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A journey 
to the heart 
of Zionism 

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^T&epossessed 


Pyfi&nid scheme shatters 


niiri's TV fantasies 

Russian nightmare, Pafio 9 


FINANCIAL TIMES 


^©usioess ''Newspaper 


WEEKEND .JULY 30/ JULY 31 1 994 


Lloyd’s likely to 
scrap three-year 
accounting 


Lloyd’s of London may remove the requirement for 
the insurance market's underwriting syndicates to 
report their results over a three-year period. The 
move should lead to quicker release of profits to 
both corporate capital and Names, the individuals 
whose assets support the market 
The practice of three-year accounting is rooted in 
the origins of Lloyd’s, which derived its business 
from insuring trading ships on their voyages 
around the world, which usually took three years. 
Page 6 


KJnnoek becomes European Commissioner 

Former UK Labour party 
leader Neil Kmztock 
(left), whose appointment 
as a British, member of 
the European Commis- 
sion was confirmed yes- 
terday. is to seek to over- 
turn the opt-out secured 
by prime mini s ter John 
Major from the regula- 
tions that can be 
imposed on employers 
from Brussels. Mr Sin- 
nock’s wife, Glenys, was elected to the European 
parliament last month. Page S 



Rise In Japanese jobless: Figures showing an 
increase in Japanese unemployment and a sharp 
fall in the inflation rate provided Further evidence 
of the weakness of the country’s economy. Page 3 

Two shot dead at abortion clinic: Two 

people, one a doctor, were shot dead outside a Flo- 
rida abortion clinic. An anti-abortion protester was 
arrested 


Moscow attacks Chechnya leaden The 

Russian government accused Dzhokar Dudayev, 
leader of the rebel region of Chechnya, of destabilis- 
ing the whole of north Caucasus and called on the 
Chechen people to topple him. 


Terrorist targets Identified last yean A UK 

security report identifying buildings including Lon- 
don’s Israeli embassy, which was bombed this 
week, as potential targets for car-bomb attacks was 
produced at the end of last year. Page 7 

40 hurt In Ulster mortar attack: Forty people, 
including 38 civilians, were hurt when terrorists 
Bred three mortar bombs at a police station in the 
centre of Newry, Co Down. 


Spanish general killed: An army general, his 
driver and a civilian were killed when a car bomb, 
believed to be the work of Eta Basque separatists, 
exploded in central Madrid. 


Date set for Simpson trial: A Los Angeles 
judge set September 20 as the trial date for foot- 
baller O.J. Simpson, who has pleaded not guilty to 
the murders of his ex-wife and her male fiiend. 


Higher retail Income lifts BAA profits: BAA, 

the former British Airports Authority, raised first- 
quarter pre-tax profits by 11 per cent to £lllm. 
helped by rapidly increasing retail income. Page 10 

Credit Suisse falls 27%: Swiss bank Credit 
Suisse, flagship of the CS Holding financial services 
group, reported a 27 per cent fall in interim pre-tax 
profits to SFrl.76bn <SL3bn), caused partly by a 
slump in international stock and band markets. 
Page 11 

Copper mine to be world’s biggest: The 

Escondida copper mine in Chile is to be expanded at 
a cost of $520m to make it the world’s biggest by 
mid-1996. Page 11 

Sapporo Beer ahead 41%: Interim pre-tax 
profits at Japanese brewer Sapporo Beer rose 41.2 
per cent from a year earlier to Y6.9bn (166.4m), due 
to a rise in demand. Page 11 

First UK lottery draw In November: The UK's 
first National Lottery draw- will take place live on 
BBC Television on November 19. less than six 
months after the Camelot consortium was chosen 
as the lottery's operator. Camelot yesterday 
unveiled its logo (above) - a smiling hand with 
crossed fingers. Page 4 

Big rise in purchase prices: The prices paid 
by manufacturers for materials are rising sharply, 
according to the latest purchasing managers’ index, 
increasing fears that inflation may be set to acceler- 
ate. Page 7 

Turners stolen: Two paintings by English 
master William Turner were stolen from a Frank- 
furt gallery. The pictures, valued at £10m ($ 15.5m) 
each, were on loan from London’s Tate Gallery. 


Companies In this Issue 


As ma 

11 John Lusty 

10 

BAA 

10 Klelmvort High Inc 

10 

BHP 

11 Uoyds Bank 

10 

Beacon Inv Trust 

10 Low (Wm> 

10 

Boverfey 

10 MonKfo 

10 

Ctwm Waste ManTnent 

11 Morrison (Wm) 

10 

Credit Suisse 

11 North of England BS 

10 

Cred'st^t-Sankv'm 

11 Hanson (Wm) 

10 

Dale Etectnc Inti 

10 SCI 

10 

Eicctnc & General 

10 Salnsbury (JJ 

10 

Evans Halshaw 

10 Sapporo Beer 

11 

Fitch 

10 TI 

10 

Formlnster 

10 TT 

10 

Foundation Health 

11 Tesca 

10 

Great Southern 

10 Tottenham Hotspur 

10 

Green Property 

10 WMX Technologies 

11 

Groups Bull 

11 Whitbread 

10 

Harrisons Crosfield 

10 Wite (WD X HO) 

10 

Int'group Healthcare 

11 Zetlere 

10 


For customer service and 
other general enquiries call: 


Frankfurt 
(69) 15685150 




>- 7-s : * 


iliSSllllS! 


Bank’s market dealings spark expectations of half-point increase 


Anxiety over rate rise grows 


By Phifip Coggan 
and Philip Gawith 


Financial markets yesterday 
signalled their expectation of an 
imminent rise in UK interest 


rates. This was based on Bank of 
England dealings in the money 


markets which persuaded many 
traders that a half percentage 
point increase was likely. 

Although tfrfl markets found 
the Bank’s dealings confusing, 
anxiety about a rise in rates 
prompted selling in the futures 
market. By the close last night, 
short sterling; the futures mar- 
ket’s medium for speculating on 
interest rate changes, pointed to 
short-term rates of over 6 per 
cent by September compared 
with curr en t base rates at &25 
per cent 

The prospect of higher rates 
bolstered the pound which fin- 
ished in London at DM2.4413. 
more than 2 pfennigs up on 
Thursday's (dose of DM2.4195. 

The Bank yesterday accepted 


bids for Treasury bills - 
short-term debt issued by the 
government - at rates of up to 
5.75 per cent, half a point above 
current base rates. That was 
Interpreted by some traders as a 
sign that base rates would rise 
shortly, either on Monday morn- 
ing or on Tuesday when tire 
Bank publishes its quarterly 
inflation report. 

In its daily operations, how- 
ever, the Bank dealt at 
unchanged rates, before and after 
the Treasury hill auction. These 
money market activities are the 
Bazik’s traditional method of sig- 
nalling its desired level of base 
rates. 

While some economists now 
expect base rates to rise by half a 
point next week, others thought 
the Bank did not intend to 
increase rates and had merely 
miscalculated the market's reac- 
tion. to the Treasury bill 

annftnnrgmgnt In the COnfUSiOH, 
many talked of “mismanage- 
ment” by the Bank. 


UK Interest rates, present and future 


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The result of yesterday's auc- 
tion is that the Bazik is paying 
more to borrow money than it is 
receiving for lending it a posi- 
tion which cannot last for an 
extended period. 

Markets were already jittery 
about a possible base rate rise, 
with evidence of inflationary 
pressure in the Confederation of 
British Industry’s quarterly sur- 
vey, released on Tuesday, and 
in the purchasing managers’ 


index, announced yesterday. 

Mr Kenneth Clarke, the chan- 
cellor, and Mr Eddie George, the 
Bank’s governor, held their 
monthly monetary meeting on 
Thursday. Interest rate decisions 
are taken at the monthly meet- 
ings a ltho u gh tiie timing of the 
change is left to the Bank. Specu- 
lation about rate changes is 
accordingly at its peak in the 
days following the meeting. 

Trade in short sterling reached 


more than 210,000 contracts, the 
highest volume this year. The 
September contract lost 33 basis 
points to close at 93.95. 

The FT-SE IDO index fell by 26.2 
points at one stage before closing 
13.3 points down on the day at 
3082.6. 


Big increase in purchase index. 

Page 7 
Currencies, Page 13 
Lex, Page 24 



Silvio Berlusconi (pictured) announced the creation of a special commission to distance his business 
interests from his role as Italian premier. The move came after Mr Berlusconi’s younger brother, Paolo, 
surrendered to Milan magistrates to answer charges of paying bribes to the financial poBce Page 24 


Lloyds up 21% at half-year 
but rivalry fears hit shares 


By John Gapper, 
Banking Editor 


Shares in Lloyds Bank fell 
sharply yesterday despite a 21 
per cent rise in half-year pre-tax 
profits to £605m. The marking 
down of the stock reflects con- 
cern among investors that clear- 
ing banks are starting to compete 
for business by cutting loan mar , 
gins and charges. 

Lloyds' results reinforced fears 
that banks are building up more 
capital than is needed to meet 
slack Hnpnanri for loans. Analysts 
said banks were likely to start 
reducing charges to attract busi- 
ness in an overcrowded market 

Lloyds' shares fell by I8p to 
544p. Other bank shares declined. 
Lloyds raised its interim dividend 
by 14 per cent to 7.5p, but the 


increase was not as great as 
some analysts had predicted, 
given the bazik’s generation of 
capital 

Sir Bobin Ibbs, Lloyds' chair- 
man, said the bank was confident 
it would succeed with its £L8bn 
agreed bid for Cheltenham & 
Gloucester Building Society. C&G 
is expected to announce revised 
terms in mid-August for sharing 
the cash among its members. 

Sir Robin emphasised that the 
C&G purchase would not be the 
last acquisition considered by 
Lloyds. “Just because we are 
moving towards a satisfactory 
conclusion with C&G does not 
mean we are pulling down the 
shutters,” he said. 

He said Lloyds would not 
impose charges on current 
accounts in credit, although the 


decision was not a consequence 
of the build-up. If one is 
virtuous to begin with, one does 
not need even more temptation 
to be virtuous," he said. 

Weak loan demand and flat 
birpirip from charges meant reve- 
nue grew only 5 per cent to 
£1.92bn, against £l.83bn In the 
first half of 1983. 

But the bank's trading surplus 
rose by 13 per cent to £7l3m» 
against £632m, because costs 
were held down. 

Lloyds gained from the 
improvement in credit quality 
among UK companies in the first 
half of the year as the effects of 


Continued on Page 24 
Future worries affect present. 
Page 10 
Lex, Page 24 


STOCK MARKET INDICES 


FT-SE 100: 3,081* 

Yield 4*0° 

FT-SE EutJtracfc 100. 1,387-8 
FT-SE-A Afl-®W» .. 1.64&74 

MWtel 20^4859 

New York: lunchtime 
Dow Jones tnd Ave .3,751.58 
S&P Composite — 


(-1X3) 


(*15.84) 

(-0-3 *> 

(+20184) 


(+30.75) 

(+4.65) 


LONDON MONEY 

3-mo (rrtartsmk -5&% 


<5AN) 


LMe long gffi fur .. Sop 101% fSePlOl£) 


■ US LUNCHTIME RATES 

■ STERtma 

FodensJ Funds: 4A* 

Non York lunchtime: 

3-mo Treas Bfis: Yld 4J368% 

S 1 -52825 

Long Bond ...88H 

London: 

YWd - . .._ 7.388% 

S 1-5366 (1.5310) 

■ NORTH SEA OIL (Argus) 

DM 24413 (2.4195) 

Brent 15-day (Sep) — 818^1 Ci8.1i) 

FFr 8A408 (&2605) 


SFr ZO075 (2JJ481) 

■ QOLO 

Naur Yoric Coma* (Aug) 

Y 158824 (151.684) 

$383.0 (384.8) 

£ Index 704 (788) 

London S388A (387 -3) 



■ DOLLAR 

New York lunchtime: 
DM 1.58725 

FFr 3.4196 
SFr 1-34376 

Y 100.10 
London: 

DM 1.5888 (1.5785) 
FFr S4283 (5 .3825] 
SFr ' 1.5456 (1-337) 

Y 100175 (90.02) 

S Index S3L8 (63.8) 
Tokyo Y 9003 


SESBiSE 


frUtt na cun d New* 


UCKewO-. 


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Mantoihe Ne«. 
CompaalM 


FTWoWAiamrts 21 

Foreign Exchanges '3 

Goto Uartgsta 12 


Money Maritas . 


.13 


Recent heues. 


LX. 


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London SE__ 


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Share Mormstun 2L23 


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HKVII. Hu7>jor, 

S' Imu RuoM. Sweden SMI 6. 00 S-BwOrtt SF-130. 7»*on MTSSS. ’Itaiona 


DKriiOC: Eorpt EC5CG FdM FMOL Fmce FFifc50: Owmsny DM850: Grans CWHk Hens 

• - - - - --sa MaleyM RM44B IMta LmOfC. Moroc c o Dtn Wtt 

SM* Rep KELSO. SOUS! MHGX RIZOCC Spoil Ptfl225; 


BMSQ. Tutiao Dull. SCO Tur**, L 3333?. i&£ I 


Tribunal critical 
of high pay-outs 
to forces mothers 


By Usa Wood, 
Labour Staff 


A number of large pay-outs to 
former servicewomen who were 
sacked after they became preg- 
nant were “manifestly excessive” 
the Employment Appeals Tribu- 
nal ruled yesterday. 

However, the appeals tribunal 
said most of the seven ex-service- 
women whose cases were taken 
to appeal by the Ministry of 
Defence could keep the bulk of 
their compensation because of 
the way the Ministry of Defence 
presented its case. Two women 
will have to return to industrial 
tribunals for reassessments. 

Mr Justice M orison, tribunal 
chairman, said: “The large 
awards, running into many tens 
of thousands of pounds, seem 
quite out of proportion to the 
wrong done." 

The MoD, which welcomed yes- 
terday’s decision, has already 
paid out £16m in settlements 


since 1990 when the European 
Court of Justice ruled that the 
armed forces were not exempt 
from EC legislation making it 
illegal to dismiss a woman 
because she was pregnant. 

The ministry said at the time 
that pregnant women dismissed 
since 1978. when the UK govern- 
ment was obliged to have imple- 
mented an EU equal treatment 
directive, were entitled to com- 
pensation. Until today's ruling it 
had claimed it laced bills of up to 
£100m if the principle of large 
awards had been upheld. 

The level of future awards to 
ex-servicewomen dismissed 
because of pregnancy is now 
likely to be much lower for the 
1,700 outstanding claims. 

The seven test cases involved 
women who lost their jobs 
between 1978 and 1990 and who 
received awards of up to £173,000. 
The awards were made after the 


Continued on Page 24 


Russia’s 
teetering 
MMM 
slashes 
fund price 


By John Lloyd in Moscow 


Russia's MMM share fur 
teetered on the edge of oblivu 
yesterday as it slashed ti 
redemption price of its shar< 
from the last quote of Rbsll5,0 
(£37) to Rbsi.000, sending inv* 
tors streaming into Moscow 
commodities exchange m despt 
ate attempts to sell their paper 

In the early evening nn es 
mated 25,000 angry shareholde 
gathered round MMM's he a 
quarters in a dowdy Moscow sc 
urb. They blocked oil the mul 
lane Varshavskoye Chaussee ai 
attacked the policemen guardii 
the building. Riot police were 
reserve in and around the buil 
ing. but were not deployed. 

Mr Sergei Mavrodi, MMM’s el 
sive head, issued a written stal 
ment in the early afternoon so 
ing the price cut was tempera 
and that “in two or three mont 
the price will return 
RbslOO.OOO or more. We are su 
ply taking economic measures 
force shareholders to wait ai 
hold on to the shores for two 
three months”. 

Mr Mavrodi, in the anti-autb< 
itarian style he has adopted 
recent days, blamed the gom 
ment for the plight of the fui 
and the 10 m citizens he claims 
shareholders (Other estimates p 
the number at 2m-5m>. 

The Russian government h 
recently questioned MMM's si 
vency. Mr Mavrodi said: “We* 
been stopped on the eve of 
super breakthrough, after whi 
Russia could have become t 
richest country in the world a 
Russians - MMM shareholders 
wealthy people.” 

He said that allegations ma 
by the finance ministry and t 
inspectorate that MMM was 
classic “pyramid scheme”, 
which the purchases of nc 
shareholders fund the profits 
the old until expansion stop 
were “absolutely false". 

The crowds around the MM 
headquarters were general 
phlegmatic before the evenb 
outburst. Most of their ang 
appeared to be directed more 
the government than at MM1 


Continued on Page : 
The Possessed, Page 


THE FINANCIAL TIMES LIMITED 1994 No 32,432 Week No 30 


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FINANCIAL TIMES WEEKEND JULY 30/JULY 31 19 


★ 


NEWS: INTERNATIONAL 


Stalin’s troops looked on with folded arms as 20,000 Poles fought to the death 

Heroism and wickedness in Warsaw 



An exhausted Polish combatant in the middle of the failed uprising against the Nazis. Around 20,000 Polish combatants 
were killed and 225,000 civ ilians- Some 550,000 survivors were sent to Pruskow concentration camp. 


F ew episodes of the second 
World War revealed so clearly 
the depths of H uman wicked- 
ness and the heights of personal and 
collective heroism as the Warsaw ris- 
ing, whose 50th anniversary will be 
commemorated this weekend in the 
Polish capital 

The rising, 83 days of increasingly 
desperate street fighting between 
150,000 ill-armed volunteers of the Pol- 
ish Home Army (the AK or Armia 
Krajowa) and a pitiless Nazi annihila- 
tion force, took place while Stalin, 
whose soldiers were encamped just 
across the River Vistula, looked on 
with folded arms, and the western 
allies were preoccupied with the bat- 
tle for France. 


Walesa has invited 
Russian and 
German leaders to 
commemorate the 
anniversary of the 
tragic Warsaw 
uprising. Anthony 
Robinson reports 


“The decision to launch the rising 
represents for the Poles the most 
tragic mistake in their recent his- 
tory,” wrote historian Norman 
Davies, author of “God's Playground”, 
the most authoritative contemporary 
history of Poland. Its failure scarred a 
generation of Poles and set the scene 
for 45 years or east-west mistrust and 
the Cold War. 

Given this background, the decision 
of Polish President Lech Walesa to 
invite the Presidents of re-united Ger- 
many and post-communist Russia, as 
well as representatives of the war 
time allied powers, to this weekend's 
ceremonies has been controversial. 
Intended as a gesture of forgiveness 
for crimes which Poles will never per- 
mit to be forgotten, the Russo-German 
presence has been fiercely criticized 
by Mr Walesa's domestic political 
opponents and nationalist critics. 

Mr Roman Herzog, the recently 
elected German president, accepted 
under the unfortunate misapprehen- 
sion that the object of commemora- 
tion was an earlier slaughter of the 
innocents, the desperate Warsaw 
Ghetto uprising of April 1943 when 
the last remnants of the Jewish 
ghetto fought a doomed battle to pre- 
vent their transport to the death 
camps, while Russian President Boris 
Yeltsin passed the invitation on to 
lesser officials. Prime minister John 
Major is representing Britain but US 
President Bill Clinton, who toured 
central Europe before the Naples sum- 
mit, is sending vice president Al Gore. 

The international line-up may be 
lighter and more controversial than 


hoped. But nothing can take away 
from the significance of the event 
being commemorated. 

Five decades ago Soviet forces 
under General Rokossowski had 
advanced to the suburbs of Warsaw. 
German troops under General Erich 
von dem Bach-Zelewski were evacu- 
ating stores and preparing to vacate 
the city. In his makeshift under- 
ground headquarters General Tadeusz 
Bor-Komorowski, commander of the 
Polish Home Army and the chief dele- 
gate from the Polish government in 
exile in London were debating how 
and when to strike what they hoped 
would be a decisive blow for libera- 
tion. 

On the evening of July 29, Moscow 
Radio broadcast to Warsaw that “the 


hour of action has arrived.*' This 
apparent invitation to take up arms 
against the retreating Nazi's was 
accompanied by the first sighting of 
Soviet T-34 tanks in Praga, a suburb 
just across the river Vistula from the 
historic town centre. 

The rising began at five o'clock on 
the afternoon of August 1 and ended 
two months later with the surrender 
of the last pockets of Polish resis- 
tance. It was followed by the forced 
evacuation of the surviving popular 
tion and the systematic destruction of 
85 per cent of the city on Hitler’s 
express orders. 

The outcome of the unequal battle 
was never in doubt after the hoped for 
Soviet intervention failed to material- 
ise and the first four days of fighting 


failed to secure the airport, the rail- 
way station or the bridges over the 
Vistula. Hitler, shocked and angered 
by the failed bomb plot against him a 
few days earlier, ordered his com- 
manders back to the city to suppress 
the rising ruthlessly. 

Fighting street to street, and cellar 
to cellar even continued in the sewers 
which formed the main lines of com- 
munication for the beleaguered AK 
while German ground troops backed 
by heavy artillery, dive bombers and 
tanks remorsely tightened the net To 
this day the track of a German ’‘goli- 
ath" mini-tank lies embedded in the 
rebuilt walls of St John's cathedral in 
the heart of the old city where 
mass will be said on Sunday 
in memory of those, soldiers 


and civ ilians , who todk part 

The last hope flickered and died on 
September IS when a daylight 
air-drop of food and arms by allied 
bombers left 90 per cent of the aid in 
German hands. The bombers were 
forced to fly to the limits of their 
range from bases in Italy because 
Stalin refused to allow them to use 
airfields in Soviet-occupied territory. 

It was a telling omen of things to 
come, which the allies turned a half- 
blind eye to, preoccupied as they were 
with breaking out from the Normandy 
beachheads and unwilling to "anta- 
gonise Uncle Joe", the man whose 
Red Army had torn the guts out of 
Hitlers armies in the east 

But the Poles had embarked upon 
the rising harbouring no illusions. 
Their aim was to liberate the Polish 
capital from the Nazis and "to mobi- 
lise the entire population spiritually 
for the struggle against Russia.'’ 

For the Poles already knew what 
being "liberated" by Soviet forces 
meant. Five years earlier, in Septem- 
ber 1939. Poland had been violated by 
Hitler and Stalin together under the 
terms of the Moloto v-Rib bentrop pact 

Poles, and the large pre-war Jewish 
population in particular, suffered ter- 
ribly under Nazi rule. But for non- 
Jews. political and physical repres- 
sion by the Soviet secret police, the 
NKVD, in the Soviet-occupied east of 
Poland was in many ways worse than 
that imposed by the Gestapo. 

To the Nazis the Poles were simply 
1 imtermenschen " whose ideas and cul- 
ture were of no interest For Stalin's 
commissars, by contrast, Poland's 
nationalist traditions and "bourgeois" 
culture were a threat to be elimi- 
nated. Hence the cold-blooded murder 
of thousands of captured Polish offi- 
cers in Katyn forest near Smolensk. 
Hence the mass arrest of Polish intel- 
lectuals, priests and teachers and 
their execution or deportation to 
Siberia. 

The AK’s decision to fight for a 
“Polish solution** to Poland's future 
was "taken for the most honourable 
motives by men who had fought self- 
lessly for their country's indepen- 
dence against all comers,” writes Pro- 
fessor Davies. But. "the idea that 
Warsaw could have been held by the 
AK In the name of the government in 
exile without a subsequent showdown 
with the Soviets was belied by all 
previous experience," he adds. 

So it proved. But the tradition of 
stubborn resistance to foreign occupa- 
tion embodied by Warsaw's defenders 
lived on to re-emerge a generation 
later in the anti-Soviet Solidarity 
movement. The defeat of 50 years ago 
turned into the victory of 1989 when 
Poland became the first of Moscow's 
satellite states to throw off the Soviet 
shackles. In so doing Poles started the 
process which liberated not only cen- 
tral Europe but permitted the re-unifi- 
cation of Germany and the re-emer- 
gence of a Russia shorn of its Soviet 
imperial arrogance. That is the final 
testament to an immense sacrifice. 


Clinton faces a fierce Civil rights group 
attack over Whitewater suffers fresh blow 


By Jurek Martin in Washington 

Republicans in the US Senate 
yesterday launched a series of 
savage attacks on President 
Bill Clinton, his administration 
and even Mr Robert Fiske, the 
Whitewater special counsel, for 
failing to come clean on the 

affair . 

Senator Al D'Amato of New 
York charged that the White 
House had "concealed, dis- 
guised and distorted the truth, 
all in the service of politics and 
the president's self-preserva- 
tion." 

He also accused Mr Roger 
Altman, the deputy treasury 
secretary, of deliberately mis- 
leading Congress last February 
in testimony about his con- 
tacts with White House offi- 
cials over criminal investiga- 
tions into Madison Guaranty, 
the failed Arkansas savings 
and loan company at the heart 
of Whitewater. The affair 
steins from the first family’s 
land and finan cial dealings in 
their home state in the 1970s 
and 1980s. 

The hearings of the Senate 


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banking committee contrasted 
sharply with those held earlier 
in the week by Its House coun- 
terpart, where Congressman 
Henry Gonzalez, the Demo- 
cratic chairman, controlled 
both statements and questions 
tightly. 

Technically on the agenda 
yesterday was testimony by 
police and medical officials on 
the circumstances of the sui- 
cide last summer of Mr Vin- 
cent Foster, then deputy White 
House legal counsel. But each 
member of the committee was 
permitted a lengthy opening 
statement before any witnesses 
were summoned. 

Senator Lauch Faircloth of 
North Carolina, citing old pro- 
fessional contacts between the 
special counsel and Mr Clin- 
ton’s legal representatives, 
accused Mr Fiske of "hiding 
information that would be 
embarrassing to the Clintons." 

In an interim report, Mr 
Fiske, a Republican, exoner- 
ated administration officials of 
any criminal wrongdoing in 
the Madison affair and found 
that the death of Mr Foster 


By Michael Prows© 
in Washington 

The US economy grew at an 
annualised rate of 3.7 per cent 
between April and June partly 
because companies accumu- 
lated inventories faster than in 
previous quarters, the Com- 
merce Department said yester- 
day. 

Bond and share prices rose 
sharply on Wall Street as trad- 
ers interpreted the rise in 
inventories as a sign that 
growth would decelerate in the 
second half, reducing the need 
for further interest rates 
increases. Consumer spending 
grew at an annual rate of 1.2 
per cent, a third the pace in 
previous quarters. 

Many economists, however. 


was a clear case of suicide. 

This conclusion was 
endorsed yesterday by Mr 
Larry Monroe, an FBI special 
agent, who testified that foren- 
sic and other evidence offered 
"irrefutable proof that he had 
taken his own life and that bis 
depression could not be 
ascribed to concerns about 
Whitewater. 

Mr Foster's family has bit- 
terly complained at the grief 
caused by allegations from 
right-wing talk show hosts con- 
cerning his death. It had 
appealed to the Senate commit- 
tee not to prolong their agony 
by airing such conspiracy theo- 
ries at the hearings. 

But Senator D'Amato hinted 
at further dark conspiracies 
when it was announced that a 
park service policeman due to 
testify yesterday was “out of 
town." 

He did not appear contrite 
when advised that the police- 
man would in fact be appear- 
ing on Monday. 

Democratic senators mostly 
held the line in defending the 
administration. 


played down the significance of 
higher inventories' and pre- 
dicted a rebound in consumer 
spending later tins year. 

The second quarter gain in 
output was the 13th consecu- 
tive quarter of economic 
growth following a mild reces- 
sion in I990-9L. GDP is now 
nearly 10 per cent higher in 
real terms than at the trough 
of the recession. 

Data revisions showed 
growth at annualised rates of 
&3 per cent and 3.3 per cent in 
the fourth and first quarters 
respectively, against previous 
estimates of 7.0 per cent and 
3.4 per cent 

Mr John Lipsky, chief econo- 
mist at Salomon Brothers, the 
New York brokerage, predicted 
growth in excess of 3 per cent 


By Jurek Martin 

The reputation of one of the 
oldest and most illustrious US 
civil rights organisations was 
further damaged yesterday by 
details of an out-ofcourt settle- 
ment or sexual harassment 
charges brought against its 
director. 

According to reports in both 
the New York Tunes and the 
Baltimore Sim, the Rev Benja- 
min Chavis last year commit- 
ted the National Association 
for the Advancement of Col- 
oured People to pay op to 
$332,400 in damages without 
informing the NAACP's board 
and its legal counsel. 

The plaintiff, Ms Mary Stan.- 
scl, who briefly worked for tbe 
organisation last year, is now 
additionally suing Mr Chavis 
and the NAACP for breach of 
part of the out-of-court settle- 
ment under which she would 
be found a job elsewhere pay- 
ing at least $80,000 a year. 

Several NAACP board mem- 
bers were quoted as saying 
that they knew nothing of the 
settlement and subsequent suit 


Short Sterling 

D«9mbw J 94 future starling contract 
Bid price 

95.5 — 



Jan 1994 Jut 
Souwft. FTOapMe 


at an annual rate In the second 
half, reflecting a rebound in 
consumer spending and 
exports, and a further rise in 


and that nothing was commu- 
nicated about either at the 
organisation’s annual conven- 
tion in Chicago earlier this 
month. 

Lawyers for Mr Chavis said 
he denied the sexual harass- 
ment charges and he had 
reached the settlement under 
duress and in order to preserve 
his reputation. Good faith 
attempts were made to find Ms 
StanseL another job, but she 
either failed to turn up for 
interviews or overstated her 
qualifications, one said. 

Mr Chavis was elected execu- 
tive director of the 85-year-old 
NAACP in April last year. He 
took over an organisation with 
a membership of only about 
500,000, less than half that of 30 
years earlier, and with current 
debts estimated at about S3m. 

It was also deeply split 
between traditional moderate 
integra tionists and outspoken 
black nationalists. This came 
to a head early in June when 
Mr Chavis invited Rev Louis 
Farrakhan. militant head of 
the Nation of Islam, to partici- 
pate in a "black summit". 


inventories. The Federal 
Reserve was likely to raise 
rates by anotber percentage 
point to about 525 per cent by 
the end of the year, he said. 

Ms Laura Tyson, the chief 
White House economist, said 
the figures were consistent 
with her projections of a 3 per 
cent rise in both growth and 
inflation this year. 

The gain in inventories 
was mostly a voluntary adjust- 
ment by companies to faster 
growth. 

Inflation was under control, 
she said. The “fixed price" 
GDP deflator - a broad gauge 
of inflation - rose at an annual 
rate of 2.9 per cent in the 
second quarter, down from 3.1 
per cent in the first three 
months. 


US growth 3.7% in 2nd quarter 

GDP now 10 per cent higher than at the trough of recession 


Serbs 
may face 
stiffer 
air power 

By Bruce Clark 

Tighter economic sanctions 
and tougher use of Nato air 
power against tbe Serbs will 
top the agenda at today's 
meeting in Geneva between 
the five nations which are try- 
ing to Impose a settlement on 
Bosnia. 

Mr Warren Christopher, the 
US Secretary of State, said he 
and his counterparts from the 
UK, France, Germany and Rus- 
sia would be considering 
stricter enforcement of the 
exclusion zones designed to 
protect the Bosnian Moslems. 

"That will require perhaps a 
further use of Nato air power," 
he said. 

Shoring np the existing 
regime of sanctions and exclu- 
sion zones would be a milder 
coarse of action than the one 
which is demanded by many 
US politicians: lifting the arms 
embargo against Bosnia's Mos- 
lem-led government 
But the US administration 
appears to have soft-pedalled 
on this idea, for the sake of 
preserving unity among the 
five-nation contact group. 

Mr Malcolm Rifitind, the UK 
defence secretary, said yester- 
day his country remained 
opposed to lifting the arms 
embargo, although it would 
not stand In the way if inter- 
national support for such a 
move built np. 

Russia was thought likely to 
acquiesce in some form of 
pressure on the Serbs, as long 
as the raising of the arms 
embargo - which would be 
anathema in Moscow - Is kept 
off the agenda. 

The peace plan's virtual 
rejection by the Serb side has 
caused anger in western capi- 
tals and embarrassment in 
Russia, a traditional ally of 
the Serbs. 

Senior Russian officials have 
unsuccessfully tried this week 
to persuade the Bosnian Serbs 
to come up with a more 
reasonable negotiating posi- 
tion. 


INTERNATIONAL NEWS DIGEST 

Britain backs ( 
Bonn UN role 

Britain sees a German sent on the UN Security Council as 
both desirable and likely, Mr Douglas Hurd, the UK foreign 
secretory, said yesterday. It was the second time in a week 
that Mr Hurd has voiced his approval for a more active 
German role on the world stage. Asked on BBC radio whether 
Britain would back a proposal to give Germany a permanent 
Security Council seat, he replied: “Yes, indeed we would." He 
added that the UK viewed German admission as a probable 
outcome of forthcoming debates on the UN's future structure. 

UK officials said London continued to link German and 
Japanese admission to the Council with a broader reform of 
the institution, in which Latin America, Africa and Asia might 
also ri«n.md seats. Mr Hurd told the German magazine Der 
Spiegel, in an interview published this week, that Britain 
welcomed the prospect of a more decisive role for Germany in 
international affaire. He said it was “childish twaddle" to 
imagine that Britain might be jealous of President BQI Clin- 
ton's enthusiasm for ties with German}-. Bruce CUxrk. London 

EU hits back over fraud claim 

The European Commission yesterday hit back at allegations 
that up to 8 per cent of EU funds was going astray each year 
amid growing fraud in the Union budget Responding to a 
highly critical report by Britain’s House of Lords, the Commis- 
sion said the fraud battle should mainly be fought by member 
states as they were directly responsible for spending three- 
quarters of the budget 

The Lords report said that while it was impossible to esti- 
mate the scale of fraud within the EU it was at least £4bn-£5bn 
a year, equivalent to 7-8 per cent of the EU budget The 
Commission said it had proof that fraud accounted for 1 per 
cent of the EU budget. "Nobody knows how much the fraud is. 

If it's at that level it shows total dereliction of duty by member 
states," said a Commission spokesman. Brussels yesterday set 
out a scheme under which people who inform on EU fraud 
could get up to EculD.UOO (£7,886) for tip-offs. About Ecu2OO,OQ0 
would be earmarked annually for the scheme. Emma Tucker, 
Brussels and Starart Dalby , London 

Warning on Rwanda refugees 

The United Nations' top aid official said yesterday Rwanda 
could see yet another 'World record” refugee exodus when 
French troops pull out of their south-western security zone 
next month. Mr Peter Hansen, under-secretary -general for 
humanitarian affairs, issued the warning on his return from 
the region, where the UN Is already- struggling to look after 
more than 2m refugees. About 1.6m Rwandan Hutus have 
taken refuge in the safe area set up by France, which says it )' 
will withdraw its SL500 troops by the time tts UN mandate (N 
expires on August 21 The first French troops left yesterday. l ' 
"If we have a vacuum and that vacuum would lead to instabil- 
ity, we could see an exodus from that zone into Zaire, where 
there are already 500,000 to fioo.ooo refugees in Buknvu add ' ’ 
Uvira," Mr Hansen said. In Washington, President Clinton 
asked Congress to approve 3320m of extra aid. He said the US 
was "urgently reviewing" whether to open a new airfield in ' 
the Rwandan capital. Kigali, to speed aid deliveries. Reuter, 
Geneva and Washington 

Bomb attack in Madrid 

General Francisco Veguillas, who as director-general of 
defence policy played a key role in modernisation of Spam's 
armed forces, was killed yesterday, together with his driver, 
when a car bomb exploded alongside his car. The blast, in 1 
central Madrid, also killed a bystander and severely wounded 
at least eight others. The attack, which bore the hallmark of 
ETA, the Basque separatist organisation, came in the midst of 
a controversial initiative by the new interior and justice minis- 
ter Mr Juan Alberto Belloch to allow partial freedom to an 
initial 30 out of more than 500 Jailed ETA members serving 
kmg sentences. Gen Veguillas, 69, replaced Admiral Fausto - 
Escrigas. who was also killed by ETA, as director general of ~ 
defence policy, in 1985- Yesterday's attack brought the number 1 
of ETA victims this year to nine, five of them military officers. 
Tom Bunts, Madrid 

Vote to freeze Ukraine sell-off 

Ukraine's parliament voted yesterday to freeze the privatisa- 
tion of state enterprises for six weeks. Deputies voted 18062 
for a resolution that said the system of privatisation was 
flawed and had to be stopped until the assembly decided 
which types of property are not to be transferred to private 
ownership. It ordered the government to draw up a list of 
enterprises in transport, energy and communication which 
should not to be privatised "because of their national signifi- 
cance" and submit the list for parliament's approval in Sep- 
tember. The resolution also ordered a review of the mecha- 
nism by which foreign investors participate in privatisation. 
Deputies were keen to prevent enterprises avoiding the com- 
petitive process and buying out their leases from the state for 
a low price. Reformers, including Mr Vdodymyr Kuznetsov, 
head of President Kuchma's economic service, woe opposed to 
the resolution, and said the process of privatisation could not 
be stopped. Foreign Staff. London 

Move for Dutch coalition 

The tortuous search for a Dutch government coalition entered 
a new phase yesterday when Mr Wun Kok. finance minister in 
the outgoing government, said he would try to form a three- 
party government of his own Labour party, the right-wing 
Liberals and the left-of-centre D66. The negotiations, which 
will begin next week, represent the second attempt to put 
together a coalition of the three parties since the Christian 
Democrats suffered an historic defeat in the May general 
election. The first attempt was scuppered by disagreements 
over social welfare spending. But the differences between 
Labour and the Liberals in particular have narrowed after Mr 
Kok unveiled a proposed government programme on Monday 
stressing cuts in social spending and promising to boost jobs. 

All four main parties responded positively to Mr Kob's propos- 
als, but he derided to exclude the Christian Democrats from 
the negotiations because they opposed maintaining levels of 
social benefits. Ranald van de Krai Amsterdam 

Pergau funds repaid early 

Almost half the controversial subsidised loan provided by the 
UK government for the Malaysian Pergau Dam project has 
been repaid early. Tenaga Nasionai, the Malaysian electricity 
authority, yesterday repaid U40m of the £305m loan around 10 
years ahead of schedule. As a result the UK government will 
recoup £9Jm of the £255 cash costs of subsidising the loan. 

This represents savings for the government of the “margin" it 
pays to the commercial banks which administer the loan, 
according to officials. But Tenaga is continuing to enjoy the 
full benefit of the UK government subsidy. The UK govern- 
ment has been criticised by MPS for giving too much of its aid 
budget to the Pergau project and for using the promise of aid 
to win a substantial defence contract. Robert Pestan. London 

Spanish trawlers end blockade 

More than 300 Spanish trawlers yesterday ended a four-day 
blockade of most north coast domestic ports, as well os of the 
border town of Hendaye in France. The blockade was to 
protest against alleged illegal tuna fishing practices by French 
vessels. The protest, which has severely affected maritime 
traffic, including tourist-laden ferries, ended after the Madrid 
government gave assurances it would insist on strict imple- 
mentation of EU fishing guidelines and closely monitor the 
quality of fish imported from France. The “tuna war", over 
French trawlers' use or drift nets to catch tuna which is then 
exported to Spain, prompted clashes between the two fleets 
earlier this month. The Spanish trawler fleet, which uses rods 
to land tuna, claims the French vessels use nets longer than 
the 2.5km permitted by the EU, Tom Bums. Madrid 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


3 



\ i 


NEWS: INTERNATIONAL 


Japan’s jobless rate 
nears all-time high 


By Gerard Baker in Tokyo 

Further evidence of the 
weakness of the Japanese econ- 
omy emerged yesterday with 
figures showing an increase in 
unemployment and a sharp fall 
In the inflation rate. 

Seasonally adjusted unem- 
ployment rose by 0.1 per cent 
to 2.9 per cent in June, accord- 
ing to the government’s Man- 
agement and Co-ordination 
Agency. The jobless figure has 
been rising steadily since the 
recession began three years 
ago, and now stands just below 
its all-time high of 3.1 per cent 
recorded in May 1987. 

Separate figures released by 
the labour ministry revealed 
that the job offers-to-applicants 
ratio declined ftirther last 
month to 0.63 per cent, the low- 
est level in more than seven 
years. The number of job offers 
fell in the year to June by 6.5 
per cent while the number of 
applicants rose by 13.8 per 
cent Employment fell sharply 
in all the main sectors of the 
economy, led by the wholesale, 
retail, and restaurant sector, 
with a drop of 170,000 workers 
horn a year ago. 

Though most Japanese com- 
panies have maintained their 
commitment to lifetime 
employment, and have avoided 
compulsory redundancies, they 
have cut recruitment and 
encouraged earlier retirement 

Mr M ans n Hamamoto, the 
labour minister, said the fig- 
ures showed the labour market 
was “in a continuously precari- 
ous situation". 

Most analysts agreed. Mr 
Geoffrey Barker, chief econo- 
mist at Barings in Tokyo, said: 
“Despite the reticence of com- 


Japan: employment 



1990 

Sowea: Official etatlatica 


1991 


4992 


>06 


1993 


94 


panies to lay off en masse, the 
unemployment rate is likely to 
rise above 3 per cent in the 
next few months." 

The inflation figures showed 
that consumer prices in Tokyo, 
the bellwether for the rest of 
the nation, fell in July by 0.3 
per cent from a year ago, the 
first year-on-year drop since 
1987. 

A sharp decline in fresh food 
prices was the principal cause 
of the fall, according to govern- 
ment officials. Poor weather 
last summer led to a sharp rise 
in prices a year ago, magnify- 
ing the year-on-year decline 
this month 

But the core inflation rate, 
excluding food prices, also fell 
sharply to 0.6 per cent, the low- 
est level since September 1988. 

There was better news with 
the publication of figures 
showing an increase in hous- 
ing starts and a rise in con- 
sumer confidence. The con- 
struction ministry reported 
that housing starts were up by 


10.6 per cent on a year ago to 
147,909 homes, and the Eco- 
nomic Pl ann ing Agency 
reported that its consumer sen- 
timent index rose 7.8 per cent 
in the three months to the e nd 
of June. The index measures 
expectations in five categories: 
employment, income growth, 
prices, livelihood and durable 
goods purchases. 

But even here the good news 
was tempered by the feet that 
it was consumers’ expectations 
of lower prices that contrib- 
uted most to the increase in 
confidence. 

Economists were agreed 
that, overall, the figures were 
consistent with very sluggish 
growth this year. Mr KiroMko 
Okumura, chief economist at 
Nomura Research Institute, 
said: “Falling inflation and ris- 
ing joblessness suggest that 
capacity continues to outstrip 
demand, pointing to a continu- 
ing weak performance by the 
Japanese economy for the fore- 
seeable future.” 


Rise in expenditure approved 


By Gerard Baker in Tokyo 

The Japanese cabinet 
yesterday approved a 3.8 per 
cent increase in public expen- 
diture railing s for the 1995-96 
fiscal year, the first rise for 
three years. The railin gs repre- 
sent an increase of 4.8 per cent 
over the initial spending plans 
outlined in the budget earlier 
this year. 

General operating expendi- 
tures - the core budget, exclu- 
ding debt service costs and 
grants to local government - 
are to total Y42320bn (£284bn) 
Special factors, such as costs 
related to next year's upper 


house elections and the 
national census, will account 
for much of the increase. 

But the new coalition gov- 
ernment of Social Democrat, 
Liberal Democrat and centrist 
Sakigake parties agreed to 
allow investment-related 
spending to rise by 5 per cent 
in an effort to stimulate the 
fragile economy. Current 
spending is to be cut by up to 
10 per cent 

The principal feature of the 
budget allocations is a new 
Y300bn special investment 
fund to allow the government 
to target priority areas such as 
far ming assistance and tele- 


communications systems. The 
tightest financial squeeze will 
be at the defence agency. 
Defence spending requests are 
to be held to an increase of just 
0.9 per cent the smallest rise 
since ceilings were first 
imposed in 196L 
Other figures released yester- 
day showed the government 
deficit in the fiscal year 1993-94 
was Y566Jbn, the second con- 
secutive annual deficit. The 
figure Is expected to increase 
sharply this year as substan- 
tial income tax cuts take effect 
increasing pressure an the gov- 
ernment to reach agreement 
on a consumption tax rise. 


Japanese take a hesitant look at Aids 

Drug users and prostitutes are honoured conference guests, reports Gordon Cramb 


J apan’s bureaucrats are 
being reduced to blue- 
suited bemusement at the 
arrival of one of the strangest 
and most feared processions of 
visitors from abroad since Gen- 
eral McArthur's occupying 
troops hit town 49 years ago. 

There will be 3,870 of them at 
latest count, with the D5 sup- 
plying the largest contingent 
Known prostitutes will be 
waved through by immigration 
staff at Tokyo’s Narita airport 
in the coming week, while 
intravenous drug users are 
assured they have nothing to 
fear from the normally scrupu- 
lous Narita customs as long as 
they bring in their prescribed 
methadone rather than heroin, 
its street equivalent 
Narita personnel are among 
those who have been given spe- 
cial training in an attempt to 
ensure they do not offend these 
honoured guests, whose visit 
forms part of Japan's effort to 
secure a role in world affaire 
more commensurate with its 
economic stature. The country 
is hosting the annual interna- 
tional conference on Aids, 
which starts in Yokohama next 
weekend. 

The bulk of those arriving 
from abroad for the event will 
be men in white coats. But the 


conference, held last year to 
Berlin, has become an often 
rowdy meeting ground for the 
scientists seeking a cure, a vac- 
cine or palliative treatments 
for the disease, companies hop- 
ing to profit from any such 
developments, and campaign- 
ing organisations representing 
those who have been exposed 
to the HTV virus. 

Activists may, as has become 
almost traditional, again zap 
the stand at the conference 
centre run by Wellcome of the 
UK, maker of the AZT treat- 
ment for which clinical trials 
continue to report patchy and 
sometimes detrimental results. 

But the campaigners will be 
present in smaller numbers 
this year. Some 13,000 partici- 
pants of all persuasions gath- 
ered In Berlin, the large major- 
ity of whom came from outside 
Germany. This time the 4,729 
Japanese delegates will pre- 
dominate, according to figures 
released by the organising 
committee yesterday. 

In 10 years, it is the first 
time the conference will have 
been held in Asia, where after 
a late start the proliferation of 
HIV among largely urban pop- 
ulations threatens to cast a 
shadow over economic growth. 
“Now the Aids epidemic is 


truly rampant in Asia, it is 
meaningful to hold the meet- 
ing here,” Dr Takashi Ki ta- 
rn ura, programme committee 
chair, said yesterday. 

Up to lm in India's great 
cities are estimated already to 
be infected, and the more 
developed economies repre- 
sented by the six-nation Asso- 
ciation of South-East Asian 
Nations (Asean) agreed last 
month (they should seek to 
"prevent the disease from 
spreading across our work- 
force”. 

The US, Japan and Australia 
are to help fund an Aids pro- 
gramme for Asean. However, 
fewer than a tenth of the dele- 
gates to the Yokohama confer- 
ence, which alms to focus 
attention on the problem fac- 
ing the region, will be drawn 
from the Asia-Pacific outside 
Japan. 

For most, the main impedi- 
ment is a YS0.000 (£527) regis- 
tration fee and the Y25.000 a 
night cost of a hotel room near 
the conference centre. Some 
1,500 would-be delegates 
applied for subsidies, but con- 
ference organisers could not 
say yesterday how many had 
been granted. 

The Japanese government 
has committed Y150m over 


three years to the total costs of 
staging the conference, less 
than the amount required to 
fund each of these applicants 
for a one-day stay, airfare not 
included. 

Nonetheless, health ministry 
officials are wearing the red 
ribbon of Aids awareness on 
their navy lapels and have 
been educating everyone from 
their airport colleagues to 
those who make the beds in 
the $250 Yokohama hotels that 
HIV cannot be caught merely 
by handling a passport or a 
vanity towel. 


Ai 


long the way they are 
passing on the mes- 
. sage, still only half 
believed, that Japan itself is by 
no means immune to the real 
risks. 

The health ministry said this 
week that 3339 residents of the 
country had tested HIV posi- 
tive, excluding those who had 
contracted the virus through 
blood transfusions in the first 
half of the 1980s. 

The majority of those newly 
diagnosed were Japanese 
natio nals who were apparently 
exposed through heterosexual 
intercourse. 

In hosting the 10th annual 
conference on Aids, Japan has 


accrued better credentials than 
the US. where the assembly 
has not been held since its ear- 
liest years because of restric- 
tive immigration policies. 

Medical researchers and 
pharmaceutical manufacturers 
arriving next week may be 
thankful that they are less 
likely than in the past to be 
accosted by those either decry- 
ing their treatments or 
demanding them for free. But 
if the event passes without 
undue incident, the Japanese 
bureaucrats will be the local 
heroes of the piece. 

For a small outlay on the 
part of their government they 
will have raised awareness of 
the real risks while dispelling 
many of the anxieties sur- 
rounding social contact with 
people with Aids - about 90 
Yokohama high school volun- 
teers will tend those in the 
“care lounge”. 

And the conference may 
even bring broader trade bene- 
fits to foreign companies. The 
health ministry said US activ- 
ists could import 3,700 con- 
doms to distribute in Yoko- 
hama. Japan has until now 
prohibited condom imports by 
deeming them a medical prod- 
uct - one or its remaining non- 
tariff barriers to trade. 



Fights broke out in the Taiwanese National Assembly cm Thursday as opposition deputies staged a 
walkout over the passing of plans for the first direct presidential elections, set for 1996 


Vietnam wakes 
up with a thirst 

Brewers are competing fiercely in 
a new market, says Iain Simpson 

it 


China gives hope of Gatt deal 


ly Guy de Jonquidres in London and 
iny Walker in Beijing 

na said yesterday that it expected 
•egin “the final stage” of its negoti- 
ns to re-join the General Agree- 
it on Tariffs and Trade at the end 
next month, when it plans to file 
jroved offers on market access for 
-ducts and services, 
speaking at the end of two days of 
ks with Gatt members in Geneva. 
Long Yongtu. Beijing’s chief nego- 
tor, said his government was ready 
negotiate on the offers in Septem- 
r and would work constructively for 
. agreement on accession. 

The sense that the eight-year-old 
Iks with Beijing were approaching a 
•cisive phase was reinforced by the 
osing statement by Mr Pierre-Louis 
irard, the Swiss economics ministry 
Ticial who chaired this week's work- 
i g party. He said the working party 
ad before it for the first time “major 
ammeters” which could serve as the 
asis for negotiating a draft protocol 
or China's Gatt accession. He hoped 
o call the next meeting in late Sep- 
ember or early October. 


Mr Girard Indicated that prospects 
at that meeting were likely to depend 
on progress made in the meantime in 
bilateral discussions between individ- 
ual Gatt members and Booing. 

However, he emphasised that 
though some progress had been made 
towards convergence on the issues 
raised by China's accession, there 
were still many points of difference. 

Though China has previously said it 
wants to be a founder member of the 
World Trade Organisation, due to suc- 
ceed the Gatt early next year, Mr 
Long failed to reiterate that ambition 
in his statements this week. 

One western diplomat who partici- 
pated in the meeting suggested China 
had begun to realise that WTO mem- 
bership - which would mean sub- 
scribing to the provisions of the Uru- 
guay Round world trade agreement - 
required far more complex negotia- 
tions than simply re-joining the Gatt. 

Though Beijing has said it is ready 
to accept all the obligations of WTO 
membership, it presented this week's 
meeting with a 10-point list of “non- 
negotiable” demands. 

Earlier this month, officials in Bei- 


jing accused the US of blocking Chi- 
na's application and threatened to call 
off the negotiations if Washington 
does not drqp its insistence that it 
joined as a developed country. 

Observers are unsure whether Chi- 
na’s public posture is part of a delib- 
erate strategy, or whether - as some 
western diplomats in Beijing believe - 
it reflects political problems rooted in 
deep divisions in its bureaucracy. 

Mr Zhu Rongji, senior vice premier 
in charge of the economy, has 
emerged as a leading “Gatt-sceptic” 
and is said to be insisting that negoti- 
ators yield little on China's demand to 
join as a developing country. 

His stand may be connected with 
political manoeuvring in the Chinese 
leadership. He is under pressure from 
conservatives unhappy about his lib- 
eralising policies, and without his 
support compromise on sensitive Gatt 
issues will be difficult 

“The Chinese can’t seem to get 
their act together,” said a western 
diplomat in Beijing. “It is going to 
take very hard negotiations, and they 
are not used to hard multilateral 
negotiations.” 


Chilean growth seen as 
rising to more than 4% 


By David PBHng to Santiago 

Chile’s main business federation has 
revised upwards its estimate of eco- 
nomic growth in 1994 to between 4 
and -L5 per cent. At the Start of the 
year many business leaders were fore- 
casting growth in the range of 2 per 
cent to 33 per cent after the economy 
had cooled rapidly in the second half 
of 1993. 

“The difficulties that we foresaw at 
the beginning of the year are dispers- 
ing and it is becoming increasingly 
clear that the economy will grow by 
roughly 4-43 per cent,” said Mr Jos6 
Antonio GuzmAn, president of the 
CPC. “I am more optimistic than I 
was in January,” he said. 

Mr Guzmfin attributed the 
improved prospects to the higher 
prices being fetched by Chile’s princi- 
pal exports - copper, cellulose and 
fish meal - which were depressed for 
most of last year. 

Exports in the first half of 1994 rose 
by 93 per cent over the same period 


last year to $53bn (£3.4bn), with non- 
traditional exports up 18 per cent. 
Imports rose by only 53 per cent, 
although those of capital goods 
increased by 16 per cent, encouraging 
hopes of future productivity 
gains. 

Mr Guzmfin 's statements follow the 
release of several other encouraging 
economic indicators, most recently a 
sharp rise in the monthly economic 
activity index for May, bringing the 
growth rate over the first five months 
of 1994 to 33 per cent May’s rise in 
the index oF 63 per cent was the high- 
est since last June. 

The strong export performance, 
which has produced a balance of 
trade surplus of $237m for the first six 
months (in spite of a deficit in June) 
has prompted the central bank to 
revise its trade estimates for the sec- 
ond time this year. The bank now 
expects a trade deficit of only $150m- 
$200m, compared with the near $lbn 
deficit predicted at the start of the 
year. 


street-side bars 
throughout Vietnam, a 
battle is under way for 
the loyalty of beer drinkers. 
For the first time in many 
years, the country is experienc- 
ing a fully Hedged marketing 
battle. 

For many people there's still 
no choice. In many towns and 
cities, a small local factory pro- 
duces draught beer which it 
sells In barrels straight to the 
bars. Increasingly, though, new 
canned and bottled beers are 
also on sale in bars and shops 
and the manufacturers are 
spending heavily to promote 
their products. 

One recent arrival which has 
grabbed its comer of the mar- 
ket is Tiger beer from Singa- 
pore. It has been marketed as 
the drink of the newly rich. “I 
think if you are a businessman 
in Vietnam today, you will 
drink Tiger Beer,” says a 
young Vietnamese executive. 
“That’s the reason why the 
Vietnam Brewery which makes 
Tiger beer has been so 
successful” 

Tiger caused a stir when its 
advertisements featuring a 
blonde woman first appeared. 
When the local authorities 
issued new rules banning the 
use of foreigners in advertis- 
ing, it was rumoured to be a 
response to the Tiger adverts. 

The beer is now brewed in 
the southern commercial capi- 
tal, Ho Chi Minh City, by a 
joint venture between the 
Dutch brewer Heineken, Singa- 
pore-based Fraser and Neave 
and a local partner. It was the 
first such venture to produce 
an imported beer locally and 
has captured a large share of 
the business market. 

However, it's expensive and 
at a dollar a bottle, most local 
people still can't afford to buy 
it Cheaper, and more popular 
among ordinary people, is 
Saigon beer, brewed by the 
Saigon Brewery. 

Saigon Brewery, like many 
of its local competitors, is in 
the middle of a big expansion 


programme. At the moment 
the average consumption of 
beer is less than four litres a 
year. Across the world the 
average is nearly four times 
that and in other South-East 
Asian countries such as the 
Philippines it is much higher. 

Local and foreign manufac- 
turers believe this market still 
has a long way to grow. The 
limi t now is the capacity of 
breweries in the country. At 
the moment, the national 
capacity is less than 300m lit- 
res a year. But everyone seems 
to be expanding. When current 
growth targets are fulfilled, 
towards the end of this decade, 
total output will be about 500m 
litres a year. Industry bosses 
say that still won't be enough 
to satisfy this thirsty market. 

Another brewery that is 
expanding is Halida in Hanoi, 
which produces its own brand 
and has a joint venture agree- 
ment to make the Danish beer, 
Carlsberg. The brewery is in 
the middle of a development 
which will see capacity 
increase from 25m litres this 
year to more than 100m by the 
end of the decade. 

he company that now 
makes Halida is one of 
the big success stories 
of Vietnam’s transition to a 
market economy. For many 
years, the company produced 
fish paste for export to eastern 
Europe. But with the collapse 
of the communist bloc, that 
market dried up and general 
manager Nguyen Thi Anh 
Nban started looking for a new 
outlet 

Abandoning fish paste, she 
managed to borrow $3m to set 
up a simple beer production 
line. That was in 1990. Now, 
the company is in the midst of 
a massive expansion project. 

Mrs Nhan says the outlook 
for the market is rosy: “It’s 
now summer and if you go to a 
bar after about two o'clock hi 
the afternoon, they stop serv- 
ing because they have run out 
of beer.” 


In 3 months. 




passengers 






Simply because they want to fly betore they fly. 




Fust Trick is a new service wc introduced 
just over a year ago at Garvvick. First Class 
and Business Class passengers follow an 
exclusive, quick route through check-in, 
security control and immigration. 

Simple, practical steps to help 
Britain's export drivers drive taster. 

It was a welcome improvement, 

Heathrow < Gatwick < Stan 


too, because in the first quarter of this 
vear we have attracted over half a million 
business people to the airport. 

Over the next three years, we’U 
be spending about £1.4 billion at all our 
airports to improve passenger facilities, 
retail and catering areas and transport 
links. 

sted « Glasgow * Edinburgh 


We’ll continue to develop our 
international business, and to market the 
consultancy skills that are in increasing 
demand around the world. 

And we’ll be pursuing our major 
objective, which is to be the world’s 
most successful airport company, as well 
as a major national asset. 

Aberdeen * Southampton 


HICHLICHTS OF THE THREE MONTHS ENDED 
30 JUNE 1994 (UNAUDITED) 

Group revenue £305m up 4.8% 
Pre-tax profit £lllm up 11.0% 
Earnings per share 8.0p up 11.1% 
Passengers 22.1m up 6.0% 

baa ri ~ 

HELPING BRITAIN TAKE OFF 


t 


0 


4 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1W4 


★ 


NEWS: UK 


B Lottery logo unveiled M BBC prepares for £2m November draw 

Camelot names date for draw 



CctaBeont 

Fingers crossed: Tim Holley, chief executive of Camelot, reveals the National Lottery logo outside the British Museum, London 


DTI uncovers 
insolvency 
rule breaches 


By Raymond Snoddy 

The UK's first multi- 
miliion-pound National Lottery 
draw trill take place live on 
BBC television on November 
19, less than six months after 
the Camelot consortium was 
chosen as the preferred 
operator. 

The announcement of the 
launch date came yesterday as 
Camelot was formally awarded 
its licence by Mr Peter Davis, 
director-general of the National 
Lottery and the lottery opera- 
tor unveiled its logo - a smil- 
ing hand with crossed fingers. 

The logo, created by Saatc M 
& Saatchi Design and chosen 
from more than 100 designs, 
was claimed yesterday to rep- 
resent everything from fun. 
friendliness, enjoyment and 
approachahQity to hope, antici- 
pation, trust and honesty. 

On November 19, at the end 
of an light entertainment 
show, six numbered haik will 
be electronically selected from 
a total of 49. 

Anyone who has chosen the 
numbers in any order could 
win £2m although the odds are 
almost 14m to 1 against. 
Although the size of the prizes 
will normally be influenced by 
the number of £1 lottery' tick- 
ets sold in any week it is likely 
there will be a mmimiim jack- 
pot of £2xn for the first draw. 

The licence, which will ran 
until the end of September 


2001, closely follows the draft 
licence published last year 
except that the commitments 
made by Camelot when it 
applied for the licence have 
been incorporated. These range 
from the percentage of ticket 
sales that will go in prizes, to 
the percentages of revenues 
that will go to the five good 
causes to benefit from the 
National Lottery: the arts. 


charities, a millennium fund 
the national heritage and 
sport. 

The percentage of prize 
money before deduction of 12 
per cent lottery duty ranges 
from a low of 47.2 per cent of 
ticket sales in the 1995 finan- 
cial year ending March 31 to a 
high of 50.65 per cent the fol- 
lowing year. 

At ticket sales of between 


£750m to £L5bn a year the per- 
centage going to good causes 
will range from 21.66 per cent 
to 26.8 per cent. 

If the lottery has revenues of 
more than £3.5bn a year - 
which is thought to be possible 
- the good causes will get 
between 31.35 per cent and 
34.005 per cent. 

Camelot, which groups Cad- 
bury Schweppes. De La Rue. 


GTECH. I CL and Racal Elec- 
tronic s, said yesterday the 
project was on track for the 
November launch with 20 pan- 
technicons of furniture arriv- 
ing next week at its headquar- 
ters in Rickmansworth. Herts. 

Manufacture of the on-line 
computer terminals has begun 
and more than 8,000 of the 
10,000 retail outlets needed for 
the launch have signed up. 


By Andrew Jack 

Nearly 9 per cent of insolvency 
practitioners inspected by the 
Department of Trade and 
Industry in the past year seri- 
ously breached their obliga- 
tions under the law, a report 
said yesterday. 

Of 160 monitoring visits 
made in the 12 months to 
April, reports were produced 
on 14 which identified “signifi- 
cant compliance problems”. 

The problems, all of which 
have been referred to the rele- 
vant professional bodies for 
regulatory action, included 
sub-contracting of work with- 
out adequate controls and pay- 
ments for the introduction of 
insolvency work. 

In addition, a further six 
practitioners were subject to 
“detailed special inspections”. 
Eight practitioners were under 
inquiry at the end of the year; 
another has been charged with 
criminal offences and is await- 
ing t rial 

The details emerged in the 
annual report of the Insolvency 
Service, an executive agency of 
the DTI under the govern- 
ment’s Next Steps programme- 

other failures identified by 
the department included poor 
financial records and failure to 


keep adequate administrative 
records, including the approval 
of remuneration. 

The compliance failures 
come in spite of Initiatives 
over the past few months by 
the insolvency profession to 
develop a self-regulatory 
regime as a result of pressure 
from the Insolvency Service. 

There were 1,961 licenced 
insolvency practitioners in the 
UK last year, down from 1.993 
in 1992. They come under the 
control of seven professional 
bodies as well as some directly 
supervised by the Dm. 

Mr Peter Joyce, inspector- 
general and chief executive of 
the Insolvency Service, said in 
the report that it planned a 
further “significant increase" 
in the volume of prosecutions 
and disqualifications this year. 

The comments follow a 
highly critical report last year 
by the National Audit Office, 
the Whitehall watchdog. Into 
the relatively low volume of 

riisqiiaHnfffltin ng. 

Mr Joyce says the service 
“continued to struggle to 
achieve its targets'* in the face 
of a backlog of 57,000 uncom- 
pleted case files of collapsed 
companies and bankrupt indi- 
viduals being examined in the 
middle of last year. 


Eurotunnel set for 
passenger licence 


By John WTHman, 

Public Policy Etfitor 

The go-ahead for passenger 
train services to run through 
the Channel tunnel is expected 
very shortly, Eurotunnel said 
yesterday. 

The company said that It 
understood that the Anglo- 
French Intergovernmental 
Commission, which must 
approve passenger services, 
had met on Thursday to make 
its decision. 

Eurotunnel said It had com- 
pleted its presentations to the 
commission’s safety authority. 


which most satisfy Itself on 
the safety aspects of train 
operations In the tunnel, ear- 
lier in the week. Letters set- 
ting out the commission's deci- 
sion were expected very 
shortly. 

The company, which already 
runs freight services, wants to 
operate two types of passenger 
service: 

• Eurostar high-speed passen- 
ger services between London, 
Paris and Brussels. 

• Limited Le Shuttle passen- 
ger services between tunnel 
terminals at Cheriton in the 
UK and Sangatte in France. 


BCCI official convicted of profits fraud 


By John Mason, 

Law Courts Correspondent 

A former senior official with 
the collapsed Bank of Credit 
and Commerce International 
was convicted yesterday at the 
Old Bailey of helping dishon- 
estly to boost the bank's profits 

by £250m. 

Mr I mra n Imam, a former 
accounts officer based at 
BCCI’s London headquarters, 
was convicted of one charge of 
conspiring to conceal docu- 
ments, two of conspiring to fal- 
sify records or documents and 
one of furnishing false infor- 
mation. He was acquitted of 
one charge of furnishing false 


information. He was released 
on bail and will be sentenced 
next Wednesday. 

The conviction of Mr Imam 
marks the fourth successful 
prosecution brought by the 
Serious Fraud Office following 
its investigation into BCCL 

However the prosecution 
proved controversial, provok- 
ing the anger of US prosecu- 
tors in the New York District 
Attorney’s Office. They have 
relied upon Mr Imam as a main 
witness in the US trials and 
felt his conviction could taint 
his reputation as a possible 
witness. 

Mr John Moscow, the assis- 
tant district attorney, told a 


pre-trial hearing in London 
that because the US authorities 
believed the SFO would use Mr 
Imam as a witness - not put 
him on trial - they had given 
the SFO documents relating to 
Mr imam. The SFO denies giv- 
ing an assurance that Mr 
Imam would not be prosecuted. 

Mr Imam worked closely 
with Mr Swaleh Naqvi, the for- 
mer BCCI chief executive, and 
Mr Agha Hasan Abedi. its for- 
mer president 

He helped to boost the 
bank’s profits by falsifying doc- 
uments relating to loans total- 
ling S2bn apparently made by 
BCCI to wealthy customers. 
BCCI never intended these 


loans to be repaid but was able 
to claim it was receiving 
income in the form of interest 
and fees from the transactions. 

Mr Iman himself received 
interest-free loans from the 
bank which totalled £lm. 

Earlier this month the SFO 
secured the arrest of Mr Abbas 
Gakal, the head of the Gulf 
Group, the international ship- 
ping and trade conglomerate 
which was by far BCCTs larg- 
est customer. Mr Gakal was 
arrested at Frankfurt airport 
by German police after the 
SFO received reports that he 
had left Pakistan where he had 
remained, safe from extradi- 
tion, since 1991. Proceedings to 


extradite him to the UK have 
begun. 

The SFO is also considering 
bringing charges against Mr 
Naqvi. This will depend on 
events in the US where he is 
negotiating a plea-bargain deal 
with federal prosecutors. He 
was also sentenced to 14 years 
imprisonment by the Abu 
Dhabi authorities. 

Previous SFO prosecutions 
over BCCI have led to the con- 
victions of Mr Syed Ali Akbar, 
a former head of the bank's 
treasury department, Mr 
Mohammed Baqi, a former 
head of Attock Oil. and Mr 
Nazmu Virani, the former 
property entrepreneur. 


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INVESTORS 

T n T T S' T 


THE CITY INSIDE OUT 


Restructuring leaves video 
project chief without a job 


By Raymond Snoddy 

British Telecommunications 
baa broken up the division 
which helped to develop and 
promote video-on-demand, 
leaving its director Mr Steve 
Maine without a formal post. 

Mr Maine, who has been at 
BT for 20 years, ran the Visual 
and Broadcast Services divi- 
sion from 1991. The division 
was responsible for such activi- 
ties as video conferencing, sat- 
ellite data broadcasting and 
the provision of communica- 
tion networks for broadcasters. 

The development of video-on- 
demand, which also included a 
wide range of home services 
using the telephone network, 
was potentially the division's 
biggest project 

Technical trials of video-on- 
demand, sending VHS-quality 
pictures down telephone lines 


at the same time as the line is 
being used for conversation, 
are nearing completion. 

Marketing trials involving 
between 2,000 and 2,500 homes 
are due to start later this year 
or early next year. 

If BT decides to go ahead 
with what it calls interactive 
multimedia services the invest- 
ment would probably involve 
several billion pounds. Sophis- 
ticated computer databases 
would have to be installed at 
telephone exchanges. 

Earlier this year Mr Maine 
told delegates at a Financial 
Times conference: “If you are 
in the home-entertainment 
business, think beyond the 
existing boundaries of your 
industry - talk to us at BT." 

The video-on-demand project 
has now gone to ICE - the BT 
division responsible for infor- 
mation. communication and 


entertainment. Mr Rupert 
Gavin, a marketing director 
from retail group Dixons, has 
been brought in to, run the 
division. 

The appointment reflects the 
strategy of Mr Michael Hepher, 
BTs group managing director, 
to make the organisation more 
marketing-led. 

Mr Maine is said to be carry- 
ing out “a special project* and 
an announcement about his 
new job in BT is expected “in 
due course". 

Mr Maine, who is on holiday, 
was unavailable for comment 

BT satellite services will 
become part of the interna- 
tional communications divi- 
sion. Video conferencing will 
go to business communica- 
tions. BT emphasised that the 
restructuring did not mean any 
lessening of its commitment 
for interactive multimedia. 


P&O threat on 
animal welfare 


Glimmer 
issues writ 
against BT 
over rent 

By WIBiam Lewis 

Mr John Gnzomer. the 
environment secretary, yester- 
day issued a writ against Brit- 
ish Telecommunications claim- 
ing more than £2.2m in rent 
and interest 

Mr Gammer alleges that 
since Christinas Day, BT has 
failed to pay £2.im of rent for 
the 15 floors of the Enston 
Tower, in north-west London, 
that it leases from file depart- 
ment through an underlease. 

Mr Gammer also claims that 
BT, through two other under- 
leases, owes another £123,000 
for 50 parking spaces and 
rooms it rents in the tower's 
basement. 

The writ comes as BT, which 
has one of the largest corpo- 
rate property portfolios in the 
UK. presses on with plans to 
ent its holdings from 75m sq ft 
to 15m sq ft by 2010- 

A BT spokesman said he 
knew of “no connection 
between the writ and our prop- 
erty disposals". 

He added that the writ had 
not yet been served on the 
company. 

The Easton Tower is owned 
by British Land, 


By David Lascefles, 

Resources Editor 

P&O, one of the largest 
cross-Channel ferry companies, 
yesterday threatened to stop 
transporting vehicles carrying 
animals for slaughter unless 
European farm ministers 
agreed on improved standards. 

The company set next Octo- 
ber as the deadline for an 
“imminent prospect" of Euro- 
pean Union legislation to deal 
with the mounting controversy 
over conditions for live export. 

Lord Sterling, P&O chair- 
man, said last night that the 
company had acted after 
reviewing legislation on ani- 
mal transport standards. This 
had shown that there was "no 
way" these could be enforced. 

P&O's decision follows an 
increasingly vociferous cam- 
paign by animal -rights groups 
against the conditions in 
which sheep and cattle are 
transported to continental 
slaughterhouses. Animals 
often travel for several days in 
packed lorries without food or 
water. Last month, Mr Alan 
Clark, the former trade minis- 
ter and campaigner against 
animal cruelty, joined other 
activists in calling for a boy- 
cott of cross-Channel ferry 
companies which trans- 


ported animals for slaughter. 

Lord Sterling said that his 
decision to put pressure on 
government was not out of 
concern for the damage that a 
boycott might do to his com- 
pany. “It's deeper than that," 
he said. “There are certain sub- 
jects that go beyond commer- 
cial considerations.'' 

Mr William Waldegrave, the 
agriculture minister, said the 
government was determined to 
make progress on the issue 
without causing unfair disad- 
vantage to British formers. But 
"those urging precipitate 
action would do nothing to pro- 
tect travelling animals in the 
long term, and would impose 
an immediate damaging effect 
on a trade already going 
through a difficult period". 

He stressed that this was an 
EU-wide matter, and that the 
current German presidency 
had indicated that it would 
give it a high priority. 

EU rules currently permit 
animals to be transported for 
24 hours without a break. Lost 
June, the Greek presidency 
proposed to reduce this to 22 
hours for food and 15 hours for 
water, but the UK government 
rejected the plan. Animal 
rights groups have been press- 
ing for a maximum of eight 
hours. 


Swans 
bid ‘worth 
less 

than £5m’ 

The receiver to Swan Hunter, 
the Tyneside shipbuilder fac- 
ing closure, said yesterday that 
the price offered by the sole 
prospective bidder for the com- 
pany as a going concern was 
significantly below £5m, and 
substantially below the busi- 
ness's break-up value, Chris 
Tigbe writes. 

The comments from joint 
receiver Mr Ed James of Price 
Waterhouse underlined how 
poor the prospects now are of 
saving north-east England's 
last shipbuilder. Mr James said 
this week's bid from Construc- 
tions Mfecaniques de Norman- 
die was less than half the £10m 
figure discussed earlier this 
year. Swans' break-up value is 
understood to be about £7. 5m. 

CMN insisted its offer, 
including £5m relating to a tax 
loss deal, was worth £Um. It 
wants to negotiate not with 
Price Waterhouse but with 
Lloyds Bank, Swans' principal 
creditor. 

Speculation on 
Archer post 

Speculation mounted among 
Conservatives yesterday that 
Lord Archer, the party's for- 
mer deputy chairman, would 
be offered a government post 
after being cleared of insider 
dealing allegations. 

However friends of Lord 
Archer said the prime minister 
had not yet made any formal 
approach to the peer, who is 
one of the party's leading 
activists and fundraisers. 

Bank closure 
ruling to stand 

One of the owners of Mount 
Banking, the Asian-controlled 
bank closed by the Bank of 
England in 1992, yesterday lost 
his High Court appeal against 
the decision. 

Mr Navtnchandra Bhagwanji 
Shah claimed the decision by 
the Banking Appeal Tribunal 
last year to uphold the Bank of 
England's decision was unjust 
and that the Bank's original 
judgment was perverse. 

Theme park 
convictions upheld 

Three businessmen jailed for 
fraud after the longest criminal 
trial in English legal history 
failed yesterday in appeals 
against their convictions. 

The Court of Appeal rejected 
argument that the 253-day Brit- 
tania Paris trial was so long 
and complex that the jury 
must have been unable to con- 
centrate sufficiently to reach a 
safe and satisfactory verdict 
Mr Peter KeHard, Mr Edward 
Dwyer and Mr John Wright 
former chairman of the Derby- 
shire theme park, were con- 
victed in 1992 of offences 
including fraudulent trading. 

Nirex files 
waste site plans 

Nirex, the nuclear waste dis- 
posal company, yesterday filed 
its long-awaited planning 
application with Cumbria 
county council for a £120m 
rock laboratory beneath the 
Sellafield site, a step towards 
its proposed £2bn underground 
waste repository. 

The laboratory is needed for 
a geological study of the site to 
enable Nirex to decide whether 
the repository should be built 

Three jailed for 
fraudulent trading 

Three businessmen were yes- 
terday jailed for fraudulent 
trading at Extra Special 
Vehicles, based at Banbuzy, 
Oxfordshire, which, collapsed 
in 1990 with £6m debts. 

Mr Robert Caiman. ESV 
chairman, and Mr Moshe Hoch- 
enberg, finance director, were 
both jailed for three years. Mr 
Robert Knight, a financial 
adviser, was jailed for 4V» 
years. 

They had been convicted fol- 
lowing a 12-week trial at 
Northampton Crown Court. 

Case on Bar lost 

Four students denied places to 
train as barristers yesterday 
lost their legal battle in the 
Court of Appeal over the new 
selection criteria adopted by 
the Bar law school, which Is 
run by the Council for Legal 
Education. They had argued 
the school paid too little atten- 
tion to degree results. 

Hospital plea fails 

Campaigners yesterday failed 
to prevent the closure of the 
accident and emergency unit 
at London’s St Bartholomew's 
hospital. The Court of Appeal 
refused leave to appeal against 
the High Court’s rejertton of 
judicial review proce ed i n gs. 





FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


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FINANCIAL TIMES WEEK-END JULY 30/JULY 3 i 1994 


NEWS: UK 


Court move 


on ‘pirate’ 
TV card ban 


Society man signs up for the club 

The IoD’s new director-general is determined to make his mark, says Michael Cassell 


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By Raymond Snoddy 


A leading distributor of 
“pirate" satellite television 
cards is going to the High 
Court next week to try to win 
the right to sell the cards in 
the UK 

Mr David Lyons wQl ask per- 
mission to withdraw a volun- 
tary undertaking not to distrib- 
ute the cards in the UK which 
he ma d e pending the full hear- 
ing of an action launched 
against him by British Sky 
Broadcasting. BSkyB said yes- 
terday it would vigorously 
resist any attempt to withdraw 
the undertaking. 

The High Court hearing fol- 
lows an action in the Irish 
courts in January when BSkyB 
- a consortium in which Pear- 
son, owner of the Financial 
Times, has a stake - was 
refused a restr ainin g order 
against Mr Lyons pending a 
frill triaL 

BSkyB claimed its code had 
been copied by Mr Lyons, 
infringing its rights under 
copyright law. The court 
rejected the claim because 
BSkyB had failed to produce 
sufficient evidence that there 
had been an infringement of 
copyright Mr Lyons is seeking 
to raise the same issues in the 
High Court 

He said yesterday: “If I win I 
will be able to sell cards out- 
side News Datacom [the News 
Corporation subsidiary that 
manufactures the smart cards 
for Sky Television].” BSkyB 


knocked out all the pirates in 
May when it distributed new, 
more sophisticated cards, 
known as the series nine cards, 
to more than 3m subscribers. 
Overnight, viewers with pirate 
cards were unable to watch 
subscription channels. Since 
then, the pirates have been 
working to beat the new 
BSkyB smart cards. 

Mr Lyons said yesterday be 
now had a card that that 
would decode all BSkyB chan- 
nels and planned to start sell- 
ing them in Ireland next week. 

Last year the Financial 
“nines wrote to Mr Lyons' com- 
pany Satellite Decoding 
Systems and bought a pirate 
decoder card which worked 
perfectly. 

A number of other systems, 
pirates claim, are about to 
come on the market. One, 
called Phoenix, can reactivate 
cancelled cards. Others, it is 
claimed, can upgrade legiti- 
mate basic BSkyB cards so 
that they can receive every 
channeL The basic package 
costs £659 a month - the 
entire package, £19 5a 

BSkyB executives privately 
express scepticism that the 
new card has been cracked by 
pirates. 

BSkyB and News Datacom 1 
Insis t that they will continue 
to take a wide range of legal 
and technical measures against 
the pirates. Distributing or 
using pirate subscription tele- 
vision cards is illegal in the 
UK 


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Tim Melville- Ross: impatient with the IoD’s image as a bolt-hole 
for unreconstructed rightwingers Photograph: Tony Andrews 


As the busy boss of a £35bn 
business. Mr Tim Melville-Ross 
could be forgiven, for not get- 
ting around to joining the 
Institute of Directors. 

But he has been wise enough 
to sign up in good time for his 
arrival on Monday as the insti- 
tute's new director-general 

The one-time stockbroker 
and oil industry man who, for 
the past 10 years, has been 
chief executive of the Nation- 
wide Building Society, admits 
to finally enlisting only after 
the £i80,000-a-year loD job 
came up - but before he knew 
he would get it 

He confessed: “By the time 
anyone asked me if I was a 
member I was able to answer 
“yes’ truthfully." 

Eyebrows have been raised 
about his readiness to step 
down from the top of Britain's 
second-largest building society 
to run what gnrn g in the busi- 
ness community regard as lit- 
tle more than a fancy club 
with grand ideas. 

Mr Melville-ROSS QT pIairteri- 
“I said when I became Nation- 
wide chief executive I would do 
it for 10 years. It was enough 
for me and enough for the 
Nationwide. 

“I did not then want to go 
and run another business in a 
narrow sense and was looking 
for something which involved 
participating in the political 
process." 

Mr Melvfl] e-Ross is keen to 
angagp m public -policy debate 

and then to act as a forceful 
advocate for IoD views. At 49, 
he takes over at the Pall Mall 
headquarters from Mr Peter 
Morgan, a fiery, free- market 
salesman who relished the 
opportunity to make waves. 

His successor is a more con- 
sidered, consensual, low-key 
sort of chap who. nevertheless. 


Is determined to leave his 
mark on an or^nisation which 
he accepts may be widely mis- 
understood and under-rated. 

The new director-general, 
although anxious not to criti- 
cise his predecessor, appears 
impatient with the lingering 
image of the IoD as a bolt-hole 
for unreconstructed right- 
wingers. He intends it to be 
seen as a serious champion of 
free enterprise and business 
integrity with views that 

He added: “The rightwing 
label is much abused. It is no 
longer a rigfatwing proposition 
to say wealth creation is a 
good thing, provided you cre- 
ate it within a defined set of 
civilised values. 

“It is not rightwing to say 
the idea of full employment is 
nonsense. In the same way you 
have to have empty homes to' 
make the housing market 
work, you need a stock of 
unemployed people to make 
the labour market work." 

Pursuing his thesis, Mr 
Melville-Ross said his wish to 
see the education system fur- 
ther “privatised” was not a 
rightwing stance. 

“I think it is wrong for some- 
one in my financial position to 
have my children’s university 
education subsidised by people 
for less able to afford it than 
me- If that view is rightwing 
than Pm a Dutchman." 

Mr Melville-Ross stressed 
that he has never been “a rav- 
ing Conservative or socialist or 
whatever", but he has long 
experience of nndging ministe- 
rial elbows. 

Cuddling up to a particular 
administration, he stressed, 
can have its drawbacks, so con- 
tads will be made across the 
political spectrum. If a Labour 
government is elected, he will 


start on good terms with sev- 
eral of its senior figures. 

Mr Melville-Ross acknowl- 
edged unflattering compari- 
sons with the Confederation of 
British Industry - the employ- 
ers’ body with which he 
intends to forge closer links - 
hut denied that the IoD is less 
in touch wife business or less 
influential with government. 
He added: "We should not. In 
any case, view each other in a 
competitive way. If it is possi- 
ble to develop similar positions 
on key policy areas, then that 
will be a very powerful combi- 
nation." 

The IoD, be emphasised, is 
not about to embark on a root- 
and-branch overhaul of policy. 
q}thrm pb he given himself 
and his colleagues three 
months to review it Then, he 
said, the organisation will have 
to present its views in "a more 
coherent way”. 

He hinted that he might 
want a more streamlined 
policy-making process and, 
without uttering any threats, | 
said he intends to run a “very . 
crisp” organisation. 

Mr Melville-Ross accepts that 
he comes to the job at a time 
when the reputation of the 
business community has *»k»n 
some tough knocks. He largely 
rejects the image of directors 
as “grasping and overpaid", 
although he has no time for 
rewarding failure. 

“I have no problems at all 
with giving very high rewards 
for success that helps create 
wealth and which, in turn, sus- 
tains businesses and jobs," he 
said. "But we have to find 
ways of avoiding situations 
whore someone who has mani- 
festly foiled walks away wife 
half a million pounds. It has to 
be wrong and it has to be 
stopped" 


Kinnock to press for end to Maastricht opt-out in EC role 


By Ivor Owen, 

Parliamentary Correspondent 


Britain will come under increased 
pressure to participate in the social 
chapter of the Maastricht treaty 
from Mr Nell Kinnock. whose 
appointment as a British member of 
the European Commission was con- 
firmed yesterday. 

The former Labour leader angered 
Tory MPs by immediately making 


known his intention to seek to over- 
tom the opt-out secured by Mr John 
Major, the prime minister, from the 
regulations that can be imposed on 
employers from Brussels. 

Mr Kinnock’s appointment to the 
£103,000-a-year post was welcomed 
by Mr Tony Blah, the new leader of 
the Labour party. 

Mr Blair said: “He will be a great 
asset both to Britain and Europe and 
I wish him every success." 


Mr Kinnock explained why he 
would back the demands that 
Britain should keep in line with the 
other member states of the Euro- 
pean Union by accepting the social 
chapter. He said: “It is a modest way 
of defining basic standards for work- 
forces." 

He emphasised that there were 
several countries and many employ- 
ers in Europe who took strong 
exception to the possibility that, 


while free from the obligation to 
comply with the social chapter. 
Britain would become a place for 
“social dumping". 

Mr Kinnock said: “My general dis- 
position is to seek to ensure that 
none of the employers in the EU are 
disadvantaged in their relationships 
one with the other.” 

Sir Leon Brittan, the former Con- 
servative cabinet minister, will con- 
tinue as Britain’s senior representa- 


tive at the European Commission. 

The government is expected to 
exert strong pressure in Brussels to 
ensure that Mr Kinnock’s role in the 
commission covers overseas develop- 
ment - a policy area in which he has 
always been closely interested. 

Mr Kinnock’s wife, Glenys. 
became one of the Welsh Labour 
members of the European parlia- 
ment in June. 

Mr Kinnock 's departure from 


Westminster will necessitate a 
by-election in his Islwyn constitu- 
ency, a Welsh Labour stronghold, 
which he has represented since 3963. 
He had a majority of 24,728 at the 
last election. Before that he repre- 
sented fee former Bedwellty division 
from 1970. 

Mr Kinnock was leader of the 
Labour party for nine years, resign- 
ing in 1992 after its fourth successive 
general-election defeat. 


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MPs will 
investigate 
opening of 
gas market 


New car sales 
‘set to beat 2m’ 


By John Bffiihs 


By Robert Corzine 


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...you need to know what's happening in 
Europe's largest emerging market. 


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Financial Times (Europe) GmbH, Nibelungenplatz 3, 60318 FRANKFURT MAIN 1, 
GERMANY, or fax it to Eva on +49 69 596 4483. 


The trade and Industry select 
committee yesterday 
announced feat It will hold an 
inquiry into the planned 
deregulation of the domestic 
gas market. 

The announcement came 
amid growing doubts in the 
gas industry feat the govern- 
ment is still committed to the 
plan It announced last Decem- 
ber to phase in domestic com- 
petition, beginning in 1996. 

The inquiry, which will start 
immediately after parliament 
returns from its summer 
recess, will examine “the tim- 
ing the imwiw of opening 
up the domestic gas market to 
competition". 

It will also look at the possi- 
ble Impact of competition on 
gas prices for various types of 
consumer. Safety, security of 
supply and standards of ser- 
vice will also be examined. 

Ofgas, the industry’s regula- 
tor, said it did not expect the 
parliamentary inquiry to 
affect Its effort to develop 
detailed plans to open up the 
residential market to competi- 
tion. 

The Gas Consumers CouncO 
welcomed fee announcement 
Mr Ian Powe, fee council’s 
director, said it should make 
fee present consultation pro- 
cess between the government, 
the regulator and industry < 
more open. 


The Retail Motor Industry 
Federation, representing the 
UK’s 7,000 franchised dealers 
and other independent motor 
traders, yesterday raised its 
forecast lor new-car registra- 
tions this year to more than 
2m. 

The first 2m-phis projection 
to be made by a big industry 
association came as dealers 
were engaged in a flurry of 
activity to deliver the first 
M-reglstered cars to customers 
when fee plate becomes legal 
at midnight on Sunday. 

The federation’s latest figure 
of 2.01m units compares wife 
its previous forecast of 
between 1.8m and 1.9m. The 
Society of Motor Manufactur- 
ers and Traders, the largest 
trade and lobby organisation, 
is predicting 135m. 

The federation’s upward 
revision, the second this this 
year, reflects consistent buoy- 
ancy in fee marketplace - but 
also “intensive marketing 
activity by manufacturers and 
dealers", said Mr Nell Mar- 
shall, the federation’s policy 
director. Mr Marshall said the 
activity was expected to 
“force" registrations beyond 
fee 2m mark. 

The federation would not 
clarify Mr Marshall ’s remarks, 
but it is understood to have 
concluded that manufacturer 
pressure to "move metal" is 
exaggerating the true sire of 
the market through dealers 
pre-registering cars without 
buyers, and which may be 


later have to be sold as 
“nearly-new" vehicles through 
auctions and other outlets. 

Registrations in fee first half 
of this year have already 
reached 956,000 and the society 
has predicted 500,000 registra- 
tions for August - in spite of a 
survey commissioned by 
National Breakdown showing 
more than half of motorists 
want the annual registration 
change scrapped. 

The survey found that 34 per 
cent of motorists considered it 
an “excuse" for the trade to 
increase prices, and 27 per cent 
viewed it as an “exercise in 
snobbery”. 

Of fee 500,000 August regis- 
trations expected, manufactur- 
ers’ order books for companies 
such as Citroen, Peugeot and 
Volkswagen indicate that more 
than 100,000 of the total will be 
diesel cars, confirming their 
status as fee fastest-growing 
sector of the car market 

According to Citroen, on 
same of its model ranges such 
as the ZX estate, diesel ver- 
sions are outselling their petrol 
equivalents. 

In a further survey by Vol- 
keswagon, in which 63,000 car 
owners were questioned. io per 
cent were found to drive diesel | 
cars - but 30 per cent said they 
would be buying a diesel when ; 
their car was replaced. I 

More than 340,000 diesel cars : 
were sold in fee UK last year. 

• Rolls-Royce Motor Cars is 
ending production of its 
£170,000 Comiche convertible 
and similar Bentley Continen- 
tal models after 23 years. 


Agency !$) 
chiefs 
dual role 


dr 


rapped 


MPs yesterday admonished 
ministers for the way they han- 
dled a potential conflict of 
interest over fee government 
agency which regulates food • . 

imports, James BUtz writes. . r J I W I 

The Commons agriculture iffi > i I-’* 
committee expressed concern.! 1 
In a report that a conflict of , 
interest could have arisen over i ' \ S 
the role of Mr John Ellis, the f 4 
chief executive of Fyffes, the - , 

banana importer, who is also * (- j f |{*| 
chairman of the Intervention M 1 1 5 i 1 v 

Divird PvoniHuA imnni • 1 


Board Executive Agency. 

Mr Ellis has chaired the 


Intervention board for the past 

pjpht VRars. The hoard which M 


eight years. The board, which 
is operated by the Ministry of 
Agriculture, Fisheries and 
Food, adminis ters the Common 
Agricultural Policy in the UK 
and issues licences for food 
export and import. 

The potential conflict of 
interest over his role arose last 
year when the board was 
required to license banana 
Imports following a European 
Union directive. The commit- 
tee said that this appeared to 
place Mr Ellis in an “awkward 
position", as the Fyffes group 
is one of the largest importers 
of bananas. 

The committee said yester- 
day feat it did not allege “any 
impropriety whatsoever” 
against Mr Elhs. It also noted 
that his job “floes not involve 
him in day to-day operations of 
the agency”, which has also 
ensured tb”* Mr Kin* does not 
see confidential papers relating 
to regulation of the banana 
sector. 

However, the committee said 
it was “absolutely unaccept- 
able" that a chairman of the 
intervention board should be 
in a position where he was 
excluded from the operations 
of the organisation in an 
important sector. 

The MPs added: "We recom- 
mend that [the ministry] take 
steps to ensure that the prob- 
lem is swiftly rectified and that 
no such potential conflict of 
interest occur In senior posi- 
tions in the foture.” 


\ ear 


Confusion over 
compliance move 


Fimbra, the self-regulatory 
body for financial advisers, has ' 
become involved in an appar- ' 
ent misunderstanding wife one - 
of its members - Knight Wli- • 
hams - over the need for stron- 
ger compliance measures. 

The regulator said it had 
suggested that Knight Wil- 
Items’ compliance function ; 
should be strengthened wife a :• 
senior appointment that had - 
its approval. 

However, Mr John Williams, 
Knight Williams managing . 
director, said the recent 
app ointment of Mr Colin Pin- ■' 
nail, formerly head of legal ser- 
vices at Fimbra, to ovflrsee its 
legal and compliance depart- - 
rnmit l wd “nothing to do wife - 
any suggestion from Fimbra,” ' 
which had “never said to us 
that we ahquiri strengthen our 
team”. 

Weekend FT, Page m . 


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Take-up of Family 
Credit tops 500,000 


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More than 500,000 families are 
now claiming Family Credit, . 
the benefit paid to people on ■ 
low wages who look after chfl- . 
dren, the Department of Social 
Security said yesterday. 

Its figures show 521,320 fami- J* 
lies were receiving Family] 
Credit in January, 56,000 more 1 
than fee year before. 

The average amount paid 
has risen by more than £3.70 a |1 
week to over £46 a week. i 1 


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Civil Service jobs 

The new director of the Trea- 
sury’s procurement group is to 
be Mr Neil Deverill. a senior 
vice-president of AB Electro- 
lux. Mr Charles Masefield is to 
become head of defence export 
services at the Ministry of 
Defence, cm secondment from 
British Aerospace. 


Ory 

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del 


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Group 4 to run middle-risk prison 


By Alan Pike, 

Social Affairs Correspondent 


Group 4, the security company, 
increased its strong position in 
Britain’s emerging private 
prison market by winning the 
contract to run Buckley Hall 
prison at Rochdale, greater 
Manch ester, yesterday. 

Buckley Hall will house 350 
medium-risk category C con- 
victed prisoners, helping to 
ease pressure on prison spaces 
in the north-west Group 4 
already runs Wolds prison on 
Humberside and operates fee 
service escorting prisoners to 
court in the east Midlands and 
Yorkshire. 

The contract win be worth 


£S3m over five years. Group 4’s 
bid, which was not the lowest 
was selected over three others 
from the private sector and a 
fourth from an in-house public- 
sector team. 

Mr Derek Lewis, director- 
general of fee prison service, 
confirmed feat fee In-house bid 
had been “very good", and Ms 
Joan Ruddock, shadow home 
affairs minister, immediately 
wrote to the government ask- 
ing why it had been rejected. 

She said: “Only last month 
fee Commons public accounts 
committee discovered that 
Group 4’s running of Wolds 
was costing Elm more than 
its original tender, yet today 
the government rewards 


the same private interests.” 

Mr Lewis said fee Prison Ser- 
vice had been spoilt for choice 
by the bids. 

Growing experience of ten- 
dering to manage prisons was 
now generating high-quality 
bids from both the private and 
public sectors. 

Buckley Hall, a former Junior 
detention centre, has been 
rebuilt In less than a year to 
rehouse adult prisoners - mak- 
ing ft Britain's fastest-built jail 
in modern times. It will open 
in December, and create 150 
full-time jobs. 

The award of the Buckley 
Hall contract marks the start 
of a further phase of market 
testing of prison management 


and advancing private-sector 
Involvement 

Invitations to tender for two 
big prisons to be built in Liver- 
pool and south Wales have just 
gone out. 

The private sector is being 
asked to finance, fladgn, build 
and manage these projects, and 
private prison operators are 
linking with construction com- 
panies to prepare bids - Group 
4 wifi be bidding in conjunc- 
tion with Tannac. 

The government also plans 
to ask the private sector to bid 
to manage some established 
public prisons; the first one or 
two prisons selected for this 
process will be named in the 
autumn. 


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FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


7 





NEWS: UK 


^Lloyd’s poised to scrap three-year accounting 


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By Andrew Jack 

Lloyd '8 of London yesterday 
It signalled the probable end of the 
archaic requirement for underwrit- 
ing syndicates to report their results 
over a three-year period. 

The corporation said it was consid- 
ering removing the flnanriq i prac- 
tice which is linked to nautical tra- 
ditions as old as the 300-year old 
insurance market itself. 

The move is partly a symbolic 


modernisation but is also likely 
to have widespread implications In 
releasing profits more quickly 
to both corporate capital and 
Names, the individuals whose 
have traditionally supported the 
market. 

The practice of using three-year 
accounting periods for syndicates Is 
rooted In the origins of Lloyd's, 
which derived its business from 
insuring trading ships on voy- 
ages around the world. 


Three years was the time it took 
before ocean-going vessels returned 
to dock in England, at the end 
of which underwriters would know 
for certain the size of any claims 
on which they were expected to 
pay. 

Since then the range of insurance 
activities underwritten at Lloyd's 
has diversified and the reasons for 
the practice have been lost in 
history. 

Lloyd's said yesterday: “A three- 


year return voyage to the Spice 
Islands can’t really be equated 
with an aircraft cr ash or the sales 
rep driving around the M25 in a 
car." 

The Lloyd's market and regulatory 
boards have both in principle agreed 
to allow syndicates to reduce the 
three-year accounting period to two 
years. 

A further progression to one-year 
accounts - in line with the practice 
of most companies and other organi- 


sations which issue financial state- 
ments - is likely to follow. 

The modification still requires the 
approval of the Lloyd's Council, 
which meets next Wednesday, and 
further details are likely to be 
released by October. 

Under the changes - which will be 
voluntary - an Interim payment 
from the 1993 underwriting year 
could be paid during 1995. 

The first two-year accounting 
cycle would start with the 1994 year. 


allowing it to dose at the end of 1995 
with profits distributed during 1996. 

The result would be that loss- 
making Names would be able to off- 
set their outstanding losses more 
quickly against profits generated by 
the syndicates of which they are 
members. 

Some predictions suggest that 
across the market there will be mod- 
est losses in 1992 but that 1993 Is 
likely to be profitable after several 
years of heavy losses. 


Terrorist 
targets 
identified 
last year 

By Jimmy Bums 

A security report identifying 
London's "embassy row", 
which includes the Israeli 
embassy, as a prime potential 
target for a car-bomb attack 
was given to the royal house- 
' hold and to the Metropolitan 
Police at the end of last year. 

The 100-page risk analysis, 
which detailed the resnrghig 
threat of fundamentalist 
groups opposed to peace 
moves in the Middle East, was 
prepared by one of Britain's 
leading anti-terrorist experts. 

It was commissioned by offi- 
cials working for the royal 
family as part of a security 
review of the state depart- 
ments of Kensington Palace, 
which is situated near the 
Israeli embassy. 

The report's author, Major 
John Wyatt, was a serving 
officer in Ulster. His private 
company, Search Training 
International, has advised 
businesses on protection 
against terrorism and on secu- 
rity for the Crown Jewels. 

Maj Wyatt said this week 
that he had been concerned 
about security being relaxed 
prior to Tuesday’s bomb at the 
Israeli embassy. However he 
added that in his view "no 
degree of risk analysis" could 
have prevented the attack. 

Nevertheless news of the 
report's existence will he an 
embarrassment to security 
officials who have been critic- 
ised by the Israeli government 
for ignoring requests for addi- 
tional security after the July 
18 bomb attack on the central 
Jewish community building in 
Buenos Aires which killed at 
least 96 people. 

Scotland Yard would not 
comment on the report but a 
police official expressed sur- 
prise that a risk analysis for 
Kensington Palace on such a 
sensitive subject should have 
been commissioned from a pri- 
vate consultancy and not from 
the police or the intelligence 
agencies. 

The report does not specifi- 
cally refer to the Israeli 
embassy. However it Identifies 
the growing threat of terror- 
ism by Iran and by fundamen- 
talist groups opposed to the 
Middle East peace moves. 

According to the analysis, 
the threat had shifted from the 
US to Europe following the 
bomb attack on New York's 
World Trade Centre. 

Predictions of an upsurge in 
fundamentalist terrorism do 
not appear to have been 
shared by M15 and MI6, the 
intelligence agencies. Both 
appear to have focused their 
attention on the threat posed 
by the IRA. • 



Eric Britt, master of the Worshipful Company of Carmen, at the. awmnni cart-marking ceremony in the City yesterday. Hie 
Corporation of London bas traditionally exercised a right of jurisdiction over carts for hire in the City Photograph: Ashley Ashwood 


Big increase in 
purchase index 


By PhSp Coggan, 

Economics C o rrespondent 

The prices paid by 
manufacturers for materials 
are rising sharply, according to 
the latest purchasing manag- 
ers’ index, increasing fears 
that inflation may be set to 
accelerate. 

The purchasing managers' 
index, produced by the Char- 
tered Institute of Purchasing 
and Supply, reached a record 
seasonally adjusted level of 
62J2 per cent in July, from 61.3 
per cent in June. The institute 
seasonally adjusted the index 
for the first time in July - had 
it not done so, the index would 
have recorded a small fall 

The index is a weighted aver- 
age of several factors such as 
order books, delivery times and 
prices. Any figure above 50 per 
cent indicates an increase in 
activity over the previous 
month. The repeated highs 
achieved by the index suggest 
that economic activity has 
been strengthening this year. 

However, the strength of the 
economy is causing some 
capacity constraints and price 


pressures. Suppliers' delivery 
times are lengthening as they 
struggle to fulfil new orders. 
This in turn is putting upward 
pressure on prices. The prices 
component of the index 
reached a record high in July, 
with a price increase on items 
such as paper, packaging, tim- 
ber. aluminium, methanol and 
steel products. 

The Confederation of British 
Industry's quarterly trends 
survey, published earlier this 
week, also showed evidence of 
inflationary pressure, with an 
increase in the number of com- 
panies planning to raise prices. 

However, Mr Ian Shepherd- 
son, UK economist at Midland 
Global Markets, downplayed 
the significance of the price 
findings, “It tracks producer 
input prices rather than output 
prices. All it is telling us is 
that commodity prices have 
gone up, which we knew 
already." 

The institute, which inter- 
viewed purchasing manag- 
ers, also reported that output 
is at its highest level since July 
1991, and that recruitment rose 
this month. 


Pension 
members 
win costs 
ruling 

By John Mason, 

Law Courts Correspondent 

Members of pension schemes 
taking legal action over alleged 
mis han dlin g of fund assets 
were placed in a stronger posi- 
tion yesterday by a Court of 
Appeal ruling that they can. be 
awarded costs from pension 
funds before cases reach court 

Three judges upheld a High 
Court decision granting a "pre- 
emptive costs order" to the 
beneficiaries of the pension 
scheme run by Melton Medes, 
a trading conglomerate. 

The members allege fund 
assets were improperly han- 
dled when a £5m loan was 
made from the fund to the 
company and later repaid. 
They are cla iming £7m com- 
pensation. 

The members have argued 
they could not pursue their 
case without the costs order 
applied for after their union, 
the Graphical Paper and Media 
Union, had to stop funding the 
action. 

In reaching their decision 
the judges made clear they 
were responding to concerns 
expressed by the Pension Law 
Review committee headed by 
Professor Roy Goode. The com- 
mittee had called on the judi- 
ciary to set dear guidelines for 
pre-emptive costs orders for 
pension case litigants. 

Concern has centred on the 
inability of pension fund mem- 
bers to bring legal action when 
they are ineligible for legal aid. 

Lord Justice Hoffman 
warned their decision might 
not be confined to pension 
cases and could have implica- 
tions for all trust litigation. 


MPs urge more 
economic debate 


By David Owen 

Senior Tories are a dding their 
weight to Labour calls for the 
government to earmark more 
time for debating economic 
issues as part of a package of 
parliamentary reforms. 

Sir Terence Higgins. MP for 
Worthing and chairman of the 
liaison committee of select- 
committee chairmen, is wor- 
ried that the move to a unified 
Budget has resulted in fewer 
appearances before MPs by Mr 
Kenneth Clarke, the chancel- 
lor. 

Sir Terence, a highly 
respected senior backbencher, 
used a recent Commons debate 
to say that he could not 
remember an occasion in the 
last 30 years when a chancellor 
bad gone as long as seven 
months without addressing the 
Commons. 

He described the more to a 
unified Budget as “pretty 
disastrous" in procedural 
terms. "As a result of that 
change, opportunities to debate 
the most important area of pol- 
icy - economic policy - hare 
been seriously eroded." Sir Ter- 
ence said. 

His comments come as talks 
between the two main parties 
aimed at coming up with a 
package of procedural reforms 
are said to be making head- 
way. Mr Tony Newton, the 


Commons leader, told MPs 
before the summer recess that 
"good progress" on identifying 
a package of reforms had been 
made - although "a good deal 
of detailed work remains to' be 
done". 

His feelings were echoed by 
Mr Nick Brown, his Labour 
opposite number, who said he 
hoped proposals could soon be 
put to MPs "that may well 
apply in the next session". 

The number of late-night sit- 
tings and tiie format of prime 
minister's questions are under- 
stood to be among the subjects 
the two sides are discussing. 

The reform initiative fol- 
lowed a caD by Mr John Major, 
the prime minister, last month 
for some of parliament's anti- 
quated procedures to be over- 
hauled. 

• The government is hoping 
to introduce a controversial 
bill increasing Britain’s contri- 
bution to the European Union 
budget earl; in the next parlia- 
mentary session, starting in 
November, having been pre- 
vented from legislating in the 
last session by a dispute in tbe 
EU Council of Ministers. 

The bill - giving force to 
changes in tha EU*s funding 
system in line with the agree- 
ment at the Edinburgh Euro- 
pean Council in December 1992 
- is almost certain to be 
opposed by Tory Euro-sceptics. 


Tory managers plan to 
avert defeats in Lords 


By David Owen 

Government business 
managers plan a thorough 
overhaul of consultation and 
information-gathering in tbe 
House of Lords in an effort to 
curb embarrassing defeats. 

By keeping its ear close to 
the ground, the energetic - 
and surprisingly youthful - 
n?w government team in the 
upper house hopes to make 
sure that potential flashpoints 
are identified early and 
defused before they become 
headline news. 

The initiative follows a ses- 
sion during which peers sav- 
aged the cr iminal justice bill 
and other measures. 

Last week's ministerial 
reshuffle included sweeping 
changes in the upper house. 
Lord Cranbome, 47. replaced 
the 62-year-old Lord Wakeham 
as Lords leader and five of the 
seven posts in the government 
whips' office changed hands. 

Lord Strathclyde. 34, the new 1 
chief whip, has served in four 
government departments. The 
Earl of Arran. 56, the new dep- 
uty chief whip, is also an expe- 
rienced minister. 

An early signal that Lord 
Cranbome is likely to devote 
more time than his predecessor 
to hands-on management of 


Further details of new 
ministerial responsibilities 
were announced yesterday. 

At tbe Department of Trans- 
port Mr John Watts will cover 
all railway issues and road 
infrastructure policy including 
the Highways Agency. Mr Ste- 
ven Norris will be responsible 
for London transport., local 
an d urban transport nation- 
wide, and road and vehicle 
safety. He will also handle avi- 
ation and shipping matters in 
the Commons. Viscoant Gos- 
chen will be responsible for 
aviation, airports and all 


marine and shipping matters. 
He will handle all the depart- 
ment’s business in the Lords. 

