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TIMES 


in ess Nevvsoaoer 


WEEKEND JULY 23/JULY 24 1994 


S5“r Heat wave revives Japanese consumer spending 

gllll*lAar mSStArisil By Gerard Baker in Tokyo latest high-tech orange-crusher to the tionto current conditions suggests a conditioners were at record levels. On weather is not producing undiluted good 

" *** , ' , ' -, “* ■■ tatamB ISII home-made VOdllirt maker — all thanks boost to RDf>mfliw this VAnr of OS nor tho hotfoot riaw cn far .Xnlw 9 It oaM naom houfmror Siwia mrts nf the COUH- 


The discovery in Germany of weapons-grade 
plutonium, believed to have been smuggled in from 


eras proliferation of Tmrfear material from the for- 
mer Soviet republics. Betud Scinniribauer, an aMa 
to German Chancellor Helmut Rhhl, described the 
fiscovaty, the first time such material has been 
found in the west, as “dramatic”. A loading us 
nuclear proliferation expert. Dr WlQiam Potter, 
warned that the find could be just the “tip of the 
iceberg" involving a growing hi wrings fa frugally 
traded Soviet nuclear material. Page 22 

Glaxo; Shares in Europe’s biggest drugs company 
ten I4p to S74p fallowing news of a patent action 
and cotmteremi over US sales of its nWr treat- 
ment, Zantac, which is the world’s biggest selling 
drug. Page 8 

Simpson denta* murder; Framer American 
Football star 0, J. Simpson pleaded not guilty to 
charges that he murdered his ex-wife and a malp 
friend of hers when he appeared hi court in Los 
Angeles. 

Menartol, Italy's largest domestic drugs group, 

said it Was tr ansferring aW mannfnrfnrtrig f mm 
Italy to Germany, revealing the move in full-page 
advertisements In the Italian {mass. Page 22 

Control of BtoniMfan to pass to trust 

The Duke of Marl- 
borough won the right to 
stop his son. the Mar- 
quess of Blandfard (left), 
taking control of the fam- 
ily estate of Blenheim 
when he succeeds to the 
■title. The legal ruling 
allows tiie Duke to hand 

responsibility for the 
estate, valued at more 
thanfaeem, ($i66m)to 
trustees. A statement 
said the aim of the legal action was not to disinherit 
Lord Blandford, who has been jailed for drug 
offences, but rather to protect the estate. 

C Hi i L um doidoo retreat on h — l t hmno a 

President Bill Clinton andDemocratic party leaders 
agreed an a new strategy for the US healthcare 
reform Mil that, the president insisted, would atm 
meet his basic goals, including universal medical 
insurance cover. Page 3 ; 

Apple Com pu ter reported hlgber-than-expected 
third-quarter earnings, up 16 per cent on a year ago 
at $2.19m,a8 sales (rffts hew Power Miy3htc»4 
products advanced strongly. P*«e 9 * 

Boost for < neglecto«F stuckmts: Gillian f ,- ' 

<UiH ph«r d ; new ITT? firinraflrm mcratary, is to famrii 
a drive to improve academic and vocational train- 
ing for students aged 16 years and over, a group she 
feels has been “txadmanally neglected”. Page 4 

Hereodeo-Beax is planning a shake-up of its 
loss-making European bus operations, involving job 
cuts and the merger of its inte rest s into an indepen- 
dent business unit Page 9 

M uraypma to visit S Korea: Tomiichi 
Murayama, Japan's left-wing prime minister, will j 

today visit Seoul to reassure Sooth Korea that It 
can stall count on his country’s support Page 3 

Italy cl ss ra budgot hunUs: The Berlusconi 
govmrment resolved one of the main issues holding 
up plans to find fresh, revenues for the 1995 Italian 
budget - a pardon for buildings constructed with- 
out proper planning permission. Page 2 

UK buflcHng costs to rise: Prices quoted by UK 
bufldtag groups bidding for contracts are forecast to 
rise by up to 10 per cent over the next year as they 
seek to recover porofU margins and pass an 
increased material and labour costs. Page 5 

Tobacco challenge: US tobacco manufacturers 
have won a court case allowing them to challenge a 
federal government claim that passive smoking - 
the inhalation of other people’s cigarette smoke - 
can kill- Page 3 

Wostinglioiise Boetrfc, struggling US 
conglomerate, reprateda fall in net income, to $75m 
from$84m, for the second quarter. Revenues were 
down freon $2.l5bn to J2Jlbn. 

Amazon sunmidsncci A consortium, led by US 
electronics company, and defence m a n u fac turer 
Raytheon has won a $Llbn contract to build a tech- 
nological surveillance system in the Amazon rain 
forest The system will aid environmental research 
and help combat drug trafficking. Page 3 

Companies In this Issue . . 


Abbey Naflonal 
ABod Dunbar 

Apple 

Affiytl 

Ascot 

Baring Tribune 

Bertelsmann 
Biotechnolbay Inva 
Black Arrow 
Buckingham bill 
Canal Plus 
Canning (W) 
Canute 

Commerzbank . 

CBknlerBan 

Delo Beetle 
EntapprissCM 
Equitable Ufa 
Eramet 


8 QKN 

22 GfcfcmMew . 
g Glaxo 

8 GreenfHar 
8 Halifax 
8 JupHn- IVndal 
0 ' London & Manchester 
a Low (Wm) 

8 ManarW 
Mercury 
Martvale Moore 
Novopharm 
8 Quean Anne's Gate 
8 Salisbury (J) 

8 Sycamore 
8 TT 

8 Tesco 

B UK Safety 
8' Warner Estate 

9 Westfaghouse 


For customer service and 
other general enquiries call: 

Frankfurt 
(69) 15685150 


Across Japan, Asahi breweries have 
moved to 24-hour shifts. Sales of swim- 
suits at Tokyo’s mein department stores 
are up by 50 per cent on a year ago. In 
the capital’s electrical goods district, 
AJrihabara, Tokyo residents are buying 
ah- conditioners faster than shopowners 
can stock them. 

The heat wave could not have crane at 
a better time for Japan’s economy. Just 
as the rising yen looked as If it might 
choke off the recovery, soaring tempera- 
tures have crane to the rescue. 

"Everything's selling," says Toshiba, 
the electrical goods group. "From our 


latest high-tech orange-crusher to tin 
home-made yoghurt-maker - all Hwmka 
to tin weather. People have even got a 
name for it - the divine wind.” 

Average dally temperatures were &6° 
Celsius hig he r than normal In the first 
20 days of July. Last week in Kyushu, 
the temperature Mt 39^0, the highest 
since 1979. Since last summer was a 
cool, damp squib, this year’s heat prefig- 
ures a strung recovery Jn personal con- 
sumption. 

A summer-tong increase of 2.4*C in the 
average dally temperature raises con- 
sumption by Y500hn ($5bn), or 0.7 per 
cent, according to the Tamalchi 
Research Institute. Applying the equa- 


tion to current conditions suggests a 
boost to spending this year of 03 per 
cent Tax cuts - which come into effect 
tfriK month - are also Uting dmwnH. 

Sales of beer have soared along with 
the mercury. Every 1°C Increase in tem- 
perature pushes up daOy beer consump- 
tion by about 900400 bottles, or JM per 
cent, accord ing to one brewer. Asahi, 
the country’s second largest brewer, said 
a 50 per cent increase In sales had forced 
It to move to around-the-clock produc- 
tion at six of Its right breweries. 

Less Intoxicating means of staying 
cool are aba enjoying a bumper season. 
Best Denkt the largest mass retailer of 
consumer electronics, said sales of air 


conditioners were at record levels. On 
the hottest day so far, July 3, It sold 
eight times as many as a year previ- 
ously. Toshiba reported air conditioner 
sales up 315 par cent. 

Department stores, hammered by 22 
consecutive mouths of falling sales, 
sense revival with the soaring tempera- 
tures. Sales iff swimsuits, hats and other 
hot-weather attire are up by 30 toSQ per 
cent at the Takashimaya chain. 

The warm weather has also come Just 
at the right time for the country's rice 
crop, according to a survey published 
yest e r da y. Bumper crops are expected 
for the first time far four years - 10 per 
cent higher than average. The hot, dry 


weather is not producing undiluted good 
news, however. Some parts of the 
try are experiencing severe water short- 
ages. The two southwestern Islands « 
Kyushu and Shikoku have sear tittia 
rain since the spring. In Takamatsu, on 
Shikoku, water supply has beat cut, to 
five hours a day, and some fa c to rie s 
have been forced to close. 

But even this has ben efici a l euon wn » 
side-effects. Sales of bottled water have 
soared, and the best selling raw product 
at the Seiyu department store is a sham- 
poo that requires no water to rinse. 

French racial violence returns. Page 2 

Seeking to allay Seoul's fears. Fig* 3 


Clarke welcomes output figures as GDP rises to its highest level since 1989 

UK recovery gains momentum 


By GBSart Tett, 

Economics Staff 

The strength of . Britain’s 
economic recovery increased in 
the second quarter of the year, In. 
spite of April’s tax rises, as total 
output rose above levels seen 
before the recent recession. 

With the manufacturing sector 
playing a key role to the growth, 
the data suggested that the UK 
economic recovery is becoming 
increasingly broad based. 

Gross domestic product grew 
| by a seasonally adjusted OB per 
cant in the three months to June, 
compared with the previous three 
months, the Central Statistical 
Office grid. 

Compared with the same 
period a year ago, second quarter 
output was 3.3 per cent higher. 
This was the fastest level of 
growth for more than five years 
and suggeris that the Treasur y' s 
forecast for 2.75 per cent (9)P 
growth this year will be comfort- 
ably readied. . - — 

. .. Mr Kenneth. Choke, tJK diary - 
cellar, welcomed the figures as 
. “the sort of recovery we want to 
see", not least because influHnn 
was running at relatively low lev- 
els, and unemployment faTHug 

‘T. intend to make sure we turn 
this favourable combination not 
into a boom which, goes bust, but 
into an upswing which lasts for 
many years," he. added. 

The output figures benefited 
from a strong prafonnance from 
North Sea oil and gas. which 
accounted for nearly a fifth of the 
overall annual GDP growth. Mea- 
sured without the erratic ail and 
gas sector, output rose 1X8 per 
emit in the three months to June, 


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Greenspan helps dollar to rise 





Commoits by sorior US financial 
officials yesterday helped the 
dollar rise to Its highest level in 
nearer three weeks, writes Philip 
Gawfth. 

Mr Alan Greetmom. riiairman 
of the US Fedgnal Reserve, 

. restated. Ws devtot a strong 
dollar was fa-the forere s ts of 

US economy. Hfa reaEqkfes ■»!-• 

lowed an ear per sfaffemaatfrom 
Hr Uoyd BaitseB, UFnwntf 
secretary, that he believed “very 
itnnjh” in a strong dollar. 


quarter an quarter, and 27 per 
cent, year an year. 

Nevertheless, the CSO pointed 
out that even excluding the 
North Sea contribution, output fa 
the last quarter was now above 
the previous record reached in 
1990, just before the recession. . 

In the City, analysts pointed 
out that faster growth might 
raise fears that the economy was 
running into capacity con- 
straints, and Aielltog inflationary 


The US currency closed in Lon- 
don at DM141955, nearly tiro 
pfennigs op on its Thursday 
dose of DML576, but off a high 
for.ihe day of DML6026. 

was only modestly up 
against the yen, finishing, at 
mm frgtofF»K«5.9BBferreay 
trade 

dispute, and Jgspm'g cur- 
account surplus, are impedi- 
ments to farther stajttgqpjBithe 
doBari ‘ V 

The week has beat dbaracter- 


pressures. Encouragement was 
taken from signs that the recov- 
ery was becoming more Industry 
driven, after being largely con- 
sumer driven last year - not least 
because trade figures earlier this 
week showed a steady growth in 
UK exports to countries outside 
tiie European Union. 

Mr Paul Turnbull of brokers 
Smith New Court said: “At the 
beginning of tbe year a lot of 
people were saying tax rises 


bed by the concerted efforts of 
US officials to persuade financial 
markets that they want a firmer 
dollar. The belief that the Clin- 
ton a dmin ist rat ion was, at best, 
indifferent to the fate of the cur- 
rency was rate factor acco untin g 
for its recent weakness. 

Analysts are reluctant to pre- 
dict that the dollar’s recovery 
will continue. Most argue 
action, in the form of higher 
interest rates, is also needed. 

Currencies, Page II 


would weaken growth. In fact it 
has accelerated.” 

The manufacturing; energy and 
utility industries grew strongly 
in the last quarto:. The CSO said 
provisional estimates indicate 
that the index of production, 
which covers these industries, 
would come in for the June quar- 
ter above the previously estab- 
lished trend of L3 per cent, quar- 
ter on quarter, well ahead of the 
rate of GDP growth. The trans- 



Kenneth Clarke: he welcomed 
the figures as “the sort of recov- 
ery we want to see* 

port, storage and telecommunica- 
tions sectors also saw strong 
growth, the CSO said. The retail, 
hotel and catering sector - the 
only areas where firm data is 
available - grew 0.6 per cent, 
quarter an quarter. 

The personal services sector, 
which indudes businesses Uke 
hairdressing, however, continues 
to look weak, the CSO said. 

Lex, Page 22 


US launches 
massive aid 
operation 
for Rwanda 
refugees 

By Jeremy Kahn 
In Washington 

President Bill Clinton yesterday 
announced that the US was 
mounting “an immediate and 
massive effort" to help end the 
refUgee crisis in Rwanda. 

The US was finalising plans to 
establish a military base of 
operations in Entebbe, Uganda, 
which would serve as the central 
co-ordinating and staging area 
for a round-the-clock airlift of 
medical supplies and humanitar- 
ian aide, Mr Clinton said. 

US military forces would also 
work to modify two existing air- 
strips in Zaire, at Goma and 
Bukavu, to accommodate flights 
of relief supplies. 

Mr Clinton said the US relief 
operation had two goals: to alle- 
viate the Rwandan refugees’ suf- 
fering as soon as possible, and 
then to secure conditions to 
I enable them to return to 
Rwanda. 

Between Im and 2m refugees, 
mostly members of the Hutu 
tribe, have fled to Zaire In the 
last weak to escape the advanc- 
ing Rwanda Patriotic Front, dom- 
inated tor Tutsis. The RPF has 
just taken power In Rwanda after 
months of civil war in which the 
Hutu government slaughtered 
thousands of Tutsis. 

The US army will move imme- 
diately to secure a safe water 
supply for more than lm refugees 
living in the camp at Goma. 

Continued an Page 22 


Mercury loses court battle to 
change BT 9 s charging regime 


By Andrew Adonta 

Mercury, the largest competitor 
to British Telecommunications , 
yesterday lost its legal battle 
with the industry watchdog 
Oftel, to force through a more 
favourable regulatory regime. 

In a ruling with implications 
for the wider system of utility 
regulation, the Court of Appeal 
dismissed Mercury’s case without 
even hearing the substantive 
points at issue. 

By a 2:1 majority, the court 
supported Oftel’a claim that it 
was hot appropriate for it to 
enter into the dispute between 
the regulator and Mercury over 
the regime under which BT 
Charges competitors , for the use 
of its network. 

However, Mercury was given 
leave to appeal to the House of 


The refusal by the Court of Appeal 
yesterday to Interfere In the 
dispute between Mercury and 
Oftol, the telecommunications 
regulator, wtU have ramMcatkMS 
for wider tsl o co mi competition In 
the UK end for the rel at ion shi p 
of utility regulators wftfi the 
oourta Report, Rage 5. 

Lends, and there were strong 
indications yesterday that it 
would do so. 

Mam Try had sought a declara- 
tory rating from the court on tbe 
inte rp re ta tion of BTs licence In 
order to preempt a decision on 
the issue by Mr Don Crnick- 
shank. Offal's director-general. 

Mercury’s aim was to change 
the basis on which it pays far use 
of BT's network from a per- 
minute system to a peak-capacity 


system more favourable to com- 
petitors. 

It was tiie first time a competi- 
tor to n™ of the privatised utili- 
ties had sought to use the courts 
to influence the regulatory pro- 
cess. Lord Justice Dillon, siding 
with Offal, said the issue was 
-“firmly entrusted" to Mr Cruick- 
shank and not a matter for the 
courts to decide. 

Ms Maev Sullivan, Mercury’s 
director of strategy, said: “The 
real issue - the price competitors 
must pay to deliver their calls to 
BT’s customers - has yet to be 
tested by the courts." 

Offal welcomed the judgment, 
ntrfi ggiri it remained “frilly confi- 
dent" that It had discretion to 
interpret BT’s licence without 

Continued on Page 22 
MPa’ plans for BT, Page 5 


r esting in Jj 

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CONTENTS 


MmdandK 
UK Nam — 
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Ux 

testa Pag#- 


Latara 

ManlnBwNam: 

MConponfas- 

Mariidh 

FT-SEAcUrin - 


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Eqtlly Cptons 

10 

10 


13 

LSE Darings.. 

12 


Managed Fmta . 


PW) S index 6&4 (621) 

Tokyo ctoMYBSAB 


Momy Mortem 11 

Racanttaaon HI 

Stwa blortnadon 2021 

WsridCoamndHra .10 

VWSbaM 18.10 

Bniwi ,18,1V 


Thcre'i no qncsioa about tbe current potential * 
of the Japanese acockmadoct. Interest late! axe at record 
lows and could decline still further. And falling 
corporate profits are generally suppressing share 
prices, creating a wealth of attractive investment 
opportunities. 

However, in such conditions, the ability to 
kLennijr the correct nocks is all die more important. 

Ac Fidelity, wc believe the only way an 
investment manager can oooatendy achaftfe this is by 
first-hand fidelity Japan SobQct Companies 

Fund, top fond In its sector since launch 1 , 
de monstr ates the mcccn of this approach. 

Vi a strategy behind which we put consdcuMc 
resource*. For example, oar Japanese team of 17 fund 
m a nagwt and analysts hit year made no lew than 7,600 
visits and contacts do companies nationwide - seeking 
out undervalued and htdo-Jtaown stocks. 


In addition, as the first foreign investment 
company to open a Tokyo office in 1969. we’re able 
to support char first-hand research with a local 

nrn l iumvIiiiH rf rfap iyh^ 

So make a well-informed decision to find out 
more about fidehry Japan Smaller Companies Fund. 
Another successful perionne i from the world’s l ar ge s t 
investment iminynw it organisation. 

If you would like more iafixmatioa, call us. free 
of charge, from any of the countries below. If yon 
live ebcwhoc. please use die UK number or post or 

fcx thc coupon. 


Batata 800574 

France 05908219 

Nefheriands M 0226443 
Spain 900984478 


Mfltaa 078117589 
Gtonav OH0818208.i 

tew* 06011083 T 
HongKong 8481000 ' j?" 


IK (for otto countries) 44 732 7773777 


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Wtera>RtsOft8iiwdmai&1W»i*n»l«idg WL3l>}1taMNraStUlieii*IBW5P|1^ •_ 

©THE FINANCIAL TIMES. LIMITED 1994 No 32.426 Week No 29 LOMPOM ■ PARIS ■ FRANKFURT- « WEW VOBK - TOKYO 


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FINANCIAL TIMES WEEKEND JULY 53/JULY 24 1994 


NEWS: INTERNATIONAL 


Legislation to deregulate Italy’s labour market allows for temporary jobs 


Rome budget revenue hurdle overcome 


By Robert Graham in Rome 


The Berlusconi government 
yesterday resolved one of the 
main issues holding up plans 
to find fresh revenues for the 
1995 budget - a pardon for 
buildings constructed without 
proper planning permission. 

At the same time the govern- 
ment has unveiled legislation 
for deregulating Italy's rigid 
labour market that introduces 
for the first time the principle 
of temporary jobs. 

The cabinet failed to agree 
on the scope of the pardon on 


US and 
Russia 
disagree 
on Serbs 


Mr William Perry, US defence 
secretary, yesterday disputed 
Russia’s view that the Bosnian 
Serbs had responded positively 
to the international peace plan 
for Bosnia, Reuter reports 
from Zagreb. 

Russia indicated it believed 
the Serbs had not rejected the 
proposals for the division of 
Bosnia. However. Mr Perry 
said yesterday: w It was not an 
acceptance of the plan and 
that is what the contact gronp 
had asked for." Russian offi- 
cials said the Serbs’ demand 
for more talks was “rather 
positive” and “not devoid of 
logic". 

“We considered it not a posi- 
tive answer bnt a disappoint- 
ing answer and it is going to 
greatly complicate the path 
ahead." Mr Perry said yester- 
day after talks with Nato and 
UN peacekeeping commanders 
on military steps to impose the 
plan. 

A “contact gronp" compris- 
ing the US, France, Britain. 
Germany and Russia has 
drafted a plan to spilt Bosnia 
almost evenly between the 
Serbs and a Moslem-Croat alli- 


ance. 

"We would hope, sincerely 
hope, that between now and 
the July 30 meeting [of contact 
gronp foreign ministers] that 
the Bosnian Serbs will recon- 
sider their answer and give 
them something more positive 
to work on at that meeting." 

Bosnian Prime Minister 
Haris Siulajzdic said the time 
for talks was over now that 
the Serbs had rejected the 
plan. Asked if there was any 
way his side would negotiate 
with the Serbs over borders, 
Mr Silajdzic said: “The answer 
is no." 

Mr Perry was completing a 
week-long trip through south- 
eastern Europe to assess mili- 
tary options in Bosnia after 
the Serb response. 

“It was very important for 
me to get an assessment from 
them on the alternatives avail- 
able at this stage. . . And it’s 
important to understand the 
implications of going down 
one road or going down the 
other," Mr Perry said. 

The gronp evaluated steps 
both in case of “the optimistic 
outcome" in which the Bos- 
nian Serbs embraced the plan 
as is. and the alternative of a 
“negative reaction - the peace 
plan not being implemented" 
by Serbs, he said. 

The Serbs did not reject the 
peace plan outright but 
attached conditions which 
would require substantial 
renegotiations. The Moslems 
and Croats have accepted bnt 
refuse any further bargaining. 

Mr Perry’s talks centred on 
a possible increase in interna- 
tional military pressure on 
Serbs to accept the peace plan 
- and how to implement any 
final peace. 

The contact group has 
warned Serbs that interna- 
tional sanctions could be tight- 1 
ened against Serbia and the 
□se of allied air power 
increased. 


THE FINANCIAL TIMES 


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Thursday night because of 
objections from the Northern 
"League that it would afford a 
blanket amnesty to many 
kinds of illicit construction and 
property speculation. As a 
result the matter was pushed 
on the agenda of yesterday's 
cabinet session. 

The pardon, which will allow 
the proper registration of 
buildings and conversions, is 
expected to raise L5,400bn 
f£2.2bn) by the end of 1995. A 
further L12,000bn is expected 
to go to the city and municipal 
administrations concerned. It 


is estimated that up to 3m fam- 
ilies could be affected: but in 
the previous such pardon in 
the mid-1980s, less than 10 per 
cent of the 8m requests were 
able to complete the required 
procedures. 

The measure runs alongside 
an amnesty on a back-log of 
3.2m tax assessment cases 
expected to generate most of 
the Ll5,000hn in new revenues 
for the 1995 budget The cabi- 
net confirmed it would aim to 
cut the 1994 budget deficit of 
Ll54.00Dbn to Ll38,6Q0bn next 
year. 


The cabinet also confirmed 
that key decisions on spending 
cuts in pensions would not be 
taken until alter the summer 
recess. Confindustria, the 
industrialists confederation, 
while applauding the govern- 
ment's commitment to reduc- 
ing the public sector deficit 
expressed disappointment at 
the postponement. 

Confindustria also voiced 
reservations about the scope of 
measures approved to regulate 
the labour market The mea- 
sures introduce the principle of 
temporary employment and 


apprentice wages at below min- 
imum rates. But since they 
were first discussed a month 
ago with the unions, they have 
been considerably modified. 

The unions have managed to 
prevent a free hire and fire pol- 
icy. Instead, temporary 
employment will be circum- 
scribed by strict rules. For 
instance, employers can only 
resort to temporary employ- 
ment where jobs are being 
added to a company payroll - 
not in substitution for existing 
jobs or where jobs have been 
shed. There are also limits on 


Gonzalez tries to revive party’s hopes 


Will it be too little, too late for Spam’s ruling Socialists? Tom Burns reports 


M r Felipe Goozdlez. leader of 
Spain's ruling Socialists, yes- 
terday set about reviving his 
party's political fortunes and to rein- 
force the moderate wing as the domi- 
nant force in Spanish politics. 

Mr Gonzalez. Socialist leader for 
almost 20 years and prime minister for 
nearly 12, opened a gathering of party 
leaders to address the spate of corrup- 
tion scandals, the deep economic reces- 
sion and the bitter divisions within the 
leadership that together ted to a humili- 
ating defeat for the party in last 
month’s European parliament elections. 

The prime minister will tell his fed- 
eral committee that despite the govern- 
ment's dwindling credibility, he intends 
to stick to his current policies of eco- 
nomic stringency and to serve out his 
full term until 1937. 

He will also continue to seek the sup- 
port of the Catalan nationalists, whose 
votes in parliament ensure an outright 
majority for Mr Gonzalez. 

While there is optimism, mainly 
among the moderates, that Mr Gonzalez 
can revive the party’s standing, some 
believe he is doing too little too late. 

Mr Joaquin Almiinia. the party’s par- 
liamentary spokesman, said the meet- 
ing of the Socialists’ 2 12 -strong federal 
committee would round off a slow pro- 
cess of renewal that began when Mr 
Gonzalez narrowly won a fourth term 
in general elections a year ago. This 
was reinforced in March, said Mr Almu- 
nia, when the moderates emerged as a 
clear majority at the party’s first 
national congress since 1990. 

Mr Carlos Solchaga, economy minis- 
ter between 1985 and 1993. said: “1 think 
Mr Gonzalez should change the govern- 
ment but it is difficult to see how he 
can da that." Mr Solchaga resigned as 
parliamentary spokesman in May when 
the former governor of the bank of 
Spain, whom he had appointed, admit- 
ted tax evasion. 

The prime minister’s unswerving 
stand on economic policy is a victory 


for the party's moderates, the so-called 
renewal faction of moderates, of which 
Mr Almunia is the party's chief propo- 
nent, and a defeat for the left of the 
party grouped around its long-time dep- 
uty leader, Mr Alfonso Guerra. Mr 
Guerra was deputy prime minis ter 
between 1982 and 1991. 


Sticking to current policies means 
restrictive budgets to reduce the deficit, 
instead of sustained public spending as 
the left would like. Courting the Cata- 
lans. who are politically on the centre- 
right and embrace the free market, 
means rejecting the Co mmunis t party- 
led United Left, who are viewed by the 



A protester demands “water, solidarity and justice” as he stands in a Madrid 
fountain yesterday. Thousands of fanners were demonstrating in favour of trans- 
fer of water to drought-stricken regions. «* 


“Guerristas" as the natural allies of the 
Socialist party. 

“The March congress made it dear 
that Gonzdlez would adopt our ideas," 
said Mr Almunia. “But renewal got held 
up by the corruption scandals, by 
regional party congresses, where the 
Guerristas tried to fight back, and by 
the European elections.” 

Two meetings this month, chaired by 
Mr Gonzalez, of the party's 36-member 
executive commission set the stage for 
the effective takeover of the renewal 
faction of modernisers at yesterday's 
widened guttering of the Socialist lead- 
ership. 

Mr Almunia and his friends will for- 
mally take over key positions in the 
party hierarchy and, crucially, the 
renewal wing will wrest control from 
the Guerristas on the commitee that 
vets the party’s electoral candidates. 

In the post-mortem delivered to the 
executive committee on the European 
elections, Mr Gonzalez concluded that 
more damage had been done to the 
party by its erstwhile centrist support- 
ers who had abstained or voted conser- 
vative, than by those who had switched 
their vote to the United Left ticket 

The message is to win back the centre 
vote as the economy recovers with a 
mix of social democracy and market-ori- 
ented orthodoxy. Some doubt this is 
possible, arguing that Mr Gonzalez has 
still to deal firmly with the left in his 
party. 

“When you have retreated back 
through the credibility threshold, and 
we have unfortunately done so. it is 
difficult to walk through it again and 
restore confidence," said Mr Solchaga. 
“There is a lot of ‘Guemsmo’ that has 
to be brushed away." 

Another party member, within the 
renewal faction, put it more bluntly: 
“What is important is to get the Guer- 
ristas out before we lose the next elec- 
tions, as we assuredly wifi. That way 
they won’t be around to take control of 
the party when we’re out of power.” 


Ukraine decree to 


Latvia relents over 


crack down on crime curbs on citizenship 


By J21 Barshay in Kiev 


Mr Leonid Kuchina, the new Ukrainian 
president, signed a tough anti-crime 
decree as his first act in office, local 
newspapers reported yesterday. 

Mr Kuchma’s decree, signed on 
Thursday, was nearly identical to Rus- 
sian President Boris Yeltsin’s anti- 
crime decree last month. In Russia, the 
decree has raised concerns that new 
democratic freedoms are threatened, 
and that the decree could usher in a 
return of the old totalitarian. KGB-con- 
trolled state. 

Mr Kuchma , who promised to crack 
down on government and business 
crime in his election campaign, said the 
broad expansion of police powers was 
necessary to “strengthen law and order 
in connection with the extraordinary, 
complicated criminal situation”. 

The Ukrainian decree permits police 
to hold suspected criminals for up to 30 
days. Hotels, dormitories and other 
places where the government believes 
cr iminals gather may be raided without 
search warrants. Police and Security 
Service agents are granted the right to 
seize commercial documents from pri- 
vate companies. Half of the proceeds of 


raids on illegally-obtained property 
would go into law enforcement budgets. 

Crime has risen sharply in Ukraine in 
recent years. In the first six months of 
1994 alone, authorities say there have 
been 1.500 murders and 1,065 drug raids 
yielding about 11 tonnes of narcotics. 

A US FBI official In Kiev earlier this 
month, voiced concern that Ukraine 
was becoming a transit zone from Asia 
to western Europe in the international 
drugs trade. He noted that Russian 
criminal groups exerted a strong influ- 
ence in Ukraine and often colluded with 
smaller Ukrainian rackets where profits 
were to be made. 

For Mr Kuchma, the decree serves to 
launch his presidency on a strong note 
and to make good on his popular anti- 
corruption campaign promise. 

In a further anti-crime move Mr 
Kuchma replaced the head of the Minis - 
try of Internal Affairs with a 46-year-old 
organised crime and corruption special- 
ist who has 22 years of experience in 
the Soviet KGB, Observers are asking if 
this is an indirect attempt to merge the 
police and security ministries into a 
single, powerful authority, as Mr Yelt- 
sin unsuccessfully tried to accomplish 
in Russia. 


By Leyta Boulton in Moscow 


! Latvia, the Baltic republic, yesterday 
bowed to international pressure to give 
1 up controversial quotas making it 
impossible for many of its non-Latvian 
residents to gain citizenship of the 
newly-independent country. 

Latvia’s Russian-speaking population 
increased sharply after the republic 
was annexed by Stalin in 1940. Last 
month, the government introduced dra- 
conian quotas for the naturalisation of 
non-Latvians born outside Latvia, in a 
long-delayed citizenship law. 

The aim was to stop Latvians being 
outnumbered or threatened by non-Lat- 
vians, who today make up just under 
hair of the population, as opposed to a 
quarter before the annexation. 

But international organisations such 
as the Council of Europe, which Latvia 
wants to join as soon as possible, said 
Latvia bad more democratic means at 
its disposal to protect its national iden- 
tity and security. 

Following tbe Latvian president’s 
request that parliament reexamine the 
citizenship law, a new version passed 
yesterday is now likely to satisfy Lat- 
via's critics in tbe west. 


The law still requires that citizens 
know Latvian (a language which many 
Soviet-era immigrants never learned). 
But instead of imposing quotas on a 
whole category of the population, the 
law seeks to prevent “disloyal" individ- 
uals becoming citizens by banning the 
naturalisation of any residents previ- 
ously involved with specific organisa- 
tions hostile to Latvia’s drive for inde- 
pendence. These include such 
organisations as the Union of Veterans 
of the Armed Forces of the USSR, as 
well as Communist groups or repres- 
sive bodies such as tbe KGB. 

It also for the first time introduces a 
one-year deadline for Latvian officials, 
who have often been accused of arbi- 
trariness and foot-dragging in the past, 
to process naturalisation applications. 
The new law is likely not only to speed 
Latvia’s reintegration with the west, 
bnt to improve relations with Russia, 
which is doe to complete a withdrawal 
of its troops from Latvia by the end of 
August. Possibly in response to domes- 
tic accusations that It was too “soft" on 
Latvia, Russia has suspended troop 
withdrawal from Estonia until the 
rights of the Russian-speaking minor- 
ity there are assured. 


Fears of summer violence in Paris 


Hot weather brings threat of revived racial attacks, writes Alice Rawsthom 


T he insalubrious suburbs 
of France’s cities have 
long been prey to racial 
violence but last week’s trag- 
edy at Dreux, one of the poor- 
est outer suburbs of Paris, sent 
shock waves around the coun- 
try. Five armed youths drove 
into a ghetto area and fired 
indiscriminately at a group of 
North Africans, injuring 10 of 
them. 

Dreux is already notorious 
for its high crime rate and 
social problems. Yet last 
week's violence, which ended 
with one of the armed youths 
being shot dead by the police, 
has fuelled fears that France Is 
set for another summer of dis- 
content in les sups, its deprived 
suburban ghettoes. 

"The Dreux incident may 
just be the beginning." says Ms 
Sophie Body-Gendrot, profes- 
sor of political science at the 


Sorboune in Paris and an 
expert on urban problems. 
"The situation in some urban 
areas is now at breaking 
point" 

Fresh violence would be a 
setback for the authorities, 
who have in recent years made 
progress in reducing unrest in 

les zaps. 

Summers have traditionally 
been difficult periods for 
France's deprived urban areas. 
"It's the time of year when ten- 
sion tends to be at its highest" 
says Mr Henri Rey, a research 
fellow specialising in urban 
issues at L'Institut d "Etudes 
Politiques in Paris. "It's so hot. 
particularly In southern cities 
like Marseilles, that people 
open their windows at night so 
they're left fully exposed to the 
noise and promiscuity of living 
in cramped conditions." 

The worst summer in recent 


times was in 1981, when Les 
Minguettes, one of the most 
depressed suburbs of Lyons, 
erupted in a vicious race riot 
that triggered riots in other 
cities, notably Paris and Mar- 
seilles. 

Successive governments and 
local authorities across France 
have since made heavy invest- 
ments in trying to improve 
conditions. 


S ome of the old buildings, 
many flung up in the 
early 1960s to house 
North African immigrants 
entering France from its old 
colonies in large numbers, 
have since been renovated or 
replaced. There have also been 
efforts to create youth projects 
such as training centres and 
special summer initiatives 
Such as extra sports facilities 
and seaside trips to keep poten- 


tial troublemakers off the 
streets. 

“These initiatives have had a 
positive effect," says Mr Rey. 
"There's still appalling poverty 
and violence in les zups. But 
the situation has improved 
since the early 1980s. People 
then thought that the French 
ghettoes would eventually 
become as bad as those of the 
United States. That hasn’t hap- 
pened and there seems to have 
been less violence in recent 
years." 

However there is now con- 
cern that racial tension is ris- 
ing again. The French reces- 
sion has made life even more 
difficult in les sups, particu- 
larly for young people. The 
overall level of unemployment 
in Dreux is estimated at 15 per 
cent (against a national aver- 
age of 12.7 per cent), but youth 
workers estimate that it is as 


high as 70 per cent for 
school-leavers. 

Further, the pressure on gov- 
ernment budgets has forced 
tbe Ballad ur administration to 
cut public expenditure in many 
areas, including urban pro- 
grammes. Local finances are 
also under strain as many 
authorities struggle to repay 
the debts amassed in the 1980s. 

As a result there is less 
money available for urban 
renewal initiatives and youth 
summer schemes. “It's impossi- 
ble to assess the precise impact 
of the cuts, but conditions in 
some areas have deteriorated 
and one gets the impression 
that there's less for the kids to 
do this summer," says Ms 
Body-Gendrot "Is that likely to 
undo some of the progress of 
recent years and to lead to 
more violence? Yes. I'm very’ 
much afraid that It wilL" 



INTERNATIONAL NEWS DIGEST 


Yeltsin makes 


the number of temporary 
employees per company - 10 
per cent of the workforce in 
companies with up to 500 
employees - as well as a maxi- 
mum time span of 12 months. 

The government believes up 
to 200,000 jobs can be created 
through the new legislation. 
The unions are more sceptical. 
Much depends on how addi- 
tional incentives for job hiring 
in southern Italy, the worst 
area for jobless, are applied. 
The draft law now goes to par- 
liament and could be altered 
substantially there. 


concessions on 


privatisation 


Vote on German troops 


The German parliament voted yesterday to allow German 
troops to fight outside the Nato region, by 424 votes to 48. Tbe 
decision, which was necessary to ratify the constitutional 
court ruling on German troops’ role in the former Yugoslavia, 
was opposed by the Greens and former Communists. Mr Rud- 
olf Scharping. of the opposition Social Democratic party, 
warned that Germany should not always fight when called on 
by its allies, and that German development programmes 
should not be replaced by overseas military action. Defence 
Minis ter Mr Volker Rohe said the high court decision "isn’t a 
marching order” and denied that it would lead to Germany 
sending troops to every trouble spot Mr Klaus KinkeL foreign 
minister and leader of the Free Democratic party, accused the 
SPD of retreating into a false pacifism. “The lesson to be 
drawn from the Nazi era is that violence can often only be 
defeated by counter-violence," Mr Kinkel said. AP, Bom 


Seoul watches Hyundai strike 


The South Korean government has decided not to intervene 
immediately in a strike at Hyundai Heavy Industries’ ship- 
yard, which has emerged as the country's biggest industrial 
dispute this year. The month-long strike at HHI, which has 
resulted in sales losses of $240m (£155m), stands in sharp 
contrast to the rapid settlement of other industrial disputes 
this year as labour militancy wanes in South Korea. The HHI 
workers are demanding a 12.6 per cent pay rise and an 
increase In other benefits, which would boost wage costs by 
SL3bn for its 22.000 employees, according to the company. HHI 
workers are occupying shipyard facilities after the company 
announced a lock-out earlier this week. Officials warn, how- 
ever. that the government could order the ejection of the 
workers from the shipyard if the strike threatens to spread to 
other companies in the Hyundai group, Korea’s largest indus- 
trial conglomerate. John Burton. Seoul 


Treuhand deal on Eko Stahl 


The Treuhand privatisation agency yesterday agreed to pro- 
vide a fresh financing package for Eko Stahl, eastern Ger- 
many’s loss-making steel milt, until the end of the year. 
However Mr Wolf SchOde, spokesman for the agency, con- 
firmed it was hoping to sell the mill in the autumn, after Riva, 
the privately-owned Italian steel manufacturer, pulled out of a 
contract to buy Eko Stahl in May. Mr SchOde said Eko Stahl 
would receive DM50m (£20.6m) to cover losses, adding that the 
European Commission had already been told and he was "not 
pessimistic” that the grant would be accepted by Brussels. Hie 
Commission last month started proceedings concerning the 
legality of state aid to Eko Stahl. Judy Dempsey, Berlin 


UN backs forces for Georgia 


Hie UN Security Council has given its blessing to a controver- 
sial Russian peacekeeping force in Georgia on condition that 
UN military officers monitor tbe operation. This is aimed at 
enforcing a truce between tbe former Soviet republic and its 
dissident province of Abkhazia. Hie US. Britain and France 
joined Russia in sponsoring the UN resolution welcoming the 
intervention by 3.000 Russian troops. Its adoption was facili- 
tated by a change of heart by Mr Edouard Shevardnadze, who 
now has asked for Moscow's help. Troops from other former 
Soviet republics may join the Russian operation. Michael 
Littlejohns, New York 


Stoppage hits France flights 


Dozens of flights were cancelled and hundreds of passengers 
stranded at airports yesterday as air traffic controllers in the 
Aix-en-Provence region of southern France began a three-day 
strike. The stoppage, which comes on one of the busiest 
weekends of the year for air travel at the start of tbe summer 
holiday season, involves some 100 controllers at the airports in 
Marseilles, Nice, Montpellier and Corsica. The strike was 
called following a breakdown in talks over pay and working 
conditions. Only 100 (lights left Nice out of the usual 250. Some 
1,000 passengers were stranded in Corsica because of cancella- 
tions and delays. Flights to and from airports outside the 
region, were also disrupted because the Aix-en-Provence con- 
trollers cover the busy routes from northern Europe to North , 
Africa, Spain and the Balearic Islands. Alice Rawsthom, Paris \ 


ECONOMIC WATCH 


French recovery accelerating 


Industrie production 

Yaar on ywr % change. Smsonely afl. 


Ai 1993 
Soumc Datastmam 


r Further evidence emerged 

r-rance yesterday of an acceleration 

industrial production hi France’s economic recov- 

Ysar on ywrM change. Smonely ad|. ery With a 2.2 per cent 

4 .... . — . increase in manufacturing 

3 .. output in May compared with 

April and of a 23.1 per cent 
2 "■* « ■■ Increase in the number of 

1 — — ~ — ■ U- housing starts in the first half 

0 of 1994 against the same 

.■BMW ■ period of 1993. Mr Edmond 

BBWa _ Alphandery, economy minis- 

2 ■■■I ter ' r «ently forecast 1 per 

.Q ._ au — cent growth for the second 

-4 ■ quarter of 1994, against 0-5 

_5 \ i i per cent for the first quarter, 

jus 1993 94 May and predicted that France 

Source: Oatatmam would achieve 2 per cent 

growth in 1994 rather than 
the original official forecast of 1.4 per cent. Hie 12 per cent 
Increase in May’s manufacturing output contributed to an 
overall 0.3 per cent rise In industrial production during the 
month, according to Insee, the state statistics institute. Mean- 
while, the 23.1 per cent rise in first half housing starts, to a 
total of 153.600. according to the Housing Ministry, boded well 
for the construction and property sectors, both been badly 
affected by the recession. Alice Rawsthom. Paris 

■ Germany recorded a current account deficit of DMBJbn 
<£2.5bn) In May, wider than the revised DM1 Abn deficit in 
April, the Federal Statistics Office said. April's deficit was 
originally estimated at DMi^bn Germany's trade surplus con- 
tracted to DMSbn in May. from a revised surplus of DM6.?bn to 
April and DM5bn a year earlier. In the five months to May. the 
current account deficit was DMl5.9bo, compared with 
DM14.2bn a year earlier, and a trade surplus or DM29on 
<DM15.7bn). AFX, Wiesbaden 

■ China's foreign exchange reserves rose by $1.7bn to t 3 ® 3 t0 
$2Ubn, the official China Daily reported. Reserve assets grew 
by $l.7bn in 1993. the report said, citing figures from to® S* 316 
Administration of Exchange Control. AP. Beijing 




President Boris Yeltsin yesterday signed a decree ordering the 
continuation of Russia's privatisation programme bnt made 
unspecified concessions to deputies who had blocked the 
plans. Tbe decree dears the way for a new stage of privatisa- 
tion in which, companies will be auctioned for cash following 
the completion of the sale of up to 70 per cent of manufactur- 
ing industry for vouchers distributed free to every Russian 
wtiTfrn But Mr Vyacheslav Kostikov, the president's spokes- 
man. said the decree, necessitated by parliament's failure to 
adopt the second stage of privatisation as ordinary legislation, 
took into account some of the deputies' objections. Although 
he gave no details, the changes are likely to give more leeway 
to local authorities and company employees in deciding how 
companies are privatised. The decree is also likely to drop 
proposals for the privatisation of land. After outright rejection 
of the plan for “post-voucher" privatisation at the start of this 
mnnth, parliamen t this week failed to muster a quorum in 
support of the compromise version because many deputies had ] 
already gone on holiday. Lcyla Boulton, Moscow ' 


iH ; ’ * 

]|i * 




* ii i 


s i 




FINANCIAL TIMES WEEJCEND JULY 23/JTJLY 24 1 994 


3 


NEWS: INTERNATIONAL 


President denies new strategy 
on bill constitutes a retreat. 

Clinton team 
agrees stand 
on healthcare 


By Jure* Martin 
hi Washington 

President Bill Clinton and 
Democratic party leaders yes- 
terday agreed on a new strat- 
egy for the healthcare reform 
bill that would, the president 
insisted, still meet his basic 
goals, including universal med- 
ical insurance cover. 

Only the most general out- 
lines of the Democrats’ think- 
ing were immediately avail- 
able. But Senator George 
Mitchell, the majority leader, 
said: "Our plans will be less 
bureaucratic, more voluntary 
and will be phased in over a 
longer period". 

Mr Clinton argued that the 
new approach, outlined after a 
White House session on Thurs- 
day nigh t , did not constitute a 
retreat as there was agreement 
on the overriding objectives. 
These he defined as universal 
cover, quality and choice of 
medical care, nmphagia on pre- 
ventative and primary treat- 
ment, and cost contain- 
ment. 

Hie did not mention the con- 
troversial issue of requiring 
employers to finance the ban's 
share of the insurance premi- 
ums of their workforces, but 
said be bad long been flexib le 
on the details. 

With the stage now set for 
the climactic debate in Con- 
gress, "now Is the time for 


those with a better idea to 
come forward", ha added. 

Essentially, the president, 
Mr Mitchell, Congressmen Tam 
Foley, Speaker of the' House, 
and Richard Gephardt, its 
majority leader, were con- 
fronted with a legislative 


Hone of the bills reported 
out by various congressional 
committees commands major- 
ity support, nor does the mod- 
est alternative reform plan 
offered by the Republicans. 

To deal with thin, Mr Mitch- 
ell said he hoped to have a new 
draft bill reedy to take to the 
floor of the Senate by the end 
of next week. It will seek to 
reconcile the large differences 
in bills already reported out by 
the Senate ftnan^ pud h ealt h 
committees. 

The House has scheduled a 
vote in the week beginning 
August 8, just before the sum- 
mer recess. 

Mr Clinton hnn been Writing 
at flexibility all week, if not all 

wnnfli. Having ftinaafrpnaH tO 

veto any bill that did not con- 
tain universal cover, he told 
state governors on Wednesday 
that 95 per cent coverage could 
be tantamount to universal 
cover. But on Thursday he 
took a tougher line and contin- 
ued to insist that the only 
alternative to the so-called 
employer mandates was higher 
taxation 


Japan seeks to allay Seoul’s fears 


By wnbm Dawkins m Tokyo 

Mr Tomiichi Murayama, 
Japan's new left-wing prime 
minister, will today visit Seoul 
to try to reassure South Korea 
that tt stiH count an his 
country’s support 
Mr Murayama’s Social Demo- 
cratic party has closer Hnkfl to 
North Korea the* any other 

political group in the demo- 
cratic world and formally 
refuses to recognise South 
Korea as a sovereign state. 

His tacit recognition of 
South Korea marks the latest 
step in the SDP leadership's 


abandonment of most of its tra- 
ditional policies, in evolving 
over the past year from a party 
of opposition to one of govern- 
ment. 

That process came to a di- 
max last month, when Mr 
Murayama became Japan's 
first Socialist prime minister 
for 47 years. 

The South Korean visit, the 
first since the new government 
took power at the end of June, 
is the opening stage of a tour 
cf five south-east Asian coun- 
tries over the next week. 

Mr Murayama will be accom- 
panied by Foreign- Minister 


Yohei Kano, president of the 
conservative Liberal Demo- 
cratic party which is the domi- 
nant party in the three-mem- 
ber coalition. The trip jnctoffcfi 
Vietnam - the first official 
visit there by a Japanese prime 
minister fra- 21 years - Singa- 
pore ami the Philippines. 

Mr Murayama would explain 
to South Korean President Kxm 
Young Sam the complexifies of 
Japan's new coaliti o n govern- 
ment and would seek to 
assuage fears about his new 
regime, a Japanese Foreign 
Min is t r y nffirSai sa i d . 

Japan’B Asian policies were 


unchanged and Tokyo would 
continue to press far a negoti- 
ated settlement of the dispute 
over whether or not North 
Korea was illicitly making 
nuclear weapons, the official 

aridfiri, 

Mr Murayama will continue 
Japan's policy of apologising 

far its war record In mainland 
Asia and is expected to tell 
President Kim of a plan to 
spend YlQObn (£65&59m) over 
the next decade on academic 
studies of war history and 
youth exchange. 

Mr Mnrayama's Asian visit 
comes as the yen’s recent 


strength has increased pres- 
sure on Japanese companies to 
shift more production capacity 
to cheap locations in neigh- 
bouring countries. 

Japanese investments in the 
rest of Asia rose three-fold in 
the seven years to 1993, so that 
the region’s share of Japanese 
foreign investment win reach 
37.5 per cent this year, accord- 
ing to government figures. 
This has been accompanied by 
a sharp growth in trade, so 
that Japan's trade surplus with 
Asia last year surpassed the 
gap with the US for the first 
time. 


LDP changes mind over N-arms rally 


US court win for 
tobacco Industry 


By Richard Tomkins in New 
York 

US tobacco manufacturers 
have won a court case allowing 
them to challenge a federal 
government claim that passive 
smoking - the inhalation of 
other people's cigarette smoke 
- can kill 

If the manufacturers’ lawsuit 
succeeds, it wifi, remove one of 
the most important founda- 
tions of the anti-smoking 
movement in the US. Public 
and private sectors alike have 
used the government’s declara- 
tion as the basis for wide- 
spread smoking bans in build- 
ings and public places. 

The government made its 
assertion in January last year 
when the Environmental Pro- 
tectum Agency iBsued a report 
titled Respiratory Health 
Effects of Passive Smoking: 
Lung Cancer and Other Disor- 
ders. 

The report said passive 
fanoktog increased the risk of 
illnesses such as lung cancer 
and it was a contributory 
cause of asthma, pneumonia 
and bronchitis in children. Its 
most important conclusion was 
that passive smoking killed 
3,000 non-smokers a year, and 


it rlacaifipri apffmd-hand smoke 

as a class A carcinogen. 

However, many smokers say 
the JEPA was determined to 
show passive smoking killed 
and manipulated the evidence 
to suit conclusions- it had 
already made. . 

The two biggest US tobacco 
manufacturers, Philip Morris 
and R. J. Reynolds, have joined 
with four other tobacco indus- 
try plaintiffs in bringing a law- 
suit against the Environmental 
Protection Agency seeking a 
declaration that the agency's 
risk assessment should be 
declared null and void. 

They say the agamy ignored 
its own scientific guidelines, 
overstepped its regulatory 
authority, used feulty science 
and improper procedures to 
arrive at its conclusion, and 
"cherry picked” data by ignor- 
ing newer and larger studies 
confaradtothig Its canduston. 

The agency sought to have 
the case dismissed, contending 
their risk assessment was not 
final agency regulation and 
was not subject to judicial 
review. But a US district court 
in North Carolina this week 
threw out the agency’s case, 
paving the way for an exami- 
nation of its conduct in court 


Japan’s odd ruling couple yesterday 
showed conjugal give and take when 
the c o n se rv a tive liberal Democratic 
party agreed, for the first time, to take 
part In a rally against nuclear arms, 
writes WOliam Dawkins. 

Mr Yoshiro Mori, LDP secretary 
general, said the party had accepted an 
invitation from tts new caaKtion 
partner and former adversary, the 
left-wing Social Democratic party, to 
send representatives to the 

ilwniHMfh ii m Him w lriiitfi nrarl 

month. 


Hie LDP’s gesture to the anti-nuclear 
left came two days after Mr Tomii chi 
Murayama, SDP prime minister, made 
an unprecedented gesture to the 
yrp-iaiBtary right by abandoning his 
party's belief that Japan's defence 
forces were unconstitutional. 

“The banning of nuclear weapons is 
a common theme among the people of 
the wortd and, as the only nation to 
have suffered from atomic bombing, 
Japan must be serious about this 
spirit,” Mr Mori said. 

The annual rally, organised by the 


Jwp HII (jun pH tf Agwl ^yri: and 

Hydrogen Bombs, starts on August 3 
and ends three days later an the 
a nn iversary of the atomic bombing of 
Hiroshima. Until year the LDP V** 

refused to attend, on the grounds that 
it was organised by the Socialist 
opposition, with, which it formed a 


The LDP does, however, attend 
mem o r ia l ceremonies at Hiroshima on 
Augu st 5 and at Nagasaki on A- gnrt 9. 
Nagasaki was also bombed in 1945. 

In another gesture to its left-wing 


allies, the LDP said yesterday that It 
bad shelved plans to rewrite Japan's 
US-drafted pacifist constitution. 

However . Mr Yohei Homo, LDP 
president, said there would be no 
change in the party's resistance to 
another Socialist demand, for better 
government medical help for the 
340,000 registered hibakusha, people of 
Hiroshima and Nagasaki suffering 
from radiation sickness. The Socialists 
also argue there are a large number of 
unregistered victims deserving state 
assistance. 


US tight 
lipped on 
Mideast 
initiative 

By Marie Mchotoon in Cairo 

Mr Warren Christopher, US 
secretary of state, yesterday 
completed in Damascus his 
third MUM!* East ahntfle this 
year, promising to return to 
the region soon. 

He declined to reveal the 
substance of talks he held with 
President Hafez al-Assad, the 
Syrian leader. 

A Syrian gov ernm ent spokes- - 
man mdd Mr Assad bad “lis- 
tened to Ideas” Mr Christopher 
had brought from Israel on 
unlocking the impasse over the 
Golan Heights and had 
"expressed readiness to diomna 
steps” to movB the process for- 
ward. 

As on previous visits to 
Damascus, neither Syrian' nbr 
US offiriala have revealed the 
rentontg of what cBpknnats in 
the region believe are detailed, 
but alow-moving negotiations 
between the two sides. Mr 
Christopher visited Damascus 



Farouq al-Shara (right), Syrian foreign minister, greets Warren Christopher on Iris arrival in Damascus for peace talks 


twice dfaMdg this week's initia- 
tive, which cofocided. with- the 
start (ff^yCifleft^Siegbtiatioins 
on. border, water and security 
issues between Israel and Jor- 
dan. 

Meanwhile, King Hussein of 
Jordan yesterday left Amman 
for Washington where he is set 


to hold. Ida first ptdxHc meeting 
■ with Mr^Yhzhak Rabin, Israel's 
prime minister, at the White 
House on Monday. The summit 
will symbolise accelerated 
progress in Israeh-Jordardan 
talks. 

• Israel for the second time 
this week yesterday barred a 


member of the Palestinian 
self-rule administration- from 
entering Jerusalem, the Israeli 
army said. Renter adds from 
Jerusalem. 

An army spokeswoman said 
Mr Mohammed Zuhdi al-Na- 
shashibi, who holds the 
finance portfolio in the Pales- 


tinian. Authority in Gaza and 
Jericho, was stopped as he 
tried to drive into Jerusalem 
from the Jericho self-rule 
enclave. "He [NasbasMbi] 
wanted to enter Jerusalem 
from Jericho but he didn’t 
have permission so was told to 
go bade,” riie said. 


Caldera defiant over suspension of rights 


By Joseph Mam In Caracas 

Venezuela's President Rafael Caldera 
yesterday suspended constitutional 
freedoms a day after Congress had 
ordered them restored, according to 
Interior Minister Ramon Escovar 
Salem. 

Congress voted on Thursday night to 
restore five out of six constitutional 
rights suspended on June 27 by Mr Cal- 
dera, overriding strong protests from 
the executive. The original suspension 
needed to he approved by Congress. 

But the president yesterday called a 
special cabinet meeting to discuss the 
move, after which Mr Salom reported 


ttat Ik had dedded to suspend tbe con- 
stitutional guarantees once again. 

Citing a critical economic and finan- 
cial situation in the country. President 
Caldera last month decreed the suspen- ■ 
sion of three civil rights and three eco- 
nomic rights established under the con- 
stitution. The dvil rights protected 
against arbitrary arrest and imprison- 
ment anH ensured the inviolability of a 
citizen’s home and free movement in 
and outride national territory. The eco- 
nomic rights protected the freedom, to 
engage in any legal ec o nomic activity, 
the ownership of property and against 
expropriation without due process and 
indemnity. 


In a marathon session of both the 
Chamber of Deputies and the Senate, a 
majority voted to restore all rights 
except that of the freedom to engage in 
legal economic activity. 

Three opposition political parties - 
Democratic Action (soda! democrats), 
Copei (Christian democrats) and Radi- 
cal Cause (a leftist group) - formed a 
bloc to back restoration of the five 
rights. The two parties supporting Pres- 
ident Caldera, Convergence and the 
socialist MAS, walked out of the con- 
gressional chamber during the vote. 

Over the week, members of Mr Calde- 
ra's cabinet met congressmen to argue 
for continued susp ension of the rights. 


The suspension was also supported by 
the military and security services. 

However, opposition congressmen 
argued that existing legislation allowed 
the executive sufficient powers to con- 
front the country’s problems. 

Since the rights were removed, police 
and soldiers have raided scores of food 
stores, presting owners for alleged 
profiteering and confiscating merchan- 
dise allegedly “hoarded”. Police have 
aisn raided shun cities, detaining hun- 
dreds of people suspected of criminal 
activities. 

Officials have also seized property 
belonging to individuals and companies 
linked to Banco Latino. 


Raytheon 
secures 
deal to 
monitor 
Amazon 


By Patrick McCurry In Seo 
Paulo 

A consortium led by the US 
electronics company and 
defence manufacturer Ray- 
theon has wem a SLDro (£7«ta) 
contract to build a technologi- 
cal survefDance system in tbe 
Amazon rain forest. 

The Brazilian government 
rejected a French bid, repre- 
sented by Thomson and 
Alcatel, to supply and install 
the Amazon Surveillance Sys- 
tem (Slvam). 

A statement from the Brazil- 
ian president's office on Thurs- 
day evening said the Raytheon 
tender was technologically and 
financially superior. 

The contract Includes the 
supply of radar equipment, air- 
craft and co mmunication net- 
works, which will be used to 
monitor the Amazon for envi- 
ronmental research, including 
deforestation, as well as for air- 
space and border control and 
r- pmhatinff drug trafficking in 
the region. 

The Raytheon consortium 
includes MacDonald Dettwiler 
of Canada, Westinghouse Elec- 
tric, the University of New 
Hampshire and the Brazilian 
operations of IBM. 

It also includes the Brazilian 
government-controlled aircraft 
manufacturer Embraer. 

The Brazilian government 
will receive eight years grace 
on payment and a further 10 
years to pay for the contract, 
which will be financed 
by the US Eximbank, 
according to Mr Esteve 
Ortis, president of Esca, the 
Brazilian company coordinat- 
ing the project. 

Mr Ortis said that the financ- 
ing proposals offered by both 
consortiums were “unbeliev- 
ably good.* 

B razilian companies, particu- 
larly Embraer. will be 
responsible for supplying 
about 40 per cent of the con- 
tract value, he said. 

The US and French bids 
were shortlisted in May after 
the government rejected ten- 
ders from the US’s Unisys Corp 
and a joint bid by Germany's 
Deutsche Aerospace and Italy’s 
Alenin. 

Both the US and French gov- 
ernments lobbied strongly for 
the contract Last October Mr 
Gerard Longuet, French trade 
and industry minister, visited 
Brazil and last month Mr Ron 
Brown, US secretary of com- 
merce, led a trade mission to 
the country. 

The Sivam project is 
described by the Brazilian gov- 
ernment as “the largest and 
most complex attempt to moni- 
tor the environment anywhere 
in tbe world.” 

It will be made up of a net- 
work of fixed and mobile radar, 
aircraft and satellite monitor- 
ing a n d a communications net- 
work. The system will be cm* 
trolled from the capital 
Brasilia, with centres in the 
towns of Maui*™?, Belem and 
Porto Velho. 


Chinese dream sours for high-flying entrepreneur 


F or the past nine months, Mr 
James Peng, a China-bom 
Aust ralian businessman, has 
been held without charge on suspi- 
cion of "corruption” in Shenzhen’s 
Meiltng detention centre in 
southern nhina If Mr Feng is found 
guilty of c o rruption he faces a mini- 
mum prison term of 10 years and 
possibly the death penalty. 

The fete of “ Timmy ” Peng, 35, is 
the story of an entrepreneur who 
flew too high end was brought 
down by a Chinese legal system still 
secretive in its methods and primi- 
tive in its treatment of suspects. 

For a time Mr Feng was a local 
hero. His company Champa ign, a 
textile, property and trading group, 
was the first Sino-foreign joint ven- 
ture listed on a Chinese stock 
exchange. In 1391 he almost pulled 
off the HKgLlflm (£96£m) sale of 
his controlling interest in Cham- 
paign to Lolliman, a Hong Kong 
prop e rty investment company. But 
the dwn l unstuck. 

And late at night on October IS 
last year, Mr Peng was taken from 
the Mandarin Oriental jn Macao by 
the police and banded over to the 
Chinese police, in an arrest which 
has raised international concern. 

On June 9, after repeated 
demand* by the Australian govern- 
ment for an explanation, the Macao 
government said Mr Feng -had con- 
sented to Us return to China to 
answer charges of corruption. But a 
spokesperson for the Australian 
department of foreign affairs and 
trade said last wed that Canberra 
was dissatisfied with' Macao's 
response. 

On June 20, Senator Gareth 
Evans, Australia’s foreign minister, 
wrote to Us opposite number, Mr 


The detention of ‘Jimmy’ Peng on suspicion of corruption has turned the 
spotlight on a secretive and primitive legal system, writes Simon Holberton 


Qtnri Qinhim, expressing the Austra- 
lian government’s "deep concern” 
at China's handling ' of the case. 

Under China’s criminal code a 
suspect can be held for two months 
without charge, Tmitwa the National 
People’s Congress*. China's parlia- 
ment) gives written authorisation 
for an w ytengfon- On Thursday, the 
semi-official Hong Kong China 
News Agency quoted an unname d 
official from the Shenzhen People's 
Procure torate saying that Mr 


by the NPC and was “strictly within 
legal limits”. 

Mr Peng's problems appear to 
relate to his ownership of Cham- 
paign. 

In. 1987 he acquired the loss-mak- 
ing Shenzhen Yuan Ye Textiles 
mmparry and the jCfrgnghgn govern- 
ment approved its con vers ion into a 
Stao-foreign joint venture with Mr 
Peng's Panco Industrial, a Hong 
Kong-registered private company, 
owning 83 per cent of its Yn20m 
(£1.5m) registered capital. This 
Joint-venture oompany was listed an 
the Shenzhen stock exchange in 
March 1990 as Champaign. 

Between 1987 and 1390 Mr Peng 


one Shareholder, Xinye, a state- 
owned company, converted Us ordi- 
nary shares into preference shares. 
Xinye did this for an entitlement to 
dividend payments capped at a total 
of Yn350,000. 

Two monthfl later Mr Peng reval- 
ued the company’s assets. This 
increased Yuan Ye’s net worth by 
Yn25.7m and give Panco a windfall 
gain of Yn24.6m on tts investment. 

The Shenzhen government's 1993 
inquiry found that “this action of 
revaluation resulted in injury to the 


with Champagne's audited profits 
before tax at Yn3l.4m in 1390. But 
ha also angered local officialdom 
with deft WwanHal footwork. 

In July 1988, according to an 
August 1983 report by a committee 
ftgfeahHchw! by the Shenzhen gov- 
omaant to restructure Champaign, 


The first fafcitng that Mr Peng 
might be in trouble came in 1991 
when he tried to sell Panco (which 
then owned about 51 per rent of 
fThampaigp) to L o l liman - Loffixoan 
was well connected in China and 
was sold last year to the People’s 
Liberation Army and renamed Petty 

Tnwafn i»nta. 

Bat the proposed sale to Lolli- 
man, unveiled in June 1991, fell 
through in July. Lolliman cited 
complexities relating to the audit- 
ing; of Panco’s interests in Shen- 
zhen- Press speculation suggested 
the Shenzhen government had 
intervened to stop tbe deal. 

This was also suggested by Mr 
Feng in a tofar he wrote to the 
Australian consul in Guangzhou on 
September 28 last year from Ms 
home in Sydney. 



says, he was negotiating with the 
Shenzhen office of the People’s 
Bank over the sate of nearly half of 


‘Jimmy’ Peng: a focal hero 


Panco’s interest hi Champaign 
when first the Shenzhen govern- 
ment and then the People’s Bank 
called off the taHy 
The central bank sent in inspec- 
tors and seized' Champaign’s 
accounts. Champaign’s bank 
accounts woe frozen and the Peo- 
ple’s Bank stated that no bank 
would be allowed to realise its secu- 
rity against Panco’s mortgaged 


This rendered unsecured loans 
that were previously secureeLAs a 


result, on Junto 20 the Industrial and 
Commercial Bank of China (ICBC) 
sued Champaign in the Shenzhen 
Intermediate People's Court for the 
recovery of a Yn20m loan. The bank 
also alleged that Panco was not the 
legal owner of its interest in Cham- 
paign in view of share trades which 
occurred in 1988. 

The People’s Bank sequestered 
Pasco's investment In Champaign. 
Mr Peng stepped down as chairman 
of both Panco and Champaign in an 
attempt to take some of the heat 
out of the dispute. 

On December 18 the Shenzhen 
court voided Champaign’s loan 
agreement with ICBC - even 
though Panco had paid Off the debt 
before the hearing began - on the 
basis that Panco’s ownership of its 
Champaign shares was illegal 
Panco appealed to the Guangdong 
Higher People's Court 

At the beginning of May last year 
the Guangdong court overturned 
the Shenzhen court’s rating. The 
court found that Panco did have 
legal WIa to its shares in Cham- 
paign and could therefore use them 
as collateral for a loan. However, it 
ordered ICBC to hand over the 
Champaign shares in its keeping to 
the Shmahen Securities Regulatory 
Office -“for further handling* 
because the Shenzhen authorities 
had already decided to "reorganise” 
Champaign. 

At this point Deng Xiaoping’s 
niece, Ms Ding Peng, appeared on 
tbe stage. Mr Peng says in his letter 


to the Australian consul that he 
hired Ms Ding — the dau gh te r of Mr 
Deng Ken, the younger brother of 
Mr Deng- “to more efficiently facil- 
itate communications with officials 
in Shenzhen”. 

According to Mr Peng’s wife, 
Lina, relations with Ms Ding 
appeared to be warm. Inst week she 
said that her husband paid Ms Ding 
HK$100,00Q a month and provided 
her with an office in Hong Kong. 

In his letter to the Australian con- 
sul, Mr Peng says that Ms Ding and 
a Mr Zheng Lie Lie, were hired to 
lead Panco’s discussions with the 
Shenzhen government-appointed 
Champjfign Restructuring Group- In 
apparels defiance of the Guangdong 
court ruling, Shenzhen proceeded 
with its restructuring of Champaign 
in spite of the superior court ruling 
that Panco’s ownership of Cham- 
paign was legal 

In the midst of these talks Mr 
Feng discovered that Ms Ding and 
Mr Zheng were attempting secretly 
to transfer Panco’s shareholding in 
Champaign, valued at HK$45Qm, to 
a company they owned prior to its 
resale to China Investments, one of 
Hang Kong’s lesser "red chips” (the 
mainland equivalent of a "blue 
chip” stock). 

Mr Peng and associates immedi- 
ately sought and obtained a Hong 
Kong High Court injunction pre- 
venting the share transfer. How- 
ever, developments across the bor- 
der were once again moving against 
Win. 


On September 5 last year the 
S henzh en government convened a 
meeting of Champaign’s sharehold- 
ers. Although Mr Pong alleges Jn 
his letter to the Australian consul 
that a quorum was not present, the 
meeting voted to confiscate Panco’s 
shareholding in the company pnd 
divide it between Shenzhen Munici- 
pal Development (Holdings), and 
Hong Kong China Project, a com- 
pany on whose board of directors 
sits Ms Ding. 

Mr Peng immediately lodged a 
suit against the Shenzhen govern- 
ment with tbe Shenzhen Intermedi- 
ate Court but, to date, it has refused 
to accept his application. Weeks 
after this suit was lodged Mr Peng 
was detained in Macao and handed 
over to the Shemhgn police. 

For corporate lawyers, the way 
local Shenzhen officials and. others 
have combined to confiscate Mr 
Peng’s assets has caused alarm. 

"The Shenzhen authorities have 
shown a flagrant disregard for the 
rights of shareholders and creditors, 
which are the basic rights 
ffli shiined m all oompany law,” says 
a Hong Kong lawyer. Furihennore, 
his case is cautionary for ethnic 

Chinese businessmen who are 
nationals of another country. 

The stakes were raised last week 
when Mr Peng’s wife Lina decided 
to publicise her femfly*s relation- 
ship with Ms Ding. To impTi^f^ 
such a dose relative of Mr Deng 
Xiaoping's in this way could invite 
harsher treabnent of her husband. 

An adviser to Una Feng agreed that 

it was a high-risk move - "but fit’s 
been nine months that he’s been 


most of the low-risk strategies," he 


4 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


★ 

NEWS: UK 


C&G leads 
on profit per 
customer 


By Alison Smith 

Cheltenham & Gloucester 
Building Society made an aver- 
age of £82 profit out of each, of 
its L4m customers last year, 
according to analysis carried 
out by Datamonitor, the mar- 
ket research group. 

This made it the society prof- 
iting most from its customer 
base. The nest most profitable 
per customer was Woolwich 
Building Society, the UK's 
third largest, which made an 
average of £39 out of each its 
4.2m customers, ft was the 
most successful at generating 
commission income through its 
branches. 

The research into the differ- 
ent strategies adopted by soci- 
eties for their branch networks 
revealed that the way the net- 
work was run was unprofitable 
for some societies. 

The figures suggest that 
Leeds & Holbeck made a loss of 
£24 a customer on its branch 
network last year, while 
Nationwide, the second-largest 
society by asset size but with 
the largest branch network, 
made a £13 loss per customer. 

They also show that for a 
significant minority of societ- 
ies analysed, the branch net- 
work was broadly neutral in 
terms of profit last year. 

Datamonitor said yesterday 
that the calculations took 
account only of the profitabil- 
ity of societies' branches, and 
not of profits from other 
aspects of their activities. 


PROFIT PER CUSTOMER 

Retail profit Qosaj per customer C 

Nationwide 

*13) 

Halifax 

22 

Woolwich 

38 

Leeds Permanent 

2 

Affiance & Leicester . 

1 

Bradford & Bingtey - ■■ 

m 

Britannia 

a 

Cheltenham & Gloucester 

82- 

Bristol & Waet.. ;. 

24 

Yorkshire 

3S 

(National & Provincial figures not 

avaflabte) 



Sourcar Datamonitor 


Although C&G is the sixth 
largest society by assets, it has 
only 236 branches and mort- 
gage centres, contributing to a 
low cost-income ratio. It is the 
object of an agreed cash bid of 
£I.Sbn from Lloyds Bank. 

Datamonitor said its 
research showed Halifax, Alli- 
ance & Leicester and Nation- 
wide, three of the four largest 
societies, bad relatively low 
commission income per cus- 
tomer bat higher numbers of 
customers per branch, while 
other societies concentrated on 
generating higher levels of net 
commission per customer. 

Halifax is to set up its own 
life insurance operation from 
the start of next year, and 

Nationwide announced in May 

that it too intended to set up 
life insurance and unit trust 
subsidiaries. 

Datamonitor saw the great- 
est scope for percentage 
increases in generating new 
net income for A&L and 
Nationwide. 


Shephard to focus on training for young 


By David Owen and Usa Wood 

Mrs Gillian Shephard aims to 
make the improvement of aca- 
demic and vocational training 
for students of 16 and over one 
of her top priorities at the 
Department for Education. 

As fresh details of changed 
ministerial responsibilities 
emerged yesterday in the wake 
of this week’s reshuffle senior 
aides of the new education sec- 
retary said she was keen to 
focus on the 16-plus age-group 
which had been “traditionally 


neglected". Mrs Shephard was 
“passionately concerned" 
about the education of all 
students aged 16 and above 
whatever their ability, the 
aides said. 

Mrs Shephard's system of 
priorities may spark a change 
of culture at her new depart* 
meat, which has long favoured 
the academic rather than the 
vocational 

As a former employment sec- 
retary Mrs Shephard is acutely 
aware of the workplace dimen- 
sion and is likely to accelerate 


developments which encourage 
what is called "parity of 
esteem” between vocational 
and academic q ualifications. 

She is also likely to question 
her department's strategy of 
setting aggressive targets for 
pupils staying on at school, 
and whether the work-based 
route is better for some. 

She is expected to welcome 
the planned introduction of 
qualifications which assess 
practical skills into schools. 

It was Mrs Shephard who 
started work at the Depart- 


ment of Employment on the 
“modern apprenticeship” - a 
work-based training alterna- 
tive to staying on at school - 
which will be introduced next 
year. 

She was also a keen advocate 
of a “universal credit” being 
offered to all yonng people at 
16, whether staying on at 
school or leaving to take a 
training place on Youth Train- 
ing. the government’s main 
training scheme for unem- 
ployed young people. 

Mrs Shephard's other priori- 


ties at the department are 
expected to include nursery 
education and re-establishing 
what her aides describe 
as the "constructive” dialogue 
she enjoyed with trade 
union leaders as employment 
secretary 

Details of ministerial respon- 
sibilities in the Department of 
Trade and Industry and the 
Ministry of Agriculture Fish- 
eries and Food were published 

yesterday. 

At the DTI Lord Ferrers, the 
former home office minister, 


will assume responsibility for 
small companies and consumer 
affairs, while Mr Tim Eggar 
will take on the Post Office In 
addition to his energy-related 
duties. Mr Charies Wardle, 
another former Home Office 
minister, will provide support 
for Mr Eggar. Mr Ian Taylor 
will have responsibility for 
telecommunications and some 
trade matters. 

Mrs Angela Drowning, 
another new minister, wQI suc- 
ceed Mr Nicholas Soames as 
food minister. 



Tony Blair at London's Savoy Hotel yesterday with Thabo Mbeki, South African deputy president 


Blair tells unions not to 
expect special access 


By Kevin Brown, 

Pottica! Correspondent 

Mr Tony Blair yesterday 
warned union leaders not to 
expect privileged access to the 
next Labour government and 
suggested that only million- 
aires would pay more tax. 

As cabinet ministers 
launched a vitriolic attack on 
the new Labour leader Mr 
Blair set out his vision for the 
party in a series of interviews 
charting his course for the 
centre ground of British 
politics. 

He firmly slapped down Mr 
Ken Livingstone, the only left- 
wing MP openly to criticise his 
election, and dismissed fore- 
casts of a clash on employment 
policy with Mrs Margaret 
Beckett, the former deputy 
leader who he beat in the Lead- 
ership ballot 

Mr Blair told BBC radio that 
unions would have no more 
influence over the next Labour 
government than employers, in 


spite of the unions' constitu- 
tional role in the Labour 
party. 

He said: “Trade unions will 
have no special or privileged 
place within the Labour party. 
They will have the same access 
as the other side of industry. 
They are not going to be told 
that they are not a part of our 
society. But we are not run- 
ning tiie next Labour govern- 
ment for anyone other than the 
people of this country." 

Mr Blair went out of his way 
to reassure better-off voters 
that Labour had abandoned 
the “soak-the-rich” approach of 
the 1970s. and had no plans for 
a return to penal taxation. 

Using language calculated to 
demonstrate the depth of 
change in Labour's approach, 
he pledged: “I am not anti- 
wealth. If someone goes out 
through hard work and graft 
and makes themselves a mil- 
lionaire, good luck to them. 

“But it is right, in that set of 
circumstances, that they 


should not be able, by hiring 
the right accountants, to avoid 
paying tax altogether.” 

But, he said, the number of 
top-rate taxpayers had tripled 
under the Conservatives to 
include primary school teach- 
ers and policemen, who could 
not be called rich. 

That is not what the Labour 
party is talking about at all,” 
be said. The objective was to 
tax those who “end up paying 
virtually no tax or can use off- 
shore trusts or tax shelters not 
to pay their fair share”. 

Mr Blair was clearly irritated 
by Mr Livingstone's claims 
that the “Iovey creatures and 
the spin-doctors" running the 
party had avoided substantive 
policy issues in the election 
campaign. 

Mr Malcolm Rifkind. defence 
secretary, dismissed Mr Blair 
in a speech in Edinburgh as a 
“political mannequin". Mrs 
Virginia Bottomley, health sec- 
retary, described his election 
campaign as “candy Doss”. 


The people who guide 


policy 



THE CABINET 

Prime minister Joh n Ma jor 

Leader of Hie Commons To ny Newton 

Leader of the Lords/Lord Privy Seal 

Viscount Cranbome 

Lord Chancellor Lord Mackay of Ctashfem 

Chancellor of the Exchequer __ Ke nneth Cl arke 

Home secretary Michael Howard 

Foreign and c ommonwealth secretary Douglas Hurd 
Trade and industry secretary 
(president of the Board of Trade) _ Michael H esaftme 
Chancellor of the Duchy of Lancaster David Hiatt 

Educat ion s ecr etary Gillian Shephard 

Defence secretary Malcolm Rifkind_ 

Scottish secretary Ian Lang 


Welsh secretary 
Health secretary 


John Redwood 


So cial s ecurity secretary _ 
Northern Ireland secretary 


Virginia Bottomley 

" P eter UB ey 

Sir Patrick Mayhe w 
Minister of agriculture, fisheries and food 

WBItam Wat degrave 

Tr anspo rt secrefy Brian Mawhfrmey_ 

Employment secretary Mic hael Po rting 

Environmentsecretary John Gum mer 

Nation al her ita ge secretary Stephen porreH 

Ch ief secretary to the T reasury J onath an Aitken 

Minister without portfofio (party chairman) 

Jeremy Hanley 


MINISTERS OUTSIDE THE CABINET 

Ajylcufture: minister of stats - Afichaei Jack; undersecretaries - 
Eart Howe, Angela Brown hg. 

Defence: mfo&ara at state - Roger Freeman, Nicholas Soames; 
undersecretary - Lord Henley. 

Education and Selene* minister at state - Erie Forth; 
inderseostartes - Ttoi Boswell, Robin Squire. 

Employment minister of state - Ann Mddaoombo: 
undenecratanes • James Palce. Philip Oppenhekn. 

Enviro n ment : mfotstere of state - David Curry, Robert Atkins 
Viscount Ubwater; undersecretaries - Robert Jones, Sr Paul 
Beresford. 

Foreign Office: mi nist er s of state - Baroness Chalker, Douglas 
Hogg. Abstair GoodJad, David Davis; undersecretary - Antony 
Bafdry. 

Health: minister of state - Gerald Malone; undersecretaries - 
Baroness Ctvnberiege, Tam Sacfcvfite. John Bovrts. 

Home Office: minist e rs of state - David Maclean. Baroness Blotch. 
Michael Forsyth; undersecretary - Nichola s Baker. 

Law Officers: attorney-genera) - Sir Nicholas Lyefl; soficitor- 
ganera I - Sir Derek Spencer. 

Lord Advocate’* Department Lord Advocate • Lord Rodger. 

Laid Chancellor's Department: undersecretary - John Taylor. 
National Heritage: u nde rsec reta ries - lain Sproat, Viscount Astor. 
Northern fc e h nd Office: nrinlstas of state- Sir John Wheeler, 
Wchae* Ancram; undersecretaries • Baroness Denton. Tim Smith. 


Office of VMatar for the Chrfl Service and Office of the 
Chancefior of the Duchy of Lancaster: undesecratay - Robert 
Hughes. ■ 

Scottish Office: minister of state - Loni Fraser al Camwfla; 
itoderaecretarfes - Allan Stewart, Sir Hector Monro, Lora James 
Douglas Handtoa 

Social Security: mtotetara of state - WWam Hague, Lord Mackay of 
AidbrerAnfsh; trjdereecretartes - James Arbuthnot, Roger Evans, 
ADStalrBurt 

Trade and Industry: mlnfstets of state - Ttowthy Eggar. Rkhad 
Needham, Earl Forets; undersecretaries • Ian Taylor, Chartas 
Wardle, Net Hamflton. 

T ra nsport: minister of state - John Watts: undersecretaries - 
Viscount Goschen. Steven Nonts. 

Treasury: finance secretary • Sr George Young; paymaster- 
general - David Haathcoat-Amory; economic secretary - Anthony 
Nelson. 

Welsh Office: undersecretaries - Roderick Richards, CMynt Jones. 
Whips* Office: chief to Commons - Rfdiard Ryder deputy cNdf 
wWp - Greg Krtght; Comptroller at the Household - Dun 
Ughtbawn; trice-chamberlain of the household - Syrtoay Chapman; 
whips - Tim Wood, Timothy Ktthopa. Andrew Mackay, Ancfcew 
Mitchell, Derek Conway: assistant whfos - Bowen WeB* Shut 
Bums, David Wifiets. Mchaei Bates, Uam Foe chief h Lords - Lord 
Strathclyde; deputy chief whip - Earl of Arran; whips - Viscount 
Long. Bivon e s a Trumptagtqn. Lord Lucas, Baroness Mlerof 
Hendon, Lord irgawood. 


11 


MINISTERIAL COMMITTEES OF THE CABINET 


Committee on economic end 
domestic policy 

Terms of reference: strategic issues retiring 
to economic and domestic policies. Prime 
minister (chairman); chancefior of the 
Exchequer; home secretary; trade and 
industry secretory; Lord Privy Seal; Lord 
President Crf trie Council; environment 
secretary, Welsh secretary; Chancellor of the 
Duchy of Lancaster Scottish secretary; 
Northern Ireland secretary, employment 
secretary chret secretary Treasury. 

Other ministers wifi be Invited to attend lor 
ilems In winch they have a departmental 
interest. 

Committee on defence and 
overseas policy 

Terms of reference: defence and overseas 
pokey. Prime minister (chairman): foreign 
secretary; chancellor of the Exchequer, trade 
ond Industry secretary; defence secretary. 
jHomey-fjoneral. 

Tho chief of defence staff and the chief of 
stall »B attend whan necessary. 

Ministerial committee on the Gulf 

Terms ol reference: to review developments 
In the Gulf region and to co-ordinate any 
necessary action. 

Rime maltster (chairman); foreign secretary 
detenco secretary at torrtey -genera). 

The chief of defence staff »td the chief of 
staff wfU attend when necessary. 

Committee on nuclear defence 

Terms of reference: government policy on 
nuclear defence. Prime minister (ehatonan); 
foreign secretary chancellor of the 
Exchequer del once secretary. 

Committee on European security 

Terms of reference: defence and security In 
Europe. 

Prime minister (chairman); foreign secretary; 
chancellor ol the Exchequer; defence 
secretary. 

Committee on Hong Kong and other 
dependent territories 

Terms of reference: implementation ol 
agreement with China on future of Hong 


Kong and the implications of that agreement 
lor the government of Hong Kong and the 
well-being of Its people; pcOcy toward other 
dependent territories. Prime minister 
(chairman); foreign secretary chancefior of 
the Exchequer; home secretary; trade atd 
Industry secretary defence secretary. Lord 
President of fire Courrdh Foreign Office 
minister of state. 

Others Including Hie attorney general, 
governor of Hong Kong and the British 
ambassador In Peking may be Invited as 
appropriate. 

Committee on Northern Ireland 

Terms of reference: poficy on Northern 
Ireland issues and relations with Ireland on 
these matters. 

Prime minister (chairman), tareKpi secretary 
home secretary; defence secretary Northern 
Ireland secretary chief secretary, Treasury; 
attorney -general. 

Other Ministers wifl be invited as the native 
of the business requires. 

Committee on science end 
technology 

Terms of reference: science and technology 
policy. Prime minister (chairman); forei^i 
secretary trade and Industry secretory 
transport secretary defence secretary 
minister of agriculture, fisheries and food; 
environment secretary chancefior of the 
Duchy of Lancaster; Scottish secretary 
education secretary health secretary, chief 
secretary. Treasury. 

The chief scientific adviser Is in attendance. 

Committee on the Intelligence 
services 

Terms of reference: policy on the security 
and Intelligence services. Prime minister 
(chairman); foreign secretary, chancellor of 
the Exchequer; home secretary defence 
secretary, chancefior of the Duchy of 
Lancaster. 

The Lord President of the Council and the 
attorney-general may attend as appropriate 

Committee on Industrial, 
commercial end consumer affairs 


Terms of reference: industrial, commercial, 
and consumer issues inducting comp e tition 
and deregulation. Chancefior of the Duchy of 
Lancaster (chairman); Lord Privy Seal; 
c han cefior of the Exchequer home secretary; 
trade and industry secretary transport 
secretary Lord Pre si dent of the Cotmcg; 
minister ol sgrictittvo. fisheries and food; 
environment secretary Welsh secretary 
Scottish secretary Northern (retold 
secretary, empiaymentsecretwy. chito 
secretary. Treasury. 

Committee on the environment 
Terms of reference: environmental poficy. 
Chancellor of Hie Duchy of Lanc a s te 
(chairman); Lord Privy Seal; foreign secretary 
trade and Industry secretary, chancellor Of 
the Exchequer transport secrataw mtobtar 
of agrictatira, fisheries wxf food; 
environment secretary Welsh secretary 
Scottish secretary: national heritage 
secretary; Northern Ireland secretary; chief 
secretary. Treasury. 

Committee on home and socle! 
affaire 

Terms of reference: home and social policy 
Issues. Lord President ol the Council 
(chairman); Lord Privy Seal; Lord Chancefior 
home se cr et a ry; trade ae creta ry: transport 
secretary: envtronmoit secretary Welsh 
secretary social security secretary 
Chancefior of the Duchy of Lancaster 
Scottish secretary, national heritage 
secretary; Northern Ireland secretary 
education secretary health secretary 
employment secretary chief secretary. 
Treasury parliamentary secretary. Treasury. 
The minister of apiculture, fisheries and 
food. Hie attorney-general, the Lord Advocate 
and the Captain of Hie GenHemen-at-Arms 
receive papers and are Invited lo attend as 
necessary. 

Committee on local government 

Terms Of reference: Issues affecting local 
government Including the annual allocation ol 
resources. Chancellor ol the Duchy of 
Lancaster (chairman); Lord Privy Seal; 
chancefior of the Exchequer; home aecretary 
transport secretary Lord President of the 


Council; environment secretary, Welsh 
secretary social security secretory Scottish 
secretary national heritage aecretary 
education secretary hertth secretary chief 
secretary Treasuy minister tor local 
government 

Committee on regeneration (EDR) 
Terms of reference: regeneration poOcfes and 
their co-ordtoation. Chancefior of Hie (Xtchy 
ol Lancaster (chairman); Lord Privy Seal; 
home aecretary trade and Industry secretary 
transport secretary environment secretary 
employment secretary education aecretary 
chief secretary. Treasury environment 
mlntetor (housing and toner cities). 

The secretaries of state for Scotland. 
Northern Ireland and Wales should be invited 
to attend as appropriate. 

Committee an Public Expenditure 

(EDX) 

Terms of reference: the allocation of the 
public expenditure control totals, moke 
recommendations to the cfltalnsL Chancefior 
ol the Exchequer (ehatonan); home secretary; 
trade and Industry secretary Lord Privy Seal; 
Lad President of the Councfi; Chancellor of 
the Duchy of Lancaster; chief secretary. 
Treasury. 

Committee on Queen’s Speeches 
end future legislation 

Terms of reference: to draft Queen’s 
Speeches to peril ament and the 
government’s legislative p rog ra mm e tor each 
session of pa ri tewent Lord President of the 
Counci (chairman): Lord Chancellor; Lord 
Privy Seal; C ha ncellor ol the Duchy of 
Lancaster; attorney-general: Lord Advocate; 
parliamentary secretary, Treaauy financial 
secretary. Treasury Captain of the 
Gerrifcrnen-ai-ArTns. 

The foreign secretary should be Invited to 
attend or be represented for discussion of 
Queen’s Speeches. 

Committee on legislation 

Terms of re f erenc e : to examine draft bfita; to 
consider the parliamentary handling of 
goveuvnen t bSs. European Commutity 
documents and private members’ business 


and other related matters, and to review the 
government's policy In relation to Issues of 
parliamentary procedures. Lord President of 
the Council (chairman); Lord Chancefior; Lord 
Privy Seal; Welsh secretary Scottish 
secretary attorney-general; Lord Advocate; 
paifiamantey secre tar y. Treasury minister of 
state, Foreign Office; minister of state. Home 
Office; financial secretary, Treasury; Captain 
of the Gen tteman i-at- Arms. 

Sub-committee oa health strategy 
Terms of reference: the development, 
implementation and monitoring of the 
government's health strategy to co-onteate 
pofictes on issues ef fe cti ng health and report 
to committee on home and social affairs. 

Lord President of Hie CouicD (chairman); 
tra opart secretary; environment secretary; 
social security secretary Chancefio r of the 
Duchy of Lancaster, Scottish secretes* 
Northern Ireland secretary education 
secretary health secretary; minister of 
agriculture, fisheries and food; Welsh 
secretary paymaster-general; ministers of 
state tor trade and industry, employment and 
health: parfiam e rtary undersecretaries at 
Home Office and Department at National 
Heritage. 

The chief medical officer is In attendance. 

Sub-committee on public sector pay 

Terms of reference: to co-ordinate the 
handling of pay Issues in the pubfic sector, 
report to committee on industrial, commercial 
aid consumer affaire. Chancefior of the 
Ouchy of Lancaster (chairman); Lord Privy 
Seal; chancefior of the Exchequer, home 
sec re t ar y trade and Industry secretary 
transport secretary; defence secretary: 
environment secretary Scottish secretary 
education secretary; health secretary, 
employment seoetary; soctaf security 
secretory; chief secretory. Treasury. 

Sub- committee on European 
questions 

Terms of reference: questions relating to 
membership of the European Community, 
reports to committee on defence and 
overseas policy- Foreign secretary (chairman); 

chancellor of the Exchequer; home secretary 


trade and industry secretary transport 
secretary Lord President of the Gouicfi; 
minister of agricuttiea, fisheries and food; 
environment secretary Walsh aecretary 
Scottish secretary Northern Ireland 
secretary employment secretary attamey- 
gerurai; parflamertiary secretary. Treasury; 
minister of state. Fcxalgn Office. 

Other ministers Invited to attend as the 
n3hsa ol the business requtoes. The UK 
permanent representative to the European 
Communities is also in attendance. 

Sob- commit tea on eastern Europe 

Terms of reference: Britain's poficy ol 
asstetfog change in former Soviet republics 
and other tomier Communist countries in 
Eisope, reports to committee on defence and 
overseas policy. Foreign secretary (chairman); 
chancellor of the Exchequer trade and 
industry seoetary defence secretary 
minister of agrtcuHue, fisheries and food; 
environment secretary wnpfoyment 
secretary minister ol overseas development: 
minister of state. Faraityi Office. 

Other ministers may be invited to attend as 
the nature of the business requires. 

Sub-committee on terrorism 

Terms of reference: arrangements for 
couitoing torortsm and dealing with te n u i l e t 
Incidents and their consequences, reports to 
committee on defence and overseas palky. 
Home secretary (chairman); foreign secretory 
defence secretary; trade and Industry 
secretary transport secretary Scottish 
secretary Northern Ireland secretary 
attorney general. 

Sub-oommtttee on London 

Terms of reference: to co-ordinate poficres in 
the capital. Environment seoetary (chairman); 
minister of state. Home Office; m inist e r of 
state for trade and Industry minis ter for 
housing and inner cities; minister for local 
government; minister lor social security and 
disabled people; minister of state lor 
education; minister of state for health; 
minister of state tor employment; economic 
secretory, Treasury minister (or transport In 

London; parliamentary under-secretary for 
national heritage; parliamentary secretary. 


Office of Public Service and Science. 

Sub-committee on drag mime 

Terms of reference: to co-ordnsfe n atluna f 
and totematiend pofiefee on drugs misuse, 
reports to c ommittee on home and social 
affairs. Lord Resident of the Come* 
(chalrmai); soflettor-ganerat; paymas te r- 
general; mMster of stale. Home Office; 
minister of state lor the armed forces; 
minister of state, Scottish Office; minister tor 
health: parilamentary wdereacreterieg from 
Foreign Office, Welsh Office and for schools 

Others. Inducing the minister far ovareeas 
development and parftamentafy under- 
secretaries from the departments of 
environment and employment may be Invited 
lo attend as appropriate and should receive 
papera. 

Sub -committee on women's Issues 

Terms of reference: poficy aid strategy on 
issues of special concern to women, reports 
to committee on home and soda! artslra. 
Employment secretary (ehalnnan); minister of 
agriculture, fisheries and food; pay mas ter- 
general; minister of stale. Deportment for 
Education; minister of state, Scottish Office; 
minister of state, Welsh office; partt am en ta ry 
under-secretary for consumer affairs and 
amafi firms; parliamentary unde r eioretarisfi 
from environment, soda! security, hedlh and 
employment de pa rtmen ts and Northern 
Ireland Office; perfiamuntery secretary. Office 
el Pitofic Service and Science. 

The minister of state; minister for the armed 
forces, parliamentary secretary. Lord 
Chanceila's Department and the 
parfi a mentary under-secretary at the Home 
office w* also reoehre papers and be fmrfted . 
to attend os necessary. 


TOP CIVIL SERVANTS: WHITEHALL PERMANENT SECRETARIES 



Sir Robin Butler: 
cabinet 
aecretary end 
head of the 
home ohrl! 
service 
Aged 56. Oxford. 
Former Treasury 
official in charge of 
public expenditure. 
Principal private secretary lo Margaret 
Thatcher 1983-85. The perfect mandarin from 
top lo toe, he has presided nvoc far-reaching 
roionrt} of Whitehall white defending 
traditional cavil service values. A keen 
sportsman, he has been known to cycle to 
work from Dulwich. 

Sir Terry Burner 
1 Treasury 

Aged SO. 

. Manchester. Joined 
F. -1 the dvfi sendee hi 
1980 from 
academia. Chief 
economic advteqr 
under Geoffrey 

Howe, Nigel Lawson 

and John Major, is gultflng the Treasury Into 
a morn strategic role in WhttehoB. Another 
keen sportsman who supports Queens Park 
Rongm. 



Sir David Glllmora: Foreign Office 

Aged 60. Cambridge. Former teacher who 
became head ol the Diploma tie Service after 
postings fn Moscow. Vienna and Malaysia. 
Oie novel published. To be repfeqed by Sir 
John Coles from August 

Richard Wlfacn: Home Office 

Aged 51. Cambridge. Spent most of career in 
Energy, before moving to B» Treasury in 
1990. Moved to Home Office thrs year after 
two years 33 permanent seoetary at 
Environment Water cokxxtsi and possiae 
successor to Sir Robin Butler 

Sir Christopher 
France: Defence 
Aged BO. Oxford. 
Treasury mai who 
spent time at the 
Electricity Council 
and Ministry of 
Defence before 
headtag Department 
of Health. Prfntipd 
private secretary to Tony Barber aid Denis 
Healey. Recreation: 'Keeping the house up 
and the garden down.' 

Sir Peter Grageon: Trade end 
Industry 

Aged 58. Oxford. Career dvfl servant In Hie 




DTI and fis predecessors. Private secrebay to 
Harold Wteon and Edward Heath. Secretary 
to National Enterprise Board 1975-77. 
Permanent aecretary at Energy Department 
1985-89. 

Valerie 
Straeban: 
Customs A 
ExoIm 

Aged 54. 

Manchester. Joined 
Customs & Excise 
from university, but 
also spent time in 
the (durt-fived) 
Deportment of E conomic Affairs, Home Office 
and Treaswy. Recreations: Scottish Country 
Dandng. On board of ccrtfoarfons of Royal 
National Utebget Institute. 

Sir Anthony 
BatttoMIl: Inland 
Revenue 

Aged 57. London 
School of 
Economica. Career 
spent shuttling 
between Inland 
Revenue aid 

— Treasury. Principal 

private secrets^ to Dents Haafey and 



Geoffrey Howe. 

Andrew Turnbull; Environment 

Aged 49. Cambridge. A Treasury man, in 
charge of European exchange rate policy on 
Blade Wednesday. Principal private seoetary 
to the prime minister 1988-92. serving both 
Margaret Thatcher and John Major. Posstote 
successor to Sir Robfe) Butler. 


Nicholas Monek: 
Employment 

Aged 9*. 

Cambridge. Another 
Treasury men now 
running a Whitehall 
department 
Principal private 
secretary to Dens 
Healey. 


Patrick Brawn: Transport 

Aged 54. School efi Slavonic and East 
Europe an Sto dtea, London. Alter eight years 
with Carreras, Hie tobacco manufacturer, he 
(oirted Unrtck On- and Partners K a 
management consul tart. Joined the dvfl 
service In 1972. Chief executive of the 
Property Services Agency 1990-91. 

Sir Timothy Lari lent on Education 

Aged 32. Cambridge. Joined IheTreaswy in 



1973 after voluntary service in Beflza, an 
Oxford fellowship and the World Bank. 
Seconded to $G Warburg 1981-93. 
P er ma nen t secretary at the Overseas 
Development Administration 1989-94, where 
blowing the wffistie on the Pergau Dam affeir 
appews lo have done his cawr no harm. 

Graham Hert: Health 

Aged 54. Oxford. Most of career spent in 
Depalmant of Health and Social Security, 
apart Irom periods In Scottish Office aid 
Cablet Office theft-lank. 

Sir Michael Partridge: Sgolal 
Security 

Aged 58. Oxford. Entered dvfl arnica 
through ministry of pensions aid rose to top 
of Department of Health and Soda Security 
with brief spell at the Home Office In charge 
ot pobce depL Senior treasurer for toe 
Methodbts. 

Richard Packer: Agriculture, 
Fisheries and Food 

Aged 49. Manchester. Moat of career spent 
In MAFF. apart hum period to Brussels to UK 
office at EC. Recreation: *Uvtog intensely.” 

Richard Muttram: Office of Public 
Service end Science 

Aged 48. Keefe. Most of career spent in 


Mtototry or Defence, which he Is tipped to 
head In the future. Star prosecution witness 
el trial ot Clnre Porting. Principal private 
secretary to Michael Heseffine ditong the 
Wesdand affair. Playdd a central rale on the 

options lor change white paper, the post- 
cold war review of Britain's defence 
requirements. 

Sir Thomas Logg: Lord ChoneeJIoria 

Department 

Ag«i 58. Cambridge. Banister who |olned 
Ihe department to 1962. Assistant sofotar, 
1975. S£ Circuit administrator 1960-82. 
Chalirresi CM Service Benevolent Fund. 

Hayden Phillips: National Heritage 

Aged 51. Cambridge. Home Office career 
ended with a spelt In Roy JenRtos’ private 
office to Brussels. Moved to Cabinet Office, 
then Treasury where he was in charge of dvfl 
service matters. Tipped to run a larger 
department. 

John Venter: Overseas 
Development Admlnletrstlon 

Aged 49. Another Keefe graduate. Spent 
most ot career in QDa and predecessor, with 
Urea at the World Bank sid Number 10. 
Deputy secretary at Department for 
Education In chaiqo ol further and higher 


education, then schools before ratumtog to 
head OOA this year. Also tfopad lor graitar 
things. 

Sir Ruaaell HUlhouae: Scottleh 
Office 

Aged 66. Glasgow. Has waked In most 
departments to the Scottish Office, «Bh « 
period at the Treasury. Re creatio n : "Making 

Michael Scholar: 
Welch Office 

Aged 52. 

Cambridge. TVeasuy 
man struggling to 

<**cm up quango to 

Wdas. but tipped for 
furthw promotion. , 

.. Private secretary to 

Jod Barnett and Margaret Thatcher. Spam 
two years on saomdmert to Bardays Bank 
International. An accomplished muridan, 
playing ihe piano ond organ, and an *part 
an Wmganstain and Aristoda. 

Sir John Ohlloot: Northern Ireland 
Office 

Agad 55. Cambridge. Roee ttvorflh Homa 
Office with period at the Cdffcwt OWfifc 

Seconded to Schraders, the marcher# oenx, 
1986-87. Possible head of larger department 







tHl li 


for . 'nMES WEEKEND JULY 23 /JCJLY 24 1994 


** -V. 

... 


you 


NEWS: UK 


MPs to urge wider role for telecoms groups 


By Davfd Owen 

British Telecommunications would 
be free to carry entertainment ser- 
rices to seme parts of Britain by the 
late 1990s under proposals to be 
unveiled by MPs next week 
The Cm nmons trade and industry 
committee is expected to recommend 
sweepng changes to the licensing 
fr a n chisi n g and exclusivity arrange- 


The Tory-controlled body is expec- 
ted to urge ministers to remove 
uncertainty which MPs feel has bees 
dogging the sector. It is Hkely to say 
the regulatory system is too rigid. 

The report comes «mM nyvrnitiwg 
calls for the government to rethink 
its policy banning BT and Mercury 
Communications from offering 
entertainment services over their 
existing networks until at least 200L 
BT Is most hard hit because, 


Mercury, it has a local- network. 

Sir Bryan Carsberg, director- 
general of fair trading, said last 
month that the ban could create 
local telecommunications monopo- 
lies in the shape of cahletalevishm 
companies if continued for too long. 

IBs remarks came three weeks 
after Mr Michael ReseltLae, trade 
and industry secretary, flatly 
refected a Labour proposal to lift the 
ban In return for BT agreeing to 


Invest heavily in extending fibre- 
optic cables into its local network. 

He said it would be "toe gravest 
possible breach of inte gr i ty* for the 
gov ern ment to go back an its word 
to the cable companies. 

When imposed to 1991, the ban's 
aim was to encourage cable compa- 
nies to invest in local cable net- 
woks, providing telecoms services 
in c om pe titi on with BT. 

Nest week’s report is expected to 


recommend that the government 
starts reviewing foe exclusive rights 
given to cahle companies to cany 
entertainment on a franchlse-by- 
francfclse basis as they mature 

This could have the effect of allow- 
ing public telecoms operators into 

foe entertainment market well 
before the end of this decade. 

Many observers believe the stron- 
gest case for an early lifting of foe 
ban is in parts of the country 


not covered by cahle franchises. 

Oftel, foe telecommunications reg- 
ulator, is empowered to report an 
the desirability of lifting the ban 
from 199G. But Mr Don Cruickshank, 
Offers bead, has played down the 
prospect of even a review of the BT 
ban before 2001. 

The cable companies say the ban 
is essential to ensure the viability of 
their pirmnpH £6tm investment in the 
next five years. 


• ns Oot| Court fails to answer 
‘ l ac ce$s Mercury’s bitterness 


£ 




The refusal by the Court of 
v Appeal yesterday to interfere 
in the dispute between 
P; Mercury and Oftel, the 
. toTflcnTmnuntaoflQTi" reg ulator . 
- ; will not only affect Mercury, it 
. - has ramifications for wider 
} telecoms competition in the 
O UK and far the relationship of 
>* utility regulators with the 
courts. 

Mercury has long been 
aggrieved by what it regards as 
v excessive prices it pays British 
Telecommunications for 
delivering its long-distance 
«»T |a to their final de rth'mti on 
■'>r across foe local BT network, 
c This discontent has turned 

- to bitterness in the face of 
^ recent large cuts in BT prices 
- 1 and fast-growing competition 
ix. from new operators licensed 

since the abolition in 1991 erf 
foe BT/Mercory duopoly. 

<. Although BT carries 85 per 
^ cent of all phone calls by 
^ value, the new competitors 
could harm Mercury more than 
/, BT because their target is the 
corporate market, which is 
-- Mercury’s main source of 
revenue. 

Mercury’s complaint's are 
''' complex but boil down to two 
issues. 

'■ It beffieves that foe s&caEed 
.. “access deficit contributions” 
(ADCs) - which it pays to 
compensate BT for losses it 
makes an its local network - 

* Service 
pledge in 
train 
dispute 

By Lisa Wood, 

. Labour Staff 

Rail users can expect a slightly 
better service during next 
week's 49-hour stoppage than 
during last week’s one-day 

• strike, Railtrack, the state- 
owned company responsible 
for foe railway infrastructure, 
said yesterday. 

Mr John Ellis, Rail track's 
production director, was ques- 
tioned by the Central Rail 
Users Committee, foe official 
••• watchdog of rail travellers, at a 

• scheduled meeting in London 
. where he expressed little opti- 
mism for a quick resolution of 
the signalworkers’ dispute. 

He said; “We are anticipating 
that we should be able to pro- 
vide a very similar, if not 

* improved service, than that we 
offered last week-” 

Mr Elhs said 30 per cent of 
the normal weekday rail net- 
work would be available dur- 
ing the strike period, which 
begins from noon next Tues- 
day. 

He hinted that contacts had 
been established between Mr 
Bob Horton, Railtrack chair- 
man, and Dr Brian Mawhin- 
ney, the new transport secre- 
tary. He said: “I personally 
have not had contacts with 
hhn but there has been scone 
initial contact with the new 
secretary of state." 

There has been speculation 
about a breakthrough in nego- 
tiations next week. Mr Ellis, 
who did not rule out talks this 
weekend at Acas, foe arbitra- 
tion and conciliation, service, 
said he could not say when the 
dispute would end. “We are 

still a long way apart and there 

- is not wuirfi sign on a formal 
basis of resolving the differ- 
ences but informal talks con- 
tinue." 

RMT, the transport union, 
wants an “up-front* pay rise 

for nos* productivity improve- 
ments before it will agree to 
talks on restructuring signal- 
ling work. Railtrack wants a 
binding agreement on such dis- 
cussions before it will make 
such a movie. 

On the safety of managers 
and supervisors operating sig- 
nals during the strikes Mr Ellis 
sal* There is absolutely no 
compromise on safety, I 
deplore what RMT have been 
doing to raising totally unnec- 
essary fears about this issue." 

The Health and Safety Exec- 
utive confirmed that its inspec- 
tors had made spot chec k s this 
weft daring the strike. 

The executive said: “to none 
of these Instances were there 
grounds for the inspectors tak- 
ing enfbrt&neat action." 


Andrew Adonis 

on a decision 
which will 
affect utilities 
and regulators 

are a tax on competition. 

It also challenges the current 
basis for interconnection 
payments. 

Mercury says that a 
capacity-based system - under 
which, comp e ti to r s would pay 
BT mostly for peak-rate 
capacity, not individual calls - 

WOUld be fair er than tha 
current pet>call system. 

The court case concerned the 
latter issue, capacity-based 

charg in g 

Unless Mercury can 
persuade the House of Lords to 
overturn the Court of Appeal's 
decision it win have to return 
to Oftel to secure a change. 

Oftel says, however, that 
Mercury has provided it with 
no more than a sketchy outline 
of the new system it wants, 
and industry analysts are 
sceptical that a capacity-based 
system could be made to work 
in practice. 

In the process, however. 
Mercury has raised important 
questions about the role of the 


courts in supervising utility 
regulators. 

Mr Don Cmickshank, 
director-general of Oftel, 
deprecates the idea of the 
courts playing an integral role 
in the regulatory process, 

arguing that it would bring nil 
the evils of foe US telecoms 
industry “where no-one - 
regulators or Industry - knows 
what is or isn’t allowed”. 

The verdict the Court of 
Appeal has delivered is an 
ambiguous one. 

In dismissing M ercur y’s ca se 
without allowing it to rehearse 
foe detailed points at issue foe 
court refused to Involve itself 
and refrained from setting a 
■ precedent for other companies 
or organisations - particularly 
in the envir onm ental field - 
disgruntled with a regulator. 

-However, foe judges made 
comments which might 
encourage Mercury and others 
to try their lock in future. 

One of the three judges ruled 
that Mercury bad mada out a 
case worth a judicial bearing 
And one of the judges to- the 
majority said he was “not 
persuaded" by Mr 
Cruickshank's baain argument 
that the courts should not i 
interfere in Oftel’s 
interpretation of flw imawt at 
stake, although he dismissed 
Mercury’s case for other 
reasons. 




A steam engine operated by Ffestiniog Railway, near Tanygrisau, on a fine which will eventually reach the north Welsh coast 

Ffestiniog wins tight for rail route 


By Charles Batchelor, 

H— por t Co n aapo nd ant * 

A fierce battle between rival 
steam railway companies for 
control of a 23-mils stretch of 
disused irng through Snow- 
donia national park has been 
decided this week. 

