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FINANCIAL TIMES 


Europe’s Business Newsuaoe: 


Hie rescuer 


Euro Disney's 
Saudi prince 

Man in the news, Pago 7 




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WEEKEND JUNE 4/JUNE 5 1994 


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Airbus prepares 
to seek orders for 
new jumbo airliner 

Tbe European Airbus consortium is to start 
marketing a jumbo aircraft with 500 to 600 seats 
to ch a lleng e the Boeing 747*5 mono poly of the 
large airiiner market 

Airbu s wD l start talks with airilnes on its pro- 
posted A3XX large aircraft project soon after 
Britain’s Parnborough Air Show in September, 

chief executive Jean Pierson said: Page 2 


Hizbotlahr Israel and the 
pro-Iranian ffizhpllah group were in a tpn » i stand- 
off after an overnight exchange of salvoes during 
which Israel moved tank* and. artillery up to 
its bonier with Lebanon. Page 2 

Bruwsats flfcety to ravfve steel plan: Hie 

European Commission looks set next week to 
perform a U-turn and back a fresh effort to revive 
its-rescue plan for Europe’s steel industry. 


ie 21,00 


PBkfaagtoa sails insulation arm: KBangton 
of the UK took another step in reducing its debt 

and refocusing on its core glass business through 

the mAn ffUpni) Mbrf WlHi^twn hwnlattim 
to US fibreglass group Owwas-Ccnnng. Page 8 

n sn U s n p rs ssos Jurat to boost scono m y: 

US Treasury secretary Lloyd Bentsen gi gnaTfod 
thattheTJS would continue to press Japan to 
boost its economy with the aim lowering its 
trade surplus. Page 2 . 

Castro! to help Md for tend speed record 




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CagfcroL TI Group and other T&itish companies 
areto help woridfond speed record holder Bichard 
Nobfecf &eUK budd a car to exceed his raampii ' 
record, iset in Nevada's Black Rock desert lfl years 
ago. IfrNbbte, pictured with the RoBs-Royce 
Spey jet engines which will power his car, is 
rivalled by grand prix and electronics gro*$ 
McLaren, which plans tobufld a U Qflnuft car. • • 
Page 4 _r ;:. •• •• ’ /. - - 

UK Jiaii isdt Bwr Hong Kong ligh t s : - 

Britalndrewback from inflaming its relations 
with Chite hyrt^ecting ^»nn for a human rights 

nnhijm ln pcm m ffnng yiyig and denying visas 

•to two faffing Chinere dis sidents ahead. of today’s 
fifth anniversary of. tbe Tiananmen Square massa- 

-ask. Rage> : ,-V 

FsB fci US JobtoM; The US Labour Department 
said the jobless ratefoU fe&perceat last month 
firton &4 par cod, in April s much steeper decline 
tbonexpected inUnamdal markate. Page 2 

Hutchlsop Wbampoa fadcosovsr port: 

Hutchison 17hamp0a, diva3ffled Hong Kong 
conglomerate, tookconlrol of Britain’s Fufixstowe 
container port by paying Orient Overseas Interna- 
tional ESffin <fEL2m) for the 25 per cent of the 
part thatlt-cild not own, Page 9 ; 

Jakarta a wn a 1 wfot on forrign Inwitmnf 

Indonesia has~ slashed limits on. foreign investment 
in effort to compete with ndgibouring Asian 

s q a o i^ oabring more attra c ttre investment 
packages-Paget 

PW^pjauJlIM fosqnad PoUah plant: 

RatAuto PoImadsigBed loanand equity agree- 
ments worth DM28&5m ($168m) to help finance 
the RipHnsfon and modernisation at its car factory 
at Bfeb&aBSala, Boland. Page 9 

Great Portland In £&Otm d*al«: Great Portland 
Estates of tfce UK announced nearly. £6Qm ($90m) 
of propertyacquisitioDs. prindpaQy of inaini&tctnr- 
inganddigtributlcm^^ 

NafWast caul anwr Mt> nojoooi Up to 

60#)0 peupte in the UK were affected by a mistake 
in processing by National Westminster Bank 
which ledtoVlra^taedtt and d^t card trans- 
actions being put through its computer twice. 


Bugattf to WMfc New Yoric Hatfatg: Bugstti, 
Italian luxury carmaker which owns Lotus of 
the UK. is to seek a stock market listing in. New 
York in the autumn. Page 9 


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Inquiries launched as PM pledges Chinook tragedy will not impede anti-terror fight 

Major vows to beat crash setback 


By Michael Cassefi, Jimmy Bums 

and Bernard Gray 

The British government 
yesterday launched three 
inquiries into the Chinook heli- 
copter crash in Scotland which 
killed 29 people and dealt a blow 
to anti-terronst efforts in Ulster. 

After a day of emergency meet- 
ings in Belfast, at which politi- 
cians, army mia s ecurity 
tried to assess tbe impact of the 
accident. Sir Patrick tfayhew. 
Northern Ireland Secretary, 
acknowledged the full extent of 
the tragedy but stressed that it 
would not undermine the govern- 
ment's anti-terra rigm drive- 

Sfr Patrick said the accident. 


on the slopes of the 1,405ft Beinn 
na Lice on the MuE of Kintyre, 
was “a dreadful and tragic 
event". But he grn pha»«-spd that 
tbe “operational effects” of tbe 
crash would be overcome. Mr 
John Major, prime minister, ^ 
those killed would be replaced 
and the work of the security 
forces would continue. 

Among tfia victims of the crash 
were Assistant Chief C onstabl e 
Brian Fitzsimons, c hief of the 
SUC special branch. Also on the 
flight were mm* other senior and 
mir^ dip- p an king special branch 
officers, six Northern Ireland 

OfBop nfflr-f alg - tnnhiiHng mem- 
bers of MK - and nine senior 
mili tary inteZHgeoce nt Tiw aa. 


Page 3 


□ MoD defends the Chinook □ IRA outdone by tragedy 
□ Risk managers incredulous 


A senior Stormont official with 
security responsfbili&es said: "It 
is a terrible blow at a time when 
we have a clear, upper hand. We 
will double efforts to demonstrate 
that we intend to stay on top.” 

Despite the devastating impact 
of the crash on morale in the 
security forces, officials expect 
that disruption to anti-terrorist 
operations will be quickly over 
come and that the IRA is 
unlikely to benefit from the unex- 


pected setback. Valuable experi- 
ence may have been lost, but the 
damage to longer term intelli- 
gence ga+hprfo E aTlt i anH. I»rmii 
1st operations will be limited. 

With investigations already 
underway, security chiefs have 
ruled out the possibility that the 
Chinook fell victim to sabotage. 
Among the most likely reasons 
for Thursday's disaster - which 
happened as tbe helicopter took 
its passengers to a security con- 


ference in Inverness - are 
mechanical failure or the poor 
frying conditions at the time. 

The aircraft, which has 
recently been refarbished by Boe- 
ing, the helicopter’s manufactur- 
ers, with new avionics, engines, 
transmission systems and rotor 
blades, was not fitted with all- 
weather radar or a "black box” 
flight recorder. 

Last ni ght. Labour challenged 
the decision to allow a large 
number of top-rank security per- 
sonnel to travel together. Dr 
John Reid, Labour armed forces 
spokesman, said be was seeking 
a government assurance that the 
decision was not affected by 
financial consideration. 


Dr David Clark, Labour’s 
defence spokesman, claimed 
there was "a serious shortage of 
helicopters". He said that to save 
money the government had 
delayed any firm decision on 
ordering new helicopters. 

Sir Patrick defended the prac- 
tice of allowing so many senior 
personnel on one flight as "quite 
normal”. One senior anti-terrorist 
source said such flights were 
judged to run the least risk of 
successful attack by tbe IRA. 

inq uiries into the crash will be 
conducted by tbe Department of 
Trade and Industry’s air acci- 
dents investigation branch, 
Strathclyde police and by the 
RAF for the defence ministry. 


Umlever 
retreats in 
Procter 
& Gamble 
‘soap war’ 

By Ronald van de Krof 
In Amsterdam 

Unilever, the Anglo-Dutch 
consumer products group, yes- 
terday adminad its new genera- 
tion washing p ow der could dam- 
age . clothing nnder "extreme 
laboratory amd unex- 

pectedly dropped a court ease 
against Procter & Gamble. . 

Unilever had accused the US 
c o mp any , its hitter rival in the 
global detergents, market, -of 
"untruthful and mislead- 
ing" statements. 

The case, which had been 
scheduled to be heard In the 
Netherlands next week, centred 
on alleged claims from a PAG 
executive that Unilever’s new 
super-concentrated detergent 
Could da m a g e clothes. 

The two companies compete 
fiercely in the £6bn European 
deterge nt s market. 

Umtever said P&G’s comments 
about the new de terge nt , called 
Onto Power in the Netherlands 
and Persil Power in the UK, had 
been hosed on trials conducted 
by the US company in extreme 
laboratory conditions that were 
divorced from normal washing 
conditions. “We do not believe 
P&G’s technical analysis can be 
generally applied to real life,” 
said Mr Willem Salman, chair- 
man of Unilever's Dutch arm. 
Lever Nederland. 

Unilever said it had recre a ted 
extreme conditions in its own 
laboratory and found that under 
some exceptional diwn ustances 
a degree of wear and tear could 
be detected- It bad therefore 
decided to “fine-tune” the vital 
ingredient in the detergent, a 
manganese-based compound that 
accelerates washing action, to 
remove any doubt 
Unilever said that before it 
launched the new powder it had 
tested tiie product with consum- 
ers in real-life conditions for 
more than two years and never 
encountered any problems after 
weQ over 10,000 washings. 
Unilever also dropped a second 


"Some of tiie more lurid press 


companies 


squabbling 
” Mr Sehnan 


he said. “Hie prod- 
has been a success, 


The detergent has been 


A second D-Day invasion 



American D-Day veteran Francis Marino and colleagues collect sand from Omaha Beach 


By David Buchan m Caen 

Normandy is bracing itself for 
this weekend's commemorative 

aggawW- 

The combined force includes 
same 14 beads of state and gov- 
ernments, 4D£00 D-Day veterans, 
100X100 tourists and battalions of 
broadcasters and press. To 


ensure it does not finish off in 
the next few days what Opera- 
tion Overlord began 50 years ago, 
France has just declared the 
remains of Hitler's Atlantic Wall 
d ef ences an historic monument. 

But the region will take a 
pounding before the main com- 
memoration ends on Monday 
night in a peace extravaganza in 


Caen. US, British, nanaitian and 
French paratroops are to re-enact 
on Sunday their “drops” on the 
western and eastern edges of tbe 
invasion zone. Most will be serv- 
ing troops. But the landing may 
feel an the hard side for the 38 
veterans of US 82nd Airborne 

Continued on Page 22 


Sharp decline in 
US jobless rate 
unsettles bonds 


By Antonia Sharpe and Peter 
John In London and Frank 
MoGurty in New Yoric 

Leading government bond 
markets swung wildly yesterday 
as traders struggled to interpret 
US employment data which 
seemed to signal a stronger than 
expected improvement in the 
labour market 

Bond prices at one stage were 
down by more than a point on 
both sides of the Atlantic on 
fears that the sharp fail in the US 
jobless rate, to 6 pm- cent last 
month from 6.4 per cent in April, 
would lead to higher inflation 
and interest rates. 

Investors were disturbed by 
upward revisions in April and 
March payrolls, which left the 
three-month average in line with 
expectations. The markets found 
the sharp drop in the unemploy- 
ment rate even more troubling 
because it suggested greater 
upward pressure cm wages. 

Tbe M Is were late wiped out, 
however, by a strong rally as 
analysts focused on other aspects 
of the employment report, includ- 
ing weaker than expected 
employment growth last month. 
Non-form payrolls rose by only 
half as much as the consensus 
forecast The upturn in prices 



2731 v 2 S 2731 1 2 3 
May tB9*. Jon May 94 Jun 
aptretobrtManffiautMs 

was also said to have been influ- 
enced by rumours that the US 
Federal Reserve was buying 
shorter maturity bonds. Dealers 
in US Treasuries attempted to 
cover their short positions in a 
rising market By lunchtime the 
benchmark 30-year bond was 
trading up nearly a point at 87%, 
pushing the yield down to 736 
per cent 

The so-called “short squeeze" 
triggered rebounds in European 

Continued on Page 22 
US jobs suggest growth may be 
strong, Page 2; Editorial Com- 
ment Page 6; Chill blows in 
from west Page 6; London 
shares. Page 13; world stocks, 
Page 19; Lex, Page 22 


Hanson angered by 
Dorrell query over 
‘too high’ dividends 


By Roland Rudd 

Lord Hanson, the chairman of 
the AngJo-US nnngj mn iwr a b* _ has 
accused Mr Stephen Dorrell, 
Treasury financial secretary, of 

sounding fika a socialist" in. 
questioning tbe wisdom of high 
dividends. 

En a tetter to the minister, Dard 
Hanson, whose company donated 
£100,000 to the Conservative 
party during its last financial 
year to September, said the issue 
of dividends was a matter for 
shareholders and. their company. 

“It has nnflifrrg to do w i t h the 

government" he added. 

Mr Dorrell angered Lord Han- 
son by suggesting recently that 
UK dividend pay-outs, which 
have risen significantly over the 
past dec ad e, may have become 
too high and inflexible. 

Mr Robin Cook, Labour shadow 
trade and industry secretary, has 
also drawn attention to the high 
proportion of profit companies 
spend on dividends, prompting 
Lord Hanson to observe that Mr 
Darrell “sounds like a soriahsT. 

Mr DonreD said yesterday he 
"wholeheartedly agreed" with 
Lord Hanson that the level of 


CONTENTS 


dividends was a matter for 
companies. 

However, he said the Treasury 
had decided to review savings 
and investment to see whether 
the rise in dividends had came 
about because of the tax struc- 
ture set by the government. 

“After 15 years of deregulation, 
there’s no question of us regula- 
ting dividends," Mr Dorrell said. 

"What we are looking at is 
whether companies are paying 
high dividends because at what 
we are doing - in terns of the 
tax system - and whether compa- 
nies would continue to pay out 
the same level of dividend if 
t hing s changed under a more 
level playing field," 

Lord ffianam made clear in his 
letter to Mr Dorrell that he 
believes the Treasury is wrong to 
be concerned about the growth of 
dividends through recession. 

He described high dividends as 
a "good discipline” for compa- 
nies. providing it did not strip 
them of cash and restrict corpo- 
rate investment He also argued 
it was not helpful for companies 

Continued on Page 22 
Dividends worry, Weekend V 


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Q THE FINANCIAL TIMES LIMITED 1994 No 32^84 Week No 22 LONDON ■ PARIS • FRANKFURT - MEW YORK ■ TOKYO 



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US jobs point to solid economic growth 


By Michael Prowse 
in Washington 

US economic expansion 
remains robust, but the pace of 

growth is not accelerating, offi- 
cial figures indicated yester- 
day. 

The Labour Department said 
the jobless rate fell to 6.0 pear 
cent last month from 6.4 per 
cent in April, a much steeper 

decline than financial mar kets 

expected. Officials said this 
probably overstated the 
strength of the economy, 
partly because of recent 
changes in the way unem- 


ployment data are collected. 

Figures for payroll employ- 
ment - based on a different 
and generally more reliable 
series - pointed to a slight 
deceleration in economic 
growth. Non-farm employment 
rose by 191,000 to 112.8m in 
May, considerably weaker than 
the consensus projection of an 
increase of about 285,000. 

The increase would have 
been only 120.000 but tar an 
artificial boost caused by the 
return of striking members of 
the Teamsters’ unio n. 

Job creation in May was 
sharply lower than in March 


and April, when payrolls 
increased by a revised 379.000 
and 35&00Q respectively. 

Jobs gains last month were 
overwhelmingly concentrated 
in service industries. Manufac- 
turing employment fell slightly 
and construction employment 
expanded only modestly after 
impressive gains in March and 
April 

Ms Katharine Abraham, a 
senior Labour Department offi- 
cial, said the labour market 
had improved last month but 
warned that the scale of the 
jobless fWijnfl mi ght be mis- 
leading. “Whenever unusually 


large movements occur in a 
idng ia mfTrrtti, the magnitude of 
those changes often turns out 
to have been overstated once 
additional data become avail- 
able, " she said. 

On a longer view, the figures 
confirm the strength of US eco- 
nomic expansion. Roughly 
1.2m jobs have been created 
since January, a taster pace 
thaw last year, when the econ- 
omy grew by 3 per cant 

Many economists believe the 
jobless rate is now dose to the 
level historically associated 
with upward pressure on wage 
pmf price inflation. 


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Bentsen to press for Japan boost 


By Peter Norman, 

Economics Ecfltor 

Mr Lloyd. Bentsen, the US Treasury 
secretary, (pictured left) yesterday 
signalled the US would continue to 
press Japan to boost Us economy with 
the aim of lowering its trade surplus. 

Speaking ahead of next week’s talks 
amimg leading industrialised coun- 
tries at the Organisation for Eco- 
nomic Cooperation and Development 
in Paris, Mr Bentsen said he would 
like to see Japan cut its income tax 
soon, then at a later stage move to 
raise consumption taxes. “Hopefully 
that would farther stimulate their 
economy and help in the balance of 


trade,” he told a Confederation of 
British Industry lunch In London. 

Mr Bentsen stressed the US was 
pressing Japan to open markets for 
the benefit of all nutyw. Emphasis- 
ing US determination to encourage 
global recovery, he said the admin- 
stration was committed to having 
Uruguay Round trade liberalisation 
measures in effect as Quickly as possi- 
ble and “well before the European 
Union ratification is complete". 

Mr Bentsen said US Treasury econo- 
mists calculated the Uruguay Round 
would have the same effect as tax 
cuts of $975bn (£645bn) in industria- 
lised countries between 1995 and 2004. 
Including developing nations, the 


Round would yield a “global tax cut” 
of $LSOObn-*2,OOObn over a decade. 

He gave an upbeat appraisal of the 
US economy. The recent rise in US 
long term interest rates was not a 
major constraint, although there was 
a “modest lessening” of activity in the 
housing sector. The increases in 
employment, highlighted by yester- 
day’s new payroll figures, had not 
caused inflationary pressures. The US 
economy had accommodated the rise 
in employment through i ncr eases in 
productivity and capital expenditure. 

“Inflation does not seem to be a 
factor now. It looks like it win stay 
that way for some time.” 

Nearly 3m new jobs bad been Gre- 


eted f t i | v thf* Chnton administration 
took office and it was “well on the 
way. to the 8m” target set for the 
four-year presidential term. “The fun- 
damentals of our economy are in 
great shape. I haven't seen it this 
good for 20 years,” he said. 

Mr Bentsen said he was encouraged 
by economic developments in the UK 
arid the rest of Europe. Britain had 
resumed its position as the biggest 
fh ppi gn rfirerf investor in the US last 
year, he disclosed. 

“The preliminary numbers show 
that UK i nve s tment in the US is up by 
nearly glObn for 1993, with total 
investment of well over $104bu, again 
exceeding Japan,” he said. 


FDP in 
vote to 
support 
Kohl 
coalition 

By Judy Dempsey in Rostock 

Germany's Free Democrats 
yesterday voted overwhelm- 
ingly to support Chancellor 
Helmut Kohl's governing 
coalition after Mr Klaus Kin- 
kel, foreign minister and 
chairman of the party, deliv- 
ered a blistering attack on the 
policies of the opposition 
Social Democratic Party. 

In the keynote speech in the 
opening day of the FDP’s 
three-day congress in the 
northern port of Rostock. Mr 
Kinkel warned the 660 dele- 
gates to pull together and sup- 
port continuity rather than 
face the prospect of a govern- 
ment ruled by the SPD and 
Greens, or a grand coalition 
comprising the Christian Dem- 
ocratic Union and SPD. 

Kinkel warns of 
political isolation 
if the party does 
not pull together 
ahead of federal 
elections 
in October 

Opinion polls ahead of the 
federal elections on October 16 
show growing support for Mr 
Kohl’s Christian Democratic 
Union. 

However, the FDP, in power 
as a junior partner with either 
the CDU or SPD for a quarter 
of a century, has still to move 
above the 5 per cent threshold 
necessary to gain representa- 
tion in the Bundestag, the 
lower house. 

Mr Klnkel's speech, which 
received a standing ovation, 
was aimed as a warning to the 
FDP that it faced possible 
political isolation if it did not 
pull ranks together, support 
the CDU and drop any linger- 
ing sympathy for an SPDfFDP 
coalition. 

“We have been a successful 
balance in difficult times [with 
the current coalition], A 
strong FPD is the guarantor 
against a Red/Green or a 
Grand coalition,” he said. 

Only 16 of tbe delegates 
voted against the motion, 
which asked the congress to 
support “on the basis of the 
FDP’s liberal programme, a 
successful coalition with the 
CDU/CSU in the next legisla- 
tive period.” 

Earlier in the week, Mr Kin- 
kel and his supporters had to 
persuade the rank and file to 
stick with the status quo even 
though the party’s two ideo- 
logical wings failed to unite 
during the presidential elec- 
tion last month of Mr Kohl's 
candidate. Mr Roman Herzog. 
Nearly 40 per emit of the FDP 
delegates voted for Mr Johan- 
nes Ran, the SPD candidate. 

• The SPD yesterday called 
for a pact between govern- 
ment unions and the Bundes- 
bank to create Jobs. Reuter 
reports from Bonn. 

Mr Rudolf Scharping, the 
SPD challenger to Chancellor 
Kohl, told a gathering of 600 
labour representatives that 
industry would continue to cut 
jobs this year, despite signs of 
a moderate economic recovery. 


Israeli tanks and artillery face Hizbollah 


By David Honovitz 
in Jerusalem 

Israel and the pro-Iranian 
Hizbollah group remained in a 
tense stand-off yesterday, after 
an overnight exhange of sal- 
voes during which- Israel 
moved tanka anti artillery up 
to its border with Lebanon. 

Residents of northern Israel 
emerged yesterday morning 
from a night spent in bomb 
shelters. Salvoes of katyusha 
rockets, fired by Hizbollah in 
retaliation for Thursday’s dev- 
astating Israeli air strike on its 
training base in the Bekaa Val- 
ley, landed inside Israel over- 
night. but caused no injuries 
and little damage. 

Israel and its proxy militia, 
the South Lebanon. Army, hit 
back by shelling the sources of 
rocket fire. There were no fur- 
ther rocket barrages during the 
day, however, and the threat of 
an escalation of hostilities 
appeared to be receding. 

Nevertheless, many residents 
of villages in southern Leba- 
non were reported to be fleeing 
north for fear of further Israeli 
air raids. 

Many families from the 
northern Israeli town of Kuyat 
Shmonah were also heading 
away from tbe border area, 
spending the weekend with 
friends and relatives. 

Close to tiie port of Tyre in 
southern Lebanon, a Hizbollah 



Israeli gun crews await orders at the Lebanon border yesterday after guerrillas fired rockets in retaliation for an Israeli airraid 


guerrilla was lolled by Fijian 
troops serving with the Unifll 
peacekeeping force in a clash 
on the coastal road that left 
one Fijian critically wounded. 

Israeli military sources, 
meanwhile, denied a claim by 
the fundamentalist Moslem 
group Warn ir Jihad Hiat it had 
killed two Israeli soldiers in 


the Gaza Strip in retaliation 
for the strike against Hizbol- 
lah. 

Thursday’s raid was the 
heaviest blow suffered by Hiz- 
bollah at Israeli hands, but the 
group’s secretary-general, 
Sheikh Hassan Nasrallah, 
pledged to intensify anti-Israeli 
actions. 


Lebanon's schools, hanks 
and shops stayed closed yester- 
day as thousan d s of Hizbollah 
supporters filled tire streets of 
Beirut in funeral processions 
for the a guerrillas lolled in 
Hip Israeli raid. 

Mr Amr Mousa, Egypt’s 
foreign minister, yesterday 
condemned the Israeli strike 


as “not acceptable” and 
warned of the potential nega- 
tive implications for the peace 
process. 

But Israeli officials said 
that they hoped tbe peace 
process would not be affected 
and that Syria would now 
exert its influence to rein in 
Hizbollah. 


Ripa di Meana 
says Berlusconi 
cheating in poll 


By David Gardner in Brussels 

Mr Silvio Berlusconi, the new 
Italian prime minister and 
media tycoon, is illegally using 
his dual position “to steal an 
advantage and (heat the elec- 
torate" in next week’s elections 
to the European Parliament, 
Mr Carlo Ripa di Meana, the 
former EU environment com- 
missioner, alleged in Brussels 
yesterday. 

Mr Ripa di Meana, now 



Ripa di Meana: Greens to 
bring case against Italian 
premier’s television monopoly 

standing as an MSP at the 
head of tbe Italian Greens' list, 
presented a list of alleged 
infractions to the European 
Parliament, and demanded Mr 
Berlusconi’s disqualification as 
a candidate for Strasbourg 
under EU electoral rules. 

He also said lawyers 
acting for the Greens were 
trying to bring a case against 
the Italian premier's tele- 
vision monopoly under EU 


treaty competition rules. 

The former commissioner 
called for an immediate 
inquiry by the European Par- 
liament into the “black-out 
conditions” for opposition cam- 
paigning because of .the broad- 
casting monopoly exercised by 
the three private channels 
owned by Mr Berlusconi’s Fto- 
invest holding company, and 
the three RAI channels con- 
trolled by the government 

Campaign broadcasting bad 
been cut by 30 per cent an RAI 
channels and 80 per cent on 
Fininvest stations, be claimed, 
although it is understood both 
groups agreed before last 
March's Italian general elec- 
tion to cut costs by cutting 
Euroelection coverage. 

The Italian premier is head- 
ing his Forza Italia list in all 
five of Italy’s electoral colleges. 
So too, in line with traditional 
practice in Italy, are a dozen 
other prominent politicians for 
their parties. 

But Article 6 of the 1976 Act 
laying down rules for Euro- 
pean elections, transposed Into 
Italian law in 1979, states that 
members of national govern- 
ments are ineligible for elec- 
tion as MEPs. 

Only in Luxembourg are 
existing ministers, including 
prime minister Air Jacques 
Santer, beading lists for Stras- 
bourg. But there, by contrast, 
the government is up for re- 
election in national polls the 

tranrift day . 

Mr Ripa di Meana made clear 
this was “only the first round" 
in his movement’s attempt to 
impugn the Berlusconi govern- 
ment The second round will 
focus on persuading Brussels 
to bring a court case against 
the Fininvest/RAI duopoly. 


Jakarta relaxes rules ou 
foreign investment limits 


By Manuefa Saragoaa 
in Jakarta 

The Indonesian government 
has slashed limits on foreign 
investment in an effort to com- 
pete with neighbouring Asian 
economies offering more 
attractive investment pack- 


The deregulation package 
has been welcomed as a break- 
through by Indonesia’s interna- 
tional business community. “It 
is very, very big news for us 
and it will make a difference to 
the amount of companies 
investing here,” said a Jakarta- 
based Japanese investor. 

Foreigners will be allowed to 
own 100 per cent equity in a 
company. At present a maxi- 
mum of 85 per emit is allowed 
for investors setting up in Java 
or Ball, tiie two preferred desti- 


nations. and frill ownership 
was permitted only for ven- 
tures worth 850m (£38m) or 
more cm outlying islands. 

The new laws also open up 
sectors as diverse as nuclear 
power, mass media, ports, tele- 
communications, railways and 
civil aviation to partial foreign 
ownership - the government 
did not specify what percent- 
ages it would permit- and lift 
restrictions on the region and 
m i n i m ru n capital requirement 

The package also ends com- 
pulsory equity divestment for 
foreign companies, an issue 
which has frightened off many 
investors. Before, foreign com- 
panies were required to reduce 
their stake In joint ventures to 
49 per cent, 20 years after their 
start-up date. Under the new 
laws, foreign investors may 
determine independently what 


size of stake to hand over to 
their Indonesian partner after 
15 years of operating in the 
country, allowing foreigners to 
retain majority ownership. 

In addition, foreign compa- 
nies will be granted 30-year 
licences to operate in Indonesia 
compared with 20 years at 


“The teeth erf the divestiture 
laws have been removed and 
divestiture was always a real 
problem for investors here," 
said a Jakarta-based econo- 
mist 

Tbe loosening of restrictions 
comes after foreign investors 
complained that the govern- 
ment’s previous deregulation 
package of last October was 
not thorough enough. It was 
also sparked off by an unex- 
pected drop in foreign invest- 
ment last year. 


Airbus seeks 
orders for 
new jumbo 


By Paul Betts. Aerospace 
Correspondent, In TotSouse 

The European Airbus 
consortium is to start market- 
ing a new jumbo aircraft with 
500-600 seats to challenge the 
Boeing 74 Ts monopoly of tbe 
large airliner market 

Airbus will start serious dis- 
cussions with a selected group 
of airlines on its proposed 
ASXX large aircraft project 
soon after Britain’s Farnbor- 
ough Air Show in early Sep- 
tember, Mr Jean Pierson, chief 
executive, said yesterday. 

Although he did not expect 
airHnns to rash in immediately 
with orders, be believed there 
was likely to be demand for a 
new jumbo by about 2002. 

“Our supervisory board last 
week decided we are now 
ready to be serious about this 
project," he added. 

He estimated development 
costs for ASXX at around $8bn 
(£5.3bn). The aircraft would 
have two decks running the 
full length of the fuselage, pow- 
ered by four pngines and would 
have a range of 7,000-8,000 nau- 
tical miles. Its cost to airlines 
would be below 8200m (£132m) 
and it would have 20 per cent 

lower operating costs than the 
current Boeing 747-400, he said. 
The 747-400 can seat between 
450 and 500. 

British Airways and Singa- 
pore Airlines have already 
expressed interest in super 
jumbos. Mr Pierson said Air- 
bus was “in regular contact" 
with BA on its new project. 

Before launching a new 
jumbo development, Airbus 


would have to get a significant 
number of firm commitments 
from airlines. 

The four Airbus partners 
(Aerospatiale of France, Ger- 
many’s Deutsche Aerospace, 
British Aerospace and Casa of 
Spain) have been jointly study- 
ing with Boeing for the past 
two years the development of 
an even larger 880-seat airliner. 

But these studies did not pre- 
vent both Airbus and Boeing 
pursuing independent studies 
to develop new jumbo aircraft, 
Mr Pierson stressed. 

He noted that Boeing had 
recently stepped up studies m 
a larger version of its 747-400 
jumbo with a new wing. 

This has increased suspicion 
among Airbus partners over 
Boeing’s motives for collabo- 
rating with the Europeans on a 
joint super jumbo project 
The Airbus partners are wor- 
ried Boeing is trying to use the 
joint studies to delay Airbus’s 
entry into the jumbo market 
while the US manufacturer 
prepares the next generation 
747 to consolidate its hold of 
the very large aircraft market 
Mr Pierson also said Airbus 
wanted to match Boeing’s lat- 
est productivity targets aimed 
at driving down production 
costs by 25 per cent and reduc- 
ing production cycle times. 

For Airbus narrow-body air- 
craft, the target was to reduce 
production cycles from 12 
months to nine months nett 
year and six months by 1996. 
For larger wide body aircraft. 
Airbus wants to reduce tbe 
cycle time of 15 months to nine 
months by 1996. 


NEWS IN BRIEF 


Japan current account 
surplus rises by 22.6% 

Japan’s current account surplus rose by a larger than expected 
22.6 per cent in the year to April, writes William Dawkins in 
Tokyo. The surplus widened to $l&98bn (£9J24bn) in April, 
breaking a declining trend shown in the previous tiro quarters, 
said the finance ministry. 

This comes in the wake of the US and Japan’s relaunch of a 
fresh attempt to break their deadlock on ways to make flu 
Japanese market more open to imports. US and Japanese govern- 
ment officials say talks on insurance, one of the three areas at 
stake, started construct! roly. 

A sharp rise in exports trf semiconductors and oil tankers and 
a decline In the value of ofl imports were behind the growth in 
the surplus, said a finance ministry official. The April figure 
still marked a decline from tire $15.76bn surplus in March. 

The trade balance, covering manufactured goods only, rose by 
12 per cent from April last year, to $13^5bn. Within fids, 
exports rose by &9 per cent and imports by 3^ per cent 

Schneider chairman stays in jail 

Mr Didier Pineau-V alencienne, rhab -mnn of the French electrical 
engineering company Groupe Schneider and one of France’s best 
known bu si ne ss m en, faced his second weekend in prison last 
night, after Belgian authorities gave so indication as to the date 
of his release, write Emma Tucker in Brussels and John Ridding 
in Paris. An appeal against his detention is expected to go before 
the court early next week. He is under investigation over allega- 
tions of fraud and swindling relating to two subsMlaxtes 

of Groupe Schneider. The prosecutors claim assets worth about 
BFr4Abn (£94m) were concealed from regulators the share- 
holders of Cofibel and Co fira ia a g, two Schneider subsidiaries at 
tbe heart of the investigation. 

Compromise urged over Bosnia 

The “contact g roup” of major powers working for a settlement 
m Bosnia has written a strongly worded letter to the warring 
parties, urging them to heed the international community and 
negotiate a compromise, write Our Foreign Staff. 

The document was intended to set the tone for a meeting to 
Genera today of the contact group -which includes the US, 
Russia and the European Union - with the Bosnian government 
and its Serb adversaries also in attendance. 

Boost for Swedish vehicle sector 

Th e Swe dish government yesterday agreed to help fund a joint 
researc h pro gramme with Volvo, Saab Automobile, Scania and 

*%»!*** fa a to bolster the compet- 
ravamssof toe Swedish motor industry, writes Hugh Camegy in 
Stockholm. The state will provide half of the SKrMOm (BL&Sui) 
™ *®pro»ect over the next three years, adding to 

““““Dy ky the government ou 
mdiBtnM research and development Scania, one of the world's 
Leading truck makers, said the project would aim to keep Swed- 
at the forefront of technical develop- 

ss&na? ^ tnms > wrt — -* 


Aden calm despite attacks 


By Erie Watkins in Aden 

The civil war between north 
and south Yemen continued to 
rage yesterday, despite a UN 
Security Council resolution 
earlier this week calling for an 
immediate ceasefire. The 
southern stronghold of Aden, 
for weeks the mean objective 
of the north’s military offen- 
sive, now resounds hourly 
with the thud of distant explo- 


But Adenls are continuing 
their daily lives convinced 
that their defences will bold 
and their city will not falL 
Most observes in the port 
city consider northern units at 
ZinJIbar the greatest threat to 
Aden. Located about 60 km to 
the east, the northern units 
numbering some 10,000 troops 
have been held in check for 


over a month, pinned down by 
a combination of southern 
ground, air and naval forces. 

The power of those forces 
remained evident yesterday as 
southern jets flew repeated 
sorties from Aden airport 
towards the east, the reports 
of their bombs soon reverbera- 
ting throughout the city. 
Accompanied by sudden 
flashes lighting up the distent 
sky, the echoing explosions 
carried on well into the night 

But the northern army con- 
tinues to push. Frustrated by 
southern resistance lasting 
nearly two weds at Al-Anad, 
a key defensive position 60 km 
north of Aden, northern army 
units on Tuesday opened a 
new offensive a few kflometres 
to the east at Tur AtBaha. 

The move seems to have 
taken southern defenders by 


surprise. They are reported to 
have responded quickly, 
though, and to have slowed 
the northern drive. But north- 
ern artillery fire was just out 
of range, falling just 10 km 
short of Aden’s oil refinery 
and outlying suburbs. 

Aderris are angered by the 
northern assault on their city. 
“We did not ask for this war, 
bat we win not accept such 
ntftfficc ” said Mr Ahmed Kas- 
sim, a 35-year-old father of 
four. He was standing in the 
front room of his modest 
house, shattered just hours 
before by the impact of bombs 
(bopped by northern jets. 

Southern political leaders 
have likewise remain 
undaunted by stepped-up 
northern «*tegfcs on fbsir capi- 
tal, continuing their efforts to 
form a functioning state In 


defiance of the north. The rul- 
ing presidential council, itself 
established just 10 days ago, 
announced on Thursday for- 
mation of a 30-man cabinet of 
ministers to ran tbe govern- 
ment 

The northern gov e rnment in 
Sanaa accused southern sepa- 
ratists of violating the UN 
ceasefire call by setting up 
such a government 

The southern leader Mr All 
Salem ai-Bajdh announced on 
May 21 that the south was set 
ting up a separate state after 
four years of union with foe 
north in a united Yemen. 

Full of feces already familiar 
to most southerners, the new 
cabinet held few political sur- 
Pises and was dearly designed 
to maintain public confidence 
1x1 ad^ancmg north- 

era hostility. 


■THE FINANCIAL times 

-PuMnhed bj The FimuxsaJ How 

CtnbH, NfiKfcmgenpktz 1 60311 f 

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M0, Fa* ++49 69 5964481, Tefcx 416193. 
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Gc*dbaft«flUtrer and in London by Dnid 
g-M. I fe* and Alan C Mifcr. Ppue QVM 
Dniek-Venrieb and Marketing OabH. 
Arina rakRorendahl- StfUK 3a, S3aw 
Neu-Ittnbnrg (owned by Hti&l* 
frtewttfaM h ESN: ISSN 01W-736J _ 

ResponHbfe Ednoc Richard Lastbot cto 
Financial Time* Limited. 
Number One Soabmit Bridge. Londoa SB 
9HL, UK fjfan+mhw. ^ p ^niM ThoM 
™ GmbH are: Tbe Financial Ti m® 
Ltd, London and F.T. (Gonnasy 
|) Ud, London. Sonhokkr ol 
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Fioaocai Tunes Limited/ Number Ok 
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FRANCE 

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Nmd Edab, Jifcl Hat <fc Cut, F39J® 
*"*“£<>** l. Editor Riehnri Laafcot 
JSSrciSSN 1I4W753. CcM P hritm PWmV* 
No 678QSD. 1 


DENMARK 


Tde- 




FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


NEWS: INTERNATIONAL 


N Korean dispute deepens 


By John Burton Jn Seoul 
and Reuter 

The US, South Korea and 
Japan were yesterday seeking 
ways to respond to North 
Korea's obduracy after a decla- 
ration by the taternational 
Atomic Energy Agency that 
Pyongyang had broken the 
continuity of nuclear safe- 
guards inspections in unload- 
ing spent nuclear fuel hum a 
reactor without outside super- 
vision. 

As the 15-month dispute over 
North Korea's nuclear pro- 
gramme reached a new critical 
phase. US President Bin Clin- 
ton said in Rome he also expec- 
ted to discuss the crisis with 
Russian President Boris Yelt- 
sin. 

Mr Hans BHr IAEA chief, 


was due last night to brief the 
United Nations Security Conn- 
ell, which may next week con- 
sider imposing economic sanc- 
tions against Pyongyang. In 
Washington, South Korean and 
Japanese officials were 
involved in State Department 

tallcB. 

The IAEA wanted to select 
and analyse the withdrawn 
fuel rods to determine whether 
North Korea had diverted plu- 
tonium from the reactor in 
1989 to develop at least one 
atomic bomb, as daisied by US 
intelligence. It said it was no 
longer possible to verify inde- 
pendently if the North Korea 
had diverted the plutonium. 

Pyongyang has warned that 
sanctums would be considered 
“an act o f war'’ and threatened 
to withdraw from the nuclear 


nonproliferation treaty (NPT), 
expanding its nuclear pro- 
gramme. But both Chinn and 
Russia, which wield veto 
power in the UN Security 
Council, suggested yesterday 
that they would not support 
the immediate imposition of 
sanctions. 

Mr Tang Jiaxuan. the Chi- 
nese deputy foreign minister, 
said during a visit to Seoul 
that diplomatic negotiations 
with North Korea must con- 
tinue and gflnrfifmR “ may only 
complicate matters,** 

In Moscow Mr Yeltsin told 
the visiting South Korean Pres- 
ident trim Young-sam that the 
Security Council must first 
issue an explicit warning to 
North Korea before resorting 
to sanctions. He how- 

ever, that Russia would sup- 


port MTirrtrmc if North Korea 
withdraws from the NPT. 

The QS. Japan and South 
Korea will continue discus- 
sions today in Washington on 
the possibility of im posing a 
unilater al arminmir embargo if 
China Mocks a sanctions reso- 
lution in the UN. 

South Korea is already pre- 
paring measures to suspend 
gradually Its trade with the 
North, which amounted to 
£8fen (£12am) last year. Japan 
may try to shut off cash remit- 
tances by KoreanJapanese to 
North Korea, which is Pyong- 
yang's largest source of hard. 

currency amounting to at least 

$600m annually. The three 
countries will also consult on 
increased measures in 

preparation for a possible con- 
flict on the Korean peninsula. 


The Tiananmen Square killings: five years on 

Air of stability belies Mother’s 

t j 5 crusade 

leaders nervousness to expose 

Tony Walker on why China’s government is 
wary of the increasing boldness of dissidents 

- -• - v . ' 
s-". / *. ■ .•? ■ /• 


O n Being's vast central 
Tiananmen Square, 
crowds of holidaymak- 
ers in the hot sun of early sum- 
mer went about their business 
thin week as lwnal 

Tbey stood before the statue 
to the revolutionary m a r ty r s , 
had their photographs taken 
beneath the late Chairman 
Mao’s portrait on the Gate of 
Heavenly Peace, and gazed at 
the im pnamg Great of the 
People. 

These scenes of quiet craning 
and going might have been 
unexceptional if it were not for 
pervasive security on the 
square and in surrounding 
areas. 

As the anniversary 
approached of the 1989, June 4, 
Tiananmen massacre, the 
authorities were prepa r ed to go 
to extraordinary lengths to 
ensure that no incident would 
disturb an appearance of calm. 

Amang-the concerns preying 
on the mtnrfg of the leadership 
is that this year marks the 
fifth anniversary of the crash- 
ing of the student rebellion. 
More important, perhaps, is 
the wwphaflfa that China’s lead- 
ers have placed on political sta- 
bility since a meeting last 
November of the Communist 
party’s central committee. 

This gathering approved a 
batch of sweeping economic 
reforms, including a belated 
assault on inefficient and over- 
staffed state enterprises. These 
risk antagonising a restless 
workforce at a time of cost of 
living increases and growing 
joblessness in eitfes - 
Offlctelly, China's urban 
unemployment stands at 2.6 
per cent,, but this vastly under- 
states numbers of unemployed 
and under-employed workers. 
Some estimates pot jobless 
rates in the citie s at more than 
20 per cent 

-This is a whole body erf peo- 
ple just ripe for revolution,” 
said a western official in Bei- 
jing who specialises in issues 
of social stability and human 
rights. . 

Sporadic workers’ distur- 
bances have become a fact of 
Ufe in towns of the northeast 
and Yangtze River valley domi- 
nated by state-run heavy 
industries. 

Peasant fanners are also 
angry over rising prices and 
poor returns, . 

China’s dissidents, in spite of 
a government crackdown 
including the recent arrest of 
their unofficial leader, Wei 
Jingsheng, have also been 
speaking out. 

This new boldness among 
political activists includes peti- 
tioning China’spartianient, the 
National People's Congress, for 
the release of jailed dissidents. 

Wang Dan, one of the leaders 
of the 19S9 movement, com- 
mented adventurously in a 
western publication this week 
that China’s economic reforms 
would not succeed without 
progress in political reform 
and, in particular, a re-assess- 


. . ..*» ■ . , <■.*_ ; ■ _ 

. V" i 1 . t . • ...... 



death toll 

By Tony Walker In Beijing 

Mrs Ding nun grieves to 
day, with an intensity that is 
alrairmt palpahte, the death of 

her son slain by the rhhmsg 
army in die Tiananmen 
Square protests that erupted 
in Beijing in the late spring 
ami early summer of 1989. 

Five years after Jiang Jfelan, 
a 17-year-old high school stu- 
dent. left iris parent’s modest 
apartment for the tiww to 
join the student protests, Ms 
mother has not forgotten nor 
has she for given three respon- 
sible. This year, cho mu) ber 
husband are fasting for the 
day to ™*rir the occasion. 

in the years since the death 
of her only child, Mrs Ding, a 
57-year-old professor of aes- 
thetics, has conducted what 
has been virtually a one- 
woman enm p al g n to hi ghlight 
the extent of the killing and to 
expose the perpetr a tors. 

It has been a lonely crusade 
for which she has paid a price: 
Shp Iwk been famichm i from 
rite Communist Party and 
“retired” from her teaching 


Police guard Beijing’s Tiananmen Square a day before the fifth 
anniversary of the nrifitary crackdown on democracy protests *t> 


mod of the Tiananmen massa- 
cre. 

“After Deng Xiaoping's 
death, the first issue China will 
face will be readdressing the 
June 4 events, not only at the 
top levels of the Communist 
Party but also awning ordinary 
people,” he wrote. “Unless it 
does this, China will find it 
impossible to make a smooth 
transition to a modem soci- 
ety” 

These views will certainly 
not find favour with a Chinese 
leadership seeking to put the 
events of June 4 as for behind 
it as possible. Indeed, President 
Jiang who also hands 

the Communist Party, sought 
last month in a rare direct ref- 
erence to the Tiananmen mas- 
sacre to argue that the crack- 
down on pro-democracy 
protesters had yielded positive 
benefits. 

“A bad thing has bees 
turned into a good,” Mr Jiang 
told the visiting Malaysian 
Prime Minister Mahathir 
M ohama d 

“As a result, our programme 
of reform and opening has 
forged ahead with steadier, bet- 
ter and even quicker steps, and 
our advantages have been 
brought into even fuller play. 
History shows that anything 
conducive to our national sta- 
bility is good." he added. 


Mr Jiang’s remarks were 
interpreted by western officials 
as a toughening of a self- 
confident government’s warn- 
ing to dissidents in light of 
China’s “victory" over the US 
on the Most Favoured Nation 
trading status issue last 
month, when Washington 
abandoned attempts to use 
trade to pressure China on 
human rights. 

But the government's 
seaming nervousness over 
internal threats - its nfficiai 
statements are marked by 
constant reference to the need 
to maintain stability at all 
costs - suggests that it is far 
from certain about keeping dis- 
affected workers and peasants 
in check. 

These concerns also co i n rid e 
with worries about a 
protracted transition to a new 
generation of leaders. 

Uncertainties about Mr 
Deng's health and the factional 
disputes that might follow his 
death are not the least of fac- 
tors at play in a complex politi- 
cal game now being waged an 
several fronts. 

Signs of weakness at this del- 
icate stage would risk the gov- 
ernment’s survival. The crack- 
down on political dissent, and 
on worker and peasant agita- 
tion is set to continue long 
after June 4. 


job at foe People’s University 
of China. Her apartment, 
which features a small shrine 
to her son’s memory, is under 
c on stant surveillance and her 
every move monitored by secu- 
rity personnel. 

“The shedding of my son's 
blood awoke me,” she says. “It 
was the loss of my son that 
touched my conscience as a 
naive Chinese intellectual. I 
was too passive.” 

If information is power in a 
system accomplished at 
restricting its spread, then 
Mrs Ding's campaign, which 
involves seeking to record 
details of every Tiananmen 
death, could he more threaten- 
ing to foe state than other 
forms of protest. 

Ever since the Tiananmen 
massacre, the most bitter con- 
troversy has swirled about 
exactly how many were hilled 
on Jane 3-4. The government 
claims victims numbered 
between 200-300, but Mrs Ding 
says foe figure was dote to 
2JBQ0. 

In a letter to last year’s 
United Nation's Conference on 
Human Rights, she urged that 
the Chinese government be 
asked to release lists of people 
MT|pf| awl wounded. She also 
demanded that an independent 
body be established to conduct 
an investigation of each vic- 
tim, and that China be obliged 
to provide support and com- 
pensation for the f am il i e s of 
those who perished. 

And finally, she is calling 
for the law to be use to punish 
those responsible for ordering 
the Mwn y to crackdown on foe 
demonstrators. 

There could hardly be a 
demand more likely to rile the 
authorities, since some of Chi- 
na’s most senior figures, 
including top leader Deng 
Xiaoping, were intimately 
involved in the decisions 
which led to the army firing 
on student protesters. 


UK draws back over rights 


By Simon Hofoerton 
hi Hong Kong 

The British government has 
drawn back from inflaming its 
delicate relations with China, 
rejecting calls for the establish- 
ment cf a human tights com- 
mission is Hong Kong and 
(buying visas to two leading 
Chinese dissidents ahead of 
today's fifth anniversary erf the 
Tiananmen massacre. 

Governor Chris Patten 
declined visa requests by Mr 
Uu Binyan, a distinguished 
Chinese journalist, and Mr 
Roan Ming, the former private 


secretary of Mr Hu Yadbang, 
China’s farmer communist 
party chief. A senior official 
said Hong Kong could not 
became a base for "subvert i ng" 
the Chinese government 

The UK government is expec- 
ted to formally reject the cre- 
ation Of a faraan rights aim- 
wbgrfon when it replies later 
this month to a Co mmons com- 
mittee report which endorsed 
foe idea. China has made it 
plain font such a commission 
would be abolished after its 
1997 takeover. 

Hong Kong and British gov- 
ernment officials indicated 


that Beijing’s “neuralgia” 
abou t Tiananmen and human 
rights had prompted the gov- 
ernment to seek different ways 
of achieving civil rights gains 
in Hong Kon g other than high 
pr ofile nomwrisBfong This has 
been rejected by liberal groups 
in the colony who believe their 
interests are being sacrificed in 
favour of better AngloChmese 
ties. 

Meanwhile, in the past two 
weeks there has been a change 
in attitude by Beijing on soda! 
and economic issues in Hong 
Kong. Mr Lu Ping China's top 
official on Hong Kong affairs. 


has suggested solutions to fin- 
ancing the colony’s multi- 
billion dollar airport project, 
the composition of Hong 
Kong’s top court post-1997, and 
the development of a container 
port 

Pro-Beijing legislators yester- 
day raised no objection to the 
government's request for funds 
to build a rntmei under Hong 
Kong harbour for the new air- 
port’s planned railway. The 
vote providing HKS715m 
{£61. 6m) without dissent was 
seen as evidence that a solu- 
tion to financing the airport 
was within sight 


NEWS: UK 


Helicopter deaths leave hole in intelligence operations 

IRA outdone by tragedy 


By Jiitvny Bums, 

Michael Cassell and 
Our Belfast Correspondent 

In human terms the helicopter 
crash on the MuJl of Kintyrd 
was a bigger blow to Northern 
Ireland’s security forces than 
any single terrorist act since 
the Troubles began 25 years 
ago. 

Beyond the grieving, a com- 
plex debate was under way 
about the precise implication s 
that such a loss would have on 
Britain's ability to deal effec- 
tively with the IRA. 

With the exception of the 
four RAF crew, all the victims 
were in impotent positions in 
mteiiigpnra - the most crucial 
area of counter-terrorist 
operations. 

They included 10 members of 
the Royal Ulster Constabulary 

Special Branch, nine army offi- 
cers linked to military intelli- 
gence, an d six members of the 
Northern Ireland Office, among 
them representatives of MI5. 

The most senior of the 
named victims was the RUCs 
assist ant chief c m tatahip Brian 
Fftzsimons. As bead of the 
RUCs *E‘ Department, Mr Fit- 
zsimons was responsible for 
coordinating intelligence gath- 
ering With Other a pmries and 
police units. His department 
controls specialist SAS-trained 
surveillance units and runs 
undercover agents. 

Also killed was Detective 
fThiaf Superintendent Maurice 
Neilly, head of Special Branch 
(Northern Region) which cov- 
ers one of the traditional 
Republican strongholds in the 
Londonderry area. Other 
regional middle-ranking spe- 
cial branch officers were killed. 

Combating the Loss caused 
by the crash will be high on 
the agenda at the next meeting 
of the low-profile Province 
Executive Committee, the body 
in charge of day-to day opera- 
tion of anti-terrorist activity. 

The committee comprises the 
RUC deputy chief constable 



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Sir Patrick Mayhew and Sir Hugh Annesley: said foe deaths were a huge blow to security efforts 


(operations), the army com- 
mander of Tawr? forces and high 
ranking intelligence officers. It 
was not clear last night if any 
of those killed were regular 
participants in meetings, but it 
seems likely. 

One senior RUC source 
spoke yesterday of the “tragic 
act of God" which “bad done 
what foe IRA had failed to do 
for 25 years”. This view was 
echoed by Mr Jeremy Manley, 
armed forces minister, who 
said: “They are going to be 
very difficult to replace.” 

Other senior anti-terrorist 
sources were more measured 
in their of the lon- 

ger term implications of the 
crash. One insisted that all foe 
tnfhrmarinn k n own to the vic- 
tims was “fully documented 

and rampi l ten se d ” 


Mr Fitzsimons was due to 
leave the RUC shortly to take 
up a post as chief of security 
for Ulster Bank. His deputy - 
who was not involved in the 
crash - and other officers of 
similar grade are understood to 
have been briefed about same 
key Special Branch operations. 

Many senior RUC officers 
have specialist anti-terrorist 
expertise. As one anti-terrorist 
source put it yesterday: “There 
will be a slight hiccup, but oth- 
erwise people should be able to 
rearrange their desks fairly 
smoothly.” 

Within the army, Northern 
Ireland operations have for 
years involved relatively 
short-term postings for intelli- 
gence personnel Replacement 
of those killed is also likely to 
involve minimum disruption. 


At MJ5, replacements would 
have been lined up by as soon 
as last night. 

In the coining days one of 
foe top priorities for people 
like Sir Patrick Mayhew, 
Northern Ireland secretary, 
and Sir Hugh Annesley, chief 
constable of foe RUC - who 
both said the deaths had been 
a shattering blow - will be to 
regain foe propaganda initia- 
tive from the IRA as the peace 
process enters a potentially 
crucial stage. 

The crash was not the result 
of sabotage, and no security 
was breached by the terrorists. 
But security sources fully 
expect the IRA will now test 
foe operational resilience of 
the UK’s counter-terrorist 
effort as it comes to terms with 
the tragic human loss. 


MoD defends 
the Chinook 


Risk managers 
incredulous 


By Bernard Gray 

The Ministry of Defence 
yesterday replied to criti cism 
that the crashed Chinook heli- 
copter had no “black box" 
flight recorder or all-weather 
radar to assist navigation in 
poor conditions. 

The MoD said all-weather 
radar, useful for large commer- 
cial jets flying at height to 
avoid large storms, would be 
“more or less useless" for mili- 
tary low-level helicopter 
operations. Any weather sig- 
nals would be confused by 
refl ected ground noise. 

It said Chinooks had pres- 
sure altimeters and downward 
radar sensors to estimate their 
height above ground, which 
should allow them to fly in 
poor visibility. 

The MoD said that few mili- 
tary aircraft carried flight 
recorders - other accident 
investigation techniques were 
considered sufficient to deter- 
mine the cause of any crash. 

But Mr William O’Brien, a 
lawyer who specialises in air 
accident claims for solicitors 
Russell, Jones and Walker, 
said the lack of a flight 
recorder would slow the inves- 
tigation. 

“It can be important, particu- 
larly in crashes such as this 


where the wreckage is widely 
spread and the airframe badly 
broken up,” he said. 

Mr O’Brien, who acted for 
the captain of the worst Chi- 
nook accident in the UK - 
when 45 oil-rig workers were 
killed off Shetland in 1986 - 
said a longer investigation 
would also slow tiie victims' 
families claims for compensa- 
tion. 

Apart from yesterday's crash 
there have been three bad acci- 
dents in UK-owned Chinooks. 
The Shetland accident was due 
to a mechanical problem which 
has been rectified. 

Poor weather was a factor 
when three servicemen were 
killed in a Chinook crash in 
the Falkland island in 1986. hi 
that accident, “white out” con- 
ditions made it impossible for 
the pilots to get their bearings. 

Another Chinook was lost in 
the Falklands a year later, 
with seven killed, due to a dif- 
ferent mechanical failu re from 
foe one that caused foe Shet- 
land crash. 

The MoD is happy with the 
helicopter and is considering 
ordering more for Royal Air 
Force transport needs. A mixed 
order, probably for Chinooks 
and EH-101 helicopters, manu- 
factured by Westland, is expec- 
ted to be placed nest year. 


By Richard Lapper 
and Anckew Jack 

The decision to fly a group of 
top security chiefs in one heli- 
copter has astonished leading 
risk managers and advisers 
working in the private sector. 

The Ministry of Defence said 
yesterday that there were no 
formal procedures governing 
the travel plans of senior mem- 
bers of the armed forces. Air 
travel was far safer than the 
alternatives and it had no 
immediate plans to introduce 
procedures in the light of the 
crash. 

Mr Laurence Law, national 
services director with Alexan- 
der & Alexander, the insurance 
broker which advises leading 
multinationals said: “I find it 
unbelievable. The basic thing 
you do is spread the risk." His 
company insisted that no more 
than two executive directors 
travelled on the same aircraft 

Mr Geoff Saunders, risk man- 
ager with RTZ, the raining 
company, said: “It is the num- 
ber one rule in corporate travel 
policy. You never double up on 
key personnel. You just 
wouldn't put the whole board 
on one ’plane. It is a well estab- 
lished principle at our com- 
pany and most corporations 
share the same philosophy.” 


Another company official 
said: “It’s just common sense. 
Yon don’t suddenly want a 
huge hole in your hierarchy." 

Mr Peter Lerwill, risk man- 
ager with British Airways and 
rhah-man of the Risk Managers 
Association, said: “This is just 
terrible from a risk-manage- 
ment point of view." 

Professor Brian Toft, risk 
analyst at Sedgwick (UK), an 
insurance broker which 
advises a number of leading 
UK companies, agreed. He said: 
“I And it absolutely incredible 
that they could put all these 
people in the same aircraft. I 
can think of no large company 
who would put all their key 
players on the same flight" 

At least one UK company 
has negotiated an arrangement 
with its insurers under which 
personal accident cover avail- 
able to senior employees is 
restricted if more than two 
executives travel on tire same 
flight 

Price Waterhouse, the 
accountancy firm, said it had a 
limit of 10 partners travelling 
on the same aircraft, or three 
senior executive partners. 

Standard (bartered, the UK- 
based international bank, said 
it had a policy that no more 
than two directors travelled 
together by air. 


Heseltine chides chambers 
for poor business support 


Mr Michael Heseltine, the 
trade and industry secretary, 
yesterday criticised chambers 
of commerce for providing 
inadequate support services for 
UK business. 

Mr Heseltine, speaking at the 
British Chambers of Commerce 
conference in Birmingham, 
urged chambers to get into 
partnership with other support 
agencies. 

Mr Heseltine topped a poll of 
the 500 delegates by Ernst & 
Young, accountants, as the 
best person to lead the UK He 
wan 23 per cent of the votes, 
compared with 16 per cent for 
Mr John Major and 14 per cent 
for Mr Tony Blair. 

He told the conference some 
of the larger chambers had a 
tradition of high-quality sup- 
port through foe provision of 
information and advice to com- 
panies. They had been drum- 
ming up export business since 
the days of Queen Victoria. 

But. he said, this was not the 
case in the newer industrial 
regions. “Outside the indus- 
trial heartlands the chamber 
network is patchy," he said. 
This meant that service was 
“something of a lottery”. 


Mr Heseltine plans 200 Busi- 
ness Links ail over Rngiartri by 
the end of next year - one-stop 
support shops offering informa- 
tion, advice, business health 
checks and training by pooling 
the local resources of the gov- 
ernment, the chambers and the 
training and enterprise coun- 
cils which deliver government 
training schemes. 

He warned the chambers not 
to be parochial. He said: "You 
cannot allow yourselves to be 
seen as watching on foe side- 
lines like a pack of vultures 
waiting to make a hearty meal 
of the carcass. I urge you now 
to join with your partners." 

The theme of support for 
small businesses was foe stron- 
gest to emerge from yester- 
day’s discussions. 

Mr Eric Swainson, vice-chair- 
man of Lloyds Bank, said: 
“Banks want and need indus- 
try to succeed." Mr Pen Kent 
executive director of the Bank 
of England, referring to the 
hostility between some compa- 
nies and their bankers during 
the recession, said: “In the 
next decade we want to get 
much more right than we got 
in the last one.” 


Both made dear that there 
was money available for small 
businesses. Mr Kent said: “The 
banks have the headroom to 
lend if they see opportunities. 
The shortage now is of 
demand.” 

Both urged companies to 
break away from dependence 
on foe overdraft Mr Kent said 
it was “a false economy - it 
sometimes looks cheaper, but 
it does not have the commit- 
ment of both sides of a term 
loan”. 

Mr Swainson said: “The 
more structured borrowings 
are, the easier it is to adopt an 
effective financial plan." But 
he came out against bank sup- 
port for companies through the 
long-term holding of equity. 

Sir Andrew Hugh Smith, 
chairman of the Stock 
Exchange, favoured encourag- 
ing local investors to invest in 
local companies. 

Calling for tax changes to 
stimulate the process, he said: 
“A capital gains tax regime 
which allowed an investor to 
ringfence his gains when he 
sold one share and reinvested 
in another would stimulate 
that sort of investment." 


Public 
sector staff 
‘take more 
sick leave’ 

By David Goodhart, 

Labour Editor 

Public-sector workers take an 
average of 10 days sickness 
absence per year compared 
with TA days In the private 
sector, according to a survey 
for the Confederation of British 
Industry. 

Overall absence through 
sickness costs employers £11 bn 
per year, says the survey. How- 
ever, it acknowledges that this 
could be an underestimate 
because it takes no account of 
lost production. 

If foe public sector were 
brought into line with the pri- 
vate sector, says the CBI, the 
saving for taxpayers could be 
£640m. 

But the survey also shows 
that while the cost of absence 
has fallen by £2bn, from £i3bn 
in 1992, the number of working 
days lost is actually up by 5m 
to 166m. This reflects the 
growth in part-time work and 
the fact that the cost of provid- 
ing cover is lower for part- 
timers. 



4 


NEWS: UK 


piNAwriAt. HMg WEEKEND JUNE 4/JUNE 5 1994 


Labour says Treasury will broaden VAT 


By Kevin Brown, 

Political Correspondent 

Labour yesterday put tax back 
at the centre of its European 
election campaign as party 
leaders warned activists not to 
believe opinion poll forecasts 
of a landslide victory. 

Amid growing fears of com- 
placency among party workers. 
Mr Jack Straw, Labour’s cam- 
paign manager, dismissed a 


Gallup poll potting the party 
33 points ahead of the Conser- 
vatives. 

Mr Straw said Gallup had “a 
history of being the most 
erratic poll". 

The poll, published in the 
Daily Telegraph, suggested 
that Labour’s strategy of pres- 
enting the election as a refer- 
endum on the government’s 
record was succeeding. 

Labour officials were keen to 


play down the survey because 
of fears that it mi ght encour- 
age Labour voters to stay at 
home or cast a tactical vote far 
the Liberal Democrats. 

hi a dear attempt to refocus 
the campaign on domestic 
issues, after a week dominated 
by exchanges on tile futu re of 
the national veto. Labour 
accused the Tories of p re p aring 
to extend value added tax to 
zero-rated goods. 


The accusation followed BBC 
radio interviews in which Mr 
John Major and Mr Kenneth 
Clarke, the chancellor, refused 
to rule out imposing VAT on 
food, public transport, chil- 
dren's clothes, newspapers, 
books and periodicals. 

Mr Clarke said such issues 
were a matter for the Novem- 
ber Budget Mr Major said the 
government had “no plans” to 
extend VAT, but "these are 


matters the chancellor has to 

consider”. 

Mr Brown told an election 
press conference: "Having 
made absolute, unconditional 
and personal promises at {pre- 
vious] elections, Mr Major and 
Mr Clarke are now attempting 
to change ground and run 
away from yet another promise 
betrayed. 

"We will not allow the Con- 
servative party to escape their 


election promises. They must 
tell us now whether they 
repeat their pledges not to 
extend VAT, or whether they 
have phmri/mpti them.” 

Mr Brown said Labour 
"stands by and repeats its 
pledge sot to extend VAT to 
food, children's clothes, public 
transport or to books and 
newspapers”. 

Mr Malcolm Bruce, liberal 
Democrat trade and industry 


spokesman, said it was "very 
unwise" for Mr Brown to sug- 
gest that Labour would never 
extend VAT. 

fie sai± “It is the sort of 
word politicians sometimes 
fin d comes home to haunt 
thpnw. we are certainly not pro- 
posing to extend VAT. We 
don't have any great enthusi- 
asm for extending the base. 
But it would he dishonest to 
say it will never happen.” 


Backing 
for Euro 
sceptic 
strategy 

By Kevin Brown, 

Pofitical Correspondent 

Mr John Major’s Euro-sceptic 
election strategy was strongly 
backed by the Tory right yes- 
terday as ministers launched a 
fierce attack on the patriotism 
of opposition leaders. 

Mr Michael Howard, home 
secretary, said the co n cep t of a 
multi-speed European Union 
was "a coherent policy around 
which the Conservative party 
can unite with enthusiasm”. 

Mr Howard is the first cabi- 
net rightwinger to comment 
publicly on the multi -speed 
concept since it was launched 
last month by Mr Douglas 
Hurd, foreign secretary. 

His harfdwg follows earlier 
endorsement of the strategy by 
Mr Kenneth Clarke, chancel- 
lor, and Mr Michael Heseltine, 
trade and industry secretary, 
the leading cabinet pro-Euro- 
peans. 

Cabinet support for the 
strategy reflects the judgment 
of Conservative Central Office 
that attacks on Europe offer 
the best hope of avoiding elec- 
toral disaster on Thursday. 

However, there is consider- 
able unease among backbench 
pro-Europeans about the 
extent to which the prime min- 
ister has adopted the tone of 
the party's Euro-sceptic wing. 

Pro-Enropean MPs will 
remain largely silent until 
polling day, but there may be 
protests after the election, 
especially if the strategy fails 
to prevent significant Conser- 
vative losses. 

Speaking to Conservatives 
in Hythe, Kent. Mr Howard 
combined support for the 
prime minister's call for a 
multi-speed Europe, one with 
"variable geometry", with a 
coruscating attack on opposi- 
tion plans for a “European 
superstate”. 

He said the apposition 
parties had "lost confidence in 
the British people to pass their 
own laws and to govern them- 
selves. Nothing else can 
explain their newly found 
enthusiasm to rush headlong 
into a federal European state”. 

Labour and the Liberal Dem- 
ocrats were offering "a 
one-way ticket on the federal 
express to a European super- 
state” which would “progres- 
sively spell the end of self- 
government, and of nation- 
hood itself. 

Mr Jack Straw, Labour’s 
campaign manager, sold the 
Conservatives were "telling 
ever greater lies". Mr Paddy 
Ashdown, the Liberal Demo- 
crat leader, said the prime 
minister was trying to appeal 
to the “rabid" right 


Red rose party blooming with confidence 

James Blitz finds local activists astonished at the change in fortunes 



EUROPEAN 

ELECTIONS 

June 9 and 12 


Mr Roy 

Kennedy. 
Labour's Euro- 
pean campaign 
organiser in 
the east Mid- 
lands, can 

hardly believe 
his hide. Until 
a few months 
ago he and his 
fellow activists 
believed 
Labour had no 
chance of win- 
ning the redraws constituency 
of Leicester in Thursday’s 
European elections. 

They believed recent bound- 
ary changes had converted a 
safe Labour seat to an equally 
safe Tory one. Local Conserva- 
tives thought they had 
acquired a nice working major- 
ity of 60,000. Even the sitting 
Labour MEP, Ms Mel Read, 
decided to seek election in the 
neighbouring constituency of 
Nottingham, believing that she 
had no hope in Leicester. 


But this week Mr Kennedy 
was ebullient “It is becoming 

inc reasing l y clear that WO are 
going to win here," he said, 
running through canvass 

ret u rns tn W< campaig n ry ffiry . 

With less than a week to 
palling day, Mr Kennedy’s con- 
fidence is typical of Labour 
campaign managers «nd candi- 
dates nationwide, hi many of 
the party's target seats. Labour 
activists believe they are on 
the verge of victories that 
would have seemed unthink- 
able this Hwip last year. 

In Cumbria, a tight Tory 
marginal. Labour’s Mr Tony 
Cunningham predicted tots 
week that be would win with a 
10.000 majority. In Hertford- 
shire Mr Andrew Dodgson, 
Labour campaign manager, 
was yesterday confident cf vio- 
tory, saying there were 
repeated signs of Tory voters 
moving to the Labour camp. 


SNP hopes its 
May bandwagon 
will keep rolling 

James Buxton on the north-east 
focus of the Scottish campaign 


There are eight 
Euro-constituencies in Scot- 
land but frontbench spokes- 
men are focusing most of their 
energies on just one of them: 
North East Scotland. 

This is because three parties 
could win it: Labour, which 
took the seat from the Conser- 
vatives in 1989; the Scottish 
National party, which Labour 
overtook on that occasion by 
only 2,613 votes; and the 
Tories, whose share of the vote 
was less than 3 percentage 
points behind that of the SNP. 

A victory for the SNP would 
have special significance. On 
the likely assumption that the 
party retains Highlands and 
Islands, where Mrs Winnie 
Ewing took more than 51 per 
cent of the vote in 1989, victory 
would give the nationalists a 
second Scottish Euro-seat 

It could also boost an SNP 
bandwagon that began rolling 
in the regional council elec- 
tions last month, in which the 
party came second, and give it 
a good chance of winning the 
by-election in Monklands East 
caused by the death of John 
Smith. 

The latter would entail 
wiping out a Labour majority 
of 15,712. But the SNP has 
poured in activists to achieve 
such surges before - ft took 
the Labour safe seat of Glas- 
gow Go van at a tor-election in 


1988. It also won a regional 
council seat in the constitu- 
ency in May. 

As a response to the SNP 
threat Labour is likely, early 
next week, to call the by- 
election on June 30, the earli- 
est date possible. 

On Thursday night it 
selected Mrs Helen Liddell, a 
former secretary of the Scot- 
tish party, as its candidate. 

On the campaign trail in 
Aberdeen, Mr Allan Macart- 
ney, the SNP candidate for 
Neath East Scotland, says the 
party has “a Mexican wave 
effect” running in its favour in 
the constituency, which runs 
from Peterhead down to the 
river Tay, ami includes both 
Aberdeen and Dundee. 

“I thought we would have to 
crank the party up again for 
the Euroelections but because 
of our success in the regional 
elections they're raring to go,” 
be says. 

The party believes Mr 
Macartney will win the seat 
with a 5 per cent to 7 per cent 
margin over Labour if people 
vote as they did in the regional 
elections. But the psephdogy 
is complex and Labour claims 
the regional results suggest It 
will win by 1 point. 

Mr Macartney is a strong 
candidate. A vice-convener of 
the party, he is not cos of its 
tub-thumpers: he is a political 


Even in Bedfordshire and 
Milton Keynes, the Labour 
team is confident of success 
against Mrs Edwina Currie, the 
high-profile Tory candidate. 
"We are about to have the first 
Labour representative in this 
part of the world since 1979," 
said Mr Janos Toth, local 
Labour organiser for the Euro- 
pean elections. The party has 
never been in a better position 
thaw this." 

The optimism may be pre- 
election bravado. But in all 
these constituencies. Labour 
activists who were cautious 
during the local elections are 
po inting to the same factors 
p ushing the vote their way. 

By attacking the government 
on AimaiHit! ianiafi, Labour hno 

focused the electorate's mind 
on unpopular Tory policies. 

In Milton Keynes, for exam- 
ple, Labour has concentrated 
on attacking tax rises which 


affect middle-class voters. In 
Cumbria, the party has high- 
lighted job losses in defence- 
related industries. 

Labour h? s also underlined 
the Conservatives’ disarray on 
Europe. In several places 

Labour r-andiriatmt Lutpp fnlran 

a more anti- E uropean line to 
win the votes of rightwing 
Tories, but Labour has grrinari 
from the impression of a con- 
sistent line at national leveL 

Yet although Labour is cer- 
tain to take a handful of seats, 
two factors may stop the party 
making the more sweeping 
gains needed to prove it can 
win the next general election. 

First Labour must ensure 
that it can get its supporters 
out to vote in what has been a 
lacklustre election campaign 
In some constituencies, Tories 
believe the turnout on pulling 
day may save them from 
defeat “If we can get out just 


half of our people on the day, 
we will win,” said Mr Paul 
KTHfi, Tory ag put in Cumbria. 

Labour officials are also con- 
cerned that their supporters 
may not bother to vote because 
they are so confident of vic- 
tory. According to one constit- 
uency agent yesterday, an 
opinion poll showing Labour 
with 54 per cent of the vote 
was "as much a matter of con- 
cern as congratulation.” 

Secondly, there is lingering 
uncertainty over whether 
Labour can throw off th«* Lib- 
eral Democrat challenge where 
it exists. 

The result tn Hertfordshire, 
where the parties are locked tn 
a close three-way contest will 
be an important test of 
whether Tjitotr an withstand 
that pressure. Throughout the 
last few weeks Mr Peter Trus- 
cott, the Labour candidate, has 
Mad to TiraWItop that he is 


the Tp*in challenger to the 
Tories. But yesterday the Lib- 
eral Democrats were not giving 
up hope, claiming that disaf- 
fected Tories were more likely 
to come over to them. 

In neighbouring Bedford and 
Milton Keynes, campaigners 
for Mrs Currie also believe that 
the Liberal Democrats could 
foil a Labour victory. "Edwina 
can afford to come second in 
every part of the constitu- 
ency," said one of her support- 
ers last week. "But she could 
stiD vrintf Lahore feite to come 
first in more than a third of 
the seat.” 

One thing is clear: there are 
few signs of Tory party work- 
ers going out to battle with the 
challenge from Labour. As Mr 
M lcb ae t Cufflin, president of 
the Tory Euro-association in 
Leicester, put it "We are find- 
ing it difficult to motivate our 
workers in toe same way we 
did for the last general elec- 
tion. It is a very different ball- 
game this time.” 



Dr Allan Macartney deft), SNP candidate for North East Scotland, and SNP party leader Alex Salmond campaigning in Fraserburgh 


scientist who tutors Open Uni- 
versity students and tends to 
eschew shallow debating 
points. 

He says Labour, in sptte of 
having seven of the eight Scot- 
tish Euro-seats, has not acted 
in Scotland's interests at Stras- 
bourg. Tm appalled that the 
socialist group in the parlia- 
ment voted to allow Spanish 
fish boats access to the North 
Sea," he says. 

The SNP has an advantage 
in European elections, he says, 
because opinion polls show 
most Scots believe Scotland 
would be better off if it were 
directly represented in Brus- 
sels. “We can only interpret 
that .as meaning they would 
like Scotland to be indepen- 
dent" 


His Labour opponent Mr 
Henry McCubbin is a hard- 
working MEP who shows bun- 
dles of European legislation for 
which he has campaigned, and 
can point to membership of 
parliamentary committees rele- 
vant .to life in the north-east, 
such as fa r r nto g , 5 # n g , and 
health and safety (for the oil 
industry). 

On the big European issue 
he is not afraid of raising 
the issue of federalism, but 
sees it as "a pooling of sover- 
eignty, not as a loss of sover- 
eignty”. 

The Tory candidate, Mr Ron 
Harris, appears quietly upbeat 
in spite of the fact that 
national opinion polls are run- 
ning heavily against his party 
and it is haunted by a disas- 


trous performance in the 
regional elections. 

A thoughtful businessman 
from Montrose and a former 
professor of chemistry, Mr Har- 
ris believes Tories in the con- 
stituency are returning to the 
fold, haring made their protest 
about higher taxes and value 
added tax art domestic fuel last 
month. 

"They are saying this toga 
it’s a national election and we 
need to vote on national issues. 
They’re telling me: 1 don’t 
know where you stand but Tm 
against federalism and against 
anyone who wants to build 
more power into Brussels’." 

He believes Mr John Major's 
message on a multi-speed 
Europe has found a strong 
response. 


Labour privately fears that 
toe collapse of the Tory vote in 
the regional elections could be 
replicated to its disadvantage 
on June 9, with disgruntled 
Tories going over to the SNP. 

The Liberal Democrats, 
whose candidate Mr Simon. 
Horner is a journalist, won 
almost as many votes in the 
regional elections as the 
Tories. Each party polled about 
W per cent of the vote. 

But, haring taken only 6 per 
cent of the vote in the last 
European election, they are not 
regarded by the other parties 
as serious contenders for vic- 
tory. 

“IT the tactical vote goes to 
me from the Liberal Demo- 
crats, then I should win,” says 
Mr Macartney. 


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Race for speed record 


BBC makes ‘final 9 
offer in dispute 


resume a series of one-day 
strikes. 


By John Griffiths 

M cLare n, the grand prix and 
electronics group, yesterday 
became locked with rivals hi a 
technology b attle to take the 
world land-speed record 
beyond the sound barrier. 

Mr Ricbard Noble, the cur- 
rent holder, said that Caatrol 
IT Group and other UK compa- 
nies had joined to help him 
build a rival to a McLaren car 
intended to travel at 1,000 
Knifes per hour. It is being pre- 
pared by McLaren to break the 
633mph record set in Nevada's 
Black Bock desert 10 years ago. 

The rivalry has led to a tech- 
nology breakthrough for the 
Ministry of Defence’s Proof and 
Experimental Establishment at 
Pending, South Wales. 


RAF officers from the estab- 
lishment were at the Society of 
Motor Manufacturers and 
Traders' London headquarters 
yesterday to demonstrate 
equipment which generates 
precise data on toe dynamic 
behaviour of vehicles travel- 
ling at very high speeds 
in close proximity to the 
ground. 

The MoD said the system 
and the information it was 
capable of generating would be 
sold to commercial customers. 

The equipment was used to 
accelerate a model of Thrust 
SSC, the intended record 
vehicle, from standstill to 812 
mph in eight-tenths of a second 
aver file establishment’s 1-fflcm 
rocket test sledge track, modi- 
fied for the first time to simu- 


late an ordinary road surface. 

The Noble team also 
unveiled the twin Rolls-Royce 
Spey jet engines which are to 
propel the 54ft car and which 
will provide it with 100,000 
horsepower for a design speed 
of at least 85Qmph. 

Mr Noble, whose first record 
attempt took more than seven 
years to complete, said 
McLaren, in spite of its much 
larger resources than the ctm 
Thrust project, was likely to 
find breaking the reconi "a lot 
more difficult than it might 
appear". 

The Thrust car is to start 
construction next week and is 
due to make its first runs by 
August next year - a similar 
timescale to McLaren 's "Mav- 
erick” project 


By Robert Taylor, 

Labour Correspondent 

The BBC yesterday unveiled 
its "final" offer to resolve the 
Industrial dispute with staff. 
The three unions concerned 
said they would give their 
response by Tuesday. 

The BBC presented the pack- 
age after Sots days of discus- 
sions with the unions at the 
offices of Acas, the conciliation 
service. 

Union negotiators told the 
BBC they wanted to consult 
their officials before deciding 
whether to ballot staff over 
the offer or reject it and 


The BBC said in a statement 
that it had been “cons tructi v e " 
and had sought "to address the 
unions’ concerns". 

The BBC insisted yesterday 
it had not backed down on its 
two main objectives, which are 
to devolve conditions of service 
agreements to lower levels of 
management and to maintain 
the link between pay and per- 
formance. 

If the unions reject the 
corporation's offer plans for 
farther stoppages next Thurs- 
day and Sunday remain in 
place. 


Walker ‘pretended dead friend carried out 


of conspiring to falsity died a few months earlier, Mr 

-Rook said. 


By John Mason, 

Law Courts Correspondent 

Mr George Walker, the former 
chair man of the Brent Walker 
property and leisure group, 
pretended that a HmA fr iend 
had best responsible for trans- 
actions in an attempt to head 
off inquiries into the fraudu- 
lent inflation of his company’s 
profits, it was alleged at the 
Old Bailey yesterday. 

Mr Walker also tried to 

HManffP himself from transac- 


tions at the centre of the 
alleged fraud when first ques- 
tioned by the Serious. Fraud 
Office, Mr Peter Rook QC, pros- 
ecuting, told the court 

The prosecution alleges that 
Mr Walker and Mr Wilfred 
Aquilina. a former Brent 
Walker finance director, fraud- 
ulently inflated the profits 
of both the Brent Walker group 
and it9 media division by 
£ttL3m between 1984 and 1987. 

This was done by falsely 

wintering film rights had been 


sold when Brent Walker later 
secretly reimbursed the 
purchasers of the rights, 
so fraudulently funding its 
own profits, the prosecution 
claims. 

The former Brent Walker 
chairman denies four charges 
of theft involving a total of 
£17m, two charges of false 
accounting and one of conspir- 
ing to falsity the company's 
accounts. Mr Aquilina denies 
one charge of theft, three 
of false accounting and one 


accounts. 

Mr Rook said that after press 
articles questioned toe validity 
of some of the transactions in 
which rights were sold to Uni- 
versal Talent Management 
(UTM), Mr Walker told his 
auditors that these had been, 
carried out by Mr John Love, a 
business as sociate . 

In fact, Mr Love, who had 
looked after toe administration 
of a Bahamas-based trust for 
Mr Walker and bis family, had 


"It appears he bad nothing to 
do with Universal but on the 
basis that dead men don’t talk, 
it was easy to attribute UTM 
transactions to him,” he said. 

UTM was one of three appar- 
ent purchasers of the rights, 
the prosecution says. When 
questioned by the Serious 
Fraud Office about transac- 
tions concerning a second pur- 
chaser, a company called 
Alberta, Mr Walker sought to 


Tories at 
record 
low in 
Scotland 

An opinion poQ in Scotland 
today shows a 43-point Labour 
lead over the Conservatives, 
who scared a record low of 10 
per cent. 

The System Three poll m 
today’s issue of The Herald 
newspaper in Glasgow 
suggests Labour has gained 
nine points in toe space of a 
month, to 53 per cent, with the 
Tories down four points. 

The poll shows the Scottish 
National party still in second 
place with 24 per cent, a fell 
of three points from last 
month, with the Liberal Demo- 
crats an 12 per cent, down two 
points. 

The only party rated lower 
than the Tories is the Greens - 
at. an unchanged 1 per cent 
The survey was conducted 
nmnng 983 people in 38 Scot- 
tish constituencies from May 
26 to 81. 

Blair pledges 
parliament 

A Labour government would 
establish a Scottish parliament 
with “strong" powers over 
economic development and 
domestic affairs, Mr Tony Blair 
said in Dundee yesterday. 

Sir Blair, the most likely 
successor to John Smith as 
Labour leader, said a Scottish 
parliament was "more vital 
than ever to ensure that Scot- 
land’s voice Is heard in 
Europe”. 

nig comments confirm that 
devolution remains a high 
priority for Labour, in spite of 
toe death of Mr Smith, who 
was one of the strongest 
supporters of a Scottish parlia- 
ment 

Gas customers to 
pay at post office 

British Gas customers will be 
able to pay their bills free of 
charge at post offices under a 
new arrangement announced 
yesterday. 

Post Office Counters said 
18m gas customers would be 
able to make transactions 
through Girobank’s Transcash 
service. 

A new plastic card for gas 
payment plan customers to 
speed service at post office 
counters was also unvoted. 

Species treaty 
is ratified 

The UK yesterday ratified an 
international treaty on protect- 
ing species, two years after the 
convention was drawn up at 
the Rio Earth Summit 
Mr John Major, the prime 
minister, announced the ratifi- 
cation at an environmental 
awards ceremony in London to 
mark the United Nations’ 
World Environment Day. 

Prince Philip, the Duke of 
Edinburgh, who is president of 
the Worldwide Fund for 
Nature, received one of S3 
awards made by the UN’s 
environment programme this 
year. 

Record price paid 
for Victorian art 

A portrait by the Victorian 
painter William Holman Hunt 
of his son Hilary sold for 
£969,500 at Christie's yesterday, 
a record for this Pre-Raphaelite 
artist The previous best was 
£4&000 in 1973. 

At Christie's Sooth Kensing- 
ton “African Children” by 
David Sheppard, depicting two 
young zebra, sold for £120,600 - 
a record for tills artist - at 
Christie’s first sale exclusively 
devoted to wildlife art 

Lord Blanch 

The former Archbishop of 
York, Dr Stuart Blanch, died 
yesterday after a long illness. 
He was 76. 

Lord Blanch, who was made 
a life peer in 1983, was arch- 
bishop from 1975 to 1983. He 
was a former Bishop cf Liver- 
pool 

Dr John Habgood, his succes- 
sor, paid tribute to Lord 
Blan c h, saying ids death would 
cause "great sadness” through- 
out the diocese. 


deals’ 

distance himself from any 
direct Involvement in the 
deals, Mr Rook said. 

He told the SFO he knew 
nothing of a £4m loan from 
Brent Walker to Alberta or 
that his company had frilly 
guaranteed it However. Mr 
Rook showed the jury docu- 
ments signed by Mr Walker 
which be said, demonstrated 
that the loan bad been guaran- 
teed. 

The trial continues on Mon- 
day. 



■^ 1 , 



FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


NEWS: UK 


Home-loan figures confirm slowdown 


ByAfeon Smith . 

Growing concerns about a slowdown 
in the housing market after April's 
tax increases were confirmed yester- 
day by figures on mortgage lending 
from the Bank of England. 

The statistics also highlighted a 
striking drop in -new net mortgage 
lending a figure which , takes into 
account repayments of principal - 
being undertaken by banks. 

Seasonally adjusted figures showed 


a 14 per cent drop in new net mort- 
gage l ending , to £LBlbn in April from 
£L37bn in March, and a 9 per cent fall 
in new gross lending over the same 
months, to £L59hn from ffi.Mbn. 

While the statistics showed a fall in 
new lending undertaken both by 
banks and by building societies, the 
steepest drop was in banks' new net 
lending. That fell by more than 50 per 
emit - to £283m from £646m in March. 

The figures also showed the return 
to the mortgage market of specialist 


lenders, such as centralised lenders 
which do not operate through branch 
networks. The net Wipin g they under- 
took during April totalled £266 m, 
while in the previous month it had 
amounted to only £Um. 

Mr John Wriglesworth. building 
society analyst at stockbrokers UBS, 
said that banks' apparent "lack of 
aggression" in this area was surpris- 
ing, given that margins were still 
wide and were sufficiently attractive 
to bring specialist lenders. 


The total number of loans approved 
in April Tell back on both seasonally 
adjusted and non -seasonally adjusted 
bases to below the equivalent figure 
for last year. 

After seasonal adjustments, some 
79,000 mortgage loans were approved, 
compared with 83,000 loons to April 
1993. The total value of loans 
approved totalled £4.60bn in April, 
while in the corresponding month last 
year it amounted to £4.76bn. 

Commenting on the figures, the 


Council of Mortgage Lenders, which 
represents banks, societies and other 
lenders, underlined the warning given 
to the government on Thursday by 
Halifax Building Society, the UK’s 
largest mortgage lender. 

Mr Peter Williams, the council's 
head of research and external affairs, 
said it was particularly important 
“that income support arrangements 
for the payment of mortgage interest 
are left intact and that interest rates 
remain stable". 


Three ini 



by parcel bombs 


8 laii 

parliament 


& -5 



By. Jenny Luesby 

Three people were yesterday, 
injured by pared bombs sent 
to five companies involved in' 
the meat trade. Police believe 
the attacks were Unite d and 
may have been the work of ani- . 
mal rights activists. 

Four bombs exploded yester- 
day morning in Kent, Glou- 
cestershire, Oxfordshire and 
Edinburgh, and a fifth was dls-. 
mantled. 

Nobody had claimed respon- 
sibility for the bombs by yes- 
terday evening. 

The bombs, which arrived in 
12-inch cardboard poster tubes, 
were sent to two meat- 
transporting companies, a 
ferry fine that transports ani- 
mals, a pig breeding, company 
and a chicken breeding plant 

Gloucestershire ' police 
warned the meat-trade to be 
extra vigilant and to contact 
police if they across any- 
thing suspicious. 


Mr Robin Webb, spokesman 
for the Animal Liberation 
-Front, said yesterday that he 
was sure the devices were sent 
by the Justice Department, a 
group of animal rights activ- 
ists. Last year the group sent 
13 parcel bombs to scientists 
and suppliers of animals to lab- 
oratories. 

“The group appears to con- 
centrate each wave of devices 
on a specific area of atiimai 
abuse," Mr Webb said. 

The Research Defence Soci- 
ety, a pressure group drawn 
from university and commer- 
cial laboratories, which says 
that animals are essential for 
medical research, has called cm 
Mr Michael Howard, the home 
secretary to give “urgent con- 
sideration” to the Justice 
Department group. 

The group has not yet been 
publicly identified with any 
Individuals, although police 
have coordinated, their efforts 
to track the group down. 


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Counties 
review 
‘is policy 
fiasco 9 

By John Autfwra 

England's local government 
review Is a "policy fiasco" 
driven l^ r ,“doetrjnalre" cohf 
mitmeota, says a -report by six 
academics. 

They say the review Is pro- 
ceeding "because enyitiTnilng 
with it is seen by the govern- 
ment as less poliqchQy embar- 
rassing Ham stopping It”. 

The independent Local Gov- 
ernment Commission, chaired 
by Sir John Bonham, has to 
recommend alternative struc- 
tures tor rum-metropolitan 
authorities to the Department 
q£ the 

Mr John Gammer, the envi- 
ronment . secretary, prefers 
an-purpooe,"unftaflT authori- 
ties as replacements for the 
present two-tier system of 
counties end districts. 

Mr Steve Leach of Birming- 
ham University's Institute of 
Local Government Studies, 
who edited the report, said: 
"The oomiailmton appears to he 
driven by a doctrinaire com- 
mitment to the unitary concept 
for its own sake. This, leads, to 
it having to argue the case for 
a size of authority which will 
often new*** ; reflect local com- 
munity identity nor be able to 
carry out stnfthEfctancttmA” 
The academics say that the 
strongest. options, using Mr 
Cummer’s own criteria, are* 
"often the two-tier status quo, 
or a county- wide' unitary 
authority” with, genuine devo- 
lution of power to local com- 
munities. • 

The Local Government 
Review: Ej^j Issues and Choices. 
INLOGOV, University of-JHry 
mzngham, Ed&baston, Birming- 
ham, B1S2TT. £11 


Tories 
excluded 
in hung 
councils 

By John Authors 

Conservatives have been 
excluded from power in most 
at fltocoundl*. where no party 
won an trenail majority in last 
monfh’i locddefioia. 

, In Loudon tour hung author- 
ities, previously Tory* 
controlled, are nm by opposi- 
tion parties. Barnet in north 
London ta nm by a Labour- 
Liberal Democrat coalition, 
with a Labour leader. Bexley 
and Redbridge are bothrnn by 
Labour minority administra- 
tions, while Liberal Democrats 
are running Harrow as a 
minority. 

Outside the capital. Labour 
minority administrations are 
in place in Liverpool, Oldham, 
and the West Yorkshire dis- 
tricts at Calderdale and Kfrk- 
lees, white a Liberal Democrat- 
Labour administration, with a 
Liberal Democrat leader, runs 
the previously Tory-controlled 
Southend. . Epping Forest in 
Essex, also previously Tory- 
controlled, has shared commit- 
tee chairs between Labour, 
residents* groups, and liberal 
D e mocrats. 

The magazine Local Govern- 
ment Chronicle has also found 
several examples of collusion 
between liberal Democrats 
and Conservatives. In Lanca- 
shire both Rochdale and 
PentQe are run by Liberal 
Democrat administrations 
with Conservative support, 
while the . two parties have 
split committee chairs 
between them on Broadlands 
district coundLNmfblk. 

But Liberal Democrats and 
Tories have foiled to agree in 
the formerly Lab<rar-controDed 
London borough of Lambeth. 







de:^ 


S:i* 


&+• 


Gloo 
for 

By Jenny Luvtby 

Kurt Salmon Associates, the 
independent advisers to the UK 

government on the planned 
Hualoo textile plant near Bel- 
fast, last month issued a state- 
ment forecasting sharp 
declines in European produc- 
tion of the fabrics that will he 
made at the £l£7m plant 

Mr Tim Smith, the economy 
minister -for Northern Ireland, 
said this week that ESA had 
been employed .by Northern 
Ireland’s Industrial Develop- 
ment Baud to provide “spe- 
cialist marketing and. produc- 
tion/technical advice” on the 
plant, which is to receive SBttn 
in government grants. 

Mr Smith said KSA had cafr 
daded.Sa.Us repost for the IDB 
that the market for the Hualon 
plant's products was growing. 
The cont ents ci. ESA’s report 
to the IDB are not publicly 
available and are bound by 
customer confidentiality. 



The report was not part of 
the project appraisal - It was 
commissioned after the UK 
government had approved the 
project, and. after the European 
Commission had announced a 
formal Inquiry into the pro- 
posed plank KSA said yester- 
day that it had finished the 
report last December, a year 
after the UK submitted the 
Huakm proposal to the Com- 
mission for approval 

Lost month, however, KSA 
issued a .statement £n response 
to media inquiries about the 
plant, in which it forecast a 22 
per cent foil in synthetic fabric 
production in the European 
Union between 1991 and 2001, 
and a fall of 26.4 per cent In 
cotton fabric production. 

These forecasts were initially 
produced by KSA last year, in 
a special report on the textiles 
industry, .and were published 
by the consultancy before it 
undertook the report for the 
IDB on the Hualcm plant 


Bank adjustment plan criticised 


ByGffilanTett, 

Economics Staff 

A note of controversy has 
emerged over UK monetary 
statistics after the Bank of 
England announced yesterday 
that it would change its system 
pf seasonal adjustment next 
month. 

City analysts and banking 
officials fear that revising the 
monetary figures monthly, 
instead of six-monthly, could 
add more uncertainty to the 
monetary series and under- 
mine public in the 

data. 

The Bank argues that 
monthly revisions to its esti- 
mates wifi be relatively small 
and insists that the updating' 


system will provide accurate 
data more quickly. 

The British Bankers’ Associ- 
ation said it had reservations 
about the new system, which is 
being forced an it as a result of 
the Bank's changes. It admit- 
ted that the system would pick 
up seasonal trends more 
quickly, but said it would 
make it harder for City ana- 
lysts to produce forecasts. 

The association added: “The 
big disadvantage, especially to 
commentators who are expec- 
ted to analyse the latest 
month's figure, is that they 
will not necessarily know 
where they are starting from, 
since the previous month’s fig- 
ures will have been, revised - 
perhaps significantly." 


These fears were echoed by 
City analysts. Mr Michael 
Saunders, UK economist with 
Saloman Brothers, said: “I 
would rather that [the revi- 
sions] were done every year, 
not every six months. Doing it 
every month will add more 
uncertainty." 

Mr Bob FanneH economist 
at the Building Society Associ- 
ation. said: “In my own view 
this is an unhelpful develop- 
ment. You get to a stage where 
the markets are reacting to 
second revisions and it 
becomes more remote from the 
real economy." 

Bank officials Insist these 
fears are exaggerated. After 
running test dummies of the 
new system for the past two 


years, it predicts that revisions 
will initially change MO, the 
narrowest measure of money 
supply, by 0.3 of a percentage 
point a month. M4, the broad- 
est measure of money supply, 
is likely to change by O.l per- 
centage point a month. 

“Instead of having one big 
revision every six months, we 
have smaller revisions more 
regularly - the advantage is 
that we can arrive at the final 
resting place quicker,” the 
Bank said. The only monetary 
figure that will not be updated 
will be December's M0, which 
is highly volatile due to Christ- 
mas spending, it added. 

The first data that will incor- 
porate the nhangws wDl be M4 
figures on June 20. 


Bids to supply 
trains invited 


By Chartea B atch elor, 
Transport Correspondent 

London Underground has 
Invited four companies to bid 
to supply it with new rolling 
stock for its ageing Northern 
Line, Ibe contract wifi provide 
a test of the government's com- 
mitment to involving private- 
sector finance in public-sector 
transport projects. 

The four are ABB Transpor- 
tation, a Swiss-Swedish com- 
pany; Bombardier Eurorail a 
Canadian company which is 
supplying trains to Euro- 
tunnel; GEC Alsthom Metro- 
Cammell, a Franco-British 
group; and Siemens of Ger- 
many. 

They will be expected to file 
their bids by September. The 
contract will be awarded 
before the end of this year. 

The companies will have to 
frame their bids in a way 
which transfers sufficient risk 
to the private sector to meet 
tough Treasury guidelines. 

The guidelines are intended 
to ensure that financing deals 
involve more than simple 
staged payments by. in this 
case, London Underground, 
because funding could then be 
raised more cheaply by the 
government 


It emerged in March that an 
initial proposal from ABB to 
lease trains to London Under- 
ground had fallen foul of the 
Treasury rules. 

Strong pressure from Tory 
MPs. business organisations 
and government advisers led to 
agreement to hold a bid compe- 
tition. Rolling stock on the 
Northern Una - dubbed “the 
misery line" - is 30 years old. 

The original ABB proposal 
was to supply 100 trains for 
£440m with a 20-year mainte- 
nance contract worth another 
£3 00m. London Underground 
said it expected that new bids 
would be subs tantially differ- 
ent 

Delivery of the trains is to 
take place between one and 
three years. 

Apart from the Treasury 
guidelines, bids will have to 
provide benefits for travellers 
in the shape of extra capacity 
and speed. 

ABB has warned that failure 
to win the contract could 
result in the loss of 600 jobs at 
its Derby factory. It is, how- 
ever, just completing the deliv- 
ery of niwiiiar trains for the 
Underground’s Central Une so 
would be spared the cost of 
establishing a new production 
line. 


Raising environmental 

STANDARDS IS NOT PART OF 
OUR JOB. 

IT’S OUR WHOLE BUSINESS. 


At Waste Management 
International pic, we have only 
one business. The environment. 

Across the world, our people 
do just one thing. Make it 
cleaner and safer. 

We also put our money 
where our business is. 

So far, we’ve invested 
over £1 billion. 

Buying, and building 
and upgrading our plants 
and equipment, enhancing 
our technology, training 
and retraining our staff. 

And whatever we 
do, wherever we do it. 
Waste Management 
International strives to do 
it better. Why? Because 


Restoring landfills for 
leisure use in France and Italy. 

Introducing more efficient 
household waste collection 



raising standards is the key 
to our success. 

Whether it’s improving 
recycling techniques in.Sweden 
or the Netherlands. 

Upgrading facilities to turn 
waste into power in Germany. 


systems in Denmark and 
Australia. Helping companies 
to minimise waste generation in 
the United Kingdom. Building 



the world’s most advanced 
chemical waste treatment 
centre for Hong Kong. 

Opening the first industrial 
waste treatment facility in 
Indonesia. 

Remediating contaminated 
land in Scotland, Finland and 
Singapore. 

Cleaning the streets of 
Buenos Aires or cleaning up 
after rock concerts and major 
sporting events like the 
British Open Golf 
Championship and the 
Winter Olympics. 

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FINANCIAL TIMES 

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

Saturday June 4 1994 


Bond storm 
falls on UK 


**1116 role of the central bank Is to 
think - indeed worry - about 
inflation before ordinary people 
start talking about it.” These 
words were delivered by Professor 
Mervyn King, chief economist of 
the Bank of K"e* aT1<l . in 8 lecture 
to the Institute for Fiscal Studies 
this week. His remark has two 
important impHcattans: first, that 
if a central b ank (or finanre minis- 
try} is not prepared to court 
unpopularity during a recovery, it 
is shirking its responsibilities: sec- 
ond that ordinary people should 
worry about the possibility of 
higher short-term rates of interest 
before they hear their friends 
fcalMnp about hiflatinn ]q the UK, 
the time to start thmiring about 
what higher base rates might 
mean is now. 

The immediate background is 
what a Hollywood producer might 
call the bloodbath on Lombard 
Street Since just before the quar- 
ter point increase in the 
short-term rate of interest, 
announced by Mr Alan Green- 
span, chairman of the Federal 
Reserve, back in early February, 
band markets have tumbled every- 
where. The prices of 10-year bonds 
have fallen u per cent in France, 
9 in Italy, 8 in the DS and Ger- 
many and even 4 per cent in 
Japan. 

Tet nowhere in the group of 
seven industrial countries, except 
for Canada, have bonds been bat- 
tered as brutally as in the UK. The 
prices of 10-year gQts have fallen 
15 per cent, while yields have gone 
from a reasonably cheap &4 per 
cent, to an expensive &5 per cent, 
in these four months. Moreover, 
the decline in gilts has been 
accom pani ed by an almost identi- 
cal proportionate decline in the 
FISE-100, a greater fall than In 
the other G7 economies. 


Speculative positions 

Mr Greenspan was the irmtmtnr 
who dew the bond market butt. 
He did so by triggering a global 
margin call an speculators. While 
the unwinding of speculative posi- 
tions is, no doubt, the Immediate 
cause for the correction, more fun- 
damental reasons can also be iden- 
tified. These include faster than 
expected growth in the US, econ- 
omy, signs of recovery in conti- 
nental Europe, rising commodity 
prices (though from historically 
very low levels) and relatively 
rapid monetary growth in several 
economies, notably Germany. 

The most important implication 
is that no compelling reason can 
he found for expecting markets to 
regain what they have lost, at 
least in the near future. Before 
February, bond prices were being 
pushed up by the prospect of eariy 
capital gains. Now prices are 
being held up mainly by investors 
looting for yield. Unfortunately 


for borrow ers , their desired yields 
are painfully high. 

Against current rates o£ infla- 
tion, real yields run from same 3 
per cent in Japan to 6 pm 1 cent in 
the UK, presumably because 
investors have rather greater con- 
fidence that current rates of Infla- 
tion will last in Japan. Italy and 
pjwmita have higher nomi- 
nal yields than the UK 

Confidence gained 

The latter's poor reputation is 
hardly surprising. As Professor 
King notes, over the past quarter 
of a century, inflation in the UK 
has averaged 9 pea cent a year. 
Now, judged by the gap between 
the yield on index-linked and on 
conventional gifts, expected infla- 
tion is half that level This is a 
striking measure of confidence 
gained. But it is also a measure of 
how for confidence falls short of 
the govern m ent's target of 1-214 
per cent tnflarinn “by the end of 
this parliament”. 

Since its trough in January the 
yield on. Index-linked gilts has 
risen by just over one percentage 
paint, to 33 per cent, while the 
yield an 10-year conventional gilts 
has risen by a little over 2 percent- 
age points. Thus, perhaps half of 
the total increase is due to higher 
real rates of interest, presumably 
caused by prospects far improved 
global growth, while half is due to 
what might be an increased 
infla tion premium. 

The question is what the partic- 
ularly adverse shift in the UK 
bond market means for British 
g o ve rn ment policy. It means, first 
of aD, that the UK government 
lacks credibility more than do 
most other G7 countries. This is 
worrying enough in Itself and par- 
ticularly worrying for such a large 
borrower. One implication is that 
the government needs to borrow 
as much as possible in inflation- 
hedged instruments, such as 
index-linked gilts. 

It means, still mare, that the 

gove rnmen t has to ST on tho ride 
of caution. Narrow money is grow- 
ing at more than 7 per cent a year. 
The tax increases do not seem to 
have halted the growth in domes- 
tic demand, though higher 
long-term interest rates will them- 
selves have a deflationary effect, 
notably an hou sin g. The economy 
is growing at just a little above its 
probable long-run potential, about 
as fast as the authorities can per- 
mit Whatever one’s view of the 
economy’s potential output, expe- 
rience in the second half of the 
1980s demonstrates the inflation- 
ary costs of converging upon it too 
quickly. 

The conclusion is simple: the 
next shift in base rate must be up. 
The question is not it but when. 
The answer is sooner rather than 
later. 


D espite the summer 
sunshine, a deep chill 
has descended over 
the European capital 
markets. Fears of 
renewed inflation have crossed the 
Atlantic, T" aWn g an unexpected q™* 
disturbing entry in Europe’s finan- 
cial centres. Across the continent, 
band prices in the past month have 
suffered the steepest foil since early 
1990; when markets were unnerved 
over the prospective economic 
fmpoi-F of German unification. 

Amid widespread concern about 
sharply rising money supply growth 
In Germany, the settoff has brought 
long-term bond yields in Europe's 
most powerful economy to slightly 
above levels in the US. Hopes have 
evaporated that Europe could be 
shielded from the long-term interest 
rate rise in the US after the Federal 
Reserve started tightening credit ha 
February. 

Since economic recovery in 
Europe is still only hesitant - in 
contrast to the US, now in the 
fourth year of upswing - the sharp 
rise in long-term interest rates has 
come at a difficult time. Unemploy- 
ment to the European Union is a 
record 11 per cent 
Reflecting the turbulence. 10-year 
band yields in Germany dosed yes- 
terday at 7.07 per cent, up by 0-24 
points compared with the previous 
week and 2Ji2 points compared with 
the of last year. Yitilds on UK 
government bands (gilts) wee up 
nearly 2 points compared with the 
end of last year, while those in 
France rose 2.70 points. 

Investors and traders have been 
badly unsettled. “It’s still gory out 
here,” says Mr Sapjay Jodd, chief 
band economist at Oaiwa Europe, 
the securities house, in London. 
“Everyone is underwater.” 

Pressure on French bonds have 
mainly come from futures con- 
tracts. “It is quite incredible,” said 
one Paris baud analyst “You could 
never have predicted these levels a 
few months ago.” An economist at a 
Reach merchant hank says: “A lot 
at leveraged foreign investors, par- 
ticularly in the US, have been pull- 
ing their money out of French and 
other European bonds.” 

Mr nhriflttqn stranger, exec- 
utive of Frankfort-based DWS, the 
Deutsche Bank affiliate which is 
Germany’s biggest fund manage- 
ment group, says fundamental eco- 
nomic factors do not Justify’ the 
steep yield rise. But he adds: “A lot 
of people have been badly hurt It 
will be a little while before they get 
bark into the game." 

Mr George Ma gmin, international 
economist at S.G. Warburg, the 
mflrnhant bank, is still more pessi- 
mistic. “We are seeing a very 
aggressive and pwinfni adjustment 
in real yields. This is a bear market 
that will have occasional fierce ral- 
lies. But basically the trend will 
continue over the next six to 12 
months.” 

The interest rate squeeze spells 
bad news for European govern- 
ments trying to fund large budget 
deficits on nervous and volatile 
markets . If it persists, tHo tighten- 
ing could have repercussions fir tha 
European Monetary System, which 
has been performing relatively 
smoothly the ahHTMtonmAnt Of 
narrow bands last August 
International fmanrfaT uneasiness 
has brought acute consequences for 
weaker-currency governments in 
Europe, penalised by financial mar- 
kets for failures to control budget 
deficits. As investors fret about 
poor European economic conver- 
gence and Hia shrinking «-Tinnr*»c 
that economic ^ monetary 
win take place by the initial 1997 
target date, a gap in bond market 
yields between northern and 


Even though inflation pressures still seem 
low, FT writers say pessimists are in 
the ascendant in European bond markets 

Chill blows in 
from the west 


fears about higher Interest rates in 
coming months. Growth in both 
Fiance and west Germany may be 
1.5 per cent or more this year. 


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Do you support a single currency? 
April 1994 

*«1_ 

Mo l 34% 

SoucKMert 


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Biupe? 

3 Apr! 1894 

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southern Europe seems to have 
became permanent. 