At the Department of Trade 
and Industry the following are 
to assume responsibility for 
industrial issues in the 
regions: Lord Ferrers -.East 
Anglia and east Midlands: Mr 
Richard Needham - west Mid- 
lands; Mr Tim Eggar - south- 
east and south-west; Mr Neil 
Hamilton - north-west and 
Merseyside; Mr Charles 
WardJe - the Yorkshire area 
and Humberside; and. Mr Ian 
Taylor - north-east 


the upper house came last 
week when Downing Street 
announced that Mr David 
Hunt chancellor of the Duchy 
of Lancaster, would become 
chai rman of many of the cabi- 
net committees previously led 
by Lord Wakeham. 

Among possible plans is the 
introduction of a more struc- 
tured wav for backbench peers 
to get access to the leader of 
the house and the chief whip 
over specific grievances. 

By adopting a more rigorous 
approach than has been needed 
in the past, business managers 
hope to ensure that Ton - peers 
t hink long and hard before vot- 
ing against the government. 


Some experienced Lords 
observers expect the authority 
of the new team to be 
enhanced by the fact that both 
the house leader and the chief 
whip are hereditary peers. 

They say some peers were 
resentful that so many recent 
Lords leaders have been rela- 
tively recent arrivals from the 
House of Commons. 

• Mr Tim Sainsbury. the MP 
for Hove for more than 20 
years, is to leave the Commons 
at the next election. 

Mr Sainsbury had a majority 
of 12.268 over Labour at the 
last election. He resigned as 
industry minister in the 
reshuffle last week. 


BAA pic results for the three months 

ended 30 June 1994 


3 months to 3 months to change 
30 June 1994 30 June 1993 % 

(unaudited) 


Passengers 

22.1m 

20.8m 

+6.0 

Revenue 

£305m 

£29 lm 

+4.8 

Pre-tax profit 

£11 1m 

£100m 

+11.0 

Earnings per share 

(after one for one capitalisation issue) 

8.0p 

7.2p 

+ 11.1 


Pre-tax profit was £lllm. Up 11%, with revenue of £305m, up 4.8%. 
The financial performance reflects strong traffic growth together 
with increased retail income and unproved property income. The 
Company continued to keep tight control of its operating costs and 
productivity improved by 5.7%. 

Passenger numbers increased by 6% with particularly strong 
growth in the charter and long haul markets. Revenue from 
airport charges was £117m, a rise of 5.6%. The Company is fore- 
casting traffic growth of between 5% and 6% for the year as a whole. 

Retail revenue rose to £125 m, up 8.5%, despite sales con- 
tinuing to be held back by disruption from the redevelopment of 
facilities at the airports. Where new facilities have been completed 
growth is higher. In Terminal 4 retail revenue grew by 14.1% and 
by 73% per passenger and in Terminal 3 where the phased 
redevelopment was recently completed, growth is 16.8% for the 


three months and 4.4% on a per passenger basis. 

Airport property income rose by £4m to £40m reflecting the 
contribution from new facilities such as the Combined Operations 
Centre for British Airways at Heathrow. 

Capital expenditure rose by 72.6% to £88m. The Company 
continues to exercise tight control over the costs of its major pro- 
jects, Net debt has increased by £33 m and now stands at £772m. 

Chief Executive Sir John Egan commented, “The three 
month trading performance shows the Company’s airports 
benefiting from strong traffic growth as the worldwide economy 
recovers. Gatwick in particular has shown its strongest growth for 
three years. Our strategy of developing the core business, building 
revenue and controlling costs has enabled us to capitalise on this 
growth and this confirms our confidence in the prospects for the 
next nine months and beyond." 


PROFIT AND LOSS ACCOUNT 

FOR THE 3 MONTHS ENDED 30 JUNE 1994 

31 March 

1994 

£m 


30 June 
1994 

£m 

30 Jure 
1993 

(unaudited) 

£m 

1.098 

Revenue 

305 

291 

(73 0) 

Operaring coats 

084) 

(178) 

368 

Operating profit from continuing operations 

121 

113 

(46) 

Interest 

(io> 

(13) 

322 

Profit before cannon 

111 

100 

(82) 

Taxation 

(29) 

(26) 

240 

Profit for die period 

82 

74 

47 .Op 

Earnings per share (pence) 
before capitalisation issue 

lfiOp 

143p 

23.5p 

Earnings per share (pence) 
after capitalisation issue (see note 5) 

aop 

7-2p 

STATEMENT OF TOTAL RECOGNISED GAINS. AND LOSSES 



240 

Profit for the period 

82 

74 

340 

Unrealised revaluation surplus 

- 

- 

580 

Total gains and losses relating to tbe period 

82 

74 


.VOTES ON THE PROFIT AND LOSS ACCOUNT 

1. This CTJrrmmr has been prepared in according with the accounting policies used in the 
statutory financial so cement* <br (be year ended 31 March 1994. 

2. Tbe fignres fix the yew ended 31 March 1494 are extracts from die published accou nt s. 

A copy oi die full accounts for that year, on which die Auditors have i s su ed ao unqualified report, 
has bool delivered to the Regxnnr of Companies. 

3. The interest charge is shown net of interest capitalised of£9Tm (30 June 1993: £6 l2ri; 

31 March 1994: £30 An). 

4. The morion ch arge for tbe three months ended 30 June I4W has been based on die 
tsn mated eff ect iv e rate for the full year. 

3. The capitalisation issue was approved by shareholders at die Company's Annual General 
Meeting on !4Jnly 1994. 


Our ngdsms arr Baniap Repwos, Bourne House. 34 Beckenham Rocti, Beckenham, 
Kent BR3 4TV. Telephone: 081 650 4866. 


CONSOLIDATED BALANCE SHEET 

.45 AT 30 JUNE 1994 

31 March 

1994 

£m 


30 June 
1994 

£m 

30 June 
1993 

(unaudited) 

Cm 

3,604 

Fried assets 

3,678 

3,073 

<2?9) 

Net current liabilities 

1238) 

(113) 

3.365 

local assets less cunent liabilities 

3,440 

2.960 

(822) 

Creditors: amounts due alter one year 

(815) 

(839) 

i543 

Share capital and reserves 

2,625 

2.121 

£4.98 

Net asset value per share 
before capitalisation issue 

£5.14 

£4.18 

£2.49 

Net asset value per share 

after capitalisation issue (see note 4) 

£2.57 

£2.09 


NOTES ON THE &4L-LVCE SHEET 

1. The Group's investment p ropert i es are included at 31 March 1994 valuations as adjusted fix 
expenditure since that date. 

2. Airport fired assets include QCJm r e prese nting expenditure co date on Terminal 5 (Hi June 1993: 
£573m. 31 March 1994: £7&2m). 

3. Labilities include borrowings of £8 1 SOm (30 June 1993: £82 1.4m; 31 March 1994: 

£8l4&n restated in accordance with FRS 4, Capua! Instru m e nt s). 

4. The capitalisation kmc was approved by shareholders at the Company’s Annual Centra] 
Meeting on 14 July 1994. 



CONSOLIDATED CASH FLOW STATEMENT 

FOR THE 3 MONTHS ENDED 30JUNE 1994 


31 March 
1994 

£m 


JQJune 30 June 

1993 

(unaudited) 

£m £m 

474 

Operating activities 

Returns on investments and 

85 

109 

(161) 

servicing of finance 

(2) 

(4) 

(70) 

Tax paid 

(10J 

(10) 

(236) 

Investing activities 

(106) 

(51) 

7 

Net cash (outfkrwVtnfkrw before financing 

(33) 

44 

22 

Financing 

(Decrease J/increase in cash and 

3 

23 

(15) 

cash equivalents 

(36) 

21 

7 


(33) 

44 


BAA ri 

HELPING BRITAIN TAKE OFF 

Heathrow « Gatwick * Stansted « Glasgow * Edinburgh •* Aberdeen * Southampton 




8 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


FINANCIAL TIMES 

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

Saturday July 30 1994 

Credible 

forecasts 


“In July the sun is hot. Is it 
s h ining? No it’s not." Flanders 
and Swann's old advice for those 
planning their holidays in Britain 
is an equally good guide for those 
fretting about the pace of the 
country’s economic recovery. 
True, the horizon remains unusu- 
ally cloudless for an upturn which 
Is two years old. But the test of 
whether the government will 
allow it to overheat lies ahead. 

While the economy's worrier-in- 
chief, the Bank of Eio gtenti, was 
celebrating its 300th birthday, oth- 
ers in the city this week did some 
worrying of their own. This led to 
a significant fall in the price of UK 
government bonds. The yield on a 
10-year gilt-edged security had 
risen to over &6 per cent by the 
end of the week, while Friday's 
money markets brimmed with 
expectations of Interest rate rises 
to come. Is this midsummer mad- 
ness, or something a bit more fun- 
damental? 

Wednesday's silly rumours, 
whether substantiated or not, that 
a Conservative MEP bad. called for 
a hike in interest rates, would 
probably have received less atten- 
tion in cooler months. DK bonds 
were also partly suffering a 
knock-on reaction from fears of 
inflation in the US. But the Con- 
federation of British Industry's 
Industrial Trends Survey for July, 
published on Wednesday, helped 
fuel more home-grown fears that 
interest rates would need to rise 
soon. 

Receiving most of the attention 
were the Survey's findings on 
manufacturing capacity. The num- 
ber of companies reporting that 
they were operating below full 
capacity fell to 54 per cent, com- 
pared to 59 per cent four months 
ago. The latter happens to be the 
long-term average Tate. Slightly 
more firms also fear that capacity 
will restrain their output in the 
c oming months: anothw warning. 

Market speculation 

Although there are some causes 
for concern, little in the Survey 
points to an imminent takeoff in 
prices, as the authors themselves 
point out Similarly, the Trea- 
sury’s monthly monetary report - 
released as the governor of the 
Bank of Fn gfanfl bad his monthly 
meeting with the chancellor of 
exchequer - provided the partici- 
pants with few reasons for con- 
firming the financial markets 1 
speculations. The narrow measure 
of money growth, though still 
growing faster than its monitoring 
range, slowed slightly in June, to 
&8 per cent, addle output price 
inflation, as reported earlier in the 
month, remains at its lowest level 
since 1967. 

Monetary authorities with less 
profligate histories might get 
away with leaving things as they 


are. But British financial 
currently need rather more per- 
suading that Mr Clarke will hold 
fast to his medium-term inflating! 
targets. The gap between conven- 
tional and index-linked govern- 
ment bonds, a rough guide to 
inflation expectations, indicates 
that tiie market expects inflation 
to average over 4.6 per cent during 
the next five years, considerably 
more ifton the government Ha« 
promised. 

Attaining greater long-term 
credibility win take more than the 
publication of the two gentlemen’s 
monthly conversations. It will 
mean showing a willingness to act 
to slow price pressures, even when 
they remain beneath the surface. 
The significant growth in com- 
modity prices, as many have 
remarked, is a potential source of 
such pressures. But these play a 
much smaller role to determining 
production costs than pay. 

Average earnings 

At present, growth to average 
Ramingg remains moderate, at a 
yearly rate of 3% per cent, having 
been broadly flat over the past few 
months. This should not breed 
complacency, however. For one 
things, average earnings are not a 
complete measure of labour costs, 
since they exclude the cost of 
many cash and non-cash benefits. 
As the pay research body. Indus- 
trial Relations Services, points out 
in its latest monthly bulletin, sev- 
eral of these excluded costs have 
been rising to recent months. 

While overall employment 
growth has been slow to appear to 
this recovety, the CBI’s finding 
that a growing number of firms is 
experiencing skilled labour short- 
ages is also worth worrying about, 
even if the proportion of affected 
firms remains below 10 per cent If 
skilled labour is becoming scarce, 
it may not be readily available, 
since unskilled male unemploy- 
ment at the beginning of the 1990s 
was some 5% times the figure for 
skilled workers. 

Wage developments in the 
months and years ahead will be 
the central test of whether the UK 
economy is able to deliver a 
hi gher level of employment, while 
keeping prices stable. But average 
earnings figures tend to lag 
behind developments elsewhere. 
Mr Clarke does not have the lux- 
ury of waiting for the figures to 
look significantly more alarming. 
If he is serious about inflation. 
Conservative MPs hoping to 
escape the year without an inter- 
est-rate rise are likely to be disap- 
pointed. They may not even reach 
their party con fe ren c e unscathed. 
Sterling futures are discounting a 
significant rise to base rates by 
the autumn. "Bleak September, 
mist and mud. is enough to chill 
the blood.” 


T he “superhighways" of 
the future have nothing 
to do with eight-lane 
motorways. They are 
sophisticated telecom- 
munications networks connecting 
living rooms and offices that wifi 
buzz with inter-active computer ter- 
minals. 

If some modern prophets are to be 
believed, home shopping, games, 
movies, lessons, remote diagnosis 
ami treatment of illnesses, informa- 
tion on virtually anything could be 
available at the flick of a button, 
via fibre-optic telecoms lines - pro- 
viding a “communicopia" of new 
services, transforming work and lei* 
sure patterns. 

Some believe the living room will 
ultimately double as the office for 
many, perhaps most, people, as 
“teleworking" spreads arid commut- 
ing becomes a minority activity. 

For British TMp cnrnvT^inirgHnrta 
entering its second decade after pri- 
vatisation, assessing and success- 
fully exploiting the growth of super- 
highway services is a critical 
challenge. The task is still greater 
because, at the same time, BT is 
fighting to protect its position in 
the grtstmg UK telephony market 
and attempting to tom itself into a 
global company. 

Phone boxes now work, call 
charges are falling, and service 
quality is far hi gher than at the 
time of privatisation. But the UK’s 
largest company yearns to be the 
main UK provider of inter-active 
services in the next mille nnium 
“We will become retailers of any- 
thing you can convert into* digital 
form," says Sir Iain Vallance, BT 

chairman. 

Earning £60m of profit each week, 
BT has the resources necessary to 
build a superhighway, and it is a 
match for any other telecoms com- 
pany to its access to technological 
know-how. 

Yet for managamant and employ- 
ees alike, BT’s vision goes hand-to- 
hand with deep frustrations. 
Besides mass redundancies, the 
company faces tougher competition 
at home, a UK regulatory regime 
that it claims makes superhighway 
investments imwwinmir, ?nri deep 
uncertainties about the strength of 
demand for new inter-active ser- 
vices. 

This week BT received a fillip 
when the House of Commons trade 
and industry committee declared a 
“information superhighway" a 
national priority and railed for a 
gradual lifting of the ban on BT 
providing broadcast entertainment 
services to homes. 

The government has yet to 
endorse that reco mmendati on. But 
BT Is p lanning on the assumption 
that it will be able to offer a foil 
range of inter-active services by the 
late 1990s. It is currently undertak- 
ing technical trials at Ipswich, to be 
followed next year by commercial 
trials of home shopping, video-on- 
demand and other inter-active ser- 
vices with 2.500 customers to Col- 
chester. Dr Alan Rudge, BTs direc- 
tor of development, says the first 
services could “follow on from those 
trials”. 

Yet even If regulatory hurdles are 
lifted, the d emand for such services 
is questionable. Teleworking has 
obvious attractions, but it is debat- 
able whether most businesses or 
individuals will think ft desirable, 
let alone feasible. 

In the shorter term, it has yet to 
be shown that services targeted at 
residential consumers across inter- 
active networks - such as home 
shopping, teaching packages, video- 
on-demand and games - can be 
competitive. Existing providers, 
such as video stores, and high-tech 
alternatives to the network ser- 


A long and 
winding road 

Should BT go down the superhighway? 

Andrew Adonis looks at the 
telecommunications company’s strategy 


vices, such as CD-Rom discs 
(advanced multi-media versions of 
compact discs which run on per- 
sonal computers), may be cheaper 
for consumers than superhighways. 

BT is it hard jq 

persuade people to use normal 
home telephones, which are cur- 
rently engaged for an average of 
barely four minutes a day. Persuad- 
ing customers to use a telecoms ter- 
minal for expensive multi-media 
wizardry is a speculative venture. 

Furthermore, if telecoms opera- 
tors can carve out a distinct niche 
for inter-active home services, then 
the main gainers may not be BT but 
the cable operators which have bad 
a head start in building inter-active 
local networks and already claim 
750,000 TV subscribers. Should the 
cable operators, mostly backed by 
large US groups, comer the market 
for domestic inter-active services 
before BT has constructed its 
“superhighway", there may be no 
room for a BT fibre-optic local net- 
work offering the same services. 

All of which makes the battle 
between BT and its 130 telecoms 
competitors in the UK - most of 
them licensed in the past three 
years - more than a straight fight 
over the existing telephony market 
BT still has an 85 per cent market 
share but says Sir bin, “this is a 
war of attrition, and our strategy 
has to be to fight every inch of the 
way”. 

To combat domestic competition. 
Sir Iain's strategy is to turn BT into 
a marketing-led company with a 
reputation for quality. Mr Michael 
Hepber. BTs managing director, 
tells the company's managers he 
wants BT to be the Marks and Spen- 
cer of the UK telecoms industry- It 
is more than a quip. A confidential 
report to the BT hoard last spring, 
based on a survey of opinion for- 
mers, ranked BTs corporate image 
7th out oF 7 selected blue-chip UK 
companies. The top-rated company, 
with favourable ratings from 91 per 
cent of respondents (against 43 per 
cent for BT) was Marks and Spen- 
cer. Tellingly, the most recent non- 
executive director to be appointed 
to the BT board is Mr Keith Oates, 


*We wiH become 
retailers of anything 
you can convert into 
digital form,’ says 
Sir Iain Vallance, 
BT chairman 


deputy chairman of M&S. 

Mr Hepher’s mission, strongly 
backed by Sir Iain, is to carry 
through a cultural revolution, elimi- 
nating all trace of BTs old utility 
and monopoly ethos. To lead the 
revolution Mr Hepher, an outsider 
recruited by Sir Iain three years ago 
from Abbey Life, the insurance 




1963/84 

1993194 

Turnover 

£6.9bn 

£1 3.71m 

Pre-tax profit 

• £990m • 

£2.7&n 

fibre in network 

Less than 500.000 km 

ZUmHnonkm 

Employees 

241,000 

. 156400 

Payphones 

76.500 

122JXK) 

Residents fines 

16.06m 

20.47m 

Business Ones 

3.77m 

6.17 m 

Proportion of revenue 
generated in UK 

100% • 

96% 

Chairman's salary 

Sommer 

£84.198 

E863JXX} 


group, has been steadily filling the 
top executive posts with fellow out- 
siders. 

“We are con tinually winnowing 
out the old-style managers," says 
Sir lain, emphasising that customer- 
responsiveness and an appreciation 
of the need for change are the quali- 
ties he most values in his managers. 
BTs management board, which Mr 
Hepher chairs, has been renamed 
the “group quality council.” Of its 
nine members, only two are career 
BT executives: the other seven are 
recent recruits from companies as 
diverse as IBM, Black & Decker, 
and US West, the US regional phone 
company. Another former IBM exec- 
utive, Mr Howard Ford, has just 
been appointed to head Cellnet, 
BTs cellular network joint venture 
with Securicor. 

In the business sector, where Mer- 
cury, BTs main rival in the UK, is 
well-established, Mr Hepher has 
been mtwterminrH ng a “win back" 
campaign, emphasising the quality 
of BT service, to the domestic sec- 
tor, a recent marketing blitz has 
concentrated on getting people to 
realise how cheap ft is to use the 


phone. BT staff to all sectors are 
being familiarised in basic market- 
ing techniques. 

The strategy appears to be bear- 
ing fruit to the past year BT has 
increased its inland traffic by 7 per 
cent and its international traffic by 
5 per cent - more than compensa- 
ting for the loss of business to Mer- 
cury, cable operators, and other 


BT has set out to 
build a significant 
international 
business. Abroad, as 
at home, its ambition 
is to dominate 


competitors. According to Robert 
Fleming, the brokers, BT is adding 
phone connections at the rate of 
100,000 a month, including cellular 
and land-based lines, which is four 
times its rate of loss to cable opera- 
tors. Daiwa Research estimates that 
BT will still have 90 per cent of 
local phone connections in 2000, and 


th3t Its share of revenue will haw < 
fallen only to about 80 per cent of 
the total. 

As well as •securing Its future UK 
base. BT has set out to build a sig- 
nificant international business. 

Abroad, as at home, Its ambition is 
to dominate. “We would aspect to 
be number one to the globalisation 
of telecommunications." says Sir 
loin. “A lot of it has to do with 
surprising the enemy, that dislocat- 
ing the enemy, then advancing into 
his territory." 

In June last year BT forged a 
$S.3bn alliance with MCI. the sec- 
ond largest US operator. BTs strat- 
egy is to make Concert, its joint 
venture with MCI, the main pro- 
vider of international telecoms ser* 
vices to multinationals, as corpo- 
rate life becomes a true “global 
village" which can be serviced by 
stogie telecoms operators. The deal 
is an integral part of BTs super- 
highways vision, piggy-backing 
advanced business services onto 
networks operated mainly by other 
companies. 

It faces tough competition abroad 
from AT&T, the largest US opera- 
tor, and from the French and Ger- 
man state operators, which earlier 
this summer forged a $4bn alliance 
with Sprint, the third-largest US 
long-distance operator. But most 
observers put BT at least six 
months of its International 

rivals In terms of concrete services. 

Sir Iain says BT has a a "nuclear 
deterrent" - the possibility of using 
Its alliance with MCI to break the 
existing c artel of paHnpai Mwmn 
operators which keeps international 
phone calls artificially expensive. 

To do so would be a huge gamble 
for BT, which gains from the exist- 
ing arrangements. But the divi- 
dends for the first operator to bust 
the cartel could be equally large. 

BTs global ambitions, however, 
may be held back by trouble on the 
home front It feces deep discontent 
among its workforce amid large 
scale redundancies and continual 
management change. In the past 
four years BT has shed a third of its 
workforce - 90,000 employees, more 
than the total manpower of the 
Royal Air Force and Royal Marines 
combined. An employees' meeting 
earlier this week brought the dis- 
content into the open - particularly 
among managers, who are bearing 
the brant of this year’s redundan- 
cies. One graduate trainee said that . 
she bad joined the company with 28 Oil II 
others, but the best ten had now 
left ; 1. 

“There is a time of a maximum 
uncertainty, when people know the ? 
numbers but not what it is going to 
mean for them.” says Sir Iain. But it 
is not past Further massive redun- 
dancies are in the offing, and Sir 
Iain will give no guarantee that 
compulsory redundancies will be 
avoided. 

Yet nobody believes that the 
dock can be turned bade. Privatisa- 
tion. competition and the conver- 
gence of media are feds of life, and 
BTs managers realise they have no 
choice but to ensure the company is 
able to take advantage of those 
changes - and exploit the arrival of .. 
the new superhighways, to a recent 
book* examining BTs post-1984 . 
experience, Mr Kenneth Baker, the : 
minister responsible for privatisa- 
tion, recalls: “when I want to other ; ... 
European countries explaining lib- . 
eralisation and privatisation, 1 was 
treated as a sort of lunatic ... who , 
was breaking up a natural monop- 
oly”. Ten years on, the lunatics are . 
triumphing the world over. 

* Joyce Wood, UK Telecoms: Spring- 
board for the Future, FT Publico- . 

Hons, 1 Southwark Bridge, London 
SEI 9HL, £48. 



MAN IN THE NEWS: Henry Gonzalez 


C ongressman Jim Leach, 
the Iowa Republican, Is a 
former Rhodes scholar not 
above occasionally flash- 
ing his erudition. His disquisition 
opening the second day of the 
House banking committee's White- 
water hearings contained references 
to ancient Egypt, Copernican 
astronomy and the American revo- 
lution. Here, verbatim, is what he 
got in response. 

“I will reserve for the record my 
observations on the history of the 
Ptolemaic world and point out to 
the gentleman that, in geometry, 
foremost mathematicians like 
Thales, who was most famous for 
saying that what one fool could do 
another could too, always to bring- 
ing forth the geometric basic truths, 
would always say QED - quad erat 
demonstrandum - that is. it 
remains to be proved and now it 
has been proved. And what the gen- 
tleman has said is. given bis inter- 
pretation and prognostication of 
witnesses yet to be heard or those 
that have been heard, and I was 
hoping that that would have been a 
summing up at the end of the wit- 
nesses." 

That was pore Henry Barbosa 
Gonzalez: the hint of scholarship, 
the mangling of the language, the 
iron fist to the courteous velvet 
glove. All these, and quite a bit 
more, including a legendary temper, 
were on display this week. The ven- 
erable chairman of the banking 
committee took it upon himself to 
ensure that the first congressional 
crack at the tangled skein known 
genetically as Whitewater stuck to 
rules which he had been instrumen- 
tal in crafting and which were 
designed to limit any damage to a 
Democratic president and White 
House. “This is not a trial." he 
declared on day one, and then set 
out to be both judge and jury. 

It was a performance that drove 
Republicans on the committee, 
including Mr Leach, to paroxysms 
of frustration, as the chairman rou- 
tinely ga veiled them out of order 
and cut them off when their allotted 
five minutes of questioning had 
expired. It even elicited an editorial 


More and less than the 


sum of his parts 


in the nominally liberal New York 
Times, headlined “Censorship, 
Gonzalez Style", complaining that 
“the irascible Texan has twisted the 
already stringent rules to make it 
virtually impossible for members to 
develop a continuous, productive 
line of inquiry into even the narrow 
matter at hand" Even some Clinton 
supporters wondered, privately, if 
he was not going too far. 

Fitting Henry Gonzalez, 78 and in 
bis 34th year in Congress, into a 
neat box is not possible. He may be 
variously and accurately described 
as a pure populist (he would abolish 
the Federal Reserve system, symbol 
of tog money), a blind Democratic 
partisan (he wanted to Impeach 
Presidents Reagan and Bush over 
the invasion of Grenada, Iran-Con- 
tra and the Gulf war), and a fearless 
investigator (into failed savings and 
loans companies. BCCI and Iraq). 

He is also well-read (fond of mix- 
ing Shakespeare and Mexican 
poetry), incorruptible (he shuns the 
Washington social circuit and goes 
borne most weekends), a loose can- 
non (capable of abrupt changes of 
mind) and an autocrat who more 
than once has decked a political 
critic with his fists. He is In fact all 
of tiie above, but contradictions ren- 
der him both more and less than 
the sum of his parts. 

He was bora in San Antonio to 
1916, five years after his family bad 
fled Mexico to escape Pancbo Villa’s 
revolution. His Basque ancestors 
had come to Mexico to the 16th cen- 
tury and were big silver mine opera- 
tors, with political clout, but he was 
raised in straitened circ umstance s 
not improved to the Depression. 

Still, be acquired engineering and 
law degrees and entered social 
work. In 1956, he became the first 
Mexican- American in more than ioo 
years to be elected to the Texas 



senate, malting a natnp fi ghting dis- 
crimination and poverty. After two 
felled tods for the go v e rn o rship and 
Lyndon Johnson’s old House seat 
he won a special election to Con- 
gress from San Antonio to 1961 and 
has not faced a serious challenge 
since. 

Perhaps taking a cue from 
another legendary Texas populist, 
Wright Patman, he made the bank- 
ing committee, with its broad remit, 
the vehicle for his congressional 
career, being elected rhairman in 
1989. In this role, Mr Gonzalez’s 
non-partisan side was apparent 
whenever financial malfip»<iann» 
was involved: four of the five US 
senators censured for taking pay- 
ments from Charles Keating, chair- 
man of the defunct Lincoln savings 
and loan company, were Democrats, 
while Clark Clifford, the Democratic 
lawyer, was not spared over BCCL 


Curiously, whenever the commit- 
tee is about its usual business, Mr 
Gonzalez runs it loosely, often los- 
ing procedural votes in spite of its 
80-20 Democratic majority and 
sometimes appearing uninterested 
in the substance of legislation. One 
of the biggest admirers of his style 
as chairman used to be Jim Leadh, 
the r anking mino rity member. 

On Whitewater, Mr Gonzalez ini- 
tially resisted congressional hear- 
ings, saying they would jeopardise 
inquiries by Robert Fiske, the spe- 
cial counsel. Earlier this year he 
told Mr Leach it would be “a cold 
day to Manila” before be allowed 
his committee to get involved. 

Just to rub it to, and breaching 
congressional decorum, he accused 
the mild Iowan of being obdurate, 
premeditated and wilfully disobedi- 
ent Days later he acceded to hear- 
ings, saying “the country deserves a 


chance to expose the Republican 
witch hunt for what it is". 

The problem for Mr Gonzalez Is 
that he can only keep a lid on those 
Whitewater matters before his 
paneL Leaks from other committee 
staffs are rampant, though they 
have not amounted to much. Yes- 
terday the Senate banking commit- 
tee got into the act under looser 
rules and under the direction of 
Senator Dan Riegle (coinciden t ally 
a Democratic member of the Keat- 
ing Five and Senator A1 D’Amato 
(the New York Republican irrever- 
ently known as Senator Quid Pro 
Quo). 

Simultaneously, whatever the 
convincing protestations of inno- 
cence before the banking committee 
this week by Lloyd Cutler and Bern- 
ard Nussbaum, present and past 
White House counsel, trouble seems 
afoot at the Treasury. Roger Alt- 
man, the deputy, and Ms Jean Han- 
sen, the chief lawyer, both face 
tough questioning next week and 
either could end up as a sacrificial 
lamb 

Yet it would require a wild 
stretch of the imagination to com- 
pare the week’s hearings, to terms 
of drama or content to the great 
congressional fora of the past - 
dealing with Watergate, Iran-Contra 
and the Clarence Thomas nomina- 
tion to the Supreme Court Cable 
TV channels covered the hearings 
but the commercial networks did 
not, though yesterday they 
suspended all regular daytime pro- 
grammes for a court appearance by 
O J Simpson. 

Henry Gonzalez was not the only 
star of the week. His lighthearted 
foil. Congressman Barney Frank of 
Massachusetts, pricked Republican 
bubbles of outrage and definitely 
produced the best one-liner after 
exchanges featuring much legal jar- 
gon: “I am waiting to be shown a 

redacti ve recusal" 

But the words most often heard 
came from the chair . “The time of 
the gentleman has expired." It was, 
of course, not applied to himself. 

Jurek Martin 


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f.iii i s*-.** » 


d 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


ie 


str.t u-iu 






j 


Last 


A fter the pomp and publicity 
of the White House garden 
ceremony on Monday, when 
King Hussein of Jordan and 
Mr Yitzhak Rabin, Israel's prime min- 
ister, signed an end to a 46-year-old 
state of war on a sunlit table, the 
focus of the peace process returns to 
the Middle East. This tim* ft disap- 
pears behind the firmly closed doom 
of the presidential palace high on the 
hiiin overlooking Damascus. 

Mr Warren Christopher, US secre- 
tary of state, is expected in Syria 
again as early as next week, just over 
a fortnight after his last round of 
talks with President Hafez al-Assad, 
the Syrian leader. The visit is a clear 
attempt to use the fresh, momentum 
of this week’s signing to push along 
the Syrian track of the three-year-old 
Middle East peace process, which ha* 
proved the slowest 
Mr Christopher will be hoping Mr 
Assad has read the si gnals from the 
White House. The Syrian leader, who 
is seeking much closer ties with the 
US and the removal of his country 
from America's list of state sponsors 
of terrorism, will have seen the 
warmth of the reception accorded 
King Hussein, who appeared to have 
erased the damage done to US-Jorda- 
nian relations during the Gulf war. 

He will have seen that peace brings 
material rewards - in Jordan’s case, 
US promises of military aid and debt 
relief worth 5700m. Mr Christopher 
might additionally hope that Syria 
will feel left behind in the peace pro- 
cess, and that Mr Assad might 
quicken his step in the negotiations. 
For as Mr Shimon Peres, Israel’s for- 
eign minister, said yesterday that tbs 
sides still remained Ear apart: “Right 
now it’s not a tango, ifs not a dance 
between the two [parties].” 

Mr Assad will have digested these 
developments, though close diplo- 
matic and academic observers doubt 
whether he is susceptible to pressure 
on the basis that he is being “left 
behind”. One senior western diplomat 
suggests that a man famous for sit- 
ting ramrod-straight for hours during 
diplomatic meetings to convey the 
impression of implacable strength and 
resolution would not give any sign of 
being hurried, even if he felt it 


tango in the Middle 

Mark Nicholson unravels Syria's role in the peace process 


East 


a.'tn' ..... 



K m ■ ■ 

? Bekaa-,. 

• Vattay v. 

-EBANON r*' • 

if Damascus 


STOjrtty f Goian 


-• 


3? ISRAEL 



JORDAN 


Kinrj Hussain ol -Jordon 


In any case, he adds: "Assad’s 
patience is legendary, and if Syria has 
already waited 27 years to get back 
the Golan Heights, than why not wait 
a few more if that's what it takes to 
get the right deal?” The area between 
Israel and Syria, which Israel has 
occupied since the 1967 Arab-Israell 
war, forms the heart of the antago- 
nism between the two countries. 

Further, while King Hussein accel- 
erated his talks with the Israelis 
partly to prevent the risk that his 
kingdom might be marginalised in the 
peace process, Mr Assad harbours no 
such worries. He knows that both 
Israel and the US consider Syria the 
crucial component in any overarching 
regional peace deaL The other head- 
line Middle Eastern events of the past 
week amply suggest the reasons why 
- and why the Israeli-Syrian track of 
the talks is proving the most complex 
and slowest to show progress. 

The two bombings against Jewish 
targets in London this week, which 
left 19 wounded, and the car bomb 
which killed 96 in an anti-Jewlsh raid 
In Buenos Aires on July 18, were bru- 
tal reminders that deadly and effi- 
cient opponents both of Israel and of 
the peace negotiations remain at 
large. Whether the Lebanese militant 


'Jerusalem.* 


0 mm 23 
0 Km 40 



Mamie group Hlzbollah was behind 
some or ah of the attacks, or whether 
the plots were ultimately hatched in 
the Iranian capital, Tehran, as Israel 
charges, is still to be discovered. 

There is reason to suspect the Irani- 
an-backed Hlzbollah, despite the 
organisation’s denials of involvement 
In any of the attacks. It has ninimwi 
responsibility for a bombing of Jewish 
targets in Argentina before. In 1992. 


M oreover, it swore only 
last month that it would 
use its own "long arms” 
to exact revenge for an 
Israeli attack on a Hlzbollah training 
camp deep in the Bekaa Valley in east 
Lebanon, in which 30 of its fighters 
were killed. 

As long as Iran remains hostile to 
any peace with Israel and capable at 
least of Inspiring acts of anti-Jewlsh 
terror, there is little Israel or the US 
can do to banish the threat of such 
outrages altogether. But the possibil- 
ity of neutralising, or at least contain- 
ing, such threats under the present 
peace process lies largely in Mr 
Assad's hands. 

For one thing, Mr Assad has shown 
that he can effectively contain Hezbol- 
lah's threat to Israel from south Leba- 


non. While the group is supported by 
Iran, its mate rerm p g in Lebanon oper- 
ate largely in Syrian-held areas of the 
Bekaa Valley and its arms must pass 
through Damascus. Last year, when 
Israel pounded south Lebanon for a 
week in retaliation for Hlzbollah 
rocket attacks into northern Israel, 
Mr Assad's intervention secured a 
"gentleman's agreement” that such 
attacks would cease. That agreement 
ha s essentially held. 

While Israeli troops remain inside 
their self-declared 15km-deep "secu- 
rity zone” in south Lebanon, neither 
Syria nor the Lebanese government 
will act to deprive Hlzbollah of arms, 
which the group says it is using 
against an occupying force. But few 
in Damascus or Beirut doubt that if 
and when an Israeli withdrawal is 
agreed under an eventual regional 
peace plan, Lebanese troops, backed 
by the 35.000 Syrian troops in the 
country, will disarm and close down 
Hlzbollah as a violent threat to 
Israel 

Moreover, it is widely thought that 
Mr Assad would be able to exert his 
authority over Hlzbollah without 
damaging his friendly relations with 
Iran. Hie Iranians have few friends 
among Arab states and are antitheti- 


cal towards making peace with Israel. 
"The Iranians have already said that, 
if Syria made peace, Iran would con- 
tinue to treat it differently from the 
other Arab states such as Egypt,” 
says Mr Shahram Chubin. an Iran 
analyst at the Institute of Interna- 
tional Studies in Geneva. 

Several European diplomats in 
Damascus believe Syria has already 
reached an yrnrig rg tawd i n g with Iran 
that Tehran would cease to provide 
military support for Hlzbollah in the 
event of a Syrian- Israeli peace. 

Syria’s potential role as an interme- 
diary and interlocutor with Iran is 
almost certainly something Mr Assad 
hopes the US will acknowledge and, 
perhaps, reward. 

Ms influence over Hizbollah is a 
bargaining card that Mr Assad is 
playing cannily as he negotiates with 
the Israelis for their withdrawal from 
the Golan Heights. In return, Israel is 
seeking a Syrian commitment to a 
"full” peace of open borders, trade 
and normalised diplomatic relations. 

Finding a formula to resolve the 
Impasse over a "full” Israeli with- 
drawal from the Golan Heights In 
exchange for a "full" Syrian peace 
with Israel is in itself a considerable 
diplomatic challenge. The return of 
the Golan is paramount for Mr Assad. 
But a solution to thin problem alone is 
unlikely to satisfy him if it does not' 
also bring a wider acknowledgement 
of Syria's importance as a regional 
power. His price for containing Hiz- 
bollah in any peace is likely to be 
some US-Israell recognition of contin- 
ued Syrian influence in Lebanon. 

The detailed progress of negotia- 
tions between Syria and Israel is diffi- 
cult to interpret while both sides 
remain silent But Mr Christopher’s 
return to Damascus Indicates that the 
US believes Mr Assad is prepared to 
move the talks forward. For Mr Assad 
to receive him suggests Mr Christo- 
pher is not arriving empty-handed. 

US promises of improved relations 
ami material aid. Humph , are unlikely 
to bring Mr Assad to the White House 
lawns with Mr Rabin. According to 
one western ambassador "Assad j 
would never be willing to give up I 
certain political principles just to get 
some money.” I 


John Lloyd examines the power of television to 
help create a consumer society in Russia 

The Possessed 


I n an advertisement for 
the collapsed MMM 
finance house - still run- 
ning on Russian television 
as thousands of jittery inves- 
tors crowd about its outer- 
Moscow offices seeking to cash 
their shares at virtually any 
price - Lenya Golubkov, the 
commercial's central charac- 
ter, is in California with his 
toother Ivan. They are at the 
football match between Russia 
and Argentina which destroyed 
the former's dreams of taking 
the World Cup. 

The commentary is jokey, 
the camera shots are quick and 
quirky. The main point is that 
Ivan is in despair - not over 
the Russian team's perfor- 
mance, but because Lenya, 
who has fended the trip, has 
done so because he has put bus 
money into MMM shares - 
while Tvan, a working stiff all 
his life, still has nothing. 

As General Electric hired a 
clean-cut. right-thinking, sec- 
ond-rank actor named Reagan 
with which to identify its prod- 
ucts in the 1950s and 1960s; as 
Oxo built up the middle-class 
English personality of Katie to 
drive home the essential good- 
ness of its product, so Bakhyt 
Kilibayev, the Kazakh director 
of the Lenya series created a 
one-representing-all work- 
ing-class character, whose job 
as an excavator driver is aban- 
doned for a life of wealth and 
leisure through his embrace to 
MMM. 

MMM, launched by Mr Sergei 
Mavrodi, bad huge success this 
year by selling shares in itself. 
It quoted its own rocketing 
share prices - from 1,600 rou- 
bles (about US$1) In February 


to more than 100,000 roubles 
this week - to an ever-widen- 
ing circle to buyers. Whether 
they numbered the 2m which 
the Kommersant Daily esti- 
mated this week or the titan 
claimed by Mr Mavrodi, the fig- 
ure is stfll larger than the Rus- 
sian army. Since MMM seemed 
to have no means of making 
money other than the constant 
selling of its rapidly-rising 
shares, it was widely assumed 
to be a pyramid company fend- 
ing new business with old 
receipts. After a triple salvo to 
government warnings on its 
solvency it admitted its virtual 
collapse yesterday, telling 
investors it had nearly run out 
to cash and offering them a 
paltry 950 roubles (US40 cents) 
per share. 

However, Mr Mavrodi has 
not given up. He has launched 
a political campaign against 
the government itself, threat- 
ening to stir his shareholders 
to revolt, or at least to sign a 
petition calling for a referen- 
dum on the government’s com- 
petence. Significantly, he used 
Lenya in this piece of lese 
majestfc "So the authorities 
don't like Lenya Golubkov and 
Marina Sergeyevna (a family 
friend)? But do Lenya Golub- 
kov and Marina Sergeyevna 
like these same authorities?" - 
an explicit effort to equate 
Lenya and Marina with Rus- 
sia’s anti-government citi- 
zenry. 

Lenya, as projected by Mr 
Kilibayev, is a figure In transi- 
tion - as most Russians are. A 
simple if shrewd man in an 
extended family, his “life" is 
crazy, impulsive, and when not 
caught up in outings to Calif- 


ornia and to Paris, is lived 
largely on and around the 
couch from which he and his 
grtetirieri famil y watch TV. 

Putting a TV in the commer- 
cials as well as the commer- 
cials an TV showed the instinc- 
tive mastery which has 
distinguished the campaign. In 
the post-Soviet period, the Rus- 
sian channels old and new are 
a riot of raucous game shows, 
western soap operas and films, 
and the remains to the ram- 
bling Soviet talk programmes 
- and lengthy, frequent com- 
mercials, of which MMM's 
have been, the most frequent 
and the most vivid. Vivid most 
to all because - in contrast to 
the many in which sleek young 
men in dinner jackets and 
women in shimmering, close- 
fitted gowns slither round Jap- 
anese jeeps - it is both a slice 
to life In the apartment block, 
and a s end-up to it It endorses 
both the common feeling that 
we are all living through chaos 
where any- 



■ ' Y j* - : 




MMM investors outside the company’s Moscow offices, where they 


aned to end Mr Chernomyr- 
din’s power by the force to his 
aroused shareholders. 

Mr Mavrodi’s audacity is, 
through Lanya, to identify his 
TV character with the 
undoubtedly deep feelings of 
resentment and frustration felt 
by ordinary citizens when con- 
fronted with a country whose 
— „ — prestige and 


thing goes (and t r^ihihlfrw is P 0 ™* *“* *■“ 

therefore any- uOlUDKOV IS cut a t a stroke, 

thing can be proletarian, turned Whose econ- 
gained). and a nhlpr* omy continues 

cynical com- Consume r, op ject t0 decline, 

ment on just of history trying to where crime is 
that view, a eiihiort exploding and 

shrug which fear to It is per- 

says: so it’s stu- vasive, and 

pid, so it’s croaked, so what? where the figures of authority 
When President Boris Yelt- are routinely dismissed as 


sin said Lenya got on his 
nerves, millions of Lenyas 
were, according to the dally 
Izvestiya, insulted. When 
Prime Minister Victor Cherno- 
myrdin warned Lenya (by 
name) that his dream time was 
coming to an end, Mr Mavrodi 
went on the attack and threat- 


venal anri uncaring. 

Lenya also touched a wide 
range of Russian references. 
An anonymous psychiatrist, 
writing in the weekly Sover- 
sheno Sekretno, said that in 

bis CQ Uch-bO Und irn f TPsa ant! 

bis production of fantasies, 
Lenya was a TV recreation of 


facets to Oblomov - the central 
character of the eponymous 
19th-century novel by Gon- 
charov, one who gave his 
name to the phenomenon of 
Oblomovism, or dreamy idle- 
ness. 

But in bis working-class past 
and his escape from it, Lenya 
proposes to everybody the pos- 
sibility of unshackling them- 
selves from the previously 
powerful state-promoted myth 
to Soviet Citizen - proud yet 
obedient, militant but in the 
direction determined by the 
party, having surpassed class, 
want and individualism in pur- 
suit of an ideal (and in part a 
reality) of collective, all-encom- 
passing security and social and 
intellectual identity. 

In Its place is the crazy, self- 
interested, wealth-pursuing 
world of Lenya Golubkov, 
where luck and nerve bring 
rewards to oneself and one’s 
own. The family was always a 
shelter for individuals against 
the relentless collectivism of 
Soviet life- Now it drops its 


Raudr 

were hoping to sell their shares 

defences, and goes on the 
offensive - a consumption 
offensive to the kind big stores 
from Istanbul to Miami have 
noted with delight, as 
their cash registers ring to 
the sound of Russian pur- 
chases. 

Lenya Golubkov will last as 
an influence even though the 
company which gave him birth 
has folded. He is the media 
image of the Russian coping 
with the latest oppression, that 
of the world of consumption 
with its attendant images, 
myths and false h o ods, its new 
liberations and new enslave- 
ments. He is the proletarian 
turned consumer, the object of 
history struggling to be its sub- 
ject. Mr Mavrodi’s threat to 
mobilise millions of Lenya’s 
against the state authorities is 
likely to be the last throw to a 
gambler with the chips stacked 
against him. But he has helped 
unleash something bigger 
even than the dreams he 
encouraged, and has now 
betrayed. 


Programme changed so 
that young people have 
appropriate training 


From Mr TJ Potts. 

Sir, I write in response to 
your article "Training cuts 
’cause destitution’” (July 22). 
In the interests to providing a 
balanced view. I would make 
the following points. Funding 
for the joint venture, known as 
Job, between the Children's 
Society and the Greater Not- 
tingham Training and Enter- 
prise Council was ended 
because a detailed audit by the 
GNTEC revealed that the 
young people were not receiv- 
ing the training and guidance 
needed to achieve their full 
potential 

As a result the trainees were 
transferred on to integrated 
programmes where it was felt 
they would receive improved 
quality training. 

The important point here is 
that they were transferred to 
training companies with both 
the experience and expertise to 
work with people with addi- 
tional needs and achieve posi- 
tive outcomes from their train- 
ing. Each trainee is offered , 
access to qualified profession- I 


als who guide, counsel and 
monitor all aspects of their 
development 

In our view, the combination 
of an integrated environment 
backed by professional coun- 
selling gives young people with 
additional needs the best possi- 
ble preparation to succestoUUy 
enter the world of work. 

A number of trainees from 
the original scheme have sub- 
sequently achieved qualifica- 
tions and jobs. 

One of the many obligations 
that Tecs have is for the health 
and safety of trainees, and this 
aspect was taken into consider- 
ation in arriving at our deci- 
sion. 

The GNTEC was recently 
commended by the National 
Council for Voluntary' Services 
for its work with additional 
needs groups. 

T J Potts. 
chief executive. 

Greater Nottingham Training 
and Enterprise Council. 

Marina Road. 

Castle Marine Park, 

Nottingham NG* ITN 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SJS1 9HL 

Fax 071 873 5938. Letters transmitted should be dearly typed and not hand written- Please set fax for finest resolution 

Investment most pressing economic issue 


Prom S C Vaughan. M Taylor, 
and D A Vaughan. 

Sir, As large suppliers to cap- 
ital equipment in the UK, we 
have noted with interest the 
attention given this week to 
the subject to investment and 
are delighted that, at long last, 
the matter is becoming more 
important (“CBI urges tax 
changes to aid investment”, 
July 28). 

Given the feet that we have 
such beneficial economic con- 
ditions, it should be to great 
concern for the longer term 
tha t the Confederation to Brit- 
ish Industry trends survey 


showed such a small number 
to manufacturers planning to 
invest in plant and machinery 
in the future. The UK has 
always been the poor relation 
to the developed economies as 
far as investment Is concerned. 
UK machine tool manufactur- 
ers are doing extremely well on 
the lack to strong growth over- 
seas, while the UK market 
remains relatively poor. With- 
out vitally needed investment 
in high technology, plant and 
equipment, UK manufacturing 
cannot hope to dose the 25 per 
cent gap in productivity which 
the government identified in 


the recent white paper. While a 
highly skilled workforce is to 
course essential, it becomes 
academic if it has to worts: on 
outdated equipment. We agree 
completely with the need to be 
competitive, to be bench- 
marked against our foreign 
competition and the need to 
increase our productivity, but 
all are fundamentally relative 
to investment 

Manufacturing investment 
should be the most important 
economic issue facing the UK 
today. The chancellor should 
use his forthcoming budget to 
address the UK's investment 


deficiency as low interest rates 
and inflation are obviously not 
sufficient for growth. 

S C Vaughan, 

president and managing direc- 
tor. Hahn & Kolb GB 
M Taylor, 

vice president and managing 
director, Bridgeport Machines 
D A Vaughan, 

vice president and managing 
director, Soag Machinery 
M J Legg, managing director, 
Hitachi Seiki UK, 
c/o Machine Tool Technologies 
Association , 

62 Bayswater Road, 

London W3 3PS 


Michael Skapinker on Forte’s 
renewed effort to take full 
control of the Savoy group 

Knives out at 
heartbreak hotel 


N ew money against 
old. A thrusting 
immigrant family 
takes on England's 
most venerable institutions. 
The drive for profit collides 
with the preservation of gen- 
teel tradition. 

It Is not jnst newspapers 
which have discerned elemen- 
tal conflicts In Forte’s 13-year 
struggle to acquire the Savoy 
group, whose hotels include 


■ k,.,, 


recognise that the running of 
the group can be improved. 
Savoy made pre-tax profits of 
only £725,000 last year on 
turnover of £83m, after record- 
ing a loss of £1.4m in 1992. 

Mr Forte has pat to one side 
his desire to place Forte's most 
exclusive hotels in a joint com- 
pany with the Savoy. Despite 
reports that Forte wants to put 
the Savoy hotels into its inter- 
national booking system, 


Air France support should be decided on a commercial basis 


Prom Dr Mike Walker. 

Sir. In your editorial “Flight 
plan for Air France" (July 25). 
you argue that state aid to Air 
France should be tied to a 
deadline for the full privatisa- 
tion of Air France. Why wait 


until after the provision of 
state aid? As you rightly say. 
the lack of a market for shares 
in Air France makes it difficult 
to judge whether state aid is 
being granted on commercial 
terms. However, if Air France 


were privatised, the market 
could decide whether or not it 
was a sensible commercial 
decision to invest another 
FFrtObn in Air France. If it is a 
sensible commercial decision, 
then the fends could be raised 


on the markets; if it is not, 
then the funds would not be 
forthcoming. 

Mike Walker, 

Lexecon. 

33-34 Alfred Place, 

London WCIE 7DP 


Connaught The protagonists have not te 
appear to enjoy casting them- The City 
selves in these roles too. view that 

They did so during the ini- reason for 
tial eight-year takeover battle, week's an 
which culminated in Forte Forte was , 
acquiring 68 per cent of with mine 
Savoy’s shares but only 42 per trusts. The 
emit to the vote. advice was 

They continued to do so, usu- bad to be n 
ally in private, daring the lation was 
uneasy truce after Forte’s If Forte i 
agreement in 1989 not to raise a more fri 
its stake for five years in industry oil 
return for two seats on the strange wa 
Savoy board. this week’s 

And in the days before this Forte block 
week’s Savoy board meeting, of Sir Rogi 
which announced Forte was of the Wi 
seeking allies among smaller Savoy chi 
shareholding trusts, leaders of refused to 
both camps gave further Roger on t 
insights into how tbey like to executive i 
be seen. changes sh< 

At a hoteliers’ luncheon. Hr ing discuss 
Rocco Forte, 
chairman of 
Forte and son 
of its Italian 
immigrant 
founder, said 
he had no diffi- 
culty passing 
the “cricket f 
test” set by 
Lord Tebbit, 
the former Con- 
servative party 
chairman, sit- 
ting beside 
him. Italy, he 
said, did not 
play cricket 
The Fortes 
are proud of 
their passion- 
ate loyalty to 

ItS, S 1 ™ 15 - «™» Shepard 

play cricket, but it does play ment rema 
football. Lord Forte, Rocco's five-year 
85-year old father, says he November, 
would cheer Italy if they would cans 
played England at Wembley rise, makin 
and Eng land if the game was expensive. 
In Rome. backing, M 

The leaders of the Savoy control wj 
have no need of such fine dis- spend anoti 
Unctions, being firmly rooted There bai 
in British soil. Mr Giles She- Mr Forte 
pard. Savoy’s managing direo- happy to sc 
tor, this week told a tourist but there hi 
gathering of his memories of The Aga K 
picnics on the rocks of Stone- have expres 
henge, before motorways and nothing can 
public toilets damaged this Forte has 
ancient English mystery. luxury hate 

When Lord Forte said in his was the fav 
autobiography that the father Ciga, the l 
of Sir Hugh Wontner, Savoy was defeats 
president until his death in by ITT She: 
1992, was of Hungarian origin, is currentl; 
he received an angry letter Accor of Fi 
from the Savoy's lawyers. Lord then, the Fr 
Forte admitted his mistake. Apart fr 

None of the Insults traded Savoy wool 
daring the takeover battle of there is alsc 
the 1980s have been forgotten would give I 
and few have been forgiven. It Forte propo 
was not jnst Mr Shepard’s the Savoy ai 
assertion that stewardship of honeymoon 
Savoy’s hotels conld not be less, in hi 
entrusted to “a vast combine Lord Forte 
which, among other things, any hotel 
runs service stations on the proud to ow 
main arterial roads”. hotels, “I dc 

What rankles more was Sir Group to ci 
Hugh's remark to Mr Forte have enougl 
after Forte’s initial failure to to be proud 
win control that “I've always While tha 
thought Italians made good 13 years ii 
hotel managers." spend chasi 

Now, however, long-time does not 
observers to the battle believe unlikely to 
Forte wants to reduce the acri- Whether in 
mony. peace, the 

Instead of bickering, the stuck with 
whole Savoy board should some years ; 


have not taken place. 

The City was wrong In its 
view that there was no legal 
reason for Savoy to make this 
week's announcement that 
Forte was seeking an alliance 
with minority shareholding 
trusts. The Savoy board's legal 
advice was that the statement 
bad to be made because specu- 
lation was rife. 

If Forte wants to proceed on 
a more friendly basis, some 
industry observers say it has a 
strange way of showing it. At 
this week's board meeting, Mr 
Forte blocked the appointment 
of Sir Roger Gibbs, chairman 
of the Wellcome Trust, as 
Savoy chairman. He even 
refused to agree to have Sir 
Roger on the board as a non- 
executive director, saying no 
changes should take place dur- 
ing discussion of the group’s 
future. 

Mr Forte's 
attempt to win 
over the trust- 
ees - who have 
enough voting 
shares to give 
him overall 
control - seems 
his best option 
at the moment 
Hie 1989 peace 
agreement 
specified Forte 
would not 
increase its 
stake for five 
years and 

would give 12 
months’ notice 
if it wanted to 
do so. 

. The 12-month 

nd Shepard notice 

ment remains even after the 
five-year period ends this 
November. Giving notice 
would cause the share price to 
rise, making a purchase more 
expensive. With the trustees’ 
backing, Mr Forte would win 
control without having to 
spend another penny. 

There have been times when 
Mr Forte would have been 
happy to sell the Savoy stake, 
but there have been no buyers. 
The Aga Khan is believed to 
have expressed an interest but 
nothing came of it. 

Forte has tried to buy other 
luxury hotel groups instead. It 
was the favourite to take over 
Ciga, the Italian chain, but 
was defeated earlier this year 
by ITT Sheraton of the US. It 
is currently bidding against 
Accor of France to buy Meri- 
dien, the French chain. 

Apart from the prestige 
Savoy would bring to Forte, 
there is also the satisfaction It 
would give to its founder. Lord 
Forte proposed to his wife in 
the Savoy and spent part of his 
honeymoon there. Neverthe- 
less, in his autobiography, 
Lord Forte said that, while 
any hotel group would be 
proud to own such prestigious 
hotels, “I don’t need the Savoy 
Group to crown my career. I 
have enough already of which 
to be proud." 

While that is certainly true, 
13 years is a long time to 
spend chasing something one 
does not need. Forte is 
unlikely to walk away now. 
Whether in acrimony or at 
peace, the two sides appear 
stuck with one another for 
some years yet 


Not on a ballot paper 


From Mr John A Newbould. 

Sir, In common with many 
shareholders who bought 
shares in the privatisation of 
the water industry, I have just 
received from Yorkshire Water 
the annual report, notice of the 
annual general meeting and 
the form of proxy. I was 
extremely concerned that, on 
the form of proxy, the com- 
pany had authorised the -words 
"Not recommended by the 
directors" against the side of 
item 7, “Election of Mrs D 
Scott”. 

In common with Mrs Scott, 
who made a statement advoca- 
ting her election, the directors 
to the company have had an 
ample opportunity to make a 
statement of their reasons for 


apposing the resolution, in the 
notice of the annual general 
meeting. 

In my opinion, to add such a 
statement to a ballot paper is 
an abuse of the traditions of 
the ballot procedures in all 
elections held in the UK. 

If such practices are to 
become common place within 
public company elections, I 
trust that other small share- 
holders will join with me in 
pressing parliament to 
the Company’s Act to outlaw 
such statements on the ballot 
paper. 

John A Newbould, 

Tapton House. 

30 Moorlands, 

Wtckersley, 

Rotherham S66 OAT 


Flyers should also smarten up 

Pwm Ms mta Zarum. although this is far 

Sir, For once I agree whole- to the vests, shorta 
heartedly with Clement Crisp ing shoes now iSHJS?- 11 *®' 
(“The decline and fall of ele- deice. m evi- 


Prom Ms Rita Zarum. 

Sir, For once I agree whole- 
heartedly with Clement Crisp 
(“The decline and fall of ele- 
gance", July IS). I also think 
the scheme proposed by Mr 
David Sawers (Letters. July 22) 
could also be applied to airline 
passengers, but perhaps with- 
out the evening dress - 


Rita Zanon, 


7 'he Addison Tool Cn 
Elliott House. ^ 
Victoria Road, 

Londxm NWlO 6NY 




10 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 I«W4 


COMPANY NEWS: UK 


H&C cuts plantations 
link with $273m sale 


By Peggy HoRmger 


Harrisons & Crosfield 
yesterday dosed the book on 
almost a century of history 
with the announcement that it 
had sold its Tnflnnpsjan planta- 
tions to a group of four Indone- 
sian businessmen for S273m 
(£176m) cash 

The disposal has been expec- 
ted for some time. Harrisons, 
which began life in the 19th 
century as a tea trader, has 
been steadily severing its colo- 
nial links since the late 1980s. 

Harrison’s 19 Indonesian 
estates, producing palm oil. 
robber, cocoa, copra, tea and 
coffee, are by far the most prof- 
itable of the company's 
remaining plantations. They 


were nationalised by the Indo- 
nesian government in 1964, but 
returned to Harrison's owner- 
ship in 1969. 

Last year they contributed 
£18. Lm of the reported £34m in 
plantation operating profits. 

The group retains a 57 per 
cent stake in palm oil planta- 
tions in Papua New Guinea. 

Mr Bill Tur can, the new 
chief executive, said Harrisons 
bad got the best possible price 
against a background of rising 
palm oil prices. 

The proceeds will be used to 
reduce short-term debt, he 
said, with the balance put on 
deposit. If the sale had been 
completed in the last finantrifll 
year, debt would have been 
reduced to £9lm to give gear- 


ing of 14 per cent compared 
with the reported 43 per cent. 

Earnings would have been 
diluted by about 0-5p. 

The company will be pub- 
lishing pro forma accounts for 
shareholders when it reports 
its interim results on Wednes- 
day, Ur Turcan said. 

lire disposal is part of Har- 
risons’ strategy to reposition 
its businesses. 

However, it was also forced 
on the group in part by the 
Indonesian president’s decree 
that at least 20 per cent of the 
business had to be sold to Indo- 
nesian nationals. Harrisons 
bad been preparing for a flota- 
tion in 1996, but decided to sell 
the whole operation after sev- 
eral approaches. 


Retail growth helps BAA 
to £lllm in first quarter 


By Simon Davies 


Rapidly increasing retail 
income helped BAA turn in an 
11 per cent rise In pre-tax 
profits to £lllm for the first 
quarter to June 30. 

Turnover rose 5 per cent 
Grom £291m to £305m. 

The largest increase came 
from retail revenue, up 8J> per 
cent at £125m, in spite of the 
ongoing programme of redevel- 
oping terminal facilities. 

The company has completed 
the extension of the retail 
areas at Terminals 3 and 4 at 
Heathrow, where double digit 
increases were achieved. 

It is now implementing a 
rolling expansion programme 
which will provide it with 
9004X10 sq ft of retail space by 
1997. It currently has 600,000 sq 
ft of shopping space. 


Passenger numbers grew by 
6 per cent to 22.1m during the 
quarter, and the company, 
which operates seven UK air- 
ports. is predicting that traffic 
growth trill be maintained at 
between 5 and 6 per cent for 
the current year. 

In the most recent set of sta- 
tistics, for June, growth in pas- 
senger throughput had acceler- 
ated to 9 per cent 

Sir John Egan, chief execu- 
tive, said: “Our strategy of 
developing the core business, 
building revenue and control- 
ling costs has enabled us to 
ffa pitali-gg on this growth and 

this confirms our confidence in 
the prospects for the next nine 
months and beyond.” 

He said Gatwick had 
recorded its strongest growth 
for three years, due to increas- 
ing charter tr affic. 


Revenues from airport 
charges rose 5.6 per cent to 
£H7m, while airport property 
income improved 11 per cent to 
£40m (£36m), as new facilities 
came on stream. 

Capital expenditure 

increased by 73 per cent to 
£88m, reflecting the £1.4bn 
spending programme 

announced earlier this year. 
This included a substantial 
increase in spending on the 
£300m Heathrow Express, the 
high speed rail link to Lon- 
don's Paddington station due 
for- completion in 1997. 

Eamings per share were 8p 

am 

The share price fell 20p to 
S53p on profit taking, but ana- 
lysts maintained their full year 
forecasts, with expectations of 
about £370m for the year to 
end-March. 


Tesco considers next move 


By Ne8 Buckley 


City analysts were divided 
yesterday over whether Tesco 
was likely to re-enter the take- 
over battle for Win Low follow- 
ing J Sainsbury’s bid of 305p a 
share for the Scottish super- 
market group on Thursday. 

After Tesco’s failure to 
respond immediately with a 
higher bid, and reports that its 
directors and advisers were 
locked in meetings yesterday, 
there were suggestions that 
the UK’s second-largest food 
retailer was wavering over 
whether to raise its offer. 

Tesco Is thought to have 
expected a bid from Sainsbury 


of about 280p a share, and has 
been wrong footed by the 305p 
offer, which valued Wm Low at 
£210m - a 36 per cent premium 
to Tesco’s original agreed offer 
of 225p a share, worth £154m. 

“I don’t think Tesco had 
really thought through the 
implications of Sainsbury com- 
ing back at that price," said 
one analyst 

A source close to Tesco 
hinted the company was anx- 
ious not to be seen to have 
been pushed into overpaying 
for tiie 57-store Wm Low group. 

Most analysts, however, stfll 
believe Tesco w0I make a bid 
of about 325p a share on Mon- 
day or Tuesday. That would 


leave Sainsbury with the 
choice of whether to push the 
price to 350p or more. 

Others are convinced Tesco 
will itself bid 350p in an 
attempt to guarantee victory. 

“I think Tesco wfll bid 350p 
on Monday,” said Mr Nick 
Babb, retailing analyst at Mor- 
gan Stanley. “1 am beginning 
to wonder if Sainsbury would 
then come back at 400p.” 

Shares in Wm Low fell lp to 
323p. 

However, shares in Wm Mor- 
rison, the north of England- 
based superstore group, gained 
5Vip to I39%p yesterday amid 
speculation that it might 
become a takeover target 


Evans Halshaw buys more 
dealerships for £5.7m 


By Paid Cheesorigtit, 
Midlands Correspondent 


Evans Halshaw, the motor 
distributor, is expanding fur- 
ther from its West Midlands 
base with the acquisition for 
£5. 7m of GT Cars Group, a pri- 
vate company with seven deal- 
erships in the east Midlands 
and South Yorkshire. 

The purchase, foreshadowed 
in June when Evans Halshaw 
la unched a £29m rights issue, 
completes an acquisitions 
programme which, in the last 
year, ham more doubled 
its number of dealerships to 
90. 


“We need to spend the next 
12 to 18 months consolidating 
what we’ve got,” said Mr 
Geoffrey Dale, chairman. 

Consideration for GT is 
£750,000 in cash, £2.7m in 
loan notes and the issue of 
495,050 new shares at 454’Ap 
each, a premium of ll%p on 
yesterday's closing share 
price. 

In a separate transaction, 
Evans Halshaw is paying tim 
in loan notes for the freehold 
of three sites which GT holds 
under lease. 

In the 1993 year, GT reported 
pre-tax profits of £662,000 on 
turnover of £41 42m. 


Tottenham 
buys £2m star 


Tottenham Hotspur, the 
quoted north London football 
dob, has announced its second 
big acquisition in a week with 
the £2m purchase of Jurgen 
Klinsmann, the German 
striker. 

The deal follows negotia- 
tions between Mr Alan Sugar, 
the Tottenham I’ Hntnmm, and 
the Monaco club where Klins- 
mann played until the end of 
last season 

Earlier tins week the club 
agreed to pay £2. 6m for Hie 
Dumitrescn, the Romanian 
striker. 

Both deals will be financed 
from existing cash resources 
anfl hanlrfug facilities. 


<r 


Bow Valley Energy Inc. 


IMPORTANT NOTICE 

to holders of 

Common Shares and 
Class Z Preferred Shares 


Bow Valley mailed a Notice of Special Meeting of 
Shareholders, Notice of Petition and Management 
Information Circular to the holder® of Common Shares and 
Class Z Preferred Shares of Bow Vaffey (collectively, 'Bow 
Valley Shareholders') in connection with a Special 
Meeting of Bow Valley Shareholders to be held on August 
5, 1994 to consider, among other things, an Arrangement 
Involving Bow Valley and Talisman Energy Inc. In that 
Management Information Circular, Bow Valley advised that 
it would pubflsh the Talisman Reference Price (as defined 
In the Management Information Circular) that would 
bo applicable to the proposed Arrangement, as soon as 
possible after that reference price was determined. 

The Talisman Reference Price was determined on July 27, 
1994 tobewuwsbased on the date Tor (he Special Meeting 
being August 5, 1994. 

For purposes of the proposed Arrangement the corre- 
sponding Share Otter Price and Cash Offer Price (as 
defined In the Management Information Circular) were 
determined to besews&ndfuaq respectively. 

Further information regarding these determinations may 
be obtakied by contacting Bow Valley's Investor Relations 
Department, at 1-8CKW62-3166. 


Gordon A Milne 
Senior Vice-President and 
Chief Financial Officer 


Rise at BAT 
Australian 
offshoot 


WD & HO Wills, the Australian 
cigarette manufacturer con- 
trolled by BAT Industries, 
announced a 21 per cent 
increase in profits before tax 
and exceptional in the six 
months to end-June, to AJ42m 
(£20.3m). against A$34.8m. 

Turnover lor the company, 
which is quoted separately on 
the Australian stock market, 
increased from A$444m to 
A$474.7m. Net profits were 
A$27-2m, compared with losses 
of A$7.17m after taking 
account of A$49.2m of excep- 
tional items. 


Beverley 

Shares of Beverley Group, the 
engineering company which Is 


Gt Southern I 
up 11% as | 
SCI buys | 
more shares ! 


Future worries affect the present 


l 


John Gapper on the clearers' prospects in the wake of Lloyds’ results ^ 


tc 


By Simon Davies 


Great Southern Group, the 
besieged UK funeral company, 
yesterday announced an II per 
cent increase in interim profits 
and urged shareholders to 
ignore the current offer by 
Service Corporation Interna- 
tional, the US funeral group. 

However, SCI executives will 
fly into London on Sunday 
night presaging an expected 
increase in their 6O0p a share 
bid for Britain’s third largest 
funeral operator. 

Mr Bill Heiligbrodt, presi- 
dent of SCI, described the lat- 
est document by Great 
Southern as “pathetic". His 
company bought a farther 1.6 
per cent of the company's con- 
vertible shares yesterday, 
showing SCTs commitment to 
the bid. 

However, the bid remains 
opposed by JD Field, Great 
Southern's largest share- 
holder, which owns 56 per 
cent. Members of the Field 
family, and the trustees which 
control 70 per cent of JD Field, 
met yesterday to discuss SCTs 
offer. 

Mr Christopher Stainforth, 
managing director of corpo- 
rate finance at Gninness 
Mahon, JD Held's advisers, 
said: “Everyone is agreed that 
anything dose to £6 is just sot 
enough.” 

Great Southern’s £3.82m 
(£3. 45m) pre-tax profit for the 
half year to June 30 was set 
against a 2.5 per cent decline 
in the mortality rate, and 
operating profits from its core 
business of retail funeral ser- 
vices fell to £2.3 lm (£2 .38m). 

The crematoria and ceme- 
teries operations increased 
profits to £1.12m (£1.02m), but 
the main contributor to 
growth was its pre-paid 
funeral business. Chosen Heri- 
tage. Great Southern sold 
10.500 (9.600) funeral plans in 
the first half and has started 
booking profits from the actu- 
arial surplus of funds held 
from these plans, set against 
the anticipated costs of the 
funerals. This contributed 
£774,000 (£552,000 restated). 

Earnings per share were 
19.7p (17.6p) and an interim 
dividend of 4.5p (4p) is 
declared. An increased final is 
forecast for a I4p (12-2P) total. 

SCI only records profits 
from its “pre-need* policies 
upon completion of the actual 
burial, and it has attacked 
Great Southern’s accounting 
trea tm ent. 

SCI has another week to 
increase its offer. 


O n the basis that it is 
better for a company's 
share price to travel 
hopefully than to arrive, yes- 
terday was a predictably bad 
day for UK banks. Lloyds’ 
arrival at the point of a high 
return on equity, huge cash 
flows and a large dividend rise 
was greeted by a sharp fell in 
its shares. 

The interim reporting season 
of the clearing banks, which 
was started by Lloyds and will 
continue next week with 
Abbey National and National 
Westminster, will show an 
industry in exceptionally good 
shape. But it will also indicate 
reasons why most investors 
think the future will be 
tougher. 

If there were no worries 
about that, Lloyds’ 22 per cent 
return on equity would appear 
manna from heaven. “You rub 
your eyes at the returns," says 
Mr Chris Ellerton. banking 
analyst at SG Warburg. “The 
sector cannot sustain a return 
like that, or everyone would 
want to start a bank." 

One reason that banks* 
results are likely to be so good 
is that bad debts are now foil- 
ing quickly. The credit quality 
of UK companies improved 
strongly in the first half - 
shown by the fail in Lloyds' 
specific ted debt provisions for 
large corporate lending to £7m. 
against £38m. 

Bank shares have already 
fallen sharply this year. This is 
largely because of ti ghtening 
US monetary policy, which 
brought an end to UK interest 
rate falls. The shares of HSBC 
Holdings - parent of Midland 
Bank - and Standard Char- 
tered have also been badly 
affected by unsettled Asia 
Pacific markets. 

The shares have also 
responded adversely to the 
belief that banks face testing 
times. They could ratchet up 
earnings during the recession 
by increasing charges and loan 
margins. But analysts and 
investors now think that their 


UK banks 



1993 

Sourca: FT Graphite 


high profits and capital will be 
frittered away in competition. 

Lloyds’ results reinforced 
this impression in a number of 
ways: 

• Tbe bank’s loans and 
advances to customers fell 
from £39.2bn. at the year-end to 
£38bn at the end of June. Loan 
demand has been subdued 
despite the recovery, although 
Sir Brian P itman , Lloyds' chief 
executive, said a rise in 

demand for irian-c was likely to 

give the bank “a bail-wind" by 
tite year-end. 

• It added a further half per- 
centage point to its tier one 
ratio of capital to risk-weighted 
assets, taking it to 7.1 per cent. 
It could be taken to less than 5 
per cent by the Cheltenham & 
Gloucester acquisition, but it is 
a sign that other banks will 
soon build up capital well in 
excess of their needs. 

• Fees and commissions were 
flat, rising only from £656m to 
£695m. Tim rise in fees was one 
of the main methods by which 
banks improved operating 
income in the early 1990s. tak- 
ing the opportunity presented 
by either losses or profits 
to re-price services to compa- 
nies and individuals. 

• Net interest income in the 
UK retail banking and insur- 
ance business fell marginally, 
from £661m to £655m. The 
bank's mortgage balances grew 
faster than the industry as a 


Aaw oc q 

Sir Robin fobs (left) and Sir Brian Pitman: possibility of lower 
prices for customers to increase market share 


whole, but suffered an erosion 
in margins. Sr Brian empha- 
sised the extreme price sensi- 
tivity of the mortgage market. 

Taken together, analysts 
argue that this means banks 
are building up c as h for which 
they have no use. It will either 
find an outlet in acquisitions 
s imilar to Lloyds’ purchase of 
C&G. or will be handed baric to 
shareholders, or will be used to 
pay for price competition to 
gain market share. 


L loyds mooted all three 
possibilities yesterday, 
although it sounded 
unenihusiastic about the sec- 
ond. Sir Robin fobs, chairman. 
said that it might buy back 
shares as a means of 
distributing capital in the 
medium-term, but only “if we 
found there was no better way 
of using the money”. 

The possibility of price com- 
petition was openly discussed 
by Sir Brian, who said Lloyds 
might lower tbe gap between 
the cost of equity - currently 
at 12 per cent - and the return 
on its equity by lowering 
prices. However. It would only 


do so if it calculated that vol- 
umes would rise to compen- 
sate. 

In practice, analysts believe - 
that banks will have little 
choice but to succumb to price 
competition in an overcrowded 
retail market Mr EUerton rites 
the example of a colleague 
charged a 43 per cent annual 
percentage rate of interest on 
his £500 mortgage, after taking 
fees into account 

“A lot of the charges they 
stuck an in the recession will 
unwind now. They just will not 
be able to hold them,” he says. 
Mr Ellerton sal’s that lower- 
cost finanrial services produc- 
ers such as Lloyds and C&G 
will initiate price wars because 
they will be able to bear com- 
petition more readily. 

This provides an uncertain 
future for bank dividends, after 
tbe large Increases paid out by 
several at the full-year. 

Such is the expectation gen- 
erated by banks' capital 
strength that Lloyds' 14 per 
cent rise was greeted with deri- 
sion yesterday. That win not 
have comforted the banks yet 
to report 


, mini; 


■; hs? 


jin >»i» 


dt 


Capital available for C&G buy 


Sir Brian Pitman, Lloyds Bank's chief 
executive, yesterday expressed confidence 
that the bank would have sufficient capi- 
tal to buy Cheltenham & Gloucester 
Building Society without difficulty given 
its strong cash flow, writes John Gapper. 

Shareholders' equity grew by 10 per 
cent to £3J7bn over the six months to 
June 30 1994 and a further £800m was 
raised in loan capital. The interim divi- 
dend is increased by 14 per cent to 7.5p, 
payable from earnings per share ahead 15 
per cent to 27.1p. 

Analysts estimated that the bank’s tier 


one ratio of core capital to risk-weighted 
assets would fall to about 5 per cent if the 
cash was paid immediately, but Sir Brian 
said the bank could release further prob- 
lem country debt provisions. 

Pre-tax profits from UK retail banking 
and insurance rose to £198m (£130m) after 
a foil in debt provisions from £233m to 
£l82m. Corporate banking and treasury 
profits rose from £108m to £l7Im with 
provisions falling to £7m (£38m). 

Profits from private banking and finan- 
cial services rose slightly to £53m (£5lm). 
Sir Brian said this was because charges 


depended on the value of assets managed, 
and these had been affected by financial 
markets turmoil. 

The overall group net interest margin 
fell to 3JI8 pm- cent (5L33 per cent), despite 
a slight rise in the domestic margin to 
3-98 per cent (3^7 per cent). Sir Brian 
said this was because of growth in over- 
seas assets. 

Balances in non interest-bearing cur- 
rent accounts rose to £3-9bn (£3.5bn), 
while money invested in savings and 
investment accounts fell from £10bn to 
£9.3bn. 


jin 


Lower bad debts boost 
N of England Society 


By Alison Smith 


North of England Building 
Society, which is planning to 
merge with Northern Rock, 
yesterday announced pre-tax 
profits of £8 -21m for the six 
months to June 30. an increase 
of 6.8 per cent on the compara- 
ble £7.7m. 

The rise was largely due to a 
foil in provisions for bad and 
doubtful debts from £787,000 to 
£327.000. 

New gross lending fell to 
£6lm over the period, sharply 
down on the £77.4m advanced 
In the first half of 1993. 

Tbe decline compared with 
the sector average which 
showed a slight rise in gross 
lending. 


The society experienced a 
net outflow of funds totalling 
£l2.6m, against an inflow of 
£28.3m. Total assets rose 
slightly over the six months 
from £L509bn at the start of 
the year to stand at £l.5l4bn, 
compared with £1.49bn a year 
earlier. 

Mr Ronald Shiel chairman, 
said that the merger with 
Northern Rock, the 11th larg- 
est society, had taken much 
time and effort since its 
announcement at the start of 
May. 

He acknowledged that activ- 
ity in the lending and savings 
market had been at a low level 
and said that competition had 
been intense for what business 
was available. 


Conran loan to 
Fitch approved 


An extraordinary meeting of 
Fitch, the design company, 
yesterday approved the provi- 
sion of a loan facility of 
£325,000 from Sir Terence Con- 
ran to the company, and 
granted him options to sub- 
scribe for up to &5m ordinary 
shares - 7 per cent of the 
issued capital. 

Sir Terence already holds 25 
per cent, while the French 
Brand Trust owns 35 per cent. 

Senior managers will also 
have the option to purchase up 
to 30 per cent of tbe company 
from Sir Terence and the 
Brand Trust 

Tbe move was in order to 
“foster a spirit of partnership 
between shareholders and key 
individuals” directors said. 

Fitch cut pre-tax losses from 
£348m to £3.18m for 1993. 


Beacon Investment 
Trust raises £19m 


By Bethan Hutton 


A new investment trust 
specialising in small compa- 
nies traded under Stock 
Exchange Rule 4.2 - until 
recently known as Rule 535.2 - 
has raised £19m through an 
institutional placing. 

The Beacon Investment 
Trust is to be managed by 
Rutherford Asset Management, 
joining a stable of trusts con- 
centrating on CTnaller compa- 
nies. Beacon will seek to 
exploit the opportunities cre- 
ated by London's commitment 
to develop the Rule 42 market, 
seen as a successor to the 
USM. 

Shares in the trust will be 
eligible for Inclusion in per- 


sonal equity plans, which 
should boost its appeal to pri- 
vate Investors. 

The shares have been issued 
at lOQp, having an Initial net 
asset value of at least 96£p, 
with one warrant attached to 
every five shares. The trust 
will have an Initial life of 10 
years. Dealings are due to start 
on August 8. 

The Rule 42 market Is a 
more lightly regulated and 
cheaper home for small com- 
pany shares than the Official 
List It originally operated by 
means of matched bargains, 
but there is growing Involve- 
ment by marketmakers. Com- 
panies using the trading facil- 
ity include football clubs and 
Wee tab ix. 


NEWS DIGEST 


the subject of a proposed 
reverse takeover by the Hong 
Kong-based Far East group, 
were suspended at 6Vkp yester- 
day, pending frill details of the 
deal 

The company is proposing to 
purchase a 51 per coat stake in. 
a Chinese boiler manufacturer 
from Far East Consortium, in 
exchange for new shares, 
which would give the Hong 
Kong company up to 70 per 
cent of Beverley. 


Mr T homas s a i d the consid- 
eration would “not be material 
in relation to Whitbread's net 
assets.” 


IT 


Zetters 


Whitbread 


Whitbread has agreed outline 
terms to buy a German restau- 
rant chain which will give the 
brewing, retailing and leisure 
group a portfolio of sites in 
every German city by adding 
26 outlets to its existing 37. 

Mr David Thomas, managing 
director of Whitbread Restau- 
rants and Leisure, said the 
Moredo chain of steak restau- 
rants would complement Whit- 
bread's Churrasco business. 


Zetters Group, the football 
pools promoter, yesterday 
reported a 15 per cent increase 

tn annual profits. 

On turnover of £23m (£22m), 
and despite lower interest 
receivable of £181.000 
(£320.000), the pre-tax line for 
the year to March 31 advanced 
from £680,000 to £l.Q2m. 

Earnings per share were 
lG.lp (8_9p); a recommended 
final dividend of 4.5p brings 
the total for the year to 8fip 
(8p), the first increase since 
1991. 


TI Group, the specialist engi- 
neering and aerospace com- 
pany, yesterday said that Mr 
Werner Dieter, the out-going 
chief executive of Mannes- 
mann. the German en gineeri n g 
group, had decide to postpone 
joining the board as a non-ex- 
ecutive director. 

He is understood to have 
delayed joining until an inves- 
tigation has been completed by 
the Dtisseldoif state prosecutor 
into allegations that Mr Dieter 
forced Rexroth, a Mann esmann 
subsidiary, to buy products at 
inflated prices from Hydac, a 
company largely owned by Mr 
Dieter’s family. 


The fourth quarterly divi- 
dend is maintained at l.875p to 
give a same-again total for the 
year of 7.5p. 

Net asset value for the zero 
dividend preference shares, 
designed for capital apprecia- 
tion, was l37.64p and for the 
ordinary shares, sujp. 


Earnings per share were 
60 .5p (53.79p). A final dividend 
of n,35p is recommended, to 
give a total of l&98p (14.08p). 


1 DIVIDENDS ANNOUNCED 1 



Current 

payment 

Data of 
payment 

Cones - 
ponding 
(Mdertd 

Total 

for 

Year 

Total 

last 

year 

Bsstric & Gen 

— fin 

1.65 

Sept 23 

1.6 

32 

3.1 


_fln 

11.35 

Sept 29 

10.04 

15^8 

1408 

Great Southern § int 

4.4 

Oct 3 

4 

_ 

1 Z2 

Groavenor Inns § — 

_fin 

2J»t 

Oct 7 

225 

4.75 

425 

Lloyds Bank 

int 

7-5 

Oct 13 

6.6 

. 

22.1 


— fin 

4.5 

Oct 4 

4 

05 

S 


Dividends shown panes per share net tOn Increased capital. §USM stock. 


John Lusty 

John Lusty Group, the 
USM-quoted food importer, 
reported reduced pre-tax losses 
of £633400 for the 14 months to 
January 3L against £2_25m for 
the previous 12 months. 

Turnover was £8. 65m 
(£8.68m) of which £404.000 
(£740,000) related to discontin- 
ued activities and £1.48m to 
acquisitions. Operating losses 
were £513,000 (£1.93m) with 
£40,000 (£52,000) from discontin- 
ued activities. Acquisitions 
contributed profits of £113.000. 

Losses per share were L46p 
(19.38p). 


Electric & General 

Electric & General Investment 
had a net asset value of 2LL3p 
at May 31, a 14 per cent 
improvement on the 185 .Sp of a 
year earlier. 

Earnings per share for the 
year were 3.3p (321p). 

A final dividend of 1.65p 
(1.6p) makes a total of 3.2p 
(3-lp). 


TT/Dale 

TT Group yesterday sent its 
offer document to shareholders 
of Dale Electric International 

The recommended offer, of 
70.25p cash per share, values 
the North Yorkshire-based gen- 
erator manufacturer at £l6m 
and represents a premium of 17 
per cent over the Dale share 
price prior to the announce- 
ment. There is also a l-for-5 
share alternative. 

TT owns or has agreed to 
acquire 3-61m Dale shares, rep- 
resenting about 15.8 per cent 
Including acceptances, it has 
19.3 per cent 


Green Property 

Green Property, the Dublin- 
based investment group, 
announced sharply improved 
interim profits as it drew bene- 
fit from the acquisition of Na 
Mara Investments in February. 

Pre-tax profits for the six 
months to June 30 jumped to 
I£2.05m (£2. 02m) against 
15860,000 last time, and took in 
a surplus of I£l.Q9m from the 
sale of properties acquired 
with Na Mara. 

Earnings per share were 
6.7 3p against a restated 3A2p. 
The interim dividend is again 
1.2p, payable on capital 
increased by the rights issue 
earlier this year. 


Wm Ransom 


Kleinwort High 

Net revenue for the year to 
end-June at Kleinwort High 
Income Trust rose from £2£7m 
to £24Im, to give an increase 
in earnings per share from 
ISSp to 8.05p- 


Fomunster 

Forminster, the clothing manu- 
facturer. lifted pre-tax profits 
from £2.2m to £2. 4m for the 
year to April 30. on turnover 
up from to £25£m. 

The company is seeking to 
increase sales by "organic 
growth, or acquisition, when- 
ever there is an appropriate 
onTOThmitB” csM Mr Ronald 


A legal settlement of £325,000 
helped William Ransom 
increase pre-tax profit by 13 
per cent, from £817.000 to 
£925.000, despite a fall in turn- 
over from £7. 19m to £&83m. 

The settlement related to an 
abortive move to Biggleswade 
for the pharmaceutical prod- 
ucts maker. 

Earnings per share were 
4_18p (3.49p). A final dividend 
of 1.22P gives a total of lB89p 
(1.903p). 





FINANCIAL TIMES WEEKEND JULY 30/ JULY 31 1994 


11 


INTERNATIONAL COMPANIES AND FINANCE 


Two US healthcare groups 
agree to $720m merger 


By Richard Waters 
In New York 

The spate of mergers among 
health maintenance organisa- 
tions (KM Os.) in the OS contin- 
ued yesterday with the 
announcement of a $720m all- 
stock merger of two groups 
with operations concentrated 
In western states. 

Foundation Health, a com- 
pany based in California which 
has recently concluded a series 
of acquisitions in the south- 
east, said it bad reached agree- 
ment to acquire Arizona-based 
Intergroup Healthcare. It is to 
pay $444m in stock for Thomas- 
Davis Medical Centres, which 
owns 63 per cent of Intergroup. 
In addition. Foundation is 
offering a choice of ordinary 


By NHrfd Talt in Sydney and 
Kenneth Gooding in London 

The go-ahead has been given 
for a further expansion of the 
Escondida copper mine in 
Chile at a cost of US$S20m. It 
will make Escondida the 
world’s biggest copper mine by 
mid-1996 and also turn Broken 
IBB Proprietary, which entered 
the business only five years 
ago, into the world's leading 
producer of traded copper. 

RTZ of the UK, the world’s 
biggest mining company and 
one of the partners in Escon- 
dida, will move ahead of 
Phelps Dodge, the biggest US 
copper producer and be not far 
behind Codelco, the state- 
owned Chilean group that cur- 


By Emiko Terazono 
in Tokyo 

Profits at Sapporo Beer, the 
Japanese brewer, rose sharply 
for the first six months to June 
due to a rise in demand and a 
decline in operational costs. 
Non-consolidated pre-tax 


stock or convertible preference 
shares to holders of the 
remaining Intergroup ghaww; 

Together, the two would 
cover lm individuals through 
their HMO operations and 
have annual revenues of 
$2.4bn, creating a company in 
the top dozen of that US sector. 

HMOs are rapidly replacing 
traditional health insurance 
companies in the US. Unlike 
insurers, they actively manage 
the provision of healthcare to 
the individuals they cover in 
order to bring down costs. 

The wave of acquisitions in 
the sector marks an attempt by 
the bigger organisations to 
spread their administrative 
and marketing costs across a 
bigger customer base, to 
increase their bargaining 


production league. 

The new expansion will lift 
EscamMa’s annnal production 
capacity from 480.000 tonnes of 
copper to an average of 800.000 
tonnes. 

Construction will start 
immediately. The increased 
tonnage will start to build up 
from the second half of nmrt 
year and output at the higher 
level will last to 2000. 

Escondida will increase sup- 
ply of copper concentrate (an 
inte rmediate material ) to local 
smelters - amiw g them 
owned by Ena mi, Codelco and 
Refimet Following expansion, 
about 30 per cent of the mine’s 
production will be refined in 
Chile. 


profits rose 4L2 per cent from 
a year earlier to Y6.9bn 
($66 Am) on a <L3 per cent rise 
in sales to Y287.4hn. After-tax 
profits rose 8.9 per cent to 
Y&2bn. Sales of the company’s 
mainstay beer rose 3 per cent 
to Y238J.bn. with sales volume 
increasing 1 per cent Operat- 


power with healthcare provid- 
ers such as hospitals and to 
extend their networks into 
other regions in the country. 

The Intergroup deal 
appeared to mark the growing 
competition to acquire smaller 
HMOs. The price being offered 
was well ahead of market 
expectations the day before, 
when Intergroup confirmed it 
was in discussions with an 
unnamed bidder. Yesterday 
morning, its shares rose $10% 
to $58 after a jump of $9% the 
day before. 

Foundation said the stock it 
had to issue in the deal would 
cut its earnings per share by 35 
cents next year. But it expec- 
ted lower costs and the oppor- 
tunity to sen new services to 
Intergroup's customers. 


Production started at the 
S824m Escondida open pit mini? 
in 1990, and been expanded 
twice - costing $76m and 
$200m respectively. 

BHP, Australia’s biggest 
company, owns 57.5 per cent; 
RTZ has 30 per cart; a Japa- 
nese consortium led by Mitsu- 
bishi. 10 per cost; and Interna- 
tional Finance Corporation. 2.5 
per cent. 

The news left BHP shares 32 
cents higher at A$19.Q2 in Aus- 
tralia yesterday, in a generally 
firmer market 

RTZ pointed out that Escon- 
dida produced about 389,000 
tonnes of copper last year and 
contributed £S6m ($55 .4m) to 
RTZ’s net earnings totalling 
£373m. 


ing profits rose 51 per cent to 
YU.2bn due to a Y5bn cut in 
material, distribution, and 
advertising costs. 

The company expects full- 
year pretax profits to rise 4 
per cent to YllJihn an a 9 per 
cent increase in sales to 
Y620bn. 


Groupe Bull 
reduces loss 
to FFr843m 
in first half 

By David Buchan in Pals 

Groupe Bull, the state- 
controlled French computer 
company, yesterday said it had 
brought its net current loss for 
the first half of this year down 
to FFr843m ($l52m). or less 
than half its FFrl.98bn loss for 
the same period of 1993. 

Mr Jean-Marie Besearpen- 
tries, president, claimed his 
goal for the group to break 
even on Its operational results 
for the whole of 1994 “now 
appears achieveable", and Bull 
was “now positioned for priva- 
tisation*' . 

The European Commission 
has still to rule on whether the 
French government can go 
ahead with a FFr2. 5 bn capital 
increase for BnD, and whether 
a similar FFr7bn allocation 
last year to Bull was permissi- 
ble. 

Bull has said It needs th»s 
aid to counter the effect of 
chronic past losses. The latest 
sharp reduction in Bull’s 
losses will not necessarily 
weaken French arguments in 
Brussels for the state aid, 
which can perhaps now more 
plausibly be represented as a 
rational investment rather 
than money disappearing into 
a bottomless pit 

Bull reduced its operating 
loss to FFr433m in the first six 
months of this year, compared 
with FFrl^bn In the same 
period a year earlier. Turnover 
rose 11 per cent to FFrl3.85bn, 
with the strongest growth 
recorded in the personal com- 
puter division of Zenith Data 
System whose Bales rose 55 per 
cent on a year earlier. Bull 
said stringent cost and salary 
restraints accounted for the 
improvement 

Last month, the French gov- 
ernment invited tenders for 
banks to act as advisers on 
Bull’s privatisation. At the 
same time Mr Descarpentries 
has tried to reinforce the 
group's links with NEC of 
Japan which holds a 4.4 per 
emit stake in BnlL 


Escondida mine to expand further 

renily heads the world copper 


Strong demand lifts Sapporo Beer 


Credit Suisse falls 27% to SFrl.8bn 


By Ian Rodger in Zurich 

Credit Suisse, flagship bank of 
the CS Holding financial ser- 
vices group, has kicked off the 
big Swiss banks’ interim result 
season with a disappointing 27 
per cent fall in pre-tax profits 
to SFrI.76bn ($JJhn). 

A 35 per cent decline in 
income from trading to 
SFr&iam was accompanied to' 
a 15 per cent drop in net inter- 
est income to SFrl.29bn- Of the 
bank's three main sources of 
earnings, only commission 
business showed growth, 
advancing 10 per cent to 
SFrL35bn. 

The group gave no figure for 
net income, but said it was 

WMX plans 
to buy back 
unit’s shares 

By Laurie Morse si Chicago 

WMX Technologies, the 
international waste hauler 
based in Chicago, pi ang to buy 
back all of the publicly-held 
shares of Chemical Waste Man- 
agement, its hazardous waste 
handling subsidiary, through 
an exchange of stock, essen- 
tially merging the two compa- 
nies. 

The company said it was 
planning a review or its 
operations, hinting that it may 
undergo a second restructuring 
In as many years. 

WMX Technologies, formerly 
known as Waste Management 
intends to issue 12.1m shares, 
valued at nearly $353m, to 
regain full ownership of Chem- 
ical Waste Management In a 
tax-free transaction. 

Chemical Waste Manage- 
ment shares were up $% at $8'/« 
at midsessian in New York yes- 
terday, while WMX Technolo- 
gies were unchanged at $29%. 

WMX already owns 78.6 per 
cent of Chemical Waste’s out- 
standing shares and intends to 
exchange (L27 of its own shares 
for pnp share of chginimi 
Waste's common stock it does 
not own. Chemical Waste's 
public shareholders need to 
approve the transaction. 


slightly down on the result In 
the comparative period dueto a 
less acute need for provisions 
for bad loans. 

Of the big three Swiss banks. 
Credit Suisse is known as the 
most dependent on trading of 
foreign exchange, precious 
metals, interest rate instru- 
ments and securities. 

Last year, with all markets 
rising, this was the group’s 
largest source of income, 
accounting for 37 per cent of 
total receipts. 

The bank said income from 
foreign exchange, precious 
metal and banknote trading in 
the first half remained only 
slightly below last year’s level, 
but the slump in international 


stock and bond markets hit 
bard. 

The de clin e in net interest 
income was attributed to nar- 
rower interest rate margins, 
especially in the Swiss market, 
and to stagnant lending vol- 
umes. Credit Suisse said inter- 
est margins were extraordi- 
narily high in the first half of 
1993. 

The June 30 balance sheet 
showed a SFr3.6bn decline in 
lendings to SFrl20.3bn since 
the end of 1993, but the bank 
said this was due to the weak- 
ness of the US dollar. 

The contribution from Credit 
Suisse Financial Products, the 
bank's 50 per cent-owned deriv- 
atives house, "matched last 


year’s extremely good results . 
But earnings of Swiss Volks- 
bank, acquired last year by CS 
Holding and now consolidated 
with Credit Suisse, “are not yet 
satisfactory". 

• Vontobel, the Zurich-based 
private hankin g and asset man- 
agement group, reporting 
interim figures for the first 
time, posted net income of 
SFrI9.8m in the first six 
months of 1994. 

No comparative figures were 
given. In toe full year 1993. the 
group had net income of 
SFr-HUm. 

The group said it suffered a 
loss of SFrS.Tm on trading of 
its own securities holdings in 
toe first half. 


Hazardous 
waste charge 
dents Aetna 

By Richard Waters 

Expected liabilities from the 
clean-up of hazardous waste 
sites pushed net income at 
Aetna, the US insurance group, 
down 8 per cent in its latest 
quarter, compared with a year 
before. 

Concern that the company 
may harbour other pollution- 
related liabilities pushed 
Aetna's share price down S3*4. 
or nearly 7 per cent, to $51^«, 
during morning trading in 
New York. Uncertainty about 
the scale of environmental 
clean-up costs remains the big- 
gest concern overhanging the 
US property-casualty insurance 
industry. 

The Connecticut-based com- 
pany said in the three months 
to toe end of June it had set 
aside additional reserves to 
cover environmental indem- 
nity claims, resulting in an 
after-tax charge of $64m. 

The unexpected charge led to 
a $3 2m operating loss in 
Aetna’s commercial proper- 
ty/casualty business -during the 
second quarter, compared with 
a profit of $25m a year before. 

The losses were offset in part 
by advances in life and health 
Insurance businesses, as well 
as financial services. 


Austrian bank hit by 
trading income drop 


By Ian Rodger 

Creditanstalt-Bankverein (CA), 
the Austrian bank in toe midst 
of privatisation negotiations, 
has reported a 17 per cent 
decline in pre-tax profit in the 
first half to Schljbn ($165m) 
due to a steep fall in trading 
income. 

Meanwhile, the Austrian 
finance ministry has decided to 
commission an investment 
bank to evaluate bids by CS 
Holding of Switzerland and a 
consortium of Austrian, Italian 
and German investors for a 
large portion of the govern- 
ment’s 70 per cent voting stake 
in CA. 

A decision is expected after 
the Austrian general elections 
on October 9. 

CA, Austria’s second hugest 
bank, said it expected an 
improvement in second-half 
trading and net interest 
income, but forecast pre-tax 
profit for the full year would 
be lower than last year’s 
record Sch5.4bn. However, it 
was confident that net income 
would be higher as a result of 
lower provisions for bad loans. 

CA saw income from own 
account trading slide 45 per 
emit to Sch455m in the first six 
months of 1994. The bank's 
so-called partial operating 



Guido Schmldt-Chiari: 
chief executive 


profit, which excludes trading, 
was up 11.7 per cent to 
Schl.35bn. 

Mr Guido Schmidt-Chiari. 
chief executive, said provirions 
in the first half were less than 
Schl.5bn compared with 
Scb3.8bn in the whole of last 
year. Total assets at the end of 
June at Sch573.4bn were only 2 
per cent higher than, at the end 
of 1993. 

Precise consolidated results 
were not available, but CA said 
its group pre-tax profit was 
down 13 per cent to just over 
Scb2.6bn. 




mr 








ieES 

CS. 


m- 


'£v 


w 


t 




m 




FINANCIAL IZVESTIA 
TALKS BUSINESS TO 300,000 
INFLUENTIAL RUSSIANS 
EVERY THURSDAY. 

Financial Izvestia is an 8-page weekly business 
newspaper produced by the Financial Times in partnership with 
Izvestia, Russia’s leading independent daily. 

Printed on the FT’s distinctive pink paper, it accompanies 
Izvestia every Thursday. 

Drawing on the huge editorial network of both 
newspapers, it brings up to the minute, accurate, national and 
international news to 300,000 decision makers in Russia. 

News from around the world that impacts upon the Russian 
market, making Financial Izvestia an essential and unique 
business tool for those shaping the new Russia. 

To find out more about advertising to these influential 
people call Ruth Swanston at the Financial Times in London 
on 44 71 873 4263 (fax 44 71 873 3428), Stephen Dunbar- 
Johnson in New York on I 212 752 4500, Dominic Good in 
Paris on 33 1 42 97 06 21, Sarah Pakenh am- Walsh in Hong 
Kong on 852 868 2863. 


FINANCIAL TIMES 

10WON MUi HUUIIII MW TO*, TO* lO 







12 


FINANCIAL. TIMES WEEKEND JULY 30/JULY 31 1994 


WEEK IN THE MARKETS 


Copper 
leads rally 
at LME 


The London Metal Exchange 
copper market ended the week 
in a more constructive mood as 
speculative buying repaired 
some of the damag e done by 
earlier heavy sellin g . 

US investment funds were 
again the driving force behind 
a 5100-plus plunge that took 
the three months delivery 
price below 82,400 a tonne at 
one point on Wednesday. The 
later recovery, which was 
capped by resistance at S2.450, 
left the price S72 down on the 
week at $2,442^0 a tonne. Deal- 
ers told the Reuters news 
agency that this reflected an 
“unsurprising” technical cor- 


un WAREHOUSE STOCKS 

(As at Thirsday's dose) 


Murinum 

-11325 

<0 2523350 

Alumlnfum dtoy 

-800 

to 28580 

Copper 

-225 

to 328.650 

Lead 

-1.075 

to 350.025 

factual 

-034 

M 133^44 

Ztoc 

+1J£0 

to 1 J14JI7S 

Tin 

-110 

tosa.asa 


rectum. 

Copper's rally helped to 
stiffen other LME contracts, 
notably aluminium, which was 
also aided by another big draw- 
down from exchange ware- 
house stocks. The 16.525-tonne 
fall to 2J>23,950 tonnes took the 
total stocks decline from the 
mid-June peak to 137,575 
tonnes. The three months price 
closed yesterday at S1.478S0 a 
tonne, still $31.50 down on the 
week but $5450 above Wednes- 
day’s low. 

Other base metals also 
moved off their lows, but only 
Lead and nickel ended the 
week with net gains. 

In contrast, the platinum 
price was in retreat on Thurs- 
day and yesterday from 3Vi- 
year highc reached eaHinr jn 
the week. 

The surge to $427.50 a troy 
ounce was prompted by com- 
ments made in Tokyo by Mr 
Michael Steel, market research 
director of Johnson Matthey. 
the world's biggest platinum 
marketing group. In a Reuter 


WEEKLY PRICE CHANGES 


Latent Change Year 
prices on week ago 


GoU per tray ot 
SOver per tray cc. 
AlumMum 89.7% (cash) 
Copper Grads A (cash) 
Used (Cash) 

Mcfcei (cash) 

Zinc SHG (cash) 

Tin (cash) 

Cocoa Futures Sep 
Cotfes Futures Sep 
Sugar (LDP Raw) 

Barisy Future Nov 
Wheat Futures Nov 
Cotton Outlook A Index 
Wool <S4s Super) 

Q« (Brent BancQ 

Per tom irtere o d wra toe s 


S38&90 
342. 50p 

51 450.00 
S243&50 

5564.00 

58212.00 
SS4$50 
S5205 
£1124 
S3410 

5301.0 
£104 JO 
£10520 
8235c 
440p 
siasix 


S405.75 

3824Gp 

Si 19625 

S19714 

S392JXJ 

S4888.0 

S82S4 

$48374 

£748 

SI 037 

$2432 

£103.40 

£10725 

56550 

353p 

*1678 


1994 — ■ 

High Low 

$39660 $358 

384 JOp 336: 

$1529.50 $110 

$2521.00 $173 

$692.0 $428 

38490 5521 

5101 4 $900 

$58560 $473 

£1124 £859 

$3828 *117 

5309.4 S252 

£105.50 £92.1 

£117 JO £97.1 

87.10c 62.4{ 

440p 342p 

*18.81 *111 


$369.60 

3363(4) 

$1107.50 

$1731.50 

$4260 

S5210.0 

$900J 

$47360 

£859 

*1175 

S2S2J 

£92.85 

£97.80 

62.45c 

342p 

*1116 


. p Pancafft p . c Cem b. x Sep 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red Day: 

Coupon Date Price chare; 


Australia 9.000 

Belgium 7250 

Canada* 6600 

Denmark 7.000 

Francs BTAN 6000 
OAT 6500 
Germany Buid 6750 

Italy 6500 

Japan No 11B 4.800 

4.100 

NettwtsndB 6750 

Spain 6000 

UK QMS 6000 

6750 
9.000 

US Treasury * 7.250 

6260 

ECU (French Govt) 6000 


US Treasury ' 


ECU (French Govt) 6000 
London rtostfig. Unr Yort mid-day 
t Grans (Inducing n W ilidcflnQ Mat 
Pncew US. UK In 32nda. athm In d 


Price 

Day's 

change 

YMd 

Week 

ago 

Month 

«90 

913400 

+0.320 

9.57 

054 

9.64 

9S3000 

+0.660 

TJX 

TAT 

OOO 

82.0000 

+0.860 

9.10 

9.16 

9.27 

B3.T600 

+0250 

7.96 

TSO 

047 

104.7500 

+0250 

5^4 

8.58 

6.90 

88D400 

+0460 

7J5 

7.31 

7j80 

99.4100 

+0600 

6.83 

1B4 

7^17 

808000 

+0200 io?et 

1054 

1053 

104.7330 

_ 

3.66 

3£T 

3.48 

900720 

- 

4^9 

43* 

426 

903200 

+0680 

8.88 

108 

7.11 

85.4000 

+0.000 

1044 

1037 

1086 

00-22 

-302 

031 

7.92 

8.32 

80-03 

+12/32 

150 

12S 

063 

103-08 

-8/32 

060 

039 

066 

101-02 

+-45/32 

7.10 

7.28 

7.34 

88-10 

+64/32 

7.40 

757 

7.62 

07.9700 

+0190 

7.B0 

7.78 

on 


12J per cent poyatM by i 


YWd* Local naM mndanL 
kfanM 

Souks: MM* MvnaOtmtf 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Meeting of foreign 
ministers in Geneva to decide 
next steps in Bosnia peace 
effort. 

TOMORROW: Deadline for 
Japan to open up public con- 
tracts in telecommunications 
and medical technology pur- 
chases in order to avoid sanc- 
tions. Mr Hosni Mubarak, pres- 
ident of Egypt, and Mr Yitzhak 
Rabin, prime minister of Israel, 
are expected to meet at the Red 
Sea resort of Taba. 

MONDAY: MO figures (July). 
US personal income/spending 
(June); NAPM (July): construc- 
tion spending (June). South 
African parliament due to 
reconvene. Interim statement 
from Abbey National. 
TUESDAY: Advance energy 
statistics (June). UK official 
reserves (July). Bank of 
England quarterly bulletin 
(third quarter), US new home 
sales (June). Interim results 
from. BP and National West- 
minster Bank. 

WEDNESDAY: Major British 
banking groups' quarterly 
analysis of lending (second 
quarter). Full monetary statis- 
tics (including bank and build- 
ing society balance sheets, bill 


turnover statistics, lending 
secured on dwellings, official 
operations in the money mar- 
ket. sterling certificates of 
deposit and sterling commer- 
cial paper (June). Overseas 
travel and tourism (May). US 
leading indicators (June); fac- 
tory orders (June). RMT signal- 
men stage 24-hour rail strike, 
starting at noon. The Institute 
of Directors publishes results 
of survey on White Paper on 
compe titiveness. 

THURSDAY: Details of employ- 
ment, unemployment, earn- 
ings, prices and other indica- 
tors. Housing starts and 
completions (June). Interim 
results from Glynwed, Zeneca 
and TI Group. 

FRIDAY: Family spending - a 
report on the 1993 Family 
Expenditure Survey. Index of 
production (June). Cyclical 
indicators for the UK economy 
(July). Insolvency statistics 
(second quarter). Bankruptcy 
statistics (second quarter). US 
employment data (July); con- 
sumer credit (June). Japan bal- 
ance of payments (June). 
North Korea and the United 
States are expected to resume 
high-level talks in Geneva. 