Mr J ohn UacCfregor, in nw> 
of his last acts as transport sec- 
retary, gave approval for the 
Ffestiniog Railway to acquire 
the railway bed against a rival 
claim f rom the Welsh Highland 
Light Railway. 

. In deciding in favour of Ffes- 
tiniog Mr MacGregor over- 
turned the T ncnmmpnrtfft jnn of 
the inspector who chaired a 


Backbench pressure over 
plans for Ulster assembly 


By David Owan 

Senior Conservative 
backbenchers are stepping up 
pressure CD the gn v en nn mt to 
accede to unionist calls to fin- 
alise plans for a devolved 
Ulster assembly without 
waiting to agree an 
all-embracing settlement. 

Senior MPS are encouraging 
ministers to abandon the old 
“nothing is agreed until every- 
thing is agreed” formula gov- 
erning political talks on North- 
ern Ireland’s future, in favour 
of an undertaking that nothing 
is implemented until every- 
thing is agreed. 

They suggest such a change 
could enable cross-party baft- 
tog for a blueprint for devolved 
government to be secured 
more quickly without depart- 


ing from foe so-called three- 
stranded approach supported 
by twrtirmnlte is. 

This requires relations 
between Ulster and Dublin and 
l^ pdnn ami Dublin to be dea lt 
with in the same process as the 
province’s Internal politics for 
the purposes of the current 
talks. 

News of the MPs’ initiative 
emerged «nM indkatiODS that 
unionists and Tory right- 
wingers have been hea rt ened 
by remarks made by Sir Pat- 
rift Mayhew, Northern Ireland 
secretary, this week 

Sir Patrick told the Daily 
Telegraph that Dublin’s territo- 
rial claim to Ulster was the 
central issue to be resolved to 
drafting a joint framework doc- 
ument aimed at encouraging 
foe province's political parties 


to retu r n to the negotiating 
table. 

Meanwhile leaders, of Sinn 
FQn, the IRA’s political wing, 
prepared for this weekend’s 
conference - at which the 
- party’s response to the Down- 
ing Street Declaration is expec- 
ted to be decided - as the cycle 
of violence in the province con- 
tinued with a killing and a 
spate of firebomb attacks. 
Bobby Monaghan, 44, a Catho- 
lic human, was shot by loyal- 
ist gunmen f rom the outlawed 
Ulster Freedom Fighters in 
Newtonabbey, north of Belfast 
• In London, two High Court 
judges indicated that they 
intend to refer the government 
ban on Mr Geny Adams visit- 
ing mainland Britain to the 
European Court erf Justice in 

I mi xifflih flnrg. 


‘Manchester pic’ profits up 


By Ian Hamilton Fazey, 
Northern Correspondent 

“ Manches ter pic", the aggrega- 
tion of the results of the top 
100 companies in the conurba- 
tion, made £1.481ut pre-tax 
profit to 19S994, a rise of 6.5 
per cent over the previous 
year’s 2L39bn - in spite of foe 
period reflecting the worst 
effects of recession for many erf 
the frwripnwiftg involved. 

The "accounts”, compiled by 
Manchester's SPMG Feat Mar- 
wick, lag the economy because 
they are a compflatian of fig- 


ures which are themselves his- 
torical. 

Mr Alan Benzie, managing 
partner of KPMG to Manches- 
ter, warns that confidence 
remains fragile and the 
strength of recovery will 
require careful monitoring if 
companies are to become suffi- 
ciently reassured to try to 
force expansion again. 

Turnover — the criterion by 
which the 100 companies were 
selected and ranked - was only 
£10,000 short of £29bn, com- 
pared with £27.94bn in the 
1992-93 “accounts”. Although 


this was only a &8 per cent 
increase, as opposed to the pre- 
vious year's 4L9 per cent, it was 
ahead of an inflation rate of 
less than 3 per cent 

This means that combined 
with increased profitability, 
industry and commerce gained 
to efficiency and performance 
as recession forced restructur- 
ing, on manufacturers in par- 
ticular. This helped ensure an 
almost unchanged return on 
ca pital of &3 per cent. 

Operating profit was margin- 
ally better at 63 per cent com- 
pared with 5 l 8 per cent 


four-week public inquiry into 
foe rival bids last year. 

His ruling clears the way for 
Ffestiniog, which already runs 
a successful steam railway 
over a 13-mfle route between 
Blaenan Ffestiniog and Porth- 
madog, to create a 3&mile loop 
throu gh tile naHmiil park to 
the tourist centre of Caernar- 
fon on ti>A north Welsh coast. 

Mr MacGregor wmw down in 
favour of Ffestiniog in part 
because erf its experience. The 
company, which employs 60 
people alongside 6,000 volun- 
teers, expects to invest £350,000 
In its existing line this year. It 
carries nearly 200,000 people a 
year with a turnover of £2m. 


Gas users 
warned of 
possible 
increase 


By Davkl La ecotoc, . 
Resources Edttor 

Gas prices may have to rise for 
some consumers as competi- 
tion is introduced into foe 
domestic market, British Gas 
has told the government 

In a letter to eabmet minis- 
ters andseiected MPs Mr Ced- 
ric Brown, the chief executive, 
says that the removal of cross 
subsidies meant “there will 
need to be a period of transi- 
tion in which some price 
adjustments are necessary". 

This is because small con- 
sumers are subsidised by large 
customers. Competition is 
expected to be more intense 
among large consumers, how- 
ever, and British Gas has 
already said it may have to cut 
prices in that segment of foe 
market to protect its position. 
This would also mean that 
charges might have to go up 
for small gas users. . 

Mr Brown confirms in his 
letter that British Gas would 
lake to see a delay in foe April 
1996 date proposed for the 
start of phased-tn competition. 
He stresses that this is because 
more time is needed to intro- 
duce changes, inducting com- 
pletely new computer and 
operational systems. 

British Gss remains commit- 
ted to frill competition by the 
government’s target of April 
1998. 


Work on restoring a service 
on the disused track bed could 
take up to 15 years to complete 
and cost between £10m and 

Mr Gordon Bushton, foe gen- 
eral manager of the Ffestiniog 
Railway, is offering the Welsh 
Highland Light Railway, an 
entirely voluntary organisa- 
tion. the chance to cooperate 
on the project but considerable 
hittpfiiffSB remains between foe 
two. 

Disputes between rival rail- 
way enthusiasts are not 
uncommon. The Association of 
Railway Preservation Societies 
said it was a pity so much 
money, which could have been 


spent an restoring the railway, 
had been wasted on legal 
expenses. 

The decision in favour of 
Ffestiniog could be seen as a 
farther smell step down the 
road towards privatising 
Britain’s railway network. The 
Welsh Highland bid had foe 
support of Gwynedd county 
council and a number of other 
local councils - one reason for 
foe Inspector recommending 
Welsh Hi ghland at the inquiry. 

But Mr MacGregor con- 
chided that the inspector had 
attached “too little weight to 
fhw benefits of placing such 
matters entirely within foe 
private sector.” 


Material prices 
set to push up 
building costs 


By Andrew Taylor, 

Construction Correspondent 

Prices quoted by building 
groups bidding for contracts 
are forecast to rise by up to 10 
per cant in the next year as 
they seek to recover profit 
margins and pass on increased 
material and labour costs. 

E.C. Harris, international 
construction cost consultants, 
said yesterday that even so, 
tender prices are. expecte d to 
remain 15 pea: cent lower than 
at the peak of the development 
boom to 1989. 

R forecast that construction 
tender prices nationally would 
rise 5x5 per cent in foe next 
year with an identical increase 
over the following 12 months 
to autumn 1996. 

Prices to London, where foe 
resur g^nra jjx cpra tractfap 
been greatest, are forecast to 
rise by up to 7 per cent cm 
average to 199495. 

Mr Christopher Vickers. E.C. 
Harris chairman, said the rises 
“could surprise customers 
who, after two years of virtual 
stagnation in construction ten- 
der prices, have become accus- 
tomed to fairly constant 
prices". 

Prices of building materials 
rose 6 per cert on average in 
thft 12 months to the end of 
April - more than twice the 
increase in the retail prices, 
index over the same period. 

Plasterboard and construc- 


tional steel prices rose more 
than 10 per cert on average. 
Prices .of bricks, concrete 
blocks, cement, concrete root 
tiles and clay pipes also 
rose more than foe sector 
average. 

The figures mask wide 
regional variations.. Structural 
steel prices nationally aver- 
aged £886 a tonne compared 
with about £950 a tonne to Lon- 
don. Concrete floor-slabs priced 
at £70 a cable metre compared 
with £59 nationally. 

• The pace of recovery in the 
housing market continued to 
slow last month although sales 
of new homes are holding up 
better than the general market, 
the Housebuilders Federation 
reported yesterday. 

Almost half of the 471 house- 
builders questioned to a survey 
said that agreed sales an which 
a deposit has been paid, less 
any cancellations, bad fellow 
since May. 

Most builders, however, 
reported that these agreed 
sales were higher than in June 
last year, when the housing 
market similarly fell after 
starting the year strongly. 

The federation said: 
“Although growth in the new- 
homes market has been sus- 
tained, the June survey 
showed that the rate of growth 
has slowed significantly. Sales 
of new homes have con ti nued 
to ont-pexfonn sales in the 
secondhand market." 


Swans 
bidder to 
meet 
Rifkind 


Mr Malcolm Rifkind, foe 
defence secretary, and Mr 
Roger Freeman, defence pro- 
curement minister , Trill on 
Tuesday meet the head of 
Sofia, the parent of foe French- 
based company CMN which is 
the sole prospective buyer for 

Tyneside shipbuilder Swan 
Hunter, Chris Tighe writes. 

CMN has said it will only 
buy the yard If the government 
guarantees two years' base 
workload. Swans’ present work 
finishes in November. 

An offer to Swans by the 
Ministry Of De fenc e of the SBra 
refit of the Royal Fleet Auxil- 
iary tanker Qlwen depends on 
the yard chiding a buyer and 
ending its receivership by 
August L 

MetroCentre to 
open on Sundays 

The Church Commissioners, 
landlords to the MetroCentre 
in Gateshead, Tyne and Wear, 
are to allow the shopping cen- 
tre to open on Sundays. 

Approval follows an 80 per 
cent vote in favour by tenants. 

Consortium set to 
boy LT advertising 

London Transport looks set to 
sell its advertising arm, Lon- 
don Transport Advertising, to 
a consortium led by the largest 
transport advertising company 
to foe US, Transportation Dis- 
plays Incorporated, and 
Hambro Group Investments. 

LT said yesterday that it was 
dropping all but two from its 
shortlist - the consortium, and 

a wianapmiy nt and emplny aa 

buy-out LT said the consor- 
tium was its preferred bidder. 
The sale is due for completion 
before the aid of August 

ITN and NBC to 
share news material 

Independent Television News 
is to supply news packages to 
NBC, the US network, and its 
affiliate stations in a deal that 
also allows ITN to use NBC 

material 

The deal follows a decision 
by ITN to sell Its news cover- 
age directly rather than having 
it handled by Worldwide Tele- 
vision News. 

Easing of radio 
rales is sought 

The Radio Authority has asked 
foe government to simplify 
ownership rules for commer- 
cial radio stations. 

i limits on how many stations 
a company can own are deter- 
mined by a points system. A 
nat i onal commercial station is 
worth 25 points, while a local 
station is worth three points. 

No group can own more than 
15 per cent of the points or 
more than 20 licences, more 
than six London and large met- 
ropolitan stations, or two FM 
stations to any area. 

The authority warts to pre- 
serve the 15 per cent rule, but 
believes most of the others are 
no longer necessary. 

Airport reports fall 

Manchester Airport’s profits 
feO to £l&6m in foe year to the 
end of March compared with 
£38m in 1992-93 because of 
higher operating costs and 
interest charges after opening 
its second terminal last year. 

Union chief dies 

Alex Frtry, former general sec- 
retary of the Confederation of 
Sbjpbufidmg and Rn fltepwtng 
Unions, has died aged 63. 


Civil service computer spending ‘to fall’ 


IT as % o^ttiuiiiiins costs 


cabinet 
Northern irafand 
BcctmqiMT 
DTI 
HtfF 
SocttSecwfty 

Transport 

r o n teOlto 


ftooUand 
Education 
National Heritage 
E m p lo yme nt 

LondCtePoetior 
Home Office 
Envtauflirtflt 


-KdfemHantf 



TndudracerSraf preamp** trtefS 


By Alan Cane 

Civil service spending on 
computer systems is set to fell 
to 1994-95 for the first time in 
five years, according to one of 
tbs first detailed analyses of 
gover nm ent Tn fa rpTatfm tech- 
nology expenditure. 

The biggest drop, 48 per cent. 
Is at foe Department of Social 
Security which, along with the 
Exchequer (comprising Trea- 
sury, ftngfnmg and TCrriga and 
inland Revenue) and (he Minis- 
try of Defence, accounts for 
about two-thirds of the £25hn' 
spent aimnaTTy by government 
departments and p genrapq an 
hardware, software, external 
services and c om puter staff. - 

Its IT services arm, ITS A, 
plans to spend £68m on 
computers this year, £64m less 
than last 

The analysis, carried out by 
Eable, a research group 
specialising in public sector 
information systans, does not 
take into account the dramatic 


decline to computer hardware 
prices over the past few years. 
Kable concludes nevertheless 
that foe boom is over for 
equipment suppliers: “Civil 
service hardware spend has 
risen an average 5 per cad: a 
year over the past four years. 
At the depth of foe recession to 
1991-92, government was decid- 
edly. popular with the com- 
puter industry as budgets rose 
20 per cent This year, equip- 
• mebt spend is set to drop 10 
per cent," it says. 

Hie Eable study puts down 
benchmarks for government IT 
spending when, as a conse- 
quence of market testing and 
the outsourcing of computer 
operations, foe picture will 
became modi more complex. 

Personal computers 
accoun te d for 42 per cart of 
civil service hardware spend in 
1993. T he MbD alone spent £86. 

Some £303m was spent on 
software in 1993, representing 
12 per cert of overall IT spend- 
ing. The largest share, 45 per 


cent, went on specially written, 
or custom, software. In 
commercial data processing, 
pre- written or packaged soft- 
ware is increasingly preferred. 

Departments sport a total of 
£127m on consultancy, repre- 
senting 5 per cent of their 
systems budgets. However, the 
DSS and the Exchequer each 
spent 8 per cent of their bud- 
gets while Northern Ireland 
and Employment spent less 
than 01 per cent 

Market testing - where the 
performance of in-house 
operations is measured ai*n 
threw up broad differences. 
The leaders - the Exchequer 
and foe MoD - have each 
tested £350m worth of services 
while foe DSS and the Lord 
CbanceHar’8 Department have 
not tested activities worth 
more than 1 per cent of their 
gross running costs. 

Sable Market Profile: Civil 
Service IS 1S94J95 available 
from Sable, 40 Boating Omit 
Lane, London ECl ONE, £2J5Q 


ALLIANCE INTERNATIONAL TECHNOLOGY FUND, 

SocfM tflnvestissement * capital variable 
47. Boulevard Royal. L-2449 Luxembourg 
RC. Uixwnbcxrg B 21-278 

NOTICE 

Nonce Is hereby given to attend the Annual General Meetiry of SharehoUara. 
which wti be held on July 29, 1994 at 2J0 pun. (Luxembourg lime) at tha o(BcSk 
ol Sate Street Bank Luxembourg &A. 47, Boulevard Royal. L-2449 
Luxembourg, tor toe tofowtng purposes: 

AGENDA 

1. To approve the annual report Incorpora ti ng toe auction 1 report and 
financial statements at toe Ftmd tor toe fiscal year ended March 3L t 994 _ 


tosir duties during tha fiscal year ended March SL 1994. 

3- To approve toe payment at a dMdand a/ S.W par share payatte .io 
sharehobemol record cn July 28. 1894. 

4. .lb elect toe following persons as Dfrectore, each to hold office unSLihe ifet- 
Anrural General Meeting of SharshoMara and urtfl Ms or its suxenor fedSL 
elected and queued: u ^ 

Dave R Dtevlar, Chairman - • 

WBfiam H. Henderson ?• 

SMngn&wzmwt > 

Dave a W&ams , . „ .V.. 

John M. WWaras ' . ^ • 

HhoshlOhte * -C- 

Shugo Uzawa ’ ; if ' 

6 - 01 *“ ™»>*«i** 

6. To transact such other business as may property come hafarw ttm . 

Oriy starehoktaa of record at toe dose of business on June 15, 1BB4 ara wateM 
to notice ot. and vole at. toe Annual General Meeting of S h amhoid u nt aiataasS 
adjournments thereof. - "4*9 

Should you not be abb to attend toe meeting In parson, please return vinr m&T 
before July 2S. 1994 by fax and by atonal «k 

Stale Street Bade LinatnbouraSJL rwftt 

P.O. Box 275. 47 Boulevard Royal ... -„ . 

L-2449 Luxamboutg \ i ' <' 

Fax number 4852-470204 

to the attention ot Petra Bias, to assure that a quorum wti be ohm 
meeting. ... _ 


qgggyflg ••• * 








* t ’ V \vr: r 




6 


FINANCIAL TIMES WEEKEND JULY 2 3/ JULY 24 1994 


★ 


FINANCIAL TIMES 

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

Saturday July 23 1994 

Policy in 
the upturn 


Now more than ever, the makers 
of monetary policy can expect 
their every word to be probed for 
signs of a change in policy, llie 
trouble Is that both the tools of 
their trade and market reactions 
to their efforts have become 
increasingly unreliable. 

The obvious approach is to 
make things dearer. The decision, 
to publish the minutes of the Brit- 
ish chancellor of the exchequer's 
monthly meetings with the gover- 
nor of the Bank of England was a 
si gni fic ant step in this direction. 
In the account of the June mast- 
ing - published this week - Mr 
Eddie George judged the situation 
“very favourable” and Mr Ken- 
neth Clarke was happy to agree. 

UK growth in output, as evi- 
denced by Friday’s preliminary 
estimates of growth in total gross 
domestic product of 3.8 per cent 
for the year to June, continues to 
exceed the historical trend. Exclu- 
ding the erratic output of oil from 
the North Sea. however, the 
increase was only 2.7 per cent. 
Although the narrow measure of 
money supply is currently grow- 
ing above its target range, the 
eclectic range of other monitored 
variables does not indicate any 
need for immediate monetary 
tightening. Or so the chancellor 
and the governor agreed. 

Their judgment looks sensible. 
One reason the Bank seems to be 
relatively sanguine about inflation 
is its estimate that the economy 
has an output gap of 6 per cent of 
GDP. following the long recession. 
For all that, bottlenecks may 
emerge quite soon. The steep slope 
of the UK yield curve indicates 
that the markets are concerned 
about the possibility of higher 
inflation (and higher interest 
rates) in the not too distant 
future. Base rates will Indeed have 
to rise from their current low 
level, though, with luck, not much 
before the end of the year. 

Timid moves 

The same has been said for 
some time about American official 
interest rates, an impression 
which the Federal Reserve chair- 
man, Mr Alan Greenspan, did 
nothing to remove this week. Dur- 
ing the first of his biannual testi- 
monies to Congress at the begin- 
ning of the year, he tried to 
forewarn the markets of higher 
Interest rates. Consequently, he 
was surprised by the dramatic 
plunge in the bond market that 
followed his first timid moves 
towards a long-canvassed tighten- 
ing of the US monetary stance. 

It seems that for a central bank 
to explain what it is about to do is 
not as helpful as might be expec- 
ted. The only answer is for it to 
try still harder. One thing he has 
consistently pointed out is that for 
the US to take the lead in tighten- 


ing monetary policy is a necessary 
sideefltect of America's head-start 
in the world's move out of reces- 
sion He also signalled that the 
international aspects of monetary 
policy - above all, the level of the 
dollar - were not going to be left 
out of the equation. 

Bids for a dollar recovery are 
also being voiced by members of 
the Clinton administration. Yet, 
ever since the G7 in Naples 
decided that the dollar's fall could 
not be prevented, the currency 
has in fact stabilised. An adapted 
law of unintended consequences 
might suggest that supportive 
comments from Washington will 
send it down again. A steady fur- 
ther depredation of the American i 
currency remains the conven- 
tional financial market wisdom. 
But the market's conventional 1 
wisdom is almost automatically 
wrong. If everyone has sold the 
dollar short already, who is left to 
do so? j 

Odd weakness 

For all the concern about the 
American trade account, the dol- 
lar's weakness looks somewhat 
odd, given that short-term US 
interest rates may soon exceed 
German ones, an event which Mr 
Greenspan's careful comments 
brings closer. The betting on such 
a “cross-over'’ was only margin- 
ally confused by the Bundesbank's 
decision, announced on Thursday, 
to fix its “repurchase” rate at 4A5 
per cent for the next four weeks. 
In effect, tins reduced the rate by 
only 3 basis points over the com- 
ing weeks, a contorted way of lim- 
iting speculation about the timing 
of future rate cuts. 

The Bundesbank had reason 
enough for its contortions. It has 
been cutting interest rates in the 
light of the performance of infla- 
tion, which has best failing , and 
of the economy, which has been 
recovering slowly. In the mean- 
time, it has chosen to ignore its 
target for broad money, whose 
growth this year has been far 
above the 4-6 per cent target 
range. In the last two months, 
however, the money supply has 
ceased growing, while the econ- 
omy has been picking up. As a 
result, pressure to cut interest 
rates has diminished. It is even 
possible that German interest 
rates are not far from their floor. 
This week's talk from the Bank of 
Japan about recovery suggests 
that file same is true there. 

Yet even if the global short-term 
interest rate cycle is near bottom, 
US and, for that matter, UK rates 
are almost certain to rise, relative 
to those in D-Marks and yen. In 
their myopic way, markets may 
suddenly notice this development 
If so, the story of the second half 
of 1994 might be the strength of 
the dollar, and even of the pound. 


The sounds of a 
continent cracking 

Michael Holman says the west must recognise its 
self-interest in dealing with the crisis engulfing Africa 



Constant 1987dofiar 
-1,000 

500 

Sub-Saharan Africa 

- 600 



Counfry Group 
mriefflan* 


Major armed 
conffcr- 


1380-80 1989-82 

Mnwiithlqpw ' *»' ■ ■ *■* 

Somafia yn yu 

'BtSajS*- . ym'- ' ' pm.' 

Liberia 'no JW» ‘ 

;Aoa«ib:? - ; ! . • - jf*i • 

Sudan yvs yn 

• Ncn-aaBe armed group* of ovw 1 ,000 lighten, to c on B ta uritt* atw 
•-Inwlvta mom fim1j0robaflfa-<niBtadds«ii«9«hgoMmnM<* teen 



Country 


AWtaty OkpandhuM 
* aa* of GDP - 


Avorua annual 
WortdBunk loans 

par capita® ■ 

ieaoe leseei 


% of total 
Watt Bank loans 


I860 1990. • ■ 1900c 1969*1 I960* 188M1 

Ethiopia - 102-77^ M 

***** ; v 

Zambia f.1 30 . . &7 02.7 05 04 


per cent annual rise in population. 
Unless Sub-Saharan Africa's “poor” 
economic policies improve, it will 
be 40 years before the region 
returns to its per capita facn m«> of 
the mid-1970s, says the Bank. 

Dissenting voices suggest ways 
out of the predicament “Mare aid!” 
cries one. 

But aid has increased and the cri- 
sis deepens. Net aid transfers to 
Africa increased from 5.6 per cent of 
regional GDP in the early 1970s to 
8.3 per cent in the late 70s, reaching 
U.7 per cent of GDP by 1990. Sub- 
Saharan Africa's share of global aid 
is up to 38 per cent in 1991 from 17 
per cent in 1970. A decade of struc- 
tural adjustment, and net aid flows 


of $17Dbn, has stemmed the region's 
riaourtp but not launched a revival. 

“Reform the international trading 
system,” cry others, pointing to 
Africa's deteriorating terms of 
trade. Perhaps, comes the response, 
but why has Africa lost its market 
share of cocoa, tea, coffee to other 
third world countries who live 
under the same system? 

“Foreign investment is the key,” 
say others. But who wQi invest in a 
continent where the infrastructure 
has deteriorated, skins are in short 
supply, and instability endemic? 

“Impose democracy by making 
aid conditional on good gover- 
nance," say western governments. 
But democracy isn’t working; and 


SourcMc VfdMBmetr Adjustment » Atfc* 
Human Dtmnpnwnt f»n»rt 1084 


the World Bank's report on the 
“east Asian miracle" suggests there 
is not necessarily a link, says 
another. 

What can be done? 

• First the World Bank, the conti- 
nent's leading donor, and the aid 
agencies must find common cause. 
Africa needs their vigorous lobby- 
ing of the west's decision makers. 
John Clark, who used to work with 
Oxfam, put it well in his book. 
Democratising Development • The 
Role of Voluntary Organisations. 
Non-governmental organisations, he 
says, “will make little headway 
unless their ideas are grounded in 
economic reality and unless they 
search for positive as well as nega- 


Food, water - and troops 

Edward Mortimer on how the world should aid Rwanda 


five lessons within the programmes 
of the World Bank and other practi- 
tioners of development orthodoxy." 

• Once there is agreement on the 
economic and political agenda, non- 
governmental organisations should 
play a greater role. In certain coun- 
tries, where the mangement capac- 
ity of government Is weak, NGGs 
.should run primary health care, or 
primary education, or drought 
relief. 

• The private sector should make 
investment decisions, rather than 
aid workers without the necessary 
Rkilla. 

• Increase transparency. Too often 
donors are willing to conceal what 
they know of corruption in African 
governments. They foil to insist on 
mhtlmuTO levels of accountability 
and access to information. By with- 
holding or denying African elector- 
ates information about structural 
adjustment programmes, they stifle 
debate about economic policy. 

• Constitution making. Hopes far 
the revival of democracy will be 
dashed unless Africa draws up con- 
stitutions which take account of 
ethnic, religious and regional differ- 
ences. Rebuild the parties and insti- 
tutions of democratic government. 
m Set levels of military spending at 
a percentage of GDP below spend- 
ing on housing, education and 

hoajth 

• Radical measures to ease 
Africa's debt burden should be 
accompanied by tougher monitoring 
of reform policies, including donor 
officials in institutions such as cen- 
tral h*»ilre an d, finanrai mfaiQfrjoq 

• If governments are not willing to 
embrace structural adjustment and 
good governance requirements, 
then donors should only finance 
humanitarian projects. 

Above all, the west must be moti- 
vated by self-interest as much as 
compassion in its response to the 
African crisis. Possible solutions 
will only be implemented when an 
ailing Africa is seen as a threat and 
as a loss. 

As Africa's economy declines, so 
immigration to southern Europe 
will rise; Moslem "extremism wfU 
intensify; drug-trafficking will - 
increase; disease, whether Aids or 
the discovery of bubonic plague in 
Zaire, will pose a serious health 
problem; environmental erosion or 
neglect will lead to the destruction 
of valuable flora and fauna. 

Africa cannot be ringfonced: and 
the longer a co-ordinated response 
to its crisis is postponed, the more 
daunting become the problems and 
more serious the consequences of 
failure. 


“The record is grim and it is no 
exaggeration to talk of cri- 
sis... Wutt is needed is a new kind 
of social compact an agreement 
within the world community that the 
struggle against poverty in Africa is 
a joint concern which entails respon- 
sibilities for both parties" 

- World Bank, 1981 

T he warnings have gone 
unheeded- Now come 
signs of a continent 
under intolerable strain, 
poised between crisis 
and catastrophe, lacking both the 
capacity and the will to implement 
economic and political reforms. 

Rwanda is the latest in Africa's 
roll call of disasters over the past 20 
years, during which at least I Dm 
people have died and as many have 
become refugees. For some govern- 
ments, the strain has proved too 
much. 

Zaire, almost straddling the waist 
of Africa, is less a state than a col- 
lection. of fiefdoms. Sudan, Africa’s 
largest country, has been destroyed 
by civil war, and Sierra Leone, 
Liberia, Somalia, Angola are joining 
them. Worse may be to come, for 
two of Africa’s most important 
countries are now at risk: Nigeria in 
the west and Kenya in the east are 
both, showing signs of stress. 

Nigeria’s leaders squandered 
$100bn of oil earnings over the 
decade of the oil boom from the 
1970s to the early 1990s. External 
debt, currently $34bn, rises by S6bn 
a year, the civil service is under- 
mined by political interference and 
corruption, per capita gross domes- 
tic product has halved since 1980, 
the fault line is deepening between 
Moslem north and Christian 
south. 

Meanwhile Kenya is battling 
against impossible odds. Its popula- 
tion has tripled over the past 20 
years to 25m, land hunger grows, 
unemployment rises, and 400,000 
school-leavers compete annually for 
20,000 jobs in formal employment 
Corruption and vested interests 
stand in the way of effective reform. 

Meanwhile Africa's rare “success 
stories” such as Ghana ar| d Uganda, 
are not inspiring: “Current growth 
rates among the best [emphasis 
added] African performers are still 
too low to reduce poverty much in 
the next two or three decades,” 
warned a recent World Bank 
review. 

The Bank's hopes, back in 1989. 
that African economies could grow 
at a rate of 4 to 5 per cant proved 
optimistic. Growth has been barely 
half that, well below the region's 12 


I t has happened again, and on 
the most horrific scale yet. 
True, tike absolute number of 
refugees displaced by the 
Afghan war was higher, but that 
problem built up over a period of 
years. 

In Rwanda, more than 2m people 
have fled into neighbouring coun- 
tries since April 6; most of them 
wi thin the past two weeks. And, as 
Boutros Boutros-Ghali, the UN sec- 
retary-general, said yesterday, 
“another million may be on their 
way”. If one adds the people dis- 
placed within the country, more 
than half Rwanda’s 7m people have 
been uprooted. 

As many of these people face 
death by starvation, or from chol- 
era and other diseases to which 
their resistance is lowered by mal- 
nutrition and lack of sanitation or 
clean drinking-water, clearly the 
first priority must he to get emer- 
gency aid to them, in the shape of 
food, medical supplies, water tank- 
ers and equipment for digging 
latrines- The UN yesterday issued 


an appeal to governments to pro- 
vide services “as self-contained 
packages'* in airport services, 
domestic fuel, sanitation facilities 
and water management 

The UN estimates financial 
requirements at about $435m, and 
is begging governments to make 
resources available without delay. 
It points out that this time it has 
succeeded in co-ordinating the 
efforts of all its specialised agen- 
cies and of some 30 non-govern- 
mental organisations - something 
governments blamed it for foiling 
to do In previous emergencies. 

At present, aid is not getting 
through Cast enough, because or the 
difficulty of reaching the refugees. 
Forty-five Hercules aircraft each 
day are needed to bring in food at 
Goma alone, says Nigel Twose, 


international director of the British 
charity Actionaid. After blaming 
the French for re s tri ctin g the num- 
ber of flights, the UN has now 
taken control of the airstrip at 
Goma, only to find it is the Zairean 
authorities which have Imposed a 
limit of 20 flights a day. One of the 
most urgent priorities is therefore 
to “persuade” them to relax that 
limit, and to put hi an expert team 
to maintain the runway so the strip 
can take flights around the dock. 

It is clear that humanitarian aid 
is not enough to cope with this 
situation. Indeed, it may make mat- 
ters worse if it is concentrated on 
or close to the borders, and thereby 
encourages the population to 
gather there in large concentra- 
tions where they will become per- 
manently dependent on interna- 


tional re]ief. It is vital to get people 
back to their homes quickly. 

This is also what the new govern- 
ment wants, and it therefore has a 
strong incentive to cooperate with 
the UN in reassuring people that 
they will not be massacred. But 
mere verbal assurances will hardly 
be enough. Aid should be made 
available inside the country to 
returning refugees, and there will 
have to be a visible presence of 
foreign troops to reassure them. 

The French deserve credit for 
saving thousands of fives in the 
area they have occupied. But many 
of the people who carried out the 
genocide against the Tutsi in April 
and May have taken refuge In that 
area, which the French now pro- 
pose to leave by August 22, taking 
all their e quipm ent with them. If 


they are to be replaced by ill- 
equipped African troops, it is vital - 
that they be persuaded either to 
leave or to replace their equipment, 
and that other countries with well- - 
equipped armed faces make good 
on the promise to provide equip- 
ment which they gave bade hi May. 

It would be even better if some of 
those countries were willing to 
send their own troops. 

Troops are necessary, but should 
be there only to stabilise the sltna- 
tion during a political recondite- : 
tiou process, which may be easier 
at local level, given strong commu- 
nity leadership, than at the top. 
Clearly the EPF will not forgive the. 
main Instigators of genocide, but It . 
should be helped by external pow- 
ers to set up an unimpeachable: 
judicial process; and it must be per- , 
suaded to limit retribution to the 
main instigators. If every Hutu 
with blood on bis or her hands . 
were to be hunted down, much of 
the population would choose to 
remain in exile and prepare for yet 
another “war of liberation”. 


MAN IN THE NEWS: Brian Lara 


Lara’s lucrative 
theme 


B rian Lara, the the phe- 
nomenon from Trinidad, 
broke another world 
record last week, landing 
the largest Individual corporate 
sponsorship contract ever awarded 
to a cricketer. 

Mercury Asset Management, the 
UK’s largest fund manager, has 
signed Lara to a two and a half year 
contract for £100,000. Its value could 
rise to £500,000 depending upon his 
performance on the cricket field. 
MAM has also informally agreed to 
make contributions to mostly Trini- 
dadian charities in Lara's name. 

This deal is unique in a sport in 
which the average England county 
cricketer earns £20,000 a year or 
less. Nick Leigh, a director of Bir- 
mingham-based Kennedy Street 
Enterprises, the agent for Ian 
Botham and Viv Richards, says It is 
worth paying Lara such sums 
because of the crowds he attracts. 
“You go to your average county 
cricket game and It's just one man 
and his dog," he says, adding Quit 
the attendance is perhaps 1.800. 

Denis Amiss, chief executive of 
Warwickshire, Lara's club, says 
gate receipts from crucial home 
matches are likely at least to double 
this year to £100,000. He says Lara's 
arrival added 900 members to the 
club, to take the total to 8,400. 

The conversion of Brian Charles 
Lara, cricket sensation, into Brian 
Lara, earnings sensation, occurred 
over several years, according to his 
agent, Mr Jonathan Barnett, direc- 
tor of Stellar Promotions. 

Lara is the youngest of 11 chil- 
dren of a close-knit family from the 
village of Cantar, Trinidad. Barnett 
says Lara got his first cricket bat at 
the age of six from an older sister 
who had spotted an advertisement 
in a local newspaper for the Har- 
vard Clime, where children were 


taught cricket 

Barnett first met Lara, then 22, 
during the West Indies tour of 
England In the summer of 1991. He 
was a junior player who never got 
onto the field, but even so, West 
Indian batsman Viv Richard haifad 
him as the nwi sensation from the 
Caribbean. 

Barnett, who used to run the 
sports promotion division of the 
foiled Levitt Group, was asked by 
Richards’ then agent David Cobb, 
to take Lara on as a client Rich- 
ards' own agent was leaving the 
business and could not do it him- 
self. “I went to see him up at 
Worcester,” Barnett said. “Viv 
introduced me to Brian Lara and 
said. This guy is going to be a 
star.’" 

Sponsorship came early. Since he 
was a teenage batting sensation in 
Trinidad, Angostura Bitters has 
been a backer, putting Lara on the 
payroll as a public relations consul- 
tant Smaller local firms have paid 
for coaching sessions and equip- 
ment. “The ones who sponsored 
him early we have kept on,” Bar- 
nett said “And we haven't raised 
the rates.” 

The first sponsorship deal 
arranged by Barnett was a $10, Good- 
year contract with Oakley, the US- 
based sunglass manufacturer, 
which also si gned similar contracts 
with two other Pakistani cricketers, 
both clients of Barnett. Although 
Barnett was unsuccessful in negoti- 
ating a sponsorship arrangement 
for Lara with BWIA, the West 
Indian airline, Lara was given the 
equivalent of £40,000 worth of free 
air miles for himself and his 
mother, Pearl. 

When shami Ahmed, chief execu- 
tive of Joe Bloggs sportswear, saw 
Lara step off an aircraft after his 
triumphant West Indies tour in 



April, wearing a Joe Bloggs shirt, 
he approached Barnett about a deaL 
Lara wears the company's jeans and 
T-shirts exclusively whenever he 
wears casual clothing, and the com- 
pany is marketing a line of shirts 
and trousers to capitalise on his 
batting score. 

It was Barnett who Initiated the 
deal with MAM. David Manasseh, 
Barnett's partner, said he spotted 
MAM’S use of vivid sports imagery 
In the company’s first-ever print 
advertising campaign and asked 
whether it would like a real sports 
superstar to promote its image. The 
answer was a resounding yes. 

But despite the higher profile that 
Lara has brought to the game and 
to bis sponsors, questions are being 
raised by sports commentators and 
other cricketers about the effect of 
the sponsorship contracts an Ms tal- 
ent He has been criticised in the 
press for taking out a mobile phone 
on the field, with commentators 
pointing out that one sponsor is a 
mobile phone company. 


Such actions have not endeared 
him to his team-mates , an ^ tbT Pflten 
to undermine the widespread public 
admiration for a man who, off the 
field. Is widely described as modest 
gracious and warm. 

Ted Dexter, former England team 
captain and former head of the 
England Test Match Selectors, says: 
‘Yes, there is such a thing as too 
much sponsorship. The fact is you 
can’t just turn playing concentra- 
tion on and off." 

However, he says, Lara will have 
to learn how to juggle his interests, 
Just like other leading sports figures 
such as Botham and David Gower. 
Dexter, who now heads a sports 
sponsorship firm bearing his name, 
is sympathetic. “Lara just wants 
financial security like the rest of 
us,” he says. 

Barnett dismisses the carping as 
“jealousy and naivete”, and says 
that all Lara's sponsorship activi- 
ties should not take up more than 
14 days a year in total. 

He argues that cricketers gener- 
ally suffer from a kind of collective 
public view - fostered by Bportswri- 
tars - that it is unseemly for them 
to earn large sums. He points out 
that the cricket players' union, the 
Cricketers’ Association, is funded 
by the Test and County Cricket 
Board, the owners' association, a 
relationship which limits the play- 
ers' ability to campaign aggres- 
sively for better pay and conditions. 

But If Lara continues to break 
world records, public sentiment is 
likely to endorse every penny he 
earns. In April, he broke the world 
record for the highest score in a 
Test innings when, playing for the 
West Indies, he made 375 against 
E ng lan d . In June, he hit a world 
record for a first-class innings, 501 
for Warwickshire, against Durham. 
He Is the first cricketer to hold both 
world records since Sir Donald 
Bradman, widely regarded as the 
greatest batsman of all time. 

Whatever deals Lara does, he has 
already made history. 

Nonna Cohen and 
W illiam Lewis 


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FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


7 


★ 


Wish they were there 


But such moments mingled with 
palpable exhaustion. The politicians 


MPs may be exhausted, but so is the 
British public, says Philip Stephens 


I t has been a week for fresh 
faces and new political 
images. We saw the broad 
smiles of the incoming mem- 
bers of the cabinet as they stepped 
into the sunlight from the door of 10 
Downing Street Then the delight of 
Mr Tony Blair as he was anointed 
the yoongest-ever leader of the 
Labour party. Even Mr Paddy Ash- 
down got Into the act by shuffling 
the portfolios of the Liberal Demo- 
crats rather smaller political foam 
There was talk at Westminster of 
new battle lines being drawn, of 
government and opposition parties 
marking out the ground on which 
they will fight the next general elec- 
tion. That may well be true. History 
may judge this week as the begin- 
ning of a new era in British politics. 

After all, who would have bet 
with any confidence three months 
ago that Mr John Major would look 
secure? And look secure at the very 
moment that Labour was choosing 
as its leader a 41-year-old public 
schoolboy committed to recasting 
socialism into social democracy? 

There was the odd dramatic 
moment also. Mr John Patten's dis- 
missal as education secretary 
been widely predicted. But no one 
was quite sure whether Mr Major 
would in the end have the courage 
to wield the knife. Mr Patten was 
devastated. 

Mr Blair's coronation likewise 
had been discounted. But the image 
of the young leader telling Ms party 
he now had a mandate to ditch its 
precious dogmas is one that will 
stick in the mind. So too will that of 
Mr Neil Kinnock. the man who res- 
cued Labour from extinction a 
decade ago, looking on with the 
bea min g satisfaction of a proud 
father. 


have fought themselves to a stand- 
still. The electorate has looked on 
with undisguised disgust. Used car 
dealers, even journalists, attract 
more trust nowadays than political 
leaders. 

Westminster is still disconnected 
from the real world. The pubs this 
weekend will not be buzzing with 
talk of Mr Jeremy Hanley’s eleva- 
tion to the Tory party c hairmanshi p 
or of Mr Blair’s promise of a cru- 
sade for change. 

The voters are a shrewder bunch 
than the self-assured Insiders who 
proclaim with absolute confidence 
that Mr Major is now safe; or that 
Mr Blair's middle-class accent guar- 
antees Labour victory in two dozen 
of southern England’s marginal 
constituencies. 

Real people are still angry with 
Mr Major's government, very angry. 
But they will need convincing that 
a man who was barely out of uni- 
versity when Labour last governed 
Britain can do a better job. 

Government and opposition face 
two more grinding years before a 
general election, which need not 
take place until the spring of 1397. 
As ministers and their opposition 
shadows prepared to clear their 
desks before heading for the 
beaches, you could almost feel them 
willing a summer of political peace. 

They hope politics will remain on 
hold until they regroup in Bourne- 
mouth, Blackpool and Brighton for 
their autumn conferences. There 
will be time «*poiigh t hen to begin 


persuading a wider world that 
things have changed. 

Mr Major’s government is bat- 
tered, demoralised but most impor- 
tantly still standing. The sensible 
people at the top of the government 
make no great claims for this 
week's extensive but uninspiring 
ministerial shakeout 

Journalists struggling to find a 
theme or a strategy were told not to 
waste their time. Reshuffles (with 
one or two spectacular exceptions) 
are not like that 
Mr Major's prior- 
ity was compe- 
tent government 

The shake-up 
was designed to 
advance that 
cause by reward- 
ing talent, pun- 
ishing mistakes 
and putting round pegs into round 
holes. It was also Intended to 
ensure that the Tory MPs left West- 
minster with the notion that Mr 
Major had at last restored his grip. 

The Tory right might claim that 
it had done better out of the 
changes than the centre-left. Cer- 
tainly the Thatcherltes were happy 
with the appointment of Mr Michael 
Portillo to employment and Mr Jon- 
athan Aitken as chiaf secretary. 

But, as usual. Mr Major built in a 
raft of checks and balances. Mr 
Hanley, the unknown choice to run 


the Conservatives' general election 
campaign, is a pro-European pro- 
tege of Mr Chris Patten, a former 
chairman and now governor of 
Hong Kong. Mr Kenneth Clarke, the 
centrist chancellor, still holds the 
economic policy levers. 

The economy is Mr Major's best 
hope. The latest statistics confirmed 
it is growing quite fast. Inflation for 
the time being looks subdued. The 
recent pace of Mia in unemploy- 
ment is unlikely to be sustained. 

but those in work 
should begin to 
feel a bit more 
secure. 

But the econ- 
omy won't be 
enough. The gov- 
ernment cannot 
risk another reck- 
less boom of the 
sort that puts real money in the 
voters' pockets. Some time soon Mr 
Clarke is going to have to raise 
interest rates. 

The chancellor is less certain 
than almost everyone else in the 
Tory party that the public finances 
will improve sufficiently to allow 
him to bribe file voters with large 
cuts in income tax in 1995 or 1996. 

Mr Major needs a prospectus, a 
theme, something that will per- 
suade the nation he has an interest 
beyond clin g in g to office. He has 
been searching for one almost from 


the moment he entered Downing 
Street. But the Citizen's Charter 
will not do. Nor will Back to Basics. 
At this autumn’s party conference, 
he needs to ignore the gimmicks 
and aim for both clarity and depth. 

As for Mr Blair, so far he has not 
put a foot wrong. His promise this 
week was both to excite the elector- 
ate and to reassure them: excite 
them with the notion that Labour is 
the party of the change; reassure 
them with the promise It has aban- 
doned its past Almost unnoticed he 
borrowed a phrase from left-of-cen- 
tre Toryism to encapsulate the mes- 
sage. We now have One Nation 
Socialism. 

He is an attractive figure. The 
comparisons with Kennedy and 
Clinton are not as silly as they 
sound. He is much tougher than he 
looks: the sort of politician who 
leaves you feeling slightly uneasy 
as depth of his amb ition sinks 
in. And for the first time in living 
memory Labour has a leader who is 
shaping the framework of political 
debate. 

Mr Blair is right to judge that 
Labour wins elections when it has a 
capacity to inspire the electorate. 
But despite the convincing nature 
of his victory (another powerful 
image was of the party’s trade 
union paymasters relegated to the 
back of toe hall as the result was 
announced), he must give substance 
to his philosophy. Voters can be 
enthused by ideas and by values. 
But they need policies to put them 
into c o ntext 

That leaves Mr Ashdown. It has 


Blair is a politician 
who leaves you 
feeling a bit uneasy, 
as the depth of his 
ambition sinks in 



been a dismal few weeks for the 
Liberal Democrats. The party's dis- 
appointing performance in the 
European elections last month has 
led toe Westminster intelligentsia 
to write it off. Why should toe mid- 
dle managers of Basingstoke vote 
for Mr Ashdown, when Mr Blair is 
every bit as moderate? 

It's an unfair assessment. The 
third party frequently has pros- 
pered alongside a Labour resur- 


gence. But Mr Ashdown needs to 
carve out a more distinctive niche - 
and to abandon toe fiction that bis 
party could just as well do a post- 
election deal with toe Conservatives 
as with Labour. 

Such decisions though can wait. 
For now, Mr Major, Mr Blair and Mr 
Ashdown should pause to enjoy 
their summer break. They can be 
certain the voters will not miss 
them. 


Life with a frisky watchdog 


C ity of London watch- 
dogs have been snap- 
ping with particular 
vigour this week. 
They almost seem to have been 
competing to see which could 
be toughest on the financial 
organisations they regulate. 

Two household names - 
Nationwide Building Society 
and Barclays' Life - have been 
bitten over the past few days, 
and there are rumours that 
others may become victims. 

On Tuesday came the news 
that a visit from Lautro, the 
self-regulatory organisation for 
the life insurance industry, 
had led Nationwide, the UK's 
second-largest society, to bar 
temporarily its 1,300 financial 
services staff from giving 
financial advice. 

The next day. the Securities 
and Investments Board, the 
City's chief regulator, gave a 
rare public rebuke to Barclays' 
Life, toe life and pensions arm 
of the high street bank, for 
shortcomings in the training 
and supervision of its 1.000- 
plus staff. 

Such actions are signs of a 
toughening in regulators’ atti- 
tudes towards the organisa- 
tions they supervise, and have 
been welcomed by some of 
those who have previously crit- 
icised the watchdogs for being 
too lenient. 

For instance, after Lautro’s 
visit to Nationwide, Mr Step- 
hen Locke, director of policy at 
the Consumers' Association, 
commented: “We're disap- 
pointed that the regulator did 
not do it earlier, but it’s better 
late than never." 

The irony is that the burst of 
disciplinary activity by Lautro 
- which has fined more organi- 
sations in toe first half of this 
year than in either 1992 or 1990 
- will not stop its being put to 
sleep next year. 

Its successor, the Personal 
Investment Authority, began 
operations at the start of the 
week. The PIA was set up after 
a long debate about reforming 
a widely-criticised system in 
which regulation of retail 
financial services is split 
between Lautro and Fimbra. 
which supervises independent 
financial advisers. The division 
led to complaints of inconsis- 
tent standards. 

Another criticism of the old 
regime was that the regulators 
were too close to the industry 


Alison Smith on a bite back by 
UK financial services regulators 



they supervise. Such concerns 
were revived this week when a 
leaked memorandum about a 
Lautro inquiry Into the selling 
by Prudential Corporation, the 
UK's largest life insurer, of per- 
sonal pensions to people trans- 
ferring out of occupational 
schemes, had suggested that 
Prudential was trying influ- 
ence its regulator. 

But even though toe argu- 
ments for reforming the old 
system remain compelling, the 
outbreak of activity by Lautro 
has highlighted two broad 
problem areas that mean the 
transition to the PIA is 
unlikely to be smooth: 

First, by il- 

lustrating how 
even household 


effec tiv e. If it fails to make its 
mark swiftly, a move to a 
full-blown statutory system of 
regulation is likely to return to 
toe agenda. 

The first of these two prob- 
lems Is the more serious, espe- 
cially since the sector already 
Hasan image problem. Mr Jim 
Stretton, deputy managing 
director of Standard Life, the 
UK’s largest mutual insurer, 
believes toe retail financial ser- 
vices industry is In a vicious 
circle: “Each fine, far from 
increasing public confidence 
that the system is working, 
awakens more suspicions in 
people's minds." 

Similarly, Mr 

‘The danger with 2 »“b& S< *S 


names such as the Way it happens pensions gen- 

Barclays have nnw it 1 arm eral manager 

got it wrong, now is mar u loses at Norwlch 

the discipline a lot OI confidence Union, which 
imposed this j n 5 11 <| 11 ctrv' received a 
week has re- m me mausiry record £300,000 
inforced wide- fine from Lau- 


spread public concerns about 
standards of selling to private 
investors. 

Second, it raises the question 
of whether the PIA, like Lautro 
which was set up in 1986, will 
take several years to become 
effective. Given the contro- 
versy it has already attracted, 
the new regulator could not 
afford such a delay: it has 
already been snubbed by Pru- 
dential - which exercised its 
right to be regulated directly 
by the SIB. Even some of the 
companies that applied to join 
the PIA believe it will not be 


tro in April, says: “The danger 
with the way it’s currently 
happening is that it loses a lot 
of confidence in an industry 
which is really needed 
. . . There is a risk of people 
being frightened away from 
Inn king after their future." 

He is confident, however, 
that an effective regulatory 
regime is the long term answer 
to the industry’s problems, 
even if that means short term 
discomfort for practitioners. 
For example, he believes that 
the PIA's application of Lau- 
tro’s training standards, which 


are seen as more stringent 
than those of Fimbra, across 
the industry will be important 

Many in toe finan cial ser- 
vices industry also believe 
there wfil be benefits simply 
from having a different regula- 
tor able to make a fresh start 
and weed out organisations 
which do not meet the 
new, higher standards being 
set 

Other life company execu- 
tives believe that the publicity 
surrounding disciplinary 
action has begun to make 
senior managers and directors 
pay detailed attention to meet- 
ing regulatory requirements. 
As Mr Steve Maran, chief exec- 
utive of Lloyds Abbey Life, 
puts it: “My board wants to 
discuss compliance issues at 
every meeting." 

Mr Gareth Marr, deputy 
chairman of Fimbra, believes 
that many in the industry have 
altered their attitude towards 
complying with regulatory 
requirements, but the differ- 
ence will take a while to show. 
“They have learnt that they 
can’t get away with it any 
more," he says, “but the 
change doesn't happen over- 
night". 

That change in attitudes 
leads many executives in the 
industry to believe that, 
despite the uncertainties 
caused by toe shift to a new 
regulator, the PIA will not face 
the same regulatory learning 
curve that both Lautro and 
Fimbra experienced. The PIA 
has already been tough enough 
to float the idea of imposing 
fines on individual board mem- 
bers of errant financial ser- 
vices companies. 

Although the PIA is new, 
many of its staff come from the 
existing watchdogs. “The PIA 
has involved an enormous 
amount of people's energy but 
at least it has the benefit of 
staff who should be able to 
build on Lautro's work without 
losing too much momentum," 
says Mr Locke of toe Consum- 
ers’ Association. 

But toe PIA does not have 
mucb time. Mr Marr believes 
that it has only until the gen- 
eral election in 1996 or 1997 to 
prove itself effective, or find 
itself replaced by a statutory 
regulatory regime. As a watch- 
dog. it must be a cross between 
rottweiler and greyhound. 


T his has been toe week that Silvio 
Berlusconi lost his political vir- 
ginity. 

For a man who has spent more 
than 35 years as a businessmen and less 
than six months as a politician, it was 
always a possibility that the I talian prime 
minister’s political inexperience would 
trip him up. But few imagined Mr Berlus- 
coni coaid commit such elementary 
errors. 

Trying to harry through a clumsy 
reform of Italy’s system of preventive 
detention, he brought his right-wing 
coalition government close to collapse as 
alliance partners disowned his actions. 
The situation was only saved by the with- 
drawal of toe legislation at toe expense of 
humiliating Mr Berlusconi. 

“The question now is whether Berlus- 
coni can learn from his mistakes and put 
the Incident behind him." observed one of 
his supporters, who has been dismayed by 
the prime minister’s recent performance. 
“His image and his self-confidence have 
taken a beating: hut we can’t tell yet 
whether he has been permanently 
knocked off-course." 

Ironically, television, the medium 
which launched Mr Berlusconi, has 
become the instrument of his embarrass- 
ment. A man who M|1 establish himself 
with extraordinary success in the public 
eye as a charmer and a winner, looks 
vulnerable when the smile disappears and 
political setbacks take their toll. 

Television viewers have seen Mr Berlus- 
coni oscillate between hurt pride, grim 
frustration and cold fury. He was even 
close to threatening his resignation in a 
nationwide television broadcast on Tues- 
day. The TV cameras were summoned to 
toe prime minister’s office but stood down 
at the last moment when Mr Umberto 
Bossi, the astute leader of the populist 
Northern League, promised to pull his 
party out of the coalition government if 
the broadcast went ahead. 

Yesterday, In a calmer mood, Mr Berlus- 
coni admitted, he suffered from possessing 
too much self-confidence, hinting that an 
element of hubris bad set in. 

But almost in the same breath he was 
talking revenge: “As of Monday, HI be 
telling Italians the real story . . . Yon’JI 
then see this affair will boomerang for 
many people." 

The warning seemed addressed not 
merely to the League, which shamelessly 
reneged on its cabinet endorsement of the 
preventive detention decree to enfeeble 
Mr Berlusconi. It was also aimed at the 
press which this week sensed the prime 
minister’s weakness and turned hostile 
after giving him a two month honeymoon. 

So far no one - neither Mr Berlusconi, 
his entourage. Us coalition partners or 
his opponents - has come up with an 
adequate explanation for the prime minis- 
tor’s awkward behaviour. 

After being In government only two 
months it seems improbable that Mr Ber- 
lusconi should have been in such a hurry 
to tackle the judiciary’s abuses of their 
powers of arrest and Imprisonment It is 
also bard to understand bow someone so 


Lessons 
learnt the 
hard way 

Robert Graham 

seeks explanations 
for Berlusconi’s 
political troubles 



Berlusconi: calmer, but talking revenge 


sensitive to public opinion would approve 
a decree that allowed out of prison busi- 
nessmen and politicians who have become 
figures of hate for their involvement in 
large-scale corrupt practices. 

Maybe toe cabinet was unaware of these 
consequences and Mr Berlusconi focused 
on correcting toe genuine excesses of the 
magistrates who have used imprisonment 
to extract confessions. Critics suggest Mr 
Berlusconi may have been concerned to 
protect his own Fminvest media empire 
from closer judicial inspection - though 
he would dismiss such claims as ground- 
less. Yesterday advance extracts from two 
weekly magazines. L "Espresso and Pan- 
orama, suggested the Milan magistrates 
who resigned in protest over the decree 
were investigating toe links between a 
member of toe Guardla di Finanza (the 
financial police) arrested in April on cor- 
ruption charges, and Fininvest’s tax 
department. 

But even an element of self-interest 
does not fully explain an action which has 
caused Mr Berlusconi such discomfort. 
Part of his self-inflicted damage undoubt- 
edly came from overestimating his skills 


as a politician and a communicator in toe 
wake of bathing in the international pub- 
licity of a successfully hosted G-7 summit. 

A more complete explanation must 
come from toe kind of advice the media 
magnate turned politician has been get- 
ting from his close circle of associates. Mr 
Berlusconi entered politics in January 
surrounded by a small group of friends 
who were all either directly or indirectly 
linked to Fininvest. They are still with 
him and have had to change from protect- 
ing Mr Berlusconi's interests as owner of 
Fminvest to looking after these interests 
as prime minister. 

In any circumstances toe metamorpho- 
sis from being courtiers and managers to 
executive politicians is a big adjustment 
But to make this change at a time when 
Italy has seen its traditional parties col- 
lapse and complex decisions are needed 
on economic policy and reform of Italy's 
institutions requires a team of excep- 
tional calibre. It is arguable whether they 
are up to the task. Few have direct politi- 
cal experience beyond this year. The 
group includes: 

• Mr Gianni Letta, former editor of 
Tempo, tbe daily linked to the Rome 
Christian Democrats, and now the chief of 
staff in the prime minister’s office- He 
joined Fininvest as Mr Berlusconi’s “dip- 
lomatic" representative in Rome at the 
crucial moment in the late 1980s when he 
was lobbying for foil commercial televi- 
sion licences. 

• Mr Marcello DelTUtri, the manager of 
Publitalia, Fininvest’s advertising arm 
and friend of Mr Berlusconi's since stu- 
dent days. He was instrumental in encour- 
aging Mr Berlusconi to enter politics and 
helped organise Forza Italia as a political 
movement through the Publitalia net- 
work. 

• Mr Fidele Confalonieri, the chairman 
of Fininvest, another friend of student 
days who helped Mr Berlusconi found his 
business empire. 

• Mr Cesare Previti, Mr Berlusconi's 
lawyer with a reputation as a successful 
intermediary between business and gov- 
ernment who is now defence minister (Mr 
Berlusconi was talked ont of making him 
justice minister). 

If the government coalition were cohe- 
sive. Mr Berlusconi would probably have 
felt more comfortable with a larger circle. 
But tbe two main partners, toe League 
and the ne&fascist MSI/National Alliance 
of Mr Gianfranco Flnj, are constantly 
afraid they will become submerged by the 
force of Mr Berlusconi's personality and 
accumulated authority. This makes Mr 
Berlusconi wary of Mr Ftni and openly 
mistrustful of the League. 

As a result his kitchen cabinet, though 
by no means unanimous, has encouraged 
Mr Berlusconi to assert himself - hence 
his various confrontations with Mr Boss! 
that reached a climax this week. 

If Mr Berlusconi wishes to survive, he 
may have to adopt a more collegiate 
approach to government In this way, if 
the League challenge’s him again, the 
blame for any public embarrasment could, 
unlike this week, be shared more evenly. 


The right time to improve 
financial services rules 


From Hr S li’ Hand. 

Sir, The decision of Mr Jus- 
tice Ughtman to dismiss the 
action for damages by Melton 
Medes against the Securities 
and Investments Board consti- 
tutes an important clarification 
of the regulator's powers. 

However, the case is ironic 
for drawing attention to the 
inadequacy of SIB's powers 
under Section 179 of the Finan- 
cial Services Act This section 
is excessively restrictive in 
that it prevents the SIB from 
releasing prescribed informa- 
tion to private litigants ("cus- 
tomers" in financial-services 
parlance) in the position of the 
plaintiff beneficiaries in the 

Melton Medes case, even if a 
court order had been obtained. 

This issue gave rise to great 
concern among members of the 
social security committee 
when they were interviewing 
Prof Roy Goode in connection 
with the report of the pension 
law review committee. The 
report of the PLRC noted: "The 
ability of existing regulators to 
exchange information among 
themselves is severely handi- 
capped by statutory restric- 


tions on toe use for one regula- 
tory purpose of information 
obtained for another." 

Prof Goode's committee rec- 
ommended that such statutory 
restriction should be removed 
and the government has 
embraced this principle in its 
recent white paper. 

However, this would not rec- 
tify the problem which relates 
not only to toe exchange of 
information between regula- 
tors but also between regula- 
tors and private litigants. 
There is a clear need for legis- 
lation in this area empowering 
the courts to direct the release 
of information held by a regu- 
lator to any person toe court 
deems appropriate. 

Given that the government 
has recently published its 
white paper on pensions and is 
in the process of preparing the 
pensions biff now would seem 
to be a good time to improve 
the interaction of regulatory 
rules and trust law principles. 
S W Hand, 

specialist adviser, social secu- 
rity select committee, 

Dibb Lupton Broomhead, 

125 Loizdon WalL London EC2 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 
Fax 071 873 5938. Letters transmitted should be dearly typed and not hand written. Please set fax for finest resolution 

Sensibilities blunted by years of welfare 


From Mr Dominic Hobson. 

Regular readers of Joe Roga- 
Iy’s column do not doubt that 
he is fired with the anger of 
the disinherited. Be is right to 
remind us of the deterioration 
in the material conditions of of 
the poor since 1979. 

But in arguing that “The 
Tory right cannot easily per- 
suade us that kindness, the 
essence of charity, figures in 
its calculations ”, he perpetu- 
ates the common- 
est fallacy of collectivist 
thinking. 


The willingness of politicians 
to advocate toe redistribution 
of the income and wealth of 
others, and of their supporters 
to vote for it, is not moral, nor 
kind, nor altruistic, nor chari- 
table. 

It is merely tbe coercion and 
expropriation of one sect- 
ion of toe population by an- 
other. 

“We can never have regard 
to the virtue of an action.’ 1 as 
David Hume reminds us in A 
Treatise of Human Nature, 
“unless the action be anteced- 


ently virtuous. No action can 
be virtuous, but so Ear as it 
proceeds from a virtuous 
motive." 

In social welfare, the authen- 
tic moral choices are those 
which men and women mafcw 
with their own time and 
money and not those which 
they are compelled to make by 
the state. 

The virtuous do not merely, 
abide by the law but exercise 
their moral faculties and per- 
sonal judgment. 

Unfortunately, the state now 


takes such a large proportion 
of personal incomes, and 
monopolises so many aspects 
of welfare, that both toe oppor- 
tunity and toe means of mak- 
ing personal moral choices 
have quite shrivelled up. 

It is 50 years of toe welfare 
state, not 15 years of Thatcher- 
ism. which has blunted our 
sensibilities. 

Do minic Hobson, 

62 Manchuria Road, 

Battersea, 

London 
SWll 6AE 


Subsidies would create opportunities for apprentices 


From Mr Alasdair 

MacConachie. 

Sir, As a motor retailer and a 
private company, employing 75 
technicians in our after-sales 
activity, I feel very strongly 
that if the government or 
Training and Enterprise Coun- 


cils were to put more resources 
behind the training of appren- 
tices, there would be great 
opportunity for training young- 
sters. 

The motor trader apprentice 
scheme is regarded as one of 
the best available. Many of us. 


however, cannot afford to 
invest as much as we would 
like in the development of 
yOting technicians 
If there was reasonable sub- 
sidy hghjnd apprentice training 
I am sure you would see signif- 
icant numbers of school leav- 


ers being given an excellent 
opportunity. 

Alasdair MacConachie, 
managing director, 

Sherwoods, 

Chestnut Street, 

Darlington, 

Co Durham DL1 1RJ 


Focusing on successful 
technological innovation 


From Mr John Dodd. 

Sir, The article by Tom For- 
emskt, “When IT fails to mea- 
sure up" and Guy de Jon- 
qirieres’ argument against the 
benefits from investment in 
high technology, raise crucial 
issues. 

One of the less well publi- 
cised results of toe EU Corfu 
summit was tbe acceptance of 
the Bangemann report, the 
thrust of which Is that rapid 
deployment of the information 
society' is central to Europe’s, 
and therefore toe UK’s, com- 
petitiveness. 

At the heart of toe issues 
being raised is toe insufficient 
understanding by business 
managers of toe implications 
of the technology they are 
using and technologists' lad: 
of awareness of the business 
implications of what they are 
developing and installing. 
(This, incidentally, is one of 
the causes of the UK’s ability 
to innovate but relative inabil- 
ity to capitalise on innovation.) 

The FEL the trade associa- 
tion for the electronics indus- 
try, is stepping up its efforts to 
address these issues. Two 


areas come to mind for action. 

First European and UK gov- 
ernment sponsored research 
and development. Here, the 
focus continues to be heavily 
on new technological projects 
with less attention paid to the 
processes in the technical com- 
munity which move projects to 
practical application. Virtually 
■ no attention is focused on toe 
behaviourial, management and 
social inhibitions to successful 
implementation. 

Second, UK educational pol- 
icy lacks those elements that 
will enable people to imple- 
ment technology for business 
benefit and to understand toe 
importance of creating value 
and commercial success. 

If these are not the right 
issues we need to find those 
that are. We cannot afford to 
continue with either the reality 
or a perception that the mil- 
lions poured into TT and other 
high technology is wasted. 
John Dodd, 
director, ICT, 

FBI, 

Russell Square House, 

10-12 Russell Square, 

London WC1B SEE 


8 


FINANCIAL. TIMES WEEKEND JULY 23/JULY 24 1994 


COMPANY NEWS: UK 


From price war to bid battle? 

Neil Buckley on the likelihood of J Sainsbury entering a fight for control of Win Low 


A counter-bid next week 
by J Sainsbury to Tes* 
co's agreed bid for Wm 
Low, the Scottish supermarket 
group, is widely expected by 
the City, but some analysts 
remain doubtful that the UK'S 
biggest food retailer will enter 
the fray. 

Ever since Tesco, the UK 
number two, unveiled a recom- 
mended bid worth a total of 
E200m for the Scottish chain 
nine days ago, speculation has 
been rife about a bidding war, 
Tesco’s 225p a share bid val- 
ues Wm Low at £154m, and It 
would assume debt of just over 
ESOm. Low's shares closed up 
3p at 265p yesterday, in the 
clear expectation that either 
Sainsbury would enter the 
game, or Tesco would be forced 
to raise what Is now being seen 
as a low offer. 

Wm Low, which has 57 
stores and 6 per cent of the 
Scottish market, confirmed on 
Monday that it had responded 
to a request for information, 
from Sainsbury. 

Sainsbury might have been 
taking advantage of UK com- 
pany regulations during take- 
over bids to gain information 
about a competitor. But the 
City has interpreted its silence 
this week as a sign it was 
weighing up a bid. 

There are, however, two 
main, reasons why Sainsbury 
might not make such a move. 

One is corporate culture. A 
hostile bid would be out of 


Argyll changes 
stockbroker 

Argyll, the UK'S thlrd-largest 
grocery retailer, has replaced 
Warburg Securities with BZW 
as its stockbroker. BZW will 
be joint brokers with Pamnure 
Gordon. No reason was given 
for the move. Argyll, however, 
has long been thought to be 
not entirely comfortable about 
Warburg also being broker to 
j Sainsbtuy. 


character for a company that 
retains some of the ethos of a 
family business. 

But while such a move might 
have been unthinkable for 
Lord Sainsbury of Preston Can- 
dover, the patrician former 
chairman, many analysts 
believe Mr David Sainsbury, 
his cousin and successor, 
would have few qualms - pro- 
vided be thought it made com- 
mercial sense. 

That is the second, and more 
likely, reason why Sainsbury 
might hold back. The group 
indicated strongly when 
announcing its results in May 
that the US was the likely 
venue for expansion. Rumours 
have been circulating this 
week that Sainsbury may be 
closer to making a US buy 
than previously thought, and 
may wish to save its money. 

Set against that are strong 
commercial arguments for 


expanding into Scotland 
which, unlike much of 
England, is under-provided 
with superstores. 

Only Argyll, whose Safeway 
and Presto chains have 16.6 per 
cent of the Scottish market 
according to research group 
AGB, and Asda with 122 per 
cent, have a significant pres- 
ence. Co-operative societies 
have &9 per cent, but small 
independent grocers dominate 
many areas. 

Sainsbury, which has per 
cent and until last year had 
only one superstore in Scot- 
land, has firm intentions to 
expand there. Its first super- 
store in Edinburgh last year 
was one of its most successful 
openings in years. 

But expansion has been diffi- 
cult. It has been outbid by 
Safeway for two prime sites, 
and fought battles with Glas- 
gow city council and Strath- 
clyde regional council over 
planning permission for others. 

Buying Wm Low would be a 
quick way of more than dou- 
bling Salisbury's Scottish mar- 
ket share. The same logic, of 
coarse, attracted Tesco, which 
has a 7.1 per cent market share 
in Scotland. 

Analysts believe either group 
could enhance the performance 
of Wm Low stores by cutting 
overheads and absorbing them 
into their business, and the 
purchase could add about 5 per 
cent to their pre-tax profits. 

Many believe Sainsbury has 



DngrHuifMM 

David Sainsbury: any bid would have to make commercial sense 


nnfhfag to lose by bidding. Tes- 
co’s offer is seen to price Wm 
Low cheaply, with Bell Lawrie 
White, the Scottish broker, 
valuing its assets at 245p a 
share. 

If Sainsbury were to be suc- 
cessful with a bid at 260p or 
270p, the market would still 
consider that a good price. 

If Tesco responded by raising 


its bid to 2S0p or 300p, Salis- 
bury would have the satisfac- 
tion of having forced its rival 
to pay an extra £60m. Alterna- 
tively, Sainsbury could launch 
a "knock-out" blow of 300p or 
more, to tan’' to ensure victory. 

H [ can't see the downside for 
them in bidding,” said one ana- 
lyst “They won’t want to see 
Tesco get it on the cheap.” 


TT makes agreed £16m 
offer for Dale Electric 


By David Wighton 

Dale Electric, the North 
Yorkshire-based generator 
manufacturer, has agreed a 
£16m bid from TT Group, the 
acquisitive conglomerate. 

TTs offer of 70Kp a share 
cash is recommended by the 
directors headed by Mr Iain 
Dale, chairman, who have 
accepted the terms for their 3.5 
per cent holding. TT already 
owns a further 3.5 per cent. 

Mr Dale expressed sadness 
that the company was giving 
up its independence after 59 
years but said it needed to be 
part of a bigger group to sur- 
vive in increasingly competi- 
tive international markets. "In 
the last 10 years we have not 
been able to offer consistency 


of profits and the best way for- 
ward for the business is from 
within another group.” 

The company was founded In 
1935 by Mr Dale's father Leo- 
nard, a milkman and cinema 
projectionist. After enjoying 
strong growth in the 1970s, 
Dale was hit bard by the reces- 
sion in the early 1980s and 
more recently by the downturn 
in aviation markets and unfa- 
vourable exchange rates. 

Dale's results for the year to 
May 1, released yesterday, 
showed sales down from 
£60. lm to £48m, of which half 
were exports, and a pre-tax 
loss of £4.15m (£L34m profits). 
This was struck after £3.44m of 
exceptional charges and 
£926,000 of interest. 

The company returned to an 


operating profit in the second 
half but Is not paying a final 
dividend. 

Mr John Newman, joint chief 
executive of TT, said he was 
happy that Dale's finances had 
been "cleaned up” and was 
confident that returns could be 
improved rapidly. He could not 
comment on prospects for the 
group's 700 employees but said: 
“Our intention is to grow the 
business.” 

In 1987 Dale fought off a bid 
worth 136p a share from Sun- 
leigh and the shares reached a 
high of 147p in 1980. They 
closed at 61p, up Ip, yesterday 
before the bid was announced. 

As an alternative to cash IT 
is offering one of its shares for 
every five Dale, valuing each 
at 70 Jp. 


Warner Estate in 
deal with Merivale 


By Peter Franklin 

Warner Estate Holdings 
yesterday announced it was to 
take a 20.5 per cent stake 
in fellow property company. 
Merivale Moore. 

The gharriirtlriing will result 
from the issue by Merivale to 
Warner of 3£m new shares as 
part consideration for a £fim 
portfolio of commercial proper- 
ties, typically high street 
shops, being purchased by 
Merivale. 

The shares will be priced at 
90p apiece or a sum equal to 90 
per cent of the pro forma net 
asset value of Merivale at June 
30, whichever is the lower. The 
balance of the consideration 
wm be payable in cash. 

Merivale has suffered two 
years of losses, but returned to 
the black in the half-year to 


end-December 1993 with a pre- 
tax profit of £133,000. 

The company has been fol- 
lowing a strategy of disposing 
of low or non-income pro- 
ducing assets and concentrat- 
ing on building investment 
income in higher yielding 
industrial and retail invest- 
ments. 

In May this year it sold its 
remaining two office buildings 
at Vision Park, Cambridge. 
This holding had dominated 
the portfolio, accounting for 
some 25 per cent by value 
while contributing just £250,000 
of income in 199394. 

Merivale now has a small 
exposure to property develop- 
ment and a limited involve- 
ment in the residential sector. 

Merivale shares closed up 
lip to 71p. Warner’s shares 
were unchanged at 243p_ 


. ,i 

Novopharm sues Glaxo in ’j, 
dispute over drug formula ;J 


By Daniel Green 

Glaxo, Europe's biggest drugs 
company, was sued yesterday 
for $300m (£l94m) in potential 
lost sales and punitive dam- 
ages by Novopharm, a Cana- 
dian company. Glaxo shares 
fell 14p to 574p. 

Novopharm’s action was an 
immediate response to a Glaxo 
suit alleging patent infringe- 
ment by the Canadian com- 
pany. 

At stake are the $l.9bn a 
year US sales of the world's 
biggest selling drug, Glaxo's 
ulcer treatment, Zantac. 

The dispute centres on the 
fact that Zantac is protected, by 
two patents, one that expires 
in the US at the end of 1995 
and the other in 2002. 

The two patents refer to 
slightly different forms of Zan- 


tac’s active ingredient, forms 
one and two. The Zantac Glaxo 
sells is based on form two. 
Novopharm wants to sell form 
one after 1995, but Glaxo says 
that the Novopharm product 
infringes form two patents. 

By taking patent action 
under US law, Glam wifi delay 
the launch of Novopbam's 
drug by 30 months, well past 
the expiry of the form one 
patent. This would hare the 
effect of extending the period 
during which Zantac is pro- 
tected from competition and 
led yesterday to the statement 
by Mr Leslie Dan, Novo- 
pharm’s chief executive, that 
the action by Glaxo is totally 
frivolous". 

Novopharm’s countersuit 
"claims huge damages based 
on any potential loss of sales if 
the product Is delayed in its 


marketing beyond December 
1995," said Mr Dan. 

Glam said that the counter- 
suit "was not unexpected" and 
reiterated its belief that it had 
a good case. 

Two months ago, Glaxo took 
s i mi l ar patent action against a 
subsidiary of Ciba, the Swiss 
drugs company which, like 
Novopharm, said it wanted to 
sell form one from 1996. Ciba 
did not counter sue. 

Glaxo added yesterday that 
it had “discovered" that form 
one tablets were on sale in 
Denmark and New Zealand 
where the patents protecting 
Zantac are weaker. It is study- 
ing samples and looking for 
ways to invoke patent laws. It 
said it continued to believe 
that it was not possible yet to 
make form one without 
infringing form two patents. 


Failed bid throws spotlight on c* 
dual roles of Enterprise chief 


By Peggy Hontnger 

Mr Graham Hearne is expected 
by the end of the year to sur- 
render his role as chief execu- 
tive of Enterprise Oil, the 
independent oil company 
which earlier this month failed 
to take over rival explorer 
Laamo with a controversial 
£L6bn bid. 

Institutions are thought to 
be keen to take the opportu- 
nity presented by the failed bid 
to press Mr Heame for an early 
division of his roles as chair- 
man and chief executive. 

Mr Hearne, who is to retire 
In three years at 60 - the com- 
pany’s normal retirement age 


- had previously indicated he 
would relinquish one of the 
posts at some stage. 

“If he bad not tripped up he 
would have got away with It," 
said one investor. “Having 
tripped up, it is another story." 

Institutions are also tKnnght 
to be strongly advocating that 
an outsider should fill the chief 
executive's post This would 
appear to rule out Mr Michael 
Pink, the former Shell execu- 
tive who was appointed as 
Enterprise's chief operating 
officer in May. 

"It has to be an outsider to 
be meaningful," said one insti- 
tution. "Everyone inside the 
company owes too much to too 


many people to be really inde- 
pendent" 

There was some speculation 
In the industry and the City 
that Mr Sam Laldlaw, manag- 
ing director of Amerada Hess, 
the US oil group, or Mr Lance 
Johnson of Mobil Oil could be 
possible candidates. 

Mr Laldlaw yesterday 
refused to comment He said, 
however, that speculation of 
an approach from Enterprise 
was “without foundation". 

Mr Andrew Shilston, Enter- 
prise's finance director, said 
the company had not had 
discussions with anyone 
regarding the chief executive's 
post 


UK Safety shares fall on warning 


,'JITKt 


By Caroline Southey 

A profits warning from UK 
Safety Group, the Bristol- 
based specialist shoe maker, 
knocked 14p off the share price 
yesterday which closed at 
51p. 

Mr John Newman, finance 
director, said full-year results 
would fall short of market 
expectations. 

Operating margins were 
under pressure in a highly 
competitive market and the 


price of leather had also been 
rising steadily. 

The volume of Ministry of 
Defence sales, which make up 
16 per cent of turnover, were 
down although despatch levels 
to the MoD in the second half 
were closer to plan. 

But, he said, the company's 
manufacturing and selling 
organisations had been res- 
tructured to cut operating 
costs. 

UK Safety came to the mar- 
ket in May last year through 


the reverse takeover of TSW, 
the former independent televi- 
sion contractor for the 
south-west of England 

In March it reported pre-tax 
profits of £l.&n for the year to 
end-December. 

The results included the 
trading activities of the Bristol 
company for the eight months 
following the reverse take- 
over. 

The company is due to report , 
interim results in early Sep- 
tember. 


Black 
Arrow dips 
to £1.6m 

Reduced pre-tax profits of 
£I.6m, compared with £2L03m, 
were announced by Black 
Arrow Group for the 12 
months to March 31. 

However, last time there 
was an exceptional £668,000 
profit on a property disposal 

Turnover dipped to £19m 
(£20.4m) with the office furni- 
ture manufacturing, distribu- 
tion and partitioning side con- 
tributing £17 Jim (£l&£m), and 
teasing and instalment finance 
£1.29m (£ 1.52m). 

Mr Arnold Edward, chair- 
man, said trading had 
Improved during the latter 
part of the year and the 
upturn had continued into the 
first quarter. 

Earnings per share slipped 
to 4.l6p (5.02p) but the divi- 
dend Is held at 2.6p with an 
increased final of 2.lp (l.6p). 

Sycamore 
warns of 
write-offs 

Sycamore Holdings, the 
lossmaking office, hospital and 
garden furniture group, yester- 
day postponed its Interim 
results and warned of substan- 
tial write-offs this year. 

Its shares fell ?«p to lKp. 

The announcement comes 
just three days after the resig- 
nation of non-executive direc- 
tor, Mr Michael Hunton. 

The group said its bankers 
were reviewing the level of fin- 
ancing facilities in light of the 
expected provisions. Sycamore 
has been in discussions with 
its bankers since last year, 
when the value of net assets 
M to less than half its called 
up share capital. 


Jupiter fund management move 


By Norma Cohen, 

Investments Correspondent 

Jupiter Tyndall, the Inter- 
national fund management 
group, yesterday announced its 
widely ■expected acquisition of 
Queen Anne’s Gate Asset Man- 
agement in a deal valued up to 
£10m cash. 

Mr Charles Crowther and Mr 
Peter Adderson, directors of 


QAGAM, will become directors 
of Jupiter. 

QAGAM is the former fund 
management arm of the now- 
privatised water companies; it 
has roughly £2bn in pension 
fund assets under manage- 
ment 

In the year to March 31 it 
achieved profits of £300,000 and 
had net assets of £800,000. 

Although QAGAM has had 


above-average performance, it 
has only a few - but very large 
- clients. Even the loss of one 
or two could have a significant 
negative effect on profits and it 
has been seeking a buyer for 
several months. 

Jupiter's move is in line with 
its stated strategy of disposing 
of hanking businesses to con- 
centrate on expanding fund 
management activities. 


Lower exceptional cut deficit at Ascot 


Lower exceptional costs and reduced 
finance charges enabled Ascot Holdings, 
the property, pubs and hotels group for- 
merly known as Control Securities, to cut 
pre-tax losses from £79.6m, restated for 
FRS 3, to £6.88m in the year to March 3L 
Operating profits were £10.4m (£8.64m) 
including £2.43m (£2.48m) from discontin- 
ued activities, giving a 29 per cent increase 
on continuing operations. Net exceptional 
profits added £1.03m against costs of 
£58. Lm, which took into account a £53.4m 


deficit on the revaluation of fixed assets. 
Net finance charges were £18m (£3Qm). 

Mr Howard Dyer, chairman, said trading 
in the first two months of the present year 
was on plan. 

He added, however, that the company 
remained highly geared with negative net 
assets although borrowings were cut over 
the year from £233£m to £14L4m. In addi- 
tion, bondholders interest becomes pay- 
able from 1996 and the bank facilities 
remain on demand 


As a result the company is working an a 
financial restructuring. This follows a 
restructure involving bondholders in June 
last year. 

Dining the year there were 80 asset dis- 
posals as well as the sate of Belhaven r 
Brewery and Haywood Business Park. 

Turnover was £77.9m (£80.1m) with 
£l99m (£24m) from discontinued activities. 
Continuing operations showed m increase 
of 4.4 per cent 

Losses per share were 2.1p (21 .8p). 


GKN helicopter compensation hopes rise 


By Tim Burt 

Westland, the GKN subsidiary, 
has moved a step closer 
towards winning a cash settle- 
ment from the Arab Organisa- 
tion for Industrialisation over 
cancelled orders for up to 250 
helicopters. 

The group's hopes were 
lifted after Mr Justice Colman. 


The results have been 
delayed pending a review of 
trading at Cygnet, a wholly 
owned subsidiary. 

London and Man 

London and Manchester, the 
Exeter-based life assurance 
and financial services group, 
reported a as per cent rise in 

annual p remiums for the half 

year to end-June. Corporate 
pensions business was up by 
299 per cent 

New single premiums, exclu- 
ding managed fund invest- 
ments, rose by 3.9 per cent, but 
managed funds were lower. 

Greenfriar 

Greenfriar Investment, part of 
the Henderson Touche Rem- 
nant stable of investment 
trusts, reported a net asset 
value of 444.7p per share as at 
June 30. 


1 DIVIDENDS ANNOUNCED 1 





Carres - 

Total 

Total 



Current 

Dare of 

ponding 

for 

lest 



payment 

payment 

dividend 

year 

year 

Baring Tribune int 

1.7 

Sept 16 

1.7 

- 

6.6 

Black Aitow 

fin 

2.1 

Oct 3 

1.6 

2.6 

2.6 

Date Electric — 

fin 

nil 

- 


1 

5.1 

G2*sMew§ 

— Art 

5 

Oct 3 

4.5 

a75 

7.5 

Greenfriar lm 

— int 

ZZ 

Sept 9 

■2.15 

- 

4.5 

NatWest Smaller _ 

-™fin 


Sept 30 

1-875 

3.425 

3 

Smaller Cos IT . - ini 

1.2 

Oct 28 

12 

- 

2.6 


OMcrtnds shown panes per share net §U$M stock. ^Includes special 0.425. 


the commercial court judge, 
granted an application by the 
helicopter manufacturer to 
extract compensation from the 
AOTs UK-held bank accounts. 

The move follows a 14-year 
battle between the AOI - rep- 
resenting the governments of 
Saudi Arabia, Qatar and the 
United Arab Emirates - and 
Westland, the subject of a hos- 


NEWS DIGEST 


The figure compared with 
values of 491.5p at end-Decem- 
ber and 435p at end-June 1993. 

The value per warrant was 
I10.7p, against 157.5p and lOlp 
respectively. 

Attributable revenue for the 
six months amounted to 
£378,000, against £470,000, for 
earnings of 3-28p (LOSp). The 
interim dividend is lifted to 
2J2p (2J.5p) and the directors 
intend to at least maintain the 
total for the year at 4J>p. 

Baring Tribune 

Baring Tribune Investment 
Trust bad a net asset value of 
367.8p per share at June 30 - a 
year-on-year advance of 8 per 
cent, but a decline of 12 per 
cent since the trust's December 
year end. 

The trust, which seekp 
long-term growth through an 
international portfolio, 
reported net revenue of £1.16m 
for the six month period, down 
from EL79m last time. Earn- 
ings per share dipped to 2J6p 
(35p) but the Interim dividend 
is maintained at L7p. 

Biotechnology In vs 

Biotechnology Investments 
saw its net assets fall in the 
year to May by 10 per cent to 
$182m (£lZ7m). Net asset value 
per share fell from 83.46 to 
$3.28. 


tile takeover by GKN earlier 
this year. Proceedings first 
began following the Camp 
David peace treaty in 1979, 
which prompted the AOI to 
abandon plans to buy Westland 
helicopters built under licence 
in Egypt Lawyers acting for 
Westland have been seeking 
compensation from tbe AOI 
since June last year, when it 


However, tins outperformed 
■the biotechnology sector as a 
whole, which fell by 20 per 
cent over the same period. 
Lord Armstrong of Ilminster, 
chairman, said. 

The group, which is quoted 
on the London stock exchange, 
has moat of its investments in 
the DS and expresses its 
results In dollars. 

Bu ckingham 

Buckingham Intamatinnal, the 
hotels and property group, has 
suffered another setback after 
the High Court made a £3.7m 
judgment against it. 

Tbe judgment arose out of 
the 1986 purchase of the World 
Wide Dryer business. Bucking- 
ham is considering an appeal 

Buckingham, which reported 
a pre-tax loss of £i04m in the 
year to October 31 after sub- 
stantial write-downs on proper- 
ties in the UK and Portugal, is 
currently working through an 
asset disposal programme to 
reduce its £92.9m debt 

Equitable Life 

Equitable Life Assurance has 
purchased Direct Line’s 
regional headquarters building 
in Leeds far £27 bl The seller 
was the Leeds Permanent 
B unding Society. The building 
is currently producing rental 
Income of about £L6m, with a 


was awarded £385m damages 
following arbitration proceed- 
ings tn Geneva. 

The group has so far recov- 
ered £25m from AOI accounts 
in the US and £U5m in France, 
leaving £245 m plus interest 
outstanding. The AOI is expec- 
ted to appeal; GKN said It was 
exploring ways of reaching a 
amicable settlement 


passing rent of £13.75 per sq ft. 

The office block. Direct Line 
House, comprises 90,000 sq ft of 
offices on nine upper floors, 
and an additional four shop 
units at ground level. 

W Canning 

W Canning, the speciality 
chemicals and electronic com- 
ponents group, has sold its 
electronic component distribu- 
tion division to its manage- 
ment 

The division, to be called 
Innovative Electronic Compo- 
nents Group, has a network of 
distribution companies in Italy, 
France and Germany, and will 
acquire Future Components, a 
UK distributor. 

finance of £19.5m is being 
provided for the deal which is 
being backed by CINVen, the 
venture capital company, with 
NatWest Acquisition Finance 
providing senior debt and 
working capital. 

Abbey National 

Abbey National Financial Ser- 
vices. the financial advisory 
subsidiary of Abbey National, 
has bought GM Benefit Con- 
sulting Group, the pensions 
consultancy, for an undis- 
closed sum. 

Net assets of GM Benefit, a 
Guinness Mahon offshoot, were 
valued at £409,000 at May 31. 



Fancy a tipple? Jobs Hedderson, managing director, (left) with Tom Hedderson 


Gibbs Mew expands estate 
with £12.8m Centric buy 


By Tim Burt 

Gibbs Mew, the Salisbury- 
based regional brewer, yester- 
day accompanied sharply 
increased annual profits with 
the £12.8m acquisition of 
Centric, the Midlands pub 
group. 

The all-paper transaction. 
Involving the issue of up to 
3.21m ordinary shares at 400p, 
will bring an additional 197 
pubs into the group’s estate, 
faking the total to 318. 

The move follows six months 
of talks with Centric, which 
was only formed in 1992 when 
it purchased 173 pubs from 
Bass. 

Mr Tom Hedderson. chair- 
man, said the deal would 
enable the USM-quoted group 
to develop three core areas; 
brewing of traditional ales 
such as The Bishop's Tipple; 
warehouse distribution and 
estate management 

"We have no ambition to be 
a mega-brewer, but this acqui- 


sition will allow us to continue 
with steady and comfortable 
growth,” be added. 

Gibbs Mew also moved to 
strengthen its balance sheet by 
announcing a £13.6m rights 
issue, which will be used to 
reduce borrowing; Gearing is 
expected to fail from 65 per 
cent to 50 per cent - equivalent 
to pro forma net borrowings of 
£20.4m - following the issue, in 
which existing shareholders 
will be offered 4J28m ordinary 
shares at 340p. The shares fell 
27p to 391p yesterday. 

The issue, underwritten by 
Samuel Montagu with Pan- 
mure Gordon as brokers, is 
being made on a 2-for-S basis. 

Once the acquisition and 
rights issue have been com- 
pleted. the bolding of the Gibbs 
family and current directors is 
expected to fall from 64 per 
cent to 35 per cent, while the 
shares issued to Centric will 
represent 23.1 per cent of the 
enlarged capital. 

Steady volumes in Gibbs 


Mew’s west of England heart- 
land and a full year’s contriba- 
tion from UK D, the wholesale 
teg operation, helped pre-tax 4 
profits lump to £3.06m (SLOW* 
restated for FRS 3) in the y&i 
to April 2. 

The figures were flattered by 
lower interest charges and * 
£363,000 fflMJMQ) profit on tb* 
disposal on surplus properties- 

Nevertheless, Mr Hedders* 
claimed that operating profit- , 

of £3.74m (£2.7m) on increase 

turnover of £33.9m (£28.7® 
showed that the brewer bat 
defied a 25 per cent decline b 
national beer volumes. 

Earning s per share rose froo 
a restated I533p to 3l51p an< 
a final dividend of 5p makes • 
total of 8.75p (7ip). 

Centric, meanwhile, mad 
pre-tax profits of £56,000 in — 
year to March 26. agates 
losses of £L18m. Before m.: 
est payments on bank an 
brewery loans, however, 
made operating profits 
£3.g4m (£2.76m). 



FINANCIAL TIMES WEEKEND JULY 23/JULY 24 !994 


lih 









Apple’s third quarter tops 
market expectations 


INTERNATIONAL COMPANIES AND FINANCE 


'gin 


By Louise Kehoe 
In San Francisco 

Apple Computer yesterday 
reported higher -than -expected 
third-quarter earnings, as sales 
of its new “Power Macintosh" 
products introduced in March 
advanced strongly. 

Third-quarter revenues were 
S2.15hn, up 15 per cent on a 
year ago. 

Net income for the quarter 
before the effect of a one-tune 
gain- was $59.5m, or 50 cents a 
share. In the same period last 
year, Apple had earnings of 
Si 0.6m, or 9 cents, before 
restructuring charges totalling 
S320J9UL 

Part of this charge was 
reversed in this year's third 
quarter, producing a gain of 
S126Jtan, or $78. 7m after few 

The company said it had 
modified and eliTnin^^ some 


of its original restructuring 
plans due to lower-thanexpec- 
ted expenses and changing 
market conditions. These plans 
had included moving certain 
operations to new locations in 
the US. 

Accounting for the effects of 
these items, net income for the 
quarter was 8138.1m, or $1.16 a 
share, compared with a net 
loss of $l88An, or $1.63. in the 
third quarter a year ago. 

Apple said it shipped more 
than 200.000 of its Power Mac- 
intosh personal computers dur- 
ing the quarter, up from sales 
of 150,000 units in the 
quarter. 

“We are pleased to see indus- 
try support building around 
the Power Macintosh. More 
applications are arriving from 
software developers, and cus- 
tomer response to this new 
industry platform has been 


very good.” said Mr Michael 
Spindler, president and chief 
executive. 

Increased sales of Power 
Macintosh, and the company’s 
latest notebook computers, 
helped to drive gross marg ins 
up significantly in the quarter, 
to 26.7 per cent of sales from 
24.0 per cent in the previous 
quarter. 

“Over the last quarter we 
have improved our financial 
model, controlled our costs, 
and managed our working cap- 
ital extremely well," said Mr 
Spindler. 

For the first ninn months of 
1994 , Apple reported revenues 
of J 6 . 7 bn. up from S 5 . 8 bn a year 
ago. 

Net Income after- restructur- 
ing charges and reversals was 
8195.5m, or 81.65 a share, for 
the nine months, compared 
with 8839m, or 70 cents. 


Canal Plus, 
Bertelsmann 
in pay-TV 
joint venture 

By Alice Rawsthom 
in Parts and Judy 
Dempsey in Bari in 


Mercedes-Benz 
plans shake-up 
of bus operations 


Westinghouse slips to $75m 


By Richard Tomkins 
in New York 

Westinghouse Electric, the 
. struggling US conglomerate, 
yesterday reported a fall in net 
income, to $75m from $84m, for 
the second quarter. Revenues 
were down from $2.l5bn to 
$2. 11 bn. 

Broadcasting, Thermo King, 
energy systems and WCI Com- 
munities were the only divi- 
sions to improve their contri- 
butions to operating profits. 
Electronic systems, govern- 
ment and environmental ser- 
vices, power generation, Knnii 
and other businesses were all 
down. 

Mr Mike Jordan, chairman 
and chief executive, said the 
results were slightly above 
expectations. He said the 
company would accelerate 


its cost-reduction pro- 
grammes as part of continuing 
efforts to improve overall per- 
formance. 

In May, he predicted that 
growth in earnings per share 
would reach 15 to 20 per cent 
over the next three years. 

Operating profits fell to 
8154m from $185m in the sec- 
ond quarter, giving an operat- 
ing profit margin of 7.3 per 
cent compared with 8.6 per 
cent last time. Earnings per 
share fell to 16 rents from 20 
cents. For the first half, net 
income fell to $lllm from 
$143m last time, before 
accounting changes. 

Mr Jordan said employees 
had been reduced by 4 per nwnt 
- about 2,000 people - 
the end of last December. 
“These costs will continue to 
come down significantly 


throughout 1994 and 1995,” he 
said. 

Among the better-perfo rming 
divisions, broadcasting bene- 
fited from low costs and 
improved pricing, with reve- 
nues up by $l0m and operating 
profits by 88m. Thermo King 
saw continued strength in 
North American truck and 
trailer markets, lifting reve- 
nues by 837m and operating 
profits by 83m. 

Westinghouse Communities, 
the property development side, 
lifted revenues by 825m to 
$74m and operating p rofits by 
811m to 824m. 

Mr Jordan said: “We con- 
tinue to study alternatives 
with respect to Communities 
in order to maximise its value. 
We will be able to reduce our 
debt by using the cashflow 
generated by this operation. " 


Eramet completes share placement 


By Kenneth Gooding, 

Mining Correspondent 

The first step in the partial 
privatisation of French group 
Eramet, the world's biggest 
producer of ferro-nickel and 
high-speed steels, has been 
completed with the placing of 


15 per cent with European 
investors, at FFr250 a share. 
This values Eramet at 
FFr3. 7bn ($690 5m). 

No new money was raised by 
Eramet. because the shares 
came from its three French 
shareholders: ERAP, the state 
holding company; Elf Aqui- 


taine, the oil and gas group; 
and IMetaL the Paris-based 
industrial holding company. 

Mr Rambaud said Eramet 
still wanted to offer at least 
another 10 per cent of its 
shares, and to obtain a listing 
on the Paris bourse before the 
end of thla year. 


Canal Plus, the French 
television company, and 
Bertelsmann, the German 
publishing group, are to set up 
a joint venture aimed at tap- 
ping pay television services 
throughout Europe. 

The companies, which will 
invest more than DM700m 
(84465m) over the next three 
years, will also specialise in 
digital technology, and create 
a joint fund to buy programme 
and movie rights. 

Canal Plus had a turnover of 
FFrS.7bn ($1.62bn) last year, 
and Bertelsmann, one of Ger- 
many’s largest private inves- 
tors in television, had a tnra- 
over of DM1 Tbn. 

The decision by flanai pins 
to join forces with Bertels- 
mann comes at a difficult Him* 
for the French company. It 
was rocked earlier this year by 
the sudden resignation of Mr 
Andre Bousselet, its founder 
and chairman, following a row 
with Havas, the French wtwHa 
group and one of its main 
shareholders. 

Mr Roussel et resigned after 
discovering that Havas bad 
formed a coterie of Canal Pins 
shareholders to effectively 
control the company. 

He claimed it was a covert 
attempt to prevent Canal Plus 
from operating as on indepen- 
dent entity. 

This, he said, was because 
Canal Plus had been negotia- 
ting in the European multime- 
dia field with foreign partners 
such as Bertelsmann, in pref- 
erence to France Telecom, the 
state-controlled tele- 
communications group allied 
to Havas. 

Saint-Louis, the French 
sugar, paper and food group, 
is negotiating the acquisition 
of an additional stake in Span- 
ish sugar group General Azu- 
carera, Reuter reports from 
Paris. 

Azucarera has annual salon 
of FFrl5bn and is 10 per cent 
owned by Saint Louis. 

Saint Lonis is under- 
stood to be wiring to acquire 
an additional 10 to 15 
per cent of the Spanish 
group. 


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TELEPHONE FREE OW 

0800 30 33 30 


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certainty 

rrtll *, l. pdi IMSTAMT ACCESS. « DAY, HIM. MOHTHIY UfCOHE, TUB, TESSA. Asset B a BMltoa af Bn Brhtd A WlB BaPBtaf Sadrty. 



By Christopher Partem! 

in Frankfurt 

Mercedes-Benz is p lanning a 
shake-up of its loss-making 
European bus operations, 
involving job cuts and the 
merger of its interests into an 
independent business unit. 

The new operation brings 
together separate divisions in 
Mannheim and Turkey. K9ss- 
bohrer will also be included if. 
as expected. Mercedes wins a 
takeover bid for the strug gling 
group. The new company Is 
due to start operating on Janu- 
ary 1 next year. 

According to Mr Helmut 
Werner, chairman of the 
Daimler-Benz vehicles subsid- 
iary, Mercedes will decide 
whether to make a bid for the 
Ulm-based K&ssbohrer busi- 
ness next week. Although Swe- 
den’s Volvo is believed to have 
shown some belated interest in 
the group, best-known for the 


Setra marque, Mercedes has 
been studying the feasibility of 
a takeover since ApriL 
There have been rumblings 
of resistance from Mercedes' 
commercial vehicles works in 
Mannheim. However, Mr Wer- 
ner says the workers’ council 
would not. ultimately, obstruct 
the move, which would 
improve the long-term health 
of a sector which had been los- 
ing money for years. 

However, the cartel authori- 
ties could throw up obstacles 
to the deal, which would give 
Mercedes a further 22 per cent 
of the German bus market, 
where it already has a 35 per 
cent share. 

According to Mr Werner, a 
structural clear-out was needed 
in an industry plagued by over- 
capacity. The market was so 
tight that not all suppliers 
could maintain production at 
economic levels. 

At a closed meeting of the 



Helmut Werner: says structural clear -ont is needed 


Mannheim workforce earlier 
this month, union officials 
were reported to have said pro- 
visional plans to switch bus 
manufacturing and fitting-out 
operations between the Mer- 
cedes and Kassbohrer works 
could cost 2.000 of the 


H. ,300 jobs in Mannheim. 
Mercedes says a takeover 

would imply the loss of 400 
bus-making jobs. Talks are 
already under way on reducing 
the Mannheim workforce by 

I, 400. regardless of the Kass- 
bohrer project. 


Recovery under way, says chairman 


Mercedes-Benz expects to boost 
passenger car deliveries by 15 
per cent this year, regain lost 
ground in the US, and post a 
“considerably improved" 
result, according to Mr Helmut 
Werner, company chairman, 
writes Christopher Parkes. 

The Daimler-Benz automo- 
tive division, which lost a net 
DML2bn ($766m) last year, 
delivered 302,300 cars in the 
first six months of this year - 
an increase of 37 per cent he 
said. Production rose 44 per 
cent 

The company did not have 
the capacity to increase deliv- 
eries further, Mr Werner -sa i d . 
In any case, Mercedes was now 


planning capacity according to 
medium-term demand. It was 
not interested in costly 
attempts to matrh short-term 
trends. 

Indicating progress in the 
group's restructuring and 
rationalisation programme, Mr 
Werner said Mercedes would 
make 586,000 cars this year 
with a workforce of 80,000. In 
1991, a workforce of 100,000 
built around 570,000 units. 

Although progress wonld 
slow in the second half , the 
company now expected to 
deliver 585,000 cars during the 
year, compared with initial 
estimates of 570,000. 

Figures for the first six 


months were distorted by 
extraordinarily low sales fig- 
ures in the comparable part of 
1993. These were blamed on 
recession and customer delay 
In purchasing until the intro- 
duction of the new C- Class 
compact Mercedes In mid-year. 

The group was enjoying 
especial success in the US, 
where car sales had risen 28 
per cent to 35,700 In the first 
half, and were expected to 
increase to 72400 for the whole 
year. US volumes were now 
approaching those enjoyed in 
the “good years” of the 1980s, 
Mr Werner said. Meanwhile, 
both Mercedes and BMW had 
increased market share, while 


their Japanese competitors had 
lost ground, he said. 

The commercial vehicles 
business was also improving, 
although the German market 
remained sluggish. Total truck 
sales rose 12.7 per cent in the 
first half, and deliveries of 
vans were up 18 per cent. 

Overseas assembly and man - 
ufacturing subsidiaries were 
doing particularly well 

Conditions in the German 
vehicles market were under- 
lined in official first-half statis- 
tics. released yesterday, show- 
ing total new car registrations 
up just 0.8 per cent on last 
year. Truck and van sales were 
down 2.5 per cent 


Commerzbank looks to expand in S Africa 


Commerzbank is considering 
buying a bank in South Africa, 
With a view to ex panding its 
activities in the country, Mr 
Martin Kohlhaussen, chief 
executive, said, Renter reports 
from Frankfurt 
The bank is considering 
enlarging its financial involve- 


ment in South Africa by up to 
50 per cent he said. 

With an exposure of more 
that DMl.6bn ($l.02bn) in 
South Africa, Commerzbank 
was already more heavily 
Involved than Germany’s other 

big hanhc 

Its lending covers trade and 


sovereign loans, as well as 
project financing in the 
steel, al uminium and power 
sectors. 

Mr Kohlhaussen said the 
bank planned to establish an 
“operating unit” in the coun- 
try, possibly before the end of 
this year. It would do this by 


either buying a bank in which 
it would take over manage- 
ment, or by setting up a 
branch or subsidiary. 

He said there were several 
small banks on the market 
which could be bought for 
between DMlOm and 
DM20m. 


FINANCIAL TIMES 

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INVESTORS 

CHRONICLE 


THE CITY INSIDE OUT 







10 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


COMMODITIES AND BOND PRICES 


WEEK IN the markets 

Coffee down 
but frost 
fears remain 

London coffee traders were 
yesterday ensuring that they 
would not catch a cold if there 
was another frost in Brazil 
over the weekend. 

The selling that had driven 
the London Commodity 
Exchange's September rebus ta 
futures price down by more 
than $350 a tonne dried up in 
mid-week and yesterday's dose 
of $3,640 was $170 off die low. 

Traders had not changed 
their miftrifi about the market, 
however; they still thought a 
retracement justified after the 
recent spectacular surge to 
8-year highs. The main reason 
for the buying was determina- 
tion not to have to repeat the 
undignified scramble for cover 
that followed this year’s sec- 
ond damaging Brazilian frost 
two weeks ago. 

No frost is predicted for this 
weekend, but traders were tak- 
ing no chances. “If there’s no 
frost then we could see $50 on 
the downside nest week.” on 
told the Reuters news agency. 
"But if there is frost it's going 
to shoot up S5QQ." 

Cocoa emerged from coffee’s 
shadow at the LCE on Monday 
morning when the September 
futures position jumped more 
than £40 to a 6’/i-year high of 
£1.112 a tonne. The move above 
£1,000 attracted seLlers, how- 
ever. as did subsequent forays. 
Only on Thursday did the price 
close above that level and by 
yesterday’s close it was back to 
£1,092, up £24 overalL 

Monday's move had been 
triggered three days earlier 
when New York cocoa futures 
shot up in last minute trading. 
As with most commodity price 
surges of late, investment fund 
buying was mainly responsi- 
ble. 

The bulls were not dismayed 
at their failure to break deci- 
sively through the $1,000 bar- 
rier. “The fundamental picture 
is of continuing deficit with 
rising consumption, pointing 
to higher prices.” one trader 
told Reuters. "The market 

WEEKLY PRICE CHANGES 


remains buoyant and we're 
seeing a consolidation phase” 
explained another. 

At the London Metal 
Exchange copper’s leap on 
Wednesday to a two-year high 
failed to inspire the other base 
metals markets. 

Once again it was to invest- 
ment fund buying that the 
three months delivery posi- 
tion's $77.50 rise was attri- 
buted. Dealers suggested that 
the fund managers had tired of 
the palladium market which 
they recently drove to a five- 
year h ig h , and decided to turn 
their attention to another 
metal that would benefit from 
increased international eco- 
nomic activity. 

The uptrend was not main- 
tained, but the copper price did 
manage to consolidate above 

UH WAREHOUSE STOCKS 
(As a THraJa/s close) 

t onnw 

MumHum -19.3M to 2*40.1 50 

AAmnUon a*oy -380 la 27,740 

Cooper -1*25 to 339*00 

Lead -400 to 356,000 

KMcM -252 10 132*16 

Zinc +1*30 to 1*11*75 

Tin -12S to 30*55 

the psychologically si gnifi cant 
$2,500 level. It closed yesterday 
at S2.514L50 a tonne, up $30.75 
on the week but $4150 off the 
high. 

In contrast to last week, 
when it reached a 39-month 
high and flirted with overhead 
resistance at $1,550 a tonne for 
three months delivery, the alu- 
minium market ended this 
week testing support above 
$1,500 a tonne. 

The market seemed to take 
little comfort from a pledge by 
the leading producing coun- 
tries to maintain the voluntary 
agreement that is seeking to 
cut world production by up to 
2m tonnes for two years. 

Delegates at a meeting in 
Canberra heard that Russia, 
while contributing to the out- 
put cuts, albeit at a slower rate 
than it had agreed, was still 
exporting as much as ever, and 
this can have done little to bol- 
ster sentiment. 

News yesterday of another 
big cut in LME warehouse 
stocks was ignored as the 
aluminium price fell $22.50 to 
$1,510 a tonne, down $3450 on 
the week. 

Richard Mooney 



Latest 

Change 

Year 

1994 


prices 

on week 

ago 

rtgh 

Low 

Gold per tray oz. 

3384.70 

-0.50 

333050 

$386.50 

$389.50 

S4ver per tray oz 

344.45p 

+9.15 

335.75p 

384. 50p 

335*0p 

Aiuralnhn 99.7% (cash) 

31483*0 

-48.5 

31206.5 

31529X0 

$1107X0 

Copper Grade A (Cash) 

$2507.00 

+36.0 

$19105 

32507.00 

$1731X0 

Lead (cash) 

$576*0 

-16 

$390.50 

3592.0 

3428.0 

Nickel (cash) 

S6157-50 

-217.5 

$4855* 

$6400 

35210.0 

Zinc SHG (cash) 

£867.00 

-19.0 

S921X 

$1014 

3900.5 

Tin icash) 

S5235 

-210 

$48900 

S56S0* 

34730.0 

Cocoa Futurcrs Sep 

E1082 

+24 

E758 

£1068 

£859 

Coffee Futnes Sep 

$3628 

-200 

3893 

$382B 

S1T7S 

Sugar (LDP Raw) 

$303* 

+5.7 

3253.7 

$309.4 

$252.9 

Sariey Futures Nov 

El 04 50 

+t50 

£104.30 

£102.00 

£92.65 

Wheat Futures Nov 

Cl 06*0 

+2.00 

£107.86 

C117XO 

E97.80 

Cotton Outlook A Index 

81 .500 

+080 

58.75c 

87.10c 

62.45c 

Wool (645 Super) 

42Sp 

+4 

348p 

428p 

342p 

OU (Brent Bland) 

Si 7.81k 

+003 

$16-85 

*18*5 

S1116 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices from Amalgamated Mold! Tracfing) 


Cash 

Close T 482-4 

Previous 1505-6 

HVghfeM 148011489 

AM Official 1489-90 

Kerb dose 

Open int 203.023 

Total daDy turnover 58*54 

■ ALUMINIUM ALLOY (S per lonmi) 

CtOM 1490-500 

Previous 1507-17 

Hfefvfow 

AM Official 1490-1500 

Kerb dose 

Open inu 2*75 

Total daffy turnover 662 


Precious Metals continued 

■ GOLD CQMEXflOQ Trey szz. SArOy 3ft 


Sett fay's 

price dranga tfigb low 


Opm 

Ut VoL 


GRAINS AND OIL SEEDS 

■ WHEAT USE (E par tonne} 

Sea Day's Open 

Brtce change Ugb Low lot 


SOFTS 

■ COCOA LCE (E/tome} 


Sett Safe Open 

price tinge Mgh low M W 


8 rath* 

Jut 

3W, a 

+4* 

. 

