other sources are 
poems preserved by Auden's 
mother, and those given by 
Auden to other friends of his 
youth, among them the painter 
Robert Medley. Christopher 
Isherwood, Tom Driberg. The 
typescripts often show several 
variants of a single poem. Most 
are now safely lodged in the 
Bodleian and other libraries 
but the Isherwood collection, 
the largest, is still in private 
hands. 

There are many lines and 
whole verses that were recy- 
cled into later poems in his 
published work. Dr Bucknell 
(who runs the Auden Society’s 
Newsletter) notes all this in a 
r unning commentary of consid- 
erable fascination. Altogether 
she ban assembled more than 
200 poems written by Auden 
between the ages of 15 and 22. 
Most of them have never been 
published before. A few were 
published by Stephen Spender 
in an edition on a hand press 
bruited to 30 copies as Poems 
(1928). It was Auden's first 
book. Most of the copies have 
disappeared. Dr Bucknell re- 
prints everything that was in 
it 

From the start the young 
Auden was able to assume the 
manner of well-known poets he 
admired with amazing assur- 
ance. We can watch him rest- 
lessly trying on poetic styles 
until he found one that really 
suited him. He goes through a 
Georgian phase based on 
Edward Thomas, Walter de la 


Mare, where the imagery of 
disused mines, kestrels and the 
Midlands rural landscape of his 
childhood, is already obses- 
sively captured. Then be has a 
pessimistic Hardy and Wilfred 
Owen phase that lasts until be 
works his way through to the 
moderns, Edith Sitwell, T.S, 
Eliot. Hopkins. Here is Auden 
at 20 becoming Gerard Manley 
Hopkins in a poem called 
Aware: 

“Bones wrenched, weak 
whimper, lids wrinkled, first 
dazzle known,/ World- wonder 
hardens as bigness, years; 
brings knowledge, you." 

More typical, however, than 
this denseness is a playful 
poem structured like a game or 
Consequences: 

"She said: ‘How tiring the 
lights are!/' I said ‘How noisy it 
is!' So up we scrambled) Into 
the loft which smelt of hay'. 
‘Supper!’ they said, all too 
soon." 

Auden later called this phase 
a process of “literary transfer- 
ence"; by assiduously copying 
the style of a master the nov- 
ice-poet discovers his own 
voice. Certainly by the end of 
the volume Auden has done 



that There is a sequence called 
The Megalopsych (Aristotle’s 
Great-minded man) that shows 
him maturing almost over- 
night. As Bucknell says, as 
soon he had finished it Auden 
began to iron out its pomposi- 
ties and simplify. That simplic- 
ity was second nature to him 
by the time he came to write 
"Funeral Blues”. 

In its 30 pages, Faber’s new 
slim volume amply reveals 
Auden's power to haunt us 
with memorable lines, also his 
stunning versatility: it has a 
ballad, “O what is that sound 
that fills the ear"; a calypso 
“Driver drive faster”: a lullaby 
"Lay your sleeping head my 
love”; an exhortation “Lover 
sulk no more" (for Britten); a 
couple or Cowar dy cabaret 
songs, and a clutch of love-lyr- 
ics in which complex metrical 
problems are solved. 

For those who wish to read 
“Funeral Blues” in the context 
off Auden's entire poetic out- 
put, the Collected Poems (edited 
by Edward Mendelson Faber & 
Faber £3.439, 928' pages) con- 
tains “all the poems that WiL 
Auden wished to preserve”. He 
did not, however, wish to pre- 
serve the juvenilia but, as an 
insight into the development of 
a great poet who has become 
unexpectedly voguish, we are 
grateful to Dr Bucknell for the 
trouble she has taken to let us 
have them. 


T he new Glynde- 
honrne has only been 
open seven weeks but 
it is proving a much 
more exciting place than its 
sedate predecessor. The booing 
that greeted Deborah Warner’s 
abstract version of Don 
Gfouartm on Sunday was not 
unprecedented - Peter Seller's 
equally revisionist Magic Flute 
was heartily disliked by tradi- 
tionalists (most of the 
Glyndebonrne audience) a few 
years back - but this time the 
barracking was more confi- 
dent and showed a welcome 
tendency to start fresh 
traditions in the new audito- 
rium. 

More startling still have 
been the advertisements alert- 


ART GALLERIES 


lUaroOfWOGHnNEAPTeAftofriortea 

WL Uri-ttB Sl«. R.B. WTAJ ■ 
pfctunr Una 20 August Mm-Fri 1 0-5 JO. 
Sa 10-1230 


J-P.L. FINE ARTS RAOUL DUFV - 
TiWniy Mujfc..." PahOfigs. Wnfcreoltefl 
ana Drawings. Umd 22nd Mon - Fil 
10-S 30 26 Davw* SHOW. London Wl. 
(OH-WS 26300?! £21 S7B8} 


Off the Wall/ Antony Thorncroft 

Surprising last refuge for the avant 


ing the public to unsold tick- 
ets this season. It has always 
been true that a ticket to 
Glyndebourne was almost 
impossible to come by, even 
from touts. There are over 
6,000 opera lovers waiting (at 
a signing on fee of £50) many 
years for the membership 
which guarantees tickets: 
most regard a trip to Glynde- 
bonrne with as much longing 

as the three sisters dreamed of 

Moscow. 

Now the Sussex Downs are 
suddenly much closer. The 
enlarged auditorium means 
that there are around 400 
extra tickets to sell each even- 
ing and for the August perfor- 
mances of Peter Crimes and 
The Bake's Prepress (20th cen- 
tury opera is blatantly less 
popular with the social ele- 
ment in the Glyndebonrne 
audience) there is still avail- 
ability- Hence the ads. There 
has also been confusion about 
the 42 standing places priced 
at £10 and £15 for each perfor- 
mance. They can be booked hi 


advance. So if you are quick 
you can go to Glyndeboorne 
this summer for a tenner. 

Next summer it should be 
open house for everyone. The 
programme consists of new 

productions of a rare Handel 
oratorio and Berg's tutu, not 
obvious box office hits, pip 
revivals of Britten's A Mid* 
summer Night's Dream, which 
failed to sell out completely 
last time - and Dm Giovanni 
As the ENO rejects experimen- 
tal ism for popular operatic 
favourites Glyndebonrne 
seems to be the surprising last 
refuge of the avant-garde. 

S ponsors love a credit, a 
little plug in the press 
for the opera, concert, 
art show, they have 
supported. This is mainly 
because only a minority of 
company directors appreciate 
the arts, and media coverage 
is the obvious way that they 
can prove to their more 
hard-headed colleagues that 
there is a tangible return 


from the corporate invest- 
ment. 

In the past such credits were 
hit and miss affairs, with the 
BBC and srane rwBnMi news- 
papers refusing to acknowl- 
edge the sponsors’ contribu- 
tion. As a result, the arts lost 
patrons. In recent mouths the 
Association for Business Spon- 
sorship of the Arts, and arts 
organisations like the 
National Theatre and the Tate, 
have launebed a strenuous 
campaign to persuade the 
media to include the sponsor 
In coverage of arts events. 

It seems to be laying off. In 
a survey conducted in May, 74 
per emit of sponsors were cred- 
ited, compared with only 49 
per cent in February. Six 
newspapers had a 100 per cent 
success rate, htrindfrng the FT 
(of course), but alto such tradi- 
tional sceptics as the Guardian 
(now an ABSA member) and 
the Evening Standard. 

The research also indicated 
that sponsorship is still com- 
paratively rare. Only 39, or 22 


per cent of the 180 reviews 
were of events that had been 
sponsored. 

T here is only one topic 
of conversation in 
the arts and heritage 
world at the moment 
- the National Lottery. It 
would be a dozy arts adminis- 
trator, or museum director, 
who did not want to jump oo 
this particular gravy train. 
The problem is which compart- 
ment to make for - the Milieu, 
nitrm Fund, the arts treasure 
chest, or the heritage pay outs. 

The Millennium Fund is 
channelling half its antici- 
pated revenue, or roughly 
£800m by the year 2000, into 
large prestigious new building 
projects of national signifi- 
cance, which puts It off-limits 
to art galleries and theatres 
that only need refurbishment 
The arts money is likely to be 
competed for by every arts 
Institution in the country, 
from the National Theatre to a 
local video workshop. This 


leaves the National Heritage 
Fund's largesse as the centre 
of most speculation. 

One gallery that has moved 
swiftly is Dulwich Picture Gal- 
lery in south London. This 
week the chairman of its trust- 
ees, Lord Sainsbury, launched 
an endowment appeal which 
aims to provide £400,000 a 
year to improve both the dis- 
play of the collection and the 
out-reach programme of this, 
the oldest public art galkry in 
the UK To ensure such extra 
income suggests an endow- 
ment fund approaching £8m. 

Dulwich has pulled off a 
coup by receiving a promise of 
help from the National Heri- 
tage Fond, although, surpris- 
ingly. not from Its lottery 
resources hut from its annual 
grant, which is to be reduced 
next year to £8.8m. This is 
because the Heritage Lottery 
Fund can only give endow- 
ment support to projects to 
which it has also given capital 
funding, a strange quirk of the 
legislation. 


-garde 

Of course help for Dulwich 
depends on the Trustees rais- 
ing a substantial sum by then- 
own efforts, but with Lord 
Sainsbury and Mrs Vivien Drif- 
field on board the omens are 
good that this little artistic 
jewel should gleam even more 
brightly in future. 

E very now and then 
you catch sight of the 
extent of the reces- 
sion in tiie art mar- 
ket, or rather in the picture 
market, where things are 
toughest hi July 1990 a bidder 
quickly acquired on the same 
day at Sotheby’s some 18th 


century ancestors by paying 
£820,000 for a family portrait 
by Zoffany; £380,000 for one by 
Joseph Wright of Derby; and 
£68,000 for a Gainsborough. 
Fate forced him to sell them at 
Christie’s this week. The 
Gainsborough sold - for 
£45£00, but even at £220,000 
there was no bidding on the 
Zoffany and the Wright of 
Derby was bought in at 
£180,000. The market for 
smart decorators' paintings is 
Still stone-cold dead. 

By chance this week an aris- 
tocrat was actually buying in 
the saleroom. The Duke of 
Devonshire, through his Chat- 
Sworth Trust, paid £265,500 at 
Sotheby’s tor a Gainsborough 
portrait of Georgina, an 18th 
century Devonshire Duchess. 
In 1876 it sold for 10,000 guin- 
eas, at the time the highest 
Stun ever paid in the saleroom. 
How tastes change. 


BANKSIDE GALLERY; RWS "OPEN" COMPETITION 

7tb ■ 3IS July. Tbe largest UJt Watercolour Open Exhibition. 

MoM woria for sale, prices from £220. 

Artist touts Tubs &3Qpo ai ibe gallery. 

Open: Toes 10 -8, Weds - Fri 10 -5, Sun I -5. 

OoBed Mw & Sat Adm H5Q<£2 ooig s . 

f§§ BANKSIDE GALLERY^ 

48 Hoplon Street. Blodrfriars, London 5E1. 071-928-7521 



FINANCIAL TIMES WEliKKNP JULY 16/JULY 17 1994 


ARTS 


From figures 
to dragons, 
suns, moons 
and laughter 

William Packer admires an exhibition of 
Maggi Hatnb ling’s recent work 


A s she approaches 50, 
Maggi Hambiing 
remains as unpredict- 
able and unclassillable 
as she is prolific. Mot 
only does she never seem to stop 
unless tied down, her paints confis- 
cated and studio locked, but wbat she 
does is likely to surprise and test even 
the most committed of her supporters. 
Portraits, life drawings, landscapes, 
mystical abstractions upon landscape, 
symbolist or mystical abstraction - 
all have appeared in their turn, over 
the past dozen years or so, and not as 
single spies at that, but in battalions. 

