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Manners aw /2 fosers It's the next 

The new parliament election that matters 


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Joe Rogaly, page 22 


Peter Wallenberg 

Swedish peddler 
who never fails 


Page 22 



FINANCIAL TIMES 


Cultural clash 

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in the firing line 

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North Korea quits 
nuclear agency in 
inspections row 

North Korea yesterday annmrp^ j( ^ 
withdrawing from the International Atomic Enenry 
Agency, but stopped short of pulling out of the 
nuclear non-proliferation treaty. 

The North Korean action was taken in response 
to a decision by the IAEA on Friday to suspend 
technical aid to Pyongyang as a symbolic penalty 
Bar its refusal to allow full international inspec- 
tions. Page 24 

Bank chief resigns: Leif Kievan, managing- 
director of state-owned Fokus Bank, Norway's 
third largest commercial bank, resigned after 
revelations of alleged irregularities connected 
to the disposal of a property shareholding. Page 29 

Blow to EU-ftussfa pacta Hopes of wrapping 
up a new political and trade agreement between 
the European Union and Russia hung in the bal- 
ance last night after a series of obstacles threatened 
to delay the proposed pact. Page 2 

03 spill ruling against Exxon; A jury in 
Anchorage, Alaska, paved the way for Bwnn 
to pay punitive damages for the 19S9 Exxon Valdez 
ml spill - the worst in US history - by ruling 
that the accident was helped along by actions 
taken by the company and the tanker's ca ptain 

Claim on Rwanda massacre weapons: 

France, South Africa and Egypt may have 
the slaughter of Tutsi civilians in Rwanda by 
providing weapons and military training to the 
Rwandan army and its militias , accor din g to 
secret militar y documents obtained by a human 
rights organisation. Page 6 

Plea on Uruguay Round rat ifi ca ti on 

The achievement of 
the Uruguay Round 
of global trade talks 
"is still far from com- 
plete” and European 
Union leaders must 
treat its ratification 
with urgency, Peter 
Sutherland (left), direc- 
tor-general of the Gen- 
eral Agreement an 
Trade and Tariffs, 
told a meeting of the 
European Union economic and social committee 
in Dublin. He said Europe had “a responsibility 
to give leadership on ratification.’' by the 125 states 
that signed the Gatt agreements in ApriL Page 4 

Amstrad, UK-based consumer electronics group 
run by Alan Sugar, is paying about EfiOm ($9Qm) 
in cash to acquire Vi glen, a private company 
which builds and sells personal computers directly 
to its customers. Page 25; Lex, Page 24 

Kidnappers offered safe passage: The 

kidnappers of Britons Kim Housego and David 
Marine in Kashmir were offered a “safe passage 
corridor” by the Indian authorities in return for 
the quick release of their captives. Page 34 

Airllno takeover planned: Malaysian entre- 
preneur Tajudin Ramh announced a controversial 
proposal to take over Malaysian Airlines, one 
of Asia's biggest carriers, through a 32 per cent 
stake costing MELTSbn (US$71 Gm)- Page 28 

Moulinex, French household appliances group, 
suffered a net loss of FFrSSSm ($l04m) in 1993, 
after losses of FFr41m the previous year. Page 25 

Clinton to launch welfare plan: President 
BUI Clinton will today present his plan to “end 
welfare as we know it”, an ambitions blueprint 
for overhauling the US benefit system in a way 
intended to encourage and force people to move 
off the dole and into the workforce. Page 5 

Perkins Group, UK diesel engine producer 
which is part of Varity of the US, has signed a 
long-term partnership agreement which wifi, see 
its engines produced In China for the first time. 
Paged 

Pensions Wow to Berlusconi: Italy’s 
government is studying ways to respond to a 
constitutional court decision that threatens to 
add LSO.OOObn ($20bn) to this year’s spending 
on pensions. Page 24 

Tpson to stay in jaH: An Indianapolis court 
rejected former heavyweight boxing champion 
hflfep TVson’s plea for his six-year sentence for 
rape to be reduced to the 26 months he has already 
served. 

Prize-winning economist dies: Jan 

Tinbergen, the distinguished Dutch ma t h ema tical 
economist, socialist and pacifist, has died at the 
age of 91. He jointly won the first Nobel memorial 
prize in economics in 1969- Obituary* Pag® 2 




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TUESDAY JUNE 14 1994 




Concern as fragmented right gains ground M Record low turnout 

Euro-parliament ■ nets 9 
power shift raises 1 ^ 

fear of instability [ 


By David Marsh in London and 
Lionel Barber In Luxembourg 

Governments across Europe 
expressed concern yesterday 
about the stability of the Euro- 
pean parliament after elections 
that saw a strong shift to the 
right on the Continent offset by 
Labour’s sweeping victory in the 
UK 

In the immediate aftermath of 
the results, Mr A chilla Occhetto 
resigned as leader of the Demo- 
cratic party of the Left, the main 
Italian opposition party, and Mr 
Edouard Balladur, the French 
prime minister, signalled a possi- 
bly more nationalist stance by 
his government 
Polling last Thursday and on 
Sunday was dominated by a mix- 
ture of protest voting and apathy 
in many EU member states. The 
new 567-member parliament in 
which Socialist and allied parties 
look likely to form the largest 
grouping with an estimated 213 
seats, wffl have increased powers. 

But the record low turnout 
across Europe - down to 5&5 per 
cent from 58J5 per cent in the last 
election in 1989 - may constrain 
the parliament’s ability to play a 
fuller role as the EU's sole 
directly elected institation. 

In spite of the strong showing 
by conservatives in Germany, 
Italy, Spain. Netherlands and 
Denmark, co-operation among 
rightwing MEPs in the new par- 
liament is likely to be hampered 


by bickering over the composi- 
tion of the European People's 
party group, traditionally domi- 
nated by Christian Democrats. 

Fragmentation of the rightwing 
presence has been increased by 
the strong showing of Italian 
prime minister Silvio Berlus- 
coni's Forza Italia movement, 
which won 30.6 per cent of the 
votes, up nearly 10 percentage 

EUROPEAN ELECTIONS 

Results, comment and analyse 
on pages 7-12 

□ Joe Rogaly Page 22 

□ Editorial Comment ..Page 23 


points from the March general 
elections. 

Mr Leo Tindemans, a former 
Belgian premier and leader of the 
EPP in Strasbourg, insisted that 
his grouping did not want to 
work with Forza Italia because of 
the latter’s coalition anianra with 
neo-fascists. 

Meanwhile, senior German offi- 
cials expressed concern about the 
risk of unpredictable factions in 
the parliament disrupting Bonn’s 
plan to work closely with the 
newly elected assembly. 

They drew attention to the 
electron of maverick French and 
Italian MEPs from the right, 
which may leave between 80 and 


100 MEPs unattached to formal 
left or rightwing party groupings 
at Strasbourg. 

Worries surfaced in Bonn 
about co-operation with the par- 
liament when Germany takes 
over the six-monthly EU presi- 
dency next month, which took 
some gloss off the surprise vic- 
tory by Chancellor Helmut Kohl's 
Christian Democrats cm Sunday. 

In France, Mr Balladur voiced 
concern about the diversity of 
policies and parties represented 
in Strasbourg. “ Fragmentation 
among too many lists threatens 
to weaken France at a European 
level." he said. He added that the 
poll had shown that voters 
wanted French interests to be 
better represented in Europe. 

Elsewhere, ministers and offi- 
cials warned about the twin dan- 
gers of voter indifference and the 
swing to anti-Maastricht parties 
on Sunday. Mr Niels Helveg 
Petersen, the Danish foreign min- 
ister, said the low turnout was 
“really disappointing". 

It also emerged that Mr Kohl Is 
playing a crucial role in trying to 
achieve a compromise over the 
succession to Mr Jacques Deltas 
as president of the European 
Commission- 

Mr Berlusconi is to meet Mi- 
Kohl in Bonn on Thursday In the 
Italian leader’s first high-level 
European diplomatic meeting 
since assuming office a month 
ago. 

Italy is being courted by the 



The smile of success: Chancellor Helmut Kohl after his Christian 
Democratic Union’s win in Germany’s EU election yesterday. 


contenders for the presidency 
job, including Sir Leon Brittan, 
chief EU trade negotiator, prime 
minister Bund Lubbers of the 
Netherlands, and Mr Jean-Luc 
Dehaene, the Belgian premier*. .. 

Mr Alain Juppe, French foreign 
minister, said in Luxembourg 


that he hoped for an early deal, 
but that would depend on a 
“global package" - a reference to 
tradeoffs with other senior posts 
such as the future head of the 
World Trade Organisation and 
tbe-Organisation of Economic 
Cooperation and Development. 


Major signals plans for reshuffle after poll rout 


By Phita Stephens, 

Political Editor 

Mr John Major last night signalled plans 
for a wide-ranging cabinet reshuffle next 
month to provide a fresh start for the UK 
government after Its European elections 
defeat 

As the Labour party celebrated its best 
performance in a national election since 
the 1960s, the prime minister said be was 


determined to fight off any challenge to 
his leadership. Mr Major underlined a 
commitment to stick with his present pol- 
icies despite what he acknowledged bad 
been a “very poor* set of results. 

But acknowledging the need for new 
blood in the sailor ranks of the govern- 
ment, he gave a dear hint that a reshuffle 
before the summer parliamentary recess 
would be more radical than hitherto 
Ima g in ed . 


Insisting that economic recovery was 
taking the government above the low- 
point in its fortunes, Mr Major dismissed 
any threat to hift position. He said he did 
not expect a challenge in the autumn. “I 
will he here waiting for it if there Is one,” 
he added. 

His press conference at Downing Street 
came jubilant Labour claims that 
the victory in the European poll marked a 
“watershed" in its long march since 1979 


back to electoral respectability. 

Mrs Margaret Beckett, the interim 
Labour leader, said sweeping gains in 
southern England demonstrated Labour 
had won the “mantle of trust" from the 
Conservatives. 

Despite winning its first ever seats in 
the Strasbourg parliament, Mr Paddy 
Ashdown’s Liberal Democrats saw their 
vote fall sharply in response to the 
Labour surge. 


BIS warns 
against 
controls to 
regulate 
derivatives 

By Philip Coggan <n Basle 

Market-friendly methods, rather 
than direct controls, should be 
used to regulate derivative finan- 
cial products, the Bank for Inter- 
national Settlements urged at its 
annual meeting in Basle yester- 
day. 

The BIS. an international 
organisation that promotes 
co-operation among central 
banks, said improved disclosure 
by individual firms, capital ade- 
quacy standards that relate to 
market risk, and improved settle- 
ment systems were the key to 
controlling the potential risks 
caused by derivative instru- 
ments. 

In its survey or world economic 
conditions, the BIS suggests that 
the US Federal Reserve may have 
been too slow to increase interest 
rates. “It could plausibly be 
argued that keeping real policy- 
influenced interest rates negative 
for too long risked contributing 
to a build-up of infla tion. ” The 
Fed has recently moved towards 
a “neutral” interest rate policy. 

The BIS, in its annual report, 
says - as did the Organisation 
for Economic Co-operation and 
Development last week - that the 
solution to high unemployment 
is to make the labour market 
more flexible. 

Its emphasis on derivatives fol- 
lows fears that the complexity 
and scale of markets in deriva- 
tives, such, as futures and. 
options, might lead to growing 
financial instability and so-called 
systemic risk - the danger that 
the lhHure of a market partici- 
pant might cause -a* meltdown of 
the financial system. 

Some government officials 
believe that the use of derivatives 
may have compounded the 
decline in world bond markets 
that followed the increase in US 
interest rates on February 4. In 
the US, the General Accounting 
Office last month issued a report 
calling for legislation on the use 
of derivatives. 

But Mr Andrew Crockett, the 
BIS general manager, said: “It 
would be a mistake to assume 
that policymaking would be 

Continued on Page 24 
Recovery will fail to solve 
unemployment. Page 6 


Renault to 
build cars 
in Vietnam 


By Kevin Done, 

Motor Industry Correspondent 

Renault, the French state-owned 
carmaker, has signed a letter of 
intent to begin, car assembly in 
Vietnam, which Is viewed as an 
increasingly attractive market by 
Internationa] carmakers. 

The cars will be produced by 
Vietnam Motors Corporation 
from kits supplied by Renault 
from France. Vietnam Motors is a 
joint venture between Columbian 
Motors of the Philippines, which 
bolds a 55 per cent stake; Nichi- 
men Corporation of Japan with a 
15 per cent stake; and a Vietnam- 
ese state company. 

The group plans to produce the 
Renault 19 small famil y car , with 
assembly of Renault’s CKD (com- 
pletely knocked down) kite likely 
to begin in early 1995. 

It already assembles the Mazda 
626 and 323 from kits along with 
some products from Kia, the 
South Korean carmaker. It also 
plans to start assembly of the 
BMW 525 at its plant near Hanoi 
in September. 

Last month, Mitsubishi Motors 
became the first Japanese car- 
maker to enter a joint venture in 
Vietnam. It has received approval 
from the Vietnamese government 
to form a joint vehicle manufac- 
turing and sales venture in 

Continued on Page 24 


Pay policy frozen 
out at alternative 
ice-cream makers 





By Martin Dickson in New York 

The cold reality that top US 
executives demand high salary 
cheques has triumphed over pay 
policy idealism at Ben & Jerry’s 
Homemade, the small Vermont 
company which has grown into a 
leading ice-cream manufacturer 
thanks to its delicious, offbeat 
frozen concoctions and socially 
conscious image. 

The company, which created 
premium ice creams with names 
like Wavy Gravy, Chunky Mon- 
key and Cherry Garcia, said yes- 
terday it was discontinuing a pol- 
icy that its highest paid employee 
could not be paid more than 
seven times the amount of its 
lowest paid employee. 

But the company is hardly 
abandoning its alternative image. 

Launching a search for a chfof 

executive to aid its expansion, it 
said that applicants must explain 
in 100 words “Why I would 
be a Great CEO for Ben &, 
Jerry's." 

The contest, according to Mr 
Ben Cohen, the chairman who is 
giving up the chief executive 
post, will uncover candidates 
who have "both the broad experi- 
ence and gentleness of spirit nec- 
essary to guard and grow the 
company's unique, community- 
focused culture." 


CONTENTS 


Ben & Jerry's was founded in 
1977 with a single ice-cream par- 
lour, based In a converted petrol 
station, by Mr Cohen and Mr 
Jerry Greenfield, its vice-chair- 
man. 

From the start they adopted a 
socially conscious approach to 
business and a personal style 
reminiscent of the 1960s hippie 
movement 

The company donates 7.5 per 
cent of its pre-tax profits to a 
foundation which supports non- 
profit organisations and chari- 
ties. It also makes a point of buy- 
ing some of its ice-cream ingredi- 
ents from socially disadvantaged 
groups. 

The pay ratio limit (originally 
set at five-tobue but changed to 
seven-to-one in 1991) was 
designed to make employees feel 
they were working as part of a 
team. 

The company said yesterday 
the ratio had served it well when 
it was younger, smaller and sim- 
pler. but it had now become a 
barrier bo recruiting experienced 
people. 

Ben & Jerry's had net income 
last year of $7J2m on revenues of 
$l4ten but Mr Chuck Lacy, its 
president and top paid executive, 
earned only $150,000, less than 
many senior executives at busi- 
nesses of this size. 


THE LINK BETWEEN THE PAST 
AND THE FUTURE 


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— rZ arrvn 1994 No 32.382 Week No 24 LONDON - PARIS ■ FRANKFURT - HEW YORK - TO KYO 

gTHE FINANCIAL TIMES L IlurrELI ' — — — — 


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I 



NEWS: EUROPE 


Last-minute hitches 
in EU-Russia pact 


By Lionel Barber 

hi Luxembourg 

Hopes of wrapping tip a new 
political and trade agreement 
between the European Union 
an d Russia hung in the bal- 
ance last night after a series of 
obstacles threatened to delay 
the proposed pact 

Greece, bolder of the rota- 
ting EU presidency, was strug- 
gling to win consensus among 
European foreign ministers to 
keep alive its plan to host Pres- 
ident Boris Yeltsin at next 
week's European summit in 
Corfu. At the Luxembourg 
meeting, ministers were seek- 
ing to respond positively to a 
Franco-German call for the EU 
to agree swiftly on policy 
toward cleaning up Ukraine's 
nuclear industry and meeting 
part-costs of dosing the Cher- 
nobyl reactor. 

The hitches over the EU-Rus- 
sia agreement contrast with 


the speed with which Ukraine 
concluded its own partnership 
agreement with the Twelve. 
President Leonid Kravchuk is 
expected to sign the agreement 
in Luxembourg tomorrow. 

Diplomats said Greece was 
keen to crown its presidency 
with Mr Yeltsin's presents at 
the summit, but problems 
r emaine d over Russia's treat- 
ment of foreign banks and how 
the EU handles Moscow's 
exports of enriched uranium. 

Equally sensitive are Mr 
Yeltsin's demands that he per- 
sonally signs the EU-Russia 
agreement He has refused sim- 
ply to initial an agreement, 
even though Brussels has 
warned the treaty texts may 
not be ready to be translated 
into the requisite 10 languages. 

On foreign banking. Mi- Yelt- 
sin announced a new decree 
last Friday which seemed to 
ease fears that western banks 
would be subject to Russia’s 


strict new capital require- 
ments. But the Dutch, who 
have two banks in Russia, 
want to see proof In writing. 

The picture on uranium 
exports improved after France 
won safeguards for its position 
as a leading supplier to the 
rest of the Union. Portugal, 
with a small uranium industry, 
has sought similar protection. 

Nuclear safety in Ukraine 
will feature high on the a genda 
of the Group of Seven industri- 
alised nations in Naples next 
month. As the outcry over 
Chernobyl has grown, Ukraine 
raised Its asking price to shut 
down the station from ffftm to 
$Mbn (£9.3bn). 

A Commission official said 
the EU was seeking to balance 
its interest in promoting 
Ukraine’s policy toward energy 
self-sufficiency, which includes 
b uilding five new nuclear reac- 
tors, with the need to shut 
down ChemobyL 



The return of British Airways yesterday to Orly airport after a 20-year absence was marred by 
noisy and at times violent protest demonstrations, writes Paul Betts. Some 200 employees of the 
email French inde pendent carrier Air liberty tried to stop passengers from checking in on flights 
operated by BA and Us French affiliate TAT, leading to scuffles and three arrests.They failed to 
stop the four BA and TAT services to Heathrow. >v> 


Role of MEPs in 
Maastricht treaty 
review undecided 


By David Gardner 
in Luxembourg 

European Union foreign 
ministers were split yesterday 
on how closely to involve mem- 
bers of the European Parlia- 
ment in the 1996 constitutional 
review of the Maastricht 
treaty, making it likely next 
week's Corfu summit of the 12 
heads of government win have 
to deal with the issue. 

The parliament In May 
demanded a voice at least 
equal to that of the European 
Co mmissio n tn the 1996 inter- 
governmental conference as 
the price of ratifying the acces- 
sion treaties for Austria, Swe- 
den, Finland and Norway. 

The MEPs won pledges from 
Germany, the Benelux coun- 
tries, the Commission and the 
current Greek presidency of 
the EU, that they would he 
closely involved in the “com- 
mittee of experts” due to start 
work in mid-1995 to prepare 
the review. 

But yesterday, the UK and 
France stuck to the formula 
foreign ministers agreed in 
April at Ioannina, Greece, 
where they also agreed a com- 
promise on the EU voting 


rights dispute, over which par- 
liament had threatened to 
reject enlargement and which 
wffi be at the heart of the 1996 
review. ™ 

Under this formula, MEPs' 
constitutional experts would 
be associated with and could 
contribute to the group, made 
up of foreign ministers' repre- 
sentatives, bnt not be an 
organic part of tti 

“A majority of member 
states would prefer associa- 
tion,” rfflbneri French Foreign 
Minis ter Alain Jupp§, to retain 
their “freedom of manoeuvre”. 

Of the near record 468 MEPs 
present at May's enlargement 
vote, 150 voted to postpone rat- 
ification until parliament 
received cast-iron guarantees 
on the constitutional review. 
When the ratification vote was 
taken, 60 diehards abstained, 
although, they backed EU 
expansion in principle. 

But they they were joined 


ing MEPs, who warned parlia- 
ment could use its powers to 
hold up other EU external trea- 
ties in the future unless Stras- 
bourg was fully involved in 
preparing the EU’s constitu- 
tional arrangements. 


Strength of Austrian vote to join EU takes ‘antis’ by surprise 

Nordic No camp on defensive 


By Hugh Camegy 
in Stockholm 

The strong anti-European 
Union campaigns in Finland, 
Norway and Sweden have been 
put on the defensive by the 
decisive vote in Austria on 
Sunday in favour of EU 
membership. 

"The result took them by 
surprise,” said Mr Arve Thor- 
vik, leader of a group of for- 
mer prominent anti-EU cam- 
paigners in Norway who now 
support entry . 

“A No vote in Austria would 
definitely have had an impact, 
strengthening the No cam- 
paign here. Bat the two- 
thirds majority for the Yes 
side is a vitamin shot 
for us. It shows opinion 


can be turned around.” 

Although the No side trails 
in Finland, where a referen- 
dum will be held in October, 
in Sweden and Norway the Yes 
campaign has a long way to go 
to overturn EU opponents 
before both countries vote in 
November. By then, the Aus- 
trian result wffi be little mare 
fhan a dis tant memory. 

But since Sunday night. No 
campaigners have found them- 
selves in the unaccustomed 
position of having to explain a 
defeat, rather than pursuing 
their hitherto vigorous attacks 
on the EU and the threats they 
say it poses to national inde- 
pendence and democracy. 

Mr Kristen Nygaard, leader 
of Norway's “No to the EU” 
organisation, admitted the 


Austrian resnlt deprived his 
wrnipaign of a boost But he 
insisted: “I don't believe that 
the referendum in Austria will 
have any effect on the Norwe- 
gian EU debate." 

Ms Eva-Britt Svensson, co- 
leader of the Swedish “No to 
the EU” campaign, said that in 
Austria tiie No side lacked a 
strong organisation, unlike in 
Sweden where her organisa- 
tion acts as a national 
umbrella for a broad raige of 
political opinion united by 
hostility to the EU. 

She also claimed that 
extreme right-wing attempts 
to scare voters in Austria into 
voting against membership 
had alienated many people. 

“Here in Sweden we will 
drive the debate in a different 


way, with fa**hnai arguments,” 
she said. “Every country 
makes its own choice." 

In Iceland, meanwhile, Mr Jon 
BaJdvin Hannibalsson, foreign 
minister and Social Demo- 
cratic party leader, said Rey- 
kjavik might apply for EU 
membership by the end of the 
year. 

Such a move would likely be 
determined by whether Fin- 
land, Sweden and Norway - 
with Austria, fellow members 
of the European Free Trade 
Association - derided to join. 
Iceland, also put of the Euro- 
pean Economic Area open 
markets agreement with the 
EU, has hitherto declined to 
seek membership because of 
reluctance to open its fishing 
grounds to Union fishermen. 


OBITUARY 


Jan Tinbergen, 
a father of 
econometrics 


Jan Tinbergen. the 
distinguished Dutch mathe- 
matical economist, socialist 
and pacifist, has died aged 91. 
He won the first Nobel memo- 
rial prize in economics in 1968, 
jointly with the Norwegian 
Rag rmr Frisch, mainly for his 
wuninal work on the applica- 
tion of statistics to economics. 
His work in this area, for the 
League of Nations between 
1 936 and 1938 and published In 
1939, marked the birth of mod- 
mi econometrics. 

Tinbergen brought three fun- 
damental attributes to his 
work in economics and eco- 
nomic policy: his training as a 
mathema tical physicist at Lei- 
den University, bis social ideal- 
ism, and conviction a better 
world could be created by 
applying reason to the 
operations of government Of 
his intellectual power, benevo- 
lence and moral rectitude there 
was never the slightest doubt 
But his faith in the capacity 
and benevolence of the state 
now looks somewhat naive. 

Even econometrics, in whose 
early development Tinbergen 
played so great a part, was 
(and, to an extent, still is) con- 
troversial. The first of his two 
volumes for the League of 
Nations, on fluctuations in 
investment, was reviewed 
quite critically by John May- 
nard Keynes. But Tinbergen 
had the last laugh. His second 
volume presented an economy- 
wide model of business cycles 
in the US. Such models were 
the vehicle through which 
Keynesian economics was sub- 
sequently implemented. 

Today’s economic forecast- 
ing industry owes its existence 
to Tinbergen’s pioneering 
work. He also made substantial 
contributions to the modelling 
of economic growth and theo- 
ries of policy formation, eco- 


nomic development and per- 
sonal income distribution. 

His most important contrfoo* ■ 
tion. after that to economet- 
rics. was the demonstration 
that, in general, the tdrioMK 
meat of a given number of pol- 
icy objectives requires as many 
independent policy instru- 
ments. This conclusion was 
reached in parallel by the Brit- 
ish economist (and Nobri-tn* 
reate). James Meade. 

Tinbergen was bom in The 
Hague on April Vi. 1903, into a 
remarkable family of schobutL 
One of his brothers, NBubat 
(Niko). won the Nobel Prire tor . 
biology in 1973: a n o th e r 
became a professor of rootage 

Tinbergen refused compul- 
sory military service in 183? 
and was sent to work tor 
almost a year as a prison 
administrator and research 
assistant at the official statis- 
tics bureau, the CBS. After 
gaining his doctorate In pbys* 
ics from Leiden in 1929. he 
went back to the CBS. where 
he started research into eco- 
nomic dynamics and statistical 
modelling of economies. After 
leaving the League of Nations, 
he returned to the Nethajv 
lands, staying with the CBS 
until the end of world war two. 

Then, he was appointed bead 
of the newly-established Dutch : 
planning and economic advb 
sory body, the CPB. He 
resigned from the CPB In 1965. 
to become a full-time pro fess or - 
at the University of Rotterdam 
(where he had been part-ttma 
between 1933 and 195 5). In ITO 
he moved to the University af 
Leiden, before retiring in J9& 
He served as an adviser to thi' 
World Bank, the Orgimisatkri 
Iter Economic Co-operation and 
Development and UN bodta. 

Martin Weir 


Ex-Co mmuni sts hail E German poll tally 


By Judy Dempsey in Berlin 


Leaders of the reformed 
communis t Party of Demo- 
afterwards by many other Iead-TjbHQg:wpdalism beltevelheir 


big gains in Sunday’s local gov- 
ernment elections in eastern 
Germany are more than a mere 
blip in the party’s fortunes. 

“We have shown we are a 
force to be reckoned with at 
local level in the east," said Mr 


T^tfhar Bisky, ohairmy n , after 
the party pushed ahead erf the 
opposition Sodal Democrats in 
urban areas. 

— in the northern state of 
Mecklenburg-Vorpommern, the 
PDS won 25 per cent, 6 percent- 
age points more than In 1990; 
in Saxony-Anhalt, which will 
hold its first state elections on 
June 26, it increased its share 
by 7.3 percentage points to 202 



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per cent; in Saxony, the party’s 
tally went up 5 points to 16.7 
per cent; and in the southern 
state of Thmingia.it gained 45 
percentage points to 15 per 
cent 

Three factors account for the 
party's electoral success. First, 
it inherited the local grassroots 
organisation erf the former East 
German Communist party 
which, before unification, had 
2J3m members. With 13L000 of 
them in the PDS today, includ- 
ing 10 per cent who never 
belonged to the old apparatus, 
it has remained active at the 
local level. “That is our great 
strength,” said Mr Bisky. “The 
es tablishe d west German par- 
ties never developed a proper 
grassroots network in eastern 
Germany.” 

Second, for easterners, the 


PDS is seen as a viable social 
democratic party, as Mr Rudolf 
Scharping, head of the Social 
Democrats, has foiled to con- 
vince them that he has policies 
which are ideologically distin- 
guishable from Chancellor Hel- 
mut Kohl's governing Chris- 
tian Democrats. 

“The PDS will simply drain 
votes away from us," said Ms 
Dagmar Szabados, SDP deputy 
mayor of Halle, who was run- 
ning third behind the PDS, 
while the CDU mayor, Mr 
Klaus Rauen, was set for re- 
electioiL 

Third, the PDS is seen as 
tmsere. or "our” party, as PDS 
voters repeatedly explained on 
Sunday. "We are not commies. 
We are not hardliners. We are 
east German democratic social- 
ists, despite what the wessi 


[west GermanJ politicians say," 
said Mr Bisky. 

These factors make life diffi- 
cult for the SPD. Although it 
increased its share of the vote 
in the east, it will only be able 
to dislodge four of the five 
CPU-dominated state govern- 
ments with the help of a coali- 
tion with the Greens and the 
PDS. 

“We cannot join with the 
PDS. It would be unaccept- 
able,” said Ms Szabados. “The 
only solution is that Scharping 
gets his act together.” 

The SPD has less than two 
weeks to turn the tables in 
Saxony-Anhalt, and four 
months in the other states. The 
recent confidence boost for the 
PDS will make their struggle 
even harder. 


THE FINANCIAL TIMES 
Subtotal toy Tin Fwweial Time* 

GmbH. N fccton p rrp hte j. bQJIS I 
am Man. German-.. Tdqdwae ♦♦W Q 156 
SJ8. Fax ++49 «* S%W*t. Td « 4 WTO. 
Rcpreieatod n Fwnkfart toy j. Waist Bnit 
WiBtdm t. BriwcL Cota A. Komari m 
GcsdUlbfiUtrcr anl tot London toy Dtril 
G.SL Befl and Alu C. Mttr. Priaw. DW 
Dmk-Vcnncb and Marietta* GnML 
Adminl-RoscndaU- Sirana 5*. 65 Mr 
Ncu-Ifttabarf <o*ecd toy HArtim 
bfenotaMaO. BSN: CBN UWM 
RetpoanMc Editor Ricjurd Lwstoqt. cfo Ttoc 
Financial Timat Liamed, 
Number Ooa Scwthnrfc Brifa London SHI . 
9HL, UK. ShuctaUcn of dm Hnadal Than . 
(Europe) GmbH a nr The Faunas) Trisa 
(Europe! LbLUadua tod F.T. (Gcnu«J 
Admitting) Lid. London. ShanfaUcr of M 
above mentioned two companies w Tka 
Fiaancial Times Limited. Nibs bet One 
Soaitawi Brid|c. L on d on SEl 9HL. Til 
Company b moorowued under the kwtxtf 
Eq^udand Wales. Ckumum: D.C.M. HI 

FRANCE 

Director D. Good. M Ran de. 
Rhofi. F -r ' 

■GVWK11. 

Not'd Ector. 

Roubau Cedes I. Editor Rkbmd LatoetL. 
ISSN: ISSN 1148-275}. Comma Ptotott 
No ffftOSD. 

DENMARK. 

Fwunai Tima (Scandinavia) Ltd. Vtoianl 
**fted -OA, OK-(J61 GmentogaK. Ttofe- 
phoae 33 13 44 41, Fax 33 93 S3 3S. 



INTERNATIONAL ECONOMIC INDICATORS: PRICES AMP COMPETITIVENESS 

Yomly Agues mi shown h Max tarn wRh Dm cownan base year of 1835. The rad ex c hange rata Is an Mm throughout other quarterly and monthly figures show the perewo to g e ■ 
change over the oonwpanding period In the previous year end an positive unless otherwise stated. 


■ UNITED STATES 


■ JAPAN 


■ GERMANY 



He —or 
V*m 

ftadbnr 

price* 

We* 

net 

War 

rait 

(■ton 

Mar 

price* 

- . 

IM 

trier 


1965 

1004) 

100.0 

1004) 

1000 

1000 

100.0 

1004} 

1000 

1002 

1002 

1986 

101 2 

98 2 

1022 

99.4 

rwg 

10045 

953 

101.4 

1004 

1183 

1087 

105.6 

100.7 

10341 

98.7 

702 

1012 

925 

103.1 

1006 

1222 

1088 

109J8 

1032 

106.3 

99.1 

714) 

1022 

923 

1073 

962 

1312 

1989 

1153 

1025 

110.0 

101.1 

74.8 

1049 

942 

1142 

96.1 

1205 

I960 

121.5 

1134) 

113-8 

104 2 

73.4 

1022 

95.7 

1201 

883 


1991 

128.6 

1103 

117^ 

107 2 

7442 

11U 

963 

1242 

1013 

114.7 

1992 

130 A 

117.7 

1202 

108.1 

742 

1132 

96.8 

1253 

1112 

1183 

1903 

134.3 

1122 

1204 

1005 

708 

1153 

943 

1253 

1183 

1342 

2nd qtr.1993 

32 

20 

22 

-22 

75-7 

14) 

-1.4 

07 

53 

1302 

3rd qtr.1983 

2.8 

0.7 

22 

-26 

702 

13 

-13 

04 

4.4 

140.7 

4th qtr.1993 

2.7 

043 

3J0 

-34) 

707 

13 

-21 

-0.1 

5.1 

137.6 

1st qtr.1B9* 

2JS 

02 

3.0 

-12 

77.0 

1.4 

-22 



1373 

June 1993 

34) 

1 2 

22 

-27 

709 

14) 

-IS 

-09 

S3 


July 

22 

12 

22 

-25 

772 

12 

-1.7 

-12 

SA 

136.7 

August 

22 

02 

22 

-22 

75.9 

2.0 

-13 

23 

23 


September 

2.7 

04 

22 

-27 

75.4 

13 

-24) 

12 

53 

1393 

October 

22 

02 

22 

-2.9 

75J0 

13 

-21 

03 

73 


November 

2.7 

(M 

3.3 

-22 

774) 

09 

-21 

1.7 

04 


December 

2 A 

02 

3 2 

-as 

77 2 

13 

-22 

-1.1 

42 


January 1994 

22 

02 

25 

-1^ 

77 A 

1.4 

-2.1 

42 

42 


February 

22 

02 

32 

-1.4 

774) 

1-4 

-23 

13 

5.1 

130 4 

Wtercti 

22 

02 

3 2 

-20 

704 

13 

-23 




April 

2.4 

-04 


-23 

705 

08 





Mqy 


-OA 



752 

06 




1393 


■ PRANCE 




■ ITALY 








u* 

M 







Cmniii 



Wn 


Cenaw 






men 

priBM 

Mriqs 

<nM 

tSa 

prim 

prim* 

W*n*«e« 

CM 

in* 1 

1985 

1004) 

100.0 

1000 

1000 

1000 

100.0 

1000 

1004) 

1000 


1988 

102.6 

97-2 

1044) 

101.5 

103.4 

106.1 

1003 

1043 

102.7 


1987 

1055 

9743 

107.8 

103.0 

1048 

111.0 

1032 

111.8 

106,6 

1022 

1988 

108-8 

1023 

111.1 

1044) 

1022 

1105 

1083 

1104 

109.7 

1002 

1989 

112.6 

1004 

115.4 

1003 

99a 

1243 

1121 

125.6 

1122 

1032 

1990 

1165 

107.1 

1206 

1094) 

1032 

1313 

1173 

134.7 

1183 


1991 

1202 

1054) 

1252 

ma 

1022 

1403 

121.7 

1473 

131 3 

1062 

1992 

123.1 

104.Q 

1303 

1108 

1052 

147.7 

1244) 

1552 

1363 


1903 

125.6 

101.1 

133.7 


109.5 

1533 

128.7 

1612 

138.4 

873 

2nd qtr.1993 

20 

-32 

na. 

22 

109.7 

4.1 

33 

3.1 

2.6 

88.4 

3rd qtr.1993 

22 

-3.4 

IUL 


1005 

43 

43 

4.1 

2.1 

872 

4th qtr.1993 

2.1 

-22 

fLJL 


107.7 

4.1 

3.9 

32 

-14 

85.7 

let qtr.1904 

1.7 

-145 

nj. 


107.5 

42 




85.1 

June 1993 

1J9 

oa. 

26 

tUL 

1094) 

42 

4.1 

4.1 


90.1 

My 

21 

oa. 

— 

flA. 

109.7 

4 A 

42 

4.1 


88.7 

August 

22 

iul 

- 

IUL 

105.4 

4A 

4.4 

4.1 


872 

September 

22 

nA 

23 

02 

1075 

42 

43 

42 

ft*. 

872 

October 

22 

aa. 

- 

UL 

107.4 

43 

4.1 

32 


806 

November 

22 

nJL 

- 

nJL 

1074) 

42 

3.9 

32 


852 

Perairthw 

21 

tua. 

22 

aa. 

1005 

4.0 

3.7 

06 


84.7 

January 1994 

14) 

oa. 

- 

02 

1075 

42 

33 

42 


85.1 

Febnusy 

14) 

oa. 

- 

02 

1009 

42 

33 

42 


862 

March 

15 

rua. 

20 

02 

107.9 

42 




642 

Apr8 

1 J 

no. 

- 

oa. 

1006 

4.1 




873 

May 

12 

rui. 

- 

02 

107.4 

4.0 



ft* 

873 


100.0 

99.9 

100.1 

101.4 

104.2 

107.0 

110.7 

115.1 

119.8 


1004) 

97.5 

952 

802 

99.3 

101.0 

103.4 

1049 

104.8 


100.0 

1033 

108.0 

1134) 

117.3 

1233 

131.8 

138.6 


100.0 

103-8 

107.1 

1009 

108.0 

1103 

115.0 

121.5 

125.3 


loon 

107.4 

-non 

1102 : 

107.8 

1107 

108.1 

loan 

1102 


42 

42 

3.7 

an 


-02 

-on 

-02 

on 


no. 

no. 

mo. 

ft*. 


5.4 

1A 

-1.7 


(008 

1008 

TOKO 

107.1 


42 

42 

42 

42 

3.9 

3.6 

3.7 
05 
3.4 
3 2 
3.1 

2.9 


-4M 

-on 
-02 
-0 2 
-02 
-02 
- 0.1 
0.0 
02 
03 
0.1 


a 2 

3 2 

on 

14) 

on 

-22 

-24) 

-05 

-S4J 


1084) 

loan 

1084) 

itm 

m.i 

109J8 

1094). 

10741 

1084) 

107.4 

1082 

107.4 


■ UNITED KINGDOM 


IM 


1000 

1004 

107.7 
1134) 

121.8 
1303 
1412 
148.4 
148.7 


1000 

101.4 

104.9 

108.7 

113.9 
121.0 

127.5 

131.5 

138.7 


100,0 

107.7 

118.3 

1202 

137J 

1501 

1B2v4 

173.1 

1809 


1000 1009 

104.1 044! • 

108.8 - 049 

1094) 10W 

114.4 torn ■ 
122.7 1029 

1319 1089 

1344) 1089 

134 2 9S-7 


13 

d.0 

50 

-03 

1.8 

43 

4.4 

1.1 

12 

32 

32 

1.7 

04 

33 

4.8 

22 


059. 

97.1 

97.1 

989 


1 2 
19 
1.7 
19 
19 
1.4 
19 
29 
2 A 
29 
29 


4.0 

49 

49 

49 

4.0 

39 

44) 

07 

04 

29 

22 

29 


49 

59 

3.6 

49 

3.8 

49 

4.0 

49 

4.4 

02 


1,2 

0.7 

OB 

1.7 

2.0 

19 

(9 

1.7 

1.9 

29 


95.1 
97.4 
973 
909 
963 

97.1 
079 
999 
983 
WA 
979 
9U 


Statetka far Germany apply oriy to wawtain Bennany. Data suppfed toy Dmaetraam and WEFA from naMencl aoi mn .i— j «t a* — — ' 

prices: not seaaonaly adfuatad. Produear prleam not seasonally adfwtad, US - finished goods. Japan - matKSrtjrodiaootalGBrmim^MutSwirewSSr'i 4 "* 

floods. Paly — total prothicer pricea. UK - inanufatataeti preducta EanthW se aaonady adjusted, refers to tarin^n manurtmtiainn 7 ^*y**^ ? 

Industry). Hasty accept 4apat fritortWy) and IK taaaldy). Unk labour costasoeso nafly aflmg ad, measured in 

countries * mtoufeaurtng Mrnay. M aschange raw J? Morgan *4 *e Max ** 

wMaaate price ef domestic manufactures. A tail in the Max Mtcataa bnprt'M httamaHanst ctimpeWvaness. owray cuienoas. aqustad for duum* tot 


7 


CT Of 

°«ictri cs 




EUROPEAN NEWS DIGEST 


Payment due 
on Schneider 

Crafitore °f the Jflxgen Schneider property group can expect 

since 0,6 went bankrupt in April, 
tne Frankfurt state prosecutors' office said yesterday. The 
Genmn officials said that on a visit to Geneva last week they 
had found documentary proof that DM245m (£88m) of the 
property group’s funds had been moved by Mr Jtogen Scfanei- 
“® r bis wife Claudia, They said the money had been 
transferred in fete March to Switzerland via London the 
B aha m as shortly before the couple’s disappearance triggered 
Germany’s biggest property crash in decades. Of the DM245m, 
an but DM15m was likely to be av ailab le to meet 
creditors claims , the Frankfurt officials said yffp te r dff y The 
DM23Qm has been frozen by the Geneva prosecutors' office for 
some weeks p ending an inquiry into possible money-laun- 
dering offences. The DM15m was transferred out of Geneva 
accounts in late March and has not yet been traced. 

It is thought likely that Mr Schneider manag ed to transfer 
other cash, perhaps as ranch as DMTSOm in total, from Ger- ! 
many in March before he went on the holiday to Tuscany from 
which he never returned. A warrant hag been issued for his , 
arrest on fraud charges but his whereabouts are still I 
unknown, although the mass circulation Bild newspaper 
suggested yesterday that he is living in a villa in the Iranian 
city of Isfa han . The newspaper claimed that Mr Schneider 
bought a DMl4m villa there last year in aasnriatinn with Mr 
Mehdi Djawadi, an Iranian friend and business associate 
i arrested earlier this month on suspicion of Hrip frn g him trans- 
fer funds abroad ahead of his flight. David Waller, Frankfurt 

Dutch rail dispute deadlock 

A train strike in the Netherlands thwwten« to go into a wnnfi 
day today after management and unions faffed to resolve their 
conflict about the proposed loss ctf 470 jobs. The management 
of state-owned Dutch Rail, which wants to eliminate jobs 
among drivers and conductors as part of a wider reorganisa- 
tion plan, has refused to meet the rmirm« again while the 
stoppages continue. The Dutch rail system ground to a virtual 
halt yesterday with the exception of a few local train services 
in the east and south of the country. International train 
services into Belgium and Germany ware also cancelled. Yes- 
terday’s 24-hour strike followed stoppages during the mnming 
rush hour last Wednesday. Remold van de Erd, Amsterdam. 

Move to impeach Iliescu 

Romania’s mam opposition party yesterday started unprece- 
dented moves to impeach President Ion Iliescu for violating 
the country’s constitution. Hie National Peasants Party said it 
had begim to collect signatures needed for a motion In parlia- 
ment to impeach the president an the grounds that he tried to 
pervert the course of justice and to undermine the indepen- 
dence of the judiciary. The party is basing its case on state- 
ments Mr Iliescu made last month in which he urged local 
courts not to re tu rn property nationalised under the Commu- 
nist regime to former owners. Parliament which is dominated 
by Mr Diescu’s supporters, is not expected to approve the 
motion, the first of its kind in post-Communist Romania. Hie 
move coincides with anti-government demonstrations planned 
today by leading trade unions calling for higher pay and fester 
reform. Virginia Marsh, Bucharest 

Russian troops for Abkhazia 

Georgia’s leader, Mr Eduard Shevardnadze, yesterday said the 
deployment erf Russian peacekeeping forces in the breakaway 
s region , of Abkhazia .in western Georgia would begin on 

Wednesday and Thursday- President Boris Yeltsin signed a 
decree last Thursday ordering deployment of the forces, but it 
has yet to be approved by the Federation Council, the upper 
house of the Russian parliament, which could take up the 
issue today. Associated Press, Tbilisi 

Brcko attack condemned 

The UN yesterday condemned Sunday’s rocket attack on a 
Serb-held town of Brcko in northern Bosnia where several 
civilians were wounded. In a separate incident at the weekend, 
British troops came under mortar and small-arms fire in 
central Bosnia. However, UN officials said the country- wide 
truce agreed last week appeared to be holding. Commander 
Eric Chaperon, the UN Protection Force spokesman in Sara- 
jevo. said fighting continued to decrease substantially over the 
weekend, ‘indicating continuing compliance with at least a 
spirit of the cessation of hostilities agreements’’. Hie UN’s 
special envoy to the former Yugoslavia, Yasushi Akashi, 
described the firing of rockets at Serb-held Brcko as “repre- 
hensible". A statement released from UN headquarters in 
Zagreb said the rockets were fired from the nearby Orasje 
pocket, where Bosnian, Croat and Moslem units are deployed. 
Hie Bosnian Serb commander, General Ratko Mldic, warned 
of retaliation if the attacks continued. Paul Adams, Belgrade 

Energy treaty talks succeed 

Negotiations ou a treaty to open up the former Soviet energy 
sector to western business have proved successful EU officials 
said yesterday .The main aim is to provide better investment 
protection. The treaty gives legal force to the political declara- 
tion signed by heads of government three ye ars a go. The 
i agreement follows several months of argument over how far 
’ CIS countries woald be prepared to guarant e e equal treat ment 
for western and national companies wanting to invest in their 
energy sector. The text of the treaty will next be submitted to 
governments for approval with a view to signing it in Septem- 
ber or October. Emma Tucker, Brussels 

economic watch 

Wholesale prices edge upward 

Western German wholesale 
Oannaiw ' prices climbed 0.5 per cent in 

'May from April and rose l_l 
Wbotesate prices (annual ftchango) pgr cent from April 1S&3, the 

2 J 5 — — federal statistics office said 

__ A... . yesterday. Most economists 

. f_\ • ' . had expected a month-on- 

1.5 -J‘-\ ~~ a month rise of only 0.2 per 

Mi . m- cgnt ^ a year ^ n .y ear 

05 — 1 — r-~ — increase of 0.7 per cent. The 

• o' _ — J May figures also represent an 

. I ......... mhmi. acceleration from the previ- 

y* It f ous two months. In April the 

-7,0 - \ - I V ■ index for wholesale prices 

-1.5 Ym / T ~ rose Oil per cent In the month 

-an — y r -V— ■ and 05 per cent in the year, 

^5 i — — — *- f. in March, the index climbed 

"1992 93 ** only 0.1 per cent in the month 

soutok Damstraam ' • .- and (12 per cent In the year. 

Analysts attributed the increase to rising conmodfty and dl 
prices that were not offset by the weaker dollar m the month. 
Some of the biggest month-on-month price gains Mine directly 
from commodities; a 23 per emit jump m coffee pric®, 55 per 

cent m fruit prices, 4.4 per cent m pigs for slaughter, and 3 per 

cent in grains. Associated Press, Wiesbaden _ __ 
u Switzerland's industrial production in the first qu arter r ose 
7 per cent from the same period In 1993,. the government 
statistics office announced yesterday. Incoming orders rose 10 
per cent in the same period, with business from abroad up IS 
dm 1 cent and orders from domestic customers up 6 per cent. 

■ Hie offi ci al Swedish unemployment rate decreased to7J 
per cent in May from 7.4 per cent in April .and was down from 

^percentmMayimaa»n^too^^n^_ 

■ Norway’s trade surplus m May fell to NKr458to t£448m) 

comSrt* with NKr&TSbn ^ 

earlier, acconffog to the country's statistical 

■ Austrian building output rose nearly a flftti in the first 

per cent to Sh21hn <£L9bn) the central 

statistics office said. 


Grande idee - shame about the building 


By Aficg Ra w sthom in Paris 


First there was 
the French 
assault on “US 
cultural imperi- 
alism” during 
last year’s 
world trade 



EUROPEAN 

DIARY 


negotiations; then came 
rumours of a Hollywood boy- 
cott of tiiA ftniTiM FUm Festi- 
val; now the French are back 
on the offensive in a row over 
the American Centre, lat- 
est incantation of the cultural 
institute that has since the 
1930s been a mecca for intellec- 
tually-inclined Americans in 
Paris. 