COMMODITIES AND BOND PRICES 




interview he suggested that 
Japan might this year import 
record quantities of platinum 
and its sister metal palladium 
(both are used in motor 
exhaust catalysts) and that the 
world platinum supply surplus 
might disappear by 1995. That 
also helped to lift the palla- 
dium price to a five-year high. 

Platinum had become over- 
bought, however, and by yes- 
terday’s afternoon “fixing'’ at 
the London bullion market the 
price was back to $419.50 an 
ounce, up S8 on the week. 

Gold had been towed along 
in the wake of the platinum 
group metals but the dollar’s 
late strength brought a reac- 
tion in the price, which ended 
80 cents lower os balance at 
8383.90 an ounce. 55.45 off its 
midweek peak. 

Coffee remained the most 
volatile of the commodity mar- 
kets with it’s prices fluctuating 
in the wide trading range cre- 
ated by the spectacular gains 
that followed recent Brazilian 
frosts. 

The September futures price 
at the London Commodity 
Exchange touched bottom on 
Monday at $3,362 a tonne as 
traders awaited publication of 
the official assessment of the 
damage done by the frosts and 
analysts reduced their damage 
estimates. 

When the official assessment 
came on Tuesday night it 
showed a coffee bean loss at 
the top end of the range of 
analysts’ estimates and 
future’s prices recovered some- 
what But the sellers were soon 
back in the driving seat and. 
with no more frost thought 
likely this weekend, the Sep- 
tember futures position closed 
yesterday at 83,415 a tonne, 
down $43 on the day and $213 
on the week. 

The Brazilian industry 
commerce minis try put the 
frost losses from the 1995-96 
coffee crop, which had previ- 
ously been projected at 26_5m 
bags (60kg each) at nearly 11m 
bags, or 40 per cent Analysts 
revised estimates had mostly 
been between 6m and 9m bags. 

Industry pud commerce min- 
ister Frederico Robalinho said 
the official figures were prelim- 
inary. but added “they will 
only change a little". 

Richard Mooney 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices ton Amalgam**! Metal Traomgj 
■ ALUMINIUM, 89.7 PUggY g pec Wo) 

Cttb 3 mthe 

Close 1449-51 1478-79 

Previous 1426J-27J 1454-55 

HlgWtow 1446 148371462 

AM Official 1445-06 1471-72 

1483-4 


Precious Metals continued 

1 OPLP COMEX (100 Tray re.: £*» y re) 


GRAINS AND OIL SEEDS 

■ WHEAT LEE (E w tonne) 


SOFTS 

■ COCOA LCECEftomel 


Sea Day's 

PWR 1W9G 


3 ca Omft 

pda rereps 


«*> tow 


SMI Deft 


MEAT AND LIVESTOCK 

■ 1 UVE CWWf CMC (■KXOOBSfc Conta.Ha? 
SeB Day's Opm 


price cftMpo Man Low tat M 


Close 1449-51 

Previous 1 426J-27 J 

Hlghtow 1446 

AM Offlcffll 1445-46 

Kerb ctoae 

Open kit 284.023 

Total daily mow 65376 

■ ALUMINIUM ALLOY (S per tonne) 

Clow 1480-85 

Previous 1445-50 

Highriow 

AM Official 1475-65 

Kerb ctoae 

Open kit 2.836 

Toted daffy turnover 590 

■ LEAD (S per tonne) 

Close 5665-84.5 

Previous 583-84 

MgMow 

AM Official 584-84.5' 

Kerb dose 

Open ire. 41,681 

Total CaJy tunover 6480 

■ MCKB. (S par tonne) 


*1 

3SU 

-T.fl 

3850 

3815 18i27 21.715 

Sap 

:c*60 

-080 

10500 

1BL40 

378 

IS 

M 

1124 

-S3 

1124 

Sag 

3M5 

■13 

• 

- 

. 

mt 

IGSJO 

-093 10100 

10520 

£305 

144 

s* 

1124 

•47 

1129 

Oct 

3001 

•1.9 

3880 

38SJJ 9275 

1.388 

Jm 

1074S 

■025 

laaco 

107 JO 

1.B37 

115 

Dec 

1134 

*40 

1134 

Ose 

3302 

-20 

391 J) 

38U 71.074 25.: 25 

Nr 

1(520 

■aw 

ttoco 

10920 

878 

40 

Mr 

1153 

+43 

1154 

Ml 

3905 

-2.1 

3943 

392.1 10.615 

54 

•**7 

Illfr) 

-09Q 

111.90 

nun 

343 

31 

«W 

USD 

+4t 

1160 

4pr 

3909 

>22 

3984 

3912 6JZ2 

36 

Jd 

IIUS 

-125 

11450 11125 

147 

• 

Jd 

1166 

+40 

- 

Total 




141821 

09.199 

Total 





*980 

351 

Total 





m PLATINUM NYMBC (SO Tray ozj S/auy re) 


■ WHEAT GST gvQOCEu mfn; esna/BOto bushel) 


Jd 1166 +40 4,179 

Teal 106318 $434 

■ COCOA CSCE (10 tonnes; S/tomee) 


price ctaapt m tow W W 

6B.8S0 *0500 68875 B7J5D 3.17! 4,37 
71. 73S *6*3 71 MO 70800 2*300 « K5 
70700 +0130 70950 76150 12.737 1.J40 
66675 *403 66975 66400 6941 7K 
76575 •0.1® 71.000 76700 37 

67825 +6075 67950 87750 1733 19 

7$B70 11J44 


ilJfBS j 


■ UVE HOGS CME(40flWtaiCCnWfc«) 



Oct 

*&T 

•12 

4275 

*211 24503 

5221 

SM 

330** 

•14? 

33f/4 

3298) 

17236 

3,133 

Sep 

1490 

+*5 

1S2S 

1448 33, an 3,074 

**l 


J* 

4287 

♦LD 

*305 

*250 2.4S4 

44 

Doc 

344/2 

■072 

344.8 

3*2,0 32559 

5^8 

Oac 

1632 

+43 

1S6S 

1492 19688 

960 

Oct 

1495-500 


4312 

+U) 

• 

- 1.787 

9 

tear 

350,2 

+to 

3S0/4 

3*rW 

$,gr 

70* 

Mar 

1564 

+38 

1605 

1535 73*7 

81 

Dec 

1455-50 

Jd 

437 2 

•1.0 

. 

■ 1 

. 

ton 

2*24 

•0/4 

3*3/2 

341/2 

422 

48 

May 

1582 

*38 

- 

- 235* 

1 

tab 

1515/1475 

Oct 

44 \2 

-1A 

• 

• 1 

• 

Jd 

mo 

-09 

329 « 

323/0 

5,004 

T59 

Jd 

1602 

+38 

- 

• 2J44 

• 

Opr 

1490-500 

Total 




28201 

525* 

Dee 

mo 

-Offl 


. 


- 

Sap 

1922 

+38 

- 

- 1.092 

■ 

■tee 

1485*500 

■ PALLADIUM NYMEX HOC Troy $/*rsy eU 

Teal 





9M15 

VK 

Total 




22996 4.T18 

Total 


600-1 

599-601 

603/596 

eoas-1.5 

002-3 


sag 

1S3JS 

+1*0 153.75 15025 

*.629 

149 

0« 

152.75 

-i05 15375 149.00 

1^C5 

22 

Mar 

1522 

•2^ 

- 

- 

182 

1 

Intel 





037B 

171 

■ 9LVST COMEX (100 Trey at.-. Cansrtray cc.) 

Aeg 

531.7 

-2.0 

- 

- 

. 

. 

Sag 

m2 

-2J) 

53SD 


77X26 

9.255 

Oac 

540.4 

-2.1 

5415 

532L0 24^29 

519 

Jw 

5420 

•il 

- 

- 

22 

■ 

Use 

541* 

-22 

5*9 J) 

5410 

60S 

19 

May 


■22 

55*JJ 

55*j0 

1317 

22* 


■ MAGEE CST (5,000 bu min; cereV560i bushel) 


S«p 21878 +2S Siao 217/0 *65» 6*62 

Dee 732.-0 -26 222'* 22M121J1B 16175 

Usr 23113 -2V 231/2 2298) 26029 1339 

Itay 237* -28 23774 735/i 6160 7*8 

Jd 241.-4 -26 2*1/4 2306 BJ04 519 

Sep 2424 +1/4 242/4 241/4 90 22 

totd 216813 26*86 

■ BARLEY LCE (C per teme) 


Jd 28 
D3*y 


Price 
... 108203 


* COFFEE LCE tt/tame) 


Ctoae 

Previous 

Htghriow 

AM Official 

Kerb dose 

Open int 

Total dady turnover 
■ TIN (S per tonne) 

6207-17 

6130-40 

6215 

6210-15 

56.518 

8.7BS 

5295-305 
6220-3 0 
6330/6260 
6290-95 
6280-90 

Ctoae 

5200-10 

5275-85 

Previous 

51 90-200 

5269-70 

HtghAcm 


5320/5260 

AM Official 

5217-32 

5290-305 

Kerb dose 


5250-60 

Open Int 

18,080 


Total daily turnover 

3X187 



I^WI 


tC3£0 

-OS 


- 

93 

. 

104 JO 

4X00 

ic&ao 

1 0480 

470 

30 

)C6J5 

-050 

10075 

10050 

44 

7 

10790 

4X75 

- 

- 

38 

- 

100.75 

-050 

• 

- 

1 

649 

37 


Jd 

3410 

-17 

3*30 

34m 

233 

5 

Sag 

3*18 

-40 

3430 

3375 

18.481 

3.100 

Mbs 

3353 

-75 

3405 

3310 

8.61* 151* 

Jaa 

3336 

-75 

3390 

3330 

9330 

9*0 

Mar 

3318 

-74 

3370 

3315 

1053 

291 

May 

3310 

-78 

- 

■ 

904 

- 


Sea 48375 +0.425 46*50 «5W Q 6180 2, 

Oct C325 +0350 4ZJOO 42200 12.123 Z 

0« 4) 725 +0350 *1.775 41.400 6156 I 

Feb *0935 +0500 *1050 *0.450 1J48 

Apr 39.950 *0350 40.050 39700 870 

Jun 44.300 +0500 44.600 44.400 

MI 26233 8J 

■ PORK BELLIES CM6 (40 JOOttW Centered 

*08 26025 +0.400 26750 37.750 1872 2J 

Ptb 4a 900 +1525 44000 42J50 4962 1, 

Mv 41725 +1 225 *1900 42.100 261 

My *4300 +13)0 « 300 *1550 « 

Jtd 46500 +IJ00 45500 44JQ0 90 

An 46400 +1900 46400 


Tetd <1,220 6002 

■ COFFEE •C CSCE (37 JOOfcs; cenrefos) 


LONDON TRADED OPTIONS 

straw price $ tonne — CwBe— — Pitts—- 


■ ALUMINUM 
(99.7%) LME 


Dec Sep Dec 


ENERGY 

■ CRUDE OB. NYMEX (*$OGfl USgaC*- S/barrel) 


■ 2PIC, epecfalhlflh grade g per tonne) 


Close 942-43 

Previous 938.5-384 

WgtVlow 943 

AM Official 942J-465 

Kerb close 

Open kit. 104.703 

Totd dally turnover 14.689 
■ COPPER, grade A (S par tame) 


984-85 

960- 62 
S69M4 
964.5-85 

961- 2 


Latest Oar's 
price bangs Mgb 
Sep 2OJO0 +$3* 30.17 

Oct 1065 +$28 1675 

Hot 1938 +624 1646 

Old 1930 +023 1927 

Jv 19.07 +0.19 1610 

Fte 1838 +023 1538 

Tetd 


Low tat 

1601 96384 
1641 53325 
1619 30.137 
1619 *6662 
1933 21.131 
1832 11,980 


■ SOYABEANS QJT ftOQflbu mkc canWSm taartafi 

Aeg 688.-6 +4.0 591/2 506/4 14,018 10353 

Sap 5753 +276 578,7 57315 14320 4JS6 

Sov 5656 +1/6 56BH S63M 09,491 26402 

Jaa 5754 +1/2 STEM 571* 10311 1.113 

Mr 581,0 -1.0 504/4 500-4 3329 390 

Hay 5 SUZ -04 *31 III 5B?ra 3338 617 

Total 123329 47330 

■ SOYABEAN POL CST (80300fes: centa/lb? 


20175 

+4X35 204.00 19150 

11674 1563 


....... 66 

106 

21 


20000 

-025 207/10 20Om 

11461 

1.862 


_™ 53 

83 

30 

51 

20925 

-125 209.75 20130 

5.14* 

20* 


40 

00 

42 

62 

210-75 

2112S 

213J5 

-155 211.00 207 JO 
•175 211X00 210.00 
-100 21A00 21440 

1.78* 

337 

43 

75 

* 

12 

■ COPPER 
(Grade A) LME 
3400 

Sep 

00 

Dec 

121 

Sep 

42 

Dec 

89 


■ CRUDE OK. 1PE (S/barrel) 


24 C4 -007 2*21 2400 7304 7J12 

2403 +0.D5 2420 2330 22.442 6370 

23.70 -608 2330 2337 14376 2.081 

2349 +013 2362 2338 36096 0367 

2349 -014 2358 2335 4302 50« 


Sap 21375 -300 21400 Z14C 
Tetd 

■ GOFFS (TOP) (US ceres/pound) 
Jd 20 Wee 

Comp, defy <8339 

15 day average 19734 


2450 


B7 84 114 


Close 2438-39 

Previous 2409-10 

HtfVtow 2428/2425 

AM Official 2438-38 

Kerb dose 

Open ire. 241384 

Totd dally turnover £0356 
■ LME AM OfficW £/$ rate: 1.8271 
LME Closing £/$ rate: 1-5386 


2442- 43 
2418-17 

2452/2415 

2440-42 

2443- 4 



Labe! 

Da/t 


Opan 


Mar 

23.47 

•0.13 

2345 

2345 

*440 

5*5 


price 

ebanga 

High 

Low tat 

Vd 

Total 





91192 24671 

Sep 

1151 

+4L33 

1045 

1125 71Z7S 23 05* 

■ SOYABEAN MEAL CST (100 tons: S/ton) 


Oct 

1122 

+OJO 

1127 

1103 34.438 

9492 

Aeg 

I77J 

. 

1704 

177.0 

1*497 

10.405 

Ko> 

110* 

*1X20 

1112 

1740 1U3B 

1.110 

Sap 

1717 

■0.1 

1713 

1715 

17.440 

7.209 

Die 

17.80 

+0.11 

1745 

1745 16J31 

FI 

Oct 

176.6 

•04 

1775 

1754 

10,318 

1604 

Jaa 

1741 

+0.15 

1745 

17.78 1093 

370 

Oac 

1714 

•04 

177.4 

1712 29487 

1235 

Fab 

17.70 

+0.13 

T7JD 

1749 19*0 

262 

Jm 

171* 

-a* 

1710 

1714 

3,781 

216 

Total 




191114 34490 

Ita 

1774 

•04 

1796 

177.7 

*.105 

282 

■ HEATING CHL NYMEX (*1000 US C.US gab.) 

Total 





84640 20,130 


Latest 

Owf* 


Open 


■ POTATOES LCE (£/tonne) 





Oct 1176 -037 

Jdt 1132 - - 

Iter 1135 

Ibid 

■ WHITE SUGAR LCE (S/tonne) 



2500 

42 

77 

83 

142 

Pre*. tfay 

■ COFFEE LCE 

Sep 

Nov 

Sep 

Nov 

18195 

3600 

140 

323 

322 

570 

19678 

3650 

125 

309 

367 

606 

CE (cents/lba) 

3700 — 

112 

296 

394 

643 


■ COCOA LCE 

Sep 

Dec 

Sep 

Dee 


1000 

126 

164 

2 

30 


1050 

62 

131 

8 

47 

1400 

1100. ... ...... 

62 

102 

23 

66 




SpoCI 3420 3 idhsl 5394 8 im)al5376 9 mthsl 53*5 
■ HIGH GRADE COPPER (COMEX) 



Ctoae 

oajre 

Mflh 

taw 

Open 

tat 

Yd 

Aeg 

11140 

+U0 

111.20 

11050 

706 

137 

top 

111.40 

+1.10 

111.70 

11070 29477 

6.419 

Oct 

11145 

+1.10 

111.10 

11140 

438 

19 

■a* 

11145 

+145 

• 

- 

322 

112 

Dec 

11085 

+145 

11040 

11020 

10913 

502 

Jan 

11050 

+1.00 

- 

. 

3*1 

H 

Total 





41059 

7,740 


price daege «gh 

Aug 51.70 +131 5200 

Sep S230 +033 5230 

Oct 5310 +0.73 5330 

Nov 53.83 +0.83 5430 

OK 5430 +0.83 5530 

Jan 5550 +833 5555 

Tetd 

■ GAS OIL PE (SAme) 


lew tat 

5150 32.510 

gm 1433a 

5335 10.946 
5430 22374 
5550 13.415 

128384 


mov isao 

Her 10U 

Apr 2145 -65 217.0 2160 1.451 151 

May 2353 -60 

Jen 1075 

Total 1301 181 

■ FREIGHT (BIFFBQ LCE (SlCVIndex point) 


Oct 

31420 

-100 31520 31150 

11,013 

37* 

Dec 

31150 

-150 31450 31110 

1496 

12 

Bar 

31150 

-1.20 31350 

311.80 

4238 

197 

May 

31150 

-150 

- 

- 

388 

- 

teg 

31120 

-150 

- 

- 

384 

• 

Oct 

291*0 

•150 

• 

- 

182 

- 

total 





17,279 

90S 

■ SUGAR rtf CSCE (lllOOOtosioenteribe) 


Oct 

11.60 

-0.14 

11.78 

1160 65400 $770 

Iter 

1147 

-012 

11.77 

1140 

31.410 2510 

toy 

1158 

-009 

1172 

11.60 

$551 

268 

Jd 

11.58 

-Oil 

11.64 

1158 

2545 

73 

Oct 

11.40 

-004 

11.40 

11.41 

1.198 

62 

Itar 

1135 

-OIO 

11.40 

1150 

107 

* 


■ BRENT CRUDE 1PE Sep 

1700 - 

1750 - 

1800 75 


Oct Sep Oct 
2 26 
8 38 

82 22 57 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (par bamVSep) -or 


Dubd 518.94-7.12vi +0.220 

Brent Blend (dated) $1647-8.51 +0530 

Brant Blend (Sep) $1659663 +0.500 

W.T.I. Cl pm aeq $20-29-230* +0.570 

■ OS. PROOUCTS NWEpresept Osftray OF Jemal 


106078 11 383 


■ COTTON NYCE (50.000B5S; cantsAbe) 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Pricaa Bonded by N M Rothechad) 

Gold (Tray re) $ price 

Close 383.70-384.10 

Opentag 384.10-384.50 

Morning fix 384.05 

Afternoon fix 384.00 

Day’s ligh 384.90-30530 

Day’s Low 38250-383.00 

Previous dose 387.10-30750 

Loco Lcfti Mean Gold LanArg Rates (Vs USS) 

1 ntorn/i 3.99 6 months — ,-435 

2 months 4.08 12 months A98 

3 months „..4 32 

S8ver Fix p/troy re 

Spot 3*830 

3 months 35130 

8 months 36630 

1 ysre 38675 

GoM Coins $ price 

Krugerrand 382-398 

Maple Leaf 394.00-396J0 

New Sovereign 91-94 


Sad Safe Ojao 

price ebaogs ugb Low tnt Vd 
Aeg 100.75 -335 16075 15600 23.454 6J23 

Sap 15150 +3.75 163.75 100.75 21324 4J69 

Oct 16600 +32$ 16600 16490 15,150 1320 

Nov 167.75 +335 167.75 16575 10,523 601 

Dec 10950 +335 16930 16730 1S.044 660 

Jm 17035 +2.75 17035 16650 S312 360 

Total 183,190 14300 

■ NATURAL GAS NYMBt (iqOOO nwi8tU4 IjtaBgU 
Latast Day's Open 


1*39 

-2 



512 


Oct 

7150 

-150 

7340 

7150 

1818 027 

1419 

+23 

1413 

1390 

843 

12fl 

Dac 

7095 

•1.68 

7140 

7063 21562 4.740 

1*06 

*11 

1410 

1390 

347 

67 

Mar 

7120 

-143 

7140 

7105 

7530 1A13 

1*25 

+7 

1425 

1415 

594 

25 

May 

7190 

-150 

7445 

7170 

4225 90 

1430 

+2 

1430 

1430 

261 

13 

Jat 

7357 

-156 

7170 

7350 

1478 0 

1*62 

*4 



102 

1748 

231 

oet 

Total 

TO 85 

-070 

71.10 

71.00 

346 11 

80779 1906 


Prana urn Gosofine 
GesOB 
Heavy Fust OH 
Nopiuha 
Jet hrel 

Pfb&man Apua EriSnam 
■ OTHER 


$201-203 +2 

$180-181 +4 


*187-172 +25 

$173-175 +4 


■ ORANGE JUICE NYCE |16000Bk; cantattd) 


Oft 1440 1440 


$ price 
383.70-384.10 
304.10-384.50 
384.05 
364.00 

384.90-38550 

36150-383.00 

£ «*sv. 


price 

draga 

Mgh 

low 

tat 

Vd 

Sep 

1453 

-1008 

1485 

1451 

£6.191 

1838 


Oct 

1435 

-0.004 

1445 

1535 

13.08* 

1569 

251506 

249.626 

Nov 

2470 

-0402 

2475 

2455 

10409 

6*3 

Dec 

1205 

-0409 

1220 


1*557 

802 

Jaa 

t-m 

•0.005 

2240 

122 

10.061 

701 


Fab 

1145 

•0406 

1150 

1145 

$397 

1,102 

387.10-38750 


Total 




1135M 

$534 


Sep 

9115 

+180 89.00 9110 14438 

317 

Nov 

101.40 

•185 10140 99.10 

3203 

150 

Jaa 

10425 

•245 105.00 10175 

3.755 

78 

Mar 

107.75 

+100 10740 10145 

1403 

130 

May 

1102S 

+150 10975 10940 

746 

21 

Jd 

11145 

•04S 11100 11150 

186 

34 

Total 



2*527 

845 


■ UNLEADED OASOUIC 


p/troy re 
3*830 
35130 
35830 
38675 
$ price 
392-395 
384.00-39630 
91-94 


US eta eoJv, 
52935 
535.05 
542.10 
558.75 
£ eqdv. 
266-259 



letota 

Den 



Opan 



Price 

ebanga 

HgO 

low 

tat 

Vd 

Aeg 

5840 

+1*9 

5150 

5740 

11322 

14463 

Sep 

57.70 

+15* 

58.00 

5725 *1167 11419 

Oct 

55.60 

+0.47 

5175 

55.10 

10437 

3,387 

Nov 

5355 

+027 

5170 

53.45 

$384 

883 

Ore 

5140 

+127 

5820 

51*0 

5478 

358 

Jen 

totd 

5720 

+147 

* 

” 

$40* 31 

8*407 38488 


Splcee 

Prices of afl grades of pepper rase conddera- 
bty this weeh. reports Man Praducttat- bidane- 
dsn shippers were most rakjctant to offer any 
wnea pepper baiatie of ifaapprtnttng and 
delayed arrivals of new crop and this helped to 
push pnees up by USS250 to 5300 a tonne. 
Spot white was on offer 31 $3300 and prompt 
shipment at S3.156 e and f. Btadc popper 
prices ware also firmer sorocs the board. Ris- 
ing demand coupled with Imlted suppffiM from 
most origins pushed prices to new Nghs. Black 
pepper at (dr aueraoe quality tor spot deftvoy 
reached about $1,850 a tonne and batter 
grades wore haded at about $2,000. In the US 
metal the spot price exceeded 90 cents a 
pound. 


VOLUME DATA 

Open merest and VOliarw dare show n far 
contracts traded on COMEX NYMEX. CST, 
NYCE. CME. CSCE and IPE Crude Ofl era one 
day In arrears. 


INDICES 

■ RBITBH8 (Bern: 18/9/31«100) 

Jui 29 Jd 28 month ego year ago 
2115.1 2122.3 2074.1 1049.1 

■ CRB FUturae (Base: 4/a/S8°100| 

Jd 28 Jd 27 month ago year ago 
23230 232-58 23039 2T&90 


Gold (par tray cdf 
SHver (per trey <u)t 
Platinum (par tray re) 
PnBnd um (par troy re) 
Copper (US prod.) 

Load (US prod.) 

Tta (Kuala Lump**) 

Tin (New York) 

Cattle (Hva welghQTO 
Sheep (Bve weight ) T^O 
Pigs <»vb wdgtXjC 
Lon. d»y sugar (raw) 

Lon. day sugar (wtn) 
Tata & Lyle export 
Barley (Eng. lead) 

Mdse (US No3 Yellow) 
Wheat (US Dark North) 
Ftotoer (Sep)V 
Rubber (OcQV 
Rubber KLRSSNOl Am 
CDcond Off (PMtS 
Rabn OH (MdayJS 

Copra (Phl)§ 

Soyabeans (US) 

Cotton Outlook 'A* Index 
Woottops (84a Super) 


=*=1, -• . -~j , ^ i taeta ^ fi 

u 

JtWCE CROSS 


Cpw tome wiaas afflwwlea stated, p panosAg. o rertafib. - 
r rtnotSUtaj. m MWayakn oanta/ho. tO«/Oao.q Aub-x fear 1 
Sap. -m «ap . V undm nywtsL i Cff MBaraen. f -, 
Bdilan merest dose. 4 Cheap (U*» waltfit prlceaL * 
Ownga on weak. O Mcea we tor pnvtaua day- 


US INTEREST RATES 


LONG GILT FUTURES OPTIONS (UFFQ £50300 64tfu of 100S 


ImchUme Treasury B9a and Bond YlakB 

ft» noon . 420 Taw yaar — 

Pitre ibb 7t» Too bomp 4*48 Hare yew. 

8mkar loan ran — 5>2 Tires north- 4.38 Rw yaar 

Feahitu Shmonft 405 KHrer 

Padharia a Wa v a taxi- - Ore year. 53* SIHev 


548 

Strike 

Price 

Sep 

■ CALLS 

Dec 

Sep 

. PUTS 

Dec 

627 

101 

1-56 

2-58 

1-18 

2-S8 

6JB 

7.14 

7A5 

102 

1-22 

2-29 

1-48 

3-29 

103 

0-50 

2-03 

2-18 

4-03 


■ US TREASURY BOND FUTURES (CST) $100300 Sgntta of 10096 

Open Latast Change Wflh Low Eat vol Open W. 
Sep 102-30 103-25 +0-25 104-00 102-27 370,134 386940 


EsL vol tom Cds Mae An «flia Prarioua nay's open mt, Cels 75697 Am 57307 


102-30 103-25 +0-25 104-00 102-27 370.134 386940 

102-05 103-01 +0-25 1034)7 102-03 6784 82385 

102-06 102-00 +041 102-00 10208 112 4368 


BOND FUTURES AND OPTIONS 


Franca 

■ NOTIONAL FHBICH BOND FUTURES (MAT1F) 

Open Sea price Change High Low Eat voL Open Irrt. 
Sep 11036 117.02 +0.18 117.48 11030 126706 117310 


Dec 116.04 11618 +0.18 11638 11604 1,787 14340 

Mar 115.34 11643 +618 115.80 11534 178 2381 

■ LONG TERM FRSJCtt BOND OPTIONS (MAT1F) 


Ecu 

■ ECU BO HD FUTURES (MATTF) 

Open Sett pries Change 
Sap 84.48 8434 +0.16 

Dec - 8430 +0-10 


Est vol Open Ire. 
882 7.806 


Japan 

■ NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 

(UFFE) VI 00m tooths of 100% 

Open Qoaa Change Mgh Low Eat vol Opan M. 
Sep 10600 109.15 10697 1816 0 

Dec 10619 10838 10611 203 0 

- UFFE wmr act a Mead on APT. AM Open Marat figs, ora tor prarteua day. 




StrOie 

•— 

CALLS 

— 

IM. 

— pure — 

. 

FT- ACTUARIES FIXED INTEREST INDICES 








Price 

Sep 

Dec 

Mar 

Sep 

Dec 

Mer 


Frt 

Gay 1 * 

Thur 

Accrued 

xd a# 


Frt 

Day’s 

tor 

Accrued 

xd ac(| 

116 

140 

$82 

3.00 

043 

1.70 

135 

UK Q/tts Price Iratcra 

Jd 29 

change % 

Jd 28 

Merest 

yield 

Indax-Onfcad 

Jd 29 

change % 


Interest 

yted 

118 

1.73 

127 

- 

0.78 

2.08 


1 Up to 5 years (2*) 

12143 

-113 

12048 

140 

041 

6 Up to 5 yera*{3 

18588 

-043 

18149 

148 

243 

117 

1.14 

1.BO 

- 

1.10 

240 

- 

2 5-15 yeare (22) 

13942 

+119 

13120 

1.71 

745 

7 Over 5 yean (11) 

186.77 

-044 

17136 

$80 

126 

118 

11a 

0.67 

DM 

1.19 

186 

1.50 

141 

- 

- 

3 Over 15 yeffriffl) 

* taedeerafetae (8) 

15112 

17043 

+173 

-140 

154.99 

1774* 

1.44 

145 

an 

746 

8 Al bucks (13) 

17058 

-034 

171.14 

$70 

$18 

Est vd. Core. Cate 30,728 

Pure 37.40* . 

Prevraa dsn open hx, calls 363.01 s nm 333.421. 

6 AD stocks (01) 

Yields Jd 29 

13746 +110 

Low coupon ytaid — 

Jd 25 Yr ago Mgh 

13183 

Low 

144 

Jd 29 

747 9 Deba and loans (75) 

M 28 Yr ago rfgh 

12167 

Low" 

+177 

Ju>29 Jd 29 

12647 

TtS?* 00 , 

341 

tiff — 

847 

Lm 


* rates 


Germany 

■ NOTIONAL GERMAN BUND FUTURES ftJFFQ* DM250,000 lOOths of 10094 


Open Sett price Change ffigh Low Est vol Open tat. 
93.13 93.66 +0.81 93.75 9238 121433 160243 

92.45 9600 +031 02.75 02.44 1153 15210 


5 yrs 838 833 682 834 (21 /B) 537 (1971 

15 yra 652 831 732 8.79 (1/ffl 630 CO/i 

20 yre 648 647 7.77 675 (1/6) 6.41 CO/I 

lrrad-t 661 833 732 686 (1/ffl 632 04/1' 

b aJ ex-flnhed — Inflation rate 5% — — — Inflation rate 1096 - 

Up to S yrs 4.03 686 2-75 69* (1/0 2.13 (4/1) 2.97 2.79 1.97 235 (1«9 1.1$ (1 a® 

over S yre 338 694 638 699 (21/81 2.88 00/1) 678 3.75 620 679 (21 /B) 2.70 (20/1) 

DetaeAleana 5 yeas ISyeara 25 

939 934 636 10.00 (21/8) 7.19 (10/1) 931 939 668 9.90 p/6) 739 part) 0.44 933 a. 62 

Average groea redemptton yields are shown above. Coupon Banda: Low: 09fc-74|96; MecSurr: 894-101*%: High: 11% and over, f Rat ytaid. ytd Year 


831 831 678 670(1/8) 682 

830 684 7.73 832 (IAS 638 

659 834 7.82 692 (1/8) 642 


682 (10/1) 661 830 
838 (KYI) 836 689 


661 830 837 

835 689 7.87 

8.71 674 7.89 


681 (20/B) 
624 (1/BJ 
8.06 P/B) 


5.81 nflrti 

663 KYI) 
635 2Qrt 


i.i9 (i8/a 
2.70 part) 


BUND FUTURES OPTIONS (UFFE) DM250300 pdma of 100% 


834 (1/Q 
to data. 


7.48 port) 


Strike 

Woe 

SOP 

Oct 

CALLS — 
Nov 

Dec 

Sep 

Oct 

pure — 
Nov 

Dec 

8350 

0.77 

040 

1.08 

124 

0.62 

120 

1.58 

1.74 . 

9400 

041 

040 

0.B7 

1.01 

046 

1.00 

1.87 

101 

9450 

0.31 

0.42 

046 

$01 

1.16 

142 

118 

221 


FT FIXED INTEREST INDICES GILT EDGED ACTIVITY INDICES 

July 29 July 26 Jdy 27 July 26 JUy 25 Yr ago High* LOW Jiiy28 July 27 Jdy 28 Juy 26 Jdy 25 

Govt Sacs. (UK) 91.75 82.06 9228 9322 93.17 98.17 107.04 9039 Gfft Edged bargalne 932 1073 732 893 003 

Fbed Interest 11027 11026 11131 11137 11134 11673 133.87 10733 6-day average 808 95.1 1060 111.1 1163 

' tar im O rewwreni Sacwirea Wgh awes eempiaiwK 1Z7A0 pri/SS. km 43.10 (V1/7SI. Rred ruenra Mgh anew careaaOarr 13337 pi/T/94) . tow 50.33 (3/trtR . Bala 100» Q wa w an — SwaaBaa linn/ 
20 and Rasd Haw 'VSB. SE aenvoy hidca next sad 1S7* 


Eat. VOL total, Catt 8388 tare 11 707. Prevtoua aav"* op*> W. Crib 385001 Puts C8S90B 


UK GILTS PRICES 


■ NOTIONAL MEDIUM TERM GERMAN GOVT. BOND 

(BOBUOJFFE)- DM250,000 IQOtha of 100% 

Open Sett price Change High Low 

Sep 9632 +031 

Italy 

■ NOTIONAL ITALIAN GOVT. BOND (DTP) FUTURES 

tUFFE)* Ura 200m lOOths ol 100% 

Open Sett price Change High Low 

Sep 101.40 101.33 +033 101.32 100.78 

100.08 +633 


-flrttf-. 

K Rad PfKa£+w- 


1994 ~ 

NUi Low 


Ylatd 

Irrt Had PttaiE • 


— . 1984 _ 
or- tvgh taw 


Eta, vol Open lift. 
0 78 


Starti" (Urea ep Is Rre Yaan) 

Exdil2l2PCl004 11*2 

Trass 9pc !994tf .... 8.92 


12PC199S 11.68 


Ere vd Open lot 
42412 85487 

0 191 


■ ITALIAN GOVT. BOND (BTP) FUTURES OPTIONS (UFFE) Ura200m lOOthf of 100% 



Strike 

Price 

Sop 

. CALLS 

Dac 

Sop 

- pure 

Dac 

10100 

1.84 

$46 

121 

328 

10160 

127 

2-25 

1.34 

$67 

10200 

1.12 

2.05 

1.79 

$97 


Eta. id. total. QWs 101 Puts 410. Amtaua dd/a opan re. Caffa 36806 Pula 33Q2S 


Ena 3 ocEbs BO-95 i05 

10'ipc 1995 189 

Traa I24ipe 19SS# — It 87 

Mpc 1996 12K 

TSVpc199Sn. 1190 

601 13»ape 1996# 1237 

Qraenhai IQpe 19G6 654 

Traa* Cm Tpc 19P7#. 7.1 1 

Trail 31»pe 1B97p 1132 

£salO>3PCl997 MB 

Traa Wr pc 1997# L5B 

Bs*15pe1W7 1258 

W«pei998, 832 

Trees ri, pc 1996# 7.48 

Trvaa Bit pc 1995-98# _ 728 

Hpc-98-1 1128 

Traasi Stare -98# its 

EnhlZpelSBS 1005 

Tiaai Stare »«# ai3 


4.91 lootata 
576 lOO^i 
079 102B 
S22 SW 
636 163(4 
8.08 107,’* 

828 1(»n 

723 M3 
728 109(2 
763 104^ 
755 98tata 
7.74 llSta 
7,82 lOBtata 
UB 102/>d 
MO 118A 
820 1044! 
117 87* 

MO 854) 
143 1171$ 
824 ISA 
1*1 1i2fi 
140 10*A 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MB=F) 
Open Sett price Change Hltfi 
Sep 90.07 90.86 +680 90.70 

Dec 88.93 


Eat vol- Open Ira. 
33.436 106.747 

30 010 


■ NOTIONAL UK GILT FUTURES (UFF6)' £50000 32nda OMQQ* 

Open Soft price Change High Low Est vd Open Int. 
Sep 101-12 101-20 +0-18 101-20 86-28 88788 118345 


ftra teRltaenVaere 




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149 87* 

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198 121(4 

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199 1284! 
955 103]! 


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reflect ratastig of RPI ta 100 in January 1907. Cormra#tector 


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financial times 


WEEKEND JULY 30/JULY 31 1994 


13 


CURRENCIES AND MONEY 


MARKETS REPORT 


Futures plunge 


Dollar 


Sterling. 


French franc 


Fears of an rise in 

UK base rates caused panic 
selling of short sterling futures 
yesterday, writes Philip 
Gawith. 

Massive volumes were traded 
and price movements were »iv> 
exceptionally large. The 
December contract traded 
nearly 110,000 lots and there 
was a 48 basis point spread 
between the high and the low 
prices for the day. 

The December contract set- 
tled at 93.27. suggesting the 
market believes interest rates 
will rise by 1.5 percentage 
points by the end of the year. 

These developments over- 
shadowed the release of the US 
2nd quarter GDP figure, which 
rose by 3.7 per cent. This was 
below market expectations and 
this took some of the sheen off 
the dollar which had risen 
above YI00 on Thursday even- 
ing for the first time in a 
month. 

The dollar finished in Lon- 
don at Y 100.1 75. down from a 


high for the day of Y100.57 . 
Against the D-Mark it finished 
at DM1.588S. off a high of 
DM1.5985 before the GDP 
release. 

The prospect of higher inter- 
est rates bolstered sterling 
which rose more than two 
pfennigs on the day to finish in 
London at DM2.4413 from 
DM2.4195. It was also ’A cent 
firmer against the dollar, clos- 
ing at $1.5366 from $1.5319. 


■ Pound hi Mm York 



1.54 


1.52 


to 29 

Cqn* 1.5405 

I rnth 1.5391 

3 raffl f .5362 

if 14245 


V. dOM- 

i sm 

1 4263 
14251 
14186 


■ The market's problems 
arose from confusing interest 
rate signals emanating from 
the Bank of England. In its 
weekly Treasury bill 
operations, the Bank accepted 
a highest bid of 5.7558 per cent 
- V* per cent above the current 
base rate, and around % of a 


July 1084 
. Source; FT Graphite 

percentage point up on the 
week. 

This led the market to 
believe that the Bank of 
England was si gnalling an 
imminent tightening of policy. 

In Its daily operations, how- 
ever, the Bank provided assis- 
tance at the established rate of 
5& per cent This left the mar- 
ket totally confused as to what 
the Bank was trying to tell it 

The net effect of yesterday’s 
transactions is that the Bank 
has borrowed money at 5.75 
per cent and lent ft at 5& per 
cent. This is an imtonahip situ- 


umyiSM 


July 1994 


July 1094 


POUND SPOT FORWARD AGAlfiST THE POUND 


Day's mm 
Nghtow 


ation beyond the very short 
term, and either market rates 
will have to drop back towards 
the Bank rate, or it will have 
to be raised. 

Analysts were split as to 
whether the Bank was trying 
to signal higher rates, or had 
made a mess of the Treasury 
bill tender by not realising the 
confusion it would create by 
accepting a 5.75 per cent rate. 

Although interbank rates 
had climbed sharply during the 
days following the CBI survey, 
and a buoyant purchasing 
managers index yesterday, the 


DOLLAR SPOT FO 


Bank’s hands were not tied. It 
could either have pulled the 
auction, as it has done in the 
past, or intervened on its own 
account to knock out the high- 
est bids. 

Traders in the fixtures mar- 
ket said the market went 
“absolutely ballistic". Trading 
conditions were “right up there 
with the ERM chaos" said one 
dealer. 

Sterling rose on hopes of 
higher rates, but analysts 
warned that it was vulnerable 
to a heavy sell-off next week 
should the Rank disappoint the 


July 1994 


market by not tightening pol- 
icy. 

Not only would rates be 
lower than expected, but the 
Bank's credibility would be 
damaged. Similar confusion in 
February about the handling of 
a base rate rise led to heavy 
selling of sterling. 


jus t $ 

Know 154739 - 156464 102430 - 102.130 
tan 2674.00 - 287740 174840 - 175040 

Kwast 04578 • 0459B 02980 - 0298S 
Wand 350024 - 35095.1 227854 - 228354 
tesla 316345 • 317000 20HSOO - 208340 
UAE 54846 - 58779 34718 - 34735 


Jul 29 

Closing 

mki-poini 

Cnango 
on day 

BWtoffler 

apreed 

Guropa 

Austria 

(Sch) 

17.1687 

+0.1445 

809 - 764 

Balgkan 

(BFr) 

502452 

+0.488 

030 - 674 

Denmark 

(DKt) 

0L5056 

+0.0679 

022 - 996 

Rrtend 

(FM 

a.0358 

+0.063 

260 - 444 

Franco 

(FFr) 

8.3408 

+0.0803 

382 - 454 

Germany 

(DM) 

2-4413 

+0.021 B 

403 - 423 

Greece 

(Dr) 

388288 

+2.582 

920 - 656 

Ireland 

OQ 

1.0144 

+0.0024 

138 - 161 

Italy 

« 

0442.70 

♦11.88 

166 - 384 

Luxembourg 

(LFr) 

602462 

+0483 

030 • 874 

Nednrtands 

(FO 

2. 7378 

+0.0223 

364 - 382 

til i iiaiite i 

Norway 

(NKr) 

ias460 

+a0952 

<20 - 498 

Portugal 

(Ea) 

248.078 

+0-836 

943 - 209 

Spain 

(PW 

200568 

+1202 

397 - no 

Sweden 

(SKr) 

112264 

+02605 

209 • 379 

Switzerland 

(SFr) 

2.0675 

+021 94 

682 - 687 

UK 

53 

- 

- 

- 

Ecu 


12749 

+0.0094 

743 - 754 

SORT 

- 

02*9280 

_ 

. 

Amerlcaa 

AcganOra 

(Peso) 

14347 

+0.0049 

342-351 

Brazil 

W 

1.4469 

+0.0058 

440 - 478 


'HE DOLLAR : 


Ona monSi Three months One year Bank d 
Rata %PA Raw WPA Rale %PA Eng. Index 


Jtd2B 


Closing 

mid-point 


Change BkVoder 
on day 


Day's mU 
high tow 


One month Three months One year JJ» Morgan 
Rale KPA Ran 96PA Rate MPA index 


17.2588 174210 17.1843 04 17.1525 0.4 

502890 494840 602562 -02 502702 -02 409702 05 

0.6081 9.5371 9.6028 -0.8 0418 -04 9.6820 -07 

00630 74870 - - - 

03462 02783 8442 -02 04402 00 02958 04 

2.4444 2. 4258 2.4407 04 2.438? 04 2.4001 14 

380229 385458 - - - 

14179 1.0129 
2445.74 242018 


Europe 


Canada (CS) 2.1238 404086 227 - 245 

02250 40019 215 - 285 

14366 400047 362 - 366 


Mexico {New Peso) 

USA ffl 

Pedfle/MMdta Eaat/AMca 


1.0148 -05 14157 -04 14182 -05 
24464 -34 246065 -2.9 2509 -2.7 

502800 494840 502552 -02 502702 -02 494702 05 

2.7399 2.7231 2737 04 27341 05 27042 12 

106612 104375 10843 03 106535 -03 106395 0.1 

240497 240636 249406 -04 262988 -74 

200922 199488 201.016 -26 201423 -25 204203 -14 

11.9626 114404 114609 -22 120014 -24 122219 -25 

24706 24573 20857 14 20618 1.1 20307 14 


- 754 14777 14678 14756 -0.7 14784 -04 14782 -Ol 


14400 14229 - - - - 

1.4495 14340 - - - 

2.1318 2.1079 21239 -02 21258 -04 21446 -14 


02359 01663 
14420 15247 


14356 04 1434 0.7 14269 07 


Australia 
Hong Kong 
India 
Japan 
Mrtayrin 


(AS) 20794 -00003 782 - 605 


24793 OO 


24607 -04 24866 -06 

OO 


24903 2.0637 

(HK3) 114706 100989 870 - 738 11.9120 11.7806 114668 04 114665 02 114726 

(Rb) 464016 +01494 668 - 164 484860 47.6340 - - - 

+024 650 - 987 154.000 152400 153414 35 152459 34 148464 34 

09966 34574 - - - 

24836 24357 


(YJ 163424 
(MS) 34859 


+0013 634 - 683 


New Zeeland (NZS) 24535 +00019 518 - 551 

(Paso) 403345 +0.1233 180 - 510 406150 38.8126 

07828 5.7187 
24297 24061 
06607 5.5679 
7.1555 64867 


PhHppInea 

Saudi Arabia (SR) 

fam ura m (SSI 

S Africa (Com.) ro 
S Africa (Fm.) (FQ 

South Korea (Won) 123348 
Taiwan 
Ttmand 


2.5574 -14 25852 -14 24875 -14 


5.7628 +04177 611 - 645 

23220 +00097 207 - 233 

54507 +00069 471 - 543 

7.1373 +0.1337 203 • 543 

+441 295 - 382 123741 1224.03 
(TS) 408481 +0.1858 337-565 409679 404206 
(BO 304999 +01942 357 - 640 306650 301710 


114.4 

Austria 

<Sch| 

11.1735 

+0jQ8 

1163 

Belgium 

(BFr) 

32.7000 

+0215 

118A 

DanmerK 

(OKr) 

62451 

+0.0382 

02-4 

FMand 

m 

52294 

+0.0251 

1092 

France 

(FFr) 

5-4263 

+0.0368 

125.4 

Germany 

(D) 

12888 

+&D093 

— 

Greece 

w 

238.750 

+025 

1D4£ 

Ireland 

(»CJ 

15146 

+0.0011 

76.7 

Italy 

(U 

1580.73 

+268 

1163 

Luxamboug 

fl-Fir) 

32.7000 

+0216 

1202 

Nathadande 

n 

1.7618 

*410091 

58.4 

Norway 

(W<D 

62285 

+02409 

— 

Portugoi 

(&) 

161-460 

+005 

863 

Spate 

Pta) 

13022S 

+0.45 

742 

Sweden 

(SKi) 

7.7838 

+OLOOB2 

119-9 

ftetaratend 

(SFr) 

12455 

+Q.D085 

79.4 

UK 

B 

1^368 

+0.0047 

— 

Ecu 


12053 

-a 0053 

- 

SORT 

- 

1/46591 

- 


Amerlew 




- 

Aigenttea 

(Peso) 

09888 

+0.0001 

- 

BrezS 

PO 

09410 

*0.001 

86.1 

Canada 

(CS) 

12821 

+02014 

- 

Mexico (New Peso] 

3.4006 

+0.002 

866 

USA 

m 

. 

. 


PtoMcAUddte Eaatf Africa 


— 

Austria 

(AS) 

12533 

-0.0043 

- 

Hong Kong 

(HK5) 

7.7254 

*0.0004 

- 

IndB 

(Rs) 

312700 

+02012 

169-4 

Japan 

PO 

100176 

+1.165 

- 

Mateyela 

(MS) 

25840 

+02005 

_ 

New Zealand 

(NZ3) 

1.5618 

-0.0038 

- 

Phg^jpinaa 

(Peso) 

282600 

- 

- 

Saudi Arabia 

(SRJ 

3.7506 

+02001 

- 

Singapore 

(SS) 

13112 

+0.0017 

- 

S Africa (Com.) 

w 

32775 

-02068 

- 

S AMca (Fin.) 

ffO 

4.5450 

+0.073 

- 

South Korea 

(Won) 

802.700 

+0.35 

- 

Tolwai 

CTS) 

28^830 

+02397 


760 114375 11.1025 
200 324800 324700 
02683 02202 
54577 52100 
5.4540 54055 
14991 14820 
000 241.100 230400 
166 14163 14010 

011 160040 1583.75 

200 328800 324700 
823 1.7930 1.7750 

59650 64963 
600 162400 160450 
800 131250 130200 
7.8145 7.7347 
14543 1.3400 
1.6420 14247 
14085 1.1979 


461 

342 

300 

891 


i-295 


676 

460 

3B9 

055 


420 


Thailand 


tSDR rwo tar 44 9*. BUMar operate ta «w Pram Spot wole dm arty «» tera three wm ptram. tawed ram n not dkeaw reams « to nratat 
but are knptel Dy onam knmra raw. SMng Indra eracukrad by Hie Bank olEngted. Bbm awr^e law a 10O6M. Oear wit PkW+ran M Mh nw raid 
ttw Date Dora tebtas drained ton THE WWBEUIBtS CLD8MQ SPOT RATES, soma reftrae wa mated by IIm F.T. 


(81) 254300 


- 600 - 500 
507 
117 
790 
550 
BOO 
850 

+045 200-400 


04986 04683 
0.9420 04395 
14847 1.3815 
3.4020 34970 


14563 14521 
7.7261 7.7248 
314775 314675 
100460 99.6500 
24951 24930 
14853 14611 
2Bri£00 26.0500 
3.7507 27502 
14140 14107 
27020 26615 
44660 44100 
602400 802400 
264010 264810 


11.1762 

-0.3 

11.1698 

ai 

11.0918 

a7 

104.1 

32.7175 

-02 

32.74 

-02 

32.75 

-0.2 

105.7 

82521 

-12 

62641 

-12 

62928 

-as 

105.1 

52339 

-02 

52374 

-0.6 

5-2744 

-02 ■ 

772 

5-4327 

-1.0 

52378 

-0.7 

5.4195 

02 

1061 

1.5894 

-02 

1.5894 

-02 

1.5788 

ae 

1068 

240.1 

-12 

240.87 

-12 

244.26 

-12 

89.3 

1.6137 

1.0 

12114 

02 

1.5028 

08 

- 

1594.78 

-32 

1604.18 

-32 

1644.73 

-32 

760 

32.7175 

-0.6 

32.74 

-02 

32.76 

-02 

106.7 

1.7824 

-0-4 

1.7813 

ai 

1.7723 

as 

1052 

6.932 

-0.8 

6.939 

-06 

6898 

02 

965 

18228 

-9.1 

164.72 

-6.1 

17125 

-6A 

94.7 

130.91 

-32 

131275 

-32 

133255 

-2.8 

B1.3 

7.7808 

-22 

72133 

-2.6 

72638 

-22 

702 

12451 

0-4 

12441 

64 

1.3308 

1.1 

1062 

12368 

as 

12343 

0.6 

12267 

as 

872 

12036 

1.4 

12019 

1.1 

12128 

-as 

- 

12833 

-1.0 

12857 

-12 

1.4057 

-1.7 

822 

3.4015 

-0.4 

3.4033 

-02 

3.4107 

-02 

- 

- 

- 

- 

■ 

■ 

- 

97.4 

12536 

-02 

12643 

-02 

1.3818 

-0.6 

872 

7.7262 

0.0 

7.7259 

ao 

7.7409 

-02 

- 

31.455 

-32 

31.6 

-22 

- 

. 

- 

901975 

24 

90516 

26 

97.01 

32 

151.1 

2-6840 

42 

2.6735 

32 

2247 

-22 

- 

1.6627 

-0.7 

1.8846 

~a7 

1.6699 

-02 

- 

3,7518 

-0.4 

3.7550 

-02 

3.7746 

-08 

_ 

12099 

1.1 

1.608 

02 

12012 

ar 

- 

3.093 

-6.1 

3.7213 

-42 

3.798 

-32 

_ 

42787 

-8.7 

4.7375 

-6.0 

. 

. 

- 

806.7 

-42 

6092 

-82 

827.7 

-3.1 

- 

26.603 

-0.9 

26243 

-02 

- 

. 

- 

25.1025 

-32 

2523 

-32 

25.71 

-2.7 

- 


190R tea lot to 28. Bdrcrthr spreads kt to Debar Gpot table teaw reSy to Wat terse decani paces. FomI rates are t 
but an fenpaad by curare k it — at ratse. UK, Mand A ECU an quoted In U8 anency. iP. Morgen nrankel Interna ju za B 


i ifcscay quoad io the marten 
.1990-100 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Jut 29 BR-DKrFRrOMK L H NKr Es Pta SXr SFr 


C 3 


Botgbm 


(BFr) 100 19.10 16.00 4458 2018 4861 5.448 21.18 4926 3621 2273 4.114 1490 4426 2057 3064 2438 


Denmark 

(DKi) 

5228 

10 

8292 

2244 

1.057 

2545 

2253 

11.09 

2565 

2092 

12.42 

2.154 

1.042 

2213 

1.601 

1804 

1228 

Netherlands 

21BB72 

2.15480 

+020412 

-1.91 

428 

France 

(FFr) 

6024 

1120 

10 

2.827 

1216 

jXWA 


12.78 

297/4 

2404 

1429 

2.478 

1.190 

2246 

1242 

1842 

1228 

Belgium 

402123 

30.5209 

+0.0841 

-1.72 

4.18 

Germany 

(DM) 

2028 

3231 

3.417 

1 

a415 

1000 

1.121 

4258 

101.8 

82.14 

4283 

0247 

0410 

0870 

0629 

8326 

0522 

Germany 

124864 

122064 

+0.0043 

-1.49 

3.01 

Mand 

WS 

49.55 

8-463 

6225 

2.407 

1 

2408 

2299 

1048 

244.6 

197.7 

11.78 

2,039 

0686 

2284 

1215 

1512 

1256 

Mend 

0208826 

0.798721 

-0.002343 

-1.10 

351 

Italy 

(U 

2257 

0.383 

0242 

aioo 

0.042 

ioa 

a 112 

0.436 

iaie 

6210 

0488 

0085 

0241 

0287 

0263 

6202 

0252 

nance 

653883 

656831 

+000308 

027 

2.10 

Netherlands 

(FI) 

1638 

3206 

3247 

0292 

0270 

8822 

1 

3287 

90.61 

7328 

4255 

0755 

0385 

0776 

0261 

5623 

0405 

Portugal 

192254 

106.051 

-0893 

1.14 

122 

Norway 

(NKr) 

4722 

9.018 

7.838 

2294 

0963 

2295 

2272 

10 

233.1 

1864 

1120 

1243 

0240 

1295 

1.444 

1442 

1.107 

Danmark 

743679 

724162 

+020717 

141 

025 

Portugal 

(Es) 

2020 

8.880 

3263 

0984 

0.409 

984.7 

1.104 

4.290 

ioa 

8025 

4208 

0233 

0403 

nasn 

0219 

6208 

0514 

Spain 

154250 

167.003 

+0.022 

227 

OOO 

Spain 

(Pta) 

25.06 

4.786 

4.1B0 

1217 

0206 

1218 

1265 

6207 

123.7 

ioa 

5245 

1.031 

0499 

1269 

0786 

76TB 

0836 







Sweden 

(SKr) 

42.15 

8.04B 

8297 

2248 

0251 

2049 

2298 

8.929 

2061 

1882 

10 

1.734 

Qj«g 

1.781 

1289 

129.1 

1269 

NON BTM MEMBERS 





Switzerland 

(SFr) 

24.31 

4.642 

4235 

1.181 

0491 

1181 

1224 

5.148 

1200 

6720 

5.787 

1 

0484 

1.027 

0.743 

74.46 

0618 

Greece 

284213 

290.113 

+0.019 

B.6B 

-626 

UK 

(E) 

5024 

9295 

8240 

2.441 

1.014 

2442 

2.737 

1084 

2432 

2005 

11.92 

2267 

1 

2.123 

1238 

163.9 

1274 

IM* 

1783.19 

132027 

-827 

7.12 

-4/44 

Canada 

(CS) 

2328 

4.S20 

3228 

1.150 

0.478 

1150 

1289 

6.012 

1182 

94.44 

5.815 

0274 

0471 

1 

0724 

7249 

0800 

UK 

0786748 

0788569 

-0206063 

023 

2.13 


US 

Japan 

Ecu 

Yen pa 1JD00; 


» 32.71 
(Y) 328.4 
39.43 


2247 

6236 

7.B31 


SA30 

54.10 

6446 


D«*ti krarwr. French Rare. Nonmtfan 


1.568 
1546 
1416 
Itanar. and 


0460 

8.589 

0.796 


iseo 

16667 

1917 


1.782 

17.7B 

2148 


6.927 

60.14 

8462 


1614 

1811 

194.7 


1304 

1303 

157.4 


7.780 

77.45 

9456 


1446 

1343 

1422 


0451 

8.488 

0.785 


1482 

1279 

1466 


1 

9461 

1400 


1004 

1000. 

1204 


0429 

8478 

1 


QumM . Kronor oar to. Bother Rare. Escudo, Um and Peseta pw tOQ 


nnURH P MM) DM 125,000 per DM 


YU FUTURES QMM) Yen 125 par Yen 100 



Open 

iBSWt 

Change 

rtgh 

Low 

ElL vd 

Open hL 


Open 

Latest 

Change 

wgh 

Low 

Eat. voi 

Open b*. 

Sep 

0.6279 

02294 

+0.0016 

06318 

02252 

50.101 

83257 

Sep 

12020 

12020 

♦02003 

1.0070 

09073 

46293 

68207 

Dec 

0.0276 

0.6300 

+02013 

0.0320 

0.82S7 

940 

4246 

Dec 

1.0059 

1.0100 

+02010 

12130 

12049 

1224 

5251 

Mra 


02207 

- 

■ 

■ 

2 

1205 

Mar 

12150 

1.0185 

“ 

1.01B5 

12135 

31 

1200 

■ SWIM FRANC FUTURES (IMM) 9FT 12S200 par SFr 



■ STIRUNQ FUTUFtaS (IMM) C82200 par £ 




Sep 

0.7414 

0.7431 

+0.0016 

07468 

07385 

25.113 

40,422 

Sep 

12256 

12340 

+02084 

12430 

12228 

10200 

31,798 

Dec 

0.7427 

07450 

♦00023 

0.7485 

0.7403 

265 

1223 

Dec 

12270 

12330 

+02054 

12380 

12230 

118 

880 

Mar 


0.7456 




8 

18 

Mar 

1.5238 

12330 


12350 

12230 

3 

153 


EMS EUROPEAN CURRENCY UWT RATES 

Jiri 89 Ecu can. Rate Change 96 +/- tram % spread Dhr. 

rates against Ecu on day can. rate v weakest ind. 


13 

7 

-2 

-8 

-10 

-17 


&u canwl ton aal by tie Eurepeen CcRantedon. Currenctas we ta daacandrp tastes enngte. 
Faraartaga Changes we tar Ecu: a passive range dencaae a weak currency . Dberganua ahem tea 
rate b ras sa n two spread* Bra pan re ra a ge rttlawnee bat me n He actual martrat and Ecu cental retec 
tor a cuiency. end *a n wrtnu re pa m atwd pauwaaga dadaten of to eurrenev'a naM raw ton ba 
Eoi crate rats. 

(17AVM) Smbig and baton Lira auaparetee ton EHM. M^atmenc rrtabiwrt ty to Fftwncw Times. 
■ PtRUftPBLMRA SB OPTIONS £31.260 (penta per poraxfl 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 




Hal CM MO 


ott-eaioio 

I -I 


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CAP Money Manaprantai Co Ltd 
« Mm ttanl. T«Srii« TN9 2M OTTSTTOU* 

l+ina.. are 




- aasU-MK 

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The tWF Gfearfttos Deport! Account 

ZFire Start. ureoaKStWO ibis 

Danes* I <H -I uals-MB 

CestBd. of Rn. of Cbnrcii of England? 
lAniMiuteEceiM on-spiras 

l«eu -I asuls-aan 


Money Market 
Bank Accounts 


M CM HO 


AUran Hum Bank pic 
3D OO too. Lam 


taMytaSBc-larpn 

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are 

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+39 UB V 

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iu ui 2 

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034 



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Leopold Joseph A Sans United 

20 Cnooni £«oeL Lmw TEA 


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i ntlratend Wah tateteet Ckeque tec 
9M0B3. SfeaenSl IB- . ore 


ctsjwi-noojooo . law 3J« [ *eo [Jr 

CUXUUi |«ui .1475 XStt l 4.MI ® 

Oakwot Benson Ud w <ul 

i+a Kantua I«mi Lonau MM Snr .OM-ty «b 
NJCABCUCOH I+I2S 34 I *—D I Dm 

Klelnwart Bonsea Private Braik 
aateaW w aHewil waaa iiHcHaui 
laMBIonFWIi-UXMSr is» 

HJCAKSJdQ't lain Jia I *30 1 Mr 

Uowte Bank - k i w a traerttecount 

71 LsnaeMK Londm(C3P38S . 

■ - — 3 +J »«-t* 

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371 IB IM 

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ClOOiOao— dabo-a.. . VM 

1 -<11X10. 9.1* 

C5MXB+ <AS 

riojan, +ts 


as-aoMaBa.aoam&.i ib oreasiosia Ukcand RnW nlc 

010.000+ 1500 SSH 3l5U( Oo 

f2MO-CM« I 750 leisItSMl Ok 

f i oaae 
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tank of Scotland 

SLEC2P2CH 


encmani Ax tSOoO 

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lUtlomidde Bldg Soc - BtrataeakiMSlBr 


Barclays Select 
ratoTre,maK 


cLooo-cam 

nane-is+an — 

f25.ooo-ra9.Bos 

taugMKW 

ElOkOPD* 


WWMMO Bin. Cowiwy 


oaoo+ocioo 


450 300 +00 Deny 

+75 350 4.75 vauey 

&C0 375 SCO VMIy 

US 394 US IBrtf 

see +13 o JO reu>r 


nnw 


oa» 

1 310 

i 48 

it* 

1 iso 

2R5 

an 

IX 

123 

BIT 

480 

JtSJ 


1 4 30 

aue 

541 


Bracteya Prirae Account HLCA 
DO to B+l Wrt a 


cijno-c^an ud ijw 

tzjsoo-t am ire tea 

tlOJMS-aajM —73 ZjOO 

C2SM0* US £51 


000423209 
SJC 01 
227 at 
2.75 IX 
329 a 


Brawn Shk^oy 6 Co LU 

FnnM Ca-t. temftuy. Lraddi tC2 071-4009033 

MCA 1 400 1W 4J»i Qb 

M I un loo! +oi I an 


Cteedokirai Bank Pic 

&SiwopM5qDes.toeisp>Dt22DP mtSSBin* 
MCA 1 +75 35025 I -Itfrtdy 

Cater Alee Ltd 

30 Bktfrt Lm, lonto B3P SOI 071-0332070 

MCA — I 350 283 I ISO I to 

FhtdE5O00d+ I +00 - 4.70 to 

OHtegMC50JM)> I 427 -I a 40 1 to 


CkaitetteoseBsflkUmBed 
i hknew ten K4H TDK 

2Z2oo-maw_ 

ouno-MM . 

fSOO» R»29i I I I 421 

437 

227 
278 
204 
320 


ts»aM. . . 


CSAOOO, 

Portnran BWg Soc Piesdoa Cheque Acct»rt 

HfetasoMMO. DowKnadn. BrtJeH' a300fH30B3 

(50000. 1130 +13 1 iW to 

aj.aoo-ca9.999 I 500 ITS I 5001 Yaw* 

CW3MO-C599* I 45d 3 38 +20 YaaOr 

CnUOO-CIV.DtB .1 150 :m I 3 sol Men 

C220d-iae» I 2-so ml 2saireafy 

Rea Bnxfieis Undtad. Bankart 
amra ima u«k» toira ori-mauss 

roaofcxo-xl a re 1 Sd aesl Mi 

. aao 3JS a. so I to 

PUMbtoMteOwAt. I + » 3.10 1 +121 Ob 

Afl> 

031-4230302 
3JU Ok 
3« On 
270 On 

2tC OB 

1.51 1 DM 


Royal Bank Of Scotand pic Pnmhm 

42SlAaegiaS4.Ert«nns6M .03 


csaooo* 

E25000- £48.099 — 
ei(Loaa-G4^M — . 

Bjno - rs.!»rt 

C2000-C+9»9 


175 791 

MO 703 

7.75 200 

200 190 

1.50 1.13 


San & PnapKfflabart HMloo 

lS-TZWamntrU.RoirtMOMI Xa 

391 


ire 

resSAFbM i m +te 

TlGSAvaratw 441 


393 

100 

+90 



TyraM Bank pic 

2ft-ffl Mraotoi 
HKAfSCOOwtHarTU 
OMUWHBIAC1QOOO+ 

iwiacsoooo- 

MMAeiOOOOO< 

lyWrtTBSA— 


9.bbw 


3900 2023 1544 

3925 2.719 307B 

ireo 2913 30m 
3975 2900 3802 

4376 - +447 


0272 744720 
OD- 
OM 


|toaM2ltt 


Oydesdah Barit Ftaftb Sofedkn Ace 
309VkwantRm.E 


rwo+ODoaM 

£T0teO-£28teB 3J 

E3020(Mtete9 11 

eiooteo-noBteo— u 


The Co-aperattra Bank 

P0to30aStowTwdam.i*Ba 
TESSA _l B20 

.ra 

tO-BBtoWtoln 

£30900+—— 7T&2B 

£2tOOO-C«JI«9 I 490 

euyno-ez* jw9„ l +aa 
£5800 68939 — I 390 


SI PC 0+1-243 7070 

rn ire I ire I ■» 

175 201 I IN Ob 

in in I 185 1 am 



0349232000 
- 1 -I tony 

300 I *91 1 to 

"imI uzla-to 
no I +65le-to 
uni +Mls-Hn 
22a I loala-to 


UMtad Dombdons Treat UK 

po to K. non*, a** cm oai-t+r ;tu 

by9dnwto«"«toto 

£1900+ I 4 75 150 I 48+1 Ob 

United Tout Bank Ud {tanraufy ULC) 
1Gm>CH«MMn.LimH>WIH7A 0/1-2560004 
£10900-90 s>r oeaca. 8.78 500 I 0.02 3-47*1 

naOOO-IUtoXOM-. [ 750 1G3 794 o-to 

E2S900 - 1 rear 1 799 544I -I Ynrty 

J. Henry Schroder Hteaa A Co Ltd 

ISO CMamh. Unto Eta) 605 071-3020000 

socemacc. 490 ami 4oe| to 

cnunMWH I +2s 3» I 43:1 to 

Wualom Trust Mgh teteroal Chequa Ace 

rba Hwnanus fhmoirt fti iSE 

£15900+ 1+75 150 I 494 1 Qb 

135 I 
110 1 


£S900-£1+9H 1 +90 

CI900-£49W -1 4_re 


pra Act 

■ 07*22241 

I 494 1 I 

> I +»l < 

II +32) I 


2(1 179 0-4<*1 

US 2.44 12S a-to 

225 Ite 12S e-to 


490 105 I 4.1010 to 

100 225 USlO-UOi 

175 206 277 6-to 

231 173 1 232l9-H*< 

TdOMI 713213 


MOTES- inat ceenekaj ran sf www pw+n. rat 
HtaO bM al tBa (Mejdtai 10 hade nog mm ax 
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e aridi Honti w aedm ta «e mount. 


WORLD INTEREST RATES 


MONEY RATES 

duty 29 Over 

rtgHt 

One 

month 

If 

Si* 

mthe 

One 

yew 

LomtJ. 

Inter. 

Dta. 

rare 

Repo 

rare 

Belgium 

4Q 

5*4 

54 

53 

64 

7.40 

4.60 

- 

week ago 

5 


54 

5'i 

054 

7.40 

420 

- 

France 

6«fi 

<4 

SA 

5M 

6 

520 

- 

6.75 

week ago 

5* 

Si 

SA 

5* 

53 

5.10 

- 

6.75 

Germany 

5.75 

4.B7 

4.97 

4.08 

5.06 

620 

420 

425 

week ego 

4.90 

4.97 

4.86 

4.85 

428 

920 

420 

425 

Ireland 

eg 

Ol 

5*i 

64 

6>» 

- 

- 

826 

week ago 

5 

SA 

59ft 

Si 

8V* 

- 

- 

626 

way 

84 

SW 

SVs 

89 

99ft 

- 

720 

736 

week ago 

84* 

ew 

BA 

8fl 

94 

- 

7.00 

825 

Netherlands 

4.85 

420 

4.93 

603 

6.21 

- 

525 

- 

week ago 

4.85 

4.90 

420 

4.97 

5.10 

- 

525 

- 

Switzerland 

44ft 

<& 

4Tft 

4Vfe 

494 

6.325 

320 

- 

week ago 

4 

4A 

4A 

44 

4A 

6.625 

320 

- 

US 

4 V. 

*i 

491 

614 

sa 

- 

320 

- 

week ago 

fi 

<i 

4% 

SA 

61 

- 

320 

- 

Japan 


24 

21 

2Y« 

2h 

- 

1.75 

— 

week ago 

2 

24 

2% 

2H 

2 VS 

" 

1.76 


• SUBOR FT London 








Interbank Ruing 

- 

4*ft 

4?ft 

SA 

58 


““ 

■“ 

week ago 

“ 

4J4 

<fl 

5Yi 

69ft 

” 


■" 

US Dollar CDs 

- 

423 

4.94 

5.04 

520 

- 

- 

- 

week ago 

- 

4.33 

4.86 

4.99 

053 

- 

“ 

- 

SDB Linked Do 

_ 

3'+ 

2A 

34. 

4 



" 

week ago 

“ 

3!ft 

34 

3fc 

4 

“ 

“ 



■ JUKI MONTH HMOBARK FUTURES (UHFE)" DMIm points of 10096 


Strike 

Price 

Aug 

- CALLS - 

Sep 

Oct 

Aug 

— PUTS — 
Sop 

Oct 

1/460 

6.68 

8.57 

8.72 

. 

025 

025 

1278 

020 

033 

623 

- 

024 

029 

1200 

3.80 

429 

4.73 

006 

083 

1.18 

1225 

1.78 


3.16 

049 

1.41 

2.06 

1260 

023 

129 

arm 

1.73 

2.68 

328 

1276 

0.08 

0.86 

1.16 

3.72 

4.40 

422 



Open 

Sett price 

Change 


Low 

Eat. voi 

Open ML 

Sep 

95.11 

9513 

+024 

9514 

95.10 

8752 

170023 

Dec 

95.04 

9527 

+025 

9509 

9502 

23203 

173856 

Mar 

9424 

04.84 

+024 

9428 

8421 

24393 

157778 

Jim 

94.52 

9425 

+02S 

9428 

9421 

9284 

92182 

■ THREE MONTH EURO LIRA HTJUTE PUTWtSS (UFFQ LI 000m points of 1009ft 


Open 

Sett price 

Chraige 

Hgh 

LOW 

Eat vol 

Open M. 

Sep 

91.14 

8128 

♦006 

91.18 

9122 

4341 

30632 

Dsc 

8085 

9070 

+009 

9027 

9072 

2867 

49010 

Mar 

80.46 

0045 

+029 

90.46 

9036 

1079 

13332 

Jvi 

8025 

882® 

+029 

9025 

8925 

1264 

11507 

■ THREE MOUTH EURO SWISS FRANC FUTURES AJFFE) Sfrlm points of 10094 


Open 

Salt price 

Change 

High 

Low 

EsL vol 

Open Int 

Sep 

9523 

9624 

+021 

9565 

9526 

2790 

23449 


9546 

9545 

*021 

96.47 

95-40 

1684 

0241 

Mar 

9526 

05-23 

-OOI 

9527 

9522 

1096 

10294 

Jun 

9425 

94.95 

-002 

9420 

94.95 

202 

2482 

■ THREE 

MONTH ECU FUTURES (UFFE) Ecu 1m poteta Of 10096 



Open 

Set* price 

Change 


Low 

Eat vol 

Open Int 

Sep 

9321 

9506 

-023 

0324 

8581 

1737 

10861 

Dec 

83.70 

B567 

-OOI 

93.73 

9554 

1061 

0042 

Mar 

93.47 

9545 

- 

0548 

9540 

205 

4527 

Jun 

9020 

0515 

- 

9320 

B3.10 

107 

1144 


ecu Ltatod Dm mid ntm » rnth: 51: 3 rrth* 6:6 mite S 3. 1 year P+S 

rotas ora otlorea ratrt lor *10* quoted to to nurto by lour retai otte tuna « Jlwn «ch woddno 

do*. Rw bonta ore. tekra Th ml Bonk <9 Tolnd. Bardayo and Nofl^ to^nbaW- 

MB HOM we ahdto lor tea <*jnw*ac 44onay Rues. US S CCb and SOR Ltoed DopoeR* (DtJ. 

EURO CURRENCY INTEREST RATES 

Jid 20 Short 7 days One Threo Six One 

term nonce month months monPra 


Belgian Franc 
Danish Krone 
D-Mark 
Dutch QuOder 
French Franc 
Portuguese Eee. 
Spwnan Peeea 
Stertte g 
Swta Franc 
Can. OoHsr 
US Deter 
Roten Urn 
Yan 

Asbn Stertg 
Shun term rrtaa a 


5.*. - 4K 
5*1-51* 
5,'a -+!1 
4!l ■ «}J 
5*8 

1C 5 » - 11^ 
8*1 - B% 
4-| • 44| 
4«* -4 
S^B -515 
• Ail 
9 - 7«2 
2»s - 2} t 
3%-3% 


5.V - <11 5d 

5*, • 5*4 511 

5-4^ 5 

4}1 - 41 <U 

5^ - 5^* 5,1 

11*8 - 11^4 12*4 

»A - 8 8*8 

5 ■ *"s 

4*» -4 

5*2-5*. 

<A - 4,1 
ai+ -8*8 

2*. - =,‘e 


rt 

4i* 

5*2 

<*2 

8*2 

2*1 

4A 


-5A 

-54 

■ 4-a 

-4? 
-5A 
• 11*» 
-7|1 
-5*8 
-4*a 
-5% 
-<*l 
-8\ 

. ** t 

* ■ l« 

•44 


1 cat ha to us Doer bv) Yen. cewre. 


5,1 - SA 
6 - 5T» 

5 - < 7 fl 
<H • i\l 

5A - 5,1 
12 - 11-4 
8*8 -7i2 

6 - 5% 

<A - <A 

511 - 5!1 

<11 - <fl 

8*2 • 8*8 
2*+ - SA 

41. - 4*8 
two days' 


5H - sfl 

6.1 - BA 
54 - < | 

6t* - S>8 
12*e - UJ, 

8>+ • 84 
8*8 " 8*0 

4.1 ■ 4.V 
6*2 -6*8 
SA - SA 
mi - hk 
2U - 2A 
54 - 54 


84-5SJ 
6,'i -8% 
5*8-5 
5*4 -5*| 
6 - S* 
12 - 11% 
8*2 - 8A 
8% -54 
44 - 44 

7*2 - 7*8 
54-5*8 
0*8 -0*4 
2B-Z15 
5*1 - 514 


- UFFE tituras traded wi APT 


M THREE MOMTW BUROPOU-AR (1MM) Sim pobltt o 1 1QOte 
Open irarast Change High Low 
Sep 94.78 94.30 +0.13 94^2 94.76 

Dec 943)8 S+23 +0.15 94.27 94.08 

Mar 9X85 94.01 +0.17 94,04 9681 


■ US THgASUBY BUX PUTUWtt (IMM) 81m per 1009* 


gst vql Open M. 
78.483 426^00 

123935 441.752 

68267 331^87 


Sep 

95.21 

9555 

+0.14 

9535 

9520 

1.905 

18^57 

Dec 

94.65 

94. BO 

*015 

94.81 

94.84 

531 

6,934 

Mar 

94.40 

94153 

+014 

9L55 

94.48 

130 

2388 


fit Open mwreal ng+ure lor preeoua d»y 
« Pi mo ipeeac OP TIOWS fl-FFE) DMIm pants at 100% 

^ CALLS ~ 

Price Aug Sap Oct 

genn U14 0.16 0.15 

962S 
9550 


■ mm MONTH HSOR nmnu (MaTTF) Pans Inwrtrank Oftyed rate 


Dec 
n» 

0.01 aoa aa6 0.10 
0 0.01 602 0.04 

E«. -y wW. Cto 1409 Pub lOM. Prsrtaue dayY open W- Oto 29909 0 Pum i« 982 
■ PIMM aawss W7AHC UPTIOJiS ILIFFg SFr lm pana ol 1PP96 


PUTS — 

Aug Sap Oct 

OOI 0.03 008 

0.13 0.15 0£3 

037 038 096 


Dec 

0.16 

028 

0^7 


Sap 

Open 
94 30 

Sen price 
94 35 

Chengo 

*0.01 

High 

94 39 

Low 

94.3b 

E-rt. vol 
11571 

Open int 

48 366 

Strife 

Pnoe 

Sop 

0J?0 

0 D7 
0.03 

r-.gw ipo Pua 

Dm 

94.19 

9422 

*004 

94 25 

94.19 

9.59? 

35^63 

9650 

Mot 

93.07 

9599 

*003 

94 0? 

9597 

5947 

31.407 

9575 

Jib, 

83.76 

93 70 

•003 

93.6? 

9176 

2.066 

24.179 

6600 

E?l •«<. nu, 


CALLS 

Dec 

016 

0.08 

Q04 


Mar 

023 

0.14 

008 


Sep 

0.06 

018 

029 


PUTS 

Dec 

023 

028 

060 


Me 

060 

068 

086 


ill Prevdue oafo t*en n. CM IMS Pub 1400 


teTIMOd MONTH miOOOUJUl (LlFFE)' Sim poiritt) of 100% 



Open 

See price 

Change 

High 

Low 

Eat. vol 

Open mt. 

Sep 


94 96 

-0.30 



0 

3030 

Dec 


94 JO 

*027 



0 


Mar 

0193 

94.06 

*029 

93 93 

9193 

20 


Jun 

93 53 

W.7S 

.036 

3153 

Sib? 

IO 



PrwAoua Iteire VOL. CMi BteS Put* 092B . Plw. day^ opan taL. CM* 879220 tea S39278 


UK INTEREST RATES 


LONDON MONEY RATES . 

«M 29 Over- 7 days One Three Six 

night notice month mondte mottle 


Ona 


Interbank Starting 5 1 * - 2 5* - 4* 54- 5*8 6-5*4 8%-5* 7-8*j 

Stertng CDs - - 5* - 64 5% - 6*4 Sft - 54 8ft - 64 

Treasury Bfe - - 5* - 5 5,*, - 5% - 

Bor* B9a - - S»s - 5 6** - 5*a 6% - 5*2 

Local authority depa. 4i|.4fi 4l2-4}| 6*8-5 5%-5V 5/i-5fi 84-8,1 

Dtecount Market daps 5 - 4 4ft - 4ft 


UK 


1 tendng rate 5^4 per cent trem February A 1994 

Upiol 12 3-8 8-9 

months 


9-12 


Carta ol T« dtp. (E100200J 1*2 4 3% 34, 3*2 

Carta or Ta» tep- water CUJCflDO la Uapo. Dapeto arthdr a w n ta caah **pc. 

Awe tender rate of dttcturt IBCCBpc ECQOnxed rate Sdo. Eoport Fktwica. AteM tpday JUy 29. 
108+ Apeed rate tor partod Aug 24. IBM to Sep 25. 1884. scheme 8 a II aeopc. Htfeam rate lor 
partod Jrty 1. 199+ «o toy 29. 109+. Schamae IV a V 62+eopa finance House Oaae Rate 5‘jpc tart 
Aug 1. 1884 

■ THR— I MOMTH STSHUMQ R/TUBE8 (UFFE) £500200 poblts of 10096 



Open 

Ban price 

Change 

High 

Low 

ESL vol 

Open Ink 

Sep 

94.32 

9196 

-033 

9435 

9334 

79222 

100309 

Dec 

9160 

9127 

-027 

9163 

9111 

109500 

152143 

Mar 

9101 

92.71 

-022 

0101 

92.50 

17587 

07908 

Jun 

62.42 

3228 

-009 

82.45 

92.07 

6880 

53234 


Traded on APT. Al Opwi Inobeet 8ge ere lor pre rl o u a day. 

■ SHORT grpaJMQ OPTTOfa (LlFFE) E500200 points of TOOK 


StreCB 

Price 

Sep 

- CALLS - 
Dec 

Mar 

Sep 

— Pl/TB 
Dec 

9375 

029 

016 

012 

009 

094 

9400 

0.16 

0.09 

007 

021 

062 

9425 

038 

0.06 

0.04 

038 

1.03 

Est. not renal. Qte 4)2fl0 Pun 30*37. Previous e tab's 

open tat, Crts 230578 Puts 


Mar 

1.16 

126 

1.68 


BASE LENDING RATES 


Adran 8 Company 526 

ABed Trust Bark 126 

A© Bank - 525 

•Henry AnaDachar 525 

BartrcfBarcda 525 

Bflro> BRttoVnmyfl 525 

Bark ol Cyprus 525 

Bankotlreteid .....525 

Bankaftrete— ..-526 

Bank of Scdtend 525 

Bardays Bank S25 

BrflAofMdEtet 525 

•aowrtSNptey&CoUJi25 
CLBankNadetend... S2S 

CMbarti NA ...IS 

Oydeadaie Bank 525 

The 0»«peiratw Sark. 525 

CouttsS Co ..525 

Craft Lyrarete... 525 

Cyixus PcpiterBarft -525 


% 

Duicrti Lowrte 525 

Exatar Bank limited— 825 
Financial & Gen Bar*.. 6 
•Robert Flwning 6 CO ... 525 

Girobank -.525 

■GUnnaaB M o tor 525 

Habte Bank AG ZUrtctt . &25 


■ Rotoaghs Guarwaae 
OMBMwUBWIlno 
longer autotsod a* 
abanMnginsfhAn 8 
Royal Bk of Scotland- 525 
•SmBi & Wtenan Sees . 5^ 
TSB 525 


•HambroeBenk 

— 525 

•Unted Bfc of Nwret. 

_ 525 

Hartabie & Qen tevBk. 525 

Unby Trust Bank Pic 

— 525 





C. Hose a Co 

— 525 

WUrewrayLaMaw.. 

.-625 

Hongkong a Shan^tet 526 

Yoriahire ar* 

-525 

JUten Hodge Bra*. 

— 525 



•LoopoUJoeecn & Sons 525 

• Members ol London 

Uctytts Bank 

. — 525 

Investment Banking 

Megto) Bank Lid . .. 

...525 

Aesacbaton 


Mdterd Berta ... — 

— 52S 

■ tfi toibteiaten 


* Mount Bartog 

0 



NatWastmtester 

— 525 



•Rea Broteers ........ 

....526 





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14 


1r 


FINANCIAL TIMES 




WEEKEND JULY 30/JULY 31 IW 



ftru.Py-g! t>l ^ i, ? SS J? 30 * shown beta* have been taken wfth consent 
Stack ^change Official List and should not be 
reproduced without permission. 

^Details relate to those securities not Included m the FT Share Information 

a* JU r !^ S ii ,me ™ teo tnc2caled . f*** 5 m in pence- The prices are those at 
wurt tt» du9iiks was done in the 24 hours 141 to 5 pm an Thursday aid 
saffled through the Stock Exchange Tafisman system, they are not In order of 
»®«iton but in ascerufing order which denotes the day’s highest and lowest 


LONDON STOCK EXCHANGE: Dealings 




British Funds, etc 


Trewray 13V* S&.2DOOKB - E12SA 

PWyeq 

Exchequer 10%W Stk 2005 - E114& 
E7Jy»4) 


Corporation and County 
Stocks 


Commonwealth-Government 


South Australian 3% Cora tra Stk 1910{or 
after) - £28 


Foreign Stocks, Bonds, etc- 
(cou pons payable in London) 


Abbey National Strafcng Capital PLC 8 \% 
Sttoord GM Bds 2Q04(8r£Varot - £94% % 
Abbey National Treasury Sra'«PL£7%% 
Gtd Not 193B(BrEVar)-£S8<J> 

Abbey Notional Treasury Sens PLC 8 % GW 
003 2003 & £ War) - £32% % 

Abbey Natural Treasury Sarvs PLC 1 D%W 
Gut Nts 199? (Hr CVar) - CUM. 55 

Acer Inonrpor a ted 4% BCa 2001 (&S 1000 G) - 
$340 241 

Asda Finance Ld 10 %% Cnv Cep 
Btb2005(Br £50006100000) - £107 
PSJyW) 

Barclays Bank PLC 65% Nts 2004flStVari- 
O..I I . P84% 06JuS4t 
Bvdays Bank PLC 9ft Petm tot Boeing 
Capital BdKprf: Vaj) - £ 88*2 
Bar cla ys Sank PLC 9575% Undated Subord 
Nts - £96% p5Jy94) 

Bradford & Stanley BMkfing SacatyCaOared 
AgRHNU 2003{Reg MuMEIOOO} - £3305 
(Z7Jy04) 

Bradford & Bin^ey BuMng SooetyCotarad 
FUgRto Nta 2003 (Br£Vto)-E92Sft 

33554 

Bristol & West BlAfing Society 10%% 
Eubod Bds 2018 (Br E Vu) - £1(0075 
POJyfti) 

Bnatol A West Bufcflng Society 10%% 
Subcrd Bds SOOOQBAIOOOO&IOOOOQ) - 
£ 102 % 

Britannia Bulking Society 10 %« Bds 2000 
(& Cl 00008100000) . CIOBft (ZSJySfl 
Brflteh Aerospace PLC 10%% Bite 2014 
(BrCiaOOO&IOOOOO) - £105% flU (22Jy94) 
British Airways PLC 9%ft Nts 
1997{Br£1000&1000a) - £103% (27Jy94) 
Brtoh Airways PIC 10% Bds 

ime^Giooo&Knooi - cioa% czsjyw 

British Gas lira Finance BV 6 %% Gtd Bds 


anS(BrSVM - 580% 90% (27JyM 

0 %ft 


British Gas M Finance BV 10%% Old Bds 
19B8(Br SCI 0003 10000) - SCI 03% 103% 
(28Jy94) 

BllDsh Gas PLC 7%ft Nts 1997 (Sr E Iter) - 
E100 (28Jy94) 

Brittah Gas PLC 7%% Bds 2000 (Hr £ Wv) - 
£B7 t > t cajy9<) 

Britton Gas PLC 8%% Bds 2003 (Br E Vir) - 
EB6%0BJy94) 

British Gas PLC 8%% Bds 2006 (Br E Var) - 
C97% 

Biteah Tetacommricatkra PIC Zrao Cpn 
Bd>2aOO(Br£IOOO&1DOOO) - £53% n 
P7Jy94) 

British Tetecamrnraicralorts PLC 7%% Bds 
2003 (Br £ Vte) - £90% p8Jy94 
Bramah Casta* Capttaipersey) Ld 9%% Cnv 
Cap Bds 2008 (Reg £1000) - £148 90 
Commercial (Mon PLC 10%% Gld Bds 2002 
fijr £ Vte) - £107% (22Jy94) 

Defly Md & General Trust PLC 8%% Each 
Bds 2005 (BrCIOOOSSUOfl) ■ £154% 
DenmarkpOngdoin oQ 8%W Nra 1988 (Br £ 
Var) - £94% % 

Depfa Finance N.V. 7%% Old Bds 2003 (Br E 
Var) - £87% (2SJy»4) 

□fans Group (Capital) nc 8%% Cm Gld 
Bds 2002 (BrESOOOSSOOOO) - £85 (25Jy94) 
□aw Chemical Co Zoo Cpn Nts 30/57 
B7(Br£1 00061 0000) - EJ9% (ZBJy34) 
Eastern Boctriclly PLC 8%% Bds 2004(Bl£ 
Vtes) - £98d |28Jy94) 

Bapratfhen* AS 7%ft NO 1BB7 03rSC Vta) 
-SCB8%pSJy94) 

a En ta rp ha e Hnrace IV! 8%% Gad Bwh 
Bds 2006 (Rag £5000) - £89% 10055 
<28Jy94) 

BT En ter rabe Ftaraice PLC &%% Gtd E*ch 
Bds 2006(Br£5000&1 00000) - £98% % 
PSJV94) 

EaporWmpart Bank of Japan 6%% Gld Bda 
2000 (Br $8000} -S0B%4> 

Far Eastern TmdBe Ld 4% Bda 
2O08<prt1QQ00l • Si 10 
Fu| Bank Ld1%K Cm Bda 2002(8*5000)- 
$112112% (z2JyW) 

GES8 PIC 035% Gld Sac Bda 2018 
(BrCIOOO) - £33.9 (22Jy94) 

Grand *4«t)miulinin tav Carp 7% Nts 
1999(Bi$ Various) - $88 (26Jy94) 
Gu eia ntuud Epat Ftaance Crap nC 10%% 
Gld Bda 2001 (BrtVa) - £1092 % (2BJy94) 
Giarantaad Export Fkfaca Crap PLC Old 
Zrao Cjm Bda 2000(Br£100008.10000a) - 
C59a(28Jy94) 

Gutman HC 7%% Nts 1997 (Br £ VBr) • 
£97% 

Gufrtneea PLC 10%% Nts 19S7 (Br £1000 $ 
10000) - £10513 

Hcdttax BuMPg Society 7%% Nts 1998 (Br £ 
V*) - tS7\ p7Jy94) 

Hdbx Bidding Society 10%% Nts 
i987(Brtiaoo*iaooq - cioe^szs 
(Z2Jy9fl 

Hanson PLC 9%% Cm 8ubord 200G (Br 
EVafl - £110 

Hanson PLC I0%N Bds 1997 fiBr £Vor) - 
£105% (ZfJySJ) 

Hanson Trust PLC 10% Bds 2006 (BTCSOOQ) 


• C1O205 3A C8Jy94) 
Hycko-Guebec 9%K.Deb 


Dabs Sra GY 6/6/ 

95&E1000&10000) - £102 A (26Jy94 
Imperial Omdoal Induatriaa PLC 10% Bda 


2O03{BrC1OOO»1GOOa) - C105%^N^ 


I nterna ti ona l Bank for Hoc 4 Dev 9 %% Bds 
2007 (BrfSOOO) - £103% 

RaMRepuHc of) 9%% Nts 1895 
(Br$1 00004100000] - $104.1 
ttrVy(BaputAc of) 10%% Bds 2014 

(Br£l0000as0000)-£106H8 
Japan Dewfopmant Bank 7% Gtd Bds 2000 
(Br£VW)-E82A 

Karate Bactrtc Power Co too 7%% Nts 19» 
(Br E Var) - £96% (26Jy94) 

Kyuahu Bscfrie Pawar Co Inc 8% Ms 1997 
(Br £ van - £99%4 

Land Securitas KC 0%% Cm Bds 2004 
(BrfSOOOafiOOOQ) - £112% (27Jy94) 

Lasnc PLC 7%% Cm BdS 
2005(BrC100041000C} - ESS (25Jy94) 
Leeds Perm a nent BuSUng Society 7%% Nts 
1997(Br£Ya) • £0B%4 
Leeds Pamanant BuMns SocMy Colteed 


F»B Rte Nts 2003 & C W) - £94% 

Lowta (John) PLC 10%% l‘ 


1 Bds 1098 (Br 
£100004100000) - £10508 (25Jy94) 

Lloyds Bank PLC 7%% Subort Bds 

2004{BiEVjsfouB) - E80% 

Uoyds Bank PLC 9%% Subrad Bds 3009(B£ 
Vas) - EB8% pSJyftfl 
iloytia Btsfit PLC Subrad Rtg RS& NtsQ&C 
Vara) - £100.15 100% (22Jy9-q 
London Baetriciiy AC 8% Bda 2003 pr C 
var) - £94% (?7Jy94) 

M^>C PLC 1(^4% Bds . . . 

axnprEioooitooqo) • £ 102 % % % 

(26Jy04) 

Munifateky Finance Ld 9%% Gtd Nts 1997 
(Br EVnrJ - £104% 06Jy94) 


Nadonte Gild CO PLC 7%% Sea 1998 (Br £ 
V»r) - ESTja (38Jy9fl 


NatkxiJ 4 PrcMnciaJ Bktg Society 8%% Nta 
■ £99 % p7Jy94) 


1998 (Br E Vra) 
Natto 


r Bank PLC 11%% Und- 


London County 2%% Cons Stk TSZO^r aRort 
- £26 

B kinkiU iain Psatct Countd 11%% Bed Stk 
2012- £110 B2Jy94) 

Glasgow Carp 3%% Ind Stk - E33 
HuB Corp 3%« Stk(3nd Iss) - C34 
LmdsfOty of) 13%% Red Stk 2006 - £130% 
|22JyS4) 

Liverpool Coip 2%% Red Stk 1923(or aftert - 

£28 (Z 7 Jy 94 ) 

Manchaster Cap 3% Bad Cora Stk 192f*cr 
after) - £33% C25Jy94) 
Newcasfle-Upan-Tyns(City of) 1l%% Bad 
Stk 2017 -Cl 14% 

Resting Corp 3% Stk 19S2fgr after) - £31 
(26Jy94) 

Raecfing Cap 3%% Stk - E38 (27JyW) 


SubMs ClOOOfCnv to Prfjfteo - £107% % 
PTJyM) 

Naflonte Westminster Bank PLC 11%% Und- 
SubNts EKKJOtCm to PriJBr - £108% 
(22Jy941 

Nationwide Bufkkno Society B%% Subord 

Nts 2018 (Br E Vte) - GB7% 

New Zealand 9%% Bda 
l9B5(BrC1 00041 0000) - £101% (2SJyS4) 
Norsk Hydro AS 9%% Nts 2003 (Br 
(M 000410000) - £102 (2SJy94) 
Nrat fm iibrtan Water Group PLC 9%% Bds 

2002 (Br C Var) - £100% (2SJy94) 

Osaka Gas Co La a.125% Bds 2003 (Br £ 

Var) - £93% J2BJy04) 

PadSc Sectric WlraaCatSa Co Ld 3%% Bds 
3QQ1(BrS1Q9Xl) • SI 19% C5JyB4) 

Pearson PLC 10%% Bds 
2008(flr£T00041000Q) - E107A PSJy94 
Prudential Finance BV9%% Gtd Bds 2007 
(BriSOOO&IOOOOO) - £100% C37JyS4) 
AudantU Realty Sacs lit Inc Gtd 2wu Cpn 
Bds 1571/9901*1000) - $7206 (Z6Jy94) 
RMC Capital Ld B%% Onr Cap Bds 2006 (Br 
£5000450000) - £130%$ 

RTZ Canada Inc 7%% Got Bds 
1B9BfBi£S000410000q-ES4% <27JyB4) 
Redand Captaf PLC 7%% Cm Bds 
200Z(Br£1 00041000(9 - £10S>2 (27Jy94) 
Royal Bank of Scotland PLC S%% Beta 
200 4<0rfVara) - £83% C27Jy34) 

Royal Bank of Scotland PLC 9%% Undated 
Subord Bds (Br £ Ve) . £35% (2£Jy94) 
Royte Bank of Scotland PLC 8%% Subrad 
Bds 201 5(Br£1 000041 000000) - EB6% 

Boy d Insurance Hdgs PLC S%% Sutxxd 
Bds 2003 (Br £ Var) - £97% 

SataabuyU) PLC 12%% Nts 
1995(Brt1000A10000) - £10343 f22Jyfl4) 
Salnsbury LLXChamMl WanfaUI 
B%%CnvCapBds 200S(Br £50004100000) - 
£130% (26Jyfl4) 

Severn Trent PLC 11%% Bds 2001 (Br 
£50004100000) - £112 02Jy94) 

Stem C ram wi UUI PLC 3^5% SUrard Cm 
Bds 3004 - $85 85% (25Jy84) 

Sincere Navigation Corporation 3.75% Bda 

2003 (Br $1000041 00000) • $109% 110% 

(26Jy94) 

SmthUne B aec tia m Capital PLC 7%% Gtd 
ras 199B (Br £ Vw) - £98% fZBJyS^ 
SmritiMM Baectiam C^xtte PLC B%% Gkf 
Nts 1998 (Br £ Vat) - E96U 9 (25Jy94) 
Socteta Generals 7075% Perp Subrad Nta 
(Br £ var) - £87% 

Tarmac Finance (Jersey) Ld 9%% Cm Cap 
Bds 2008 (Beg £1000) - £104 S 
Tate 4 Int Financ e AC 8% Gtd Bda 
1909(B>£l 000041 00000) - £98% (28Jy9« ) 
Tate 4 Lyle Int Hn PLC 5%% Gtd Bda 2001 
(» £5000) - £84% (22Jy94) 

ToteALyfe totfin PLC/TateSLyle PLC 5%% 
TAUtFriGtSds 2001(01 W/WtsT4LPLC - 
285% (27Jy84) 

Tosco Cap(al Ld 9% Cm Cap Bds 2005{Rag 
£1) - £115% 6% 7 08 % 22$ %| 

Tosco Capate Ld 9% Cm Cap Bds 
2005(Bl£5000A1000G) - £116 (28Jy94 
Thamee Water PLC 9%% CnvSubordBdo 
2006(Br£SOOQ&50000) - £126 (Z7Jy94) 
Tokyo Bactric Power Co toe 7%% Nta 1998 
(Br £ Vra) - £97% (22Jy94) 

Tokyo Bectnc Power Co toe 8.125% Nts 
2003(Bl$ Vbf^ -S8905 89.7 C?7Jy9q 
Treasury Corporation of Victoria 8%% Gld 
Bd9 2003 (Br £ Var) - £97% (27Jy94) 

Traig Ho Steel Enterprise Crap 4% Bds 
2001 (B<S 1 0000) • $112% 

U-Mng Marine Tranaport CraporatHn1%% 
Bds 2001 (Reg In Mtel $1000) - $107% 

108% (2UJy94) 

Ut«ew PLC 7%% Nts 1BB8 (0r E Vat) - 

EBB%p7Jy94) 

United Kingdom 7%% Bda 2002f&SVa) - 
S970(3BJy94) 

Vkaraxai PUc Attn Fto Agency 9%% Gtd 
Bda 1999(Br£Var3) - £104^ (Z8JyS4) 
Welcome PLC 9%% Bds 
2006(Br£T 000410000) - £10£% (ZSJyBfl 
Woolwich Bddng Society 11%% Subord 
Nte 2001 . £110.15 (38Jy94) 

Woahvteh Bukflng Society 10 %% SUxxd 
Nts 2D17 (Br £ Vta) - £99% 

Commonwealth Bonk of ArabaKa SAlOOm 
7%% Nts 5/8/2003 - SA87% 87% 

State Baric of New South Wales Ld 9% Bds 
2002 (BrSA Vte) - SA95% 95% 96 (28Jy94) 
Svraden(K)ngdoni at) ESOOm 7%% Me 3712/ 
97-697% 8% 

SwwtenPOngdom of) £2S0m 7% tosbumenti 
23/12796 - £94^ 

BaradenOOngdom of) SC200m 8%% Dteft 
rnab 29/12/99 - $09408 &6Jy94) 
SwadenOOngdom oQ E3S0m 7 %% Bds 28/7/ 
2000 - 694% 

Swedenpangdom of) SC300m 8% Dafat 
instnamnb 12»2003 - $C81% 92% 
C25Jy»4) 


Sterling Issues by Overseas 
Borrowers 


Austfaft^CrarwTmiwaaWt of) 11%% Ln 91k 
2015(Baa) - 6121 p7Jy94) 

Bank of Qmooa 10%% Ln Stk 20lOPag) • 
697 

Bank bf Greece 10%% Ln Stk 2O!0(Bi) - 
£97% 8% (Z7Jy84) 

Cradft Fonder Da Franae 
10%%GtdSerLnStk2011.12.13.14(Bas» - 
£114A^5Jy84) 

DanmorldKtegdcxn of) 13% Ln Stk 2005 - 
£130 (27Jy94) 

European kiveobnont Bank 9% Ln Stk 2001 
Oteg) • C101% 

European trweetment Bank 9%M Ln Stk 
2008 - £106% 

EUopean krvesknerit Bank 10%% Ln Stk 
2004(Begl - £109£ 

European investment Bank 11% Ln Stk 
20C2(R*(fl - £113 (27Jy94) 

FHendjfiapuMc of) 11%% Ln S»( 2009 (Retf 
- £117% B (27Jy94) 

Uematlonte Bank for Rac 4 Dev 110% Ln 
Stk 2003 - £117 % (27Jy94) 

Malaysia 10%% Ln Stk 2009(RegJ • £108 

RM 

New Zealand Vt%% Stk20Q8fftert - W17% 
CSJy94} 

New 2etew>d 11%% SO(2014(Bet) - £125 
«Z2Jy94J 

Nova ScodafPtovInoe of) 11%% Ln 8tk 2010 
-£123% GOJyMJ 

Portugoipep ol) 9% Ln Stk 2018(00 - £100% 
(22Jy»q 

SwadtnIKingdom of) S%K Ln Stk 201-KRrW) 
-C107%%P2Jy94) 


Listed Companies(exduding 
Investment Trusts) 


ASCI Ld 5%% Cum Prf R2 - 4S B8Jy94) 

1 b%% Cm 


ASH CapKol Ftoanoe{Jeraey}Ld I 

Cop Bds 2008 (Reg LMs lOOp) - £82 2 


Aetna Malaysian Growth Fund(Cayrnan)Ld 
OrdSOOl - Si 


$ 10 % 11 % 

AkMrt Rehra Group PLC ADR tiort) - S4S4 

Aloxmdere Wdga PLC ’A m ft3LVfOM lOp • 

24(28Jy94 ) 

Ateaoon Group PLC 805p (NaQ Cm Cum Rad 
Prf IOp-501 (2&fy94) 

Abed London Properties PLC 10 % Cum Prf 
£1 - 108 P2jy94) 

AWed-Lyora PLC ADR (1:1) - 98% P7Jy®4) 

Ateed-Lyom PLC 7%% CUm Prf D - 78 
tS5JyB4) 

AHed-Lyona PLC 11%% Deb Stk 2009 - 
C12O%1%0%p7Jy«) 

AftwRywa PLC S%% Um Ln Stk - £81 
p3jy94) 

A»atAyon»PLC8%% UnaLnSK-£B7% 
(27Jy9fl 

AfleeM-yraW PLC 7%% Uns Ln Stk 93«8 - 
£94% 

AHecKyans FferancU Stevtaaa PLC8%% 
GkfCnvSubatdBda2008 RegMtACIOOO - 
£109%p6Jy94) 

AMa PLC 50% Cm Cun NorvVtg Red Prf 
£1 -73 3 4% 

American Braids Inc Sha of Com Stk $3,125 
- $34% 

Aimrtttch Crap Sha of Con SBr $1 - $39% 
08*94} 


FT-SE ACTUARIES INDICES 


The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 IntSces and the 
FT-SE Actuaries Industry Baskets are calculated by The International 
Stock Exchange of the United Kingdom and Republic of Ireland Limited. 
6 The International Stock Exchange of the United Khgdom and Republic 
of Ireland Limited 1994. All rights reserved. 

The FT-SE Actuaries AB-Share Index is calculated by Tire Financial 
Times Limited In conjunction with the Institute of Actuaries and the 
Faculty of Actuaries. O The Financial Times Limited 1994. AB ri$its 
reserved. 

The FT-se 100, FT-SE mm 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-SE Actuaries AB-Share 
Index are members Of the FT-SE Actuaries Share Indices series which 
are catenated In accordance with a standard set of ground rules 
established by The Hnanda! Times Limited and London Stock Exchange 
In conjunction with the Institute of Actuaries aid the Faculty of Actuaries. 

“FT-SE" and “Footsie* are joint trade merits and service merits of the 
London Stock Exchange and The Financial Times Ljmttad. 


For those securities in which no business was recoded In Thursday's 
Official List the la t es t recorded business In the four previous days is given 
with the relevant dam 

Rtfe 535(2) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Reputfc of Ireland Lid. 

t Bargains at special prices. $ Bargains done the previous day. 