The band mar ket shake -up could 
add to political pr ess ur es on several 
European governments, hi Spain 
corruption scandals affecting the 
ruling Socialist party have 
pr o mpted rumours of a possible 
downgrading of Spanish g o v e rn- 
ment debt. “The fact that the Span- 
ish market has fared worse [than 
other markets] has little to do with 
fundamentals and more to do with 
the political situation," wdd Mr Josfi 
Luis Faito of Madrid brokers AB 
Aseaores. 

In a week cf contradictory eco- 
nomic data, the markets have been 
ignoring good news and focusing tax 
the bad. A post-unity inflationary 
fillip in. Germany - one of the main 
reasons for upward pressure on 
European Interest rates during 
199998 - now seems to have ended. 
According to figures published tills 
week, the annual rate of German 
price rises has fallen to 2J per cent, 
the lowest for three years. 

However, this development has 
been outweighed by worries about 
the Bundesbank’s cuts in short- 
term i n teres t rates in the past two 
months, in spile of soaring growth 
of M3 money supply. According to 
latest Bu nd esba n k figures, which. 


have been distorted by exceptional 
factors, annualised MS growth in 
April was 159 per cent, well above 
the Bundesbank’s 4 to 6 par cent 
t a rge t This year Is almost certain 
to he the third in succession in 
which the Bundesbank's money has 
been exceeded by a wide margin. 

Mr Thomas Mayer, senior econo- 
mist at Goldman Smihs, the invest- 
ment hank, in Fr ankf urt, believes 
the Bundesbank made a nrisfud#- 
mart in its latest V4 point cat in the 
discount rate in May. He predicts 
that 1994 growth in M3 money sup- 
ply will be more than ID pear cent 
This may or may not lead to fixture 
inflation but for market partici- 
pants it is deeply unsettling. It 
would be reassuring if the Bundes- 
bank would clarify its policy." 

On a broader front, the tactics of 
the Bundesbank have attracted 
unusual criticism during the past 
fortnight On May 23, ambiguous 
remarks by Mr Hans Ttetmeyffl-, the 
Bundesbank president about a 
pause in cuts in interest rates - 
later clarified as referring simply 
to its official rates rather than 
money market rates - depressed 
band prices. Additionally, the Bund- 
esbank has twice during the past 
fortnight cancelled auctions of 
short- and long-term German 


gTTVP mHHHlt bonds. 

The German finance ministry jus- 
tified file delay on the grounds that 
its short-term flnanring needs had 
been fulfilled. But the Bundes- 
bank’s cancellations were widely 
interpreted as confirming that 
investors had no Intention of 
r e t urni ng to the market. Addition- 
ally, tim Bundesbank’s moves dis- 
rupted bond auctions in France, 
Spain and Italy - governments with 
canaMartMa finaniSng needs. 

For man y analysts, this week's 
bond market fright has been exces- 
sive, fo mort of Europe, Inflationary 
pressures are still thought to be 
low. “I think that fears of a resur- 
gence of inflation in Germany are 
overdone," says Mr Hermann Rem- 
sperger, chief economist at BHF 
Bank in Frankfort. “Our prediction 
is that inflation will be about 2 per 
cost throughout murfi of nmt year, 
and may even fall below that” 
However, this week’s worries over 
the Bundesbank's policies have 
been Just one of the footers weigh- 
ing on the m a rke ts. 

• Signs of a «Hgbt pick-up in eco- 
nomic recovery in Germany and 
France - the subject of a confident 
communique fr om the Franco-Ger- 
man M ini mi f in M^Hwniw tm Mon- 
day - have added to bond market 


ate by comparison with previous 
recoveries, but they are none the 
less higher th an forecast earlier In 
1994. 

• In Britain, government bond 
prices fell particularly steeply in 
mid-week after release of data show- 
ing a 7.1 par cent rise in Britain’s 
narrow M0 money supply in the 12 
Twmtha to May. 

• In Raly, Mr Antonio Fazio, gov- 
ernor of the Bank cf Italy, issued a 
public warning to the new govern- 
ment about the risk of increasing 
inflation through measures to 
revive the economy. 

The biggest single concern for 
bond investors is toe sheer weight 
of government debt Because cf the 
size of debt interest payments in all 
EU countries, this week's increase 
in interest rates win add to strains 
on budgets - offsetting the positive 
effect on government finances of 
the European economic recovery. 

In a speech this week, Mr Tfet- 
meyer underlined that 1994 budget 
deficits across the EU would aver- 
age more than 6 pea: cent of gross 
domestic product - slightly down 
from last year. Total public debt, on 
the other hand, would grow to more 
than 70 per cent of GDP. Mr Tlet- 
meyer warned that governments 
cocdd become “impotent prisoners 
in a budgetary debt trap”. 

F ears like this have played 
a particular role to dis- 
couraging non-resident 
investors from buying 
European government 
bonds this year. Reflecting increas- 
ing globalisation of markets in 
recent years, a Salomon Bros study 
estimates that investors from 
abroad last year accounted for 73 
per cant of net issuance of govern- 
ment bonds in Germany, 50 per cent 
in Italy, 48 per cent in Spain, 34 per 
cent in Denmark, 25 per cent in the 
UK and France and 22 per cod In 
Italy. 

Bond analysts report that US- 
based "hedge funds", which were 
large bu yers of European govern- 
ment debt last year, have recently 
stopped purchases. 

H, as many economists believe, 
German money supply figures show 
a marked slowdown in coming 
months, allowing toe Bundesbank 
to resume interest rate cuts, the 
interruption in bond purchases by 
international investors could be 
overcame relatively quickly. 

On the other hand, as Mr Rolf- 
Gflnther Thumann, a specialist on 
the German economy at Salomon 
Bros, points out "No one knows 
how M3 will behave. The uncer- 
tainty wfil not go away soon." The 
nightmare for German policy- 
makers is that M3 win continue to 
misbehave throughout the summer 
— intensify ing fears mnwip domes- 
tic German investors of a build-up 
in inflationary potential. 

Under these extreme circum- 
stances, the Bundesbank might 
have Httifi choice but to engineer an 
increase in interest rates during the 
summer - at a highly inopportune 
moment during the campaign fra: 
the German general elections to 
October. "At the beginning of toe 
year, the possibility that Germany 
would start to tighten policy was 
not on the agenda,” says one Lon- 
don bond analyst "But now things 
have changed.” 

Report by David Marsh and Antonia 
Sharpe m London, John Ridding in 
Paris, David Waiter in Frankfurt, 
David White in Madrid, Peter Wise 
in Lisbon 


Cinderella rides the waves 


F or the past 20 years, 
CanWest, Canada's largest 
privately-owned television 
group, has been offered 
radio stations or stakes In stations. 
It has always said No - until now. 

The Canadian group, which also 
has television interests to New Zea- 
land, Australia and Chile, this week 
took a 24.5 per cent stake to Talk 
Radio UK, the UK's third national 
commercial broadcaster; CanWest 
regards the deal as one of the most 
exciting media investments it has 
made. 

Mr Arthur Price, who used to run 
MTM, the Hollywood independent 
production company responsible for 
the drama series BUI Street Blues 
and Lou Grant, is equally enthusias- 
tic. His money is behind the UK- 
controlled Media Ventures Interna- 
tional, the largest shareholder in 
toe station, which saw off five 
rivals to clinch the winning bid. 

Mr Price may be r unning some- 
thing of a risk with Us share of the 
£&5m equity. Zt remains unproved 
whether Talk Radio UK can repli- 
cate to the UK the Increasing suc- 
cess off talk format radio stations in 

north America. It plans to mix 
news, controversy and dab a fe with 
drama, comedy and quiz shows. 

The station, due to be launched 
an February 4, and the interest it 
has created among investors, is nev- 
ertheless the latest sy mp t om of the 
renaissance in commercial radio in 
the UK. 


After more th an g decide a 
tog, the Cinderella wwiMinrn bai 
ken free from its financial s 
jacket commercial radio accoi 
for only about 2 per cent of tub 
advertising revenue, even a« 
number of stations has grown. 

Last year radio advertising 
to £l78£m, compared with £1- 
the previous year, while the pr 
thm of total advertising rose 
18 per cent to 3.4 per cent - 
apart from a further rec 
to sponsorship. Commercial ] 
“•a Increased its share of tote 
»«ng to more than 45 per cen 
S should ove 

toe TOC stations com! 
■“““time next year. 


Raymond Snoddy on the growth 
potential of UK commercial radio 



HriMOMM 

Radio days: heady times again far commercial stations in toe UK 


This overall improved perfor- 
mance has started showing through 

in the industry bottom line, with 
the largest commercial radio group, 
Capital Radio, reporting its best fig- 
ures - a pre-tax profit of £8.4m for 
the six months to March- an 
Increase of 80 per emit over the 
same period a year before. 

Investors in toe City of London, 
like toe advertising industry, are 
starting to take radio seriously. 
"n nTnTnflr rfal radio frag iwtw of age. 
At the moment everything is posi- 
tive for radio,” says Ms Lucy 
Brooks, an analyst who specialises 
in radio at toe UK stockbroker 
James CapeL 

The arrival of the national sta- 
tions, in particular file first of Qwi" 
Classic FM, has been vital to raising 
the profile of an industry that was 
previously local, fragmented and 
seen as rather downmarket 

“I do think Classic FM made cam- 
merdal radio respectable,” says Mr 


Peter Baldwin, director of the Radio 
Authority, the industry regulatory 
body. In this case respectability led 
straight to earnings. 

Commercial radio executives like 
to tell the story of how Barclays 
Bank became a convert to their 
cause. Scepticism on the part of 


classical music station. Last year, 
Barclays spent considerably more 
than Sim on cammerdal radio. 

White Classic, Richard Branson's 
Virgin 1215, the second national sta- 
tion, and Atlantic 252, the other, 
"unofficial” commercial broadcaster 
from the Irish Republic, which 
transmits to a large part of the UK 
on long wave, have been Important 
in making radio a more central 


tive by Mr Richard Eyre, the man- 
aging director of Capital, which 
made it possible for file first time to 
buy an advertising campaign on 
more than 120 local radio stations 
f rom a ftfag fa purchase point — cam- 
paigns that can be aimed at tar- 
geted audiences such as football 
fans. 

In a not her m o ve tha t has boosted 
revenues from commercials, radio 
stations set aside their rivalries to 
support the Radio Advertising 
Bureau, which promotes radio as a 
medium and advises potential new 
advertisers on how to make the 
most of commercial radia 

Commercial radio has also 
received a big boost from radical 
changes at B BC Ra dio 1 taktog to e 
channel even frzrther. away from a 
bit music driven agenda. The result 
has been the loss cf more than 8m 
listeners in less than two years. 

Further growth is likely to come 
from a host of new regional and 
local stations. Five regional stations 
launch to s ^ rf an iw — for example 
Heart FM In the West Midlands. 
Chrysalis, the media and record 
group which won the licence, plans 
to offer adult contemporary m usi c. 

Mr Richard Huntingford, head of 
Chrysalis Radio, believes the potaa- 
tial for bufldtox assets is grynirfifer - 
able. The franchise application - 
only national stations go to the 
highest financial bidder - cost 
about £50,000. The station will be 
worth, In believes, closer to ELQm. 

Chrysalis is aMo planning to take 
its adult contemporary music for- 
mat to London, where applications 


FM - are due in by June 28. Chrysa- 
lis wfil face competition, not least 
from Transworld, one of the largest 
commercial radio groups, which 
have been working on an adult con- 
tempory music format for more 
than two years. 

Mr Eyre of Capital believes that 
such initiatives will ensure that 
commercial radio nonrinuaa to leap 
forward. He says the European 


medium for advertisers, other fee- average at 8 per cent of total adver- 
ters have also been significant rising devoted to commercial sto- 
One has been the creation of tiros is attainable In the UK - 
National Network Radio, an toitia- sooner than most people expec t 


marketing staff was overcome, it is 
suggested, by directors who were 

listening with pleasure to the new for four licences - two AM and two 



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 dail y. 

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 toe 
minute, accurate, national and international news to 300,000 decision makers in Russia. 
News from around toe world that impacts upon the Russian market, makin g Financial 

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To find out more about advertising to these influential people call Ruth Swanstnn 
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06 21, Sarah Pakenham-Walsh in Hong Kong on 852 868 2863. 


FINANCIAL TIMES 




7 



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‘-1 i’WJjy*. •;. ’ * ' 


FINANCIAL TIMES WEEKEND JUNE 4/JLTKE 5 1994 


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MAN IN TH E N EWS: Prince al-Waleed bin Talal bin Abdulaziz 

hero's 
sum 

Mark Nicholson on the Saudi royal who 
has come to the rescue of Euro Disney 



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I t tabes a prince, of course, to con- 
jure up princely sums. But it takes 
a very modem prince to invest 
them profitably In global famvfag 
and leading US department stores, turn 
around a debt-laden Saudi Arabian 
bank and manage a panoply of contract- 
ing, retail and property businesses. 

Enter Prince atWaleed bin Talal bln 
Abdulaziz, 89-year-old nephew of E3ng 
Fahd of Saudi Arabia, grandson both of 
Saudi Arabia's founding monarch and 
Lebanon's first prime minister, bfQian- 
aire businessman and, this week, finan- 
cial saviour of Euro Disney. 

Prince al-Waleed annnuiirawi that he 
would buy 053 to 24 per cent of Euro 
Disney, owner of the troubled EuroDis- 
neyland outside Paris. He -thus became, 
to the joy of headline writers, the 
prince from the mysterious, silent king- 
dom of flowing robes «mfl mythical pri- 
vate wealth who swooped to rescue the 
faffing European outpost of the 20th- 
century’s most potent purveyor of fairy- 
tales. 

But who is this latest Disney hero? 
And what is his mission? Prince al-Wal- 
eed himself will not tell before autumn, 
when Image Sept, Ids French public 
relations company, says it will "launch” . 
him in a series of Interviews aimed at 
presenting him as a businessman to be 
taken seriously in his own right, not 
just for his royal connections. But this 
has been dear for some tfane. 

It became apparent in 1991, when 
Prince al-Waleed snapped up $590m- 
worth of convertible stock in Citicorp in 
one of the biggest placements with a 
private investor in US history. 

Early last year it emerged that the 
prince had also gwafftori an ll per cent 
stake In Saks Fifth Avenue, the US 
department store group. This year he 
teamed up with Accor, the French hotel 
group, in s pending FFrlifon bid for Air 
France’s Meridien chain. Then came 
Euro Disney. 

But his business reputation was 
established in Saadi Arabia before 
these forays into the western business 
world. By the end of the 1980s Prince 
al-Waleed had turned $15,000 granted in 
1980 by his father, Prince Talal bln 
Abduhujz, into a figure he claimed sur- 
passed $Hhl His vehicle was Kingdom 
Establishment, a construction contrac- 
tor. with which he cashed in on Saudi 


Arabia’s modernising spree during the 
early 1980s oil boom. 

Some in the kingdom wonder pri- 
vately how, even given the dizzy spend- 
ing of those years. Prince al-Waleed 
managed to reap so fabulous a fortune 
hum so modest a start-up. But none 
among his friends or colleagues doubts 
for an instant Prince al-Waleed’s busi- 
ness acumen, or that he is quickly 
becoming the consummate product of 
his generation of young, western-edu- 
cated Saudis. He appears as comfortable 
In a sharp suit and a New York board- 
room as tn a white dishriaaTi fl robe and 
the hush of his 130-room Riyadh palace. 

Like most Saudis his private life 
remains just that. He enjoys squash and 
reads voraciously. A francophile, he 
intends to base his European operations 
in France, home of his mother and 
flimt He summers with his wife and 
two children on the cote d’Azur, where 
his yacht. Acajou - previous owners Mr 
Donald Trump Mr Adnan Kashoggi 
- is moored at St Tropez. 

But work dominates his life. “The 
first three things he will talk about are 
business, business and business,” says 
one friend. And bis work ethic is fabled 
in Riyadh, where he spmids most work- 
ing days managing United Saudi Com- 
mercial Bank. Although it is one of the 
kingdom's smallest — ; - 

banks, it is becom- 
ing one of its most 



pr wfHahl p nrutor 

prince’s ownership 
(earnings were up 
25 per cent in 1993). 

"He sets himself a 
very precise agenda 
for each day,” says 
an associate. "And you can set your 
watch by his arrival at the office.” 

His business meetings are notoriously 
crisp ami shorn of customary Saudi cer- 
emonial: "No coffee, no tea, no rime for 
nhat just business, awd fast,” says a 
colleague. He is notably solicitous to his 
staff: he readied mtn his own pocket for 
the severance pay of employees he 
sacked while streamlining USCB. 

And, say colleagues, his business 
strategies, are straightforward. In his 
international investments - Citicorp, 
Saks and now Euro Disney - he looks 
for big deals at bargain prices. The Citi- 
corp investment was a "classic bottom- 


‘Look at the deals he's 
done - Saks, Accor and 
now Disney. This guy 
likes to be in the 
limelight* 


fishing expedition”, says one banker. 
"He took a good look, reckoned the 
bank was undervalued, and pounced.” 
When he cut his stake last year to 9.9 
per cent from 14 per cent, he netted 
on the gharm? — two and a half 
times what he paid for them. 

His associates put the Euro Disney 
deal in this bracket But they say the 
venture’s high profile will also have 
appealed to the prince. "He’s a show- 
man," says a b anke r involved with the 
Disney talks. "Look at the deals he’s 
done - Saks, Accor and now Disney. 
This guy likes to be in the Km plig ht ** 

Hifi Sailfff cramp i-i) j? also haw a simple 

pattern: he is attracted to underper- 

forming businesses 

in growth sectors, 
where he believes 
application of US 

managgrriant princi- 
ples will produce a 
tnrnronnd. "He 
uses his bank,” 
says one banker, 
“as a sort of super- 
graduate training ground for these 
Ideas,” relying on his good wamn to 
attract highcalibre managers. Last year 
Prince al-Waleed bought a majority 
share in Panda, an ailing retail chain in 
the kingdom, for his next corporate 
resuscitation attempt 

The prince has made no secret of his 
ambition to become one of the world's 
richest man, and a revered deal-maker. 
But it is his status within the Saudi 
royal circle which, many colleagues 
suggest, provides a better explanation 
of his motives - and also probably of 
his ability to summon vast amounts of 
cash apparently at wflL 


He has won a considerable reputation 
within Saudi Arabia, and great confi- 
dence within the royal family. One 
result of this, say associates, is that the 
bottom of Prince al-Waleed's .pockets 
need not prove the Km it to his available 
resources. Bankers and businessmen in 
Riyadh say there are other wealthy roy- 
als, shy of publicity, who are happy to 
bade a project with the prince’s name 
on it. "There’s nnthiwg they iflm more 
than backing a winner,” says one busi- 
nessman. “He’s therefore got virtually 
unlimited access to foods.” 

It is this high-profile position as a 
trusted business figurehead for the 
kingdom which the prince relishes 
above all, for family reasons. His father, 
Prince Talal, was one of the heretical 
"Free Princes” in the 1960s, who 
embraced socialism., criticised the rul- 
ing family as undemocratic and called 
for a constitutional monarchy. He was, 
for years, exiled and ostracised. 

Prince Talal has since been fully 
rehabilitated into the al-Saud fold. But 
many see the son's ambitions in the 
light of the father’s past, and wonder 
whether Prince al-Waleed's greatest 
desire is to establish his branch of the 
famil y beyond any question at the heart 
of the kingdom. 

“He wants above all,” says a busi- 
nessman close to hhn, "to be a prince 
acting as a prince should - he's show- 
ing ipariw-nhip qualities, and generosity. 
He’s quicker, richer, faster-thinking 
than others, and he aspires to grow 
more.” In short, he aspires to be the 
quintessential modem prince. Walt 
himself would probably have approved. 
Additional reporting by Michael 
Skapinker and Alice Rawsthom 


J une is shaping up as a 
more ritun usually magi- 
cal month for Walt Dis- 
ney. The US entertain- 
ment giant got off to a 
nice start this week when a 
Saudi Arabian prince swept to 
the rescue of Euro Disney, Its 
financially troubled French 
theme park associate. 

Desert themes were already 
much on the mind of Mr Mich- 
ael Eisner, Walt Disney’s 
chairman: the company has 
just released a low-budget 
sequel to its hit animated 
movie "Aladdin" directly into 
file US video market - bypass- 
ing cinemas - and this fol- 
low-up, called the "Return of 
Jafar”, is proving a big hit 
It is the first time Disney 
has made a full-length film 
purely for the video market, a 
sector dominated by cheap 
children's fare and exercise 
tapes with inspiring titles like 
"Buns of Steel”, 

The gamble is paying off. 
Across the US, children under 
the age of 10 are pestering par- 
ents for a copy, and Industry 
experts suggest "Jafar” could 
become one of the 10 best-sell- 
ing videos of all time. 

But Disney’s biggest June 
success has yet to come: In the 
middle of the month it will 
release its latest full-length 
animated movie, "The Lion 
King”, the story of a young 
lion that becomes king of the 
jungle after fighting off a 
wicked uncle who kills his 
father. In other words, Bambi 
crossed with Hamlet to an 
exotic African setting. 

It has superb animation, 
music by British pop star 
Elton John, and a strong cast 
of actors’ voices, wbich 
includes Jeremy Irons, Rowan 
Atkinson and Whoopi Gold- 
berg. No wonder Hollywood is 
confidently predicting it wOl 
be the runaway hit film of the 
summer. 

That would be no small 
achievement, because the sum- 
mer season is one of Holly- 
wood’s most important periods 
of the year, accounting for 
some 40 per cent of the annual 
American box office take. 

But this year the season - 
which began with last week- 
end’s Memorial Day public 
holiday and ends with Labor 
Day to early September - is 
pr oducing much more *Kaw the 
normal quotient of hysterical 
Hollywood nail-biting. 

There are two reasons. First, 
spring was unnsnally bad at 
the box office, with so few 
American-made hits that a 
low-budget British comedy, 
"Four Weddings and a 


Lion 
eyes its 
share 

Martin 
Dickson on a 
bumper crop 
of films at the 
US box office 





Michael Eisner: happy days 


Funeral”, briefly became the 
most popular movie in tbe 
country. 

Second, the studios are 
releasing an extraordinary 
number of films this summer 

- about 60 - and they cannot 
all be hits. Films that do not 
perform well over the weekend 
they are released, or during 
tbe subsequent weekend, will 
be quickly and cold-bloodedly 
yanked from cinema sched- 
ules. 

Hollywood will be hard- 
pressed to match the success 
of last summer, when "Juras- 
sic Park”, tbe dlnosaurs-nm- 
amuck movie directed by Ste- 
ven Spielberg and backed by 
Universal Studios, broke all 
box office records and powered 
the industry to an unprece- 
dented $2.1 bn to ticket sales. 
This paved the way for a 
record annual $5.1 bn at tbe US 
box office. 

Bat at least half a dozen 
films could break through the 
8100m barrier for total US box 
office sales which traditionally 
marks a film as a blockbuster 

- and they will need to if the 
studios are to make a decent 


profit, since some of the most 
ambitious movies cost $40m to 
$50m to make. 

"True Lies”, a spy adventure 
from Rupert Murdoch's Fox 
group, starring muscle-man 
Arnold Schwarzenegger, is 
rumoured to have cost more 
fam $100m. Schwarzenegger, 
reunited with the director who 
wade his big bit "Terminator 
2”, will be trying to pat 
behind him one of last sum- 
mer's biggest flops, “Last 
Action Hero”. 

The season has got off to a 
strong start. “The Flint- 
stones”, produced by Spielberg 
and distributed by Universal, 
took a record 837.5m at tbe 
box office over tbe Memorial 
Day weekend. That just topped 
the 337.03m taken in 1989 by 
"Indiana Jones and the Last 
Crusade”. The film has real 
actors playing characters from 
the 1950s cartoon series of the 
same name, with its Stone Age 
setting and signature cry of 
"Yabba Dabba Doo”. The 
movie has been widely 
panned. Critics' barbed puns 
range from "Yabba Dabba 
Don't”, to "Yabba Dabba Doo- 
Doo”. 

But it seems certain to main- 
tain its strong run ("have 
legs”, to the Industry jargon), 
thanks to a huge tie-in market- 
ing campaig n , involving 1,000 
products ranging from McDon- 
ald’s hamburgers to Flintstone 
catapults. 

The success of the "Flint- 
stones” has overshadowed the 
Strang start made by Warner 
Brothers' "Maverick”. Star- 
ring heart-throb Mel Gibson, 
this is another in a long line of 
movies this year which 
revamp television series. The 
trend has critics wondering 
abont the pancity of Holly- 
wood's Imagination. 

Others with hit potential 
Include "City Stickers 2”, a 
follow-up to the success that 
comedian Billy Crystal had 
with the first modern-day 
western with this title; "For- 
rest Gump”, the story of a sim- 
pleton starring Tom Hanks; 
and "Speed”, abont a bus 
rigged by a psychotic to 
explode if it slows below 
SOmph. 

But the season should still 
belong to "The Lion King”, 
which industry observers 
think could top 8200m in total 
US box office receipts. With 
that and the Saudi rescue 
under bis belt, Mr Eisner 
might be heard muttering 
"Hakuna Matata”, the Swahili 
motto adopted to the film by 
the would-be lion king. It 
means “no worries”. 


A1 


mm «**’ 

Mot an 
!*t0 •Aaw 


n , 

•f Wii /*;-■ 


£ 




\ TO 300,00° 

1U8SDAY 


•■i.rf: 1 ,v 
?L f? ^ 

m'A" 
jl 5 ' 


r^yoa morefikely-to die in 
an ■ aircraft crash or in a 
cataclysmic collision 
between the earth and an 
^ object from space?' 

* Amazingly, the two risks are simi- 

- lar - about t in 20JH0 for an aver- 
age. American - according to the 

- latest agtt tmnmicftl calmTatifm« L 

Although aircraft crashes kill 
hundreds of people a year and there 
■- is no authenticated record of any- 
: one on earth ever being hit by a 
heavenly body, once every million 
years or so a collision with a comet 
or asteroid does enough damage to 
wipe out a.large'fractfon of the 
=•• world's population. Over the long 
_ term, therefore, the statistical haz- 
ard from cosmic catastrophes is 
comparable to that from familiar 
natural and man-made disasters. 

Astronomers expect to view a 
similar impact in mid-July - from a 
safe dlstohce of several hundred 
million miles - when Comet Shoe- 
maker-Levy 9 hits the giant planet 
Jupiter with an explosive force 
equivalent to millions of atomic 
bombs. Uiofortunatdy they will not 
be able to see the eoiDisfon directly 
from earth because it will be on the 
far side of the planet but Hashes 
will be reflected off Jupiter's 
moons and disturbances should be 
visible In the Jovian atmosphere for 
weeks. 

Scientists believe that similar col- 
lisions between the earth and com- 
ets or asteroids - lumps of ice and 
rock a few kilometres wide - were 
responsible for the mass extinctions 
that pumtooatothe palaeontological 
record. The - most celebrated 
instance' killed off the dinosaurs 
65m years ago, according to a the- 


Loaded dice in the cosmic void 


Clive Cookson on the chances of 
something going bump in the night 


ory which is now generally 
accepted. Ironically, a cosmic colli- 
sion on that scale brings global 
catastrophe by Ice rather than by 
fire. Although the explosion which 
occurs on impact devastates thou- 
sands of square kilometres, its sec- 
ondary effects are more lethaL Bil- 
lions of tonnes of dust are thrown 
into the atmosphere, plunging the 
whole globe into a sunless “impact 
winter” for many months. Few 
plants nT'vhrftaift escape death by 
freezing or starvation. 

Barth's fast-changing geology 
quickly heals scars left by cosmic 
Impacts. Even so, scientists have 
identified traces of 140 craters left 


• CbancM ri dying from ' 
setoctwd cmaos (US} 

Car aoddom 

' 1 In 100 

Murder 

1 In 300 

Rr» ’ 

1 maoo . 

firearm* aocMent ‘ 

1 10 3,600 

SactOKUtian • 

: 1 msjdo 

Asteroid or 


comet impact - 

. 1 to 20,000 

Afcwaft crash . 

. lin 20000 

Vononvaus btta • 


oratlno 

- • \1 fa loonoo: 

fireworks accident ' 

■ T in 1 mfflon 

Food poisoning • - 


..ty botoSero 

i in 3 mfffion - 

Owpcwn aed^todhoa ; 


by giant meteorites, including the 
one that sealed the fate of the dino- 
saurs , which stretches 180km across 
Mexico's Yucatan peninsular. Any- 
one wanting to see the unhealed 
face of such bombardment need 
only look at the moon. 

A detailed hazard assessment by 
two leading American space scien- 
tists, Clark Ch apman and David 
Morrison, published earlier this 
year in Nhture, the science journal, 
concluded that an impact with 
global repercussions is likely every 
100,000 years or so. There is one 
collision devastating enough to kill 
at least a quarter of the human pop- 
ulation (l-3bn people) every 500,000 
to lm years - and to wipe almost 
everyone out every 50m years. 

The biggest extraterrestrial object 
to reach earth this century was an 
asteroid, probably about 30 metres 
wide, which exploded in the air over 
the Tunguska River region of 
Siberia in 1906, flattening hundreds 
of square miles of uninhabited for- 
est Smaller meteorites have dam- 
aged buildings and cars - in 1992, 
for example, a 12kg rock ruined a 
Chevrolet in New York state - bat 
fortunately not people: Others have 
reportedly come dose to setting off 
a nuclear alert by misleading Amer- 
ican and/or Russian military 
commanders into thinking an 



enemy missile was attacking. 

But we may now be living 
through a relatively quiet period In 
the cosmic bombardment of earth. 
Some astronomers believe large 
meteorites come in cycles, rather 
like the streams of small meteors 
that cause periodic showers of 
shooting stars. According to one 
theory, earth passes through the 
debris of a huge comet every 3,000 
years or so, producing more fre- 
quent Tunguskarsazed Impacts; this 
would have occurred most recently 
in the Dark Ages (about 500 AD). 

"There Is a lot of information bur- 
ied in fl-nmon* amwiii about destruc- 


tion by fire from the heavens,” says 
Mark Bailey, an asteroid specialist 
at Liverpool John Moores Univer- 
sity. “Until recently, scientists dis- 
missed these stories as figments of 
s omeo ne’s imagination, but perhaps 
the historical record is toning us 
about something that really hap- 
pened." 

For example, Mr Bailey says, the 
account by Nenius in his 5th-cen- 
tnry chronicle of St Germanus, in 
which tbe fortress of the heathen 
king Vortigan was suddenly 
destroyed by fire from heaven, 
sounds hke a large meteorite. 

Over the past decade, as cosmic 


collisions have moved from science 
fiction to respectable research, 
astronomers have begun to realise 
that we are not necessarily power- 
less to prevent a cataclysm. In prin- 
ciple, 21st-century space and mili- 
tary technology could be used to 
detect a threatening asteroid or 
comet in time to deflect or destroy 
it before it hit Earth - just as 
Arthur C Clarke described In his 
recent book, The Hammer of God. 

As a first step, scientists working 
for Nasa. the US space agency, have 
proposed a 25-year Spaceguard sur- 
vey. It would use powerful tele- 
scopes to mm) all 1,000 or so large 


"Earth-crossing” asteroids that 
could cause a global catastrophe, at 
a total cost of just 8300m. It would 
give a warning time of several 
decades before an asteroid collision. 

Comets, which have much longer 
and more • elliptical orbits than 
asteroids, present more of a prob- 
lem. Even for the most elusive 
comet, however, Spaceguard would 
give a few months' warning of 
impending disaster. 

Most astronomers support the 
Spaceguard proposal. More contro- 
versial - and far more expensive - 
is the idea of setting up a meteorite 
deflecting system to keep on 
stand-by, just in case we find a 
comet or asteroid heading our way. 
Some enthusiastic veterans of for- 
mer US president Ronald Reagan’s 
Star Wars programme have taken 
up the idea as a way of developing 
nuclear and laser technologies that 
can no longer be justified on 
defence grounds after the collapse 
of the Soviet Union. 

But others, such as Carl Sagan of 
Cornell University, warn that using 
nuclear explosions to deflect cosmic 
bodies could pose more of a threat 
than the asteroids and comets 
themselves. They say such a system 
could easily be misused to deflect a 
previously harmless asteroid 
towards earth. As Professor Sagan 
puts it: “There is no other way 
known in which a few nuclear 
weapons could by themselves 
threaten global civilisation.” 

So, for the time being, we must 
live with the knowledge that we are 
as likely to die in a cosmic cata- 
clysm as in an aircraft. For the ner- 
vous flyer, that should be rather a 
reassuring thought 


NVQs: teething problems, 
but real progress too 



Prom MrJBugh Pitman. 

Six. Over the fast 10 years or 
so the UK bas built an effective 
vocational training structure 
that did not exist before. Like 
any new industry, it is having 
teething problems, but real 
progress is being made, with 
the Americans and Germans, 
for example* looking at our 
achievements with respect 

Tin statement to tbe House 
of Commons tost week that 
“inadequacies in NVQ 
[national vocational qualifica- 
tion] training systems are 
proving immensely frustrating 
for the many thousands of hon- 
ourable and decent people who 
work in training nationally 
and to JHF Centres throughout 
the country”, while clearly 
supportive, neglected to recog- 
nise that these are very new 
systems to' the early stages of 
development ("Bogus NVQ 
claims raise alarm”, June 1). 

As the country's largest 
work-based training organisa- 
tion. JHP has 1,200 training 
staff wtth extremely wide-rang- 
ing and demanding responsibil- 
ities. These cover not only the 
instruction of 1QJOOQ young peo- 


ple and adults a year, but also 
guidance, counselling and sup- 
port, together with arrange- 
ment of work placements for 
them with 7,000 companies, 
and monitoring and assess* 
meat of them to the workplace. 

We work to partnership with 
the Training and Enterprise 
Councils and local enterprise 
companies to enable people to 
achieve permanent employ- 
ment through the learning of 
vocational skills and attain- 
ment of qualifications. Above 
all, we are to the job creation 


■ NVQs were designed to set 
occupationally based stan- 
dards, to recognise competence 
in the workplace and to pro- 
vide a ladder of achievement 
Much bis been accomplished 
to work-based vocational train- 
ing; we must now ensure that 
the development of a weB-con- 
caved qualification system is 
taken forward by use of uni- 
form systems and procedures. 
Hugh Pitman. 

chairman and chief executive, 
■JHP Training, 

Fazley House, 

nr Malmesbury. Wiits SN1S0JJ 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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

Federalism argument must be confronted 


From Mr Norris McWfdrter. 

Sir, The timely letter from 
the chief economist of the 
Bank of Ireland (May 31) points 
out that the agenda for eco- 
nomic and monetary union in 
Europe is driven by political 
(especially federalist) aspira- 
tions which have little to do 
with economics. 

As those who promote feder- 
alism know perfectly well, eco- 
nomic union inevitably leads 
to political union. Just as a 
fondly loses its independence if 


its honsehald budget is con- 
trolled by outsiders, so a 
nation loses its freedom of 
action if decisions about taxa- 
tion, public expenditure and 
monetary policy are trans- 
ferred to supranational institu- 
tions - in tins case, European 
ones. 

The Maastricht Treaty 
(“Treaty on European Union’O 
commits the EC to the creation 
at a single currency by 1999. 
That alone practically guaran- 
tees the development erf a fed- 


eral state and therefore a com- 
mon European government. 
Can Britain remain "at the 
heart of Europe" - to use the 
prime minister, John Major’s 
phrase - without being pushed 
by these pressures down the 
road to political union? 

If Mr Major remains unwill- 
ing to put such an important 
constitutional issue to the peo- 
ple to a referendum, it is vital 
that he sets aside consider- 
ations of tactics and timing 
and starts to articulate a con- 


ceptually dear understanding 
of the arguments for nartrmai 
sedf-govemance versus federal- 
ism. This debate should be 
open, honest and immediate. It 
should not be obscured by the 
party political battle for seats 
in the European Parliament 
which, in this context, is irrele- 
vant 

Norris McWhirtar, 
chairman. 

The Freedom Association, 

35 Westminster Bridge Road, 
London SE1 7JB 


Cross-Channel bootlegging racket plus ?a change . . . 


From Mr Raymond Notlage. 

Sir, Your report, “Three 
bootleggers jailed for cross- 
Channel racket” (May 28/29), 
calls to mind the following pas- 
sages to a letter sent by Tobias 
Smollett from Boulogne to Sep- 
tember 1783; 

“The shopkeepers here drive 
a considerable traffic with the 


Rn gHth smugglers, whose cot- 
ters are almost the only vessels 
one sees in the harbour of Bou- 
logne.” 

"The smugglers from the 
coast of Sent and Susses pay 
English gold for great quanti- 
ties of French brandy, tea, cof- 
fee and small wine, which they 
run from this country.” 


"The custom-house officers 
are very watchful, and nvakti a 
great number of seizures; nev- 
ertheless the smugglers ... are 
said to Indemnify themselves if 
they save one cargo out of 
three.” 

"After all, the best way to 
prevent smuggling is to lower 
the duties upon the commodi- 


ties which are thus introduced. 
I have been told that tbe reve- 
nue upon tea has increased 
since the duty upon it was 
diminished." 

Raymond Nottage, 

36E Arkwright Raid, 
Hampstead, 

London, 

NW3SBH 


No reason for such fear 


From Mr Rory Clarke. 

Sir, In response to the letter 
from the self-proclaimed 
"silent industrial majority” on 
supporting Europe (May 31), 
there is absolutely no evidence 
to support their fear that Euro- 
pean employment legislation 
would lead to higher unem- 
ployment to fact, the type of 
legislation proposed is a com- 
promise that is less rigid than 
the legislation in existence in 
many European countries 

where unemployment is as low 
or lower than in the UK. And 
why would granting rights to 
employees, such as works 
councils, be damaging to com- 


petitiveness? Are we to believe 
that Germany and tbe Nether- 
lands are not competitive? 

However, it seems that the 
industrialists are happy to 
keep alive the British tradition 
of social confrontation that has 
helped to wreck industry in the 
UK. Unfortunately for the 
silent majority, the European 
legislation is considered neces- 
sary precisely because, it 
seems, most industrialists do 
not recognise "the responsibili- 
ties of Industry to its employ- 

0gg” 

Rory Clarke, 

15 Cleveland Square, 

Baystoater, London W2 


Challenge of manufacturing 


From Mr Mark BJ RadcRffe. 

Sir, With such age and dis- 
tinction, Henry Grunfeld’s 
words are likely to be taken 
seriously (“Still warning and 
encouraging", May 31). Thus, it 
is a pity that he thinks that In 
industry "it’s more or less the 
same every day”. 

I can think of no more excit- 
ing and rewarding a career 
than running a world business 
with new markets, products. 


technologies, customers, 
exchange rates and people 
challenging the management 
intellectually and physically 
almost daily, while focusing on 
the creation and provision of 
resources for long-term sus- 
tainable success. 

Mark Radcliffe, 

The Mali House, 

Upton, 

near Andover, 

Hampshire SPll 0SJ 








:-AiuS 

- — T- -- g « * - ■ 


FINANCIAL TIMES WEEKEND JUNE 4/JUNE S 1994 


COMPANY NEWS: UK 


The scrap over Scrabble gathers pace 

Mattel bids £52m for Spear 


By David Wlghton 

The hattla between America's 
two leading toy maters moved 
to the Scrabble board yester- 
day after Mattel trumped. Has- 
bro’s bid for JW Spear, the 
word game’s UK mater. 

In the corporate finance 
equivalent of getting all seven 
letters out on a triple word 
score, Spear's advisers solicited 
a £52m bid from Mattel which 
was launched just five minutes 
before Thursday night’s dead- 
line. 

The offer of £10 a share beats 
the 900p hid from Hasbro and 
was immediately welcomed by 
Spear’s board. However, Action 
Man maker Hasbro, which has 
the rights to Scrabble in North 
America, Is widely expected to 
return with a higher offer. 

“There must he a pretty good 
chance,” admitted a member of 
the Mattel team. 

The scrap over Scrabble con- 
tinues a rivalry which spilled 
over into the law courts 18 
months ago when Mattel 
claimed Hasbro’ s Slndy doll 
looted too rimiiar to its own 
Barbie. Mattel dropped its law- 
suit after Hasbro agreed to 
give Sindy a feceML 

Hasbro, which has held a 
28.7 per cent state in Spear 
since 1990, launched its bid 
after it received undertakings 
to accept the offer from Spear 
family trusts which control a 



Action Men prepare for battle as Barbie moves into the fray in the latest move for Spear 


further 244 per cent The 
undertaking s were to become 
irrevocable if a higher offer 
was not received by midnight 
an Thursday. The trusts have 
little option but to accept the 
highest bid. 

The original bid split Spear’s 
boardroom with Mr Francis 
Spear, nturirnum , saying it was 
“fair and reasonable” and the 
other directors dismissing It as 
“totally inadequate”. 

Although welcoming the new 
offer Mr Spear has yet to join 


die o ther directors in advising 
shareholders that the Mattel 
offbr “reprosente a better pros- 
pect for the future develop- 
ment of the business of Spear”. 

Mr Spear is close to theHas- 
senfeld family which founded 
Hasbro but the rest of the man- 
agement are understood to be 
worried that Spear would dis- 
appear within Hasbro's inter- 
national gMwfta business. 

In contrast, Spear would be 
the first sizeable move into 
board games for Mattel, which 


has previously expressed inter- 
est in the area. This made it a 
natural target for Barings, 
Spear’s advisers, when search- 
ing for a rival bidder. Mattel 
finally responded at 6pm and 
Robert Fleming, its swiftly 
appointed merchant bank, 
launched the bid sir hours 


The last recorded trade in 
Spear shares was at 740p on 
May 12. Mattel’s offer repre- 
sents 18.4 times Spear’s earn- 
ings last year. 


Barcom 
shares 
dive 30p 

By John Murrefl 

Shares of Barcom, the civil 
engineering and plant hire 
group, plunged 80p to 24p yes- 
terday on news of a swing 
from profits of £737,000 to 
losses of £1.49m pre-tax 
for the six months ended 
March 3L 

First half turnover, how- 
ever, Improved from £13m to 
£2&3nz. 

Mr John Pinckard, chair- 
man, said there had been a 
"significant setback" in the 
past few months. He also said 
there had been a need to reor- 
ganise Hawkins, the plant hire 
fleet acquired early In 1993. 

The reorganisation of Hawk- 
ins amounted to £718,000 and 
was taken above the line. Pre- 
tax profits were also 
affected by a rise in interest 
charges from £480,000 to 
£944,000. 

The “early promise” shown 
by Hawkins had not been sus- 
tained and the "anticipated 
profitable utilisation" of the 
acquired plant fleet had "not 
been achieved". Mr Pinckard 
said the effect of the problems 
encou n tered was exacerbated, 
and to a considerable extent 
hidden, by persistent wet 
weather over the winter 
months. 

Losses per share of 8.5p emu- 
pared with earnings of 4.06p. 
The interim dividend Is 
passed - 1.25p was paid previ- 
ously. 

In spite of pit closures, the 
group’s predominantly coal 
Industry business had contin- 
ued to make a positive contri- 
bution. The diversification of 
this business into the power 
generation field and to other 
non-British Coal customers 
was continuing as planned. 

Mr Pinckard said that with 
the achievement of a more bal- 
anced plant fleet and a lower 
level of operating costs there 
was a reasonable expectation 
that levels of business nor- 
mally experienced In the sum- 
mer months should result in a 
"much Improved” outcome In 
the second half. 


Property 
Partnerships 
static 

Property Partnerships, the 
developer and hotel owner, 
reported virtually unchanged 
pre-tax profits of ra ngm for the 

year to March 31 . 

Net rental income from 
investment properties showed 
a small Increase from £2.09m to 
£2* Mm, while hotel turnover 
was lower at £4.Z7m (£448m). 
The hotel subsidiary continued 
to face tough conditions and 
profits declined by U percent, 
with occupancy levels and 
room rates static. 

Profit took In an nx c e pH n yiat 
Item in respect of an Ipswich 
property which was sold for 
more than £500,000 In Decem- 
ber, £97,000 ova- book value. 

A final dividend of 44p lifts 
the total by 34 per cent to 7.6p, 
more than twice covered by 
«?ninga per share of 15.93p 
UA63rt. 

revaluation of 


Pressure on margins drives 
Acorn down to £115,000 


By Alan Cam 

Higher component costs and 
Increased competition drove 
margins down at Acorn Com- 
puter Group, contributing to a 
sharp fall in annual profits. 

Although revenues in the 12 
months to December 31 rose 13 
per cent to £64J3m (£48 .2m), 
Operating profits fall from 
£L58m to £104400 and tiie pre- 
tax Ifafl was £115,000, agains t 
SUStm. Bare Inga per share fell 
to 0.2p (2p). 

The shares dropped 14p to 
76p. 

The company, controlled by 
Olivetti of Italy, remains the 
principal supplier of computers 
to schools in the UK. Gross 


profit margins fell by 6 per 
cent as the cost of key compo- 
nents, especially semiconduc- 
tors, rose. Profits were further 
hit by the £700,000 cost of 
estahUsbtog a raw operation in 
Germany. 

Mr Ernesto Musumed, chair- 
man, said Germany was an 
Important potential market 
and that the in ve s tment had 
been Important for the compa- 
ny's longer-term development 
Revenues from the new opera- 
tion had, however, been 
affected badly by the recession. 

He thought it unlikely that 
margins would recover because 
of competitive pressures and 
was taking steps to reduce 
overheads accordingly. 


The company benefited from 
a £183400 contribution to prof- 
its from Advanced Rise 
Machines, a semiconductor 
company in which Acorn has a 
42.86 per cent stake. ARM 
develops products that are 
being used, among others, by 
Apple C o mp ute r of the US and 
Rimmtm g Electronics of Korea. 

Mr Musumed said the com- 
pany would continue to 
address the home computer 
user as well as the schools 
market. It has launched a 
range of machines - Rise PC - 
able to run both Aoom operat- 
ing software and operating 
systems from other suppliers 
and suited to publishing and 

I ntera c tive Tmiltiirwdifl. 


Hawtal 
Whiting to 
raise £5m 


By John Qrtffttta 

Hawtal Whiting, the motor 
Industry design and engineer- 
ing consultancy, Is to raise 
£6m through a rights issue to 
reduce borrowings and finance 
further expansion. 

The move was announced as 
It reported a return to profit 
after being badly hit by the 
world motor industry recession 
In 1992 which saw several 
rivals go Into receivership. 

Turnover rose 23 per cent to 
£69.6m in 1993 on which pre-tax 
profit was £781,000, compared 
with a loss of £2.180. Losses 
per share were cut to 24p 
(S9.6p). 

Mr John Whltecnss, chair- 
man, forecast farther growth 
in North America and main- 
tained that European dtwnand 
was recovering. However, he 
warned that east Asia business 
was "less predictable". 

The rights Is on a 7-for-17 
basis at 68p. There la also an 
already underwritten subscrip- 
tion for 3m preference shares 
with warrants. 


valuations of £26 Am and 
£l3.7m, representing a surplus 
of £5.1m over book value and a 
deficit of £540,000 respectively. 

Net asset value per share 
was up from 293p to 344p. 

CA Sperati 

CA Sperati, the Greenwich- 
based company formed in 1856 
and which stfll supplies but- 
tons and trimmings to the 
clothing industry, reported 
profits sharply reduced in the 
six months to April 30. 

On turnover down 13 per 
cent to £377,743, pre-tax profits 
dropped from £35489 to £16498. 
Earnings per share emerged at 
lL2p (25.4p). 

Manakin 

Manalriw Holding s , the forni*T 
venture capital investment 
group which has been in mem- 
ber's voluntary liquidation 
since 1991, had a net asset 
value of 8Sp per share at April 
16, up from 82p at the compa- 
ny’s October year-end. 

A further capital distribution 
of 30p per share to Bha rah oM - 
ers - the seventh so for - will 
be paid later this mouth, bring- 


BZW criticised over 
Shoprite placement 


By WElum Uwla 

Institutional shareholders have 
expressed concern over a 
recent BZW-led placement of 
preference shares cm behalf of 
Shoprite, the discount food 
retail group. 

It has emerged that BZW, 
sponsor to the issue and lead 
agent, retained 20 per cent of 
the £l5m cumulative redeem- 
able preference shares without 
making thin clear to subscrib- 
ing Institutions. 

“If they had told us that they 
were going to end up with 3m 
shares than there is no way 
that we would have taken 
any,” erne fond manager said. 

"The market’s dear under- 
standing of this placemen t was 
that they would end up with 
some but nothing like this 
amount,” said awd-hur institu- 
tional investor. 

Credit Lyonnais T-nt-ng also 
acted sa placing agents on the 
Issue but only for a small num- 
ber of shares. Insiders say it 
did net retain any shares itself. 

BZW’a holding is revealed In 
the share register fix- Shoprite 
Finance (UK), part of the Sho- 


NEWS DIGEST 


lug the total returned to date 
to 2774m, or 380p per share. 

Total Income for the six 
months to April 15 amounted 
to £117415 (£137402) but the 
pre-tax loss narrowed to 
£99493 (£191404). Losses per 
share were 041 


Lots 

London & Overseas Freighters, 

the Bermuda-based shipping 
company, returned pre-tax 
profits of 54.17m (£2.7fen) for 
the year to end-March. 

That compared with $L09m 
last time. The fourth quarter 
contribution improved from 
$722400 to $L8m. Earnings per 
share for the 12 months 
emerged at 104 cents (44 
cents). 

London Industrial 

Continuing operations* turn- 
over increased from £54m to 
£6J9m at London Industrial, the 
provider of workspace for rent 
to small businesses in Greater 
London, while pre-tax profits 
were down at £983400 for the 
year ended March 31, com- 
pared with 2146m, despite a 
rise in fourth quarter figures. 


pitta group which Is baaed in 
the bla of M e". 

Mare than 3m shares were 
alloted to Wedd Jefferson, a 
nominee company used by 
BZW. The holding has been 
reduced although BZW would 
not give any details. 

Since BZW’a placement of 
the cumulative redeemable 
preference shares in February 
the price of Shoprite shares 
has fallen from lOOp to 

88p. 

Twg weeks ago the company 
was forced to bring forward 
publication of Its interim 
results from mid-June because 
profits fin 1 the period ware sub- 
stantially below expectations. 

The company announced 
that operating profits had 
fallen by 17 per cent from 
£SL43m to 22.02m while turn- 
over for the six months to May 
1 rose by 69 per cant, from 
£86m to 2106m, 

BZW said yesterday. To 
retain 20 par cent of a place- 
ment is not unusual We never 
make it clear how much we 
will retain.” At least part of 
BZWs holding was fix price 
stabilisation. 


The company was floated in 
December and raised £l4m 
from tiie share piarttig - 

Barnings per share were 
124P (L&2p) and, as forecast, 
there is a final dividend of 6p 
for the year. 

Western Selection 

Western Selection, a strategic 
investment com pany , repor te d 
profits before tax of £69400 for 
tfafl gfar months ft> Mar ch ffl, up 
from £24400 last time. 

The outcome was amelio- 
rated by a partial write-back of 
£41,400 fix 1 a provision for per- 
manent diminution In invest- 
ment values no longer 
required. 

The company, which holds 
stakes of 42 per cent In Bur- 
lington Group and 1&2 per cent 
in Crestan, reported a net asset 


DMGT’s 
£93m for 
Nottingham 
newspapers 

By Raymond Snoddy 

The Daily Mafl and General 
Trust, owner of the Daffy MOO, 
yesterday emerged as the 
victor in a controlled auction 
for T Bafley Forman, publisher 
of the Nottingham Evening 
Post 

The group paid £924m cash 

for tiie Nottingham group and 

an associated printing 
company, and beat off 
challenges from Emap, the 
newspaper and mag a zine 
publisher, and the 
recently-floated Midland 
Independent Newspapers, 
publisher of the Birmingham 
Post and MaiL 

The auction, organised by 
Barclays de Zbete Wedd, 
produced a higher price than 
widely expected, with the sum, 
29 times earnings, being tn 
line with thB valuation of a 
number of other regional 
newspaper groups coming out 
of recession. 

Two factors tended to push 
the price up - the feet that 
the company is one of the most 
significant regional evening 
newspaper groups still in 
private hands, and that DMGT 
has newspapers in the region 
in both Derby and Leicester. 

The completion of the sale 
is subject to the deal being 
cleared by the Monopolies and 
Mergers Commission, The aim 
is to make the business part 
of Narthdiffe Newspapers, 

the regional newspaper 

business of DMGT. 

Mr Nicholas Forman Hardy, 
chairman of Forman Hardy 
Holdings, said yesterday that 
Us family’s association with 
tiie Nottingham Evening Post 
dated bade to 1878. 

The decision to sell the 
business has been a 
particularly difficult one to 
make for me and my fellow 
shareholders”, ho added. 

Some dose to tiie sale 
bdtove that Mr Forman Hardy 
may now he more in ter este d 
in forming and land-owning 

thaw r unning a newnguipwr 

group- The feet that the 
Nottingham Evening Post was 
in the vanguard of tito 
introduction of new 
technology in the 1970s 
probably means a degree of 
re-equipping Is now needed. 

In tiie year to the end of 
1993 the business made 
unaudited pre-tax profits of 
Z44m on turnover of 2244m. 


Conflicting 
signals from 
Dale Electric 

By Simon Davies 

Dale Electric International 
put out conflicting signals to 
shareholders yesterday when 
ft announced that an approach 

had been made which might 
lead to an offer for the 
company, but followed this 
up with a profits warning. 

The share price of the power 
systems manufacturer reacted 
accordingly, rising 12p to 79p 
on news of the potential offer 
hut falling hack to close at 
Tip. 

The company stated that 
it was preparing a 
restructuring which was 
"likely to Involve a material 
reduction in the value of the 
group's net assets as at May 
1 1984” and would result hi 
heavier lasses than 
anticipated. This 
announcements came less than 
three months after it launched 
a £5m rights issue to reduce 
debt and Improve 
productivity. 

Dale gave no Indication of 
the nature of the offer, but 
it emphasised that 
“discussions are at a very 
preliminary stage". 


value of 24.67p at March 31, up 
from 22. Ip at the September 
year-end. 

Earnings per share improved 
to 0.4lp (Qjfip). 

Brown & Jackson 

Shareholders in Brown & Jack- 
son, owner of the lossmaking 
Poundstretcher chain of dis- 
count stores, yesterday 
approved a rescue offer from 
Pepkor, the South African 
retailing group, which could 
involve a capital injection of 
up to £564m in return for a 63 
per cent stake. 

Shareholders representing 
98.4 per cent of the votes cast 
and SO per cent of the issued 
share capital voted aaa poll fn 
favour of the resolution, which 
was unanimously backed by 
the board. 


DIVIDENDS ANNOUNCED 


Currant 

payment 

Data of 

payment 

Cones - 
ponding 
dridsnef 

Total 

far 

year 

Total 

last 

year 

-Barootn ■■ hit n0 

. 

1.25 

- 

3 

London feiduntl to 5 

Aug 2 

•» 

s 

- 

Prop PartiMCihto__fin AJ9 

July 25 

4.7 

7 A 

7X5 


Dividends shown penes per share net 


Lasmo ordered to stop 
Enterprise accusations 


By Robert Coralne, Peggy 
HoWnger and Andrew Jack 

Lasmo, the independent 
explorer subject to a £l-2hn 
hostile bid from Enterprise Oil, 
has been told to stop re peatin g 
its accusation that Enterprise 
had "...breached UK account 
tog standards”. 

The move by the Takeover 
panel Is the second to a week 
which seeks to clarify allega- 
tions by r-aumfl over Enter- 
prise’s record. 

Yesterday’s statement 
related to a T i?g™> document 
issued last month in which 
Enterprise was accused of 
contravening UK accounting 
practices in its treatment of 
acquisitions. 

Lasmo said Enterprise's 
actions inflated earnings. 

The Panel said It could not 
rule on the validity of the 
accusation. 

But Lasmo should have used 
“. . . Iras definitive terms". 


The panel is believed to have 
been comfortable with the gen- 
eral tenor of the document, 
which raises questions about 
the bidder’s earnings record. 

It Is merely the conclusion, 
which might have Implied 
there could only be one 
accounting treatment for cer- 
tain acquisitions, which caused 
a problem. 

It Is believed to be the first 
time the panel has had to rule 
on such a precise allegation. 

The panel said there was no 
dispute over the right of the 
to raise accounting 


response; Mr Andrew Shflston, 
tiwawffg director, said Lasmo’s 
attack was "a dead issue. Now 
we can move back to having 
an intelligent debate with the 
Institutions” over the merits of 
the £L2bn bid. 

Lasmo disagreed, however, 
saying its ofahna that Enter- 
prise had Inflated earnings 
r emain ed a live issue and 
called into question the value 
of the company's all-paper 


But it noted that "Enterprise 
received unqualified audit 
opinions throughout the rele- 
vant period,” and that 
"...Lasmo should have noted 
the possibility of alternative 
views” on the way companies 
choose to treat acquisitions in 
their books. 

Enterprise said it was 
"delighted" with the Panel's 


Institutional Investors said 
that the retraction reflected 
well on neither Lasmo nor 
Enterprise. 

"We tbtok the arguments on 
both sides have been of fairly 
low quality to date,” said one. 
The strength of the allegation 
that Enterprise could have 
breached accounting standards 
was blamed on Sir Rudolf 
Agnew, Lasmo chairman, who 
“just hkes to fight dirty and 
create a big hodha”. 

See Lex 


Weak market forces UPF 
to reduce flotation value 


By Sbnon Davies 

UPF Group, tiie manufacturer 
of vehicle chassis frames, has 
cut the value of Us flotation 
by cme third to £404m as a 
result of the weak new Issues 
market. 

The £2Qm reduction in its 
valuation is another disap- 
pointment for a company 
which has struggled since it 
won its independence through 
a £92m management buy-out 
from tiie collapsed Parkfield 
Group In 1990. 

ft was forced to refinance In 
1992 because of bad debts and 
significant problems with a 
new production line. 

The refinancing diluted the 
management stake from 21 per 


cent to 4 per cent 
The past 18 months, how- 
ever, have seen substantial 
growth in Its core business, 
manufacturing t-.bawHa for the 
4x4 market, primarily for the 
Land Rover Disco very and 
VauxhaH/Opel Frontera. 

These account for 70 per 
cent of turnover, and UPF 
remains significantly depen- 
dent an continued growth of 
the 4x4 market 
Mr Keith Evans, chairman 
and chief executive, said that 
BMW’s acqulaition of the 
Rover group provided scope 
for Increased sales, through 
Improved distribution In both 
the North American and Ger- 
man markets. 

The company will raise 


£7fon after expenses from the 
plating of 747m new shares, 
out of the total 1748m share 
placement, priced at 108p 
each. 

The fluids will help reduce 
bank debt to £54m. 

Mr Evans and Mr Urn Bell, 
finan ce director, are selling 

half their 1.73m ahflrwhnidlng , 

raising £933,736, compared with 
the original £75400 cost of the 
entire stake. 

The remaining shares are 
being sold by tin venture capi- 
talists, primarily Phildrew 
Ventures. 

Pre-tax profits of £4Jm are 
forecast for the 12 months to 
end-August, against £l4m In 
1992 and losses in the previous 
two years. 


Pricing puts value 
of £45m on Amey 


By Paul Taylor 

Shares in Amey Holdings, one 
of the UK’s largest private con- 
struction companies and the 
sixth biggest roadbtdlder, were 
priced at 161p yesterday valu- 
ing the group at £46m. 

It Is canting to market via a 
plating of 847to shares - repre- 
senting 28.9 per cent of the 
enlarged capital - with Institu- 
tional i nv e st or s . This will raise 
£10m of new money for the 
company and £8m for existing 
holders. 

Existing holders had hoped 
to raise £Ufan but scaled back 
their share sale in the light of 
market conditions. 

The £8m will be split equally 
between Close Brothers, which 
held a 26 per cent stoke cm 
behalf of some 30 investment 
Institutions, end Amoy’s exist- 
ing directors and managers. 

Mr Neil Ashley, chairman, 
said "It has always been our 


intention to seek a listing for 
Amey at this stage of the 
group's development. We are 
delighted, in current market 
conditions, to have achieved 
our objective of raising £KJm of 
new money in order to 
strengthen the capital base of 
the company and fund Its 
future development" 

The company, previously 
part of the ARC building mate- 
rials and construction group, 
was briefly a Hanson subsid- 
iary when ARC was acquired 
from Consolidated Goldfields 
by Hanson in August 1989. 
Amey was then sold by Hanson 
tor £6.5m to a management 
group led by Mr Ashley. 

Array repeated pre-tax prof- 


of £4.7m (23.4m) last year on 
group sales of £210m (£L82.5m). 
The issue is sponsored by Bar- 
ings and James Capel win act 
as broker. Dealings are doe to 
begin an June 10. 


Great Portland £60m 
property acquisitions 


Great Portland Estates 
yesterday announced nearly 
£60m of property acquisitions, 
principally of manufacturing 
and distribution space, writes 
Vanessa Houlder. 

The largest deal was the 
acquisition of tfae Royal Oak 
Industrial Estate In Daventry 
from Favermead, a private 
company, fix vis Km fn cash 
and 7.5m shares. 

The property comprises 
nearly lm sq ft of distribution 


space on a 38 acre site. The 
investment will produce a total 
Income of more than £3m a 
year. 

In a separate deal, Great 
Portland has bought two prop- 
erties to Runcorn and Leicester 
from Schreiber Securities for 

CT-fitw in anil fim shares. 

Great Portland has also 
bought a portfolio of nine 
retail, industrial and office 
properties for £L4m cash from 
Schreiber. 


Spargo for 
market with 
£12m tag 

By Alan Cane 

Spargo Consulting is coming 
to tiie marfcat by way of a plac- 
ing which values the computer 
software consultancy based in 
London's Docklands at about 
£11.9m. 

Some 8.18m shares, approxi- 
mately £6 per cent of the 
issued share capital, have been 
placed by Peel Hunt at B5p 

flnph - 

AR the shares were sold by 
existing shareholders and no 
money has been raised for the 
company. Dealings are expec- 
ted to begin on June 9. 

Founded In 1989 by Ur Tony 
Spargo and Hr Bob Morton, 
chief e x ec u ti v e and chairmen 
respectively, the company spe- 
cialises In the. dwrig n, imple- 
mentation and enhancement 
(maintenance) of softw a re for 
large companies. Clients 
Include Bank of America, 
Bupa, Conoco and KUL 

In the 1993 year, the com- 
pany made profits before tax 
of £483,000 on turnover of 
£4.87m. Directors forecast 
that, excluding unforeseen cir- 
cumstances, profits before tax 
in the six wimtiu to end-Jtme 
1994 will be not less than 
£800,000, giving earning* per 
share of 3.1p. 

They anticipate a maiden 
interim dividend of not less 
than i.8p, which would repre- 
sent a notional gross yield, 
at the placing price, of more 
then 2 per cent for the half 


Over tiie full year, analysts 
are suggesting a p/e of about 
14. 


Pilkington sells insulation 
arm to Owens-Corning 


By Sbnon Darias 

Pilkington has taken mothe r step is wringing 
its debt and refocusing on its core glass busi- 
ness through the £72L3m sale of PQktngton insu- 
lation to Owens-Coming, the US fibreglass 
group. 

The disposal had been expected, but analysts 
said Pffldngton had achieved a good price for a 
company with net assets of £5Qm and pretax 
profits of £3m. Owens-Coming will also a«aimp. 
gflna of flnarrnigl fannaa, 

pflMmrtan insulation manufactures and satin 
rock wool and fibreglass for the building and 
industrial insulation market in the UK, and has 
a large share of a relatively mature market. 

Mr Andrew Robb, finance director, said: "We 
didn't own the technology, and we were 
restricted to the UK market, which is growing 
slowly.” He estimated that tiie market would 
continue to grow at between 2 cent and 3 per 
cent a year. 

However, It provides a strategic entry to the 
UK market for Owens-Coming, which has 
already established a substantial presence in 
continental Europe. Pilkington Insulation will 


be re n am ed Owens-Coming Building Product 
(UK). 

Mr Warren Knowitan, who win head the bus 
ness, said: "Tim deal gives us a 60 per cent star 
of a large market, excellent aav** and mannfa 
taring capability, and the ability to leverage ou 
existing technology in the future". 

Owens-Corning is capitalised at $3bn (JSbn 
with insulation as one of its core businesses. M 
Knowitan said it would continue to expand tb 
UK business, which ghrmlri secure Jobs for th 
900 employees at Fflkingtan ftHpifrftrai. 

The sale of the company continues a chain o 
divestments by Pffldngtan to fulfil its stated air 
of reducing gearing from a mid-1993 peak o 
close to 90 per cent to 50 per cent by Mfcrch nex 
year. Last September it sold Sola, its spectadi 
lens business, for £20Om and it has 
plans to sell off 49 per cent of its Australia 
operations through a flotation. 

The latest di s pos al will reduce gearing to 
about 8 per cent. Analysts «rp«c* a number o 
other trading and service companies could to 
sold over the year. 

Pilkington is due to annrwraffw fts full yeai 
results an Thursday. 






FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


INTERNATIONAL COMPANIES AND FINANCE 


US media groups agree 
$2.3bn cable TV merger 


By Loudso Kahoa 
In San Francisco 

Times Mirror and Cox 
Enterprises, the US media 
groups, have agreed in princi- 
ple to merge their cable tele- 
vision operations in a deal val- 
ued at $&3bn to form the third 
largest US cable TV company. 

Times Mirror said yesterday 
it was in “serious discussions" 
with Cox "We do have an 
agreement in principle with 
respect to the aggregate cort 
si deration of approximately 
$2.3bn, and other significant 
terms, but a definitive agree- 
ment has not yet been exe- 
cuted or delivered.'* 

Cox officials were not avail- 
able for comment, hut the com- 


pany is expected to issue a 
statement on Monday. 

The companies are expected 
to spta off their cable TV units 
into a new publicly-held com- 
pany. Cox, based In Atlanta, is 
expected to run the merged 
cable TV operations. 

Cox Cable is the sixth largest 
US cable TV company, with 
more than L7m subscribers in 
17 states. The group owns 18 
newspapers including the 
Atlanta Journal and Constitu- 
tion and 19 TV and radio sta- 
tions. 

Times Mirror derives about 
15 per cent of revenues from 
television and cable operations 
and is the 11th largest US cable 
TV system operator with i-2m 
subscribers. It is a leading pub- 


lisher of newspapers including 
the Los Angeles Times and 
New York Newsday. 

The tentative deal follows 
the collapse, in April, of a 
planned Investment in Cox by 
Southwestern Bell, the large 
Texas-based local telephone 
company. Southwestern had 
planned to acquire a 40 per 
cent stake in Cox's cable TV 
operations for Sl.fibu. 

The companies blamed 
Increasingly stringent govern- 
ment regulation of the cable 
TV industry” for the termina- 
tion of their agreement In Feb- 
ruary, the Federal Communica- 
tions Commission ordered US 
cable companies to comply 
with new regulations on their 
rates for basic cable services. 


Mr* 


Hutchison takes over UK port 




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By Simon Holberton 
in Hong Kong 

Hutchison Whampoa, the 
diversified Hong Kong con- 
glomerate controlled by Mr Li 
Ka-shing, has moved to take 
full control of Britain’s Felix- 
stowe container port. 

The company - through its 
newly-created Hutchison Inter- 
national Fort Holdings - has 
paid Orient Overseas Interna- 
tional £50m ($753m) for the 25 
per cant of Fort: of Felixstowe 
that Hutchison, did not own. 

Hutchison is the world's 
largest independent operator of 
container te rminals. The Felix- 
stowe deal gives It fUQ control 
of Europe’s fourth largest con- 
tainer port and one which han- 
dles 38 per cent of Britain's 
container, trade. . 

Mr John Me redit h , manag in g 


director of the ports subsidiary 
said: “The acquisition is very 
much in line with Hutchison's 
investment policy in container 
port operations." 

The company’s main focus is 
on port facilities in China and 
Hong Kong. It owns 77.5 per 
cent of Hongkong International 
Terminals which is responsible 
for handling 50 per cent of the 
container traffic in the colony, 
Itself the world's busiest con- 
tainer port. 

. . In China, Hutchison recently 
added a port development proj- 
ect in Shantou, a special eco- 
nomic zone in Guangdong, to 
an impressive list of ventures 
under way mi the mainland, it 
is developing container port 
farilrHAq in Shenzhen and Zhu- 
bai, the two main special eco- 
nomic zones in Guangdong, as 

Well as to. Sfumghat. 


Meanwhile, Hutchison 
appears to have opted for bank 
finance to fund Us capital-hun- 
gry telecommunications sub- 
sidiary in Britain. According to 
local press reports the com- 
pany wants to raise a three- 
year £500m loan for its Orange 
mobile telephone subsidiary, in 
which it has a 65 per cent 
share. 

The Loan is priced at 55 basis 
points over Libor and is fully 
guaranteed by Hutchison. Bar- 
clays and NatWest Markets 
arranged the loan. Barclays 
owns 5 per cent of Hutchison’s 
UK telecoms subsidiary, while 
British Aerospace owns 30 per 
cent 

A local media report quoted 
one of the loan’s arrangers say- 
ing it was 70 per cent to 80 per 
cent subscribed and would 
close next week. 


Dividends in sight at DG Bank 


,7 By David Water in Franfcfivt 




K -rT 




% 

1 

I 


Spargo ft 
market * 
2 m tas 


The DG Bank, the central bank 
for Germany’s 2,900 co-opera- 
tive banks which has been 
restructuring since 1991, will 
be in a; position to pay a divi- 
dend next year, according to 
Mr Bernd Thiemann, chief 
executive. - 
Mr Thiemann said that 1994 
should be seen as a bridge-year 
leadfaig: fof '& lasting improve- 


ment in the bank's profitabil- 
ity. 

The tumround could only be 
. described as complete, he 
explained, when the bank was 
generating trig enough profits 
to finance a pay-out to share- 
holders. . 

That was unlikely to be until 
-1995, Mr Thiemann said, 
although profits for the parent 
bank during the current year 
were likely to be in the same 


order of magnitude as in 1993, 
when the bank made total 
operating profits of DM364m 
($21 7 5m) before provisions for 
bad and doubtful debts. 

Group partial operating prof- 
its before provisions rose 12 
per cent to DM1.18bn last year. 

In the first quarter of the 
current year, partial operating 
profits - excluding trading 
profits. - were DMSOm. slightly 
ahead of last year. 


Kmart 
share deal 
vote ‘too 
close to call’ 


By Richard Tomkins in .New 
York and Nikki Taft ki Sydney 

Shareholders in Kmart, the 
troubled US discount store 
group, were Yesterday waiting 
to see whether a rebellion by 
institutional investors would 
result in an embarrassing 
defeat for the company's reor- 
ganisation plans. 

As voting began at the com- 
pany’s annual meeting in 
Troy, Mii fr >| h*cft*i i Kmart said 
the result was “too close to 
call”. A result was not expec- 
ted to be announced until later 

yesterday or today 

Kmart wants to create 
shares in its four specialty 
retailing subsidiaries and raise 
money by selling stakes of up 
to 30 per cent in each of them. 
However, some of the compa- 
ny’s most powerful institu- 
tional Investors want Kmart to 
sell the subsidiaries altogether 
so that it can concentrate on 
improving the performance of 
Its ailing discount store 
operations. 

Yesterday, Kmart attempted 
to win support for its propos- 
als by outlining a parallel 
effort to lift sales and profits 
in the core discount stores 
through new management 
structures, new stocking meth- 
ods to free employees for cus- 
tomer service, micro-market- 
ing to enhance promotional 
opportunities store by store, 
and daily deliveries to stores. 

It said it bad identified 
opportunities for profit 
improvement worth $600m- 
$800m over the next two years. 

Kmart yesterday recon- 
firmed that it was “a 
long-term shareholder" in 
Coles Myers, one of Australia’s 
biggest retailers. 

There has been a wave of 
speculation in Australia that 
the US group’s problems 
would prompt it to sell the 
stake in Coles. This amounts 
to just over one-fifth of Coles's 
equity and is worth over 
ASlbn (5714m). 

The announcement followed 
a meeting in Michigan 
between Mr Joseph Antonini, 
Smart's chairman, and Mr Sol- 
omon Lew, Coles chairman. 

Mr Lew said he was told that 
“the Coles shares held by 
Kmart are hot for sale”. 


Fiat package backs Polish car plant 


By Christopher BobfnsW 
hi Warsaw 

Fiat Auto Poland yesterday 
signed loan and equity agree- 
ments worth DM288.Sm 
(S168m) to help finance the 
expansion and modernisation 
of its car factory in Bielsko 
Biala, in Po land. 

Fiat took over the debt-laden 
plant two years ago and sales 
last year reached DMl.67bn. 
including exports of 150.000 


Cinque cento cars to western 
Europe. 

Now the European Bank for 
Reconstruction and Develop- 
ment has agreed to take a 
DM66m stake in the plant 
along with Simest, an Italian- 
state-funded corporation which 
is to Invest DMl6.5m. This 
leaves Fiat with about S3 per 
cent of the equity. 

At the same time, the EBRD 
is to provide 65 per cent of a 
DMl40m loan syndicated to a 


group of western European 
banks of which the majority, 
such as ENG of the Netherlands 
and Creditanstalt of Austria, 
have branches in Warsaw, 

The package was completed 
with another DM66.0m loan 
syndicated by the state-owned 
Polish Development Bank in 
the largest commercial syndi- 
cation organised in the country 
to date. 

The European Investment 
Bank (KIB) provided DMl7Am 


of the Polish Development 
Bank's syndication. This repre- 
sents the first tranche of 
DMBTm-worth of financing the 
EIB has committed to Fiat 
Auto Poland. 

Fiat is planning to develop a 
new small car for production 
at Bielsko over the next four 
years under a DMlbn business 
plan due to run to the end of 
the century. Fiat's investment 
to date in its Polish subsidiary 
amounts to DM437fo- 


Alfa’s fading badge gets a polish 

Fiat is reviving one of Italy’s most famous marques, writes John Griffiths 


A lfa Romeo, one of 
Italy’s most famous - 
but in recent years 
most troubled - carmakers, is 
poised for a re-launch by its 
owner, flat 

A programme is under way 
to expand Alfa's European 
dealership network by 20 per 
cent - requiring the appoint- 
ment of more than 200 extra 
dealers - to prepare for new 
models starting in the autumn. 

According to Mr Paolo Can- 
tare Lla, managing director of 
Fiat Auto, the first of the new 
range, a Ford Escort-sized 
sporting hatchback designated 
the L45, is scheduled to enter 
the showrooms in September. 

It wilt be followed by four 
other Alfa Romeo models by 
early 1996 under an investment 
programme which since the 
Italian motor group acquired 
Alfa Romeo in 1967 has totalled 
about L5,000bn ($3bn), says Mr 
Cantarella. 

He insists that there will be 
no let-up in the Alfa Romeo 
investment programme in spite 
of the problems besetting the 
parent company. 

Fiat ran up a net loss of 
Ll,783bn in 1993, its biggest 
ever. Flat Auto, the main oper- 
ating division which includes 
Fiat Lancia, Ferrari and com- 
mercial vehicle maker fveco as 


well as Alfa Romeo, lost 
U,756tm. 

The Alfa investment is rela- 
tively small set against a new 
model and plant programme 
for the automotive division as 
a whole which totals 
L40,000bn. It is seen by many 
industry observers as a last 
ditch attempt by Fiat to secure 
a long-term. Independent 
future for the group in 
Europe's vehicle industry. 

About half of this sum has 
been committed, according to 
Mr Cantarella. 

Alfa produced 130,000 cars 
last year, compared with a 
peak of 220,000 in 1989. While 
sales of Fiat-badged cars fall by 
0.3 per cent in the first four 
months of this year - com- 
pared with a rise of 3J) per cent 
for the European new car mar- 
ket as a whole - Alfa Romeo's 
sales fell by 149 per cent 

For the first time, Alfa 
Romeo is to launch its new car 
in all left-hand drive European 
markets simultaneously. The 
145 will go on sale in Septem- 
ber and other 145 versions will 
be added by the end of the 
year. 

An all-new Spyder convert- 
ible and new coup 6 will be 
added in 1995, followed by a 

fla gship luxury Saloon and a 

replacement for the current 



Paolo Cantarella: No let-up in 
Alfa’s investment programme 

Alfa 155 medium saloon. 

Mr Cantarella refused to 
project the size of Increase hi 
Alfa Romeo production to 
result from the new model pro- 
gramme. "But I can. assure you 
that we will recover the invest- 
ment we are making," he said. 

To further support Alfa's 
relaunch as a sporting marque, 
Mr Cantarella is spending $40m 
this year on motor racing - 
more than flOm in the UK to 
compete in the British Touring 
Car Championship. 

“Sport is not an option for 
Alfa Romeo - to invest in rac- 


ing is essential," he says. 

Fiat is hoping to inject fife 
into Its Lancia executive cars 
unit, which has also seen a 10 
per cent sales fall so far this 
year, through an expansion 
into the multi- passenger 
vehicle (MPV) market in col- 
laboration with Peugeot 
Citroen of France. 

It has put on sale a Lancia 
version of the MPV in which 
the two partners have invested 
some $l.5bn at their Sevel vans 
joint venture plant in Italy's 
Mezzoglorno and at Sevel 
Nord, a new plant near Valen- 
ciennes in northern France. 

Sevel is an acronym for 
Soctete Europeene de Vehi- 
cles Legers, set up in 1978 
with both Fiat and Peugeot 
holding 50 per cent share 
stakes. The plants have the 
same ownership structure but 
the French group has manage- 
ment control or the MPV facil- 
ity and the Italian group 
retains management control of 
the vans plant. 

Both Mr Jacques Cal vet, 
Peugeot's chairman, and Mr 
Cantarella say they are consid- 
ering further collaboration. 
However, Mr Cantarella makes 
clear that this is on a project 
basis and that there is no pros- 
pect of closer financial or 
equity links. 


Bugatti to seek market listing in New York 


By Andrew tffilln Modem 

Bugatti, the Italian luxury 
carmaker which owns Lotus of 
the UK, is to seek a stock mar- 
ket fisting in New York this 
autumn. 

Bugatti’s chairman, Mr 
Romano Artioli, told interna- 


tional journalists that the com- 
pany would seek more than 
$100m of financing through a 
US flotation. 

Bugatti. which is registered 
in Luxembourg but based near 
Modena, would float its shares 
in New York rather Milan 
because it was a more sophisti- 


cated market, Mr Artioli said. 

He said Credit Suisse First 
Boston would advise Bugatti 
on the sale. 

The car manufacturer re- 
launched the Bugatti name last 
year with production of the 
fastest sports car in the world 
and produced 80 cars in 1993. 


They sell for L460m-L55Qm 
($272,000-5325.000). 

Bugatti is 100 per cent fami- 
ly-owned although it is 
believed outside finance was 
needed for the L150bn re- 
launch. It is not known how 
much Bugatti paid General 
Motors for the Lotus group. 




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INVESTORS 

CHRONICLE 


THE CITY INSIDE OUT 









. , aw 


WEEK IN THE MARKETS 


Coffee down 
as grain 
prices soar 


Commodity markets enjoyed 
another rollercoaster ride this 
week with Chicago's grain 
marke ts taking over the impe- 
tus Cram coffee on the softs 
side. Heavy fond selling of cof- 
fee and copper posted prices 
down mid-week but both 
staged a partial recovery later. 

The bank holiday in the US 
and UK on Monday gave trad- 
ers time to worry about 
weather prospects for the main 
US grain growing areas. Their 
fears sent com and soyabean 
prices at the Chicago Board of 
Trade soaring to daily limits at 
the open of Tuesday trading. 

Chicago traders are worried 
that a lack of rainfall at key 
growing stages will damage 
the prospects for this year’s 
crops leading to large short- 
falls in grain stocks. 

Stocks are already depleted 
after flooding depressed last 
year’s harvest 

On Tuesday July soyabean 
futures hit their daily ifrnft. of a 
30-cent increase to S6.73V4 per 
busheL Although prices dipped 
again on Wednesday, the mar- 
ket remains buoyed by unsea- 
sonably dry weather in the 
Midwest Soyabean prices were 
pushing the $7-a-bushel mark 
towards the end of the week. 

OH prices rose sharply on 
Thursday as markets 
responded positively to data 
which confirmed continuing 
strong demand in the US for 
petrol. Strong economic 
growth in the US has pushed 
up petrol demand by 3 per emit 
over the same period last year. 

The price of the benchmark 
Brent Blend for July readied 
$16.72 a barrel on Thursday, 
but later slipped below $16^0. 

In spite of seeing a strong 
start to the week, the coffee 
market was nervous with spec- 
ulators and hedge funds eager 
to take profits from the mar- 
ket's dramatic rise over the 
past few months. The sell-off 
materialised on Wednesday 
when the London Commodity 
Exchange’s robusta futures 


contract for delivery in Sep- 
tember aWd by $56 a tonne to 
$2,035 a tonne. 

S imilar ly, copper suffered 
from a bail-out by hedge funds 
and lost $39.50 a tonne at the 
London Metal Exchange to 
$2,227^0 a tonne on the same 
day. However, traders are con- 
fident that coffee prices will 
remain buoyed by tight sup- 
plies. Analysts expect supply 
to be constrained until the new 
Brazilian crop cranes to market 
in August 

By the end of the week, cof- 
fee bad piarfp. up some of its 
earlier losses and was trading 
around $2,100 a tonne. Copper 
had flion staged a partial recov- 
ery with LME stocks showing 
another drawdown and prices 
rising $29 a tonne yesterday to 
$2^32 a tonne. 

Nickel prices tumbled on the 
LME following the weekend 
agreement about a new con- 
tract between Inco, the world's 
second-largest nickel producer, 
and labour leaders at its Sud- 


(Ai st Thuradsy-a dose) 


AtonMum -MOO »26BZ675 

MutMumotoy -1.140 to 41.080 

Gaa ptr -4JS0 to 487,360 

Ued +2650 to 338,125 

(MOM +796 to 137,208 

Z toe +9.600 to 1.142675 

Tta +200 » 23*80 


bury, Ontario, metals complex. 

Sudbury produces about 
110,000 tonnes of nickel a year 
and, although some weeks ago 
a ballot gave union leaders a 
mandate to call a strike, the 
market did not expect there 
would be industrial action. 
Nevertheless, confirmation 
that employees had accepted 
terms for a new contract just 
before the old one ended on 
May 31, resulted in prices foil- 
ing quite sharply. 

Analysts suggest the outlook 
for nickel is not wildly bullish. 
For example, the CRU Interna- 
tional consultancy group sees 
western world nickel produc- 
tion rising by 40,000 tonnes to 

576.400 tonnes this year and 
consumption rising by 4 per 
cent to 695.400. But it also pre- 
dicts a 6,000-tonne rise In Rus- 
sian pn f p n rts to the West 
to 123,700 tonnes which would 
give a supply surplus of about 

10.400 tonnes. 

Deborah Hargreaves 


WEEKLY PRICE CHANGES 



Lateat 

Cbange 

Year 

1994 


prlcea 

an week 

M> 

writ 

Low 

Gold per tray oz. 

538160 

-4-70 

*37460 

539660 

*36960 

Stw portray o z 

363 XlOp 

-865 

29460p 

38460p 

33S60p 

Akndnium 99.7% (cash) 

*13200 

-76 

*11486 

5132560 

5110760 

Copper Grade A (cash) 

*2234-6 

-216 

*12566 

*226560 

*173160 

Lead (cash) 

*wt«; 

+2.0 

*2886 

*61060 

*4266 

Metal (cwh) 

SB! 80.0 

-1806 

*67276 

*8290 

*52106 

anc SHG (cato) 

S95S.S 

-7.0 

*850 

*1014 

*9006 

Tta (ensti 

SS64U 

-476 

*52576 

*68606 

*47306 

Cocoa RAim Sep 

El 034 

+27 

£684 

Cl 034 

£850 

Coffin Futures Sep 

*2081 

+128 

*908 

*2247 

51175 

Sugar (LDP Rtwfl 

$2926 

+86 

*27560 

*2986 

*2526 

Barioy Futures Nov 

E98.7B 

-1.00 

£10560 

£9740 

£92.66 

Wheat Futtne Sep 

£88.00 

-160 

£133-85 

£117.50 

£9760 

Cotton Outlook A Index 

87.10c 

+0.60 

6065c 

87.10c 

62.46c 

Wool (84a Super) 

426p 

- 

357p 

428p 

342p 

CM (Brent Bland) 

S1419X 

-0.115 

*1840 

*15695 

513.16 

Per tonne urtara oBmiae aural pftraaAg. c Conn ta. * Jiiy 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 




Coupon 

Red 

□eta 

Price 

De/a 

Yield 

Week 

ago 

Month 

aflO 

Amtrata 


9.000 

0WD4 

1016400 

_ 

884 

871 

878 

Belgium 


7.250 

04/04 

987500 

+2650 

768 

7.7B 

760 

Canada* 


6600 

08/M 

885000 

-2.160 

966 

855 

856 

Denmaik 


7600 

12/04 

826700 

+1670 

811 

7.75 

7.45 

Franco 

BTAN 

8000 

05/98 

1046250 

+0600 

861 

048 

832 


OAT 

■ySflfl 

04«4 

87-4300 

+0680 

763 

7.18 

7.11 

Germany 


8750 

0504 

97.7300 

-0220 

767 

883 

800 

Wy 


8500 

01/M 

01-4800 

+0480 

asor 

9.72 

813 

Japan 

No 119 

4600 

06/99 

1056420 

-0280 

842 

364 

837 


No 157 

4.500 

0803 

1026010 

-0610 

4.15 

873 

364 

1 ■— 

rovurananaa 


5.7N 

01/04 

81 6600 

+1.830 

7.01 

668 

879 

Speta 


10600 

10/03 

1081500 

+0600 

965 

9.71 

967 

UK Gate 


8000 

08/99 

91-09 

+17/32 

810 

810 

765 



6.750 

11/M 

69-03 

+30/32 

833 

838 

82S 



80 00 

7008 

706-02 

+44/32 

868 

84S 

834 

USTraeeury 

• 

5676 

02AM 

92-04 

+17/32 

7.01 

7.17 

762 



8250 

08/23 

87-21 

+27/32 

727 

762 

763 

B3U (French Govt) 

6600 

04AM 

87.7300 

+0600 

763 

7.83 

7 67 


London dotoo- "Nn» Yor* mid-day 

t Ohm SKftKMo -BiKtUg humiup* on paystto by i 
Pnon US. UK Hi 32nd* ahn h AM 


Yfeidc Loc* <na*et standard. 


Sonar MUS tuamadonaf 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Mr Bill Clinton, US 
president, arrives in Britain to 
see Mr John Major, prime min- 
ister, at Chequers. 
TOMORROW: Organisation of 
American States holds annual 
assembly in Belem, Brazil. 
Elections for a constituent 
assembly in Ethiopia. Royal 
Academy summer exhibition 
opens (until August 14). 

MONDAY: Credit business 
(April). European Union eco- 
nomic council meets in Luxem- 
bourg. African foreign minis - 
ters start preparatory talks in 
Tunis ahead of African sum- 
mit. International Atomic 
Energy Agency board meeting 
in Vi enna. Start of financial 
Times World Gold Conference 
at the Royal Lancaster Hotel, 
London (until June 7). 
TUESDAY: Advance energy 
statistics (April). US wholesale 
trade (April); consumer cred- 
itCApril). Annual ministerial 
meeting of the Organisation of 
Economic Co-operation and 
Development in Paris (until 
Wednesday). Mr Bill Clinton 
holds talks in Paris with 
French leaders and is expected 
to address the French National 
Assembly. International 


DO YOU WANT TO KNOW A SECRET? 


TOeLp&QBrn Semin' wi ttwt you how he m&rfcdS REALLY writ The amazhg 
tradng MMques of ths togendny WD. Gam can tareese yaw pnAs end conBln you* 
tames. How? Theft to secret. Ring 081 4M ago to book vow FREE ptoco. 


One Chart Equals One Hundred Storie; 

5 cf-ar! .fc-u Un r v:?pc or. cm - !r.: t \ 
:-i pi -c! • rweircii-wed .jr-.c o, — i , ca dc--s 

■' ;='l O = V:3 K y Or ;. : . r J 

?ol ianefon ?t 7 .1 5 717.1 m? \ n r, - . 71 • vj -Ja- 


HNANOAL TIMES WEEK-END 


T1JNE 4/JUNE 5 1994 


COMMODITIES AND BOND PRICES 


BASE METALS 


LONDON METAL EXCHANGE 

(Price* from Ar i a faa n ato d Metal Tradtag) 

■ ALUMMUM. 09J PtffiNIY (* per tonne) 


Precious Metals continued 

■ QQIJPOOMB{(100TmyagjSArayaag 



Craft 

Sltfto 

Ctoao 

13256-85 

13546-6 

PraMoua 

1320-21 

1349-50 

hSgMow 


1361/13*8 

AM Offlcta 

13226-3 

IS 16-26 

tot dose 


1382-3 

Open InL 

2587B7 


Totri dtoy tunovo- 

30652 


■ ALUMMUM ALLOY (S per tonne) 


Cton 

1380-70 

13806 

Prwrioua 

13*0-50 

1345-60 

Hri*>w 


1380 

AM Official 

13*5-55 

13806 

Kara ctoae 


13606 

Opto int 

3,422 


Total deDy Uiww 
■ LEADS par tome) 

462 


Ctoae 

803-4 

521-2 

Pravfcua 

501-3 

616-20 

High /tow 

8066 

626/520 

AM Official 

8066-7 

5236-4 

Kart) ctaee 


524-8 

Open taL 

36,188 


Total daBy tnnoaer 

4672 


■ MCKB.CS per tom* 


Ctoae 

8175-86 

8265-70 

Prevtaua 

8180-70 

625060 

HgMow 


836Q/B22S 

AM Official 

8140-6 

6230-6 

Kara doee 


6370-80 

Open Ini 

56,428 


Total daBy turnover 

14682 


■ TW (3 per tonne) 




price taaage W M U, 

JM 3807 -03 3809 3708 3,802 962 

Jri 3B1J -U - - - - 

Mg 3832 -16 38U 3B23 77,475 17.407 

0d 3864 -16 3896 3856 5650 1M 

bk seas -as aete sees 24,1 ae ibi 

M 3011 -&6 SOSil 3010 S£11 04 

TM 141034 11142 

■ mmUM NVMBt (BOTtay cej Sftray <aj 

Jri 3013 -as 401.3 388J) 14£86 1,753 

Oct 4012 -U 4BU 3882 4^23 BBS 

Jra 4032 -as - 1282 2 

Mr 4066 -22 4072 4052 083 8 

TOM 82*4 222B 

■ RALLADtU8iMYtgX(1QOT>oy Cg^S/ttoy tgj 


GRAINS AND OIL SEEDS 

■ WHEAT LCE C per tome) 

sm to* am 


SOFTS 

■ COCOA LCE (Ertonne) 


MEAT AND LIVESTOCK 

- , r.Tntac HQ,ooot« c*ttaa»n 


He* 8176 -080 


■tatf 10170 -020 - - 290 

TM V4B 28 

■ WHEAT C8T foQOQbu min; cmmJeab bushel) 


bra 

tat 

W 


rika ta 

•to* 


11150 

478 

s 

Jal 

1011 

-7 

1014 

sue 

489 

22 

SM 

1934 

6 

1038 

9870 

1*70 

132 

Dec 

1085 

6 

1067 

10890 

1,248 

51 

Mr 

1074 

-4 

107S 

ire on 

357 

29 

Nra 

1085 

•12 

1085 

- 

298 

*w» 

298 

Jri 

Total 

1095 

-12 



Jri 1095 -12 - * 

SL na<3o 

■ COCOA CSCE (10 tartriflfCS'kinrtos) 


Jri 

330/4 

-0/2 

331* 

325*122.170 38575 

JM 

1382 

-10 

CM 

337/4 

-0/2 

337* 

332/D 4V4G0 

8B8S 

sm 

1980 

-10 

Dec 

349/4 

+1/2 

35043 

34319 82.140 14988 

Dec 

1422 

6 


352/4 

-M 

35ZA 

347/4 7,179 

445 

Mar 

1458 

-* 

Nay 

342/4 

+-1M 

3454) 

342/4 285 

- 

MM 

1475 

-10 

Jri 

32519 

-2(9 

3284) 

32 VO 990 

85 

jh 

- 1487 

-10 


Jta 

13850 

+065 

tyuw 

134*60 

183 

35 

SM 

13560 

+065 

m « 

moo 

1386 

255 

Ora 

13825 

+008 

- 

- 

743 

1 

Mar 

Tttd 

13525 

+005 

■ 

- 

6 

4288 

291 


■ BMBicaecajjijwiBjftMjgM 


An 3202 -7.7 - - 82287 21287 

JM 3307 -72 8442 5300 - 

M| 3332 -72 - - 13,158 1222 

6 m 6352 -72 5472 53S2 16,721 1247 

Bac 5410 -7 2 5500 3432 32 

Jm 5447 -72 - 5705 22 


ENERGY 

■ CTUDE 03. WTMEX (42.000 US 8*0*. Wbm*8 


Ctoee 
Prevtoua 
Hlgh/kiw 
AMOfflcU 
Kerb dose 
Open tot 


6640-5 6015-20 

6506-25 6680-000 

S64SVS808 
5530-5 6605-10 

5815-20 

16247 


Total dsfly turnover 3,137 
■ aHQ,apoctaHiltf» grade (* per tore*} 


Previous 
FBgh/taw 
AM OfOdai 
Kata do** 
Open InL 


9&S-6 080-1 

854-6 879-80 

0881078 
8S3-32 078-15 

970-80 

105^23 


price taraga W U> H W 

M 1725 -028 1830 1721107290 SS3S4 
MO 1728 -034 1720 1724 67,79 0 31560 

Sip 1722 -022 1720 1720 31108 14J78 

Oct 1721 -021 1722 1720 23238 5,138 

lira 1724 -022 1720 1724 18200 2202 

DM 1722 -220 1720 1722 28257 5,435 

TOW 410223121514 

■ CRUDE OLPEIStoiri 


IBM 233225 54,791 

■ MABE CBT (5600 bn mhc Ctota/B81> buaheQ 

Jri 273/0 -8/0 27 V0 272/0538275 123200 

Sap 258/2 -an 274/0 287/6171030 14,780 

DM 251/2 -0« 267/4 281/0470,40511*1® 

mm 258/2 -M 273/D 2BBJ0 61.120 3280 

Her 273/4 -710 277/2 272/4 7,030 440 

Jri 272/4 -98) 277/4 272/4 11035 1210 

Tatri 120X268215 

■ BARLEY LCE (E per tonne) 

SM 8750 -025 0775 0775 170 2 

mm 0875 -005 - - 323 - 

Jm 10025 30 

Mr 10115 -0j60 10200 10200 10 2 

mj 10400 -0J5 4 

TOtri 537 4 

■ SOTABEANBCBTp^OCteataCtataWhltatta 

Jri 68BO -13/4 asm 679/4274X5 83210 

Am 684/4 -13/4 60841 87841 84,740 11755 

SW 6714) -18/4 682/4 668/4 48210 1945 

mm 9584) -17/4 87241 6554)282795122360 

Jm 884/4 -1*4 6754) 8B041 24*60 1410 

Mar BBSS -10/4 680/4 885/4 10670 840 

TOtri 75120 0 24B/B30 

M SOYABEAN 08. CBT tBOflOOttra centa/fc) 


Her 1456 -4 1450 1440 6783 410 

•ta 1475 -10 1480 1467 2J»2 JB 

Jri - 1487 -10 - 2786 » 

TKri 807*011/835 

■ COCOA QCXX9 (SOR-a/tonne) 


U) |M 

“ w 

JM 81425 -1-375 S4JB0 K13M 15.1= 1» 

M* 63JJ50 -1.100 04.125 6360 25.476 6571 

ft? 08675 -DOTS 67.400 81460 11648 1JM 

£ SS S SUM WSD JW 880 

u JL450 6S.75D 89.150 1095 248 

S JS Timo mooo wn tti 

Ml 

01 UV6HQ<»CME(4O.000B«certto1ba} 

^ 4* ISO -0JJ50 41700 4&0S0 1810 2J77 

M 45050 -0800 48.750 *5000 10JJ19 2280 

fL -0750 45X75 44500 1528 1J14 

oS 42700 -0275 41000 42450 1530 705 

DM SS ^400 41700 41200 2088 3« 

M 43.850 -4X250 43.775 41600 712 42 

* 20X7 7JW 

PORK /” 1 » CME (4nq00to*: carta/to^ 


i rdi "’' 


BOOB MR 

WELCEgrtom^ 

2121 +14- 2167 2115 11S81 1^05 

2001 +10 2145 2085 15^50 1^71 

2058 +7 2105 2050 1843 821 

2044 +2 2088 2040 6380 IS 

2001 +6 2040 2000 2488 S3 

ISOS -18 2010 2010 90 0 

42729 4.TM 

g W CSCE pr&XMm; catattaQ 

124J6 -170 12820 12320 20.415 5209 

1Z2J0 -125 12150 121-50 11448 1414 

1t&55 -ISO 12100 118.15 11779 909 

11870 -1S5 11825 11850 6301 TOO 

11875 -4128 11720 11850 737 89 

11850 -150 94 8 

9141110^08 

=EE QCOHUS eenta/pouncf) 


41225 -OJ50 42.175 41.150 4J48 Z133 

4OS00 -1JV5 41275 40250 3200 1222 

4&O00 -1250 51175 47250 395 60 

47.125 -1.775 47200 47.125 33 0 

51250 - <a90D » ® 

50200 - ' - 1Z Z 

8232 1228 


LONDON TRADED OPTIONS 

SMkapricettanM — -CX* PIX— • 


Total dafly twnarar 26241 
M COPPeB. grid* A ($ per tonne) 


Ctoae 

22346 

2243-4 

Prnvtoua 

22205-16 

2231-2 

Hgh/low 

2232 

2262/2228 

AM Offielai 

2231-2 

2230-40 

Kerb ctoae 


2260-1 

Open taL 

208y44O 


Total ddy tunover 

71.119 


81 LME AM Offleta E75 rata: 16062 


LME Ctotatg £/5 ratae 16066 



J« 1023 -0.19 1140 1117 81332 22284 

4*0 1110 -0.15 1620 1108 3BJDB6 11430 

Sap 1105 -021 1820 1101 11321 3JBB 

Oct 1622 -023 1118 1520 1446 1,448 

mm 1526 -126 1110 1526 5£61 232 

Dec 1525 -024 1826 1526 5787 -380 

TOM 148298 41,110 

M IEA1WQ OIL NTIGt <42200 US gM; OUB gribj 


Jri 2720 -079 2853 2775 25253 6548 

M« 2727 -080 2847 2770 14,468 1438 

Sm 2770 -020 2820 2726 10217 920 

Oct 2720 -027 2725 27.15 7267 620 

Dm 2620 -073 2728 2820 20 2k) 1374 

Jm 2820 -070 27.15 2820 2283 71 

ToM 54224 13773 

M SOYABEAW MEAL CBT (IDO tone; Vtor^ 

Jri 1083 -22 3002 1982 29254 8242 

Am 1985 -26 1995 1962 16534 2598 

Sap 197.7 -25 1902 1984 10513 1579 

Oct 1962 -24 1972 1947 5J84 332 

DM 1852 -11 1985 1935 T7.40Z 3517 

JM 1962 -25 1915 1042 1,721 13 


■ POTATOES ICE g/tonne) 


SpotIJOSfl 3O0K15038 6mte15022 9MM1J009 
H MGH GRADE COTPSt (CCAEX) 


Jri 4110 -040 4105 4720 467SB 17213 

AM 4826 -052 4849 17462 11458 

Sap 4885 -047 5070 4040 11757 2267 

Oct 5000 -0.42 5155 5020 7,162 445 

mm 5150 -042 5120 6150 9247 267 

DM 5240 -042 5220 5Z.10 KS35 1210 

Tatri «9 8 38423 


JM 260.0 

to 9111 - - - 

Mr 1052 

Apr 1262 -02 1202 1285 

Her 1*05 

JM 1075 


Triri M N 

■ RtBGWT CB5TEX) bCE (SltVIndw polnf) 


Jmb 2 Me* RM.AV 

ft— p 11557 11177 

ISMaMp 11523 1M27 

M Mo7 PBHMUM RAW SUGAR LC£ (cmts/ltn) 

Jri 1233 +028 1235 1232 2712 100 

Set 1240 +103 - - 1206 

JM 1122 

mm 1203 +027 ® 

Triri 3208 100 

M WMTE 8UGAH LCE CS/torcw) 

MM 34750 -060 34920 34750 12261 236 

Oct +170 32940 32840 1853 25 

DM 31150 +040 31020 31020 704 3 

Mar 31778 +110 31110 31750 2406 129 

Mff 31750 +070 - 205 - 

Am 32020 +070 - 235 

Triri 31618 303 

■ SUGAR 11* CSCE (1120000)*; centa/taa) 

Jri 1209 +027 1218 1201 42591 1694 

tti 1211 +023 1220 1200 56474 6260 

MV 1124 +002 1122 1177 34590 811 

Mm 1121 +002 1120 1123 3208 81 

Jri 1178 4002 - - 1483 7 

Oct 1129 +002 1170 1166 887 20 

ToM 128,73416443 


■ ALUMMUM 

(99.756) LME 

1325 

1375 

1426 

■ coppen 

{Onto* A) LME 

2200 

2250. 

2300 

M COFFEE LCE 

2100 

2150 

2200 

■ COCOA LCE 

960 


Nov Aug Nov 

95 » 37 

68 50 SB 

46 B3 83 


B75_ £ 

1000 — 24 

M BRB4T CRUDE IPS Jri 

1550 — ; 

1600 42 

i860. 18 


Nov Aug Nov 
117 42 64 

93 63 MB 

73 88 137 

Sep Jri Sap 
201 74 210 

181 101 240 

164 138 273 
Sop Jri Sep 
105 2 21 

88 5 29 

72 13 38 

AUQ Jri Auq 
10 - 
68 20 47 

48 - 




LONDON SPOT MARKETS 

■ CRUDE OIL FOB (par borreWri) +or 


p,aw | 516,16-579* -0725 

Brant BMid (bated) 518.06406 -0.186 

Brant Blond POD $1116670 -6-185 

WXL (ipm esQ 517.986.00* 4.10 

■ OB. PRODUCTS NWEpnwtf daOwy OF (*onn<l 


■ GAS OB. Ft {Stone) 


Jen 

10110 

+135 1(0.10 103.10 1.128 

84 

Jri 

103.10 

+120 10320 10165 35613 

118 

AM 

moo 

+120 - - 500 

9 

Sri 

10280 

+160 10290 1D1JSS 10,121 

2 

Oct 

10250 

+160 - - 228 

- 

g« 

Tatri 

10230 

+120 - - 202 

57348 

549 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(PHCM ■gpBM by N M BrihMhDd} 

Grid (Tray ozj S price Esqriv. 

Oom 380.76-38175 

Opening 38176684.10 

Morning fix 38175 254.116 

Afternoon fix 38275 254730 

Da/e 3837068470 

Day’s low 3807568075 

Previous don 383.10-38150 

Loco Lrto Msan Gold Lancfeg Ratea (Vs USS) 

1 mornti 474 8 worths _+44 

2 month* — 478 12mcrthe 

3 months — 4.18 

SArar Rx prtroy to. US eta sqriv. 

Spot 35475 53175 

3 months 3SS70 630.75 

6 months 36140 54570 

1 year 37140 662A5 

Gold Cotas 5 price £ oqriv. 

Krugerrand 389692 258-281 

Maple Lari 381.1669370 

New Sovereign 8663 6663 



price 

DWV 

taaaaa m* 

Low to 

M 

Jra 

16Q30 

-230 151 35 15030 23.756 

5309 

M 

15165 

-225 152J5 

15130 20206 

5381 

tag 

15260 

-2-75 18430 

15250 9618 

1321 

sm 

15450 

•230 15630 

15425 6394 

386 

Oct 

15765 

-275 15275 

15756 6,757 

173 

tar 

16930 

-330 16050 

15025 4,469 

408 

Total 



•MB3 MJB80 


jh 

1293 

6 

1297 

1283 

726 

Jri 

1208 

-12 

1215 

1209 

938 

tag 

1234 

6 

12(0 

1235 

387 

Oct 

1298 

6 

1298 

1298 

221 

JM 

1332 

6 

1333 

1333 

83 

Sto 

Total 

1343 

6 

- 

- 

a 


■ COTTON NYCE QM7008J*: eanto/teri 


8172 -077 8X00 6171 11252 1717 

7878 -002 7180 7115 1196 588 

7876 -074 7175 7845 2<7B 1586 

7748 +003 7770 7770 1194 298 

78.00 - 7870 7775 1,741 158 

7143 +600 404 78 


Premium Gasoine 

Gss 08 
Heavy Fuel OB 
Naphtha 
Jri Puri 

fnnlmiii Apus B*i 
■ OTHER 


5187-188 -07 

5146-150 67 

$84-87 +27 

S157-1S0 -2.0 

5180-102 -27 


■ NATURAL GAS MMBC (M700 nMBi: SAnriBta) 


1737 -0714 1780 
2791 -0721 1 
2090 -0017 2105 
2145 -0716 2105 
2230 -0015 2245 
2730 -0715 2750 


Low M W 

1735 25.1X 11833 
2030 11975 4.162 
3 ran i9 tw+ 2,456 
2148 9735 1708 
2230 10712 832 

2730 15732 1,138 
127768 36767 


■ ORANGE JUICE NVCE pSTOOtb*: certa/tbe] 

Jri 9140 -075 10100 0920 117ZB 977 

SM 10175 -076 10270 10170 5.484 760 

mm 10140 -070 10870 10290 1.488 200 

JM 10400 -070 10800 10475 2708 155 

Nri 10676 -073 10825 10670 1,124 130 

■In 10875 -075 26 1 


26 1 
22968 2224 


UMIUCB) GASOLINE 
ffllEX (42709 US rite cABpttT 


pries top IMA Lew tat Vat 

Jri 5270 -0.75 5375 5280 52256 21,178 

/tag 5270 -068 5370 5246 21772 1330 

Sap 5175 -062 5270 5170 11748 1353 

Oct *090 -047 5030 9000 1790 938 

DM 4890 -054 4210 4190 1312 BE 

DSC 5270 -084 6110 52.70 2309 90 

TOM 957<7 31029 


□utog th* weak pricM ai both Mack and MM* 
pepper went up drattoMy, reports Man-Rrod- 
uctan. knpaov tag demand from American biv- 
m tor l*gar quantUea sent up pricaa to IrxSa 
. id I n rlmra to Immsrietaly wtfcti toricaeas hoar 
th*n“the msrirat ta fftsaa-days. In tha 08. 
-tiMkat spot btack pepper- Improved ip about 
US$856b and to Evopa the gmda 1 went 143 to 
about US$1,780 The write pepper price want 
up to abotf USS2750 spot and rie a rtay Mlp- 
mart poaWon i . Stooe tha new crop white pep- 
per can only be «pect*d as from August 
un w ftris and *xX stocks to Europe and the 
USA are reefly amaB era might expect stD 
higher levels. 