Even the most chauv inis tic 
members of the French intelli- 
gentsia have failed to find fault 
with the aims of the new cen- 
tre, which opened last week as 
a vast cultural complex includ- 
ing a theatre, language school 
art gallery and artists' studios. 
It is, after all an Icon of fran- 
cophilia and, as such, conforms 
completely to the Gallic defini- 
tion of an intelligent arts insti- 
tution. 

Instead the arts establish- 
ment has vented its wrath on 
the new building, which was 
designed by Frank Gehry, the 
Los Angeles-based architect. 
The New York Times hailed 
his design as a “love poem” Le 
Figaro, the conservative 
French daily, disagreed “We 
expected a great deal from the 



The American Centre in Paris: Frank Gehry’s love poem*, or an American ‘Bgrade work* reserved for France? 


first major Flench project of 
this great expressionist. And 
we’ve been sadly disap- 
pointed,” grumbled Francis 
Rambert, its architecture 
critic. 

The crux of the criticism is 
that Gehry, who has achieved 
international acclaim for his 
“urban jungle” buildings in 
Los Angeles, reflecting the 
chaos of the city through frag- 


mented forms and Hashing col- 
ours, has fobbed off the French 
with a watered-down version of 
his Californian work. 

“Jeez, what do they want 
from me? 0 groaned the archi- 
tect, who paid a flying visit to 
Paris for the opening. “I know 
what it is - a jumble of every- 
thing I’ve already done in LA 
But 1 did all that stuff in the 
context of Los Angeles. This is 


Paris. I did not want to rebuild 
LA here. That would have been 
terrible!" 

The American Centre is an 
understated building, at least 
by the standards of Gehry. who 
once designed a Venice Beach 
office block as a giant pair of 
binoculars. The main facade is 
an explosion of different 
shapes which, he said, were 
inspired by “those wonderful 


jumbled roofs you see when 
you really look at Paris", 
although he has softened the 
cacophonic effect by psing 
classic French sandstone os his 
main material. The soft curves 
and seductive skylights of the 
interior are Gehry’s homage to 
Rondhamp, the Le Corbusier 
chapel in eastern France, 
which is one of his favourite 
buildings. 



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Even this tribute to France's 
architectural heritage (the 
French prefer to forget that Le 
Corbusier was born in Switzer- 
land) has failed to placate the 
critics. H We might ask why so 
many great contemporary 
architects seem to save their 
B-grade work for France?” 
sniped Le Figaro. 

France has historically 
prided itself ou its cosmopoli- 
tan attitude to the arts: not 
least on its appreciation of the 
finer aspects of US culture, 
from the jazz of Miles Davis 
and Charlie Parker, to the 
experimental drama for which 
the American Centre was 
famous in the 1 960s. 

Yet this cosmopolitanism 
was founded on an unques- 
tioned confidence in the 
strength of France's own cul- 
tural credentials. That confi- 
dence has been dented by the 
economic and social turmoil of 
recent years. Jacques Toubon, 
the centre-right arts minister, 
has responded with a string of 
protectionist policies - from 
his anti American stance at the 
General Agreement on Tariffs 
and Trade negotiations, to his 
clampdown on Franglais. 
Gehry is the latest victim of 
France's cultural insecurity. 

He has had plenty of practice 
in the firing line. His 
uncompromising style has few 
fans in the US public sector. 
“They don't even think I'm fit 
to build a dog kennel.” he 
says. 


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i-^xiuviriAt TIMES TUESDAY JUNU 14 1994 



Diesel 

maker 

China 


By Andrew Baxter 

Perkins Group, the UK-based 

diesel engine producer, yester- 
day announced a long-term 
partnership agreement which 
will see its engines produced in 
China for the first time. 

The UK company, part of 
Varity of the US, has signed a 
technology transfer contract 
under which two of its engine 
families will miter volume pro- 
duction at Tianjin Engine 
Works in eastern China. 

Perkins sees the agreement 
as a big breakthrough in 
China, the world’s fastest- 
growing diesel engine mar ket. 
The 10-year agreement with 
Tianjin, one of China’s leading 
diesel en gine manufacturers, is 
expected to lead to a joint ven- 
ture deal 

Mr Tony Gilroy, chief execu- 
tive of Perkins, said the agree- 
ment was “a very important 
step in developing our pres- 
ence in China and is part of 
our increasing focus on south 
and east Asia”. 

A “vast potential” existed for 
Perkins engines throughout 


engine 

forms 

link 


nhiwa and the company was 
committed to becoming the 
leading independent manufac- 
turer of diesel engines in China 
in partnership with Tianjin, he 
added. 

The contract covers Perkins’ 
Phaser automotive engines and 
its 1000 Series industrial range. 
The first units will be assem- 
bled and tested in Tianjin early 
next year and fmwiiai produc- 
tion could reach 120,000 
engines by 2000. 

Mr Miao Jianxin, a director 
of Tianjin, said the agreement 
with Perkins provided China 
with a framework to develop 
its diesel pu cttia industry at a 
vital stage in its economic 
progress. “It will offer custom- 
ers a new range of high-tech- 
nology products, and boost the 
local economy." 

The agreement with Tianjin 
Engine brings to 12 tho num- 
ber of countries where Pe rkins 
diesel on girms are built. Per- 
kins already has close UtiTtk 
with India and Indonesia Tian- 
jin Engine employs 7,000 peo- 
ple in Tianjin, China's third 
largest city. 


New hope for clothes makers 

Canute Janies on the Caribbean welcome for US tariff plans 


C aribbean garment pro- 
ducers have greeted 
with relief proposals by 
the US government to remove 
t ariffs and quotas on their 
exports to the US, allowing 
them to compete freely with 
Mexican products. 

The announcement of the US 
plans by Mr A1 Gore, the 
vice-president, follow a period 
of signffiwmt growth for the 
Caribbean industry, with the 
region now the largest single 
source of US dothing Imports. 

The administration's propos- 
als will be discussed by US leg- 
islators, and follow several 
months of appeals by Carib- 
bean governments for mea- 
sures to protect their US mar- 
kets, not only for apparel, from 
Mexican competition. Most 
Caribbean Basin governments 
fear that the implementation of 
the North American Free 
Trade Agreement (Nafta), 
would enab le Mexico to cap- 
ture valuable markets which 
the less efficient Caribbean 
producers had developed in the 
US and Canada. 

In M n ri Qwrnring the p \fln« for 

Caribbean Basin clothing 
imports, Mr Gore said the 
administration would ask Con- 
gress to approve the removal of 
all tariffs and quotas on tactile 
and clothing imports from the 
24 countries which are benefi- 
ciaries of the Caribbean Basin 


Initiative. This trade pro- 
gramme, implemented 10 years 
ago by the US government, 
allows designated countries to 
ship some products duty free 
to the US. However, garments 
and textiles were excluded 
from this after pressure from 
the US industry which feared a 
flood of cheap imports. 

"I am convinced that thts ini- 
tiative wfil accelerate eco- 
nomic co-operation and growth 


bly programme. This allows 
to be assembled in 
the region from fabric made 
and cut in the US, and re-ex- 
ported to the US with duty 
paid on the value added in 
assembly. 

The fears of losing U5 mar- 
kets to Mexico led Caribbean 
Basin governments, with the 
support of some US legislators, 
to ask the Nafta partners for 
“ parity " with Mexico in access- 


I am convinced this initiative 
will accelerate economic 
co-operation — A1 Gore 


in the Caribbean region as well 
as in the United States,” Mr 
Gore said. 

Caribbean producers whose 
exports are valued at S4bn 
(£2.6bn) per year, and whose 
industries provide 400,000 jobs 
in a labour surplus region, 
have welcomed the US govern- 
ment's proposals. "This Is a 
very positive development," 
said Mr Peter King , chairman 
of file Cent ra l Amarira^ and 
Caribbean Textile and Apparel 
Council, a regional lobby group 
for the industry. 

Most of the region's apparel 
exports to the US are produced 
under the 807 offshore assent- 


ing the US an d, Canadian mar- 
kets. Regional trade officials 
say the US administration’s 
proposals for the garment 
industry are a welcome indica- 
tor that other sectors of Carib- 
bean industry may be treated 

similar ly. 

Mr Paul Robertson, Jamai- 
ca’s foreign trade minister, 
said: "While this proposal on 
the garment industry does not 
constitute the Nafta parity for 
Caribbean Basin countries 
which the region had asked 
for, it represents an enhance- 
ment by access to 

the US mariat for tpytflp and 
appareL 


"This is a step in the right 
direction and we hope that the 
proposed programme is 
open-ended and represents a 
transition to foil participation 
in Nafta." 

The growing importance of 
the clothing sector to the 
Caribbean *««« been under- 
scored by recent figures from 

the Textile and Apparel Coun- 
cil. in the year to March the 
Caribbean Basin countries 
overtook major producers such 
as China and Taiwan to 
become the leading source oT 
OS imports. 

Caribbean Basin exports to 
the US in the year were valued 
at S4.1bn, representing 14.1 per 
cent of all US imports, the 
council said. Hong Kong’s 
share was 13.4 per cent, Chi- 
na’s 12.1 per cent, and 
Taiwan's 7.6 per cent The lead- 
ing Caribbean Basin exporter 
to the US in the year to March 
was the Dominican Republic, 
with exports valued at $L4bn. 

There is, however, one dark 
cloud on the horizon, said Mr 
King. Si gnificant quantities of 
garments, mainly from Asia, 
are labelled as being of Carib- 
bean origin, and are either 
being shipped through the 
region or sent directly to the 
US. “This illegal trade can do 
more damage to the Caribbean 
Basin industry than can any 
high tariff wall," said Mr King. 


L 


t is comforting to entrust one's assets to a Geneva private banker. 


. • •• •* ' - ■ . • • : • 
: . .-■■*«* . . . i: ,•» •.! t ■ ■ . . * i • ■* • , i 


-• "\ 



Geneva is a leading 
ial centre kncram for 
international banking 
expertise and, 
for 200 years, its private 
bankers have focused on 
asset management. 
They like to establish 
durable person-to-person 
relationships and their close 
involvement in investment 
decisions is profoundly 
reassuring to their clients. 



Geneva's Private Bankers 

Liberty * Independence • Responsibility 


In Geneva: 

BORDER & Cie - DARIER HENTSCH & Ge - LOMBARD ODER & Ge - MEABAUD & Gc - PICTET & Cic 
( 1844 ) ( 1796 ) ( 1798 ) ( 1819 ) ( 1805 ) 


Fjipha WinnrrtivTjfikTrfrrtrtifiiine*1fiTT'f wi— Huy— ****"-' , ‘^ 

I laiml w 


BAe to discuss 

rocket system 
with Pinochet 


By Jimmy Bums 

British Aerospace said 
yesterday it planned to have 
this week in the UK with 
General Augusto Pinochet, 
Chilean aimed forces chief and 
former president, on the devel- 
opment of an artillery rocket 
weapons system. 

A spokesman for Bae said 
last night: "We are aware that 
General Pinochet is in the UK. 
and it is assumed that he will 
be in conversations with us. 
There is considerable Chilean 
interest in this system which is 
potentially worth millions of 
pounds to us.” 

The potential research and 
development contract involves 
a -flexible" rocket system 
which can be produced for use 
either by wheeled or tracked 
vehicles. 

The system would be jointly 
developed with the Chilean 
defence industry by the rockets 
division of BAe’s subsidiary. 
Royal Ordnance. It is under- 
stood the Chilean army is 
interested in producing the 
system locally. 

Britain has good diplomatic 
relations with Chile, and has 
largely ignored protests over 
General Pinochet's human 
rights record following the 
strong support offered by the 
Chilean armed forces to the UK 
during the Falklands War. 

While stressing that there 
were no official or ministerial 
contacts involved, the foreign 
office said last night “We have 
good relations with the Chil- 
eans and we see no reason why 
there there should be any prob- 
lem in General Pinochet visit- 
ing this country." 

However, Amnesty Interna- 
tional confirmed it was asking 
Sir Nicholas Lyell. Britain's 
attorney-general, to prosecute 



Uruguay Round 
talks ‘still far 


from complete 


By Tim Coone In Dublin 

The achievement of the 
Uruguay Round of global trade 
talks “is still far from com- 
plete" and European Union 
leaders must treat its ratifica- 
tion with urgency, Mr Peter 
Suther l and, director-general of 
the General Agreement on 
Trade and Tariffs, said in Dub- 
lin yesterday. 

Addressing a meeting of the 
EU economic and social com- 
mittee, he said Europe had "a 
responsibility to give leader- 
ship on ratification” by the 125 
states that signed the Gatt 
agreements in Marrakesh in 
April 

This had to be given as much 
priority "and political energy 
and commitment” as the con- 
clusion of the negotiations 
themselves. 

Th e W orld Trade Organisa- 
tion (WTO) which will replace 
Gatt, is due to be established 
by January 1, 1985 under the 
auspices of the Uruguay Round 
agreement, and will have 
stronger powers and proce- 
dures than Gatt to enforce the 
liberalised trade arrangements 
which now ^attend to agricul- 
ture, services, textiles and 


Forge Europe 
ties, US urged 


By Nancy Dunne in 

Washington 

US preoccupation with export 
expansion in Asia-Pacific 
should not detract from efforts 
to make new ties with Europe, 
which shares most strongly OS 
views of the future of the 
world economy, a new report 
says. 

"If the US is to inflmm-P sig- 
nificantly the rapidly emerg- 
ing new global economy. It 
win need allies," say Mr Clyde 
Prestowitz. a former US trade 
negotiator, and Mr Robin Gas- 
ter, a prominent trade consul- 
tant, in "ShrmUng the Atlan- 
tic: Europe and the Amwiian 
Economy. 

While Asia has become the 
biggest US grass export mar , 
feet, tiie content of the trade is 
still a concern. Unlike trade 
with Europe, the US tends to 
exchange raw materials for 
nigh technology goods from 
Asia. 

“Despite transatlantic trade 
rows in teleeo mw^n j mHons, 
aircraft and computers, 
Europe remains a prime 
e*POrt market in each indus- 
try; the US trade balance with 
turope is strongly positive in 


mu, the report said. 

After Britain, Japan b the 
second largest investor in the 
US, but its investment is slow- 
ing "drastically- while Euro- 
pean investment is expected to 
increase. 

Many more European com- 
panies manufacture in the US 
than do Japanese. European 
companies paid S7bn in corpo- 
rate income taxes in 2990; 
Asian companies paid only 

5100m. . 

European companies invest 
about $7bn in research and 
development in the US, com- 
pared to $500m for Aslan com- 
panies. 

The report calls on North 
America and Europe to open 
exploratory talks about broad- 
ening and deepening their 
relationship, resolving their 
differences on su ch issues as 
labour policy, competition pol- 
icy and regulation. 

_ "Sh rinking the Atlantic' 
Europe and the American Ecqt> 
orny. a Economic Strategy bnsti- 
tute, 1100 Connecticut AttC 
Suite 1300, Washington 
D.C £0036. North Atlantic 
Research Inc., 1701 ilst St 
N.W. #100. Washington, O.C 
20009. 


General Pinochet roiwfctumlib 
Chilean interest : 

General Pinochet under toe 
Criminal Justice Act wfefcfc 
obliges the UK to purao* 
alleged torturers. 

The office of the Attorney 
General said last night" It 
would “look carefully" at any 
evidence from Amnesty inter- 
national that linked General 
Pinochet to cases of torture 
allegedly carried oat by 
the Chilean secret service. • 

Amnesty lawyers looked art 
to pursue their action attar 
hearing that General Pinochet 
had arrived secretly in London 
over the weekend. On Sunday, 
surrounded by bodyguards, ht 
attended a church service cat 
memorating D-Day atthe 
Jesuit church of Fans Street te 
London. 

The Chilean Embassy con- 
firmed General Pinochet was 
in London on a "private vtett*. 
but with the approval of the 
Chilean government 


5 i 


intellectual property rights. 

Implementation of the Uru- 
guay Round agreements “wifi 
reward those who have 
embraced competition as an 
ally with improved opportuni- 
ties to compete in the festestr 
growing markets in the world 
- the upper-income developing 
countries". 

He said a larger share of EU 
exports to third countries want 
to developing countries “than 
to North America and Japan 
put together”, and that these 
bad the fastest-growing econo- 
mies "and the greatest reserves 
of unfulfilled demand". 

The Uruguay Round would 
not only make these markets 
more accessible, but greater 
access to EU markets for devel- 
oping countries’ products 
would in turn further drive a 
growth in demand for EU: 
goods and services. 

He stressed that exporters 
would be better able to protect 
their brand nnmo and image 
under the new rules on intel- 
lectual property rights. .Better 
protection would enable them 
to develop new markets "with 
more confidence that they an 
not just offering counterfeiters 
and pirates a free ride”. 






‘‘“'K 


FINANCIAL TIMES TUESPAV JUNE 14 1994 


WM 

•fcTCSIv 



siuav Ron 


s s 


n CO!!!pte 


Clinton to launch 
welfare reform plan 


By George Graham In 
Washington 

President Bill Clinton will 
today present his plan to “end 
welfare as we know it," an 
ambitions blueprint for over- 
hauling the US benefit system 
in a way intended to encourage 
and force people to move off 
the dole and back into the 
workforce. 

The plan, which has been 
under consideration si nct ? Mr 
Clinton took office a year a nd a 
half ago, is built around a two 
year limit on payments nnrier 
aid to families with dependent 
chil dren, the mam us we lfare 
programme, which currently 
supports around 5m families. 

Mr Clinton is due to outline 
the plan in a speech in 
City, Missouri After the two 
years of AFDC «»gh payments 
are exhausted, most recipients 
unable to find a job would be 
required to enrol in a one-year 
government work programme. 


Unlike some proposals circu- 
lating in Congress, the Clinton 
plan would allow people to re- 
enrol repeatedly in these pro- 
grammes, so long as they con- 
tinued to look for work and did 
not turn down a job offer. A 
Republican plan would permit 
states to cut off people still job- 
less after three years in a gov- 
ernment work programme. 

The idea of indefinite work 
programmes has caused con- 
siderable debate. Some critics 
fear it will create an 
open-ended government jobs 
programme, leaving many fam- 
ilies still dependent on a gov- 
ernment dole even if they are 
required to do some work in 
exchange for their benefits. 

Adminis tration nffiniais said 
Mr Clinton had decided it 
would be wrong to cirt off peo- 
ple “playing by the rules” and 
genuinely looking for work. 

The decision raises financing 
problems for the overhaul, 
since there is little reliable 


hasis for es timating how many 

people will still be unable to 
find jobs after two years of 
cash benefits and another cou- 
ple of years in a government- 
sponsored work programme. 

In all, the Clinton welfare 
plan is expected to cost about 
S9-5bn over five years -about 
half the cost of a “Cadillac ver- 
sion" proposed earlier by a 
White House task face. 

Besides the government- 
sponsored work schemes, costs 
would include expanded train- 
ing programmes and the provi- 
sion of child care to help low 
income parents go to work. 

After Mr Clinton ruled out 
any new tax, the White House 
has focused on financing the 
reform by restricting benefits 
to non-citizens, by cutting off 
disability payments to drug 
and alcohol abusers and by an 
accounting change allowing 
money to be drawn from the 
Superfund, which pays for the 
clean-up of toxic waste dumps. 


Independents struggle to enter Senate race 

Democrats tackle North 


By George Graham 

Virginian voters in a 
Democratic party primary elec- 
tion win choose today a candi- 
date to face the Republican 
nominee Mr Oliver Noth for a 
seat in the US Senate. 

Incumbent Senator Chuck 
Robb is generally expected to 
sweep the primary, but the real 
race wifi be elsewhere as inde- 
pendent candidates battle to 
gather enough nominating sig- 
natures to get their names on 
the ballot for November. 

By the time the polls close at 
7 pm (11 pm GMT), Mr Dougins 
Wilder, Democratic former gov- 
ernor of Virginia, and Mr Mar- 
shall Coleman, Republican for- 
mer state attorney-general, 
must present rinrarnignbi with 
about 15,000 signatures, includ- 
ing at least 200 from each Con- 
gressional district in the state. 

Their independent candida- 
cies are expected to be crucial 
in an election where neither of 
the main party candidates has 


President BUI Clinton and his 
wife Hilary have been inter- 
viewed by the independent 
prosecutor Mr Robert Fiske 
about the Whitewater contro- 
versy over their personal 

financial affairs, inchirfhip the 
death last year of the White 
House aide Mr Vince Foster, 
the White House said yester- 
day, Reuter repots from Wash- 
ington. 

Mr Lloyd Cutler, White 
House counsel, said Hi at the 
Clintons had answered Mr 
Fiske’s questions under oath 
at the White House on Sunday 
afternoon. 

wide support Mr Robb, once a 
rising star of the Democratic 
party, has been tarnished in 
the eyes of many voters by bis 
sexual peccadilloes. His 
acknowledgment of a naked 
massage, but nothing more, by 
a beauty queen has entered the 
comic lexicon of US politics 
with President Bill Clinton's 


insistence that, yes, he had 
smoked marijuana but did not 
inhale. 

Many ardent Republicans are 
expected to vote for him today 
in the primary, in the belief 
that he is the candidate Mr 
North can most easily defeat 

Mr Robb could lose many 
votes, especially among the 
mostly Democratic Mark Vir- 
ginians, to Mr Wilder, the first 
African-American elected a 
state governor since the Recon- 
struction period immediately 
after the Civil War. 

Mr North was a central fig- 
ure in the Iran-contra scheme 
to send arms to Iran in 
exchange for the release of US 
hostages held in Lebanon. That 
damaged President Ronald 
Reagan’s later years in office. 
Mr North commands fervent 
adoration from the mostly 
right-wing and religious 
Republicans who nominated 
him, but deep distrust from 
almost everyone else, includ- 
ing many centrist Republicans. 


NEWS: THE AMERICAS 

Haitian 
refugee 
ships off 
Jamaica 

By Canute Janes In Kingston 

Two US ships on which 
Haitians will be questioned 
about their requests for asy- 
lum in the US woe anchored 
just outside the harbour of 
the Jamaican capital at the 
weekend. 

But there is still no indica- 
tion when the operation will 




US officials say that Haitians 
fleeing their country for the US 
will still be returned home. 

The USS Comfort, a thou- 
sand-bed hospital ship, and the 
Gruziya, a chartered Ukrainian 
cruise ship, will be the first 
processing centres off Jamaica, 
under the new US policy to 
give Haitians seeking asylum a 
hearing to determine the valid- 
ity of their claims. 

There is no definite date for 
starting the migrant process- 
ing centre, said Brig-Gen Mich- 
ael W ill iama who is heading 
the operation. “Until such time 
that all arrangements have 
been completed, the US will 
continue to repatriate all Hai- 
tians interdicted at sea and 
encourage Haitians to go to 
one of three processing centres 
already in Haiti as the safest 
way to process their claim to 
refugee status," he added. 

When the operation begins, 
Haitians intercepted at sea will 
be taken to the Comfort, two 
miles outside the entrance of 
Kingston harbour, where they 
will be medically tested and 
photographed. 

After questioning, Haitians 
not accepted as refugees will 
be returned to Haiti. Those 
“determined to have a legiti- 
mate status as refugees" will 
be sent to Kingston airport, 
flown to the US naval base at 
Guantanamo in Cuba, and then 
taken to the US, Brig-Gen Wil- 
liams said. 

The use of the ships to pro- 
cess Haitians’ claims followed 
criticism of the US policy of 
returning all Haitians inter- 
cepted at sea. The volume of 
Haitian boatpeople heading for 
Florida has grown since the 
overthrow and exile of Mr 
Jean-Bertrand Aristide. Haiti’s 
elected president, in 1991. 



President Clinton and Emperor Akihito of Japan inspected a guard of honour for the latter’s visit to Washington yesterday »s- 

Mexico peace plan Cuba close to 
starts in south telecoms sale 


By Ted Barctaeka 
in Mexico City 

The Mexican government will 
begin unilaterally to imple- 
ment the local economic pro- 
grammes proposed in its peace 
offer to the Zapatista rebels in 
Chiapas, despite their over- 
whelming rejection of the plan 
at the weekend. 

Efforts to try to implement 
the programmes, aimed at 
improving the lot at the indige- 
nous people in the impover- 
ished southern state, will be 
made in areas not under rebel 
control 

The move is seen as an 
attempt to show the Zapatistas 
that the government is serious 
about making good on its 
offers, as well as to isolate the 
rebels from potential support- 
ers in surrounding areas. 

The rebels are already in a 
very weak position militarily, 
virtually surrounded by the 
Mexican army which has been 
ordered to reinforce its patrols 
in the area. 

In rejecting the govern- 
ment's peace offer and seeking 
a new round of talks, the Zapa- 
tistas said their main concern 
was that their national 
demands for a democratic tran- 


sition in the country had not 
been met. Since the beginning 
of negotiations, the govern- 
ment has said such issues 
would be taken up not with 
armed insurgents but with the 
country's political parties. 

A recent overhaul of the 
nation's electoral system, 
spurred by events in Chiapas 
but negotiated by the govern- 
ment and political parties in 
Mexico City, seems not to have 
satisfied the Zapatistas. 

The problem of the rebels is 
thus unlikely to be resolved 
before the national elections in 
August, as the two sides 
appear to disagree on the basic 
issue of how much say the 
insurgents should have over 
issues of national scope, princi- 
pally democracy. 

“We still do not have defini- 
tive accords, but the ceasefire 
has been consolidated and the 
commitment to search for a 
political decision in favour of 
peace is maintained,” said Mr 
Manuel Camacho Solis, the 
government's peace negotiator. 

However, the government 
has foiled in one of its main 
objectives - to disarm the reb- 
els before the elections - and it 
will be up to the next president 
to grapple with the problem. 


By Ted Bardacke 

Grtrpo Domes, a Mexico-based 
holding company, is dose to 
finalising a deal to bny >19 per 
cent of Emtelcuba. Cuba’s tele- 
phone monopoly, for about 
$l-5bu Ultra). 

This would be Cuba’s first 
important privatisation since 
the 1959 revolution and would 
be in the context of rapidly 
growing business between 
Mexico and Cube. 

The deal is likely to include 
a concession to operate the 
telephone system in Cuba and 
an ambitious modernisation 
plan. 

The length of the concession 
and its price are stiR being 
negotiated. Company officials 
said the deal was being dis- 
cussed yesterday daring a one- 
day visit to Havana by Presi- 
dent Carlos Safinas de Gortari 
of Mexico. 

He is being accompanied on 
his trip by Mr Javier Garza 
Calder6n, leader of Grnpo 
Domes and a member of the 
wealthy Garza family of Mon- 
terrey in Mexico, which has 
interests in such industrial 
giants as Visa. Femsa and 
Bancomer. 

Mr Garza Calderdn was a 


bidder for Tel me x when the 
Mexican government priva- 
tised Us telephone monopoly 
in 1990. 

He did not win on that occa- 
sion but has maintained his 
group’s interest in telecommu- 
nications, until recently oper- 
ating cellular-phone services 
in northern Mexico. 

The Cuban telephone system 
that Domos would purchase is 
even more antiquated that the 
Mexican network it once tried 
to buy. Fewer than five In 
every 100 people in Cuba have 
telephone lines and as many 
as half of those lines arc not 
functioning at any one time. 

However, Domes is betting 
that negotiations between 
Cuban and US officials will 
open a lucrative long-distance 
calls market between the two 
countries beyond the current 
limit of 300 calls per day. 

Even with the limit, those 
and other international calls 
generate hard-enrrency 
income of an estimated $2m 
per month for Cuban Telecom- 
munications. 

Other Mexican companies 
are operating in Cuba, in tour- 
ism, textiles, cement, cellular- 
phones and oil exploration, 
among other areas. 


Exports limp behind while the rest of Peru strides out 

After almost four years of sweeping economic reform, one vital sector stubbornly stands out in its failure to respond, writes Sally Bowen 


T he export sector contin- 
ues to be the Cinderella 
of Peru’s buoyant econ- 
omy. In the almost four years 
since the administration of 
President Alberto Fujimori 
embarked on its sweeping pro- 
gramme of deregulation and 
structural adjustment, exports 
have stubbornly failed to 
respond. 

Exports were, in feet, stag- 
nant throughout the 1980s, 
never coming close to match- 
ing the record $3.9bn in 1980. 
What has changed is their 
make-up: “non-traditional" 
exports (mainly finished and 
agro-industrial products) have 
gradually gained in importance 
while traditional exports (min- 
erals, oil, sugar, cotton and 
fishmeal) have fallen to 67 per 
cent of last year's estimated 


total valty! of $3.4bn. 

The sluggish performance 
reflects in part Peru’s vulnera- 
bility to international raw 
materials prices. And while the 
economy enjoyed the protec- 
tion of high tariffs - until early 
1991 - the balance of trade 
remained favourable. 

But three years of fastgrow- 
ing, mainly consumer-driven 
imports have sunk Peru's trade 
account into deficit and the 
gap this year will be wider 
than ever. Even Mr German 
Suarez, president erf Peru’s cen- 
tral bank, baa pihnit t ^ l the def- 
icit will almost certainly be 
well above the $569m 
enshrined in the 1994 “letter erf 
intent" currently pending 
approval by the International 
Monetary Fund. 

This year's economic pro- 


gramme, to an even greater 
extent than hitherto, stresses 
control of inflation - it should 
not exceed 20 per cent this 
year, down from 39.5 per cent 
in 1993. The exchange rate, 
meanwhile, will cont i n u e to 
float but money supply targets 
win remain tight The central 
bank will not sacrifice these 
targets in order to intervene on 
the foreign exchange markets. 

AH of which is had news for 
Peru's already hard-pressed 
exporters. In the past 12 
months, the Peruvian sol has 
appreciated by almost 14 per 
cent against the dollar - half 
of that in the first five months 
of this year. 

Mr Francisco Raffo’s modern 
Textil San Cristobal factory in 
Chincha is just the sort of 
operation that Peru should be 


ItaifD balance ($bn) 


'BUfqcacMt 



2j> J 1 1 1 ■ > 

isfio SO 91 99 83 94* 

Sown* ^'-American Oowtapmn* San* 

encouraging. Built at a cost of 
$10m four years ago, it pro- 
duces top-quality cotton knits 
for some of the world’s most 
demanding customers, includ- 


ing Adidas, Nike and Reebok. 
Sales last year -about 90 per 
cent exported - topped $24m. 

San Cristobal trades on 
Peru's natural advan- 
tages - world class raw materi- 
als in its Pima and Tanguis 
cotton and an inexpensive but 
skilled labour force. Machinery 
is the most modem available 
and efficiency is high. “But 
even having cut costs to the 
bone, we barely turn a profit," 
says Air Raffo. 

Although exporters publicly 
demand government interven- 
tion to “improve” the exchange 
rate, most of them privately 
a dmi t this is unlikely under 
the free market economic poli- 
cies to which the Fujimori gov- 
ernment is committed. Action, 
however, could be taken on a 
number of other fronts to 


reduce excess charges and 
“anti-technical” taxes, they 
say. 

First, they want a full tax 
“drawback" scheme on the 
grounds that “taxes should not 
be exported”. Currently, 
exporters can reclaim locally- 
applied value added tax, 
though the system is unwieldy 
and refunds slow to come 
through. 

Exporters, however, enjoy no 
“drawback” on the high inter- 
nal tax levied on fuel products. 
The economy and finance min- 
istry claims the scheme is too 
complex to administer. Mr 
Raffo reckons his energy costs, 
at $100,000 a month, are three 
times those of Latin American 
competitors. 

Peruvian businesses are also 
hammered by a series of sup- 


posedly “emergency" tax mea- 
sures, in force until fiscal 
reforms and a broadening of 
the taxpayer base is achieved. 
One is a minimum 2 per cent 
tax on assets, paid monthly 
and offset as an Income tax 
credit if the business turns in a 
profit Lossmakeis forfeit the 
tax entirely. 

Businesses must now also 
bear the entire brunt of the 
housing fond contribution Fon- 
avt in effect a 9 per cent pay- 
roll tax. And, despite the 
decline in terrorist attacks, 
security costs remain a heavy 
burden on Peruvian busi- 
nesses. 

The government argues that 
exporters have benefited sub- 
stantially from a series of 
structural reforms, including 
the slashing of import duties. 


port handling and transport 
costs. 

While admitting that cus- 
toms efficiency has improved, 
exporters complain that proce- 
dures remain cumbersomely 
bureaucratic. 

“We’re now competing in a 
global marketplace with coun- 
tries like Taiwan and Korea, 
and we simply can’t afford 
these delays," says Mr Raffo. 

The yawning trade deficit 
this year may, however, force 
more derisive moves to deepen 
the partly completed foreign 
trade reforms. 

"IT the gap between imports 
and exports approaches Slbn 
this year, which is perfectly 
likely, then the government 
will have to take steps to 
improve conditions for export- 
ers," predicts Mr Raffo. 


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nMANr.AL TIMES TUESDAY WNK U iW4 

NEWS: INTERNATIONAL _ 


Abu Nidal 

follower 

claims 

Lockerbie 

bombing 

By Marie Meholaon in Cairo 

A P alestinian follower of Abu 
Nidal, one of the world's most 
wanted terrorists, claimed in a 
Lebanese court yesterday be 
hims elf had caused the bomb- 
ing in 1988 of the Pan Am 
flight which exploded over 
Lockerbie, Scotland, killing 270 
people. 

Mr Youssef Shabaan, 29, 
made the rfafrn during his trial 

On charges Of a« 3 «m ati ng a 

Jordanian diplomat in Beirut 
earlier this year. Mr Shabaan 
dent es this charge, but told the 
court: M I personally blew up 
the Lockerbie plane.” He 
added: Tve told the investiga- 
ting magistrate about it before, 
but my confession wasn't docu- 
mented. I say it again now.” 

The claim would appear to 
cloud further the already 
murky Lockerbie saga, with 
which various countries and 
organisations have at one time 
or another been associated. 
These include Libya. Iran, 
Syria and a Damascus-based 
Palestinian group led by Mr 
Ahmed Djibril. 

The focus of official US and 
British investigations fafai the 
bombing remains fixed on 
Libya, where sanctions have 
been applied since 1992 for 
Tripoli’s refusal to hand over 
for trial in Scotland or the US, 
two security agents blamed for 
bombing flight 103. Neverthe- 
less, a British foreign office 
spokesman said Mr Shabaan ’s 
apparent confession would be 
investigated. 

Previous research has tended 
to distance Abu Nidal’s group 
from the Lockerbie bombing. 
In his 1992 book Abu Nidal: A 
Gun for Hire, author Mr Pat- 
rick Seale says the “world’s 
most notorious Arab terrorist” 
whose real name is Sabri el- 
Banna, had “no connection” 
with the Lockerbie bombing. 
But he nevertheless cites one 
of Abu Nidal's associates as 
quoting the guerrilla leader 
saying: “We do have some 
involvement in this matter, but 
if anyone so much as mentions 
it, l will kill him with my own 
hands.” 

However, Mr Seale records 
Abu Nidal's “more outrageous 
lies” as mclu d iug improbable 
claims to have caused the 
Brighton bombing in 1984 and 
the fire at Bradford City foot- 
ball ground in 1985 in which 
scores of fans died. 

Abu Nidal's Fatah Revolu- 
tionary Council split from the 
Palestine Liberation Organisa- 
tion’s mainstream Fatah wing 
in 1973 and is believed to have 
been behind, scores of terrorist 
acts in the 1970s and 1980s, 
including an assassination 
attempt on Israel’s ambassador 
to the UK in 1982 and the 
slaughter of 16 people in a 
shooting at Rome airport in 
1985. He Is wanted in at least 
20 countries. 

Abu Nidal’s whereabouts are 
also a puzzle. He is believed to 
have left Damascus for Tripoli 
in 1986, has been linked with 
Iraq, but the US state depart- 
ment last year cited reports 
that his group bad found sanc- 
tuary in Sudan. Just five days 
ago Colonel Muammer Gadaffi, 
Libya's leader, claimed he 
thought Abu Nidal had died. 
Quoted by the state news 
agency, Col Gadaffi said: “1 
believe he Is not alive because 
I have appealed to him (to 
visit} and be didn't come.” 

• Mr Samir Geagea, leader of 
the Lebanese Forces militia 
during the country’s 17-year 
civil war, was yesterday 
charged with involvement in 
the February bombing of a Bei- 
rut church in which li people 
were killed white at prayer. Mr 
Geagea's deputy, Mr Fouad 
Malek, and six other members 
of the LF were also indicted by 
a Lebanese prosecutor who has 
been investigating the bomb- 
ing. All the accused lace a pos- 
sible death penalty if con- 
victed. 

The indictment claims that 
one of the accused had direct 
contact with an Israeli intelli- 
gence officer before the bomb- 
ing. 


BIS wary of direct curbs on derivatives 

Philip Coggan on the bank’s reports as its annual meeting gets under way in Basle 


C entral banks should be 
wary of direct control 
of toe growth of new 
financial instruments such as 
derivatives, the Bank for Inter- 
national Settlements argues in 
its 1993-94 report, published to 
coincide with its annual meet- 
ing in Basle yesterday. 

But Mr Andrew Crockett, 
BIS general manager, writing 
in the report’s conclusion, 
says: “There is no inherent rea- 
son why the greater freedom to 
transact in capital markets 
should, in general, make prices 
more volatile. If anything, 
more depth and liquidity in 
markets, and a greater ability 
to disaggregate exposures and 
hedge unwelcome risks should 
reinforce the stabilising prop- 
erties of markets.” 

While the BIS does not want 
to see direct controls on these 
markets, it does believe -as 
Mr Alan Greenspan, US Fed- 
eral Reserve chairman, argued 
last week - that they should be 
carefully monitored. 

“Any official action should 
be (Erected at improving the 
ability of market participants 
to exploit the advantages of 
new instruments without jeop- 
ardising their own financial 
soundness or the stability 
of the financial system 


more widely,” the report 
says. 

Mr Crockett said yesterday. 
*T don’t think that, administra- 
tive or restrictive controls are 
the right way in which to 
reduce the potential volatility 
that, it has been alleged, can 
be introduced by derivatives 

markets.” 

Mr Wim Duisenberg, BIS 
president, said financial mar- 
kets must be strengthened. 
“ Positions or trading strategies 
which may appear reasonable 
from the perspective (of an 
individual firm) can be a 
source of difficulties when 


aggregated across agents." 

In toe case of d erivatives . Mr 
Duisenberg said clearing house 
arrangements which guard 
against risk for exchange 
traded Instruments have 
proved extremely difficult to 
extend to the over-the-counter 
markets. Furthermore, Mr 
Duisenberg said, further work 
is needed to improve settle- 
ment systems, particularly 
those relating to fatw i mtinnai 
transactions. 

The Basle Committee on 
Banking Supervision, for 
which the BIS is the secretar- 
iat, is working on a guidance 


paper for bank supervisors on 
the control of the risks arising 
from derivatives activities. The 
committee is also studying the 
models used by individual 
hawfes to monitor risk. 

Mr Crockett warned banks 
should be careful when dealing 
with non-fin an rial groups. 
Referring to recent problems at 
companies such as Metallge- 
sellschaft, he said: “Banks 
must be very careful in selling 
products to unsophisticated 
large users. They must also 
take fully into account the 
credit risk of dealing with non- 
bank uses." 


The BIS also calls for further 
study into the way that the 
growth of derivative instru- 
ments may have affected the 
response of the economy to pol- 
icy changes by toe monetary 
authorities, such as move- 
ments in interest rates. “The 
extent to which such changes 
in behavioural response call 
for adaptations in how central 
banks implement policy is 
unclear, but it is a question 
that deserves, and is the sub- 
ject of, further investigation as 
these markets continue to 
grow." 

In essence, however, the BIS 


believes instability is more 
likely to arise from failures in 
government and central bank 
policy, than from new financial 
instruments. 

-What capital market inno- 
vations demonstrate is the 
need for stable monetary poli- 
cies, implemented in a medium 
term framework,” says the 
report “If market participants 
have confidence in the 
medium-term environment for 
investment decisions, then 
these decisions are more likely 
to contribute to stability and 
less likely to have disruptive 
consequences.” 


RECOVERY ‘WILL FAIL TO SOLVE UNEMPLOYMENT’ 


Even a sustained recovery to industrial 
ec o n o mies wQl fail to solve the 
problem of unemployment the Bank 
for International Settlements warns 
in its annual report writes Philip 
Coggan. 

The BIS takes the free-market line 
that “a large proportion of the labour 
force will remain unemployed unless 
action is taken to ii 18 ^ labour m ar kets 
more flexible, especially in Europe”. 

Mr Andrew Crockett general 
manager of the BIS, said: “The purpose 
of the financial and economic system 
is to serve social goals: growth and 


employment foremost among them. 

“If Hw wwimniff amt financial 

system is not succeeding in delivering 
foil employment we cannot be 
satisfied. 

“The danger is that people will reach 
for the most obvious solution: to 
expand aggregate demand." 

In the annual report the BIS argues 

high unemployment is dne to 
“s t ru c tural rigidities that prevent 
toe labour market from functioning 
efficiently. 

“Legal or other arrangements, 
originally designed to protect workers 


in employment, have turned against 
those without jobs.” 

The bank is not very optimistic that 
the problem can be easily solved. 
“Unfortunately for the prospects of 
achieving reform, existing 
arrangements are often backed by 
a strong social consensus,” the report 
adds. 

“There seems to be little alternative 
to a patient gg planatimi of economic 
cause and effect as a means of 
pr ep aring public attitudes for the 
changes wf a nwnti a l if lacKng progres s 
is to be made in tackling the evil of 


unemployment.” 

More immediately, the Bank argues 
that progress could be made by scaling 
back employers’ social security 
contributions and other non-wage 
costs which may constitute a 
disincentive to take on labour. 

Although the bank feels that toe 
current unemployment rate of 11.5 
per cent in European countries is 
partly cyclical. It warns that “even 
on the most favourable estimates, 
some 7-8 per cent of hard-core or 
structural unemployment would 
remain after a cyclical recovery". 


Improving business confidence 
lifts Nikkei index to 21,552 


Tokyo shares at 
two-year high 


By Emfko Terazono in Tokyo 

The Tokyo stock market hit a 
new two-year high yesterday 
as investors were encouraged 
by positive economic data and 
positive comments over an 
early recovery by leading 

financial offic ials 

The Nikkei index of 225 lead- 
ing shares rose 157.63 to 
2L552EL the highest since Feb- 
ruary 1992. Heightened opti- 
mism towards the economy 
helped the index break a psy- 
chologically important 21,000 
level last week, improving con- 
fidence among both institu- 
tional and retail investors. 

Yesterday’s rise follows the 
release of the Bank of Japan’s 
quarterly business survey last 
Friday which indicated an 
improvement in sentiment 
amo ng managers for the first 
time in five years. 

Mr Yasushi Mieno, governor 
of the central bank, yesterday 
said before a parliamentary 
committee that there seemed 
to be a high possibility the 
economy had moved a step 
toward recovery. 

While cautioning that cur- 
rency movements and stock 


adjustment among manufac- 
turers still needed monitoring, 
Mr Mieno said interest rates 
were sufficiently low for com- 
panies to start capital invest- 
ment He also er pM -ts income 
tax cuts worth Y5,500bn 
(£35bn) to help recovery. Simi- 
lar views were aired by Mr Jiro 
Saito. vice finance minister, 
although he refused to “declare 
with confidence that the 
economy will head toward 
recovery”. 

Such economic optimism 
hurt Tokyo bond prices yester- 
day, as investors switched 
funds from bonds to stocks. 
And although the two-week 
rally has started to make some 
investors anticipate a correc- 
tion, most are expecting the 
downside to be limited. “We 
haven't had big jumps In the 
market and volumes have been 
encouraging,” says Mr Jason 
James, strategist at stockbro- 
ker James CapeL 

Since many banks and indus- 
trial companies still bold large 
amounts of shares in their 
investment portfolios, the rise 
to share prices Is in turn expec- 
ted to have a positive effect on 
business sentimen t 


Murdoch cut BBC 


to please 

By Raymond Snoddy 

Mr Rupert Murdoch, chairman 
of News Corporation, has 
finally admitted that he kicked 
BBC World Service Television 
off his Star TV system in 
Asia to please the Chinese 
government and help estab- 
lish the satellite service 
there. 

In an interview with Mr Wil- 
liam Shawcross, author of a 
Murdoch biography, for 
Esquire magazine, Mr Murdoch 
conceded he bad perhaps taken 
the action “a bit too easily 
because of my feelings for the 
BBC”. 

Mr Murdoch also argued that 
it was pointless doing any 
broadcasting in Asia except in 
local languages. But he 
accepted that those arguments 
did not meet toe mate criti- 
cisms that had been made of 
Him in an editorial in the Inter- 
national Herald Tribune. 

"There’s no answer to it. 
They say it’s a cowardly way, 
but we said in order to get in 
there and get accepted, well 


China 

cut the BBC out.” said the 
News Corporation chairman. 

“I was well aware that the 
freedom fighters of the world 
would abuse me for it I think 
my credentials are good 
enough to be able to see me 
through that mu But I don’t 
want to do it through the 
medium of the BBC,” Mr Mur- 
doch added. 

The BBC agreed to go off the 
northern beam of the Star TV 
system which covers Hong 
Kong, China, and Taiwan 
before its contract ran out at 
the end of this year. In return 
News Corp was able to 
negotiate an extension into 
1996 to keep its service 
on the southern beam 
covering the Indian sub-conti- 
nent 

hi a speech in London last 
September Mr Murdoch spoke 
of how advances in technology 
“have proved an unambiguous 
threat to totalitarian regimes 
everywhere". 

It was an argument that 
dearly impressed the Chinese 
government 



South African President Nelson Mandela (right) at his first Organisation of African Unity summit as president, turns to talk to 
Z amb i an President Frederick Shfloba at the beginning of toe OAU meeting in Tunis Mr 


France, South Africa and Egypt 
‘supplied Rwanda massacre arms’ 


By Leslie Crawford in Nairobi 

France. South Africa and 
Egypt may have aided the 
slaughter of Tutsi civilians in 
Rwanda by providing weapons 
and military training to the 
Rwandan army and its mili- 
tias. according to secret mili- 
tary documents obtained by 
Human Rights Watch, a non- 
governmental organisation 
which monitors the observance 
of human rights. 

Human Rights Watch 
believes the massacres, which 
have claimed more than 
200.000 lives in just over right 
weeks, were systematically 
planned for mouths in advance 
by extremists among the 
majority Hutu ethnic commu- 
nity. 

Hardline elements of the 
Rwandan military, unhappy at 
toe prospect of sharing power 
with Tutsi rebels following the 
rad of a three-year dvil war, 
armed and trained paramili- 
tary militias as they qnng bt to 
delay the implementation of a 
peace agreement signed in 
August last year. 

While firearms were distrib- 
uted to Hutu militia known as 
Interahamwe (“Those Who 
Attack Together”), a private 
radio station with close links 
to the government broadcast 


hate-filled propaganda against 
the Tutsi community, which 
make up 15 per cent of Rwan- 
da’s population. 

When United Nations sol- 
diers arrived to monitor the 
Rwandan peace agreement. 
General Romeo Dallaire, the 
Canadian commander, says 
hand grenades could be bought 
in market stalls for a dollar. 
Once the slaughter began, fid- 
lowing the death of President 
Juvenal Habyarimana in an air 
crash on April 6. hand gre- 
nades were thrown into 
schools and churches that bad 
given refuge to Tutsi civilians. 

Militia leaders urged their 
members to fan out across the 
country and finish toe nettoy- 
age (cleaning up) of Tutsis ami 
Hutu opponents of the Haby- 
arimana dictatorship. “The 
death of President Habyari- 
mana was the pretext for 

Hutn extremists from the late 
president’s entourage to 
launch a campaign of genocide 
against , the Tutsi," Human 
Rights Watch says. 

“ Mili tia and military con- 
tinue to make nightly visits to 
stadiums, church compounds 
and other locations were peo- 
ple at risk have taken refuge," 
it continues. “They remove 
groups of people to be exe- 
cuted. Anyone who is educated 


or has shown capacity for lead- 
ership is targeted for elimina- 
tion.” 