She is something of a surrealist, 
and an expressionist within the broad 
meaning of the act - though for say- 
ing as much 1 was once pinned 
against the wall by the late and 
redoubtable Vera Russell, who said to 
me darkly as she shook me by the 
throat: “Maggi is not an Expression- 
ist: Expressionists are German." Even 
she, I feel, had she seen this latest 
work, would now concede the point 
Towards Laughter, her show at the 
Barbican, offers us a just such a view 
of the paintings of the last ten years, 
with a handful of earlier works to set 
the thread. It is not a straightforward 
retrospective, but more a retrospec- 
tive of an idea, and its development 
within the work. 

Miss Hambiing. in her portraiture 
and figure painting, has always been 
interested in physical expression, 
passing moods and states of mind. 
The show opens with one or two 
examples - a portrait, from the mid- 
1970s, of Lett Haines, her sometime 
teacher, roaring with laughter and 
profoundly convincing in its psycho- 
logical subtlety; and another laughing 
and this time female head from 1984, 
which is more robustly stated. 

But rather closer to the particular 
idea, as we see it develop through the 
show, are two much stranger images. 
The first is of the ghost of another of 
her great teacher-friends, the artist 
Cedric Morris, a wispy and transpar- 
ent ectoplasmic figure in his chair 


against the light. The second, “In 
Praise of Smoking”, is a conversation 
piece in the extended series of paint- 
ings she made of her friend, the come- 
dian Max Wall, in the early 1980s. It 
shows the two of them in the studio, 
one posing, the other painting, with 
the smoke from their cigarettes rising 
to come together in a cloud above 
their heads, a cloud personified in the 
head of ghostly monkey. 

The jump from this to the first of 
the sunrise paintings, which marks 
the transition from overtly figurative 
painting to the abstraction that 
makes up by far the greater part of 
the show. Is thus not so great as It 
might at first appear. The key worts is 
the Dragon Sunrise of 1366, a burst of 
orange against the blue out of a black 
cloud that immediately calls to mind 
the Zen temple ceiling paintings of 
Japan. Soon the moon appears, to do 
battle with the sun - reflected 
images, ambiguous surfaces, sugges- 
tions of pools and water, or dragons 
and demons Phasing the richly dark- 
ening sky. These are increasingly 
ambitious and dangerous paintings, 
in terms both of scale and content, 
and it is a measure of the artist's skill 
that she carries them off so often, and 
so beautifully, in this phase of the 
work. 

And suddenly, with the 1990s, the 
laughs take over, great bursts and 
belly laughs of pigment, pools of col- 
our, swirling and rioting together. 
They begin quite soberly with “The 
Happy Dead”, another symbolic and 
abstracted sky, and so, happiness to 
laughter, the thought of the physical, 
visible presence and description of 
mood and sound, the intangible and 
the evanescent, is born. 

These are now high risk ideas and 
images, the danger ever-present of 
ludicrous, bathetic failure and belly 
flop, and it la a measure of Mias 
Rambling's nerve that she has per- 
sisted with them with such spirit and. 
In the event, to such effect Here they 
are: “Brothel Laugh", all puce, pink 
and voluptuous with hints of buttocks 



and black stockings; “Suicide Laugh”, 
desperate, defiant and vertiginous, 
light on dark and into the void; “Bath- 
room Laugh", swirling, supine forms, 
pink against blue; “Laugh Defying 
Death", legs kicked in the air; “Cham- 
pagne Laugh", yellow froth and glass 
held high; “Secret Laugh", off to the 
side and turning away; “Ghosts of 
Laughs”, fading into silence. 


Lately Miss Hambiing has also 
made some ceramic sculpture, linear, 
spindly, precariously curling and col- 
ourful objects that are, in sort, cous- 
ins to her painted images. Like them 
they are suggestive and evocative 
things that invite sympathetic recog- 
nition and fellow feeling. But then the 
shared joke is no mere laughing mat- 
ter. but a privilege too. We laugh or 


die. Maggi Hambiing laughs a lot, and 
this is a brave show. 


Maggi Hambiing - Towards Laughter, 
the Concourse Gallery. Level 5, the 
Barbican EC2, until July 31, then on 
to Preston. Sponsored by Northern 
Centre for Contemporary Art and 
Northern Electric, funded by the Arts 
Council. 



Stephan Dahlberg - more than adequate as the swooning Oriando 


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Ideal opera for Drottningholm 

John Allison reviews Haydn’s ‘Orlando paladino’ 


T he abundant plea- 
sures of visiting the 
Drottningholm Court 
Theatre - 50 minutes 
from Stockholm by lake 
steamer - have been recounted 
on this page before. But the 
single most satisfying experi- 
ence there is of course a good 
opera production, and Haydn’s 
Orlando paladino, the main 
project this year - the second 
season under Elisabeth SfWer- 
strOm’s artistic direction and 
the chief conductorship of 
Nicholas McGegan - is very 
fine indeed. 

One of Sflderstrom’s aims is 
to explore the operatic geneal- 
ogy of the Mozart and Gluck 
works that have been central 
to Drottningholm’s repertory 
over the years. Orlando pala- 
dino was Haydn’s most popular 
opera, and it is likely that Moz- 
art heard it; certainly, there 
are pre-echoes of Don Giovanni 
in the characterisation of 
Medoro (a Don Ottavio figure) 
and Pasquale, whose cata- 
logued grievances call to mind 
LeporeUo. Though the plot can- 
not stand dramatic scrutiny. It 
serves as a framework for mar- 
vellous music, much of it wor- 
thy of Mozart’s operas. 


Orlando paladino is ideally 
suited to Drottningholm’s 1766 
jewel-box of a theatre. It was 
composed (1782) for a court 
theatre of about the same size 
and period - that at Eszter- 
hfiza, long since destroyed - 
which like Drottningholm was 
on the fringe of European cul- 
ture but flourished under 
enlightened patronage. The 
libretto, stitched together from 
Ariosto's heroic legends, calls 
for all of Drottningholm’s' 
famous stage effects: the thun- 
der- and wave-machines work 
their magic, Alcina descends 
sitting on a cloud, Orlando 
decapitates one statue and is 
himself transformed into 
another. Drottningholm’s deep 
stage provides the dark 
recesses for Alcina's magic 
grotto. As If in a time capsule, 
the original 18th-century stage 
machinery is still in place: 


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Neat one, Martin. 



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scene changes are accom- 
plished within a matter of sec- 
onds, dissolving with breath- 
taking beauty. 

Ivo Cramer’s production, in 
Dominique Delouche’s lavish 
costumes, catches the opera’s 
naive blend of comedy, . 
romance and heroism. Cramdr. 
a choreographer or long experi- 
ence, provides lively spectacle 
(Alcina’s monsters were taken 
by dancers) that almost dis- 
guises the work’s lack or stage 
sense. 

’ Drottningholm’s cast was 
strong, with two especially 
good sopranos. Elisabeth Berg 
was bright and bell-like as the 
shepherdess Eurilla, and Pia- 
Marie Nilsson sang with 
almost perfect poise as the lan- 
guishing Angelica. The tenor 
Idas Hedlund stood out for his 


expressively comic Pasquale 
and skilful palter singing. Gun- 
nar Lundberg blustered power- 
fully as the swashbukcLLog but 
ineffectual king of Barbary, 
Rodomonte; Anita Soldh char- 
acterised the benign sorceress 
Alcina well; Stefan Dahlberg 
was more than adequate as the 
ridiculous, swooning Orlando; 
but Lars Magnusson’s Medoro 
was too loud and unyielding. 

Haydn's score sparkled 
under McGegan’s energetic 
direction, but it never seemed 
pushed. McGegan caught the 
music's essential lyricism, and 
the "period” instruments - 
beautiful winds - sounded 
smooth in the theatre's inti- 
mate acoustics. 


The Festival runs until Sep- 
tember 9. 



Video 

Into the 



2 1 st century 


I have seen the future and 
1 have almost got It to 
work. My life has been 
transformed In recent 
weeks by the acquisition of 
a CD! Digital Video machine. 

Welcome to the wonderful 
world of advanced interactive 
home viewing. Technophobic 
teething troubles mean that 
I am still striving to master 
the intriguing game Caesar’s 
World Of Boxing, in which you 
programme your own pugilist 
and watch him battle in 
glorious live-action colour. 

And l am also settling slowly 
Into the other game requiring 
use of a remote-control 
joystick. Voyeur. In this yon 
roam around a US presidential 
contender’s mansion 
eavesdropping on possible 
would-be murderers. A 
computer-enhanced Robert 
Culp plays the politico, and 
a flotilla of seml-recognlsable 
TV actors occupy the guest 
rooms. Using your handset, 
you zoom in and out picking 
up clues, highlighting 
evidence, or punching np your 
choice of tell-tale dialogue 
scenes. 

My mastery of this games 
universe is limited as yet 
But Z have screened the CDi 
feature films without problem 
and I can announce: you might 
as well throw out that 
steam-driven VCR now. This 
system comes closer than any 
previous small-screen viewing 
experience to providing the 
resolution, hi-fi colours 
and sound quality of a 

cinema. 

So far the Philips CDi people 
seem to have tied up 
Paramount and Polygram 
alone as major product 
sources, so the movie 
catalogue Is small. Top Gun. 
Naked Gun 2%. Ghost, The 
Crying Game and a couple of 
dozen more. 

But for the first few days 
of using this machine, what 
you watch hardly matters. You 
are startled that faces look 
real and humanly coloured 
rather than blobbed in with 
video-pink: that night time 
scenes are not invisible to all 
but badgers; that grain and 
blurriness are things of the 
past 

A favourite movie scene that 
on the VCR looked scarcely 
better than a home video - 
let as say, Frank Drebin’s 
lobster-terrorised White 
House dinner with the Bushes 
in Naked Gun 2*A - now plays 
tike something out of 
Visconti. 

Since this machine has been 
handed to me on Indefinite 
loan by the Philips CDi 
promotion people fits high 
street cost is £550), I should 
probably moderate my 
enthusiasm lest there are cries 
of bribery and corruption. 1 
also hesitate, as a film critic, 
to trumpet a viewing device 
that might encourage even 


more of you to stay away fro® 
cinemas. 

But a breakthrough Is a 
breakthrough. And with movie 
CDs as with music CDs - to 
which they are near-identical 
in size, shape and price (Lis 
per film) - you have 
unprecedented intervention 
powers. Scenes are 
‘‘chapter-headed” so that you 
can jump straight to them. 

There is a freeze button. 

producing a perfect image not 

an imitation uf a distressed 
blancmange. And when you ’ - 
press the final stop button, 
that is it: you do not have to 
look at the celling for five 
minutes while the tape 
rewinds. 

With my credibility as a 
cassette- recommenrfer coder 
threat, 1 must now turn 180 
degrees and argue tor such 
virtues as VCR viewing still . 
has. The main one is range. 

There is movie tile outside 
Paramount, and in the foreign v - - ” 
film department July offers 
riches aplenty. Pick of the 
month Is Farewell Mg 
Concubine (Artificial Eye), 

Chen Kaige’s epic of modern 
Chinese history, escorting us 


Nigel Andrews 
has fun playing 
with a new toy 


hrough 50 sumptuously 
framatised years from 1920 
a the Cultural Revolution. 

Other sensory feasts have 
node the journey from large 
icreen to small. Juno Rand's 
Pampopo (Electric) is a 
Japanese comedy about food,:: 
ex and Buddhism. ' . H 
frssblnder’s Effi Driest 
Connoisseur) is a hieratioUy 
landsorae version of the 
Jassic German novel. And 
m a new video label called 
‘Dangerous To Know” you - 
night try Hamlet and A 
Midsummer Night’s Dream: ' 
wo kitsch-rich Shakespeare . 
idaptattons by Anglo-Itattm * 
li rector Celestino Coronado. • 


Jarman. 