VOLUME DATA 

Opn t nt arae t and Vriuna data shown tor 
conbad a traded on COMEX NYMEX, CRT. 
NYCE. CUE. CSCE and PE Crude 09 are one 
day to arrears. 


INDICES 

M HBITHtSpaaec ia«qi-10^ 

Juu 3 -kai 2 manta ago year ago 
19718 19877 18787 18806 

M CRB Rrintea (fjuwtc 4/W5ft»10H 

Jun 2 Jun 1 month ago year ago 
23475 23374 224.11 20099 


Gold (par boy 02)4 

Storar (per troy otW 

Plrifrun (per troy az) 
Pritoriun ft»er trt» 
Copper (US prod} 

Lead (US prod.) 

Tin (Kioto Lumpur) 

Tin (New York) 

Ztoc (US Prime WJ 
Cato* (taw wrighQt 
Sheep Ohm wrighi)t4 
Ptg« (Bve vra/g rt ) 

Lon. day sugar fm) 
Lon. day sugar (wta) 
Tata & Lyle export 
Barley (Eng. feed) 

Mrize (US Na3 Ye9oe4 
Wheat (US Daric North) 
Rubber (JuflP 
Fktober (Aug/V 
RutbwO<L RSS Nol Jun) 
Coconut Oi.pNOS 
Prim 09 (Mriay-)§ 

Copra (Ph0§ 

Soyabeans (US) 
cotton Outlook A Index 
WOoftops (64a Super) 


w.C ■ 


t per tarn wVan attmtaa stand, p pwtoa/lg. c cantata, 
r ttaeririta- m Uriwat*i oanwta. « OWDec z AxVJuL y 
Jun. w Jri. f London Rqielcn. 5 CS 7 Boomlwn. 4 Briton 
mtoat dees 4 frwp the vripa pdoed. - Change on 


US INTEREST RATES 


71« IWob 

S tan 
a* «a 
- Onrja 


Traesmy BS8 aid Bond Ytakk 

38* ton ye* 

288 Ttzeeje* — ; — 

42* Fke jer 

4JS KHrer 

521 30-yMT 


M LONG GOT HfTUREg OPTIOWS (UffE) £5070° 64ttn Ot 1QOX 
Stoke CALLS PUl» 


■ US TFBASUHV BOND BIIURBS (CBT) 5100700 32ndeoMQ0ri 


533 

Price 

Sep 

Dec 

Sap 

Dec 


Open 

Latent 

Change 


Lw 

928 

102 

2-80 

3-02 

2-80 



104-23 

104-07 

-0-15 

105-12 

104-00 

732 

751 

103 

2-00 

2-57 




103-28 

108-09 

-0-15 

104-20 

103-01 

104 1-3B 2-12 3-3» 0-1* 

Sat. voi. nat can 12157 Pm lOCSB. Prwvtou* day's epra to. Ctot 33713 PM 22030 

Dec 

103-04 

102-18 

-0-17 

103-22 

102-13 


BOND FUTURES AND OPTIONS 


France 

M NOTIONAL FRENCH BOND FUTURES (MATV) 


leu 

■ ECU BOND FUTURES (MA7TQ 



Open 

Sett price 

Chtoge 

HVi 

Low 

Eat wL 

Open taL 


Open 

Sett price 

Change 

Hgh 

Low 

Eat voL 

Open tat 

Jun 

11068 

11760 

+1.42 

11760 

11868 

321,978 

94,724 

Jill 

8360 

8460 

+160 

8460 

8360 

2,170 

7678 

Sep 

Dec 

116.72 

11462 

11864 

115.44 

+162 

♦162 

11864 

11462 

11464 

11468 

38,710 

102 

48691 

8,770 

-Sep 

8368 

84.00 

+168 

8364 - 

8268 

1,199 

1688 


Japan 

a NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 

(UFQ YiQOm IQOtha ol 100« 

Opto Close Change Ugh Low EeL wot Open taL 
JU» . 11175 - - 11175 11071 243 0 

Sep 11070 - - 11073 10979 5914 0 

* UK tmWau t t Md* on APT. AM ppm Vtmri Spa. era for fnkxo day. 


■ LONG TBtM FRENCH BOND OPTIONS (MATIF) 


Strifes 

Price 

Jri 

— CALLS — 
Sap 

Dec 


— pure — 
Sap 

Dec 

m 

165 

267 

- 

1.20 

161 

- 

117 

nm 

160 

. 

- 

267 

- 

118 

0.45 

1.18 

160 

- 

262 

- 

119 

068 

0.75 

. 

- 

364 

- 

120 

aio 

061 

- 

- 

468 

- 


FT- ACTUARIES FIXED INTEREST INDICES 


Labour Organisation holds 
annual conference in Geneva 
(until June 17). Nationwide 
Building Society publishes 
annu li results. 

WEDNESDAY: Index of pro- 
duction (April). Housing starts 
and completions (April). Euro- 
pean Union environment coun- 
cfl me ets in Luxembourg. 
THURSDAY: European parlia- 
mentary elections in Britain. 
Ireland, Denmark and the 
Netherlands (rest of the Euro- 
pean Union on June 12). 
Details of employment, unem- 
ployment, earnings, prices and 
other indicators. Regional 
trends 29 - 1994. Nate foreign 
affairs ministers meet in Istan- 
bul. Bundesbank council meet- 
ing. By-elections at Eastleigh, 
Bar king , Dage nham, Newham 
North East and Bradford 
South. 

FRIDAY: Usable steel pro- 
duction (May). Construction 
output (first quarter). R»i«n^ 
of visible trade (March). US 
producer price index (May). 
European Union fisheries min- 
isters meet in Luxembourg. 
All-India Congress committee 
meeting In New Delhi (until 
June II). 


Em. vri. Uri, Cria <2418 An 20383 . Praokxa ep*> M- CMi 292,127 P» 22&2M. 


1 Up to 5 ysaa 

2 5-15 yrare (22 

3 Ov*15ywrs| 

4 kradeemAfes 

5 Al stocks (51} 


Fri 

Jm 3 

DayV 
change % 

Ttnr 
June 2 

Accrued 

Interest 

aria* 
7* rid 

12268 

+074 

12138 

237 

464 

14168 

+160 

14030 

267 

562 

18039 

+1J2 

1S769 

338 

438 

17936 

+261 

17465 

1.18 

868 

13963 

+1.16 

13764 

230 

432 


8 Upto5yaanm 

7 Over B ysn (rQ 

8 AlstocMtl^ 


Lowcoupa*|lrid- 
June 2 Yr ago Wflh 


Juna 3 June2 


Fri 

. Days 

Hwr 

Accrued 

ad a4 

Juna 3 

change * 

Jta» 2 

tamst 

ytakl 

18565 

+068 

18464 

nm 

263 

17439 

+139 

17262 

161 

139 

17461 

+131 

17268 

168 

1J7 

128L32 

+268 

Junes June 2 

12864 

■W 5 T“ 

268 

V— 

462 

Low 


Germany 

■ WOTIOWAL TCRMAN BUMP FUTURES (UFFg* CT4Z80700 IQOfrW of 100% 


8.34 7.11 8L49 fl/G 5-57 tWI} 878 &51 - 

8^8 &08 879(1^ eTOteVli 844 863 

8.48 828 875 «/§ 841 QOfl 844 863 

860 854 888 (1/W 862 0*n) 

WMan rate 5% - 

374 278 894 (1A9 2.13(471) 275 276 

377 377 373 (Vw 278 POK) 371 378 

6 yeare 

9.76 859 976 (1/6) 7.19 (ItVIJ 847 8.71 

i yMda are rianm aba*. Coupon Banto Lowe 096-73*96; 



Open 

Sritprioo 

Charge 

Wgh 

Low 

Eat wri 

Open tat 

Jm 

9263 

9369 

+1.07 

936B 

9261 

90291 

70246 

Sap 

91.74 

Qi> nq 

+165 

9330 

9166 

173015 

100100 

Dac 

9166 

9269 

+163 

9165 

9166 

57 

448 


■ BUND HfTURES OPTIONS (LlFFg 0*4250.000 potola gf 10096 


Up to 6 yra 3-72 
over 5 yra 879 ! 

Petra A lowna — 

9 77 __ I 
Average groae ndanpthn 


774 870 i 
844 8921 
864 892 1 


837 886 776 871 

877 B70 871 824 

859 873 878 975 


5,71 (WI) 

m Ziyi) 

886 PW) 


2.13 (471) 
278 pQn) 


275 286 

371 378 


Mtritan rata 1096 
273 276 (1/5 
379 874 (1/6 
— ISyawra 


940 890(1/9 r&pOH) »40 9-68 854 974 (1/8) 749 BOH) 

Olbk 896-103(96; Writ: 1196 end ovar. t Bat ytrid. ytd Year to data. 


Strike 

Price 

Jri 

Aug 

CALLS - 
Sap 

Dec 

Jri 

tao 

PUTS 

• Sep 

Dac 

9250 

1-03 

168 

167 

169 

064 

099 

168 

160 

9300 

0.78 

1.11 

160 

164 

067 

162 

161 

2.15 

9350 

064 

068 

1.15 

161 

1.18 

167 

1.76 

262 


FT FIXED INTEREST INDICES 

June 3 An 2 June 1 Mm 31 May 27 Yr ago W Low* 


BO. VOL ML emu 27438 Put* 18B43. PnriM WWs open M, CM* 1*2118 Mi 134818 


Govt Saca. (UK) 9272 8289 9174 91.73 9376 96.18 10774 9174 
Fried Hereto 10948 10812 10973 11070 111.16 111.71 13377 10812 
• fer 199*. Oorananare 9KwUae MM* *»*» copMaUon: 12740 RrWKL Uw 4818 (tM3 fried M 
28 wet Ftoad kaeraat 1928 SE actMy Mcaa rabaaed 1974 


CELT EDGED ACTIWTTY INDICES 

Jtw2 Jim 1 MM 31 May 27 May 28 

®9* Edged hargatae 1107 1084 85 7 837 13ZO 

5-dM W O* 1023 1087 104.7 1085 1086 

t Writ Wnce camp ta ton: 13877 (21/VM). to* 60J3 pn/>M.BH lOOjQmramraaa ^eurira WW 


■ NOTIONAL MBXUM IBM GERMAN GOVT. BOHO 

OOBUgJffg* DM250700 IQOtha ot 10096 

Open Sett price Change >*Dh Law EeL vet Open tat 
Jun 9848 6810 +050 9875 9645 249 899 

Sep - 9845 +031 0 60 


UK GILTS PRICES 


-1994- 
PdcaE + or- taft Lev 


to Rad Pifcac+cr- 


— 1904 — 
Ij9 Law 


Id- 1984 — 

W Pries E +or- Mri to* 


Italy 

■ NOTIONAL ITALIAN GOVT. BOfO PTO FUTURES 
(UFFET Lira 200m lOOtta of 10096 



Open 

Sett price 

Chenge 

rtgh 

Low 

Eat vri 

Open tat 

Jun 

107.65 

10091 

+163 

10865 

10765 

34777 

27638 

Sep 

10005 

10763 

+169 

108.06 

10660 

50315 

47849 

Dec 

■ 

107.89 

+166 

- 

- 

0 

0 


M ITALIAN GOVT. BOND (BT^ HIIUHEB OPTIONS (LlfTg LkaflOOm IQOtae Ol 10096 


Sttae 

Price 

Sap 

■ CALLS 

Dec 

PUTS - 

Sep 

Dec 

10750 

2.47 

062 

268 

363 

10800 

a on 

027 

261 

368 

10880 

166 

365 

2J7 

368 

Ext rd. tuH, Ode 1400 Pria 839. Piavtoua ttyV open to, Odk 15977 ftra 18898 



StortT $IH8 MM Raa Wand 

1ton1Cpcto.1994»- KUO 

SBh12»iJJCl»* — U39 

7M9PC199*» 888 

1MC189S 1161 

U3totaB9IF«5 30B 

iriBPcwas — - 9J9 

Ttaaa i21ipc KBStt— 1171 
14pe1«8 1258 

Ball 1Skec199Gt4 1139 

omtaiopcTwe.— ac 

QraTpcISem 7J(D 

ItaMUtoCigSTtt— . 11-94 
Eaai0>toClM7 978 

TMaApeiwtt — MJ 

BM15pCl967 1240 

9ltfCl98 92S 

JMW7VM1988J*-— 740 

Tw 6**: 1995-98#- 791 

1MC99-1 !!■ 

TrnmiShtc-m 

Eat 13*1999—— 1058 

203 


- lOCbd 
*45 101ft 
*98 19! 6 
5JB KMC 
598 98>e 
179 iwa 
819 ros% 
M2 111B 
572 114ft 
872 111A 
7.14 108% 
796 9P) 
7J1 113ft 
798 I OT 3 ! 
7-S 1033a 
776 120ft 
796 105*| 
778 98 

7.79 96ft 
UK 11353 
775 128ft 
8.13 113ft 
896 106* 


105 A 100 
10^ 101ft 
10W Wifi 

wa 10*34 

98V 87V 


1070 1046 
113% IQBft 


117* ini 
T2JB 114b 
ii7B mV 
1i%& 1053 
10O& 966 

iaa it3*« 


10x303 971 

Trwt 111** 2001-4 — Tail 

neMApeW* *83 

tl— Mu 9hPC3X>*~ 670 

1Waa83^eSa0t» 796 

Quri >2 pc 2005 869 

Trees 12^: 2083-6 — 1021 

ThpcBOe# LIB 

Mc3XB-6tt 868 

TWaeTiVpc 2003-7 — KLOB 

TrtraBJ*«20B7tt 844 

KfcpcIM-B 1043 

UBaateZOOBt* 698 


860 108*1 +1£ 
872 113V +U» 

74S 72>b 

M8 10® +14 

630 «a +A 

848 100V +1A 
821 122ft +1* 
842 Wfi +1* 
860 95ft 
869 118ft +1 ft 
839 100B 4-1 & 

571 188V +1ft 
538 104% +10 


1Z7fa 105V 
129ft 111V 
■8A na 
725a I93& 
105V 98 

125V noil 

1434 1104 
11% 91V 
111V V»* 

138 & 1T3*i 
1174 9BH 
1514 1250 
124ft 101 


S* 1 *— P79» 270 362 19Bft *4 203V t 

JKKr-W HS ^ ] 


S**- FB3! &28 367 IS5V 

pB6» 336 398 1S2& 

*VPCTJ«« (135-6} 338 368 109V 


2&CTO (7&M 155 178 1 .... 

Vsi Jl“ 2S2 378 1873 +1? 178V « 

aaz L79 130 +1A 146V 127V 

MB OC 1M +lS W74 !». 

3J0 364 1SZV +.14 >SW 728V 

-W-h 370 362 ion *14 1394 1W 

365 109V +14 12M lOBV 

ena w WL M Fw«a ta par n gi ojaj tao* RP1 base tar 
8 m onths prior to leauG end here bean adtatad to 

raflDctrubBJU' grtHPite ,opj, 1W7 _ CopvMion te^r 

a»*5. RP1 fer Sapeandwr 1833: 1*1«and fer Apr* 1084: 144A 


338 367 (S5V +1 175V 

336 398 1S24 +14 173V 18ft 

338 368 109V +-1V 11#V W7H 

344 398 189 +1V 184ft 166ft 


+U WM 14 
+1V 175V 


1144 1084 

n04 ioiB 

131ft 115H 

a a 

HP 

iVi 118% 
M04 1384 
125ft 1124 
1184 103V 


Spain 

■ NGTKJftAL SPANISH OOTS) FUTURES (MST) 



Opto 

Sett price 

Change 

»S* 

Low 

Eat »0L 

Opm Int 

Jin 

9366 

9364 

+068 

94.12 

93.18 

566® 

108,473 

Sap 

9290 

9361 

+068 

9369 

3261 

11608 

29£B1 

UK 

■ NOTIONAL IRC GOT FUTURES *6^ SOOfiOO 32nds of 100* 



Open 

Sett price 

Change 

MS* 

Low 

Eat wl 

Opm fat 

Jun 

101-28 

103-09 

+1-12 

103-14 

101-08 

11803 

94922 

Sep 

1 GO-23 

102-00 

+1-12 

102-08 

99-28 

128448 

103737 

Dee 

8960 

101-4)0 

+1-12 

99-20 

99-20 

74 

70 


FriatoRtaealton 

Ml UVto 1999 1061 

TMIDVPIBB 962 

tottain# — « 

CmraMo IDVfElSM- 9*8 

Twee ton twi -99 - 

Rk 2000ft ,«« 

THto13pc2D9Q 10.77 

lOpcZOOl -■ ■ - 962 

TpcWtt 796 

TpcDIA, 767 

9V8S 13302 H4 

8pe 200333 OX 

m ifer Btedk tt Tp t w te t 


I 323 115JJ 
l L17 1004 
I 795 91V 
I &2B 1D» 

' 1004 

i m io3v 

r aw i2ov 

l 891 1074 
i 999 82B 

r U 2 93V 
I 958 108V 
I 862 SQM 
ran r to Mwne w» i 


1284 113ft 

1214 1074 

imp 90 
121§ 10SV 


Uaaite2009 8L98 

IWtol 1/fecghO .. 790 

CBartetotall# 851 

Thai 9pc 201 2» 869 

tttoiSVpB 2008-1233- 762 

DatoteZOIBW OX 

TVpe 2712^1 9.19 

iMHBVoe 201733 934 

&rai^el8-T7 962 


MB Wfi +1ft 
862 82VM +1ft 
MS 105fi +18 
M4 106ft +18 
900 751, +11, 

930 9Gft +14 
3J0 S5J5 ±2J, 
939 10® +2V 
9*9 13M +1B 


1154 83 

884 784 
T26ft 1014 
127V 1014 
724 
117ft 824 

114V 914 
128V 99ft 
1SBV 1271, 




' --2 


OUlM Fixed ta ta e sl 


dd_ _ 18M_ 

BtoWcaE+nr-. Nri lar 


NricanDmliV2010__ aw 
graw 1 tVpe airs 


— M2 

tacttn19M eon 

IteW-*. 1162 

tahllUKliiKSll. 1063 

— 1SS 

^Maatgijetaid. — am 

Las* i 2Q«._ «h 

iMMtariiVpe2aar. ub 

HCLHt jglP iifl 

irMfe*aoli3Vpc2D2i. 

4VKL5K4 

HIM Stow 10 Vk 2000 1IJ0 


OwSVpeWNL— 

toratew * 

ftitafe gyp c— — ■- 

fraae.2>2to— 

n btoe. M Bt tofcM. I 


- 48ft +14 

- 4ZV +24 

- S7 +v 
3*8 +4 

-29V* -4 

- 284 *4 


59V 4*8 

61ft 39ft 
71 50V 
44V 34V 
3BV 2BV 
37V Z7ft 
n IMWKlL 


862 119* 
873 112* 
932 118V 

- 97V 

- 101V 

- 110 
969 143V 

- 129 

- 37V 

- 32V 

949 tISV 
8.15 87 

467 133 

**8 138V 

- Ml 


«* M2* 119 

m* 138V H2£ 
+V 142 I1BV 
+V 11BV 97V 

lOV 100V 

+1V 115V 109V 
+ft 168ft 143ft 
-V M9V 129 
+V 44V 33V 
+V 40V 28V 
+V 138V 114V 
-V 78 87 

-V ISM, IS 
— IV 145V 12BV 
+V 1SBV 140V 


V 







11 


v' ; 


FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


fo., 


CURRENCIES AND MONEY 


m 


*■ A, 
»*- 
J>» -t 

• 25 - 

iJPL -f-e . 


MARKETS REPORT 


^ f - 


Dollar climbs 


$tef B ng 


French franc 



■■ Wriiice 


MA* I ... 

-~ftfeu*»eub 

. •*$» ■ " 

-A toir*** 
VfiMr i 
•dS**, .. _ 

U**v- 


:•'*£*»*# .. « 

-■*»« 

■■ $*** ■ 

’ . . r 

; v* 1 .. 

- ^fdc- .. . . 
z-m «wa»t-5T«-t.' 
>*■* - . . 

■■‘HP* 


towx^N 

: *&*** *■* , 

.SwT^ " 

:ASH< Eftwv' ,wi. 

-*tm* «*-v * 

’^■■.¥1 3*,»»v ■>*.•- 

Vt«*M*abijrr 

■ ■ . * 

■niwJriri / 

OM rw 

■N»wr* :r 
rJittvM: 

#*n«n 


Tfw dollar cBmhed yesterday, 
buoyed by data showing a 
sharp drop In (he unemploy- 
ment rate in May and by com- 
ments from US Treasury Secre 
tary Lloyd Bentsen, writes 
Graham Bmtey. 

Labour department figures 
showed that the US unemploy- 
ment rate dropped to 6 per cent 
in May from 64 per cent in 
April. There was also an 
upward revision to April's non- 
farm payroll number from 
267,000 to 368,000. Analysts said 
this was further evidence that 
the US economy is growing 
strongly. 

“This spells inflation," said 
Mr Avinash Persaud of JP Mop 
gan. “The US authorities will 
have to raise interest rates 
again soon to restore the cred^ 
biliiy of monetary policy." 

“Growth is above its long- 
run trend rate and, signifi- 
cantly, unanployment is now 
below 6.3 per cent, the rate 
usually associated with full 
employment, " said Mr Paul 


Chertkow, head of global cur- 
rency research at UBS. 

“Interest rates will soon 
have to move to a more neutral 
stance of around 8 per cent but 
even that may not be enough,” 
Mr Chertkov? said. 

But the rise in the non-farm 
payrolls in May of 1SL0QO was 
below expectations, “this was 
disappointing and suggests 
that the US economy is begin- 
ning to lose momentum,” said 
Mr Brian Martin, senior econo- 

■ Posted hi Maw Vutfc 



Jbb 3 — UftM? — -far. dose- 

£apot 1-5055 1.5105 

1 Mh 1AM? 1.5098 

3i*i 1.5034 1.5003 

1JT 1A9BB U5D3T 

mist at Citibank. "This gave 
heart to the Treasury market 
and it is the rally In the bend 
market which has caused the 
dollar to dimb. w 

Analysts also pointed to 
remarks made by White House 
chief economist Laura Tyson 
' who cautioned against reading 


••• May ,1W • 

Souroe; FT Graphite ■*’ 

too much into the sharp drop 
in the rate of unemployment. 

Mr Bentsen, who was speak- 
ing after a Confederation of 
British Industry lunch in Lon- 
don, said: “I must say that the 
underlying fundamentals for 
the dollar are excellent" 

Mr Chertkow said: “This is 
further con fir mation that the 
dollar de basement fr aB ended. 
One of the key factors in the 
recent dollar decline was the 
briig f in the markets that Bent- 
sen and bis colleagues were 
using the dollar as a weapon 
against Japan.” 


POUND SPOT 


SWARD AGAiMSi THE POUND 


The dollar firmed in early 
trading ahead of the labour 
market data on short-covering 
and because the US currency 
acted as a safe haven because 
of concerns over North Korea. 
“The dollar has tested critical 
levels today but the key levels 
remain further away,” said Mr 
Chertkow. “Further large gains 
are unlikely until the US 
authorities act decisively on 
interest rates.” 

The dollar closed yesterday 
at DM1.6665, up ltt pfennigs 
from DM1.6515 on Thursday 
and higher at Y105J245 against 


DOLLAR SPOT PC 


Yiom 

■ The pound gained ground, 
largely on the back of the 
strength of the dollar. But ana- 
lysts said that the Halifax 
house price index, published 
yesterday, which showed a 
large fall in house prices in 
May, also helped sterling. 

However, further gains 
would be difficult ahead of 
next week’s European elec- 
tions. The pound finished the 
day at DM2J5074, up almost one 
pfennig against the D-Mark. 

In the UK money markets, 


the Bank of England provided 
late assistance of £455m. The 
central bank had earlier pro- 
vided £2Sm of liquidity after 
forecasting a shortage of 
£75Qm, revised upwards from 
£600m. Overnight money 
traded between 4% per cent 
and 7% per cent 


mas s 

Hngsy 155556 - 156.189 10UB0 - 101790 

kan 294440 - 265149 174840 - 175040 

U 14472 - 04482 02973 - 12979 

PIM 339107 - 340134 225500 - 226004 

ftattta 28am - 2900.14 192000 - 192740 

UJUL 54189 - 54902 34719 - 10739 


Jun 3 


Ctookig Change 
irid-point on day 


BUAJthr 


Dey"» Md 
Mgh low 


One month Three months Ong year Bank of 
Rale %PA Rate %PA Rale WA Eng. Index 


Aunrta 

(Scry 

17J971 

+0.1176 

888 - 065 

17.8278 17.4346 

17.5333 

4X3 

173877 

02 

. 

- 

11^2 

Belgium 

(Bft) 

612610 

+4X1661 

284-874 

B 1.6530 512610 

61.5760 

-4X3 

51^868 

-4X2 

61 .4268 

4X3 

111X2 

Oenmok 

(DKd 

03217 

+04)1 53 

149-284 

02425 9.7025 

0^293 

-1J) 

98423 

-OA 

08433 

-4X2 

116.4 

n- Hntond 

|FM) 

82887 

+4X0227 

790-984 

82090 82480 

- 

• 

re 

m 

- 

- 

90.7 

• France 

(FFd 

8.5533 

+4X0245 

476 - 580 

8.5607 82149 

as578 

-OJ 

&561S 

-4X4 

05286 

4X3 

10&3 

’■ ■> Oermany 

PM) 

22074 

44X0097 

060-068 

2.5080 2.4832 

2-5070 

-4X2 

2.5078 

-0.1 

24886 

4X6 

123.6 

-. Greece 

Pd 

375.172; 

+2.138 

385-348 

376.135 373.052 

te 

re 

- 

- 

- 

- 

e- 

Ireland 

W 

1.0230 

-4X0006 

229 - 240 

12287 12218 

1.0244 

-416 

1.0256 

-4X7 

1.0274 

-4X3 

1048 

iwy 

ID 

2436.18 

. 42028 

425 - 610 

2444X67 241028 

2441.78 

-20 

2451J23 

-25 

248008 

-1.8 

ns 

Luxembourg 

(LFD 

912619 

40.1681 

284 - 374 

51.6630 512810 

51^789 

-4X3 

61-5869 

-02 

51.4260 

4X3 

11&2 

• , Nathortando 

W 

22089 

44X0088 

□68 - 098 

2.8115 27958 

2.803 

0.1 

2JB008 

-4X1 

27864 

4X3 

1120 

Norway 

V«7) 

102386 

44X0325 

542 - 829 

14X8878 14X7986 

14X8529 

26 

14X88S5 

-4X3 

14X8568 

0.0 

88.7 

Portugal 

|Ea> 

2S9220 

44X185 

G2S - 215 

284X300 258.324 

264X885 

-45 

26284 

-4J» 

re 

re 

- 

Spain 

PS) 

206.356 

+0.178 

151 - 561 

206.665 306.015 

208661 

-2.9 

207.741 

-27 

210246 

-1 JO 

85.0 

Sweden 


112S53 

-0.0214 

465 - 641 

11-8140 112465 

11.6783 

-23 

11JTI33 

-20 

120113 

-1A 

75.6 

i -. Switzerland 

(SB) 

2.1283 

+0.0057 

260 - 296 

2.1300 2.1173 

2.126B 

28 

21231 

1.0 

2.0942 

IS 

1121 

UK 

w 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

84X4 


Ecu 

SORf 


- 1.2894 

- 0534354 


+0.0034 087-000 1-3008 12046 1-801 -13 12986 06 1-2858 1X3 


B*. K--, .. 

dr* *• 


Argentina 


(Pwo) 1.5017 
• P) 292123 
ICS) 

(New Peso) 


-00078 012-021 
+35.4 043 •- 202 
2.0BQ8 -00136 799-817 
4395a -4X0334 884 - 041 


*■* ■' 
***** <ufe *mv 


Canada 
ktadoo 

USA ft 1.5046 -4X0078 042 - 050 

Padfla/MUcSa Eest/AHca 
Ausnia 
Hang Kong 


13088 1.5009 
28274)0 2870.00 
2.0B26 10789 
547100 42)855 
1.5103 TA08S 


:k(fM tv-v 

gw* "•< "» 


Irate 
Japan 
Matayrte 
NewZeatand 

HMn 

Saud Arabia 
Sngopcre 
S Africa (Com-) 
S Africa (Ro) 
South Kama 
Tehran 
Thatand 



(AS) 2.0373 -4X0138 660 - 385 ■» naan 22)354 

■PCS) 11.6276 -0058 237 • 314 1UBBB6 116236 113195 

(Ra) 47.1974 -02468 792 - 15B 473740 47.1710 

(7) 158652 -0344 272 - 4S1 159.400 158.100 

-4X0134 944 - 880 39088 3.8940 

-4X0161 293-328 2-5443 05200 


(MS) 36962 
(N2S) 2-5311 

paw) 405481 

m 

n 
n 


-4X1724 374 - 608 41.1215 402346 


5.8427 -00293 408-446 &86S6 6.6406 

25141 -00052 127-154 25181 25118 

54663 -0.0313 527 - 57S 5-4B87 54517 

7.1805 -4X0001 525 - 884 75343 7.1475 

-059 254 - 333 1217.75 121249 
(T9 407408 -01998 282-564 400000 407100 
(BQ 373611 -01818 359 - 882 385770 37.0340 


(Won) 121254 


20825 

-1J) 

2.0996 

-1.1 

21048 

-12 

1-5037 

27 

1 -54)24 

4X8 

1.487 

25 

20366 

24 

2036 

OJ 

2034 

02 

11 £195 

28 

116156 

24 

11.6426 

-21 

157662 

3-2 

157.142 

21 

162977 

3.4 

25904 

23 

2534 

-4L6 

2544)5 

-24 

- 

- 

- 

- 

- 

- 


865 


665 


1835 


JknS 


Ctosfag 

Change 

BdfeRor 

Day's mM 


mkf-polnt 

on day 

apraad 


low 

Europe 







Austria 

(Seri) 

11^955 

+2138 

830 < 880 

11.7000 11.6400 

Btegkn, 

(BFl) 

342896 

+228 

E>50 - B40 

34^850 34.0150 

Denmark 

(OKI) 

6S27B 

+20438 

250 - 305 

66334 

64890 

Finland 

(FM) 

25089 

+20434 

039 - ISO 

26145 

6.4662 

France 

FFr) 

5.6848 

+4X0455 

825 - 870 

5J885 

53435 

Germany 

W 

1.B0B5 

+0.016 

680 - 670 

184380 

1-6535 

Qiwob 

W 

249350 

+27 

900 - 800 

248900 247000 

faetand 

PS) 

1.4695 

-20069 

885 - 705 

1+4757 

1.4625 

Holy 

W 

161215 

+21.75 

830 - 000 

1824X50 180260 

Luxembourg 

{Lft) 

342696 

+228 

650 - 840 

322850 344)150 

Nethorionefo 

{FQ 

16885 

+20155 

680 - 870 

1.8673 

13539 

Norway 

(NKr) 

72189 

+20687 

158 - 179 

7-2196 

7.1575 

Portugal 

m 

172750 

+1 

600 - BOO 

172.960 1724)00 

Spain 

Pta) 

137.150 

+4X625 

050 - 250 

137.350 136/460 

Sweden 

{SKD 

72734 

+0.0266 

756 - 631 

73090 

73520 

SwHxortand 

(SFr) 

1-4145 

+2011 

140 - 150 

1.4156 

1,4033 

UK 

» 

1J046 

-0.0078 

042 - 050 

13103 

13035 

Ecu 


1.1580 

-4X009 

577 - 562 

1.1682 

1,1578 

SORT 

_ 

1A14SS3 

_ 

- 

- 

- 

Americas 

Aigeidtea 

(Peso) 

28981 

+20001 

880 - 881 

4X8861 

4X9877 

Bred 

P) 

194133 

+8242 

152- 154 

184135 194130 

Canada 

PS) 

1.3830 

-0.0018 

8Z7-932 

T3881 

13620 

Mexico (New Peso) 

32200 

-4X005 

150 - 250 

33275 

33150 

USA 

!D 

- 

. 

. 

- 

- 

PacfflcAflddk} EestMMca 





Auatrafa 

(AS) 

12540 

-0-0021 

535 - 545 

13505 

13531 

Hong Kong 

IdKSJ 

7.7200 

+20015 

275 - 285 

7.7267 

7.7268 

India 

(Rs) 

312888 

-20012 

650 - 725 

313725 31.3650 

Japan 

IV) 

105245 

+2315 

220-270 

105.44)0 104310 

Matayate 

(MS) 

25885 

+4X0045 

690 - BOO 

23810 

2-5855 

NewZentand 

(MZ5) 

1.5322 

-4X002 

815-828 

13861 

1.6809 

PNDppkna 

(Pesoj 

28-9500 

+4X025 

500 - 500 

27.1500 28.7500 

Soudl Arabia 

(SR) 

27503 

- 

500 - 505 

3.7508 

8. 7500 

Sbnapora 

(ssa 

12380 

+20045 

375 - 386 

13394 

13339 

S Africa (Com) (FB 

32258 

-0002 

250 - 285 

83895 

3.6155 

S Africa (Brx) 

(R) 

47650 

-2035 

550 - 750 

4.7800 

4.7550 

South Korea 

(Won) 

502150 

-22 

100 - 200 

806300 806.100 

Taiwan 

ns> 

272775 

+20075 

750- 800 

27.1020 274)730 

ThoSand 

Pfl 

222300 

+201 

200 - 400 

253400 253200 


One month Three months One year J.P Morgan 
Rate KPA Rale WPA Rate %PA Index 


11.703 

-4X8 

11.7065 

-0.4 

113313 

05 

1003 

343995 

-1.1 

343445 

-4X9 

3434B5 

-4X1 

104.7 

63368 

-1.7 

63508 

-1.4 

65878 

-4X8 

1045 

5.5128 

-4X8 

5.5214 

-4X9 

55374 

-05 

75.7 

5381 

-1.3 

63988 

-1.1 

5373 

4X2 

1043 

13677 

-4X9 

13688 

-03 

1381 

03 

1053 

250.7 

-65 

251.66 

-33 

25335 

-13 

69.4 

1.4879 

13 

IMS 

13 

1.4584 

03 

- 

16233 

-63 

1631.65 

-3.1 

185756 

-2-4 

783 

'3442995 

-1.1 

343445 

-4X9 

343096 

-0.1 

104.7 

13878 

-4X9 

13881 

-4X6 

1.8618 

03 

104+4 

7-2224 

-4X9 

7-2294 

-0.7 

7.1069 

03 

953 

174.155 

-03 

178.15 

-73 

181.1 

-43 

823 

137385 

-33 

138365 

-3.3 

144X275 

-23 

803 

7.8894 

-33 

73294 

-23 

00144 

-1.7 

803 

1.4146 

-0.1 

U 4132 

4X4 

13074 

13 

1043 

13097 

0.7 

13024 

03 

1/497 

05 

883 

1.1556 

2-2 

1.1538 

13 

1.1631 

-4X4 

- 

1385 

-1.7 

13887 

-1.6 

1.406 

-1.7 

833 

3321 

-4X4 

33228 

-03 

39302 

-03 

- 

- 

- 

* 

- 

- 

- 

100.4 

13543 

-4X3 

1.3544 

-0.1 

15581 

-03 

893 

7.7275 

4X1 

7.73 

-0.1 

7.7442 

-4X2 

- 

31/4488 

-3.1 

315938 

-23 

- 

- 

- 

10535 

2-2 

1043 

25 

10232 

01 

1443 

2582 

35 

237B5 

1.7 

250B5 

-4X8 

- 

1384 

-15 

1.6888 

-15 

1.7100 

-1.7 

- 

3.7508 

-as 

3.7529 

-03 

07656 

-03 

_ 

15373 

OS 

1337 

03 

1330 

-4X1 

- 

33413 

-5.1 

33686 

-45 

07483 

-33 

- 

4.7987 

-as 

4.8575 

-73 

- 

- 

- 

809.15 

-45 

812.85 

-33 

831.15 

-3-1 

- 

273975 

-03 

27.1375 

-03 

- 

- 

- 

253025 

-3.4 

25.43 

-3.2 

2531 

-2.7 

- 


1609 itta lor Jan 2. Bklfalfar spreads h the Fount Spot HU* Kan oriy 6» tat fares dackna phem. foretni «■» am not AvcBy quoMl » the nertra 
hi « knptMi by cwwIMmm raaa Smew btdw otautaa tty Om BmkefEivlVKL Brae awrage TIMS - KXLSHL OBa end IAMm In tt*i tfrU and 
On CWte Spot WHw ctartma from IRC WUREUTERS CU36WQ SPOT RATES. Soon mOum mm ibukM by the F.T. 


CROSS RATES AND DERIVATIVES 


WDR We far Jin 2, BoMtor apMdt in ew Draw Spot trato ahow erty Die ui Hum (todroal ptacca. Fonnrd Tatm net mealy qtand to W* mantel 

but in buifc lfl by curoent interest mas. UK. Maid & ECU an (pnled in US cmenoy: J.P. Morgen nonUnai kdew Jun 2. Base Mnga 1890=100 


EXCHANGE CROSS RATES 

Jon 3 BFr DKr FFr 


DM 


n 


MKr 


Pta 


8Kr 


3Fr 


c* 


ECU 


(BFr) 100 
(DKj) 52.49 
PR] 6028 
(PM) 2057 
PQ 5055 
(g 2.117 
pi) 1858 
PXKr] 47.48 
m 1954 
(R4 2458 
(8Kd 43.47 
(SR) 2433 
B 51.56 
(CSJ 24.78 
» 3438 
(V) 3255 
33.09 


1005 1659 4582 

10 8.708 2552 

11.48 10 

3.916 3412 

9592 8553 2.448 

0403 0551 0103 

3498 3546 0893 

8444 7578 2508 

3.770 3291 

4.W0 4.144 

8282 7212 

4.616 4510 1.178 

9522 8553 2507 

4.720 4.110 1206 

6526 5.683 1568 

8251 . 5450 1553 

7561 8584 1530 

Franc. MDwiey lsn Kroner, snd 


2.931 

1 


0985 

1215 

2.114 


1.988 

1.043 

1.107 

0408 

1 

0.042 

0265 

0543 

0594 

0406 

0363 

0481 

1524 

0492 

0680 

0465 

0788 

1—rtili 


4725 
2480 
2648 
971.7 
2379 
100 . 
B675 
2243 
937.3 
1160 
2054 
1145 
2436 
1171 
1619 
15379 
1875 
Kninor per 


5448 

2^8 

3283 

1.120 

2-742 

0.115 

1 

2598 
1.060 
1580 
2580 
1520 
2.800 
1549 
1568 
17.73 
2.182 
10; Bsighn 


2156 

1156 

12.70 

4532 

1051 

0446 

3568 

10 

4.179 

5262 

9.157 

5.103 

1058 

5219 

7216 

8856 

8560 


504.1 4005 2350 4.127 1539 4.038 2919 3 072 2.519 


2843 

214X1 

12.07 

2.167 

1318 

2119 

1532 

1B13 

1323 

Ireland 

0806828 

0790081 

-0000694 

-230 

023 

300.9 

2415 

1837 

2+488 

1.189 

2433 

1.780 

1853 

1-519 

WsBietlende 

219672 

216387 

-0004)56 

-150 

557 

1007 

6233 

4J31 

0849 

0399 

0830 

0500 

83.18 

0518 

Belgium 

402123 

307370 

-0.0026 

-1.18 

634 

2533 

2013 

1158 

2078 

0077 

2032 

1.470 

154-7 

1.269 

Germany 

134964 

133032 

-4X00005 

-099 

433 

1067 

0473 

0.487 

0087 

0041 

0.085 

0362 

054)2 

0053 

France 

053863 

659368 

-4X00529 

0B4 

.233 

9258 

7350 

4324 

0756 

03S6 

0741 

0536 

5041 

0463 

Darenre* 

T.43B79 

757773 

-03047 

130 

138 

2393 

194X1 

1032 

1359 

0921 

1316 

1586 

1453 

1.196 

Spain 

1545S0 

150134 

-0.153 

017 

061 

100. 

79.42 

4563 

0819 

0385 

0801 

0579 

6035 

0500 

Portugal 

192854 

200170 

-0/447 

079 

000 

1253 

IDOL 

0748 

1331 

0484 

1308 

0.729 

7074 

0329 







219.1 

1743 

10 

1.794 

0843 

1.755 

1369 

1333 

1395 

NON S*M MEMBERS 





122.1 

9633 

5573 

1 

0470 

0978 

0707 

74-44 

0610 

Gam 

264313 

288.332 

-0304 

003 

-430 

2693 

2004 

1138 

2128 

1 

2081 

1505 

1504 

1399 


179019 

187015 

+032 

4.79 

-4X95 

1243 

8018 

5.899 

1.023 

0481 

1 

0723 

7012 

0824 

UK 

0.788749 

0.771858 

-0300786 

-159 

534) 


172.7 

1641 

mi 


137.1 

1303 

1585 


Fttre. Eecuoo. Lira and Pesora 


7580 
7457 
9.130 
par im. 


1414 

13.43 

1536 


0584 

6513 

a770 


1583 

13.14 

1.602 


1 

9501 

1.159 


1052 

1000. 

1215 


0583 

8201 

1 


■ D-MARK nmiM OMKO DM 12S.000 par DM 


■ JMMWM YBN PUTtnara (WM) Van 125 per Yen 100 


m euw 
if* ' 

- •’ • I, a .a • 



Open 

Lamat 

Chongs 

High 

Low 

Eat vd 

Open W- 


Open 

Laaast 

Change 

High 

Low 

Esl VO 1 

Open K- 

JUI 

06047 

08097 

-00018 

06075 

06001 

54,935 

114.477 

Jiei 

09535 

09528 

00011 

09546 

4X9487 

24,675 

57,123 

Sep 

0.6034) 

03020 

00016 

afloat) 

4X5992 

18,648 

22,704 

Sop 

03580 

03593 

■00008 

09593 

09545 

8516 

18389 

Dec 


08043 

00082 

* 

* 

31 

350 

Dec 

05863 

0.9656 

03011 

03683 

05856 

47 

1,181 

■ SBRBSnUMCfVnMaOMMSF) 125300 par SPr 



■ snmjMonmsBn6MM)£B2M0per£ 




Jun 

07124 

07099 

00025 

07125 

07082 

17.213 

39577 

Jun 

15106 

15074 

00028 

15106 

15032 

15J72 

41346 

Sep 

07127 

07106 

00021 ■ 

07127 

07087 

4.458 

9.143 

Sop 

15044 

15052 

00020 

15064) 

15010 

3542 

5,412 

Dec 


07140 

00023 

• " 

“ 

65 ■ 

388 

Dec 


15030 



154)30 

47 

70 


EHS EUROPEAN CURRENCY UNIT RATES 

Jun 3 Ecu Mat Rate Change % +7- from % spreed Dfv. 

rates agalnatEcu on day can, rare w wraekeat InA 

15 

9 

-7 
-13 
-22 
-25 


Ecu central neon astUy Bie Eunpasn C u t u ni eilu iL CunoncJei an In dnemano letattue euen^A. 
Pareanna crengamior Eras aposttrs change dsnotes a me cuoanpy. Dfrarpanca mow* dw 
nMobetn— n mu spraerfa: Mia p s nranuiu e tW hia u B bararaan the aefrel wit and EeueeneairaM 
lor a cmrency. and 9w nmanxxn perrstted pflna nt ape d ev i rai on of fte ctreney*B nratet rate trotn Us 
Ecu oanM rata. 

n7AMS) SMSng md team Ura suopended from HW. Arausanora odoUaM by tfie HnancM Umax. 
■ PMLADaLPHUl SECT* OP710NBC31 2M (cents per pourx* 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 


am aat eu ho 
CAF Many Bhaapanant Co m 

raiwauvAMlmhUgellSSJO 07JJ 1 
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DandhOnrEI nDon I *7B - *»\ 

DnxnaiDMrEZemoal US -f <BSl 

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Cnd. BtL of Fh. of Chen* of Enjitand* 
3Kn3M.ureHiS?*5Wl 071-SBJU18 

Denos* lug -I «30<3-MB 


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Bank Accounts 


Coetts&Co 

mum imtusniiii 


tSUHogUMIMKiOi 


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iJJWSJTCM 

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ruuWH 479 158 I 4.75 



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maoo-oajaos — are am aao nr 

naojmo-ciaum— i aso aes I asl or 

The Ca-cparetm Bank 
PO Bn 3ln. aafeMflUM. Isn 


ULC Treat limBBd 
1 Gnat Qanberml 14. Lonriai W1H 7M. 
naooo-eoitayitfln- are ant 

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£21000-1 Tew I 7-25 144 1 

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001-4473430 


-lire iso I 434 1 Or 

J. Henry Schrader Wegg* Co Ltd 
9 DmpddB. London B»BD5 071-3026000 

_ acUto.- __l 425 

ruxoaondabne 1 450 

Mfestore That rfigti Interest Cbatpo to 
7M Umniem. nynoirtim 1£E 07S22M141 

mm* 4. 75 ISO I AMl Ot 

t&oao-ci4ja» 460 ua asa or 

EipOO-«»^00 — 439 1191 M2 1 « 


HI I 4301 
S90A0O-CM0MB I mo 125 3J» 

Eiojno-MBBao— [are aflal 177 1 

KOiWaW — - I 231 1J3 I 2JBI 

so-fc im, mfce mat* ra qbi -822 uz* 


rants- one coaarara ram ra Mere u «***. rat 
bus Kant of ora radudha a 1 bade rre ktta tax 
■tab Me ra trana pmoi raar raaraq ibmMciS)i ra 
HdcnralMoealK. Bara Cara anaa roe anuNwiia 
are ramrat ra oree— era ra ra w rad raw are 
re. OreraaM mm ara rara Raqurara 
neren ta creead n Die eccoet. 


WORLD INTEREST RATES 


MONEYRATES 

Junes Over One Three 

night morth ndtoi 


■ TWM WPinW BIBOIMHK PUTUIBB6 (UFFE)* DM1 m poWaof 10056 


Strike 

Price 

Jun 

- CALLS - 
Jul 

Aug 

Jun 

— pure — 
Jul 

Aug 

1-425 

7-91 

731 

755 

- 

- 

010 

1-450 

5l4B 

5/48 

557 

- 

006 

035 

1375 

237 

339 

3.72 

- 

038 

087 

1504) 

OBI 

134 

251 

025 

1.18 

1.79 

1525 

- 

033 

1.16 

132 


3.17 

1550 

- 

0.17 

053 

453 

4.62 

5.02 


SU One Lomb. 


Oh. 

rate 


Repo 

raze 



• SI 

5fl 

5U 
54 
5.18 
550 
5* 
64 
TW» 
7% 
A« 
5.15 
4 V. 
<Vl 
4« 
414 

2 i 

2 


.64 

54 

64 

5* 

S.1S 

A15 

54 

54 

»a 

7H 

5.13 

5.13 

44 

*4 

44 

44 


54 

5K 

54 

5* 

5.05 

5J& 

54 

54 

-.76 

ril 
A 13 
6.18 
44 
4» 
44 
44 


54 

54 

SH 
. 5W 
AID 
5.06 
5% 
5* 
TVk 
7* 
5.18 
A1B 
414 
4K 
44 
4W 


57k 

5% 

6fl 

5H 

5.13 

5.13 

84 

8* 

8* 

8 

526 
622 
44 
44 
5tt 
■ 54 
ZK 


7M 

7.40 

5.30 
SAD 
SCO 
8. DO 


a 625 
8025 


450 

450 


420 

460 


720 

7.00 

526 

525 

320 

320 

320 

320 

1.75 


A75 

A7S 

520 

520 

825 

625 

720 

725 



Open 

Sett price 

Change 

High 

Uw 

Esl ml 

Open W. 


94.87 

9458 

001 

9458 

9454 

15031 

142449 

Sep 

9435 

9438 

+4X03 

9437 

94.09 

24970 

181712 

Dec 

9451 

9451 

+4X03 

9433 

94.70 

53899 

228845 

Mar 

9453 

9451 

+4X08 

94.82 

94.47 

29493 

209312 

■ 1WSE 

MOWIH IMIMJIIA ■CTJRjm FUTOWKS (LffFQ LlOOOm poirte d 100)4 


Open 

Sett price 

Orange 

High 

LOW 

Era. vot 

Open InL 

Jun 

92.17 

9221 

+4X08 

!»» 

82.13 

7011 

hfvrrr 

Sep 

92.08 

8258 

+054 

92.10 

9134 

11282 

44093 

Dec 

91.78 

9151 

+006 

9153 

9159 

6786 

49554 

Mar 

9157 

9150 

+058 

9151 

B159 

1610 

12994 


■ THREW —OWfH BUBO flHM PBAWC WfTUWB> JJffP SPrtra pdntB of 100H 


“ 


Open 

SeB price 

Change 

High 

Low 

EsL ml 

Open ire. 


Jun 

9553 

9550 

+0.08 

9550 

a«;sa 

1647 

18228 


Sep 

9552 

9555 

008 

9556 

95.46 

5393 

26204 


Dec 

9538 

9537 

+4X06 

95.40 

9538 

112 S 

7688 

_ 

Mer 

9021 

9531 

+0.08 

9521 

95.M 

1044 

5364 


2tt 

2V4 

24 


- 1.78 

- 

■ THRU 

MONTH BCU FUTURES (LffFE) EcUlm points 0 1 100% 


















Open 

Salt price 

Change 

tfgh 

Low Era. ml 

Open ht 

Jun 

9472 

94.72 

+002 

94/75 

94.71 

5781 

62125 

4* 

4H 

4fl 

54 

- 

- 

Jun 

93 99 

94.00 

+003 

8430 

9335 

1102 

9171 

Sep 

94.33 

94-44 

+016 

94.47 

9430 

24589 

99531 

** 

444 

. 6 

S« 

- 

- 

Sep 

94.11 

94.12 

+0.03 

94.13 

84.06 

978 

12205 

Dec 

9334 

9333 

+032 

9430 

83-64 

64115 

146827 

4.16 

4.40 

4.78 

6.33 

_ - 

- 

Dec 

9336 

9430 

+004 

8330 

9334 

374 

7699 

Mar 

9330 

9338 

+035 

9333 

9298 

1101B 

54638 

4.16 

4.42 

4.79 

535 

- 

- 

Mar 

93-74 

93-79 

+007 

93.78 

9337 

153 


Dated an apt. « Open mm* figs. 

■ra tar pnwtous day. 




3W 

34 

ara 

4 

- - 

- 

■ UFFE fetuna traded an APT 














3h 

3fl 

3*4 

4 

- *■ 

■ 









■ SHORT STERLDM OPTIONS M=I=S £500.000 paints ot 10096 



■T SUBOR FT London 


«0O 

us OoBer CDe .. 

week 000 
3DH XMcedTh 
week' ego ; 

ecu LMad Da aMd Maw 1 Mil: 04 3 nshm 5H 6 natreS Hc 1 yra r 
raw era rflarad retro for SlOra qorred a dra rredrar by Mr ndrence 
daj. The rente era Bradrara Tkret. Bank of Tteqra. BxMnM IHa“ 
Mtf wtaerae draun far me ObroreSo Morey Rram. U8 * CJfa and 


S%. S UBOR MetranK Rang 
bata ■> Ham aaCh eraiMng 


BOB LWrad P ep ote a 


■ THRB* MONTH EURODOLLAR fMA Sim polnte flf 100% 


.. . 9 ■* 

-i. - 


EURO CURRENCY INTEREST RATES 

Jun S Short 7 tteyt One Three Six One 

. . twm notlca month months months yoar 



Open 

Latest 

Change 

High 

Low 

Esl vot 

Open tre. 

Jill 

9532 

9531 

001 

9538 

9530 

46339 

336.428 

Sap 

94.68 

9431 

006 

9431 

9458 

88/429 

399368 

Dec 

9499 

93.97 

011 

64.19 


173905 

400478 


ftaiglrai Franc 
Drawn Krone 
t Witofc 

DotchOsUer • 
Frwckfraoc 
fonuguaae Me. 

spawn P&Nte 


A 

6 - 

5d- 

5d 


Of’-" 1 ' * 
x :w- 
*” ' r 




&mh Frone- 
Can.Do8tr 
USDofar 
WtoU*-- 
YM 

Aotin SSbifl 

6Ma MM one m adi 4 m the US 


5H-5>a 

8 - 6 * 

%:■% _ 
S2-5A 51 

14»j - 1^2 14»2 

7i 7H 

5- 

4*-4>| 

54 -5* 

4* -41# 
Sfc-7 
2i-lB 
34-34 


■ 5* 5* - 5* 

ft 6 -5* 

a. 

.ft ft - 4 



red Ytefc MtaaR 


5*-S* 
6A-5fi 
M-5 i 
Pt-Si 
5A-SA 
1ft- ift 
74-74 
S*'5i 
4,1-4* 
64-84 
ft-ft 

74-7* 

2A-2A 

ft-ft 

Mdef 


ft-ft 

ft-ft 

54-54 

ft-54 
54- ft 
13-12 
7H-74 
ft-ft 
4,4 -A4 
rt-ft 
5-44 

7H-7H 

54-54 


■ 5S| - ft 
ft-ft 
54-54 
54-54 
5U-5B 
11 * - 10 * 
8 -7a 
64 - 6 

74-74 

54-54 

84-64 

sa-5ft 


■ US TRgASUHY BK1. WITIBM* ^41^ Sim por 10076 


Jun 

96.76 

35.71 

- 

95.75 

95.70 

2380 

12321 

Sep 

96.18 

9536 

006 

9534 

B534 

370 

15374 

Ok 

8439 

9451 

010 

9439 

94.49 

19S 

7.188 


Al Open bwras BpL rae far prawfaua day 

■ eUWMAHKOPIWMW&jm^OknrnpcMBariom 


. jrA: ^ 


rn TIIMUi HOMII RStOft wmtWM IMATff) Path WDenk oflorad rate 
^ ' Open Seaprtee Chdnfle 

Jut . . 9443 . M.42 +0-03 

i Sap 94.45 «-44 +025 

" OK 9428 8424 +007 

tte MM (KOI +008 

■ THIMiaOlira«lllODOUJWtLW^ 


SM» 

Price 

Jun 

CALLS — 

Jul Aug 

Sep 

Jut 

PUTS 

Jul Aug 

Sep 

% 

Adam S Company — 525 

% 

Dunn tosfe — 525 

9475 

013 

025 027 

029 

002 

004 

036 

008 

Afed Tru* Swk -52S 

EteKr BHlk Unfed _ 625 

S3O0 

001 

009 an 

014 

ais 

ai3 

0.15 

ais 

Aaea* — £25 

FtancteS Gen sank „ 0 

9525 

0 

033 004 

006 

039 

032 

033 

035 

•Henry Arebrefter 525 

•Room Ffcmhfl & Co ^ 525 

Era. tel total 

Cdk 1235 Fin SZ9. Prerteua tafm oian hl Crt* Z7DGA1 Pm 

19038 


Batik otEEroda -825 

(Srabank S25 

■ UKO SWISS FRANC ORTONS (LFFE) SFr 1m ports Qt 100% 



Banco BfcKVttca)B— 525 

•Gtarmees Mahon 525 


94.43 

Lew 

9M0 

Esl ml 
0206 

Open Ire. 
52.304 

Strike 

Price 

Jun 

- CALLS - 
Sep 

Ok 

Jun 

— PUTS - 
Sep 

Dec 

Bankoikeiond . — 
Bankafintfa 

... 525 
..525 

94,46 

94.40 

16.B71 

60321 

0550 

011 

021 

021 

001 

016 

034 

Bark re Scoter*).... 

— 535 

94.26 

94.19 

10441 

34.920 

®375 

032 

011 

012 

017 

031 

050 

Bodays Bar* 

— 525 

9436 

93JW 

10418 

33,904 

9600 

001 

035 

006 

DAI 

050 


Brit Bk of Md East.. 

- S2S 


U. tel tore, Cab 0 Put* A farina timfm open in. cate 610 Rn 37«B 


:rv- 

- . 

- Open 

Sotfptfce 

Qndge 

«gh 

Low 

era. m 

Open iRL 


" Jun . - 

9033 

8534 

+002 

9034 

8033 

as 

5784 

.A. 

Sep 

94.70 

90.70 

+005 

94.72 

94.66 

316 

1907 


Ok 

BLIT 

B4.H) 

+006 

W.13 

9097 

117 

1581 

, - “ 

«W 

8098 

9069 

+006 

9169 

9338 

3fi 

1088 


farina dmfn wt. Cate Vl» Pus 13.148 . Pirn, daya aptn hi, CMO9072S1 Rte 400,960 


UK INTEREST RATES 


LONDON MONEYRATES 

Jian 3 Over- 

night 


7 days 
notice 


One 

month 


Three 


SU 


One 

year 


Interbank Sterling 

7l2-ft 

5 - ft 

SA-4S 

5A -5i 

ft * ft 

ft-e 

Sterling CDs 

- 

- 

5 * 4}J 

SA-5* 

54 ' ft 

6-5S 

Treaswy B*s 

- 

- 

«-4S 

ft-4H 

- 

- 

Bank Bis 

- 

- 

4K-# 

5-« 

ft-ft 

- 

Local auBwfky dapa 

4H-4H 

4i3-4« 

BA - 4H 

5A-SA 

ft-ft 

5H-6tt 

ftsccurs Market depe 

ft -ft 

43-4JZ 

* 

- 

- 

- 

UK cknring bank base fencing rata 5* par cent from February 0 1994 

Up to 1 1-3 3-6 69 

month month montt* months 

9-12 

months 

Gaits o( Tax dap. £100300) 

1* 

4 

3* 

3* 

ft 


Can of T«* tfap. undw CIOCLDCO I* 1 Donate weudrown far cate Me 

tea randra raw of dtocount 4J99,pc. KX90 Brad rate Sag. Eaton Ffcrance. Mato up day May 31, 

1 M 4 . Agreed raa tor pratad Jun 3 B. 1694 la JU 35 . 1884 . ScMnm 04 « «A 7 pe. MraareA rale tor 
period fiTr 3 a 1004 n. May H. 1804 . SdaeniM 07 6 V& 22 Spn. FfiMnee Horraa Brso Rrae 5 *pc from 
Juno 1 . IBM 

■ THROE UCKKTH StlKUM F«TUH«S (UHrE) ESOO«» pofaim e! 100% 


Strike 

Price 

Jun 

— CALLS - 
Sep 

Dec 

Jun 

— PUTS 

Sep Dec 

9460 

022 

ais 

013 

0 

021 070 

9475 

0.03 

006 

008 

036 

037 090 

0600 

0 

nrw 

033 

028 

050 1.10 

ESL Wl wo. CsH GSB3 Fox 5161. fanoua te/s opn W. Cate ZM7«B Pite 160000 


BASE LENDING RATES 


•down Ghiplay&Oa Ltd 225 
CLBankNademm.- 525 

CHrarfeNA ....225 

CtydoaddeBonk .525 

The Gfroprafttf Bark. S2S 

Couas&Co- -525 

Crate LyonMi 525 

Cyprus PCpior Bank J&35 


•Hembree Bank 525 

HortstioiQen (nv Ok. 525 

•WSamueL— 525 

G. Hare A Co .526 

Hon^cong48t»ft(^oi525 
JUMUfadgaBonh— 52S 
•Leopold Jcoopn 6 Sore 555 

Lloyds Sark 525 

Magma) Bar* US-. 525 

KMandBanh — C2S 

'Mount Banking. 


Nat W MmlnMBr 525 

WteptUlaat. &25 


• flodugho Quorartoo 
CraponMon Umted la no 
longer aOhortaad as 
abaMngtedUlon. 8 
RoyoIBkafSooBond- 52S 

•fimkh 6 VMnsn Sot* . 525 

TSB 525 

•Unfed Bk Of KimhI|_ 525 
UteyTirat Bark Ft- 52b 
WeetomTitte — —52S 
WhfaaMyLflklwf..-.S2s 
Yarttshke Bank -529 

• Members of Brttlsii 
Merchant Banking & 
Securities Houses 
AfeodMon 

• Inadrtanfclnfen 


— 

hrnriTr 





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Du(f Forecasts and Market Myths for 1994 

'nc- US do;:ar wil; soar, <f9f. ! 3!;cn wii! conlircue: go:d i motl commodities 
went iis<?. Japan s economy S stock mark'd vriil be weak: You did 
NOT read trial in Fuilcr'.lAiey - (ha Iconoclastic investment letlc-r. 

Cs I Js-o ?a.qc-nr;cr 'c: c ■-crr.-:.o .sju'b Cenceos yjel C!-c^ Anc'yic LM. 

7S.v S ..jwSW lancon ',ViS7rO.C< l«i Isr-os 7;.«?iS»: 

\C7' o.*0 or Fox U ‘439 0 F:v5Sa lv—.h.?.- 


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_ _ e .i* A. J£r— 


British Funds, etc 


taiy 13%K SDi 200003 - EWZfi 122JJ 
Bttfwqwr 10%K Site 2005 - flllAtl J*04) 


Corporation and County 
Stocks 


London County 2%% Con* to 1920(or after) 
- £27 (2714/M) 

B ta nta rf ro n Dtatrict Gored li%* Rod to 
2012-015% riJo04) 

BrtMtCtty at) 11*2 Jt Rod Stk 2006 - 013% 
piMyM) 

Lafcarear C*v Cored 7* Ui to 2018fftag 
tnt OomMP/P) - 084, 02 OIMyfM) 

Saltort (City otj 7% Ln to 2010(R*g bit 
CttttWVP) - 08% 02 01M/94) 


Foreign Stocks, Bonds, etc- 
(coupons payable in London) 


Abbey National SMkig CvU RCS%* 
Sutxxd GU Bets 2W4<ft£Uan) - £93%* 
Abbey National Stoiftag Captal RjC 1Q%* 
Sutoort GW EM* 2002 (Br £ Vw) - OHL7 
(31M/94) 

Atoboy Nattreel Tiesiury Sen* PLC BH Gtd 
Bdi 2003 (Br £ Vnr) - £9145 % piMy94) 
Abbey NaUonri Trnmvy Sena PLC B%* 
QU Beta 2004 (BrLSm4<ta8 • L.100% 100% 
(Z7My»4) 

Acer ta ura porat wl 4* Bd> 2001(8*10000) - 
S1B8 180*2 190 
ABad-Lyrea PUS 10%W 8d* 
I999fflr£500041000001 - C104, 7 , % 

A«BY* Group PUS 8%N Bets axwrtVw) - 
£93% (1J*94) 

Awta Ran Ld 10%M Onv Cop 
Bd*2005(Br C5000&10000Q) - 000% 
R7MyW| 

Banco Smnthr SA 0% Sudani Cnv Bdi 
1994 (Br PT1 000000} - PTB1S44+ 

Barclays Bank PUS 9475* Undated Suboid 
Nte-£S3%5% 

Baring* PLC 9%* Ptep Subcrt Nts (BrtVtai- 
Ous) - £82% 

Bus Orc»e Industries PLC 8^W 
SutwndOnBdi 200gft£1000t10000) - 
£135 

BkM ante taduntee CapKW Ld 10%M Cm 
Cap Bdi 20O5<BrCS000&10O000) - CIOS 

vn*m 

Bradford & Btagtoy BuMng 8acMyCo4arad 
RtgRteNta 200Q(Ftag MuHClOOO) - £87%+ 
Brito Aarorerea PLC 10%* Bda 2014 
(BiCTOOOO&IOOOOO) - £103 (1J*M) 

BraWi Akwaya PLC 10%% Bda 
KBSprrsOtmiOOOO} - C107 
Brito Gaa PLC 7%* Nta 1997 Or £ Vte) - 
£99% 

BUM Gas PLC 10%N Bda 2001{Br 
£1000.100005100000} - £108 pTMyW) 
Brito Gaa PLC 6%M Bda 2003 (Br £ Vte) - 
£93% \ 4% piMy94) 

Brito Land Co PUS 12%* Bda 2010 
(Br£1 000081 00000) ■ £110% (IJaM) 

BrUsh Toteettnm u rt ctt lo na PLC Zara Cpn 
Bda 2D00(BClO0M.100aq) - 08125 2% 
pnM4) 

entire rateeommunfcaUona PLC 7%* Bda 
2003 (Br£ Vte)- £89% (31My94) 

Bwimh Caa&d Copt^Jaraay) Ld 9%M Cm 
Cap Bda 2006 (Bag £1000) - £154% % 

Daly Mrt 5 Omni Trust PIC Bh% foch 
Bda 2005 (BrOOOOafiOOO) - £154 (1 J#M) 
Dawson Hnanca NV 9%* QfcfftedCnvPrf 
2004(CwttToEk £118) - £99 (Z7My04) 
□bans Group (Capital) PIC B%* Cnv GW 
Bds 2002 (Br£5000a5000a) - £07% 88% 
(Z7MV94 

Eaatam Bactrtcajr PLC 8%H Bda 2004(Br« 
Van) - £9228 

Bf Ejncaqartsa Fteanoa PLC 8%* Gtd Bate 
Bda 2006 (Beg £3000) - £101 
ESf BntarprtM Finance PIC B%* GW Ekcti 
BA 2006(Bi£SOOO&1 00000) - £97 
Bnarpriaod PLC 10%* Nte 1998 (ft 
£50005100000) - £104% -85 fUaM 
Bropawi Bank tor Rac red Dav 8475* Bda 
1888 (Br BXH 00005100000} - PCI 03% 
103% (27My04) 

FWanffRapuM: ert) 9%* Na 1997 (Br£ Vte) 
-£104% (97MyB4) 

Rrtar {Mtaffi Finance N.V. 6%K 
GURodCmPlf 200«(Br£1000} - £127% 
(27My94) 

ON Grant ffcrefc Ld &&K Ow Bda 28/57 
2001(&OK100) - BF100 (31My94) 

Graycow PUS 94* Bda 2003 
OBrei 00005100000) - £88% %(31My9% 
QidnnaM PUS 7%W Nta 1997 (Br C VH) - 
£97% 

HSBC HoUteg* PLC 9%K Sunord Bda 2018 
(Br £ VaO - £37% (1Je9<) 

HaStax BuScang SocMy 7%N Nta 1998 (Br £ 
Vte) - £9812% p1Mytt4) 

Hteha Bidding Sodaty 11* Subord Bda 

aoi40»noooo5iooaoq - £ioe% 

HaUax Bidding Soctety Coomd Big Rta Nte 
2003 (BrC Vte) - CB7% 


Hinaan PLC 9%K Cnv SUDcad 2008 (Ek 
£Var)-Clia% 

Hanaon PLC 10%K Bda 1997 (Br £ Vte) - 
£106% (31MyB4) 

Hmon nun PUS 10* Bda 2008 prESOQQ 
- £ 80 % 100 % 

Mckaun CapM Ld 7* cm Cap Bda 200« 
(Rag) - l32(27My94) 

Impanal Chanteal InduaMn PLC 9%K Bda 
2005(ft£1 00051 OOOC| ■ £101% 
ktoxnaSonoJ Bank ter Hoc 5 Dev 9%H Bda 
2007 (M5000 - £103% C7MyS4) 
IBMItepiMe cl) io%« Bda 2014 
(EK100005SOOOQ - £108% (27Uy94) 
Japan OaeatapmaM Bank 7% GKdBd* 2000 
(Br £ Vai) - £93% p7My94) 

Kanaal Dearie Pcmar Co Inc 7%* Nta 1998 
(ft£VSr)-£95% 

Kyuehu Docmc Pcmar Oo Inc B* Mb 1997 
(Br CVo) - C98J5 

Ladbrefca Group HnancopenaylLd 9* Cm 
Cap Bda 2005 (BtCS00051 00000) - £97%+ 
Land Tetudee PUS 9%* Bda 
2007»C10n)510000) - £100)] (Z7My94) 
Land SecudOee PUS 9%% Cm Bda 2004 
(BrC5000550000) -£109% % 

Laarno PLC 7%« Cm Bda 
200SOC1000510000) - £88% P1My94) 
Lmda Pwiia m ia BuSdeig SocMy 7%* Nte 
1B97(BrtVte) - £97 (1JaB4) 

Leeds Pennanom ButUng SocMy 7%% Nte 
1998 (Br £ VM) - £88% (31My94) 

Lama (term) PLC 1D%* Bda £014 
(BrEIOOOO&IOOOQG) - Cl 05% 

Lioyda Bank PUS 7%* Subord Bda 

20041BiCv.rtou^ - £B4}| 6,', 

Lloyds Bank PLC 9%* Subord Bda 2023 (Br 
E VSt) - £98% 7 (lJe94) 

Uarite 5 Spencer Ftem PLC 7%H Gtd Nte 
1998 (Br £ Vat) - SS7% QiMyB% 
MWUaMBy Ftwnoa Ld 9%* Gtd Nte 1997 
(Br evad - £102%+ 

Naaorte Watetenaw Bank PLC ii%H und- 
SubNte ClOOOfCm n PrORefl - WW 
Nrtonal WteteSnaar Bank RC 11%* llnd- 
GUbNra ClOOOfCm to PilJBr • CIOS 
PIMyW) 

Nskonwkte BuUno SocMy 9%H Subord 
Nte 2018 (Br £ V«) - EBB% (31My94) 
Ns a o rra fcf a Bdoteg SocMy \3£% 8Uxxd 
Nte 2000 (Br tlOOOQ) ■ £117% piMy94) 


Mpoon T teegrapti and TaMtana CorpiO%* 
Bds 2001 (Br £1000510000) - £107% 
NMhumteten waur Group PLC 9%H Bds 
200? 03r £ Wo) - £97% 

Oaalra Gaa Oo Ld B.125H Bda 2003 (Br £ 

Vte) - £91 (UaB4) 

P»c*e BaOric WnBCatte Co Ld 3%* Beta 
2001 (Br81 0000) - £123%+ 

PmonPLC 10%« Bda 
2008BM1 000510000) - 004% % % 
PiMy9% 

PwwOhi PLC 8%H Bda 2003 (Br 
Cl 00005100000) - £98% % % B (27My9% 
Robtet Ranteig M Rnanes Ld 9%H Parp 
SUboid Gkl Nte (RtCVh] - C 81%+ 

Bote n oyce PLC 11%* Mi 1998 (Br 
£1000510000) - £108% (1JM4) 

BoUtediiOs Cmtnuean FlifCflLdS* Parp 
Subert GU Nte (BriVnrtoue) - £70% 
OteOfl 

Stenteuyi tUOuamai MandteUl 
8%*CmCapBdi SOOS^r £60005100000) - 
£124 (27My94) 

Sawn Tluni PLC T1%* Bda 1999 (Br 
£50008100000) - ei08% 


Snows Nmrigatton Corpondian 3.75% Bds 
2003 Sr 8100005100000) - $103 (Ua94) 
8nfBiMkw fl aao f ii CapBst plc 7 %k Gtd 

Nte 1908 pr E Vte) - E97& (IJaM 
TS8 amp PUS 12* Subord Bds 2011 (Br 
E10000S10000Q) - EH5C12S (UaB4) 
Ttemeo R n anoe (Joney) Ld 9%M Cm Cap 
Bda 2008 Pag £1000) - £1012 % M % 
9% 

Tsmac Fhanca (Jssoy) Ld 8%* Cm Cap 
Bda 2008(Br £8000550009 - £102% 

Teaoo PUS 10%* Bdi 2002 (Br EVte] - 

£102% 

Tosco Capftte Ld 9* Cnv Cap Bda 20059*0 
£1)- £115% 6.19% % % 

Tosco CapttU Ld 9* Clrv Cap Bds 
2008C3i£B00051000a) - £1 13% (Z7My94) 
ThteiMa Water PLC 9%K CmSubonBda 
soooorfsoooaeoooo) - eub ' 

Tokyo Deckle Power Co tec 7%* Nte 1898 
(Br £ Var) - £95% (31UyB4) 

Tung Ho Steel Ln terpriee Corp 4* Bds 
2001^*10000) -8114% (1Ja94) 

U-Mng Marino Transport Corponaianl%K 
Bite 2001 (Heg h Muk Si 000) ■ S96% 

en*m 

UnSeuar PLC 7%* Nte 1998 P3r £ Vte) - 
£98% {27MS4I4) 


United Kingdom 7%* Bds 2002(EbSVH} - 
898% 98% piMy04) 

Vlcsarten FUc Adas Fh Agency 9%H GU 
Bda 1999(Br£Vtea) - £101-38 
WartU9(3jC3J Croup PUS BH Pup Ekteord 
Nta (RapNteBrQ - £81%+ %+ 

WaMi Water LHtteo Rnonce PIC 7%* Old 
Bda 2DJ4(Br£Var)(P/P) - E7% f1Js04) 
wookMcb BuMteg soctety 7* Hte 1998 fr 
£ Vte) -£99.1 

WocMdi Buhflng Society 11%* SOrnd 
NtS 2001 - £108% CIJe84) 


WooteridiBiritSng SocMy 10%N Biteard 
Nte 2017 (Br£ Vte)- £97%+ 

Yuan Feeing Yu Paper Mfg Co Ld 2* Oopo- 
roto Bds 1B89(Bi81tKffiB) - S121 (Z7My04) 
Enpori Daiwite pt ineni Corp 8C 200m S* Debt 
tesbunant 22/12A7 - SC82 93 C1MyS4 
Hteten BuSdteg SocMy CiGOn 7%* Nte 14/ 
4/2000- £98& (27My94) 

9wadmOOngdam at) 0M2Q2 6.10* Vte Rad 
Arnount tealr BOAS - DM7B% (3lMy94) 
SaradanOOngdom ef) EBOOm 7%* Nte 3/12/ 
97- CB9 % % (Z7My94) 
D—tfteiWhBJowoq £360m 7%* Sda2Bff/ 
2000 -£96% (27My94) 


Storting Issues by Overseas 
Borrowers 


Austrtetaj Co mmonw nfl flfa of) B%* Ln S0< 
2013Fteg9 - £07 

Bank or Ooaco 10%K Ln 8M 2O1O0M - 
£94 % (LMH) 

Bark of Cbmm 10%* Ln Blk 2010 (Bi) - 
£ 94% 

Ewopatei tewotermnt Bark 9* Ln Stk 2001 


(Red-£f01%%p7My94) 

European tevasinwnt Bek 8%* Ln Blk 
2009 - £103% % JB8 

EtBopaan k iwkn an t Bank 10%N Ln 81k 
200*(Ra8)-£i07%+ 

Baopatei Imastmant Bank 11* Ln S8e 
20Q2(Rag) - £ 100 + 

Hydro-Quabec IBM Ln S8C2011 -£141 
(3lMy94| 

kaMidpeput*! oQ 14%* Ln Stt 2018 - 
£138% (IJaM) 

tetamadanef Bank lor Roc 5 Daw 11JSM Ln 
Blk 2003 - £114% (1-MM) 

Naur Zealand 11%* Stk 20080*14- £118 
7% (27My84) 

New ZaaM 11%* Sdc 2008(Br £9000) - 
£114% piMyB% 

Trinidad 5Tobogo(FlepuWlc oQ 12%* In BUr 
200B(Rag) - £107 (31My94) 


Listed Com panies(excJud i ng 
Investment Trusts) 


ASH CopTM Rname(Jmay)Ld 9%H Cm 
C9p Bdi 2008 (Rag UNte lOOp) - £85 

AtwtteanThjai PLCVWatoaubkrOttf- 55 
<31My«4) . 

Aetna Mteqalan Growth FundfCaymteOUl 
OnJSOCI -811% 11.3 11% 11.5886 11% 
(1 Jo 94) 

ABtert FMior Onup PLC ADR (KM) - *8.14+ 

Atesandor 5 AtamaM Baratoas tec Sha of 
Cteaa C Com Stk 81 - £10 (Ue94) 

Atexandars Mdg* PLC 'AWWM lOp - 
23 (Ue8fl 

Atamdara Hdgs PLC 9%* Cun Prf £1 -8? 


pIMyBU 

Almon Group PLC IL26p PM) Cnv Cum Rad 
Pit IOp-82 (lJaB% 

ABad-Ljnna R jC 5%* Cltei W £1 -81 


Atead-Lyona PLC 7%* Cian ftf £1 - 80+ 
Aflad-Lyona RJC 1 1%* Dab Stk 2009 - 
£1 ISA .4875 


AEod-Lyons PLC 5%H Una Ln Blk - £80 
{UdMi 

AkecHjwna PLC 7%H Urn Ln Stk 93(98 - 
£97%f31My84) 

Atead-Lyona RnancM Services PUSB%» 
GtEfCmSubadBcteZOOe RsgSkteKIOOO - 
£1101 

AMa PUS 8J* Cm Cum Nan4kg Rad W 
£1 - 73.48 % (1Ja9<9 

Amorican Biraida tec Bha of Com Blk 88.125 
-828% 32% 

Andrawa Syhaa Grog) PUS Cm Pri 50p - 82 
% 4% (27My64) 

fisigVim Wbtar PLC 8%H tedateUnkad LnSflt 
2000(61024*) - £132%+ 

Angio-Eakam P tente Bona PUS 12%W Una 
Ln Stk 95/99 - £100 (27My94) 

Attwooda PLC ADR pkD - 89% (IJaM] 
Athuoods fhanca) NV 8%p Old Bed Cm ftf 

Automated SocoMMdga) PLC 8* Cm Cum 
Rad Prf Cl -90% 1 (Ua94) 

AUtenodee Products PLC 4J55* Cum 2nd 
Prf Cl - 61 (1Jo94) 

BAT teduaktea PLC ADR ffrl) - $1224 
BET PLC ADR (4:1) - 87% .385 £2 
BM Grate PLC 4.6p (Nofl Cm Cum Rad ft# 
20P-S1 

BOC Groite PUS AOR (in) - $10.71 (IJoM) 
BOC Group PLC 12%H Uns Ln Blk 3012/17 
-£124% (27MyB4) 

B1P PLC 7^p(NaQ Cm Cum Rad Prf lOp - 
210 1 (1JSB4) 

BTR PUS ADR (4ri) - 833 
Bangkok towrttmonte Ld Ptg Rad ftfSOin - 
8129:88 (27liy94) 

Bank of hotendJGovemor A Co oQ Unite NCP 
Sik Bra A Cl 5 £9 Uqufdadon - £12% 
flJ*4) 

Bank ol kotandfOovamor 6 Co Ol) UnBa NCP 
Slk SraA frCIAkCO Uqtedtekm - El 13 
Banner Hama Group PLC Ond 1 0p - 13S 
Btedaya PLC ADR (*ri) - 830% (31My«4) 
Bartteya Bank PUS 12* Una Cap Ln Stt 
2O10-C115 

Barton Oraup PLC 7 SBp 0M) Cm Rad Prf 
86p - 9Z% (1J*94) 

BaTngaPLC 9* CUmtendftfCI -98 • 

B^iRC 0%M NorKlan Prf £1 - 115% 

Barr 5 Wtea c a Arnold That PLC Qrd 2Sp - 

Barrow Hepburn Group PLC 7JS% Cum ftf 
Cl - 91 |31My04) 

Baaa PLC ADR pri) - 815% (Ua9% 


FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


LONDON STOCK EXCHANGE: Dealinqs 


DstaSa of business done shown Mow have been taken wtth co na ent 
from last Thursday^ Stock Exchange Official List and shoutd not be 
reproduced without permission. 

Debate relate to those aecurhles not bxdudad In the FT Share IrtformaDon 
Services. 

Unless otherwise indicated prices are in pence. The prices are those st 
which the business was done hi the 24 hows up to 5 pm on Thrnday and 
settled through the Stock Exchange TaBsmsn system, they are not In order of 
execution but In ascendng outer which denotes the day’s Wriest and lowest 
dealings. 

For those securities In which no business was recorded in Thursday's 
Official Ust the latest leu ot dad business in the three previous days b ghren 

wtth the relevant dais. 

Rule 536(2) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Republic of Ireland Ltd. 

i Bargains at special prices. $ Bargains done the previous day. 


Brant Manrtkrai PLC 9* Cun Red ftf £1 




PLC Mato Site tor CM 


Bern PUS 10%* Dob Slk 2018 - £110% 
Baaa PLC 7%H Urn Ln 85c 92/97 - £96% 
Bata teMBteiante PLC 7%M Una Ln Blk 92/ 
97 - £98 (Z7My94) 

Bafiwoy PLC 9JM Cum Rad ftf 2014 El - 
112 

Baagaaon (Hr AS *B" Non Vtg Sha MGLS - 
NK181% 24484 

Bkmteghwn ktedahkua Bukang Boo 9%N 
Farm bn BaaOig Bha £1000 - £86 % 7 % 


BKMbua te r Baartakaiwnt Oorp Bha Com 
Stk 80.10 - S28% 

BUM CkOa teduHitea PLC AOR (in) - 844 
{U«84) 

BUM Orcte teduaktea PLC 8%M Una Ln 


S041879 or affi - £84% Ct7My»4) 

Boote Co PLC ADR fbl) - 815% (31Uy94 
BMhorpa PLC 7* Une Ln Stt: 90/95 - CDS 

_pn*tW 

Bradtad 5 Btegtoy BLBdhg SaM/11%* 
Ptem tnt Bateteg She £10000 - £110076 

Bradlonl « Singtey Bridtag BocMyiS* 
ftam tot Baortag Bhs £10000 - £122% 3% 


awtt waltair Group PU5 BJ5% 3rd NovCum 
Cm Red 2007/10 £1 - 2% (3iMyS4 
BrtKonVater PljC B%* Cun ted Plf £l - 

Bristol Water Hdga PLC CM B1 - 900 
total Wttar rtdgs PLC BJB* Cm Cm 
Rod Prf 1896 Sha £1 - 106 (Urtfl 
Brted 5 Waat BuMng Soctety 1S%* Pane 
K BflBteg to £1000 - £122 % 3% % 4% 


FT-SE ACTUARIES INDICES 


IrMAAte^s 
te JS7% 


hteCMg Soctety 13* Parrn Int 
Bha £1000 - £119 % % S0 1 S 


U» FT-SE 100, FT-SE Md 250 and FT-SE Actuaries 350 hdees and the 
FT-SE Actuaries Industry Baskets are calculated by The In t ern at ion al 
Stock Exchange of lha Untied Kingdom and RopubBe of Ireland Limited 
© The International Stock Exchange of the United Kingdom and Repubflc 
of Ireland Limited 1994. AH rights reserved. 

The FT-SE Actuaries Aft-Share Index is catenated by The Hnancfaf 
Times Umftad In conjunction with the institute of Actuaries and the 
Faculty of Actuaries. © The Financial Times Limited 1994. Al 'right* 
reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-SE Actuaries Aft-Share 
indw are members of the FT-SE Actuaries Share Indices series which 
ere calculated in accordance with a standard set of grand rules 
estabfished by Tha Financial TTme* Limited and London Stock Exchange 
In conjunction with the Institute of Actuaries and the Faculty erf . Actuaries. 

“FT-SE" and Tootsie* ate joint trade maria and service marks of the 
London Stock Bodhange and The Financial Times Limited. 


MPHnteml 

■B8% %(1JoB4 


i Oo PLC 9* Cun 2nd ftf 


(100-32024833% 
sA^LRjHdga PLC 8%K 2n<f Cum ftf 


- £82 (31MyQ4) 

Coats Vtyoea PLC 4jm Cum PH £1 -88 71 
(UaM) 

Comnwrelal Urtan PLC 8%N Cum ted Prf 
£1 - 104% % % 

Cmtuw c M Union PLC 8%* Cun tod Plf 
£1 - 104% 6 % % % 10%+ 1%t 
Co-OpMUm Bank PLC 026* Nan-Cun tad 
Prf £1-109%%% 

Goapw pwHrick) PIC 8Jp (NteO Cm Rad 
Cum Pig Prf 10p - 94 5 
CouteUck PLC 5* Cun ite ftf Cl - 60% 2 
Oowtmdda PLC S%* Una Ln Stk B4/9B - 
£94% (JTMyBQ 

CawteUda PLC 7%* Una Ln SOc SCOOIXS - 
£91 (1J*B4) 

Coventry BuMng SocMy 12%S Porm Mo- 
nt Sowing Sha £1000 • nil % 4% 

Drty Utel 5 Qanwai Thwr PLC ORl 80p - 
£14% 

Datgaly PLC 4JS* Cun ftf £1 - 74% 
ftjSfl 

Dabwihwna PLC 7%H Una Ln Slk 2002477 - 
£B2%(1JaM) 

IMU PLC 10%* (Ml 80c B5/M - £102% 3 
C1JW04® 

Owicara PLC IL2S* Cum Ow Rad Prf 21 - 
113 

Dwrfcton Biwgy PLC CM fip - 11 (27M|ye« 
Omar Cop Com Slk 81 -852% 

Dunlop ftwiteUara Ld 6* Cun Prf £1 - 81 
% 3 35 S 

S3 Qaup PUC 5* Cum ftf 80c £1 - 82 
tIJaOq 

B Ora MWigSBtploniilai Co PLC Old IQp - 
580(27Mye^ 

HyatWInnUadori) PLC OM 2flp - £4^5 
(IJa94) 

Erma PLC *25p+teQ Cm Cum Rad ftf 5p 
-70 

Bfc*aonM4Xr«lalaMiitebiiauu8Sw- 
BVteg^KIO-SKSei 1 829834 j88BB 
%%88%JB7%88 
Bid D/anoy SjCA Slw FRIO Papo i lt w y 


Racalpte) - 380 80 DOi 8 5+ 770 70 70(2 
*48802858*7*8890 
Bure OtenayiCA. Sha FRIO (Br)-E3e3 
3.72 8 57385 FR80L9 1 j 03 .1 .12 .13 .15 
.3440 .58 .78 2.16 2S A A M % JB 
Buratumel PLC/Emkmil SA Unto (1 EPLC 
Grt 40p5 1 ESA FTOO) |3i) - FR32B7 
32£5{Ma04) 

Boahaart PUC/eauunoal SA Unto 
ptaoyafcw wKl te * - £ 3269889 FR27J5 
.7.71 42 508 .1.1 .144% .35 .41 JO 
M 9 &AAO&M 6 M 
Euratamal PlC/BaukmnolBAFndr 
WteflBFLC 5 1ESA WrttoSub lortJnlte)'- 
5»+ 

Bc-LMKla PIC Wterante to tub for to - 24% 
6 (31My94) 


R*»n HokAnga PLC Oni 6p - 128 St 
Flat CMcago Corp Com Slk 85 - 853% % 
FtatfbBonte BUtog Soctety 11%* Pwm 
tot Bearing Site £10000 - £98% 9 
Hrat Nadoral Pham Crap PLC 7* Cm 
Cum Rad ftf £1 - 144 C31My94) 

Room PIC ADR (4.1) - 864 DJoSfl 
Ftoona PLC 5%M Una Ln Slk 2004AH - 
£71% (J1My9fl 

Rwa Arrows tat Raaanwa Ld Pkj Rad ftf 
SLD1(Ster9ng Sha) - £040013 (27My9fl 
Rwa OWte k w aa bn an te PLC 7* 2nd Own ftf 


£1 - 70 (31My94) 

FaBraa a«Mp PLC Old 8p - 44 
F aiik w M PLC n* Can Ptf £1 - 127 
Forte PLC 9.1* Una Ln Slk 95/2000 - £96 

FfteraSy HoWb ftjC 4%* Cm Oum Rod Prf 
£1 -71 (31My04) 

Rrtendy Hotete RJC 5* tar Cun Rad Prf £1 
- 116 [1M4 

Rtendy Hotete PIC 7* Cm Oun Rad ftf £1 
-69(31l%94 

0WI PLC ADR (in) - 88*5 (1 Ja04) 

GN Groat Nordte Ld Sha OKI 00 - 0KS14 
GJLWdgd PUC 10%* and Con Prf £1 - 91 
2%%B7»%9+ 

aT. Chfla Growth Fiaid Ld Ort 8001 - 
£29%+ 

Oonarte Aoddant PLC 7%N Cun ted Prf £1 
-97% 

Gononl Aoddant HC 8%% Cum ted ftf £1 

- 107 % % % 12%* 

Gononl Aoc RratlJo Aaac Com PLC7%* 
Una Ln Slk 92/97 - 09% % <27My94) 
General Etecaic Oo PLC ADR (W) - *438 
Gktea & Dandy PLC Ord lOp - 102 
Om Group Ld 6%M Un* Ln 8>k BSnB GOp 

- *9 piMyft4) 

Gte» Ouup Ld 7%N Un* Ln S0t65/B5 50p 
-46(31Uy&* 


Oymrad teta ma Bo nd PLC 10%M Una Ln Sdc 
94/69 - £95% 


04/90 - £95% 

Gmd MetrapdSan PLC 8* Cum Plf £1 - 
5Z%%4%(Ua0fl 

Grand MatrapoWan PLC 6%* Cum ftf £1 - 


Q raonrte Qoup PLC 11%* Deb 8tk 2014- 
£118(UeB4) 

O re me— Group PLC 7* Cnv Subrad Bde 
2003 (Red - £106 (Ma94) 

Chktn aee PLC APR (5 d 1) - 835% % 

Gdnneaa HgM Giobai Strategy Fd Pig Red 
PH *0.01 (European Rax* - £73.1489 
Gutonaw FSgM ha Aoc Raxf Ld Ptg Rad 
PrtKUntitf 0 dan c ed Grown Fd) - 


HOC Wdg* ScSd S410 04ong Kern 
Red - SH45% MS 5 .1 .1 2 % A %% 
0.16 .219883 41 -8348 .788 7.0304 
BBC HkJg* PLC 1 1 j 8B* BuBort Bda 2002 
S^atf - £108 


FMttexBu *dtegSo ete» S% * Pam mt Baer 

HrttaftSgSaJety 12* Porm M Bear^ 
Eng Site £1 (Reg £50000) - £116 JU 
Hdkte Hokhga PLC CM 5p - 63 
Hte EfWtaeertodHIdmlPLC 8B5N Can ftf 

Hwnliraa PlC Neat Vlg £l - 68+ 

Hammamon PLC Ort 25p - 34* 7 7 8 8 SO 


D- £115-08 

5p - 63 

C 855* Cian ftf 


£1000 - £119 % % 20 1 2% 
PLC ADR flftl] - 858% % %, 


Wkte-^iiadcan Tobacco Co Ld 5* Cum ftf 
8Bc£1 - 83% 4 (UaB4 
MtateAmeikMi Tobacco Co Ld 0* 2nd 
Cum Prf Stk £1 - 644 (UaB4) 

Mteh PHratawn Co PIC BH dan let Prf £1 


£1-107 

Bund PLC 7* cm urn Li Ok saw - £108 

Biamah Coabol PLC 7%N Con Rad ftf £1 - 
70 (IJe04) 

Burton Group PLC 8* Ow Una Ln BU( 1896/ 
2001 -£902 

Buda Unteg PLC 10* 0fcQ Cm Cum Red 
Prf 1994 10p-3%(31My9q 

Cdiyrn PLC 10* Clan Prf £1 -118 
CZTMy*} 

CdHomta Energy Co too Sha Of Com Stti 
800675 -£11299801+ 

CariWa Graup nc 408* (NaQ RmI Cnv Prf 
1996 £1-72 p7My94) 

Carton C omnaafc ad c na PLC ADR (2d) - 
828% 31 02 

Carton C am aa toute d PLC 7%« Cmr 
Subord Bda 2007EReg tSDOOf - £139% 
CUe»4) 

Gorton Conancail ca Mona ftJC 7%K Cm 
SUbcad to 2007(Br £5000) - £136 (1Ja94) 

Cdar Alan Hdga PLC 5* Cum M £1 - £48 
48%(1JaB4) 

CaterpBar Inc She of Com StkBl -8106%+ 

CWteigten C u i paaUui i PLC W tei id da to wti 
tor Old-1 p7My94) 

CBy Site E*t*de PLC *25* Cm Cum Red 
Prf £1 - 71 

CoaaU CorpORdtan She ol Con Sdc 8033 V 
S - 328% 

Coat* Patona PLC 4%H Una Ln SIX 2002X17 
-B84 (Ue94) 

Coate PMona PLC B%* Una Ln Stt 2002/07 


Hateas tec Sha of Com &k SOJB - 333+ 
HOedown HUge PLC ADR(4:1) - S8JSS 
Hcknaa ftotadtei Group tee Sha of Cam Stk 
8029 - 25 

Hopteneon a Group PLC (L29K CUn Prf El - 
80+ 

M PLC 5%M Ltaa Ln 88c 2001X18 - £70 

( 1 M« _ 

IS HEmalqwn Raid NV Old fU.01 -£1B% 
16*819 

ledand Group RC Cm Ckan fted ftf 20p - 
112% a 

hduafelal Cantrd Swriooa Grp PlCOrd Wp - 

W 

tefl Stock Enhaipa of LBOUtep of hid 7%K 
Mg (Mb Sdc 90« - £100 
tefl Stock Entaige Of UKftffcp Of M0%* 
Mtg Dab Stk 2016 -£104% 
kWl Ute PLC CWW»LH)-IE14B1JWp 
1923 

Jwdtea MaDwaon Mfga Ld Ord 3025 Mona 
Kong Ragtetert - 3H30% 99JB J988 
60084831 

Jtettoa Strategic riklga Ld Ort 3005 (Hong 
Kong Ra0Mw) - £ZJ7 2JM £KB% 

4)69771 

Jaraay Bectricky Co Id “A* Ord £1 - £24 
(Z7 Uj* 4) 

Jgearpe PLC 7Sp (N4Q Cm CWB R4d ftf 


Uvwon'Groip Cteonm PLC 7^p +te* Cm 
Cun fled ftMOp-145 
lahnaaUlatthay RC 8* Cm Cun Prf £1 - 

900(31Mye4 

UpteriyndaB tetFuxUd Dtetribuboi 

3dIWJ1 0 -472C7Mj®4) 

teea-fixopo Fund Ld SbaflDR to B) 30.10 
teirA&toASa MC125D - 


iS5». 


AOR (1.1) - *155 


I nc 9* let Mg Dab BOc 88/ 


LA8MO PLC 10%* D8b Stk 200B - £103 
01My94) 

Lawte B Hakiack BUkJng Soctety 13%* 
Pwm tet Bowing Sha £1000 - £118% 20% 
12 

Leeds P atmwwrt BuMteg Society 13%* 
Perm Irri Boorteg ESOOOO - £129% 

Lawte(Jahrt)Pwtnwatep njCSN Cum Prf 3tk 
£1 -62 % fW*9fl 

Iwx Sonrice PLC 8%* Cum ftf £1 - 89+ 

Lombwd North Cantral PLC 8* Cum iid Prf 
Cl -62+ 

Lundwi maan W Ion W Group PLC AOR Bri?- 
>8% (91My84) 

London CacuBaa PLC Old Ip - 4%+ 

Loraho PLC ADR C<ri) - S2 j 04 

Loahai PLC mt Cm Cun Red Prf £1 - 129 
31 

UnrfWm) A Co PLC 9J5* Clan Cm Rad Prf 
£1-93 6% 8 

Lowefftabart H) A Co PLC 8%* lot Cum ftf 
£1 -35 (27M|4M) 

Lowe ffl obart K) 6 Co PLC 87 J* (Net) Cm 
Cun Rad Prf lOp * 32 C»uyB4) 

UBrfJ PLC 355* Cum Prf Slk £1 -53+ 

MEPC PLC9%* lat Mte Deb Blk 97/20IB - 
£ 102 + 

MBPC PLC 8* Un* Ln SR 200005 - £91 2 
a 

MB>C PLC 10%* Una Ln 6tk 2032 - £104 
BlUyM 

McAlplna(Naw9 PLC 9* Cun ftlET -104 
(81M»9fl 

McCarmy & Buna PLC 8JS* Cum Rad ftf 
2003 £1 - 86 % 

McCafliy & Stone PLC 7* Cm Una Ln Sdc 
904)4 - £72% 5 

Mcteemey Rropamaa PLC 'A* Old acm.10 - 


Mcteamay ftopwitea PLC 'A* Old Km.io - 
IEOO0+ 

Uanderti Oriental MamabonW Ld Old 804)5 
{Kong Kong Rag) - £093 (27My94) 

Marta A Spanoar PLC ADR (Bel) - 8359 
9843 


i PLC ADR (4.1)-S8%4 
nt Ratal Group PLC A) 


Merahwit Ratal Group PLC 6%M Cm Ute 
Ln Slk 88434 - £68 C27My94) 

Mercury tete maM o na Um Thrt Ld Ptg Red 
Prf ip (Fteawva Fua* - £406196 
Manaay .OSelwB StuSng Duel Sha of 
NPVflSctod FteKt - 122.1 (Z7My94) 
MUtend Bank PLC 14* Subord Un* Ln 9fc 

aocaw- ei 2 i% % 

Metea too Sha of Ctan a Com Bdi 8005 - 
835% 

NFC PLC 7%N Cm Bd* 2007tPag) - £100 

% 

NMC Group RjC Warrants to aub for Sha - 


13S{UaS4) 

NMC Group RC 7 JBp (N«q Cun Red Cnv 
ftf lOp - 123 

NeMonel Mert c*l C nterptewe Inc BKi <H Com 
Sdc 8005-816% 

NOtewl Power PLC ADR CIOcl) - S83JB6 


NulteMl WtataMer Bank PLC 12%* 
SUbord On Ln 80c 2004 - £117% % 
NarrerthB PLC &775K Cum ftf£1 -77% 
NawMsde BuMteg Sodaty 12%* Penn 
Erterest Bewteg Sha £1000 - £112% % % 
34 

News intamreonW PLC 4^* (Frtey 7*) lat 
Cum ftf £1 -88+ 

Next PLC 7* 'A* Cum Prf £1 - 72 


Nath of Mwid BtBdteg Baia^ 12%* 
Perm tet Beartxj (C100Q - £112% (Ua94) 


Item Int Bearing (£1000) - £112% (Ma84) 
ftroUc Gas & Badrtc Co She of Oom Blk 15 
- S2S7 p7My94) 

PWMWKl Gropp PLC Ort 2Sp - 202 5 7 
Rataraon Zochonte RC 10* Can ftf £1 - 
117% (B1MyS+ 

Paal Hdga PLC 10* Cum ftf 60p - 60 


Pool Hdga PLC 62S* (NeQ Cm Cun Nan- 
Vlg Prf El - 12094 1 
Peel South East Ld 10* latMtgOabto 
2028 - £94% (31MyS4) 

Penkwuter 5 Ortontal Suam Nav Co 5* Oum 
PHSdr-£Sl%fTJo94) 

Parktea Foocte PLC OpCNaq Cun Cnv Rad ftf 
lOp - 91 (27My94) 

Pskolna SA Ort Site NPV (Brin Ctewm 1^ 
510)-BF10&2BE0 86 90 800 
PEwrUtrodc (taup PLC 8JS* Cm ftf 91/ 
2001 10p-81%(31My94) 


POwwGen PLC AE3R (tttl) - £46472+ 
Premter Health Group PLC Ord lp-1% 
FLEAHdg* PLC 12* Cm Itea Ln Sta 2000 
- £B4(1Je94) 

RPH Ld 9M Una Ln S6C9EM004 - £97 
R1Z CorporaBan PLC 3J32S* 'A' Cum ftf 
£1 - 48 61 

Rarer Becbunics PLC ADR tbl) ' M-B3 
Rartc Organteofkn PLC ADR (£1 ) -Bi 1 j 3 
Read tetamdkmW PIC44M (ftdyTfQCum 
ftf £1 -75fUaB4) 

Rararid PLC 7%N 2nd Dab 8tk B2X77 - 
£95% 

Ftenoki PLC 8* lot Dab Stk SIAM - £99 
Ratal OorpraMon PLC 4£SK (Rn|y 8%M) 
CUn ftf £1 - 83 (27MyS4) 

Ratal Corporaitei PLC 455* (FMy6%*) 
Cun 3rt Prf £1 - 64% (1<M4 
Royal Bark of Canada CrartwiFd LdPrg 
Rad Pit 80 .001 -KS7% 

Rugby 4%uk] PLC 6* Urwt*iStk93XM- 
£89%(1Jae+ 

SCEorap Shs Of Own 88c of NPV - *14.169 
(31My94) 

BaaMd A SortoN Oo FU3 AOR (Jrf) - 38 
(U0B4) 

SateaburyfJ) RjC 8* ted Ltaa Ln » - £87 
(uae+ 

Sdwl PUS 8%N Cum Rad M 20014)5 £T - 
103 

Setaudar Jppwoao Warrant Raid Ld EDR *n 
Donam 100 Sha 4 10000 Shrf - 3185 
P7My9+ 

ScrtUah Hydro O lCtl te PLC ttd 60p - 327 8 
% 9 9 % 30 1 1 % ^7 2 22* .173%* .78 
4 5% 

Boonidi Power PLC Ort SOp - 330 1* 7 % a 
8 % 9 9 .17 % 4)48 40 40 % 1 .17% JB7 2 
2 .17 % J7 3 3 .17 4 4* 5 % 8 
Sawa PLC %9N (FMy 7*) ’A* Cum Prf £1 - 
70 

Swtem RhorCrooategPLCS* tedaoMJHwd 


Swtem nuarCrowrtngPLCBK tedaoMJHwd 
Dab 3* 2012 (8344H) - £114%+ 
SharftempartBnirwangCo PLC Old Sha (Br) 
2Sp (Cpn 102)-7O5 

Shot TranqxxtSTradhigCa PLC 5%* lat 

PifCWr+n-OO 

Shield Group PLC CM 5p- 15% 

StMd Qwp PLC 584* pug Cm Cun Red 
ftf£1 -S1%* 

Shoprtta Ftaanoa (UK) PUS 7 «78g+M Cun 
Rad ftf Sha 2009 - 83% 8% pi My94) 
Signet Group PLC ADR (kl)- £1405+ 
SteitaB (WBtait PLC 6428* Cm Cun Rad 
ftf £1 -57 (31My94) 


SJdptcn BuMng SocMy i£%* Pwm n 
Bawteg She eiooo- £iis% % 


SmMi k Nopfmv PLC 5%* Cum Pit £1 -80 
fUe94) 

Sm«h Now Court RC 12* Suboid Una Ln 
Bdi 2001 - £105 (1J094) 

Smart (W>q Group PLC -8* CM lOp - 107 
Smtth (WXJ Group PLC 5%H Rod Une Ln 


Slk - £31 (Ue04) 

SmkhHha Beadram RC ADR (5rf) - S2S%+ 

anahWha Bsaoham PLCUMNMtoe AOR 
prf) - 828% % % % % 

Sorth Ste H od d We water PLC 9%* Rad 
Deb Sat 98SOOO - £102 (27My94) 

Slag FUrttaro Hdga PLC 11* Oum Prf £1 - 
110fUa04) 

tandart Chwtarod PLC 12%* Bubort Una 
Ui Stk 2002/07 -£112% 

SUcMfeSpaakman RC 9%K Rad Oim ftf 
£1 -101 (31My04) 

Bymanda En gteearing RC CM Gp - 39 40 1 


THFC (tedwred) Ld G45M tndwfrUtead Slk 
£020(047880 - £123 piMyOG 


TBB^rou^ Ri 1Q%* StexM Ln 98c 2008 


TT Group PLC 10475* Cm Corn Rad ftf 
Sha£1 1697 - 280 00 2(275*94) 

Wte 5 Lyle PLC ADR Hd) - 82549 {IJaM) 
TaW A Lyle PLC 8%*fL33* pkat tax crott- 
iQCum ftf £1 -74(1 Ja94 
Twwo PLC ADR (in) - 33.1 p1/m»4) 

Taeco PLC 4* Urn Deep Dtec Ln Stk 2008 - 
£01% (IJaM) 

TrtaawMf IrtamWtewl FUnd U Pig Sha SELtn 

Wb to BQ - 8Z7930 28084 (31My04) 
THORN B4I PLC ADR (in) -£1023 
CZ7My04) 

Towtee RC 8* *B* F%) ftf sop - 78 
(31M y94) 

IVaMgar Horew PLC 9%K Une Ln S6c 2000/ 
06-EB2 

T a n aateU i u Htedtega RC B 8* Cm ftf £1 
-959 

Ttemport Oevotapment Group RC 9%N 
Una Ln Stk 96/2000 - £103 (81My94) 
Utegnto PLC ADR (W) - *5% (»1My»fl 

Urtgata RC 445* Cum Prf £1 - 78 
LkVgata PIC 5* Una Ln Stk 91/96 - CM 
pIMyM) . 


UMgate PIC 9%N Una In Stk 91X96 - £68 

. . 


JJ2Sc AOR f4rt) - 36047 OJa94) 
n humaHaral Co PLC 6* din ftf i 


union MamatfanN Co PLC 6* Cun ftf 88c 

£1 -54 

uttay CTOte PLC Wterwit* to aub for Ort - 
23 S 335 

Vwa Group RC 8%* A Cun Pit £1 - 38% 
(tJafM) 

VteocGnxgiPLC 10J5* Deb Stt 2018- 
£110% 

Vlefcara PIC SH CmrfTax ftaa To SQriPrf 
Stk £1 -68 

Vodatew Grouo PLC A0R(1Qn) - S79 % % 

% M 


Wagon hduatrU Hdga PIC 74&p +te* Cm 
Ptg ftf IQp -147 fl Ja04) 

W86iwai)Cn»+ PUSCrt Gp - 28 
Wtataag (S.O) Group PLC 7%* cum Prf £1 
-98% 

WHmaughapfldH RC 6%H Cun Rod ftf 
2006 fi - 97% 9 (27My94) 

VVHoama PLCADR(lrn - S84B5 

Wedn FWgo 8 Company Shs of Com Stk S3 - 

*1B3%eniy94) 

WNttpawi PIC 8* Srd Cum ftf 85c £1 - 86 
(U«fl 

WEritaraod PIC 7* 3rd Cbm ftf B3C £1 - 
74%%(Wa0fl 

Wtkbroad PLC 4%* Rad Dab Sfc 990004 - 
£71 fUeM) 

WMbread PLC 7%N Una Ln to acne - 

£ 93 + 

WHtbwd PLC 7%* Urn Li 88(980000 - 

WMtaraM HLCI^H Unin 88t 800QTO6 - 
£105 

WAtaane Hdga PLC 10%* Cum ftf £1 - 12S 
4 

Wila Cranxm Group RC AOR (Brf) - 
£12424599+ 1124869+ 


I PUS 6%* Ulte Ln to 92/97 


WMutt plc io%* cum Prf ei - va 
(IM0+ 


Wymate Gwrfwr Oanbaa RC 35* ffM) Cm 
Cum Rad ftf £1 - 1S3 <Z7My94) 


XwtK carp cam sue SI -3101% 071494) 
YWnUre-iyne Taaa TV fidoi RC wee to 


Ytefcdblre-'iyna Taea TV Hdga PLC web to 
nte for Ort- 150 

YUa Ctate « Co PLC 11%* Cum Rad ftf 
198(V20CB £1 - MB 01MV94) 

Ztanbta CauoMalad Copper Mtiaa UTB* 
Ort rfH)-22S(27My94) 


Lrewd Satea tevutenant nut Ld Rg Rod 
ftf aip UK. Adro Fund - BSJ3 13JB 

Lrowd Sateet h«w*nt Treat Ld Ptaftad 
ftf (Lip LUC. UgUkl Aantt Rted - E10 


Lrered Sateet towamore That Ld Pto Rad 
ftf aip Jriwi Endex Rmd - 0EL2f1J*94) 

London 5 St Lawranco Inwiutt nent RjCOrt 
fip - 147 

Mar^anrerRaenAmwCo'e Tta PLCWte to 

nte tar Ort -43% 

Nartlnm Induw roprarThwt PLC Ort £1 - 
5ZO(Z7My04) 

Rerteee Ranch li iw ju O ner* TTuat PECSeoa 

■B" VmrntM to ate tar Ort - a* 

Hghte and Earoea tev Dint PLC S%* Can 
Prf £1-84+ 

Sphere I nv eabne nt Treat PLC Revtead Ww- 
rant* to arte for Ort -7% 

Toonpia Bar Imaabmnr Tnwt PLC 7* Com 

ftf StkCI -74p7Vy94) 

Updneoi k wa at tn ont Oo PIC Ort 28p - 590 
(MaBR 

Wlgaiora ftoperty tovarenw* Trt PLOMta to 
Site for Ort - 46 8 

wean bmatmant Oo PLC 6* Dab to 96/BB 


Inv e stmen t Trusts 

Abtnot New Daen Em Dust PIC C are GOp 


Berea GMord Japan Tnwt PLC Wla to SUb 
Ort Shs -218 23 

Bare* ereort SMn Mppon PLC Wtearta u 
oubiorCM-'isasruaeR . 