Two reports published by the 
human rights group are partic- 
ularly embarrassing for 
France, Rwanda’s long-time 
military patron. Human Rights 
Watch says France provided 
weapons, armoured cars and 
helicopters, as well as military 
advisers and up to 680 troops 
to help toe Rwandan govern- 
ment fight the rebel Rwandan 
Patriotic Front (RPF). 

In addition. Human Rights 
Watch obtained confidential 
documents concerning a $6m 
(£4m) Egyptian arms sale to 
Rwanda which included land- 
mines and plastic explosives, 
automatic rifles, long-range 
artillery and rocket launchers 
of the kind that are now 
pounding the capital Kigali. 
Under toe agreement, Rwanda 
was to obtain a bank guarantee 
from a “first class interna- 
tional bank” and pay the $6m 
into an Egyptian government 
account held at a London 
branch of Credit Lyonnais, the 
stateowned French bank. 

Mr Olivier Perrain, a spokes- 
man for Ctedit Lyonnais, yes- 
terday confirmed the existence 
of the account but said his 
institution had not provided 
the bank guarantee. “Credit 


Lyonnais took no part in the 
transaction.” Mr Perrain said. 

Another invoice obtained by 
Human Rights Watch shows 
that South Africa’s Armscor 
was also selling weapons to the 
Habyarimana government dur- 
ing Rwanda's civil war. Mr 
Tielman de Waal, Armscor 
general manager, says the 
sales stopped in October last 
year, when the war had offi- 
cially ended. 

Less can be proved about the 
EPF’s military sourcing. The 
RPF claims to have captured 
arms from the Rwandan gov- 
ernment and bought others on 
the open market. Less credibly, 
it claims to have stolen weap- 
ons from toe Ugandan army, to 
which many Rwandan exiles 
belonged. 

Major Paul Kagame, the 
RTF’s top military commander, 
was Ugandan President Yoweri 
Museveni’s chief intelligence 
officer before launching his 
own rebel movement. And 
despite repeated denials, it is 
an open secret in Uganda that 
Mr Museveni allowed the 
Rwandan rebels to use Ugan- 
dan territory as a sanctuary 
for the planning of attacks, 
stockpiling of weapons and 
movem ent or troops. 

•> AprihMuy 1934. gtrf Amm 

Sm*t, London HI. F» QH-T 13 ltXX} 


Acid rain 
pact to 
be signed 
in Oslo 


By BronvwHi Maddox, 
Environment Correspondent 


Officials from more than 38 
European and North American 
countries, meeting in Oak* «t 
expected today to sign 
for-reaching pact to curb add 


ram. _ 

Mr Thorbjoern Bernt*«a,. 
Norway’s environment minis- 
ter, warned the agreement,, 
reached after n year of tortu- 
ous negotiation, “will net solve 

the problems, hut it’s a step In 
the right direction". 

The new protocol, part of an 
international “umbrella** con- 
vention covering air pollution 
which crosses national bourn* 
aries. aims to curb emission* of 
sulphur, one of the main com- 
ponents of acid rain. Acid rain 
is thought to damage plants 
and fish and eat away at build- 
ings. 

The deal has been controver- 
sial because sulphur is emitted 
mainly by coal-fired power sta- 
tions. and curbs require conn- 
tries either to switch energy 
sources or fit expensive filters 
to power station chimneys.' 

The new deal, worked out by 
toe United Nations Economic 
Commission for Europe, which 
covers most of western and 
eastern Europe together with 
North America, has broken 
with precedents by setting 
individual targets for each 
country based on how much 
pollution wildlife and plants, 
can withstand before being 
damag ed. 

It replaces a 1985 protocol 
under which all signatories 
pledged to cut sulphur emis- 
sions by 3D per cent from 1980 
levels by the end of 1993. 

Britain. Poland and Spain, 
which contribute a large part 
of the 20m tonnes of sulphur 
spewed into the European air 
each year, and which declined 
to sign the earlier protocol, are 
expected to sign today. 

US officials, who are attend- 
ing the meeting, will not sign. 
However, they have argued 
that their environmental stan- 
dards, while based on different 
criteria, are as strict as the 
Oslo cuts. 

Under today’s agreement, 
Germany feces the biggest cut - 
of 87 per cent compared to 1980 
levels by 2005 - which it plans 
to achieve largely by moderni- 
sing noxious plants in eastern 
Germany. Britain will pledge 
to cut sulphur emissions by 80 
per cent on 1980 levels by 2010, 
mainly by switching to gas 
from coal at power stations. 

Greece will agree to curb 
emissions by just 4 per cent as 
its soil contains high levels of 
calcium, which neutralises sul- 
phur, and so suffers less dam- 
age. 

Environmental groups 
Friends of the Earth, Green- 
peace and the World Wide 
Fund for Nature, in a joint 
statement yesterday criticised 
tire protocol as “inadequate to 
stop acidification”. 


Arafat’s offer 
on Jerusalem 

Mr Yassir Arafat. Palestine 
Liberation Organisation chair- 
man, has told Israel in a letter 
the issue of Jerusalem should 
be oil the agenda for now. 
according to an Israeli newspa- 
per yesterday, Reuter reports 
from Jerusalem. 

The daily Haaretz said the 
PLO leader had sent three 
letters to Mr Yitzhak Rabin. 
Israeli prime minister, reaf- 
firming hi& commitment to 
peace and proposing a hxQ in 
weeks of bickering over the 
status of the holy city. 

Mr Rabin confirmed to Israel 
Radio he had received three 
Arafat letters but refused to 
detail their contents, but said: 
"They don’t touch on anything 
but the agreements and certain 
difficulties as described by 
Arafat among the Palestinian 
population in the territories.” 

In the letters, according to 
Haaretz, Mr Arafat proposed 
direct dialogue with Mr Rabin 
and asked Israel not to hamper 
existing Palestinian institu- 
tions in Arab East Jerusalem 


DON’T JUST 
UPGRADE YOUR 
SEAT, UPGRADE 
YOUR AIRLINE. 



V 


Continental Airlines 


Airline 


Mffli 

Air France 

NO 

ts- 

British Airways 

NO 

40“ 

CONTINENTAL 

YES 

5S“ 

Dclra 

NO 

41“ 

Lufthansa 

NO 

40“ 

United 

NO 

40“ 

— BHB1 


Flights tmin Lon dun, Paris, 
Frankfurt, Munich Jnj Madrid w» 
New Houston and Denver and 
on ro | JO U.S. cities. 




















FINANCIAL TIMES TUESDAY JUNE 14 1994 







FiNANClA t TIMES 





European iElections ’94 



The new 
assembly’s 


agenda 



Results 
country by 
country 


P90M0-11 



The 

challenges 

ahead 


Pag* 1 Z 


Where electors failed to show indifference, they showed defiance, writes Lionel Barber The deal 


Politics of protest wins day 


■ Voters’ rebelliousness is tempered by a 
yearning for greater security ■ European 
Parliament has chance to exert real influence 


The new European paritam^nf 
has made an inauspicious 
start Low voter turnout has 
again challenged the legiti- 
macy of an institution which 
claims to represent the Euro- 
pean Union's best chance of 
increasing democratic account- 
ability. 

Apathy was expected in the 
UK but the mood seems to 
have spread to the Nether- 
lands, Ireland and Portugal, 
traditional bastions of Euro-en- 
thusiasm. Where electors failed 
to show indifference, they dem- 
onstrated defiance. With the 
exception of Germany, where 
Mr Helmut Kohl’s victory 
shows how much voters still 
lean toward StabiUtdt fiber 
alles, the politics of protest 
scored heavily. 

The main - practically the 
only - left-wing victory came 
in the UK, where the British 
government’s insistence in 
keeping the majority voting 
system for Euro elections has 
resulted in a disproportionate 
increase in the Socialist group 
in Strasbourg. 

Across Europe, the outcome 
was one of kaleidoscopic vari- 
ety. In France. Mr Bernard 
Taple and Mr Philippe de Vfl- 
liers, mavericks of the left and 
right, emerged far stronger 
than expected, hi Italy, Prime 
Minister Silvio Berlusconi 
showed that his Fona Italia 
movement’s general election 
victory in March was more 
than simply an isolated surge 
of resentment with the politi- 
cal establishment In Spain, 
Prime Minister Felipe Gonzalez 
joins Mr John Major as one 
more incumbent leader in deep 
trouble. 

The picture that emerged on 
Sunday night contains conflict- 
ing and contradictory ele- 
ments. The forces of fragmen- 
tation unleashed by the 
collapse of communism in east- 
ern Europe are still on the 
loose in lie west Disfltusian- 
ment with political elites 
remains palpable. But rebel- 
liousness is tempered by a 
yearning for greater security. 
Curiously, the EU looks a safer 
and more attractive place from 
outside than from inside. Per- 
haps the most significant 
result will turn out to be the 
overwhelming Austrian vote 
on Sunday in favour of joining 
the European Union. 

The big question is whether 
the EU, now attempting to 
bring in four new members 
from the European Free Trade 
Association, can reconcile this 
volatile public mood with the 
grand designs drawn up in the 
Maastricht treaty. 

Can Chancellor Helmut 
Kohl, whose chances of 
remaining in office in the Octo- 
ber genera] election have 
clearly grown, coax the Ger- 
man electorate into accepting a 
fixed timetable for surrender- 
ing the D-Mark in economic 
and monetary union (Emu)? 

Can President Francois Mit- 
terrand's successor in 1995 per- 
suade his fellow Frenchmen 
that the price of winning Ger- 
man support for Emu will be 


political nninn — an arrange- 
ment which will necessarily 
constrain French sovereignty 
in foreign and security policy? 

Cana weakened Felipe Gon 2 - 
ilez encourage Spaniards to 
accept the labour market flexi- 
bility and public spending dis- 
cipline which r emain crucial to 
Spam's economic future? 

Mr Hans Van den Broek, for- 
mer Dutch foreign minister 
and now EU Cammissianer for 
wim wi poetical affairs, said 
on Sunday night flat it was 
very difficult for the ordinary 
European citizen to recapture 
enthusiasm fix' the European 
ideal in the absence of "con- 
crete achievements". 

He singled oat EUs impo- 
tence in the face of the conflict 
in Bosnia, despite its huge 
humanitarian add effort. And 

The main points 

■ Best performers: Chancellor 
Helmut KcN In Germany, 
renegade French 
businessman Bernard Tapie. 
ttafian prime minister SSvio . 
Berlusconi. 

■ Worst performers; UK prime 
minister John Major, Spanish 
leader FeMpe Gonzalez. 

■ Main winner: Apathy. 

Turnout of 5 per cent was 
lowest ever for a 
Euro-election. 

■ Lowest h*nout Netherlands 
(35.6 per cent), Portugal (35.7 
per cent), UK (36.2 per cent). 

■ Government parties (fid best 
In Germany. Italy, Greece; 
worst In UK. Spain, France. 

■ Left e dng parties did well 
only in the UK. They fared 
badly In Germany, Spain, 

Italy, Denmark, and Belgium. 

■ Far-right gained In French- 
and Dutch-speaking Belgian 
regions, but slipped in France 
and Italy. RepubBcans lost al 
seats in Germany. 

■ Anti-Maastricht protest 
parties did best In France, 
Denmark, Spain, Greece; but 
bacfly rn Germany. 


he pointed to the Ell's army of 
unemployed, now past the 18m 
mark. A Commission official 
adds: "Europe has failed to 
answer the question: ‘What’s 
in it for me?’ " 

In search of an answer, the 
newly-elected parliament can 
play a constructive role. Not a 
decisive role, because its pow- 
ers are limited. It cannot initi- 
ate lftgidatinn . for that is the 

sole prerogative of the Com- 
mission. Nor does it enjoy 
direct revenue raising powers. 
But the new Maastricht right 
of codedsion on Eoro-legisla- 
tion, which it shares with the 
Council of Ministers, offer 
MEPs the opportunity to put 
the parliament on the map. 

The chances of MEPs exert- 
ing real influence depend on a 
variety of factors, starting with 
the composition of the parlia- 
ment At least 60 per emit of 


the intake will be new mem- 
bers. With luck, many should 
be superior in quality to their 
predecessors, a motley bunch 
of mavericks and freeloaders 
inter s per s ed with genuine tal- 
ent (much of which was to be 
found among British MEPs, 
widely praised by their peers 
in a preelection survey con- 
ducted led by Liberation, the 
Ftench daily). 

H is undear, however, how 
the new groupings and parties 
will work with each other in 
order to strengthen the parlia- 
ment's ii>flnmi* (m le gislation 
as weD as its power alongside 
the Commission and the Coun- 
dL 

The parliament’s institu- 
tional future will itself a cru- 
cial question at the intergov- 
ernmental conference to 
review Maastricht in 1996. 

The Socialist group is likely 
to he the parliament's single 
most cohesive group. The cen- 
tre right has gamed strength, 
but the Christian Democrat- 
dominated European People's 
Party remains fragmented, 
with the allegiances of Mr Ber- 
lusconi's Forza Italia and the 
French GahBists in doubt 

The British Labour party is 
by far the strongest force in 
the Socialist group. 

Although the Socialists may 
be able to assert themselves in 
the parliament, their infhipnra 
will meet natural limits in the 
form of the continuing predom- 
inance of centre-right govern- 
ments in the Council of Minis- 
ters. 

The lack of political har- 
mony between parliament and 
Council raises another large 
question. How far is the parlia- 
ment ready to use its muscle to 
fihailmp the Council not just 
on the fine points of Euro-legis- 
lation but also an the wider 
question of democratic 
accountability in derfginn-malr- 
ing? 

An early test of strength win 
turn on the choice of the next 
president of the European 
Commission, a decision to be 
taken in secret by the 12 EU 
heads of government, possibly 
at next week's European sum- 
mit in Corfu. 

Under the Maastricht treaty, 
thp parliament is waited upon 
to approve the selection. TO 
exert a veto would be tanta- 
mount to pressing a nimlaar 
button. But MEPs could use 
the opportunity of their high 
profile in public debate to pass 
Judgment on the wisdom of the 
choice, and could also put for- 
ward a list of legislative priori- 
ties for the next Commission. 

The task for the new Euro- 
assembly will be to exercise 
and develop its present powers 
without provoking the Council 
(and national parliaments) to 
the extent of causing a back- 
lash at the 1996 inter-govern- 
mental conference, if they can 
succeed in this design, and 
somehow simultaneously win 
the trust and engage the Inter- 
est of the Euro-electorate, 
MEP s mig ht be able to claim 
that they have finally am* of 



Anti-Maastricht ghosts rise 
up to wreak polls vengeance 


By David Buchan in Paris 

A picked scab never heals. 
This has been the theory on 
which Mr Philippe de Vflhers 
has been working ever since 
his anti-Maastricht cause lost 
the French referendum by a 
whisker in September 1992. 

And on Sunday he tri- 
umphed. His Other Europe list 
scored 12.3 per cent in Sun- 
day's French Euro-election to 
put himself and 12 other anti- 
Maastrichters, including Sir 
James Goldsmith, into the 
Strasbourg Parliament 

BBs success was not entirely 
unique. In Denmark two anti- 
European movements, the 
June Movement gnH the Peo- 
ple’s Movement Against the 
EU, rose from 1&9 to 25.5 per 
cent of the vote - a result that 
is expected to leave Denmark 
di gging in its heels against fur- 
ther European integration. 
And in Belgium, the Flemish 
extremist party Vlaams Blok, 


and the National Front in Wal- 
lonia saw their support surge. 

But it is France that the anti- 
Maastricht surge has been 
most vigorous and most star- 
tling - not least because of the 
maverick persona of Mr Vil- 
liers himself. 

After the 1992 referendum, 
better-known leaders of the 
French anti-Maastricht move- 
ment went on to hold office; 
Mr Charles Pasqua became 
interior minister and Mr Phil- 
ippe S6guin president of the 
National Assembly, posts 
which inevitably led than to 
muzzle their residual opposi- 
tion to the controversial treaty. 

But Mr de Villiers, a deputy 
nominally within the pro-Euro- 
pean centre-right UDF federa- 
tion, never stopped picking 
away at the division over 
Europe that the referendum 
revealed. He wrote a book 
called Our Europe with Maas- 
tricht He formed a supporters' 
chib called “Combat pour les 


Valeurs" whose main credo is 
the fight against Brussels and 
sought alliances with 
like-minded defenders of the 
nation-state in other European 
countries. 

But special reasons contrib- 
uted to his success at home. 
First, the Other Europe pro- 
vided an outlet for conserva- 
tive French Euro-sceptics who 
saw none of their views 
reflected in the joint pro-Maas- 
tricht list presented by the 
UDF-RPR governing parties. 

Second, while the only 
strong base of aristocratic Mr 
de Villiers - full name: Phil- 
ippe Le Jolis de Villiers de 
Saintignon - is in the rural, 
royalist Vend6e on the west 
coast, his list had others of 
national pulling power. Num- 
ber two on It was Sir James 
Goldsmith, whose book The 
Trap of Gatt evidently 
endeared him to unreconciled 
opponents of the world trade 
accords. 


The next pair on the list 
were Mr Charles de Gaulle, the 
late general’s grandson whose 
public diffidence was for out- 
weighed by his name recogni- 
tion, and Mr Thierry Jean- 
Pierre, a former magistrate 
who won campaign headlines 
by attacking corruption. 

The third factor was that Sir 
James’ presence on the list 
gave it virtually unlimited 
finance. An Other Europe 
spokeswoman said yesterday 
the list had received "money 
from the public as well as that 
of [Sir James] Goldsmith", 
whose GuHstream jet she said 
had also been useful in the 
campaign. An official of the 
National Committee for Cam- 
paign and Political Finance, 
which oversees French election 
funding, explained yesterday 
that while outsider contribu- 
tors were limited to gifts of 
FFr500.000 (£58,500). a candi- 
date could contribute up to 
FFr85m (£im) to his or her list 


makers 
hunt for 
allies 


By GOUan Tott 
and David Gardner 

The election results may be 
counted but a new round of 
political jostling has just 
begun. 

With composition of the 
European Parliament split 
fairly evenly between right and 
left, the task of building the 
parliament’s political blocs is 
set to be a delicate game of 
musical chairs. 

The main forum for the man- 
oeuvring will be the parlia- 
ment's fragmented right wing. 
While the left is presenting a 
fairly cohesive front, allied 
around the dominant Socialist 
group, the right will face a dif- 
ficult task in forging any firm 
alliance. 

The Christian Democrat 
group has traditionally been 
the key allianffg make r on the 
right Its number overall has 
shrunk slightly in the election 
to around 130 but the Euro- 
pean Peoples Party (EPP) 
which it controls has a raft of 
likely allies. This could reuse 
the group’s overall numbers to 
near parity with the Socialists. 

The question now is whether 
parties such as the UK Conser- 
vatives or Mr Silvio Berlus- 
coni’s Forza Italia will be will- 
ing to work with the EPP. 

"There will be hectic negotia- 
tions this week - there will be 
many telephone calls across 
the borders,” said Mr Leo Tin- 
demans, former Belgian prime 
minister and leader of the EPP. 
He insists that the Christian 
Democrats do not want to asso- 
ciate with Mr Berlusconi's 
main government allies, the 
neo-fascist National Alli- 
ance/MSI and the Northern 
League. 

Crucial negotiations will also 
centre around France’s neo- 
Gaullist RPR and the Portu- 
guese ruling centre-right liber- 
als. Portugal's liberals dislike 
the whiff of incense still waft- 
ing around Christian Democ- 
racy. In France, the transfer of 
a foil Gaullist contingent, still 
attached to the General's ^'Eu- 
rope des Parries", is far from 
assured. 

Although Britain's Tories sat 
in affiance with the EPP dur- 
ing the latter part of the last 
parliament, many Christian 
Democrats- are angry at the 
anti-European tone of the Con- 
servative government and its 
recent election campaign. 

Mr Tindemans himself says 
that some new alliance with 
the Conservatives might still 
be possible - although he 
admits that Dutch, Italian and 
Belgian Christian Democrats 
have been opposed in the past 
The Conservative party says 
it is keeping its options open 
until the parliament recon- 
venes. 

Although Chancellor Helmut 
Kohl, the main Christian Dem- 
ocrat broker and deal-maker, 
appears well-disposed towards 
Mr Berlusconi, Benelux Chris- 
tian Democrats deplore the 
Italian leader's alliance with 
ueo-Iascists. 

Even if the EPP does forge 
on alliance in the next few 
weeks, this may sunder over 
the increased presence of 
Italy's neo-fascists at Stras- 
bourg when parliament assem- 
bles on July 19. 





New paritamwit: 587 seats 

Rainbow ytxppSW) 8 


Groans group 


European SocMW 

party poup(P® 

and Scaly 2DO 


LatlUnby. 

group (LU) — 



Noo-aoachad (NA) 

Uboiai DamocraMck 
R^snfotgrotptLPq 


Etrepaan Democ rat i c 
AJfenca group (EDA) 

European People's pwty 
(Ctvtadan Democratic} 
• \ greets*?) 

148 andBcetyoSee 


Eaopean 
13 Right groups 


Old parfamont: 518 1 
Rainbow youp (RBW) 


Number of seat* by country 


Seats 1904 1999; 


Navatached (NA) 



ttl Germany 


87 

8lj 

Italy 

87 

81; 

UK 

87 

81j 

France 


04 


fl 0 < Spain 


31 


95 i Nattwriands 


25 

24t 

as 

w i 

25 

*! 

iT 

loi 


24 i Belgium 


24 1 Qreeee 


24! Portugal 


1994 


1989 


15 5! 

8 oj mumbourg 


« Based on 


EurapMn patanNd mobbk» atlAttl QMTyeondoyand prefectad growings 


1 




FINANCIAL TIMES TUESDAY JUNE 14 1994 


European Elections 


How the parliament has grown: six nations to nine 


' Real GDP (index 1973=100) 
ISO ~s — - ■ 


. Rrar meeting of 78-seat 
: Gammon Assqmfaiy of the 
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end SM Community'. 


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1952 1983 1954 1965 1965 1957 1968 1969 1980 1981 

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PARLIAMENT’S 

AGENDA 

■ Ready itself to help shape 
new European Commission 

MEPs have won the right to 
be consulted over the 
appointment of the new 
Commission president 
Parliament must also approve 
the make-up of the 1995 
Commission before it can take 
office. MEPs are seeking to 
hold confirmation hearings for 
proposed commissioners. 

■ Intensify involvement in 
EU law-making 

Already, 2.000 parliamentary 
amendments, mostly to Single 
Market law, have been passed, 
and MEPs now have 
co-decision rights with the EU 
Council of Ministers rn many 
policy areas. These include 
services, education, culture, 
health, nudti-annuaJ R&D and 
environment programmes, 
consumer protection, and 
workers’ freedom of 
movement 

Co-decision means parliament 
can veto most measures 
passed by qualified majority 
voting in the Council; a 
conciliation committee has 
been set up to find 
compromises with the Council 
on contentious Issues. 

■ Increase the transparency 
of MEPs' links to business 

With Parfiamenf s growing 
power In important policy 
areas, hie need increases for 
greater disclosure of members’ 
private involvement in 
commerce and industry. 

■ Press its case to achieve 
more legislative power 

Parliament will step up Hs 
campaign during preparations 
for the 1996 Maastricht review. 
In which pressure will emerge, 
especially from Germany, for 
an increase in MEPs 1 
supervisory and legislative 
roles. 

■ Prepare the campaign to 
win more budgetary control 

Parliament is able to reject the 
EU budget and ask for It to 
be revised. MEPs are seeking 
more involvement on the 
revenue side, where it currently 
has no decision-making power. 

■ Pool forces to reduce the 
secrecy surrounding Council 
and Commission decisions 


David Gardner assesses the new balance of power in the European Parliament after the elections 

Strasbourg set to tilt to the left 


I n spite of strong gains for 
the right across the Conti- 
nent, the balance of power 
in the European Parliament 
has changed little. If anything, 
in the consolidation of power 
rather than in absolute num- 
ber of seats, the Strasbourg 
assembly will tilt slightly 
towards the left 
The hitherto dominant 
Socialist group will have in the 
new 567-member legislature 
proportionally much the same 
presence as in the outgoing 
518-strong assembly. This 
assumes that the Left Radical 
list in France headed by Mr 
Bernard Tapie either sits or 
allies with the Socialists. 

Centre-right and right-wing 
parties are numerically 
strengthened. But the right 
will be a highly fragmented 
force, with fault-lines subject 
to continual political stress, 
facing a much more cohesive 
Socialist bloc. 

As a result, the broadly 
bipartisan motor put together 
by the Socialists and Christian 
Democrats in the last parlia- 
ment may be mnrfi harrier to 
crank up. That could stall the 
parliament in the way it uses 
its growing powers. 

“Negotiations [between the 
two blocs] this time are going 
to be that much more complex, 
because of this new situation 
on the centre-right,” predicts 
Mr Julian Priestley, secretaiy- 
general of the Socialist group, 
tipped to take over as sec- 
retary-general of the parlia- 
ment. 

Strasbourg was invested 
with significant new powers by 
the Maastricht treaty, enabling 
it to negotiate for the first time 
as a near equal with the Court 
d] of Minis ters 
Since Maastricht came into 
force last November, Stras- 
bourg has begun demonstrat- 
ing that far the first time it has 
a sense of priorities, and can 
apply Its weight effectively - 
for example, in winning 
pledges for a top-table seat for 
the 1996 Maastricht review. 

The new parliament will 
have to struggle to maintain 
that momentum, at a time 
when the Council’s cohesion 
will probably be strengthened. 
Germany, France and Spain 



Ken Collins: wants to keep 
environment job 


Pi et Dankert: eye on 
budgets committee 


Pauline Green: leader of 
largest national grouping 


Elisabeth Gaigom outside 
candidate far presidency 


Glenys Khmock: newly elected 
for Wales 



Wilfried Martens: former 
Belgian premier elected 

7 • - *- 

will successively hold the EU*s 
six-month rotating presidency 
up to 1996, and are coordinat- 
ing efforts to run as seamless a 
management as possible. The 
seams on parliament’s centre- 
right, by contrast, are highly 
visible. 

The traditional Christian 
Democrats, mostly from the six 
founding member states, have 
been strengthened by Chancel- 
lor Kohl’s victory, but have 
shrunk to a core group of 
around 130 MEPs. This section 
could grow in strength if alli- 
ances with other groups, 
including Britain’s Tories and 
Forza Italia, are concluded. 

But even if such coalescence 
took place, the federalist Euro- 


David Martin: respected for 
constitutional wort; 

pean People’s party (EPP) 
would then contain within it a 
powerful Buro-sceptical force. 
The Christian Democrats share 
with the Socialists a commit- 
ment to Europe's social and 
welfare policies. A strengthen- 
ing of Euroscepticism would 
contrast with the Christian 
Democrats' track record as 
assiduous drafters of proto-con- 
stitutions for a federal Union. 

As debate on the BlTs jobless 
crisis sharpens and calls grow 
for labour market deregu- 
lation. and as the 1996 review 
approaches, the EPP could find 
it hard to stay together as a 
broad church. 

The earliest set-pieces defin- 
ing the new balance of power. 


Carlo Rrpa dx Mremc eje cted 
for Italy's Greens 

however, will be in the 
carve-up of the main parlia- 
ment jobs. 

The presidency, until now a 
role havering ineffectually 
between figurehead and parlia- 
mentary speaker, will assume 
greater importance. 

The Socialists say they will 
almost certainly put forward a 
candidate. But first they must 
sort out their own leadership, 
up to now the most influential 
position at Strasbourg. 

Mrs Panline Green, leader of 
the UK Labour MEPs, now by 
far the largest national group- 
ing in the assembly, is dear 
front-runner, in competition 
with the German SPD leader 
Klaus HUnsch. If Mr HSnsch 


Bernard Tapie: may ally 
himself with Socialists 

does not win. he has a plausi- 
ble claim to his group’s back- 
ing for the presidency, as does 
Mr Jean-Pierre Cot. outgoing 
Socialist group chief. 

One other presidential candi- 
date, Ms Elisabeth Guigou. 
European affairs minister in 
tiie fast French Socialist gov- 
ernment, is an outside runner 
because of lack of MEP experi- 
ence. Ms Guigou is also likely 
to suffer from the poor show- 
ing of France's Socialist list • 

The fragments ton of the 
French vote would make it dif- 
ficult for any group to sustain 
a French candidacy for the top 
job. Hopes that French centrist 
Dominique Baudis, the mayor 
of Toulouse, might get the 


Leo Tlndemans: could stand 
forpretdency 

presidency appear to have 
evaporated since his UDF-RPR 
list lost ground. 

Either of the two fanner Bel- 
gian Christian Democrat pre- 
miers elected, current EPP 
leader Leo Tlndemans and Mr 
Wilfried Martas, could stand. 
However, many on both sides 
of the house feel parliament 
should look to the future 
rather than the past 

Once the presidency is set- 
tled, an unseemly scrap could 
take place for control of the 
four most important commit- 
tees: foreign affairs (probably 
absorbing trade); budgets; envi- 
ronment; and economic and 
monetary affairs. The Social- 
ists currently hold the first 


three and the Christian Demo- 
crats the last - 

The growing influence of the 
committees in shaping and 
shepherding legislation had 
won them cross-party support 
irrespective of which group 
chaired them. But this biparti- 
san attitude could now be 
eroded. 

Mr Ken Collins, the Scottish 
Labour MEP who heads the 
environment committee - 
arguably Strasbourg’s filntffa 
most influential body - wants 
to keep it Hu could face chal- 
lenge not only from the right 
but from Mr Carlo Ripa ett 
Means, former EU environ- 
ment commissioner elected far 
Italy’s Greens, and. according 
to insistent rumour, from Mrs 
Glenys Kinnock. wife of the 
former UK Labour leader, and 
now newly elected in Wafas. 

Competition for the chair erf 
the foreign affairs; trade com- 
mittee will be even fiercer if 
the two are amalgamated. Cur 
rently occupied by Mr Enrique 
Baron - former president of 
the parliament tipped as new 
head of the WEU, the Union’s 
embryonic defence arm - the 
foreign affairs job conceivably 
could go to Mr Fernando 
Moran, respected former 
Socialist foreign minister. But 
the Spanish Socialists hold few 
cards after their hammering by 
both right and left on Sunday. 

Mr Piet Dankert. Dutch 
European Affairs minister and 
a distinguished former parlia- 
ment president, has his eye ret 
the budgets committee. But 
this could be a prime target for 
the EPP. which because of its 
fragmentation Is having diffi- 
culty settling on candidates. 

One other important decision 
will be tiie parliament's choice 
of the MEP to elaborate its 
case for the 1996 review confer- 
ence. On merit and experience, 
tins job might go to Scottish 
Labour MEP David Martin, 
whose constitutional work 
prior to the Maastricht s ummit 
■was widely respected and influ- 
ential. 

hi the new, more fissiparous 
configuration at Strasbourg, 
however, the premium on con- 
sensus could give way to a 
more partisan struggle, for 
both spoils and controL 


Lobbying has gamed in priority, writes Daniel Green 

Industries’ efforts to sway 
Commission shift into gear 


I ndustry's contacts with the 
European Parliament are for 
the most part a by-product of 
the well-oiled machinery that tries 
to exert an influence on the Euro- 
pean Commission. 

Commissioners are likely to 
remain the first stop for any indus- 
try lobbyist But for some, the par- 
liamentary elections have signalled 
that members of the European Par- 
liament may deserve more attention 
than can be given in the spare time 
of a Brussels lobbyist 
The chemicals industry has one of 
the more powerful lobby organisa- 
tions in Brussels, Cefic, with a 
full-time European Parliament liai- 
son officer. Some countries, such as 
the UK since the 1989 Euro elec- 
tions, have established direct links 
with MEPs. 

The two routes to Strasbourg are 
useful when differences arise 
between national bodies and with. 
Cefic. These are inevitable in the 
ch e micals industry because of the 
different make-up of national 
groups: the UK group, for example, 
is an employers' association, 
whereas the German group is not 
The European textiles industry Is 
an even more accomplished player 
of the Euro-lobby game. It has a 
European Parliament lobbying 
group, set up nearly four years ago 
by Mrs Carla Piejs, a Dutch Chris- 
tian Democrat MEP. The group, 
including representatives from the 
textiles trade and unions as wen as 
industry, has four meetings a year. 
These are open to specialist speak- 
ers and journalists. 

It can point to the establishment 
of an anti-fraud unit dealing with 
schemes to avoid tariffs and trade 
quotas, and it successfully lobbied 


the parliament to win greater assis- 
tance for exporters of textiles and 
clothing. 

Then there is the electronics 
industry, which sees the European 
Parliament as at best more bureau- 
cratic entanglement, and at worst 
as an irrelevance. 

Companies complain of a lack of 
initiative and focus compared with 
Brussels, which is seen as the cen- 
tre for policy making. MEPs are not 
particularly visible nor easy to 
interest in industrial matters. 

The European computing services 
industry provides an illustration. 
During the past three years, the 
industry H as been much concerned 
about a software directive, ostensi- 
bly designed to curb software 
piracy, but with significant implica- 
tions for the freedom of software 
developers to build new products. 
Few directives have seen fiercer lob- 
bying by the opposing camps. The 
lobbying took place in Brussels, 
however, not Strasbourg. The par- 
liament was not thought to have 
had much influence on or grasp of 
the principle at stake. 

UK retailers are also sceptical and 
deal with European institutions 
through the national trade body, 
the British Retail Consortium 
(BRC). Brussels trade groups and 
bodies such as the European Retail 
Alliance, set up by Ahold of the 
Netherlands, France's Casino and 
Argyll of the UK, and EuroCom- 
raerce do their share of lobbying, 
but the BRC usually prefers to deal 
directly with MEPs, says Mr James 
May, its director general. 

Bfr May says UK retailers fallow 
the line of the ruling UK Conserva- 
tive party in not wanting more pow- 
ers to go to the European parlia- 


ment. “The role of the parliament is 
to act as a watchdog on the com- 
mission." he says.. 

The construction sector, too, 
tends to approach Brussels through, 
national industry bodies, and 
national interests have a strong role 
in what each group presses for. 

It has concentrated on lobbying 
the commission about the harmoni- 
sation of standards far the desig n 
and construction of buildings. It 
may now take a greater interest in 
the parliament and its committees, 

Which Can inflnenrfi the le gislatio n 
under preparation. The planned reg- 
ulation of environmental emissions 
is one issue that Is being watched 
by both construction and chemicals 
industry groups. 

The taloMimmmiteita'nng business 

is by necessity more international 
in its outlook than retailing and 
construction, where companies tend 
to be nationally based. 

British Telecom has had a Brus- 
sels office since 1990. It Is now five- 
strong and will soon be enlarged. 
Mr Peter Mackie, its director, says 
however that “more than 80 per 
cent” of its time is devoted to the 
European Commission. 

"We have not been very active 
with the parliament - just on an ad 
hoc basis. About half of what we 
have dene - briefings and so on - 
has been with British MEPs, about 
half with others,” he said. 

“We are looking to devote more 
time to the parliament now that co- 
decision is more important, but 
most of the decisions affecting us 
will still be taken in the Commis- 
sion and the Council," he adds. 

Additional reporting by Jenny 
Luesby, Ned Buckley, Ahm Cane, 
Andrea Taylor, and Andrew Adorns 


Bringing the lobbyists to book 

MEPs’ business interests should be more transparent, writes David Gardner 


O ne of the most important 
tasks facing the new Euro- 
pean Parliament will be to 
tighten the rules on members’ busi- 
ness and lobbying i n t er e s ts. 

The Strasbourg assembly is 
already heavily lobbied by compa- 
nies and industry associations fry- 
ing to get European Union laws 
amended to protect their interests. 

Slightly more than half of parlia- 
ment's amendments since the Sin- 
gle European Act came into force in 
1987 have passed into the national 
law of the 12 member states - a 
total of about 2^)00 changes to what 
the Commission in Brussels has 
proposed and the Council of Minis- 
ters has disposed. 

But under the Maastricht treaty 
the parliament has significantly 
greater powers to shape Euro-legis- 
lation - through "co-decision” 
rights which enable it to veto many 
directives passed by a majority in 
the Council of Ministers. Since the 
virtual completion of the single 
market programme, the volume of 
Euro-law has dropped, but the 
stakes for lobbyists have risen 
Yet the register of MEPs’ inter- 
ests shows that there are no effec- 
tive standardised systems lor 
requiring members to declare their 
interests, and that a significant 
minority of Euro-MPs are paid lob- 
byists for companies and sectors 
with a direct interest in influencing 
Euro-law. 

As one Euro-lobbyist puts it, “Td 
be quite careful about taking some 
of them [MEPs] out with a chant, 
because a lot of them are quite 
capable of making a rival offer.” 

As a group, and by a long way. 
the most active lobbyists and hold- 
ers of paid consultancies for indus- 
trial and commercial interests are 
British Conservative MEPs. 

The new assembly has an oppor- 
tunity to dear the muddy waters 


because it fa at the start of a parlia- 
ment that members are required to 
fill in a declaration cm their profes- 
sional activities and other paid 
functions. 

The record of what they declare is 
kept in 15 ring-bound volumes in an 
obscure cubby-hole of the parlia- 
ment’s offices. The records travel 
between Brussels and Strasbourg, 
where pa r liament holds its plena- 
ries, and occasionally Luxembourg. 
It can be consulted by the public 
under supervision, but may not be 
photocopied - an unnecessary safe- 
guard since much of It is barely 
legible in the original. 

What it reveals - rang foe verb 
loosely - is widely divergent politi- 
cal cultures regarding what should 
be declared, and what paid activi- 
ties may or may not risk conflict of 
interest far an elected representa- 
tive. A great number of the entries 
are blank, declare no interest, or 
are registered only in the mother- 
tongue of the MEP with no 
translation. 

Among Continental Euro-MPs. it 
is common to state the former pro- 
fession or occupation. Very fre- 
quently, especially in France, Italy, 
tmft Germany, under foe ‘Hpaeing 
other (usually paid) activities, will 
be hated another public office, such 
as mayor, town or regional council- 
lor, senator, party functionary, or, 
for German Social Democrats from 
a trade unio n background, contain - 
ing membership of works councils 
or supervisory boards of Germany’s 
leading companies. 

Many MEPs broadcast, write for 
newspapers, and lecture at universi- 
ties. Indeed, a good deal of intellec- 
tual grandstanding goes into some 
entries, particularly among some 
French and Spanish MEPs, who see 
the register as an opportunity to 
outline seemingly Illustrious curric- 
ula vitae: contributions to this 


learned journal, professorship at 
that university, royalties from these 
books, and so on. Many neo-fascist 
MEPs seem to think “author” fully 
describes their activity. 

The register is full of little oddi- 
ties. some piquant, some conceiv- 
ably attempts at humour. Mr Robert 
Hersant, for example, the French 
press baron, and absentee Giscar- 
dian MEP, lists hlmwif profession- 
ally as a newspaper publisher and 
TV station proprietor, but records 
zero income aside from bis Earo- 
MP’s salary. 

Mr Jose Maria-Ruiz Mateos, the 
entrepreneur who accounted for 
nearly 3 per cent of Spanish 
national output until his failing 
Rumasa group was expropriated in 
foe early 1980s. fa apparently a busi- 
nessman without an income. 

Mr Jens-Peter Bonde, foe Danish 
scourge of Maastricht who appears 
as an accredited journalist at EU 
summits to bash Europe, describes 
himself as “Editor (unpaid)". 

T wo Italian Socialists, mem- 
bers of a party imploded by 
Italy s corruption scandals, 
register their interests solely via a 
question mark. 

British Labour MEPs ostenta- 
tiously list all their "freebies’’, or 
study trips paid for by governments 
and outside organisations, with 
more than a touch of righteous 
pedantry. 

The longest single entry fa from 
MrBryan Cassidy, a Conservative 
MEP, and indeed he and his 31 Tory 
colleagues in the fast parliament 
provide most of the register's meat 
This could certainly be because of 
higher standards of disclosure. But 
parliament officials. Tory pfficMs 
and lobbyists all confirm that the 
Conservative MEPs are the most 
active in paid activity on behalf of 
industry. 


Only two former right-wing Span- 
ish ministers - Eduardo Punset and 
Fernando Suarez - and an eccentric 
Dutch Christian Democrat, Jamas 
Janssen Van Raay, who an sit on 
the boards of large companies such 
as Bull and Nestle, come near to 
rivalling them. 

Mr Cassidy has four consultan- 
cies, including Union Carbide and 
Rowland Public Affairs. Mrs Caro- 
line Jackson consults for Mars, the 
Brewers Society and Market Access 
International, and sits on foe board 
of Peugeot/Talbot UK. She, and oth- 
ers of her colleagues, are on record 
as saying that proximity to industry 
fa valuable in weeding out parts of 
laws that could needlessly damage 
business. 

But a significant number of Tory 
MEPs own, or are partners in. then- 
own PR, lobbying, or public affairs 
consultancies, including Tom 
Spencer, Edward McMfflan-Scott, 
James Moorhouse, and Christopher 
Jackson. 


Bill Newton-Dunn. who 
striven for tougher rules on 
sure. UK Labour MEPs, wh 
become the largest national 
Strasbourg, have, as a grot 
given the issue the priori! 
might have been expected. 

From July, however, tk 
Ukely to be a groundswell in 
of fall disclosure, and foe i 
ment on MEPs to declare ax 
est if they have links to a co 
affected by the legislation tt 
dealing with, particularly wh 
at the crucial committee 
where most amending gets d 

One leading lobbyist of the 
meat says that “I’ve onl' 
heard a member declare an i 
in committee twice” - not a 
a parliament with Strasbourg 
powers can any longer afforc 


9 




i 


t 


\ 










WNANCIAL TIMES TUESDAY JUNE 14 1994 



{ i --J I 











How the parliament ftas grown: nine to twelve and beyond 

• f^^y^tdax 1973 - 100 ) 

■"VPVWwavM' MwrtMrcbtespRMda RM direct aletteans; 410 ftMte, { .S«ate .increase to 434 
160' . 7 - . ^cfira«a»egCong. 1S2m tfatflaate: 63S turn out ftiBowing ChBBCgg acoesg«ift 


European Elections 


Mwrtwwaaftaaptomdat ft* dnx2»Je«Joas; 410 aorta, 
far e&act e l ecti o ns ( 182m rtectciatK 63% turnout 


V Second cBrectetecOora; 
atoctorate 20lm, turnout 61 %., 


120 


'eo -*§§» 




40 -v Qamrouifly rarnterotstM and &rex*wi CommissiOfT 
. S ?® 8 oqncS«h» p roodum w» parUnmont 

J^Yrtw^conaoBdateoaw budgetary powtsra. 

20 1 .\. _ L J *, T " ,m. m v >,m : mm Tm , , 9 . „,„ II iWt M 

1B74 1975 1078 1977 

QnpNsbycawtoWMw 

SPAIN 


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Seats Increase to 
Siafafiowfng 
accession of 

Portugal and Spain. 

■X ;^I 


v-r I ' TOWdSOCtBl 
• ; V >„•_'} , . electorate 24! 

"ass&x — 

Single European Act gwos treaty 
.status to tin tltfa European 
Mtanunt and aflocam new 

pownra. Increasing afatfty to 
. affect tagfatatfan proposed by 
ineaUMPrtatea, above OR that 
pertaining to Stogie Merton. 


TNrJ dtact decdonx 
electorate 245m. njmout S&5%, 



Right avenges domestic defeat 


By David White in Madrid 

Spain's political landscape hag 
changed with the European 
election results. After almost 
12 years in power. Mr Felipe 
Gonzalez’s Socialists have lost 
their position as the country’s 
leading party. 

Hit by economic discontent, 
still rife despite signs that the 
country is pulling oat of reces- 
sion, and by a series of acutely 
embarrassing corruption 
affairs involving former senior 
officials, the party has slumped 
to barely 30 per cent of the 
vote, its level when it was in 
opposition 15 years ago. 

Mr Gonzalez said he would 
consider putting his govern* 
meat to the test in a confi- 
dence motion - which it would 
have to win or face a snap gen- 
eral election. 

The jubilant street party in 
Madrid on Sunday night for 
the conservatives of the Popu- 
lar party marked revenge after 
a frustrating failure in general 
elections a year ago. It was the 
PFs first victory at national 
level. Breaking through the 40 


per cent mark, it also shattered 
a psychological barrier - the 
stigma attached to the right in 
post-Franco Spain. 

The PP gained from the 
demise of the centrists loyal to 
former prime minister Mr 
Adolfo Suarez, who lost all five 
of their European parliament 


The Socialists’ record as the 
party that took Spain Into the 
ED clearly counted for little. 
inso far as European issues had 
any influence, the PP appears 
to have scored more through 
its criticism of the way Span- 
ish Interests have been mart- 
aged In Europe. 

But even if it translated Sun- 
day’s results into a national 
election victory, the PP would 
still, like the Socialists, need to 
look for support from regianal- 
ist groups, with the prospect of 
a potentially unstable relation- 
ship. 

For Mr Jordi Pujol, the Cata- 
lan nationalist leader, Ms pol- 
icy of providing parliamentary 
support to keep the Socialists 
in power appears so far to have 
paid off. Far from losing votes 


to the PP, his party headed the 
ballot in Catalonia, the first 
time it has done so in a 
national election. 

The Socialists took second 
place to the tnatri regkfiialist 
parties in both Catalonia and 
the Basque country, although 
in the second case by a narrow 
margin over the PP. 

Elsewhere they lost in every 
region except Extremadura 
and Andalucia — tni-inding for- 
mer strongholds such as Valen- 
cia. Murcia, Gastfle-La Mancha 
and the mining area of Astu- 
rias. 

In Andalucia, where regional 
elections were held at the . ^mp 
time, they lost their majority 
in the regional parliament and 
now have little choice there 
but to rely on sup po rt from the 
Communist-led United Left 

In both election contests, it 
was the United Left that scored 
proportionately the biggest 
gains. Socialist hardliners who 
want to push party policy back 
towards the left will see the 
loss of votes to the United 
Left as reinforcing their 
arguments. 


■ PSOE 

Fernando Moran Lopez. Francisco 
SauquWo Perec del Area, Enrique 
Baron Crespo, Lixfivfna Garcia Aria. 
Josap Verde i Akkra, Ana Clara 
Maria Miranda da Lags, Pedro 
Aparicio Sanchez, dose Maria 
MendUuce Pereiro, Manuel Medina 
Ortega. Maria Izqulerdo Rojo, Josep 
Enrique Pons Grau, Joan Calom I 
Naval, Juan Luis Coflno Salamanca. 
Carmen Diaz de Rivera Icaza. Juan 
de Dios Izquiardo Coiado, Jesus 
Cabezon Alonso. Bart w ra DiSvkop 
Duhrkop. Antonio Gonzalez Trivirio. 
Francisco Javier Sonz Fernandez. 
Manuoia de Frutos Gama. Fernando 
Perez Royo. Ana Terran I Cual 


■ CKJ 

Carles Alfred Gaso&ba I Bohm, 
Concepda Ferrer 1 Casals. Joan 
Maria VaOvei Rivera 


■ PP 

Abel Matutas Juan, Cefia VTRalobos 
Tatero, Mercedes de la Merced 
Mongo. Joee Maria GS-Robtes 
GS- Delgado, Miguel Arias Caftate, 
Maria Teresa Estevan Bolen, Jobs 
M anuel Garria-Margaflo Marfil. Maria 
Carmen Fraga Estevez. Lis Campoy 
Zueco, Ana Isabel Patado 


Valtelersuncfl. Carlos Robles Ptcquer. 
Juan Manuel Fabra Valles, Gerardo 
Fernandez Aibor. Fernando 
Fernandez Martin. Jaime VakSvteso 
de Cue, Encamacton Redondo 
Jimenez. INgo Mendez de Vigo, 
Javier Areitlo Toledo, Joaquin Ssq 
C rueOas, Laura Elena Esteton 
Martin. Daniel Luis Varela 
Suanzes-Carpegna. Jose Gerardo 
Galeote Quecede. Jose Ignacio 
Salafranca Sanchez-Neyra, Jose 
Antonio Escudero Lopez, Franciaca 
Bermasar Tous. Jose Luis Valvrarle 
Lopez, Salvador Garriga PoUedo. 
Julio Aftoveras Trias de Bes 


Alonso Puerta Gutierrez, Antoni 
Gutierrez Diaz. Laura Gonzalez 
Alvarez, Maria Somosa Martinez. 
Maria Jesus Aramburu del Rio. 
Salvador Jose Paras, Carta® Camera 
Gonzalez, Angela del Carmen Sierra 
Gonzalez, Pedro Maraet Campos 


Josu Jon Imaz San Miguel, Isidore 
Sanchez Garda 

Based on pnSmbwty nsidta Issued 

by tho European Parliament. FuH 

results wiB not be known for several 
waa ka. 