Wafer PLC 5%% tnoex-Urted LnStk 
£132 

flflda Property Hkigs PLC 10 5/16% 1st Mg 
Deb 80(2011 • £101% 

Asprey PLC 9%% Cum Prf Cl - 107% 10% 
E5Jy94) 

Mandated BrttBi Foods PLC 7%% uns Ln 
S8< 07/2002 5Cp- 45 C8Jy94) 

Attuooda PLC ADR (5:11-39^4989 (28Jy94) 
AKWoods (Fi n an ce) NV 8%p Gtd Rso Cnv Prf 
Sp-»1 pBJy94) 

Automated SecurtypMga} PLC 6% Cm Cum 
Red Prf £1 - 60 1 p7Jy94) 

Automobile Products PLC 9% Cum Prf £1 - 
107 10 (20Jy94) 

GAT industries PLC AIW &1} - S13,i 
p7Jyfl4) 

BET PUJ ADR (4:1) • SB0S976 (26Jy94) 

BM Group PLC 40p (Not) Cnv Cum Rod Prf 
20p-S7 

BOC Group PLC 12%% Lira Ln SA 2012/17 
- CI25(27Jy04) 

BTP PLC 70POM) On Cun Red Prf lOp - 
197 C8Jy94) 

BTH PLC AOR (4:1) - S23.1 
Btete of ketendfGbvemor 4 Co Of) Un& NCP 
Sa SrsA Ir£l4fr£9 LfqutdaOon - Cl 1 1105 
BSTO Hamas Group PLC Otd lOp - 13S 
(?7jy94) 

Barclays PLC ADR (4:1) - E22J38 (20Jy94) 
Bardaye Bank PLC 12)6 Us Cap Ln Sac 

2010 - £1 IB (27Jy94) 

Barclays Bank PLC 16% Una Cap Ln Stk 
2002/07 - £134% 5% 

Btedan Group PLC 745p (Nat) Cnv Rad Prf 
25p - 92% CJ7JyS4) 

Barton Group PLC 305% Cum Prf Cl - 4S% 
( 22 Jy»r) 

Barton Group PLC 112Sp Cun Red Prf 
2005 Idp - 107% (27JyS4 
Stefnga PLC 8% Cum 2nd Prf Cl - 96% 
C27Jy94) 

Btetoga PLC 9%% Non-CUn Prf Cl - 114% 

Bteirate Ex ploration Id Ort ROOT -37 
P7Jy«4) 

Brarow Hepburn Group PLC 7.75% Cum Prf 
Cl -9t (2SJy94) 

Boss PLC At» (2:1) - $17 (2SJy9d 
Bos PLC 10%N Deb Stk 2016-011% 

Bass PLC 4%% Uns Ln Stk 92/97 - £90$ 
Beae PLC 7%% Ura Ln SO? 92ril7 -537% 
Bara kimetments PLC 7%% Ura Ln Stk 92/ 
97- £9612$ 

Badeyn PLC 10% Cun Prt Cl - ii5(Z7jyS4) 
Belway PLC 05% Cum Red Prf 2014£i . 
112 (28Jy94) 

Bragesen d-y AS *B* Non vtg Sts W25 - 
NK172% 

Bkmtoglwm Mdshfras BukCng Soc 9%% 
Perm Int Bearing Sha £1000 - £85% 6% 
Sue Otto Industries PLC AOR (1:1) -54^5 
Bbte Ckcte Indi an tea PLC 5%% 2nd Deb Stk 
1984/2009 - E73 (2SJy04) 

Boots Co PLC AOR (2:1) - S1B0 
Bradford 4 Bln^ey Bidding SoaetyilS% 
perm tot Searing Shs HOOOO • £112% 
Bradford 4 Bmqkry BUBUng Scciety13% 

Perm M BeeUrg She £10000 • £123% 
Bradtad Property Trust PLC 10%% Cun Prf 
£1 - 124 7 3D IZ7Jy94) 

Oent Wefker Gnnm PLC VVts to Sub for Ore 
-1(27jy9q 

Brert Wteker Group PLC Var Rte 2nd Cnv 
Rad Prf 2OC0/2007 £l - 8 (2SJy94) 

Brant Wofar Groim PLC 80% 3rd Non-Cum 
Cm Rad 2007/10 Cl - 2% (27Jyfl4) 

Bristol Water Hdgs PLC 6 75% Cun Cnv 
Red Prf 1998 Sha El - 187 
Bristol 4 West Buldtog Society 13%% Perm 
int Basing Sts £1000 > £123% % % 4% 

% 5% 

Britmwo Bidding Society 13% Perm tat 
Bearing Sts £1000 - £121% % 

Bnten Airways PLC AOR (10:1) - S65 
British Alcan AksiMan PLC 10%% Dob Ssk 

2011 - £103 (26Jy94| 

ftttbh-Amancan Tobacco Co Ld 5% Cun Prf 
Stk £1 - 53 |2SJyS4) 

Brittsn-Aimrican Tobacco Co Ld 6% 2nd 
Cum mstk£1 -63 

British PoUcteun Co PLC 8% Cum 1st Prf El 
- 78% (Z7Jy9*> 

British Petrateum Co PLC 9% Cum 2nd Prf 
£1 - 88 (2SJy94) 

British Steel PLC AOR ( 10 : 1 ) - 523.64 .55 .7 
.71 % 02 

British Sugar PLC 10%% Red Dob Stk 2013 
.£113% 

Brteton Estate PLC 900% 1st Mlg Deb Stk 
2026- £100 %$ 

Brteton Estate PLC 10%% la Mtg Deb Sdc 
2012- £112% (26Jy94) 

Brteton Estate PLC 11.75% la MtgDebStk 


2018 - £121% (27Jy94) 
>w Uns U 


Bund PLC 7% Cm Ura Lrt Sdi 95/97 - E703 
Bramah Caslml PLC 7%% Cun Art Prf £1 - 
70 

Burton Grata PLC 8% Cm Una Ln Stk 1996/ 
2001 -684 

Capital 4 Counties PLC 8%% la Mrg Deb 


Stk 95/2000 - 688 (Z7Jy94) 
Bara PLC < 


Cation Commu nfcabara PLC AOR p:i) - 
S27A6755 8 (2SJy94) 

Carton CommuecatoRs PLC 7%% Cm 
Subrad Bds 2007[Rag CSOOQ - £137% 
Camarttora PU3 Wte to tar Ort - 27 
<2SJy94) 

Centex Corporation Shs of Com S8c SQ25 - 
SZ4028 (22Jy94) 

Cheltenham 4 Gtouceatar Add Soc 11 %% 
Pam Int BeaUtg Shi £50000 - £1 15% 6 
35Jy04) 

Cty STM Estates PLC 525% Cm Cun Red 
Prf El -80 (22Jy94) 

Ctevetend Plaoe Hok&tgs PLC 12%% Red 
Deb Stk 2006 - £123% (£7Jy94| 

CaaeW Corporatio n Shs of Com Stk $003 1/ 
3 - $31055* %<> 

Coas Petone PLC 4%% Ltaa Ln SHc 2002/07 
-E84 

Crate Patera PLC 8%% ItoS Ln Stk 20020)7 
-£79£7JyS4) 

Coae vtyela PLC 40% Cun Prl £l - 87 
C22Jy94) 

Craranerctei UNon PLC 30% Cran Red Pit 
£1 -Q5p7Jy84) 

CommercU Union PLC 8%% Cun tad Prf 
£1 - 104% 5 % % 

Commercial Union PLC 8%% Cum tad Prf 
£1-105% 

Co-Operative Bank PLC90fi% Non-Cum tad 
Prf Cl -110% % • 

Cooper (Fredericto RC 60p (N«8 Cm Red 
Cran Ptu Prf lOp - 91% 2 

CoraUUds PLC 6% Cran MPMCI-51 

(2SJy94) 

Courttedete PLC S%% Uns Ln Ste 94/96 - 

£86% 

Cowteufde PLC 7%% ura Ln 8tk 2QQ0A)5 - 


Coventry ftddng Sodety 12%% Perm Intar- 
est Bearing She E1000 - £113% 4 
Oafy Mas 4 Genera Trura PLC Ore sop - 

em 

fSeigety PLC 4.85% Cran Prf £1 - 70 (28jy9^ 
Debenftams PLC 7%% Ura Ln Stk 20Q2AT7 - 
£83%(27Jyft4) 

Debertiamn PLC 7%% Uns Ln Stk 2002A77 - 


£83% £SJy9<) 
LC 10%% 


(Mte PLC 10%% Deb Stk 95/89 - £102% 
(28Jy04> 

Oancraa PLC 605% Cum Cm Red Prf £1 - 
108% (287y94) 

De rate r* &ou> PLC 3.75% Cran Prl £1 - 
10 Sp 2 Jy 94 ) 

Dewhurat PLC Old lOp - 70 5 (28Jy94) 
Dominion Energy PLC Ord Sp - 1 1 (2SJy94) 
Dover Corp Com Stk SI - SS8% (27Jy94) 
Dunlop PfaitaOona Ld 8% Cran Prt £1 -82 
CuJua l artcd taeuanoe Office PLC10% Red 
2nd CUm Pit £t - 108 12 4 (27Jy04) 
□ a cti o n House PLC 70% Cm Cun Red Prt 
£1 -108 

ByeQNMieMPUCOrt2ap-£4%t 
EmesS PLC &25p(NsQ Cm Cun Red Prf 5p 
-86 


10 - SK397038 8 % 9 400 1 2 3 

34 4 % 

Essm and Suftaft Water PLC 10%% Deb S6< 
34/96 - £100% <27Jy04) 

Esarn and Surielk Wtoor PLC 1100% Red 
Dab Stk 2005/09 - £125% P7Jy94) 

Euu Disney 3.CA Shs FRS (Depoortory 
Receipts) - $10 p 118 8 9 22 3 45 
Erao Dtenay SJ3A She FRS (Br) - SI 0523 
FR907OS .9 3 01 05 35 07 07 10 10 
1002 245 

Eraorunrwl F\jC/Era«umef SA Unite (1 B\C 
Oid40p&1 KA FRIO) (Br) - FR3404 
2401 (25Jy941 

Buroumnoi WjC/Eraat ra mei SA Urda 
^JMwam Wtecrtoed) - FR25 SA M 45 48 

&IOMMI nC/Eraotunnei SA Frxt 
WteriB>LC & 1 ESA WrttoSub ftxUnit^ - 
£18520 

Euratravid PLC/Eraoturrai SA Fndr Wta 
(Stcovam hsotoad) - a>.i3 ^2Jy94) 

Ewart PlC 8%% Uns Ln Stk 9Q/9B - £90 
P7Jy94 

Ek-Lands PLC Warrants to cub ter Sra - 23% 
(27jy94) 

Excaaour Group PLC 110% Cum Prf Cl - 
105 (?7Jy94) 

Extioratton Co PLC Ord Srk 5p - 305 

C22Jy94) 

Rl Group PLC 7.7% Cnv CUm Rad Prt 95^9 
£1 - 105 (Z8Jy94) 

Falcon Hatotags PLC Ord Sp - 128 (22Jy94) 
Rrat CMcego Crap Cam 3te $5 - $49% 
PTJM 

Fbst ttetkmd Butetuig Sodety 11%% Perm 
tat Beering Shs £10000 - £100% 05 
Fket National Ftameo Corp PLC 7% Cm 
Cum Red M £1 - 128 (27Jy94) 

Five Arrawa tat Ranevee Ld PigRedPrf 
80.01 (DeutachemariiMenagedBh^ • 


DM91475 p7Jy94) 

p PUCQcdSp - 40 


FoCces Group I 

Forte PLC 9.1% Uns Ln Stk 05/2000 - £99 
101 

FrMrtGy Hotab PLC 7% Cm Cum Red Pm £1 
-01 (22Jy94) 

QKN PLC ADR H:1) - $908 p7Jy94| 

GN Gr«M NonSc U Sha DK100 - DK589 70 

C-T. enu Grow* Find Ld Od $001 - 
SB7%* 

Grawol Aoddeni PLC 7%% Cum tad Bf £1 
- QB~V 

Grand Accident PLC B%% CUn tad Pit £1 
■ 106% 7 

Gerard Etadric Co PLC ADR (1=1) - $445 

(?7jy»S 

Gtebs « Draxty PLC Ort lOp - 8S 

Otexo Group Ld 7%% Ura Hi SOt S5« SDp 
-48%(Z5Jy94) 

Qobel Stodr hvostmems Ld Pig Red Prf 
SO0l[UKHlghfncranePertIa4o) - 483.8^ 


Gtynwotf tatemasanal BX 10%% Ufa In S9c 
94/99 - £101 

Grand MetrepcUtafl PLC 5% CUn Prf Cl - 
54l 2 (2BJy94J 

Grand Metrepottta PLC 6%% Cum Prf £1 - 
6Cp5Jy94) 

Graa Unveruf Straws PLC ADR fl:1] - £9.1 
Grewsfla Group PLC S% Cum Prf £1 - 104 
G6Jy94) 

Greendta Gnu PLC 11%% Deb S» 20M . 
£1210 % BSJy94) 

CreeraBs Group RJC 9%% tad Ura Ln Stk ■ 
£37%{HJy94) 

GraeraSs Group PLC 7% Cm Steord Bds 
2003 (Retf - 009* 

Greenale Group nC 7% Cm SutxM Bds 
2003 (Br) - £107 (2Wy94) 

Greencnre Group PLC 90% Cnv Una Ln Stk 
1395 - IC140 0&fy94) 

Gonness PLC ADR (5:1) - S3301 (2SJy9«) 
Gusmess FUgm OobW Strategy Fd Pig Red 
Prf SO01(Sobal High tag Bo Fd) - $2101 
G2JyS4) 

HSBC Hdgs PLC Old $H10 (Hang Kong 
R6«8 -SH91 00824 089007 205572 .1 .1 
011335 086837 08694 44388 474 % 0 

.7 .7 % .789618 .85 089425 
HSaC Hdgs 1 109% Subrad Bee 20C2 
(Reg) -£109 

HSBC Hkigs PLC 11.68% Subrad Bds 2002 
(Sr£Vad-£112# 

HaHn Butettag Society 8%% Penn tat Bera- 
te SB CSOOOO - 6870 % G7Jy94) 

HaBta* Budding SoCefy 12% Perm tat Beer- 
mg She £l (Reg OOOOG) - £119>4 % 
C!8Jy94) 

Haflen Hokttags PLC Ore 5p - 62 
Han Engtoeertagp-fttigs/PLC 505% Cum Prf 
El -701 p6Jy94) 

Han vne rsrai PLC Ort 2Sp - 347 50 2 .18 8 
Hardys & Hansons PLC Ord 5p - 247 52 
Hadamare C rt a tea PLC 10%% la Me Oes 
Stk 2018 - £107% (Z7jy94) 

HercUes tac Sha of Com S0( of NPV - 
$106% (2SJy94) 

Kckaen ta te ma to ral PLC 8%% Uns Ln Stk 
89/94 - £98 05Jy94) 

HD Senuol tate met tonel Bond FratoLd Pd) 
Red Prf SO-OHSOg Managed Shsl - £1102 
(ZSJy94) 

Hctmes Protect i on Group tac Shs of Com Stk 
8X25 - 279 

Housing financ e Corporation Ld 11%% Dab 
Srk 2016 - C1UA (Z7Jy94) 

IS Himalayan Fund NV Old FLO01 - 516023 
16% 19B 06Jy94) 

Icerand Group PLC Cm Cum Red Prf 20p - 
123% 4 

Hangwmthjutorrts Ld 6%% Cun Prf Stk £1 - 
52 (22494) 

nmgwarthjrioms Ld 8%% Cum 2nd Prf 5tk 
61 - 52 (22Jy94) 

taOrthial Central Services Grp PLCOre iCp - 
135 7 

I ml Stock Exchange ft UK&Rep of aid 7%% 
Mtg Deb Sbc 90/95 • £99% (Z7Jy94) 
tan Stock Exchange of UKSRep of lrl0%% 
Mfg Deb Slk 2016 - £107% (26Jy94) 

Irish Lde PIC Ord litO.IO- BM09 1085 2 P 
196 

Janftw Matheson HWgs Ld Ord SS12S IHeng 
Kong Regreen - 6508 542 Stf3075D1 
4.048796 06432 015352 .73155 06 5.19 
07 018487 019043 

JanSra Strategic t«dgs Ld Ord SO 05 Mang 
Kong Regetra) ■ SH29401 071643 
Johracn Group Oeeners PLC 70p fNet) Cm 
Cran Red Prf 1 0p - 1 3a 43 
Jorrwtc n Group PLC 10% Cum PM £1 - 105 
Jones&roudpSdGsl PLC 10% Cun Prf £1 • 
130 (27jy94) 

Jupter Tyndafl tat Fund Ld Deartbieon 
Shares Ip - 461 (26Jy94) 

Keravng Motor Group PLC 3.35% frrfy 
5%%) Cum Prf £1 - 58 |27JyS4) 

Wngflsher PLC ADR (£1) - S15 65 
Korea-Europe Fund Ld ShsflDR to Br) S3. 10 
(Cpn 7) • 64082 % 4085 (27Jy94) 

Kvaemer AS. Free A Shs NK120O - fW3T4 
Ladbrcka Group PLC ADR (11) - $209 2.7 
Land Secumes PLC 9% la f4tg Deb Stk 9&' 
2001 - £102% 

LASMO PLC 10%% Deb Slk 2009 - £105% 
(26Jy94) 

Leeds A Kcibeek Bu4djig Sooety 13%% 

Pram hit Bearing Sra £1000 - £123% % 4 

Leeds Pon ra ra nt Bukkng Sooety 13%% 
Pram tat Bearing CSOOOO • £130% 

Lewtst JohnJPannersIvp PLC 5% Cum Prf Stic 
£1 -53 I22jy94) 

Lombard North Centra/ PLC 5% Cran aid Prf 
£1 - 50 |2SJy94) 

London In temaBoral Group A.C ADR (5.1) * 
5604 (26Jy94j 

London Secrames PlC Ord ip - 3% (27Jy9«) 
Lonriio PLC ADR (1:1) - 5206 09 
UwrfWm) & Co PLC 6.75% Cum Cnv Rad Prf 


£1 - 133 48 7 % a 07 % % 9 % 07 50 1 
! 4 5 % 8 


08 3 % % 

MEPC PLC 9%K ia Mrg Deb Stk 97/2002 
£103 06Jy94) 

MEPC PLC B% Urn Ln Stk 2000105 - £93% 
(Z7jy94) 

MB’C PLC 10%% Urm Ln SB( 2032 - £105% 

0 

McCarthy 8 Straw PLC 175% Cran Red Prf 
2003 £1 -87 

McCarthy & Stone PLC 7% Cm Lira Ln Stk 
99/04- £89 

Mctaemey Properties PLC ’A' Od CrflJI.IQ - 
HU055 (28Jy94) 

Mandartn Oriental In t ernational Ld Ord 5005 
(Haig Kong Rog) - SH1II0O8431 (27Jy94) 
Maria & Spencer PLC ADR (8:1)- S4O0 
Mratewte PLC 10% Cran Prt £1 . 113 
(22Jy94) 

Medere PLC ADR (4.-1) - SB% 

Mercfisnt Ratal Group PLC B%% Cm Lka 
Ln Stk gg/o« - £62 (2SJy94) 

Mersey Docks & Hrabow Co S%% Red Oeb 
Stk B4/B7 - £05% (7/JyS4) 

M oray Docks 0 Hratrour Co 3%% tad Deb 
Sta-635 

Mkfland Bank PLC 14% Subord Uns Ln Stk 
2002/07 - 2124% p7Jy»4) 

Wnstragato PLC 10% Cum Prf £1 - 110 
C2SJy94) 

Morgan CrucUe Co PLC 30% Cum 2nd Prf 
£1 - 55 (22Jy94) 

NFC PLC 7%W Cm Bds 2007flRed - £95% 
Nattarwl Power PLC ADR flfcl) - 888% 680 
(27J»G4) 

NaBoraf We otateram Bank PLC 12%% 
Subord Uns Ln Stk 2004 - £1 17% 
N e w cas tle Bidding sodety 12%% Pram 
Interest Bearing She £1000 - £117% 8 
eSUy9*) 

North of Endend BrASno Sodety 12%% 
Perm Int Beratag (£1000)- £117% 8 % 9% 
North Surrey Water Ld 5%% Deb Stk - £53% 
P $ O Property Hddngs Ld 8% Ura Ln SMr 
97/99 ■ 690 pSJyW) 

Pacific Gas & Bactrtc Co She of Com Slk $5 
-$23%CSJy84) 

Paridand Group PLC Od 2Sp - 187% 90 1 
Paterson Zochonb PLC 7%% Cran Rl £1 - 
06 C26Jy94) 

Paterocn Zbchorts PLC 10% Cum Prf £1 - 
118 (27Jy84) 

Peal Hdgs PLC 10% Cran Prf 30p • 55 
_C2SJy94) 


el Mcfas PLC 8%% la Mlg Deb Slk 2011 
-6100% ( 


Pad Huge PL§&25% (NeQ Cnv Cun Nort- 
Vtg Prl 61 - 100 (27Jy94) 

Peel South East Ld 10% Id Utg Dab Stk 
2028 - £100% (2BJ/94) 

Pratora Foods PLC apOtefi Cum Cm Red Prf 
lOp -81 

PatrdtoaSA. Ort Shs NPV (Brin Denom 10 
8 10) - BF960O 10225 89.1 300 
Ptoads PLC 9%% Cum Prf Cl - BE (Z7Jy94) 
Rent sb rodc Group F1C 8.75% Cnv Rf 91/ 
2001 10p-82(22Jy94) 
P ra b e n t) ulh 88 uida rfa nd Now spa - 
peraPLC 110 % 2 nd Cun Rf 81 - 183 
payu) 

Potgtetarsrua Rataumi Ld Ord RO02S - 485 

P7JyS4) 

PoweiGan PLC ADR (10r1) - $79,78 
Premier HeaWt Gnxa PLC Ort Ip - 2 
Praasao HokSngeFAC 100% Cum Prf £1 - 
112 

Quarto Group he &75(KNad CnvCumRadShs 
of PM Stk S0.10 - 183 (?7Jy94) 

RPH Ld 0% Ura Ln Sdc 99/2004 - 690 4 
JZ8Jy94) 

ftacal Bedrorice PLC ADR fc1) - $7% 

Rank Orgraitsaton PLC ADR ( 2 : 1 ) - S1Z74 
Rood tata ra flaral PLC 30% (Frrfy 5%) Cun 
Prf £1 - 54 P7Jy«4) 

Regent Corporation PLC 8% Cum Prf £1 -45 
(27.1*94) 

Repubte OddTWds Inc Sra of NW - SC3J 
P6JV9A 

RoOs-ftoy» Power Engineering PLC 5075% 
Cun Prf £1 - 86 % p7Jy94J 

I Bank of Scotland Group PLC 5% % 
iPrfCI -XftSJfiq 
Royal Baite tf Bedtand wup PLC 11 % 

Cum Rf £1 - 112 3 (28/y94) 
floyte tamee Horotogs PLC 7%% Cm 
Subort Bda 2007 (Br £ Var) - C10S% 
(Z2Jy94) 

Rugby Group PLC 8% Urn Ln Stk 83/98 - 
CB9%p7Jy94) 

SCEcorp 31% gf Com Slk of NPV - S13 
(28Jy94) 

SaateN 8 Saatchf Co PLC ADR ftl) - S 6 % 
F8Jy94) 

Scaraontc r«ge PLC 725p PM) Cm Cun 
Red Prf 20p- 60 81 

Scraiteortc Hldga PLC 5.75% Cnv Cran Rad 
Rf £1 - S38£6Jy94) 

ScneU PLC 5%% Cnv Cran Red Prf 2Q08/1 1 

£1-82 pSJy94] 

Scodtei 4 Hew carte PLC 6426% Cum Prt 

£1 - * 6 % psjy 94 ) 

Scottteh a Hewcaette PLC 7% Cm Cran Rf 
£1 - 240psjy94) 

Seore PLC 40% [FnVy 7%) 'A* Cran Prt Cl - 


Royal B 

Cran I 


Seas PLC 7%% Ura Lri Stk 02J07 - £98% 
CflJy94) 

Sovran Rver Cro ssi n g PLC 8% tadex-Ltaked 
Dsb Stk 2012 16044%) - £115 
Shel TransporlATradngCo PLC Old Shs (BO 
25p ICpn 193 - 730$ 

SNekJ Group PLC Orel 6p - 7 
Shoprite Ftaanse (UK) PLC 707Sp84e8 Cun 
Rad Prf Sha 2008 - 47% 

Sldaw Group PLC 7%% Uns Ln 9lk Z003/D8 
- 682% B7Jy9*} 

Sknon Engineering RJC 7.75% Cun Red Prf 
92/OT El - Sa (27Jy94) 

600 Group PLC 11% Uns Ln Slk 82/97 - 
£100 

Srfcrton BUkraig Society 12%% Pram Int 

- -- veii7%* 


Bearing Site 61000 - 


% 8 %% 8 % 


Smdh New Cara: PLC 12% Subrad Ura In 
Slk 2001 - EMCJ 

SmrihSutebirrMassi PLC 9 *i% Can Sra 
PrfCl.lCoaSr.YMl 

Srtn »VfKl Group PLC 5%% Cum Prf Cl - 

87(27vVM 

Smrt C.VJti Grow PLC 5%% Red Ura Ui 
Ste-ESO 

S-T-mcra Seaeute PLC ACR i5.li - $31% 


SrosMgne O eec h s m PLCSirreitcne ADR 
10:1) - $27099067 8 % % 

Stag Franfture nags PLC 11% Curft Rf £1 - 
ICS (22J*j04) 

Standart Chratraed PLC I2's% Subcrt Ura 
UiSta200aur-C1T4: 2 
Stoddard Sekere tax e rntfe r a PLC 4% Cran 
Prf £1 - SO 1 C8Jy9<t 
SwsMJcttV 5 Sens PLC Crt 25p * 425 
Syraenes Esgrar.-; plc Ore £p - 33 
TAN PLC 11%% Utg DabSte 95.2CC0 - 
CIO* C27J)94) 

THFC (frsseated) Ld 505% t»Sex-U**d Sb. 

20206076%) - £123 25JyS4) 

TSS Grom PLC 1C%% Subcrd Ln Stk 2008 
-£10 7?t 

TS3 (text* tav Prc LC Pig Red Frt TSfUK 
Ecuay Cwa -3CLSS* 

Tate 5 Lyra PLC 9% Ura Ln Ste 5.3C3CB - 
EfiS ff7Jy94) 

Tara 1 Lrfe PLC 10%% Ura Ln Stk 2C0S08 
• C132 C27jy9*t 

Teytor Woodrow PLC 9%% la mi; Dos Stk 
2014 . £59% (27JySC) 

Tosco PLC ADR (in; - S3. 76 r26Jyd4) 

Tosco PLCMUrs Dees Crsc Ln S* 2006 - 
£B4%(22Jy«; 

Tte Devetccnraro Cased R re Ld Ord SO.tC 
- S10 C22Jy9*l 

Thai DteWocmerr CattoTO Fund Ld Wta To 
Sub Fer Ort - $1 -2-YK) 

Tfc a 2 a. Td ITOemaecr^ Prart Ld Shs $001 
(TCWo te BH - $31250 

THORN BC PLC ADS (1:1) ■ 51609 C7J/94) 
Ttm vwMye Water PLC 4% tac Deo Stk - 
628 

Toronto Grey $ Bruce Railway Co 4% tra 
M3 Bss 5383; iCsn 221) - £45 (2SVW | 
Town Sartre Seesrees PLC 1C%% la Mtg 
Deb &k JS21 - £109 .*Jy94} 

Tntefgar Horara PLC 7% Ura Cob Stk Cl - 
75 CZSJyS* 

T tairfja Hcute PLC 9%% Ura L-n Stk 2C0Gr 
OS - £37 C27Jy94* 

Tndator Hcuse PLC 1C%% Urs Ln Stk 
2G01.TG - £100 (<5J»94' 

TransaSarac HcKLigs PLC A Cnv Prf SQp - 
E30{2SJy»f; 

Tf Kt Wc Hetcmgs PLC B 6% Cnv Rf £1 
•94 

Transport Dmoktorrart Group PLC •*.?% 
Cwr Prt £1 -ea 

Trarapcrt Devratcnrar; Group PLC 8%% 

Ura Ln Slk 93.98 • £28 28^/94; 

Ucgate PLC ACR (1:1; - $56 37jy04> 
Limgate rLC 6%% Ura Ln Stk 91/90 - £3e<f 
Lngate PLC (%^ Ura Ln SSt 9297 - £33% 
CSJySJl 

U.-0MOT PLC ADR M-1J - £106 1 1 
Urosr. L -ar- j s e ra > Ce PLC 6% Cure Prf Ste 
£1 - 48% CSJy9J: 

Unsys Corp Car SZa SC0 1 • $8% f?6Jy94i 
LftLty Crtn PLC W an ana a eus tor Ore - 
I7 06jy»q 

Value 6 i.raerra Truss PLC W an arra 3A04 a 
sa tor Cre ■ 52 B8»>9«J 
Veu> Group PLC 11%% Oeb Sta 20 10 - 
£1 19 .27-, 941 

VcKn PLC Ptt 5% StefNavCunt - £47 
(267/941 

Vekras PLC 5% CumfToi Free To COpIPrf 
Sa Cl ■ £5 OSJy941 
Vsdntone Group PLC ACRnftll - 
$26043065 % % .14 .19906 % % 09 % % 
Wager teeustod Kdgs PLC 7050 (Nell Cnv 
Rg Prf ICp - 146% 

V/OtaenJ.O; 6 Co PLC Crt 2Sa - 330 
GSJy94j 

WxkerfThomxu PLC Cre 5o • 27 !25Jy94) 
MWoeme PLC ADR I1:1| - S9% 

Wamteey PLC 60 INaOCrv Cran Red Prf 1999 
£1-52 

WhSreed PLC 7% 3rd Cum Prf Stk £1 - 75 
i2Wr*) 

Wtvtereed PLC 7%% urj u> S Dt 9599 - £32 
3C8Jy94) 


WMbnud PLC 7^ Ura Ln Stk B6T300 - 
£33% C7JyM) 

Whscreod PLC 10%% Ura Ln Slk 2C0GTC - 
£105% % (2"Jy94) 

Wfutecroft PLC 5. t % Cum Prf Cl - 58 
wautata Hdga PLC 10 %% Cran Prf Cl • 128 
32 (27Jv94) 

wars Conoco Group PLC ADR O-D - 
51 a 749842 

W utvun emp tonS Dudtoy Bi n w enos PLCfl% 
Cum PrfiPtgt Cl - £8 73 
Xerov Corp Com Sra Si ■ $101% pSJyU) 
York Wabwvreria PLC Ort 100 - 270 
Vgitoitwo-Tyra Toaa TV Hdgs PLC Wt» to 
sub lor Ord - 182 

2ombta ConsoBdatod Copper M«m» ld*B* 
Ord MO ■ COS 


SocuWra Trva of Scotland P-C 12% Dab 
Stk 2013 - E12S C6J»94J 
ShMe High-Yroldmg Sn* Go's TstWta to 
Sub far ftd - 77% C?Jy94) 

Updown tavra m rant Co PLC Ore 25o - 5BS 
KJ»94) 

VWamom Preoerty tavreewm Tsf PLCWta to 

Sub ter Ore - 39 (2?jy94) 

Wian tnwtnwnt Ce PLC 8% Deb Stk 9fW9 
• E»C7Jy94) 


USM Appendix 


Investment Trusts 


Abtrua New Cent tav Trust PLC C Sha 50p 
• 239 40 1 C7JyfX) 

ABanco Trua PLC *%Au Prt Stk Cran) - C45 

C7JyS*i 

Balw Gifford Japan Truat PLC Wta to Sub 

ore sra • 174 s 

Bjrtng Tribune taireameM Trust PLC9%% 
Oob Stk 2012 - £99 

BJioramcraa taveameres Trust PLC wta to 
sub ter Ord - 27% C8JrfH> 

Bnbsh Assoo Trust PLC BauitMs tadra ULS 
2305 IDp - 155 7 <27Jy94) 
aursh mvaamere Treat PLC 11.12S9* 
Seared Deb Stk 20>2 - 61 19% l2SJy9fl 
C.S.C.imestment Trust PlC Ort 2Sp - 96 
C6Jy04) 

CteU Gearing Trust PLC Ord 25p - 450 
G7jy94l 

Ounodrt income Growth tav T« PLC 3%% 
Cum Prt Slk - £57 fSUyW) 

Edtaburgh taveamen: Trua PLC 305% Cum 
Pfd Stk - £54 

Roeety European Vakiea PLC Equity Linked 
Uns Ln Stk 2001 • 140% 
firaaray Growth Trua PLC 5% INer) Cran Prt 
£1 - 74% (27Jy94) 

firabray SmaSar Co's Trua PLC Zero On Prf 
25p - 191 2% 

Flaming CUverfiause hv Trust PLC 11% Deb 
Stk 2008- £113% (27Jy«) 

G eii i r we British tac & Grib TW PLCZero Dwt- 
dand Prf 1 0p - 103% 

Gartmoro Sherod Gjuty Trua PLC Graved 
Crt wc 10p- 107% 

Gov on Straagrc Inv Trua PLC 9^% Deb Stk 
2017 - CtOSilt C6Jv94) 

Govett Strategic tav Trua PLC 10%% Oeb 
Stk 2018 - £113% P2jy«4» 

Govott Strategic tav Trust PLC 11%% Deb 
Stk 2014 - £123 (22Jr94| 

HTR Japanese Smaiw Co's Trua PLCOrd 
25p - 1 13% 4 4 5 5 % 6 
Hotacur Investments PLC Ord £1 - 395 
(22JV94) 

i .l.-.v n seiea taveetment Trua Ld Ptg Aed 
Prf C ip Oobal Actoc Fund * £1335 13 37 
C2Jy9*l 

Latent Seiea Investment Trua Ld Ptg Red 
Prf a ID UX Acme Fund - £14.05 
Lourd Saiea Investment Trua Ld Pig Red 
Prf 0 ip UX LiCtrad Assets Fuat - £10 
(22Jy94i 

London 8 St Lawrence I n v es t m ent PLCOre 
Sp-157 


Ownted* CM Group PLC ACR (1:20) • 
SBJKCrjyfrl) 

Ortota Group PLC Ord 6*025 - K0.15 

GWy&fl 

Bdoa PLCOrt 10S-37Q (27JyM 
FBD Htadtags PLC Or! UDUO • ff10S 
C=Uy94) 

CStoe Mew PLC CM 2SP - 408 
LWSteW 6 Scots** Resources PLC Ore IOC 
3% 

Reta Greta PLC Od HOAS • KOJB 
Total Systems PLC Ort Sp • 28 (2SJy«4 


Rule 4.2(a) 


Monks taveamom Trua PLC H% Deo Stk 
2012 - £115*34 

MorganGnmWKJiBfiAmerCo's TM PLCWta to 
sub tor Onl -41 ? 

Murrey Intantattcna! Trwll PLC 30% Cum Prf 
£1-56 

New Guernsey Socurmes Trua Ld Ort 2Sp - 
107 

Northern tnrfust knprov Trust PLC Ord Cl - 
527 (27J»9d 

Partus French taveament Trust PLCSras *A* 
Warrants to sub for Od - 31% P6Jy9*) 

Potato French I n v es l inun Trust PLCSeas 
*B‘ Warrants to sub for (M • 27 C7Jy94) 

Schroder Korea Fund PLC Ord $0.01 (Br) - 

$15% P5JV9R 

Scottish Investment Trua PLC 3.5% Cran 
Ptd Slk - £55% (22Jy94) 

Scortrsn invostment Trua PLC 405% CUm 
-A’PrfStk-C67(26Iy94) 

Scottish National Trust PLC 10% Deb Stk 
2011 -Et05C6Jv94) 


M England Lawn Trams Ground Ld Oeb 91/ 
95 £2000 * £6500 C7Jy94) 

Amrioemeted Mael Corp PLC Ord £1 - £1% 
105(2OJy»R 

ami Stmt B rewery Co Ld Od £1 - ttA 3% 
Aim Sbert Brewery Co Ld Cm Red 2nd firf 
£> - 68% (26Jy94) 

Araenel FootbeB Club PLC Ord Cl • £450 4® 
47S 

Ascot Mags PLC vra Rae Cm Cum Rea Prf 
iao-caa&54 

Aston VBa FootbeO Ctab F’LC Ore 65(1 vuorf 
-£8S(27Jy94) 

Asrae Group PLC Ord 10p - SQ.145 Q0Jy84) 
0.15 p2Jy94) 

Borcteys tnveeBnent Fund(CL) Stwttag Bd Fd 
- CQASaOtM (25Jy94) 

BMm taduaaet Group PLC ore Ip • a 12 
C7Jy9<) 

CaBrawm PIC Ore 5p • Eai? (35Jy94) 
Crmmram PUCOrd Ip- Cats (S7Jy94) 
Chuch iCharteet Group PLC A Ord Ip - 
CD. 02 C2JyM) 

Cmnoy Gardrara PLC Ore 2Sp - CO08 
Cducs Oobta Fund UK Equity FUnd - C11.D2 

C6Jy94) 

D.B0. Management R.C QTO lOp • C20 
P6JV94) 

OerfVaiey Light RaiwwyLd Ord £1 -C205 
P5jy»4) 

Dawson KWgs PLC Ord lOp - £40 40 
De Gnichy (Abraham) Go Lid Ord 20s- £10 
1% OSJyM 

EW* 1H.) PLC 70% (Not) Cm Cum Red Prf 
Cl - Cl 005 1025 103(2SJy94) 

Engkah Oneuhes Houstag Group Ld 2%% 

Ui SO. - Cl 2 pTJyM) 

Everfon Footbdi Club Co Ld Ore S« Cl - 
£2400 R7Jy94) 

Foacaa Browdcaa Corpmnon PlC Ord 5p - 
0L42 

Cale «Geoig4 & Co Li Old Cl - DB 
Gander Hetdtags PLC Ord Ip • CD 08 
Gibbons (StarterfMdgs PLC Ore 26p - CO02 
O03p7Jy94) 

Guffon Group Ld Ore lOp - £146 (26Jy94 
Hrebame Tenants ut Ord Cl - £1.4 
Hydes'Am* Brewery Ld 'B' Ord Cl • 680$ 
t E S Grora> PLC ore lOp - C30 C7Jy94) 

Just Grotto PLC Ore Ip - G0D3 (76Jy94) 
Mamwrat BeneoNM Fraid Men mine umta 
Band Fd - C69SS C7Jy«4) 
lOoetwart BensonttaO Fund Man KB G8 Find 
-C1308t 

Ktomwort Beroonfht) Fund Man M Equity 
Orth tac - C2.777«{> 

Umcosttee Enterprises PLC Ord Sp - £1.48 
Le HUM'S Straw Ld Ord £1 - 6205 (27 Jy94) 
MaQQue ms e yHrfen d Gokf Fund tac Unto - 
C330O7 (22Jy94) 

Mramhesuv City Footoal Oub PLC &d Ci - 
CIS IS (26Jy94) 

Manx & Oversew PLC Ord Sp - CO -06 
(22Jy94) 

Marine 6 Mercantile Secuffias PLC Ore 
*€000 - 62.15 2.18 p&ly94) 

Maxim tavestments A Old Cl - £0.45 

(23Jy«) 


Mask MmmhmI Group Flfi Ore ip 

C0J2t25Jy*fl 

NUtow CMd Hk^e plc are top- £70(4 

Newbury Rkkmm R£ Ord EHO - fisisi 
crjyw) 

Nrawa Ptoperoeti PLC Ore Cl -1015 
P 2 JVW) 

Pan Andean Rnoucw PLC Qnt ip - toss 
CCUySR 

IterpeUfiJwwri OfWWro A«ar) Smeltar 
Mraketa • $1088{21JyM) 1.7 puy94) 
Wrap— fitrawgl Ottanoro Bwt gtag Co's ■ 
SB0SB3 Ctjjjs4) 

PvrpauraUmerf Olton F« Eeraom Oram 
Fd - £3064 P2Jy84) 304771 S3 1992 

I 

PrapearaHJerefy) OMme UK teetfi - 

$2.7588434 

R engera Foatoel Cteb PLC Ort IQp - £095 
Raiaen Footbel Qub PLC 8 Deb Sta Cl 30 

■ Cl 750 

Rangers Footbel Ctab PLC C Oeb Set Ci50 

■ Ci 550 (ZSJyfH) 

Saxon Hawk Group PLC Did £1 -£207 
(774)94) 

Soften Hotel Ld Ort £1 - C30 (2$jy«4) 
Select bekraftiee PLC Now (M 7%p i5p Prg 
-BUM* 

Shepherd Neeme Ld 'A* Ord n - 06% 
CSJyBO) 

Sbutn Green Mdge PLC Old tp - (90.0075 
(27JyM) 

Soutnom Newepw* PLC Ocd Cl - (Ml 5 
Sumy Free tone Ord SI - C0.49 
Sutton Hertnur Htoge Ld Ore 29p - Cl 3 
(2SJy94) 

ThwateefiTateM Co PLC CM 2Sp ■ £20 


H 


Hden 


F7Jy»4) 

Tfteghw PLC Ort 5p - CDJM (Mjy84) 
Tracker Network PLC Onl Cl ■ CIS 13 
IMP7-MA* PLC Ort 2Sp - C40 
Vtate Enta rtafcn w PLC Ord So - Ea0O75 

aoi 

Weddrabun Securttw PLC Ore 5p - Cai 
ai3(27Jy»4) 

weerat** Ld *«* NottV ore 25p - ti6%% 
WUntworth MwiMBand Ghtk^ R.C Ore Ip 






. ; i!*i*Ul 


60.02 

Wtoctrader MuU Medte PLC Ort Sp . 


CO054 


RULE 2.1 (o)M 

BxsalriB raarfcpd in MCtaWu (not 
faffing within Rut* 2.1 MAJwtio l» 
the pridprf martait la ootskl* the 
UC and Rapt*0c of Inland . 


> Expl A$1 .6169(28.7) 

Bate East AWa 274(27.7] 

Bate Kowen 135«(267) 

Beech Petroieran AfQ.l512g0.7) 

Batae Casoeae $24076^(28.7) 

CRy Deuetepmente SS8042a34K267) 
Cepe Range Oi 28(267) 

Centaur MMng AS0587338P67) 
Cudgrai RZ AS3088I22.7) 

Forest Lotte £?7%04205(25.7) 
fijturis Corp All 0321(22.7) 

IWaysla Akflne Sys HMB025P67) 
Muniy 6 Robtets HUpe 
FZB905^064O(267) 

Not Fud Goa Co S30%(22.7) 

04 Search 369(27.1) 

Patobora Mntag 6t2%(2S.7} 

Rotanaon 6 Co 386050074(27.7) 
SepphW Mime AS0.11B8*(25.7) 
Singapore Land 5570058(267) 

Variant Cans AS0.45*C267) 


ay rwinwuii rata# smcacroraagwcaraice 


RWANDA EMERGENCY APPEAL 


Save lives 


this weekend 


Rwanda is one of the world’s worst crises for a generation. Thousands are 
dying every day from hunger and disease. The Disasters Emergency 
Committee, acting on behalf of the UKs leading aid agencies, has 
declared this Sunday Britain’s Day for Rwanda. 


Between 10am and 5pm, courtesy of B.T., live phone lines will be open 
for donations with many of Britain’s celebrities answering calls. Corporate 
or individual donations are welcome. Corporate donors will be listed in a 
subsequent thank you advertisement in selected newspapers. 


Please ring: 


0345 222 333 


on 


Sunday 31st July. 10am -5pm. 


Or write to: Rwanda Emergency Appeal 
FO Box 999 London EG4A9AA 




lilts 

EMERGENCY 


-» ' s. I 


’*•6 n 

' •'A? 


•• >i 

'« i 


7 Se Ac tujr‘ 0 » All 


9HWW 

At 4 > 

1 % '1**l 1 


... ....... ,j_. 


" •■Cl 

' -rf ra . • i 


' F l 


1 1 !- 


i-r* 


• t -.r . 

» -.4 

■ 0 
rwi) !J 


^4. .. ' 


F 

' A , - J U ! 


«; “i 


.a 

" 13 '' 




COMMITTEE 


British Red Cross CSfO D Christian AidE] Help the Aged $XCAM SmedwaOdrenT 


N)Ou 


•"'•Hi* 




4c 


tUa ^U. 




■I V - 

M 
tu. 


sv* . 

' T-.- i - e 

"J V , -j 

'f 'sic- 

• “ ■"* ? * v x 


■ ra •:* 


l/i - r 





FINANCIAL. TIMES WEEKEND JULY 30/JULY 31 1994 


15 


MARKET REPORT 


LONDON STOCK EXCHANGE 


FT-SE-A Aft-Share index 


Sudden interest rate fear upsets confidence 


1.601 — 


By Terry Byland, 

UK Stock Market Editor 

The stock market had the wind 
taken oat of its sails yesterday by 
the turmoil in gilt-edged stocks 
which culminated in warning cries 
that the authorities planned a “pre- 
emptive strike" by raising base 
rates without waiting for inflation- 
ary pressures to force the decision 
on them. 

The fT-SE ioo Index was down by 
26.2 in late afternoon after the 
authorities had apparently con- 
doned a rise in UK Treasury bill 
rates to 5.75 per cent from the exist- 
ing L99 per cent rate. Such a move 
has traditionally been the warning 
for a base rate hike, but uncertainty 
still prevailed when markets closed 
in London. The Treasury .bill move 
was not the only factor disturbing 


TRADING VOLUME 


■ Mafor Stocks Yesterday 

VoL Closing 0*3 
000s prtce giro 


interest rate assumptions yesterday. 
But London was helped at the close 
by firmness in US Federal bonds 
after favourable news on US gross 
domestic product growth in the sec- 
ond quarter. 

The final reading put the FT-SE 
100 Index at 3,082.6 for a net loss on 
the day of 13 j points. Trading vol- 
ume was not particularly heavy and 
there were no signs of undue sell- 
ing. Most strategists continued to 
doubt whether the authorities 
intend to raise base rates in the 
short term, bat pointed to Wednes- 
day’s money market repurchase 
operation as the nearest indication 
of policy. 

By the end of the session, short- 
dated government bonds, the most 
closely linked to base rate expecta- 
tions, had fallen by nearly half a 
point Longer dates, however, ended 


an erratic day with gains of around 
!4 as investors took the view that 
an early increase In base rates 
would take the steam out of infla- 
tionary pressures. The late advance 
in long dated gilts proved do help to 
the equity sector, although a gain of 
23 Dow points in early trading on 
Wall Street did give some relief to a 
somewhat confused London stock 
market 

Equities opened formly, helped by 
the confident trend in utility stocks 
following the Ofwat price review of 
the water industry companies and 
by Thursday’s half time results 
from ICL 

Encouraged also by initial gains 
in stock index futures, the Footsie 
advanced by more than ll points. 
The banking sector turned easier, 
however, as interim results from 
Lloyds Bank failed to please the 


anal jab. 

But gains were soon reversed 
when by what appeared to be an 
unfortunate leak of the latest Brit- 
ish Purchasing Managers' Index, 
showing it at a record high of B 2 JZ 
per cent in July, the index itself 
was then published, a day earlier 
than expected. 

This whiff of inflation quickly hit 
bond prices and equities soon fol- 
lowed them downwards, with 
futures markets, as usual, setting 
the trend. From then on, the stock 
market remained in thrall to gi lts 
and to developments on the interest 
rate front 

A further cause for worry came 
when the market remembered that 
the Bank of En gland Quarterly Bul- 
letin is due on Wednesday and may 
well bring stronger comments on 
inflation prospects from the Bank. 


At last night’s close, the FT-SE 
100 Index was about one per cent 
down over the week, with yester- 
day’s fall contributing substantially 
to the week's loss of 32 points. Moat 
equity strategists, while accepting 
that base rates are likely to move 
up before the end of the year, had 
been doubtful that any early move 
was on the cards; however, yester- 
day’s developments may inspire 
some hurried rethinking of opin- 
ions. 

Equity trading volume has 
remained good, with retail or cus- 
tomer business worth £1.39 bn on 
Thursday. Seaq turnover reached 
507.8m shares yesterday, compared 
with 657m in the previous session. 
The FT-SE Mid 250 Index eased 2.6 
to 3.640.2 yesterday, with second 
line stocks providing 56 per cent of 
total market volume. 



Equity Shan* Traded 

Tumww toy '***!» (rr®* 4 . ExcfcKfciff 
MKHnaksi busmens and ovmeastunowr 
1.000 — 


Soma FT taplite 


1904 



■ Key Indicators 
tncBces and ratios 

FT-SE Md 250 3640.2 -2.60 

FT-SE- A 350 1557.7 -5.4 

FT-SE-A Att-Share 
FT-SE- A All-Share yield 
FT OnSnary index 
FT-SE-A Non Rns p/e 
FT-SE 100 Fut Sep 
10 yrGUt yield 
Long gitt/equlty ytd ratio: 2-27 (2-28) 


FT-SE IOO Index 

Closing index for Jul 29 3082.6 

Change over week -32.1 



- 4.86 

Jul M 3095.9 

303 

23880 

19.41 

3095.0 

8.62 

( 3 - 83 ) 

-90 


3082.3 


3117.2 

( 19 A 4 ) 

- 8.0 

( 8 . 66 ) 


aioa.1 



LOW 

3069.7 


*lntoa<liiy higfi and low tor wee* 


EQUITY FUTURES AND OPTIONS TRADING 


ASOAOoupt 

AIHXY MnUonWt 

naunntm 

Aigtan Wafer 

Ago* 

SSS3 

Msec, ent Rust 

Aaaoe. BrtL Porta 
BAAf 
BAT Wit 
BET 

noc 

BOCt 

BPt 

BPS Irak. 

Bit 

BTflWPeM* 

dihl 

Be* of Scetaxtt 


Ba*t 
BkaCtRSat 
8o*fa 
Boofet 


Ml Mnspacaf 
EMUrtl Atorayat 
■Britafi Boat 

Bmanum 

BrtartiSfartt 

Bund 

BwrnahCmort 

Rwtnq 

CrfjioSWrat 


Color Ocm 
Cwmtort 
Carton Comra-t 


Cam UNortf 

Cotton 

CoutartUt 


Do Lb Runt 


Era Chin Cfeffl 
Entapriao CBt 


6JM0 

57*j 

-h 

1.100 

387 

-a 

1.+00 

47 

+2 

fJM 

580 

-1 

am 

550 

+1 

225 

358 


2000 

267 

-ah 

no 

287 

475 

673 


US 

283 

*2 

1400 

953 

-20 

MOO 

441 4 

-*2 

1000 

114 

-1 

966 

402 

+5*2 

sea 

747 

14000 

472*2 

*4 

1,000 

332 

42 

5.100 

388 

-8*2 

2000 

250 

-8*1 

6400 

SBBfc 

-1*2 

723 

185 

+1 

2000 

534 

48 

640 

653 

+1 

1000 

313 

-4 

46 

412 

-e 

1000 

626 

42 

651 

437 

-2 

701 

<86 

43 

2000 

4000 

& 

-7*2 

1000 

<24 

-3 

2000 

16ft 

4*2 

43 

180 

+1 

1.100 

855 

-8 

1000 

3000 

4^ 

A 

2000 

432 

-e 

18 

290 


408 

306 

-3 

432 

860 

-3 

1000 

211 

-4 

1000 

650 

43 

740 

282 

41 

310 

taa 

-0 

210 

441 

+1 

401 

088 

-12 

2000 

183 

-T 

534 

848 


882 

62B 

-18 

727 

370 

44 

2000 

428 

«3 

882 

314 

48 

1000 

188 

43 

104 

136 

-2 

oa 

3000 

SS 


1000 

600 

48 

4000 

201 

-h 

3000 

571*2 

-*a 

1.100 

374 


3000 

320 

-6*2 

3.100 

412 

1000 

578 

-2 

1000 

188 

-1 

1000 

820 

45 

1000 

443*2 

+h 

2000 

774 

-2*2 

367 

351 

-2 

8000 

256»l 

A, 

814 

172 


714 

267 

-3 

1000 

170 

43 

47 

328 'z 



834*1 


4000 

446 

-7 

84 

581 

43 

668 

503 

-6 

06 

564 


2000 

180 

-5 

206 

8S8 

-4 

128 

772 


933 

454 

-1 

1,000 

384 

44 

4000 

544 

-18 

5000 

147 

46 

686 

588 

-3 


Loreto 


“EPCt 

UH 


VOL CtaOg Ckym 
000a artoo donna 


MMOtapmot 

UUandaBact. 

ttafeon (femi 

wet 

NOVtaBankt 
tWforfe PtNrtTf 
Not 

North Wart Waaart 


Northern Foodat 
ftovrab 


pact 

PBdraton 

PmmGmt 

huMatf 

HTZT 

Racrt 

RanfcO&t 
Ffettt a Cferent 


JMLf 
HMkMt 
Hauaraf 
notaRracfft 
Ryi BkScoOnit 
nayatf kmaancnf 
fiatortaayt 


ScoOahaNawt 

Scot. Hyreo-Bad. 


smf 

Saogirtck 


SoawnTranlt 

Shal Tnmralt 

amt 


SnaBi (r 


l(WKJA 
Smih a Naptawf 
SnMBaocrevnt 
Sraw Baodrem lifet 
Smthalnda. 

Southern Batt-t 
South Waioa Etact 
Sorrti WertWw 
South Wml Beet. 
Southern VMOTr 
Starafert CMrtd-t 


2X00 13&*i 
336 104 

008 45S 

1.700 144*2 
938 718 

3-900 421*, 
880 BBS 

2.100 139*2 

831 197 

eno 448 

1.100 447 

417 290 

2.400 554 

330 887 

Si 00 209 

892 074 

MOO 654 
2^00 657 ‘ 2 

2.100 102 

734 510 

1.400 306 
218 OSS 

2000 UG2> 2 
1(400 257 

1.700 411 

1.700 589 

1000 541 

680 782 

877 237 

4 J 00 * 6 Sh 
1000 1921; 
3000 389 

2000 290 

1000 40t>2 
30 1216 

015 927 

822 309 

2000 snh 

945 116 

481 187 

384 399 

3000 £60 

5000 730 

1.100 500 

487 263 

287 490 

1000 162*2 
1000 408*2 
605 308*2 
1000 472 

1000 046 

512 a 75 

821 519*2 
422 842 

1000 S00 


- 1*2 

-7 

•6*2 


-2 

+1 

-13 

«2 

-4 

-1 

-15*2 

-1 

-5 

-3 

-7 

410*2 

43 

45 

44 
-8 

44 

-10 

-« 

46 
-1 
-a 

-i 

43 

-10 

-1 

-3 

-0 

I 

40 
-0 

41 

-1*3 

-14 


Slock index futures closed 
above trie day's low point after 
a voJatfle session dominated 
by worries over interest rates 
and weakness In the fixed 
interest markets, writes Joe/ 
K 2 »zd. 

The September futures 
contract on the FT-SE 100 
closed at 3,095, at a 13 point 


premium to cash, but B below 
Its previous finish. Volume was 
a healthy 20,728 lots. It 
opened at 3,112 and during 
trie session. It touched a high 
of 3,124 and a low of 3,064. 

In traded options, stock 
options made a significant 
contribution to the day's total 
of 42,473 lots. 


■ FT-SE 100 WPBC FUTURES (UH=Q £25 par lul Index port 


(APT) 


Open Salt pries Change Hgh Low EoL vol Open bit 
Sep 3112-0 3095.0 -80 3124.0 3064.0 20728 5389 ? 

Dee 3085.0 31050 -T . 5 3085.0 30820 1SZ 3883 

■ FT-Se j*D 250 INDEX FUTURES MggeiO per tod Mm point 


SOP 


36850 3645.0 


>5.0 


3865.0 3650.0 


35 


4499 


■ FT-SE MP 250 MPEX FUTUHBS (OMUQ £10 per ftJ Met point 

SOP - 3646-0 836 

AM open hfeaal Agufe ■« tor pnrtoun day- t Baa vokane shown. 

■ FT-SE 100 PCEX OPTION (UR=g fSOfla) CIO per ful Index point 

2900 2960 3000 3000 3100 3160 3200 3250 

CPCPCPCPCPCPCPCP 
Aug 1902 5 l«a 10 107 19 70*; 33*2 <2*2 65*2 21*2 S4lz ID 123*2 3 170*2 

Sap 212*2 20*2 170 27 133 40 SB 55*2 71*2 77*2 46*2 106 31 >2 139*2 16*2 178 

Od 28 32 188 45 151 SB 128*277*2 02 99 7B*z 128 50*2 158 37 195*2 

Nor 246 41 2M 54 1fiB*2 80 138E 88*2 til 116 89 140 68*2 189*2 92 203*2 

Dect 233 56 183 8B 05*2128*2 83 183 

Oft 4035 tel 6,134 

■ Elmo STYLE FT-SE 100 MDSC OPHOW (LIFFQ CIO per tut Mm poire 

2985 2975 3096 3075 3129 3176 3229 3275 

Aog 188*2 8 Uf*2 14 88*2 24*2 54*2 42h 28*2 88*2 1«>2 102*2 8 144*2 2 189*2 
Sap 191*2 23 182*23312 117*2 48 88 68 80 90 38*2 118 24*2 154 14*2 IBS 
Od 208*2 43 143 78 81*2123*2 55 IBS*] 

DSC 236*2 59*2 178*2 91*2 11712138*2 76*2 193*2 

Hart 274 B4*2 211*2 119 156*2182*2 116 210*2 

CM* 1027 M» 3019 * Itadertjfeg Mar aha. tamtam Mm are toad oa adilrart prta. 
t Lag toed aq ' 


Bmham 

3000 

223*2 

-*2 

Sun ABoncot 

2000 

331 


T8N 

786 

232^ 

48*2 

n Barit 

230 

364 

♦1 

TSOt 

1000 

207 


Tamac 

3000 

US 

-4 

TotmftLYto 

2.100 

427*2 

*7*2 

Tayto Moodrow 

1000 

>44 

-1 

Taauff 

4,700 

231*2 

-1*1 

ThemeB Mfertt 

2000 

514 

-1*2 

Thom 0471 

1000 

1030 

-10 

Tomfewf 

10OO 

221 

-8 

Trufegor Horn 

2000 

77*2 

42*2 

LWOBfe 

315 

331 

42 

LWm+rt 

1000 

1010 

-1 

unfed BtocuMt 

SB' 

325*z 


UKLNferaraton, 

064 

539 


4^00 

184*2 

-2 

WariMOBOtt 

350 

739 

«3 

Wrtcomet 

2000 

638 

48 

WM Wacnr 

847 

621 

-17 

w nwiw 

628 

651 

47 


333 

529 

-5 

Ortfen* Hdgat 

515 

362 

-6 

WHs Camion 

179 

138 

♦1 

VlteVO, 

1100 

155 

-5 

Wotootoyt 

as 

825 

41 

Yarkshira EteeL 

1000 

827 

+1 


■ EURO STILE FT-SE MD 260 MPOt OPTIOai (QMJQ CIO per to! Mm poW 



9800 3550 3600 9650 9700 3750 

3800 

M 


■ 9« 38 S 59*2 H ST 


CW 0 ftto 0 SfiUtanoit prim eid ml 

IBM RI toon X 400m. 


| FT-SE-A 

INDICES - 

LEADERS & LAGGARDS 

■1 


Pacaii0B changes 
fepreertv, femes 

RMtetearkPeg — 
a Eafetoon a Prod 


Zfewcat 

BOTH ai Mg Wfere kr a Mtofeu rt itoor aorta Mlm0 la 040 9*n j 
« aa rffei n non m maaa dare |Mam a FT« lWMai coMBM*. 


1000 543 

970 7431, 


■js? 


reaLtortinfe 



R-SE tod 250 K LT. 


dnea Oocamber 31 1993 baaad on Friday July 29 1994 

*1308 FT-SE lid SO -309 Food Maaftxtro . 

m +159 Hexmcxs 
+708 SwpadSBricM 
+978 
-*€03 

+9*s a— auto 

+ 0.44 FT-SE-A M- 5 hrtl . 

+603 BMSraMtoAltodl. 

+204 to***: ft Bed to*. -853 UnadwUtoto. 

-006 FT-SE-A 380 — . 451 

479 Badricfly 
-088 'MalAHMl 
-100 aatui 
-183 Trenpot 
-200 DUMn 
•459 FT-SE tM 

-xao 8pkto.«toa4CUm — -«0i ta 




-BS2 

-iaio 

-1101 

-1108 

-T 20 B 

-T2.H 

■1200 

-1200 

- 14 JB 

-1504 

-1800 

-1871 

-1705 

-1804 

-1129 

-2024 

-2004 


1 FT - SE Actuaries Share indices 













The UK Series 1 





















M2S 

OQgk 

96 28 

toSJ 

N 36 

HP 



IWO 

!« 

ten 



lot 


W0> 


In 

FT-SE WO 

30620 

-04 

30950 

30623 

31172 

29294 

406 

604 

1704 

78.15 

115 B 05 

35280 

an 

28710 

34 * 

3 S 2 U 

2 / 2/94 

«J 237*4 

FT-SE Wd 299 

3640 J 

-Ol 

36428 

3 KPQ 

3641.1 


138 

560 

31.(7 

6101 

1348.76 

400 

30 

S 36 S 4 

27 * 

4 tS 20 

3 / 28 < 

13794 21 / 1*8 

FT-SE HM 250 ax far Tirati 

36410 

-Ol 

3645.1 

3635.1 

36420 

33190 

304 

6.15 

19 J 0 

5403 

1346-10 

41107 

ian 

33 S 4 

27 * 

41807 

19 / 1/94 

13780 21 / 1*6 

FT-SE-A 350 

1557.7 

-03 

1663.1 

15560 

15710 

14840 

300 

607 

1802 

3700 

119828 

T 7783 

an 

14510 

24 * 

T 7780 

2 / 1*4 

6645 140*6 

FT-SE Smtotop 

1834.57 

401 

1 S 32 J 8 

182908 

182877 

115304 

307 

403 

3105 

3308 

(41493 

88488 

4 * 

(77801 

6/7 

209438 

4 / 2*4 

1363.79 31 / 12*2 

FT-SE SrtnOCap « Ttotb 

18 C 0 Z 

401 

1800.79 

1707.54 

17970 * 

1 64 &.T 8 

3-25 

467 

28 . 6 B 

3191 

138122 

288872 

4/2 

T 7 ffi£B 

12/7 

206072 

4 / 2 S 4 

136179 31 / 12*2 

FT-SE-A ML-SIME 

154 S 74 

-03 

1550 L 60 

154406 

155705 

144878 

304 

040 

1808 

3808 

120702 

1784.11 

an 

144508 

34 * 

118411 

2 / 2/94 

8102 13 / 12/74 


FT-SE Actuaries All-Share 
o«y» 

Jd 29 dvrib 0T2B 


M 27 M 26 


0 «. En K 

HOT fM% tob 


Xd aq. Total 
)» 


»00 


Md> 


Low 


10 MORAL EXTNCnOBft* 
12 EdracOM todatoWsH) 

15 01. atogated(3) 

IB 01 Evtoattn 6 ftndfll) 


272 B .70 +05 271382 270806 272520 225000 
391191 + 1-2 386602 383107 387062 3 T 540 O 
267008 +03 287061 267069 2885.78 218900 
198809 +10 1961.85 195104 195177 181000 


303 409 2907 47.41 108408 274801 25*7 243001 3113 274801 2 ST 7/94 98020 191238 

126 5.14 2404 5404 106808 411705 2/2 J 8 GB 08 1277 410705 2 / 2*4 109000 31 / 12*5 

144 402 26.19 5054 1067.18 210701 25/7 234696 3 M 270701 25 / 7*4 98200 20 / 2*6 

243 103 30 J»t 2034 114000 200903 27/4 T 7840 O 31/3 3944 .M 8**0 06039 287*6 


20 GE 6 aHMRCIURSm 201200 - 0-1 2015.12 201070 202063 184000 177 402 2602 4629 

21 BuMng & Qn&UClkWX) 1100152 - 1.1 110018 119807 119046 <05800 125 408 2089 2064 

22 6 itoSra Man & Mactopl) 200000 -00 201034 200900 201607 172300 137 339 3154 45.71 

23 ChrtntSspa 248516 248509 247184 248200 218520 173 436 31.18 5003 

24 Unrated tohtorMtfIB} 1988.77 -Ot 1991.73 198015 202004 191500 407 4.70 2600 5188 

25 Bumntc 8 Bad totoP 5 ) 192039 -Ol 132800 192100 1837 JO 212080 190 053 1045 5190 

26 En 0 teeriraC 7 fli 190048 +00 190192 196174 190434 163030 290 400 2594 3044 

27 EntfWMtoo. VaMcM(t 2 ) 241204 +13 Z 38737 239034 24(025 188900 435 2.15 6108 4233 

28 Printra- Pto* & Pckopa 285409 -00 286204 286606 288136 238060 230 533 2143 4031 

3 Turtles 0 A uwtfP) 164071 - 1.1 188603 187005 167032 180400 432 010 1097 3825 


101833 
921 JO 158010 
83043 238122 
109340 256221 
100610 223107 
94033 IW.M 
100545 2011.17 
1154.42 251071 
1114 J 2 
92707 


2/2 186535 

an 113U2 
an t79o.io 
27/4 

an 

Ul 183049 
2 * T 73096 
a/l 209534 
10/3 2921.19 
4/2 181052 


24 * 223238 
20 * 212530 
21 * Z 3 B 122 
20 * 258223 
24 * 220137 
67 220139 
24 * 2011.17 
28 * 2 S 1 BJ 1 
4/1 304091 
8/7 


2 / 2*4 

18 / 7*7 

24 / 1*4 

Z 7 M /94 

2 / 2 ** 

4 / 2*4 

2 / 2*4 

2 / 2*4 

18 / 3*4 

2 / 10*7 


L 10 14 / 1*9 
9*192 
9 / 9/92 
14 / 1*6 
9 B 4 JD 21 / 1*6 
29*08 
1071*7 
14 / 1*8 
87136 14 / 1*8 
69039 24*90 


30 COKSWR LUUUS( 97 ) 267033 267030 265730 288033 208430 405 707 

3T BfeMrieaOri 223508 -30 223020 223055 224005 201560 403 7J5 

32 S(Wto. 'Hem 0 DtoMIO) 271100 — 2 T 7206 2 T 50 . 7 B 27 BJ .77 277530 139 035 

33 Food Ifcn id a c ftaaa CT 221582 +51 2214.15 220175 220560 222730 403 739 

34 HouM/Utt GooH 3 (t 3 ) 244003 +03 242535 241030 245200 223130 330 705 

36 HctfBi Caret?!] 1671.45 +01 167049 166935 166605 170630 233 103 

37 RHmxtUOcestia 288335 206300 285087 288908 285000 408 733 

38 Tsbaccom am.70 -0.1 3707.96 26*905 3712.17 396200 538 908 


1532 7133 9 T 10 O 
15 J 9 6003 100088 240152 
15 M 0909 92940 
1404 8572 09731 
1579 52.15 809 J 9 2 * 4.14 
6733 3239 96409 1909.13 
1510 5931 89591 32*703 
110712733 82 AJ 6 471838 


207137 


atn 
IW 
24/1 
19/1 
18 * 234174 
19/1 157117 
19 n 204109 
7/1 372024 


24 * 300000 22/1292 
24 * 2*6452 19 / 1*4 
24 * 148730 11 / 5/32 
24 * 200084 19 / 1*4 
27 * 20 B 4.14 18 / 2* 4 
07 204730 28 / 9*7 
1 * < 168-90 14 / 1*2 
24 * 473033 29 / 12/93 


00700 14 / 1*0 
982-00 14 / 1/86 
08709 14 / 1*6 
940.19 14 / 1*0 
927.18 21 / 1*8 
07230 21 / 1*8 
95 X 78 13 / 1/86 
93230 9 / 1*8 


40 SBKICES&IOI 195733 -00 196802 1968.69 198040 1824.10 116 OIS 1007 

41 Dts&ttuBraplJ 287902 -09 270120 272833 Z74304 204730 105 048 1802 

42 u ton & Hotoapa) 21283B -03 214104 213800 214107 1844.70 145 *34 25.75 

43 U*H(30] 207176 -00 287393 286232 292034 237730 137 508 2114 

44 BetaJfeB. FdodtIT) 171036 -00 171567 1724.45 171704 186120 174 93B 1115 

45 feofeto Cawa4451 187904 -06 168831 169100 170804 1557 JO lit &48 1909 

48 Saral SrtWWMOl 157605 -0.5 150407 157800 1586.13 156300 257 603 1906 

49 TraepaOiq 2389.17 -09 239015 24OT0B 243189 2(8070 334 537 2197 

51 OBW Saretea & Buarootf) 116738 -04 1171.40 117142 1175.67 117130 4.19 231 65.1B 


3739 95800 220707 
56 L 97 82239 321903 
4301 104506 238032 
4018 99282 888011 
4035 1 WT 33 131400 
3308 09128 191037 
24 J 9 95430 IS 
4136 92114 
1018 995.06 


19/1 1054.19 

an aouza 
nn 004.18 
17/2 2875.11 
19 TI 151134 

4/1 Hiai8 

2/2 147800 

an 2(8418 

10/2 113032 


27 * 220707 19 / 1*4 
6/7 231903 2 / 2*4 
6/7 239032 17 / 2*4 
27 * 334 B.T 7 17 / 2*4 
25 M 223600 28 A *3 
27 * (93424 29/1293 
28 * 100043 2 / 2*4 

24 * 200098 312*4 

21/4 245030 16 / 7*7 


94430 23 / 1*8 
99050 21 / 1*8 
97540 21 / 1*0 
97020 9 / 1*8 
81740 2 W/B 6 
87010 9 / 12*8 
1 / 2/91 
14 / 1*8 
no 14 / 1*6 


60 uromap* 

62 aeeancRy(i 7 ) 

84 &B DW 4 Won® 

66 r atoo n u rertc M BBt*) 
68 Wawit 3 » 


2277.73 

2271.46 

178043 

105040 

1872.49 


-10 230006 228113 230111 219090 432 OS 14.78 6929 07533 Z 7 B 203 

-1 0 229402 227634 229608 180230 433 1034 1133 7204 94022 201012 

-26 1837.41 183703 109113 204000 070 t t 6079 817.79 

- 1.1 1978,45 196730 198034 2021.80 422 005 15.13 9018 03407 

-03 188087 180097 178147 172300 5.19 1208 071 65.77 9340 S 2 U &79 


an 210032 

2/2 2Q24J2 
7/1 

2/2 II 
3/2 158801 


24* 270203 2/2*4 

24* 29(012 2/2/94 

24* 237908 11V! 2*3 
1* 248100 29/12*3 
27* 2138J9 3/2*4 


MB 50 3 / 10*8 
90630 7 / 1*1 

99430 9 / 12/86 
BUD 3 / 10*8 
924 JD 1 / 5*0 


69 HHEnUMCULS(63S) 


(670.47 -00 167534 167006 188177 156306 333 800 1831 3904 11717B 187036 2* 150239 24* 197038 2/2*4 ■* 13f(2ff4 


70 FrUNOALSCOq 

71 BxftanQ 

73 MuctoaXIT) 

74 Ute Asaurwce® 

75 Mncnam aantote 
77 OOw FhancUCN) 
79 PIW 0 K 41 ] 


2 l 76 i 90 

2791.62 

124S0S 

237143 

285601 

190030 

157018 


-05 219965 
-07 2811.06 
♦02 124140 
-07 239019 
♦00 284837 
-Ol 190135 
-0.4 1583JB 


217135 

277834 

1235.05 

233708 

285090 

190531 

1588.72 


219700 

2007.14 

125051 

243537 

2888.16 

191208 

160104 


209000 

253090 

1484.10 

24nm 

277730 

101OTO 

148110 


407 8.49 
4.13 830 
5.18 1130 
504 738 
151 1106 
165 809 
332 337 


1156 5830 
1233 7388 
050 -Vila 
1833 5297 
1006 8080 
1407 4502 
3129 3014 


95404 2737 J 3 
82079 M 0 I 35 
84230 158301 
90132 292107 
BS 707 3781 09 
100900 227905 
89052 IB 


4/2 2B34J4 
4/2 201 177 
24/1 115182 
19/1 218031 
2/2 263808 
4 /3 175133 
4/2 145340 


24* 2757.13 4/2*4 

m 3R35 4/2*4 

24* 188409 29/12*8 
1* 292107 18/1*4 
1/7 370139 2/2*4 

4/7 227038 4/2*4 

27* 213240 5/9*9 


97200 21 / 1*6 
96080 23 / 1*6 
87030 Z 5 **Z 
987.70 23 / 1/36 
27 / 1*8 
1/10*0 
71&40 16 / 9*2 


M'^gli^W(f23l'' "5i0i7 +02* 201007 28043^^1 244630 114 135 5073 3070 94205 319431 2* — _ «■ Jg 


89 FT- 5 E-A ALL-StUSOBSS) 1545.74 -00 155030 154436 155735 1448.76 334 630 180 B 3068 120702 T 78 M 1 


7J2 144506 24* T7K11 2**4 9131 13/1204 


Hourly m ov e m en ts 


Opan 


SL 00 


1000 


lino 


1130 


1530 


18.10 


Hlgtorttoy UjwUgjf 


FT-SE 100 310 Sl 2 31040 3100.0 3094.3 30 K .6 

FT-SE MX) 250 3648.9 3648.4 3647.7 3646.4 36409 

FT-SE-A 350 15670 15668 15650 15820 15616 

Tbna of FT-SE 100 topt & 3 tom Law U«n 

■ FT-SE Actuaries 350 Industry baskets 
Qp+n BlOQ 1000 1100 T2J0 


30907 

3650.4 

15640 


31040 

38515 

15670 


1300 


1400 


1500 


30800 

36450 

15570 


1010 


30620 

38370 

15574 


31070 3 DB 0 J 

3653.7 3637.0 

15680 1552.7 


Ctoaa Previous Changa 


BWgACreitfcn 

P tiam nc auBcte 

Water 
BMre 


11505 11550 1154-4 

2857.0 28538 28404 

1918.0 19110 19110 

2830.9 2829.1 


1152.1 1152.1 

2848.7 28470 

19010 1893-7 

28210 2822.7 


T 151.4 
2847.3 
1900.1 
28250 


11510 

28504 

1901.7 

2836.7 


11504 
28410 
18807 
074 . 


1139 LS 

2841.7 

18680 

28240 


1139.6 11550 
28301 28380 
18711 18860 
28200 28404 


■104 

-00 

■140 

-210 


agtymcHonoryoMp EquHy aaflen af.ggg jgJSte - EquBy aacMen gggE jSSs WO 


FT-SE ToU loan Men 31/12/9? WOQOO FT-SE MU 2» w W» 1(W8 
FT-3E OnaflCop 31/13*2 138178 FT-SE-A 350 

FT-5E antoOe oc tar tri» 31/12*2 13B1T9 FT-SE 100 
FT-SE MU 750 3VT2*5 141260 cw+rt my 

II* FT-SE ICO fee FT £E 1*0 HO MO* FT-SE torefeJWMn,.... 
nrenort Tam UiM, bote to cremicaat wot M komaw ef ActoM and t 

HfevMc ol lanu >9M. O The FWfel Howe IdM ISM AS ngro 

Unfed. Auuer Oto WM CrererenK t Swaor RE reeea gntor aun GO •• ms 


31 / 12/85 141240 Water 
31 / 12/85 682.94 Non-RrancOls 
31 / 12/83 lOOaOQ FT-SE-A AO-Shara 
31 / 12/90 1000.00 AM Other 


29 / 12/89 1000.00 UK GU» Micw 31 / 12/75 

IOU /82 100.00 lndm-Lir*Bd 30 /VBS 

1 C/ 4 /B 2 100.00 Dab* and Loana 31 / 12/77 

31 / 12/85 1000.00 


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br toe London S fe«* H fe i mcnrt Sloeh Entogo c 4 W> Uimd W nyfam w rt 

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10000 

10000 

10000 

byTho 


Lloyds 

fails 

to please 

After reporting a 21 per cent 
rise in profits, Lloyds lfamlr 
saw its share price fall sharply 
as the market reacted sourly to 
the underlying factors. 

The high street bank's fig- 
ures came in at £605m against 
£498m last time and a dividend 
of 7Jp. The consensus forecast 
was for a profit of around 
£810m and a dividend of 7.6p to 
7.8p but the real concern was 
over underlying profits. 

Analyst Mr Martin Hughes of 
Credit Lyonnais Laing who 
maintains an unfavourable 
view of Lloyds said; “This is 
the third half year of reporting 
that Lloyds have had nothing 
to say in terms of growth.” 
There was also disappointment 
that the bank did not say more 
over progress on. the bid for the 
Cheltenham & Gloucester 
building society. 

A number of City analysts 
are understood to be preparing 
swingeing forecast downgrades 
for the foil year and for 1995 
and could lop 15 per cent off 
their estimates. The current 
year consensus of ,3 40m tips 
year is expected to rnmr* down 
to £1.100m while next year’s 
forecasts are semi to be moving 
down from around £1 ,440m to 
about £I.20Om. 

The shar e price was imme- 
diately marked lower to stave 
off a wall of selling. Although 
turnover reached 4Am by the 
close dealers expected the 
move away from Lloyds to con- 
tinue for some time. They said 
a number of investors were sit- 
ting on their holdings until the 
shares recovered slightly. 

The shares ended the day 18 
lower at 544p with both Credit 
Lyonnais Laing and Smith 
New Court recommending a 
switch into Barclays. The lat- 
ter which reports on August 9, 
saw its shares climb 9 to 55&. 

Food sector active 
The turbulence surrounding 
the dramatic bid developments 
continued to reverberate 
through the food sector, 
although turnover was well 
below Thursday's hectic ses- 
sion. The focus of attention 
remained on whether Tesco 


NEW HIGHS AND 
LOWS FOR 1994 

WWMXMSPT). 

BUL0MO A CNSTIM (1] Bwft BUM MATL8 
» MCK18 « etme IN. CHB9CNA fl| BOC, 
ELECTHIC JI ELBCX BMP n EMon ftM). 

Rocrt. Tfetoefe Ttonoiaggr. itavarao. 

LMtortl. ENOMEEWNS (* Booth. AtnokL SOD. 
EXTRACTIVE (NOB M Bertifer OaU. COM toML. 
Do «#», anpute Ptotom. Jort HJ> Orta. Ami 
Mm. MMGB11KXT THJB18M WWBSVOW 
COMPman m Pry*, lbbuweb Htnai to 
Zrttvs. ME0U (Q Dortne Ktoitorttoy. WL 
BufertM Crerena. OIHHI nUNCML fl| Cfea 
MM, omen some a bubnb m toto 
lianra KBpong. RETAKBIS, RMD (* GragoA 
MDfmon JW). Do SMpc. M, HEt/mEBS, 

SQSULAtoaVHidmLuwy. 

SUPPORT 8SRV9 (Z) A(to*rt. MTtoia 
CortroL TRANSPORT [U Bargeagn A 


0X78(171 BREMSUES Abcol teremuni, 
BUM MAILS S MCHTB a EcfeOO BBrxto. 
man. CHBOOUS (1) Dorttoi. B0CHMC « 
euer SOUP n todfebto Cortral Sme. 

«nfc. Trtamtot, TVnMto. 

I ( 1 ) Pnxeen. HEALTH CARE CQ 
BfelxR. CM UK. HOUSCMOIS HOODS « 

. TornMnaon. WK5IMB/T TRUSTS (Q 


Ctto. LBSUK ft HOTB0 (S) Cby CM** 


eu 

Lincoln Nodrefe. MBM FS BfetoiL Do 04pc 
Pit, Snopr Kkfe. WMCO, Qa Wrtm., »*RCHA»tT 
BANKS (1) Baring* MpcM. OTHER 
HNANCIAL pi rtonfetogwni i i fei rt Orton. 
Min Jifeftte. Towy tor, OnSR SBWS 6 
BUSKS 0) teem PHARMACaitEALB (1) 
Madtort, PRIM, PAPES ft MCKB (* Doftn. 
Frt gnon tort , Sonfc Waddtogion (J). 
PBOI^TTY (3 D l rt U p mOT E « Cm , (few. 
RE1MLBO, QENBUU. a CfeMn Cmh. 
Cotarvtotor. Partrido* Rns Arts. SUPPORT 
SERVE A Macro 4, Ftoftox. Vkturtfey, TEXT0E8 
ft APPARB-tR AM*. TRANSPORT (RDfeX 
AMBHCANS m WMlpooL CANADIANS (1) 
Hudxan'a Boy. 


would return to the fray to 
counte r J S ainsbury’s £210m 
bid for William Low. The Scot- 
tish retailer, which had 
climbed 60p in the first four 
sessions of the week, was 
steadier yesterday closing a 
penny down at 323p, still well 
above Sainsbury’s 305p cash 
offer. However, turnover, 
below recent levels which had 
peaked on Thursday at 11m 
shares, totalled just over 
500,000 yesterday. 

However, the support for the 
price, continues to point to the 
market's expectation that 
Tesco will come back with a 
higher offer. Analysts 
suggested a counter-offer of 
around 325p a share - 
although there were also a few 
siren voices hinting of a Tesco 
withdrawal Shares in Tesco. 
which began the saga two 
weeks ago with an agreed 
£154m for Low. slipped 1% to 
231%p. Sainsbory also weak- 
ened. closing sy* to 407V4p. 

The spotlight also fell on 
William Morrison Supermar- 
kets, the shares being bid up 
6& to 139%p with turnover a 
sprightly 2.1m. But food spe- 
cialists were highly sceptical of 


the speculation, in view of the 
large, albeit minority, share- 
holding by the Morrison fam- 
ily- 

RTZ wanted 

The world’s biggest mining 
group, RTZ, jumped 10H to 
862'Ap on news of an expansion 
at its KfiRnnrilifa mine in Chile. 

RTZ has a 30 per cent stake 
in the mine which is expected 
to become the world’s single 
biggest copper producer in two 
years time. Last year, the mine 
contributed £36m to RTZ's net 
earnings of £3 73m but some 
analysts believe the impact 
will be less marked than initial 
figures suggest S.G. Warburg 
argues that it will only 
increase earnings per share by 
four per cent and not until the 
end of the decade. 

Pharmaceuticals group Well- 
come jumped 8 to 639p as the 
US Food and Drug Administra- 
tion’s advisory committee rec- 
ommended approval of its con- 
troversial anti-AIDS treatment 
for reducing the risk of trans- 
ferring the HIV virus from 
mothers to babies. Also, Pari- 
bas issued a buy note arguing 
that the recent figures high- 
lighted the company’s solid 
performance in a diffic ult envi- 
ronment and the shares were 
trading at an unjustifiably 
high discount to the market 
and sector. 

Profit-takers were out in 
force in the water sector 
reversing several of the sharp 
gains seen following the issu- 
ing of the Ofwat report on 
Thursday. But other stocks 
remained firm ami d a flurry of 
broker recommendations in 
response to what was consid- 
ered a highly favourable docu- 
ment from the industry regula- 
tor. 

Among the fallers, Welsh 
tumbled 17 to 62ip. Yorkshire 
13 to 543p, and Severn Trent 16 
to 556p. After the market 
closed the latter group’s agm 
heard that sales and profits for 
the first quarter to June were 
running ahead of levels for the 
same period a year previously. 
Northumbrian was the best 
performer, adding 8 to 635p. 

Motor dealer Lex Service, 
which reported disappointing 
figures earlier this week, lan- 
guished 13 to 424p. 

Electricals group Delta lost 6 
to 504p an fears of stiff compe- 
tition in one of its key markets 
following Thursday's £96.1m 


■ CHIEF PRICE CHANGES 
YESTERDAY 

London (Ponce) 

Rtses 


Barclays 

554 

+ 

9 

Coal bws 

95 

+ 

5 

Eurotunnel 

314 

+ 

8 

Fairiine Boats 

394 

+ 

11 

Grosvenor Inns 

148 

+ 

10 

Learrnonth & Burch 

91 

+ 

13 

Microfocus 

980 

+ 

40 

600 Group 

70 

+ 

5 

Fade 

Abbey Nati 

397 

- 

9 

BAA 

953 

- 

20 

East Mid Beet 

626 

- 

19 

Jacobs (J.l.) 

49 

- 

3 

Johnson Fry 

185 

- 

19 

Lloyds Bank 

544 

- 

18 

Medeva 

121 Mr 

- 

12 !% 

NatWest Bank 

448 

- 

8 

P&O 

657 Ms 

- 

15 V* 

Radiant Meta) 

90 

- 

5 

Seven Trent 

556 

- 

16 


reco mmende d offer by Hanson 
for Scholes, a rival to Delta. 

Transport and property 
group P&0 tumbled lS'/a to 
657Vip following a press report 
of a formal investigation by US 
authorities into whether the 
Trans-Atlantic Agreement (on 
routes and rates) has engaged 
in anti-competitive practices. 
P&O operates container ships 
on the route. However, one 
analyst said: There is little to 
worry about since profits from 
those operations are tiny.” 

Channel tunnel operator 
Eurotunnel moved 8 ahead to 
3t4p. after reports that a joint 
French and British govern- 
ment committee awarded it a 
provisional licence to operate a 
limited passenger service. 

Profit-taking in BAA left 
shares in the UK airports 
group 20 lower at 953p, after an 
£llm jump in first quarter 
profits to £illm. Charterhouse 
Tilney continues to favour the 
stock and upgraded its full 
year profits estimate by £6m to 
£366m. Mr Mike Stoddart at the 
broker, said the adjustment 
was to reflect, “strong traffic 
growth and the confirmation 
that trading is in line with 
expectations." 

A positive agm statement 
from BPB, the building materi- 
als group, saw the shares 
appreciate 2 to 332p. Hie chair- 
man told shareholders that a 
trend of better sales volumes 
semi last year had continued 
into the first quarter of the 
current financial year. 

BT shares shaded 6'A to 369p, 
with Morgan Stanley moving 
to a hold on the stock. 


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September 1994 

This high-level international 
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TeL 061-673 9000 

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1000 

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1000 

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969 

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1002 

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3574 

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1100 

21 4C 

35.74 

8910 

itao 

2102 

27.19 

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2102 

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1230 

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1708 

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1056 

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1401 

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2201 

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3335 

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22-74 

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1 iMt * 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


WORLD STOCK MARKETS 


NORTH AMERICA 

IMTH) STATE (Jul 23 /US$) 


B>l — — p 


2.7 163 S*j* 
M 19133 gS" 
16*11.2 110 

S3 61 “SS 


25U 13 160 IS? 


^ 2 $ § 


431*3 I™. 
60265 £”"* 

13 167 f°g^ 

i c *i 7 taxon 


DowQl BQ4* 
DcwJra 30e^fl 
DWm iK 
Utbsw 21 it 
Drayfu afljto 
OukaPw 3&E 
Dwifto sn? 
DuPont So 
B3G lyjd 

23 Ij 

EKonak 

31* 
31 S 
. _ fa\ 

g/gy »h 

Earn 321? 


2Vjj 10* 13 167 
2SJg 13 21.7 
13* 12 653 
Wi 13*2.7 
22* 14 65 364 

23* 63 17.4 
20* 73113 
33* 13 62 
30* 21* _ 113 


17 203 
67 207 
S3 43 
3311.2 
13 16B 
5.1 110 
41213 
82* 48* 12 71.7 
14* 18 103 

5^ 4J& 13 33.7 
toil 23 202 
* 24* 14 10.1 
58* 23 163 
21* 13 _ 
23243 
13 369 

7.1 87 

19S 11* 43 163 
87* 58* 43 1*1 
59* 45* __ 523 


WWUP B 
M/gna B05 
HmXn 151 
mm 83i 

UMl 


4-1* 111 

*1* 


30* ai 307 
‘ 2.1 S50 
12 167 
*3 7 A 
55 23 83 
15 61 508 
18 267 
65 143 
-1X5 


l* 58* 44* 33183 

Z 12* 5* — 167 


-* 88 * 53* 5.1 1*1 
«3* B9* 61 13 15 5 


-* 1C 8 * 33 51? £urta 
-* *4* 37* 22 51 9 »3S 


31* 28 223 
45* 13428 
29V 28161 
24* 28 7.7 


3 

-H 25 t 

•5 44* 


61 13 15 5 
30 »4 103 
SOU ZB 128 
22 * IS 62 
50* 38 213 


|L m ' 

3* -* Ti ' f 52fl GOt 273 -1267 39=7211* 2ff 

2H* -V SJ* 30* 17 614 COM 555 -*3 6*5 310 23 

226 •* 2T.J 21^ 03560 KJZU 4&M .50411® 383 26 

15* -V IS !4* 5 100 fcwra VO -17 830 485 27 

16 •* 19 14* t! 26* Lra=ff «3 -3 7164KJ0 61 

20* ** 23* 18* 63 128 KXSTC 734 -1 1.073 B32 7 3 

17* -* 20* 16 64 160 fetftai SCJo -.» ito 72 37 

1 «* -i, 10 * 17*6911.7 tssm «? -3 STB 430 31 

16 «* IS I3j IB 2£3 fcO* £74 -0 703 500 5 8 


♦* It* 7* _ 27 tansr sen 
.* 21 16* 12 362 F-33* S.HM 

_ Z&2 z « 16 _ 57*cr? *55 


. IB 70 625 3 3 
-30 152 115 63 
.21 HJB 733 ?.H 
— 6020 4840 18 
.3 STB 365 IS 


►15 2.754 2810 67 
207 08=721233 22 


-* 37* 2SU 33 238 

*5 on, 3i* is _ 

-V *9* SOU 29 11.1 
“ 20 128 
16168 
32* —227 
.* 57* 43* 39 63 
... IB* 14 38 118 
-»2 42 31 18 66 

-t 64* SI * 20263 
24* 21* 24 _ 

♦* 47* SO* 21 168 
*H 40 31* 16 _ 
.* 37 24* 03 _ 

-J- 55* 43 09 262 

-.13 650 4 75 _. _ 

-»* 25 18* Off 198 

** 36 17* - SB 

+»i 23* 23* 38 170 


*aara 

,3* 

_122 
. 4.p 178 
38* 64 _ 
12* — 1.4 
27* 38 129 

16 18261 
31* 79 118 
“I* 63 120 

37* 18 359 
18 348 
. . 6.7 68 
25* 48 I3lZ 
46* 18 142 


8 Z* 64* 2D _ 222? 

8* «* 12 128 52ST 


61* ♦* SZ* 44 12 565 

Eg? ®» SSMJM 

AraOon 28 * -* 

iSSSu % +* 

SSS, 5,3 


2SU 14 118 
24* 48 25.1 


48 25.1 
1517.1 
5-1 1X1 

n ■ ia s i-mmm 


Rna A 

W8W . _ 
fam 49* 
ftWd 4»*af 
FsBiO 75* 


" 18 79 
58 117 
68 — 

238 

1.7247 
28 117 

"SB 

48179 
.121X2 
41* 48 59 
42* 38 161 


SaSDa 60S0 
SP VMO 
SM «55 

STET 5713 
SM 5800 
Sawm 4.00 

sp»c« 9 .SW 
ra ,2730 

iMunmit 
lorfr (6315 
ItatoUta 13850 


-130 10.IV 77S0 25 
.115X1053863 15 
• 15,833 400 . . 
.At 0830 4835 1 9 
.00 7^511 4,145 
■80 4310 2.873 . 
♦**01I.!W B80D 39 
•420 I3«C 6701 4.1 


M3 -« 713 436 . _. S4f»m 1 .000 *101,160 SM . - 

.. 1.710 *101931 18» .. — 5M0M 1,770 -10 18B0185D 1.4 .. 

_ CvonS 3800 .50 3880 2500 ... 428 4 111 Mj 301 17 .. 

- 1 870 *30 1.410 1.070 10 _ S«Uw 8850 *008860 7,490 — 

.. — -- ;twfp ln io *3019101820 _ 


•IS 2KB 1832 28 
^DlJXIMP 10 
-15 ;< JKr 1S43T 20 

*3WtXnuraiM 11 


373 -37 MI Sl5 . . . swp 1.700 *3019101820 . 

400 *8 462 917 12 - SUMP 2870 „ 2900 2,460 .. 

on *a M mi -- _. 

250 . . 1.440 1.M0 05 _ nr* -im fcgju i.otu 


250 . . 1,640 l,M> 05 _ 

— wrair-i 7 02 *12 763 57, ,8 

_ CMi 59-10 *10 5970 2330 _. _. 

cnamn i.isa »ioi8Soi.iai — _ sacMoi 1730 


5870 . 2960 2,460 .. 

11/2 *91810 775 .. 

two -10 2820 1,610 

V ZB -4 TjOiO 340 . . 

1.170 *10 1.7*0 1.1*0 . 

17*) __ 1.360 1,120 . . 


Time ^ r* IS 533 39 aa UK 624 -0 res 500 5 6 

Trac ii* — :i* ic-3 — _ inn sea *9 ero eei 2.0 

VftCDcW »* — 3l 23* 09 ISC USCO *33» ^7049- 9a 377X1 

l*sw S* - 7* 5* 1 4 45 -=ri- 134 -76 'BT ■‘o nJaTa _ 

macs z:* ** 24* .§* 39:13 SR* 1 js9 •ai.33si^n09 

NW4 301, 44 35 (9 XX Lxcrc) 5 403 -1M 0.750 5.430 67 

lt« 3S2SC .£50 374 21Q26 _ 
CIIDODC lU0 W •« 62443610 30 

CUnUrC IfcrKfi 23580 »38D 27470716 09 

Hum 129 4 Q .1011980 0780 50 
MMC sen -J ,846 078 a 1 

mss 142 ... IBOK 130 S3 

JWStf»(Jti29/SeM Cut. 21666 ^ 260 100 - 

l w Ovaa 330 IQ .10 52S 33370 48 

KM) 429.40 -7.40 5KXO.10 14 
AisUUr 18Sa -2)28991.750 58 — gBPO f :» *4 SC TV ,41 10 

Bkfiiml 99 7 -16 1873 BBS 08 _ ***** 

ObcPI 880 -1 SM 638 7.4 _ *0* . 

EAGoa 1310 -00 4^90 3825 0 5 __ W 

EW 1876 -61.713 5.130 1.4 _ *=tt 6 

Linn 1800 -TO 1.367 1.«o 0 4 _ Mffit?. 

U-41 yj 4 _i 7 744 ssb _ ffu l * 132.40 -470 IS7« 1 1 130 Z7 


muHl 2 .SIO *10 2,780 £400 - _. snu S34 *35 333 503 60 

CBuore 1.570 . -I960 1.210 „ _ — - - — 


5* - 7* 5* 1 4 45 i=rif 

ii? 


EUROPE 


-1* 150 95* _. ... 

_! 16* 15* X9 — 
-1* <|* 30* 67 91 
•% ITU* 1Q0* 4 3 159 
-* 50* 42* 33 559 
-* ZB* 21* Z7 28.I 
»* 39* MU 88 TZ4 
.1* 97* 55* 6917.1 
-* 16* 8*312 XT 
-. is* 0* 19 0.7 

-* IB* 11* 1914.1 

-* 29* 14 29 

-* 41* 34 * 34 8-7 
-* 20* MU 1.7 55 0 
_ 32* 155 0.4 79 
_ 53* 43* 40 119 
-* 46* 38* 59 363 
-* 72 SB 3J3 17J 

♦ * 30* 74* 67 2333 

:? Si 


* 49 119 

2U 19 661 


8Xig£i 




_ V. 50* 39 109 
31* 23* _ 202 
55* 47* 3.1 24.1 
35 30 39 79 

-1* 38* 24* 1.4 360 
4* 27* 22* 04 17.7 
— 0* 4* _ 39 

** 57* 43* 66 379 
-* 31* ft* 1 A — 




54* 

as 

31Uffl 
fosomt 41 * 

FreMcM 17 

FOflmEn 7Qt, 

SflTX 40* 

GBCO 50* 

GTE 31 S 

Baden 31* 

fiartnn 50* 

Gaclnc 35* 

Gncxrp Il*d 

Oman 20 * 

GonDwi 33* 

Gofifc 50* 

SO 


17 12U 
10* 6* UJ 
' 31* X9 1X4 
18* 64 162 
30 a* 4.1 259 
24* 7.1 160 
40* 09 279 
_ 19 159 

19 ._ 
63 266 


J 41 i 

** 45* 32* 19 259 
— 21* 16* 7 A 379 


♦2* 45* 
-* 74* 

*5 25* 


09 257 
.. - 39 169 
21* 79 149 
36* 12 161 
34* 18 219 
22* 29 129 
24 68 52 
33* 61 Z79 


15* 5.1 304 
19* 59 159 

% a " 

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29850 71X50 10 

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+25 £5S4 1088 _ 
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900 +30 980 711 _• _. 

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1070 +10 1.230 790 X7 — 

£810 +10 30,0 2X80 — — 

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♦133 l/sn 11.25 4.7 
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£330 
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♦17 705 588 IX 
♦17 70S 587 1 8 


—15 3088 £173 1.4 
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+8 747 501 X2 
♦ 7 970 723 1 3 

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+45 £140 1315 — 
♦150 6,100 3010 — 

+80 30*5 1070 — 
+750 34X50 2X100 10 
♦145 12160 8088 £0 


| INDICES 

1 

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0 0 0 — 1994 JcC 

29 28 27 W Low 29 

0 8 1994 

28 27 Hgh LOW 

Dour. 

feta 8 0 8 1994 sanaempradra 

26 27 s rare uv rare lm 


— 1X00 905 — — 

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*7 833 803 — — 
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+12 584 384 — — 
♦14 1010 796 — — 

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-12 560 407 — _ 

+7 445 310 ._ — 

-23 BBS 395 — — 

— 10801.140 — — 
+20 1010 1,450 — — 
-S 690 455 — — 


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2.4* -.14 £88 204 X9 79 
1.49 *.V 702 1.12 AO .. 
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-30 1,00 X7S £4 42.7 

♦.IS 480 203 5.6 . .. 
*.,U 165* IXTtl XB 31.5 
£72 +02 640 £45 XD 
3 +.02 3X9 £55 1.7 750 
7.77 +02 1X04 780 £9 269 
£30 —.15 XZ1 £15 XT - 
11.18 +.08 1300 1042 4 5 130 
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£70 +£1 TO0O B.U5 OX 8.1 
404 -03 808 304 30 — 
£17 + 08 £79 100 63 - . 

_ 142 -02 4.13 IDS 30 260 

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— —1X00 905 — — Pnnccn 105 +m £15 1X0 — - 

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3 -.03 302 200 50 12S 
£46 -62 600 £49 70 — 
£40 +.10 OXS 5.(3 09 ~ 

638 +09 X30 £03 30 _. 
£15 -.07 £S8 400 4X — 
102 -.04 1.74 1.19 60 — 
402 6J5 428 0.5 -- 

5.40 __ 7.13 5.01 70 ft, 

303 +05 4X2 3.6ft ae 9 1 
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000 — 1080 1,140 _ — SonOra 1010 -.10 1110 8.10 50 — 

202 +.02 300 £85 — — 

... _ £12 +01 £70 205 7J 22J 

887 +13 881 BTZ — — TNT £70 -.01 £74 101 — — 

346 +5 400 301 — — TrtOtM 17BW +J08 400 X2S 40 — 

— . 6.06 +.13 908 £10 32 .. 

7X0 + 804 0X0 1.4 — 

700 +05 9X2 7X0 10 — 
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404 -.03 5.55 4.15 10 — 
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4368 4E9X 
274J 2725 


427 J 48490 31/1 
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410X9 41 107 413— B 48088 2/2 

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624 4U5 ox “ “S +03 16X0 80S £ 

— , 03 — KM 32.10 -.10 SO 28X0 £ 

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1.070 +10 1.170 985 — 

1X80 -20 1080 1.020 ._ 

960 +10 630 385 _ 

280 -I 291 231 _ 

800 -10 844 585 .... 

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+S 404 315 ._ 
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SBF 350 (31/12/00) 1361.16 1367.47 137032 198530 ZC 

CAC 40Pina®7) 207(90 2053.43 205509 239803 X 


126835 m 
1988.18 4 n 


/teawhGffl (1/2/37) 146(2 1447J 14609 16B390 31/1 


■ RATIOS 


FAZ AMtadlNafiR 81005 80503 811X2 880X7 IB/S 

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!MX(3(yiaS^f 214894 212681 21X144 277J.J1 18/5 


76701 27/6 
714930 27* 
196602 206 


Swia 8k M PI/IKS 120263 113X65 118GX8 142X34 31/1 
SBC Gaurt (1/4787) 318.15 91202 90X03 108X29 31/1 


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s ■ 


FINANCIAL TIMES WEEKEND JULY 30/JULY 3 1 1994 


2 ! 


WORLD STOCK MARKETS 


AMERICA 


GDP details 
prompt strong 
rally in Dow 


Wall Street 


US stocks rallied yesterday 
morning after the Commerce 
Department announced that 
the economy had grown at a 
slower rate than expected dur- 
ing the second quarter, writes 
Frank McGurty m New York. 

By l pm, the Dow Jones 
Industrial Average was 32.05 
higher at 3,762.88, climbing to 
its highest level since June 17. 
The more broadly based Stan- 
dard & Poor’s 500 was 4.76 
ahead at 459.00, as advancing 
issues on the Big Board 
swamped declines by a three- 
to-one margin. Activity was 
brisk, with 176m shares traded 

rm thp NYSR h* parlv after. 

LTV 


Share price (S) 


1&0 - 


17.5 

17.0 


16.5 


16.0 - • _ 
153 


153 - 



143 ■ — I- 


143 

Jan 1994 
Source: FT Graphite 


noon. 

In the secondary markets, 
the American SE composite 
was up 3.15 at 437.03, and the 
Nasdaq composite surged 8.73 
to 72U& 

At the opening, stocks were 
last off the mark and they 
gathered pace as the morning 
progressed. Investors were 
relieved by the earlier 
announcement that gross 
domestic product in the second 
three months of year had 
grown at a rate of 3.7 per cent, 
slightly less than economists 
bad forecast 

The news deflated growing 
concern over the potential of a 
stronger-tban-expected reading 
to damage share prices. Amkl 
the relief analysts began to re- 
evaluate the strength of the 
economy going into the third 
quarter, and the prospects for 
an early move by the Federal 
Reserve to lift interest rates 
again. 

The strategic thinking in the 
US Treasury market followed 
the same path. By midday, 
prices on the benchmark 30- 
year security had surged by 
one and a half points and the 
yield plunged below 7.40 per 
cent as traders rushed in to 
cover their bets that the GDP 
would exceed expectations. 

Amid the fanfare, bearish 
data from Chicago purchasing 
managers, suggesting higher 
price pressures in the manufac- 
turing sector, was largely 
ignored. 

With fears over rates put 


Mexico 


Mexican shares opened with 
heavy gains as investors 
reacted to the sharp rise of Tel- 
mex ADRs on Wall Street The 
1PC index of 37 leading shares 
gained 42J21 or 1.7 per cent to 
2.471.36 in volume of 18.4m 
shares. Telmex ADRs gained 
$1% to S61'A in New York. In 
the local market, Telmex L 
series gained L77 per cent 


Brazil 


Shares in Sio Paulo fell 1 per 
cent in lacklustre midday trade 
on continued profit-taking 
after a rise of more than 16 per 
cent since the introduction of 
the real at the beginning of the 
month. 

The Bovespa index of the 56 
most-active shares was off 427 
at 42,127 by 1pm. Volume was 
weak at R$1035m ($ll02mi. 


Bullion pressures $ Africa 


Gold shares came under 
pressure in afternoon Johan- 
nesburg as sellers gathered 
after the bullion price failed to 
recover from overnight lows. 

Other shares also drifted 
lower but no real selling was 
seen as sentiment held up 
after Wall Street gained over- 
night and posted gains in 
early trade yesterday. The 
overall index finished 20 softer 
at 5.652, Industrials lost 27 to 
6,407 and golds fell 28 at 2,138. 

Few fresh factors emerged to 
influence direction in the slow 
pre-weekend atmosphere. 


Gencor continued to tend 
softer as demand slowed after 
the announcement of its pur- 
chase of Billiton. It was 5 
cents softer at Rll.90. 

Anglos added R3 to R249, De 
Beers was 75 cents lower at 
Rill after falling on Nasdaq, 
and SAB Ten Rl to R87. 

Remgro shed 50 cents to 
R25.5Q and Barlows made 25 
cents to R34 in a late rally. 
Lonrho picked up 30 emits to 
of Thursday's losses to R9.75. 

Vaal Reefs shed K4 to R406 
and Kloof was 50 cents off at 
R5&50. 


EUROPE 


Dollar strength gives support to the continent 


aside, at least temporarily, 
stocks which are most sensi- 
tive to broad economic trends 
advanced. Among the Dow 
industrials, Caterpillar climbed 
$1% to $108%, International 
Paper gained $1% to $72V£ and 
Alcoa added $1% to $73%. 
DuPont, however, slipped S% 
to $59%. 

The improving fundamental 
outlook gave a lift to semicon- 
ductor stocks, too. Texas 
Instruments jumped $3% to 
$79, Micron Technology gained 
$2% to $37% and Applied Mate- 
rials added $2% to $45%. 

But technology stocks across 
the board improved, with 
Apple up $1% to $33% and 
Microsoft $1% ahead to $37%. 

Earnings news continued to 
trickle into Wan Street LTV, a 
leading steel maker, was 
marked up $1% to $18% after 
posting net income of 40 cents 
a share, nearly double the con- 
sensus forecast, inland Steel 
pushed $1% ahead to $38. The 
gains followed JP Morgan's 
recommendation to buy steel 
issues because of an expected 
price Increase from Chrysler. 

On the Nasdaq, Thursday's 
speculation about a possible 
takeover of Intergroup Health- 
care proved to be prescient, as 
Foundation Health agreed to 
buy the company through a 
$750m stock swap. Shares in 
Intergroup surged a further $10 
to $57%, adding 51 per cent to 
their value in two sessions. 
Foundation dropped $3 to $32. 

Canada 

Toronto was firmer in light 
midday trade on strength in 
metals, financial services, and 
co mmunica tions The TSE 300 
composite index was up 17.63 
at 4,167.44 in volume of 2L3frn 
shares valued at C$22020m. 

Nova led active stocks, up 
C$% at C$12% on 1.8m shares 
after Thursday’s news that it 
planned a major restructuring. 


The US played a major factor 
in lilting sentiment across the 
contine nt yest erday. 

FRANKFURT closed the offi- 
cial session with a 1 per cent 
gain in the Dax index, but was 
barely changed on the week. 
The index ended up 23.83 at 
2446.64. hi the after market the 
Ibis moved ahead to 2452.19. 

There have been additions to 
those brokers tumifig positive 
on the German market. Mr 
Eckhard Frahm of Merck 
Finck is hopeful of a summer 
rally, noting that the market 
made a 6 per cent during 
July, while Mr Julian Callow 
at Kleinwort Benson looks at a 
discount rate of 4 per cent by 
the end of the year, helped by 
favourable inflation and mone- 
tary data. 

Sector rises were seen in 
those areas which have been 
strong over the past week, 
including Deutsche Bank, up 
DM3 at DM731.50. which led 
the way with results on Tues- 
day. Lehman Brothers, 
although confident about the 
bank, thought that there was 
greater upside to be seen else- 
where, particularly in Dresd- 
ner which "commands a price 
to cash flow multiple of 3 3. 
compared with 4.8 at Deut- 
sche". Consequently. Lehman 
maintained its neutral, low 

risk rating 

The vehicle sector improved 
further Daimler up DM3JL50 at 


ASIA PACIFIC 


I FT-SE Actuaries She 

:re Indices 



Jid 29 

Homy dtngai 


1OL30 

THE EUROPEAN SERIES 
1180 1280 1380 1480 1580 Ctea 

FT-S£ Buranch 100 
FT-SE Eorofeadr 200 

1381 JO 
141313 

1391.46 

141326 

136332 138489 13S4JN 
141954 141988 141983 

1387.10 

142315 

138639 138756 
1420.12 14(561 



Jri 28 

Jll 27 Jut 26 

Jri2S 

M 22 

FT-6E EanoiA 100 
FT-SE EURfta* 200 


137Z12 

141054 

137088 1391 JO 

140388 142429 

138483 

142158 

1337.40 

142429 


Share prices (Graders) 
250 — ; 


Akzo Nobel 


*■» 1000 l&tiv no - 1SU1; ao - 1427J0 inMBef ISO ■ t» JB SOB - Mtsnr 



DM*02.50, BMW up DM4 at 
DM867.00 and Volkswagen DM5 
firmer at DM502. James Capel 
recommended a switch out of 
Daimler Into BMW, but main- 
tained its strong position on 
VW. 

MILAN found some reassur- 
ance in the day’s political 
developments and shares 
recouped part of the sharp 
losses semi earlier in the week. 