Bartons teroatmwrf That PLC 10%* EMb 
Slk 2916- £108 (1Je9f) 
awnramred teMaBnanta Ihre RC Wla to 

85i(CUi4-£56%(1Je9+ 

BrWah Aoaoto Tnwt PLC EqteOaa hdnt ULS 
2005 IQp - 151 

Brfttsrt tevaabnart Truet PLC 11.129* 
Soand DM to 2012 - £114% 

Capkal Peering That RJS Ort 25p - 445 9B 
(31MS*+ 

Chtea tewwknent 5 ETeert unu eid F a LdRad 
RPg Prf(FyPt«rmi» in unite 100) - *10% 
P1My94) 

Cteroenta Korae Eroerateg Gnwfii ftndSha 
310 (Rag Lud - 813% 13% 13% (Uo94) 
Dunedin Income Growth kw7*t PLC3%* 
Own ftf to - £59 (2711/94) 

Stfah * Scottlart hnealmi PIC*B*28p- 

' 113% (Z7M/94) 

Bvopean AaeetsTnnt NVBrH 1 (Cpn 18 )- 
MKj 42 (31MyM) 

FkteBy Baopaan Mure RC Equky Utegad 
Una Ln SSt 2091 - M8S1%DJa9p 
Bwteuty ttnrtlar Cote Tnwt PLC Zbro Dfv Prf 
2Sp- 177% 

ForoMi » cm inwit That RC 34* paly 
5*) Cum ftf to £1 - 87+ 

Gwrtnoa toteh Inc & Grtti Tbt PLCZaro Divi- 
dend Prf 1 0p -103% 

Gwtmoro ShwM Baity Ihiet PLC Gnued 
Ort Inc 1 0p - 109% W 10 
Gwtmaro Vteuo tewatmante PLC 1244* 

Dab Blk 1995 - B 02% 

HTR Jopanoeo SmeBer Cole TVuot PLCOtd 
2Sp-111 1 % 442 44 %%33 
hvaatam CftAI Trust PLC 7%N Dab to 
92/97 - £07 (3114/94) 

Laxart Behct Enwetment That Ld P|g Rad 
ftf aip Octal Active Fund - £1343 1343 
1348 


VWwi kmertnent Oo PLC 6%M Deb to 
2016 - £98 (2711/94) 


USM Appendix 


BLP Group PLC Qd SOp - 145 
BLP Dap PIC 8p 8>M) Cm Cum Red ftf 
IDp-110 

FBD Haktnga PLC Ort EPOLSO - C14 

0iuye+ 

Mdtend & Soature Reaouroea PLC Ort lOp - 
3 A* 

Rato Group PLC Ort kfiOOS - E042 
(31U/9R 

Total System* RC Ort 6p - 26 
UrWed Energy RjC Wts to nte far Ort - 4% 
(UOB4) 


Rude 535^2} 


Acfcdl Cwr PLC Ort 5p - £022 (51My94) 
Adwro&NwrlaHmd Ma nagement Wotfdtev- 
a*t Bond FUid tec - £1448 (31MyM) 

Ann Street B rewery Oo Ld Ord £1 -E3% 
Aiaaml FootbaS Chte RC Ckd EI -B4S0 
(27UyM) 

Aatan Wa Rjottrtl Club PLC Ort £6(1 vote) 
-£75(Ua94) 

Bban tadunfal Graup PIC <M Ip - £ai17B 
ai3(VJo94) 

Brancota Hrtdngp PLC Ort 5p - 1042+ 
Brod te refc Group PLC Ord 1t$>- 32 
0784/94) 


Cavonhwn PLC Od Ip - Sai3 

CrowttwfJohn Edam* Hdga fi%* Cun Prf 

£1 - £DJ (1>te94) 

[X&SJUtanaawnBrt RC ORl 10p - 04 

rijflftJ 

□maon HWga PLC Ort lOp -S*-7 
Da Grucny (Abr a ha m) Ob Ud (M SOp- £14 

BnBPUC Old Sp- 045 (31M/9R 

Precast Broodceat Corpondian PLC Od fip - 
QLS6 

Gate (aeorgri* Cold Ort EI-Mgl WW 

Gander HokEng* RC Ond Ip^ - SOOT (l-teW) 
Oraanatar Hatela PUCXkd 1ft>-EO%DJ«»f 
GuwnwyGn UghtGoldOrt IQp - £9.735 
073 073 

HarbomaTwwnte Ld Ort £1 - £14 ptMjflfl 

fra Orate PtD Ord £1 - OU+ 

Kotawart Banaaafirt) Fund ton OortteanM . 

Curopewi Fund - D442.172T 
XM/Moit Bonaor+nQ Fund Man japwwaa 

be Hchda Starea Id Old £1 - £24 246 
Lateuroltma tana PLC Ord 30p - E0.14 

LtopodTO A Alrtaric Grounds PlCttd » - 
£580(hteB4) 

MasCGuwneeytMand Gold Rmd Accum 
Unka- £34.141+ 

Mamteeawr City FootboR Ckte PIC *A" Od 
Cl Non-Mg-EB 

Mwtea & Merowitlo Saoteltea PLC Ort 
* ‘ KXL20 - £1% 

Motth MamaUonte Group PLC Od Ip - 

cum 

KteOanW QM Hdga PLC Ord «$> - £847 
Nawtoy Baoaoouroe PLC Ort £100 - £2060 

(3164/34) 

Norih Ware Ewtaitaion PLC Ort ip - 2% 
(31MyM 

Pm Andun RtuoaB PtC Old Ip - £008 
(27My84) 

PWRCatweetUrotpoogLd£1 -£445(1 JaB4) 
ParpacuodJeraari Oflahoro Aatan tortw 
Markara- 31.7393 (IJaM) 

Pwpatual(Jena/) Oflkhore Emerging Ort - 
38468940 (IJaEM) 

PWpatuWperaey) OfMiero Japwi Growth Fd 

- $14698 (IJaBR 

PWpMuteUeraay) OBahora UK Grawte - 
£1.749833+324198+ 

Rangaro Foattwl Ckte PLC Ort lOp - £145 
Sateet Endurttea PLC Now Ort 7%p (5p Pc* 

- £30475 

Saudi Grew KMga PLC Ort Ip - £04126 
Soutwm Nawepaparo PLC Ort £1 -B422 
4%(IJM4) 

Sun Ol Britten Ld Ol Ropfly to UnBa ip - 
38 


GntamaCanmdtan PLC Od Ip^ ■ £045 
046125 (1J«M) 

1hrt»(Date)& Co Plff OKI 25p - £2% 

piMyW) 

ntaghu PLC Od 3p - £948 
. Dracfcar Network PLC Ord £1 -£11% 
pi M/94 

vwarinaw Drug Co PLC (kd Cl -C4 

P7M/M) 

WWdadnan SacuWaa RC Ort 5p - GDIS 
wadderbum SaeurWaa PLC Wla to wtelw 

Ort-£OftP7»W 
Wteetatat 14 ’A* NonV Ort 25p - £15% 
wmcneatar Mu« Madte PLC Ort 5p - B9%+ 
0141+ 

Yawa Broa wma Lodgre RC CM 25p - 

£24bplMy94) . . 


fees cl ° 6 


.-.p* 

,^V r 


RULE 535 (4) (a) 

Barpaftta mmfctUn pacuiMto 
whom principal martra* te outaida 
ttw UK and Rppubtic of Mand. 
Quotation h«a not bam granted hi 
London and dmSngama not 
recorded hi tha Official Ult 


BreEaar Asia HS38%.7%(14 
Beta Kkwan 110(24) 

Baba Coacada Corp £9%(1- fl 
C»y Dev 83745(1 4} 

Comm Paychtetrtc Centem 314%(2J3 
Oorw expEudBon AS047294844748(24i 
Cone Raaouroa* 3&0{27^ 

DuEkar Bqknadon 338(24) 

P. Bare Hatabe & EDI FR242P14) 
GreerwWe MHng 830218(14) 

Kukm MalayitaOrt SO +P4) 
toteydan P lu n tt Bon* 80 +gT^ 

Nih FBndera Mtoae 430(24) 

08 Search 4&D(2.B) 

CTOtt Ol & Gtea 31% +(274) 
PddN»MntegF288P74) 

Regal Hotate+Mga) HS14S1(I4) 

VUant Cons 18%P4) 



is-ijd&t. 


fly Pmwtmhn ot ttm Stock Dsctungi Creoo* 


FINANCIAL TIMES CONFERENCES 


North Sea Oil and Gas 


London, 13 & 14 June 1994 


The conference will review exploration and production in the main sectors of the North 
Sea and consider the impact of current oil prices on activity in the province. 
Competitiveness and ways of reducing costs, operator-contractor relationships and 
abandonment will also be discussed. 

Speakers taking part include:- 


Mr Heinz C Rothermund 

Shell UK Exploration and Production 


Mr Johannes Maters 

European Commission 


Mr R Jack Criswell 

Amoco (UK) Exploration Company 


Mr Norman Chambers 

Brown & Root Limited 


Mr Kyrre Nese 

Staton 


Dr Rex Galsford 

Amerada Hess Limited 


Mr Mike A Smith 

Scottish Power plc 


Mr Peter D Gaffney 

Gaffney, Cline & Associates 


Mr Tim Eggar MP 

Minister for Energy 


Dr Peter Scholten 

Ministry of Economic Affairs, The Netherlands 


Pa, *:**~* 


A FINANCIAL TIMES CONFERENCE in association with ST Nlfc Wsi J5T TER, 
NORTH SEA LETTER aiid EUROPEAN OFFSHORE NEWS 


NORTH SEA OIL & GAS 
CONFERENCE 


CU Plearc Bend me conference details 
G Please Bend me details an marketing o p port un ities 
O Please send me details on the FT Newsletter 


Financial Times Conference Organisation 
PO Box 3651, London SW12 8PH, 

Tet 081-673 9000 Fax: 081-673 1335 


Name Mt/Mra/Ms/Otha' 

Position 

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13 


r .'CJ. 



FINANCIAL TIMES WEEKEND JUNE 4/JXJNE 5 1994 


LONDON STOCK EXCHANGE 


MARKET fffiPORT 


FT-SE-A . AB-Shane lode* 


Shares close strongly in higher trading volume 


BquRy Shares Tr a Jod 

Turnover by vohm (piBlort. Ettfetang: 
Mnwnarfest DurinessstdauBrnn tumow 

t,ooo ~~~ 


fey.. 




- >{ J * "• 

•**»***,". ■ 
S* ** ^ - 

HX.*...,,. . r_> 






By Terry Byfand 
UK Stock Market Etfltor 

A turbulent trading session 
yesterday saw UK equities iwtana 

tte recovery the previous day but 

only after moving through succes- 
sive ranges totalling more than so 
points on the FT-SE ZOO forfar The 
driving force came from the 
gilt-edged market where krag-dated 
British government bonds ended 
with gains of around l% points, also 
after a volatile, performance as 
Frankfurt returned from Thursday’s 
holiday closure. 

By the dose, the ST-SE 100 initor 
was 17 points ahead at 2,997.6. After 
an uncertain start, the Footsie 
showed a gain of 23.6 at mid-ses- 
sion, standing at 3 #)L 4 . This .suc- 
cessful recapture of the 3,000 marie 
came just as a leading Swiss invest- 


TRADING VOLUME 


■ Major Stocks Yesterday. 

VoL Ctoetog Day* 
OOOa prtc« aanp» 


ment florae cut its Footsie year-end 
forecast from 4500 to 4000, accord- 
ing to market traders; if so, the tim- 
ing' was unfortunate, far the market 
quickly turned tail, running back to 
49644 to show a net foil of 12 2. 

The setback reflected an uncer- 
tain start to trading in New York 
where Federal bonds at first reacted 
sharply to a fan in May unemploy- 
ment which appeared to threaten 
action from the Federal Reserve. 
But US bonds, and Wall Street, soon 
turned higher and the UK gilts fol- 
lowed suit Firmness in sterling 
helped the mood in the UK markets. 

Further selective buying by the 
' institutions was indicated yesterday 
by Seaq volume of 725.6m shares, 

- nearly I&5 per cent on Thursday's 
' total Traders said that the big. 
funds have become more willing to 
buy equities at current levels. 


Account Dealing Baton 

■m Pitiaip.' 

May IS 

Jm fl 

Jtei 35 

Option noctoratlnri' 

Jun 2 

Jtel IB 

Jm 90 

Lari Dotage 

Jw 3 

Jin 17 

Jti 1 

AritiriDK 

Jin 19 

Jun 27 

JU 11 

l| 

!i 

■nor take 

phea Iron ms 


although they are still alarmed tv 
the instability of the gov ernment 
bond market It was clear that UK 
share prices remain at the mercy of 
developments in bond markets. 

After foilin g heavily earl for this 
week, the FT-SE 100 Index closed 
last night with a gafo of 3L14 points 
over the fbnr day market week. But 
the extended three week equity 
account which also closed last n ight 
has seen a foil of nearly .4 per cent 


in the Footsie as investors have 
reacted to fears that the downward 
cycle in European interest rates 
may be nearzng its end, while the 
US authorities are under presure to 
raise rates again. 

With the UK seen as further into 
recovery than other European econ- 
omies. the stock market's hopes for 
a base rate cut have vanish ed , to be 
replaced by fears that rates will be 
forced higher before the year-end. 

Next week brings a relatively 
light calendar of economic news an 
both. ™fog of the Atlantic and some 
market strategists believe that this 
will offer UK share prices the oppor- 
tunity to extend their recovery. 

Across the broader range of the 
market, recovery has been less sig- 
nificant. The FT-SE Mid 250 Tndwr 
gained only 1 point to 4557.3 yester- 
day, leaving a loss of 15 points on 


the week and around 4.4 pa- cent 
over the three week account 

Yesterday’s rally was somewhat 
uneven, with share gains more 
often reflecting bargain-hunting fol- 
lowing losses earlier in the week 
than longer term investment views. 
Financial stocks, with fortunes 
closely linked to the performance of 
securities markets, advanced 
sharply. 

Strong gains in short-dated gov- 
ernment bonds again suggested that 
recent selling has been overdone 
and that investors hope that the 
widely-predicted rise in UK interest 
rates wDl be postponed for as long 
as possible. 

Consumer stocks, which have 
been badly hurt in the market 
shakeo ut, attracted support Food 
retailers, pharmaceuticals, and lei- 
sure stocks were all higher. 



SweecFTbiM) 


199* 


■ Keg Indicators 

Mew and ratios 


FT-SE Mid 250 

3557.3 

+1 JO 

dosing Index for June 3 — 

.2997J3 

FT-SBA350 

1516.6 

+6.7 

Change over week 

-.+31 .4 

FT-SE-A All-Share 

1509.98 

+8.09 

June 2 

2980.9 

FT-SE-A Afl-Share yield 

3J8 

(3.91) 


.2931^ 

FT Ordinary index 

2379.9 

+15.4 

May 31 

.29703 

FT-SE-A Non Fins p/e 

1926 

(1928) 



FT-SE 100 Fiit Jun 

2993.0 

+25.0 

High' - - 

.3004.4 

IQ yr Git yield 

8.49 

(8.66) 

LOW* . 

-2925.0 

Long gitt/eqiity yld ratio: 


(2^3) 

1 Intra-day high and kw for waak 


1994 


1O0 Index 


EQUITY FUTURES AND OPTIONS TRADING 


m 


Foocht 


Bit 

Bran*** 

sntt 

&gfcnf O t u*i»H 

s=r 

Bn Octet 


Etttonprat 



Bum 
Bwnrii CartnTf 
Ekrtcn 

CMtntof 
euxty sawenx 
ewer amp 
Canrfanf 

CMonCom&t 


MOO M 
. MOO 418 

. 890 SB 
MOO 568 
BBS At&i 
410 352 

2400 231 

1.000 275 

112 S344 
U 1 aw 
UU 838 
4JM0 <Zih 

2.100 nth 

STB 408 

1,600 no 

7JXU 3841s 
10W 282 

8400 388fe 
4*00 2481* 
40W 37812 
1200 184 

3,700 538 

- 1.100 530 

743 286 

W4 385 
2000 625 

1.800 428 

2300 443 

8.100 375Hj 

14000 281 

1 , 000 - 888 

10000 141 >2 

382 182 


♦t.q 

*6 

+i 

*3 

-a»* 

-i 

-5 

•a 


45 

-t 

-i 

4*2 


48 

+«2 

40 

117 


VOL Clateng Do/t 
OOtti prlo tint 


MEPCt 

MR 


Mtiattewirt 


Montecn {Hftnj 
NR5T 

PMWaribtat 
Ktftonti Pcwarf 
NM 

Next! Wm Wnurf 

Nonham Beet. 
Northern Foodof 


paot 


P U wr O ti it 

PiuteAtelf 


-41*1 
-T 
433. 
‘ -2 


194 

*T ■» ' 

• *4 • - 

Sjitwcior. ■ 

i$t* in iti. 


Comm. UHonf 

Cookaon 

CowtauMrf 

£KW 


atitlAflmSBWL 

ssrsr 

Brawns Unite 
FW 


reu «! 

'• 

■■ :■ ■ . 


ftny IQoLLT. 
Owvi 


OMimd 



amdHiLt 

CUS+ -■ - 

aset . 

OKU 

Otaneaa f.- 
HSBC |73p staff 


724 

888 

-5 

L400 

30*2 

-h 

4,100 

437. 

ta 

1.100 

*30*2 

+i*i 

128 

280 

-8 

828 

320 

. 42 

LOOO 

839 

-M*2 

1.400 

222 


781 

632 

-a 

1JW 

282 

+4 

1/UO 

614 

-a 

07 

410 

-A 

984 

aso 

-1 

2,100 

185 

-a 

901 

670 

-6 

US 

50* 


.1.100 

303 


088 

382 

-11 

.673 

m 

«7 

ion 

wa 

-4 

LOW 

138 

. -2 

*34 

138*2 

4*2 

1,700 

'227 


1JDW 

3K7 

40 

saw 

307 

+4 

saw 

548 

**h 

1J8W 

868 

+i 

9u4W 

484 

-a 

ZAOD 

438 

. 42 

1JM 

583 

48 

4,700 

173 

• 41 

400 

2.400 

ESS 

472 

42 

saw 

714 

4W 

121. 

363 

-46 


w 

HIZT 

(tecri 

BankOrg-t 
RaoUtl & CoBnanf 
PjeSmxtt 
RaadWt 
WMtaft 
Haotetef 
Rob ftojEot 
RjiBat: 

Stenabwyt 


4.100 141 - 421* 
UOO 173 

810 4SB *4 

1.100 158 «1 

172 874 -4 

6800 300*2 4% 

135 681 -2 

£300 121 

2400 212 

8.100 466 

zaoo 425 I 2 

iunn a u 

2900 600h -Ih 

087 038 

888 211 

378 ear 
678 810 

22*00 .648 

1200 178 

Z300 teoh 

6300 280 

280 882 

3.100 817 

10W 228 

1000 383 

1,000 580 

ijm 49i 

1,700 783 

1.200 213 

ajsoa 48712 

3.400 18) 


-g 

-a 

412 

40 

-1 


Derivatives markets continued 
to give good support to the 
recovery in the underlying 
equity market, writes Terry 
Byfand. Trading volume In the 
June contract on the Footsie 
had jumped to more than 
23,000 contracts in late trading 
last night However, the 
discount of the contract to the 


cash market which had been 
cut to four points In official 
trading bourse widened to 
nearly 10 points In later deals. 

Progress was erratic, 
however, with the discount 
narrowing at first but widening 
later as investors reacted 
nervously to trends in US bond 
markets. 


■ FT-SE 100 IW7EX FUTURES (UFFQ £2S per ftd Index petal 


(APT) 



Open 

Sod price 

Ctnrpe 


Law 

Eat voi 

Open int 

Jun 

2S6L0 

28S3S 

+2SL0 

opawfl 

2943.0 

23126 

48854 

Sap 

2884.0 

30C&6 

425 JS 

3006.0 


1484 

11484 

Dec 

2895.0 

301 * a 

+2&Q 

288SJ) 

?i^,n 

1 

251 


■ FT-3E MO 250 B4PSC FUTURES (L1FFQ CIO par fufl bitted point 

Jwi 35500 SSfl&O 4100 38600 3S50JJ 119 3699 

Sep SS6O0 35800 4100 3SE&0 35S5.0 349 948 

■ FT-SE MD 250 MDEX FUTURES fOMJQ CIO per U Mm point 


Soottfa*5Ne»-t 
Scot Hydn-BecL 
Scotitifi POwarf 
Stint 


-8 

48 

s 

48 

47 

46 


41 epan kaaraat 


35659 - 

Bguvx an* tor p ta tluoi sky- t Eaaci vokrne atown. 


771 


SownTranrf 


SWjet 
SteoghEata 


iMMiJA 

Sntiti « Naphawt 
SlMBNCMt 
SoM Baoctam Ut».t 


Stiiai Wtoa OW ar 
Soutta Watt. -BacL 


Stendtid Chmit 


Htitiaona CWtibM 


tat 


8.100 ssst, 
• 80S 178 

, 235- ■ 284 
789 TBS 
748 316 >2 
1200 818 


48*1 

*4 

-1 

43 

■eh 

41 


SMiJOanctit 

UOraapt 

Ttiroot 
Tata 4 Lyte 
aytor Wtaodrow 
Taacot . 
Uaana Watarf 
Thorn Ettif 
TQattst 


Lapcrta 

■jagti & Oanartif 


10 OQ 

135 

3J3D 

830 

2 AO 0 

Vaa 

388 


S78 

316 

534 

185 


Ksr 


-7 

45 

*1 WtitiiWMr 

46 WNM«hte 

■41 WWttraedt 

416 WMntiHIdga.' 

Vmt Cocrooc 


2.700 265 

1^00 388 

3* 1246 

884 616 

185 330 

478 340 

6800 118 
1,300 184 

an 308 

1 J 0 O 600% 

3.100 706 
2JO0 643 

888 £39 

2500 471 

iSOO 162% 

ZfBO 381 

1.100 » 

806 452 

346 661 

311 608 

178 514 

66 667 

322 334% 

<000 840 

831 217 

£700 308 

433 220 

701 386 

8.100 203>2 

61500 148 

288 415 

303 1« 

3JOO 208*2 

1.100 474 
1.1® 1080 
£800 228 
4000 B2V 

3*4 - 380 
£300 887 

810 326*2 
7S5 386 

&S00 017 

1200 080 
2.700 843 

287 610*2 +10*2 


-6 
-1 
-6 
-8 ■ 
- 1*2 
-a 
-8 
48 

46 
42 

47 
46 


-2 

41 
-a** 

♦i 

42 
42 
-3 

-a 

41 

-4 

-a 

■h 

-6 

418 

48 

-3 

-a 

-r 

*ah 

412 

-13 


■ PT-SE 100 INDEX OP170H (*2994) EtO per ftj fndflK po4il 

2B0O 2850 2900 2990 3000 9050 8100 9150 

OPCPCPCPCPCPCPCP 
JUD 203*2 4*2 153*j 7 110*2 12*2 25^ 38*2 45^ 18*2 78 I 117*2 8 154*2 

M Z13 15*2 TT1 2< 134 36*2 89*2 52 71*2 74*2 48 102*2 ST 135*2 18*2 174*2 

Me 233*2 32 196 44* 2 160 57*2127*275*2 98 95*2 74 122*2 BS*i 152*2 SB*z 188 
Sep 242 43 207 55 172 68 144 90 118 111 83 140*2 73 169*2 Kfo 202*2 
Dect 278 71*2 212*2 105 154*2 145 100*2197*2 

on mo M 7JH8 

■ EUHO STYLE FT-SE 100 WDEX OPTIOW (UFPQ CIO par fcS Indt poire 

■ 2825 2875 2923 2975 3023 3075 3125 3175 

An 172*2 6 124*2 9 83*2 16 5^2 31*2 Z7 57*2 12*2 83*2 • 136*2 2 182*2 

M 182 19*2 133 29*2117*2 44 88*2 83 « 87 40*2 1 18 25*2 151 16 190 

Aag 213*2 36*2 143*2 65 87 108 47 16B*2 

Sep 224 46 1S87B*2 101 12) 80 177*2 

Ocef 280 78*2 194*2 108 138*2 149 94*2 202*2 

Cota 2^38 net 1568 * UoM)tog MB tifeti. Praataca atom n band ga sMonan pdexs. 
t Lang dried e«fey enSK. 

■ EURO STYLE FT-SE 6BD 260 WDEX OPTIOW (OMUQ CIO per U IfiQp potnt 


3650 


3700 


acen 4«oo 
58 43 38 69*2 
t pitas wd «8nee Wat ri Ajopo. 


3750 


FT-SE-A INDICES - LEADERS A LAGGARDS 


Percentage dwiges since Oecendsar 31 1893 baaed on Friday Jane 3 1994 
Mfitanmw +80} StatMten -483 Paver? - 


138 605*2 
Bit 944 
1600 332 

1.100 158% 


«** 

48 

-8 


S& B 


i/xn 

434 . 

. 48 

tetaper . 

385 

183 

-2 

wo 

361 

-» 

Wotatoyt 

W3 

778 

-2 

MOO 

581 

m 

YoVtitieBect 

173 

582 

-1 

ii/no 

■M2 

-2 

YtettMWrie 

913 

407*z 

■u 

308 

S48 

44 

Ztewcaf 

tea 

873 


MA«ltarlN« +8.13 TsdtoaAARati 

. +804 Mti*3BKBpri 

+4J1 * FT-SE Ud 250 ■ IT __ 

FT-SE SDMCwnir +179 SpW*. Wtass 8 Odris - 

EftaMdag +1J3 FT-SE HU 250 

CO, tainted +181 Sridcn 

IM eararton +ia Bitidng 6 COaxTtdkx 

HsSa +867 ta KV aat ta. 

IriaaeilteMi +878 ttetaot Food 

FT-SE SBdOt +816 teNWMarTarit 

+882 FT-SE-A A»Qare 

-on wwiteta 

-204 TmpBrt 


- 8.11 

. -5J6 FT-6tiO Maaa tedai . 
. -868 MnOW- 

-603 i fc- . f +ft nhr GDoBi 

.-8.17 mjwiwi- 

. -7.10 Batata} 

.-686 


Samoa taBtivkstitrt atfccaoati ration 
ri gns atari «r am ■» mtad dam Wri 


■a 4tiK Batidi rit SEM ■ 

i ft-5e we ttiri iu— i t 



SappatSmtai 


-4LBS Fr-SE WO. 

-448 CD n wr Sente 




M' - SE Actuaries Share indices 



ffney 


Jw 3 

W 

B#ye» 

JW 2. 

+■ 1 

IteVSI 

Wri 

ago 

m 

Earn. 

m* 

K 

ata 

Mad- Tdti 
ytt Rten 

IBM 

M#i tea 


np 

Stas CocWMan 

tea 

FT-6E 108 

■ 2987 J! 

+05 

299U 

29313 

29703 

28293 

4.12 

631 

17.29 

4079 

111532 

35203 

20. 

2B3U 

1/6 

J5>M 

2094 

ma 

23/7784 

ms 

FT-SE m TSB 

35573 


35*3 

3S3L7 

35643 

3173.1 

147 

5J3 

21-20 

4636 

120076 

41ESJ 

38 

35377 

1A 

41528 

3®W 

11704 

21/lflB 


FFSE W 2W k tea Inate 

35822 


35615 

95443 

35713 

31933 

331 

8.18 

1061 

4138 

130439 

4M07 

19/1 

35440 

1* 

41807 

W1A< 

13763 

21/V86 

rl T r 

FMM39I ■■ 

UtM 

+OA 

15083 

1490.1 

1508.7 

HtU 

838 

633 

1837 

19JB 

115436 

17713 

20 

14W.1 

W 

17703 

200* 

BU 

Urt/BB 


FT4E tatiCy . 

197130 

-Ol 

167254 

1872.16 

187731 

162336 

239 

431 

2823 

1 9.1B 

143014 

2M4J8 

40 

Wrt3B 

3/6 

2HC3B 

*an* 

an 

31AM2 

ttrni 

1 Tit* - 

FT-SE teaCai a ke IMS - 

' 185115 

-01 

185235 

185130 

185839 

163838 

115 

435 

2834 

1935 

142238 

288072 

40 

1 12529 

4/1 

298872 

*08* 

0079 

31/1292 

FT-SE-A AU-SHME ' 150028 40.4 

■ FT-SE Actarlee AIFSInra 

150359 

148433 

150132 

140030 

139 

6.46 

1B3B 

19.48 

117036 

I7S4.11 

20 

14M33 

Ite 

1784.11 

20/94 

1132 

13/12/74 




* *» 

mu^ i! 



Day 1 ! Tear 

at 

Earn. 


ToU 


— H 

84 —■■■■- 



Sam C( 




Jw 3 c 

9oe% Jw 2 ten 1 May 31 aso 

i«% yw% 

raw jtt 

Baton 

MW 


Lo+r 


Hob 

. teat 

» nmeml Exmacmiriq 

25B5J5 

-04 260722 260X23 268016 218090 

350 

452 

2777 3758 108158 

273044 

13« 

343096 

31/3 

273044 

13/5/94 

awn jd 

19086 

12 Extodferi MuHtaW- 

371092 

-19 375009 377L34 37823 303080 

357 

5.44 

2107 4139 

101453 

4W7J5 

20 

371092 

3* 

410756 

32/54 

190000 31/12/85 

15 0M.MvataSg) 

255279 

-02 255728 254528 253035 211220 

351 

444 

2078 4043 103554 

289X20 

10/5 

zwase 

3C/3 

269X20 

105/94 

96190 

2V288 

IB 08 PritaWm iPredni) 

TI8M5 

—77 199200 190326 1921.10 *93990 

350 

153 8D50f 1552 107154 

209943 

27/4 

176440 

3U3 

30(410 

8/8/90 

06060 

Tames 

28 oai «uw»owiao(2Bq 

198039 

403 W73J7 195038 1S7S.72 177470 

3.79 

449 

2777 2457 

89419 

wan 

20 

190650 

!« 

>w>ia 

300* 

9HJ0 

1471/86 

71 tttidrig & Conwwknpi) 

120228 

-0L5 120041 720095 1221.84 106020 

3.11 

405 

3158 15.18 

93160 

156010 

BO 

tteP+B 

3K 

212550 

IB/7/87 

53030 

9W82 

22 BuCdn^lMto 3 Uvrtapi) 

189006 

-04 190548 1871.75 1901.13 169050 

STB 

190 

3254 2079 

B84A4 

231X22 

24/1 

167X75 

IX 

239322 

2C1S4 

95460 

aWB2 

23 Catiriobp) . 

2445.13 

-0.1 244790 2420.70 2437.43 210790 

179 

196 

3X59 2039 W6570 

256223 

27/4 

229084 

s n 


27/CW 

97950 

14/1/86 

34 DtaftitW kdwtMdWI 

201095 

+19 190999 196273 198014 184120 

453 

457 

27.17 3045 101083 

223157 

20 

19*273 

1* 

223X57 

20 m 

06400 

21/1/86 

25 aacMdc s Bed BjoW343 

1S83W 

+417" 187085 796399 2D17J1 197060 

370 

SJO 

1478 1190 

95350 

226358 

40 

166359 

VS 

2263.36 

W3* 

90080 

298*8 

26 tegtoaariw(7T) 

182378 

182151 181 L57 183057 1S1970 

259 

454 

3049 2011 

103073 

2011.17 

20 

180257 

Cl 

2B11.T7 

2/2/84 

9B250 ion 1/87 

27 tegtaadio vantMOb 

222022 

-02 223X64 224122 223SJH 175010 

458 

132 

9177 3142 

106045 

281071 

20 

212522 

4n 

251071 

208* 

995.00 

14/1*8 

28 Prtrica, Pte» S Pdqj(271 

273029 

-05 27S5J91 272056 273150 233240 

354 

028 

2147 2945 106481 

304551 

18/3 

2B2149 

Cl 

304S51 

18/3/94 

97350 

VC1/86 

29 teak* o Heevm 

1723J5 

172359 771957 173087 180050 

457 

552 

2115 2005 

96028 

202496 

4/2 

17MLW 

vs 

1IWM 

2/10457 

HOLM 

249/90 

3Q cokwoi soopsgq 

262037 

+0.4 261350 2574.14 260454 2652.70 

448 

751 

1490 4440 

88058 

304076 

24/1 

257414 

1/6 

306000 2X1280 

9B75D 

14/1*8 

31 KBMtasfl/) 

220137 

+03 219447 215000 216X89 1915.00 

458 

757 

1001 1353 

98659 

24B452 

19/1 

21*50 

1/B 

246452 

19/1/94 

96200 

14/1*6 

32 Sftta. rnna * Cktapo) 

2BB1JB 

+04 2878.10 28SL04 289521 270010 

353 

658 

1750 41.70 

95015 

(w 

24/1 

286004 

VE 

346750 

11A52 

96750 

14/1*6 

33 FaW MMtataamPQ 

219924 

-05 2202.77 218755 221091 220150 

453 

018 

1425 4275 

81452 

280064 

19/1 

218756 

VS 

260054 

isn/M 

04O1B 

1C1*8 

34 HoutaWB EooUtil^ 

240095 

-02 2472.10 24054 247453 223550 

356 

745 

10.13 4074 

87095 289414 

18/2 246554 

1* 

296414 

la/zra* 

927.10 

21/1/88 

36 Harib CmGCB 

1B&4.41 

+05 167076 1065.16 166050 MB75D 

351 

174 

2072 1000 

90072 

toooia 

19/1 

IfltOSD 

31/5 

204740 

28*87 

97180 

2W*6 

37 dtennacaWateCig * 

280094 

+0.4 268357 264X70 2670.15 300250 

475 

015 

1413 47.15 

84257 

32(723 

18/1 

2641 JO 

1/B 

418090 

14/1/92 

96X70 

13/1/® 

86 TetaocKT) 

35B05B 

+15 S15J03 3372.41 3431.14 36S050 

550 

954 

115610255 

79457 

47185B 

7/1 

337241 

VS 

<73852 29/12/93 

98250 

9/1*6 

40 sawcespaii : 

193006 

+05 183159 180XS0 192359 178350 

112 

051 

1153 1040 


2207.77 

19/1 

190150 

VS 

2207 J7 

iarv94 

94498 

23/1*6 

41 0WBDtn(3I) 

281154 

-0.1 281656 279034 282756 259450 

112 

556 

1183 3405 

96433 

331033 

2/2 

279034 

1/B 

»133 

208* 

96850 

21/1*8 

42 LetemOHoMa(29 

2094J38 

+04 208750 2091.11 207138 177040 

1 « 

4S6 

248 1842 

101110 

236052 

17/2 

298X11 

VS 

238052 

17/254 

97340 

21/1*8 

43 UM439) 

286008 

+02 296050 291750 293095 234060 

118 

456 

2351 3453 102251 

3349111 

17/2 

291750 

W 

334011 

1708* 

97020 

9/1*6 

m nwwato Rnd(i7) ; 

W22J 

+07 136067 153003 154055 1852.40 

454 

950 

1184 1372 

92X89 

191420 

IB/1 

15TLS4 

25/4 


28/1/33 

91746 

21/1*6 

45 DMWenL Gwaw(44J 

165475 

+02 1BX20 162151 T65C2D 147460 

356 

057 

1850 11.14 

87H0O 

191067 

4/1 

182151 

VS 

193424 2W12IS3 

87010 

902*8 

48 SRiport ftirigta*!) 

1588.55 

-02 160257 1377 JO 158041 149040 

252 

072 

2024 ISO 

30X33 

136843 

20 

W77JB 

VB 

T8BB43 

208* 

93956 

1/2/91 

40 na<w«n« - ■ 

233X54 

+15 230035 227556 229959 208950 

154 

461 

2452 15.14 

90027 

ZB06JB 

30 

228448 

27/5 

290558 

308* 

96000 

14/1*6 

51 Oftirsineall BwtaaapCO 

119222 

119258 119089 119471 122750 

448 

129 60501 051 

100064 

138031 

10/2 

113062 

21/4 

246030 

1SF7«7 

9B3J0 

14/1*6 



60 HOUIBOti 
63 EhtataKIT) 

84 teOtttaAHCO 
» 

68 WritiflS 


21T&07 402 217035.213804 2175.16 806130 

2072.ES 2S722B 205837 209864 171870 

174332 -86 175430 173852 178706 190400 
194330 +89 192884 188*06 192331 T9432D 
171738 -05 172548 168635 168202 168500 


*Tt 800 M.16 1433 61736 

4,12 IMS 1034 1535 637-07 281512 

537 * t 5543 79604 2*577 

423 801 1121 009 608.44 26042 

547 1514 7.71 548 K&24 212571 


20 713504 
2 « 2*1438 
7/1 113232 
VI 1 86408 
3* 181501 


1/6 Z78Z33 2AB4 
VS 281512 2/2/94 

1* 2S7530 IB/1 2/93 
1/B 246U0 29/12/93 
VS 212538 30/3* 


80230 3/1 006 
771/91 

a raw 

60230 3/1IW6 
8MJD 1/5S0 


99 tm mUKUOM* 


163102 +53 162731 1B07J5 162565 151930 590 629 1926 1525 113599 187536 20. WBT35 1/B 167838 jBW 6549 19/1274 


70 HHMEMUpte 

71 8*MH) 

73 tanMOh 

74 Lite to mt om 

75 IfcrdMBniaft 

77 Oteer- H— el ri pQ 
79 Rw*em - 


212516 

273421 

1294.99 

226533 

290552 

179209 

136049 


+10 210504 
+1.7 288980 
+54 122577 
+1.1 229839 
+02 279781 
+02 178568 
+13 154005 


206462- 

284531 

118530 

218081 

2787.03 

179575 

152747 


208490 

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Kingfisher 

overhang 

concern 

The stories circulating around 
Kingfisher refused to die down 
yesterday as the market con- 
tinned to fret over the poten- 
tial impact of an acute stock 
overhang. More than 20m 
shares, used as part payment 
to Darty shareholders a year 
ago when iringfishAr bought 
the French, electrical retailer, 
can now be sold under of 
the deal 

The French shareholders, a 
mixture of institutions, fondly 
interests and Darty manage- 
ment. are thought to have been 
approached by a number of UK 
brokers, iwwn to iwnrffo such a 
potentially large order. 

According to market 
rumours, one international 
securities h m wp whfoh lum aw. 
ceeded in purchasing a large 
tranche of Kingfishe r shares - 
some say around 5m - has 
already hnu ght up all the stock 
tending focDitieS in inngfifiliw 
stock for the next month. 

If true, and the share price 
woe to rise, this could have 
the effect of driving up the 
Kingfisher share price higher 
as other brokers were forced to 
buy shares in the open market 
to cover positions instead of 
tu rning tO stock lending insti- 
tutions - and give the original 
broker a handsome profit on 
the price paid for the shares. 

Upset by the Darty specula- 
tion and undermined by a cau- 
tious agm sta te ment on Tues- 
day, Kingfisher shares finished 
a miserable week a net 33 
down, but a penny better yes- 
terday at 516p. 

Lasmo speculation 
With no signs of the emer- 
gence of a much-hoped for 
counter bidder for Lasmo, 
many short-term speculators 
were said by dealers to have 
sold their Lasmo shares 
although many others had paid 
a premium to marketmakere in 
order to roll over holding into 
the new account 
-There are no signs of a 
third party as yet and the hot 
money is beginning to flow out 
of Lasmo," said one marketma- 
ker. Lasmo shares closed 2 
easier at 142p. The implied 


NEW HIGHS AND 

LOWS FOR 1994 

NBVMOKSm. 

Dta T Wfl UTOftS « Conk pq. Fri» ft+rt. 
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fl) MVESTHBfT COWANE3 M OIL 
EXPLORATION 4 PROO K) Bow today, Be Co. 
LoKrititi. WcC rvnltiin, HriBI HET3ULHW. 

I tO OtiflQft. SUPPORT BERVSCa 
hb Focua. /ueacMta to 
SOUTH AHtiCANB tO 
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nrniiri' — nnnui 6rmnf~~— ~T 
(1) PUete^ FOOD UANUF (SJ Assoc. Brit 
Food* Dm WL Gfa DBimu/ION fl) 

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OIL EXPLORATION 6 PROD ffj Entapta*. 

on«n iteWictAL m pmnuAceunc/iu 

H CWwanw. Htiteatf Mpiwl a fttiaa 
ttil. puma. IMPPI ft PACXQ a Jtevte Porter. 

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RETALSta, Q8BML (B) AJomjn, Cotas Myar, 
Cnata. Dbom. Hb|Fmb(T 4. lOngariiar. Uoytfa 
Chontfats 7J<> Pit, Uontfoa (JL SUPPORT 
flaws n Borttad tori, ernteb, Datia Servtoa. 
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APPAHH- (fl tjtia &. ftetilmt. SffT. 
■tawoed. TOWBPORT (D Urited Carina. 


value of the bid is now 19 per 
cent below the original value 
of the offer from Enterprise 
Off. 

Adding to the discomfort of 
Lasmo speculators holding on 
for either a counter offer or 
increased terms from Enter- 
prise OQ was annthpr slide in 
the latter’s shares which 
dropped 11 more to 382p. Enter- 
prise have fallen sharply siw* 
they launched the hid for 
Lasmo and were additionally 
weakened yesterday by a “sen” 
note from Nomura, the Japa- 
nese-owned stockbroker. 

Mr Steve Turner at Nomura 
said Enterprise’s current offer 
is “unlikely to succeed tmlpgg 
it is sweetened by an element 
of cash." 

He added "In the event that 
Enterprise is successful it is 
likely to involve significant 
indigestion as the new shares 
hit the market and would 
dilute earnings. ” 

A number of the big US 


investment banks were said to 
have been aggressive buyers of 
ftp UK haniw on the basis that 
the sector has been oversold 
this year. 

The heaviest action in the 
sector was via a big switching 
operation, said to have been 
carried out by (me of the US 
investment banks, invo lving 
Abbey National and TSB, with 
the la tter on the sell end of the 
deal TSB shares have under- 
performed the rest of the banks 
since reaching a peak 289p at 
the And of Januar y this year. 
At the close TSB were 5 
weaker at 203%p after turnover 
of 8.6m shares, while Abbey 
were always in demand and 
settled 6 up at 416p with 49m 
shares traded. 

Smith New Court slipped 2 to 
352p but were buoyant earlier 
in the week as dealers picked 
up hints of bumper prelimi- 
nary profits later this month. 
There were also stories that 
the securities house wifi move 
into the market after its 
results to buy in its own shares 
in order to pay expected big 
bonuses to its staff in shares. 

Commercial Union was the 
centre of attention in compos- 
ites with the shares unsettled 
by the reemergence of stories 
that the group could be consid- 
ering a bid for Group Victoire, 
part of the Suez group of com- 
panies in France. Dealers said 
rumours of a CU bid for Vic- 
toire had « v i mpfateri in the mar- 
ket several timw during the 
past year and were generally 
sceptical of the story. CU 
shares settled 3 off at 532p. 

Other composites continued 
to respond to the recent spate 

of buy r acnTnmanrifltinns. Gen- 
eral Accident rose 9 to 587p 
and Royals 6 to 265p. 

The recovery in Eurotunnel 
was again evident, with the 
fully-paid shares surging 27 to 
363p. The shares were the sec- 
ond worst performers in the 
mid-cap 250 in May. The new 
nil-paid shares, which started 
trading on Thursday, rose 17 to 

60p. 

Alfred McAlpine new nil- 
paids opened at 28p premium 
but qufokly fell away, eventu- 
ally closing at 16 p premium 
with the McAlpine family 
interests rumoured to have 
sold their entitlement, some 
23m shares. McAlpine “old" 
ended the session at 219p ex- 
rights. 

Barcom shares more than 
halved, closing 30 down at 24p 


■ CHIEF PRICE CHANGES 


YESTERDAY 

London (Ponca) 
Rises 

Amersham Inti 

937 

+ 

19 

Dale Elect 

71 

+ 

4 

Euro Disney 

388 

+ 

21 

Eurotunnel 

383 

+ 

27 

Graggs 

918 

+ 

38 

Land Secs 

656 

+ 

16 

Redstone 

128 

+ 

10 

Fails 

Acorn Comp 

76 

- 

14 

Barcom 

24 

- 

30 

Borland 

650 

- 

50 

Chime Comma 

36 

- 

12 

Chubb 

356 

- 

11 

Harrington K 

68 

- 

66 

Monarch Res 

229 

— 

9 

Shoprite 

82 

- 

9 

VSEL 

910 

— 

18 

Wellcome 

543 

- 

13 

Yorks Water 

487% 

- 

14% 

after the interim loss. 




Wellcome, the pharmaceuti- 
cals group, dropped 13 to 543p, 
after 539p, following the 
finance director’s resign at i on . 

Granada remained weak as 
worries continued over the 
group’s acquisition ambitions. 
The shares fell 8 to 494p. The 
company declared its interest 
in taking control of Yorkshire- 
Tyne Tees at its results this 
week. The latter’s shares were 
again subject to strong buying 
interest, closing 9 ahead at 
309p. 

In a strong property sector, 
Great Portland improved 4 to 
200p after announcing a £58.5m 
deaL 

A rise of 1 % in Cadbury 
Schweppes to 456 %p was 
helped by a buy note from 
Strauss Tumbufi. 

The astonishing bun ran by 
food retailer Greggs continued, 
with the shares gaining a An- 
ther 38 yesterday to 918p. Since 
acquiring the Bakers Oven 
chain from Associated British 
Foods just over a week ago, the 
shares have risen 15 per cent 

Dealers reported stock on 
offer in Shoprite and the 
shares slid 9 to 82p. The stock 
has remained friendless since a 
profits warning a week ago. 

There was another leap for- 
ward in Euro Disney following 
the news earlier this week that 
a Saudi Arabian prince is to 
buy a stake of up to 25 per cent 
in the theme park operator. 
The shares jumped 21 to 886 p. 

A positive recommendation 
from SG Warburg was said to 
have helped Scottish and New- 
castle, up 6 at 5l6p. 




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Telfinom Market/? 


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iONANCJAL TIMES WEEKEND JUNE 4/JUKE 5 1994 


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WORLD STOCK MARKETS 





ive following jobs data 


Wall Street 


Bonds- took equities an a roller- 


after the release of au ambigu- 
003 set of data on May employ- 
ment conditions, writes Frank 
McCarty in New York. 

By 1pm, the Dow Jones 
Industrial Average was 8.30 
higher at 3,767.29, while the 
mare broadly based Standard 
& Poor’s 500 was up 2.70 at 
4SRB5. Volume on the NYSE 
was a moderate 160m shares. 

In the secondary markets, 
the American BE composite 

was 092 better at 44L45, and 

the Nasdaq composite added 
3J27 to 742.68. 

The labor department’s 
report on employment- condi- 
tions last month defied easy 
interpretation, as did the sub- 
sequent reaction of the finan- 
cial w iflrfcftfar 

EUROPE 


The headline figure was 
favourable for investors 
looking for signs of a cooling 
economy and. evidence that 
could ■ delay the Federal 
Reserve’s next move to tighten 
interest rates. 

But there was bad news, too. 
The initial estimates of March 
and April payrolls were revised 
upwards, leaving the gain over 
the three months a tittle stron- 
• ger than expected. 

More troubling, the unem- 
ployment rate showed a sur- 
prising drop to 6 D per cent, 
from 6.4 per cent the previous 
month. The &0 per cent level 
was is cited by many econo- 
mists as the effective rate of 
“foil employment”. 

Initially, longer-dated bands 
jumped on the payroll data, 
but quickly reversed direction 
as t rader s digested the rest of 
the report By the time equities 
started trading the- long bond 


was moderately lower, and the 
Dow fen 15 patata. 

However, there were more 
surp rises: within minutes of 
the NYSE’s opening, the long 
bond began to rally, climbing 
nearly three-quarters of a per- 
centage point by midday. 

Nevertheless, stocks took the 
bait, shifting direction and 
pushing securely into positive 
ground. Bat the movement 
failed to qualify as a rally, with 
most share prices showing 
only modest improvement 

A ail gb* fler-lfap. m manufac- 
turing employment, against 
expectations of an advance, 
was tempering the positive 
reaction to the upturn in 
bonds, especially among the 
blue chips. 

Dow industrials lagged 
behind other iwHc es tor most 
of the morning, held bat* by 
General Motors which sank 
31% to 362% In brisk trading 


after the car maker announced 
that it would convert an issue 
of preferred stock into common 
share. International Business 
off $i at 361, was a 
second drag an the Dow. 

Offsetting the declines, 3M 
added $1 to 351% and Sears put 
on 31 to 35L 

Bausch &Lomb plunged 38%, 
or nearly 20 per cent, to 341%. 
The company, a supplier of 
optical products, slashed its 
estimates of 1994 revenues and 

net TnremiP- 

Canada 

Toronto stocks eased in moder- 
ate midday trade as precious 

metals and transportation 

issues 

The gold and silver index 
was down 2 p e r cent at 9,855.61 
while the TSE 300 composite 
index was off 1427 at 4JH&31 
to volume of 26J5m shares val- 


ued at C$34L6m. 

Brazil 


Equities in Sdo Paulo were 7.2 
per cent firmer by midsession 
as investors reacted positively 
to further announcements 
regarding the Introduction of 
the new currency next month. 

The Bovespa index was up 
1,821 at 27,066 fry 1pm in turn- 
over of Cr243bn. 

The government said that 
the new currency would have a 
one-to-one parity against the 
US dollar for an “unspecified 
period”, optimism over a possi- 
ble fall in the country’s 45 per 
cent monthly inflation rate 

after the introduction of the 

new currency cm July l was 
also a support. 

Telefaras was up 6.1 per cent 
at CrTS.lD and Vale do Rio 
Doce, the mining group, up &9 
per cent at 06080. 


Springtime in Paris 
sees no sign of renewal 

Equities are languishing, writes Alice Rawsthorn 


Mood change for bourses ahead of US data 


A bigger than expected fall to 
US unemployment was one of 
the prospects which European 
markets feared most earlier 
this week. But when it hap- 
pened, the bourses had 
changed fibeir mood, writes Our 
Markets Staff. 

US establishment figures did 
their best to rabii any fears 
that mig ht have been- raised, 
saying that inflation fears were 
exaggerated. However, opinion 
in Europe had been moving 
that way by mid-week, and yes- 
terday’s reaction merely con- 
solidated an already rising 

fn ft pritfe g. 

FRANKFURT came back 
refreshed from a day’s leave, 
with the. Dax index 1&69 better 
at 2.14&S9, 34.77 ahead of 
Wednesday's depressed post 
bourse dose. -This left It 03 per 
cent op higher on the week but 
the Ibis -indicated Dax made 
another 10:49 to end the after . 
noon at 245848. 

Klein wort Benson said on 
Wednesday that a panic to the 
bond market had put equity 
prices tqfhe test mid pushed 
them down towards the bottom 
of theirreceht trading range. - 

But, said the Gennm team, . 
led by Mr- Andrew Thomson 
and Mr Adrian Phillips, *with 1 
the economy; turning and the 

ASIA PACIFIC 


FT-SE .Actuaries Share 


June 

Hm* 


Open 1030 lljo 1ZW 


THE EUROPEAN SERIES 

U00 1400 T&OS Clan 


FT-SE BMfeac* 100 
FT-SE Barotra* 200 


139151 189925 139171 140324 140145 1402.10 140202 140130 
141203 105.73 141532 141186 141038 141063 141437 1417.18 




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FT-SE Bnftmck 100 139026 138827 189173 140419 1411.48 

FT-SE Eoniks* 200 140827 1398L53 1409J0 141433 142007 

bm wo ftsnvst; in - 140047 ; am - toub lmm* wo - uaui m - mimb 


bullish expectations for equity 
earnings looking daily more 
r ealisti c, we see little further 
downside in prices. 

Trading remained thin fol- 
lowing Thursday’s holiday. 
There were outstanding pock- 
ets of strength to financials , 
where Allianz rose DM88 to 
DM2,452, and in engineering 
where Linde, frequently 
bypassed in favour of more 
lightly-priced stocks, jumped 
DM25, or 245 per cent to DM925. 
MAN rose DM7 to DM420.50, 
and Mannesmam by DM9.50, 
or 2 J 2 per cent to DM43&50. 

On a thin day for corporate 
news, the construction group, 
Bilfinger ft Berger, climbed 
DM13 to DM779 ahead of next 
week's results. 

AMSTERDAM was lifted 
through buying of financial 
stocks, with ABN" Amro and 
ING both rising FL 1.50 to 


FI 62.40 and FI 77.60 respec- 
tively, as the AEX index put an 
&29 to 40343, barely changed 
on the week. 

Unilever advanced GO cents 
to F119L7Q on news that the 
Anglo-Dutch consumer prod- 
ucts group was to drop two 
court cases against Proc- 
ter ft Gamble. The dispute had 
arisen between the two compa- 
nies regarding a new deter- 
gent 

MW AN remained quiet as it 
has done for the past couple of 
sessions. Volume, apparently, 
was lower than average. 

The Comit index closed up 
L44 at 736^6 for a 0.8 per cent 
rise on the week. 

Paribas Capital Markets 
downgraded the market from 
overweight to underweight rel- 
ative to the rest of Europe. In 
explanation the broker said 
that while it remained positive 


on the country’s prospects, 
most of the good news had 
already been factored into 
equities. 

“Italian equities c arr y higher 
risk, since to recent months 
high levels of fund flows have 
been the main factor during 
the market, ” it said. 

Montedison was one of the 
day’s features, up L32 at LI .429 
on reports that the European 
Commission would approve its 
Joint plastics venture with 
Royal Dutch/ShelL 

ZURICH could offer itself 
two explanations as the SMT 
index eased to register a mere 
25 gain at 2,728.4, up 0.6 per 
cent an the week, after a day's 
high 12 points higher. 

The conventional one was 
that Swiss investors took a less 

sangrrinw view Of US data and 
interest rate prospects than 
their neighbours. The other 
was the possibility of a hidden 
agenda to Roche, regarded as 
aggressively oversold in some 
quarters earlier this week but 
still seeing its certificates fell 
another SFr80 to SFr6,710 as 
other Swiss blue chips mostly 
gained a point or two. 

MAPUTO'S general index 
ended 2J3 up at 326.29, but L4 
per cent down an the week fol- 
lowing a late recovery as Wall 


Street weathered the US data. 
Telefonica, a front line ADR 
stock, ended PtaSO better at 
PtaL885, accounting for a quar- 
ter of yesterday's Pta32.8bn 
ma rket tu rnover. 

ATHENS fell slightly but a 
more optimistic tone had 
returned to trading, brokers 
reported, as turmoil to the cur- 
rency markets began to sub- 
side. 

The general index slipped 
1.86 to to 86&50 but remained 
1.5 per cent firmer on the 
week. 

ISTANBUL gained 2.1 per 
cent on buying interest which 
was mostly concentrated upon 
state-companies, the composite 
farienr Aniting 32468 hl ghiw at 
16,0721)0 for a 1.6 per cent rise 
on the week. 

Written and Mfited by William 
Cochrane and John PBt 


SOUTH AFRICA 

Johannesburg ended the week 
generally firmer to line with 
improved domestic sentiment 
and demand for bine chips. 
The overall index added 27 to 
5,500, industrials 14 to 6^78 
and gold 18 to 13 S 8 . De Beers 
rose Rl.25 to RU0.25 and 
Anglos 25 cents to R224.75. 


T here are times when 
equity markets seem to 
move without rhyme or 
reason and, at first gfanr», that 
certainly seems to have been 
the case for the Paris stock 
market this spring. 

The economic data emana- 
ting from the French govern- 
ment’s army of highly trained 
statisticians has been getting 
better ami better over the past 
few weeks. Even the more cyn- 
ical of economic commentators 
have been forced to admit that 
France now shows every sign 
of hauling itself out of reces- 
sion and have adjus ted their 
forecasts accordingly. 

Yet the CAC 40 index, has 
fallen steadily since its historic 
peak of 2^60 JS cm February 2, 
to dip down below the 2JW0 
mark last Wednesday. The 
index rallied on Thursday, 
closing above 2,000, and yester- 
day finished at 2.041, little 
changed on the week. 

“It’s clear that the French 
economic outlook has 
improved considerably over 
the past few months," says Mr 
Jean-Franpois Mercier, rfiief 
French economist at Salomon 
Brothers. 

“Unemployment is still high, 
but Hmri prfH improved fas- 
ter than tpa wpirfwi and infla- 
tionary fears have receded. So 
why is the stock market doing 
so badly?” 

The quick answer is that 
investors' attitudes over the 
past few months have been 
influenced less by the pros- 
pects of the French economy 
and of the CAC-40 stocks them- 
selves, than by continued con- 
cern about the outlook fin* US 
interest rates and for German 
money supply. 

Some analysts also suspect 
that the market has fallen prey 
to a widespread re-rating of 
equities, reflecting the weak- 
ness of the bond market and 
instability of global sentiment 
since the February increase to 
US interest rates. 

“There has been a general 
re-rating, equities have fallen 
to much more realistic levels 
and French stocks are now 
fairly cheap,” says David Har- 
rington, French market analyst 
at James Capel in Paris. “But 
the band market is so weak 
that bond yields are stifl very 


attractive compared with equi- 
ties." 

In the meantime the funda- 
mentals of the market have 
been Improving. The economy 
is still in a fairly fragile state. 
Unemployment rose to yet 
another record level in April of 
333m, or 12L3 per cent of the 
workforce, and consumer 
spending is still erratic. This 
spring has seen an encourag- 
ing in sales of manu- 

factured goods, notably cars 
which have benefited from spe- 

Fiance ; 

ctcwiodaK . 



Afiao * j m‘ ■ *■!£!? 
•Start**! fTOraphna- 


4nt 


dal government incentives, 
ajtbmig fa expenditure on other 
items has remained sin g gish. 

However, the corporate sec- 
tor has shown a sharp 
rebound. The latest surveys 
conducted by Insee, the state 
statistics institute, and the 
Bank of France have shown 
significant increases in busi- 
ness confidence which have 
already filtered through to 
increased production to manu- 
facturing, particularly for 
intermediate and capital goods. 

This increase seems set to 
continue during the course of 
1994 and to accelerate in 1995. 
French companies cut back 
sharply on investment last 
year and also T am down their 
stocks to very low levels. This 
maann that any increase in 
demand should have an imme- 
diate effect on production. 

The convalescence of the 
French economy has turned 
out to be more rapid than 
expected," says Ms Patricia 
Lormean, an economist at Pari- 
bas in Paris. “Attention is now 
focusing on the degree of vig- 
our which can be expected of 


growth to 1895.” 

Other observers agree. Insee 
last month raised its growth 
forecast for the first half of 
1991 to 09 per emit from 0.7 per 
cent. Salomon’s Mr Mercier 
has revised his forecast to L5 
per cent in 1994 and 2L5 per 
cent in 1995. "Until recently 
there was a lot of scepticism 
about the French recovery,” he 
says. “But now we've seen 
enough positive economic data 
to be convinced." 

The recent round of state- 
ments from company chairmen 
has been more upbeat too. Mr 
Andre Levy-Lang, chairman of 
the Parihas banking group, last 
week confirmed that it was on 
course for an increase in prof- 
its this year. A few days later 
FNAC, one of France's largest 
retailers, announced that it 
had begun its recovery with a 
return to interim profits 
growth. 

Even Euro Disney, the 
stricken leisure group which 
h as se en its shares plummet 
during months of negotiations 
over a FFriSbn rescue package 
with, its banks, gave investors 
a welcome piece of good news 
on Wednesday with the 
announcement that Prince Al- 
Waleed, a member of the Saudi 
royal family, plans to buy up 
to 245 per cent of its equity 
following a pending FFr6bn 
rights issue. 

There was no such luck for 
Schneider, the electrical engi- 
neering group, which started 
the week with the news that 
Mr Dicker Pineau-Valendenne, 
its chairman, was being held in 
custody In Belgium pending 
investigations into fraud alle- 
gations. 

F or other companies the 
critical question is when 
France's improved eco- 
nomic performance will be 
reflected in equities. James 
Capel anticipates a healthy 
increase of 48 per cent fin- the 
CAC-40 companies' earnings in 
1994 - ending four successive 
years of decline - followed by 
38 per cent growth in 1995. 

"In theory this is a great 
time for investment in French 
equities," says Mr Harrington. 
The mar ket should have bot- 
tomed out. But who knows 
when the rally will start?" 


Late rally leaves slight decline in Nikkei 


LONDON EQUITIES 


UFFE EQUITY OPTIONS 


RISES AND FALLS 


Tokyo 


Tokyo, stocks fell moderately, 
but a late afternoon rally 
wiped out much 0 ? the. losses 
and left the market in a posi- 
tive frame:- of mind : far the 
weekend, writes Robert Patton 
in Tokyo- 

The Nikkei 225, after a weak 
opening,- continued Thursday’s 
downward- correction. While 
overseas Investors, began buy- 
ing at the opening, domestic 
institutions took profits fay sell- 
ing on rallies. The market 
reached an intraday low of 
20,802.46 to. the afternoon, then 
rallied in the fina l half hour of 
trading to' close st the day’s 
high of 20*54.19, down 5481 
points. Foreign purchases, 
which had powered the market 
through, much of its week-long 
rise, were not sufficient, trad- 
ers said, to overcome institu- 
tional «t>THn'g ami profit-taking. 

Volume 7 was estimated at 
380m shares, well below the 
levels maintained through the 
previous live trading days. The 
capital weighted 300 index 
closed at 306.80, down 0J9, 
while the Topix mdex of first 
section stocks (dosed 10.04 
lower at 1,679.62. to London the 


ESE/N&tai 50 index rose 0A5 to 
128637. - 

Mr Keith Donaldson, an 
equity strategist at Salomon 
Bros in Tokyo, admitted that 
“the week's run-up was more 
rapid than we expected.” But 
he was encouraged by yester- 
day's tight volume . Failing 
prices' on high volume could 
have -indicated panic selling 
over the nuclear stalemate 
with North Korea. 

Losers led winners by 681 to 
307 with 189 unchanged. Steel- 
makers attracted profit taking. 
Kawasaki Steel, the day's vol- 
ume leader, lost YU to Y408 as 
115m shares changed hands. 

. Hitachi, which had 
announced plans to sell low 
cost products outside of its nor 
mal channels und er different 
brand names, rose Yio to dose 
at Y1090 in heavy volume of 
5 -6m shares. Oki Electric, 
which had projected higher 
profits for the current year, 
gained Y9 to close at YB90 on a 
volume Of shares. 

to Osaka the OSE average 
fen 187.94 to 23^00.12 in vol- 
uroe of 3L3m shares. 

Roundup 

The region had a better day, to 


aggregate, after a mostly 
unprofitable week. 

BOMBAY jumped 3.3 per 
cent on a technicality which 
encouraged speculative buy- 
ing. Leading companies 
announced annual book clo- 
sures for dividend payments, 
which meant that the delivery 
period for stock would be 
extended to a month, giving 
the speculators time to play 
the market 

The BSE 30-share index 
closed 12953 higher at 4JK&23, 
over the 4,000 mark for the 
first time since February 28, 
when India announced its 
national budget for 1994/95. 
Depressed since then by the 
ban on carry-forward trading; 
equities revived only this 
week, following reports that 
the monsoon would be normal 
and a string of good corporate 
results. The rise on the week 
was 7 per cent 

TAIPEI rose LI per cent in 
active trading, the paper, 
ftnanrinis and plastics sectors 
attracting buyers as the 
weighted index ended 67.07 
higher at 6,023.68, 3.7 per cent 
higher out the wed in turnover 

of T$7L52bn. 

SINGAPORE saw last min- 
ute buying which left the 


Str aits Times Industrial fader 
16 l 32 higher at 2268.70, off a 
day’s low of 2^3L79 but 2.4 per 
cent down on the week. Inves- 
tors focused mainly on Malay- 
sian shares after then* recent 
losses. 

KUALA LUMPUR moved to 
much the same way, late bar- 
gain hunting taking the ELSE 
composite index up 10.05 to 
965.49, down 35 per cent on the 
week but apparently resilient 
at the 950 leveL 

SEOUL’S selective advances 
to construction, financial 3nd 
some faiwmwm i nninflti ops com- 
panies offset concerns about 
the North Korean, nuclear 
problem and the composite 
index rose 5.00 to 942.43, off 1.2 
per cent on the week. 

HONG KONG ended little 
changed, wary ahead of this 
month’s government plans to 
cool residential property 
prices, and the Hang Seng 
index finished 1L93 higher at 
9£&27. a week's fan of 25 per 
cent 

BANGKOK featured late bar- 
gain hunting in banking and 
finance, gains in both sectors 
after early losses Smiting the 
decline in the SET index to 0,92 
on the day at L358.00, down L8 
per cent on the week. 


□ptfoa 


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M W Jan Jb Od JM 


Option 


— Cafe Pub — 

MV tfear M flop Nor M 


MtaUpm 540 43*55% 

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1 FT-ACTUARIES WORLD 

INDICES 












I 

Joirtriy composer try Tte RnataJ Ttaee Ua, Goldman, Secha X Co. and NaMVett Secudttae Lid. ta conjunction with Die Irattata o< Actuadee aid the Faculty at Actuaries 

NATIONAL AND 

















Roam In pmothans 

US 

OesTt 




Local 

Local 

Gross 

US 

Pound 



Local 




show number cri tiw * 

Oder 

Change 

Sawtag 

Yen 

CM 

Curancy 

% cha 

CKi. 

DoBar 

Storing 

Yen 

CM Cmwcy S2 week 52 wee* 

ago 

Of stock 

Index 

% 

tndBR 

Index 

Index 

Index 

on day 

Yield 

Index 

Index 

Index 

Index 

Index 

Hflh 

Lmr 

WM 

AustraKa (MO 

— 17486 

-1J 

17121 

115.85 

14096 

15731 

-1.1 

3.49 

177JB 

17344 

117.26 

161 M 

159.18 

189.15 

13019 

13532 


173.18 

OjO 

10078 

114B7 

14070 

14731 

ao 

1.10 

173.19 

168126 

11457 

14752 

14731 

19141 

14230 

14533 

Botfikan (39) 

-188.00 

QJQ 

16627 

111.83 

14476 

14132 

03 

190 

161S6 

16483 

111J57 

144S5 

14QJ7Q 

17637 

14132 

144.61 

Canada f>09^4_ 

13022 

ai 

127JSS 

8837 

11130 

13057 

-ai 

2.60 

13014 

127.18 

8109 

111.15 

130.66 

14531 

12146 

12734 


— Z4&21 

-03 

24322 

16463 

21011 

21839 

ai 

195 

24199 

24394 

16471 

21258 

21838 

27179 

20738 

21142 

FHandCS 

145,41 

as 

14225 

9132 

12438 

16838 

08 


14495 

141X6 

9149 

12129 

15133 

156.72 

8154 

9424 


1B8JST 

a7 

10025 

109.78 

142.11 

14041 

1.1 

aoe 

16431 

16058 

10169 

14033 

14478 

18537 

14060 

15146 


136JH 

-OJ5 

13421 

• 9081 

1173S 

11738 

ao 

1.78 

137.63 

13451 

81 JM 

11756 

11735 

14737 

10739 

11134 

Hong Hong (56) 

S77.37 

-ai 

360W 

25031 

32402 

37436 

-11 

085 

38043 

38060 

257.61 

33261 

388 2S 

506.53 

27142 

29737 


181.31 

-as 

177.74 

12026 

15538 

173.03 

-03 

391 

18293 

17020 

12082 

155.73 

173.60 

209.33 

15533 

18112 

Urtypri: . 

8705 

-as 

■ 8523 

57J4 

74J4 

16335 

-02 

1.52 

87J5Q 

flSBi> 

57.65 

7473 

10436 

97.78 

5738 

7050 

Igua IrtlB 

161.48 

-06 

.15850 

107.11 

mm 

107.11 

-04 

072 

1BOBO 

15082 

107.49 

13B.7B 

107 A3 

16831 

12454 

15037 

MUavEta (83) mOO 

-02 

435.15 

29443 

38114 

44133 


1.82 

45139 

44100 

30123 

391.51 

45525 

621.63 

31231 

34633 

Mexico (18) 

„ S097.74 

-00 205038 

139138 

180110 

7B2O10 

-13 

1.02 

2141^8 

2092.08 

141145 

162178 

777238 

264738 

1431.17 

148166 


_ ai 

104.46 

13137 

17032 

M7J58 

06 

135 

19621 

193.72 

131.12 

18029 

168.61 

207.43 

16422 

16832 

New Setard 

70j8S 

as 

6041 

4099 

«L« 

6338 

08 

3.77 

7030 

68.71 

4151 

6005 

6283 

7739 

4857 

49.15 

Norway 

191.74 

-as 

187J» 

127.18 

16463 

18120 

-02 

1.77 

18289 

188^2 

127j60 

18475 

18161 

2014? 

15061 

15937 


341.78 

-1.1- 

33104- 

226.69 

29145 

24133 

-13 

1.78 

34143 

33790 

22151 

29103 

243L87 

37832 

342.46 

262.71 

South Afttat(B6).~ — - 

26180 

1.3 

28036 

17118 

22004 

278.65 

13 

134 

262.30 

25035 

17151 

22402 

274.61 

28026 

17533 

192.18 

SpetnlO) 

142JB 

0.6 

14001 

9473 

12233 

147J51 

12 

411 

14198 

13178 

9192 

12126 

14178 

155.79 

11133 

13011 

Sweden (38) 

716JS7 

-02 

21 220 

14335 

18535 

251.77 

-03 

1.58 

21191 

211.99 

143.49 

18128 

25217 

23135 

16335 

17832 

SwttterisndW) 

169.14 

-as. 

Ifi&OO 

105iS 

13184. 

13147 

-04 

1J5 

16040 

15178 

mio 

13199 

13106 

17166 

124.48 

12112 

United tOBJdom Ct© 164^0 

u 

18067 

12238 

15142 

18087 

IS 

414 

18221 

17108 

12054 

155J53 

17108 

21436 

17032 

179.18 

USA (519) . 

18181 

ao 

18093 

123.77 

18022 

18181 

0-0 

297 

18060 

18237 

12144 

15037 

18160 

18634 

T7835 

18535 

EUROPE (I50|A' 

m^JISUKi 

04 

16172 

106.75 

14177 

15120 

08 

394 

16131 

15980 

10103 

138/8 

1523* 

17838 

14138 

14&82 

Nenie 

.JM&S1 

-ai 

20125 

13058 

17080 

20738 

. 

1X4 

20115 

201.48 

13137 

17107 

20738 

22060 

15532 

16737 

PaOfcBwkipScj.— 

- 16124 

-09 

18191 

11236 

14532 

11153 

-06 

192 

17075 

16088 

11255 

14163 

11726 

17075 

134.79 

15434 


16169 

-0.4 

16060 

11089 

14328 

131.45 

-0.1 

1JB6 

167.40 

16169 

11060 

1410 

13134 

17078 

14138 

15132 

NMHAfflWkbRa -«3.11 

ao 

17060 

121.45 

15721 

162.74 

OO 

2.88 

183.10 

17194 

121.12 

15138 

182.74 

182.73 

17537 

18138 


'148.01 

-Ol 

14007 

9833 

12733 

13188 

OS 

040 

14016 

14SJ8 

8167 

127.40 

1K26 

157.47 

12237 

12832 

PadtiC-EX. Japan p81) im „J46,47 

-SJS 

241.62 

163.48 

211.62 

22088 

-2.1 

2.77 

25225 

24154 

16187 

211*5 

22162 

29831 

18238 

19139 

Wodd6x.U8{lSK9 

_1B8.04 

-03 

16472 

111.45 

14428 

13478 

-0.1 

198 

16162 

16490 

1115* 

14401 

13487 

17231 

14234 

151.73 

'- ■mx Ex. UK {1967) _ 

- 17207 

-04 

168.66 

114,13 

147.74 

14731 

-02 

2X0 

17271 

16179 

11425 

147A1 

14121 

17538 

15122 

16039 

WMd Ex. So, Jtf. (ZIU) w 


-as 

18023 

•114J5! 

14823 

15006 

-Ol 

999 

17105 

16113 

11448 

14730 

15014 

17158 

15100 

18136 

Woriu Ex. Japan (1 703) _ 

„„18T.«) 

ao 

17002 

12045 

15532 

17191 

01 

089 

18198 

177.56 

12118 

155.17 

17173 

19530 

16172 

16182 

1twWQridfe««pi72J__ 

— .m.ta 

. -02 

16078 

11437 

14070 

1S1JB 

OJO 

122 

17158 

16084 

11462 

14125 

15138 

17197 

15117 

16205 


BrftAkwsp 380 S 35 40 10ft IB 24 

rsao) 390 b a a 28 a 40 

SaB Brink 390 MH 3D 37 T8 26 33ft 

raoj 4a 71714 a 38 46 sift 

Boob 500 27ft 41 49 12ft 19ft 27ft 
rS24 ) 59] 8ft 18 a 43ft 49 55ft 

V 360 33ft 41ft 47ft 8ft 12Si 17 

n*3 ) 390 14 a 31 18ft 25M 30 

BrttftSMI 140 8H 13ft 17 8 lift 13ft 

(*141 ) 180 2ft B BW 22 24ft a 

Bass 500 37ft a 68ft 10ft 17ft 30 
[-530 ) 550 13 2414 33 37 44 5BW 

CamtVki 435 22ft - - 18 - - 
1*438 ) 450 11 - - 30M - - 

CMMAb 50QZO4 37 47 T7H 27 34 
(*512 ) 550 5 1BW a 52ft 59 84 

Comm Untoo 500 38ft 4BH 55 7 16ft 22 

(-530 ) 550 lift 19 28ft X 44ft 47 

« 800 42ft 57ft 72 IB » 46ft 

(*818) 850 17 M 50 46B4H73H 

KkWMsr 500 a 45ft 57 13H24M 31 
CSI5) 5H) 10ft 22ft 33ft 42ft 5ZJ4 SBH 

Land Secur B5C 14 28 35M25M X 39ft 
C655 ) 700 3 lift 18ft 68ft 71 7Zh 

HMia& 8 390 13 23ft » 15 a 24 
(*395 ) 4a 412K 18 38ft 40 42 
mathst 4a 44H 50ft 59ft 4» 13K 17 

(*45E ) 480 IBM 26ft 37 19 31ft 35H 

Satsbay 388 27ft » 44ft 9ft 18ft 22H 

{*385 ) 390 TTM 22M 2BM 24 32 37ft 

SM TCBS. 700 a M 47 17ft 30 35 

(-705 ) 758 7 16ft a 48 60ft M 

MlS 2D0 21ft 26 23ft 4» S11M 
[-215 ) 2a fl 14ft 18ft 14 17ft 21ft 

TnriHgar 79 TOft - - aft - - 

(■84) 68 5ft - - 7» - - 

Unlaw 950 64 85ft 95% BH 19 25% 

(-996 ) 1000 32 54 88ft a a 47 

Zeneca 850 « 55ft 66 10ft a 31 
(-675 ) 700 14ft 29ft 40ft 35ft 52 57ft 

OpBoa tag IIdv M Aug Nov Ftt 


(*435 ) 

LadKto 
{*168 ] 
UU 
PCS) 
Option 


4a a 
489 18ft 
100 15ft 
1EO 7ft 
309 34 
330 14ft 


W 48ft 13 21 a 
21 a 38 44ft 50ft 
ZtKZlft 812ft 14ft 
t2M 13H 20ft a 27 
42ft 45ft 4M 11 14ft 

a a 16 % a aft 
Sep Dan Jun Sap Dee 


P3BJ 

Option 


130 12 

140 4ft 


Iffft 23ft Z 8 12 
MMTTft 5M 13 17 


Aag Hot Fnb Aug Nor Feb 


Brit tad 430 44ft BE 75 17» 33ft *} 

(*4«3) 480 24 43 56% 3S 55% B2ft 

BAT M> <a 25ft 38H 42ft 21ft 28ft 31ft 

(M2S) 480 9ft 48 SH 50 55 57 

BTR 380 28ft 34 41 8K 16 19H 

(-375 ) 3W 1118ft a 24 32ft 35ft 

SHIHran 350 16ft 23ft 27 18 22 28ft 

(*367 ) 3te 5ft lift 15 40 41ft 47 

CabqSA «a 46 84ft 61 4ft 11 13ft 

(■456 ) 460 18ft » 37ft 18ft a a 

Eastern Eta: 550 38ft 47 58ft 25 35 43 

rSES) 500 13 28% 37 58ft 65 72 

UOMB 480 27ft 38 47 13 22 24ft 

P471 ) 500 8H 18ft 27K 37 45 48ft 

GEC 280 29% 24% 27% 7ft 12 16M 

3» 7ft 14 17ft 19 23% 26ft 


C2S8) 

280 

9 

14 

17ft 

12% 

18 21ft 

lasmo 

134 

16ft 

20ft 

- 

7ft 

10ft - 

P41) 

154 

5 

10 

_ 

18 

21 - 

Lnm tab 

160 

22 

25% 

29 

3% 

8ft 12 

nm 

180 

a 

US 

UK 

12 

19 22 

Pi 0 

600 

Bill 

74 

88ft 

10ft 

2514 31 

(*647) 

650 

29ft 

48 

53ft 

30 

51ft 57 

PIMnBSffl 

160 

21 

30 

32 

4 

7 9% 

H79) 

180 

11 

18ft 

21ft 

lift 

IB 19 

PlUdtllBSl 

2B0 

19ft 

ZBft 

32 

8ft 

15 17ft 

r288) 

300 

BM 

T7 

23 

IB 

27K28M 

mz 

800 

45ft 

88 

82 

22% 

42)4 47% 

r«i5) 

8S0 

21ft 

43 

55 

61 

6B» 74 

Rcdbnd 

460 

43 

55 

61 

g 

20% 25% 

r«i ) 

500 

19ft 

33 

41 

27ft 

42 46ft 

Royal trace 

260 

18ft 

27ft 

24 

lift 

19K 22 

r*5> 

280 

11 

18ft 

26 

23ft 

31 33 

Tesco 

ZOO 

18 

24 

28 

5 

11 12ft 

rzoa) 

220 

8 

13ft 

15ft 

IBM 

22 23% 

VtadatooB 

500 

34ft 

33 

63 

17% 

28% 38% 

rsi7j 

550 

12 

28% 

37ft 

48ft 

57 84ft 

imans 

325 

34ft 

41 

_ 

4ft 

10% - 

(*351 ) 

854 

15 

24 

- 

15ft 

23% - 

Option 


JU 

Oct 

Jtas 

Jti 

W Jen 

BM 

BOO 

47 

67ft 

79 

17 

28ft 36ft 

7937) 

950 

19% 

41ft 

S3 

44 

5414 82 

TteanscWtr 

480 

18ft 

28% 

31 

IB 

Z7H34H 

T473 ) 

500 

4ft 

Oft 

16 

50 

54ft GO 

OpBoa 


■fen 

Sep 

Ok 

Jnn 

Sep Dec 

Attar Nafl 

380 

27ft 

40 

48ft 

2 

13 16ft 

T4W) 

420 

8 

22: 

31H 

12ft. 

26% 30% 

ABsfcad 

30 

3 

5ft 

■ft 

1» 

3% 4ft 

P31 ) 

35 

1 

3 

4% 

4ft 

6 7ft 

BtRtiqn 

500 

3a 

91 

BZ. 

2 

15 21ft 

r535 ) 

UO 

4 

24! 

35ft 

22 : 

39K4BH 

Hus ttae 

280 

bm: 

23ft: 

36ft 

5 

15% 21% 

f285 ) 

300 

2ft 

14 21ft 

19ft: 

27% 32% 

mu Gas 

260 

B ' 

IBM 

IB 

5ft 

13 19% 

CVei ) 

230 

2 

8ft 

12 

21 

25 33 

Dtam 

180 

6» 

17ft 

22 

3 

14 16% 

nssj 

200 

1ft 

8 

14 

17ft 26ft 29 

Hfcdon 

160 

7M 18% 19% 

3 

8% BH 

1*165 ) 

100 

1ft 

7ft 

Tl 

17 

21 22 

Lorain 

140 

B 

15 

19 

4ft 

13ft 18ft 

n«u 

160 

1 

711ft 

20 ZBft 29% 

NbB Parer 

420 

6% 25ft 

3313ft 

27 31 

r«s) 

480 

1 lift 17ft 

48 53% 57 

Scot Pom 

330 

14' 

27 

32 

4ft 

20 24ft 

r339 ) 

360 

2ft 12ft 

IB 

24 

38 40ft 

Seraa 

110 

11 

15 

17 

1 

4ft 8 

niB) 

120 

3ft 

Bft lift 

4 

8ft 11 

Forte 

220 

BU 21ft 23ft 

3ft 

12 16 

r22B) 

240 

2 

12 14ft 17H 23» Z7M 

Tarmac 

135 

W 

_ 

_ 

1 

_ _ 

1148) 

155 

3ft 

— 

- 

8 

- _ 

Thom 00 

1050 19% 

55 

76 ISM E 

ISM 81% 

noss) 

1108 

Eft 

34 

57 57ft 

101 114 

758 

200 

7ft 

18 21ft 

4 12% 15% 

(*203 ) 

220 

2 

7ft 

13 IBM 

2B 28 

Taflkkv 

22D 

a 

18 21% 

3ft 12ft 16 

r227) 

240 

IK 

9 14ft IBM 

24 28 

Wofloorar 

500 

48 ea%78» 

2 

IB 27% 

P542) 

550 10ft 38M 81ft 17H42K 51ft 

Option 


M 

Sd . 

ba 

M 

Oct Jan 

Cbm 

500 fimt 

72 

78 

7ft 

25 32 

r546 ) 

550 

28 42ft 61% 

27 58ft 57ft 

8*C 75p rife 

700 49ft 

73 BBft Sift 52ft 63% 

(*713) 

750 

27 40% 06% 

80 BOM 90ft 

fteotoo 

475 27ft 

48 

- 

16 28% - 

f486 ) 

437 

21 33H 

- 22% 34% - 

OpOQO 

i 

tag Hw Fnb Aug Nor Feb 


Brttah Funds 
Other Raced internet 
Mineral Bttractfon 
Qoncsal Mantacturara 
Consumer Goorib 
Sendees 
Unities 

rtaa nctab 
investment Trusts 
Others 


Vaaa 

OnFrttay 

Ms 

Same 

Rase 

ftilha week 
Me 

Same 

64 

1 

7 

12S 

129 

34 

9 

5 

1 

10 

10 

40 

91 

32 

78 

241 

261 

302 

121 

164 

378 

390 

760 

1.505 

39 

49 

103 

126 

219 

419 

7B 

129 

304 

275 

543 

1.229 

14 

21 

11 

58 

85 

41 

117 

60 

197 

302 

469 

731 

90 

47 

333 

269 

521 

1.090 

78 

16 

37 

173 

213 

135 


Totals 


701 


524 1.446 1,866 3410 


&52B 


Dm* Mead on those cnm s m sn Med on Mis Undos Snsn Swvfca. 


TRADITIONAL OPTIONS 

Feat Ooafings May 23 last Dectanrilona 

Last DeaMnos June 10 For setttamant 


Sept 1 
Sept 12 


CelK tab Dragon 08, Leemo, Marta & Spencer, TUBow 08 Puts: Aada, Dragon 
Of, Lasrao, Marta & Spencer. Ttritav OB, World FMde puts & CafK M. Ctataon, 
Bunamel, HSBC, KhvfeM 


LONDON RECENT ISSUES: EQUITIES 


taaue Arm 
prtos paid 
p 14) 

MkL 

cap 

»nj 

IBM 

W0h LOW Stock 

Ctoso 

price 

P 

W- 

Not 

dv. 

Ov. Oe 
cat. ytd 

WE 

net 

100 

FJ>. 

44.1 

106 

100 Automotive Preca 

108 


LN4J3 

18 

46 

3S-Q 

- 

F.P. 

244.1 

60 

73 CAMAS 

BO 

+1 

UCJ5 

17 

19 

372 

— 

FP. 

10.7 

112 

106 CLS 

106 


- 

_ 



- 

FP. 

1Z8 

148 

125 Capital 

139 


LN33 

1.8 

3 j 0 

232 

§143 

FP. 

11.1 

151 

143 Cesse* 

151 


W39 

- 

32 

111 

tasa 

FP. 

1702 

249 

228 DOC 

228 


LQ34K 

3X 

3J0 

119 

110 

FP. 

41J0 

120 

110 DRB Ota 6 Fta 

115 


LN2J 

1.1 

3-0 

27 A 

180 

FP. 

45.4 

137 

133 Denby 

138 

-1 

W3.1 

28 

28 

132 

na 

FP. 

77J 

93 

BO Reming IncEen 

B2 


_ 

m 



- 

FP. 

780 

50 

42 Do Warrants 

47 


_ 

_ 

_ 

_ 

- 

FP. 

— 

37H 

25 QcvoKGU SI Wt 

35 

-1 

_ 


m 

_ 

105 

FP. 

624 

105 

QC 1 1,-Mi ■ ,.ta 

aa rNMRnGS* 

95 

-1 

WN4JD 

18 

13 

135 

225 

F.P. 

1059 

227 

221 Hanntxtae 

227 


LN9L9 

2.1 

5-5 

10 

« 

FP. 

— 

75 

65 JF R Japan Wrts 

72 

+4 

_ 

- 



A 

FP. 

490 

Sh 

5 Kays Food 

5 

-k 

m 

— 

_ 

_ 

ISO 

FP. 

655 

138 

117 Refer 

117 

-1 WN04.7 

2-3 -4J3 

116 

100 

FP. 

574 

163 

159 Lombard Irm. 

161 


WN7.7 

2 . 2 

10 

92 

- 

F.P. 

339 

15 

13^i My Knda Town 

13* 


_ 

. 



105 

FP. 

47 3 

113 

106 MghtMdM 

105 


RX38 

ZD 

4-0 

119 

12) 

FP. 

34.7 

129 125*2 Norco- 

129 

♦1 

W«6 

2-5 

4.4 

112 

- 

FP. 

2719 

131 

118 Redraw 

123 


WN2.7 

25 

27 

116 


FP. 

63.7 

92 

91 Scudder Latin 

91 


_ 

m 



- 

FP. 

116 

44 

43 DoVMs 

44 


_ 

— 

_ 


- 

FP. 

9*9 

133 

128 Specialty Shops 

132 


LZ4 

- 

28 

_ 

- 

FP. 

5&J3 

100 

96 TR Eteo Garth C 

98 


_ 

- 

_ 


100 

FP. 

514 

TOD 

82*2 TO Prep few C 

92>2 


_ 

- 

_ 

_ 

150 

FP. 

41.7 

1B2 

154 VVirua 

162 


L4.44 

Z2 

14 

15.7 

RKUfTS 

OFFERS 









Issue 

Amount 

Latest 




Cktan 

*or- 

price 

paid 

Ranun. 

1994 


price 


P 

to 

data 

Htti 

Low 

Stock 

P 


105 

N8 

V7 

21 pm 

18pm 

Btegdan Ms 

21pm 

tl 

237 

120 

ra 

M 

IMS 

6/7 

Stem 

26pm 

letzpm 

CJydo Slowrs 

Dawson InB 

X- 

-3 

-1 

Ittfc 

1* 

28A 

3J*n 

l^rpm 

Eeew 

1*8*71 


265 

HI 

- 

80pm 

33pm 

Etrabiwel 

60j*n 

♦17 

185 

ffl 

ii n 

25pm 

18pm 

Heactan 

18pm 

105 

N8 

aw 

iVpm 

1pm 

HtagsA HH 

Ihpm 


230 

Nl 

- 

34pm 

29pm 

■ten* porter 

29pm 

*5 

206 

M 

1677 

28pm 

16pm 

Ucfllpine (A) 

16pm 


80 

M 

4/7 

11pm 

tem 

Felon 

8pm 


24 

Ml 

— 

12pm 

10pm 

Unit 

12pm 


125 

M 

4/7 

33pm 

19pm 

vm 

19pm 

-1 


Ma-aqm 180 12 % 19 
(ISM 200 4ft 11 


22ft 10% 
14ft 24 


18 18 
28ft 31 


financial times equity indices 


(797) 


* UKMrtytng eseuttp pdM. Pwnum shown n 
tansd on cjoasig on or prioos. 

■kne 3 ToM comas: 32467 Ode 17J06 Met 
14801 


FT GOLD HINES INDEX 



JB 

2 

% *0 
niter 

Ja m IMt 

1 31 *90 

Gross dtir 
ylald ft 

32 ersek 

Iflgb Lea 

fete Moss tedsx (35) 

192173 

-05 

1B37JS imes 172851 

105 

23KM6 152288 

■ Raotasl wfcee 







261320 

-07 

2531 JB 261182 2360,17 

485 

344080 190223 

taentatap) 

2807 JB 

-25 

267&2S 2E2&88 207029 

1J9 

301188 169118 

NartttatertctnH 

162857 

•HU 

162776 166142 151474 

068 

203855 136100 



Jin 3 

JuneS 

June 1 

Mny 31 May 27 

Yr ago 

*Heh 

■Low 

Ordfcrary Share 

23739 

23845 

2321-2 

23544 

3347.1 

22111 

27118 

2321.2 

On <fv. yloH 

422 

42S 

432 

427 

429 

417. 

4-32 

143 

Earn. ytd. % M 

5.62 

64H 

6.7B 

5.64 

5-67 

520 

5.7B 

3-82 

WE ratio net 

1105 

1114 

1138 

1802 

1195 

23.79 

33J43 

1159 

P/E ratio nfi 

19^9 

1171 

1922 

19» 

19-51 

22.19 

3080 

18.16 

Tor IBS*. Otfewy Share Max ateee nanplBMn: Mph 27118 2J02AM; lc~ «.r SOWO 
FT Onaery Shras fextex base cam V7/3& 


(Mhwy Stare hotrty c han ges 

Open ano 1000 TfjQO 1200 1X00 14M 1SJ0Q 16J» High Low 


23884) 2386.7 2387J 2378J) 2384J 2382.1 2369,0 236BJ) 2369.1 2384.8 2353^1 
June 3 Junflg June 1 May 31 May 27 Yr^c 


UtatntgM. Tbe Ftamri Urns Umtad, Qottnsn. 
Uaeu pfeNMn MeerUta tar (Ms eSOon. Metals 


and Co. and MtlUtat fl a m a Ws e Untied. 1987 
nmnt-mfrl 1--r*n 7 Him — r 


©Jrndtfa, lh» FtacU Tfcw LHM1 IfiO*. 

flgins in brackets *o» nunfcer of oomponiss. Basts US (Mhaa. Bass VSwx 1KKUX) 3VJM2. 
Pradoeaesor Bold Mines Wee June a 2173 ; d*»"s etianga: *5,1 pota* Yaw ifla2 f ftrtd 
Lanwt pun *en mtataUs ta Hi addon. 


^AQ bargains 31,492 20,144 22,553 28^21 264)48 

Equity turnover (fatf - 1161 M 11163 1055^ 10806 127? 

%W**W**t_ - 30073 27.230 29^84 204388 37I 

Shone traded W)t - 519,1 4464) 4082 4681 

t Eadudaifl fcaannemar tiuebsae id Herasae lumpwa. 





























































































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FINANCIAL TIMES 

Weekend June 4/June 5 1994 



081 6892266 


worldwide Expanse ahd resobkes 


Nat West 
card error 
affects up 
to 60,000 
customers 


Compromise reached after Delors intervenes 

Brussels set to revive 
rescue plan for steel 


By Lionel Barber in Brussels 

The European Commission looks 
set next week to perform a 
U-turn over its rescue plan for 
the steel industry, confounding 
predictions that the plan was 
dead and buried. 

Senior officials predicted the 
Commission was likely to back a 
fresh effort to revive the steel 
plan under the joint auspices of 
Mr Jacques Delors, Commission 
president, and Mr Martin Bange- 

winnn , industry frimrnl<a^ r mpr 

A compromise under review in 
Brussels calls for the Italian gov- 
ernment to repackage proposals 
for subsidising plant closures In 
the northern Brescia region, rais- 
ing hopes that the steel plan's 
ambitious target of cutting 19m 
tnnnM in capacity can be met 

Just three weeks ago, Mr Karel 
Van Mlert, commissioner for 
competition policy and co-archi- 
tect of the steel rescue, pro- 
nounced the plan “dead”. He crit- 
icised colleagues for voting down 


his proposals for monitoring the 
Bresdani cuts, and said he would 
play no part in future talks. 

Mr Van Miert’s decision to dis- 
sociate himself from the steel 
plan led to a crisis within the 
Commission and baffled Euro- 
pean steel producers. Despite a 
lack of enthusiasm within the 
private sector, most steel groups 
argued the plan provided a useful 
framework for cutting excess 
capacity and curbing state aid. 

Mr Delors Is believed to have 
held talks with Mr Van Mlert yes- 
terday in an effort to bring him 
back on board. This is all about 
saving Van Miert's face," said 
one senior official. 

Under a complex compromise, 
the Commission is likely to 
examine a report on the Euro- 
pean steel industry, which 
includes a request to the Italian 
government to refine Us add pro- 
posals for the Bresdani plants in 
order to produce cuts of between 
5m and 6m tonnes in capacity. 

The Commission will also con- 


sider Mr Van Miert's request for 
the preparation of possible legal 
proceedings a gatngt the Italians 
for paying unfair subsidies to 
producers. However, officials said 
the inclusion of possible proceed- 
ings was a token gesture. The 
real messag e from the Commis- 
sion was a request to Rome to 
repackage its aid proposals for 
the Bresdani steel mills. 

Mr Van Miert’s original plan 
was outvoted after legal objec- 
tions from Sr Leon. Brittan, the 
Em's chtef trade negotiator. He 
questioned the principle of allow- 
ing state aid for partial closures 
of steel companies, and warned 
that it could damag e Ms efforts 
to reach a multilateral steel 
agreement with the US. 

Yesterday, mffiHais dose to Mr 
Van Miert questioned whether 
Sir Leon would ride bearing the 
blame for a second collapse of the 
steel plan, not least because his 
long-shot campaign to succeed 
Mr Delors depended heavily on 
Italian government support 


Normandy awaits second invasion 


Continued from Page 1 


Division, aged between 68 and 83, 
who have persuaded reluctant 
French authorities that they are 
fit enough to foil out of toe sky 
over Sainte-M&re-Eglise, just as 
they did 50 years ago. 

On Monday, the five kings and 
queens, five presidents, four 
prime ministers and one gover- 
nor general will criss-cross the 
area in a complicated quadrille of 
bilateral ceremonies. One, 
France’s 76-year-old President 
Francois Mitterrand, will have to 
be virtually everywhere as host 
while all will be at the “inter- 
national" ceremony on Monday 
afternoon at Omaha Beach, the 
scene of the worst allied casual- 
ties on June 6, 1944 with the 
deaths of 3,000 Americans. 

Absent, perforce, will be any 
official representatives of Ger- 
many, which lost 58,000 men in 
the Battle of Normandy to the 

37,000 allied dead, even though 
there will be at least one small 
unofficial American-German cer- 
emony at the private initiative of 
veterans of both sides. But Mr 
Mitterrand has invited German 
troops belonging to the Euro- 
corps, and Chancellor Helmut 
Kohl, to attend France’s Bastille 


day parade in Paris next month. 
Germany will be present, too, at 
next May’s ceremonies marking 
the end of the second world war. 

Meanwhile, however, this 
weekend's events will require 
considerably more troops than 
the free French were able to mas- 
ter for D-Day - 15.000 soldiers to 
ensure the logistics, 7.000 gen- 
darmes to guard the roads, and 

4,000 police controlling crowds. 
“It's a bit like organising a sum- 
mit meeting in the midiifa of the 
Olympic Games," says Mr Roger 
Gros, the harassed prifet of 
Lower Normandy, referring to 
the problem of trying to ensure 
the safety of so many bigwigs 
among so many other people In 
such a large area. 

But he will have, as the allies 
did half a century ago, the advan- 
tage of air superiority. An air 
exclusion zone will prevent any- 
thing but VIP helicopters from 
circulating over the Normandy 
coast 

Controlling the sea may be 
harder. In the royal yacht Britan- 
nia, Queen Elizabeth is expected 
on Sunday to lead a small 
armada from Portsmouth, where 
tonight she is to host a state din- 
ner. Her Majesty should have no 
problem. Pressure on her civil 


list is not Su ch that B ritannia has 

had to take on cheap Chinese 
crew, which is the reason that 
French sailors gave for prevent- 
ing two P&O ferries from docking 
at Cherbourg on Thursday. 

The presence of some 45 war- 
ships, as well as several thfUTsand 
private boats, win at least ease 
the hotel squeeze in Normandy. 
The Queen will stay cm the Bri- 
tannia moored in the port of 
:Caen. while President BUI Clin- 
ton will repair offshore to the 
aptly chosen Dwight Eisenhower 
a ir cr a ft carrier. 

Other dignitaries have had to 
settle for staying in Paris, so as 
not to disrupt long-made hotel 
reservations by D-Day veterans. 
On Wednesday a Caen tribunal 
ordered a local hotel to pay 50 
British veterans from the Lancas- 
ter Regiment FFr1,500 each in 
Mimpenaitiffli for rarirpTHng their 
bookings. 

In general, the welcome has 
been warm - and commercial. 
All sorts of souvenirs for D-Day. 
or Jour-J as it is known in 
French, are on sale, including 
Bordeaux and Beaujolais under 
the "Ddbarqaement 44” label. 
Luckily, it is not actually that 
vintage, which would have aged 
much less well than the veterans. 


By Alison Smith 

Up to 60,000 people have been 
affected by a mistake in process- 
ing by National Westminster 
Bank, which led to Visa credit 
and debit card transactions for 
May 26 being put through its 
computer twice. 

The mistake, which involved 
millions of pounds of transac- 
tions, affected not just NatWesfs 
own customers, but also those 
with Visa payment cards issued 
by other hanks and building 
societies who used their cards at 
retail outlets which bank with 
NatWesL 

NatWest said yesterday that ft 
had discovered tbe error an May 
28, and that corrected entries 
dated May 31 would be appear- 
ing on statements. 

The correction was being back- 
dated so that no customer wuuld 
lose out financially, it said. 

The bank Wummi the blonder, 
which arose when the same 
transactions were processed on 
two successive days, cm frnrtum 
error rather than a computer 
failure. It said the whole system 
was being checked to make sure 
the mistake did not happen 
again. This is not a regular 
occurrence”, a spokesman said. 

NatWest said that the small 
minority of customers whose 
monthly statements ended before 
the credit entry chnnid deduct 
the duplicated amount from 
their bills, and should e n nfir m 
this with their card issuer if they 
had any difficulties. 

This is not tbe first time Nat- 
West has had problems with its 
processing. 

Last year, a human error in 
converting its Worldwide Fund 
for Nature Visa card accounts 
into ordinary Visa accounts 
meant that payments from some 
WWF card holders were credited 
to the accounts of other Visa 
c ar d customers by misfa>k»_ 

On that occasion, the bank ini- 
tially decided to adjust tbe 
accounts only of those individual 
customers who noticed a discrep- 
ancy and complained. 

Only after one customer had 
contacted a senior member of 
staff did NatWest contact and 
compensate the remaining card 
holders who were affected. In 
1992, NatWest had to alert thou- 
sands of cardholders to errors 
after software was changed. 


THE LEX COLUMN 

An ebbing tide 


If this were a normal cycle, the UK 
equity market should soon start to dis- 
engage from bonds. Equities would 
outperform because economic recov- 
ery would feed through to corporate 
earnings while the gilt market started 
to worry about inflation and monetary 
tightening. .Two developments this 
weak suggest the pattern may not 
automatically repeat itself this time. 
One is the April setback in the hous- 
ing market The other is yesterday's 
M4 money supply data which shows 
that, after net purchases of gilts as 
high as £2.7bn in December, overseas 
investors were net sellers to tbe tune 
of £L3bn in ApriL 

It is too early to say whether the 
April housing figures simply represent 
a blip In a still rising trend. But they 
do cast Hum* doubt on inflation 
fears which have been commonly cited 
as a reason for the weakness of gats 
this week. Taken together with the 
data on overseas purchases end the 
run-up in real yields on. index-linked 
stock, that suggests the real problem 
may still be the withdrawal of the 
overseas liquidity which sustained the 
market at its peak. 

Whatever the balance between the 
two factors, the outlook for gilts is not 
particularly encouraging. If growth 
and inflation worries are not the cause 
of the market's malaise , Hw liquidity 
shortage leaves little reason for 
expecting a sustained recovery. Equi- 
ties by contrast could do with a dose 
of growth, but they too seem to have 
suffered from the shortage of interna- 
tional investment liquidity: witness 
toe FT-SE 100’s 15 per cent slide since 
February despite toe improving eco- 
nomic outlook. If liquidity shortage 
remains the rirnninant influence, even 
toe prospect of grow t h at 3 per cent 
this year would not put much life back 
into equities. 

Lasmo/Enterprise 

Lasmo has now been forced twice in 
a week to modify extravagant state- 
ments that it has madp in trying to 
fend off Enterprise’s hostile bid. In toe 
latest and most serious case, the Take- 
over Panel said Lasmo's allegations 
that Enterprise had breached account- 
ing standards were stronger than it 
considered acceptable. Whatever spin 
Lasmo tries to put on it investors will 
take a dim view of a management that 
shoots from toe hip in this way. 

Still, the substance of Lasmo’s alle- 
gations have hit Enterprise hard. 
Enterprise’s decision to write down 
sharply the value of assets at the time 


FT-SE Index: 2997.8 (+17.0) 


Daily Mafi 

Daily MaS &' Genual That rahtfwa to the 



198466 86 S7Ua 89 90 9192 93 94 
Sqursk O Wtltff B 

they were acquired in toe late 1980s 
has reduced depreciation charges and 
boosted reported earnings. This has 
reinforced the impression that Enter- 
prise cannot really afford to pay divi- 
dends at their current level. The com- 
pany’s share price has suffered. At last 
night’s close of 382p. its all-paper offer 
was worth only 124p a share compared 
with Lasmo’s share price of 142p. 

This 18p gap is the most important 
indicator of how the bid battle is pro- 
ceeding. Enterprise has sought to 
close it by arguing that it can add 
value to Lasmo’s business. But these 
arguments cany no more conviction 
than they did at the start of the bid. 
That leaves Enterprise in the same 
bind. It needs to improve the offer, 
probably by offering significant 
amounts of cash, if it Is to clinch 
Lasmo. But that would put its ability 
to maintain dividends to its own 
shareholders under even greater pres- 
sure. 

Daily Mail 

Yesterday's £90m acquisition in 
regional newspapers is confirmation 
that Daily Mail and General Trust has 
moved onto the front foot Gearing, 
which was uncomfortably high follow- 
ing toe buy-out of Associated Newspa- 
pers in 1988. has been gradually low- 
ered. Capital spending is now falling 
and toe national newspaper titles are 
in fine fettle. With its bids for the 
national lottery and third national 
commercial radio licence both unsuc- 
cessful, Daily Mail is free to pursue 
other opportunities. 

Even allowing that T. Bailey For- 
man will improve on last year's £4.8m 
pre-tax profit. Daily Mad is paying a 


full price for a business already earn- 
ing decent margins. But the Notting- 
ham Evening Post is probably worth 
more to Daily Mafi than to other bid- 
ders. Its Northcliffe regional newspa- 
per empire has titles in most of toe 
■ surrounding towns, so integration 
should yield cost savings. As one of 
the last independent regional newspa- 
per companies, T. Bailey Forman was 
always likely to command a scarcity 
premium. 

Yet the main thrust of recent invest- 
ments has been in other areas of toe 
media. This week also saw a £7m 
acq uisition in local radio. Substantial 
sums are being sunk into a cable 
television station for London and US 
multimedia interests. Given its record 
of picking winners - the seed capital 
investment in Euromoney being a case 
in point - shareholders will be happy 
to back toe company's judgment The 
real test is whether Daily Mail can 
repeat Its success outside the flaniHar 
world of newsprint 

US economy 

Financial markets did not know 
quite what to make of yesterday's US 
unemployment figures. A jobless rate 
as low as 6 per cent seems calculated 
to fuel worries about Inflation as it is 
toe level at which wage pressure is 
traditionally expected to appear. But a 
payroll increase of just 190,000 points 
to some slackening in the recovery, 
especially since part of it was 
accounted for by the return to work of 

70,000 striking truck drivers. Put the 
figures together with other recent 
data, for example on retail sates and 
durable goods shipments, and it looks 
as though tighter monetary policy 
may be starting to bite. The Labour 
Department itself has seme reserva- 
tions about the accuracy of the jobless 
rate, both because it is based on rela- 
tively new methods of data collection 
and because of toe size of tbe foil from 
6.4 per cent in ApriL 

There thus seems little to dispose 
the Federal Reserve to tighten again 
in toe near term. But neither can toe 
markets, relax. May represents only 
one weak m onth in a trend of gener- 
ally strong employment growth this 
year. Also yesterday's data do show 
some ac ffdgratiQ n in average paming s. 
Though the year-on-year growth is 
only 2.75 per cent. May's increase was 
0.5 per cent That figure, too, may 
have been affected by the return of the 
truckers, but it could come back to 
haunt the markets if other signs of 
Incipient inflatio n appear. 


Fidelity International Investor Service 


Fall in US jobless rate unsettles bonds 


Hanson 

Continued from Page l 


to be "awash with cash". 

Lord Hanson also referred to 
tbe government's desire for wider 
share ownership and asked Mr 
Dorrell how this policy sat with 
his comments about the rise in 
dividends. His criticisms under- 
line growing concern that the 
Treasury may change dividend 
taxation in the next Budget. 