Population: 39.1m U 
Steals: 64 L 






Ftesutts (Turnout SS.614; 1989, 54.8%) 

i* mr 

pre 

KM Seats 
■9* *89 *M *89 

h» 

B*P 

402 21.7 ZB 15 

PSOE 

PE5 

300 402 22 27 

HI 

tu 

134 62 8 4 

QU 

&MSXI 

44 42 3 2 

CM 

Bf/RBW 

28 19 2 1 

PH* 

RBW 

11 11 0 1 

ess 

LDR 

as 72 0 5 

HB 

KA 

OS 17 0 1 

B» 

Gretas 

- 1.9 - 1 

Cap* 

RBW 

07 IJ O I 

■■ 

NA 

04 39 0 2 


Source: Ministry of IntMtor 


COS nO tmocrat end SocM Centre; 


and (More CNaMstfondM Ctotfon: 
tPnftoglonoi Lott petty; KKUnltod Laft; 
Met»oe=Siq)partan of Rub Mateos; 
PEP^u rep aen P ecple^ i CoeMoe; 
PP=Ponulv Part* PSO&SocWbt 
Wortcara 1 party; 


Psritemantary group ahbmtatlona: i 
bottom MbS page this aecHon 


Proportional from nsttonri Baa 
Ccn ipu to wy vednff 


Popidabon (rranion) 


! i . . 1 • i 

Maaslnchl Tiraty ectlfrfeiw. Luropoan Union. .TSocilr^j fitlhct j 
partamentary ponrera. eapedallv «i oUcnnci legislation hi wider lumber I 
of areoa ana at decsting the makeup ol fasopean Comtnbaton. j 


j Seats increase to 567 fbitowing reunification Ot Germany (19901. 
i PariiarTieru ^proves EU memtrarsNp tor Auatruv Fntand, Norway 
j and Swedan the four call refarendums on me issue. 

j Fourth direct elections: electorate S60*n. turnout 56 5% 

1 

! * 1 ' N ! 1 ' 

■ f Austnans voia tor Eli menfaarslvp ( 

As pJ»t of preparaboin tor 1996 MaastncN imm corSctmcc. iwhMcnt 
seeks greater powers in tegnOam Htuenca over incnibwsmw. 

1991 iwa 1994* 19W 

• Forecasts, wsn 1895 msumng accaEsfcjii u Ell Of Austria, hnUnd, Norwir, and ! 



jos6 Marfa Aznar of the PP celebrates victory in Madrid 


UNITED KINGDOM 


LUXEMBOURG 






i ^ -Tii 

; n -a'i* 




Major mauled by Labour surge 


By PfiSp Stephens^ 

Political Editor 

Mr John Major’s government 
received a predictable maafing 
at the bands of an angry and 
disillusioned electorate. 
Britain's opposition Labour 
party, still choosing a new 
leader after the death last 
month of John Smith, did bet- 
ter than in any election for 30 
years. The outcome of the poll 
for the European Parliament 
has left Britain’s longer-term 
attitude to the European Union 
as uncertain as ever. 

Mainland Britain will send 
62 Labour, 18 Conservative, 
two liberal Democrat and two 
Scottish Nationalists MEPs to 
Strasbourg next month. North- 
ern Ireland, the only part of 
UK to use a proportional vot- 
ing system, will send two, rep- 
resenting the mainly-protes- 
tant Unionist community and 
one from the Catholic Social 
Democratic and Labour Party. 

But it is the government - 
and the warring tactions in the 
ruling Conservative party - 
which will continue to dictate 
the country’s attitude to Euro- 
pean integration in the run-up 
to the 1996 intergovernmental 
conference. And the Euroscep- 
tic tone which characterised 
the Conservative campaign 
pwwa to have won Mr Major 
votes. _ 

As in many other countries 
in the EU, the story of the elec- 
tions in Britain was one of 
competing cross-currents and 
obvious contradictions. As the 
fmal votes were counted. 
Labour and the Liberal Demo- 
crats claimed the electorate 
had endorsed their, more posi- 
tive, vision of Europe’s future. 

But only around 35 per cent 
of those eligible chose to vote. 
Also, the opposition parties 

IRISH REPUBLIC 


ftjpclafnrt 58.0m 

Seats: S7 r wMbl 

RmuRb (Turnout 36.4%; 1988, 302%) 


% iota Sots 
•94 *89 WM 

4L2 40.1 82 4S 
Z7J 34.1 IB 32 
1BJ - 2 - 
12 27 J I 

- OS 1 1 

-Mil 

- 1J> 1 J 


Source BBC 


'AbfarsvfafioaK Con=ConaanntfMa; 
DOP-Democratfc Ulster Unionists; 
LobaLabour; LDeUboral Democrats; 
OUPtaOfflcM Uttar UfltanM; 


party; SNP=SeoUMi Wa tto n aBU party 

P i— maii ta ry youp abbroilHon*: am 
bottom fox* pago Ma seetton 


Rrst-pest-post In OB; single trarelarabto 
vote In K Ireland 

Compteaory voting! No 

mounted campaigns against 
the government’s domestic pol- 
icies - against tax increases, 
public spending cuts and such 
like - rather than ones exalt- 
ing the virtues of Europe. 

Mr Major focused on Europe; 
the c entr al planks of Zds cam- 
paign were a vision of a multi- 
speed Union in which Britain 
might opt out of further inte- 
gration, preservation of the 
national veto and scepticism 
about a single currency. The 
anecdotal evidence suggests 
that while the electorate was 
determined to punish the gov- 
ernment, it preferred its mes- 
sage on Europe. 

So the immediate mood 
within the government was 
one of a curious sense of relief. 


The Conservatives recorded 
their worst performance on 
record - the party has never 
before received less than 30 per 
cent of the vote in a national 
poll - but it was not quite as 
catastrophic as feared. 

Mr Mhjor, who would have 
faced intense pressure to 
resign as prime minister had 
that number dropped into sin- 
gle figures, now looks secure at 
least until the autumn. He 
plans within a few weeks to 
reshape his government with a 
big reshuffle of cabinet portfo- 
lios. The inng summer parlia- 
mentary recess will then offer 
him a respite from the con- 
stant carping about his leader- 
ship on the Tory backbenches. 

But the respite will be tem- 
porary. Labour, which won 45 
per cent of the vote against the 
Conservatives 28 per cent, 
made the electoral break- 
through in affluent southern 
England which has so long 
eluded it The next general 
election is at least two years 
off but the government is now 
more threatened than any time 
since the then Margaret 
T hatcher entered 10 Downing 
Street in 1979. 

Mr Major's party is still 
deeply divided also over 
Europe, Even before all the 
votes had been counted, the 
irrecoDdhabie sceptics among 
Tory MPs at Westminster were 
calling fin: a still more nation- 
alist stance. They want the 
prime minister to veto at the 
Corfu summit next week the 
appointment of Mr Jean-Luc 
Dehaene as the nest president 
of the European Commission. 
But their demands were 
matched by equally strident 
rails from the mains tream cen- 
tre-left of the party tar the gov- 
ernment to abandon its 
appeasement of the sceptics. 


Bedfordshire & M&ton Keynes 
Eryl McNa&y (Lab) 

Birmingham East 
Mb Christine Crawley (Lab) 
Birmingham West 
John Tomfinson (Lab Co-op) 
Bristol 

Ian White (Lab) 

Buckinghamshire & Oxfordshire 
East 

James Ble&(G) 

Cambridgeshire 
Robert Sturdy (Q 
Cheshire East 
Brian Simpson (Lab) 

Cheshire West & Wfarai 
Lyndon Harrison (Lab) 

Cleveland & Richmond 
Dave Bowe (Lab) 

ComwaB & Plymouth West 
Robin Tewareon (LD) 

Cotswolds 
Lord Plumb (C) 

Coventry & Warwickshire North 
Ms Christine Oddy (Lab) 

Cumbria & Lancashire North 
Tony Cunningham (Lab) 

Devon & Plymouth EaatGHes 
Giles Chichester (C) 

Dorset & Devon East 
Bryan Cassidy (Q 
Durham 

Stephen Hughes (Lab) 

Essex North 4 Suffolk South 
Mss Anne McIntosh (C) 

Essex South 
Richard Howrtf {Lab) 

Essex West & Hertfordshire East 
Hugh Kerr (Lab) 

Glasgow 
m Maier (Lab) 

Greater Ma nohseter Central 
Edward Neuman (Lab) 

Greater Manchester East 
Gtyn Ford (Lab) 

Greater Manchester West 
Gary TTtiey (Lab) 

Hampshire North & Oxford 
Graham Mather (O 
Here for dshire & S hr o p shire 
David Haflam (Lab) 

Hertfordshire 
Dr Peter Trusoott (Lab) 

HgMands & Islands 
Dr Winnie Ewing (SNP) 
Humberside 
Peter Crarnpfan (Lab) 

Uehen Test & Avon 
EdWard Kallett -Bowman (CJ 


Poll ends coalition’s honeymoon 


By Thn Cogne In Dublin 

The Fianna Fail-Labour 
coalition in 

from the European Parliament 
elections with its representa- 
tion at Strasbourg intact. 

Fianna Fail, the cenlronght 
party of prime minister^ 
Albert Reynolds, secured seven 
of the 15 Irish seats, one better 
ST in 1989. while Uhmj 
managed to retain its Dublm 
seat but only after a 
series of counts on the vote 
transfers which almost saw the 
seatlost to Fine Gael, the main 

toping 
share for both coalition parties 
- but particularly tar Labour - 

bSSed that the Wmonth 

KSn with the electorate 


is over. Fianna Fail's vote has 
fallen from 39 per cent in the 
1993 general elections to 35 per 
cent, while Labour's vote has 
phmged over the same period 
to 11 per emit, albeit from an 
all-time high in 1992 of 19.5 per 
cent 

The emergence of the Green 
party, which won a seat in 
Dublin, has highlighted the 
government's inaction on key 
environmental issues. These 
include the recent commission- 
ing of the UK’s Thorp nuclear 
reprocessing facility on the 
opposite side of the Irish Sea, 
plans to push ahead with a 
peat-fired power station in the 
Irish midlands, and procrasti- 
nation over the building of a 
new light rail system in Dublin 
to ease traffic congestion. 


The Greens have a weak 
organisation nationally, how- 
ever, and still have some way 
to go before they pose a serious 
threat in national politics. 

The collapse of Fianna Fail’s 
vote in Dublin, from 33 per 
cent in 1992 to 21 per cent now, 
appears to stem in part from 
an unpopular residential prop- 
erty tax Introduced in the last 
budget. Canvassers said this 
was a common complaint of 
householders during the cam- 
paign. It must raise questions 
over the coalition's resolve to 
press ahead with its plans for a 
much-needed reform of the tax 
system. 

This and other tensions 
within the coalition are likely 
to be aggravated in the months 
ahead, as Labour absorbs the 


Kant East 
Marie Watts (Lab) 

Kent West 
Peter Skinner (Lab) 

Lancas hi re Central 
Marie Hendrick (Lab Co-op) 
Lancashire South 
Michael Hindtoy (Lab) 

Leeds 

Michael McGowan (Lab) 

Leicester 

Ms Sue WadcSngton (Lab) 
Lincolnshire & (fcanbetsMe South 
Mrs Veronica HanSstatf (Lab) 

London Central 
Stan Nawens (Lab Co-op) 

London East 
Ms Cards Tongue (Lab) 

London North East 
Alf Lomas (Lab) 

London North West 
Robert Evans (Lab) 

London North 

Mrs Pauline Green (Lab Co-op) 
London South A Surrey East 
James Moorhouse fO) 

London South East 
Shaun Spiers (Lab Co-op) 

London South timer 
Richard Balfe (Lab Co-op) 

London South West 
Ms Anita Pollack (Lab) 

London West 
MtefteeJ Enott (Lab) 

LotMens 
David Martin (Lab) 

Merseyside East & Wigan 
Terence Wynn (Lab) 

Merseyside West 
Kan Stewart (Lab) 

Midends Wtest 
Simon Murphy (Lab) 

Norfolk 

Okra Needle (Lab) 
Northamptonshire & Btaby 
Mrs Angela Bifingham (Lab) 

Unelhem hmlnnril 

Nonnon ireianq 

The Raw lan Paisley (DUP) 

John Hutw(SDLP) 

James Nicholson (UUUP) 

Northumbria 

Dr Gordon Adam (Lab) 

Nottingham A Leicestershire North 
West 

Ms Mel Read (Ub) 

Nottinghamshire North A 

Chesterfield 

Ken Coates (Lab) 


lessens of this election and 
tries to regain the popularity it 
achieved as an assertive oppo- 
sition party before entering the 

The danger Is that any fault- 
lines that appear within the 
coalition are likely to he 
quickly exploited by Fine Gael, 
which has been buoyed by its 
relative success in stabilising 
its vote at 24 per cent nation- 
ally, after successive poll 
humiliations. 

The other main opposition 
party, the Progressive Demo- 
crats (PDs), polled only 6£ per 
cent and look set to lose their 
Munster MEP to an indepen- 
dent. In the local elections, 
Sinn Fein, the political wing of 
the IRA. has won more council 
seats nationally than the PDs. 


■ Dubtet 

Mai And re ws. Fianna FSB. 
Mary Banotti, Fine GaeL 
Bernfe Malone, Labour. 
Petrida McKenna Graen Party 


■ Leinster* 

Jack Fitz simm ons, Fianna FaL 
Nuala Ahem, Green 
Liam fyfand, Fianna fiai 
Alan GWs,Pne Gaul 
“Subject to a recount 

■ Munster 

Gerry Cottns, Rama Fail 
Brian Qrqiwiey, Rama Fan 
John Cu ahna hen. Fine Gael 
Dos CMaSay, Progressive 
Democrats 


■ Comacht/Ufatter 

Pat the Cope Gallagher, Fianna Fall 

MarkKSHoa, FtannaFofl. 

Joe McCartn, Fkw GaeL 

Based on preBmfnary results issued 
by tfw European ParSament FuB 
nxutts w8l not be known for several 

weeks. 


Peak District 
Mb Arlene McCarthy (Lab) 
Scotland Mid & Fite 
Alex Falconer (Lab) 

Scotland North East 
Dr Allan Macartney (SNP) 
Scotland South 
Alex Smfih (Lab) 

Sheffield 

Flogw Barton (lab) 

Somerset & Devon North 
Graham Watson (LD) 

South Downs West 
James Provan (C) 

South Wales Central 
Wayne David (Lab) 

South Wales East 
Mis Glenys Kinnock (Lab) 

South Wales West 
David Moms (Lab) 

Staffordshire East & Derby 
Philip Whitehead (Lab) 
Staffordshire West & Conglaton 
Michael Tapptn (Lab) 

Strathdyrie East 
Kenneth Coffins (Lab) 

Strathclyde West 
Hugh McMahan (Lab) 

Suffolk & Norto* South West 
David Thomas (Lab) 

Surrey 

Tom Spencer (C) 

Sussex East & Kent South 
Sir Jack Stewort-Clari* (C) 

Sussex South & Crawley 
Brendan Donely (O 
Thames VaBey 
John Stevens (Q 
Tyne & Wear 
Aten Donnelly (Lab) 

Wales Md & West 
Ms Buried Morgan (Lab) 

Wales North 
Joe WSson (Lab) 

Wight & Hampshire 
South Roy Perry (C) 

Wiltshire North & Bath 
Dr Carofirra Jackson (C) 
Worcestershire ft Warwickshire 

South 

John Corrte (C) 

Yorkshire North 
Edward MeMinan-Scotr (C) 
Yorkshire South West 
Tom Megahy (Lab) 

Yorkshire South 
Norman West (Lab) 

Yorkshire West 
Dr Barry Seal (Lab) 


I 


Population: 3.5m 
Scats; IS 



i (Turnout 37%; 1989. 684K) 

PMfeswt % vote Seats 

grog] VA -ffl-WBS 

HM 37.5 7 6 

EFP 21.S 4 4 

Graens - 2 ■ 

res ft5 1 1 

Lin 12.0 1 1 

HA « » I 

BBW M 0 1 

LOT -3^-1 


Sources State redte and MmUon 


‘Abbreviations: DLsDauwcrStle Left; 
KUHna Oast; F FaRa rm a Reft 
lUdndapsndent Lffierat 
kKMndspandeni; PD=ProBrsaslve 
Democrats 

Paritemuwary group ebbr m i u tkxg: seo 
bottom front page mis section 


PnjportkrfoJ whh single mmsterabl*> vote 
Compulsory voting: No 


Voters keep faith 
in ruling coalition 


By Emma Tucker in Brussels 

European elections coincided 
with national legislative polls 
in the grand Duchy of Luxem- 
bourg. Its 225.000 voters 
showed their taith in the rul- 
ing coalition of Christian 
Socialist and Socialist parties 
which has been in power since 
1984, by returning them virtu- 
ally intact. 

Mr Jacques Santer, the 
prime minister and leader of 
the Christian Socialists, lost 
one seat to take 21 of the total 
seats of 60. The Socialists lost 
one seat to win 17. 

Mr Santer is expected once 
again to choose the Socialists 
as partners in government. 
The main opposition party - 
the liberal Democratic party - 
gained one more seat to tab? a 
total of 12. 

For the Strasbourg elections. 
Mr San ter s party lost one seat 
to hold only two of Luxem- 
bourg's generous allocation of 
six. This seat passed for the 
first time to the Greens, whose 
leader. Mr Jup Weber, burst 
into tears. 

The win came as a genuine 
surprise to the Luxembourgois 
who had been expecting the 
Greens to follow trends else- 
where in Europe and lose 
ground. But Mr Weber appears 
to have benefited from con- 
cerns over the opening of an 
industrial waste plant on the 
Belgian border and the exten- 
sive construction of motorways 
across the country. 




Reputation: 0.4m 
Seats: 5 ~ 


Rentes (Turnout 90.0%; 1989, 87.4%} 

Party* 

Parfai Hunt 

% vote Seats 



•94 -89 WOO 

CSV 

EPP 

314 34.9 2 3 

LSAP 

PES 

248 25.4 2 2 

OP 

LOT 

I&8 aao I t 

Greens 

Greens 

18L8 - 1 - 


Source: AFP W t hnn t M at OZOO QMT 
yesterday 


'Abbreviations: CSV-Christian Social 
People's party; DP^Ownocratlc party; 
LSAP-SoaMR Workers' party 


Pteflamentery group a bb rev ia tions: see 
bottom front page this section 


Proportional from ruUatut fats 
Compulsory voting: Yes 


■ LSAP 

Jacques Poos. Mady 

Delvaux- St ehres 

■ DP 

Lydre Wurth Poller 

■ CSV 

Jean -Claude Juncker. Jacques 
Senior 

■ Greens 
Jup Weber 


GJW 


GJW Government Relations 

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EU affairs who work with the Commission, the 
European Parliament and Council of Ministers 

• monitoring legislation and policy 

• political and corporate strategy 

• lobbying and contact building 

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across Europe since 1980. Wc can help to make 
your voice heard in Brussels and in Strasbourg. 


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Brussels • London • Prague • Budapest 








10 


FINANCIAL TIMES TUESDAY JUNE 14 1994 


European Elections 











On one optimistic reading, 
these elections have been good 
for Europe. . . solidly 
pro-European lists have, except 
for Italy, been reinforced. 
Chancellor KohL to whom 
Europe already owes much, 
has held firm, while in France 
the “pro" vote has for 
outweighed the “anti" vote. 

But there is another more 
pessimistic interpretation. The 
new Strasbourg parliament 
will be less "European". The 
level of participation in Europe 
shows the rise of indifference 


towards the Union, and only 
improves when domestic 
politics are most at stake - 
as in the desire far a change 
in government in Britain. 
Spain, a political honeymoon 
period in Italy, improvement 
in the German economy. 

France showed itself on June 
12 to be fragile, uncertain, 
disoriented, and fragmented. 

It is being pulled apart by 
“populisms". An extreme 
right-wing xenophobic 
nationalism continues to ft fln g 
aver tt. 


Austria’s "yes" to Europe 
would appear to nm counter 
to the lukewarm and duQ 
elections campaigns for the 
European Parliament held in 
those countries that are 
already members of the 
European Union. StQl. this 
contradiction is largely 
illusory. Hie Union may have 
its flaws, but it is indisputably 
a zone of peace, stability and 
prosperity. This, combined 
with the large common 
market, exerts a strong 
attractive pull on European 


countries outside the EU. 

Within the member states 
themselves, these 
achievements are taken for 
granted. Hie main parties do 

llOt diffe r ftmdam mi tally qq 

the usefulness of European 
co-operation. 

. . .These elections have 
hardly increased the 
legitimacy of the Enropean 
Parliament . . The EU states 
must allow the formation of 
European parties and make 
the Europariiament a full- 
fledged representative body. 


Brussels and WaHonia must, 
from now on. live with an 
extreme right like that which 
Flanders and France has 
already suffered for several 
years. We thought that we 
would be preserved from this 
pent Now it hits us with full 
force. . . These extremist 
temteTHTip*; cannot be 
eradicated in a few years. They 
are the result of an entrenched 
malaise th at ifeTparw^ 
long-term work from the 
democratic parties. . . The vote 
for the extreme right is a cry 


from people who once believed 
in the remedies put forward 
by the Socialist party but who 
have been disappointed by the 
scandals that lave cast 
opprobrium on the ruling 
parties. These voters, often 
SB immigrant, nei ghb ourhoods, 

see "others” as the scapegoat 
The democratic parties must 
cot sit bade ynd comfort 
themselves simply by 
denouncing the real danger 
of the extreme right They 
have to act by tackling the 
roots of the rot 


The concern expressed that 
only national Issues have been 
at stake in the European 
elections may be well-meant, 
but it is hardly politically 
thought out The problem with 
the direct election to the 
European parliament is now, 
as it always has been, that 
the voters don't know what 
they are voting for. There is 

none of the normal 
confrontation between 
"government or opposition". - • 
Voters who are only roughly 
informed about the 


circumstances In other 
member states can hardly b« 
expected to calculate the 
consequences of their votes. 
The Germans send a good 16 
per cent of European member* 
of parliament to Strasbourg 
even if there were a massive 
level of support for one party. . 
It would have only a modest . 
effect on building a majority 
In the parliament - that Is 
both unavoidable and logical. 
But it is also dear that it 
depresses the election 
turnout. 


GERMANY 


FRANCE 


Victory sweet for Kohl 


By Quentin Peel In Bonn 

Chancellor Helmut Kohl could 
not disguise his glee, nor wipe 
the smile from his face, when 
he appeared on German televi- 
sion close to midnig ht, on Sun- 
day. 

His Christian Democratic 
Union had confounded the 
opinion polls and the pundits, 
and emerged from the Euro- 
pean elections stronger than in 
1989. The party saw an 
increase of 2.5 percentage 
points in its support, in spite of 
a sharp economic recession 
and record unemployment lev- 
els in both halves of the coun- 
try. 

He saw it, justifiably, as vin- 
dication for his absolute 
self-confidence, and a refusal 
to bow to apparent unpopular- 
ity in the polls. In particular, 
he forced his party to fight the 
campaign on a platform of firm 
commitment to European inte- 
gration, in spite of signs that 
the policy could be unpopular. 

Mr Rudolf Scharping, leader 
of the Social Democratic party 
(SPD) and his challenger for 
the chancellorship next Octo- 
ber. looked bemused: his party, 
only four weeks ago enjoying a 
clear lead in public favour, had 
lost more than 5 percentage 
points, and recorded its worst 
result in a European election 
since they began in 1979. 

The expectations had been 
for a strong protest vote and a 
low turnout. Everyone cau- 
tioned against reading too 
much into the result to predict 
what will happen in October. 
But the protest turned out to 
be against the main party of 
opposition, and the turnout 
was respectable at nearly 60 
per cent. 

It was a day of unlikely bed- 
fellows: a good day for Mr Kohl 
and for the Greens, who also 
Improved their 1989 showing 
by a couple of percentage 
points. Mr Kohl’s Bavarian 
allies, the Christian Social 
Union (CSU), lost a little sup- 
port, but still emerged hand- 
some victors in their home 
state - with easily enough 
backing to win seats in the par- 
liament And the Party of Dem- 
ocratic Socialism, the former 
East German communist party, 
almost made it to Strasbourg, 
thanks to a strong vote In the 
five eastern Lender. 

On the other hand, it was 
not only a severe setback for 
Mr Scharping and his party. 



Results (Turnout 58.0%; 1889, 6Z39fi) 

p«tr 

Partfamaut 

% vote Seals 


to°ep 

■94 *89 *04 *89 

SPD 

PES 

322 37 J 40 31 

CDU 

6PP 

32J5 ZL5 39 2S 

Greens 

Greens 

Iftl M 12 8 

CSU 

&P 

BA 82 8 7 

FDP 

UJfl 

4.1 5.6 0 4 

Hep 

NA 

34 7.1 8 6 


Source: Chfttf doctoral officer 


•Abbreviation*: SPD=Sodaf Democrat* 
CO Unchristian Democratic Union; 
CSU=Chrtstian Social IMon; FDPmFtm 
D emo cra ts; Ifapda p u M c— 

Pai H i n r xntjr y qiui^i ifakiSitaloBC HM 
bottom font peg* V** section 

■ Sectoral o nt n i u 
Proportional tram regional Kao 
Compulsory rating: No 

It was a bad day for Mr 
Kohl’s junior partners in the 
coalition, the Free Democratic 
party (FDP), which failed to 
get the 5 per cent support nec- 
essary for seats in parliament 

It was also a bad day for the 
Ear-right Republicans, down 
from 7.1 per cent in 1989 to 3.9 
per cent 

Last of all it was a bad day 
for the anti-Maastricht cam- 
paigners. such as Mr Manfred 
Brunner's Free Citizens’ Alli- 
ance, which just managed LI 
per cent support 

On the whole, the German 
electorate was conservative 
with a small c. sticking to the 
devils they knew: Mr Kohl in 
the west, the CSU in Bavaria, 
and the old co mmunis ts in the 
east along with the CDU. 

In spite of the surprising 
changes, the outlook for Octo- 
ber remains too close to calL 
On each side of the political 
divide, neither combined left 
nor combined right can com- 
mand a clear coalition majority 
on the basis of these figures. 

The FDP, on past experience, 
must be expected to squeak 
back over the 5 per cent hurdle 
for the national election in 
October. The PDS can be 
expected to do the same. The 
Republicans, for the time 
befog, appear to be finished. If 
neither the SPD nor the CDU 
can break out of support at 
around one-third of the elector- 
ate, they may be condemned to 
form a grand coalition. 


■ spo 

Klaus Hfinsch, Magdalene Hoff, 
Gerhard Schmid. Erika Mann, 
waftted Kuckelfcom, Heinfce SaSach, 
wau GSrtach, Constanze KraW, Wffl 
Ftothtay, Dagmar Rotb-Behrandt, 
MechthBd Rothe, Wfealm Ptecyk, 
Ussy Grtinar, Herbert Giants. Gunter 
Liltlge. Christa Bandzk>-Raih. Ulrich 
Stockmann. Gerfwd Betz, Peter 
Hetwin. Karin Jana, 

Heinz Wndermann. Bernhard 
Rapkay. Karin Junker, Rolf Linfcohr, 
Barbara Waller. Helmut Kuhne, 

Jarmfe Sakeflariou, Bamd Lange. Raff 
Walter, Barbara Schmidbauer, Martin 
Schutz, Dettev Samland, 

Rosemarie Wemheuer, Evelyns 
Gebhardt Jutta Haug, Marta 
Zimmerman. Anramarie Kuhn, Axel 
Schafer, KtausRehder. 

Chnstof Tannert 

■ CDU-CSU 

Retmer B0ge, Georg Jaraumbowski, 


MEPs 


Hana-Gert Mitering, GodeUeve 
Quiethoudt-fto ncW. Karstan 
Hoppenatsdt, Brigitte Langenhagan, 
Hedvvtg KeppethofT-WIechert. GQnter 
Rfnsche, Briar Brok, Kart- Heinz 
Rozenz. Marlene Lenz, Hws-Peter 
Lies®, Kiat Malangre, Klaus- Heiner 
Lehne, Christoph Konrad, 
Peter-Michaai Mombaur, Hartmut 
Nassauer, Marfas Mosiek-Urbahn. 
Thomas Mam, Werner Josef 
langen, Otto Bantong, Christa 
Barbara Kbsa, Slegbert 
EXemut Theato, Karl von Wogau, 
Honor Funk. Wtnfried Josef M wired, 
Konrad Karl Scfcwaigar, Renate 
Hefntsch. Doris Pack. Peter 
Ktttetmaro, Anne Karin Gtese, Alfred 
Gomoflca. J Organ Schrader, Lutz 
GoepeL Stanislav T»ch, Kut 
Oswald Horst SchneRhardfc Rolf 
Berend, Dteter-Lebrecht Koch 
■ FDP 

Lfta WOrfei, Mechthid von Aiemann. 


Mantmd Vohar, Stelanie Wotf, Klaus 
Wetfig, Georgias C hatemaria to, 
Annette Severs. Lite Georgi, Ksri 
Partsch. Martin Hotzfuss, GiseJa 
Zakflar, WUried Hofmann 

■ Green 

Claudia Roth.WoHgang Uftnarm, 
HBtrud Brayer, Friedrich Otto Waff, 
Bteabeth Schroedtar. 
Friedrtch-Wnhebn Graefe zu 
Baringdorf. Undine Bloch von 
Btottnftz, Daniel Marc Cohn-Bendtt, 
Wolfgang KrabeJ-DOrfier, Irene 
Sottwedel-Schafer, WSfried 
Tafcflmper. Edith Muter 

■ CSU 

Ingo Friedrich, Ursula Schleicher, 
Otto Habsburg-UXhringen, GOnther 
Maren, Xavar Mayer. Markus Ferber, 
Edgar Schiedermeier, Bamd Posselt 
Based on preirttinaiy resufis Issued 
by the European Partament FuB 
results wS not be known tor several 
weeks. 



Bad omens for 
presidential polls 

mentation wore the lists of 


By David Buchan in Paris 

France’s Euro-election results 
were yesterday being read 
mainly for what they portend 
for next May's presidential 
election, the ntenriate prize in 
French politics. 

Hie omens are worst for Mr 
Michel Rocard who led his 
Socialist party to its lowest 
vote score (L4J> per cent) since 
the early 1970s. This has 
reawakened interest in the 
candidacy of Mr Jacques 
Delors as the only plausible 
alternative Socialist stan- 
dard-bearer for the Elysde. The 
European Commission presi- 
dent said yesterday he was still 
“absolutely" loyal to Mr Roc- 
ard, and there is no reason to 
disbelieve him. But the fact 
that this loyalty cannot be 
proved until December - when 
Mr Delors leaves his Brussels 
post - gives Mr Rocard a diffi- 
cult six months to come. 

However. Sunday’s vote also 
threatens to prise the centre- 
right apart. The official Euro- 
list of the governing UDF-KPR 
coalition gained only 25J> per 
cent of the vote. This poor per- 
formance led some senior con- 
servatives yesterday to ques- 
tion both the wisdom and 
necess ity of trying to field a 
stogie UDF-RPR candidate for 
the presidency. 

Has questioning bodes 01 for 
Prime Minister Edouard Balla- 
dur, whose presidential hopes 
rest very much on his suppos- 
edly consensual appeal to both 
coalition parties, but well for 
Mr Jacques Chirac, who has 
the firm l au n ch pad of his RPR 
party machine and may soon 
use it to put his Elysfee cam- 
paign into orbit If Mr Chirac 
does this find Mr Balladur , who 
is of the same RPR Gcmllist 
party, continues to sit on his 
hands, then one or several 
presidential candidates from 
the UDF may emerge. 

But by the time the final 
round in the presidential elec- 
tion comes around next May. 
the race will probably be down 
to two runners, wearing the 
colours of right and left. Under 
these circumstances, even Mr 
Rocard’s losing presidential 
score would not be less than 
44-46 per cent (depending on 
his right-wing rival), according 



Results (Turnout 53.5%: 1989. 48.7%) 


Party* PMtemnt Kioto Sasto 

group *94 ^ *94 '89 


UDFfflPH 

BWU 

215 

289 

29 

26 

PS 

PES 

143 

23JS 

16 


M 

HA** 

113 

• 

n 

- 

BE 

wr 

122 

• 

13 

- 

re 

ER 

ms 

11.7 

ID 

10 

PCF 

UJ 

u 

7.7 

a 

7 

Gnwos 

Greens 

23 

ms 

0 

9 

Caoko 

EPMJJR 

- 

84 

- 

7 


Source: MMstry ol Interior wDuhAm 
'A bbrastaSons: AN-otter Bnpi 
group; C— IrawOsnfo pty - W M of 
UDF; FN^ront National; 
KMmrin: P8«soc!aitot*: 
REsftwScal Energy group; UDF/ 
RPR-OfecanSsn M of conaMvMfcw 
ml RsRy lor tts RspuMc 
~ EkpKtod to Join n« RES groupkig; 
for group sbbravfsdonK mo bottom 
font pegs Site Motion 
■ Mo etora l sjrstseu 
Proportions! tram nonum f bs«s 
Compulsory voting: ... No 


to opinion polls conducted over 
the weekend. These provided a 
forcefiil contrast to the frag- 
mentation of Sunday's Euro- 
vote, resulting from the pro- 
portional system which France 
uses only in Euro-elections. 

The two big surprise splin- 
ters emerging out of this frag- 


■ UDF-RPR Union 
Dominique Bauds, HeMne Canto 
CEncausso. Yves GaB&nd, Christian 
Jacob. Jean-Plena Raftarin, Annate 
Gutoobertiftra. Nicole Fontaine. AWn 
Pompidou, Yves VenraenJe. 
Marie-TWrtae Hermange, 
Jeen-lous Bourfanges, Jacques 
Camay, Frangoise Grosstta, Blaise 
AMo. Robert Hersant. Anne-Marie 
Schaffriar, Francis DecourriAra. 
Christian Cahrol, Bernard Steal, 

Jean -Claude Pasty. AncM Soulier. 
Jean-Pierra Bazin. Pierre 
Bemard-Reymond, Raymond Chess, 
Georges de Brgmond tfAra. Jean 
BaggonJ, Jaan-Piarre B4b6ar, 

Girard d'Abovflla. 

■ PS 

K®chel Rocard, Catherine Trautmann, 
Bemad Kouchner, Oartele Darras. 
Andrd Ladgnel, Nicole Pay, Jack 
Lang, Fr£dArique Brecfin. Pierre 
Moscovid. EBs^aeth Qidgou, 
Jean-Plane Cot, Pervencbe Beres, 
Francois BamartSnL Mteb&Je 
Undeparg. G*wd Caudron 

■ AN (Other Europe) 

PWBppe be VBSers. James 
Goidamith, Charles de Gaulle, 

TWenry JearvAerra. PhTippe Martin. 


“Energie Radicaie". led by Mr 
Bernard Tapie. and of TAutrt 
Europe", led by Mr Philippe da 
Villiers. Both scored around 12 
per cent, giving them 13 seats 
each in Strasbourg. Neither, 
however, can be regarded as ft 
serious presidential candidate, 
at least not yet. 

Mr Tapie has for more press- 
ing business to pursue than a 
distant dream of the Elysde. 
Election to Strasbourg may 
provide him with additional 
parliamentary immunity from 
investigations into bis compa- 
nies and properties. 

What the controversial Mr 
Tapie has done is to take over 
the smnll Muuvement des Kadi- 
caux de Gauche (MRG) party, 
without changing its tradi- 
tional pro-Socialist orientation, 
to boost its support with his 
personal charisma. Having him 
as an ally is therefore more of 
a judicial problem than an 
ideological challenge to the 
Socialists. To the extent that 
Mr Tapie is still out of court 
then. Ids support can probably 
be safely added to that of the 
Socialist party proper next 
May. 

By contrast Mr de Vifliers’s 
anti-Maastricht appeal is a seri- 
ous ideological test to the cen- 
tre-right's unity. 


Fran^oise SeWar. Georges Berthu. 
Harra Fabre- Aobrespy. Dorrtniqua 
Soucbat, Aime-CWtoHne Poisson. 
FrMSne Strtby, Edouard Des Place®. 
Mart-Fiance de Rose 
> Nations! Front (ABez La France!) 
Jean-Marie La Pen. Bruno Megret 
Bnmo GoUniach. Jean-Ooude 
Maibnez. Cart Lang. Marie-Frame 
Stebcs, Bernard Antony, Yvan Blot. 
Jean-Marie La Cnevafier, Femard La 
CtwvaSer, Joan- Yves Le Gafiou 
« RE (Tapie) 

Bernard Tapie, Jean -Francois Hory, 
Catherine Latorttera. Chrlstme 
Taubira-Oelanon. Noel Mamtee, 
Michel Qary. Adwnrt Saigon, 

Bernard Castagnade, Defile Verrier, 
Pierre Pradler. Christine 
Bartnet-Mayer. Dominique 
Saint-Plene, Antoinette Fbuqua 
B PCF 

Francis Wurtz, Syfvaine Alnardi, 
PWfippe Herzog, Grille Moreau. 

Rend Piquet, Mirefte Elmaten, Aline 
Palter 

Based on prafimway results issued 
by the European ParKmtent Rjff 

results wtil not be known for several 
weeks. 


MEPs 


NETHERLANDS 


BELGIUM 


Christian Democrats cling 
on, but voters stay home 


By Ronald van de Kroi 
In Amsterdam 

Tbe outcome of the Dutch 
elections for the European Par- 
liament brought an unexpected, 
victory for the Christian Demo- 
crats, portly softening the blow 
of their bruising defeat a 
month earlier in the country's 
general election. 

The Christian Democrats 
won an unchanged 10 seats, 
making the party of outgoing 
prime minister Ruud Lubbers 
the largest Dutch party in the 

European assembly. This 
marks a recovery from the May 
general election, when the 
Christian Democrats were 
replaced as the biggest party in 
the Netherlands by Labour. 

Labour won eight seats in 
the European Parliament, also 
unchanged from their 1989 
result. However. Dutch repre- 
sentation in the European Par- 
liament has increased to 31 
seats from 25, meaning that 
both parties have seen relative 
declines in popularity. 

Voter turnout for the Dutch 
Euro-elections fell to a record 
low of 35.6 per cent, down 
sharply from 47 per cent five 
years ago. Mr Frits Castricum, 
a successful Labour candidate, 
said, “With this kind of turn- 
out, we all lose." 

As in the general election, 
the biggest gains were 



Results (TummA 3S£%; 1989, 47.2%) 

Parti- 

Fmfljruant 

%rate Sab 


SWW 

W -89 ■« 'SS 

GOA 

BT 

308 346 10 10 

PVDA 

PES 

229 30.7 « 8 

WD 

LDR 

17ft 13ft 6 3 

OSS 

LDR 

11.7 6ft 4 1 

SEP 

NA 

7ft 5ft 2 1 

Cream 

Green 

3.7 7.0 1 2 


Source European Par te ment 


VUrbra i H a Bo na. CDAwCH’toain 
Democrats; PVDA=Laboir parly; 
SOPaStaatkunSg GeraConnmnfe; 
WDcFreedom and Democracy party 

Partemeragy group ebtewlaUu ne; ace 
bottom front page Ms section 

■ Electoral urit m ; 

Proportional from naUooal Bsts 
Compuboty voting: No 

recorded by D66, a left-of-cen- 
tre party which jumped to four 
seats from one in 1969. and the 
right-wing Liberals, who dou- 
bled their previous three seats. 

The Christian Democrats 
hope their recovery at the polls 
may mean a small boost to Mr 
Lubbers’ chances of succeeding 
Mr Jacques Delors as president 
of the European Commission. 
The campaign was short and 


MEPs 


■ Labour 

H d 'Ancona Frits Castricum, P 
Dankert, L van Blade!, W van Vtetzen, 
M van PUtenJ Welrsma. A Mstten 

■ CMstiai Democr a t s 
JRH Maji-Weggen, W G van 
Veizen, PAM ComeksserU 

Son nevoid, M G H M Oomen-Ruijten. 
K H M Pegs, J L Janssen van Raay, 
A M Oostiander, B Prank, PLM Pex 

■ WD 

G M de Wes. J G C Wlebertga. J E 
S Larive, J Mulder, F A W^aenbeek. 
P C Ptofr-va Corse! 

■ Green Units . 

Nel van Dipt 

■ D>66 

Jan-WHfem Bertens. Laurens Jan 
Bifcikhcrst, Doeka Sana, Johanna 
Boogerd-Quaak 


subdued and marked by “voter 
fatigue" after municipal elec- 
tions in March and the general 
election in May. 

Unfortunately for the Chris- 
tian Democrats, the low level 
of voting means the election 
cannot be seen as a protest 
against the continuing efforts 
by the other three parties - 
Labour, the Liberals and D66 - 
to form a new national govern- 
ment without them. 

Still, tbe Christian Demo- 
crats seem to have learned 
their lesson from their showing 
in the general election, when 
their support for a freeze of the 
state old-age pension caused an 
uproar. 


Dissatisfaction benefits far right 


By Emma Tucker In Brussels 

Many Belgians were shocked 
by the unexpectedly successful 
advance of the for right, not 
only in Dutch-speaking Flan- 
ders but in francophone Wal- 
lonia. A doubling of the Flem- 
ish Vlaams Blok vote and a 
sharp swing to the National 
Front in Wallonia means that 
three of Belgium's 25 seats in 
tbe European parliament will 
be occupied by the extreme 
right 

Vlaams Blok, the Flemish 
extremist party that wants 
independence for Flanders, 
lifted its share of the vote from 
6.6 per cent in 1989 to 12.6 per 
cent, increasing its seats in the 
European parliament from one 
to two. 

More startling - the Vlaams 
Blok had already made its 
presence felt in the 1991 
national parliamentary elec- 
tions - was the popularity of 
the National Front in Wallonia. 
It won 7.9 per cent of the vote, 
from nothing in 1999. Both far- 
right parties had campaigned 
on an anti-Maastricht ticket, 
although few commentators 
yesterday believed that it was 
this that had encouraged vot- 
ers to support them. 

Being “anti-Maastricht" 
appeared to be less about 
opposing a federal Europe and 
more about tapping into 
resentment prompted by the 
presence of so many well-paid. 



nemos (Turnout 90.7%. 1389, 90.796) 


pair ftorfemant Kvoto Scab 

pwp *94 WM *88 


CTP 

a 1 ? 

T7.1 

21.1 

4 

5 

VLD 

tin 

lift 

10ft 

3 

2 

PS 

PS 

lift 

14ft 

3 

5 

SP 

PS 

lift 

12ft 

3 

3 

Pffl. 

LDR 

9ft 

7 2 

3 

2 

n 

Si 

7ft 

4.1 

2 

1 

PSC 

BV 

7ft 

8.1 

2 

2 

Agtoev 

Stems 

67 

7.8 

1 

1 

Eh*> 

Gresns 

4ft 

6ft 

1 

2 

VD 

RSW 

4ft 

5ft 

1 

1 

re 

ffl 

2ft 

- 

1 

- 

CSP 

BV 

02 

- 

1 

- 


Source: Mnfstnr of SifBrfor 
-Abbreviations: CSPsCteteSsn Social 
POriy; CVMMsttmt People's Party; 
Ftfaffont National; PS=Pmti Sodateta; 
SP fiorMrt fnirfr. FSPaCtefaflm 
SOCM Party, PRULBreraJ Reform party; 
vnnmsimiininlrVTn rinminh Itinnfi 
and Dsmocrats; VUsVaduunto 

Porflemartary group stobrovtoflona: Me 
bottom (ram page Mb aoeflon 

■ B ae t a ra l ayata nw 
Proporti o nal from regional Pals 
CaajMJsonr wtog: — Ves 

tax-exempt foreigners in Bel- 
gium's capital, home to tbe 
European Union's main tositu- 
tious. 

“The essence of their appeal 
was that they were racist and 
anti-foreigners," said Mr Died- 
erlk Thibaut, a political ana- 
lyst at Kredietbank, adding 


that extreme-right parties had 
also benefited from general 
and widespread dissatisfaction 
with tiie traditional parties. 

The election’s other big sur- 
prise was that the Flemish 
Christian Democrats - Prime 
Minister Jean-Luc Dehaene’s 
CVP party - maintained their 
position as the ruling party in 
Flanders. 

The revamped Flemish Lib- 
eral party - the VLD - had 
threatened to upset the CVP’s 
hegemony, untouched since 
the last war. a threat backed 
up by opinion polls over the 
past two years. 

In fact, the CVP share of the 
vote dropped to 27.4 pm- cent in 
Flanders, from 34.1 per cent, 
their seats foiling from five to 
four. The VLD meanwhile, 
made only a paltry gain from 
17.1 per cent of the vote to 18.4 
per cent, an increase of (me 
seat to three. 

The francophone Liberals 
had a similar ly disappo inting 
day, their share of the vote ris- 
ing from ZL8 per cent to 24.2 
par cent 

Tbe relative strength of the 
CVP is good news for the rul- 
ing coalition, should Mr 
Dehaene depart from the gov- 
ernment to become president 
of tbe European Commission. 
His successor, backed by Sun- 
day’s election results, would be 
in a stronger position and thus 
better able to hold tbe coalition 
together. 


MEPs 


■ SP 

Freddy WUtockx, Anne Van Lancker, 
Steve Stievaert 

■ PS 

Jose Happart, Raymonds Dury. 
Claude Desama 

■ CVP 

Leo Tlndemans, W3fried Martens. 
Marianne Thyssen, Ra/ Chant erie 

■ PSC 

Gerard Deprez, Fernand Herman 

■ Flemish Uberala and Democrats 
Arcwmle Neyta. Wily de Clercq. 

Mhr» Kestetyn-Sterens 

■ VU 

Jaak Vandemeitebroucke 


■ PRL 

Jean GoL Antoinette Spaak, Ama 
Andre 

■ Anriirv 
Magda Aetvoet 

■ Ecolo 
Paul Lannoye 

■ VtswnsBtofc 

Karel OiBen. Frank Vonhecko 

■ FN (National Frond 
Daniel Foret 

Based bn pna&rirtary msutts tssvod 
by toe European Portiamont FuB 
results wflr not be hnom for several 
weeks. 


to Wallonia, the Socialist 
party’s woes, brought on bv 
corruption scandals, were 
reflected in a massive g per 
cent drop in their share of the 
vote from almost 40 per cent in 
foe last European elections to 
just under 30 per cent. 


"The essence of 
their appeal was 
that they were racist 
and anti-foreigners* 


significant, t 
result . . we 


Acuities. 


the French-speaking ( 
Democrats. Their shar 
vote dropped to IS.ft < 
from 21 per cent. 

Tbe Green parties - 1 
toe French side and Ai 
the Flemish - which 
well in the 1989 electie 
to improve on that e 
successes. Ecolo's shai 
vote dropped to 13 j 
from 16.5 per cent, thi 
Calling to only one fri 
Agalev also lust , 
although it tnaintoined 
seat. 

(hie explanation for t 
back was their sup s 
ecotaxes". very unpoi 
Belgium, although oth 
mentatoTs suggested ti 
reputation had been : 
following their for; 
national politics. 