. 

3 

3 

Sep 

104.73 

+0X0 106*0 104.15 

382 

52 

Jd 

1060 

-a 

1096 

1080 272 6 

«ug 

/tog 

365* 

+0.7 

385.1 

3833 

38.181 


tow 

105X0 

+0.45 108*0 105.70 

2X32 

101 

&V 

1092 

-7 

1107 

1090 11«8 1,468 

Del 

1509-11 

Sep 

386X 

+07 



- 

- 

Jm 

107 JO 

+41X5 107*0 107.75 

1.474 

40 

Dec 

1104 

-4 

ms 

1101 30*13 1.715 

fac 

1532-3 

Oti 

388.1 

+0.7 

mi 

386.9 

7.105 

614 

Hay 

109X0 

+17* 109.80 1 09100 

662 

43 

Mr 

1124 

-2 

1133 

1121 28X67 525 

Ml 

1527/1502 

Dec 

3912 

+0* 

381X 

39Q.1 

40351 

1213 

Hay 

111*5 

+0.45 Ml JO 111*0 

7W 

6 

«toy 

1133 

-1 

1135 

1)26 104HS IBS 


1514-1S 

fito 

394* 

+OX 

394.6 

394.6 

9,914 

01 

Jri 

11105 

+0X0 11125 113*5 

147 

. 

Jd 

1138 

- 

1137 

1134 1950 75 

Jm 

1501-3 

Total 




153*34 30*72 

Tow 


5.701 

SB 

Total 




106*48 8,157 

fatal 


1515-17 

1530-35 

153571515 

1515-20 

1515-25 


■ PLATINUM MYUEX (SO Troy qgj S/tray QZ4 

Jri 41S9 +3-3 414* 41<* 138 20 

Oct 410* +03 4194 4150 21.056 2,137 

Jm 422J +12 mo 419* 2.337 S3 

Apr 42SX +12 425a 4210 1.1*1 

Jld 4216 +12 - I 

Oct 4332 +32 - - 1 

TOtJl &32A VM 

m PALLADIUM NYMSX (100 Trey az.; Srtroy ozj 


Ctose 

Previous 

HlgMcnv 

AM Official 

Kerb dose 

Open frit 

Total dally turnover 
■ MCKEL 0 per ton 

575.6-6X 

585-6 

5753-6* 

81,649 

4*22 

582-3 

600-1 

593/588 

591X-2.0 

UW3/3DD 

Close 

6155-60 

6245-50 

Previous 

6290-300 

6385-90 

Hlgrvtow 


6350/0230 

AM Official 

6170-5 

6270-75 

Kerb tioae 


6240-50 

Open ire. 

57*11 


Total daffy turnover 

90.416 


■ TM (3 per tonne) 



Ctose 

6230-40 

5305-15 

Previous 

5345-S5 

6420-30 

Hlgh/tow 


5380/5300 

AM Official 

5265-70 

5337-40 

Karto close 


5300-05 

Open art. 

18X72 


Total drily turnover 

2.709 


■ ZMC, special high grade (3 per torme) 

Claee 

966.5-7X 

991-2 

Previous 

976X-7.5 

1001-2 

Hlgh/low 


996/089 

AM Official 

986-7 

990X-91 

Kerb dose 


990-90.5 

Open int. 

102*96 


Total daffy turnover 

24,400 


■ COPPER, grade A (S per tonne! 


Ctose 

2508.5-7X 

2514-5 

previous 

2531-2 

2539-40 

HlgMow 

2512/2511 

2527/2512 

AM Official 

2510-11 

2518-19 

Kerb dose 


2513-4 

Open hit 

228.608 


Total dally turnover 

31*05 


■ LME AM Official E/S rate: 1X328 


Sep 

14&15 

+090 

148X0 

145.75 

4X92 

73 

Dec 

l*7.*0 

+090 1*5*0 

146X0 

942 

3 

Kar 

145X0 

+0*0 

145X0 

145X0 

170 

1 

Tetri 





18M 

77 

■ SILVER GOMEX (TOO Tray OZ4 ContsTroy 02.) 

Jri 

325.7 

+3* 

526* 

522* 

145 

18 

Ang 

m3 

+18 

- 

- 

- 

- 

sra 

528.0 

+2.8 

5305 

523.0 78X69 

19.039 

Dac 

5353 

+2* 

S37X 

531* 24.450 

1*03 

Jaa 

538* 

+29 

- 

- 

35 

. 

■Mr 

5414 

+29 

545* 

S3B* 

8,633 

6 


LME Closing C/S rata; 1*332 

Spot 1.5310 3 irthcl.5295 6 mttrt 1.5291 9 mfe: 1.5381 
■ HIGH GRADE COPPER (CClMEX) 


Day 1 * 

Oom ti nge Hp 

11395 -0.65 114*0 

113-95 -0.70 11420 
114.40 -0,70 115.10 

114*5 -055 
113.65 -055 
11135 -0-60 113.80 


Open 

km pit Vtt 
113*5 1.189 322 

114J» 950 203 

114.10 32X41 7.777 

- 424 10 

- 245 

112.90 10.300 717 

61*06 8JSZ7 


Pw rcmne graces otwunaa nml p PonaYVg. c Cam lb. / Sep 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(Prices supplied by N M Bolhscftfld) 

Quid (Tray oft 8 price £ equfv. 

Close 384.50-384.90 

Opening 384X0-384. 70 

Morning fix 384.10 252X00 

Afternoon Hx 384.00 251.969 

Day’s h6gh 384.80-385-00 

Day’s Low 383.70-384.10 

Previous dose 386.10-366.50 

Loco Ldn Mean Odd Lancfing Rotes (Vs USS) 

1 month 4.04 e months 4X0 

2 months .4.12 12 months ..4X0 

3 months 4*8 

Shier Rx p/troy at- US da equtv. 

Spot 344.45 525X5 

3 months 348.55 531.00 

6 worths 353.60 537.00 

1 year 384.15 553.45 

Gold Coins 5 price £ equfv. 

Krugerrand 390-393 252-255 

Maple Leaf 395.10-397X5 

New Sovereign 90-93 58-61 


122*43 20*10 


ENERGY 

■ CRUDE on. NVMEX (42.000 US gate. S/bamai) 

Latest Day's Open 

price change Hflh Low tot Ygi 

Sap 19*2 +023 19*2 19X0111*45 48*97 
Oct 1024 *0.17 19X7 19X0 47*77 13X22 

Bov 19X3 +0.17 1008 18*8 32*72 5X82 

Dec 16*0 *0.16 18X1 18X3 46,717 12.168 

Jaa 16*0 +0.14 18*0 18.71 23,974 2,695 

Frit 18*5 +0X5 1567 18*5 11.119 285 

Tool 408*00 99*18 

■ CRUDE OB. IPE (S/banri) 

Latest Dan Open 

price dungs Ugh Low lit Vol 

Sep 17.87 +018 17*4 17*1 65*79 21X34 


Jan 17*2 +0X0 17*2 17X5 5.133 753 

Fab - 2*41 27 

Total 128X90 29*83 

■ HEATING OIL HVMEX (42X00 US paftL; c/US gate.) 

Latest Day*i Open 

price ch a nge Mgb to* ti VU 

Atm 50*0 +0*6 50.60 4085 19.445 125«6 

Sap 51.05 +0.48 51.10 50*5 28.520 6*08 

Oct 51.95 +0*8 52X0 51X0 11.495 2458 

Nov 53X0 +0.48 53X5 52.70 9*85 1*87 

Dec 53X5 +0X8 53X5 53X0 20.749 1.257 

Jan 54.55 +0.48 54*5 54.45 12479 SCO 

Total 123*40 24*26 

■ GAS OIL PE jStome) 

Sett Day's Open 

price tinge Mgh lav int IW 

Aug 154X5 +0.75 155X0 1532S 25,081 4.918 

Sap 158X0 +1X5 158*0 158*0 18*27 1*14 

Oct 181*0 +1*0 161.75 159*0 12*71 1*32 

Nov 16175 +2X0 163X5 181X5 9,7-04 1.182 

Dec 155*0 +1.75 165*0 163*0 14*00 671 

Jan 167X0 +22S 167.00 165*0 7*12 1*83 

Total 93*14 12*00 

■ NATURAL GAS IffllBt 00X00 ffiUBni: SfnwnBtn) 

latest Day's Open 

prion Change High Low fatt Yoi 

Aug 1*13 -0X27 1*40 1*03 9*05 22.121 

Sap 1X30 +0X03 1X35 1X00 19*94 11*21 

Oct 2X00 +0X03 2.010 1X80 10.182 1736 

MW 2.115+0.001 2120 2X95 9*04 2,131 

DM 2235 +4X005 2X45 2X20 14.360 2*27 

Jtt 2X45 +0X07 2250 2X30 10*21 1,102 

TOM 

■ UNLEADED GASOLINE 



Lrtnt 

Day^ 



Open 



price 

tings 

tOgh 

Low 

tat 

Vol 

/rig 

55.75 

+0X4 

55*5 

55X0 

31.432 17*54 

Sep 

55.75 

+0.65 

55*0 

55 40 31.84g 

10,781 

Oct 

54.20 

+0*9 

54J0 

53*0 10,756 

2X67 

tow 

92.45 

+0.50 

92X0 

52*0 

9*10 

582 

Dec 

57X5 

+0X0 

57X5 

57.05 

5*14 

171 

Jan 

56.60 

+0X5 

5050 

56*5 

2,036 

1 

Total 





01X80 31,157 


■ WHEAT CST EXOObu win; oana/SOlb butiW) 

Sep 32215 -wo 3Z7/D 3200 95*90 19*85 

Dm 33812 -118 VSStl 333/4152*85 33.330 

■Car 341/4 -IM 34512 339/2 33*00 4*95 

Hay 336/D -OH 340/D 334/4 1,655 430 

Jri 322/4 +0/4 325/D 3197 3.455 350 

Dac 332A> +04 10 

Tot* 383*15 58X80 

■ MAIZE CUT (5X00 bu mtn; centa/SSIb bushel) 

Sep 21512 +0/2 217/2 215/0250,905 68.100 

Dm 717* 4)12 22012 217(0 594*60 110XBB 

Htr 226/S -0/4 228/5 226*113.775 18.185 

Hay 233/2 -0/2 234/4 232/4 <0.100 9*90 

Jti 237/2 -0/2 239/0 296/4 37.765 5X75 

Sap 239/4 +012 239/4 23910 2*60 295 

Tetri 89,160 7*66 

■ BARLEY LCE (£ per tonne) 

Sep 102X5 +0X0 102*0 102.00 116 M 

IlM 104*0 +1.20 1IK50 104X0 487 24 

Jan 106*0 +1*0 33 

Her 107X5 +1*0 38 

Hay 109X5 +1*0 ! 

ToH 674 38 

■ SOYABEANS CST (SXMhi met canB/SOtb BnaheQ 

Aug 58510 +810 588/4 58V4121.74& 85,010 

Sap SBm +3/4 572/0 56616 66*60 29,515 

Nev 55910 +21? 563/4 S57/2335XS5 148*95 

Jan 568/4 +2/0 57010 564A5 49,125 6*70 

Mar 57510 +214 577/0 573/4 18.145 3.060 

Hay 58112 *2/0 582/0 579/4 18*30 3.690 

Total 849X20283*00 

■ SOYABEAN Ott. CST gMODjM Mttg 

Aug 24.17 +CL18 24*8 24X8 16,475 7*76 

Sap 24.11 +0.17 24.30 24.00 2O01Z 8.489 

Oct 23*6 +0.14 23.75 23X5 12658 2X08 

Dm 23X3 +014 2142 23.12 35*74 7*2B 

Jan 23X5 +0.10 23.45 2315 3*18 468 

Her 2330 +0.10 2350 2320 3614 641 

Tat* 96,178 25*27 

■ SOYABEAN MEAL CBT (100 tons; 3/ton) 


■ cocoa CSCE {10 tonne* Stannesi 


5X79 

tag 

T73X 

+17 

176.4 

1748 20,703 

8*14 

926 

S«P 

174* 

+0X 

175* 

>74* 17*23 

4.302 

IMS 

Oct 

1711 

+DX 

174* 

172.fi 10X44 

1X26 

753 

Dac 

1712 

+0.4 

173* 

1715 

1708 

5*15 

27 

Jaa 

174X 

+08 

1748 

173.4 

1132 

Ml 

29*83 

Her 

T75X 

+08 

178X 

174.7 

4*64 

674 

Grits.) 

Total 
■ POT 

rATOEBI 

xe (ty 

tonne) 


87*77 22,144 

YM 

Nov 

aao 



. 

_ 

_ 

12,546 

Mir 

10s* 


- 

- 


- 

6X08 

Apr 

225X 

+u 

225* 

2180 

1.1M 

219 

2.458 

Nay 

240* 

-ma 

- 

- 

- 

- 

1*87 

Jon 

107X 

- 

- 

• 

- 

- 

1.257 

Total 





I.ltt 

218 


■ FREIGHT (BIFFEX) LCE {SlOflndex print) 


Jut 

105 

+11 

1440 

1440 

547 

s 

Ang 

1377 

+21 

1375 

1365 

610 

61 

s«p 

1384 

+16 

1385 

1380 

152 

41 

Oct 

1413 

+10 

1420 

1410 

455 

48 

Jaa 

1419 

+4 

- 

- 

263 

- 

Apr 

1448 

+21 

- 

- 

102 

- 

Total 

Oom 

Pnw 



2*oa 

Iffi 

BR 

1438 

1429 






Spice* 

Demand tor pepper Improved further during the 
week end moat suppliers Immediately 
increased their prices or even withdrew from 
the market reports Man Producten. Stock 
positions in consuming markets are now 
extremely low and the wnriabOty at pepper In 
a most origin comries la also vary limited on 
me basis of the present price levels. Old crop 
stocks in hands of holders In Malaysia and 
Brad are held very Ughfly. Spot black pepper 
is now quoted at about US$1,000 a tonne and 
white at $3,100. In the US market the spot 
Mat* pepper price has reached the highest 
level for some years a 92 cents a pound. 


Sep 1474 
DSC 1514 
Mar 1540 
May 1563 
Jri 1585 
SOP 1605 
Tetri 


-4 1496 I486 39X14 5*81 

-7 1 533 1507 17,952 1*91 

4 1553 1540 7X97 6S2 

-8 1568 1668 3950 5 

■8 - 2*44 

-6 - - 1*92 

77,108 8*18 


COCOA OCCO) (SOfl’s/tame) 


10 tty arenas — — HM KA 

■ COFFEE LCE (S/tonnri 

Jri 3630 +7 3630 3878 430 12 

Sip 3S2B -8 3700 3620 19X74 2*28 

Hat 3619 +1 3885 3820 *485 949 

Jm 3611 +11 3700 3615 10*85 1*36 

Mir 3609 +14 3840 3001 3*56 157 

Hay 3888 +28 3620 3820 875 6 

Total 40*1« 8,188 

■ COFFEE ty CSC£(37*OQt»; centt/tos) 

Sap 219.40 -8*0 232*0 21850 22,138 7*33 

Dm 22299 -890 234JO 221X0 11,7*1 2*89 

Mv 22880 -875 238X5 22855 5,107 B« 

Kay 228*0 -8*0 239X0 233*0 1*04 57 

Jri 230X0 -8*0 - 333 8 

Sep 231J5 0X5 - - 38 - 

Tatri 41X59 1BJOB 

■ COFFEE (ICO) (US centS/pOuncQ 

Jri 21 Mm FMiky 

Ooenp.'&ty 183X4 183X1 

15 tty areoga 191.77 189*2 

■ No7 PREMIUM RAW SUGAR LCE {centsflbs) 


Ott 

1111 

-0.19 12.16 

12.1s ixw 

136 

Jaa 

1182 

- 

- 

- 

Star 

fatal 

1183 

-0*4 

90 

1X38 

138 


■ WHTre SUGAR USE tWorm^ 

Oct 318X0 -1.70 31040 317X0 11,106 962 

Dac 313X0 -1.10 314X0 314*0 1*14 2 

Mar 311*6 -0.70 31100 312X0 4*78 81 

May 310*0 -1.00 311.70 311.70 378 14 

Aug 31040 -1X0 - - 345 - 

Oct 297.90 -1X0 - 171 

TOri 17*87 758 

■ SUGAR II 1 CSCE D12.OOO0S: cantt/ lb s) 


Oct 

1188 

•0*4 

11*7 

1183 65,780 7*81 

Mir 

11X6 

-0*7 

11.77 

1185 30X18 2*18 

Ua, 

11.56 

-0*5 

1188 

11X6 


210 

Jd 

11X0 

-103 

11X7 

11X0 

2*95 

79 

Oti 

11.41 

-0.01 

11X5 

11.40 

1,144 

8 

Mar 

11X0 

-0*9 

11X7 

11X5 

143 

19 

TOM 




108*88 OX® 

■ COTTON NYCE (GaOOOIbe: cents/too) 


Ado 

71X0 

+080 

- 

. 

9 

- 

Oti 

7280 

+2*0 

7160 

7085 

8,104 

615 

Dec 

7125 

+100 

7125 

70X5 30*18 1474 

Mar 

73.47 

+2*0 

7387 

7180 

7,166 

57 

N»y 

74*2 

+100 

74X2 

7195 

4,199 

73 

Jd 

75*5 

+1D0 

75*5 

74*7 

1444 

51 

Total 





B3*Q2 1196 

■ ORANGE JUICE NYCE (TSjQQOfoe; oartsflbd 

top 

9280 

♦1*5 

9180 

SMS 14X43 

314 

He* 

95*0 

+1*5 

86.90 

9485 

3X60 

138 

Jm 

99X5 

+1*0 

99*0 

98X0 

4*30 

82 

Mar 

10125 

+085 

102X5 

10180 

1384 

7 

■toy 

105X5 

+4L70 

- 

- 

718 

3 

JU 

107X5 

+0.70 

- 

- 

184 



25,124 544 


VOLUME DATA 

Open Merest and Volume dam shown for 
contracts traded an COAEX. NYMEX, CST. 
NYCE. CME. CSCE end IPE Crude ON are ana 
day In arrears. 


INDICES 

■ REITTSTS pass: 18/9/31=100) 

•ltd 22 Jd 21 month ago year ago 

2156.4 2135X 1993.8 1707.1 

■ CRB Futures (Base; 4/aiS6-10Q) 

•M21 JU 20 month ago year ago 

232X7 231X0 23041 217.99 


MEAT AND LIVESTOCK 

■ UVE CATTLE CME (4OX00BM; Ctittaifca) 

Sett DOTS 0p«t 

price tinge Mgb law tat W 

Aun 59X7S -U00 69550 60200 23 *» 5*08 

Oct 71.800 *-075 72.150 71700 23*50 3494 

Dm 71.(00 -0*25 71.375 71X25 12.475 1*18 

fed 70175 -0350 70650 711.125 9.780 812 

Apr 71.425 -0250 71X50 71.400 5XB -Hi 

Job 68X25 -0X00 08*00 68125 1,103 74 

Trial 75*81 12,137 

■ UVE HOPS CME WOOOttK canoKta) 

Jri 46.725 +0.175 46.950 46*00 242 310 

flag 43.600 +8400 48025 45*50 9X7B 2.487 

Oct 41675 +8450 41.750 41*00 8747 1,425 

DM 41.325 +8425 41.600 41.050 4,505 384 

Fob 41.000 +8325 41.290 0.750 1*11 112 

Apr 40300 +0*75 40*50 39X00 874 123 

TeW a*» MOl 

■ PORK BELLIES CME (AOXOCtoa; cemVba) 

Jri 34.100 +a*00 34*00 33*00 103 42 

Ang 32-020 -0-190 33*00 32.300 4.132 1*63 

M 45*80 +8425 45X00 41900 3*95 W2 

Mr 44*00 +8875 44.500 43*00 118 7 

Hty 44*00 +8500 44*00 44 3 

jri 40.000 +0*00 48*00 a i 


LONDON TRADED OPTIONS 

Strike prtoa S tonne — CaHs — —Puts — 
■ AunmflUM 


(98.7%) LME 

Sep 

Dec 

Sap 

1525 

33 

09 

82 

1550 

2fl 

SB 

78 

1575 

18 

50 

96 


■ COPPER 
(Grade A} LME 

2500 

2550 

2600 

■ GOFFS LCE 

3800 

3850 

8700 

■ COCOA LCE 

1000 

1050 

1100 .... 

■ BRENT CRUDE 

1700 

1750 

1800 


Dac Sep Ok 


268 

,. — 245 

225 

Sep 

10Q 

82 

34 

IPE Sep 


111 

59 

99 

84 

71 

115 

Nov 

S«p 

517 

240 

489 

287 

482 

297 

Dec 

Sep 

144 

8 

113 

20 

87 

42 

Oct 

Sep 

. 

17 

- 

35 

- 

68 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (per benri/Setf +or- 

DUbri S1fiX44£8w +0,185 

Brent Blend (dated) S17-80-7X2 +0.165 

Brent Bland (Sep) SI 7X0-7,82 +0.1 85 

W.T.L (1pm est) SI 9. 53-6X5* +0.156 

■ Ott. products NWEprampt delwry CF (tonra) 


Premium Gaaaikre $188-190 +2 

Das 08 $162-153 

Heavy Fud Ol SS8-100 

Npphlha $167-171 +2 

Jet fuel $165-167 +0* 

Mun Argiw EtMM , 

■ OTHER 

Gold (per boy ob}4 $384.70 -1X0 

SAvar (per troy az& S26*0c -7X0 

Platinum (per tray oc-1 *411*0 -0X8 

PoUadhan foer tray ozj $145.40 -0X6 

Copper (US predj 119Xc 

Lead (US prod.) 37.75c 

Tin (Kyoto Lumpur) 1159m +038 

Tin (New Yotk) 24&S0c 

Zinc (US Prime W.) Unq. 

Cattle (Bva writfimG 12031 p -0X2* 

Sheep (Bvo weighOt^O S3.74p -3*3* 

Plgi (fcre wetghne 70X6p -3X8* 

Lon. day sugar (raw) $303.0 +1.4 

Lon. day sugar (wte) 5346.0 +3.0 

Tate & Lyle export E312.0 +6X 

Barley (Eng. lead) C107*t +875 

Mates (US N03 Ysflaw) $143* 

Wheat (US Owk North) $180* 

Rubber (AugJV 97*Qp +5* 

Rubber (Sep)¥ D6*0p +6* 

Rubber KLRSSNol Aug 337*m +4* 

Coconut ON (PM )§ $390*2 +80 ^ 

Prim Ol QAatayji| $8S80q +15 -sd. 

Copra (PMQ§ $406 

Soyabeans (US) S17BXz ' +3* v 

Cotton Outlook ‘A’ Index 81*0u -0X0 ^+ 

Woottopa (6<s SupeO 42Sp , 

C per torn* union oOmiww* riatad. p pencafl^ e cortslQi. •’ 
r rriggnA®. m canta/kp, t OrtCrc. q/oft 2 AuaT - 

Sap. w Sep - V London HiyWaA 9 OF MMrian. } . 
Sufflon marMt dose. ♦ Sheep (LNe we+ytf priced ■ 
Chenge on Meek. pnvAribnef prieasO Woee ere tor pmw- 
ore day. 


+86 

+ 6 * - - 
♦4* 

+80 "• 

+15 tad.-.. . 


BENCHMARK GOVERNMENT BONDS 


Red 

Coupon Date 


Day's Week Month 

Prtoa change Yield ago ago 


Australia 

Belgium 
Canada * 
Denmark 
France 


Germany Bund 
Italy 

Japan Nt 


STAN 8000 
OAT 5.500 


No 119 4.800 

4.100 


985200 

95.8200 

63X000 

983000 

104X250 

87.6400 

99.3600 

88.0000 

104.7050 

983960 

92X600 


9.54 9*9 9.61 

7X7 7.B1 7.96 

9.16 865 9.41 

7X6 809 816 

6.58 890 7X3 

7*1 7.38 7.54 

6.64 6.78 7.08 

10*41 10X1 1845 

167 863 564 

4*4 4*3 4X6 

6.88 580 7.12 


Swan 

8.000 

05/04 

85 7500 

-0.050 

10.37 

10.32 

UK Gats 

6*00 

08/99 

92-05 

-8/32 

7.92 

7X3 


6 750 

11/04 

88-15 

-7/32 

axa 

8.19 


9.000 

10/08 

105-00 

-10/32 

a. 38 

8.32 

US Treasuy ■ 

7X50 

05/04 

99-25 

-9/32 

7X8 

7X3 


6.250 

08/23 

8«-l9 

-7/32 

7.57 

7X4 

ECU (French Govt) 

6.000 

04/04 

88.0000 

-0X30 

7.78 

7.87 


Urricm cXnrifr 'llm y orti itm-Ddy 

T Ditto icrc*rtng ew r M u iMiV j Ux at 1^5 per cent payable O y i 
Prices: US. UK In aznds. otm n deanre 


'/WdK Uctt makn e ta n dw a 
kknn) 

Source: UMS Memaacnal 


ECONOMIC DIARY - FORWARD EVENTS 


TOMORROW: A special 
cQdlerence of Sinn Fein, the 
IRA’s political wing, will 
debate its long-awaited 
response to last December’s 
Downing Street Ulster peace 
declaration. Parliamentary by- 
elections in the Ukraine in 
more than 1.000 constituencies 
which failed to elect members 
in April elections. 

MONDAY: US existing home 
sales (June). European Union 
budget ministers meet in Brus- 
sels. Asian Regional Forum 
holds congress in Bangkok. Mr 
Fidel Ramos, president of 
Manila, makes state of the 
nation address to congress. 

TUESDAY: Confederation of 
British Industry publishes 
industrial trends survey (July). 
US consumer confidence 
(July), rmt signalmen stage a 
48-hour rail strike, starting at 
noon. House of Lords rises for 
summer recess. Thames Water, 
National Power and Norweb 
hold annual meetings. 

WEDNESDAY: Bricks and 
cement production and deliv- 
eries (second quarter). Mort- 


gage possession statistics (sec- 
ond quarter). Mortgage arrears 
and possessions (January- 
June). US durable goods 
(June). European Union eco- 
nomic and finance ministers 
meet in Brussels. Mr John 
Major, prime minister, gives 
European Policy Forum lecture 
on “The role ami limits of the 
state” in London. English 
Tourist Board annual report. 
300th anniversary of the Bank 
of England. Preliminary results 
from Reuters. 

THURSDAY: Energy trends 
(May). Digest of UK energy sta- 
tistics (1093). Major British 
banking groups' mortgage 
lending (June). New vehicle 
registrations (June). Mr 
Alberto Fujimori, president of 
Peru, gives state of the nation 
address. Interim figures from 
ICI. 

FRIDAY: Economic trends 
(July). Monthly digest of statis- 
tics (July). US gross domestic 
product (second quarter-ad- 
vance). Working party on Chi- 
nese accession to Gatt world 
trade body meets to discuss 
draft accession protocol. 


DO YOU WANT TO KNOW A SECRET? 

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tichange- rale specialists !or Over 20 years ^ 


US INTEREST RATES 

UndiUnw Treasury KUs and Bond YWda 

OK nodi +X7 Two year 

Mm ran TU Tso monOi 4*0 imcyaor- 

Btriorkmraa 5*2 nranonti 444 Are ywr 

FaLfunds — 4*J £h merit) 4 Si 10-ynr 

FMJWittril ri nre i— 1- - Doe rear 5.49 30-yw 

BOND FUTURES AND OPTIONS 

France 

■ NOTIONAL FWH4QH BOWP FUTURES (MATIF) 


■ LONG GILT FUTURES OPTIONS (LUTE) E50X00 64Uw of 100% 
StrBca CALLS ■ PUTS 


— BX8 

Strike 

Price 

Sep 

CALLS ■ 

Dec 

Sap 

_ 8.40 

102 

2-00 

3-00 

1-08 

— 6X7 

7X4 
7X3 

103 

1-26 

1X4 

1-32 

104 

0*0 

2-Q7 

2-02 


Ett. vof. tore. Care 1560 Pm am. Pravtaua cuya open ht, Crib 07079 Pun saea 


Ecu 

■ ECU BOND FUTURES (MATIF) 



Open 

Sett price 

Change 

High 

Low 

EsL vol 

Open frit 


Open 

Sett price 

Change 

Ugh 

Low 

Eat voL 

Sap 

117X8 

116.78 

-0.44 

117X2 

116.74 

111,880 

119*84 

Sep 

85.30 

84.70 

-0.48 

85.40 

84.70 

2,770 

Dec 

118.66 

115X2 

-0.44 

116X6 

116X2 

1,400 

14.188 

Dec 

. 

84X6 

*.48 

_ 

- 

. 

Me 

115.72 

115X2 

-0.42 

115.72 

115*4 

150 

2.485 









tl US TREASURY BOND FUTURES (CBT) $100.000 32ndS Of 100% 

Open Latest Change High Low EsL voL Open Int 
Sap 102-25 102-29 +0-06 103-01 102-21 347*65 383*32 

Dec 101-30 102-04 +04)6 102-07 101-30 1*16 59*41 

Mar 101-12 101-14 +4WJ5 101-14 101-12 108 4*74 


Japan 

■ NOTIONAL LONG TERM JAPANESE QOVT. BOND FUTURES 

fUFFQ VI 00m 10011a of 100% 

Open Ctose Change High Ixw EsL vol Open M. 
Sap 109X5 - - 10869 10848 1648 0 

Dec 10860 - 108X9 10859 216 0 

’ UFFE ccnwn traded on AFT. AH Cpen biteraet Sgv era tar prawtow (tay- 


H LONG TERM FRENCH BOND OPTIONS (MATIF) 


Strike 

— 

— CALLS 

— 

— 

— PUTS — 

— 

FT-ACTU ARIES FIXED INTEREST INDICES 









Price 

Aug 

Sap 

Dec 

Aug 

Sap 

Dec 

UK OUta Price Mtoee 

Fit 


Thur 

Accrued 

jed ad) 


Frl 

Daj/s 



ad ad 


IIS 

- 

2.61 

- 

0.10 

0.77 


Jri 22 

change % 

Jri 21 

Interest 

yield 

todas-Onlnd 

Jri 22 

chanoa ib 

Jri 21 

Interest 

yttt 


116 

- 

1X2 

2.38 

0.34 

0X6 

- 

1 Up to 5 years (24) 

122X4 

+0X3 

122X0 

1X8 

0A0 

8 Up to 6 yeare£2) 

7 Ovw 6 ware (11) 

8 Al Stocks (13) 

187X9 

-0X2 


1*7 

2.53 


117 

0X6 

1X4 

1.87 

0.80 

1.40 

183 

2 5-15 years (22) 

3 Ovar 15 yaarafel 

4 InedaomaUes (B) 

141X4 

-0X9 

142X7 

1.86 

7X6 

17113 

-0X7 

17181 

0*0 

3-gfi 


118 

0X0 

0X6 

0*5 

1.40 

1.35 

1.97 

- 

157X6 

18173 

-0X4 

+OX4 

150X6 

18111 

1.19 

119 

8.11 

7X8 

17182 

-0X6 

173X4 

0*0 

3.16 

^SATEj 

Esl vol total Crib IB. 763 

Puts 17,776 . 

PimtaM dare ochi mt_ Ctata 371,743 Pins 384X12. 

5 Aff stocks (81) 

Yields Jd 22 

139.16 -OX6 

Low coupon yWd — 

Jd 21 Yr ago ttgh 

139X6 

Low 

1.78 

Jri 22 

7X0 9 Dobs and kuna (74) 

— Medium coupon deW 

Jri 21 Yr ago tjgh 

131*3 

Low 

-045 

Jri 22 Jri 21 

131.62 186 

■Tsrvss'— ■ ■ 

5X< 

low 


Germany 

■ NOTIONAL GERMAN BUND FUTURES (UFfE)* DM250,000 IQPttW o( IQOfri 

Open Sett price Change High Low Eel vol Open Ini 
Sep 94.10 93X6 -0*6 04.15 93.46 104603 173384 

Dec 3315 92X9 -039 9830 92.86 1105 12620 


■ BUND FUTURES OPTIONS (UFFEI DM2SQX00 pointa of 1O0% 


Seiko 

Prtco 

Aug 

Sep 

CALLS - 
Oct 

Dec 

Aug 

Sep 

PUTS 

Oct 

Dac 

9350 

0.06 

0.95 

093 

1.31 

a 

0.80 

1*4 

1.02 

9400 

0 

0 68 

0.72 

1.10 

044 

1.12 

183 

121 

9450 

0 

0.47 

0*4 

0.90 

0X4 

1.41 

115 

2*1 


Eat vol. total. CoM 17SS+ Puts 17964. Pravtaw day's opal WU CM* 263214 Putt 2SQ217 


■ NOTIONAL MBMUM TERM GERMAN GOVT. BOND 

(BOBLHUFFE)' PM 250,000 IQOlhfl Of 10Q% 

Open Sett price Change High Low 

Sep - 9950 -OX1 

Italy 

■ NOTIONAL ITALIAN GOVT. BONO (BTP) FUTURES 

(UFFE)' Lire 2Q0m ICotha o( 100% 

Open Sett price Change Ugh Low 

Sap 104X4 108*2 -0.52 104.48 103.43 

Dec 103.X 102.42 -0.42 103.00 103.66 


Esl vol Open m. 
0 76 


Esl vol Open mL 
23192 76221 

5 110 


■ ITALIAN GOVT. BOND (BTP) FUTURES OPTIONS fUFFE) LragQOm iOOlhs ol 100% 
Strike CALLS PUTS 


Strike 

Price 

Sep 

CALLS 

Dec 

Sep 

10350 

i.ee 

173 

1.84 

10400 

1.41 

2*2 

1X9 

10450 

1 18 

2*2 

2.16 


E« vri total. Crib IBM Pub 2B30 Pwlore da/t open tat. Colls 3GOUJ Ruts 20892 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MB?) 

Open Sou pnea Change high 
Sep 9882 90.75 +O.OT 9T.05 


Low Eat vol. Open frit 
90X5 19,400 103.164 

211 564 


■ NOTIONAL UK QILT FUTURES fliFFE)* E50.QOO 32nfls of 11)0% 

Open Sen pnee Change High Low EM. vol Open Int. 
Sep 103-06 102-29 103-22 102-22 62376 115127 


5 yra 7.98 7.96 G.54 854 (21/6) 5X7 (19/1 

15 yro 827 826 7.78 870 p«) 6*0 E0/1 

20 yra . 824 8X3 7.92 6.75 (1/ffl 8.41 £70/1 

Irrod.t 8X7 8X0 806 8X6 (1/G) 6X2 &4 / 1 

tr>dox-Hnhod InUgBon rate 5% — lnfiadon rate 10% 

Up to 5 yra 3.64 3.01 2X6 3.94 (1/0) 813 (4fl) 2X6 2X1 2.08 2X6 n/» 1.19 1160) 

over 5 yra 3X0 3.84 845 899 C21/BJ 2.88 CO/f) 3.67 884 3X8 870 (Htt) 2.70 (20/l( 

Poba Altana Syeare 16 years 25 years 

0^7 0*3 8X3 iaOO PI/6) 7-19 (1W1) 0X4 TES 8X4 9X0 (1/0) 7*3 (20/1) 9*0 0X5 898 8B4 (1/Q 7 AS (10fl) 

Average poos redemption yMda are tiwwn above. Coupon Banda: Low: 0%-7^K; Medium: 8N-104t«: High: 11M aid over, f Ret yield, ytd Yaw to date. 

FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

July 22 July 21 July 20 JUy 19 July IB Yr ago WgW Low* July 21 July 20 JiJy IB J|jy IB Jtiy 15 ' 

Oovt.8ece.8JK) 9843 9846 9871 9889 94X3 97.98 107.04 90X9 QM Edged bargains 114J5 132.1 1983 128S 1379 

Fixed Internet 111.73 111.75 112X7 112.31 11843 117.02 133X7 107*3 S-day average 127.8 125^4 127X 121.5 112* 

O ov amma TiSgcunttaa ring? wnpaaare : lg.40 fi/ltiS. low 4818 (3/1/79. R*od Mmw high rince compStalon: 133^7 (21/1/84 . tow 5083 pn/7q . Boris 100: Oowmmriit eocuHsi 1VK7 

01 OnO HAH vwitiff Iwo. 3E BCuVfCy wUCrin IH n a a OQ lHf4 


7.03 870 (1/B 6X2 (19/1 

7X9 892 (1/6) 839 (20/1 1 

7X7 8X2 1/B) 842(20/1 


825 8X3 7X3 8X1 (2QIB) 

887 864 814 9X4 (1/S 

853 8X0 818 806 (1/8) 


25 yeara 

830 9X5 8X8 884 (1/6) 


UK GILTS PRICES 


NriM W Hal Price E • 

StHrt^ (Urea qi to Rre Tauti 

Btil 1Z L jpc 199+ 1242 51910QS«ti 

TrwBpcIUSW 8*0 517 701* 

12pc 1995 11.62 5.18 103 A 

Estl 3pc (Ni 90-6G 305 5.18 9BL 

KWraclWG 9X3 570 10*,4 

Traasi21iKiW5^ — 1178 507 108,’, 

1 +001996 1264 6*8 T10j» 

ISLpcIflBWt 1337 8X7 1I4A 

&di 13 (are 1988# 11*4 6X9 111 

CWItntol 1C*K 18Q6 842 7 03 1Q6A 

Trees Cm 7pc 1997ft 7.01 7X8 

TfB831ftKl997tt 11.67 720 113^ 

&dl!0\lPClS97 978 7X01O7V* 

TteaaaJoc 1«7tt 8.48 766 \<OX 

Easti 18pc 199/ 12«3 7.88 1M« 

8%K193S 8*1 7.75 HfitJ 

TiririZtoelBBBft 7*7 7.78 Wt 

Trass (Ape 1995-fiUft- 7X0 7X4 9BU 

I40C98-1 1174 E03 ngj 

TraBBlS'xK-atttt 12*3 786 12® 

Eadl 12PC199B 10X0 602 1144* 

Trees 9^2 KT999tt 9X0 7.0B rosft 


1984 

v- Mali low 


_ — TINS — 1994 _ 

Wriw W HM MaC+g- Mgti Low 


HBttt (1) OWoe£ +w-J» 


_ 1994— *•', 
U IBP . 


RrataRtteriiTajn 

Eiti112\4PCl99B 

Tinas IQLjpe 7090 

TrenEKieoaft — __ 

Gonresan lotuic 1989.. 

Trees Fdo Hw> tb 

SpcJOOtttt 

Trees 13K 2000 

1 0 k 2001 

7Kmtt_ 

Tpe'Oi A 

S+UK2002 

toc20Q3ft^ 

1 OK 2003 

• Tre mka. u Tm-i 


. 1050 814 1151) 

BXO 8.10 KBWi 
8Xi 7Xi ia&a 
9.« 8*2 10W, 

. _ 9QH 

67! 623 1003, 

1072 8.40 121 H 

928 8.43107 |Jti 
7.SQ OM 93A 
7X1 8*7 934 

9X9 849107JM 
8.19 538 B7J1 

9.14 949 100I2 

kM m nan-rarictants on 


10M 
'07 A 
_ Mi 
-A iotc 
-A 

-it H7|i 

-A i»a 

-5 HTR 

— 112 i, 
100H 
12114 

-i 114* 

— 119.1 
ism 

-i 1WB 
-A 'DBA 
-A 102 
-A 1316 
-A 14M 

-A liSl 

-A MBA 


-A 128A 
-£> 121A 

-A HUH 
-A 121*3 

— 10M. 
-A USA 
-A 138B 

122.V 
-i. uu 

— WA 
-A 123* 
-A 113B 
-A 127.V 


tlWM 1Uzpc3U1-4 

1004 — 

1016 O3iwwsiflnBia*2O04.-. 

’Si 

Coiwfl ij k2D05 

TraaHSLat* 2SB3-6 — 

IMS 7V0C3M6ft..„_ 

naa ** ana - 8 # 

JIM, Trias 1 UK 2003-7 — 

my} TieasaijpcWOJtt — 

884 la'jK'OJ-a 

IIPIl TrireSpc 2008ft 

108B 

101 u 

11013 

1044 

ggjL 

S4H o*arRRe«airttn 

117V Trial BkSSXB 

12443 1ri®6T/4cc20l0 

1124 fan Sac Ln 2011 ft 

1034 Trias ftx 201 2ft. 

Trios 5 >jk 200B-12ft_ 

Treas 80c 3013ft 

71«pc 2012-1 5ft 

Treat WiK 201 7ft. 

113% Eediltte ‘13-117 

108% 


975 11+A 
7.19 7+U 

944 1071* 
8*7 884 
941 1074 
97* 1234 
8*7 954 

945 98% 
8.78 1175* 
B*B 10% 
8.78 130U 
8*8 105A 


925 9*7 87 

7X0 92S 82, i 

651 8*5 105{J 

948 8*4108Ari 

7*5 8 07 re U 
9*4 9*1 974 

913 9IB MHA 
8*4 8*7 104^1 id 

404 8*7 132R 


-d 12931 lion 

-A teA hii 
-A 1254 109 

-A 1051* B5H 
-A 12519 iro*i 
-A 1+3i'. 119A 
-4 112B 91 >1 

-it ITU, B3A 

-A 13W. 1105. 
-a 11 M sail 

-A 1514 125+1 
-A 1241* 101 


2w'ae (87 x) 

4*ie;HSft_-(l3S.6 ) 

2«2K , 01 (793) 

2«jpeT13 (7981 

4\BC04ft (135.9) 

2W0B (BOX) 

2ijpC0fl .(78.8) 

2/aPCTI (74X0 

2»2 Pct 3 ma 

2hPC T8 -MIX) 

2^ ‘20 B30) 

(07.7) 

4i i K , 30ft — 03S.1t 


ire m\ -h 2Bft Wf 

941 1084 > ^ ^ 

100 1664 1TW 25 


149 183 1S0J) 

i+a 3*0 loan 
3X4 180 1875, 

3X2 0X4 ISft 
166 166156%ti 
3X8 188 ISM 


-i 173+1 IS**,'’. 
-4 U«t VFf' 


170 3X8 

173 IM 


185 1094 
IBS 108U 


-*i USA BO 
8M 784 
12BH 1014 
-H I27ri 1014 

»17B 034 
*41 1144, Or 4 
-h 12«. 

-a 1581* 1271. 


Pttapecttve rati redemption rate an pra)ectBd InBtilon at fl> W* 
end P) 5% (b| Rgureo fct pera nt h ew show RP1 bti* »■. 
hoeaig 9" 8 raorths prior to Ibckm) and hare been e*i»“ 
reflect rabeatog of RP| to 100 to January 1067. Conwretan N® 0 '. 
3X45. RB lot Ncwendstr 1933: 141* and lor Jure 1984! 144.7. 

Other Fixed Interest 


SS ENCV •’•■tCIJE-T 

WU -Ji iSBfi J® • 


1M.J -47M +A M 44S 

921 - «H 6+« 30U 

89a 0»3 1 2tt'fl1Nt — _ 900 - 50H -+» 7| 

lOft 1ri»3|*«« — 948 - 3S% «L 33J. 

iSui “* - Ml +4 38* 284 

105U Treas. 2 ‘a* mo - a6\ -4* 

Austen tateri. m 4 e* dMdena acting mkFfirien era rinen In pounefa. 


Ahlaa Dor 11 1(2010 

istoDreiBiHpeaM^ 

BlHm1l<ape20l2_^„ 

kemtcresHipcia 

0DcCre1B99__„_ 

iapcw-2 — 

Hn*o fluawc igpq 2011 _ 
Itett 131 jK 2006___ 

UrewriSipcIrred. 

LOCttc-att. 

HandtoririilljBcMOT. 

MN.Wfr.3pc '9 

ttiNtt N«k 3^pe20Zl. 

4LecLam 

IMHei 3*1 ISias 2008 


-WM- _ „ 

M Bn WeeC+ri 

923 988 1ZM3- 
ftX7 9B5 1104 — 
9X4 9.00 1^2 _ 

942 - 101 - 

M2 - 1(E - 

UXB - 111k - 
UL36 Mf 144B — 

10.40 - 129L - 

BL33 - 371a — 
WB - 33L - 

9X6 027 11M* - 
4X2 7X0 89 1 * — 

. - 449 1324* - 

- 4X8 127b - 
HU - 137 - 


_l®f- 
+pr- W >g 

— 

laaH iw 

14! » ! 

— ,W J I % 

— |<sl » JR 

— '253 

— 444, ^ 

— 4o«a aj 
1SP+ «■ 

78 6B>: 

IflM, T»J 

__ 15ft 







CURRENCIES AND MONEY 


MARKETS REPORT 


Dollar rallies 


The dollar continued its rally 
on foreign exchanges yester- 
day, assisted by an onslaught 
of verbal intervention from 
senior US administration offi- 
cials, writes PMUp Gmoitk. 

Mr Alan Greenspan, the Fed 
chai rman, again reiterated the 
virtues of a stronger dollar, fol- 
lowing similar comments ear- 
lier from Mr Lloyd B entsen , 
the US tre asury secretary. 

The mazkets took cheer from 
this shift in sentiment, gi rd the 
dollar closed in London at 
DML5956 against the D-Mark, 
well above its Thursday close 
of DML576, but off flw high for 
the day of DMl.6028. 

Against the yen it finished at 
at Y96.72, down from the high 
for the day of Y99JL4. 

Dealers said same of the dol- 
lar's retreat could be attributed 
to market disappointment that 
Mr Greenspan had just 
repeated what be had ear- 
lier in. the week. 

The stranger dollar pushed 
the D-Mark lower in Europe 


against most currencies. 
Against the lira it f hp gh od at 
L99SL6 from L997.5 on Thurs- 
day. 

Sterling also suffered at the 
hands of a stranger dollar, fin- 
ishing at £1.528 from $1.5375. 
The pound received scone assis- 
tance from the UK 2nd quarter 
(SOP estimate of OB per cent 
growth. This was higher than 
the market forecast of OB per 
cent 


■ PWd hi Maw Yorle 

MB ■ — Lstat — -Pm. dose — 

2 spot ixsao 1J«J5 

1 o® 1X312 ts m 

So® 1X305 yam 

i»r 1X280 1X185 

■ In the absence of statistical 
releases, the market was left to 
pander more supportive talk 
for the dollar. After over ni ght 
comments from Mr Lloyd Bent- 
seta, the US treasury socretaiy, 
that he believed “very 
strongly" in a strong dollar, nfr 
Greenspan reiterated his view 


r • Rwi tag ■ w 

; wirpeii' " .--'y ■* • VSsHSer T*'- - * 1 " $parfc - r . ; . - ..... 

---te 

: Ar-rf— V 


Dtfperg’. 

• 2 A8 - — 


2A6 -1 


. 2 M. 


French franc 

FFrperDM 

3M — — 


Mm fat tn 


.134 ■ « -!■*■ r»«~1 


r. ' . 134- 



m y - tow ; m oon 

..sooroaFTtiMpna* . .v;:“ • ■ 



Money Market 
Trust Funds 


fluMaMMaN 


. w-ganu-faeaiar OW 


GAP Boam Mnegeant Cm Ltd 
wr—rwk. xafattg owzx 0133770114 

(MEariDwattM- 4» -l (OHM 

DenM Ow ?T *Moa I 4JS - AMlS-UM 

0«Mti0HfISn®Ml US -I L»ls-4k» 

u» CWF CtarnstOmait Aecoust 
itamumaEtirM .otwbbwib 


Jm -1994 ' «M 


24 . 

Jun 1984 


that a strong currency was in 
the national fotar frqL 

Mr Steve Hannah, head of 
research at IBJ Tntgmatinwni 
in London, said a “180 degree 
policy reversal** from the 
administration had now been 
wi tn essed.' Until very recently, 
senior administration nfflriaia 
were w pHwf in their apposi- 
tion to higher rates. 

Now Mr Bentsen and his dep- 
uty Mr Larry Summers are fid- 
some about the need for a 
stronger dollar. But as Mr Han- 
nah points out tins must mean 
that are prepared to accede to 


the Fed tightening policy fur- 
ther. 

Earlier this week Mr Green- 
span indicated that a stronger 
dollar may be necessary to 
revase inflation expectations, 
and that he would be prepared 
to raise rates farther to 
achieve this 

Mr Hannah commented: 
“They have given the green 
light to Mr Greenspan - if you 
want to raise rates we will not 
stand in your way," 

Analy sts remain more bull- 
ish about the dollar's prospects 
against the D-Mark than 


a gaVnst the yen. Japan's large 
current account surplus and 
US/Japan trade frictions are 

arton as TmHpTpjnrrfng tin* yen. 

■ German call money rose to 
435/90 per cent from 4.75/435 
per cent after the Bundes- 
bank/s decision to set the next 
four repo tenders at 435 per 
cent, compared to the current 
repo rate of 438 per cent 
The Bank of England pro- 
vided UK money markets with 
£L289bn assistance after fore- 
casting a shortage of £135bn. 
Overnight money traded 


between 3% and 5% per cent 
Volumes in the futures mar- 
ket were low with the Decem- 
ber euro&texhng contract trad- 
ing only 11,670 lots to close 
unchanged at 93.91. The 
December euromark contract 
traded 44327 lots to fi ni s h at 
95.01 from 95.09. 


*122 £ S 

feqpry 154314 - 15BJS18 102320 - 102420 
ton 2731 no - 273100 174U0 - 173000 

AmB 04337 - 0.4548 02070 - 02075 

fta® 347043 • 947BGX 227200-227300 
Ml 300? IP - 310736 202400 - 203400 
UA£ £6187-50301 38715-38735 


Cant N. of flo. d Ctamft af Bratton* 
eFM3M.ldUt»HaV5« OT-aattu 

Oapcto I 440 -1 (Mlw 


Money Market 
Bank Accounts 


T™ £71 ] «*] ™ 

nunr-bum — *m in f5l £ 

CUtHHW 3.73 w *■ S 

Hjjfap nrmn I 173 106 1 1711 “ 

Dawobn W IMmOh 50D M !■ 

«ajjteamn[ff>O40u 

tllMblW 1-721 SjOTI -ICS 

CMM0+1 Vmv 1 7 JO MB] J3 " 

QM.fWHHtnl U0 M0 I 7JI 


nwlmmiinwwiMmM 

KHMi^cnn 

n-m Joan run an 

s«8iffiss= a a 

tSOBjm* IIWM W® 

HriBn BUa Soc Amt Roeenr* ChM® Ag 

TMtUMltwHOM 0422336 


POUND SPOT FCRWA.RO AGAINST THE POUND 


DOLLAR SPOT "ORvVAr.D AGAiNUT THE 


Bo^un 

Oanrnmfc 

pr, ,f_ r . 

hnnra 

Ranos 

Gamy 

Qroactt 

tralanel 

IMy 

Ltramboug 


(Sett 17.17B5 

(B ft) 60.1778 
PK4 85634 
(FM) &0569 
CFFf) &3403 
(DM) a 4379 

Pf) 3S&542 
(IQ 1JM43 
(0 242024 
(Lft) 60.1778 
(R) 2.7366 

(NKf) 10.6264 
(Es) 240S73 
(Ptaj aoiim 
(SM) 11.9800 
(SFk) 2J0BS8 
® 

- 1-2745 

- OS4389B 


AfQonfln* (Pmo) 1^268 
Bnz> 99 1^317 

Canada fcsj 2.1055 

Maodoo (Now Paao) S2014 
USA n 1.5280 

PacfBc/WUda Eaat/AMoa 
Auatnla (AS) 20613 

Hong Kong 9KD 115048 
Ml (Ra) 478013 

Japan (T) 160840 

Malaysia (Ml) 08585 
Now Zealand fCS) - 28241 
PMWnoa (Paao) 402616 
Baud Arabia (SB) 6.7302 
Singapore (83) 25098 

8 Alrtca (Cc»tl) n 58628 
S Africa (RnJ (R) 68980 

Soum Korea (Won) 122fi.11 
Tahm (Ft) 407424 

TTmlland pq 302141 

non Hb tar Jt4 21 . BUWMr aonada 
bilaa ta®d to am Manat mi 
tha Odar Spot tabtaa dwMd kora IX 


40.1171 729 
+0L32fl 381 
400488 603 
400274 489 
400339 382 
400148 367 
40388 329 
400009 135 
4033 904 
40326 381 
40017 347 
400429 221 
41.051 778 
4-1.168 923 
400192 723 
400194 647 


861 1720GB 

167 606460 

6B5 95290 

648 8.1190 

424 8L3885 

390 24676 

756 371^021 

isi imse 

143 244104 ■, 

167 605480' 
384 2.7513 

286 107138' 
166 252261 1 
142 202X87 ' 
677 12X786 ■ 
669 2.0772 


DMBOatft nm montha One year Bank of 
Rate MPA Bata HPA Rata %PA Eng. tncfax 


17.1752 03 17.1633 04 - 114 A 

501729 Ol 602179 >03 502179 -0.1 116L1 

9^704 -09 9X865 -09 99304 -07 116.7 

62.1 

8X437 -05 03481 -04 03806 Ol 1005 

2^4375 02 £4386 02 2X166 09 1202 


CJoalng 

nitHsoW 


Charoa BUfeffar OaVa ndd OmbmUi Tina mootha On* year OP Morgan 

Mm Rata WA Rata MPA Rate MPA index 


Finland 

Ranoa 

Oarmany 


-05 1.0156 

-03 2439XB 

01 509179 

02 2.7337 

03 106329 

-03 254X83 
-2.7 202X38 
-22 12X52 

09 2X611 


-05 . 1.018 
-3.1 2492X4 
-OX 602178 
03 2.713 

-03 106189 
-79 

-29 206X13 
-24 122726 
09 2037 


400066 739-781 12829 12674 12754 -08 12766 -07 1278 -03 


-am 254 - 261 1X407 1X199 - 

-00005 299-835 1X340 1X290 . - 

-00134 047-062 21252 2X962 . 2107 -09 21107 

-00312 960 - 047 52483 6.1870 . 

-0X095 277-282 1X430 1X220 1X273 05 1X264 


2107 -08 21107 -IX 21377 -IX 


Mand 

m 

1X064 

hahr 

4) 

1583X8 

Luxembourg 

<Lft) 

32X400 

itoiiMiB my 

P) 

1.7904 

Hwiri 

CNKO 

6X640 

Portugal 

m 

103X00 

Span 

m 

131X70 

Sawdan 

OKO 

7X406 

9wKzariand 

<SK) 

1X520 

UK 

09 

1X280 

Ecu 


1.1989 

3DRt 


1X8069 

Amartoaa 

Argarina 

<P«od) 

48986 

Bad 

W 

49670 

Canada 

PR 

1X780 

Marioo NaarPeari 

3/4042 

USA 

n 

- 


40148 410- 
40421 300- 
40X692 580 - 
40X605 678- 
+0X56 580 - 
400195 850- 
43X5 100- 
-00108 064- 
411X5 345 - 
40X16 200 - 
■*00222 901 - 
*0X711 530 - 
41.7 500 - 
41X7 520 - 
400812 368 - 
40X21 516- 
-00095 277 - 
-0X137 906- 




460 112600 
600 329490 : 
600 B2759 

773 52921 

590 64727 

960 1.6026 

30Q 241X00! 
074 1X102 

460 1587.00 
600 ”*4°" 1 

906 1.7906 

SO 69774 
700 164200 ’ 
020 131200 - 
448 7X787 

523 1X685 

262 1X430 

982 12040 


-4.0003 986 - 986 0X987 0X985 

40.0055 360 - 380 02380 0.8360 

-40002 777 - 782 1X796 1X757 


-40296 603-623 20811 20640 20613 00 2X826 -02 20607 -49 

-0X727 021 - 075 11X194 11.7590 11X009 04 113888 -02 11X068 OX 

-43368 834 - 081 484040 47.7480 - .... 

-0X88 789-910 153X60 150X40 15048 32 149X96 3X 145.7 34 1829 

-40252 570 - 589 3X891 3X417 - - - 

-0X208 226-255 25521 26148 2628 -IX 25358 -IX 25581 -IX 

-42517 730 - SOI 40X50139X725 - - - 

-40381 289-315 5.7806 5X083 - - - 

-0X122 067-109 .23343 23020 - - - - - - . 

-0X019 502-643 5X721 5X050 - - - 

440254 816 - 144 7X200 6.9274 - - - 

-11.04 622 - 699 1241X0 122201 - - - 

-0X182 300 - 548 41X983 40X895 - - - 

-0.162 90S - 356 38X060 38X770 - - - -.- 

h Bia fttund Spot taCIa rfiow orSy B>a dwlnal plrna. r m— d ratta — i m dH c^ qoulad it> an «na*a> 

.61*9 NtarqMWribytf Barter Briwd. P a w a»«^» IBM »1«LBM.oma»«lliM ra Mataiaei Maid 
E WM/RBITER8 CtXSINQ SPOT RATES. Sana HUM aa n wdad by tf» F.T. 


PanSrASdcfa EaatMMoa 


AueMa 

(AS) 

1X491 

Hoag Kong 

(H*3> 

7.72 SO 

hfa 

ft) 

31X600 

■bpan 

CO 

947200 

Mriayab 

m 

2^07 

Now Zealand 

(N2S) 

1.8820 


(Paao) 

243500 

Saud Arabia 

(SR) 

47603 


Singapora (St) 1X117 
S Africa (Con) n 3X983 
SAfefca (FH) (R) 4X600 

Sou® Korea (Won) 802450 
Taiwan (T5) 26X848 

Thatand (BQ 25X100 

in iltar Jd 21. BhMAr )»wk 
but an fcopSad by eum kanaat ma. 


-401 1 486-485 
440007 254-264 
-40238 800-500 
+0036 900-S00 
-40003 902-812 
-0X033 613-528 
- 000 - 000 
-40001 600-606 
440016 112 - 122 
40X218 965 - COO 
44045 700-900 
-22 000 - 900 
40X25 810 -685 
+405 000- 200 
kinaDoaB-feocubla 
UK, ftbndS B=Um< 


1X573 1.8510 
28X000 26.1000 


11X462 

-43 

11X396 

41 

11.1818 

47 

1042 

TOBTW 

-47 

*9ong* 

-47 

32965 

-44 

1047 

R JWK 

•-1X 

6X78 

-1.1 

8X13 

-49 

106X 

5X783 

-47 

6X778 

-04 

5X1 BS 

-48 

77.0 

5.4632 

-IX 

5.4892 

-48 

6X47 

02 

1040 

1X962 

-45 

1X962 

-42 

1X682 

48 

1047 

241 .a 

-1.7 

242X2 

-IX 

2447 

-IX 

89X 

1X052 

IX 

1X03 

09 

14941 

OX 

_ 

158403 

-3X 

1597X3 

-45 

1635X8 

-43 

747 

32X6 

-47 

32905 

-46 

32X6 

-44 

1047 

1.791 

-44 

1.7887 

41 

1X826 

04 

105X 

SX57S 

-46 

6X62 

-45 

6X375 

02 

946 

184X3 

-40 

166X7 

-40 

174 

-44 

94A 

131X35 

-3X 

132X9 

-41 

134X6 

-29 

SIX 

7X678 

-2_6 

7X941 

-2.7 

8X486 

-2.7 

748 

1X517 

OX 

1X503 

OX 

1X376 

1.1 

1043 

1X273 

ox 

1X204 

04 

1X23 

OX 

B74 

1.1874 

IX 

1.1953 

IX 

1X072 

-47 

- 

1X796 

-1 A 

1X828 

-1.4 

14038 

-IX 

82.7 

3X052 

-44 

3.407 

-43 

34145 

-43 

- 

- 

- 

- 

- 

- 

- 

949 

1X494 

-42 

1X601 

-43 

1X674 

-48 

847 

7.7257 

OX 

7.7204 

OX 

7.7414 

-OX 


3V43S 

-3X 

31X6 

-29 

to 

to 

— 

B8X16 

2X 

98X7 

2X 

95X65 

3.1 

152X 

2X815 

4X 

2X702 

3X 

2X437 

-2X 

- 

1XGS 

-47 

1X548 

-47 

1X601 

-45 

- 

3.7516 

-04 

3.7857 

-46 

8X743 

-46 


1X10* 

1.1 

1X065 

49 

1X017 

47 

- 

37148 

-6X 

3.7431 

-47 

3X196 

-3X 

- 

4X137 

-ax 

4.6726 

-41 

- 

- 

_ 

805.45 

-4X 

nvAafi 

-ax 

82746 

-3.1 

- 

246848 

-49 

247248 

-49 

- 

- 

- 


26.0200 26.0000 26.0626 -3X 26X1 -32 

• alw a®r ta w tlaaa dadal phoaa. Ronwd nan am 
laBU kt US camcyL JJ>. Uorgai namtad talaa A4 2t Bl 


[ (Sa ciry quctad la Iha martut 
m MODS 1800.100 


CROSS RATES AND DERIVATIVES 


EXCHAMQB CROSS MOMS 


PcriugaA 

S|paki 


22 

BFr 

DKr 

Ffi- 

DM 

K 

L 

H 

M (r 

' Ee. 

Pto 

SKr 

SR- 

£ 

CS 

• 

Y 

Eft) 

100 

19X6 

18X2 

4X69 

2X21 

4823 

5452 

21.18 

496X 

4046 

23X7 

4.117 

1X93 

4.197 

3X45 

3045 

PKr) 

52.47 

10 

4721 

2X49 

1.060 

2631 

2X61 

11.12 

2814 

21 OX 

12X3 

2.180 

1X46 

99TB 

1X98 

157.7 

(FR) 

6417 

11^7 

10 

9-naa 

1X16 

2902 

3X81 

12.78 

2948 

241X 

14X8 

2477 

1.199 

9MK 

1X32 

1848 

(DM) 

2488 

*BW 

3421 

1 

0418 

992.6 

1.122 

4X60 

1045 

8244 

4X14 

0X47 

0410 

0X84 

0X27 

61X5 

0Q 

4449 

4431 

IL97K 

2404 

1 

2387 

9 MB 

1448 

248X 

1942 

11X1 

2X37 

0986 

2X77 

1X07 

1447 

W 

2X74 

4395 

0X46 

4101 

0X42 

104 

ana 

0439 

10X3 

4306 

4485 

0X66 

4041 

0X87 

new? 

8X31 

i F6 

1434 

3485 

3X48 

0X91 

0X71 

884X 

i 

3X8S 

91X7 

7346 - 

4X79 

47E6 

4865 

0770 

mam 

55.12 

(NKr) 47X1 

8X96 

7X48 

2X94 

4964 

2277 

2X74 

10 

235X 

1841 

11X7 

1X44 

0X41 

' 1X81 

1437 

141 X 

m 2407 

3X25 

3X36 

0X75 

4400 

988X 

1X84 

4XS2 

104 

8040 

4.1M 

OIPB 

4400 

4842 

4811 

anno 

(Pta) 

2497 

4X88 

4.149 

1X13 

0X04. 

1204 

1X61 

5X89 

1244 

104 

6X00 

1X28 

a496 

1X48 

4780 

75X2 

(SKr) 

41X9 

7X82 

6X62 

2X35 

0X48 


2X84 

8X73 

2047 

187X 

10 

1X25 


1.758 

1X75 

12SX 

(Sfr) 

24X9 

4.628 

4.037 

1.180 

. 0491 

1171 

1X24 

5.145 

121X 

97X9 

5l7B8 

1 

0484 

1X19 

4740 

72X9 

« 

5418 

4563 

4340 

2.438 

1X14 

2420 

2.736 

1063 

2640 

201 X 

11X8 

2X68 

1 

2-108 

1X28 

1548 

P*9 

atra 

4X41 

3X60 

1.158 

0481 

1146 

1X99 

5X47 

1147 

9544 

5X88 

4981 

0478 

1 

a728 

71X0 

(S) 

32X4 

8X69 

6.458 

1X98 

0X84 

1584 

1.791 

6X67 

183X 

131 X 

7X40 

1X52 

0X54 

1X78 

1 

98.89 

• ■ m 

332X 

E3>2 . 

66X1 

1417 

4724 

19048 

1414 

7049 

1658 

1833 

7444 

1470 

6X31 

13X7 

iais 

1004 


39X6 

7X00 

6X41 

1X12 

4795 

1898 

2.146 

8X37 

1941 

157X 

9X96 

1X20 

0784 

ixse 

1.198 

118X 


BBS EUROPEAN CURRENCY UNBT RATES 


Balglian 

O armany 


&u cart 

rriae 

Rato 

against Ecu 

Change 
on day 

M+/-ftum 
can. rate 

219672 

2.15498 

+0X0453 

-1X0 

40X123 

39X467 

+40587 

-1X6 

1X4964 

1X2121 

+0.00398 

-1.48 

nHnanaa 

4798084 

-0X0*740 

-1X0 

6X3883 

8X6775 

-0X0088 

444 

743679 

7X3078 

4400321 

1X6 

192X54 

197X32 

+0X22 

2.17 

1542S0 

156X58 

+0X73 

2X0 

liBBe 

284X13 

290400 

+0X55 

479 

1793.19 

190527 

-7 

425 

4786749 

4788882 

-4004831 

025 


Y«n par I^OOs DaM rower. Ranai 


I S wa di Kronor par Iflc B a g lai Amc. Enudx Ua md I 


■ MMWKfim— DM 125X00 P« PM 

Opart Lataat Change W Uw Eat vcl Open int 
Sap 0X284 0X252 -40034 0X285 48260 87442 88X46 

Dae 0X272 0X254 -40038 46275 0X264 778 3,868 

Mar 48274 0X27* -40032 0X274 0X87* 322 1X54 


I RHUMB (IMM) SR- 126X00 per SFr 


K VI WJTUwn 3MM) Yen 12X par Yan 100 

Opan Lataat Change Hgh U*» Brt vd Open brL 
0138 1X144 440001 1X166 1X118 38X33 66X76 

0200 1X218 -0X014 1X218 1X190 840 5,108 

- 1X302 -40011 - - 1 787 

i— ■Miniuiiiiipwe 


4X9 

4X3 12 

4.12 

396 9 

2.15 -4 

1X2 -9 

042 -IS 

0X0 -10 


EoicanwlialaaaalbynaBtapewr CWnnW alB a Cwianclaa — ta«mcand n iian»raaBanaPt 
Par ea r an aobangm—ter EmapamiaohanBadmetaaa— afceuraacy. CA wg an ce *icw Oia 
nOk> b a tn e wn wo nra adKlha p ana g g a d> ®wn ea b ab naw Ib a aeon mmat and Bau caWal mar 
far a ewraney. aa ttae m l wa pawaar l pwcacaaga aavfattun of thi omncyl iwM rafa from a 
Ecu onufxilA 

(I7WBQ Sfartng nd Aata Lka aupandad from STM. ArOnmn eatodUad by tba HnwcW Ihna. 
■ WXI BfHmgUORIOMi £31X50 (canta per pouwfl 


47394 

■40045 

47456 

4739B 

32XB5 

40X12 

47415 

-40041 

47443. 

47410 

277 

1X71 


1X234 

+0X032 

1X27B 

1X224 

33,737 

32,152 

1X230 

+40044 

1X260 

1X230 

119 

903 


WORLD INTEREST RATES 


U i,,-, l Ui 


RRIM OTFOr DMIm poWa oil OOM 


Low 



posses 



Marhank 8toflng 


ft-ft 

ft - 5 

ft-ft 

Sh-Sb 

ft-6 

Staring CDs 

- 


ft-ft 

ft-ft 

58 -ft 


Treatury Sfaa 

- 

- 

4U-4B 

s-«n 

- 

• 

BwkOb 

- 

- 

5-4d 

ft-<li 

ft-ft 

- 

Local aulhorily daps. 

*y-4B 

4H-4B 

ft-4j| 

ft - 5 

ft-ft 

5U-5H 

Dteoount Market tfapa 



- 

- 

- 

- 

UK daortng baric base fanring a® 

ft per cant tan February a, 1904 




Up to 1 
month 

1-3 

month 

3-6 

mofflhs 

6-8 

months 

9-12 

month* 


Cwta ol Tte <fap. (£100X001 

Cbrti of Taa rfap. undv nOOXOO fa 1 
tea. ante nda of meant 4XB4(faa 


4 3* . 3% 3+1 

■ aabcl w n farce® 4ura 
nae Sag. Bpori Rranoa. Mfaa up dn June 33 


1M4. Awaad raw to pwtod Ad 23 18M » as 23 igg* Schamaa H A « &44pa IMnnoa naa lor 
parted Jin 1, 19W B June 30, M#*. SchnnaaW A V iiBTCpc. Rnanoa Hauae Baae RMa &tsc from 
Adyi.WM 

■ km month imun Riranaa jjm esooxoo pdnis oMoom 





EURO CURRENCY INTEREST RATES 


LiUv. i.TifiVi 


Short 7 rtaya Or« 

term nodca month 


Open 

Lataat 

Change 


■ Low 

Eat aol 

Opan Int 

94X2 

84X4 

+402 

94X5 

94X2 

107.140 

438X82 

94.14 

94.15 

+0X2 

84.17 

94.13 

176X83 

432X70 

93X7 

93.91 

+402 

92X2 

92X7 

96,152 

325J36B 


Sap 

- CALLS - 
■ Dae 

Mar 

Sep 

— PUTS - 
Dae 

Mar 

414 

0lO7 

406 

0X8 ■ 

488 

1X6 

403 

003 

004 

(10P 

467 

1.49 

0 

401 

402 

CX44 

1.10 

1.71 



. fan, can 2335 pm 4203 Ftwdoua dayv open to, (fa® Z290B4 Ada 200017 


Belgian Banc 
Oanfah Mm 
D-*toK 
Dutcb Quarter 
Ranh Rene 
Partugjna Eac. 
Spankh PaaaU 
Staftig 
MnRaic 
Can. Odtar 
US Dotar 
Man Uv 
Van 

Mm SSne 


«A-*H 5A 
*%-■> Of* 

4H-4S 4B 
A%-l\ 4% 
6A-3A 
12J* - 11% 12 - 
7*2-73, 7& 

a 

ft -ft » 

ft-4>i *& 

B-7>2 ft 

ZH-2U ft 
3%-ft ft 

i»s® to iheUatt 


4U ft-ft 

ft 5H-6ft 
4H 

ft 4%-4V 
5& ft-ft 

ift 12b -ta 

a ft-ft 
5b-5A 
3b ft-* 

5A ft-ft 

g *>a-ft 
8A-8A 
m, ft -2 i* 
ft 4^-4ft 
afar and Van. odn* 


ft-ft ft-ft 
ft - 8 ft-ft 
4a-48 *«-■« 
4%-ft 5-ft 
5A-6& SB-SA 
1ft -12 12% -1ft 

7%-7\ BA-7H 

ft-ft 

ft - ft 4A-4A 

ft-8 «S-*» 

f -4H ft-ft 

-ft ft-ft 
-8A ft-2> 
-ft ft-ft 

md day*’ nortoa. 


■ ft -6 

ft-ft 

ft - 5 

ft-ft 

6-5% 
1ft - 11% 
ft-ft 

ft-ft 
t*i - rh 

ft-ft 


i iiotnwraowHWV«^^P** w,t)10lI ° lfc,a ^i^ 

Opan San price Change «flh tew ^ 

MX7 8335 +005 9L37 94X8 14X18 541M 

SS 2S »«e *«1 0.196 3SX8B 

04X3 94.08 4403 84X8 MX3 4^ 

Siffi nX4 +402 9488 9SX1 1.K7 23X« 

: — 

Opw ««(*» Otang. Ito .!+» SA- 


■ ue*m«MWrrfa®I.H»IUM®i(BX4)>1mpari00M 

Sep 96X8 96X0 *406 98X0 96X8 2X19 

Oao 94X3 94.74 4403 84.74 94J3 706 

Mar 9447 - - ' <7 

49 Opw fafanai flga. on far enrioua day 

■ lWWMAimornoim(L^DM1rgpoltrt»0*TOOM 

SMes CALLS — s r— PUTS — — 

Price Aug Sep Dot Dae Aug Sep Oa 

g ffgg 412 413 414 0.18 0X1 0X4 413 

yrx 001 0X2 40* 410 415 416 . 028 

gggg 0 0X2 . 0X2 0X4 0X8 041 0 X1 

tto- vnL am. can am waa zzaa. rr ax fa a a dar e apn to. cna aa»ia pwb iaez78 
MWHP«WWHMIICOroil9|UH^8F71mpoeinrt 

StlKs GAILS PUTS — ~ 

Price Sap * Dae Mar Sep Dae 

. o,19 419 427 405 . 423 

K7S 407 0X9 417 ■ 418 0X8 

um nm 404 0.10 439 0X8 


FOREXIAFAX $ £ Dm ¥ 

A # w * ccwra o 804 " 1 * FORetyurnw 

DAJLY FOREIGN EXCHANGE COMMENTARIES, 
CHARTS, FORECAS TS AND R ECOMMENDATIONS 
Tol- +44 81 948 8316 Fax * ■ 44 31 040 oxo® 


BASE LENDING RATES 


CALLS 

Sap * Dae 
419 019 

407 0X8 

0X2 0X4 


BH .w «M_ Me D 4 ftwfaua da f* epan hu CUfa 1206 Pm 1373 


Adam & Comparer — S25 

ABadTIuatSMc 5X5 

525 

•HariyAnMachar .5X5 

Barfaof Baroda — _ 525 

■ Qanca BSno Vtanga— 525 

BafftefCypria 525 

Banhofkaiarrd 5X5 

Bank of Mb 525 

Baric of Scoiand -5X5 

BmAya&v* 5X5 

MBhrilOdEast — 525 
•BmwiSriptoy&CoUdA26 
CL Baric Nedartand ... 52$ 

CttankNA -.XX5 

CfadeedetoBeric _52S 

TteCtKpaniw Bank. 5XS 

Cam & Co 5X5 

CtoaiMnwfa — — 525 
Cyprus PonJar Barit _523 


DwrcanL—ite 6X5 

B®terBakLWM_ 6XS 
RiancWaQaa Baric. B 

•RDtMrt Hamfeu 5 CD - SXS 
Gkcbaak 6X5 

■GlAiHHMriion 6X6 

H®bBar*AS2itti.52fi 

•HambosBank 525 

HedfaHa&QriibwBk.525 

MS into 525 

C. Horae & Co 5X5 

HawaprgAS(ianghri.a26 
Jllan Hoc^a Boric .... 5X5 
■Leopold Joseph A Sore 5X5 

UoydaBank 5X5 

Megvai Baric Ud- 528 

Mtifand Baric 5X5 

■MntoBariMg 6 

HriW na a ii rafa r 6X5 

•RMBrnnais 62 


• ftodaagha Ouwartea 

CBpotritoiUiAMfaw 
bigar«nWn 
BbMMgMBtAon. 0 
ftoyriBkolScodand- 6X5 
■Srriti ft WbmnSeca . 5X5 

T88 6X5 

■Untod Bk cf KlmoK 5X5 
Untylhid Barit Pfa_ 5X5 

WtolanTbar 5X5 

Mtoeway Uklfar... 5X5 
VW faM w P rib 6X5 


• Mambera of London 
iRvgstmant Bating 
AMocUon 





nn B mn 

































FINANCIAL TIMES WEEKEND J U L Y 23/J U L Y 24 1 994 


^ rn bek ™„, havQ *>«*» token wttti Consort 
S^TKSRJ^^ Off^ u«t and .hcxid not be 

relate to those securities not Included In the FT Share Info/mation 


LONDON STOCK EXCHANGE: Dealinas 


ABad-LyoftS PLC A0fl (1:1) - S&35 PBJyflJ) 
ABed-Lyons PLC 5%% Cum Prftt -57 
ROJyW) 


A«wR«0R3 PtC H4,K Deb Stk 2009 - 

Cl 23 V (15*94) 


Cl 23 V (15*94 

wt -gymmo+BumiMm-mh 

sett^ the T 24 1x5455 to 5 pm on Thursday and «M^owPLcnMUrBUiS»c 33 «- 

the Stack bwhange Tafisman system, they arc not In ortJer of ®*56 

but ,„ „mc aw highc* "53S2SS&S5SK. 


Eure Otariey &CA She fflS [Depository 
RscMpa}- 120 5 

Euro Disney &CA SI* FRS (ft) - F»11 A 57 
SI -0381 -B5 55 Z3 

Euraonwl PIXVEurttbmel SA Units 
pawn Insetted) - FR24.1 % 55 .4 .49 
%%.506.55.66.58.84.eS.fl7.7%.8 
55 

Eurotaeiel PLC/Eunjtonral SAFndr 


tfwsB securitise in which no business was raowded in Tuesday's 
DmMJ48t the latest recorded business in the four previous days is given 
with the relevant date. 


^ re 9 utet8d ^ the Inlerratfon^ Stock Exchange 
ot me United Kingdom and the Republic of Ireland Ltd. 

t Bargains at special prices. $ Bargains dona Ihe previous day. 

Brittah CimrtB ni. Kyushu Beclric Powar Co me 8% NM 1997 

orrosn bunas, etc & e vro - eioq% % 


Treuey 134|W set 200CVD3 - n25jj 12911 

POJyBd) 

BrchKWr 10%» Stt 2005 - CtlsjJ 11S& 


Corporation and County 
Stocks 


Bhnfngham Carp 3% Stt I947far after) - £3c 
(10*94 

Ormodiam Cap 8% pM2J I93«pr aftep - 
£33(18*04) 

BriMotfCtty of) 11%* Ftod Stt 2008 - £119% 

nan®*! 

Bristol Carp Dob Stk (3%%) - £37% 

Dudhy Met iupu t tai Borough Oouncfi7% Ln 
SBc 2019 (Hog Int CwtaXP/PJ - £82% 
(18Jy94) 

Wkieton Crap iuk Had Stk 3017 - ClZlb 
Mancrwttv Carp 1891 3% FtorJ Stt IMIfer 
after) - £31 (20*94) 

Okttam Mat Borough Caux* 11JB% Red 
Stk 2010 - £116(15*34) 


UK Public Boards 


Commonwealth-Government 


South Ausbalan 3% Cone ins 3tk Iflififer 
after) - £31 (18*94) 


Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

Abbey Matronal Strafing Capital PLC 8 %% 

Bubort Gb7Bcb2004(Br£Vara)-£se%4> 

Abbey National Storing Capital PLG10%% 
Subort Old Bets 2023 (Br C Varf - CltWfl 
Afcteey Nsnonta 7 notary Sene PLC 6 * 2 % 
Odd Bda 2003 (BrS Vai}- $81 .7 
Abbay NaSonai Treesuy Sens PLC 7%% 
Gtd NO 1903(BrCVjr)-£88>B % V V 
Abb* National Traesuy Sana PLC 8 % GW 
Bda 2003 (Br E VteJ - £90% 4% 

Acar Incorpor ate d 4% Bda 2001 (Bt* 1 0000 ) - 
5243*3 244 

Afftcuuuta Mortgage Coro PLC 11 * 3 % Nts 
1B94 [Brtt 000,1 000081 MOW) - 9100*2 
.609563 nS-MMI 

AngOmWtaraPLC 12 % Bds safa- 
ri oooosioooooj - tt 2 S% 

Atria Ftenot us \o%% Cm Cap 
Bds20Q5(Br £50008100000 - £ 100 % 
(20*94) 

BOC Group PLC 8 %H Bda 20Q4(Bit vras) - 
C05V (20*94) 

BMqa Bank PLC 85% Ms 2004(Br£Va+- 
Ot*) - £84*2 (18*94) 

Barclays Bank PLC 12%% Senior Siterad 
Baa 1997(BrtVar) - £1124, (15*94) 

Btelrgs PLC 9%% Psrp Sitoart Nta (BrCVart- 
«*)- £86 74)75 (15*94) 

Bradford & Btoglay BuMhg SncMyCriknd 
H«RteNts 2003(Rofl MUttCIOOO] - £921, 
(20*94) 

Bradford ASm^oy Bulring SaraefyColaed 
FBg R» Nta 2003 (Br £ Vte) - ESG% 

Brtatol a West Bidding Society 10%% 

auonf Bds 2ooo(Br£ioooosioooaq - 

E101V* 

Brianma Bu 8 dbig Soctaty lObH Bda 2000 

iRr oimnrtt.irwvvn _ chiw no mai 


(Br £100004100000) - C107^ (20jy94) 
Brttah Airways PLC BVH Nta 
V9QT(B<£19QQ&100Q0) - Cl OS's 
BnUsh Gas inO Hnaocu BV 8%% GtdMts 
1999(BrS1 000,1000081 00000) - $104*2 
105*2 

ainsh Gas PLC 7%* Ma 1997 (Br £ Vm) - 
£100% (19*04) 

Brtttth Gas PLC 10%M Bda 2001 (Br 
£1000.100008100000) - £109 
Brttah Qua PLC B*g% Beta 2003 (&£ W) - 
£90*4(16*94) 

aittah Laid Co PLC &S75H Bda 2023 (Br E 
Van - £92 (19*94) 

8MM Tda c ona iH iac a tl u iw PLC Zero Cpn 
Bda ZCOCHBrEMWO&iaOQO) - £B2 % 

(18*94) 

BrtWi Idfloommurtcanans PLC 7*e% Bds 
2003 (Br £ Vai) ■ £913175 (19*94) 

Burmah Caanol Capri%tanMyt Ld 9*2% Cm 
Cv Bds 2006 (Rag ClOOtfl - £146% 0 
Burmah Caabri Captttparaay) Ld 9*2% Cm 
Cap Bda 2006(Br£S000850000} - £147% 
(20*04) 

CRH Ctatttt id 5%% Cm Cap Bds 
3»5(BrS5000) - 5119% P0*94) 

Cafata 8 Wketasa bit Rnanca BV 10%K Qtd 
Bda 2002 (Br £100008100000) - £106V$ 
CommtMiri Union PU3 10%% Sri Bda 2002 
(BrEVarf- E107H 

DaDy Mai > Gensrri Trust PLC 8\% Exch 
Bda 2005 (Br£1 00085000) - £167 
DenmarhOOngdem aQ 0V% Nts 1998 (Br E 

v*1 - eesv A 

Dopta Branca HV. 7*i» Ok) Bda 2003 (Br E 
Start - £87% 

ECC Group PLC 6>2% Cm Bda 
20CQ(Bri:1000&10000) - £100 [15*94) 
Eastern Soclrictty PLC 0%H Bda 2Q04(Bi£ 
Vtes) - £96 

eactncrta da Fima 10*2% Gfcf Bds 2009 
(BrCI 000081000001 - £111 3*s (19*94) 

Bf Enterprise Finance PLC 8%% Gtd Each 
Bds 2006 (Rag £5000) - £99% (18*94) 

Bf Btaerprtae Rnanca PLC 84,% Gtd Each 
Bds 2008(8^500081 00000) - (ms7S#i 
%*9V* 

Eaport-lmport Bank ot Japan 9*2% Gtd Bds 
2C00(arS3000) - Sit 0^1 (19*94) 
Fb*aid(FtepuMc Of) I0*s% Bds 
ane(Br£i(n08i«na - % (i9*wi 

FStewp®putaic ot) 10%% Bds 1986 - 

Forts PLC 10%% Bds 1996 (Bf£1OOO&5OO0) 

- £104*4 (18*94) 

FOrts PLC 9*1% Bds 2003 (Br £ tfraj - ES8*f 
*•(15*94) 

GES8 PLC 0-35% Gtd Sac Bda 2018 
(BrfMOOn - £934. {J 

Gutenatn PLC 7>a% Nts 1987 (Br £ vart - 
£98% 

Gutansao PLC 10%% Nts 1907 (Br £1000 & 
10000) - £106% (20*94) 

GiSnneaa Ftaancs BV 12% Otn Nta 
lseetBrEiocm 1000m - £109% 

HSBC Holrings PLC Q%* SUMrd Bds 2018 
(Bi £ Var) - £101 *e^ !»♦ 

Haifa* Bidding Society 6*2% Bds 2004 
®maoa.iooiM,iotwoai - cs*** 

HjMteJt Busang Soctaty 7%% Nta 1998 (Br £ 
VM-EB8*s 

Hama* Buedng Soctaty 11% Subonl bos 
2tJf4(Br£1 00008100000) - £113(1 4d 
(19*94) 

Hsttax BuMng Society CoSatsd FHg Rte Ms 
2003 (Br E Vttfl - £95 
Hansen PLC 9*2% Cnv Submd 2006 (Br 

CVari- CIU* 

Hanson PLC 10%% Bds 1897 (Br (Vos) - 
£105% 

Hatson Trust PLC 10% Bds 2008 St£500Q 
-£104(19*9fl 

vechsan Capital Ld 7% Cnv Cao Beta 2004 
Iftag) - 129*2 (18*94) 

Kflckscn Cwttal Ld 7% Cnv Cm Beta 2004 
(BrCIOOQSlOOOB - £130 (15*94 
HydrtvOuobac 6-50% Dew SomK 
1998IReg £ Von) - £934* 
imperial Chemical IndtaMes PLC 9%H Bds 
ZflOStBrttOOO&IOOOO) - £104% (19*94) 
bnpenul Chemical Industries PLC 10% Has 
2BQ3(Bi£1 000810000) - £104*8 
Imperial Oiemical Inau ab taa PLC 11%% Bds 
l995(a£SOOa) - £101 (19*94) 
bitemetkinal Bank tor Rsc 8 Dev 9%K Bds 
S007 (B(£S000) - £104% *2 (19*94) 
bddnasonal Bar* lor Rsc 8 Dsv 10%% Ms 
l994(Br£l 000810000) - £100% (10*04) 
In te r n atio na l Bank lor Rsc & Dm 11%% Nta 
!995(BfCl00C» - £102% (19*94) 
ttaMfeputtc Of) 10*7% Bds 2014 
(BrtlOOOO&SOOOO) . £111 A (19*94) 

Japan DuuetapnMnt Bonk 6%% Gtd Bds 
1999 (Br S Var) - 996-9 (15*94) 

Japan Oewtoprow Bank 7% GW Bds SOW 
(BrEvaf)-C94 1 i<20Jy94) 

Konsal Becaic Power Co Inc 7%% Nts 199S 
(Br £ Var) - £97% 


Kyushu Bearic ftww Co me 9% Nts 1897 
(Br £ Va) - £100% *2 

Ladbrekv Group HR^riegeneylLd 9% Cnv 
Cap Bds 2005 (BrESOOOai 00000) - £87 
(1BJyS4) 

Lard Securffiec PLC 9%% Cm Bda 2004 
(BrOnOO&SOOOO) - £111% 2 (15*94) 

Leeds ftormaient Buadtag Society 7%% Nts 
1097(BrfVa) - £99% (10Jy94) 

Leeds Permanent Butriin Society 11*2% Nts 
1996 (Br ESOOO&1 00000) - £106% pOJy&h 
L«eds Pcnnanent BuWng Soctaty Ccdmd 
Htg «ta Nts 2003. (Br C Vta) - £94 (T9Jy941 
Ltayda Bank PLC 7*i% SUbard Bds 
axWBriVurfoua) - S»a%* 

Uoyda Bank PLC 9*2% SUbard Bds 2009(Eb£ 


£109*2 

Hras Landcn Praparm PLC 10*2% 1st 
Mtfl Dab Stk 94B9 - £100%® 

AMs H.C 5JK Cnv Cum Non-Wg RkI PW 
El - 74gOJySfl 

AnwriMfi Brands teShsol Own SK 33.125 

-833*2 

AitMritech Corp Ste of Gam 9tk Si - S39 
P9*84) 

An^tan Water PLC 6 *b% Mex-Untari LnStk 
9»6{&2576%) ■ £132% 

Anglo-Eastern Wantebon s PLC Warrants to 
sub far Ord - 23 (i9Jy9fl 
Angk>€3atem Ptantattans PLC 12*2% Una 
Ln Stk 95/99- £00 (15Jy94) 

Angioraal Ld N Ort ROlOOOI - £1B% (16*84) 
Armar Tnat PLC 10*2% Uns Ln Stk 91/96 - 


WlaflEPLC 8 1E$A WiBOSub LartHta) - 
£10*2 (1BJy94) 


£10*2 (19Jy94) 

Euratumel nc/EuptwHl SA Fndr Wts 
(Stowam taacribed) - Fft130flB*&4) 
Ex-tandta PLC Warrants to Sub far 5hs - 24 
Encaflbur Group PLC 115% Cum Pt#£1 - 
1004(18*94) 

enriocaflon OoPLCOnlStkfiB- 299 
(18*94) 

FI Group PLC 7.7% Cnv CUm Rad Pit 9503 
£1 ■ 110 (20Jy»q 
Falcon Hoidbigs PLC CM 5p - 118 
Rrct Iberian Find btc She of Com 96c 30J)1- 


Hrat hwSteT&Btftto SocWy 11%% Prim 
M Bearing Sha £10000 - £103*2 <20*94 
Brst Ntttaritt France Carp PLC 7% Cm 
Cum Red PH £1 - 129 


AaWMdgs 

Drib Slk 2011 - £11 


gs PLC 106716% 1st Mtg 
£103% (16*94) 

Foods PLC 7*2% Uns Ln 


tomPLCADRtt1)-88Vfr 
rtuna PLC 5%H Uns Ln 3ft 200«H -CD 
(18*9^ 

ilZMdbn PLC 6*g% Cun Prf IRSM - 10*2 


■ SOp - 45*24 
1 ADR (5rt) - S&% 


Vara) - fia*94j 
Uoyda Bonk PLC 1b%% Srixad Bda 
19980b£1O(]OO) - £105% (15*84) 

Ltaytta Bank PLC Subairi Htg Rta Ntafirfi 
Vii:) - £100,19 (19*9^ 

London Boctrtdty PIC 8% Bda 2003 (Br £ 
Va() - £B5*2 tiajyB4) 

Loniho Ftoam nC 8% Qtd Cnv Bda 
2004(Bf£Vtes) - £87 (15Jy94) 

McOonaftfa Corporation Zao Cpn Ntao W 

96 (Br C Var) - £87% C19J*«( 

Maria 8 Spanoar Rnanca PLC 7%% Gfd Nts 


Agricultural Mortgage Corp PLC S*z% Deb 
Slk S3/BS ■ £98% (20*94) 

Oydeport Ld 4% tod S6c - £42 (iSJyOtq 
Meeupoi ta i warn Metmpo ita n water 3% a 
Stk 63/2003 - £09% (15*94) 


1996 (Br E Var) - £97Af 
•taridpaity Ftoanoa Ld9%% Gtd Nts 1997 
(&■{*■)- £104,1 P0*94) 

KaUraal Grid Co PLC 7%H Bds 1898 (Br E 
Vte) - «B93 (20*94) 

NaflortaJ Wesbrinsfar Bank PLC 11%% Und- 
SubNta £1000(Cnv to PrflReg . £107% 6% 
Nettonwrie BuOdtog Society 135% Subord 
Nts 2000 (Br E1DOOO - £119% (Z0Jy94) 
Nippon Tetegmph and Tetapharw Corp6%% 
Nta 1996 (BrYI 000000) . Y105JS 105.7 
(20*94) 

Nippon Telegraph trad Telephone Corp8*2% 
Nts 1097 (Br SCI 00081 00001 - SC10O3 
100% (15*94) 

Northern Rock Buidlng Society 10%% 
Subord Bda 2019 (Br £ Vte) - £103% % 
P0*94) 

Osdea Gas Co Ld 8.126% Beta £003 (Br £ 
Var) - E84JJ75 (20*94) 

Pacific Boctrta WMSCritaa Co Ld 3%% Beta 
2001 (Bril 0000) - *118 
Pearson PLC 10%% Bda 
2tX»(Bf£TO0IH1OOI)q) - £108* POJyQQ 
Pearson Btering Finance PLC 10%% Gtd 
Bda 2002 - £107(34 
PowwGen PLC B%% Bds 2003 (Br 
£10000810000(9 - £99%$ 

Radbnd Capita PLC 7%% Cnv Bda 
K»2(Br£1 000810000) - £104 (20*94) 
Robert Fkvrtng inti Branco Id B%% Pap 
Subord Gtd Nts (Br £ Vw) - £88% 

Royal Bank of Scotland PLC B%% Bds 
2004(Br£Vatt - £94% % (18*94) 

Royal Bank ot Scotland PLC &%% Undated 
SriMid Bds (Br £ Vo) - £95% (T8Jy94) 
Royal Bank ot ScoOraid PLC 9%% Subrad 
Beta 201 5(Bt£1 0000810000009 - £99% 
(18*94) 

Royal Insurance Mdgs PLC 9%% Sttorad 
Bds 2003 (Br £ Var) - £98% 9% 

Sincere Narigatian Corporation 3.75% Btta 
2003 (Br *100008100000) - *108 100*2 
194 197 (1&*94) 

SmhMdlne Baacham Caplttt PLC 8%% Gtd 
NB 1996 (Br £ Ma) - £99% % COJylM) 
S*ndm(KIngdomoq8%% Bda 
1996(91*50001 - £102% (19*94) 

Tarmac Ftomoa {Jersey) Ld 9%% Cnv Cap 
Bda 2006 (Reg £1009) - £104% 

Tramac Finance (Jersey) Ld 9*2% Cnv Cap 
Bda 2006(Br £500085000q - £101% 
(15Jy94) 

Tate 8 M Rnanca PLC 6% Old Bda 


1 909(Bm 000081 OOOOCB - £fl6%4> 

Tate 8 Lyta tot Hn PLC 5%% OKI Bds 2001 
(pr £5000) - CHS (iSJy’M) 

TataSLyie mtFta PLC7Tata*Lyte PLC 5%% 
TautftoGdBds 2001W W/WtaTSLPLC - 
£84(15*94) 

Tosco PLC 8%% Bda20Q3(BrtVaniXFyPdl - 
£98%(15*94) 

Tosco Capital Ld 0% Cm Cap Bda 2005(Rag 
Cl) - £114% % 6 

Tosco Capita Ld 9% Cm Cap Bda 
2DD5(a£SOOOaiOOOq - £113% (15Jy94) 
Thames Wrier PLC 9%% CmSubcrdSds 
2006(BrtS000850000) - £120% (20Jy94) 
Thanes Wrier Utantas Finance PLC 10%% 
QU Bds 2001 - £107(2 
31 htemrifonl BV 7%% OU Bds 2003 (ft £ 
Vbr)-EB2(15Jy94) 

Tokyo Bectric Power Co Inc 7%% Nta 1986 
(Br E Vai) ' £07% 

Treasury Corporation of Victoria 8%% Old 
Bds 2003 (Br £ Vai) - £98,1 (19*94) 
TurkeyCRepriiBc d) B% Bda 2003 (Br £ Vte) - 
£73% (20Jy94) 

U-Mtog Marine Tranmrat Crapon rt tanl%% 
Bds 200l(Reg to Milt *1000) - *103 
G0Jy94) 

Uiflewr NV 7^5% Bds 2004(BiS Vraa) - 
*97% 97% 

Unteera PLC 7%% Nla 1998 (Br £ Vte) - 
£97% 

United, Kingdom 7%% Bds 2002(Br*Vaj) - 
*96% p5Jy84) 

Mctartan PtScADva Fto Agency 9%% GU 
Bds l999(Br£vara) - £104,1 
WorbisrtfS-GJ Gnaup PIXJ 9% Petp Subord 
Nta (RapNteBrq - £87% (19*94) 

Wooterich BuhMg Soctaty 11% Nta 
1996(BfC1 000810000) - £107% (Z0Jy94) 
Wocfnlch BriWng Soda* 11%% Subord 
Ms 2001 - £110% (16*94) 

Deutsche Barit AG L20000m Rte Mb 27 
3^5 -557JJ15 (15*94) 

Quaemfeaid Treasury Carp *A30m 5% Ms 
15712/96 - M93252f 
SBAB SCIOm Rig Rte Nta 22/12/95 - £97 
(1BJ794) 

Stria Bank of New South Wries Ld 9% Bds 
2002 (Br SA Vai) - SA96% 96% (19Jy94) 
Swadraipflngdran of) GBOQm 7%% Nta 3712/ 
97- £98% 

tetedtaVNngdom ol)£250rn 7% Instruments 


23712/89 - £95% 6% 7 |1SJy84) 
MderiKtagdom of) E350m 7%% Bds 28/7/ 


S waderiKtogdom of) essom 

2000 - £95% (20*94) 


Sterling Issues by Overseas 
Borrowers 


Aslan Dwefapment Sank 10%* Ln Stk 
SOOKReg) - £112% n 3*941 
Bonk of Greece 10%% Ln Stk 20l(MRag) - 
£99% (18*94) 

European trareatment Bank. 9% Ln Stk 2001 
(Fletf -Clffi%% 3 (20*949 
European Investment Bank 9%% Ln Slk 
2009 - £107, V £ 

European Investment Bank 10%% Ln SUi 
2WM(Fta0 - £111.825 % (15*94) 

European hvorimm Bra* 10%% Ln Slk 
2004(Br ES0001 - Cl Mil 
Buraperai Investment Bar* 11% Ln Stk 
»J02<Refl) - £112% 925 
tce(nrid(HepiibllC ol} 14%% Ln Slk 2018 - 
CI45P0Jy94) 

totomaaonoi Bonk tor Roe 8 Dev 9*j% Ln 
Stk 2010(Reg) - £108 GSUyS*) 

Wemnftorol Bra* tor Rec 8 Dm 115% Ln 
Stk 2003 - £117(3 

New zeatand 1 1 %9e Stk 2008(Ftera - Cl 19% 

(15*94) 

PDrtugritRop ri) 9% Ln Slk MltXReg) - 

noo% 

Ponugdfftep at) 9% Ln Slk 2Ol0(Brt - CIOO, 1 ! 
(20Jy94) 

Prowica eta Ouettac 12%% Ln Stk 2020 - 
£129% (19*94) 


Listed Companfes(exduding 

Investment Trusts) 


AAH PLC 4.2* Cun Prf £1 - 59 (19*94) 
ASH COMBI FtnanoriJarMvHjd Cnv 


ASH Capital FtnancefJarsaylLd 9%% Cnv 
Cap Bds 2006 (Reg Urtts lOOp) - £82 
(20Jy94| 

AXA Equity 8 Low Ira Funds Ld Ptg Red Prf 
ipfSterlng Deposit Sfn) - S71.7B5 (15*94) 

Aberdeen Thai PLC A Wta to Sub for Old - 
52 (1BJy94) 

Aetna Motayrion Growth Fitnd(Cayman)Ld 
Ordttun -*|1% (19Jy94) 

Atoart Ftahsr Group PLC ADR (10:1) - UL95 
(l9Jy94) 

Abwnrieni (Wgs PLC a A‘(RsLV)CM 10p - 
21 (20*94) 

AJexort Group PLC 62Sp (Net) Cnv Cum Red 
PfflOp - 50 2 


FT-SE ACTUARIES INDICES 


The FT-SE 100, FT-SE Mid 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 Ftepubfic of Ireland Limited 
& The International Stock Exchange of tire United Kingdom and Republic 
of Ireland Limited 1994. Al rights resorved 

The FT-SE Actuaries All-Share Index is calculated by The Financial 
Times Urnttad In constriction with the institute of Actuaries and the 
Faculty of Actuates. O The Financial Times Limited 1994. All rights 
reserved 

The FT-SE 100, FT-SE MW 25Q and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-SE Actuaries Aft-Share 
index are members of the FT-SE Actuaries Share Intfices series which 
are calculated In accordance wtth a standard set of ground rules 
established by The Financial Times Limited and London Stock Exchange 
in conjunction with the Institute of Actuaries and the Faculty of Actuates. 

"FT-SE* and 'Footsie* are Joint trade marks and service marks of the 
London Stock Exchange and The Financial Times Limited. 