The announcement that Mr 
Silvio Berlusconi, the prime 
minister, planned to separate 
Ms political and business roles, 
together with news that his 
brother turned himself in 
to magistrates both helped to 
calm the nervous market. The 
Comit index rose 13.97 or 2 per 
emit to 709.76, but was still 23 
per cent lower on the week, 
reflecting the sharp fails on 
Tuesday and Wednesday. 

Industrial stocks lead a 
broad-based upswing, with Flat 
adding L150 to L6.940 and 
Pirelli adding L80 to L2£85. 

Mr Nicholas Potter at Cre- 


dito Italiano International com- 
mented that Flat was benefit- 
ing from its positive perfor- 
mance in its home and 

joint ventures abroad while 
there appeared to be a funda- 
mental review taking place of 
Pirelli’s prospects, which 
included its commanding posi- 
tion in the fast growing Brazil- 
ian market 

“The strong performance of 
corporate Italy is a welcome 
diversion from the market tur- 
bulence seen this week, which 
clearly came about through 
broader issues regarding the 
control of public finances." he 
said. 

PARIS was a late closing 
beneficiary of the US currency. 
The CA.C-40 index increased 
2L56 or 1 per cent to 2,074.9 9, 
up 1 per cent on the day and 
1.6 per cent on the week. 

Roussel Uclaf was a strong 
performer, the shares up FFr32 
to FFr603 following results 
which came out after the close 
on Thursday. Commenting on 


200 F — V- 


150 



100 * — 1 — * — 1 — •- 

Jan 1904 

Saucae FT GrapNn 


Jtd 


the data Goldman Sachs said 
that the first half figures were 
better than expected and high- 
lighted the positive fundamen- 
tals which supported that com- 
pany - strong underlying 
pharmaceutical growth, signifi- 
cant restructuring benefits, 
potential synergies with 
Hoechst, the parent company, 
strong consider- 

able overall scope for margin 
expansion. 

Eurotunnel rose FFrl.35 to 
FFr26.95, with some uncon- 
firmed reports suggesting that 
a limited and restricted alloca- 
tion passenger service might 
st art la ter in the summer. 

ZURICH was helped ahead 
by the firm dollar and prices 
received a further boost during 


the afternoon from the positive 
reaction of US markets to the 
the day’s GDP figures. The SMI 
index rose 2021 to 2^579.5, but 
was 0.7 per cent lower on the 
week. 

Investors continued to dis- 
play a cautious approach to the 
banks, ahead of half year 
details from Credit Suisse 
which came after the market 
had closed. CS Holding bear- 
ers, however, still added SFr6 
to SFr571 while UBS, reporting 
half year figures next week, 
also rose SFnS to SFrl,18L 

Roche certificates picked up 
SFr30 of recent losses to 
SFrt.320. 

Cychcals put in a strong per- 
formance with Brown Boveri 
adding SFrl6 to SFrl.229, 
Sulzer putting on SFril to 
SFr965 and Alusuisse rising 
SFT17 to SFr7Q2. 

Ares-Serono bearers put on 
another SFr30 to SFrTSO after 
Thursday's 16.5 per cent surge 
which followed news from Bio- 
gen, the US group, of positive 
prospects for its beta inter- 
feron treatment for multiple 
sclerosis. Ares is developing its 
own beta interferon treatment 
and also has the patent for the 
production process. 

AMSTERDAM made forward 
progress helped by late 
strength in the dollar, leading 
the AEX index up 2.99 to 40821 
on the day and 1.2 per cent on 
the week. 


There were further gains 
among the cycllcals with DSM 
and Akzo Nobel again featur- 
ing among the most heavily 
traded issues. Both groups are 
expected to announce gener- 
ally encouraging results next 
week, helped by an improve- 
ment in the chemical sector 
overall. DSM put on FI 1.40 to 
FI 142.90 and Akzo made FI 1.90 
to FI 214.40. 

A solid rise was seen in Hoo 
govens. the metals company, 
again on the likelihood that 
earnings will be boosted by 
prospects for economic recov- 
ery. The shares dosed at a new 
year’s high of FI 79.50, Up 
FI 2.30. 

STOCKHOLM was lifted by 
declining Interest rates and 
confidence on the outlook for 
corporate earnings. The Affors- 
vSrlden. General index rose 1.1 
per cent to 1,464.2, little 
changed on the week. 

Volvo was a favourite among 
Investors, up SKrlS to SKr760. 

MADRID posted a 1.3 per 
cent rise with the lower than 
expected US GDP data bring- 
ing a rush of demand during 
the afternoon. The general 
index rose 4.16 to 313.70 in 
solid turnover of Pta29.7bn. 

Electrical stocks were the 
strongest sector with Endesa 
rising 3 per cent to Pta6.130. 

Written and edited by John Pitt 
and Michael Morgan 


Renewed buying helps Nikkei erase week’s losses 


Tokyo 


Roundup 


Buying by public funds sup- 
ported share prices and the 
Nikkei average, which has 
been depressed by overseas 
selling, erased most of the 
week’s losses, writes Emiko 
Terazono in Tokyo. 

The Nikkei 225 index rose 
201.54 to 20,449.38, ma rginally 
lower than last Friday’s dose 
of 20,46239. 

The index fell to a day’s low 
of 20,318.16 In the early after- 
noon before rising above the 
20,500 level for the first time in 
a week to 20,517.10, the day’s 
peak. 

Tim fall in the yen against 
the dollar encouraged dealers 
and individual investors, while 
public fund managers were 
seen buying export-oriented 
stocks in the afternoon. But 
volume totaled 273.7m shares 
against 2fifim_ 

The Topix index of all first 
section stocks rose 15.95 to 
1,637.41 while the Nikkei 300 
gained 2J53 to 297.16. 

Gamers led losers by 799 to 
199 with 156 issues remaining 
unchanged. 

In London, the ISE/Nikkei 50 
index rose 7.64 to 1,333.79. 

Traders said investor confi- 
dence had improved as the 
Nikkei has remained above the 
20,000 level. 

However, trading was expec- 
ted to stay within a narrow 
range next week as most mar- 
ket participants are reluctant 
to buy stocks aggressively at 
higher levels. 

Export oriented stocks, 
which had been hit by selling 
from overseas investors, 
gained ground. Toshiba, the 
most active issue of the day, 
rose Y6 to Y733 and Hitachi 
Y13 to Y965. 

Nissan Motor rose Y22 to 
Y770 and precisian machinery 
companies also improved, with 
Canon up Y10 to Y 1,710 and 
Minolta adding Y10 to Y525. 

Profit-taking hit Ihara Chem- 
ical Industry, which rose 
Thursday on speculative buy- 
ing. The stock fell Y30 to 
YL270. 

In Osaka, the OSE average 
rose 237.68 to 22.736.49 in vol- 
ume of 14.4m shares. 


A positive mood prevailed in 
much of the region. 

TAIPEI advanced 1.6 per 
cent on the day on purchases 
of plastics, electronics and 
financial sector stocks, so end- 
ing a two-day correction. The 
weighted index gained 10747 to 
6,749.40, 4 per cent ahead cm 
the week. Turnover was 
T$100.5bn. 

Leading computer makers 
Microtek International and 
First International Computer 
both rose by the daily permit- 
ted seven per cent limit, gain- 
ing T$3J0 to T$50-50 and T$6 to 
T§92 respectively. 

Plastic stocks were strong on 
expectations of continuing 
international demand for pet- 
rochemicals, with Taiwan Sty- 
rene Monomer gaining TJ6 to 
T$93. 

SYDNEY climbed to its high- 
est level in seven trading days, 
as sentiment was boosted by 
options-related trade and 
encouraging economic data. 

The AH Ordinaries index 
rose 19.4 to 2,061.5, up 0.5 per 
cent this week- Turnover was 
A$740-&n. 

Brohers said news that the 
current account deficit, which 
narrowed to a seasonally 
adjusted A$L439bn in June, 
from A$l-E89bn in May, was at 
the lower end of market expec- 
tations. 

Foster’s Brewing dominated 
volume with 30.8m shares 
exchanged. The stock rose 2 
cents, or L8 per cent, to A$1.12, 
with most of the major broking 
houses involved In heavy 
options-related trade. 

Among gold stocks, Pacific 
Placer surged 22 cento to a five- 
week high of A$33.45 and 
Poseidon Gold added 9 cento to 
A$3-38, its highest share price 
in 14 weeks. 

North Flinders Mines, which 
earlier reported a 47 per cent 
rise in annual net profit to 
A330.01 million, was steady at 
AS8J36. 

HONG KONG finished mod- 
erately higher after profit-tak- 
ers pared early gains and the 
Hang Seng index added 80.15 to 
9.482JU, for a 3.6 per cent rise 
on the week. Fund buyers had 


pushed the index to a high of 
9,525 before profits were 
taken. 

Preliminary turnover 
dropped sharply to HR$L26bn 
from Thursday's HK$6.54bu. 

Among blue chips, HSBC 
rose HK$L25 to HK$93.00 and 
Swire Pacific gained HK|L75 to 
HK|63£0. 

Property developers also per- 
formed well with Cheung Kong 
advancing 60 cento to HK$37.90 
and Sun Hung Kai Properties 
climbing 65 to HKS50-25. But 
the real estate investor, Hong 
Kong Land, was a target of 
profit-taking, losing 15 emits to 
HKS20.50. 

KUALA LUMPUR overcame 
a round of profit-taking and 
continued its advance for the 
sixth straight day. 


The composite index closed 
1.21 higher 1.027 .51, taking the 
week’s rise to 2.7 per cent 

Volume swelled to 215m 
shares from Thursday's 158m, 
boosted by a lower-than-expec- 
ted inflation figure for June 
and overnight gains in Wall 
Street 

Pan Malaysia Cement 
jumped 76 cento to M$5.60 after 
its announcement of a two-for- 
one bonus issue. 

SEOUL finished higher after 
an afternoon spurt, led by 
gains in several blue chips and 
haulri-ng issues and the com- 
posite index closed 7.45 higher 
at 933.65, 0.6 per cent down on 
the week. 

Posco and Samsung Elec- 
tronics were limit up, adding 
Won25,000 each to Won73,400 


and WonPl.OOO respectively. 

SINGAPORE came back 
from its Intraday high, while 
trade in Malaysian stocks dealt 
over the counter benefited 
from renewed rumours of an 
impending election announce- 
ment in Malaysia. 

Some resurgent interest from 
Japanese funds in Singapore 
bank stocks was reported 
although brokers were still 
mixed on the market's near- 
term outlook, seeing a pro- 
longed consolidation still on 
the cards. 

The Straits Times Industrials 
index closed 5.18 higher at 
2^06.42, little changed on the 
week. 

MANILA finished slightly 
higher as PLDT and Philippine 
National Bank showed 


strength. The composite index 
put on 12.07 to 2JM3.21. up 3.4 
per cent across the week. Turn- 
over was 1.26b a. 

WELLINGTON improved on 
light volume, the NZSE-40 capi- 
tal index up 18.23 at 2,027.18, 
unchanged on the week. 

Telecom rose 10 cents to 
NZ$4.78 ahead of going ex divi- 
dend on Monday. 

SHANGHAI'S A index fell 
another 7.38 or 2.2 per cent to 
close at a new record low of 
328.84. The decline came ahead 
or a statement from the stock 
exchange authorities announc- 
ing a suspension of the issue 
and listing of new shares in 
Shanghai and Shenzhen for the 
rest of this year, in an effort to 
stabilise and standardise the 
markets. 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


RISES AND FALLS 


On Friday 


Option 


— Cali Ms - — 

Oct Jan Afr Oct Jhi Apr 


Option 


- — Oris— Ms 

Ml Nov M tag Mo M 


On the week - — — 

Rises Fafls Some 


/■aHjora 

r») 

*9* 

ran 

ABM 

c*57) 


540 54 - - 714 

sag m - -27M 
260 21% 28% 33% 12 
2B0 11% IBM 24* 23% 
50 9M11M12% » 1 
60 3 514 7* 7 


- - Hanson 24020% 25 29 1 6% 914 


18 2IK 
29 32 
4 S 
8% 10% 


btMnays 420 

r<22 > 

Ml MBA 

r«*> 

Boots 

rs2M 


Z7 36 46% 21 29 34% 
400 11 19% 29 46 52% 57% 
390 33% 41% 49% 13 20% 25% 
420 T7% 27 34 20% 35% 40% 
500 44% 52% B2 11% 19 24 
SSQ 16% ISM 38% 35% 46 49% 


BP 390 35% <3 49 10 15% 19 
1*412 I 420 W 20% 39% 24 29 33% 
MMStsd 140 22 m 39 3% 6 9% 

C157 ) 160 0 13 19 10% 14% 17 

Bass 550 31 46% 47% 21% 37 42 
(*S52) 600 11% 19% 2B% 54% 71 74 

0**0* 420 32 42% 52 17 25% 30% 
r«9 ) 460 14% 24% 31% 41% 48% 53% 

CooWtt SOD 49% 56% G5% 11% 21 2B 
rS26 ) 550 IS 28% 30 a 46 51% 

GMiaUdOD 500 5«*64M6S% 8% >5 21% 
<*547 ) 560 22% 34 41% 30 34 47 


M3 

(*834) 
Nntffetar 
rSD3 J 


600 53 73 65% 23 
8S0 28 47 69 49 
600 31 4454% 27 
550 12M 22% 33% 58% 


Laid Sear 660 33% 42% 53% 18% 
rt58 ) 700 12 19 29% 48% 

MBits 8 S 420 22 30% 3S 15 
) 460 6% 13% 20% 41% 


r«e I 


420 

460 


10 


48 51% 
27 S3 


32 47 
58 72% 
32 37 
63 67 

28 28% 
55 50% 
22 25% 
46 48 
17 26 


SMWuy 380 3/42 % 
r<06 ) 420 21 2M 

SMI Tram 700 «%BB% 


15 

36 37% 50 

16 21 25 
30 35% 39% 
IS 21 31% 


1*730 ) 750 17% 29% 37% 42% 48 57% 

Sbntouss 220 10 21 25 9 13% 16% 

C223 ) 240 711% 18 22 25 28% 


II 
r77 > 


FT-ACTUARIES WORLD INDICES 


Jointly camp** by The Fcmndrt Times Ltd. Goldman. Sacho & Co. and NaJWbst Securities Ltd in c or»rettan «*th the Inettute of Actuaries snd trie Faculty of Actuaries 

NATIONAL AND 
REGIONAL MARKETS 


70 12 1410% 3% 5 5% 

60 5% 8 11 8 9% 11 

1000 40 82% 75 28% 36% 50 
Cl 008) 1050 n 38 50% 54% 64 77% 

ZBnaca 700 80 72 81 14% 23% 35% 

1*744 ) 760 25% «% 53% 37 46% 60% 

OpOoa Aug Rot Mi Aug Nw Fab 


THURSDAY JULY 28 1094 


WEDNESDAY JULY 27 1094 


Figures In parentheses 
ahow nun oar ol (nes 
of Mot* 


US 

Dollar 

Index 


Day's 

Change 

ft 


Pound 

Storing 

(now 


Yen 

Index 


DM 

Index 


Australia 166) 

Austria (17) 

Belgium G71 

Canada (105).. 

Denmark (33) 

Finland B4) 

ftTOo 197) 

Germany (SB*— ... - 

Hong Kong 66) 

freland (14) . 

(61) - 

Japan i*Qt) 

MdayiiaR® 

Maucoiltn 

NrtherJand C?7> 

Now Zealand (14) 


171.72 

165.73 

.. ... 173.C9 

126.91 

27022 

16069 

176.01 

140.01 

382.60 

195.41 

84 07 

163 38 

.. . . 485.56 

- 2071.18 

-207 .96 

-67.50 


Nwvwy (23) 20021 

Stogmtora (4*1 . 344.77 

South Alma (59) .290.92 

Spain (4?) 14361 

SrwxJcn (XI- 21648 

Swmertand (47) . 156.42 

Unrwa Kingdom (RM) 193 60 

USA (519) - - 185 50 


-0.4 

-13 

-0.1 

0.2 

-0.4 

-1.4 

-03 

- 0.8 

0.0 

-0.7 

02 

- 0.6 

1.2 

1.0 

02 

-13 

0.3 

Q.a 

- 0.1 

-as 

-1.5 

02 

0.5 

(LJ 


10620 

179.75 

167.72 
122 83 
261.52 

155.72 
170.35 
138-22 
37030 
109 13 

8137 
156.1 1 
40995 
2004 5* 
201-7 
65.33 

201.51 
333.68 

281.56 

138.99 

209.52 
151-38 
187.37 
179.61 


107.48 

116.25 

108.47 
70.43 

169.13 

100.71 

110.17 
89.39 

239.48 

122.31 
52.82 

10235 

303.82 

1296.39 

130.17 
4IL2S 

130.32 
215 BO 
182.09 

89.89 
135.50 

97.90 
121.16 
116.16 


141.01 
152.51 
142.30 
104J1 
221. IS 

132.12 
144 S3 
117.27 
314.19 
160*7 

69.04 

134.15 

398.73 

1700.77 

17077 

55.43 

17tL97 

283.12 
238.89 
117.93 
177.77 
128.44 
156.96 
152.39 


EUROPE (720) .109.96 -0.1 164 *9 106.30 13956 

Nat»C (1161 . 214.67 -1.1 207 76 13436 176.28 

Paate Basin (749) 17136 - 0.5 16585 10736 140 72 

Ewo-PjoSc (1469) .. I706S -03 105.16 10681 140.13 

Noth Amorlca «2<M 18194 0 4 17009 11180 149*0 

Europe E* UK (516) 15336 -0.4 140.43 9599 125.93 

PaoSc Ex. Jam (280).. 250 70 0.1 242 6* 156.92 2U5.B7 

Wwtd Eh. US (1651) 171.75 -02 16623 107.50 141.0* 

World Ex UK(19G6) 17355 -01 167.96 10863 14Z51 

WtBklE* So. Af 12111) 174.61 04) 160.99 109.29 14138 

Waiw Ex. Japan (17Q1) 16368 0 2 17 7 **7 115 10 15100 

1>»0 tVortil Indnx 12170).. . 17633 0.0 ICO 60 109.7* 143.97 140.99 


Local 

Local 

Gross 

US 

Pound 

Curroncy 

96 chg 

□hr. 

Dolor 

Stertng 

Index 

on day 

Yield 

Index 

Index 

155.05 

0.0 

556 

17536 

16852 

152.42 

-1.1 

1.05 

188.13 

18519 

138.93 

01 

358 

173.40 

187.92 

126.88 

05 

2.67 

12654 

12564 

228.11 

-02 

150 

27155 

26568 

175.73 

-1.0 

0 50 

163-27 

16&11 

148 68 

-02 

256 

17a 83 

17155 

11787 

-05 

1.76 

144.08 

139.46 

378.46 

0.0 

3.19 

38550 

370.43 

18189 

-05 

356 

19652 

10051 

99.63 

05 

1.52 

83.88 

8124 

102-25 

OS 

075 

>64.27 

15958 

485.00 

15 

1.71 

479.83 

464.69 

7695.97 

1.6 

1.7* 

2035.16 

197059 

166.25 

0.4 

3.38 

207.48 

20054 

59.70 

-12 

4.01 

68.39 

6653 

194.64 

0.0 

1.70 

20753 

20058 

239.83 

DO 

1.76 

344.78 

33350 

290.71 

02 

2.14 

29158 

28509 

14151 

-0.8 

4.07 

14454 

14028 

248.52 

-1.1 

1.60 

219.72 

21570 

129 65 

02 

1.87 

156.03 

151.10 

187.37 

0.4 

4.03 

19268 

16650 

185.58 

0.4 

289 

18452 

17859 

154 14 

00 

3 01 

170.05 

164.68 

210.51 

-0.7 

1.41 

21751 

21016 

113 20 

0.4 

1.07 

17514 

166.71 

12895 

0.3 

1.88 

171.13 

165.73 

101.55 

0.4 

250 

18151 

17S.49 

134.15 

-02 

541 

153.91 

149.05 

224.40 

02 

2.07 

250.46 

24555 

132.37 

0.3 

1.90 

17518 

16574 

145.17 

0.3 

2.06 

17357 

16519 

147.93 

0.3 

255 

17454 

169.12 

176.12 

05 

590 

183.49 

177.69 


Van 

bidex 


DM 


DOLLAR MDEX- 

Local Ye 

Curancy 52 week 52 week 


SxJax index rtrfi low fevroig 


106.79 
11655 
107.43 
78.40 
16835 
101.1S 
10943 
8933 
23638 
121 »* 
51.97 
101.77 
29738 


14133 

154.14 

142.07 

103.76 
222 2 4 

133.77 
144.72 
11601 
313.41 
161.27 

88.7* 

134JS0 

393.16 


15609 

154Q5 

136.78 

126.46 

22652 

177.55 

14022 

11601 

37936 

183-29 

9930 

101.77 

479.19 


189.15 

195.41 

176S7 

14531 

275.79 

16627 

18637 

14707 

50656 

20633 

97.78 

170.10 

621.63 


138.16 

155.68 

14382 

12054 

20987 

9988 

162-42 

1(369 

27641 

15785 

5788 

12484 

34368 


139.16 

18032 

14781 

12589 

20987 

10187 

152.42 

11685 

27787 

15985 

6989 

16389 

34888 


197089 126085 1667.49 7575.46 2647.08 158283 160363 


12355 

4237 

12357 

21361 

180.46 

89.73 

13313 

0686 

11087 

11450 


17301 
5304 
17304 
28250 
23686 
11387 
18303 
12784 
15788 
151 A3 


16753 
6341 
19351 
23980 
290.00 
142.37 
251 21 
12983 
18360 
164.82 


20786 

7759 

20881 

37392 

292.64 

155.79 

23185 

17656 

21486 

19684 


18782 

5371 

15781 

25305 

17383 

11333 

17318 

127.14 

17589 

17886 


16784 

6371 

159.42 

2S305 

20374 

11378 

17316 

12328 

17300 

183.00 


Qnad Hr 

390 

a 

41 

48% 

2% 

12% 19% 

T411 1 

<20 

a : 

23% 

31% 

14% 

26 34% 

UrixtM 

1BD 

12 : 

20% 

25% 

2 

9% 11% 

069) 

160 

2 

10% 

M% 

13 

22 23% 

uaaseuas 

300 

27% 

36 

<2 

1% 

10% 13 

074 1 

330 

*% 

1BH 

25% 

11 : 

24% 27% 

Optkn 


sw 

OCC 

■tar 

Sen 

Dec Usr 

Raoaa 

130 

12% 

16 

18 

5 

S% 12 

038) 

140 

6% 

10% 

13% 

10% 

15 17% 

0|fta 



Noe 

Mi 

At* 

Nor Fee 

8AM8 

460 

37% 

SB 

72 

3 

22 31 

035) 

500 

9% 

37 

51% 

19 

40 50% 

BAT Ms 

420 

28 36% 

47 

4 

16% 21% 

043 ) 

460 

3 

18 

20 

31 : 

39% 43 

BTR 

360 

14 

25 

33 

3% 

16 19 

089) 

390 

211% 

W% 

23 33% 36% 

MlBtaon 

360 

14 

29: 

31% 

3% 

11% 17 

(*309 ) 

390 

2 13% 

19% 

23 28% 36% 

Cate) Scs 

420 

19% 

29 : 

S9H 

4 ■ 

18% 20% 

r«o ) 

460 

1% 12% ! 

22% 

31 41% 43% 

MnBK 

600 

49 

70 

as 

2% 

16 28 

r«4) 

6S0 

11% 

40 

54 

17% 

37 47% 

Sutooess 

420 : 

mm 

« 

1% 

12 16 


rzai 

260 

4 

13% 

17% 

5% 

15 

18% 

Lasom 

134 

15% 

22% 

- 

1 

7 

- 

P147) 

IS4 

3% 

IT 

— 

9 

17 

- 

Lucia Mb 

180 

T7 

24 

28% 

1% 

9 

12 

n93) 

200 

4 

13 

16% 

9 

19% 

23 

P*0 

650 

17% 

39% 

55 

11% 

39 

48 

(*656 ) 

700 

2 

18% 

33 

48 

72 

79 

Hfthgton 

190 

15 

21 

25% 

1% 

1 

11 

H92 ) 

200 

2% 

9% 

15% 

11 

17 

21% 

Pnxtatft* 

300 

12 

21 

28 

4 

16 

19% 

raos > 

330 

2 

t 

15 

2B 

» 

37 

RT2 

950 

24% 

55% 

72% 

9% 

35% 

48% 

("863 ) 

BOO 

4 

31 

48% 

43 

65% 

73 

Rottm) 

500 

43 

09 

85% 

1% 

10 

25 

1*538 ) 

550 

7 

27 

88% 

18% 

41% 

50% 

ftoyal rises 

240 

13 

23% 

29 

3 

13» 

16 

r»8) 

260 

3 

14 

19 

13% 

24% 

27 

Tara 

220 

14% 

21% 

Z7 

2 

9% 

13 

(*231 ) 

240 

4 

12 

16% 

12 

20% 

23% 

Wodatano 

183 

5 

15 

18 

4% 

11 

14% 

ri84) 

200 

1 

7% 

11% 

18% 

22 

25 

WBfema 

354 

13% 

24 

— 

4 

15% 

- 

(*381 > 

384 

2 

10% 

- 

24 

23% 

- 

Option 


Oct 

Jaa 

** 

Od 

Jan 

Hr 

BAA 

950 

45; 

59% 

78% 

34 

48 

52 

C9S0 ) 

WOO 

22 

W% 5B% 84% 

73 

79% 

ItaaiesWa 

500 

35 

42 

50 

16 

24% 

29% 

PSI3) 

550 

13 

19: 

27% 

44% 

52 

58 

Opdm 


Sep 

Dae 

Bar 

Sta 

Dec 

■tar 

Abbey Km 

390 

18% 

29 

37 

18 

21 

29 

rs«) 

420 

7 ' 

15%. 

23% 

38 

30 

47% 

Anatrad 

25 

7 

7% 

8% 

1% 

2 

3 

no i 

30 

3% 

5 

8 

3% 

«» 

5% 

B&r±rp 

550 

23: 

38% 

47: 

w%; 

33% 

44 

(*552 ) 

BOO 

8% 

17% 

27 1 

62% 1 

37% 

76 

Brie C*de 

300 

23 

31 

30 

12 

17: 

21% 

nn ) 

330 

8% 

17% 

25 

3o : 

W%: 

38% 

Brush Gw 

280 

17% 1 

20% 

2B 

6% 

14 

16 

neaj 

280 

7% 

11 

16 

17 

26 

28 


160 

M% 

22 25% 

to% • 

13% 

17 

H83) 

200 

813% 17% 

22 25%: 

ZBH 

MUom 

160 

15% 1 

18% 

24 

4% 

7 

8% 

nasi 

180 

9 1 

10% 14% 

15% • 

18% 

10% 

Lonrtio 

130 

12 

17 

20 

5 

8 

11 

H35) 

140 

6% 

12 

15 

9% 

13 

16 

NaB Power 

420 

38 48% 

96 

9 15% 

20 

t*448 ) 

460 

15 

26 34%i 

HS% 34% 

39 

Scot Power 

360 

21 

31 

38 

15 

20 25% 

(“373 | 

390 

7% 

18 22% 33% 37% 42% 

Seans 

110 

9% 12% 14% 

3% 

5 

7% 

(*115) 

13) 

4% 

7 

9 

8% 11% 

13 

Forts 

220 20% 24% 29% 

5 11% 

14 

("231 ) 

240 

9% 14% 19% 

15% 

22 2«» 

Tarmac 

MO 1 

14% 

19 22% 

5% 10% 

13 

1*148 ) 

160 

5 

B 

13 

17 22% 

25 

f7icnj Ofl 

1000 61% 88% 

104 23% 

38 53% 

P030) 

1050 33% 

81 79% 47% 

63 

77 

TSB 

200 12% 18% 

22 

6% 12% 

17 

(*200) 

220 

4% 

11 

13 22% 25% 

29 

Tonfehs 

220 13% 13% 24% 

9 13% 

17 

rw ) 

240 

5% 11% 15% 22% 25% 

29 

Weflcome 

BOO 55% 74% 80% 

16 

29 

37 

(V33 ) 

630 27% 48*82% 

39 

54 

62 

Option 


Oct . 

tan 1 

tar 

Oct jen , 

ta 

Obxu 

550 

46 58% 

65 

30 39% 

51 

(■573 ) 

600 19% 33% 

41 

61 

69 

80 

HSBCTSpda 

750 

BB 

89 : 

1 OB 40% 56% 

79 

r774 ) 

BOO 41% 64% 88% 

B7 

62 1 

106 

Reuters 

*52 

29 

— 

— 

23 


— 

r4® i 

475 

23 

- 

- 

29 

- 

- 

OPOoo 

1 

tag Nn Fab Aog Nor Mi 


British Raids 

20 

43 

8 

S3 

247 

45 

Other Fixed mterast 

0 

6 

9 

2 

10 

55 

Mnarai Extraction 

73 

44 

03 

294 

283 

423 

General Manufacturers 

118 

148 

385 

653 

606 

1.990 

Consumer Goods 

44 

37 

109 

225 

103 

542 

Services 

76 

114 

313 

441 

460 

1.612 

UtBWea 

14 

24 

7 

80 

87 

52 

Financials • 

07 

105 

197 

370 

497 

978 

Investment Trusts 

142 

41 

283 

617 

22S 

1.488 

Others 

SO 

43 

39 

168 

279 

208 

Tot* 

604 

803 

1,433 

2.920 

2.091 

7.393 


Dm baaed on those companlB a luted on Sie London Snore Service 

TRADITIONAL OPTIONS 


Cals: Arcon ML. C o v e H il da. Division Grp-, Eats. A Oan. Pit.. GEEST. Lon. Mot. 
Prop, Lloyds Bank, Modem. HBgnte, Mkror Oryx, NHL fPrfJ, Ponnrfr, Trafalgar 
Hasu, Tidkmr 03 Puts & Cafes: Covsrdala, MBgate, Shoprttn. 


LONDON RECENT ISSUES: EQUITIES 


saue Amt 
price paid 

P UP 

MM. 

cop 

tOnO 

1904 

Hgh Low Stock 

Closa 

price 

P 

W- 

Net 

dhr. 

Div. Gra 
coy. yld 

WE 

not 

re 

F.P. 

21-9 

89 

83 Baita GW Stai Wts 

67 



_ 

_ 

_ 

18 

FJ». 

5.18 

31 

21 Coned 

28 

♦1 

_ 

* 

.p 


- 

FJ>. 

200 

50 

53 Enag IMS Country 

58 


- 

- 

- 

re 

- 

F P. 

3*0 

34 

26 Do. warrants 

34 


- 

_ 

_ 

_ 

220 

FJ>. 

1100 

227 

220 Eumdtftr 

22S 


WN&5 

09 

4.7 

17.6 

175 

FJ*. 

242-0 

203 

197 ExcoTVL 

197 


LB-4 

22 

SA 

10.7 

- 

FP. 

690 

71 

89 Freeport 

70 


- 

. 



- 

F.P. 

59.4 

285 

238 Ideal Hardware 

201 

-3 

N&4 


3J 

167 

- 

FP. 

- 

77 

63 JF FI Japan Wits 

71 

41 

- 




3 

FP. 

1.73 

31* 

3 John MarcftNd 

3«« 


re 

- 

re 

_ 

100 

F.P. 

606 

38 

04 CM MuluB SA 

98 



_ 



- 

FP. 

6.16 

45 

43 Do Warrants 

44 


_ 

_ 



23 

FP. 

10.8 

31 

29 Obis 

29 


_ 



re 

§90 

FP. 

105 

95 

93 Pannier 

04 

-1 

N2.78 


3.7 

re 


FP. 

0*8 

13 

5*2 Do. Warrants 

13 


_ 

_ 



- 

FP. 

1.23 

39 

39 PefroceUc 

39 


_ 

_ 



- 

FP. 

1181 

95 

91 SrSnxto japen G 

94»* 


- 

_ 

re 

re 

- 

FP. 

125 

51 

42 Do Warrants 

51 

_ 

_ 

re 



FP. 

44-8 

92 

aa>7 Sawder Larin 

89 

-*2 


„ 

re 


- 

FP. 

002 

44 

42 Do Wts 

43 


_ 


re 


100 

F.P. 

245 

99 

96 Share HY Sn* C 

99 


_ 

_ 

re 


- 

FP. 

1J» 

14 

11 Sth Com try Hras 

13>2 


_ 

_ 

re 


100 

FP. 

352 

07 

97 TH Euro Gth Pig 

97 


_ 

_ 

re 


- 

F.P. 

- 

14 

8 >2 1% Prop Wrts 

10>2 


- 

_ 

re 


272 

FP. 16910 

285 

260 31 

291 


N0-64 

1.1 

24 

33.B 

- 

FP. 

2.72 

35 

29 Tops Esa Wts 

34 


re 




- 

FP. 

501 

49 

34 VkfeoLogic 

42l z 


_ 

_ 

re 


140 

FP. 

64* 

169 

148 Yates Bros Wine 

166 

+1 

13JQ 

Z7 

2J3 

205 


RIGHTS OFFERS 


Vssub 

price 

P 

Amount 

ptad 

up 

Latest 

Ranun. 

dale 

1894 

FBflh Low 

stock 

15 

M 

2/9 

5pm 

1*2pm 

Bolton 

- 

its 

1318 

125pm 

61pm 

Charier 

40 

M 

25/8 

5pn 

2pm 

Excdkur 

120 

Nl 

1/9 

28pm 

18pm 

HneUst 

- 

NI 

- 

6pm 

4pm 

Freeport 

24 

w 

2sn 

3pm 

2pm 

Helena 

9 

w 

3/B 

4w>m 

Itpm 

Paramount 

130 

Nl 

14/7 

26pm 

9pm 

Rlcado 

190 

Nl 

12/9 

23f»n 

20pm 

Wadctnglon (J) 

73 

Nl 

5/8 

3pm 

Itptn 

Wataa Oty of Lon 


losing «r- 
prtca 
P 


(**43 ) 
GEC 

r» i 


460 S% 
280 6% 
300 1% 


16 27 21 32 36 
18 22% 4% 12% 16% 
9 13% 21 25 28% 


MHimce 

(192) 


180 14% 22% 27 t% 8% 12% 
200 3 12% 17% 11 10 22% 


FINANCIAL TIMES EQUITY INDICES 

Juty 29 Jtiy 28 July 27 Jidy 26 July 26 


Undadysip eaewBy prica. Pren 


105.35 

134.45 

10665 

10682 

11327 

9585 

155.17 

10367 

10759 

10119 

11388 


13983 

17781 

14185 

14082 

14348 

126.11 

20581 

14187 

14289 

14309 

15084 


154.10 

21286 

111.77 

12361 

180.82 

134.41 

22394 

132.00 

144.71 

147.45 

17586 


17858 

22360 

176.86 

17389 

192.73 

157.47 

29321 

174.76 

17550 

17356 

19580 


14306 

16288 

134.76 

14388 

17587 

125.70 

18300 

14558 

15686 

16054 

16784 


14306 
154.11 
16344 
151.66 
178 A3 
12685 
18300 
15286 
16083 
16183 
1B784 


-My SB . Tod c m tt mxc 41.7*a Odbc tadin 
A* 29,447 


IHbbi 
131pm 
2^tpm 
23pm -1 
5pm 
2 '2Pm 
Npm 
flora 
20pm 
t*pra 


ago *Ktfi tray 


FT GOLD MINES INDEX 


% chg JU Juf Tear 

so day 27 29 ago 


i (36) 199086 -M 198341 199311 292489 


3002.41 

755534 

159497 


+05 

+05 

-12 


299957 291381 282182 
264187 254354 238T58 
1614.77 159350 174287 


ess Ar 

52 «eek 

MB ft 

M*i lew 

2.12 

2387A0 152268 

441 

344080 190223 

2J03 

301X88 183X18 

081 

2039-05 136X00 


Orthay Share 2389.9 2399.1 

Ort. t*v. yWd 421 4.19 4-20 4.15 4.17 3 £3 

Ban. yfcL % Ml 5.66 5.84 584 5.59 5.61 4.74 

P/E n*k> net 1384 18.81 1389 1308 19.00 27,00 

P/E ratio nil 1959 1388 19.54 1984 19.75 2484 

"For IBB*. OtSnary Share tadax since wsfc d nn: hlgft 27136 2/02/94; fa. ana smZT 
FT QrAiory Be* Mn tesg dm ■«»*** 2OW*0 

Cfctflnasy Share hourly change* 

Open 880 1080 1180 1200 


446 343 

M5 382 

SS ,7J9 

30 - 80 1381 


1380 1400 1S80 irtra* . M[|t| 


Low 


225 


16883 1086* 143 68 148 50 17B87 15386 16156 


pwntft l»u Fauna* Tunes UrWal, OASnSK SeM anS Co and rtarttasl Soob*o 9 Umied >88/ 
un*rt pnan one u r u iM uti * Mr ms stun 


AMca (IQ 
Naariads A 
North Ameda (IQ 
CaptriaM. Tire FMascU Times Lkrtead 189*. 

Figures ki bretMs *» nnbe ol ui tnp a i in . BoSb US tin ier j . Boo Vnfcjaa: TOOOLOO 31712*2. 
Predecessor GcM lArea Mesc Jily 29c 2395; (tort changer -95 poH* Yere ago: 2*9-2 
Late* prtree am a m l nw tor Ms staton. 


2407.0 24030 2405.8 24018 24028 2402.6 2407.7 23888 =>*878 311QJ~ 

Ji4y29 Juty28 Ji4y 27 My 28 jmu m 

SEAQ bargains 


s 23833 23.S6S 23845 25537 

Equity turnover ffrajr - 13838 10548 879.7 

Baity bre^Birert 26.109 20599 28.471 

Shares traded tml)T 5230 464.7 40Bia 

T BcUhg MhikiM buskwas and 


Yr, 


*818 

10838 

33/480 

4088 


41,738 

17230 

45896 

8778 






FINANCIAL TIMES WEEKEND JULY .WJlILY 31 IW4 


\l 11 


LONDON SHARE SERVICE 


TtMfttftBkV 


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no.: 

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lift *3 
lift *2 

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nan -8 


•flias 

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B2 48 
831*4 77ft 
401 344 

lift 62 
171 HI 
Ml 1 ; BO 
143 91 

18BV 13ft 
» 76 

5ft 4ft 
39 2B 
*7781. B36b 
*286 227 


210 +1 349 m 

26ft ft 302 23ft 
3ft ft 4ft 2ft 
IWb* ft El JO £1071* 
m 220 152 

a — a iab 

300 ft 36ft 240 
63ft -lib 710 40ft 

Ittblil ^ irelf 124^ 
7871. -ft 822^ 61 ft 
5331. -ft 57ft 466 

221 aft IBS 1 * 

J2 — 34 16 

era* +2 tdb sta 

141 *184 lift 

162 -2 188 137 

22181 +2 287 1ST 

182 -3 220 1B0 

SB -1 78 53 

MS -3 -3BB 330 
22181 -3 283 213 

163 -2 208 151 

7ft *2b 124 74% 

167b ft 13ft 108 

884 H40 245 

294 *1 *31 4b 24ft 

11781 124 83 

Ift 13*7 10 

382 -5 *414 b 32B 

147«a ft ITS 13ft 


45 175 
35 - 

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6.4 384 

35 275 EO 
67 145 
1.1 

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-or 1094 Us TM 

Me# - Ngft tor CBOBn S* I 

342 b 44 486 307*2 8580 31 

820* -19 717 537 1572 45 « 

6495 -134 mh 588 1,888 45 1. 

60&d -3 73ft 534 1.308 4.7 I 

718b) -7 850 635 8635 42 I 

HU -6 767 547 1792 4.4 11 

447 -4 SOS 4041; SJ21 35 11 

88781-13 an 588 8405 45 ! 

M7 -S 421 23 BB75 4.1 i 

874* -4 008 587 1,104 43 1 

91081 -5 582 440 4523 31 1! 

388 -2 477 322 1515 44 71 

37ft -3*2 486 337*2 3547 45 II 

SKi +3 *436 2SS 913.1 4.1 1 

STM -I 825 501 8915 4.7 < 

60* -14 T4B 551 7915 4fi i 

048*1 -9 74ft MO 1,730 4.4 U 

827BI -I 72ft 532 1508 4.7 11 

1C & ELECTRICAL EQPT 

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Prtca - hu to Cm&a Grl f 

£6011 -it S7i »512 159 15 

91 98 83 81J 

in — ISO 163 885 15 IS 

30 ft 90 28 1744 21 

tt — 73 46 141 tO 1* 

tt — *30 24 205 

Oft -1 94** 78 SU 1.1 21 

2138! — 281 213 465 15 

402 4ft 471 378 1419 65 2S 

122b ft 160*2 1174. 2165 15 

MB » 238 275 45 H 

10 — 17 10 658 - 31 

42M — *530 411 qu 3.1 1) 

312 — *380 305*2 6803 25 17 

1ft* — 20 14*2 429 15 1! 

ft — *16 8 752 


— 67 

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309 1402 
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412 805 

54 165 
305 8214 
473 74819 
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130 962 
£23 2248 
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£27*1 B5SB 
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— 31*s 143, 

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Z67 +2 227 264 

4a — 522 451 

741* BOB 0B1 

SB +1 S27 4S1 

MB — 184 141 

TO -4 305 234 

203 — 220 203 

37*rf — 4ft 22 

21 — *j* a) 

480 -5 548 455 

121 *5 *264 108 

VEHICLES 

♦ or 1084 
Me# - hta nr 

44 *68 36 

288 263 233 

in ._ ns in 

118 116 Itt 

810* *880 474 

208 *1 *06 160 

13ft 186 12ft 

•ft — *6ft 8ft 
15 — 1ft 12 
231 tl 243 ISO 

27* — 2ft 17 

as ^* h 3 q7 » 

328 338 298 

020 -5 *632 Sift 

•1* 164 81 

418 08 3*1 

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1ft — 88 25 

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296 3a S3 

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16W m 140 

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■ ; »' I » 


iWorid 
i Leader 
| in rolling 
gl bearings 


FINANCIAL TIMES 

Weekend July 30/July 31 1994 


mmi 


Wiring SpecU':j:i 


Berlusconi moves to head off 
conflict of interest accusations 


By Robert Graham in Rome 


Mr Silvio Berlusconi yesterday 
announced the creation of a spe- 
cial c ommiss ion to distance bis 
business interests in the Fin- 
in vest media empire from his role 
as Italian prime minister. 

The decision was taken with- 
out direct consultation with Pres- 
ident Oscar Luigi Scalfaro, the 
president's office said last night 

It came just after Mr Berlus- 
coni's younger brother, Paolo, 
surrendered to anti-corruption 
magistrates in MSan to answer 
charges of paying bribes to mem- 
bers of the Guardia di Finanza. 
the financial police. 

Mr Berlusconi's move, designed 
to avoid an increasingly damag- 
ing conflict of interest that has 
undermined the credibility his 
government, was greeted with 


cautious relief by the financial 
markets. The lira strengthened 
marginally and rose above Ll.000 
to the D-Mark. 

Outlining his initiative, a grim- 
faced Mr Berlusconi implicitly 
admitted he had underestimated 
the problems created by his own- 
ership of Fininvest. Supporters 
and opponents agreed he had 
bought some breathing space for 
his embattled government 

Mr Gianfranco Fini. leader of 
the neo-fascist MSI/National Alli- 
ance, and a key partner in the 
rightwing coalition commented: 
“Mr Berlusconi’s decision is wise 
and just, and makes things 
clear." 

Under Mr Berlusconi’s pro- 
posal. Mr Scalfaro - in conjunc- 
tion with the speakers of the two 
houses of parliament - will nomi- 
nate a five-person special com- 


mission. The commission will 
include the head of the media 
watchdog body and the chairman 
of the anti-trust commission. 

The new authority will monitor 
all potential conflicts of interest 
that might affect government 
business and the affairs of the 
Fininvest group, Italy’s second- 
largest private holding with turn- 
over of Lll,600bn (£4 ,801m) and 
net debts of LS^OObn in 1993. 

The commission will supervise 
the activities of an administrator, 
appointed by Mr Berlusconi, 
whose task will be to look after 
the prime minister's proprietary 
interests in Fininvest This is a 
more restrictive approach than 
Mr Berlusconi expected. 

Last night. Mr Paolo Berlus- 
coni’s lawyers were quoted by 
Ansa, the national news agency, 
as saying their client had admit- 


ted paying 1330m to the Guardia 
di Finanza over inspections of 
the balance sheets of three Fin- 
invest companies. They insisted, 
however, he had been forced to 
pay by the police. 

An arrest warrant was issued 
for him on Tuesday. He handed 
himself in yesterday only after 
his lawyers had ensured he 
would avoid jail. Two others 
linked with Fininvest also sur- 
rendered themselves yesterdaj'- 
• Mr Bettino Cnm, the former 
Socialist premier, was yesterday 
sentenced to 8 1 .- years in jail for 
his part in the 19S2 collapse of 
the Banco Ambrosiano. A similar 
sentence was handed out to Mr 
Claudio Martelli, the former 
Socialist justice minister and one 
time heir to Mr CraxL Since Feb- 
ruary Mr Craxi has been living in 
Tunisia. 


MMM fund 
cuts prices 


Continued from Page 1 


Procter steps up attack on 
Unilever’s ‘Persil Power’ 


which they were reluctant to 
blame. Mr Mavrodi's statement 
referred to the ’'panic" created by 
the government a week ago, 
when it first issued warnings 
about the scheme. In the condi- 
tions created by the statements, 
"it is useless to continue buying 
shares back from the sharehold- 
ers... it can only lead to the bank- 
ruptcy of the company," the 
statement said. 

However, the company's press 
office said that 32 of its sales 
points in Moscow were working 
yesterday, buying shares at 
RbsSSO and selling at RbsLOOO- 
On the street, the buying price 
stood at around Rbs6.000 and sell- 
ing price at around Rbsl0.000. 

The company's apparent col- 
lapse. after months of Russia's 
biggest television advertising 
campaign, has revealed huge 
gaps in securities and investor 
protection law. But the authori- 
ties were also unwilling or 
unable to use what law costs, or 
to issue warnings until the fund 
had millions of shareholders. 

Many of these say they have 
invested much of their savings in 
what has turned out to be Rus- 
sia’s latest false dream. 

The affair has not yet affected 
the currency market, where the 
rouble has remained stable 
against the dollar for some days. 


By Diane Summers, 
Marketing Correspondent 


Procter & Gamble has unleashed 
a new attack on Unilever, its 
arch-rival in the soap wars, with 
an exhibition of more frayed and 
washed-out boxer shorts plus 
full-page advertisements today in 
UK newspapers knocking Uni- 
lever’s new-generation soap pow- 
der. 

Procter paraded the shorts yes- 
terday - as well as pyjamas and 
a garish shirt - in a series of 
photo-sessions and media brief- 
ings hi g hli ghting the results of 
independent tests carried out on 
Unilever's “rebalanced" version 
of its recently launched Persil 
Power. 

The Persil Power formula was 
amended following Procter’s orig- 
inal claim that the detergent’s 
manganese-based “accelerator” 
could damage clothes after fre- 
quent washing. Procter said yes- 
terday that new test results 
showed that even the weakened 
version of the detergent could 
cause damage. 

The newspaper advertisements 
placed by Procter do not name 
Persil Power, but state that “only 
Ariel [Procter’s soap powder 1 
washes so clean yet so safe" and 
that Ariel "does not contain the 
accelerator". The advertisements 



Unilever’s new powder can stiff 
damage clothes. Procter claims 


warn the public that even if they 
switch brands, “manganese accel- 
erator residues can be left on 
your clothes", and continue to 
cause colour fading. 

Procter says it has been warn- 
ing the public about the product 
- also marketed as Omo Power 
and Skip Power elsewhere in 
Europe - because it does not 
want to be blamed for any dam- 
age. 

Unilever claims that Procter’s 


actions stem from the f2ct that it. 
too, plans to launch a new-gener- 
ation detergent in the autumn: 
while Ariel Future will not con- 
tain tbe manganese-based prod- 
uct. it will be promoted as having 
very similar characteristics as 
Persil Power, Unilever says. 

Unilever said yesterday that 
Procter’s latest test results - con- 
ducted by independent test bouse 
tbe British Textile Technology 
Group - were “very old hat". 

The test data, collected in labo- 
ratory conditions, were not as 
valid as Unilever's field trials 
which had been entirely success- 
ful, the company said. Earlier 
this month. Unilever published 
extracts of independent tests it 
had commissioned which were 
said to prove the detergent's 
safety and effectiveness. 

The Consumers' Association, 
the UK consumer group, is cur- 
rently testing Persil Power and 
results are due in about 10 weeks. 
Marks and Spencer, which manu- 
factured some of the garments 
used in the tests, is also scrutin- 
ising the product 

Meanwhile, the UK tabloid 
press is beginning to turn Persil 
Power into the “galloping gan- 
grene" of the detergent world. 
This week The Sun has had tales 
of silk boxer shorts being 
"eaten". 


Tribunal critical of awards I Lloyds Bank shares fall 


Continued from Page 1 


government’s abolition last 
November of an £11,000 compen- 
sation limit in industrial tribu- 
nals for sex discrimination. 

About 70 cases involving preg- 
nant women dismissed in past 
years from the armed forces have 
been heard at industrial tribu- 
nals, with a record £299,000 
recently awarded. 

The appeals tribunal, which 
criticised the way the original 
industrial tribunals had calcu- 


lated the awards, ruled that in 
future cases “industrial tribunals 
need to keep a due sense of pro- 
portion when assessing compen- 
sation". 

The tribunal also called for 
greater consistency of awards for 
ex-servicewomen. 

Issuing guidance to industrial 
tribunals considering future simi- 
lar claims, Mr Justice Morison 
said: “The large awards running 
into many tens of thousands of 
pounds seem quite out of propor- 
tion to the wrong done." 


Continued from Page 1 


the economic recovery were felt 
Its provisions for bad and doubt- 
ful debts fell to £102m, compared 
with £138m. 

The bank continued to gain 
from its derision in the 1980s to 
retain non-performing debt to 
less developed countries. 

Its debt portfolio earned it 
£148m, including a release of 
£105m provisions due to Brazilian 
debt rescheduling in April. 

Two problems were caused by 


financial market turmoil in the 
first hall It lost £5m in securities 
trading, and sustained a £25m 
loss from Banco Multiplic, a bank 
d ealing in Brazilian government 
securities in which it has a 50 per 
cent stake. 

Sir Brian Pitman, the bank’s 
chief executive, said it was bold- 
ing on to about 60 empty 
branches in the hope of getting 
better prices when the property 
market picked up. 

Sir Brian suggested that they 
would make good restaurants. 


T 


FT WEATHER t GU!DE 


Europe today 


Most of Europe wHI have tropical 
temperatures with dry and sunny conditions 
in central and northern regions, it will be hot 
and humid in the west of the continent Hot, 
moist air will spread northward to France 
and the Benelux countries producing 
thunder storms. The heaviest showers are 
expected over north western France, 
northern Spain and south-east England. 
Sunshine and hrgh clouds will mark the 
transition between wet and windy conditions 
over Ireland and sultry conditions over 
England and the Midlands. 

Scandinavia will have unseasonably high 
temperatures with same cloud and a tew 
patches of rain over the north. Eastern 
Europe will be dry and mostly sunny with 

scattered showers near the Blade Sea. 






% 


. * e* 


i RE 






ipi o' ■ . 

) 33 


Five-day forecast 

The next three days will be hot with 
widespread afternoon thunder showers 
developing over western Europe. Central 
Europe will have widely scattered showers 
and high temperatures. There will be rain 
and more moderate temperatures over 
western Scandinavia and the British Isles, 
white eastern regions remain summer-like. 


o-fl 

: y? o, » “V 

W * -fV* 


fj NT* \ ■ . 




... : warm front CoM front A A Wind wood In KPH 


TODAY'S TEMPERATURES 


Situation & 12 GMT. Tompeietures maximim for day. Forecasts by Metoo Consult of ttm Nethertands 


AtwOhatH 

Accra 

Algiers 

Amsterdam 

Athens 

Atlanta 

B. Aires 
B.ham 
Bangkok 
Bareafens 


Maximum 

Beijing 

sun 

34 

Caracas 

shower 

26 

Faro 

Celsius 

Belfast 

rain 

20 

Cardiff 

thund 

21 

Frankfurt 

wn 

39 

Befpade 

sun 

34 

Casablanca 

sun 

25 

Geneva 

ten- 

28 

Berlin 

sun 

38 

Chicago 

tali 

30 

Gibraltar 

ter 

35 

Bermuda 

fair 

31 

Cologne 

sun 

34 

Glasgow 

SUl 

30 

Bogota 

sftower 

18 

Dakar 

fair 

20 

Hamburg 

sun 

32 

Bombay 

rein 

3D 

(MU 

fair 

33 

Heteinw 

ter 

31 

Brussels 

sun 

33 

Delhi 

shower 

31 

Hong Kong 

cloudy 

15 

Budapest 

sun 

35 

Dubai 

sun 

44 

Honolulu 

thunO 

26 

CJisnan 

ter 

28 

Dublin 

rain 

20 

Istanbul 

thund 

33 

Cabo 

Ml 

38 

Dubrovnik 

SUl 

31 

Jakarta 

Sun 

28 

Cape Town 

sun 

21 

Edinburgh 

doudy 

22 

Jersey 

Karachi 


No other airline flies to more cities in 
Eastern Europe. 


Lufthansa 


Kuwait 

L Angeles 

Las Ralmaa 

Lima 

Lisbon 

London 

Lux.bou>g 

Lyon 

Madeira 


am 

27 

MaM 

sun 

35 

Rangoon 

rain 

28 

ter 

34 

Majorca 

nai 

33 

Rayklavfc 

rain 

15 

thund 

28 

Melts 

sun 

32 

no 

ter 

23 

sun 

30 

Manchester 

dourly 

25 

Rome 

fair 

31 

rain 

22 

Mailla 

thund 

28 

S. Fraco 

sui 

24 

sun 

32 

Mel bourne 

rain 

13 

Seoii 

cloudy 

36 

sun 

30 

Mexico City 

teiT 

22 

Singapore 

doudy 

32 

ttWKj 

30 

Miami 

thund 

32 

StocJdioim 

sun 

32 

lair 

32 

MSan 

sun 

31 

Strasbourg 

ter 

33 

sun 

28 

Mcntraa! 

rate 

2fi 

Sydney 

shower 

15 

fair 

30 

Moscow 

ter 

22 

Tangier 

sun 

26 

Bund 

20 

Munich 

sun 

32 

Tei Avfv 

ter 

31 

cloudy 

31 

Nairobi 

dourly 

22 

Tokyo 

dttww 

31 

sun 

45 

Naples 

ter 

32 

Toronto 

fair 

26 

sun 

28 

Nassau 

thund 

31 

Vancouver 

fas- 

22 

sun 

28 

New York 

thund 

30 

Venice 

ter 

31 

cloudy 

19 

Nice 

fair 

29 

Vienna 

sun 

34 

Shower 

25 

Nicosia 

ter 

36 

Warsaw 

sun 

35 

thund 

27 

Oslo 

doudy 

27 

Washington 

mural 

30 

sun 

31 

Farts 

sun 

34 

Wellington 

shower 

12 

thmd 

31 

Perth 

ter 

17 

Winnipeg 

ter 

30 

sun 

25 

Prague 

sun 

35 

Zurich 

ter 

29 


THE LEX COLUMN 


Tender feelings 


Tbe Bank of England must have 
known that yesterday’s Treasury Bill 
auction would cause a stir. Since 
three-month money market rates have 
crept up over the past week, it had an 
awkward choice. It could withdraw 
the tender, in which case it might be 
, accused of forfeiting credibility by 
resisting upward pressure on rates. Or 
it could proceed on schedule, in which 
case the markets might assume it was 
somehow endorsing higher rates. In 
tbe event it chose to do the latter but 
offset the signal effect by dealing 
shortly afterwards at its normal rate 
in the money market. 

Such a sophisticated approach may 
seem natural to an organisation with 
300 years of experience. But the simple 
message that no interest rate signal 
was intended was lost on the broader 
market. Instead it concluded that the 
Old Lady was finally losing her grip. 
Mach as the Bank prizes its discretion 
over the tuning of interest rate 
changes, the uncertainty could have 
been avoided if decisions taken at the 
monthly meeting between the chancel- 
lor and the governor - most recently 
on Thursday - were implemented at 
once. The Bank's right to choose the 
moment supposedly reflects its techni- 
cal grasp, but it did not show much 
talent in this regard yesterday. 

Moreover, the authorities may be 
missing an opportunity if they have 
decided to leave rates alone. Though 
the markets may hare read too much 
inflationary risk into this week's CBI 
quarterly trends survey, policy should 
aim to pre-empt any acceleration of 
price rises before it actually happens. 
Parliament is now in recess and no 
gilts auction is on the cards for 
August. There could hardly be a better 
time to move, especially since the mar- 
kets will remain restive until the 
authorities finally show their hand. 


Lloyds Bank 


Share price relative to the 
FT-SE- A Banks Index 

100 \ 


SO 1 


1993 

Source'. FT SrapMe 


holders’ funds of — per cent_ 

The bank’s answer for the time 
being is that it would be wrong to 
sacrifice return unless it was sure 
higher business volume would com- 
pensate for loss of margin. In other 
words Sir Brian Pitman, its chief exec- 
utive. is not about to start the price 
war many observers of UK banking 
fear. Whether his competitors will let 
him go on reaping such high returns 
is another matter. The most danger- 
ous time will be when loan demand 
picks up, making competition for mar- 
ket share more worthwhile. 

It would be better for Lloyds if Chel- 
tenham & Gloucester is in the bag 
before this happens. C&G’s low-cost 
operation will provide a sure defence 
against the price-cutters. Lloyds had 
nothing new to say on C&G yesterday. 
But if the bid process falters, its 
shares would surely faff much further 
than tbe 3 per cent witnessed after its 
mildly disappointing dividend rise. 


eager first-time buyers. But .several 
factors nre deadening the market. Real 
income growth has been dented by tax 
rises. Hie rise in long band yields has 
already pushed up the costs of fixed- 
rate mortgages to new bor row er s by 
about 2 1 » percentage points. More hou- 
seowners may have been sprung from 
the negative equity trap but they stiff 
ltave no equity from which to gear up 
and climb the housing ladder. Mort- 
gage repossessions have fallen sharply 
from their peak but are still running 
at a historically high level. 

But maybe the real culprit is the | 
government. In 1975 it was generous i 
enough to pay 40 per cent of all mort- ] 
gage interest payments. Last year that ' 
figure had dropped to 10 per cent That . 
other fuel of house market prices - I 
negative real interest rates - has also ! 
teen eliminated. Such economic virtue j 
is. of course, commendable. But it has 
a price. 


Llovds Bank 


However hard it tries. Lloyds Bank 
seems to find it difficult to shake off 
the image of producing high returns 
but limited prospect of organic 
growth. The hank says it is starting to 
see faint signs of higher volume, but 
its first half presented a familiar pic- 
ture. Though operating income before 
provisions rose, this largely reflected 
continuing tight control over costs 
and the reinvestment of retained earn- 
ings. which boosted interest income. 
The loan book was slightly lower than 
a year ago. Lloyds must ask itself how 
this poor underlying picture 
squares with its net return on share- 


Housing market 

The strong recovery in the UK econ- 
omy has barely touched tbe housing 
market. The prospect of a turn in the 
interest rate cycle must raise doubts 
among householders about whether it 
ever will. Although a small rise in 
short-term rates would not much 
affect the cost of mortgage borrowing, 
it would damage consumer confidence. 
Next week’s house price figures from 
the Halifax and Nationwide building 
societies are unlikely to be encourag- 
ing. 

This is curious. On various afforda- 
bility indices, houses are “cheaper" 
than for many years. Demographics 
suggest there should also be plenty of 


Food retailing 

Things have readied a pretty pass 
in the UK grocery industry whim the 
two biggest chains believe the best 
means of expanding is to scrap over a 
small Scottish retailer such as Wm 
Low. But that battle may yet be seen 
as tbe last hurrah of industry consoli- 
dation heralding a more mature era. 
Scotland is the last area of the country 
to be carved up. It Is significant that 
both bidders highlight the need to 
recycle rather than add capacity. 

All superstore groups are scaling 
back their once mnn fc opening pro- , 
grammes - although that partly I 
reflects a stricter planning regime. 
The average cost of superstores has 
fallen. The big groups are depreciating 
their assets more prudently, providing 
greater comfort about the quality of 
future earnings. The superstore chains 
have stamped their authority on the 
market by t rimming prices - albeit at 
a cost to their gross margins. Diversifi- 
cation plans are developing in product 
ranges, geographical areas and store 
formats. Add in the accelerating eco- 
nomic recovery and It is easy to 
understand why the sector has outper- 
formed by 12 per cent over the past 
three months . 

But the dawn of that new era may 
prove false. Asda and Gateway, which 
started the pricing turbulence last 
year, may now be appreciating the rel- 
ative price stability. But Kwik Save 
could prove the next disruptive force. 
Squeezed between the hard discount- 
ers and superstores, it may be tempted 
to give deep price cuts another go. 




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FINANCIAL. TIMES WEEKEND JULY 30/ JULY 31 1994 * WEEKEND FT I 



SECTION II Weekend July 30/ July 31 1994 


Conservative Party popularity 





Percentage of seats In House of Commons won at generaf efections* 


atm 



Feb Oca 



John Major 1990- 






England: the west’s one-party state 

Over the last century the Tories have ruled Britain longer than the Communists ruled Russia . Andrew Adonis explains how they did it 


It will be interesting to be the last of 
the Conservatives. I foresee that will 
be our fate. 

S uch was the private pre- 
diction of Britain's lon- 
gest-serving, and arguably 
most successful. Conser- 
vative leader of the past 
century. It was not Margaret 
Thatcher but the Marquess of Salis- 
bury, prime minister for 13 years at 
the zenith of Victorian Britain’s 
imperial power between 1885 and 
1902. 

No modern Tory leader, least of 
all Baroness Thatcher, would 
express such forebodings, even in 
private. Not in their gloomiest 
moods contemplating opposition to 
a Blair Labour government do 
Tories fear for the annihilation of 
their party. The "Canadian sce- 
nario" - the ruling Conservatives 
were reduced to just two seats in 
last year's Canadian general elec- 
tion - is nothing but a party game 
in Britain (name the two Tory MPs 
you would like to see survive). 

The reason for this goes to the 
heart of contemporary English cul- 


ture and politics. Since Lord Salis- 
bury’s day the Tories have, above 
all, been the voice of the English 
middle class. As that class has 
grown, and its values and aspira- 
tions permeated English society at 
large, the strength and inner 
self-confidence of the Tories has 
increased. 

Not that the Tories were previ- 
ously weak. The Conservative party 
is the oldest and most successful 
political party in any western 
democracy. It has governed Britain 
for 76 of the 110 years since the 
creation of the mass electorate in 
1884 - longer than the Communists 
ruled Russia, but with the Inconve- 
nience of 29 free elections in 
between. 

Why, then, do the Tories appear 
so adrift? John Major's failings and 
survival prospects have preoccupied 
the Westminster world since the 
day he succeeded Thatcher - a grey 
man leading a grey cabinet, domi- 
nated by uninspiring political man- 
agers whose driving ambition is to 
stay in office. 

Some believe that the Tory mal- 
aise goes far deeper. In a recent 


pamphlet, John Gray, the political 
philosopher, argues that British 
Conservatism has committed sui- 
cide on the altar of tree market eco- 
nomics. "Traditional conservatism 
no longer exists in Britain." he 
claims. "It is dead - killed off by the 
radical market liberalism which the 
Tories adopted in the late 1970s, and 
which has governed the policies of 
successive Conservative govern- 
ments since that time.” 

The idea is appealing. Insofar as 
"Majorism" represents a pro- 
gramme, it is the dregs of Thatcher- 
ism - taking privatisation to 
lengths Thatcher dared not go (the 
railways and the Post Office), and 
advancing remorselessly with pub- 
lic sector reforms - notably in 
health and education - launched in 
the mid-1980s. 

However, Gray is on shaky 
ground in arguing that modern 
Toryism is "thoroughly uncongenial 
to the tolerant and sceptical temper 
of the British electorate,” and that 
the Conservatives are bound to reap 
the electoral whirlwind. The likeli- 
hood of a Tory defeat is the wisdom 
of the political establishment. 


whose horizons rarely extend 
beyond the latest opinion poll, 
by-election or leadership change. 
But an historical perspective puts 
the Tories’ present predicament in a 
different frame. 

In the first place, there is no such 
thing as the "British electorate”. 
For much of the last century Scot- 
land, Wales and (Northern) Ireland 


‘Most of the English 
electorate are villa 
Tories in lifestyle 
and aspirations ' 


have refused to conform to the 
English pattern. Scotland and 
Wales have been markedly less 
Tory than England. Until the inter- 
war years their professional classes, 
never fully anglicised and more col- 
lectivist-minded, looked mainly to 
the Liberals for political careers. 
Since, the same impulses have led 
them to Labour. 

The Tories are the English 


National Party. "My politics are 
described by one word, and ‘that 
word is ENGLAND," Disraeli told 
his electors in 1832. Norman Teb 
hit’s Euro-sceptics could not put it 
better today. “That word" has been 
nothing but a boon to the Tories. 
Although it rarely speaks its name, 
En glish nationalism is as potent a 
political force as its more naked 
counterparts on mainland Europe, 
and England accounts for four-fifths 
of the seats in the House of Com- 
mons. 

Fighting the separatist tendencies 
of the other parties has always been 
a prime source of Tory ideology and 
morale, from Gladstone's Irish 
Home Rule plans of the 1880s to 
successive schemes for Scottish and 
Welsh devolution supported by lib- 
erals, Labour and Nationalists in 
recent decades. 

For the Conservatives it was only 
a short step to fighting the Brussels 
bureaucrats - or, at any rate, refus- 
ing to give in to them as much as 
the other parties. It is potentially 
just as popular a cause in England 

Nationalism inevitably creates 
problems of government. Salisbury 


had to govern Parnell's Ireland 
without too much repression. John 
Major cannot afford total isolation 
in Brussels - and when Baroness 
Thatcher achieved that she had to 
go. Yet Tories have ever been mas- 
ters at tempering visceral campaign 
rhetoric with compromise in office. 

Moreover, Tory England is 
expanding England. The last 30 
years have seen a sharp contraction 
in the manual working class, a pop- 
ulation shift to the home counties, 
and an inexorable rise in home 
ownership. 

The "salariat” comprised 18 per 
cent of the UK electorate in 1964; it 
now extends to about a third (more 
in England), with the proportion of 
home owners up hum about one- 
third to two-thirds (ditto). Over the 
same period the “petty bourgeoisie" 
of small shopkeepers and other 
self-employed tradespeople, consis- 
tently the most pro-Tory of social 
groups, has remained a solid 10 per 
cent of the electorate. 

England now has more actors 
than miners, and each parliamen- 
tary boundary review sees a redis- 
tribution of seats from the cities to 


the suburbs. 

The Tories have long been the 
party of home-owning suburbans. 
Lord Salisbury called it “villa Tory- 
ism,” and favoured single-member 
parliamentary seats as the best 
means of isolating it from less reli- 
able - but often still pro-Tory - 
urban working-class districts. Most 
of today's English electorate are 
villa Tories in lifestyle and aspira- 
tions. 

Villa Tories do not invariably vote 
Tory. In mid-term local and Euro- 
pean elections they have always 
been liable to defect cn masse - 
particularly, in southern England, 
to the various incarnations of the 
Liberal party. Since the mid-1970s 
the Liberal Democrats, as they have 
become, have garnered a sizeable 
vote, appealing particularly to non- 
metropolitan manual workers and 
public-sector professionals anxious 
for more public spending. Tony 
Blair’s Labour party wifi mine the 
same seam. 

It is important, however, to 
understand the strength of the Tory 


Continued on Page XVm 


CONTENTS 


Finance & Family : How to pay for 
that M-reg car III 


Travel : Nicholas Woodsworth 
visits an Arctic Cdte d'Azur X 


Perspectives : Nigel Spivey 

converts to Zionism XIII 


Books : Alan Clark finds inspiration 
for old-fashioned Tories XIV 


Art Sixteen views of Monet's 
cathedral of dreams 


XVI 


rivate View Martin Gilbert on the 
yth ot Churchill's dirty laundry XVIII 



Indomitable in battle, defeated in 
peace - toe fall of a Highland 
regiment IX 


Arts 

Books 

Brldgo. CfWts, Crossword 
Fashion 

Rnunco & Ihs Family 
Food & Drink 
Ottrionint) 

Now To Spand It 

DomWc Lawoon 

Markets 
Mowi ng 
PsnpecUme 
Prtwtfe Vtow 


Sport 
Travel 
TVS Radio 


XV-XVJ 

XIV 
XV8 
Vttt 

in-W 

DC 

XV 
VHI 

XVU1 
II 
JOB 
IX. xin 
xvut 
XU 
XIII 
X-XI 
xvu 


Long View /Barry Riley 

Rates on the turn 



it is now almost six 
months since UK 
short-term interest rates 
were controversially 
cut, amid disagreement 
between the Treasury 
and the Bank of 
England and in the 
immediate wake of the 
initial tightening of dol- 
lar rates by the US Federal Reserve. 

A good deal of economic recovery and 
growth has flowed under the bridge 
since, making an early rise in UK rates 
look much more likely, although there 
was only confusion in the money mar- 
kets yesterday afternoon as the Bank 
apparently tried to distance itself from 
a sudden rise in Treasury bill rates. 

Any official rise confirmed at the 
beginning of next week - maybe of half 
a percentage point - would be the first 
after 15 consecutive cuts since the peak 
of the last interest rate cycle was 
reached at 15 per cent in 1989. No accel- 
eration of inflation is yet visible: the 
latest underlying rate is no more than 
2.4 per cent, and the upward pressures, 
when they arrive, are likely to prove 
modest However, inflation can only be 
beaten from the front, not in arrears. 

The British economy is now growing 
quite fast - by 3.3 per cent in the sec- 
ond quarter, which on past form for 
this stage of the economic cycle is 
likely to be an underestimate by the 
official statisticians. In such a context 
this week's quarterly industrial trends 
survev from the CBI for July upset the 
markets by highlighting the ingrained 
inflationary bias in Britain's industrial 
cconnmv. Capacity utilisation is already 
ai historically high levels; investment 
intentions are quite subdued. 

Britain's manufacturing industry is 
today dominated by dogged survivors. 
Most of the expansionists and optimists 
went out of business years ago. The rest 
have cut capacity and slashed costs and 
have waited impatiently in their 
trenches for a revival in demand. Tney 
now plan to raise their prices and boost 
their profits - at least, that is the inten- 
tion of a significant balance of compa- 
mirvuVAi hv the CBI. The same 


message comes from a separate survey, 
showing a sharp rise in the purchasing 
managers’ price index for July. There is 
little obvious sign of companies that 
intend to increase output and cut prices 
- outside Wapping, anyway. 

If this price-based commercial strat- 
egy works it will prove inflationary. A 
price-led recovery would surely drag up 
pay, currently growing at a fairly mod- 
est 3% per cent. Profits are already 
reaching a 30-year Ugh as a proportion 
of national income. More likely, the 
strategy will not work but will lead 
straight to a more potent problem - a 
balance of payments crisis. This is 
because in an open economy foreign- 
made imports which are not having 
their prices raised will increase their 
market share - and anyway, domestic 
supply will prove inadequate. 

A strong cyclical surge in profits is 
built into the expectations of the stock 
market. The renewed weakness of the 
gilt-edged market this week, when the 
Bank of England's 300th birthday cele- 
brations on Wednesday were slightly 
dampened by the disappointing 
response to that day’s gilt auction, has 
undermined the valuation of equities. 

F or instance, the yield ratio 
between long-dated gilts and 
equities has widened to nearly 
2.3, which is looking stretched. 
Moreover the real yield gap between 
equities and index-linked gilts, which 
normally wobbles around a positive 0.5 
per cent, is slightly negative. The last 
time this happened was in 1987. when 
the reverse gap reached a full percent- 
age point shortly before the stock mar- 
ket crashed in October that year. 

In early 1987 expectations of growth 
in profits and dividends were very high 
- justifiably. Dividends grew by 15 per 
cent that year. Even so, the bubble of 
overvaluation soon burst. This time 
anaWsts appear to be expecting profits 
growth of at least 15 per cent both this 
year and next, with vear-on-year divi- 
dend growth rising from its current 7 
per cent to maybe 9 per cent - a 
health' - advance in real terms, assum- 
ing inflation stays low. So looking two 


years ahead the All-Share Index could 
be yielding a prospective 48 per cent. In 
which case the challenge of index- 
linked gilts returning 38 per cent real, 
as they now do. would look quite weak. 

But the tension between the inflation- 
ary enthusiasm of the securities mar- 
kets and the anti-inflationary zeal of 
the authorities is becoming charged. 
Implied inflation in the gilt market is 
now more than 4'A per cent This week 
the Bank of England offered straight 
16-year fixed-coupon paper, which was 
what the market was supposedly 
waiting lor. But the issue barely got 
away and bidders were immediately 
showing a 18 per cent loss. 

One problem may be a shortage of 
domestic buying power, at a time when 
the foreigners are sitting on their 
hands. Life assurance companies, the 
biggest domestic buyers of gilts, have 
seen their new business fell away - by 
20 per cent in the first half for the 
Prudential, by 17 per cent for Legal & 
General. Pension funds have very little 
cash flow, and can only buy gilts by 
selling equities. 

But the more fundamental point is 
that this is a bad time in the cycle for 
bonds. When equity dividend expecta- 
tions are so high a yield of even 8 1 /* per 
cent-plus on gilts seems tame. The mar- 
ket seem s quickly to have forgotten the 
scare over Stephen Dorrell and his 
hints at extra taxes on dividends; Dor- 
re]) has anyway been reshuffled to a 
safe distance from the Treasury. 

At some point, perhaps imminently, 
the Bank of England may have to seize 
the initiative and put short-term rates 
up. It has to cool down economic 
growth to a pace - under 3 per cent - 
which the capacity-constrained UK 
economy can handle. It will have to try 
to convince industry - though this will 
take years - that rapid, sustainable 
growth can only come through raising 
productivity and building more facto- 
ries, not from jacking up margins. 

The UK equity market, however, has 
jumped on to a time loop back to the 
1980s. and is thoroughly enjoying the 
ride. But that time machine could gen- 
erate higher interest rates too. 



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II WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


★ 

MARKETS 


London 


Plant capacity utilisation 


Fretting over 
whether the 
price is right 

Andrew Bolger 


Current working as % erf fall capacity working 



H ow can the 
shares of a 
small grocery 
chain such as 
William Low 
nearly doable in value within a 
fortnight? Easy; when Bri tain' s 
biggest food retailer, J. Sains- 
bury, decides to change the 
habits of a lifetime and enter a 
bidding battle to prevent 
Tesco, its main rival, from 
snapping up the struggling 
Scottish company. 

Analysts fluently reel off rea- 
sons why the majors are keen 
to get their hands on Wm Low; 
it offers a shortcut to a strong 
market position and distribu- 
tion network in Scotland, 
where it is increasingly diffi- 
cult to obtain pl anning permis- 
sion for more stores. 

Yet a fortnight ago these 
strategic assets were scarcely 
reflected in the Dundee group's 
share price, which had lan- 
guished as the market focused 
on its shrinking sales and 
profit margins. The episode is 
a useful reminder that markets 
must try to combine judgments 
of both underlying value and 


short-term trading perfor- 
mance and outlook - and how 
inexact the results can be. 

The disparity between the 
current buoyancy of corporate 
results and increasing concern 
over some fundamental aspects 
of the UK economy explains 
the twitchy mood of the City, 
even al though the FT-SE 100 
indpy has now bounced by 206 
points from its June low point 
of 2877. 

This week Imperial Chemical 
Industries increased its pre-tax 
profits by 40 per cent and the 
UK's largest chemicals com- 
pany hailed “the first tangible 
signs of a widespread recovery 
in our worldwide markets." 

Lloyds Bank got the clearing 
banks’ reporting season off to a 
solid start by confirming a 
sharp drop in bad debt provi- 
sions, but subdued demand for 
loans suggests customers will 
not forget the harsh lesson of 
recession in a hurry. 

Even beleaguered BAT 
Industries, the tobacco and 
financial services group, was 
able to increase profits in spite 
of the growing backlash 


68 1 1 1 L 

1982 66 68 71 

SquckUbs 

against smoking in the US. 

An important cloud over- 
hanging the equity market was 
dispelled on Thursday, when 
the new price regime for the 
privatised water companies 
was revealed. Although the 
controls - known as K-factors 
- limit fixture price increases 
to 1 percentage point a year 
above inflation, analysts 
quickly concluded that most of 
the 10 privatised water and 
sewerage companies would be 
able to maintain dividend 
increases of 3 or 4 percentage 
points above inflation. 

However, the City's underly- 
ing nervousness had been dem- 
onstrated the previous day. 
when the FT-SE 100 shed 343 
points to drop back through 
the 3,100 mark. The Considera- 
tion of British Industry's quar- 
terly industrial trends survey 
showed that improving exports 
were contributing to the fast- 
est rise in order books for 


ji i i i— 

74 77 80 BS 


almost six years. But analysts 
were more concerned by indi- 
cations that UK interest rates 
might have to be tightened 
sooner rather than later. 

Inflationary pressures in the 
manufacturing sector picked 
up over the quarter, and rela- 
tively weak investment inten- 
tions fuelled fears that bottle- 
necks are developing. As the 
chart shows, capacity utilisa- 
tion rates showed a further 
increase in July - and are 
already running well above 
their long-run average. 

The percentage balance of 
Anns expecting to increase 
their expenditure on plant and 
machinery over the next 12 
months was plus 6 per cent in 
July, compared with plus 4 per 
cent in April, so the capacity 
shortfall will not be quickly 
made good. 

The broker USB warns: 
“This suggests that manufac- 
turing industry has a woefully 
inadequate capital base, which 
could act as a severe constraint 
on future output growth. If 
demand growth remains 
strong, it is likely to fuel rising 
inflationary pressures and a 
burgeoning current account 
deficit-” 

The CB1 survey showed that 
most British companies have 
not adjusted their investment 
criteria for low infla tion and 
interest rates, in spite of warn- 
ings from the government that 
this is stifling investment. 
Many companies still demand 
that investment projects 
should either yield a rate of 
return above 20 per cent, or 
pay back the investment 
within three years. 

Companies also assume the 
government will not deliver its 
inflation promise. Their aver- 
age prediction for inflation 
when considering investment 


J l i i 

88 80 82 96 


projects is 3 per cent, com- 
pared with the government's 
target of bringing it below ZS 
per cent by the end of the par- 
liament . 

Eddie George, governor of 
the Bank of England, has cited 
the expectation of highAr infla- 
tion as one factor that would 
call for tighter monetary 
policy. 

The market again took fright 
yesterday afternoon, when the 
Bank sold short-term Treasury 
bills at rates of up to 5.75 per 
cent - half a percentage point 
above the level of base rates. 
Some traders took this as a sig- 
nal that UK interest rates were 
about to rise and the FT-SE 100 
at one point had shed 62.5 
points. It recovered to close 
just 132 points down on the 
day, as analysts concluded that 
the Bank had probably not 
been trying to send any such 
signal 

However, it seems dear that 
concern over the timing and 
impact of the next rise in inter- 
est rates will continue to limit 
the pace of the market's 
advance - even if companies 
continue to report solid 
increases in profits and divi- 
dends. 

Next week's quarterly bulle- 
tin is likely to emphasise the 
Bank's continuing hard line on 
inflation. 

Meanwhile, this weekend 
one can only envy the share- 
holders of Wm Low, who wait 
to see which suitor will stuff 
most cash into their pockets. 
Investors in Sainsbury, Tesco 
and the other large food rhain^ 
are likely to be less sanguine. 
The enthusiasm with which 
this battle has been joined sug- 
gests that even the UK’s most 
successful food retailers now 
face a much tougher and more 
competitive future. 


HIGHLIGHTS OF THE WEEK 



Pries 

/day 

Change 
on week 

1994 

High 

1994 

Low 


FT-SE 100 index 

3082.6 

-32-1 

3520-3 

2676.6 

Interest rate nervousness 

FT-SE Mki 250 Index 

3640.2 

+93 

4152.8 

3363.4 

Bargain-hunting 

BAA 

953 

-23 

1063 

880 

Profit-taking 

BTR 

368 X? 

-8% 

401 

344 

Switch Into Hanson advise 

Buflough 

157 

+12 

188 

135 

Profits recovery 

Forte 

23114 

+7% 

285 

209% 

Savoy bid speculation 

Han Eng. 

193 

+31 

320 

149 

Squeeze 

Lex Service 

424 

-40 

573 

416% 

figures below expectations 

Low (Wm) 

323 

+58 

326 

138 

Bid by Safnsbuy 

Medeva 

121% 

-16% 

167 

120 

Loses patent appeal 

Menrydown 

124 

-8 

250 

113 

Dividend Mis 

Shell Transport 

730 

-12 

755 

651 

Profit taking an BtHlton sale 

South West Water 

515% 

-18% 

675 

484 

AppeaBng against Ofwat 

Thames Water 

514 

+20 

611 

434% 

Ofwat report benefits 

United Biscuits 

325% 

+8% 

388 

302 

Renewed Pid speculation 


Serious Money 

Water: half full 
or half empty? 

Gillian O’Connor, personal finance editor . 


T his week's spurt of 
relief in water com- 
pany shares prompts 
two thoughts. First, it 
is a classic example of inves- 
tors being more worried by 
antidpation of bad news than 
by the news itself. Secondly, 
many water shares still look 
sound long term value. 

Investors were - rightly - 
afraid that this week's new 
price caps for water companies 
(see page IV) would make it 
harder for the companies to 
continue paying out such 
munificent dividends. Brokers' 
analysts bad done lots of 
pretty accurate sums about 
what regulator Ian Byatt 
would decide. But investors 
still held off until they Knew 
for sure. Once the bogey could 
be viewed in plain daylight it 
looked far less frightening. 

Speculators who bought 
ahead of the review will gener- 
ally have done well - but not if 
they bought South West, which 
fell because its price cap was 
tougher than expected. Moral 
it you are going to speculate, 
go for a spread of shares - 
unless you are sure of your 
ground. 

What matters to more seri- 
ous investors is the ontlook for 
water shares now. The sector 
dividend yield is more than 5.1 
per cent compared with 33 per 
cent for the market Yesterday 
many investors were arguing 
that most of the shares (but 
not the luckless South West) 
had a bit further to go short 
term - although prices were 
racing ahead as they talked. 
Ten per cent is probably the 
limit. But long term prospects 
make them look a solid invest- 
ment. 

Some analysts reckon the 
water companies have scope to 
increase dividends by over 4 
per cent (inflation-adjusted) a 
year over the next five years. 
And the bigger increases may 
come through in the early 
years. Not bail given the lack 
of commercial risk. 

Laterally minded investors 
also bought regional electricity 
shares after the water report 


That is too simplistic. There 
may be a case for electricity 
shares, but do not base it on 
water. 

2 i: c 

The Great British Public is 
thoroughly confused by the 
Great British Financial ser- 
vices industry. People are wor- 
ried that they do not under- 
stand enough about more 
complicated products such as 
personal pensions to rnatfp an 
intelligent choice themselves. 
They think it vital that a finan- 
cial adviser should be strictly 
independent, but very hard to 
find such independent advice. 

These are some of the find- 
ings from the National Con- 
sumer Council’s new MORI 
survey into what people think 
of personal financial services. 
The Council describes the lack 
of consumer confidence as 
“worrying”. But in many ways 
it is rather encouraging. 

For the public Is right to be 
puzzled by many of the “prod- 
ucts” being sold. It is also right 
to be suspicious of many of the 
people selling those products. 

Consumers have read all the 
stories about outselling of pct- 
sonal pensions, abysmal life 
insurance surrender values, 
and ignorant salesmen. And 
they understand that any 
«ealwanan who is paid mainly 
or exclusively by commission 
must find it hard to give genu- 
inely independent advice. 

Hence their worry. But 
hence also the first stirrings of 
change in a minority of life 
insurance companies. Only 
this week Norwich Union 
switched its sales agents from 

rammissttw r tO Mlj jriey 

If commission is the root of 
all evil do not waste time per- 
suading your sales staff to rise 
above it - just remove the 
temptation. 

□ □ □ 

Costs and commissions are 
investors' foes. Here is another 
example of costs at work. 

Pension top-ups, cosily 


known as additional voluntary 
contributions (AVCs), may be a 
good idea, but you need to 
watch what you are contribut- 
ing to. 

A new survey from actuaries 
Watsons* confirms one long- 
standing worry (Weekend FT. 
April 9, page HQ. If you opt for 
a free-standing A VC you may 
well get a worse result than if 
you take what your employer 
offers. Far charges ore likely to 
be up to twice as Ugh. 

Additional contributions sel- 
dom go into the main pension 
scheme: they are ran sepa- 
rately. AU companies with 
standard pension schemes 
have to offer an AVC, and 
most employers mop up the 
charges of the scheme. So 
assuming the underlying 
investments produce the same 
stockmarket performance in 
both cases, the in-house avc 
I s bound to give a better result 

That does not, though, mean 
that you should opt for a com- 
pany AVC regardless. It 
depends what the company is 
offering. Some merely provide 
building society linked 
schemes - which may suit peo- 
ple very close to retirement 
but not those with several 
years to go. 

But if your employer offers a 
good with-proflt or unit finked 
scheme ran by a financial com- 
pany with a good record, that 
will probably be a better choice 
than a free standing scheme. 

As Watsons suggests, the 
best of aU worlds is an 
employer which offers its 
employees a choice of AVCs. 

□ a a 

Advertising is an alternative 
scapegoat for financial upsets. 
How about a switch to the new 
Russian system? Businesses 
can only advertise actual divi- 
dend and interest rates paid in 
the past Now there Is a cre- 
ative challenge. 

■ The Watsons 1394 Survey is 
£95 from Robert Ivey,. Watson 
Rouse, London Rd, Reigate, 
Surrey. RR2 9PQ or tel: 
0737-241144. 


AT A GLANCE 


Finance and the Family Index 


Car loans/Knight Williams . . — .. — — — - — Hi 

Water shares /Week ahead/ Directors’ dealings VI 

Car insurance ... V 

Unit trust changes /Cazenove / Deposit rates VI 

HIV questions/Q&A Briefcase. IX 


Unit trust sates 


Mortgage arr ears 


Net investment (Bx0 



Jun 199S 1994 An 

Source: PJJTTF 


Mora than 12 months (00© 



8ouro«CML 


Best June on record 
for unit trust sales 

Unit trusts had their best June on reconi, with net sales of 
E 1.1 bn - 50 per cent up on £726m In May. The June figure was 
almost 80 per cent higher than that for June last year, when net 
sales totalled £61 Om. 

Less than half the net sales last month were to the retail sector - 
the lowest proportion so far this year - with the rest bought by 
Institutions, the Association of Unit Trusts and Investment Funds 
said. 

The best-selling sectors among ratal Investors were UK growth, 
followed by UK equity Income and international growth. Net sales 
of unit-trust personal equity plans were £1.1 Ibn for the second 
quarter, down from £l.55bn for the first quarter, which Is the 
traditionally busy end-of-tax-year safes period. 

Mortgage arrears fall 

Fewer homebuyers were in arrears with their mortgages at the 
end of June than six months earlier 142^30 were more than 12 
months behind with payments, compared with 151,810 at the 
end of 1 993. Shorter-term arrears also showed an Improvement 
But lenders warned that rumoured government plans to cut back 
income support payments to unemployed homeowners could 
lead to a resurgence of payment problems. 

Norwich Union switch 

Norwich Union, the big UK Insurer, has switched Its life and 
pensions sales agents from commission to salaries. In March the 
insurer announced that it was suspending its entire sales force 
for a month tor retraining, after the life industry’s regulator 
identified breakdowns in management control. Instead of being 
paid by commission on the policies they sail, sales agents will 
receive a basic annual salary of £ 12,000 as well as commission. 
The number of branch offices Is to be cut from 25 to 13. 

Shares-for-Peps swop easier 

Investors will find It easier to exchange shares for Investments in 
a personal equity plan as a result of a change to the Pep ruiea. 
The Inland Revenue has agreed to a suggestion that an Investor 
can seH shares and buy them back Immediately for the Pep. In 
the past, investors had to wait until settlement day before they 
could buy back shares for the Pep. 

Smaller companies cheer 

Smaller company shares had another more positive week. The 
Hoere Govett -Smaller Companies index (capital gains version) 
dlmbed 0.8 per Cent to 1 .652.76 over the week to July 28. It is 
still down 2.3 per cent since the beginning of the year, but has 
differed lees than the FT-SE-A All-share Index, which is down 
7-8 percent 


Wall Street 


Inventories fever disperses doldrums 


Dow Jones Industrial Average 

3.850 — 



I n the middle of the sum- 
mer doldrums it usually 
requires something 
important for Wall Street 
traders to suddenly stop 
talking about the exciting 
Issues of the day. which this 
week were - in no particular 
onto* - the impending base- 
ball strike, the OJ Simpson 
case, and the state of Cindy 
Crawford's marriage. 

It happened yesterday, how- 
ever, and few could have 
guessed what it would be that 
so exdted the traders on the 
floor of the New York Stock 
Exchange nM in the dealing 
rooms around Wall Street. 
Was it a presidential scandal? 
No. An invasion of Haiti? 
Wrong. A bank collapse? 
Think again. 

The subject of everyone’s 
discussions on Wall Street yes- 
terday was inventories. Or, as 
the economics dictionary 
describes them: "stocks of raw 
materials, work in progress 
and finished goods.” Exciting, 
Isn't ft? 

While Inventories do not 
normally make pulses race. 
Wall Street economists bad 
palpitations yesterday when 
tire second quarter economic 
growth figures were released. 


R onnie Hampel, 
Imperial Chemical 
Industries' cheery 
chief executive, had 
rather more spring in his step 
than usual on Thursday. 

Alter four years of upheaval 
involving a threatened take- 
over bid. rationalisation and 
restructuring, and the largest 
demerger in UK corporate 
history. Hampel could argue 
TCI was back on course. Pre-tax 
profits were up 40 per cent 
Hampel was actually rather 
surprised by the results. "If 
you'd asked me if 40 per cent 
was achievable even three 
months ago I would have said 
no," he confessed. 

He said he had been sur- 
prised by the strong sales 
growth and the speed rational- 
isation had saved the group 
money. 

The spectacular sales growth 
in the second quarter had 
caught him on the hop. he 
admitted. The increase showed 
"the first tangible signs of a 
widespread recovery in our 
worldwide markets. This is an 
increasingly robust perfor- 
mance from all our busi- 
nesses,” be said. 

Group turnover was up an 


The data showed a 3.7 per cent 
rise in gross domestic product 
between April and June, a fig- 
ure that was at the bottom end 
of market expectations. 

The real story, however, was 
in the inventories data. 
According to the Commerce 
Department, the value of 
Inventories jumped $27.9bn to 
$5&5bn, the biggest increase 
in three years. 

The rise was so large that It 
accounted for 2.2 percentage 
points of the 3.7 per cent gain 
in GDP. In other words, eco- 
nomic growth rose hand- 
somely in the second quarter 
less because demand for goods 
climbed, bnt more because 
companies booght materials 
that never left the factory 
floor or produced goods that 
never left the shelves. In fact, 
demand growth was relatively 
weak - final sales of domestic 
product rose only 1.5 per cent 
in the quarter. 

A big build-up of inventories 
usually means one of two 
things. Either, the bnild-np 
was voluntary as companies 
produced more goods to meet 
an anticipated peak in 
demand. Or, it was Involun- 
tary as companies were left 
with an unexpectedly large 


impressive 9 per cent Conti- 
nental European sales 
increased 10 per cent, com- 
pared with a fiat first quarter, 
while UK sales rose 13 per 
cent. 

The sales recovery should 
belp ICI's profits. The company 
is highly geared. Once it has 
covered its high fixed costs, 
any additional revenue should 
quickly drop to the bottom- 
line. 

But Hampel was cautious. 
Some trends were sustainable, 
be admitted. Prices of PVC and 
methanol were rising and there 
were clear signs of recovery 
around the globe. 

"There’s been an upturn, but 
not as strong as might be 
deduced from our figures." he 
stressed. 

There were plenty of one-off 
events, he explained. The UK 
fertilisers business, long a 
drain on ICI’s profits, was 
breaking even thanks to a col- 


Soure« FTGraphfta 

amount of unsold goods 
because demand weakened. If 
it was the former, then it sug- 
gests that the economy will 
continue to grow strongly. If it 
was the latter, then it suggests 
the economy is slowing down, 
probably because of the recent 
rise in interest rates. 

Which of the two factors 
were at work was the question 
everyone was asking on Wall 
Street. Ellas Bikhazl an econ- 


lapse in Russian exports. That 
was unlikely to continue, he 
said. 

Sales on the Continent had 
risen so fast, not because of a 
marked upturn, but because 
US companies had been export- 
ing less, allowing TCI to gain 
market share. Some customers 


omist at Deutsche Bank, 
asked; “Does it constitute an 
overhang for the second half?” 
John Ryding senior eco n omist 
at Bear Stearns, said; “The 
question is, were the inventory 
accumulations unwanted?” 
And Ken Maryland of Society 
National Bank commented: 
Tve got to believe in some 
quarters it was unwelcome.” 

The bond market, typically, 
wasted Uttle time worrying 


had been stocking up to avoid 
price increases. And much of 
the group's sales growth was 
thanks to increased capacity in 
its core areas. 

“The present rate of growth 
is clearly unsustainable,” he 
concluded. 

In addition, the cost-cutting 


about what the answer might 
be. It decided that inventories 
rose lu the second quarter 
because demand had slowed 
unexpectedly. This could only 
be good news far investors in 
fixed-income securities, who 
fear that rising economic 
growth will push up inflation, 
which undermines the value of 
their investments. 

The rush to buy bonds in the 
wake of tins calculation lifted 
the 30-year government bond 
almost one and a half points 
during the morning, and 
pushed the yield - a key deter- 
minant of long-term interest 
rates - down from 7.55 per 
cent to 7.41 per cent 

Share prices rallied along 
with bonds, the Dow Jones 
Industrial Average climbing 
30 points as equity investors 
bet that the apparent slow- 
down in economic growth indi- 
cated by the jump in invento- 
ries would dissuade the 
Federal Reserve from raising 
interest rates again. The Fed’s 
open market committee is due 
to meet on August 16, and 
most economists were think- 
ing this week that it would 
vote to raise rates one more 
time. The inventories data, 
however, have given the econ- 


programme, which contributed 
about half of the 40 per cent 
rise of profits, is beginning to 
ran out of steam. 

Hampel estimated that the 
programme had saved more 
than £2i0m during the first 
half , and that the savings tar- 
get of £490m next year was 
within reach, he said. Indeed, 
cost-cutting had been achieved 
faster than expected, said Ham- 
pel This might well have been 
the consequence of the demer- 
ger which had allowed manag- 
ers to focus more clearly. ICI 
was now looking a far tighter 
ship. 

T he group would con- 
tinue to look for 
savings, said Hampel. 
But analysts wonder 
how much more can go. 

Earnings growth will 
increasingly have to be driven 
by the recovery and additional 
investments. The company Is 


omists cause to think again. 

Yet, not everyone on Wall 
Street was convinced that the 
rise in inventories was good 
news for bonds and stocks. A 
few discordant voices pointed 
out that t he bulk of the rise in 
i nvent o ries was at the whole- 
sale trade level, which is 
largely Imported products. 

“That’s a sign that compa- 
nies are buying goods ahead of 
price increases,” explained 
Mike Strauss, an economist at 
Yam ai chi International. In 
other words, inventories rose 
not because of slower domestic 
demand, but because US com- 
panies were stockpiling mate- 
rials and goods produced 
abroad before prices went up. 

Strauss, however, was in a 
minority. For most on Wall 
Street, inventories were up 
because demand was down. 
This suggested interest rates 
probably would not go up, so 
bond yields should go down, 
and stocks up. 

Patrick Harverson 

Monday 3741.84 + 0&80 

Tuesday 3735.88- 06.18 

Wednesday 3720.47- 15.21 

Thursday 3780.83 + 10-36 

Friday 


betting on areas where it 
believes it has a technological 
edge, such as CFC-substitutes 
and PET and PTA, materials 
for plastic bottles and polyes- 
ter. It is also betting on Asia- 
Pacific where last year, for the 
first time ever, the group 
invested more than In the UK. 

Meanwhile, the group contin- 
ues to move away from com- 
modity petrochemicals. Ham- 
pel repeated his view that ICI 
would never again build an 
ethylene plant, and would con- 
sider offers for a stake of the 
Teesside plant, Europe's larg- 
est ethylene plant, and fourth 
most efficient The group was 
still looking at the possibility 
of selling the joint-venture 
PVC business. , 

ICI’s strategy looks sound. 
Its focus since the demerger is 
undoubtedly tighter. The out- 
look seems good. The problem 
for investors is that ICI's 
shares have outperformed the 
London stock market by IS per 
cent since the beginning of the 
year. Those hnMing the shares 
s hou ld hang on. Those without 
have, for moment, missed the 
boat 

Paul Abrahams 


Bottom Line 


ICI finds the right chemistry 


ICI 

Share price relative to the FT-SE- A All-Share Index 

110 - - 



SO I 1 ! ! I | I 


1969 90 91 

Source: FT Grpphft* 


92 S3 94 




FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


WEEKEND FT 111 


FINANCE AND THE FAMILY 


Key to a cheap M-reg 

Bethan Hutton explains that you save money if you do not own your car 


T his August, record cum- 
bers of new cars are expec- 
ted to be driven away from 
showrooms by people who 
do not own them. 

Britain is not about to suffer an 
upsurge of car crime. Many of this 
year's M-reg care will be acquired 
by consumers using personal con- 
tract purchase (POP) schemes, 
which allow you to drive off in. a 
new car every two or three years, 
without ever paying the entire cost 
PCP is the fastest-growing way of 
buying a new car. Ford introduced 
its Options plan in 1990, and says it 
expects Options purchases to 
account for more than half its sales 
within two years. All the big manu- 
facturers have their own versions, 
together with some fi nance houses 
which run schemes for dealerships. 

From September. Midland plans 
to operate the first independent 
PCP scheme aimed at consumers, it 
will offer holders of Midland credit 
cards a telephone-based scheme 
operated by its car finance subsid- 
iary. Swan National, which can be 
used to finance any make of car. 

AD PCP schemes work in roughly 
the same way: 

M Dealer and customer agree a 
price - for example, £13,581 for a 
Vauxhall Cavalier 1.8 GL£. 

Customer pays a deposit or 
trades in another car - eg 30 per 


Best of the high street car loans 

Lender 

Monthly 

payment 

Total 

payable 

APR 

Notes 

Abbey National 

£170.60 

£6141.60 

14.8% 

A 

Alliance & Leicester 

£170.60 

£6141-60 

14.8% 

A B 

Bank of Scotland 

£168.85 

£8178-60 

14.6% 

. C 

Halifax 

El 77 52 

£6383-52 

17.9% 

D 

Midland 

£172.96 

£6226.50 

15.9% 

E 

TSB 

C172A7 

£6226.92 

15.0% 

F 

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SMBWrtMr 30 . R Runs Mudsa z% ancain uTd Auqu* 3 


cent deposit on the Cavalier (£4.074) 
leaves a balance of £9.507. 

■ Dealer works out a “future 
value" - wbat the car is expected to 
be worth second-hand at the end of 
the agreement, which can last 
between one and four years. The 
Cavalier should have a residual 
value of £5.839 after two years. 

■ Customer makes monthly pay- 
ments composed of interest on the 
whole balance, plus repayments of 
the difference between the car's 
price (leas deposit) and the future 
value - £3,668 in the Cavalier's 
case. Payments are £214 a month for 
two years, at an APR of 9.7 per cent 

■ At the end of the agreement the 
customer can choose to: pay the bal- 
ance (the “future value”), and own 
the car outright; hand back the 
keys and walk away, having, in 


effect hired the car for a few years; 
or swap the car for a new one, using 
any excess over the predicted future 
value as a deposit Most drivers 
take the last option. 

The attraction of PCP is that 
monthly payments are lower than 
with a straight loan or hire pur- 
chase. where you repay the entire 
cost of the car over the term of the 
agreement 

If you want to use PCP to roll 
over to a new car every few years, it 
is important to pick a car with a 
high resale value. With PCP. you 
pay for the depreciation plus inter- 
est, never the residual value. 
Monthly payments could be lower 
with a more expensive car which 
keeps its value well, rather than a 
cheaper car which depredates rap- 
idly. Midland says it will be able to 


give independent advice on pre- 
cisely that 

The most important factor in the 
amount you pay is probably not the 
car's price or its future value, but 
the interest rate. 

Take the example of an Identical 
Ford Mondeo GLX 1.8. bought using 
Ford's own Options scheme, or Mid- 
land's new Carchoice. Ford esti- 
mates the on-the-road price at 
£14,160, and the future value at 
£6^85 after two years. Midland’s fig- 
ures are a similar, £14J)84 and £6,636 
respectively. 

But based on a SO per cent deposit 
and mileage of 12.000 a year, the 
monthly repayments work out very 
different, at £250 with the Options 
plan, and £175 with Midland. This is 
mainly due to the different APRs: 
15.8 per cent with Ford, and 5.8 per 
cent with Midland. All the savings 
you bargain so hard for can be 
wiped out by an extra few percent- 
age points on the APR. 

As the table illustrates, even 
among six of the best car loans 
available from high-street names, 
the total repaid on a £5,000 loan can 
vary by as much as £242. So finding 
the right finance deal can save you 
even more money than finding the 
lowest-priced car. 

PCP is not the right choice for 
everyone. It is usually available 
only on new cars, or sometimes 



those up to two or three years old. 
If you want to buy a car outright, it 
may not be convenient to have to 
pay a large lump sum after two or 
three years. Agreed fixture values 
only apply if the car is in good 
condition, and has kept within cer- 
tain milea ge 1 bn it s - usually 6,000 
to 12,000 wifias a year. 

At thin ri me of year, banks and 
b unding societies trumpet their dis- 


counts and offers on personal loans 
to attract car buyers. Do not ignore 
the finance offered by car dealers. 
There are 0 per cent finance offers 
around, though you usually need to 
make a 50 per emit deposit and pay 
the balance over 12 months. 

Neil Tomkm of Lombard North 
Central, a large finance house, says 
it is a myth that buyers with cash 
horn a personal loan have more bar- 


gaining power to push down the 
price of a new car. 

Dealers' margins have shrunk, 
leaving them less room for manoeu- 
vre. but Tomkin argues that buyers 
may actually get a better deal on a 
car if they take the dealer's own 
credit The dealer earns commission 
on the finance as well as the car, 
and could possibly afford to trim 
the car's price a little more. 


Action group enters fray 

Scheherazade Daneshkhu and Barbara ElUs on Knight Williams 


Knight Williams' performance 


Investment 


year 

£ 


3 years 
£ 


4 years 
£ 


5 years 
£ 


T he battle lines are 
drawn between Knight 
Williams, one of the 
UK's largest indepen- 
dent financial advisers, 
selling mainly to the retired, and its 
most disgruntled customers, the 
Knight Williams Investors Action 
Group. 

The field is also strewn with MPs, 
the Treasury, the Consumers’ Asso- 
ciation, the Securities and Invest- 
ments Board which is the chief reg- 
ulator for financial services, and 
Fimbra, the self regulating body for 
independent financial advisers. 

Wbat is it all about? 

The MPs. who include Sir David 
Steel, the former Liberal leader, last 
week tabled an all-party early day 
motion in the House of Commons. It 
read: “This house is concerned by 
the number of complaints received 


from constituents, many of them 
retired people, who are dissatisfied 
at the service they have received 
from Knight Williams which has 
resulted in constituents suffering 
varying degrees of loss. It is also 
concerned about the apparent 
inability of the S3> and Fimhra to 
bring full light to bear on the sub- 
ject and urges the government to 
institute a thorough inquiry into 
the whole matter.” 

The action group has submitted 
an analysis of 125 complaints to the 
Treasury. 

What docs KW say? 

It has accused three of the MPs - 
John Gunnell, Sir Anthony Grant 
and Sir Geoffrey Johnson Smith - 
of having vested interests in signing 
the early-day motion, because of 
their links respectively with York- 
shire Fund managers, Barclays 


Bank and Eagle Star. It says these 
are competitors which could view 
KW as a “potential acquisition”. 
Wbat is their response? 

Eagle Star “The concept of being in 
competition with KW is a very fan- 
ciful notion - we are chalk and 
cheese.” Barclays: “We don't see 
ourselves as competitors of KW and 
it is mischievous to suggest that” 
What are investors’ complaints? 
The action group Is giving no 
details because it does not want KW 
to “jack people off one by one.'*’ 
However, KW has been the subject 
of considerable press criticism. 
Which?, the Consumer Association's 
monthly magazine, has run case 
studies involving accusations of 
inappropriate investments, “churn- 
ing” - encouraging customers to 
sell their investments needlessly 
and buy KW funds to earn the 


adviser co mmission - and of lack of 
independence. Its target market, the 
elderly, is seen as very vulnerable 
to abuse. 

Charges on its unit trusts are the 
highest in the industry with an ini- 
tial charge of 6.39 per cent and an 
annual c harg e of 2.5 per cent 
What is KWs reply? 

It says some customers panicked 
and sold after world markets fell in 
the aftermath of the 1990 Iraqi inva- 
sion of Kuwait but that those who 
stayed with KW have more than 
made good their losses. 

It also says that complaints are 
small compared to its customer 
base of 24,000; of the 218 Fxmbra-reg- 
istered complaints, it has been 
found at fault in 2L However, Fim- 
bra suggested that it strengthen its 
compliance function with an 
appointment which had Fimbra' s 


KW Global Inc & Gwth 

108.3 

Av broker fife fund 

103.8 

A v building society 

102-9 

FT-A World Index 

109.4 

Av unit trust 

106.3 

Av Investment trust 

114.0 

FT-Se-A All-Share 

112.0 

UK retail price index 

102.6 


approval. KW recently appointed 
Colin Pfainp.11, formerly head of legal 
services at Fimhra, to oversee its 
legal and compliance department 
KW says its charges are not high 
when you compare thpm to the dis- 
cretionary portfolio management 
service of any broker. More than 80 
per cent of its customers are put 
into its funds. 