But it is no good. I cannot 
stay away from the CDL I an 

now playing an interactive > 

disc called The Worlds Of. 

which features several pop 

groups l have never heard of * 

called "Saltans of Ping”, 

“Ugly” and the tike. 

Coaxing my handset’s 
mushroom-shaped control 
button , I dodge about between 
groups and between songs. 

I can also answer quizzes, 
choose bits of interview and , 
even play a hide-and-seek 
game with the “Sultans” mi - 
the Tokyo subway. Amazing. 

1 was only just getting used • 
to the 20th century, and now 
here is the 21st 


The Official London Theatre Guide 


AOEUHLSl wl.Ttl MTIMMII* J 

Swuci Boulevard 

lagftojggcgra wgvusgut nmvtMHw 

ALBERT. S« Mutin', Urn* 1rieTU».l7ML 

Lady Windermere's Fan 
nawtatoMcjquji* wimowi 

AU7WYCH. AUh W STUMuMM. 

An Inspector Calls 
IMwCBWWCwSm Pnot«*73IKZ» TUMfcQOW 
am bass ADos&wni S*.TM enaaati iinm. 
The Cryptogram 

PirtrecCLSBCNJa IWWO] 
APOUO VICTORIA. 17. B.1, llcHCTL*UAO«2- 

Slarlight Express 

TnhrVkMrU. mcreUfrOI .TOlAmHOS 

COUMUMtfl iMr. TW 071 «IU 1(1. 

Eaelbh MiIUhuI BjiWI: LA ■AYADbMJM.N. 
TttfcjnBvrnnMS July 
THBSLien NG BEAUTY | a |y 270* 
]UW.UKqgrSyair.Prfa«Ki:«.Cg HBPaOWM 
COMEDlFuilasSl. HI Bn AM. IMS. 

The Miracle Worker 

IbacPyaAiUQT Cbm Pita*. TOP^O^IO 

carrBXK>NHVudiuycu«u. wmnuM. 
The Flying Karamazov Brothers 

la !"***• Hyrf* UniU pi ember i 
1M>elVoaiBvCaelWB!e»JO<iaJ4l mgWH 
DOMINION, TMiwhmCaartU TM 071.1 tt-MHL 

Crease No*, busking ru*ap.-n 

MtCjwLunqiiJ FH.eg£rAM3 TODbCOTt 
DONMAaKAKSHOUS«Lurth<nSt.tcW7iaM.n«a 
CleaganyClen Ross ciuUAugzr 
miwcuraiaiitmcauim TBsyogni 
DBURVLANE.k'jlhciiiKMKCi THHrri^mjWXU. 
Miss Saigon 

nibcCaraiKiinfcj Fiiten.tSM.cai TOOs«»»l4 
DUCHESS. CjilwiliKSliect 1,1071 4HNK 
Don't Dress For Dinner 
ftbcCiwffilUinkn. rnu& PKM3» TOUAWIS 

PUKB or VOUCH, M Mum *Ll TWimjOSJU2 

The Rocky Horror Show uwwIinm 

IMCT.eTSQCBJO WMOWIt 

KHtruNtRiLuriisi fctmaiMVS- 

The Woman in Black 

Mr Cuwiu ea,. i*rw.r» uunnsM TOI6 aw? 

GUUH<KciuHagCiaMil&iM0ri.m5OS& 

The Canterbury Tales 
mechanic ■»* IVWAWIW-LIV5U Tm» 

CLOSE. stu(l»a>.in An 
An Absolute Turkey 
ntbrrtnjjq^:iiaa. w«. tL 7M3 TUmaWir 

H A VM ABKBt; I U, ouiVui Ttl 07L«1U«M. 

Arcadia 

TrteiftWjJlllyCUw lUcTKCtCLi TOOt.WW 

KU eTaiESTVS, I L»Rwrlun. MU7LMLS0M. 

The riuntom of the Opera 
TubnlVmJiUrCIvu.. l’riw».L 1 M3U 1WMOOH1 

LONDON MLLAUIU«.rt(*yllSI tipMtm 

iri urn.mjo2J.i Fiddler on the Rodf 
Tut* l‘r*n.i?3u. i 2?la Wrl. ttgOjl 

LONDON PALLADIUM, AifiyllSi 
rrtir7MM40HLlO(iVerI FumNavunDn IS 
Tiibr Q uart M Trun LIU LN 

LWCMunnlwiyAtv TtllO7l.m.S0UI. 

Five Guys Named Moe 
IhlNtVeMmyLMiraLl'rtmiJ^JglWJs.'WU 

NrtrioNALrHEArK*i^iiia«iL x»fcm.«sasi 

OMnri-TIIC SEACULUIUHNN VON ASM t 

Crkwia W-U-JJWVUM’Jn 

Lrovhini SkOKENOLASS 

fti,n lA46-i21 

Cunnlw UCID 

rnrs.LHIW.LIIJ0 TUU> 00*50 TuW Wiirrlua 

NEtVLONDON.tWryLiM IrM7L4AM7sI 

Cals 

Tub#, HuP-np. rtkf%Clt»M O) fnumwt 

rNEOUmC.K'uintaiSJ H07L*a.r»l», 

WQQneoaU 

T*brlMil*Hoa tn<n tT'ut-CHK DWnW» 


OTCN AIR. RegttSa Pe*. W WUMMH. 

Nrw WMlneiM'CMnuar 7 
THE CARD 

SALACKShiOoeMnA-cmM WCLOUW 

LeiMiHRUn ___ 

Tulm fthwlT-tM TBSM-AW; 

n<oBNix:c»uN>gOmiMrtj ruMumm -* . 

Blood Brothers . 

Tube TMruhtaCL IU rrias&»anv****?b . 

MINCE CDMRD. OUOxnpanSL W07L3HJJH ' 

Crazy For You ^ J ' 1 ' 

law.LNoaia.ikl.Prtuw.aiSIkCW rawing 1 -., 

«UNCSO*WALES.Cov»*lryM. SHOTLEMW- 

Copacabana 

T^PK*<baya^rr^ix<x . 

OUEKNVStuhntnnAv* MWUWW 

Hot Shoe Shuffle- n» NxvUtH*#* 

TUrt.rKt.CUr MgUMWg TM*.** *: i; 
MnALCOUVTT.ShMM-S^HB. W*7L»3S«S 
The Queen and I/Road 

fttoKts-m igag g 

gXTVAlXJVEgA»WUSEr^>reolCJn.WSnJ*fclN' 

Dm Royel Bailee DON QUIAOTS , 

TOMSSAUX _ * 


y -. 


ROr»ALSHAKB»*ARSOOt.Dertieit». 1 W07L*»En 

RtiHnuKINC LIAR 
TURMERCHANTO* VENICE 
THE TEMPEST 

nRBUrm 

TEc He MURDCR IN TMt CATHEDRAL 

GHOSTS 
noeouNTOnifs 

TnbgRuWftUi Prirratrt T0Bja*WS7 ^ — 
SADLER'S WELLS. IEmNwtAV* ■METUIM** 

uiuKiuiy)i Barbara Cook 

Tabe-AnReL PtfcertCiaaS . 

8T MARTITrS. WkM sum. Td WUM.1ML 

tin Mousetrap 

tube- LrtcCTtttSqn»K r»to».«4M IW PRtgS 
SAVOY Sward TelBTL U aJ M E 

She Loves Me lWW i . 

TBfcgUuiunCpr* PAterUa-OQ HW j” 

STRAND, AU«yvi> TUm-HRaWL 

TuliSkiNeeL'Bg.ffrKqiff-tW _ EWjjSi: r 

V»UDEYlLU.SINnJ 'WOTLUfcW. 

wwesgMaig HiSK 
VICTOR] A PALACE VKM uSn-* NWM , *“ r 

igaaraasg" 

WIimniAIA WMNRalL WWI-M*-' 7 **' 

Ig g 

^ mujM, 
Tate Lrarowiie PHtru-uaJil 


I'fonu'oiimhvsmfmrkrtGru.. - — -- 

feKfRHIcreJCharUy — 

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T-CallitaOWhThiulKllne«w^^ n ^ . - 

guidcformorelflfunnjrtluBanddaliY 

nmnlnUK, .. cn irii.' 

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Hilo 

SI c . 


JULY 16/JULY 17 1994 


WEEKEND FT 


TELEVISION 


CHESS 


l] tiii 




1A * *» » a-™ 

J* FMstanw. 485 Rorad the Ttetot 840 Prate! 
t(L5a Hire Peter Lundy and the 

Mfidldne Hat Staffion. Western 
adventure. A frontier teenager (Leif 
Gary) beotunea a Pony 

19th century Nebraska (TVM 

13-28 WAafinr. 

tzso Grandstand. Introduced by Steve 

Rhtorkwn Tumberry. 12^5 GoK and 

Footbal Focus: The Open Gotf 
Championsrtp. Coverage of the third 

round at tee windswept AyraNra 
courae - Pke, Foottjafl Focus Rty- 

vhw ot the WorkJ Cup tfwWace 

frwt 1W News. 1.05 Golf. ij» 
Raang from Newbury: The 1 JO 
Mtoto Donfngton Castle Corafrttons 
States. 1 35 Gott 1 .55 Ractng: The 
2.00 Hareroa Timber end Buflcfing 
SuppSes Stayers Champkxjshto 
Settee Handicap (Qualifier). 2.05 
Gotf. 235 Racing: The 230 Weativ 
Brtjys Super Sprint Trophy. 235 
Golf. Times may wy. 

B.OG News. 

*■« Regional News and Sport 
&20 Hit the Road. Tom captains Jona- 
than Coleman, Annabel GOes and 
John Leslie tape celebrities Jim 

Bowen. Keith Chogvdn, Jeremy Gus- 
cott. Allan Lamb. Vkdd Michelle and 
Card SmtHa to perform bizarre 
tasks In Stratford and Warwick. 

0-00 Stay Tooned. Tony Robinson pres- 
ents a history of The Rntetones, in 
preparation for the release of the 
movie starring John Goodman. 

0w4O Pats Win Prizes. Ordinary house- 
hold pets compete In all manner of 
wacky events In an attempt to wm 
prizes for thetr owners. 

7 -SO Mbs Marpbc Nemesis. Joan Hick- 
son. In the girfse of super-ateuth 
Mbs Marple. is hired by a millionaire 
to investigate an indlvutgad crime. 
Feature-tength mystery, with Halerta 
MitchetL 

0-0® One Foot In Iho Gram. Al manner 
of disasters ensue when Victor 
seeks professional help for an over- 
grown chary tree. Classic comedy, 
starring Richard WSbotl 
9-36 News and Sport; Weather. 

9JSS Fibre Rrefox. Rated US pBot Cflnt 
Eastwood is persuaded to steal a 
supersonic jet fighter from the 
USSR. Airborne action ttvflter, with 
Fredde Jones and Warren Clarice 
(1982). 

12-05 Gloria Estefan: Into the Light 
World Tour. 

1.05 Weather. 

1.10 Close. 


730 DDy the Dinosaur. 7X King Qmerttogere. 
7A0 Piaydqs. 400 TaSng Trtaa. 415 Bi tatai 
eflh Float. 415 FaWi to Faith. 030 This b Ow Day 
In the Wodd of PoMce. HLOO See Haari 1030 The 
rtgh ChapmaL 

12.00 CountryfBe. 

12-25 Weather for the Week Ahead; 
News. 

12-35 Harry and the Hendersons. 

1255 Cartoon. 

1-05 Steven SpMberg’s Amazfcrg Sto- 
ries. 