Continued from Page 1 


government bond markets. Tbe 
yield on the benchmark 10-year 
UK government bond slipped to 
833 per cent from 8.47 per cent 
on Thursday as tbe price rose to 
89& from 88£. 

The yield on 10-year German 
government bonds fell to 6.97 per 
cent from 7.04 per cent on 
Wednesday, the previous trading 


day. Bond prices were also 
buoyed by technical factors 
caused by toe imminent expiry of 
futures contracts. 

On. Liffe, London's financial 
futures exchange, toe September 
long UK government bond 
futures contract fell as low as 
99$ before rebounding to 1Q2& in 
heavy volume for a gain of 1$ 
points. 

Stocks partly followed the 


movement in bonds. After open- 
ing with a 15-point decline, the 
Dow Jones industrial average 
pushed into positive territory and 

than frP S TtatAri 

An unexpected decline in man- 
ufacturing employment con- 
tained in the May report may 
have restrained enthusiasm. By 
L30pm, however, the index was 
gathering fresh strength, clim- 
bing 1558 to 3,77457. 


FT WEATHER GUIDE 


Europe today 


A vigorous tow pressure system win move over 
southern England, bringing rain to Ireland and 
south-west England in the morning. The wet 
conditions will spread east affecting the rest of 
England, northern France, the Benelux and 
northern Germany by the afternoon. The coastal 
areas win have near gala to strong south- 
westerly winds, heading north-west later. It will 
be sunny and warm In southern France, 
Portugal, Spain and Italy. There will be a 
mixture of sunshine and showers in the 
Balkans. The Alps and southern Germany win 
have occasional showers. Poland, western 
Russia and southern Scandinavia win remain 
unsettled with cloud and some rain. 

Five-day forecast 

A vigorous low wfli arrive over north-east 
Poland on Monday bringing cool, windy and 
showery conditions over central Europe. 
Western France and England will have pleasant 
conditions as an Atlantic high builds towards 
the Gulf of Biscay. New disturbances will bring 
unsettled conditions later next week. Portugal 
and Spain wiU remain sunny and hot, while in 
Greece afternoon temperatures wiO foil and an 
isolated thunder storm wBI develop. 


TODAY'S TBMPHRATURES 



Wind «p**d in KPH 


Situation at 12 GMT. Tmpvatms modmm tor day. Forecasts by Matao Consult of the Notheri a nda 



Maximum 

Bating 

ahomar 

32 

Caracas 

sun 

28 

Ednburah 


Celsius 

Belfast 

ratal 

14 

Cardiff 

windy 

11 

Fare 

Abu Dhabi 

sun 

43 

Belgrade 

sun 

33 

Gaaabtonca 

fata 

26 

Fraridut 

Accra 

far 

32 

Bettin 

(air 

20 

Chicago 

sun 

27 

Geneva 

Atekm 

lata 

32 

Bermuda 

fair 

28 

Cologne 

shower 

15 

Gftnttar 

Amsterdam 

shower 

Ifi 

Bogota 

fair 

19 

Dakar 

sun 

27 

Gfesgow 

Athens 

sun 

33 

Bombay 

shower 

34 

Dates 

fair 

31 

Hambwg 

Atlanta 

fata 

32 

Brands 

shower 

14 

Delhi 

fair 

44 

Heewwi 

B. Aires 

fair 

18 

Budapest 

fata 

26 

Etehvta 

fair 

31 

Hong Kong 

BJhofn 

rain 

9 

Citagen 

fair 

17 

Dubai 

sun 

41 

HcnoMu 

Bangkok 

thund 

31 

Cairo 

aw 

35 

fXtblki 

rate 

16 

Istanbul 

Barcelona 

sun 

V 

Cape Town 

cloudy 

IS 

Dubrovnik 

fata 

31 

Jeraay 

Karadd 



Lufthansa Express. 

The best connection in Germany 

Lufthansa 

German Airlines 


Kuwait 
L, 

LbgI 
Lima 

Lisbon 

London 

LiKbourg 

Lyon 

Madeira 


fata 

15 

Madrid 

SOI 

S3 

Rangoon 

sun 

32 

SUl 

28 

Majorca 

sun 

30 

Reykjavik 

shrever 

11 

Mr 

13 

Mute 

sun 

32 

Rio 

shower 

25 

Mr 

18 

Manchester 

rain 

10 

Rome 

sun 

27 

SU) 

33 

Mante 

thaw 

32 

S. Frseo 

fata 

19 

shower 

15 

Melbourne 

fata 

19 

Seoul 

sun 

29 

shower 

10 

Mexico CKy 

fata 

25 

SSngtewa 

fair 

31 

ratai 

16 

Mtamf 

thund 

32 

StocMiokn 

lair 

19 

shower 

29 

Mten 

sun 

28 

Strasbourg 

cloudy 

19 

Mr 

31 

Montreal 

sun 

24 

Sydney 

shower 

18 

Mr 

30 

Moscow 

shower 

IS 

Tangier 

shower 

27 

windy 

13 

Mmloh 

thund 

20 

Tel Aviv 

Ur 

30 

sun 

36 

Nairobi 

shower 

23 

Tokyo 

aut 

27 

sun 

46 

Naples 

SOI 

29 

Toronto 

sun 

20 

sun 

21 

Nasstei 

fair 

31 

Vancouver 

fair 

18 

sun 

24 

New Yak 

sun 

27 

Venice 

shower 

26 

Mr 

20 

Nice 

sun 

24 

Vienna 

Shower 

23 

sun 

26 

Mcaaia 

sun 

31 

Warsaw 

shower 

21 

rain 

14 

Oslo 

shower 

17 

Waahtatgton 

Ml 

28 

shower 

12 

Parts 

retai 

14 

WeSngtcn 

Ur 

12 

fata 

fata 

22 

22 

Perth 

Prague 

cloudy 

thund 

IS 

21 


sun 

Ur 

27 

18 


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TIMES WEEKEND JUNE 4/JUNE S 1994 


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SECTION II 


Weekend June 4/June 5 1994 


F ield Marshal Erwin Rnwr^ri 
the legendary “Desert For, 
and commander of the main 
German force in Normandy at 
the tune of the D-Day land- 
ings, would be astonished, if he were alive 
today, that Germany has survived at aDL 
He would be even more baffled, says bis 
son, Manfred, to find it a prosperous 
democratic federal republic. 

“At the end of 1943, he had found out so 
much about the concentration camps, and 
the extermination of the Jews, that he was 
convinced Germany was condemned to 
total destruction," says Manfred. 

Field Marshal Rommel never lived to see 
the day. He was critically wounded in Nor- 
mandy on July 17,1944 by a low-flying 
; Allied fighter and evacuated to Germany. 
By October, he had been implicated in the 
July 20 plot to assassinate Hitler, and was 
persuaded to commit suicide rather thaw 
face a show trial. 

He would no doubt have been equally 
baffled to see his sod. who was 15 years 
old when he died, as'Dard Mayor of Stutt- 
gart for the past 20 years, a pillar of Ger- 
many 1 s post-war Hheral democratic estab- 
lishment in one of its wealthiest regions. 

“During the Allied invasion, my father 
had decided that on his own responsibility 
he would surrender, * he said. “That was 
. why he had to be . removed. Yet he could 
not imagine that Germany would get so 
much constructive help after its defeat 
from its own opponents. He could not have 
dreamed that it would eventually become 
the prize pupflaf America. 

“After the first world war, one could 
argue about whEther the Germans were 
guilty. After the second, it was completely 
- dear - and yet our enemies behaved gen- 
erously, and it proved a huge success." 

Germany was not invited to join the 
allies in the flag-waving nationalism of 
their 50th anniversary celebrations of the 
D-Day landings. Yet the bulging prosperity 
on the streets of Stuttgart - the headquar- 
ters of Daimler-Benz as weH as the US 
Seventh Corps - lea-res little doubt that 
“Germany lost the war, but won the 
peace” •' 

Germany’s re-emergence as the domi- 
nant economic power in Europe has been 
accompanied by a great inner search fix* a 
new national Identity and pride, a debate 
about the dangers of nationalism. and a 
huge effort to find its proper equilibrium 
to the rentes of Europe. 

Tbis old debate is now Sharply focussed 
by the barrage of D-Day commemorations 
and the other anniversaries culminating 
in the victory celebrat&n on May 8, 1995. 
Should Germans remember this date as as 
defeat or as a Tiberatkm from the Nazi 
dictatorship?. ' \.~* 

This qugitian has H especial p oignancy at ' 
a time when teBertto'Wall.ts just a gap 
in the landscape across the nation's future 
capital. And a imifiprf Germany has recov- 
ered its sovereignty in international 
affairs. Yet, it lacks a unifying sense of 
national direction. 

The spate of racist violence against for- 
eigners in Germany after unification, and 
some signs of a revival of far-right politi- 
cal parties in local elections, has brought 
the debate on Germany's national WmHiy 
under dose scrutiny. Yet it remains a con- 
fusing debate for Germans east and west, 
let alone for foreign observers. 

One year 'ago. a senior adviser to Chan- 
cellor Helmut Kohl argued urgently that 
failure on the pert of his western allies to 
invite him to Omaha beach could cost him 
victory In this yen's general election. The 
chancellor, he said, had dedicated Ids 


Sera 









hands, but we did not." 

She is profoundly concerned at the 
revival of a debate over Germany's 
national identity: “It worries me very 
much.” she says. “There is a strong feeling 
of this *We won the peace’. It could be a 
good feeling, if it is combined with mod- 
esty and gratitude. But when people like 
our new right-wing groups try to cut out 
all the past, and say Germany is uncon- 
querable, that means the creation of a 
dangerous new myth. 

“The second myth is that the Jews were 
not exterminated, and that once again the 
Jews are guilty of everything. Something 
went wrong in telling our children and 
grandchildren about it. It is wrong to 
transfer the feeling of guilt to young peo- 
ple. They should not feel guilty. It is 
rather a question of feeling responsibility 
for the future, and learning from these 
historical disasters. It is a question of 
learning, arid making sure people don't 
forget tt" 


T he conservatives are not the 
only ones to debate national 
identity in Germany. Former 
Chancellor Helmut Schmidt, 
for one. believes tbis is one of 
the big questions facing the nation. 

“Only after unification in 1990 did the 
Germans on either side understand that 
they were not easily communicating with 
one another, as between brothers and sis- 
ters. They had lived under diverging influ- 
ences for almost half a century." be says. 

“The east Germans did not know until 
1990 that their idea of what it means to be 
a German was different from what a west 
German thought West Germans have no 
idea of what life was like under Ulbricht in 
Dresden.” 

Before unification. West Germany's 
sense of national identity was deliberately 
submerged in the country’s commitment 
to west European integration. Its self-im- 
age was best summed up by Professor Karl 
Dietrich Bracher of Bonn University, who 
described it in 1986 as “a post-national 
democracy among nation-states.” East 
Germany was dedicated to a communist 
vision of internationalism, however spuri- 
ous that may have been. 

“We [Germans] want to harness our- 
selves in Europe. We don't want to domi- 
nate," says Reoate Schmidt “We know 
that dominance brings unrest it disturbs 
the peace -The difference between Britain. 
France mil Germany is that Germany has 
been a nation for the shortest time. Many 
of you don't understand our debate over 
federalism. We are profoundly federal 
There are many different identities: Bavar- 
ian, Saxon, Hessian, yon name it. 

“We don’t want to be a great nation. We 
want our economic power to be controlled 
within Europe. We regard the revival of 
natinnaiigm in other countries, not in Ger- 
many, without any pleasure." 

Helmut Schmidt, like Kohl, was commit- 
ted to the idea of Germany being “bound 
into" the European Union, although he 
argues that it is as much out of self-inter- 
est as altruism. 

“It is not necessarily only in order to 
restrain ourselves, but also to prevent 
coalitions against Germany from ever hap- 
pening again," he says. 

“Our geo-strategic position in the centre 
of Europe is almost unique, shared only by 
the Poles. When they were weak, they 
suffered from invasion: by the Swedes, by 
the Turks, by the Hungarians, by Genghis 







D-Day’s absent friend 


Consigned to the periphery of the D-Day anniversary, Germany has emerged as the greatest 
power in a united Europe. Quentin Peel explains what the Germans think of it all 


political career to the vision of recantiHa- 
tkm, of the new Germany being inextrica- 
bly bound into the twin alliances of Nato 
and the European Union. To be snubbed at 
such a key celebration could be politically 
disastrous. 

Yet Kohl is most unlikely to have 
sought an invitation - conscious of having 
foiled to get one 10 years ago at the 40th 
anniversary. Any such suggestion diplo- 
matically faded as it became apparent that 
even his great ally. President Francois 
Mitterrand, was not politically ready or 
able to extend the veterans’ day parades to 
include the losing side. Most Germans find 
it foiriy understandable, even preferable. 

“You would hardly expect the French to 
attend a celebration of the battle of Water- 
loo." says Joachim Fritz-Vannahme, fix* 10 
years a German foreign correspondent 
based in Paris for the newspaper Die ZeiL 


“It is a military event, and we were the 
ones who received a military defeat." says 
Renats Schmidt, vice-president of the Ger- 
man Bundestag, the lower house of parlia- 
ment, and leader of the opposition Social 
Democrats in Bavaria. “Military events are 
not my type of commemorations.” 


Y et others, including some 
unlikely allies for the chan- 
cellor. regret the day as a 
missed opportunity, and a 
sony demonstration of the 
revival of nationalism around the world. 

‘The greatest mistake was not to invite 
both the Germans and the Russians." says 
Daniel Cdhn-Bendit, the former hero of the 
1966 student barricades to Paris, son of 
Jewish refugees from Germany, arid now a 
leading intellectual force of the German 
left. “D-Day is the day of the beginning of 


liberation from fascism and totalitarian- 
ism. It isn’t the victory of the French, 
British and Americans against the Ger- 
mans. They also had to fight F rench col- 
laborators and Belgian collaborators. 

“The way D-Day will be celebrated is a 
victory for nationalism, and a black day 
for Europe." 

For Cohn-Bendit, however, the most 
important question for Germans is not 
whether the political establishment is 
invited to attend, but whether they see the 
day as liberation or defeat 

The concept of liberation has already 
been widely accepted. In an opinion poll 
published this week in Die Woche, the Ger- 
man weekly newspaper, 69 per cent said 
they saw the end of the second world war 
as liberation rather than defeat 13 per 
cent disagreed, and 14 per cent were unde- 
cided. A similar figure of 67 per cent said 


they would not have liked to live to Ger- 
many if the Nazis had won the war, and 64 
per cent said it was “good” that Germany 
had lost. 

President Richard von WeizsScker. the 
retiring head of state, strongly articulated 
this view in a remarkable speech to the 
Bundestag on May 8, 1985. Yet his succes- 
sor, Roman Herzog, still felt constrained 
on the subject when he was elected last 

month. 

Hildegard Hamm-BrOcher, the grand old 
lady of liberal politics in Germany, and a 
rival candidate far the presidency, sees the 
continuing debate as “a sign of precisely 
how little we have come to terms with this 
period of oar history. We stfil don’t trust 
ourselves to say it was the liberation we 
never could have achieved on our own. 

“If only we could have got rid of Hitler 
and his criminal band with our own 




Continued on Page VJU 
D-Day books, Page XV 


CONTENTS 


Finance and tha Family s The 

good Pop guide ■ . Ill 


| Sport * John Barrett at the Front* 
l open tennis championships . Xffl 


The Long View/ John Plender 

Chaos theory for bonds 






GardeidRirz Bobin Lane Fbx goes 
potty XN 


F or anyone who lived through 
the second half of the 1970s 
the past few days to the mar- 
kets have felt curiously famil- 
iar. With apologies to Henry Ford, his- 
tory, to this instance, is funk not bunk. 
Bond investors are on strike again and 
the Bank of En gland has been forced to 
disinter exotic kinds of IOU to coax 
these fickle folk back. 

Its latest offering consists of a 7 per 
cent convertible - a throwback if ever 
there was one. Meantime inflation wor- 
riers are to a panic over shortages of 
steel and paper to the UK. All that Is 
missing is the presence of the Interna- 
tional Monetary Fund. 

If only the IMF would come back. It 
was much more forgiving than a liber- 
alised and empowered global market, 
and you could at least argue with its 
poker-faced officials. Even the Bundes- 
bank was punished by investors earlier 
this week for daring to caned an issue 
of bond6. The backwash from this 
stand-off was felt across Europe and 
caused British gilts and equities to wob- 
ble. Yet the Bundesbank has less rea- 
son than most to decline to raise money 
at current rates. 

With German inflation running at 
around 3 per cent and 10 year bonds 
yielding just over 7 per cent the real 
rate of interest in Germany is about 4 
| per cent If that sounds tough, look at 
Sweden, where toe comparable rate is 7 
per cent or the UK. where the equiva- 
lent figure is dose to 6 per cent, or 
France, where it is not far short of that 
These numbers are potentially ruin- 
ous for government borrowers and con- 
stitute a pre-emptive strike against 
inflationary pressures that are still 
remote at this early stage of European 
economic recovery .And if bond yields 
continue to rise, they could threaten to 
turn recovery back into recession, espe- 
cially in continental Europe. 

Since February, when market strate- 
gists readied for their books on chaos 
theory, the bond markets seem to have 
been obsessed, with historic perfor- 
mance rather than future prospects. 
German bonds have been a safe haven 
in Europe, with yields rising less than 


Travel : The bright fights and back 
roads of Louisiana ' XVI 


Property; Gerald Cadogan on 
Hampshire's infinite variety XDC 


Collecting: A make or break month 
tor dealers XX 



Dressing for Ascot? Avril Groom has 
some das and donta — Xfi 


Am 

Books 

Baofla. Chm. CrowwwV 

* ^— m. -n- . , 

UOflQCtVTQ 

Fashion 

FwncnSirwFsmfc 

Foad&M* 

Gsrtonirft 
How To Spend# - 


-■(Him Morgan _ 
Mwenng 
Prpmm s a 
soon 

Wehaal TinwvMM 
Trawi • 

TV&fefe 


others in the Group of Seven industria- 
lised countries apart from Japan. 
Britain is to the fin^ - pTri^ l doghouse. Its 
bond yields have risen further than any 
to the G7, while its equities have been 
treated as though they fen into the 
emerging market category. They have 
fallen more than ah the others includ- 
ing the US, which is at a more 
advanced stage in the eco no mic recov- 
ery. Does it really deserve this dismal 
rating? 

For all the markets* post-February 
suspicions of Kenneth Clarke, UK fiscal 
policy remains undeniably tough. The 
new macho regime at the Bank of 
England is joining with the markets to 
stiffening the chancellor’s sinews on 
the monetary front The best of the 
disinflation story may now be over, but 
tire panic about renewed inflation is 
surely overdone. 

The one genuine cause for concern is 
the recent rise in earnings, which is not 
solely due to inflated City bonuses. But 
for the moment that looks like being 
off-set by the continuing squeeze on 
prices in the shops. And that great 
engine of Rririah mflatinn, the housing 
market, is quiescent It was good to see 
tiie Halifax Building Society revising 
downwards its house price forecast tbis 
week. As for those bottlenecks in indus- 
try. a market that worries about short- 
ages of steel, the product of an industry 
plagued with subsidies and Europe-wide 
overcapacity, is plain loopy. 


recent big cuts to the discount and 
Lombard rates, with a Christian Demo- 
crat boss, Hans Tietmeyer, to charge 
and federal elections due to October, 
looks highly suspect 
The economy, meantime, is recover- 
ing more quickly than expected after 
the mildest of recessions at the end of a 
huge boom. Capacity utilisation is ris- 
ing. The Bundesbank signally foiled to 
reduce inflation below 3 per cent to the 
recession. If this is the definition of a 
safe haven for bond investors, then the 
times are wildly out of joint 



1st since launch in 1972 
■list since launch in 1981 


1st since launch in 1984 

iSvSflaafidr’dw^b’ 

1st since launch in 1988 
1st since launch in 1990f 




A n this suggests that the 1 % 
point gap between 19-year 
gilt yields and German 
Bunds is excessive. Real 
bond yields in Britain and much of 
Europe are at attractive levels for inves- 
tors. Yet there is minimal activity in 
the cash markets and those investors 
who have chanced their arm in futures 
and options have retired hurt What 
could chang e market s en ti m en t for the 
better? 

Clearly there can be no going back to 
the peaks seen to 1993. The bond mar- 
kets were suffering from a speculative 
overshoot. Moreover, the rise in the 
yield on index-linked gilts points to a 
genuine increase to the global cost of 
capital. This reflects not only the struc- 
tural budget deficits of the developed 
world, but the increasing demands 
being made on the global pot by fast- 
growing countries in Asia and in the 
former communist bloc. 

Yet the present high level of bond 
yields is also a result of the immobilisa- 
tion of international capital flows. 
Investors in the world's last big creditor 
country, Japan, are sitting on a rising 
cash mountain. They worry about polit- , 
leal uncertainty at home and the weak- . 
ness of the dollar against the yen. The 
preconditions for both a bond and 
equity market boost may thus be a dol- 
lar recovery, prompted by further rises 
to US interest rates, and the reactiva- 
tion of Japanese capital outflows. Signs 
of slower economic growth to the US 
would also help. Until then keep the 
book on chaos theory beside the bed. 


C ompare and contrast with 
Germany, where fiscal policy 
remains loose and monetary 
policy locks increasingly sus- 
pect Having built its credibility on 
adherence to money supply targetry, 
and having argued last year that to 
abandon the credo would alienate the 
foreign investors who were financing a 
majority of the fiscal deficit, the Bund- 
esbank has suddenly lost its faith 
Whether you think that growth to M3 
really is excessive or not, the feet that 
the German central bank has changed 
its biggest tune when the money num- 
bers are soaring does Utile for its credi- 
bility. Moreover, the timing of the 


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Barbie and 
Sindy v Ken 
and Eddie 


Roderick Oram 


A s double acts go. 
Barbie and Sindy 
may be less edifying 
than Ken and Eddie, 
bat more electrifying to inves- 
tors. A rally of the dolls is 
underway with their respective 
parents, Mattel and Hasbro, 
battling each other for control 
of JW Spear & Sons, the Brit- 
ish toy maker. Spear’s stock is 
already up 58 per from its 
January low to 750p with every 
last Scrabble tile stiD to fight 
for. 

But is the stock market's 
uplift this week - achieved 
without assistance from Chan- 
cellor Kenneth Clarke or Gov- 
onor Eddy George - anything 
more than a cosmetic correc- 
tion? 

After the dreadful drubbing 
stocks and bonds suffered the 
previous week, the tide turned 
on Thursday in the futures 
markets. The cash markets too 
saw some genuine buyers 
attracted by near 9 per cent 
long gilt yields and 4 per cent 
dividend yields. 

The upturn proved fragile 
yesterday. No sooner did the 


latest US payroll figures hit 
screens at l unchtime , than 
stocks and bonds headed south 
again. Only when US bonds 
rebounded an some comforting 
words from the White House 
d id UK markets recover their 
poise. The FT-SE 100 index fin- 
ished with a 3L4 point gain on 
the week at 2J&7.& 

Few investors doubt there is 
ggn n tnp value in equities and 
gilts at thgsg Levels but n o ne 
are in a hurry to buy. "We feel 
slightly spoiled for choice," 
says David Manning , director 
of UK equities at Legal & Gen- 
eral, a large institutional inves- 
tor. But there is no need to 
r ush to invest in either market. 
"They will stHl be here in two 
or three months’ time at the 
same sort of levels.” 

One factor holding hhn back 
is tiie high yield on index 
finked gilts. Not only is the 4 
per cent return virtually the 
same as the stock market’s 
average dividend yield but it is 
also risk-free. 

As the first of the accompa- 
nying charts Show, the lnrier 
linked yield is high by historic 



standards apart from the 
period 1990-92 when it was 
boosted by sterling’s member- 
ship of rrm. ft is bard to 
envisage yields rising much 
further. Bat even if the bond 
market fails to rally and 
achieves only stability, equities 
could still gradually recover. 

“If fniiawd Hnlreri yields do 

stabilise and one looks out 
through 1991 and 1995 one can 
see an equity yield premium 
re-emerging fairiy rapidly," say 
strategists at SG Warburg 
Securities, thanks tn rapid divi- 
dend growth. 

As the second chart shows, 
the dividend yield has rarely 
been so close to the index 

linked gilt yield apart from the 
run up to the 1987 crash. Af 
current levels, equities are 
expensive but will become 
more attractive as dividends 
grow and the yield ratio rises. 

Such a modest Stock market 

improvement later this year. 


led by expending earnings and 
dividends, seems much more 
likely than one led by a h«nH 
n writrf rally ftTHng inter- 
est rates. Even though a long 
gflt yiel d of around 9 pear cent 
is discounting more inflation 
than most people expect, there 
are too many eccmranic uncer- 
tainties at home and abroad for 
in vest o rs to chase bond prices 


A parallel can be drawn with 
tiie market in mid-1965, says 
Vivian Bazalgette, managing 
director of Gartmore Pension 
Fund Mrmwgnro . Him jg a mfti. 
cycle reaction adieu the mar- 
ket is switching from being 
interest rate to earnings 
dri ven. We see scope for the 
market to rise to its former 
peak or even a little higher by 
the end of the year.” Gartmore 
has remained slightly over- 
weight in UK equities through- 
out the market’s 15 per 
correction from its Ifebruary 


HIGHLIGHTS OF THE WEEK 


Price 

Change 

1994 

1994 



y'day 

on week 

High 

Low 


FT-SE 100 Index 

2997.8 

+31.5 

35203 

2931.9 

Bsgafn-huntfag rally 

FT-SE Mid 250 fades 

3557.3 

-15.0 

41524 

3537.7 

Second Kne stocks neglected 

Altaian Water 

483* 

+19% 

607 

442 

tv Tacrof - oporasm 

Associated Nursing 

273 

-15 

300 

265 

£10m rights Issue 

Bass 

S30 

422 

619 

505ft 

Brokers ponttlwo 

Boots 

525 

+16 

601 

504 

Good results 

Enterprise Ofl 

382 

-17 

486 

383 

May M Lasmo bid terms 

Euro Disney 

386 

+20% 

457ft 

334ft 

Saudi Arabian favestmsnt 

General Accident 

587 

+46 

757 

537 

Hoars Oovstt/BZW buy notes 

Hal Engineering 

169 

-71 

320 

169 

Profits warning 

Nngflsher 

516 

-33 

778 

511 

Cautious «gn 

McAlpine (A) 

219 

+37* 

321 

219 

£26m rights issue 

Northern Ireland EL 

222 

-22 

301 

209 

Switching to “rec" 

VSEL 

910 

-68 

1093 

856 

Profits state this year 

Vospar 

737 

-30 

805 

681 

Loss of Austrsfien ountuwri 

1 


|1 AT A GLANCE 

V 


Most other UK institutional 
investors are also well repre- 
sented in d qmpsfic equities so 
they may not be a source of 
particularly heavy baying 
when the market begins to 
recover. However, there are 
stocks to cherry pick. Legal 
and General, far eraw ip fa Hb* 
those Mg international stocks 
in the Footsie which offer 
above average dividend yield 
and exposure to the US econ- 
omy. 

No cna n paiiiea reporting this 
week fit the profile aithnn gh 
Siebe fails only on the dividend 
count. The controls maker 
reported a 20 per cent rise in 
pretax profits for the year to 
£217201 and an 11-9 per nant 
UKr eas e in ftdtyear di vidend 
to Up for a gross yield of 2.4 
per rwit ftg underlying profit 
margins held up through the 


recession and it is now enjoy- 

fng a pnrift j/rtwth in demand tti 
♦Via Amurff-gg and elsewhere. 

The most pleasant results 
surprise came from Boots. 
Reporting pre-tax profits for 
the year up 19 per cent to 
24gUn and the dividend up 12 
per emit to ISp, it shook off 
some of tiie investor doubts 
which, have dogged it for the 
past 18 TwonBifl- ft baa yet to 
work out what to do with its 
struggling drugs business or to 
show it can make money in the 
do-it-yourself sector, but there 
is no doubting the strength, of 
its care retailing business. 

In contrast, elsewhere in the 
retail sector, Kingfisher deliv- 
ered a rather downbeat annual 
general meeting statement. 
First q uarter «aiaa volume was 
lower than a year earlier and 
its "ev er y day low-pricing" pol- 
icy is still not paying off con- 
vincingly. Its shares lost more 
ground and are now down 33 
per «mt from thrir high far hm 
year of 778p. 

Granada Group offered the 
most sparkling perfonnance of 
thp week. Hu Tnf'flTTrn pretax 
profits were un 51 per cent to 
giiBm and its dividend up 10 
per cent at 3.33p. Acq uisitions 

in sto r in g and tortile r an tat 

were big contributors while 
LWT, the television franchise, 
chipped in only one-mouth so 
far. 

Althoug h Granada’s results 
a ttest in part to the profitable 
audience for glamorous game 
shows, Barbie and Sindy are 
fighting an a higher intellec- 
tual plane. Not for them the 

fr ip pe r i es of outfits, accessories 
and hairstyle they normally 
crave. This time the y are aarfi 
after Spear's Scrabble fran- 
chise. Sadly, there would be lit- 
tle contest if they challenged. 
Ke n and Eddie to a game. 


Serious Money 

Investments that 
help you sleep well 

Gillian O’Connor, personal finance editor 


W here can you find 
a hiding place if 
you are scared 
by the inflation 
bogy? Utilities are tempting: 
their pr ofi ts are linked to infla- 
tion, they have been very 
heavily sold because of regula- 
tory frars, and they offer corre- 
spondingly good yields. But 
you need to pick the right ntTH- 
ties and the right companies, 

and they are relatively risky at 
g»» moment. 

Index-linked gflts and index- 
linked National Savings certifi- 
cates are a safer alternative . 
Both guarantee yon a real 
finfiatiootproerfed) return . But 
which should you choose? 

The current issue of indexed 
National Savings certificates 
(the seventh issue) offers a tax- 
free return of 3 per cent above 
the rate of inflation to those 
prepared to hang on for five 
years: there is no tnorrma as 

SUdL capital' and inwima 

f n w i index-linked gilts is infla- 
tion-proofed. And thnng h any 
" gain " is hw free, the 
income is taxed. So returns 
depend both on your inflation 
expectations and on your tax 
rate. 

At current prices, and 
assuming 5 per cent inflation, 
real (inflation-proofed) returns 
on most faHered stocks are 
around 33 per cent to people 
paying basic rate tax of 25 per 
cent Far people paying 40 per 
pant tar tiie comparable figure 
is around 23 per cent Unusu- 
ally the shorter dated stocks 
yield much tiie «rme as long er 
dated ones - which normally 
offer more because of their 
greater risk. Note though that 
the two stocks with high cou- 
pons (nominal interest rates) 
hcvt poor net yields, and 
abnnM be avoided, particularly 
by higher rate taxpayers. 

Given how close their yield 
is to that on National Savings 
rar liftrataa, indexed gilts look 
tiie better nhnire for most peo- 
ple. First, gilts are far more 
flexible: you can sell when you 
want. Secondly, there is at 
least a chance of a short-term 
capital gaiu If the gfit market 


eventually recovers some of its 
nerve. Tndered gilts have fallen 
along with the others this year 
- though by less. 

If you boy indexed gilts now 
yon face two possible out- 
comes. It inflation worries per- 
sist, you c an hang on until 
redemption, secure inan infla- 
tion-proofed yield of around 3 
per cent. If worries 

fade, you may be able to sell 
your indexed stock at a modest 
profit, and look for something 
else. Not perhaps the most 
ovffiting investment in the 
market But if you are inter- 
ested in sleeping well, you take 
Valium, not a pep p3L 


Many people think the UK 
equity market is cheap, but are 
scared of buying - because it 
might get cheaper stflL Market 
timing is one of the hardest 
aspects of investment. Some of 
the most successful long term 
in ve st o r s simply ignore it But 
few ordinary people can sus- 
tain such Olympian detach- 
ment. So when will share 
prices stop felling? 

The stnriCTimrkflt equivalent 
of the iMipirir Oraeto jj techni- 
cal analysis, or charting . Tech- 
nical analysis is a way of pre- 
dicting future price movements 
from past price movements. It 
niton uses recurrent patterns 
as a predictive aide. Hunk of 
the charts as a shorthand 
description of the past behav- 
iour patterns of investors. 
Chartists use these patterns to 
predict how investors are 
likely to behave in similar cir- 
cumstances In the future. 

For example, most investors 
sell a share when it goes below 
their buying leveL So heavy 
buying an the way up, is likely 
to be matched by equally 
heavy selling on the way 
down. Take Wall Street We 
know tii at three-quarters of all 
the money in US mutual funds 
(the American equivalent of 
unit trusts) has been invested 
for less than three years. So if 
Wall Street taka** pnnthw tum- 
ble, successive waves of selling 


by mutual fund investors could 

help it on its way until It 
toadies the level at winch the 
first of these neophytes 
bought. 

We Robin Griffiths of 
James Capel to give us a char- 
tist view of tiie Lo n do n stock- 
market He reckons that now 
that tiie FT-SE 100 index has 
moved down through the 3050 
level, it will keep falling until 
it bounces at 2800 or possibly 
2890. That will probably be in 
September, and the subsequent 
recovery could be sharp. 

Why 2800? When sterling left 
the ERM in September 1992, 
the FT-SE 100 index took off 
like a scalded cat and rose by a 
quarter; then it yo-yoed side- 
ways for six months, before a 
se co nd steep climb. The bot- 
tom of that six month corridor 
was 2800. The top of the second 
rffmh was 352fi Chart patterns 
suggest that once a price has 
lost more than half an earlier 
rise, it will go all the wa y bade 
to where it started. And FTSE 
has now lost more than half its 
rise from 2800 to to 3520. 

And why the alternative 
floor of 2890? This time we 
start measuring from the 2260 
level of FTSE when sterling 
left the ERM. From this van- 
tage point, shares are set to 
retrace half their subsequent 
gain. And the mid-point 
between 2260 and the 3520 peak 
is - 2890. 

This is not a Crash; it is not 
even a bear market It is a set- 
back, argues Griffiths. But do 
not expect a serious rally until 
gflts - which have led this fall 
- are generally perceived to 
have hit bottom. There may 
well be a small rally before 
then, but it will not last long. 
What wfll probably scupper it 
is the next sell-off on Wall 
Street Wall Street’s unusually 
prolonged rise suggests an 
unusually big correction in 
store. 

How seriously should you 
treat chart-based forecasts? 
The Delphic Oracle was always 
right. But faHihlp human inter- 
pretations of her meaning were 
Often fatally misleading 


Finance and the Family Index 

Moving Peps/Best savings schemes 


Week ahead/Dtrectors’ dealngs/Wafier companies — 

Company cflvidends/EXaiy of a private investor 

Investment costs: Peps/Group personal pensions 
Highest deposit rates/Armuity rates/CGT change 


111 

IV 

V 

VI 

VI 


AB houses seasonally k|, 1883 *100 
206 


UK uAlt 


NellrmstmoUt&B 

"MOO. 




May 1903 


House prices rise and fall 

Homeowners were given conflicting views of the housing market 
by two of the main building societies thra week. Halifax, the 
largest society, said that UK house prices fell a seasonally 
adjusted 1.6 per cent during May. white Nationwide said that Its 
Index showed a rise of 1.4 per cent, The monthly fafl In the 
Halifax index left prices unchanged from a year ago, but 
Nationwide reported an annual rise of 3.3 per cent from last May. 

Halifax said the 1.6 per cent fan was unexpected, but added 
that there was evidence that total housing market activity had 
fallen in May. ft said this could be due to the April tax increases 
and higher fixed rate mortgages. 

Unit trust sales remain strong 

Net unit trust sales feB last month to £976m but this was stfll the 
second highest monthly flgixe this year and the best Aprfi figure 
on record. Strong sales of unit trust personal equity plans (Peps) 
had contributed to making March the best month ever, with net 
sales of £l.37bn. But April 5 signalled the end of the rush to buy 
tax-free Peps for the last financial year. 

Private Investors accounted for 73 per cent of net sales last 
month. UK equity Income and international growth were the most 
popular sectors for private Investors, whBe institutions p referred 
the fund-of-funds and UK growth sectors. 

Angels can go on line 

Wealthy incfividuals interested in becoming "business angels" - 
taking a cfirect stake In 8 small business and possibly becoming 
Involved In Its management - have a new source of In form a ti on . 
VentureList is a computer database which wffl cany details of 
small businesses looking for capital. 

VentureUsfs prom ot e rs hope that a wide variety of 
organisations will join, including chambers of commerce, training 
and en t erprise councils, accountants, financial advisers, high net 
worth banking cfivislons and so on. Individuals wS pay about £5 
a tine to log on to the system end search for b us iness es 
meeting their requirements. Businesses wB pay S50 to have their 
detafis recorded, and £250 for a vetting process to check thek 
Suitability for business angel investment 

Smaller companies index slips 

Smaller company shares had another bad week. The Hoare 
Govott Smofler Companies Index (capital gams version) dropped 
1.2 per cent to 1687.63 over the week to June 2. 

Next week in Finance and the Family 

Out aerlee on tire true coats of Inv e stm e n t tacM ee ow of 
the lu wl controversial areas! Ufa kuurucc. Ufa nmnfit 
rnsnpenl e s have b e en WgtiMng agelnef Go vernm ent plena to 


florae there to disclose their costs . What sre they so worried 
about. We preside an m hnk a pms tew of fc el y reside there. 


Wall Street 


Why the Dow does not like Fridays 


T he first Frida y of th e 
month is not proving 
the best of times to 
invest In US stocks. 
Yesterday, the Dow Jones 
Industrial Average opened 15 
poin t s down — though latex in 
the morning it managed a 
lacklustre return into positive 
territory. Stock investors, 
however, did not see the sort 
at gains last week enjoyed by 
bond investors. 

It was at least better than 
recent first Fridays. In May, 
the Dow lost 27 points cm the 
fateful day, and tbeu a farther 
40 points the following Mon- 
day. A month before, it abed 
43 points (the market was 
dosed on the Friday, so the 
losses came on the Monday 
instead.) 

This is not some statistical 
oddity. The reason, each time, 
has been the same: the puNfl- 
catkm of monthly employment 
figures from the Department 

of Labour showing that the US 
is creating Jobs at a faster rate 
than anyone had expected. 

It may seem perverse for the 
stock market to drop on posi- 
tive news for the economy. But 

strong employment growth 


I t was ironic that Boots’ 
surprisingly good results 
this week - a 19 per cent 
increase in underlying 
prefits to £484m - should come 
a day after a disapp ointing 
trading statement from rival 
group Kingfisher. It demon- 
strated how retailers’ fortunes 
— 2m] marfcet s cBtimoit — mh 
chftng A in a year. 

This time last year, rivalry 
be t wee n Boots and Kingfisher 
- and in particular between 
Boots the chemists and King- 
fisher’s Superdrug - was seen 
as a microcosm of a wider 
clash c£ retailing philosophies 
for the 1990s. 

Kingfisher advocated a strat- 
egy of reducing profit margins 
to incre a se sales volumes and 
market share, adopting a pol- 
icy of "Everyday Low Pricing". 

Boots stuck to the margin- 
led approach, which says grow- 
ing profits is all about con- 
stantly en gineeri ng the profit 
merg ing upwards. 

In the first h alf of 1993, 
Boots’ shares underper fo rmed 
the market by 25 per cent, los- 
ing their presmmn to the stores 
sector, while Kingfisher’s 
advanced. Price-cutting by 
Superdrog aroused fears that 
margins at Boots the Chemists 
- responsible far 60 per cent of 


points to strong growth in con- 
sumer spending and, possibly, 
bigger wage rises as compa- 
nies compete for workers - 
both of winch in turn raise the 
spectre of accelerating infla- 
tion. In recent months, that 
has tended to gtve the bond 
market a fright (since Infla- 
tion erodes the value of fixed 
income Investments). Also, it 
adds to prcmint on the Fed- 
eral Reserve to raise US inter- 
est rales, which would both 
eat into corp o rate profits and 
da mp en economic growth. 

Adminirfr^ ^ fifflrifllc are 
Still nmtn faitnlTig wijiutgip 
tone that has come to sound 
like a stuck record in rece n t 
months. Just minutes before 
the latest employment figures 
came out yesterday, Lloyd 
Beatsen, the US Treasury sec- 
retary, was telling members of 
the Confederation of British 
Industry that the US economy 
was “in great shape - I 
haven’t seen it like this in 20 
years.’’ 

But the markets have their 
own ideas; the US authorities 
waited too long to raise inter- 
est rates (why else wonld they 
have put up rates four times 



since February 41) and could 
be forced into further rate 
rises to pot a belated brake on 
the economy. 

The latest employmait fig- 
ures provided ammunition for 
both sides. The number of new 

jobs created in May, at 
191,000, was around 100,000 
fewer than the markets had 
been expecting. But the April 


job numbers were revised op 
by 91,000, and t he ov erall 
unemployment rate dropped to 
6 per emit from 6.4 per cent 
the month before. While bonds 
rallied a point out of relief 
that the picture was not 
worse, equities managed only 
a half-hearted end to a half- 
hearted week. 

The stock market bad spent 


tiie previous days waiting aim- 
lessly for the jobs figures. One 
stock that managed to defy 
this torpor was Microsoft, tiie 
software group. Its shares con- 
tinued a elimh begun in mid- 
May, when it was first 
announced that the company 
would be included in tiie S&P 
500 index of leading stocks. 

Breaking into a widely-fol- 
lowed index such as tiie SAP 
500 can do wonders for a com- 
pany’s investment credentials, 
even when the company is as 
well-known as Microsoft. 
Aronnd a third of the shares 
owned by US pension and 
endowment funds (equivalent 
to 9400fan worth of equities) 
are held “passively* - the 
institutions hoMfo g them are 
trying simply to track the per- 
formance of a stock market 
index, not to beat it To do 
this, they simply buy all the 
stocks in proportion to their 
weightings in the index. 

So making it into an index 
creates an instant new market 
for a company’s shares. The 
people who ran indexed funds 
“aren’t employed to be over- 
weight or underweight Da a 
particular stock!” says John 


Webster, a consultant at 
Greenwich Associates, a lead- 
ing US investment consul- 
tancy. “If they’re under- 
inverted, they’re taking a bet” 

It may seem surprising that 
Microsoft - worth $30bn - has 
not been In the S&P 500 
before. The problem for Stan- 
dard & Poor’s, which runs the 
index, has been that only a 
small proportion of the compa- 
ny's shares have beat avail- 
able to outside investors. Now, 
it says, there are enough 
shares available to m«fce it a 
candidate fra the index. 

Apparently, though, there 
stfll are not wumgh a vailab le 
for everyone who wants them 
to buy without driving up the 
price. By yesterday lunchtime, 
Microsoft’s shares had climbed 
to $53% - a gain of 14 per cent 
per cent since ll May. The 
company Joins the index at the 
dose of business on Monday. 

Richard Waters 

Monday Closed 

Tuesday 3758^7 + 133 

Wednesday 376(183 + 2.46 

Thursday 375839 - uj 4 

Friday 


The Bottom Line 


Boots pulls up its margins 


Boots group’s operating profits 
- were under threat. 

The picture a year on is 
rather different. Kingfisher’s 
shares have slumped from 778p 
last December to 51 6p, after 
two disappointing trading 
statements, and results sug- 
gesting its margin sacrifices 
were not being compensated 
for by volume increases - at 
least not yet. 

Boots’ shares have also 
fallen since December, but by 
much less, and at 525p are cm a 
considerably higher rating. 

Results from Boots the 
Chemists on Thursday showed 
it had withstood competition 
from Superdrug, and pushed 
up its operating margin yet 
again, from 10.7 to 11.5 per 
rant. That has more Bum dou- 
bled from 5 per cent in the 
mid-1980s, and Is getting into 
territory previously occupied 
only by Mark* and Spencer. 

BTC reported a sales 
increase for tha year to March 
31 of 5.4 per cent; Superdrog a 




v I Stef J rVT.rf.4f ^ j 



fall in sales in the first quarter 
of 0.7 per cent 

The reasons for the reversal 
of fortunes are complex. But 
while it is too early to write off 
Kin gfisher chairman Sfr Geoff- 
rey Mulcahy’s “value retailing" 
approach, Boots' success does 
suggest the Mulcahy way is 
not tiie only way. 

Boots, however, differs in 


important ways from King- 
fisher. First, it haa tftp advan- 
tage when it comes to pushing 
up margins of vertical integra- 
tion. Some 43 pa- cent of Boots 
tiie Chemists’ sales are own-la- 
bel, which earn a higher mar- 
gin. as the retailer can boy 
them mnn e rhpgp ly thaw marm- 
facturers’ brands. 

Much of that own-label prod- 


uct comes from Boots’ own cos- 
metics and healthcare facto- 
ries, now grouped in a separate 
dxvisftm. Boots Contract Manu- 
facturing. BCM sells 60 per 
cent of its output to Boots the 
Chemists - and lifted operat- 
ing profits nearly a quarter 
last year. 

Boots Healthcare Interna- 
tional, the over-the-counter 
drugs division, also supplies 
Boots the Chemists with blg- 
sellers such as Optxex, Strep- 
sils and Nurofen. Healthcare 
International more thaw dou- 
bled its profits and is ear- 
marked for expansion. 

A second difference is that a 
question mark hang s over one 
of Boots’ main divisions - 
pharmaceuticals - and several 
of its retail chains are in rather 
worse shape than Kingfisher 's. 

The withdrawal last year of 
heart drug Manoplax robbed 
Boots Pharmaceuticals of 
annual sales which analysts 
had forecast might reach 
£LB6ni and left it too email to 


compete in a rapidly-consoli- 
dating global drugs industry. 
Boots is reviewing its future 
and examining gale, merger or 
asset-swap possibilities. 

The perfonnance of the other 
retail businesses, esp eciall y 
those acquired in the 1969 take- 
over of Ward White, is patchy. 
Rationalisation of the DIY joint 
venture Do It All should 
reduce losses, and Halfords is 
recov ering strongly. But Chil- 
dren’s World and Fads made 
losses, and the task is still to 
raise the per fo rmance of these 
businesses to acceptable levels. 

Investors might- he ca utio us 
of Boots until the future of the 
pharmaceuticals business is 
resolved - analysts fear a yi* 1 
might be eaming&dflutive, ft 
would, however add to Boots’ 
£350m cash pile, providing 
opportunities for expansion, 
for example of Healthcare 
International. 

Boots also says it has “no 
philosophical objection” to 
handing cash back to share- 
holders. Either way. Boots’ 
success in confounding its crit- 
ics during a tough period sug- 
gests it is likely to remain one 
of the market’s more solid 
longterm performers. 

Neil Buckley 


i 







WEEKEND FT III 



FINANCIAL TJLMES WEEKEND JUNE 4/TUNE S 1994 


FINANCE AND THE FAMILY 


that Putting life 


back into 
your Pep 

Scheherazade Daneshkhu on the 
best ways to change your plans 



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r.a 


I f you are happy with 
your personal equity 
plan, read ho Anther. 
But if you are unhappy 
with your choice - hie 
one Weekend FT reader whose 
independent adviser dFA) told 
him he needed a Pep, but that . 
it did not matter what went in 
It -read on. 

Fortunately, investors 7 who 
are disappointed with the per- 
formance of the funds or 
shares in their Peps are not 
locked into them. They can 
t ransfe r to a nother plan man- 
ager without affecting their 
annual allowance of £6,000 in a 
general Pep and £3,000 in a shir 
gle companypep. 

These amounts' may seem 
relatively small but, by now, a 
married couple could have 
invested- £110,400 since Peps 
began In January 1087. Snce 
all income and- capital gains 
are tax-free, the sums involved 
are not inconsiderable- . 

■ Why transfer? 

The Pep transfer market is 
growing rapidly. Independent 
adviser John Spiers, of Best 
Investment, mt pb'hwg "There is 
definitely more Pep transfer 
business than before; the fast- 
est growing part of our busi- 
ness is people wanting advice 
an their existing Peps.” Mat- 
thew Ozr, of stockbroker Ba- 
tik, agrees : "We are taking a 
lot of transfers. For each Pep 
going -out, there are a dozen 
coming m.” 

Why are investors doing it? 
Soma win -have been disap- 
pointed, with' the performance 
of the Pep or find their invest- 
ment needs have char^gwi. Oth- . 
era, who h ave subs cribed to. a . 
variety of /Hfiferreit plan man- 
agers over the years, may now 
find the paperwork too much . 
and yearn fin a simplified sys- 
tem offeredraderthe umbrella 
of a single ’plan manager,- 


either a stockbroker or anIFA. 

Robert Noble Warren, of fee- 
based IFA Murray Noble, says: 
“The major cause for Pep 
transfers appears to be dissat- 
isfaction with the administra- 
tion and a lack of personal ser- 
vice. The high, street banks and 
one or two large life companies 
seem to have the worst of ft/* 

■ Before doing it... 

A Pep transfer costs money 
and will take around four to 
six. weeks to complete, so it Is 
not a decision to be taken 
lightly or often. Spiers says 
that If your worry Is perfor- 
mance, first check how the 
fund or shares have done cam- 
pared with a relevant Index 
such as the FT-SE-A All-Share 
(Money Management Tnagnwng 
publishes performance tables). 

If there is significant under- 
performance over a number of 
years, see if there is a pardon- 
able reason. Recovery funds or 
UK gmaTipr companies are 
cyclical stocks which win not 
do weH in times of recession 
but should outperform when 
recovery is under way. 

Some ' fund ' management 
-groups allow you to switch out 

Of <me awfoT and into a ri nth an- 

in their Pep. But if you are 
unhappy with the group. tteelf, 
or want someone else’s fund, 
this facility is of little use. 

■ How to do it 

Contact tile new p lan manage r 
for transfer forms. According 
to Roz Harder, of Chase de 
Vere, the new manager should 
handle the transfer process for 
you. There may be three forms 
to fill to: one to notify the obi 
manager that you are- transfer- 
ring oto; another to the new 
manager saying you want to 
transfer, and possibly one tell- 
ing the latter what you want in 
your new-Pep. -- 
Do not on any account tell 



your existing manager that 
you want to dose the Pep. He 
mi gh t cash your bni«Uwg « — 
and you would lose the Pep 
Status Ctn the wmnrmfc V w*iri [ so 
wasting the allowances that 
allowed you to build it up. 

■ What you pay 
This depends cm the type of 
holding you own. Some invest- 
ment trusts and a few unit 
trusts charge a transfer fee, 
usually between £25 and £50. A 
few funds have withdrawal 
charges on their Peps far up to 
five years as a quid pro quo for 
a lower initial charge (these 
include Fidelity, Gartmore, 
Guinness Flight, Scottish Equi- 
table & M&G’s Income fund). If 
you hold individual shares, 
there win be dealing charges. 


IF you are transferring from 
one unit trust to another, you 
face initial charges of up to 6 
per cent (although some IFAs 
will be aide to reduce this cost 
by passing on to you some or 

all of the n rawmiaginn Tt ittII Into 

this figure). Urofewaga is the 
main cost if you are buying an 
investment trust Pep, but there 
are many execution-only or 
discount brokers which charge 
lower commission than the 
average 1.65 pa- cent 
A more expensive option. - 
but one that, ultimately, is 

n d m i n uJi - aL i im Ty gfanpltw — is 

to transfer all your Peps to one 
manager. Some brokers offer 
an umbrella service; others 
will suggest a self-select Pep 
but-may advise you an what to 
put In ft. 


Apart from the brokerage 
fee, there are lots of charges 
for which you should watch 
out What is the charge for 
opening the plan and its 
annua l fee? Is than a dividend 
collection charge? Is there a 
char ge fox wJinig imfr trusts? 
Of there is, see if your existing 
manager will transfer cash 
rather than unite to the new 

manager). 

For the unit trust devotee, 

SfcanrKa life's Multipep is an 

umbrella-type Pep for unit 
t rusts . Investors can switch 
between about 30 f unds at very 
low cost, but Skandia imposes 
an additional 0.5 per cent 
animal fee on top of the under- 
lying fund and charges for col- 
lecting dividends. 

■ Pep charges, page VI 


First for savings 

Trusts top insurance , says Scheherazade Daneshkhu 


U nit and investment 
trust savings 
schemes offer far 
better returns than 
their life insurance counter- 
parts. Ova: 10 years, the pay- 
out on the top-performing unit 
trust was more than double 
that of life-related policies. 

A survey in Money Manage- 
ment magazine asked fund 
m a na gem e n t groups to provide 
returns based on premiums of 
£50 quoted net of all charges. 

Savings schemes allow those 
who cannot afford to put hi 
large, tump sums to gain expo- 
sure to equities through small, 
regular investments. They 
have been a feature of life 
plans for over 100 years but are 
a for more recent innovation 
for collective funds. 

The higher-charging struc- 
ture of life policies contributes 
to the significant difference in 
returns. The top-performing 

fluid for both unit trust 
savings plans e nd maximum 
investment plans (MIPS) - the 
standard type of long-term, 
nnit - HnirpH investment life pol- 
icy - over 20 years is M&G 
Recovery (not shown in the 
table); but investors in the unit 
trust received £152459 after 20 
years compared with £124,645 
in the mtp. h they had yhfo**" 
the best-performing endow- 
ment policy (Tunbridge Wells 
Equitable), they would have 
seen a pay-out of only £64,635. 

Comparison between collec- 
tive and life policies is difficult. 
though. Unlike collective 
funds, endowments will pro- 
vide some life cover and 
returns are tax-free. The latter 
is is not the case with collec- 
tive funds unless they are held 
in a personal equity plan. 

Moreover, there are huge 
variations in performance 
between dif fe rent wanagament 
groups. The best unit-trust: in 
the UK growth sector over 10 
years - Fidelity Special Situa- 
tions - paid out almost double 
the amount offered by Save & 
Prosper Special Situations, the 
lowest performer. 

Top-performing unit trusts 
tend to be specialist funds. 
Gartmore Hong Kong is a sin- 
gle country fand to which few 
widows and orphans are likely 
to have been attracted. 

A fairer comparison for a 
with-profits endowment, which 
is a broadly-based fund aiming 


How do savings schemes compare? 

Manager/tund 

5 years £ 

Investment manager 10 yearn £ 

Unit trust regular savings plan 

Gartmore Hong Kong 
Mercury Gold & Genrt 
bwesco UK & China 
S&P SE Asia 

Gartmore Pacific 

8,528 

*302 

8.038 

7^35 

7,207 

Gartmore Hong Kong 
S&p SE Asia 
Invesco UK & China 
Lincoln Natnl N Am 
Baring European 

29,623 

26,231 

21^92 

17,799 

17,406 


Investment trust regular savings plan 


HTH Pacific 

F5C Entarprisa 

HTR Bankers 

FSC Emerging Mrkts 

F&C Smaller Cos 

7.010 

6,156 

6.043 

5^70 

5,905 

HTR Bankers 
HTR City of London 

F&C Smaller Cos 

F&C Pacific 
Fleming Enterprise 

19.656 

17,740 

17.51B 

17,327 

17.075 

WHh profits endowments 


n/a 

Swiss Life 

12,312 



Royal London 

12,111 



Tunbridge Wefls Eq 

11,560 



Equitable 

11,494 



Commercial Union 

11,475 

Maximtm Investment plans 


n/a 

ComhIB UK Equity 

13,903 



HiB Samuel Financial 

13^41 


Axa Eq&Law Higher Inc 

13,188 



Prov Cap Pacific 

13,170 


Confed Ule UK Equity 

12,712 

Unit trust Pep regiiar savings 

S&P SE Asia 

7,273 


n/a 

ParpeH inti Em MWs 

6,655 



PerpeU Far Eastern 

8,551 



Abtrust FRr E Em Mkts 

6,001 



FramUngton Hlth 

5,770 



Investment trust Pep regular savings 

F&C SmaHer Cos 

5,990 


n/a 

F&C Pacific 

5^20 



Fleming Enterprise 

5,401 

- 


F&C inti Gen 

5^79 



Fleming Fledgling 

5J2B9 




The table aho*s the returns on E50 a month invested oner Sue and to yean to March t 
IBM. KBP 3 figures shew the tap funds across a* sectors which matured on February 1 
7094. 77m same etta applet to the best actual maturity values lor with-pnjOs figures: 
Wtth-pmSts figures refer ro a potty bakmglnff to a mam. aged 30 noxt birthday, paying a 
true pres pramtan of £10 pm (1963-84). ESOpm (1968-91) and ESQpm onwards inclusive 
of potty laa and other charges. Source: Money Management 


for low volatility, might be 
with the UK general unit trust 
sector. Even here, though, the 
unit trust returns are better. 

Pay-outs from the top-per- 
forming endowments over 10 
and 20 years (Swiss Life and 
Tonbridge Wells Equitable) 
were £12,312 and £64,635 but 
M&G Midlan d &> General, the 
best UK general unit trust over 
both periods, provided returns 
Qf £14^90 and £135,220. 

Interestingly, the survey 
showed that the top unit trust 
sayings scheme bettered those 
of investment trusts over five 
and 10 years, although the 
reverse was true over 20 years. 
Lump sum Investments usu- 


ally show outperformance from 
investment trusts. Since much 
of this has been due to a nar- 
rowing of the discount, inves- 
tors in. savings schemes have 
not benefited to the same 
degree. Investment trust 
savings schemes are also far 
fewer than unit trusts. 

The survey also covers five- 
year results for Pep regular 
savings plans. Re-invested 
gross income boosts the perfor- 
mance of Peps compared with 
collective funds outside them. 
But the gross income effect is 
negligible on overseas funds 
with lower yields. 

■ See also Page 13, FT Guide 
to Inve s tment Trusts 



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MORGAN GRENFELL 
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•rav-^wao 


IV WEEKEND FT 


FINANCIAL TIMES 


WEEKEND JUNE 4 /JUNE 


5 1994 


FINANCE AND THE FAMILY 


Directors’ transactions 


True to form 


F irst impressions are 

nftm rnMftgfflng , anil 
the water sector 
bears oat **i»g maxim 
folly. Afte r a disappointing 
year, water stocks have outper- 
formed the FT AltShare by 
almost 7 per cent over the past 
month. While same may put 
this down to optimism about 
the present price review, Rob- 
ert MiEer-Bakewell, a£Na±West 
j Securities, paints to the 6 per 
cent Can in the ATI -Share over 
the same period, fi would seem 
thp sector rfM ifftu* more than 
tread water while the stock 
market lost ground. 

Water companies have not 
always been such laggards. 
Indeed, shareholders have done 
rather wen out of these stocks 
since privatisation in 1988, 
with the sector showing a 37 
per cent market premium over 
the five years. Dividend growth 
has been equally impressive, 
with an average cumulative 
increase of 40 per cent since 
1988. The question is whether 
fiiis trend Is likely to n on tm n p 
after the review which will 
decide the rate above inflation 
by which companies win be 
allowed to increase prices. 

From the bearish noises 
in»to in recent months by Ian 
Byatt, the industry regulator, 
the boom days seem to be over. 
The review, to be made public 
at the end ctf July, is expected 
to force companies - and thus 
investor s - to take an more of 
the financial burden arising 


Directors can, from time to 
time, prove rather predictable 
and this week’s dealing is an 

Bwinplp 

□ Elliot Bernard's property 
group, Chelsfidd, came to the 
market in December last year 
and, with the exception of a 
dip at tho end of March, has 
held up welL Michael Broke, 
deputy ftbairm an, baa sold 
250.000 shares at 170p, which 

more than halves his holding. 

□ Shares In Tlton Holdings, 

specialist building materi- 
als company, have been clim- 
bing steadily over the past 
three years. 

Many directors were buying 
shares at around 66p in June 
and July of 1891 at a time 
when these were, largely, 
friendless. Since then, there 
have been obvious temptations 
to take profits, and few direc- 
tors have been unable to resist 

The latest sales, at 2l5p, 
were executed by Alan Good- 


man and Alan M nllwnrhi p 
After Goodman's sale of 150,000 
shares, he is left with just 

113,000, while Mellenrhip has 

cut his holding to 256400. 

Consensus and earnings fore- 
casts tor the year to September 
1994 suggest a prospective p/e 
of 15 this year, falling to 14 In 
1885. 

□ Far Eastern stock markets 
have tumbled faster than their 
western counterparts and. 
Inevitably, fiiis has taken a toll 
on Standard Chartered. John 
McFariarte t«b spent fee past 
three mrmHm buying shares, 
his latest purchase of 45,000 at 
228p adding to the 100400 he 
bought a week previously at 
271p. Consensus dividend fore- 
casts for the year to December 
1994 put Standard Chartered 
on a prospective dividend yield 
of 44 per cent, rising to 5 per 
rent the year after. 

Vivien MacDonald, 
The Inside Track 


DIRECTORS' SHARE TRANSACTIONS M THUR 

OWN COMPANIES fUSTED A WW) 

No of 

Company Sector Sham Value dn actora 


ChatofMd nop 

Engfish China Clays Bdn 


ISA Wemattonal , 


MacFfirians 

Mid Wynd Inv. That 

_PP&P 

hvT 

PAPF 


Lam 

Reed Internationa] 


Tlton HoMags 

mnUnlrihga 

BM&M 

hrar 


. FdMa 

Watsa City of London 

.-.Prop 

Yoddyda . 

Text 

PURCHASES 
AGHokfings _ 

_PP&P 

Bank of Scotland 

_Bnks 

Caro UK 

— hath 

Corporate Services 

_SSer 

CourtauJds Toxties 

—Text 




-.T«od 

Forward Technology 

-ESEE 

GR Holdings 

_Lam 


Dbt 

Lucas tadustries 

-EngV 

Marks & Spencer 

_ RetG 

McLeod RusaeS HMg 

.Chem 

Royal Bnk of Stand. 

_ Bnks 

RTZ 


Standard Chartered Bnka 

Tffiwan Inv. Trust __ 

— frivT 

Tomkins 

Unitech 

— DM 
■FAFF 


Wills Carroon 

Wtton Investment Co— 


250000 

426 

1 

21,068 

83 

1 

613^59 

785 

4 ( 2 *) 

200400 

460 

1 

30,000 

122 

1 

108433 

286 

2 

40.000 

106 

2 tn 

6,000 

53 

1 

155400 

333 

2 

20400 

42 

1 

14,485 

144 

1 


500 

1 

20400 

50 

■ 1 

20,000 

30 

1 

15.000 

29 

2 

3 , 472,840 

148 

3 

25400 

14 

1 

2400 

11 

1 

a'ooo 

11 

1 

25,000 

30 

1 

25,000 

10 

1 

20400 

19 

1 

10400 

48 

1 

7.012 

13 

1 

10,000 

40 

1 

32400 

35 

2 

7,500 

31 

1 

3400 

27 

1 

45,000 

* 103 

1 

36400 

33 

1 

7,468 

18 

1 

5.000 

16 

1 

7400 

13 

1 

5,000 

11 

1 


Water needs watching 

With a price review looming , Peggy HoIBnger feels caution is required 


from increasing environmental 
legislation. 

The water sector has had a 
fairly gentle ride since being 
privatised. Then, the govern- 
ment feared potential investors 
would be frightened by tile 
huge spending required to 
bring the long-neglected water 
companies up to date. To woo 
ihwn, large rfureVs of debt 
wcte eliminated mat the com- 
panies endowed with generous 
price increases to 1986. Inves- 
tors were tempted further by 
under-priced shares the 
promise erf healthy yields. 

Those reasons for investing 
in water companies have 
largely disa pp e a red now. Byatt 
h«g matte clear that he sym- 
pathises with consumers 
unhappy at paying an average 
57 per cent increase in water 
bills since 1990 while seeing 
aggregate " company profits 
more than double. He 
repeatedly, that the sector will 
now have to- call on its own 
resources to fund commit- 
ments. 

Bill Dale, an analyst at S.G. 
Warburg, estimates that water 
companies will he allowed 
average price increases ot just 
one percentage point above 


Wht f w . 


• «• >. '-aw. 


• • VO 

,..K 


la ted income stream, will be 
flat earnings for the next five 


year, analysts are not expect- 
ing cost-cutting to fuel divi- 
dend rises to those ot 
first five years. Estimates are 
for real dividend growth to 
slow hum 6 per cent real under 
the first price regime to about 
3 per cent a year until year- 
2000. Use real slow-down will 
begin after 1995 when the new 




h>H«fiom l against" an average of 
five in the first price review. 

Meanwhile, capital spending 
requirements have spiralled 
due to increasing regulation 
from Brussels. Analysts esti- 
mate the sector faces costs of 
up to £l6bn over the next five 
years, against £J3.Shn to 1995. 

So, while water companies 
are faring some of their heavi- 
est obligations, the regulator is 

threatening to bring down the 

rate of return allowed on 
assets. "There is a huge 
income gap," says fai* , "and, 
somehow, that gap will have to 


be made good.” But it is dear 
that foe companies' efforts to 
build nan-regulated income 
streams wifi not bridge that 
gap in the foreseeable fixture. 
This year, the sector is forecast 
to incur a deficit of up to £7Qm, 
TTM-iiniing one-off costs, from 
nan-regulated activities. 

The difficulties will be aggra- 
vated by the costs of financing 
the spending programme. 
Gearing, now averaging 20 per 
cent for the sector, is expected 
to readi TO to 75 per cent The 
knnric-on pfftvt at grin, com- 
bined with a more tightly regu- 


years. 

Banting s have never been 
important to water- watchers, 
(rinw> so much is dictated by 
foe regulator. "No one would 
value highly an earnings 
stream which can be regulated 
away at the whim of one indi- 
vidual,” says Dale. 

Dividend growth and yield 
have always been mare impor- 
tant. Yet, with the pressures 
faring water companies, 
growth is going to be more dif- 
ficult to achieve. 

Dividend cover, now three 
rtnwa against a market average 
of twice, is likely to be th e firs t 
sacrifice. But the real returns 
will have to come from cost- 

it^EI i tig . 

H the ™mpanie<; are to fund 
investment needs and provide 
snb'd returns to shareholders, 
the only option. Is to beat the 
efficiency targets built Into 
Byatfs price allowances. This 
win be no easy task and, says 
MQler-Bakewell, “will involve 
questioning some of the die- 
hard procedures in the indus- 
try”. 

Given the difficulty of find- 
ing bigger cost savings every 


tal spending commitments 
begin to take effect 

Despite this, analysts main- 
tain that water stocks will be 
flhv to increase dividends fes- 
ter than the market With 
lower dividend cover, corpo- 
rate HE wifi have less room for 
manoeuvre than the water sec- 
tor. Thus, the 44 per cent pro- 
spective market yield l ooks 
less secure in the medium term 
as companies will be forced to 
re-bufld cover. 

All this means that water 
companies now enjoying pro- 
spective average yields of 64 
per are likely to retain 
their attraction as income 
stocks. But investors should 
approach the sector carefully, 
given the uncertainties 
imposed by the price review. 

In the end. longer-term value 

depends on an investor's view 
of the management “Every- 
thing will focus on cost-cut- 
ting,” says Dale. “Investors 
should be ashing themselves 
which companies are capable 
of delivering efficiency gains in 
an increasingly tough regula- 
tory regime.” 


nnumf UrOQOl, 


•-■.Tr'ro :"!*i 


- •' ■ ' -«• % v •• 

Stave prfevfBtatKwXp tte: ■*- « -!•? 
FT-S^AAfi-ShemfcidaX, 

■ * * • 


The week ahead 


Vodafone rings the changes 


% S«AMCp^Ktl«aM. v 




Vaiuo sxpnaMd In COOOs. This Bat contaire ai transactions, Indudbig the exarcfcra of 
option* O * 10014 atriraequartfy «o*d. wth ■ vnJua aw £10500. Mamatlon ra taaa ad by 
tta Stack Dd wig i 23-27 May 189*. 

Souo#: Oboctu* Ltd, Tho Irakis Track, Edtobugh 


□ VODAFONE, the UK mobile 

communications group, is 
expected to report full-year 
pre-tax profits of between 
£35Qm and £37Qm on Tuesday, 
compared with last year. 

Vodafone's shares have been 
depressed by the recent mal- 
aise fo the telecom sector. 

□ BAA announces its results 
on Monday when pre-tax prof- 
are expected of around £320m, 
up from C2aswi the previous 


year, reflecting buoyant airport 
passenger traffic. 

□ ANGLIAN WATER is expec- 
ted to return a 2 per cent 
advance to £190 J2m when it 
announces armnnl results on 
Tuesday. There will be little to 
shock here, with <wiiHng 
industrial demand offsetting 
price increase gains. Anglian is 
expected to be somewhat 
behind the sector in cost-cut- 
ting in sp i te of its corporate 
shake-up. The dividend is 
wqwriMri to increase by 7 per 
ceut to 22.7p. 

□ NORTHERN FOODS, the for- 
mer stock market favourite, is 
expected to show a modest 
increase in pre-tax pro fits fr om 
2153m to between 2155m and 
£160m when it announces its 
foil-year figures on Wednes- 
day. The results will reflect 


ADVERTISEMENT 


continued probl ems in the 

moot business arid tte Hnrlmg 

of doorstep milk deliveries. But 
another good performance is 
expected in duRed foods. 

□ BARATj A poor pwftHiiifliirr 
by its data n nmmnnicfltinTu; 

business is expected to hold 
hark results at Baral, which 
also reports on Wednesday. 
Flat pre-tax profits of around 
£51in are expected before a 
£20 ,2m provision announced 
already. 

□ ELECTRO COMPONENTS: 
On thp samp day, Electrocam- 
panents is expected to report 
full-year pre-tax profits of 
around £71m compared with 
£5L9m the previous year. The 
group should have been a ben- 
eficiary of the recant uptam in 
i ik inaunfarlnrin g activity. 

□ SCOTTISH Hydro-Electric; 
Also on Wednesday, Scottish 
Hydro-Electric is expected to 


report pretax profits of 2165m 
compared with £146.4m last 
year. 

□ PILKINGTON: On Thursday 
Pflktogton, the gl»« group, is 
expected to amwimcaii that 
pre-tax profits more than dou- 
bled in the year to March to 
around 2105m, compared with 
£41m in 1993. The figures will 
be buoyed by exceptional 
items, primarily the proceeds 
from the sale at spectacle lens 
business. Sola. Profits before 
exceptional items should 

amount fo an * mil Fur- 

ther e x cept i onal pro fi t s will be 
written into present-year fore- 
casts following Friday's sale of 
PDMngton Insulation and the 
expected flotation of its Aus- 
t ralian mter a rifat 

□ CHUBB SECURITY: Also on 
Thursday Chubb Security, the 
electronic alarm and locks 
group, is expected to reveal 


pretax p ro fi t s of around £78m 
(£642m) for the year to ApriL 
Tfce company came out with 37 
per cent p r o fi ts growth at the 
Interim stage. 

□ PO WKRGEJFS full-year prof- 
its an Thursday are expected 
to have increased to about 
£470m from 2425m last, year 
helped by fuel and other cost 
savings. 

□ LONRHO’S aloof approach 
has left the City with little 
guidance on the inter im results 
out on Thursday. Estimates 


are for pretax profits before 
exceptional items rising from 
£22m to 232m. The City will be 
looking for insights into plans 
for revamping Lonrho’s expen- 
sive financing arrangements. 
The dividend is likely to be 
maintained at 2p. 

□ BRITISH LAND, the prop- 
erly company healed by John 
Bitblat, is likely to announce 
on Thursday that its asset 
value has increased from £347 
to about £4 a share in the year 
to March. British Land’s rela- 
tively high gearing has helped 
it to benefit strongly from the 
sharp increase in the value of 
investment property over toe 
past year. Pre-tax profits, 
which last year stood at 
£2&5m, are likely to increase to 
around 250m. 


BrMolEtfMinaPoat 


'B e UIL‘DI9{g SOCIttJ I9{V t ES f r t U t E9{n; e F£ t lWCS 


RESULTS DUE 


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FINANCIAL' TIMES WEEKEND JUNE 4/JUNE 5 1994 


WEEKEND FT V 




FINANCE AND THE FAMILY 


ifci'.SS'&V- 

'jr*... I«.r. ' 

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of a Private Investor / Kevin Goldstein-Jackson 


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or many years, I have 
invested directly, in-a 
number, of foreign 
companies. With -the 
UK stock martet containing to 
be jittery over political and 
economic prospects, inv esting 
overseas , has increasing attrac- 
tions. 

Specialist unit and- invest- 
ment trusts are useful lor gain- 
ing an interest in a wide 
spread of companies, particu- 
larly in areas where it is.diffi- 
cult for a private inve^ra to 
make direct Investments. But 
there is stfll- nothtogiflre the 
thrill of fijafflng an outstanding 
foreign company and buying - 
diares IniL 

The investor has a direct 
relationship with the company 
and, if its shares race upwards, 
the effect on a small share 
portfolio can be considerable. - 
U Is also easier to find one or 
two good companies rather 
than, say, 100. This is why, 
even if a trust chooses a com- 
pany where shares soar by 
more than 80 per cent, the 
chances are that most of the 
other shares in the trust’s port- 
folio will perform less well; 
thus, the out-performance of 
one company -mR be watered 
down by the rest 
This Is not 'to say that an 
investor- should ' phi all his 
hopes on one or two shares; 
even if the shares are. chosen 
carefully, Oitng n can stQl go 
wnmg unexpectedly. There are 
extra hazards with foreign 
investments, including cur- 
rency fluctuations which can 
affect an investor’s profits dra- . 
statically. 

My first overseas invest- 
ment, many years ago, was in 
a gmaTl fbmndtan mTTrhrg- com- 
pany quoted an the Vancouver 
Stock Exchange. 1 was working 
in the Sultanate of Oman at . 

the tbnmmif 'tfiAr B urff/f nn way 

I could keep completely up to 
date with* the^ company's share 
price. ; ■ 

Ahhohgii 1 had a subscrip- 
tion to a Canadian newspaper, 
it took same time to ar riv e. 
The shams cost me around 45 
Canadian cents each. I sold . 
them for more than C$8, only 
to see than rise even further 
before they plummeted rapidly. 

I b»d a lucky, and profitable, 
escape •' ‘V'... - '. '•••.. 

Despoteisuch *an entaate ; 
ble experiatte, t have not Ven- 
tured near, the highly-specula- 
flve Vancouver anfait agam. 
Perhaps if l hved in Canada 
and could monitor market sen - 
ttoent, rumours and share 
prices doeeljr, I mieht well be 
tempted. ' 

This highlights- ana ; of the 
main problems In investing 
overseas: following the prog- 
ress oF your chosen invest-, 
meat Being linguistically dis- 
advantaged {the only- 
languages I- speak are English 
and a hit of Cantonese), I have 
restricted, my foreign invest- 
ments to those companies 
where the repeats, are available 
in 

I did once venture into the 



Japanese market, where I 
invested in a company- that 
was too small to feature in the 
FT's world stock markets’ 
pages. I bad no idea how its 
shares woe performing (apart 
from phoning a London stock- 
broker) and could not read the 
all-Japanese report. 

There were also problems 
with the custody of the share 
certificate fit had to be held in 
Japan). I soon disposed of this 
aggravating investment.' 

Most of my foreign invest- 
ments have been in US, Hong 
Kong and Swiss companies, 
mainly because I have trav- 
el^ extensively in those coun- 
tries smA subscribe to US mid 
Hong Kong publications. 

It is also easy to follow the 
progress of many major Euro- 
pean companies because the 
Irmtstors Chronicle magazine 
has a section every week 
devoted to European company 
results. Their share prices ala) 
appear in the FT. 

. A number of companies, 
such as Nestfe, in which my 
personal srhemg hag a 
holding ;' also are quoted on the 
London stock market; thus, it 
is even easier to de a l in their 
shares end mmrHnr their prog- 
ress. 



any private 
investors con- 
tinue to think it 
is difficult to buy 
shares - in foreign companies. 
Yet, most brokers have some 
capability in thw area and a 
number of thAm offer a highly- 
eEBtient dealing service. 

. Although shares can be reg- 
istered in a “marking" or nrmn- 
nee name, it is possible to hold 
many foreign shares directly - 
in . which case, the problem 
arises as to how to handle for- 
eign currency dividend 
cheques without incurring 
heavy UK bank charges. 

The easiest solution is to 
open an overseas bank 
account But you must be care- 
ful to keep proper records of 
any withholding taxes on bank 


interest so that where appro- 
priate, these can be dealt with 
later under any double-taxa- 
tion agreements between the 
UK and the country concerned. 

At one time, my two daugh- 
ters had shares in Walt Disney 
in the US, as I thnngftt ft would 
be a useful educational invest- 
ment exercise. They enjoyed 
reading the colourful armnai 
report - and 1 even took them 
to Disney World so they could 
inspect one of “their” compa- 
ny’s operations «ih spend their 
dividends. 

We sold the shares some 
years ago when I had doubts 
about the viability of Euro-Dis- 
ney. Indeed, we never bought 
Euro-Disney shares as we felt 
tht« thump park would have 
had more success in the UK 
than France. 

There are other well-known 
non-UK «wwpmh« which aw 
be followed - especially those 
mairinp products used in UK 
homes every day. I am, for 
instance, attracted to Dole fruit 
and juices in the U& A visit to 
the local reference library to 
look at Who Owns Whom pro- 
vided me with the headquar- 
ters' address. A letter to the 
corporate secretary produced a 
copy of the annual report from 
which I could start an analysis 
of the company’s investment 
potential. 

Many US companies have 
ripparf m pntg d e vo ted to share- 
holder relations are more 
forthcoming with Information 
than some in the UK. Potential 
investors should request a 
copy of Form 10K, which is 
required of every quoted com- 
pany by the US Securities and 
Exchange Commission; ftfe is 
especially useful because it 
provides financial and o ther 
information, including back- 
ground details of a company’s 
executive offices. 

Some US company reports 
put to shame those produced 
by many UK companies. Take 
Knight-Eidder, the newspaper 
and information services 
group: it provides a wealth of 


M UR R A 






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vTfe have also won five first place (and five 
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You cm invest- for income, growth or a cxwnbi- 
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And tbe charges For our Personal Equity Pbn are 
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To find out more call us now on FREEPHONE 
0800 289 978 or amply FREEPOST the coupon. 

-a«^«Ba4ia>ama,„nl,.>afl.aa««*itaa,iaa< 

7 Kmq Jote m ooc IMcd nom, FSSCTOST. Glasgow QZB* 

! rfeue send dra Da of the ftick box) 

« Murray Investment Trust Savings Scheme □ 
l Huray Johnstone Investment Trust PEP □ 

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i.fMKvdr.. 



GOOD INVESTMENT COSTS LESS 
AT MURRAY JOHNSTONE 


- fcackta OKpflCY Ot aitf *eamc !■**(■ OB |B dm a mfl « w- gnfanme b ■* BKcwtJr « (Bide a dir ten. 

timiiinl iguiiinur-i tonif jubmioae UaiwU ttxmtar tfouiU. 7 *q» M fc sa«. Gtwpaf ui JX. rdMiat-aui. 


financial and other informa- 
tion ranging from operating 
cash flow margins to highs and 
lows of its share price for each 
year over the preceding 
decade. 

It also includes biographical 

riptnflc of directors and 88DlflT 

management, a brief history of 
the company, and a huge 
wmormt of information con- 
cerning the company's 
operations. I am still digesting 
it all before maidn g a decision, 
as to whether to invest 


o 


ver the years, my 
US investments 
have been very prof- 
itable - notably 
Amfac (which owned more 
than 50,000 acres of Hawaii) 
and MCA, the wi rn ffarimtigntg 
co nglomera te - both of which 
were taken over for sizeable 
sums. 

My interests In the US were 
increased after I sold my hold- 
ings hi B«*ng Wring fanmi» thno 
ago after becoming concerned 
about ludicrously high prop- 
erty values. It was all rather 
ratnhrisoept of Japan. 

An investor might be 
attracted to a Hong Kong com- 
pany because he Eked its prod- 
ucts - only to fiwri, reading the 
print of a report, that 
much of its profits actually 
wmw from property — lai or 
investments in other compa- 
nies in share or prop- 

erty dealing. I believe Hong 
Kong shares have much fur- 
ther to faR 

Although Wan Street is over- 
due for a further marfrat cor- 
rection, I «ttni feel there must 
be companies worth seeking 
out in the US for kmgerfesm 
gains. Hopefully, I can find 
something attractive in case 
the UK marke t disapp oints. 


P 


ersonal investors 
might see another 
attack on their divi- 
dend income if recent 
government policy hints are 
translated into action in the 
next Budget Stephen Darrell, 
financial secretary to the Trea- 
sury, is reviewing savings and 
investment And, in a recent 
speech to the Confederation of 
British Industry council, he 
suggested high dividend pay- 
outs in recent years may have 
restricted companies' ability to 
invest for the future. 

Darrell ruled out a return to 
the dividend controls imposed 
in the 1970s and said tax 
changes would not be made 
until the government could 
“first identify the impro vement 
we seek and, secondly, estab- 
lish th at tax fhanpiftw are the 
best means of achieving it” 
Nevertheless, City opinion is 
concerned about the potential 
fora tax changA The National 
Association of Pension Funds 
Is sending a report to Dorrell 
arguing that there is no evi- 
dence to suggest high dividend 
payouts restrict investment 

The government hag already 
made one attack on the tax 
position of dividends. Norman 
Lamont, than chancellor of the 
exchequer, cut advance corpo- 
ration tax (ACT) to 20 per cent 
in his March 1983 Budget But 
the peculiar UK system of divi- 
dend fanratinm Twwrnt that this 
“cut” actually reduced the 
income of many investo r s. 

The British system is 
designed to stop investors from 
faring “double taxation”; this 
would occur if they paid tax on 
dividend income on which 
companies had paid corpora- 
tion tax already, rngtoari ux 
c ompanies pay ACT when they 
make their dividend payments 
to shareholders. This ACT is 
then offset against the compa- 
ny’s corporation tax bill on its 
aimnal pr ofits For basic-rate 
tax investors, the ACT pay- 
ment is regarded as 
their income tax liability. 

But the gro wth of pension 
funds, which are non4axpay- 


Worry over 
dividends 

Personal investors face threat 
to income, says Philip Coggan 


'Share prfoa* eatstrip dWtlwdi 

tndtoas wfra add i : . ' 

isjxo 

• ....^ 


- ; PMctead payouts 

ICC* eMdmds^ICC.iiicems 
08 


0j6- 



,1*8870 7* . m 82 88 BO W 
S^uwwOiS w> ife i»8 l8i h i wt JWMw 

big, baa had a peculiar 
on the system. A pension fond 
can reclaim the ACT paid by a 
company. Every time it 
receives a net dividend, it also 
gets a tax credit to cover the 
ACT paid. It uses this credit to 

r aftlairn tha tare friy u th e Inland 

Revenue, a process known as 
“grossing up” the dividend. 
Thus, by reducing the tax 
credit, Lamont 's cut in ACT 
cut funds’ income. 

What about private inves- 
tors? If a Dorrell- Inspired 
reform followed the Lamont 
example, the two largest 
groups to be hit would be 
higher-rate taxpayers and 
investors in personal equity 

platiH 

Take a company which pays 
a net dividend erf 7Ap. Under 
the pre-Lam out system, that 
would have generated a tax 
credit of £5p. A Pep investor 
COUld tMa in tha 

samp way as a pension fond. 


a« as « - 


and earn 10p in total A higher- 
rate taxpayer would have been 
forced to pay the difference 
between the basic rate of tax, 
25 per cent, and the top rate of 
40 per cent This 15 per cent 
rate, charged on the gross divi- 
dend of lOp. would reduce tbe 
higher-rate investor’s dividend 
to Qp. 

Lamont reduced the ACT 
rate to 20 per cent. This meant 
that, in tiie above example, the 
tax credit fell to L675p, and the 
total return to the Pep investor 
to 9-375p. The higher-rate tax- 
payer was hit, too. He now had 
to pay the difference between 
20 per cent and 40 per cent tax 
(that is, his “extra” tax bill 
increased from 15 to 20 per 
cent). This meant that his net 
dividend fell from 6p to 5A25p. 
Overall, the income of both 
higher-rate and Pep investors 
was reduced by &25 per cent 

Say the next Budget reduced 
the ACT rate further, to 15 per 


cent On a net dividend of 7.5p, 
the tax credit would be L32p. 
making a gross dividend of 
g&p. For higher-rate taxpay- 
ers, their after-tax dividend 
would Ml to 5-29p. Both sets of 
investors would see a fell in 
income of 5£ per cent 

Basic-rate taxpayers are 
unlikely to be affected, in 
income terms at least. The 
Lamont Budget also cut the 
basic tax rate on dividends to 
20 per cent, which ensured that 
75 per cent taxpayers came out 
even from the change. A simi- 
lar measure would be likely if 
ACT was reduced to 15 per 
cent But basic-rate taxpayers 
might still get a capital ML 

One key valuation measure 
for tiie stock market is the 
gross dividend yield. That 
would fall automatically if the 
ACT tax change was imple- 
mented. At the moment, the 
FT-A All-Share index is yield- 
ing around 3J per cent, at an 
index level of L500. A change 
to 15 per cent ACT would 
reduce that yield to 3.66 per 
cent. But if investors were will- 
ing to hold shares at only a 3.9 
per cent yield, the All-Share 
index would have to fall to 
1.41L5, a drop of 5A per cent, 
to restore the status quo. 

An ACT change might not 
happen. Governments often 
have “flown a kite" about some 
major policy move in order to 
gauge public reaction. If that 
was hostile, the Initiative could 
be withdrawn without loss of 
faca 

Alternatively, a less strin- 
gent measure could be intro- 
duced in tbe belief that inter- 
est groups would be less 
forthright in their opposition 
because they were relieved the 
worst horrors had been 
avoided. 

Nevertheless, unless the gov- 
ernment explicitly rules out a 
change, expect the issue to 
gain greater prominence as the 
November Budget approaches. 
In the meantime, speculation 
about the change may further 
undermine sen timent in an 
already weak equity market 



Extra Income 

Through scientific management, it is possible 
to receive an above average income while retaining 
the potential for growth of your capital. 

This requires a constant, objective 
and scientific assessment of investment options. 

We anticipate how well an investment 
should perform by projecting its behaviour. If an 
investment performs too poorly or indeed too well, 
we analyse why. Unacceptable deviations from given 
parameters are eliminated. 

It is because we understand that our 
clients' long-term objectives are best met by consistent 
results that each one of our investment judgements is 
tific basis. 

As one of the few global investment 
specialists, we believe that research, analysis, measurement 
and understanding must always be applied to investment 
We don't believe in instinct alone, 
because what we aim to do could affect your future 
as profoundly as any scientific breakthrough. 

if you’d like to know how IN VE SCO's 
scientific approach can benefit your long-term invest- 
ment objectives, please complete and post the coupon, 
or call us free on 0800 010 333. Alternatively, contact 
your Independent Financial Adviser. 



3 % FRONT END CHARGE 


The scientific 
approach 
to investment 


NO BACK END FEES 


INVESCO 

The scientific approach to investment 


RESEARCH 


ANALYSIS 


MEASUREMENT 


UNDERSTANDING 


Pl ease send me m ore details on {tick as appropriate):- □ EXTRA INCOME FUND Q INVESCO 



Please complete and post to INVESCO, FREEPOST. 11 Devonshire Square. London FC2B 2TT. 


A22302 


INVESCO is the marketing name of INVESCO Fund Managers Ltd. The value of investments and any income from them can fall as well as rise and you may 
not receive back the amount invested, particularly in the case of early withdrawal. INVESCO Fund Managers is a member of 1MRO, LAUTRO and AUTIF 






FINANCE AND THE FAMILY 


Watch those 
Pep charges 

Fourth in Anthony Bailey’s series 
on the true costs of investing 


I nvestors should be wary 
of placing too much 
emphasis on the costs of 
investing. Other factors. 



such as the Quality and record 
of a fund manager or the 
administrative efficiency of a 
broker, can be equally or more 
important 

When it comes to personal 
equity plans, however, it is 
important to pay extra atten- 
tion to costs. How do they mea- 
sure up against the gain from 
Pepping an investment: 
namely, the tax-saving? There 
is no point in investing in a tax 
shelter if the cost of doing so 
exceeds the benefit 

■ “Charge-free” Peps 

What this actually means is 
that all you pay are the 
charges on the underlying unit 
trust In fact, there are no spe- 
cific Pep charges levied on the 
great bulk of Pepped funds. 
This is because most Pepped 
money is invested in unit 
trusts. With few exceptions, 
unit trust managers allow 
investors to Pep their funds at 
no extra cost, although they 
will have the usual underlying 
unit trust costs. 

The case for Pepping is 
strong with charge-free Peps. 
Even non-taxpayers can bene- 
fit because they avoid the 
bother of having to reclaim 
tax and can re-invest gross div- 
idends. There are, though, a 
few caveats. You will not nor- 
mally be able to mix funds 
from different managers within 
the same Pep. And you are 
likely to have to pay a transfer 
fee if you decide to switch to 
another manager. 

You will also need to decide 
if your chosen unit trusts are 
the most suitable investment 
to Pep. That could depend on 
whether you expect greater 
growth or higher dividends 
from other bits of your portfo- 
lio. 

■ Reduced charges 

Recent developments in the 
unit trust market have actu- 
ally made Pep investing 
cheaper. Fidelity levies a 2 per 


cent initial charge an its unit 
trusts placed in a Fidelity Pep. 
That is a saving of 335 per 
cent on the normal charge, and 
means the eventual pay-out 
will be increased by 335 per 
cent There is, though, an exit 
charge in the first three years. 

M&G’s Managed Income Pep 
has no initial charge, boosting 
the final pay-out by 5.5 per 
cent Exit charges are levied in 
the first five years. Likewise, 
Guinness Flight, Gartmore and 
Schroder s are among fund 
managers who have made 
investing in a Pep cheeper 
than investing outside nra> 

■ When charges bite 
Charge-free Peps are not for 
everyone, though. Active 
investors who tend to buy and 
sell a range of unit and invest- 
ment trusts, and those who 
prefer to put their money 
directly into shares, inevitably 
incur charges. 

The main ones are the initial 
and annual charges. Where 
these are levied, they may be 
flat. rate or percentage-based. 
You might be looking at an 
Initial charge of £30 to £75, or 
up to 5 per cent of your invest- 
ment Annual charges may be 
a flat £20 to £80 but, more typi- 
cally, are 1 to L5 per cent of 
the capital value. 

In addition to the main 
charges, there are other costs. 
Fees of up to £50 to attend an 
annual general meeting are not 
uncommon. 

Other charges may be more 
significant A fee of £10. £25 or 
1 per cent for taking cash out 
of a Pep will not suit investors 
p lanning on a regular income. 
Fees of £20 to £50, or perhaps 
£10 per holding; for transfer- 
ring to another plan manag er 
could also bite. 

■ Choosing on cost 

Some fees charged by some 
plan managers seem excessive 
and can be avoided easily by 
taking your custom elsewhere. 
Nevertheless, choosing 
between different charging 
structures Is not easy. 

A fee to cover the cost of 


COST CHECK 

Service charge Coat 

Initial charge — 

Annual charge 

Dividend charge 

Cash withdrawal 

Transfers out ..... 

Closing a pUm 

Attending AGM 

RecetVg company reports — 

Share dealng oomm bato n _ 

Buying end setting wit mate _ 

Unit trust switchtog dtecount 

Interest rate on cash hldgs 

Lb— of ah— hoMa ra * psrl »7 


re-claiming tax on each divi- 
dend is simple mid straightfor- 
ward. But how many shares 
and unit trusts do you expect 
to have in your portfolio, and 
of what value? 

With any plan manager, you 
will want to check details of 
brokerage commission and 
minimum dealing charge. Are 
they priced competitively? 
What is the cost of buying and 
selling unit trusts; and are 
there any switching discounts? 

The best deal very much 
depends on what sort of inves- 
tor you are (or expect to be). 
Do you want to invest in a mix 
of shares, unit trusts and 
investment trusts, or can you 
live with restrictions? 

Do you want a self-select 
Pep, or are you happy to give 
discretion to an investment 
manager? Are you likely to be 
an active investor who deals 
often? 

Chase de Vere's Pep Guide, 
price £935, gives a comprehen- 
sive listing of fanri managers 
and their charges (tel: 071-404 
5766 for details). Do not forget 
you win need to add VAT of 
173 per cent to most costs. 


although this does not apply to 
a broker’s dealing charge. 

■ Cost/tax benefit analysis 
When, it comes to personal 
equity plans with charges, the 
case for Peps Is not clear-cut 
TOiey are a must for investors 
who pay higher-rate tax and 
those whose portfolio la big 
enough to generate a capital 
gain of more than the annual 
£5300 capital gains tax exemp- 
tion. 

Basic-rate taxpayers with 
small portfolios will need to do 
same sums, though. A small 
portfolio could well grow suffi- 
ciently to hit the capital gates 
tax net, so Pepping amid make 
sense. 

But a cheaper way to protect 
against GGT could be to bed 
and breakfast enough, invest- 
ments each year - that is, sell- 
ing late one day and buying 
hark early the next — so that, 
eventually, you can bed and 
breakfast them into a Pep once 
the portfolio has grown 

As far the income tax saving; 
one way of measuring this is to 
compare the expected yield 
with the annual percentage 
charge. Basic-rate taxpayers 
should multiply the annual 
percentage charge (before 
adding on VAT) by 5.875. 
Higher rate taxpayers should 
do the same, then divide the 
answer by 2. 

. The resulting figure must 
match the yield for the income 
tax saving simply to pay for 
the annual charge. Thus, an 03 
per cent charge has a 
break-even yield of 234 per 
cent for a basic-rate taxpayer 
and L47 per cent for a higher- 
rate taxpayer. The break-even 
yields for a 13 per cent annual 
charge would be 831 and 4.41 
par cent respectively. 


A saver for travellers 

Bethan Hutton finds annual insurance policies can offer good value 


I t yon throw away auto- 
matically all the glossy 
leaflets that frill out of 
the envelope with your 
bank and credit card state- 
ments each month, for once 
you could actually miss some- 

filing useful. Your bank, build- 
ing society or card issuer 
might have been touting an 
annual travel insurance. policy 
which could save you time and 
money. 

With single- trip insurance, a 
couple spending a week skiing 
and a two-week summer holi- 
day in Europe each year would 
be lucky to spend less than 
£100 to cover both. 

Once children, weekend 
breaks, business trips and holi- 
days outside Europe enter the 
picture, the attractions of an 
all-inclusive family policy for 
as Utile as £109 become clear. 

Annual policies usually pro- 
vide cover for an unlimited 
number of overseas trips and 
their convenience and costef- 
feettveness have been strong 
factors in their growing appeal 
But another reason could be 
the increasingly common hahit. 
of taking more frequent holi- 
days abroad, particularly short 
breaks. - 

Most of the clearing banks 
and large building societies 
now have own-brand policies, 
as do several specialist travel 
insurers, American Express, 
the travel clu b We xas. and 
health insurer BUPA. Insur- 
ance broker Towry Law is the 
latest to join the crowd. 

A lucky few consumers may 
have aTwwiat travel Insurance 
already. Some gold cards 
include it in their hig h annual 
fee while Clinlcare has travel 
insurance as part of its private 
medical cover. 

Recent policy launches are 
showing a tendency towards 
greater sophistication, not to 
merman complication. 

You can now opt for budget, 
standard or deluxe cover; 
reduce premiums by going far 
a high excess or ruling out 
trips to North America; opt out 
of baggage cover, choose 
higher or lower cancellation 
limits, and so on. Some polities 
even offer overseas motor 
breakdown insurance as an 
optional extra. 

The numerous quirks and 
Options available mean that it 
Is well worth shopping around 
to find the most appropriate 



deal for your own circum- 
stances. Unfortunately, some 
of the better-value schemes 
have limited availability. 

Midland's policy is available 
only to its credit card-holders 
and a more or less identical 
policy is available only to First 
Direct customers. 

With some of the cheaper 
policies, watch out for an over- 
all limit on the amrwm* of time 

you spend abroad each year. If 
there Is one, it Is usually 100 
days or more. 

This should not create any 
difficulty for the average work- 
ing person hut could be a prob- 
lem if, say, you have a house 
in France or Spain and spend a 
lot of time there. 

All the policies have time 
limits per trip (to stop them 
being used by expatriates 
returning to the UK once or 
twice a year); these range from 
one to three months. 

S hould your home con- 
tents policy already 
cover your luggage and 
personal possessions, 
insurers such as Bradford & 
Bingley, National & Provincial. 
Lloyds Bank. Towry Law and 
Frizzell offer pr emiums 15 to 20 
per cent lower if you opt out of 
baggage cover. 

Skiers should be aware that 
some policies exclude winter 
sports, although most cover up 
to 17 days’ skiing a year auto- 
matically while the Midland 


Annual Travel 



Single 

Family 

Ainex 

£130 

£179 

Barclays 

£98 

£126 

BUPA 

£130 

£185 

Brad. & Bing. 

£75 

£209 

Columbus 

£79 

£131 

Thomas Cook 

£125 

£270 

Co-op 

£80 

£149 

Crispin Spears* 

£140 

£210 

First Direct 

£75 

£109 

FrtoeT 

£112 

£298 

Gen. Accklenr 

£78 

£152 

Halifax 

£90 

£125 

Lloyds 

£95 

£126 

Midland 

£75 

£109 

Nat & Prov. 

£75 

£250 

Towry Law 

£95 

£155 

TSB 

£95 

£150 


tomtom quoad are tar wortMd* eowwitnir- 

an mriad ■ ako attar Brep»-orfr p mn lu m a . 
-Farriy' - t*o adults ml at least WO GtiMOA. 


and First Direct policies set no 
limit cm skiing holidays. Devo- 
tees of other sports should ask 
specifically if they are covered. 

Likewise, business travellers 
should check that their chosen 
policy also Is valid for business 
travel. 

The Halifax, for example, 
excludes business travel alto- 
gether while the Bradford & 
Bingley charges an extra £2430 
to extend the policy for unlim- 
ited business trips. 

Older travellers may have 
difficulty finding an annual 
policy as many insurers 
impose an age limi t for annual 
cover of 60 or 65. Indeed, some 


refuse customers older than 
this, and others charge sub- 
stantially more. 

Towry Law has an age limit 
of 71 for its standard rates 
while Bradford & Bingley 
charges £130 for over>65s. 

Some insurers let you choose 
if you want a partner and chil- 
dren to be able to travel sepa- 
rately from the main person 
insured. The Crispin Speers 
family premium quoted In the 
table covers a spouse and up to 
three children for travel with 
or without the first person 
insured, but £25 less buys 
cover if they only ever travel 
as a family group. 

It is always worth reading 
the small print, preferably 
before you sign up for the pol- 
icy - although it can be sur- 
prisingly difficult to get hold of 
foil policy details before you 
makeup your mind. 

A keeneyed reader could dis- 
cover, for instance, that 
Columbus will not cover can- 
cellation costs if you lose your 
job - but will cover delays due 
to acts of terrorism. 

In general, areas to check 
particularly carefully include 
excesses, limits on individual 
items and money, and overall 
limits for cancellation costs. 
Also, you should let the 
insurer know if you have any 
medical problems; otherwise, 
you could find It will refuse to 
pay up if you become 111 on 
holiday. 


EXCELLENT 
RESULTS FROM 
MONKS 

I Net Asset Value up 25.3%* 

Dividend Grows by 4.5%* 

The preliminary unaudited annual results of THE MONKS 
INVESTMENT TRUST PLC show the net asset value rising by 
25.3%, compared to a rise of 13.5% in the FT World Index* 

:» The net dividend has grown as well from 6.7p last year to 7.0p.* 

You can invest through the commission-free Investment 
Trust Savings Scheme or through the low-cost PEP. 

For further information please complete the coupon below 
or telephone 031 222 4244. 

Past performance is not necessarily a guide to future per- 
formance, and changes in currency exchange rates may cause 
the investment to fall or rise. Tax reliefs on the PEP are those 
currently applicable and may change. The value of any tax relief 
depends on personal circumstances- 


B alllie Gifford & Co 

Scotland’s Largest Independent Investment Managers 

Member oflMRO 


TWl *dTCTtB«TTWiic bn been toned bjr Tbe Mnb Immcnc Tcm PLC and JffrfBecdbr 
fidiUtc Giflbni Stvingi Ataugement ted. i member of 1MRQ BrfUie Gdtonl Snap M mhuimi Lai at nnns g ni 
at Uu HjAUrCvIM InmoneM 7taM Saving, Sdbeme and 1 R 3 wboBj’ (mud abaSary ofOkllie GiAud & Co 
who tie' the maugen md miaki of Tbc Monfa l u vot meiu That PtC. 

♦ Source for all figures: Monks Annual Report axmonneement 1994 . 


Phone 031 222 4244 (office hours). 

Fax 031 222 4299 (any time) or post this coupon 
To: Lindsey Greig, Baillie Gifford Savings Management Ltd, 

1 Rutland Court. Edinburgh EH3 8EY. 

Please send me details on 

the investment Trust Savings Scheme and Monks Q 

the PEP and Monks G. 

IT yon da not <nah nnem udumution an other produce or wnko offered by o umJwi and oor 
jnoewed twnjMriei pfouc ocfc die bo* □ Ifoor name a never atxk nxhUe m urKOimtcvd orgaanwom. 

Mr/MiVMm 

Amende 

FT4JM4A 



W hen yon sign up 
for a company 
pension scheme. 
It is tempting to 
awKirmp that the employer will 
see you right. But under a 
group personal pension (GPP) - 
now the fastest-growing com- 
pany pension arrangement - 
the employer does not have to 
take any responsibility what- 
ever. Nor does he have to pay a 
penny. 

’ Since 1988, when GPPs first 
became available, life offices 
have marketed them as the 
cheapest alternative to tradi- 
tional pension schemes. Cer- 
tainly, a well-funded GPP can 
provide excellent benefits. At 
their most basic, however, 
these group plans offer a sub- 
sistence-level pension based on 
a rebate of National Insurance 
contributions. 

Moreover, GPPs claim to 
offer flexibility and portability 
to younger employees who are 
likely to change jobs. What 
providers often fail to point out 
is that a typical regular contri- 
bution contract Is completely 
inflexible, while portability is 
available only at a price. 

A GPP actually is a collec- 
tion of individual “money pur- 
chase" personal pensions 
selected by an employer. 
Unlike traditional final-salary 
schemes, which link the value 
of the pension to the employ- 
ee’s salary at retirement, the 
Investment risk rests with the 
employee under a GPP. 

Contributions are invested to 
provide an individual pot of 
money at retirement; this is 
used to buy' an annuity. The 
level of annuity income 
depends on investment returns 
and the provider's charges, 
among other factors. 

The main point to remember 
with a GPP is that although 
the employer selects the plan, 
the onus lies with the 
employee to decide whether it 
is a suitable investment. 
Clearly, then, it is important to 
find oat what benefits you are 
hkely to get and whether yon 
need to boost your contribu- 
tions to provide a better pen- 
sion. 

The following questions 
apply to most group money 
purchase arrangements, not 
just GPPs. 

■ How was the 
provider selected? 

The employer should receive 
advice on a fee basis from an 
independent consultant, rather 
than from a commission-based 
salesman or adviser. This 
ensures that the selection is 
free from bias, and that com- 
petitive plans are considered 
from low commission and non- 
commis sion-pa yin g providers. 
It means also that the 


Pensions with 
a hidden twist 

Debbie Harrison on group plans 
that may not be what they seem 


employer has paid for the cost 
of advice. If he does not pay, 
the provider will deduct these 
costs from your early premi- 
ums. 

■ What are the 
provider's credentials? 

If the adviser has done a thor- 
ough job, he will have checked 
the provider's financial 
strength, administration facili- 
ties, investment options and 
past performance. Information 
on performance should come 
from an independent source, 
either the adviser's own 
research or from independent 
surveys such as those pub- 
lished in such FT group maga- 
zines as Pensions Management 
and Money Management, 

Several direct sales organisa- 
tions do not take part in these 
surveys; if the provider is one 
at these, you should ask why. 
They may well say that, since 
they do not sell through inde- 
pendent advisee, the surveys 
are irrelevant 

Often, though, the real 
answer is that they have a 
combination of poor perfor- 
mance and high charges and , 
therefore, are not competitive. 

■ What are the charges? 

The level of charges will have 
a significant impact on the 
final return. The adviser 
should be able to explain what 
the charges are, how they com- 
pare with those of competitors, 
and if the e m ployer has negoti- 
ated reductions for economies 
of scale and contribution col- 
lection. 

If your employer does not 
check for flexibility, you could 
be locked In to regular pay- 
ments until expected retire- 
ment date. If payments stop, 
particularly in the early years, 
most of your contributions will 
disappear in the provider’s 
administration costs and the 
adviser's commission pay- 
ments. 

■What happens 
when I change jobs? 

This follows an from the last 
point In theory, you can take 
your personal pension with 
you from job to job. In practice, 
if you have a .commission- 
based regular premium plan, 
yon will incur a penalty when 


payments are reduced or 
stopped. 

If your new employer offers a 
good company pension scheme, 
then almost certainly you 
should join to benefit from the 
employer contribntions, the 
guaranteed pension, and other 
family protection benefits. By 
law, however, you cannot be a 
member of a company scheme 
and maintain payments to a 
personal plan. 

Some providers allow rifonfa 
to redirect personal pension 
payments to a free-standing 


How modi 

should you and 

your employer p» In to 

Che groop p 

•nwiil pension? 

A fie Total annual contrib * 

25 

15% 

35 

17% 

45 

18% 

56 

20% 

60 

2196 


* Esfimttd corxribdOcni required 19 w adi a 
w«a ***** a aren re utmre ana dbrewh of 
M Mteylt renred tar «k*i yrer of sank*. 
Tha fl^an mutw S par cant par mp krmto- 
■nant ream. 7 parcore pvanrem ortay ipmfllt, 
■*■£ par cent pm nun pm ton Inauau and 
90 par cant apouMV doo&i after redramont pwv 
aim No reU dtoinMj has boon read* tx 
to eOHd id ttre pmMM ciu^ wMtt cored 
reduea 0» In— aane n rwbwn br 2-3 par oare. 

Source: MMkms 


additional voluntary contribu- 
tion (FSAVC) plan, which is 
used to top up company pen- 
sion benefits. 

This arrangement is fine if 
the employee can afford to 
keep up the company pension 
and FSAVC payments. But 
many younger people cannot 
afford this luxury ami, even if 
they could, the employer's 
AVC scheme might offer better 
value than the individual 
FSAVC plan. 

Those who become self-em- 
ployed can continue their per- 
sonal pension plan, aithnngfr 
there might be a penalty for 
short contribution gaps if ini- 
tial cash flow is poor. The 
unemployed may be covered 
for a short period by a “waiver 
of pr em i um " clause in the con- 
tract but the long-term imam , 
ployed will have to drop out as 
they will have no earnings on 
which to base contributions. 

Given the unpredictability of 
career patterns, the only way 
to guarantee complete flexibil- 
ity is to avoid regular contribu- 


tion contracts unless they are 
on a nfl-commission basis. If 
you have to pay commission, 
opt for a recurring single-pre- 
mium plan which avoids the 
heavy up-front charges. 

■ Is the plan contracted 
out of Serps? 

If you are sold an “appropri- 
ate" personal pension plan, 
you will contract out of the 
state earoings-related pension 
scheme (Serps). In return, the 
Department of Social Security 
(DSS) wffl send to the plan pro- 
vider a rebate of your own and 
your employer ’9 National 
Insurance contributions. 