I thought you said it was an IFA? 
Under the current rules, an IFA 
(and many stockbrokers are IF As) 
can ran in-house funds and advise 
their clients to invest in them. Fim- 


125.5 

125 2. 

132.0 

122.6 

126.0 

135.1 

114.0 

124.0 

135.3 

144.0 

147.9 

139.9 

137.4 

137.1 

143.2 

145.7 

148.3 

151.5 

148/2 

152.7 

168.3 

107.9 

114.1 

125.3 


bra is meant to monitor any poten- 
tial conflict of interest KW, which 
used to pay its advisers higher com- 
mission for sellfaig KW funds than 
others, stopped this lest year and, 
since March, says it has put its 120 
or so advisers on salaries. 

It says that since it gets other 
investment houses (including 
James Capel, Gerrard Vivian Gray, 
Mercury, Lazard, Schroder and Bar- 
ing), to manage the funds in a way 
s imilar to broker bond funds, it ful- 
fils its role as an IFA 
What are broker bonds? 


With a broker bond fund, clients' 
money is invested in life insurance 
funds and unit trusts. The idea is 
that the intermediary can switch 
cheaply between companies to 
catch the best sectors. 

The Sib nearly outlawed broker 
funds in 1990 because of a potential 
conflict of interest for the interme- 
diary. worries about investment 
performance and double charging - 
the investor pays the fund manager 
and the intermediary. 

Surely what matters in the end is 

investment performance? 

Yes, but high annual charges eat 
into a greater proportion of a fund's 
return. The table shows the perfor- 
mance of Knig ht W illiams ' largest 
fund. Global Income and Growth, 
with about £300m. Its performance 
is not out of line with the average 
broker life fund but it has been 
beaten by tbe FT-A World Index 
and the average unit and invest- 
ment trust (apart from over one 
year, when KW beat the average 
unit trust). Over five years, a build- 
ing society investment would have 
proved more profitable. 

See Page VI 


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naif kx each period (Mr tabu. nrt mama iidim m u rt otfiar HgunsmonM at hue into to*. whom n f ptea&o. The 
tsssanpif bum jfeus dost not include cron 


NO INITIAL CHARGE 






NO WITHDRAWAL FEE 
AFTER 5 YEARS 


M&G continues to offer 
better value by abolishing 
the initial charge on The new 
M&G Managed Income PEP. 


I 


To: The M&G Group, M&G House, Victoria Road, 
Chelmsford CM1 1FB. No Salesman will call. 


j Mr/ Mrs /MISS 


Initials 


Surname 


Address 


X 


Postcode 1 

J 

Past porformonco does no) guaianwo future growth. Thu pneo ol units 
and Wm income trem thorn can go as UP- vou m«tv not yui 

back Utu amount you nweulad 

Unite tn Thu MSG Managed Income PEP n»H tor toss, than S your* .ire 
-oubtect to a withdrawal too at tMJtweun V*» and a S'V 

VWD never nutm you) naiTW M aUd>«J 3 uvaifcrtjio to iraxxirx-ChKl orpnirn^itnwa 
VIM wil ucca&JunaRy tot you atuul dUvr tpumjcifa cn nomcon afhrot! Uv dumiIws 
■jiMnsaoattrtlKCCartfittniu. ■_ it you woula p»rtur not loi.>c«*vo 

■fvti wfounntun 


Issued by MSG Financial 
Services Limned 
(Member ol IMHO]. 


r 

:□ 


YKPE 


■V.V avartacMn ra im/abm.-. or mil fU.'poO.^ 



For literature, including 
an M&G Handbook and 
details of PEP 
transfer and M&G Starting 
High Interest Fund, 
please return this coupon, 
contact your independent 
financial adviser 
(H you have one) or 
telephone 0245 390 OOO. 
(24 hour sendee). 


M&G is the 
Sunday Times 
UK Unit 
Trust Group 
of the Year. 



THE M&G PEP 



YEAR STEPPED INCOME DEPOSIT 



Introducing our latest scheme to make 
your income escalate. The new 3 -year Stepped 
Income Deposit. 

Ic gives you guaranteed interest rates chat 
will rise every six months. Invest a minimum 
of £500, and within 3 years you will get a return 


of 10 % gross. As with all good offers, though, 
this one is limited. It must end by 31 August, 
so you'll need to hurry. 

lb take advantage of it, call 0800 56 58 60, 
or step into your nearest 
Lloyds Bank branch. 



Lloyds 

Bank 


THE THOROUGHBRED BANK. 


llraudeSn vfcdiniarb»>nlhiiMi« ra l»” ** "BtwH Tfcl JBm uKfMnliin w utrmgiumi jd» ukiwln Hill, bui rut In.™-.. — * I — JlHr m I urilu 

luar MX etmumt tl*. or lubjcci 10 iJmt rcqiorrd motonw pra. Tbe mo o/ mu™ qroud alwr ra ai leyrar ol irfera pul • mand* tfu«i m t iWfed. Imra — „ 

W..W - r"- 1 - 1 , it f — - Incaid(«Altt,Aii^BuUii^lkiikKCM.ai^cittnbliMidwvwaMiaxm H-> -iMn i -rrrt — rnmin iirilmixt t‘r m-hr1r.Mi 1T1.1 .1 

Llapb B#nl Mr n t onrin o* IMHO *nd *» BwJang CWnxhwn Sd™., u£nu «7 m ihrCodx of lU^Poau Uopi i Bank de. PC 1 Bn 1 U. Cau» Home. Canon, Chf. Bml BS 9 V jib 








IV WEEKEND FT 


FINANCIAL TIMES WEEK.EN D J U L V MV 7 ULY 3 1 1994 




FINANCE AND THE FAMILY 


Water shares offer 


K-Day for the UK water companies 


Water sector 


Ca u pw a era pennt ae dioincgf«MC>W9ta on enrage by ttPiotefcrtt tew n 


Di 


stable income on tap 


Richie to She Atf-Sftare 
rFT-SE-ftfee^ 
i?G ■ 


W ater inves- 
tors should 
be feeling 
rather 
pleased fol- 
lowing the announcement this 
week of a new price regime for 
the UK’S 31 water and sewer- 
age companies. 

While the industry regulator 
has set tougher price limi ts for 
the companies, he bps man- 
aged to leave enough leeway 
on average to give better 
returns to shareholders than 
those expected just a week ago. 

Ian Byatt director-general of 
the Office of Water Services 
(Ofwat), has set the price 
increases for the next 10 years 
at an average l percentage 
point above inflation - a for- 
mula known as the K factor. 
This compares with an average 
5 per cent a year since privati- 
sation in 1988. 

The increase has been 
heavily weighted towards the 
first five years, with an aver- 
age K of L4 for 1995-2000 falling 
to 0.4 to 2005- This is when 
companies will need the high- 


est price rises to fund the vast 
capital spending programme 
necessary to bring the industry 
up to EU standards. Byatt’s 
tougher approach on the sec- 
ond five years is certain to be 
the subject of another review 
in 1999, rendering those figures 
almost irrelevant 
While the price limits for 
1995 to 2000 fhll roughly in the 


squeezing budgets for elements 
such as population growth. 

Ofwat’s pronouncements 
were greeted as tough but fair 
by nine of the 10 water and 
sewerage companies. The one 
exception is South West Water, 
which has enjoyed a K factor 
of 1L5 for the last three years 
due to the vast amount of 
spending it faces to clean up 


Peggy Hollinger on what the new 
price regime means for investors 


middle of analysts' expecta- 
tions, Byatt's trick was to 
reduce substantially the capi- 
tal spending burden faced by 
water companies. Instead of 
the £16bn which they had real- 
istically expected - although 
this was not what they told the 
regulator in their submissions 
- Byatt's negotiations with the 
government brought the figure 
down to £14bn. 

The reduction is due both to 
deferring some spending and 


its extensive coastline. 

TO almost universal surprise. 
South West was given a K of 
Just 1.5 for 1995 and 1 for 
1996-2000 on the back of virtu- 
ally halved capital expendi- 
ture. The group, which argues 
Byatt has not allowed enough 
capital spending to fluid future 
obligations, is rhaTtong in g his 
decision at the Monopolies and 
Mergers Commission. 

Nevertheless, the other 
water companies were relieved. 


Indeed, companies such as 
Thames Water - widely 
regarded to have been given 
more stringent targets - were 
confident of achieving what 
they called "satisfactory 
returns to shareholders". 

Analysts define “satisfac- 
tory” as dividend growth 
approaching an annnaj rate of 
4 per cent above inflation for 
the sector as a whole, against 
expectations before the review 
of 3 per cent 

The price review's finding s 
make the sector look much 
more attractive in terms of 
returning a stable income. 
Some analysts question, how- 
ever, whether investors should 
get over-excited about the sec- 
tor’s prospects. “You have to 
ask whether it will out-perform 
the market over the next few 
months,” says Mr Bill Dale, an 
analyst with S G Warburg 
Securities. While the equity 
market will be driven by recov- 
ery, the risks such as increas- 
ing environmental legislation 
continue to affect water shares. 

The case for water invest- 



Jun 1993 
Sores*. FT GflBtV* 





| FCTtFORMANCE 

SinCT nor.v.u: 

VX-j | 


Water & Sawwag* 

ActuB price 

Bnxts 

nwa-aooi) 

% 

ftrttta - 

pooaa 

On 

DwktereJ 

yM 

H 

Coupoure} 

•mufMfflfafia 

parHM»gRMn 

n 

Compoorid 
MnuNdtektaW 
pw sham goeft 

Share prto* 
matatia 
Ntair 

t 

Anglian 

1.5 

13 22 

5.19 

8.90 

10.49 

-447 


Northumbran 

2.5 

82.8 

4.84 

1.62 

KOI 

1148 . . 


Nortiwesi 

2.S 

2600 

521 

12J2S 

1010 

-Cto . • 


Severn Trent 

0.5 

281.4 

4.97 

835 

11.18 

.. 181 • 

n 

Soudwm 

4.0 

127.5 

<91 

10.95 

11:40 

4.48 


Soutn West 

1.5’ 

93.0 

8.17 

2.34 

1003 

■ito' " 


Thames 

05 

241,7 

5 l 48 

1034 

1048 V 

■ 


Webn 

05 

144 J2 

438 

10.83 

1089 

• 1534 


Wessex 


103.3 

4,58 

1011 

1131 

1M8 


Yorkshire 

2-5 

1433 

5.13 

9J7 

1031 

•jja 


WSGHTEO AVERAGE \S 

1593 

5.18 ^ 

0.10 

10.80 




;;f H * i i Sh 


*1 Q tram 1997-Q8 


Souraatt Caret** m»n. I 


, ] - 4 lit' 1 

>• 

v V. 

i 1 •• .1'-.* 

>■ .,nJ {I 


meat becomes stronger when 
looking a: individual compa- 
nies. Following the review, 
they can be placed in four cate- 
gories: 

■ The Winners - Anglian and 
Southern. Both have been 
given high K factors relative to 
their capital spend. Anglian's 
K factor was in line with esti- 
mates. but the capital spend 
has been sharply cut from a 
forecast £1.95bn to £1.4bn. 
Southern also comes up 
trumps with a K factor at the 
top end of the range and 


authorised commitments at 
£l_2bn - bang in the middle of 
expectations. 

■ Second Place - North West, 
Severn Trent, Northumbrian, 
Welsh. North West, identified 
as one of the most efficient 
companies on water and waste, 
is already boasting about hav- 
ing beaten Byatt’s efficiency 
target of 1 per cent cost 
savings a year. 

Severn Trent, which is not 
heavily exposed to the expen- 
sive coastal clean-up legisla- 
tion, got a decent K of 0.5. on 


squeezed capital expenditure of 
£l.9bn. Northumbrian is confi- 
dent it can live with the tough 
targets it has been set, even 
though rated, by Byatt os mm 
of the least efficient on water 
and sewerage services. 
Although Welsh was given a 
positive K of (15 against expec- 
tations of a negative number, 
it still has tough efficiency tar- 
gets. Nevertheless it has a 
strong balance sheet 
■ Best of the pack - Wessex. 
Thames and Yorkshire. Wes- 
sex received a K roughly in 


line with expectations at 1.5 
and was slightly squeezed mi 
spending with capital expendi- 
ture of £5QGm. Yet increasingly 
the fixture of this company will 
depend on its waste manage- 
ment business. 

Thames and Yorkshire 
appear to have been given 
rhaltop gin g targets. 

■ Left behind - South West 
Water. It is pointless to con- 
sider the K of 0.5 given to 
South West until the MMC has 
a chance to examine Byatt's 
reasoning. 


• -!!i Jiuf 

. ,*.! in 

rr.ei|Mi 

. .•ilmitW 
■ iv tilers 
■ .- -v.Uon i 
-,i.u-r» M'li 
Vi 

: iit'tlubi 

■« .ft ..f tft 


What tc 


New Issues 


Pillar Property Investments is 
coming to the market valued at 
£l69.7m. Set up by British 
Aerospace and financial back- 
ers as a vulture fund to prey 
on quality properties in 1991, it 
has Raymond Mould and Pat- 
rick Vaughan as chairman and 
chief executive respectively. 

Mould and Vaughan know 
about timing - they sold 
Arlington Securities, the prop- 
erty company they founded, to 
BAe for £278m in 1989. It was 
this expertise which led them 
to take the helm at Pillar. 

A total of 60m shares at 150p 
have been placed with Institu- 
tions, with 15m subject to claw- 
back for the public offer. This 
represents only a 5 per cent 
discount to the group’s net 
asset value. The price is full, 
reflecting the quality of Pillar’s 
£352m portfolio. 

Applications must be in by 
August 5 and dealing will 
begin on August 15. BZW 
underwrote the offer. 


First half results from British 
Petroleum, due on Tuesday, 
are expected to show that the 
company remains on track to 
improve profitability and 
reduce debt. Second quarter 
earnings on a replacement cost 
basis are predicted to be in a 
range of £230m-£3Q0m. BP 
should also benefit from the 
recovery in crude oil prices, 
which have risen from a low 
last February of around $12 a 
barrel for the benchmark Brent 
Blend to the present level of 
more than SIS. 

Improvements in contract 
hire and coach distribution at 
T Cowie are expected to lift 
interim pre-tax profits at the 
vehicle leasing and motor trad- 
ing group by about 27 per cent, 
due on Tuesday. The rise to 
nearly £20m is likely to be 
fuelled mainly by the finance 
division, dominated by Cowie 
Inter leasing- 

Opinions are divided on Har- 
risons & Crosfield, the con- 
glomerate which reports inter- 
ims on Wednesday. The split 


Week ahead 


T Cowie 


Share price rotative to the 
FT-SE-A AS -Share Index 
500 - 


200 - 


1991 92 

Sourc*t PT Graphite 


93 94 


follows the mixed trading 
statement in May, which 
stressed a continuing malaise 
in the pig industry but a good 
performance from UK timber. 
Forecasts range from £45m to 
£55m, against £4&4m last time. 

Wickes. DIY retailer, is fore- 
cast to announce a doubling of 


interim profits on Wednesday 
from E4.1m to between £Sm 
and £9m before tax. 

TI Group, the specialist engi- 
neering company, is expected 
to report interim pre-tax prof- 
its of up to £70m. against 
£62.8m, on Thursday. The 
increase is likely to be domi- 
nated by Bundy, the automo- 
tive and refrigeration tubing 
business. 

On Monday Abbey National, 
the borne loans and banking 
group, announces its interim 
results. Analysts' forecasts for 
pre-tax profits range from 
£400m to £440m, well ahead of 
the £30 1m announced last year. 
There is more disagreement 
about the interim dividend, 
with forecasts varying from 
4.6P to 5.6p, against 4-15p. 

On Tuesday. National West- 
minster Bank is expected to 
report first-half pre-tax profits 
of £600m-£727m. The lowest 
estimate for the interim divi- 
dend puts it at 6.4p per share - 
the same as last year - the 
highest is for 7.5p. 


Directors’ Transactions 


DIRECTORS* SHARE TRANSACTIONS IN THEIR 
OWN COMPANIES (LISTED A USM) 


Company 


Sector Shares 


No of 
directors 


| SALES 

1 Aisr-n Re«J ,. RetG 

| Delyn Group .. PP&P 

I Granada Group ...LiW 

: London Scottish Sank OthF 

Marks & Spencer RetG 

! nfT Capital Partners InvT 

! Sarabur/ IJl Retf 


65.300 

20,000 

145.000 

42.300 
15.170 

225.000 
35,467 


148.864 

17,600 

776.650 

47.799 

65.383 

396.000 

139363 


ADVERTISEMENT 


•BUlLtDIVtg SOCI'E'Fy 1‘XV'ES'Tte'E‘HT TE%MS 


[ PURCHASES 

j 3i InvT 

j BCE Holdings Pens trust] -LAW 

i Ben la! Is ... — RetG 

Boustead — ._..EngV 

Brown |N) Group _ — RetG 

Carpetngtt — RetG 

Chnstie Group ..... OthF 

Dewtiirs! Group Text 

B Oro Mining .... n/a 

Greene King ... Brew 

Herald Invst Trust (Warrant) InvT 

Inveresk PP4P 

Johnston Group BM8M 

McKay Securities — Prop 

Meroiry Asset Man: OthF 

Mezzanine Capital# InvT 

Oceonics OBE 

Protean ptc — Eng 

Quality Care Homes pic Hlth 

Stirling Group Teon 

Watson A Philip RetF 


217.733 

135.000 

9.000 

50.000 

238.000 

20.000 
20.000 

30.000 

10.000 

15.000 

50.000 

24.000 

10.000 
14,755 
10.000 
30.000 

272.000 

5.000 
6.239 

24.300 

3.650 


592.234 

13.163 

10.080 

14.000 
556,920 

48200 

12.000 

39.000 
57.500 
70,350 

20.000 

38.400 

26.700 
26.707 

61.400 

74.700 
13.600 
10.050 
14.862 
12.879 
13.578 


Muu al 5wlllT 

fwlirt 

Cwii 

Csui 

Ail 

Ail 

rxttnrt 

mitaxre 



fill 



sut 

tiU 

Balinf C 

MtacxlUteata 

State fiHta 

T4Q 

700 

580 

539 

Wy 

Slate 


ton 

ABO 

610 

soo 

309 

Wy 

Itote 


Ton* 

MB 

640 

. 

- 

W* 

u 


Mlta 

545 

us 

404 

404 

7*1 

note 


tatertterew 

UB 

458 

631 

537 

Wy 

tote 

tatiof 

Stertef Bores 

740 

748 

SOS 

SOS 

lily 

UOOte 

IbtaitanlBUIrB 

ltaterelf|BM 

&3S 

68 

4019 

4.T4 

Vrty 

a.ore 

IDwqTam 

FMOeiU 

6J3 

675 

506 

506 

i ta 

191000 

BrtetaABteM 

Uzdotecr SftcteAoal 

5JB 

600 

68 

673 

Wy 

*0* 

(0274) XUM 

Mrefatecr State tetd 

MB 

600 

438 

439 

Wy 

non 


natetetr State Mod 

MO 

649 

409 

400 

T* 

2M« 


HntehcrSpreUtaot 

L70 

679 

503 

se 

My 

46*8 


BtatetanQTaa 

AM 

Mi 

- 

- 

-My 

9|88B 

CrtboGe (171-222 673if7) 

teWretocI 

B55 


4.91 


Ufy 

300* 

total OBI. S54 QU) 

-nr ten 

TAB 

748 

505 

SOS 

total 

m 


flrdhrey 

5JB 

- 

■ 

67S5 

*wy 

l 

CMholMti Qoowitor 

Tteltareteota 

545 

MS 

409 

409 

Trt7 

23* 

(OW0717SHJ 

Sort H (date bad 

7J0 

7J9 

SOS 

SOS 

to 

IM.9* 

Cily & Uotropoiftre 

SotaM 

- 

MC 

400 


to 

lOO* 

UJInl* 

tOfmar 

Fiio lore rtn 

- 

700 

SOS 


to 

1810* 


Pnxxxn Xtra 

- 

68 

sot 


to 

SOON 


Motti 

- 

630 

688 


to 

SO* 


PnotenUBw 

- 

6BI 

485 


to 

110* 


Tare 

Ml 

608 

• 


to 

SB 

Uxrii A Hrttedi (0SS2 4B9S11) 

Catenate 

7-1* 

701 

63) 

JJ3 

30 Byte 

1510* 


too 

Ml 

650 

. 


XJre 

1 


SoMfcaa 

U5 

505 

sot 

sot 

Itex 

080* 

note m* nit (WKcaaq 

bnW 

7.00 

1 M 

5-25 

SOS 

tore! 

1*0* 


taoMI 

Ml 

La 

SOI 

301 

■to 

1*4040 


UyddEted 

5JB 

501 

68S 

681 

tart 

230* 


Sritefirtl 

MB 

680 

438 

430 

Ante 

580* 


SrtUSoU 

SM 

584 

4J8 

438 

tartta 

580* 

BOOM 032 W2CH 

BtataU " 

749 

7 M 

5-25 

505 

tentey 

USO* 


Sxtote* 

3JB 

&5B 

402 

402 

Antay 

250* 

M«atei(ra82M7i) 

Non Nre State 

5J0 

508 

343 

SOS 

tote 

2*0* 


no star dm YD) 

US 

651 

488 

488 

tote 

50* 


HonRn 

1M 

BOB 

too 

600 

terete 

so* 

Notttoi coital (snsunnm 

Edtentn 

Ml 

651 

688 

488 

to 

250* 


hurt 

6JB 

600 

488 

430 

to 

1*0* 

Horton Swkffn2E THU 

Wteytanl 

LW 

6M 

Lit 

508 

tend 

580* 



MS 

645 

6 M 

6M 

Kate 

250* 



ua 

630 

48 

48 

tote 

ISO* 



601 

618 

438 

431 

Bata 

50* 



SlS 

505 

6W 

694 

Bata 

80* 

Mma cm fata* jwUBnma 

Bold to VC 

665 

665 

• 


to 

210* 


Rood btoresi Bate 

619 

689 

• 


OxNrttety 599 

MKvdiamzsaiun 

Ten 

675 

68 

- 

■ 

to 

25 

ic«img(na3tfU5i 

Kctatalymt 

748 

700 

50 S 

505 

Antay 

IS 

swto (waTsem 

Sorattatoe 

505 

SOS 

694 

194 

to 

5800 


3O0i Stmt 

Ufl 

BOS 

438 

431 

to 

20* 


Tetania 

650 

650 

638 

6J8 

to 

23 

WooMek 

Prtartr 9fl Actoret 

708 

708 

MB 

50 

to 

2*0* 

(om«nm 


7 M 

7 M 

303 

305 

to 

1*0* 



675 

675 

336 

506 

to 

580* 



BJO 

650 

488 

441 

to 

250* 



5J0 

559 

403 

403 

to 

180* 



3.75 

68 

201 

281 

to 

50* 

YoriaUrttnnTTRMI 

Toretoter 

6H 

661 

- 

• 

to 

IN 


UOn Hires 

650 

658 

408 

488 

to 

UBO* 


U On teres 

625 

625 

409 

469 

to 

580* 


UCtaitare 

IB 

MS 

406 

M6 

to 

80* 


UCbBtere 

680 

5J0 

US 

4J5 

to 

10099 


Value expressed m £0009. tCaprtal shares. Trio test contains afl trareaesana. nckxing 
ffw exercise of options (*) if 100* subsequently sold, with a vstfue over 00.000. 
Information released by the Stock Exchange July 11-15 1994. 

Source: Or $ dus LM The Inside Track Edinburgh 


730(675*55*45. 9re tab* if » if U tatat pa. 


LWUM.WU0 

28dNurtkctetahlK.K 

539flOKS30t29MU5f5*t 

41SS.9WJS67WS 


00*1 retire ir 39 *y potefc 
tutu! wot dan £UK 


Anncnrt 
Sector due 


Uhrfdend (fl* 

Last year This ye 
tnt- Final tort. 


FINAL DIVIDENDS 


Heed ktcita entity bent a 
TtmUiliiiit— Hiljlwa 
tote Manat nwtUf Wux. a 
T ire d M e te lex rttly hei * 

No*auijnfin%Kt. 


Andrew Sykes 

Abbey 

BCE HofcSngs 

Brandon >fre 

Crest Packaging 

Crown Eyrfltosx 

Canton Group — - 

Ednbugh Saw! Cos Trust . 


tad last. £»k7s% ask ksn on un 

OTternrti A arty M fes retire. SJ» fee 80S. 
firm nta itarte 8JS* mad m ham myrtle 
ekes re tetktetai aenr. Sh wttOxte wp to 
253* pe a* tarn 083* rental. BReert Ware* 
atssd|>wfw1 irr i ixh |ri e*. Art vdtay stag 
Syr tare edl (m e nu 

10 dap tafceynrtly. rttaMy In qdfas tire rtartfc 
X* fraoto rentlles ir targe. lata) kw 1% extra jta S 
Bgartfcareuetay 

faebds at Werert tare of B m- pwfdtf ■ s«rtsro* 

rods dxHs; psrtsn 12 arntfe pU Thnd rata fiws 00^01 
tabstJcsoi m pomfe. nesd Meat ntotneCS 
titbit xM,n|B«e no rtOLMB-StteatalOiBi 
•rtfcc m n Ian bn of Meat 1M Wasrt nta In* £S0L 
Mftpwtfa 


FMh (CM) HoMngs 

Scott PUdord 

TR Snider Co'S InvTst. 

W e s tport Grots? 

Wrf W s w y Mw l fiiy I jesds . 

WIBameon T#a HUga 

Wholesale Rtttngs 


Monday 

■Pxxsdey 

Wednesday 

Monday 

Thursday 

Tuesday 

Monday 

Tuesday 

Tuesday 

Thusday 

Tuesday 

Monday 

Thursday 

Thursday 

■Hnasday 

today 


1AM 

7.7 4.15 9.85 


Ho «tMi M) UMk twttcnWtor A 10 dm hUo. 

forUoaaaiOdviloBofiol). 

lo xttA oaS IAN. to occ. tkoioofie. 

H b tbstmt Od ■(! 1 Ifay 1ML 
3>byt «0VA)T hriOntxatlr w i rt o 
nUd oaD5W+ aMmtuy rttan. 
Wlqirtkx 

nt|l n> d ti Oi%kaot|U. 

an^VaotiairiRMl 

naltkiUaartkpeM. 


Abbey National BSdc 

ABad Irish Banks Bank 

Anglo A Overseas Tst toTr 

Brtflsh Alcan AhenMum n/a 

British Petr oleum OF 

Bets Global Ecmrgktg Mkts InTr 

Csvardale Group EngV 

Corporate Services Grp SpSv 

Cowie Croup Dot 

Edinburgh Now Tiger Tst tnTT 

Fairway Group PP&P 

HdeSty Japanese Values InTr 

Rnsbwy ttmadar Co’s Trust InTr 

French Property Thiet AiTr 

Atands Pr o o hten t Ethical Irw — InTr 

Gartmore Ba sog big Pac Inv InTr 

Gt yn w o d brtwnallonal Eng 

OoW FMd» Prop Co Ext) 

Covet! A Co 4nTr 

EdWxagh New Tiger T« hTr 

HaBdn HoJcSngs _IV<L 

Hantsona & CrostMd DtvH 

Waaa Select Ins Ri Frt$ 

Holmes Protection Grp — ..SgSv 

Ir weabn ant Trust of Guernsey -fnTr 

Iwwy iStee Isis Tat InTT 

Johnson Second Fry IMS InTr 

KMmrart Bsnson Group MrBk 

Law Debaottee Carp InTr 

Unwin House HseG 

Nat West Bank Bar* 

Nawmariwt Ventue Cap InTr 


Mm. kdftg UB.in. W top aodet or posdtj. 

Mn. depoa swoa K*> (Mad Mr « mA tan. 
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WKka 

BdMa 

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Zroca 

Cham 
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Manaey 

Thursday 

Thtasday 

Friday 

Tueadayf 

Tuesday 

Monday 

Monday 

Tuesday 

Tuesday 

Wednesday 

Friday 

Wednesday 

Friday 

Thtoadsy 

Monday 

Thuradey 

Tuesday 

Monday 

Tuesday 

Wednesday 

Wednesday 

Monday 

Tuesday 

Friday 

TlHssJoy 

Friday 

Thaeday 

Tuesday 

Wednesday 

Tuesday 

Tuesday 

Wednesday 

Thursday 

nonday 

Thursday 

Tuesday 

Wednesday 

Friday 

Wednesday 

Tuesday 

Thuradeylf 


lowdends are shown net pence par stare and am Jdfusud ftv any M ta varinp satp sue. 

Reports and accounts are not normary avaflable urtS about 6 w«As aftarthe boad meedna (a 

sppraee pre Bn u a rf mtfts. 8 14 quataty. 4 2nd quarterly. * 3rd Quarterly 


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Retail sales 


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r:.*ti»rl<ta C8 
. place of 
'i.i •:<. or rvvti b 

s ••« v.ri(^ an 1| 

•iu-tv are wan 


T he beginning of the 
week was marked by a 
high level of spiling in 
blue chip retailing companies. 
David Quarmby. one of the 
joint managing directors of J 
Sainsbnry, sold more than 
35.000 shares at 393£p, a total 
reduction erf 27 per cent from 
his parting holding. 

At Marks and Spencer, 
Andrew Stone sold more than 
13.000 shares, a 15 per cent 
reduction. 

The largest sale of the week 
was not in a retailer, but at 
Granada Group. Charles Allen, 
who heads up the television 
operations, sold 14SJ000 shares 
at 537p_ The company said the 
sale had been made to flind the 
purchase of a house, but we 
note that the period of 
outperformance that the stock 
has enjoyed over the past year, 
appears to be ending. 

Nigel Alliance is already a 
substantial shareholder in N 


Brown Group, home catalogue 
retailing company. Bis stake 
accounts for more than 12 per 
cent Last summer he sold a 
considerable amount of stock: 
800,000 shares around the 190p 
mark after adjusting for the 
ane-fbr-one rights issue 
announced la the middle of 
July. Since then he has been 
buying stock: 238 JJ 00 shares 
aro und the 231p nuuk. 

Johnston Group is a 
tightly-held stock in which 
family interests account for 
almost 50 per cent of the 
equity. The last time Michael 
Johnston bought stock was 
more than a year ago around 
the U4p mark. Since then, the 
company's stock has 
outperformed the market by 70 
per cent and analysts forecast 
results moving from loss to 
profit tins year. 


a t t(H> esri 
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rs 


Vivien MacDonald. 
The Inside Track 


PREUWNARY RESULTS 






Company 


Aetata 




Prices tn omce mare ofteiee Mcsm 


Bradero Props. 

1(T 

TO 

15 

3.70 

Sough Eatatn 

Ctek Conna. 

3«r 

353 

3« 

2450 

ACE Heldtegs 

Chfltem Rodhi 

242- 

265 

205 

1&90 

CLT 

Davenport Vamen 

167 

156 

113 

3250 

Evans Hteahsw 

Great Southern 

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627 

475 

71.11 

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Do. Prt 

239- 

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180 

1&29 

Sendee Carp bit 

Low (Wmj 

22S* 

324 

108 

200.00 

Tosco 

KMC I 

T59§§ 

166 

159 

11100 

Britton 

Schotea 

2SO- 

248 

183 

96.10 

Kterean 

SpMTfJ.WI 

n«r§ 

740 

740 

48.90 

Hasbro 

Spew (J.WJ 

loocr 

740 

740 

S2JJ0 

Mattel 

Towles 

265* 

ssa 


4SS. 

London City 

Trans World 

181 

1GB 

173 

7080 

EMM* 

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% 














*ri*t 


*Vi»| 



FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


WEEKEND FT 



FINANCE AND THE FAMILY 




t l 




Drive down your 
car insurance bill 


Joanna Slaughter explains why most people are paying less 

C ompeti tion, better under- of th e m. Direct Line, is the largest Man? young drivers who had 

writing and fewer thefts motor insurer in the OK- - been shielded by their parents' 

have been good news for The irony is that although they insurance have hegn hit bard, too. 

drivers. Over the past started oat as niche nlavers. thev A mirew hi the latest nf 


C ompetition, better under- 
writing and fewer thefts 
have been good news for 
drivers. Over the past 
year, some motor insurance premi- 
ums have fallen by between s and 
10 per cent, according to Mark 
Wood, managing director of the 
Automobile Association’s insurance 
and financial services. 

He says: “Hie absolute incidence 
of motor crime reduced very 
shandy in 1993 and there has been a 
massive number of new market 
entrants, both from continental 
Europe and new start-up 
operations. Traditional insurers 
have been reducing prices and the 
new direct writers are paying to 
build tq> a position in the market" 
Direct insurers sell their policies 
over the telephone, cutting out mid- 
dlemen, and probably account for 
around a third of the market One 


of th e m. Direct Line, is the largest 
motor insurer in the UK. - 
The irony is that although they 
started out as niche players, they 
now tend to occupy the 
ground, leaving the niches to the 
conventional insurance companies.. 

Michael Edwards, deputy manag- 
ing director of The Insurance Ser- 
vice - the direct insurance arm -of 
Royal Insurance - says much of the 
cross-subsidy between good and had 
risks has been eliminated due to 
changes in underwriting techniques 
in recent years. Inevitably, though, 
this has not benefited everyone. . '■ 
The virtual mid of the 60-year-old 
knock-for-knock a gre^mPTri: — under 
which insurers agreed to pay clatmR 
presented by their policyholders 
irrespective of their responsibility 
tor an accident - that com- 

prehensive drivers are no longer 
subsidising third-party risks. 


What to look for in an insurer 


R °hiil safe 


A number of factors are taken into 
account in the calculation of car 
insurance premiums, including the 
type of business the underwriting 
company wants to attract But 
while motorists cannot change 
their age, place of residence or 
occupation, or even build a garage, 
simply to satisfy an insurance com- 
pany, there are ways to cut insur- 
ance costs. 

■ Restrict the cover to named 
drivers, particularly if only you 
and your spouse drive the car - 
this can cut costs by more than a 
third. 

■ Pit a security system. But make 
sure the system you pick is 
approved by insurers before it is 
installed. 

■ Agree to a larger voluntary 
excess. Paying the first £100, £500 
or more of every claim could 
reduce premiums considerably. 

■ Settle for third party, fire and 
theft rather than a comprehensive 
policy if you have a low-value car. 

■ If you are a member of .a union, 
or other professional or voluntary 
organisation, or work for a large 
company, ask whether it has a 
group discount scheme with a par- 
ticular insurer. 

■ Special deals can be found for 
many categories of driver. Different . 
insurers offer lower rates or tai- 


lor-made policies for women, the 
over 60s, public sector employees, 
or drivers with a low annual mile- 
age. 

■ Cars more than 10 years old 
could be Insured under a "classic 
car" polity, which is often cheaper 
but usually invoIve6 mileage limits. 

■ If you have more than one car, 
some insurers will offer discounts 
when you insure them all together, 
on the basis that you can only 
drive one car at a time. 

Motor insurance Is sold in so 
many ways that drivers can find it 
difficult to know where to look. 
Should they start by telephoning a 
direct insurer or a centralised bro- 
ker, or make their first port of call 
tiie traditional highstreet broker? . 

Wood says: "Direct insurers pile 
it high and sell it (heap. Bui con- 
sumers should look at the excesses; 
look at what to covered and not 
covered; and ask a serious number 
of questions. Of course you should 
get a quotation from a direct 
writer, but you should also ring an 
insurance broker.” 

Price to not the only consider- 
ation, says Wood. "If you have a 
riflim, you have an advocate with 
the insurance company .if you have 
a broker. If you are with a direct 
insurer you. have to negotiate with 
the co m p any by yourself.” 


Many young drivers who had 
been shielded by their parents’ 
insurance have been hit hard, too. 
A survey in the latest edition of 
Which?, the Consumers’ Association 
magazine, shows that the cost of a 
policy for a man with an expensive 
car, whose Wife and son are also 
covered, has almost tripled over the 
past two years. 

Young drivers with high-value 
cars who arrange cover in their own 
names are likely to find this very 
expensive. J asked three direct 
insurance compaidas and three bro- 
kers to give quotations tor a 24- 
year-old journalist with one speed- 
ing conviction who was seeking 
comprehensive insurance for the 
first time on a 1992 Ford Escort 
XR3L One quotation was to be 
based oax a south London post code, 
the other on a post code in Norfolk. 

Direct Line, Churchill and The 
Insurance Service would not cover 
either risk. AA Insurance . quoted 
£4^55 On London) and £3,282 On 
Norfolk), with a £115 compulsory 
excess. Telesure, the UK's first tele- 
broking company, produced rates of 
£3,508 (London) and £2,647 (Nor- 
folk), but with a £350 excess. And 
Swinton quoted £4,086 (t^indnm) and 
£2,884 (Norfolk), with a £600 excess. 

Many young drivers cut costs by 
taking third party - the legal mini- 
mum protection - instead of com- 
prehensive cover. Simon Ward, 
Telesure's managing director, says 
this would cut the cost for the south 
London driver to £1,705. 

Costs fan when young motor- 
ists have established a no-claims 
driving record. If the south London 
driver had completed four years 
without a claim, the AA would have 
quoted a premium of £1,742. 

No insurance company is a best 
buy for every risk, and drivers 
should not accept the first quota- 
tion offered. Direct insurers tend to 
be around 10 per cent cheaper on 
many standard risks but are 
unlikely to offer cover to drivers 
who own high-value cars or who 
live in a high-risk area. 

Edwards says his company will 
not quote on 10 to 12 per cent of 
motorists. But Tetesure scans 150 
schemes from 32 insurers, and Ward 
behaves it can quote tor 99 per cent 
of the motorists who come to ft. 
Meanwhile, James Duffel! of Nor- 
wich TTninn - a broker-orientated 



Beat insurance buys for krarestrfsk 


Best Insurance buys for highest risk 


Swinton 

The tna. Sendee 

Jartttne 

Countrywide 

Bradford Pennine 

EndaMgb 

The Leeds 

AGF 

Bain Clarkson 

C E Heath 

MT 

Orton 

AA 

Direct Line 
Ibeoc 


company which does not have a 
direct arm, says: "We are much bet- 
ter for hot hatches, younger drivers 
and executive cars-" 

Tikfi other insurers, Norwich also 
has such “extras” as standard 
breakdown cover for women and 
older driven; no loading for unga- 
raged cars; -and a Bnriterf mileage 
poBcy that brings down costs for 


Premium 

Cxceee 

Type of 


Premium 

Fxca** 

Type of 

£ 

£ 

provider 

Provider 

£ 

£ 

provider 

219 

228 

150 

75 

Intermediary 
Direct insxo 

The Ins. Service 
Countrywide 

395 

434 

75 

300 

Direct tna co 
kitemwKflary 

233 

100 

Intermediary 

MT 

468 

75 

Insurance co 

236 

150 

kitarmecSary 

Jadine 

474 

100 

Intermediary 

249 

100 

Insurance co 

AA 

491 

100 

Intannediai’y 

271 

50 

Intermediary 

Swinton 

507 

- 

Intermediary 

275 

100 

Intermediary 

Eagle Star Direct 

. 511 

• 50 

Direct Ins oo 

278 

50 

Insurance co 

Independent 

517 

50 

Insurance co 

279 

100 

Intermediary 

Direct Line 

521 

50 

Direct lns.ee 

282 

100 - 

hrtsrmedbry 

Link 

526 

200 

Insurance co 

288 

75 

Insurance co 

Prize! 

537 

50 

Intermediary 

290 

100 

Insurance co 

EndsWgh 

537 

50 

' Intermediary 

292 

100 

intermediary 

The Service 

537 

50 

Insurance co 

293 

50 

Direct ha co 

C E Heath 

545 

100 

Intermedia^ 

297 

100 

Insurance co 

Bank of Scotland 

550 

- 

Intermediary 


the occasional driver. 

Although direct insurers are often 
the cheapest for the "average" 
motorist, this is not always the 
case. Insurance brokers gave seven 
out of the 21 lowest quotes, accord- 
ing to Which? 

The tables show the 15 most com- 
petitive quotations obtained by the 
Consumers’ Association for a typi- 


cal family car - in this case, a four- 
year old Rover 820SE garaged over- 
night The policy covers a 45-year- 
old manager of a printing company 
(with a toll licence and 25 years' 
driving experience) and his wife. 
The d river has a frill no-claims driv- 
ing record, no floHiifante riflhm or 
convictions, and drives to work. 

The Which? survey revealed huge 


Suck ContmanT AaocMon 


premium variations, even for this 
stamkrd cover. While Swinton - a 
broker - quoted £219 for the lowest- 
risk area, five insurers charged 
more thaw £500. Similarly, the cost 
of cover at The Insurance Service 
for the higbestrisk area was £895, 
but premiums with the five dearest 
Insurers topped £1,000. The Pearl 
charged a staggering £2,431. 



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vi WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


FINANCE AND THE FAMILY 


'Smug and greedy trusts 5 


LOW CHAfKUE EQUITY FUNDS 


Fund 


Mnfcnum 6mn w H 




*1" 


Due 


Syn 


UK EQUfTY OROWTH 


T he spotlight has 
been on the life 
industry debate 
over the disclosure 
of charges. From 
next year, life companies win 
have to reveal to private inves- 
tors the amount of commission 
they pay to financial advisers 
for selling their products. 

Unit trusts, which also pay 
commission to inter- 

mediaries have so for escaped 
the same scrutiny. However, a 
prominent figure in the unit 
trust industry, Tim Miller of 
Portfolio Fund Management, 
believes that Britain’s unit 
trusts are smug and greedy 
and need to change radically if 
they are ever to became mass- 
market investments. 

Miner used to be marketing 
director at M&G, the UK's 
largest unit trust group, after 
being managing director of 
Framlington unit trusts. He 
believes that a clear explana- 
tion of the risks, rewards and 
costs involved is the key to 
attracting a broader public. 

A working party of the Secu- 
rities and Investments Board, 
the financial services watch- 
dog. is studying disclosure of 


unit trust commissions and 
charges. Miller, who used to 
serve on it, says it could help 
both investors and the indus- 
try by recommending that unit 
trusts adopt the style of disclo- 
sure used in the US mutual 
fund industry. This would 
mean showing the effect of 
charges over different periods 
of time using a standard 
growth rate of 5 per cent for 
total return but not distin- 
guishing between income and 
capital growth. 

Tor many years, the unit 
trust industry has preened 
itself in comparison with life 
companies because of the 
transparency and apparent low 
level of its charges. But . I think 
we may have been deluding 
ourselves,” says Mfiler. 

The typical unit trust makes 
charges of 6 per cent initially 
and 1.25 per cent annually, 
adding up to 31 percentage 
points over 20 years. This is 
more than twice the total of 
13.25 percentage points over 20 
years which was the limit in 
force before deregulation in 
1970. 

The dubious honour of run- 
ning the Hi ghps t- rhat- fiing unit 


trust goes to Fimbra member 
Knight Williams, according to 
the Association of Unit Trusts 
and Investment Funds. Four of 
KWs in-house trusts charge 
6.39 per cent initially and 2.5 
per cent annually, making a 
20-year total of 56.39 percent- 
age points - more than four 
times the pre-deregulation 
level. 

The accompanying table 


Why unit trusts 
must change if 
they are to have 
wider appeal 


shows a selection of low-charg- 
ing unit trusts With minimum 
investment levels low enough 
for personal investors. 

Money market funds carry 
the lowest charges, followed by 
Index-trackers - unit trusts 
which mirror the performance 
of a stock market index. 

Al thoug h unit trust manag- 
ers already have to declare ini- 
tial and annual char ges. Mille r 
says investors find the 


long-term effect of these appar- 
ently small numbers hard to 
grasp. 

Part of the reason is that, 
until recently, high charges 
have been masked by 
long-term rates of return of 
between 10 and 15 per cent a 
year. 

An annual charge of L25 per 
cent would knock 8 per cent off 
a 15 per cent return but it 
would demolish 25 per cent 
from a 5 per cent return. 

“The US system makes 
charging policies crystal clear 
and the result is widespread 
competition on charges." said 
Miller, who suggests that 
applying the US system in 
Britain could help unit trusts 
gain investor-confidence and 
increase their share of the 
savings market from the cur- 
rent 3 per cent to something 
more like the 17 to 20 per cent 
savings market share of Ameri- 
can mutual funds. 

The leading exponent of low- 
cost funds in the US is Van- 
guard group of Valley Forge. 
Pennsylvania, now ranked sec- 
ond to Fidelity in size, having 
climbed from S7bn assets 
under management in 1983 to 


around 511-Sbn. (In the same 
time. Fidelity grew from &Mbn 
under management to S221bn.) 

Vanguard charges 0.4 per 
cent annually on equity funds 
against an industry average of 
lAi per cent, and 0.26 per cent 
on bond funds against an 
industry average of 0.55 per 
cent 

Last year, a comparison by 
Mornings tar Inc.. the Chicago- 
based financial services and 
information firm, found that 
Vanguard’s bond funds had 
averaged an awniiat return of 
11,33 per cent over the past 10 
years against Fidelity’s 10.83 
per cent, allowing for charges 
and expenses. Over five years, 
Vanguard’s return on bond 
funds was 11,23 per cent 
against Fidelity's S3 per cent. 

But Fidelity was ahead on 
equity funds which had pro- 
duced an average return of 
14.01 per cent over 10 years and 
16.23 per cent over five years, 
against Vanguard's 10.33 per 
cent and 1252 per cent aver- 
ages for the same periods. 

Jack Bogle, chairman of Van- 
guard. is also a believer in the 
concept that a randomly-se- 
lected portfolio of stocks often 


Fleming Growth 

10.000 

0 

1 5 

9080 

10 

13030 

83 

14&57 

15 

mml UK Cap«Ji 

5.000 

a 

1.0 

103.44 

« 

130.55 

57 

311.77 

12 

Murray UK Growth 

500 

1 

1.5 

100.55 

53 

iiast 

106 

12ft 19 

50 

Sector avgi'no. of hnda 




9093 

143 

131.43 

131 

127 47 

118 

UK EQUITY QEMCUUL 

Rerning Capital 

uuno 

0 

1.5 

VBJS 

20 

120.03 

76 

121 23 

63 

Gortmere UK index 

5 MO 

0 

as 

103.12 

11 

T3&2S 

20 

15136 

4 

Lazard tncona & Growth 

5X00 

0 

u> 

iw.es 

5 

13583 

15 

13039 

26 

Sector avgrtra. cl funds 





111 

127.43 

95 

152.69 

80 

UK EQUITY rNCOMX 

Reffling Income 

10.000 

0 

1.5 

104.33 

14 

126.08 

54 

11091 

68 

beard UK ircorr* 

SMCt 

0 

1.0 

1W4T 

13 

13506 

23 

154.49 

5 

Murray Equity Income 

500 

1 

1.5 

99.98 

43 

12263 

72 

131.93 

49 

Sector ovg/na of fends 




99.78 

104 

12798 

101 

T 32.64 

94 

UK 3MALLERS COS 

Abertorth UK SmaSer cos. 

6.000 

0 

08 

108.51 

SO 

1S9.51 

17 


. 

OSnenskmal IK SmaSer cos. 

5.000 

0 

04 

108.49 

16 

147.66 

29 

10954 

28 

Lazard Smaller cos. Growth 

5.000 

0 

1.5 

107.03 

25 

165.18 

12 

13054 

6 

Murray SmaBw cos 

500 

1 

1.5 

108.77 

19 

174.72 

8 

108,74 

34 

Sector Bvgfna of funds 




10053 

68 

149.03 

80 

11852 

52 

UK BALANCCD 

Caanove UtSty & Bond 

annn 

02 

05 

10421 

3 


. 



Sector avgfna of fends 




99.93 

43 





MTERMATIOMAL BALANCED 

MW Joint Investors Balanced 

10,000 

0 

1j5 

10079 

2 

13095 

10 


p 

Sector avgtoa of fends 




101-09 

25 

131.66 

19 




til 


t 

L 


performs as well or better than 
stocks picked by professional 
fund managers. 

“Under good and bad man- 
agement alike, a fund provides 


a gross return that is reduced, 
dollar for dollar, by the cost 
incurred in its ownership, 1 ' he 
wrote in a book published in 
the US {Bogle on Mutual 


Source: Autif, Mtcropof. unit trust groups. T7ie table straws (he perf or mance of C1O0 invested to Jufy 1 19SM (offer to 
bid. not income reinvested! 


Funds, Irwin). •'All other 
things being equal lower costs 
mean higher returns." 


Barbara Ellis 


The Professionals 


Investment managers; factfiJe 6 


A discreet lifting of the skirt 


Cazenovfl 

(Cazenove Fund Management) 
Established: 1823 


» ■ J» . *•. =^-v_ . 


Joanna Slaughter visits Cazenove in a series on private client investment managers 


D iscretion is of 
prime importance 
in the private client 
department of 
stockbroker Cazenove & Co, so 
much so that the Ann’s part- 
ners decline to be quoted by 
name in the press. As a spokes- 
man says: "We have never 
advertised. But we must occa- 
sionally raise our profile." 

Cazenove’s most public piece 
of profile-raising was probably 
the launch of its unit trust sub- 
sidiary seven years ago, which 
one partner described as “Caze- 
nove lifting its skirts a little”. 
The skirt-lifting was designed 
to provide the firm with a 
shop-window. The holdings in 
the core trust, the Cazenove 
Portfolio Fund, which has a 
minimum investment of £5,000. 


replicate those of a typical pri- 
vate client portfolio. 

The private client division of 
Cazenove Fund Management 
uses unit trusts where appro- 
priate - a spokesman reckons 
a portfolio needs to be worth 
some £lm before it justifies a 
direct investment in individual 
overseas stocks - but its fund 
managers will not necessarily 
choose the house collective 
funds for clients. 

Cazenove & Co is an inde- 
pendent partnership, wholly- 
owned by its 60 partners, arid 
Cazenove Private Client Portfo- 
lio Management acts in an 
agency capacity on behalf of 
its clients. 

Four partners oversee the 
private client department, and 
15 managers look after clients’ 



portfolios, assisted by nine dep- 
uties. 

All new clients are inter- 
viewed by a partner, who 


assesses their investment 
requirements, and places them 
with the fund manager most 
suited to them. 

Private clients come from 
partners’ families and friends, 
from the families of companies 
that Cazenove has brought to 
the public, and from personal 
introductions from solicitors 
and other advisers. Cazenove 
accepts new clients only on a 
discretionary basis and they 
must use the firm’s safe cus- 
tody arrangements. 

There are no fixed fees. Cli- 
ents pay a sliding scale of com- 
mission and a 0.1 per cent safe 
custody fee. Cazenove robustly 
defends its adherence to tradi- 
tional charging practices, argu- 
ing that a fixed annual fee 
“encourages you to do nothing 


44 


Regrets 


I’ve had 


a few. 




INVESTMENT OF £1,000 IN DECEMBER 1945 


Foreign & Colonial 
Investment Trust PLC** 

Higher Rare 

Building Sociery Account* 


1970 

1985 


£30,269 

£191,470 


£2,554 

£8,489 


mm £ 


iSs? \ i ,y ■mm *®** •• 'Cfi- « ?i; 

1 v"; •. - : sip?" ' : sr* 2" * . .a*;: : 


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Stan saving for your future now with 
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For further information, telephone the 
number below stating where you saw this 
advertisement and the coupon reference. 
Alternatively, post the coupon below. 

Share in the success. 


r 


iA HOUR PHONE SERVICE 0734 828802 


Foreign Colonial 


INVESTMENT TRUSTS 


Pa, > copy gw Nvme imcaw Phn bodnr iad vploan Cm. and tti, coapoa k 
L imnri.ro Bn & ftiM Batata* RQiOWW. 


NAME 


1 AQQRESg 


POSTCODE 


REF: FT 3CV7/94 


wma —meg 8ZW. Tfc viuftu n a ram nrihblc Ben Mkrapal igSJltt* faatum Figure, , 

sc nmnd ■"GUeubm by Piadm A GafaoM kliBaftmcBl Led uni mid-ndiur pneu. net 

'_* — pnu r *~in~iT r , „ i I" ~ t iiiW fl u i ■ tutor H Vli Hm mmn i,,ni|i 

e of me lineman mm ml i*a nmberof DADO. Tfca wine gfrium rad tte tttctm Ah dam raa «iB m 


1 n os KMrir « Ac houic- 


Dcemba ll«4 fimic “ JOA Jmlud a* Med a* 
me tcIiumH. w 3 l„ D e e m hr , I l**M flffoc n JWi J — 1 

Mpv Fanitpi <k CaknM Mnii(o»cm Ufl 
li — m and known ms* ora rm 



for a client. We think commis- 
sion is fairer to clients." 

Portfolio valuations that are 
sent to private chests, show 
the performance on the first 
page: every transaction is item- 
ised: and the client is provided 
with an income audit trail. 

The house investment style 
is described as “international 
and equity-orientated, tending 
to the conservative, with a lit- 
tle spice here and there”. 

The private client fund man- 
agers aim to create strong 
diversified equity portfolios, 
and they hare access to the 
research and resources of the 
whole firm. The Cazenove UK 
investment research depart- 
ment follows some 350 compa- 
nies. and Cazenove’s position 
as a corporate broker provides 
a ring-side seat for new and 
smaller companies. 

Cazenove is broker to 51 
companies in the FT-SE 100 
share index, thus providing 
private client managers with 
opportunities to meet these 
managements. The firm has 
offices in North America. 
Europe, Japan. South East 


Regulator SFA 
Number of offices UK: TTwea (London. Salisbury, -Jnriey) 

Number at offices worldwrfd*: 8 . 

Funds under managements £3bn (private clients); £8bn (total) 

Number of UK private efients: 3JM0 fv. ' '-?£ 

Number of expatriata/forelgn national private clients: 150 

Mrthnum investment for private oBanta; No rigid rulss" ! • j, V.- f.wjL'-'.'i 

Currant asset allocation for private clients: UK eqeMat, 51H; oversee# equates, 20%: taed-WerasL 
(cash, kndeK-Snked) 29% •’“/% • 

Average annual portfolio turnover 30% 

Fees: Discretionary cBents. sScfing eommtesioa plus 0.1% safe custody charge ' 


< ’ . ' 








Asia, Australia and South 
Africa, which feed macro-eco- 
nomic and corporate informa- 
tion to the UK fund managers. 

The managers looking after 
private clients have a daily 
briefing from Cazenove & Co. 
whose research department 
provides a list of recommended 
stocks, but there Is no compul- 
sion to buy these. 

The conclusions of the asset 
allocation committee, which 
meets every three months, are 
tailored for each portfolio, in 
line with client requirements. 


Currently the recommended 
private client portfolio weight- 
ing is 51 per cent in UK equi- 
ties, 6 per cent in Europe, 5 per 
cent in Japan, 5 per cent in the 
Far East, 3 per cent in the US 
and 1 per cent in emerging 
markets. The remaining 29 per 
cent is in cash and index- 
linked gilts. 

The figure for cash is histori- 
cally high but Cazenove has 
been cautious for some time, 
partly due to uncertainties sur- 
rounding US interest rates and 
the expectation that UK inter- 


est rates have bottomed out. 

Cazenove is uncommon is 
imposing no minimum invest- 
ment, and there is a huge vari- 
ation in the size of the private 
client portfolios. Sums of less 
than £100,000 are likely to be 
directed to the unit trust sub- 
sidiary but the spokesman 
says: "We think it is quite 
inappropriate to have a mini- 
mum investment written in 
stone. A young member of a 
family is not going to be 
turned away, if he has only 
£50,000." 


Lower 

fixed 


rates 


HIGHEST RATES FOR YOUR HONEY 


Account 

Telephone 

Nonet* 

hwi 

Mhfcnen 

depeelt 

RMb 

% 

M. 

paM 

MSTAMT ACCESS A/ca 

Binidn^tflffl Mktshiras BS 

First Cfctss 

0645 720721 

Postal 

2500 

5.00% 

Yb 

Bradford & Bingtey BS 

Dbsct Pramhm 

0345 248248 

Postal 

El AS 

5.40% 

YV 

SWptonBS 

3 High Street 

0756 700511 

Instant 

£2JX» 

aio% 

TV 

Notdngham BS 

Poet Direct 

0602 481444 

Postal 

225,000 

5J30M 

YV 

NOTKe A/c* And BONDS 

Exeter Bank 

9 Day Cal 

0382 50635 

9 Day 

£1.000 

6.00% 

MV 

CBy & Metropodlai BS 

Super 60 

081 464 0B14 

60 Day 

El 0,000 

&40% 

YV 

National Counties BS 

90 Day 

0372 742211 

90 Day 

530,000 

7.15% 

YV 

Yorkshire BS 

t Fixed Rate Bond 

0800 378838 

3B.9JB7 

25,000 

&00%F 

YV 


F ixed-rate investment 
accounts continue to be 
withdrawn or reduced 
and new fixed rates are for 
shorter terms and at lower 
rates than of late. 

New three-year fixed rates 
have been launched by Chelsea 
paying 7.75 per cent yearly or 
7.49 per cent monthly. York- 
shire is paying 8.00 per cent 
yearly or 7.75 per cent 
monthly, which is currently 
the best rate on offer although 
lower than the 8.50 per cent 
over four years it was offering 
earlier in the week. 

The trend continues through 
to Guaranteed Income Bonds. 
While the top five-year rate 
remains at 7.75 per cent net 
from Eurolife, the majority of 
institutions have reduced their 
long-term rates in recent 
weeks. However, shorter-term 
rates of one year have been 
increased by Liberty Life and 
AIG Life. The latter has also 
introduced a two-year bond for 
the first time, with market 
leading rates. 

The building societies now 
seem to be concentrating their 
efforts on the authorised over- 
draft front. Halifax started the 
trend in June by announcing a 
redaction in its authorised 
overdraft rate from July i to 
an effective annual rate (EAR) 
of 12.4 per cent 
This was soon leapfrogged by 
Abbey National which reduced 
its rate to 9.9 per cent EAR. 
The Woolwich BS apj Alliance 
& Leicester have since reduced 
their rates - down to 9,8 per 
cent EAR and 95 per cent EAR 
respectively. Rates will also be 
down at the Nationwide from 
August l to 1L5 per cent EAR 
(or 8.74 per cent if you have a 
Nationwide mortgage). Britan- 
nia win also be reducing its 
authorised rate to 12.02 per 
cent EAR, although the £5 per 
month arrangement fee 
remains. 

Christine Bayliss, 
Investment Editor, Moneyfacts 


MONTHLY MTEREST 


HWH HTBKST CHCQUE A/c* ((*««*) 


Halifax BS 

Caledonian Bank 

Chelsea BS 

Asset Reserve 
WCA 
Cbaelc Postal 

0422 335333 
031 556 8235 
0600 717515 

blatant 

Instant 

Instant 

£5,000 

Cl 

£2£00 

£25.000 

450% 

4.re% 

6JXJ% 

625% 

0 V 
YV 
YV 
YV 

OFFSHORE ACCOUNTS (Grose) 

Woolwich Guernsey Ltd 

Internationa 

0481 71S735 

Instant 

£500 

675% 

Yty 

Portman Chanel Islands 

blatant Gold 

0461 822747 

Instant 

£20,000 

620% 

YV 

Confederation Bank (Jrsy) 

HffldMemv 

0534 608060 

60 Day 

£25,000 

680% 

wm 

Confederation Bank Urey) 

(mstnwnt Cert 

0534 608060 

5 Year 

C1Q.000 

525%!= 

vv 

GUJUUUrTFHI INCOME BONDS (Net) 

Liberty Ute 


081 440 8210 

1 Year 

£2,000 

4.90%F 

YV 

AIG Ufa 


081 680 7172 

2 Year 

£50.000 

6BS%F 

YV 

Consgttated Life 


081 940 8343 

3 Year 

£2.000 

&50%F 

YV 

ConscMded Life 


081 940 8343 

4 Year 

E2,0(W 

7.00%F 

YV 

Eurolfe 


071 454 0105 

5 Year 

£10.000 

7.75%F 

YV 

NATIONAL SAVWOS JUCa A BONDS 


tmestanent MG 


1 Month 

£20 

625HG 

YV 


Income Bonds 


3 Month 

£2.000 

&50%H 

My 


Capital Bonds H 


5 Year 

£100 

72S%f 

0M 


Rraf Option Bond 


12 Month 

Cl .000 

6J30%H 

YV 


Penstaleis GO 


5 Year 

£500 

7«00%F 

My 

MAT SAVWOS CCnmCATES (Tn Free| 


41st Issue 


5 Year 

£100 

640%f 

OM 


7th Index Linked 


5 Year 

£100 

3j00%F 

OM 






+W 



Cffidrers Bond F 


5 Veer 

£25 

7XHM 

OM 


This table covers major banks and Bufefing Societies only. AH raise (except mow under heating Guaranteed Income 
Bonds) are shown Gross. F = Fixed Rate (AO other rates are variable) OM = Interest paid on maturity. N» Net Rate. P= 
By Post only. A= Feeder account also required. B= 7 day loss of Interest on eB withdrawals. G* 5.75 per cant Oft £500 
and above, 6 per cent on £25,000 and above. H= 6.75 per cent on E2&000 and above. 1= 6.40 per cant on £2(1000 
and above. 

Source: MONEYFACTS, The Monthly Guide to Investment and Mortgage ftetea. Laundry Loka, North WeWwn. 
Norfolk, NR28 OSD. Readers can obtain an Introductory copy by phoning 0682 500677. 


Who said your 
business canl 
have free banking 

and earn 4.00% 

gross pa? 

Cad 071 -203 1550 during office hours or 24 hour line 071-624 0879 



You can have 60 free 
transactions per month, 
and earn a high interest 
rate on a minimum 
deposit of £2001. 

A L L I E D^T ^ R U S T 

Cnaon goiter (V»«R**r HUL lonAm K4S ttJ 


• V-* ;h* 


-! d. 

w • '■ ■ ^ 
»-»>■' 1*5 


.•■Hi t-i,. Vl( 

-■■uii: I r 


T'*-: i:. i 

‘cr ' ti.ir .••• m' ii. 


a ‘-J.f si::!;*... !■•! 
' m.'in: |i, ,j;;i 

*i-i: r.c ttu* 

^ l sivw »:•- r !t t :i», 
u- i.-jii 

' <'m p„i-| U . s 

tnv 

i bji<* .i iunhcr 4-u 
"no uri!( ( -u < T |. 

'*HUr.-N Ml f«-|>T M>; 


Britannia BS 

Capital Trust 

0535 391741 

Postal 

E2JH0 

537% 

MV 

« «hni: 

Confederation Bank 

Monthly Incoma 

0438 744500 

30 Day 

E2.000 

686% 

MV 

-’0 ill! 

Scarborough BS 

Scarborough 94 

■ 0800 590578 

90 Day 

£25.000 

SJSYiB 

MV 

nlv i: 

Bristol & West BS 

Fbsd Bond 

0272 294271 

5 Year 

£6000 

625% F 

MV 

"» 0.. 

TESSAs (Tax Free) 







1 'A !,.•■ 

Confederation Bank 


0438 744500 

5 Year 

£6900 

600%F 

YV 


HfocUey & Rugby BS 


0455 251234 

S Year 

C3JXNA 

7215% 

YV 


Melton Mowbray BS 


0664 63837 

5 Year 

Cl 

720% 

YV 


Nottingham BS 


0602 481444 

5 Year 

£1 

7.15% 

YV 



' •’*’ ‘l- • I 


" It. 

■* II if - ; 


'■■•ill , 

.... 


>•• 1 : 


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1 •• ’i\l 


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V.... 

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PIU| 


* IMi, 







FINANCIAL TIMES WEEKEND JULY 30/JULY 31 1994 


WEEKEND FT VII 




FINANCE AND THE FAMILY / SMALL BUSINESS 


Questions of 
life and Aids 

An HIV test may still signify high risk in 
spite of a new ruling , says Debbie Harrison 

T he t°ugh discrimination answer the question on the life 
policy of UK life offices insurance form agWng whether you 
against people who have have had an HIV test, do not expect 
been tested for the mV the «nnnnnv to ton von that 






Ufa** *.■* 1 ^ 



7* 


T he tough dis c riminati on 
policy of UK life offices 
against people who have 
been tested for the HIV 
virus, which is thought to cause 
Aids, was apparently relaxed this 
week and should lead to rate cuts 
for life assurance policies and 
endowment mortgages. 

But insurers may still regard 
those who have sought the test as 
high risk. Although the information 
would sot be on the proposal farm, 
it is readily available from appli- 
cants’ GPs. 

The controversial questions on 
HTV testing, introduced in 1987, 
asked If the applicant had ever had 
a test for HIV or sexually transmit- 
ted diseases. The Association, of 
British Insurers this week said that 
insurers should withdraw this ques- 
tion and instead ask if the applicant 
has ever had a positive test result 
or undergone treatment for HIV or 
sexually transmitted diseases. The 
ABI said it was prepared to change 
the wording because Aids-related 
claims since 1987 - estimated at 
£50m - were much lower than 
expected. 

Men and women who voluntarily 
sought the HTV test were classed as 
high risk and either had to pay 
much Mghwr premiums or in some 
cases were refused cover. In 1988, 
when insurers' fears about Aids- 
related claims reached fever pitch, 
premiums for young sf-n g -ia -map 
rocketed, whether or not they had 
been tested. In that year the pre- 
mium. for an Allied Dunbar 10-year 
convertible- term assurance policy 
with a sum assured of £100,000 for a 
30-year-old man rose from £8J6 to 
£22.16 per month - an increase of 
270 per emit 

The same year Scottish Life 
doubled its monthly premium rates 
for younger men while Friends 
Provident rates rose by 180 per 
cent 

The ABI says it expects some 
insurers to reduce these inflated 
rates now that the need for large 
reserves was less critical. Shopping 
around for the best value is still 
essential. Allied Dunbar now 
charges £14B0 Ah* the policy men- 
tioned above and existing policy- 
holders benefit from the reduction, 
as well as new applicants." 

Although you no longer need to 


answer the question on the life 
insurance fa rm a sking whether you 
have had an HIV test, do not expect 
the company to tell you that 
unasked. Our straw poll of compa- 
nies the day after the ABI 
announcement showed that most 
were uncertain about what 
they would, do to implement the 
change. 

“Our underwriters will accept a 
questionnaire from an applicant 
who has scored through the HI V/ 
Aids questions,” said Clerical Medi- 
cal. but they have not yet decided 
how salesmen should approach the 
subject. Abbey Life will be sending 
a circular to its fiaipam an and they 
can meanwhile refer questions be c k 
to head office. 

Legal & General plans to recon- 
vene its Aids working party, and 
with charming candour said that 
the speed of its erwn reaction would 
depend on whether the c om petition 
seemed to be moving foster. 


E ven when insurers pro- 
duce new forms which 
drop the question about 
Aida-testing, they will still 
be able to find out whether you 
have had an Aids-test from your 
CP's medical records. Ivan Massow, 
an independent financial adviser 


men, said: “GPs naturally win ask 
tested patients about their sexual 
history and number of partners and 
this win go on file. An this informa- 
tion win be available to the insur- 
ers." 

Every life insurance proposal 
form asks for permission to contact 
the prospective client's GP - a prac- 
tice condoned by the British Medi- 
cal Association (BMA) provided the 
patient has given consent “People 
have no choice on the matter. You 
simply cannot get life assurance if 
you refuse permission. A handful of 
GPs do not co-operate with insurers’ 
requests but most willingly oblige. 
With this right of access, insurers 
don’t need to rely an the proposal 
form - they can find out anyway,” 
said Massow. - 

Massow urged those who, for 
peace of mind, want an HTV test to 
continue to use sexually transmit- 
ted diseases clinics where confiden- 
tially Is "protected by criminal' 
law. 


S hortly after Prague’s "velvet 
revolution" of November 
1388 an enterprising Welsh 
bride, and her chartered 
accountant husband, started hawk- 
ing brightly coloured T-shirts from 
a rucksack to the first tourists to 
this baroque jewel of a city. 

FOur years later, Melissa Woolf 
runs eight strategically-placed “Mel- 
issa” stores along the city’s main 
tourist routes. She still hangs 
T-shirts from racks an the white- 
washed walls of her shops. But her 
main business, worth more than 
£2 m last year, is »TKne Czech, toys 
and exquisite Bohemian glassware. 

Her husband. James, has become 
one of Prague's biggest property 
developers. His company, Flow 
East, refurbished 60 city centre 
properties last year, turning 
crowded flats into smart offices and 
apartments and buying new homes 
for farmer tenant in the suburbs. 

The Woolfs came to Prague in 
I960. They ware unimpressed by the 
prospects in recession-hit Britain 
and intrigued by media coverage of 
enthusiastic crowds milling in 
squares of baroque beauty and the 
possibilities offered in a post-com- 
munist state. They found the oppor- 
tunities the opening-up of a cen- 
trally planned economy presented 
for service industries such as tour- 
ism, retailmg and pro pe rty develop- 
ment. Their entrepreneurial flair 
and willingness to work a seven-day 
week has allowed both to bufld. suc- 
cessful businesses. 

“I now employ 117 people 
full-time. I visit every shop at least 
once a day and spend two or three 
days a week on the road talking to 
suppliers and placing orders,” says 
Melissa. She buys what she likes, 
and when she really takes a fancy 
to a product, such as the wooden 
puzzle toys bn display in her shop 
on the approach to the historic 
Charles Bridge, she buys a stake in 
the company. 

James helps with the accounts 
and the property transactions. But 
apart from that, the two ran their 
I business lives separately. 

1 - James works from offices in his 
own refurbished building dose to 
the city centre shared with fawanta 
as varied as Saatchi and Saatchi, 
the German Tourist agency, two 
banks and lots of lawyers. 

1 started operating on the princi- 
ple that in raming foreign compa- 
nies and local entrepreneurs would 
want to locate themselves in the 
heart of this beautiful but long-ne- 
glected city,” he says. 

“After investing heavily up front, 
however, most foreign companies 
are cutting back an expensive expa- 
triate employees and training 
locals. They also expect rents and 
other ex penses to be paid out of 
local income while the supply of 
refurbished office space is increase - 
ing all the tbm* So rentals have 




The wrirapranewfal touch: MeBsaa Woof started by doffing T-shirts from ■ rucksack. Now «ba owns eight shops in Prague 

Private life in Prague 

Anthony Robinson on a couple who found a gold lining in the velvet revolution 


stabilised over,” he says. 

Prague, he points out, is as big as 
a medium-sized British provincial 
city, such as Ipswich. But Ipswich, 
and similar towns in western 
Europe, developed on capitalist 
ttnpq after the war. 

Prague in 1990 was different Once- 
elegant shops, apartments and 
otter properties were stolen from 
their owners, either by the Nazis 
after 1938, or by the communists 
after the Prague coup of 1948. Most 
were roughly converted into over- 
crowded communal flats, store- 
houses and the hVp , or allowed to 
decay far 50 years. 

One of the priorities of the Czech 
republic's free market-oriented gov- 
ernment has been- to retain as 
much property as possible to right- 


ful owners and sell state pr o perty. 
But the task is complicated. . To 
whom, for example, should a prop- 
erty expropriated from a Jewish 
owner by the Nazis, then sold and 
later confiscated by the commu- 
nists, be returned? 

So Janies decided to buy only 
folly restituted propert i es with a 
dear owner. Once bought, his next 
problem is persuading fwn«w*g with 
low fixed rents to leave. 

For most life in the city centre 
means over-crowded, badly-main- 
tained fiats. Janies employs a small 
staff to comb local newspapers for 
property in the suburbs. James then 
buys on b ehalf Of frramlnt who thus 
become owners of their own homes 
- leaving him the empty buildings. 

“The property market here is 


about buying, refurbishing and 
renting. A resale market has not 
emerged yet, but it will,” he says. 

Until capital value can be 
unlocked by resale, cashflow profit 
is ploughed back into the business. 
It is a similar story for Melissa, 
whose company has no debt and is 
firranrad from retained earnings. 

“We have three Chech construc- 
tion companies working for us full 
time and the quality of their output 
is rising steadily. Many are Yugo- 
slavs or Russians. They work seven 
days a week, nights as well if 
required,” James says. “It takes 
only six to seven weeks to convert a 
flat in Prague which would take 
three to four months in London.” 

James looks after the legal and 
side of the business. EBs 


partner, Stephen Davis, oversees 
the construction. Problems include 
finding good, loyal staff - not easy 
with unemployment in Prague only 
2 J5 per cent - and the bureaucracy. 
Companies employing more then 2S 
workers are subject to wage control 
and there are fines for slow or non- 
payment of VAT at 23 per cent. 

Finance is less of a problem, 
thanlM to the BStahHwhmant of for- 
eign banks. “Komercni Banka, the 
biggest Czech bank, is only pre- 
pared' to lend for a maximum of 
four years at 1A5 per cent, or seven 
years by private treaty. But why 
bother when you can get 10-year 
loans from German and Austrian 
banks with less hassle? As for UK 
banks, they have missed out on this 
market completely," said James. 


Ten years ago. my accountant 
arranged two policies for me, 
one an endowment, the other 
whole of life. Now the endow- 
ment has matured, he pro- 
poses to charge me CM> per cent 
on tire proceeds for signing the 
maturity form. 

His normal charge would be 
Ll per cent but, in view of the 
amount involved, he expressed 
himself willing to take the 
lower charge. This would give 
Mm £200 simply for signing 
tirn maturity form and a letter 
written by me to tire insurers. 
But I knew nothing of this 
charge until 10 yean after tak- 
ing out the policies. Is this 
normal practice? 

I have a further endowment 
polity written in trust which 
matures in four years. This 
involves one (different) trustee 
to whom I wrote some time 
ago but have received no 
reply. If he cannot be traced, 
how do I replace him? 

■ Whether your accountant is 
entitled to charge a percentage 
on the policies’ proceeds 
depends on the agreement 
between you and him when the 
policies were taken out 

If you are unhappy, the pro- 
fessional conduct department 
at the Institute of Chartered 
Accountants might be able to 
assist you. The address is: 
Gfloucester House, 399 SUbury 
Boulevard, Milton Keynes. 
Bucks MK9 3HL. 

You can replace trustees an 
the present policies by writing 
to the companies concerned in 
order to verity who has the 
power to appoint trustees. 

It might be possible that, as 
settlor, you have this power; if 
so, the companies concerned 
could supply you with forms in 
order to make the necessary 
change. (Answer by Murray 
Johnstone Personal Asset Man- 
agemeniX 

Worthless 

certificates 

I own 200 shares in Norton 
Group pic, which crashed last 
year with debts of £7.5m. I 
understand that a Canadian 
entrepreneur has bought the 
old Shenstone factory at a 
knock -down price. Is my share 
certificate worth anything or 
should I frame it? 

■ Your share certificate is 
almost certainly worthless. 
Unless ft is particularly artis- 
te, framing would merely be 
throwing good money after 


Accountant 
asks £200 to 
sign letter 


1 hold shares in Ferranti 
which are obviously a total 
write-off. As 2 am unable to 

dispose of these shares In tim 

market: 

1* ®y ’dot proce d ure esh-l ‘ 
able to realise the tones for . 


CGT purposes? 

2. Could this be done on the 
last day of the present tax 
year to maximise indexation 
benefit? 

■ To quality for maximum 
indexation onfl to tntnTmina the 
risk of forfeiting all indexation 
(by failing to get the claim into 
the inspector’s hands by the 
end of the tax year), you 
should, on Saturday, April 1 
1995, write to your tax office 
along the following lines: 

“In accordance with section 
24(2) of the Taxation of Charge- 
able Gains Act 1992, I claim 
that the value of my holding of 
(state number] shares in Fer- 
ranti International pic has 
became negligible, namely .... 
and that I should therefore be 
treated as if I had sold that 
holding for that sum today, 
April 1 19%, and had immedi- 
ately reacquired it for that 
same sum, in circumstances 
fatting outride section 105(1) of 
the Act” 

If by chance you reach the 
£10,000 limit for indexation 
losses (between November 30 
1993 and April 5 1995, inclu- 
sive) as a result of actual dis- 
posals etc, them the timing of 
your negligible- value claim 
will not matter. 

Some years ago I bo light some 
shares in a company called 
Equity & General which went 
bankrupt and I have found out 
that the Inland Revenue 
declared shares in this com- 
pany to be of ne g ligible value 
from 14 September 1990. 

I have not previously 
entered the loss on my tax 
returns bat now need to do so. 
Bow do I do this? I would like 
to use part of the loss In the 

tax year 92/93 and part in the 
fax year 93/94. Is this possible 
and to what date should I 
index the loss In each case. 

■ The revised version of 

extra sta tutory concession D28 
(which permits retrospective 
negligible-value claims) was 
published at the end, of May. It 
is too long to quote, so you 

should ask your tax office for a 

copy; if you have any diffi- 
culty, write to the Inland Reve- 
nue Public Enquiry Office. 
Somerset House, Strand, Lon- 
don. WC2R 1LB. 



No Jgptf m pa niJ Bf can bo rrgf**t hr fa 
Fta nM Dim tar tho m ama gban *» tarn 
eoUtm M orthuUao n* bo aww tf bf post 


The new version of conces- 
sion D28 appears to have been 
written in a hurry so we shaft 
not be surprised if you find it 
difficult to understand. Please 
come back to us after reading 
it, with the full background 
facts, figures and dates (includ- 
ing a note of what e le ctio n s 
yon have made - rebasing, pool- 
ing etc.). Without precise data, 
we cannot say whether it is 
possible fear you to make a neg- 
ligible-value claim for only 
part of the gTmrwVmVHng ; there 
is no universal answer, but the 
most common one Is NO. 

If the company no longer 
exists fif it has been struck off 
for example), you will automat- 
ically be deemed to have dis- 
posed of your shareholding an 
the day on which it ceased to 
exis t, by virtue of section 24(1) 
of the Taxation of Chargeable 
Gains Act 1992. 

Granny’s 

houses 

My daughters have jointly 
Inherited two properties from 
tfaeir grandmother. These are 
valued at £25,000 and E28JJ00, 
with sitting tenants. If one 
became vacant and was sold 
for approximately £50,000, 
bow would CGT be cal c ulated? 
Would it 3. difference If 

my daughters lived in the 
bouse before selling? 

■ Your daughters are deemed, 
for CGT purposes, to have 
acquired the houses at their 
grandmother's death at pro- 
bate value, broadly s pe a king . 
The solicitor who acted for the 
executors will be ab le to give 
them the precise figures for 
CGT purposes fit is rather sor- 
nrfcim? that he or she did not 


give them the necessary infor- 
mation as a matter of course). 

By living In the house in 
question, and giving judi- 
ciously timed main-residence 
notices (first in favour of that 
house, and then in favour of 
their present residence, proba- 
bly, with appro p riate periods of 
retrospection), each of them 
could reduce her prospective 
CGT bill on the sale of the 
house, without producing an 
unacceptable CGT bill upon 
any sale of her present resi- 
dence. ft should be possible (as 
the law stands at present) for 
the prospective CGT ball on the 
other inherited property to be 
mitigated in a similar way. 

The rules are complex and 
arbitrary. Your daughters 
shfliiid seek g uidance from the 
solicitor who acts for them in 
the house sale. As a first step, 
they can ask their tax offices 
for the free pamphlets CGT4 
(Capital gains tax: owneroccu- 
pied bouses) and CGT14 (Capt- i 
tal gain fair an introduction). 


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I intend to buy a second home 
hi the south of England which 
win be solely for my own use 
as a holiday home. Zn five 
years I intend to retire, sell 
my present home and move 
into the second home as my 
main and ontylteddemce. 

If house prices rise over toe 
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FINANCIAL TIMES WEEKEND JULY .WIUI.Y JJ 1994 


★ 



HOW TO SPEND IT 


The coolest ways to fight the summer heat 

Lucia van der Post becomes a fan fan, finds that Y-fronts have shrunk and recommends mail-order make-up and beads 



Size matters: Y-fronts have been remeasured and resized for a better fit 
old - in particular the waist- 


G ood news for chaps: 

the new improved 
Y-front by Jockey 
is about to hit the 
shops. Mow you might think 
that there was little anyone 
could do with Y-fronts, that 
they were one 0! those ail- time 
classics that should not be 
tampered with. 

But I have to tell you. you 
would be wrong. 

The boys at Lyle & Scott are 
very excited by their recent 
discovery that there have been 
serious flaws in all previous 
thinkin g' about siting - no one, 
it seems, had ever bothered to 
measure this rather intimate 
area correctly. 

As a result Y-fronts, in com- 
mon with aD other underpants, 
were simply enlarged propor- 
tionally all round as they 
moved from little waists of 26 
to gigantic ones of 54. After 
getting wives, girlfriends and 
even boyfriends to take a host 
of measurements, they discov- 
ered that while turns and bot- 
toms varied hugely in size 
other measurements (most 
importantly the one from the 
navel to the top of the pubic 
bone) varied by an infinitesi- 
mal amount. 

As a result, the portion of 
the underpants that covers 
waists and bottoms is now 
sized appropriately while other 
measurements, from the mid- 
dle down to the pubic bone, 
remain more or less static. 
This, it seems - and here I 
have to rely on the reports of 
the panel - results in much 
greater comfort and makes 
sure the double gusset is in 
perfect alignment. 

The new Y-front incorporates 
all the classic features of the 


band (as integral to the design 
as the bumper is to the BMW). 
Made of woven elastic which 
has great flexibility (did you 
know your waist can expand 
by up to 5in when you sit 
down?) it is the key to the 
Jockey design. 

Whereas most men's under- 
pants are sized simply as S. M, 
L and XL, the Jockey Y-front is 
sized in inches all the way 


from 32in to 5Sin (Marks and 
Spencer's XL Y-fronts go up to 
48 inches). 

It is still made from fine 
ribbed 100 per cent cotton, just 
as it was on that momentous 
day in 1935 when Marshall 
Helds of Chicago filled a win- 
dow with the new Y-front 
underpants and sold out by 
mid-day. At £425 for a classic 
brief (three for £1049) It still 
represents value for money. 


T he second time Z went to New York 
(the first time I was too green) I 
headed straight over to the Bowery 
and dived into Kiehl’s. At the time it 
was one of the world’s best-kept beauty secrets, 
a colt shop for models, make-up artists, act- 
resses, fashion designers and everybody else in 
the know. 

There 1 stocked up on Ultra Facial Moistur- 
iser, Light Nourishing Eye cream, Shine TT 
late Groom (the explanation for many a New 
York model's sbiny tresses) and goodness 
knows what else. Ever since, friends going to 
and fro are given orders and I stock up when- 
ever 1 am there myself. 


M aking my own 
necklaces has 
not been the 
kind of occupa- 
tional therapy that I have ever 
aspired to. But Janet Coles 
sells beads of such beauty and 
diversity that she could tempt 
me. Her mail order brochure is 
beautifully produced - the 
beads presented in an ordered 
fashion with plenty of ideas for 
creating necklaces, jewellery 
and bracelets, writes Lucia van 
der Post 

You do not need to be a 
Flintatonea tan to appreciate 
the latest collection - all 
ancient stones, prehistoric- 
style pendants and neolithic- 
style necklaces. Necklaces 
shown here can all be made 
with materials bought from 
Janet Coles - either by maa 
order (Perdiswell Cottage, Bil- 
ford Road, Worcester, WR3 
8QA, 0905- 755888) or from her 
shop, Janet Coles Bead Empo- 
rium, 128 Netting Hill Gate, 
London Wll. Pendants In kit 
form are £5, made-up about £7. 
Chunky necklaces cost 
between £9,95 and £21 in kits, 
and £L3JiO-£25 madenip- 


Now, four shops in London will be selling 
selections from EiehL Of course it will not be 
quite the same as visiting that strange old 
apothecary In the Bowery, dipping into those 
lotions and potions in their plain jars and bot- 
tles. 

The shops that will stock them are: Harrods 
of Knightsbridge, London SW1X 7XL; Smile 
(Hair Salon), 434 King’s Road, London SW10 
QLJ; Fourth Floor (Hair Salon), Northington 
Street, London WC1N 2JG and Matches, 13 Hill 
Street, Richmond, Surrey, TW9 lFX. 

Kietal’s in Manhattan (109 Third Avenue, New 
York) also operates a worldwide mail order 
service and a hotline: 213-677-3171. 



I am one of the last of 
those Luddites who 
prefer fresh air and open 
windows to air-condition- 
ing. To me, not the least of the 
charms of third world coun- 
tries is their tendency to have 
hotels where you can still open 
windows by hand and can fig- 
ure out how the taps turn on 
without the aid of an instruc- 
tion. manuaL 

But, thanks to the recent 
heat wave in the south of 
England, even I have begun to 
think that maybe a little cool- 
ing air around the house might 
not come amiss. In Bri tain ’s 
climate a complete air-condi- 
tioning system, with attendant 
costs and disruption to the 
household, would scarcely 
seem worthwhile. But for the 
sort of sultry nights and sti- 
fling days that we have been 
having recently, a portable fan 
can make a lot of difference for 
a comparatively small outlay. 

You could spend as little as 
£1659 for a small clip-on plas- 
tic fan by Pifco (clip it to desk 
or bedside table) or as much as 
£138.75 for the largest floor- 
standing Ctanl Cinni is the 
label most approved of by the 
style police, a classic of the 
world of whirring air, trailing 
overtones of ethnic chic, made 
as it is in India. It is. however, 
quite noisy, although I find the 
steady whirr quite soothing, 
romantic almost, reminding 
me as it does of tropical nights 
and sultry B-movies. 

Made of metal, either shiny 
chrome or painted matt blade, 
there are table-top models 
(£8350) and the 4ft high pedes- 
tal version (£185) which could 
cool a good-sized room. Stocks 
of Cinni fans are running low 
in many of their usual outlets 
(Harrods, John Lewis) but the 
Freud Shop, 198 Shaftesbury 
Avenue. London WC2 (tel: 
071-831 1071) has a good supply. 

Xpelair offers a rather 
charmingly straightforward 
fan of the sort that is found in 
offices and hospitals up and 
down the UK. It is defiantly 
untrendy and no-nonsense to 
look at and does the job of 
moving the air around very 
efficiently. The noise level 
varies but the two and three- 
speed models are quiet enough 
for bedrooms if kept at the low- 
est speed. Higher speeds are 
noisy but move more air. Sizes 
range from small table-top 
models just Sin in diameter to 
a pedestal version 16in in 
diameter and 60in high 
The funkiest fan, though, 
has to be the one Viking Direct 
(suppliers of office equipment) 
is giving away free if - here's 
the catch - you spend £150 on 
one of its computers first It 
looks as though it has been 
designed by Ettore Sotsass of 
Memphis fame, has the visual 
charm of a small sculpture and 
runs on batteries - you simply 
press a button and it produces 
a pleasing whirring and cooL- 
lng of the air. It is small 
enough (about 18ins high) to be 
very portable. (Tel: 
0800424444). 

Those heading for enclosed 
spaces sach as operas, theatres 
or tented marquees (last Sun- 
day the temperature in the 
Cartier tent at Smiths’ Lawn 
was reckoned to have risen to 

U0°F and it certainly felt like 
it) might like to have their own 
little folding fen. 

The Spotted Duck, 115 Ful- 
ham Road, London SW6. has a 
beautifully carved sandalwood 
version which smells exoticaliy 



Make summer a breeze: Viking Direct fun, portable tan (top left) is free If - and here is the catch - you boy £150 worth of office equipment from 
Viking Direct first. The 4ft4ugh free-standing model by Cinni (top right) costs £185, the small table-top Cinni fan (centra rtghfl to £8250 and the 
hand-held sandalwood fen (bottom) to E2J30 from The Spotted Duck, 115 Fuftam Road, London SW3 unBn uo»d 


of spice as you wave it about. 
It costs £2^0. 

Fans mounted on the ceiling 
can be less intrusive and they 
are usually less noisy. The 
Xpelair version, called Whis- 
pair, is probably the most 
sophisticated and it does the 
job of circulating air very welL 
Sizes range from 36in diameter 
to 60 in. with a drop down from 
the ceiling of lOin to 30in. All 
are the same price, £7&52 and 
the essential control switch is 
£18.77. Bemco Is the wholesaler 
and it will be happy to give 
details of local stockists (tel: 
081-874 0404). 

Those hankering for a bit 
Somerset Maugbam-style colo- 
nial romance might look at 
colonial-style ceiling fens with 
brass bodies and rattan blades. 
These cost £99.50 from Christo- 
pher Wray Lighting of 600 
Kings Road, London SW6. 


For serious air cooling, the 
most popular portable domes- 
tic device is the Holiday One 
refrigerated air conditioner 
unit made by Carrier. It nor- 
mally costs £1,135 (currently 
£999 in Selfridge’s sale) and 
will cool a fair-sized room. 

M ost mechanical 
oscillating fans 
operate by mov- 
ing existing air 
around but, for those who have 
been suffering from pollution 
this summer, it is worth know- 
ing that there are ways of 
improving the quality of the 
air itself. 

Valerie Taplin, who runs the 
Air Improvement Centre at 23 
Denbigh Street, London SW1. 
says that the levels of air pollu- 
tion have brought her many 
new customers this summer, 
many looking for cleaner air. 


Her air purifiers sell at 
prices ranging from £50 for the 
smallest to £500, depending 
almost wholly upon size and 
capacity. These are basically 
boxes which are plugged into a 
socket and suck in dirty air at 
the back and expel clean air 
through the front, ionising it 
on the way. Most have two fil- 
ters - a carbon filter which 
takes out gaseous pollution 
(car exhaust, fumes and the 
like) and an electret filter that 
takes out particulate pollution 
(unburned hydrocarbons, soot, 
lead oxide from traffic 
exhaust). The ioniser recharges 

the air and revitalises It, put- 
ting back in the negative ions 
(which Valerie Taplin 
describes as being like "vita- 
mins of the air”) which pol- 
luted city air Is low in. 

These air purifiers do not 
cool the air but make a differ- 


ence to those with breathing 
problems. Valerie TfepUn offers 
an emergency service for those 
in distress - she has delivered 
humidifiers in the middle of 
the night to a tracheotomy 
patient, an opera singer and 
many asthmatics. 

Come the hot weather, 
though, it is inevitable that the 
shops are out of fens - just as 
you can seldom buy a bikini 
when the summer is at Its 
height (“Modem, they were sill 
sold out in January"), or a hay 
fever remedy in the hay fever 
season (“everybody has been 
asking far it." was my local 
chemist’s excuse for being out 
of Beconase). My advice is this 
- never mind if your local high 
street is looking like a frozen 
tundra, buy a good fen if you 
see it and next time the 
weather Is sweltering you wDl 
be smiling. 


Shoes that trod the hippy trail 

Birkenstocks are both fashionable and comfortable, writes Lucia van der Post 

i 



Pregnant and comfortable in brown leather NKtanos (£5435). 


here are some prod- 
ucts which have rele- 
vance and value 
regardless of time 
and fashion. Birkenstock shoes 
are such a product. 

Whether you are three years 
old and not very steady on 
your feet, or 80 and feeling 
frail, Birkenstock will make 
sure you are happily and com- 
fortably shod. In between these 
two extremes, Voguettes rush 
around town waring Birken- 
stocks and the most laid-back, 
comfortable-looking guest at a 


London summer dr inks party 
recently was a chic visitor 
from Florida's Key West sport- 
ing a soft, linen suit, collarless 
linen shirt and . . . yes . . . Bir- 
kenstocks. 

Birkenstocks were the origi- 
nal hippy shoe bought by free- 


loving Woodstock fens, earnest 
ramblers and vegans who 
delighted in the plastic ver- 
sions. Now they have suddenly 
become transformed from 
merely practical footwear into 
cult status. 

In the summer of 1991, The 
Face magazine showed the 
then unknown Kate Moss 
wearing them in photographs 
by Corinne Day and made all 
the style cognoscente take 
notice. 

Hotshot designers began to 
take the basic models and cus- 
tomise them for their catwalk 
shows - Perry Ellis added pink 
satin and diamante buckles 
while Kohji Tatsuno showed 
than in glittery silver. 

Today much of their charm 
lies in their universality - they 
are that elusive product, both 
widely accessible and infinitely 
chic. 

By the footwear standards of 
today they are modestly priced 
ranging from. £1935 to £6955. 

Their fens are legion. Har- 
rison Ford, Whoopi Goldberg, 
Joan Bakeweli, Koo Stark, Vic- 
toria Wood. Julie Walters and 
Maggie Smith all saunter 
around in thpm 

For those who have never 
heard the name, Birkenstock is 
a German shoe company dat- 
ing back to the 18th century. It 
rose to modest fame in the 


1960s when Kart Birkenstock 
combined the arched insoles 
with a footbed and straps, 
creating the now familiar san- 
daL 

This sole (or “footbed") is the 
shoe's chief distinguishing 
characteristic and the source 
of its particular comfort. It is 


made from cork (recyclable, of 
course) and moulds and sup- 
ports the foot. 

Those who are new to Bir- 
kenstocks say it can take a 
while to become accustomed to 
the toe grips and the arch sup- 
port but. once hooked, you 
becomes a life-long wearer. 


In winter Birkenstock afi- 
cionados swap the open sandal 
for the ciosed-1 n shoe styles 
with names such as Boston or 
London. 

There are still ranges for 
vegans, made with no animal 
products, but the model most 
favoured by the chic set Is the 
Arizona, in leather and suede 
at £49.95. This chimes perfectly 
with the 1990s feel for natural 
linens and eco-friendly 
products. 

The Natural Shoe Store, 
which sells them in the UK 
prefers customers to come in 
and be properly fitted but, as 
there are just three branches 
(21 Neal Street, London WC2; 
325 Kings Road, London SW3; 
and 22, Princes Square, Buch- 
anan Street, Glasgow) it recog- 
nises that not everyone can 
easily reach them, so it has 
just launched a mail order cat- 
alogue. 

This catalogue lists all the 
styles, prices and materials 
and includes charts to enable 
you to trace your foot shape 
precisely. 

Do not be worried that at 
first sight the shoe or sandal 
seems alarmingly large - this 
is part of the support system. 
Try them on a soft carpet 
before rejecting them. Ring 
0800-132-194 for a free 
catalogue. 


HACKETT 

LONDON 


Essential British Kit 

Sale 

now on at 

7-15S SLOANE STREET. LONDON SWIX 9AY 
TEL: 071 7.70 3.1 3 l 

X7 JERMYN STREET. LONDON SVC'IY ojD 
TEL: 071 ‘>30 O00 

>5B NE\y KINDS ROAD. LONDON SA 6 ISC. 
TEL: 071 371 7004 

t HOLLSOR.N BARS. LONDON EC IN ILL 
TEL: <*7l K'5 1767 

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TEL: 07 i 6-0 0707 




Fashionable comfort: bright yctow Supor-BMto at £26J)S 






:* :;v 4 , , 




- 






Highland regiments hear the last post 

The Queen s Own Highlanders fear peace-time defeat . Christian Tyler visits the regiment on the eve of amalgamation 


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The power of trmSUon: Coin Fitzgerald, ancestor of the Mackenzies of Seaforth, reacues King Alexander III of Scotland from the fury of a stag hi Was painting by Benjamin West 


The National Gfl*wy of Scotland 


S ilver goblets are carefully 
set in front of each offi- 
cer's place along the pol- 
ished mess-table. But 
closer Inspection shows 
their design is not uniform. The 
first is embossed with a stag's head, 
the next with a thistle and crown - 
and so on, alternately, around the 
table. 

like the clash of green and red 
tartan in the paintings on the walls, 
the goblets proclaim the amalgam- 
ation 33 years ago of two clan regi- 
ments, the Seaforth Highlanders 
and Queen's Own Cameron High- 
landers. 

Today the product of that merger 
stands on the brink of another 
merger. The Queen's Own High- 
landers (Seaforth and Camerons) 
will acquire more goblets, more tar- 
tan, more customs, when they are 
united this September with the Gor- 
don Highlanders from the Gramp- 
ian region to the east, foreigners 
from Aberdeen with strange accents 
and - so it is rumoured - Danish 
blood. 

More than 30 British regiments 
are being reduced or merged in the 
present round of cuts, to predictable 
cries of pain. Same soldiers see in 
this the beginning of the end of a 
regimental system which is reput- 
edly the envy of the world. 

TO the men of the Queen's Own 
Highlanders a stroke of the pen In 
Whitehall feels like a bayonet in the 
guts, for Highland soldiers enjoy 
more than a shared history and reg- 
imental loyalty: they are bound, in 
a way English regiments no longer 
are, by ties of territory, clan and 
family. 

While the rest of the British army 
struggles towards the classless soci- 
ety, theirs remains in some respects 
a feudal world. The officers - some 
still lairds in uniform - are mostly 
the well-spoken products of English 
public schools. As one young bache- 
lor officer quipped when asked 
where he came from: “The High- 
lands of Chelsea.** They command 
men they call "jocks” who in civil- 
ian life could easily be their estate 
workers or gamekeepers. 

Highland regiments enjoy a 
Cachet unlike Other Infantr y units 
There are few sights more stirring 
than a Highland regiment on cere- 
monial parade: a moustachioed pipe 
major at the head, feather bonnets 
nodding, kilts swinging, kettle- 
drums rattling and bagpipes 
wailing. A piece of theatre, maybe, 
but more than that - an expression 
of collective pride powerful enough 
to silence the most sceptical voice. 

That pride was poignantly dis- 
played recently when old soldiers of 
the Seaforth Highlanders commem- 
orated the 200th anniversary of the 
raising of the 7Sth Highlanders 
(Koss-shire Buffs), their regimental 
ancestor, by Francis Hmnbereton 
Mackenzie, Lord Seaforth. 

In untypically brilliant sunshine, 
with the tops of Ben Wyvis uncov- 
ered behind them, they marched in 
column of three behind a pipe band 
of their own veterans through the 
streets of Dingwall on the Cromarty 
Firth. On the same day, at the 
southern end of the Great Glen, 
another band of old soldiers was 
parading through Fort William in 
memory of Alan Cameron of 
Erracht, founder of the 79th Came- 
ron ian Volunteers. 

Poignant, too. was the moment in 
the chapel of Fort George, the lSth 
century garrison which juts into the 


Moray Firth near Inverness, when, 
the regimental chaplain, the Rev 
James Harkness, quoted from 
Isaiah: "Consider the rock from 
which you are hewn, the quarry 
from which you are dug.*' Watched 
by their colonel-in-chief. Prince 
Philip, the two dans combined for 
Beating the Retreat at the Cameron 
Barracks in Inverness, marching off 
to the air of the Mackenzie chiefs, 
Gabor Feidh, while the setting sun 
glared from the red sandstone of the 
barracks. It was spirited but sol- 
emn: a celebration, and a funeral 
march. 

A campaign to prevent the 
merger was launched by old sol- 
diers on both sides, but apparently 
too late to have effect. The "old and 
bold", as the Queen’s Own High- 
landers call their veterans, say the 
merger is unfair an two counts: that 
the QOH has barely digested its last 
amalgamation and that it is being 
penalised for the Gordons* recruit- 
ment difficulties. They hoped - still 
hope - that a big UN peace-keeping 
force will be called for in Bosnia, 
further stretching an already over- 
stretched British army and thus 
saving their battalion. 

There is resentment about those 
regiments which, because of politi- 
cal influence or logistical need, will 


come through diminished but undi- 
luted. The politicians seem more 
worried about the Highlanders of 
Kathmandu, the Gurkhas, than us," 
said Col Andrew Duncan, a former 
commander of the reg imen t "And 
why should there be three battal- 
ions of paratroopers when you can- 
not safely parachute Into battle ever 
again?" 

Sgt John Rattray , a master tailor, 
complained: "We don’t have enough 
people in Parliament There’s quite 


a lot of feeling that the Black Watch 
and ArgyIJs should have been dis- 
banded - they’re no Highlanders." 
The Black Watch, he explained, per- 
secuted the Jacobites in the early 
18th century and were known as 
"the English police”. The Massacre 
of Glencoe has not been forgotten. 

The re giment 's commanding offi- 
cer, and future commander of “The 
Highlanders’* is Lt Col Hugh Monro 
whose brother was CO before him 
and whose father is Sir Hector 
Monro, a minister in the Scottish 
Office. “My principal concern is not 


kilts and customs,” he said briskly, 
“but people.” 

His problem is to maintain 
morale through a reduction of the 
565-strong battalion which will hurt 
the careers of his officers and NCOs 
and threaten unemployment for his 
men. "ff I was a retired officer it 
would be extremely upsetting,” he 
added. T am upset, but I haven't 
got time to be upset Anyway, it 
would need a miracle to prevent it 


Highlan d soldiers regard them- 
selves as special. Their martial tra- 
dition is one reason. They make 
tough infantrymen, said Col Dun- 
can, a legacy of the era when they 
were required “only to walk bravely 
forward, shoot their muskets, and 
die when hit.” Yet they do not fos- 
ter a cult of toughness like the 
self-proclaimed elite units. 

They are violent when roused, 
boisterous when drunk and need a 
lot of disciplining. They are used to 
military service: regiments like the 
Seafortbs and Camerons were 


raised by their clan chiefs as much 
as anything to provide employment 
And they are used to dying. The 
entire adult male population of 
Ullapool, the fishing port in the 
north-west Highlands, was killed in 
the two world wars, according to 
Major-General John Hopkinson, 
another former Seaforth and now 
Colonel of the Regiment 
"The jocks are fine soldiers, but a 
nightmare in camp”, said Major 
Douglas Hay of *D’ company, glow- 


ing with pride after watching his 
men win the battalion soccer tour- 
nament in a cup final played at 
high speed and with considerable 
ferocity. “Everyone in the army 
says his battalion's the best The 
only difference is that in the 
Queen's Own Highlanders we know 
we ore the best!”. 

Overt class distinction seems to 
bother no-one in the battalion. 
“Jocks expect officers to be differ- 
ent, ” said a lance-corporal. In spite 
of it - no, because of it - officers 
men alike boast of the familiar . 


ity permitted. A sergeant explained 
that the relationship is less 
stiff-necked than elsewhere in the 
army. Banter was tolerated short of 
insubordination and jocks knew 
where the line was drawn. There is 
one dub for the wives of all ranks. 

“Our sam'ts (sergeants') mess is 
the oldest in the army. They are all 
real gentlemen.” said Monro. “Class 
is not important in this mess either, 
it’s performance.” These days, he 
said, respect had to be earned. 
“There is no room any longer for 
the chap who can hide behind a 
name or what he thinks he is.” 

Family connections and family 
feeling are the glue that binds these 
soldiers together. Many have fol- 
lowed brothers, fathers, grandfa- 
thers into the regiment “It’s all to 
do with family," said an NCO store- 
man from Fort William. In one com- 
pany there had been no fewer than 
six brothers serving together. 

Major Mike Wlmberley, the sec- 
ond in command, was bora in Lon- 
don and grew up in Sussex, But he 
has a Cameron tartan plaid spread 
over his desk: he is the fifth genera- 
tion to join the regiment For him, 
it is an extension of family life. 
The hardest thing to face," he said, 
“is that someone wants to do away 
with us, that someone can do away 


with the Gordons 

with the living thing that is a regi- 
ment - that something created 
which works extremely well that 
can just he wiped out at the drop of 
a pen. History doesn’t count with 
government. It doesn’t matter a 
damn to them how long we have 
been around. What matters is their 
ability to recruit and retain.” 

The last sen-fog Seaforth in the 
QOH is the quartermaster. Major 
Murdo Macleod from the Isle of 
Lewis. He la old enough to remem- 
ber babysitting a little girl now 
married, to one of the sergeants. 
“When you leave a civilian com- 
pany,” he said, “that’s the end. But 
you are never, ever, retired from 
the Queen's Own Highlanders.” 

The last merger was made easier 
to digest by a posting to Singapore 
and action In Brunei. Few doubt 
that the impending merger with the 
Gordons can be made to work just 
as well, in spite of mutte rings that 
their officers are not of the same 
calibre and jokes about their tartan 
having a yellow streak. 

Arguments about who wlU wear 
what, and when, in the new battal- 
ion have largely been resolved. Gen- 
eral Sir Peter Graham, colonel of 
the Gordons, was rumoured to have 
threatened to fall on his sword if 
the Cordons lost the kilt. So it will 
be Gordon kilts and Mackenzie 
trews for the soldiers, and Cameron 
kilts and Mackenzie trews for the 
pipers and drummers. In return the 
Gordons will give up their cap 
badge - the everyday emblem of the 
modern soldier - of stag's head and 
motto "Bydand” (“abiding") for the 
QOH stag’s head with thistle and 
crown and Gaelic motto “Cuidich'n 
High" (Help the King). 

Thus traditions will fuse and a 
new sustaining myth will have to 
be invented. “We will have no trou- 
ble creating a history for the High- 
landers,” said a QQH officer. “But it 
has taken 20 years to get our iden- 
tity accepted locally. It will take 
another 30 years for the new one.” 

But for how long can the regimen- 
tal system survive such chopping 
and dilution? Field-Marshal Lord 
Carver argued 25 years ago that 
infantry regiments should be 
merged into a single corps. He has 
few supporters in the QOH. Tt Is 
important to go into battle with 
friends, not acquaintances - to see 
the blue hackle.” said Capt Stuart 
Tootal, who saw action in the Gulf 
war where three men of the battal- 
ion were killed in the notorious 
“friendly fire” incident. “At the end 
of the day one of the biggest moti- 
vations is not to let your mates 
down, and 1 firmly believe in that.” 

Major Wimberiey said: “We have 
asked them if necessary to lay down 
their lives for the Queen's Own 
Highlanders. You cannot easily ask 
them to switch off and say Now I 
am a ‘Highlander’.” 

But there are some who feel the 
campaign against amalgamation is 
a case of old buffers resisting the 
Inevitable. They say the tradition of 
local regiments, formalised only 100 
years ago. is wasteful in peacetime 
and inefficient in wartime, however 
good It may be for esprit de carps. 
With many regiments, like the 
QOH, down to a single battalion the 
rationale is still further weakened. 

“Why not put all the Highland 
battalions into one regiment?" 
suggested a QOH dissenter. “You 
could say they should have gone 
even further." No doubt they 
wanted to, bid did not dare. 


now.' 