Attwoods (Finance) NV 8%p GW Red Cnv Prf 
5f» - 91 2 (18*94) 

Automated Securtt#ldg3) PLC 6% Cm Clim 
Red Prf Cl -61 2(20*94) 

BAT Industries PLC ADR (£1) • *13% 
(15*94) 

BET PLC ADR (4:1) - 58% 

BM Group PLC AjJp PteQ Cnv Cln, Rad Prt 
20p-5®% 

BOC Group PLC ADR (1:11-511.38 (19*84) 
BOC Grew PLC 4S5% Cum Pif El - 70 
(19*94) 

BOC &txjp PLC 12%% Uns Ln Stk 2012717 
- £126 (20*94) 

BTP PLC 7£p(Na) Cm Cum Red Prf lOp - 
197 

BTR RjC ADR (4:1) - *232 .6 
Bangkok towstmonta Ld Pig Rad FW *0.01 - 
*130(29*94] 

Bank of WandfGovemer a Co ot) Untta NCP 
Slk Sre A £1 6 £9 Uquktattan - £12 
(19*84) 

Bank of briondfOovamor 8 Co art UHta NCP 
Slk SraA MtMMS UquktaUon - Cl 38925 
(l8Jy94) 

Bamar Homes Group FLC Ortl lOp - 12B 
Barclays PLC ADR (4.1) - S33J» 4 ^8685 % 
Barclays Bank PLC 12% Uns Cap Ln Slk 
2010 - £118% (19*94) 

Baictays Bail PLC 16 % Uns Cap Ln Stk 
2002/07 - £137 (18*94) 

Barton Group PLC 7 JSp (Neb Cm Rad Prf 
2SP-9235 

Banfan Group PLC3JS% Cun Prt Cl -43 
Barton Group PLC 1 f£Sp Cum Rad Prf 
2005 lOp • 108 (20*94) 

Borings PLC 8% Cion 2nd Pif Cl - 87% 
Barings PLC 9% % Non-Cum Prf Cl - 118% 
Banoto EXptoralton Ld Ont ROOT - 41 
(t«J»W) 

Bass PLC ADR (2ri) - Cl 1.115* 

Ban PLC 10%% Deb Sn 2016 - £118 
<19*341 

Basa PLC 4%% Uns Ln Stk 92/97 - £88 
(19*84) 

Base PLC 7%% Una Ln S8( B2A77 - £96 
(20*84 

Baas tavrtmart te PLC 7%% Urg Ln Slk 82/ 
87 - £B5 6% (18*84) 

Batew PLC EL5% Cum Rad Prf 2014 £1 - 
111 % (15*94 


Braguan d-y AS *B* Non Vtg Sha MCL5 - 
NK16934 % JOB 70 70 
armtojyuni **thf*aa BuBdtog Soe 8%% 
Perm mt Bearing She £1000 - £87 % % 

8 % 

BUekwood Hodge PLC 8% Cran Rad Prf £1 
-29* 

Blockbuster En tert ain 1 a mt Carp 9n Con 

SOI *0.10 -£16.7 *26% 

Bkta Orcta induaktee PLC ADR (! :1) - *4 J2 
Boota Co PLC ADR (SI) - SlTaS (16*84 
BMdtart 8 Btotfoy Bu8dng Socta*M%% 
Pram Int Bearing Shs £10000- £114% % 5 
Bredtort A Ongtey Biddtog Soatty13% 

Pram tot Bearing So £10000 - £125% 6 
Brent irasmadonai PLC 9% Cum Red Prf Cl 
-B6%(20Jy84 

Brent Watoar Group PLC Wts to Sub tor Ort 


BierS WbOar (boito nC Uar Rte 2nd Cm 
Rad Prf 200W2007 « - 8% (15*84 
Brent MtaBw Grtup PLC 8i% 3rt Non-Cum 
cm Rad 2007/1 0£l -Z% 

Britton PLC 10%% D«b Stk B1/86 - £100% 

(20*94 

Bridon PLC 5%% Una Ln Sk 2002/07 - £78 
ft6*94 


Bristol a West BuBdng Soctaty 13%% Penn 
W Bearing Shs £1000 - Cl26% % 7 

Britannia BuKtaig Soctaty 13% Pram tot 
Baratog Shs £1000- £123% %4% 

BrWah Atoeeys PLC ADR (ICtl) - £42.7 * 

66A9%6%7 

tettsh-American Tobecoo Co Ld 6% Bid 
Cum Prf Stk Cl -83(18*94 

British Petrdaum Co PLC 8% Cun 1st Prt ei 
-78(20*84) 

Briush PWroteum Co PLC B% Cum 2nd Prt 
£1-88(19*94 

BrilWi Stott PLC ADR (Mfcl) - *24% % J83 
AB818 

Brttah Steel PLC 11%% Deb Slk 2016 - 
£1203 (1SJy94) 

Brttah Sb^or PLC 10%% Rad Dab S6i 2013 

BrtXtcn Estate PLCSlSOH lei Mfc Deb Slk 
2026 - £1Q?%4 > 

BulgkHAF i & Oo RjC Ord She 5p - 52 

BUtnerfHPJNdgs PLC B%% 2nd Cun Prt 
£1-104% 

BufnrarfHJ 5 JHWga PLC 9% % Cum Prf £1 - 

110 

Bran! PLC 7% Cm Urn Ln Slk 86/97 - £103 
(20*84 

Bramah Castro! PLC 7%% Cum Red TO £1 - 
70 

Bumdraw fawestams PLC 15% Uns Ln SU< 
2007712 - £116 

Bunon Group PLC 6% Cm UneLn Sfc 1996/ 
2001 -£845 

Butte MNng PLC 10% (Nal) Cm Cun Red 


Prf 1984 10p * 2% pciyJK) 

CALA PLC 4% Cum Rad Prf £l - S3 (1BJy94) 
CoUtomta Energy Co Inc She ol Com Slk 
SOJJ675 - 51GB35 (18Jy94) 

Canbridga waur Co Com Old Sta - £6800 

00*94) 

Canadrai Overe Peck InduMr Ld Com Npv - 

550 08*94 

Capital a Ooudtae PLC *%% 1st Mig Dab 
Stk 93ffl8 - £81 (19*841 
Capital a Counttae plc 9%% let Mtg Deb 
Sdt 2027 - E106A (19*94 
CapM Strategy Frau Ld Ptg Red Prf 
SLOT (Japan Fund Sty - Y7 183 06*84 
Caritota Gram PLC 438% FteQ Rad Cm Af 
1908 £1 - SO % (19*94 
Cartton Communications PLC ADR (2:1) - 
*28% 

Carton Cammunicadans PLC 7%% Cm 
Subord Bds 2007(Heg £5000) - £138 
(19*94 

Catrapatar Inc Sra of Cam Stk *1 - *108% 
(20JyW) 

Cathay fcitemaUon a l Hdgs PLC 10%% Cun 
Prt Cl -1QB 

Charmood Attance HMgs Ld 7%% Una Ln 
Stk 60p - 38 (1BJy94 

Chetenham a Gtoucaater Buk: Sac 11%% 
Pram Int Baratog She £50000 - £117% 
(19jy»4 

Oiepnow Raoeoauee PLC Ord 25p - £39 

(20*94) 

C*y Site Estates PLC SJS% Cm Cun Ftod 
Fto d - 05 

Ctava ha id Place HokRngs PLC 3%% bid Deb 

Slk - £38% (19*34) 

Cteveiaraf Ptoca HoUtngs PLC 4%% tod Dob 
sat - £43 (15*34) 

Coastal Caporatton She of Com Slk *033 V 
3 • *32% 

Coras VlyeOa PLC 4J% Cun Prf Cl - 67 
Comm e retal Union PLC 3J% Cum Red Prf 
£1 - 65 (19*94 

Cnmm u ct a l Union PLC 8%% Cun tod Prf 
£1 - 106% 

Commraoal Urdori PLC 8%% Cran tod Prf 
£1 -106%% 7 

Go-OpOTttra Ba* PLC 9i5% Non-Com tod 
WEI -1124 

Cooper pea***) PLC BJSp (NeO Cm Red 
Cum Pig Prf 10p - 92 
Courtnrts FLC 5% Cum let Prf £1 - SO 
115*94) 

Coutuws PLC 5%% Uns Ln Stk M/96 - 

£96% 

Couteukta PLC 7%« Uns Ln 8tk 200CV0S - 
£91 (18*94 

Cautateds Ctathtog Brands Ld 7%% Cran 
Prf Stott- 75 (15Jy&4 
Coventry Buknng Sodray 12%% Perm Inter- 
•s BestoQ She £1000 - ttlSl 2 
Crwla InMmrtanal PLC BUM Cum Prf £1 - 

63(10*84) 

Da* Moil A General Trust PLC Old SOp - 
£13J 13.65(0*94 

Oatgafy FLC 4*5% Cran m £1 - 70 110*84) 
DeLaRue PLC 245% Cum Pit Slk Cl - 39 

P0*94 

Debertwms PLC 7%% Uns Ln Stk 2002/D7 - 
E8S% (19*94 

DHte PLC 10%% Deb Stk 95/99 - £101% 2 
(S0*94 

Dttehrast PLC Old lOp - SO (19jy94 
Dominion Energy PLC Ora 5p - 11 
Dover Carp Cam Stk ST ■ SS9% (19JyB4 
BS Grout PLC 5% CUn Prf Stott - 4fi 
£20*94 

Ecctedastoi tnsuwca CMce PLC10% Red 
2nd Cran Prt £1 <114 (I5jy94 
B Oro MMng8£xplaration Co PLC Old lOp - 
57559090 

B*W0eJPo»S.CoPLG T%% tndUnaLn 

Stk - £78(19*94 

Emeu PLC 6J2Sp(NMl Dm Cran Red Prf 5p 
-53% 

Brtirat Go Id 8% Cum Pit S» £1 - 78 
Broplre Stores Group PLC 8%% Deb Sto 947 
00 - £100%-(15*94 

Englbh China days PLC ADR (3:1) - *17% 
Ertcssortf-MJfTtaefo na kfleboUgaflSer 
BfftofjSKIO - SK403 3 .13 % % 4 4 St % 
* J3 S 5 .704545 23 .3 0 % 7 % 12% 
Eseos end SurfoBc Water PLC A Od tt - £19 


flso Ames Crarancy Fund Ld Pig Rad Pit 
SQjBitSwtm Franc) - SF3Q.183 (19*94 
Fofcea Group PLC Ord 5p -40 

Fate PLC 0.1% Ura Ln Stk 85^000 - £99% 
100% (20*94 

Friandj^Hateta PLC 7% Cm Cum Ftod Prf El 

GKN PLC AOR (iri) - sasa C0Jy84 

GN Greet Made Ld Shs DK1O0 - 
DKSB6.4(fiS4 

G.T. CMe &dw«i Fund Ld Old $0JJ1 - $27 
28% (20*94 

General Aecktant PLC 7% % Cum tod Prf £1 
- 100 % 

Genual Aosktant PLC 8%% Cum tod Prf tt 
-107% 8 

Gram! Acc Ftreauis Aa sc Crap PLC7%% 
Uhs Ln Stk 92/87 - £98% (20*84 
Grawral BaebU Co PLC ADR (lrf) - *4% 
Gfabs a Dam* PLC OdlOp - 80 05*94 
Glaxo Group Ld 6%% Ltos Ln Slk 8S/S5 SOp 
-49 (18*94 

Own Croup Ld 7%% Una Ln Stk BV06 SOp 

-48%na*84 

Great LMweaef Stores PLC ADR (lrf) - 38.1 
(16*94 

Greet IMverata Stores PLC 5%% Red Ike 
Ln Stk - £50 (19*04 
Greet Unharsa) Stares PLC B%% Red Uns 
Ln Stk - £04 (18*94 

Oeondb Gtouj PLC 8% Cunt Prf £1 - 104 
(IBJyMJ 

GreenaDs Group PLC B%% tod Urn Ln SK - 
£98 (19Jy94 

Qrerarrta Grora> PLC 7% Cm Subrad Beta 
2003 (Reg) - £107% % (20*94 
Greoraie Group PLC 7% Cm Subrad Bda 
2003 (Br) - CUB (15*94 
Greancore Group PLC 9.5% Cnv ltos Ln Stt 
1995 -£1404) 

Gitotnete PLC ADR (5:1) - 1226098 
Qufrawsa F9gM Gkibta SOteogy Fd P13 Ftod 
Prf S0J)1(6taritoB Money Frau* - £028346 
(15*94 

Gunrwea FXght InU Ace Fund Ld Pig Ftod m 
S0C1 (US* Money Frf) - S38S38 (15Jy94 
HSBC Mdga PLC Old SFflO (Horn Kraig 
Rag) - SH86 .37015 33243 .83985 .86801 
.0787 QJXB874 .1185*7 .121246 .130296 
.130332 .312418 36587 .378332 .464121 
J604S4B -819602 .753664 .860635 -069703 
00.121041 1.12479 

HSBC Ffldgs F’LC 1 1.68% Bubord Bds 2002 
(Rag) - £105 10 1 

HSBC HUg3 PLC 1188% Subord Bds 2002 
(Br C- r) - El 12% 

Htaton Butoftog Soctaty 8%% Perm Int Bear- 
ing She £50000 - £90% (10*94 
HflOtax Bidding Society 12% F%m Int Bear- 
ing Bha £1 (Ftog 150000) ■ £119% 

Httkto HakBnga PLC Ort 6p - 63 (IBJy94 
Hal EngtaMrtogtMdgelPlC SA% Cum Prf 
tt-65&>*94 

Hrara nsre un Puc Ord 25p - 345 7% 8% 52 
Hrariys a Hansons PLC Ord 5p - 247 50 1 
(20*94 

Hasted Ino She of Com Sto 8X50 - *30 
(15*54 

Hratoies Inc Ois of Com Slk of NPV - 
*108% 

Mdraon Intametanel PLC 8%% Uns Ln Slk 
68/84-352^85 (16*94 
FBsdawn Hkfaft PLC AOR(4c1) - *10 £0*94) 
Httonos Protection Ooup Inc 9n of Cam Stk 
S0L25-26 

IS Mmsfayrai Reid NV Onl RXL01 - *16% 
i8%(20Jy94 

ktafaid Groiro PLC Giv Cun Ftod Prf 20p - 
119 

Industrial Conte* SsratcoE Op PLCOrd lOp - 
141 

Ind Stock Excnange of UKARep of IrLd 7%% 
Mtg Deb 8k flOrtS - £09% £0*94 
Irish Lite PLC Old IiCOlIO - K2JJ1 Z04 p 189 
% 200 

Aedtoe Matheson Hdgs Ld Ord S025 Ofang 
Kong Ftogbtra) - SHHL747838 -747963 
1^45827 % .753995 4) £006286 
Ja*u SOntagta Hdgs Ld Ort *005 [Hong 
Kong Register) - *H2aa7S547 .407106 
567574 -5H1364 -681460 .688009 
Jersey Boctedty Co Ld ■ A" Ord tt - E2S 5 
(20*94 

Johneon Group Ctaeneis PLC 7^p (Net) Cm 
Cran Ftod Prt lOp - 138 (20*84 
JohnsonAtatthey PLC 6% Cm Cum Pif £1 - 
870 (19*04) 

Jones^aroudfftofaa) PLC 10% Cum Prl tt - 

120(15*94 

Ktogstey a Forester Group PLC 346% Cum 
Prftt -40l19Jy94 

Korea-Eranpe Fund Ld Shs(IDR to Br) SaiO 
(Cpn 7) -13950 4025 
Kvoomer AS. Ftow A Shs NK12J0 - 
NK314JTI 

Lacfarttai Group PLC ADR (Trf) - *257 
Lamont Hdite PLC 6% Cun Prf 50p - 30 
(19*94 

Land Socratess PLC B% lit Mtg Dab Slk 99/ 
2001 - £102% (20*94) 

Lend SecuMee PLC 6%% UiaLnSft 82/97 
- £96 £0*94) 

Laboare RaHnum bttias Ld Od ROOM - BO 
(15*«4 


Leeds a Hal beck Bu8dtog Soctaty 13%% 
Pram tot Bearing Shs £1000 - £125% 8% 
7% 

Leeds Pramenenc BuUtag Soctaty 13%% 
Pram Int Baatoig CS0000 - El 34 (l9Jy94) 

Le»rfa(jo hn )Partn ra »top PLC 5% Cun Pit Stk 
tt -S3 (18*94) 

Lex Service PLC 6%% Cum Prt tt - 84 
(19*94 

Lombrad North Central PLC 5% Clen Jtod Prf 
£1-90(15*84 

Lombrad Norte Central PLC 6% Cum 1st Prt 
£1 -66 (70*94) 

London totemadra ra l Group PLC ADR prl) - 
3S%&8 

London Securtttas PLC Ckd Ip - 3% 

Ujratio PLC ADR (lrf) - $2$ 

Lookers PLC 8% Cm Cum Fled Prf tt - 130 
(20*44 

LowfWm) a Co PLC B.75% Cum Cm Rad Prf 
tt - 12S % 8 


MAI HX» 55pfNeQ Cum Cm Prf 5p - 104 5 
5%>B% %5S8% 

M6PC PLC 356% Cum Prf Stk £1 - 48 
(20*94 

MEPCPLC 12% let MtgDsb Stk 2017- 
£127^(19*94) 

MEPC PLC B% Uns Ln Stk 200045 - £95^2 
(18Jy84 

MoAtptoetAHre^ PIC 8% Cum Prftt -104 
(10*94 

McCarthy a Stone PLC 8.75% Cran Fled F>rt 
2003 £1 -88(20*94 

McCrad* a Siraie PLC 7% Cm Une Ln Stt 
83AM- £70 

Mdnemey Properttae PLC 'A" Od lrfXH.10 - 
£056 p 5% 

Mandarin Ortantu totemsUonta Ld Old *005 
(Hong Kong Reg) - $H1 0240419 (19*94) 

Maiders PLC 5% Cum Prt tt - 54 (19*94) 

Maria a Spencer PLC ADR tt:1] - *39% 

Martay FUC 11%% Deb Slk 2009 - £114% 

Medcv a PLC ADR (4rf) - *8% 

Mttchani Ratal Group PLC 8%% Cm Uns 


Id Stk 09/04 - £BS (20*B4 

Mercury totrar u UM nd tov Trust Ld Pta Rod 
Prt ip (Reserve Furd) - £40^4363 
Mersey Doaks a Heibara Co S%% Red Dab 
Sto 98/88 - £91% (18Jy94) 

Mersey Docks a Harbour Co 3%% tod Deb 
Slk - £37 (10*94) 

Md Kant Water PLC 9%% Rad Deb Stk 97/ 

99 ■ £104 (T5Jy94) 

MkFGoutrnm Wbtra PLC 5% Pen Dab Stti - 
ai% (i8*«) 

Mrtand Bra* PLC 14% Subrad Uns Ln Sto 
2002/D7- C12S p5JyM) 

Mtal Corpo rat ion Com Shs of NPV -C57 
NEC Finance PLC 13%% Deb Sto 2*16 - 
£145ii (18*94) 

NFC PLC 7%% Cm Bda 2OO70 Rbq) - £96% 

% 

NUC Group PLC 7.7Sp (Net) Cum Red cm 
Prt Wp - 128% (iBJyW) 

Nabanal Pmvra PLC ADR (10rf) - S8S53 
NatoroJ Westmto stor Bonk PLC 12%% 
SUroid Ltos Ln Stk 2004 - El 21 (20*94 
NewcMta BuMng S«w* 12%% Pram 

Imeraat Besrtng Sns £1000 - tt 18% 5 
(28*94 

New* Group Ld 5% Cun prf £1 -52% 
OBJyW) 

News totarrollanoi PLC 48% (Fm* 7%) 1st 
Cum Prftt -03(18*94) 

New FLC 7%'A' Cun M tt - 70(10*84 
North Etat Wtter PLC SL25% Red Dtb Slk 
2012 - £06 (20Jy84 

Nratn Houstog Aesocaton Ld Zero Cpn Ln 

Stk 2018 ■ 887% 812% (1SJMM) 

Nrate of Englami Btttdtog SocMy 12%% 
Pram im Seanng tsnooq) - ttl»% »% 
Norte Sramy Water Ld 9%% Red Dab Stk 
M/96 - £100% (15*94 
Ontario a Quebec Rraiwy Co 5% Pram Deb 
Stkflrt Qjd by Cjp4 - £S3 <2Q*M) 

P % O Property Hradtogs Ld 8% Uns Ln Sta 
97149 - £90 tlflJySM) 

Pacific Gas & Boctric Co She of Com Stk *5 
-$24% 

Paridand Gfroup PLC Old 25j» - 180 
Peel Hdgs PLC let Mtg Deb Slk 201 1 
-C101 (20*64) 


FW HUBS PLC £25% (Ne4 Cm Oran Non- 
Wg Prftt - 100 

FM South East 15 8%% Um Ui Sto 87/87 - 
£90(15*94) 

Partitas Foods PLC 9p(NeQ Cun Cm Rad Prt 
10p - 84 (20Jy94 

PwroOna SA Old Shs NPV (Br to Drawn 14 
a 10) -BF1 020(1 23$ 6$ 

P6X Group PLC 35% Cum Prftt -25 
(15*04 

Ptantsbrook Group PLC 6.79% Cm Frf * 1 / 
2001 10p-83 (18*84 
Ftonds Group PLC 6% Cum M £1 -65 
(19*94 

Pntgtatenrust Ptabnums Ld Old AUKS - 459 

08*94 

PtMWGen F*C ADR (rftt) - S78.46 (13*94 
Premier Hetfte Group AC Od ip - 1% 
Press* HaUtogs PLC 105% Cum Prf tt - 
110(15*04 

Qurato Group Inc e.7Sp6te» CmCurfledSW 
of PM Stk *a 10 - ISO (15*94 
FLSAFSdgs PLC S% Cun Pit tt -85 
(20*94 

RPH Id 9% Uns LnSto 89/2004 -eiQQ% 
(19*84 

RT2 Crap uta tton PLC 3325% 'A* CUn Fkf 
£1-51(20*84 

Recta Bedrorecs PLC ADR (£11 - *7% 
09*94 

Ranh OganisaOon t\G ADR (£1) - *1256 % 
Rackte a Ctamrat PUC 5% Cun Rif tt - 54 
Reed Memgtlomf PLC 35% (Firty 5%) Cun 
Prt tt - 55 (19*94 

Reed totamatferud PLC 355% (Firty 5%%) 
CUn Rod Prf £1 - 59 (18jy94 
RepubBc Goklttokta toe Shs of NPV ■ £15 


TSB OBShora ton Fund Id Ptg Rad Fto Ipffar 
Eastern Cteu) - 25658 758 (18*94 
TBB Oflahrae In* Fund id Pig Rad Pit ipfUK 
BMty Class) - 3095580 (15*94 
Taipei Fund UnSs pDR to te) - $80600 80500 
(10*84) 

Ta» a Lyle PIC ADR (4:1) - C1E5111 
09*84 

Tesco PLC ADR (1:1) - *3-78 
Tosco PLC 4% Uns Deep Dtec Ln Stk 2008 - 
£63%pojy04 

ThateM totemtafanel Fuel Ld Ptg'ShaSLOl 
(TOR'S to Br) - $20% (20*04 
THORN EMI PLC ADR (lrf) - *17.15 (15*04 
ThMtatosfDmM) PLC 5% lot Cun Prf ttO- 
475 

Thydsen AG Cifar Dm1O03sd by Westmtoster 


Bjnfa - DM8 CZOJyM 
Tow* Group PLC 4%% Rrap Deb S8c - ES2 
(15*94) 

Town Contra Socrates FLC 9K Cm Una Ln 
Stk 96/2000 - £320 (20*84 
Trafalgar House PLC 10%% Uns Ln Stk 
2001/06 - £98 (18*84 
TnmtatanOc HoUngs PLC A Cm Prf 50p - 
£3.7 (20*84 

TransattanOc Holdhgs PLC 8 6% Cm Prftt 
Transport Oeiektamm Groite PLC 4.T% 

Cum Prftt -65(19*84 
Transport Oevetapmrad Group PLC 8%% 

Ltos Ln Slk 93/88 - £85 
Unlgeto PLC ADR (in) - 3SJ2 (20*94 
Urtgrte PLC 8%% UnaUt Ste 91/88 - £96 
(?0*O4 

Untever PLC ADR (4rf) - £62.7 
Untart toumrtonal Co PLC 6% Cun Prf Ste 
tt - 47 (19*94 

Ltalon totemeilond Co PLC 7% Cum Prf Stk 
El -SO* 

Unied Rantadons Atlea Ld Ord R050 - 
£0.10(18*94 

Vbkie a Income Trust pic Wtarsds 69/94 to 
aub far Old -50 

Vau* Sdup PLC a%% A Cun Prf tt - 65 
C0*94 

Vtckraa PLC 5% Cum(Tax Ftoe To 30p)Prf 
Stk £1 - 70 [19*94 

Vodafone Grx 9 PLC ADR(10ri) - *29% 85% 
% 8% 7% % 5 8 % 

Wagon Industrial Hdgs R£ 7J25p D«4 Cnv 
Ptg Pit T0*> - 148% (18*94 
WafcraChonas) PLC Old 6p - 23 
Watmw^s^a^rt PLC 8%% Cum Rad Prf 
2006 tt -100(20*94 
WaUcome PLC ADR (in) - *9% 57489 % 
Wtonbtay PLC 6p(Na])cm Cum Red Prf 1999 
tt -50(20*94 

WMtteead PLC 6% 3rd Cum Prf Stk tt -Bd 
(18*94) 

WNtbreed PLC 7% 3rd Cun Prf Stk tt - 75 
(18*94 

WNtbraad PLC 6%% tod Uns Ln Ste - 080 
(l&**4 

Whkbread FLC 7%% Una Ln Stk 95/B6 - 
£94% 

wmBiroad plc 7%% Una Ln stk 9W2000 - 
£84% (18*94 

vmtereed PLC l0%% Uns Ln Bik 200VD5 - 
tt04 7%(20Jyp4) 

VWteme FUge PLC 1D%% Cun Prt tt - 120 
£0*94 

WWs Canaan Group PLC ADR Sell - *1053 
10505 

WBwaterarand Mgta Ld Old R055 - 27 
(18Jy64 

Xerae Crap Com Stt *1 - *101% {20*94 
Yrak Wtasrworics PLC Ord 10p - 265 
(IBJyM 

Vratahke-Tyna Tees TV Fidga PLC Wts to 
rate far OTO - 102 

Zambia ConsoUaMd Copper Mtoes ld*B" 

Ord KID -210 5 


Me* Crauorabon PLC 455% (Fir* B%%) 
Cun Prftt -63(1 8Jy94 

torafl Corporedon PLC 4525% (Frrty 5%%) 

Cum 2nd Prftt -55(15*94 
total Corporation PIC 4J5% (FuSy 8%%) 
Cum 3iO Prftt -83(20*94 


Rotork PLC 9%% Cum W tt - 107 (13*94) 
Ftoyol Bank of Canada FMEastaPlae Fold Ptg 

RedPrttSOJll -826515(15*04 


RedPriTSOOl -826515(15*94 
Royal Bank of Corada Gr. -rSOg Fd LsJPte 
Red Prf Ip - 51-44 (13*94) 


Royal Bank of Canada hL Cun. Fd Ptg Red 
PrtUSS ShatSOjOl - G4.19262B 05*94) 
Ftoyta tnaurence HokJtogs PLC 7%% Cm 
Subrad Bds 2007 (Br £ Varf - £104% 


Rugby Group PLC 9% Ltos Ln Stk 93/86 - 
£89 00*94 


(10*94 

•p am Of Com Stk of NPV - S13 

i a seatchi Co plc adr an - $*% 

«jryU) HJD 8% Ind Une Ln Slk - £83 


SMtanrUnC 8% tod UneUi 
Serial PLC 5%% Cm Cun Ftod I 


Serial PLC S%% Cm Cun Ftod Prf 2006/11 

£1-80(20*94 

Schroder Japrawse Wterara Fund Ld DR (to 
Denom 100 Sha a 10000 Sta) - *1-454) 
ScoBtah Hydro-Bectrio PLC Ord 50p - 386 7 
989 .18 %52 7011%2233%445 
Scottsh & Newcaada PIC 7% Cm Cum Prf 
tt -236 (20*04) 

Scottish Amr PLC Ond SOp - 380 90 %. 1 2 
%334515%6B%%7B8%9B 
Scottish Rower PLC ADR (10:1] - *584 
h5*94 

Seculcor Group PLC 456% Cun Ptg Prf tt 
-£180 (18*9*) 

Shefi TraruportATradlngCo PLC Ord Shs (Br) 
25p (Cpn 192) • 723 8 
&fMd Group RC Oro 5p - 9 
SNtad Group PLC 554% (No* Cm Cran Red 
Prftt -18 

Shoprite Finance (UK) PLC 7575p(Nei) Cran 
Red Prf Shs 2009 - 72 (19*94 
Sklnr Group PLC 7%% ltos Ln Stt 2003/08 
- £83 COJyM) 

Signet Qotp PLC ADR (3rl) - SI .41 
Stman Engbieartng PLC 7.75% Cum Red Prf 
92/07 £1-91 

SkroM (Wfcnfl PLC 5505% Cm Cum Red 
Prftt -54 8 9% 


HTR Jepuneae SmsBra Cu'a Trust PLCfttt 
250-112 2 3%% 4 

h i wa it raa Capital Trust PLC 5%% Cum Prf 

Stt- £54% 

toveatora Capital Trust PLC 7%% Dob Stt 
82/87 -£96(10*64 

Lazard Solocl tovnstmont Trust Ld Ptg Red 
Pit 81p Gtobel Acttre Fund - £13% 
(18*94) 

Lantnl Setoct m ra mm a n l That Ld Pig Ftod 
ftf 81p UK. Acttw Frael - tt 355 
(18*94 

Lazad 8etaa Imetameni mrat Ld Pig Red 
Prf (Lip UK. Liquid Assets Fund - ttO 
(15*94 

Lazrad Satact kweanent Ttaist Ld Pig Rea 
Prf (Lip U K. index Fund - £14.46 14A8 
(15*94 

Lxrard Setaa mvestmant TTO* Ld Ptg Red 
Prf (Lip ILS- tndax Fund - £1755 1757 
(15*94 

Lzzairf Select imesteant Tiust Ld Ptg Red 
Prf 81p -kuen train Fund - 893 5 
(IS*®*) 

lasted Select kMtebnaM Trust U Pig Bad 
Prf 81 p Europe Index Fvdd - £1893 1556 
(15*94) 

London & St LaMence tovesment PLCOrd 
3p - 147 a 0to*94 

Ma ua iGranMLaOnAmetCo'e T&t PLCWts to 
aub forOTO - 42 3 0 

Now Tirogniunun Trustn983) R.C Zero Cpn 
Dab Stt 1998 - £70 

Northern toduta tmprov Treat PLC Old tt - 
483(20Jy94 

Paribo French Investment Trust PLCSraa *A‘ 
Wteranta to sub tor Ord - 28% 9 31 2 
(15*94 

Pirfbaa French tovrebnent Trust PLCSraa 
’B' Wteranta to site tor Old - 25% 

(20*94 

Schrader Ktew Fund PLC Ord SQJD1 (Bri - 

*14% (18*»4) 

Bcodtah Amerieai tovetament Co PLCEqul- 
ttas todm Une Lit Stk 2004 - 153 
ScoHtah Eastern tov That PLC 4%% Cum 
Prf Stt - £48% (19*94 
Sacwtues Dust of Scotland PLC 4%% Cun 
Prf SW - £46 (18JyS4 
Stttea Wgh-Ytekfng Sro«r Go's TatWta to 
Bub tor Old - 73 (iBJyB4 
Sphere tovetamant Trust PLC Ratased War- 
rants to aub far Old - 6% (15Jy94 
ihrogmortcn Trust PLC 12 5/16% Deb Stt 
2010 - £124 5 (19*94) 

Wlgmore Property lms a toie nt Tta PLCWts to 
SUb far Old - 39 

Wltan tovestmant Co PLC B% Dab Stt 96/99 
- £96 (20Jy94 


USM Appendix 


BLP ante PLC Old SOp - 150 BO 
Dakota Group PLC Oro K05S - £0.17 
FBD Hddtogs PLC Ort ir£0L50 - Cl 58 
Gtobs Mew PLC Ord 2Sp - 410 23 
Otoata Southern Group PIC 0.75? Gum Olv 
Red Prf 5p- 233(15*94) 

Mkaena 8 Scouth Ftaeources PLC Ord IDp - 
3% (19*94 

Radek Group PLC On! H3L05 - IED5 
(15*84 

Hckolku Croup PLC 7.75% Gnv Cum Red 
Prftt - 50(20*94 

United Enragy Pic Wb to sub tor OTO - 3 


Rule 4.2(a) 


Investment Trusts 


septan BuMtog Sotaety 12%% Perm tot 
Bearing She £1000 - £119% % 20% \ 
Smtft New Court PLC 12% Subord Une Ln 
Stt 2001 - £103 5 (20*04) 

Smrth (WJL) Group PLC 5%% Ftod Una Ln 
Stt - ES2 (19*84 

SmthWlne Beecham PLC ADR (5n) - 830% 
SmlteWtoe Beecriran PLCffiniteMtoe ADR 
(5rf) - *275 8% 

SnuflQJetlarranjGrorai PLC 8% Cum Pit 
k£1 - IQL55 (20*94 
South S til f radta tte Water WC 9%%Ftod 
Deb Stt 09/2000 - £1*1 (19*94 
Bb« Franbrae Htdga PLC 11% Cum Prf £1 - 
103 

Standtad Chartered PLC 12%% Subrad Urn 
Lri Stk 2002/07 -£115% 

Stanley todutartaa PLC 5%% Cran Prf tt - 
50(15*94 

Sutcm^Speekman PLC B%% Red Cum Prf 
tt -90(20*94 

Swhe(johnjascraLd65%Cun Prf tt - 
76% (20*94 

9ymonda En^naratog PLC Ord 5p - 33 
T & N PLC 1t%% Mtg Dab Stk B5/2000 - 
£103(20*94 

TSB GR Fund Ld Pig Rad Prf IpfCtass'A' 
Pig Red Prf) - 10251 (20*94 
T5S Group PLC 10%% Slterad Ln Stt 2006 
- £109% 

TSB Offteore hw Fteid Ld Ptg Hod Prf 
IpfEraoperai C»a4 - 19354 (I5jy04 


Abtnist New Deem hv Trust PLC C Shs 50p 
-238 9 42 

BtaSa GfltoTO Shto Nfapon RC Wterants to 
aub iw Ord - 132 (19*94 
Baring Tribute Investment Trust PLQ9%% 
Deb Stk 2012 - tt 00 

Barorantead bwestraenta Treat PLC WU to 
aite tor OTO - 28 9 (20Jy94 
British Moots Trust PLC 4%% Prt StMCunfl - 
£494) 

British A«eta Trest PLC EqUttae tndn ULS 
2005 lOp - 152 3 po*<M) 

Mtah Empire Sac 8 General Treat 10%% 
Deb Stt 2011 - £109% 

Broadgan Investment Treat PLC Wta to Sub 
tor Ord - 50 

Capita Gearing Trust PLC Old 2Sp - 465 
Dartae tov o ut mwa Treat PLC Wta to 3ub- 
eertoefar 1 1nc 8 1 Cep -83 
Ednbw^i towstment Treat RC 355% Cun 
P«S» - ES4 (iajy94 
Efflnbraji to rejun ait Treat PLC 3%% Deb 
Stt 1998 - £80 (18Jy94 
Ftosbray Smtara CO'S Tnta PLC Zriro Ov W 
25p-l82% 

Foratai % Ooiratta Eunftuei PLC S%% Cm 
Urie In Stk 1996 - £3604' 

Gartmora Mtah Inc 8 Orth Tta PLCZero 0M- 
dendMlop-108%4 

Gartmora Stared Eqta* Trust PLC Qeraed 
Ort Inc lOp - 101 1 3 % 

Qatmrae Vtaua tomtamenta PiC 1254% 

Dob Stk 1090 - £101% (18*94) 


Aden Car PLC Ord Sp - £054 (I8JM4 
AmeJgsmsted Meta Crap PLC OTO tt - 
Cl 53(20*94 

Aim Sveta Brauiray Cold Old tt -£3% 
(15*94 

Amos l/Bage Ld CM lOp - £053 H8*»4 
Ascot Hugs PLC Var Rate Cm Cum Ftod Prf 
10p - £0-08125$ 

Aston iflta Faofbal Club PLC Ord £5(1 vote) 
-CTO 

Brancote Haidtags PLC Old Sp - £0.44 
(20JyS4 

CCL Qroud PIC OTO tt - £3% (10*94 
Caverturii PLC Old Ip - £0.1 (19*94 
Chanml Mtoda Cram (TV) Ld OTO 5p - £048 
p(J*94) 

Cottetar Tntat PIC Ord 2Sp - £054 (15*94 
Coopar Cttatai Oeup PLC Ord SOp - S5 70 
(T8Jy94 

Coratey Gerdana PLC OTO 25p - £0536 
(20*94) 

Den Vtatoy Ught Rtavray Ld OTO tt - £25 
(18*04 

l>i Qrucfcy (Abtaham) Co Lid Ord 2Gp - 
£153(30*94 

Eastern Coratees Newapapara 155% Cun 
2nd Prftt -£lA8(16Jy94 
Mot (BJ PLC 75% (Net) Gw Cun Red Prf 
tt-tt5(1BJy94 

Ftncast Broadcast Corporation PLC Ord 5p - 
£0.46 0.455 1X46 (20*94 
Fra m e m n tatem a t iu i M l Group RC Oro Ip - 
£0.45 (20Jy94) 

Gender HaKfaiga PLC Ord Ip - £0.08 
Onrnplan TeiaiWon PLC CTO top - £3% - 
(IBJylM) 

Qreenstar HMeta RC Ord top - £02 
(20*94 

Guernsey Gas Ugtt Co Ld Ord iCfa - £0.78 
077(16*94 

Qiiton Goup Ld Ort 1(*> - £158 


Hamfcnn Fund ManagensRTJJ Japwi Fond - 
455*79(15*94 »J/J f 

HanpeNraCranpraty PLCOrd 15p- E022 .JJ/JI 
Hartwme TwramLd Ort tt -tt% (19*94) ')1*^ 

I E 3 Group PLC Orel lOp - £3% 328 
(18*94 

INVE8CO MM Intemaltanat Ld Japan tocomo 
4 Growth - £2.077 \. 

Juta Group PLC Ort Ip - £003 (15*94) 

Netawoft BansonPng FVnd Man KB <3* Flaw 
- £14.11 (18*94 

ibalmroil BensonQng Fund Men m EgiltV 
GMh Inc - E2L733 

Utbyrtatfi Group PLC CM lOp - £0% 

PO*04 

LancasMe E ntaptbws RJC Ort 5p - tt % 

152155 

Lwrte Group PLC Ord tt ■ £2S%rj» 

La fficha/b Stores Ld Ort tt - CJU (19*94 
M8G(Guatr wi y) lM ik) Goto Fund Accum 
Units -£60805(15*94 
Manchester Car Footbai Ctob PLC Ort tt - 
£15 00*94 

Mam K Ouereora RC Ort Sp - £057 
Martae 8 Mareratato Secufflee PLC Ord 
lr£020-E2%(20Jy94 
Maxim hweetmenta A Ort £1 «C04 (20*94 
Mercuy Fund Montale of Mon) Mercury Int 
Bend Retd - £05678 

Morton Ctose Hetaterere PLC Old IDp - £D% 

(20*84 

Mtafeoffi Ld CM 10P - £013 014 015 
(15*94 

MUSaeR Ld Wta 10 rate to CM - SOW 
(13*94 

tutorial Parictag Corp Ld Ord tOp - CSV 

Pan Andean Resources PLC Ord Ip- CO OS — 

(19*94 

Parpetuta(Jeiaey) Offshore Astai SmaSor 1 " 

Maketa - £1593254) r*' . ,, 

PerpatuadJereey) Ofbhera Emerging Coto - ' 

£4.172096 (19*94 

Rarpetutapersay) Offshore Far Exuam Qrwth 
Fd • £3.4022554) 

PrapetoaHJerem) Offshore Japan Growth Fd 
-*1507148$ 

Rvpenrattjersey) OHS/wre UK Cbowte • 
£1.733307(19*94 
Rangras Fbotort Cktb PLC CM top- 
£a»4 

Saxon Hoeik Grom RC Old tt - £2% 25 
Setota InduMrlea PLC New Ort 7%p (5p Pd) 

- 0004 (16*94) 

Sbephero Nun Ld *A* Ort tt • SB.B5 
(16*94 

Southern Newepapara PLC Ord £1 - £4.15* 

Sutton Harbora HWgs Ld Ord 25p - £3.7* 
TtmaBB^DratW)& Co PLC Old25p - £2.63 
(19*94 

Uteghur RC Ord 5p - £004 (18*94 
Ttackar Network PLC Ort £1 - C13 
UAPT-tatoMi PLC OTO 25p - £35 355 
Vatertnary Drtg Co PLC Ord £1 > £3.73 3% 

(18*94 

Wart eag Aaota Management Jersey Mareray 
tail GcM a Gerard Fd - SI. 61 69 (19*94) 

Waddertxan Securities PLC Ort Sp - EOIS 
(15*tW) 

Weddrabum Securities PLC Ms to sub tor 
Ord - £050 (18*94 
Yhaatkn Ld *A' NocvV OTO 2Sp - £15% 

Weet B romwteri Albion Fooibtal Club Oro tt 

- esno (15*84 

Winchester Mute Media PLCOrd Sp - £063 
(20*94 


fin 


RULE 535 (4) (a) 
Bargains marked In securities 
where principal market is outside 
tho UK and RapubHc of Inland. 
Quotatio n h— not bean granted L 
Lxmdon and deaflngs are not 
recorded In the Official List 


Atstato Exploration AS1.74«21.7) 

Bank East Asia HS3253 52563215(21. 7) 
Botaa Cascade Carp *24%(2i.7) 

8uUt Sembawang £11%4(1 *l7} 

Centaur MWng a Expl AJ055748(2l.7) 
Cay Demfopmana 356.415(15.7) 
CorisrotHy PaycMatnc Ji2%(21.7) 

Cons ErttoraUon ASao9578(19.7) 

Forest Labe £27.5(15.7) 

Hunter Raeources AS(L483(21.7) 

Mtaayan Credt 8*3.18335(19.7) 

Murray 8 Roberts Hdgs F289.55<X21.7) 
Norte nindars Mines 380(20.7) 

OD Search 46^0.7) 

Storer Commrattoatfan 5*3725(15.7) 
Wtahsla Mkeng Co ASQ.1S1(I8.7) 


Br PamOathu of fhe Stock Ex&imtgm Ceim 


R WAN PA CRISIS 


xr.-rsc.Tj-.f^f 


M Shut, 


We’re in the right 
place to help. 


Up to 15,000 men, women and children are fleeing from Rwanda into Zaire every 
hour. Children who have seen their parents savagely killed reach us too terrified to speak. 
Many have been walking for over two weeks. 


More than a million people depend on the Red Cross to airlift in vital food, medicines 
and shelter. A donation from you could mean the difference between life and death 
Please send as much as you can now. 




British Red Cross 


Or you cart send a cheque or postal 
order with the coupon below. 


I enclose a cheque/ postal order (payable lo BriHsti Red Cron) (or 


Mr/Mn/Mti«/Mri 


□ £250* □ £50 □ £30 □ £20 Other £. 


Or please detail my Vcu/M.itaercapd /Amoc/Dincrs Cub/S wrtch Cart 


" 1 *iy our dOTUIk ^ to ramsti ten cross. Rwanda 

EMERGENCY AITEAL. Ruoti 270. FREEPOST. LONDON &WIX 71UL 
*A lionJliun of £250 .* mote i» worth a ttilid m morh again ihroueh Gift Aid a 
VN- ran claim back the tea. 




faUkte. □ p V^tkkri«t.« l rv,«^n 1 4w^ tareQ ^ fnr ,^ tniwwvilterorlb , ttrt , CTOV 3 

I talayvreile S **f w *— D TKt Ihccbni. 4 you miukl Uhif j recrlpt S’ 

I ' Thv Onlnn Red Cnm Sontay a partkipuuig la the DECs Rwanda EnuTpmey Appeal | 







FINANCIAL, TIMES WEEKEND JULY 23/JULY 24 1994 


13 


LONDON STOCK EXCHANGE 


MARKET REPORT 






Dollar firmness pushes Footsie above 3,100 


By Terry Byiand, 

UK Stock Market Editor 

The UK stock market was never in 
any doubt where it was going yes- 
terday as continued strength in the 
US dollar provided the upward 
impetus for markets across Europe 
The 3,100 mark on the FT-SE Index 
was brushed aside as soon as trad- 
ing commenced and only a weak 
opening to the new session on Wall 
Street caused London to close below 
the best of the day. 

At the close, the FT-SE Index was 
19.6 up at 3,114.7. Comments from 
Mr Alan Greenspan, chairman of 
the Federal Reserve, reaching Lon- 
don just at the close, buttressed 
optimistic views of the outlook for 
the US dollar stocks. There was no 
great response, however, to the esti- 
mates for second quarter gross 


TRADING VOLUME 


■ Major Stocks Yesterday 


domestic product figures. 

The FT-SE 250 index gained a fur- 
ther 30 points to a dosing level of 
3,630.9, indicating that overseas 
demand for UK equities is spread- 
ing across the full range of the mar- 
ket. Trading volume was high 
although slightly below that of the 
previous session. Business in non- 
Fbotsie stocks increased to around 
57 per cent of the market total as 
investors looked for stocks likely to 
benefit from a continued recovery 
in the UK economy. 

The stock market was helped 
throughout by firmness in stock 
index futures, where the September 
contract on the FT-SE 100 Index 
was stiU showing a comfortable pre- 
mium against the cash market at 
the close. 

"Over the week, the Footsie has 
gained around L3 per cent, with 


most of the gain coming in the past 
two trading sessions as the US dol- 
lar has risen vigorously in response 
to favourable comments from Mr 
Lawrence Summers, US Treasury 
Under Secretary, and ftom Mr Alan 
Greenspan. 

Most UK market analysts are now 
optimistic on the London stock mar- 
ket on the basis of predicted growth 
in corporate earnings and divi- 
dends. A veiled warning on interest 
rates. Incorporated in the minutes 
of the June meeting between the 
Governor of the Bank of England 
and the chan cellor of the exche- 
quer, has done tittle to check near 
term optimism. 

Seaq volume of 612.4m shares yes- 
terday compared with 607.6m on 
Thursday when retail, or customer, 
business of £l-2Gbn confirmed that 
business in equities remains health- 


ily profitable from the point of view 
of the London-based securities 
industry. 

The overall advance by dollar-ori- 
entated stocks was boosted by 
recovery in several issues hardly 
handled in the previous session. 
Wellcome rebounded smartly from 
the weakness which at first greeted 
the results on Thursday. With ana- 
lysts taking a generally positive 
view on prospects for sale of Well- 
come’s anti-shingles and herpes 
treatment, the shares regained all 
and more of the setback. 

Stocks with home improvement 
interests recovered as fears of US 

competition faded. Boots, King- 
fisher and Ladbroke among the 
Footsie stocks all made firm prog- 
ress. 

There was also a good showing 
among building materials groups on 


broker recommendations and also 
among banks stocks ahead of the 
results season next week. I Cl was 
another to benefit from expectation 
of healthy results. With the dollar’s 
firmness rebuilding confidence on 
the near term outlook for interest 
rates, stores and retail issues were 
also in better form. 

Market strategists doubted 
whether longer term considerations 
on UK interest rates would hold the 
sector back if investors perceived 
that economic recovery in the UK 
would remain strong. 

A powerful boost to the stock 
market and to the Footsie Index 
came from strong demand for the 
oil shares, and in particular for 
Shell Transport which continued to 
a n ticipate news on the planned sale 
of its South African metals busi- 
nesses. 


FT-SE-A Alt-Share Index 

1.600 

1,425 > — ■ 

May Jua 

GoucKProapAtt 1fl84 

■ Key indicators 


Equity Shares Traded 

Turnover by valine (mffloo). ExcJutSng: 
btframariM* Bushwwana overseas turnover 
1,000 



Indices and ratios 



FT-SE 100 Index 


FT-SE Mkl 250 

3630.9 

+30.0 

Closing Index for Jul 22. 

3114.7 

FT-SE-A 350 

1569J2 

+106 

Cfiange over week ........ 

+395 

FT-SE-A All-Share 

1555.53 

+10^3 

Jul 21 

„.._3095.1 

FT-SE-A Afl-Share yield 

3A1 

(3.84) 

Jul 20 

3077.2 

FT Ordinary index 

2423.0 

+20.5 

Jul 19 

..-..3091.3 

FT-SE-A Non Fins p/e 

19^2 

(19.51) 

Jul 18 

.3082.0 

FT-SE 100 Fut Sep 

3127.0 

+13.0 

High- 

3123-2 

10 yr G» yield 

8.38 

(8.35) 

Low" 

3060.5 

Long gitt/equity ytd ratio: 

2^4 

(2J21J 

‘inua-day high and low for week 


EQUITY FUTURES AND OPTIONS TRADING 


VoL Ctatofl Day's 
OOth price 


«JL Ctolfcq Day's 


ASM Quant 

AbMyNafentft 

Man Ratal 

WetHjrawt 

Angkui Water 

A«m«QnMrt 
Arfc>VW0p!nst 
Amnc. BKL RxKMt 

Aoooc. UltL Ports 

BMt 

BATtotaft 

BET 

BJOC 

BOCt 

HPf 

BPBIntt. 

art 

BT(nPU| 

ermt 

Bat* of Soodantft 
Bactmt 
Btrmf 
BwCMtf 


BnL Aeroopacat 
Britt* Mrwaysf 
6riMhQ»t 

BntHhLano 

BntWi SMt 
Buul 

Burnufi Castraft 
Baton 

CabtaXWtaft 
CedtMy ScriMppi 
CdorGnxp 
Ceradont 
Cwttun Comnaf 
Coats MyaOnf 
Conan. UHonf 
Goakaon 

CoumriArf 
W9*» , 

Do La Hof 
DOmm 


EnwpnsoOtf 
EUtriumd LWtB 
RO 
r«om 

Fpwy 4 CoL LT. 

On Acddowf 
Genre* BecLT 
Otoof 
Gftnnd 
Granodat 
Grand MoLf 

oust 


ament 

HS8CP5pah»ft 


16X00 

1X00 

57 


Loartio 





+e 

tua— 







UEPCt 

701 

476 


892 


-6 

atn 






+4 

Mmt> 






♦3*2 

Maria x spancarf 

8.700 






MdnUBKL 



+15 




Morton (Mnj 

230 

127 



+13 

wet 






-2 

NawostBawt 

4X00 

464 




+6 

TWondPwwrt 

1X00 

446 




-9 

Wort 




6.500 

113*7 

*a 

ftarih VWeot Wtoart 


BM 




<z 

NorihonBacL 




S£O0 

740 

+12 

Nanfm Fbocttt 






♦4*2 

Narwao 




zjm 

343 

+10 

Poosorif 

479 

884 




+3 

PXOt 





zrah 

PUnMon 

4X00 

IBS 


TOO 

187 

+1 

+1 

Pwwrdant 

Priarientirdt 

1X00 

3.100 

517 

321 

+13*2 

3X00 



RMCft 

329 

947 


013 

357 

+5 

RTZt 

2X00 

859 


Xzoa 


+8 

Hacta 

1X00 

249 


73 


-1 


1X00 

406 



527 


Ftmoi & Cctnant 







Ftadknft 

773 

528 



312 

♦7 

FUwd WLf 

1X00 

802 


ajsao 

2S3 

+4 

**a 

RanooMt 

Boutoof 

1,400 

11X00 

240 

4» 

-3 


42B 

*2 

Rofcftwaft 

2X00 

190 

-ah 

6X00 

1.400 

181 

161 

*Zh 

+3 

Ryl Ek ScoOaodf 
Howl tasurancaT 

2.100 

8X00 

300 

263 

48 


083 

+7 


ixoo 

405 



S6*i 


Echfudora 

14 

1230 


3X00 

432 

*h 

SoooMi&NaKt 

9imn 

532 


2.100 

434 

-6 

8oiL Hpfeo-EfecL 


374 


113 

ZDS 

* 2 

SccttWi Pbwart 

2X00 

390 

48 


306 

-6 


2AOO 

110*2 


1X00 

2X00 

■ 10 
219 

+3 

-4 

Sedgwtcfc 

— a j 

743 

380 

188 

357 


1,100 

542 

-11 

Seram Trenrt 

2X00 

sea 


170 

Ml 

+1 

Shal Tmqmrt 

4X00 

742 

+8 

1X00 

530 

+6 

Stabet 

460 

cos 


83 

437 

+2 

StaM^iEab 

1X00 

253 

46 


075 

+0 

Sntlh (WiiJ A 

1X00 

473 


2oa 

184 

-1 

SmMl 6 Mvhmut 

2X00 

I48*r 

42 


653 

+13 

SniM Beedrant 

1.100 

415 


1,100 

035 

+12 

3mM Beeehwn Uta-t 

3X00 

373 

•«Z 

2X00 

370 

-a 

SmHtntada. 

833 

484 


1X00 

438 

-3 

Southern Elect t 

1X00 

044 

+11*1 

308 

290 

-4 

SoKhWOuBsL 

27 

608 


1.700 

179 


SoMh Went Water 

30 

534 

+1 

494 

141 

+1 

Sou* W+a. BacL 

1.100 

633 

40 

1X00 

140 

+3 

SouVnm Water 

20 

532 

+8 

3X00 

224 

+4 

Sandam Chandt 

1X00 

258 

-2 

640 

806 

+18 

Storrfiotiio 


217 


7X00 



3m AKanoof 

2X00 

329 

+7 


574 

-14 

TIN 

PfWt 

242 


433 

377 

+S 

11 Qraiot 

eso 

380 


1X00 

532 

-h 

TSBt 

9 pm 

204 

+1 

1X00 

480 

+4 

Tennec 

2X00 

158 

-1 

2X00 

502 

-3 

Tata S Lyta 

623 

415 

-a 

1X00 

167 

-2*2 

Taytar Woodrow 

343 

148 


431 

084 

+8 

Teocot 

6X00 

241 


4X00 

442 

-2 

TTmnoo Wtaort 

1X00 

494 

+2 

2.100 

740 

+8 

ThomBWt 

311 

1073 

46 

68 

340 

-1 

Tonednet 

2X00 

232 

♦1 

6X00 

201 

+2*2 

IWfgvHMi 

1X00 

82 


2X00 

160 

+5 

IMomi 

705 

382 

+1 

901 

295 

♦13 

IMowt 

008 

1017 

-1 

1X00 

184 

-1 

Unttad Btaoulat 

1X00 

316 

-6*7 

715 

327 

* 

UW. Noanpecm 

76* 

543 

40 

2X00 

BS7 

+19 

Vorioikmot 

11X00 

162*2 

42 

3.489 

& 

+3 

WmtunPCOt 

486 

730 

+17 

400 

502 

+1 

WMtoomat 

3X00 

634 

420 

1.400 

BOO 

18 

WWahVHder 

258 

611 

♦11 

030 

6 65 

+2 

WawnWatar 

107 

625 

+14 

1.700 

174 

48 

WMbraadt 

108 

643 


B33 

B74 

43 

UW— in HMgtLt 

411 

385 

-1 

304 

769 

+« 

WHa Comxxi 

2X00 

130 

+1 

148 

*39 

-1 

WtiiW 

840 

IfiO 


316 

342 

-1 1 

Wokeieyt 

430 

623 

+13 

1.100 

680 

+8 

YortahhoBoa. 

427 

637 

*10*2 

3X00 

140 

+1 

YorieWre Water 

383 

520 

40*3 

327 

602 

46 

zenecat 

1X00 

749 

♦3 


Derivatives markets led the UK 
stock market ahead yesterday 
as firmness in the US doHar 
strengthened confidence 
across markets in Europe, 
writes Tarry Byiand. Trading 
volume in the September 
contract on the FT-SE 100 
Index was moderate, with a 
final total of 12,237 including 


deals conducted after official 
hours. The contract remained 
at a good premium to cash 
throughout, closing at 3,127, a 
premium of about 13 points. 
On Monday, the fair value 
premium, calculated solely in 
terms of ex-dividend changes, 
comes down to around 9 
points. 


■ FT-SE tOO INDEX FUTURES (LOTS) £25 par tul Index point 



Open 

SeO price 

Change 

High 

Low 1 

Est vet 

Open tnt 

3ap 

3127X 

31Z7.0 

+13X 

3141 X 

31 06.0 

12237 

51007 

Dec 

3132JJ 

3137.0 

+13.0 

31 324 

3132.0 

S 

1017 

■ FT-SE MD 2SQ MDEX MURES CIO par tul Index point 



Sop 

- 

3630.0 

aox 

- 

- 

0 

4425 


M FT-SE Mn> 2S0 BfiJEX FUTURES (OMLX) CIO per fufl Index point 

Sep 3JJ40X I 

Al apan Manna Sgira am tar prentaua day. t Exact wham stawn. 

■ FT-SE 100 MDEX OPTION (LBTg (*3114) CIO par full Index point 

2SSP 3000 3050 3100 3150 3200 3250 3300 

CPCPCPCPCPCPCPCP 
tag UD>2 10 13^2 17^3 88*2 29 BS>2 40^2 W2 72^ 22 104*2 19*2 142^ Ah 1B8 

Sep 204 25 IB 34la 12B 471a 94 67 86 Vfli Wz UOh 29*2 156 17»j 159>a 

0Ct 210 »^182l2 52^ 148 60 IIWj 00 02 114 72 1401* 52 iftl 2 39 212*2 

Nov 230*2 51b 20012 65^ 166 B3 1 * 13g^l04i2l11i2 128*2 81*2 157*2 TO 1 ! 157 55 222*2 
Dttt 214 75>2 1541a 1TB 100 168 Bnz 31> 2 

CM* 5314 Pi* SXTO 

■ EURO STYLE FT-BE IDO WXEX OPTION (UFFQ £10 per 6X Index point 

2828 2878 3023 3070 3120 3178 32SS 3275 

tag aoifz 7*2 1553* t3 110 2% 81*2 38% 50*z 56*2 3*2 85*2 Wa 122*2 3*2 163b 

Sap 221 20*2 180 29*2 M3 42 109 57*2 60 78 60*a 104 38 135 23*2 170*2 

Oct 233*2 34*2 103*2 03*2 107 105*2 65*2 162 

DK 2B3 55*2 WhWl 137*2 186 U 170 

Urf 298 77*2 233109*2 177*2150*2 132 201*2 

C* Pus 2,175 * itaderiytng fade* nriua. Renton* Ann m hand on ratamoit prim, 
t lung (Sated enpfry oonfla 

■ EURO STYLE FT-SE MOP 290 MDEX OPTIOW (OfcflJQ glO par I0« Indue point 

3500 3590 3000 3850 3700 3750 3800 3850 

ta 108 52 81 70 » 106 

Can 0 Ml 0 SatOonent prim and sines m Won it 430pm. 


FT-SE-A INDICES - LEADERS & LAGGARDS 


K«*Sm 030 665 42 WawnWMMr 107 OS +14 

LadbraW 1.700 174 «S WMbraodf 100 543 

Laid Soaottut 033 674 *3 Ull^ii* Mwaa-t 411 385 -1 

Laporta 304 700 +4 WBa Camion 2500 t90 +1 

1094 4 Ocnartft 140 490 -1 MiW 540 1«> 

UoydbAbbe* 315 342 -1 , Wtofcateyt 430 BZ3 +13 

Uoydi BaMft 1.100 660 +0 Vortahha Bact 427 837 tio^ 

LASMO 3X00 M3 +1 YorioNre Water 383 520 +0*2 

London BocL 327 802 +6 ZMacat 1500 740 *3 

Bum on MB* warn fcr ■ nton * M|or m8aa M •* SEM pota )o«Mqr ob8 43I**. Tom 

B tn aOHa nr m im nmtH» ton. iMfesM « FKE I DO kta oaaMnvl 


Percontaga dt o ng na since Doownbar 31 1993 based an 

Bt^nrka WI*3SI_— +1237 FT-SE MU 250 -423 

OIE*ftnOM4PM._ 4-lia Sentcas -822 

PiMhfli Paper *b»b— +1002 taMSma -&5I 

0k Hold +735 Ma Mb —d a ta .. -6J> 

Hooral Eaaafcn +7.12 HmB> 5».. J>wt 

EnWntag—: <037 DWritaBW -TM 

QntalB +0.10 FT-SE-A M-SBn -733 

EabwPn MuMP +431 Torilm & ApiM -734 

UintlMk. +321 Tianapat -733 

Gan MaMkdunn +414 FT-SE-A 350 -738 

DMM MaaMOa __ -028 tawMBM TraJs -73B 

ReMeniHM -032 BcOndc 4 Bee Eqnnl — -5.12 

Modi -1.15 BMcly -5.12 

FT-SE SnOCvor H -130 BufldM MatoUi -426 

BwmrtM — -MS FT-SE 108 — ... -538 

FT-SE SmauCan ________ -250 Baking & CwoUucaon -444 

FT-SE Hd 250 M ff -3.71 SpfetK Wtaea S CUm -033 


tanaataaH Tnatx ____ 
Bcchodc 2. Bee Eqnnl . 
_________ 

mUku HiUritnli 

FT-SE 100 ______ 

BoMog & Ctratmcaon _ 
Spfeto; Wtaea S OSm — 


Friday July 22 1994 

UhBann 

fond Ma m ta kw w 

CtamoKr Goods 

Pwpeffr 

BaniM, eoaml — - 

Pt iauMLBkuP a 

FT Gold Hoes Mn _ 
uaflka ________ 

Tataaanw i ft u B a n* 

HoewnoM Qooda 

ManaaM Barts ___ 
Hraod* _____ 

Gn DbHwian — _ 

hamnea — 

Bata. 


FT - SE Actuaries Share Indices 


The UK Senes- 


Dk fim HE Man tad 



Jul 22 

ctart 

Jut 21 

Jul 20 

Jul 19 

*8» 

W* 

tut, 

Mb 

fit 

Mm 

l*w 






Law 

FT-5E10B 

3114.7 

+0J8 

3055,1 

3077X 

30313 

2827 -7 

401 

676 

17.« 

Tom 

116838 

yawn 

2/2 

28789 

24* 

36203 

3/2/94 

9888 

23/7*4 

FT-SE Hd 250 

383QJ) 

+aa 

36008 

S587X 

3S744 

32029 

140 

5.70 

21.10 

8037 

1345JB 

415ZX 

30 

33B3j! 

27* 

. 41528 

3094 

13794 

21/1*6 

FT-SE Md 250 ok b» Tm*t» 

3834X 

+DJ 

38047 

3588X 

3S7B.1 

3216.1 

3X5 

air 

1985 

83X0 

1343X9 

4188-7 

19/1 

3382.4 

27* 

41807 

19/1/94 

13783 

21/1*6 

FT-SE-6 350 

15802 

+0.7 

15608 

15503 

15545 

1415X 

387 

652 

18X1 

35.17 

ianx2 

17703 

2/2 

145L3 

24* 

17703 

2094 

6645 

14/1/86 

H-SESonRap 

1821.45 

*0A 

1813.48 

1P$10 

180449 

1631X4 

109 

42B 

M-40 

3184 

140179 

209496 

tn 

1738LM 

8/7 

20949B 

4094 

I3S17B 

31/12/92 

FT-SE SqioKra ax in lU 

179053 

+ft‘ 

1/83X6 

1778.15 

1774X6 

1031 XG 

126 

4.74 

2115 

32.73 

138148 

2060.72 

tn 

1732X8 

12 n 

2060172 

4094 

136179 

31/12*2 

n-SE-k DLL-SKUE 

15S55J 

+0.7 

1645J3 

153738 

154095 

140238 

181 

BJ38 

18-75 

3434 

121335 

171411 

2/2 

144SX6 

« a 

1764.11 

2/2*4 

8192 

13/12/74 

■ FT-SE Actuaries All-Share 



















Dora 



Tear Oh. Era. PE »4 TiM - 


-1914 


- - 

9a CaapMaa 



Glaxo hit 
by Zantac 
concerns 


Bad news continued to dog 
Glaxo, the UK’s leading phar- 
maceuticals group, as the spec- 
tre of a long T unning legal suit 
returned to haunt it, sending 
the shares into retreat. The 
news comes only a week after 
the market came to terms with 
news of big losses in its £L2bn 
investment portfolio. 

The shares, which are also 
actively traded in New York, 
had performed strongly in 
early London dealing as they 
responded to the rise in the 
dollar. 

Then in the afternoon the 
company announced it had 
issued patent infringement pro- 
ceedings against Novopharm, a 
Canadian generics company 
which is attempting to get 
around Glaxo - a US patent on 
Zantac, the anti-ulcer treat- 
ment which is Glaxo’s biggest 
selling drug. Glaxo is already 
suing Ciba, which plans to sell 
a generic version of Zantac hi 
the US in 1996. Within minutes 
Novopharm put out a state- 
ment saying that it was count- 
er-suing Glaxo for 6300m. 

There was a rush to sell the 
stock particularly in the US 
and after being 10 higher the 
shares ended the day 14 lower 
at 574p with turnover boosted 
to 5Am shares. 

As the market closed the 
story became even murkier 
with claims from some ana- 
lysts that a version of Zantac, 
known as Form 1, was already 
being sold in New Zealand and 
Denmark. If true It would 
undermine Glaxo’s claims that 
Form 1 is innately unstable. 

Cadbury downgrade 

Soft drinks and confection- 
ery group Cadbury Schweppes 
was weak again as concerns 
over strategy were com- 
pounded by a downgrade by 
Lehman Brothers. The US 
broking house lopped £21m 
from its 1994 estimate to 
£449m, and £60m from its fol- 
lowing year forecast to £463m. 
One of its key concerns is 
tough competition in the US 
soft drinks market where the 
threat from private label sup- 


NEW HIGHS AND 
LOWS FOR 1994 
new non ne- 

BlflUllHQ 5 CW8THM (Q A way. CHE MGALS 
H Ewapoan Criou, Irnpac, MBHMUIOH8 (1) 
Polar. BECnmc s SECT BMP cq Nofeta 
Pit. Unwell. ENOtNEERMa « Ranald. 

Thyssoa, EXTRACTIVE BUS [7J Anglo An 
CaaLDnw. Pacrilc Are. RadonnWHIM 
WHm Aran. Unouatoyi' PH. MVEffnSHT 
TRUSTS m INVESTMENT COMPAMES pg 
China inv. i On. Joan OTC VMo_ Oryn. 
■asunc * HOTELS p) CaMto Comma. London 
CU^IOWLnlM BuatMM QomnOn OH, 
INTEGRATED (T| OecMenOC OTHER BERKS 5 
BUSHS pi KkMta Lumpur Kaaong Bhd_ 
PRCrenV Ol cmawtan HO. RETAILERS, 
FOOD (1) lfl» (WJ, RETAILERS, OENERAL (31 
EOni, Homo of Frasn. NBM. BUPPCRir 5ERV8 
Q) Mnamura. TTH BCOMMWICATIOHS (4 
Eocuicor, TEXTILES A APPAREL (1] FamrinaSa. 
TRANSPORT P) Bogoocn A. Nodond ERpneri. 
TNT, AMERICANS (1| Ainer. Cyoramd. SOUTH 
AFRICANS J1J OoM Ftakb Prop. 

NEW LOWS (41). 

GILTS O] BREWEHE3 (t) UlM. MIUOTO 8 
CMSIRN PI BhM, GtoMon f43. Toy Honwa. 
BLUa MAILS A Mans (1) Syemvoa. 
CHEMGALS n) RSmBUTORS (i| 

HerBapA BECTRNC A ELECT BOUP (4) 
Bowtharpa. CanM TactaNquoA Koda ML 
TunstaC. SHUHEERHO n OS. QBE ML. 
RMmda, FOOO MANUF 0) Grand Oanpiri, 
HEALTH CARE p] Droar SctanWc, Tepnsl 
Dloorwrtica, NOUBBWLil 00008 p) CotmcI 
Piiihar A. INSURANCE (3) Angmton IMHl. 
kKtapandanL LoanM Lantaon. HWESTHBir 
TRUSTS (1| MVEBTMENT COMPANKS (1] 
South EM ANan Mm. LEISURE 8 HOTHS (O 
Wtantatay. 5EDM (Q Hontnoui Ookta. 
PltanAlk, OTHER HNANCtAL ft) 
nmnstarin^naMotaat QoOorv. PROPERTY (3) 
Pad, YFW. mmULERS, FOOD (1) FfcwKon, 
RETAILBTS, GENERAL Ph Cdorvtalon. 

Rtnrfjya. SUPPORT SEHV8 C4 Max. WtutaRy, 
TEXTILES S APPARS- (A) HntatunB. Lambert 
Howanh. LMda, UK SNay. ANBQCAMS 0) 
Colga ta - Pa inioi ta a. 


pliers has forced the market 
leaders to make big price cuts. 
With such known names as 
Canada’s Cott - one of North 
America's biggest private label 
cola producers - moving into 
the UK, Lehman believes a 
price war here is highly likely. 

Cadbury also continued to be 
undermined by worries over its 
25 per cent stake in Dr Pepper, 
the US soft drinks group. 
Observers are growing increas- 
ingly concerned that Cadbury 
will be unsuccessful in its 
attempts to either gain board 
representation and greater 
co-operation, or a full takeover. 
Cadbury shares slid 5 to 434p 
on moderate turnover of 2m. 

Building materials stocks 
were in demand, with Credit 
Lyonnais Ulng adding its sup- 
port as it recommended an 
“overweight” stance. The bro- 
ker said that an increase in 
new housebuilding was stimu- 
lating materials demand and 
price rises were being sus- 
tained tn a variety of goods. 
BPB gained 10 to 343p, Blue 
Circle 8 to 322p, Mariey li to 
166p, and Wolsely 13 to 823p. 

Composite insurer Commer- 


cial Union tumbled 11 to 542p 
as the market nervously 
awaited the much-heralded 
rights issue which is antici- 
pated ahead of the interim fig- 
ures scheduled for August 10. 
Analysts believe the insurer 
will bring its figures forward 
and announce them with a 
£325 m cash call, possibly os 
soon as next week. 

Reuters Holdings continued 
under pressure from some 
heavy selling by one US house, 
believed to be Goldman Sachs. 
The shares were down for 
much of the day and closed 
only a penny firmer at 468p 
with turnover exceptionally 
high at 10m shares. 

Wellcome gained 28p at 633 
after the market took stock of 
Thursday’s slightly confusing 
interim results, which had 
been prompted by a shift in the 
pharmaceutical company's 
account year. On consideration 
investors decided that the high 
exceptional charge and slow- 
down in Retrovir sales were 
more than countered by the 
rise in overall profits and the 
pick-up in Zovirax sales. The 
shares bounced 29 to 634p with 
the help of a couple of broker 
recommendations. 

ICI, the country’s largest 
chemicals group, rose 19 to 
837 p as the market grew 
increasingly optimistic over 
the prospects for second-quar- 
ter results on Thursday. The 
shares were also buoyed by fig- 
ures from German group Bayer 
which predicted it would reach 
its target of a 15 to 20 per cent 
rise in profits for the year. 

Shell Transport shares 
approached their all-time high 
in response to hopes of an 
early conclusion to the sale of 
its Billiton metals business. 
But the stock moved back from 
its high on reports that the 
Nigerian ail workers negotia- 
tions had reached deadlock 
and closed 6 better at 742p. 

Bank stocks gained ground 
ahead of the interim reporting 
season which begins next 
week. LLoyds, which is the 
first to report on July 29. rose 3 
to 560p, Abbey National, which 
declares on August 1, gained 9 
to 4Q8p and National Westmin- 
ster, which reports the follow- 
ing day rose 8 to 464p. 

British Airways was said to 
have been helped by a recom- 
mendation from SG Warburg. 
The shares climbed 4 to 435p. 

Good UK car production fig- 
ures stimulated rises in related 


■ CHIEF PRICE CHANGES 
YESTERDAY 

London (Pence) 

(Uses 

Black Arrow 41+8 

Slue Circle 322 + 8 

Close Bros 235 + 15 

Cranswick 157 + 6 

Delta 522 + 15 

Int Business Comm 207 + 8 

Jupiter Tyndall 301 + 12 

KJeinwoit Benson 469 + 12 
Mariey 168 + 11 

Merivale Moore 71 + 11 
Prudential 321 -+ 9 

Shanks & McEwan 89+4 
Shoprite 36+8 

Smiths Inds 464 + 13 

Waste Management 588 + 19 
Wellcome 634 + 29 

Yorkiyde 260 + 10 

Fatts 

Commercial Union 542 - 11 
Gibbs Mew 391 - 27 

Glaxo 574 - 14 

Klearfdd 129 - 7 

Sycamore 1M- « 

UK Safety 51 - 14 

stocks. Among component sup- 
pliers, GKN gained 8 to 624p, 
Avon Rubber 10 to 600p, Laird 
11 to 403p and T&N 6 to 242p. 
Among distributors, Cowie 
added 5 to 282p, Lex Service 5 
to 464p and Inchcape 3 to 459p- 

News from the US that DIY 
giant Home Depot had dis- 
tanced itself from entering the 
crowded UK market brought 
some respite to the belea- 
guered sector. Kingfisher, 
under pressure following news 
that Home Depot had hired a 
former B&Q executive to spear- 
head its European expansion, 
rallied 8 to 509p. Texas owner 
Ladbroke gained 5 to 174p, 
while Do It All parents Boots 
and WH Smith climbed 5 to 
527p and steadied at 473p 
respectively. 

Salibury-based brewer Gibbs 
Mew announced a £12. an deal 
to buy nearly 200 pubs and a 
£13.6m two-for-three rights 
issue at 340p a share. The com- 
pany also announced a tripling 
of full-year profits to £3.lm. 
The shares retreated 27 to 391p. 

Granada was again under a 
cloud following this week's 
director's share sale, the stock 
slipping a half-penny to 532p. 

More bear stories circulating 
around Wembley saw the 
shares slump 30 per cent to 
7%p, although turnover was a 
measly 63,000. The company 
confirmed that it would not 
pay a dividend on its convert- 
ible preference shares. 


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+05 2092X1 2903X4 2917X6 232060 

+07 1097X7 1680X9 1672.40 179X30 

+05 108X13 1701X5 1711X0 1500X0 

+07 1574X3 156128 1558X8 1532X0 

+0 8 239251 2373X9 236X32 200X50 

+QX 116X13 1164X1 1161.40 118X00 

+08 230457 2271-98 227027 212X00 

+15 2253.48 221658 2202-13 179420 

+02 105X43 183X40 1854.15 193650 

+01 203X78 201X15 203459 198X30 

+1,4 175751 1725X5 171X03 103750 

+06 1673.10 168250 188X15 151214 

+00 2162.77 216159 217043 203150 

+09 2753.15 276048 2801X5 246850 

+06 124022 123X05 12SX04 142440 

+14 242X33 238458 236005 344060 

+1.7 290053 2810.10 280777 257X80 

+04 1894X9 1897.20 187558 156740 

+04 1 SB.68 1581.10 157X78 I44Q10 

+Q6 276069 27BQ29 276030 238X90 

+07 154X30 1537X8 154095 1402X9 


XII 012 
X26 X42 
X42 451 
2X1 013 
X74 040 
3X7 041 
255 0-00 
X4B 4X9 
4.17 251 

453 XOB 
450 1074 
043 t 
455 771 
X45 1X13 


4X5 047 
4.13 005 
X17 1158 
X05 7X9 
35! 1159 
X65 028 
178 354 
2-16 1X7 
351 036 


1370 3X77 964X3 220777 
1X31 5X30 943.18 3319X3 
2X33 27.43 104X35 2386X2 
2250 4018 1004.18 3349.11 
1X14 4095 101753 1914X0 
19X2 3X29 902X9 191957 
19X7 24.79 95040 186043 
23X8 3953 939X0 298833 
6X27 1X18 1 DOT XI 138050 
1X07 5051 88574 2792X3 
11.13 72X4 949X0 281012 
3 6079 95151 2389.77 
1X78 10X3 85X45 245842 
0X4 8X77 889X2 212039 
1082 3018 117851 1S7P3B 

1X58 5071 65555 2737.13 
1256 7358 822.45 368158 
9X2 38X3 84455 199X51 
1061 82X7 83X74 292U7 
1006 8950 85X02 3701X9 
14X9 4X22 101957 2279X5 
3258 3557 90746 188659 
MX3 3005 933.67 318131 
1X75 34X4 121X38 1104.11 


19/1 1804.19 
2/2 207X9 
17/2 199118 
17/2 2975.11 
18/1 1511X4 
4/1 1 61015 
2/2 147020 
3/2 218458 
19/2 113002 

2/2 218092 
2/2 2024.12 
7/1 1884X0 
2/2 1084X8 
3/2 158071 


4/2 203474 
4/2 201X77 
24/1 1133X2 
19/1 2189X1 
2/2 283858 
tn 1762X3 
t!Z 1453X0 

2/2 2018X8 
2/2 (445X5 


27* 3207X7 1911*4 
W 331033 2/2*4 
err 2300x2 17/2/94 
27* 3349.11 1772*4 
25/4 *ww 28/1*3 
27* 1834X4 29/12*3 
28* 188043 2/2*4 

24* 2898X8 3/2/9* 
21/4 2*5030 16/7/87 

24* 2712X3 2/2*4 

34* 281013 2/2*4 

24* 2379X0 18/12*3 
1* 2481X0 29/12*3 
27/6 212039 3/2/84 


24* 187039 2/2*4 
24* 2737.13 4/2*4 

8/7 380158 4/2*4 

24* 1824X0 29/12*8 
1* 2921X7 19/1*4 
1/7 3781X9 2/2*4 
4/7 2279X5 «2*4 

27* 2132X0 5/9*9 
27* 318431 27/94 

34* neon 2/2*4 


914X0 23/1*8 
BB&BO 21/1*8 
975X8 21/1*8 
978X0 9/1*6 

917*48 21/1*8 
87010 an 2/88 

83800 1/2*1 

960X3 14/1 IBB 
983.10 14/1*8 

80250 3/10*6 
90X30 7/1*1 

994X0 8/12/86 
00250 3/10*8 
924X8 1/5*0 

0358 13/12/74 
372X0 23/1 *8 
esoeo 23/1*6 
87090 25/8/92 
96720 23/1/BB 
902X0 27/1*6 
85030 1/10*0 
71850 IB/a/32 


■ Hourly movements 

00 aw slop nmc 


FT-SE 100 a n a. a 

FT-SE MU 250 3812.4 36T05 36H 

FT-SE-A 350 1S67X 1563.7 1568 

ThMo/ FT-SE ItOHJoh- U K am Loir 9.08 am 

■ FT-SE Actuaries 350 Industry baskets 


Bklg 8 Cranrcn 
Rtanuoeuitcb 


Hgh/aoy Low/dgy 
3 

3831 X 38104 

1S72X 15605 


Cloae Previous Change 


EqAfaf — etton or otoun dote vnk»_ row — — — b -.^j ^ 

FT-SE Tod Mum MKr> 31/1MB 1“°^ FT-SE MM SjBti" "g* iJS^InancMS 

FT-S£ SmrfflCap 31 M 2 «: 1363.78 FT-S£-A350 JSS iSS FT^aSS 

n^S*MS^p*TfB 31/12/1K! 1363.79 FT-SE |00 5 JSB 3 S 5 S SflSf 

FT-SE MW ISO 3T/12/BS 141?X0 BoeWCity d. 


U1/1BW — — — ■ 

31/12/83 1000.00 FT-SE-A Al-Siare 
31/12/W 1000.00 AlOtf*/ 


2Q/12/B9 IOOOlOO UK COS Wc» 
10/4/82 10X00 IrriPK-Unhed 
10/4*2 100J» Deto and Loans 
31/12/85 lOOttOO 


31/12/75 100,00 
30/4/82 100.00 
31/12/77 100.00 




:anriCaptadRareDamplad by The 
ige al Hie LMUd KMdbn and 
Endunge and Tha HnancW Dnoa 





















FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 



















































































FINANCIAL times WEEKEND JULY 


23/JULY 24 1994 















































































































FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 



































































































financial times 


WEEKEND JULY 23/JULY 24 1994 



























































































18 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


WORLD STOCK MARKETS 


NORTH AMERICA 

UjmraSIATB(Jul22/ljS$| 


MCA g® 

■22'US$» te 

-J> gf* gv — 304 Kg"* 
+5 57% 48% 14 _ S* 3 ! 


-% 70% eb% an 250 Mate 
-> 41$ 2 a% 2 J 203 KanMA 
♦V 134 10 u 40 MnutB 

_ 20 3.1 11 J i*gn JP 

-* S9V 44% 1018.2 MrgSt 
+4 43 324 BlI 112 MonKn 

+* 84 G&Vi 40 24.1 WHO 


+% 41*2 XI ■« 0.1 30.7 TmacD 
*4 12% BV ?J) 333 Tnn 


+% 52*. 48*4 23 TLB 

-% IS 144 37 107 MUlCd 
48% 364 32 105 UptiyO 
*4 274 2Z<S 0.1 212 mm£> 
_ 514 394 3.1 _ NMsoC 
4-1 5H% 404 13 330 NHW 
-4 924 48% 22 209 MA 

45 ac ft El B a 

aftfttftfSft 

.. 134 114 4.4 1O0 Mm* 


-fo SIS 104117 112 g*L 


SJ?4 +14 86* «* 45 09 


ft 3 

«4 + 1 ? 


35 254 12 U.J SS“ 
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38% 22 242 g*E™ 
IB* 12 152 

ft 12W5 SEP 


-4 004 55 2j0 hj tmjh 

-4 294 164 62 112 Inn 

-14 111* 764 1 0 202 ~ 

4-5 a 434 08 132 


-4 58V 444 35 17.7 5M**C 

-4 gf jm 591? SJ ill i£% 

3ft StiUlS? 


_ 10 84 03512 EurtJts 
♦4 444 374 22 912 RM 


11 JO -JO 1350 826 62 
14150 -450 182 115 85 


t% 37% a 


76*2 10382 mokD 
494 02 132 TbBaB 
Z? _ 132 TkMT 
314 32204 Tmf.ni 
484 12 43.1 Tmtfar 
29V 11 152 Timken 
34V 2J 72 Tctoratc 


^ftftlTtt n** 

+* 00 58% 32 21.1 TMMC 

S5 194 12303 T«*B 

^ftgSiS^JSSon 

+% 37*2 31V ID 708 lorOom 
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274 12 132 TmcS 
10V 12152 Tim* 
32V 22.7 TRWA 


-V 07 V 68% 52132 KBp Bn 317 


d/9ly I 7 rMC uw 

-V 22 C rt 05 382 
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— “V 42V 3.1 340 gS" 


^ ft ft ds 6 ?! 


37*2 27 V 82 152 
53% 25V 3011.4 
24% 4.0 2S0 


An**«m 24V 
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24V -V 30 23% XG _ gg, 
5Jl +V 27V 3 12 75 E*3HS 


iR aov ft "-■ BR’W 
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254 34V 224 _ 206 Ntor 23% 

rev -5 rev 674 42 192 Mtf 014 

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v% 554 41V 42 92 ItalAflA ffli 

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z^sa zss? 


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t- _9» 7 _ 512 onttat 888 _ 1220 BM 02 


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13% *V IB 14* 22 252 MnFr 478 TIB 471 SO 

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14V — V 16V 12V 83 1 12 md* 444 *1 570 430 8.1 

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52103 taMM 599 *21 880 
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31 12 8.7 MBka 22% *V 

J S" EUROPE 

WSTR1A (Jli 22 /SOI) 


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SH -171288 480 — 
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SM 12290 +10130099201 42 

SOUP 2280 -ft 2.73U 1J92 22 
TOnUM 302500 + 1 JOO jSjm 2sSo 12 
T 0 *Fr 1aS» +10024262 104I7 22 
UBtem 11280 +S9O10JW1OM 1.1 


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— canon ijso - 101220 1230 m .. 
™ Canons 3.400 -SO 3260 1590 —4X8 


zss? m mma™ 

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717 +2 708 


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42? -8 Si* 301 12 _ i 

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1230 -10 1440 1240 0l5 — 

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1J80 -ID 1270 1^20 „ _ 
1280 +2014901250 02 _ 




80Uiar 5030 -2073JD 68 52 

«BM gg +1.40 110JD 90M 32 


15% _ 20% 14% 7.1 U UAL 

25% — 29V SV 42 132 USX 

ft iftHB 1 *? — 

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42V +1 45* 31 OB 250 USK 

— 74V 59V 32 18.4 UnPaC 
22% _ 25V 21V 7.7 142 Dm 

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«T% -V 45% 34V 3J320J U3H2 
26* +v 20V 22V 22 12.1 uataBW 
28% tV 27% 24 02 5.1 USUCP 






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2050 -30X820 1085 XB 

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119 +1 142 600 10 

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410 +10 480 360 1 0 

113 +5 144 92 10 

96 +4 110 86 11 

32 +ZJ0 122 54 30 

,08 *2 128 78 80 

734 +9 776 S» 1.1 

735 +12 780 525 1.1 




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34* 40 190 


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670 +6 898 567 10 

2320 +70 X080X173 1.4 

1019 -a 1340 1015 13 

228 250 ,on * ■ 

573 -1 747 

780 +25 970 

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354 -1 584 394 — — 

985 +3 1010 798 — — 

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1A3 -03 X02 1.12 11 — 1} 
102 +02 202 1J5 — — I 
1100 -.18 1100 9.73 ZA 43.1 4 

198 +.10 400 203 Xl — 

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208 -06 308 2-3$ 17 743 
708 _ 10iM 700 16 214 « 

145 - 401 115 Xl — 

1008 +02 1108 1X42 40 1X8 
022 -.04 700 505 XO — 
807 +09 1QJ3 805 X3 03 - 
4.18 +06 sa 304 13 — 
2-H +03 X79 100 20 — 
302 +02 4.13 303 30 240 
4m +04 192 *13 4.7 _ 
102 +05 X1S 108 — — 

104 _ 243 133 _ — 

105 +03 142 XBO 40 1X7 
126 -07 300 240 10 - 
tt. 43 +07 806 500 00 — 
116 -.08 400 203 30 — 
508 -.l? 608 400 40 _. . 

_ 107 -03 104 1.15 60 — 


1.12 30 1_ ll A J V i \ % a a <m 


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US INDICES 


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BBG +1 739 56D ttanCB 406 -05 X2S 408 0 J _ 

-f 580 407 _ _ Doom 637 -03 7.13 601 7 A XI 

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JU id JU 

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W 223X81 221095) 


M CWnarta|17lTO 
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205X5 20 192 207X6 234000 3/2 
10150 10150 1029.8 113X10 3B 


195700 J7/6 
00400 56 


CSS TDRKcflfEfld 83) 
CBS Al Shr (End 83) 


42X1 42X6 4230 
27X4 27X1 26X0 


45400 31/1 
29400 31/1 


40800 21A 
25700 21/8 


CraUt Akdcn(3a/i2/B4) 
Traded MraC/liSI) 


41X59 41X48 41X73 46000 3/2 
1077.15 107155 107198 1=2X25 1/2 


39X97 me 
101108 06 


C®. 40 (1/7/8B) 

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05to SE0KBO/1/83J 


03=627 203X20 305404 


111X74 111452 110801 


143105 n 142051 1542G5 ff= 


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unts 18118 18204 18117 22708 17X71 29X48 1650 

(30) <24« (SUMS# (8/4/32) 

GUhd- Pa/l Ugh 378300 P783J5 ) Low 388408 B70832 1 (TTmo m B c id^ l 
Ds/a H 01 3744.10 1375149 ) Low 371404 072047 ) (tettet) 


•1| •SfBjj’Wa 

102S tjS 04 

1020 +00 7070 00 

=000 1.«W 20 
+14 1066 710 ,0 
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i SS “ : 

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-2 831 362 30 
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WJBdt 707 -0 690 

g& & ^ s 

££ jto NS 

urns 427 +1 488 

mask 407 -8 4S3 

tePat 827 +2 GOO 

WESak 880 — 840 

tenia 408 +1 449 

terra 1,150 -io 1400 

tekdi 10 ZD -aoi.iifi 


— 840 770 0. 7 ■— 

+3 449 310 —700 WTWOI 
-101.400 84S — _ 

SOI.Ilfi 700 ._ — 

00 1010 B» _ — 

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7JB +.19 154 608 1.4 — 
705 _ BJZ 700 10 _ 

240 +-07 2ja 727 30 _ 

4.76 + 03 gM 4.16 10 — 
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NWSp 1070 -10 1.400 10=0 _ __ 


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70S -2 791 

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769 +3 788 

732 +2 774 

440 —1 404 

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335 — — HSBC 8X60 +06 131 80 10 — 

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M 401850 4038X0 4079900 I&7 


27319 Z73X6 Z74X4 


M 384X46 382195 387X59 180 
M 417160 4181.74 460990 2M 
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329108 20/4 
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CuMdag B lSEdl/Ba 377.79 37400 37150 41X79 2/2 


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JSE Odd (28/9/78 
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551.43 55105 55409 


20470V 20840 21130 

03740V 63640 6359.0 


233100 4/1 
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174900 14/2 
544X09 18/1 


«X Genaaipg/12/901 18340 181X6 181 7 J 197200 4/2 


Madrid SE (30/12/85) 30705 3X04 304.40 


45201 451 S) 45305 41200 43X02 48200 4.40 

02) (4/4) G/2/94) 1 1/5/329 

S2701 52X43 52902 58X50 SXLOS 80X58 182 

(2/2) (21/4) 0094) (210SS9 

4400 4431 4438 4X84 4109 4X40 X64 

(14/M M/fl P»«W) (1/10/7 4) 

25008 24X70 25X89 267.71 24114 287.71 4.48 

(20 m P/2W) (25/4/42) 

43304 43300 43308 48709 42187 48709 301 

02) can 02/M) (0/12/72) 

71503 712.77 71902 80X91 693J9 89X93 5407 

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135X34 1382.65 13SB66 150320 2/2 
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128X38 477 
185X18 4/7 


ASatoanMGai {1/2/371 146X7 144X20 144X30 


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50X23 50056 80404 CSX27 15/5 

23000 2278,4 OMB? 24GSL5D 35 

215025 211130 =13805 2Z7I.11 185 


75701 27/5 
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Sndra Bk M (31/12S8) 
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1Z1101 119X41 115708 
334.44 917.25 91221 


142X34 31/1 
103329 31/1 


115707 18/7 
81X10 13/7 


Dow Jones M. ON. Yield 


845X60 6577.70 847400 


S X P md. Dtv. yield 
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Jul IS 
2.71 

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2.74 

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2.48 

2.47 

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23J37 

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FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1 994 


19 



* 

WORLD STOCK MARKETS 


AMERICA 

Corporate results fail to spur Dow 


Wall Street 


DS share prices meandered in 
lacklustre trading yesterday 
morning as the heavy flow of 
corporate results flooding into 
Wall Street this week eased, 
writes Frank McCurty m New 
York. 

By 1 pm, the Dow Jones 
Industrial Average was 1.62 
lower at 3,730.83. while the 
more broadly based Stan- 
dard & Poor's 500 was a scant 
0.14 ahead at 452.75. Volume on 
the Big Board was modest, 
with 157m shares exchanged 
by early afternoon. In the sec- 
ondary markets, the American 
SG composite dipped 0.51 to 
432.73. while the Nasdaq com- 
posite added 0.65 to 715.68. 

The Dow industrials opened 
higher, but most stocks 
quickly retreated to near their 
opening values and stagnated. 

The narrow range in which 

EUROPE 


share prices moved reflected 
an over-riding sense of caution 
which has gripped the market 
since Mr Alan Greenspan, the 
Federal Reserve chairman, 
appeared before the senate 
banking committee on Wednes- 
day. His testimony caught the 
fin anc i al markets by surprise 
by suggesting an imminent 
move to lift interest rates was 
likely. 

In the second leg of Mr 
Greenspan's Humphery-Hawk- 
ins economic briefing yester- 
day mo rning , the Fed chief 
delivered much the same mes- 
sage to the House banking 
committee as he had given ear- 
lier in the week. With Mr 
Greenspan saying nothing to 
calm investors’ rekindled fear 
of a rate increase, the market 
remained in a torpor. 

The downward tilt paralleled 
the morning’s action in bonds, 
where prices softened in trad- 
ing held to a mhiimiTm by the 


approach to a summer's week- 
end. 

Among the Dow Jones indus- 
trials, McDonald's dropped 51 % 
to $26% in heavy volume of 
3.2m shares. The downturn 
was a delayed response to the 
fast-food chain's earnings 
announcement, which had elic- 
ited a muted response the pre- 
vious session. After digesting 
the figures, at least two Wall 
Street securities houses - Mer- 
rill Lynch and Montgomery - 
downgraded the issue. 

On the positive side, DSX-US 
Steel climbed $ 1 % to $m. The 
group bad released details of a 
strong second-quarter after the 
market dosed on Thursday. 

In the computer sector; 
Apple Computer followed 
IBM’s blockbuster results with 
an impressive second-quarter 
performance of its own. The 
stock jumped $2% to $30% after 
the company posted underly- 
ing earnings of 50 cents a 


share, against a consensus 
forecast of 35 cents. 

Though IBM, off $% at $61% 
was hurt by - profit-taking, 
many technology stocks 
showed improvement Storage 
Technology was marked up 
$1% to $37% after publishing 
better-than-expected results. 
However, Compaq Computer 
shed $% to $30%. 

On the Nasdaq, Microsoft 
climbed $3% to $50%, buoyed in 
part by encouraging remarks 
about the company’s growth 
prospects at an analysts' meet- 
ing in Chicago. 

Canada 


Toronto eased in quiet midday 
trading with little news expec- 
ted to jolt the market out of its 
summer doldrums and Mr Alan 
Greenspan's comments on his 
last day of congressional testi- 
mony having little impact. 

The TSE 300 was 2.70 lower 


at 4.169.90 in moderate volume 
of 14.85m shares. Declines out- 
paced advances 81 to 73, with 
104 stocks steady. 

Brazil 


Sao Paulo edged lower in light 
trade, dragged down by heavy 
selling of Eletrobras after 
reports that the state power 
utility was considering a huge 
share offering. 

The Bovespa index was 97 
lower at 40,068 at 13.00 local 
time in weak volume of 
RJ12im ($I29m). 

A news agency reported that 
the Eletrobras' board of direc- 
tors was p lanning a $300m sub- 
scription, equivalent to 15 per 
cent of the company capital, to 
be presented at a shareholders 
meeting next Friday. Eletro- 
bras preferred dropped 4.3 per 
cent to RI217.il while the com- 
mon stock fell 4.4 per cent to 


R$217. 


Paris suffers a setback late in the session 


FT-SE Actuaries. Share Indices 


•U 22 THE EUROPEAN SERIES 

Hnwty drages Open 1030 11 JO 12J0 13J» 14-00 ISJO Pose 

FT-SE Ewdom* 100 13ms 1381.00 138X65 138S66 1388.16 138081 138020 1387.40 

FT-SE EnnWCfc 200 141986 1419.17 142X23 1424.60 1424.76 1426.18 142320 142429 

JU 21 JU 20 JMl 10 JU IB JU 15 

FT-SE Bratm* 100 ! 371 54 1367.56 1381.71 1346.11 134X02 

FT-SE Emm** 200 140725 140X57 1 404.54 138127 138X0S 

Ba® iooo Cfi/taaa no ■ imw: an - imn umm* ioo - lsrase an - hi as? 


With the exception of Paris the 
markets were generally stron- 
ger yesterday. 

PARIS closed at the session 
low, with the fell occurtng late 
in the day, which also saw the 
end of the account The CAC-40 
index dipped 12.37 to 2.041.41. 
up 3.4 per cent on the week, 
having earlier reached a high 
of 2.074. 

UBS Global Research com- 
mented yesterday that after 
the good gains of the last two 
weeks, investors would have to 
decide, with the start of the 
new account, “whether to bay 
the market for fundamentals 
alter such a rapid correction, 
or to wait". They expected a 
period of relative stability, 
with the index hovering 
around the 2,000 to 2,050 level 

Sanofi, down FFrl at FFr975, 
attracted the attention of two 
brokers: Hoare Govett and 
Nikko Europe, both reaffirm- 
ing their buy ratings on the 
stock, and the latter expecting 
earnings growth of 17 per cent 
in 1994 and 21 par cent in 1995. 

FRANKFURT enjoyed a com- 
fortable end to the week, 
helped by some positive news 
from the corporate sector. 

The Dax index ended the offi- 
cial session 36.83 points ahead 


Lufthansa 


Share price (DM) 



at 2,150.13, for a week's gain of 
2.7 per cent In Ibis trade the 
market slipped back slightly, 
closing at 2,148.23. Turnover 
was DM7.5bn. 

The chemicals again did 
well with Bayer, for instance, 
up DM6.70 at DM362.70, up 6-7 
per cent over the week, and in 
Ibis trade added a further 
DM1.10. The company reported 
that it was on target for a rise 
in profits of between 15 to 20 
per cent for the year. 

Daimler was another solid 
gainer, up DM19 at DM772, a 
day's gain of 2.5 per cent and a 


week’s of 3.3 per cent. The 
stock was helped by positive 
comments from Mercedes. 

Lufthansa added DM5.60 to 
DM201.50, off a session high of 
DM204.50, as confidence in the 
airline was encouraged by a 
number of buy notes. Hoare 
Govett in one, argued that the 
group should see a return to 
profit in 1994, thereby vindicat- 
ing two years of aggressive 
cost-cutting. 

ZURICH extended its rally to 
a fourth day. mirroring the 
stronger dollar and still paying 
close attention to corporate 
reporters. The SMI index rose 
18.4 to 11597.8 for a 3.3 per cent 
advance over the week. 

Nestle, whose better than 
expected figures on Tuesday 
sparked the market’s improved 
sentiment, picked up SFr9 to 
SFrl,179 while Sulzer put on 


SFrl6 to SFrS21 on the view 
that Thursday’s news on 
coders during the first half of 
the year underlined the compa- 
ny's positive prospects. 

Roche’s recovery continued, 
the certificates rising another 
SFr60 to SFr5,520 while Ciba 
picked up SFr24 to SFr781. 

Insurers had a strong day, 
Winterthur registered rising 
SFrl8 to SFr698 and Zurich 
bearers advancing SFr23 to 

SPrl.350. 

MILAN tried to put political 
worries aside, concentrating 
instead on the improving eco- 
nomic outlook and the latest 
budget news. 

The Comit index rase 10.34 to 
730.45, for a 2.7 per cent rise 
over the week. Volume picked 
up as domestic funds resumed 
buying, but foreign investors 
remained wary. 


Fiat rose L192 or 2JS per cent 
to L7.051 as union leaders said 
that the group was cutting the 
number of planned lay-offs by 
the end of the year because of 
a pick-up in demand. 

Olivetti rose L64 car 25 per 
cent to L2£86 and BCI, encoun- 
tering renewed foreign buying, 
advanced L175 or 3.7 per cent 
to L4530. 

Ciga gained L31 to L1J12, as 
the Consob market regulator 
announced that ITT Sheraton, 
which holds 24 per cent of the 
hotel group, would have to 
make a public offer to buy 
more shares. 

AMSTERDAM resurfaced 
above the 400 level the Aex 
index adding 3.98 or I per cent 
to 403.02. However, trading was 
light ahead of the the weekend. 
The market rose 2 per cent 
across the week. 


Written and edtted by John Pitt 
and Mchael Morgan 


SOUTH AFRICA 

Industrials saw late interest to 
end higher. Gold shares were 
pressured by a weak bullion 
price. The overall fell 8 to 
5JS49, industrials added 10 to 
6,374 and gold lost 37 to 2,047. 


Scenarios for the final 
leg of the bull market 

Adrian Fitzgerald on strategic investment options 


U K-based pension fund 
managers had good 
reason to crow at the 
end of last year. Their interna- 
tional asset allocation resulted 
in a performance which was 
well ahead of the benchmark. 

WM Company figures show 
that the average return earned 
in overseas equities was 39.4 
per cent, compared with the 
return of 252 per cent Grom the 
FT-A World ex-UK Underexpo- 
sure to the US and overweight 
positions in continental Europe 
were mainly responsible. More- 
than-double weightings in the 
smaller Pacific Basin markets 
provided the icing on the cake. 

Claims at the mid-year stage 
this year will be more muted. 
It is likely that overseas equity 
portfolios are already trailing 
the FT-A benchmark by 5 or 6 
percentage points. The big 
swing factor has been Japan. 

The sterling return for the 
world ex-UK over the first six 
months of the year was L7 per 
cent. However, this conceals 
the feet that nearly all equity 
markets performed badly. Take 
Japan out of the index and the 
return fells to -7.9 per cent 
The problem for most UK- 
based pension fund managers 
is that they were very under- 
exposed to Japan at the start of 
the year. Worse still their rela- 
tively heavy weightings in the 
rest of the Pacific Basin will 
have back-fired on them. Hong 
Kong and Malaysia, for exam- 
pie. returned -292 per cent and 
-24.1 per cent respectively. 

It is a time for a serious stra- 
tegic re-think. Most equity 
markets have been driven 
down this year as a result of 
the collapse in bond markets 
triggered by the turn in US 
interest rates and mounting 
inflation concerns. It is under- 
standable that the US bond 
market should be the first to 
suffer significantly given that 
Ihe economy is more advanced 
than most in terms of the cur- 
rent cycle. 

It is also inevitable that a 
collapse in confidence in that 
market should have a knock-on 
effect around the world. But 
quite why the knock-on effect 
in the UK has been so severe is 
puzzling many economists and 
strategists. Long gilt yields 
have risen by more than. 2 per- 


centage points at a time when, 
if any thin g, consensus infla- 
tion forecasts are still edging 
down. And what UK managers 
have to consider is whether 
this presents them with a good 
opportunity partially to rebuild 
some domestic bond exposure 
or whether the finan cial mar- 
kets are signalling that bad 
news is just around the corner. 

Certainly, the significance of 
this year's collapse in UK 
bonds should not be under-esti- 


undoubtedly needed if US equi- 
ties are to make renewed head- 
way. The pre-requisites for 
that to occur are a stabilisation 
' of the dollar and further re-as- 
surance that the strong econ- 
omy does not present a signifi- 
cant threat to infla tion. 

If, and when, that scenario 
unfolds, equity investors will 
be able to sit back and enjoy 
what may be the final leg of 
the cyclical bull market Our 
projections for markets else- 


mated. The real, total 

return 

where suggest that UK pension 

FT-A WORLD INDEX TOTAL RETURNS 


DoBar Investor 

Storting Investor 


1993 

1994 

1993 

1994 


Year 

HI 

Year 

HI 

UK 

23-8 

-a.a 

26.7 

-12.4 

US 

9-6 

- 3.2 

12.6 

-7J2 

Japan 

25.0 

30.8 

27.9 

25J 

Europe ex UK 

32.5 

D.7 

365 

-3L5 

Pacific ax Japan 

89.9 

-15.7 

94.4 

-19^ 

World ex Japan 

21.7 

-4.4 

24.6 

-64 

World 

22.6 

4.6 

25.4 

0^ 


from long bonds up to the end 
of last year averaged a remark- 
able 7.5 per cent a year. And 
despite a return of -15.9 per 
cent in the first six months of 
1994, long bonds have outper- 
formed equities so Car in the 
1990s. 

These are powerful statistics 
to consider at a time when 
anomalous opportunities in the 
UK bond market may be on 
offer. However, this is not to 
advocate a wholesale switch 
from equities to bonds, merely 
to suggest that it is an ideal 
time to reflect on portfolio effi- 
ciency. Indeed, our own analy- 
sis suggests that a significant 
recovery in bond markets 
world-wide would spark off a 
geared recovery in equity mar- 
kets. And as far as equity 
investment is concerned, the 
secret will be to identify which 
markets will benefit from a 
combination of firm bond mar- 
kets and good news on the eco- 
nomic growth front 

That potential certainly 
exists in the UK News on both 
the inflation and growth front 
continues to better expecta- 
tions. Solid growth in corpo- 
rate earnings and dividends 
will be achieved this year and 
next. Moreover, institutional 
liquidity is very healthy. A 
recovery in the bond market is 


fund managers are highly 
unlikely to make up lost 
ground against the interna- 
tional benchmark in the sec- 
ond half of the year. 

Despite the good run in the 
first half, it is too early to be 
taking profits in Japan. 

Equally, we would argue 
that the pension funds' over- 
weight exposure to continental 
Europe could prove to be a 
drag on performance in the 
medium term. Ratings in many 
markets are already discount- 
ing a sharp rebound in earn- 
ings and there is a risk that 
investors will grow increas- 
ingly impatient. 

Of course, we could have it 
completely wrong. Perhaps 
bond markets are correctly 
anticipating an inflation resur- 
gence. And perhaps there is a 
danger that corrective proce- 
dures will choke off the recov- 
ery. In which case, all equity 
markets would still be vulnera- 
ble. 

We think it unlikely. The 
fundamentals all point to fur- 
ther economic recovery world- 
wide against a background of 
continued, low inflation. There 
is every reason to remain fully 
invested. 

Adrian Fitzgerald is director of 
equity research at Nat West 
Snairitfes, Edinburgh 


ASIA PACIFIC 


Blue chip weakness affects Nikkei 


257m. 


Volume total 
against 
of all first 
14.12 to 1,637 
kei 300 lost 
to 296.53. 

741 to 
re 

In 

index 



Tokyo 

Selling or blue chip shares by 
corporate and overseas inves- 
tors pushed prices lower, 
the Nikkei index lost groi 
spite of buying by indh 
investors, writes Braiko 
corn in Tokyo. 

The Nikkei 225 indc 
160.03 to 20,462.89 after 
of 20,673.53 in early trad 
a low of 20.42729 in 

noon. The index fell; 
cent on the week. 

The slight reboi 
dollar against the 
share prices in 
but afternoon pr 
arbitrage selling 
index. 


the 
helped 
)uoming. 
f Jting and 
fessed the 


Sm shares 
Topix index 
n stocks fell 
■hile the Nik- 
. ur 1 per cent 
'< led gainers by 
ith 186 issues 
Whanged, 
the ISE/Nikkei 50 
to 1.325.97. 

High^s L .)inology issues 
whic&hjbe gained on the mul- 
ti-luetic''-, n d telecommunica- 
tions Am, i H * fell. NEC fell Y10 


tnYlMO and Fujitsu declined 
*0 to Y1.050 while heavy elec- 
cals such as Hitachi lost Y10 
Y 1.000. 

Profit-taking hit large capital 
steels and shipbuilders. Nippon 
Steel fell YI to Y339 and Mitsu- 
bishi Heavy Industries 
declined Y9 to Y784. 

Speculative issues were 
picked up by individual inves- 
tors. Tomoegawa Paper, which 
rose by its daily limit, climbed 
Y69 to Y635 and Kiyo Bank 
rose Y7 to Y941 on rumours 
that a speculator was buying 
up the bank's shares. 

In Osaka, the OSE average 
fell 16520 to 22,91928 in vol- 
um e of 33.2m shares. 

Roundup 

Taipei lost most of its gains, 
Manila was strong and other 
markets drifted. 

TAIPEI encountered heavy 
selling following Thursday's 
impressive rise. The weighted 
index slid 8L10 to 6,496.60 as 
turnover rose to T$126.17bn 
from Thursday’s T$91.53bn, 
The market gained L4 per cent 
over the week. 

Financial sector stocks took 
the biggest losses: ICBC down 


TS4.50 to T$88.50 and China 
Trust down T$4 to T$79. Plas- 
tics also fell heavily: Taiwan 
Polypropylene, Grand Petro- 
chemical and USI Far East aH 
falling by the daily 7 per cent 
limit to T$68.50. T$52 and 
T$47.50, respectively. 

MANILA recorded its biggest 
one day rise in seven weeks 
assisted by strong demand for 
Petron’s initial public offering. 

The composite index closed 
up 59.46 at 2,708.00. for a 
week’s rise of nearly 4 per 
cent. Turnover advanced 
strongly to 1.44bn pesos. 

HONG KONG was pushed 
higher by a round of late bar- 
gain hunting. The Hang Seng 
index advanced 35.33 to 
9,152.99, up 0.4 per cent over 
the week. 

Turnover was HK$2.55bn 
from Thursday’s HK$325bn. 

Brokers noted that 
short-term positions had been 
taken on selected blue chips 
such as Jardiue Matheson, up 
HK$1 to HKS62.75. There was 
also interest in defensive sec- 
tors such as utilities, with its 
sub-index outperforming the 
overall market, rising 0.8 per 
cent to 10,552. HK Electric rose 
45 cents to HK$23.45 and HK 


Telecom added 15 cents to 
HK$15. 

The hanking sector was the 
only loser as investors 
remained unnerved by worse 
than expected interim results 
from Bank of East Asia, which 
slid 60 cents to HK$3L70. 

SYDNEY rose slightly in sub- 
dued trade, and the All Ordi- 
naries index put on 3.3 to 
2,052.6, barely changed over 
the week. 

Turnover was A$368.7m. 

Independent Holdings added 
41 cents to AJ4.81 after Davids 
lifted its takeover offer for the 
grocer by 55 cents to A$4J30. 
IHL recommended sharehold- 
ers to accept the new bid. 

Foodland. which holds an 18 
per cent stake in Independent, 
fell 5 cents to AS4.85. 

Meanwhile, Coles Myer and 
Rank Commercial said that 
they would drop their bid for 
Foodland if their application 
for leave to appeal an injunc- 
tion stalling the offer failed 

Coles Myer lost 1 cent to 
A8429. 

SEOUL rebounded from 
recent weakness and the com- 
posite index added 3.74 to 
939.09, off 1 per cent across the 
week. 


iS^ WORLD INDICES 


rty jjjfnptoa oy Ttw FTnandd Times Lid, Goldman. Sachs A Co. and NatWest 

AN ° _ THURSDAY JULY 21 IBM 

US Day's Pound Local 

DeUa Chang* Sttrifte Yen DM Currency 
index % Index Index Index Index 


markets 

win p. H rn(h>rM>0 
i oi imro 


Securities Ltd. In conjunction with the Institute of Actuaries end the Faculty at Actuaries 

WEDNESDAY JULY 2D 1994 DOLLAR INDEX 

Local Gross US Pound Local Year 

ft chg ftv. Dollar Sterling Yen DM Currency 52 week 52 week ago 
on day YMd Index Index Index Index Index Ugh Low (approx) 


atoicHi 

w h > • 

up' ,:•.*! . 

dn (iti'i 

W ..Ml - 

* *'• 

Inv ifW 

|K ,f*1«W’» • •• • 

.»•» 

rot 

•. .4« t* 

- u i#4 — 

... . . .... 
•il.tndt-7) ... - 



<* l. . v 

i.sxt* 1441 

■ Alnc.l |WI 

» »»-'» 

l.-n .3M - 

nl.ind |47l.. 

a Ku^aom <£M 

,$10) .... 


... t72 00 
... 166.93 

.17O.0S 

. ...127/48 
... 270.83 

158.24 

175.34 

. ... 14249 

....... 37tX91 

.. ..19115 
..... 88.27 

168 as 

,...470.01 

. 1871.27 

20885 

.. ..6167 
... 208.84 

044.05 

.288.55 

HI .47 
.....214.82 
.. 15842 
... . 193.91 
.... 184 78 


-1.7 

-0.7 

-0.5 

- 0.1 

-0.5 

-oa 

-0.3 

- 1.6 

- 0.6 

-1.4 

0.3 

-08 

- 1.1 

- 1.6 

-OlS 

-0.8 

0.4 

-0.7 

-08 

-0.0 

-08 

0.0 

-02 

02 


16585 

18055 

164.75 
122.93 
201.15 
152. 59 
169.07 
137.40 
35787 
19284 

85.12 

160.89 

45023 

1804.41 

199.46 

66.M 

19026 

331.76 
27632 
13641 
207.14 
152.7S 
19688 
178.18 


10789 
11880 
106 58 
79.52 
16694 
9671 
10988 
8888 
231.38 
124.23 
55.08 
104.08 
29380 
1167 30 
1 29.03 
4284 
128.90 
214.62 
17675 
8625 
134.00 
9882 
12086 
11585 


14093 

163.16 

13988 

104.45 

221.SO 

12988 

143.68 

116.74 

303-91 

163.18 

7283 

13671 

385.11 

1633-20 

169.48 

5627 

16981 

281-00 

234.79 

115.91 

17601 

12980 

15688 

15188 


15588 

153.18 

13661 

127.22 

22600 

173.42 

14659 

11674 

36787 

184.85 

103.67 

104.08 

409.02 

6862.97 

16693 

60.36 

193.05 

239.44 

284.04 

13632 

247.39 

T30.72 

19698 

184.76 


-18 

60 

0.0 

-08 

0.1 

04 

0.4 

- 1.0 

- 0.6 

-08 

1.1 

-08 

- 1.2 

-18 

0.5 

-18 

1.1 

-as 

-0.5 

0.1 

-o.i 

08 

as 

08 


384 

1.04 

4.05 
286 
1.30 
081 
286 
1.77 
322 
380 
1.46 
0.74 
1.74 
182 
640 
3.96 
1.71 
1.76 
283 
4.14 
162 
186 
4.04 
2 90 


17483 

18617 

171.67 

12787 

27288 

158.70 

17584 

144.85 

37611 

201.90 

88.01 

18614 

47585 

1901.74 

20784 

6985 

205.83 

346.56 

28692 

14287 

21584 

15642 

19484 

184.35 


167.44 
18611 
16481 
122.10 
260.61 
15180 
16631 
13 a 64 
357.13 
183-28 
8484 
160-94 
454.99 
182086 
19886 
6688 

197.01 
331.72 
27654 
13618 
20611 
151.64 

166.01 
17645 


10981 
117.47 
107.17 
79.64 
IGA 98 
99-07 
10177 
90.43 
232.02 
12604 
6484 
104.97 
2B6.76 
118781 
12638 
4383 
12649 
21685 
10037 
8682 
134 43 
anon 

12182 

11609 


14044 

15382 

13678 

106B7 

221.70 

12982 

143.18 

117.84 
303.81 
104.40 

7186 

13691 

387.07 

154648 

16675 

5638 

16780 

28280 

23585 

115.85 
17634 
12980 
15824 
150.11 


15601 

153.12 

13661 

127.62 

227.75 

172.78 

14788 

11784 

37004 

18587 

10284 

10487 

47481 

707781 

16619 

81.10 

19184 

24185 

285.44 

139.15 

24785 

13004 

18601 

18485 


189.15 

19581 

17667 

14581 

27670 

19980 

185.37 

14787 

50686 

20933 

97.70 

170.10 

62183 

2847.06 

207.40 

7789 

20785 

37692 

282.64 

15579 

23185 

17656 

214.06 

19604 


13656 

1566B 

143.62 

12084 

207.56 

9642 

15082 

11669 

271.42 

15780 

6788 

12484 

34382 

151657 

16639 

52.24 

15674 

250.05 

17583 

11633 

16675 

124.48 

17286 

17696 


140.69 

156*17 

15089 

124.14 

214.40 

9988 

15082 

11681 

274.33 

161.47 


14987 

34382 

1639.10 

16589 

52.79 

16691 

252.79 

20580 

120J1 

17651 

124.46 

17153 

16605 


PE »7J0) - 

(1 161 

049*17491 

>oaiic 11J60) 

Amujitcj (626) — 
UKt5t«s}-.- 
E<. Jnpon £90)- 
ttx US (1652) — 
§x UK 119671- - - 
Ev So AT. pi 12) 
Ev Japan (1702) 


..17080 
..81125 
... 174.02 
...172 33 
...181.21 
... 153 73 
. -24638 
...173.13 
17422 
...17589 
.182.14 


-0.4 

-08 

-08 

-08 

02 

-05 

-18 

- 0.6 

-04 

-0.3 

- 0.1 


16484 

705.(53 

187.80 

168.16 

174.73 

14624 

237.58 

18694 

16600 

169.03 

17660 


10625 

13382 

100.55 

107.50 

113.04 

95.90 

153.89 

10600 

10668 

109.34 

11484 


13065 
174.72 
142.56 
1J1 80 
148-47 
125.96 
201-88 
141.85 
142.75 
143.82 
150.05 


154.08 

209.43 

113.67 

12987 

180.80 

134.23 

220.58 

13386 

145.51 

14626 

17581 


0.3 

ai 

-o.e 

-0.4 

08 

ai 

-18 

-0.4 

-0.3 

-02 

0.1 


3.01 

1.42 

1.05 
T87 
2.69 
2.41 
289 
1.89 

2.05 
224 
282 


171.01 

21384 

175.44 

17345 

180.83 

15483 

248.95 

17485 

17485 

175.89 

18342 


16389 

204.68 

18782 

16601 

173.06 

147.90 

23889 

16678 

167.38 

16635 

17557 


10676 

13349 

10952 

10628 

11389 

96.47 

15641 

108.78 

109.16 

10680 

11451 


139.25 

174.12 

142.85 

14189 

14784 

12552 

202.71 

14159 

14257 

14352 

14955 


15388 
20617 
114.67 
130.40 
10a 45 
13408 
222.87 
13362 
145.90 
14864 
17605 


17658 

22050 

17688 

17389 

192.73 

157.47 

29621 

174.78 

17650 

17656 

19520 


14332 

16069 

134.79 

14388 

17667 

12549 

18692 

14658 

15556 

15854 

16651 


14395 

16354 

15341 

14636 

179.40 

12639 

187.4® 

14953 

15671 

15952 

18755 


- "Ire. re. ..UT 144.1 . lew ^ »» 13UB la °-‘ B 


rt. Tile TuwrcW TVra Landed, WWWA. Socte and Co. and *UWe> SecurtttoB LMfaftxL 
ixMttk ter Bta Brigan man* doeed 21/7W 


1887 


LONDON EQUITIES 


L1FFE EQUITY OPTIONS 




— 

cant 

— . 