A decision to opt out of Serps 
should be made eat»h year 
will depend on your age, sex 
and salary. As a rough guide. If 
you are a man under 40 or a 
woman under 35 and earn at 
least £8300 a year, you should 
consider opting out Otherwise, 
stay in Serps because it is 
likely to provide better benefits 
than the personal pension. 

■ The contributions 

The reason most group per- 
sonal pensions do not provide 
good benefits is that the 
amounts invested are too 
small Whether you opt out or 
stay in Serps, it is essential to 
pay additional premiums in 
order to build up a decent pen- 
sion. 

Under a personal plan, the 
combined employee and 
employer contribution most 
not exceed 17.5 per cent of 
earnings (more for older 
employees but there are 
restrictions for high earners). 
Where the employer does make 
a contribution, this is likely to 
be about 3 per cent. But most 
pay nothing at alL 
Compare this with the level 
of contributions needed to 
match the benefits provided by 
a good final-salary scheme and 
you can see why GPPs are 
attractive to the more cost-con- 
sdons employers (see table). 

■ life assurance 

Find out if there Is any life 
assurance linked to the plan 
and who is paying for it. A 
close examination often 
reveals that it is not the 
employer who pays; instead, 
premiums are deducted from 
employees' contributions. 

■ Caveat emptor 

The feet that your employer 
offers a GPP should not deter 
you from scru tinising the pro- , 
yideris terms and credentials 
in the same way you would, for 
an individual plan 
Mother you get value for 
money depends, above all, on 
the quality of your employer’s 
research and the depth of his 
pocket 




FINANCIAL TIMES WEEKJSNP JUNE 4/JUNE 5 1994 


WEEKEND FT VII 



FINANCE AND THE FAMILY 


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I have read with interest the 
recent articles on capital gains 
tax in the Weekend FT. In the 
case of nnit trusts, it is stated 
that equalisation should he 
regarded as a repayment of 
capital 

But os this repayment does 
not occur until up to six 
months after the initial invest- 
ment, at the time of the first 
dividend, presumably the 
equalisation itself needs index- 
ing from the time of repay- 
ment and not from the dme of 
the initial investment? 

■ Yes. you are right By virtue 
of section 99 of the Taxation of 
Chargeable Gains Act 1992, 
units in an authorised unit 
trust are treated as if they 
were shares, in a UK co mpany - 

Consequently, equalisation 
payments are treated as if they 
were capital distributions in 
respect of shares, and the 
receipt of an equalisation pay- 
ment is deemed to be the occa- 
sion of a part disposal of the 
units, by virtue of section 
122(1) of the Act 

As the equalisation payment 
will, in practice, always be 
“small, as compared with the 
value of the (units) In respect 
of which It is distributed”, 
however, section 122(2) author- 
ises the unit-holder's tax 
inspector to direct that “(a) the 
occasion of the capital distribu- 
tion shall not be treated for the 
purposes of this act as a dis- 
posal or the asset, and (b> the 
amount distributed shall be 
deducted from any expenditure 
allowable under this act as a 
deduction in computing a gain 
or loss on the disposal of the 
(units) by the person receiving 
or becoming entitled to receive 
the distribution of capital". 

If, by chance, your tax 
inspector declines to give a 
direction under section 122(2) 
in respect of any particular 
equalisation payment, then 
section 122(3) gives you the 
right to "appeal to the commis- 
sioners having jurisdiction on 


Why equalisation 
needs indexing 


an appeal against an assess- 
ment to tax in respect of a gain 
accruing on the disposal”. 

For equalisation payments 
made before April 6 198$, there 
are complex indexation rules 
(re-enacted in section 57 of the 
1992 act [Receipts which are 
not treated as disposals but 
affect relevant allowable 
expenditure!), which are quite 
different from those for later 



BRIEFCASE 


For current payments (and 
those made in 1985-8G 
onwards), section 110(8Xd) sim- 
ply says: "Whenever an opera- 
tive event occurs... if the 
operative event results In a 
reduction in the qualifying 
expenditure but is not a dis- 
posal, the same reduction shall 
be made to the indexed pool of 
expenditure.” 

We shall be happy to explain 
the oddities of section 57 and 
its predecessor, if need be - 
but we hesitate to burden you 
with a reply even longer than 
this one is already. 

Shares in 
Guernsey 

A Guernsey resident, iura-do- 
miciled for UK tax purposes, 
has a portfolio of UK company 
shares registered in a Guern- 
sey nominee company. Does 
this afford any protection 
against liability to UK inheri- 
tance tax? Is the ultimate pro- 
tection to have them owned by 
an offshore company or trust? 
■ Assuming the shares are 
registered on a UK register, a 
liability to UK inheritance tax 


«»*L 
FntrU Ihn tar 
atom AMantfdam 


can <» saxptod by n* 
a aroma tfian to fw 
n* to a nwna rf by pan 


arises since the determining 
factor Is the beneficial and not 
the legal ownership. 

Even If assets re main liable 
to IHT, there is a £150,000 nil 
rate band which is available to 
UK and non-UK domiciled indi- 
viduals alike: therefore, any 
transfers of up to this amount 
will not suffer a UK inheri- 
tance tax charge. 

If the value exceeds this fig- 
ure, you might wish to con- 
sider transferring the benefi- 
cial ownership of the shares to 
an offshore company. (Answer 
by Barry StiUerman of Stoy 
Hayward). 

Magnet loses 
attraction 

On going through my invest- 
ments, I find I am the holder 
of 300 "non-voting A convert- 
ible shares" in Magnet Group 
pic. These were issued in July 
1989 and I think were related 
to the management buy-out 
that occurred at that time. Are 
they worth anything or should 
I consign them to the dustbin? 


■ Our investigation shows 
that Magnet Group changed its 
name to Airedale but that 
these shares are now worthless 
and, therefore, available to you 
only os a loss to offset against 
gains elsewhere. (Answer by 
Murray Johnstone Personal 
Asset Management). 

Personal 

allowances 

My daughter is a British sub- 
ject, resident in the US since 
about 1987. She has very little 
Income there but £8,000 a year 
gross income in the UK - 
mostly income from rents - on 
which she pays UK income 
tax. 

On two occasions, I have 
asked the inspector of taxes if 
she could claim personal 
allowances. He rep tied that, as 
she was resident outside the 
UK, she did not qualify for UK 
personal reliefs. 

Some months ago. however, 
Barry StiUerman wrote in 
answer to a reader’s letter that 
"British citizens, no matter 
where they live ... are entitled 
to their annual personal allow- 
ance for income tax". Have 1 
misunderstood his reply or is 
my daughter’s inspector 
wrong? 

■ Under section 256 of the 
Income and Corporation Taxes 
Act 1988 (ICTA 1988), any indi- 
vidual who both makes a claim 
to personal allowances and 
who satisfies certain condi- 
tions is entitled to UK personal 
allowances. 

Under section 278 ICTA 1988, 


NEW UNIT TRUST LAUNCHES 


Manga (Tataptajne) 


Tup* Ft* Swfngt - Charges outsklo PB> - H ntaun - Chargee taside KP - Mnmum Sped* alter - 

Grass Pff Schemes HU Annual Other Inwt k*U Aral Otter ImsL Dfccort Period 
Yield « OulAnf.K%«£%%%E« 


■ Portfolio Emerging Markets Fund 

Portfolio ( 07] 638 0808) 

International growth 0 No No 5.0* 12 No 1,000 nfe n/a n/a n/a 9 30/5/94-17/5/94 

Portfolio is. capitalising on the success of Its top-performing Fund of Funds bust by applying the same principles to emerging markets. 


Discounts for purchases of £5,000 pkts on sMng scale. ttRxed Initial price of SQp. 


NEW INVESTMENT TRUST LAUNCHES 


' Targets 


Manager (Tetejdroae) Broker 


Seen 


She 

Em 


— Outrtto PB> — — tnsUe PEP — 

Issue MhfenunMMmm Antral MMmntn Amiri 
TO 3 Stooge Price HAV hvsL Chengs tmsL Change 

tori? Sebmna P P £ % £ % Offer 


■ Johnson Pry European tftBtttoh 

Johnson Fty (071 321 0220) 

Smith New Court Split Capital No 30 6% Yes No lOOp 

Pan-European version of Johnson Fry's two hlgh-yfetding UK utilities trusts, launched last year 


n/a 3,000 08% 3,000 £30 16/5/94-7/6/94 


■ S c h r ode r Japan Growth Fund 

Schroder Investment Management (0800 526535) 

Smith New Court Japan IS 100+ n/a No Yes tOOp 95 j5p 2,000 

General Japanese fond from the Schroder stable, which already runs several Japanese unit trusts 


1% fl/a n/a 7/6/94-30/6/94 


■ The Murra y Johnstone Acorn Trust launch has been postponed. 


S 

t 

V . 

HIGHEST RATES FOR YOUR MONEY 



m 


Account 

Telephone 

HotteW 

term 

MMbmii 

deposft 

Rate 

% 

bit 

mtid 

*4. : 

INSTANT ACCESS A fo» 








T-* . 

Hrmim^xan) MMsJwbs 8S 

First Class 

0902 845700 

Postal 

1500 

5-25% 

Y ft 



Manchester BS 

Money by Mai 

061 839 5545 

Postal 

£1.000 

6.00% 

Yly 


. : \ 





£25,000 

6.65% 

Yly 



Birmaighafii MUsWros BS 

Fast Class 

09Q2 645700 

Postal 

£100,000 

7.00% 

Yly 

fe*- 


NOTICE A/ca and BONDS 







V* 

* 

City & Metropottart BS 

Super 60 

081 464 0814 

60 Day 

Cl 0,000 

6.60% 

YJy 

s5b»- 


Bntmnia BS 

Index finked 

0538 391690 

SO Day 

£1,000 

6.60% 

Yly 



Chefeara BS . 

Fixed Rate Bond 

0800 272505 

30A97 

£10.000 

7.60%F 

Yly 

ar . 

v • 

Vortahire BS 

Fbced Rate Bond 

0800 378836 

30.6.98 

£5/100 

8-50%F 

Yly 



MONTHLY MTEREST 







£ r 


Manchester BS 

Money by Mafl 

061 839 5545 

Postal 

£5,000 

5.84% 

Wv 


- 

Brilauiu BS 

Index Linked 

0538 391690 

90 Day 

Cl .000 

8.41% 

Mty 

1 * 

— 

Chelsea BS 

Bose Rate Ptustil 

0800 272505 

1.3-96 

£10.000 

7iS% 

Mty 



Yaikslwe BS 

Fixed Rate Bond 

0800 378836 

30698 

£5,000 

8^0%F 

Mty 

:■& 

• 

TESSA* (Tax Free) 







. *< 


Cofdaderatwn Bank 


0438 744500 

5 Year 

£8£00 

aoo%F 

Yly 

f7y 


Hnklev & Rugby BS 


0455 251234 

5 Year 

£3,0008 

7.35% 

Yly 



Nahoiwi Counties BS 


0372 742211 

5 Year 

£3.0006 

7.25% 

Yly 

tees 

■ ; 

Mellon Mowtxay BS 


0664 63937 

5 Year 

£1 

720% 

Yiy 



HIGH INTEREST CHEQUE A/ca (Oross) 









Csodonian Barin 

HCA 

031 556 8235 

Instert 


4.75% 

Yly 


- 

L®T 

Capital Plus 

081 447 2438 

Instant 

£1.000 

4.^% 

ay 

£ 


Chrfspa BS 

Gtassfc Postal 

0800 717515 

Instant 

£2500 

6-00% 

Yiy 







£25.000 

625% 

Yly 



OFFSHORE ACCOUNTS (Orosm) 








r : 

Woolwich Guernsey Ltd 

bttemakmti 

0481 715735 

Instant 

£500 

5.75% 

Yly 



Confederation Bank (Jray) 

Ratable hv 

0534 608060 

60 Day 

£25,000 

680% 

VfcYly 



Bntanma IntonatL Ltd 

index finked 

0624 628512 

90 Day 

£1.000 

660% 

Yly 

- . 


VofVatWB Guernsey Ud 

Otfsftore Key 

0481 710160 

180 Day 

£50.000 

7.00% 

Yiy 



OUAIUUmKD BtoOME BONDS (Not} 







... 


Pnosperty Ufa 


0800 521546 

1 Year 

£15,000 

4.45%F 

Yly 



Proapenty life 


0800 521546 

l Year 

£25.000 

5.6QW 

yw 


— 

Prosperity Life 


0600 521546 

3 Year 

£5.000 

030 %f 

Yly 



NaiWesl Life 


Local branch 

4 Year 

£5.000 

675%F 

Yiy 



Manutto Rnandal 


0438 747414 

5 Year 

£50.000 

7.45%F 

YV 


nat ional aarows */c« a bonus taro— j 


Investment A fC 

1 Month 

£20 

525 %G 

YV 

Irtcame Bonds 

3 Marth 

£2,000 

650%H 

MV 

CapM Bonds H 

5 Yew 

£100 

725%F 

OM 

Hrst Option Bond 

12 Month 

£1.000 

600%R 

YV 

Pensioners GIB 

5 Year 

£500 

7.00%F 

MV 

HAT SAVINGS CERTIFICATES (T*X Free) 

41st Issue 

5 Yeer 

C100 

5.40%F 

OM 

70i Index tinted 

5 Year 

000 

3.00%F 

OM 




+lnfln 


ChHdrens Bond F 

5 Year 

£25 

?^5%F 

OM 


IMs table covers major banka and BuUcflng Societies only. An rates (except those under heading Guaranteed Income 
Bonds) are shown Gross. F a Fixed Rate (AS other rates are variable) OM = Interest paid on maturity. Net Rate. P- 
By Post only. B* Feeder account also required. G= 5.75 per cent on £500 and above,- 8 per cere on £25,000 and 
above. H? 6.75 per cent on £25,000 and above. \= 6.40 per cent on £20,000 and abov&Souve; MONEYFACTS, The 
Monthly Guide to Investment and Mortgage Rales. Laundry Loke, North Walsham. Norfolk. NR28 08D. Readers can 
obraln an introductory copy by phoning 0692 500677. 


Who said you* 
business cant 



and earn 4 . 00 % 

gross 

OH oar 24 hour lint: 071*526 0879 or daring office hours: 071-203-1550 


You can have 60 free 

transactions per month, 

and earn a high interest 

rate on a minimum 

deposit of £2001. 

ALLIED TRUST 

SS BANK 

Ljram Bffcr .'5 OtMWf I till, Unlnn Fi « : \T 


Boost 

for 

bonds 


R egular readers of the 
Highest Rates table 
may have noticed the 
Interest on guaranteed Income 
bonds creeping up over the 
past few months, particularly 
on longer-term investments, 
writes Bethan Hutton. 

Three months ago, the best 
rate for a five-year guaranteed 
income bond was 5.7 per cent 
net. Two months ago, it was 6L5 
per cent, one month ago 6.9 per 
cent Now, it has reached 7.45 
per cent Generally, rates are 
slightly lower for monthly 
income. 

Anyone who invested in 
March will now be regretting it 
as guaranteed income bonds 
are fixed-rate, fixed -term 
investments. The question for 
anyone considering investing 
now is whether to hang on for 
a while in case the trend con- 
tinues, or to lock in to the pres- 
ent rates in case they fall. 

Economists have been pre- 
dicting base rate rises later 
this year, but fixed investment 
rates may have risen already 
to take this into account Vari- 
able rates could still have fur- 
ther to go, however. 

Chase de Vere's Moneyline 
says many investors are hedg- 
ing their bets by dividing their 
savings between fixed and vari- 
able rate accounts until the sit- 
uation becomes clearer. 

Many building societies are 
offering escalator bonds or 
stepped interest accounts, 
which start by paying a rela- 
tively modest interest rate in 
the first year and rise by a 
fixed amount each year for five 
years. 

These may appear to offer 
the best of both worlds in the 
form of fixed, increasing rates. 
But, in fact, if interest rates do 
rise over the five years, the 
pre-set increases may not be as 
high as the general increases 
in variable rates. Also, penal- 
ties for early withdrawal tend 
to be stiff on these accounts - 
if this is even possible. 


personal allowances are lim- 
ited to individuals who are res- 
ident in the UK unless that 
Individual can satisfy the 
board of the inland Revenue 
that they are a Commonwealth 
citizen, a citizen of the Repub- 
lic of Ireland, or foil within 
other limited categories. 

In addition, personal allow- 
ances sometimes are available 
to citizens of other countries 
under the terms of a double tax 
treaty. 

Assuming your daughter is 
still a British citizen, I suggest 
that she completes form FS122 
and forwards it to her inspec- 
tor of taxes quoting the provi- 
sions of section 278 ICTA 1988. 
(Answer by Barry StiUerman). 

No tax on 
these deals 

I am neither resident nor 
domiciled in the UK. Are any 
of the following transactions 
subject to UK tax? 

1. Shares bought outside 
Britain and later sold there. 

2. Shares bought in the UK 
and later sold there. 

3. Shares bought in the UK 
and later sold elsewhere. 

Would any of the rales be 
different depending on 
whether there are gains or 
losses on the transactions? 

■ As you are neither resident 
□or ordinarily resident in the 
UK (and presumably are not a 
Lloyd's underwriter or engaged 
in any trade, profession or 
vocation in the UK), the 
answer to each of your ques- 
tions is no. 

You might like to write to 
the Inland Revenue Public 
Enquiry Room, Somerset 
House, Strand, London WC2R 
1LB, for a copy of the free 
booklet £R20 (Residents and 
non-residents: liability to tax 
in the UK). 

Separate 

exemptions 

Under the inheritance tax/cap- 
ital gains tax legislation, are 
husbands and wives each 
allowed to make gifts of £3,000 
a year free of liability to tax, 
or is this amount to be shared 
between them? 

■ Both the £3,000 annual 
exemption for inheritance and 
the £5,800 annual exempt 
amount for capital gains tax 
apply to each person: there is 
no sharing of relief between 
husband and wifa Ask your 
tax office for the free leaflet 
CGT14 (Capital gains tax: an 
introduction). 


CGT and the Revenue 


T he Inland Revenue's 
promised revision of 
its concession on 
assets of negligible 
value in relation to capital 
gains tax was published this 
week*, writes Maurice Parry- 
Wingfield, of accountant 
Touche Ross. 

The purpose of making a 
claim for negligible value is 
normally to crystallise (for 
CGT purposes) a loss which 
may then be set against liabil- 
ity on other gains. 

The concession allows the 
taxpayer some flexibility in 
choosing the most useful tax 
year in which to make the 
claim - but with the caveat 
that the choice should not 
allow him to get more indexa- 
tion allowance than the 
£10,000 transitional relief 
announced in April. 

A negligible value claim 
made after November 29 1993 
(Budget day) might still be 
backdated to an earlier time 
when the asset had a negligi- 
ble value. But the indexation 
allowance np to the date of 
that deemed disposal can be 


NEGLIGIBLE VALUE CLAIMS 


Deemed disposal 


1/6793 


1/4/95 
1993/94 1994/95 


Gatos in yew 

15.0 

25.0 

15.0 

25.0 

Loss on deemed dis- 
posal 

(10.0) 



(10.Q) 

indexation 

(2-0) 



12.5) 


To 



12.5 

Other losses (93/94 
only) 

(7-Q) 


(7.0) 


Losses c/I and b/f 


(4.0) 



Annual exemption 


(5.8) 

(5.8) 

(5.8) 

Taxable 


15.2 

22 

6.7 






r« raring tfnwgh not mating back i9L2-{2£+e.7>e.3 x (say) 40% • 2.5 
' bickxAng aacrino t uluraun Mnuanca wNcfi can only ba uted M 1 9 & 4 - 1 &K 


Source: ToucrmRosa 


relieved - up to the aggregate 
of the £10,000 transitional 
relief announced previously - 
only in 1993/94 and 1994/95. 

In order to take advantage 
of the transitional relief, the 
negligible value c laim must be 
matte by April 5 1995. Whether 
it should be backdated, so as 
to give rise to an earlier 
deemed disposal, will depend 
upon the ImtividnaTs mix of 
gains and lasses on other 


assets, losses brought forward, 
and annual exemption. 

The table provides an exam- 
ple of an asset that became of 
negligible value on June 1 
1993 and for which a negligi- 
ble value claim is submitted 
on April 1 1995. In ibis case, 
the claim should not be back- 
dated because a year's annnai 
exemption would be forfeited 
- and the indexation reduced. 
'Extra-statutory concession D28 


Annuities 


With returns Increasing by np 
to 15 per cent over the past few 
months, the annuity has 
bounced back from a 20-year 
low. 

Indeed, it has now reached 
a level where it can now provide 
a guaranteed income for life 
at rates often surpassing other 
regular products. 

Moreover, further increases 
this week mean those receiving 
annuity income can at last look 
ahead to the prospect of even 
more positive growth as the year 
goes on. 

Inflation fears over the past 
few days saw the gross 
redemption yield on the 15-year 
gilt move to 9.07 at dose of 
business on Tuesday. 

This was a rise of 3&8 per cent 
compared with four months ago: 
on January 20, the rate was 6.63 
percent 

Just how quickly the market 
has risen can be seen from the 
rates available to a 60-year-old 
male using a £100J700 personal 
pension fond to tray an annuity 
which is paid monthly in 
advance, with a five-year 
guarantee period. 

If he bad retired on January 
20 1994, the Prudential 
Assurance Co. would have paid 
him £8.929.08. 

The same fond and the same 
type of annuity from the 
Prudential would now bring 
him £10^44.88 a year had he 


LATEST ANNUITY RATES 

Laval annuity 

Mate ana 55 

Armdty 

Female age 50 

Annuity 

Months movement +3.9% 

Months movement +2.6% 

EqiMtabte Lite 

E9 397.00 

London & Manchester 

£8,721-96 

Canada Life 

£9,729.60 

Scottish Widows 

£8,690.04 

Prudential 

£9.65436 

Prudential 

£6677.92 

Mate age 60 

Annuity 

Female 60 

Annuity 

Months movement +65% 

Months movement +3.2% 

Equitable Ufa 

£10315.00 

London & Manchester 

£9.762.00 

Canada Life 

£10.600.92 

Canada Lite 

£9.723.72 

London&Msnchester 

£10300.00 

Equitable Life 

£9.630-00 

Mate ago 70 

Annuity 

Female age 70 

Annuity 

Months movement +05% 

Months movement +1.t% 

Canada Lite 

£13,79338 

Canada Ufe 

£11.952.00 

Equitable Ufe 

£13,763.04 

Equitable Life 

£11.832-00 

RNPFN 

£1375696 

RNPFN 

£11.825.88 

Joint Ufe - 100% spouses benefit 

Mate 60/Ftanate 57 

Annuity 

Male 65/Femate 63 

Annuity 

Months movement +3.0% 

Months movemenl +3.2% 

Canada Ufe 

8,866.20 

London & Manchester 

£9,527.04 

London 6 Manchester 

£8.822.04 

Canada Life 

£9,485.52 

Prudential 

£0,771.04 

Prudential 

£9.329.88 

AM payments in monthly to Mbanca. Ftotaamasal l Juno 1994. Figwt muiM a purchase pnee at 
ttOOMO and an ahoum gnsa. PNPfN amUaa nmUk oily to mean thanuntog and alliaa 
automatons. Run WDM by dm AmJty SUen> LtnM Entsipnam House. VUSS Upper Cn and 

London, set spa r* on eso +aw 




purchased it an June 1. This 
corresponds to an increase of 
14.7 per cent 

Other life companies also have 
shifted their rates upwards to 
reflect the market surge (as 
shown in the table above). 

One such is Scottish Widows, 
which has upped the rates 


offered to the same man baying 
the same annnity by 14.5 per 
cent over the same period, 
paying £10,180.08 a year as at 
June 1 compared with £8,890.08 
on Jannary 20. 

Peter Quinton. 

Annuity Bureau 



ALL GREEK TO YOU? 


ft needn’t be. 


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speciaBy written for the investor with a global perspective. 
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ill NAIYC IAI.il M LS ( 

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IMbwMss 
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Please return to Kevin Phillip*, Tho International, Greys toko Place, Fetter Lane, 

Job Status 

I 1 1 PiopHcMoSof^inpioyod/PBrtrMr 

□ 2 Empfayad 
03 CoMbttaitf 

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tMbm al BuolnoM 

□ \ Financial Sarvtwo 

n 2 Construction 

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l~l< Transport/T raveVConvnunkatlons 

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Sign ham only H you wtah to racatw a 
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Typoa at Inwat w ent currently beta 
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fi Sonde 

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O 7 Uni TrosB/MumsJ Fimcfc 

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MINDING YOUR OWN BUSINESS 


D eer roaming in the 
parkland surround- 
ing his office in a 

Welsh mansion t nakfl 

a curious contrast 
with the sight of his £200,000 mobile 
recording studio parked nearby as 
Mike Evans ponders on three of the 
most turbulent years in the 15 year 
history of his Welsh-based record- 
ing business. 

Far the past 10 he has specialised 
in recording Welsh choirs and 
issued several hundred releases. In 
1989 he spent £100,000 upgrading his 
mobile studio to cater for the 
increasing amount of subcontracted 
sound recording work be was doing 
for television companies. 

At the same time he moved the 
two-man company from Swansea to 
its present home: the National 
Trust-owned 17th century Dinefwr 
House, set in 450 acres presided 
over by a medieval ruined castle, 
perched on the edge of the Towy 
valley above the town of Llandeilo 
in west Wales. 

The move coincided with a down- 
turn in the subcontract work. “With 
recession-led cutbacks location pro- 
ductions were the first to be hit No 
sooner had my expansion plans 
begun to bear fruit when the sub- 
contract work came to a juddering 
halt," said Evans, the sole director 
of Black Mountain Records. 

Fortunately Evans had a good 
track record. With the aid of some 
first-rate freelance technical staff he 
had recorded Dame Kiri Te Kan- 
awa, Dennis O'Neill and the now 
"retired” boy soprano Aled Jones, 
at locations as diverse as the Royal 
Albert Hall, Giyndeboume and 
opera houses in Italy. He also had a 
steady turnover and a £200,000 over- 
draft Cadlity. 

What could have been a very 
shaky period turned out to be no 
more than a blip. But when he 
diversified m f»". in late 1992, with, 
a tie-up with the world's largest 
mobUe facility company - Flee- 
twood Mobiles - the arrangement 
came to nothing when Fleetwood 
went into voluntary liquidation. 
Evans ended up with the Fleetwood 
name, a mobile studio, complete 
with £60.000 advanced mixing desk, 
sports the Fleetwood livery. 

“Perhaps the main lesson I learnt 
is that you should take great care 
before expanding in too many other 
directions when you have a good 
core business,'’ said Evans, 43. “It 
realty is a case of the old adage: 80 
per cent of your business will come 
from 20 per cent of your custom- 
ers.” 

In the case of the choirs this cer- 
tainly proved true. “With, the reces- 
sion and most choirs representing a 
cross-section of their communities 
one might have expected them to be 
among the first organisations to be 
affected by the adverse conditions, 



A life of highs and lows 

Mike Evans records Welsh choirs. CEve Fewins visits Evans in his idyllic base 


especially in former pit villages,” 
Evans said. 

“However the opposite has been 
the case and we have just enjoyed 
our busiest year yet, with a turn- 
over of £ 200 ^ 00 ." 

He attributes this to good ground- 
work in the early years, plus the 
skill of farmer BBC engtner Geoff 
Atkins, a freelance available when- 
ever Black Mountain needs him for 
an important recording. 

“From the outset I knew that 
gaming a reputation with the 500 or 
so choirs in Wales would take a 
long time,” He said. “Recording 
used to be regarded with very 
mixed feelings by choirs, mainly 
through bad experiences and 
advice. I like to think Black Moun- 
tain has pioneered a fresh approach 
to the art of choral recordin g that 
has won us many converts over the 
years. 

“Initially I had to offer every pos- 
sible incentive to gain clients - 


even to offering six months settle- 
ment terms on unsold stock, which 
used to give my bank manager pal- 
pitations. On average, the return in 
those early days was only about S 
per cent after tax. Nowadays I 
expect a typical deal to involve 
about 1,000 cassettes or CDs, with 
the choir agreeing to sell a mini- 
mum of 500. The standard price is 
£5.99. 1 look for a return of around 
20 per cent after tax. We are expect- 
ing to turn over £250,000 this year. 

“The choral world in Wales is like 
one big dub,” Evans said. “Choirs 
are probably the last bastions of 
community spirit in most areas. 
People sing for enjoyment and their 
camaraderie is overwhelming. 
Black Mountain Records is an 
extension of that tradition, and 
great fun to run. 

“Although there is some concern 
over the future of the choral tradi- 
tion in Wales, as long as the com- 
munities are there I believe the 


choirs are an integral part of than 
and will stand the test of time.” 

Evans is steering the Black Moun- 
tain road train towards Bit giand. *T 
have taken the truck to Scandina- 
via and Italy, so why not England - 
or for that matter, the rest of the 
UK?” he said. “There are more than 
2,700 choirs in mainland Britain so 
we only at present service 20 per 
cent of the market” 

Last month Evans completed 
repayments of a £40,000, 8 per cent 
loan from the Welsh Development 
Agency. He took the loan in 1989 for 
vehicle refurbishment The b alance 
of £60,000 was met by his bankers, 
Lloyds, and has already been 
repaid. By late May he should he 
the owner of a company worth 
around £500,000 with no debts and 
only one fulltime employee - assis- 
tant Lee Lewis. 

“It will be a nice position to be in 
after working in a financial strait- 
jacket for the past three years," 


Evans said. 

“With an increaang number of 
bookings in England and the TV 
work starting to gam momentum 
again things are looking good.” 

Evans and his landlords. The 
National Trust in Wales, plan to 
turn Dinefwr park into a centre for 
music, staging a variety of summer 
open air musical events. 

“Wales Is the land of song, yet the 
range of music offered to summer 
tourists has been very limited- We 
intend to do somethig to try to over- 
come this," he said. 

“Tilandeflo is an ideal location for 
this. It is close to the M4 and an the 
A40 - the main artery for tourists 
from the Midland* to Pembroke- 
shire. I am not only looking forward 
to recording more choirs, but also 
towards hel p in g promote the Welsh 
musical tradition to visitors.” 

■ Black Mountain, Heaton House, 
Dinefwr Park, Llandeilo, Dyfed 
SA19 6RT. 0558 823864. 


Computing/David Carter 

Accounts an 


open 

T he best selling personal 
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loss statement sheet, VAT 
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customise each of them with a 


book 

report-writer which I can only 
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Days” this means it actually comes 
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QuickBooks is excellent. 

For the business that buys things ' 
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holds a selling price but not a cost 
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Loss account MYOB has these tear- 
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well worth the extra money (£B& 
from Soft Numbers, 0992-451551). 

Intuit say that QuickBooks Is 
“designed for time-pressured busi- 
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pared with DOS. QuickBooks is 
therefore ideal for the owner-man- 
ager of a service or jobbing com- 
pany who is already a keen user of 
products such as Excel or Atm Pro. 

Finally, a caution, in 20 minutes 
an ill-disposed person could change 
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books. I am surprised that the Instir 
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far accounts packages such as 
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rewrite the past 

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The absent 
power 


Continued from Page 1 
Khan, by the French under 
Louis XIV and then Napoleon 
(who is stfll a great hero to 
them). 

“But then when the Germans 
became strong, they poshed 
oat from the centre towards 
the fringes. They had been 
doing this in the early Middle 
Ages. Then again after the 
tom of this century. 

“Bismarck in his later years 
understood the difficulties of 
this geo-strategic situation, 
and tried in a very En glish 
way, very pragmatically, to 
maintain a balance of power in 
Europe, in order to prevent a 
coalition against Germany. 

“We are not acting simply 
from idealistic reasons in say- 
ing Germany must bind itself 
in (to Europe). I am relying on 
very solid historical experi- 
ence, which makes it clear to 
me that we have to bind our- 
selves in to greater entities in 
order to avoid repetition of the 
grave mistakes under Kaiser 
Wilhelm II and the unbeliev- 
able crimes under Hitler." 

He is uncertain If the argu- 
ment is enough to persuade 
good Germans to remain good 
Europeans. 

Robert Leicht, editor in chief 
of Die Zed. is more sanguine. 
“Our European commitment 
for decades has been a compen- 
sation for the fact that we 
didn’t have a decent nation 
state," he says. “We were dis- 
credited by Hitler and divided 
by the Cold War. The consen- 
sus on Europe was the only 
budding left to live in. 

“The question after 1989 Is 
whether this , is a real consen- 
sus, or was it a psychological 
or tactical smokescreen? My 
answer so far is that the basic 
(European) conviction is much 
stronger than I supposed.” 

Professor Heinrich August 
Winkler, of the Humboldt uni- 
versity in former East Berlin, 
sees two great challenges to 
Germa ny in the immediate 
future, which are not necessar- 
ily easy to reconcile. 

“On the cam hand, it has to 
hurry along the Inner, psycho- 
logical unification process, 
which in view of four decades 
of mutual alienation means 
nothing less than rebuilding 
the German nation. On the 
other hand, the Europeanising 
and Westernising of Germany, 
probably the most effective 
Insurance against a relapse 
into German nationalism, has 
to proceed.” 

When Herzog was elected to 


be the next German president, 
many on the left decried his 
apparently conservative cre- 
dentials. Yet his statements cm 
nationalism have been dear. “I 
do not believe that national 
feeling, or even national pride 
- a concept which I treat with 
extreme caution - can still be 
a motivating factor for our peo- 
ple,” he said. As for the idea 
that the German people share 
a “common blood” - still 
enshrined in the legal defini- 
tion of a German national - he 
said it would only be enter- 
tained by an unreconstructed 
Nazi. 

In his acceptance speech, he 
stressed one quality he hoped 
to see in Germans above all 
else - what he described as 
being unoerkrampfL He admit- 
ted afterwards that the concept 
could scarcely be translated 
into English (“You aren't ver- 
krampft, " he said apologeti- 
cally.) It most nearly maams 
being “relaxed", althrmg h liter- 
ally it is the quality of “not 
being cramped up”. He was 
clearly referring to the whole 
debate over national identity, 
who won the war, and who 
won the peace. 

For D aniel Cohn-Bendit, tha 
answer is straightforward 
enough. “We will only be genu- 
inely tmverkrampfi once we 
can talk freely of D-Day or May 
K" be says, “and if we can see 
them as events of liberation. 
That is true for us all." 



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English 
restraint in 
Bond St 

Caroline Charles tells Lucia van 
der Post about her latest shop 


Tiny golden chimes 

Lucia van der Post listens to a £100,000 wristwatch 



Pink wool crtpe Jacket from 1989, ouch jackets are about £370 now 


S omething extraordi- 
nary is happening In 
Bond Street next week 
- a British fksrtgne r is 
opening a shop. Here in the 
street where the big interna- 
tional names such a$ Versace 
and Chanel, St Laurent and 
Herm6s have their flagship 
stores British designer Caro- 
line Charles has decided to 
open up for business. 

One is tempted to ask if she 
is entirely right in the head - 
this, after all, is the street 


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crip® wafato oat with mother-of-pearl buttons, £365 


EXHIBITION 

M 

Judemaks Piguet 

A Tribute To Horological Excellence 




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■ . Yon are invited to view the important 

’ Private Museum CoUectioa of Audemare Piguet 
bdrtg brought to England for the first tune to mark the World Launch 
of the "Gra«deSoooerie" vTbt watch exclusively at Asprey 

% ;. WEDNESDAY 8TH - SATURDAY 1STH JUNE 1994 

The exhibition will include the finest Antique Pocket Watches, exceedingly rare pieces with 
•■■ specific technical features and a few very special Enamelled Gold Pocket Watches 

The complete Audcmars Pignct contemporary tolled kin will be on view and available lor <ak 





pr^y 


where Pierre Cardin, Etienne 
Aigner, Chaumet and Birger- 
Christiansen came to grleL But 
Charles smiles serenely and 
says that she is “quite, quite 
sure that it Is time to open in 
another area of London. 

"We were on a roll, you see," 
she teDs me. “The Beauchamp 
Place shop is a success, the 
licences in Japan are doing 
well, the business has until 
now been totally owned by me 
but I found I could borrow 
money hum the City to expand 
amt when I found the shop in 
Bond Street that seemed the 
perfect answer.” 

Indeed she may be right - 
later in the year Calvin Klein, 
Donna Karan. Joseph and sev- 
eral o ther fashion luminaries 
will be opening in Bond Street, 
suggesting a kind of collective 
vote of confidence in the 
revival of the street's fortunes. 

Charles IS a q nintBKsanHalTy 
TEn gtiaVi desig ner an ri her suc- 
cess, as she acknowledges, is 
founded on understanding per- 
fectly the world the English- 
woman moves in. She under- 
stands the grand occasion 
clothes the season calls for as 
well as the Ewg^iah preference 
for reticence and restraint Her 
dnthflw are, above all, ladylike. 

“Anybody who has to launch 
a ship, sing at Bayreuth, get 
married or make a public 
speech could be a customer of 
ours,” she tells me. “We rwaiw 
clothes that stand up well to 
public scrutiny and I am abso- 
lutely obsessed with making 
sure the clothes work. I like to 
make the basic lines in plafn 
fabrics that don't get noticed 
too much and then they can be 
mixed with embroideries and 
special weavings, what I call 
collectables. AH the time I tril 
the design, team to check - are 
they warm enough If it is for 
Glyndebourne, can they move 
their arms properly in that 
sleeve, will the skirt deal with 
a windy day." 

She has been providing these 
special clothes in her own 
quiet way ever since 1363 when 
she showed her first collection 
in her tiny fiat and both Wool 
lands (the chic Knightsbridge 
store which today is Harvey 
Nichols) mid Harrods decided 
they had to have it 
“You couldn’t begin to call it 
a show " she says, “We could 
hardly afford a hanger, let 
alone a show. I used to get my 
hangers from Sketchley and 
buy my labels from Harrods 
which 1 would then rush back 
to sew in before delivering the 
clothes back to Harrods. 

Tt was incredibly lucky tim- 
ing - Mary Quant bad beaten a 
great path and a little group of 


No* Fkol Miva. I -uralm 
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A shopper’s 
mailing list 

I f you have ever longed to 
get hold of yukatas from 
Tokyo, puppets from 
Bangkok, a bureau from 
Portugal or even just fishing 
rods from Nottingham but 
seem unlikely to malm it there 
in person then Richard 
McBrien's book The Global 
Shopper is the book for you. 

He starts with the boring but 
essential bits - how to order, 
what to do about customs and 
VAT and cards and bank 
drafts, as wen as looking out 
for guarantees and pitfalls, all 
those vital bits of information 
that mall order fans so often 
forget about when they first 
pick up catalogue and pen. 

Then McBrien moves on to 
the more interesting bits for 
the shopaholics of this world - 
where to track down the best 
jeans, suits from Italy, cam- 
corders or antiques from Hong 
Kong, contact lenses from Cal- 
ifornia. It contains lots of 
useful indices and all for 
£9.99. 

■ Global Shopper, published 
by Headline Books, 404 popes, 
£9.93. 

LvdP 


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or 


CaroHne Charles 

us were able to follow. We 
swung along through the 1960s, 
all short and sharp and then 
we moved into slightly hippy 
but very beautiful embroidered 
Lebanese inspired clothes, then 
into gipsyish boots and petti- 
coats. 

“We got another boost when 
oil brought the Arabs to Lon- 
don and they likRri our sequins 
and embroideries but it wasn't 
until the 1980s that 1 finally got 
the courage to open my own 
shop in Beauchamp Place. It 
was absolute heaven to have 
my own clothes banging up as 
I chose.” 

It was not long before she 
realised that many of her cus- 
tomers wanted a total service. 

“If you buy here,” says 
Charles, “not only will we 
make sure the dress or outfit 
fits (there are alterations 
experts on the premises at both 
shops) but we will trim your 
hat, find you a pair of shoes, 
give you a cup-of-tea and even 
find something as s mall as a 
handkerchief." 

Hie new shop manages to be 
both intimate and grand. There 
are the trademark cream and 
black interior, spacious chang- 
ing-rooms, helpful assistants 
and there on the rails, the hall- 
marks of the Caroline Charles 
style - an investment ev ening 
dress on a hanger there, a dis- 
creet navy suit that would go 
from school-run to cocktail 
party taking in the boardroom 
in between. 

There is lots of her favourite 
wool erdpe (“perfect for the 
English climate”), soft, floaty 
skirts, lean waistcoats, very 
plain and simple wide trousers 
and a palette that is mainly 
cream and black, ivory and 
honey and maize. 

• Anyone still dithering about 
how to dress for the occasions 
that makfl up the English sea- 
son could do worse than look 
at the new shop at 170 New 
Band Street, London Wl. 


T he world of horology 
is not one with which 
I am overly familiar, 
largely for the 
extremely good reason that 
developing an interest in fin® 
watches seems like a hobby I 
cannot afford. I already have 
more than enough expensive 
hobbies to keep my bank man- 
ager irritable. 

But not everybody, fortu- 
nately for the (mainly) Swiss 
watch industry, thinks like me. 
There is, it seems, a thriving 
clutch of collectors who are 
enamoured of horology and 
who have the funds the hobby 
requires (and believe me as 
funds go this is well Into the 
polo- playing, yacht-owning 
class). 

Indeed, so convinced is 
Asprey of the market for these 
rarified pieces that it is next 
week launching what it c e ll s a 
“world first" - a Grande Son- 
nerie wristwatch made by 
Audemars Piguet. 

If you are new to these 
things you may be wondering 
exactly what a Grande Son- 
nerie wristwatch Is. It is a 
watch that strikes the hour 
and the quarter every quarter 
hour while if set to petit son- 
nerie it strikes just the hour on 
the hour. In addition it has a 
quarter repeater so that at any 
time the hour ami the quarter 
can be struck by simply press- 
ing a button. It can also, those 
who believe in sleeping qui- 
etly, will be happy to hear, be 
set to be ■rifant. 

Not, of course, that these 
watches get worn a great deal 
Most of them reside in drawers 
or fancy cabinets for, as 
Asprey points out, “the sort of 
people who will buy this watch 
are bound to have several oth- 
ers and certainly never wear a 
single model all the time.” 

In this rarified world one can 
spend thousands and thou- 
sands of pounds on a watch 
and then Let it pass much of its 
life between velvet pads, which 
I suppose, is much the same as 
happens to expensive jewels. 

There is, however, real tech- 
nical achievement behind this 
watch - until now all the 
Grande Sonnerie features have 
only been found in a few pock- 
et-watches and it has taken 
four years to develop the min- 
iaturisation of so many compli- 



Hi! f 


Rare 1919 enameHed gold pocket watch with ultra- thin movement 


could pass almost unnoticed in 
all but the most horologically 
sophisticated of company. 

For most of us, of course, 
these sums are mere doodlings 
on a page but Audemars Piguet 
does have a few more accessi- 
ble treats. For instance its 
offers the ultimate sturdy 
stainless steel sports watch, 
what it calls its Royal Oak 
model, for just £3,000 and to 
celebrate the launching of the 
Grande Sonnerie wristwatch It 
has brought some of its most 
original and beautiful museum 
pieces to Asprey at 165-169 New 
Bond Street, London Wl where 
they can be seen and admired. 

A few special pieces will be 
for sale and a master watch- 
maker from the Audemars 
Piguet workshop will be show- 
ing what precision watchmak- 
ing is all about 

The Grande Sonnerie wrist- 
watch has to be ordered - each 
one takes many months to 
make - and the exhibition 
runs from June 8 to Saturday 
June IS. 


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• ' ' ' X ' ‘ * * 1 


The (hand* Sonnarto wristwatch 

cated mechanical parts neces- 
sary to produce a wrist ver- 
sion. The watch itself will sell 
for about £100,000, it is entirely 
hand-made and, for a watch 
that is so vertiginously expen- 
sive, it is surprisingly under- 
stated. A simple 18 carat yel- 
low gold case on a leather 
crocodile strap would mean tt 


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X WEEKEND FT 


FINANCIAL TIMES WEEKEND JUNH-WKINB MW* 


FASHION 


Through the looking glass 

This years prime Ascot accessory could well be a raincoat. But , whatever the 
weather , Avril Groom knows the unwritten dress rules for the big occasion 


I f your only experience 
of Ascot is distilled 
through the the lenses 
of the paparazzi you 
could be forgiven for 
thinking it an event of almost 
un parallelled vulgarity and 
excess. 

But those who go know that 
there always are wonderfully- 
dressed women at Ascot They 
rarely attract the cameras, 
they wear quiet colours and 
flattering proportions and rig- 
orously apply the “less is 
more" rule - only the simplest 
p laines t outfit ran take a real 
statement of a hat 
If they break the Ascot rules, 
they do it so elegantly that no- 


one notices for the dress rules 
are unwritten, not engraved on 
tablets of stone. 

According to Laura Thomp- 
son-Royds, of the Royal Enclo- 
sure office, women should 
wear “formal day dress with a 
hat covering the crown of the 
head" and “formal” is the key- 
word. Trousers are discouraged 
but not banned if part of a suit 

One of last year’s most suc- 
cessful outfits was a plain, 
cream, crepe suit with wide, 
soft trousers that balanced a 
big straw platter hat scattered 
with (lowers. 

On short skirts the discre- 
tionary rules are frankly age- 
ist The young and lithe-limbed 



Ivory sflk cnflpe suit; £915, patent shoes, £125, all from Gucci, Old Bond 
Street, W1 and Stome Street, SW1. Banana fibre hat, £550 to order from 
Phfflp Traacy 


would not and should not get 
away with it; the pudgy over- 
408 probably would (and 
should) not, on the valid 
grounds of suitability. 

In the late 1980s an Ascot 
uniform evolved, of tailored 
jackets, straight skirts, bright 
colours and gilt buttons. It per- 
sisted right up until last year 
when only a few brave souls 
put an elegant toe into the 
misty waters of tangling chif- 
fon and soft ruffles. This year 
the change is writ large in 
mainstream fashion and get- 
ting it right at Ascot - that la 
looking both soft and formal - 
requires some thought 

There are two main options. 
One, in spite of its suspect sta- 
tus, is the trouser suit as the 
easy alternative to both the 
long; soft skirt (hard to make 
look formal) and this year's 
very short length. The other is 
the short skirt in its new soft 
form. Both need careful acces- 
sorising to achieve the right 
degree of formality. 

Trouser suits smack of 
casual or working clothes 
unless they are in a drape-like, 
luxurious fabric such as crSpe, 
heavy silk or a high-quality 
viscose mfo- A tailored jacket, 
short or long, and wide trou- 
sers is the dressiest option. 

Hats with trousers are 
tricky. A simple, panamn^ ag ^ 


Hair and make-up by 
HELEN BANNON for Bannons 
Hair Design of Hampton Hfil 

Pictures by BEN COSTER 


style looks too sporty while a 
confection of vefis and bows Is 
too fussy. Patricia Underwood, 
the New York-based British 
designer whose simple, hand- 
stitched styles in soft, pliable 
straw (available from Browns 
and Harvey Nichols) are famed 
for their flattering effect, says 
the hat must always be “cloth- 
ing driven.” So choose the out- 
fit first 

“With trousers I would sug- 
gest a brim that turns up to 
keep the eyeline up, and a 
structured style to go with the 
tailoring. It should be simple 
but adding self-coloured silk 
flowers makes it dressier," she 
says. 

A top hat is one natural part- 
ner for trousers, but choose a 
lightweight style with a femi- 
nine trim to avoid the drag 
artiste look. Dressy shoes for 
trousers are not easy. Heels 
can look graceful with wide 
trousers but stilettoes are inap- 
propriate. Gucci’s new block- 
heeled loafer with squaredoff 
toe gets it right 

The new short skirt, a youth- 
fill A-line, looks most formal 
not as a skirt at all but as a 
dress with matching jacket or 
coat - a look long overdue for 
a comeback- Shapes vary from 
Ben de Lisi’s bias-cut soft 
fluted version to Catherine 
Walker’s svelte line. 

Dead straight skirts look 
dated but the less fullness 
there is the less likely you are 



BREITLING 




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Beige fragged wool jacket, from £1100, sleeveless drees, £435, both to 
order by Catherine Waiter for toe Chaises Deaifpi Company, Sydney 
Street, SW3. Le^tom straw hat, £395 to order from PhSp Treaty, 
Ozabtfi Street, W1. Brown grosgracn handbag, £190 from Anya 
HMmarch, Walton Street, SW3. Gold e an l uya with d to nond a , rabies and 
tanzaiiti», £5750 from Thao Fennell, RSham Road, SW3. Just viable in 
the picture are hold 19 a tocfcta u a SW, £1049 from SeHridgas, Oxford 
Street, W1 


to emulate the woman who 
foiled to interest the photogra- 
phers until the wind lifted her 
huge hat and her full skirt sky- 
wards and simultaneously 
every shutter clicked. 

Hardy Amies, an old hand at 







l . 


dressing chilly English occa- 
sions, puts short puffed sleeves 
on a pretty dress in light- 
weight tweed, but the sleeve- 
less or slip dress is a hot 
favourite which can slid** over 
a silk T-shirt or would pass 


\ 


Pale yellow wool tweed dress and jacket to order from Hardy Amies, Savfls Row, W1 (couture from £2000). SOk 
chiffon scarf, £85 from CaroBne Charles. Straw hat, £290 from Harrtd and Heart, St PWBp Street, SW 8 . Gold 
earrings, £1875, from Cartier 

Man's outfit, £860 from Kactett, Jennyn Street, SW1 


muster alone on a hot day 
whereas an off-the-shoulder 
style would not 

This year's prime Ascot 
accessory could well be a rain- 
coat and Aquas cutum have 
caught the dressy mood with 
swingy styles in silk or micro- 
fibre and fondant ahflriag- 

Gnly a pessimist chooses her 
hat to match her raincoat for a 
dress and jacket, says Patricia 
Underwood, “check the should- 
erline carefully as some of the 
new shapes are cut very nar- 
rowly and need a smaller hat 
A see-through brim goes with 
the feeling of lightness." 

Philip Treaty's ba n a n a-straw 
hats fulfil this brief, some 
seeming to defy gravity. 

But even an Ascot hat, says 
Patricia, “should be useful as 
well as looking good." This is 
true of the whole outfit For 
Ascot also read weddings, gar- 
den parties, school speech days 
and big summer occasions. If 
the outfit you are considering 
will not pay its way at all of 
those, then I am afraid it is 
back to the drawing board. 


» i 









r ? atcWn9 trau98ra ’ ^90. net scarf, £40, 

flWn Harbert Johnson. Diamond and pearl 
©Mud*. £5300 from Cartier. P®ari necklace by Tan Thousand TWngs, 
£160 from Browns, South Moiton Street, W1. 










"Oh, come now! You two have something in 
common -/can see you’re both wearing 
Thomas Pink shirts . ” 








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J jFTNAJjCgAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


WEEKEND FT XI 


FOOD AND DRINK 


British tea and torte 


Nicholas Lander visits Betty’s, which serves 2m cuppas a year 


T he waitress apolo- 
gised profusely, 
although it was a tiny . 
mistake, and smiled 
warmly. She was wearing a 
black skirt, .starched white 
blouse, apron and alke band, 
and looked the embodiment of 
the Victorian maid. 

_ But 1 was not on the set of 
television's Upstairs Down- 
stairs, or in a plush T end on 
hotel. X was in Harrogate, 
Yorkshire, in what many con- 
sider to be the BriHah tearoom. 
-Betty's. 

. Taking tea Is a peculiarly 
British custom. This is only 
partly due to the comnwriai 

acumen of British tea traders 
and their forays into India and 
China. Tea is universally popu- 
lar because of its refreshing 


TEA AROUND BRITAIN 

SheBa^s Cottage, Amfcieskte, Cumbria (tefc 05394-33 079). 
The Wage Bakery, Mebnetfay, Cantata (0768-681 615). 

The Canary, Bath $225-424 84$, 

Shepherds Tea Rooms, Chichester (0249-774 761). 

The Tea Shoppe, Dunstar, Somerset $649-821 304). 

The Polly Tea Rooms, Marlborough $672-512 146). 

The Periwinkle Tea Rooms, Sohrarthy Green, west Somerset. 

The Cato Table, Thaxted, Essex $371-631 206). 

The Comer House Tea Room, CricKhoweB, Wales (0873-810 234). 


Many country house hotels offer a good afternoon tea but at 
Sharraw Bay, UBswater, Cunbria (076-848 6301) and Gkfleiflfi 
PuK Chagford, Devon $647-432 387) the view b Just as good. 


The story of Betty's is an 
interesting one. In the early 
1900s Frederick Belmont, a 
young Swiss confectioner, 
arrived in London to ttmItp Mh 
fortune. He eventually, found 
himself in Yorkshire and fell in 
love with the Dales. In 19X9 he 
opened the first Betty's - the 
origin of its name is still 
unclear. 

Belmont's Kmrng was as 
good as his patisserie. Harro- 
gate in the 19306 was booming 
but, unto Betty's opened, there 
was nowhere for Women to go 
unchaperoned. The tea room 
became a great success. 

The surrounding countryside 
supplied its own hairing tradi- 
tions and the finest raw mate- 
rials. Cream was so plentiftil 
that it was served with tea 
until the 1930s when the switch 


LONDON 

An the top hotels, 

The RHz, W1 $71-483 8181), 

Savoy, WC2 (836 153$, 

Dorchester W1 (629 8888), 

Browns. W1 (493 602$, 

the refurbished Waldorf WC2 (836 2400), 
the Capital SW3 $89 5171) 
and not forgetting Fortnum’s Fountain, Wl, (734 8080). 
Lass fancy are Mofeon Bertsux, Wl, (437 6007), 
Hnema cafe, SW1, $23 126$ 
branches of Patisserie Valerie Wl (336 624$, 
Soho, Wl (437 348$. 

OTd SW3 $23 9871) 
and VBandry Wl (224 379$. 


to milk was made. Accord- 
ingly, the price of afternoon 
tea was reduced to six pence. - 
An orchestra played during the 


Belmont secured the Swiss 
succession to. his culinary 
. empire when Ms nephew, Vic- 
tor Wild, took over the busi- 
ness. In spite of its size, Betty's 
still remains a family affair it. 
employs TOO full and part time 
workers and, with the depar- 
ture of rti ami rwi« manufac- 
turer Id, has become one of 
Harrogate’s biggest employers. 

Last year, the four Betty's 


tea rooms (the others are in 
York, Hkley and Northallerton) 
served 1.5m customers with 
200,000 cops of coffee and 2m 
cups of tea. 

In the 1960s, Betty's took 
over its rivals, Taylor’s, and 
runs this as a separate division 
which Mends 570 tons of coffee 
a year and the Yorkshire Tea, 
of which 5m cups are drunk a 
day (Betty’s also supplies, free 
of charge, tea to all the north- 
ern branches of the Women's 
Institute). 

Betty's has flourished 
because of a refreshingly open 


policy towards what it serves 
and whom it employs. In the 
bakery trays of continental 
pastries - Amadeus torte, stru- 
dels ami sift** of Venetian fes- 
tival cake- are stacked next to 
vanilla slices, Yorkshire curd 
tarts and fat rascals, a cross 
between a scone and a rock 
bon. of which mote than 
500,000 are produced each year. 

Yorkshire bakers and confec- 
tioners ate sent to Richemont 
College In Lucerne, which 
accounts for the excellent qual- 
ity of puff pastry and 

rhnmlaflA 

In Mike EBay, the company's 
young coffee buyer, they have 
a true, hard-working 
Yorkshireman. Riley rose 
through the ranks. He begins 
every day with a blind tasting 
of numerous teas an d nnflfrps — 
including those of his 
competitors. He enthuses 
about the different tastes of 
the Puerto Rko Yauco Selecto 
Peabeny coffee and the 1993 
vintage St Helena coffee - of 
which he hnnght the entire 
crop. 

The quality of the tea and 
iwffw is nn questionably high 
at Betty's but, in the main, 
people flock there for scones, 
cinnamon muffins, buttered 
pikelets, chocolate cream 
eclairs, h azelnut meringues . . . 

As JUlian Miller, training 
co-ordinator, put it: “If 
everybody round here decides 
to get health conscious we’re 
in real trouble.” 

■ Betty's, 1 Parliament Street, 
Harrogate HGl 2QU. Tel: 
0423-502746, also for postal 
orders. 



Appetisers/ Jill James 


B ENOAL CLIPPER 


Opening Junb 9 at Butler's wharf near 


Tower Bridge, the Bengal Clipper 


PROMISES TO BB AN INDIAN RESTAURANT 


BEYOND COMPARISON. 


One of the finest private wine 
cellar’s to come on the market 
is to be sold at Christie's on 
Thursday June 16. Some 1&000 
bottles from the world’s great- 
est wine estates, which have 
been assembled over 30 years 
by a private collector, are 
expected to fetch more than 
nxu. 

Many of the wines are so 
rare they hardly ever appear at 
auction by bottle, let alone by 
the case. For example, there 
are seven cases of Chateau 


Cheval Blanc 1947, one of the 
g re a test clarets, and each case 
is expected to fetch, between 
£200,000 to £300,000. 

Other hi g hli g hts nf the cellar 

tndnfltt fli ght cases of OMtown 
La Missi on Haut Brion 1945; 
seven cases of Chateau Mou- 
tan-Rothschild 1959; eight cases 
of Hermitage La Chapefle 1961 
and 16 cases of Gewurztrami- 
ner, Cnvfie Anne Schlumberger 
1976. 

Mixed lots win range in esti- 
mate from as little as £80l 


Wrm AB&AmnuL interior, evoking 


MEMORIES CFTHB CLB9SRS WHICH RACED THE 


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TmB&NOAL CLIPPER IS lARGEENOOCHI TO 


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London 


A DOZEN MORE 


Wednesday, 15th June 1994 
at llam and S.30pm 
a sale of 


REASONS TO SHOP 


Fine & Rare 


AT HARRODS.) 


Wines, Spirits & 


Vintage Port 


A very ipcciai Sale (canning Chilean Mouton 
HortwthM, direct from (he property, back to 1916 and 
in sires up to Ncbuchadnezzara, die cellar oF 
(he finned Bwd csrt a restaurant. Sabo C h a mp ag n e, 
the £m Jeroboam «er sold of Cbapouder's great 
Ermkage Le HaviBan 1990. as wefl as an excellent 
range oT wines to be sold to benefit the 
MUte Mackenzie Appeal Fund. 

. Future Sales: 15d> July. 14th September, J2tb October. 

To order catalogues, £7 (in c UK p&p) 
please can (02M) 84 1 045 
quoting refe ren ce FT94JN. 

Enquiries: 
Sere na Sutcliffe MW, 
' Stephen Mould or Mkhad Egan 
Sotheby's Wine Department 
Telephone 071-408 5051. Fax 071-499 7091 
54-35 New Band Street. London WIA 2AA 


SOTHEBYS 


; i .1 » y. . ‘ 


KXNDKU17H 




City Wine Auction 

13 June 1994 

Far this catalogue 

flexed to your desk, 

. tfial 0839 401 265 


Vinsde Bourgogne 
For stockists, 
tefc 071-409 7276 


calls charged at 
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' (cheap rate) 


4toper minute 
at all other times 

VWpJme«ni>bll5«» 


Harrods has opened a new 
Champagne and Oyster Bar on the 
Ground Floor. On offer, you 
will find French Papillon oysters, which 
are exclusive to Harrods, Irish Rock 
oysters, or yon could try half a dozen Belon, 
also from France. Alternatively, you 
could feast on lobster, Norwegian crayfish, 
dressed crab or a selection of the 
very finest caviars. They can all be enjoyed 
with Harrods own delicious Muscadct, 
-Sauvignon or Chablis. Or a choice of 
champagnes, iced vodkas or Guinness. 

So visit Harrods, where the 
world has always been your oyster. 


UXeoiy 


WANTED 

We win pay auction hammer pries. 
Pay ment groBdatc. Memo telephone 

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Hands Ltd . „ Kvghisbridge. SWIX 7 XL Teh 071-730 1234. 



Bierythmg stops for taa: tea brook at a London factory, 1930. One of the many spiendkl flustrationa I 
2SB pages) prthhed by Hemmarian, 26 Rue Racfem, 750006 tate. 


i the definitive The Book of Tea (FFr 460, 

Deutaeti P*2u* Ltawy 


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•I 














i*.*°*Z 




, I I « / 

‘ 7U^ D° ' 


m 




AT THE CONRAN SHOP, QUAQLINO'S, BIBENOUM AND THE GASTRODROME AT BUTLERS WHARF. 




FINANCIAL TIMBS WEEKENPJW££WE^I»4 



PERSPECTIVES 


H ow splendid life 
would be If one could 
lunch. twice a week - 
or better, twice a day 
- with Janet Holmes 
a Court. At 50 she Is rich, glamor- 
ous and beautiful But she is also 
modest and unaffected to a degree 
that would be thought exaggerated 
in a plain woman. 

We are sitting In San Moritz - a 
choice of restaurant that pinpoints 
the nnana^nlng classiness of Mite 
friendly and resourceful woman. 
San Moritz is a quiet place in War- 
door Street, not far from Soho 
Square, where Janet Holmes & 
Court reigns benevolently as execu- 
tive chairman of Stoll Moss Thea- 
tres. 

As the proprietor of H London 
theatres, she is one of the most 
powerful individuals - certainly the 
most powerful woman - in West 
End theatrdand. 

But San Moritz is not a power 
restaurant. There Is no wheeling 
and dealing. The beautiful people 
are absent There are no luwies 
lurking. It is a Swiss restaurant if 
you please, that serves charming, 
well-cooked food at spectacularly 
non-Swiss prices. 

For ‘L unch with the FT, guests 
can choose any restaurant they like. 
When I asked Janet Holmes & Court 
why she bad chosen this one, she 
said that she liked its friendliness 
and food, and that she could walk 
to it from her office. I told her that I 
didn't drink, but that she must have 
anything she fancied. She asked for 
water, and said that a glass of 
house red might be fun later. I am 
afraid I forgot to order it. She did 
not mention it again. 

1 asked her about Soho. What was 
it like to work in? She replied; U I 
love Soho enormously. I have a flat 
here at present I can walk here for 


Lunch with the FT 

Powerful, glamorous and beautiful 


Michael Thompson-Noel entertains Janet Holmes a Court at a quiet little place . . . 



Janet Hohnw t Cowl; tha at idancFa rdgnlnq nwnwh 
but says she has always enjoyed world. If I weren’t involved in thea 


lunch. I can also walk to every one 
of our theatres at night and walk 
home again, feeling completely safe. 
I may not be safe, but I feel I am." 

Stoll Moss Theatres is part of 
Heytesbuiy Holdings, a. family con- 
cern she Inherited on the death In 
1990 of her husband. Robert Holmes 
d Court the astute and exceedingly 
civilised Western Australian busi- 
nessman whose fortunes had been 
reduced by the global stock market 
crash of 1987. 

On the death, of her husband, 
Janet Holmes & Court could have 
retreated into a life of luxurious 
obscurity. But that is not her way. 
She has tons of vitality, and a com- 
mensurate array of interests. Her 
principal business achievement has 
been to establish Heytesbury as a 
diverse but focussed group. 

Apart from 11 London theatres, 
she owns a Western Australian cat- 
tle company (Heytesbury Pastoral 
Group) and a MelboumeJjased con- 
struction company (John Holland 
Group) that does much, business in 
southeast Asia. 

She also owns a Perth-based 
trucking operation, an extremely 
successful racehorse stud, and a 
winery and restaurant in St Mar- 
garet’s River, at the south-western 
tip of Western Australia. 

To supervise these Interests, she 
has homes in Perth, Melbourne and 
London, and flits hither and thither, 
visiting England four or five times a 



year. 

Her CV of cultural educational 
and charitable interests is as long 
as your aim. She is pro-chancellor, 
for example, of the University of 
Western Australia and a member of 
the board of the Reserve Bank of 
Australia. 

One Of the thing * that aeetna tO 
please her most is Australia’s suc- 
cess with multi-culturism and its 
efforts to in t e grate itself mors fully 
into its part of the world. 

“There are 176 different nationali- 
ties in Australia, 1 ’ says this ambas- 
sador-at-large approvingly. "Ton 
rarely go anywhere and sit with 
people who look the same." 

Intrigued, I asked her about her 
Reserve Bank appointment. Why 
hart they her to join? “Wefl,” 
she said, “they wanted a woman. 


and Fm not particularly flattered by 
tokenism. They fo«d never one, 
yon see. On the other hand, Heytea- 
bury operates in widely different 
geographical locations, and in very 
different businesses, so 1 expect 
they found that interesting.” 

I said, rather clumsily, that I was 
sure that the Reserve Bank of Aus- 
tralia had had hundreds of success- 
ful business women from whom to 
choose for its foray into - uh - 
tokenism. TV> which Janet Holmes & 
Court replied: “Michael, you are 
charmmg.” 

Theatre is her greatest love, both 
in Australia and in London. Stoll 
Moss is spending refurbishing 
her r /virion thpatrp ^ which Infinite 
the Theatre Royal (home to the 
money-spinning Mss Saigon ), the 
London Palladium (awaiting Fiddler 
on the Roof), Her Majesty’s (Phan- 
tom of the Opera), the Lyric and the 
Queen's. 

One of her theatres, the Globe, in 
Shaftesbury Avenue, is being 
renamed the Gielgud Theatre In 
honour of Sir John Gielgud's 90th 
birthday, and also in tribute to the 
late Sam Wanamaker. When Wana- 
makeris reconstruction of Shake- 
speare’s Globe Theatre on the south 
bank of the Thames opens anil 
year, it will be the only Globe Thea- 
tre in London. 

Janet Holmes a Court went to 
school and university in Perth, and 
spent three years teaching science. 


being around creative people and 
Hint her link with Tendon theatre- 
land was Mnwthing riw was deter- 
mined to maintain after her hus- 
band’s death. 

“Theatre is the best business to 
be involved in, and London theatre 
is - or should be - the wefispring of 
what happens in theatre around the 


tre I would like to make motorway 
cones. The money there must be in 
motorway cones! 

“One thing that concerns me is 
th at there are so many revivals on 
in London at present There is very 
little new writing happening in 
West End theatre. 

“hi yririftinn , many of the backers 


have been affected by the foU-out at 
Lloyd’s. Yet the theatre business is 
SScaL as are most others. That is 
why it pays to diversify one s inters 
ests. When Stoll Moss is doing well 
in London, the Australian ^construe- 
tion business may well be in toe 

doldrums. ... . 

“I visit the theatre every night 
when I am in London. Although I 
feel safe is Soho, there is a lot more 
that could be done to perk-u p th ea- 
treiand. For example, there appeal 
to he more people living on the 
streets." Homelessness, she raid, 
had many costs, some less obvious 
than others. a , 

Another of her passions is Austra- 
lian Aboriginal art. She has held on 
to the collection of Aboriginal art 
formed by her husband, and has 
added to It greatly, so that rim now 
owns about 1,500 Aboriginal items, 
out of a total art collection of about 

3,500 pieces. j 

On the other hand, many ocher 
works were sold off. “When I looked 
into it, there was an enormous 
amount of stuff in Heytesbury, 
including, for example, a remark- 
j^tiio number of racebnrsra: about 
160 brood mares, four stallions, four 
studs and horses in training all aver 
the place. Including England and 
the US. 

-However, what Robert had done 
was put in place the foundation of 
great success. The operation is now 
much simplified - 50 mares, three 
stallions, just one stud farm - and 
is now, for the first time, m aking 
money, having recorded some nota- 
ble achievements." 

Racing is an “interest” rather 
than a “passion" for Janet Holmes & 
Court, though for all her jet-setting, 
her favourite place appears to be 
her racehorse stud, 40 miles from 

_ I r uaiiIH 





Listed bed and breakfast Sarah Burgoyne Wen guests In her Grade U toted 17th century manor hausen wHftei earshot of GtyndeOoume opera house 

Stately B&B’s of England 

Christopher Price tests a discreet and classy venture by Britain’s tourist industry 


OlyaQenln 


T here are no advertisements 
for one of the British tourist 
industry's newest ventures. 
Nor arc there any signs out- 
side 200 of the most beautiful places 
Id. Britain which offer guests a night’s 
lodging. 

In fact, anonymity is almost a con- 
dition for those taking part in the 
scheme. “A bed and breakfast sign 
outside the house? Good Lord, no. We 
don't want just anyone calling in," 
said Philip Archer, a retired farmer of 
Welland Court, a 15th century manor 
house set at the foot of the Malvern 
Hills. 

It is a refrain echoed by his fellow 
mansion owners, who, for reasons 
ranging from tmpecuniosity to bore- 
dom, lost month began opening up 
their homes to paying guests. “If peo- 
ple just rolled up willy-nilly we 
wouldn't know what sort they were,” 
agreed Richard Cunni ngham, owner 
of a listed Jacobean manor house in 
Sussex. 

The task of finding the right type of 
guests is being undertaken by Dis- 
cover Britain, a Worcester-based 
agency which, in keeping with its 
publicity-shy members, has limited its 
advertising to overseas tour opera- 
tors. 

“Quite a number of our owners pre- 
fer to be discreet about offering B&B 
and so will take only overseas visi- 
tors," said Andrew Grieve, the agen- 
cy's managing director. Some owners 
bad also expressed concern that 
potential burglars might turn up to 
assess their valuables if they adver- 
tised in the UK. There are plans to 
extend the scheme to the UK in the 
autumn, but Grieve admitted: “I don’t 
expect all the owners will want to 
take part" 

Most owners do it because they 
need the money. Maintaining a large 
country bouse is expensive at the brat 
of times, and the recession has put off 
some much needed repair work. Sarah 
CaUander-Becket. owner of Comber- 
mere Abbey, a Grade I listed 12 cen- 


tury abbey set in an 1 , 100 -acre estate 
in Shropshire, has a double incentive. 
“We have serious maintenance and 
repair projects to undertake and over- 
seas guests will not only help finance 
a new roof for our 16 century library, 
but also help advertise the new sta- 
bles we are converting into holiday 
cottages.” 

“We’re all in it for the money, let’s 
be honest,” said Sarah Burgoyne, “I 
could tell you about my love of enter- 
taining, which would also be true. But 
it’s basically about trying to keep this 
place going," - a Grade II listed 17th 
century manor house, complete with 
lake, te nnte court, swimming pool and 
exceptional gardens within earshot of 
Glyndeboume opera house. Burgoyne, 
a widow with two young children. 
Intends to run the B&B venture 
alongside her Edwardian garden fur- 
niture business. 

Several of the owners are Lloyd’s 
names. Sir Graham Lake, owner of 
Magdalen Laver Hall an early Geor- 
gian mansion, said: Tm not expect- 
ing to make that much from it, but it 
might make up some of the syndicate 
money I’ve lost” 

Belinda HextaU, of 15th century 
Baverstock Manor near Salisbury, put 
a braver fere on it “Yes, we hare got 
a Lloyd’s problem hanging over us 
and it’s a big open syndicate - but 
that’s not really the reason. We hare 
nine bedrooms here, my husband 
works away half the week in London, 
the children are day boarders and I 
like to keep busy." 

Lake, who spent many years abroad 
in the colonial service, said: “We’re 
hoping to meet some interesting peo- 
ple through this. We do really enjoy 
entertaining." 

Grieve agreed. “These are people 
who are used to entertaining, have In 
many cases spent years at it and are 
finding that with their children, grown 
up have these big empty houses. 
They’re the perfect hosts and host- 
esses.” 

The cost of one night's accommoda- 


tion and breakfast is the same rate for 
all the properties included in the 
“Mansions and Manor s” programme - 
£34 per person. Dinner is an addi- 
tional £15 per person. 

Some overseas tourists book their 
chosen houses through tour opera- 
tors. But the most popular method is 
a scheme enabling touring visitors to 
pre-purchase vouchers for the man- 
sion of their riwii* The only condi- 
tion is that they give 48 hours notice 
- and it is at the owners convenience. 
“The beauty of this scheme is that 
you can say ‘no’," said Callander- 
Becket, a view echoed by many of the 
owners interviewed. 

For those country house owners 
considering the scheme, the agency 

‘A bed and 
breakfast sign 
outside the house? 
Good Lord, no. We 
don't want just 
anyone calling in' 


despatches an inspector to check on 
the suitability of the property and 
answer queries. The maximum num- 
ber of guests allowed per night is six, 
a figure which stays within most 
council tax roles and avoids the need 
for a change-of-use planning applica- 
tion for of the premises. 

Most insurance companies are also 
comfortable with this figure as being 
no different from having normal 
house guests. None must sleep above 
the first floor in older to comply with 
fire regulations. 

Capital gains tax does not come into 
play while the B&B activity is not a 
principle use of the bouse. Income has 
to be declared, as with any business, 
but after setting costs against it, 
Grieve said the scheme remains 
“pretty profitable for all concerned.” 


After Discover Britain’s commission 
has been paid, members receive £26 
par guest He estimated that in a good 
week during the summer a house 
could earn £500 net a week. 

The agency encourages its members 
to extend every hospitality to their 
guests and to involve them as much 
as possible in the daily routine of the 
house. This wfll usually mean a wel- 
coming cup of tea on arrival a tour of 


guests are entreated “not to treat 
your hosts as porters or housemaids," 
- even though some of the owners 
interviewed said their housemaids or 
au pairs would be doing the bulk of 
the domestic duties. 

The hospitality was evident to vary- 
ing degrees at the three houses visited 
by a colleague and me. At Burgoyne’s 
house, tea and cake were served by 
our host in the drawing room, the au 
pair who would normally help was 
out walking the dog. 

A tour of the house and grounds 
followed, Burgoyne giving us an ani- 
mated potted history of the house, her 
life - she is particularly proud of her 
prize -winning Chinese Croad Lang- 
shaw chickens - and the Glynde- 
boume opera. 

The guest rooms were spacious and, 
like the house itself, decorated and 
famished in the grandest Georgian 
style. Dinner could be taken either In 
fire large kitchen, or in the smaller 
but stately dining room, and either 
with Burgoyne and her an pair or 
alone. So far her two sets of guests - 
one Belgian, one Canadian - have 
opted to eat with their host 

*Tro really enjoyed the e nt ert a in- 
ing,” said Burgoyne. “In feet, I got on 
with one set of guests so well that I 
took them to a poultry show. They 
thoroughly enjoyed it" 

Further east in Sussex, King John's 
Lodge, so named because King John 
of France was held prisoner there in 
1356. is surrounded in prize-winning 
gardens. The welcome here was also 


warm. If a little guarded. Richard 

f hmwing hawi and his wtfa had decided 

to make a separate lounge area for 
guests, deciding that “both parties 
like a bit of privacy." They had not 
received any guests as yet, but by all 
accounts, breakfast and dinner would 
also be taken alone. “We’ll be too 
busy preparing it,” said Cunningham. 
His management consultancy busi- 
ness has taken over part of file house, 
so space to wander around in was also 


esque vale on the South Downs, we 
were greeted rather formally by the 
lady of the house who showed us to 
an elegant first floor bedroom over- 
looking the large lawned back garden. 

Donwstairs, we were served an 
early evening aperitif, although our 
host was surprisingly shy about dis- 
cussing the house, referring all ques- 
tions to her husband, who was work- 
ing at his heating engineering 
business. When he arrived, he quickly 
disappeared to feed their prize labra- 
dors. I took the opportunity to inspect 
the gardens. After our previous recep- 
tions, it was all slightly uncomfort- 
able. 

We bad. already decided to eat oat, 
and the husband recommended and 
drove us to a local pub, offering to 
pack ns up later. On our return, he 
served us his best single malt and for 
the first time both hosts seemed 
relaxed. We chatted until the small 
hours, during which time and in keep- 
ing with many of the other home own- 
ers, they claimed they were doing 
B&B more for the company than the 
money.. 

The next morning, formality 
returned and we took our breakfast 
alone, served by our reticent hostess. 
Just prior to our dep a rt ure and true 
to form, she said: “I would not like to 
see our names in the paper. I don’t 
think we want any publicity about 
tins." 


the house and gardens and the use of 
many of the facilities. Far their part, restricted. 

At East Ma scaTls, a 15th century 
manor house nestling in a pictur- 


As They Say in Europe 

A dull day in 
Germany is 
. . . well . . . dull 


James Morgan on the way other 
countries tackle boring news 


W hen the week’s 
news consists 

entirely of tales 

of the expected 
and the straightforwardly - 
boring, newspapers tackle the 
problem in a manner dictated 
by their national traditions. 

Hie British create salacious 
gossip to replace LL hi 
Switzerland, you splash the 
story over several columns, 
file duller the better. Thus, 
the Neue ZOrcher Zedong 
covered its front page on 
Tuesday with the death of the 
former East German boss, 
Erich Honecker. 

If the Germans report a dun 
event, they make sure you 
know it is dufi. The Russians 
go in for a tiny bit of grotesque 
exaggeration. The French wrap 
boring stories together and 
manufacture bogus 

cn fntridfln res and pa fantehing 
naneeqidturs. 

For them, the key words are: 
“At the very moment 
when. . So, one provincial 
French paper wrote: “Erich 
Honecker passed away in exile 
in Chile at the very moment 
when the old communists were 
poised to achieve a big victory 
in the Hungarian elections.” 

The arrest of the boss of 
France’s Schneider engineering 
company by file Belgian 
authorities occasioned even 
more complex intellectual 
convolutions in Le Monde. “At 
the very moment when, in the 
margin of the Franco-German 
summit in Mulhouse, the 
employers' organisations of 
Fiance and Germany sign a 
common declaration in favour 
of European construction, the 
indi gnant reaction of many 
French businessmen to the, 
perhaps hasty, arrest in 
Belgium of Didier 
Pineau-Valendenne seems 
surprising." 

This is a journalistic style 
which has gone out of favour 
in Britain, and remains only 
In a shrunken form familiar 
to readers of Sunday colour 
supplements: “Many, on 
meting Charlie Smith, 
Norfolk’s leading rose-grower, 
would be surprised to learn 

that he is a staunch Labour 

Party supporter.” 

For Le Monde, the wondrous 
discovery of its fa nt asti c 
coincidence was merely a 
cause of wider reflections on 
PEuropedes affaires. It decided 
that the close relations 
between France and Belgium 
had led to certain ton gfo ns, 
particularly in the 
Frencbupraklng south of 
Belgium where French 
business influence has been 
regarded as a form of 

faiparinKgw? 

So, the paper warned against 
felling into a trap that l for 

one, had never even 
contemplated. It said French 
leaders should not treat 
Belgium as “some kind 0 f 
banana republic where the 
ri ghts n f mail aB> ra ft 
respected.” A survey I have 


conducted shows that this view 
is not remarkably widespread 
- largely, perhaps, because 
Bel gium is a kingdom. 

Nevertheless, the arrest of 

Ptneau-Valendenne does lead 
to consideration of another 
astounding coincidence. 
Schneider also is the name 
of fire boss of the eponymous 
German company who, in 
March, allegedly ran off with 
millions of his creditors' 
Deutschmarks. 

Since companies called 
Schneider have now got into 
the news this year in both 
France and Germany, why 
have there been, no editorials 
on this? As S chn e i der means 
“tailor", perhaps one should 
watch out to finwa of that 
name - which would be Sastre 
in Spain or Portnoy in Russia. 

This reflection leads 
naturally to the Russian 
approach onflow news and 
indignation ca n be 
man u fac t ured from in adequate 
material 

Now the Russians have a 
unique ability to confront the 
sensational and be defeated 
by the commonplace. That 
quality has been of immense 
use to chaps like Chekhov, 
who could produce fascinating 
tales of characters unmoved 
by disaster and overwhelmed 
by trivia. Thus, Sovetskaya 
Rossiya has been much 
exercised by President 
Yeltsin's decree abolishing 
export quotas and export 
licensing. This, said the paper, 
“plunges the country into a 
new phase of a so-called 
democratic revolution." 

Meanwhile, the other 
conservative daily, Praada, 

celebrated the 95th birthday 
of writer Leonid Leonov by 
noting that it coincided with 
the publication of his new 
novel which, allegedly, “sums 
up the philosophical and 
ethical results of a whole stage 
of world civilisation.” And 
never before had someone of 
96 been able to achieve that. 

If there Is a particular 
German gift in this area of 
stylistic endeavour, it is to 

render the banal banaL This 
week, there have been 
allegations of a scandal 

involving over-charging for 

cardiac valve instants ia 
certain clinics. 

TteAUgemezneZeittngat 

Mama commented: “If this 

should prove to be so, it would 
not be only a case for the 
public prosecutor. It could also 
effoct the smooth functioning 
of social insurance societies 
such as Sickness Funds." And 
soon. 

The trouble Is that real news 
is scarce but comment is 

abundant “No news, no 

succesfol newspaper 
commercial 

■ James Morgan is economics 
correspondent qf the BBC World 



tt 



FINANCIAL TIMES WEEKEND JUNE' 4/JUNE 


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WEEKEND FT XJU 


SPORT 



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an-American motor 
racing fans. Indoc- 
trinated by the self- 
_ proclamation of 
Formula One that it ts the pin. 
. nade of motor raclng.can only 
: ‘ ■ pause and take thought after 
> ^ visiting the “Indianapolis 500". 
Americans insist it is the 
•'•• world’s greatest motor race. 
/ : And they may have a point 

■ The IndianapoUsboard does 
not need to woo Formula 1 for 

v the right to stage a grand prix. 
Formula 1 is wooing it 
This week, as the grand mix 
-.'world continued fierce argn- 
.'*■ - meats over how to improve 
'safety following the fatal 

■ ■ crashes of Ayrton S enna and 
,'v. Roland Ratzenbergar, many 

Tody", fens were sHn trekking 
thousands of mf few acr oss the 
US an their long way home 
"•'••• from last Sunday’s 78th run- 
• - ning of the 500-mfle race at the 
. . .Indianapolis Motor Speedway. 

A subdued crowd of perhaps 
" - r 30,000. watched Damon Win 
> inherit his first-grand prix win 
• trf the season at Barcelona on 
•V Sunday, but, in the US, some 
' 450,000 flocked to see A1 Unser 
r ■ Jr win in his Marlboro Fmske 

• -'Mercedes after 500 miles at an 
r. ^-average of nearly 200 mph. 

.../ Of that total, just under 
4 . 300,000 were in grandstand 

.- ".seats which cost as tittle as $25 

_ enough to admit an arm and 
* ' maybe a leg for basic, stand- 
... ing-only admission to next 
■ .. 'month’s British grand prix at 
‘ SQvmtone. 

Nearly 100 faces filled just 
one vertical row of grand- 
, . stands which Unn most of the 
' ^ speedway’s VA mUga. This is a 
“live” spectator event without 
parallel; the next largest, the 
Le Mans 24-hour race, on a 
Orv good year attracts 200,000. 
pl It awes first-time spectators 
, and overawes new drivers - 
even of the calibre of Nigel 
1 1 Mansell, a rookie last year, and 
ijother top- European drivers 
hired to north America’s Indy 
Car series. All concede that it 

* .offers a challenge to driving 
1 1 skill and bravery with few par- 
Aijallels - even an the most test- 
ing grand'prix of circuits such 
.as Spa-FranoOTchahips. 

So, how can grand prix be 
considered the world champi- 
, qnship if. it -does not 
the world’s fastest and most 
daunting motor race? 

• < > Superficially, there appears 
t no reason why both grand prix 
-t i. and Indy cars. should not take 
to the track together. The Indy 
: cars, for which the Indianapo- 
. )’.r.lis race is the biggest event 
..- across the US and Canada, 

. ' look similar to grand prix cars. 

. ..They have more power but this 
... is oifeef by greater weight' In a 
.. straight Ihie their perfor m ance 
. V ' would be shnflar tad they la<± 

... the technical sophistication 
~ and cornering power of grand 
, r prix care. But, says Tony Hul- 
, man George, the speedway’s 
chief executive, grand prix cars 
are not designed to withstand 
impact with the concrete walls 
T that line the circuit 

Grand prix’s engineers do 
not all agree; and both Max 
^ Mosley, president of tire Feder- 
ation Internationale de TAuto- 
' mobile, the, world governing 
: body of m ot or sport end Ber- 



Cricket /Simon Hughes 

The word in 
the slips 


Tha tmianapoSs 450^000: tbs crowd 


Motor Racing/ John Griffiths 


The Indianapolis formula 


nte Ecclestone, head of the For- 
mula One Constructors’ Asso- 
ciation,- say grand prix cars 
could be made compatible far 
this one race without unrealis- 
tic en gtnpw rn g effo rt. 

But on the commercial and 
political front too, tody’s pow- 
ers-that-be refose to be intimi- 
dated. ‘There are a lot of peo- 
ple in Europe who presume 
that Bemie not only walks on 
water but that he also owns 
the water," Md one Indy vet- 
eran.vrtto has also had a long 
involvement with grand prix 
racing. "Writ Benue might be 
starting to feel he needs Indi- 
anapolis but the speedway sure 


as hell doesn’t need Bemie.” 

The Indianapolis 500 is mare 
than capable of standing an Us 
own feet Even more grand- 
stands and spectator facilittBs 
are to be added during the 
ranting year, just as they have 
been almost continuously 
under the George family’s 
nearly 50-year stewardship. 
The additions are still unlikely 
to be enough: the 1995 race 
ticket order forms warn new 
applicants to seek only the 
cheapest $25 tickets, the others 
are already allocated. 

Yet haltingly and warily - 
and after a breakdown In nego- 
tiations two years ago - grand 


prix and the Indianapolis 
authorities might soon be once 
again-groping towards a rap- 
prochement 

They are still far apart, and 
George says that his talks with 
Ecclestone have not been 
resumed. But quietly, George 
and his speedway board have 
redesigned and landscaped the 
enormous infield - in which 
the full-sized golf course is 
almost lost 

A grand prix circuit combin- 
ing a long stretch of the oval 
course and some classic grand 
prix comers, is in place All 
that is missing are the grand- 
stands and George makes clear 


that he would be prepared to 
bufld them. 

- George dismisses the idea 
that the two types of car will 
ever run together again around 
the speedway - even though it 
was the lightweight rear-en- 
gtoed grand prix cars of the 
late Jim Clark and Graham 
tffii which endwi the reign of 
Indy's front-engined monsters 
In the 1380s. He nevertheless 
insists that Tin prepared to 
consider making a decent, per 
manent home for a US round 
of the grand prix champion- 
ship here. 

Such an event could, he 
hints, be only two or three 


years away, but would depend 
on a more flexible approach 
from Foca and from 
Ecclestone, who has a 
well-earned reputation as a 
hard financial bargainer. 

“If it happens it’s going to be 
on our terms,” says George. 

There is another pointer to 
change. In August the 
speedway will host a big 
Nascar stock car race. 

It is the first time an event 
other than the 500 will have 
been held there. The breaking 
of such a long-hallowed 
tradition could well be the 
harbinger of the grand prix to 
come. 


C ricket has always 
been a noisy game 
in the Indian 
sub-continent and 
in the macho world of 
Australian competition- But 
now in England too, howls of 
annoyance or encouragement 
are shattering the traditional 
peace of cricket grounds. 

With the noise has come a 
crop erf jargon that you will 
pick up at any pro fe ssional 
match without listening 
particularly carefully. You 
might hear the wicketkeeper 
yelling “get it up ’im” as a 
precocious batsman takes 
guard. Sledging has become 
so familiar *ta>* the word is 

incorporated in larger 
dictionaries. 

Other cricket vernacular 
is less well known. Here is a 
quick glossary, with one or 
two oblique references to 
England's current visitors, 

New Zealand. 

Aerosol bowler - usually 
a wayward paceman, literally 
someone who sprays it 
everywhere. The young New 
Zealand fast bowler Heath 
Davis, playing bis first Test 
at Trent Bridge, is a good 
example. Batsmen actually 
dread these types because 
sprinkled in between the wides 
and long-hops will be the 
unplayable delivery. 

Bunsen (burner) - rhyming 
slang far a turning wicket A 
“raging tamsen” describes the 
sort of pitch occasionally found 
in India. There are few in 
county cricket 
Boot Hm - short leg. The 
youngest member of the team 
usually fields here because 
he is the most expendable, but 
41-year-old Graham Gooch 
stands there for England, 
presumably so that be does 
not have to run after the ball 
much. 

Cafeteria bowting - 
Downright rubbish so called 
because you can help yourself. 
You might see some when New 
Zealand take the field this 
series. 

Drfbbly - New Zealand term 
for a slow medium bowler 
(including former captains 
Jeremy Coney and Bev 
Congden) who are lethal on 
their damp, mossy pitches. 

Grabbers - slip fielders. 
Graeme Hick seems to have 
regained his composure there 
for England after a winter of 
fafiibttity. 

Minefield - a raging bunsen 
that helps fast bowlers as welL 
Usually found in provincial 
areas of New Zealand or on 
councQ-nm county grounds 
in England, more by accident 
than design. 

Nick - touch, allegedly too 
feint for the umpire to hear 
or see, so non-walking batsmen 
usually get away with them. 


particularly Australians, but 
nowadays more and more 
English ones as welL 

On ’Em - Loud reminder 
from the slip cordon that the 
batsman taking guard mads 
nought in the first innings, 
and is therefore in danger of 
making a pair. Even the worst 
taO-enders dread that 

Pongo - rapid scoring. 
Serious pongo indicates a run 
rate of about eight an over 
usually inflicted by one of the 
great players - Brian Lara for 
instance - and a day when 
the bowlers do not want their 
analyses advertised in full on 
one of those new-fangled 
electronic sight screens. 

Pufi a Pup - Derbyshire 
term for doing a muscle, and 
nothing to do with thieves at 
Battersea Dogs Hama 

Rabbit - A batsman with 
a career average of less than 
five, or someone who has 
taken more wickets over his 
career than he has scored runs. 
(I don’t qualify?) 

Reverend - player who only 
plays regularly on Sundays. 
Essex, Somerset and Durham 
seem to have had a monopoly. 
Usually indicates a cricketer 
coming to the end of his 
career. Not many are religious. 

Sawn-off - given out by a 
cross-eyed or crooked umpire 
sometimes this is just a pure 
gripe by a player who was 
legitimately dismissed and 
some come out with 
extraordinary excuses such 
as bring distracted by 
spectators flashing mirrors 
or bowlers wearing coloured 
sweat bands. 

Strangle - a wicket taken 
with an unlikely delivery, also 
sometimes described as a 
“death”. The new En gland cap 
Craig White strangles a lot 
of batsmen with deliveries of 
varying quality. 

Up The Ladder - general 
term for a coward or a 
hypochondriac. Basically 
anyone who manages to get 
off the field because life is 
getting a bit rough. 

Waqared - term coined from 
Waqar Younis’s prowess at 
producing inswtogmg yorkers 
which are usually both painful 
and terminal. Yorkshire’s 
Darren Gough is developing 
the same abfflty, but getting 
“Goughed” doesn’t quite have 
the same ring. 

X’s - Money given to county 
or international captains for 
rounds of drink after play . 

The strange thing is you never 
see these captains for dust 
afterwards. 

Zorro - Energetic swishing 
batsman - a flashing blade. 

This summer there may be 
a plague of them representing 
England tucking in to the 
rather friendly New Zealand 
bowling. 


Tennis / John Barrett 

Pierce adds 
fresh verve 

T 


i >- r - 

-- 

a*.:;* 

"ffr., 

: 

efV*. : 
i .G 


his afternoon in 
Paris, international 
women's tennis will 
experience one of its 
periodic moments of rebirth. 
When Mary Pierce; the 19-year- 
old Canadian-born French No. 
1 who lives In Florida, plays 
the e ffe rvescent Arantxa San- 
chez- VJcario, in the final of the 
1994 French Open, she will be 
Injecting fresh life Into a sport 
that has recently been in 
decline- 

Ever retirement of 

Chris Evert in 1989 and the 
eclipse of her great rival Mar- 
tina Navratilova, whose last 
major success was her Wimble- 
don victory in 1990, the game 
has been dominated by Monica 
Seles and Steffi Graf. Between 
them these Iwo have won 23 of 
the lost 28 grand champi- 
onships, fawdnding the last 13. 

Until her comprehensive 
defeat fit the hands of Pierce 
last Thursday, Graf had 
enjoyed a clear im following 
the stabbing of Seles in April 


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1993. The 24-year-old German 
has won her last 20 tourna- 
ment finals. Although Gbraf and 
Seles have been wonderful 
ambassadors for the sport, the 
predictability of their victories 
had introduced an unhealthy 
element of ennui 

Pierce, the No. 12 seed, who 
was competing in a grand slam 
semi-final for the first time, 
ended all that Her crushing 6-2 
6-2 victory over Graf which 
made her the first French- 
woman to reach this final since 
Frankie Durr, who won the 
title in 1967, was exceptional in 
several ways. 

Pierce had played tha world 
No. 1 twice, both times on hard 
courts last year, and had been 
crushed both times. Yet, after 
beating two of the top 10 - : 
Sabatini and Navratilova - at 
the Virginia SHras Champion- 
ships in November, Pierce 
seemed to become a differen t 
person. Now she can 
say:“ . . . every time I play 
against Steffi and the top play- 
ers 1 feel that 1 have the game 
to beat them." She has proved 
that this week. 

Pierce hits the bah harder 
than anyone since Seles. She 
has been trained since late last 
year by Nick Bollettieri, who 
developed both Seles and that 
other mighty smiter, Andre 
Agassi BdDettieri has encour- 
aged her to go for her shots as 

Agassi and Seles do. 

This way of playing is risky. 
On a bad day tha losers out- 
number the winners. On a 
good day you are assured of 
spectacular success. 

For the past two weeks 
Pierce has had a succession of 
good days. Daring her six wins 
she has conceded only IQ 
games, a record in Paris since 
open tennis began in 1968. 



Mohty wtutoc Mary Pfarce powered her way to 8» French Open final 


Mary smiles a lot on court 
She can afford to. now that her 
fufhar and former raaflh Jim 
has been banned from any ven- 
ues where she is playing; fol- 
lowing a fight he had with 
another spectator at last year’s 
French Open. 

“Many thing s have changed, 
«n the court and outride the 
court My life has changed. 1 
enjoy myself more now and I 
have been training a lot physi- 
cally. When you feel good 
physically you have a lot of 
confidence," said Pierce. 

Confidence was crucial 
against Graf. Never did Pierce 
compromise, perhaps because, 
as she explained: “I told myself 
this was just another match 
...1 didn’t think about Steffi 
being the other side of the net, 
I just had to think about the 
ML* Easy to say, difficult to 
do. Clearly Mary was enjoying 
herself, and it showed. 

Too few players understand 
the importance of getting tha 
crowd on their side - espe- 
cially when playing on home 
territory. Jimmy Connors and 
John McEnroe were past mas- 
ters at it Time and again I 
have seen item manipulating 
the vociferous crowd at Flush- 
ing Meadow so that their oppo- 
nents have felt they were tak- 


ing on the whole of New York. 

In Paris, Mary Pierce had the 
16,000 French spectators eating 
out of her hand. A smile here, 
a gesture there and they would 
roar deliriously to compound 
the discomfort of the defending 

The victory was all the more 
impressive for the variety of 
shot displayed by Pierce. Clev- 
erly flighted lobs, well con- 
cealed drop shots and even the 
odd volley, all produced at the 
right moment to catch the 
champion off guard. You kept 
wondering if Mary would 
awaken from her dream. Cer- 
tainly Graf hoped she would. 

Tt is very difficult to play a 
whole match like that You 
sometimes have to wigs some 
points so I still thoug ht I had a 
chance,” said the loss. Any 
last chance Gref might have 
had evaporated when, having 
broken the Fierce serve for the 
first time to make it 2-2 in the 
second set, Graf lost her serve 
with three errors as a light 
drizzle began to fafl- 

When they resumed, after a 
40 minute delay. Pierce sailed 
into the attack. In 13 minutes 
shp hta-ctod through the Tw»rt 

three games for the loss of four 
points to reach the finaL 

Fierce’s opponent today may 


prove more troublesome. San- 
chez- VI cario, the No 2 seed, 
had looked fit and fast as she 
inflicted a 63 6-1 defeat on fel- 
low Spaniard Conchita Marti- 
nez in the other semi-final. 
Sanchez- Vicario. always in the 
shadow of Graf or Seles, now 
has the chance to show us just 
how good she is. 

When she won the French 
title as a bubbling 17-year-old 
in 1989 the future seemed 
bright. Since then, however, 
there have been doubts on the 
great occasions. Too often she 
has faltered on the brink, as at 
the US Open in 1992 when, hav- 
ing beaten Graf, she froze 
against Seles. Pierce is another 
Seles. She plays the same way. 
She has the same confident 
outlook, ft would be ironic if 
the unfortunate Sanchez, the 
only woman previously to have 
beaten Graf this year, should 
be thwarted by Grafs latest 
conqueror. Sanchez has won 
three of her four previous 
meetings against Pierce but 
lost their last encounter on a 
day court in ffilton Head two 
months ago. My guess is that 
Pierce is now even more confi- 
dent than she was then and, 
should today become the sort 
of exciting, new champion the 
game needs. 


Motoring/Stuart Marshall 

Fiat scores a point 


F or months, Fiafs new 
supermini-sized 
Pnnto and I have 
been avoiding one 
another. Nothing personal, 
yon understand. It was just 
that when Fiat asked me to go 
somewhere to drive ft, I was 
committed elsewhere. 

But at last a Panto came my 
way. Having driven ft for a 
week I can say, hand on heart, 
that it was worth the wait. 

The model I tried was a 55 S 
1.1 &doar, at £6,350 the cheap- 
est and least elaborate of them 
alL There can be few cars less 
favoured with goodies. 

It was the first I had driven 
for many years that lacked a 
trip mfleometer. The windows 
were hand wound (no great 
hardship); there was no rev 
counter, no central locking, no 
split rear seat backrest and no 
power steering, which was 
bothersome only at very low 
speeds or when parking. 

That, however, just about 
sums up this most basic Pan- 
to’s downside. The upside 
inclu d ed a willing engine (55 
horsepower at 5,500 rpm); a 
five-speed gearbox with the 
nicest shift of any Fiat in 
recent years, even if getting 
reverse called for a strong 
push down; and a good ride 
due to the wheel-at-each-cor- 
ner design. 

T1» driving position is excel- 
lent because neither pedals 
nor steering wheel is offset 
and - most unusually - there 
is a proper rest for tire left foot 
away from the dutch. Head- 
room is more than adequate, 
with no sunroof runners to 
reduce clearance. There is no 
sunroof. The tailgate opens on 
to a reasonable boot It will 
not take two sets of golf dubs 
in their trolleys without fold- 
ing the back seat - but I can- 
not tfifair of any car in 
size and price class with a boot 
that does. 

Panto’s styling Is trendy and 


practical. I rated it as pretty 
and original as that of the 
“one-box” shaped Twingo that 
Renault, to its discredit and 
probably ultimate regret, has 
said will never be made with 
right-hand drive. 

The body is easy to see out 
of and is well protected, front 
ami rear, from minor knocks 
by whacking great plastic 
bumpers. But the flanks of the 
Panto 55 S look vulnerable to 
careless multistorey parkers; 
they lack the rubber side- 
strips that are standard on 
every other Pnnto model from 
the 55 SX 1.1 8-door (£7,350) 
upwards. 

Height-adjustable seatbelts 
with pre-tensioners are part of 
the package; airbags for driver 
and front passenger are a 
£540.50 optional extra. 

Full marks to Flat for equip- 
ping all Pantos with an inertia 
switch that de-pressurises tire 
fuel line from tank to engine 
in a crash to reduce fire risk. 
Neither power steering nor 
anti-lock brakes are available 
as an extra on this entry 
model though they are on 
some of the dearer ones. 

Another nice touch, unnanal 
in a small, cheap car is the 
choice of fresh or recirculated 
air from the heater. 

Although a car of Panto’s 
size and engine capacity is 
likely to spend more of its life 
In towns and suburbs than on 
long journeys, it does not run 
out of steam on motorways. At 
normal third lane cruising 
speeds it sounded fairly busy 
but unstressed. On smooth tar- 
mac it ran quietly, but 
coarsely textured surfaces cre- 
ated a surprising amount of 
tyre noise. Fuel consumption 
should average around 44-45 
mpg (6.42-6L27 1/100 km). 

For a mix of performance, 
comfort and value for money, 
the Pnnto 55 S must be the 
best buy among supermini- 
sized family hatchbacks. There 


are some slightly cheapei 
ones, but they are mainly 
basic versions of yesterday’! 
cars, such as the Fiat Uno 
Rover Metro, Renault 5 Cam 
pus. Citroen AX and VW Poll 
that are nearing the end o: 
their lives. 

The most compe titiv e of it 
up-to-date price rivals are tin 
Peugeot 106 Hid l.Oi anc 
Vauxhal] Corsa Merit lJ2j 
3-door, listed at £6,375 and 
£6,645 respectively, Nissan 
Mi era LO L 3-door (£6355) and 
Seat Ibiza 1.3 CLi 3-doot 
(£6395). 

Perhaps its most forxnidabU 
challenger will be the new 
Volkswagen Polo, dne to be 
launched in the UK in October. 
Prices will have to match Pan- 
to's closely. Flat has not had a 
happy time in tire British mar- 
ket for several years but in the 
last 12 m onths has been pull- 
ing out of the doldrums. The 
Panto’s arrival can only speed 
up the process. 


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XIV WEEKEND FT 


OUTDOORS 




One at ttia akHu) planting* from Jim Keelins'sbook *ThaTomKotta Gardener 1 (HeadBna, £17.99, 176 pages) 


Gardening 


Potting the way to a 
summer of profusion 


T his weekend, we can 
all play at decorating 
without being real 
gardeners: bedding 
might be outbut potting is in. I 
have seen the signs all over 
England. Dog-tired wholesalers 
are heaving plants by the thou- 
sand from Hereford and Leices- 
ter, retailers are multiplying 
their prices up to five times ' 
and patting flw»m out on hip 


have made off already with too 
much impatiens; and Lizzie 
has been ever so Busy. 

On Wednesday, I found the 
most over-priced pot in Lon- 
don. It was not being passed 
around a bond dealer’s birth- 
day; at £360, it was standing on 
the pavement in Knights- 
bridge, a day container with 
two mini-roses in flower, a 
wisp of sliver leaves, and a 
scattering of white pansies. For 
£20, you could have run up 
your own superior version. 

Potting Is in because we 
have all learned to do it better. 
Gone are the days of a few 
petunias and a zonal geranium: 
potters pack in a jungle (and, if 
they have read the FT, they 
reduce the days of watering by 
adding water-retention crystals 
to the soil). They prolong the 
flowering season by fe eding 
with Fhostrogen once a week. 
And they aim at a profusion 
which leaves the new Royal 
Horticultural Society encyclo- 
paedia looking out of date 
already. 

Undoubtedly, the best pots 
are terracotta, and none is bet- 
ter than the terracotta cast 
thickly in Britain, by Whictt 
ford Potteries near Stratford, 
Warwickshire, which leads the 
exhibitors at each year's Chel- 
sea show. I fear I am not rich 
enough to acquire enough of 
them, though- If each pot costs 
up to £80, how can 1 line my 
terrace and work towards the 
illusion that a warm Riviera 
without tourists stretches 
beyond the tree line? 

Wanting width, I have come 
to rest at Sahisbuzy's Home- 
base. For £13, they win sell you 
a 19in pot oT day, not terra- 
cotta (and would have given 


you 10 per cent off last week 
when you most wanted to buy 
it). 

These pots are plain, dura- 
ble, and are much better than 
anything with little patterns or 
a plastic appearance. 1 use 
than for ray yearly mainstays: 
the standard fuchsias, large 
salvias and felted grey hell-, 
chrysum. Since these plants 
are taken indoors each Octo- 
ber, there is no point in going 
to the extra expense of frost- 
proof terracotta when the 
plants themselves will the with 
a touch of frost 


Most of th**" 1 are a dream for 
part-time nurseries which have 
been started up on open days 
by one or other partner in the 
backyard: they root like weeds 
from cuttings, but we can all 
be nudged into paying £2-50 for 
our own individual piece. 

My j dea l jungle would com- 
bine scented heliotrope; the 
finely-cut silver leaves of a 
senecio under its old name of 
leuchostachr. several angel 
pelargoniums; a plant or 
two of Hie best verbena, the 
pale pink Silver Aim. 

The heliotropes may well 


With retailers rushing to multiply 
their prices , Robin Lane Fox intends 
to be selective about the plants he 
' buys to fill his containers . Sweet 
peas are at the top of his list 


Instead, 1 am prepared to 
spend on plants. Mind you, it is 
not easy to splash out on the 
whafosriers’ routine offerings. 
Far too much is being forced 
on us in mixed odours, which 
include beastly mauve and 
strorjg pink. 

Wherever there is a “ com- 
pact) form, the tall form is 
bring discontinued. Scented, 
tan, white tobacco plants are 
now a collector’s item at gar- 
den centres because of the 
monotonous Do min o mixture 
which can be trusted to behave 
on a municipal roundabout 

From the mass market, I 
have found nothing tolerable 
except white pansies, which 
are over-priced and trailing 
dark blue lobelia Sapphire. 
Vita Sackville-West used to 
insist that lobelia could look 
marvellous when massed in 
semi-shade in a dark-flowered 
form. I agree; but she might 
not agree with my fancy for 
finely-cut pyre thrum Silver 
Feather, or the Minding white 
Cowers of lavatera Mont Blanc 
which are prone to provoke 
shock- 

Sensitive souls, meanwhile, 
head for half-hardy perennials. 


trap the unwary. Ordinary 
stores sell boxes of dark purple 
forms with large flowers, often 
named Marine. These plants 
are annual varieties which 
have almost no scent and die 
totally in the autumn. 

The ones you want are the 
perennials, which cost at least 
£2 each and grow madly from 
what may seem a small frag- 
ment this weekend. Their 
smaller flowers smell exqui- 
sitely of sweet powder. Ghats 
worth is a handsome mid-blue 
and Princess Marina should 
not be muddled with the point- 
less Marine. 

The sweetest of all is White 
Queen and, although these 
flower best in their first year, 
they can be rooted so easily 
from cuttings that one plant 
soon turns into 50. 

Pelargoniums are another 
trap. This weekend, the 
blotched and spotted Regal 
forms look very tempting 
(unless their flowers have too 
much pale mauve). They will 
flower briefly until July and 
will usually hold fire until a 
t hin, second showing in 
autumn. 

By feeding heavily every 


week, 1 did force the old 
blotched form called Royal 
Ascot to flower beyond Its from 
book but, this year, t am com- 
promising with the small-flow- 
ered Angel varieties. They, too, 
have pretty, darts m a rkin gs on 
pale petals, but they last much 
longer and can be tucked eas- 
ily into the heavy planting of 
truvtem plotting. 

For connoisseurs, I recom- 
mend softer varieties: the vio- 
let-blue alyogynes and pale 
forms of the evergreen orange 
mimulus which are just 
appearing in the UK from Cal- 
ifornia. The best way to find 
these varieties Is to take a day 
trip to a specialist: Hopteys of 
Much Wadham, Hertfordshire, 
and Brian HUey of Wellington, 
Surrey, are two Chelsea medal- 
lists near to London's north 
and south ring roads. 