1.30 Ba stBidere. .. 

250 Rkn: The Four Musketeers. The 
heroes engage In another bathe 
against the vSaferous Rochefort and 
his accomploe M3ady de Winter. 
High-spirited swashbuckler, with O0- 
ver Reed. Michael York and Chariton 
Heston (1974). 

4-35 Cartoon. 

440 Lifeline. Appeal on behalf of the 
Women Caring Trust, set up to hefo 
chfldrenln Northern Ireland 

450 Jmf Hx It. Jimmy Savfle arranges 
for an 11 -year-old from Northumber- 
land to go on a dinner date with 
Michael Warner, and a Merseyside 
coach (fever to take the rains of a 
stagecoach. 

5^5 S w e e t tephdoa. Actor Joss Ack- 
land te&s Alan Titchmarsh about 
dramatic moments m his Ife. includ- 
ing a mystical experience in Africa. 

400 News. 

5.15 The Three Tenors in Concert 1994. 
Jose Carreras, Ptaddo Domingo and 
Luciano Pavarotti combine their 
singing talents in a gala musical pre- 
lude to the World Cup Final, featur- 
ing a selection of popular operatic 
arias and Broadway hits. 

8.15 World Cup Grandstand. Full cover- 
age from the Rose Bowl, Pasadena, 
as the 15th World Cup final kicks off 
in the noonday heat of Los Angles. 
After a footballing month never short 
on incident, drama and the unex- 
pected even the hardened team of 
BBC pundits w9 be hard-pressed in 
predicting the winners of what has 
proved to be one of the most 
enthralling tourna m ent s far years. 

1458 News and Weather. 

1050 Heart of the Matter. Joan Bskewefl 
asks H sex education should be 
taught to young children at school, 
and whether It has a beneficial or 
detrimental effect on their behaviour. 
11-25 F*m: The Day of the Triffkfe. SF 

adventure about desperate efforts to 
prevent a race of sami-Intelligent 
plants taking over the Earth. Howard 
Keel and Janette Scott star (1962L 

1.00 Weather. 

150 done. 


415 Open University. 210 JurVpor Junta 425 
Spnveto. 440 RnvWs American Tate. 1005 The 
Route Wld Guido to Britain. 1050 Gnnge H4 
1455 Teenage MUant Hero Turtles. 11 JO White 
Feng. 1145 The O Zone. 1200 Around VMMh 


1250 Sunday Grandstand introduced by 
Steve Rider from Tianbeny. 1255 
Golf and Footbafl Focus: The Open. 
Coverage of the final round of tte 
123rd championship. Plus. Footbefl 
Focus: World Cup *94. A look ahead 
to tonight's final. 1.00 God 650 
News Rotndup fanes may vary. 
Subsequent prog ramm es may rui 
lata. 

440 Rough Guide to the Americas. 
Magenta de Vme and Rajan Deter 
visit Canada, where they see the 
sprits in Toronto and Montreal. 

750 Galapagos: Paafee In Parfl. The 
ffuth behind recent media coverage 
of devastating ffras sweeping the 
Gafapagos islands, home to the 
famous giant tortoises. 

8.15 FSnc Stanley and fata. BB terate cook 
Robert Oe Niro starts taking rearing 
lessons from lonely widow Jane 
Fonda - and soon finds his thirst tar 
knowledge replaced by feeSngs of a 
more int s t M te native. Martin Rib's 
moving romanti c tkama. with Swoo- 
s»e Ktatz and Martha Plimpton 
(1989). 

258 The Jqttar CoBskxi. An investiga- 
tion into the origins of comets. 

1050 Under the Sun. Insight Into the 

unusual sexual rituals practised by 
the Sambia people of Papua New 
Guinea as a means of passing on 
warBo qualities from one generation 
to the next These secret practices 
have aH but died out in recent years, 
but as a result of a ctosa relation- 
ship between anthropologist Gibert 
Herdt and the natives, they are at 
last revealed to the outside world. 

1050 GoK The Open. Steve Rider 

introduces final-round WghBghts 
from Tumberry. 

1150 M o vie d romo. Introduction to 
tonight's ffim. With Alex Cox. • 

1155 Fine Camy. Jodie Foster stars as a 
free spirit who tr a nsf o rms the fives 
of two sideshow carnival performers. 
Offbeat drama, with Gary Busey and 
Robbie Robertson (1980). 

155 done. 


SATURDAY 


eeOQpan UrtewaNy. 

1215 FSrre The Roaring Twenties. 

Classic gangster drama about a first 
world war veteran {James Cegney) 
who embarks on a We of crime after 
returning to Prohit>ttion-ora New 
York. With Humphrey Bogart (1939). 

250 Appaloosa. Insight into Linda and 
Pail McCartney's love for their thor- 
oughbred horses, providing a unique 
perspective on the world of eques- 
trian breeding and competition. 

250 Scrutiny. Anne Parians reviews the 
work of the parfementay commit- 
tees. 

200 Fftit Carve Her Name with Pride. 
The British widow of a French officer 
is enEsted as a spy during the seo- 
ond world war. Fact-based drama, 
staring Vkgfrta McKenna and Pauf 
Scofield (1958). 

455 GoK The Open. The dosing stages 
of the third round from Tisnbeny. 
With most of the players beck in the 
clubhouse, there's a chanos lor 
those stS to complete their rounds 
to move qp the leaderboanl Subse- 
quent programmes may ran fete. 

755 News and Sport; Weather. 

750 The Eye of Vichy. Claude ChafaroTs 
powerful fibn recounting the contro- 
veralal htetory of the wartime French 
Vichy regime, which actively sup- 
ported the Nazis' artFearrsfre pofr- 
cies.{Engfiah 8ubtfttes). 

255 Seinfeld. George is dsfighted when 
Bahia finds Mm a job, end gwee her 
a sweeter as a thank-you gift - only 
to face humBa&on when she teems 
he bought it at a bargain price. 

250 The Jupiter CoOMon. New series. 
First In a week of programmes cov- 
ering one of the rarest galactic phe- 
nomena ever witnessed by mankind 
- the impact of a comet onto the 
surface of the largest (tenet in the 
solar system. 

1050 Golf: The Open. Steve Rider 

Introduces third-round higMghts 
from Tumberry. 

1050 FBm: Lacombe, Lucian. Louis 

Matte’s drama about a French peas- 
ant who becomes a Nazi collabora- 
tor after his appficatton to join the 
Resistance is rejected. Plane Btatee 
stars (1974)JEngftsh subtitles). 

1245 Film: fetor's Children. A manner 
of the Ned Party at tempt s to rescue 
his lover when she is imprisoned to 
a labour camp. Drama, starring Tim 
Holt and Bonita Gfranvftie (1943). 

2.10 Ctoaa. 


GuOO GMTV. 42S Gknmo a 1151 The fTV Chan 

Stw. 1230 pm Stating from Scratch. 

150 UN News; Weather. 

1.08 London Today; Weather. 

1-10 Wortd Cup ’Ole LA Branch. Tony 
Francis previews tomorrow's final in 
Los Angeles with help from Jack 
Chariton, Denis Law, Ray waidns 
and Don Howe. 

150 Movies, Games and Videos. 

Reviews of Maverick and The Bev- 
srfy HBMUea. 

2.10 WCW Worldwide Wtastfing. 

250 Life Goes On. 

355 Burke’s Lew. Amos rescues a 
beautiful private eye as they both 
investigate the bizarre rrnsder of a 
wealthy banker. 

445 ITN News; Weather. 

550 London Today, Wea ther. 

5.15 Time Tract. Pilot episode. SF thriller 
about a 22nd centisy cop who 
chases a political assassin back In 
tima to 1993- Dale Mdkif? stars. 

450 Celebrity Squares. New series. Bob 
Monkhousa hosts as guests includ- 
ing Joan Sims and Wendy Richard 
help contestants win cash and cars. 

750 Stars In The* Eyas Final -Live. 

The best singers from the series 
take the stage in the hope of being 
crowned 1994 wtoner. with viewers 
voting by phone far the eventual 
winner. Hosted by Matthew Kefiy. 

850 RN News; Weather. 

445 London Weather. 

850 Stars in Their Eyes Final - The 
Result. 

955 Fttrn: The Delta Force. An e£te 
squadron takas on terrorists who 
have hijacked a charter tfight bound 
ire Athens. Action adventure, with 
Chuck Norris. Lee Marvin and Martin 
Balsam (1988). 

1155 World Cup '94. Hlghttghts of 
tonight's thkd-ptaoe final in Lae 
Angeles, and a look ahead to tomor- 
row's finaL 

1250 Tour of Duty. 

155 Get Stuffed; TTN News HeaGines. 

150 The Btg E^ fTN News Headtaies. 

255 Slot Machine. 

350 NewMnrfc. 

450 BPM. 

550 Hot Wheels. 


CHANNEL* 


too 4-TU on View. &3S Eariy Momhg. 1000 

Trans Wortd Sport HJB Gasfc Gam. 12JX3 Tte 

Bg 89 W- UJO pm A Grfa FataLadoysafEhgtafi 

iitaiitete 

1255 Rbn: Dfane. A 16th century French 
countess fate for the king's son as 
she prepares ten tor Ws impentSng 
marriage. Hniraicai melodrama, 
starring Lana Turner and Roger 
Moore (19S5L 

255 Racing tram Newmarket The 5.15 
Food Brokere Aphrodite Stakes. 

345 Primula Maiden Stakes, 4.15 
Food Brotera Trophy, raid the 4.45 
Chemist Brokers SakXi Satectrves 
Handicap Stakes. 

555 Brookskle,- News Sranmary. 

430 Opening Shot. F*n toflowing 16 - 
y&ar-oW giitar sensation ‘SmoWn 
Joe' Bonamassa, as he visits Mem- 
phte to cut hia first album. 

750 Tora De France. Stage 12: The Pyr- 
enees to am. 2245km. The rtdera 
leave the mountains and embark on 
a (pueBng six-hour stage. 

750 Carreras, Donungo, Pavarotti, 

Me hta In Concert Another chance 
to see the unique 1990 concert 
filmed fn Rome, as three of the 
world's greatest tenors Joined forces 
tor a musical e x travag a nza. 

9- IS A Night with Derek: You Know 
What I Mean. Profile of director 
Derek Jarman, who died of an Akte- 
ralaled Vness earfier this year, 
shown as an introduction to a night 
of his tarns. 

1055 FSm: The Tempest. Adaptation of 
Shakespeare's play, a tragicomic 
fantasy sal In a wortd outside flme. 
Haathcota tMBame and Toyah Win- 
cox star (1980). 

12.18 ra m : The Last of England. Surreal 
mortage depicting the decline of 
Britain through Images of urban 
decay and pofitical oppression. TDda 
Svrinton and Nigel Terry star (1987). 

255 Ftatc Blue. Derek Jarman’s unusual 
contemplation of life and death in 
which a blank blue screen is accom- 
panied by a soundtrack of music, 
poetry and narration (1993). 

350 FBne Sebastiane. Strttdng account 
ofthe Bta of earty Christian martyr St 
Sebastian, a Roman sokfier ban- 
ished to a remote mStray erntp^e 
With Lsonanlo Travigto (1975). 
(English subtitles). 

556 Close. 


SUNDAY 


400 GMTV. 9l28 The Littost Hobo. 10.15 Link. 
1430 Swidsy. 11 JJO Morning Worahfa. 1240 Suv 
rfay. 1230 pm Cross talc London Weather. 

150 ITN News: Weather. 

1.10 100 Women. Provocative and infor- 
mative debate from a temafe per- 
spective, chaired by Sheena 
McDonald. 

250 Highway to Heaven. 

255 Hkne The Mooft-Spfemers. Two 
British tourtsta get caught up in a 
jewellery theft when they visit the 
Greek Island of Crete. Disney famfly 
adventure, starring Haylsy MBs 
(1964). 