— 

■Pul* 

— 

Open 


JU 

Oct 

Jaa 

Jd 

Oct 

.am 

Med-Lym 

540 

45 

59 

- 

1 

8 

- 

CS81 ) 

589 

4* 

27* 

- 

12* 

27* 

- 


260 

11 

21* 

27* 

1 

12 

17 

r»8 ) 

280 

1* 

12 

17* 

14 

23* 

27* 

ASOA 

50 

8 

9* 

11* 

1 

3 

4 

rsr 1 

60 

1 

4* 

5 

4* 

8 

fl 

BmMmajo 

420 

16 

36 

44* 

2* 

18 

25 

1*435 ) 

460 

1* 

16* 

28 

Z7 

38 

48- 

SaHBdn/t 

300 

28 

30 

47* 

1* 

14* 

2T 

r«*) 

420 

5* 

22 

31 

0* 

27 

35 

Boob 

500 

29* 

46 

53* 

V 

12 

19 

rsat) 

550 

1* 

16 

27* 

26 

35* 

48 

BP 

390 

25 

37 

44* 

1 

10* 

16 

(-412) 

420 

3* 

19*: 

28* 

12 

24* : 

29* 

an* Steal 

160 

4* 

12 

U 

3 

9 

13* 

Ci6t ) 

180 

1 

6 

9* 

20 

22 *: 

25* 

Bass 

550 

11* : 

34* 

44 

5 

20*: 

35* 

raei 

BOO 

1 

13* 

22 

48* 

51* 

68 

Cassinis 

425 

12* 


_ 

4* 


_ 

T432 ) 

450 

2* 

- 

- 

22* 

- 

- 

Qourtadds 

500 

32* 

50 

SB 

1 

12E 

21 

fS29> 

550 

2 

22 : 

31* 

24 

38*. 

15* 

Dm into 

500 

44 . 

®* 

81 

1 

11* 

17 

rwo) 

550 

4 

w 

32 

15 

35 : 

38* 

IQ 

800 

48* ! 

58* 

76 

2 

24*: 

31* 

(*836) 

850 

4* 

31 i 

49* 

18* 

45 ! 

57* 

nngflstw 

500 

14 

35 

48 

5 : 

25* 30* 

rsra 1 

550 

1 ■ 

14*29* 

44* 

56 

60 

Land Saar 

(SO 

25 

44 

S3 

1* 

13* 

21 

1*672 ) 

700 

1* 

18 

27 

31 

38 47* 

Malta 4 S 

420 

9* 26* 34* 

2* 

13* ' 

19* 

1*428 ) 

460 

1 

9 

17 

33* 

37* 

42 

HaWes 

400 

8* 

26 

37 

8* : 

25* 20* 

T463 J 

500 

1 

11 ao* ; 

39* ! 

52* 

54 

Stenduy 

300 

IBM 

35 

42 

3 

15 

22 

1*404 ) 

420 

2 1S*2S* 

19 : 

30* 

37 

Sx* Trane. 

700 

48* 

57 85* 

1 ■ 

12* 17* 

r742 ) 

750 

4* 25* 38* 

12* 

35 40* 

Starehoues 

200 

IB* 25* 30* 

1 

5 

9 

r217) 

220 

313*18* 

6 

13* 17* 

Tfafcigar 

79 

4* 

_ 

- 

1* 

_ 


1*82 ) 

88 

1* 

- 

- 

8 

— 

- 

IMSHT 

low : 

23* 

55 

Tl 

4* 

24 35* 

rune 

1090 

2 28* 

46 

39 

51 60* 

Zeneca 

700! 

52* 83* 77* 

1 

14 22* 

r749 ) 

750 

B 

32 47* 

8* 34* 44* 

OpBan 

Aug 1 

«g* 1 

FUl , 

Aug 

No* 1 

Fab 

fimnd Met 

420 ■ 

12*30* 

37 ■ 

11* 

23 30* 

r«o i 

460 

2 

14 20* 42* 48* 55* 

UKfflroke 

160 

17 

S 

30 

2 

B 9* 

(174 ) 

180 

4* 13*20* 

0* 18*20* 

utd Stecdts 

300 : 

Z1H 

31 38* 

3 

13 

18 

P316 1 

330 

5* 

16 22* 17* 20* 32* 

Opdofl 


SBp Dec 1 

tor : 

Sep 1 

Dec 1 

4ar 

Raoas 

140 ID* 

15 17* 

BM 

14 18* 

H40) 

180 

4 

716* 

23 

28 29* 

Optkm 


NOD 1 

to* 1 

Feb , 

tug 1 

Nn FA 


Brit Aon 300 22 4B B3M 12 3ZH43M 
(■M2 > 660 4 28V* «2 43 KM 71 h 

BAT BUS 420 131* 27 38V* 14 25 30 

(-424) 480 312*221*48*5358 

BTR 380 18 28*37* 3 13* 17 

(*SB) 300 * « 22*17* 29*32* 

M Tctacon 380 3 17 23* 16 2Z 30* 

r391 ) 420 1* 8 14 44 45 51 

CBmujSdl 420 18 31 <2 4H 18V* 19* 

C433 ) 480 2 19* 2* 30* 40* 42* 

BrsSon Bee 650 18* 48* 88 15 34 44 

r®2 ) 700 3* 28* 38 51 63* 72* 

Ainmss 42) 28* 38 48* 2* 12* 16 

T443J 400 4* 17 27 20* 32 38 

CEC 28)10* » 25* 4 12 IS 

(*284 ] 300 2* 12* 17* 18 22* 28 


cak Mt 


Option 


Aug 

NO* 

ra> 

Am 

NO* 

Fee 

Hanson 

280 

7 

15* 

19* 

5* 

14 

17 

r26i i 

280 

1* 

7* 

11* 

20 

28* 

29* 

Lasmo 

134 

11* 

16 

— 

2 

8 

— 

(*143) 

154 

1 

9 

- 

13* 

IB* 

- 

Lucas kids 180 

21 

27* 

28* 

1* 

8 

11 

(-197) 

a» 

8* 

IS 

18* 

7* 

18 

21 

PiO 

650 

42 

5B% 

72* 

5M 

28 

36 

r*83) 

700 

10 

31* 

47* 

27* 

55* 

B3 

PMtgsin 

180 

13 

21 

24 

3 

8* 

12 

(189) 

200 

3 

11 

14* 

14 

19* 

23 

PrudantM 

300 

24 

31 

37* 

2 

11 

14 

(-320) 

330 

5* 

14* 

22 

15 

2E 

29 

KI2 

850 

28* 

54* 

73 

14* 

41* 

49 

(-858 ) 

900 

7 

32 

43% 

49 

69 

78 

BmSmt) 

500 

33 

48 

58% 

4* 

21 

27* 

(-526 ) 

550 

5* 

22* 

34* 

29* 

49* 

56 

nval (race 260 

11 

22 

28 

6* 

19 

21 

ra=) 

280 

4* 

13* 

19 

21 

31 

32 

Testa 

240 

7 

17 

22* 

7 

16 

19 

(*240 ) 

260 

2 

BM 

14 

22* 

28* 

31 

Vtx&foro 

1B3 

13* 

21* 

24* 

2M 

7* 

11 

(192 ) 

200 

3 

12 

IS* 

10* 

16 

19* 

weans 

354 

IB* 

26* 

— 

4* 

15 

- 

r*5j 

384 

3* 

12 

- 

22* 

32 

- 

open 


Jut 

Oct 

Jan 

M 

Oct 

Jan 

BAA 

950 

33* 

65 

78 

2* 

24 

34 

(■977 ) 

IOOO 

4 

30 

51* 

26 

40 

57* 

Thanes Ufr 

460 : 

JB* 

« : 

53* 

1 

8 

IB 

r«u 

500 

5 

23 : 

29* 

12 ; 

24* 

34 

Option 


Sen 

Dae 

Mar 

Sep 

Dec 

Mar 

Abbey Had 

300 

28 

37 

49 

to* 

is : 

24* 

(*407 1 

420 

12 

22 

34 

26 

32 

41 

Aawtad 

30 

4 

8 

8* 

3* 

4* 

6 

(*30 ) 

35 

2 

3* 

4* 

6* 

B 

9 

BarOajB 

500 

521 

53* 

72 

8* 

14*: 

23* 

f545j 

550 • 

19*: 

34M< 

14* 

29 : 

36*47* 

Blue Qrda 

300 

30 

38 

46 

8* ■ 

13* • 

(6* 

1-321 I 

330 

13 22* 

30 : 

24*28*: 

JIM 

BnMi Gas 

280 

14 

18 22* 

11* 

19 

21 

C2B0) 

300 

B 

10 

14 

24 : 

32*: 

34* 

Dteons 

180 

18 

23 26* 

10* • 

13* 

17 

HS4) 

200 

7 ■ 

14* 

18 : 

21* 

25 

28 

UBdOMI 

160 

12 16*20* 

6* 

9* : 

llh 

(I® ) 

180 

4* 

7* 

12 ; 

20* 23* 

14 

Lnrnbo 

120 12* 18* 

20 

5* 

8* 

12 

<1») 

130 

7 

12 • 

15* 

10* ■ 

13* 

17 

Nad Power 

420 38* 48* 

58 

10 : 

16* 20* 

pws 1 

460 16* 28* 34* 

27 35*30* 

Scot Aner 

380 

36 41* 

47 ' 

10* 

14 IB* 

raai 

390 18% 

28 

31 

24 

28 

33 

Sean 

110 13* 

18 

18 

2* 

4* 

6 

ni0 1 

1») 

fl* 

0* 12* 

6* 

0 

11 

Forte 

220 15*20*25* 

9 14* 17* 

1-224 } 

240 

7 

12 18* 

21 

27 

29 

Tanoac 

140 

24 

26 

30 

3* 

7 

9* 

ns6) 

180 

11 14* 18* 11* 15* 

19 


Thom EH 1050 43* 70* 86 44 59* 74* 

(■1077) 1100 23* 80 65* 74* 88 103 

188 ZOO 12* 17* 22* 10* 14* 18 

1*204 ) 220 5 W* 13* 24* 27* 30* 

Tontkha 220 17 23* 27* 8 12 15* 
P23Z ) 240 8* 14* IB 18* 23* Z7 

WefcnaB GOO 53 71 85* 19 31* 41 

re32 ) 850 Z7 46* 60* 45* 57* 65* 

Option JW Oct Jan Jd Od Jan 

Odd 550 31* 50 BO* 3 30* 38* 
(*578 ) EDO 2*20*38* 27* 59* 87* 
KSBCTSpOe 700 48* 81* 108 3 33* 47* 

(-744 j 750 13 55 78* 17 58 73 

Renters 482 II 31 - 5* 23* - 

P4C8 ) 47S 5* 2S* - 12* 23* - 

Oman flog Wn Fat Xog Nw Feb 

RDfc-ftyn ISO 14* 21 28* 2* 9 12* 
nsc ) 200 3* 12* 17 12* 2P 23 

■ UMatytag seamy pw*. Pnawre ahmi are 
baaed on ctosotg after ortoa. 

Jti/ 23 Total canBocts; 4M78 Cats: (3.SS1 Put* 
17.888 


Ift gold mines index 




JM « dig 

JM JM Yew 

tom* (to 

B weak 


V 00 Of 

2 D IB ago 

T«d % 

Mg* Low 

Sou Haes torn (36) 

195485 -09 

197151 muainoc 

2.18 

2367 JO 182066 

■ ffegbul Indices 
AMcafl© 

2905-84 -1.2 

29CJ7 291034 2044JB 

Asa 

344080 180223 

hBMadan 

2SUJ6 -13 

260034 256634 237521 

ISO. 

301089 1B93.1B 

None Arnica (12) 

1584.09 -06 

158196 1578JJ5 162088 

am 

203065 138380 


Copplglx, Th« FlnendU Time* LlnVwd 1004. 

Rgieaa H hreouw Aw nuntter el C* *p*imL Bade LtS Dolors. Bant Values: IflOOJW 31/12(02. 
Pndecauar Gold Minee Incknc Jdy 22: 228.7: dayeOtenge: -2S pens; v wage: 3164 
Lams Prices lesni unamUrii tar Ws eadan. 


RISES AND FALLS 

— — • On Fri d ay — On tho weak 



Rises 

FaOs 

Same 

Rises 

Fab 

Same 

British Finds 

4 

62 

5 

85 

232 

42 

Other Fixed tesereai 

0 

0 

15 

5 

12 

58 

Mineral Extraction 

82 

36 

82 

381 

237 

382 

General Manufacturers 

IBS 

73 

379 

833 

484 

1.937 

Consumer Goods 

48 

34 

10B 

240 

176 

534 

Sendees 

127 

48 

329 

550 

355 

1.606 

Utilities 

33 

4 

8 

143 

35 

47 

FtnancJate 

121 

53 

195 

584 

338 

925 

Investment Trusts 

191 

16 

259 

758 

171 

1.401 

Others 

70 

27 

32 

302 

173 

193 

Totals 

874 

353 

W12 

3.880 

2.211 

7.125 


Dan. bend an rime ocmpanbm Wad an U» London 9ns Sava. 

TRADITIONAL OPTIONS 

Cak: Division Group. Etdoe, Johnson Fty. Norbak, Romeo. 


LONDON RECENT ISSUES: EQUITIES 


feats Amt MM. Close 


price paid 

P UP 

cap 

(Em.) 

1994 

ttflh Low Stock 

price 

P 

♦/- 

Mel 

On. 

Dm. 

COV. 

Grt 

WE 

net 

100 

FP. 

32.7 IC6I2 

90*2 Ba*e Gtfrd Shn C 

I05>z 



_ 

- 

_ 

§40 

FJ>. 

120 

45 

33 'pftocure 

33 

-1 

- 

. 

- 

_ 

150 

FP. 

170 

191 

158 CPL Aromas 

161 


LN3.0 

2.4 

23 

T5.4 

18 

F.P. 

5.18 

31 

21 Condi 

28 

-2 

- 

re 


- 

220 

F.P. 

1103 

225 

220 EurodoUnr 

225 

4l 

WN&S 

29 

4.? 

17.6 

175 

FJ>. 

247.6 

203 

198 bco A/L 

201 


Lfl.4 

22 

b* 

129 

- 

F.P. 

- 

35* 

3lHj Five Arrows Wts 

33 

* 

- 

- 


- 

- 

F.P. 

530 

258 

238 Ideal Hardware 

253 


Na4 

U 

42 

129 

- 

FP. 

- 

77 

63 JF R Japan Wrts 

70 


- 

_ 

- 


3 

F P. 

1.73 

3* 

3 John Mansfield 

3*4 


- 

re 


- 

100 

F.P. 

68.8 

98 

94 CM Mutual SA 

96 


_ 

_ 


_ 

- 

FJ>. 

6.16 

45 

43 Do Wwrarta 

44 


- 

_ 

_ 

re 

23 

F.P. 

10.G 

31 

29 Ortas 

29 


. 

_ 

_ 

_ 

- 

F.P. 

118.1 

96 

91 Schroder Japan G 

94 

+*2 

- 

_ 


_ 

- 

FP. 

iao 

48 

42 DD Warrants 

48 


_ 

_ 

* 

_ 


F.P 

44£ 

92 

B8'j Scudder Latin 

09 


_ 

. 

re 

_ 

- 

F.P. 

80S 

44 

42 Do WWs 

43 


_ 

_ 


_ 

100 

F.P. 

240 

99 

98 Stwes HY So* C 

99 


_ 

_ 

re 

. 

- 

FP. 

1.13 

14 

11 Sth Country Hre 

14 



_ 

re 

_ 

100 

FP. 

302 

97 

07 TO Euro Gtti ptg 

07 


_ 


re 

_ 

- 

FP. 

- 

14 

(Ms TR Prop Wrts 

11>2 


_ 


re 

. 

272 

FP. 1.691.6 

295 

280 a 

291 


N&54 

1-1 

2.0 

33.0 

- 

F.P. 

2.72 

35 

29 Tope Eds WHs 

34 


- 

_ 


re 

- 

FP. 

22 M 

104 

66 UntvHsal Ceramic 

104 

+2 

Utt.75 

1.9 

4 S 

14.5 

- 

FP. 

56.0 

49 

34 VldeoLogtc 

41 *31? 

_ 




140 

FP. 

64.0 

109 

148 Yores Bros Wine 

IBS 


13.0 

27 

22 

204 


RIGHTS OFFERS 


Issue 

Price 

P 

Amxn 

peid 

up 

Latest 

Renun. 

dale 

1984 

High Low 

Stock 

Ctosteg 

price 

P 

*ot- 

47 

M 

19/B 

6pm 

3ljpm 

•jAmtwtev 



410 

N1 

TB/B 

54pm 

39pm 

Cater Alen 


S 

“ 

M 

13/5 

125pm 

61pm 

Charter • 

121pm 


40 

M 

25/8 

5pm 

2pm 

EiKaHtw 


Ai 

120 

m 

1/0 

25pm 

18pm 

FineUst 



13 

NS 

22/8 

l-kpm 

1 , 4pm 

Greycoat 

iHipm 


24 

M 

25/7 

3pm 

2pm 

H dene 



70 

M 

18/5 

IJpm 

2pm 

■Koamonai & Brchtt 





3/5 

%pm 

4jpm 

ParamouTt 



15 

NB 

25/7 

7pm 

Ivpm 

OuBgott) 



130 

M 

14/7 

26pm 

Spm 

Ricardo 



73 

Ni 

5/a 

3pm 

■upm 

Wares City of Lon 

, *pm 





**t 2 a July 21 duty ao Juty 18 Ariy is Yr ago Tjjg h -Low 

OnBnvy Share 24260 E402J 2391.6 Z404J 2405.3 2234.6 27134 22406 

Old. tfv. yield 4.15 4.V8 4.19 4.18 4.18 4.13 4^fi laa 

Earn. yk± ft fuU 5.58 5.62 5.64 5.62 5.82 4.92 5JS 

P/E rado net 19.11 1696 1690 1698 18.96 26.D4 

P/E ratio n« 1687 1671 1665 19.73 19.71 24.06 30-80 rent 

Tor 1094. OrtPMiy Store Matt Cinea cexnplatlorc Nph 27118 2ABVW; low C&4 XKUD 

FT Oxllnary 3m Mr base date 1/7/36 -ww 


Onttnary Share hourty changes 

Open 600 1600 11.00 12j» 13J0 1400 1600 1600 Hoh 
2417.6 2411 JB 2420.9 24299 2427.3 2429.1 2429.3 2427.7 3 


Juty 2 a July 21 Jdy 20 jyjy ig 


SEAO hargans 

26.755 23.518 

25.262 

26,669 

20627 

tt206 

21673 

4107 

Equrtv turnover (Em)t 

- 12500 

15707 

1574.1 

Equty tjatgalnaT 

- 25.306 

30,169 

31.944 

Sh*« M(M(n4t 

455.4 

568.9 

6102 

T E«*»fing Wra-mrirt business and omrmb tunover. 


Law 

2411 J 

.^aao_ 

24094 
12264 
26933 
474 jb 


I 







20 


LONDON SHARE SERVICE 


FINANCIAL TIMES WEEKEND JULY 23/IULY 24 1994 


BANKS 


AtC AS 

AflGtoHMK_4&c 

Afflfuy 

Banco 81 VUPta 

BtattSartPia. __ 

Bkirtwii— .40 

*ZSS“-* 2 

fepi 

Badara— ,*ic 

MtaitaiY___T 
DeurenaDU. 

EsprtoSwia _ 

RsteRn JC 

WccOfPt 

TWO* ft 


CHEMICALS 


ELECTRONIC & ELECTRICAL EQPT - Cont EXTRACTIVE INDUSTRIES 



YU 

STs RE 
5-3 « AGASKr. 

44 £9.4 AtaoR 

-1-3 13.7 AHwCutaCj IO 

•a aa Mk 

7J 10J BASFC 


HEALTH CARE -Cent 


INVESTMENT TRUSTS - Coot 


i*4 m 
In Caen 
:: 567J 

vsSh &sia 

231 7344 

735* 755 70S 384 

” £136% £lt*A 1MB 



-■ smS JJoS S 

emm ♦% qua ei7S 2014 


:w_ 


IO 


ma — ■» * was 

78* -90 77 63* 

®***'f— — ^ iwa -i*4 iswl nsa? & jm 

% 3 !iS «*■ 

560 +3 660 

E16U -A El , 

1074 -V 11B' 

W2% +1% 


J«C(7SpSW|-JO 

Uoj« — __ — Kj 

IttHrtaaY 

MaTa&Bhr. 

MBUiTaSBiY 


J®*"* si® 1 *® ***1 «20V «9V 7.1 IS 5.4 100 

fcWW- JO 404 *3 622 421 7J21 SB IDS 


Ottomans FFr 

BpakSaitirt.atic 

Salon Y. 


Saner 

Stated fcmd jc 

7Mkph 

Sudwmoy _ 

SumsmuTitY " 

rse «Q 

Total Y 

ToyeTstiBkY 

novae AS 

YtagaaTsBeY * 


_ 7,721 
E33 £231, m£ 
377*5 3,101 

n\3&m 

Elllg 39*6 
223 USD 

B9V no 

gw -A £18*« nil, 40061 

«7V -7% 11461] 625 12387 

2M *1 281 197 3,121 

tali -A* £9 £63 17439 

m -2 as2 nil, ax« 

228 +5 2G0 194 4,150 

BOM +4V 80S 443 0328 




W 

era WE Mb Met 

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Leader 
in roiling 
■BS^ bearings 


FINANCIAL TIMES 

Weekend July 23/July 24 1994 


IVtoDo 

PULP. PAPER & 
PAPERBOARD 


Plutonium find adds to 
nuclear smuggling fears 


By Jimmy Bums in London, 
Michael Urtdemann In Bonn and 
Layla Boulton In Moscow 

Tiie discovery In Germany of 
weapons grade plutonium, 
believed to have been smuggled 
in from Russia, has Increased 
fears of a potentially dangerous 
proliferation of nuclear material 
emanating from the former 
Soviet republics. 

In Bonn, Mr Bemd Schmid- 
bauer, Chancellor Helmut Kohl's 
aide with responsibility for the 
intelligence services, described 
the discovery, the first time such 
material has been found In the 
west, as "dramatic". 

In the US, one of the country's 
leading nuclear proliferation 
experts, Dr William Potter, a 
director of the Monterey Institute 
in California, warned that the 
find could be just the "tip of the 
iceberg" involving a growing 
business in illegally traded Soviet 
nuclear material 

One leading US scientist who 
has Investigated the material 
said last night; “This discovery Is 


US launches 
massive 
Rwanda aid 
operation 

Continued from Page l 


Polluted drinking water there is 
believed to be responsible for the 
outbreak of cholera which. Mr 
Clinton said, was now claiming 
“one life every minute”. The Pen- 
tagon would also provide 20m 
rehydration therapy packages for 
the refugees. 

The US State Department was 
urging the United Nations to 
deploy a Ml peace keeping mis- 
sion to Rwanda immediately, Mr 
Clinton said adding that the US 
would make the formation of an 
"ethnically and politically bal- 
anced” government in Rwanda a 
condition of US diplomatic 
recognition. 

The US president said the oper- 
ation would cost “in excess of 
$100m" (£64.5m) and Involve the 
deployment of a "moderate" 
number of US armed forces. A 
White House official said about 
1,000 US troops drawn from Nato 
would take part in the relief oper- 
ation. 

• Launching a $434m appeal for 
humanitarian aid for Rwanda 
yesterday, Mr Boutros Boutros 
Ghali, UN secretary-general said 
in New York that nearly half the 
7m population had fled their 
homes. He said the Security 
Council would be called into ses- 
sion within the next few days to 
establish a tribunal to try to pun- 
ish those responsible tor massa- 
cres in Rwanda. 

• France yesterday ruled out 
keeping Its troops In Rwanda 
beyond its self-imposed deadline 
of August 21, despite pressure 
from the US and the United 
Nations for Paris to extend its 
humanitarian mission there. 


extraordinarily significant. It rep- 
resents a change from the hypo- 
thetical to proof.” 

A senior European Union offi- 
cial yesterday confirmed that sci- 
entists bad only recently estab- 
lished beyond doubt that six 
grammes of the nuclear material 
seized by German police at the 
beginning of May - a tenth of the 
total - was highly enriched plu- 
tonium-239. 

The material was seized in a 
raid on a garage in Tengen in 
southern Germany, near the 
Swiss border. 

Analysis of the material was 
finalised by scientists working 
for the European Commission at 
the end of June, leading to a 
flurry of behind-the-scenes diplo- 
matic activity, straddling the US, 
western Europe and Russia. 

The case was discussed at a 
special meeting of US, Russian 
and European law enforcement 
officials in Germany earlier this 
week. Last night, the Foreign 
Office said it was “following up” 
the case with the German author- 
ities through the British embassy 


By Paul Abrahams 

Menarini, Italy’s largest domestic 
drugs group, said yesterday it 
intended to transfer all manufac- 
turing from Italy to Germany, as 
a protest against proposed 
government-imposed price cuts. 

The company flamboyantly 
revealed its threat by taking full- 
page advertisements in the Ital- 
ian na tional press. 

The disclosure was timed to 
coincide with a meeting of the 
Italian cabinet in Rome to dis- 
cuss additional healthcare 
reforms. These could Include 
drug price cuts of at least 6.5 per 
cent, although the health minis- 
try is calling for a 10 per cent 
reduction. 

“With this [proposed] price 
structure, the lowest in Europe, 
we have no chance of remaining 
competitive in Italy and so we 
are going," said Mr Lucia Aleotti, 
managing director. "I think other 
Italian companies will be forced 
to close or move.” 

Menarini said it was In negotia- 
tions with Italian unions about 
possible redundancies. The com- 
pany employs nearly 3.000 people 
in Italy. Trade unions were 
angered by the newspaper 
announcement, and promised a 


Continued from Page 1 


judicial interference. The deci- 
sion to seek legal redress 
reflected Mercury's frustration at 
its inability to persuade Oftei to 
change the regulatory system in 
its favour. In recent months it 
has launched a strenuous cam- 
paign in the courts, the media 


in Bonn. In Moscow, a spokes- 
man for the Russian external 
Intelligence service denied the 
material originated, from Russia. 

However, Mr Wilhelm Gxnelin, 
director of the EU Commission's 
Euratnm Safeguards non-prolifer- 
ation agency, said; “The data we 
have, suggests it is highly proba- 
ble the material was manufac- 
tured at a Russian military site.” 

He added: “Every bit of mate- 
rial has its own characteristics 
and in this case the characteris- 
tics show that it was produced at 
three possible sites in Russia.” 

US scientists, who together 
with police and western intelli- 
gence agencies have been moni- 
toring the case, believe the mate- 
rial may have been smuggled out 
of the Kurchatov Atomic Energy 
Research Institute in Moscow or 
from a research site known as 
Sverdlovsk 44 in the Urals. 

The German investigation Is 
understood to have discovered 
unconfirmed intelligence that the 
seized material may have been 
on its way through a circuitous 
route to Iraq. 


national strike in protest They 
recognised Italian domestic pha- 
marceutical companies were 
being squeezed, but felt the com- 
pany was not giving the Ml rea- 
sons for seeking to switch pro- 
duction. A consumers group 
threatened legal action against 
Menarini demanding it return 
government subsidies. 

The group already has produc- 
tion facilities in Germany as part 
of efforts to reduce dependency 
on the Italian market hi 1992, it 
acquired Berlin Chemie, east Ger- 
many's biggest drugs maker. 

Mr Aleotti blamed the decision 
on a series of healthcare reforms 
Introduced in January by the 
Italian government which is 
grappling with a huge public sec- 
tor deficit The government plans 
to cut drugs spending from 
L13,000bn (£5.4bn) In 1993 to 
LIQ.OOObn this year. 

The reforms were also intro- 
duced after the sector was 
shaken by a scandal involving 
payments to government officials 
in exchange for certain drugs to 
be reimbursed by the state. 
Charges of bribery were brought 
against Mr Alberto Aleotti, Men- 
arini’s chief executive and chair- 
man. He vigorously denied the 
accusations. 


and with MPs to bring pressure 
to bear on Mr Cruickshank. 

However, it has yet to achieve 
any success. Mr Cruickshank 
described recent Mercury claims 
as “shrill and unnecessary”. 

Oftei is reviewing aspects of 
the current interconnection 
regime, and will publish a consul- 
tation paper in the autumn In 


Halifax and 
Allied 
Dunbar to 
join new 
regulator 

By Alison Smith 

Halifax Building Society and 
Allied Dunbar - the last rignifi- 
cant organisations whose sup- 
port tor the Personal Investment 
Authority was in doubt - yester- 
day announced that they would 
sign up for the new regulator. 

The news is a boost for the 
PIA, which has been the subject 
of intense controversy in the 
financial services industry. It 
hegan operations this week, 
replacing the existing regulators 
in a move intended to improve 
investor protection. 

Despite the list of financial ser- 
vices companies which have 
expressed opposition to aspects 
of the regulatory change over 
the past few months, the move 
leaves Prudential Corporation, 
the UK's largest life insurer, as 
the only large organisation to 
have insisted on its right to be 
regulated directly by the Securi- 
ties and Investments Board, the 
chief City watchdog. 

Statements from Halifax and 
Allied Dunbar show they still 
have serious doubts about the 
PIA’s likely effectiveness, 
despite their applications to join. 

Mr Mike Blackburn, Halifax 
chief executive, said the debate 
about whether the current sys- 
tem could deliver high standards 
of investor protection would con- 
tinue. Tor so long as it 
remains”, however, the society 
believed that the PIA would 
stand a better chance of reaching 
the necessary standards with the 
support of Halifax. 

Mr George Greener, chief exec- 
utive of BAT’S UK financial ser- 
vices operations, which include 
Allied Dunbar and the other sub- 
sidiary Eagle Star, said the com- 
panies were joining because 
there was more chances of 
influencing it from within. While 
he still had grave concerns about 
the structure and resources of 
the PIA, “we are where we are,” 
be said. 

While the PIA was careful yes- 
terday to say only that it was 
treating the applications like 
any others, it will have been 
relieved to receive them. 

Had Halifax or Allied Dunbar 
followed Prudential’s announce- 
ment of its refusal to join the 
PIA In March, then the balance 
of the debate within the industry 
could have turned against the 
new regulator. 


C&G leads on profit per 
customer, Page 4 


addition to capacity-based charg- 
ing, Mercury is seeking to secure 
abolition of the special payments 
it has to pay BT as compensation 
for the losses BT makes on its 
local network. 

Mercury describes the pay- 
ments as a “tax on competition", 
a charge strongly denied by both 
Oftei and BT. 


Drug group ‘quitting 
Italy for Germany’ 


Mercury loses battle over BT’s charges 


FT WEATHER GUIDE 


British Isles 

The UK and much of Ireland will 
continue calm because of high 
pressure over the North Sea. 
However, the sunshine will 
occasionally be interrupted by 
bands of cloud in southern 
England and in the Midlands. 
Sunny periods will be longest 
and most frequent in western 
Wales and in south-west 
Ireland. In northern and western 
Scotland, Ihere may be fleeting 
showers. Temperatures will 
exceed 25C in south-east 
England, and stay above 20C in 
Scotland and Ireland. 

Continent 

It will remain warm throughout 
much of western Europe. 
Temperatures should reach 3QC 
In Germany, the Low Countries, 
and virtually all of France. 
Searing heat will be confined to 
Spain, where it will be about 
40C in the south. In central 
Europe, high pressure will bring 
plenty of sunshine and above 
normal temperatures. In the 
Balkans, the heat and humidity 
will lead to some heavy 
thundery showers, specifically 
in Bosnia and northern Greece. 

Five-day forecast 

There will be little change on 
Sunday, though rain will move 
into Ireland and western 
Scotland. From Monday, a very 
warm air mass will move north 
from Spain to France and Into 
Germany, lifting temperatures to 
around 30C or 35C. The heat 
win not abate before 
Wednesday. 



Situation at 12 GMT. Temperatures 
maximum for day. Forecasts By Mateo 
Consult of the Netherlands 

TODAY'S TEMPERATURES 




Mndmum 



C 

F 

Abu Dhabi 


38 

101 

Accra 

cloudy 

27 

81 

Algiers 

sun 

34 

93 

Amsterdam 

sun 

29 

84 

Athene 

fair 

32 

90 

Atlanta 

Bund 

33 

92 

a. Aims 

shower 

12 

64 

S.ham 

cloudy 

26 

79 

Bangkok 

cloudy 

35 

95 

Barcelona 

sun 

28 

83 

Bailing 

cloudy 

32 

90 

Belfast 

fair 

21 

70 

Belgrade 

shower 

29 

84 

Berlin 

sun 

31 

88 

Bermuda 

daudy 

29 

84 

Bogota 

Shower 

29 

64 

Bombay 

rain 

29 

84 

Brussels 

sun 

30 

86 

Budapest 

sun 

31 

88 

CJiagen 

sun 

26 

79 

Cairo 

sun 

39 

102 


Cape Town 

fair 

13 

56 

Caracas 

cloudy 

26 

83 

Cardifl 

sun 

23 

74 

Casablanca 

lair 

29 

64 

Chicago 

thund 

29 

84 

Cologne 

fair 

31 

86 

Dakar 

doudy 

30 

88 

Dallas 

an 

38 

101 

Delhi 

rain 

33 

92 

Dubai 

aim 

37 

99 

Dublin 

fair 

20 

88 

Dubrovnik 

thund 

31 

86 

Edinburgh 

fair 

21 

70 

Faro 

sun 

31 

88 

Frankfurt 

fair 

32 

30 

Geneva 

thund 

26 

63 

Gibraltar 

sun 

31 

68 

Glasgow 

fsur 

21 

70 

Hamburg 

sun 

30 

86 

Helsinki 

5U1 

24 

75 

Hong Kong 

thund 

20 

84 

Honolulu 

cloudy 

31 

68 

Istanbul 

sun 

30 

86 


Jakarta 

fab- 

31 

88 

Jersey 

sun 

22 

72 

Karachi 

doudy 

w 

86 

Kuwait 

SU1 

44 

ill 

LAngeiee 

fair 

25 

77 

Las Palmas 

fair 

28 

83 

Lima 

douefy 

19 

66 

Lisbon 

Sun 

23 

84 

London 

fair 

28 

83 

Lux.bourg 

fata 

30 

86 

Lyon 

thund 

31 

88 

Madeira 

fair 

85 

77 

Madrid 

eui 

35 

95 

Majorca 

sun 

31 

88 

Malta 

sun 

30 

88 

Mancliester 

fair 

24 

75 

Manna 

shower 

31 

88 

Melbourne 

fab- 

14 

57 

Menton City 

shower 

20 

68 

Miami 

thund 

32 

90 

MS an 

fair 

31 

88 

Montreal 

Mr 

27 

81 

Moscow 

shower 

19 

66 


Munich 

sun 

29 

84 

Nairobi 

fair 

22 

72 

Naples 

sun 

32 

90 

Nassau 

shower 

31 

88 

New York 

thund 

29 

84 

Nice 

fair 

29 

84 

Nicosia 

sun 

35 

95 

Oslo 

lair 

25 

77 

Parts 

fair 

32 

90 

Perth 

shower 

18 

65 

Prague 

sun 

30 

88 

Rangoon 

rain 

29 

84 

Reykjavik 

to 

14 

57 

Rio 

fair 

£4 

75 

Rome 

sun 

32 

90 

S.Frsco 

far 

23 

74 

Seoul 

fair 

33 

92 

Singapore 

doudy 

32 

SO 

Stockholm 

aun 

26 

B3 

Strasbourg 

fab- 

31 

86 

Sydney 

shower 

15 

59 

Tangier 

sun 

32 

90 

Tel Aviv 

sun 

34 

93 

Tokyo 

rain 

30 

66 

Toronto 

fata 

28 

83 

Vancouver 

fair 

26 

79 

Venice 

sun 

30 

88 

Vienna 

sun 

30 

86 

Warsaw 

sun 

29 

84 

Washington 

thund 

31 

88 

WeUngton 

shower 

11 

52 

Winnipeg 

shower 

23 

74 

Zurich 

shower 

27 

81 


“Late Night Comfort Service” — sleep well on Lufthansa! 

tirftfwnsa now offers Rr« Class oasaenaera on lata nlgm Naw MxH aervtCM a choice lo have 
a pie-Rigmimei in the airport hxmge. Individual service requests then snow passengers to 
B8IU0 lor an undisturbed rest comploie with pUbwa, Markets and sheets tar added comfort 
Soon true hind of service will be introduced on otfier routes. /"S I „ ». i 
To booh you ouemtgtn can Lufthansa on 0345 737 747. LUIUlallSB 


THE LEX COLUMN 

The sunlit uplands 


FT-SE Indext 3114.7 (+19.6] 


broke's Texas chain could also be 
badly squeezed. But Boots and WH 


Yesterday’s clutch of data had the 
market purring again about the 
golden scenario for the UK economy. 
Despite the widespread fears In antici- 
pation of the event April’s tax rises 
appear to have done little to check the 
economy’s progress. With, year-on-year 
growth naming at 33 per cent, total 
output is now 13 per cent above its 
peak of tour years ago. It still appears 
that the output gap is narrowing only 
gradually. If so, that suggests the UK 
is capable of a sustained spell of 
above-trend growth without igniting 
inflation. 

Such pleasant thoughts wafted the 
FT-SE 100 index L2 per cent higher 
this week. Ever-improving prospects 
for earnings and dividends on the 
back of the rebounding economy are 
continuing to drive equities. With a 
running yield of 43 per cent remain- 
ing less than 1 percentage point below 
base rates, the market still appears 
relatively cheap. But, as ever, It will 
be gilts that determine equities’ ulti- 
mate fate. That is where the doubts 
arise. The latest published musings of 
Eddie George and Kenneth Clarke sug- 
gest they are ready bo pre-empt the 
first whiff of inflation by raising short 
term rates. Whether that calms or 
alarms the long end of the gilts mar- 
ket will be the critical test of the stock 
market's nerve. 

It would indeed be good news for 
equities if short term rates were to 
rise and long rates subride later this 
year. A flatter yield curve would 
squeeze consumer spending while 
encouraging investment. But the 
recent experience of the US bond mar- 
ket suggests it would be dangerous to 
anticipate as much. 

France 

The economic news emerging from 
France will keep business leaders 
happy on their annual migration to 
the beach. May’s strong industrial pro- 
duction figures are evidence of a 
broadening and accelerating recovery. 
Mr Edmond Alphanddry, the economy 
minis ter, suggests French GDP growth 
might rise to 2 per cent this year com- 
pared with the government’s previous 
forecast of 1.4 per cent That is clearly 
good news for corporate France. The 
bounce in the CAC 40 in July reflects 
as much. 

But global investment flows will be 
just as critical for the direction of the 
Paris bourse. Even though the UK and 
French economies have been out of 
synch, it is significant that their stock 
markets have moved closely in line, as 


Equity markets 


FISE 100 Index X 40 Index 

3,600 2*400 



the accompanying chart shows. Like 
the UK. worries about the pace of 
recovery have unnerved international 
bond investors. With long bond yields 
in France rising to 73 per cent and 
inflation felling to 13 per cent, the 
economy may be squeezed again. The 
French room for manoeuvre on short 
term rates has been stymied by the 
Bundesbank's latest moves. 

Those high real interest rates may 
also point to a developing struggle for 
capital between private and public sec- 
tors. With unemployment remaining 
stubbornly high, the government’s 
budget deficit can not be quickly cut 
Political uncertainty ahead of next 
year’s presidential elections win add 
an extra dement of uncertainty. The 
French air traffic controllers' strike - 
disrupting the holiday migration - 
may presage unrest to come. 

Stores 

UK retailers like to believe they are 
the best in the world. The market 
dearly does not think the same. The 
mere threat of the US DIY chain, 
Home Depot, opening stores in the UK 
has caused something of a panic this 
week. It is easy to understand why. In 
its short history. Home Depot has 
been a highly aggressive operator. Its 
execution of everyday low pricing 
leaves UK imitators, such as B&Q, 
trailing in its wake. As yet the threat 
appears remote; Home Depot will not 
quickly open stores across the coun- 
try, bui the UK DIY market is precari- 
ously balanced. 

If it did establish itself. Home Depot 
would throw grit into the main engine 
of Kingfisher's growth. B&Q accounts 
tor about a quarter of its profits. Lad- 


Smith, which together run the lacklus- 
tre Do It All chain, would appear to 
have the biggest problem. There is a 
need for further rationalisation in the 
mature industry even without Home 
Depot There must be a suspicion that 
J. Salnsbury, which runs the small but 
perfectly-formed Homebase chain, may 
eventually be tempted to have a go. 

Overseas entrants threaten to step 
up the competition in many other UK 
retail sectors, providing another rea- 
son to believe that some domestic 
retailers will struggle to grow. With 
consumer spending muted and infla- 
tion low, that makes it all the harder 
to understand why so many stores 
groups trade an the same multiples as 
they did back in their glory days. 

UK banks 

Three influences look set to domi- 
nate the clearing bank Interim results 
season which kicks off with Lloyds 
Bank next week. Loan demand has 
stayed weak and the turmoil in the 
bond markets has depressed trading 
income. Those two factors will make 
for a lacklustre performance at the 
operating level. But thanks to the 
accelerating economic recovery, provi- 
sions will have fallen rapidly, perhaps 
on average by around a third from 
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dmdaids so high that retained earn 
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FINANCIAL TIMES 


WEEKEND JULY 23/JULY 24 1994 




SECTION II 


Weekend July 23/July 24 1994 


I**., 


ui! 


Trade at 



n market 




An Old Lady with new battles to face 


As the Bank of England celebrates its 
tercentenary, John Plender considers s 
its past links with the finance of 
war and speculates on its future 


A re central bankers a 
good thing? A simple 
enough question, yon 
might think, as the 
300th birthday of the 
Old Lady of Threadneectle Street 
approaches. Yet, from the begin- 
ning, when, the Bank of England’s 
charter was sealed on July 27 1694, 
the debate has never failed to excite 
powerful passions. 

Within a year, a pamphleteer was 
declaring that the competition pro- 


vided hy this fled g lin g institution 

ush’d wr 


had “almost crash’d several sorts of 
Blood-suckers, mere Vermin. Usu- 
rers and Gripers, Goldsmiths, Tfclly- 
Jobbers, Exchequer Brokers and 
Knavish Money-Scriveners, and 
Pawn-Brokers, with their Twenty 
and Thirty per cent". 

Then, as the charter renewal of 
1709 loomed, another polemicist 
busily penned a tract entitled Some 
Considerations against the Continu- 
ance qf the Bonk oj England. At 300 
years’ distance we can safely say 
that he failed to win the argument. 
And, of course, the concept of cen- 
tral banking embracing the goal of 
price stability and the role erf lender 
of last resort to the banking system, 
was unknown to people of the late 
17th century. 

hi the 20th century the reputation 
of central hankers has waxed and 
waned - or, more accurately, waned 
and waxed. The Bank of England’s 
heyday was in the four decades that 
preceded the first world war. Ster- 
ling was preeminent in a monetary 
system pegged to gold and the CSty 
of London financed the lion's share 
of world trade. 

Then came Montagu Norman, 
whose autocratic reign as governor 
of the Bank from 1920 to 1944 incor- 
porated the ill-fated return to the 
gold standard and the Depression. 

ft was Norman's financial ortho- 
doxy, and his opposition to JKeynes- . 
ian demand management in the 
1930s, that gave central iwwtiwg in 
Britain a bad name. Elsewhere, cen- 
tral bankerly conservatism was 
attracting sfrnflar opprobrium. Poli- 
ticians sought to assert greater con- 
trol over the dangerous and mis- 
guided people who brought ns the 
slump. 

Murder! Rape! Ravishment! Sum! 
was the caption an the celebrated 
GUlray cartoon of the Old Lady 
being wooed by WiDiaia Pitt for her 
money. Where Pitt failed, the 
Labour chancellor Sir Stafford 
Cripps succeeded. In 1946 the Old 
Lady was not only raped, but sub- 
jected to the indignity of becoming 
a nationalised industry. 

Political economy has since expe- 
rienced a mood swing. There Is n 


new orthodoxy, and it states that 
while central hankers have been 
bad, politicians have been worse. 
Having taken over much of the cen- 
tral hankers’ job, they created a 
devastating inflation that destroyed 
- savings, distorted incentives and 
imposed a hidden tax an the people. 
And they have proved incapable of 
maintaining a stable international 
exchange rate regime. 

In the first 250 years of the Bank 
of England’s existence, inflation 
was largely associated with the 
fi n a nci a l stresses of war. Indeed, 
the Bank of England's initial raison 
d'etre was to provide money for Wi- 
liam of Orange’s battle against the 
French and to tidy tip the mess of 
unfunded public debt that remained 
after the three Angjo-Dntch wars. 

War could always be financed on 
the basis that it was unlikely to go 
on for ever. Investors in govern- 
ment debt assumed that any deficit 
in the government’s accounts would 
he tempor ar y and would ultimately 
be made good. The striking feature 
of the surge in the general price 
level that came after 1945 is that it 
was the first great peacetime infla- 
tion since thft ftmfc «im> rntn gjjs- 
tence. The technique of deficit fin- 
ancing was applied to the huge and 
very u&taupanoy apparatus of the 
modem welfare state. 

In the absence of a gold standard, 
or any other for fo g mone- 

tary system, public sector deficits 
were not made good. They were 
monetised. In the vernacular, the 
government paid its bills by barrow- 
ing from the banking system, which 
is the modem equivalent of printing 
money. War Loan, the undated, 
archetypal government IOU, lost 
most of its value.' Investors were 
swindled in a mannm- not seen 
since the Elizabethan period, as 
governments provided monetary 
accommodation not only tor their 
own deficits, but tor wage chrima, 
rufl shneltB anfl the test. 

The result has been a relative 
revaluation of the central bankers’ 
re p utati on. At a time when other 
nationalised industries have been 
privatised and downsized, more cen- 
tral banks have materialised in the 
global public sector. Their number 
has rfeen from 59 in 1950 to 161 at 
the start of this decade. 

As Forrest Capie, Charles Good- 
hart and Nort>ertSdmadipirtrt in a 
monograph for the Bank erf England 
tercentenary, which has been 
shamelessly plundered for parts of 
tins article, “when a new nation 
state seeks to establish itself; the 
foundation of an independent cen- 
tral bank will be an early item an 
the agenda, slightly below the 



UcmHo’s 7fte flour ofSan/tomBno In the National Galafy, London: Tin Bank of England's Inffial raison <f Am was to provlda moony tor 


tatyamm Ait Ltoary 


T 





o/ ah 


to eo so .two, re.. ?o 


SO - ao . 70 ” 00 90 2000 


design of the flag, but above the 
establishment of a national airline". 

Meantime, the managers of estab- 
lished central banks have 
demanded, and in some cases 
achieved, independence from gov- 
ernment - this is the great new 
economic nostrum, of the day, for 


which officials at the Bank of 
England all too understandably 
yearn. And in the extraordinary 
case of Italy, central banking 
recently achieved its apotheosis. 
The head of the Banca d Italia. 
Carlo AzegBo CSampi, was elevated 
to the Job of prime minister because 


no politician was deemed suffi- 
ciently credible. 

The paradox here is that central 
bankers are flattered by the choice 
of comparison. They may be less 
corrupt than politicians. But then- 
record, in those activities where 
they have retained freedom from 


the politicians, is at best patchy. 

Many economists argue, for rea- 
sons that will be explored shortly, 
that central bankers are a threat to 
the taxpayer’s health and should be 
dispensed with altogether. In prac- 
tice, a place such as Hong Kong, 
where people enjoy higher per cap- 


ita incomes than in the UK, has 
rubbed along remarkably weB over 
the past fins' decades without the 
services of a formal central bank. 

So the question Is not merely 
whether central banks are a good 
thing, but whether they are so dif- 
ferent from other commercial 
organisations that they are entitled 
to their exalted and protected sta- 
tus; and, more fundamentally, 
whether they are necessary at alL 

The unique feature of the Bank of 
England, in 1694, was that it was 
the only public hook in Europe with 
the power to issue notes. A unique 
feature of central banks today is 
that they usually have a monopoly 
of the note issue. Yet there are 
some theorists, , most notably the 
late Friedrich Hayek, who believe 
that the issuing task should be pri- 
vatised and that all commercial- 
banks should have the freedom to 
Issue their own notes. The anti- 
inflationary logic is the opposite of 
Gresham’s law; good bank notes 
that held their value would, In Hay- 
alt's view, drive out the bad notes 
from banks that over-issued. 

Scottish banks continue to issue 


Continued on Page XX 


CONTENTS 


Finance & Family - The Stock 

Exchange and rolling settlements 111 


Fashion : Paris and the couturier's 
art XII 


Perspectives ; The aliens that are 
sweeping America VW 


Drink : Nicholas Lander on 
consumer-friendly wine pricing XH1 


Property : Elm to spare? Gerald 
Cadogan knows just the place XV 


Travel : Nicholas Woodsworth 

makes hfe own pilgrim's progress XI 



a The ptot to kin Hitler 


.DC 


□ Manfred Rommel on the war, his 
father, and forgiveness XX 


*n» 


xn-MM 


Book* 

XVI 

Bridge Chi—. CwmmohI 

X0C 

FMiha 

» 

finoiStoMBljf 

■MM 

And & Drink 

xn 

Owteibg 

XV 

Hew To Spam! it 

XU 

Martmi 

■ 

tentwIThopipion He* 

XX 

MateOifl 

X 


vaux 

NmiMh 

XX 

Properly 

XV 

Span 

X 

DM 

30 

WARM*) 

XDt 


Long View/Barry Riley 


Throgmorton throes 


Last week the London 
Stock Exchange gained 
a new chairman, John 
Kexop-Welch. This week 
It made the switch to 
rolling settlement, ini- 
tially over a leisurely 10 
days, which is mare like 
strolling settlement, but 
next year in five days 
and eventually just three. The venera- 
ble Throgmorton Street institution, fear 
over 200 years a pillar of the City of 
London, along with the Lloyd's insur- 
ance market. Is attempting to face the 



fixture: but does it have one? 

The latest changes tell us something 
about the pressures upon the exc han ge. 
Bolling settlement Is a response to the 
requirements of international institu- 
tional investors, who like to trade on a 
standardised basis, in roughly the 
American style. The interests of domes- 
tic private investors are therefore being 
sidelined; speculators who have been 
accustomed to dealing within the 
account are instantly inconvenienced 
and the general public win find it hard 
to adjust to three-day settlement, when 
that eventually comes. 

John Kemp-Welch's appointment is 
a lso significant. He has Just retired as 
joint senior partner of Cazenove, Lon- 
don's V=*<flng corporate broker . Caze- 
nove does have wealthy private c l ie n t s , 
but it lias been best known over many 
years as a somewhat rough and tough 
promoter of the interests of its many 
corporate clients. . 

Sir Antony Hornby, a former senior 
partner, declared after a controversial 
1960s <tawn raid for a client company 
♦tiat equality among investors was an 
illusion. If someone decides more 
quickly, or has a better tanker, tins is 
not unfair. 

It is hard to imagine that in the past 
a fling light of such an uncompro- 
mising if prestigious firm could have 
become chairman of the exchange, 
when ft was seeking to fulfil a broad 
public interest mandate. The chainnen 
have ten ded instead to come from medi- 
um-sized firms, and from that more 
mnripHgt base have been better able to 


pursue consensus policies. 

But a d fflte re a t argument now seems 
to apply. Cazenove is the only big inde- 
pendent firm which is ftwifawwifeiBy 
committed to the London market {dace 
(apart, perhaps, from the market maker 
Smith New Court). 

Most of the other main firms are 
parts of global investment banking 
operations which can (and do) belong to 
markets all over the world . Wit hout 
Cazenove the London Stoc k Excha nge 
would have an even bigger identity cri- 
sis. 

In its recent history, dominated by 
the consequences of the “Big Bang” 
changes of 1986, the London Stock 
Exchange has reflected the long-term 
strengths and weaknesses of the City. 
Entrepreneurial and outward-looking 
Ltadotebased fi rms have seized oppor- 
tunities for the trading of 

equities and bonds that sleepier and 
domestically-oriented Continental 
bourses have been slow to recognise. 


through nominee accounts. The latter, 
in turn, trad to drive a wedge between 
companies and their small afrarthold- 
ers, the nominee arrangements 

are carefully and expensively designed. 


M eanwhile the planning of 

tile back office technology 
bee often been poor, lead- 
ing to disaster in early 
199S when the expensive Taurus paper- 
less settlement system was abandoned. 
Ppc|wngfhffity for its replacement, the 
simpler Crest, has best snatched away 
hy the Bank of England; if settlement, 
once a core activity, is to be controlled 
elsewhere, can any of the exchange's 
activities, from, price dlssamjnathm to 
control of listings, be sacrosanct? 

Originally, the Stock Exchange 
thnmg ht electronic settlement was all 
aTXffl* farilTfcatfag tr anaactinns, which at 
course is what its members make their 
living from. Bat the key Issues have 
turned out to be those of holding rather 
than trading securities, and of main- 
taining contact be twe e n , companies and 
shareholders. Taurus could not cope 
with the complex issues involved. 

The rather less ambitious Greet will 
force others to make some, of the 
choices. Orest could help drive a wedge 
between institutional and private inves- 
tors, for instance, because small share- 
holdings will not be included except 


T his underlines the possibility 
that the Stock Exchange will 
be tom between the global 
firms (with their international 
cheats) ?mri the ftmaTi com panies and 
p ri v at e «fi*w ** of th»» ri founfisHn market 
place. There are precedents in the 
American markets, where the New 
York Stock Exchange lists the big com- 
panies, and is increasingly seeking for- 
eign company hstings, while thousands 
of small US companies are 1 traded on 
the quite separate Nasdaq system. 

Certainly, the London Stock 
Exchange is a popular market. Hun- 
dreds of companies have sought listings 
in the past year or two, admittedly at a 
favourable time of the cycle. 

To an extent, the market place will 
decide. Rival dealing system are begin- 
ning to nibble at the central market. 
The power of the big London market 
makers, who were vastly profitable in 
last' year's hull market, win be one of 
the biggest challenges for John Kemp- 
Welch. Money talks, and they have 
prospraed mightily from the relatively 

opaque trading system, which makes it 
fairly easy to trade their way out of 
large positions. Investors, though, will 
tend to drift towards more transparent 
systems where they can find them. 

Once, a lot of the problems could be 
solved within the framework of an 
effective monopoly over secondary 
stem trading and a fixed commission 
structure. The holes could be plugged 
through cros&ratasidisation. 

Fierce international competition 
requires awkward derisions to he made, 
however. The exchange has already 
shed mray of its activities, including 
private mvestra support and the profes- 
sional regulation of market practitio- 
ners. The question, perhaps, is whether 
the viable core .would still merit the 
name London Stock Exchange. But 
igifflm Lloyd’s it has at least retained 
its dignity. 


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•» 






n WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1 994 


MARKETS 


London 


A week of 
bread and 
circuses 

Roderick Oram 


FT-SE lOO margins 

Tnufing profits as K of tunorer 
16 


T he Conservatives 
delivered bread 
and circuses this 
week, their first 
double act in a 

long tune. 

First came the Cabinet shuf- 
fle which elevated to party 
chairman Jeremy Hanley, a 
man promising livelier leader- 
ship. He is well qualified. A 
son of show-business parents 
and a one-time child screen 
star, he is known as a good 
communicator and raconteur. 

His first party political pro- 
nouncement came but a day 
later. The Labour Party had 
elected Tony Blair leader Tor 
his looks, not his policies.” 
Catchier quips could come 
later from the pen. of Hanley’s 
new deputy, Michael Dobbs, a 
political novelist with the dou- 
ble-edged. billing as a “second 
Jeffrey Archer”. 

Then yesterday came the 
bread. Gross domestic product 
grew by 0.9 per cent during die 
second quarter, its fastest rate 
since the recovery began in the 
spring of 1992. Output is now 
12 per cent above the pre-re- 


cession peak of four years ago. 
News earlier in the weds of 
favourable consumer spending 
and government borrowing fig- 
ures were butter and jam. 

With a strengthening dollar 
helping to stabilise European 
bond markets, gilts and equi- 
ties savoured the good news. 
The FT-SE 100 index of the 100 
largest UK companies rose four 
out of five days to end the 
week up a net 39.8 points at 
3,114.7. The Footsie yesterday 
broke through the important 
resistance level of 3,100 and 
held the high ground. 

Many in the market gleaned 
a degree of confidence in cal- 
mer medium-term trading from 
the co mments of three central 
bankers. Alan Greenspan, of 
the US Federal Reserve Bank, 
and Eddie George, governor of 

the Rank of Bn gland, inrilnateri 
that US and UK interest rates 
would have to rise later but 
not now to check inflation. 
Hans Tietmeyer, Bundesbank 
president, left open the possi- 
bility of German rate cuts later 
this year. 

George, in the minutes of his 



. Source; SGW&rtxrn 


June 8 meeting with Chancel- 
lor Clarke released this week, 
indicated he was watching 
three main indicators of when 
price pressures would demand 
a rate increase: the rate of 
monetary growth; inflationar y 
expectations; and cost 
increases particularly of 
labour. Monetary growth is 
“uncomfortably high" with the 
volume of cash and notes in 
circulation running 8.1 per 
cent higher over the last three 
months than a yep earlier. 
The other two indicators are 
favourable. 

But one other set of figures 
has been disquieting. Indus- 
trial raw material prices are 
running at an annual rate of 
about 10 per cent while the 
companies' output prices are 
only edging ahead at the gen- 
eral infla tion level of just over 
2 per cent. Surely margins, 
profits and dividends must be 
under pressure? If they are. 


HIGHLIGHTS OF THE WEEK 


Price 

/day 

Change 
on week 

1994 

Wgh 

1994 

Low 


FT-SE 100 Max 

3114.7 

+39.9 

35203 

28763 

DaBar Improvement 

FT-SE Mid 2S0 Index 

3630.9 

+79.6 

4152.8 

3383.4 

Cq>M goods stocks bought 

British Aerospace 

512 

+19 

584 

390 

Switch from Rote-Boyce 

CeiKech 

211 

+19 

233 

191 

Merck collaboration 

Courtaukfs 

530 

+20 

580 

467 

Wel-rocehmd agm 

Kingfisher 

509 

-25 

778 

477 

Competition concerns 

Mirror Group 

140 

-12 

203 

123 

Smith New Court downgrade 

National Express 

330 


330 

245 

E Md airport traffic figs 

Royal Insurance 

263 

+16 

350 

232% 

Crodtt Lyonnais recommends 

Shod Transport 

742 

+32 

755 

651 

BOHon sale hopes 

Smith (David S) 

547 

+24 

573 

398 

Better than expected figures 

a 

291 

+19* 

295 

280 

Successful flotation 

Tomkins 

232 

+8 

283 

213 

Broket's recommendations 

VSBL 

895 

+37 

1093 

818 

Likely demise of Swan ffcmtar 

* Change based on Issue price 


*HseaJ yeas 


how can the market be looking 
Ear further growth in earnings 
to fuel the next rally? 

S G Warburg Securities 
points out that profit margins 
were under equally dramatic 
pressure in late 1992 and early 
1993. Raw material prices rose 
as sterling fell following depar- 
ture from the ERM yet earn- 
ings per share rose substan- 
tially last year. 

One explanation is that raw 
matgri flig are typically only a 
third of total costs while 
labour costs, which have been 
much more subdued, account 
for a far higher share. More- 
over other costs, notably of 
money, have falloq sharply. 

Some sectors, such as paper 
and packaging, have enjoyed 

Unproved marg ins thnnVc to 

better trading conditions as 
witnessed by the results of 
David S Smith Holdings thic 
week. Pre-tax profits for the 
year to April were up 56 per 
cent to £42 An. 

But the main story behind 
most margin improvements 
continues to be cost reductions 
and corporate restructuring, 
Warburg argues. It forecasts 
further widening of margins 
for the Footsie companies, as 
the chart shows. From a recent 
low of 13.3 per cent in the 
financial year 1991-92. it esti- 
mates a margin of 15J8 per 
cent this fiscal year and 15.8 
per cent next year. 

It identifies a mixed bunch of 
companies offering the best 
margin growth next year rela- 
tive to their average 1989-93 
margins- They range from new- 
ly-privatised utilities such as 
National Power (up 41 per 
cent) and Eastern Electric (up 
88 per cent) with plenty of 
scope to cut costs, to corporate 
restructuring cases such as ICI 
(up 47 per cent) and British 


Aerospace (up 233 per emit). 

The worst performers are 
equally mixed. Mature utilities 
facing increasing competition 
and the tightening of regula- 
tory screws are among the 
weaker stocks. British Tele- 
communications* 1995 margin 
is forecast to foil 13 per cent 
from its 1988-93 average while 
British Gas’s will drop u pex 
cent 

Consumer stocks are some of 
the most adversely affected 
given the tough pricing envi- 
ronment In which they oper- 
ate. Food manufacturers and 
retailers are particularly vul- 
nerable. Shoprite, a Scottish 
discount grocer for too small to 
be a Footsie stock on War- 
burg’s list, testified to the 
trauma an Thursday. Its sec- 
ond profits warning in two 
months halved its share price 
to 30p. It had peaked in Febru- 
ary at 243p. It has cut its costs 
and s tabilis ed its marg ins but 
it cannot generate adequate 
turnover. 

One Footise retailer Warburg 
does identify is Argyll Group, 
the Safeway supermarket 
chain. It forecasts Argyll's 
margin will be 8 per cent lower 
next year than the group's five- 
year average. The trading news 
from Argyll this week was 
more positive than that. Sir 
Alistair Grant, Its c hairman , 
told the agm that first quarter 
like-for-like sales and pre-tax 
profits were ahead of last 
year’s. Similarly, Sir Christo- 
pher Benson, at Boots. agm. 
could speak of better sales in 
all divisions except DIY. 

Shareholders at neither agm 
were happy. Complaints from 
them about the impressive 
bread executives had made 
turned both meetings into a bit 
of a circus. 


Serious Money 

Advisers who want 
their cake up front 

Gillian O’Connor, personal finance editor 


hat is worrying 
about the life 
insurance indus- 
try is not just its 
faults but its attitude. The 
most obvious faults are failure 
to train or check up on sales 
staff. 

Barclays and Nationwide are 
the two latest big names to be 
damned for bad training of 
sales staff - the very problem 
that earlier caused Norwich 
Onion to poll all its salesmen, 
off the streets and put them 
back in the classroom. lack of 
proper control systems was the 
sin at Legal and General and 
ComhfrL 

Bad, but not really that sur- 
prising: the criticisms merely 
confirm what the public had 
suspected already. And per- 
haps the companies will repent 
and amend their ways. 

More disquieting is a recent 
survey by Sun Life asking 
independent financial advisers 
what commission, structure 
they would like in future - ie, 
when disclosure becomes com- 
pulsory in. January. It is hard 
to believe that the public will 
continue happily to buy life 
insurance when they realise 
quite how big the commission 
bite is, particularly at the start 
of a policy. 

Outsiders had predicted that 
fear of the public reaction to 
disclosure would prompt com- 
panies to spread commissions 
more evenly over the policy 
period. Hence Sun Life's tenta- 
tive survey suggestion that the 
advisers might like to give cus- 
tomers a better deal by hand- 
ing some or aQ of the custom- 
ary commission back - or, at 
least, spread it over a longer 
period. No dice. 

More than 90 per cent of the 
independent advisers polled 
raid they would still like to get 
the same money, thank you. 
And more than half of that 90 
per cent want to stick to the 
present system - whereby they 
get the vast majority of their 
money at the time they clinch 
the sale - rather than spread- 
ing commissions more evenly 
over the life of the policy. 


Sun Life, for its part, dis- 
claims any intention of trying 
to force a change in commis- 
sion structures. It reckons the 
decision is up to the advisers, 
since they are the ones who 
will have to sell the policies. 
No worries about what will 
happen if they foil Impotence 
or complacency run mad? 

“Quean Jupiter vult perdere, 
dementat prius." 

□ QQ 

First catch your phoenix. 
Extraordinarily good fund 
managers, such as Warren Buf- 
fett and Peter Lynch, do exist 
But they are very rare and 
very hard to identify without 
hindsight So, why not aban- 
don the futfle search and settle 
for something that is attain- 
able - an index fund? 

This is one of the main mes- 
sages of a splendid American 
book called Bogle on Mutual 
Funds*. (These are the US 
equivalent of unit trusts). And 
what is so disarming about 
this particular messenger Is 
that the author. John Bogle, 
runs a £100bn mutual fund 
business called Vanguard, 
renowned for its rock-bottom 

pianagament foes. 

Index funds, also known as 
tracker foods or passive invest- 
ment funds, follow a particular 
stock market index - such as 
the FT-SE-A All-Share index - 
by investing in a bunch of 
shares selected statistically to 
mimir the indent, rather than 
beat it 

Mimicking the index sounds 
a distinctly wimpish ambition. 
Surely real fund managers beat 
indexes - or die in the 
attempt? 

The trouble is that most fail 
but soldier on. If you take 
account of costs, only one in 
five funds beat the market, 
says Bogle. And “...It la cer- 
tain that passive investment 
strategies have, will, and must, 
outperform active investment 
strategies in the aggregate". 

So, why are iwripy funds stiO 
in a minority? Three reasons. 
First, indexing is counterintui- 


tive: most people feel safer in a 
train with a driver. 

Second, investment advisers 
and managers make less from 
index funds than from actively 
managed funds; commissions 
and charges are lower. Third, 
hope springs eternal. Fortu- 
nate investors brag about their 
success; others envy and 
attempt to emulate. 

If you are bumble enough to 
settle for an index fond, which 
should you choose? Even low 
charges make a slight dent in 
performance and mean that all 
index funds are likely to do 
slightly worse than the index 
they mimic. But go for the 
index fund with the lowest 
expense ratio, ami never pick 
one with a front-end charge, 
says Bogle. 

The only UK tracker fund 
with no initial charge is Gart- 
more UK, which also has an 
annual charge of only 05 per 
cent It has a good and consist- 
ent performance record. 

□ □□ 

The new issue market has 
flickered back into life. Both 
venture capital group 3t and 
money broker Exco started 
trading at modest premiums - 
ie, the price in the stock mar- 
ket after normal dealings 
started was more than the 
launch price. 

That should not encourage 
stags to come out of hiberna- 
tion, though. Most company 
sponsors aim for a modest pre- 
mium. And both 3i and Exco 
were priced when the market 
was groggy, so the pricing was 
not ambitious. 

3i at least, always looked 
bound to appeal to large 
investing institutions, while 
Exco has Its own groupies. 
And. of course, the whole stock 
market has picked up a bit 
recently. But that is no reason 
to say “yes” to the next tinpot 
outfit that passes the hat 
round. 

* Bogle an Mutual Funds, by 
John C Bogle. Irwin Profes- 
sional Publishing, New York; 
£20.95. 



AT A GLANCE 


Finance and the Family Index 

Brokers' response to rolling settlement IU 

Buying options /Directus/ Week Ahead/Results due IV 

Gilt unit trusts' performance/ Diary of a Private Investor. V 

The Professionals: Fleming/Facts for borrowers and savers VI 

Q&A Briefcase/ New trust launches/CGT/ Highest Rates VII 


BalMBng societies depo si ts — d tgetf e lan d tag 


Net receipts. Cm Net advances. Cm 



Source: BSA 


Outflow of retail funds 
from building societies 

Building societies experienced an outflow of retail funds last 
month after two months of net Inflows, indicating that savers are 
either spending their money or putting it into other investments. 
Net outflows amounted to EM 04m according to the Building 
Societies' Association. 

At the same lime, new mortgage lending rose sharply last month 
to reach its highest level for almost two years. Net new fending 
totalled £1.14bn in June, an increase of 38 per cent on May, and 
higher than the £976m recorded In June last year. Adrian Coles, 
director-general of the BSA, said that while the figures suggested 
a more positive view of the housing market than others recently 
published, the market continued to be uncertain. 

Inland Revenue’s pledge 

Slow service from the Inland Revenue should become a thing of 
the past If new targets are met The IR's tax and collection 
offices have announced their Intention to deal with every aspect 
of people’s tax affairs correctly first time; answer telephone calls 
in 30 seconds; deal with repayment claims within 42 days during 
the peak period from April to September, and within 28 days at 
other times. Offices should be open for telephone calls and 
visitors at least 40 hows a week. Existing targets Include replying 
to correspondence within 28 days, and attencflng to callers at tax 
Inquiry centres within 15 minutes. 

Tax breaks explained 

New tax breaks for Investing in start-up companies are explained 
in a guide to the Enterprise Investment Scheme, published this 
week by the Department of Trade and Industry. 

The EIS was introduced In the last budget as a successor to the 
Business Expansion Scheme (BES), which gave investors 
substantial tax relief for investing in start-up businesses. Rules 
for the EIS differ from the BES in a number of aspects. 

Copies of the guide can be obtained free from the DTI Small 
Firms Publications, PO Box 1143, London, W3 8EQ. Tel: 081-896 
2116. 

Smaller company shares perk up 

Smaller company shares perked up a little this week. The Hoara 
Go van Smaller Companies Index (capital gains verson) climbed 
1.4 per cent to 1638.96 over the week to July 21, aft or a smaller 
rise tire previous week. 

Next week’s finance and the family 

The peak buying season for new cars starts in lust over a week, 
wfth the arrival of M -registration plates- We guide you through 
the different ways of paying for and insuring your new car. 


Wall Street 


Soaring earnings fail to impress investors 


Dow Jones Industrial Average 

3.B50 T~ 



T hese are frustrating 
times for many pub- 
licly-quoted US com- 
panies. They have 
done what Wall Street wanted: 
cat costs, revamped their 
operations and management 
structures, adopted new busi- 
ness strategies and delivered 
strong earnings growth. Yet, 
still the stock market is un- 
satisfied. 

Take Intel, for example. Ear- 
lier tins week, the computer 
chip manufacturer announced 
second-quarter profits of 
S640m achieved on 30 per cent 
revenue growth. Although it 
was the company's second con- 
secutive record quarter, and it 
was bang in line with ana- 
lysts' forecasts, the perfor- 
mance foiled to impress inves- 
tors, who sold Intel's share 
price down almost 32 to $57. 

Compaq suffered a similar 
fate. Its share price feU $1% to 
$31% on Wednesday even 
though the computer group 
reported a 53 per cent surge In 
second-quarter sales and earn- 
ings that were double the pre- 
vious year’s at $2l0m. 

Another victim of the seem- 
ingly capricious market was 
the California software devel- 
oper Sybase, which watched 


its share price plunge $8%, or 
18 per cent, to $39% following 
the announcement of second- 
quarter earnings that were 
sharply higher than a year ago 
and above analysts' expecta- 
tions. 

The selling was not confined 
to computer companies. Aero- 
space group United Technolo- 
gies reported a 32 per cent 
increase in profits that 
matched all but the most opti- 
mistic of forecasts - but its 
shares feU almost $4 to $62%. 

There were other examples 
this week of stocks falling in 
spite of strong quarterly 
results bat, in almost each 
instance, the reason for the 
apparently surprising decline 
was the same: while the sec- 
ond-quarter looked good, 
investors did not like what 
they saw ahead. 

In Intel’s case, it was con- 
cern about long-term demand 
for personal computers that 
brought the stock down, while 
Compaq’s shares fell because 
Investors believed that an 
increase in inventories daring 
the second quarter was a 
warning that sales were begin- 
ning to slow down. Sybase 
shares tumbled because the 
market was worried about a 


possible easing off in the sales 
growth of its core database 
products, and United Technol- 
ogies suffered from signs of 
moderate sales weakness in 
two of its divisions. 

Admittedly, there is nothing 
new in this type of reaction - 
the most basic theory of 
investing says that earnings 
news is always old news, and 
that share prices should be 
driven more by expectations of 


future, not announcements of 
past, performance- But inves- 
tors seem to have been espe- 
cially harsh on stocks In this 
reporting season. 

The most fikely explanation 
is a broader underlying cur- 
rent of concern about the econ- 
omy as a whole. Although it 
has been growing more rap- 
idly than expected this year, 
most Wall Street analysts 
believe it will slow down fn 


the second half and beyond as 
the impact of higher interest 
rates begins to bite. And if 
economic growth is about to 
slow, that means sales of com- 
puters, cars, washing 
machines, and much more, are 
likely to do the same, spelling 
bad news for US companies. 

Yet, the fear that economic 
growth is going to slacken 
does not necessarily have to be 
an entirely negative influence 
on share prices. The stock 
market has had a difficult 
1994, mostly because of the 
sharp, and unanticipated, rise 
in long-term interest rates 
since early February. Rates 
bave been climbing steadily 
from historic lows because the 
bond market is worried that 
the rapidly-expanding econ- 
omy will lead to higher infla- 
tion. 

If, however, economic 
growth is about to stow down, 
anxiety about inflation should 
begin to ease, allowing inter- 
est rates to come down and 
share prices to go up. 

The bullish stock market 
forecasters on Wall Street who 
are predicting modest, low-in- 
flation economic growth and a 
second-half rally in stocks sub- 
stantial enough to push the 


Dow Jones Industrial Average 
over 4,000 for the first time, 
certainly believe in this rosy 
scenario. Tbe only problem is, 
their confidence is not shared 
by the person that matters 
most - Federal Reserve chair- 
man Alan Greenspan. 

Giving his semi-annual 
Hmnphrey-Sawkins testimony 
before Congress this week, 
Greenspan said he remained 
concerned about rising prices 
(particularly tn view of the 
recent decline in the dollar 
against the yea and D-mark), 
and warned that farther 
increases in shortterm inter- 
est rates might be required. 

The warning was enough to 
knock almost a full point off 
the price of a 30-year Treasury 
bond and 20 points off the 
Dow. Greenspan's threat of 
higher rates also is likely to 
keep a lid on share prices for 
the rest of the summer, no 
matter how good quarterly 
earnings prove to be. 

Patrick Harverson 

Monday 3755.43 + 01 JS4 

Tuesday 374SJJ1 - 07.12 

Wednesday 3727-27 - 21. 04 

Thursday 3742.45 + 05.18 

Friday 


J ohn Robb. Wellcome's 
suave Scottish chairman 
and chief executive, 
claims he is not overly 
concerned about his company’s 
share price which has more 
than halved since 1992. 

Tve given up complaining 
about it,” he insisted unconvin- 
cingly on Thursday as he 
explained the group's latest 
results- He then spent five min- 
utes lamenting that the com- 
pany was undervalued. 

Still Robb should be pleased 
with the reaction to this 
week's results. In March last 
year, when he announced a 
33 per cent rise in pre-tax prof-' 
its, he watched his share price 
plummet 97p in two days. 
Since this week's announce- 
ment of a 12 per cent rise in 
pre-tax profits to 2182m for the 
four months to June 30, the 
shares actually climbed - up 
19p to 634 p. 

The reasons for the shares' 
rise were not hard to fathom. 
Wellcome's underlying sales 
growth was impressive given a 
difficult environment 
Sales of Zovirax, Wellcome's 
anti-herpes drug and the 
world's fourth best-selling med- 
icine, rose 17 per cent. Growth 


Bottom Line 

A welcome from investors 


Weneoma/SmKhKIflrie Beecham 


Shard price rebave to the FT-SE-A AB-Shara Index 

200 - — — 


Weflcorae 


200 ■ ~ 


150 



in the US was 27 per cent And 
European sales were up 9 per 
cent, in spite of price cuts in 
Italy and France. 

The question is whether 
Robb can sustain above- 
average growth. Even In tbe 
short-term, 27 per cent Zovirax 
growth in the US is clearly 
unsustainable. Robb said Ids 
objective was continued 
double-digit growth. The main 
threats to that goal are all 
directed at Zovirax, by far and 
away his biggest product 

The first threat is from 
SmithKline Beecham, the 
Anglo-American healthcare 
group, which Is in the process 
of rolling out Famvir. the first 
direct competitor to Zovirax. 
The company has already 
launched it in the UK and is 
about to challenge Zovirax in 
the US. 

"Famvir doesn't keep me 
awake at 3 o'clock in the morn- 
ing,” said Robb, Dr David 


Soune FT Grepbte 

Barry, Wellcome's newly- 
appointed director of research, 
development and medical, 
pointed to the details on Fam- 
vlr’s US package insert, 
describing the effectiveness 
and risks associated with the 
drug. 

Rather than Famvir, the big- 


gest threat to Zovirax is its 
patent position, its patents In 
Germany have already expired, 
and those in the US and UK 
end in 1997. 

Robb admits he cannot duck 
this. But he has a defence 
strategy in place. The first ele- 
ment is a joint-venture with 


Warner-Lambert, one of the 
most powerful US non-prescrip- 
tion medicines groups, to mar- 
ket the product over the 
counter. This should signifi- 
cantly extend Zovirax’s prod- 
uct life, generating additional 
revenues, admittedly at a 
lower margin than in the pre- 
scription market 

In addition, this month. Well- 
come filed the regulatory dos- 
siers in ifl countries for Val- 
trex, a successor to Zovirax, 
which Robb claims is more 
effective and just as safe. 

Nevertheless, some analysts 
wonder whether the difference 
will be sufficient for cost-con- 
scious health organisations to 
pay significantly more for Val- 
trex than an off-patent version 
of Zovirax. 

If Robb wants an example of 
what can happen when a sig- 
nificant product's patents 
expire, he need only look at the 
other main set of results in 


pharmaceuticals this week. 

SmithKline Beecham has 
been overshadowed by a sig- 
nificant patent expiry for yeare 
and in May, the US patents for 
Tagamet, SmithKline Bee- 
cham ’s biggest drug last year, 
ceased to be protected from 
low-price generic competitioa 

As he announced his second 
quarter results on Tuesday, 
Jan Leschly, chief executive, 
feasted the 9 per cent detife® 
In Tagamet rales did not repre- 
sent the full impact of the 
expiry which had occurred 
only half way through the 
period. It was far worse, he 
said. 

The reason for such candour 
is that the pain from Lescbly’s 
patent expiry is almost over. 
instead, Leschly wants inves- 
tors to concentrate on hto 
newer products - up 81 per 
cent year on year r and . his 
$2 Jbnacquisition of Diversi- 
fied Pharmaceutical Services. 

As Robb fights to protect his 
herpes franchise, Leschly can 
look on with some smugness. 
He ban been through the expe- 
rience awaiting his counter- 
part at Wellcome. 

Paul Abrahams 



It i 


»' M, V N 

"ho 

c 11 P fr 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


WEEKEND FT HI 


FINANCE AND THE FAMILY 


W e are almost a week 
into rolling settle- 
ment, the new stock 
exchange system for 
paying for shares - 
yet many brokers have not prepared 
for some of the changes that are tak- 
ing place. They have concentrated on 
encouraging clients to move into 
nominee accounts, where the stock is 
registered in the name of the broker's 
nominee company instead cf the ch- 
eat himsel f. This makes administra- 
tion much easier for the broker, and 
some clients also prefer having less 
paperwork to cope with. 

Ot her is sues - such as penalties for 
late payment and fodhties for allow- 
ing margin trading (lending money to 
clients to buy shares) - are appar- 
ently being treated on a “play-ttby- 
ear" bads. Indeed, one of the 20-odd 
brokers to whom we spoke suggested 
delaying this article for a month - by 
which time, be said, his firm hoped to 
have formulated its policy. 

■ Nominee accounts 
Ten-day settlement — also known as 
T+10 - is only the first step towards a 
foster settlement process. The stock 
exchange inten d s to bring in five-day 
rolling settlement next year. At the 
mo men t, a gap of 10 working days 
still allows enough time for cer tify 
cates to pass back and forth, between 
broker and client when the latter 
decides to deal, ft is, however, diffi- 
cult to see how this will be possible 
under the shorter-time frame of T+5. 
Nominee accounts are then likely to 
be the only way the majority of pri- 
vate clients vriR be able to deal. 

Nominee accounts are used already 
for an personal e qui ty plan holdings. 
Most brokers operate both pooled and 
designated nominee accounts. Fooled 
nominees group together sharehold- 
ers, and the only name that appears 
on the register Is that of the nominee 
company. In a designated nominee, 
the broker’s name and the client’s 
designation - usually a number - 
appear together (m the company reg- 
ister and this should ensine that the 
investor retains shareholder benefits. 

Seme brokers - including Broad- 
bridge, Butterfield Securities, Dunbar, 
Boyle & Kingsley. Fidelity Brokerage, 
Fyshe Horton Finney, TvtTTtV, Share- 
market and Shaw & Co - operate des- 
ignated nominees only (other f*um for 
Peps, which are in pooled nominees). 

Surprisingly, ffharpT.tnk the execu- 
tion-only dealing service, has not yet 
put in place a nominee account for its 
ifanTing customers, although it says 
plans- are under way. It operates a 
pooled nominee for Pep and new. 
issues customers. 

■ Penalties for late payment 
Understandably, brokers are stressing 
toe need for prompt payment. IT, after 
10 days, a client’s cheque does not 
dear, the broker is left holding the 
shares. Some brokers say they will 
charge the client interest - the figure 
mentioned most often is 3 to 4 per- 
centage points above the present base 



Brokers take the easy path 

Scheherazade Daneshkhu and Bethan Hutton on the progress of rolling settlement 


rate qf 5^5 percent 

Others may also charge a fee. Shaw 
& Co. says it reserves the right to 
charge a late-dehvery penalty of £S a 
day an top of am i n t e res t rate of 4 
percentage points above toe base rate. 
It warns that if stock remains unde- 
livered for 10 days, all costs and 
charges incurred will be debited to' 
the client’s account. 

Others have no penalties for late 
payment at toe mnnumt. James Capel 
said: "We wait to see how the market 
deals with late payment and what reo- 
mn pgnsp we shall be seeking." 

Rrewin Dolphin Bell Lawrie is 
waiting, until September before bring- 
ing in late-payment penalties; thin 
will allow clients to get used to 
raffing settlement. But it could charge 


up to 5 percentage points over toe 
base rate after that 
hi ggnpy Bl . execution-only brokers 
will charge hi gher penalties than 
advisory brokers. Fidelity says it win 
charge 10 percentage points above 
base rates while ShareLink could 
charge Interest at 15 per cent APR 
and make an « ^ n i in fei rai i m charge of 
up to £40, as well as selling the shares 
involved and using the money raised 
to settle the amount owed. 

The Trtng-based Share ’ Centre wfl! 
not buy stock unless the client 
already has enoug h nyij qr In bis 
account to pay for it " ’ 

■ Eg extended settlement possible? 
Yes, although it is up to market-mak- 
ers - dealers who set the price for 
stocks - to accommodate brokers. Cli- 


ents most likely to want extended set- 
tlement are speculators. 

g ariier this month Smith New 
Court, the securities house, said it 
would Morowmodatn brokers request- 
ing special settlement after T+10. (Set- 
tlement is the process by which 
shares are delivered to a b uy er in 
exchange for delivery of payment). 

In other words, a chant who wants 
to settle on T+ll might be able to do 
so if he tells his broker when he 
places the order. 

Brewin Dolphin Bell Lawrie says: 
“Clients can request to deal for spe- 
cial settlement Any price differential 
will hn a matt er far Hw markat-wifllrer 

- we will not charge extra for such a 
bargain.” Williams de Bros says it 
expects to be able to improve on 


What you can 
expect to pay 


taring offered by others. 

Sharniwr k^ the hfanchestep-baRed 
execution-only broker, is maWng 
extended settlement a feature of its 
service. It will allow clients (at its 
discretion) to roll over each 10-day 
MWwnwit transaction for another 10 
days, subject to certain toms. But 
other brokers such as Dunbar, Boyle 
& Kingsley and Albert E. Sharp say 
they w ill not allow extended settle- 
ment. 

■ Margin trading 

Most brokers say they are thinking 
about this, but few have come up with 
concrete plans. Williams de Bros, 
Shaw & Go* B u t t ar fl ald and the Share 
Centre are among those offering mar- 
gin trading to selected clients 


Nominee account charge? can 
be confusing. The most 
common charging method is a 
fixed fee for each stock held, 

payable on a quarterly or 
half-yearly basis. THs often 

covers the whole nominee 
service, but sometimes there 
are additional charges. 

These cover such things as 
transferring shares into or out 
of the nominee account, 
collecting fflrtdesds* preparing 
valuations or tax certificates, 
passing on animal reports or 
other company documents, 
arranging attendance at 
annnal general meetings, or 
benefiting from shareholder 
perks. Holding overseas shares 
in a nominee account is 
usually more expensive. 

A few brokers make no 
charge for the nominee service 
- but make sure this is not 
balanced by higher dealing 
costs or other charges. Users 
of execution-only services are 
more likely to he charged for 
nominees than discretionary 
or advisory clients, who 
usually pay higher charges 
elsewhere. 

Some brokers reserve the 
right to make a charge for 
company reports or AGM 
attendance, but do not 
necessarily impose tt. 

Many of the mass-market 
share dealing services take an 
all-in approach to nominee 
charges. Barclays 
Stockbrokers has differemt 
wruntna^ eharg ns d npamWng on 
whether you are an 

execution-only or advisory 
client, but provides the same 
pooled nominee service for 
both. 

This includes half-yearly 
valuations, composite tax 
voucher, company reports and 
accounts* most shareholder 
perks and voting rights. 

Advisory clients pay £1 a 
stock each quarter (mfanmnm 
£25) for the foil service; 
execution-only clients pay 75p 
a stock each quarter 
(minimu m £9) for the same 
service. Dealing charges are 

Fidelity Brokerage, which 
has about 25,000 
execution-only customers, 
registers all purchases 
automatically into a 

dpgiynatud wnmbigp iiwwmrf 

hot makes no charge for the 


nominee, which includes the 
foil range of services. The one 
exception is a £20 charge for 

re-registering shares into 
another name. Leeds-based 
Broadbridge does not charge 
for nominee accounts, and 
dealing charges are the same 
whether or not a nominee is 
used. 

At the other end of the scale, 
t^e more exclusive Williams 
de Bros includes a nominee 
service in the annnal fee for 
Ms discretionary and advisory 
portfolio management sendee* 
bat execution-only clients are 
charged £3 a stock held in the 
nominee account each quarter, 
plus an extra £3 per dividend 
collected, £5 for tax 
certificates, and other charges 
•for transfers out of the 

l yiminpp. 

James Capel charges 
advisory clients £15 a stock 
each quarter for its nominee 
package, In addition to a £250 
qimnai administration charge 
for each portfolio. 

Most brokers have not yet 
altered their nominee 
charging structures In 

response to rolling settlement 
but some, which until now 
have not charged for nominee 
accounts, may start once 
larger numbers have opted for 
the service. 

One is Albert E. Sharp, 
which says: “We do not charge 
advisory dealing clients for 
nominee accounts, but are 
reviewing this policy and may 
decide to do so in due coarse." 
Before yon sign np, it is worth 
ftgfctng any broker how long 
the charging structure Is due 
to be in place. 

Dealing charges are 
sometimes different, 
depending on whether you are 
using a nominee account as 
well as whether you are 
dealing on an execution-only, 
advisory or discretionary 
basis. 

Dealing with in-house 
nominee acconnts is usually 
easier administratively for the 
broker, so not using a nominee 
could make dealing more 
expensive. Butterfield 
Securities charges 
non-nominee customers an 
extra £10 a deal, and James 
Capel has a £25 “delivery fee" 
for nan-nominee advisory 
clients. 


investors 


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Europe 

The right time to invest 
The right investment company 
The right fund 


Henderson Touche 
Remnant cakes a positive 
view of investment 
prospects in Europe. 
Economic recovery in 1994 
should lead to significant 
growth in 1995. 

HTR European Special 
Situations Fond is heavily 
growth orientated, and 
aims to buy shares that are 
substantially under priced. 
It ts also highly flexible, 
enabling the manager to 
buy value wherever he can 
find it — he is not tied to 
investing set percentages of 
the fund in each of the 
European markets or 
into any particular 
industrial sectors. 


"Henderson Tooche Remnanl* 
rrjnrsmB products and semccs offered 
by Hodenon Touche Remnant Unit 
True Monogrmr nt Limited, member oC 
1MRO. LAUTRO and AUT1F. and 
Henderson Financial Management 
i tmtied member of B4RO. Pats perfor- 
mance b not utmitinly a yddc to the 
future. The value of units and tbe 
income from than con go don as vteR 
niipoi remit of market and currency 
Bneio a riom and tbe investor my not 
get back the amount originally 
Invested- Taxes retadag 10 PEP* may 
change IT the tew changes and the value 
-of tax relief will depend upon eke 
ctaattnamcES or ike Investor. Scheme 
particulars and the blest Manager's 
nqport arc avnQabtr &wa tbe Manager. 



HTH European Special Situations Fund hie a very 
Impressive long term performance record. 
(Source: Mkrop td. offer to bid wiffi net Income 
reinvested, to 1.7.94) 



Recent setbacks on -world 
markets have depressed 
European share prices, 

making r l y t ic ms buying 

opportunity. 

Henderson Touche 
Remnant’s credentials in 
this area are excellent - we 
arc already responsible for 
continental European 
investments worth over £1 
blffiott. We believe that this 
is the right time to invest 
and we have the right fund. 
HTR European Special 
Situations has a highly 
successful track record, 
well within the top 10% of 
all European unit trusts 
since its launch in 
February 1987. 

Further 

Information 

For full details of HTR 
European Special Situa- 
tions Fund: 

★ Speak to your usual 

Rinnrial a< b i< f T 

★ Re earn the coupon, or 

★ Call us free of charge 
cm the number below. 


1934 


To: HTR investor Services Department. FREEPOST, POBmc 21 6, Aylesbury, Buda H7201DD. 
Please send me Asads olihe HTR European Special Saunkms Q FUND □ PEP. 


1994 


t usual Bsa&eial advocr to: 

Imbed by HcndcHOs Mmoriil Itagaat Umfaed, j Finsbury Avenue, London EC2M 2PA. 
A member of IMKO. 


Lwmmmmd 







IV WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/ JULY 24 1994 


FINANCE AND THE FAMILY 


Glaxo shows how options magnify movements 


Share price (pence) 
500 - — 


Options January 600 cafl 


550 — - 



100 


Mu 1 - 90 


540 -M7— 


June 19M 


Juno 1004 


Prices rabased 

100 


150 



SOURS* LFFE 


S peculators face a potential 
blow under rolling settlement, 
the new stock exchange 
method of paying for shares 
(see page HD- Under the old system of 
account trading - which covered 10 to 
15 per cent of stock market deals - 
they could buy and sell shares for a 
quick profit without having to put up 
any money or take physical posses- 
sion of them. Now, each deal will 
have to be settled - either in cash or 
share certificates delivered - 10 busi- 
ness days later. 

What, then, should the speculative 
investor do? He has two natural 
choices. One is to engage in margin 
trading, borrowing money to buy 
shares. The other - to which Liffe, the 
London derivatives exchange, hopes 
investors will turn - is traded 
options. T.tfrft marg in trading, buying 
traded options is a geared investment; 
you make more money than you 
would in the underlying shares if the 
share price moves in your favour - 
bat you can lose everything if it 
moves against you. 

A buyer of a traded option has the 
right, but not the obligation, to buy or 
sell particular shares at a fixed price 
at any tune up to a specific expiry 
date. Calls (the right to buy shares) 
and puts (the right to sen them) are 
available in 70 different companies, 
with a range of different prices and 
periods available for each. 

Traded options relate mainly to 
FT-SE 100 companies and most are 
traded only in blocks representing 
1.000 shares. There are also traded 


The options option 


Peter John has some advice for stock market speculators 


options in the FT-SE index itself. At 
the moment yon can, for instance, 
buy Glaxo options which expire this 
month (July), or in October or nest 
January. The share price is around 
580p; available options give you the 
right to buy at, Cor example, 550p or 

600p. 

Not unnaturally, you pay for this 
right An option lasting until October, 
and which gives you the right to buy 
at 600p, will cost 26’, 4p - but one for 
the same period, giving the right to 
buy at 550p. will cost 54p. If the Glaxo 
price remains unchanged daring that 
period, the 600p option will expire 


worthless while the 550p one has 
intrinsic value of around 30p. But if 
the sham price slips to, say, 5fi0p, that 
intrinsic value will be cut to ldp. 

The point about traded options, 
however, is that you can buy and sell 
the option itself - you do not need to 
use it to buy the underlying shares. 
So, if the Glaxo price were to move up 
smartly, the options probably would 
rise even more sharply and you could 
take your profits by selling the 
options. 

Here is a real example of what 
might have happened. Say. earlier 
this summer, an investor noticed that 


pharmaceuticals had underperformed 
the broad London market and that 
Glaxo had done particularly badly. 

on June 27, Rhtn shares had 
underperformed the falling market by 
13 percentage points over the previ- 
ous six months and stood at 533p. 

One response could have been to 
buy 1,000 shares, to that case. £5,333, 
which could be earning interest in the 
building society, would have been tied 
up- Alternatively, a January 500 call - 
that is, the right to buy the shares up 
until January 1995 at 500p each - 
would have cost 63%p a share, or 
about £635 (plus costs) tor a contract 


Where to find the guidance you need 


Trading options is only for 
knowledgeable investors with deep 
pockets. Tbe problem is that in-depth 
Information is not available as 
readily as that for shares. 

The London International Financial 
Futures Exchange (Liffe) has a help- 
line* and will provide a starter pads 
that includes a newsletter, a list of 
about 50 broken, a slim guide book, 
and a programme of seminars which 
costs b etween £9 and £12. After that 


however, you are out on your own. 

The next stage is to contact a bro- 
ker although only about a dozen, 
such as Kffllk & Co„ give advice on 
strategy. But Graeme Hatch, die head 
of E3Uk*s traded options team, warns 
dial unlike share portfolios, which 
can be left in the care of a broker, 
options are too risky to devolve. 
“They are far too volatile and specu- 
lative to leave to a broker, and people 
should follow them closely," he says. 


For more confident investors, there 
are execution-only brokers which wifi 
charge less but provide no specific 
advice. The most well-known is prob- 
ably SbareLthk, of Birmingham. 
ShareLmk will send out an informa- 
tion pack similar to LUfe’s and a reg- 
ular newsletter. After that, it can teH 
a client nothing more than die prices 
and the spreads. 

*For Lim’s help-line, coll 071-379 2933} 
2255. 


The 63Kp option price (known as a 
premium) is node up of two elements: 
intrinsic value and tune value. Intrin- 
sic value is the amount by which the 
option is below the underlying share 
price. (Not all options have intrinsic 
value). Time value is the difference 
between the intrinsic value and the 
actual cost of the option. Working it 
out involves a complex mathematical 
formula but, essentially, the lon ger 
the option's period, the greater the 
time value - because the chances of it 
acquiring Intrinsic value in the 
interim me greater. 

The intrinsic value rises or falls 
with the value of the shares. But it 
exaggerates the movements in the 
underlying share price. The time 
value does not decrease in a straight 
line in proportion to the time 
involved. Often, it remains relatively 
high until shortly before expiry, espe- 
cially when the market swings the 
way it has done recently, to fact, by 
Wednesday this week, Glaxo shares 
had reached 584p and the price of 
Glaxo January 500 calls was 96p. An 
investor could have sold the £635 con- 
tract for £960. 

The two main advantages of calls 
over shares is that (a) they are a 
geared play offering the potential for 
much greater gains, and (b) the 
amount that can be lost is limited to 
tiie cost of the option. Puts operate in 
the same way as calls except that 
they allow investors to SELL shares 
at a fixed price up until the expiry 
date. They allow investors to insure 
or hedge against foils in the market 


Directors’ transactions 


Betterware 


Sham (vice (pence) 
300 


JR Lloyd 

135,600 at 245-250p 


DIRECTORS’ SHARE TRANSACTIONS IN THEIR 
OWN COMPANIES (LISTED & USM) 


SOLD 10/6.53 


250 - - J 


SS Cohen (Vice chapman) 
7,000.000 at 230p 
AL Cohen (MD) 6.300,00 0 at 230p 


Company 


Sector Shares 


No of 
draetom 


BOUGHT TG/S/M 


RC Thornton 1 00,000 at 230p 


4 jb 

% m 

I WK 

pc 
■ TA 


BOUGHT ail •93 


SALES 

Bodycote Eng 

British Bloodstock AgencyOS&B 

Chrysalis L&HI 

Lonrho Dhrf 

Osborne & Little HGod 


41.000 

30.000 
11X279 

135.962 

40.000 


,000 at 196p 
JR Lloyd 400,000 at 196p 


WK Goldsmith (Chairman) 15,000 at 142p 
PC Hartley (FD) 10,000 at 142p 
TA Hockley 6,000 at 142p 


BOUGHT 30/12-4/1/9-; 


WK Goldsmith 10.000 at 132p 
JR Lloyd 2297 at 142p 


BOUGHT 5-13/7/34 


89 ISM 1891 19BZ 1998 94 WK Goldsmith 19,150 for PS* at 92p 
Source: FT Graphite/ OirEcfua A Cohen 19,700 fpr PEP st 88p 


Always look at directors' dealings in context The recent 
small purchases, totalling E35JJ00, by two directors of 
Betterware are insignificant when compared with sales worth 
£30.6m by the Cohen family In June 1983. The shares had 
tumbled by 60 per cent between the Cohens’ big sale and the 
recent purchases - and have fallen even further, to just 76p. 


PURCHASES 

Anglo Eastern Plantations. OS&B 

Asprey RetG 

Betterware (Pap) RetG 

British Bloods t ock AgencyOS&B 

Brunner __ InvT 

STP Cham 

General Electric Co (Pep)_EE&E 

low & Boner (Pep) PP6P 

Lowe (Robert H) (opn oh). Text 

MSG Group OthF 

Orb Estates _ Prop 

Roskef (Pep) BM&M 

Royal Bank ot Scotland Briks 
Scottish Mortgage & Trust— InvT 

Smith New Court OthF 

Triplex Lloyd Eng 

WEW Group RetG 


66.300 

375,000 

19.700 

30.000 
5,256 
6,166 

11,764 

6.000 

10,655,907 

25.000 
0.358200 

11.700 
2,500 

18400 

12413 

10.000 
75,000 


Value expressed to EDOOa. Thb Bst contains al t ransacto rs. Including itw exercise of 
options n if 100% subsequently sold, with a value over £10800. In te rmato i irtarnrl by 
the Stock Exchange July 11-15 1994. 

Source-. Okectus Ud. The Inside Track, feSnbtrgh 


Carbon paper. 


The vinyl LP. 


Account trading 


Equity options 

can help you replace one of them. 


Free 



It isn't always obvious, but change tends to bring opportunity right along with it. 


For tbe private investor, the transition from account trading to roiling settlement is 
just such an opportunity. Specifically, it’s the right time to take a serious look at 
equity opticas. 


Equity options offer you a powerful tool for portfolio risk management, generating 
income from a shareholding and limited risk speculation. 


information pack 

call 071 379 2486 



Equity options Ore not right for every private investor and it is important that you 
take time to understand prope rly th e products before using them as part of your 
investment strategy. So call LIFFE today for your free information pack. 


It is important that you understand the risks 
involved before you make use of equity 
options- Writing uncovered options can result 
in substantial losses. 


Cannon Bridge, 
London EC4R 3 XX. 
Tel: 444 71 623 0444 
Fax +4471 246 5364 


LI FF( 


The London International Financial 
Futures and Options Exchange 



John Asprey, chamnfln Of the 
famous London jeweller, made 
the largest transaction of the 
week when he bought 375.000 
shares on behalf of the family’s 
trust fund. But since the fam- 
ily already owns more than 50 
per cent of the group, the deal 
accounts for a very small pro- 
portion of its stake. 

□ Orb Estates used to be 
called Ossory and had consid- 
erable success early in the 
1990s when its shares traded 
around 45p. Since than, it has 
made substantial losses and, 
most recently, director William 
Higgins was able to buy some 
stock for his pension fund for 
lp. Earlier in tha month Mil- 
lash. Ltd. a company in which 
Higgins has a sizeable interest, 
bought 5m shares, also at Ip. 

□ The share price at Chrysalis 
Group, a music com pany , has 
had an outperform an ce of 
more than 130 per cent against 
the market over the past 12 
months. The company is expec- 
ted to show a smaller loss this 
year than last and record a 
profit in 1995. Non-executive 
director Charles Levi son has 
proved an astute investor 
already, buying stock at 68p 
last summer. In his most 
recent transaction, he sold half 
his holding at 170p. 

□ Directors at wallpaper- 
maker Osborne & Little have 
also seen their share price out- 
perform the market over the 
past 12 months - in this case, 
by 189 per cent! Two directors 
have sold stock within the past 
month, most recently chair- . 
man Peter Soar who disposed 
of 40,000 shares at 389.5p. 

Vivien MacDonald 
The Inside Track 
■ Small businesses. Page VZZ7 


RESULTS DUE 


Tito year 


Attaint Scotland Inv Oo . 

InTr 

Monday 

- 

- 

- 

Attaint Prtowrad Inc — 

InTr 

Wednesday 

• 

- 

3281 

Banks (SteayC) 

Fcftte 

Thursday 

4j0 

2.0 

05 

Bkfatov Group 

,, , , 

Wednesday 


- 

- 

Cons Ifentaw 

Bin 

Tuesday 

* 

- 

- 

Dalapak Foods 

FdMS 

Trnacty 

1 & 

AS 

05 



BdMs 

Wadneeday 

ZO 

3 JO 

1 £ 

Bootrlc & Gonsral kw — 

faTY 

FYfaqr 

U 

AS 

tJBS 

RagahawHUga 

Prop 

Friday 

- 

- 

- 

Hankie EmnsfaB Mkt* . 

WTY 

Wednesday 

- 

- 

- 

Gonad Inchw Tat 

InTr 

Tuesday 

- 

- 

2 ms 

GBibaUow 

Brew 

Tuesday 

3J> 

AS 

075 

Govatt American Smabr InTr 

Thursday 

- 

- 

. 

Govatt Esnratag Nfcta InTr 

Wecfaesday 

- 

- 

- 

Jareay Pkoenfa Tat 

OttPn 

Thuaday 

125 

1JS 

12 S 

John Lusty Group 

Dtp 

Frtory 

- 

- 

- 

Mnrtfag Industries 

Taa 

Monday 

- 

085 

02 



SSL 

Tueedey 

2JH 

4A 

3JJ 


_swac 

Monday 

W 

OO 

1 J) 

MUe Group 

— rto 

Ufnrtnnu-i-u 

vimny 

1 5 

20 

2J3 

Murray Sinator Mkta TIP . 

taTr 

Tuesday 

1-35 

235 

142 

PEX 

T«J 

Iftf/tatnilnrtaH 

mpjruxjs)’ 

- 

- 

- 

Prior 

Prep 

TTusday 

- 

- 

- 

Radtant Mstai Hn 

fine 

Friday 

. 

- 

_ 

Rubicon Group 


Wecfaesday 

25 

- 


SMetd Grtsm 

Wfl 

Wecfaeaday 

- 

- 

_ 

STngnmarii Mdga 

Tran 

Tuesday 

m 

- 

1.5 

Syfeta (Andrew) Qroim __ 

BSC 

Friday 

1-4 

343 

. 

m BtnsBar Co knr Tw — 

InTr 

Friday 

15 

23 


Uniaech 

ESS 

Thursday 

ZA 

4J0 

224 


Ayrshire Natal Products — 


BAT Into 


Brfifah Tetoconr 

Brfough 

CttofMn Group 

Cfctarf Computing 

Cgr tin o uarf Asam Trt , 

Corrtra CycScrf tn» Tat — 

Dental Bui System 

Dortry Trust , 

Rantog Redgeang mv 

Garbiwo Br Inc A Growth 
GtoredhcbnrTat _ 

Oroeo Property 

Gregg* 

K3 _ 

Jacobi (John I) 

Ux Sente* - 

Lkyda Abbey Ub 

Uowta Bat 

MS Dual Tat 

MOgata 

Motor World Group — — 
Many Sptil Cap Tat 


Ramsdetfa (Harry) 

nautara — - 

Righto A bsuaa hr 

Scottish Hal Tct 

S faw daric k „ 

Spargo Coa atotog 

S pnd aieya u 

Sphere Inv Tat 

St Andrew Treat 

Standfad PWfarma Mdgs . 

TR Far East Inc Tst 

Twnjto Bar kw Tat _____ 
Thornton Aafwr Emer MkX£ 
Wftunlmr - 


MY 

InTr 

InTr 

InTr 

Prop 

rVa 

Chen 

- — Tran 
— — Dot 

LfA 

Bank 

— -InTr 

— n/a 

EngV 

MY 

Hth 

LaH 

Mad 

MY 

MY 

Med 


WsdnaadBS* 

Thtrsday 

WMrmdaytt 

Monday 

Thursday 

Monday 

Tuesday 

Thuaday# 

Thwadoyt? 

Thursday 

Thuaday 

Tuesday# 

Tuesday 

iluaday 

Monday 

Thuaday 

Thuaday 

Wednesday 

Wednesday 

Friday 

Tuesday 

Wednesday 

Thuaday 

Wednesday* 

Ttusday 

Mcrfisy 


Tuesday 

Wedn esday * 

Tuesday 

Wednesday 

Wednesday 

Thuaday 

Muiday 

Wettnadaw 

Friday 

Tuesday 

Wetoaaday 

Tlanday 


TkvMan* are mown net pence per aha* and are arguned far any rtavunfag scrip Issue. 
Hapuib and aeccuto are not nonntoy aMfabfe und about 6 weeks after the bawd meeitH to 
anrao ptomnary re*** B 1st qiarfariy. ♦ Bid quatariy. * 3rd Ouanarty 


The week ahead 


Imperial Chemical Industries, 
the UK’s biggest chemicals 
group, reports second-quarter 
results on Thursday. Estimates 
range from £110m to £i30m 
against £96m. Most observers 
are bullish about prospects. ICI 
is benefiting from its exposure 
to the buoyant US and Asian 
markets, and the UK recovery. 
The only fly in the ointment is 
the European continent, but 
US groups have even noted 
some upturn in demand there. 