Remember that you will be 
able to multiply your first 
plants from their stock and 
keep them going in ever 
greater quantities by yearly 
cuttings. They are a far better 
buy than yet more strips of 
annuals which will be deed by 
November. - 

Lastly, what about some 
sweet peas? Here, too, we have 
bran fobbed off too often with 
low-growing varieties and 
names like Snoopee. But at the 
Malvern show a month ago, 
one top grower was showing 
19in pots with four plants each 
of his noted tall varieties, 
grown up 5ft bamboo canes 
and flowering magnificently. 

Start yours up canes of 
around the same height, feed 
them regularly with a strong 
tomato fertiliser and. when 
they reach the top, take them 
down to the bottom of the 
cane, wind them round and let 
them climb all over again. 
They will flower excellently 
and may even be better with- 
out the hottest sun or the 
reflection from a supporting 
waR 

If you like potting and hate 
long Latin names or journeys 
down the motorway, opt for 
sweet peas in the knowledge 
that there is nothing better 



o- 


T he story of the British cli- 
mate is written in the 
nation’s flower beds, 
according to Fred Last, 
honorary professor of forestry and 
natural resources at Edinburgh 
University. He believes the UK’s 
parks and back gardens could be 
used as early indicators of such cli- 
mate changes as global warming: 

Botany and meteorology have 
come together in Last’s own garden 
in East Lothian. It was pressed into 
service as a weather station in 1977 
when he decided to explore the 
impact of the previous year’s 
drought on plants and realised 
there was no bench mark for his 
observations. 

Records of the flowering dates of 
plants all over Britain had been 
kept between 1891 and 1945, but no 
one had analysed the data to see if 
it had s story to tell about climate. 
So Last derided to use his garden to 
build a definitive picture of how 
plants respond to their environ- 
ment over time. 

Since 1977, he has recorded the 


Here is the weather flowercast . . . 

Susan Aldridge explains how ordinary garden blooms may be an indicator of climatic changes 


flowering date of every spedes in 
the garden. At present, there are 
450, of which 250 have been there 
since the start 

The records show that some spe- 
des - such as honesty, lilac and 
apple - bloom on the same day 
every year. Indeed, the archives at 
Covent Garden (the London fruit 
and vegetable market) show that 
home-grown apples have been 
reaching the market on virtually 
the same date for more than a cen- 
tury. Bat the flowering dates of 
many other spedes - such as grape 
hyacinths, rhododendrons and 
roses - appear to be dictated by 
temperatures in the months before 
blooming. 

Using average flowering dates for 
the period from 1978 to 1988, Last 


has been able to show that warm 
years such as 1988 and 1989 were 
registered by changes in flowering 
dates. “Maximum and minimum 
temperatures were both four 
degrees higher than average in Jan- 
nary and February 1989, and this 
resulted in a total change in flower- 
ing patterns in -the garden,” he 
says. “By March, there were three 
times more plants in bloom than 
normal, and the flowering of sensi- 
tive species such as poached egg 
plant and rhododendron were 
advanced by several weeks.” 

These spedes flowered early in 
1990, too. But the trend was not 
sustained and 1991 saw the return 
of average flowering patterns. This 
season has seen few highlights so 
far - at least in East Lothian. 


While November and December 
were unusually cool, temperatures 
were normal thereafter and the 
□umber of flowers in bloom from 
January to March reflected this, 
bring dose to the long-term aver- 
age. People thought it was a cold 
winter, but the message from the 
flower beds is that while it was 
long, it was not exceptionally hard. 

Put simply, most sensitive spe- 
cies respond to air and soil temper- 
atures a month or so before flower- 
ing. Some also are 
moisture-sensitive, while roses 
seem to respond to cumulative 
effects - two warm years such as 
1988 and 1989 saw them flowering 
even earlier In 1990. 

Plants which are not climate-sen- 
sitive are said to be photoperiodte - 


their flowering triggered only by 
the length of the day. The underly- 
ing reasons for these differing 
responses remain unknown but 
Last hopes his garden-based studies 
might trigger more research tnto 
the basic biology of flowering. 

These trends have obvious impli- 
cations for garden design. A 
year-round show could be guaran- 
teed by mixing plants which unfold 
their flowers In an orderly progres- 
sion as the days lengthen, with 
those which are dhnate-responsive; 
tills would add interest and vari- 
ability. 

Bulbs, for Instance, could include 
temperature-responsive snowflakes 
and fritfflaries alongside the yellow 
and white tulipa tarda, which Is 
photo-periodic. For the rock gar- 


den, saxifrage will bloom early or 
late against a constant background 
of yellow alyssum, Photo-periodic 
shrubs indude the pink and white- 
flowered escaHonla, while the bud- 
dlcia (known as the orange ball 
tree) is a climate responder. 

As for as climate goes, it is still 
too soon to say if the trends of the 
past few years amount to .global 
warming. “People thought that the 
warmth or 1988 and 1989 was 
bound to have a residual effect,” 
says Last 

“The fact that we were back to 
normal by 1991 suggests that those 
years may have been part of a 
short-term trend. But with many 
more years of monitoring, we wfU 
certainly pick up the longer term 
pHtnnfa trends.” 


Last would like to see cttm&te 
change gardens used tn a serious 
scientific context - in schools, or 
attached to meteorological stations. 
At present, he is designing a cli- 
mate change garden for the Centre 
for Deep Sea Oceanography, in 
Southampton. 

The scientists there are looking 
at how the oceans act as a “sink" 
for carbon dioxide released into the 
atmosphere by anthropogenic mis- 
sions such as power stations and 
car exhaust fumes. “It’s particu- 
larly appropriate to have a climate 
change garden at a site where 
they’re studying the effect of cH- 
mate on the ocean," Last says. 

Violet willow, witch hazel and 
lily of the valley are among the 
photo-periodic responders which 
will provide constant and predict- 
able year-round colour for the sci- 
entists. Mexican orange blossom, 
blue-eyed Mary, and Solomon's seal 
will work alongside them as early 
indicators of climate change - as 
could many of the plants in gar- 
dens up and down the country. 


Facts and Figures 

May statistics 

MB«t skied: 22S (Total since January 1: 1.653) 

Vortical mite* 48 (Tot* 333) 

MB** by car/twSn: StAOO (Tetofc 1MBBJ 
IViiorti so lan 183 

(US: 50; Canada: Uk Austria: 2ft !My: tCk Gotrnmy: f; Rsnq a r 24; 
Swftzeriand: 21; India; 10; Japan: 4> 


Resorts skied In May . 

Franco: VaJ Dlsara. Hgnea. Chamonbc Argontioro . 

Austria: Stub® Glacier. Sofderi 
tndta RofUang Poss (Maninfl) . 

Japan: Goryu Tooml, Gasnan, Tokyo Ski Dbrn^Tsudamma 
USs Mammoth, GaMomta 


Expedition sp o ns ors 

SU ms tommft. Colander. Miti-ndaKl;’ 'We Murion kriW* Air MM 
Zwknct, Snow + Rock; Fogg IrwmnoK Lubtv CtatfpapM Mrrekr. Ctartns. 


Monthly competition winner 

Kinn Ormsxy Bury , Urea April 




Skiing 


The desperate jet set 


Arrde Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a Txnmdrthe-vxaid expe- 
dition. They began in the US, 
and last month tided in France, 
Austria , India, Japan and the 
and north America. Now tn 
Austria, they will soon be on the 
way to South America... 


T 


he enormous globe of 
the moon hung over 
the top of Lift 23 at 
Mamm oth Mo untain 
in California’s High Sierras. 
Simultaneously, the rays of the 


GARDENING 


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rising sun suddenly cleared the 
top of Broadway. It was 5L27am 
and the start of a tense day for 
the FTs Round-The-World Ski 
Expedition. 

Before the rush hour started, 
Lacy and I would be the only 
passengers cruising over the 
snow-capped peaks in an exec- 
utive jet heading for an. 
already hazy Los Angeles and 
from there to Europe and the 
Alps. Two logistical conun- 
drums had jeopardised oar 
plans to travel from California 
to an Austrian glacier in our 
attempt to ski every day of 
im 

We had relied on the normal 
morning flight to travel the 300 
miles from Mammoth. - one of 
less than a handful of north 
American ski resorts where 
lifts were still opmating at this 
time of year - to Los Angeles. 
What we had foil ed to bargain 
for was that during late May 
this flight was out of service. 
We seemed to be marooned in 
the middle of the Sierra wilder- 
ness. 

The nature of our second cri- 
sis only dawned on the day 
before we were to leave for 
Europe to mark time in the 
glaciers until the first snows in 
the Andes: even if we managed 
to find a way of leaving Mam- 
moth, our overnight flight to 
Frankfurt, which arrived 
around noon, was going to 
leave us too far from our 



Early ro omi ng run: Ma m mo th mountain In Cafifontia 


intended destination at Htnter- 
tux in Austria to be able to ski 
that day. 

Our first problem was solved 
in spectacular style when 
Randy McCoy, son of Mam- 
moth’s owner. Dave McCoy, 
agreed to fly ns to Los Angeles 
in the resort's new (3m Cita- 
tion jet He found room not 
only for all our skis, but also 
our bag of dirty laundry. 

After McCoy had come to the 
rescue in his glistening new jet 
to fly US Old: Of Mammoth, 
American Airlines, who have 
already flown us once round 
the world, agreed to fly us first 
class to Munich, where we 
would arrive two hours earHer 
than Frankfort and be nearer 
the mountains. 


The odds against our skiing 
in California and Austria on 
consecutive days had suddenly 
shortened. And thus it was 
that we found ourselves being 
ferried by Steve Brown’s Snow- 
cat to the top of Lift 1 at dawn, 
long before Mammoth's lifts 
opened, tn ski Broadway just 
the once. It was a rude but 
spectacular awakening to the 
day. We then jetted to LA to 
try to stay on course for our 
148 th day's skiing. 

We had spent a jet-lagged 
but Idyllic week at Mammoth, 
combining some much needed 
rest with some equally impor- 
tant ski mileage. Even with 
only four of its normal winter 
quota of SO lifts open. Mam- 
moth still has a formidable 


amount of aiding available in 
spring. 

Trying to find large - prefer- 
ably interconnected - snow 
patches to aki on when it is not 
winter anywhere in the world 
is not easy, as our poor ski 
record this month confirms. 
We had become expert at find- 
ing such snow in India, and - 
as one local put it “Here in 
Mammoth we have some pretty 
big snow patches!” 

With more than a dozen 
trails open, Mammoth was 
bliss after our hunt for snow in 
Asia. And. even though most 
lifts were closed, you could 
still hike Into tougher runs 
such as Wipe Out and Dave's 
Ron. 

In May, the resort’s lifts 
dose at 2pm. Skiers can spend 
the afternoon marvelling at 
local attractions such as the 
monoliths and waterfalls of 
Yosemite, and perhaps Amer- 
ica’s best-preserved and most 
poignant ghost town, Bodie, “a 
mining town frozen in time”. 
We were even able to play ntna 
boles of golf 

Around 24 hours after leav- 
ing Mammoth, Lucy and 1 were 
revelling in fresh powder on 
the Stuhai, an Austrian glacier 
at NeusttfL It seems an age 
since were last in Europe, but 
it is a mere 23 days and 2&820 
m iles. After our hectic and ear- 
less schedule In India and 
Japan, It is a relief to be mobile 

a gain. 

Trying to ski either gjde of 
an inter-oontineatal flight is 
always tricky. What should 
have been a straightforward 
ran from the top of Argen- 
tine's Grands Montets before 
we left for Geneva and our 


flight to Delhi at the beginning 
of May became tense when 
high winds sprung up sud- 
denly, almost trapping us help- 
lessly oh top Of the nwwntarin 
only hours before our aircraft’s 
departure. 

We had been warned that it 
was raining at the top of the 
cable-car but, unexpectedly, we 
encountered savage conditions. 
By the time we reached the 
summit, 60 mile-an-honr winds 
Plus thick fog had made file 
long black run bade to the mid- 
station at La Croix da Lognan 
- more than 4,000 ft of 
extremely exposed nnA mogul- 
led terrain - a frightening pros- 
pect to ski in a hurry or even 
to ski at alL Feeling just a little 
like Captain Oates, I clambered 
down the metal staircase to the 
slopes way below, but I knew 
in my heart that the 
on skis was too dangerous. 

There was now a real risk 
that the cable car would stop 
running and leave us stranded 
»rotil the wind dropped. But 
the gusts were just within 
operational limits. We chose a 
more benign run for our one 
descent before leaving, but it 
was a dose thing. 

Now we are back in Europe, 
the next few days in Austria 
and Switzerland are going to 
he very precious. They will 
represent the only real taste of 
summer we will have in 1994. 
In mid-June we shall be 
plunged back into winter when 
we arrive in Santiago in an 
attempt to ski every single 

resort in Chile and Argentina. 
But here in Austria, it Is snow- 
ing again. Perhaps there will 
bo some winter sunshine in 
south America. 





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O M of the enduring 
English traits is the 
capacity to produce 
eccentrics. Here are 
tbree on parade: Paul Johnson, and 
John Osborne with their oddly sym- 
metric titles - Wake Up Britain! 
and Damn You, England (the latter 
avoiding the exclamation mark) -.’ 
atamgsitiiB an authorised life of Lord 
Longford, possibly the most eccen- 
tric of the lot 

All of them have charged as time 
went by: Johnson from left to right, 
Cteborue from a fairly proli fic play- 
wright to someone who may not 
write for the theatre again, Long- 
ford from right h> left (with a con- 
version to Soman Catholicism in 
the m i ddle ) and almost back a gam 
fa his late years, we leant, Longford 
gets on waG with another English 
eccentric, Denis Thatcher. The pair 
share a love of rugby and the expe- 
rience of being the butt of cartoon- 
ists. 

Yet one wonders if the rhangpq 


Three eccentric English lives 


have been in anything much more 
than the labels. Johnson, once the 
editor of the New Statesman, 
remains.a polemicist. The new ele- 
ment is nostalgia for an old Britain. 
When he was at school, he recalls, 
the whole dormitory would be 
woken up In the middle of the night 
“to be given the glorious news that 
yet -another old boy had won the 
VC”. And when he was at home in 
Staffordshire, “an entire street 
would celebrate when a boy or ghi 
from it got into a grammar school”. 

Something went wrong after the 
second world war starting, he 
thinks, with the end of empire with- 
out the consent of the British peo- 
ple. Ever after, save a brief inter- 
lude from Lady Thatcher, it has 
been down hUL Johnson claims that 
Europe might have saved Britain if 


WAKE UP BRITAIN! 

DAMN YOU, ENGLAND 

LORD LONGFORD 

by Paid Johnson 

by John Osborne 

by Peter Stanford 

Weidenfeld and Nicolsan £9.99, 

Faber and Faber, £14.99, 

Hemmarm, £20, 

200 pages 

264 pages 

502 pages 


it had joined at the start He sees 
Jean Monnet as a hero and the 
“onlie begetter” of the European 
Union, with Churchill alone ready 
to support him on the British side. 

Note that the evidence for Chur- 
chill's staunch commitment to 
Britain in Europe is not produced 
and would be hard to find. Note also 
that there was nothing to prevent 
anyone reading the Treaty of Borne 
when it was first written and realis- 
ing its implications. Still, the book 
is sub-titled a pamphlet, so perhaps 
details do not matter. Johnson 
wants the emergence of a party 


“broadly conservative in its atti- 
tudes” campaigning for “the reten- 
tion of essential elements of British 
sovereignty”, in spite of the excla- 
mation mark, the fire has gone out 

Osborne has perhaps best misun- 
derstood, partly by his own doing. 
The words “Damn you, England" 
originally came from one short 
article written as the Berlin Wall 
was going up in 196L There are 
other harsh words in it, such as: “I 
carry a knife in my heart for every 
one of you. Macmillan, and yon, 
Gaitskell you particularly”. 

Yet if you read, bis prose as a 


whole there is not all. that much 
spleen even in the political pieces. 
In 1974 he wrote in Tfte Observer. “I 
shall vote Labour once more, but 
with even emptier heart that 
usual". He added; “If I lived in 
Ebbw Vale I should vote for Michael 
Foot; and if I lived in County Down 
I should vote for Enoch Powell". In 
other words, another English 
romantic eccentric hankering after 
his own kind. 

For the rest. Dawn You. England 
in mainly a collection of Osborne’s 
sensitive and highly intelligent 
views on theatre. He may not like 


critics and sometimes even audi- 
ences, but they were not always 
right about him. Nor is he espe- 
cially little English: see his notes on 
Strindberg and Ibsen. The public 
image has sometimes obscured the 
quality of his work. 

Much the same may be said of 
Lord Longford, notably by way of 
Ms attachment to the convicted 
moors murderer, Myra Htadley. The 
reservation about this authorised 
biography is that Longford should 
think himself important enough to 
trust his life to a 500 page book by a 
former editor of the Catholic Herald. 
Peter Stanford. Longford cannot be 
as modest as he looks. 

Over time he has had much to be 
modest about As Stanford points 
out, his ambition was to rise much 
higher in politics than he did. It is 


bard now to recall that he rose as 
far as minis ter for civil aviation. He 
would have liked, but was never 
offered, the Home Office. 

Perhaps he wanted to be more 
conventional than he seemed. Cer- 
tainly. with the possible exception 
of the Hindl ev case, there Is nothing 
particularly eccentric in what he 
has said. It is not all that odd for 
someone with a decent education to 
abandon the Conservative Party. 
Longford did not turn far left: only 
to the Labour Party. 

Yet the image of eccentricity 
remains. As one of his daughters 
co mme nts: “It's as if he is Saying, 
TU be a maverick. I'll be a rebel, I’ll 
never tie my shoelaces, but two peo- 
ple I’m always going to support are 
the Pope and the President of the 
United States'”. Stanford’s claim 
that he is an elder statesman of the 
Labour Party goes a bit far. but it's 
not a bad life. 


Malcolm Rutherford 



Publishers have mobilised Ian 
Davidson picks the best works 


I 


t was with foreboding 
that I tackled this 
clutch of books about 
D-Day and the Nor- 
mandy landing. There 
was little reason to suppose 
that the famitiar story would 
be improved by -the hoop-la of 
the 50th anniversary . 

And yet, the D-Day landings 
were an amaring event It was 
the biggest sea-borne invasion 
in history, the product of an 
extraordinary combination of 
intelligence, deception, 
secrecy, inventiveness, plan- 
ning, engineering, logistics, 

iHa-ipting and hravtwy 

.None of this would have 
beenubieto overcome the fear- 
ful odds, If the operation had 
not been over-arched by an 
astonishing; depth and taten- . 
sity of international coopera- 
tion mid military integration 
between the allies, which .laid 
the foundations' for Europe's 
security throughout the next 
50 years. 1 

If you want to know the 
essential story, I cannot imag- 
ine a better place to begin than 
the Penguin Atlas of D-Day 
(Viking/ Penguin, 143 pages, , 
£17 in hardback, £10 to paper- 
back). This is a superbly pro- ; 
dneed little book, with excel- 
lent maps In colour, which 
flluramate every aspect of the 
Operation fram.the planning to 
the armada; from the landings 
to the' bridgehead, right 
through to the end of the Nor- 
mandy campaign 10 weeks 
later. If you are a military his- 
tory buff, and want to trace the 
movements of ah Individual 
division, the index gives a ref- 
erenre to relevant maps and 
text 

The text is the real bonus. I 
had expected the; words to be 
no more than a make- shift 
skeleton c< facts, filling in the 
spaces 'between the maps, to 
fact, it is a abating narrative, 
told with verve and drama by 


John Man; and he sMTftiHy 

intersperses the detailed 
account of events on the battle- 
field with glimpses of the 
larger picture gnd stimulating 
-judgments which avoid any 
taint of patriotic prejudice. 

David Evans' Guide to the 
Beaches and Battlefields of Nor- 
mandy (Michael Joseph, £1439, 
198 pages) is a more pedestrian 
affair. It is obviously intended 
as a utilitarian handbook for 
■ militar y tourists or relatives of 
men who fought in Normandy. 
There is a short historical sec- 
tion, but the book fa mainly 
devoted to an alphabetical gaz- 
etteer of villages end towns to 
Normandy, with brief thumb- 
nail sketches of their associa- 
tions with the campaign, and 
their war memorials and muse- 
ums. Unfortunately, the maps 
and diagrams, in black and 
white, are rather crude. 

If .it is true that a picture is 
worth, a thousand words, then 
a book of photographs of the 
invasion ought to give the vivi- 
dest possible impression of a 
great and dramatic event. The 
curious thing about D-Day. the 
, Invasion rn Photographs 
(edited by Tony HaH, Salaman- 
der, £439, 64 pages, paperback) 
is that the overall impression 
is rather confused and unfa- 
cussed- Perhaps this is because 
this book does not include the 
best selection of the available 
photographs. Or perhaps it is 
unavoidable that the dominant 
impression through the lens is 
the fog of battle: It is only 
afterwards that the researcher 
<sm reconstruct the drama and 
Its meaning - which must be 
conveyed to words. 

Russell Miller’s Nothing Less 
Than Victory (Penguin, £7.99, 
496 pages, paperback), is in its 
way a verbal equivalent of the 
book of photographs, because 
this is an oral history of the 
Invasion, told afterwards by 
men (from both sides) who 



Surrender, young n raro bero of tha W ahrroacht- from P-Oay. Tha CSraacttc Battle of Worid War B by Stephen E Ambrose IStmon & Schuster £20} 


were there. Some of the 
extracts are drawn from books 
or other published sources. But 
most of them are from inter- 
views conducted by the author, 
and cumulatively they give a 
powerful impression of what it 
was like to be alive in 1944. to 
be young, and to be at war. 

D-Day 1944 (by Robin NeO- 
larids and Roderick de Nor- 
mann, Orion, £5.99, 320 pages, 
paperback) is another attempt 
to tell the story of the invasion 
in the words of men who were 
there. But where Russell BfiHer 
leaves the extracts to speak for 
themselves, Neillauds and de 
Normazm have woven their 
first-hand sources into a seam- 
less story. This is warfare at 
ground level, and a vivid and 
frightening experience for all 
these terribly young men. 

Someone took a lot of trouble 
to liven up the page layouts to 
D-Day: the Normandy Landings 
and the Liberation of Europe 


(Anthony Kemp, Thames and 
Hudson, £6.95, 194 pages, 
paperback). Unfortunately, the 
effect is so busy, with different 
type-sizes and different types 
of illustration inter-twining 
with the text on every page, 
that the result is difficult to 
read. Anthony Kemp has pro- 
duced a straightforward narra- 
tive, but the visual confusion 
does not help, even if many of 
the Illustrations are striking, 
The attraction of a first-hand 
account of war, such as Geoff- 
rey Picofs Accidental Warrior 
(Penguin, £6.99, 318 pages 
paperback) or Alastair Borth- 
wick's Battalion (Baton Wicks, 
£16.99, 270 pages) is that it can 
give a powerful impression of 
what it was like to be there; 
the drawback is that personal 
knowledge is almost invariably 
confined to a small perimeter: 
the individual soldier knows 
li ttle of the battle, and almost 

nothing of the camp a ig n 


Geoffrey Picot. a 19-year-old 
infantry officer In Normandy, 
makes this explicit. “Those 
who get their picture of a bat- 
tle from ffhns where s eeming l y 
hundreds of rival soldiers are 
packed Into a few hundred 
square yards may have diffi- 
culty imagining a real battle- 
field. You and a couple of pals 
can be hundreds of yards from 
anybody else; you may not 
have much idea where friend 
or foe are. You fire from a con- 
cealed position to a hidden tar- 
get And how on earth do you 
find out what is going on?" 

Accidental Warrior has been 
praised by soldiers. I found it a 
bit too stifrupper-Iip; as Rus- 
sell Miller found when he was 
Interviewing for his oral his- 
tory, the English were less 
ready to admit to any real feel- 
ings than the Americans. 

Borthwick. however, has a 
turn for engaging humour. 
“Egg-bunting was the only 


sport possible in St Honorine, 
and it was pursued so dili- 
gently by the garrison that 
some claimed eggs were 
snatched before they even 
touched the straw. All the hens 
certainly had a harassed look 
. . . You had to follow the hen 
into the hen-house and sit star- 
ing it out of countenance until 
it had laid, because if you took 
your eyes off it for a second 
someone came in and robbed 
you." Battalion was published 
in 1946, under the title Sans 
Fair ; it deserves its re-issue. 

Decision in Normandy, by 
the American military histo- 
rian Carlo d'Este (Harper Col- 
lins, £1059, 558 pages, paper- 
back) is another welcome 
reissue. First published in 1983. 
it is detailed, comprehensive, 
deeply researched, penetrating, 
and well written; it has became 
and will doubtless long remain 
one of the classic accounts of 
the Normandy c amp ai g n. 


Schoolgirl feminist 


T he cover of this book 
says it alL Hoe, at 60, 
is Gloria Steinem: 
long blonde hair, 
drainpipe' pants, high black 
boots, exquisitely manicured 
fingernails. She is the accept- 
able face of American femi- 
' uism: radical but feminine, 
prosperous - the picture of a 
, healthy, pampered confident 
' young girL 

And that is the problem. For 
between the covers, Steinem 
' writes like an adolescent Mov- 
ing Beyond Words is a coHec- 
tion of essays: some revamped 
versions of the smart journal- 
ism with which she made her 
name, such 'as "Sex, Lies and 
Advertising"; others new. long 
pieces on Freud, on a feminist 
economics, on being 60. It is 
these, published to celebrate 30 
years of feminist wisdom; 
which reveal Steinem’s finite' . 
tions as writer and thinker. 
They are embarrassing, 
tedious, shallow and, in their 
pretence to scholarship, deeply 
fraudulent 

Hie essay "What if Freud 
were Fhyfflsr is the core of 
.the book. At 90 pages it intro- 
duces the' volume and Steinem, 
subtttfing U “The Watergate of 
. the Western World*, compares 
it both to Swift’s A Modest Pro- 
posal ami Nabokov's Pale Fire. 
In fact, it is a trite pastiche of 
Freud's . Ufo, constructed as a 
mock biography of Phyllis, a 
matriarchal psychoanalyst 
who discovered male womb 
envy and female breast castra- 
tion anxiety, 

Steinem tells this deadpan 
hut, every few sentences, she 


tries, like a precocious student 
to catch out teacher Freud. He 
was beastly to his wife, "too 
bad Martha didn't write a 
book”. He had an affair with 
his sister-in-law - or even 
worse, he did not If he’d bad 
a satisfying sex life with any- 
body, he wouldn’t have been so 
bananas." And his theories 
wee a male conspiracy which 
“keeps society and the psyche 
to its proper order". 

Years ago, Steinem got 
laughs out of role reversals. 
Her fantasy of men menstruat- 
ing when women could not, far 
example. - "men would brag 
about how long and bow much 
...street guys would invent 

MOVINGBEYOND 
WORDS 
Glory Steinem 

Bloomsbury, £9.99. 296 popes 

slang (he's a three-pad man)” - 
was funny, warm, provocative. 

By contrast, this pastiche is 
crass. We know Freud was a 
chauvinist who made serious 
errors about female sexuality, 
Steinem merely trfviaHses fem- 
inism's long quarrel with psy- 
choanalysis. And in her school- 
girl cockiness, she ignores the 
key point - that Freud was an 
intellectual revolutionary 
whose effect on modem con- 
sciousness can never be 
reversed, to spite of grave indi- 
vidual flaws in his argument 
Like many feminists, Stei- 
nem's vision of truth is ideo- 
logically determined. She inter- 
prets basic human experiences 
through the prism of a gender 


war. In “Doing 60" she com- 
plains that the (male) state is 
removing older women’s right 
to bear children: “France has 
just passed a law against medi- 
cally assisted procreation for 
post-menopausal women... It 
makes you understand why 
women lie ‘about their age’.’* 

The undertone of the Freud 
piece is that women would 
have better sex if Freud had 
not got us wrong. 

Through them all run the 
cliches - “testosterone-fuelled 
corporations”, “women are pri- 
mordial underdogs" - which 
reflect the strong hold of politi- 
cal correctness on our 
responses to SteLnem’s world 
view. To demur, says Steinem’s 
tone, is to rule yourself out as 
a moral player. 

For so many of the issues 
Steinem discusses - ageing, 
sexual neuroses, having and 
rearing children or not having 
them - are problems which are 
not entirely or even largely 
caused by politics. 

A return to flower power - “I 
hope to live to the year 2030, 
and see what this country will 
be like when one in four 
women is over 65 . . . perhaps 
we will be perennial flowers 
who repot ourselves and bloom 
many times'* - is not the 
answer. 

The psyche was never an 
easy or simple thing. Steinem’s 
utopianism denies the tragedy 
and awe, the chaos and venal- 
ity, that are a rich part of life 
and whose absence leaves her 
book soulless and banal 

Jadde Wullschlager 


T here are two stories 
here. The first is of 
the life, loves and 
friendships of J P 
Donleavy, an Irish American to 
his 20s, who left the US Navy 
at the end of the second worid 
war and used his entitlement 
of a free education imdw the 
GI Bill to enrol as a law stu- 
dent at Trinity College, Dublic- 
The energy released by his 
new freedom went on a variety 
of activities in the Irish capital, 
of which heavy drinking, fights 
in bars and the pursuit of innu- 
merable women were a high - 
and the academic study of law 
a low - priority. 

The second, and the more 
absorbing story is of how his 
first book The Ginger Man 
came to be published by the 
Olympia Press in Paris in 1355 
and of his subsequent bitter 
legal battle to extricate it from 
their “Travellers’ Library" (a 
list of pornography) and get it 
brought out in England by a 
reputable publisher where it 
could be taken seriously. Its 
rampageous fool-mouthed hero 
Sebastian Dangerfield and its 
brutal candour about sex. pio- 
neered a new approach in fic- 
tion. It was both hilarious 
farce and wonderfully evoca- 
tive of location. Donleavy had 
been a painter before becoming 
a writer. 

Story one describes Don* 
leavy’s life as a recently mar- 
ried mao whose wife showed 
saintly forebearance at his vio- 
lent antics and frequent 
absences. His gregarious love 
of mate company derives from 
a childhood in the Bronx, 
where his Irish immigrant 
background set him apart from 
the other children at his 
school His agg re ssive nature 
was apparent even then. One 
of his victim’s mothers inter* 


A writer 
and a 
fighter 

vened during a scrap with 
another boy pinioning him so 
that her son could punch Don- 
leavy with impunity. He was 
rescued by his own mother 
who told the other woman: 
“You are going to have to do 
that for the rest of (your son's] 
Kfe". 

In Donleavy’s adult life res- 
cue from imnihMint danger is a 
recurring theme. It might take 
the form of a timely Loan from 
from a friend; or the fortuitous 

THE HISTORY OF THE 
GINGER MAN 
J P Donleavy 

Viking. £17. 517 pages 

presence of a bruiser-pal who 
would keep angry pursuers at 
bay white Donleavy made his 
escape through a side-exit of 
the pub. More often it is Don- 
leavy, pugilist as well as liter- 
ary artist, who has to perform 
a rescue for one of his cronies. 

He re-creates the drunken 
chivalries and verbal jousting 
of a male set whose fame, 
unlike his, has not survived 
post-war Dublin. Apart of 
course from Brendan Behan, a 
firm friend who recognised 
Donleavy’s powers early on, 
and whose skill as a mimi c, 
persistence as a lecher and out- 
rageous behaviour as a guest, 
are all hilariously noted. But 
the exploits of such as Gal- 


lagher. McKernan, Craig, and 
even one Gainor Stephen Crist 
who was the model for the Gin- 
ger Man are rather less enter- 
taining to read about here than 
were those of the fictional 
counterparts they inspired. 

The novel still reads well 
thanks to its lively prose. Don- 
leavy learned a lot from the 
thought processes of Stephen 
Dedal us and Leopold Bloom. 
But now, approaching 70, the 
ginger in DonJeavy’s writing 
has given way to a blander Sa- 
vour; a maturity that has 
unfortunately been accompan- 
ied by the onset of prolixity. 
Eventually we move from 
Ireland to other places where 
Donleavy has lived - the Isle of 
Man, Boston, London, Paris, 
where, from time to time, the 
former fine descriptive touch 
returns. 

It is to Paris that he goes to 
confront Girodias. publisher of 
Olympia Press. Letters 
exchanged between author and 
publisher, gastronomic lunches 
followed by fraught meetings 
in the office, than the shock of 
the early copies of the book 
with the company’s pom-titles 
emblazoned on the fly-leaf, are 
the opening rounds in a costly 
legal battle that culminated in 
an auction many years later at 
which the Olympia Press came 
wholly into Donleavy 's posses- 
sion. He was now a rich man 
thanks to the success of the 
rescued Ginger Man and of 
later books. 

Page 400 onwards should be 
read by anyone who is about to 
sign an agreement to publish a 
first novel That Donleavy won 
his battle to rescue his book 
says much for his courage: it 
also shows that bis training in 
law was not wasted time. 

Anthony Curtis 


A haunting 
memoir 


J D F Jones on a real talent 


A t the start, it 
appears that Julia 
Blackburn has done 
it again - by which 
I mean that she has repeated 
the feat, and the approach, of 
her remarkable previous book, 
The Emperor’s Last Bland. But 
altar the first chapters of Daisy 
Bates in the Desert, it is evident 
that this is a development, a 
pushing-forward, of a real tal- 
ent 

The Emperor's Last Island 
was “about” St Helena, the 
author's visit, and the last 
days of Napoleon. It was a 
blend of travel, imagination, 
biography, autobiography, 
whisked together by a beauti- 
ful prose stylist to produce - 
hard to convey the flavour - a 
haunting and rhapsodical 
memoir booksellers found it 
hard to decide in which section 


DAISY BATES IN THE 
DESERT 

by Julia Blackburn 

Seeker A Warburg £15.99. 
232 pages 


to display her wares. It has 
now been reissued in paper- 
back (Mandarin. £5.99) to coin- 
cide with Ms Blackburn's new 
book, in which, this time, the 
proportions have changed a lit- 
tle - this is more “biography" 
th a n “travel", more imagina- 
tion than history. 

Daisy Bates was an eccentric 
old lady of Irish extraction who 
spent most of her long life to a 
tent to the South Australian 
sands promoting the cause of 
the wretched native popula- 
tion. She published The Pass- 
ing of the Aborigines (1938 and 
1966), received a CBE. died in 
1951, and is certainly not an 
unknown figure, quite apart 
from the fact that she was 
briefly married to Breaker Mor- 
ant, the fantasist and adven- 
turer who was court-martialled 
and shot in the Anglo-Boer 
War. 

Julia Blackburn in her St 
Helena book developed the 
trick of picking on an autobio- 
graphical memory, describing 
it briefly, and then using it to 
pole-vault into her main sub- 
ject She does it again (and 
again) here - “l first heard of 
Daisy Bates about 25 years ago 
when I was on the edge of my 
adult life: back straight waist 
narrow, jaws always aching 
because I clenched my teeth in 
fear or perhaps in rage. I had 
established a carious relation- 


ship with a woman called 
Edith Young . . . She had learnt 
about Daisy Bates, the only 
interesting person with a white 
skin who had ever lived in the 
entire (Australian) continent 
as far as she was con- 
cerned . . .‘You must write a 
hook about her, 1 she said . . 

Soon the author is creeping 
up on her unlikely target “111 
give her a dream from her 
childhood which is a dream 
that I used to have when I was 
a child . . And then, after 
intense empathy and research, 
the break-out from the St 
Helena mode as Blackburn dis- 
covers she feels able to become 
her subject: “I am Dais; Bates 
in the desert, stretched out on 
the floor of my tent, sur- 
rounded by the intense heart 
and dryness that has not let go 
for months, or is it years . . 

There follow 120 pages which 
purport, successfully, to 
describe Daisy Bates’ own 
story of her years in the desert 
- acceptance by the Aborigi- 
nes, the years in Ooldea astride 
the main railway line, with all 
its corrupting impact on the 
locals, the onset of frailty and 
age, the angry retreat. And 
then Ms Blackburn returns, 
intrudes, inserts herself back 
into the story, for the last 
years. 

This is a fascinating exer- 
cise. Part of the quest is the 
unravelling of a mystery, 
because Daisy Bates was a liar 
who told whopping stories 
about her grand Anglo-Irish 
Protestant background (she 
was a Catholic orphan), her 
meeting with Queen Victoria 
(she travelled Down Under as a 
penniless free migrant, soon to 
be a bigamist), and so on. 

As the author observes, 
“Some of what she says is true 
but a great deal of it is not and 
it is such an odd process trying 
to separate the person who she 
was from the person she would 
have liked to be, pulling the 
two apart and untangling their 
embrace.” 

But Julia Blackburn is 
concerned for a mythical 
rather than a literal truth 
about Daisy Bates. There will 
be comparisons with Bruce 
Cha twin’s Songlines, but I do 
not thtoic that means much. I 
suggest to booksellers that 
Daisy Bates in the Desert 
should be stocked, in 
substantial numbers, either 
under “Biography", or 
“Travel”, or, best of all under 
“Fiction". 


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Business Books 

tm Tnesday, 28 June. .. > 


<•« - 


This regular review will cover some of the most 
important and interesting business books published 
Internationally over the last three to six months. 

This issue will contain reviews on new 
management texts, studies of industries, new 
economic research, the latest business biographies 
and new tax and legal works. 

To advertise contact 

Julia Copeland 

Tel: 071 873 3559 Rax: 071 873 3098 
One Southwark Bridge, London SEl 9HL 


FT SURVEYS 


XVI WEEKEND FT 


FINANCIAL TIMES WEEKFND JUNE 4/JUNE 5 1994 


TRAVEL 


There is always something going on in New Orleans, says Christina Lamb . It is a 24-hour city given to food, music and cosmopolitanism. 
Away from the bright lights, Nicholas Woodsworth travels the backroads of southern Louisiana and finds some fun 


Hedonism 
on Bourbon 


Street 


T here is something about 
the air in New Orleans 
that makes perfectly 
normal people yearn to 
throw off their everyday 
skins and become artists, writes 
Christina Lamb. 

Maybe it is the rlverport aroma of 
crawfish and spice; or the Mediter- 
ranean ambience of outdoor caffes 
and stucco houses with Iace-pat- 
teraed wrought- iron balconies; or 
just the way the sky hangs low over 
the Mississippi as a lone saxophon- 
ist serenades the sunset. 

It happened In the guesthouse in 
which I was staying. A 50-some- 
thing couple at the next breakfast 
table pored over guidebooks and 
maps, the man p lanning the day's 
activities like an army assault 
On the third day the meek- 
looklng wife bad swapped her tweed 
suit for a long flowing garment 
stamped with large yellow and red 
roses. Under a floppy straw hat 
adorned with sky-blue feathers, she 
bore a new and determined expres- 
sion - and an interesting brown 
paper package. 

Instead of following Mr Dragoon- 
master, she headed for the hotel's 
small courtyard with its crumbling 
fountain a nd , lighting up a cigarillo, 
began painting bold indecipherable 
strokes on a pristine sketch pad. 

The landlady had obviously wit- 
nessed such a metamorphosis 
before. Passing by with an armful of 
freshly laundered towels, she nod- 
ded encouragingly ami said - “That’s 
coming together”. Flushed with 
pride, the formerly meek-looking 
wife returned to work with new vig- 
our, making me feel mean that I 
had walked past without so much 
as a glance. After all, what was I 
doing but making feeble efforts at 
romantic poetry in the shade of a 
crooked banana tree. 

New Orleans was once a mecca 
for aspiring artists and writers, pro- 
viding the setting for Tennessee 
William’s play, A Streetcar Named 
Desire, and inspiration for John 


Audubon's Birds of America paint- 
ings. But these days, most people 
associate it with two big events - 
March Gras, the pre-Lent carnival 
which rivals Bio’s as the world's 
biggest party, and the Jazz Fest 

Unless one is a lover of crowds, 
the best time to savour the city's 
atmosphere may be outside the two 
main events. There is always some- 
thing going an in New Orleans. As 
the birthplace of jazz It is a magnet 
for musicians. Parades and festivals 
celebrate everything from tomatoes 
to Tennessee Wiliams. 

The French Quarter, or Vieux 
Carre, the original part of the city, 
is busy. On my first afternoon 
there, admiring the Spanish-style 
Iron-work and cool inviting Interior 
courtyards of Royal Street, 1 came 
across Blanchette and 
playing baroque music on multi- 
stringed lute-like instruments. 

Around the comer, in front of the 
white Disneyland fepade of St Louis 
Cathedral, on Jackson Square, a 
melancholy jazz trio was competing 
for attention with a group of long- 
haired blues musicians, one of 
whom was using string tied across 
a large card as a bass. In the park, a 

gag gle of gi ggting black SChpol chUr 

dren had gathered around a down. 
Along the railings, artists made 
sketches of tourists for $5 a time. 

As the shadows lengthened, a 
squat old woman, swathed in tur- 
quoise crfepe with a huge berfb- 
boned hat, dismounted a spindly old 
bike and set up shop as the Star 
Lady, predicting the imminent 
arrival of tall dark strangers to 
breathless women in short skirts 
and scarlet lipstick. Nearby, a group 
of punks with riaghfag shades of 
luminous hair queued at the Lucky 
Dog, a giant tin hot-dog on wheels. 

New Orleans owes its cosmopoli- 
tanism to its history. Founded in 
1718, it is the only US city to have 
changed flag six times — Fr ench , 
Spanish, French, American, Confed- 
erate and Federal Union. But it was 
the brainchild of a Scotsman. 










sviSife 



John Law, a crooked financier 
from E di nb urgh who had won his 
way into the affections of Philippe 
d’ Orleans, regent for the infont 
Louis XV, to became his de facto 
finance minister, conceived of a 
scheme to make France rich 
through colonising the Louisians 
territory. Establishing the settle- 
ment of La Nonvelie Orleans, he 
sold real estate to Europeans. 

But it was not quite the paradise 
Law described. Instead of fabulous 
wealth, colonists found a crude col- 
lection of sharks on a swamp, beset 
by fire, yellow fever, hostile fadfe™ 
and hurricanes. As the swindle was 
uncovered. Law's company went 
bust, although some tenacious colo- 


Now (Means. Thera is 


nists r emaine d, the city passing 
into Spanish rule, then back to 
French, becoming a flourishing 
port, before being sold to US presi- 
dent Thomas Jefferson by Napoleon 
in 1803 for $15m. 

Today the spirit of J ohn Law Eves 
on in the city’s hedonistic charac- 
ter. This is most evident on Botov 
bon Street - a neon jungle of strip- 
bars and tacky T-shirt shops, with 
music oozing from every crevice. 

Thera is something very special 
about hearing jazz in the place it 
was bran, and New Orleans contin- 
ues to produce great musicians 
such as the Neville Brothers, Dr 
John, Wynton Marsalis and Harry 
Conmck. Just $3 (and a wait) can 


: In the place It wn bom 


buy an evening of traditional jam in 
Preservation Hall where some aged 
founding fathers of jazz s till play. 
Further along, at Lafttte’s Black- 
smith Shop, you can listen to piano 
in perhaps the oldest bar in the 
state. Dating from 1772, it presents 
a striking sight with its original 
timbers and soft brick, like the cre- 
ole cottages of the first French set- 
tlers. Blues lovers adore the Old 
Absinthe House. 

The New Orleans tourist author- 
ity does little to boast of its musical 
heritage, offering only a few glass 
cases of memorabilia in Louisiana 
State Museum, arnrmg them Louis 
Armstrong’s first cornet and a pair 
of Bix Beiderbecke’s cuff-links. 


Armstrong Park, named for the 
city’s most famous son, is sadly 
dilapidated beyond its ilium hinted 
arch. Inside, Congo Square, where 
last century free blacks and slaves 
would congregate to improvise 
music and dance, is silent save for 
the groans of some drunken hobo. 

StoryviUe, a legal red-light dis- 
trict which flourished from 1898 to 
1917, attracting players such as 
Buddy Bolden, Jelly Roll Morton 
and King Oliver, who developed 
what we know as jazz, is not safe to 
explore - the city Is sadly crime- 
racked. 

After music, the highlight for 
many visitors is food. Of both Cre- 
ole and Cajun origin, local speciali- 


ties include catfish, alligator, jam- 
balaya, gumbo and sweet pralines 
washed down with Dixie beer. 

New Orleans is a 24-hour city, and 
reward for staying up all night 
should be breakfast in Caffe du 
Monde. From there you can saunter 
across to the riverside Moonwalk to 
watch snub-nosed barges and 
brightly painted paddle steamers 
emerge in the morning mist 

As the sun meets the moon In the 
sky mid the saxophonist plays a 
final rendition, of Do you knot a what 
it means to miss New Orleans before 
leaping on the red riverfront street- 
car, do not be surprised if you feel 
inclined to stay to write that long- 
planned novel, or take up painting. 


A jungle of arc-tit freight yards 
and chemical storage tanks on 
the Mississippi at Baton Rouge; 
walls of leafless trees rising 
from the black water along the causeway 
in the Atchafelaya Swamp; hunters’ 
pick-up trucks parked in the mist by the 
roadside. There is not much to see on a 
dark winter's morning on the highway 
west of New Orleans, writes Nicholas 

Woodsworth. 

Driving. I wonder why anyone bothers 
with such refinements as guns and hounds 
in Louisiana: there are opossums and 
racoons, muskrats skunks, squirrels 
and porcupines squashed flat on. the roads. 

At Eunice, in Prairie Cajun county, a 
sign - “Links” - brings me to a halt at a 
gas station an the edge of town. “Seven- 
course breakfast?" asfcs the man behind 
the tQL For people pam^ng through Eunice 
early on a Saturday morning, a seven- 
course breakfast is a link of Cajun boudin 
sausage and a six-pack of beer to go. 

Where are they going? To Fred's, in 
Mamou. I am on my way to Fred's, too, 
but decide to stick to a single course. Back 
in the car, the sausage is hot - so spiced 
and fiery that I cart feel my breath flaring 
out of my nostrils. I run back - blessed 
relief - for at least part of the remaining 
menu. 

Mamou iS strain but Still I manag e to get 
lost in its broad, flat grid of shacks and 
straggling bungalows and end up in front 
of Bates Seafood Store. Eventually, back 
on Sixth Street, X see the sign I am looking 
for: “Fred’s Lounge - Cajun Music Capital 
of the World - Laissez les Bans Temps 
Router 0 . Can' you actually translate “Let 
the good times roD” in such, literal fash- 
ion? in Mamou, cm a Saturday morning, 
you can do almost anything you like. 

All the windows in Fred's are blacked 
out Inside, 9am looks to me like 9pm. It is 
not Just the lar.V of daylight; it is the 
cigarette smoke, the blinking neon beer 
signs hanging an pink walls, the packed 
crowds swifting Bud and vodka-and-7, the 
Jukebox with the sign above saying “No 
standing on the jukebox”. It is the couples 
locked in a fast-moving two-step that has 
them careening around the miniature 
dunce floor like billiard h alls- It is Donald 
Thibodeau and his band, Cajun Fever, 
pumping and scraping away In the comer 
for all they are worth. 

Fred’s, as the saying goes, is an institu- 
tion. Quite what kind of institution I am 
not sure, but Fred's has been letting rip 
early Saturday morning, week in and week 
out, for more than 30 years. Fred died not 
very long ago but his wife, Taute Sue, 
hosts an equally exuberant gathering. 

Its stated purpo se is a live weekend 
broadcast by KKPI 1050 - the Voice of 
Cajun Country, a radio station down the 
road in Ville Platte. The real reason, 
though, is that Cajuns like to get together 
and laissez les bons temps radar. The ear- 
lier they start, the further they rofl. 

A plump man in a moustache and cow- 
boy shirt is Standing in front of Don Thibe- 
deau’s microphone and doing a little radio 


Down at Papa Paul’s 
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advertising between sets. He is reading the 
ads in French. 

My French Is all right But “Charlie's 
Meat Market” and “Goodyear Tyres" and 
. "live bait" and “Cajun hot sauce” are the 
only phases I understand. The rest Is a 
French so twisted by 300 years of emigra- 
tion. that not even the French understand 
what is being said. 

Tiny T&nie Sue - who, with blue-rinsed 
hair, imitation, pearl necklace and large- 
framed spectacles, looks like my grand- 
mother - seems no more impressed than L 

Swigging from a half-pint bottle of bour- 
bon, she nudges the plump man away 
from the microphone, calls for Donald Thi- 
bedeau, and lets go a great whoop. As 
accordion, guitar, violin, steel pedal guitar 
and drams break into another rambunc- 
tious two-step, she jitterbugs off across the 
dance floor to grab a man. My grand- 
mother might sometimes feel like acting 
that way, but I do not believe she ever has 

AH those packed Into Fred's are wearing 
their finest cowboy boots, their cleanest 
baseball caps. It is, after all, the social 
occasion of the week, and rice Adds, craw- 
fish ponds, tractor repair shops and other 
workaday places are left Ear behind. 

I meet James and Anetta, who began 
dancing here in their teens and are still 
dancing here in their middle age. ’“This is 
the same bar I grew up in - place hasn't 
changed at all”, James tells me. "Not even 
the people have ’changed." Watching Tania 
Sue and others hi their 60s, 70s and 80s 
bopping about and playing the fool, I real- 
ise he is right these old people are just 
young people in disguise. Cajuns have the 
knack of staying young for life. 

I am not sure that I do. The morning 
wears an and the pace begins to tefl. Two- 
stepping is tough. By noon, when every- 
one - including Taute Sue and the entire 
staff - piles out of Fred’s, only to pile into 
Casanova's next door for the afternoon 


dance, I have bad enough. I wander over 
to Jeffs Diner far the blue plate special: 
pork roast and potatoes, rice with gravy, 
snap peas, cake with bright pink icing for 
dessert My fork is bent, my plate is plas- 
tic, but this is honest food for honest folk. 

Afternoon, and I am sitting on a door- 
stop In the pale winter sun with 70-year- 
old Pascal Fusilier, drinker, dancer, Cajun 
folklorist and columnist far the Mamou 
Acadian Press. Pascal is telling me about 
the decline and revival of Cajun culture. 
His generation, he says, saw great 
changes: the banning of French in schools; 
the passing of a subsistence economy with 
the discovery of oil; the opening' up of 
remote swamp mid bayou with the build- 
ing of roads . When he was young, Cajun 
was a dirty word, a near-defunct culture. 

What brought it back? He points across 
Sixth Street to Fred's Lounge. “Music”, he 
says. “We may forget how to speak French 
one day, but weH never forget how to ring 
it” 

Mi d night in Mamou, and It is latterly 
cold. Fred's is closed and most of white 
Mamou fest asleep. Black Mamou, though, 
is just waking up. Down on the edge of 
town. Papa Paul's dance hall is shaking, 
rattling and rolling as the wooden-plank 
floor begins to bounce beneath the rhyth- 
mic tread of dancing Creole feet. 

I am a bit nervous as I stand at the bar. I 
am the only white in the place. "Klnda 
rough down there”, they told me in Fred’s. 
“Papa Paul packs a pistol”. It was not just 
some Mamou tongue-twister here is stent 
looki ng Papa Paul at the cash register, a 
revolver in a holster at his hip. But every- 
thing turns out fine. 

The music is wonderful. Like Cajun 
music, Zydeco, the music tit rural black 
Louisiana, is accordiortdriven and usually 
sung in French. But it is music with soul, 
with spice, with Caribbean flavour. 
Indeed, Pooky and the Heartbreakers 
ma k e Donald Thibodeau and Cajun Fever 
sound like hayseeds. Certainly, rooky’s 
music is too subtle for me to dance to. I 

S? w * n ** ft*** toft at Papa 

Paul s I step all over the feet of the young 
woman who is kind (and foolish) enough 
to dance with me. 

Two hours of Zydeco and I pack it in. It 
w exhausting. I lie in bed in the dilapi- 
<toted hotel across from Fred’s, but cannot 
sleep. It is freezing. There Is a gas 
“ ™ om > a **■*. Primitive thing that 
looks like a pre-industrial revolution 
fsperunent, all monstrous valves and 
knobs andstopcocks. It is useless, f cannot 
5™ “L? 1 ® ^ 11,6 rwxn is too ugly. 
2? flo ° r k Parted grey, thepSl- 
mg wallpaper brown, the bedspread toe 
f red’s "ate and Jeffs cake. 
And Ue and. to the rhythm of 
jememher^ pieces, tap my toes against 
3011 toto* of Mamou, 

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it was Uke coming, home, 
percept that we did not i»™+ 
^a.-wall or prune an orange 
- 1, -tre&or unstop a ifrtrin . ' 

-i. Biit, driving down from 

Fitted*^ airport, we fettthe famil- 
iar- wonder that we should he 
among the few foreigners who. knew 
— had -half lived in — the special 
' carner-hf Lazio so beloved by Ital- 
ians.- 

. In irifre years we commuted along 
those TOudlas dozens of times. Pass- 

ing Latina,.^ wooM watch tbeter- 
► rain changing From there it dis- 
: tends, as &s± and nearly as green, as 
a shooter table, westwards -to the. 
beaches below Anrio, across 
the Apfdan way to collide abruptly 
with the' mountains , and: south, to- 
wberetoeytirdp into the sea at Ter- 
•*“ radna. .-■* _• . ..." 

TMs great, plain was- for centuries, 
the. putrid;, mosomfo-infested Pon- 
tine marches. It was- drained 
_ invigorated by Mussolini in the 
^ 1930s to inore lasting effect than his 
' efforts with the trains. 

Soon we' would look eagerly- for 
the incongruous eruption that' rears 
on the horizon, seemingly a ragged 
island, which to prehistoric times tt 
was. Nowadays the onset, stewing 
east, embraces the. craggy, -LTOWt. 

- high saddle of Monte Sirceo, so that 
one flank: Is turnsd'tothe abundant 
sun. Falling to rocks and clear, 
clean water, this is one of the most 
beautiful, balmy and unpolluted 
shorelines of the Mediterranean. 

Scattered white; houses peep out 
of verdant vegetation. Nearly; ail, 
s Including tljs one we still presume 
.. to call our house, are the second 
"■homes of Romans. The scene never • 
y changes,, for. this is a natirmni 
'*•' vrtth strict controls. ... 

' At one end, the mountain serves 
*■ to shield the .two-tiered town of. San. 

- Felice Sircedi The medieval walled 
-part, astride a hill top, is officially 

^sign-posted as^Cmdrb Storioo; locals 
:i never call it anything but the Paese. 

-It commands -the newer, sea-level . 

- district of La Cana, with its shop- 
ping centre, promenade, beaches, 

' seafront hotels and man-made port 

- At the . other end is . the stylish 
-’hotel and yflta complex of Punla 

Rossa, draped over the point of that 
name. We had always assumed it to 
-be above our station. Now here we 
: were spouting £900 to rant one of 
several apartments - virtually a tit- 
tle house - at- the foot of toe hotel 

! 'ir- 


for two weeks. 

- Perched a few feet above the sea, 
it had some pluses over our house. 
We could be snorkeling among 
shoals of small fish m moments. We 
were used to trekking down the gar- 
den path, amid tenon, orange and 
apricot trees, oleanders, hibiscus 
and masses of bougainvillaea, stroll- 
ing along a lane and descending 
exactly 100 steps to gain a rock 
perch. At -weekends, when exuber- 
ant youths arrived with radios, we 
were miffed that TtaiinnR should 
invade our te rri tor y . 

If the sea was petulant, an alter- 
native was the La Cana beaches, 
most of .which are kept pristine in 
season by concessionaires - at a 
price. We preferred to drive round 
the Girceo to the superb sand* and 
dimes that stretch 15 miles north 
from abeam of Sabaudia. There 

Alan Pohsford 
enjoys an unpolluted 
Mediterranean 
shoreline 


' development is restricted to a tew 
beach houses and bars. 

At Paata Rossa we had another 
Option - ah adjacent sea-water pool, 
gouged into a vertical cliff fes- 
tooned with greenery. We usually 
had it to ourselves. And that exem- 
plified the dffamma of such ftla gntil 
hotels in southern Italy. With two 
or three months of hot sun remain- 
ing, the a B randing gardens, the 
guek rooms above, the elevated res- 
taurant with magnificent views on 
three sides, were nearly deserted. 

■' For this was the beginning of Sep- 
tember. the time called sereno, 
-when August’s excesses of heat and 
humidity have exploded in spectac- 
ular thunder storms, leaving the 
sea warm and generally placid. But 
the tide 1 of visitors, virtually all Ital- 
ian. which starts to rise in late July, 
streams out on the last Sunday of 
August Only for a few more week- 
aids will San Felice bulge. 

Ten years.ago the cordial San Fel- 
icianl readily accepted us into their 
community as an Anglo-Saxon 
minority of two. We are still a bit of 
a novelty. For this is no Costa del 
Sol, or Provence, or even Tuscany. 
No expatri a te parties here, no golf 


courses, hardly any private swim- 
ming pools. 

How smug we were Occasionally 
stray fellow-countrymen would 
appear in Carle tto, La Sana's small 
supermarket Inglesi we would hfas 
ftom the sides of our months as we 
dodged behind the pasta shelves. 

Along the main street many 
friends would shake our hands 
when we returned from even a brief 
visit to Surrey. Like Claudio, ta the 
Sant 1 Andrea cantina, who fills your 
five-litre darmgiano from a cask for 
£3 as you sample his several variet- 
ies of wine. And Pita, always snfl- 
ing, (fispensing paste aS’uoao, filled 
unfilled. 

On Friday evenings the street is 
in t urm oil, double-parked Massera- 
tis, Ferraras and Range Rovers with 
Roman number-plates disgorging 
big spenders in very dark glasses 
and shoulder -sl ung Jackets. 

A place of somewhat grim fascist 
architecture. Sabaudia is in fact a 
lively place with smart shops and 
several restaurants worth the 15- 
minnte drive from San Felice. La 
Pineta, for instance, does wonders 
with fresh mussels, clams and 

scampi 

San Felice has adequate eating 
places, many combining a pizzeria 
with the resta u rant But our favour- 
ite outings far Sunday lunch are 
along the coast We always feel 
euphoric eating seafood in the sun- 
shine at an outside table on the 
quayside at Anzio, with a sweeping 
view of the harbour and ffaharriipw 
selling their cat ches nearby. On the 
way back, digestion is much 
assisted by an espresso or an 
ice-cream In adjoining Nettnno, a 
good-looking town With hundgrtwifl 
vfflas, a Mg marina and a highly-or- 
ganised beach. 

Our other choice is La Campania 
on the beach at Terradna. Further 
on, Sperlomoe, an a tt r a ct i ve combi- 
nation of hill-top alleyways and 
golden sands, makes a good day-out 
Indeed, so does Rome - preferably 
by rail 

From Fossanova. a 25-minute 
drive inland from San FeHce, trains 
to Rome take an hour, though it can 
be worth mi gang one to visit the 
13th century abbey along the road 
from the station. A mere 90 minutes 
from Rome, San Felice will never- 
theless continue to hide from for- 
eigners. This is fine with us - hut 
what a waste. 



Devon: good 
waves, man 


T hese guys tell me we 
are driving after high 
waves. I am the green 
one here, the novice 
lured by the prospect of 
“pure pleasure.” 

We stop at Welcome Cove and it 
is a most unwelcome place. There is 
rain, grey sky and only a bit of light 
left in the July evening. Thin lines 
of black coral run down the beach 
and disappear into the sea. Beyond 
a steep cliff is a barren landscape of 
shapely curves. 

Legend says that about 100 years 
ago formers used to gut their sheep 
on those bills to placate the devil 
Apparently, they blamed evil spirits 
for killing off their flocks. But the 
guys I am with are not supersti- 
tious. They are waxing their boards 
in glee - waxing mates the board 
less slippery - and telling me we 
are in luck. They reckon these are 
fine waves. 

Soon. I am up to my chest and out 
of control in sea a murky shade of 
green, holding the surf board tight 
A seal pops up and bobs off. 
Another high wave crashes over my 
head, sweeping me closer to those 
dark daws. What am I doing here? 

There are other places to surf to 
Devon. Black figures in wet suits 
hunched over boards like jackdaws 
waiting for waves are a common 
sight along the fractured north 
Devon coast at any time of the year. 
They have been there since the 
1960s, when Australian lifeguards 
first drifted over with their hoards. 
Locals say that some of the best 
surf in the world is at Croyde Bay, 
where waves roll up a sandy slope 
and bounce off an oyster bed. But 
there were no waves to speak of 
there that day. At the bar in the 
Thatched Bam Inn it was decided to 
go and look for some. Hence the 
road trip. Pity. 

Croyde is a laid back village 
refreshingly free of gloss. It is part 
of a chunk of land between Barn- 
staple and Dfracoombe that juts 
into the sea like a hooked nose. It is 
just west of Exmoor national park, 
and is an unfoshionable but friendly 
landing place for Atlantic swells 
and travellers to south-west 
En gland seeking a daring alterna- 
tive to cream teas. 

More than a few visitors to Devon 
find their way there each year, but . 
most pass it by. The lure of the 
theme-parked, congested south is 


apparently too much to resist 

In Croyde, a place of contrasts, 
surfers hang out in narrow high- 
banked lanes. White cottages with 
thatched roofs stand in well-kept 
gardens, m the Thatched Bam, an 
inexpensive menu includes pheas- 
ant pie and fresh Lundy plaice. A 
stroll away is Croyde Bay and a car 
park where surfers often camp. 

Those black figures you see In 
wet suits waiting for the next wave 
are not all lithe young men. There 
is a core of committed surfers well 
Into their 50s who dare the waves. I 
tracked down one of them eating a 
ham sandwich in his garage. 

“Pure pleasure, that's what I call 
it.” Altm told me. His garage, where 
he crafts foam and polystyrene into 
surf boards which he sells, is just 
down the road from Braunton, an 
lniBTid village a few miles south of 
Croyde. A wizened man, Alan Is not 
quite bald. He is an agile 58-year-old 
who surfs whenever there is a 
wave. Often he is out at 4am. 

“Surfing is much more than a 
sport; it determines how you live,” 
he said. “Pm addicted to the rush 
you get from the energy of the 
wave. But it’s Impassible to 
describe. You*ve got to try it” I was 
told about a local barrister; a man 
who doesn't want to miss chances. 
In court, be wears a wet suit 
beneath his gown. 

Other passionate surfers Include 
Surfers Against Sewage, a group 
leading calls for a clean-up of Brit- 
ish waters. Occasionally, their 
members surf wearing gas masks. 
As well as fish, they reckon, you 
could catch ear infections or hepati- 
tis. You might even die. 

I suppose it was cavalier of me to 
try to learn to surf at Welcome. 
These were not beginners’ condi- 
tions. I caught a cold but no waves. 
At least I got out alive. 

■ Equipment: wet sails are 
essential for warmth even in the 
height of summer. Beginners 
should use long boards, which are 
easier to balance on. Boards and 
wet suits can be hired for around 
£20 per day. More information from 
British Surfing Association, tel: 
073040250. 

■ Details of accommodation in and 
around Croyde from the tourist 
information centre, Barnstaple, 
north Devon, tel: 0271-388583. 

Chris Eales 


The lost wonder 


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hen Yale profes- 
- sor * Hiram 
Bingham stum- 
bled upon Machu 
Picchu in 1911, he had con- 
. . founded his sceptics by over- 
coming the absence erf accurate 
maps of. the, Peruvian high- 
, .lands, the toughest erf terrains 
and 300 years of jungly, growth 
that had all but obscured the 
'.stone ruins. .Worst, he had 
endured the scepticism of his 
.fellow academics, who. doubted 
that toe so-called Lost Ofy of 
-.the Incas ever existed. 

Modern- day tourists have 
had to confront* different hur- 
dle - terrorism. Since the foun- 
ding of the Maoist Shining 
Path guerrilla movement in 
the early 1980b* Peru has been 
" embroiled- in a ghastly civil 
war that has claimed the lives 
of at least 26^00 people. For 
' much , of the time the Cuzco 
highlands, where Machu Pio< 
chu Is located, have been prac- 
tically out of bounds. 

Even during hilts in the con- 
flict, Peru’s . reputation for 
bombs; bullets and bandits 
kept an but the hardiest travel- 
lers away. Machu Pfcchu, lost 
for 300 years, vanished for 
another decade 
But things may be changing. 

- Since the. capture of Abimael 
Guzman, toe intellectual 
. founder of Shining Path, there 
1 has been a slowdown - though 
not a halt - of terrori st activ- 
ity. And tourists are tenta- 
tively returning to Machu Pic- . 
■ chu . 

. They are being encouraged 
by the reputation of the Lost 
City of the htcas, fed by lyrical 
descriptions such as the one in 
the preface of Bingham’s book: 
"In the sQblimlty of its sur- 
roundings, the marvel of its 
rite, the character and the 
mystery of its construction, the 
Western Hemisphere holds 
nothing comparable,” 

If the ancient capital grips 
toe imagination, the modem 

cos, Lima, seems to leave most 
visitors under -enthralled. It 
feais all the scare of economic 
as. well as terrorist catastro- 
phe. There are slums, diesel- 
thick air mid swirling garbage. 
Armoured guards loiter on 
many street comers, and there 
are battered tanks discreetly 
Parked alongside important 
btfdtogs and windowless sky- 
scrapers patched up with 
wooden sheettag in toe after- 
toath of car-bomb explosions. 
-Fortunately' for those with 
little inclination to -seek out 
Lima’s more fleticate side - 
colonial architecture, treasure- 

stuffed qq fl fc p qgfaft- 
live cuisine - the Peruvian 
hi ghlan ds lie just 45 minutes 


away by air. It is from the 
regional capital erf Cuzco, for- 
mer centre trf the Inca’s 
Sprawling empire, that modem 
travellers begin their pilgrim- 
age to Machu Picchn. 

I made the trip recently, 
catching the tourist train from 
the: centra! railway station at 
6am and dapping my hands to 
keep warm in the highland 
chill- We set off precisely on 
time,: but progress thereafter 
was 7 less than huDet-Hke. 

The steep-sloped .terrain 
obliged toe train to zigzag as it 
dragged itself from the valley 
floor, first lurching forwards, 
then backing up, before man- 
oeuvering ahead agate. The 
same house or tree or sheep 
would appear in the. window, 
slipping behind, before appear- 
ing agate as we zigzagged 


The crawling pace, though, 
did afford more time to sponge 


David Pitting 
rides a slow train 
along the Andes 
to Macchu Pichu 


up the views of bulging mus- 
tard-brown hills, the unfnldmg - 
plates and the glimpses of 
snow-packed mountains. 

Although Machu Picchu is at 
a lower altitude than Cuzco, 
which lies at 3,310 metres, toe 
impression was that the train 
was inching higher, breaking 
into evermore remote valleys 
of sun-seared grass and grazing 
animals. . 

The tourist train, three car- 
riages of clicking and clatter- 
ing Japanese camera equip- 
ment was said by the 
authorities to be the safest way 
to Machu PicchtL But it was 
difficult to understand how - 
bOlted into the carriage as pro- 
tection against thieves, I felt 
tike a participant in, canned 
target practice, crawling at 
enticing speed up toe moun- 
tainside. 

It was perhaps an indication 
of Peru’s catastrophic eco- 
nomic state that thievery, to 
which so many people have 
been driven, was considered a 
greater threat than one of the 
world's most determined guer- 
rilla armies. 

After a couple of hours the 
landscape changed with almost 
indecent abruptness. The neat- 
ly-ordered scorched yellows 
turned to luxuriant, rowdy 
plant-life as the train was swal- 
lowed by jungle. 

The change of scenery 
brought with it a change of 


mood. Sunny and tight became 
brooding and mysterious. We 
went on, edging into the heart 
of this strange jungle, before 
stopping at a little station. 

Here, we swapped toe rattle 
of the train for toe drone of a 
bus, which heaved itself up the 
plant-entangled mountainside. 
The train station disappeared 
below. Suddenly, unexpectedly, 
the pilgrimage ended. Just 
over there was one of the 
world's most extraordinary 
sights: Machu Picchu. 

The postcard image was 
instantly recognisable : a stone 
city labyrinth with a ribbed, 
dinosaur-backed mountain in 
the background; Inca terraces; 
ruined palace walls; even a 
llama. But Machu Picchu, 
unlike the pyramids of Egypt 
or the Great Wall of China, 
was not diminished by reality. 

What celluloid images fell to 
capture Is toe tremendous tum- 
ble and jostle of jungle-infested 
mountains soaring skywards 
and plunging valleywards to 
the Urubamba river below. 
What the postcards miss, too, 
is the highland silence, toe 
humidity, the drilling heat gnd 
the atmosphere of centuries 
undisturbed. 

Most importantly, pictures 
could not convey the essential 
beauty of Machu Picchn: the 
almost organic harmony with 
which the stone city appeared 
to grow, with the same ease as 
a bush or a tree, from its 
mountain saddle. So perfectly 
carved were the stones that 
they seemed to nuzzle 
together. 

The conquistadors never 
found Machu Picchu, and it is 
stQl not known precisely what 
it was for. It may have been a 
fortress, a pOgrimage centre or 
home to the “chosen women” 
Of toe Tnrfl Bingham thou ght 
it was the principal city of the 
Last four Inca rulers who 
retreated to the impenetrable 
hide-away following the arrival 
of Spanish aggressors. 

Whatever, it is now one of 
the wonders of the world. 
Bern's president, Alberto Fuji- 
mori, thinks so, too. Aware of 
the importance of a good press, 
he is fond of telling foreign 
journalists about the growing 
number of visitors to toe Lost 
City. For that, says the presi- 
dent, one can thank Wm and 
the success of Us war against 

Shining Path. 

Peru, insists the president, is 
now as safe a destination as 
London or New York. There is 
no need to be frightened, he 
says. However, readers who 
are familiar with those two 
cities may take only limited 
comfort from Ms assurances. 



HOLIDAYS & TRAVEL 


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SPECIAL INTEREST 

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Sarrevtto Speech also aaaOabk 

CUaMa&w 

ATOL2B? ABTA I77M AITO 


INSTANT A\ All, ABILITY 

081 686 5533 


ECOHOMY BUSINESS 
S 1st CLASS 
mmiwham mm ns nsr 



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J TRAVEL Jc f U B 
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ABXA 1AIA. FULLY BONDED 
W1C 081-451-7778 FAX 081-45! 4727 


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Any datioati on woridwidc. 
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COTE Q-ATUR hmm vOnn nrwf onto tar VENICE. «StOrtC CartTB. InTTWCUiMB gwdon 
PManbcakxa ltd. TaUFta: <171 361 ZMZ ^+39418282738. 

CRUISING — — 


FRANCE 


ST.TROPEZ 
- Lovely Villa 
Sleeps 8, Swimming pooL 
Available 9 July 2 weeks and 
20Aug2 weeks. 

Contact International Chapter* for ihk 
& other beautiful properties in Prance: 

071722 0722 



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For advertising information contact 
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XVIII WEEKEND FT 




COUNTRY PROPERTY 


STRUTT & A 
PARKER 1 ®* 



Hampshire Banigimfce 8 milm,Wiacdra 4$ maaaee 
A rtlaiMIndfttanalcmmiry boose cf pate qnaffiy, Anted In unapclt 
rml Nortt Umqabliw. 5 reception n>m today manerautaiSfimtaf 
bednMB and Zbnhxwwn. Ouutaofiogdodt had indoor mmateprel m ■ 

g]md tUned bon sauanic.Sapl»iica«Bd air boKBg aad ooa&ngqMmi. 
YodLp»vtxlB3iw«ndI»>dBC^gBdofcC h« O c a y. 

A 3 bedroom cottage it avritabfc sqparaKfy. 

AbomSjacias. 

NeM**7 OOk* Ttfc (0635)521707. Mlttfift 



K<nt - Alkham M204irft*,Fbfciajane5inac* 1 C*mi3bi»y 12nnlo». 
A Lfctod coahybPWnHERWdb| Mil hrMriii 
5 ipccpuon rotxm. 6 bcuhootm. 3 bahrooc M. L ci m rr r-cmA cc peck. 

66" fboctioa roan rad 3 toaUjoj toona. Esanne oudxobiingi, reabireg 
|prf Twyir rmyt L— i gCMpOd yrfCDE l>iftlhfcM.ffwiJQdBL 

About 5 } saw. Rtglea SXTSfiUL 

CanfertMrrOflioeTfcfc (0227)45 1123. Ref 8CD3723. 


13 HILL STREET BERKELEY SQUARE LONDON W 1 X SDL 
Tot (Q71J 629 7282. Fax: (0711 409 2359. 







INTERNATIONAL 


FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 

LONDON PROPERTY 


Knight Frank 
^ & Rut ley 







GLOUCESTERSHIRE About 1,748 acres 

Nr Cheltenham 

NonUcach 4 m do, Cire nce st e r 17 miles. Central London (A40/M40) SOmSes. 

A CLASSIC LANDED ESTATE IN THE HEART OF THE COTSWOLDS 
INCLUDING THE ENTIRE VILLAGE OFSAJLPERTON 

Grade II Manor with e o mjiMfxfi ngviewa ovcrpaiM an d. Pamxjgcflpd pheasant shoot of the 
hjgbett challenge and csriirm cnt- 33 Horaca and cottage*- Productive in hand mixed farm, 
substantial ™iif quota. Tratfioocal mbit rt m A ymnir pry^nt. ^ SoiUc yard- 

199 acres of woodbnd. 

For ante by private treaty aa a whole or In two lots 
Suvills, Banbury 0295 263535 

SaviHs, London 071 499 8644 
Cornua: Jnsda Marking 


INTERNATIONAL PROPERTY CONSULTANTS 


ED ENB RIDGE, Kent London about 28 mis 


NORTH EAST FIFE 
Nr Ancbtmnvcfaty (Scodaad) 

AbmrfM cbuctad newly bate ban ban 



i • -■ .—I 




KBiWnf 



Bidwells 

ammmmmmi 



CAMBRIDGE - GRANGE ROAD 
Well presented family house in an enviable location 
Hall. 3 reception rooms, kicchen/break&sc room, oomervacory, 
ouster bedroom and bathroom suite, 3 further bedrooms, bathroom. 
Large loft. Heated swimming pool and changing room. 
Greenhouse. Well stocked, landscaped garden. Garage. 

About Va an acre - offers around £475,000 - freehold 

Cambridge (0223) 84x842 


PERTHSHIRE - AUCHTERARDER 
GLENEAGLES VILLAGE 

A luxurious 4 bedroom apartment within 

The Gleneagles Hotel Estate 

Opportunity for membership 
of the Gleneagles Hotel facilities 
which include 3 golf courses, a Country Club, 
an equestrian centre and a shooting school. 

Price on application 

Perth (0738) 630666 

c«usnioaE Norwich ipswich lohdon Perth 


A SMALL RESIDENTIAL FARM 
with 

PERIOD FARMHOUSE BUNGALOW & FLAT 

together witfi 

FARM BUILDINGS, 14 LOOSE BOXES, EXERCISE YARD 
and 

8258 ACRES 
PRICE £495,000 

Fax & Manwaring telephone (0732) 862184 


INTERNATIONAL 


OXFORDSHIRE, ChadUngton 

Ckippiug Norton 4 arilac, Charibmy3 m3* s, Oxford IS mdts. 

A SUBSTANTIAL STONE VILLAGE BOUSE 

3 B e cc Klu m , office. 10 1teAwM, > liifawii iaSdfaBairiaia^iBd 
■BBt O«ie»a; 1tiildBBfaaHP ^|i{iiuM (ia8r c » w nifc ii »I 

AfcomOLKama fps/no . , . 

SnviBa, Bnb «7 02W 2005 


- UrrERNATIONAL PROPERTY CONSULTANTS 


On the Instructions of the Trustees of 
The Seventh Duke of Newcastle 

A Sale at Auction, 6 July 1994, of tberemakider of (Us Dakotas 
Marwnel Estate fn Nottfa^ianufalK 

The Lordship of Worksop 

f to atdude the Motoric right to support the SMariqpi's right hand at 1 
the Conmuticn and Dahe's Coronation Robes) 

The Lordship of Newark-on-Trent I 

< to inctude the Ptu l iam mh i ry Rohes of a Bidet, Manorial Staff, end . 
ilkiminstcd Loyal Address) 

The Lordship of dumber (with Garter Roba) 

And the Lordships erf the Manor afc Armealey Grange, Brinsley. 
Carcolston, CarUon-in-Lmdrick, East Stake, Egatantoo. 
Elkraiey, Evertan, Hinlhmt, Gatgford, Cuntharpe, Hardwick; 
Hodstock, Kthon, KEvington. Laneham, Man ton, Markham 
CRntou, Martin. Newthorpe, Oreton PeverdL Shelton, Steetiey, 
Stockwith. Walesby, Westerfleld, and Willoughby. To be 
included with the lots: Other robes, a ducal coronet, a 
Coronation page's w n i i i m^ fihnninated Addresses, insignia of 1 
British and European Orders of Chivalry, documents, and | 
illuminated Pedigree Book; dating from 1725. A colour! 
Catalogue and particulars of the Lots is available for £15 
(D953QJQG) by cheque or any Credit Card frauc 
Manorial Auct&wwen, 104 K ermulngl o n Hoad. 

London SHU SIB. Tet 071-7356633 Fax: 071-58Z-7S22 


(U9S3Qj00)l 
Manorial A 
L ondo n SB 

^2 


022 


ARGYLL. CfUKAN Andont school houaa, 
- ■ Otaam n dtog view r plant finds U btM +. 
ixWjra con— r vafc ry talaiLaxcai w o o rt i g a. 
3 bods sffcgarttaAsfeiraga hosting. ll/2l» 
Oasgow, 2 1/2 ha London alrpon. OtUXX) 
oBanawr-TetSOI) BBS 1205. 


STAGS 


"R'.YM-Ls' 


CORNWALL - BATHPOOL 

SilnaKd in pictamqoc Cornish Hamlet 
nUn« between Ixmaan & UAtxd (8 
miles) ami 1? miles trom ibe Sooib Cam 
neu Lone. A well presented 3 be i l i a om 
detached Bonpalow wkb 2 farther 
I wa ata mouMdolnp annexe. Views 
over Ike Riser Lynbcr mil valley. OH fired 
tcntral ketttog. Oan^ md gxidc a s. 
PRICE: a05jM>0 

51 Fore Street, Ckffiqgmo. Cmawdl PL17 7AO 

Trt.(Q570)!U321 


Bryan Bishop 


HERTFORDSHIRE 
Superb 8Vi acre site with 
planning permission for 
single dvraffing. 

Sale by tender only. 
Bryan Bishop & Ptnrs: 
Tel: 0438 718877 
Fax: 0438 716668 



HAMPSHIRE 
Nr Romsey 

(Easy access M27 Motanvay A Southampton Partway Station) 

LOTI AN ELEGANT AND SUBSTANTIAL COUNTRY HOUSE 
IN SEC LUDE D AND EXTENSIVE GROUNDS 

Kitchen^ Bct^ooms, Z^Srnmx!^ 

Service & Gaest Flats 
Garden and Grounds of 19V« Acre* 

U)T2 b BEDROOM COTTAGE IN 2 ACRES 

unS3&4 35 ACRES AMENITY LAND AND 1 ACRE LAKE 
For sale as a whole or in 4 separate kits 

Apply Romsey Office Teh 0794 512129 Fas 0794 523248 



IS OWNING A PEACEFUL COUNTRY ESTATE IN 

England or Scotland your pipe dream? 

Could you imagine having your own shoot, planting a new wood 
O ft. WATCHING THE HARVEST COMING OFF YOUR LAND? 

Are YOU AWARE of the substantial tax and inheritance 

BENEFITS OF OWNING FARMLAND IN THE UK? 

UK farmland values are much lower than in many other European countries. 
There are opportunities to purchase farms varying from 100 acres up to 
targe Scottish sporting estates of 20,000 acres. 

Why appoint; Bidwells to act for you? Acquiring an estate or farm is a complex 
mailer, particularly with the compticanoru of the farm subsidy system. 

Also, many estates and farms are not publicly advertised. 

Bidvrdls has been purchasing and managing such farms for investors for generations. 
Enjoy the many benefits of ownership and occupation while we supervise the farming 
operations, management, maintenance and accountancy. 

We locate, value and negotiate the purchase of the farm or estate of your choice; 
provide you with a comprehensive appraisal of the revenue and capital potential; 

and our estate management service is tailored to your needs and wishes. 
BidweUs manages more than a million acres of estates and forms, sporting estates, 
woodlands, commercial forests, grouse moors and game fisheries. Our clients range 
from the largest irati Curious to the individual private investor. 


Cambridge If you would ukbtobuy a farm oolestatb Norwich 
PRWF wnbcatoaCTacS (piumcuLMiur snv mstomo oh nra mcb) PTDbjHUCS 
Tel: 0ZU 841 Ml PLEASE CONTACT ONE OP OUR Senior TdtOM3 76SM9 

Free 0223 345150 . RURAL PARTNERS USTSD HERE. ta 8*03 763899 


Ipswich 

JSEkttbacFRICS 

Td: M73 4X1*44 
Fax 9473 610211 


Bidwells 


SURVEYORS 


Scotland 
RWB a&nr FBICS 
T«t 0738 306*4 
Fbe 9738 27264 



EXMOOR NATIONAL PARK 
AFFROX4* ACRES 
Whnfard 3m,DmiratamSm 
SorttAdoBBorea Or (WM (pouM *r 
4BM4AM«akrlAMiraAnre 
Brew. Tttfc Mare kndreaMcWyHirw 
K**tae«#£l95J8t 
JA TRook; PUffips Ltorenefc Led. I&etaod 
A Sags, Dtrfiamo (Q3W) 23174 (CI31CI3/JG) 


FI NLAYSQN HUGHES 

CHAFITtKCD SiURVfcVOOS 


PERTHSHIRE 

Pitlochry 

A small bofiday complex aOndog 
great potentud for expan^oo. 1 
11 Bedroomed hoosc/botel 
7 static caravans 3ooUagE8 ' 
About 4 acres with phoning 
pennissiiBL for canvan/chalet 
devdoptncnl. 

£295^00 


'll] ; B i : i 


RENTALS 


k'iT, | » 4 : f'.'Tala) * 4 :4 . 


CHARTERED - S DBVEY0RS 


TO I£T 

LOVFDQU) FARMHOUSE 
SANDY, BEDS 
Charming Pcsiod Faimboase 
sioared in open countryside 
4 bedrooms. 3 reception moms, 


wnfabopteablingandtra d i ti^ 


RETIREMENT 


AWARD-WINNING ENVIRONMENT 


English Courtyards lataat crop or awards rocognlsm the trouble wo toko with 
the earinmmoiit oT our daroloptMaUi Four Daily Hall Green Leaf Awards in 
1993 ora the most recent in a long lino of achievements over 16 years, reflecting 
our commitment to providing retirement bousing for your needs. From the 
choice or location and layout of the courtyard to tho subtle use of local 
brickwork and roof tlfca. wo ensure chat our bouses blend into the landscape, 
enhancing their surroundings. Wo wont you to benefit boa our experience by 
choosing the exceptional way of life w« offer in beautiful locations throughout 
southern England. 

Prices from £95,000 to EtlG.OOO. 

To find mit more about our properties in 


TbeEngtbh Courtyard Association 

8 Holland Street, London WS4LT 


Ground Floor Flat 

One Bedroom 

On an award winning riverside development 
pjctnresque historic village location. Eynsford, Kent 
£65,000 

Telephone 0322 866340 (evenings only) 


'lifejiiini 


Further land available. 
Tenders in the region 

of £900 pan. 

Satina HoMtOrebridee, CB1 218 
IttphaoKf^ 3S2546 


A UNIQUE PROPERTY 
will be coming up to let in an 
Isolated BroadLand setting. The 
owner is abootto embark upon a 
major renovation, however if a 

potential tenant came forward, 
the owner would consider any 
sensible proposals to mutual 
benefit 

Dot B2406, Fmandal Times, 
Oik Southwark Bridge 
London SE19HL 


M23/M25 - 2 MHes 
Peseefofly rural by forest, with walk* 
Afiwg T golf etc yet 10 mia. drive to 
Gawk*. Old deeuAed S bed 4 ree 
cottage UcfidlymodeoiiKdwUidfaL 
ggc. and CH. Stripped pme floocs. opea 





BrnmecuncrHofebylMnnsttadgcf 
■ ft* uamoenicnt Servket. 

- Edt Romm wah capiat aewth. 

Freehold or Leasehold 
Packages £28300 to £2 mfflion 


0626 776088 
VERNON KNIGHT ASSOCIATES 


Tot 071 sa 0642 Foe 071 738 5 




residential 
lettings & 
management 

in Surrey 

Esher, Gabham, Weybrtdge 

0932 859355 

77QWCreRq»fl.WgfWMwKm9UQ 


M CoOl.L k(U 


ST JAMES’S, LONDON, SW1 

A duplex apartment in good decorative „ 


Double Reception Room incorporating Dining Area, 
3 Double Bedrooms, 3 Bathrooms (2 En Suite), 



Mayfair 07 1 -625) SI 7 1 
2ii Hanover S({iiaro, I.dikIoii V> I K nAH 


Daniel Smith 


HAMILTON TERRACE 
Grade H [Med terraced boose requiring refurtetfunent 6 beds, 4 
reception rooms, S basement room +2 double garages, with pouBfljflity of 
conwHiah m to mews boose. 

LBA8S 99 TSARS £600,000 


Tel: 071 ■ 483 2972 Fax.: 071 - 7 22 1237 


DULWICH -LONDON 

-Smmmdfar dt g ooix h oab - 
UmqmaicMI rndeB g Nd SbedBixiri 
detached foudy home 
act to wefi aodfaed boteaped garirns. 

3 nrapa, fitodkhcb, heakEnt ft uffiqr ma. 
Una batenm + ctraib (famng A bah tm. 

Andf britau and pd floor dodno. 
GrnCU. Ammy energy effirietf femes 
Double garage wife lags drive. 
-Canada* for Otjand-Wat End- 
Pure nTOjOQO Freehold 
TELEPHONE OR EAX: 461 6714875 




A mkHenace bouse icqnnmg complete 
modenimiou. Emmnre HaR, Dmmg 
Room, 2 Kbdieaa, Drawing Room. 

3 Oostaboun (l Emmie}, 3 Babwno, 
3 Brebrooms (I EmuftoX Rax Roam, 

r^ r l w w w 1 ftml i w n„y nw i TT 

Rooms, Patio. Lcaae: 79 yeaa and 
3 moario from 2S.11204S, POA. 

Beadchamp Estates 

Sou Agents 

m: #714997722 Pure 071 409 1477 


Macmillans 


BLOOMBBOHWC1 
A selection of newly 
modernised stodiadL bed Oats 
situated within 300 yards of 
Russell Square. Prices from 
£49.950 - £772500 


071-266 1010 



DON 

fALS 


1 1 if: property 
MAWC.EMLM 
OROIP 

\K1. \ MIM)!I R 
'l'l l I U.I.ST'.'i IN 

tU.'lllLYH U. U/n tM. 
a M \\ UiLMLNTlN 
UK huom) 

\ TV.K KI.MSMS \Ut \ 

Til.: OS I 744-2‘M I 
FAX: US I S'>| 6422 


residential 
lettings & 
management 

in Putney 
Coombe, Wimbledon 

081-947 7351 

1 7 Ouch ftoad. WtaMkfeA SWt9S0Q 


Touachoig- 


nBMWTHDflE 9mA baouM^oArtUmd 
3rd Boor studo flat. PudcHngton Stract 
Marytatane wt. UfL Annual outgoinga 
ESSO. S4 yuar laaaeb Uad PfedkMam or 
lesfeg hvuesnw*. E8BJW0. Tab 071 724 
3100 Free 071 258 9000 

XEMSMOTONTCENTRAL LONDON LargM 
Mlectkin of quality propartlaa, E180- 
SISOOpw. Front 3 wfcs to 3 yrs. Chmd 
Aamdamscn sssasos. io-7pm 

FROM 060 p.w. CholMa ihrougli to 
Boyawaiar. Simply Wephono liuparW 
Homos 0718361183 

WANDSWORTH - SHARE HSE - GARDCN 
Aga ■ Wagh maeNon - Sun tool - Ctorewr 
Ba £374 pan. cantacc Day 081 7sa 127s, 
6* OBI B74817B 


Douhl* 4taeapttan Boom; Kitchen/ 
BraakfiMtfFkmOy Bmcu Dining Roam: 
IRAy Room: HMv Bednwm •«: en «ofln 
b mli i u a n: *ftm farther bedroamte Ftutbar 
Bathum: ArMeGartlM: Ruting; 
£496000 EVcafcald 


GEQRGE STEAD 


London -Hampstkad Area 
L ovely tree lined afreet. Scaaiifally 
renovated the wife wekwutog aunoapberc. 
4 beffiooms. double sized receptkai room, 
dining room, kitchen folly equipped, 
balbnxra. hallway and 2 separate wc. pa 
ch; well propoitioticd rooms with high 
odio^ WaS mammtoal maoaiaa bnflding' 
d<ca 1900. Located walking diauoce io 
shopping, tnnsportaaoo and leaturaUts. 
IcaadiokVHcdbotd tBIc. Owner sale. Price 
£248jMXL WID ObooouaidGr rental £500 pw 
elegantly ftmrfalied, baby grand piano. 
tnrp tac f - bramrihtrty avaJabte. 

TO. National :02J4 391581 
Ita : 0234 391319 tart : 44 214 391581 
Roc; 44 234 39 1319 


PHILLMORE 

GARDENS 

U/F house with W/F 
garden and private 
parking, garage aiso 
A/V). 3/4 beds, 2 baths, 2 
reoep, kit/b'fast room, 
dknn/WC £625 pw ono. 

W A Ellis. 071-581-7654. 
(Sat/&m viewing - 071 - 5 & 4725 X. 


urriiJE Venice/ 
MAZDA VALE 

The Specialist Local Agents 
Tel: 071 289 1692 
Fax; 071 266 3941 


VICKERS & CO, 


HAMILTON BROOKS 


WC2 1 BED. FLAT 
Bright kit. Batb, ULease £119^00. 
SELECTION ofBOKtio 1/2/3 Bcd3 
ovsifaUe to Jet in (be dry 
Saixs & Unvote Acxms 
5Q Gasau* Snar, Lwcdon BC2 


/'LL: Or I 606 1551 


PARK CRESCENT. W1. Nenfy mod 1 bod 
"■*» Wfesa ttvuughouL tarrflura wA 
wparalBly. 24 re porter. Sits, knpresatre 
■ ntr " nc * hail, Wphono. L/H 89 years. 
E12SJW0 Sate Aflontm. Samnrd Marcus 
Tab On 633 2738 Fare On 438 2849 

CHELSEA HOMESEARCH S CO Wo 
ropro som tha buyer to oavo ttmo end 
raorwy 071 9372281, Rw 071 B37 2262. 


UAWCAN A CITY For Jura Hat of targes! 
wwton Of (lata tor sate trom £85,000. 

faank Hama & Co on 600 7000 


appointments 



FIELD SALES REPRESENTATIVE 

TATe arc currently «rekin 8 . highly motlwtcd tenacious 
V V tadtvidunk to jote our dassifced Reskkntla] Property Team 
as a Reid Sales Bcectuive. 

The successful candidate mn* have at feast 9 months Bdd sales 
expetiaioe goiiied witiiin a publishing eswironmenL 

If ^u would like the opportune lo danonstrore h,,* ^ 

««ro*fdlyAdmthtarofe.pW 



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FINANCIAL TIMES WEEKEND JUNE 4/JUNE S 1994 


WEEKEND FT XIX 


PROPERTY 




Cntfa RSH House at Hath Warabarough . . . 40-plus riewera fa 3fe weeks 
ariety and convenience 

make Hwinp«liiwi» jyip nlqr , 

f - It te a large county with 
masses to offer.. Garden- 
ing thrives.' So do fiflhtwg on the 
iima Test and Itchen and riding in 
the. New Forest . 

For sailors, there is Cowes Week. 

Winchester, the county town, , is 
.packed with history,, archaeology 
and education. And Jane Austen 
livedinChawton, near Alton. 

Transport links are excellent a is 
an easy journey to London by train 
or on the M3 mot o rw ay . And cross- 
Channel ferry services mean that a 
short break in France can happen 
any weekend, finances permitting. 

Hampshire homes, when priced 
sensibly, are selling fast U. 1994.-' 

Philip Gossage, of John d. Wood's - 
Lymington.. office, described it- as a- 
“hardening" market; with, many 
more He»i« than year. 

Many sales are on the invisible 
market, when an agent dangiiw a 
likely buyer before an owner who 
has ofteh thought ofselling - and 
might have asked agents what the 
house should fetch - but has never 
quite steeled himself to proceed. 

Now, he is faced by a buyer with 
cash who wants an answenPMIip 
Blanchard, of John D. Wood in Win- 
chester, agreed three such-under- 
thecomter sales in -a’ day recently,, 
all In the £350i000 range. 

At the top end of the market, 

Blanchard stresses how much it 
helps lor the VKidor to prepare the 
paporwoortt . (deeds, searches, etc) 
before marketing begins. Then, a 
price can .be agreed on a Thursday 
and contracts .exchanged the follow- 
ing Monday, as happened with. 

Upton Manor near Andover (guide 
price £1.5m). 

For Lady Soames's Castle Mill 


mmm 


For £153,000 . . . Westbrook Houss, fa the county town of Wincfcastar 


For E750JXX) . . . GoMgh Manor, near Alton, which i 




Where it pays to be quick 

Hampshire has everything for the would-be resident but homes can sell fast, says Gerald Cadogan 



For £1 -9Sm ... Stodhnm Park, an brnnctSataiy restored Regency house 




m 

£3 

0 0 1" 

FI 

F5 I® f5j 


Bl sS-™ 




, 1 ■ : ' .• 

rfi 




House at North Wamborough 
(offers over £809,000), with fishing 
on the river Whitewater, Tana Fox 
had more ihan 40 viewers and sev- 
eral offers in the 3% weeks it was 
on the market In the medium-price 
range. Hamptons reports that offers 
can appear in the first 24-48 hours 
of marketing. 

The northeastern part of Hamp- 
shire is particularly accessible, 
which makes Forge Cottage in Odi- 
ham >»nticmg at £120,000 on a 1,000- 
year lease that began in 1863, or 
Holly Tree Cottage in South Wam- 
borofrgh at £129,000. The agent for 
both is Bill & Morrison, which also 


is s alting Oats in the handsome 
Georgian Kingston Honse in Odt- 
ham High Street (now being 
restored) at £195,000 and £220,000. 

Rontons Farm at Rotherwick, 
near Basingstoke, is half-timbered 
and has a bam and a paddock 
(£425,000 from Lana Fox in Basing- 
stoke). Near Alton, Farrfngdon 
House is a substantial tum-of-the- 
century brick budding in four acres 
(from Hamptons in Alton, £325,000). 

mil Top, at Powntley Copse (HQ1 
& Morrison, £250,000). is a httle gem 
of the 1930s in white-painted brick. 
The copse was a development of 26 
gentlemen's cottages/weekend 


For £300^00 ... Havelock House 

retreats in 32 acres of wood; Hill 
Top has 5L6 of them and is the last 
honse in the wood. It makes an 
intriguing change fr o m the Tudor 
half-timbering and Georgian red 
brick so frequent in Hampshire. 

If your retreat must be in timber 
and thatch. Ivy Cottage in Wher- 
well, a village on the Test near 
Stockhridge, could be ideal (£140/100 
from John D. Wood in Winchester). 
But if yon want age, Goldgh Manor 
at East Tisted, near Alton, dates 
back to medieval times. Built of 
timber, brick and stone, it is named 
after the de Galley family (which is 
known from 1200), and Winchester 


For £ 395, 0 00 . . . Rookery Farm at Kingsley, near Alton. 


College owned it from 1469 to 1965. 
Price; £750,000 from SaviDs. 

Lane Fox's London office offers 
Lyss Place, with 217 acres near 
Petersfield, for £L5m. It has good 
Georgian rooms but needs some 
work. Nearby Stodham Park is an 
immaculately restored Regency 
house, rich in bedrooms and with 
an indoor swimming pool. It is set 
in 23 acres, which include a stretch 
of trout fishing on both banks of the 
river Bother. Price: £1.95m from 
SaviDs. 

The red brick Rookery Farm at 
Kingsley, near Alton, is cheaper at 
£395,000 (from Hfll & Morrison). A 


neighbouring wood belonging to the 
Woodland Trust (and listed as a Site 
of Special Scientific Interest) helps 
privacy. 

Fishermen and bird-watchers will 
opt for the Lower Itchen Fishery, 
three mil pw of trout fishing on th» 
river Itchen just one mile from 
Eastleig h airport, near Southamp- 
ton. The bailiff has noted more than 
150 types of bird. Knight Frank & 
Rutley is asking around £L05m for 
four lots as a whole, including a 
mill and mill pond. 

For sailors, Sally Point is a mod- 
em house at Ramble with its own 
mooring and splendid views over 


the river Ham hie ( £385,000 from 
Hamble Estate Agency or John D. 
Wood). They are also joint agents 
for Bailey Cottage - originally a 
barge-master’s house - at nearby 
Old Buxsledon (£185,000). 

Another property offered by John 
D. Wood (with Penyards) at Old 
Bursledon is 8 Grey la dyes, the cen- 
tre part of an 1800 manor house 
(price: £225, 000). Inland at Wick- 
ham, overlooking the village 
square, the same agents have Have- 
lock House, an unusually smart 
18th century red and blue brick 
property listed grade II* (£300,000). 

New on the market at Beaulieu is 
Blackbridge House, 1930s' Tudores- 
que with views down to the Beau- 
lieu river (from John D. Wood in 
Lymington for £450,000). On the east 
edge of the New Forest Oakapple 
Cottage at Bartley, near the end of 
the M27 motorway, is a four-bed- 
room thatched house (from Woolley 
& Wallis: £525,000). 

In Winchester itself, Westbrook 
House is a 15th-16th century timber- 
framed building in Chesil Street 
(from the Winchester offices of 
Hamptons or John D. Wood for 
£153,000). 

■ Further information: Hamble 
Estate Agency. Hamble (0703-455 
055): Hamptons. Alum (0420468 68) 
and Winchester (0962-842 030); HiU & 
Morrison, Odiham (0256-702 892); 
Knight Frank & Rutley, London 
(071-629 8171); Lane Fox, Basing- 
stoke (0256-474 647) and London 
(071-499 4875). 

Penyards, Fareham (0329844 812); 
SaviUs, Guildford (0483-576 551); 
John D. Wood, Lymington (0590877 
233) and Winchester (0962863 131); 
Woolley & Wallis, Fordingbridge 
(0425855 900). 


INTERNATIONAL PROPERTY 


GREECE 

"Villa Karapoliti" 

1.5 Hours from Athens 

Exclusive house on its own peninsula, spectacular water views, 
4 bedrooms,' 4 Italian-designed baths, imported German kitchen with 
latest appliances. 

Large stone-paved terrace, barbecue from France, 18m x 8m 
seawater pool, private, beach, double garages, champion-size tennis 
court, separate guest-house or staff, accommodation with bath & 
kitchen. 

The property (21,000 square-metres) allows for construction of 
3 additional houses with water views and privacy if so desired or a 
helipad. 

This is a rate opportunity to buy one of Greece's most luxurious 
summer houses situated on the mainland Peleponnesos, south of 
Athens. 

Owner is migrating to Australia. 

Private Sale. Price indication US$2 million. 

Will sell to highest bidder. 

• -- - - Inspection by appointment only 


Contact: Laxs or Anders Josephson 
Telephone Sweden : +46 8 782 3771 
Facsimile: +46 8 665 0809 


Unique French 
Wine Chateau 
FOR SALE 

A very rare opportunity to 
acquire an impressive 17th 
century castle in the heart of 
Premieres Cotes de Blaye, 
Bordeaux. Many beautiful 
interior and exterior details 
and decorations- The size and 
splendour of the castle offers 
scope for conversion to a 
variety of uses including Oats, 
conference centre or corporate 
training centre. 

The estate covers a total of 70 
hectares, whereof 60 are 
prime vineyards used for 
production of high grade 
quality wine. Full range of 
state-of-the-art production 
equipment/fadlities. 

For further details: 

Hoitug, Audon & Associates 
15 Kgs. Nytorv 
DK-1050 Copenhagen K 
Denmark 


CREATE A DREAM 
; IN RURAL ITALY 

' A boauft d roflectMii of deniable FARMHOUSES for RtxK-Man, Mina 
-TRIVATB ESTATE between CORTONA and HEIUXIIA. 
ownrr, ul'CASTELLO F>t RJSSCHIO tUfcr a (Ldl service to the 
tudun, u*rfuduiR afl tcftnl ttocu rraen iarion. ptwOTng pemm rion. deritfn. 

. imuvaduii wnh GUARANTEED FIXED PRICES, inunor 
Aw ana nR und Lrabcapmig. 

is* father faifcnivmKV dMRL pfcaac cwmci WnOpo. 

T*J 071 38* 5592 Aj PCWA *»■*= 071 386 5592 

CA5TBXAO Dt RESCHIO EXCLUSIVE PROPERTIES 


VHXA FOR SALE 
CASCAIS - PORTUGAL 

RxL ArdsL W8K ■_ _■ 
Bane 300 Lind 695 u ' 
Pool, Oanfe.4K.cobeadi,20K 
ni^wtetBgb!ay,3ktoCnadr - 
. CkacDaJi«W«i}aa.K.L<X)paldQ - 
Aten^4SAtiehJuzo,7»50Ciwii 
RucSSl 1490436 Teh 3511 4S7KW 


H SWISS ALPS 

UES DtABLERETS 
Aparuneati mdetartSs In typfcri 
S»!<ravttagBferhofldsyK&inveaiiMnt 
winter & summer. Skiing to SODQm. 

. Prints frOra-SF 250,000 (Ell&MOQ 
permission tor tarsiptera to buy. 
Load moneag# avaBatgfc 
Ring London on: 

Tel/Fax: 081-882 S818 


ISWITZERUID 


SOUTHBBH 8PAINL Country vttaa. 

«**• (threw as of cask la w* « m ; 
moat bswOM sn»s fat souttwn Spain 
txtxfen soeftn laroaat natara n w vaa 
>iemAiw80ew e 9M ^ WW^ 
t&L £8TATE 8-L Phaa tie AhrUwi 5, 
2B7A* Compots (Maiasa) Spain. 
Tt*» 52853968 Fan fSa) 325533G7 

OOMM’S-fiaMONE Bam FWonff»etoi 
SMsh Unury Watartronl £ OMWOUrM 
Homes, tean miioientmtoa No Fen . 
Contact MyR Cpraane ATMDA REALTY 
SAtES LTD TOl: 0»01-«7 478 M18 
FaxfOW-07341 8028 
UaUtOADON OSi Sot VaKMmma. 
P <8ct*0 H cflMta«t.«>acu. rmmarous 
LfitJafiM: MS 9820233. 


ALOAHV& Ountry MKta aflh tte Oatipit. 
tat FMoflM oee^ end buN your Hum 
hom Irt PortnsaL For details 
contact POfiTOQOA. Tec Ptwaga! coi)- 
82-311035 Fax (M1>«Kt41285 

■tltSCAMY. Monattey an Mtep, PmeegleuB 
Mretva mores raskiaoca wtti gaidan. AH 
modem coowntoncas 29&000 Starting. 
P«x:aeiyS7 WTO** Tot 081 6429210 

am - wnnongetf prepedM h French and 
Swbe Afap. Apts ■ IT 250JDOO *: dahta • 
BF SGOLBOW- « Own - FFUBteO. dnola 
linMMtarUd 081 G70 1770 
Q REECE Nw vflfan on Naxos Island h 
^adBbnNvaaga Oeaan vinm. Cad « Fb 
- uehWrCt21»7JM9W 


r m»e88> abaa f*» 

Lake Geneva & 
Mountain resorts 

tmnmi quaetr AMHTHB 
CHALET M MOWmeiK. VILLA . 

LES DUSLEREIS. LEY8W. OSTMP | 

CTWMiowa. eatnoil 

no Sft 20tnxa-Craditmi 
j REVACSuA. 

52. im at WMBtOHni GBEWL 2 

COTE D'AZUR - VOICE Specious 
n o wnod e vfa, 4 badoaim 2 beUmnina. 
senload pool wandaU itau. 15 inhe Mca 
SPOIL FFC IJInTet (UQ 0883 652B42 

FRENCH PROPERTY NEWS- FraaMonSHy 
Old. new and aid prop.. tagpl«oiuinn at 
ASfc tor your Ma COW nm 081-M2 tBDI . 

FRANCE, ANNECY LAKE VIEWS 
Savoyard vRB. 4 beds 2 btfBi NbapL kxl 
fan. 19 mBon FP. AAA Tat 0544 an 234 
FK 0644 388 BOO 

COSTA on. SOL PROP IW I ita MartxAa 
Officaa. For tofomtadon & Pdea M ring 
091 803 3761 enykitn FfccSGSB 

INTERNATIONAL PROPERTY TRIBUNE, 
nao property* aendea mapelna. Request 
fae 0*83 456254 Fax 0*89 484080 

MCE, FRANCE LUUtoUt4t>ed-3bftitrt 
- many axfcaa - tarrsce penerand u utasr - 
garage. Inquiries: SMtzariind TaVFax: 
(*1>81 586451 

LAKE COHO. ITALY Estate 1088 aqm 
covered - Paric nmnis, pool. uuasttmuM. 
Inquiries: Switzerland TbI/Fmc 

(«1)81 565*61 


MONTE-CARLO^ 

For rent in just 
completed de-luxe 
building, different 
apartments, 3 to 8 rooms, 
with cellar & parking 
space, nice view of 
Marina. 

AAGEDI 

7.9 Bd de) Maalms MC 9HXU Monaco 
V^Tel 33-MI 6S ftW Fax 33-93 501 942^ 


CARIBBEAN ESTATE 

MONTSERRAT 
BRITISH WEST INDIES 



"CAME LOT" fabulous 7.5 acre estate. Malta buildings 
with 5 bedroom suites. Roam for more. Elegant public 
rooms. Great Room with full bar, grand piano. Media 
Room with giant TV. Game Room. Formal and Informal 
Dining. Freshwater swimming pool. Completely 
furnished. Lovely gardens. Breathtaking views. 
Uninterruptible electric power. Perfect for a family 
treasure, corporate center, private clinic or small upscale 
hotel. Cannot be duplicated at asking price of $1,800,000 

Other Villas and Estates Available. Luxury rental villas. 
WEST INDIES REAL ESTATE, LTD. 

P.O.Box 366 
Plymouth, Montserrat 
Tel: 809-491-8666 Fax: 809-491-8668 
(Brochures on Properties and on Montserrat) 


A VIDEO ES AVAILABLE TO 
PREVIEW OUR PROPERTY 
NORTH OF MOISSAC IN THE 
TARN BT GARONNE. MAIN 
HOUSE, GUESTHOUSE, 
CARETAKERS COTTAGE (TO 
CONVERT), DOVECOTE. 2 
HUGE BARNS ALL IN QUERCY 
STONE WITH ROMAN TILED 
ROOFS. SWIMMING POOL 
WHB WATERFALL IN 
LANDSCAPED GARDENS, 
ADDITI ONAL W OODS, 
STUNNING VIEWS, ABOUT 3 
HECTARES PRICE £275000 
Tel: France 63952481 
Mr Jenkmson - Regansoa Haul 
82190 Bo<trg de Visa, France. 