550 The London Programme. Camaras 
fofiow the work of the London 
Ambulance Service, examineng the 
reefty of handtag health emergen- 
cies on the capital's congested 
streets. 

550 London Today; Weather. 

446 fTN News; Weather. 


650 Dr Quinn: Merfldne Woman. Col- 
lean develops a crush on Sully after 
ha saves her Efe, and tries to engi- 
neer another crisis so that she can 
enjoy the sensation of being rescued 
again. 

750 171 Be Alright on the Night VL 
Denis Norden presents another 
selection of TV blunders ihailhe 
stars wortd rather had stayed on the 
cuttkig-roam floor. 

8.00 World Cup *94. Full coverage of the 
final from the Rose Bowl, Pasadena. 
Mora than 92JM0 spectator* are 
expected to M the masstvs open-air 
staefium outside Los Angeles to see 
which nrtion can fottow in the foot- 
steps of champions Germany, and 
add their name to the fist that also 
Includes Brazil, Italy, Aigenttoa, Uru- 
guay and Engtard. In the evert of 
extra time and penalties, subsequent 
programmes may run late. 

1150 ITN News; Weather. 

11.10 London Weather. 

11.15 The London Documentary. A 
revealing insight Into the battie to 
unseat MftwaTs British National 
Party cotnctttor Oerek Beeckon. 

12.15 The Restaurant Shaw. 

1245 Married - With CMhfran. 

140 Get Stuffed; ITN News Headtees. 

145 Cue the Music. 

245 Music from the Circus. 

3.15 Off Beet; ITN News HearOnes. 

345 Ftan: The Courage end the Pas- 
sion. Mitary eframa, starring Vince 
Edwards (1978). 


RADIO 


CHANNEL4 


410 Early Morning. 446 The Odyssey. 1<M5 

Saved by the Bel. 1045 RawNde. 11 j 4S UtUe 

House on the Pravta 

1245 Fare 48th ParaBeL Six Nazis 

stranded r Canada try to escape to 
the stifi-nautral USA. Second world 
war thriller, staring Lesfie Howard. 
Laurence Olvier and Glynis Johns 
HM1). 

350 Three Knights. Animated tale of 
berowm. 

3.18 M e c fa etfr. Lavish version of Venfi's 
opera based on the ShatoMpeera 
tragedy about murder. rntMeas 
ambition and witchcr a ft in medtoval 
Scotland, performed at Ovanfinna 
Cashe, Fatend. 

555 Tour De France. Stage 13: Castras 
to MontpelBar. 1925km. A stage tra- 
dttionaBy won by one of the sprint- 
ers. 

425 News Summary. 

450 The Cosby Show. 

750 One Man and Ms Boat. Robert 
Perkins' myage of discovery across 
Britain n a small native American 
cano& His quest takes hm along 
the Thames from Greenwich to 
Oxford, where he joins the canal 
system to Birmingham, Manchester 
and Cumbria, before crossing the 
moors in search of his famtty Inks in 
Scotland. 

850 F*tc Stand by Yow Man. Biopic of 
Courtly and Western music singer 
Tammy Wynette (Annette O’Toole), 
foOovring her Hte end career from 
impoverished chiktxxxi to fetama- 
tional stardom. With Tim Mdntire 
(TVM 1981). 

245 Him: She’fi Be Wearing Pink Pyja- 
mas. Warm-hearted drama about 
eight very d/Tarert women who 
embark on a grueling outward 
bound sunrtval course in the Lake 
District and ctecover that their 
shared herdrfup helps break dawn 
personal banters. Starring Julfe Wai- 
ters, Penelope Nice, Anthony Hig- 
gins. Jam Evers and Paula Jacobs 
(1985). 

1155 Street Musicians of Bombay. FBm 
following the many musicians, busk- 
ers and eunuch gangs who ply their 
trade on the eft/s bustfing streets, 
nuking metanchoty music for the 
entertainment of tourists and other 
passere-by. 

1255 Fane Ivan’s ChBdhoodL Soviet 
second world war drama about a 
Russian youngster who becomes a 
spy after Ms family is mass a cred by 
the Nazis. Kolya Burlyaev stars 
(1962). 

256 Cfose: 


REGIONS 


rrv BB ci oir s as London excbft at the 

Kuoamanm. 

suniia- 

1230 Movies, Gem and Videos. 125 Angta 
News. 1A0 Nlpl Menses's IndyCar 2.10 Guns- 
mota It Tire Last Apache. (1900) 450 Knight Rider. 
400 Ai^d News rad Sport 446 Anglia Weatnar 

RPfTP dt : 

1230 Movtes. Games and Videco. tJB Border 
Nevrs. 1A0 Ngef ManseiTs IndyCar '04. 210 H«p 
School, USA. (TVU 1983) 400 Superstars of Wmz- 

Wng. 4AS Border Newe and Weather 

CENTRAL: 

1230 America's Top 10. IjOS Central News 210 
Rocksport £30 The Mouvsm Bke Show. 300 
WCW Wortdwtde Wrssfing 330 The Fan Guy. 5 lOO 
Central News 5.05 Cartoon Time. 445 Local 
weather. 

CHAM54: 

1230 The Utfest Hobo 135 Channel Diary. 1.40 
Nigel Mansell's IndyCar *94. 210 Carry On 
Toactier. (1959) 330 MacGyver. 5-00 Charnel 
News. 4L05 Ftafln’s PUflce. 5-10 Cartoon Tima 

dtAMPlANi 

1230 Carme Ce. 1J)S Grampon HeuSnes 1A0 
Tdefios. 210 Ciirm Ckxnna 240 Monster Trucks: 
Ractng 10 the FMsh. 230 Mgel Mansers IndyCar 
'94. 4dOD Superstore of wteilng. 5J» Grampian 
HeadBnes 403 Grampian News Review. 0.45 
Grampian weather. 

GRANJUJA: 

1230 Modes, Games and Videos. 135 Granada 
News 140 Mgd ManseTs IndyCw 94. 210 M^i 
School. USA. (TVM 1983) AJ» SuperStan t* Wto- 
OinB. 433 Granada News 530 Cartoon Tkim. 

HIM 

1230 Movies, Gann and Videos. 135 HTV News. 
140 Mgd Mansers tndyCar -94. 210 No Deposit. 
No Rehsn. (1976) 4.15 The MauSan Bika Stow. 
400 HTV News. 335 Cartoon Time. 046 HTV 


1230 The LMest Hobo. 133 Madge News. 140 
Nigel Manseirs IndyCar *94. 210 Carry On 
Teacher. (1959) 330 MacGyver. 530 Meridian 
News. 

SCOTTISH: 

1230 An Innts Ajgh (The Happy We). 135 Scotland 
Today. 140 Tetefos 210 SwensuL (TVM 1989) 
255 The A-Team. 330 Scotland Today 410 Car- 
toon Time. 045 Scottish Weather. 

mm ms 

1290 Burst 133 Tyne Tees News. 140 Zone. 205 
Htfi School, USA. (TVM 1083) 330 Knlgrt Rkta. 
530 Tyne Tew Saturday 

ULSTER: 

1230 SUS. 135 UTV Uve News 210 The Mountain 
Bta Show. 240 The Munstas Today. 405 Kn«ht 
Refer. 430 WCW Wortdwide Wresting. 530 UTV 
Live News 045 UTV Live Newe 
wiOTCora r mr. 

1230 Movies. Games and Videos. 13$ Westcouv 
try News. 140 Mgd MraseTs IndyCar '94. 240 
The ArTeem. 435 Cartoon Time. 330 Baywatch. 
530 W Bsaxxaiiry News. 045 Local weather. 

1230 Movies. Games and Videos. 135 CNonrte 
News. 140 ZbrroL 205 Mgh School. USA. (TVM 
1983) 330 Knight Rider. 530 Calendar News 
84C VMm m Cti ■!■!<[ 4 niTipt: 

730 Earty Morning. 1030 Ftar*S«Jwm. 1230 
Trane World Sprat 130 Fottes Bargera. HB3S 430 
Shoot the Video. 730 N a w y dc B on 7.10 Gems* 
Heb Ffriow. Jeux Sans Fronderes. 030 Tour De 
France. 030 Hot Stuff . 


REGIONS 


AS LONDON EXC0T AT 1M 


225 The New Scooby Doo Movies. 1035 Syhes- 
tar. 1230 Couiliywkta 1235 Anglia News. 200 
Cartoon Time. 215 Wanted: Deed or Alve. 245 
Fattier Dowing InvesUgetas. 240 The Karen Car- 
porter Stray. (TVM 1969) 425 Angta taws on 
Sunday 11.10 Angfia Wa n ther. 11.15 Street Legal. 
BOWPOb 

9l 25 The New Scooby Doo Moms. 1035 Sylves- 
ter. 1230 Gardener's Diary- 1235 Border News. 
200 Parent Trap IV-. Hawsban Honeymoon. 235 AS 
Hands on Deck. (1961) 446 Comnadon Street. 440 
Border News. 11.15 Pneorar Cel Stock H. 
CORRAL: 

425 The New Scooby Doo Movies. 1035 Sylves- 
ter. 1230 Central Newsweek. 1250 Central News 
200 Taka 15. 215 Gardening Tara. 245 Dfao- 
saurt. 210 OU Yafler. (1857) 445 Mradsr. She 
Wrote. 540 Central News 11.10 LoczV Weather. 
11.15 Prisoner GeB Block H. 

425 The New Scooby Doo Modes. 1035 Sylves- 
ter. ILOOStsstey Service. 1145 Bcon. t230 Gar- 
dener's Diary. 1255 Grampian Headlines. 230 
Deskra (1954) 4.15 Mows. Gams rad Videos. 
445 The ArTerav 540 Grampian Headfines 11.10 
Grampian Weather. 11.15 Prisoner Csfi Bkx* H. 
GRANADA: 

425 The New Scooby Doo Movies. 1035 Sylves- 
ter. 1225 Chata Chelie. 1255 Granada News 230 
Parent Trap fir. Hawaiian Honeymoon. 255 AB 
Hands on Deck. (1861) 445 Dr Guinn: Medicine 
Woman. 540 Granada News 830 Coronation 
Street- 11.15 Prisoner Cefi Block H 
filtt 

425 The New Scooby Doo Modes. 11X06 Sytves- 
ta. 1225 The Utttoet Hobo. 1255 HTV News. 330 
Soktor of Fortme. (1972) 440 On Your Street aio 
Great Westerners. 540 HTV News. 630 Dr Oidm: 
Medical Woman. 11.10 HTV Waerher 11.15 Pris- 
oner. GeO Block H. 

425 The Nbw Scooby Doo Movies. 1035 Sylves- 
ter. 1230 COPS. 1230 Mercian taws. 200 Ufa 
Goes On. 255 The A-Team. 445 lOghway to , 
Heaven. 540 Menelra News. IMS The Eyes d ! 
Laura Mres. (1978) 
scums** 

423 The New Scooby Doo Movies. 1035 Syhres- I 
tar. 1130 Sundw Service. 1145 EJton. 1230 
Skooeh. 1255 Sootlrad Today. 230 Father Dow- 1 
Bng rnvestlgaies. 255 Sayonara (1K7) 540 Scot- 
land Today 11.10 Scottish Weather, n.is The 
Diamond Marcenarias. (1975) 

TYNEINBOe 

425 The New Scooby Doo Movtae. 1035 Sylves- 
ter. 1225 Ne w swee k. 1255 Tyne Tees News. 235 
The Magnificent Seven. (1960) 5.15 Tyne Tees 
Weekend, 11 . 1 s The Everest Marathon. 


425 The New Scooby Doo Maries. 1035 Syfree- 
ter. 1230 Wes te o u n k y Update. 1255 Weatoountty 
News. 215 Dogs with Dunbrr. 245 Brief Encoun- 
ters. 215 OU Yalta. (1957) 430 Murder. She 
Wrote. 540 Wfestcourary News. 11.15 Prisoner 
Cefl Block H. 