□ Renters Holdings, the UK 

financial Infor mation and news 

group, will emphasise its inter- 
national and high-tech creden- 
tials on Wednesday by present- 
ing interim results in New 
York. The meeting will be 
transmitted live by satellite to 
London, where analysts expect 
pre-tax profits of about £245m 
for the six mouths to June 30, 
compared with £215m last 
time. 

□ BAT Industries, the UK- 
based tobacco and financial 
services group, is expected on 
Wednesday to ann ounce an 
increase in underlying interim 
profits to about £90Gm before 
tax, although the range 
stretches from about £88Dm to 
£92Qm. Last year's figure was 
£902m, but that included a 
£123m exceptional profit from a 
brand swap deal with a US 
company. Growth is thought to 
have been stronger in the sec- 
ond quarter, driven mainly by i 

insurance rather than tobacco. I 

□ Lloyds is the first of the 
British clearing banks to 
report its interim results (on 
Friday) although the outlook is 
affected by uncertainty over its 


Rooters 


Share price refeiflve to the 
FT-B&AM-Shens Index 

200 — — 

190 — 

180 — 

170 1 

iiiS 

120 J 

1__ 

1991 02 S 

Sowck FT GrepMSa 


proposed £i.8bn acquisition of 
Cheltenham & Gloucester 
building society. Prefax profits 
of about £850m are expected 
althou gh the figure Is uncer- 
tain because it will be affected 
heavily by how much the bank 


gains from releasing bad debt 
provisions. 

□ Interim results from Lloyds 
Abbey Lille, the life insurance 
group, on Wednesday are 
expected to show pre-tax prof- 
its of £i64m to £i76m for the 
six months to June 30 
(£152£m). Interim dividend is 
expected to be between 6.5p 
arid 6.7p (&3p). Acquisition of 
new life and pensions business 
will have been difficult, espe- 
cially given, the emphasis pat 
on training the sales force. 

□ Growing vehicle sales and 
an exceptional gain on the dis- 
posal of the Appteyard motor 
dealer group should lift 
interim prefax profits at Lex 
Service, the UK’s largest car 
distribution and leasing group, 
to around £31m (£21 ,2m) under 
FBS3. Analysts expect underly- 
ing profits of about £24m when 
the group reports an Tuesday. 


PRELMDNARY RESULTS 


iu,.j • ; 

1 0 1 ;\ I 


Oonpaiv 

Sector 

Ykar 

to 

Pre-tax 

prtOt 

pawn 

Canrinus* 
par ahara 
W 

Dtiktmds* 
par Mm 

M 

MMQrocv 

&0 

4pr 

IjOlO 

ft52t» 

42 (178) 

45 

F-5) 

Batoya 

tto 

Apr 

5,740 

•BJ530) 25J04 (28JB) 

• 

H 

Dre-tof 

Eng 

K* 

910 

(77® 

184 (0 SO) 

083 

psi) 

BacteMtotoi 

Rup 

Apr 

238 

A330 U 

02 H 

• 

H 

CoWn&Fowiar 

HseG 

A*r 

331 

(308 L) 

OB H 

18 

(18) 

CtaigMon Nakaa^r 

HsbG 

Mw 

UHO 

fijoot* 

U2 (139) 

7.7 

(72) 

Dan B^wfan 

CE 

DactJ 

18 L 

(122DJ 

- (1583 

- 

H 

OM 

Tad 

H* 

257 L 

PB2l) 

H 

- 

H 

Eve Group 

BSC 

Mar 

3900 

(4.150) 

254 (Z7.q 

118 

flOjO) 

Hret TadaMfogy 

EnsfV 

Afk 

4.100 

(2/340) 1733 (ia7a 

38 

(18) 

Goode Dural 

Tran 

Apr 

10900 

(15^400 L) 

U5 H 

68 


Hwtatone Group 

Tea 

to 

70,700 L 

(8LB00L) 

H 

- 

H 

Hofan Group 

Tad 

Mar 

IB 

[7300 g 

H 

06 

pa 

InvestmetoCo 

OFn 

M»t 

508 

(444) 

313 (281) 

18 

(14 

kfcKaySecwfaea 

Prep 

Mar 

smo 

(T^OCDTOl 

7 (4JJ 

52 


MoarpafapwTat 

faTY 

May* 

162.1 

fwai) 

488 (S8fl) 

425 


Mosaic Investments 

FW 

Apr 

1900 

(wmoq 

078 f) 

- 

H 

Hobo Group 

oe* 

Apr 

UOD 

rtJ300> 1839 SBlTBD 

88 

pa 

Ocandca Group 

QE 

Mar 

1260 L 


- 

- 

H 

Pafcm Group 

LaH 

Mar 

2j510 

(BOB) 

<B (48) 

128 

(1.1) 

SroUe Gordon J 

Prop 

Apr 

5900 

R330) 

39 (14) 

22 

M 

SndttiDnddS 

PPBP 

Apr 

42200 

(27.10H 

252 PW ia75 

(HU) 

Sod&wnd Propwty 

Prep 

Mn 

Rrra> 

B1!» 

4.13 R 

24 

)42i 

TknfayBfaa 

Bp 

to ■ 

801 

(713) 

7.18 

581 

P45 

Untpeto 

ito 

Apr 

272 

P05) 

080 fLS) 

- 

H 

VIE Hoklnga 

BSC 

Mar 

3.780 

R3B0) 

88 (B 5) 

38 

B 

Viefaria Ckspet 

HseG 

to 

I960 

(508) 1982 (529 

48 

H 

TRM 

Prop 

Apr 

2340 L 

(1JBB0I} 

H 


H 

DTIBM STATEMENTS 







btorim 




Krihwar 

Pre-tax prodt dMdwxfa* 

Corepapy 

Sector 

to 


PMC) 

per share (p) 

Antoatto SreaBar 

WTr 

Jurd 


13784 

P4ZJB) 

1 J 

fL7) 

Antonatod See Wdga 

Spv 

MV 


&7B0 

pm 

- 

H 

Brewta DokpHn 

ito 

Jin 


2590 

(1320) 

18 

H 

Oown l Jackson 

RaGn 

Jui 

12,700 L 

(11/440 g 

- 

H 

Ctafala Gram 

OtFh 

Jun 


1800 

P37U 

12 

H 

Central Motor Auct 

OP 

Apr 


420 L 

047) 

08 

(14 

Etotoogh Jan Tat 

hTY 

Jutf 


469 

PI -38) 

• 

H 

Ganarri Com kw 

MY 

Juit 


ZR3 

(Z9Q8) 

33 

04 

Groeyenor Os* Cup 

InTr 

Jwzt 


1558 

(UQ^ 

- 

H 

WASlAt 

Bng 

Mar 


1J40 

(1480) 

21 

B-D 

Holders Technology 

Dtat 

“ay 


152 

(251) 

LO 

m 

fatoratots 

n/a 

Mar 


S70L 

(1890 U 050 

H 

LabyrMh (koup 

nfa 

Jut 


an 

nmu 

- 

H 

lihw# BteprisDS 

nfa 

Apr 


1,430 

(106SJ 185 

12 » 

Laefle Wfaa &oop 

Taa 

May 


1.240 

(1230 125 

128 

ML Ltoaretorias 

wm 

Mar 


953 L 

m 

m 

B 

Soottfah Americwi In 

InTr 

Jun* 


1758 

(HB.1) 289 

W9) 

Tefamefetc 

6 SEE 

Jin 


7,900 

P200) 

- 

H 

TYinl ot Property 

faTY 

Jut* 


B8-18 

0243) 

- 

« 

Vtoate UanagstDent 


Jun 

82?30 

(nm 

- 

H 

Waste Racycfaig 

0»r 

Jun 


346 

« 

w 

H 

Wafcoma 

Pfam 


488.100 

(480600) 

53 

(54 


(Rpra fa pwwrihuuuu are tar the crxraspondhg period.) 

IMderdB m shown net panos par ato*. swept wtaa oflnrete hdoefed. L = 
wiw per ifa are. 8 IWi ft*to and pm 4 US Dobs tod Cents, $ W month 
Shaw. * 8 month figures. 


loss, f IW triad 
teno-ionf 


RIGHTS ISSUES 


Dana B^loretoi fa to rate K2.17m via a 11 - 5 righto teas O Sp, 

Freeport Lotota la to rain Cl 35rtiviaa8 - 1 bsua O fiSp 

Hartstane Is » rate* ESUm to a 2 - 1 rifjfto faaua « 15p. 


OffERS FOB SALE, PLACMGS & IKTROPUCTIOWS 


s\ |lf 


Cowrighl few min 2ian via a placing & alter at 3m now toast 
HMF Hat is (o ntoe USOri to a ptaefag & open oAsr. 

Rwport Latan fa to fi4.15m via a pfadng of 7An shares O 65p. 

Waste Racydfag is to rate £58Sm to a pOdng of 8.72m ord atone 8 05p will a 3 - 5 
Gtaaback by <*£*> tfMmldn. 

Wstnao b fa tans Effim via 9 (facing &qp« «fer of SBftn otd ahem 0 38p. 


TAKE-OVER BIDS AMD MERGERS 


Bredarn Props. 
CMtarn RwSo 
Davenport Vernon 
Oast Souttwm 
Do. Pit. 


Ptoa* ki (wnoa anfasa i 


Wow (WroJ 
NMC \ 
aponrtLW) 
Spanr (J.W.) 
Tanks 
Trans world 


ur 

10 

IS 

3.70 

Stough Estate* 

242- 

26S 

205 

1980 

CLT 

187 

166 

113 

3230 

ErnnHtMiM 

8 «r 

622 

<78 

71.11 

Santo* Cotp W 

239* 

235 

180 

1629 

Sendee Corp W 

123% 

123 

96 

1201 

B8Q 

225- 

2S3 

168 

20080 

Taaoo 

159SS 

158 

159 

11380 

Britton 

n«rS 

740 

740 

4680 

l tartan 

1000 * 

740 

740 

6280 

Mattel 

285- 

271 

243 

422 

London a* 

181 

168 

173 

7080 

BMP 


•"lirr,. 




I nn ue w> pww •*' * 



FINANCIAL times WEEKEND JULY 23 /JULY 24 1994 


WEEKEND FT V 


finance and the family 


Winners and losers 

Scheherazade Daneshkhu on the relative virtues of gilts and bond funds 


I nvesting in a bond fund 
is, almost invariably, 
more expensive than 
buying gilts directly. 
Gilts can be purchased 
cheaply and easily enough over 
a post office counter from the 
National Savings Stock Regis- 
ter. But most UK bond funds 
have an initial charge of up to 
6 per cent (the table shows 
some of the present bid-offer 
spreads - the difference 
between buying and selling 
units). They also carry an 
annual charge, usually of 
about l per cent 
Gilt prices and yields vary in 
inverse proportion. While 
yields have risen, from about 6 
per cent to just over 8.5 per 
cent in the first six months of 
the year, the price of the 10- 
year benchmark gilt - Trea- 
sury 6 3 /« per cent 2004 - fell 16.9 
per cent 

Investors in UK bond funds, 
who hoped to have fared bet- 
ter, may be disappointed to see 
from the table that the average 
unit trust in the UK gilt and 
fixed income sector Cell by vir- 
tually the same amount - 16.66 
per cent (offer to bid, no 
income re-invested) - over the 
same period. 

This is despite the greater 
flexibility that bond funds 
have. Many of those in the UK 
gilt and Fixed income sector 
invest in shorter dated gilts, 
corporate bonds and preference 
shares, which are part of a 
company’s share capital and 
pay a fixed dividend. 

When yields are rising, as 
has happened in the first half 
of the year, changes in price 
are greater for longer dated 
gilts than for those at the short 
end of the market The J.P. 
Morgan UK government bond 
price Index, which covers the 
performance of both longer 
and shorter dated bonds, fell 
1L2 per cent over the first six 
months of the year - less than 
the 10-year benchmark gilt 
Bond Arnds investing in the 


short end of the market have 
bad an advantage over this 
period. The Whittingdale short 
dated fund does not invest in 
gilts with a maturity of more 
than six years and the fund's 
performance has benefited 
from this restriction. But when 
prices are rising, such as in the 
bull market of 1993, the shorter 
end of the market tends to per- 
form less welL 

Thus, the Whittingdale short 
dated fund was ranked 52 out 
of 58 by Micropal in the year to 
January 3 1994 (offer to bid, net 
Income re-lnvested), although 
it was in the top five funds 
over five and 10 years. 

Abbey Life's Capital Reserve 
fund (which Is not included in 
the table because it has only 
accumulation units) also 
invests in short dated gilts. 
With net income re-invested, it 
is the top-performing fund 
(excluding bear funds) in the 
sector, mainly because it 
switched to cash. 

Gerard Wherity. its fund 
manager, says; “We were ner- 
vous last year because we 
thought that the rise in gilt 
prices was not sustainable. 

“If we believe prices are 
going to fall, we avoid being in 
gilts. The fund has been liquid 
through fairly large chunks of 
the year, but we were more 
liquid than we should have 
been last year." 

Many private investors, how- 
ever, boy gilts for the income 
they provide. The highest 
yields of the top 10 funds listed 
were delivered by those invest- 
ing In preference shares - 
Gartmore Preference and 
Thornton UK Preference - 
with over 9.17 and &5 per cent 
respectively. 

Investors weighing the 
advantages «n<j disadvantages 
of bond funds should note that 
there is a tax drawback to buy- 
ing spits in a unit trust Gains 
are liable to capital gains tax. 
whereas gilts bought directly 
are exempt from it. 


Prices have tumbled . ... 

1 08 y* g° vafTwn * nt bondprtca jndex (Oct t, 1993=100] 



Oct 1893 • 1994 

... as yields have risen 

Twaaury ffV 4 % 20Q« rade mpMo a yields 

no - - 

7.5 
7.0 


Jill 



Oct 1993 
Source JP Morgan, Daastrsom 


1994 


Ju) 


Best and worst performing UK bond funds 



Fund 

Bid-offer 


Percntge i 

Fund 

sue (Cm) 

spread % 

Vlefd 9i change (96) ( 

TOP 10 (1/1/94-1/7/94) f 

Whittingdale Shrt-dated 

47.0 

126 

0 

-8^4 

Britannia Lf Gilt & FI 

IB 

2.01 

6^6 

-9.13 

Burrage Shrt-Oaied Gift 

1.8 

1.26 

6.19 

-ia§2 

Exeter Zero Preference 

40.7 

5.78 

0 

-10.95 

Aberdeen Gift Income 

ia23 

0 

6.51 

-12.72 

AIB Grofund Gilt 

2.75 

3.00 

5.44 

-12.85 

Abtrust Fixed Interest 

18412 

6-32 

7^3 

-13.09 

Thornton UK Pref 

14.67 

6.50 

8^0 

-1338 

Gartmore Preference 

6.60 

6.50 

9.17 

-14.30 

Rdefity Gilt & FI 

21.50 

0.95 

727 

-14.86 

BOTTOM 10 j 

Schroder Gilt & FI 

18.40 

5.15 

724 

-21.82 

N&P Gilt & FI 

0.33 

5.51 

534 

-21.78 

BG Bond 

21.47 

435 

6.64 

-21.55 

Legal & Gem Gat 

5-00 

5.70 

6.75 

-20.89 

Framlongton Gilt 

13.74 

3.03 

6.19 

‘2020 

Legal & Gen F] 

2.00 

600 

726 

-20.18 

Prosperity Gilt & R 

1.40 

6.01 

638 

-20.16 

Norwich Gilt & Cnvtbfe 

1151 

5.93 

6.61 

-20.04 

Clerical Med Gilt & FI 

5.00 

4.9 1 

7.98 

-20.04 

Canfife GK & R 

4.97 

5.67 

6.34 

-19.73 

Sector average 




-16.68 


Saucer Mfcropsl Offer to 6W 00 teomt ntniMtal Exckxtas Out and be* IMM »*i 

«antAnii*o4 


Diary of a Private Investor 


Working to rule 535(2) 


R ule $35(2) sounded 
as if it might be part 
of a European 
Union regulation, 
such as the one which defined 
a carrot as a fruit so that the 
Portuguese could continue 
using these vegetables In the 
production of jam. In fact, 
535(2) was not an EU regula- 
tion but a very useful rule of 
the London Stock Exchange to 
facilitate dealings in certain 
unquoted securities. 

Since July 18. when the 
stock exchange's new, re-num- 
bered rule book came Into 
operation, rule 535(2) has 
become rule 42. But its general 
provisions remain unchanged. 

Shares in 236 companies are 
traded under Rule 4.2. These 
include the Arsenal, Aston 
Villa, Everton and Glasgow 
Rangers football clubs; 
Adnams and Shepherd Neame, 
which operate breweries and 
pubs; Lawrie Group, a tea and 
coffee company; Exchem, 
which makes speciality chemi- 
cals, mining and quarry sup- 
plies: and cereal-maker Weeta- 
bix. 

In April, Michael Lawrence, 
chief executive of the London 
Stock Exchange, launched a 
plan to “promote the interests 
of both quoted and unquoted 
smaller companies' 1 . One of its 
suggestions was the “develop- 
ment and re-launch of the 4.2 
trading facility as a distinct 
market with a suitable level of 
regulation". 

I first bought shares in a 4.2 
company in 1989 when a stock- 
broker recommended Southern 
Newspapers. Based in South- 
ampton, the company domi- 
nates its regional market; its 
publications include an even- 
ing newspaper in the Poole and 
Bournemouth area, where I 
live. 1 was happy to pay 325p as 


I felt the company had a bright 
future, possibly through a 
take-over bid. 

An unfortunate investment 
in Leading Leisure led to write- 
offs in Southern's 1990 
accounts of more than £12m 
and a decline in its take-over 
prospects; as a result, the 
shares drifted down. Unde- 
terred, I took the opportunity 
in 1992 to add to my holding at 
225p. Southern's shares now 
are worth more than £4 and 
the company is valued at well 
over £9Qm. Pre-tax profits for 
the half-year to January 1 1994 
were £7.15m, although this 
included £3£m from selling its 
shareholding in Portsmouth & 
Sunderland newspapers. 

Several companies have 
moved from the 4.2 market to 
gain a full listing; recent exam- 
ples include Celltech, Indepen- 
dent Insurance Group, Scotia, 
Tadpole Technology, Hie Tele- 
graph newspaper group and 
Vardon, a leisure concern. This 



listing, plus complying with all 
the regulatory requirements. 

Under Rule 4£, a company 
need not pay a fee to have its 
shares traded. Instead, a stock 
exchange member firm applies 
to deal In the shares of a par- 
ticular concern; if per m is si on 
is given, this lasts for 12 
months from the date of the 


Kevin Goldstein- Jackson explains 
how to deal in unquoted securities 


means that some 42 companies 
- not all of which are big - can 
be viewed as a ground-door 
investment opportunity, the 
hope being that they (and their 
share prices) will appreciate 
when full stock market listings 
eventually are obtained. 

Yet. many 42 companies do 
not want a full listing. Perhaps 
the directors want to maintain 
their firm's local character. Or, 
they may want to ensure they 
can act for its longer-term 
future without the publicity 
that can come from a frill list- 
ing. Some have been deterred 
by the cost of a USM or full 


last trade. If dealings are so 
few that there are no trades 
within a 12-month period, then 
a fresh application for permis- 
sion must be made. 

Most of the dealings in this 
market are on a “matched bar- 
gains" basis: a seller is 
matched with a buyer and vice- 
versa Details are reported to 
the stock exchange and prices 
are published in its daily Offi- 
cial List as well as on the deal- 
ings page in the Saturday edi- 
tion of the Financial Times. 

Some 42 companies actually 
are very private, and share 
dealings are extremely limited. 


Without the 42 facility, share- 
holders may well be locked 
into the company. Even with 
the rule, a share deal might 
not be possible for months - if 
at alL 

There are two reasons for 
this: first, because no one 
wants to buy at or near the 
price offered; or, second, 
because there are not enough 
shares available to satisfy 
every potential purchaser. 
Therefore, investors should not 
rush into this market on a 
short-term basis. They could 
find themselves with a holding 
that no one wants to buy for a 
long time. 

On the positive side, interest 
in this market has increased 
greatly in the. past 18 months. 
In 1993, for instance, dealings 
worth £520m were reported and 
this year should show an 
increase. 

Direct investment in 42 com- 
panies can provide consider- 
able tax incentives for private 
investors. In its annual report, 
Southern Newspapers points 
out that because its shares are 
not quoted on a recognised 
exchange, they “prima facie 
fall within section lOStiXc) of 
the Inheritance Tax Act 1984 as 
a relevant business property 
which, in appropriate circum- 
stances, will rank for a reduc- 
tion of 50 per cent (30 per cent 
prior to March 10. 1992) in 
value for inheritance tax pur- 
poses". 

In other words - and subject 
to certain conditions - if an 
investor owns less than 25 per 
cent of an unquoted company, 
the IHT Is reduced by 50 per 
cent on such holdings. 

It is encouraging to see inter- 
est being focused on this area 
- although one hopes that the 
various tax incentives will con- 
tinue to be protected. 


CHAMBERLAIN DE BROE LTD 

FMvhaseri Fin ancial Advisors 

You do not have to give away your 
investments to avoid Inheritance Tax 

You do not have to buy life assurance 
to avoid Inheritance Tax 

Our new Inheritance Tax Guide shows how 
to retain full control of your investments and 
reduce or even avoid Inheritance Tax 

For a FREE copy write to; 
Chamberlain De Broe Ltd, 
l $ Brock Street, Bath, BA1 2LW 
Or telephone 0225 484242 

Member of the Ftntnml btatnedarte. Mangos 

nnd Broken Rgateay Agoa**" _ 


The “UTA” Guide 
The better way to 
pick unit trusts 


With over 1400 unit trusts to choose from, you can be forgiven for 
being confused Unit Trust Analysis, an independent company 
owned by the authoritative Fund Research, has launched the *UTA' 
Monthly Guide to end the confusion. The “UTA" Guide does not 
pick unit trusts for you - no guide can do that • but updated sector- 
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needed to help you reach the right decision for your own financial 
rircumstanoes. Correct selection is crucial for long term success. 

The “UTA- Guide costs £149. SO per annum (pins £12. SO 
p+p) and is an invahable tool for all serious unit trust investors. 

Call for more details on: 

^ Freephone Hotline: 0800 132 075 ^ 

ortcritcla: 

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UNIT TRUST ANALYSIS LTD 
Monthly Unit Trust Guide for Dimct Investors 

fcalmilE 


Ita 

n5«|Wj"Vi 


Wggp ■- ^ :■ ■■ 


• s VF 





»We are there where 
the markets are. Worldwide. «< 


An international investment 
portfolio. 

Flci ning FLigihip Fund otfcn ton rite 
chime ot* suoccii iuvtsnicur himH. 
Whar’i more, •.wiu.bi-t between liunK 
can be made at any nine - providing 
coitfidcrable investment dcxibtlirv. 


FLEMING 

FLAGSHIP 

International 

Investments 


Global investment opportunities. 

Through 4i> olliccs in 2? councno wcniJw idc. 
we invest in all major *cuck markets including 
the fast growing econonnrs of Latin America 
and South Fast Asu. 


Flemings - an excellent 
reputation for investment 
management. 

rounded 111 IK? 3, rleiiiiugs r. now 
a World -renowned m cot incur 
haul with user US 5 Tit I'lllnui 
under m.in.igeiiieiit l|s sister 
tuinpaii). Jjidine Mviiimg. ts the 
l.irgcn iinernaiioii.il investment 
UiiiV in the far E.m and lias .in impressive 
long- term pci [urn unite record 

If you would like to receive further inliinu.iuiui 
on Fleming Flagship Fund pirate either 
mum the coupon below, or telephone our 
Client Services Depa r t m ent on (3S2) 40 50 40. 
You may also fox your request on (152) 49 25 91 


Investment performance is Oar trademark. 

Hou i uij; Hjphip Hfol >u« Jttiievci) rudrei friwiit up»c ih Luimh 
in I'oiR Hk prrinmjitrr nr j <lntwn i»f Utr mJn»liul ink 

rftrfiLibk lUnfrilc* l he 9Bi((n.i| IKiotmk'i mja^nmnl 


_G*L 




• ITF -FVdnv Atfirikin finJ T~ Ti 

- f Aavrvjn *■ A"* * **“• 

• H-V-I Ummp hmyc* Fvml ► |t*« t ?n* a 

• FtF-rinTxnp GfciuJ Coowtnbic Fwn* ► l?\ * *7 ■■ 

■ rFF-fVnanf Pulic Fund r Jin t H2“. 

*>wif WvnyJ. itt I iw / S pcae ffftkrr* fc»nW tm afln » sfjrr fn^trewtr 
Jlef .Urft l ,| W awrtt erUerr^cd.l ’S t'K&a’ vfbiw 'tier jw*n 4 

xiwn jikf rfw Ifcrta »*t M wB o me W intok*) +•* fr* 

Amir the fifU iiiwmf u*~4cJ fiiu prvjUou t*r h net «lr» «*vrJy m w l far 

HituMe r oj (M Mff nun iJu pnfr w w ir trruno 

FLEMINGS 

Hrm* Foil Maiqmnv (Incnfaiiel S A 
ti toe dn Srfia. 1-S2' Itmdd. tumid — s 


Information (Coupon 

Mease complete in BLOCK CAPITALS. 

To: Client Services hrpamiimt. Helium; Fund Management (Luaeinbouigt 
S.A.. 4a nte >ln bulbs. L-25J) Howakl, Luxembourg Please send me turtlier 
uilbmunoti on Fleming Flags! np Fund. 

Name . — — 

Ailitrcss 


jl 


Country/ Pirat’d Je _ 
rrieplione munher . 


this sdseitreiiuse lm hwVII jpfmnol >vv FkiuinR Inu-mawaol Fund Marloiiut lanwvJ. 
a mcmlifr ca LAU FRO and IMIUS 


FROM GUINNESS FLIGHT 





P 


1 

E 


■ 


KM 









□Mfttre Martas ■Emstffng MarUts 

We believe investors should hold up to 10% 
of their international equity portfolios in the 
Emerging Markets - to secure exposure to some 
of the world’s fastest growing economies. 
Guinness Flight’s new Global Emerging 
Markets Fund offers a number of advantages: 

6000 TIMING 

The recent correction in many of these 
markets (shown dearly in the graphs above) 
offers a good opportunity to establish long term 
positions in these economies. 

ASSET ALLOCATION APPROACH 

Guinness Flight's particular approach to 
managing a global emerging markets fund 
trill be to emphasise (with a policy of 
wide diversification) asset allocation between 
markets. Initially, the fond will be 
weighted towards the rapidly growing Asian 
markets. To minimise the problems of poor 
liquidity, exposure to embryonic markets 
will be achieved principally through country 
funds or internationally traded privatisations. 


SowcDs:6manMs Right, Datasuwa 
utilities or similar stocks. 

FOCUS ON CURRENCY RISK 

Particular attention will also be paid to 
potential currency risks and opportunities, 
offered by these markets. 

Asset allocation and currency analysis axe 
areas of proven expertise at Guinness Flight, as 
evidenced by major Micropal Awards received 
in 1991, 1992 and 1993. 

LAUNCH DISCOUNTS 

Until 30 September, 1994, there is no 
initial charge on the fond for investments 
of £30,000 or above. Investments of less 
will receive a 1% discount, off the fund's 
normal initial charge of 5%. during this period. 

Return the coupon today, call our Investor 
Services Department on (44) 481 712176 or 
contact your Financial Adviser. 

GJHNNESS FLIGHT 


GLOBAL EMERGING MARKETS FUND 


was vsa exi 


•seat asB3 asm 


H» «B «B SESK tara BSE 3 
Return to: Guinness Flight fond Managers (Guernsey) Limited, Guinness Flight House, PO Box 250, 

St. foter Pott, Guernsey, GYI 3QFL TeL (44)491 712176. Fax; (44)481 7I2Q65. 

Please send me details of the new Guinness Flight Global Emerging Markets Fund. 


Tide. 


.Intdab. 


-Name. 


Address. 


.Country. 



— at — , ..-1 - T - | in , ■ 

■■a Ml m man mnasHi etatneM *no*|tr hMprtm»kuaKamdr<faiia«iMn.nirtailtem^w^ 

■bnaOilBtiaUBidHw^wpnM k — ‘■‘-"-' li i mf'-rrain ia n i nwi ni j n 





VI WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


FINANCE AND THE FAMILY 


The Professionals 


In search of that 
certain mystique 

Joanna Slaughter continues her series on private 
client investment managers . Today: Fleming 

G raham Ball. Within its basic portfolio man- Bali dismisses those who 
managing direc- agement service, £396m is man- argue that more modest clients 
tor of Fleming aged for discretionary clients, should be steered towards col- 
Private Asset and £S96m is run on an advi- Lective schemes. “There is no 
Management, sory basis. doubt that a bespoke portfolio 


G raham Ball. 

managing direc- 
tor of Fleming 
Private Asset 
Management, 
the private client arm of the 
Fleming Group, believes that 
its flexibility makes it different 
from much of the competition. 
Clients can choose the way 
their money is managed and 
how they pay for it 
Bali says: "Clients can be 
advisory or discretionary, fee- 
paying or commission-paying, 
onshore or offshore, interna- 
tional or sterling-based. And 
we take enormous pains to find 
the fund manager most suited 
to a new private client" 

Last year, FPAM's funds 
unrtffr managPiTiPnt on behalf 

of more than 3,600 private cli- 
ents grew by £lbn to £2.7bn. 


I nformation is essential to 
managing your cash, just 
as it is for investing in 
shares. Although putting 
cash on deposit should be the 
most straightforward part of 
managing a portfolio, it is 
often difficult to know where 
to locate the best rates. Here is 
a run-down of useful sources. 
■ Money Fads 

A monthly bulletin gives 
savings rates (Including tax-ex- 
empt special savings accounts, 
offshore accounts and accounts 
for businesses, charities and 
clubs) from around 70 building 
societies and a range of banks, 
although the smallest are 
excluded. In addition, there are 
details of current and student 
accounts and National Savings. 

The fixed-rate section 
includes local authority bonds, 
retail co-ops and guaranteed 
income bonds. Borrowing also 
is covered, taking in credit, 
gold and store cards, personal 
loans and mortgages from 
around 100 lenders. 

The service is aimed primar- 
ily at the professional adviser, 
although one-off copies of the 
magazine can be obtained for 


Within its basic portfolio man- 
agement service, £396m is man- 
aged for discretionary clients, 
and £S96m is run on an advi- 
sory basis. 

FPAM offers two private cli- 
ent services - portfolio man- 
agement for those with 
£100, 000-plus, and a highly per- 
sonalised approach for those 
with more than Elm who want 
an equity-based fund manage- 
ment service in a major cur- 
rency. 

Given the house philosophy 
of choice and flexibility, it is 
no surprise to learn that all 
clients have a bespoke portfo- 
lio. Unit trusts may be recom- 
mended for exposure to 
smaller companies or to exotic 
markets, but collective invest- 
ment vehicles will not be used 
if the client demurs. 


Ball dismisses those who 
argue that more modest clients 
should be steered towards col- 
lective schemes. “There is no 
doubt that a bespoke portfolio 
is Ear sexier than a unit trust 
portfolio," be says. “ And if cli- 
ents have a unit trust, they 
have to pay management foes. 
At the end of the day, we can 
make a good profit with a 
bespoke portfolio of £100,000 - 
and so can the client" 

The 40 private client Invest- 
ment managers have access to 
the independent research and 
international capabilities of the 
Fleming group. It has an 
in-house research unit of six, 
although the task of interpret- 
ing this research for clients is 
left to individual fund manag- 
ers. Their performance is moni- 
tored regularly. 


Investment managers; factfile 5 

Fleming 

(Fleming Private Asset Management) 

Established: 1873 

Regutatoc SFA 

Number of offices In UK: One 

Ntenber of offices worldwide: 42 in 30 countries 

Raids imter managements £2.7bn (private clients); KObn (Planing Group) 

Number of UK private cOents: 3^60 

Number of expatriata/Toreign national private cfiente: 63 

WnJmum investment for private clients: £100/100 . . 

Current asset aflocalioft for private c&ents: UK equities. 67%; overseas equities, 2946; commodities, 294; 
bends, OH; cash, 2% ‘ 

Average annual portfoBo turnover: 30% 

Faess Oommfes«Qri basts, anmiai E2S0 (d isa iatio n agyl w £360 fedvteuty), pkac omi r ite^^ 

0.75 per cent of portfolio value (mWmuu £1,500 a year), plus transaction commissions. 



i for FPAM's Pacific rim de a li n gs 


In the main, UK private cli- 
ents will be invested in the top 
250 shares. Annual portfolio 
turnover averages 30 per cent. 
Ball says: "What turns me on 
in investment terms is good 
management, a good balance 
sheet and good products.” 

He adds: "We are probably 
not ruthless enough with 
losses. At the end of the day. 
we should put in stop losses. 
Some managers do. but we 
don’t do enough of it. 1 think 


the reason is the volatility of 
the mar kets ** 

The house view on asset allo- 
cation is reviewed each month; 
indeed. FPAM has recently 
taken 2 per out of the US and 
put 2 per cent into the Pacific 
rim. The Hie present recom- 
mended allocations for a UK 
client are: cash. 2 per cent; 
bonds. 0 per cent; UK equities. 
67 per cent; US, 10 per cent; 
Japan. 6 per cent; Pacific, 6 per 
cent; Europe, 5 per cent; 


Making your money work 


£4.25*. But information can 
soon become stale in a 
monthly publication of this 
sort For this reason, it is being 
updated constantly on the 
main MoneyFacts database 

Three premium-rate lines 
give a lengthy summary of the 
latest rates: 0335400 238 for 
savings, 0336-400 239 for mor- 
tgages. and 0336-400 237 for 
commercial mortgages. You 
will need a fax machine to 
receive the information. The 
cost is likely to be around £4 to 
£5. depending on when you 
call. 

Some information is avail- 
able free on Channel 4's tele- 
text service (pages 545-546). 

MoneyFacts also provides 
the Weekend FT with its High- 
est Rates for Your Money table 
- on page Vn today. 

■ Elay’s Guides 
These are another comprehen- 
sive source of information and 
also aimed at professionals. 
Unlike MoneyFacts. you are 


given both gross and gross 
compound annual rates. In 
addition, you can find out the 
net rates for both 25 and 40 per 
cent taxpayers. 

You cannot buy an individ- 
ual copy of the monthly paper- 
based Elay’s MoneyMaster but 
it is sometimes found in public 
reference libraries. Alteraa- 


ket. In addition, it runs a 
Moneyline service, which can 
take 200 to 300 calls on a quiet 
day. This costs nothing and 
can be dialled via Freephone. 

Savings details from all 
building societies and the large 
banks are updated once a 
week. Inquirers will be seat a 
neat summary of the top-pay- 


For that , you need facts. Anthony 
Bailey tells you where to find them 


tively. find out if your finan- 
cial adviser subscribes to the 
more sophisticated computer- 
based version of the service. 

A fair amount of free infor- 
mation can be found on BBC2’s 
Ceefax, pages 261-267. 

■ Chase de Vere 
This is a firm of independent 
financial advisers well-known 
for its comprehensive guide to 
the personal equity plan mar- 


ing account for different levels 
of investment, different notice 
periods, and for fixed terms. 
There is also a summary of 
guaranteed income bonds. 

The firm’s subsidiary, Lon- 
don & Country Mortgages, has 
a Freephone line (0800-373 300) 
with mortgage information. 

■ Which? Moneyfax 
This is the newest of the ser- 
vices but, in many ways, is the 


least impressive. Launched in 
June, it compresses too much 
on to one page: a range of best- 
buy savings rates (Including 
Tessas) along with details of 
credit cards, mortgages, per- 
sonal loans and overdrafts. 
Similar s umm aries can be 
found in many newspapers and 
magazines. 

By its nature, Moneyfax can 
be only a starting point for 
financial decisions and it will 
cost you about £1 to get it - 
cheap, but not a best buy. You 
will need a fax ma chine and 
the telephone line is premium 
rate. 

■ FT Cityline 

This provides a comprehensive 
mortgage service, updated 
daily, at a premium rate. 
Again, you will need a fox 
machine. The 18 specialist 
lines include one on fixed-rate 
re-mortgages and another on 
first-time buyer deals. 

The cost could be £2 to £5 
depending on the length of the 


emerging markets, 2 per emit; 
and commodities, 2 per cent 
And althoug h cli ents may have 
as much as 25 per cent of their 
portfolio in cash and gilts if 
prudence dictates. FPAM’s pol- 
icy is to have portfolios 
invested fully. 

Ball says: "We think share 
prices are attractive at these 
levels. Hie view we are taking 
is that the average p/e for 1995 
win be 12 times. That is not 
expensive; it is good value." 


fax. You can get details of the 
different numbers to ring from 
the Cityline help Husk, a simi- 
lar service for savings rates is 
being developed. 

■ Individual institutions 
Some organisations operate 
information lines, most with 
Freephone (0800) numbers. But 
you will, of course, be given 
details only for in-house prod- 
ucts. Even so, savers often 
have their own reasons for 
choosing or sticking with a 
particular organisation. 

* MoneyFacts: Laundry Lake, 
North Walsham, Norfolk NR28 
QBD. tel 0692-500 665); Bitty's: 
0753-880 482; Chase de Vere’s 
Money line: 0800526 091; Which ? 
Moneyfax: 0839400 500; FT 
Cityline: 071-873 4387. (Premium 
rate 'plume lines cost 49p a mm - 
ute or 39p at the cheap rate). 

Information lines: Abbey 
National 0800-555 100); 

Bradford & Bingley 0274 555 
332; Britannia 0800-252 579; 
C&G: savings 0800-717 505, 
mortgages 0800-272131; Leeds 
0645-215 216 (calls charged at 
local rate); Nationwide 0800-400 
417; N&P 0800-808 080; Wool- 
wich 0800-400 900). 


Ball established a traded 
options team two years ago 
and says: “With markets so 
volatile, there is no doubt that 
derivatives are going to 
become more and more impor- 
tant, and I think it is impor- 
tant to protect our portfolios. 
But it is a learning curve. It Is 
very important to hedge, but 
most private clients do not do 
it properly. They will buy and 
sell options instead of writing 
them." 


For the future. Ball would 
like FPAM to expand on the 
international side and to 
acquire another stockbroker or 
investment house. But growth 
will not come from advertising 
or promotions. "Despite our 
success, Flemings are not 
known for their private clients 
and that suits me," says Ball. 
"What we are running is a 
quality operation. I want an air 
of mystique ao people think it 
is a privilege to be a client” 


What you should ask 


■ Is your account paying the 
highest rate? Not many people 
would turn down the chance of 
receiving £1,000 for doing 
almost nothing - but such a 
boost is available to Lloyds 
customers who have deposited 
£50,000 in the balds’s 90-day 
notice account If they 
switched their money to the 
equivalent account offered by 
National Counties building 
society, they would earn an 
extra 2 per cent interest a 
year. But if a smaller, less 
familiar institution has no 
attraction, how about the 
Woolwich? Even this building 
society would pay £800 more 
than its high street rivaL 

■ How safe is the institution? 
While higher rates don’t 
always mean higher risk, they 
often can. Be wary of 

nnfamiliar names. Snmp 

investors may pre fer to avoid 
smaller institutions, especially 
banks where there is a greater 
risk of failure and loss. 

■ Can I get compensation? 

Yes, but it is limited. Hie 


Deposit Protection Scheme for 
banks will cover only 75 per 
cent of the first £20.000 - In 
other words, a maximum of 
£15400. 

The protection scheme for 
building societies will 
guarantee to repay 90 per cent 
of the first £20JMM. 

One way round this could be 
to spread your money between 
different institutions. 

■ Instant access or notice 
account? Higher rates tend to 
be paid on accounts requiring 
the longest notice but this is 
not always the case. See if you 
can strike a balance to find a 
rate which is both very 
compet iti v e but also instant 
access. Postal accounts are a 
good start. 

■ Keep a regular check. Once 
you have tracked down the 
right account, you will need to 
keep an eye on it Today’s 
thoroughbreds have a nasty 
habit of becoming tomorrow's 
also-rans. 



What’s the best part of sending 
your money round the world 7 
Its return, of course. 


'if 1 * •' f: . 








The Martin Currie Emerging Markets Fund has come a 
long way. Since launch it’s seen 1IL4V growth, against a very 
ordinary 39.7%* for the international equity growth sector. 

That’s an average growth 
per annum of 30.7%*. 

From TUrkey to Hong 
Kong, Argentina to Poland. 
Greece to Malaysia, the portfolio is a gazetteer of the Vising 
stars’ of the.stockmarkel world. 

In all we manage around 140 holdings spread, across some 
25 countries. And we only invest where stockmarkets are well 
regulated and in places where we can buy and sell shares easily. 

While behind it all is Martin Currie’s 70 years’ experience 
in managing international equity investments. 

You can invest in this fund for as little as £50 per month, or 
a £1000 lump sum. And we make it easy, offering a share 
exchange facility. For more information on the Martin Currie 
Emerging Markets Fund, talk to your financial adviser, return 
the coupon or call us FREE on 0800 838776. 

Then you can sit back and look forward to the best part 
of your money's world cruise. The return. 


IF YOU DON’T INVEST YOUR 
PERSONAL PENSION PLAN 
WITH US IT’S DOWN TO YOU. 


"Source: MirtnpiL Offer to bid nrt i 


r rvtovetf nl 13 September I9»l to I JuJ» 19W. 







MAM AGS H FUNM -PAST PEMORMANCY. (Syears) 


lGartmore long Term Balanced lundf^ 



<2 




MARTIN- CURRIE 

Mata, Cmr |hd Trial* UA SikJrc Coorl, JO Ctelie Terrace. EdMoqte EH! IES. 
Menber sfIMRO. UWTRO 6 AUTO 

J Phrase complete and return this coupon to Paul Donadiie, Martjn j 
1 Currie Unit TYusts LltL FREEPOST, Saltire Court, 20 Castle Terrace, 

I Edinburgh EHI DAB. Please send me further details of the Martin I 
I Currie Emerging Markets Fund. i 


N.ime 


Are you looking fora top performing personal pension fund? Do you have a head 
for heights? According to two recent independent surveys of regular contribution 
schemes, the Gartmore Long Term Balanced Fund beats all other managed funds over 
the last five years - not to mention the leading with-profits fund.” 

It gives individual investors access to the same investment strategy which we 
apply to large company pension funds. It invests in similar assets with similarly 
outstanding results. 

It is also the fund at the heart of LifePlan: our innovative personal strategy that 
adjusts the balance of investments automatically to reflect you r age. 

For more information on the height of managed personal , UIiail{ 

pensions, call Stephen Attenborough on 071 7 82 2431 or send off the coupon below. 

Please send me dcoib on Gartmore personal pension plans. 

Address . . . „ 




WARNING: Past performance is not necessarily a guide to the future. Market and currency movements may cause Ihe value of units, and any 
income derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. Smaller markets 
can be more volatile than developed stockmarkets and can carry more risk. A long-term approach to investing in these markets is advised. 


Postcode- . : 

i ^rte*aw fryjCTt Ferraro limned. Gjnmn llunr. PO IVw M, 1 1 1 B Monument arm, London ECJR »QQ The raforrautm provided my be uwl far mir mirfcedn* pwfx»<". 







Return the coupon or call Martin Currie FRFt" on 0800 838776. 


***? Ptefammoe ’Kc 0 « , ffy , guide u, funm The pri«<rf rota and die Inc™* from *cm my go*>wti 

is ww » up Jiwl you iro, ate get hock die mnuum you Invert, bawd «*d ippeved by Cimn imrcmanil LfcnanL a member of nffiO .through ftj nMMcd RpiacfnBivc,CilBn(MCtaAdtaateMUI«(nL 

Cjifioorc Houvr, PO Boac (0, 16-16 Mooiomr terca. tendon ECjRiOQ 















FIN ANCIAL TIMES 



hilt y Qu 


sh °u!d S; 


jgg K^_- 

S-V 'i+* - 


«>■*>«« - « 


:ft SQS'V. ‘i JL1 




r. £ - *. 

*1 


No interest in a Tessa 


I took out a tax-exempt special 
savings account (Tessa) with 
the Cooperative Bank when 
they were launched. The inter- 
estxate then was 14 per cent 
with a 1 per cent banns if kept 
for five years. 

Becently, the bank sent me a 
newsletter which included 
details of all its interest rates. 
The Tessa is now just over 5 
per cent. 

That was bad enough; worse 
was the statement that if yon 
poll out capital before five 
years, yon lose an the interest 
I rang the bank and asked if 
this was true; when told it 
was, 1 immediately stopped my 
standing order. 

I have never touched the 
interest. If 1 withdraw that 
and then close the account, 
could the bank deduct the 
equivalent interest from my 
capital? 

■ With regard to the with- 


drawal of capital from your 
Tessa; it is true that any with- 
drawal within the first five 
years wm lead to a loss of an 
tax advantages. 

There is no pro-rata relief if 
any sum of the capital is with- 
drawn. 

Furthermore, any interest 
credited up to the date of the 
withdrawal will become tax- 
able income for the year in 
which the withdrawal takes 
place. 

There is, however, a fadUty 
to withdraw interest from the 
account without invalidating 
the tax-free status. These with- 
drawals must not exceed the 
ftdl amount of interest credited 
to date, less basic-rate income 
tax. 

The reasoning behind »hi« is 
to place depositors in a similar 
position to what they would 
have been had they placed 
their funds outside a Tessa and 


Q&A 


BRIEFCASE 


No *pr nu pcns M ty can ba accepted ty tf» 
FknxM Tinas kr to an awj ghan to toss 
eeMm M myAs a* te tttamaa br post 
as soon as pcetife 

received interest net of tax. 
When the five-year period has 
ended, the balance of interest 
can be taken out without pen- 
alty. 

As long as the depositor 
adheres to the relevant limits, 
there will be no income tax to 
pay, even on the interest with- 
drawn. (Answer by Murray 
Johnstone Personal Asset Man- 
agementX 


Your CGT 


The table shows capital gains 
tax indexation allowances for 
assets sold hi June. 

Multiply the original cost of 
the asset by the figure ft»r the 
monte in which you bought H. 
Subtract tee result from the 
proceeds of yoor sale; tee 
balance will be your taxable 
gain or loss. 

Suppose you bought shares for 
£6,000 hi September 1985 and 
sold them In June 1994 for 
£13,000. Multiplying the original 
cost by the September 1985 
figure of 1-516 gives a total of 
£9,096. 

Su bt racting that from £13,000 
gives a capital gain of £&S04 
which is within tee CGT 
allowance of £5.800. If selling 
shares bought before April 6 
1982, you should use the March 
1982 figure. The RPI hi June was 
144.7. 

The Budget decision that .. . 
indexation cannot be used to 
create or increase losses for 
shares sold after November 29 
1993. has been modified for 
£10J)0O of transitional relief. 


COT IHDEXATIOM ALLOWAMCESe June 1094 

Month 

1882 

1963 

1884 

1986 

1986 

1987 

1988 

January 

- 

1.752 

1.866 1-587 

1503 

1.447 

1.401 

February 

- 

1.744 

1.659 1-574 

1.488 

1.441 

1585 

March 

1A21 

1.741 

1.654 1359 

1.496 

1^438 

1590 

April 

1.786 

1.717 

1.632 1.527 

1.482 

1v421 

1568 

May 

1.773 

1.710 

1.626 1.520 

1.479 

1.420 

1563 

June 

1,768 

1.706 

1.622 1517 

1.480 

1A20 

1557 

July 

1.767 

1.696 

1.624 1519 

1^84 

1.421 

1556 

August 

1.767 

1.689 

1509 1515 

1.479 

1.417 

1541 

September 

1.788 

1.681 

1.606 1516 

1^72 

1.413 

1535 

October 

1.750 

1.675 

1596 1514 

1.470 

1.406 

1521 

November 

1.751 

1.670 

1^91 1509 

1.457 

1599 

1515 

December 

1.754 

1.665 

1592 1507 

1.453 

1X01 

1512 

Month 

1888 

1990 

1981 

1992 

1933 

1994 

January 

1.304 

1.211 

1.111 

1567 

1.049 

1524 

February 

1.294 

1^04 

1.105 

1.062 

1543 

1.018 

March 

12B9 

1.102 

1.101 

1.059 

1539 

1.015 

April 

1.266 

1.157 

1.087 

1543 

1529 

1.003 

May 

1^58 

1.147 

1.084 

1.039 

1 526 

1.000 

June 

1^54 

1.142 

1.079 

1539 

1526 


July 

1^53 

1.141 

1.081 

1.043 

1528 


August 

1550 

1.130 

1.079 

1.042 

1524 


September 

1^41 

1.119 

1.075 

1538 

1.020 


October 

1^31 

1.111 

1571 

1.034 

1520 


November 

1^21 

1.113 

1.067 

1.036 

1.022 


December 

1.218 

1.114 

1.066 

1.040 

1.020 


Soucac Inland Rsvanus 


Incompetent 

solicitors 

My wife and I bought our 
main residence in BUlericay. 

Essex, in November 1987 for 
£210,000- As our main resi- 
dence it is, of course, exempt 
from capital gains tax. 

In April 1993, we purchased 
a fiat in London. It is onr 
understanding that, within 
two years of the second pur- 
chase, we must declare which 
of these properties will be onr 
main residence for CGT 
exemption purposes. If we opt 
for the London Oat, can we 
index-link the price of the BQ- 
lericay house from the date of 
purchase in 1987, or does tee 
indexation apply from April 
1993 only? 

Also, would we need to have 
the house valued at that time 
if indexation is applicable 
from April 1993? 

■ Your solicitors - who 
appear to be incompetent - 
should have suggested that, at 
the very least, you ask your 
tax office for CGT4, the free 
explanatory pamphlet for own- 
er-occupiers. You should now 
do Just that. 

You will see from the CGT4 
that indexation on both proper- 
ties runs from their respective 
purchase contract dates; thus, 
the value of the Billericay 
house in April 1993 is irrele- 
vant 

Company 

failure 

I have been attempting, with- 
out success, to establish what 
has happened to the shares of 
a company called BIT Group 
pic. 

■ Shares in EIT Group pic 
wore suspended an February 3 
1993 and the company went 
into administration in May 
1993. (Murray Johnstone). 


NEW UNIT TRUST LAUNCHES 


{Tdqamg 




Ttigtt 

Yield 

% 


M 

PB> 


SwteJ 


Qtigss on Ufe Fff - H Miisii - Chagas Inside - HMm a n 
Otar brat Wd Annual Otar kmL 


Spots) Bflv - 
Mod 


■ Southern Africa Fund 

Save 8 Prosper (0800 282101) tat Equity growth 0 No Yes 55 15 No 1.000 nfe nfe iVa n/a 9/7/94-29/7/94 

The fund wifi also invest in Botswana and Zimbabwe; these are volatile markets and S&P advisee a maximum 5 per cent hohfing in a cyowth portfolio. 


‘I ^ix ntapa paint dkawnt an C1J300-EZ999: 2 palm an 123,000 or none 2 pens am Mr 1S36 An nattily alp pM 


NEW INVESTMENT TRUST LAUNCHES 


— Targets — 


Manager (Tetepta-} 


Broker 


«* 

Out} 


— Odd* PEP hs»« PS* — 

bu HMnanUWm fens! M tatam Amu* 
Price MV torn. Quags test. Change 

P P £ % £ % 


Oiler Period 


■ IffVESCO Japan Discovery 

MVESC0 Asset management (0800 010333) 

Panmure Gordon Japan 1:5 n/a No Yes lOOp 95.1 p 1,000 1« 

Specialising in Japanese smaller companies, to be nm by manager of Invesco's Japan Smaller Companies unit bust 


n/a n/a 14/7/94-29/7A4 


HIGHEST RATES FOR YOUR MONEY 





fiOTCW 

MMmum 

Rate 

InL 


Aceowt 

Telephone 

term 

daposK 

% 

ptid 

INSTANT ACCESS A/cs 

Birmingham Mdshires BS 

Ftast Class 

0645 720721 

Postal 

£500 

550% 

Yly 

Bradford & Bingky BS 

Direct Premium 

0345 248248 

Postal 

£1.000 

5.40% 

YV 

Skpton BS (we£25.754) 

3 Ugh Strati 

0756 700511 

Instant 

£2,000 

6.10% 

TV 

Nottingham BS 

Post Direct 

0602 481444 

Postal 

wsnnn 

6 l 80 % 

Yly 

NOTICe A/cs and BONDS 

Boater Bank 

9 Day Cal 

0392 50636 

9Day 

C1JXJ0 

6JXH4 

Yly 

CNy & Metropolian BS 

Super 90 

081 464 0814 

60 Day 

£10,000 

6.40% 

viy 

National Counties BS 

90 Day 

0372 742211 

90 Day 

E50J100 

7.15% 

Yly 

Yorkshire BS 

fixed Rata Bond 

0800 378836 


C5JM0 

8JS0%F 

Yly 

MONTHLY INTEREST 

Britannia BS 

Capital That 

0538 391741 

Postal 

£2.000 

557% 

Mh 

Confederation Bank 

Monthly Income 

0438 744500 

30 Day 

£2.000 

555% 

MV 


Scaitowtwtfi 94 

0800 S90578 

90 Day 

225^000 

B.75%8 

My 

Yorkshire BS 

Fixed Ra» Bond 

0800 378836 

30598 


855%F 

My 

TESSAS (Tax Ptoe) 



0438 744500 

5 Yeti 

£8500 

&00%F 

YV 

HfnWey & Rugby BS 


0455 251234 

5 Year 

E340QA 

755% 

YV 

Melton Mowbray BS 


0864 83837 

5 Year 

£1 

720% 

YV 

Nottingham BS 


0602 481444 

5 Year 

£1 

7.15% 

YV 


MOW gWCTEST CHEQUE AA» (Gross) 


HaSaxBS 
Catodontan Bank 
Chelsea BS 


Asset Reserve 

0422 335333 

Instant 

£5,000 

450% 

QV 

H1CA 

031 556 8235 

Instant 

£1 

4.75% 

YV 

Classic Postal 

0800 717515 

Instant 

£2500 

600% 

YV 




fySPOO 

625%. 

YV 


Wookwch Guernsey Ltd 

Portinan Channel (stands 

Confederation Bank (Jrey) 

Cortettaration Bank (Jrey) 

International 
Instant Gold 
Ftextte tav 
bwstment Cert 

0481 715736 
0481 822747 
0634 608060 
0534 60806 0 

Instant 
Instant 
60 Day 

5 Year 

£500 

£20500 

£25400 

£10500 

5.75% 

620% 

620% 

825%F 

YV 

YV 

YV 

YV 

aUARANTEB) mcOME BOW7S 8«et) 

Liberty Life 

Oonsofldated Life 

ConsoBdated Life 

Consolidated Life 

Euralte 

tumoHAL sAvmos a/c* a bonds (arose) 


081 440 8210 
081 940 8343 
081 940 8343 
081 940 8343 
071 454 0105 

1 Year 

2 Year 

3 Year 

4 Year 

5 Yeer 

£10500 

£2500 

P?,mn 

£2500 

£10500 

420%F 
&60%F 
620%F 
7.00% F 
7.75%F 

YV 

YV 

YV 

YV 

YV 


investment A/C 
Income Bonds 
Capital Bonds H 
First Option Bond 
Pensioners GIB 


1 Month 
3 Month 
5 Year 
12 Month 
5 Year 


£20 525%G 
22,000 &5096H 

£100 725%F 

£1.000 6l00»R 

£500 7J»%F 


V V 

My 

OM 

Yly 

Mty 


NAT SAVINGS CERTIFICATES (Tex Free) 


41st Issue 

5 Yeer 

£100 

&40%F 

OM 

7th tadex Linked 

5 Year 

£100 

3.00%F 

dnh 

0M 

Chickens Bond F 

5 Year 

£25 

725%F 

0M 


TNs table covers major 

Bonds) ore shown = Rxed FtatetfULoOwr^® Stawata- Q= 5.75 per cent on 

^ Post only- A = ufgys pet cent on £25,000 and above. U 6.40 per cent on 

ontrty (SdTto Investment and Mortgage Rales. Laundry Lake. 

SS: - cop, by 500^7. 



Who said your 
business can't 
have free banking 

and earn 4.00% 

joss pa? 

CaH(J7)4031SS0during office hours of 24 hour line 071 426 0879 


You can have 60 free 

transactions per month, 

and earn a high interest 

rate on a minimum 

deposit of £2001. 

ALU E D TR UST 
S ' "rr BA N K 

Ljivua Brrtsea. HiB. Imta K« .’AI 


A guide 
to the 
lenders 


F or information on the 
many organisations 
which operate as 
building societies, a 
browse through the Money- 
facts Building Society Direc- 
tory* is instructive. 

Covering all 84 societies, it 
shows the full range of tbe sec- 
tor - from the mighty Halifax 
to the small societies which 
lend mainly within walking 
distance of their head offices. 

It also includes a new fea- 
ture detailing the disappear- 
ance of societies through 
mergers. If you have been kept 
awake at nights wondering 
what became of tbe Magnet & 
Planet or the Kent Reliance, 
this is the volume for yon. 

For existing societies, the 
directory gives year-end bal- 
ance sheets along with some 
other key financial statistics. 
Information about subsidiaries 
and available banking services 
also is provided, along with 
details of auditors, solicitors 
and relationships (if any) 
between societies and life 
insurance companies. 

What the book does not do is 
set out all tbe statistical infor- 
mation - including addresses 
for each branch - to be found 
in the Building Societies Year- 
book (published by the Build- 
ing Societies Association), or 
analyse how each of the larger 
societies performed against its 
competitors (the basis of the 
DBS Building Society Major 
Players annual survey). 

Still, at £19.95, it is much 
cheaper than either BSA (£55 
for tee latest edition) or DBS 
(almost £200 last year). 

Perhaps next time, though, 
it could include the range dur- 
ing the year of the rates paid 
to, or by, easting savers and 
borrowers as well as the best 
and worst deals offered to new 
customers. 

Alison Smith 

*Availabk from Moneyfacts 
Publications, Laundry Lake, 
North Walsham, Norfolk NR28 
0BD (0692-500 765). 


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Vin WEEKBND FT 


FIN ANCIAL TIMES WEEK-END JULY 23/JULY 24 1994 


★ 

PERSPECTIVES 


Minding Your Own Business 

right direction 



Gafin Rogers (Ml) and Angus MacDonald 


The 


E dinburgh Financial 
Publishing wns a suc- 
cess from the word 
go. According to Jer- 
emy Salvesen, its co-founder; 
"It is the only business Fve 
known where one put in an 
amount of capital on day one 
and sever for a single day was 
the bank balance less than the 
capital." 

The company started life in 
1990 as Director Angus Mao 
Donald, a 26-year-old fund 
manager in Edinburgh, had, 
like others, noticed that when 
directors of a quoted company 
bought or sold its shares this 
often signalled it was a good 
time for others to follow suit 
A company in Birmingham 
named BRI had long provided 
a rudimentary service mailing 
brokers and fund managers 
with details of these transac- 
tions based on stock excha nge 
announcements. MacDonald 
had the idea of providing a bet- 
ter, computer-based service, 
and took it to Salvesen, a com- 
puter expert 

“Angus used to come to me 
with ideas on a regular basis,” 
says Salvesen, aged 30. “This 
struck me as a good one and 
would combine my computer 
Simla with his as a salesman.” 

Directus would fax custom- 
ers with full details of direc- 
tors’ dealings within hours of 
the announcement. It entailed 
creating a database that would 
enable it to put the transac- 
tions in context 
“The actual transaction is 
meaningless if you don't know 
the background." says Salv- 
esen. 

“A director may sell £10,000 
worth of shares but keep film, 
or he may be selling to fund a 
divorce settlement. We would 
get details from the company 
and fax customers a graph 
showing the share price with 
previous directors' dealings 
marked in." 

The two men began Directus 
from a large cupboard in Salv- 
esen's office in Edinburgh. 
Salvesen says it did not actu- 
ally need start-up capital 
because clients would buy a 
year's subscription in advance. 
However, to indicate their com- 
mitment each of them put in 
£10,000. 

While Salvesen processed the 
information and issued the 


faxes, MacDonald, who had 
earlier served a short commis- 
sion in the army and is 
described by some as a “selling 
machine", toured brokers, sign- 
ing them up to the service, for 
which Directus was asking 
twice as much as BRI was 
c h argin g . 

It was an immediate success. 
Directus met its first year’s 
sales target in three months 


and within a year bad acquired 
BRI In its first 10 months of 
trading, turnover was £137,000; 
a year later it had reached 
£437,000. 

Directus began contributing 
a weekly summary of directors’ 
dealings to the Weekend FT. 
and still does. And it produces 
weekly and monthly editions 
of a newsletter. The Inside 
Track, for private Investors. 

Colin Rogers, a stockbroker, 
has joined the company and 
Salvesen has left to buy Dun- 
cans of Scotland, a chocolate 
bar maker, becoming non-exec- 
utive vice chairman of EFP 
under MacDonald. 

The directors’ dealings ser- 
vice now makes up only about 
10 per cent of the turnover of 
Edinburgh Financial Publish- 
ing, the company’s new name. 
Turnover reached £2 2m in the 
year to March and its flagship 


product today is the Estimate 
Directory. 

Fund managers had grum- 
bled to MacDonald about the 
immense volume of research 
material poured out by ana- 
lysts which they were expected 
to digest daily. The company 
came up with a summary of 
brokers’ profit forecasts, listed 
by company and updated every 
month with changes high- 


lighted. 

Some 300 subscriptions to 
the Estimate Directory were 
sold before the first edition 
went to press and it now sells 
more than 2,500 subscriptions a 
year. It competes with two 
online services, but MacDonald 
says many brokers prefer 
looking up the data in a book. 

Soon, said Rogers, brokers 
were crying out for directories 
covering other markets. EFP 
decided to start with the 
Pacific Basin, an English- 
speaking area with strong mar- 
ket potential. It recognised 
that the main market for the 
new directory would be in the 
region itself. 

MacDonald went to Hong 
Song in late 1992 with 30 
copies of the first issue of 
EFP's Estimate Directory - 
Pacific Basin, covering more 
than 1,000 companies in Hong 


Kong. Singapore, Malaysia. 
Thailand, Australia and New 
Zealand. 

“Within two months it bad 
taken Hong Kong by storm," 
Rogers says. MacDonald 
recruited a salesman and 
started selling in Singapore, 
Malaysia and Thailand. He also 
found plentiful new publishing 
opportunities in the Far East 

EFP (Asia) now produces a 
daily digest of the business 
press in Pacific countries, 
which is compiled in English 
at dawn each day, and foxed to 
brokers and investors in the 
area and in Europe. 

The Hong Kong company 
recently launched a handbook 
of Hong Kong companies, and 
is working on handbooks for 
Singapore and Malaysia. 

Meanwhile the Edinburgh 
operation, run by Rogers, 
launched The Estimate Direc- 
tory - Europe, covering Euro- 
pean companies, and recently 
opened a sales office in Paris. 
It now has one in New York 
and is working on ways of 
delivering its services electron- 
ically. 

What strikes one about EFP 
is its can-do mentality and its 
youth. Its oldest director Is 33. 
Its sales staff work on commis- 
sion and offer ingenious dis- 
counts. When it celebrated the 
opening of new offices in Edin- 
burgh a few months ago virtu- 
ally none of the old guard of 
the Scottish financial commu- 
nity was in evidence. 

It new employs about 25 peo- 
ple in E dinb urgh and a similar 
number in Hong Kong. Its 
Hong Kong turnover is expec- 
ted more than to double from 
£650,000 in 1994 to £L3m in 
19%. while its UK sales should 
grow from £L56m to £2 An. 

Nevertheless, MacDonald 
says a stock exchange quota- 
tion for EFP is a long way off. 
Td love to run a quoted com- 
pany but the only reason to do 
so would be to make acquisi- 
tions. We can't find anything 
that isn't very expensive and 
the stock market doesn't give 
small companies proper treat- 
ment.” 

■ Edinburgh Financial Pub- 
tistmg. 16 Randolph Crescent, 
Edinburgh EH3 ITT. Tel: 
031-220 0468. 

It Directors' transactions. 
Page IV 


James Buxton reports on a business 
which succeeded from day one 


MINDING YOUR OWN BUSINESS 


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LEGAL NOTICES 


No. manes rfiom 

EjBEmflBCQiiritoF.iiLmT: 
CHANCERY PIYIHOH 

IN THE MATTER OF 
HEMINGWAY PROPERTIES PLC 
-sad - 

IN THE MATTER OF 
THE COMPANIES ATT IHS 


in the matter of 
Hemingway commercial limited 

-sad - 

IN THE MATTER OF 
THE COMPANDS; ACT USS 


NOTICE LS HEREBY GIVEN the nn Older of 
the Hieh Court nf Junior I. Cl merry- DivitteA) 
dated orb My 1994 amHmrinf! ibc t e duaha of 
the than canal of ibc adorc-iumcd Cbopiny 
tad U 7 .IS 7 . 42 W to uidre 

Minute appro-ed by the Court ibowo «iih 
nyi > cd Ae of die C jiwny ■ ihwd 
(he sold ranlcsljn required by (he above 
remlin aod A a were reroicral by Ac Regans 
at GMapmei ad SA Jsfi 19 M. 

Deed Ah 23rd day of loir If** 

ASHURST MORRIS CRISP 
Broadwalk Hosse 
J AppoUSnca 
London EC3A 2HA 
Reference SAW 
SohcUon liar Ar add Conqgoe 


NOTICE IS HEREBY GIVEN dm be Outer of 
Ibc Hlch Coon of hniioe id-incay DivMmj 
died erk My 1994 coolirmte^ the reduction of 
the store espied of As above wwni Company 
from fJ.4K3.llUi ro £100 |h c Minnie 

ippmved by die Cool ibmm w.*h tawd lo the 
capital of Ibc Company u altered (he end 
pudeubm required by Ac shove laentkned Aa 
were registered by Ibt Repdar o{ Omssann on 
Slh July 1494. 

DmJ this IM day of My l<KH 

ASHURST MORRIS CRtSF 
Bmsda'alfc Norm 
5 AppoUSrrea 

UwAmECZA 2HA , 

Reference: SAW ‘ 

SoIkrMn for Ac -Mai Coapmt 



Dr, about this alien . . . 


A n anti-rational 
boom is sweeping 
America and. 
suddenly, I do 
not feel I missed 
out on the 1960s. Recently, four 
of the 10 best-selling books 
were on themes of near-death 
experiences, spirituality, and 
the immortality of love and 
consciousness. 

Psychics and palmists’ 
salons are proliferating and 
weighty magazine articles are 
questioning memory, some 
even denying the Holocaust. 
Men and women are seeking 
happiness through wonder 
drugs such as Prozac and are 
forming electronic communi- 
ties on internet with people 
they have never seen. 

It was just a matter of time 
before someone added uniden- 
tified flying objects to this 
potent mix. Recently, book 
store displays were joined by a 
weighty tome about little grey 
aliens with blank eyes abduct- 
ing large numbers of 
Americans and forcing them to 
have sex inside spaceships, fol- 
lowed by lectures on ecology. 

It would be easy to dismiss 
Abduction (published in the UK 
and US by Scribners) as crazy 
except for one detail Dr John 
Mack, its 64-year-old author, is 
an eminent Harvard professor 
and psychiatrist and winner of 
the Pulitzer prize for his previ- 
ous book, a biography of TJ3. 
Lawrence. He used clinical 
methods to interview 90 people 
who claim to have been 
abducted (13 appear in the 
book). And he believes them. 

Or so he says. On a sunny 
spring morning in Cambridge, 
Massachusetts. I met Mack 
inside a wooden box of a house 
with a yard full of tangled 
weeds. Tired from appearances 
on such talk shows as Oprah. 
Winfrey and Larry King, he 
asked about the ETs circula- 
tion before settling on a pink 
velvet chaise longue to tell 
how he moved from scepticism 
to believing in large-scale cos- 
mic rape. 

According to the publisher’s 
hype, one in 5Q Americana has 
experienced an alien encoun- 
ter. Mack was introduced to 
the phenomenon by Budd Hop- 
kins, a New York-based artist 


and fother or the UFO abduc- 
tion movement, whom he met 
in January 1990. Hopkins told 
him of more than 200 people 
across the US who had, appar- 
ently, been kidnapped by 
aliens. 

Mack recalls: "My first reac- 
tion was that there must be 
something wrong with him and 
that he was dealing with some 
contemporary form of mental 
illness. But I met the people 
and they were of sound mind, 
telling their stories reluctantly, 
scared of being ridiculed. 

“Their stories were so simi- 
lar, and told with such inten- 
sity and detail, that they could 
not be explained psychiatri- 
cally. It could only be real 
experience. That shook me up. 
If it's real, what is it?” He 
began seeing abductees in 
spring 1990 and says that only 
a handful of the 90 he has 


years earlier; Dave, who as a 
child had his pants removed 
behind a bush by aliens; 
Jenny, who gave birth to a 
human alien hybrid; and Peter, 
who had an alien wife in a 
“parallel universe”. 

These are aliens with a pur- 
pose - to save us from our- 
selves. After being raped or 
examined, abductees are lec- 
tured on how mankind is 
destroying the earth. Images, 
given either telepathically or 
through giant screens, show 
vast areas of polluted water or 
parts of the planet disintegra- 
ting. 

If the true motive of the little 
grey men is to turn us green, 
why are they not appearing to 
world leaders or those who 
could do something to ward off 
this impending ecological 
catastrophe? 

Mack claims they are. “Pres- 


Christina Lamb meets an eminent 
Harvard professor who believes 
that large-scale cosmic rape 
has been taking place on earth 


interviewed have some form of 
mental illness or effects of a 
trauma. 

In his book, he details a 
handy do-it-yourself guide on 
how to recognise when you are 
experiencing an alien abduc- 
tion and not simply the effects 
of overwork or excess alcohol 
Abductions usually begin at 
home in bed or while driving 
at night. The first sign is a 
flood of blue or white light, an 
odd hum or sighting of a being 
or craft A beam of light then 
floats you through the wall 
into a spaceship. 

to. a large room, lined with 
flashing computer consoles, 
small grey beings with large 
hparifi and long arms undress 
the abductee and remove hair, 
skin and sperm samples. 
Female abductees are often 
impregnated and the foetus 
later removed. 

Mack's book quotes Ed, who 
remembers a silver-blonde 
alien woman taking a sperm 
sample from him inside a 
"pod" while at high school 30 


tigious people are worried 
about their reputations so they 
don't want their identities 
revealed. We have good evi- 
dence that one world leader, at 
least, has been taken. We’ve 
talked to him and he doesn't 
deny it." 

He adds: “I have patients 
from all walks of society. A 
prison guard and female gas 
station attendant, at one end of 
the spectrum, to a prominent 
business executive, high-level 
diplomat and someone running 
for Congress at the other." 

The first known abduction 
case was in 1957 in Brazil, a 
country with a fine line 
between reality and fiction. In 
the US, the first documented 
case occurred in 1966. Betty 
and Barney Hill, a retired cou- 
ple who had got tost one night 
in the White Mountains of New 
Hampshire, underwent hypno- 
sis and “remembered" being 
kidnapped by aliens. Their 
experience led to books, films 
and TV dramas. 

Abduction appears to be 


almost entirely a US phenome- 
non. Mack says this is simply 
because the country has a 
large number of trained psy- 
chotherapists to help people 
“remember". But there is 
much controversy at present 
over aggressive,- memory- 
enhancing techniques used by 
therapists to “recall" events so 
traumatic that, apparently, 
they had beoi repressed. 

A California court recently 
awarded $500,000 (£329,000) to a 
fother who accused therapists 
of conning his bulimia-afflicted 
adult daughter into “remem- 
bering” childhood incidents of 
incest that he said had never 
occurred. As a result of her 
charges, the man lost his job 
and his wife. 

Mack gives little detail on 
his methodology except to say 
that it involves hypnosis and 
breathing techniques. He 
writes that “memory of an 
abduction may be outside t£ 
consciousness until triggered” 
and sweeps away suggestions 
that his subjects were people 
already familiar with UFO lit- 
erature. 

“These are real powerful 
emotions from the core of their 
being." he says. “We can’t 
invent memories like that Fur 
thermore, there are physical 
findings - cuts, scoop marks, 
lacerated and triangular 
lesions, implants and inexplica- 
ble nose-bleeds. Accounts of 
abductions often coincide with 
other reports of UFOs in the 
vicinity." He adds: “Maybe the 
phenomenon is mysterious and 
has no place in our world view. 
But it’s not false. i 

“The problem is with west | 
era. culture, which is just not , 
ready to accept the idea of life 
on other planets. Other cul- 
tures, like native American 
and Buddhist, don't have prob- 
lems with this. But we have 
become so arrogant that we 
don't want to think we axe not 
in control. No other people in 
the history of mankind has 
been so denying of the exis- 
tence of other intelligence.” 

That said, he rubs his blue 
eyes and says: “I think you’ve 
got enough there,” before mov- 
ing wearily on to the next 
interview. Even aliens, it. 
seems, need publicity. 


.'O -■ 


.I*-.. .- 




.• -■ ' i; ; 
' 111 , .. 


. - 4 

** a ' : -t 

-'it- 

“ i/Ji 

^ u V1 


FT Ski Expedition /Arnie Wilson 

Where only the rain is free 


Arose Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a round-the-world expe- 
dition. This week in Argentina 
they completed 200 days. 

I t has scarcely stopped 
raining since we limped 
into Argentina in our bor- 
rowed Lada vehicle, 
which seems to be working on 
one cylinder and half a gear- 
box. 

S kiing conditions here have 
been abysmal: like skiing on 
frozen meringues in a mon- 
soon. Heini Kerapel, director of 
the Escquela Esqui Catedraf 
the main ski school at Gran 


Catedral. the ski area of Baril- 
oche, was frantic: “Conditions 
are terrible," he said. “They 
have had to close most of the 
top half of the mountain 
because of high winds and 
rain. We are to big trouble." 

But our welcome has been as 
warm as the weather has been 
wet The scenery too is magnif- 
icent: no volcanoes in this part 
of the Andes, but a spectacular 
lake, Nahuel Huapi (Island of 
the Tiger, in the language of 
the Araucano todians). 

The only drawback is the 
cost of everything: Argentina 
can be almost as expensive as 
Japan. Only the rain is free. 


The Cerro Bayo resort is the 
brainchild of Jean-Pierre 
Raemdonck, a lanky, bespecta- 
cled Belgian who came to 
Argentina as a student on a 
motorcycle and never left He 
tried selling waffles in Baril- 
oche but was unable to secure 
his own waffle concession. 

"So I decided to build my 
own ski area in order to sell 
my waffles," he said. With no 
experience (he could not even 
ski) he hacked his way through 
dense forest, using oxen to 
clear the trails. 

“I put the second lift 
together on my own," he said. 
“Well, I had a helper but he got 


drunk all the time . We could . 
only afford the lifts, but not 
the lift towers. We made ahull-, 
wheel from, an old moto rbOte ,• 
and made our own towers from ■ 
trees. They lasted for years." ' . 

ifrs resort has developed into , 

a minor gem. 

Perhaps he could repair our 
Lada’s tortured gearbox. EveiJ ... 
our Hewlett Packard Omni" . 
Book computer has started difr: . : „ . 
respectfully urging me to 
Help or Start Interactive L» . 
sons". 

Perhaps like Hal, the space ■ 
ship's computer to the flln . 

2001. it is trying to take ovei^ .. 
our mission. 







financial times 


WEEKEND JULY 23/JULY 24 1994 


WEEKEND FT LX 


PERSPECTIVES 


The legacy of Stauffenberg 

Giles MacDonogh looks at the attempt to kill Hitler - and its lasting impact 50 years on 


C ount Colonel 
Klaus Schenk von 
Stauffenberg left 
the Berlin suburb 
of Wannsee for 
the military airport at Rangs- 
dorf at 7am on the mominp of 
July 20 1944. His adjutant, Wer- 
ner von Haeften, was waiting 
for him. Together they Hew to 
Hitler's HQ, the socalled Wolf- 
schansw. or Wolfs Lair, at Ras- 

tenburg in East Prussia. 

Count Stauffenberg was 
chief of staff to General Fried- 
rich Pro mm, head of the 
Replacement Army. In theory, 
Stauffenberg was flying to Ras- 
tenburg to arrange the cre- 
ation of two new divisions to 
protect East Prussia, Ger- 
many’s eastern-most province, 
from imminent Russian attack- 
in fact, his mission was to 
assassinate Hitler, a plan that 
had been years in the making, 
and his briefcase contained 41b 
of explosive. 

At the briefing, Stauffenberg 
sat close to Hitler and placed 
bis briefcase under the table. 
Soon after, he left the room 
He and Haeften heard the 
explosion as they got into their 
car and could see a plume of 
smoke rising from the bunker. 
By 1.15pm, Stauffenberg was 
Berlin-bound and convinced 
that the bomb had done the 
trick. 

But Hitler was not dead: his 
eardrums had been pierced, his 
trousers shredded and his 
elbow badly bruised, but be 
had survived. 

Confused reports reached 
Berlin. General FellgiebeL the 
signals' chief, was able to call 
his fellow conspirator Colonel 
Kurt Hahn in nearby Mauers- 
dorf before a communications 
blackout was imposed: “Some- 
thing’s gone wrong," be said, 
“the Fflhrer's alive." 

Reports that Hitler had 
emerged unscathed from the 
debris caused the conspirators 
to dither in the Bendlerblock 
HQ In Berlin, from where they 
were supposed to issue the 
Walkure orders - orders which 
would have led to the take- 
over of the government and a 


negotiated peace with the 
allies . Hie delay scuppered any 
remaining chances of success. 

By the time Stauffenberg 
reached the Bendlerblock at 
about 3.30pm, Fromm bad dis- 
covered from Field Marshal 
Keitel, who had also survived 
the blast, that ifitler had sur- 
vived. When Stauffenberg 
arrived, Fromm told him the 
news. But Stauffenberg was 
adamant “He Is dead, l saw 
him carried out . . . The explo- 
sion was as if the hut had teen 
hit by a 6in shefl. It is hardly 
possible that anyone could be 
alive — Keitel is lying as 
usual." Concerned. Fromm 
refused to co-operate with the 
plotters and was arrested and 
taken away. 

According to the WalkQre 
orders, the administrative cen- 
tre of Berlin was to be sealed 
off by the guards battalion anfl 


Remer in charge of operations 
against the conspirators and 
promoted him on the spot. 
Later Remer would repay his 
trust by founding one of Ger- 
many’s first, post-war neo-Nazi 
parties. 

Berner’s men stormed the 
Bendlerblock. In the fray Stauf- 
fenberg was shot twice and 
wounded. It was Fromm, 
released from captivity, who 
arrested the ring-leaders. At 
12.30am the conspirators were 
taken to the courtyard to be 
shot As Stauffenberg passed a 
familiar secretary be said: 
“They all left me in the lurch." 
As he was ted before the firing 
squad, the faithful Haeften 
tried to throw himself between 
Stauffenberg and the bullets. 

“Long live our sacred Ger- 
many.” shouted Stauffenberg. 
Then he collapsed a nd died. 

The assassination attempt of 


great act of spite, a final 
attempt to prevent Germany’s 
post-war reconstruction. The 
SS was still murdering prison- 
ers as the Russians entered 
Berlin. 

Officially, little mention was 
made of the plot before the cre- 
ation of the two German repub- 
lics in 1949. The first time it 
was celebrated was in 1953. 
just a month after an abortive 
uprising in the Russian zone of 
June 17. The few east Berliners 
who fled to the west were 
encamped in the courtyard of 
the Bendlerblock. and it was 
there that the mayor, Ernst 
Reuter, <*hneo to remind flip™ 
of the martyrs of that earlier 
revolt against dictatorship. 

Since the mid-1950s the July 
plot has been marked by a cer- 
emony at Plfitzensee prison in 
Berlin, where many of the men 
of July 20 met their deaths. 


The plot still counts for something in Bonn and 
appears to be a useful entry on a curriculum vitae 


troops from the training 
schools on the edge of the city. 

Outside the Bendlerblock, 
other conspirators, including 
the young Rhodes scholar. 
Adam von Trcrtt zu Solz of the 
foreign office in the WOhelins- 
trasse. realised the attempt 
had taken place when they saw 
Berlin’s centre closed off by 
guards. 

He watched the street anx- 
iously from the window. To his 
relief the traffic ceased and sol- 
diers appeared. But three 
hours later, they shouldered 
arms and marched off. 

Hans Bemd von Haeften. 
brother of Sfcauffenberg’s adju- 
tant, was not slow to draw the 
obvious conclusion that the 
Nazi forces had regained con- 
trol. He turned “as white as a 
sheet". 

The Nazis survived thanks to 
Joseph Goebbels and Major 
Ernst Remer of the guards bat- 
talion. Goebbels convinced 
Rawiftr to speak to Hitlw mi 
the telephone. Hitler put 


July 20 1944 was the fruit of 
plane laid in autumn erf 
1338. Colonel General Ludwig 
Beck bad resigned as chief of 
the genera] staff in protest at 
Hitler’s plans to invade 
Czechoslovakia. His civilian 
counterpart was Carl Goerde- 
ler, the Indefatigable former 
mayor of T^p^ ig- 

In the intervening years the 
conspiracy brought together a 
powerful cadre of anti-Nazis - 
noblemen, officers, churchmen, 
trades unionists, socialist poli- 
ticians, diplomats and civil ser- 
vants. Goerdeler busied him- 
self with the structure of the 
future government and drew 
up detailed lists of its potential 
members. 

These lists were to be the 
downfall of many. Of the 5,000 
or so people executed after 
July 20, only about 200 were 
actually implicated in the plot. 
The rest were simply promi- 
nent opponents of the regime: 
the core of a fixture Germany. 
The purge was to be one last 


Bat despite the hundreds of 
books which have been pub 
fished on the subject, little is 
made of it in schools. 

Clarita Mfiller-Plantenberg, 
only a few months old when 
von Trott, her father, was exe- 
cuted at Plfitzensee, recalls 
that the girls at school treated 
her differently. Many had lost 
fathers in the war, but they 
knew that she was special: 
"They thought I most be Jew- 
ish and stayed off the subject” 
Later she remembers a teacher 
blushing to admit that he 
approved of the men of July 20 
and what they stood for. 

In a number of cases there 
was a reluctance to honour the 
dead of July 20 in their home- 
towns and villages. Von Trott's 
brothers erected an impressive 
cross in the woods above the 
family manor house at Imshau- 
sen, but in the village church 
the verger resisted the idea of 

a mnrniragnt 

It was the mid-1980s before 
voii Trott's name appeared in 


the church, and then only as 
part of a general plaque com- 
memorating the dead of the 
second world war. There were 
still a few Germans who saw 
the plotters as traitors. 

There was also a natural ten- 
dency to see the leaders of the 
coup as a last flowering of 
another Germany, no longer 
relevant to either of the two 
states created after the war. 
The romantic history focused 
on the aristocratic officers 
rather than the civilians of the 
plot 

The Grundgesetz of 1949 was 
to reaffirm the Weimar consti- 
tution’s Article I which abol- 
ished noble titles. The new 
Bundeswehr was also estab- 
lished with the expressed 
desire to rid the armed forces 
of all connection with the Prus- 
sian military tradition. Prussia 
itself, which had supplied 
much of the core of the resis- 
tance, was rudely robbed off 
the map in February 1947, its 
eastern provinces being par- 
celled out among the Russians 
and the Poles. 

It can be safely said that 
Stauffenberg’s “sacred Ger- 
many” bore little or no resem- 
blance to either the Federal 
Republic or the Democratic 
Republic. 

But the plot still counts for 
something in Bonn and 
appears to be a useful entry on 
a curriculum vitae. President 
Richard von WeizsAcker, for 
example, doubtless derived 
credibility from his father 
Ernst. While he was at the 
helm of the foreign office, it 
was barely tainted with 
Nazism, and many of his pro- 
teges went on to become 
ambassadors after the war. 

For von Trott’s widow, also 
named Clarita, July 20 is more 
important than ever now that 
the two halves of Germany 
have been united. With the 
increase in racial violence she 
feels that the young need role 
models who will teach them 
how to react to blatant injus- 
tice. 

But perhaps the real proof 
that German poli ticians still 



Stauffenberg (right): his ‘sacred Germany 1 bore little resemblance to what folowed the war Buxfcsarcuw 


feel the need to show them- 
selves the heirs to Stauffen- 
berg, Beck or Goerdeler is pro- 
vided by Helmut Kohl, the 
German rhanrgiinr himself. On 
July 20 of this election year he 


decided that he alone would 
enjoy the right to address the 
faithful in the grim execution 
chamber at Plfitzensee Prison. 

■ Giles MacDonogh 's Prussia. 


The Perversion of an Idea, teas 
published this week by Sinclair- 
Stevenson (£20). There is a 
paperback edition of his book. A 
Good German: Adam von Trott 
zu Solz, from Quartet (£10.99). 


Survivor waits to be made welcome 

Maurice Samuelson talks to an anti-Nazi conspirator who has been fighting for justice for 40 years 



Dr Otto John In 1950: today ha is an ■unperson' tumDeutach 


I nstead of attending Ber- 
lin’s 50th anniversary 
or the bid to kill Adolf 
Hitler, one of the lead- 
ing survivors of the 
conspiracy remained this week 
in self-imposed exile from his 
beloved Germany. 

Dr Otto John, 85, told me he 
spent the day looking ont at 
the spectac ular mo untains of 
the Austrian Tyrol, his home 
for the past 27 years. 

As a result of a stroke he 
can no longer walk and can 
write only with great diffi- 
culty, leaving him dependent 
on his secretary, the house- 
keeper who comes every toy, 
and on his gardener. 

Bnt this is not why he 
stayed away from the Berlin 
ceremony. 

It was because, instead of 
being one of the acclaimed 
heroes of Germany, John has 
for the past 40 years been an 
on person, a political embar- 
rassment to the Federal 
Republic and, in the eyes of 
many, victim of a terrible mis- 
carriage of justice. 

Five years after the war he 
was appointed the first presi- 
dent of the Federal Republic’s 
Office for the Protection of the 
Constitution, a sensitive intel- 
ligence nnit intended to 
counter a resurgence of 


Nazism and Communist sub- 
version. 

On July 20 1954, the 10th 
anniversary of the anti-Hitler 
plot, John attended the com- 
memoration of the plot in Ber- 
lin. Later that day he disap- 
peared and timed up in the 
Soviet sector of the city, where 
he criticised trends in West 
Germany, including the linger- 
ing influence of the Nazis. 

He has claimed ever since 
that he was dragged and kid- 
napped as part or a Soviet 
operation to destabilise the 
west and that his remarks 
were made under duress. He 
also insisted that he bad 
betrayed no state secrets. 

That was his plea when, 18 
months later, he escaped bad. 
to the west He was tried for 
treason and sentenced to four 
years hard labour , double the 
term demanded by the prose- 
cuting counsel at the high 
court in Karlsruhe. 

For 40 years, John has main- 
tained his innocence and 
claimed his treatment by the 


court was influenced by a 
desire to punish him for his 
role In the anti -Hitler under- 
ground and by the fact that 
while others were executed 
after the failure of the plot he 
had survived to continue the 
figh t against Hitler. 


General Reinhard Gehlen, 
former Nazi and head of the 
Federal Republic’s counter-in- 
telligence network set up after 
the war by the Americans, 
said of John’s apparent defec- 
tion to east Berlin; “Once a 
traitor, always a traitor." 


After his release from 
prison, his reputation in tat- 
ters, John set out to clear Us 
name. As far as public opinion 
is concerned, he largely suc- 
ceeded. 

Leading politicians, sueh as 
the late Defence Minister 
Franz-Josef Strauss, and Dr 
Gerhard Schroeder, a former 
interior and foreign minister, 
accepted that John was a vic- 
tim, rather than a collaborator 
of the Soviets, and that he had 
not betrayed his country. 

But three times, John failed 
to ov e r tu rn the judgment of 
the Karlsruhe court He vowed 
that until he succeeded he 
would never again attend a 
commemorative meeting for 
the heroes of the July 20 con- 
spiracy. 

In Moscow last year, how- 
ever, John met two of the for- 
mer KGB officers who bad 
interrogated him in Berlin and 
Moscow immediately after his 
disappearance. 

They have once made sworn 
affidavits at the German 


embassy in Moscow indicating 
he was not a defector but that 
he had been abdneted by 
agents of the KGB as part of 
the cold war. 

Two weeks ago. a lawyer 
acting on John’s behalf incor- 
porated their statements in a 
new application to have the 
case reopened. 

If the court agrees, there is a 
chance that John’s reputation 
will at last be vindicated and 
he will no longer feel an out- 
sider in his own country. 

“I hope that the new genera- 
tion of German judges will be 
different from the ones who 
first sentenced me,” he said on 
the telephone this week. 

Meanwhile, there is no con- 
troversy about his role in the 
e vaits of July 20 1944 and in 
the straggle leading to Hitler’s 
final overthrow. 

A few hours after the bomb 
wait off in Hitler’s field head- 
quarters at Rastenburg on the 
morning of July 20. John was 
personally briefed by the man 
who had laid it near Hitler’s 


feet - Count Colonel Klaus 
Schenk von Stauffenberg. 

John had been in touch with 
leading anti-Naas since 1937. 
His friends included Klaus and 
Dietrich Bonhoeffer. two of 
the leading martyrs of the Ger- 
man resistance. 

From 1942, John had used 
his position as legal adviser to 
Lufthansa, the German airline, 
to act as the German resis- 
tance’s liaison with British 
intelligence. (The MI6 officer 
who evaluated it In London 
was Graham Greene, accord- 
ing to the new biography pub- 
lished this week, Graham 
Greene, The Man Within, by 
Michael Shelden, Heinemann.) 

Immediately after the events 
of July 20 1944, John escaped 
first to Spain and then, via 
Lisbon, to Britain, where he 
aided the BBC’s anti-Nazi pro- 
paganda, interrogated high- 
ranking German prisoners of 
war and, later, assisted the 
prosecutors at Nuremberg. 

However, in an ominous 
foretaste of John’s later mal- 


treatment by the Soviets, his 
entry to Britain was resisted 
by Soviet master-spy Kim 
Philby, who was Graham 
Greene’s boss in MiG’s Iberian 
Department. Stalin suspected 
that any contacts between 
Britain and the anti-Hitler 
resistance could have led to a 
separate peace between Ger- 
many and the west Daring bis 
18 months of captivity in the 
Soviet Union he was repeat- 
edly questioned about the pos- 
sibility or such a deal. 

John's main new Moscow 
witness, regarding the events 
of 1954, is ex-£GB General 
Eugeu Panyushkin who, John 
says, interrogated him in Ber- 
lin and Moscow. At that time, 
Panyushkin used the cover 
name “Chernov". 

But he is not sure that his 
appeal, if held, will succeed, 
and because of his age be 
would probably be dead by the 
time that happened. “I have 
had many disappointments 
over the years," he said. 

Today, John's strangest sup- 
porter, and closest friend, is 
86-year-old Prince Louis Ferd- 
inand. head of the Prussian 
former royal family. If the 
court allows his new appeal, 
John is expected to stay at the 
prince’s home in Berlin during 
the court hearings. 


A teenage girl with wide 
eyes and pierced nose 
was being led by one arm 
down to the holy lake. A 
bearded sadhu with a bare chest 
pressed flowers, sweets and a few 
grains of rice into her hand. “This 
is the ancient puja ceremony." he 
said, th ti m hing a red dot on to her 
forehead. 

“It's so cool." said the girl, who 
was called Caroline and was spend- 
ing a year in India before her first 
term at Oxford. 

“Repeat after me," said the holy 
man. “I pray for health, happiness 
and success . . . and I make a dona- 
tion of 100 rupees.” 

Caroline woke briefly from the 
spell. ’TOO. 1 How about 50?" The man 
suggested 60. “That’s cool," she 
replied, with a wide smile. 

Pushkar is a smalL pretty town 
built around an oasis on the edge of 
a desert in Rajastan. According to 
Hindu legend the god Brahma 
dropped a lotus flower there and a 
lake sprang up at the spot. For 
more tb3n 3.000 years, devotees 
have travelled from across India to 
worship at some of its 400 temples. 
Around 90 per cent of Pushkar s 
11,000-strong population is con- 
nected with the priesthood: the 
other 10 per cent appear to work in 
the tourist trade. Some people, like 
Caroline’s friend, dabble in both. 

Pushkar’s tranquility. idyUic set- 
ting and air of authentic spirituality 
have made it a popular pit-stop on 
the Indian tourist circuit. Many vis- 
itors find it an antidote to the chaos 
of the big cities and stay for weeks 
at cheap backstreet guest houses. 
As a result, unsuspecting Pushkar 
has become a hippy hangout 
Along the narrow main street 
dodging cows and bicycles and holy 
men and beggar-women, stroll 


Dispatches /Pushkar, India 

Hare Krishna and banana shakes 


Mark Hodson hangs out in a 
hippy-filled corner of Rajastan 



Europe’s dropouts in tie-dye trou- 
sers and embroidered waistcoats. 
Following them from shop door- 
ways come familiar whispers: 
“Hello friend, good hash, change 
money, buy something.” 

Because Pushkar is a holy place, 
alcohol, meat and even eggs are 
h arm ed, and signs warn foreigners 
against kissing in public. Yet 
almost anything else seems possi- 
ble: you can get a shave and a mas- 
sage in five languages, buy uncut 
rabies and chocolate biscuits, drink 
milk-shakes and eat Chinese and 
swap your copy of Midnight's Chil- 
dren for a dog-eared City of Jay. or 
Zen and the Art of Motorcycle Main- 
tenance. One shop front promised: 
"Ear and Nose Hole Possible Here.” 

At fa" it was still dark as dozens 
of temple bells rang to summon the 
faithful to icy dips in the lake. Pil- 
grims, shivering and fully-clothed, 
bathed at the white-washed ghats 
lining the shore. 

At the top of a steep hill overlook- 
ing the town there is a 2,000-year’ 
old temple where a sad-looking 
priest swathed in saffron gave me a 
cup of steaming tea as we watched 
the sunrise together. Through my 
telephoto lens he studied the squat 
buildings below, clustered around 
the tiny square of water. Then he 
asked how much the camera cost 


“More than 10 English pounds?" 

Distant drums pounded as the ris- 
ing heat brought the desert to life. 
Monkeys appeared and parrots, 
then great vultures launched them- 
selves into the air with a single flap 
of their wings, circled slowly and 
returned to their branches to wait 

On the path back into town a 
small boy was herding goats as a 
pair of wild peacocks danced 
through the dust At Sanjay's Roof- 
top Restaurant there were fairy 
lights above the door, too late for 
Diwali, too early for Christmas. 
Over a breakfast of porridge and 
honey toast I listened to two dazed 
German hippies argue about how 
much dope they had smoked the 
previous evening, until their 
slurred protestations were drowned 
out by a screeching tape playing 
one, seemingly Interminable song: 
“Hare Krishna, Hare Krishna, 
K rishna Krishna, Hare Hare ...” 

Outside, a sadu with long white 
beard and ashtray specs, as skinny 
as a dog. was washing himself 
under a banyan tree. He reached 
with a bar of soap into the depths of 
his loin cloth and a hippy girl in 
and sandals averted her eyes. 

By mid - mommg the first pilgrims 
had arrived: Indian families on day 
trips from Delhi and Jaipur clutch- 
ing packed lunches and d rinks 


flasks. As they hurried from one 
holy place to another dressed in ill- 
fitting suits and Simday-best saris, 
they threw bemused glances at the 
brightly-coloured hippies. 

At the red-spired temple dedi- 
cated to Brahma, beside a sign say- 
ing “Donate For Cows", a smartly- 
dressed young man clutched my 
hand and said: “Give me your 


address and we will be best 
friends." Disarmed. I obliged, 
although 1 am still waiting for him 
to write. 

Hie temple floor was carved with 
memorial stones and. beside the 
names of the dead, the marble was 
inlaid with silver rupees bearing 
the heads of George V and Edward 
VO. reminders of an earlier, west- 


ern presence. 

For one week in November, Push- 
kar bursts into life and colour when 
its annual camel fair attracts up to 
200.000 villagers from across Rajas- 
tan. Prices at hotels and. restaurants 
soar and the barefoot budget travel- 
lers move out to make way for 
well-heeled tourists and film crews 
from Tokyo, Paris and New York. 


When the dust has settled and 
tariffs have fallen back to earth, the 
hippies return to find the same bars 
blaring out the same old Rolling 
Stones records, tbe shops selling 
the same Kashmiri carpets - possi- 
bly silk, possibly not. 

Those who linger in Pushkar per- 
haps know it is not the “real India” 
- no single place could encapsulate 
the seething sub-continent - but 
this desert oasis is closer to their 
dreams of India than the heaving, 
polluted cities that surround it 

And everyone is a winner in such 
a glittering collision of cultures. 
The grinning Indians provide colour 
and chicanery, blessings and badly- 
made clothes. In return, the west 
sends its great unwashed - gangly 
youths with tattoos and matted hair 
who exchange hard currencies for a 
piece of potted mysticism and 
cheap, worthless bangles and beads. 

At the Palace Hotel, a former 
home of the Maharaja of Kishan- 
garh and now, at £5 a night, the 
most expensive place to stay in 
Pushkar. guests were taking their 
positions for cocktail hour. We sat 
on the lawn in wicker chairs to 
watch tbe sun dip behind far-away 
hills turning the sky pink and gold. 

Expert advice was offered as to 
the exact moment to take photo- 
graphs (“Now man! This is it, per- 
fect, take the thing*”). The sound of 
temple bells drifted on the evening 
breeze and, in the parched section 
of the lake, schoolboys played 
cricket with a homemade bat 

Later I returned to Sanjav's Roof- 
top Restaurant. The same tape was 
playing. “Hare Krishna, Hare 
Krishna, Krishna Krishna, Hare 
Hare." Only this time the shrill, 
insistent tones seemed strangely 
soothing: I ordered a banana milk- 
shake. 










x WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


*■ 

SPORT AND MOTORING 


Tennis /John Barrett 

Left with the legend of Borotra and Hoad 



•lean Borotra hi 1929: mastar of psychology Huaan qbucsck 



I t is one of life's hard 
lessons that nothing is 
for ever. In the past two 
weeks the lesson has 
been particularly hard 
to bear with the passing of two 
tennis legends who were both 
old friends. 

On the day when the 22-year- 
old American Pete Sampras 
was adding to his fame in this 
year’s Wimbledon final. Lew 
Hoad, the great Australian 
champion of the mid-1950s, 
died aged 59 near his home in 
southern Spain following a 
short illness. 

Like Sampras, Hoad had suc- 
cessfully retained his Wimble- 
don title in 1957, the first post- 
war champion to do so. Since 
that day only Rod Laver, Roy 
Emerson, John Newcombs, 
Bjorn Borg, John McEnroe, 
Boris Becker - and now Sam- 
pras - have achieved the feat. 

Last Sunday, 450 of us. all 
friends of Lew, gathered with 
his wife Jenny, son Peter, and 
two daughters, Jane and Sally, 
to celebrate his life on the 
lawns of their Campo de Tenis 
in Fuengirola. Later that day. 
we heard that just across the 
French border, near Domaine 
de Pouy, his original home 
near Biarritz, Jean Borotra, the 
Bounding Basque of French 
tennis in the 1920s, had died, 
aged 95. 

These last few days, the cam- 
era shutter of memory has 
clicked constantly. There are 
vivid pictures of both men: 

■ Hoad smiting that mighty 


backhand to destroy Ashley 
Cooper 6-2 6-1 6-2 in the 1957 
Wimbledon final, one of the 
shortest on record. 

■ Borotra, aged 51, leaping 
like a gazelle for a backhand 
volley on the old East Court at 
Queen's Club in 1949 to beat 
27-year-old Geoff Paish for his 
llth British covered court title. 

■ Hoad lifting an inebriated 
Roger Becker to his feet at the 
New Fttz Club in Bournemouth 
during the hard court champi- 
onships of 1957 and carrying 
him out to his car with one 
strong arm. 

■ Borotra arriving late for a 
lunch of the International Club 
of Great Britain and going 
around the room kissing the 
hand of every woman present 

Each man had that elusive 
quality, charisma, and each 
contributed greatly to the evo- 
lution of the game. Borotra. 
without much of a serve, 
showed what could be accom- 
plished as a volleyer if you had 
fast enough feet, hands and 
reflexes - all qualities he had 
developed as a pelota player in 
his youth. 

He was also a master of 
match-play psychology - per- 
haps even the inspiration for 
Stephen Potter's marvellous 
works on Gamesmanship and 
Lifemanship. He would make a 
great show of donning the 
beret to rouse the crowd and 
would delight them by leaping 
into the lap of a pretty girl in 
the front row. 

He was always chivalrous 


and would applaud an oppo- 
nent’s good shots. At a change 
of ends Jean might say: 
M . . . well done! You are hitting 
your service so beautifully 
today - I’ve never seen you hit 
it better.'* You would spend the 
next five minutes wondering 
what made the shot special 
and. bey presto, you had lost 
your serve. 

He had tremendous energy 


and enthusiasm. In the 1960s, 
when I was managing a British 
team at the French champion- 
ships, Jean persuaded me to 
partner him in the doubles. He 
was well into his 60s and 
insisted that we limber up in 
the Bois de Boulogne prior to 
combat Mercifully, we lost our 
first match and I was spared 
further torture. 

Jean was also a great patriot 


for whom the six years of 
French Davis Cup dominance, 
from 1927 to 1932. with his fel- 
low Musketeers, Henri Cochet, 
Rene Lacoste and Jacques 
“Toto" Brugnon. represented 
all that is best in sport 
The comradeship of those 
days - all for one, one for all - 
never died. All four were dedi- 
cated to the ideals of the Inter- 
national Club of France, estab- 


lished in 1929, following the 
founding of the British Club 
five years earlier by Wallis 
Myers, a former international 
player who was then tennis 
correspondent of the Daily 
Telegraph. 

The two clubs have met 
twice a year since 1929 and 
Jean's incredible record of 
playing in every one of them 
until last November - 116 in 


all - is surely unique. 

Borotra inspired successive 
generations of French players 
and was there at the Davis Cup 
final in Lyon three years ago 
to see Yannick Noah's team or 
Guy Forget and Henri Leconte 
score their famous victory over 
the US, led by Andre Agassi 
and Pete Sampras. He shed 
tears of joy at the end. 

Hoad, the forerunner of 
today’s power players, had a 
tremendous physical presence 
on court that would often 
intimidate opponents, although 
he was actually a very shy 

man . 

With the blond good looks of 
a Robert Mitchum, Hoad was 
also immensely strong thanks 
to a training regimen that was 
unusually advanced for that 
era. 

With a powerful forearm and 
wrist he could hit the ball hard 
and early only because he pos- 
sessed sound stroke production 
plus a natural ability to time 
the ball perfectly - essential 
qualities for success with a 
wooden racket that was 26in 
long, tin shorter than the con- 
ventional frame. One shudders 
to think what devastation 
Hoad would have caused using 
a graphite frame. 

Hoad's first great perfor- 
mance came in the Davis Cup 
challenge round of 1953 against 
the US. played in Melbourne. 
Harry Hopman, the Australian 
captain, decided to blood the 
"twins'* Hoad and Ren Rose- 
wall, who were both 19. The 


key to success lay In finding a 
way to beat the top American. 
Tony Trabert. 

On the opening day Trabert 
beat Rosewall and Hoad beat 
Vic Seixas. The Americans also 
took the doubles, so the fourth 
rubber, Hoad vs Trabert, would 
probably decide the tie. In a 
magnificent match, played in 
intermittent drizzle and with 
both men wearing spikes, Hoad 
won 7-5 in the fifth set The 
next day Rosewall duly beat 
Seixas and tbe cup remained in 
Australia. 

Playing Hoad was an instruc- 
tive experience. I had lost to 
him in the third round at 
Wimbledon that year and 
remember wondering why I 
was so slow. When you went to 
tbe net. tbe ball seemed to 
come at you just that bit faster 
than expected. Consequently, 
you were late on fixe volley. At 
the baseline the ball would 
bounce so close to the line that 
you always felt rushed. 

Three years later, Hoad 
made everyone look slow as he 
beat his old friend Rosewall to 
win the first of his two 
Wimbledon titles. Already the 
winner in Australia and 
France in 1956. Hoad needed to 
win tbe US title to achieve the 
grand slam, a feat accom- 
plished only once before, by 
Don Budge in 1938. By a twist 
of fate it was Rosewall who 
beat him in the US finaL 

Champions come and go but 
it will be a long time before we 
see two such great ones again. 



England’s John Crawley fumbles a catch as South African batsman David Richardson looks on at Lord's yesterday 


Cricket /Simon Hughes 

Lord’s be praised 


F or once at a Lord's 
Test, tbe focus is on 
the cricket rather 
than the salmon en 
croute. South Africa are 
playing there for the first time 
in a generation and thousands 
of pairs of eyes have been 
locked on the drama unfolding 
on the field. 

Sometimes, people forget 
that Lord's is more than five 
acres of manicured turf and a 
sloping pitch that baffles inex- 
perienced bowlers. U is also a 
living, working monument to 
cricket 

I am not referring to the 
Jingdezen punch bowl circa 
1786 exhibited in the pavilion - 
a unique piece of Chinese por- 
celain - or to the oil paintings, 
the miniature urn containing 
the original Ashes or the 
stuffed sparrow which was 
struck by a delivery one day in 
July 1936. (Both the sparrow 
and the ball were pronounced 
dead.) The pavilion is just one 
facet of a great ground. 

But there are other nooks 
and crannies from where you 
can actually see something 
alive and kicking. Take the 
new Mound Stand, for 
instance. At the top is tbe 
debenture area where the 
wealthy ami privileged enjoy 
the best view there is. 

Lolling under the swirling 
roof feels a bit like watching 
the game from a marquee with 
the flaps up - far better than 
the cramped breeze-block hos- 
pitality boxes directly below. 
Within, there is an audible 
buzz as people who have 
stumped up a cool £3,000 inter- 
est-free mingle at the bar or 


loiter on the precipitous stairs. 
"Do they still have sixes in 
cricket?" asks a man with a fat 
cigar who looks about to keel 
over. 

Most people are in blazers 
and slacks but down below, in 
the public seating, there are 
panamas and large men with 
bare torsos ignoring the advice 
from the public address that in 
this heat, sunburn occurs in 35 
minutes. They will have paid 
£38 for a seat, something of a 
hike from the equivalent of 75p 
it would have cost a spectator 
the last time South Africa were 
at Lord's. 

T he upper reaches of 
the Mound Stand are 
presided over by Eric, 
a jovial Jamaican, 
who has stewarded at the 
ground since 1957. He issues 
passes and greets regulars with 
a broad grin. He is the antithe- 
sis of the dreaded Lord's gate- 
men. VIPs and hangers-on are 
ferried between levels by a 
small lift manned by an elderly 
attendant who has not seen a 
ball bowled all day. 

Directly opposite, across the 
field, is the Grand Stand, 
crowned by Old Father Time, 
the weather-vane. Because of 
the prevailing wind. Father 
T ime usually has his back to 
the cricket. Beneath are the 
scorers in their cluttered 
perch, putting dots in books - 
quite a lot while Kepler Wes- 
sels was batting - or fiddling 
with computers. A woman sits 
in the corner programming the 
electronic scoreboard. 

At ground level, with barely 
a glimpse of the cricket, Vince 


and Charlie hand-set the old 
Heidelberg printing press 
because there is an urgent 
demand for more scorecards: 
"We’ve sold 9.000 already 
today," Vince says proudly. 
The room has a curious aroma 
of inky mustiness and is a 
museum in its own right, with 
score-cards dating back to the 
1924 South African Test, old 
signed bats and letters from 
Harold Larwood. Thursday’s 
card was updated at the close 
of play, and later a queue 
developed for souvenirs. 

Meanwhile. Wessels, the 
South African captain, was 
chiselling runs in his awkward, 
crabby way, oblivious to the 
masses desperate for excite- 
ment. MCC members removed 
their jackets and loosened 
their ties and the deep purple- 
ness of their faces seemed ever - 
so slightly to subside. 