TBVEE s Tuesday june m 1994 


European Elections 


% 


lastampa 




circa r» 1 9 »> 


£JSL 


EL PAIS 


THE IRISH TIMES 

- wu\ «• n*5 j au 














Silvio Berlusconi's victory in 
the European elections, his 
second electoral success in two 
monthB. has provided a foil 

endorsement for his 
government It is esgentfoi thaf 
this is fully understood not 
just because the prime 
minister chose to main? tht^e 
elections a referendum on the 
perma n enc e of his government. 
In a coun try Hl«» Italy which 
has witnessed a brusque 
decapitation of its political 
class and a redefinitlcm of its 
political landscape, the ballot 


box cm the very first occasion 
was bound to be a test of 
whether voters confirmed or 
had second thoughts about 
their preferences, 

‘Hie outcome is more than 
a mere stabilisation of this new 
political situation. Berlusconi 
and Fbrza Italia have now 
grown to encompass more or 
less one-third of the entire 
electorate. Berlusconi can 

govern (as he has sought but 
has not always been able to 
do). . . or he would be perfectly 
entitled to call fresh elections. 


Everybody's Inch has to turn 
sometime. In so far as Mr John 
Major, the prime minister, 
can be said to have pursued 
a coherent political strategy 
over the last year that adage, 
in a nutshell, has been it. The 
question his demoralised party 
is now asking itself is whether 
Its rout in the European 
elections finally marks the 
nadir of its fortunes? Mr 
Douglas Hurd, the foreign 
secretary, was yesterday 
emphatic that it did. 

The prime minister, at least, 


is HkeJy to survive the delude 
if only because ... there Is 
no obvious successor in sight 
Before he can again consider 
himself secure, however, his 
party will require better 
evidence that thdr fortunes 
will at last Improve than Mr 
Hurt was able to proffer 
yesterday. In this endeavour 
Mr Major might be helped by 
a fresher cabinet The present 
ttum have had their day, 
should make way for newer 
blood. 


The accumulated discredit 
from corruption scandals has 
eaten away at the Socialist 
vote on the centre and the left, 
and last-minute appeals to 
ideological fidelity, to avoid 
the triumph of the right, failed 
to move a demotivated and 
demoralised electorate . . . The 
government cannot avoid 
talcing these results into 
account: Felipe Gonzalez must 
call a vote of confidence in 
parliament immediately, 
because he ran only continue 
governing after yesterday's 


setback if he makes certain 
of having the support to 
guarantee an outright majority 
. .. The Popular party has 
inflicted a serious defeat on 
the Socialists. This is an 
important political and 
personal success for Jose Marla 
Aznar . . . Whatever turns out 
to be the way forward, the PP 
has wan the right to be taken 
into account in the 
fundamental decisions of 
government and to participate 
in drawing up the political 
timetable for the future. 


The voting public has 
delivered a healthy dose of 
shock treatment to the (Fuuma 
Fail-Labour) coalition partners 
in both the European elections 
and the by-elections in Mayo 
West and Dublin South 
Central. For some time there 
has been more than a whiff 
of arrogance from this 
government 

... the hope must be that 
the election results will bring 
the government back down 
to earth . . . The public showed 
its distaste for the old order 


in other ways. The strong 
performance of Ms Patricia 
McKenna (of the Green party) 
in Dublin has underlined how 
the public is casting around 
for candidates out of (he 
mainstream who will shake 
up the political establishment. 
For Fianna Fail there will 
have to be a great deal of 
sonl-searching . . . The public 
is not convinced that the 
government is addressing the 
issues that really concern 
them, specifically the 
unemployment crisis. 


ITALY 

Berlusconi achieves target 


By Robert Graham in Rome 

Mr Silvio Berlusconi obtained 
precisely what he wanted from 
the European elections and as 
a result has further strength- 
ened his position as prime min- 
ister. 

Heading a heterogeneous 
government no more than a 
month old, Mr Berlusconi had 
to obtain two things. He 
needed to boost the share of 
the vote of Forza Italia, the 
political movement he founded 
in January, to demonstrate h is 
popularity: and he needed to 
see his own position reinforced 
in relation to his other two 
mam partners in g nv wrn nen t 
- the populist Northern League 
of Mr Umberto Bossi and the 
neo-fascist MSI /National Alli- 
ance Of Mr fiianfrimwi Wni 

Anything less than this 
would have been seen as a 
cooling of electoral enthusiasm 
for his centre-right go v ernment 
which has unveiled only a 
handful of policy Initiatives. At 
this stage he should still be at 
the height of his honeymoon 
with the electorate. 

But Mr Berlusconi certainly 
gambled on winning by pres- 
enting himself in all five of 
Italy's electoral colleges and by 
ensuring that Forza Italia 
splashed out large sums an the 
campaign. Forza Italia is 
believed to have spent more 
than all the other parties com- 
bined. Indeed with budgets 



Restate (Turnout 74£M; 1900, 81.0%) 


Ptnr 

tWwneo 

gnu* 

% rote Seats 
<M *80 *M *89 

PS 

PE5 

t JB 14. 8 

X 12 

FSU 

PES 

07 

Z7 

1 2 

m 

EP P 

100 3X9 

8 26 

Gnm* 

Gram 

32 

47 

3 7 

S*P 

WP 

OS 

05 

1 1 

pos- 

PES 

141 

275 16 22 

se 

Nft 

41 

- 

5 - 

IF 

RENf 

04 

06 

S 1 

M 

HA 

145 

&5 n 4 

n 

M 

41 

m 

2 - 

Rato 

HA 

1.1 

m 

1 • 

Se*tf 

NA 

32 

• 

3 - 

R 

W 

308 

. 

27 - 

PH 

urn 

07 

• 

1 - 

ID 

M 

48 

1J 

8 2 


Source: Mntoy of Inferior 
•AMfwMh on* OC=ChrfWfan 
D uuutt« »i U UH wthuii I wng i w c 
MSMtafan Social Movamont 
POtM > artj of the Democratic Left - 
(UuMfiy CtowuhS i ftitoplJ wffti, 
MW ml mpuMcanas MDMocM 
D emocra t party; HM wMWl BCb 
Reformed Oonemsdste 
* 1900 Mtt included Dw RC 
Pa rtementoty gcup aO tnwWI o nir tee 
bottom knot pape this section 
■ P e ctora l ^ r a tora; 

Proportion* Cram rational tots 
O omplti eor y voting — No 


exhausted by the March gen- 
eral election, most parties 
made remarkab ly little effort, 
recognising Mr Berlusconi was 
still Impregnable: . 

European issues scarcely fig- 
ured in a lack-lustre campaign 


- perhaps explaining why an 
electorate, among the most 
pro-EU, should have swung 
bphtnd a leader who is a Euro- 
sceptic. The election was not 
about Europe but who governs 
Italy. 

Eo/za Italia obtained almost 
one in three of all votes, rais- 
ing its share of the vote by 
over 10 percentage points. With 
bad weather and a 75 per cent 
turnout (low by Italian stan- 
dards) this was an impressive 
performance and will undoubt- 
edly confirm Mr Berlusconi’s 
public imagt* as a winner. 

All the other parties of any 
note, whether in the govern- 
ment or among the opposition, 
lost ground. The former com- 
munist Party of the Demo- 
cratic Left (PDS), the main 
opposition party, slipped two 
percentage points to just below 
20 per cent - a poor perfor- 
mance which is bound to poi- 
son the already bitter behind - 
the -scenes debate on who 
should succeed Mr Ach tile 
Occhetto who resigned as 
leader yesterday. The centre 
was further squeezed as sup- 
port slipped to Forza Italia. 

It was also significant that 
the League slipped in its north- 
ern hparrtand at the expense of 
Forza Italia, especially in the 
cities. In a little more than two 
m onths in Milan the League 
share of the vote fell from 16 
per cent to 11 percent, in 
V mice from 14 to 8 per cent 


Mr Berlusconi was quick to 
insinuate this was the product 
of Mr Bossi’ s provocative dis- 
loyalty in the government 
coalition, const a ntly sniping at 
Forza I talia and the MSL 

But the decline in the 
League’s fortunes is explicable 
by other factors as welL It was 
the sole centre party in the 
north representing a genuine 
break with the past imHi the 
advent of Forza Italia, created 
by another northerner with 
northern values of hard work 
and tree enterprise. 

Forza Italia has become an 
att ra c ti ve alternative for those 
who dislike and mistrust the 
League’s regional narcissism 
and wish to see a re n ovated 
version of the old Christian 
Democrat Party ruling Italy. 

On the basis of Sunday’s 
result, the government coali- 
tion has not just a parliamen- 
tary majority but a majority of 
the vote. More important, 
Forza Italia and the MRT com- 
bined have almost 45 per cent 
of the national vote, which 
would probably give them a 
parliamentary majority. 

Thus Mr Berlusconi need not 
consider the unpredictable 
League a permanent partner 
and the pressure is on Mr 
Bossi to be cooperative. How- 
ever, he knows that co-operat- 
ing .too. long in government 
could submerge the League's 
identity and with it his own 
political career. 



Gianfranco Fini, MSTs leader, and ids wife cast their ballots 


Occhetto decision 
sets up tough 
leadership fight 


By Robert Graham in Romo 

Mr Achilie Occhetto yesterday 
announced he was resigning 
from the leadership of the for- 
mer communist Party of the 
Democrat Left (PDS) in the 
wake of his party's poor perfor- 
mance in the Euro elections. 

His departure opens the way 
for a tough leadership contest 
to head Italy’s main apposition 
party at a time when the elec- 
torate has swung sharply 
towards the centre-right 

The resignation of the 58 
year-old founder of the PDS 
also offers an unexpected Blip 
to tiie Berlusconi government 
as it leaves the opposition tem- 
porary leaderless. 

In a hitter resignation letter. 
Mr Occhetto attacked those 
within tire PDS who had been 
sniping at his leadership ever 
since the party's Progressive 
Alliance failed to beat Mr Sil- 
vio Berlusconi's right-wing 
Freedom Alliance in the March 
general elections. 

He had no wish to stand in 
the way of new blood taking 
over. He said that it would be 
wrong that the search for an 
innovative role of the left 
should be side-tracked by 
arguements about the leader- 
ship. 

Mr Occhetto was the first 
European communist leader to 
break with the past following 


the collapse <»f the Berlin Wall. 
He saw the need to steer the 
old Italian Communist party 
(PCI) inspired by the morxist 
teachings of Gramsci and the 
moderate example oi the late 
Enrico Rerlinguer towards a 
social democrat platform. 

The PDS was formed in Feb- 
ruary 1691 under his aegis, car- 
rying with it the bulk of the 
PCI members. A hardline rump 
refused to join the now party 
and subsequently formed 
Reconstructed Communism. 

Mr Occhetto underestimated 
the appeal of Mr Berlusconi’s 
anti-communism and his own 
identification with the old 
political system. 

Among those tipped for the 
leadership race are Mr Mas- 
simo D'Alema, Mr Occhetto' s 
long-standing heir who suffers 
from a humourless public 
image, and Mr Walter Veltroni, 
the clever young editor of 
LUnita, once the PCI mouth- 
piece and now a daily of the 
left An interesting outsider is 
Mr Massimo Cacciari, the phi- 
losopher mayor of Venice and 
former deputy. 

• The Italian list of Euro-dep- 
uties was not available last 
night due to the proportional 
system that has voters balloting 
for lists of candidates. Twelve of 
the leading politicians were 
present on the lists in all five 
electoral colleges. 


PORTUGAL 


GREECE 


> 


Unconvincing 
win frustrates 


Socialist hopes 


By Peter Wise in Lisbon 

Portugal’s opposition Socialist 
party (PS) narrowly defeated 
the Social Democratic party 
(PSD) of prime minister Anibal 
Cavaco Silva but failed to mob- 
iiiso a significant protest vote 
against a government beset by 
recession- . _ „ 

The margin, of less t ban half 
a percentage point, has frus- 
trated the hopes of Mr Antdnio 
Guterres, the PS leader, of 
using the Europe elections as a 
springboard for victory in a 
general election scheduled for 
October 1995. . 

The centre-left PS increased 
its share of the vote from 285 
per cent in the previous Euro- 
pean elections to 348 per cent, 
electing 10 deputies to the 
European parliament, com- 
pared with eight in 1989. But 
the centre-right PSD also 
achieved a gain of 1.7 percent- 
al points to 34.4 per cent and 
main tained nine MEPs. The 
PS's gains were largely at the 
expense of the araunumst CDU 
coaHtfon. which lost one of its 
four seats. The PS also wrat the 
pytrs seat allotted to Portugal, 
SKe Timber of MEPs has 
risen from 24 to 25. 

After nine years of PSD rule 
and almost two years of reces- 
sion, the PS was banking an a 
Swi convincing victory ’ to 
gain credibility as 
tive government pariy. ~~ 

margin of less thau W-OM 

election indicate u* 

yet bottomed out as 



ftjpriator9An 
Seats: Z5 


Rente (Turnout 35.7%; 1989, 51-2%) 

Party* Mete %iot» Seen 
■94 WHW 


PS 

PES 

347 245 10 

8 

PSD 

UWEFP 

343 32.7 9 

a 

CDS 

HSft 

144 14.1 3 

3 

cots 

U) 

11 2 144 3 

4 


Source: MWsiry of Interior esttneto* 

•Abto ra ri s Bons s coSeSocM Democratic 
Cmte; CIKWMed Democrats 
Wna; PS-SocMtf pmtw 

PSO-Socbd Democratic party 


No 


bottom front peg* (Me section 


Proportional trom national tots 

ComptOsory voting; 


the government had forecast. 

Real wages have fallen sharply 
and unemployment is steadUy 
rising. Farmers have seen cuts 
in production and earnings 
during the past three years. 
Industry straggles to compete 
within the angle market 
Turnout fell to 35.7 per cent 
compared with 5L3 per cent in 
1989, the lowest for any elec- 
tion in Portugal since democ- 
racy was restored in 1975. 
Abstention was aggravated by 
the allure of sunny beaches 
during a bank holiday week- 
end. But it also reflected both 
the failure of the main parties 
to inspire widespread support 
and the European Parliament’s 
lack of significance to Portu- 
guese voters. 


MEPs 


juto. 


Helena Vaz da Sflva. Cartas da 
Costa Nwes, Jwga Farrar <te 
Meretonga. 

■ Centre Social 
Democrat-Popular Party 

Manuel Mortaro, Ra# Rosado 
Fernandes, Jos6 Gbao Pert&n 

■ Unitary Democratic CoaRtion 
Luis S4, Joaqufrn Mrancfa, SAgfc 
rabeire 


Dissatisfied voters send a clear signal 


By Karin Hope in Athens 

So confident was Mr Andreas 
Papandreou, the elderly Greek 
prime minister, of victory for 
his PanheHenic Socialist Move- 
ment that he went to bed with- 
out bothering to watch the 
results of Sunday’s European 
Parliament elections on televi- 
sion. 

It was left to his spokesman 
to explain in the early hours 
why support for Pasok had 
dropped by 10 percentage 
points since its triump h ant 
return to power in last Octo- 
ber’s general election. 

While the Socialists easily 
headed the poll, capturing 37.6 
per cent to 32.7 per cent for the 
conservative New Democracy, 
Greek, voters had clearly regis- 
tered dissatisfaction with both 
big parties. 

Pasok won 10 of Greece’s 25 
seats in the European parlia- 
ment, against eight for New 
Democracy, three for the 
nationalist Political Spring 
party, and two each for the 
Greek Communist party and 
the Left Alliance. 

Analysts said the results 
reflected widespread disap- 



Andreas Papandreou after voting in Athens 



Results* (TUnout 71,9%; 1984 79£%) 

Party 

PartoweU 

%«ett Seals 

peep 

**• U8 *94 “80 

Pasak 

PS 

STM 36.0 10 9 

m 

ffP 

32.7 404 9 10 

taS 

Ul 

IZ5 I4S 4 4 

Hana 

EDA 

2a 1.4 D 1 

Oftan 

m 

47 - 2 - 


Sows*: Etvopean Portamnt 


-Ab U ev ta tio ns : Latt-SYN ami MCE; 
NDoNte Democracy; 

PM oh. P m h fB n l e Soctiflat 

Movement 

Pi rtame n tt r y group te mhteK m 
bottom tent page this section 

■ Pectoral w ater 

Pro p o rti on a l from national Hats 
Compulsory vottig: Yee 

pointmerrt with the govern- 
ment’s unwillingness during 
the past eight months to grant 
generous wage and pension 
increases and create public sec- 
tor jobs for Pasok supporters. 
While several thousand 
appointments have been made, 
the rising public sector deficit 


inhib its the Socialists from set- 
ting up dozens of new state 
enterprises as they did in the 
1980s. 

However, voters also sig- 
nalled their concern about 
Pasok’s future, following 
repeated hints thht Mr Papan- 
dreon, who is 75 and has a 
heart problem, may resign as 
Pasok’s leader and seek elec- 
tion next year for the ceremo- 


nial job of president. Without 
the charismatic but authoritar- 
ian Mr Papandreou in charge, 
Pasok’s rival factions could be 
plunged into a messy struggle 
for power. 

New Democracy is embroiled 
in such a battle, as Mr Mil- 
tiades Evert who took over as 
leader after last year’s election, 
tries to gain control. The par- 
ty’s poor showing on Sunday is 


already provoking fresh criti- 
cism of his failure to improve 
the conservatives’ image. 

The election results also 
underline the possibility of 
splinter groups breaking away 
from both parties, headed by 
prominent personalities unwill- 
ing to serve under an unpopu- 
lar leader. Mr Evert’s old-fash- 
ioned insistence on 
state-oriented economic poli- 
cies is trying the patience of 
reform-minded conservatives. 
Another hammering in local 
government elections later this 
year would speed their depar- 
ture to form a new party. 

The biggest gains on Sunday 
were made by Political Spring, 
the nationalist party led by Mr 
Antonis Samaras, a former for- 
eign minister who brought the 
conservative government down 
last year by persuading several 
ND deputies to defect With 8.7 
per cent of the vote, almost 
double its share in the general 
election. Political Spring's 
efforts to attract voters in their 
20s and 30s appear to have paid 
off. 

Yet the strength of the pro- 
test vote also propelled both 
the Greek communists, still 


unswervingly Stalinist, and the 
small Left Alliance party back 
into the European parliament 
with 65 and 6J2 per cent of the 
vote respectively. Record num- 
bers of votes also went to 
fringe parties with no hope of 
winning seats, among them 
environmental groups, right- 
wing extremists and the newly 
formed Leftwing Resistance to 
the European Union. 


MEPs 


■ Pasok 

OmHris Tsatsos, Chnstos Papoutsis, 
Paraskevos Avgarinos. Conslantlnos 
KMronomos, Yannis Roufcatis. Angela 
KoWtob. Stefas Panagopoulos, 
Gkxgos Katiforis, Nik os 
Papakyriazis, Irene LamtwaW 

■ New Democracy 
Efthymos Christodoulxj, Antonios 
TrakatoGos, Nana Moeskoun, Stefaos 
Argyros. Giorgios Dinutraecpou&s. 
Pavlos Sarto. Talus Lamtxtas, 
Giorgios Anastjsopoutos 

■ Political Spring 
Katerina OasAoiaAis, Nikitas 
Kaklamano, Dimitris Kurfculas 

■ Lett Affiance 
Alexandras AUvanos. MudMbS 
Popayumnakis 

■ Greek Communist Party (KKE) 
Vassife Eframides. Yarmis Thecrus 


DENMARK 

Bloody nose for Rasmussen’s SDP 


By HQary Barnes 
in Copenhagen 

Prime Minister Poul Nyrup 
Rasmussen’s Social Democratic 
party was dealt a bloody nose, 
winning only ISA per cent of 
the vote compared with 23.3 
per cent in 1969 and losing one 
of its four seats In Strasbourg. 

The SDP, whose supporters 
are not as pro-European as its 
leaders, lost heavily to the alli- 
ance of two anti-European 
movements, the People’s Move- 
ment Against the EEJ and the 
June Movement. The two 
groups scored a total of 25J> 
per cent compared with 18.9 
per cent won by the People's 
Movement in 1989 (the June 
Movement is a newcomer), but 
the two failed to win an extra 
seat and retain a total of four. 

The election was not a clean 
sweep for the anti-European 
cause, however. The two pro- 
European opposition parties, 



■ SDP 

Kirsten Jensen, Freddy Bafc. NWs 
SndaJ, Ovb Madsen 

■ CUP 

Poul SchKttar, Marie Jepeen, 
Christian Rawing 

■ Vbtts 

Eva KJer Hansen, Bertel Hoarder, 
IMs Ankar Kofoed. 

Karin Rfe Jorgenson 

■ Radteal Liberals 
Lorn Dybkjaer 

■ Socfafei People's Party 
L2y GyfctenkSda 

■ Juw Movement 
Jens-Peter Benda, UEa Sandbsek 

■ People's Movement Agrinst the 
EU 

Ote Krwtip 

Based on prtBmtnay rosutts issued 
by the European Pariia/nonL FuB 
results wtt not bo known for several 
weeks. 

the Liberals and Conserva- 
tives, each picked up an extra 
seat, “an excellent result," 
pni gTnftntori Mr Dffe EEemann- 
.lensen, the liberal leader and 
former foreign minister. The 


Liberals went ahead to 18.9 
from 16.6 per cent to win four 
seats. 

The Conservatives, whose 
lead candidate was the popular 
former prime minister. Mr Poul 
Schlflter, won 17.7 per cent, 
against 133 per cent last time, 
and picked up three seats. But 
the strongly pro-Union Centre 
Democratic party, a member of 
the present four-party centre- 
left coalition government, lost 
both its seats and saw its share 
of the vote sink to 05 per cent 
from 7 JB per emit in 1989. 

The Radical Liberals (also a 
member of the coalition) 
gained a seat for the first time 
by fielding a popular woman 
candidate, former environment 
minister Ms Lone Dybkjaer, 
who is the present live-in com- 
panion of the prime minister. 
The Eurosceptical Social Peo- 
ple's party held on to its single 
seat although dropping to 8.6 
from 91 per cent 



Ran As (Turnout 52.5%; 1989, 46J?%) 


Pam- Pttttmnt KMs Sort* 
gn* 


Yttttre 

LOR 

149 

146 

4 

3 

CPP 

ffP 

17.7 

113 

3 

2 

SDP 

PS 

148 

213 

3 

4 

* 

RBW 

102 

- 

2 

3 

ra 

RSW 

143 

- 

2 

1 

SPP 

Gram 

48 

9.1 

1 

1 

RV 

U» 

45 

■ 

1 

• 

CO 

ffP 

09 

70 

D 

2 


Sara: MMrty of feitMfer 
-Abt raW fa po WfaCante D mocrts; 
CPP=C on wrvHi> Pwpt>** party: 
FB^aopie's Movement AgakM the EH 
JBeJ art b — eg rt— k ffifrJMdfcW 
Venttg; SOP=SocW DmoMM; 
SPP-SecMfc* r ea p W k party 
Poiem miMy group abbravUBkw*: got 
bottom from peg« this taction 
■ Dee to r i mien i ; 

Proportional from nation^ Bars 
Computooty voting; No 


Kkj 

EUROPE 

Europe's leading 
public affairs 
company. 

Ion Greer Associates i Europe t Limited 

Avenur dc Tervmrtcn. 55 t u C-iili-rim; Pl.uc 
HW0 Brussels Liwvlnu 
Belgium SWlEl*l?\ 

Tel: 1 522 j 735 5S70 Tv-l >U' 1 1 1 ».« 1 5t»5 1 
Fax; 1312 1 732 GiM5 F.vvrl* T l«s:i U'h» 





12 


FINANCIAL TIMES TUESDAY JUNHHJggj 


European Elections 


Vernon Bogdanor questions the legitimacy of a system that fails to mobilise popular consent 


Long road to true democracy 


The The 1994 
elections to the 
K0B k European par- 

>f§ Jm liament raise 

Vf two questions. 

The first is 
whether direct 
Mi'jH elections are 
■RnBi able to confer 
democratic legitimacy to the 
European enterprise. The sec- 
ond is whether that enterprise 
has any chance of succeeding 
without a radical change of 
direction. 

The most striking feature of 
the elections is the small per- 
centage of Europeans who can 
be bothered to vote. In 1979, 63 
per cent of electors in the Com- 
munity voted in the first elec- 
tions for the European parlia- 
ment. This disappointingly low 
turnout was ascribed to the 
parliament's lack of powers, an 
excuse no longer available. 

Yet, in 1994, for the third 
successive election, overall 
turnout fell - to 56.5 per cent 
compared with 5&5 per cent in 
1989 and 61 per cent in 1384. 
Given that voting in three 
countries - Belgium, Greece 
and Luxembourg - is compul- 
sory, it is probable that only a 
minority of electors were vol- 
untarily prepared to offer even 


that minimal endorsement of 
European Onion symbolised by 
the act of voting. 

The parliament, it is now 
clear, is unable to create a 
European consciousness 
among the electors. This faff- 
ing is not contingent, but 
inherent in the operation of 
European institutions. 

Domestic elections succeed 
in conferring legitimacy 
because they fulfil three func- 

The elections are 
undermined by 
the voting system 
in the UK 


tions. They offer the voter a 
choice of government, a choice 
of who should lead that gov- 
ernment, and the choice of a 
set of policies. European parlia- 
ment elections fulfil none of 
these functions. The govern- 
ment of the Union is shared 
between the Council of Minis- 
ters and the C ommissio n but 
the composition of neither of 
these bodies is affected by 
European elections. 

The leadership of the Union, 


in the guise of the person who 
win succeed Mr Jacques Delors 
as president of the Commis- 
sion, is decided, not by the vot- 
ers, but by backstairs dealing 
between the governments of 
the member-states. The future 
policies of the Union are 
decided through bargaining by 
the political leaders of the core 
member states - France, Ger- 
many, mid Spain. 

Rather than conferring dem- 
ocratic legitimacy to the Euro- 
pean project, European parlia- 
ment voting has thus become a 
series of separate national elec- 
tions, or rather perhaps 
national opinion polls, with the 
ftmr tinn <jf charting the chang- 
ing fortunes of the main 
domestic political forces. Even 
here, the elections are deeply 
□awed owing to Britain’s stub- 
born insistence on nmnnaftifwp 
its first-past-the-post system. 

Can the European Parlia- 
ment really claim a mandate to 
represent the opinion of its 
269m voters, when it is sup- 
ported by just over half of 
these voters, and when its rep- 
resentation is so distorted? 

If there has been one notice- 
able transnational trend in 
these elections, it has been the 
success of the right in three of 


the five large member-states of 
the Union - Germany, Italy 
and Spain. Yet, because of the 
exaggerative effects of the Brit- 
ish electoral system, the UK 
Labour party will be by far the 
largest party in the parliament, 
and the Socialists the largest of 
the party groups. 

There is a striking contrast 
between the progressive trans- 
fer of competen c es to the Euro- 
pean Par liament and the fade 
of popular involvement of the 
European electorate. The fail- 
ure to mobilise popular con- 
sent is the main weakness of 
the European project 
If the Union continues to 
transfer further competences 
to a European level and 
extends majority voting in the 
Council of Ministers, it will 
become farther alienated from 
those it claims to represent 
In reality, the development 
of the EU has revealed a more 
fundamental chasm in Euro- 
pean politics than that 
between right and left, more 
profound even than that 
between. Europhiles and Euros- 
ceptics. It has opened up the 
most dangerous of political 
divides, that between the peo- 
ple and the political class. In 
Britain, France, Germany and 


Italy, all the main political par- 
ties have favoured the Euro- 
pean enterprise although huge 
minorities of the population 
are against it. With no legiti- 
mate outlet for anti-European- 
ism, voters mil turn to less 
respectable alternatives, the 
National Front in France in 
1984 and 1989, Germany’s 
Republicans in 1989. and, in 
Italy. Mr Silvio Berlusconi and 
his neo-fascist allies in 1994. 


Only a small 
percentage of 
Europeans 
bothered to vote 


The European Parliament, 
intended as a counterweight to 
the bureaucratic and techno- 
cratic elements of the Union, 
has become, as perceived by its 
electors, a part of that very 
technostructure. Any reform of 
the EU’s institutions must 
begin by giving the electorate 
of Europe the power to choose 
its go v ernment. One way to 
achieve this is by direct elec- 
tion of Wra Commission. But 
that would require a treaty 


amendment In the current cli- 
mate, this almost certainly 
would not be passed. 

Under Article 138 of the 
Treaty of Borne, elections to 
the pa rliament are to be con- 
ducted by a uniform electoral 
procedure in all of the states. If 
Britain could be persuaded to 
agree to this provision, it 
would be possible to produce 
common transnational lists for 
the European elections. 

It could then be accepted 
♦hat the winning lists should 
form the Commission, which 
would be composed of mem- 
bers of one political colour, 
and could thus could offer the 
political leadership that 
Europe so badly needs. 

The European elections of 
1994 mark the end of the road 
for a particular conception of 
Europe, one symbolised by the 
benign despotism of Delors. 

The elections none the less 
constitute both a challenge and 
an opportunity for European 
leaders. The opportunity is to 
help create a European con- 
sciousness, without which the 
construction of Europe cannot 
even be contemplated, let 
alone completed. 

The author is Reader in Gov- 
ernment. Oxford University. 


Test must be loyalty to shared 
ideals, writes Pertti Salolainen 

Making the 
Union truly 
pan-European 


_ In 1923. the 

Bohemian 
rJPPPfc Count Richard 
||glfcgET-l Coudenhove- 
MBctW Kalergi wrote 
|lragKj pj in his book Pan 

rationalise the 

European econ- 
omy we have to create an 
internal European market 
Only that way can Europe 
achieve high wages, low prices 
and great turnover." Already 
during those chaotic days after 
the Great War. economic con- 
vergence was seen by many as 
the only means to ensure last- 
ing peace and prosperity. 

Today a single market exists 
for the European Union. Addi- 
tionally, we have created the 
European Economic Area, by 
which the single market is 
extended to the wealthier 
European non-EU countries. 
The EU has negotiated 
co-operation agreements with 
central and eastern Europe. 

However, the real question is 
whether the European Union 
will some day become pan-Eu- 
ropean. I believe that the real 
Europeanism of the 21st cen- 
tury must embrace and e xte nd 
the values of liberalism, plural- 
ism, tolerance, and rationality 
throughout the continent 
A multi-track Europe is 
already more a reality than a 
threat. EU divergences are 
apparent It is difficult to see 
how all the present member 
states could satisfy the criteria 
for the adoption of a single cur- 
rency by January 1 1999. In the 
Visegrad countries, or the for- 
mer Soviet Union, the picture 
is still more fragmented. 


The EU should be genuinely 
open to all European nations 
that share the common Ideals 
of peace and prosperity. The 
question of when and how 
steps to enlarge the EU should 
be taken has to be solved case- 
by-case. The Union must func- 
tion efficiently and in a co-ordi- 
nated way. Our aim Is to pro- 
mote forward-looking 
co-operation. 

Fin land ’s m emb ership of the 

European Union is a matter of 
stability and independence. 
Stability, because Europe 
needs the kind of stability that 
only integrated cooperation 
can produce. Independence, 
because by joining the EU we 
can best influence our own 
destinies. 

For Europe, Finland's mem- 
bership will strengthen the 
EU’s role as a political and eco- 
nomic anchor. 

On October 16, we will be 
holding a national referendum 
on EU membership. Under the 
Finnish constitution, such a 
referendum is only advisory, 
but the Finnish government 
will consider the outcome 
politically binding. 

Sceptics must realise that in 
an interdependent world no 
nation can survive in isolation. 
That was also the lesson of the 
Austrian referendum result on 
Sunday, which I warmly 
welcome. 

To preserve sovereignty, Fin- 
land needs a secure, equitable 
place in the decision-making 
process that will decide its 
future. 

The author is Finland's for- 
eign trade minister and negotia- 
tor on EU affairs. 



German presidency has new dimension 

Overcoming structural weakness and unemployment heads the agenda, writes Tyll Necker 


t The German 
government assumes 
the six-monthly presi- 
dency of the European 
Union next month - 
at the same time as 
the fourth directly 
elected European Par- 
liament takes up its 

duties. 

In line with the Maastricht treaty, 
the decision-making and supervisory 
powers of the newly elected parlia- 
ment have been enlarged. 

EU policies have taken on a signifi- 
cance for Germany that in many 
spheres is equivalent to that of 
national policies. More than 60 per 
cent of the legislation affecting busi- 
ness and consumer affairs is now 
determined at a European level and 
is thus dependent on the European 
Parliament’s decisions. To give the 
parliament a broad democratic basis, 
German industry made dear during 
the campaign that it favoured a high 
turnout in the elections on Sunday. 

The German presidency and the 
new parliament will be starting their 
work at a time of great political and 
economic challenge. 

After the large-scale upheavals 
which have taken place in Europe 
during the last few years, including 
the reunification of Germany, the 
task now is to press forward along the 
path of European integration. 


The main item on the a gwnffa is to 
strengthen Europe's position as a cen- 
tre for economic activity by overcom- 
ing points of structural weakness and 
reducing unemployment. 

Last December, the European Coun- 
cil drew up an action plan based on 
the Commission’s white paper on 
growth, competitiveness, and employ- 
ment That provides the foundations 
for a successful common strategy the 
medium term, which is intended to 
reinforce companies’ competitiveness 
and increase employment 

Broad-based investment and a clear 
reduction in unemployment can be 
attained only if companies are able to 
stand up to increasingly intense inter- 
national competition. 

To achieve that aim requires: a 
reduction in the burdens of taxes and 
other levies on European companies, 
which are very high by international 
standards; more flexibility in labour 
markets; deregulation and privatisa- 
tion of many important areas, such as 
telecommunications, energy, and 
transport; improvements in infra- 
structure, malting use of private as 
well as public sector capital; and pro- 
motion of innovation by means of 
well-coordinated and application-ori- 
entated research and development 
policies. 

From the point of view of German 
industry, the German presidency of 
the EU should aim to press forward 


speedily and consistently with the 
aim of completing the single market 
programme. 

Of the measures putting the pro- 
gramme in place, 95 per cent have 
now been agreed. However, across the 
EU, only 87 per cent of the measures 
have been placed on the statute book, - 
so the single market cannot yet said 
to be fully operational. 

Moreover, only 50 per cent of the 
measures have come into effect in all 
12 member states. Partnership and 


Common policies are 
required to control 
and to prevent waste 
disposal, assist 
recycling and the 
re-use of materials 


cooperation are necessary to ensure 
that single market rules are applied 
in an efficient and even-handed man- 
ner. That is the only way to overcome 
competitive distortions. 

Consolidating the single market 
also requires harmonisation of tax 
policies and reduction of fiscal hin- 
drances. Action is caned for to end 
burdens on industry stemming from 
provisional VAT rules. This would 


require a decision on a new system 
for country -cf-origin VAT collection. 

Fiscal barriers for cross-border capi- 
tal transactions and corporate 
restructuring must also be removed. 
A wen-functioning joint export con- 
trol regime is also needed, encompass- 
ing so-called “dual use" goods le. 
those capable of both military and 
civilian applications. 

Another priority is cross-border 
environmental protection. Common 
policies are required to control and to 
prevent environmental problems, par- 
ticularly with regard to waste dis- 
posal but also with recycling and with 
the re-use of materials. 

There is further need for action in 
the European Union’s external rela- 
tions, of utmost importance for assur- 
ing c om pet i tiveness. There may well 
be Important landmarks here in the 
application of the Gatt Uruguay 
Round agreement, as well as in the 
establishment of the World Trade 
Organisation. The EU needs to 
assume a leadership role in this 
respect alongside the US. 

The Union’s trade policy must be 
strongly geared to the principles of 
multffateralism and openness towards 
the rest of the world. The leading 
industrialised countries* trade policy 
will be credible only if they refuse to 
countenance one-sided, discrimina- 
tory measures or threats of sanctions. 

A decisive point for Europe’s exter- 


nal relations will be the extension of 
trade and Industrial co-operation with 
the reform-minded states of central 
and eastern Europe. The German EU 
presidency should devote special 
energy to supporting these countries’ 
economic reform efforts. 

In line with the principle of 
“self-help", trade and economic 
cooperation can provide the right 
conditions to allow these countries 
themselves to generate the revenues 
needed to finance these reforms. 

Another central issue for the Ger- 
man presidency will be preparing the 
conference to review the Maastricht 
treaty in 1998. Here I anticipate 
improvements on the details of the 
treaty as well as decisive steps 
towards developing European integra- 
tion. In particular, we must meet the 
challenges associated with enlarge- 
ment towards some of the Rfta states 
and further economic and political 
rapprochement with central and east- 
ern Europe. 

It is important to extend the Euro- 
pean parliament’s co-decision rights. 
Such reinforcement forms an essen- 
tial part of efforts to strengthen the 
EU’s democratic structures and to 
increase further the parliament’s 
involvement in the European integra- 
tion process. 

The author is president of the Bun- 
desverband der deutseken Industrie 
(Federation of German Industries)- 


Parliament 

must play to 

its strengths 

Pauline Green asks if MEPs will 
make the most of their powers 


f The votes have 
been counted. 
The new parlia- 
ment starts 
work on July 
19. Can it make 
the most of its 
' new powers? 
Or will it sink 
into oblivion for the next five 
years? 

The parliament has 
strengths and weaknesses, 
some not of its own making. It 
must play to its strengths and 
try to eliminate those handi- 
caps that can be eliminated. 

Some weaknesses are inher- 
ent. The need to work in nine 
(soon 12} languages means that 
debates will never have the cut 
and thrust of the House of 
Commons. 

Where the parliament does 
well, however, is in influencing 
legislation and carrying out 
the nitty-gritty of parliamen- 
tary scrutiny, shaping the bud- 
get and monitoring and ques- 
tioning civil servants’ actions. 

Every year the parliament 
adopts thousands of amend- 
ments to draft legislation, 
reshaping the laws that affect 
us in important areas such as 
consumer protection, environ- 
mental standards, social legis- 
lation, equal opportunities and 
banking. Through its budget- 
ary powers it redirects spend- 
ing to priority areas. 

Even before Maastricht 
reinforced its powers, most 
parliamentary amendments 
ended up on the statute book 
in directives and regulations 
adopted by the Council of Min- 
isters. Under Maastricht, 
important areas of legislation 
fall under the “co-decision" 
procedure and are adopted 
jointly by parliament and the 
Council. Parliament’s Influence 
on legislation can only grow. 

In particular, the right to say 
“no” - to veto draft legislation, 
to blow the whistle on behalf 
of our constituents - will be 
cradai for the parliament's 
public perception. 

Some national parliaments 
act virtually as a rubber stamp 
in adopting legislation pro- 
posed by governments. In this 
respect, the European parlia- 
ment does better than many 
national parliaments. 

National governments want 
parliament to continue with 
the ludicrous system of spread- 


ing its activities over three 
countries. Most parliamentary = 
work is earned out in Brussab, 
but once a month the whole 
show moves to Strasbourg for 
plenary sittings, and « large 
proportion of the secretarial Is 
based in Luxembourg. 

Brussels should be the tingl e 
site of parliament's activities, 
close to the other institutions 
it bos to scrutinise, and In the 
same town as the European 
press corps, representatives of 
interest groups and member 
states’ embassies. 

Another problem is that (hi 
treaties negotiated ami ratified 
by national government* now 
include for too many Comdex 
procedures for involving par- 
liament in European legisla- 
tion- The 1996 conference 
should seek to simplify and 
standardise these rules by 
applying a streamlined co-deci- 
sion procedure to all ami 
where Council adopts legisla- 
tion by a qualified majority. 

The press, too, havtng fre- 
quently pointed to parlia- 
ment's increased importance, 
must follow this up by 
increased coverage of parlia- 
mentary work. 

The parliament should also 
put its own house in order. A 
good start was made last year 
with u complete overhaul of 
the Rules of Procedure, allow- 
ing parliament to concentrate 
its time on more important 
matters where it has power, to 
limit possibilities for filibuster- 
ing by small groups, and to 
improve management. 

I n the new parliament, the 
centre-right will be for 
more divided and frag- 
mented, with an extreme right 
contingent introducing insta- 
bility and even conflict. Han- 
dling this will present a chal- 
lenge- Sven more than in the 
past, the Socialist group will 
have to lead the parliament, 
despite the absence of an over- 
all majority for any group. 

All in all, the new parlia- 
ment has a good chance of 
using its new powers effec- 
tively. The big question is how 
national governments will han- 
dle the 1996 constitutional revi- 
sion. We look forward to seeing 
how they face up to their 
responsibilities. 

The author is leader of the 
group of UK’s Labour MEPs. 


Will the single currency deadline 
be met? asks Stefan Collignon 

Euro-MPs face 
mission to 
espouse Emu 


t The advantages 
of a single 
European cur- 
rency for low- 
ering transac- 
tion costs, 
supporting 
competition, 
and reducing 
uncertainties are well known. 
The new members of the Euro- 
pean pari lament must explain 
these advantages to their elec- 
torates and must reassure 
them of the soundness of the 
planned transition to economic 
and monetary union (Emu). 

By June 1999, when the new 
MEPs seek re-election, a Euro- 
pean central bank will proba- 
bly have started to issue Ecus 
for the first group of countries 
to embark on monetary union. 

During the last two years, 
the European Monetary Sys- 
tem (EMS) has seen drama. 
But the rationale for Emu is 
unchanged. None of the 
remaining ERM participants 
has used the wider h gmfc t 0 
cut interest rates excessively 
or to engineer competitive 
devaluations. 

After last summer’s crisis, 
many officials saw countries' 
willingness to continue stabili- 
ty-oriented policies as a test of 
the political and economic phi- 
losophy behind Emu. The core 
countries have passed that test 
with flying colours. Will they 
be able to transfer to a single 
currency as early as 1997? 

A majority of countries (Bel- 
gium, Denmark, France. Ger- 
many, Ireland, Luxembourg 
the Netherlands) already fulfils 
the purely financial criteria set 
by the treaty. They have low 
inflation, long-term interest 
rate convergence and rela- 
tively stable exchange rates. 

However, greater fiscal 
efforts are necessary to bring 
deficits Into tteT per cSt 
range set down by the treaty. 


Lower debt/GDP ratios ar 
necessary. More time m 
needed to achieve convert 

That does not jeopardh 
target of a single currenc 
century. 

Central bank co-opei 
must also improve lr 
approach to the final sti 
Emu. The European a 
bank will be responsibl 
conduct of monetary 1 
from the first day of 
three. That implies It will 
tO Supply the hunlHwg 3 
with Ecu liquidity thioug 
existing money markets. ! 
do so efficiently only if 
markets are fully Integ 
beforehand. 

That in turn require: 
convergence not onl; 
long-term Interest rates 
stipulated by Maastricht 
also of short-tenn rates, 
way to achieve such « 
gence is to define con 
money supply targets to 
countries of the stability 
and then to stop steri] 
capita] flows between the 

The history of the EMS 
cates that during the 1980: 
cessful disinflation was l! 
to some kind of income 1 
m many countries. 

The European Parlia: 
could help reduce unem 
ment and pave the way foi 
nomic convergence by s 
rating a debate about the 
to link pay increases to pr 
tivjty growth. 

The European Partial 
should monitor the renun 
am obstacles. MEPs coulc 
ate an independent pan 
ec bnomists and “wise me 
jjsess progress. Above 
MEPs can be useful in ere 
arose 

ft"*** ^biiity require 
Emu to be successful. 

i2L a * tha r ^ directo 
" the Association 
Uw Monetary Union ofEu 



FINANCIAL TIMES TUESDAY JUNE 


14 1994 


13 


NEWS: UK 


Labour leadership contenders lay out their stalls 

The three main candidates to succeed John Smith chose a union annual 
congress to consolidate their campaigns, writes David Goodhart 


Mr TOny Blair’s apparently 
unstoppable advance on the 
leadership of the opposition 
Labour party remained 
by a three-sided 
debate at the annual congress 
of GMB general union last 
night 

Mr John Prescott, his main 
opponent, who appeals mostly 
to Labour’s core traditional 
voters, was on home ground 
and provided a punchy and 
emotional contribution stress- 
ing his trade union past and 
his socialist values. 

But his speech was also repe- 
titious and poorly organised 
and seemed to disappoint 
of his supporters. 


The GMB’s US-style primary 
attracted surprisingly little 
interest among the 700 dele- 
gates. About half of them left 
the conference when no rmal 
business ended in the early 
evening, and only a few then 
trickled back. 

Earlier, the third candidate, 
Mrs Margaret Beckett, who 
took the formal slot reserved 
for the Labour leader, gave a 
lacklustre performance. 

Like Mr Prescott she stressed 
the importance of the union 


Labour party links, of full 
employment, and of 
government support for indus- 
try. 

Mr Blair also did little to 
rouse delegates with his 
address stressing public- 
private partnership and 
Labour's opportunity to 
become the party that is 
trusted on tax and economic 

managpmgnt 

He talked also about skilled 
development and lifelong 
learning and most delegates 


thought that he had won nar- 
rowly on points. 

The GMB is a centre-right 
but traditionalist onion with a 
leader - in Mr John Edmonds 
- who has fatten out with the 
Labour modernisers. 

Neither the leadership nor 
the activists are enthusiastic 
about Mr Blair, but up to one 
third of the 700 delegates 
would probably vote for 

him. 

The biggest group of dele- 
gates seems set to vote for Mr 


John Prescott. Quite a large 
minority, and most of the 
women delegates, are likely to 
back Mrs Beckett 

But private polls of the 
union’s ordinary members 
show almost 50 per cent back- 
ing Mr Blair, about 30 per cent 
for Mr Prescott, and the rest 
split between Mis Beckett and 
others. 

That presents the union lead- 
ership with a problem. They 
cannot endorse Mr Blair 
because of his overt coolness 


towards unions - but endors- 
ing anyone else may make 
them appear out of touch. 

"Blair doesn't stand for any- 
thing. we don’t want to 
win at any price,” said one 
activist 

But support for Mr Blair is 
not only found among the ordi- 
nary members. 

A recent GMB ftilktiine offi- 
cials advised Mr Edmonds not 
to endorse any of the candi- 
dates. He rejected that on the 
grounds that if the newspapers 


can endorse candidates so can 
the GMB. But when the 
full-time officials did indicate 
their preferences they were 
equally split between Mr Blair 
and Mr Prescott. 

According to a poll for Sky 
News, the satellite TV station. 
Mr Blair appears already to 
have secured the support of 
well over half of Labour's 26S 
MPs for his bid to succeed 
John Smith as Labour 
leader. 

The poll which contacted 197 
Labour MPs between June 11 
and 13 put support for Mr Blair 
at 140. Mr Prescott was backed 
by 19 MPs and Mrs Beckett by 
16. 


JOHN PRESCOTT 

Pledge to 
put jobs 
on agenda 

Mr John Prescott, who won the toss 
of the coin and spoke first, revelled 
in his traditionalist tag as guardian 
of the Labour party's socialist roots. 
“Tm proud of my socialist values - 
which are as relevant in the 1990s as 
in the 1940s - and Tm proud of my 
trade union background,” he told 
delegates at Blackpool 

But he also stressed that he was a 
m an for policy detail, rather than 
juts for rhetoric on the big occasion. 

He told delegates that on unem- 
ployment he would accuse the Con- 
servatives of creating mass unem- 
ployment as a deliberate act of 
policy. 

*T11 put jobs and social justice at 
the top of the agenda. I have a 
hatred of mass unemployment that 
came from my experience as a sea- 
man.” he said. 

He said that the two wings of the 
Labour movement must continue to 
work in close co-operation and place 
particular stress on the importance 
of implementing a minimum wage. 
"We cannot compete by becoming a 
low wage skivvy economy,” he said. 
He said that full employment was 
still feasible but that it required 



detailed plans to achieve. Otherwise 
it would lack credibility. 

Answering questions Mr Prescott 
refused to be drawn on the precise 
level at which a minimum wage 
should be pegged. And he went on to 
reiterate his strong support for the 
principle and said that he hhnspif 
had had to live on a minininm wage 
as a hotel worker. 


MARGARET BECKETT 

Links with 

unions 

emphasised 

The speech from Mrs Margaret 
Beckett, Labour’s acting leader, was 
the longest and dullest of the three 
and had more to offer the party's 
traditionalists and its modernisers. 

Speaking before the other two can- 
didates in the slot that would have 
been filled by the late Mr John 
Smith, Mrs Beckett was received 
attentively but without great enthu- 
siasm. 

Her only direct appeal for votes 
took the form of a joke, with refer- 
ence, to former prime minister Mar , 
garet Thatcher: "I will make only 
one point in my own cause. After the 
next general election we could look 
forward to hearing militant Tories 
chanting 'Maggie Maggie Maggie out 
out out'”'. 