‘The hardest thing to face is that someone wants to do away with 
us . . . that the regiment can just be wiped out at the drop of a pen 











T he lure of the stove 
fades fast in hot 
weather. Good eat- 
ing still appeals - 
providing the 
dishes are light and fresh, not 
stodgy or creamy - but the less 
cooking involved the better. 
This Is a time when good shop- 
ping comes to the fore and 
classy offerings from the deli- 
catessen seem worth their 
weight In gold. 

As good fortune would have 
it. the hot spell in southern 
England has coincided with 
the arrival in the UK of some 
fine foods from Italy. 

Masseria is a small estate in 
Apulia, the heel of Italy. Its 
artisanal products are strictly 
seasonal and quantities are v 
limited. Own-grown vegetables 
ripened in the southern sun ' 
are a speciality. Harvested 1 in 
small batches when atttheir 
peak, they are cooked and ‘pre- 
served within hours, ani this 
freshness is evident in the Oat\ 
ing. 

Unusual offerings include a' 
vibrant green pasta sauce, 
made from the cooked and pur- 
fed tips of a sort of wild broc- 
coli, time di rapa. Even more 
noteworthy is a range of anti- 
pasti vegetables preserved in 
olive off. 

Of these the grilled wedges 
of artichoke are truly outstand- 
ing: the firm sweet texture of 
the fresh vegetable is retained 
and the delicate artichoke fla- 
vour shines through. 

They are quite unlike most 
other preserved artichokes, 
which tend to be soft verging 
on soggy and mildly sozzled 
with an overdose of vinegar. 

These Masseria artichokes 
are in their mime now. having 
been picked, grilled and bottled 
Just recently. As the months go 
by they wfll soften a little. But 
supplies of this year's crop will 
be snapped up and eaten tong 
before that happens. 

Any day now Masseria gril- 


Cookery /Philippa Davenport 

Feasts from 
the deli 


led baby onions will come on 
stream. By September sun- 
dried red peppers will be har- 
vested, bottled and ready for 
sale, as will lampasconi (deli- 
cately flavoured hyacinth-like 
wild bulbs). Treats to look for- 
ward to. 

September will also see the 
arrival in Britain of the new 
-'season’s peperoni farciti. an 
exquisite offering from Roi of 
Liguria. Ttujse stuffed peppers, 
which l sampled at last year's 
harvest, eye tiny round medi- 
um-hot peppers, each carefully 
■ stuffed with whole anchovy fil- 
lets and capers, packed in Boi’s 
delicate extra virgin olive 
oiL 

Like Masseria’s grilled arti- 
chokes, Roi’s stuffed peppers 
are a star product to which I 
could easily become addicted. 
Try either or both of them with 
a few slices of good ham. a 
hard-boiled egg or two and a 
smattering of fresh chopped 
herbs. Perfect for lunch in the 
garden. 

Sardinia is uncharted gastro- 
nomic territory so far as most 
Britons are concerned. But not 
far tong, as some of the best of 
the island’s produce is just 
beginning to trickle into the 
British marketplace. 

San Giuliano. near Alghero. 
northern Sardinia, produces a 
commendable selection of vege- 
table antipasti preserved in 
olive oil, that includes wild 
cardoons, antunna mushrooms 
(a member of the oyster mush- 
room family Indigenous to Sar- 



dinia), and sun-dried tomatoes 
stuffed with anchovies, herbs 
and spices. 

There Is also a San Giuliano 
extra virgin olive oil which, at 
less than £6 per litre, strikes 
me as a very agreeable, very 
affordable everyday olive oil; 
while from Sartos and San Ral- 
mondo in middle and southern 
Sardinia respectively come 
prize-winning fruttato olive 
oils. 

Cnsar's canned vegetables, 
from the Cagliari region in the 
south, include excellent pulses: 
canned lentils, borlotti and, 
best of alL large mealy white 
beans known as fagioli di 
spayna. The canned plum 
tomato products are the best I 
have come across. 

The Sardinians, tike the Brit- 
ish, are notably sweet-toothed. 
Some or their biscuits and 
sweetmeats are Arab influ- 
enced. High fruit content jams 
include a fine bilberry. 
Intensely flavoured hazels. 



almonds, walnuts a nd sultanas 
stored In honey are especially 
delicious. This is an ancient 
preservation method almost 
forgotten elsewhere. 

Long-keeping foods are a 
hallmar k of Sardinian cuisine. 
Traditional island breads 
include pane carasau. colloqui- 
ally known as carta di musica, 
or music paper. Crackling, 
parchment-thin, it will keep for 
up to a year after baking. 

Even longer lasting is 
botarga, the salted and dried 
roe of mullet or blue fin tuna. 
This fishy treat is Sardinia's 
greatest delicacy and is so 
intensely savoury that only 
minute quantities are needed 
to kick-start the appetite. Just 
as well, for it is a luxury item 
in the caviar and truffle price 
bracket, food for high days and 
holidays. 

One classic (and effortless) 
way to serve botarga is shaved 
wafer thin or grated to a pow- 
der. sprinkled over a generous 
handful of rocket or broken 
pieces of carta di musica driz- 
zled with olive oiL (The poor 
man's version substitutes sea 
salt for botarga.) 

This is a splendid dish for 
reviving jaded appetites on 
s umm er days, when I might 
preface it with a thirst-quench- 
ing soup, well chilled and 
agreeably thin - made perhaps 
with Sardinian canned toma- 
toes, sieved to a purfie, gener- 
ously diluted with light stock 
or iced water, enriched with a 
splash of olive oil and aroma- 
U sed with crushed fennel seeds 
and a sliver of garlic. 

■ For further information 
about and stockists of products 
by Masseria and Roi, contact 
Danmar International. Tel: 
0S1S44 1494. Fax 081-751 143 8. 

■ For further information 
about, and stockists of. Sardin- 
ian foods and urines contact 
EuroChoice. Tel and fax: 
081-653 9422. 


Whisky /Giles MacDonogh 

Glenturret’ s variety 


O n the Scottish main- 
land few whisky 
distilleries are good 
to look at. The need 
to increase capacity during the 
boom years in the 1960s and 
1970s transformed most of the 
primitive industrial sites into 
complexes of buildings looking 
more like factories. 

The pagoda roofs on the 
mailings were levelled when 
the decision was made to bring 
in malt from elsewhere. In 
other cases, old warehouses 
were cleared when companies 
elected to age their stocks cen- 
trally, rather than at the dis- 
tillery itself. 

If yon do not want to take 
my word for ft, go to the Glen- 
llvet yon will soon see that 
the best view is from the 
inside, looking out. 

Yet there are a few notable 
exceptions. One of these is 
Strathisla in Keith. Then there 
are the two smallest distill- 
eries in the Highlands, in 
many ways two working muse- 
ums: Edradonr, in Pitlochry, 
and Glenturret, just outside 
Crieff. 

Glenturret lays some claim 
to being the oldest distillery in 
Scotland. The River Turret 
was particularly favoured by 
illicit distillers in the 18th cen- 
tury and it is believed that 
whisky was being made on the 
site of the present buildings as 
early as 1717. 

The shell or the distillery 
dates back to 1775. half a cen- 
tury before the relaxation of 
the duties on distilled spirits 
which created so many of the 
larger operations on the main- 
land. 

Glenturret continued to pro- 


duce whisky until the 1920s. 
In 1927 the stills fell silent and 
remained so for 30 years. Dar- 
ing this time the distillery was 
stripped of its equipment 
Then, in 1957, the buildings 
were acquired by a Glasgow 
whisky broker called James 
Fairlie. 

Falrlie was bored by bis 
work, and was looking for a 
more interesting line of busi- 
ness. He did not have a lot of 
money but be managed to get 
the place up and running by 
signing a number of hire-pur- 
chase deals. In that way he 


was able to acquire a function- 
ing Porteous grist mill and a 
couple of secondhand stills. 

Fairlie kept Glenturret 
going until 1981 by selling his 
whisky to Mg companies for 
use in blended whisky. In that 
year Cointreau bought him 
out 

Ten years later, Glenturret 
reverted to Scottish ownership 
when Cointreau's masters, 
Remy-Marttn, did a share deal 
with the Highland Group. 
James Fairlie stayed on until 
1990. Since then his son, Peter, 
has been in charge. 

Glenturret still fills casks 
for other companies, but its 
strong point is bow much it 
uses its own resources to good 
effect 

Its Highland position, just 
below the Turret Loch, 
attracts around 200,000 tour- 
ists every year. For a small fee 


they are able to pop into the 
distillery and watch whisky 
production fn miniature. 

The mash tun, for example, 
is so small there that it is 
stirred manually by a man 
with a paddle. The wash still, 
the most important of the two 
stills so for as quality is con- 
cerned, was replaced by a 
rather more sophisticated 
machine In the mid-1970s, but 
the old spirit still continues to 
be used. 

Outside in the yard lie the 
casks in which the whisky 
spends its long years of matu- 


ration. Most of them are Amer- 
ican wood ‘hoggies’, con- 
structed in Scotland from 
Imported barrel staves. Old 
sherry butts from Spain are 
also in evidence. 

Scotland's smallest distill- 
ery, Edradonr, poors all its 
production Into one malt. 
Glenturret takes another path 
altogether. It bottles seven or 
eight different whiskies as 
well as a painfully sweet 
liqnenr. 

Glenturret is a heavy 
whisky and this is already 
noticeable on the basic eight; 
year-old with its honey and 
batter aromas. Outside the dis- 
tillery it is the 12-year-old 
which one sees on sale most 
often. This is a mite peatier 
with a certain smokiness on 
the nose. 

My favourite of the younger 
whiskies is the 15-year-old, 


For a small fee , tourists may watch 
whisky production in miniature 


with hints of honeycomb and 
preserved fruits. This also 
comes in a high-strength ver- 
sion - 50 per cent alcohol by 
volume - with fruity, heathery 
notes. 


Then come a series of weird 
bottlings. A ‘copperlustre 
flagon' revealed a 21-year-old 
whisky smelling of varnish. 
The varnish aroma was proba- 
bly caused by sherry, bat it 
was far from being my' favour- 
ite in the range. Another 21- 
year -old came in an expensive- 
lookiog cat-glass decanter. 
Again, this had matured in 
sherry wood. A third 21-year- 
old had been bottled at 43 per 
cent This was a better bal- 
anced whisky with some 
attractive floral notes. 


uiun vnuaMCb uuui me gomeii 

age: the 1980s. This was the 
time when the whisky busi- 
ness was getting the best casks 
- before demand outstripped 
the supply of decent wood. The 
25-year-old at 43 per cent was 
clearly from a bourbon cawfc. it 
smelled of sugar and butter 
being creamed together. A 
1968 (27 years in cask) at 45.7 
per cent was fruitier with a 
slight touch of that enchanting 
apricot and ginger character 
which is called ronefo in 
Cognac. The 1868 Classic Vin- 
tage at 40 per cent had even 
more rarutia character. 

■ Information: Glenturret is 
open to the public all year 
round but opening times are 
restricted in January and Ret. 
rutny. Tel: 0764-956S6S. Then is 
a bar and two restaurants on 
^lF,^SL Sp(xU ^ Scottish 



x WEEECHND FT 


FINANCIAL TIMES WEEK. END JULY JlVJULY 31 1994 


TRAVEL 


Practical Traveller 


Keep on the right 
tracks in Europe 


N ot long ago 1 took a 
train trip from the 
bottom end of 
Europe to the top. 
from Marseilles to Helsinki, 
writes Nicholas Woodsworth. I 
did it because I bad time - the 
journey, with a 12-hour stop in 
Copenhagen, required four dif- 
ferent trains, two ferries, and 
took 63 hours. 

1 also did it because it was 
cheaper than flying: less than 
half the price. But most of all I 
did it because I enjoy trains. 

There is perhaps not as 
much romance in European 
train travel as there was 50 
years ago. But it still has its 
pleasures. Apart from some 
horrendous delays, atrociously 
cramped seating and one or 
two dodgy landings, I cannot 
say I have any clear and last- 
ing memories of airports or 
flights I have taken; such 
things are anonymous and 
without character. 

Yet I clearly remember train 
trips from years ago. If you 
want a physical sense of 
Europe, a feeling for changes 
in its climate mid countryside 
and cities, if you enjoy chance 
encounters irith its inhabit- 
ants. then trains are the best 
way to see the continent 
Old tales of Italian peasants 
exuding garlic in stuffy com- 
partments during interminable 
journeys are no longer worth 
telling. Rail commuters in 
Britain may have continuing 
grounds for complaint, but 
European mainland rail travel 
is now seen as the transport of 
the future - services and net- 
works on the whole are com- 
fortable, reliable and fast. 

The French TGV - train de 
grande vitesse - that I took 
between Marseilles and Paris, 
for example, takes just a little 
over four hours, and from city 
centre to city centre rivals fly- 
ing for rapidity. 

While most of the hardware 
on the continental rail network 
is impressive, I found the soft- 
ware - the vital information 
necessary to a complex net- 
work - less satisfactory. 

It may vary from country to 
country, but railway employ- 
ees throughout the continent 


seem to regard the provision of 
travel information as a special 
favour. In Marseilles the man 
behind the counter was too hot 
and bothered to look into an 
alternative to the Inconvenient 
renting he first suggested. 

Even in Copenhagen station, 
that model of Nordic efficiency, 
1 was sold a ticket for a service 
that did not exist at the time 
promised. On the German train 
to Denmark. 1 saw an elderly 
American couple come close to 
nervous collapse because their 
carriage attendant had frilled 
to tell them that the train split 
at Aachen. They emerged from 
a dining car in the wrong half 
to find their carriage, with all 
their documents and belong- 
ings, beading in the other 
direction. 

The essential act, then, 
before boarding a train or buy- 
ing a ticket is to check and 
recheck. Euro City, Euro 
Night, Inter City Express, Inter 
Region - there are scores of 
different types of trains. 

Do not worry about making 
a nuisance of yourself; ask 
about the most convenient 
departure times, connections 
and routings. Language prob- 
lems. guaranteed in many 
smaller or rural stations on the 
continent, can only make mat- 
ters more difficult. But a bit of 
polite perseverance can make 
all the difference. 

Perhaps the best place to 
begin is the International Rail 
Centre in London's Victoria 
Station (tel: 071-834 2345). For 
those planning a set itinerary 
in Europe, or wanting to avoid 
on-the-spot language problems, 
Thomas Cook publishes a 
European timetable, updated 
monthly, available at book- 
shops or by phoning 0733- 
268943. The same company also 
publishes On the Rads Around 
Europe (£9.95), a rail-travel 
guide separately detailing 
more than 40 different routes. 

It is worth finding out, too, 
about discounts on standard 
tickets, and, for those making 
extended tours, rail passes: 
these can offer real savings. 

Discounts are available for 
senior citizens, students and 
children, and often for travel 


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outside peak and weekend 
travel periods. 

There is a great range of rail 
passes such as the Eurall 
available only to those living 
outside Europe, which offers 
anything from 15 days of first- 
class travel for 5498 (£321) to 
three months for $1398. 

For Europeans a variety of 
passes exists, none of which 
offers the same comprehensive- 
ness. For those under 26, the 
Inter-rail pass offers unlimited 
second-class rail travel 
through most countries in 
Europe for £249 a month. 

The Inter-rail 26+ pass, at 
£269 a month, offers unlimited 
travel to those of any age, but 
is not valid for Iberia, Belgium, 
France, Italy or Switzerland. 
However, most European coun- 
tries, including those just men- 
tioned. provide savings on 
their own national railways 
with the awkwardly-called 
Euro-Domino Freedom passes. 

If you are contemplating a 
longer trip across Europe, 
chances are you will find your- 
self on an over-night train. The 
charms of falling asleep to the 
sound of turning wheels has 
been exaggerated. 

After three nights of station 
shunting, customs checks and 
snoring passengers. 1 rolled I 
into Helsinki feeling not 
entirely rested. Make sure you 
take ear-plugs. 

You are more likely to get a 
better sleep in a proper sleep- 
ing car than in couchettes, 
which are much cheaper and 
provide four to six berths for 
mixed sexes in a converted 
day-time compartment. Pillows 
and sleeping-bag-style sheets 
are sometimes made of dispos- 
able material, and I found the 
bunks short and narrow. 

Far more comfortable are 
single-sex sleeping compart- 
ments, with a maximum of 
three berths and the possibil- 
ity, in some first-class compart- 
ments. of individual accommo- 
dation. You get a proper bed 
and, if you like, the attentions 
of a steward. While most over- 
night trains offer dining-car 
services, he will bring you 
drinks in the evening and 
breakfast in the morning. 



*✓ 



The Lofoten Islands: fly, take a ship or, if you can stand K, drive. One way or another, the coasts around the islands are worth any kind of effort 


BlCNmnkr 


Cote d’Azur of the Arctic 

Nicholas Woodsworth drives through dull Lapland to the dazzling Lofoten Islands 

H ome of rivers, lakes fascinating things out there, of mosquitoes, engaged in Snaking between hills now. the In Sortland I spent a ; 

and virgin forests, Lapp folk music contests and some sort of field drill; an elec- road rose higher and higher. In less and sun-filled night 

home of the hardy endless boggy back-packing tronic pool game in a Swedish an hour I was above the tree- hotel roam where the cm 

Lapp and vast trails are highly considered small-town take-away, intoning line; in another 1 was lost in a failed to keep out the 1 


H ome of rivers, lakes 
and virgin forests, 
home of the hardy 
Lapp and vast 
herds of reindeer, Lapland. I 
have to admit, sounds like an 
interesting place. Do not 
believe a word. The attractions 
of Lapland are for the most 
part as Imaginary as its most 
famous resident. Santa Claus, 
who each year leaves the Finn- 
ish postal service holding 
500.000 letters addressed to 
him 

I had spent two long summer 
days driving across arctic 
Scandinavia and was ready to 
scream with boredom. There 
may well have been all sorts of 


fascinating things out there. 
Lapp folk music contests and 
endless boggy back-packing 
trails are highly considered 
locally. Whatever their quali- 
ties. they were hidden in driz- 
zle behind the thick curtain of 
trees that, mile after mile, hour 
after hour, hemmed In both 
sides of the highway. 

It was not long before I 
began accepting any little 
diversion with gratitude: small 
villages lost in the forest, their 
wooden houses sodden in the 
rain, their pale-faced women- 
folk grimly planting potatoes 
in muddy plots; a contingent of 
the Furnish army, camouflaged 
in spruce branches and clouds 


of mosquitoes, engaged in 
some sort of field drill; an elec- 
tronic pool game in a Swedish 
small town take-away, intoning 
"Stop talkin' and start 
chalkin'" in a Clint Eastwood 
voice. 

So endless, unchanging and 
empty were the forests of the 
north that, listening to Maria 
Callas and dreaming of the 
Mediterranean. I missed a turn 
and drove 100km to a dead end 
before I realised my mistake. 

Great was my wonder and 
anticipation when, not far from 
the Norwegian border at the 
end of the second day, I 
noticed the land beginning to 
lift and the forest to thin out 


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Snaking between hills now. the 
road rose higher and higher. In 
an hour I was above the tree- 
line; in another 1 was lost in a 
chilly snow-covered desert of 
tall mountains. 

Then, without warning. 1 
was over a high pass and the 
road fell precipitously to 
warmth and greenery. ! took a 
deep breath of surprise. Spread 
out in a jigsaw puzzle below 
me were the spectacular 
islands, sea and fiords of the 
Norwegian far north. 

Fly, take ship or, If you can 
stand it, drive. One way or 
another, the coasts around the 
Lofoten Islands are worth any 
kind of effort. WhoEy surprised 
by their beauty, I realised 
where generations of European 
holiday-makers may have gone 
wrong. Instead of working In 
grey northern dries and mass- 
ing each summer on hot. 
smelly beaches to the south, 
we should do the opposite - 
Eve and work hi the south and 
travel to the cool, green north 
for holidays. The Lofotens are 
the Cdte d'Azur of the Arctic. 

Looking about as 1 motored 
down towards the water, it was 
not hard to understand their 
attraction. People love moun- 
tains and people love the sea, 
but rarely do they get them 
together, or in such generous 
proportions. Wherever I gazed 
were steep peaks, their sum- 
mits snowy and ragged- 
toothed, their bases plunging 
into the deep indentations of 
the arctic sea. 

Nor was this any ordinary 
arctic sea. Other places in the 
world at the same high latitude 
- northern Alaska, Baffin 
Island, upper Siberia - are vir- 
tually unlivable. But here, 
dwarfed by this huge and 
untamed background, were 
snug seaside villages, neat 
homes and barns and boat- 
houses painted bright red and 
surrounded by green fields and 
flower gardens. 

The Lofotens are as full of 
life as Lapland Is barren. When 
the rest of Scandinavia is shiv- 
ering in sub-zero winter, there 
are parts o I the Lofoten Islands 
that remain above freezing 
point. It is all due to that 
gigantic but invisible natural 
heat source, the Gulf Stream. 

On this particular day, 
though, not even the Gulf 
Stream was having an effect on 
the gale blowing In from the 
open ocean. It spanked up 
white-caps on the milky-blue 
fiords, lay dandelions flat 
against the ground and tugged 
at the cod-fish hanging by their 
thousands from wooden racks 
□ear the shore. 

Clouds rolled in and out the 
sun advanced and fled. In the 
distance shifting fields of light 
played on sea and mountain 
snow. It made for a splendidly 
savage, wind-whipped day. 

Five of the seven Islands that 
make up the twisted string of 
the Lofoten group are con- 
nected by bridge, tunnel or 
short ferry ride. Ahead of me 
lay 400km of superb scenery. I 
took my time; In the arctic 
summer, when the sun never 
sets, there is plenty of time. 

In the town of Svolvaer I 
bought an island guide at a 
bookshop and asked the atten- 
dant what people did through 
the long dark months of winter 
when the sun never rises. 
There are not that many possi- 
bilities, it seems, “Shovel 
snow, drink beer, watch foot- 
ball and make babies," she 
replied without a moment's 
reflection. 


B arrel-chested Sivert- 
sen went to sea when 
he was 14 and has 
been fishing ever 
since. Arctic fishing, most of 
which takes place in the win- 
ter, is a gruelling, merciless 
profession and today, at 57, 
Sivertsen has slowed a little. In 
his 32ft boat, the Nyboen, be 
used to catch 40 tonnes of cod 
a year and more. Today, with a 
cod quota in force, he is only 
allowed to take 17 tonnes, and 
spends fewer weeks at sea He 
fills in file extra time looking 
after guests in his rorbu and 
talcing th e m out sports fishing. 

Rorbu are found in almost all 
seaside Lofoten villages. Small 
wooden huts built on piles over 
the water, they are used by 
fishermen in winter. In sum- 
mer they are let out to tourists, 
and make some of the most 
comfortable and picturesque 
accommodation on the islands. 
I stayed a couple of days in one 
of Sivertsen's snug self-cater- 
ing rorbu In the village of 
Reine, and found myself not 
wanting to leave. 

Outside, against the back- 
drop of the black mountain 
that hangs over the village, 
water lapped against the rocks, 
gulls cried and boats came and 
went. Inside, I sat in my little 
kitchen trying to figure out a 
way to cook a 61b cod. 

When we set off in the 
Nyboen that morning. Si vert- 
son had told me that fish wore 
not as numerous as they used 
to be. I had difficulty imagin- 
ing how it used to be. for we 
had no sooner put a line over 
the side and begun jigging it 
up and down than we had a 
cod, 

I fried it in batter, and for 
the first time in my life found 
out how fish and chips should 
taste. I began thinking of ways 
to get fresh cod off the Lofoten 
Islands, out of Scandinavia and 
down to the little chippy at the 
end of my street in London. 

■ Information on the UtfOten 
Islands cm be had by contact- 
ing the Lofoten Tourist Board. 
Svoloaer, Norway, tel : 7-60- 
73000, fax; 7-60-73001. Rorbu 
oorammodation can be difficult 
in high summer and should be 
booked beforehand. Sioett Siv- 
ertsmtan be contacted in Reine 
on 7-609223$, \ 




pon ; itt:i 


In Sortland I spent a sleep- 
less and sun-filled night in a 
hotel roam where the curtains 
failed to keep out the light. 
Confusion continued when I 
came down to a vast Norwe- 
gian breakfast that was more 
like dinner: cheeses, meats, 
sliced vegetables and more 
kinds of herring - in brine, in 
vinegar or with cuny or spicy 
tomato sauce - than I knew 
existed. 

In the village of Eggum on 
the “outside” - the term 
islanders use for the rough 
unprotected waters of the open 
ocean - I spent an afternoon 
strolling the pebble beach to 
the sound of great arctic comb- 
ers rolling in. In Nusfiord on 
the “inside," by the calm 
waters of West Fiord, I 
watched fishermen taking cod 
down from the drying racks; 
they may look like inedible 
slabs of timber but, rehy- 
drated, they end up on the 
plates of southern Europeans 
who judge them a delicacy. 

The farther out I went on the 
islands, the taller became the 
mountains, the wilder the land- 
scape. Finally, on Moskenes, I 
stopped at the fishing huts of 
Sivert Sivertsen- 


Ilondon 1 


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F ,■ 

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Charm amid the Algarve frenzy 

W e lingered at the cuiiy hair and swarthy sMn. It was cliffs. There were about a dozen carrier bags. No-one was interested, stuck, out from the cliff-tops t 
saoe stall for a not difficult to imag i n e in them the fishing-boats beached on the sand, though, in the two squid that lay in bizarre gnptrer at their feet va 
jnoment too long, blood of the Moors who once domi- During the day, the fisher men thg bottom of the boat, puffing flab- spiky plants with curling bladi 
You, my Mend, nated the region, and gave the mended and baited their nets. At bfly, slowly dying without water, shap ed leaves, standing sentry. 

What Size? What Alsarve its name fthrir form at nioW tW nmt n,rf hrfn W Whan »Va Am. Hi. iimd 


1 * V ' 
1> 




W e lingered at the 
shoe stall for a 
moment too long. 
“You, my Mend. 
What size? What 
size your barked a burly woman as 
she marched up to us. She gripped 
my wife’s arm tightly. “3,500 escu- 
dos... 3,000... 2^500," the woman, 
growled, 'thinking our attempts to 
walk away were merely a ploy. 

“Good . shoe. This very good 
leather", she said through her 
moustache, and bent a moccasin 
h«t* and forth in powerful hanriq 
Hear stand was the nearest in the 
road at the edge of the gypsy mar- 
ket, rated in a. field just outside 
Albnfeira, on Portugal's Algarve 
coast We later saw the woman and 
a node accomplice selling loafers to 
an elderly, gangling American, 
whom they hauled in and out of a 
chair Eke a poppet while he tried 
the shoes on. 

In all, there were around 100 
stalls at the market, offering shoes, 
shirts, pottery, rabbits, leather 
bags, underwear, salted codfish, 
dried beans and three-piece suites. 
There was plenty erf flotsam and 
jetsam: Portuguese-made shoes, 
blouses, rugs from India, and towels ' 
decorated -with the Manchester 
United crest 

Most of the traders had dark 


curly hair and swarthy nMn. It was 
not difficult to imagine in th«»m the 
blood of the MOors who once domi-' 
nated the region, and gave the 
Algarve its name (their term al 
gharb meanin g the western land). 

Behind the gypsies’ vans, women 
washed clothes, and cooked food on 
primus stoves. Chfidren'ran. around. 
Scrawny dogs, chained to the vans, 
lay quiet in the dust 

We found three stalls run by 
expatriate British. There was a cou- 
ple selling T-shirts from a red van, a 
woman selling miniature paintings, 
and a man making jewellery from 
odd coins. In the end we bought 
some ceramics, a bag erf monkey- 
nuts, and two T-shirts from the 
British couple - but no rimes. Until 
a few years ago, ABrafeira was a 
fishing village. Now it is a growing 
town. Shops, bars, supermarkets, 
hotels and "aparthotels" are 
stacked on top of each other, scram- 
bling up the hiD away from the sea. 

In spite of this frenzy of develop- 
ment, the narrow lanes in the town 
centre retain their charm. Small ter- - 
races of white- waDed cottages sud- 
denly open out to a magnificent 
view of the Atlantic. The am^n of. 
wood-smoke mingles with the warm 


You get to the beach via a tunnel 
which has been cut through the 


cliffs. There were about a dozen 
fishing-boats beached cm the sand. 
Daring the day, the fishermen 
mended and baited their nets. At 
wight they went out jwh> t he bay, 
their lights twinkling on the hori- 
zon under the bright stars. • 

One morning we went down to 
the harbour to watch the boats 
return. The m en piloted their craft 
through t h f? s urf and j |p*n tjii> 
at the sea’s edge. A tractor hauled 

In spite of British 
incursions , Albufeira 
retains its character , 
says Stephen Court 

the boats up the shore. 

A few locals, along with a knot of 
tourists and stray dogs, gathered 
around a boat that had came to rest 
on the beach. Two fishermen, 
stocky and stubby-fingered, with 
haryfa god fy ** ? Kk» dark leather, 
squatted in the hull, sorting 
through their catch. They took sale 
and sea br eam up to the fish mar- 
ket; leaving the onlookers to take 
their pki of the rest 
Eels and sardines - stall wriggling 
ami twitching - were stuffed into 


carrier bags. No-one was interested, 
though, in the two squid that lay in 
the bottom of the boat, puffing flab- 
bily, slowly dying without water. 
When the fishermen returned, 
who had helped themselves to the 
catch paid up. The small crowd 
then drifted across the sand to 
another crew that had just come 
ashore. 

At Albufeira, the distance fish, 
travel from the net to the table is 
short There is a restaurant right 
above the fish market, and the 
attractive; compact quayside is 
crammed with outdoor tables. 

The l o ng, sandy.' beaches of 
Algarve are excellent for a day’s 
walking: One morning we set off to 
walk along the coastal footpath 
from Albufeira east, towards Vfla- 
nwursu The air was fresh, and the 
slight chill was slowly gi ring way 
to spring warmth. Once we had left 
the main beach at Albufeira there 
were very few people around. We 
walked barefoot through the surf. 

From the beach, the sharp out- 
lines of white-washed walls dazzled 
against the deep blue sky. Crumb- 
ling ochre cliffs rose from the long 
stretches of sand. The cliffs were 
thickly covered with a succulent 
plant with, fleshy, wedge-like leaves. 
Its flowers, shaped like sea anemo- 
nes, slowly opened to the sun. Trees 


stuck out from the cliff-tops at 
bizarre angles; at their feet were 
spiky plants with curling blade- 
shaped leaves, standing sentry. 

Everywhere, tire sea was eating 
into the coastline, turning it into a 
honeycomb of crumbling caves and 
overhanging ledges. Along the 
beach there were large and newly 
airbed-looking: boulders. Where the 
beach became impassable, the path 
went up over the pHfffr 

We came across three men In 
waders dredging for shellfish. They 
were slowly dragging box-shaped 
nets through the sand. The waves 
washed away the sand, leaving the 
shellfish at tire bottom of the net. It 
looked hot, grinding work. By the 
of the day, each had har- 
vested less than a bucketful. 

The furthest point east on our 
walk was the village of Olbos d’A- 
gua. its awsjdp stalls w we opening 
for the summer season. There was 
also a bar, run by British expatri- 
ates, offering pale ale and strawber- 
ries with cream. 

We sat at a shaded table outside, 
and ordered sardines with salad. We 
should have known better. When 
the sardines arrived, they bad not 
been grilled in the local style. They 
were done in. batter, and served 
with sliced white bread. The only 
tiring missing was the chips. 


•~ r u^cy r» 

r-V»iEr ? 




tfW-- 


Ahi M r a the dM am fish trawl from net to tabto Is abort 


the Arctii 



2 rest 

| |UMD RELAX 


" I DONT BELIEVE IT!!! " 

An unbddevfdrie August offer 
Set in 66 acres afgrounds overlooking the River Thames, 
Danesfietd Htxise » oce of Britain's leading Country Boose Hotels. 
Along with 89 mdividnalty fnmmhed bedrooms and two 

T»wtmirant« rfhw Tc^nr"", 

pool. Croquet lawn, Jogging trail and Snooker mom. 

Daring the month of August (vafid 6th to Slat August) an 
unbeticvabJe price of £34.50 per pereon per sight inrinaive of 
IfagUabhreakfertfeavailaUe 
Far reservations Telephone 0628 891010 



MARLOW, Buckinghamshire 8L72EY 


Einvutni.w Ei-Ega.nce'^IBBP^^he Polurrian Hotel 
tf U* w - 

S« an endunSiiB poster owriwWng sandy ran. Sunoutiad by NsHontl Tnur Coasilna, 
sea and bosh Comtati ak. Eacadhtanta art outta (ahum bdBfuwtn 
regtered nanny and aacte- Gofing breaks anfaMa. 

A sense of calm and seclusion in a busy world, 
tw hrtier«*irini*jri 8, cokxr hrodira 1^: (U326) 240421 -Fax: (0326)240083 
5 or mitt Ritaon Hotel. MAnUardPBnkaufa,Soufi£oriMlTRi27EN 


At This Superb Town House Hotel 

CORPORATE ROOM RATES FROM JUST £55 FULLY INCLUSIVE 
WITH COMPLIMENTARY CHAMPAGNE WELCOME OFFER 


* Overlooking Hyde Park 

* 55 Personalised Rooms 

* Deluxe Rooms & Suites 


* Private Car Park 

* Restaurant & Bar 

* 24 Hour Room Service 


LONDON ELIZABETH HOTEL 
Lancaster Terrace, Hyde Park, London W2 3PF 
Tel: 071-402 6641 Fax: 071-224 8900 


. Have a restful and .relaxing 
holiday Ip the pleasurable 
*• sumxkiictogspfour luxurious 
. paradise, a special vjtau 
programme: medical anen-, 
riance', relaxation training 
, and massages will help You 
to rechaige Your beflieries. 

VITAL-'- 

■ ' ANTI STRESS WEEK ■ . 
’ 6 n®us, halfboard 

.. package offer: 

DM 1.885.- p. p. - : 
..(irrKh^darootnsJar 
• ■ YomhaSdittsusnccf. 

' vual Hold Royal. 

.VGIOOSedCkimrot \ w 

Td. ++43/52 1 2/443 J-0 

Tax 443 1 -350 -Y 

8 Qf 

Moritz 

I HOTEL 1 

*-C O R N WA L L-* 

Msgriflccnt poattbfl owriookinj 
Creod atetey, dsnio beaches, 
miniport*, pH course* and wonderful 
com * couoy waft*. AO tokom* 
nsdteft equipped U>Hgh tiandvd. 
Excdkut aUot, choice uf2 raumi 
Superb new ktanre areptervitti Indoor 
pool. mo*. «am room ft JoaazL 
AJroSeff Cotering VBte A AjwnmeW. 
Write or phono for colour brochure. 
Trebeihcrick. Nr. Wade bridge. 

Cornwall PU7 6SD 
Tel: (0198) 862241 
Fax: (0208) 862262 

EGONRONAY AA*++* HAc" 

Luxury Breaks 

'THE _ 


THE BLAKELEY] 
HOTEL 

etb »»•» 

AA/RAC ★** 
Blakeney, Nr. Hot, 
Norfolk 

Traditional privately 
owned friendly hotel 
overlooking National Trust 
Harbour. Heated indoor 
pool, spa bath, saunas, 
mini gym, billiard room. 

Visit to relax, walk, 
bird watch, sail, play golf, 
and view historic places 
including SaadiinghartUlhc 
Norfolk villages, 
countryside and coast. 

MIDWEEK AND 
WEEKEND BREAKS 
SPECIAL FOUR DAY 
HOLIDAYS 
Telephone 0263 740797 
fora brochure is 


Kingston 

House 



‘An Exceptional Experience' 
Adjourn from the hubbub 
of life to a period suite in 
one of England's most 
beautiful houses. 

R* briber tafonmdofl ooiHacb- 

Kingston House, Stavertan, 
Totnes, Devon, TQ9 6AR 

Teh 0803 762 235 
Fax: 0803 762444 


HOTEL 


Victorian Manor Bouse. Satin 
300 acraa of hillside woodland. 
IdsaRy located lor cqdaring the 
beautiful Gwsst Conntryoida. 
With, caiafna prapared by Trejbr 
Jones. Welsh Chef of the Year. 
Indoor Pud ft Leisure Porilrfioo 
tSOJOO par person per night 
Dinner, Bed imd Brea k fast. 
CFri, Sat nr Semi 

The Celtic Manor Hotel 
• Cdldra Woods • Newport 
• Gwent • NP 6 2YA 
TEL: 0683 413000 13 


WILLET HOTEL 

32 SJoane Gardens 
London SW1W8DJ 
Telephone: 071-824 8415 
Fax:071-730 4830 
TeteJC 926678 

SmaU character town 
house, off Stoarw Square. , 

AA modern facSffes. Full j 


of very modest rates. 17 


Although within easy reach of London and the Home Comities, 

Nutfield Priory 

fa ew oMrie of tranquillity in 40^ ^ acres of its own grou nds a nd with 
fa^rt tt^iri-ng «ww of Stirrey and Sussex countryBide. 

Aejdme break rates include: -, r ■ JJ-% 

Accommodation in doubtaJasin bedded rooms, /ftAagJWM JA, A - - 

Traditional English breakfast, : 

3 cowrie dinner and coffee in the award %^rvmrf5lCm * < 

winning C loi ster s Restaurant, 

Fall nse of luxury leisure club's gym, pool, 

squash, smote and mack more. Newspapers, ^ .- 

torn doom service and VA T. 

£40.00 per person par day in AngasL J 

2 nights minimum stay. . . ^ 

NUEPTELD PRIORY, NUTFIELD, BEDHnX, SURREY, RHl 4EN. 
IXLBPHONBiJffiCKPTION <0787) 822068 EAX(0737) S23321 



The 

Essential 
Hotel 
Guide 

For details of advertising in the 
next Essential Motel Guide, 

*i on 27th August 1994 
please telephone 
Alison Prin an 
w 071 8733576 




9 HIGHB ULLEN 

Country House Hotel, Chlttlehambolt, North Devon 
* Secluded Yet MamBou* Views. * Highly Rated Restuuant. 

■ 35 Double Rooms With Bath, Colour T.V. 
fa) all the imparthl Hotel Guides 
£47 JO - £70 per person, including dinner, breakfast, service, 
vat and UNLIMITED FREE OOLP 

OVEJR U MILES OF SALMON ft SEA TROUT FISHING 

brim Aeodoor bmtadpHh, aouloor* INDOOR Mb, 

iCeuu »x»ii ,»n n l) H l.>pabt, b dnci )Simn.ab «fc n ti. t )« rn ih< y n m 
SDtfcgam&widce«p iaft « ri a wO .&«ga>Mawl i s Mnn ) M i3a 
CtHnoMfS. 

RIVERSIDE UEXS 4 ereaite bcftoaoN seff criering (services srelliUeX 
85 acrean cirnt w cMrl lau d . 

Telephone 8769 540561 



NON STOP-OR FULL STOP? 

Which will you enjoy beet? The magnificent and 
luxurious Manor overlooking a bountiful wooded valley, 
or the huge range of fazsura and sporting faculties? 
Come ana deride for yourself. For Brochure contact: 

COMBE GROVE MANOR 


Mooktim Combe; Bath. TeUOSSO) 834644 FfcctOSSS) 834861 



DOCK HOUSE 


HOTEL k CODKTKY tSTATt 


If you're looking for a short break with ii difference then visit 
Gtcddodu Formerly a family home, Gleddodi offers a country retreat, 
yet is only 15 minutes from Glasgow Cdy Centre. 

For the sports enthusiast we offer an 18 hole Par 72 golf course, 
equestrian centre and squash. Alternalioeh/ take a peaceful stroll 
through our gardens, or ptsi relax and enjoy our spectacular mens. 

AUGUST SPECIAL 

3 Course Dinner, Bed & Breakfast £55.00 per person per night 
sharing. Stay three nightg or more and enjoy a nights 
accommodation FREE. 

Laaogbank, Renfrewshire, PEU4 6YE 

Tel (0475) 540711 Fax (0475) 540201 18 


inthaSurrayfi 


, readily accessible, with breathtaking eieto* 
at architecture and, design. 


Y ‘ If yon want to promote 
yoor hotel to a discerning 
& affluent audience 
don't miss the next 

ESSENTIAL 
HOTEL GUIDE 

ON 

27th August 1994 

For farther details or to 
reserve yoor space please 
telephone 

ALISON PRIN om 
071873 3576 
or fax details on: 
0718733098 


37 KCCLESTON SQUARE. 

VICTORIA, LONDON 
SW1V I PB. T»fc e7J-*» 6812 

Friendly, privnelwttl io ideal, 
cen tral, quiet location overlooking 
magnificent gardens ot sanely 

residential square, dose to 
Belgravia. Comfortable Sinfiea 
Brem £3480. 

Doubtea/TwiiM from £583X1 end 
Family Rooms from £75JM 
mdudiug good 

ENGLISH BREAKFAST & VAT. 
Also loffry 2 bedroom ft sbuBe 
spertmeets Imln. M3 months) 
COtOUMBBOCBUKB 
AVAILABLE 

Egon Ronay/RAC Rseommended 


4_ 


THE 3 

SWAN HOTEL 

SOUTMWOLD SUFFOLK 1F1S SRC 


Covr/TJtr Living MjlGazmntx - Book or B&cajpks: 
Gold A.waju> - BsbvJUotkl 1993/94 

The perfect place to reoover your peace of mind. Nestling in the 
Marta Square in one of the last unspoilt towns m England. 

The Swan continues to provide old fashioned comfort, 
memories of another age. 

TranqoQity sod rest are the order of the day. Our food is delidotn, 
oor wine flat is excellent and breakfast means afpnBpgKah feast 
Small wonder that three quarters of our guests are regulars 
on a return viric or have been recommended to come here 
by their friends. Itk that sort of place. 

Southwold beach - awarded EU Blue Flag, 

3rd year running. 

TELEPHONE: (0502) 722186 FAX: (0502) 724800 
Try ns, this is hoto life ought to be. 


/■//;•: iv i \n s ni ifiwoii) ni:i.i<;nrn 1 1 n'.ir.ix \rt<> 



7 iaai m nr i«a«i 

F0LKSTUNES PREUBt HOTEL 

Elegaat Regency-Style diir cop 
80 bcchooau aKitUe, xateUilc TV, 
welcoowlmy, tbkptiiw.Sotatam. 


•• 1 — O 

ludw 11 

Escape to this most exclusive 
address. Elegant 19th 
century town house hotel, 
situated in the beautiful 
1 surroundings of Bury St. 

’Krimimifa- 

1 Intimate and friendly 
atmosphere; antiques and 
; period touches throughout; 
detightftil Italian garden; six 
luxury bedrooms Loci four 
poster decorated to the 
highest standard. 

Weekend breaks from £110 
for two persons. Treat 
yourself to the best. 
Johansens recommended 
ETB Highly commended 

SAC Highly Acclaimed 
AA Selected 4Q 

Teh 0284 704088 

TmelFa Angel BDl, Bury 
fit. ff iliwMm L W i ifF iJlr lirit ltJZ 


WtJu __ 

L '- k d-.j 


The C^d Swan is lecognitKd ea *ooe 
of the finest hotels in the CotswoldaT 1 
■nd has been welcoming vbhotv for 
over 600 yearn including Ridurd HI 
accord in g la Che stories). Our 16 
bedrooms are Individually furnished 
and the restaurant renowned locally 
for Us personal service and 
quality of food. 

Price fS5JQ0 pes person per right 
indative of Dinner, Bed end Full 
EngUsh Bxeridast 

AUGUST OFFER 
THREE FOR TWO 

During August book two nights and 
stwf the Sard ntgjht irtchanx qf tBnner 
cmapkteh/free 

IfaeOldSwm 
M iaa terlordl 
NuBoffocd 
OxforiUdre 0X8 SRn 
Telephone 0993 774441 



GET LOST ! ( 


In a luxury Connemara 
hideaway by the sea. 

An oasis of character, calm, chann, 
comfort and atisme. Our own 
besch, bikes, woods, mmmtams, 
100 year oU gardens, fishing, 
tennis, boats, tiffing, stables, wrf 
fires, pas welcome. library and 
mini-suites. Golf locally. 

CASHEL HOUSE HOTEL 
CONNEMARA Co. Galway 

"Miles Prou Anyvueke ’ 
aoroMjr3maasnaiiLottooi* 


'I'd: <;5i ,v 

I ;i\: .Dill d5-> ‘>5: I 


COUNTRY HOUSE 
HOTEL 


Award winning Georgian Manor 
set mow 300 acres ef deer peak, 
lakes and gardens and within 
half an hoars drive of Ac Souft Coat 
2 ntems Dinnek, Bm 
At Breakfast from 
£ 118 PBM PESSON 
induavetjfVXTandusecfour 
heakh dab and heated outdoor pool 
For Colour Brochure: 

Buried, UckfieU, Bast Sussex 


" OS 25 732711 


ESSENTIAL HOTELS 
BROCHURE GUTOE 

ORDER FORM 

Please enter die appropriate number for the hotel brochures yon would like to receive, enter 
your own name and address and then send or fax tins coupon to the address shown. Replies 
most be received no later than 27th August 1994. 


I. 

Danesfield House 

□ 

12. 

London Elizabeth Hotel 

□ 

2. 

Vital Hotel Royal 

□ 

13. 

Tlie Celtic Manor Hotel 

□ 

3. 

Swan Hotel 

□ 

14. 

Combe Grove Manor 

□ 

4. 

Minster Lovell 

□ 

15. 

The Blakeney Hotel 

□ 

5. 

Polnrrian Hotel 

□ 

16. 

Kingston House 

□ 

6. 

Twelve Angle Hill 

□ 

17. 

The WiHet Hotel 

D 

7. 

The Clifton Hotel 

□ 

18. 

Gleddoch House 

□ 

8. 

St Moritz 

a 

19. 

Nutfield Priory 

a 

9. 

Highbullen Hotel 

a 

20. 

Elizabeth Hotel - 

a 

10. 

Cashel House 

o 

20.a Elizabeth Hotel & Apartments 

□ 

11. 

Biucted Park 

□ 





TITLE 

ADDRESS 


INITIAI SURNAME 


POSTCODE DAYTIME TELEPHONE 

WEEKEND FT ESSENTIAL HOTELS 
BROCHURE SERVICE 

(Ref 11/94) Capacity House, 

2-6 Rothsay Street, London SE1 4UD. 

Fax No: 071 357 6065 

ThelsfiiCBHrimt you provide wQl bo hdd by the PfauacWnmci aad ray be used to beep you hfimnadofFT pradne* wd by other 
seJccnd (ivnnantM for mfflm Mat a w ipo nra .. The FT j$ regjgterad antter the Dm ftutealoa Act IS64. Fhancial That M —*-,. 
One Soadiw w t Bridge, London SE1 9HL. PtaMe defc flib box If you do not wfah to mcrire rey finthw mCaonatiaD from the |»r 
Ctra^) or compvuic* »piwo vcd by the FT Group. □ 





r ... JM &: " 











XU WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY MWULY 31 l‘W 


L ,s» li* 


PROPERTY 


T he Caribbean has long 
been the playground of the 
rich. But as the cost of 
flights has fallen and the 
islands have become more devel- 
oped, the possibility of buying prop- 
erty in the Caribbean has been 
opened up to larger numbers. 

The allure of the Caribbean, with 
its white sands, turquoise seas and 
carefree atmosphere, is such that 
even casual visitors are persuaded 
to buy holiday homes there. 

The range of property on offer is 
large: from luxurious villas offering 
privacy and exclusiveness, to mod- 
est apartments in resorts boasting 
discos and casinos. Buyers can walk 
into ready-furnished v illas or else 
they can start from scratch on a 
plot of their own. 

Potential buyers can choose 
between bustling islands Like 
Antigua, where it is possible to 
party every night, to tiny, exclusive 
islands which are peaceful and 
charming. Recluses can play the 
part of Robinson Crusoe by buying 
their own private islands. In the 
British Virgin Islands, for instance. 
Green Cay and Sandy Spit - a one- 
acre island rimmed by white sands 
and reefs - is being offered for sale 
by Smiths Gore at 51.7m. 

Property values are now back to 
1984 levels baving fallen 40 per cent 
since the boom in 1987-1989, when 
values were supported by an influx 
of money from high earners abroad. 
Some of the most expensive proper- 
ties are not bargains, however. 
“People who are not forced to sell 
are not prepared to drop the price,'* 
says Fred Connell, of Smiths Gore, 
property consultants. 

Caribbean islands vary greatly in 
their terrains, atmosphere and lan- 
guages, typically English, French 
and Dutch. Barbados, which r anks 
as one of the most sophisticated, 
well-established and expensive of 
the Caribbean islands, is the most 
popular for British buyers, followed 
by the British Virgin Islands, St 
Lucia and Antigua. 

Most potential buyers of Carib- 
bean property want to visit a num- 
ber of islands before making a deci- 
sion. “People investigating buying 
properties in the Caribbean take 
their time." says John German, of 
Cluttons. 

He is marketing property on the 
island of Providenciales in the 
Turks and Caicos Islands, an 
English-speaking island known for 
its scuba diving. The Richmond Hill 
Estates, for example, has eight four- 
bedroom, three-bathroom villas for 
sale, half a mile from the sea, in a 
complex with tennis court and 
swimming pool for sale for 5285.000 
(£171,000). Beach-front property is 
more expensive: the asking price for 
a three-bedroom beach-front prop- 
erty is 5950,000. The company is also 
acting for Isles Bay Plantation in 
Montserrat, a British colony, 27 


Gardening 

Just dying for 
a drink 





r 


Paflatfian- style W&abefle House, in Sandy Lane, Barbados, with spectacular sea views, was sold recently for around S3.Sm 


The Caribbean’s allure 


Vanessa Houlder on the growing accessibility of a rich mans playground 


miles south-west of Antigua. 

Isles Bay Planation has two 
remaining houses for sale, although 
it has additional sites awaiting 
development. The villas are Carib- 
bean style, complete with verandas, 
shaded loggias, double-height ceil- 
ings and natural timbers. 

Prices ranges from $300,000 for a 
two-bedroom house to 5695.000 for a 
five-bedroom bouse. Management 
charges are about $6,000 a year for 
looking after the houses, pools, gar- 
dens and rentals for the owners. 
Montserrat has just abolished 
exchanges controls, which will 
allow buyers to raise a mortgage in 
US dollars at far cheaper rates than 
Eastern Caribbean dollars. 

Nearby Antigua is more highly 
developed. The island, which was 
colonised in 1823 by English set- 
tlers. boasts 365 beaches and a 
developed tourist industry with 
plenty of restaurants, car hire, golf 


and scuba diving facilities. The 
building boom, which began in the 
mid-1980s, together with the sharp 
decline in the market, has left an 
abundance of property, at a range of 
prices. 

At the market's cheaper end. buy- 
ers could consider Jolly Harbour, on 
the west coast of Antigua. The proj- 
ect. which was developed by Dr 
Alfred Erhart, a Swiss entrepreneur 
who pioneered mass market tour- 
ism in Majorca, is one of the largest 
developments in the Caribbean. 

The 500-acre scheme, centred 
around a marina, comprises 500 
two-bedroom terraced houses - 
each with a private jetty. The villas 
cost around $125,000: the manage- 
ment charge is currently SI20 a 
month. Plots of land are for sale for 
hundreds more houses. 

Round the coast, the St James’s 
Club village on Mamora Bay con- 
sists of 73 two-bedroom villas, set in 


tropica] gardens with three swim- 
ming pools. Prices range from 
$350,000 to $475,000. Service charges 
are about $1,200 a month: insurance 
is about S2.000 dollars a year. 

Jumby Bay Island is an island of 
300 acres two miles north of 
Antigua. The shortage of rain is a 
boon to holiday makers although it 
gives the place an arid appearance. 

Jumby Bay prides itself on its 
quiet exclusiveness, which is 
reinforced by the absence of televi- 
sion, radio and telephones from the 
island- It has 12 villas for sale at 
prices between S1.2m and 51.5m. Its 
beach-front villas are clusters of 
buildings around a terraced patio 
sheltered by a large umbrella roof. 

The majority of developers offer 
to organise rentals for purchasers, 
which will help them with their 
running costs. These are often 
heavy because of high local taxa- 
tion and high repair and mainte- 


nance bills. 

“If you want to let the property, it 
is best to buy near a golf course, 
marina or holiday cottage com- 
plex." says Allan Lazurus. of Prime 
Property Services. The best chances 
of obtaining a letting are in the 
high season between November and 
May. 

But the charm of the islands 
should not seduce potential buyers 
into ignoring the possible disadvan- 
tages of buying property in the 
Caribbean. 

“Our advice is to buy with no 
expectation of economic return," 
says ConnelL “If you can get a holi- 
day home to keep its value, you 
have done quite welL" 

■ For more information in the UK 
ring: Prime Property Services 
(071-627 1313): Jolly Harbour. Villa 
Sales Information (0932-786805): 
Cluttons (071-108 1010): or Smiths 
Gore (071-222 4054). 


The rain has been circling around 

Britain but It refuses to land on my 
garden. I am living like the ancient 
men of Santorini. On their Greek 
island, they are said to have 
endured a drought for seven years 
because they did not do what a god 
bad told them. Since June 3, it has 
rained once In my Oxfordshire gar- 
den and the phloxes are hating it. 

The Santorini solution was to 
uproot part of the male population 
and send them away. 

The exiles from the drought 
found a new home in Libya. Later, 
their new city was famous for saf- 
fron crocus, which they had either 
taken with them or had sent on by 
a subsequent boat 

Should I wrap-up my crocuses 
and make a bolt for it? Dry weather 
sorts out keen gardeners from the 
rest but, unless it lasts for another 

six years, it will 

not make me 

uproot. However. Robin £a 
it will teach us all 

some basic truths trying tC 

weather ir, 

about weeds. You nf Qxf\ 

may wonder why J ' * 

serious gardeners " " 11 

are so keen to pull them out or 
poison them. The answer is not just 
visual or psychological. Weeds com- 
pete for water and if you let them 
run around, as the mindless school 
of “green" gardening commands, 
the results show in a dry spell. 
Weeds make drought worse. 

The second truth is about roots. 
Theoretical experts sometimes like 
to tell us that there is no point in 
watering plants during dry weather 
or in feeding them through their 
leaves. 

I believe this to be non-gardeners’ 
rubbish. It does not distinguish 
between newly-planted and estab- 
lished plants, between deep and 
shallow roots and between loose 
notions of “plant food” and their 
need to drink. 

Probably, we can make little dif- 
ference to an established tree which 
is beginning to flag in hot weather, 
even if we water it for half a day. 
We can. however, save newly- 
planted trees, shrubs and border 
plants and we must do so. extend- 
ing our saving act to anything up to 
three years old. 

We must also remember that 
some plants send fine roots along 


Robin Lane Fox is 
trying to beat the 


weather in his corner %£&£&££■ 


of Oxfordshire 


TuS hire fierce and count- 

er-experiment, 1 
know that their 
argument is not one for inaction. 
Those plants which arc excluded 
from this treatment are noticeably 
worse. 

Lastly, the matter of leaves and 
toughness. All around you, you will 
see once again the evidence that 
plants with silver, furry, thickly- 
coated leaves are surviving without 


any particular trouble. They remind 
you of thdPvalue of matching a 


you of thdpvalue of matching a 
plant's natural preference to its pre- 
dicament in your garden, if you 
want a trouble-free life. 

1 notice the relative happiness of 
my trees with glossy green or grey 
leaves, the alders, the ornamental 
pears and particular forms of Sor- 
bus. I also notice the exceptional 
happiness of the blue-flowered, 
grey-leaved Teucrium and the flour- 
ishing of all forms of Salvia. 

If the ancient men of Santorini 
had grown the curious great and 
black Salvia discolor and the lovely 
half-hardy new Indigo Spires, they 
would have packed them off to 
Libya with the crocus. 

If I have to bolt far it, this type of 
plant is the one which I would take 
to a second home and a new start 
on the Mediterranean fringe. 


COUNTRY PROPERTY 


INTERNATIONAL PROPERTY 


WEST YORKSHIRE - 
NEAR WAKEFIELD 


Wakefield 5 miles. Leeds 16 miles. 

Sheffield 20 miles. Barnsley 6 miles. 

An outstanding Grade II Listed country residence set 
around an attractive cobbled courtyard and enjoying 
superb views over the robing countryside. 
Reception hall with dining area and galleried sitting room, 
drawing room, dining room, study, breakfast kitchen, 
cloakroom, master bedroom suite 5 further en suite 
bedrooms. Leisure wing including swimming pool, sauna, 
entertaining rooms and bars. Triple garage, stable block, 
general purpose building. 

Arable laud, grassland, woodland, lake and stream. 
Some 111 Acres 
For Sale by Private Treaty 
Cluttons, Regent House, 

13-15 Albert Street, Harrogate, N. Yorks. 

Tel: (0423) 523423 



Humberts 


Isle of Wight 

Limmpim 4 rmlr>. Vkpni » nuta,<'uw« * »ule» 



PROVENCE - LUBERON 


Between Abe en Provence and Avignon. Old and 
authentic Bastide in a beautiful setting with panoramic 
views. Reception, 7 beds, 7 baths. All restored with 
taste surrounded by 4 acres or more, Mature trees. 
Large swimming pool. Exceptional property. 

Tel: (33) 90.72.01.00 Fax: (33) 90.72.10.82 


295 ACRES OVERLOOKING 


BUCK COUNTY, PA 


Three prime seaside development sites with 
direct frontage onto the Solent 

Two new build residential plots in a setting Including mature trees and 
spectacular views north o»er the Solent towards the New Forest 
• Former nautical school suitable for commercial or residential use 
with slipway and sea frontage * 

For sale as individual tots ; 

Joint aeencsi Humberts Loudon office 071-629 0909 ' 

or Christopher Scot* (09*3) 721777 S 


A meandering drive graced by rolling 
pastures leads to striking fleidstane 
manor home. Gracious well 
proportioned rooms with exquisite 
architectural detailing. Pool, tennis 
court, horse bam, farm managers 
house. Second genttamens term on 
95 acres. 


MONTE-CARLO 
Metrople Palace 

for Rent in luxury 
building with 
swimming pool. 


From 2 to 8 room 


Usa James Otto 
Couifey Properties 
New Hope. PA. 

TaJ USA£Z15-88Zn26Z6 


SWITZERLAU 


apartments 
air conditioned, 
parking space & 
cellar (Ris) 


■MM Oar atm %m 

[Lake Geneva & 
Mountain resorts 


A AGEDI 


STRUTT a A 

PARKER^ 



784 acres/317 hectares 

SUTHERLAND 
CUTHILL ESTATE 

A residential. Farming, Investment and Sporting Estate 
■ bi a beautiful and accessible location by dm sea ■ 

I attractive period hnnhotric ■ 3 cottages ■ arable/stock farm with steadings I 
■ let tann producing an dual income ■ mineral deposits ■ 

■ wild and varied rougi shooting and e xc el le nt wlldfowlirtg ■ 

■ approximately 2 miles double bank salmon and sea trout fishing ■ 

For sale as a whole - Offer? in excess ofOStJN 
Contact: Job Lambert 


CUCKFCELD. WEST SUSSEX 1 

llaywanfe Itealb MLS IV, antes 
Vkmrb/Loadofl Bridge 45 -50 mini 
Am ontsuodlDg cooatry bouse hs 
eoaveoicBr sedoded podthm. 

3 t aapiaw mow. KkchWbmhfeu roam, 
abediwim, ibcang ram. 4 hiriuousu 
(3 tasalK). ganging f* 3. Delightful 8*dcn. 
p*d*x±s. wJ aitaoi 

Abort 1 1.5 A au 
Offcn m ngkrn of £**5.000 

HAYWARDS HEATH OFFICE: 
104441 441IM 


INTERNATIONAL 

PROPERTY 


. - ,'R- X_: ¥ T' . a. [4 >i L a 'y lf. 


7/9 Bd des Maul Ins MC 99000 Monaco 
.Td 33-92 Ids 959 Fax 33-93 SOI 942 j 




REV AC SLA. 

5Z.n»9> KostMM-CH-17ll GEHEM2 
M. m 4132/ ?S4 1548 - to 


COTE D'AZUR, ALPES UMVT1MES & VAR 
SPA (EU) saHs the best Apartments 
and Villas M Cannes, Monte Carlo, 
SL Tropez, Vance, A nti b es . Menton and 
o trier desirable exclusive locations. 
Tot 071 -403 0808 ftnr 07T-483 0438 


MADEIRA, PORTUGAL ApoVnanu bom 
£40.000. houses up to £300,000. For 
Information Tol/Foa (331) 91 232477 or 
witlo AHOPRSXO WJA DO SABAO 87 1. 
C9000RMCHM.IMMMA. 


BARBADOS SUNSET 
CREST RESORT 

1 bedroom condominium. 
US$50,000. on fashionable 
St. Jamas Coon, [ally furnished, 
view by appointment only 
22-31 August. 1994. 

Call USA, Sylvia Robinson, 
817-291-6024 or tax 917-42S-8M6 


COTE D’AZUR noor Uonaoa sue biteacc 
dweetesenbedsm 3bN\ pot l**hes2 
htePenspois£l8GJX>lTtfOt03393B2S2 


LONDON PROPERTY 


LONDON 

RENTALS 


ANDRE LANMJVRE& Co 


Ndwork Rebeetiesu 


Perthshire Pitlochry 16 miles. Perth 43 mUcs. A superb Georgia* 
mansion boose surrounded by hnrnscntnie gardens and grounds. 
Drawing room, dining room, library, fitting room, kfr e fac a, 10 bedrooms, 
j hjnlhthJ^^ and 2 dressing rooms. Kcepcrt cotzago, lodge cottage, terete 
court- Magnificent formal gantoa. Tr udMnral cwnryari ar at Sng . 

About 30 acres. For sale as ■ whole win 2 Ms. 

Edmbu»^Q(Sce;TA03l-2262mFa^^l-Z2625W- KetJBpqQ*. 
13 HILL STREET BERKELEY SQUARE LONDON W1X 80L 
Td: (071) 629 7282- fax: (071) 409 2359. 


ISLE Of WIGHT 
WEST COWES 

A handsome Grade II* ISA ccauuy 
boose in the High Street, with sea 
views from the upper floors. About 
&0QQ Sq fL Open for viewing daring 
Cowes Week. Substantial price 
reduction, 


Price GtAtaCSe^OQ 
HOSE RHODES DICKSON 
0983 521144 

JOHN D WOOD & CO. 
0590 677233 


if 1 V A confidential and discreet 
home finding service by independent 
experienced property experts far 
prioate ar corporate cheats. We cover 
Sussex. Rent, Essex, Berts, Bucks, 
Berk * and Surrey. We can reduce 
stress by saving time, effort and 
money, overseas cheats are welcome. 


Yul: (03231 5OS307 
Fax: (039$) 60843 8 


RETIREMENT 


STYLISH LIVING 


! English Courtyarti cottages are designed for 

comfortable living, even in small details such as the siting of 
sockets and the height of worktops. 


Our development at Wrote***™® i near Sallsbn 
may look as if it's just stepped out of the ] 17th rantury, bu 
incorporates everything which has earned English Courty 
its mo ny accolades. 

prices are from £155,000 

To find put more about three and other retirement 


BeutiMIy rppoinied linefeed residcqre 
B^olnJag CHAMPIONSHIP GOLF UNKS 
titm tod act, » bvndred ymfa fare the to. 

Lwadwi 3 Iwn. Cm carnal heating. 3 
Rcccptioa. Breaks* Roan, wperb Uichcn. 

findii UdlUj.4 DoaHc Bcdroosw. 3 
Buhom DOUBLE GARAGE. Laata^xd 
(Mdcns INCLUDING BUILDING PLOT. 
Often famed Apply: 

C o fcbrook Storrocfc A Co. Saadwkfa 
0304 612197 


HERTFORDSHIRE 

Welwyn 

Principle part of a classic red 
brick Georgian house in village 
setting with delightful private 
gardens of ly* acres. 

Well placed for the commuter 
PRICE: £400.000 
TEL: 9438 718877 Fas 0438 714468 


UPPER PHBLLIMORE GARDENS, W8 

A handsome semi-detached period boose in one of London's 
most exclusive locations; the boose has recently undergone 
complete re-modernisation to provide a wonderful and 
comfortable family home with good entertaining space. 

+ Entrance Hall ♦ Drawing Room -J* Dining Room 
+ Kitchen/Breakfast Room & Study + Family Room 
+ Sitting Room 4- Master Bedroom Suite (with ensuilc bathroom. 
Sitting Room & Dressing Room) 4* 6 Further Bedrooms 
+ 4 Further Bathrooms + 2 Guest WCs 
+ Maids Quartets consisting 2 Bedrooms 4 2 Bathrooms 
* utility Room * Passenger Lift + Air-Conditioning 
+ Garden 4* Space for Off-Street Parking 

LEASE: 72 Years Approx £2.85 MnjLiON 


KNIGHT5BKIDGE, SW1 
With some 1.M5 *q ft t I5J *q m) uf 
acammedaltan a Hot floor 3 bicdnxjm 
apartment forming pan at a portend 
period manMi bluci sw 
2J0 yards hantiimds. 

Lw*? 39 yean unopiml 
07ffin 
SatoAgmta 
071-7300822 


WOBUttK PLACE WCt. A wtaetton 01 
nourty mod. Bats In p/b block. Wool pie d 
4 tones. C4B.500-Wg.350 MacMMana 

wort aee into Fa* on see tur 


Eaton Square, SWI 

Elegant 4 bedimmed UNFURNISHED I 
apartment. Very Large raora, ideal for , 
enrertammg. drawing room, di n ing ' 
tuom, utility room, J emviitt ttttnoam, 

1 shower room, kitchcn/bmk&ut mom. 
£1200 per week. 

Onslow Gardens* SW7 

Spacious 3 bed roomed roabnacttc. 
laigc reception worn with French 
windows to communal gulden*. 
Krtdtetv break fast room, i balbwnri. 
Elegantly furnished 
£800 per vest 


A 


ht 


the surface and arc always the bet- 
ter for a soaking. Others will either 
push - or be coaxed into pushing - 
thotr roots down to a depth where 
they can draw on cool reserves. 

Even so, U Is quite wrong to tell 
gardeners that these sorts of plant 
con be left alone. In their early 
years, they also need support from 
us. whether hostas or. hellebores, 
and only then will they push down 
and need no further assistance. If a 
recently -plan ted hosts or day lily is 
flagging, for heaven’s sake water it 
at once. 

Droughts also deny our plants 
their “food*. The basic feet is that 
plants cannot eat. although writers 
and advertisers imply that they can. 
They are sustained by liquid intake 
and uptake. 

Experts may argue that attempts 
to spray fertiliser in a liquid form 

on to a plant’s 

leaves are unsa- 
fe Fox is tisfaciaty because 

l. so little hits the 

0€at trlC target and is 


LOUOHTOH, ESSEX. Preattgo HW, 2 
mins UH. 30 Cty. S bd* 3 4 

me. ta poet mjMrt) 30 bod carnage 
■AM. C48S4QQ061-G02-3SS6 


Hamiltons 


Tel: 071 792 4330 Fax: 071 792 195S 


CHELSEA HONESEMCH 4 CO We 
ropresont the buyer to save tlmo *tW 
money: 071 9372281, FaxOn 3372292. 


WAPPlNO. CLOSE TO THE CITY 
2 bow? mth apL W9i batoony (umWWd m 
award whining development by BOVtB 
Home* with cor praW paranaal Imw oyd. 
CS7S*nL Tat 071 481 2347 


APPOINTMENTS 


STH CORNWALL Experienced estate 
a senta required. Write to Debbie Frost 
inter & Go. Manchai Kouk, Thkj TR1 SFF 


SURREY 10 MINS WALK WOKING 
SBten (Wattriao 27 mina) z bed duacter 
can* NMe. Lovely garden. quU posfeion 
omo et&OttO' T* M83 42B07Q day 0489 
727566 evening 


BUYING FOR INVESTMENT? We Identify 
the best opportunities for you throughout 
central London and provide a complete 
package service: Acquisition. Franco, 
Firntohrifl. Letting and Managemen t For 
M daufe M: MWIPC-071 4S3 4291 


TOTTER I DOE GREEN - LONDON N2 
Supem ThoW prtp. fri exckidiva location. 4 
Beds - 4 Raccp ■ Cons - Obi Oar SiC 
Arrow- Apo. I'/, acres sac. gartens and 
V«ls Ofcsam rural mews CS8QA0Q nwM. 
Q4S4 8903S3 fbenard Watson A Adddc. 


INVESTMENT 

PROPERTY 


KENSmaTOMCSNntAL LONDON Lflgaat 
MtacUon at queuty ptap*rtV»i,-C'®9- 
EtSOOpvr. From 3 wke m 3 yre. Chart 
Aaeoctons 071 8382606. HMpRI 


BARBICAN 6 CITY PROPERTIES. 1-4 
bad lab. Call tar 1st ml tnctara Bjmart 
MawTet 071 6362736 Fac 071 OB »«9 


CITY EC4. 1 bed PiM a tone avHn river 
views. Mod p/t> block. £09.980. Barnard 
Marcus Teton 636 3736 F« 071 438 3M0 


MA1PA VALE wo. 2 auM*i*« pert vacant 
rod brick period 6 uH dingo Overt poking 
communal gardens. £540.000 ItaMflbns 
Tet071 2661010 Fax: 071 2661117 


AH EXCELLENT SELECTION Of 2 be&mn 

fumraned Bats sflusMd bi Cbartertrasa 
Stmot, dOM io Q* «4Mtt todMM d «» 
Barbican R2M.00 - C4O0.M pet ***• 
Knight Frank 4 FUey07l-i60 8640 


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WAPPWO. CLOSE TO TOE CltV = 
B«t 2 ben bpL ki riail Mg OeeUF"* 

WBCMS Hama «lh car pnhfpoKraoininN 

art- cappwKTst on -at 2*7 


1^- '■“**•*— 





WEEKEND FT XIII 



FINANCIAJL TIMES WEEKEND JULY 30/ JULY 31 1994 



r 


PERSPECTIVES 


Dispatches: Jerusalem/Mgel Spivey 

A j ourney to the 
heart of Zionism 


T he highway from 
Tel Aviv to Jerusa- 
lem is a brief but 
significant route, ft 
is more than a 
road. It is a road heavily anno- 
tated, a road turned scripture. 

First you pass a Trapp tet 
m o nastery ; then a British gar- 
rison fort, stffl trim and intact; 
then, less pristine, a Crusader 
castle; and than, amid eucalyp- 
tus trees planted an steep hill- 
sides by Jewish settlers in the 
last century, you see more 
recent wreckage: burnt-out 
tanks, rusted vehicles and the 
skewed Ruths of derelict artil- 
lery. These are not eyesores 
but studied relics of Israeli and 
Arab claims to Jerusalem. You 
are headed for a dearly dis- 
puted place. 

The harbingers of Jerusalem 
seem half-designed to bri ghten 
your first visit. And if yon 
arrive with, no more tb«u a 
childhood, chapel-bred vision 
of it, Jerusalem, at a distance. 
Is entirely gratifying. 

It is golden. Ranald Starrs, 
when appointed British mili- 
tary governor of the city in 
1917, must have had those 
hymns of heavenly Jerusalem 
echoing in his mind when, litre 
Bernard of Cluny, be indicated 
that he wanted a radiant focus 
for contemplation. 

He ordered that all planning 
permission oblige the use of 
local stone. And it is a law that 
still prevails: there are new 
buildings rising wherever one 
looks in Jerusalem. Even tba 
most brutal high-rise hotel is 
dad with the local pink-to-am- 
ber stone. The city glows. 

I walked into old Jerusalem, - 
as the pilgrims traditionally 
do, by the Jaffa gate, TtubMp an 
boor I realised that the hymns 
in my life had not property pre- 
pared me. Hie topography of 
green hilfc and city walls is, 
not surprisingly, all wrong. 

But no Christian with a 
priming of aesthetic sensibility 
can fell to cringe at the Gospel 
ttemeparfc created here. It is 
largely 19th century work, now 
invested with the fripperies of 


late 20th century tourism. 

Having run the gauntlet of 
hawkers to reach the Holy Sep- 
ulchre. there' is no sanctuary; 
Calvary Is a palace of gaudy 
altars, tombs, cisterns and 
grottoes, , in the precincts of 
which six separate Christian 
factions sedulously compete 
for the pilgrim's custom. I suf- 
fered as two rival guides bar- 
tered their prices for the Via 
Dolorosa, before making my 
own sad way to Gethsemane. 

Some dignity and loveliness 
are retained by the Mount of 
Olives. Yet the verdict must be 
that Christian Jerusalem Is not 
so much golden as brassy. 

- One progresses, at least 
architecturally, to the Dome of 
the Sock. The Christian guide- 


the western side of Herod’s 
temple, which the Romans 
ruined 2,000 years ago, Jews - 
mostly black-clad and Ortho- 
dox: black-clad because they 
are stffl mounnng thu temple’s 
loss - muttered and prayed. 

Mount Son ttself is only. a 
few minutes away. But J now 
understood why gontem. the 
movement which inunr-y ^f the 
concept of Israel about a cen- 
tury ago, is essentially secular. 
Theodor Herd, who convened 
the first Zionist congress at 
Basle in 1997, toyed with both 
Argentina and Uganda as 
potential homes for the Jews. 

Jerusalem is a significant 
city only for f n-n damgntah 
Christians, ftroHamoTifcflli gt 
Moslems and 


T slept on the sofa of an Auschwitz 
survivor: a hedonistic Transylvanian’ 


books admit that the Dome is 
an outstanding example of 
Islamic design, and together 
with the nearby al-Aqsa 
Mosque offers a marvellous 
panorama, up an the parapet of 
what used to be Herod's great 
temple. 

But the ambling, «w^«wrKng 
hordes of the Gospel theme- 
park tend not to make it up 
here. It is the third holiest rite 
of Is lam. P erhaps the most sen- 
sible reaction, of the non-Mos- 
lem is sot to moralise on the 
impossibility of peace here, but 
to do as Winston Churchill did 
in 1922. Having briskly set up 
the principality of Transjor- 
dan, he went to the R oc k and 
set up his easeL 

With a recent call from Yas- 
ser Arafat for a jihad or holy 
war on Jerusalem causing 
much chatter in Israel — in 
Israel, everyone is a member of 
the chattering class - 1 was not 
alarmed to be thoroughly 
frisked before approaching the 
Wailing Wall, which completes 
the religious Disneyland that is 
4he old city of Jerusalem. - 

Under the coinmjy i blocks of 


Jews. Zionists prefer it to be 
theirs, as they prefer Palestine 
to Argentina. But to become a 
convert to Zionism, you must 
move on from Jerusalem. 

Looking at a map, the state 
of Israel is really just as Bal- 
four described it: “a small 
notch" surrounded by vast 
tracts of Arabia. When one dis- 
covers how much of that small 
notch is desert, the geopolitical 
complaint that animates so 
many — why do the 

Arabs begrudge us this tiny 
territory, when they have so 
Timely? — is dfffirn'H- to discard. 

I travelled down to the 
northerly part of the Negev 
desert Invited to lecture at the 
newish Ben Gurion University 
at Beeraheba, my only briefing 
was not to bother with a Jacket 
or tie for the nwvdnn 

True, it was powerfully hot, 
even within thi« oasis. But the 
advice to leave jacket and tip 
at home was not given solely 
out of sohdtude for my cam- 
fort It was also a deferral to 
the shirt-sleeves, nononsense 
persona of Ben Gurion- - 
Labour leads' of Israel, with 


cue interruption, from 1948 to 
1963 arid the I"™ 1 **"' nrahi- 
ence of this town. 

I took it to be -a modal of 
Zionist «hwR- Hew inhabitants 
arrive on an almost weekly 
basis. New houses, new ranis, 
new schools are accordingly 
constructed. The university 
specialises in research on 
water extraction. At Beer- 
sbeba, the desert is in retreat 

.1 slept on the sofa of an 
Auschwitz su r vivo r an impres- 
sively hedonistic Transylv- 
anian w rnnan, whose compen- 
sation pension from the 
German government helps 
keep her drinks cabinet 
stocked. She swept aside my 
suggestion that life in ihte des- 
ert outpost might be duU. 

“Nonsense," she boomed. 
“We have more c o nc e r ts here 
than we can go to. Didn’t you 
know that every plane-load of 
Russian Jews brings us a new 
orchestra?” 

It is a joke in Israel, 

that Russian Jewry - pouring 
into the country at such a rate 
that - gme nnar ket Tn ^ r 
carry Cyrillic instructions - 
are aU professors and piano- 
tuners. And there was a genu- 
ine sense of mystery, among 
the people I talked to, about 
the economics of this sustained 
Influx. There is no evident 
onset of unemployment, in 
spite of the continued use of 
cheap Arab labour for most 
manual weak. 

Hebrew is taught by a 
patently successful intensive 
technique flu spite of the milk 
cartons): voluble abrasive 

as Israelis famously are, their 
discordance is minimal And 
they know it 

As befitted a visitor to Ben 
Gurion U niversity , I was taken 
to a nearby kibbutz. I had 
already learned to recognise a 
kibbxztznik when I saw one: 
any young person who looks as 
thmig h he or she drunk 
vinegar for breakfast The sys- 
tem breeds seriousness. 

Many of those raised by kib- - 
butz collectivism go an to hold 
high office In Israel The rear 



J wS w u not so much goklan aa 


son why many Israeli cabinet 
ministers cany the air of those 
who know how to plough a 
fi e ld fa that many cabi- 
net ministers have indeed 
ploug hed fleMw in their time 
struv» 1967 and the occupa- 
tion of the West Bank, this kib- 
butz can no longer be 
described as a border settle- 
ment; but tiie laager mentality 
of its workers persists insofar 
as talma a t nm at guard 
duty, and immediately adja- 
cent to the «4mni fa a large 
concre te bunker. 

My shirt-sleeved host and I 
inspected dozens of bright Httie 
kibbutz-reared piglets, which 
.brought. more confirmation of 
the secular basis to Zionism. 


"How could anyone regard 
these creatures as unclean?* 
we agreed. And, at a commu- 
nal supper, as we talked about 
the withdrawal from the Gaza 
Strip, the fall-off in Russian 
arms su p p l ies to Syria and the 
consequently predicted evacua- 
tion of the Golan Heights, 1 
gathered a further truth about 
Monism. 

Namely, that Zionism fa not 
strictly a nationalistic move- 
ment Patriotic, yes; but not 
nationalistic. Zionists have 
sought a space for Jews in 
which Jews can be Jewish 
without looking over their 
shoulders, a community in 
which Jews are. at last not a 
minority. To yield up the 


Golan Heights is not a m a t t er 
of national pride, but strategy. 
If it fa safe to do so. it can he 
done. What is important fa that 
farad - the notch - survives. 

Clues to its survival can be 
giepnad at a natural 

fortress monumentalised by 
one of the worth’s great mega- 
lomaniacs, occupied by fanat- 
ics and besieged by history’s 
most dedicated imperialists. 

Few archaeological sites 
match Masada for dramatic 
scenery and storyline. Looking 
down from the Herodian fast- 
ness from which Jewish zealots 
resisted Roman rule, one is 
morbidly entranced by the rel- 
ics of a terrible narrative. 

Ringed by copybook Roman 


encampments - all visible 
from above — and bombarded 
by siege engines, the zealote 
could do no mare than watch 
the Romans build an enormous 

par»hnn ramp up to their walls. 
On tba eve of the breach, they 

^mml Hwl TT^aqq SlUddfi. 

Why the Romans expended 
such effort to trap less than 
1,000 militant s is a question 
that still perplexes ancient his- 
torians. But modem Israelis 
see the paradigm clearly 
enough: recruits to the Armour 
Corps are sworn in at this site. 
The oath is hinged with 
implicit vengeance. " M as a da 
mustnener happen again." 

Most Zionists would admit 
that the zealots of Masada 
were, like their ultra-Orthodox 
counterparts today, the sort of 
Jews who would despise any 
secular state. But that does not 
prevent Masada from serving 
both as an emblem and as a 
cautionary metaphor for mod- 
em Israel 

Most Israelis know the site 
wriL and they are easy to dis- 
tinguish from other visitors: as 
some people carry mobile 
phones, so Israelis carry 
machine-guns. The very exca- 
vation of the site, 30 years ago. 
was an operation that owed 
more to military logistics the** 
archaeological expertise. And 
one does not have to travel 
veay far from Masada to join 
the ambience of virtual com- 
bat: checkpoints and barbed 
wire replace mudpack thera- 
pies as the litoral road along 
the Dead Sea gets closer to Pal- 
estinian Jericho. 

Other memorials in Israel 
may speed an impartial visitor 
more swiftly into sympathy 
with the Zionist cause but 
Masada put the seal on my 
conversion. 

Its strength as an epitome 
does not lie with the historical 
identity of those who occupied 
it fundamentalists, whether 
Jewish or Moslem, may yet 
wreck the state of Israel Nor 
can it be said to provide a pre- 
cedent for a Jewish state in 
this part of the world: 2,000 
years ago, "Judaea” was never 
a nation in the modem sense, 
and neither, ywno to that, was 
Palestine. 

What Masada stands for is 
the endurance of a culture. It 
fa, in archaeological form, a 
centre of gravity for whatever 
it is that defines Judaism, 
whatever that fa - an essence, 
a cement that unites people to 
fight for themselves. Those 
without such bonds wQl come 
away from old Masada, and 
new Israel with some relief, 
but more envy. 



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Sailing/Keith Wheatley 

Old money 
in Newport 

The New York Yacht Club is 150 

behold. The steep sloping 


N ewport 100 years 
ago was New York- 
by-the-sea. When 
hot, humid snnmier 
came, ftp affluent closed up 
tiie brownstone houses on 
Fifth or Mflrttenn and came to 
Rhode Island. 

Nothing much 2ms rhang Bil. 
least of an ftp fanny names. 
This week the New York Yacht 
C3nb has been celebrating its 
150th birthday (being the 
NYYC, of course, it has to be 
the bmgueknotting Sesquicenr 
tennial Regatta). When the 
result lists go up, a du Pout 
can be found next to a Double- 
day. 

As the yachts headed out 
into Naragansett Sound all the 
chatter and pointing was 
towards the yellow-painted 
house cm the headland. As a 
dynastic town Newport loves 
nothing better than a will, a nd 
Jackie Kennedy’s bad just been 
published. Hammersmith 
Farm, the seaside retreat 
where tiie young Jacqueline 
Bouvier spent her childhood 
riding ponies and sailing, cotwp 
to symbolise the Kennedy pres- 
ence in Newport 
After her marriage to John F 
Kennedy at St Mary’s Church, 
the wedding party was held at 
(his glorious pale yeDow man- 
sion overlooking the Atlantic. 
Once JFE became president, 
the house became the summer 
White House for the first 
family. 

Of course, it fa no more a 
farm than BiFnhpfm fa a coun- 
try rectory- That fa another 
quaint Newport custom. The 
Itahanate palaces out on Ocean 
Drive, built at the turn of the 
century for families such as 
Vanderbilt or Aster, are invari- 
ably known as “cottages". 
When probate was granted and 


“the farm" was left to step- 
brother Hugh Auchinloss, le 
tout Newport heaved a discreet 
collective sigh. The two Kenn- 
edy children had been 
bequeathed the other water- 
font property on: Martha's 
Vineyard SO miles away. That 
should keep the paparazzi out 
of town far anot h e r generation. 

As (he sporting home of the 
fabled America’s Cup for 100 
years or so, one might have 
supposed that Newport and the 
chib might have grown used to 
the media. After all Harold 
VanderbDt, racing Sir Thomas 
Upton for the oldest trophy in 
international c omp e titi on, was 
hardly low-profile, even in the 
1930s. 

Then, as now, the NYYC 
simply adopted a marvellous 
disdain- Journalists wanting to 
coves: titis week’s splendid and 
historic regatta were told that 
it was pri va te, “by invitation 
only”. Race results, numerical 
tables of times and handicaps 
with as much flavour as packet 
soup, would be available from 
a subfusc office in a shopping 
itwTT. 

Perhaps they should not 
have been so discreet When 
the dob let its hair down, the 
scenes were wondrous to 


lawns in front of Harbour 
Court, the waterfront mansion 
it calls home, became 
impromptu grass slides for 
younger crew and, after cock- 
tails, their parents. 

Many yachting enthusiasts 
from around the world were 
sharing (he magic of Newport 
far the first time. The NYYC 
had invited sailors from dubs 
such as the Royal Yacht 
Squadron, and. Royal Thames 
Yacht Club to came and race 
with them. 

“We've been almost a year 
building up to ftl« and 1 think 
its bloody marvdlons," said 
Mike Slade, a London property 
man and owner of Longotxtrda, 
one of the world’s top maxi 
yachts. 

If that sounds a lot of prepa- 
ration for a week’s sailing, con- 
suls* (hat the 80ft Longobarda 
sails with a crew of 24, a mix- 
ture of family, friends and pro- 
fessional racers. In her wake 
follows a baggage train of 
spare sails, ropes, and even, 
carbon fibre to repair the hull 
should it prove necessa r y. 

Surely Slade, who heads 
Helical Bar, fits into the classic 
definition of yacht-racing as 
tearing up £20 notes under a 


shower. 

Slade bristles, in his amiable 
way. "Ibis, believe it or not, is 
a business. She’s av ailable for 
major regattas at $50,000 a 
week and well do two, maybe 
three, charters (his year,” he 
sakL “R should cover the run- 
ning costs.” 

Next week Loagobarda sails 
for Australia and a customer 
who wants to race the Sydney- 
Hobart classic in December. 

BiS Koch, the US amateur 
sailor who won the America's 
Cup two years ago after an 
expenditure of treasure (hat 
startled even the battle-hard- 
ened, fa in Newport with two 
yachts and a cast of thousands. 
Next spring Koch defends the 
America’s Cap with an all- 
woman crew, a radical move 
that has shaken the NYYC,' 
who cannot quite make up 
their minds even about lady 
members. 

Thirty-four athletic women, 
ranging from top dinghy 
to Olympic rowers, are racing 
Koch's crack maxi MatadorZ. 
He had her brought out of stor- . 
age in Antibes especially. 

Koch hnmpw an engagingly 
diffident, self-deprecating indi- 
vidual and one ctf tie richest 
men m America, has brought a 
classic 12-metre, Kites Magic, 
over from New Zealand solely 
fin* the week. At the two rented 
crew houses a marquee has 
had to be erected to host din- 
ner for the crews, coaches, and 

hangers-on. 

“We won’t spend anything 
like we did in the last Cop,” 
said Koch, patting what he 
likes to (mil his $68m belt 
buckle. The logoed clip an his 
belt fa from the 1992 America3 
campaign: $68m was the net 
cost, after deducting sponsor- 
ship. 


FT Ski Expedition /Arnie Wilson 

Welcome snow 

innumerable splinter groups — 
at South America's biggest and 


Arnie Wilson and Lucy Dicker 
are trying to ski every day 
of 1994 on a round-the-world 
expedition. They are currently 
in South America. 

H eini Kempal was 
pleased to see the 
snow-laden clouds. 
The snow, he said, 
was desperately nee ded. The 
contrast between the rain-sod- 
den Gran Catedral of th e last 
few days and the same resort 
under snow was stark- 
Before the snow, the ski 
schools - five major ones and 


oldest ski area, near San 
Carlos de Bariloche, had been 
in disarray trying to cope with 
tbrtnssmtlK of s t udents an. COBCh 
toms from Buenos Aires. 

The tins bolas, or snowball 
throwers, flock to Argentina's 


ski areas in the school holi- 
days, and ride to the mountain- 
top to admire the view. “Nor- 
mally vre perauade quite a few 
to try gfrifng while they’re 
here, and many return the fol- 
lowing year cm a proper skiing 
holiday, " says Kempel director 
of the Rscnela Esqui Catedral 
the niam ski school at Chan 
Catedral 

But the weather has been a 
big problem: “We’ve been los- 
ing so much business,” he 
says- 

Brim, «na of the Argentine 
demonst ration team’s crack 
skiers, is a real fi nd. Hie leaps 
to his feet in restaurants and 
bars at the slightest query 


about technique and delivers 
an impassioned half-hour 
impromptu ski lesson. 

The Argentines have an 
impressive ski school pro- 
gramme, and he is not slow to 
criticise the Swiss and the 
French. 

This year we have skied with 
instructor s from 11 countries, 
all with different ideas about 
technique# 

With 50 runs, 82 lifts and a 
vertical drop of 3£8Qft, Baril- 
oche fa an excellent ski area. 
The planned new jumbo gondo- 
las, winrfri b igg er cable car 
(the present one hold* only 25) 
and two high-speed quad 
chairs should substantially 
improve it 

The resort’s first cable car 
sank to the bottom of the 
Atlantic after a cargo ship 
from Italy was sunk at the 
start of the second world war. 
They had to wait 11 years for a 
replacement 


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Motormg/Stnart Marshall 

A hot hatch 


W hy have a family 
hatchback that 
looks exactly 
what it is when 
you could have one, still with 
five doors and four seats, that 
could be taken for £30,000- 
worth of high performance 
coupfe? 

That fa the rationale behind 
Mazda’s new 328 which goes on 
sale in Britain on August 17, 
priced from £11,995 upwards. 

The launch of the 323 is 
another sign of Mazda’s deter- 
mination to become the chief 
niche marketeer in the world. 
It knows it mil never be a VW 
or Ford, Toyota or Elat in pro- 
duction volume so it fa aiming 
to fill gaps. 

Britain is the first European, 
country to get the new 323. For 
the time bring; there are just 
three models - a LShtre four- 
cylinder in GL and gt.y trim 
and a 2-litre V6 GLX Three- 
door hatchback and four-door 
saloon versions will follow 
later in the year wheat a L8- 
litre engine will also become 
available. 

There was a lot of design 
input into the new 323 from 
Mhzda’s research and develop- 
ment facility in Frankfort, as 
there had been earlier with the 
Xedos 6 and 9 models. The 
result fa that the 323 feels a 
thoroughly European car with 
all the finesse one expects of a 
Japanese product 
Mazda says its objective for 
the 323 was to combine sporti- 
ness with refinement, individu- 
ality with concern for safety 
jymi «wrif «nwiantal protection. 
Don’t they all say that nowa- 
days? Of course they da But, 
having sampled 323 festbacks 
with both engines, I can con- 
firm their sporty IwmdHwg and 
mechanical refinement As for 
their looks, I reckon nothing 
touches them in their class. 

I first drove the LSJitre GLX 
(£12£95). The eng in e , although 
smaller than Hw old 323*8 88 
horsepower L&fitre, fa slightly 
more muscular, producing a 
silky 90 horsepower at 
5,500rpm. Torque (pulling 
power at a given engine speed) 
is unchanged. The 1.5 GLX 
rode comfortably and 
demanded little gear changing 

in nriian aypac hmiHla l nfmhTy 
on country roads and cruised 
quietly an the motorway. 

Delicate controls, effortless 
power-assisted steering and 
minimal road-induced tyre 
noise made it a most relaxing 
car to travel in. The driving 
position was comfortable 


aitimn gh tall people of mature 
years may find both front and 
back seats on the low side for 
easy entry and, especially, 
egress. 

I rated the performance and 
acceleration more than ade- 
quate. Mazda claims a 108mph/ 
I74kph maxi mu id speed and 
(HSOmph (046fcph) acceleration 
in 1L9 seconds. Fuel consump- 
tion should be up to 36mpg 
(7.85 l/100km) in normal 
use. 

The 323 V6 1 tried next was a 
hotter property altogether, 
with 147 horsepower at 
SOOOrpm and wide SO series 
tyres on 16m alloy wheels. 

It fa much more expensive 
(£17,495), which puts it into 
VW Golf V6 territory. Top 
speed is a claimed 129mph 
(207kph), with 0-60mph 
(0-96kph) acceleration in 9.4 
seconds. Only uncharacteristi- 
cally light-footed owners 
should expect to see more than 
31mpg (9.1 yiOOkm). 

Naturally, it felt far more 
eager than the L5-Ktre 323 but 
- as usual - I preferred the 
gmallur en ginari car, which fo*? 

taller and more resilient 70 
series tyres cm lain wheels. 

Squat and sporty tyres 
increase cornering power and 
make for nervously responsive 
steering but they exact a com- 
fort penalty. Although it was 
fine on a smooth motorway, 
the VfTs ride was much more 
knobbly at low speeds and 
there was a lot of tyre roar on 
coarsely textured surfaces. 

All 323s have power-operated 
front windows, mirrors and 
radio aerial, a pollen filter and L' 
seatbelt pre-tensioners. Driv- $ 
eris and front passenger’s air- : 
bags are standard on the list ' /• 
GLX and 2.01 V6 but not on the . -.m 1 
L5l GL. A five-speed manual ^ 
gearbox fa standard an aR 3238r. -to 

Mazda says the boot has f 
class-leading volume but irag 
looked too narrow to pass my 
“two sets of golf dubs in thare gfc 
trolleys" test and has an except 
actually deep rear sfll Neither 
of which, I suspect, will dq ' 
anything to harm sales of this- 
most glamorous looking hatch- 
back. 


MOTORS 


JEMCA London' a 
Dttltr (ei ' 
T«l 081 70S 1888 


i-arooat 

LEXUS 




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XIV WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 30/JULY tt 1994 


★ 


BOOKS 


A dip into the well 
of Tory inspiration 

Patience is needed to draw on the true values of life, says Alan Clark 


Doorman to 
the modem 
world 


I am a real Tory. 1 was 
brought up op Henty. 
John Buchan and Jane's 
Fighting Ships. I 
believe, not assertively 
but in a relaxed and natural 
way that my country is the 
best, the most congenial place 
to live, the land whose preser- 
vation is worth any sacrifice. 

This attitude, and the sense 
of decorum that goes with it, 
was devastated by the Great 
War. It survived into the 1930s 
(when at the age of six I read 
my first “book'’ - in popular 
parlance the term now denotes 
a soft-bound comic - King Sol- 
omon's Mines) only in reflex, 
and was all bat demolished by 
the great Labour landslide of 
1945. 

The Conservative Party did 
not just "adapt"; it changed 
practically everything except 
its name. Through Macmillan's 
soft-optioneering. Heath’s bal- 
ance-sheet corporatism to 
Thatcher’s "market" brutality-. 

So what are we? We can 
always buy an “image", I sup- 
pose, from a good PR firm. And 
keep them on a retainer to 
tune and burnish it. But with 
loss of identity- comes loss of 
confidence, then loss of nerve 
(and if you do not believe this 
just watch what happens to the 
Labour Party over the next 
couple of years). 


Yet now a wonderful book 
has appeared, which, illumi- 
nates our Party from an 
unusual angle. There is barely 
one word of politics in the text 
- but the combination of his- 
tory, aesthetics and scholar- 
ship provide a deep well from 
which real Tories can draw 
inspiration. 

The essential theme is a 
recurrent one. With. England 
seen as a noble estate, and the 
landed interest in general as 
its ancient defenders, the 
image of a country house amid 
old plantations and well man- 
aged farms easily comes to 
convey a wide range of senti- 
mental and political meaning. 
It seems to represent the real 
England, besieged by ugly, 
alien and inhuman forces of 
change. The traditional coun- 
try house can be portrayed as 
an ancient centre of order, cul- 


tivation and disinterestedness. 

Nigel Everett illustrates this 
thesis by drawing on the writ- 
ings - fiction as well as 
records and surveys - of suc- 
cessive periods as well as the 
art, the paintings, the architec- 
ture and the gardens. He never 
proselytises. Indeed, it is not 
always certain which "side" he 
is on. All the better. The reader 
has to think, make his own 
judgments, which in the very 
nature of things, alter as the 
evidence accumulates. 

There is a permanent ten- 
sion, between the ancient tra- 
ditions and their benign stabil- 
ity, and the ever present threat 
of degradation. Human greed, 
"short-term ism", the strong 
exploiting the weak beyond 
endurance, are pollutants 
every bit as damaging as an 
overdose of nitrates. 

Take this verity: “Old 


England - slow, dignified, 
shaded, and beautiful with the 
public wandering freely 
through a variety of land- 
scapes - has given way to the 
modern world of assertive pri- 
vacy, ugliness and tension". 


THE TORY VIEW OF 
LANDSCAPE 
by Nigel Everett 

Yale L'niverniy Press £35. 
54. H pages 


How true this is of practi- 
cally anywhere in the south- 
east today. “Modern World"? 
You mean nose- to- tail traffic. 
Wimpy bars, police sirens, 
ghetto-blasters, farm shops 
selling “early” potatoes flown 
in from Cyprus? Well. no. This 
passage is a commentary on 
Humphrey Repton’s illustrated 
notebook, published in 1792. 


when we were congratulating 
ourselves that the social har- 
mony of our own kingdom was 
preserving us hum the horrors 

of the jacquerie. 

And there are other precur- 
sors. Here is Adam Smith (but 
I doub: if the wording is either 
familiar or congenial to the 
existing membership of that 
■'institute'’ which bears his 
camel: “A profitable specula- 
tion is presented as a public 
good because growth wifi stim- 
ulate demand, and everywhere 
diffuse comfort and improve- 
ment. No patriot or man of 
feeling could therefore oppose 
it <But i the nature of this 
growth, in opposition, for 
example to older ideas such as 
cultivation, is that it is at once 
undirected and infinitely self- 
generating in the endless 
demand for all the useless 
thin gs in the world . . 


As early as 1830 Cobbett was 
remarking that the (peasant) 
labourer was "... more com* 
fortable where there are 
woods, forests and wild places, 
hedges commons and grassy 
lanes. His situation is at its 
worst where there ore areas of 
high fertility devoted almost 
entirely to com". 

There are dork passages, it is 
true, in the history of Conser- 
vative magistracy- And none 
more terrible than the High- 
land clearances whose evi- 
dence in Sutherland, even to 
this day. can be seen in the 
pleasing homesteads, idylli- 
caliy situated at the water's 
edge, burned by fire often 
started when the crofters' fami- 
lies were still inside, by the 
Dukes' militia. 

But in the main our country 
was uniquely favoured in the 
temperate nature of its cli- 
mate, its constitution, its man- 
ners. and its agriculturally 
based wealth. Comfort coin- 
cided with virtue, beauty, lib- 
erty. and easy social relations. 

Tories (real Tories) can still 
draw encouragement from this. 
It remains a basic truth, deeply 
implanted in the subconscious 
of very many of our people. 
But if we are to draw full 
advantage therefrom we do 
need at times great patience - 
mirroring that of Nature her- 
self. 


W e read for man)' 
reasons, most of 
them not very 
lofty. Among the 
more significant are these two: 
that we need to understand 
ourselves, and to know our 
world. With the exception of 
Barbara Cnrtland-style pulp, 
most books do something for 
us in one or other direction. 
Great literature is great 
because it does much in both. 

But great literature does not 
come off the presses every day. 
We could survive on a diet of 
mere competence - novels a 
shade thin; poetry a touch too 
strained - but our usual 
resource is to return to the 
classics, which have that sta- 
tus because they satisfy us 
richly. 

There is however another 
resource, and it constitutes the 
most rapidly growing literary 
genre of the 20th century: biog- 
raphy. Biography fully meets 
the two needs noted, satisfying 
them through our curiosity 


GALILEO: A LIFE 

by James Rest on Jnr 

Cassell £18.9*. 319 pages 


about the lives, times and cir- 
cumstances of our fellows. It is 
as essential human trait to 
gossip, to eavesdrop, spy and 
pry. and it is essential because 
without it none of us could be 
fully human or social. The only 
way we have of interpreting 
ourselves and others, and 
therefore of finding our way 
through the vast fabric of rela- 
tionships that constitutes the 
social world, is to be primed 
with insight into human 
nature and its variety. Gossip 
is vital; literature, biography 
and history are gossip writ 
large: we therefore cannot live 
without them. 

Anyone's life is interesting, 
even that of a village Hampden 
in a sequestered vale. But to 
read about great lives, lives 
which change the world. Is to 
get not just biography but his- 
tory. Galileo Galilei’s life is his- 
toric in just this way. If any 
one man acted as doorman to 
the modern world, he has an 
excellent claim to the title. In 
tins readable, characteristic 
example of the American style 
in popular biography. James 
Reston takes us through Gali- 
leo’s tale, hooking it firmly to 
events in the contemporary 
world: the flight of the space- 
craft Galileo to Jupiter, still 
taking place as this is written, 
and the decision of the Vatican 
in 1992 to acknowledge its fault 
in ill -treating Galileo three and 
a half centuries ago. by drag- 
ging him before the Inquisi- 
tion, humiliating and imprison- 
ing Virm 

Indeed Galileo’s story is a 
microcosm of the epic struggle 
between science and religion. 


Galileo was inquisitive, inven- 
tive, mathematically adept. He 
was fascinated by the view 
above him in the dear Italian 
night sky. He perfected the 
telescope, and terrified the 
church by revealing more stars 
than had been guessed before, 
hitherto unseen satellites orbit- 
ing other planets, valleys and 
mountains on the surface of 
our moon. 

Because scripture taught 
that the earth sits immovably 
in the centre of the universe, 
whose celestial spheres are 
driven round by angels, the 
church could not tolerate this 
new vertiginous cosmology, ft 
threatened their authority. By 
threats and intimidation. Pope 
Urban VIH forced Galileo to 
recant his espousal of the 
Copemican system. That the 
church should only come to its 
own recantation In 1992 speaks 
volumes about the conflict of 
faith and reason. 

Galileo was the son of a 
court musician who made 
some of the earliest experi- 
ments in opera. Galilei pdre 
had his son educated at the 
famous abbey of Vallombrosa. 
and then reamed him from a 
desire to remain there as a 
monk. As ever with fathers, he 
wished Galileo to follow a pro- 
fession. and enrolled him at 
Pisa University to study medi- 
cine. But Galileo's heart lay in 
mathematics. By persistence 
and chutzpah he secured a lec- 
tureship first at Pisa and then 
at the more prestigious Padua 
University, and launched him- 
self mi his razor-edge dance of 
danger with the Inquisition. 

G alileo not only 
made discoveries of 
the first impor- 
tance in astronomy 
and physics - especially in the 
laws of motion, thus breaking 
the stranglehold of Aristotelian 
ideas - but he was also an 
inventive genius. He- devised 
pendulums far docks, ways of 
improving telescopes. Instru- 
ments for measuring pulse-rate 
and temperature. His tele- 
scopic discoveries made him an 
international star; despite dis- 
grace by the Inquisition be had 
correspondents and visitors 
from all over Europe, including 
among the latter Thomas 
Hobbes and John Milton - who 
set the fallen Lucifer's realm in 
a Tuscan landscape. All this is 
told in easy style by Reston. 
who is a novelist as well as a 
biographer, and uses those 
techniques to recreate mood 
and circumstance. Most of the 
many books about Galileo are 
not quite so pool-side as this, 
being more scholarly and phil- 
osophical; which is a reason 
for welcoming Reston’s offer- 
ing, as a pleasant introduction 
to an important life. 

A.C. Grayling 



Fiction/Joan Smith 

Suitable cases for dramatic treatment 


E laine Fei nstein’s last 
novel. Loving Brecht, 
was a delicate, 
low-key evocation of 
a city, Berlin, in a period of 
turmoil. It approached its sub- 
ject glancingly, telling the 
story of tbe playwright Bertolt 
Brecht through the eyes of a 
nightclub singer who had a 
long affair with him. Fein- 
stein’s new novel, Dr&vners. is 
also about a city, this time 
19th-century Vienna. It is 
more obviously historical, 
opening like an old Hollywood 
movie with tbe announcement 
of a date - 1848, year of revo- 
lutions - which tells us what 
kind of narrative to expect. 

This is followed by a piece of 
celluloid scene-setting, a por- 
tentous authorial announce- 


ment which cries out for 
accompanying martial music: 
“It was a February morning in 
Vienna. Tbe wind was blowing 
savagely from the east and a 
little snow was settling on the 
domes of green and bronze in 
the First District". From this 
panoramic view, Felnstein 
sweeps down to focus first on 
tbe houses, cake shops and 
coffee houses of the rich, then 
on the servants who are hard 
at work ministering to them. 

These cinematic techniques 


are used throughout the book, 
cutting abruptly from tbe 
grandest of town houses to the 
garrets of the poor, from noisy 
crowd scenes to a child’s 
deathbed. Most of Felnstein ’s 
characters are Jewish and her 
ambitious aim is to plot their 
struggle to survive and pros- 
per as Metternich is over- 
thrown and a new, more lib- 
eral order seems to be in the 
making in Austria. 

Unfortunately, Dreamers has 
more than technique in com- 


DREAMERS 

by Elaine Feinstein 

Macmillan £15.99. 

33 9 pages 


mon with the Hollywood cos- 
tume dramas of the 1930s and 
’40s. People rush in and out 
making terse announcements: 
“Revolution in Paris. Barri- 
cades have gone np in tbe 
streets. Royal troops have 
fired on the crowd.” 


CONSEQUENCES 

by Helen Muir 

Simon & Schuster £15.99. 
231 page* 


The chief characters are a 
lovely but mysterious orphan, 
Clara, who cannot remember 
her origins; a child prodigy, 
Joseph, whose talent in 
playing the violin elevates him 
to international stardom; and 
Anton, the literary, left-lean- 


ing son of a fabulously 
wealthy banker. The novel 
spans 16 years of their lives 
without ever really bringing 
them alive as they move on 
and off Feinstein’s richly-deco- 
rated sets like pretty, lovingly- 
crafted puppets. 

Helen Muir’s novel is con- 
structed not like a Hollywood 
costume drama hot a TV soap 
opera. Its characters are as 
unlikely as those in Dreamers-, 
and its title. Consequences, 
suggests that they are all tak- 


ing part in an elaborate com- 
edy of manners. 

Muir is best at dialogue, 
especially the jerky speech of a 
woman who has summoned up 
the courage to call a man who 
might not be interested in her. 
“Hello. I wondered how you 
were. Yon . . . yon said yon 
were going to ring me but you 
haven't You sound a bit muf- 
fled at your end. Can you hear 
me? Have yon got somebody 
there?" 

Most of the characters meet 


at a ghastly singles club off 
the Cromwell Road, the men 
looking for sex and the women 
seeking something more 
romantic. Yet the novel cannot 
decide whether its keynote is 
fans or pathos, cruelly guying 
a character on one page and a 
moment later soliciting sym- 
pathy on his or her behalf. 