425 The New Scooby Doo Maries. 1036 Sylves- 
ter. 1225 The Utdest Hobo. 1250 Calendar News. 
255 The MapXcara Seven. p90O) 5.15 Calendar 
News and Weather 11.15 The Everest Marathon. 


SATURDAY 


SUNDAY 


BBC RADIO 2 

400 Sufma Barot 405 Brian 
Matthew. 1400 Judl Spiers. 
1200 Hayes on Saturday. 130 
You Cant Have One Without 
the Other. 200 Roy HudtTe 
Vintage Music Hofi. 200 Ronnto 
Htoorv 430 Joan Bssl 530 
Nick Bemtclough. 400 Bob 
Hotness Request:; the Pleasure. 
730 Ctnenu 2 730 On Stage 
Joan Bore. 430 The Soy With 
a Note. 930 David Jacobs. 
KLQO The Arts Programme. 
123S Ronnie Hlffon. 1.00 
Charles Nova. 4.00 Su|ala 
Bam. 


BBC RADIO 3 

430 Open LtavcreKy: Whatever 
Happened to the People's 
Home? 035 Wsathor. 730 
Satuoay Morning Concert 
400 Rom News. Now series. 
The 100th aeeson of Henry 
Wood Proms. 430 Record 
Roteasa 1230 Spirit of the 
Age. 130 Into the Garden. 1.15 
Mrala Frent 215 Robert 
Cohan and Pater Oanohoe. 

435 TchaAovsky. 530 Jszz 
Record Requests. 545 Key 
Questons. New series. 

Feabstng a panel of 
professional musicians. 030 Al 
" a Garden Green. 730 BSC 
Pmno 199*. 1030 Studto 3: 
Spit Roots. 1130 im pnsuo n s . 
124SCtoae. 


BBC RADIO 4 
flJBNewo. 


410 The Farming Weak. 
HortkaABrt tfas. 

630 Prayer far the Day. 

730 Today. 

400 News. 

406 Sport on 4. News an) 
conversation. 

430 Breakaway- tafcWy and 
traveL 

1030 W ha tever Happened To? 
LKBe Lord Faunderoy. 

1030 The Masteoon 
tnherhanoa. 

1130 The Week ih 
Wesc rt waa. 

1130 EuopN4 ■HeeWi 
tourism' In Hragary. 

1230 Manay Box. 

1225 A Look Back attfis 
Fuase. Awrad-wtoning corrady. 
130 News. 

1.10 Arty Questions? 

200 Any Answers? 071-580 
4444. pnonofa response 

P«VyTi6TIITroi 

230 Playhouse: Gcntraband. 

By John FMtchsr. 

430 Htstory on the H 00 L 
430 Sctenos Now. 

630 Re on 4, 

5.40 Six of CU». Former 

Weieh nlflfiy ptefta Ray Graven 
taka about toe importart itfe 
of UsneH RFC to Ne Hb. 

830 News and Sports. 

025 The Mark Steal SoUwn. 
450 AdUb to Mania. 

730 Katekkacops Fsatm 
730 SaMdftf Mght Thtatrec 
The ffigh FtPrtter. By Roger 
StermetL 


420 Male to Mind. 

450 Ten to Ten. A moment's 
rsOocttan. 

1400 taws. 

1415 Ward of Mouth, 
interesting farms of address. 
1445 They Don't St* Meta 
That, Do They? Gtogs. 

1130 The Tingle Factor. 
1130 Brave New World. 
1200 Newa. 

1233 Swing Rreeaet 

1243 (FbO Ctoea 

1243 (LW) As Wortd Ssrvks. 


BBC UMNO 5 UVE 

635 Dirty Tactos- 
630 The Breddast Programme. 
930 Weekend with Kershaw 
and Wttttakor. 

1135 Soectal Assignment. 
1135 The Ad Break. 

1200 Mkfcfay Edttkxi. 

1215 Sport on Five at the 
Of** 

735 Saturday Bfition. 

435 Out This Wm*. 

1035 The Treatment. 

1130 Pfight Extra. 

1235 After hour. 

230 Up Afl Night 


WORLD SBMCE 
BBC for Europe ca n be 
received in western Baope 
on Wedtan Were S*** 12 

(463m) at these times BSTl 

630 Morgeomagazm. 630 
Europe Today- 730 World aid 
BriWi News. 7.15 The Wortd 


Today- 730 Mencfian. 400 
World News. 415 Waveguide. 
835 Book Chotoe. 830 People 
and Punka. 930 World News. 
939 Words of Faith. 415 A 
Jo*y Good Show. 1030 Wortd 
News and Business Report 

10.16 World brief. 1030 
Devstopi ra rt 94. 1045 Sports 
Roundup. 1130 Printer's DevO, 
11.15 Letter from America. 
1130 BBC English. 1135 
Mittogsmagazln. 12.00 
Hows desk . 1230 Meridian. 
130 Wortd News. 13s Words 
ol Faith. 1.15 MuWtrack 
Alternative. 1-45 Sports 
Roundup. 230 Newshora. 200 
News Summary: Sportswortd. 
430 Wortd taws. 4.15 BSC 
Engtetv 430 Heute AMub4 
530 Wortd and British News. 

5.16 Spcrtswcrtd. 630 BBC 
Bigflsh. 630 Heute AMuett. 
730 News end features In 
German. 030 Prome 94. 400 

Wortd News. 409 words of 
Faith. 415 Development 94. 
499 Merirtwi. 1030 Newshou. 
1130 World News. 1135 
Words of Farth. 11.10 Book 
Choice. 11.15 Jszz for the 
Asktog- 11-45 Sports Roundup 
1230 Newsdesk. 1250 Bert 
on Record. 130 Wortd and 
Britton News. 1.15 Good 
Books. 1JD The Jotsi Dunn 
Show. 230 News Summery; 
Ptoy of the VVeefc A Night Out 
3 30 Newsdesk. 250 Cyprus - 
A Ufa Apert 430 Newsdesk. 
430 B8C English. AM News 
and Press Review in Gramsn. 


BBC RADIO 2 

730 Don Maclean. 405 
Mdta AspeL 1450 Hayes an 
Sunday. 1230 Desmond 
C a rrington. 200 Barmy Green. 
400 Alan Del. 430 End of the 
Pier. 430 Sing Something 
Simple. 330 Charte Chester. 
415 Three Tenors Concert 
1994- 8.15 Motto Ogawa. 230 
Sunday Hafl How. 400 Alan 
KNth. 1000 "The Proms: 100 
Not Out? 1236 Steve Madden. 

330 Alex Lema. 


BBC RADIO 3 

830 Open IMvorsfiy: Animal 
Physotogy, 635 W cnf nr. 730 
Sacred and Profane. 400 Brian 
Kay's Sraday Morning. 1280 
FOB Score 130 Musical Tates: 
Peer Gyre 1.15 Nonh German 
Redo Symphony Orchestra. 
235 Celebrity Rectal 425 
Seer Redo Symphony 
Orchestra. Me n d dMO hn. 
Weber. Brahma 5L45 Making 
WHvea. Derilngton Music 
Summer Sdxxa and Arte 
Fesavai. 630 Chopin. 735 
Rom News. The 100 th seam 
of Henry Wood Promo 730 
BSC Proms 1994, Berta, 
Tchaikovsky, tae, Copland. 
440 Surety Ray: The Bucher 
of Baghdad. By John Spurting. 
With Brira Glover. 11.15 Choir 
Works. Boflreand Messtaan. 
1230 Ctosa 


BBC RADIO 4 

400 Nee 


410 Prelude. 

630 Momtog Has Brofcan. 

730 News. 

7.10 Snte Papers. 

7.15 On Your Farm. 

7M &nfe y, Rdgious news 

rad views. 

450 The week's Good Cause. 
The Open Spaces Stately. 

930 taws. 

410 Sunday Papers. 

415 Letter from America. 

430 Momtog Sente* 

16.16 The Archers. Onrtws. 

11.15 Medh rm i a va 
11.45 Waters Beside the 
Seaside. 

1215 to the Pf ch to toTa 
Oat. 

130 The Wortd Weekend. 
200 Gerdraars’ Ouastton Time. 
230 Classic Sntet The House 
in Parte. 

230 Pick of the Week. 

4-15 Power and DtootOer. 

630 The (tantham 
Correction. 

530 Poetry Please! 

030 8to (retook News. 

216 Letter tram Scotland. 

830 The Secret Garden. By 
Frances Hodgera Burnett. 

730 Barging across Europe, 
730 The Airport. 

830 (FM) Htetory on the Hoof. 
200 (LW) Open UNvettefy. 

230 (FM) Raering Afoul 
930 (FM) The Nehnl l-fetory 
Progr a mme. 

930 (FLfi Big Brag. 

1030 News. 


1415 The Agony and the 
Legacy. The oonOet to 
Northern katonri 
1045 Home Truths. 

11.15 to Comnanee. 

HAS Seeds of Faith. 
1200 News. 

i230ShtePtog Foreesre 
1243 (LW) As BBC WQrid 
Service. 

1243 (FM) Qase. 


BBC RADIO 5 UVE 

405 Hot Piasters. 

630 The Bratedest Prograrrma 
400 Atsstak Sfawerfs Sunday. 
1230 Mddsy BdMoa 
1215 The Og Byre 
13* 8urriay Sport 
730 News Extra. 

735 Bta* to the Futon. 

835 World Cup *94. 

1035 The Ad Break. 

1130 NgM Btfra. 

1205 MghtoaA 
200 UpAI MghL 


WORLD SERVICE 
BBC far Europe can be 
ree a h wd In re e etem Europe 
on Medton Wove 6*8 kHZ 
(4Samj at thee* fanes 8ST: 
630 Nows end features to 
German. 030 Conposw of the 
Month. 730 Mtortd end Brttteh 
News. 7.15 Letter from 
America. 730 Jazz For The 
Asfctog. 400 World News. 415 
uec As a Was. 830 From 
Oir Own ConnspondenL 030 


Write On. 400 World taws. 
408 Words ol Faith. 415 The 
Greenfield CoBectton. 1030 
World News and Business 
Review. 1415 Short Story. 
1030 Folk Routes 1245 
Sports Rountere 1130 News 
Summary: Science in Action. 
1130 BBC English. 1135 
News and Press Review to 
German. 1200 Newsdesk. 
1230 The John Dum Show. 
130 taws Summary; Play of 
the Week: A Ngfit Out 200 
News hour. 400 News 
Summary; The Hrat Fool on the 
Moon. 330 Anything Goae. 
430 world News. 4.15 BBC 
English. *.30 News end 
featues to German. 530 Wtorid 
and British News. 5.15 BSC 
Engfah. 630 Wortd News and 
Busfneoo Review. 415 Printer’s 
Devi. 430 News and features 
in German. 230 Best on 
Record. 830 Ewope Today. 
930 Wbrid News. 409 Words 
ol Faith. 415 A Question of 
Science. 930 Brain of Brttah. 
1200 Nswshour. 1130 World 
News rad Business Review. 
11.15 Sportsworid. 1230 
Newsdesk, t230 The Fast Foot 
on the Moan. 130 Wortd and 
British News. 1.15 Pop the 
Question. 130 In Prafae of 
God. 200 News Sranraay; The 
Sea, The Ses poems, prose 
end music. 245 Music As it 
Was. 200 Newsdesk, 330 
Composer ol the Month, 430 
Newsdesk. 430 BBC Fngfeh. 
*45 Ffuhmegezto. 


Joop van Oosterom, a retired 
Rotterdam computer software 
milli onaire; is the philanthro- 
pist of the chess world with his 
annual £50,000 match between 
teams of top women and vet- 
eran grandmasters. 