Napa Valley's finest estate, nestled above Auberge do Sahril with > commanding 
300 degree view of the Valley, offers peace, solitude and a sense of complete 
security. A private winery, world-renowned gardens and approthnalely 18^000 
sqiL of unparalleled residences, share the warmth and permanence of a French 
county manor boose. The 40 acre estate includes the main residence, guest 
cottage, staff quarters, a garden honse 
complex, temns court, a 60 reflecting pool, 
and a en l > Bf mMl interest in an fl oienurfiiig 
vineyard. Fust time offered. 

MAYNE AND COMPANY 
2240 Jachsou Street 
San Francisco. CA 94115 

Contact: LINDA MAYNE 
Tel USA: 415-931-0900 
Fax USA: 415-931-0906 



CHANNEL ISLANDS 


LE MARCHE: 
Properties for Sale 

Campoduap b n restored hamlet of 
fifteen bouses standing witbin mows 
forty sue fytttp. wfeh pools sod touts 
coora. b is in (be buotifel Le Mazcfae 
rtffoa but Sureano id the feoddh of 

the Bfl MBBH. 

brochure telephone; 831 5568218. 


GUERNSEY’S 
LARGEST 
INDEPENDENT 
ESTATE AGENT 


>l'h:t‘tAI.!SI\t; / V f ) jV:.\ Map.kft 
I’Wiwa/T u wr,-!;.:/./.' Tn 
so\-n:-:wr.\Ts. 


Ifyonareconsideniig re-Iocatiun 
m offer a persteul approach 
and £R£E Hoosefinder Factfile 
and Colour Property brochure 
oa request. 

4 SOUT H ESP LANADE 
ST. FETES PmXlGUEHNS? 
TELfi 0481 714446 
FAX: 0481 7 J 38 U 


o 

Swoffers 

GUERNSEY: 

Our tax rates save your 
money -but our 
lifestyle gives you so 
much more, 

all within 1 hours flying 
time of London. 

For our colour 
"GUIDE TO LIVING 
IN GUERNSEY” 
contact Swoffers, 
Ann's Place, St Peter Port. 
Tel: 0481 711766. 
Fax: 0481 714291. 


C CONSIDER THESE FIVE FACTS\ 
THAT OFFER YOU 
AN EFFECTIVE WAY 
TO 

Capitalise on a 
Property Market 
that is on the 
move! 





* The FT HAS AN AUDIENCE of approxjmatley 
1 MILLION READERS IN 
160 COUNTRIES 

■ The FT is publsihed daily in five 
INTERNATIONAL CENTRES 

nt 87% of FT Readers are classified ABC1* 

•“ 32% of Weekend FT readers have 
PROPERTY AS AN INVESTMENT. - 
This is in addition to their main home.** 

•* The Weekend FT reader has 
AN AVERAGE INCOME OF 
£56,000 PER ANNUM** 

Our READERS INTEREST IN PROPERTY IS GENUINE, 
THEY ARE NOT IDLE ENQUIRES, 

THEY ARE BUYERS 

l 

TO ADVERTISE IN THIS SECTION, 

PLEASE CONTACT: Private Advertisers 

Sonya 

Helen Mayor Paul Cosgrove MacGregor 
071 873 3307 071 873 3252 071 873 4935 










XX WEEKEND FT 


FINANCIAL TIMES wkRKENP JUNE 4/JUNE 5 1994 


ROY MILES 

SUMMER FXHmri IDN 

A RETURN TO BEAUTY 



NOWON VIEW 


Also on show 

H.R.H. The PRINCE OF WALES 
Lithographs 

ROY MILES GALLERY 
29 Bruton Street W1 

Telophonc 071-LA 4747 Fax u71-4'»5 t'2.32 
Morula;, Friday 'Em - S.itisrJ.iv 'lam - loin 


An exqoitttc Adam period iaUd dresdag table. Ora 1780 
EsUMiiig h die GranenCT Haase Art A Antiques Ftir.9th-lfeh W 1994. Sand <7 



(FbieArttilii 

1-9 Burton Place London W1X7AD 
Tel: 071 629 5600 Fax; 071 629 2642 

GEORGE GRAHAM 
LONDON 

A striking and pull quarter 
repeating bracket dock 
signed 

Geo. Graham, London 
no. 678 

in ebony veneered case 
Circa 1725 


Hdgbt 15.75 indm 


COLLECTING 





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vr m 


' **?:;,*: 


Ludm Ptamro’s "Yodgraave”, «Mch b being offered by London dealer Richard Gram at Olyinpb 

Dealers face the 


month of truth 


T his is it the month 
that will decide for 
many of the nation's 
8,000 professional 
antique dealers If the long- 
awaited, and oft-predicted, 
revival in dgmanri is actually 
there - or whether they will 
have to struggle on, persuad- 
ing their bank managers they 
are worth supporting for 
■ another year. 

In June, London once again 
becomes - although briefly - 
the centre of the international 
art market Rich collectors and 
dealers arrive for the grand 
Grosvenor House Fair which, 
for 10 days horn Thursday, cel- 
ebrates its 60th anniversary. 

They take in, too, the impor- 
tant exhibitions staged simul- 
taneously by the top West End 
galleries, plus the major auc- 
tions. And they will surely pop 
along as well to Olympia 
where, for the next nine days, 
more than 400 dealers, mainly 
British but with an increasing 


number of foreign exhibitors, 
display the largest accumula- 
tion of vetted antiques seen 
annually in London. 

Around 40,000 people are 
expected at Olympia, a popular 
bun-fight where the largest 
London dealer In Old Masters, 
Richard Green, fines op along 
side provincial furniture deal- 
ers on their an nua l selling trip 
to London. Some will expect to 
notch up 40 per cent of their 
annual turnover there from the 
choice items they have salted 
away for the occasion. 

Opening day on Thursday 
got off to a starry start - Elton 
John, Andrew Lloyd Webber 
and Rowan Atkinson were all 
touting their cheque books. Of 
course Olympia Is too large - 
although Imagebase, a visual 
database which locates the 
stands offering the antiques In 
which you might have particu- 
lar interest, should ease aching 
feet Deaims love Olympia. One 
reason is* that, at around , 


OLYMPIA 

LONDON 


£15,000 a stand, it is half the 
price of Grosvenor House. But 
it really does have an aura of 
excitement despite the chaos. 

In good years, Grosvenor 
House dealers used to raid 
Olympia each day for fresh 
stock. It could just happen 
again in 1994, for there is a 
feeling that the revival in busi- 
ness must come soon. To help 
with transport, there Is a bus 
service between the two fairs. 

Grosvenor House has a very 
different atmosphere. The 
organisers have digested the 
fad: that its glitzy array, and 
sometimes exorbitant prices, 
have deterred both middle 
range collectors and informed 
browsers. They know also that 
the more international Maas- 
tricht fair in Mart*, has bad 
the edge in recent years. So, 
for its diamond jubilee, Gros- 
venar House has been given a 
new look 

The biggest change is quite 


the great works of art of the 
20th century - Picasso paint- 
ings, Matisse prints, art deco 
ceramics, abstract expression- 
ism even - can sow tie dis- 
played. Indeed, it is possible 
that the Dover Street Gallery 
will offer a painting by the 
still-shocking Allen Jones, cre- 
ator of sexist furniture. 

There will certainly be 1920s’ 
fonoiture on the Yves Mikas- 
loff stand; a 29309* bronze at 
Agnews (along with a freshen- 
tfae-market Lawrence portrait); 
an Ivon Hite hen at Spink; 
Matisse lithographs at WCharn 
Weston; and designs by Omar 
Ramsden and ClR. Ashbee at 
Nicholas Harris. 

It will take time for the 
change in stock to filter 
through: despite the arrival of 
a few foreign dealers, Gros- 
venor House remains the 
annual showcase for the cream 
of the British antiques trade 
and, especially, brown furni- 
ture dealers. But, over the next 
few years, younger and trot 
tiler collectors of the modem 
win have reason to add this 
fair to their Itinerary. 

A more immediate impact 
comes from a transformation 
in the fair’s appearance. 
Designer George Carter has 
created a classical environ- 
ment, with colonnades of Tus- 
can pilasters creating a mr^*** 1 * 
lode The height of the stands 
has been raised considerably 
so that more substantial 
antiques, like chandeliers and 
tapestries, can be displayed 
attractively. 

Dealers also are attempting 
to offer a wider range of stock. 
There will be fewer seven-fig- 
ure masterpieces and more 
four-figure collectables. Among 
the affordable hems are early 
needlework, at Witney 
Antiques; a Danish wine barrel 
at Jeremy Ltd; St Louis goblets 
at Mallett; and a pair of 
Regency painted children's 
chairs at Halcyon Days. 

In total contrast Is Newark, 
in Nottinghamshire, the big- 
gest antique and collectors' 
Hair in the world with up to 
4,000 stalls stretching over 86 
acres. It opens on Tuesday; 
and, although it might be only 
one step ahead of a superior 
boot safe, there is enough good 
furniture an display for it to be 
a magnet for continental deal- 
ers. 


Y es, there are too 
many fairs. But 
with dealers being 
forced by higher 
costs and lower revenues to 
close down their retail prem- 
ises - Lapada, the Association 
of Art and Antique Dealers, 
reckons that up to 10 per cent 
of its members have shut up 
shop in the past two years - 
Mrs. both specialist and gen- 
eral, have became a Ufefine for 
dealers now trading from 
home. At fairs, they can 
acquire new stock, meet exist- 
ing and new customers - and 
perhaps sell some antiques. 

As well as the big mixed | 


COLNAGHI 


OUIAAUU1UI 

in London: the Antiquarian 
Book Flair, at Grosvenor House 
for the first time, from June 30; 
and the International Ceramics 
Fair, at the Park Lane Hotel 
from June 10, 

While there has been a slight 
im pro vement in demand in the 
antiques trade over the past 
year, the recovery remains as 
elusive as that in house prices 
and the economy generally. If 
overall confidence Improves, so 
will antique buying. 

Dealers hope there is consid- 
erable pent-up demand; cer- 
tainly, there is a shortage of 
good items appearing on the 
market The travails at Lloyd's 
have released relatively few art 
works to date although, sadly, 
they have eliminated one 
mqjor source of buyers. 

S alerooms are showing 
dealers the way by 
looking overseas for 
new business. Of 
course, with vastly greater 
financial resources, it is easier 
for them to do so. This year, 
both Christie’s South Kensing- 
ton. and Bonhams - which con- 
centrate on the middle and 
lower ranges of the market - 
report an Increase in turnover 
of more than 20 per cent 
This comes partly from their 
success in marketing them- 
selves to foreign buyers - in 
Bonhams’ case, by forming a 
marketing relationship with 
auction houses in New York, 
Los Angeles and Vienna. 


bi new markets. Christie’s 
South Kensington has had 
great success with cameras - 
and corkscrews. Bonhams is 
offering Victorian Gothic on 
June 20 to coincide with foe 
big Pugin show at the Victoria 
& Albert Museum this month. 

In areas such as furniture 
and, to a lesser extent, pic- 
tures, there is no doubt that 
buyers now have the confi- 
dence to bid at auction rather 
than rely on the advice of deal- 
ers. This is a long-term prob- 
lem for the trade, which fairs 
go o nly some way to counter- 
ing. But stories about the 
demise of London as an inter- 
national art centre seem pre- 
mature. Leslie Waddington, 
one l ea di ng modern art dealer, 
might be threatening to close 
one of his galleries in Cork 
Street, London - but that 
would leave him with a couple 
of brace stffl trading happily. 

Indeed, three Important 
international dealers have just 
shown their faith In the future 
by opening up in London for 
the first time. Finarte, from 
Italy, is mounting a major 
show of the work of the surre- 
alist artist de Chirico in new 
premises in Mason's Yard; 
Johnnie Eskenazi, cousin of 
Giuseppe, is settling in Old 
Bond Street to trade In rugs, 
textiles and Oriental art; and 
Danny Katz gives London its 
first major specialist sculpture 
gallery, In the old Heim prem- 
ises in Jermyn Street. 


RICHARD GREEN 



Cornells de Heem (1631-1695) 

Still life of fruit with a pepper box, a wine glass and roses. 
Signed. Canvas: 15 3 /*x22 s /» in/40-5 x 57.2 cm 

The Grosvenor House Antiques Fair 
9th - 1 8th June 1994 
Stand No: 55 

33 New Bond Street, London W1Y 9HD 
Telephone: 07M99 55S3 Fax: 071-499 8509 
New York: 518-538 2060 

MEMBER OF THE SOCIETY OF LONDON ART DEALERS, BAOA ANDCINOA 


Oriental Art Gallery 

LIMITED 

The Grosvenor House Art & Antiques Fair, stand 77 


Rci 



Jan Van Huysum (1682- 1749), Flowers in a Basket on a marble Ledge; and Fruit, 
Nuts and Hollyhocks on a marble Ledge, both signed 'Jan van Huysitm', on pond, 
15 3 /4x 13in. (40 x 33cm.), a pair (2). Estimate: £500,000-700,000 Jor the pair. 


Important Old Master Pictures 

Auction: London. 8 July, 1994 

Viewing: 3-7 July, 1994 

Enquiries: Charles Beddington (07l) 389 2567 
Rachel Mauro (071) 389 2568 


Catalogues; (07l) 389 2820 (sales) 


8 King Street, Sc James’s, 
London SWIY 6QT 
Tel: (071) 839 9060 
Fax: (071) 389 2209 



CHRISTIE’S 



2-12 June 1994 

380 leading antique 
and fine art dealers 
from Britain, Europe 
and the United States 

Opening Times 

Thurs 2 June IT am -8pm 
Fri 3 June 11am-8pm 
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. Information 
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the t 1 ib Earl of Drogheda Oil on Canvas 48x28 Iks 

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DEREK HILL 

23th May - 17th June 
Monday - Friday 10am - 5-30 pm 


14 Old Bond Street London W1X4JL 

Telephone: 071 -491 7406 Pbonnfle 071-491 8831 


We are pleased.to 
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Betraying the Muse 

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Exhibition: Oriental Works of Art, 7th-24ih June 1994 
Catalogue available at £15 ( UK and Europe) 

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htaese porcelain takes 
pride of place at the sea- 
«mal Oriental art shows 
ta London this month. 
Even the British Museum presents 



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Ae. first public display 
of one Of -rias largest and finest pri- 
' rate holding of Chinese ceramics 
in the west 

Amassed during the last 40 years, 
■■. this continental collection, is 
remarkable for the variety, quality 
■' and .rarity of its pieces which range 
from Neolithic pottery and Ba n and 
* Tang dynasty tomb figures »«pd 
burial wares to Ming andQtag 
.Imperial porcelains (June 9-Septem- 
ber 9). 

. Bsfc e naz i has a noless sumptuous 
^ : ftast of mariset rarities In Its eshi- 
■ tuition of early blue and white (io 
' Clifford Street Wl, June 7-July 8). 

- From their. first large-scale manu- 
fa cture ta the 14th century, these 
hzxnrions white porcelains paint e d 
In nnderglaze cobalt blue have 
been highly prised in China and 
beyond. Perhaps no ceramic tradi? 
turn has been more widely imitated, 
or more endnrtagy popular. 

The Midd le East appears to have 
been the d estina t i on of a number of 


Rarities in blue and white 

Susan Moore samples the numerous wares of quality Chinese porcelain 


vessels. Forms are distinctly 
un-Chinese: there are Islamic 
emblems, even a Persian inscrip- 
tion pro claimin g a piece the prop- 
erty of one Alarng h- Shah, The aft"* 
turn, discovered in Damascus 30 
years ago, is a spectacular and 
densely decorated ndd-Mfh century 
. Tuan dynasty dish, 46cm wide, in 
the centra! medallion, reserved in 
white on a rich blue ground, are 
cranes and 'ducks in a lotas pond, 
wen observed and foil of life. 

Their Hveliness is matched by the 
dish’s snrfecfe: (me of the JoSgiifa 
Of handling blue and white is the 
way in which the impurities in the 
cobait produce a heaped mid piled 
effect ta the gia» pnd a v ar yin g 
intensity of blue. 

This unique piece is of museum 
quality and into a m us e um it may 
wen go - given that it was broken 
and repaired and even hair-Une 
cracks are not tolerated by the new 


hreed of avid Hong Kong collectors. 

The show's other tour deforce is 
not technically blue and white at 
SB, This large, deep Ming dynasty 
bowl of the Hongwn period 
(1868-88) is decorated with scroll- 
ing peonies in nnderglaze copper 
red, which firing has turned into 
the subtlest of pinks and greys. 
Dated 1340-1435, the 26 pieces bear 
£45,000*100,000 price tags. 

At S. Mar rfwmt & Son (120 Ken- 
sington Church Street, WB), the 
focus is cm toe great age of Mane de 
Chine - 1640-1710 - a much more 
particular taste. As this show dem- 
onstrates, however, the craftsmen 
of provincial Dehoa gave their 
glossy white wares an astonishing 
variety of expression. At one 
extreme stands a graceful and 
superbly modelled Guanyin or god- 
dess of mercy ih flowing robes. Dat- 
ing around 1640, and 38cm Ugh. 
the figure bears toe seal mark of 


the mysterious He Chanzoug, the 
moat illustrious name in Dehoa 
porcelain. At the other, a whistle in 
file form of a European gentleman 
in a tricorn hat seated astride a 
comically grinning tiger. The whole 
group is only 4.7cm high. Prices 
£200^30,000 (June 8-24). 

Early celadon porcelains from 
Korea, China and Japan are the del- 
icate fare at Jehanne de Biolley 
Oriental Art (29 Conduit Street, 
Wl, June 1-July 1). Prices £150- 
£20,000. Chinese, Korean and Japa- 
nese works of art are also at 
Spink's, 5-7 King Street, SWl, June 
1-17. Notable here is a pair of white 
jade lotus-shaped drinking cups 
that unusually bear the mark of 
the Qianlong emperor, and an 
understated white porcelain moon 
flask from late Cboson dynasty 
Korea. Prices £5.0004150400. 

The Oriental Art Gallery's wide- 
ranging exhibition inrinH^ iflwg 


and Qing caladons, blanc de Oitae 
and monochrome porcelains at 4 
Davies Street, Wl, June 7-24. Prices 
£950-256,000, with most objects 
under £1(MM)0. 

- With characteristic theatrical 
flourish, Christian Deydier of Ori- 
ental Bronzes Ltd unveils one 
extraordinary item for one evening 
only. This is a pair of stylised gold 
tigers dated to 8th century BC 
China, their slender, elongated bod- 
ies decorated with cinnabar stripes 
and formed out of gold strips 
wrapped and pinned around a 
wooden core. Professor Han Wei, 
an authority on ancient Chinese 
gold, has suggested that the 45cm 
long tiger mounts flanked a burial 

.pillow. Nothing quite like them is 
known in gold - nor any other gold 
artefact of comparable size end 
date. Deydier is asking around 
£L5m. 96 Mount Street, Wl. June 7, 
5JJO-8pm. 



Detail i 


i one of a pair te 8th century BC gold haers at Oriental Bronzes 


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©GREEN 



of the Gothic master 


Rosemary Hill on the eccentric 
pioneer that architecture forgot 



trfeft, <; I..- 


Altliimrv 1 jir 
I'm 


T here is hardly a town 
in Britain that would 
not look different 
today IfWelbyPugta, 
the architect who began the 
19th-century Gothic revival, 
had never lived. His influence 
spread wiffithe Empire. From 
Bombay to Melbourne, the 
Gothic schools, country 
houses, churtShES, railway sta- 
tions mri horse troughs that 
dot the landscape owe their 
inspiration to him. 

_In his work on the Palace of 
Wes tminst er he gave London 
one of its greatest landmarks. 
Big Ben. As .a theorist; be was 
the first designer to formulate 
the modernist principle, of 
“truth ; td materials*, and as a 
pioneer of fiatpack .fozniture 
his presencestffl hatmte Habi- 
tat today. 

Perhaps the rally Thing more 
remarkable - than his achieve- 
ments is the admit to. which 
they have been written out of 
art history. This' has something 
to do with Pugin, himself --He 
was not by taupenment op. dr* 


Aj.-t *\ 

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Design for b floriated crow, 1844 

cumstances a' conformist, fell- 
ing foul of every institution he 
came into contact with, includ- 
ing Oxford University and the 
Vatican. After his death, in 
1852, the Victorians preferred 
to forget him. 1 

He was bora, ta London, in 
1812, the son of a French 
emigre Illustrator and. his 
English wife. ThcPogi us str ug- 
gled to keepup genteel stan- 
dards, but money was always 
short Pugin got most of Ids 
education at home among the 
pupils in his fooler's drawing 
office and oh fondly visits to 
France. A precocious only 
cbfld, by toe ‘time he was 15 he 
had his first job - designing 
fondturefor Windsor Castle. It 
wasa debut that set the pace 
(iff toe. rest of hm short, taosbu- 
lent life. - ; r - 

During toe mxt six years he 
woikCd a soteie. prints' at 


Covent Garden and set op a 
furniture business that failed. 
He became a keen sailor, buy- 
ing his own boat ta which he 
Imported antiques from the 
Continent to sell in Soho. At 17 
he married for the first time, 
his wife dying to childbirt h 
within a year. By the time he 
was 21 he had been ship- 
wrecked bankrupted and wid- 
owed He derided to become an 
architect - 

In 1834 the old Palace of 
Westminster burned down, 
watched by a huge crowd that 
.. included Lord Melbourne, 
Turner and Pugin hhnarif It 
. waTfcft! a taming print ta his 
'career and in the history of 
. architecture. In the competi- 
, tion to 'rebuild Parliament 
Pugin acted as Charles Barry's 

“ghost", making the rt wra i ngR 

for what turned out to be the 
' 'winning design. 

Periodically for toe rest of 
his life- Pugin worked on the 
decorative details of toe palace. 
-■ He provided hundreds of 
- designs for waQpaper, carpets, 
flredogs, the monar ch's throne, 
from which toe Queen’s speech 
is still delivered, as well as the 
interior of the central lobby 
and the idea for Big Ben. But 
he had little respect for what is 
now his best-known work. He 
. resented Barry's mndifiratinns 
and, as his own ideas evolved, 
he found himself working ta a 
style he had outgrown. 

He had become a Roman 
Catholic - a serially disastrous 
move at that time - and it was 
his faith as much as his prac- 
tice as an architect that shaped 
his Ideas. They were laid out in 
his first book Contrasts in a 
series of illustrations compar- 
ing toe buildings of the 19th 
century with those of the mid- 
dle ages - to toe advantage of 
the latter. He argued that mod- 
em architecture was not only 
ugly but inhumane, reflecting 
a moral as well as an a e st het i c 
decline. 

Pugin spoke to a generation 
as troubled as our own about 
the moral aspects of architec- 
ture and city planning. His 
arguments struck home to a 
nation on toe brink of toe 
steam age. New buildings - 
factories, gas works and urban 
slums - were being run up 
without design. An architec- 
ture that was ethically and his- 
torically rooted was deeply 
attractive. Gothic, papular as a 
novelty style since toe 18th 
century, quickly became a 
principled, national school of 
architecture. 







yX 

V-T- i : 


Wifcy Pugta by JA Hubert; 1845, in tfia'Ptfacn of WNtnftutnr 


elderly inhabitants have 
grateful for the cloister walk 
that allows them to visit one 
another sheltered from rain 
and wind. These small, effi- 
cient houses are thn essence of 
the man, as much as the sump- 
tuousness of his great church 
of St Giles, Cheatfla 

By the late 18tts his practice 
had begun to decline. Other 
architects took up his ideas 
and won the commissions. 
Most of them were cheaper and 
all were easier to work with. 
Pugta would arrive on site ta 
the sailing dotoes he always 
wore. 'shout instructions at the 
workmen and disappear on the 
next train. He overspent bud- 
gets and was spectac ul a r ly 
tactless with his patrons. 

As a design theorist he 
began to be overtaken by John 
Raskin. On toe religious front, 
the Catholic revival was now 
led by Cardinal John Henry 
Newman who made heroic 
efforts to accommodate Pugin 
but could not understand his 
devotion to Gothic. Asked if he 
would build an oratory, Pugin 
told the cardinal he would 
rather design a mec hanic s' 

EBs swan song was the Medi- 
eval Court at the Great Exhibi- 
tion of 185 1, which persua- 
sively promoted Gothic as a 
domestic style. The next year, 
aged 40, he lapsed suddenly 
into insanity. He had con- 
tracted mercury poisoning 


- -r 


Brass dock, 1848; In tbs poises 

For 15 years Pugin worked at 
incredible speed on churches, 
cathedrals and private houses. 
He wrote more books, explor- 
ing the principles erf medieval 
design and applying them with 
radical originality to his own 
work. He employed no clerk - 
Td kill him ta a week" - ami 
fitted in his work for Barry 
when he could. But he always 
made time to d es ign any small 
thing,- a tea caddy for example, 
that his wife might want 

Pugin married three times 
and had eight children. An 
affectionate man for whom 
domestic life was central, he 
never lost sight of the human- 
ising jnfhwu-A of Gothic. The 
alms houses he designed ta 
Lincoln are still in use. For 
more than a century the 



Pogfn"s Royal Throne in the Hou9» of Lords, from which the Queen dafivars her speech 


from the eye baths. his doctors 
gave him for inflammaHnn 

Within six months he was 
dead. He had always been 
eccentric and intense, so his 
final fflness maria it easy to 
dismiss him as a madman. He 
was already forgotten when 
Gilbert Scott built the Albert 
MemoriaL Finding there was 
no provision for a statue of 


Pugin, Scott gallantly gave up 
the space reserved for his own. 

Pugin’s place ta history, 
however, continued to be 
denied. Reappraisal <rf his work 
began in this century with 
Kenneth Clark and has now 
led to an important exhibition 
at toe Victoria and Albert 
Museum. At last he can take 
up the position he deserves, 


alongside Tension and William 
Morris, in the history of 
En gKgh art and ideas. 

Rosemary Wl is working on 
a biography of Pugin to be path 
Hshed by Hamish Hamilton. 

Pugin: A Gothic Passion opens 
at toe V&A on June 15 from 
10.00-17.30 Tuesday to Sunday, 
and 12.00-17.30 Monday. It 


runs until September 1L 

Admission: £4.75 adult, 
£10£0 family rate, £3J>0 con- 
cessions. 

The catalogue by Paul Atter- 
bury and Clive Watawright, is 
published by Tale Univers i ty 
Press, price £45 doth, £19.95 
paperback, 320 pages. 

The exhibition is sponsored 
by Pearson. 


T£*--vft-VERY DMU»i PASSION. 
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I magine Elton John, 
George Michael, Shirley 
Bassey and Kate Bush 
sharing a stage and you 
get some idea of toe excite- 
ment frothing around the 
Albert Hall this week when 
the Four Great Bahians, GH- 
berto Gil, Gaetano Vetoso, Gal 
Costa anri Maria Bethflnia. col- 
lective^ gave the Bahian Festi- 
val ta London a celestial cli- 
max. 

The stagers all come from 
that Brazilian stale that looks 
towards Africa for its history 


Exiles go wild for the Bahian beat 


and culture, and although, to 
add some spectacle, the Man- 
gueira samba school from Rio 
were also on toe bill, it was 
very much a celebration of 
Bahian music. 

When political exiles in Lon- 
don ta 1969, (Si and Caetano 
became Rolling Stones group- 
ies, and once back in Brazil 
they added electric gu i t ars to 





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the traditional samba rhythms 
to create Tropicafem, the most 
distinctive Brazilian sound for 
the next 20 years. 

Ibis reu nion concert gave to 
a new generation of voluntary 
exiles music that was indi- 
rectly inspired by their tempo- 
rary home. 

They loved it. You expect 
Brazilians to stand up and 
samba at the tap of a drum; 
you do not expect them to 
know every word of every 
song. It is distinctive music. 
Unlike Spanish T^tin Ameri- 
can music, with its sensual 
brass obligatos, the musk: of 
Brazil is dram driven - very 
African. To outsiders the sing- 
ers often seem to sing across 


toe musicians: it has no easy 
appeal - it is a national rituaL 

The atmosphere was natu- 
rally relaxed, the singers 
appearing solo, to duet, to 
quartet, as the mood took 
than. GO was exuberant: Cae- 
tano wistful; Costa and 
Bethfioia full-throated. 

Romantic ballads and plan- 
gent songs of home nestled 
alongside rousing chants, in 


which the audience hurled 
back as echoes the Amazonian 
caws of the singers. There was 
no interval and toe bars stayed 
open. 

There was also the overpow- 
ering sight of Mangueira, toe 
Manchester United of the 
samba hands, sashaying its 
way on to the Albert Hall 
stage. First the percussionists, 
dressed Eke camp centurions; 


then the poseurs, arrayed like 
gigantic birds of paradise, par- 
ading plumage tails 15ft wide; 
finally the dancers, quivering 
every inch of their bodies. 

Once the balloons ha fl fallen; 
the audience fiafi danced itself 
dry; the flags had been flut- 
tered; fire fever had died down. 


the Four Bahians returned for 
their own encore. It was both a 
personal event yet also a 
national occasion, a vibrant 
nostalgia for home. It was no 
place for a foreigner to be. 

While the Rio carnival might 
now be a tourist attraction 
Bahda hugs its local identity 
and for one night the heart 
beat of Salvador, its capital, 
was in SWl. 

Antony Thomcroft 


w.R. Harvey & Co (antiques) ltd 

Summer Exhibition 

“A Cabinet R.eslmffle” 

Classic Furniture in Period Room Settings 1685-1830 
until June 25th 1994 

5 Old Bond Street, London Wl. Daily except Suodaya 
10am w 5 ,30pm. Enquiries 071-499 6385 





MIR 

AND SEMINAR 

10. 11. 12. 13 JUNE, 1994 „ 

THE PARK LANE HOTEL 

PICCADILLY. LONDON Vvt 

Frid.iy. Saturday. Sunday: IJam-Spm Monday: 3 l.jm-Tpi-n 
Liuj!i:ri«-*v Telephone: 071-734 5401 or h,i\: (17 1-404 4004 


FROM BALI 

One of Australia's 
leading Artists 

IANVANWBERING^N 

First London Exhibition 
1ST -BOTH JUNE 

Full colour catalogue available from 

COBBALLY STOURTON CONTEMPORARY ART 
2ACOBK STREET, Wl 

TEL: 071 734 8903 FAX: 071 734 890C 

CONTEMPOSABY AUSTRALIAN PAINTINGS, SCULPTURE 
AND ABORIGINAL ART. 



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fc* % 








XXn WEEKEND FT 


I have an affinity with Ruther- 
ford & Son apart from the 
title. The author, Gtiha Sow- 
erby, grew up within a stale's 
throw of where I, too, sport forma- 
tive years. This was Low Fell, 
Gateshead, which a note in (he 
National Theatre programme 
quaintly locates in Northumber- 
land. It is, in fact, in Durham. 

There were - and still are - Ruth- 
erfords all over the place, though 
probably rfimmishinp south of Dar- 
lington and north of Berwick. K. 
Rutherford Davis, who wrote the 
definitive book on the subject The 
Rutherfords in Britain: a History 
and Guide says that we were all 
dpygidgrf from a Scottish laird In 
the late 12th century. 

Githa Sowerby plainly knew her 
background. Just after the success- 


FINANCIAL TIMES WEEKE ND JUNE 4 /JUNE S 1994 


ARTS 


Theatre/Malcolm Rutherford 


A northern family makes its mark 


Ail opening of Rutherford & Son at 
the Royal Court in 1912, she told 
The Queen magazine) that her 
original title. The Master, was 
blocked by copyright, so she 
switched to Rutherford as one of the 
oldest and best known names In the 
worth she never had such a theatri- 
cal triumph again. The reference 
books, if they mention her at all, 
list her under her married wama of 
Mrs John Eendall. She died in 1970, 
having long since left the north-east 
for Chete** . then Kensington. 


Ms Sowerby. as she would now be 
called, thoroughly deserves this 
revival. Rutherford <ft San Is an 
excellent play, somewhat in the 
manner of Harley GfranviDe Barker, 
who had his successes at the Court 
a few years earlier, and of a kind 
much admired by Richard Eyre, the 
NTs director. In other words, it is a 
grown-up piece for grown-up people. 

A temptation nowadays may be to 
see it as early famfntem , and cer- 
tainly it Is a powerful plea against 
mate rion riu aHnn Historically, how- 


ever, t ha t is not entirely surprising. 
The jday coincided with the suffrag- 
ette movement, a body that might 
have achieved its aims much earlier 
had it not been for the outbreak of 
the first world war. 

The most fascinating aspect of 
Rutherford <ft Son is the insight into 
family business, the industrial revo- 
l u tio n and the implicit realisation 
that, even In 1912, Britain was in 
relative economic decline. 

The business is glass making. 
Sowerby had same knowledge of it 


because her father had inherited 
the family company in Gateshead. 
But glass needs new processes in 
order to remain competitive. There 
is an uncanny resemblance in Ruth- 
erford & Son to some of the prob- 
lems by ar Kf H w * r glflieft-wiakirig 
company, Pffldngton, in the 1950s. 
Without the new processes, the firm 
would he dead. 

Still, it is as drama, not history, 
that the play succeeds. Hktie Ifltch- 
uTi, who not pushed t h** 

feminist tine too far. True, the old 


Mr Rutherford who owns the glass 
works is a tyrant He has Uttte time 
for anything but work and practi- 
cally none at all for women, except 
as servants. He regards bis own 
win — one of them a curate ~ as 
useless. But it would be a one-di- 
mensional interpretation of the 
pjpre to suggest that this was alL 
Old Mr Rutherford, magisterially 
played by Bob Peck, has both 
thoughts and feelings. He knows 
tiinf the business is running down: 
when women, and perhaps even 


winiA subordinates, stand up to him, 
be responds. He does not like it, but 
he accepts reality. 

The two women who matter most 
are his daughter-in-law, Mary, and 
his daughter, Janet, played at the 
Cottesloe by Phoebe Nichads and 
Brid Brennan respectively. The 
daughter is prepared to walk out; 
the daughter-in-law Is prepared to 
stay, but only alter dictating her 
own terms. This is emancipation, 
and it is magnificently done. 

Whether you will take to the 
accents depends on how well you 
know the north-east Some of them 
sounded awry. Vkdd Mortimer's set 
catches superbly the frugality of the 
well-off northern businessman. 

In repertory, Cottesloe, (071) 928 
2252. 


In support 
of a summer 
institution 

William Packer finds this year's Royal Academy 
Summer Show a hotbed of controversy and talent 



.... < 'tr 


A visitor's chanca for (Sscovary: Maty Fodden’s Ban's Bax at the Academy 


I t really is time to stand 
up for the Royal Acade- 
my's annnai Summer 
Show. This year’s is the 
226th in an unbroken sequence 
that goes back to 1768, and 
without it the Academy would 
be nothing. 

Whatever else it does in the 
meantime with its splendid gal- 
leries. it remains in Its essence 
what it always was - a private 
society of artists come together 
for the purpose of showing the 
work of its members by right, 
and of others by invitation. 
That is entirely its affair. 
Throughout Its history it has 


been a natural source of con- 
troversy, stirring up squabbles 
within and resentment and 
misunderstanding without But 
then what else would we 
expect, or indeed want? This 
year is no exception and fair- 
ness requires only that our 
criticism should be levelled at 
what is presented in the light 
of what is possible, given the 
nature of the beast Some hope. 

I have seen every Summer 
Show since I960. 1 first success- 
fully submitted my own work 
in 1963, and have continued to 
do so at intervals, though not 
this year. E reviewed every one 








; : j v if?:." 

^ 1 1 £ ? 


- Mi 

iMt?pered 

As he closed the door behind him and stepped Into the street the 
bomb exploded. We collected Wm alter his discharge from hospital. A 
bomb can do a hit of damage in a narrow Belfast street where danger 
has become a way of life for over 25 years. 

We now took after him in our residential home. He will never leave 
it because of his fear of the outside. His brain connects the outside 
with pain, terror aid danger. He can now only look at the outside 
world from the safety of four wafls. 

The Ex-Services Mental Welfare Society has nearly 4,000 ex- 
Senrice men and women to look after aid there are more stffl on the 
waiting list Please do help. We have need of eveiy 
penny uipentfy 

fi? Ml They tried to ghre more tfeuiQieyrauhf 
l-wstcwm Plena give as much as yon can. 



[ EX-SERVICES MENTAL WELFARE SOCIETY 

pwt n*. »un wi nm mi. nwwaku. wirtMM iwma. T«j^niiai-5csaa 

J n Pibm W*noo^myi»Dnjbonto430ravri(KVS; n* an*** SOW® 

, armipmrAeanMaerdila 


□ fte^a«lawiH*>biU6wb-S«rACMMirt]iwa^iSoOgy 
Kjmc (BLOC* LETTERS! , 




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from 1970 to 1990, at which 
paint it seemed reasonable to 
pass the duty onto a colleague 
fix- a while. I am, yon might 
say, an old Academy hand. 

But I remember well the 
days when the Academy had 
s e emed to set its face against 
much of contemporary paint- 
ing and sculpture, alienating a 
whole generation of artists. 
And 1 recognise now just how 
much tiie Academy has re- 
newed Itself from within, 
reclaiming that central posi- 
tion in British art which it was 
always meant to bold. 

In resuming my own public 
response this year, I have to 
say that I have been shocked, 
not by the Summer Show 
Itself, but by the published vio- 
lence already visited upon it 
Certainly I hardly recognised 
the show described so brutally 
by at least two distinguished 
colleagues on other papers as 
the one I visited and enjoyed 
myself. 

OE course there are weak and 
even dreadful things among 
those on show, but than how 
could there not be in a miscel- 
laneous show of even 300, let 
alone some 1300 works? And 
how could any such show 
achieve formal or thematic 
coherency when the member 
artists alone, who have the 
right to show six of their 
works, are of such different 
kinds? To expect such virtue is 
to ndss the point 

There Is nothing like the 
Summer Show anywhere else 
in tiie world, and its critical 
importance lies in its very 
independence from critical 
dogma and curatorial ortho- 
doxy. 

I would defend it an those 
grounds even at its most mad- 
deningly Idiosyncratic and per- 
verse, but that is hardly the 
case today. What in fact it 
demonstrates to the world at 
large is that the Turner Prize 


ST. JOSEPHS 
HOSPICE 

MAKE ST. LONDON E8«A 
(Cb*yB4 Nft- 231323) 

Dear Anonymous friends. 
You <fid not wbb your gffis 
to be spoiled by human 
words of thanks. Their 
value geams in the untold 
relief you steady provide. 

We have honoured your 
trust, aod always wfL 


An old Acadwoy hand: Tam Coates’ portrait at Wtetam Packer In the smattar then normal Summer Show 


and the fomtr-hi Collection not- 
withstanding; awl all that goes 
with them of avant-garde 
orthodoxy and opportunism, 
there ranains a broad and rich 
stratum of professional artists 
hard at work putting paint on 
Canvas, waWng prints, rnnlring 
sculpture. 

Same of them may have had 
their own moment in the spot- 
light of critical approbation, 
which has now passed mu oth- 
ers may have long been disre- 
garded. Soane are abstract in 
their preocc upati on, some still 
content to draw upon the stim- 
ulus of the real and visible 
world. 

Collectively in their work 
they give the he to the facile 
assumption that such thing s of 
any quality are no longer done, 
that none of it Is worthy of the 
collections of the Tate or the 
honour of a British Council 
tour abroad, that none of it is 
even worth attention. 

And who could honestly say 
that the quality is not there, if 
only the visitor has the Inde- 
pendent curiosity to discover it 
on the walls of the Academy 
for himself? With some 400 
fewer works hung, this Sum- 
mer Show is smaller than nor- 
mal and, taking it roam by 
room, is clearly and effectively 
hung. The architecture, spread- 
ing into the Central Hall, is 
less constricted, and the sculp* 
tore, though still a problem, is 
better assimilated throughout 
than before and wen displayed 
in its particular concentration 
to the Lecture Room. 

Of particular works, I recom- 
mend the still-lifes of Gas 
Cummins and Elizabeth Black- 
adder; tiie etchings of Norman 
Ackroyd and Peter Freeth; the 
large abstracted watercolours 
of Norman Adams; two vast 
abstracts by Sandra Blow; the 
quiet Sussex parkscapes and 
greenhouses of Olwyn Bowey; 1 
Norman Blarney’s portrait of | 
his son - which is as fine a 
modem portrait as one could 

find. Portraits and life pain ti ng 

end drawings of true distinc- 
tion are thto cm the ground. 

Of tile non-members’ works, 

I was drawn to Chris 017*8 
Small Titanic print; to Noel 
Forster’s linear abstract; to 


three tiny still-lifes by John 
Maddison; to Stan Smith’s 
seated nude; to Sam Holly’s 
Paris bridge; to the cmtmaJter 
sculpture of Adrian Sorrell; to 
a portrait by Tom Coates. But 
it is invidious to go cm ... 
Peter Coker, Anthony Wbis- 


THE I00TH SEASON 






Royal 7Ubert Hall ^ FjT* 

15 July- 10 Septeml^t f ■ m y 

Telephone and personal ybf 
booking now open 071-589 82K 

Ticket shop open 9am - 9pm 
seven days a week 

Proms Quide on sale from 
booksellers and 
newsagents 


BiBi Cj 



Opera/Richard Fairman 

Intimate, yet 


A s one regular re- 
marked, “Isn’t it 
marvellous? They 
have increased the 
andieivM by 400, but there is 
still plenty of room to stretch 
out when you are having your 
picnic.” 

The doable success of the 
new opera house at Glynde- 
boume is to have expanded the 
scale of operations, white keep- 
ing the intimacy that has made 
the festival special. 

For an opera such as Yev- 
geny Onegin the new theatre is 
ideal Tchaikovsky’s romantic 
orchestra is able to till its 
lungs and breathe with a depth 
of sound that was not possible 
before, but the characters on 
stage still feel dose and inti- 
mate. Tchaikovsky thought 

that cr ucially im p ortant in this 

opera, because he was dealing 
with ordinary people and 
wanted them to seem as natu- 
ral and true to life as possible. 

As a producer, Graham Vide 
is the antithesis to that He 
sees all his operas in stylised 
terms and that goes for Yev- 
geny Onegin as well, even if it 
means viewing the opera, from 
the wrong end of tiie telescope. 

An empty box provides the 
basic pigment of Richard Hud- 
son’s designs, varied with 
doors opening on to other 
areas for some scenes - a 
visual style that would seem 
bare, if the blend of colours 
was not so beautifully subtle 
and the lighting so effective. 

Where Tchaikovsky could 
not help falling in love with his 
characters, Vick is always the 
sophisticated observer, watch- 
ing them with cold detach- 
ment One senses Kttte familial 
warmth on the Larins’ farm; 
the peasants' harvesting cho- 
rus becomes a formal song-and- 
dance routine. Later, when 
Onegin and Tatyana meet to 
discnisi her tetter, they sit on 
opposite sides of the stage, 
unable to spark any reaction 
off each other, even if it is 
hurt, anger or shame. 

Elena Prokina’s Tatyana is 
left to live to an icy emotional 
vacuum, though perhaps that 
is Vick’s point. This young 


spacious 


haw and wuham Bowyer - the 
226th Summer Show has much 
to show fix itsdt 

The Summer Exhibition: Royal 
Academy of Arts, Piccadilly 
Wl, until August 14: spon- 
sored by Guinness. 


R uss ian soprano, who made 
such a striking impression in 
the Royal Opera’s Katya Kabdr 
nooa earlier in the year, fits 
conscientiously into the pro- 
duction’s ideas. She keeps her 
Tatyana outwardly cool and 
composed, admitting not a 
furfrpr of love’s flame to show 
on the surface- Only her tta- 
gjingiy alive, soft singing (this 
is a first-rate voice) hints at 
the intensity inside. 

Her Onegin makes less 
impression than he might, 
although Wojciech Drabowicz 
effects a properly disdainful 
manner and has a pleasing lyr- 
ical baritone, lacking some- 
thing in ring and focus in the 
middle. 

Martin Thompson’s Lensky, 
who lustily chases his Olga 
rather than reciting poetry to 
her, has the soft head-tones the 
role requires, but does not use 
them to win much sympathy 
for the char acter. At his death 
one feds sorry for a wasted 
life, but not more. 

Louise Winter works hard at 
being a carefree, playful Olga. 
It is good to see Yvonne Min- 
ton back as Madam Larina and 
there is a restrained, not very 
incisively-sung Fiilppyevna 
from Ludmilla Filatova. Frode 
Olsen is a model of aristocratic 
dignity as Prince Gremin and 
sings his aria with distinction. 
By the final act Tatyana has 
left her rural home to marry 
him and join St Petersburg 
society: a world of formal pos- 
turing; in which Vick's sense 
of ironic detachment runs riot 

Nevertheless, it is to these 
final scores that the produc- 
tion starts to cook together, 
aided by -Andrew Davis whose 
conducting of Tchaikovsky is 
equally cool-headed and needs 
time to build up a head of emo- 
tional steam. 

Gtyndetourne has a reputa- 
tion as a company which fuses 
music and drama as one. What- 
ever reservations one might 
have of it, this production is at 
least all of a piece. 

Sponsored by Lehman 
Brothers. Fourteen farther 
performances ending July 24. 



AMLraLStnad. MRS 
SbmV Boulevard 


unmns. 


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FINANCIAL TIMES WEEKEND JUNE 4/JUNE 5 1994 


WEEKEND FT XXIII 




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Orahctetend. Introduced by Sue 
Barter. 11-00 Crete* first Tost 
Enfljand v NSW Zealand, live cover- 
age from Trent Bridge. 1.00 News. 
VOS Tenrfa; The French Open. 

Action from the woman’s Anal in 
Parts. 140 Cricket and Tomb. 

Times may vary. 

DOfvRMnBnbmd 
RflOraat The Embarkation. The flret 
in a series of programmes to he 
shown over tho next week under the 
heading D-Day Rsmambared. JR 

Dando, Brie Robson and John Tbsa 
visit Normandy and Port sm outh to 
commemorate SO years of peace 
slnoe tho ARes mustered some •• 
166,000 men from 14 countries to 
<Wv» Gorman forcae out of occupied 
Franca Sub oo qu o nt pr o g an n m 

may run fete. 

News. 

Regional News and Sport. 

PopQitiZ. 

The New Adventures of Super- 
man. The Man of Steel bees a b- 
gerftig death whBe Jimmy, Jack and 
Peny try to prove Lex Luthort 
involvement in the Daly Planet arson 
attack, and prawort him marrying 

Lots, find episode, staning Dean 
Cain, Tert Hatcher and John Shoe. 
Morocambe and Wee. Comptetkxi . 
of dasslc etetohes ty Brbn’s beet- 
loued cometfy (too, beginning with 
Sir John MBs 1 appearance to Ernie's 
prisoner of war drama, Escape ton 
State® St, and SHrtoy Bcnee/s 
mamoraMe ranenion of Smoke Oats 
bi Your Eyes. 

That's Uftrf 

News and Sport; Wosthor. 

«ne The Dream Team. Howard 
Zkrifs santimantaJ comedy about 
four mtamakched msntal pettenta tot 
loose bi New York aflar their mecS- 
cal escort Is kidnapped. Staring 
Mlchaei Keeton, Christophsr Lloyd. 
Peter Boyfa, Stephen Rest and Lor- 
rsine Bracoo (fflBB). 

Cricket; Rrat Teet England v New 
ZsatewL >fighfighta of the thkd day's 
ptey firam Trent Bridge, 
rim. D rerythlng You Always 
Wanted to Know About Sane {But 
Were AfrMd to Ask). Bawdy com- 
edy featuring seven sketches deal- 
ing with all things sexual. Written. . 
directed by and staThg Woody 
ABen, with Gens Wider and Anthony 
Quayte ff 972}. 


BBC2 


040 Open tMnreRy, 12.18 pm Hhas Ihe Hart la 
a womm staring Marione Dietrich. 

1-W* Tbm with Betjeman. The wok of 
the former Poet Laureate Who <fled 
In 1964. 

am TTw Sky at raght. The role of the 
Royal Observatory in Edkfourgh, 100 
years after ft was estaMshad. 

Shown prevtouely on BBC1. 

9^0 nbiE Destiy Rkfaa Agate. Oaseie 
ComedyWestomaboutamBd-man- 
nered sheriff sssignad to clean up a 
tefrim town, whose biggest prob- 
lem proves to be a sut&y saloon 
singer. Stas James Stewatt and 
Marlene Dietrich (1939). 

4.10 Crickets Rrat Teat Bigland v New 
Zealand. Lhre coverage of the toed 
day's final session at Trent Bridge. 

US Prague Heritage Ftxxi Gala Con- 
cert Fund-raising apectacxitor in the 

presence of Prince Charfos and 

President of the Czech RepuUte 
Vaclav Have! to promote the preser- 
vation and restoration of Prague's 
architectural heritage. Featuring the 
music of Smetana, Marat, Dvorak 
and Beethoven performed by the 
Prague Symphony Orchestra, con- 
d uc te d by Sir Georg Sow, with 
Dame KM Te Kanawa, Murray Pera- 
. hffl and Gabriete Benackova Intro- 
duced by James Naughtie from the 

Vtadbtov HeB of Piqgue Ceetie. 
SknuRaneoos broadcast with Radfo 
3. Subsequent pro^ammes may run 
late. 

SUSP Have 1 GkA New* for You. 


■UBS Hne Cut. The bizarre case of two 
teenagers who made a sutekfo pact 
after fetafej; to a record by British 
rock group Judas Priest One of 
them survived end Ms parents tear 
Sed a lawsuit aleging the btNtf 
actions were inspired by oubSminai 
commands contained h an abum 
track. David Van Taylor's film fea- 
tures interviews wfth merrfoere of the 
band and both terfiBas, as weft as 
original footage of the contiWBrstel 
court caso. 

1OJ10 Later with Jooto HoOand. 

11 JS Washington BaNod Closed Doom. 
President Monckton comes itedar 
increaa in g pressure over hfa shady 
dealings at home and abroad, and 
rasoivas to toppto CIA clfisf B0 Mar- 
On. 

1 JOQ Ctossu 


SATURDAY 


&00 QMTV. 035 Gimme 5 . I 130 The (IV Chart 

Show. 1200 pm Opening Shat. 

1.00 UN News; Weather. 

UH London Today; Weather. 

1.10 rauv BaakattMA. Alton Byrd Intro- 
duces the game of the week. 

lOO fotomatfaw a l Rugby Union. South 
Africa v England. Alaatasr Hignefl 
Introduces five coverage of the Rret 
Test from Pretoria 

4*40 UN News; Weather. 

100 London Today, Wart w . 

6 L 20 ITuitoyoL Genial questlonmasta Jim 
Bowen presidag, and guest Bobby 
George terows for chatty h another 
adUon of the darts-basad quiz. 

BUBO BQwatdL Mitch and his team hear 
their jobs may be in jeopardy after 
budget cutbacks lead to the closure 
of many LA beaches. 

<L 4 H Stars In Thsir ^as. Contestants 
taka Itw stage as George Formby, 
Madonna, Kenny Thomas, Joan 
Baax and Commttmants star Andrew 
Strong. 

T-ao The Brian Conley Show. 

0.1O YouVe Been Framed! 

0*40 UN ttows; Weather, 

MB London Weather. 

0-00 Fttic Narrow Martfn. An assistant 
PA and the tay witness to a gang- 
land siayfe^ are pusued by htt men 
on board a spooring train. Thriller, 
starring Gene H a ckm a n and Anno 
Archer (1890). 

1045 The Big Fight- UnM CadOTs 
Stave Robinson makes the fourth 
defence of hfe WBO Foathorwel^it 
We against 32-yeerold Rradcfy Cmz 
of the Dominican Republic. In Ms 
second attempt to win a world 
crown, Cruz comes Into the ring 
with a record of only five defeats - 
al on points - bi 53 fights. 

1140 FBm: Vongeance; The Story of 
Tony Cfcna Fact-based drama 
about a young man who vows 
revenge when his mother and father 
are brataly atan during a robbery. 
Brad Davla stars (TVM 1980): UN 


130 Too 1 of Duty. 

2.15 Get Stutted. 

toao Hie Ej ITM News Heodhws. 
3.1B New Mule. 

4.18 BPM. 

04) O Hot Wheels. 


CHANNEL4 


MO 4-Td on Waw. &tt Early Morning 1DJ00 

Ttaa Worid Sport. 11 JOO 3aMc Gamas. tZOO Sgn 

Or Newar w td v 1230 pm Bombty Chat 

11M F&rc Rawtrida. Escaped convfote 
terrorise a group of hoatagas at a 
remote stagecoach statloa Western, 
staring Tyrone Power and Susan 
Hayward (1850). 

2- 30 Racing foam Epsom. Including the 

&5Q Energizer Maiden HHea States, 
320 Tokyo Trophy Handicap, 4.10 
Energz e r Oaks, and the 4.40 Bier* 
gbta Handfoap Stakes. Introduced 
by Brou^i Scott. 

0-00 Brookakfo. 

MO iOgln to Reply. Vfowara’ opinions 
and Ideas about recent TV pro- 
grammes. 

7.00 A Week in PoStics. A review of next 
week's European elections with pro- 
fBos of throe cantidatea' campaigna 
Plus, a sdecdon of party a toet k w 
broadcasts from across Europe; 
New s Summary. 

BLOO The Sexual Imperative. Why some 
animals are monogamous, and what 
prompts the mates of certain spe- 
cies to fight to the death fora part- 
ner. 

SUM HYPO Blue. KaBy suspects Cherts 
Leer has been framed for hto mis- 
tress's matter, and Andy mates a 
fool of himself after attending a 
birthday party held by SyMa's 
father. UHan Fancy Is devastated by 
her husband’s reaction to her latest 
pregnancy. 

IILOO The Unpleasant World of Pom 

and Tefler. Another chance to enjoy 
wekd nusions by the American duo. 
With special guest Stephen Fry. 

1*130 ram: Mortal Passions. Bteck 
oomedy-thrtter, staring Kitete 
Bricfcson as a woman plotting the 
murder of husband Zach Gatfigan to 
gat her hands an his hoard of hid- 
den money (1969). 

12.10 Late Licence. 

12*0 Do You Remember the Bret Tima? 

1200 Herman's Head. 

1.20 Naked City. 

200 Boavls and Butt-Haad. 

238 The MwBa Brothers Uvo at Caro- 
den Lock. 

3- 30 True or Fate. 

445 Close. 


REGIONS 


nv anion as lomdom exgbpt at rm 


1230 Morin, Games and Videos. 1 JK togle 
Nona. 1.10 Angfo Sport SpedsL 500 Angta News 
and Sport &5S Angfla WeaHier. IMS Koplc The 
Chinatown Murders. 


1230 Morins, Gamas md Videos. 1 JK Border 
Nam. 1.10 Rodapart MO Sal ms Worid. 4L55 
Bonier News and Weather no Cartoon Tima. 
IMS Koplc The Chhanown Murders. 


1230 America’s Top 10 . UK Central News 1-10 
Maries, Gamas and Videos. 140 Rodoport 540 
Central News 5J0S Peps La P«w, 8d55 Local 
Weetlwr. IMS The Bridge at Remegen f!968) 


1230 Held. 1X0 Channel Otoy. &00 Channel 
News. SOS Puffin's nsftc*. 5.1 0 Cartoon Time. 
1U5 Shampoo. (1975) 


1230 Spaa. 106 Grampian Headbies 1.10 Tete- 
Hos. 140 AodapaL iu» Grampian Heodfcws SjOS 
Grampian Norn FMml BJK Grampian Wenttwr. 
1135 Kojak; The CWndown Murders. 


1230 Mgvlee, Games and Videos. 1 X 20 Granada 
News 1.10 Aodoport. 130 Sell the WcrVL 455 
Granada Ncwa 5JD0 Cafoon Wits. 1135 Ko)dc 
The Chfnauwn Murders. 

HTVS 

1230 World Cup Has of Fame. UK Httv News. 
1-10 SeH the Worid 1^0 Cartoon Time. MO HTV 
News. 5 jOS Cartoon Time. 255 HTV Waste*. 1135 
Koielc The Ch in a to wn Murders. 


1230 HakS. UK MerkSan Nows. MO MericBan 
News. 210 Cartoon Ttna 1135 Shampoo, pare) 


1290 Tho Champtena. 135 Scotland Today- 210 
Tatafioo. 440 Cartoon Tbm. 200 Scottond Today 
210 Cartoon Tina. 8155 Scottish Weather. 1130 
NB. 


1230 Mown, Games and Videos. 1X15 Tyne Toes 
Nome. 1.10 The Mul es Today. MS Zona 455 
Tyno Tea Saturday 210 Cartoon Tima. 1130 
DSBffi 


1230 Morias. Grams and Videos. 135 UTV Uvo 
Haws 1.10 WCW WoritMde Wrest**}. 200 UTV 
Urn News 205 Cartoon Tima. 255 UTV Uvns News 
1130 Wa of Man TT. 


1230 Mmfcs. Gamaa and Vldaoa. 135 Wsatooun- 
try News. 630 Westaxntry News. 1135 Kqjafc: 
The Ch i natown Murders. 


1230 Movies, Gamaa raid VUaoo. U05 Calendar 
News. 1.10 The Munatara Today. 135 Zona 435 
Calendar Nows. 210 Cartoon Tim*. 1130 Sweat 
Vffltam. (1880) 

S4C Whim am temanol 4 «»o*pC- 

7X20 Early Morning. 8130 B racwaat Oft IMd 200 
Racing Tho Mandno Una. 1230 Ruining the Hate 
1255 World Tends. 135 The Stow Trumpeter. 
135 Yh Fyw Or Brtfwyt DotooHeu 1804 3 j 46 
Racing from Epaom. 830 Brava New Worid. 730 
Nowyddon Nos Sadwm. 7.10 Lhgald Sgwar. 735 
Ccfn Qwtad. BjOS Plgkin Y Dytf± Bataddfod Yr 
Ufdd 1804 


SUNDAY 


BBC1 


BBC2 


LWT 


CHANNEL4 



; 730 Johnson and Fiianda. 740 Ptaydsys. 200 
_ Blood end Horny. 218 Breakfast wtti RraOt 215 
'Sea. Herat 



D Dey.Homainbarad. Tho Drum- 
hood Senrtoo - Departure, foBcrwad 
aft 12.15 by. Ftafflte Review. Tho 
- -Queen,- Prtedent dnton aid other 
heads of Mote Jain more lhan 50,000 
veteranondtMrfamBmtocom- 

memoretetoe 1W4 departure ofthe 
Itoeoufon force wtfich set out to free 
Europe fronrCkman oocppefloi i ' ’ 
Subeerata of p K apiammsag may rttn 
• • -r-toliL.?.": • 

140 New Quromary. 

145 CuatQidara 
240 D-Day Remerabered. 

The Airborne Aesra* Live coverage 
from Normandy as more than 1J200 
British, Ttefah and Canadian pern- 
troopere coremomorate the rote 
pktyiad by akbaroe forces an D-Day. 
280 ftewsl Comrnoroonrtian at Sm 
440 EratEmiiis, 

CIO Cartoons. ' 

-080 Maata ch at Ifoaral Democrat preai- 
dent Chartes Kennedy «nd chef 
Roviiter Leigh judge the cuflnaty 
sfforts of contestants from Chlng- 
ford and London. 

BXW H o n wl Wea th er. 

238 SongBof Prelaw ftan Rhodes Jofos 
tho aggregation at St Thomas' 
Cattiedh^ ln Portsmouth on tho ova 
of tha 60th aortoersaty of D-Day. 
730 Last ot-lha Summer White 
730 Pfcas dbaknfee. John Cteee ploys 
a headmaster obsess e d with puno- 
toaHty whoso convention trip turns 
into a rate jgkknLtkm. Ocrnedy, 
vyfth ASaonSteadmen (1886). 

200 New n isi W a ath e r . 

218 D-Day Remembered 
Harare M4, New aortas. Sue Lrawleyb 
Joined by BBC coneeponctants to 
present the news of 50 yeers ago 89 
if it were hopper to g today. 

280 TUrnteglhe TUa. CharissWheetar. 
a Ncrmaoc^r veteran and the former 

tiisif* llfa-l.l.i . j..., r _-i inji _ T_n_ I_i_ _| 

ESOLr WOSnington CaTBapOreiWR, 
offers a personal perspective on the 

fret 24 hours oMbalancBngs. 

1230 A fa dgi RskL Corned/ drama, 
atoning St Alec Gcdnrtoos and Loo 
MeKaro as Worid War TV« veterans 
wtoo sat out to visit the graves of fet- 
fow eehrioeraen b) Normandy. 

HUM D-Day Remembered. Wghftghts of 
tode/s commemorative events, 
irtroduced by John Tusa. 

1240 fl al at ft ra L o a aee. Preacher Michael 
. Fass travels to France to vtafe toe 
grew o( the war hero tether be 
never met ' 

130 Vaether. . . 

14MB CfOMb - 


215 Open University. 210 HdrSoy Foods Bb«L 

285 Spaoavets. 240 FtaveTs Araerlcai Tate. 

1035 Tho Movie Gama. 1030 Ban ML 1035 

CrfctaC Ftat Taat 

1280 Smdtal te pda to nd. Introduced by 
Sue Barkar. 1235 Cricket: England v 
. New Zealand. Further five coverage 
of the Ffrst Test 1.05 Goto The Brit- 
ish Amateur Champtanshfos. 1.15 
Motor Sport The BriUsh Touring Car 
Champtorahipi 1-40 Cricket S40 
Cricket and Tennis: The French 
Open. The Man's Hnai from parte. 

Urnes .may vary. Subsequent pro- - - 

grammes may ran hte. 

7 JOO The Money Pragrnm David 

- Srahar toteBti gntns why tha man- 
agomont and jnstaUrtJon of Informa- 
tion technology Is so difficult, and 
examinee recent efiaastroua conv 
puta projects costing mBons of 
pounds. 

740 Six Go to Emop 2 New series. Six 
ordinary people from Manchester 
investi ga te what belonging to the 
Bicp«wi Urion means to real 
terms, taking to Teddy Taylor MP 

. . and fbrmar Prime Minister Sir 

Edward Heath about the power 
wielded by Brossete and how Britan 
benefits from membership. 

210 Watacgata. The final programme of 
the series gives an acoount of how 
the Informrtion contained In secret 
Oval Office tapes finally foroad Pros- 

- Went Nboon to resign - to spite of 
his protests, and tha opposition of 
key senators. 

.. 200 John SeeatoW UMyStorfaa. 
Married TV show hosts dovbe an 
Ingenious plan to boost their ratings. 

280 Movte dr oote. Ai«t Cox Introduces 
tonights ffirn. 

240 FBne Coogen’a BhriL Cfint East- 
wood plays an Arizona sheriff who 
antagonises the NYPD by ompfoylng 
WBd West methods to recapture an 
escaped kffler in toe dty. Adventure, 
also atoning Lee J. Cobb, Don 
Stroud and Susan Ctark (1968). 

114)0 Motriodraowi Introduction to 
tonight's second Km. 

11.10 FBnc The Narrow Margin. A lough 
cap fights a deaefly running battle 
with underworid hit men whfle trying 
to ensure a gangster's widow teatf- 
ttos to Irort rt the Grand Jury. Thrt- 
ter, with Charles McGraw (1952). 

1330 Cricket Ffrst Teat Engtand v New 

. Zealand. t-figMghts of the fourih 
day's play from Trent Bridge. 

1.00 Com. 


530 QMTV. 285 The Uteri Hobo. 1200 IHtay 
Commemoration wrtlh St Harry Sroombft 

1 JDO UN tec Weather. 

IjOS London Weather. 

- 1.10 The Judy B«| p i Debate. Dtscue- 
aton covering burtng moral and 
. pofifcrt issues of the day. 

200 tetem a tion a l Rugby Urion. Hgh- 
Hghts of the w e a l r a nd’s Test 
matxtoes involving England. Scotland 
and Ireland 

• - 200 tote ma tte m rf Foatbafc Ireland v - - 
Czechoslovakia In Dubfin. 

210 London Tonight; Weather. 

230 UN New s; Wwather. 

280 D-Day Remembered. HgMtfrts of 
toe weekend's commemoration ca^ 
emontas, when Portsmouth, historic 
home of toe British Navy, pMyed 
host to monorehs, presidents, 
statesmen aid wartime heroes. The 
Qu ota , John Major and heads of 
state from toe ABed nations Joined 
D-Day veterans at a series of events 
cul mi nat in g to their dapartae In a 
fiotifia of warships, merchant vessels 
and the royal yacht Britannia across 
the En&ah Channel to France far 
tomorrow's ceremonte in Nor- 
mandy. 

280 Through the Keyhole. Sr David 
Frost Invites Nina Myetaw, Chris 
Tarrant and Liz Hobbs to guess toe 
mystery home owners. 

74)0 Mother's Ruin. 

780 Surprise! Surprise! 

280 CadfaaL The medtevai sleuth inves- 
tigates when a goldsmith is almost 
kffied during a robbery - and finds 
WaftwcJuo in toa mouto of a 
corpss. Roy Banacfough guest 


1200 

1080 

1240 

1240 

1140 

1210 

1240 

1.10 

180 


2O0 Fta Polar. French thrOer, starring 
Jean-Francob Bahnar (1982). 

480 Snootoar Tho European La agim 


SpRttng image. 

UN News; Weather. 

Loodon Weather. 

D-Dey: The Shortest Day. 

The London Progrsmra 2 

Sail ttie World. News and action 
from the finish Ina ta Southampton. 
You’re Booked) 

The Restaurant Show. 

Cue the Music; ITN News Head- 


210 Early Mamins. 245 The Odyssey. 1215 
Grand by the Bat. 1045 FteMda 1145 Ute 
Home on the PraMs. 1848 pm Surf Potatoes. 

1.10 FBm: Foroitpi Correspondent 

Alfred Hitchcock's classic espionage 
toritar about an American reporter 
caught up with Nazi spies In Europe. 
Joel McCraa stem (1940). 

280 NSrtit Mai. Film from 1936 about 
the overnight postal service. 

880 Brifiah Team Tennis. National Junior 
champion James Fok of Matchpoint 
- ■■■ — Bnxtiewfi faces Royal Berkshire’s - 
Danny Sapsford In the flnaL 

4 8S Non Summary. 

480 Tha Laat Show on Earth. Kanneto 
Branagh hoste as i nte rnational 
celebrities Join together to spotlght 
the pfight of endangered spades 
around toe worid. Music by Bton 
John, Sad and Peter GabrisL Previ- 
oudy shown an nv. 

880 Tha Cosby Shaw. 

74)0 Encounters: Matnopofis. Report on 
London's states as the toast energy- 
efficient dty to Europe, as tha capi- 
ta plays host to the UN's World 
Environment Day, asking if rival 
urban businesses should oo-operate 
to save resources instead of com- 
peting wfth one another for profit 

200 Speak OuL The facts behind home- 
lessness. Pfus, Sandra Young high- 
fights the case of her brother, who 
dad whfie being transported to 
prison by a private security firm. And 
8 ue Harwood reports on hsr fight 
with a oouncfl which add her a 
house condemned aa "unsafe". 
Presented by Anna Soubry and Mur- 
ray Bofiand. 

200 FBm: WaBmbouL A young brother 
and stater, stranded In the Australian 
(Xitback after their father's suicide, 
are rescued by an Aborigine. Adven- 
ture, with Jemy Aflutter (1970}. 

10J59 International Racing from 

Chantfly. The French Derby, intro- 
duced by Brough Scott 

1180 tslamfo Co n ver sat ions. Dr Haesan 
TurabJ, a leading figure in the Suda- 
nese Moslem stete, outfines hfa 
views on the ideal tetanic govern- 
ment 

1200 Rim: Diary for My Loves. 

Hungarian drama about an 18-year- 
otd student (Zsuzsa CzInkoczQ 
struggling to fulfil her personal goals 
whfle facing up to Bfo In Eastern 
Europe (1987)JEngfiah subtitles}. 

200 Ctesa 


REGIONS 


rrv Masons as lmdoh m e w r at im 


0l25 Tho Now Scodbf Doo Maries. 200 World 
Gup Heroes and VIMns 430 Vifiah You Were 
Hero? 430 Oouitrywida. 530 Angle News on 
Surety 1040 Angfe Weather. 


225 The New Scooby Doo Movtos 230 Scotsport 
Rugby SpeclaL 400 Rocksport 215 C or onation 
Snoot 215 Border News. 1145 Prisoner Cefl 
Slock H. 

cornuu 

Sl 25 The New Scotty Doo Moriee. 200 It's Your 
Shout. 238 Take 15. £30 Grattartng Tfmo. 530 
Heart of tho Cooty. 530 Zoo LHe wtti Jock 
Hama. 4.15 MBmationri Rugby Union. 218 Cen- 
tral News 1145 Maanee Cel Block H. 

CHJU50L 

035 The Now Scooby Doo Movias. 530 Safi the 
World. 330 Windsor IntomeOond Horae Trials. 430 
Wish You Wars Hors? 200 Cornby Ways. 210 
Chenrwl Hews. 1145 The Rood to D-Day. 


225 The New Scooby Doo Modes. 230 Sootaport 
Rugby apod a. 430 Sefl toe World. 430 Coutoy 
Wsye. 445 Movfara, Games end Videos. 218 
□tanptan HradUnee. 1040 Grampian Weather. 
1148 Prisoner: Cdi Block H. 

OctAHADA: 

035 The New Scooby Doo Maries. 135 Grvnda 
weather. 330 Stuntmaatora. 345 Where Seagufia 
Dora. 415 Corona ti on Street 215 Grenada News 
11.48 Prisoner: CoD Block K 

Km 

225 The New Scooby Doo Moriee. 530 HIV 
Newsweek. 330 Hglwty to Heaven. 450 Journey- 
man. 530 Bettomarr'a West Country. 215 HTV 
Nows- 1040 HTV Weather. 1145 Prisoner CM 
Block H. 

HTV Ha as tflV ucapb 

530 IMd Bataddfod 84. 430 Cartoon Tima. 415 
time 02 445 Reedy Money. 


225 The New Soooby Doo Movies. 330 Sal toe 
World. 350 Windsor International Horae Trials. 430 
Wtah You Ware Here 1 ? 530 Country ways, 210 
Meridian News. 1146 The Road to D-Oey. 
SCOTTISH: 

226 The New Scooby Doo Moriee. 230 Sootaport 
Rugby SpedsL 430 Cartoon. 215 Father Dowteg 
bweaUgates. 215 Scotland Today 230 Scottish 
Passport. 1040 Scottish Weather. 1045 Don’t 
Look Down. 1130 D-tty: Tha Shortest Day. 


225 77m New Scooby Doo Movies. 200 Cany On 
CnJstng. (19625 430 Tyna Tees Wedtend. 1040 
Local Weather. H4SQuizM0hL 


225 The New Scooby Doo Movhra. 330 SM toe 
Worid. 330 Wish You Were Hera? 400 Poke She. 
410 GJanroo. 440 Back to toe Beaches. 210 
Witness. 215 UTV Live Early Evening News 1040 
UTV Lhre News 1148 Mr CombaL 


226 The New Scooby Doo Movies. 330 Sal toe 
Worid. 330 Red AnwaOw America. 430 Btaom- 
Ing Marvetious. 500 WOatcounby News Special. 
1145 Prisoner Cefl Block H. 


229 The New Scooby Doo Moriee. 330 Cany On 
Qrriatng. (1962) 450 Catonder News and Weather 
1040 Local WSather. 1145 Cute Mght 


RADIO 


SATURDAY 


SUNDAY 


200 3i*h BraoL 335 Brian 
Matthew. 1030 JutH Spier*. 
1200 Hayes on Stenty- 130 
Tha Newt Hoddgneo. 200 Tlw 
Golden Deya of Rote. 330 . 
Ronnie HBtott. 430 Mr 
Sunshine. 5.00 Nick 
Brarscfoughi 2QD CM BHtW 
40th Aminraacy Concert. 730 -' 
Ctnene 2 730D-fty Pto* 52 
230 oevta Jacobs. 1000 The 
Aits Proo rei wa 4 l2Xg Roreito 
Htton. i.oo -Jon Briogra 400 
Suhtt BonoL. . 


1130 Muadoon In Ansrica. 
Christopher Cock tafics to poet 
Pout kUdoorv 
1f35knpraeilan». Brian • 
Morton meraa saxophonist 
Ban Astar. 1245 Close. 


230 Open I 
Thnuon U* 


RAOW3 

i Urfvarafiy: Laomkig 
i Ufa 285 Werihrr. 
7X» Record Review. 

200 BiAOtagsUpsy. 

1215 Record fla te si . 

1200 fipMt cf tot-Age. 

,135 Poetry ta Action. New. , 
eertw. Verse entos Asms of 


1.15 The Critoto France, ; 
200 GfoSot Afr’tn tfood time. 
5tW iaa fto cora R a rynras 
Wth tSooffreySmBh. 
■WfiMHtelMtoM, - 
Rrinerotogy and magio In 

DBChI ■ 

229 Prague Hsritaip FUnd - ■ 
atirConawL.&Mtorto. 

MsaaDycrtK Bsrihaurav 

gwtemeotebroteMMKraito . 

AaOU B sis H tyw. 

O fisn bec a ’A ma eractapraetto, 

teghfiratk 


HM3 RADIO 4 
200 News. 

210 The Framing Week. 
eWPraywtortftaDey. 

7 J» Tarty. - 

MONltn. 

208 Sport on 4 
230 Breetauray. 

1030 Loom Ends. 

1130 ffk fitaMng Fames. 
European pisum 
1130 0 -W) Tart Welch SpeCU. 
lUOfiHOBaapMa. 
IZOopAMMtyBox. 
USSiFM Itai Sorry I Hnrarrt 
aCtus. 

LOO (FU) News. 

L10 (fhfi Any Questional 

200 (FM) Any Answers? 

071-6804444. PfNMrin 
responae pfo g ramma. 

200 (LW) Test Mata) SpedsL 
830 (FM) Ptyhwra* Angst 
fnoo. By Bruce Stewart, 

430 fVfl Kraft Htanty- 
430 (FtiQ Schnee Now. 

200 (FM) FBa an 4 
040 ^ 4 ) The tereTObn 

200 m News ind Sport*. 

430 (LW) Test Match Spedtd. 
535(FI4 WaekereteflL 

260 ffkfi Tha lodrar Room. 

730 KsMdoeeope Feature. 
740 SraurdsyNfoM Theatre: 


Rood to Nonrrantfy. By Douolas 
LMngatonSi 

SlZO Music tn Mnd. 

030 Tan to Ten. 
lOOONewa. ' 

1215 TOvta T*«t Match. 

1245 To Be a BumpMn. 
St ra nge tou ts about toa Fans. 
1130 The Tingle Factor. Tim 
Rica's favourite musks! 
momenta. 

1130 Henry Normal’s 
Cncyctopserin Poetica. 

1200 News. 

1233 Shtoptag FcreeaaL 
1243 5FM) C1o». 

1243 2W) Ae Worid Barrico. 


BBC RADIO 0 UVC 

ex» Duty Tackle. 

030 The BreaMeet Pngnsuna. 
330 Waaitand wffh Kantoev 

■le WTVuW- 

1135 $p«cM Atagrenant 
1 130 Crinu Desk. 

1200 MUty Bdtion. 

12.10 SpartKsB. 

134 Sprat an Fha 
BJWStx-O-Stx. 

735 Saturday Edtaorv 
235 Out Tfto Week. . 
fOOSThsTtoranrart. 

1130 NUN Ben. 

12 XH Attar Hass. 

200 Up AD Mgrt 


world snvm 

BBC for Europe sen to 
reoetod In we to em Rtsops 
on MatOuiw Wave 540 KHZ 


(•ten) at those tones BSD 

830 Moroenmagazlii. S30 
Europe Totty. 730 News. 7.15 
The World Today. 730 
Meridian. 200 News. 218 
WraregtidaL 225 Book Chotea. 
830 People end PoeOca. 200 
News. 938 Words of Fatih. 
215 A Joey Goad Show, taoo 
Nows end Business Report 
1215 Worid Brief. 1030 

Development 94 1245 Sports, 
1130 Printer's DeriL 11.15 
Letter tram America. 1130 
BBC Engfiah. 11.45 
Mltugsmsgizin. - 12.00 
Newadeek. 1230 MerkSan. 
130 New. 130 Words of 
Fflith. 1.15 Mtdtieadc 2 145 
8port4 200 Newahour. 200 
Sportsworid. 43D Worid News. 
415 BBC Engfoh. 430 Haute 
AkturiL 200 Neura. 215 
Sportawortd. 830 BBC Etyhh. 
230 Haute AkturiL 730 News 
and fariues In Garmon. 8u00 
News: The vtiago whan time 
stands sttiL 840 Front the 
Weeklies. 030 News. 200 
Words of Faith. 9.15 
OevrioprtMrtt 84, 290 Maridan. 
1030 Nowohora. 1130 World 
News. 1135 Words of Frith. 
11.10 Book Chotea 11.15 Jazz 
for toa Aridng. 1145 Sports. 
1230 NevsderiL 1230 The 
Mutictante Muridan. 130 
Worid and Brffoh Naws 1.10 
Good Books 130 The John 
Dunn Show. 200 New*; Play of 
the Waak: Raring Demos 330 
NewraJaalc. 230 Fean Can 
Uvs 400 Nrandaak. 430 BBC 
Engfish. 445 NeM «nd Press 
Review in Gamns 


BBC RADIO 2 
730 Don Meetees 235 
Mchari AspeL KL30 Hayea on 
Sunday. 1230 Desmond 
Carrington. 230 Benny Green. 
330 Nan OriL 430 Serenade 
in Brass. 430 Stag Soomtring 
StapiB- 530 D-Dey Normandy. 
730 Richard Baker. 830 
Suxty Half Hour. 030 Nan 
Katth. 1030 Britiafa Cinema's 
Flmnst Hour. 1235 Stave 
Madden. 330 Alaar Lestar. 


BBC RADIOS 

830 Opta IHwotiy: American 
Oorweraraioira. 255 Wtatoer. 
730 Seared and Profane. 
FtarceS, Geoffrey Bush. 
Srim-Saara, wood, Roger. 

200 Brian Kqrti tamty 
Marring, Howard Fergreon, 
Montererri, Mozart, Faue rar 
Gtangar. Walton arr Pabner. 
Handel Webor. Borodta. Driks 
air Forty. Tetri mn. Parry, 
Prokofiev. 

12.15 Music Mattara. 

130 Tha Sraxty Concert. 

230 Bacb tatamationri 
FeathsL 

413 Beethoven: Mtaa 
Briomnta. 

245 Mridng Waves. VWh writer 
JLP. Dontany. 

530 Mariana Upuvnak. 
Schobert. Mtakr. Stram. 

730 Sunday Play: Lfl CM. 
PtetTeComaHe. 

220 Muds ta CXr Hme.MuBfa 
tom the LMC Festival c# 


G Kpa ri mantal Music, 
mao Choir Worio. Doha. 
1230 Clow. 


BBC RADIO 4 

axUNeim. 

210 Prelude. 

830 Moritag Hea Broken. 

730 Nows. 

7.10 Surety Paper* 

7.10 The Uving WCrid. 

740 Surety. 

250 Anthony Ctea 
030 News. 

210 Sunday Papers. 

215 Latter tom America. 

030 Morning Santas. 

1200 The AictaML 
1130 (FM) Medumwave. 

1130 ftJN) Test Match SpecUL 
1145 (FM) The Now 

Bimpi m , 

12.15 (FMI Oeoart tateid Otto. 
130 [FM) The Worid TWs 


230 (Fty Gardeners’ Question 
Tboa. 

230 ffW) O-Day: 0 June 1994 
330 fty Pick of the Wtak- 
415 (FM) Anriyria. FemEntam 
tadequeflty. 

530 (FU) Bom to M Mta. 

530 (FM) Booty Pineal 
200 (Ffcfi Stir OCtorit Naws. 
215 (RuQ Feedback: 

230 ffM) Crimawavoa. 

730 In Burinaas. The Brittsh 
advertising industy In too 
18802 

730 A Good Raod. 

830 (FM) Thstf* HUtoy. 


200 (LW) Open IMveratiy. 

830 (Fhfi Crarae Cetorm. 

200 (FMJThe Natural Hbtory 
nogramrrM. 

230 (FM) Bfg Bang. 

1030 News. 

1219 Hancock'* HOB Haw. 
Hancock'S war. by Ray Gotion 
and Afcai Sbnpson. 

1048 Stogtag for a LMng. 

1MB Learning to Ure h China. 
1145 Sends of Frith. 

1200 Now 2 

1233 Shipping (forecast. 

1243 2W) Ae BBC Worid 
Sentae. 

l243 0FM)Ctoaa 


BBC RADIOS LIVE 
230 Haretfonri Rugby union. 
730 The BreaMaat Progra ren a. 
200 Atotatr Stewart^ Bwtoay. 
1200 Midday EtflUoa 
1215 The Byte. 

134 Surety Spoil 
730 Naws Extra. 

735 Blaek to toe Future. 

B30 Tha UltimaM Preview. 

1035 Special Assignment. 

1036 Crime Desk. 

1130 Night Extra. 
12XHMghtcs2 
230 Up Afl Mght 


WORLD SERVICE 
BBC for Europe can to 
ra e rtvad to western Ewope 
cm medhim wave (MB KHZ 
(46ton) et these dmas 8SR 
230 Naws and features In 


German. 030 Composer Of 
The Month. 7.00 News. 7.15 
Latter from America 730 Jazz 
PW The Asking. 200 News. 
215 Crossing toe Bonier. 830 
From Our Own ConaapondarL 
230 Witte On. 200 Nows. 039 
Words of Frith. 215 Ray on 
Record, 1030 World Naws and 
Butasos Review. 1215 Bering 
Stars. 1030 Fok Routes. 1045 
Sprite 1130 Naws; Sdenco In 
Action. 1130 BBC Engflah 
1145 News and Press Review 
in Gorman. 1230 Newaderic 
1230 The Jotai Dunn Show: 
130 New; Hay of the Woofc 
Racing Demon. 230 Newahour. 
330 Nam; After the 
Revolution. 330 Anything 
Goes. 430 News. 415 BBC 
EngBah. 430 News and 
features In German. 5X» News. 
5.15 BBC EngB ah . 200 Worid 
News and Business Review. 
215 Printer's DeriL 530 News 
end features to German. 530 
The Musician'S Murictan. 830 
Europe Today. 930 News. 200 
Wads of Frito. 215 Al the 
wbrtrs a Footorif Pitch. 030 
Brain of Britain- 1030 
Newahour. 1130 Wbrid News 
and Business Review. 11.15 
Seeing Stas. 1130 Latter from 
America. 1145 Sports. 1230 
Nawsdaak. 1230 After the 
Revolution. 130 Nowa. 1.15 A 
Step Too Rar. 130 ta Prato of 
God. 200 Nawa; Tho Wage 
where time stands s&L 249 
Crossing the Border. 330 
Nmredesk. 330 Composer of 
tha Month. 430 Newedwk. 
430 BBC English. 446 
Frurinayodn. 


CHESS 


New York's Trump Tower will 
host the Intel-PCA world cham- 
pionship quarter-finals on 
Monday, con tinuing until 18 
June at a venue which the 
organisers promise will be “at 
the bottom of a seven-storey, 
pink marble atrium, complete 
with waterfalls". The purse for 
each match is 150,000, (£33,333) 
and the target is a 1995 match 
with Gary Kasparov. 

The FIDE quarter-finals will 
be in late July near Hyderabad 
sponsored by Sanghi, an Indian 
industrial group, whose prize 
fond per match is SFrTO^JOO, 
(£32,710) a curiously similar 
sum to the PCA version. The 
competition between rival 
world bodies is providing a 
foranrifl) harvest for top grand- 
masters. 

On paper the only dose con- 
test m New York will between 
file rising stars of the US and 
Russia, Gata Kamsky, 20, and 
Vladimir fframniic, 18 . Nigel 
Short and worid no 3 Vishy 
Anand should beat veteran ex- 
Soviets, while Michael Adams 
plays the inexperienced Sergei 

Tiviakov. 

But Tiviakov has beaten 
Adams in their three previous 
meetings, while the Cornish- 
mwn ban just disappointed at 
Las Palmas where he scored 
only a point from his last five 
games (J Lautier, France, 
White; M Adams, England, 
Black; Las Palmas 1994). 


1 d4 NflS 2 c4 c5 3 Nf3 cxd4 4 
Nxd4 e5 5 NbS d5 6 cxd5 BcS 
Nzd5?? loses to 7 Qxd5 Qxd5 8 
Nc7+ 7 N5c3 0-0 8 e3 e4 9 Be2 
Res 10 Nd2 Nbd7 LI Qc2 Qe7 
L2 tW) aG 13 a4 D6 14 NC4 Bb7 
IS Bdl Rad8 16 b3 NeS? White 
has developed sensibly so 
Black has to try to regain his 
pawn, perhaps by Nf8 17 d6 
Bxd6 18 NxbB Qc7. Instead 
Adams blunders. 

17 Nxe4 Nxe4 Probably he 
intended Nzc4, missing the 
reply IS Nxc5! 18 Qse4 Qg5 19 
M Qg6 20 Qxg6 Nxg6 21 U5 
Ne7 22 d8 NfB 23 d7 Re7 24 b4l 
Resigns. If Bzb4 25 Nxb6 BcS 
27 Ba3 Bxb6 28 Bxe7 Nxe7 29 
Rabl wins easily on material 
No 1024 



White mates In three moves, 
against any defence (by L 
Vitale, The Problemist 1994). 

Leonard Barden 

Solution Page XXH 


BRIDGE 


Today’s band is from duplicate 
pairs; North. 

N 

4 J 7 6 
¥ AKQ 
+ AK87 
*942 

W E 

*932 484 

VJ1DS8 V652 

f 10 5 2 ♦ Q 9 6 3 

* K 10 5 * J 8 7 3 

S 

A AKQ 105 
f 743 

♦ J4 

* AQ6 

With North-South vulnerable 
South dealt ami bid one spade, 
North said three diamonds, 
South rebid three spades and 
North raised to four spades. 
South, showing interest in 
higher things, bid five dubs, 
and six spades from North con- 
cluded the auction. 

West led the heart knave, 
won by dummy's queen, and 
the declarer took stock. There 
were 11 top tricks, and the club 
finesse seemed the only hope 


for the 12th. South cashed ace, 
King, knave of trumps, then 
ace and king of diamonds, and 
ruffed one diamond in hand, 
crossed to the king of hearts, 
and cashed the ace. He led a 
club from dummy, and finessed 
the queen. West won with the 
king and returned the heart 10. 
South ruffed, but had to lose 
another club - one down. 

South had two chances for 
his contract, and tried only one 
of them. He should have first 
tried the other finesse. What 
other finesse? The indirect 
finagse in diamonds, of course. 
At trick five he should lead a 
diamond from the table. East is 
forced to take with his queen, 
and there is no further prob- 
lem. Sooth is home with five 
spades, three hearts, three dia- 
monds, and a club. If West 
holds the diamond queen. 
South must than try the club 
finesse, hoping to find East 
with the king. Two chances are 
surely better than one. 

E P C Cotter 


CROSSWORD 


No. 8,471 Set by DINMUTZ 

A pri ze of a dawric Pettkan Souverfln BOO fountain pen, inscribed with the 
winner's name for the first correct notation opened wnrt five runner-up 
of XSS PeHfcan vouchers. Solutions by Wednesday June IS, marked 
rani 8,471 on the envelope, to the Financial Times, Number One 
Southwark Bridge, London SKI 8 HL. Solution on Saturday June 18. 



1 Yoi 


ACROSS 

people could be sec- 
ts (ii) 

7 Copper coin as a trophy? (3) 

9 Grasses blown in the wind (5) 

10 Hercules, wrongly given oxy- 
became lewd (9) 

11 Tranquillity is the way with 
bad head! (9) 

13 Accomplished by a reduced 
department (Si 

13 Great volume of public trans- 
it? (7) 

15 Flat is air-conditioned by day 

IB Ring back a nursery charac- 
ter^) 

20 Bloomer a big one, it 

turns out! (7) 

23 Swift attack traps pack-leader 

24 !Ske boxers, say, released 
from building on a foreign 
field?©) 

36 Sacrifice nett return? It is 
blotted out! (9) 

27 Name given to parent of 
Circe, for example (5) 

28 Rant restriction? (3) 

29 Lucky omen? It depends! (54) 


Solution 8,470 


atanana □□□□□DDE 
□ □aciHnan 
aaaaaoHEin heded 




□EaiD nHDEDOHEEQ 
0 □ 3 H Q D E 
□□□□nciE oocieoe 

□ a □ s □ e 
aaanQQ bhobede 

□ □ □ □ E E Q 

□paanEHBOE EEEJH 

□ □□□□BOB 

aaana eheedqqioe 

□ □□□□□BE 

aagaanaE Haanne 


DOWN 

1 A woman's garment is ou 
crookedly, making a graze ( 8 ) 

2 Like a good monk, taking to 
Bede In translation? ( 8 ) 

3 New lease for an art sup- 


salmon In Scotland, 


6 Observes a group going from 
one extreme to the other (9) 

7 Selected name for Korea at 
one time ( 6 ) 

8 Assumptions of one in sta- 
tions? (6) 

14 Carpet-brush holds unusual 
kW(9) 

18 Once hard, can be reset and 
securely fastened ( 8 ) 

17 Bowerbird? One can be seen 
in Beds, we hear ( 8 ) 

19 NO south constitution here in 
Texas7 CD 

20 Abandoned in outskirts of 
Burnley? Nonsense! (7) 

21 Painting not quite completed, 

but it Is like Dawkins! (6) 

22 Tenor air? ( 6 ) 

25 A stuck-up attitude of a story- 
teller? (5) 

Solution 8,459 



WINNEBS 8,469: T. & (L Heal, Carmarthen, Dyfodj M. AmdeD-Smitt 
Frodsham, Warrington; Mrs DJ. Emerson, Kingsbridge, Devon; Dr S 





T here is a scene in Mozart's 
Don Giovanni which, I 
suspect, has puzzled many 
others besides me. It Is 
that passage in which the aristo- 
cratic seducer of "obi ones, young 
ones . . (and their daughters, I am 
sure) turns the toll power erf his 
melody an to Zerlina, the peasan t 
beauty, at her wedding lunch. 

We know before she flutters her 
first hesitation, that she is lost; that 
she is fated to be number one thou- 
sand and four, gaining at last noth- 
ing but misery «nd shame, because 
no-one in those days would pay for 
her story. 

But wait! Her biting song entan- 
gles the don in one of the loveliest 
duets ever written, peeping hesi- 
tantly at first and then gaging in 
wonder an the rapture love. It is not 
necessary not be a moralist; nor to 
read leading articles in British 
newspapers to know that this is not 


Old secret of the modem Don Juan 


At the opera the seducer inspires . In life he is mocked. Max Wilkinson explains 


love. It Is the word that dares not 
spell its name, shameless, disgrace- 
ful and one which would certainly 
have ruined our hero's political 
career, had he stooped to such an 
occupation. 

But - here is the puzzle - noone 
is ever surprised that the deplorable 
climax of this lascivious couple 
holds the audience in a spell of pure 
beauty. Thousands of respectable 
parents, politicians and even news- 
paper columnists, have been 
seduced by it It would be too much 
to say that they want the don to 
succeed, but certainly they delight 
in the attempt. And they under- 


stand that, far the fl ee tin g moment, 
it is love. 

This is not the hypocrisy of those 
who relish a newspaper scandal, 
nor can it be dismissed merely as a 
trick of the music; for the victim, 
Donna Anna, remains a revolting 
moralist, even in her sublimest 
arias. 

No, Zerlina’s song captures 

exactly tha concealed anti nhriatian 
mqgmg w of a story which has fasci- 
nated the warmer parts txf Europe 
for 3K centuries. The tale of the 
libertine dragged to hell by the 
statue of a murdered father first hit 
the Spanish stage In 1630 as Tirso 


de Molina's play. The Seducer of 
Seville. Why has it continued to 
hold the imagination? And why 
does it now consume the British 
public to the exclusion even of 
European election issues? 

En our real life modem version, 
the father-judge is dead only to 
good taste, and he drags -the seducer 
merely into a living hell of press 
interrogation; but the British son of 
a lord is heir to all the Spanish 
don's arrogance, vitality and insou- 
ciant humour. He shares also a 
weakness for chronicling his con- 
quests. 

And. we love him, our Don Clark; 


or if not him. It His ancient tale 
may not be dismissed as an escape 
into TnftVi fantasy. For as my col- 
league with the sparkling eyes 
observed: "Women love a rogue. He 
understands Hwm And they always 
hope ..." That rascal Pushkin knew 
it too: His Juan found Anna scan- 
dalously pliant even after he had 
murdered her father. Barnard Shaw 
gave him the last word in hell 
Many others, including MoMre and 
Baudelaire, understood the story’s 
(tisaiAmt message. 

Newspapers editors, alas, trade 
only in vulgar certainties and so 
force their readers to become prigs 


or voyeurs. Yet Pushkin and Mozart 
axe honoured as gods for telling this 
story with elegant simplicity while 
exploring, almost without our notic- 
ing It, a most uncomfortable truth - 
namely, that the Christian sexual 
code never was accepted fully by 
western society, whatever people 
pretended. It was and. is defiantly 
Ignored in real life by bold dons and 
amorous women and secretly 
resented by many others who may 
mnciTTm* either great art and cheap 
newspapers - or or both. 

All under stand that dons leave a 
trail of unhappiness: the tearful 
fury of Mozart’s Elvira, and the 


despair of Mrs Harkess, who cuck- 
olded her husband, the judge, only 
to become her daughters' rival. 

But we know also that Zerlina is 
a pussy-cat longing to slip away to 
be stroked and perhaps to bear her 
poor Masetto unexpectedly hand- 
some sons. 

Great art whispers, moreover, 
that the Christianised version of the 
myth contains a deep untruth, hi 
real life, Don Alan Clark, is not 
dragged into the icy fires, nor even 
horsewhipped. 

He suffers, like Leporello, the 
don’s lecherous servant, some 
inconvenience. Then he laughs defi- 
ance at the devil and lives happily 
ever after in his castle with a wife 
who, not improbably, has the last 
laugh of all 

Real hell is the state of soul 
inhabited for evermore by Anna 
and Elvira and, bom last week it 
seems, by Mr and Mrs Harkess. 



1 


iiV 



-o 






Private View/ Christian Tyler 

A young 
trooper in 
the battle 


five MP, as opposed to the ones I 
see round here who depress me. I 
can't help th inking if only I was 
there perhaps I could do it differ- 
ently. Being a minister? Hmm. Yes, 
I suppose so. I haven't calculated 
anything. 

"But Tm very conscious of what I 
don’t want to be. Tm very conscious 


of what I dislike about politics and 
politicians. At the same time I think 
I have the frankness to admit that 
I’m still learning about what it 
takes to be a good and right politi- 
cian and an honest politician. Per- 
haps that honesty itself shows I 
could have the capacity to make it 
"And I will make it" 


for Europe 

Robert Buckland, 25, is a Conservative 
candidate in the European elections. 
He explains why he is running 


R obert Buckland, nov- 
ice barrister, settled 
his tubby, pinstripe- 
sutted frame behind 
the pupil-master’s 
desk and ex plained why he wants 
the 400,000 voters of his region to 
make Mm a Euro-MP on Thursday. 
He is talkative, tidy and 26 years 
old. 

Is politics your career? I asked 

him. 

He looked momentarily uneasy. *T 
don't like that word," he said in his 
sing-song Welsh accent “I think it’s 
a vocation. I think it's a duty, an 
old-fashioned thing. And indeed 
some people might think it was 
rather disingenuous of me to start 
talking about service and duty. But 
I think it is a calling, and a noble 
caning.” 

Voters may think it has more to 
do with self-service these days than 
public service. 

“I know, I know," sighed the can- 
didate sadly. "I think that's a prob- 
lem of communication." 

Communicating is not Robert 
Buckland's weak suit: although not 
on the Conservative Party’s official 
list of candidates he managed to 
persuade the selectors to run him, 
the local boy, in South Wales West, 
a Labour-dominated constituency 
they have little hope of winning. 

This putative moulder of post-mil- 
lennial Europe was a mere 10 years 
old when Labour’s strikebound win- 
ter helped Margaret Thatcher to her 
first election victory in 1979. He 
says he remembers it welL 
You were a bit precocious, then? 
"I don't know about precocious. 
But I had a healthy interest in 
church architecture from an early 
age. And my parents used to laugh 
about that We were always a very 
bookish family. My father (he is a 
solicitor* is a very well-read man.” 
His mother runs a municipal lun- 
cheon club for pensioners. 

He was, he said, a "strange teen- 
ager" who spent his time at a local 
private school "reading and listen- 
ing to music and thinking and writ- 
ing and doing all sorts of things 
that perhaps a normal child 
wouldn't have the time to do. So to 
that extent it was rather an isolated 
upbringing. And this sense of the 
misfit perhaps came in now and 
again. Perhaps I played up to it” 
His first political act, at 16, was to 
join the Llanelli Young Conserva- 
tives. After school he worked as a 
political agent before going to Dur- 
ham University to read law and 


become president of the Union Soci- 
ety. He sits on Dyfed county coun- 
cil. 

His heroes are Peel, Disraeli and 
Lord Salisbury. He calls himself a 
non-ideological, post-Thatcherite 
Tory for whom conservatism, today, 
wrongly identified with huge vested 
interests, is really about “what used 
to be called the little man”. He 
suggested Ms party's leaders have 
missed their way, garbled their mes- 
sage and lost touch with the ordi- 
nary person. 

No doubt they felt like you when 
they started, I said. 

“I know. It’s a real worry of 
mine,” he replied, quickly injecting 
a note of humility. “I don't want to 
forget that I thought it would be 
much better to come back to where 
rm from and work amongst people I 
know, to stay JocaL" 

Shouldn't you team a bit more 
before aiming for Europe? 

"Yes, I’ve got a lot to learn. I 
don’t pretend I haven't But If you 
don't have people like myself from 
local areas who are genuinely inter- 
ested in foreign European policy 
and who have learned a bit about it 
beforehand, and who, importantly, 
are from a younger g en er a tion, then 
where are we going to be? 

"Are we to continue to elect anon- 
ymous figures to Europe, or are we 
going to start electing people who 
can relate those grandiloquent 
issues back to grass roots? 

"Although I’m young, I think 
youth is an asset Why can't we 
have more of a crosssection of rep- 
resentatives? Why Is it that cm my 
own county council I am the young- 
est person by 15 years? The average 
age there is 70. They're all old men! 
You’ve asked the question why. But 
why not? Pitt was prime minister at 
23." 

Are you attracted by the big 
expeases and salary? 

“Well, I've heard a lot about the 
gravy train. Quite frankly, it 
doesn't attract me. It concerns me if 
there is abuse. I would be scrupu- 
lous, first of all in not indulging in 
it and secondly in trying to stop it 

Tm doing very well, thank you 
very much, as a barrister. Tm work- 
ing very hard here. Tm managing to 
pay off my student debts. As far as I 
am concerned it’s not a meal ticket, 

it’s something which genuinely 
interests me. Call me an optimist, 
call me naive, call me young, what- 
ever, I don't care. That’s how I fed 
now, and I don’t want to forget 
that" 


While Buckland practises crimi- 
nal law from Swansea, his girlfriend 
is in London, learning to be a man- 
ager with Abbey National building 
society. 

I said: in politics you'll need a 
wife, of course. 

He laughed, a little ruefully. “Oh, 
I know that’s what they say. I don’t 
like to see myself as this ent-and- 
dried young man who’s, you know, 
going to make it and has sort of set 
his sights and carefully tailored 
everything to that end, f haven’t." 

Why do they see you like that? 

"Because Tm young, because Tm 
a barrister, because I’m a Tory, 
because 1 like going round and 
speaking to old ladies or whatever 
they seem to think 'Oh, yes, he’s 
going to make it he’s going to be 
there, he’s guaranteed, a dead cert’ 
All I am Is an enthusiast Pm over- 
enthusiastic.’' 

You mean Just because you’re a 
cardboard cut-out young Tory 
doesn’t mean you don’t care? 

Teh. alright," he said, swallow- 
ing Hip designation reluctantly. "I 
do care, rm a human being just likw 
anybody else and I have interests 
and passions and concerns. I Just 
want to get involved. There’s no 
point trittitig on the lAMlnei 

What makes you passionate? 


"What makes me passionate Is 
... ttds sense of disillusion, particu- 
larly now in the 1990s, this sense of 
cynicism, this disillusion that the 
general public have with our 
etected politicians, this sense of 
drift..." 

That’s not a passion, I objected. I 
mean what brings a lump to your 
throat, a knot to your stomach? 

He pondered. "I think, really, it's 
some of the traditional issues: the 
Union, for example, does get me 
going. £ genuinely get very passion- 
ate in debates about the Union.” 

Buckland explained that althoug h 
he was proud of being Welsh - he 
sings baritone in the choir - he 
loathed Welsh nationalism. "There’s 
no contradiction between being 
Welsh, being British, and being a 
European. I think it was John 
Buchan who said you can't have too 
many loyalties. And I agree with 
him. I rejoice in that illogicality." 

But do you have no over-riding 
h umanita rian aim? 

“I think it has to he the preserva- 
tion of community spirit and the 
preservation of the notion of aware- 
ness and responsibility to each 
other." 

Buckland is from an evangelical 
Anglican background, likes the 
Book of Common Prayer but has no 


quarrel with women priests. "It 
would be nice to see Conservatives 
talking about Christian or religious 
values as being a good thing." 

I th o u g ht they did that all the 
time, I said, but Just practised the 
opposite. 

"Well, that’s Individuals," he mm 
quickly. "No, what I am saying is 
there are lots of values we have lost 
and we should go back and redis- 
cover in organised religion - as 
long as governmmt does not preach 
where it cannot legislate.’' 

Are people going to call you a 
young fogey? 

“Now, yes, sort of A N Wilson 
men in tweeds? Funny, I thought 
you’d ask zne that A young fogey is 
not only someone who dresses hke 
that but Who thhitea Hka a young 

fogey, who has a love erf the old 
dispensation and a contempt for 
change. That’s dangerous. Tm not a 
reactionary." 

. What wiD you do If you don't win 
this seat? 

"Carry on working." 

Your next political step, I mean. 

"I would like to be an the list and 
see where it goes from there." 

Would you like to be a nrmifttef 
one day? 

"What I want to do Is mark each 
target as it comes, become an efiec- 


Champagne of The Season 


In for A TksAT 


IsrHsrUAica vNswZmiakd.Diiht Biiidci 2-GJtue 

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Out for a Duck 


Shoot the bureaucrats 

Michael Thompson-Noel 


Fifty years after the 
invasion of Nor- 
1 it - — nKS mandy, we have 
turned western 
flfewfw Europe into a buf- 
foon-state: a place 
where the burean- 
crata control the 
^ asylum and are run- 
ning it in a manner 
that is an insult to the memory of 
those who scrambled on to the Nor- 
mandy beaches half a century ago. 

This buffoon-state is a place of 
hysterical laughter, jokes and gibes 
occasioned by the avalanche of 
directives and regulations emana- 
ting from Brussels, as well as those 
concocted locally by bureaucrats 
working for member governments. 

How about this for a laugh: in 
Blackburn, the Cavalier Carpet 
Company, surveying, in astonish- 
ment the £28bn or so it costs per 
year to fund the Common Agricul- 
tural Policy, has calculated that it 
would be much cheaper to cover 
every square inch of the 12 Euro- 
pean Union countries with top-qual- 
ity carpet 

Or how about this for a laugh: 
Oliver Field, of Berkshire, one of 
Britain’s top beekeepers, has been 
battling to stop Ministry of Agricul- 


ture officials coming on to his 
honey farm to test Ms 500 hives for 
signs of "foul brood”, a bacterial 
disease which can devastate bee cal* 
onies. The reason he did not want 
them back is that in March 1992 
they dosed six of Ms hives with the 
anti-bacterial syrups used to cure 
foul brood - at four times the 
required strength. 

More than 230,000 bees died; he 
lost £3,000 worth of honey produc- 
tion. He says that he could treat Ms 
own bees against the disease, as he 
used to. but that the ministry's Bee 
Control Order makes that illegaL 
He has said he would rather face 
prison than risk a repeat visit from 
the ministry’s blunderers. 

Or how about this for a laugh: In 
November 1992, out in the North 
Sea, the Peterhead trawler Sundari 
was battling mountainous waves. 
As she did so, her crew struggled to 
hurl overboard 300 boxes of fully- 
grown haddock. 


HAWKS 

& 

HANDSAWS 


The skipper had to dump Ms 
entire catch, worth 28 , 000 , because 
Britain’s annual haddock quota had 
already been caught. 

If he had returned to part with 
his catch, he could have been fined 
up to £50,000. But he couldn’t help 

catching haddock fo the autumn cf 

1992, haddock were present off the 
north-east Scottish coast in greater 
numbers than for many years. 

The trawlermen were trying to 
catch whiting. But every time they 
lowered their nets they found them 
bulging with haddock. Meanwhile, 
other European boats were catching 
almost unlimited quantities of had- 


dock, knowing tha t their own fish- 
eries inspectors would not bother to 
enforce the quota rules. 

Fifty years after tire Normandy 
landing s, you can laugh or you can. 
cry at the Europe that has been 
created, but you cannot ignore it 
An excellent guide to the pathology 
of the bureaucrats is a book. The 
Mad Officials, by Christopher 
Booker and Richard North (Consta- 
ble, £?.95), which pinpoints what 
Booker calls the great regulatory 
disaster that has been hitting mil- 
lions of people, and thousands of 
businesses, In Britain alone. 

But it is not all Brussels’ fault. 
According to the authors, there Is 
the “Whitehall effect” - the way in 
which UK officials often tack new 
requirements on to original EU 
directives, making their impact on 
businesses much more damaging. In 
addition, there is a wave of regula- 
tory law which Is entirely British- 
made and has nothing to do with 


Brussels. One of the greatest prob- 
lems of all is over-zealous enforce- 
ment. 

"One thing which particularly 
struck us", they write, "was that 
wherever we looked. ..we found the 
great engine of bureaucracy and Its 
myriad officials behaving in the 
same, identifiable ways. ..using the 
same Jargon, causing the same 
problems, making the same mis- 
takes. 

It was as if we were always 
looking at the same enormous, 
blundering monster which, 

al thoug h it had many heads, Was 

always in the end the same recog- 
nisable animal " 

The Mad Officials is important for 
the way it threads together the dif- 
ferent strands of the regulatory 
disaster caused by officials. But it 
has not converted me from Euro-en- 
thnsiaam to Euro-scepticisin.T am a 
federalist, as ft happens. If only 
because I detest and fear tribalism. 
and nationali sm 

The great thing that can be said 
for western Europe, 50 years after 
D-Day, is that we are not ripping 
each other’s throats out We are 
muddling along appallingly, but at 
least not warring. All we need to do 
is shoot the bureaucrats. 




Astra 


fup P l3f 

gyfopean 






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