After a triumphant assessment of 
the European election results, "a 
turning point in British history”, 
Mrs Beckett talked about the need 
for a better balance between the 
individual and the community, but 
also had some meat for the 
left. 

She stressed the importance of the 
links between the unions and the 
Labour party. “Our relationship 



brings reality to what can otherwise 
become the unreal world of 
politics." 

She also taikpri about "supporting 
and backing” British industry and of 
government fairing a lead in indus- 
tries of the future. Modernisers 
would have been happier with her 
final comments on the need to mod- 
ernise the welfare state. 


TONY BLAIR 

Ambitious 
programme 
set out 

Mr Tony Blair received warm 
applause from the delegates though 
not a standing ovation as he called 
for Britain’s “national renewal” and 
the creation of a "strong, united 
society” based on "bonds of social 
solidarity”, writes Robert Taylor. 

"There are two messages from the 
European election results. Labour is 
once again a great national party 
capable of uniting this country,” he 
said. "People have had enough of 
this Tory government - its broken 
promises, its pledges that have not 
been kept. They believe the Tories 
are no longer fit to govern this coun- 
try. The people will never trust them 
on tax ever again.” 

Mr Blair sketched out a surpris- 
ingly detailed domestic programme 
for Labour. He pledged himself to 
the objective of re-establishing full 
employment. He also co mmi tted 
hrmaelf to a national minimum wage 
for "economic as well as moral 
grounds” to help low-paid workers. 

Mr Blair also made a number of 
specific commitments, including: 
signing up to the Social Chapter ctf 
the European Union as soon as 
Labour came to office; giving the 



same legal rights to part-time work- 
ers as to full-time workers; and giv- 
ing all workers the light to belong to 
a trade union with legal recognition 
for trade unio ns where substantial 
number of workers wanted it. 
Increasingly confident as his speech 
went on. Mr Blair also called for the 
creation of a comprehensive nursery 
education and child care system. 


Factory 

output 

prices 

subdued 

By Peter Norman, 

Economics Ecfitor 

Britain's producer price figures 
for May presented a mixed pic- 
ture of inflationary trends, 
with subdued price rises for 
finished goods somewhat over- 
shadowed by an upturn in the 
cost of fuel and raw materials. 

The Central Statistical Office 
reported that the price of goods 
from UK factories in May 
increased at the lowest annual 
rate since December 1986, sug- 
gesting no immediate danger 
of output prices boosting con- 
sumer price inflation. 

But prices for materials and 
fuel purchased by industry 
showed their fourth consecu- 
tive seasonally-adjusted, 
month-on-month increase, 
reflecting higher oil and com- 
modity prices. This brought to 
a halt a six-month period in 
which input prices had fallen 
compared with the same 
month a year before. 

The output price index, 
which is not seasonally 
adjusted, increased by Q.l per 
cent between April and May 
and was up 2 per cent in May 
compared with May last year. 

Excluding food, beverages, 
tobacco and petroleum, the 
output index - this time sea- 
sonally adjusted - was also up 
by 0.1 per cent ou the month 
and 2 per cent on the year. 

The CSO said this index, a 
good guide to underlying 
trends, showed an annualis ed 
increase of only LI per cent in 
the three months to the end of 
May compared with the previ- 
ous three months. By contrast, 
the seasonally-adjusted index 

for input prices increased by 
0.9 per cent in May compared 
with April. On an unadjusted 
basis the input price index rose 
0.7 per cent during the month 
and was unchanged compared 
with May last year. 


Britain in brief 



Rail strike 
threat from 
tonight 

Britain's railway signalmen 
are set to strike for 24 hours 
from midnight tonight in a 
move which threatens to 
paralyse the railway network. 

Talks between the RMT rail 
union and Railtrack. the 
company responsible for 
administering the network, 
broke up yesterday after half 
an hour when the nnion 
negotiators walked out after 
signalmen were offered a pay 
rise of 2jj per cent plus 
measures involving job 
evaluation, a new salary 
structure and introduction 
of flexible working. 

Mr Jimmy Knapp. RMT 
general secretary, said 
Railtrack’s behaviour bad 
been “absolutely 
reprehensible”. Union 
negotiators said Railtrack had 
withdrawn a 3.7 per cent pay 
offer it bad presented last 
week. Railtrack chairman, 

Mr Robert Horton, said he 
hoped "the RMT will recognise 
tha t the only realistic way 
forward is to sit down and 
start talking”. A strike would 
shut down the entire network, 
according to train operating 
companies set np after the 
break up of British RaiL 


Lucas plans 
wiring plant 

Automotive components 
manufacturer Lucas Industries 
has confirmed that it is setting 
up a plant making wiring 
harnesses at 

Houghton-ie-Spring, near 
Sunderland. Tyne and Wear. 

The project's first phase, 
worth around £10m. will create 
650 full time jobs. A proposed 
factory extension could 
increase this to 1,000 and raise 
total investment to between 
£15m and 20m. 

Lucas SEI Wiring Systems, 
a joint venture between the 
UK group and Sumitomo 
Electric Industries of Japan, 
has three manufacturing 
plants in South Wales and 
Staffordshire employing 2,900, 
supplying Rover, Honda and 
Toyota. Lucas said these sites 
were unaffected by the new 
investment, needed to meet 
increased demand from Rover. 

Although Lucas is one of 
the top five European suppliers 
to Nissan's Sunderland plant, 
it does not supply it with 
wiring harnesses. Nissan said 
it was discussing with Lucas 
the possibility of sourcing 
supplies from the new plant 


Oil optimism 
"justified 5 

Excitement surrounding 
recent oil finds in deep water 
west of the Shetland Islands 
is justified, but one of the 
companies involved says it 
is too early to determine 
whether full-scale 
development will be 


undertaken. Mr Heinz 
Rothermund, managing 
director of Shell UK 
Exploration and Production, 
a partner along with British 
Petroleum in the Foinaven 
and Scbieballion fields, 
said the companies 
plan to begin production 
as early as next year using 
a floating production system. 

In the opening address at 
the FT’S North Sea conference 
in London, Mr Rothermund 
said the area was "ftiD of 
promise” in spite of difficult 
operating conditions. 

Speakers at the conference 
agreed that the west of 
Shetiands was the only likely 
area of the UK Continental 
shelf where new big oil fields 
remain to be discovered. 

But they expressed optimism 
that production from mature 
North Sea fields could he 
maintained at relatively high 
levels through cost reduction, 
technical innovation and the 
grouting ability to connect 
smaller reserves to existing 

infra sl rnc tnr g. 


Some unions 
‘face ruin’ 

Some of Britain's trade 
unions will suffer financial 
collapse over the next two 
years, according to Mr John 
Edmonds, general secretary 
of the GMB general union. He 
forecast “a number of gaps 
that we and the other 
survivors must fiLL" It is 
believed that Mr Edmonds was 
thinking amo ng nthers of 
Ucatt, the construction union 
which has severe financial 
problems and is at present in 
merger talks. 


Home loan 
arrears fall 

The number of households 
in arrears with then- 
mortgages has fallen by 
almost a quarter in the past 
year, according to a recent 
survey. Households with 
mortgage arrears of two 
months or more Fell to 613,300 
in the year to March 31 1994 
from 800,150. One in 17 
householders is behind with 
their mortgage compared with 
one in 13 a year ago. 

Banks, insurers and 
building societies all have 
similar levels of arrears, at 
around 5 per cent of loans, 
but centralised lenders who 
entered the market in the 
1980s average more than 15 
per cent arrears levels. 

The annual survey is 
compiled by Ms Janet 
Ford of Loughborongh 
University. 


Preaching to 
the converted 

The operating and financial 
review, the new guidance on 
commentary in accounts 
designed to explain a 
company’s performance in 
words, is primarily 
understandable only by 
processional investors, a 
survey suggests. 

Analysts and investors 
believe non-professional 
readers of accounts will not 
bother to read nor be able to 
use the information in the 
review, according to the survey 
by the Institute of Chartered 
Accountants of Scotland. 



The £550m Toyota plant at Buruaston has produced fewer benefits than politicians and planners expected PMerotv w HuT*tmn 

Toyota impact less than hoped 


By Paul Cheeseright 

The economic effects of 
Toyota's new £550m car plant 
at Buruaston, Derbyshire, have 
so far been considerably less 
than politicians and planners 
expected when the project was 
first announced in 1989. 
Assumptions that Toyota's 
presence would induce other 
companies to establish plants 
in the Midlands have been 
unfounded. 

These assessments are con- 


tained in a report, yet to be 
published, commissioned by 
the departments of environ- 
ment and employment and by 
local authorities in the Mid- 
lands. "The indications in rela- 
tion to wider economic 
changes are that the actual 
impacts from Toyota have been 
relatively limited,” according 
to Ecotec, author of the report 
Production started at the 
Toyota plant in late 1992. 
About 2,600 jobs have been cre- 
ated. 1,800 at Burnaston and 


about 800 indirectly. But, said 
Mr David Slee, Staffordshire 
development director; “Extra 
employment has only partially 
compensated for major job 
losses at firms such as 
Rolls-Royce and Pirelli.” 

Ecotec attributed the limited 
inward investment to the lim- 
ited production volumes, as 
Toyota builds up production; 
the fact that that Toyota has 
not yet fully adopted a 
“just-in-time" system of 
delivery; and excess capacity 


among component suppliers. 

Inward investment projects 
have used 32 acres of land but 
Staffordshire and Derbyshire 
had made provision for Toyota- 
related developments to use 
642 acres. A similar miscalcula- 
tion took place with bousing. 
“It seems unlikely that the 
additional housing demand 
which has been generated 
amounts to more than 500 
units. That compares with allo- 
cations of 6,700 bouses." Ecotec 
said. 


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14 


TECHNOLOGY 


FINANCIAL TIMES TUESDAY JUNE 14 1494 


lan H amilt on Fazey describes why Royal Dutch/Shell 
is spending £70m on an R&D overhaul 

Keeping the engine 
running smoothly 


W hen Formula One racing 
cars were allowed to 
carry only a fixed 
amount of fuel to get them 
through a race, many used to 

n^ppmnh to dry *»nlfQ in ttip 

dosing stages. 

The answer to improving fuel 
economy was engine ofl. By 
making it thinner, viscosity was 
lower, so the engine turned 
slightly more freely and needed 
less fuel for the same speed. Hie 
consequence was about one lap’s 
extra travel par race - the 
difference between whining and 
losing. 

Carrying this principle to the 
ordinary car or track on the 
ordinary road is, however, more 
difficult than it appears. Road 
vehicles have to last years, not 
the two hoars of an FI race. 
Thinner oils that get even thinner 
as engine temperature rises are 
no aid to longevity; volatility 
increases, so oil and vapour seep 
up thi» cyimder into the 
combustion chamber where they 
bum, possibly leading to smoking, 
particle-laden exhaust tomes. 

The Anglo-Dutcb company 
Royal Duteh/SheD demonstrates 
the dangers mi a test-bed using 

a 10-titre Volvo truck diesel 
engine. To solve the problem, 
chemicals must be added to 
control the viscosity of the ofl 
and stabilise the range of its 
volatility - in effect to limit how 
thin it can get and bow much can 
evaporate above the piston head. 

Motorists may grumble that 
this sort of work wfll inevitably 
make engine mis more expensive, 
but Shell says it is not so much 
selling high-tech oil as commercial 
benefits worth much more. Like 
all leading oil companies it rlainwi 
to be responding to. trends in 
market demand. 

Car manufacturers and most 
drivers want improved fuel 
economy, reduced oil 
consumption, longer lasting oil 
at higher temperatures, fewer 
ofl changes, extended engine life, 
lower partide and noxious 
exhaust emissions, and more care 
for the environment. 

The benefits have beat creeping 
up on ns almost unnoticed, so 
that we already take many far 


granted. "When did you last have 
a car that needed a decoke?” asks 
Andrew Scott, head of engineering 
sendees at Shell's main UK 
research centre at T h o m to n , near 
Ellesmere Port in Cheshire. 

He and David Parkes, 

Thom ton's managing director, 
were elaborating on Shell's 
decision last month to spend £70m 
over seven years modernising 
and expanding the research 
centre, which Is Shell’s world 
headquarters for studying what 
happens to fuels and lubricants 
inside internal combustion 

The investment in Thornton 
will be one of the biggest single 
cash injections yet in UK-based 
research and development. Shell 
has 15 complexes of laboratories 
worldwide with Thornton one 
of the largest 

It currently employs 600 staff 
with a wide range of scientific 
skills. By the end of next year 


The Cheshire 
centre’s main work 
stems from its 
original wartime role 


it will take in 140 extra scientists 
from another research centre in 
Sittingfoourae, Kent, which Shell 
is dosing. 

Tim Cheshire centre’s main 
work stems from its original 
wartime role — it was founded 
in 1940 - developing fuels and 
lubricants for the Allie d air forces 
amt tanks fighting In North 
Africa. 

However, it has also become 
one of the world's foremost 
centres for combustion science 
and hazard analysis, where its 
work an gas explosions in 
confined spaces has made for safer 
design of offshore oil and gas 
p latf orm s since the Piper Alpha 
disaster In 1988. The 
attingboume scientists will add 
environmental and additives 
synthesis research to Thornton’s 
portfolio. 

The £70m will mainly be spent 
replacing a large number of old 


buildings with a smaller number 
of bigger laboratory wings, linked 
by communal support services. 
Additions wifi Include a new 
product devdopment and testing 
centre, as well as a visitor centre 
to improve public relations. 

Although this will confirm 
Thornton’s position as the group’s 
prime laboratory for research 
and development in oil products, 
there is a great deal of 
hard-beaded commercial nous 
behind th e decision, apart from 
merely adding to prestige. 

There was debate within Shell 
about whether to build on a 
greenfieldsite, rather than 
extending Thornton in the shadow 
of the giant Stanlow refinery. This 
would have cost twice as much, 
but would a more bucolic 
e n v ir onment lead to better work? 

Most of Thornton is surrounded 
by the green fields of Cheshire 
anyway - and, the argument 
went, it would do no harm to 
remind scientists of what they 
were there for by having Stanlow 
next door. 

What was crucial, senior 
maimgwnprrf argued, was to get 
away from a “rabbit hutch” image 
of having people scattered about 
in small, individual buildings. 
Thornton's buildings have been 

n nwilwr ail gM MBthDj — they 
have been constructed; the site 
is now Up to building mnnhw 
205 in 54 years as new ones hove 
replaced old ones. 

Parkes says the design of the 
new Thornton will bring people 
into closer contact in the 
communal services areas, 
promoting the exchange of ideas 
and creativity. He also thinks a 
more pleasant environment will 
help attra ct and retain staff! He 
believes all this should help 
teamwork and the pursuit of 
collective, commercial goals. “One 
of the problems of industrial R&D 
is to extend the customer-contract 
principle into the laboratory," 
says Parkes. 

Although “blue sky” research 
still accounts for 10 per cent of 
the budget, most of these 
customers have a market to sen 
to, such as millions of motorists 
- aid even the odd Formula One 
racing team. 



BruMUM* 

Craig Venter: *1 foal a major social and s ci entific responsBjffity to patanf 

Gene 

genie 

Deborah Shapley on one scientist’s 
potentially revolutionary effect on 
genetic-related business 


C raig Venter, one of Amer- 
ica’s leading gene 
researchers, does not 
appear stung by having 
been Ukencd to a monkey operating 
a machine or by the fact that the 
insult came from a pioneer of mod- 
on molecular biology. James Wat- 
son. 

More than two years after Watson 
criticised Venter's plans to find the 
chemical sequence of human 
genetic DNA, Venter is busy in his 
new, non profit-making Institute for 
Genomic Research in Gaithersburg, 
Maryland, a few miles from the gov- 
ernment's National Institutes of 
Health, where he pioneered the 
rapid iden tification of human gpnpg 
Venter, finding that he could not 
pY pand his gene s equenc ing ^ or k at 
NHL now works for private indus- 
try. He is confident that his team 
will identify virtually all human 
g e nes within a few years and is 
spoking pattmf ff to him this know- 
ledge into a revolutionary range of 
diagnostic tests and therapies. 

Since Venter raised the possibility 
of identifying and patenting large 
amounts of human genetic material 
in 1991, be has been criticised by 
other scientists. For many years, 
university and government 
researchers have made the DNA 
and protein sequences they discover 
publicly available in dat a bapfcs- 
But Venter’s innovations changed 
the terms of gene scienca In 1989 at 
NIH, Venter discovered how to use 
automated sequencing machines on 
a large scale to identify short 
strands of complementary DNA. or 
cDNA, which Is produced when 
genes hidden, in the chromosome 
become active. Venter harnessed 
powerful computers to ma t ch bis 
DNA strands with known ones and 
with DNA from other organisms. In 
this way he could work out the 
structure of the longer gene which 
his bit of cDNA came from. This 
made the hitherto painstaking work 
of gene hunting possible on a vast 
scale. 

At NIH. Venter applied his tech- 
nique to his own neurological 
research but his proposals to 
expand the work were rejected 
twice by Watson’s Human Genome 
Centre, also at NIH. 

Gene hunters usually proceed by 
identifying a function or disease, 
Itvating a likely chromosome and 
region where the gene might be 
found, and working along the chro- 
mosomal DNA, which is millions of 
base pairs (chemical units) long. 
While this identifies each pair of 
“beads” along the chromosomal 
“necklace" and extends knowledge 
of function, it is time-consuming 
and costly. Venters method short- 
cuts to the gene itself - not neces- 
sarily knowing anything about 
function or region - and accumu- 
lates masses of base pair data. 

Other scientists criticised Ven- 
ter's technique as “fast food" sci- 


ence. In December 1991 at a public 
meeting with members of Congress 
and the press Venter mentioned 
that NIH had filed Tor patents on 
315 of his sequences. Watson rose to 
say that automatic sequence 
machines “could be run by 
monkeys". 

If patents were sought on genes 
or parts of genes whose function 
was unknown, gene research would 
he tied in knots for years by patent 
litigation, he said. Watson was the 
chief of NUTs part of the quest to 
define the whole genome - all 
htoTWU genetic - on which 

the US government expects to 


spend $3bn (£2bn) by 2005. NIH 
director Bemadine Healy defended 
tiie patent filings. Watson resigned 
in April 1992 over tins and other 
issues. 

Venter also left NIH in 1992 when 
Wallace Steinberg, chief of Health- 
care Investment Corporation, 
offered him $70m over 10 years for a 
new rum-profit institute, if Venter 
would give worldwide exclusive 
rights to his research to a compan- 
ion profit-making biotech company. 
Venter's institute, known as TIGR. 
is funded by Steinberg’s money 
(raised to S85m) flowing through the 
new company. Human Genome Sd- 


The scale of T1GR and HGS’s 
growing genetic library is awesome. 
Venter's institute runs so automatic 
sequence machines and HGS has 
another 50. In TIGR's lab, analysers 
and sequencers ore arrayed in rows 

Hke an assembly line. Upstai r* aw 
the main computers: a Sun Sparta 
Center 2000 which keeps track of 
the DNA library, and a Kasper 3201 
superc om puter which searches Sot 

similar sequences in public data- 
bases and analyses the DNA. 

TIGR and HGS sequence 750J300 
nucleotides per day. The NIH 
Genome Project, in contrast, 
expects to complete 1.5m nucleo- 
tides of finished sequence in the 
whole oT 1995. , ■ 

Using the classic approach, scien- 
tists around the world took 19 years 
to identify 3.000 human genes. Since 
January 1993. the Venter-HGS oper- 
ation may have found as many as 

30.000 genes; for it has more than 

60.000 unique sequences, of which 
4,500 were previously known is pub* 
lie databanks. Since there are an 
estimated 100.000 genes. HGS chair- 
man William Haseltino says they 
will have a “virtually complete" sat 
of human genes in “one to two 
years". The fact that the Urges* 
gene library will be In private 
hands will be equally revolutionary^ 

The company has arranged for 
SmithKUne Beecham to have first 
call to develop the results, in 
y ftj-hang v* for access to S125UL SB*t 
support was the source of HGS*S 
1993 profit of $l.8m on 322m reve- 
nues. HGS and TIGR arc not the 
only private gene-hunting 
operations in the private sector but 
they are the largest. 

However, the US Patent Office 
rejected all the applications NIH 
filed on Venter's gene sequences. 
Rejection oT all 25 filings that HGS 
has made would spell disaster for 
the venture. But Haseltine says 
HGS has applied on more complete 
sequences and whole genes and in 
all cases their utility is claimed. 
“We believe we will meet all the 
criteria for patentability." he says. 

Meanwhile, he and Venter are 
arranging to make their research 
available publicly in ways that do 
not conflict with their ownership. 

Venter is pleased with the turn of 
events. “I feel a major social and 
scientific responsibility to patent," 
he says. “1 left NIH to change the 
starting point in science." 

The outcome of wbat Venter calls 
his "giant business and social 
experiment" will be anything but 
riniL Other biotech start-up compa- 
nies have seen their promise fade. 

Following HGS’s successful stock 
offering last December. Venter's 
shares in the company became 
worth about S12 ol But he could 
became even richer if the award of 
patents forces others to pay licence 
fees to bring about the expected 
gene-based revolution in medicine. 


For more than a century and a half, Patek Philippe has been known as 
the finest watch in the world. The reason is very simple. It is made 
differeudv. It is made using skills and techniques that others have lost 
or forgotten. It is made with attention to detail very few people would 
notice. It is made, we have to admit, with a total disregard for time. If 

a particular Patek Philippe 
movement requires four 
years of continuous work to 
bring to absolute perfection, 
we will take four years. The 
result will be a watch that 
is unlike any other. A watch 
that conveys quality from 
first glance and first touch. 
A watch with a distinction: 
generation after generation 
it has been worn, loved and 
collected by diose who are 
very difficult to please; 
those who will only accept 
the best. For the day that 
you take delivery of your 
Patek Philippe, you will have 
acquired the best. Your watch 
will be a masterpiece, quiedy 
reflecting your own values. 
A watch that was made to 
be treasured. 




PATEK PHILIPPE 

GENEVE 


I'AcliNtit ftm-fc PJiilij ijk* vlnm-nMiin: 1.1 \rw liuiul Suns-i. f jhkIuii- ,\*|hv>. Km Vw Howl Strrvl. hmiloii 
t iiirnirt] &e <i> 1 j«I. It! lb-mu Kliwi. I jhnIuii- Ccwjp Pru-nicll Ij«|. 1 KumI Slnvi. Hlftlltinf-ii|Kfii-Av<Hi 
I imiiiVii hi it lin-ln-j. IjiI. H7 Otiqa- Sini-J. Kilitiliiii^i-llriiii-li fy«L 1 King Kinrl. J«*rn*y. duniin-l Inland- 
jolm 1 1. 1 jinn I jfi. fin'll l'* Irrjifc*. RcIEm -YTrirAe Suit, Uif. 'XhW Cniflon Strrrl. 1-3 Wirkliw Sm-n. DuMiii 

Watches / Sw itzer land 



S-lninl UtniuHio* \niRnraifk- 







n%»t *•. 


... - 

,-W ” ’ -T 3 .v 

r ;j s :- J w •.« 



srlMr;' 
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If 



FINANCIAL TIMES TUESDAY JUNE 14 1994 


IS 


FINANCIAL TIMES SURVEY 


Nottinghamshire: regeneration of the coalfields 


Tuesday June 14 1994 





. . v .’ * (i • m • m * , • 2 " ' ■ .' 







DhwraUteaOon and new sources at funding mean the county's economy is begfnnfhg to bounce back - es have Nottingham Forest fbotbaf team 


T he Nottinghamshire 
economy faces chal- 
lenges in the 1990s. the 
scale of which was never 
dreamed of in the 1980s when 
the future of the coalfield 
seemed secure. These chal- 
lenges involve a shif t away 
from reliance on traditi onal 
industries to an economy 
based more widely on services 

and light manitfan trnHrig 

The background is the sud- 
den and drastic rundown of the 
coal industry as the power 
industry switches to the gener- 
ation of electricity by gas, 
instead of by coal, its tradi- 
tional fuei The Nottingham- 
shire pits have been closely 
tied to the power generation 
industry. 

From 1961 to 1992, the num- 
ber of pits had been declining, 
but slowly. The number fell 
from 39 to 13 while the number 
of pit jobs fell from 56,000. or 18 
per cent of county's male work- 
force to less than 12.000. This 
was part of a nationwide phe- 
nomenon. 

But in the mid-1980s, after 
the end of the mineworkers 
strike and following the enter - 
gence during the strike of the 
Union of Democratic Mine- 
workers, the future of the 
nzmp of the industry looked 
secure. 

Margaret Thatcher, then 


Base for expansion strengthens 


prime minister, seemed to owe 
the UDM, the members of 
which stayed at work during 
the strike, a political debt for 
breaking the power of the 
National Union of Minework- 
ers. 

Within the last 18 Tnnnfhs, 
however, since the announce- 
ment by Mw’iwd Hesettine, the 
trade and industry secretary in 
October 1592. erf a further run- 
down in the coal industry, a 
further nine Nottinghamshire 
pits have closed. The work- 
force has declined to 3^00 and 
is expected to be 2^00 by Sep- 
tember. 

The comity council believes 
at least £25Qm a year is being 
taken out of the economy, 
given the amount British Coal 
spent on wages and supplies. 

Such a sharp ehang ^ iii the 
fortunes of the local coal indus- 
try would have been diffic ult 
enough for the economy to 
absorb in the best of rircum- 
stances. 

But the rundown came when 
the economy was in recession. 
It coincided with the equally 
long-running problems of otter 
staple industries: textiles, sub- 
ject to intense overseas compe- 


Growing financial and services sectors and the availability of new 
funding are paving the way for investment, says Paul Cheeseright 


trfirm , and on gfnAormg where, 

also since the 1960s, there has 
been a jo employment 

as employers have adopted 
new manufacturing tech- 
niques. 

Overall, the effect has teen 
to reduce the strength of the 
comity economy, “hi the early 
1980s Notts bad the highest 
gross domestic product of the 
five Bast Midlands counties,” 
said Howard Jackson, director 
of the Nottinghamshire County 
Council's planning and eco- 
nomic development depart- 
ment 

“We’ve slumped next to bot- 
tom place over Derbyshire. 
We’ve gypn Leicestershire and 
Northamptonshire comes up 
the list becoming the two most 
prosperous counties.” 

In social fo rm a , Nottingham- 
shire's problem H as been exac- 
erbated by the physical con- 
centration of the miriag in the 
north and west erf the county, 
frequently in villages whose 
reason to exist has been thp 
pit where the winding gear 


looks down on the estates of 
redbrick homes. Only Cotgxave 
has been in the south of the 
county. 

But the north and west also 
have concentrations of engi- 
neering and textiles compa- 
nies. Unemployment has been 
consistently above the national 
average and in Mansfield, the 
largest town affected, it is 
more than 16 per cent 

T here are two immediate 
problems. The first is 
that of re-training redun- 
dant miners and fitting them 
back into the labour force of 
Nottinghamshire and the adja- 
cent counties. 

The second is helping exist- 
ing companies firstly to with- 
stand the fin «n Hal problems of 
emerg in g from recession and 
then to expand or strengthen 
pxiftUnfl - ope rations 
In the medium and longer 
t e rm, the growth of the econ- 
omy is dependent on diversifi- 
cation, especially in the north 
and west of the county. 


What form this might take is 
unclear. In the south, around 
Nottingham, the process is 
well-advanced with the growth, 
for example, of financial ser- 
vices and the development of 
the city as an office centre. 
Once considered as headquar- 
ters for English Heritage the 
city has been chosen for an 
inland Revenue development. 

To help, a battery of services 
and funds is firing maria avail- 
able, although Martin Gawith, 
deputy leader of the county 
council said that their work 
“certainly is not as co-ordi- 
nated as well as it ought to be 
or could be”. 

Assistance to the county is 
coming in at three levels. At 
the local level the county 
council, the training and enter- 
prise councils (Tecs), local 
enterprise agencies and British 
Coal Enterprise are playing a 
role not only in the provision 
cf training and job advice ser- 
vices but also in die provision 
of ven ture capital and loans to 
unmn companies. 


There has been some success 
in putting redundant miners 
back to work. British Coal 
Enterprise said it had been 
finding jobs at the rate of 
about 100 a week. But there is 
a difficulty. “Each agency 
knows what it deals with. We 
don't have the capacity 
between us to say 'OK. we’ve 
lost 9,000 jobs since October 
1992*- Where are all these peo- 
ple? What are they doing? Who 
are they? There’s a worry a lot 
of people are staying at home, 
who’ve got lost, who are very 
isolated. It's an unknown,” 
said Fat Richards, chief execu- 
tive of the North Nottingham- 
shire Training and Enterprise 
CounciL 

The second level of help 
comes at the national and 
regional level. The government 
has largely funded East Mid- 
lands Development, which will 
spearhead the regional drive 
for inward investment and 
whose developing activities are 
thus watched closely in Not- 
tinghamshire. 


The establishment this year 
of a new government office for 
the East Midlands, bringing 
together all departmental 
activities, should ease some co- 
ordination difficulties. It 
should prevent the sort of situ- 
ation where, for example, the 
department of transport prom- 
ises a level of funding for the 
Robin Hood railway line, to 
link Nottingham with Mans- 
field and Worksop, which the 
Treasury finds too high. 

A t a financial level, there 
should be funding for 
the county from the 
government’s single regenera- 
tion budget, depending on the 
skill of local private-public sec- 
tor partnerships in putting 
bids together. Amounts are 
unclear. 

However, the government’s 
designation of the north anri 
west as an assisted area opens 
up the way for subsidies to 
companies creating jobs. It also 
smooths the way for the 
authorities in seeking funds 
from the European Union for 
specific projects. 

This European funding is the 
third level of assistance and 


the Nottinghamshire Council 
has calculated that there could 
be £65m available over the 
next three years. 

Growth trends seem linked 
in the immediate future to 
industries which are already 
established. The arrival in 
Mansfield of Toray Textiles, 
the Japanese group, and the 
decision by Johnson Controls, 
the US company, to make car 
seat covers in the town offer 
an Immediate boost to the tex- 
tiles industry and have opened 
up the possibility of a new 
industrial concentration. 

“One company or group of 
companies can be the focal 
point around which others can 
circulate,” said John Finch, 
chief executive of East Mid- 
lands Enterprise. But such 
arrivals are rare and officials 
observe that the wain stimulus 
to counteracting the rundown 
of the coalfield will be a 
national economic recovery. 

Surveys have shown that in 
Nottinghamshire, as else- 
where, order books are fatten- 
ing and profitability has 
started to improve. The ground 
is ready for economic expan- 
sion. That, in its turn is the 
prerequisite for the sort of sus- 
tained corporate investment 
which would underpin the 
shift away from the historic 
dependence on the coalfield. 




IH THESE TIMES OP M^OHLfoWipC ■ 
RECESSION, ★HO'^AW THiE.yiiHC^R- T®' ! r m *\' 
INVEST M A NEW • PASMIENS^R .* - .! • . 
RAILWAY SYSTEM? ' ' • / • ' * >" ' V , r » ' ■ 


NOTTINGHAMSHIRE 


m 








WHO CAM : OFFER you A PROFITABLE 

PLACE TO DO BUSINESS. SOME OF THE 

>•' •:* • l * » , v ■ . • 

WORLD'S JLEADlNG COMPANiES, SUCH AS BOOTS, 

kodak. Wrangler, Players, Raleigh, G.P.T., 
Toray, NSK/MR sreeoo and Paul Smith. A 
WtKr cu^OttAUTV OF MFC? 


** * 


Who’s Supporting business? 


Nottinghamshire county council, we are in a 

UWWVE POSItlON TO ANSWER THE QUESTIONS IN ' 
tibtTINCHAilSHSRE FROM. A STRATEGIC APPROACH. 


WHO HAS INVESTED CIO MILLION 


IN A CAPITAL PROGRAMME OF 


REGENERATION FOR THE 


COALFIELD, AS PART OF 


THE NEW DEAL FOR 


NOTTINGHAMSHIRE. 



A 


/ 


A CENTRE FOR P 
TEXTILE AND FASHION 




r'-tf f k 


EXCELLENCE. 


' " : $BBr • • 




JK YOlfWjAUilNG BE^CNCRATKJN AHU NEW 
OPPORTUNITIES, YOU, SNOULfij BE TALKING TO. 
NOTTlKcyftAMSHlftE COUNTY COUNCIL. 


JWfcvVj ■ V 

■ >. it*- . 

K - 1 V 






for' more information contact Nottinghamshire County Council. 
issMioNie DciifELpi>iHeNT, Centenary House, 1 Wilpord lane, 

'Wesr Bridgford, Nottingham, NC2 7QZ. 

Telephone (0602) e a ss aa fax (ogo2> *55391 




WHO IS IN A POSITION TO LAUNCH NEW 


INITIATIVES AND NEW INNOVATIONS FOR THE 
FASHION AND TEXTILE INDUSTRY? 





16 


FINANCIAL TIMES TUESDAY JUNE 14 I** 


NOTTINGHAMSHIRE COALFIELDS REGENERATION 2 


Services sector growth is not fast enough, says Paul Cheeseright 

Process still painful 


The rundown of the county 
coalfield Is both part of a 
long-term trend and a manifes- 
tation of a realignment in the 

county economy. The trend 
away from traditional indus- 
tries and the growing em ph a s is 
on light manufacture and ser- 
vices is thus part of a wider 
national phenomenon, but no 
less painful for that. 

Seen in crude figures for 
employment covering the 
whole of the county, jobs lost 
in the collieries during the 
1980s were amply offset by the 
rise in the number of jobs 
available in the services sector. 
This has emerged in the 
growth of local financial, dis- 
tribution and catering services 
and the expansion of jobs in 
education, health and public 
administration. 

But the county figures tell 
only part of the story. In the 
first place, the growth in the 
financial services sector has 
been marked in the south of 
the county, around Notting- 
ham. With one exception. Cot- 
grave, the working mine s of 
the 1990s have been in the east 
and north of the county. There 


is thus some geographical mis- 
match between those needing 
jobs and those readily able to 
provide them. 

Analysis of the latest unem- 
ployment figures, as the 
national economy moves out of 
recession, shows falls in the 
areas around Nottingham and 
Newark, a si gnificant manufac- 
turing centre. But there have 
been rises in the areas where 
iraiimining fr ag been the domi- 

The coalfield’s rundown 

cannot be seen only In 
geographical terms 

nant economic influence. 

Second, the speed of closures 
since the government's first 
announcement of major 
changes at British Coal in 
October 1992 has upset any 
notions of a cosy tradeoff in 
jobs between one sector and 
another. 

Between 1961 and 1992, 44,000 

colliery jobs and 26 pits were 
lost, in the last 18 months, 
more than 8600 jobs and nin*» 
pits were lost 


As elsewhere in the UK, the 
role of the services sector has 
been growing in the county 
economy, it now accounts for 
62 per cent of jobs. But the 
growth has not been quick 
enough to absorb a sudden 
influx of people on to the 
labour market 

Third, the mftieq have been a 
source of well-paid employ- 
ment “All mine workers get- 
ting other Jobs can expect to 
have drop In pay - the vast 
majority at any rate,” said 
Wins or Lewis, Midlands 
regional manager of British 
Coal Enterprise. 

This has been borne oat by a 
survey of former SUverhiU 
miners, carried out by the 
Coalfield Communities Cam- 
paign. This showed a fall in 
average weekly pay from £243 
to £149. It showed that half of 
the new jobs won by former 
miners were in factories and 
warehouses. 

These three factors provide a 
pattern of a well-paid and con- 
centrated industry, frequently 
In relatively isolated pockets 
away from the growth areas of 
the county economy. 


Yet the rundown of the coal- 
field cannot be seen in narrow 
geographical terms. The spend- 
ing power of the individual 
miner may have been brought 
to bear in particular localities, 
but the spending power of Brit- 
ish Coal influenced much 
wider areas. 

The withdrawal of much of 
that spending has not yet been 
fully quantified. But in recart 
mo nths there has hopn a series 
of redundancy annmirirfimgnts 
at companies adjusting to the 
loss of British Coal demand. 
Herbert Cotterill, Dale Group, 
Lcmgwall Roof Support Repairs 
are cases in point 

Last November, Nottingham 
Treat University contacted 26 
companies supplying British 
Coal. It found that half had 
scaled down their investment 

intgnHnwg anH hart, on aver- 
age, reduced numbers an the 
payroll by IS per cent Compa- 
nies highly dependent on Brit- 
ish Coal were having difficul- 
ties in securing bank loans. 

But the uncertainty among 
British Coal suppliers is 
mat/4-iwi by uncertainty about 
the fate of its customers for the 


Cotftery emptoynwnt 



Oct 1992 

April 1904 

Sept 1904 

CotSeri** 

SCSgonw 

Estimates 

Estimates 

PamwMotfy closed 




Bevercotes 

800 

0 

0 

Cotgrav© 

e» 

0 

0 

Msnton 

737 

0 

0 

Merton 

1J019 

0 

0 

Ruflbrd 

806 

a 

0 

SflvwrhSI 

817 

0 

0 

Employment 

*408 

0 

0 

Job losses 


MM 

4,406 

Operational BC 



480 

BUsthorpe 

935 

540 

Harworth 

1J203 

835 

550 

Thoreoby 

1.212 

861 

600 

Wrtbsck 

1J067 

757 

750 

Empkiynwnt 

<M07 

«983 

2£M 

Job (oases 


1AM 

2,027 

Reopening an lease 



240 

Cfepstono (reopened) 

967 

200 

Catagrton (reopened) 

752 

0 

200 

Annesiey/Bentfnck 

879 

0 

0 

(mothbafled) 

Employment 

2£98 

200 

MO 

Job losses 


2398 

2,158 

Totals 



2jm 

Employment 

11,811 

3,183 

Job losses 


8JB28 

8,991 



8ww fkianfpmi*** Cwm» Owk* 


Employment 

Percentage ! Wt- >991 

60% — — 


40% 


20% 


- 20 % 


-40% 



C^grmnnufegfart y. 

Trya pon and common tertton. 


Meat goods, en gineering a vgggSL 
Enw y and water supp ly; 
-ao% — — 

SotwC^'MOfErwAViwF 


remaining collieries- The Not- 
tinghamshire pits have been 
reliant on coal-fired power sta- 
tions, of which there are five in 
the county alongside the River 
Trent 

The switch from coal-fired to 
gas-fired power stations makes 
the future of these power sta- 


tions, and possibly L500 jobs, 
unclear. Any closures would 
have an effect mi the future of 
the coal rail freight network. 

Such changes would speed 
the redaction of the county’s 
traditional industrial base. The 
problem arising from the coal- 
field closures is that, latterly, 


they have come too quickly for 
the economy easily to adjust to 
the extra twist of change. 

This is made more difficult 
to handle because of a longer 
term downturn in the number 
of jobs provided by the textile 
and engineering industries. 

Between 1981 and 1991, that 
is just after the recession had 
started to bite, employment in 
the metal goods, engineering 
and vehicles sector fell 27 per 
cent and in the "other manu- 
facturing” sector, which 
inr hides textiles, it fell by 21 
per cent. 

Further, the speed at which 
smalt companies were growing 
throughout the 1980s was 
slower than the national aver- 


age. The growth in the number 
of businesses registered fee 
VAT was 20.7 per cent for Nob 
tingbamshire. against 27.2 per 
cent for the Kast Midlands aod 
28.4 per cent for the UK, 

So when the future of thi 
coalfield was thrown Into 
doubt, the county's econotsk 
position was relatively weak. 
Phil Asquith, director of eco- 
nomic development at Mas* 
Held District Council, reflanttf 
to two inward investments, 
said: "Each step forward, fifci 
bringing in Toray and Johnson 
Controls, and the government 
shuts another pit - so its Uka 
walking the wrong way on a 
moving pavement at an air- 
port"’ 


N 


ottlnghamshire, under- 
standably, is grieving. 
To many miners it most 
seem that their Industry has 
been virtually wiped out But 
as their former colleagues in 
other areas can tell them. It 
could have been a lot worse. 

Nottinghamshire may have 
just six working pits left com- 
pared with several hundred in 
the mining heyday of the early 
twentieth century and 25 just 
10 year ago. But that is six 
more than the north-east of 
England and Kent, for exam- 
ple, both of which were once 
proud deep mine regions but 
now have none in operation. 

Leaving aside the tiny mines 
of the Welsh valleys, Notting- 
hamshire has a quarter of the 
total 16 mines that are being 
sold by the government in five 
“core” regions. It also has two 
pits, Calvert cm and Clipstone, 
which have been re-opened 
under licence this year fay RJB 
Mining, the private coal com- 
pany, after being rejected as 
unprofitable by British Coal. 

In addition Nottinghamshire 
is the headquarters of several 
companies and organisations 


The county’s coalfield has fared better than most, says Michael Smith 

Private prospects are good 


that either will or want to play 
a role in the privatised indus- 
try. The Union of Democratic 
Mfneworkers and Caledonian 
Mining are among those con- 
sidering bids for at least one 
of the five regions. 

The government has decided 
that tile Coal Authority, which 
will be responsible for licen- 
sing all coal mining activities 
In the UK and for maintaining 
mining records, will be based 
in Nottinghamshire. 

That the 000017*8 deep min- 
ing industry has survived at 
pn, albeit in a truncated form, 
is partly became of the rela- 
tively thick and accessible 
seams of coal available in the 
centre of the country. 

Being close to the UK's big- 
gest concentration of remain- 
ing coal-fired power stations 
in Yorkshire and Nottingham- 


shire has helped. 

Also influential has been the 
political debt owed by the gov- 
ernment to miners who contin- 
ued to work during the 1984-5 
national pits strike. Most of 
working miners were based in 

Nottinghamshire miners 
have shown they are 
willing to adapt 

Nottinghamshire and most of 
them subsequently joined the 
Union of Democratic Mine- 
workers when it was set up as 
a breakaway from the 
National Union of Mrnework- 
ers in 1985. 

The TOM’S leaders have had 
considerable access to minis- 
ters and they have used it to 
good effect. The decline of the 


TOM and Its Nottinghamshire 
heartland has been marked 
since its formation in 1985, 
but not nearly so severe as 
that of the NtJM and the 
national industry. 

While UDH-controlled pits 
have shrunk to about a quar- 
ter of their 1985 total of 25, 
the number of pits in the 
industry as a whole has fallen 
from 170 to about 24, a seven- 
fold decline. 

"The TOM and Nottingham- 
shire has been protected by 
the government, to some 
extent at least,” according to 
one former British Coal execu- 
tive. "But it is only partly 
because of the political debt 
from the strike. The fact is 
that Nottinghamshire miners 
have shown time and again 

that they were willing to adapt 
to changed circumstances. 


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Oou’l. welcome what the East Midlands has toolTeryou. 
For starters there's die assistance of the East Midlands Development 
Company. Whatever you need we’ll give you an expert team to 
help you get it. Acting on your behalf, they will make eveiy aspect 
of the move go as smoothly as possible, offering knowledgeable 
advice eveiy step of the way. 

The East Midlands region is 
equally impressive. Excellent air.iuad, 
rail and sea links all ensuring your 
major markets are just hours away. 
Hie widely diversified skills of a two 
millioastrang workforce whose labour 


EAST MIDLANDS FACTS 


A«e.«dput per baud 

chore UR overage. 

■ 

PBy Mow IK average. 
• 

(Over 250 hraqnowRd 

swnpmfa ohedy here. 


relations record is twice as good as the national average. 

Within the region's 15,600 square kilometres lies unspoilt 
countryside and coastline, a wealth of leisure activities, housing 
that's priced below the UK average and rap class educational 
facilities. 

To relocate your business into an area that speaks your 
language, telephone or fax us, or write to the address below. 

me 



ST MIDLANDS 

we speak your language 


East MitOmtdt Dminpamt Company IjmM. 
»*j, CaiHrbnJp. Hjcuiafumt S<77 IGF 
Ttt. oaflj R7*m.ftu;d«n fiam. 


“They have always been 
more flexible about working 
hours than colleagues in other 
areas, for example” 

That wnfingness was demon- 
strated again recently when 
more than 90 per cent of Notts 
minors accepted a package giv- 
ing them a £ 6,000 lump sum 
payment provided they 
accepted the 12-hour shifts and 
compulsory weekend work. 

In the central north region, 
which has nine mines less and 
is based in Yorkshire, less 
than 50 per cent agreed to the 
package which also provides a 
maximum redundancy pack- 
age of £27, OQOi 

In one sense the disparity 
between the acceptance rates 
should make central south - 
which comprises the four Not- 
tinghamshire mines of Bil- 
sthorpe, Harworth, Thorseby, 
and Welbeck, with Asfordby in 
Leicestershire, and Daw Mill, 
in Warwickshire - more 
attractive to potential bidders 
than central north. 

In another sense it will 
make it less attractive. Own- 
ers of central north would face 
redundancy bills of less than 
£7,000 per worker if they 
decide to make redactions 
among those who have not 
accepted British Coal's pack- 
age. 

What is not fax doubt, how- 
ever. is central south’s salea- 
bility. The government may 
not get much money for any of 
the five British Coal regions it 
is divesting but there are 
enough potential buyers 
around to ensure Out each 


will be find a buyer. 

In all, 33 companies have 
told NM Rothschild, advising 
the government, that they 
want to pre-quafify to bid for 
at least one of the packages. 
RothscfaiSd will not say how 
many have sought to pre-qnal- 
ify for central south. 

However, it is understood 
tint the list includes RJB Min- 
ing, a conglomerate compris- 
ing the TOM and Coal Invest- 
ments, a company headed by 
Malcolm Edwards, a manage- 
ment buy-out consortium 
headed by Boh Sddall, British 
Coal opencast director, and 
BTZ, the International mining 
conglomerate. 

The package's attractions 
include stockpiles of 5.2m 
tonnes and contracts to sen 
the two main electricity gener- 
ators 11 m to 12m tonnes of 
coal a year until 1998. It also 
has five opencast sites, all out- 
side Nottinghamshire. 

Reserves amount to shout 
220m tonnes compared with 
ynnoal output In 1993-4 of 
IL5m tonnes. But that does 
not mean that all the mines in 
the package will survive into 
the next century. 

Harworth is thought to have 
60 to 70 years of reserves but 
BUsthorpe Is unlikely to last 
more than three to four years 
unless large sums are spent on 
finding access to new seams. 
Nor can there be any guaran- 
tees about the future of the 
two farmer British Coal mines 
which are already being oper- 
ated by RJB. 

Richard Budge, chief execu- 
tive, says the mines are 
exceeding their production 
and productivity targets and 
that there is no problem in 
finding them a market Others 
remain to be convinced. 

British Coal executives 
accept that there may be a 
market for about six pits that 


Contorted and 
power stations 





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~~~1 — 

it has closed. But up to nine 
are being opened around the 
country. Neil Clarke, British 
Coal chairman, has warned 
that there could be casualties. 

That is far too pessimistic, 
according to the private sector 
miners, including RJB. 

Nonetheless there are few 
who doubt that farther con- 


Sovc* Han Ownt* Cam* 

traction is to come In the min- 
ing Industry. Nottingham- 
shire’s six mines may be good 
for a tow years yet But It is 
doubtful that the county will 
retain Jobs for all 8.500 miners 
still in employment Demands 
for increases in productivity in 
the mines now owned by Brit- 
ish Goal will see to that 


Paul Cheeseright finds the area is now eligible for UK and EU help 

Gates open to financing 


The economic plight of the 
Nottinghamshire coalfield has 
raised the eligibility of the area 
for a bewildering battery of 
finance from both the UK gov- 
ernment and from the Euro- 
pean Union. It has spurred the 
activity of local agencies fos- 
tering economic revival. 

The October 1992 announce- 
ment of coal mine closures by 
Michael Heseltine, the trade 
and industry secretary, was 
accompanied by promises of 
assistance from the govern- 
ment, some of which has mate- 
rialised, some 
of which has 
yet to appear. 