The women woo 37-35 at 
Monaco but the oldest player 
had the best individual score. 
Vassily Smyslov, 73, who has 
recently had operations on 
both eyes, beat the Polgar sis- 
ters and totalled 8/12 against 
opponents who were not yet 
bom when he won and lost the 
world title in 1957-58. 

In his autobiography. In 
Search of Harmony, Smyslov 
alludes to his chess style and 
to the sin g in g career be once 
considered. Me prefers quiet, 
strategic games based on the 
blend and activity of well- 
placed pieces, thus reducing 
the role of detailed tactics 
which suit younger opponents. 

This week's game shows an 
original Smyslov theme. His c4 
and e4 pawns control a blocked 
centre, while his d2 pawn 
remains unmoved. From fhi» 
solid base, white pawns and 
pieces storm the black king. 

Playing through the game. I 
often wanted to make the rou- 
tine advance d2-d4, but Smys- 
lov is right When Black finally 
captures this pawn, her game 
is resignable. 


(V. Smyslov. White; N. Iose- 
liani. Black; Monaco 1994). 

1 ©4 c5 2 NO d6 3 Bb5+ Bd7 4 
Bxd7+ Nxd7 5 04) NgfB 6 Qe2 e6 
7 c4 Be7 8 b3 04) 9 Bb2 Re8 10 
Nc3 afi 11 Khl QC7 12 Rael Bffi 
13 NgS fa6 14 Nh3 Ne5 IS f4 Nc6 
16 g4 g6 17 Qg2 Bg7 18 gS hxgS 
19 Nxg5 Nd4 20 e5 Nh7 21 Nxh7 
Kxh7 22 Ne4 axe5 23 b*5 N15 
24 N(6+ BxfS 25 exfG KgS 26 BeS 
Qd7 27 Qg5 RadS 28 Rxf5 
Qxd2fexl5 29 Qb6 mates) 29 
Qsd2 Rxd2 and Black resigned. 
30 Rg5 RsaP. 31 h4 is a winning 
attack. 



Chess No 1030 

White mates in two moves 
against any defence (by L. Fin- 
zer, 1976). A sneaky problem 
for the unwary: watch for the 
composer's trick. 

Solution Page XX 


Leonard Barden 


BRIDGE 


This interesting hand occurred 
at rubber bridge. Here is 
Looking for Clues: 

N 

4 A 8 6 3 
¥ A7 
♦ Q9 
4 K8542 
W E 


W 

A Q 5 4 
V J63 

♦ 10 8 5 2 

* Q10 3 


4 9 

V 10 9 8 5 2 
+ AE7 43 
f J9 


A K J 10 7 2 

* KQ4 

♦ J 6 

4 A 76 

With both sides vulnerable. 
South dealt and opened the 
bidding with one spade, to 
which North replied with two 
clubs. (In my opinion, this 
reply is best. Three spades is 
an underbid and four spades 
gives a wrong picture of 
North's hand.) South re-bid 
two spades and North’s bid of 
four spades ended the auction. 

West had no a t t ra c t iv e lead 
and Anally chose the two of 
diamonds. East cashed his king 
and ace and switched to the 


two of hearts, which ran to 
dummy's ace. Now. in an aver- 
age game, we know what the 
declarer does. With nine 
trumps between the two hands, 
he cashes ace and king to drop 
the queen. West, however, 
holds the guarded queen and 
declarer must go down, as 
there is also a club loser. 

But this declarer, a first-class 
player, turned detective before 
he tested the trumps. He 
cashed the king and queen or 
hearts, West dropping the 
knave on the third round. He 
crossed to the club king, 
returned the two to his ace. 
and cut adrift with the seven. 
West won with the queen. 

South started to count. West 
had produced three hearts, 
three clubs and. in view of his 
lead, started life with four dia- 
monds. Therefore he had three 
spades. Ruffing the diamond 
ten. South cashed his spade 
king, on which East dropped 
the nine, and then ran his 
knave, which held. Contract 
delivered. 

E.P.C. Cotter 


CROSSWORD 

No. 8,507 Set by DINMUTZ 

A prize of a classic Peli kan S ouverttn 800 fountain pen. inscribed with the 
winner’s name far the first correct solution opened and fir's runner-up 
prizes of £35 Milan vouchers. Solutions by Wednesday July 27. marked 
Crossword 2507 on the envelope, to the Financial Times, Number One 
Southwark Bridge. London SRl 9HL. Solution on Saturday July 32 



ACROSS 

1 Grand coelacanth, far exam- 
ple. found in a bowl? (81 

5 Mark, crazy imaglst who loses 
head (6) 

9 Nemo’s mollusc? (8) 

10 Islamic ruler's hip replace- 
ment at California (6) 

12 Edgy former partner could be 
summoned to appear In court 
19) 

13 One who rides a fan? (5) 

14 Man, fin* example, in tennis 
let (4) 

16 Wild river of Spain, all 
French finally (7) 

19 Admiral, perhaps, taking day 
off to pot one in high post? (7) 

21 Cheat leaves console alone (41 

24 Hated stormy finish? (5) 

25 Pop feigned suffering, we 
hear {9) 

XT Fun in old theatre (6) 

28 Own, through arranged 
loans? <8) 

29 Messenger now from Rome at 
number 10 (6) 

30 Border methods of inserting a 
word? (8) 

Solution 8^506 


QODEEQ 

H □ □ O ID E 

QHHIUtDaH QDDDBDDl 

□ a Q E 0 HI H 
□□□□□□□HEB OHCIQl 

a a □ e n 
Sanaa QQsnanQOl 

□ 0 □ E Q 

aaaEHaaa deque 

a □ o q o 
aaaa □□edoeedde 
e a m b q a a 
0000300 □□□□□ucjI 
B □ 0 0 0 0 

□00000 00QD0O 


DOWN 

1 Ran out from more impres- 
sive glance (5) 

2 T ender article in ploughman's 
course (6) 

3 Feeble mock attack reported 

(5) 

4 Sunday pitch makes one come 
a cropper (7) 

6 Caravanner’s device to find 
fungus (9) 

7 American football field net- 
work (8) 

8 Gnome, he leaves strange 
H ampshire circle (8) 

li Bring up or buck up (4) 

15 Pasta for western use? t9) 

17 Amusing sort takes a gin 
cocktail in a knitted jacket (8) 

18 Haydn's brainchild ? (8) 

SO Speed to beat (4) 

21 Top tennis player, full of won- 
der, in tangle (7) 

22 Calendar for one sex, we hear 
161 

23 Lands authentic manuscript 

( 6 ) 

26 Overture to Euryanthe at first 

is old-fashioned (5) 

Solution 8,493 


□□01330 □□BGODED 

□ □ o namn 
aanana □bhooedeo 
00000000 
□□□0 00000 0000 
aaBQnoBQ 
□00a00000BHQ 
3I10DD00O 

00QD0000QQ00 

□ HQDOB0E 

3000 0O0QO 0000 

a 0 0 □ □ n □ □ 

000130000 □□□□BD 

a a a b hob 
oanaoBOB 0onD00. 


WINNERS 8.495: DJS. Martin, Worie, Avon; AX. Char les Crabbv 
Alderney. C hann el Islands; E.A. Littfa Newiyn. Cornwall; Peter j 
Rowland. Brentford, Middlesex: Miss Elizabeth D. ScotL atinbu 
HA Scott, Blythewood, South Carolina. USA. 






XXII WEEKEND FT 


financial TIMES WEEK£ND JULY [6/JULY [7 1994 * 


Private View/ Christian Tyler 




A fter work, mandarins 
are supposed to go to 
Covent Garden for the 
opera or. at a pinch, 
the ballet. Valerie 
Strachan. the most senior woman in 
the British civil service, likes to go 
Scottish dancing. 

Times are changing at the sum* 
mil of the Establishment, and will 
change again as a result of a white 
paper published this week. Stra- 
chan is a symptom of that change. 
The chairman of the board of Cus- 
toms and Exrise is a woman, bat 
she is a woman who does not waste 
time pretending to be a man. 

Appearances, we all know, are 
deceptive. So encountering an 
eager, chatty, smiling and feminine 
Permanent Secretary, Grade One, I 
was immediately on my guard. 

Valerie Strachan. is tall with a 
strong handsome lace, wide mouth 
and innocent brown eyes. There is a 
look about her of those rangy 
female te nnis players who used to 
bound about Wimbledon in the old 
days. Or one could imagine her as a 
painter and artist's model from the 
free- thinking, free-loving Blooms- 
bury Group. 

Whatever the comparison, she 
appears altogether too jolly, too 
□ice, to be running a government 
department charged with hunting 
drug-dealers, pornographers and 
smugglers, let alone enforcing the 
collection of VAT. There was some- 
thing gir lishly naive about the way, 
at the end of the interview, she con- 
fessed to a love of Highland danc- 
ing. Or was the naivety just a little 
bit calculated? 

I asked her first if she had 
thought of feminising her title In 
order to reflect current fashion. 

She had thought about it, she 
said, and was committed to equal 
opportunities but had decided 
against. Tfs a traditional title and 
to have changed it would have been 
making a much louder statement 
than I wanted to make." Her staff 
have been told to call her “Valerie" 
or “Mrs Strachan". according to 
how well they know her. 

By coincidence - if it is coinci- 
dence - the three top women in 
Whitehall all run law-enforcement 
agencies. The other two are Barbara 
Mills, Director of Public Prosecu- 
tions. and Stella Rimington, head of 
ME, the domestic intelligence ser- 
vice. Did they talk to each other, as 
women? 

u We do have chats about things," 
she said. “But it’s sort of on the 
hoof, as it were ... me saying to 
Stella as we go into permanent sec- 
retaries (the Wednesday morning 
meeting at the Cabinet Office): T 
know where you’ve got that jacket 
from; I must remember not to get 
the same one.’ That sort of thing. 
Or talking a bit to Barbara about 
some equal opportunities issues." 

Do the male permanent secre- 
taries call you “The Girls”? 

"No." She laughed scornfully. 
"No, nor do we call them The 
Boys’. I don’t think they see us a 
little tightly-knit group. Nor do we 
see ourselves as being a threatened 
minority. All of us have been 
around for a long time and know 
each other really quite well So it’s 
not an issue between os." 

Does it not feel like a men's club? 
“Mmm. Not particularly, no. 
There is a clubby atmosphere but it 
is the club of 20-however-many-it-is 
people, each of whom is at the top 
of an organisation, all of the organi- 
sations having something in com- 


The gentle touch in a tough business 



Mi 1 - r . 




* O ^ 3 


.Z3< rt 


mon. It is not like the Reform Club 
or whatever I imagine other clubs 
might be like." 

Clubmanship, public school and 
Oxbridge are no longer essential 
qualifications for the mandarins £e. 
Strachan herself comes from Hull, 
went to the local girls’ high school 
and to Manchester University, is 
married to another civil servant and 
has two children. 

She joined Customs and Excise 
straight from university (the 
Department of Education was her 
first choice) having little idea of 
what It did. (T thought they were 
the people that chalked your bags 
when you came into the country.") 
She has spent time at the Home 
Office and Treasury. Some say that 
if any woman can make it to the 
very top as Cabinet Secretary and 
head of the home civil service. 
Valerie Strachan can. 

Customs and Excise is not a typi- 
cal government department: it has 
its own matey atmosphere and has 
escaped a lot of the pain of civil 
service reform. But Strachan is, 
with qualifications, a promoter of 
the new business culture. When 1 
suggested that her title, chairman 
of the board, might be getting 
uncomfortably close to the truth, 
she claimed that the white paper 
reinforced the traditional virtues of 
the British civil service. 

Is she a traditionalist or a young 
Turk? 