When the lunchers returned - 
to their seats at about 4pm, the - 
score had hardly changed. "Bit 
slow," people muttered, "but 
it’s understandable, it's their 
first match back.” 

Which is not quite true, of 
course. This Test is actually 
the South Africans' 15th since f 
re-admission to world cricket • 
2Vi years ago, and they have ! 
become a tough, resilient unit, . 
if not a devastating one. 

Their cricket has been full of ; 
great commitment and passion, . 
with just one ironic twist The 
South African team is still all- 
white: their most talented ■ 
black player, Jacob Mulao, a . 
Sowetan left-arm spinner sec- - . 
onded to the MCC this sum- ■ 
mer, was in a small booth sell- 
ing score-cards. 


Motoring 

Promise unfulfilled 


W hen Audi 
unveiled the first 
Quattro at the 
Geneva Show in 
1980, it seemed that all high- 
performance cars of the future 
would have full-time 
four-wheel drive. Having tried 
it, I certainly thought so. 

The ease with which this 
potent turbo-charged coupe 
could be driven quickly and 
safely on surfaces ranging 
from dry tarmac to loose 
gravel and frozen slush was a 
new experience. 

That was in 1980. Actually, 
the Quattro was not the first 
4x4 road car of its kind. Jensen 
had beaten Audi to it by some 
years with the FF model. But 
Jensen made only a small 
number of FFs and. sadly. I 
never got my hands on one. 
The Quattro started a trend 
that other volume makers fol- 
lowed. 


Four-wheel drive has since 
swept the world of rallying but 
not of normal motoring. For 
road cars, it is a story of prom- 
ise unfulfilled. Audi still offers 
the quattro with all-wheel 
drive transmission on its com- 
plete range. There have been - 
in some cases there still are - 
all -wheel driven versions of 
cars such as the Ford Scorpio 
and BMW 5-Series, Porsche 911 
and Peugeot 405. 

They are, however, a minor- 
ity choice. And most of the 
really high-performance cars - 
Ferraris, Aston-Martins, BMW 
8-Series, Mercedes SL and so 
on - are rear-wheel driven. 
Motorists associate four-wheel 
drive road-going vehicles 
mainly with keeping going in 
snow. Very good they are at it, 
too. (Paradoxically, 4x4 on-off 
readers are much less popular 
hi Lapland, where winter lasts 
for six months, than in 
England's lifestyle-conscious 
home counties. Northern Scan- 
dinavians rely on spiked snow 
tyres and, to a growing extent, 
traction control.) 

By matching power output to 
tyre grip a traction control sys- 
tem (TC$) curbs wheelspin on 
slippery surfaces. Cars fitted 
with it are unfazed by snowy 
hills. Just as significantly, they 
do not become unruly if accel- 


erated savagely, or cornered 
imprudently fast, on wet roads. 

TCS is now standard on 
some cars with an abundance 
of power (such as the latest 
turbocharged Rover 600ti and 
Vitesse Sport) and offered by 
manufacturers as an option on 
others. They have been per- 
suaded that it gives many of 
the benefits of permanently 
engaged four-wheel drive with- 
out the extra weight, complica- 

i Stuart Marshall 
asks why 

four-wheel drive is 
not more common 


tion and cost. 

Subaru begs to differ. It is 
wedded to four-wheel drive. 
Apart from a recently intro- 
duced front-wheel driven entry 
model Impreza family saloon 
or hatchback, it has sold noth- 
ing but four-wheel drive cars 
for years. 

Currently they range from 
the tiny Vivio (£7,047), super- 
mini-sized Justy (from £8,149), 
Impreza 4WD (from £12,849) 
and Legacy (£13,999 upwards) 
to the stunning SVX, at £30.849 
perhaps the most pleasurable 


MOTORS 


Hosoop Lamb often me LS400 Ft £31 f .00 
pm and GS300 Fr £369.00 pm. 
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high-performance coupe I have 
driven. 

When Subarus were first 
sold in Britain more than 20 
years ago they had a simple 
kind of selectable four-wheel 
drive. Normally, the power 
went to the front wheels. When 
you felt the need for extra trac- 
tion, you switched it through 
to the rear wheels as welL 

These early Subarus had 
high and low ranges of gears in 
four-wheel drive and were 
astonishingly capable off-road. 
Just how good I discovered oo 
a military vehicle testing 
ground. Over terrain many 
owners of full-blooded on-off 
road 4x4s would not dream of 
venturing on, the Subaru Just 
kept going, climbing l-in-3 
slopes, sliding its well- 
protected underside over high 
humps and plunging through 
wellie-deep water. 

Of course, knowing that a 
monster crosscountry vehicle 
is ready to pull you out should 
you get stuck makes one feel 
very brave. I would not have 
gone where I did if my only 
recovery equipment had been a 
shovel. But country people 
who really have to drive across 
their own muddy fields and 
pull sheep trailers up steep 
bills know Subarus are very 
hard workers. Yet they behave 


tike normal cars on proper 
roads. 

The latest Subaru to come 
my way was the 208 horse- 
power Impreza Turbo 2000 
4WD. In common with all 
Subarus, apart from the Vivio 
microcar. It has an engine with 
horizontally-opposed cylinders 
- the kind Germans call a 
boxer. Like its Ford counter- 


part, the Escort RS Cosworth, 
it is based on a rally car but 
bas been civilised for road use. 

It has far more performance 
than could possibly be 
exploited on the highway: a top 
speed of 142mph/229kph and 
0-60mph/96kph acceleration of 
6.3 seconds are claimed. 

What its four-wheel drive 
means in day-to-day motoring 


is complete sure-footed ness 
regardless of road surface. The 
Impreza has power steering, 
driver’s airbag and anti-lock 
braking as standard at £17.499 
for the 4-door saloon, and 
£17.998 for tbe 5-door hatch- 
back. Its insurance group is 17 
compared with an Escort Cos- 
worth's 20 and it comes with a 
three-year/60.000 mile 


(96,600km) warranty. 

The ride is firm, with, some 
tyre thump, and the transmis- 
sion majors on ruggedness. It 
seats four comfortably, five at 
a pinch, and has ample luggage 
space. But with all that eager 
performance it Is not a car J 
would recommend to anyone • 
with driving licence penalty 
points. 












FINANCIAL TIMES WEEKEND J ULY 23/JULY 24 1994 


WEEK-END FT 


TRAVEL 


E ast from the game 
and church towers 
of Carrion de los 
Condes, the N-120 
runs arrow- 
straight over the red-soiled, 
table-top-flat plain of Spanish 
Castile. It is a quirt road these 
days: often there is not a car, a 
house, a person or any sign of 
life to be seen, even to the tree- 
less horizon. It is a road bunt 
for speeding. 

Without my noticing it. my 
speedometer crept well over 
the limit And etfll I felt I was 
crawling. Where was Santiago? 
I was feeling impatient, tired 
and, in spite of my destination, 
profane. I had been driving for 
two days From Arles in 
southern France, and was still 
350km short of my goal. I had 
wanted to arrive before dark. 

As a result, they wait by in 
a fla sh. I hardly noticed them 
until they were in my rear- 
view mirror - two middle-aged 
men in walking boots, trudging 
along the roadside with packs 
on their backs and staffs in 
their hands. In seconds they 
were faint dots of colour 
picked out by the evening sun; 
then they were nothing. 

But they stayed in my mind. 
Like me, these men were on 
their way to Santiago de Com- 
postela. 

Unlike me, they were pil- 
grims, and they were walking: 
For them this was not just the 
N-120. This was the old route of 
the Carntno de Santiago, the 
way of Saint James - for mil- 
liras in the Middle Ages the 
most important and challeng- 
ing pilgrim trail in Europe. 

It is still trudged by the 
faithful today. Had 1 walked 
from Arles - one of the four 
main points of pilgrim depar- 
ture since the 12th century - 
the trip would have taken me 
eight weeks. 

How far had those two 
middle-aged men come? Where 
would they spend the night? I 
did not know. But suddenly 
haste seemed less important 1 
slowed down and, many hours 
later than I expected, drove 
into the holy city at a contem- 
plative doddle. 

I headed where pilgrims 
have headed for more than 500 
years - the Hostal de Los 
Reyes Catolicos. It is, say 
some, the oldest hotel in the 
world, having been built as a 
pilgrim hostel by the Roman 
Catholic monarchs Ferdinand 
and Isabella in that momen- 
tous year, 1492. 

However. I doubt if it was as 
comfortable then as it is now. 

It has kept all its renaissance 
elegance, a rich facade, and 
four dignified interim' cloisters 
with fountains, gargoyles, 
stone pillars and arches. There 
is still a Gothic chapel and, 
overlooking it, a Sala de Agoni- 


First stop, Santiago. Destination, heaven 

Nicholas Woodsworth embraces the icon of St James of Compostela after following a trail worn by the faithful for centuries 


zadas - a room where the sick 
and dying attended masse* 
from their beds. 

. Today, Los Reyes Catolicos 
is a parador. The pilgrims’ 
ceOs have been converted b>tn 
rooms and suites and the cha- 
pel given over to art exhibi- 
tions and musical concerts. 
The Sala de Agonizadas, due to 
its perfect acoustics, became 
for many years the favourite 
recital room for dassira i gui- 
tarist Andre Segovia. 

I slept in the hotel like a 
coddled king . The place still 
serves a charitable purpose, 
though: anyone presenting a 
Compostela — a sort of pilgrim's 
passport showing stamped 
church authentication of the 
pilgrim route followed - is 
entitled to dine here free of 
charge. 

Had I been a pilgrim, 1 tfrinir, 
I would have been just as 
happy to get in from the wet 
weather as 1 would to eat The 
rain in Spain is not on the 
plain at all, but in the Rstiirtm 
hills surrounding Santiago. So 
wet is this north-west Atlantic 
coast that the city's brief but 
repetitive showers have gained 
the title of the “urinal of 
Spain". 

So, first things first: off I 
rushed in the pelting rain and 
met Luis Sanchez Rivas, who 
owns a small, old-fashioned 
shop, a paragueria devoted 
exclusively to the sale of 
umbrellas. A precise, elderly 
man, he is in the busi- 
ness as Us father and grandfa- 
ther before hhn. 

“Sixty years ago it rained 
here a lot more." he said as we 
reviewed a long row of solemn 
black umbrellas standing 
furled in glass- fronted cases. 
“It hardly rains here at all 
now." 

I looked doubtfully from the 
window into a street streaming 
with water. We were practi- 
cally shouting at e ach other to 
be heard over the rain. Finally, 

I made the choice of a nifty 
collapsible number and 
stopped Sefior Sanchez from 
wrapping it 

“In any case,” he said, hand- 
ing the umbrella over, “we Hkn 
our rain here. You’ll find it 
suits the city and its mood bet- 
ter than any other weather. 
There is nothing finer than 
walking through Santiago in a 
good flalician shower." 

He was absolutely right. 
Santiago, for all its medieval 
magniflcpin* — the entire old 
city has been declared a 
national monument - is a sol- 
emn and austere place of sil- 
very rain, shifting, moody 
clouds and glistening grey 
stone. 

Despite the crowds of stu- 
dents and the gaggles of tour- 
ists. there is something grave 
and solemn about the great 



St James's Day, Santiago da Compostela: some pflgrana wale from as far away as Poland 


granite blocks from which the 
whole city is built; about the 
slow, heavy, dull ringing of the 
cathedral hells; about the semi- 
naries, monasteries, archbish- 
op’s palaces, convents, rha ppis 
cloisters and crypts that sit sol- 
idly and imperturbably at 
every turn in the street 

This is a monochrome city, 
unaccepting of colour or the 
vanity of individualism. It is 
single-minded in c o n str u ct i on 
and uniform in purpose - the 
submission of human achieve- 
ment before a greater glory. 

I strolled the city for hours, 
wandering under stone 
arcades, stumbling across hid- 
den plazas, admiring th«» dean 
Romanesque lines of its build- 
ings. I marvelled to think of 
this sophisticated place built 
so long ago in a rainy and wild 
region so remote from the rest 
of Europe. What made Sant- 
iago such a magnet that in the 


12th century, at a time when 
people rarely ventured for from 
home, the city was attracting 
over 500,000 pilgrims a year? 
Only faith could have done it 

The legend of Saint James’s 
burial in Spain seems to have 
very little basis, but that 
hardly seems to matter. What 
does matter is that for centu- 
ries minions have believed that 
a pilgrimage here virtually 
assured their passage to 
heaven. 

Due to the great power of 
Saint Janies, simply arriving 
here - not to mention the 
indulgences and remissions 
that could be picked up along 
the way - guaranteed a halv- 
ing of time spent in purgatory. 
This was worth the consider- 
able risks and hardships of the 
journey. 

And what about these days? 

“It is as tough a walk now as 
it was eight centuries ago," 


Canon Jaime Garcia Rodriguez 
told me when I dropped into 
the pilgrims' welcome centre. 
In 23 years of work in Sant- 
iago, the canon has met ten* of 
thousands of pilgrims, some 
walking from as far away as 
Poland. Last year, a special 
year because the saint’s day 
fell on a Sunday, more than 
99.000 pilgrims received com- 
posts las. 

And where does the pilgrim 
trail lead? 1 attended a pil- 


grims' mass at Santiago cathe- 
dral. and began to understand 
some of the reverence that has 
made James the patron saint of 
Spain, anri has made Santiago, 
along with Rome and Jerusa- 
lem, one of the three holy 
cities of Christendom. 

Santiago’s cathedral is huge, 
ornate, complex and riotously 
embellished. Inside , behind a 
facade decorated with some of 
the finest Romanesque sculp- 
ture in the world, is an altar 


even more lavish in style. At 
the heart of a fantasy of silver 
and gilt, cherubs and massive 
han g in g chandeliers, is the sil- 
ver and jewel-studded image of 
Saint James. 

It is an icon up to which 
every visitor climbs in order to 
bestow an embrace. Not a regu- 
lar church-goer myself, not 
even a practising Christian. I 
did the same, and thought of 
the two pilgrims still slogging, 
tired but expectant, along an 


EtfBUtaqurtCM» 

arrow-straight roadside some- 
where in Castile. 

■ Nicholas Woodsworth's trip 
to Santiago teas arranged by 
Mundi Color, a company spe- 
cialising m tailor-made Spanish 
travel: 276 Vauxhall Bridge 
Road. London, SWJV 1BE. Tel: 
071-828 6021. 

Information about Santiago 
can be obtained from the Span- 
ish Tourist Office. 57 St James’s 
Street, SW1A 1LD. Tel: 071-499 
090L 


The sound of legend 


U ntamed for 3,000 
miles, the Atlantic 
ocean crashes in 
through the mouth 
of Uiamh Binn. the musical 
cave. Foaming cascades surge 
over black prismatic columns 
of basalt. We cling to the rocks 
under 10,000 gleaming black 
polygons of the cavern roof. No 
one speaks. We frail humans 
are mesmerised by the awful 
power of raw nature, and gaze 
down at the relentless ebb and 
flow, silent witnesses to the 
geophysical copulation of sea 
and rock. 

In 1772 Sir Joseph Banks, the 
naturalist who sailed with Cap- 
tain Cook, was on his way to 
Iceland. Storms forced him to 
seek shelter off the west coast 
of Scotland: once the weather 
had cleared, locals urged him 
to visit the musical cave. Thus 
was the tiny isle of Staffs put 
on the map. 

Subsequent illustrious visi- 
tors were equally impressed. 
“It surpasses the finest cathe- 
dral," wrote John Keats of Fin- 
gal's Cave, a 220-ft long cavern 
named after Finn McCoul, the 
legend also credited with the 
construction of the Giant’s 
Causeway in Ireland. 

Felix Mendelssohn, although 
suffering from toothache and 
seasickness, was enchanted: 
“Like the interior of a gigantic 
organ for the winds and tumul- 
tuous waves to play on." On 
the spot he scribbled 20 bars of 
music which became the theme 
of his Hebridean Overture. 

Six miles south, past the 
Treshnish Isles and the famous 
silhouette of the Dutchman's 
Cap. lies Iona. Cojumba and 
his 12 disciples arrived at the 
“Cradle of Christianity" from 
Ireland in 563 AD and built a 
monaster}'. Vikings vandalised 
it over the next 400 years. In 
1230 Benedictine monks built a 
new one. which was torched 
during the Reformation. The 
present abbey is mainly 16th 
century, with later additions. 

The oldest building on Iona 
is St Oran’s Chapel. Columba 
received a message from 
heaven telling him a human 
sacrifice must be buried under 
the new chapel. His disciple 


Oran volunteered. Three days 
later (the story goes) Columba 
opened the grave for a last 
look at his friend. Oran was in 
fine form. 

“There is no wonder in 
death," he told Columba, “and 
hell is not as it is reported." 
Stunned by such sacrilege, 
Columba reburied Oran with 
the prayer “Earth, earth, fill 
the mouth of Oran that he may 
gossip no more." 

Nearby, the chapel cemetery 
contains the graves of 48 Scot- 
tish kings, and several Irish 
and Norwegian ones. King 
Duncan lies here, murdered by 
Macbeth in 1040. dose by the 
abbey are Celtic high crosses 
richly decorated with carvings- 

Not even the most hardened 
atheist could be unimpressed 
by Iona. S ummer tourists make 
little impact on the serene 
atmosphere. Quartzite rock 


named the Canadian city. At 
Dervaig, Mull Little Theatre, 
with 37 seats, is said to be the 
smallest in the world. The 
stage has room for just three 
actors; if the production 
requires more they have to be 
played as puppets. 

hi the Mishtilsh. Quirdsh and 
Momish areas of north Mull it 
is worth climbing to a view- 
point: Cruacb Sleibhe, for 
example, an undemandin g 
600ft On a clear day you can 
see to the west the islands of 
Con and Tiree in the Atlantic; 
to the north, beyond Ardna- 
murchan Point most westerly 
on the British mainland, the 
“Small Isles": Rhnm. Eigg, 
C arina and Muck- 
South of Calgar y the island 
of Ulva borders Loch na Real, 
the “dark Loch Gyle" of 
Thomas Campbell's ballad. 
Lord Win’s Daughter. The loch 


Adrian Gardiner is impressed by the 
natural wonders of the Western Isles 


sparkles in the sunlight, which 
turns the sea azure. Columba 
chose his site welL 

Staffa and Iona lie off the 
Ross of Mull, the south-west 
corner of the foie of MulL “Oh 
Sir,” said Doctor Johnson, "it 
is a most dolorous country." 
No doubt it was in those days. 
The Highland clearances were 
in full swing: brutal acts of 
revenge prompted by the Hano- 
verian Georges against those 
Highlanders who had sup- 
ported the Jacobite cause. 

Dolorous no; but Mull Is fre- 
quently wet Tobermory is the 
busy capital- Built 200 years 
ago, it never quite lived up to 
its founders' expectations as a 
major fishing port, but is a 
favourite yacht anchorage. 

Bounty hunters frequent the 
depths of Tobermory bay. In 
1588 Donald Glas MacLean. a 
h ostag e aboard the galleon San 
Juan de Sicilia, set fire to the 
ship’s and went to 

the bottom with her. 

West of Tobermory are the 
white sands of Calgary.a ham- 
let after which emigrants 


is the haunt of seals and harm- 
less bpriring sharks. 

In the Western Isles things 
nhang p slowly if at all - part of 
their attraction for cosmopoli- 
tan visitors - bat last year a 
visitor centre and Clan 
Museum opened on Ulva. The 
tiny island boasts two minor 
celebrities: the father of 
explorer David Livingstone, 
and Major-General MacQuar- 
rie, the founder of New South 
Wales. The Ulva ferry, a two- 
minute trip, must be the short- 
est in Britain. 

There are two venerable cas- 
tles in the south-east of MulL 
Duart Castle greets travellers 
on the Oban ferry, and has 
been guarding the entrance to 
the Sound of Mull for seven, 
centuries. Torosay Castle has a 
famous Italian statue walk in 
its formal gardens and is 
linked to Craignure, the ferry 
terminal, by a narrow-gauge 
s team and diesel railway. 

Oban, three hours north of 
Glasgow by rail, four by road, 
is the gateway to Mull, Iona 
and Staffa; to Colonsay. Coll 


and Tiree. The town is a tour- 
ist centre in its own right and 
in July and August the popula- 
tion expands five-fold to 35,000, 
turning it into a lively resort 

In Oban we meet another ref- 
erence to FingaL On the east 
side of Oban Bay is the Clach 
a’Choin, or Dog Stone, to 
which Ping a l tethered his mas- 
tiff Bran. But Oban's most 
famous landmar k fa McCaig's 
Folly, an incomplete Colos- 
seum lookalike. It was 
intended to be a lavish art gal- 
lery and museum bat local 
banker John Stuart McCalg 
went bankrupt. As Robert 
Bums wrote: “The best-laid 
schemes o’ mice an’ men Gang 
aft a-gley." 

■ For accommodation, contact 
the West Highlands and Islands 
Tourist Board, Albany Street, 
Oban PA34 4AR. Tel: 
0631-63122. Ferry timetables 
from the haul office of Caledo- 
nian MacBrayne, Ferry Termi- 
nal, Gourock PA19 1QP. Book- 
ings: contact the Oban office. 
Tel: 0631-66688. 

A ferry (cars prohibited) runs 
from Fionnphort on Mull to 
Iona. To visit the Small Isles 
(round trip nine hours) depart 
from Mallaig near Fort Wil- 
liam. Islay and Jura are best 
reached from Ketmacraig, near 
Tarbert, halfway down the Mud 
of Kmtyre. To Islay takes two 
hours, to Jura another five min- 
utes. Calmac offers bargain 
tickets for those making several 
journeys. 

From Oban, Calmac runs a 

Three Isles Tour, May to Sep- 
tember - an all-day trip by 
coach, ferries and motor launch, 
visiting Staffa. Mull and Iona, 
weather permitting. The cost is 
£21 adult, £11 child: very good 
value. 

The most luxurious tray to 
see the Western Isles is aboard 
the concerted ferry Hebridean 
Princess. Depa rt u re s are from 
Oban and Kyle of Lochalsh, 
with prices starting at around 
£500 for a three-day cruise, 
inclusive of meals and excur- 
sions to castles, distilleries, etc 
Contact Hebridean Island 
Cruises. Bank Newton. Skipum, 
North Yorkshire BD233NT. Tel: 
0756-748077. 


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XII WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1 994 


FASHION / HOW TO SPEND IT 


A close-up shot of the catwalk couture 



i 


.11 





“ You know, you can go all the way to the top , 
Simon, now .you’ve started wearing 
Thomas Pink shirts . “ 

Thomas Pink Shins. Luxury and Elegance, J&L50 - £4250 
85 Jermyn Street, SWI. and Branches 
For Mail Older Catalogue, Pleas® Telephone 071-498 2202 


Avril Groom examines the detail 
of the top designers' creations 




W 


orks of art 
have rarely 
attracted as 
much hype 
as the clothes 
in some of this week's haute 
couture shows in Paris. 

The celebrities with their 
entourages (Prince and Sylves- 
ter Stallone at Versace, Joan 
Collins at Chanel and Valen- 
tino, Shakira Caine every- 
where), the gangs of heavies, 
the strange cult of supermo- 
dels who become global person- 
alities purely on the strength 
of their visual image - all this 
creates an ambience more 
appropriate to the world of 
showbusmess than to fashion. 

It goes with the well-worn 
jibes about the unnecessary 
profligacy of couture - how it 
is expensive beyond the 
dreams of avarice, how it is 
worn by a mere handful of 
women and how it only exists 
for publicity value. 

This view does the clothes 
themselves no favours and nei- 
ther does seeing them on a 
remote catwalk. Only by exam- 
ining them, getting as close to 
them as the women who buy 
them, and by imbibing the 
atmosphere of a designer's stu- 
dio In the hectic weeks before 



Veraaee’s high-glamour Mack sik 
evening dress with fish -scale 
bocflce. 

■ Detail: “scales" made of metal 
rings threaded on to hand-turned 
Mack rftbon 

a show does the logic behind 
this apparently outrageous 
industry start to make sense. 

I would have to quarrel with 
Coco Chanel’s assertion that 
haute couture is “a technique, 
a job. a commercial undertak- 
ing”. 

The clothes themselves may 
be merely examples of high 
craft but the effort of creation 
and co-ordination which a 
designer makes must give him 
a claim to artistry equal to that 
of a conductor or composer. 

Dior or Givenchy have the 
purest outline of a suit or 
shoulderline, Balmain and 
Ungaro manage the most deli- 
cate conjunction of lace and 
chiffon, while Versace, Lacroix 
and Chanel have the cut of the 
moment, one that mafrpq the 
most of female curves. 

The couturier's art lies in 
flattering and glamorising the 
female body - even those not 
shaped like supermodels - 
with clothes that are unique to 
that woman. Along the way 
they keep alive artisan tech- 
niques that might otherwise 
die out. 

The Comitt Colbert, which 
promotes the luxury goods 
industry, is so worried about 
tbe possible demise of these 
skills that it has take n to run- 
ning courses introducing teen- 
agers to manual crafts. 

Even Chanel, despite its rep- 
utation under Karl Lagerfeld’s 
designership, has problems 
attracting young apprentices. 

“It's a matter of attitude,” 
says Catherine Rivi&re, direc- 
tor of haute couture. “Karl 
expects everyone to feel the 
same commitment and love for 



Qianei's hourglass-curved red 
wool er6pe coatdrsss- 
■ Data* shaped pocket and 
raised seams with perfect parallel 



couture that he does. If they 
are happy to work for 200 
hours on one blouse, if they 
can go to a fitting and be prcmd 
of how their work looks, not 
envious of the rich woman who 
is wearing it, then they are 
right for us." 

Cutting and sewing couture 
is, according to a future chef 
d’atelier at one of 7ves St 
Laurent’s two tailoring work- 
shops, “a continual learning 
process. You can never say 
your training is over. Similarly 
a garment is never finished. 
You can always improve the 
detail. M 

St Laurent’s ■ workrooms 
thrive on the quality of their 
handwork. Details such as a 
hand-sewn, contrasting sffk lilt- 
ing and the way a ruffle is set 
between that lining and the 
outer fabric, or a simple- 
looking trim that is in fiact a 
complex confection of appli- 
qu£d velvet and decorative 
stitching - these are the pri- 
vate fruits of the contract 
between client and couture 
house. 

And such details explain 
why St Laurent still has the 
biggest regular clientele, said 
to number around 400, in spite 
of rumours that the designer 
hims elf is now less creatively 
involved. 

Here, shapes are traditional, 
though this season’s experi- 
ments with both very short 
skirts and the new knee-length 
bell shape, i^flTnpri with small 
fitted jackets curvUy seamed to 
the figure, and richly-brocaded 
Chinese styles for evening, are 
an unqualified success, a col- 
lection that recalls his glory 
days. 

The St Laurent client still 
prefers contemporary quality 
to trend statements but this 
new modernity may prove pro- 
phetic, as may Chanel's 
recruitment difficulties 
because, by all accounts, cou- 
ture is undergoing a small 
boom. 

Dior reports sales up by 14 
per cent last year while 
Lacroix and Versace both 
claim a new clientele of young 
Europeans who want simpler 
but glamorous “occasion” 
clothes which will work in 
their wardrobes for years and 
who appreciate the handwork 
involved. 

Christian Lacroix is the 
designer par excellence for dec- 
orative flourishes and histori- 
cal references yet his simpler 
draped chiffon Directoire 
dresses have been his greatest 
success. 

He is also very aware of cou- 
ture’s role as an ideas power- 
house, particularly in the field 
of fabrics and technique. His 
new collection fuses specially- 
invented ways of working fab- 
ric with revived design ideas 
such as tbe puffed Edwardian 
shoulder, the hourglass corset 
and a knee-length A-line skirt 
with fluid movement 
As tbe collection's orchestra- 
tor he persuades craftsmen to 
invent techniques that give the 
effects he wants. 

“He has a very clear idea in 
mind which he communicates 
to experts who then try and 
deliver it," says his assistant 
Laure du Pavilion. 

“The whole show collection 
is produced in two months and 
the atmosphere in the studio, 
as various elements come 
together, is fantastic." 

An example this season is 
the use of large, coloured pail- 
lettes which Lacroix wanted to 
look fluid rather than 19605- 
stiff. This meant sewing them 
into an experimental underly- 
ing network of stretch silk 

handknit. 

Opposing Chanel, he views 
such craftsmanship as “not 
unlike an art” and so complex 
and painstaking are his 
designs that his atelier of 40 
workers can make for clients 
no more than 120 pieces (and 
one outfit may contain 3 
pieces) per season. 

This is patently not an eco- 
nomic undertaking but is 
regarded as essential for the 
house’s creative develop- 
ment. 

Versace is another noted fab- 
ric innovator. Like other cou- 
turiers, his traditional decora- 


Dior's elaborate decoration is as spectacular as its bnmacMate tafloring. 

■ Detaft: a black velvet Jacket has a complex trim at satin, embroidery and punched crocodfa skin 


tion is done by the great Paris 
embroidery houses such as 
Lesage, but he also works 
closely with German and 
French companies specialising 
in metallic fabrics. 

They have developed a fluid 
“chainmail" at his behest, 
while other handworked fin- 
ishes - such as a Qshscale- 
effect bodice, which on close 
inspection turns out to be 
made of fine silver rings 
threaded on to hand-turned 
ribbon - are made in his Mil an 
workshops. 

Even in couture Versace has 
an eye to commerce. He is a 
supremely flattering and gla- 
morising cutter and the impact 
made by actress Elizabeth Hur- 
ley attending a London film 
premiere in one of his dresses 
apparently held together only 
by safety pins has sparked 
many imitators. 

Earl Lagerfeld at Chanel has 
sometimes completely sub- 
sumed couture tradition and 
technique in headline-grabbing 
razmatazz. but not this time. 
Complex technique is para- 
mount though not always eas- 
ily visible. 

On the catwalk, precision-cut 
jackets, cinched and fluted like 
an hourglass, look effortless. 
But in fact they contain up to 
30 pieces and are shaped by a 
profusion of curved, raised 
seams, each stitched to within 
a millimetre's accuracy. 

In ready-to-wear, the famous 
braid trim is sewn on; in cou- 
ture. this season, it is an edg- 
ing of satin and an appliqu£ of 
velvet, or a mix of hand-plaited 
fabrics, or tweed made into a 
fins bias rouleau and applied 
by hand 

The basic silhouette is a 
refined version of the tight- 


waisted, full-hipped shape 
reviled when Vivienne West- 
wood showed it in March. In 
Chanel’s mix of subfusc shades 
with the occasional bright or 
pastel tweed it looks at once 
nostalgic and sophisticated. Its 
craft is beyond reproach yet 
any general fashion influence 
it has will be on overall 
shape. 

In spite of the supremacy of 
couture technique, it is the 
bright, immediate media image 
to which even the most cynical 
of us is susceptible. 

Looking for a pair of shoes to 
replace ones ruined in the trop- 
ical downpours which have 
plagued Paris this week, I 
found myself tempted by a pair 
with a well-known designer 
label. 

Were they really more attrac- 
tive and wittier than any oth- 
ers, or did I just imagine that 
that safety-pin trim would 
make some of the magic of 
Elizabeth Hurley's dress rub 
off on me? 

Detail pictures Ben Coster 

Catwalk pictures Niall 

Mclnemey and Ben Coster 



Yves St Laurent’s ladylike 
forest-green wool erOpe suit with 
burgundy velvet trim on pockets. 
■ DateEt pocket trim made of 
hand-cut velvet and decorative 
stitching, silk -lined and appOquAd 



O ne in six of us is a 
shopaholic, Mintel 
reports, and 
although this seems 
a depressing statistic, I prefer 
to look at it the other way and 
think that five out of six of ns 
are not That species - so 
highly developed in America - 
which needs to shop in order 
to feel it exists, is still a rarity 
in the UK. 

But there is disturbing 
evidence that it is increasingly 
difficult to find a 
shopping-free 20ne, no matter 
where you go. Wimbledon, the 
Royal Opera House, Hampton 
Court Palace, Buckingham 
Palace ... you name it they 
will be trying to sell yon more 
than spectator sports or a 
cultural experience. They will 
be there with their souvenirs. 


Shopping marches on 

Lucia Van der Post reports on two new victims of shopaholics 


special offers, postcards and 
scarves. 

This summer two more 
bastions have fallen prey to 
the notion that no experience 
Is complete unless there is the 
Opportunity to shop: 
Goodwood, that most demure 
of race-courses; and 
Glyndeboume, that most 
magical of opera bouses. 

In Sussex, Glorious 
Goodwood is about to begin. It 
runs from Tuesday to 
Saturday and, aficionados will 
know, it has always had a 


completely different 
atmosphere from Ascot There 
are fewer of the international 
or Euro-chic set around, 
dress-codes are informal, even 
for the Richmond enclosure, 
and picnics are part of the 
treat This is not the place for 
blindingly smart jackets and 
short skills. Go instead for 
soft jackets and flowing skirts 
- think country prettiness 
instead of metropolitan chic. 

As for the chaps - where 
Ascot is morning dress and top 
hats. Goodwood is full of 


racegoers in blazers and 
chinos or linen suits and 
panama hats. 

Friday sees a grand ball in 
conjunction with Tiffany, the 
jeweller, and, to coincide with 
Goodwood Week, the company 
has Ian ached a first collection 
of Goodwood-related products. 

The collection is small and 
based on the colour yellow - a 
particularly brilliant shade 
found in a Stubbs painting. 
You can choose from socks, 
head-scarves, silk ties, braces, 
umbrellas and panama hats. 


Yon could spend 50p on a 
pencil, £30 on a Panama hat or 
£85 on a silk scarf. 

During Goodwood Week 
there will be a shop near tbe 
paddock. Afterwards, 
everything will be available by 
mail order (brochures and 
details from Goodwood House, 
Chichester, West Sussex, P018 
QPX. TeL* 0243-774107). 

Those who have already 
been to Glyndeboume may 
have noticed that the new 
shop sells a host of items that 
could come to the rescue of 


forgetful punters - you could 
buy chocolates or champagne 
(£25), waterproof-backed 

picnic rugs (£55) and 
ultra-lightweight folding seats 
(£36.75), Insulated bottle bags 
and champagne stoppers, 
canvas bags and umbrellas, all 
In Glyndeboorae green. 

Also on sale are photograph 
nfonnis, address books, 
noteblocks and. pencils. For 
opera buffs there are 
recordings, videos, opera 
journals and the like. Prices 
range from 95p for the 
notebooks to £11.35 for a 
visitors’ book. 

Tbe slug) is open from 3pm 
until the end of each 
performance. A catalogue is 
being produced for the 
autumn. Details on 
0273-812321. 



V 




v --‘ . / 



■ 







FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


WEEKEND FT 



FOOD AND DRINK 


-**V ■r.-jg' 




SF;* r *Sr- \ ~ , v* ■; 

JiL 

. ■ » ‘ ’ ♦ „ ■ «vPW 1 > 




Dtoots at Harvey Nichols you can opt to- an attractive nine pricing poHcy there on Monday nights 


A customer-friendly bottle 

Nicholas Lander reports on a new trend in restaurant wine pricing that saves diners * money 


he adage In the restaurant 
business used to be that 
“you never see a good res- 
taurant advertise”. This is 
no longer true. A number of leading 
British chefs and restaurateurs 
have taken part in the recent 
multi-million, pound American 
Express campaig n. 

'And in New York, Alan Stillman 
ha« manag ed to keep his restau- 
rants - The Post House, Smith & 
Woflensky, Cite and The Manhat tan 
Ocean Club - humming by the use 
of full-page advertisements in the 
New York Times. 

Although such advertising is 
invariably too expensive for the sin- 
gle restaurant, there is no doubt 
that the industry is aware that it 
must promote Itself continually to 
compete for Its customers’ dispos- 
able incomes. 

Chefs know that writing recipes 
in a newspaper, giving interviews 
on bow they prepare Sunday lunch, 
even appearing as a judge on BBC’s 
Maslerchef, can keep their bookings’ 
line busy, in today’s competitive 
world no opportunity can be over- 
looked. 

And now it appears restaurants 


are beginning to put their wine lists 
to work in a way which can bring 
financial savings to their custom- 
ers. 

The process started in New York 
at the beginning of the year but has 
now surfaced in the smart Fifth 
Floor restaurant of Harvey Nichols, 
the department store, in Knights- 
bridge, west London. There, on 
Monday nights, you can buy your 
wine in their wine shop and take it 
to your table at no extra cost 

The restaurant’s mark-up is com- 
pletely foregone in a brave - and so 
Car se emin gly successful - attempt 
to boost business on what is invari- 
ably the quietest night of the week. 

Dining there recently, we began 
with a half of Pernard-Vergelesses 
1988 from Rollin Fere (£9.95 in the 
shop, £13.50 on the restaurant wine 
list) and then moved on to a bottle 
of 1985 Baibaresco from Mascarello 
(£1830 from the shop. £3830 on the 
restaurant wine list) which the som- 
melier decanted most professionally. 

Both choices showed how con- 
sumer friendly this pricing policy 
can be. The first wine was slightly 
disappointing but not excessively 
so, given the price we were paying. 


The second was so glorious that we 
felt we were enjoying a most won- 
derful bargain. 

This scheme has been instigated 
by the restaurant's manager. 
Edward Hyde, originally to promote 
the wine shop. 

“Obviously when we began the 
scheme,” he says, “we were con- 
cerned about its impact on profit- 
ability. Margins have been affected 
but there have been two major com- 
pensatory factors. 

“The first is that we have signifi- 
cantly boosted business on Monday 
evenings and, secondly, those who 
are coming on a Monday night are 
entering into the spirit of things. No 
one is coming in here to drink a 
bottle of the house red at £430. 

“Instead, our customers are tak- 
ing the opportunity to trade up and 
enjoy wines that they conld not 
afford previously. We have also 
learnt an important Lesson: that our 
customers come in here with a very 
fixed idea of what they are going to 
spend on wine. 

“If it is £20 they are still spending 
that much on Monday nights but 
they are drinking far more interest- 
ing wines." 


It is a distinct advantage having 
your own wine shop next to the 
restaurant so that at least you can 
make a retailer’s margin. But, tak- 
ing it a step further, certain Ameri- 
can restaurateurs have shown just 
how aggressive wine pricing can 
stimulate business. 

Alan Stillman started the ball 
rolling at his Cite restaurant in Jan- 
uary. Business at l unch and pre- 
theatre was good but dinner trade 
needed a boost so he adopted a pol- 
icy of offering unlimited glasses of 
wines, such as Mo£t & Chan don 
non-vintage champag ne, top Calif- 
ornia chardonnay and classed- 
growth clarets, to anyone ordering 
a $3930 (£25.90) prix-fixe menu or 
three-course dinner. 

It cost Stillman roughly between 
$10 and $13 per customer, many of 
whom in turn spent an extra $8 an 
dessert and coffee that they would 
not normally have ordered. But it 
immediately filled the restaurant 
through the quietest months of the 
year and got everyone talking. 

It also stimulated fellow restaura- 
teur Philip Scotti at the Century 
Cafe in Times Square, into creating 
a pricing policy on his wines - for 


bookings between 8pm and 11pm - 
that means charges are a mere $1 
per bottle over cost 

Russell Rusdgno, at his Clinton 
Street restaurant in Los Angeles, 
and Gayle Dierkhising. at the All 
Season’s Cafe, Calistoga, have 
adopted similar pricing policies 
with the same beneficial result. 
Rusdgno charges a fixed $8 per bot- 
tle over wholesale, and Dierkhising 
$730 per bottle over retaiL Both 
report increased volume and better 
takings. 

Such attractive wine pricing will. 
I hope, become more common in the 
UK, particularly as we have a 
national network of enterprising 
off-licences to provide the wines. In 
the interim, anyone looking for 
vinous excitement on a Monday 
night and with anything to spare 
from around £10 for a 1992 Shaw & 
Smith Reserve Chardonnay from 
Australia, to £175 for a 1982 
Domaine de la Romanee-Conti La 
Tache, should head off to Harvey 
Nichols on a Monday night 
■ The Fifth Floor, Harvey Nichols, 
Knightsbridge, London SWl. Tel: 
071-235 525ft Set three-course menu 
E2L50, excluding service and trine. 


Eating Out 

United in 
mediocrity 

Giles MacDonogh visits Ulster 


N orthern Ireland is worth 
it It has some 

spectacularly beautiful 
stretches of countryside 
and in some parts, at least, it has 
all the charm and 
warm-heartedness more usually 
associated with the Republic. Even 
after a vicious terrorist campaign 
aimed at the historic centres of 
Ulster's county towns, much of it is 
unspoiled. "The Troubles” are still 
very localised. 

With a name like mine, I am 
naturally disposed to like Ireland; 
and Ulster is very much Ireland. 

On the other hand I am not blind to 
the drawbacks. One of these is 
food. When it comes to food, the 
dream of unity has already been 
accomplished: yon may eat badly 
from Ballydehob in County Cork, to 
Ballycastle in County Antrim. 
Things are. however, getting better 
on both sides of the frontier. 

Ulster has two famous 
restaurants. In the holiday town of 
Portrush there is Ramore and in 
Belfast there is Roscoff. I have not 
eaten at Ramore for more than five 
years, so I shall forbear from 
comment Roscoff, Ulster’s only 
Mlehetin-starred restaurant 1 have 
visited more recently. 

Its location as something of 
a surprise: it is right in the middle 
of Belfast where It is popular with 
British journalists on Ulster 
postings. It Is keenly priced and 
busy; with its vaguely nautical 
decoration it looks a bit like a 
sea-side brasserie. The food is 
described as Franco£a]tfomian, 
but it is rather more of the latter 
Hian the former. 

Rather Californian was the 
“seared beef with celery, Parmesan 
and truffle oil” which I enjoyed; 
less so were the “sauteed 
sweetbreads, with fresh pasta, 
bacon and roast garlic”, which I 
did not It was a fussy dish and the 
sweetbreads were overcooked and 
over-salted. 

A chestnut and amaretti souffle 
proved a little dull, but Paul 
BanMn, the chef, was away that 
day, and I am prepared to believe 
that tiie cooking would have been 
more precise bad he been around. 

hi the province they will tell yon 
that Rankin has done winofi to 
encourage small producers of 
quality raw materials. One supplier 
he has patronised is McCartney’s in 
Moira, County Down. George and 
Gordon McCartney are 
prize-winning sausage makers with 
a list of 31 specialities running 
from lamb with mint to pork with 

hnnnwa. 

I am happy to say I have not had 
the banana sausage, but I have 
eaten a delicious pork and leek 
sausage as well as an excellent beef 
and Gninness. The McCartneys 
refuse to countenance sales from 
anywhere other than their shop; 
which is fine if you live in Belfast, 
which is only half an hour away by 
car. Here in London it seems a pity. 

The McCartneys use pork from a 
couple of local farms and superb 
Ulster lamb. At the Portaferry 


Hotel in Portaferry I had 
wonderfully flavoured lamb from 
the Mourne Mountains, while od 
the Antrim coast the lambs graze 
on salt meadows as fine as any in 
Normandy. Sadly no initiative is 
made to market this meat and in 
most Ulster restaurants there is an 
unfortunate tendency to smother 
the meat in old-fashioned fruit 
sauces. 

A similar lack of initiative has 
blighted Ulster cheese. In the 
Londonderry Anns, in CarnJougb, I 
was told that the local farmers’ 
wives had abandoned cheese and 
batter-making in the interests of 
“liberation". I don’t know if this is 
true, but If it is, liberation would 
seem to be a high price to pay. 

Ulster used to have three 
farmhouse cheeses, but these are, 
as I was told, “all more or less 
defunct”. There is a serviceable 
Cheddar from Coleraine and a 
horrid Llmeswok! lookalike called 
Bally Blue. Bally Blue indeed. 

Beer from Ulster’s one 
independent brewer, Hllden, proved 
impossible to find, even in the 
Crown Liquor Saloon. The Crown is 
one of the best preserved Victorian 
pubs in Britain: a remarkable 
achievement for a building opposite 
the Europa Hotel in Belfast. 

Belfast gin was almost as hard to 
find. Again this is a pity. It is a 
nice lemony drop, and rather better 

than a lot of the better-known 
brands. 

On the other hand, there was no 
shortage of Bushmills’ whiskey, 
County Antrim's most famous 
product 

Ulstermen are proud of their 
breakfast “fry”, but this too is 
something to approach with 
caution. Neither the sample 
produced at the Culloden Hotel In 
Holywood, nor the Galgorm Manor, 
near Ballymena, proved authentic: 
the sausages were in synthetic 
casings (unlike McCartneys’), there 
was no black pudding and the 
sausages had been grilled! The 
grilling was justified on grounds of 
health - something which seems 
absurd. There is no such thing as a 
healthy fry. 

On my return to London 1 
dropped in on Richard Corrigan’s 
new restaurant in Fulham Road. 
Here is an Irishman cooking superb 
meals by sagely adapting the 
earthy flavours of his mother 
country: wonderful ravioli of 
suckling pig; delicious faggots 
culled from every imaginable part 
of the pig’s head; crubbeens (pigs’ 
trotters) and sensational black 
pudding. Where are the Corrigans 
of Ulster? Or is it true that no man 
is a prophet in his own land? 

■ Information: 

Roscoff (tel 0232-331532): 

McCartney's (084&611422); 
Londonderry Arms (0574-885255X 
Portafeny Hotel (02477-2S231); 

Crown Liquor Saloon (0232-249476); 
Culloden Hotel (02327-5223),- 
Calgorm Manor (0266-880080); 
and Corrigan ‘s restaurant. FuOurn 
Road, London (071-351 7823). 


B y this stage of sum- 
mer, the first flush of 
excitement is over. 
No longer do many of 
us want to serve strawberries, 
raspberries and redcurrants 
simply with sugar and cream. 
This is the season for summer 
puddings, some variations on 
which are given below. 

Most of these recipes include 
a dash or more of citrus 
because nothing works faster 
than limes or lemons to bring 
out the best in scarlet fruits. 
Citrus will restore vibrant life 
to tired, woolly, over-ripe ber- 
ries and currants and it is 
equally capable of rounding 
out the thin flavour of slightly 
under-ripe fruit. 

Limes are the lemons of the 
tropics. They exude more than 
a hint of the exotic with their 
scented acidity, which seems 
almost coconut-creamy. I use 
them more and more. 

My favourite lemons are 
sfbsati, now sold by Safeway 
as A malfi lemons at a hefty 
premium price. Very large, 
grown organically and excep- 
tionally aromatic, their juice is 
refreshingly sharp, lacking bit- 


Cookery /Philippa Davenport 

Pep for puddings 


terness. In Amalfi, the fruit is 
often peeled, sliced, dressed 
and served as a salad (just as 
oranges are sometimes served 
en salade with black olives in 
Morocco). 

It also makes fine le m o n ade, 
lemon curd, lemon souffte, and 
other sweet dishes - all with 
virtually no need for added 
sugar. 

Amalfi lemons are remark- 
ably handsome, too, and grow- 
ers prefer to export them with 
leaves still gracing their stalks. 
But Safeway is selling them 
stripped of the leaves and 
wrapped in cling film, which 
makes them seem rather 
charmless to buyers unaware 
of their special qualities. 

SUMMER SOUFFLE 
SURPRISE 

Based on a Constance Spry rec- 
ipe. this takes very few min- 


CLARETS AND 
VINTAGE PORTS 


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For stockists, 
tel: OH -409 7276 



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FINE & RARE 
WINE DESK 

We tme iwwilly purctuewd the 
Fine Wine Library of another of 
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Please call or fax fora catalogue: 

Tel: 071 407 3466 
F.iv 1171 403 0873 


utes to prepare and will serve 
four in style. Success lies in 
good organisation. 

The oven must be pre-heated 
thoroughly to 425°F/220°C (gas 
mark 7) while the freezer 
should contain plenty of 
crushed ice and lpt of the 
creamiest vanilla ice cream. 
Individual souffte dishes and 
‘Alb or so of ripe raspberries 
should be chilled in the refrig- 
erator; the souffle ingredients 
should be measured out on the 
work-top and left ready. 

Beat two egg yolks with the 
finely-grated zest of a lemon 
and a generous tablespoon of 
lemon juice. Sit the soufflfe 
dishes firmly on crushed ice in 
a roasting pan. Spoon the ice 
cream into them and scatter 
the raspberries on top. 

Whisk the whits of the two 
eggs to snowy peaks, incorpo- 
rating one dessertspoon of 
sugar gradually. Fold the yolk 
and lemon mixture into the 
egg whites and spoon the amal- 
gam over the fruit. 

Slide the pan into the oven 
and bake for six minutes until 
the souffte mixture is softly set 
and golden, the fruit is no lon- 
ger chilly and the ice cream is 
just beginning to soften. 

LIME TART WITH 
STRAWBERRIES 
Here is a delicious and pretty 
dessert for six (or eight if appe- 
tites are modest). Wild straw- 
berries are sold by smart 
greengrocers and can some- 
times be found in supermar- 
kets. Alternatively use ‘Alh-'Alb 
ordinary strawberries, sliced. 
How much juice a lime will 
yield varies greatly: play safe 
and buy four. 

Make some pate sucre with 
goz plain, white household 
finmv 3oz butter. 3 egg yolks 


and 2‘/*oz sugar. Wrap it and 
chill for at least 30 minutes 
before using It to line a 20cm 
(8in) cake tin with spring-clip 
sides. Chill again for an hour 
or longer. 

Meanwhile, prepare and chill 
the filling. First, beat 5 eggs. 
Reserve a spoonful or two to 
seal and glaze the pastry. Add 
6o2 sugar to the rest and beat 
until soft and foamy. Then 
beat in the finely-grated zest of 
3 tones and just over 4 n oz of 
lime juice. Stir Vipt double 
cream until smooth and blend 
it into the lime mixture. 

Line the pastry case with 
grease-proof paper and beans, 
and blind-bake it on a hot bak- 
ing sheet for 15 minutes at 
400°F/200°C (gas mark 8). 
Remove the beans and paper, 
brush the pastry with the 
reserved beaten egg. and bake 
far 5-8 minutes more until the 
pastry is set firmly. 

Ladle the filling into the 
pastry case. Reduce oven heat 
to 300°Fjl5ff > C (gas mark 3) and 
bake for 70 minutes. 

Let the tart cool completely 
in the tin: this will take about 
four hours. Then, cut the 
pastry level with the filling 
and un-mould the tart Serve it 
on the day of baking, covering 
the lime custard with straw- 
berries, whole or sliced, just 
before serving. 

WILTSHIRE JUNKET WITH 
RASPBERRY PUREE 
Junket is one of those old-fash- 
ioned foods you tend to forget 
about then re-discover with 
glee, for rich versions are 
every bit as good as coeur a la 
crime - and less fiddle to 
make. When cream is used, the 
texture of junket is delicate 
and rich, slipping down the 
throat siliril y. If the mixture is 


mpanly milky, the results may 
be perilously thin and bursting 
with whey. 

Look out for Burgess rennet 
essence in good grocers (my 
local Waitrose stocks it). 
Today’s brew seems to produce 
a firmer set than it used to 
and, sensibly, bottles now are 
marked with the expiry date of 
the rennet’s patency. 

For four people, mix 'Apt sin- 
gle cream with ftpt creamy 
(gold top) milk. Warm gently 
to blood temperature (98°^ 
with 2 teaspoons vanilla or 
caster sugar. Away from the 
heat, quickly add 1 teaspoon 
rennet. Stir to mix well and 
divide between four small 
glasses or bowls. Leave undis- 
turbed at room temperature for 
about three hours. 

Serve topped with raspber- 
ries for garnish, and a jug of 
raspberry purge CAIb of rasp- 
berries sieved and sweetened 
with loz icing sugar, or to 
taste). Blackberries, loganber- 
ries or mulberries can replace 
the raspberries. 

LEMON CURD 
ICE CREAM 

I am quoting this from Leith's 
Cookery Bible (Ebury, £20). It is 
good served with crumbled 
amaretti biscuits and a handful 
of fresh berries (strawberries, 
raspberries or blackberries) 
with a matching berry purge to 
sauce it I have also used it 
half and Half with rich vanilla 
ice cream wben making sum- 
mer soufflg surprise. 

To serve six people, put into 
a small saucepan 4 egg yolks; 
the finely-grated zest and juice 
of 2 lemons; 4'Aoz caster sugar, 
and 4oz unsalted butter at 
room temperature and cut into 
dice. Place over gentle heat 
and stir until the butter has 
melted and the curd coats the 
back of the spoon. 

Allow the curd to cool, then 
stir lpt natural yoghurt into it. 
Cover closely and freeze. 

Put the ice cream in the 
refrigerator about an hour 
before serving. 



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Chitaas lascuriws 1988 
ItetCnCbni 

Margaux AOC 
Medal-winning Margaux with 
silky, blackberry fruit and 
overtones of spicy cedar. 
Ready to drink now, although 
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La Font Saint Martin 1991 

Bordeaux AOC 
A classic Mcriot/Cabemet bicod 
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CUUtWMrMH 


Chateau Roe da Prerfat 1989 

Bordeaux Super ieur AOC 
From an excellent vintage, 
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Bordeaux Sup&ieur AOC 
Smooth, oak-matured claret 
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BORDEAUX DMCT. PADOIXX ROAD. REaDWO WKH 0JV TEL I07MI <WSSS 


■ ORDER NOW WHILE STOCKS IAST Please twin ta Bordeaux Direct, FREEPOST, Sudan, B64 7BB (no stomp required) 

. or telephone [07341 (69555 or fax (07J4.1 461953. [ntroituxory offer - new Bordeaux Direct customer* only. There a no 

■ romimuncm lo any further purchase. UK addresses only, excluding C hannel bland*. Allow 5-10 working days for delivery. 


Mr/Mrs/Wiss/Msrtltrr 

Addrea 

Telephone: CbylHTK_. 


Inhxals 


Surname 


ftwnlr 

Evmng 


| Whoc W Iota- ifeufeg with naghbouri ... . _ .. 

! I enclose a cheque for £72.74 (Le. £67.99 plus £4.75 p&pl mode payable to ‘Bordeaux Direct' or 
I please charge £72.74 id my VISA/ ACCESS/CONNECTf AMEX/DINERS CLUB cord number 


Signature 


Dale 


I am over 18. 


Expiry Date 

ReT.No.H6lO 







XIV WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


COUNTRY PROPERTY 


STRUTT &_«U 

PARKER*^ 



River Tweed, Scotland 

CaMre«»i2ite3e», Berwick upon Tweed IS antes. Edaibuqh 48 niBes. 

} mOe single bank of prodnctfre sdmoa ffeidiq? an oar of Seafood's 
bM kam s a lm o n rtw. 4 year »mp - 122 nfoicm. 3 namad pack. 
Se> trad tubing. Faring hut. Fa-sale as a whole or as 3 fadMdnal dam. 
Ertedtorgb Office TcL(031)22S 2500. Fla: CD 1-226 2508. S43AA4667. 



Lodi Lomond About 120 acres 

Babuba I mite. Drymai 4 mils. Glasgow 24 mika. Edmbuxgh 6$ miles. 

A inast annetfva Uasd en one of ScoifaBiri nost beaatHd bxte wttb 
fear booses. 

Incbtad Bowse Sums room, kachca. 4 bedrooms. bedroom. Pier Cotta g e . 1 
Sitting rormi. kaochcii 2 hatin reiM snd bahwom. DhaEhry Cnctagei Smog 
room, kitchen /breakfast room. 2 bedrooms. Harbour Cottage*. Snots 
roomftiKbea, bedroom. General purpose bam. 2 perron jeoies and sHpways. 

BcaaifaHylreds caiJ c d gardoB. Mama electricity red tc fctteo o e . 

For sale aa a whole, <*■ rrfftrs Invited for one eighth shares hi asyndteate. 

Edtabregfc Oflia: TeL (03 1)226 2900. Fu 01-226 2508 RrCJAMtSQ. 


13 HILL STREET BERKELEY SQUARE LONDON W1X 8DL 
Tel; (071) 629 7282. Fax: (071) 409 2359. 


BEDFORDSHIRE 

MELCHBOURNE 


Suiniihnd 3 miles 


Kimbolcon 5 miles - Rush den 6 miles 


363 acres 


A SINGLE BLOCK OF 
ARABLE LAND IN A RING FENCE 


All registered as being eligible for arable area payments 
Good access from the main road by hard internal tracks 


Offers for die whole or any part 



BipWELLs B 


0234 352201 0223 841841 


1*115 Si P«!A5SCU«E BECK*® WOO ISW TBUMPWGTON HMD • CMteraOOE CK 210 


THE CATHEDRAL CLOSE • SALISBURY 

One of the few freeholds within the precincts of The Dose 



Listed Grade n* 


Originally the stables 
to Mompesson 
House. 3 bedrooms, 
2 reception rooms. 
Price Guide £425,000 


f ft tell. L i 


Tel: 0722 321711 
Fax: 0722 411426 


LUXURY 


Ud#q 4|nvi« 4 | 


9J IN CORNWALL 

2 5 3 BEDROOM HOMES IN A SUPERB BEACH LOCATION 

PRICES FROM 


W* 72,495 

7n a e snP cr ' n 

9 t-S THIS VEXCLUSIVF 


9 ** THIS « EXCLUSIVE 
DEVELOPMENT OFFERS 

• Leisure complex and swimming pod 

• Tuemv-nine acres of private parkland SPECIAL 

* Two all weather tennis courts ^ HOTEL BREAK j 

• Children s play ana mBoa}Paji /^>^ Take advantage oiour 
•SatharutPubATenvceBar /&§&/ special offer and stay at a 

'S5£2 

• 2 years FREE mooring (at Falmotnii*\ negotiated rates. 

Yacht Marina) for a limited period only ' 

• Letting opportunities available fCPb fiOOC OCfiOfifl 

•Sauna and spa pool ftSft U04U ZvHJUUU 


• Leiring opportunities available fCRh />OOC OCfiOfifi 
•Sauna and spa pool ftSft UOcU ZvHJUUU 

KmowaPlLKINGTONaMmaai 

© PlLKlNGTON HOMES 0744 692S40 

THE COURT, ALEXANDRA PARK. RRESC0T ROAD. ST HELENS, WA10 3TT. 


Knight Frank 
ZZ & Rutley 

INTERNATIONAL 


Humberts 


ALLARD 



WIMBLEDON, SW19 
An historic Grade II* listed property of 
unique character dating from shout 1500 with 
attractive grounds and gardens situated in a 
prominent but extremely secluded position. 

Panelled reception hall. 4 reception rooms, study /library; 
conservatory; billiard room, family and party room, master bedroom 
suite with bathroom, dressing room and atudjt 4 further bedrooms, 
3 bathrooms l2 en suite!. 

Staff wwimnw^fyin Swimming pool, tennis court. 
Garag i ng for 4/5 care. Lodge cottage. Extensive gardens- 

About 27* acres 

FREEHOLD rvnTinnm, 


Iflle Of Wight Newbridge 

Vmauih 4 mile* Acwpon T aula, Cowes 9 talks 



A Grade n listed house with superb views 
and set in gardens of exceptional beauty 

The Code n listed house having 6 bedrooms, 3 bathrooms. 4 reception 
rooms, kitchen /breakfast room, Scullery and utility room 
• Adjourns* r " ,, -*r l with sitting room, kiidien, 2 bedroom, shower room 
mid YiC • ODibmkUiqts including 3 garages. tractor shed, storage and 
stables- Swi mmin g pool • Spectacular gardens and grounds Including 

2 pfTP^T .Hid 

Details: Humberts London office 071^290909 




OXFORDSHIRE HENLEY-ON-THAMES 


CHARMING 
COUNTRY HOUSE 
with Badgemore 
Golf Course on three sides 


4 Reception Rooms, 
Khcheu/Break&a Room. 4 
Be dro o m s, 2 Bo [b ro oms : ANNEX 
of Bed/Sining Room. Kitchen and 
Bathroom. Magnificent Old Tithe 
Bam. Garden about 13 acres. 


071-629 0909 


U 0491 ? 41 WSS i 

20 Hart Street. Hcnkyoa-Hunsos. Ox&adsfahe RG9 2AU 


LONDON PROPERTY 


INTERNTIONAL PROPERTY 


Sloane Street 07I-S-4 SI 71 

\ .Vi Sloanv Street. London SW1X 0DB 


AMES & LISTER LEA 


TAYLER& 


FLETCHER 









1ICb^4^ 

!"41 WARWICK KOAIr. KNU’-VU. 



soi mn.i. -tri ; i'iiom -; 9i»7 


C.G.T. OPPORTUNITY Loon Cornwall. 3 
tunny bead! front ineisenettas £320.000. 
Ftfty (wnWetL UARSHA1IS 0503 264888 


Gloucestershire - Cotswolds 

2mUafrimS**~o+*e-WaU 
A comfortable small Gcorgain 
Mansion. Listed Giade n with Halls. 5 
Rcccpttoo Root. 8 Bedroom. Staff Rat. [Sib 
Gcnlary Stable Block aad 3 Cottage* ( 1 hr 
c omp l ete ■ od s roh ononl id in lovely nutate 
Pui±*ki and Fansiand with >« view*. 

Just over 200 Acres 
TajUr & Fletcher 


LOWNDES SQUARE 
KNIGHTSBRIDGE 
SWI 

A large second floor family apartment (c. 3.500 sqA.) 
with a frontage of over 100 ft. having a west being aspect 
over the square gardens. 

Hall: Double Reception Room: Dining Room: 

Six Bedrooms: Five Bathrooms: Television Area: 
Kitcben/Breakfast Room: Guest WC 
Resident Porterage: Lift: Access to Square Gardens. 
Long Lease £2.500.000 


Isle of Man 
ProSearch 

The property specialists 



Knight Frank | 
S & Rutley 

INTERNATIONAL 1 


7b buy this (or other) 
attractive properties 
Tat/Pax (0834) 882186 
for more information 


MONTE-CAMLO 
3 room apartment 
with a wonderful 
view overlooking 
Monte-Carlo and 
the Beaches, 

5 Million FFr(Ri 2 ) 




I071-8248171 


071-584 6106 

ri d i in t wL»*»swixnA 


Chn.Teb 0*5! 8209! J 


LONDON/BELGRAVIA MEWS 


Humberts 


EAST SUSSEX 


Eaabounx 5V« miles. Lewes 1 1 miles, Poiegate Solicc 2 miles 
iVrcaaria/Loadoo Bridge 80 mms) 

A my fine petted country boose with a renowned walled guden and boro far 
conversion to a dwelling, in the bean of the Sooth Downs. 

Rill, drawing room, study, dining room. fctcbeo/breakCca room, staff sitting toots 
& domestic offices, cellar. 9 bedrooms. 2 bathrooms, shower room. Oil ford CH. 
Ombufldiiigs A stores. Staff Cottage - 4 rooms, kitchen and bathroom. 
Magnificent period barn with planning oome irt far canversicra to a dwelling in 
txmjuDcUoo with Cottage (subject » GulMgg a Section 106 Agreement). 
Renowned waDcd garden. Orouads A paddocks extending m all to aboel 9 Vi acres. 
Freehold for Sole as a wbole or in 3 Ms. 

Joint Sole Agents: 

Hnmberts Lewes Office Tet (0273) 478828 
Freeman Ftnrn— . Heathflrid Office Td: (805) 8650S5 . 


Impressive petted boose, in dunning 
mews off Eaton Sqaaic. spadous 

a r rro i iw u vh Hrw i rfr ^yr jtTli IO the hjgfffiP 

fahtring- Home fjolilics, 

1 pnxp g "p ub " in the cdlv v diaiflg rocn, 
dnwipg ffbVtn LUlIkIL 3 miv, 

2 baths, sfaower/dressing roam, doaboom. 

garage and private parking. 

36 vear tease (option 90 yr cmiBion) 
ASKING IS85iM0 
For details CrD D J Lewis 
USA 1-212-31 6-0027 
FAX: 1-212-865-4894 


CHESTERTON'S 


BERKLEY SQUARE, MAYFAIR W1 
Impressire 64 floor, 2 tadraon fbt 
fcamring 27 reccpUtm room wilh 
dntd views on lo Square. 

Lease to 2034. £525,000. 



A AGED! 


frLjvr-'if-i 

'**■■■- - 


7/9 Bd dcs Mtmlms MC 98000 Monoo 
, Td 33-92 163 959 Fax 33-93 SOI 942 l 




I l- /-\7 1 P Fr| | 


NORTH AUDLEY STREET, WI 
Investment opportunity. Entire tipper 
ports of period btuUing arranged as 
3 flmr Ideal letting investment. 

Leases Vo 2IU3. F.O A. 
Mayfair: 071 629 4513 


INEV/Y0RK CONDOMINIUM! 
LINCOLN CENTER S CENTRAL PARK 


COTE D'AZUR 
Mandelzeu/La Nafoulc 
Large kxmy 1 bed apartme n t 
Sleep 4. Sooth focing temoe skuted In 
bemniM Prooencala style setting on 
pQVltB Aimatfl with jpOOL tBDDS 9L Ctflb 
homo. 5 mins beaches A golfchtes. 

L 135-000 a 

•Del: 0923 855476 


Opportunity to purchase brand new 
condo with fabulous NYC views. 
Tech nolo gically admneed consbudten 
A design. Ott-stta health dub. Root 
plane ft prices avaOdde igxxi request 


Lewes Office Tel: (0273) 478828 


20 MILES 
CHANNEL 
TUNNEL 


DEVON/CORNWALL 
CGT SHELTER 


Ba sdccaon cf Hctaiy bnemnenr Lodges 
■ Ril Mjna g ane nt Sew ic ex. 

■ Exrt Routes wtei Capita Growth. 

■ Eaceflenr Returro. 


EATON FORD, 
CAMBRIDGESHIRE 

(Access AJ I mile/Kbtgs Crass 45 buhsJ 
SdbnBadd period home with homage 
10 die River One. 3 Reoqnkms, 

10 betkotans, 2 baths lone ensuhe), 
attic room, double garage, Ahont I acre. 
OFFERS INVITED. 
SAV1LLS (0223) 322955 


o 

RENTALS 


Jean Klein, Vice President 
Tal: 212-326-0338 Fmc 212-68EMK24 
QHBNTHAL REBBENTIAL 


WOfUD OP PROPERTY MAGAZINE The 
tMK & blgBNL Fcr ymn FREE COPY T«fc 
00T 542 0068 fmc 081 542 2737 


Deauville OrrosrrE Casino 

Spodons stndm. Sleeps three whfa 
garagp A cellar la powtooa btnldiiig 
with balcony -overlooking gardens. 
Outer m block from sea. 
Phcc9M/M0FF 
PrindpA oufy pinmc in first instance 
MmcTrcscrta Parts on (33) 147228391 
or Dcaovflk (33) 31 9842 9 


CLUTTONS 


Beantifally appointed detached 
residence adjoining 
CHAMPIONSHIP GOLF 
LINKS situated only a few 
hundred yards from the sea. 
London 2 hours. Gas central 
heating, 3 Reception, Breakfast 
Room, superb Kitchen, Cloaks, 
Utility, 4 Double Bedrooms, 

3 Bathrooms. DOUBLE 
GARAGE Landscaped gardens 
INCLUDING BUILDING 
PLOT. 


Packages £28,500 to £2 fnflffon 


0626 776088 
VERNON KNIGHT ASSOCIATES 


LITTLE VENICEV 
MAID A VALE 

The Specialist Local Agents 
Tel: 071 289 1692 
Fax: 0712663941 


VICKERS & CO. 


THE CIRCLE, SEl 

I Bed Rannted Aptekar Co Tower 

(Moony avwQ^n^BiGmden Scene Psfci8& 
Ibbde bcSties wbb Aetna Su reeidcaB. 
IMS pw. 

ADMIRALS COURT. 
TOWER BRIDGE PIAZZA. SEl 
2 Beil Raahbed A|« wbh 2 B to ma iwnlncbag 
Town Wjc. Setae Partaeg. 020 p.w. 

VOGANS MILL. SEl 
: Bed fwaidadAftcbneBToMT Bridge. 
t^OqmiWMboMfom 
Seenrefodhg £283 pw. 

Contes MerietMcCnrthr. 
Docbteuib OOce Tet 071 497 36t9 


GUERNSEY - SMELDS A COMPANY LTD 
* South EaptonariB. St. Patar Port One of the 
WtentfS Impest teriepenrient Estate Agents. 
Tet 0*81 714445. Fax 0*81713811. 


GENEVA 12 MMITES - French vlogn 8 0 * 
Gnnma canh«L agterb Mmy mod houH 
1/3 am. Magrdlvtom ML Gtonc and Alp*. 
230 nq in phi* odor. 8 bath, 3 bare, dbi 
pge hM m uto nAig pooL FFr 4JOOOOa Td 
(33) 50427101 or (41) 228180087 


FRENCH PROPHUY NEWS. Froe Uonthty COTE D'AZUR naBrhtanHQ,«ansbdl«itf 
Old. new and aid prop- legal cotemn ale. dmac^5dUbKl2ietxp3blf1.pcmvMrm2 
Aaktorymn tee copy now 081-8*2 0301. 1 A itei T IITiUTI ~nrfT iryv«n^CT ffD 


Weekend. FT 


RENTALS 


BUYING FOR INVESTMSrrr WD idemtfy 
Sw best opportunities tar you mroughout 
cemral London and provide ■ complete 
padaga service: Acquisition. Finance, 
FumMilng, Lading and ManegemanL Far 
U datab tel: MWIPC - art 483 42SI 


Offers invited. Apply: 
Colebrook Sturrock 
& Co. Sandwich 
0304612197 


Two Eaxlv Victorian Houses 

Centrally vinninl in pretty North Suffolk 
village. I with 4 beds range of brick and 
pamiled outtaikbTi^ atneiuly used as 
studio/offlee with garage, aad workshop 
with loft over. Courtyard garden kaifing 
otuo Urge private garden. Abo attached 
3 bed bouse with small waited garden, 
currently used for holiday lets. 

Both bouses in fast dass order tally 
carpeted and c/h for quick sale. 

Price £155,000 for both 

TEL: 0728 79523 


TTLUNGHAM, ESSEX 

Southminstar B mBaa, 
Burnham art Crouch 7 ml ten. 
LamdaepJmpOOi Street ZS atmates. 

5-bedrootn petted termluae in 
otnmntfing rnral teanten. 2 bathroom*. 

4 reception rooms, mature g a rde- L garag e 
indomtmilrtiny Assured Shoohold 
Tenancy for l year. £8.001 per tnanm 
Reft CNOTH/IB/Dau 
I Ceval Hal. Chchnsford. Essex. CM12QF ; 
TeL B245 253201 


TOTTE RIDGE GREEN - LONDON N2 
Stgnfa fluid pep, h ordutia locaffon. 4 
Bads • 4 Racap - Carta - Dhl Gar S/C 
Arenac*. App. IV* acres sac. gredens and 
(ynds Dteant ruai vtowa E880A00 fhaU. 
0484 890383 Richard Watson & AtfOc. 


PORTMAN SQUARE WI 

Luxury spacious flat Ideal tor corporate 
use. Large reception, dining room, two 
double bads, dressing room, two baths 
with shwrs (ora enstfte) t/t kitchen and 
balcony. Access to ganfen & tennis 
courts. Garage by sap. nag. 

£450 p.w. 

Ernest Owais&WBIIams 
Tat 071 8298386 


WORLDWIDE RESIDENTIAL PROPERTY SUPPLEMENT 

SEPTEMBER 24th 1994 


PnbRshed in Loaden, Phris, Fraaklhrt, New Yeti; aad Tokpo. 

If yon have residential property for sale or to let ia (he UK or ov egca a 
advertise in this SPECIAL ISSUE which will reach approximately 1 auUka 
home buyers or tttntnht in 160 countries. 


BARBICAN EC2 Sth lateg 1 bad duptoc 
with balcony. £92.600 Barnard Marcus 
TeL OT1 8392736 Fmc 07T 436 2648 


GRACIOUS LIVING 
An opportunity to Live in ■ 1 bed. 2 bath 
apartment, within a Grade i listed 
Country Hnj»p to Bocfcfa ^ i— A ire set 
in acres trf landscaped grounds with 
lakes. Available to let folly furnished 
£650 per mouth. 

For farther detaas contact 
Fdojkks Keeters ( 0865) 200012 


BARBICAN A 6)h Soar one bed tat rahetrtf 
batwaen Doc '92 and Jan '94. £135.000 
Frark Harris & Co 071 6007000 


KENSINGTON/CENTRAL 

LONDON 

Largest selection of quality 
properties, £180-C1500pw. 
From 3 wks to 3 yrs. 
Chard Associatss 
071 938 2605. 10-7pm 


Examples: 

LINEAGE a £10 per tine 
(minimum 3 lines) 

(5 words approx per line) 
&g. 3 lines s £30 + VAT. 


CANNES CENTRE AFT. fin.nU 
acre Bdn. 20 m pod. pr hr. Orta owner. 
Tet 0426 007282 


DISPLAY at £35 per 
column can 
(minimum size 3x1) 

C4Sr 3cmxlcol = £105 + VAT 


S.W. PRANCE 
RURAL POSITION. 

Easy reach of luge tarn. 300 acres 
gcmly doping Ncrtb to South. 
Supetb stentiim ft ettaate. 1 hour to 
Medteuranean. Planning granted 
for ktsm rod raddanliaL 


CITY EC4 1 bad ptod A Tams wttt partU 
river views- £69.850 Barnard Marcus 
Tat 071 636 2736 F»c 071 436 28« 


KNIGHTSBRIDGE 


En qu iri es 

Teh 0X26 741414 or Fern 0X26 7414IS 


CHELSEA HOUESEARCK A CO Wa 
represent tha buyer to Save time and 
money; 071 937 2281. Fax 071 837 2262. 


Excellent furnished studio 
flat with stunning views 
Nr Harrods. £650pcm 


La Mancha, Spain 


Tel: 071 584 8646. 


BARBICAN a CITY Selection at flan to tel 
tom ESSOpe m. Mte 6 months. Rank Hants 
SCO 071 0007000 


DISPLAY with photograph 
£35 per col cm mono 
£48 per col cm colour 
eg 7x1 Mono = £245 + VAT 
75U Colour = £336 + VAT 





PROPERTY 


Graduate 

TO CAMBRIDGE 


SOTOGRANDE. 

SOUTHERN SPAIN 

GOLF & MARINA ESTATE 
For luxury resale villas 
& beachfront apartments. 
EURO PROPERTY 
ADVISERS 
Tel: 0725 519251 
Fax 0725 519394 


EXCLUSIVE SHOOTING 
ESTATE 

Fantastic irild partridge 
shooting. A magnificent, newly 
baflt and folly decorated 
manor boose 770 ha phu 
lease, 300 ha. Price: £L8m 
Fax Out) 48821 49 78 


FOR FURTHER DETAILS CALL 071 8734935 FAX 071 873 3098 

If you have a property you wish to promote in dm special worldwide mglmte 


wnpie* foe coupon and send ta: Sonya MacGregor. Kerideatbi Property Adrertaa*. 

Fhmncul Times, One SouJhwaik Bridge, London SEl 9HL 


IwooMOtt I UHSACS l . fprSPlAY I ; |DISP1AY - COUJPK PHOTO] 
rDSFLAY4 MONQPWrtO 1 


Southacre Park. Cambridge An elegant development of 
luxurious 2 and 3 bedroom apartments, set in acres of mature, 
tranquil. landscaped gardens - many with balconies or terraces 
Yet just 1 mile from historic University City of Cambridge. 
Isn'i it time you graduated to the undisguised luxury of 
Southacre Park? 


I I would like lurihi-r mlormarinn an properties at Souifui ru Park Cambridge. 


Dnvt Cambridge. CB2 217 



FOR SALE 

NoRhon Portugal - Minlto 
New Luxury Manor House 
Near Beautiful Beaches. 
Excrfoit 5 Bed - 4 Bathroom (1 lacuzzJI. 
Large Dining and Parties Room. 
Quiet POsUam 

Supah Sea an! Cvwitxysldc View, 
doer Highway (This Year I 
Ca> Fmc 3512904811 


Pleair ceckac year im aad pMn if appropriate or 

«mm 30 d ar ao Lia per GncX 


ha Mtewki hap fore (a 


INTERNATIONAL property tribune. 
Free formally & service magsztoei Ftequeat 
fins 0483 455254 Fax 0483 454886 



COSTA DEL SOL PROPERTIES KreteAr 
Offices. For information & Price tot ring 
061 903 3781 anyttew. Fa* 3659 


APPOINTMENTS 


PENZANCE. South Cornwal. Realder«ol 

Ettate AgMicy Unnagre roqured. MHw & 

Crenpony. Ftoasa write wttt a tul Cv he 
EMttte FRM. KOer & Cu Marroon Housa. 
TruoTRI 2RF. 


DerteaaTdlto. 

Ptenws /Cheqn lo be aads p>rdde re tee HaaeUl Tone.) 

OCBnjne □ ACCESS OVBA 

CamneTOerl I I jJJJJJJJJJJXLU 

ErqayDate! 1—1 I I 1 U 

Rare dthba^ftteireycrefiianl -tec £ 


jeorr DMUII IMi.S: ('OI.f.K RTII'M I'l LMULK. MONO Ul li SLIM I \Wk| 

































FINANCIAL TIMES 


WEEKEND JULY 23/JULY 24 1994 


WEEKEND FT XV 


PROPERTY / GARDENING 



R esults from Savins and 
John D. Wood, for the 
year ended April 30, 
reflect the strength of 
the London property market Sav- 
ills’ pre-tax profits increased 126 
per cent, from £1.44m to 
with the agricultural and residen- 
tial side contributing fi.ism 
(£458,000) thanks to firmer i-nndon 
and farmland markets. Foreigners 
made up more than 40 per cent of 
the buyers in London. 

Wood reports pre-tax profits of 
> £881,000, against a £291, ooo loss 
,, the year before. London turnover 
“ was more than 50 per cent higher, 
and nea r the peak of 1987-88, while 
country and agricultural turnover 
rose 24 per cent. The price inflation 


Cadogan’s Place 


Results reflect London’s strength 


rate in central London has been 
around 20 per emit in the past 18 
months. 

■ A report from Cluttons reveals 
an average central London price 
rise of 10.3 per rent In file year to 
June 1994. with roughly a fifth of 
that coming in the wnwi quarter 
of this year. Houses increased more 

than flats- 

Fulham and Pimlico have risen 
more - proportionately s peaking - 


than Knightsbridge and Kensing- 
ton; indeed, the short supply of 
houses in Fulham led to an average 
annual increase of 16.3 per cent, 
which is almost twice as much as 
for flats <84). 

■ Handsome price, handsome 
flat . . . agent de Groot Collis 
(071-235 8090) is seeking offers of 
more than 22 m for the 28-year lease 
of a ground-floor Knightsbridge 
apartment in Cadogan Square, 


SWL Besides use of the garden in 
the square, it opens on to a shared 
garden at the hack of the terrace. 
But its treat is spectacular joinery: 
French oak floors and deep mahog- 
any in one bathroom. The other has 
burr maple, even on the lavatory 
seat and the ceiling. A huge minor 
emphasises the beautiful grain of 
the wood - and the sense of being 
in your own early-18th century cab- 
inet 


■ The major part of a Gloucester- 
shire village manor house with 
three acres of grounds and gardens 
is being offered for sale, freehold, 
by Butler Sherbom of Buford, 
Oxfordshire. (Tel: 0993822325). It 
is looking for offers of £395.000 for 
the seven-bedroom property on the 
edge of Kencot, a Cotswold stone 
village, 14 miles from Swindon and 
22 miles from Oxford. The house, 
listed grade n, is believed to date 


to the early 17th century. 

■ Lovers of Victorian architecture 
are offered a rare opportunity at 
Ramsgate, Kent The Grange, built 
by architect and writer A.W. Pugin 
early tn the 1840s, is for sale, coin- 
ciding with an exhibition about 
him at the Victoria and Albert 
Museum in London. This house was 
a revolt against the classical/Geor- 
gian tradition in domestic architec- 
ture, and affected design for 


decades. 

In brick and stone, it has three 
floors and an imposing tower with 
views over Ramsgate harbour to 
the Channel. The stained glass tn 
the chapel includes saints Augus- 
tine and Gregory, pins Pugin and 
his wife and family. The price is 
£300.000 from Knight Frank & Rut- 
ley in Tunbridge Wells 

(0892-515 Q35). 

■ At South Holmwood near Dork- 
ing. Surrey, a house designed by 
Sir Edwin Lutyens in the Dutch 
style is on offer for £400,000 from 
John D. Wood (071-193 4106). 
Called The Dutch House, it has an 
unusual Y-plan. 

fiC 




For those who fancy a village of their own 

all country estates contain such a bonus. But there are plenty of other reasons for spending big on rural living , says Gerald Cadogan 



At E2.75m'pliiK the H ay croft estate in the Cotswofds 


•• ■ .f 


FT 



At KSOOflQO under the hammer? Woodxook House In Co. Wexford 


I t is rare that a complete 
estate - includin g the 
village - comes up for 
sale. The last one was 
Glympton Park in the 
Cotswolda, sold to controver- 
sial Australian tycoon Alan 
Bond in 1968 for a reputed 
£llm-£13m. (It was sold an 18 
months later.) Now, another 
Cotswold estate is for sale with 
1,748 acres and an entire, 
unspoilt village of 25 houses 
and cottages. 

Between £8m-£lQm will buy 
Salperton Park, a late-Georgian 
mansion set amid parkland in 
one of the most beautiful parts 
of England. VHtage apart, the 
deal includes a farm. 199 acres 
of woods, and a partridge and 
pheasant shoot The vendor is 
Victor Watkins, a building 
entrepreneur, who bought it in 
1981 and has improved house 
and land greatly. The a pwnt is 
Savills. 

True estates are large par- 
cels of land, usually over 500 
acres (unlike the houses with a 
few acres that agents label 
“estates” to main* them sound 
more than they are). Buyers 
are attracted far various rea- 
sons: anumg them the hPUBP 1 . 
the or the farming . 

Most buyers have not owned 
an estate before, and where to 
pitch a bid is an art Buying 
agent W illiam Ge thing, of 
Property Vision, first works 
out the price of its parts - 
which may be the samp as the 
lots into which large properties 
are often divided - and 
assesses how many others 
could be interested. Then he 
looks at the drawbacks. Is the 
house too near a road? Does 
the land have gaps where bits 
were sold off in the past? 

Then wimes the tricky ques- 
tion: is the whole worth mare 
than the sum of the parts? For 
Salperton, which is so clearly a 
unit the answer is yes. The 
same would apply to another 
Cotswold estate, Haycroft near 
Narthleach, for which SavDls 
is seeking offers over £2.75m. 

This has fewer acres (638) 
than Salperton but house and 
land are in a valley, which 
helps to integrate the other 
buildings - a miQ house, three 
cottages, bams and a stable- 
yard. Then, too. there is pheas- 
ant and duck shooting. 

For SaviHs, 1994 is proving a 



At SSnv-SIOm: Salperton Paris, comple te wflti 1,748 acres and an entire vdagb of 25 houses and cottages 


bumper year for marketing 
estates. Also on the firm's 
books (far £L5m) is Chilham 
Castle and its 298 acres in 
Kent There is a 17th century 
brick mansion (with additions) 
and a garden said to have been 
shaped by the noted designer 
John TradescanL 

Chilham is near the Channel 
tunnel station at Ashford and 
there have been inquiries from 
abroad. Possible uses are as a 
hotel or some other type of lei- 
sure development - the castle 
has been open to the public - 
or a company headquarters. 

Other residential estates for 
sale include West hall (430 
acres) in Aberdeenshire, a 
tower house with Victorian 
extension pins a sauna, heated 
swimming pool and tennis 
court all indoors to defeat the 


Scottish weather (from Smiths 
Gore: offers over Elm); and 
Zeals <375 acres) in Wiltshire, 
listed Grade I (Egerton, 
£22Sn). 

Owners usually prefer to sell 
an estate as a whole in order to 
maintain what they have cher- 
ished. but this does not always 
work ont. At Tythrop near 
Oxford (Savills), thp farmland 
is mostly under offer but the 
magnificent big house awaits a 
buyer. At Stratton AucQey near 
Bicester (Strutt & Parker), and 
Brede Place in East Sussex 
(KFR), the house has gone and 
the land waits. 

Christopher Wilson, of buy- 
ing agent Wilson & Wilson, 
stresses that farming is a prof- 
itable business again. 
Although uncertainties lie 
ahead - such as how the Euro- 


pean Union will review the 
money-gulping Common Agri- 
cultural Policy - he says that 
“net pre-tax yields of 9 to 10 
per cent are feasible if there 
are enough economies of 
scale”. This usually means 
buying more land while using 
the same number of men and 
machines. His firm will pre- 
pare a business plan, including 
a three-year cash-flow analysis, 
for a new owner. 

Financial institutions selling 
farming estates, such as Ariel 
Farms (part of the BBC pen- 
sion trust), win do very well as 
land prices have risen steeply 
over the past 18 months. 

In Cambridgeshire. Ariel 
(through KFR) is offering 
Woodwalton (1,693 acres) at 
£2£5m (to indude two farm- 
houses. three cottages, farm 


buildings and a shoot). In 
Essex, Ariel has little Braxted 
Hall (737 acres), with a superb 
partridge shoot - the vendors 
advise retaining the game- 
keeper - and an irrigation 
licence for 30m gallons to 
ensu re the best potatoes (also 
KFR, offers over £L75m). 

The best sporting estate on 
the market is Gnnnerside 
(26,485 acres, mostly heather) 
in West Yoikshire, with a rich 
variety of beats and some of 
the most exciting grouse shoot- 
ing in Britain. Savills seeks 
substantial offers. The same 
agent is asking £L35m for Scar- 
gin (4,222 acres) with a smaller 
grouse moor in Teesdale, Co. 
Durham, where Murray is joint 
agent. 

Where, though, do the 
pounds go farthest? Probably 


Ireland. The splendid Wood- 
brook House in Co. Wexford, 
with a 39ft-long drawing room, 
a cantilevered spiral staircase 
and a park, is on sale for the 
first timp since the house was 
built in 1780. Hamilton 
Osborne King will auction it in 
Dublin on August 9, suggesting 
I£5 00,000 for house and 238 
acres. 

■ Information: Hamilton 
Osborne ■ King, Dublin 
(010-353-1-676 0251); Knight 
Frank & Rutley, London 
(071-629 8171); T. Murray, Bos- 
well (091-526 1191); Property 
Vision, London (071-602 8788); 
Savills. London (071-499 8644); 
Smiths Gore, Forfar (0307-468 
080): Strutt & Renter, London 
(071-629 7282); Wilson & Wilson, 
London (071-738 9889X Withers, 
London (071-936 1000 ) l 



W henever something 
Improves, other people 
complain. Why ever do 
we listen? For nearly 
five years, they turned me off a gar- 
dener's godsend; they let me shelter 
behind the excuse that my new gar- 
den was too dry. 

In the 1970s, I grew bostas like an 
adventurous madman. They revelled 
in my beds of pure pig-manure. Then, 
people started complaining that they 
were over-bred and over-priced. Their 
great suppliers in America seemed to 
have lost sight of reality: could you 
really face up to owning a hosta 
called Zounds? 

Even if you cannot identify a hosta, 
you have probably got one. They are 
those richly-leaved plants which re- 
appear in spring in shades of green, 
blue and green-yellow and which are 
about to flower on long stems with 
mauve and white tubular buds. 

Since the 1960s. the fanciers have 
moved in and the rest of us have 
found that these boldly-leaved plants 
are almost indestructible. Today, 
there are hosta-groups. hosta-freaks 
and I suspect that people swap them 
like horticultural Tupperware. 

But slugs remain their greatest 
admirers. If we can kill off the slugs, 
we may one day have a hosta war. 
The balance of trade is tantalising. In 
the wild, the best hostas grow in 
Japan. Hosta fluctuans is grown 
beside many Japanese doorways mid 
its leaves are used in a clever recipe 
for rice. 

There were Japanese breeders of 
hostas in the 1950s, but the 
Americans saw their potential, took 
parents home and made them a plant 
for the family yard. Their market is 
enormous, but the Japanese are 
returning to the children of their heri- 
tage. They are continuing to breed 
new forms and are planning to bring 
wild varieties into London. 

In Britain, we use them fully, 
encouraged by all the experts and 
well served by our leading nurseries. 
Hostas belong in the most civilised 
and fashionable settings. The big 
grey-blue leaved sieboldiana Elegans 
is the perfect foil for the taller older- 
fashioned roses where it was often 
used by that great garden-planter, the 
late tanning Roper. 

Hostas now turn up in pots on their 


Gardening/Robin Lane Fox 

Why not host a hosta 
in a civilised setting? 



own, a favourite feature of no less a 
designer than David Hicks. There are 
now so many that you can host a 
hosta in any good garden: seven years 
in a row, Sandra Bond, of Goldbrook 
Plants, Hoxne, Eye. Suffolk, has won 
gold medals for her stunning exhibit s 
at Chelsea. She has the biggest list, 
both homebred and American. From 
the Hosta Society, you can also fry 
the Bowdens at Cleave House, Stickle- 
path, Okehampton, Devon. 

The ins and outs concern pots, sta- 
mina. scent and naming. First, the 
matter of pots. Hostas should not be 
lost in the potted jungle which I oth- 
erwise champion: they look and grow 
best in a pot to themselves. Hie prob- 
lem is that most of them develop very 


deep roots over time: they have split a 
clay pot with me and will do the same 
in terracotta. 

There are golden rules, endorsed by 
Sandra Bond. It is best to pot a hosta 
in stages, from a small to a greater 
size over the years: do not start it in a 
large urn when it is young. Always 
got it in a plastic pot which Is expend- 
able: put this plastic holder inside a 
clay or terracotta pot, both to ease the 
watering and to guard against the 
power of the roots. Against slugs, use 
greasing: The bosta’s greatest enemy 
is not a gardener on holiday: it is our 
slimy friend. An experienced reader 
tells me that she smears Vaseline on 
her pots' collars and that it keeps off 
the invader. Slugs cannot ooze their 


way across grease. 

Next, scent and stamina. In pots, 
the best forms are the fortunei group 
because they have the most shadow 
roots. They are also good in gardens. I 
have gone off the highly popular 
Frances Williams, which was the star 
of the early 1980s, because its stale 
yellow edging on the blue leaf turns 
down in dry weather and is slow to 
develop. My new stars are Sum and 
Substance, the blue-leaved Blue Angel 
and Halcyon and the scented Sugar 
and Cream and Summer Fragrance. 

Of an these forms. Sum and Sub- 
stance is the most remarkable. It 
makes a chimp of green-gold leaves 
for which one plant suffices in isola- 
tion. It grows in sun. It is starting to 


flower today in its second year and, 
after a preliminary defence with slug 
bait in April, it is left alone by slugs. 
Its leaves are too tough, tike cheap 
steak. At £8 a plant, it is weD worth 
it, especially as it can soon be divided. 

Scented hostas are also on the way 
up. For years, I battled with the old 
Edwardian favourite, plantaginea, 
which Gertrude JekyU used so pret- 
tily in her green shaded courtyard 
which linked the house and garden. 
Its white flowers are hugely pretty 
and do appear with me. but I realise 
that they refuse to show in the Mid- 
lands and the North. The new Sugar 
and Cream is variegated and far 
stronger, even in colder areas. We can 
expect great things from the new Fra- 
grant Bouquet, which costs £19 and is 
a top Bond recommendation: one for a 
bond-dealer's birthday. 

Lastly, the names are a serious 
problem. At Hampton Court flower 
show, even I could see that some of 
the exhibitors were giving hopeful 
names to bostas which the experts 
would not validate. It is essential to 
buy from specialists, as many of their 
plants will be divisions from a super- 
vised stock-parent 

The trouble is that hostas are re- 
emerging and are stunning value for 
small urban gardens. Price is slightly 
less important where yon can only 
house a few good features and, 
although a hosta disappears in win- 
ter, it has the quality of a natural 
sculpture in a slug-free area. 
Wherever there is money, there is 
muck. 

It takes several years for a young 
hosta to develop its Mi quality and 
you should never judge one on its 
first three seasons. Inevitably, general 
traders may fall to realise that their 
promising young plant is not the true 
speciality which experts can identify. 

The last five years cm the ridelines 
have taught me how much has 
changed among the scattier innova- 
tions with names such as See Saw. 
Already, breeders have blue-leaved 
forms with the elusive white edge. 
They will soon be within our reach , 
and. meanwhile, everyone is after a | 
better texture. The state of the art is 
to breed a hosta too solid for slugs. 
Let us hope that it is not too leathery 
for gardeners who share a slug’s view 
of beauty. 


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★ 


BOOKS 


Stark tale of decade’s evil drug 

Keith Hellawell discusses the horrific challenges posed to society by crack cocaine 


N ewspaper headlines and 
American films Form 
most people's percep- 
tions of crack cocaine. 
Jon Silverman’s book reveals what 
)he drug looks like, its origins, how 
it is used, its cost and its effect on 
the user. He also describes those 
involved directly with it: the law 
enforcers, the increasingly ruthless 
dealers and the desperate addicts. 

His insights dispel any lingering 
doubts about the evil of crack 
cocaine and the threat it poses to 
our society. 

The focus is mainly on Britain 
and Silverman levels some criticism 
at our failure to develop a compre- 
hensive strategy to deal with it 
Crack is a relatively new drug in 
Britain, so to some extent the criti- 
cism is justified. But it is still diffi- 
cult to find any government or law 
enforcement agency which would 
claim to have the answers. 

Earlier this month, I attended a 
conference in New York with repre- 
sentatives from many countries; we 


shared views, we compared prob- 
lems, we examined our policies and 
solutions. But we are all in the 
same boat - there is still no com- 
prehensive answer to the crack 
problem. 

The text outlines that problem 
and describes specific operations by 
the Customs and the police. Some of 
these accounts are personalised a 
Uttle too much, making it appear as 
if it was a single officer with persis- 
tence or flair who was the sole driv- 
ing force. While this is partly true, 
an individual needs the support of a 
team and the strength of an organi- 
sation. behind turn or her to operate 
effectively. 

Silverman does, however, capture 
well the feelings and emotions of 


officers involved in operations - 
their fears and frustrations, the 
highs and lows, their personal sac- 
rifice in the constant pursuit of jus- 
tice. 

As to the traffickers and peddlers 
of this obnoxious cocktail, crack; 
towards the end of his book Silver- 
man. mentions the white criminals 
who see drug trafficking as less 
dangerous and more lucrative than 
robbing banks and have their own 
way of importation (probably 
gleaned from American movies). 

He pays most attention, however, 
to the formation, growth and devel- 
opment of the Jamaican, criminals 
known as “Yardies". The early 
political support for these vicious 
criminals, their spread through the 


US into Bri tain, the trail of sense- 
less violence and the apparent lack 
of remorse is terrifying. 

The accounts of summary execu- 
tions, gang warfare not seen since 
the days of Prohibition, torture - 

CRACK OF DOOM 

by Jon Silverman 

Headline £16.99, 256 pages 


one woman had a hot iron pressed 
against her face then was doused 
with boiling water to make her talk 
- is horrific. 

The haphazard nature of their 
groupings, their false identities, the 
peripatetic nature of their lives - 
moving on false passports, between 


here, the US and other countries - 
make these criminals difficult to 
target The job of the police is made 
even harder by the fear of violence 
among potential informants, the 
near impossibility of operating 
undercover in these areas and the 
fear of being dubbed racist for 
mounting large operations in black 
areas. 

The advent of personal radios and 
an army of children willing to act 
as lookouts and warning sirens 
exacerbates the problems, which 
are ably covered by Silverman. 

For users of the drug, the picture 
is perhaps bleakest of alL Their 
lives are taken over completely by 
little rocks of crack as they fall, 
almost irreversibly, into the fires of 


utter dependence and show a will- 
ingness to maim, kill or even sell 
their children to maintain their 
habit 

The human depravity which lead 
to the sacking of Rome pales into 
insignificance alongside the lives of 
some crack users. Whether we feel 
that they are victims or villains, we 
cannot or must not Ignore them - 
and as yet we have no proven cure 
for their addiction. 

In this very readable snapshot of 
a 20th-century drug. Silverman 
offers the reader an honest picture 
of the effects of such a vicious drug 
on our society but does not, and 
probably cannot, offer solutions. 

He hopes that crack will run a 
cycle - he postulates 10 years and 


says we have five to go, I will not 
hold my breath. 

The reader can, however, be 
assured that all law enforcement 
agencies throughout the world now 
know a great deal more about crack 
and its wake of violence and crimi- 
nality. 

Improved intelligence networks, 
spearheaded in Europe by Europol; 
better liaison and sharing of infor- 
mation supported by the recently 
formed National Criminal Intelli- 
gence Service, and multi-agency tar- 
geting operations of the criminals 
involved are all part of our 1990s 
armoury and In this we do achieve 
much success. 

But if we are to eradicate this 
drug from our society we must help 
people, particularly our young, to 
recognise crack for the plague that 
it is and convince them to avoid it. 
They need help and they need it 
now. 

Keith Hdlawell QPM. is chief consta- 
ble of West Yorkshire Police. 




- \*ts 


Housewives 
and comrades 

John Lloyd on the women behind the Kremlin walls 


T he central interest of 
this book is the wit- 
ness it bears to peo- 
ple - men and women 
- living lives under conditions 
we cannot understand or judge 
without a large effort of imagi- 
native reconstruction. 

It is only moderately well 
written (though it appears to 
be well translated) and it is 
sloppy like much of Russian 
writing on current affairs - 
great unevenness as the writ- 
er's interest waxes and wanes, 
analytical short windedness, 
sentimentality breaking 
through and minimal sourcing. 

But the fascination of the 
subject - the testimonies con- 
tained within it to the lives of 
women who were at once mon- 
strous and oppressed, most 
favoured and most in peril of 
their lives, expected to he at 
once “both Martha and Mary, 
housewife and comrade 1 ' - 
compensates for these defects. 

Apart from the last chapters, 
where recent Kremlin wives 
are presented as brief card- 
board cutouts, the character 
sketches are quite readable. 

The portraits of the first 
wives are the best and most 
poignant. Nadezhda Krup- 
skaya, who married Lenin on 
his exile to Siberia in 1998 and 
who outlived him by two 
decades, is drawn as a woman 
whose enforced modesty of 
expectation for herself - gen- 
teel-poor and plain - led her to 


Marxism, then to Lenin. 

Inhibited and puritan, she 
and her mother were neverthe- 
less friendly to Lenin’s proba- 
ble mistress. Inessa Arm and - 
her temperamental opposite 
but comrade all the same. Len- 
in’s amanuensis in the years of 
exile, she adapted with avidity 
to the role of purger of bour- 
geois filth from the school syl- 
labus after the revolution - 
harming a vast codex of Rus- 
sian and foreign authors, 
including Dostoyevsky, Blok, 


KREMLIN WIVES 

by Larissa Vasilieva 

Wt itknfeld A Nicolson £20.00. 
241 pages 


Akhmtova and Pasternak. 

Vasilieva comments, rightly, 
that “had (she) wielded 
supreme power, she would 
have inaugurated a cultural 
inquisition Ear more effectively 
than Stalin because she was 
better educated than he was. It 
was not just a matter of who 
ultimately led the party 
machine, but of the machine's 
ultimate cruelty ” 

At least Krupskaya was in 
charge of her own life to some 
extent and - though famously 
sworn at by Stalin during her 
husband’s final illness - was 
untouchable after his death. 

Stalin's own (second) wife, 
Nadya Alliluyeva, was half his 
age, gently reared in Georgia, 


yet apparently strong willed. 

Her suicide remains a mys- 
tery: Trotsky, an unreliable 
witness, believed it was a mur- 
derously prompted suicide, 
with Nadya killin g herself 
after being "showered with 
obscenities" by Stalin at a 
Kremlin party. 

Vasilieva. with no proof, 
appears to plump for murder, 
saying that she “had to die. 
Her presence would have pre- 
vented Stalin from fulfilling 
his historic mission. He would 
tolerate no obstacles on his 
path, especially female.” 

Though Stalin, Vasilieva 
believes, had affairs, he 
encouraged a reassertion of 
outwardly bourgeois morality 
in sexual behaviour which 
snuffed out the bohemianism 
of tiie early Bolsheviks. 

Armand herself, Alexandra 
Kollontai and the beautiful and 
flamboyant Larissa Reisner 
were among the leading 
women proponents of a sexual 
liberation, that included the 
acceptance of a woman’s right 
to initiate sexual advances - a 
huge leap for the generally 
middle class or even noble 
ladies who were the leading 
revolutionaries. 

None of those who lived into 
the 1930s were heroines, 
though many are said to have 
been kind. The iron impera- 
tives of the party and the ter- 
ror it inspired entered them as 
it did their husbands, displac- 



'Botti Martha and Mary . . . most favoured and most in peril 1 - kleaBsed Soviet womanhood depicted in a propaganda poster 


tog what our age sees as the 
priority of personal satisfaction 
and individual affections with 
a rigid assumption that the 
party always comes first 
Kollontai did not lift a finger 
to save a former lover from 
Stalin, even when she was 
ambassador to Sweden: later, 
Marshall Budyonny, Commis- 
sar Molotov and even Soviet 


President Kalinin all submitted 
to their wives being arrested, 
imprisoned, tortured, probably 
raped and sent to camps while 
the men — uncomplaining ~ 
laboured on to their high posts. 

When released, these wives 
returned to their husbands and 
in the case of Paulina Zbem- 
chuzina, wife of Molotov and a 
victim of the anti-semitic 


purges of Stalin’s last years, to 
the party and to devotion to 
Stalin. When he saw these 
men. Stalin would tease them 
about missing their wives. 

Khrushchev, the de-Stalin- 
iser. makes the break for the 
wives too. Nina Petrovna, his 
wife, "reassured terrified 
Americans as they saw that 
this vast empire was now ruled 


by a funny frit man and his 
provincial wife, clutching her 
handbag to her ample stom- 
ach". Nina Petrovna had had a 
tough life in Ukraine before 
she ascended the increasingly 
comfortable ladder of power. 

Vasilieva says that her prior- 
ities were in the end personal: 
“She still loved the party and 
fondly recalled past purges!!) - 


yet she would not sacrifice her 
life's companion to Us gaping 
maw". 

While it is too diffuse and - 
fragmentary to be a good book, . 
it does lift the curtain on lives : 
where idealism, self-preserva- -• 
Son, fanaticism, pity, ruthless- 
ness and stoicism mixed into a - 
state of mind which was to 
dominate and cow a country. 


Facade of fragility 

Nigel Andrews on the enigmatic Audrey Hepburn 


A udrey Hepburn was 
one of the most 
entrancing screen 
heroines of the post- 
war generation. Yet she never 
appeared a career film star. 

Site hid the word "talent”, 
seemingly, inside the word 
“dilettante": which left ana- 
grammatically another key 
Hepburn word. “diet”. 

She was an airy, pencil-thin 
beauty who bad suffered from 
bouts of bulimia and anorexia; 
and in her later years as a Uni- 
cef worker she looked scarcely 
less malnourished than the 
African children with whom 
she was photographed. 

Alexander Walker's biogra- 
phy does this semi-invisible 
sprite full justice. He subtitles 
the book "Her Real Story"; 
which means that the family 
skeletons are wheeled out 
early from the walk-to cup- 
board. brushing through the 
daughter’s Givenchy dresses 
on tbe way. 

Father was a Nazi propagan- 
dist who spent the second 
world war in a British jail. 
Mother was a Mosley supporter 
who wrote for Oswald's fascist 
rag Blackshirt. There is a pho- 
tograph of mum ou the steps of 
the Nazi Part}' HQ in Munich 
and there are “well-attested 
reports" that both parents 
attended Nazi rallies. 

This is piquant stuff for any- 
one who had suspected a differ- 
ent upbringing; that Audrey - 
to judge from the pedigree 
manner - had been brought up 
in a palace made of porcelain, 
where the tinkle of tea sets 
vied with the distant cry of 
peacocks. 

Yet a problem childhood - 
father, as well as being a politi- 
cal rotter, walked out on the 
family when Audrey was 



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young - may account for the 
star-making oddities to her 
personality. 

There was that low, lovely, 
gulpy delivery, frill of mysteri- 
ously-sourced nervous energy. 
And there was the feeling, in 
films as varied as War And 
Peace. The Nun's Story and 
Breakfast At Tiffany's, that the 
lithe and soaring charm just 
might he broken, given the 
right nemesis, on the wheel of 
brute ordinariness. 

Walker keeps his book mov- 
ing even when banality does 
threaten to break into 
Audrey’s life; which Ls not 


AUDREY: HER REAL 
STORY 

Alexander Walker 

IVeUenfeU A Nicolson £18.99. 
319 pages 


often. Chapter headings have 
the thump of a Saturday mati- 
nee for adults. “The Girl With 
Death fa Her Shoes” is the title 
for the section about Audrey’s 
wartime exploits carrying anti- 
Nazi leaflets into occupied 
Europe. And JFK’s death has a 
surreal tragic eclat - the act- 
ress broke down in her dress- 
ing-room - amid the fluffy fri- 
volity of shooting on My Fair 
Lady. 

L ike any good heroine in 
the mystery drama of 
Life, Audrey also had a 
doppelganger. 

Her career and that of Leslie 
Caron, Walker notes, were 
bizarre reflections of each 
other. Each began as a ballet 
student; each went on to speci- 
alise in adorable gamine roles; 
each starred opposite Fred 
Astaire in consecutive 1950s 
musicals - Daddy Long Legs 
(Leslie) and Funny Face 
(Audrey 1; each had a major 
success, on stage or screen, as 
Gigi and later as On dine. 

But Audrey was more than 
just a pretty - or funny - face. 
When Billy Wilder picked her 
for two early roles in Sabrina 
and Love hi The Afternoon, it 
was because he saw the native 
intelligence: “She looks as if 
she could spell ’schizophre- 


nia'.” And Richard Avedon 
pounced on her, during his 
period as a Hollywood shutter- 
bug. and immortalised those 
strange wide eastern features, 
like a pixie graduated from a 
Peking sixth form. 

Audrey finally did run Into 
tbe buffer of brute ordinari- 
ness. She met and married Mel 
Ferrer. But Walker argues that 
she probably needed bis pro- 
saic, domineering guidance. 

For years he acted as her 
agent and minder, the only 
roles he seemed up to to bis 
own dull but persevering 
career. In War And Peace Fer- 
rer's Prince Andrei is the price 
we pay for Audrey's Natasha. 
And who can forget, once read. 
Michael Powell's comparison of 
Ferrer's stage performance in 
Ondme with that of France's 
Louis Jouvet. "When Jouvet 
paused, the audience paused. 
When Mel paused, the whole 
play stopped dead.” 

In later years, thanks to 
spending more time with Mel 
and the family. Audrey's 
screen acting became occa- 
sional. But she delivered a 
brace of late delights in Two 
For The Road and Robin And 
Marian. And for a woman 
about to tread the famine lands 
of developing countries, she 
showed a bizarre persistence, 
right to the last, to claiming 
her own glamour rights. 

Those Givenchy dresses were 
a point of principle. She even 
asked for one to play the 
dowdy spinster in Summer And 
Smoke. (Result the role went 
to Geraldine Page.) But then 
Hepbum knew her worth. She 
wanted the right dress to the 
same way that she wanted the 
right truck in her charity 
safaris: because they helped do 
the job. 

The job to Hollywood was to 
be a ministering angel to glam- 
our-starved audiences in the 
recovery years after the war. 
The Job in Africa was to be a 
ministering angel to more liter- 
ally starved people in the 
recovery years that never end. 
And perhaps the actress' Uni- 
cef devotions were a last, late 
bid to make up for those guilt- 
bequeathing parents. 


Fiction/Anthony Curtis 

Gown v town 


W hen John Wain 
died in May, 
aged 69, he had 
been working on 
his trilogy of novels set in 
Oxford for the past decade. 

Parts one and two. Where 
The Rivers Meet and Comedies, 
appeared in 1988 and 1992. 
Posthumous publication of 
Hungry Generations completes 
the work; it is built around the 
lives of two brothers, tbe sons 
of an Oxford publican. One is a 
skilled worker at the Morris 
factory at Cowley, and the 
other a history don at an imag- 
inary college called Eplscopus. 