Last year’s 
redrawing of 
the UK 
Assisted Areas 
map left the Mansfield travel- 
to-work area, the largest town 
affected by the coalfield prob- 
lems, as a development area. 
AshfieU, on the east side of the 
county. Worksop and Retford 
are intermediate areas. 

This designation, by the 
department of trade and Indus- 
try, allows companies, either in 
or coming to the area, subsi- 
dies for projects which main- 
tain or Increase the number of 
jobs. The status provides an 
additional inducement to 
potential inward investors. 

The government has also 
promised extra help through 
fresh funding for North Not- 
tinghamshire training and 
enterprise council. One 
tranche of this has been 
secured. The Tec has signed a 
contract with the government 
which over two years and at a 
cost of £?m will provide train- 
ing and support for miners 
from the Bevercotes, Clipstone 
and SUverhiU pits. 

A further contract, covering 
the miners from the Bentmdc- 


Substcfies also help 
attract inward 
Investment 


Annesley and Ollerton pits 
which is yet to be signed will 
provide roughly the same 
amount of funding as the first 
agreement. Given that the 
Tec’s usual budget is £20m a 
year, the extra sums represent 
a considerable financial uplift. 

In a third move, the govern- 
ment overcame its antipathy 
towards an economic stimula- 
tion device of the early 1980s 
and promised to set up enter- 
prise zones. Companies setting 
up within them will benefit 
from an exemption from the 
uniform busi- 
ness rate, capi- 
tal allowances 
on new build- 
ings and 
relaxed plan- 
ning controls. 
But progress has been slow 
and statutory procedures 
allowing their opening will not 
be completed until the autumn. 
In fad; the acreage allotted to 
the zones is less than had been 
hoped for locally. 

There will be three: one of 
165 acres next to Junction 27 of 
the Ml, which will probably 
end up as a business park, 
another of 45 acres on the site 
of the old Mansfield colliery 
and a third of 40 acres on tfaie 
site of the old Manfcon colliery. 

Mansfield District Council 
has set its criteria for use of its 
zone. “We wanted to avoid 
moving jobs from one part of 
Mansfield to another,” said 
Fhfi Asquith, head of economic 
development. “New projects 
must create, per acre, 25 new 
jobs in the district of Mans- 
field, although not necessarily 
in the enterprise zone.” 

Further government funding 
will become available through 
the Single Regeneration Bud- 
get, administered through the 
government's regional office. 


How much is not dear. 

The amounts will depend on 
the skill of local groups in 
assembling public-private- vol- 
untary partnerships to run spe- 
cific projects. The government 
is introducing competition in 
order to sort out bids from 
across the country for a lim- 
ited pot of funds. 

“Cash is tight this year,’* 
says Mr Asquith. Mansfield, 
however, is pulling together 
“an area bid which focuses 
into neighbourhood bids. The 
government is looking not just 
for a wish list - it wants pro- 
jects to hang together, as does 
E n g li sh Partnerships”. 

The aim is to bring together 
different sectors of the commu- 
nity and to make sure that the 


private sector plays Us role in 
the wider regeneration process. 
This inevitably means a widen- 
ing role for agencies where the 
public and private sectors 
come together, such as Mans- 
field 2010, Nottingham Devel- 
opment Enterprise and the 
Mansfield, Sutton and Klrkby 
Enterprise Partnership. 

English Partnerships now 
controls regeneration funding 
such as the old derelict land 
grant “We used to do well 
with the derelict land grant 
We're waiting to see what will 
be given now. There were no 
major schemes in 1993-94," said 
Howard Jackson, director of 
the county council's planning 
and economic development 
department 


■ the 


> I I IN( .! I \M | |-U \ I l M\[ KSI1', 


... linkin'* cnicr/nist.' »» ith 

{>i r i i s <•. . , 


Benefit from the wealth of expertise in 
The Nottingham Trent University's 
eight faculties: 

■ Art and Design 

• Environmental Studies 

• Business 

• Humanities 

• Education 

- Law , Economics and Social Sciences 

- Engineering and Computing 

• Science and Mathematics 

For all your consultancy. lraimn H and slum 

^ 35?- _«"» S'tpinnie Jones on 
(060*.) 486535, fax (0602) 4S6S07. 







•5 ; .. 


'FINANCIAL TIME S TUESDAY JUNE 14 1994 


t --I 


* 


• m 


fjnnnctf; 



Mg toko Rich looks at the effects pit closure have had on Cotgrave 

A way of life transformed 


NOTTINGHAMSHIRE COALFIELDS REGENERATION 3 


if? was blasted from the 

Pit two months ago a 
crowd! Sjtaed on the grassy knoll over- 

CmIot, vu*chainnan or the town council 

5 ^ “dies southeast 

o f Notangham, remembers one man say- 

S ^SSta.i Jnbelierab]e of lndu^- 

siJrfSJSfiK clo3ed ' » - 

™ Cotgrave - lost the Jobs 
they had been promised would last 
through their grandchildren's lifetime. 
Many are still unemployed and those who 
have found work have often ***** pay 
tarts as a result of a move into lmdr jT ie d 
labour. “You have a lot of people with 
engineering and mechanical siririi w ho are 
just not using them." said Mr Coaker. “It 
is such a waste of talent and experience." 

At the height of its production, the col- 
hery employed 2,000 miners. More **** as 
per cent or the town’s families have rela- 
tives who worked in the p»in*> at some 
time during its life. The coming of the pit 
transformed Cotgrave. Sitting incongru- 
ously in the middle of Nottinghamshire's 
Green Belt in the heart of the constituency 
of Kenneth Clarke, chancellor of the 
exchequer, the colliery attracted miners 
from pits which had closed down in Scot- 
land and the north of England. 

After the pit was opened in 1964, Cot- 
grave transformed a rural population of 


300 into a mining village of 8,000. Within 
IS months of the colliery’s first shift, a 
housing estate for the miners had been 
built up in an arc around the old village. 

Mining gg the only industry in the vil- 
lage, gives Cotgrave its identity. “The pit 
was the social glue of the town," said Mr 
Coaker. “Everything revolved around the 
pit People lived, worked and socialised 
together. It was a total commitment to a 
way of life." 

Today, more than a year after Cot- 
grave’s colliery shut down, the town is 
stOl a close-knit community where ex-mtn- 

Subtkt changes have left concerns 
that the atmosphere created by 
the pit is deteriorating 

ers tease each other in the Miners Welfare 
bar and neighbours call out friendly greet- 
ings to each other on the streets. 

But subtle changes have left concerns 
that the atmosphere created by the pit is 
deteriorating. “We have a lot of commut- 
ers moving in who do not take part in the 
village." said Alan Brown, an ex-miner 
and a town councillor. 

It is not just harmony within the village 
that is threatened. Individual families are 
suffering as welL “One woman from a 
young couple told me that since her hns- 


Many ex-miners are looking on the bright side 

Changing direction 


ryr w 

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I# ; & 


Tram my point of view, it was 
the best thing they ever did - 
closing down the pit,” says 
Robert McDiarmid, a former 
miner at the Sherwood Colliery 
in Mansfield, Nottinghamshire. 
Mr McDiarmid now managing a 
local pub. “I am enjoying a 
new lease on life,” he says. 

Mr McDiarmid worked in the 
Sherwood Colliery for 20 years 
as a mechanic, chargeman fit- 
ter and a shift charger engi- 
neer. When the pit dosed in 
February 1992, he was made 
redundant with __ 

800 others. He 
had been down 
in the pit since 
the age of 16, 
although his 
father, also a 
miner, tried to 
dissuade him 

from taking a 

job there. 

After the col- 
liery dosed, Mr 
McDiarmid 
took a “three 
month holiday" 
and .then got in 
touch with a 
friend at Mans- 
field Brewery. 

The friend told 

him about an 

opening for an tfcDtannfcfc mt^o 
assistant man- 
ager at one of the brewery's 
licensed pubs, The Swan. He 
applied and got the job. He 
spent four months there before 
he moved to The Crown Hotel 
in Southwell, where he was 
manager for 16 months. 

Two months ago, he 
returned to The Swan to take 
over as manager, heeding up 
Mansfield Brewery's most prof- 
itable pub, which turns over 
more than £lm a year. 

Mr McDiarmid says the job 
resembles the work he did at 
the pit As a shift charge engi- 
neer at Sherwood Colliery in 
the last five years of his tenure 
he was responsible for the day 
to day mechanical operations 
or the pit and oversaw 40 men. 
At the pub he has a staff of 55. 
“The job here is about manag- 
ing people, and the job I had 
before was about managing 
people," he says. 

He admits he occasionally 
misses the camaraderie of the 
pit. but he does not miss the 
work. "The people who miss it 
are generally those who have 
found nothing else." he says. 

It is difficult for many ex- 
miners to find satisfying jobs. 


because the skins they used in 
mining are nut easy to transfer 
out of the pit Peter Newham, a 
former ropes master splicer at 
the Cotgrave colliery, which 
closed down last April, 
replaced and maintained steel 
rapes on haulage Installers in 
the mine. “Thera is no call for 
these skills elsewhere,* he 
said. 

Now he is a fish salesman in 
Longhbrough. a 15-mfle drive 
from his hnrnn What he misses 
most he says, is the “laughs 




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a new tame on Rfe 


with the lads". 

Many ex-miners yearn for 
the team spirit of the pit “You 
miss the comradeship,” said 
Alan Brown, an ex-miner and 
member of the Cotgrave town 
council. “You used to work 
with a team and yon worked 
with the same men for years. 
You knew how they ticked, 
they knew how you ticked and 
you trusted them.” 

In addition to the personal 
losses, the financial Mow hag 
been significant Mr Newham 
and bis family moved to Cot- 
grave in 198 T from Bulwell 
when the HucknaU Colliery, 
where he had worked since 
1979, was shut down. When he 
came to Nottinghamshire, he 
was told he would have a job 
for life, and his fimtily took on 
a large mortgage. “Five years 
later, we were back in the 
samp position," his wife Sheila 
said. 

Many other families have 
been similarly affected by pit 
closures. “There are people 
who feel trapped because they 
were encouraged to buy prop- 
erties malm commitments 
an the basis of salaries that no 


longer exist” said Bryan Bar- 
rodale, parish priest in Cot- 
grave. 

Mr Barrodale said that the 
husband of a couple he 
recently married was a wind- 
ing en gmaar at the colliery and 
is now a cbeesemaker making 
50 per wmt less than he did at 
the *ninft 

When Mr Brown first took a 
redundancy from the Cotgrave 
colliery in 1989, he took a job 
as a part-time school caretaker. 
“It cost me more in petrol to 
get there than I 
was making ," 
he said. Now 
he has a full 
time caretak- 
er's job at Tol- 
lerton Primary 
School, about 
10 miles from 
Cotgrave. 

Still, he is 
making noth- 
ing like what 
he was earning 
in the pit “We 
knew before we 
left the pit we 
wonld never 
get a job mak- 
ing that kind of 
money,” said 
Mr Brown. 

Even miners 
who have been 
able to get new jobs using their 
engineering or manufacturing 
skills have taken pay cuts. 
“Coal mining is one of the elite 
jobs in manufacturing,” said 
Carl Leonard, Greater Notting- 
hamshire Tec's special projects 
manager in charge of commu- 
nities affected by pit closures. 
“It is very difficult for the men 
to get jobs that have equiva- 
lent salaries because the job 
market has changed.” 

Mr Brawn is sees the bright 
side, however. As a caretaker, 
he does not have to contend 
with the three shifts a week 
that mining required. “We 
used to call the 11:15 pm to 
fcSOam shift the happy shift 
because we were so miserable.” 
he said. “It is marvellous now 
to have a regular day shift 
Hie kids say to me, “why are 
you ringing Mr Brown?* and I 
say ‘of course I am - I am not 
working nights any mare’.” 

Motoko Rich 


T he textiles and einthmg 
industry, so often associ- 
ated with industrial 
rig**™ in the face of low cost 
competitors, is emerging as 
one of the main immediate 
hopes for a revival of the Not- 
tinghamshire economy. 

This is partly defensive. 
Even if employment levels in 
tiie industry have been declin- 
ing for decades, there are, says 
Howard Jackson, director of 
the county co uncil 's p lanning 
and economic development 
department, “27,000 still 
employed in clothing and tex- 
tiles in Notts. We dearly can’t 
afford to see that go down”. 

The industry’s geographical 
location is also significant. 
Clothing and textiles are bet- 
ter represented in the coalfield 
area than in the national econ- 
; omy. But what seemed an 
industry of ltmitnfl prospects 
has received a boost from the 
establishment of a plant in 
Mansfield by Toray Textiles 
Europe and the decision of 
Johnson Controls to manufac- 
ture car seat covers in the 
town. The task now is to turn 
these isolated inward invest- 
ments into the core of growth. 

Toray 's site, in fact, is dose 
to the forthcoming Mansfield 
enterprise zone and the dis- 
trict council has acquired 60 
acres next door, opening up 
the possibility of a new tex- 
tiles and clothing manufactur- 
ing district. Indeed, the coun- 
cil has started receiving 
investment enquiries from 
companies in the sector. 

In the longer term, growth 
prospects are likely to depend 
on a strengthening ability to 
produce high quality products 
following tiie example of Ger- 
many in the rebuilding of its 
clothing industry. 

The Nottinghamshire Inter- 
national Clothing Centre - 
developed by the county coun- 
cil but drawing extensively on 
the services of Nottingham 
Trent University - will be a 
focal point for the latest tech- 
nology, design and practice in 
the industry. 

Efforts to regenerate the tex- 
tiles and clothing industry 
show the way in which the 
county is developing its infra- 
structure in order to extract 
faster growth. Because the 
economy cannot rely on 
inward investment but must 
depend on companies in busi- 
ness, the quickest way to gen- 
erate growth is to support 
them and encourage diversifi- 
cation into more technologi- 
cally advanced products. 

Such growth is possible in 


Eligible for finance 


CLOSE TO Al 

47, 000 SO FT ENGINEERING WORKSHOPS 
“ 15 ACRES ” 


pOR Sale 


COTGRAVE 

NOTTINGHAM 


nFVELOPMEHT OPPORTUNITY 
42-68 ACRES 

life es 

■WffifflST TKf 


Continued from page 2 
Hopes of being able to obtain 
up to £5m during the last 
financial year from En glish 
Partnerships were thwarted, 
but the council hopes this year 

for funding of that order. 

Other government bodies 
involved in the coalfield 
include the Rural Development 
Commission, which is active in 
small projects running from 
the recycling of furniture to 
housing advice and training. 

The Rural Development 
Commission is part of an infor- 
mal coalition of organisations 
which cooperate on mi ad hoc 
basis to succour new and exist- 
ing business. With British Coal 
Enterprise, the county council 
and North Nottinghamshire 
Tec, it is a source rtf venture 
capital and loan funding. 

Amounts are grnaU by the 
standards of private sector ven- 
ture capitalists. The Tec, 
which, said Pat Richards, the 
chief executive, had supported 
300 companies over the past 
two years, has a limit of 
£15,000 on the loans it will pro- 
vide. 

British Coal Enterprise has 
what it calls “250 live clients" 
in the Midlands - it does not 
keep its statistics on a county 


basis - and has funded 639 pro- 
jects in alL It is prepared to 
provide loans of up to £lm and 
equity capital of between 
£25,000 and £250,000. Often the 
lending js unsecured. “We are 
very much at the risky end of 
.the market,” said Winsor 
Lewis, the Midlands regional 
manag er. 

This panoply of funding is 
significant in drawing in funds 
from Brussels. EU funding 
depends on the provision of 
local funding at a ma Idling fig- 
ure, so no UK involvement 
means no European involve- 
ment In the past Nottingham- 
shire successfully attracted 
European finance through the 
Regional Development Fund 
for economically weak areas, 
the Soda! Fund, a source of 
money for training, Rechar, 
(Erected at restructuring coal 
mine areas and Retex, concen- 
trating on areas where the tex- 
tile industry has declined. 

Council officials recently 
reported that Regional Devel- 
opment and Rechar could pro- 
vide £65m of funding for appro- 
priate programmes over the 
next three years. This would 
be a fillip to infrastructure pro- 
jects as the county puts its 
economy on to a new tack. 




band left the pit, they have done nothing 
but argue," said Bryan Barrodale, Rector 
of the Cotgrave Anglican Parish. 

For many wives of ex-miners, having 
their husbands out of work upset s dynam- 
ics in the home. “A lot of femffigg were 
adjusted to living with three shifts at the 
mine," s«ih Rhoiin Newham, wife of an 
ex-miner and former head of the Cotgrave 
Women’s Action Group, which cam- 
paigned to keep the pit open. “Suddsily 
having their husbands at homo all day is a 
big change. That Is probably one reason 
wby many women have gone to work.” 

Several Cotgrave women have taken 
jobs or started rin ki minding. “Men are 
becoming house and women are 

becoming the bread winners,” said Ken 
Stobbard, annthwr ex-miner from Calver- 
ton, a nearby pit, and a county councillor 

who is unemployed while his wife works. 

The pit's closure bas also highlighted 
Cotgrave 's lack of services, such as a sec- 
ondary school, cheap shops, and now, a 
bank. TSB closed down Cotgraves only 
branch in April. Some load officials 
believe the speed of the pit’s arrival may 
have distracted attention from plans to 
bring such resources to the village. “The 
pit cut across a lot of long term planning 
schemes, and the town never got a lot of 
the resources it deserved,” Eric WooL 
sey, a town and borough councillor. 

Another problem is that Cotgrave - tra- 




Wasted talent many In Cotpuve have hod to move tab unsk&ed labour since the pit dosed 


drdonally surrounded by affluence - ^ 
not been eligible for assisted area status or 
EU funding. Officials are determined to 
take advantage of government money that 
is available in the wake of the pit closure. 
“If one good thing will came out of the pit 
shutting down zt wlU be that we will get 
some of the services we should have had 
but never did," said Mr Coaker. 

To date, the town has received £400,000 
from the government's Coalfield Area 
Fund. With tha money, ibwhriHfe Borough 
Council has built six industrial rmit-c on 
the edge of the village which have been let 
to small 'businesses. Nottinghamshire 
County Co uncil will use a portion of the 
money to build an additional four nwi*« on 
to the town’s leisure centre, which is now 
being renovated. 


The county council is also tunneling 
money into Cotgrave through the “New 
Deal for Notting hamshire ", a county-wide 
response to pit closures in the area. The 
council has set aside money for training, 
traffic management, environmental 
improvement and job creation. 

A month after the pit closed. Greater 
Nottinghamshire Tec opened an Opportu- 
nities Advice Centre to help the miners 
who had been made redundant and other 
local unemployed residents to find jobs 
and get training or further education in 
new fields. 

It also provides a Citizens Advice 
Bureau service once a week. Benefit 
advice is by far the most sought after. 
When the centre opened, 577 people were 
registered unemployed in Cotgrave. Of 


these. 252 have been placed in lobs, leav- 
ing unemployment in the village running 
about 9 per cent, with 80 miner s still using 
the centre’s services. It has also helped 
some of the town’s long-term unemployed 
to find jobs. 

Government funding for the Opportuni- 
ties Advice Centre will cease in May of 
1995. Carl Leonard. Special Projects Man- 
ager for Greater Nottinghamshire Tec, 
said: “We will have an exit strategy. We 
won’t just pull out the plug and go.” 

Cooker believes the centre is doing a 
good job, but arrived too late. “Why did 
they build a lifeboat when the ship was 
sinking?" he said. 

While training people for new jobs is an 
immediate response to the pit closure, 
local officials want to bring new Industry 
on to the pit site. British Coal and Rusb- 
cliffe Borough Council have produced a 
development brief for the colliery, where 
they hope one industrial or leisure devel- 
oper will take over the whole site. 

Local officials believe the site’s rural 
location, and proximity to rail lines, 
makes it an ideal site for a large factory or 
leisure park. In 1995, the A46, which runs 
near the former colliery, will be turned 
into a dual carriageway and officials 
believe It will provide the infrastructure 
for industry. 

Mr Coaker says: “Whatever happens 
here it won’t produce the same amount of 
jobs that the pit did. However much you 
do you will never replace what has gone." 

However, for ex-miners, what is impor- 
tant is the thought or a job. If new indus- 
try was built on the pit site. Peter 
Newham, a former miner from Cotgrave, 
says: “1 would be one of the first on the 
door step applying for a job”. 


The textiles industry offers good prospects for jobs 

A focus for revival 


% Mhttin gfiamghir w engineer- 
ing Industry which, with coal 
mining and textiles, has been 
a pillar of the traditional 
county economy. It will 
remain so despite the long 
term trend of lower job num- 
bers and co mp e ti tion resulting 
from the strengt h ening of the 
ED’S internal market. 

The loss of the coal mine 

lBurirft has wunpairipg chiming 

new products. It is hoped 
Toyota’s new car plant in Der- 
byshire will provide a new 
stimulus. But the speed of 
grow th in the longer term will 
depend OU stren g t hening the 
academic-industrial nexus. 
Although No ttin gham Univer- 
sity has its Hxghfiekl science 
park, faculties designed to 
profit from the research capa- 
bilities of the universities have 
not yet been expanded. 

The universiti es have been 
active in research vital to 
regional industry - Notting- 
ham University’s work on 


composite materials for the 
automotive industry, for 
example - and they are becom- 
ing increasingly active in 
applying expertise to immedi- 
ate economic problems - Not- 
tingham Trent University’s 
work in unqmTap fa g technol- 
ogy transfer in the north of 
the c ounty is an example. 


Economic diversification 
is Bkely to come from 
the provision of services 

But experience elsewhere 
has diown that the quickest 
economic diversification is 
Ukely to come from the provi- 
sion of services, in the way 
tfm* Co v en tr y sought to offset 
erosion of the manufacturing 
base by establishing a back 
office sector during the 1980s. 

Thus importance is attached 
to the duririm i of the Inland 
Revenue to establish offices in 


Nottingham which open next 
year employing 2,000 people. 
Accountants and bankers in 
the City Of Nottin gham see 
considerable scope to expand 
the provision of financial ser- 
vices as none of the cities in 
the East Midland* has a domi- 
nant role such as that of Bir- 
mingham in the West Mid- 
lands. 

But none of this is of rele- 
vance to a redundant miner in 
a village near Mansfield. In 
the north at the county, where 
sympathies often lie closer to 
Sheffield than Nottingham, 
Pat Richards, chief executive 
of the North Nottinghamshire 
Tec, sees “an emerging com- 
mon vision”. 

This envisages a develop- 
ment project which would 
draw attention to the area and 
create jobs, such as Glasgow 
Hospital and the conference 
omitre in Maastricht, Nether- 
lands. How such a scheme 
might be funded is undear. 


Ideas about the nature of 
growth are therefore more 
clear for the medium and 
longterm than the short term, 
where corporate health and 
job prospects remain tightly 
linked to the movements of 
the national economy. 

Hence the concern of agen- 
cies such as the Tec and Brit- 
ish Coal Enterprise to help 
companies in the difficult mo- 
cess of emerging from reces- 
sion and equipping former 
miners for jobs as they become 
available. 

The demand for such a jobs 
service is dear. The Tec, at 
what it calls its gateways, 
received 27,655 visits between 
October 1993 and last April 
which resulted in more than 
630 interviews. 

The ontcome was that 232 
people were placed in jobs and 
a further 260 people were 
offered training and guidance 
of different types. 

British Coal Enterprise said 
that it bad been resettling 
miners at the rate of 100 a 
week either in jobs or retrain- 
ing for a specific post What it 
will not undertake is training 
an a speculative basis. 

Paul Cheeseright 


We fund the firm, 
that makes the goods, 
that brings the growth, 
that creates the job 
that Jack got. 


Over the past 10 years British Coal Enterprise expertise has helped create 
thousands of new jobs in coalfield areas, through the effective application 
of wide-ranging activities which include: 

■ FAST TRACK LOANS BCE provides up to £25,000 without 
security, but with a rapid approval process to help small businesses 
start-up or expand. 

■ LARGER BUSINESS FUNDING BCE offers flexible gap 
funding' loans of up to £1M for businesses creating new jobs. 

■ EQUITY INVESTMENT BCE provides £25,00G-£250,000 via 
Ordinary or Preference Share packages with sensible exit targets. 

(Aff loans and investments are subject to scrutiny by BCE's appraisers.) 

■ FUND MANAGEMENT BCE can control, improve and 
maximise the benefits of other agencies' enterprise funds. 

■ OUTPLACEMENT BCE'S vast experience is now used for 
career counselling at all levels, to generate fast and appropriate 
re-settlement for clients. 

■ PROPERTY ‘BCE's investment in modem workspace provides 
flexible letting terms for offices, high-tech and light industrial units. 

To find out more about how BCE's experience, advice and resources 
can help your business to succeed, contact Cheryl Adams at British Coal 
Enterprise, Edwinstowe, Mansfield, Notts NG21 9PR. 


FOR MORE INFORMATION PHONE CHERYL ADAMS 
FREE ON 0800 622517 OR FAX ON 0623 826800 




^7 : 







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Helping Create Jobs 


» 








FINANCIAL TIMES TUESDAY JUNE 14 1»4 


MANAGEMENT: THE GROWING BUSINESS 


Ian Hamilton Fazey on a 
NatWest lending checklist 

Campari for 
accountants 


T he question is normally 
delicately put Many small 
businessmen, in discussion 
with their fanV managers 
over loans, are used to being asked 
whether they would like some 
insurance. 

The key issue - both for the busi- 
ness executive and agamies trying 
to uphold banking standards - is 
whether the hank* jug fatVfagr unfair 
advantage of their iwflnnwH*) posi- 
tion and possibly selling customers 
inappropriate products. 

Behind the controversy are the 
efforts being made by most of 
Britain’s high-street banks to step 
up sales of insurance and pension 
products to add to their traditional 
activities of organising loans and 
overdrafts. 

One BMW ra^iminw^ th at hanlrc 
routinely mis-sell insurance prod- 
ucts is Ml Raynes, chairman of the 
National Federation of Independent 
Financial Advises, and partner in 
Sheffield-based financial consul- 
tancy Baynes Hodder Davison. 

Be says banks use “intimidation, 
duress and coercion” to pressure 
customers into buying financial 
products that they either do not 
need or would do better to buy else- 
where. 

Raynes denies be is bashing the 
banks because they are competitors 
to the 1,700 firms of finaririni advis- 
ers that his association rep rese n ts. 
“I am passing an the stories that I 
hear from my member companies 
about banks’ activities/’ he says. 

What cannot be denied is that 
banks are often in a good position 
to seD such products, because of the 
leading role they play in the lives of 

many small businesses i topwiAmt 

on loan finance. Li some cases, 
insurance protection may be 
required as part of the procedure 
for firing up a lo an , but heart flffiiw 
rules decree that they should not 
overly push their own products. 

In recent months evidence has 
emerged that banks do sometimes 
take advantage of their special posi- 
tion tO “persuade” a wmtnmAr that 
a specific life-product sold by the 
bank may be advantageous, espe- 
cially if tha hanlr has just ostensibly 
done the customer a good turn by 
arranging a loan. 

Chris Eadie, the deputy banking 
ombudsman who investigates bank 
complaints, says he has looked at a 
number of cases of alleged mis- 
selhng, involving both small busi- 
nesses and individuals. The prob- 
lem is difficult- to Quantity because 
of a lack of breakdown in the 
ombudsman’s statistics. In 1992-93 
the nmhuAaran investigated l .Oft l 
complaints of an types, recommend- 
ing that hanks paid compensation 
in 36-4 pm- cent of cases. 

The British Bankers' Association, 
die main UK banking trade body, 
says there have been “a few cases” 
of nris-seQing. The hank managers 
involved are mainly “misguided and 


I f a National Westminster bank 
manag er mIw yon in for 
Campari, he Is not being 
sociable. As accountants in 
Greater Manchesta - have learnt 
recently, it is the acronym used 
by the UK high street bank for 
its lending decision checklist 
Stung by snail-business 
onrtplaintsof harsh treatment 
by banks during the recession, 
NatWest decided to try to improve 
mutual understanding by 
ex plaining itself better. 

“Open seminars for small 
businesses tend to be 
confrontational," says Trevor 
Adamson, director of the bank’s 
Manchester region. “We felt we 
would achieve more by talking 
to accountants who act for small 
businesses." 

To distance the bank farther, 
be persuaded the local society 
of chartered accountants and 
Manchester chamber of co mmer ce 
and industry to run jointly four 
seminars, which NatWest then 
sponsored as part of Adamson's 
local contribution in his year as 
chamber president. 

Campari will never be the same 
again far the 140 accountants 
who have listened to Ian 
Mcllveen’s explanation of its 

meaning . 

To Mcllveen, who makes 
regional hud office lending 
decisions far projects costing 
more than local branch managers' 
discretion Unfits, T is for 
character. Only businesses and 
projects of discernible good 
character will get their first tick 
on the checklist 
“A" is for ability - not just 
of the management to do what 
it says it will do, but also of 
professional advisers such as the 
I accountant 

“M" is for means - not In terms 
of money, but tiie means and 
resources to run the business 
transparently so the bank can 
keep an eye on its investment 
In particular, whether the 
business produces regular, 
up-to-date management accounts. 

“P” Is for purpose. There must 
be a clear reason for seeking 
money, with proper goals. This 


is where Mcllveen also makes 
sure qf legality, environmen t al 
cons derations ami the lender's 
potential 

“We like lending to things that 
are already under way,” be says. 
Tids makes him wary of 
diversification: a business 
w pmiiling In ftmHUar ten-Hnrv 

is more likely to know how much 
extra working capital might be 
needed, or whether it needs more 
fixed assets. 

“A” is for amount Mcllveen 
worries more about lending too 
Httie than too much, as ft is 
difficult to lend more for the same 
thing later. The bank also wants 

the customer to be potting 
something in as evidence of being 
in earnest 

“R" is for repayment “If we 
cant tick tins, we might as well 
go home, 1 ’ Mcllveen says. "There 
will be no more open-ended 
pledges, such as with, ove r d raft s 
in the 1980s which never seemed 
to be reduced." 

finally, “T is for interest, the 
price the bank is going to charge. 
Only at this point is security 
considered. Mcllveen says 
security is necessary to reassure 
the bank’s depositors and 
shareholders, hut is not now semi 
as a prime requirement in 
lending. 

“If yon have to realise security, 
it costs so much to get yonr 
money back you lose all your 
profit and more,” he says. “It 
is at the and of the checklist 
became the ww* iw pnrtant fflng 
is whether the project stands 
up-” 

The accountants were generally 
happier to know where they and 
their small business clients stood 
and how to manage the 
relationship better, particularly 
as Mcllveen also advised an how 
to approach hank manap iv 

Popping in for a vague chat 
aiwmt extending eraKwg facilities 
is fil-advised; written business 
plans — enli vened by phot o graphs 
— are encouraged, as are term 
loans at fixed interest rates. Only 
then win NatWest send someone 
to look round to start scoring 
“C" for character points- 





' {S __ ... • 









E sm ond Watso n , cfafaw his bank Bntod a raqu«t tor an tacrooaod overdra ft to dbctngtanv over bb pension arranflainotrta 

We have ways of 
making you buy 

Some bank branches are accused of using unfair 
pressure to sell financial products, writes Peter Marsh 


over-enthusiastic” rather than mali- 
cious, the association, says. 

As for individual banks, they 

deny charge s of coerci on . National 

Westminster, for instance, says its 
branches are always prepared to 
quote for business but “would never 
insist” that insurance was arranged 
through its own subsidiaries. 

One Mwipiiratinn is that small 
businesses may not always wish to 
complain. They may feel that 
money paid for the insurance prod- 
uct is a small price for favourable 
treatment. 

One small busine ssman in the 
north-west of En gland who says he 
was in this difficult position daimt 
the manager at his branch pressed 
him to take out two policies 
arranged through the bank’s finan- 
cial services subsidiary, both cover- 
ing Ql health. Rarii thn» ty h i ^biwi. 
sations about insurance came up 
when the bank manager was 
talking about his overdra ft . "I felt I 
was being mugged," he says. 

One person prepared to go public 
with bis com plaint - although his 
hank de nies his claim — is Rnramri 
Watson, owner of Middlesbrough- 
based Cleveland Camera Company, 
which runs two photographic shops 
in northeast En gland. 

Watson says he was told by his 


manager at Yorkshire Bank that a 
request for a £10,000 addition to his 
£50,000 overdraft would be consid- 
ered more favourably if he diverted 
some of the £6,000 a year going into 
his current personal pension to a 
new pension arranged by the bank. 

Watson agreed to put £2,400 a 
year into a new pension arranged 
by Yorkshire Batik’s financial ser- 
vices subsidiary with insurers Cleri- 
cal He cut the xmnnai pay- 

ment in his existing pension 
scheme organised through Allied 
Dunbar, another insurer, to £3,600- 
Because of the start-up costs of the 
new pension, the switch is unlikely 
to have benefited Watson finan- 
cially, according to independent 
financial experts. 

Yorkshire Bank says it never put 
Watson under any pressure and 
that the switch was in his best 
interest. linking discussions over 
loans to selling pensions “is not 
part of our policy”, the banks says. 

In a third case, the owner of a 
building company in London had 
become overdrawn an his £300,000 
o verd r a ft limit and was talking to 
bis manager at Lloyds Bank about 
increasing it 

In a letter sear by the Financial 
Times, foe bank toW him it would 
continue to support him subject to 


several conditions, one of which 
involved taking out £750,000 worth 
of insurance covering the possibil- 
ity of accident or 01 health being 
suffered by himself or his business 
partner. 

The cover had to be arranged 
through the bank’s financial ser- 
vices subsidiary. After the business- 
man complained, foe bank dropped 
the condition. Lloyds says the stipu- 
lation about going through the 
bank's financial services subsidiary 
should not have been made, as the 
customer should be allowed choice 
over such insurance. 

Three questions arise for bank 
customers with a possible grouse: 

• Is the insurance necessary? (In 
some cases where loans are being 
arranged insurance protection 
against death or ill health may be 
in the interests of both the cus- 
tomer and the bank.) 

• Is the customer given the chance 
to shop around? (The bank should 

main* dear that the nidwnw nan 

choose from other sellers.) 

• Is the bank being neutral as 
regards its influential position on 
learns? 

If the an sw e r to any of the three 
questions is no, the office of the 
Banking Ombudsman (071 404 9944) 
will be eager to hear. 


Training 
at long 
distance 

C D-Rom and cheap 

personal computers ire 
increasingly providing 
large companies with an 
Alternat ive to formal training 
through taught courses. 

The combination of voice, 
video, text and graphics allows 
mangers to interact with the 
“computer-tutor” in a way that 
is proving effective and popular. 

For large organisations the 
ability to offer staff this so-called 
“distance learning” is also 
cheap. Managers do not need 
to be ferried to training centres 
and housed. And once the course 
has been paid for. the company 
has a re-usable resource. 

Now the opportunity to take 
advantage of this so-called 
distance learning is available 
to smalle r companies. Soane 
CD-Rom-based multimedia 
management courses can already 
be rented through 'TECs and 
training colleges. 

Business Link Southern 
Derbyshire is one of several local 
business support agencies with 
titles available for rent on or 
offsite. 

One company. Xebec Multi 
Media Solutions, a 
Gloucestershire-based company, 
is already providing multimedia 
courses which cover topics such 
as the management of tasks, 
lpiyHng teams and business 
c ommunicat ion. 

Its latest title. Money Business 
I, tackles the crucial question 
of bow companies keep control 
of cashflow. Aimed at junior 
managers, the first module in 
the seven-hour course is little 
more advanced than the early 
training videos produced by 
Video Arts that featured John 
Cleese and Ronnie Corbett. 

However, later modules within 
the course show foe power of 
multimedia. Students change 
assumptions in cashflow 
forecasts and look at the 
implications of large orders on 
a company's need for working 
capital. 

At £1.149. Xebec’s Money 
Business course may not top 
every company’s shopping list. 
But training via interactive 
multimedia systems is forecast 
to grow at a rapid rate. 

Richard Gourlay 


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FINANCE 

Venture Capital available 
from £250.000 upwards. 
Sensible Rates, Sensible 
Fees. Broker enquiries 
welcome. 

Anglo American Ventures LM 
Tec (0324) 201366, Fax *0324) 201377 


Financial Advisors 

UA Telecommunication company 
seeking finanrial agents in Europe, 
Asa and Middle East only to 
offer a unique high yield 
(insured) program. 
ExceHeot Commissions. 

If iotemsed plane call David or Sew 
T«! USA: 391-897-4163 or 
Fax USA: 361-8974440 


VAST NEW MARKETS 

in the fast-growtng Vending 
industry have been opened up ty 
our Ingenious machines. 

We seek a merger to exploit 
wuridwlcte sales potential. 
Writs Go Bax No: B2926 Finanrial 
Times. One Southwuris Bridge. 
London SE1 9BL 


BUSINESSES WANTED 

ARCHIVE AND DATA 
STORAGE 

Our client. a.UK public company looking to enter the 
archive and data storage sector, seeks to acquire 
companies: 

• Engaged in storage of business records of all 
kinds, including: 

- hard copy documents and ffles 

- computer media 

- technical drawings and artwork 

• Serving m«qor cities and business centres in the UK 

• Size: no minimum turnover or profitability 
Vendors or their advisers should contact either 
Tania Pepper or Marcus Moir on 071 388 4242 in 
absolute confidence. Your identity will not be revealed 
to our client without your express permission. 

Livingstone Fisher pic 

Acre House, 11-15 William Road, London NW1 3ER 


\\V LIVINGSTONE FISHER 


The Acquisition & Disposal Specialists 
A Member of HMBRA 


BUSINESSES WANTED 

DISPOSABLE MEDICAL 
PRODUCTS 

Our client, part of an expanding international healthcare 
group, seeks to acquire UK companies: 

• engaged in the manufacture and distribution of 
disposable medical products including orthopaedic, 
orthotic, critical care, urology and wound care 
products 

• supplying the hospital and home healthcare markets 
in the UK and Continental Europe 

• profitable on turnover up to £10 mlKon. 

Vendors or their advisers should contact Jeremy Furnlss 
on 071 388 4242 in absolute confidence. Your identity 
will not be revealed to our dient without your express 
permission. 

Livingstone Fisher pic 

Acre House, IMS William Road, London NW1 3ER 


\\ yL iVINGSTQNE FISHER. 


The Acquisition & Disposal Specialists 
A Member dFlMBRA 

»TTTTTTVT»TTTTVTTTTfTTTTT?TTTTTTTTTTTTYTm 


BUILDING INDUSTRY 
CHEMICALS 

We are the European office of a U.S. of A b uilding product 
manufacturer already marketing technology based ranges into 
Europe. We are now ready to manufacture in Europe and wish 
to acquire a company already manufacturing or marketing 
adhesives solvents paints or other building industry related 
chemicals. 

Wrftt to Box fio. B2TO2. Hraaoi! Times, OteSoB&wazfcBoc^ Lcodoc, SE3 9HL ■ 


STRATEGICALLY 
PLANNED ACQUISITIONS 

and herd-rfaridng individuals 
have mads rkis International 
manafactnrer spedakxmg in 
value-added frozen foods a 
leader moor industry. 

If you have a ambman annual sales 
volume qfSlOotBRon (maxumm 
open), we would tike to left to you 
about acquiring yoiu- business. 

Write 8 m 82908, FstncUTtan. 
One Soskrak Bridge. Loodoa SSI SHL 

ELECTRICAL OR 
MECHANICAL 

contracftM/facUttes engineering 
company (or associated 
tectirdcal services). 
Carrying out installation or 
maintenance work. 

Bcjsed wtttVn M25 but (deafly 
south/canfrd London. 

\Mte IoBck No B2935. RrextcttUrwi 
Q»Sxft»jafcafc^,tgndcnSEl 4K. 

BUSINESS 

SERVICES 


Save on 
International 
Phone Calls! 


USA only 24p per min 
AustraSa 40p par into 
No VAT 

Ash aboat oar fou? rates 
to other countries. 



TRAFALGAR 

SQUARE 

- Your business address and 
dedicated telephone line In 
London, Paris, BerSn, Frankfort. 
Madrid and 80 other top 
locations worldwide. 

CBS Regus on 071 872 5500. 


WANTED 

FreOtaHa prime or fwbik- uwpuv 
in t rrru o J ta rcpcttmd cn tnprac pane 
tmsactiou vriA n oppoRuKy far profit 
pneratiaa agxaat tinted ri*k sad tax 
tidier ia faha yens at a bcncfidal coat 
if required. 

fli»t r h i in i r .H> A|w fcffc hi- 
BwHk BKS Ptaariri Tim. 
Oar S wa hoa tk Mfae. L^taaSEl om. 


REFRIGERATION 
COMPANIES WANTED 
- TaOt so the right people • 

We are seeking companies nitfiin 
this industry who have potential. 
Please contact: Box No B2920 
Fknacial Ttaes. One Southwark Bridge 
London, SE1 9HL 

A UK BASED PRIVATELY OWNED 
AMD FUNDED COMPANY wtataa to 
area** a ntnjaegon midng or renaonri 
mDUtang compreiy wfih Os own rings of 
consumer products. Currant turnover 
ahott (m mare Btan 0*00,000 par anruro 
'MJh a provan tree* raconLPrinetpata otay 

ataxSd write in mo flrat InatanoB gM« MM 

Oital* In B0K NOS2819, Rnanctat Ttaaa. 
Ck» Souftmarit Bridge, London SEt H, 

HOTELS & 
LICENSED 


LARGE 
COUNTRY INN 

SnUAIED ODESHIRE VILLAGE 
6 Bedrooms 

pins staff accommodation. 
T/O estimated SfiOOK, 
50/50 Food/Drink 
under management 
Recently £400t refurbishment. 
Freehold. 

Principals only write to 

Boot No; B2922 Financial Tunes, Ooo 

SooAwaifc Bridge, Loodoa SGI 9I1L 


AUCTIONS 


NEXT AUCTIONS 

of life aasunuicc policies 
for investment will be held 
oa 16 Jo Be la London and 
JO Jute hi Manchester 
Telephone 

R£. Foster A Cranfleig 
•71-408 1941 ter catalogat 

A Member of t'lnbti 


OFFICE FURNITURE 


We have - direct from the manufacturer - new hinh , nlifc 
executive and system ranges - conference ^ 

O. veneers, irSfiXt 


w,th discount of up to 40% from R.R.pV 


. , London Showroom for viewino- 

?.°ss?,tr T2 — - 

Full camcad an d planning services. 


LINEABUROLTD Te.:o aq , e jr 


X&M 
■ i:t :ci *. 













FINANC ' AL TIMg S TUESDAY JUNR M UX* 


* I Li 




BUSINESSES FOR SALE 






DENTAL PRODUCTS 
SUPPLY CO FOR SALE 


_ CtvHb hlaHU 

~ ItotttI Pjjm Bttn| 

‘<NoiWb|nMiiit 
** Umb. pim, „* 


Tfc» Helmet Pvtmkip 

TtWrij. Ham*. Mom Sum 

MANCHEsn».m5wr 

•msmun 

CORPORATE mAMCEAIMGQR&MJItOVSED 
sr nc nemurc armwnBCD 

« ENOLMDMO WM£S TO 
CWHT ON MCSTMOrr BUSK8S 


PUBLICATIONS 
FOR SALE 
Profitable, niche, magazine 
and directories for sale 
with further potential for 
growth. Long established. 
Sector leadens 

Write to Box No: B2V29 
Financial runes, One Southwark Bridge. 
UndonS&t m 

EASTANGUA- 
MARKET TOWN 


M Restaurant 
U Prime Location 
a TJO £240,000 

a Business and Freehold Premises For 
Sole 

Write Box B2923, Financial Times, 
One Southwark Bridge, 
London SE1 9HL 

UNIQUE OPPORTUNITY 

To Acquire a small well known 
and established performance 
car accessory business, 
setting components throughout 
the UK, Europe and Worldwide. 
T/O; £360^000, proven track record. 

Write to Box No: B2926 Financial 
Tunes, One Southwark Bridge. 
London SEl 9HL 


LOADING BAY 
EQUIPMENT SUPPLIER 

Established Company with Blue Chip 
customer base and exclusive product 
range seeks merger or lakeuver with 
larger Company 10 realise full 
potential. Key manapnnent available. 
Principals only. 

Write to Box H21W0, Financial Tims, 
One Southwark Bridge 
tondonSEI 9HL 

Successful Electrical 
accessories manufacturers 
West Midlands. 

T/O £2m+. Assets £1M. 
Owner retiring. 
Acquisition by similar 
company preferred. 
Principals only reply to Box No: 
B2931 Rnanctal Times. One 
Southwark Bridge, London SE1 9HL 

LEGAL 

NOTICES 

Na.OQSeOrfim 


IN TUB MATrOLOF 
KOXBOKO CROUP PLC 

IN TIIK MATTEK OF 
TIIK COMPANIES ACT l«S 

NOTICE B HEREBY GIVEN dm « PMirkw 
»■» {Hetenlcil to llci MlJarfj High Own of 
Jus ire, Ctwwery Dtviuoa «■ 23nl l*ry 19W te 
the orafimunn of Ur cancribSan at the shoe 
! ■». uiii i iti jraxM of the above nn—vl Company 
by f 49.4RS. I<t&.7fc. 

AND NOTICE is limber give* lhal UK said 
Peliliun is directed in be beard before Mr 

HcgtUrtr Buckley m I be Royal QM ut Junlce, 
Strand. Londoo WOA 2LL ua Wedseaday the 
22nd day Of June l*W. 

Any Creditor or Shareholder of the xaid 
Company dewing lo o«k use the making ot u 
OrJrr fur I he confirmation of the said 
oocclblum of share premium acWMl ihovld 
appear ar the time of the hearing b paeon or by 
Cuamcl lur ifcm purpiwc. 

A ropy at the ull Petit ioa wltl hr MM to 
any prison requiring the name by the 
undci mentioned Solwikira on payment of the 
Regulated Charge S* Ihr same. 

Doted (be I4ib day uf June 1994, 

CLIFFORD CHANCE 
3KI,\ldcregate Street 
LooJua ECIA <UJ 
Ret RWC 

Solicitors to die Gaapany 

N^oajisioriw 


IN THE MATTER Or 
JUB MINING PEC 
-and- 

IN THE MATTER OK 
THE COMPANIES ACT IP» 

Norte tv IS HEREBY GIVEN that a Vcitkm 
ns nteseolrd to Her Mijerey 1 * >l'S h 
Justice, Chmny Owruouoo DnlMiy I 1 *** •* 
the coufirmuuun ot Ibe rrducibu of «hme 
premium uonnl nf Ibe abuwe mokJ Ctomjmny 
by £4tyt«V'«. k . . 

AND NOTICE i» lunher girea that inr »•» 
Peliliun i* directed lo be heaid helnre Mr 
H*«tm Buttles ar M Royal CmuW ot 

inand. Umdna WCJA 2IJL <w WotocSdiy 

Unlday ot hoe 1*1*. 

Any Cicdilm or Siaieholdcr of At uni 
Company desiring W •*»»*< 

Otilrr h« the sunfiirnmiou ul the aab redoeaoo 
of shaic premium nocomu abtmW *P P <lf ^ 
lime of the hcatmg in permn tv by Coomel 

^ct^TrtK sskI Prlilion -ID be fanMnl lo 
any perjuwi trquitine the f 

mtdrrsnmilooed Sulk-ilnn un paymenl o 
RcfpiImJ cTuajpe tor rbr same. 

Dated the lath day ot Jone IVU. 

CLIFFORD CHANCT 
am AUmgare Siieet 
London ECIA 4fJ 
Ref KO 

SdheduBlu the Company _____ 




m G. £ Child & Son Ltd 

mxzxgz (In Administrative Receivership) 

mm Electrical Engineering Contractor 

The Joint Administrative Receivers offer for sale, on a going concern basis, 
the business And Assets of G. £ Child 3 Son limited electrical contractors 
^ operating in East Anglia. 