Much of the plot steins from 
an incident at the clnb in 
which Leonard, a narcoleptic 
cartoon animator, tramples on 
his dancing partner, an over- 
dressed blonde in grey lam£ 
who turns out to be a captain 
in the Life Guards. These are 
easy targets and K is a pity 
that Muir has settled for belly 
laughs rather than something 
which might really engage 
readers* hearts. 


T hree years ago 
Andrew Roberts 
made his mark as a 
historian with his 
admirable biography of Lord 
Halifax, the man who very 
nearly became Britain’s war- 
time prime minister instead of 
Winston ChurchflL He Is cur- 
rently writing a much-needed 
new biography of Lord Salis- 
bury. Meanwhile, he has pro- 
duced a pot-stirrer which 
should help keep his name in 
lights. 

Eminent Churchillians is 
modelled on Lytton Strachey's 
Eminent Victorians, first pub- 
lished in 1918, and Roberts 
fully acknowledges the debt. 
Strachey introduced a new 
form of biographical writing; 
subjective, selective and short, 
and by no means wholly depen- 
dent on narrative. In his own 
words, he sought “a brevity 




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Soft targets of recent history 

Malcolm Rutherford suggests that this biographer is simply sniping at easy meat 


which excludes everything 
that is redundant and nothing 
that is significant". He could 
praise as well as blame. 

Roberts has many of the 
same qualities: incisive use of 
quotations, telling anecdotes 
and acquaintance with out of 
the way sources, especially dia- 
ries. Yet there is one huge dif- 
ference. There was recognisa- 
bly a Victorian era; there was 
no such thing as a recognisa- 
bly Churchfllian era. 

Churchill was a man who. 
had it not been for the second 
world war, would have gone 
down as a political failure. 
Even then, he was defeated In 
the general election of 1945. 
When he came back in 1951. it 
was fairly well known that - to 
put it mildly - he was too old 
for the job. To call all that the 
Churchfllian era is stretching 
historical licence. Much of the 
period might as well have been 
called the coalition era or even 
the Attlee era, which then led 


quite naturally to Butskellism: 
"wartime’* and “postwar" are 
the simplest terms of alL The 
insistence that there was some- 
thing distinctly Churchfllian 
mars the book. 

There is another fault. 
Roberts poses as a radical revi- 
sionist and. had he written 20 
years ago. perhaps he would 
have been. In fact, he speci- 
alises in soft targets; King 
George VL Lord Mountbatten, 
Sir Walter Monckton and Sir 
Arthur Bryant. I have not 
come across anyone for at least 
15 years who regards any mem- 
ber of that quartet with uncrit- 
ical admiration. 

Roberts treats the king rela- 
tively gently, more sniping 
than shooting. He accuses him 
of naivete and writing a 
“fourth-form geography essay” 
after a meeting with Roosevelt. 
Yet if we have a hereditary 
monarchy, it is unreasonable 
to expect that they will all take 
firsts at Cambridge. The royal 


family's move to keep most of 
the dethroned sovereigns of 
Europe out of Britain - critic- 
ised by Roberts - seems rather 
astute. 

Despite the fact that he was 


EMINENT 
CHURCHILLIANS 
by Andrew Roberts 

Weidenfeld & Nlcohon £50. 
354 pages 


at least as much an Attlee man 
as a Churchfllian. Mountbatten 
receives 80 pages. His vanity 
and care for his own reputa- 
tion are undisputed. Yet, as 
Roberts writes, ultimately that 
reputation must stand on bis 
record as the last Viceroy of 
India. Roberts condemns him 
for his acceleration of indepen- 
dence and partition. 

Others will reach their own 
judgments. Despite the vio- 
lence. it still seems one of the 
wisest decisions by tbe post- 


war British government [i.e. 
not by Mountbatten alone). 
One might look (as Roberts 
does not} at how other Euro- 
pean countries tried to defend 
their overseas possessions 
after the time to leave: in 
France there was near civil 
war. Roberts appears to think 
that if Britain had stayed in 
India longer, and used air 
power to quell local difficul- 
ties. it might have been possi- 
ble to impose democracy on 
the British parts of Africa. 

Still, all that is hypothetical. 
The Roberts case against Wal- 
ter Monckton is that he was 
too much of a charmer. As 
minister of labour, be always 
sought to resolve industrial 
disputes by splitting the differ- 
ence between the employers’ 
offer and the unions’ demands. 
That is frue. but was very 
much the climate of the time. 
Monckton’s successor was Iain 
Marieod; he regarded Monck- 
ton as a hero. No-one then 


thought of trade union reforms 
d la Thatcher, just as (unmen- 
tioned by Roberts) no-one 
thought of Britain joining the 
Original Common Market. 

Arthur Bryant, as a fellow 
historian, is easy meat. Roberts 
tells the story of how close 
Bryant was to fascism right up 
to the war. There was a serious 
move to have him interned, 
but another historian, the now 
Lord Dacre, advised the 
authorities not to worry 
because Bryant would “change 
with the times", which he duly 
did. 

The Dacre story Is one of the 
best in the book. There is some 
other political tittle-tattle of 
the land that will be enjoyed 
by those who like the diaries of 
Chips Channon and Alan 
Clark. But there is also a nasty 
streak. Historians should not 
seek to get away with state- 
ments like "Murphy was an 
active homosexual and 
extreme left-winger" without 



some elucidation, and the 
claim that Rah Butler's move 
to the Board of Education was 
the “wartime political equiva- 
lent of Port Stanley" reminds 
one of Lord Tebbit's recent 
remark that being president of 
the European Commission is 


like being chairman of Basing* 
toke Council. Indeed there is a 
touch of Tebbit - “the semi 
house-trained polecat” as Mich- 
ael Foot called him - through- 
out Eminent ChurctnQicms- On 
to Salisbury before It becomes 
catching. 






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FINANCIAL TIMES WEEKEND JULY 30/JULY 3 1 1994 


WEEKEND FT XV 


ARTS 


Worl d 'f 


EV- 


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Oddities in demand 


M 



In a difficult year for the salerooms — as stock markets 
plummeted just before important auctions took place — 
Antony Thorncroft senses some optimism in the air 


s 


Maharana Jagat Singh (1734-1751) riding an elephant while smoking a hookah, Udiapnr, 1740: one of the Indian 
miniatures from the British Rail Pension Fund collection, which Sotheby’s sold for a total of almost £500,000 in 
ApriL The fund remains one of the most successful investments in the' art market 


o it is steady as she goes. 
This week the leading 
auction houses totted up 
their takings for the 
season and cheered 
themselves up - just. Sales at 
Sotheby's were 19 per cent higher at 
£9lSm, while Christie's managed a 
14 per cent lift to £781m. In dollar 
terms the results were not quite so 
impressive (rises of 15 per cent and 
11 per cent respectively), and these 
days the big salerooms think in 
dollars. But they are entitled to put 
the best gloss possible on what has 
been a mildly encouraging year. 

As Sotheby's president DeDe 
Brooks says “The best we could 
hope for was a good strong climb 
back. If we could grow by this rate 
every year we would be ecstatic. 
We’ve had some wonderful goods 
last season but prices have not 
moved much". 

Sales might still be less than half 
the level achieved in the annus 
mirabilis of 1989-90 (when will 
Sotheby's match the $3.2b it 
recorded then?) but at least the 
worst is definitely over. A year ago 
the auction houses expected trade 
to pick up faster than it has. but 
they were basically very unlucky 
over the timing of their biggest 
auctions of the season, the 
important Impressionist and 
Modern picture sales in New York 
and London in May and June. 

The autumn sales in the sector 
had been encouraging, with 
Sotheby's recording what turned 
out to be the highest price paid 
during the season of $13.75m 
(£9. 34m) for one of Matisse's 
experimental cut outs. Their 
success lured on. to the market 
some good - as well as some flashy 
and well hawked - pictures, which 
Sotheby's and Christie's fought over 
with all the cut-throat intensity 
that characterised the hyped up 
market of the late 1980s. TO secure 
works by Monet, Gauguin, Sisley 
and Cdzanne Christie’s in New York 
gave the heirs of the late Neil 
McConnell a non-refundable 
advance in the region of Rim. 

Unfortunately the stock markets 
in New York and London went into 
free fall just before both sets of 
auctions. The super rich caught 


fright and decided they could live 
without art. Christie's received the 
coldest blast and its sales were very 
disappointing. It failed to recoup its 
gamble on the McConnell pictures 
and presumably still has an nnsnlri 
Cezanne in Its strong room. 

Sotheby's managed to get away 
its two major works in London, 
paintings by Manet and Monet, for 
£4.4m and £4£m, and could claim a 
success. But this is still a weak 
market. In the late 1980s the auction 
houses raced ahead by selling 
Impressionist and modern art at 
ever rising prices (to a peak of 
$£L5m for a Van Gogh), usually to 
the Japanese. This sector accounted 


helped raise Phillips turnover by 
12.5 per cent in 1993-94 to £S8m. 

But the real star among the 
medium-sized auction houses was 
Christie's South Kensington which 
added 28 per cent to its turnover, 
weighing in with an impressive 
£50m. There were its usual 
idiosyncratic records - £39,600 for a 
camera (although it was gold 
plated); £203,500 for a car number 
plate. Kl NGS; and £22,100 for a 
Walt Disney poster. 

Competition is becoming intense 
in this sector. This week Bonhams, 
which had another excellent year 
with a 21 per cent jump in sales to 
almost £34m, raised its charge to 


The most surprising price of the season 
was the £7. 7m paid at Christie* s for 
part of a 7th century BC Assyrian 
relief ignored for decades on the wall 
of the tuck shop in Canford School 


for over half their turnover. It now 
contributes nearer a quarter, and 
there are some doubts as to 
whether Impressionist paintings 
will return to the levels of 1989-90 
for a decade. 

Fortunately there will always be 
people who buy art because they 
love it, and they have become more 
active again in the past year. The 
prices that sellers were prepared to 
accept (or that were forced on them 
by auction houses desperate to 
boost sales) came into balance with 
the selective purees of potential 
buyers. 

The feature of the season was the 
brisk trade in low and medium 
priced antiques. After all, the 
economy is improving; there is a 
great deal of money around in the 
City and elsewhere; and there is 
little attraction in storing it away at 
low interest rates. Lloyds is still not 
a major factor in bringing goods on 
to the market, although Phillips 
was helped by a spate of bouse sales 
when families sold up to meet tax 
demands. Such auctions invariably 
exceed their estimates and they 


buyers from 10 to 15 per cent of the 
hammer price, the same level as 
Sotheby's and Christie's. It has been 
forced to do so because its rivals are 
involved in a price war when 
pitching to sellers, cutting their 
charges from the traditional 10 per 
cent premium in their keenness to 
secure goods for sale. Bo nhams was 
losing out and reckons it must be 
more flexible in its terms for sellers 
if it is to continue to grow. 

Along with the malaise in 
post-1870 art (and to a lesser extent 
among Old Masters which have 
become a tricky market, despite the 
remarkable £4J2m paid at Sotheby's 
for a landscape by the Dutch 17th 
century artist Aelbert Cuyp), and 
the improving demand below the 
£10,000 a lot leveL there were three 
other noteworthy features to the 
season - the strong demand for 
furniture; the premium carried by 
anything odd and exceptional; and 
the growing importance of South 
East Asia to the future of the art 
market 

Unlike pictures, furniture is 
essential to life, so why not buy 


antique examples which can be 
cheaper than contemporary and 
have a tradition of holding, or 
increasing, in value? This message 
has got home, not least among 
recipients of City bonuses. 
Christie’s furniture sales were up -H 
per cent last season, with record 
prices set for pieces designed by 
Chippendale and Charles Rennie 
Mackintosh. 

If recent buyers of post-lSIi* art 
are licking their wounds there 
always seems to be bidders for 
unusual masterpieces. The most 
surprising price of the season was 
the £7.7m paid at Christie's fur port 
of an Assyrian relief of the ?tb 
century BC which had lain ignored 
for decades at Canford School. 
Equally bizarre was the £441,500 
paid for a 12th century carved 
“unicom" horn. Less surprising 
perhaps was the record £2.4m which 
secured a bronze lion from Moorish 
Spain, a record for any Islamic 
work of art. Sotheby's secured a 
record of £188,500 for it 20th century 
doll and £276.000 for a Purcell 
manuscript 

Christie's, and to a lesser extent. 
Sotheby's, are looking towards 
South East Asia to proride the next 
major boost in the increasingty 
intemational art market. Its chief 
executive Christopher Davidge 
reckons that already up to 15 per 
cent of its turnover comes from 
collectors there, and he anticipates 
holding auctions in China within 
five years. With Its dynamic 
economy and the world's longest 
tradition of appreciating works of 
art, China could become the driving 
force of the market by the first 
decade of the next millennium. 

At the moment the mainland 
Chinese are interested primarily in 
stamps, jewellery , watches, jade, 
and Chinese paintings. If they 
follow the pattern of the Chinese of 
Hong Kong. Singapore and Taiwan, 
oriental ceramics and bronzes 
should be next on their collecting 
list A taste for Impressionist art, to 
say nothing of Old Masters, may 
take a generation to develop, but in 
the meantime the auction houses 
will be doing everything in their 
power to speed up the process. 


Pop ‘Establishment’ 
left out in the cold 

The Mercury Prize is likely to raise some hackles 
in the music industry, says Antony Thorncroft 


W hat would we do 
without arts 
prizes? The 
Turner gets the 
conceptualists and the painters 
at each other’s throats and the 
Booker sets post-modernists 
against readers. And now the 
Mercury Prize for the British 
pop album of the year is shap- 
ing up nicely to make many 
music people very cross. This 
is the third year in which ten 
albums have been short listed 
by "experts" to compete for 
£35.000 - and a barrage of pro- 
motional opportunities. 

Inevitably the award goes to 
a band that hardly needs it - 
last year Suede generously 
gave the money away, 
although, like the 1992 winner 
Primal Scream, it probably 
expected a bigger career boost 
from the prize than actually 
happened. This year's ten 
albums suggest the careful mix 
and match of a finely balanced 
committee. There is a represen- 
tative from most of the myriad 
faces of pop - except one. 

There is no room for the 
Establishment. Albums by the 
Rolling Stones, Elvis Costello 
and Kate Bush made the final 
20, and then stalled. Pink 
Floyd failed to get even that 
far. The Mercury is obviously 
going in for a bit erf proselytis- 
ing, for the shock of the new. 
but in the most balanced way. 

So what is mi offer? The only 
big name listed is Paul Weller 
who, with Wild Wood, has con- 
tributed the whimsical hippy 
album. This is wliat happens to 
abrasive young punkers when 
tile pop business gets to them, 
especially in the wallet. The 


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lyrics go nowhere, slowly, and 
the melodies come packaged 
from some Californian dream 
factory. What a contrast this is 
to the punk aihum on the list, 
from the Ulster band Therapy. 
Troublegum hits you like a 
sledgehammer, and does not 
loosen its grip through a wel- 
ter of songs which are almost a 
parody of life seen from the 
gutter. So much youthful 
angst, so much raw energy and 
power - it is as stimulating as 
Weller is soporific. 

The inevitable black soul 
entry this year is Shara Nelson 
with What Silence Knows. She 
has more genuine emotion 
than last year’s representative 
of this form, Dina Carroll, and 
seems equally happy with the 
heart-tom ballad and the old 
fashioned disco whirl. 

This is much easier listening 
that the pseudoclassical con- 
testant, Michael Nyman's The 
Piano Concerto which shares 
the CD with 7X3 V. his pean to 
the French express train. 
Nyman takes a tiny little tune 
and adds layer after layer of 
sound, breaking the back of 
the simple melody. The Piano 
Concerto was originally the 
soundtrack of Jane Campion’s 
movie The Piano and has that 
unneccessary. background, feel 
to it. 

There must be an album to 
keep the largest sector of the 
pop buying public, young girls, 
happy, and naturally Take 
That’s Everything Changes 
makes the top ten. Gary Bar- 
low’ writes some very infec- 
tious songs: indeed the band is 
much better than its hunk 
poster image, and if Take That 
are very clever they could 
avoid the inevitable three year 
life span that dogs pretty boy 
bands and become a serious 
music making machine. 

Old rockers will like Ian 
McNabb's Head Like a Rock, 
which keeps the Bruce Spring- 
steen tradition alive. Little sur- 
prise that it was recorded in 
LA with Neil Young's backing 
band. Crazy Horse. With its 
crashing elands and harmoni- 
ous melodies, this will restore 
the faith of jaded 30 year olds 
in the redemptive power of 
pop. 

Naturally there has to be a 
“British" pop album and what 
better than Blur's Park-life. 
This is how todays youth likes 


to see itself; urban, street wise, 
funky, and basically light 
hearted. There is something of 
Madness, something of Squeeze 
in this generous hotchpotch of 
16 songs. It is slightly too 
sharp for its own naivety, but 
anyone wanting a musical 
commentary on Major's Britain 
could hardly do better. 

When the young are not 
being cheeky they are dancing, 
and the three dance albums 
included once again neatly 
cover the musical range. 
His 'n 'hers by Pulp is what 
might happen at a suburban 
diso when filtered through the 
ears of an imaginative specta- 
tor; Music for the Jilted Genera- 
turn by The Prodigy is hard 
core techno rave, pretty unre- 
lieved, insistent, body jerking, 
stuff; and M -People’s Elegant 
Shimming is the type of disco 
music loved both by inveterate 
clubbers and the Christmas 
office party crowd. 

T o build up more 

excitement before the 
announcement on 
September 13, the 
organisers of the Mercury 
Prize have persuaded William 
Hill to give odds on the contes- 
tants. Blur is favourite at 2-1, 
with Take That at 7-2. My 
choice would be M-People (5-1), 
not because it is likely to win - 
it is too light heartedly predict- 
able to carry weight with the 
judges - but because it has aU 
the virtues of good pop: imme- 
diate accessibility, a wonderful 
beat, and insidiously memora- 
ble melodies. Yon recognise 
such hit singles from it as 
"One Night in Heaven” and 
"Moving on Up” from their 
opening bars because they are 
the songs that are played in 
the boutiques, the hairdress- 
ers. the sounds of the agie. 

The Mercury Prize helps to 
give the chaotic pop world 
some shape and substance but 
it still seems to skim the sur- 
face of the art form. No regrets 
at the failure of dreary, one 
dimensional, rappers to ma ke 
the list, but why no jazz, cur- 
rently enjoying yet another 
revival; or big band biues; or 
country? Still the sampler. , 
which includes a track from 
each album, should be cut in 
the next two weeks, ar.a gives 
an instant run-down on the 
current state of British pop. 


S culptural horses frozen 
in mid-gallop hover 
above the stage; two 
huge gilded frames 
turn the action into a picture - 
one empty, the other contain- 
ing a transparent mirror where 
characters can see themselves 
and through which others can 
loom. Is someone recalling the 
famous, or infamous, BNO 
Masked Bad? Designer Peter J. 
Davidson is certainly an old 
opera hand. But despite these 
visual echoes. Jonathan Kent's 
production of Corneille's Le 
Cid at the National Theatre’s 
Cottesloe comes up with noth- 
ing so revolutionary. 

The French Classical theatre 
is notoriously hard to bring off 
in English. “Le style, e’est 
tout,” and that’s the trouble. 
Even replacing the six-beat 
alexandrine with the tradi- 
tional English pentameter 
leaves us with the problem of 
rhyme. We associate rhyming 
couplets with pantomime, with 
facetiousness, the intentionally 
frivolous and unintentionally 
bathetic. Of course, there are 
some successful translations, 
notably in Moli&re and ver- 
sions of Corneille by Ranjit 
Bolt. Bolt provides the transla- 
tion for this Cid, much of it 
good, no-nonsense rhyming 
pentameters, getting over the 
nitty-gritty of the love-versus- 
duty plot Some rhymes have a 
period flexibility (“pur- 
suit/driven to't"), some are 
more strained ("by it/right"). 
Some have the fetal ring of a 
McGonagal: “Two kings were 
captured on a single day/Noth- 
ing could stand in the young 
hero's way." But surely not on 
the banks of the silvery Tay. 

More interestingly, and per- 
haps disturbingly. Bolt has 
compromised with the English 
sense of the ridiculous. Where 
the French grand siicle pos- 
tures, preens and poses, 
En glish theatre cultivates the 
pragmatic. Le Cid portrays the 
an girishori application of a code 
of honour unstoppably 
unleashed when the father of 
our hero is mortally insulted 
by the father of the hero's 
betrothed. A blood feud 
results. Rodrigo (the Cid) kills 
his future father-in-law which 
miffs his fiancee Ximena no 
end. She in turn demands ven- 
geance though she still adores 
him En glish couplets certainly 
deflate the pomposity but 
reduce the nobly eloquent pro- 
tagonists to the level of garru- 
lous mafiosi caught up in a 
mindlessly murderous tit-for- 
:a: to be terminated when 
nanny bangs their heads 
together. 

Bolt seeks to suspend our 
disbelief, perhaps simply to 
keep our interest, by introduc- 
ing a sardonic element of - 
could it be? - mockery in the 
figure of the Castilian king. 


Codes of honour 
put to the test 

Martin Hoyle reviews ‘Le Cid’ at the Cottesloe 


whom Bernard Lloyd plays 
disastrously welL Urbane, 
witty, dry, fatally gifted with 
common sense, he gently ends 
the giddy vortex of honour- 
bound vengefulness that the 
ranting Ximena and the sor- 
rowful Cid are caught up in, 
even using the word "point- 


less" of the characters' guiding 
principles. The trouble is that 
once you think about it in 
these terms it undermines the 
whole previous 100 minutes . . . 

Kent’s production, on the 
other hand, initia ll y takes the 
piece seriously, inspiring some 
stately tableaux in Mark Hen- 


derson’s dramatically dimming 
lighting and good romantic 
playing from the cast In the 
title-role Duncan Bell looks 
every inch and sounds every 
diphthong the young gallant 
torn between love and a code 
of behaviour that makes politi- 
cal correctness look like Lib- 



erty HalL Susan Lynch is a 
promising if coarse-grained 
Ximena: strong, rather tough, 
featured, she tends to yell at 
moments of stress. Crudeness 
of attack, for from adding to 
the very real intensity she gen- 
erates, merely leaves one wish- 
ing for tighter control and dis- 
cipline. Translation and 
possibly production seem to 
resign themselves to audience 
laughter at Ximena’ s bull-in-a- 
china-shop love-and-death emo- 
tionalism. The nice indication 
of her hysteria, when she 
refers to the sword of the Cid's 
opponent as “still bloody” gets 
overlooked in the general con- 
viction that she is almost off 
her rocker. It may be one way 
to express Corneille's dramatic 
vibrancy to a sceptical British 
audience, but 1 wonder 
whether it is the right one. 

Costumed as for Spain's 
Golden Age (Philip fl going on 
Cervantes), the company do 
their best with actresses as dis- 
tinguished as Faith Brook and 
June Watson looking con- 
cerned as confidantes. As the 
squabbling fathers who trigger 
the tragedy, Edward de Souza 
and Alan MacNaughtan are 
snarling, toothless old curs, 
not too stiff in the joints that 
they cannot destroy their chil- 
dren's happiness for their own 
pride, capable of the bland van- 
ity of such lines as “Prove 
yourself to be/A worthy son to 
such a man as me". 

The real heroine emerges 
from the shadows of a sub-plot, 
that phenomenon detested by 
French classicism. Samantha 
Bond brings tragic dignity to 
the figure of the Infanta, the 
king's daughter who loves Rod- 
rigo but, knowing marriage to 
be impossible for reasons of 
rank, does ail she can to throw 
him together with Ximena. She 
is left at the play's guardedly 
happy ending rocking silently 
in pain, an indication of how 
the piece might still move if all 
parties shared the same atti- 
tude towards it if you see Cid. 
tell him. 



Love versus duty: Duncan Belt and Stuan Lynch. English couplets deflate the pomposity 


HARE ST. HACKNEY, 10ND0N E8«A 

tQrttBdSknoai 

So many arrive as 
strangers, weary of pain 
and fearful of the unknown. 
They gladly slay as 
friends, secure in die 
embracing warmth, fortified 
and cherished to the end 
with the help of your 
graceful gifts. 

I thank you hindty 
on their behalf _ 
Sinter Superior, jp 




XVI WEEKEND FT 


FINANCIAL TIMES WEEKEND JULY 30/JULY 31 !iW4 




ARTS 



'Sleeping Beauty’ retains its purity 

Clement Crisp sees two fine performances from ENB soloists Agnes Oaks and Thomas Edur 


T he Sleeping Beauty is the 
one. and supreme, master- 
piece of lath century bal- 
let that has come down to 
us in something like its original 
form. Or, more accurately, is still 
available to us in a decently origi- 
nal form if a producer has sufficient 
humility to respect what Petipa and 
Tchaikovsky created. Other texts, 
from Giselle to Suzm Lake, are vari- 
ously corrupt and, like tottering old 
ladies, are just waiting to be mug- 
ged by ballet's eager gang of ruffi- 
ans. And they do not wait in vain 
Beauty, because it is so massive 
in its forces, seems to be reasonably 
protected, though there have been 
some pretty nasty attacks in recent 
years. English National Ballet's 
staging - I reported on its first per- 
formance last autumn - is by Ron- 
ald Hynd. Most of the proper (Le. 
Royal Ballet in 1946) text is hon- 
oured. Innovations are not crass. 


There is sometimes too much clut- 
ter of activity - the old repertory, 
as the Kirov has persuasively 
shown us. demands less rather than 
more to make its best effects - but 
what we see is Beauty and not some 
Frankenstein mishap. Visually it 
has a certain fairy-tale glamour, 
and the permanent setting is 
skilled, but it is still far too bright. 
Peter Docherty’s costuming suffers 
from the dreadful qualities of 
man-made fibres, which are 
unyielding and un-nuanced in their 
response to light and to movement 
Natural materials may be a finan- 
cial menace, but they soften, flow. 


take on gentler shapes and a more 
responsive lustre. Away with nylon. 

To end its Coliseum performances 
this week. ENB has brought Beauty 
for a first London showing. On 
Wednesday it was dominated and 
made memorable by the perfor- 
mances of Agnes Oaks and Thomas 
Edur. Miss Oaks has seemed in the 
past the prettiest of dancers, but 
one whose gifts are for light-weight 
roles. Her Aurora is clearly the fruit 
of serious work - it is technically 
bright, clear, fluent and results in a 
portrait of a young princess having 
beguiling charm of feeling, as of 
style. It is not a grand reading. 


though effects are often prodigious, 
as in the wonderfully secure and 
long-sustained balances, with nary 
a wobble. Miss Oaks brings sweet- 
ness, youthful grace, even inno- 
cence, to the part. Sometimes she is 
too ingratiating - passages when 
she lets the dance and her own nat- 
ural distinction speak are more 
effective than those in which she 
plays to her suitors and to us - but 
it is an entirely delightful, honour- 
able view of the greatest challenge 
a ballerina can know. She has 
grown up as an artist. 

1 have been fortunate to have 
seen two ideal interpretations of fire 


role of Prince Florimund in half a 
century of looking at this ballot. 
Anton Dolin in 1948 - returning to 
Covent Carden with Markova - 
took to the stage in the hunting 
scene with a dignity and grace of 
manner that were astonishing. In 
1961. in the Kirov's ideal produc- 
tion. Oleg Sokolov was a figure of 
Apollonian beauty - noble in man- 
ner. noble in dancing. I have mea- 
sured every other player against 
these. On Wednesday Thomas Edur 
matched these great examplars of 
the danse noble. His manner is cour- 
teous. unforced. Character is imme- 
diately established, as be avoids a 


persistent mistress, or stands 
slightly remote amid his entourage. 
Temperament is touched with mel- 
ancholy. His dancing, despite the 
waders he must wear, is fluent, 
angelically phrased. It is an aston- 
ishing impersonation, because as 
perfect as we have right to expect in 
ballet’s imperfect world. 

In the wedding celebrations, his 
dancing is large in scale, shaped in 
long easy sequences, phrase-endings 
beautifully melting. And there is 
neither bombast, nor trickery, nor 
one iota of vulgarity in anything we 
see. It is the dancing of a true heir 
to those real, if subliminal, tradi- 


tions of behaviour that take our bal- 
letic princes back to their actual 
historical forebear, Louis XIV. 

Company support is bright - and 
in the behaviour of King Ftorestaa 
and his courtiers, positively lurid. ! 
liked Susan Jaffa us a serene, bril- 
liant Lilac Fairy, and salute James 
Supervia as a wonderfully convinc- 
ing Tutor to the prince, looking like 
Dr Johnson, and giving the rote dig- 
nity. For follow admirers of King 
Herod, I record that there are 
infants in the Prologue whose Uttle 
runs nod expressions of terror at 
the appearance of Carabosse con- 
firm us in our belief about the 
proper fate for stage-tots. 


English National Ballet's summer 
season Is sponsored by Nomnra. 
Sleeping Beauty continues at the 
Coliseum this week; then opens the 
ENB season at the Royal Festival 
Sail from August 1. 




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Wonderful nuances of colour and light; three of the paintings from Claude Monet’s series of 30 depicting the facade of Rouen Cathedral at different times of the day and season 


T here have always 
been artists who 
have engaged 
themselves, at 
least loosely, with 
the idea of the series. The nat- 
ural narrative of the lives of 
the saints is an obvious exam- 
ple, as is the regular return to 
a particular theme or image - 
the self-portraits of Rembrandt 
and Van Gogh, or the near-for- 
mulaic landscapes of Hobbema 
or Turner. 

But the insistent return to 
the particular image and its re- 
statement in its identical for- 
mat Is something that we now 
recognise as being peculiar to 
the art of the modem period. 
Indeed we have grown so used 
to it by now as a convention of 
modernism that we hardly 
notice it. The conceptualism of 
the late 20th century, so dear 
to our contemporary critical, 
avant-garde hearts, could not 
get by without it. 

Maievich, the Russian supre- 
matist, who had seen the two 
examples of Monet's Rouen 
cathedral facades In the Push- 
kin museum in Moscow before 
the Revolution, was moved by 


Cathedrals take the road to Rouen 


the experience to say that 
“Monet's cathedral has a capi- 
tal importance for the history 
of art and forces entire genera- 
tions to change their concep- 
tions." 

Now, to brand Claude Monet 
as a pioneer of conceptual art 
would be perhaps a shade mis- 
chievous, but it remains most 
certainly true that of all the 
great artists of Impressionism 
and post-impressionism he was 
the pioneer in the practice of 
working thus closely in series. 
Furthermore, to take any of 
the paintings from those series 
that became the determining 
feature of his later career - 
the poplars, the hayricks, the 
Thames at Westminster, the 
pools and water llllies, and 
of course the cathedral 
facades - and consider them 
not simply but within the 
context of its particular group 
is inevitably to take into 
account certain near-concep- 


tual questions and assump- 
tions. 

For what we have are images 
that if they differ at all they 
do so only marginally and to 
little material effect in the bare 
terms of what they superfi- 
cially represent Yet the differ- 
ences between them are mani- 
fest. and of the first 
importance to any direct expe- 
rience, as much physical as 
imaginative, of the works 
themselves. Elusive and 
imponderable as they are, such 
differences register the shift- 
ing. delicate nuances of per- 
sonal response, ours and the 
artist's together, to the fleeting 
moment and passing of time. 
There on the canvas is the 
stroke of the brush, and the 
accumulation of paint that 
marks and records it and 
makes it permanent. And 
there, in the mind as in the 
eye. is the conjuration of some- 
thing altogether more intangi- 


ble and ephemeral, as the shad- 
ows pass across those immov- 
able, ever-changing arcades 
and pinnacles of the old cathe- 
dral - now light, now dark, 
now yellow, pink, blue, morn- 
ing and evening. 

Monet knew Normandy well, 
especially the coast between 

William Packer 
admires Monet’s 
masterpieces 
in situ 


Etretat and Dieppe, and had 
often passed through Rouen. 
He had discovered Giverny. 
down the Seine north west of 
Parts, in the early 1880s, and in 
1890 bought the house where 
he was to live for the rest of 
his life. He began at once to 
build the water-garden which 


was to be the greatest and 
most compulsive of his sub- 
jects. but his garden, as would 
any other, took time to grow. 
Besides, he was never its pris- 
oner and Rouen was less than 
forty miles away towards the 
sea. He paid his first extended 
working visit to the city in 
1892, returned in 1893 and in 
the spring of 1894 embarked 
upon the series of cathedral 
facades that, but for the later 
Nympbeas, would be the great- 
est of them alL 
He made 30 paintings in all. 
of which 20 were shown in 
Paris the following summer by 
his dealer, Durand-Ruel. 
Monet’s old friend, Georges 
Clemenceau, saw at once that 
the state should buy the lot, le 
pacquet, and addressed himself 
in no uncertain terms to the 
president of the Republic, Felix 
Faure, to say so. But the 
moment passed. Inevitably 
they were dispersed, all but ten 


of the original 30 eventually 
fetching up in public collec- 
tions around the world, but 
only seven of them in France. 
Eleven were brought together 
in 1990 for the Royal Acade- 
my’s spectacularly successful 
exhibition of the several 
"Series of Monet.” and now 16 
are being shown in Rouen, the 
first time in a century so many 
have been reunited, and where 
better than in the city of their 
making. 

All conform more or less to 
the same format, more tall 
than wide and never much 
more than three feet by two. 
The two earliest are excep- 
tional in that they concentrate 
less on the fabric of the cathe- 
dral itseir than on the old 
houses clustering round the 
foot of the corner tower that 
were destroyed in the last war. 
For the rest, it is the facade 
proper that dominates, at first 
full frontal, looking straight at 


‘Drowned Out’ at the Proms 


T he City of Birming- 
ham Symphony matte 
their second Prom 
appearance on Thurs- 
day, bringing with them Mark- 
Anthony Tumage’s almost-new 
Drowned Out. He has been 
their resident composer for 
four years (courtesy of the 
Radcliffe Trust), and Drowned 
Out was the final fruit of that 
happy association. 

The slightly jokey title belies 
the character of the music, for 
the inspiration came from Wil- 
liam Golding's Fincher Martin 


- in which the whole novel 
consists of a life-in-flas h backs 
going through the mind or a 
drowning man. Tumage's piece 
begins with sombre, ‘‘sub- 
merged" chords and a slow 
lament (saxophones are promi- 
nent as usual with this com- 
poser). As the music develops 
speed and fury, the suggestion 
of a rite is never lost; much of 
it is underpinned by a fierce, 
repetitive beat, and it rises to 
several brassy climaxes. 

At last it declines into a 
chastened elegy, with morose 


SOUTH BAJYK - 

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Sun 
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M ENGLISH NATIONAL BAAJLET Tho Stooping Beauty. 

a RMUd Hynd’a praductfon & IMa dawn; ballet b a special favourite lor 
an sons. 

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JIMMY SCOTT. TIGER ULUES, ROSE ENGLISH 

p.»t»afti<i««-P7.g5oacfiMv— cutmunauiuysac 


clarinet. In all this, there is a 
strict economy of material, 
carefully rotated and varied. 
Perhaps the musical tension 
falters in two or three places, 
but the whole is cogent 
enough. Certainly it marks a 
new stage in Tumage's com- 
mand. 

Drowned Out was not exactly 
flattered by its place in the pro- 
gramme, following upon the 
1928 Tapiola of Sibelius - a 
work of similar proportions 
and severity, but by an old 
master. Rattle has been con- 
ducting that since 1979, and his 
hand with it is utterly assured. 
Some Sibellans draw it out 
more grimly, but Rattle's 
unhesitating way with It sacri- 
ficed nothing. Towards the 
end. the violins brilliantly 
suggested a driving Arctic bliz- 
zard. through which the oracu- 
lar brass stood firm. 

One surprise: a quick pas- 
sage in it suddenly and infalli- 
bly recalled Debussy’s La Mer 
(1905). That has not struck me 
before; was Rattle deliberately 
pointing it up? (And mas It a 
bit of composer's larceny?) 
Later we were to hear La Mer 
itself, in a beautifully prepared 
performance that wanted only 


a greater weight of strings 
than the CBSO can supply. 
From where I sat, at least, they 
were sometimes submerged 
altogether. 

As nearly always. Rattle 
seemed to have deigned his 
programme to make interest- 
ing points. The odd piece out - 
but not out of place - was Mes- 
siaen's 1936 cycle of songs for 
his first wife, Potones pour Mi, 
in his much later orchestration 
(which Rattle rendered as deli- 
cately as possible). There is a 
hothouse air about them, but 
in Maria Ewing's performance 
they were hard to resist. 

Miss Ewing was in lovely, 
velvet-voiced form, and obvi- 
ously dete rmine d to make the 
songs tell without the slightest 
forcing. If she lacked the full 
power for a couple of places, 
she wisely refused to risk 
going through her tone; we 
missed nothing, and the spell 
remained unbroken. She sang 
the cycle by heart (no mean 
challenge), and illuminated it 
with a few simple gestures. 

There have been past occa- 
sions when one felt that she 
was trying too hard for theatri- 
cal effect - too much platform- 
drama, too many vocal tricks. 



Simon Rattle: utterly assured 


Not here: she had judged what 
the songs require to a nicety, 
and rendered them with an air 
of dewy freshness. If that was a 
trick, it succeeded completely’. 

David Murray 


Chess No 1032: I . . . Rb2(threat 
Rbl* and alQ) 2 Bd-t Rd2 3 
Bc 3 (to control al) Rxf2+! 4 
Kxf2(4 KxE Bc5+ and Bxa7 or 
4 Kgl Rc2) Rxh2 wins with two 
pawns up. 


the high-pointed gothic porch 
and round west window, and 
then fixing on the more 
oblique and famous view that 
slants across from the south 
west And always the emphasis 
is across and upwards, the 
ground incidental where it is 
described at all the image ever 


more suggestive, abstracted, 
hinted at rather than 
described. Pink fuses with 
ochre, grey with violet, yellow 
with orange, the cathedral 
itself seeming to dissolve into 
exquisitely covered smoke or 
mist, as it were a most sub- 
stantial pageant, Aided. These 
paintings are indeed such stuff 
as dreams are made on. 

Les Cathddrales de Monet: 
Mnsde des Beaux Arts, Rouen, 
until November 14. 


The Official London Theatre Guide 




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FINANCIAL TIMES WEEKEN D JULY 30/JULY 3 1 1994 


7.28 Nwn. 7 JO FeCx Me Cat 7 AS Joa 9a B .10 
Tha AOw»*»»« of SMppy. 038 SWAT KA *00 
Pare** 0. 

1035 FDm: Clarence the Cross-Eyed 
lion. PHot b-IIH 1960s TV Show 
Daktari. starring Marshal Thompson 
(1965). 

1 JL 28 Weather. 

12JO Grandstand, introduced by Steve 
Rider. 12.35 Motor Racing: The final 
qualifying session tor the German 
Grand Pita. 1.00 News. 1.05 Athlet- 
ics: Highlights of last week's Good- 
win Games from St Petersburg In 
Russia. 1.50 Racing from Good- 
wood: The 2.00 Vodapags Condi- 
tions Stakes. 2.05 Equestriatasm: 

The World Gaines from The Hague. 

Action from today's cross-country 
section of the three-day event. ? 
Racing: The 2.40 Vodaphone Nas- 
sau Stakes. 2.45 Equestrianis m . 

3.05 Racing: The 3.15 Vodac Stew- 
ards Cup. 3.20 Equestrianism. 4.25 
Swimming: British National Champi- 
onships from Crystal Palace. 5.05 
News Round-Up. Times may vary. 

0.10 News. 

BJS Regional News and Sport. 

5.30 A Word la Your Ear. Alison Dow- 
ling, Patrick Moore. Tom O'Connor 
and Tracy Edwards take pal In the 
verbal communication game. 

6.00 RbieTVon. A computer buff Is efis- 
patched Into an electronic world 
where he must battle with micro- 
chip Radiators. SF adventure, star- 
ring Jeff Bridges and David Warner 
(1982). 

730 Pets Win Prizes. 

B.10 Poffoe Rescue. A tormented artist 
bolds hte daughters si gunpoint - 
forcing Angel to play the role of 
meeflator. Drama, starring Stem 
BastonL 

930 One Foot (n the Grave. A pleasant 
dey on the Norfolk Broads soon 
degenerates into a series of dtsas- 
tera after the Meldrews become 
marooned Comedy, starring Richard 
Wilson. 

9JO News and Sport Weather. 

930 SMriey Bassey: I Am What I Am. 
The legendary Wetsh-bom cabaret 
superior discusses her career, 
desire for success. and ns uttfmate 
cost to her famly Ufa. 

10l 4O The Shirley Bessey Concert. 

11.40 fBm: From the Hfo. Comedy 

drama, starring Aidd Nelson (1387). 

1-30 Weather. 

ijs Close. 


7 JO DHy the Dinosaur. 7 J5 King Onawifingsra. 

7.<0 Playdays. 600 TeAng Teles. 615 Breakfeet 

with Frost 61S Sumner Sunday. 1000 See Heart 

WJSFtare Blue Ra 

1600 CouihyFBe. 

12 Weather for the Week Ahead; 
N^WSa 

11)0 Harry and the Hendersons. 

1.00 Cartoon. 

1.05 Steven Spielberg's Amazing Sto- 
ries. 

fJO EastEndera. 

2JSO Jta Boeing Boeing, Farcical sex . 
comedy, sta rri ng Tony Curtis (1065) 

4-30 FBm: The Lidy and the Highway- 
man- A lady fafe for a nobleman 
who moonlights as a mysterious 
highway robber. Romantic swash- 
buckler, starring Hugh Grant. Lysatts 
Anthony, Oliver Reed and Emma 
SammsfTVM 1969). 

60S News. 

US Summer Praise. New series. David 
Matthew and Jumoke Fashola pres- 
ent reports from religious mtsJc fes- 
tivals around the country, beginning 
in Manchester. 

IjOO Small Talk. Ronnie Corbett hosts as 
guests attempt to guess children's 
answers to a selection of questions 
about life. 

730 2potnt4 Children. BO and Ben's 
suspicions are aroused when two 
shady characters are spatted lurking 
outside their holidaying neighbours' 
house. Belinda Lang stars. 

600 Tales of Para Handy. New series. 
Comedy drama, starring Gregor 
Fisher as Peter MacFariane, hapless 
skipper of a completely unseaworthy 
vessel operating in the Mud of Kin- 
tyre. 

&£0 News and Weather. 

9.05 GaHowglase. Paul grows closer to 
Nina, and discovers more about the 
horrifying ordeal she endured in 
Italy. Final part of Ruth Render's 
psychological thriller, starring John 
McArdla. 

10J9 Mastermind. 

11.00 Everyman. New series. The effects 
of trie international boycott against 
the inurt people of the Canadian 
Arctic tor their involvement in the 
seal fur trade. 

11.60 The Sky at Night Patrick Moore 
gives a foil report on the result of 
comet Shoemaker-Levy 9's Impact 
with Jupiter In mid-July. 

12.10 Film: The Bank Shot. Nutty 

comedy, starring George C. Scott aa 
a criminal mastermind who plans a 
bank robbery with a difference 
(19741. 

1J0 Weather. 

1.35 Cl 080- 


BBC RADtQ 2 

*00 Sujotn Bonn. 60S Brian 
Matthew. 10.00 Judi Spiers. 
1200 Kayes on Saturday. 1 JO 
Jimmy's Cricket Teem. 2.00 
The Gotten Days ot Radto. 
UO Ronnie HSton. OQ Pout 
Heiney. 600 Nfck Bairadough. 
■« Jas Band Jamboree. 7J» 
Cfoetna 2 7J0 Guys and Dots. 
1600 The Arts Programme 
1605 RonrW HBton t30 Jon 
Briggs. 430 Sujatfl Barcrt- 

BBCRADIO 3 

630 Opon UnNereBy: Ttteung 

APoia the EnSgremreara. 

*55 Weather. 

7J0 Saknday Marring 

Concert. 

•JWPraoNewe 
630 Record (Mease. Brahms, 
Coctend. Dvcok. DaMres. 
Baodn. 

1200 Spctt of the Age. 

1 J» Into thoGafoen. i.i5 

Uknta Ftwv. 

" Bounemouth. 
500 Jos Reconl RequMta 
WKh Geatirey SnWu 
645 Key QuroUsa. HowM 
Gooaa “«»‘=asso panel of 
meat protessKman. 

630 Th» King's Stegere. 

7J0 BBC Rena 1994 . ran.. 
"■rhmaninov. Efe* 
^stisaoa vicwtaBykaj 

WJ5 Modern Jos Gmm. 

John Lams. 

Semce Peoere. Percy Hrafo. 


Sigmund Romberg. 
1630 Close. 


600 Open Un h m re i t y. 

12.15 RStb The Gey Divorcee. Romantic 
comedy mralcal about an unheppOy 
manfed woman seeking a divorce. 
Storing Hollywood danckiQ duo 
Fred Astaire and Ginger Rogers 
(1934). 

1- ®° Ways of Se e ing. John Berger 

assesses foe impact of photography 
on people's apprecia ti on of art from 
the past 

2- 25 Htnc A Town Llfte Alice. Wartime 

drama chronicling life among women 
prisoners heW by the Japanese to 
Malaya. Starring Virginia McKenna 
and Peter Ffocti (1956) 

4J20 Cae Boots. Why MPs are caning for 
stricter controls on car boot sales 
amid allegations that they are 
untaxad marketplaces for stolen 


645 F8m: Bridesmaids. Drama charting 

the laughter and tears of four friends 
reunited at a friend's weddfog for 
the first time In 20 years. Shelley 
Hack and Seta Ward star (TVM 
1989). 

6-15 Design for An ASen World. The 
eqitipment designed for use during 
an expedtion to Sa&an's moon 
Titan. 

645 News and Sport Weather. 

7.00 ATeSng Eye. Biography of art 
critic, essayist and Booker Prtze- 
wfoning novelist John Berger, who 
over a period c4 3D years has cre- 
ated many aedaimed programmes 
on art including the influential Ways 
of Seeing, an episode of which was 
shown eariter today. 

•600 Brooklyn Bridge. Award-winning 

flfrn-fnaker Ken Bums traces the his- 
tory of the famous span, detailing 
haw the enormous construction 
problems were overcome m a variety 
of ingenious ways to create one of 
America's best-towed landmarks. 

9.00 Seinfeld. 

9-26 FttiKTndy.Mad*, Deeply. JuSet 
Stevenson atara as a woman whose 
dead ex-lover (Alan Rkkman) reap- 
pears to teach her how to lewe 
again. Anthony MfngheSa's romantic 
tragf-comedy, also stars on Pater- 
son end Michael Nfafoney t108l) 
11.10 FUm: Goto' South. Tongue-fn-cheek 
Western about an outlaw (Jack Nic- 
holson) who marries to avoid being 
strung up by a lynch motx Wffo 
Mary Steenburgan, John Befcjshi 
and Danny DeVito (1978). 

1.00 Close. 


615 Open (Mmrafty, 610 LOT Bite. 63S Sp wwv- 
ets. 650 FkwoTa American Tate. 1615 The Ratey 
WBd Glide to Britain. 1040 Grange HHL 1135 
Dyrtanate. 11 JO While Fang. 1146 The O Zone 
1200 The Ffc tt tene a . 

1iL30 Sunday Grandstand. Introduced by 
Steve Rkfo*. 12-35 Motor Radng: 
Live coverage of the German Grand 
Prtx from Hockerheim. 230 Cricket 
Durham v Yorkshire in the Sunday 
League. 330 Goft The Curia Cup. 
News of Britain’s tmateur woman 
. goffers to America ,3-50 Cricket 
4^0 Swtrrartng: The British National 
Champion s h i ps from Crystal PNao6 
5.00 Cricket 6.15 Equestrianism 
The World Games. from 

the showjumping section of foe 
three-day event Times may vary. 

630 Rough Guide to the World's 

Islands. Magenta De Vine and Rajan 
Data* visit die Italian island of Sicfly 
to hivestigate the dramatic rise of 
anti-Mafia sentiment m Its capital 
Palermo. 

7-20 The Score. New series, in the first 
programme examining aspects of 
music. David Peart tefta to opera 
stare Ann Murray and Susan Gra- 
ham about the confusion often cre- 
ated by women singing men's rotes, 
and offore an opportunity to hear the 
world premiere of a new work by 
successfii young composer Mark- 
Anthony Tumage. 

600 Under the Sun. The conffct 

between Australian cattle rancher 
Grant Martin and expert Aboriginal 
stockman H»ry Dixon over land 
ownership. 

650 Monty Python's Flying Circus. 

620 Grand Prix. Highlights of the Ger- 
man Grand Prix from Hocfcenhafrn. 

1600 Movfedrome. Alex Cox Introduces 
tonight’s ffim. 

10.05 Rkrc Race with foe DevtL Two 
bike-shop owners and their wives 
set off for a Colorado hoBday, but 
after witnessing a ritual sacrifice, 
they are pursued across country by 
Satanic psychopaths. Gripping ttvfi- 
lor. starring Peter Fonda and Warren 
Oates (1975). 

11.30 Movtodrome. Introduction to 
tonight's second fffm. 

11.35 Flfrn: Detour. Cult thrfBer, starring 
Tom Neal (1945). 

12-45 Ciosa. 


TELEVISION 

SATURDAY 


60B GMTV. 62S Ofenme 5. 11 JD Tbs (TV Chart 
Show. 1230 pm Starting from Scratch. 

1.00 ml News; Weather. 

1.05 London Today; Weather. 

1.10 Movies, Games and Videos. 

Reviews of Used People, starring 
Shtrtey MscLalne and Kathy Bates, 
foe a ni mate d fefrytale Thumbeiina, 
and Bjjah Wood In North. 

1.40 WCW Worldwide Wrestling. 

62S Ufa Goes On. 

3JO Burke's Unr. A bomb explodes on 
an aircraft owned by a wealthy ettip- 
buBder, but the cause of the man's 
death is not as straight forward as It 
that appears. 

4jo Cartoon Time. 

445 mi News; Weather. 

600 London Today; Weather. 

610 Time Trax. Hme-traveSing cap Dar- 
ien Lambert Investigates a corrupt 
horse-racing syndicate using 22 nd 
centuy laser treetmant to Improve 
tits performance of their steeds. 

64)0 S ca venge r s. Jotei Learie leads four 
more contestants Into a foturtstic 
environment designed to test their 
mantel and physical abStiss to the 
Bmit 

740 Celebrity Squares. Contestants 

compete for cash and cars with the 
help ot celebrities Including Kathy 
Staff, Keith Chegwln, John Inman 
and Frank Bough. Hosted by Bob 
Monkhouse. 

7-30 FWn: Cofesnbo: Murder - A Sad 
Portrait- The shabby detective 
(fraws on his vast palette of experi- 
ence to pin a murder on a world-fa- 
mous p ai n te r. Crime drama, storing 
Peter Fafc (TVM 1989). 

610 fTN News; Weather. 

620 London Weather. 

625 FQm ABenu. Sigourney Weaver 
stars In this action-packed science 
fiction sequel, this time battling a 
whole colony of the vicious extra- 
terrestrials (1986). 

124)0 FOm: BOton Dolar Threat An 

American secret agent fob sn *M 
m ast er mi nd's plan to destroy the 
ozone layer. Adventure, starring Dale 
Robinette tod Patrick Macrae (TVM 
1979); ITN News HeacBtoes. 

1-45 Totr of Duty. 

640 The Big E. 

635 New Music. 

465 BPM. 

54)0 Hot Wheels. 


SUNDAY 


6D0 GMTV. 685 The Uttiest Hobo. 1610 Link. 
1630 Sunday. HJ» Monfog WoraNp. 1600 Sun- 
day- 1630 pm An Imflsaon to Ramwnbar. 1255 
London Today; Waafoar. 

14)0 ITN News; Weather. 

1.10 100 Women. 

24N Highway to Heaven. 

650 Bugs Bunny's Creature Features. 

620 An Guns in the Heather. An 

American achootxr/s stay In Ireland 
takao an unexpected turn when he 
dtacovere his elder brother Is a CIA 
agent Disney spy thriBor. starring 
Kurt Russefl (1968). 

54)0 City Safari A revealing Insight into 
the wtidSfe in the grouids of Buck- 
ingham Palace. 

630 The London Programme. Trevor 
PWpe — mines new rea e sroh into 
driver frustration on the capital's 
traffic-choked streets. 

54)0 London Tonight; Weafoer. 

0-20 fTN News; Weather. 

620 Dr Quinn: Madfotoe Woman. A 
renowned photographer raaBses ha 
may be taking his last ptotuee when 
Dr Mite reveals he Is going bflnd. 
Guest starring Kenny Rogers. 

7 JO Watching. 

600 Wycflffo. Family feuds and Beit 

relationships are uncovered after the 
apparent suicide of an amateur flau- 
tist on a secluded country estate. 
Jack Shepherd stare. 

600 FSne Kramer vs Kramer. A man 
gets to know his young son batter 
after his wife leaves to fold a new 
.fife for herself. Oscar-winning tug-o*- 
Iovb story, staring Dustin Hoffman 
and Meryl Streep (1979). 

10455 ITN News; Weather. 

11.05 London Weathar. 

11.10 Inside Track On: Health. Sue 

Lawley and a team of experts ocam- 
toa the Ufeetytes and eating habtis efi 
three femffles. 

12410 The Restaurant Show. 

1.10 Get Stuffed; fTN News Headffn e e . 

1.16 Married - With Chfidren. 

1.45 Cue the Music. 

2j 45 Get Stuffed; ml News Headlines. 

2JBO Film: Deadly Game. German drama, 
storing Mel Ferrer C1982KEngBsh 
subtitles). 

4J25 Music from the Circus. 

4415 Off Beat; Night Shin. 


RADIO 


6JXJ 4-Td on view. 635 East* Honfog. 1600 

Trans World Sport 1140 tSaefc Gamas. 1200 The 

Bto 6 12J0 pm A Gkfs Fat*La*(yen.(Erolsh 

subNSss). 

12.SS Hhc Oh Rn e iiflrKtiit Mefoeframa 
baaed on Die Redermaus. about a 
Vienna playboy's practical Joke on 
four Army officers. Anton Waforpok 
Stare (1955). 

240 Racing fro m N ewmar ket. Coverage 
of the 3.10 EBF Coknan's Mustard 
Malden Stakes. 345 Robinson's 
Aqul ogso Handicap, 4.15 Caiman's 
of Norwich Stakes, and the 4.50 
Muttiyork Value Handfoap Stakes. 

MS Broofcsfcfe; News Summary. 

6^0 Opening Shot Report on the popu- 
larity of cartoon hero Tfritin, the Bal- 
kan reporter created In 1929 by 
aspiring Joumafet Georges Rami, 
better known as Herga. 

74M The Peopie's ParfiamenL New 
series. Mambera of the pubRc are 
given a chance to drbate the week’s 
controversial Issues In Gfcanada Stu- 
dto's House of Commons repBca. 

The opening (Sscusston asks 
whether persistent young offenders 
between the ages of 12 and 14 
should be given custodial sen- 
tences. Chased by Lesley RtoefodL 
wffo the position of lobby corre- 
spondent taken by Rajan Deter. 

600 Fferc From Here to E ternity . Oscar- 
winning drama set on an army base 
In Hawaii in the months before Peart 
Harbour. Storing Burt Lancaster, 
Deborah Karr and Frank Sinatra 
(1953). 

1610 Blue Heaven. New series. Sitcom. 

storing Frank Skinner as an aspiring 
singer who dreams of quitting his 
Birmingham roots for the dizzy 
heights of stardom. 

1045 The Beat frriantlons. Anna goes 

Into a sanatorium after falfing fll. and 
leaves a message for Henrflc that 
she wants no more to do wffo Mm. 
(English subtfttea). 

12.10 Late Licence. 

124B0 Herman's Heed. 

12410 Just for Laughs- 

1.20 625 Uve: Lithe Angels 


2-55 Bostris tod Butt-Head. 
3L20 Packet of Three. 

44)5 Close. 


CHANNEL4 


610 Early Morning. 645 The Odyssey. 1615 
Saved by the Befl. 1045 RswNda. 1145 unto 
Haas on the Prairie. 


1645 FB m: Wch otos Ntcldeby. Screen 

adaption of Dickons' ebtssic drama 
about a young man's strug^a to 
protect Ms fairdy from a scheming 
iaid& Staffing Cedric Hardwicks 
and Derek Bond (1947). 

2^40 The Sand crwtte . Oscar-winrting art- 
matioa 


255 Quartet Guests inducing U2, The 
Drifters, The Kronas Quartet and 
Opera Cfrcus ctocuss the enduring 
appeal ait musical foursomes from 
the 12 th century 141 to the present 
day. 

4^5 News Summary. 

4^0 FhK C a rrington VC. Legal drama 
about an Army meior who deddee 
to oonduct his own defence when 
he is court-martialled for embezzling 
men funds. David Niven, Margaret 
Leighton and NoeSe Middleton star 
(1954). 

6^0 The Coefay Show. 

7 MO The Vafcxv and the Honor. New 
series. In the first of three drama 
documentaries recounting the untold 
story of Canada's rate In the second 
world war. two veterans of the 
country's land forcas pay tribute to 
their oomrades-fc vwms who ded in 
the humilating defeat Inflicted on 
troops defendng Hong Kong against 
the Japanese. 

600 Ffinr The Duchess and the Dirtwa- 
ter Fox. Western comedy, starring 
Goiefia Hawn as a story saloon 
singer who gets mixed up In bun- 
ging gambler George Segal’s feud 
with an outlaw geng after stealing 
Ms money (1976). 

114)0 Nabon SUGvwi’s World of 

Wonder. Proflte of the c am coreier 
enthusiast who spent his days and 
nights capturing The sights, people 
and events of New York City on 
more than 1 ,500 houre of videotape. 

12-00 Close. 


625 Aalc Max. 1230 Countrywide. 1235 AngBs 
News. 200 Cartoon Tima 210 Father Oowfeig 
(nwetigaiea 610 How to Succeed in Business 
Without Redly Tiytng. (1867) 830 Haktoom. 600 
Ari£0a Newa on Suvlay 11 M Angta Weathar. 

650 Zona 1230 GatiBnw*s Dtary. 1255 Border 
Newa 200 VUsotohlon. 230 Tender is foa Ntf*. 
(Ifltil) 530 Coro na tion Street. 615 Border Newa 

eaXTRAL: 

693 Ask M ex. 1230 Cared Newsweek 1255 
Caniid tows 200 Take 16 215 Gardenkn Tima 
245 Tore! Tord Toral (1979 530 Mutter. She 
Wrote. 615 Central News 1135 Locd Weothv. 

CHANNEL: 

625 Ask Max. 1230 flsiectionB. 1235 Rwdez 
tews Dknancha 1250 TdefomaL 230 Tha Moun- 
tain Bike Show. 230 k* Hobbs Takas a Vacttkxv 
(19BS) 440 Cartoon Tima 430 tiglmay to Heaven. 
645 Suvtvd. 615 Charnd Nana 
oimnw: 

625 Ask Max. 1130 Stoday Service. 11.45 Btaxv 
1230 Oardaner's Kay. 1255 Granpian Headlines. 
230 The Egyptian. (1954) 430 Cartoon Tima 445 
Modes, Games and Videos. 615 Tha A-Team. 610 
Appeal 615 Grampian Haadbws 1135 Grampian 
wcaxner. 
ftHWAHA* 

650 Zona 1225 Chdte Chdta 1255 Granada 
Newa 230 VUeofadfoa 230 Tender b the MghL 
(1051) 620 1> QdrvK I fc dch i Woman. 615 Gran- 
ada News 630 Coronation Street. 

HTtft 

625 Ask Max. 1225 The Uttiest Hobo. 1265 HTV 
Newa 600 Bekwed feddeL (196B) 615 On Your 
Street- 645 Grad Weaanaa 615 HTV News. 
1135 HTV WSsther. 

■■BOHAN: 

625 Ask Max. 1230 OOPSu 1250 Meridtan Newa 
230 The Mountain BBce Show. 230 to Hobbs 
Takes a fredtn (1982) 4«40 Canocn Tkna 4-50 
Hgfrway to Heaven. 645 SundvaL 615 Meriden 


625 Aak Max. 1130 Sunder Service. 11.45 Bern. 
1220 Steodi. 1255 Scottend Today. 200 Linda 
(1973) 616 The Towering Inferno. (1974) 610 Soot- 
land Today 615 Appeal. 1135 Scottish Weather. 

TVIITB& 

625 Ask Max. 1226 Newsweek. 1235 Tyne Tees 
News. 255 Cartoon Tima 615 The Scariat Ptmpar- 
nd- (TVM 1882) 650 Tyne Tees W eek e nd. 

ULSTER: 

625 Aak Max. 1230 tordetang Tkna 1206 UTV 
Live News 200 Northern Ireland Mlk C 14 X 230 
Police Six. 240 Woman of Straw. (1964) 445 
Mixdar. She Wtate. 540 Gtanroa 610 Wtewaa 
615 UTV Live Early Evening News 1135 UTV the 
News 


625 Aak Max. 1230 Wadsoutiry Update. 1233 
Wastcountry Nawa 215 Doga wfih Dunbar. 245 
Brid Encountera. 615 Wtftrowitry Cameoa 330 
The Big Gambia (1960) 615 Murder, She Wrote 
616 Weatcountry News 114)5 Wastcountry 


WEEKEND FT 


CHESS 


REGIONS 


ITV RBOtOHS AS LXMDOK EXCEPT AT IMS 

FOLLOWMQ TtWSt- 

juaaufc 

1230 Monas. Oaroas and Udeos. 13S Anglia 
News. 1.10 Mget ManseO's indyCar -94. 140 Air- 
port OL (1977) 645 Knight Rider. 930 An0ta News 
ana Soon 620 Angbe Weather. 

1230 Movies. Games and Videos. 135 Border 
News. 1.10 Gat Wsl 1.40 Mgel MonaeB-s tndyCor 
*94. 210 Tha Great Brtbah Info Robbery. (10S7) 
430 S^eretere ol Wresting. S0O Bonier News 
and Weather 
CENTRAL: 

1230 Americe’s Tap 16 135 Central News 140 
The Mountain Bfre Show. 210 KrtgM RKJer. 600 
WCW worldwide WreatBng. 650 The Fdl Guy. 530 
Centra) Newa 535 Cartoon Time. 62D Local 
Weather. 

CHANNEL: 

1230 The Uttiest Hobo. 135 Chwwei Otacy. 1.10 
Ben of British Motor Sport. zM intsmationel 
Yacht Racing. 240 My Town. 635 Cannon Time. 
650 M acQyvra. 530 Chard Norn. 605 PdBn*s 
Pte(9rte 
OMMPUH: 

1230 Cmirme-Ce. 135 Grampian I texft n es 1.10 
Tdetioa. 140 Cuirro Ctohine. 210 Ttana Lode 
(1957) 3L30 Ntgd Manedra IndyCar -04. 4.00 
Super s t a r s ol Wrestling. 530 Grampian Heedfoea 
605 Grampian News Review. 630 Grernplan 
weather. 

QmHAU; 

1230 Movies. Games and Videos. 135 Granada 
News 1.10 Gat WeL 140 N^d Mansers IndyCar 
■94. 210 The Great Brttreh Train Robbery. (1967) 
430 Sipmtn ot WmtUng. US Granada Naws 
630 Cartoon Tima. 

Kite 

1230 Mavtaa, Games and Videos. 135 HTV Nows. 
1.10 tfrgei Maaetl IndyCar *94. 140 Tobnta. 
(1967) 345 Adventure. 4.15 The Momata Bike 
Shaw. 530 HTV News. 620 HTV News. 

HTV Wtiw w KTV enyti 
930 HTV Weather. 

MERSMAJfc 

1230 The Uttiest Hobo. 135 Mendfan News. 1.10 
Beet of British Motor Sport. 140 International 
Yacht Radng. 240 My Town. 636 Cartoon Time. 
650 MflCOyw er. 530 Madden News. 

SCOTTISH: 

1230 Ch a mpkxta. 135 Scotland Today. 1.10 Tale- 
ftoe. 140 An Inrris AJ^t (The Happy tee). 210 Jack 
the Giant KEer. (1961) 6S0 The A-Teem. 600 
Scottend Today 930 Scottish Weather. 

TYHE TEBte 

1230 Movies. Genres and Videos. 135 Tyne Teas 
News. 1.10 The FbI Guy. 205 The Karan Ctepentar 
Story. (TVM 1969) 650 Knight Ftidar. 435 Tyne 
Tees Saturday 

oum 

1230 SU6 135 UTV Liva Naws 140 The Mountain 
Ska Show. 210 The Mixreiara Today- 336 Knight 
Rider. 430 WCW Worldwide Wtestfog. 600 UTV 
Uve News 630 UTV Live News 


Michael Adams edged closer to 
the world's top players this 
week at Dortmund. He finished 
second behind the Dutchman 
Jensen PikeL but ahead of the 
disting uished trio of Anatoly 
Karpov, whom he beat in their 
individual game. Victor Korch- 
noi and Jan Timman. 

This game features one of 
the current chess opening fash- 
ions. When Karpov, Adams 
and Judlt Polgar all began to 
use 2 c3 against the Sicilian 
Defence, everyone became 
interested. The move does 
sidestep countless theoretical 
monographs which assume 
that White plays the usual 2 
N£3. 

(M Adams, White; C Lutz, 
Black; Dortmund 1994). 

1 e4 c5 2 c3 d5 3 exd5 QxdS 4 
d4 Nf6 S Nft Bg4 6 Be2 NCfi? 
Black goes astray early. Expe- 
rience shows that Black should 
exchange pawns at d4. 

7 h3 Bh5 g c4 Qd6 9 d5 Bxf3 
10 Bx& Nd4 11 NcS g6 12 Be3 
Nxf3+ 13 QxS Bg7 14 0-0 (H) 
15 Rfel Rfe8 16 Radi a6 17 Bf4 
Qd7 18 Be5! Posing Black a 
strategic dil emm a, if his e7 
pawn remains unmoved. White 
switches his rooks to attack 
the king; if it advances to e6 as 
In the game. White has a 
passed d6 pawn. Qf5 

19 Qe3 h5 20 Na4 e€ 21 d6 
Nd7 22 Bxg7 Kxg7 23 Nc3 b5 
24 b3 bxc4 25 bXC4 Rab8 26 


Ne4 RbG 27 Qc3+ Qe5 If Kg8 23 
Rd3 with R£3/g3 to 
follow. 

28 Qxe5+ Nxe5 29 Nxc5 Nxc4 
30 d7 RdS 31 Re4 Ndfi 32 Rxeffl 
En route to an ending two 
pawns up. £xe6 33 Nxe6+ Kf7 
34 NxriS+ Ke7 35 Ne6 Kxd7 36 
Nf8+ Kc7 37 Nxg6 Rb2 38 a3 
Ra2 39 Nf4 h4 40 Nd5+ Kd7 41 
NcS Resigns. If Rxa3 42 Ne4 
wins. 

No 1032 



M Ferguson v M Turner. Smith 
& Williamson 1991. 

S & W, the London and 
Guildford private bank, spon- 
sors an annual international 
for young players, won this 
week by Matthew Turner, IS. 
What four-move sequence gave 
him a decisive advantage as 
Black (to play)? 

Solution Page XVI 

Leonard Barden 


BRIDGE 


1230 Movte. Games and VWeoa. 135 Watecoun- 
try News. 1.10 Mgel MensstTs IndyCar <94. 140 
Voyage to the Bottom of the Sea. (1901) 330 
Creioon Time. 650 Baywotch. 830 WutcouMiy 
Newa 630 Local Weather. 


Today’s hand comes from 
rubber bridge: 

N 

♦ 4 

f A J65 

♦ AJ 985 
*642 

W E 

4 K 9 8 7 5 3 4 J 10 


1230 Maries. Gams and tedsas. 135 Calendar 
News. 1.10 The Fa* Guy. 235 The Keren Carprter 
Stray. (TVM 1989) 350 Knight Hte. 455 (Mender 


REGIONS 


rrv REGIONS AS LONDON Pec eP T AT THE 


f 10 3 
4 742 
4 10 5 


V KQ 9872 

43 

4 Q J98 


S 

4 AQ62 

¥4 

4 A Q 10 6 

4 A K 7 3 

East-West were vulnerable 
when South dealt. With a 
4-44-1 shape South opened 
with one diamond - the suit 
below the singleton. North, in 
spite of his flvecard support, 
gave a quiet response of one 
heart South with his powerful 
19 points reversed with two 
spades, forcing to game and 
North rebid three diamonds. 
South said three no trumps, 
but his partner, not discour- 
aged. made a slam try with 


four diamonds. South, reval- 
uing his hand, went to six 
diamonds. 

West correctly led the two of 
diamonds, won by the six and 
declarer decided on a cross- 
ruff. There were five trump 
tricks in dummy, and he could 
ruff three hearts in hand. The 
four outside winners would 
give 12 tricks. In such 
situations the outside winners 
must be cashed before declarer 
cross-ruffs - it would be 
foolish to let West discard a 
club while hearts were being 
ruffed. 

South cashed ace. king of 
clubs, ace of spades, and ace of 
hearts. Now the cross-ruff 
begins. A low heart is ruffed in 
hand, a spade is ruffed on the 
table. This Is repeated twice. 
Declarer has taken II tricks, 
and is left with two losing 
clubs. West is forced to ruff 
his partner’s club winner, 
hot the diamond king on the 
table supplies the vital 12th 
trick. 

E P C Cotter 


CROSSWORD 

No. 8,519 Set by CINEPHILE 

A prize of a classic PeUkan Souveran 800 fountain pen. inscribed with the 
winner's name for the first correct solution opened and five runner-up 
prizes of £35 PeUkan vouchers. Solutions by Wednesday August 10. marked 
Cros s wor d 8j>lfl on the envelope, to the financial Times, Number One 
Southwark Bridge, London SEl 9HL- Solution on Saturday August 16 



625 Ask Max. 1225 Nawrang. 1250 Caierefer 
News. 255 Cartoon Time. 615 The Scot* Pfctarer- 
nek. (TVM 1982) 650 Catentiw Nows and Weather 
1135 Locd Weather. 


SATURDAY 


SUNDAY 


B8C RADIO 4 

330 News 

610 The Faming Week. 

350 Prayer tor the Day. 

730 Today. 

930 News. 

635 Sport on 4, 

9 JO Breakaway. 

1030 Pock the Book. 

1030 The Upmen Test. 

1130 ToRJng PoBtfca. 

1130 Eiaophla. 

1230 tirade Money. The 
tfonMn stock mertret 
1235 A Look Back of the 
future. 

130 News. 

1.10 Here Vow Sw 
230 Photo Appracwfod. 

230 Playhouse’ One Day at a 
Ttare By Anne Cte nw nc e 
Mom 

343 Rt Upo. P o rtx Me e one 
Basket Core The coys ol 
totxwg theatre. 

430 Htoxy the Hoot. 

430 Sdence Now. 

330 fife on 4. 

toSktfChte The seven 
far extra Ucreauw life. 

930 News end Sprats 
335 The Wtesk Steta Sohioon. 
3*0 Ad Ub in Alcoran. 

730 KMdoecope Feature. 
Pnfifeot stag* Pete Seeger 
7-30 SetUTOey Ntgta Theaaw 
The Ghost Runrer By Dotal 
Not***. 


930 Muste in Mfrxt 
950 Tan to Ten. 

1030 News. 

10.15 Looking Ftxwanl to tire 
Past. Historical tfecussion. 
1045 They Don’t StB Make 
That. Oo They? lorgnettes and 
monocles. 

11.00 A Night at the Opera. 
Witter Jriten MRchaO talcs 
about ira love ter opera. 

11 JO New World. By 

AaJoua Huxley. 

1230 News 

1233 srapprag Forecast. 

1243 IF Ml Close. 

1243 fl.W» As World Sendee. 


BBC RADIO 5 UVE 

635 Ooty TecUe 

630 The Breakfast Programme 

930 Weekend. 

1135 Special Assignment. 

11 JS The Ad Break. 

1230 Midday Edition. 

1615 Sportscosl. 

134 Sport on Five. 

033 Ian Soinwn's Su-o-Stt 
733 SaUBdav Edition 
935 Aram Perspective 
933 Out Tho Wee* 

1035 The Troatmom. 

1130 Mgm Extra. 

1235 AR*r Hours 
230UpWKoK- 

WORLD SERVICE 

BSC for Europe can be 
receded fa me rtem Europe 
«A mndinm *»w 343 KHZ 


(433m) M these ttmee BSTS 

600 Morgenmagazin. 850 
Europe Today. 730 News. 7.15 
The World Today- 730 
Meridian. 830 News. 615 
Waveguide. 625 Book Choice. 
&30 People and PoSwa. 630 
News. 939 Words ol Faith. 

9.15 A Joty Good Snow. 1030 
News asut Business Report. 

10.15 Wortdbriet. 1050 
Development 94. 1045 Sports. 
1130 Printer's Devil 11.15 
Letter from America. 1150 
BBC English. 11.45 
Mlttagsmngacin. 12.00 
Newsdesk- 1230 Meridian. 
130 News. 1.09 Words of 
Forth. 1.15 Mult i track 
Alternative. 145 Sports. 600 
Newshour. 3.00 News: 
Spottsvrorld. 430 News 4.15 
BBC English. 450 Haute 
AktueU. 5.00 News. 5.15 
SpOrbworid- 830 BSC Eflpsn. 
830 Home AMueO. 730 News 
oral fexixes n Geunaa 600 
Proms 94. R2D News: Write 
On. 830 Short Story. 645 
From !f» WeeMas. 930 Nows. 
B3B Words Ot Faith. 0.15 
Oeveioomera 94. 9J0 Mends n 
1030 Newshour 1130 News. 
1136 Words ot Fttth 11.10 
Book Choice 11.15 JJS: tor 
Dm Askrag. 11.45 Spsrs. 12JO 
Newodesk- 1230 Best cn 
RecotiL 130 News. 1.15 Good 
Books 130 The 

Snow 230 News. Pby °t ne 
week-. Real Estate. 600 
Newsoeefc. 630 the Yeora te 
lire Ranao* 430 Newsdesi. 
4J0 BSC Engteh. 445 :ie*t: 
ond Ih a Rewew e* Gerroar 


BBC RADIO 2 

730 Don Maclean. 935 BoP 
Hofaess Requests the Pleasure. 
1030 Hayes on Sunday. 1200 
Desmond Carrington. 600 
Benny Green. 600 Michael 
Holiday: The Stray ot Hte Ufa. 
430 End of the Pier. 430 Sing 
Somethlna Simple. 530 CtwrBe 
Chester. 730 Fticherd Baker. 
630 Sunday Haft Hour. 600 
Alan Keith. 1030 Frank 
Deteney. 123S Steve Madden. 
600 Alex Lester. 

BSC RADIO 3 
330 Open Ureverstty: American 
Conversations. 655 W aether. 
730 Sacred and Profane. 

930 Brian Key's Sunday 
Morning. 

1230 Full Score. 

130 Musical Tales: Hansel and 
GrteaL 

1.15 The Sunday Concert 
245 The Nash Ensemble, 
i 4. IS Rotterdam PtJ ha tmonl c 
j ttchesoa. Shostakovich. 
MtoOelssoftn. Janacek. 
x « lr le t it e ra t io ns on Recom. 
Beedtavan's Somg Quartet In A 
min or 

xm Prcm News. Preview of 
ere forthcoming Promenade 
concerts. 

730 EEC Proms 1994. Ethel 
Smyth. 

1030 Suneay Kay: Dctatra 
Gai Sand Zan a f.tasewta's 
ima.-cai saira. Last in senes. 
KWO rtosai. fioce- Debussy. 


Mozart. 

1236 Arnold Schoertrerg. 
1230 Ctoaa. 


BBC RADIO 4 

830 News. 

610 Prehide. 

630 Morning H» Broken. 

730 News. 

7.10 Sunday Papers. 

7.16 On Your Farm. 

740 Sunday. 

650 The Week s Good Causa 
930 News. 

610 Smday Papers. 

615 Letter from America 
630 Morrfog Sendee. 

1615 The Archos. 

11.15 Materamrava 

1145 Sunday. Bloody Suxtay? 
1615 In foe PsyMetofc Vs 
Chair. 

130 The Worid This Weekend. 
230 Gantenerar Question Time. 
230 Classic Sertat The 
ExpedMoti of Kienphry CSnkar. 
630 Pick (tithe Week. 

4.15 Power and Distorter. 

530 American Beauty: From 
foe GSttra to foe Sitich. 

530 Poetry Please! 

330 So O'Oock News. 

615 Letter tram Scottend. 

630 CMdren'S Hado 4. 

730 Banting acnm Europe. 
730 The AkpraL 
arm Htetory on foe Hoof. A 
curtate meckeaf mystery. 

600 ILW) Open University. 

&30 (FM) Headrig AtouO. 

930 (FM) Tha Nanral Hstory 


Prog a mma Wth KaWn Bock. 
BJOfPM) Costing foe Earth. 
1030 News. 

1615 Hkfden Voices. tooSme 
tiiEtaopa 

1045 Home Truths. John Miter 
talks to Lady Valerie SottL 
11.16 Rotes Apart. Narrated By 
Peter Jeffrey. 

1 145 Seeds of Faith. The choir 
Of Bramdeen School. 

1200 Nawa. 

1230 Shfaphg Forecast 
1243 fJW) As BBC World 
Service. 

1246 (FM) Close. 

BBC RUR) 5 UVE 

335 Hoi PteBuks. 

630 The Breakfast Progranane. 
930 Aiaatair Stewarfa Sunday. 
1230 MWday EcStion. 

1616 The »g Byte. 

134 Sunday Sport. 

730 Newa Extra. 

735 Black to foe Future 
630 The Uttmate Preview. 
1036 Special Assignment. 
1035 The Ad Break. 

1130 Niteti extra. 

1235 reghtcatt 
230 Up AS Mght. 


WORLD SERVICE 
BBC tar Europe can be 
received In era etem Europe 
on medium em 648 kHZ 
(403m) el these (knee BST: 
630 News and features in 
German. 330 Comporrr of the 


Month. 730 News. 7.15 Letter 
from America. 730 Jest For 
The Asking. 830 News. 615 
Music As It Whs. 680 From 
Ora Own Correspondent. 650 
Write On. 9.00 News. 605 
Wonte of FaKh. 9.15 The 
Greenfield Collection. 1030 
World News end Business 
Review. 1616 Short Story. 
1030 Folk Routes. 1640 
Sports. 1130 News; Science in 
Action. 1130 BBC English. 
1145 News end Proas Review 
in German. 1230 NeWBdeSk. 
1230 The John Dunn Show. 
130 News; Ptay of the Week: 
Reel Estate. 230 Newshour. 
600 News; The Spake That Lit 
The Bonfire. 630 Anything 
Goes. 430 News. 4.15 BBC 
English. 430 News and 
teaaxeo In German. 830 News. 
5.15 BBC Entfsh- 630 Worid 
News end Business Review. 
618 Moat's Devil 630 News 
and feetraos In German 600 
Best on Record. 630 Europe 
Today. 930 News. 609 Words 
of Faith. 615 Mothers and 
Daughters. 630 Brain of 
Britain. 1030 Newshour. 1130 
World Newa and Business 
Review. 11.15 Short Story. 
1130 Letter from America. 
1143 Sports. 1230 Naw sdca k. 
1230 The Sparks That Ut The 
Bortilre 130 World and British 
News- 1-15 Pop the Question. 
130 In Praise of Goa 230 
News; With Greet Pleasure. 
245 Music AS It Wte. 330 
Newsdesk. 630 Conpossr of 
the Month. 430 Newsdesk. 
430 BBC English. 4.45 

Fntemagazln. 


ACROSS 

1 Eat bird? (7) 

G Vehicle in which speed's zero 
could be mothballed (7) 

9 With baching America 
becomes somewhat slimy (5) 

10 Cars not allowed: drink, eat- 
ing ginger cake (2,7) 

11 Cars not allowed in pub? ffirS) 
19 Pub that's dangerous to the 

Spanish (5) 

18 Poet’s under part of one at 
home (5) 

16 Try to get over a nude display 

O) 

18 Give a lot of money as wage? 
(3.6) 

19 Doctor to deal with party (5) 
21 Southern prophet on Greek 

island (5) 

28 Garden structure, awfully 
trad, in book (4J3 
25 Navigational aid for a walk 
nearly to Lincoln? (9) 

25 Pole, maybe light, to enter 
mine? (5) 

27 Serious listener at home (7) 

28 Model to walk like a duck? 
Nonsense (7) 

Solution. &518 


□aaanaa maHnonnl 

□ □QnmBDnl 
aaana aanaaiaHHCjl 
aaaaaanQl 
aaUQHHQDQ BEH3BHI 
DO □ E El 
aaQOn nJQQQBQQIlQl 

□ a d a a a 
QUEJHHinclEB □DEEE| 
a a a h Bi 
□aaaa onEaDammBl 
anQBnaciQl 
aaaaaoDaa □qeedi 

□ ejqebqqdI 

aaaaaHa □annonEi 


DOWN 

1 Desert Edward VTH's prede- 
cessor (7) 

2 Supporting an exclamation 
about unhealthy article (9) 

3 Girl finds love - it's catching 
(5) 

4 Tighten spring holiday for 
protection (9) 

5 Saucy escapade? (5) 

6 Salute to April Pools' Day? 
(5.4) 

7 I shot out of the lift (5) 

8 Even a professional soldier? 

(7) 

14 After death's dealing one may 
need one (9) 

16 Stop a man using a cleaner (9) 

17 Like the company chairman 
In the sea? <9) 

18 Frank's job after a long time 

m 

20 The operational stage? (7) 

22 It measures length, we hear 

(5) 

23 Blow trumpet in Snake Street 
(5) 

24 Advantage arising to investor 
from girl? (5) 

Solution 8.507 


pEHQHnsm EDBEQQ 

la □ □ a h q q 
■□□□anaiDE] Hannaa 
paaaciBQE 
paHaonsHB stansm 
Is □ H ES Q Q II 
, HEBE C3DEHBEE 
0 0 Q H Q □ 

hnujuua eebb 
Q 0 0 D B a Q 
lEQnaa sanQQDBQB 
lu u n a q a q n 
□auLioa □BGQsann 
la a a q q m a 
laEgHPH BBBBQpnn 


WINNERS 8.587: A. Aetas-Cesareo, Malta; K. Aiken, Benda!. Cum- 
bria; Mrs ILL HareshTtoodon W6; HM- SaraO. Prague, C»ch Rapub- 
Hc: J- Barnes, East Lydford, Somerset R-B. Morse, Usk, Gwent 







XVIII WEEKEND FT 


FINANCIAL TIMES WEEKEND i U L Y u * «V 3 1 I <W4 



It is not necessary 
to travel very far 
from Britain to 
realise what a very 
strange place it 
most seem to for- 
eigners. To spend 
two weeks In the 
south of France is 
to be regaled, with 
the most hair-raising stories of 
local corruption. 

Fingers point at this or that new 
development which would never 
have been allowed but for an even 
larger than usual bribe. The 
strange thing is that the local poli- 
ticians who take these payments - 
no names here, I am afraid - are 
often spoken of extremely warmly. 

After one snch encounter I 
returned to our rented rflla and 
tuned into British satellite televi- 
sion news. Almost the entire bulle- 
tin was devoted to the fact that two 
Conservative MPs had been paid 
£1,000 each in return for asking a 


Just a handful of dust 

Dominic Lawson looks at the fuss over Michael Atherton’s behaviour 


parliamentary question. 

Not very seemly, 1 agree, but 
southern French heads would 
shake in disbelief at an entire 
national news bulletin being domi- 
nated by such an item, particularly 
as it was generally agreed that the 
two MPs had broken no law. 

On my return to Britain I discov- 
ered that the newspapers were 
dominated by another story of less 
than global significance: a young 
man was being excoriated by every 
columnist of note for patting his 
hand in his pocket and rubbing a 
bit of dirt on a ball. 

True, the man in question. Mich- 
ael Atherton, is captain of the 
English cricket team, and his 


action, during a Test match against 
South Africa, appeared to infringe 
one of the less well-drafted laws - 
never say “rules” - of cricket 

But I am sure that it is not just 
over-exposure to the heady air of 
southern French corruption which 
makes me think there is something 
absurd in the extent to which Ath- 
erton’s folly has been elevated to 
the level of a national scandal, with 
leader writers being obliged to 
decide what retribution the readers 
of The Daily Brute or Beast would 
wish to see exacted upon a man, it 
is generally admitted, of outstand- 
ing qualities. 

Some calls for Atherton's resig- 
nation. such as from the BBC’s 


cricket correspondent, Jonathan 
Agnew. are doubtless sincerely felt. 
But there is a self-serving element 
here which goes beyond cant and 
hypocrisy. 

tt is that the newspapers love a 
story’ to be as big as possible, and 
that there is nothing bigger than 
an English cricket captain being 
sacked. It is also true that the 
press, like all good story-tellers, 
require a beginning, a middle and 
an end. First with the aid of cam- 
eras, they find something oul 

Next they expose the malfeasance 
to public scrutiny and ridicule. 
Finally the evil-doer most admit 
the enormity of bis error and 
resign, thus proving that the press 


were all along justified in their 
hysteria. 

We saw the same process in the 
case of Tory minister David Mellor 
(sin: adultery), who lost the game, 
and in the case of BBC supremo 
John Bin (sin: dodgy accountancy), 
who won. 

Those who win are highly embar- 
rassing for the press, as The Times 
has discovered with John Major, 
who has survived its repeated 
assertion that he will not survive 
as prime minister with something 
bordering on insouciance. 

Generally the press have a stock 
response if one of those who were 
told to resign succeeds in not doing 
so. It is that standards of moral 


probity in British public life have 
declined lamentably. 

Older heads are fond of recalling 
the case of Sir Thomas Dugdaie 
who resigned, -10 years ago, as min- 
ister of agriculture tn the wake of 
the Crichel Down affair, in which 
the wrong-doing was wholly that of 
ministry officials. Sir Thomas 
declared that he was the minister 
responsible, nod must full on his 
sword - or plough. 

Which leaves me with one dan- 
gerously subversive thought When 
was the last time that a newspaper 
editor resigned because of a blun- 
der that he had committed <ti does 
happen)? 

Or when, in the late lamented 
style of the late lamented Sir 
Thomas, did a newspaper editor 
last resign because of some wrong- 
doing on the pari of one of his 
minions? Answers on a (very small) 
French postcard, please. 

■ Dominic Lous os t& editor of The 
Spectator. 


Private View/ Christian Tvler 


Man who gave his life to Churchill 


Sir Winston’s biographer, Martin 
Gilbert, talks about his own career 


E verything is there, 
wrote one reviewer, 
including Churchill’s 
laundry list. But it is 
not true, says Martin 
Gilbert, the English historian who 
holds the record for the world’s lon- 
gest biography. 

“No laundry lists appear in any of 
my volumes,” he said. "It was a 
funny myth, you see. The reviewer 
had read in a newspaper cutting 
something that was true - that 
when I was going through the Chur- 
chill archive for 1334 1 found a laun- 
dry list from Beirut and this alerted 
me to the fact that he had been in 
Beirut, which was not in any other 
biography.” 

Martin Gilbert started work on 
Sir Winston Churchill more than 30 
years ago. Recruited by Winston's 
son. Randolph, he assisted with two 
volumes of narrative and four of 
documentation. After Randolph’s 
death, he added six more volumes 
of biography and nine of docu- 
ments. The tenth companion vol- 
ume comes out in November, which 
will bring the grand total of pages 
to 22,643 and of words to 9,684,000. 
And there are six volumes still to 
come - another three or four years’ 
hard work. 

Gilbert has just published an 
entertaining bird’s eye view of his 
literary behemoth, a sort of biogra- 
pher’s autobiography, called In 
Search of Churchill. But it was in 
search of Churchill’s biographer, a 
much more enigmatic figure, that I 
panted up Hampstead Hill in north 
London. 

I found, him in his word factory, a 
large study at the back of the 
house. A fax manhip o buzzed and 
clattered in the comer. He seemed 
cautious but friendly, displaying the 
mild awkwardness of one who has 
spent many hours in solitary intel- 
lectual confinement 
The greatest living expert has his 
quirks. To devote almost an entire 
life to the story of another m a n , 
however great, might be counted 
one of them. Another is maps. Ever 
since he had to study the Schles- 
wig-Holstein question in his school- 
days. Gilbert has been fascinated by 
them. He lists 'drawing maps’ as his 
recreation. 

It is obvious that Gilbert has suf- 
fered: from those who use his mate- 
rial to write hostile biographies of 
Sir Winston, even more from those 
who twist the facts to suit their 
revisionist purposes, and from those 
who accuse him of publishing mil- 
lions of words without ever arriving 
at a real portrait. 

For a while he evaded my 
attempts to get him to define his 
relationship with his subject. Only 
when I asked if he dreamed about 
Churchill did he come out of his 
shelL 

“I don’t. I don’t think I am in any 
way obsessed by him. But I do get 
quite agitated if I read something 
about him which I know to be 
untrue and somehow to be absurdly 
untrue, or something very negative 
which I know to be ridiculous.” 

Examples, he said, included the 
assertions that Churchill was a rac- 


ist. that he was a warmonger, that 
he was always anti-Soviet, that he 
was against the miners in the 1926 
General Strike. “Any historical fig- 
ure is very much at the mercy of 
current fashion, of a clever, knock- 
ing attitude, or of some brilliant 
misportrayal - as I would see it,” he 
said. 

To illustrate, he mentioned a 
recent biography which quoted the 
phrase ’war attracts my mind’ from 
one of Churchill's letters to his wife 
Clementine. This was written after 
watching German army manoeu- 
vres before the first world war. said 
Gilbert, who promptly recited the 
full quotation by heart 'Much as 
war attracts me. fascinates my 
mind by its tremendous combina- 
tion. I can feel here is the midst of 
arms more than ever before what 
vile and utter folly and barbarism it 
all is.’ 

“The author must have had the 
full letter because I published it." 
he added. 

Do you write to the papers? 

"No. I don’t write to the papers. 
I’m not his defence lawyer. Tm not 
defending him in a court of law. Tm 
not obliged, when some of these 
controversial books come out. to 
defend him or express an opinion. 

“Indeed there are things in my 
books which have become the basis 
of the attacks on him. If that’s 
recognised, it’s pleasing. I don’t 
have to feel agitated because people 
take a different point of view." 

Have you left certain tilings out 
because they were interesting to 
voyeurs but not to historians? 

“No. Once or twice it was the 
exact reverse." He described an 
occasion during the war when 
Churchill was drunk and expressing 
outlandish opinions. “They were 
not relevant to the conduct of the 
war, but I felt I had to bring it in 
because it is part of him. It took 
place. It was true." 

You have been unusually trusted 
by your witnesses, I said, especially 
by people wanting to put the record 
straight. Did you feel handicapped 
by their trust? 

“Not at all. Sometimes it worked 
the other way. People confided neg- 
ative things. It’s not that I became 
the repository of Churchill-lovers. 
Even within the family there were 
those with very critical views.” 

Do you yourself have strong feel- 
ings about Churchill? 

“I suppose I do. I do feel that 
some of the things that he fought 
for and worked Tor. spent his wak- 
ing hours trying to do, were impor- 
tant.” 

That he was a great man? 

“That he was a great man. And 
therefore I do get quite upset if the 
whole of his life's endeavour is 
undermined. After all. I’ve spent 
quite a lot of my life trying to estab- 
lish what his life’s endeavour iaas. H 

So what were Churchill's faults? 

"His tremendous lack of sensitiv- 
ity to the attitudes of others. I deal 
with that in every government 
department he had. He would bully, 
bruise and batter others in his 
determination to make his point.” 

General Sir Edward Spears, who 



knew Churchill during the first 
world war. saw a different fault It 
was, he told Gilbert innocently, that 
Winston was *too fond of Jews’. 

“One reviewer said that as a Jew. 
I had a natural sympathy for the 
underdog and was therefore over- 
swayed by the fact that Churchill 
was against dictators and expressed 
sympathy for vic tims, i think that’s 
too subtie. After alt you don't have 
to be Jewish to pay heed to the 
victims of totalitarianism." 

I asked Gilbert if he had, after all. 
written a history rather than a biog- 
raphy. 

That could not be true, he replied. 
It was a "life in the round", about 
Churchill’s personality, emotions, 
feelings and motivation as well as 
the events in which he played a 
part. 

It was the biographer’s job to 
bring out such things as Churchill's 
capacity for alienating people. But 
it was quite wrong for a biographer 
to deploy evidence - let alone doc- 
tor it - to support his own opinion 
of his subject. 

Why did you go to such lengths 
as to track down the estate agent 
who sold him Chartwell? Some peo- 
ple would call that obsessive. 

“No, no. It’s my professional 


approach really, my academic train- 
ing." Gilbert said he learned his 
methods from A J P Taylor, his 
tutor at Oxford, a brilliant exploiter 
of public archives and private dia- 
ries. 

Do you think there is such a 
thing as the truth? 

“Yes, there is historical truth. But 
if truth is a building it has two 
things iiryfonniTring it one is per- 
spective, and one is the lack of evi- 
dence. I do believe there is such a 
thing as true history, but it’s not 
necessarily tremendously exciting 
or revelatory. It’s not the history of 
the conspiracy, the secret.” 

There must have been times. I 
said, when you wished you had 
never started. 

The hardest part, he said, was 
tracking down those who in the 
1930s had kept Churchill supplied 
with government secrets, allowing 
him to campaign against appease- 
ment. One thing that kept him 
going throughout was the false pic- 
ture being painted by others. 

In your desire to correct have you 
not become seen as an apologist? 

“People are wrong in saying that 
somehow I am Churchill’s partisan. 
They are mistaking partisanship 
which excludes evidence for an 


attempt to tell the story as it actu- 
ally was." 

But isn’t someone who spends 30 
years of his life on a biography 
bound to be partisan? 

“I don’t think so. He must have 
certain feelings which encourage 
him to get to the bottom of it. Sup- 
pose I had done Hitler. I can envis- 
age being just as thorough and not 
coming out as an apologist of Hit- 
ler.” 

In writing such a book. I 
suggested Gilbert bad put hims elf 
at the mercy of reviewers since few 
non-historians would read it. 

He agreed and talked of a “Berlin 
Wall" between a writer and his 
readers. Some reviewers, he said, 
“make you weep with pleasure and 
delight. With others you think this 
man is simply not writing about my 
work.” Whichever the case, readers 
of the work were greatly outnum- 
bered by readers of reviews. 

For instance, the historian Philip 
Ziegler had described the work as 
‘monocular’. “It wasn't even ill- 
meant. It was a phrase, quite a 
clever phrase. I’m not quite sure 
what it means but it has that slight 
pejorative thing. So hundreds of 
thousands or people will say ’Ah. 
yes. well, that’s Gilbert. He's mon- 


OaEnBeere 

ocular.’ So my portrait in the round, 
as I believe it to be. somehow 
doesn’t exist in those readers' per- 
ceptions." 

So you feel you have acquired the 
opposite label from the one you 
have earned? 

“Yes. but I think you have to step 
back and say Tm not spending my 
professional life in order to get a 
good label or run away from a bad 
one.’ It’s unfortunate and some- 
times it's rather painfol but. you 
know, that's not the object of the 
exercise.” 

What will you do nest? 

“I haven’t decided. When I was 
appointed to succeed Randolph I 
was about to write the biography of 
Cripps. But non there is one." 

You can pick and choose, can't 
you? 

“I have been so spoilt by archives 
that I think I could only choose 
somebody whose archival impact 
was enormous.” 

Do you mean S talin ? 

Gilbert paused. “No. I think. I'D 
leave Stalin to friends and col- 
leagues. No. I was thinking of some 
British figure. But I haven’t one in 
mind.” 

He smiled. “All suggestions grate- 
fully received.” 


Continued from page I 

bedrock. The Conservatives have 
never polled less than 40 per cent of 
the English vote in a general elec- 
tion. Exclude the inner cities, and 
at the last election they took more 
than half the vote across England. 
Under a similar electoral system to 
the UK's. France's ruling Gaullists 
triumphed in last year’s French 
election with the support of a mere 
28 per cent of the electorate. 

Furthermore, the non-Tory vote Is 
deeply divided ~ and divided most 
of all on the issue of opposing the 
Conservatives. Since the 1950s 
about half the Liberal vote has typi- 
cally been second preference Tory. 
the rise of the Liberals in the last 20 
years signifies, above all, a decline 
of support for Labour among the 
English electorate. 

True, Liberal MPs and activists 
have typically been closer to Labour 
than the Tories, but knowing their 
electorate to be more ambivalent 
they have been wary of saying so. 
Even now, with policy divisions 
between Liberal Democrats and 
Labour infinitesimally small, the 
two parties glare at each other 
across a raised drawbridge. 

What, then, of Gray's notion that 
under Thatcher the Tories con- 
vened to a radical variant of mar- 


England’s one-party state 


ket liberalism profoundly offensive 
to the English middle class? 

The Conservatives have, in feet, 
long been the party of market liber- 
alism. Back in the late 18th century 
William Pitt’s Tory party was Com- 
mitted - until deflected by the wars 
against revolutionary France - to 
tax cuts and an assault on tariffs 
and budget deficits. 

The early 19th century saw a 
struggle between the free market 
and the landlord consciences of the 
party. It was resolved in favour of 
the free marketeers by Sir Robert 
Peel's repeal of the Com Laws in 
1846. This established the Tories’ 
commitment to minimum levels of 
taxation and economic intervention 
consistent with the winning of wars 
and elections, although trade pro- 
tectionism continued to be an issue. 

Disraeli’s “one nation" rhetoric in 
the 1870s was a smokescreen for a 
social policy consisting of two 
essential and enduring principles: 
the identification of the Tories as 
the party of all property-owners, not 
just landlords: and the trumping of 
whichever social reforms - enacted 
or likely - of the party's Labour or 


Liberal opponents were judged nec- 
essary for electoral success. 

Under Salisbury that meant 
upholding Gladstone's extension of 
the franchise. Under Stanley Bal- 
dwin. in the inter-war years, it 
meant accepting a social safety net. 
After the second world war it meant 
preserving the welfare state. 

What happened in the 1980s was 
not a conversion to market liberal- 
ism, but a social change within the 
Tory elite which strengthened its 
startling discovery that the party 
had become Britain's natural gov- 
erning force. A new self-confidence, 
bolstered by Thatcher's leadership, 
led the party to espouse its market 
liberalism more forcefully than it 
had done for decades. 

The social transformation was 
dramatic. In 1939. the Tory party’s 
400 MPs included just 10 solicitors, 
eight accountants and four teach- 
ers. “When the call came to me to 
form a government,” recalled Bal- 
dwin of his first government in 
1923. “one of my first thoughts was 
that it should be a government of 
which Harrow should not be 
ashamed.” 


Tory cabinets were stuffed with 
aristocrats and their close relations 
as late as Harold Macmillan's pre- 
miership in the early 1980s. Mac- 
millan's successor was the 14th Earl 
of Home, and most of the old bri- 
gade survived under his successor. 
Edward Heath. 

Neither Thatcher (Grantham 
High) nor Major (Rutiisb Grammar) 
were - or are - much concerned at 
the shame of Harrow and Eton. 
Under Thatcher, the sons of teach- 
ers, doctors, mainstream profession- 
als and small tradesmen largely 
replaced the landowners, barristers 
and wealthy businessmen on the 
Tory benches in the House of Com- 
mons, and followed them into gov- 
ernment. The result is a Tory elite 
more representative of its electorate 
than ever in the party's history. 
Major is its apotheosis. 

For all its new-found radicalism, 
the new Tory elite has been wary of 
reining back the public sector. Pri- 
vatisation and the curbing of trade 
unions, policies popular or at least 
inoffensive to middle England, have 
been the most radical changes of 
the last decade. By contrast, spend- 


ing on state benefits, education and 
health services has risen broadly in 
line with the expectations of the 
Tory middle classes. 

Kenneth Clarke (Nottingham 
High School. Cambridge Univer- 
sity). the archetypal modern Tory 
MP. addressed four-square the ques- 
tion of the middle classes and pub- 
lic spending in a recent lecture 
which brilliantly exhibited the sen- 
sitivity of the modern Tory 
antenna. “It is idle to think that 
middle England does not sometimes 
feel worried." he declared. “Provid- 
ing a sense of security in an uncer- 
tain and changing world has noth- 
ing to do with feathering middle 
England” - which, of course, is just 
what middle England likes to think. 
Indeed, the greatest 1980s catastro- 
phe - the poll tax - occurred 
because Thatcher was too mindful 
of the raw prejudices of middle 
England's home-owning ratepayers. 

Clarke put his finger on the nub 
of Tory vulnerability in the next 
decade - English middle-class inse- 
curity in the face of employment 
uncertainties and fiat or falling 
bouse prices. 


There is nothing new in such mid- 
dle-class anguish, as a brief glance 
at Agatha Christie's detective nov- 
els will confirm. In the past, how- 
ever. middle England looked to the 
Tories as a guardian from insecu- 
rity-in particular from the evils, 
real and imagined, of Liberal and 
Labour governments. Now, middle 
England appears to be laying the 
blame for its insecurity at the feet 
of a Tory government. Just possi- 
bly. if the ongs: persists, a new 
model Labour party renouncing 
redistributive socialism and led by 
an impeccable public schoolboy 
could become the repository of mid- 
dle English anguish in a general 
election. 

It is a paradox that successful 
Conservative parties are rarely con- 
servative in practice, since without 
a capacity to adapt to change they 
could never succeed for long In gov- 
ernment. Their conservatism lies in 
their rhetoric and the emotional 
loyalties they inspire. For summer 
reading. Tony Blair could do worse 
than a biography and collected 
speeches of Lord Salisbury. 

■ This is adapted from A Conser- 
vative Revolution? The Thatcher- 
Reagan Decade in Perspective. 
edited by Andrew Adonis and Tim 
Homes. Manchester University Press, 
£35 hardback, £1199 paperback. 


Such 

woolly 

ideas 

Nigel Spivey 

O nce it was far coats. 
Now, since Fashion gurus 
have obscured the differ- 
ence between real and 
ersatz hides, it is woolly jumpers. 
Shops one thought of as staid - the 
Scottish knitwear specialists, with 
their changeless tartan ties and 
avuncular cardigans - have become 
targets of the Animal Rights MilitU 
This is the organisation which 
gutted the Cambridge store of Edin- 
burgh Woollen Mills earlier in the 
month. The local animal rights 
spokesman allocated precise credit 
for the action to a guerrilla sub- 
group of his movement, known as 
the Justice Department And jus- 
tice. he said, had been done on the 
grounds that “sheep-shearing leaves 
sheep susceptible and cold as u 
naked human.” 

This was not an isolated incident 
The Cambridge branch of Boots the 
Chemists was set alight, and certain 
research units around Britain have 
received a new sort of home-mad* 1 
bomb: an exploding mousetrap 
primed with razor blades. This aims 
not only to remove the digits of 
those scientists suspected of animal 
abuse, but also makes a statement 
on behalf of mice, so often the 
choice for laboratory tests. 

A flurry, then, of animal right* 
activity. There is nothing new in 
this. But the extension of anathe- 
ma-status to pullovers is new. and it 
Is always interesting to watch how 
the British deal with such issues, 
for the British make it part of their 
self-definition .that they are kind to 
animals when others in Europe, 
especially southern Europe, are not. 

This nationalistic pride was trum- 
peted during European negotiations 
about rules for transporting live- 
stock. Even those of us who like a 
good steak, it seems, are concerned 
that the ox shall travel to his 
slaughter in decent comfort 
Gourmets will point out that a 
well-rested beast tastes better, so 
this is not pure charity: stilt it is 
true that the British get angry 
about the ill-treatment of animals, 
and in that sense the animal rights 
movement is never entirely 
m arginal. 

Whether many wool-wearing peo- 
ple or even woolly liberals will ever 
feel pity for chilly sheep is doubtful. 
But translating kindness towards 
animals into justice for animals is 


something that we ought to take 
more seriously than we do, and sci- 
entists. with distinguished excep- 
tions. such as James Cam Lovelock, 
are too quiet about it. 

Those activists who resort to 
pyromania are probably not the sort 
to engage in rational argument Yet 
it is a debate which used to be very 
much alive in pagan philosophy. 
Pythagoras, who first articulated 
vegetarianism in the sixth century 
BC, was only one of many thinkers 
who addressed animal rights. 

But Christian theologians from St 
Augustine onwards have quelled 
the issue, being content to accept 
the animal kingdom as a part of 
creation subordinate to human 
needs. According to St Augustine, if 
we took the commandment “Thou 
shall not fair as an injunction not 
to slaughter animals, we should 
also have to prohibit ourselves from 
uprooting parsnips. 

This is what logicians call a slide. 
To say that one move will lead to 
another is a familiar method for 
blocking moral progress. Faced 
with a man who believes that sheep 
should not be shorn, we might then 
insist that he abstain from the con- 
sumption of honey, milk and eggs - 
ail of which have been regarded as 
theft by some legally-minded pur- 
ists - and, like St Augustine, chal- 
lenge him to wrench a happy pars- 
nip from the earth. 

The application of human justice 
to the animal world hinges, as Rich- 
ard Sorabji demonstrated recently 
in Animal Minds and Human Mor- 
als (Duckworth), on how Ear we con- 
sider animals to share in the human 
capacity for reason. 

Charles Darwin believed that 
there was no human trait which 
could not be found reflected in one 
animal or another: but modern sci- 
entists, following Aristotle, have 
been forced to use an exclusion 
zone based on a technicality. Tlw 
technicality is that animals have no 
syntax. It follows that if a creature 
cannot construct a sentence, then 
we are at liberty to do with it what 
we will in the slaughterhouse or the 
research institute. 

Consideration of babies, parrots 
and chimpanzees will Immediately 
generate worries about the absolute 
logic of this technicality. Indeed, it 
is hard to see what relevance It has 
in a debate which Is primarily 
about pain and the capacity of liv- 
ing things to feel it. 

Pythagoras stopped a man beat- 
ing a dog because he recognised in 
the dog’s yelps the voice of an old 
friend. Most of us. if we think about 
it. will admit unease about testing 
chemicals on beagles. That does not 
mean, necessarily, that we would 
not wish chemicals to be tried on 
rats, nor that we should charitably 
prefer to wear nylon rather than 
wool 

Wbat matters is that we give the 
matter some thought. In that sense, 
one has to feel grateful for the occa- 
sional arson attack. Crass as they 
are. such actions are not 

unfAiinA<tA ’TWou rirrViMu AlalfP \K