Where Rivers Meet is the 
over-all title. Not only does 
Oxford stand at the confluence 
of the Thames and the Cher- 
well, it also has two distinct 
faces, as a centre of industry 
and of learning, both of which 
are contained to the work. 

There Is rather more of gown 
than of town to this final vol- 
ume. Events are seen through 
the mind of the academic 
brother Peter Leonard. By 1948, 
when it starts, he has reached 
the age of 38, and he remains 
in Oxford teaching history 
until the crunch-year of 1S56 
with news of the Suez adven- 


ture, and the march of Soviet 
troops into Hungary, reaching 
him as the story ends. 

It was a conscious gamble by 
the novelist to stake every- 
thing on Oxford. It has been 
done to death in detective fic- 
tion and often used by serious 
novelists such as Compton 
Mackenzie, Waugh and Mur- 
doch who have looked back to 
their time there as an essential 
element in a larger work - Sin- 
ister Street, Brideshead Revis- 
ited, The Book and The Broth- 
erhood. But to find It treated 
by a novelist as the summation 
of a lifetime’s experience is 
unique. 

Wain leaves one to no doubt 
as to his deep affection for the 
city in spite of the spoliations 
of Billy Morris, as the hero’s 
father calls Lord Nuffield. 

IBs clever son, historian of 
the 18th century, shares Wain’s 
insatiable curiosity about 
everything from the mating 


HUNGRY 

GENERATIONS 

by John Wain 

Hutchinson £15. 99, 378 pages 


CATALYSTS 

by Stanley Middleton 

Hutchinson £15.99. 266 pages 


habits of tbe sparrows on the 
college lawn, to the construc- 
tion of the P3 MG racing-car 
and the sex theories of Wil- 
helm Reich. 

Their main function seems 
to be to distract the reader 
from the hard core of pain 
that might otherwise make tbe 
book unbearable to read. 

Pessimism about human pos- 
sibility is the dominant mood. 
There is the long agony of Leo- 
nard's divorce and humiliating 
return to live like a single man 
in college; the pain of trying to 
reconcile the bitter after-taste 


of his first marriage with the 
domestic bliss of bis second (a 
cloying note); the pain of the 
death of his son in a motor-rac- 
ing accident and the series of 
disasters that befall other 
members of the senior common 
room. 

The hero is Wain’s alter ego, 
the Oxford don that Wain 
never became. Teaching and 
research was a way of life be 
firmly rejected when he 
resigned his lectureship at 
Reading to 1955 after the suc- 
cess of Hurry On Down. Wain 
could then have become a lead- 
ing journalist critic in London. 
But he did not want to be that 
either. He was made a fellow of 
the Royal Society of Literature; 
after a year he resigned that 
too. 

Instead he went to live near 
Oxford. It was a quiet Industri- 
ous and inevitably insecure 
existence, but it enabled him to 
do his own thing, which was to 


write novels and poetry. 

With Catalysts Stanley 
Middleton shows that he 
belongs to that small number - 
of novelists able to integrate 
convincing accounts of musical 
performance into the texture of : 
a novel of contemporary life. 
They include Proust EM. Por- 7 
ster, Aldous Huxley and JB. ' 
Priestley. 

Here we are with the elderly 
music teacher at a school to .. 
the Midlands. 

His son Is a cellist of renown - 
whose mistress Is an opera . 
star. There are several fine 
descriptions of them in action ■/ 
in a novel that shows with 7 
great subtlety the way profes- 
sional fife acts as a catalyst 
upon private life. 

It does this just as much in 
tbe un gjam orous professions of 
tbe other main characters - ' -- 
accountancy and English 
teaching. 

This quintet weave in and 
out of each others' lives in a ' 
novel that is not so much writ- 
ten as delicately scored. 

Middleton, joint Booker 
Prize-winner, is a master-tech- 
nician of the form. BBs latest . . - 
piece of work will give much I • 
pleasure to its connoisseurs. v 


Beautiful people 


A rtemis Cooper has 
published an excel- 
lent account of 
Cairo In The War, 
not to speak of editing tbe cor- 
respondence of Evelyn Waugh 
and Diana Cooper (her grand- 
mother). Anthony Beevor is 
responsible, among other 
things, for a first-class history 
of the Battle of Crete. They are 
married. Paris After The Liber- 
ation is a good idea which does 
not quite come off. That 
deserves explanation. 

The story - of Paris between 
the Liberation of August 1944 
and the economic stabilisation 
in 1949 - Is fasc inating and 
calls out for an accessible. lay- 
man’s account on the 50th 
anniversary (this book does 
not pretend to be a work of 
academic scholarship, a field 
which is being intensively til- 
led at present). 

The authors are privileged; 
they benefit from access to the 
diaries of the British ambassa- 
dor Duff Cooper (grandpa), 
Nancy Mitford's unpublished 
letters, and various other 
archives of the English Estab- 
lishment to which, 1 assume, 
they belong. 


The value of this access is 
less clear because it tilts the 
narrative towards the beautiful 
people. It is amusing to have it 
confirmed that Diana and Duff 
called de Gaulle “Charlie 
Wormwood" (as in "wormwood 
and gall"). We get an insider's 
view of Louise de Vilmorm 
(Duff's lover), of Nathalie Bar- 
ney (Tlmpdratrice des Les- 
biennes”). of Gaston Palewski 
(Nancy Mitford’s boyfriend), 
even of Cocteau, of Poulenc, of 
Christian Bdrard. 

The first hundred pages are 
to effect a brisk introduction, 
which is a dangerous tactic in 
book-making because it mis- 
leadingly suggests a superficial 
and over-hasty tone to what, 
from 1944, becomes detailed, 
analytical, better. With the 
arrival of Duff Cooper’s diaries, 
tbe book looks up. 

The first theme has to be the 
end of Occupation and the sub- 
sequent tpuration sauvage. 
Again, this is a subject which 
has at last been heavily inves- 


tigated. and we read of Paris 
only. Collaboration was a 
nightmare subject which 
brought much head-shaving 
and arbitrary execution to late 
1944 and even more guilt for 
many years to come. 

Arletty and Sacha Guitry, 
Drieu la Rochelle, Celine, Col- 

PARIS AFTER THE 
LIBERATION: 1944-1949 

by Anthony Beevor and 
Artemis Cooper 

Hantish Hamilton £20. 531 pages 

ette. Chanel, Lifar, Giono, de 
Montherlant, even Simenon. 
Barrault and Clouzot, were 
among many artists who came 
under different degrees of sus- 
picion. 

It was, and remained for 
years, a terrifying topic. Isaiah 
Berlin here offers a useful defi- 
nition of acceptable conduct 
under the German Occupation: 
you could do business with 
them but “you did not have to 


be cosy with them". 

One problem, of course, was 
that the French co mmunis ts 
bad suffered particularly under 
Vichy with the execution of 
hostages and deportation of 
slave labour. Now the commu- 
nists could see a way to exploit 
their sufferings to their bid for 
post-war power. 

This Is the central political 
subject of these years, and tbe 
second theme of this book. 
“There are only two real forces 
in France today.” said de 
Gaulle in December 1945. “If 
the communists win, France 
will be a Soviet Republic; if I 
win. France will stay indepen- 
dent." It was not to be as sim- 
ple and the Beevors (if 1 may 
call them that) track the story 
to fair detail until it is clear by 
1949 that the Fourth Republic 
has corns through. 

The weakness of the style of 
this book is immediately con- 
firmed: "The mood of optimism 
was further reinforced on 18 
July (1949), when Odile de Len- 


onconrt married the Due de 
Goiche, eldest son of Due de 
Gramont, at the Church of 
Saint-Louis des Invalides. The 
right people were still many 
tog the right people." And the 
bride wore Dior. 

So that was all right to 
between many pages of politi- 
cal and diplomatic history w® 
have been given the cultural 
and literary story. 

We are assured of the “arro- 
gant irresponsibility” of the 
French intellectuals, their fra- 
hison des dens, the “dictator- 
ship of the progressive intelli- 
gentsia", Man eventual failure 
of radical ideas to overcome 
the French bourgeoisie - big 
themes - but the reader is not 
always convinced. 

The problem, I suggest, is 
that the Beevors have bitten . 
off more than they can chew. 

They have written an inter- 
esting but awkward combine- . 
tion of a politico-diplomatic 
history of France in the imme- 
diate aftermath of war and the 
cultural story of those same \ 


UlUlUldl OLU1J ~ | ft 

years. But In the event, they ^4h 
have fallen between two .stools. 

J.D.F. Jones V ~ 




1 





FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1 994 


WEEKEND FT XVII 


★ 



ARTS 


Witness to 
a cool 
Shavian 


triumph 

David Murray on Saint Joan, George 
Bernard Shaw’s powerful drama 


W ith Saint Joan 
George Bernard 
Shaw wrote a play 
that requires a char- 
ismatic heroine, but 
plugs her in only at certain points. 
It is not, strictly speaking, a star 
vehicle, and if played fflw one it usu- 
ally founders; Shaw had other hsh to 
fry. 

At the Strand Theatre, the director 
Gale Edwards (Australian, female) 
has got the balance exactly right It 
stirs mind and heart alike, and if you 
have intelligent teenage children you 
should take them along to be stirred, 
as welL Few modem “ classics " com- 
mand our thoughtful sympathies like 
Saint Joan, and still fewer produo 
tions do them such faithful justice. 

The play is not really about 
“Jeanne la PuceDe”, but about the 
ahnost-acddental role she played in a 
larger, much tougher world of pgKHwt 
and religion, of which she understood 
nothing. 

In fact Sami Joan represents a dML- 
lusloned, retrospective, 1920s view of 
History as Realpolitik. The heroine is 
there to fascinate us, but the heart of 
the d rama - and it is drama. not just 
Shavian sparring - lies in the differ- 
ent ways she is perceived and used by 
the political masters, both the French 
(Burgundian) and the Fn gtinh 
All Joan has to do is to he, while the 
real action stretches out around and 
beyond her. In the small person of 
Imogen Stubbs, she is a marvel of 
bright-eyed energy, from her first 
bounding entrance. Distinctly elfin, in 
(act, with balletic touches, and much 
more gamine thangamur, one remem- 
bered Joan Plowright's homely, 
no-nonsense activist (a long way 
back!) with some nostalgia. 

But Miss Stubbs wields a big, trem- 
ulous voice with the best of them, and 
regularly catches us between file ribs. 

Perhaps she could measure a 
greater distance between eager opti- 
mism at the start, and weary desola- 
tion at the end- 

Those Audrey Hepburn eyes do not 
change much, and there was an awk- 
ward moment when she collapsed to 


the floor in despair, too obviously con- 
fident of succour by str ong arms — 
which she duly got As a butterfly 
broken on a wheel, nevertheless, she 
is a radiant creature. 

The production has stark sets by 
Peter J. Davison, basically vertical 
slabs that just once open out to give 
us a fine side-chapel view of the Dau- 
phin's coronation in Reims Cathedral. 

(Bairns, by the way, is sometimes 
Reims and sometimes “Reems", even 
in the mouths of different French per- 
sonnel.) That is all to the good: pictur- 
esque ramparts are not what the play 
needs. What it chiefly needs is a soEd 
team of politicos, both temporal and 
spiritual; and these Mss Edwards has 
supplied in (bH measure. 

Faced with pages of Shavian debate, 

‘In the small person 
of Imogen Stubbs, she 
is a marvel of 
bright-eyed energy ’ 


many a director equips his or her 
actors with a rich variety of tics to 
sugar the pilL Not Miss Edwards; 
instead, shp malms the de lWfPS supply 
the characters - the variously foxy or 
temporising Frenchmen, the hbmt or 
choleric ttn gltah- 

We listen hard. 1 particularly 
admired Bruce Purchase's virtuosity 
with the Archbishop’s speeches, 
which he rattles off quite lucidly at 
high speed, thus saving vital minutes. 
There is a good Dunois from Philip 
Quast, and a properly sullen C-a uchnn 
from Paul Webster. 

Highest praise, though, for Peter 
Jeffrey’s Inquisitor and Ran Bones* 
Earl of Warwick, both of them revel- 
ling in pawky subtleties. Jeffrey is a 
gentle modal of temperate, deadly rea- 
sonableness; Bones - with a startling 
likeness to Norman Tebbit - plays 
Warwick with an air of cheerfal ruth- 
lessness, letting his weary, cynical 
mtpliigpnrp peep through as the situa- 
tion develops. There is just a trace erf 



pain, and distaste, when the execu- 
tion has to be got through. 

Jasper Britton's artful Dauphin sup- 
plies more than mmin relief There is 
a twitch or two too many, but his 
petulance is genuine and sour. 

As young Brother Martin, appalled 
at seeing the trap close, Nicholas 
Rowe conveys strength as well as a 
tender heart. In the epilogue, Gordon 


Langford Rowe Is splendidly unbut- 
toned as the plain En ghah Soldier. 
Among others too numerous to men- 
tion, there is no weak link. 

As Warwick’s testy chaplain, de 
Stoguxnber, David Daker for once 
makes the real voice of Bernard Shaw 
heard. A plain, thick Englishman . he 
fulminates and blusters vengefully, 
but when the chips go down he is 


o verc om e with simple horror. 

In his empirical En glish way, he 
needs to see what a burning at the 
stake means; but having seen it, his 
revulsion is absolute. 

A real vegetarian's argument, that 
amid all the thrust and counter-thrust 
which Shaw miming with such relish, 
this is where the stopper comes, the 
final NO. Shaw was not a cynic. 


Theatre/Antony Thorncroft 

Plot-boiling 900 Oneonta 


T he plays of Tennessee 
Williams are like 
bowls of exotic tropi- 
cal fruit captured on 
the turn from bloated ripeness 
to nascent rottenness. 

David Beaird. in this impres- 
sive pastiche of the master erf 
Deep South Gothic, glories in 
portraying the fruit in gallop- 
ing decay. He is totally over 
the top, leaving audiences 
suspended in that strange hin- 
terland between the heart-grip 
of melodrama and the hysteria 
of farce. 

This is the day that Dandy, 
the oil-rich tycoon who rules 
his Louisiana brood like an ori- 
ental despot, knows he is to 
die. 

He has done with hypocrisies 
and wants his family to finally 
face up to the borne truths - 
the usual melange of incest, 
abortions, drugs and drink and 
low sperm counts. As the skel- 
etons tumble out of the capa- 
cious closet so do the yawns of 
recognition. 


But Beaird, who also directs, 
has an ace up his sleeve. 

Dandy is to make a new will, 
leaving everything to ne’er do 
well grandson Tiger, who by 
whoring, shooting and boozing 
his way through town at least 
shows signs of having enough 
spunk in him to keep the 
dynasty going. 

If Tiger does not come to his 
senses enough to accept the 
fortune, and responsibility for 
the business, within an hour 
then the money goes to the 
Church, represented by Father 
Bourette (Kieron Jecchenis) 
who has popped in to supervise 
the last rites. 

This makes for an exciting 
second half, much stronger 
than the first in every way. 


At the opening Leland 
Crooke as Dandy conveys 
the approach of hell-fire 
in a screeching, stressful, 
performance which wearied 
me as much as it wearied 

him. 

A fter the interval, as the 
family's future falls an 
Tiger, so does the bur- 
den of carrying the whole 
play. 

Ben Daniels, all blond mane 
and barechested glory, copes 
magnificently as he toys with 
wimpish brother Gitlo (Jon 
Cryer, a mess of nervous body 
wringing and manic self-justifi- 
cation); bombed-out sister 
Burning Jewel (EDi Garnett); 
and whore Palace (a tough. 


tart, performance from Sophie 
Okonendo). 

Having got bis plot boiling 
away like a bowl erf jambalaya 
Beaird has problems coming to 
a conclusion. 

There are any number of 
false curtains, and in the end 
he goes for the Kg One, with 
Dandy's family assuming a 
metaphor for the United 
States, which has squandered 
its inheritance in dissipation, 
and should hand over to a new 
generation - a generation with 
its blood flowing fresh and 
uncorrupted from a cultural 
melting pot 

Some of the acting is hit and 
miss, perhaps because the for- 
mat of the play favours carica- 
tures - the alcoholic wife; the 


faithf ul black servant. 

But when Beaird lets himself 
go in a rich, sensual, erotic, 
often witty, language, espe- 
cially in the speeches of Tiger 
and Dandy, then the play tran- 
scends its hotchpotch origins 
and becomes a powerful, poetic 
force. 

Tim Shortal] has designed a 
convincingly realistic set, all 
slats, rich vegetation and whir- 
ring fan. with thunder 

and lightening to suggest that 
God is taking a close interest 
in his potential inheritance. 

This is the first work erf the 
West End Producers Alliance, 
which hopes to bring a new 
audience to the theatre by cut- 
ting seat prices. 

It is an excellent introduc- 



Emtic glories: 900 Oneonta 


tion, an out-of-control roller- 
coaster, but with enough grip- 
ping images to show just bow 
real the unreality of the stage 
can be. 


The Old Vic. 


Off The Wall 

Trading 

places 


W est End audi- 
ences might be 
s mall and slug- 
gish in the sum- 
mer heat but there is a brisk 
trade in West End theatres. At 
last something is to be done 
with the derelict Lyceum, 
acquired by the Apollo Group, 
best known for its string of 
provincial theatres, while next 
week Stoll-Moss, the leading 
t .nnrin^ theatre owner, finally 
gets rid of its rogue elephant, 
the Royalty, which it is selling 
to the London School of Eco- 
nomics for around film. 

The Lyceum is obviously the 
trump card in the poker game 
being played out between the 
Royal Opera House, Covent 
Garden (due to close for refur- 
bishment in 1997); ENQ at the 
Coliseum, (due to close for 
refurbishment, probably in 
1998); a National Dance House, 
which now looks like being 
based in a restored building 
rather than a new structure; 
the Arts Council; and the vari- 
ous other guardians of pots of 
Lottery money. 

No deals have yet been con- 
cluded. The Royal Opera and 
the Royal Ballet might still 
temporarily decamp 100 yards 
down file road to the Theatre 
Royal, Drury Lane, if Miss 
Saigon ever closes and the 
Arts Council finds the money 
for the rent. 

Both companies might spend 
the 2Vz-year interregnum tour- 
ing. But if the Lyceum, with its 
splendid theatrical history, is 
restored, at a cost of £10m plus, 
with the potential to take lead- 
ing opera and dance compa- 
nies, it must play a role, if only 
as somewhere to transfer Miss 
Saigon, or its successor. 

It afl comes down to money, 
which these days means the 
Lottery. The Arts Council’s 
Lottery Fund might look with 
fervour on the Lyceum being 
gilded back to life because it 
could be the perfect eventual 
home for a National Dance 
House, with the dancers mov- 
ing in, (perhaps with English 
National Ballet as resident 
company) after the opera sing- 
ers and Covent Garden dancers 
have returned to their restored 
homes. Lord Cowrie, chairman 
of the Arts Council, is keen to 
see the project succeed and he 
carries weight 
By chance, the Royalty can- 
not be left out of these specula- 
tions. It must remain a pro- 
vider of entertainment and the 
USE, which will use it for lec- 
tures and conferences during 
the day, seeks a tenant for the 
evenings. There are two con- 
tenders for the post, and both 
want to present dance. Sadler's 
Wells is keen to take it on, as 
is the UK Foundation for 
Dance, a new company set up 
by ex-Sadler’s Wells directors. 

It sees the 1,000-seat theatre 
as the perfect venue for mid- 
dle-scale dance companies, 
both British and foreign, and 
sees a wonderful synergy with 
a clas sically inclined National 
Dance House based in the 
nearby 2,000 seat Lyceum. 
With so much energy being 
applied it seems inevitable that 
London will get one, if not two, 
palaces for dance by the mil- 
lennium. 

□ □ □ 

David Beaird's 900 Oneonta, 
which opened at the Old Vic 
this week, is the kind of play 
that makes Tennessee Wil- 
liams look restrained. But how- 
ever melodramatic the events 


on stage as a Southern family 
gathers to battle over grand- 
daddy’s will, they are nothing 
to tbe drama involved in 
mounting the production. If it 
is a hit 900 Oneonta could 
transform West End theatre. 

For this is the first play put 
on by the West End Producers 
Alliance, a group of 17 mainly 
young, or new, producers who 
want to make the West End 
financially accessible to every- 
body - from angels to audi- 
ences. Seats are cheap com- 
pared to average West End 
prices. 

This attempt to make thea- 
tre-going affordable is only pos- 
sible because the owner of the 
Old Vic. David Mirvish. has 
waived his rent for the first 15 
weeks of the run at a personal 
cost of £50.000 and everyone 
else involved has accepted 
minimal rewards. 

Producer Frank Gero is not 
mad enough to try and cut 
Equity fixed salaries but the 
American star, Jon Cryer. has 
accepted £400 a week instead of 
file thousands he might have 
anticipated from a London run. 
and David Beaird is receiving a 
£1 advance as against the 
usual £5.000 for the writer. 
Everyone, from director to 
stage crew, has gone along 
with the cost-cutting, which 


It all comes down 
to money . which 
these days means 
the Lottery 


has enabled 900 Oneonta to 
arrive at the Old Vic with up- 
front production expenses of 
£90,000, as against a more typi- 
cal £160,000, and weekly run- 
ning costs of just £17.000, two 
thirds of the usual bill. 

If 60 per cent of the 1,067 
seats are sold for each perfor- 
mance the up-front costs will 
have been recouped in U 
weeks and then everyone can 
expect a modest pay rise. And 
if 900 Oneonta is a hit then 
those theatre owners who are 
dragging their feet at the idea 
might see this as the salvation 
of a West End theatre cur- 
rently wilting in the heat. 
Whatever the outcome the 
West End Producers Alliance 
has its next play primed for 
September. 

□ O □ 

Unison, the 1993 merger of the 
three unions, Nalgo, Cohse, 
and Nupe, is using the arts to 
make itself better known. It is 
putting £15,000 behind the Brit- 
ish premiere of Dario Fo's lat- 
est play Abducting Diana 
which opens during the Edin- 
burgh Festival at the Pleas- 
ance on August 13. 

Nalgo had always been a 
minor backer of the arts but 
had to overcome opposition 
from tbe more philistine mem- 
bers of the new union. On the 
surface the play is a sexual 
comedy but it also shows that 
"anarchists are the unwitting 
tools of the capitalist society" 
so Unison members can safely 
attend. 

In the cast is Susan Penhali- 
gon who might see her own 
first play produced during the 
Edinburgh Festival. It could 
surprise her she wrote it after 
being hypnotised by her psy- 
chiatrist husband. 

Antony Thorncroft 


A popular and a 
classic treat 

Alastair Macaulay on Harper and Cook 


A tremendous week in 
London for lovers of 
singing. At the 
Proms on Tuesday. 
Heather Harper, the greatest 
British singer since Kathleen 
Ferrier, returned from retire- 
ment and after serious illness 
to sing Berg's “Altendorf Lie- 
der" with the calm vehemence 
anil commanding ph rasing that 
have been her hallmarks. 

And at Sadler’s Wells Bar- 
bara Cook, the greatest singer 
in popular music today, also 
returning after illness, made a 
long-awaited return to Britain. 

The differences between tbe 
two are obvious. Harper is col- 
lected, high-art, and her 20th- 
century specialties include 
Strauss. Britten. Tippett Cook 
is bubbly, populist, and her 
repertory goes from Kern and 
Gershwin to Sondheim and 
Amanda McBroom. It is as 
absurd to imagine Cook in Tip- 
pett's “The Ice Break" as to 
imagine Harper recording "The 
Disney Album". 

Now. however. I hear some 
resemblances between them. 


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These resemblances are not 
fortuitous, for they simply 
show that both Harper and 
Cook were trained along truest 
rlnwriral lines. 

In both cases, it is less voice 
than musleality that makes 
them so remarkable; in both 
cases, the voice has been nour- 
ished by bringing tog ether tbe 
pearly upper register with the 
biting chest notes into one 
equalised range. 

In both one hears a vocal 
style that is based, on the one 
hand, on dean entry into notes 
and, on the other, sculptural 
portamento connections 
between notes. And, while both 
offer the dear and natural dic- 
tion, they attend first and fore- 
most to musical phrasing. 
There is no exaggerated 
emphasis on special words. 
The words seem simply - inev- 
itably. it sounds to us - to find 
their inevitable place amid the 
shape designed for them by the 
music. „ , . 

Like all great artists. Cook is 


made up of contrasts. She has 
vulnerability within power, 
grandeur within intimacy, brio 
wi thin calm. She often reaches 
phrases of burning intensity, 
but presents herself with 
no-nonsense happiness. She 
comes from an old and conven- 
tional showbiz tradition, but 
she takes pains to emphasise 
the work of women composers 
(Amanda McBroom) and 
women lyricists (Dorothy 
Fields), She is proud to deliver 
new or recent songs, hut is 
equally proud of creating roles 
in such classic musicals as 
Bernstein's Candide and She 
Loaes Me. 

Cook is the only popular 
singer active today who should 
be taken seriously by lovers of 
1-iimgiml music. She is not a 
crossover artist - though she 
tells of singing Madam Butter- 
fly's entrance music (with the 
high D flat option) as an audi- 
tion piece for Leonard Bern- 
stein - and yet most of today's 
opera singers could learn 


plenty from her. Every phrase 
is packed with Interest, and 
every sang is shaped from first 
to last Has any singer since 
Callas matched Cook’s sense of 
musical architecture? I doubt 
it 

It begins with the simple elo- 
quence with which she phrases 
a line of recitative; you hear 
her plant lines such as "There 
goes my young intended. Tbe 
thing is ended. Regrets are 
vain" with such simplicity, but 
with such underlying grasp of 
rhythm that they brand them- 
selves into your mind. 

Then, when it comes to the 
sang itself, she shows the point 
of each note to the phrase and 
of each phrase to the whole. 
The endless variety with which 
she combines legato and stac- 
cato, or distinguishes between 
staccato and marcato, is excep- 
tionally rare. 

Anyone who knows her sing- 
ing will know how thrillingly 
she can build even some inno- 
cent little songs to powerful 



Barbara Cook at Sadler’s WMs: long-awaited return after Hlnese 


climaxes, but I was amazed 
ibis time to hear her. amid a 
hauntingly plangent account of 
Irving Berlin's “Change Part- 
ners and Dance With Me", 
start rising towards one such 
climax - only to pause, and 


then to taper the song away 
into the tenderest diminuendo 
dose. 

As for "Losing my Mind", 
she places its numerous little 
four-note phrases into a struc- 
ture so firm that she might be 


singing Faur6, not Sondheim. 

This is a highbrow way to 
talk about someone whose rep- 
ertory includes “Sweet Georgia 
Brown" and John W illiams 's 
“Can You Read My Mind?" 
Cook herself is very simple. 

“They tell me I belong to the 
golden age of musical com- 
edy," she remarked on opening 
night “I wish they'd told me 
that then - I’d have had more 
fun.” And very sunny. She can 
take old chestnuts such as 
“You've Got to Accentuate the 
Positive" and rnafe?> thara live 
again, as if from some core of 
true faith. 

Several of her songs - such 
as “Better with a Band" and 
“Sing a Sang with Me" - are 
about singing itself; and others 
are about dancing. Cook is a 
stout woman, and yet she is 
easy with her own body. 

She half-dances through 
some numbers, and there are 
moments when her yxzz. sense 
is such that she slaps all her 
weight, with the beat, on to 
one foot, and your kinesthetic 
sense half-expects her to burst 
into a tap routine. 

But she sings a quiet song 
like "Why Did I Choose You?" 
from complete Inner stillness, 
only raising her arms slowly as 
she reaches the conclusion, in 
a gesture so powerful that it 
embraces the theatre. 

She sings "Why Did I Choose 
You?" - as she always sings 
her first encore - without any 


amplification. You realise all 
the more clearly then just how 
steady her breathing, how 
expansive her phrasing. 

Earlier on, there were times 
when the 16-piece band 
sometimes is too loud for her 
(though the way she can then 
cleave through an orchestral 
tutd with one of her own is 
always a major thrill). I think 
she has lost a little of her 
upper register, but am more 
struck than ever by the way 
that both chest and facial 
resonances are combined in 
her vocal tone. 


At Sadler's Wells until July 
31. 


/ ^8 

ST. JOSEPHS 

HOSPICE 

MAKE ST. LONDON E84SA 
(Cfarity Rrf. No. 231323) 

Dear Anonymous Friends, 

You did not wish your gifts 
to be spoiled by human 
words of thanks. Their 
value geams In tbe untold 
rebel you silently provide. 

We have honoured your 
trust and always wffl. 

v Sister Superior. 

V— r 


i 




XVIII WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 


* 

ARTS 


In praise of a 
joyful return 
to the basics 

Antony Thorncroft writes on a controversial 

artist with the exceptional talent of wit 


H elen Chadwick 
is exceptional. 
Her uniqueness 
does not come 
from “Piss 
Sculptures", the ice artefacts 
that she moulded by urinating 
In the Canadian snow, nor 
from "Cacao", a monumental 
fountain of heaving, shimmer- 
ing, bubbling chocolate, a work 
as stridently sexual as it is 
coprophiliac as it is disturbing, 
which confronts the ears and 
noses of visitors to Effluvia, 
her new exhibition at the Ser- 
pentine Gallery. Helen Chad- 
wick is exceptional because 
she is witty. 

Most contemporary artists 
have a miserable vision. Their 
creations either dwell on the 
seamy underbelly of life or 
assume a detached, geometri- 
cal, aversion to reality. 

Chadwick rejoices in the 
basics, using her bodily fluids 
to give a very personal applica- 
tion to her work and getting 
great pleasure from the com- 
monplace. One of her composi- 
tions at the Serpentine consists 
of a brilliantly decorative bal- 
ancing of green marmalade cir- 
cling lustrous pink Windolene 
- it has been bought by the 
Prudential to hang in its staff 
canteen. 

The “Piss Flowers", an army 
of 12 etched snow scenes, 
somehow become more excit- 
ing when you realise that 
Chadwick and her male part- 
ner strained hard in their cre- 
ation from start to finis h 
By happy chance these cre- 
puscular forms also project a 
sexual image, for. as the cata- 
logue to the show points out. 


the cavities formed by the 
urine, “strong and hot Cram the 
woman, diffuse and cooler 
from the man" create shapes 
that are inversions of human 
genitalia , penile Cram the 
woman, lahiai from the man 
These are the incidental hap- 
penings that, to its supporters, 
suggest that God smiles on 
contempor ary art 
Another serendipic pleasure 
from Effluvia is the catalogue, 
which wallows in ponderous, 
philosophical, gobbledegook to 
describe what are just wildly 
imaginative ideas, cleanly and 
prettily crafted, and immedi- 
ately accessible. 

I f the results are nnfashion- 
ably decorative, even 
uplifting in their primary 
brightness, Chadwick retains 
the kwarit of the avant-garde to 
shock: Cadbury was quite 
happy to supply the chocolate 
for the volcanic heavings of 
“Cacao” but shied away from a 
promotional credit. Chadwick 
is a serious artist but she does 
not take her creations too seri- 
ously. You can buy “Cacao", 
but she has not yet priced it 
Make her an offer - she would 
settle for a smart BMW. 

The Chadwick show will 
pack them in at the Serpen- 
tine. with attendances that will 
rival those in the spring of 
Damien Hirst, who brought in 
50,000 (“half the animal atten- 
dance at the Courtauld", points 
out Julia Peyton-Jones, direc- 
tor of the Serpentine and pas- 
sionate advocate of the new). 

It should certainly secure 
Chadwick a no minat ion for the 
1995 Turner Prize, an honour 


which strangely eluded Hirst 
when the 1994 short list was 
annoncwl this week. 

One selector suggested that 
Hirst’s work bad failed to prog- 
ress - seen one mutilated ani- 
mal, seen them alL Perhaps a 
mere ability to shock is finally 
rumbled as a precarious base 
on which to build a career as 
an international artist. 

Whatever the reason the four 
1994 finalists - sculptor Ant- 
ony Gormley, painter Peter 
Doig (the first worker In paint 
to be nominated for five years), 
photographer Willie Doherty, 
and sculptor-installatlonist 
Shiraz eh Houshiary - are 
unexceptional to the point of 
tedium 

It seems the jury wanted to 
promote artists who had not 
yet made the critical break- 
through. who needed a helping 
hand But there is no glimm er 
of a 21st-century Master among 
this quartet 

* 

There might just be at the 
Business Design Centre in 
Islington, where graduates 
from many of the nation's art 
schools are showing, and sell- 
ing, thpir creations. This Lon- 
don showcase is an excellent 
idea, now firmly established. 

There are still some London 
postgraduate schools that hold 
aloof, but more fool them. Any- 
one wanting to see where their 
taxes go, or who wants to buy 
the next Hockney for £50. 
should rush along . Of course 
these days the brightest art 
students are in love with the 
market There is well-produced 
promotional literature, with 
high prices. 



Helen Chadwick's ’Wreath to Pleasure no.1* in the Effluvia exhfoWon: the artist ret ains the knack of the avarttaarda to shock 


I enjoyed the show 
immensely. It takes hours to 
work the room. Virtually every 
object - and there are hun- 
dreds more objects than paint- 
ings - needs deciphering, apart 
from those that are blatantly 
sexual or provocatively daring, 
like the circle of kneeling 
white figures in which heads 
are totally lost inside bottoms. 

In many cases the visitor 
will miss the point - the large 


installation piece of vast 
metre-long knives, cauldrons, 
anH a soundtrack of orgasmic 
heavy brea thing suggested a 
human about to be turned into 
dinn er, but who knows? Well, 
perhaps the artist, Lottie Rad- 
ford, does. 

Students still seem to be 
hooked on the ideas of 
Du champ , now about a century 
old, and assorted objects are 
trailed all over the stands. Art 


in the traditional sense of 
drawing, even painting, seems 
to have been left far behind. 

But at least the ideas - how- 
ever banal, repetitive and dole- 
ful they may be - seem to be 
better crafted than in the past 
Sam Crook’s c ontemplat ion on 
hair, climaxing with a beauti- 
ful, suspended entombed plait 
Earl Vickers papier-mache 
cow; and of course, the delights 
of confectionery, the new art 


medium. Helen Chadwick has 
a lot to answer for, but, really, 
the kids are all right 

Anyone treking the middle 
ground between the basal and 
the elitist who wants to dis- 
cover where contemporary art 
for the private collector stands, 
should pop into Angela Flow- 
ers, Silver Place, Soho, gallery 
during the next week. 

She has just completed an 
imaginative fortnight at which 


dafiy one established artist - 
Eileen Cooper, Glynn Williams 
- has chosen another artist 
whose work they admire and 
who they feel deserves a wider 
airing. Angela Flowers has no 
control - husbands choose 
wives, teachers their profes- 
sors. but flie results, compris- 
ing one piece by each selected 
artist and priced between £200 
and £1.500, give an insider's 
view of art now. 







v ‘ 





f u • 


i.1W! ■’ -’ 


Epic whimsy gives festival flair 

Karen Fricker finds the offerings at Chicago’s theatre festival a mix of the bizarre and boring 


C hicago seems a natural 
choice as host city to the 
only regularly scheduled 
festival devoted solely to 
international theatre in the US. Its 
bustling theatre community pro- 
vides an ample assortment of 
stages, and its audiences are eager 
for new experience. 

The eight-year-old International 
Theatre Festival of Chicago is still 
finding its legs. There was a sense 
of caution this year but the greatest 
risk - commissioning an outdoor 
theatrical extravaganza from the 
punky Dutch ensemble Dogtroep - 
produced the most festive results. 

In its evocative venue, a tented 
amphitheatre on Navy Pier on Lake 
Michigan, Dogtroep created Camel 
Gossip m, a work of epic whimsy 
that is fresher and more entertain- 
ing than that of comparable new- 
age circuses - neither as twee as 
Cirque du Soleil nor as gratuitously 
violent as La Fura dels Baus nor as 


archly self-conscious as Archaos. 

Not much plot here, just a series 
of images and vignettes: a lumpen, 
hard-hatted fellow unexpectedly dis- 
gorges a shapely woman from his 
coveralls, who proceeds to destroy 
his shanty house and build a tower 
from the wreckage. A dozen white- 
wigged harpies dangle over the 
stage in brightly painted cabinets, 
then troll the audience sporting 
bizarre head-dresses, which amplify 
their breathing. They then joyride 
through the audience on old-fash- 
ioned bicycles, a combination rock 
and oom-pah-pah band serenading 
in the background. 

Most astoundingly, throughout 


the proceedings it rains on stage, a 
gushing downpour that makes the 
tempest in An Inspector Calls look 
like an April shower. How do they 
do it? That is just the point; Camel 
Gossip mis an exercise in wonder, 
an enormous anil b affling jumpstart 
to the imagination. 

Providing the festival's main- 
stream bookends were the Gate 
Theatre of Dublin's well-travelled 
production of Juno and the Puycock 
(which I left too early to see) and 
Alan Ayckbourn's latest farce. Com- 
municating Doors, fresh from its 
Scarborough premiere. 

In theory, it is an enlightened 
idea to include the work of 


England’s contemporary comic mas- 
ter in Its programme (the Royal 
Shakespeare Company, the Renais- 
sance Theatre Company and the 
National Theatre have been fea- 
tured in previous festivals), but a 
shame that Communicating Doors 
finds Ayckbourn so far off form. 

A bedroom farce cum murder 
mystery cum Back to the Future- 
type time-travel tale. Communicat- 
ing Doors links three women from 
different decades in a plan to save 
themselves from a sleazy man - 
husband to two of the women - 
who plans to kill them all 

The action takes place in a very 
posh hotel room whose inside door 


serves as a time portal 

Though the first act is at once 
silly and confusing, the play trans- 
forms into something richer and 
more satisfying in the second act, 
as the women's manipulations of 
time turn a growing bond between 
two of them into a blood knot This 
uneven muddle is made worse by a 
sluggish production directed by the 
playwright himself. 

The Attis Theatre Company, a 
young Greek group, insisted that 
their two productions not be trans- 
lated into English so as not to 
detract from the viewing experi- 
ence. This ended up. in the case of 
their production of Aeschylus’ The 


Persians, to be self-defeating. Virtu- 
ally actionless, the play consists of 
long descriptive speeches, as the 
Persians, waiting for news of a hat- 
tie between their troops and the 
Greeks, learn that their nation has 
been brutally defeated, and mourn. 

There is an interesting dialogue 
between classic and contemporary 
time periods at play in Theodores 
Terzopolous’ production. The trans- 
lation, we are told in the pro- 
gramme, mixes ancient and modern 
Greek; the performers’ black gowns 
make reference to ancient and cur- 
rent styles; and at one point the 
performers brandish photographs, 
perhaps of Gulf War victims but we 


never find out Though the compa- 
ny’s work reflects a great serious- 
ness and physical rigour, without 
sufficient interpretation of what the 
words actually mean, the audience 
is slighted of a full theatrical ex- 
perience. 

Attis’ second production, a con- 
temporary play called The Kanon 
by VassUis Vassikehaylglou, was 
reportedly more visual and active. 

Audiences and critics alike were 
impressed with the young Mexican 
ensemble Taller del Sotano (Base- 
ment Workshop), which presented 
two works in Spanish with English 
translation. Robert Lepage's Needles 
and Opium was another favourite. 

The festival stinted on American 
offerings - the only entry being two 
funny but theatrically slight one- 
woman shows by the Latina lesbian 
comedienne Marga Gomez - but 
local productions provided a more- 
than-ample unofficial fringe to 
make up for this. 


Striking Chagall 

Richard Fairman visits Schleswig-Holstein 


Perfect 


Puccini 



Anyone with a passion tor 
music end hi-fi wBI fed 
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in the true tradition of many 
small British companies, we 
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for quality. 

Flat out we hand-produce 
hardly more than 100 pairs of 
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The resist? Nothing short of 
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Pnces from £1 ,000 to £20.000. 
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T he most striking 
image at this year’s 
Schleswig-Holstein 
festival comes cour- 
tesy of ChagalL A mural dis- 
plays a colourful world popu- 
lated by strangely dislocated 
figures, including dancers per- 
forming physically impossible 
hand-stands, a one-legged con- 
ductor and a violinist without 
a head. 

This is one of a group of wall 
paintings originally intended 
for the Jewish Theatre in 
Moscow, left behind when the 
artist emigrated in 1922 and 
only signed in the 1970s. 

They have not been seen 
before in the west and form 
part of a fascinating Chagall 


exhibition at the Schleswig- 
Holsteinisches Landesmuseum. 

The festival was fortunate to 
have caught the exhibition on 
its way round Europe, as it 
provides a visual counterpart 
to the year’s musical theme. 

Musicians and actors, poets 
and dancers, all the figures in 
the wall paintings are Jewish. 
Two or three years ago, when 
binding and sponsorship was 
easier to come by, Schles- 
wig-Holstein was able to draw 
up a wide-ranging programme 
for the 1994 festival. It was to 
look at Jewish music from a 
variety o£ standpoints, includ- 
ing works banned during the 
Third Reich, visiting Israeli 
musicians and music by con- 


temporary Israeli composers. 

The subject remains a sensi- 
tive one. The synagogue in 
Lfibeck. one of the main towns 
on the festival's roving itiner- 
ary, was recently the target of 
an arson attack, and concert 
venues where Jewish musi- 
cians were performing found 
themselves guarded by police 
with alsations. 

The first concert last Sunday 
brought together all the festi- 
val's Jewish sub-themes on one 
evening. It was given by the 
Israel Symphony Orchestra 
Rishon Lesion, founded in 1988, 
of which half the musicians 
are Russian emigres. 

While many professionals 
arriving from Russia discover 
that their qualifications are 
not accepted in Israel, the 
main problem for musicians is 
to find an orchestra that can 
provide work, so founding a 
new one (if the money can be 
raised) is the path to follow. 

The programme included one 
piece that qualified more or 
less as “banned” music, a short 
elegy entitled Ytekor for viola 
and string orchestra, composed 
by Oddn Partos in 1947, remi- 
niscent of Bartok in its har- 
monic colouring. 

Another short item com- 
prised the "new" piece, Ben- 
Zion Orgad's A Vigil in Jerusa- 
lem from 1978, which made up 
in nocturnal atmosphere what 
it lacked in musical substance. 

In addition, we had Brigitte 
Fassbaender as the lead soloist 
in Die sieben TodsQnden by 
Kurt Weill, who remains a cen- 
tral figure in the story of what 


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Sol 
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21 Jul 
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DR. JOHN 
ALLENTOI 199 AINT 

EZ5. £22.50. Cl 5 


THE 1S4LEY BROTHERS 

£20, £17.50, £12.50 


ELBJONO. ROY ROGERS A THE DELTA RHYTHM KINGS 

Tickets for 6pm- £20. £17.50. £12.50 _ _ 

Tickets lor 9pm. £25. £22.50. E15 Coptel Rattq pic 


Uon 
25 Jul 
7.30 


5A1NT-SAENS: ORGAN SYMPH Phtltiormonla Orch, Djong 
Viciorin Yu icondl Nicolas Kynaston, Jorge Osorio. Rossini O*. 
William Tell: Tcnolkovsky Piano Cone No.1: Saint -Safins Laurels & 
Cyprossea. Sym Nog £16. £16. £12. £9. £6. £■« ‘PhJhBnnonla Uti 


MILTON NASC 1 MENTO A HIS BAND 

1 27 Jul Only UK show Dy one of Brazil's most M loved musoans wnose deeply 
{7 JO moving music and rtai voice has stunned audiences worldwide. 

E2Q.EI5. CIO Serious Spoataxrt 


Thu HINGE AND BRACKET 

|28 Jid tan Betsey (Domone) and Die English Festival Opera Orchestra. 

? jo a mined bog including Gilbert and Sullivan, Novnilo and orchestral 

pieces vwtn a memorial flnald. e20.El5.ClO A and W Prods. 

I QUEEN ELIZABETH HAUL 


|Sm 23 
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THE AMERICAN SOUTH 


Muerc, theatre, liters tore, dance & estisnona from the Southern States. 
Allen nuHiM, Robert Ward. 

The Savoy Ooucet Cajun Band. 

Jamas Dickey. WHIIam Feme. DevM Reusseve, 

The Hoknee Brothers. Roadside Theatre. 

Jvnebug Production*, Guy Clark. Ralph Stanley. 

CoB Bos Office lor laaHei/detate. • *SBC 




Chagas’s 'Die Liebenden in Schwarz 1 , from 1910 on show at the festival 


happened to music in Germany 
in the 1930s and 1940s despite 
having emigrated to the US; 
and, to finish. Mendelssohn's 
Fifth Symphony, the “Reforma- 
tion". As yet, the orchestra's 
playing lacks finesse and 
bloom, though the dry acoustic 
at the Schloss in Kiel did not 
help. 

For the second concert they 
moved to the theatre at Itze- 
hoe, two years old and a more 
flattering hall for musicians. 
Bart 6k' s Suite from The Mirac- 
ulous Mandarin certainly 
seemed more vital and Schub- 
ert’s Ninth Symphony dis- 
played some rich-toned string 
playing from time to time, 
although the orchestra is still 
some way behind its compatri- 
ots in the Israel Philharmonic, 
due to visit Schleswig-Holstein 
later in the festtvaL 

Noam Sheriff, the Israel 
Symphony's chief conductor, is 


primarily a composer and 
Tuesday’s programme included 
the premiere of his Piano Con- 
certo. It was played by Lud- 
mila Berman, a Russian 
emigre. 

With both brevity (it lasts 
barely 15 minutes) and a cheer- 
ful tonal style to its name, this 
should not have alienated any- 
body who came for the Schub- 
ert after the interval- 

various influences hovered 
in the background, but the 
finale seemed to settle on Bach 
in its two-part invention piano 
writing and - momentarily - 
Beethoven, when the opening 
bars of his Violin Concerto 
unexpectedly broke in just 
before the end. 


The Schleswig-Holstein festi- 
val runs until August 21; the 
Chagall exhibition at Schloss 
Gottorf, Schleswig, is on until 
September 11. 


The Official London Theatre C. is ids 


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FINANCIAL TIMES WEEKEND JULY 23/JULY 24 1994 ★ 


WEEK-END FT XIX 



CHESS 


BBC1 


7JS Nm. 7J0 FafiT Iho Cat 7.45 Joe 9a R .10 
The AdwnI u« of Sk*py. ft® SWAT Kata. 9LOO 
pareflei a ttXSZ Wemter. 

1038 Grandstand. introduced by Sue 
Barker. 11,00 Cricket Risl Test 

England v South Africa. Coverage of 

the third day's play from Lord's. 

1.00 NflW3.ua Motor ftadng: The 
latest rounds of the British Tourtitg 
Car Championship, 135 Cricket 
1.55 Racing from Ascot The 2.00 
Kaslkcl Osmond Conations Stakes. 
2.05 Cricket 2.30 Racing: The 235 
Princess Margaret Stakes. 2.40 
Cricket 3.10 Racing: The 390 King 
George V? and Queen EBzabeth Dta- 
mond Stakes. 390 Cricket 3.40 
Motorcycfing: Hlghflghts of the Brit- 
ish Sidecar Grand Prtx tram Oonteo- 
ten Part*. 44J0 Cricket 4,55 News 
Round-Up. Tfrnes may vary. 

5.10 New and Weather. 

530 Reglonai News and Sport 

035 Stay Toonadl 

030 A Word fen Your Ear. New series. 
Kriss Aksbusl, Dickie Oavfes. Canal 

Thatcher and Frances E dm ond s taka 
part In the verba! eomnurseatfon 
game. 

030 Pete Win Prizes. Pets indudfrig a 
cockerel and a fish compete In 
bizarre events to win prizes tor their 
owners. With Danny Baker. 

7.00 Flm: The Black Kota. Disney SF 

adventure about space ez^oret a 
menaced by a mad scfen&st with an 
army of deaefly robots. Starring Max- 
knffian Scriafl 11979). 

&3S New and Sport; Weather. 

635 One Foot In the Oram. Cantanker- 
ous pensioner Victor Mefdnaw 
returns from a chaotic foreign hoS- 
day, and beleaguered who Margaret 
is led Into t e m ptati on. Comedy, with 
Richard Wilson. 

035 Police Rescue. New series. A teen- 
ager seriously injured alter crashing 
a stolen plane sues Mickey for new- 
pence. Return of the Austraflan 

drama, starring Gary Sweet 
10.10 FBm: The Terminator. Violent SF 
thriBer, starring Arnold Schwarzen- 
egger as an indestructible android 
sent to the 20 th oentwy on a mur- 
derous mission. WRh Linda HamHton 
(1964). 

1135 Ften: Moving. Richard Pryor plays a 
transit engineer whose cerefufly laid 
plans go horribly wrong when he 
and hte famffy by to move house. 

Zany comedy, with Beverly Todd 
(1988). 

130 Wtethar. 

135 Close. 


SATURDAY 


BBC2 


500 Open IMranity. 

12.15 Ften: Island in the Sun. Romantic 
melodrama charting the effects of an 
rnteMadal love affair on an Wand 
community in the Vitos! hides. 

James Mason and Joan CoBra star 

(1957). 

2.10 GUnamofce. A reformed outlaw once 

again resorts to crime after strug- 

gfirtg tor years to make an honest 
Hvtog as a famer. 

830 FBm: Prkfe and PraiurScsL Jane 

Austen's classic about the mother of 
a Victorian femBy intent on finding 
husbands lor her live daughters. 
Laurence OSvier and Greer Qareon 
star (1840). 

435 Cricket: First Test. Bigland v South 
Africa. Coverage throutfi to the 
dose of play from Lord’s. Subse- 
quent programmes may run lata 

630 Open University Showcase. New 
aeries. Compilation qf the series’ 
best programmes which have influ- 
enced people worldwide. 

730 New and Sport Weather. 

7.15 Bookmark Speck* Afcfaus Huxley. 
Profile of the renowned author of the 
1330s satirical novel Brave New 
World, who later became an ktol of 
die 1960s Ca Btouttm counter-criture 
as a result of his controversial advo- 
cacy of psyphedefle drugs. 

835 The Statue of Lfoerty. Acclaimed 
fflm-matar Kan Bums traces the his- 
tory o* the famous immanent, from 
tte construction In France to the 
1883 unueffing ceremony fn New 
York. 

0.05 Seinfeld. 

030 Screen Tmkk The Clothes hi the 
Wartkoba. An exotic aid rebeBous 
woman resotvas to save her straft- 
toced friend's daughter from a love- 
less marriage. Comedy drama, star- 
ring Jaarme Moreau and Jufie 
Watters. 

1030 Cricket: net Test. England v South 
Africa. Richie Bemud Introduces 
third-day NgftRgtta. 

1130 Woodstock Diary. Day two of the 
1969 music festival. 

1230 FBm: Repo Man. Alex Cox's cutt SF 
drama, starring Emilio Estevez 
(1964). 

2.10 Close. 


GlOO GMTV. 635 Gimme & 1190 The ITV Chart 

Show. 1230 pm Starring from Scratc h . 

130 5TN News; Weather. 

135 London Today; Weather. 

1.10 briemarional Athletics. Jim Rosen- 
thal introduces highlights of last 
night's Sslett Games from Oslo. 

130 Movtas, Games and Vkteea. 

Review of The Fintstones, starring 

John Goodman and Szabeth Per- 
kins. 

2.10 WCW WoridroMe Wresting. 

235 Ufa Goes On. 

330 Burke’s Law. Amos investigates the 
death of a university professor 
whose body is fated in the £xx>t of 
a car. 

435 flN News; Weather. 

530 London Today; Weather. 

5.10 Tfrne Tm, New series. Boutty 
hunter from the future Derisn Lam- 
bert tries to fM two jewel thieves. 

SF action, sta rring Dale Mkfldff. 

6.00 Scavengers. New series. Adventure 
game, with John Leslie leadtog four 
members of The pubic into a foturfe- 
fre environment designed to test 
thek mental and physical abttfes to 
the limit 

730 Celebrity Squares. Con te st a n ts 

compete for cash and cap with the 
help of showbiz figures indutflng 
VteW Michefle, Frank Canon, Gor- 
don Kaye and Frank Bruno. Bob 
Monkhouse hosts. 

730 5m Colombo Cries WbH. Detec- 
tive flutter. Peter Fafc as the scruffy 
sleuth resolves to oonvlct the owner 
of a men’s magazine of Ms business 
partner's rmzder (TVM 1989). 

9.10 ITN News; Weather. 

930 London Weather. 

038 Hfrn: AHsn. A cargo spacecraft 

inadvertently picks up a malevolent 
life-form which proceeds to slaugh- 
ter the crew members. Classic SF 
critter. stoning Sigourney Weaver 
(1979). 

1138 F»rc CAT Squad: Python WoK. 

Action sequel In which the counter 
terrorist team takas on a modern- 
day pirate planning to illegally export 
Plutonian to South Africa. Steve 
James stare (TVM 1988). 

130 Tour of Duty.; ITN News Head- 
lines. 

2.15 Get Stuffed. 

230 Raw -Mjj ITN News Humane!. 

330 Get Stuffed. 

335 The Big E. 

430 BPM. 

530 Hot Wheels. 


CHANNEL4 


930 4-Td on View. 6J6 Early Morning. 1040 
Trane World Sport. 1190 Gaelic Games. 1260 The 
Big 8. 1290 pm A Gel's Fata/UttoyarMEngfijii 


1235 Fine UbeL A former PoW baonet 
is acteicod of being an impostor, 
and finds it harder proving Ms iden- 
tity than he thought. Courtroom 
drama, storing Dirk Bogarde (1959). 

235 Rkre The Spanish Gardener. 

Drama about a dlpiomai who grows 
jealous of his son's friendship with 
thak gardener. Dbk Bogarde. Mich- 
ael Hordern and Jon Whlteiey star 
(1950). 

430 Evolution. 

438 Unde Bephant 

535 Brooksida^ News Summary. 

630 Opening Shot. Behind-the-scenes 
st Smash Hits, Britain's most suc- 
cessful teenage magazine. Thu pro- 
grarane focuses on a young 
Journalist foBowtog an Issue as ft Is 
taken from the pfenning stages to 
final production and dtetrfeutron. 
Plus. Interviews with raid music by 
East 17 and Worlds Apart 

730 Branson: Across s Fiery Sky. Rich- 
ard Branson and Per Undstrand* s 
attempt to fly 6900 mfles across the 
Pacific Ocean In the world's largest 
hot-air balloon. 

835 Tour De Ranee. Stage 1& Moraine 
to Lac Saint -Point. The penultimate 
stage Is an undulating six-hour road 


REGIONS 


ITV MUONS AS LONDON EXCEPT AT THE 

rauownio nans* 

ANGLIA: 

>23 Mwie, Gaia and Mm. US Angie 
News. 190 Mgel UanelTs fodyCw -94. 210 Tuna 
Ryor. (TVM 1985) 350 Knight Hder. 690 Angie 
News and Sport Bl 2D Angfaj Waather. 11 .35 Fwnly 
Plot. (1076) 


1250 Monte Games and Videos. 1JB Border 
News. 140 Mgel Mansers kidyCar "94. 210 Gun- 
Ini Man. (1W 1076) <00 Superstore of Wrest li ng. 
SJOO Border News and Weedier 11.35 Family Plot 
n37q 
CENTRAL: 

1290 America's Top 10. IPS Central News 2.10 
Ro ctepu i L 290 The Mountain Ska Show. &00 
WCW Worldwide WnsstSng. 950 The Fte Guy. SjOO 
Central News SOB Foghorn Leghorn. 11J6 tftch- 
IM (TVM 1974) 


1290 Cruhne C* LOS Grampian Hodina 1.10 
ToMte 1-40 Cufon Cloinne. 2.10 u sem au o na l Ath- 
letic* 240 Beyond 2000. 3J0 Mgea MansaTs 
IndyCar W. 490 S^wntes or WresHfog. 500 
Grampian HeadSnoe *03 Grarrptsn News Review. 
090 Grampian Waather. &2S Sftouette. (1990) 
11JK Model Search. 1LS5 Fam*y PtoL (1376) 
GRANADA: 

1290 Movlas. Gamas and Videos. 1-06 Granada 
News L40 Mgel MansaTs IndyCar TM. 2.10 Gem- 
ini Man. (IVM 1976) 490 Superstars of Wrestfing. 
435 Granada News MO Bugs Buny. 1195 Family 
Pkx. P97S) 

tvnr: 

1290 Movies. Games end Videos. 198 HTV News. 
1-40 Mgel Matters IndyCar *34. 2.10 Beer Wand. 
(1979) 4.16 The Mouean Ox Show. 990 HTV 
New* 599 Cartoon Time. 020 HTV Weather. 1195 
F amity PScL p97Q 


835 FBm: Dial M for Murder. An ageing 
tannfa c ha n p l m i plots to (reader his 
wife for her inheritance, but his 
plana go d teast rously wrong. Hitch- 
cock thrttar, starring Ray MBiand 
(1954). 

1030 The Best Intention * . New series. 
Trilogy of samr-eutoblographieal 
films written by acclaimed Swedish 
cinema and theatre drector Ingmar 
Bergman, beginning with this four- 
pert account of tte parents' court- 
ship and marriage. Stoning Samuel 
Rotor. 

1235 Late Licence. 

12.15 Herman’s Head. 

1230 Just for Laughs. 

130 625 Uwk Sueda. 

130 Pa sse ngers. 

230 Bead* and Butt-Head. 

330 Packet of Three. 


1290 The Umest Hobo. 196 MwxSsn News. 1.40 
Mgel M ans ers IndyCar ’94. 2.10 Cany On Consta- 
ble. (1959) 330 MacGyver. 590 Merten New* 
1196 Crime Story. 


1290 The Champions. 196 Scotland Today. 1.10 
TeMos. 1-40 An fonts Aigh (The Happy waL 210 
IrmmatarW AtNedcs. 2-40 Cartoon Time. 290 The 
Truth About Spring. (1964) 590 Scotland Today 
595 Cartoon Time. SL20 Srxmwh Wefoher. Ql 26 
SBxxietl* (TVM 1990] 1195 Local Hemes. 1195 
One to One. 

TYNE TBBfc 
1290 Burad 196 Tyne Tees News. 1-40 2omx 210 
The Cheep Detective, (is 78) 330 Knight Rider. 
495 Tyne Teas Stouday 1195 FM (TVM 1077) 


1230 SUS. 195 UTV Uve News 2.10 The Mountdn 
Bke Show. 240 The Munaian Today- 90S Kn&x 
Rider. 490 WCW Worldwide Wrested. 590 UTV 
Uve News 598 Cartoon Time- 9i20 UTV Uve News 
1195 Fomly Rot (197Q 


1230 Movies, Games and Video* 196 Westcoun- 
ky New* 1-40 Mgel Monte's IndyCar te 240 
The A-Taem. 395 csnoan The. 390 Deywtcti. 
590 Westeoifotry News 890 Local Wtete. 1196 
FomSy Pkx. (i97« 

1230 Movtae. Gamas and Video* 195 Calendar 
News. 1-40 Zorro. 210 The Cheap Detectiv e. 
(1078) 390 Knight War. 455 Calendar New* 
1195 RtbI (TVM 1977) 


BBC1 


790 DBy the Dfooasur. 795 Kfog fk eanfinger* 
7.40 Heydays. 890 TeBng Tate 215 Breakfast 
with Frost 9.15 FaUi to Faith. 9 l 30 Thta h the Day 
fo the Work! of PoHic& 1090 See Heart 1030 
Hany end the Henderson* 

1035 Crkdcet: Rrst Test Bigland v South 
Africa. Coverage of the morning ses- 
sion from Lord's. 

1230 CountiyFflte Environmental and 
agricultural Issues. 

1238 Weather for the Week Ahead; 


130 Steven SpMhagV Amazing Sto- 
ries. A 17-year-old student la tfla- 
traught when he learns of Ks 
parents’ intentions to return to thet 
home planet Stalling Stephen 
Geoffreys. 

130 EestEndere, 

230 Fitoc C ha rio t s of Hn* Oscar-win- 
ning eframa based on the tree story 
of two contrasting rumets gong far 
gold at the 1924 Paris Olympics. 
Ban Cross and Ian Charieson star 
(1981). 

430 Bfteback. viewers’ concerns and 
complaints. Resented by Sue Law- 
ley. 

530 Jbn’fl Fix It 

635 Haw®. 

6L» Sweet tnspfration. Dame Ocaly 
Saundera chtos to Man Tfrchmash 
about her work for the London hos- 
pice she fowled for the terminaly 
UL Last in series. 

7.00 Small Taft. 

730 2point4 CMkfren. 

830 Good Fortune! Sir David Frost 

springs surprises on people around 
the country. 

630 News and Weather. 

9.05 Galkmgtass. Michael Sheen stars 
as a mantafly B young man, saved 
from certain death by an enigmatic 
stranger. TWo-peit Ruth Bended 
flutter, also starring Paul Rhys. 

1030 Good Forhmel Sir David Host 
presents updates from the earfler 
programme. 

1030 Ma s ter mi nd. 

11.00 Heart of the Matter. Joan Bakewefl 
talks to people from all wafts of Bfa 
who are prepared to break the law 
where they feel democracy has 
failed them. 

1135 Cricket First Test. England v South 
Africa Highlights of the day’s play. 

12.15 F»m: Thompson’s Last Run. 

Robert Mitclum stare In this drama 
about an ageing convict on the run, 
wtth WBford Brimtey as the triend- 
tuned-detective on his trail (TVM 
1986). 

1-45 Weather. 

130 Close. 


BBC2 


215 Open (Mveratty. 210 Uttf 8M* 995 Spacev- 

et* 9 l 50 ReveTs American TeO* 1216 The Roefly 

WM Glide to Britain. 1240 Grange H2 1195 

Dynomlte. 1190 WMa Fbng. 11-46 The O Zone. 

1200 Arnuid Weetnineter. 

1230 Sunday ( Bandsta nd Introduced by 
Sue Barker. 12.35 Cricket: First Test 
England v South Africa from Lord’s. 
1.00 Motorcydteg: Hg h fi y li te of the 
British Bad Prix from B u rlington 
Park. 2.10 Cricket 3.40 Motorcycl- 
ing. 4.00 Cricket 6.00 Athletics: The 
GoodwiS Games hi St Petersburg 
Times may vary. Su b sequent pro- 
grammes may run late. 

630 Rough Guide to ffie Americas. 
Magenta de Vine and Rajan Detar 
tor Chfle, sightseeing in the capitaL 
Santiago, where training for the 

1968 World Cup is al r ea dy under 
way. and visiting Punta Arenas to 
discover why flips to Antarctic Ra- 
ders are al the rage. They also 
travel to Temuco to investigate the 
straggle tor survival being fought by 
the Mapuche Indars. 

730 The Mary Whttehouse Story. Pro- 
ffle of moral crusader Mary White- 
house, following her efforts to stem 
what she saw as the rising tide of 
ffith. sex and violence in broadcast- 
fog- 

8.00 Under the Sul Award-winning 
cameraman and (firector John Bui- 
mer investigates the controversial 
means of poputedon control 
enforced In China, where couples in 
nte areas are only avowed by law 
to have two chflcfren. He fbcittee on 
the case of Bai and Erpfrtg who. 
having just had a third ct^id, have 
had thar TV set confiscated as pun- 
ishment and were told she had to 
have compulsory sterilisaflon. 

830 Monty Python's Hying dreua. 

030 Motorcydbig: British Grand tax. 
H&tfghte of today's 500cc, 2S0cc 
and 125cc races from Donkigton 
Park in Leicestershire. 

1030 Moviedrome. Introduction to the 
first film. 

1035 Fine GW on a Motorcycle. 

Marianne Farthfu* stars In this cult 
road mode about a bored wife who 
dons her leathers and takes off on 
her motorcycle to visit an old lover 
11966). 

1135 W oodstock Diary. Day three of the 

1969 music fiastivaL 

1238 Movfo dro nwL Introduction to 

tonight's second film. 

1230 FOre Psy ch o m art a. Bizarre thrttar, 
s tar ring Beryl Reid, George Seders, 
Nicky Henson and Robert Har- 
dy-(197l). 

230 Close. 


SUNDAY 


200 GMTV. 995 The Unteat Hoba 1215 Ur*. 
1090 Sunday- 11-00 Morning Worartp. 1200 Sun- 
day- 1230 pm An fovltation to n emomber. 1265 
London Today; Weather. 

130 ITN News; Weather. 

1.10 Wafcfen. Brian Walden Interviews 
the new Labour leader. 

230 Hgtiaray to Heaven. Jonathan uses 
physical force to save Marie ond an 
innocent famiy from drug smuggler s 
determined to destroy Oves. 

330 Cartoon Tfrne. 

3.15 nnc The HaUhounds of Alaska. 
Action adventure foBowtng the 
exploits of an Alaskan for trapper 
who helps to retrieve a gold ship- 
ment stolen by a ruthless gang. 

Doug McClure stare (1973). 

5.00 Cky Safari. A fascinating study of 
how wfrd birds flourish in London. 

530 The London Prugsmm* Dozens 
of mothers have been accused of 
sm othering their babies on ths basis 
of controversial research into cot 
deaths. Trevor PtiMps asks K many 
of these famines could be victims of 
a terrible mtstake. 

630 London Tonight; Weather. 

630 ITN News; Weather. 

630 Dr CMnn: M e dicfn a Woma n . Brian 
suffers a brain ln|uy whfle In Scttyfe 
care, and Dr Mate is forced to per- 
form rieHrale surgery to save Ms rife. 
Jane Seymour and Joe Lando star. 

730 Watching. 

830 WycfiffOL The mysterious shooting of 
an archaeological student leads Dat 
Supt Charise WycUffe on a manhunt 
across ComwaL Pofce drama, star- 
ring Jack Shepherd. 

030 nme Mermaids. Premiere. Touching 
comedy about the romantic relation- 
ships of unconventional single mum 
Cher and confused daughter Winona 
Ryder. WHh Bob Hoskins and 
Christina Mod (1990). 

1130 riN News; Weather. 

11.10 London Weather- 
11.15 Inside Thick Orr Crkne. New 
series. Sue Lawiey examine s the 
personal experiences of people who 
have suffered at the hands of crimi- 
nals. Plus, advice on crime preven- 
tion, and celebrity confe ssi ons from 
Carol Barnes, Mandy Smith, Mr 
Motivator and Soan Blowers. 

1235 The Big fight 

1-48 The Restaurant Show. 

2.15 Married - WHh Cftftfrare; ITN 


2-45 Cue the Music. 

245 Frinr Who is JufiS? A woman strug- 
gles to cope with her dual identity 
alter undergoing a brain transplant 
operation. Mare Wlnningtiam and 
Jameson Parker star (TVM 1988). 


CHANNEL4 


210 Earty Morning. 9-46 The Odyssey. 1215 

Saved by the Bel. 1246 Rmted* 11-46 Uttto 

House on the Prafoa. 

1240 Hbic Buchanan RMes Alone- 
Drifter Randolph Scott anfves In a 
smal frontier town ran by an outlaw 
band and helps a young Mexican 
seek vengeance for Ms sister's mis- 
treatment at ttia hands of the town 
buly - leading to the duo's arrest tor 
nudar and ths dead man's artipy 
famfly baying for thak blood. West- 
ern, also starring CnSg Stevens, 
Manuel Rojas and Barry Ket- 
tayfl 958). 

2.15 The Making of a Modem Mystic. 
NovaM aid poet Ancfrew Harvey 
ta&s about his search for spiritual 
enlghtanmont and the loons he has 
met akxig the way. 

3.15 FBnc Prfcte of Am Marines. Power- 
ful frue-Bfe taama about a former 
US Marine vHio figffls to overcome 
Ms problems after being bfinded by 
a grenade blast diAfog a second 
world war battle. John Garfield and 
Beanor Parker star (1945). 

535 News Summary. 

530 4 Goes to G^ndebounw: Eugene 
Onegin. TchaBuwsky’s tragic opera 
baaed on a poem by PuaNUn, a tele 
of frustrated low, betrayal and 
revenge. With Wofdech Drabowicz, 
Martin Thompeon. Louise Winter and 
Bona Proton* in the lead rotes. With 
the London Philharmonic, conducted 
by Andrew Davis. 

245 Tour De fra n cs. Stage 19: Euro- 
Disney to Paris. The final stage, tra- 
tfitionally seen as a victory ride for 
the race leader. 

0.16 Flm: Bad Company. Jeff Bridges 
and Barry Brown play youths on the 
run who team up and become out- 
laws to avoid conscription during 
the American dvD war. Along with a 
posse of guflbto youngsters in their 
charge, they evwituafiy And the 
strain of fife outaide the law too 
much to bear. Offbeat wad West 
adventure, wttten by the teem 
res poosfcte for Bonnie and Clyde, 
and also starring Jfrn Davis, John 
Savage and Jerry Houeer^187Z). 

1035 The AH Salutes EBzabeth Taytor. 
Flm foftowtng the gfttering cere- 
mony when more then a thousand 
of Szabeth Taylor's showbiz friends 
packed into the Beverly HBs Htton 
to witness the former MGM chad 
star recalve the American FBm Insti- 
tute’s fifetime achievement award. 

1135 Farrs Angel DusL ThrSer. starring 
Bernard Gkaudeau (1007). 

13 


REGIONS 


AS LONDON BM W AT TM 


225 The New Scooby Doo Movie* 1206 Road 
Runner. 1290 Oountiywkta. 1255 AngDe New* 
200 Father Dowbig bwestigMea. £65 Total ToraJ 
Total (1970) 690 Survival. 200 AngBe News on 
Sunday 11.10 Aitfa Weather. 


995 The New Scooby Doo Movie* 1096 Road 
Runner. 1230 Gardener's Diary. 1295 Bonier 
New* 200 Parent Trap IV: Hownan Honeymoon. 
200 Sheene; Queen of the Jungle. (T964) 695 
Cartoon Thn* 690 Coronation Strata. 215 Border 


CENTRAL: 

096 The New Scooby Doo Movie* 1095 Road 
Rumor. 1290 Central Ne w ew oo k. 1266 Cararai 
News 290 TMb 12 215 Oanfertog Tfen* 246 
Tender is the hMgtn. (1961) 690 Hide, She Wrote. 
215 Central News 11.10 Local Weather. 


295 The Nn Scooby Doo Meta. 1096 Road 
Rumor. 1290 Gardener's Diary. 1255 Grampfan 
Heatanes 290 Funny GW. (1966} 440 Cartoon. 
490 Movies, Games and Video* 690 The A-Taan. 
215 Grwnpfen Headteas 11.10 Grarrpian Weather. 


225 The New Scooby Deo Movie* 1096 Road 
ftmnar. 1295 Choke Chatta. 1255 Granada News 
290 Parent Trap IV: Heweian Hone y moon. 390 
9heenc Queen of the Jungle. (1984) 696 Cartoon 
Tim* 290 Dr Qirfnn: Medcfee Woman. 215 Gran- 
ada News 890 Coronation Street. 


225 The New Scooby Doo Movie* 1095 Rood 
Runner. 1225 The LAflest Hobo. 1256 HTV New* 
390 The Swiss Fern* Robinson, (i960) 5.16 On 
Your Sheet. 546 Groat Westerner* 215 HIV 
New* 11 .10 HIV Weather. 

990 The New Scooby Doo Movie* 1206 Rood 
Runner. 1290 COPS. 1290 Merkten New* 290 
The Mountain Bft» Show. 290 life Goes On. 395 
The Invtable Man. (1975) 490 H&iway to H eav en . 
5-46 SuvIveL 215 Merkflan New* 200 Mennald* 
OSBO) 


990 The New Scooby Doo Movie* 1093 Rood 
Runner. 1290 Skoosh. 1296 Scotland Today. 200 
Dek* (1964) 390 West Side Story. (1961) 215 
Scotland Today 11.10 Scottish Weather. 
tone mas 
225 The New Scooby Doo Movie* 1006 Road 
Rimer. t22S M e weweek . 1296 Tyne Te 
aos Rmy Gfo. (1966) 590 Tyne Ta 


228 The New Scooby Doo Movie* 1095 Road 
Runner. 1290 Gardening Ton* 1295 UTV Uve 
News 290 Ponce Sbc. 2.10 The Scarlet Pfcn p emeL 
(IVM 1982) 4-45 Mutter. She Wrote 540 Gtanroa 
210 WKnee* 8.16 UTV Uve Ewly Evening News 
11.10 UTV Uve News 


995 The New Scooby Doo Movie* 1095 Road 
Runner. 1230 Westcountry Update 1256 West- 
country New* 216 Doge wKh Dunbar. 246 Betel 
Encdfotar* 215 The Horae Without a Head. (1963) 
490 Mutter, She Wrote 546 SurvML 215 Weet- 
couitry Nous 11.10 Local Weather. 


99S The New Scooby Doo Movie* 1095 Road 
Runner. 129S The UttteBt Hobo. 1250 CWender 
New* 3JS Fumy GM. (1968) 590 Calendar News 
and Washer 


RADIO 


SATURDAY 


SUNDAY 


BBC RADIO 2 

200 Sufala Barot. 206 Brian 
Matthew. 1090 Judl Splm. 
1290 Hayes cm Saturday. 190 
You Cant Have One Without 
the Other. 290 The Golden 
Days of Radio. 200 Ronnie 
Htioru 490 Gocxfoighi Knobbly 
Knee* 5 DO Mck Batracfcugfi. 
6.00 Bob HCWBsa RaqaeBta the 
Pleosm. 790 Cewme 2. 790 
Serenade on the Sand. 990 
Dowd Jacobs. 1200 The Arts 
Programme. 1295 Ronnfe 
HBton. 190 Charles Nov* 490 
Sutata Ban* 


BBC RADIOS 

630 Open UMveroky: Tlw 
Gu« f» Therapy 265 
Weather. 790 Saturday 
Mortem Concert. 990 Pram 
New* wwt DiiHidM Kon 
ftaaeB. 230 Record Reims* 
Hook. Hay*. Dodgwn, 
Owlow, Gcxiflgkn. Bocevdcz, 
B ««hoven. Shostakovich 

1290 SpM gttfW Ag* 190 
•"W too Gordon. LIS Mkttta 
fare, 240 StfortOi* 590 Jas 
Record Request* With 
Groftray snrtv 646 Key 
{J'W’ONtt. WHh compoeoro 
Cofen Mathews and Poul 
PMIeraan. 230 Two-way 
CeoHray itoofe. 790 
^ Oon 19W. Brenaxt 
*^«feioclL Stoefiu* Bartok. 
J*® 1 - ftewryjfbroahev. 0-40 
3: Deed Perfect By 
FWcher. StesrtagTom 


WDdnson. 10L20 Sorry RoAn* 
Jazz concerts featuring the 
tenor ewopbonlet 1290 Ctoe* 


BBC RADIO 4 

200 New* 

210 The Forming Week. 

250 Prayer tor the Day. 

790 Today. 

990 New* 

995 Sport on 4. 

990 Breakaway. 

10190 Pack the Book. 

1090 The lipman Teet 
1190 (FM) TaStfoa Poktic* 
1190 2W Spedat 

1190 (FMf Euoptda. 

1290 (FM) Money Bo* 

1226 (FKO A Look Back at foe 
Future. 

190 (FM) Nows. 

1.10 FM) Any Questions? 

200 (FM) Any Answers? 
071-580 4444. 

130 FM) Playhouse: The 
Amazing Test Match Crtm* By 
Atfrtan Altogton. 

490 (FM) Hratnvy on tee Hoof. 
490 (FM) Science Now. 

590 (FM) Re on 4. 

240 (FM) Sbc Of Club* 

200 FM1 New end Sport* 
225 (fM) The Mate Steal 
Sefcaon. 

250 (FM) Ad Lib in Auatrafe 
720 Kntektoecope Feature. 
790 Satwday M^it Theatre: 
The Judas Ns* By Shfoey 
Cnrklfo 

920 Music In feknd. 

990Tan wTerv 


1200 New* 

1216 Word of Mouth. 

10-45 They Don't SM Maks 
That, Do They? 

1190 A hS(y« at tee Opera. 
1190 Brave New World. By 
Atdous ttafey. 

1290 Now* 

1253 Shipping Forecast 

1243 pria) Cto3e- 

1243 2W) As World Service. 


BSC RADIO 5 LIVE 

695 Dirty Tedite 

230 The BraaMest Programme. 

990 Weekend wkh Kershaw 

and Whittaker. 

1195 Speeifll Assignment. 
1195 The Ad Break. 

12JQ0 MWayBWon. 

12.15 Sportacatt. 

194 Sport an Rva 

69fi Ian Botham's Ste-o-St* 

795 Saturday EOtlcn. 

235 Aslan Perspecthre. 

035 Out This Wete. 

1096 The Treatment. 

1190 NW* Extra 
1295 After Hours. 

290 Up Al ffight- 


ETOIILD 8BMCE 
BBC for Europe can be 
re ce hmd in western Europe 
on Median Wave Bta ! « 
ft&of at these tfmee BSTt 
200 Morgeiimsgazln. 690 
Europe Today. 790 wratd and 
British New* 7.15 The Wretd 
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190 World Now* 190 Words 
of Faith. 1.15 Multitrack 
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News Summary; SporteworkL 
490 World New* 4.15 BBC 
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590 World and British New* 
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790 News end features fo 
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News Summery; Write On. 230 
Short Story. 6-45 From the 
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1090 Nesohour. 1190 World 
New* 1196 Wxfls ef Fakh. 
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for the Asking. 11-45 Sports 
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World and Britah News. 1.15 
Good Book* 190 The John 
Own Shew. 2.00 News 
smwr, play Ot tea Week: 
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Newtek. 490 BBC En^isti. 
*45 News end Press Review In 
German. 


BBC RADIO 2 

790 Dm Medswi. 095 Bob 
Hafoass Requaets ihe Pleasure. 
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490 End of the Pier. 490 Stop 
Something Shnpte 600 Ctarte 
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890 Sinday Half Hour. 990 
Alert KTOttv MLOOWtte a Smke 
end a Song. 1296 Steve 
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BBC RADIOS 

230 Open Urivenky: PopTOer 
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Key's Sunday Morning. 1190 
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1-40 BBC Prams 1994. 320 
Haydn and findemkh. 490 
Norte German Radto 
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Twentiste Century Music Can 
Be ftrt Pottene. Enesar. 

Britten, Wtaamson, Berio, 

Cage. Bertrerfan. 695 
ktanaetoftaa on Record. 
Raccrtflnga of Ceear Rendrts 
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Pram Nee* 690 BBC Prams 
1994. Rmsky-Koraakw. 
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Sunday Play: Vlad tea Irrpetar. 
By Mafo Sorescu. S&rfog 
John Mat 1195 Chofr Wbrie* 
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200 New* 


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200 New* 

210 Sunday Paper* 

216 Letter from Amerte* 

990 Morning Service. 

1090 the Archer* 

1190 (FM! MetSumwBv* 

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1046 Home Truth* 

11.16 FOskJng Your Neck. 


11-46 Seeds o( FTOth. 
1290 New* 

1290 Shfopfog Forecast. 
1243 (LW) As BBC World 
Srovto* 

1243 (FM|( 


12-15 (FM) In the Psychiatrist's 
CMr. 

190 (FM) The Worid TNa 
Weata nd. 

290 (Ftq Garttanea' Question 


290 (FM) Ctoealo Serte The 
expadtian of Hungry Cfinker. 
390 (FM) Pick of the Week. 
4.15 (nq Power end Dtorader. 
690 (F 14 FTOffl the Gftter to 
theQUcfr 

590 (FhQ Poetry Ptoasel 
890Sb(Craoekftew* 

215 (FM) Letter from ScoBsnd. 
230 (FM) The Secret Oration. 
790 Barging acroes Europe 
790 The AhporL 
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290 fl.W) Open Urtwtity. 

890 (FM) Reatang Aloud. 

990 (FM) The Nafixal Hfotnry 
Pregrenm* 

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RADIO 5 UVE 

20 SHatPurarot* 

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1290 Mddey Edttkfo. 

1215 The Big Byl* 

1JK Sunday Sport 
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795 Black to the FuU* 

200 The UkfotHiB Preview. 
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1190 N^a Extra. 
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BBC for Europe con be 
rec e i ve d in we stem Europe 
on MetSum Wave 848 kHZ 
(463n4 at these tknee BSft 
890 News and features in 
German. 690 Composer or the 
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News. 7.15 Letter from 
America- 790 Jazz For The 
Aakfog. 200 World New* 215 
Musio As It We* 230 From 


Our Own C or respondent 260 
Write On. 090 World New* 
990 Words of Forth. 215 The 
Greenfield CoBeetion. 1090 
Worid News and Business 
Review. 10.15 Short Story. 
1090 Folk Routes. 1095 
Sports Roundup. 1190 News 
Summary; Science In Action. 
1190 BBC English. 11-46 
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German. 1290 Newsdesfc. 
1220 The John Dum Show. 
190 News Sranmary; play of 
the Week: Bliss. 290 
Newshour. 200 News 
Summary. The ft* Fool on the 
Moon. 390 Anything Goes. 
4.00 Worid New* *15 BSC 
English. 490 Newt and 
features tn German. 690 World 
and British New* 5.15 BBC 
Engteh. 200 Worid News and 
Business Review. 215 Pieter'S 
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in German. 200 Bast on 
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090 World Now* 999 Wads 
of Felih. 21S A Quenten of 
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1200 Newshour. 1190 Worid 
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from America, 1196 Sports 
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Moca 190 Worid and British 
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190 fo Pratts of God. 200 
News Summary: The Uncreated 
Light. 246 Music Ae It Wta. 
200 News desk. 390 

Composer «* tee Month. 490 

Newsdesfc. 490 BBC Eng&sh. 
495 Fhte nagsdn . 


The small town of Sanghi 
Nagarc (pop 10.000), neaT 
Hyderabad, becomes tbe 
Improbable centre or world 
chess next week when it hosts 
the Fide quarter-finals, part of 
the eliminators for Anatoly 
Karpov’s title. 

Sanghi Industries, a textile 
firm. Is providing £110,000 to 
stage GeUand v Kramnik, 
Anand v Kamsky. and Salov v 

Timman Karpov has a bye to 

ttye semi-finals. 

it is all down, to Vishy 
Anand. India's best ever 
player. The script calls for him 
to defeat Kamsky, overcome 
Karpov in the semi-final or 
final, defeat Gary Kasparov in 
the rival PCA version of the 
world championship, and thus 
reunify chess. 

Anand Is a brilliant talent, 
who often moves twice as fast 
as opponents while outplaying 
them , but his fans are asking a 
lot If Kamsky wins. Fide’s con- 
test will suddenly be reduced 
to the ex-Soviet championship. 
Sanghi 's further support will 
be in question, and the PCA 
can relax. This week’s game is 
a previous encounter on Indian 
soil (V Anand, White; G Kam- 
sky, Black; New Delhi 1990). 

1 e4 C5 2 NfS e6 3 d4 cxd4 4 
Nxd4 a6 5 Bd3 NfS 6 0-0 Qc7 7 
Qe2 d6 8 C4 g6 9 Rdl Bg7 10 
Nf3 Nc6 11 Bf4 0-0 12 Bc2 e5 13 


Be3 Nb4 14 Nc3 Nsc2 15 QXC2 
Qxc4 16 Bxd6 b5 17 Bb6 Bb7 
18 Nd2 Qc8? Qb4 19 Rd3 Rfc8 is 
at least equal 

19 Qd3 Nh5 20 g3 Qh3 21 
Nd5 Kh8 22 Qfl Qxfl+ 23 Nsfl 
f5 24 Rdl NIB 25 Nxf6 Bxf6 26 
exf5 gxfS 27 Rd7 Be4 2S Ne3 
RacS 29 b4 Bf3 30 Bel f4 31 
Nfi Bg77 Black should play 
RC2J 32 Ed2 RIC3. 

32 Nd2 Bg4 33 Ra7 Rc2 34 
Ne4 Rxa2 35 Bc5 Rd8 36 
Be7Re2 37 Rfl Rc8 38 BTC BxfB 
39 NrfS Bf5 40 g4 R£8 41 Rdl! 
A textbook rook-knight mating 
net B§€ 42 Rdd7 Rel+ 43 Kg2 
13+ 44 Kh3 Resigns. 

No 1031 



White is in check, but he mates 
in two moves, against any 
black defence (by E. Gross). 
Solution. Page XVTU 

Leonard Barden 


BRIDGE 


My hand today comes from the 
Guardian Pairs of some years 
ago. I was playing with my 
great friend and favourite part- 
ner, Lewis Ellison, who was 
sitting South. 

N 

4 J 7 6 

VAKJ92 

♦ 7 5 
A J 10 8 

W £ 

4 5 4 3 2 A A Q 10 8 

f 10 8 3 f 7 5 4 

♦ 43 fKjea 

♦ K 9 72 * 6 5 

s 

4 K 9 

¥ Q6 

♦ A Q 10 9 8 

♦ AQ43 

With both sides vulnerable, 
East dealt and passed. South 
opened the bidding with one 
no-trump, promising 16-18 
points. I replied with three 
hearts, and my partner’s re-bid 
of three no trumps closed the 
auction. 

West opened with the two of 
dubs - not a great choice - 
which was taken by dummy's 
10. Lewis returned a diamond 


and finessed his 10. which 
held. He now led a low club, 
taken by tbe king. West 
switched to the three of hearts 
(it really was not his day) and 
the queen won. The declarer 
saw the chance of making 12 
tricks - but there was a snag. 
East might have started life 
with four diamonds but he 
might aiso hold the ace of 
spades; then, there would be a 
certain squeeze against him. 

South cashed ace and queen 
of clubs, followed with ace, 
king and knave of hearts. At 
this point, East held spade ace, 
and king, knave aurf six of dia- 
monds, while South held spade 
king, and ace, queen and nine 
of diamonds . 

When dummy’s last heart 
was played. East was subjected 
to pressure which he could not 
withstand. He threw his spade 
ace. so South threw his nine of 
diamonds, finessed his queen 
and claimed 12 tricks. South's 
foresight and fine technique 
gained us a clear top on the 
board. 

E.P.C. Cotter 


CROSSWORD 


No. 8,513 Set by DINMUTZ 

A prize of a classic PeUkan Sooverfrn 800 fountain pen, inscribed with the 
winner’s name for the fint correct solution opened and five runner-up 
prizes of £35 Felflran vouchers. Solutions by Wednesday August 3. marked 
Crossword 8,513 on the envelope, to the Financial Times. Number One 
Southwark Bridge, London SEl 9HL. Solution an Saturday August & 



Nam*. 

Adcfcea 


ACROSS 
1 Finch is caught in 
hide — (6) 

4 bird given bad shock 

after dark 


9 Nothing exists but Mediterra- 
nean oil-producers! (6) 

10 Handle even part so as to 
make a profi t (8) 

12 Great book as 1 see it (4) 

13 Unknown number attending 
show can be dangerous (5) 

14 Wheel-betting socially accept- 
able? (4) 

17 Is French province intended, 
say, to be split? (12) 

20 Immense cost, manm-ini man- 
agement? (12) 

23 Other people's money no lon- 
ger genome (4> 

24 Corn sovereign? (5) 

25 Abandoned side (4) 

28 Dance oT horse in desert? (8) 

29 Ctrl out oT breath (6) 

30 Counter-statement, could you 
say. heard outside normal 
hours? (8) 

31 Fellow with paper round cold 
of course! (6) 

Solution 8J512 


DOWN 

1 One in Oxford will hold the 
form (8) 

2 Fellow hearty? (8) 

3 American composer using up 
only half of records? (4) 

5 Active number? (12) 

0 Knife-handle hard towards 
the back (4) 

7 Old car trim embraced by 
Gatsby? (6) 

8 Material of several fc-inds used 
by Sarony in variety? (6) 

11 Warning given when landing - 
— ’’s out of order? (6,6) 


16 University in action' In the 
spring? (5) 

16 The other side of Yemen pos- 
sibly 15) 

18 One is on tbe bottle when sal- 
ary-celling is indicated (5-3) 

19 Apartment people or Derby, 
for example (4.4) 

21 Credit is doubly needed in 
such an emergency (6) 

22 Coiffure for Rhoda, about one, 

possibly? (6) 

26 Sack Lincoln Square (4) 

27 River erosion (4) 

Solution 8,501 



□ana □amQamnnn] 
□ □ a a □ a 
naaciQBiiBUQ □□□□ 

□ n b a b q to 

□BQBQB aHHnHQQE 
QaaaBBBQ 
naBBnBEB □bbedb 

□ □ □ a □ ej □ 

□BaQBQBB DQQB0B 


WINNERS 8901; W.C. 



Riddlesden. W. Yorkshire; P. Brown, 

Denote, ISyjekenh^ Middlesex; 

Inverness; a Scott, St Julien de Crempse, FranoT wirnam. 





XX WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 23AJU LY 24 1994 




Private View/ Christian Tyler 

Heir to the sins 
of the fatherland 


L ast week he was in 
Paris with Chancellor 
Kohl to celebrate Bas- 
tille Day and watch 
Panzer tanks crawl 
down the Champs Elys&es for the 
first time since the Nazi occupation 
of the French capital. 

This week he was star speaker in 
London at the German embassy’s 
50th anniversary “commemoration" 
of the bomb plot against Hitler. 

Manfred Rommel is much in 
demand these days. As mayor of 
Stuttgart he represents the prosper- 
ous liberal democracy of post-war 
Germany. As son of Field Marshal 
Erwin Rommel, the Desert Fox, he 
is a reminder that even the Nazi 
dictatorship had its decent face. As 
peacemaker he has struck up a 
friendship with David. Viscount 
Montgomery, son of his father's 
conqueror at Alamem. 

Manfred was 15 and at home with 
his father when two ggnprah came 
from Hitler in October, 1944, to offer 
the field marshal the opportunity of 
committing suicide by poison. 

The Desert Fox accepted but not 
because he was part of the bomb 
plot Although he knew some of the 
conspirators, said his son, he never 
believed they would - or could - 
act. He took the poison because 
from the end of 1943 be had been 
telling Hitler the war was lost, and 
Hitler discovered Rommel was pre- 
pared to surrender to the Allies if 
they were victorious in France. 

I asked his son if he felt absolved 
by his father’s sacrifice. 

“No. I don’t want to say that 
because my father died by order of 
Hitler he's a good German and the 
others who did not die by order 
were bad Germans. That would be 
wrong. The people in general were 
not responsible. A simple German, 
what should he do? Or even a colo- 
nel or divisional commander? He 
was almost helpless." 

He could resign his command, I 
said. 

“Of course. On the other hand he 
had responsibility for his troops, for 
others.” 

What about your father? 

“He lived at a time when it was 
very difficult for a German to 


remain honest Today. ft's really dif- 
ficult not to be honest" 

Do you feel you should apologise 
for him? 

“Yes, of course, I try to explain. I 
have to admit that in Germany we 
had anti-semitism and that Jews 
were expropriated, ill-treated, dis- 
criminated against No doubt about 
that If it was not accepted it was 
tolerated. 

“And the Army said It’s not our 
problem. It’s up to the politicians.’ 
And that was wrong of course. Of 
course 1 cannot deny that my father 
was fighting for Hitler and was also 
made field marshal by Hitler, not by 
Emperor William H. He also had a 
special political responsibility." 

Are you ashamed of his attitude, 
or proud of him as a soldier? 


Manfred Rommel 
talks of war, Hitler , 
his father , and 
forgiveness 


Tm proud of him as a person. 
Because I don't know what I would 
have done in his place. I would be 
ashamed of my father if I were abso- 
lutely certain that I in his place 
would have followed a better way. 

“I see hhn in his time. He tried in 
Africa to be fair - as far as war can 
be fair. He never pursued any Jew- 
ish people in Africa and did not 
carry out orders from Hitler.” He 
ignored, for example, an order to 
till prisoners of the British Eighth 
Army who had been German citi- 
zens. 

What about yourself? Do you feel 
at all ashamed that you were in the 
Hitler Youth and aspired to the SS? 

“No, I don’t feel ashamed I was in 
file (fitter Youth but I feel ashamed 
and surprised that there was so lit- 
tle concern in Germany when 
minorities were persecuted, and 
people did not feel solidarity but 
were attracted by propaganda and 
said ‘It’s none of our business. 1 

“Many thing s they didn’t know, 
but many things they did know. 
This is a lesson we have to team 


about dictatorship. 

"And of course 1 feel ashamed 
that in the name of Germany mil- 
lions of people were killed, that we 
went to war against Poland and 
Russia and so on.” 

Manfred Rommel ended the war 
as an anti-aircraft gunner, a 16-year- 
old Lufamffenaberhelfer. Now 65, he 
has been Christian Democrat mayor 
of Stuttgart, the capital of Baden- 
Wurttemberg. for 20 years. He said 
he has tried to work simultaneously 
for the integration and cultural pro- 
tection of the quarter of the city’s 
population who are wrm .naHnna Ir- 
G reeks, Yugoslavs and Turks. 

“What we have to learn from the 
time of Hitter is to fight for the 
interests of minorities and see them 
as part of the whole society.” 

Do you feel a special responsibil- 
ity because of Hitler's theories? 

“Not because of Hitler. I am clean 
of Hitler. I feel a special responsibil- 
ity because I think it Is necessary 
for the future of Europe - especially 
for a continental country with 
many frontiers - to be open to 
minorities.” 

He also thinks ft wrong to ignore 
- as Chancellor Kohl Is being 
accused of doing - communist sur- 
vivors of the German resistance 
movement. “In Stuttgart we have 
many communist families who have 
lost grandparents in the concentra- 
tion camps. 1 think it would not be 
decent to e xclude them Their idea 
was not to support S talin, but to 
fight Hitler.” 

Rommel has also been preaching 
the virtues of forgiveness to col- 
leagues in former east Germany. 
There the victims of communist 
exploitation find his m ess agp hard 
to swallow, he said. “But without 
the tolerance shown by the German 
resistance to those who fought with 
Hitler. German society after the war 
would have exploded." 

Do you see dangers in the neo- 
Nazi movement or even in Ger- 
many’s economic success? Will Ger- 
many become again dominant and 
assertive in Europe? 

“No, I don’t think so. There is no 
danger from the Nazi movement 
We have some criminals who attack 
asylum-seekers, and so on. This is 



true. But this is no danger for 
democracy. We will put them in 
prison. As for ambition, 1 don’t 
think so. Germany is almost suffer- 
ing from the fact that it has become 
bigger. It may want everything else, 
but not to be dominant in Europe.” 

Does not unity itself foster a kind 
of nationalism that could be danger- 
ous one day? 

“1 don’t think so. Nationalism is 
almost a tittle bit discriminated 
against because the elder genera- 
tion is full of distrust 

“And we have a lot of problems. It 
is not easy to incorporate a former 
communist country in a market 


economy and free democracy. The 
east saw us as providing dish- 
washers and red wine and fruit and 
holidays in Spain. But now they see 
us as we really are and they are 
very much disappointed by the lack 
of solidarity." 

Your generation, I said, is old 
enough to remember the horrors 
but too young to have participated 
in them. Are you afraid that the 
younger generation will not team 
the lessons? 

“I would ask: what are the les- 
sons? Some lessons are not learned. 
But never again will there be 
National Socialism or anything like 


that in Germany. Never. 

“What is dangerous is that many 
people don’t see the values of 
democracy. They don’t accept our 
kind of democracy or say it’s not 
good enough for them. This is dan- 
gerous because we will have to face 
many economic and social problems 
if we produce more and more with 
1 gay and less manpower. We need 
democracy also in critical times ” 

We have another year of anniver- 
saries before the end of the war in 
Europe. I said. WQ1 it be a relief 
when it's over? 

“Yes, it will be a relief. We won't 
stop talking about National Social- 


ism and the Third Reich because 
it's really important to draw the 
lesson from them. But l hope that 
there will be less talk about war.” 

Are you tired of the responsibility 
of being your father's son? 

“No, Tm not tired. I'm not only 
my father's son. I have made a 
career in administration. In pcditics. 
Of course l always felt obliged to 
argue for my father. 

“We have to face the future but 
the past Is Important to learn from. 
We cannot change it But we can 
interpret if 

The bomb plot Page IX 


iCriJ 


I am still trying to 
dream up a new 
world game. I have 
been at work on it 
for a fortnight ever 
since Miss Lee, my 
executive assistant 
declared that soccer 
was hideous - “fust 
groups of hairy men 
rolling on the ground” - and that 
virtually all sports, especially those 
with balls, were fundamentally 
silly. 

She bad read that the man who 
founded Nike - she couldn't 
remember his name, but was sure 
he had a beard - had set hims elf 
the target or Inventing a new game. 
The more I pondered, the firmer 
grew my belief that Miss Lee and 
this man were on to a good thing. 
Almost all the games we play are 
unbelievably silly. 

Golf, for example, is one of the 
stupidest activities devised. Yon 
manufacture a ridiculously small 



Continued from Page I 


their own notes, which are accepted 
in English supermarkets if not in 
corner shops. Yet these are not 
quite what Hayek envisaged: they 
are fully backed by cash deposits 
with the Bank of England. The Old 
Lady actually prints notes and her 
officials in Threadneedle Street sol- 
emnly put them in separate boxes 
marked Bank of Scotland and Royal 
Bank of Scotland. 

In Hayek's banking market, in 
contrast everyone would have to 
make Judgments about individual 
banks’ credit-worthiness. Since 
commercial banks’ reserves would 
no longer be pooled centrally, they 
would have to have more liquid bal- 
ance sheets and stand ready to con- 
vert notes and deposits into real 
assets, such as gold. 

The strength of the case for “free 
hanking * 1 - as the abolitionist cause 
is known, is the poor performance 
of the existing monetary authorities 
in delivering price and financial sta- 
bility. The fact that the central 
bankers' powers are centralised 
means that they are open to manip- 
ulation by politicians for electoral 
ends, which introduces a bias 
towards inflation. 

The human and financial 
resources that central banks pour 
into supervising commercial banks 
appear to deliver precious little. 
Despite all the effort, the English- 
speaking economies have experi- 
enced one banking crisis per eco- 
nomic cycle since the mid-1970s, 
running from the property crash in 
1974, to the Third World debt disas- 
ter in 1982. to the property and junk 
bond fiasco of the late 1980s, and 
the simultaneous Savings and 
Loans debacle. Taxpayers have 
gnrfprf up footing a multi-billion dol- 
lar bill. 

The free bankers argue, entirely 
plausibly, that the existence of the 
central bank as the backstop of the 
system is a cause of this instab ility. 
Commercial bankers are less risk- 
averse when they know there is a 
lender of last resort. Depositors 
impftca no constraint on bankers’ 
activities if their deposits are statu- 


A cut-throat competition 


Michael Thompson-Noel 


Kali j> n d dig an extremely small 
hole - in fact 18 tiny holes, sepa- 
rated by thousands of yards of bufl- 
dozered landscape - and then you 
build a club-house and sit back and 
watch as fat, smog people wearing 
lilac sweaters and enjoying the 
complacency of prosperous middle 
age waddle op and down your golf 
course, attempting to thwack this 
ball over a pile of displaced peas- 
antry and a pyre of slaughtered 
wildlife, into this tiny hole. 

They even keep score, and then 
repair to the clubhouse where they 
fill their throats with gin and talk 
about their incomes and bow 
they’re changing the Jag and isn’t 
Bambl pitiful but it won’t mean a 


thing by the time of file general 
election because people aren’t stu- 
pid and wOl still vote for Major 
who is starting to improve bis act. 

Study the sports pages of our 
weightiest organs and yon will see 
that almost every type of game that 
could be invented has been 
invented. The Daily Telegraph this 
week even devoted space to the 
lacrosse World Cup, which is tak- 
ing place in England and has 
attracted, thriinngly, a team of Iro- 
quois who are said to stand, 
together with four other teams, 
“between England and glory". 

Miss Lee is right; we need a fresh 
approach. 

One that attracts me is that old 


HAWKS 

— & — 

HANDSAWS 


sci-fi game. Assassin!, in which a 
trained killer arrives in some meg- 
alopolis and hunts down a human 
quarry. The event is televised all 
day. Tension mounts unbearably. 
As the hunt progresses, yon do 
rather wonder if the person the 
killer Is seeking could be your head 
of department or even, conceivably, 
you. 


The denouement is covered on 
the 6pm news. If the quarry 
escapes, he (or she) is awarded 
£5m. If not. he (or she) dies, right 
there in prime-time, garrotted, 
shall we say, or vaporised by laser- 
gun. 

The victim could be quite ordi- 
nary, or someone extremely promi- 
nent, such as the micro-brained 
individual who permits Queen Eliz- 
abeth II to stage garden parties at 
Buckingham Palace in the middle 
of the working week. 

This summer, my progress home 
from work in my six-year-old Rover 
has been brought to a halt time and 
time again by the tumult and 
scrummaging occasioned in the 


Mall and along Constitution Hill by 
hordes of the socially mobile leav- 
ing Buck House at the end of one of 
these parties. 

It happened again on Tuesday. 
Traffic tn central London ground to 
a complete stop - there was 
already a heatwave raging - as a 
motley crowd of party-goers swept 
from Buckingham Palace and mil- 
led about outside. I turned off my 
engine and surveyed these appall- 
ing people. 

A lot of them seemed to be from 
parts of Britain that we hoped we 
had heard the last of - places 
where ships or cars or other large 
metal objects used to he 
manufactured but which are now 


reverting to primeval forest, 
thanks to the ministrations of the 
Tories, or have been raxed and then 
manicured into back-to-back golf 


courses. 

As well as people from the 
regions, the swell of party-goers in - 
the Mall on Tuesday included . 
numerous serving officers from our 
great armed forces - unclear -sm:-.™; * .v •. 
submarine captains, cavalry and 
artillery officers, leaders of - 
pike-units from the Tower of- 
London and a lieutenant in cfaaigo •- 
of a detachment of sad-faced men- 1 ' 
shouldering arquebuses. arrU .. 

I think Assassin? would be a good 
game. But I am sure it can be ', 
improved on. By next week I hope 
to have thought of a better one. If 1. .. 

fail, I will stage a competition to '■ 
see whether readers can suggest s 4ur anuu ,.. 
new world game that would satisfy 
Mfaa; Lee and the man who founded - 
Nike. A prize will be offered - . 

something really glamorous. Tune t. ... 

In next week. h-,. "... 


m 5 ! 


The battling Old Lady 


tortly insured. 

The snag with free banking is the 
assertion that it would lead to a 
more stable system. Anyone who 
believes that knows nothing of the 
behavioural pressures on bankers 
and will believe anything. History 
suggests that In periods of free 
banking, instability was endemic 
and that the social costs of banking 
panics were high. 

This is because banking is a fun- 
damentally unstab le activity. Ranks 
exist to satisfy demands that finan- 
cial markets cannot meet. Indeed, 
when the Bank of England was 
founded, the organised markets 
were restricted to government debt 
and the paper of a few chartered 
companies. Because bank loans are 
not quoted, they are difficult to 
value and to turn into cash. More- 
over. bankers inevitably have less 
information about customers than 
the customers themselves. 

Yet the banks’ deposits are for 
fixed amounts and can be with- 
drawn on a first-come-first-served 
basis. Depositors are also short of 
detailed information about the peo- 
ple to whom they have entrusted 
their money. It thus takes only a 
niggling doubt on the part of deposi- 
tors about adverse changes in the 
value of a bank’s assets to spark off 
a run. 

It follows that banks are different 
from ordinary co mpanies , and wide- 
spread bank failures can lead to a 
vicious spiral of default and falling 
prices, as in the US in the 1930s, 
when a third of all banks collapsed 
and the Federal Reserve failed to 
prevent a savage deflation. So the 
risks In any experiment In free 
banking are high 

There must be a possibility that 
In the first free banking panic 
money would fly to the biggest and 
safest bank, which In the UK would 
probably end up being called the 
Bank of England, if it was not the 
Bank of England already. In other 
words, we might find ourselves 


going through the painful process of 
rediscovering the convenience of 
central banking, while being occa- 
sionally rebuffed In shops and pubs 
over our choice of notes. 

This does not sound practical. 
Bigger and cruder threats to the 
central bankers' status probably 
come from elsewhere. For a start, 
the bond markets’ power and pres- 
tige are in the ascendant The fla- 
vour Is well conveyed in The 
Agenda. Bob Woodward’s new book 
on the Clinton administration. 



The sleuth of Watergate and the 
Washington Post writes, in a refer- 
ence to Democratic political consul- 
tant James Carville: “That day the 
30-year bond rate dropped another 
U per cent Carville was beginning 
to understand real power. He told 
the Wall Street Journal T used to 
think if there was reincarnation, I 
wanted to come hack as the presi- 
dent or the pope or a 400 baseball 
hitter. But now I want to come back 
as the bond market You can intimi- 
date everybody’." 

The bond market is certainly 
more intimidating than Alan Green- 
span of the US Fad. In the face of 
qui c k eni n g economic recovery and 
increasing inflationary potential, 
bond yields started to rise as early 


as last October, while the Fed 
waited until this February before 
tightening. And in Europe bond 
yields have risen to levels that 
impose a swingeing penalty on 
countries such as Spain and Italy, 
where budget deficits and the out- 
standing stock of government debt 
are deemed unduly large. 

Because long-term interest rates 
have a disproportionate influence 
on economic activity in continental 
Europe, bond markets may even nip 
economic recovery there in the bud. 
They have already put a damper on 
the British housing market by forc- 
ing increases in the fixed rates of 
Interest offered to borrowers by 


building societies and banks. 

In the new liberalised global mar- 
ket place, the central bankers' task 
Is thus doublfredged. They must ask 
not only whether economies are 
overheating, with inflationary con- 
sequences, but whether bond mar- 
kets are overshooting to the point of 
threatening serious deflation. Per- 
haps the bond market over-reaction 
Is the late 20th century equivalent 
of a free banking panic. 

In the smaller and more open 
economies, however, the central 
h ank ers 1 room for manoeuvre is 
somewhat curtailed. Sovereignty 
may still have a strong national 
dimension for the Americans, the 
Germans and the Japanese, but for 
most others - pace Britain’s Euro- 
sceptics - it is overshadowed, in the 
realm of monetary affairs, by the 
actions of the Big Three and the 
bond markets. 

All <of which brings us to what, 
for the Bank of England, could ren- 
der any future anniversary a nuga- 
tory affair: European economic and 
monetary union. This would deliver 
10 ^ ^dy a spurious form of 
Independence from the British gov- 
ernment, while the remaining abil- 
tp Influence monetary affairs 
w^ em? d to a European cen- 
HJ™, ~ ra Pe. in fact, by any 
other name, since the European 



bank’s decisions will be made on 
the basis of Europe-wide economic 
conditions, without much regard for 
domestic economic shocks. 

The good news is that the pro- 
posed European bank, unlike the 
Bank of England, is not being set up 
to finance wars. The tad news is 
that the relevant protocol of the 
Maastricht Treaty gives the new 
European central tanking system a 
greater degree of independence than 
any other central h ank, while offer- 
ing less accountability to the Euro- 
pean parliament than that 
demanded of any other central 
bank. Even the notoriously indepen- 
dent Bundesbank is required to 
account more seriously to the Ger- 
man parliament 

Such a transfer of power to for- 
eign hands would not be without 
precedent in Britain. After all, 
England's disaffection with Janies n 
and his alien religion prompted the 
English to swap their flawed sover- 
eign for William of Orange. Yet the 
constitution of tbe proposed Euro- 
pean central bank - pace the Euro- 
enthusiasts - is a recipe to make 
the bond markets look tame. At 
least William of Orange deigned to 
cross the Channel and submitted 
his spending plans to parliament. 

Admittedly, Kenneth Clarke, the 
UK chancellor, argues that mone- 
tary union is not on the agenda. 
James no doubt felt a similar insou- 
ciance on the eve of his premature 
ejection from the throne. But it is 
hard to believe that a hard core of 
European countries win not move 
towards monetary union. Will the 
British establishment have the 
nerve to stay out? Will the Old Lady 
end up running a sub-post office In 
the new European banking system? 

This is no place to re-run tbe 
Maastricht debate. But for those 
who, like the 18th century pamphle- 
teer, wish to air Some Consider- 
ations against the Continuance of 
the Bank of England, history has a 
lesson. If nothing else, she is a dura- 
ble old bird. Do not write off the 
quartercentenary yet 


■ An FT Bank of England survey 
will be published on July 27 


not