“Am I allowed to be both? In my 
time I have been as young Turkish 
as anybody, including pushing the 
financial management initiative 
and being a supporter of the basic 
concepts of Next Steps. But I don’t 
see there is a necessary conflict 
between that and between main- 
taining public service values." 

It would be unsuitable to privat- 
ise VAT inspectors, tor example. 

Traffic wardens had been, I said. 
Why not VAT inspectors? 

“I think VAT inspectors are hav- 
ing to exercise discretion and judg- 
ment all the time, every day of their 
lives. I think it is quite important 
that they should be publicly 
accountable." 

Was there nowhere where effi- 
ciency was being won at the 
expense of public service? 

“I think you have tradeoffs, but 
there are all sorts of tradeoffs. In 
real life there are tradeoffs between 
efficiency and collecting the last 
penny of revenue, between obliga- 
tions to get off the back of small 
business and tax morality." 

So you are not going to be put on 
either side of this debate? 

"I would like, please, to have my 
cake and eat it” 

Vatwoman’s main worry at pres- 
ent is the Vatman’s public image. 
Do you mean, I said, that the 
department is hated by business? 

“That’s not what I mean, no. 
What I mean is . . . You haven’t 


mentioned the Citizens’ Charter." 

I dont want to mention it. I said. 

"No, I daresay you don’t" She 
sounded sympathetic. "But we have 
got a lot of charter obligations. The 
tax man is never popular, the tax- 
woman is never popular and 1 don’t 
expect them ever to be. But I have 
felt that we could usefully soften 
the image we present while not los- 
ing our effectiveness. We are law 
enforcers, but we can be friendly 
law enforcers.” 


do is not so much remove causes tor 
complaint but be positively more 
helpful.” 

This week's white paper would 
put senior civil servants on per- 
sonal contracts, with salaries set 
according to performance as judged 
by a company-style remuneration 
committee. They would no longer 
get a fixed rate according to senior- 
ity, and their jobs - some of them - 
would be open to outsiders. 

The head of customs said the pro- 


Volerie Strachan , chairman of the board 
of Customs and Excise, says she has ‘no 
difficulty ’ with the changes proposed for 
the civil service in this week’s white paper 


Are you prepared to say the 
department has been heavy-handed 
in the past? 

She paused and sighed- “No, that 
wouldn't be quite right," 

Do you want to supply a better 
word? 

“Let me think. Urn. We have 
sometimes had a reputation for 
being heavy-handed. The reputation 
has been based on remarkably tow 
instances. When we go out and 
actually ask people what they think 
of us and what they think of the 
service, people are on the whole 
pretty satisfied. What I am trying to 


posed reforms only made explicit 
what was already implicit in the 
mandarin's terms of employment. 
She had “no difficulty” with the 
changes, she said, but was very anx- 
ious that her and her staffs perfor- 
mance should not be judged in 
crude terms - say, by the amount of 
revenue the department brought in. 

Hoping to discover the steel 
behind those candid eyes, I said: 
You smile a lot Or is it just today? 

“No. I think I smile a lot This 
may be, I have to say, a terrible 
character weakness.” She smiled. 

So people think “She's a nice girl 


We can swing this one past her.”? 

"No, I don't think they think that. 
They have probably learned that if I 
think something ought to be done, 
then I will be quite persistent in 
waking sure that it does gat done. 

"I like working with people, and 
working in a co-operative way. But 
at the end of the day, once I've 
heard everybody's views and 
formed a view about how we ought 
to go forward then I will be quite 
persistent.” 

Can you be a brute when 
required? 

“I don’t set out to be a brute. I set 
out to achieve the desired result, 
preferably while making people 
feel... 

You mean they don't feel it while 
you kick them? 

T really do try not to kick peo- 
ple,” she laughed, “because I never 
think bruises are the best way of 
achieving results. 1 mean, there will 
be times when I run out of patience 
and people are aware of the fact." 

Do you mind confrontation? "No, 
I confront if 1 need to confront But 
I prefer to operate without, you 
know, p inning somebody in a chair 
and saying ‘You have (tone wrong.' 

'Tin quite patient - most or the 
time." She laughed again and 
reached for a homely example. 
“Don't try me in the hairdresser's. 
Tm not patient there. One of the 
chief virtues of the man who 
dresses my hair at the moment is 


that he does it on time. I hate beta? a 
kept waiting." " 

I struggled to regain a footings 
The art of dissembling, I said, mra* 
he in the armoury of any top avi’ 
servant 

T don't think that's the way 
operate. I suppose I would lie if 
had to for my country. But on tb 
whole 1 try and negotiate straight 
(She led the negotiations on fh 
European Union single marks 
changes in VAT and excise dot 
collection, and is chairman of th 
world customs co-operation corn 
cil.) "I do try not to dissemble, ft 
not sure 1 could keep it up for Ion 
enough." She paused. "I don't so? 
pose I always show all my negotU 
ting cards." 

I'm sure you don’t, I agreed. Yoi 
probably play poker till late a 
night wearing a green eyeshade. 

“No, no." She laughed- “I hat) 
card games. It's a lovely picture 
though, isn't it?" 

When, finally. I asked her if shi 
had eyes on the pinnacle of the rivi 
service, the Cabinet Office, she sak 
she had not even begun to third 
about it There were “hordes" of 
people - well, several at least - whc 
would be obvious candidates. 

But I got the strong feeling that 
Valerie Strachan would not be suf- 
fused with maidenly blushes if the 
job were offered to her. Meanwhile 
it was time to pack up and gat off tc-; 
dancing class. 


Dispatches/ Cape Town 

Selective amnesia heals the wounds 


Pieter-Dirk Uys says that former terrorists and old fascists are now comrades-in-arms 


Good-bye 

battery 




"What did you do in the struggle? 
The battle far freedom? The apart- 
heid years? Docs anyone remember?" 


T here is an old Afrikaner 
ailment that seems to 
have reached epidemic 
proportions here in this 
most southern African land of ris- 
ing hope. It is called Raubenhei- 
mer's disease. 

It was first noticed after the Boer 
war. when the British empire was 
nearly forced to its knees by the 
Boer guerrillas in the mist. This 
type of warfare was then exported 
to various skirmishes, from Afghan- 
istan to Bosnia, with great success, 
while the British introduced the civ- 
ilised world to their new concept: 
the concentration camp. 

After the Boer war, and while 
there was still great hatred and 
grumbling against the British, the 
Afrikaner found himself, by 1910, in 
a newly-formed union, blue-printed 
by the parliament in London and 
symbolised by the new South Afri- 
can flag: a compromise between 
those of the Cape Colony (Union 
flag) and the two ex-Boer republics 
(not tiie Union flag). The effect of 
this was to trap the Afrikaner in 
the centre of an orange, white and 
blue banner until the stroke of mid- 
night before April 27 1994. 

Raubenheimer’s disease was then 
spotted for the first time to a small 
dusty dorp on the wide plains of the 
Karoo, where Fanner Kaubenhei- 
mer, having just lost his form to 
fire and his fiuniiy to famine, sud- 
denly started speaking English and 
singing “God Save the Queen”. He 
seemed to have forgotten com- 
pletely the reason for the pain of his 
past. 

This - some people said - merct 


[ul amnesia made it possible for 
him to live side by side with his 
bloody enemy In peace. He even 
married again - a younger English 
girl - and they had three sons and 
called them after various recent 
British kings. Some of his bitter 
neighbours, however, swore that 
Farmer Raubenheimer had. in fact, 
lost his marbles. 

It is said that since then all Afri- 
kaners have been bora with a trace 
of Raubenheimer 's disease. In 
decent company it was merely whis- 
pered that these strange bearded 
and braided volk knew how to adapt 
and not to die. "Damn pragmatic" 
and "bloody unbalanced" were 
more often used to explain the 
strange ways by which Afrikaners 
turned the other cheek and then 
whipped round, guns ablating. 

We Afrikaners have always been 
great artists in absorbing - no, call 
it stealing. We would take some- 
thing from another people, maybe a 
Dutch language, and unrecognisa- 
bly beat it up to become Afrikaans. 
Or we would take a democratic 
Westminster system of government 
and bleed it dry of its truth. 

We even legitimised an inbred 
sense of racial madness, gave it an 
official Afrikaans name (that the 
English spelt opart-hate), wove it 
into our statute books “democrati- 
cally” and ended up in the smelly 
corner of the world's classroom 
with a skunk's tail pinned to our 
backs. 

But no more. Chalk has become 
cheese. The bad old days are gone. 
Mandela rules OK! Now, shock- 
ingly. it has become the time to be 
not anti but pro. One is proud of 
being a South African. Political sati- 
rists are jumping off roofs. Nostal- 
gia-wracked anti-apartheid activists 






in ? !3 






are ignoring the complexity of Bos- 
nia and those political prisoners in 
Northern Ireland and are being 
treated tor withdrawal symptoms. 
The black-and-white issues of Afri- 
kanerdom’s experiment in -separate 
development have vanished. 

Like that flesh-eating streptococ- 
cus, Raubenheimer’s disease has 
struck again. Here in tiffs brand 
new South Africa it is impossible to 
find anyone more or less white and 
relatively sane who mil admit to 
having supported apartheid. 

It is the same elsewhere, of 
course, in East Germany, after the 
Berlin Wan came down, there were 
suddenly no communists to be 
found, just as there had been no 
Nazis in Germany In 1945 (nor even, 
particularly, in Austria, Holland or 
France). No one recalls voting Mar- 
garet Thatcher into power all those 
years ago when British democracy 


still bad a ring of authenticity to it 

Some Afrikaners who swore 
bloody revenge on a democratically- 
elected, non-racial, non-sexist gov- 
ernment are now swapping fond 
stories of election-day brums (barbe- 
cues) with their new non-white 
neighbours. Beers In hand, former 
terrorists and old fascists are com- 
rades in arms; a cloudburst over a 
squatter camp is no longer the 
result of bad nationalist politics - 
only of bad weather. 

Amnesties mud amnesias seem to 
go together. There are now more 
free men on the street (and in par- 
liament) with blood on their hands 
than in the prisons. Politically- 
motivated crimes, ranging from 
mass murder to messy murder, 
have a cut-off date - if you blasted 
your enemies away before the cut- 
off, you are fine. 

During our past - until April 27 


1994 - South African democracy 
was too good to share with just any- 
one. As a result, the world hated us. 
Now we are more of a democracy 
than Britain. 

Good news is no news and at the 
moment nearly everything here is 
good news, give or take a couple of 
killings that last year would have 
been called a political massacre: 
now it is just the criminal element 

Everyone in government is united 
by salary and perks, from the old 
regime to the new extreme, from 
Chief Buthelezi to Winnie Mandela, 
the Black Evita, appointed not as 
minister of child welfare, which she 
had rehearsed tor, but as deputy 
minister of culture. (“Culture?” she 
said. “That's a funny post" Please 
do not send her a biography of 
Madame Mao.) 

The world is still fascinated with 
South Africa, though no longer con- 
fronted by the nightly Munch- 
scream of black South Africa on the 
news; no longer turfing the Outspan 
orange into the toilet; no longer 
wearing the “Free Mandela” T-shirt 
and feeling good tor being so good. 

What now fascinates the world la 
this relatively well-educated, rela- 
tively civilised, relatively relatively 
pleasant group of white Christians 
(and Jews) who took the most beau- 
tiful country in the world and 
utterly and completely screwed it 
up - and nearly got away with it. 
And then turned round with a smile 
at the edge of the cliff and handed 
their only parachute to the former 
enemy. 

I thought I started with a ques- 
tion. Perhaps I had the answer. I 
really cannot remember. Call It 
Raubenheimer’s disease. 

■ Pieter-Dirk Uys is a South African 
satirist 




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SEIKO 


The time is now. KINETIC