Key features include: 

™ ■ Annual lumovw in the region of £3 million 

iff • Well known King k Lynn company established in 1955 with 100 staff 

W * Established blue chip customer base 
F m Forward order book in the region of 12 million 

m Services range from design and installation to resting inspection and 
maintenance 

m Full service telemetry installers 
m BS5750Part 1 awarded March 1993 

For further information phase contact the )oini Administrative Receiver, 
Chris Hill or Jeanette Makings, Ernst & toting, Cambridge House. 26 Tombland, 
. Norwich NR3 1RH. Telephone: 0603 660482. Facsimile: 0603 614430. 

e!I Ernst&Young 

AoUtertsut by the fmcteria of CBurtarerf AaoamuwM In fiMbatf «mf HUav to curry ns Immm htMMm. 


STATE HOLDING COMPANY 


THE HUNGARIAN STATE HOLDING COMPANY LTD 

(AVRt) 

INVITATION TO TENDER 

The Hungarian State Holding Company Ltd (the "AVRt") announces a 
two-round open invitation to tender for the purchase of shares constituting 
75 per cent minus one share (nominal value HUF 1,289,990,000) of the 
registered capital (nominal value HUF 1,720,000,000) of Athenaeum 
Printinghouse Ltd ("Athenaeum"). AVRt, is to retain an interest of 25 per 
cent, plus one share (nominal value HUF 430,010,000) in Athenaeum. 
Athenaeum is one of the foremost printers of newspapers, magazines 
and books in Hungary. It operates from two sites in Budapest, the 
capital city. 

Bids are to be submitted personally or by proxy under closed cover 
without letterhead, in five copies, one of which should be marked as 
"EREDETT (original) in the Hungarian language, between 10.00 and 
12.00 mid-day on 2nd August, 1994 (the "Dosing Date"). The following 
text should be shown on the envelope: 

"Athenaeum Nyomda Rt. r£szv£nyert£kesit£si palyazat" 

(Bid for the purchase of shares of Athenaeum Printinghouse Ltd) 

Bids are to be submitted to: 

The Hungarian State Holding Company Ltd., 

Bank ban u. 17/b 2nd Floor Room 258, H-1115 Budapest, Hungary, 

Each bid will be received in the presence of a notary public who will issue 
a receipt in acknowledgement. 

The bid shall remain valid for a period of 90 days after the Dosing Date of 
the bid. 

Those wishing to take part in the bidding must sign a confidentiality 
agreement and obtain the document entitiled "Terms of Bidding and 
Information Memorandum", by making a payment of HUF 10,000 plus 
VAT for Hungarian parties, and USD 100 for other parties. 

AVRt. retains the right to deem any or all of the bids null and void 
Please contact: 



Market leader 

manufacturer of tubular steel towers 
and containers 


qualified staff 
modern facilities 
DM 46 million turnover 
highly competitive 
full order book 
direct access to highway 
and railroad 


1 00% shareholding for sale to financially 

strong investor 

For further information please fax to: +49 30 - 43 90 29 99 
(attention: Mr. Claudio Wieland). 


▲ Investment in Germany ▲ Investment in Germany ▲ Investment in Germany 


West Merchant Bank Limited 

or 

WestLB Investment (Hun gam) Rt 

33-36 Gracechuich Street 


BalassiB.u. 21-23. 

London EC3V0AX 


H-1Q55 Budapest 

United Ungdom 


Hungary 

Tel: (44) 71 220 8415/220 8401 


Tel: (36)1269 3803 

Fax: (44) 71 626 1610 


Fax: (36)1 1123036 

Allen don: Mr Michael Richardson 


Allen don: Dr. Zsolt Szalai 

Mr Alan Kirkpatrick 


Mr. Robert Gselovszki 


INVEST IN HUNGARY • A SAFE EXPANSION 


Acquisition Opportunity 

Profitable 
r— Insurance 

gZZT Company 

* Specialises in motor insurance 
m Distribution through some 2100 
appointed agents 

m Earned premiums £7.Bm {1992/93 1 
m before tax £0.7m f 1992/931 

mmm ■ Based in the North of England 
* further information please con- 

tact Buckley or Kevin Frishy, Ernst 

wSi&iw & Mxir ^’ Corporate finance. Barclays House, 

tlf ^ Fasf Parade Leeds LSI IHA. Telephone 

llllll 05)2 431221. Facsimile 0532 442241. 

wS HI Ernst&Young 

*— ■~ r -‘' l -‘fr l Hr fn-rlrnfr nf rr»r~f ‘Tnimriir lr fitiail 

amt Vtatra ta mry ar b n r wmuit t tuiul o rre. 

SOUTH AFRICAN 

MOTOR SPARES BUSINESS 
FOR SALE 

Solid family business in Johannesburg with a 
branch. Established 45 years, turnover ten million 
Rands p.a. Price six million Rands. 

House available. 

For further details reply - advertiser at 
Johannesburg Fax No. 01027/11/4852152 


Business for Sale 

The Directors of a highly successful Limited Company, based in the 
North of England, wish to retire arid are offering their Business for sale. 

The Company consists of eight retail Coffee Shop outlets, nith an 
annual turnover in excess of £2,500.000 showing Net Profit, before 
Directors Remunerations, in excess of £380,000. 

The Company owns valuable Investment Property and Patented 
Trade Marks and is ideal for Company or Franchise expansion. 

Enquiries for Principles only to Box No: B2917 Financial Times, 
One Southwark Bridge, London SE1 9UL 


fjjv- 

||||| 


FALKLAND SERVICES 
(SHEF FIEI JD ) LTD 

MARRIOTT BROTHERS 
(MO TOR E NGINEERS 
AND WELDERS) LTD 

The Joint Administrative Recovers aQer for 
sale die business and assets of the above 
companies which trade as a haulage contractor 
and as a pr o p erty holding company. 

Principal features include: 

■ Freehold industrial premises at Ecdesfidd, 
Sheffield of 22,000 square feet Qndudbg hard 
standing), fuHy kt on 15 year lease 

■ Fleer of 9 vehicles comprising 3 tractor 

units, 5 flatbed and 1 tautfmer nxnt 

■ Large stock of spare parts for Scddon 
Atkinson r n mmprrinl vehicles 

For further information contact the 
Joint Administrative Receivers - 
J H Priestley and B S Creber 


93 Queen Street. Sheffield. SI 1WF 
BH&aB&SSS Tet 0742 755033 Fax: 0742 768556 

8f f| Car Body Repairers 

The Joint Administrative Receivers, Edward V I 
Blackwell and Peter R. Copp, ofler for sale 
dif business and assets of H Markham Limited. 

♦ Established since 1928. 

♦ Located at leasehold premises in Reading, 
Berkshire. 

♦ Turnover {I Jm per management accounts to 
J1 Match 1994. 

♦ Approved repairers for 10 insurance companies. 

For limber information please contact, 

Edward Black we D or David Clements. 

Scoy Hayward, Bowman House, 

2/10 Bridge Street, Reading RG1 2LU. 

Telephone: 0734 585466 Facsimile: 0734 567782 
Reference: DC/MT/SS 

STOY HAYWARD 

.finiwiMNi) and Bnnuaf Advisers A member ot" Horwarh IncemationjE 

Authorised by 4159b nvu^-j 

rhe Institute ol 

Chartered Accuunuots uTstoy jrr 

iu En^btMl and Wales ■nrewi >■ 

wj carry on iriwstmetir business ft I3B7 S7il1 


Timber Fencing 
Supplies 

Established South Wales 
Timber Treatment, 
Supplier and Contracting 
Business. T/O £l-3m. 
Freehold Premises, 
Genuine Retirement Sale. 

PFM Ltd Fax: 0792 474112 
Alexandra House, 

1 Alexandra Road, 
Swansea SA1 5 ED 


WINDOW COMPANY 
In Southern England 
FOR SALE 

at very attractive price. 

• Large Customer Base 

• Long Established Business 

• Manufactures & installs 
UPVC + Aluminium 

• Excellent manufacturing 
facility 

• Tremendous growth potential 
Write to; Box No B2910. Financial 
Times, One Southwark Bridge. 
London SE1 9KL 


CONTRACTS & TENDERS 



US’ SAL E 


Appear in the Financial Times 
on Tuesdays, Fridays and Saturdays. 

For further information or to advertise 
in this section please contact 

Karl Loynton on 071 873 478 »ot 
L esley Sumner on 071 873 330S 


REPUBLIC OF GREECE 

MINISTRY OF TOURISM 

INVITATION TO PARTIES INTERESTED 
In the 

DEVELOPMENT OF CASINO ENTERPRISES IN GREECE 
(LAW 2206/94 GOV. GAZ. 62/20.4^4) 

All interested parties are invited to obtain Info r mation regarding the imminent invitation to tender for 
the grant of ten (10) casino licenses. The casinos are to be in accordance with international 
specifications and wH be accompanied by investments in the field of tourism which wifi extend to the 
entire country. 

The locations of the casino enterprises to be sstabfehed are the following: 

1. The County of Attika, at the Mont Pames location on Pamitha 

2. The County of Attika, outside the boundary Omits of the munidpaBtyof Athens. 

3. The County of Salonika, within a fifteen kilometre perimeter of Aristoteious Square, Salonika. 

4. The island of Crete. 

5. The island of Rhodes at the Hotel of the Ftoses. 

6. The island of Corfu. 

7. The Porto Canas hotel complex In the Cotffity erf HaJkkfld. 

8. The boundary Emits of the Municipality of Loutrald-Perahora. 

9. The County of Achala. 

10 . The Island of Syrus. 

The objective of the Invitation to tender is to establish casinos of high standard and to realise 
substantial investments that will benefit tourism In Greece and the national economy. The 
investments proposed by the candidates win be evaluated based on Uielr contribution to the 
development of tourism in the country, as wen as the upgrading of tourism in the areas where the 
casino enterprises wfll operate. 

The establishment of facilities and special projects involving the tourist infrastructure, which mil 
attract high dass tourism to Greece such as Convention Tourism, Winter Tourism and Maritime 
Tourism (Yachting), w9 be especially evaluated. 

Investors who wish to participafe in toe invitation to tender may obtain information at the address below: 

MINISTRY OF TOURISM 

COMMITTEE FOR THE INTERNATIONAL INVITATION TO TENDER 
FOR THE GRANT OF CASINO LICENSES 
2AMERHQSST. 

5th FLOOR • OFFICES 517-518 
105 64 • ATHENS • GREECE 
TEL 3221239 FAX: 3232605 


All Advertisement booking? are accepted subject to our current Terms and Conditions, copies of which are 
available by writing to The Advenisenien! Production Director, The Financial Times, 

One Southwark Bridge, London SE1 9HLTel: 071 873 3223 Roc 071 873 3064 


100+ LIVE 

Businesses for I 

sale and 

sales of assets fortnightly 

071 2821164 
Fax: 071 7063464 | 

FOR SALE 

Specialist concrete flooring design 
and con s truction company. 
Based North West, working nationally. 
T/O CS.Sm good order book. Owner* 
re&tng aratebte as CDnsuBante afler 

oomptettoa 

MfttsBax BS 941 , Fbanctal Times, 

One ikxihwarkQridga. London SEI BHL 


AQUATIC/ 

PET- RELATED PRODUCTS 

SdasfonHol national distributor 
and lelaBer otspeclaSst products. 

Very profitable with significant 
potential. Current owner seeking 
to retire after hand over period 

Write to Bcw No: B2930 Hnandd limes. 
One Southwark Bridoe. London SEI 9HL 


RECEIVERSHIPS/ LIQUIDATIONS 


LIGHTING 
Retail/Wholesale 
South Yorira. Retirement sale. 



SEMINARS 


Political Risks and Commercial Opportunities 

One Day Briefing Conference 
Covent Garden • London • 6 July 1994 

Important strategic briefing conference where foremost world 
specialists on these emerging regions and republics, from 
business, industiy, finance and government assess their current 
status, likely developments and future opportunities. 

Further information - phone +44 (0)923 778311 or fax the 
coupon to Westrade Fairs Ltd, 28 Church Street, 
Rickmansworth, Herts WD3 1DD, UK. 

O FAX OUR HOTLINE TODAY: +44 (0)923 776820 O 

(PLEASE PRJIvri 

Name /Job Tiilrr _ 

Company . 

Address: 


Showrooms on vey buay main 
road. Transitional support 
S120JXI0 ine. etock fixturM/Ettmgs. 

Wrto toBocNcc OS IB 
nnTuflwiiir rkiluirimlii'Tn 9HL 

MAGAZINE 
FOR SALE 

Profitable monthly trade magazine 
with considerable growth potential 
serving an esiabi&icd UK mukcL 
Enquire bi confidence to: 

Box NoB2924 Financial Tunes, One 
Southwark Bridge. L ondo n SEI 91 IL 


A unique insigiti 
from experts with 
unmatched credibility 
including: 


Kesier George, 

DTI Director. Central 
& Eastern Europe 

John Pendlebury, 
Partner, Coopers & 
Lybrand 

Ken Owen, 

Moscow Narodny 
Bank 

Marianne 

Afanasieva, 

Russian Industries 

Christopher 

Donnelly, 

Special Adviser to 
NATO Secretary 
General 

Anthony Bishop, 
Foreign Office 
Research Department 

Paul Beaver, 

Janets and CNN 


i 


I 







20 


BUSINESS AND THE LAW 


FINANCIAL TIMK: TL'KSDAY junk ia 19m 


Clearing the way for capital 


A t the first annual meeting 
of the European Bank for 
Reconstruction and Devel- 
opment in Budapest in 
April 1992, Mr Andre Newtnurg, the 
bank’s general counsel, raised a 
problem which was troubling inter- 
national banks involved in financ- 
ings in central and eastern Europe 
- how to take effective security 
over assets. 

A legal framework for secured 
transactions is essential to creating 
an investor friendly dimate so vital 
to the emerging and transitional 
market economies of central and 
eastern Europe. 

The absence of workable laws on 
secured transactions restricts the 
availability of finance Lenders will 
often only make funds available if 
payment is guaranteed by assets of 
the borrower. But most former com- 
munist states either do not have 
any rules on secured transactions 
or have to rdy on rules dating from 
pre-communist regimes of the 1930s. 

The EBRD dedded it had to take 
a lead. Under a former Lmklaters & 
Paines partner, Mr John Rhnpwwi 
and a German lawyer, Jan-Hendrik 
Rflver, it set up a Secured Transac- 
tions Project to draft a model law 
which could be used by these coun- 
tries to shape a legal framework for 

Secured Tending 

The brief was to produce some- 
thing which could interface with 
the current legal systems of these 
countries. Since most of these coun- 
tries’ legal systems have civil law 
origins, it was not possible simply 
to lift laws on secured lending from 
common law jurisdictions such as 
England and America. But, says Mr 
Simpson, the common law .systems 
seemed to offer the best features. 

"We had to produce quickly some- 
thing sufficiently sfmp ig to be of 
practical use which bridged the gap 
between common and civil law 
systems, but was not heavily influ- 
enced by any one system and which, 
could be adapted to their own law. 
Not so much a model as a tem- 
plate," he says. 

They were helped by an advisory 
board of 20 lawyers from 15 jurisdic- 
tions, five of than drawn from the 
framer communist countries. By the 
Bank's third annual meeting in St 
Petersburg in April this year the 
model was ready. 

The model law is based on the 
idea of a single se cur i ty right (a 
“charge") in respect of all types of 
thing s and rights. The distinction 
between various traditional types of 
security rights - such as pledges of 
moveables, pledges of rights and 
mortgages - is merged in one right 
A charge under the model is a 
property right and not a mere obli- ’ 


Robert Rice on a model law to provide the basis for 
workable secured lending regimes in eastern Europe 



security law similar to the model 
Busaa has already done so with its 
1982 pledge law, he says, and coun- 
tries like Kazakhstan, and Uzbeki- 
stan are showing interest 
The biggest resistance to the 
model is Hkrfy over systems of reg- 
istration and grfbrcement in gen- 
eral western countries prefer regis- 
tration to be a simple, low-cost 
adminis trative act. But in many of 
the civil law jurisdictions of the for- 
mer communist states such regis- 
tration systems as exist tend to be 
court bated - which means they are 
slow, cumbersome and costly. 


T 


Eastern European manufacturing desperately needs capital investment in new plant 


gation. It entitles the person receiv- 
ing security to enforce it by selling 
the thing s and rights talnan as secu- 
rity and gives preference over unse- 
cured creditors in insolvency pro- 
ceedings. 

The model is limited to securing 
business credits. There Is great flex- 
ibility over how the parties can 
define the debt or debts which are 
secured and the thing s and rights 
which are given as security. In both 
cases they can be described specifi- 
cally or generally, they can be pres- 
ent or future, and they nan change 
during the life of the charge. 

Under the mo del charges s h o uld 
be a matter of public knowledge, 
with publicity achieved by requir- 
ing registration in a separate 
charges registry. Enforcement relies 
mainly on self-help, with the person 
holding the charge being given 
broad rights to sell the charged 
p rope rly as he feels appropriate. 

To preserve the balance between 
creditor and debtor, however, the 
model gives a right to any inter- 
ested party to apply to a court for 
protection and claim damages from 
file person enforcing the charge fbr 
any loss suffered as a result of 
wrongful or abusive enforcement 

Where the charge covers all a 
commercial enterprise's assets 
there is a further remedy of selling 


the business as a going concern. 

The rules on the creation of 
charges introduces a general dis- 
tinction between registered charges, 
which have to be registered at the 
charges’ registry, possessory 
charges for which registration is 
not required but wbae the charge- 
hniifar fakpc an d mn«rt retain pos- 
session of the charged property, and 
unpaid vendors’ charges which pro- 
tect suppliers of goods who want to 
keep title to the goods. 

The model was generally well 
received in St Petersburg. But now 
Mr Simpson and Mr RAver must 
persuade the former communist 
countries to use ft. 

Mr Simpson is optimistic they 
wtlL Hungary and Poland have 
already drafted secured lending 
laws which draw heavily on the 
model. But there are concerns that 
some countries with strong civil 
law traditions will see it as too 
influenced by US and English 
systems and opt for models closer to 
their own traditions, such as Ger- 
many's and Austria's. 

Mr Simpson says it was never the 
EBRD’s intention to impose the 
model on the central and eastern 
European states, so it doesn't mat- 
ter if a country decides it wants to 
omit parts of it 

Although the new Hungarian col- 


lateral law draws on the model it 
departs from it in several respects. 
For example, it opts for a court-run 
registration system which can be 
slow and costly - something the 
model sought to avoid, ft also does 
not contain the model’s unpaid ven- 
dor’s charge designed to protect 
suppliers who want retention of 
title to their goods. 

“The Hungarians took the view 
that providing for retention of title 
was not a pressing need," Mr Simp- 
son says. “That doesn't worry us, 
because the important thing is that 
we are getting a law on secured 
transactions in Hungary. The 
unpaid vendor's charge can always 
be bolted on later." 

Mr Philip Wood, a partner in Lon- 
don-based international law firm 
Allen & Overy who sat on the advi- 
sory board, says that, although the 
model is very well thought out, it is 
bound to meet some resistance 
because “there is no doubt it is very 
pro-creditor". 

Where this approach conflicts 
with the pre-communist traditions 
of central European states, such as 
Bulgaria, the model is likely to hold 
few attractions. In central Asia, 
where many countries have only 
rudimentary secured lending laws 
or none at all, he thinks most will 
opt for a pro-creditor universal 


he registration system 
adopted in Russia under 
the 1992 pledge law is an 
example of what can go 
wrung, Mr Simpson says. Russia's 
system was based on the use of 
existing registries. But when parties 
came to register security interests 
they found many of these registries 
simply (fid not enst Moreover, the 
Russian law exacts a registration 
charge or stamp duty of 3 per cent 
of the value of the assets secured. 
“If the transaction involves a Slbn 
power project, that’s a big hit," he 
says. “It just shows that if you tax 
any part of the creation of a charge 
you will mate it unworkable." 

As a result, the EBRD has set out 
to produce a blueprint for a simple 
computerised registration system 
based on new charges registries set 
up specially for the purpose, which 
Mr Simpson is cmfafami will over- 
come these problems. The idea, he 
says, is to avoid the involvement of 
the courts so far as possible. 

Likewise with enforcement, he 
adds. The first thing every lender 
wants to know is how he can 
enforce the charge if things go 
wrong, in most former communist 
states enforcement is done through 
the courts. But the involvement of 
the courts at each stage of the 
enforcement process would be “crip- 
plingiy slow", he says. 

It is vital that the enforcement 
rules interface with local insolvency 
laws, but they also need to be flexi- 
ble enough to allow practical 
enforcement withoat court involve- 
ment, with the courts acting as long 
stop to protect the rights of the par- 
ties involved. 

Mr Simpson and Air Raver know 
the model will not provide sedations 
to all the problems of secured lend- 
ing in central and eastern Europe. 
They expect to meet strong resis- 
tance on such issues as enforcement 
and registration. Bui, used imagina- 
tively. it should provide the basis 
for workable secured lending 
regimes in the region and, as such, 
it is a teg step in the right direction. 


UK in breach on 
employee rights 



UK rules on the 
protection of 
employees’ rights 
in the event or 
companies chang- 
ing bands or when 
collective redun- 
dancies take place 
_ breached EC law. 

the European Court of Justice 
ruled last week. The Court said 
the UK had failed to implement 
frilly relevant EC directives. 

The directives related to the 
spfipgnftrrUng of employees' rights 
in the event of the transfer of a 
ba d ne ss or collective redundan- 
cies. Both placed a duty on 
employers to inform and consult 
representatives of workers 
affected by a transfer or redundan- 
cies. 

The European Commission took 
the UK to court for failure to 
implement them properly by not 
providing for the designation of 
employees' representatives in 
firms where the employer refused 
to recognise trade unions. 

The UK argued that employers 
who did not recognise trade 
nninns were not covered by the 
obligations in the directives 
because union recognition in com- 
panies was traditionally based on 
voluntary recognition. 

The Court did not accept that 
argument It said the aim of the 
directives was to ensure compara- 
ble protection for employees* 
rights in all member states and to 
harmonise the costs of such provi- 
sions for companies in the EC. To 
that end, the directives laid down 
compulsory obligations on 
employers regarding informing 
and consulting employees’ repre- 
sentatives. 

The Court found member states 
had no opportunities under the 
directives to restrict the rights of 
employees to those companies 
which under national laws were 
obliged to have union representa- 
tion. 

Although one of the directives 
specifically provided for situations 
in which companies did not have 
employees’ representatives, the 
Court said this provision should 
not be read in isolation and that 
its effect was to allow employees 
without such representation to be 
properly informed. 

The Court said it was not the 
intention of the Community legis- 
lature to allow the different legal 
systems within the EC to accept a 


situation in which no *mptoyew 
representatives were designate d 

since designation was necessary to 
ensure compliance with the obtt- 
.giiions laid down in the directive. ‘ 

The Court was not concerned 
either by the fact that the (Brxs 
fives did not contain specific pro* 
visions requiring member states 
to designate workers representa- 
tives if there were none. 

The directives required member 
stales to take all the maadunt 
necessary to ensure employees 
were informed and consulted 
through their representative# In 
the event of either a transfer or 
collective redundancies. That obli- 
gation did not require there to be 
specific provisions on the designa- 
tion of employees' representattvw. 

Two further claims were made 
by the Commission. The first was 
that UK rules only required the 
employer to consult with the 
employees’ representatives, to 
take into consideration what was 
said, to reply and give reasons If 
the representations were rejected. 
The obligation under Urn direc- 
tives was to consult representa- 
tives with a view to seeking agree- 
ment. The UK conceded its rules 
did not provide for this. 

The second claim was that the 
sanctions provided for in the 
national rules for failure to com- 
ply with the obligations to consult 
and inform were not it sufficient 
deterrent for employers. 

Under the UK rules any compen- 
sation which an employer might 
have to pay could be set off 
against any' amounts required to 
be paid to the employees. 

The Court said where a Commu- 
nity directive did hot specifically 
provide any penalty for an 
infringement, or where it referred 
for that purpose to national laws, 
the obligations of the member 
states under the Rome treaty were 
to require them to ensure infringe- 
ments of EC law were penalised 
under conditions, both procedural 
and substantive, which were anal- 
ogous to thuse applicable to 
infringements of national law of a 
similar nature and Importance 
and which, in any event, made the 
penalty effective, proportionate 
and dissuasive. The UK had felled 
to do that. 

C-38H92 and 383192: Commission 
vVK.BC J PC. June 8 1994. 

BRICK COURT CHAMBERS, 
BRUSSELS 


On Friday, June 17 
the World Cup starts 
in the USA. 

And here. 


PEOPLE 


in 

Q 

o 

£ 

S 

H 

£ 

U 

£ 

< 

z 

< 


WORLD CUP 


Footba 1 1 


4$: 

4 

/ ■•’i* 





On Friday, June 17 the Financial Times, in conjunction with Opel, will publish 
a 24 page, colour guide to the 1994 World Cup. It will examine how the 
tournament is organised with an overview of each of the six groups. 

It will highlight individual players to watch, take a look at football’s 
emerging nations and give an up to the minute view of the development of this 
sport in the USA. 


Millionaire moves on from 
Fine Decor to find more fun 


Mark Bates, 35, is a finance 
director in a hurry. Only a 
year after he helped Fine 
Decor, the fast-growing wall 
coverings group, get its shares 
listed on the stock market, he 
wants a bigger challenge. 

Bates, who had worked as a 
management consultant, joined 
Fine Decor in 1990 following a 
management buy-out. “I 
started with 40 bin bags 
cleaning out the contents of 
the -old chief accountant’s 
office," says Bates, who took 
no holiday in his first year 
with the company and worked 


every weekend. 

Since then. Fine Decor has 
been transformed from a frag- 
ile MBO to a successful com- 
pany with its shares listed on 
the stock exchange, and 
although Bates has been well 
rewarded - he's a millionaire - 
he feels that the job of being 
finance director is no longer 
such fun. He leaves the com- 
pany In August so that he can 
devote hims elf to “looking for 
a major challenge to stretch 
me to the maximum”. 

Harry Morgan, Fine Decor's 
chief executive, describes 


Bates' decision to quit as a 
“meeting of minds". Bates was 
not a “wallpaper man" and 
was somewhat younger than 
tire rest of the executive team. 

David Timmins, 41, finance 
director of North amber, the 
loss-making supplier of com 
puter hardware and software, 
takes over from Bates. Nearly 
half of Fine Decor's safes are 
overseas and T immins has 
been hired partly for ids over- 
seas experience. Before Nor- 
thamber, he worked Cor Micro- 
polis Corp and Matchbox Toys 
in the US and Germany. 



Proof that a good sales 
technique does work - some- 
times. Nick Carter, 32, has just 
been made managing director 
of Crosby Homes (North West), 
part of tiie Berkeley Group. 

Not that he has much back- 
ground in buying land and 
housebuilding, bat his sales 
technique so impressed Tony 
Pidgley, chief executive and 
Joint founder of the Berkeley 
Group that Pidgley offered 
him a job. 

Up till then Carter - a grad- 
uate of Leeds University with 
a degree in design and technol- 
ogy - bad been selling Porsche 
cars at a Guildford showroom, 
a number of them to Pidgley 
and his family. Carter took a 
job as a land buyer for Crosby 
Homes, climbing the rungs 
until he became the land direc- 
tor for the north west 

Carter takes over in the 
north west from David Jack- 
son, 50, the longest-serving 
member of the Berkeley 
Group, who has been 
appointed managing director 
of Crosby Homes (Midlands). 
He in turn takes over from 
Geoff Hutchinson (above), 35, 
who becomes managing direc- 
tor of Crosby Homes group, 
the wholly-owned subsidiary 
of tiie Berkeley Group. 


Jerry O'Mahony 

The Ladbroke group 
announced yesterday that 
Jerry O’Mahony, vice chair- 
man and financial director, 
died at the weekend. He was 47 
and had been ill since Febru- 
ary. David Wilson of Ernst & 
Young, Ladbroke’s auditors, 
has been standing in as tempo- 
rary finance director and will 
continue in this position for 
the time being. 

O'Mahony, a Londoner, 
joined Ladbroke in 1980 as 
group financial controller after 
working for a range of energy, 
financial and industrial compa- 
nies. He was appointed to the 
Ladbroke board in 1986, 
became group finance director 
in 1987 and vice chairman in 
1990. He leaves a widow and 
five children. 


Departures 

■ Alan Ben, chief executive 
of the kitchen division and 
a director of SPRING RAM, 
has resigned. 

■ Michael Darnell hag retired 
as an executive director of 
Tesoo. 

■ Sir Robert Clark has retired 
from SHELL TRANSPORT. 

■ Peter Rawlins, group 
finance director of TUNSTALL, 
is resigning. 

■ Willia m Wh ite, ceo of 
AUTOMATED SECURITY 
HOLDINGS USA, has retired 
to pursue other interests. 

■ Alan Shearer has resigned 
from the board of ENGLISH 
CHINA CLAYS following the 
demerger of CAMAS. 

■ John Cote has resigned as 
a director of TRANSPORT 
DEVELOPMENT GROUP. 


■ Richard Rosenborg, 
assistant treasurer for Exxon, 
has been appointed executive 
director finance for Esso UK; 
he succeeds James Alcock who 
becomes assistant controller 
for Exxon in Dallas. 

■ Jonathan Leslie has been 
appointed to the board of RTZ. 

■ Stephen White, formerly 
group vice-president Europe/ 
Canada of McGraw-Hill's 
professional publishing group, 
has been appointed group md 
THOMSON CORPORATION 
Publishing’s legal & 
professional division. 

■ David Mortimer, md and 
ceo of TNT Ltd, who has been 
joint c hairman of GD 
EXPRESS WORLDWIDE, is 
appointed sole chairman on 
the retirement of his 
co-chairman Klaus Zmnwinkel 
who will remain a member 

of the supervisory board. 

■ Bernard Spring, formerly 
sales and marketing director 


of Hfflsdown Chilled Foods, 
has been appointed md of 
Tiffany Sharwood’s Frozen 
Foods, part of RHM. 

■ Brian Durkin has been 
promoted to md of MANDERS 
(HI Inks. 

■ Geoff Purdy has been 
appointed group buying 
director of T&S STORES. 

■ James Lancaster (below left) 
has been appointed chairman 
and chief executive of 
GALLAHER Re tailing 

■ Steve Tbeede (below right) 
md marketing, has been 
appointed group rad and ceo 
of CONOCO on the retirement 
of Terry Moore. 



Non-executive 

directors 

Sr Clifford Ghetwood has been 
appointed chairman or Broad- 
gate Properties, following the 
death of Lord Sharp of Grims- 
dyke last month. 

Sir Clifford has been a non- 
executive director of Broad- 
gate Properties since Jane 
1993. He is a former chairman 
of George Wimpey and is cur- 
rently chairman of the Con- 
struction Industry Training 
Board and Chetwood Associ- 
ates (Architects). 

Broadgate Properties owns 
six buildings in tiie Broadgate 
Development as well as the 
600,000 sq ft Ludgate Develop- 
ment on the Western edge of 
the City of London. The prop- 
erties have attracted interest 
from a number of potential 
purchasers including British 
Land, a company beaded by 
John Ritblat. It recently 
acquired a 29 per cent stake in 
Stanhope, a troubled property 
company that owns half of 
Broadgate Properties. 

■ Paul Sanders, a corporate 
ba nking director of Lloyds 
Bank, at WAGON FINANCE, 
part of MAL 

■ Michael Doherty has 
resigned from ANDREWS 
SYKES GROUP. 

■ Hugh Runctman has retired 
as chairman of SCOTTISH 
EASTERN INVESTMENT 
TRUST. 

■ Masam itsn Sakunti at 
GESTETNBR HOLDINGS; 

Rynla Anraku has resigned. 

■ Lord William Rees-Mogg as 
ajmrman at INTERNATIONAL 
BUSINESS 
COMMUNICATIONS 
(HOLDINGS). 

■ Anthony Fry. a director of N 
M Rothschild, at SOUTHERN 
WATER. 

■ Mhrk Aynsley Smith at 
BRADFORD & BINGLEY 
BUILDING SOCIETY. 

* Derek Mather has retired 
from CRQDA 
INTERNATIONAL 

■ Anna Vinton has resigned 

holding^ & S0UTHKRN 

? ^ Bdbert Clark tan retired 
from SHELL TRANSPORT & 

toading company. 

■ ****■ Preset of 

the RW Johnson 
Pharmaceutical Research 
Institute, at CANTAB 

pharmaceuticals. 

■ Ian Buckley, former head of 

corporate finance at Carr 
KJtaat & Aitken. at SELECTV. 
*$*1 *** reigned from 

■ John Jones has resigned 
from PASCOE's GROUP. 




21 





financial times Tuesday june 14 1994 



The acceptable face 

xi , . 

avant 


ARTS 


J -G. West's elegant pavilion in 
Kensington Garde n s jg ^ 
60 years old. It was designed 
^ a tea room but served its 
thirsty public tor barely half 
its life. It then lay empty and 
redundant until, in an uncharacter- 
istic fit of inspiration, the bureau- 
CTaaes responsible tor public order 
m the Royal Parks fixed upon a new 
use for it as a gallery tor contempo- 

raiy art Under the aegis of the Arts 

Council, it re-opened in 1970, at first 
only for the summer month* its 
scope may have been extended , its 
facilities improved, its indepen- 
dence under its own trustees at last 
established, but, with its ample day- 
light and its long windows op ening 
out on to the park, it is still as 
pretty and effective a gallery as it is 
possible to imagfwA 
What it has done with its privi- 
leged opportunity over the years is 
another matter. A careful reader of 
this column will know, for wramp to 
that I was not too keen on the show 
that Damien Hirst put together only 
last month, and was less than 
impressed by recent offerings from 
Robert Gober or the Barclays 
Young Artists Awards. Only lately 
a minor government minister, f| p p 
Mr Chope, called for the place to be 
closed down and turned into sta- 
bles. 

As a temporary work of installa- 
tion art, such a proposal might have 
its merits - as even I, or young Mr 
Hirst perhaps, can see: but really it 
goes too tor. 'Hie fact is that contro- 
versy or no controversy, the Serpen- 
tine now attracts some 200,000 visi- 
tors a year, which by any measure 
is remarkable for a gallery of its 
size. It is in the nature of the exer- 
cise that the more problematical or 
outre the exhibition, the more scan- 
dalised will be the attention it 
attracts, especially in this country, 
where we are suspicious en p o gh of 
art of any kind, let alone Modem 
Art shock, shudder. Picasso an bid 
fraud and all that 
The Serpentine’s great virtue is 
that, with its dean, open galleries 


and natural light, it can show work 
of any kind to its best advantage. 
The d anger is that if the good can 
be made to look so marvellous, so 
the inept may seem acceptable, tine 
banal interesting, the trivial signifi- 
cant 

It is all a matter of emphasis, and 
if the Serpentine's programme 
seems suddenly to have too narrow 
a focus and, at the expense of qual- 
ity, become too bound up with sup- 
posed innovation and all the self- 
mystifying, self-justifying blather of 
the avanbgarde, then it is no more 
than reasonable for the critic to say 
so. What is not reasonable is to 

With some relief, 
William Tucker 
finds contemporary 
painting alive 
and well at the 
Serpentine Gallery 


offer the jackboot’s answer to 
“Degenerate Art”: dose it down and 
kick it out of sight. 

But the Serpentine may 
legitimately defend itself on its 
record overall, saying that to notice 
only what is controversial in its 
programme is itself a distortion. 
The point is made and up to a 
point, taken by its current show of 
British painting . It is well rfimwi 
and beautifully bung , giving us a 
single and typical work by 35 
artists, most of whom have been 
shown at the gallery one way or 
another over the years. The is 
a little misleading, for while all 
these artists worked on after 1970, 
and much of the work is very new, 
the actual examples of one or two of 
the artists were done long before - 
the Nicholson, indeed, dating from 
1929. 

But this is to quibble. As a show 
it does two useful things. First, it 


clearly demonstrates that for all the 
talk of the irrelevance, if not the 
actual death cf painting, its practice 
1ms continued throughout its period 
Within tim ra m n wifw¥fl g ; 

abstract and figurative, apparently 
lively and in good health. And it 
follows from this that far from 
working in a critical vacuum 
alongside their conceptualist and 
installationist contemporaries, 
younger painters such as T,i*a 
Milroy, Ian Davenport and Fiona 
Rae may now be seen within a 
broader context and a richer 
tradition. Certainly their work 
appears the stronger for it. seen 
sow to such company as Patrick 
Caulfield, Bridget Riley, Prunella 
Clough, John Hoy land or Gillian 
Ayres. 

It is not true of all of them. Tony 
Bevan, for example, can hardly live 
with Freud or Auerbach, and Mark 
WaHinger and Richard Hamilton 
maTtft a pair for triviality 
pretension. But the gallery is. for 
the most part, foil of st rong ami 
beautiful things - Victor willing's 
odd flapping suit of clothes, like 
a suspended carcass, holding its 
own with Francis Bacon’s seated 
figure; a deceptively simple and 
expansive Howard Hodgkin; good 
things from Paula Rego, Albert 
Irvin, Adrian Berg, Lucian Freud, 
Terry Frost and many more. Take 
your pick. Most beautiful of all is 
the large, new Prunella Clough, 
with its dark, smoky surfaces and 
striated stacks. 

But for all these good and positive 
tilings, than is yet one caoeat to 
enter. To go through this work is 
stiff to register a sense of the 
official, or at least established, art 
of its period. This show offers us 
the accepted face of modem 
painting, the face that fits. The 
Serpentine's avant-garde credentials 

are SB fp nnnng h 

Hen and Now. TWttdi painters at 
tiie Serpentine Gallery from 1970 to 
the present. Serpentine Gallery, 
Kens ing ton Gardens W2. 


me rouceman s naapier, i»7, uy rama j&ego 


T he Duke of Edinburgh’s lat- 
est views on poverty add a 
certain piquancy to the 
coupling of the two plays 
r unning in tande m at the Royal 
Court for the summer. At first 
glance the pairing of Jim Car- 
tright’s Bond and Sue Townsend’s 
The Queen and 4 under the the- 
matic yoke of deprivation -and 
wasted lives, looks tenuous. Each 
work is so stylised, so individual, 
that the association seems as artifi- 
cial as lumping together Eng Lear 
and Sun for Your Wife as a joint 
exploration of troubled family rela- 
tionships. 

The director is Max Stafford-dark 
(whose new company. Out of Joint, 
has been touring the plays as its 
first venture); his theatrical 
strengths mcfmfe intellectual clar- 
ity and robust didacticism rather 
than warmth or humour. Despite 
avowed aims at a new populist audi- 
ence, the resultant work seems 
aimed at the twittering classes, 
lazily stereotyping the monarchy 
with the same semi-informed ease 
with which they distance them- 
selves behind barriers of correct- 
sounding clicbfi from poverty and 
injustice. Pretty much the tradi- 
tional audience for the Royal Court, 
to fact, a theatre which Stafford- 
dark has officially left but which 
obviously still exerts a strong hold. 

The FT was the first paper to 
recognise the flirfliftig potential of 
Road to 1986. A riveting promenade 
production by Simon Curtis con- 
ducted the fearfully hypnotised 
spectators through a nightmare 
danse macabre down mean streets 
of hopeless squalor. The mad, 
«itgh »y threatening narrator in this 


Theatre/Martin Hoyle 

Strange bedfellows 
at the Royal Court 


Under MQk Wood of urban derelic- 
tion was Edward Tudor Pole. Now 
Toby Salaman buttonholes us with 
an avuncular twinkle, less a gim- 
let-eyed ancient mariner than 
another boring wedding-guest. 

The conventional proscenium- 
arch production adds an air of con- 
trivance that makes Caitright’s 
honed obscenities and lyrical 
lamaits sound ar tificial Same ele- 
ments of the play have dated: 
escape is found in drink and 
a tte mpted sex - little emphasis on 
drugs. But then the accent was 
always on adults, aware of the emp- 
tiness flytt faced thorn , rather than 
kidS Stiff finding r mt, 

The production romps towards 
cumulative impact, not high-pitched 
intensity. It misses out tm subtlety, 
and therefore a dimension that 
stops us patronising these losers. 
Besides compassion, its obverse, 
disgust, is present, notably in its 
depiction of sex as either ugly clum- 
siness or manipulative power-play. 
The performance is summed up % 
the scene where bosomy Pam Fer- 
ris, hugely blowsy, clambers over 
an insensibly drunken young sol- 
dier who stirs only to vomit, while 
she pretends that he Is sectoring her 
(“So young . . . Why should you 
choose me?”). Hilarious physical 
comedy, but a world away from the 


quiet, faded desperation that made 
it the most moving ™mwt of the 
original production. 

+ 

That Staff ordrdaik has little time 
for pathos is illustrated also by his 
direction of The Queen and 4 drawn 
from Sue Townsend's best-seller. 
Theare has reportedly been rewriting 
on tour; certainly it seems less 
enjoyable than the Leicester premi- 
ere reviewed here to April by Alas- 
tair M a c a ul ay. As everyone must 
know by now, the brilliant fantasy 
exiles the royal family to a deprived 
inner-city estate to a newly republi- 
can Britain. The book showed affec- 
tion as well as satire; tire stage ver- 
sion hedges its bets by giving a call 
to action, in the form of an alterna- 
tive Christmas speech, to the Queen 
herself; but what was warm-hearted 
to the book seems mere opportun- 
ism on stage. 

Royalists will find little offensive 
here, possibly because some of the 
royal impersonations are so inept 
Carole Hayman’s Princess Margaret 
sounds like Margaret Thatcher and 
looks like Judith Anderson playing 
Mrs Danvers to Rebecca. Out of con- 
text, David Howey’s Prince Philip 
would be OTtidenHfiflhlp Gillian 
Harma is at sea with the Queen 
Mother. On the other band, Doan 
MadMnn suggests the Diana 


stoop, slyness and general cha- 
risma. Toby Salaman uses a hamper 
to make-up to tr ansfo rm his face 
into a Prince Charles carnival 
mask, and suggests the right 
ang uished, teeth-deuched decency. 

Touching np jthar fop fifth-form 
iconoclasm to Haoe I Got News for 
You nor the juvenile v e nom to Spit- 
ting Image, the writing nevertheless 
shows a jumble to styles, from com- 
ic-strip zaniness to the old-fash- 
ioned agitprop theatre that my com- 
panion greeted with a sigh of 
exasperated nostalgia when the 
Queen and her new neighbours had 
a final sing-song about necessary 
change. I suspected the worst when 
1 heard that the company had been 
getting the feel to a Leicester coun- 
cil estate - about as relevant to 
comedy as those studies of Jaco- 
bean Scotland by American divas 
who think it will help them to sing 
Luda di L amme rmoor. But as if to 
prove he is no dry, po-faced old 
stick, the director has interpolated 
unnecessary songs, adding to the 
impression that a vaguely Brechl- 
ian history epic was aimed at. 
indeed, the Good Woman to Sze- 
chuan is virtually quoted verbatim 
by the tough estate-leader, VL “It 
ain’t possible to be honest and 
poor." 

There are certainly funny pas- 
sages: the women’s assertiveness 
class, the Queen and Di participat- 
ing. is a lovely idea. All credit to 
Pam Ferris, who looks nothing like 
her but manages a likable portrait 
of HM as a woman rather delight- 
edly kicking over the traces and 
discovering hersell But without the 
entertainment value to the book, 
there is no dear message either. 


Dance/Sophie Congtgnti 

De Keersmaeker’s ‘Toccata’ 


I n 1988 the American choreog- 
rapher, Mark Morris, moved to 
Belgium where he and his 
dance group were to spend 
three predictably-controversial 
years in residence at Brussels’ 
Theatre Royal de la Momude. Now, 
his successor at the Monnaie, Flem- 
ish dancemaker, Anne Teresa De 
Keerstnaeker, appears to be in the 
throes to a similar creative high. 
Her latest work. Toccata, presented 
at the QEH as part to The Turning 
World festival, is more solidly 
authoritative mid eloquent than 
anything she has shown previously 
in Britain over the past decade. 

Performed by Rosas, the ensemble 
which takes its wamp from one to 
De Keersmaeker’s earliest works, 
Toccata is a pp ffiirad marriage to 
music and dance in which each 
form reveals and accentuates essen- 
tial qualities of the other. While 
music has always been the driving 
force behind her choreography, De 
Keersmaeker assiduously spurns 
any easy relationship between aural 
and physical action. Her signature 
piece, Rosas Danst Rosas, was a 
t rannkgmt XU mythwqfttirad- 

ly-layered gesture which slashed 
against the music of Thierry De 
Mey and Peter Vermeersh. And in 
its repetitive sequences, pared-down 
motifs and stylistic rigour, it proved 
a blueprint for much to her subse- 
quent work. 

De Reersmaeker's ability to take 
absolute control of the way in 
which, she wants music and dance 


to interact has led to a reputation 
for cold formalism. But Toccata 
shows her buoyed by a series to 
contrasting piano pieces by J.S. 
Bach; she quietly engages with, 
rather than answers, each to these 
scores in movement ter ms. 

The work opens with pianist, Jos 
van Immersed, playing the toccata 
(BWV914) of the title. Behind him. a 
raised, angular platform slopes 
down to one side. On this huge 
catwalk the five performers (one 
man, four women) absorb the music 
and respond to it in carefully-mea- 
sured phrases. We watch a woman 
lifting her arms and sha ping tonm 
into a perfect oval. And through 
tins single action, soberly academic 
yet dazaitag and poignant in effect, 
De Keersmaeker invokes an atmo- 
sphere to hushed concentration, giv- 
ing us the first In a stream of 
imagpq which cleanse the mind and 
sharpen the eye. 

In the central section, a lighter 
mood prevails as a two-women, 
one-man team play with the French 
Suite's affemande, gavotte and sara- 
bande. Nothing in De Keersmaeh- 
er'3 writing is gratuitous, excessive 
or hackneyed. Likewise, her danc- 
ers address the business to rhythm, 
locomotion and sculpture without 
saHing-out to the emotive qualities 
of Bach’s music. 

The Turning World festival at the 
QEH continues with Wim Vandek- 
eybus today and tomorrow (Box 
Office: 071-928-8800) 


Opera 

Domingo's 

noble 

savage 

I n the Bonn Opera programme 
for Antonio Carlos Gomes’s fl 
Guarany (The Guarani), there 
is a photograph of Mario del 
Monaco, bronzed and nak ed except 
for a loin-cloth, taken in 1949 when 
he sang the title role in Rio de 
Janeiro. Del Monaco ’s enthusiasm 
for this four-act opera-hallo was 
such that his son vowed to make It 
more widely known. Now intendant 
in Bonn, Gian-Carlo del Monaco 
has realised his boyhood dream. He 
persuaded Placido Domingo to 
learn the part his father had sung, 
brought in Sony to record it, and 
has helped illuminate a neglected 
corner of X9th century repertoire. 

The first Brazilian composer to 
achieve international feme. Gomes 
(1836-96) won a government schol- 
arship to study in Mfian. ft Guor- 
any bad a triumphant premiere at 
La Scala fra 1870 and performances 
followed in Rio, London and New 
Fork. 

As tiie descendant of a Guarani 
Indian, Gomes was naturally 
drawn to Josl de Alancaris love 
story to 16th century colonial Bra- 
zil. The chief characters are Peri, a 
Guarani Indian, ami (VciHa , daugh- 
ter of a Portuguese nobleman. 
Their love flourishes despite the 
prejudice to her father, the treach- 
ery of her Spanish admirer Gon- 
zales and a running conflict with 
the cannibal Aymorfi Indians, in a 
utopian ending. Peri and Cecilia 
alone survive to found a lineage 
which will reconcile Indians and 
colonial incomers. 

Since the 1930s U Guarany has 
enjoyed the status of a Brazilian 
national opera - but apart from the 
setting, there is nothing Brazilian 
about it. With a long ballet (heavily 
cut in Bonn), static choral tableaux 
and an Italian libretto, it mixes 
grand operatic style with the 
melodic verve of early Verdi. 
Gomes gives the same ltalianate 
colouring to tiie natives as he does 
to the Europeans, and is unable to 
hide a patchwork quality. The 
work’s appeal lies in its exotic jun- 
gle location and the opportunities 
it provides for beautiful singing. 

The idea to inviting Werner Her- 
zog to stage the German premiere 
had a superficial logic - ins film 
Fitzcarraldo is also set in the Ama- 
zonian jungle. However, Herzog 
has yet to reveal htmself as a natu- 
ral theatre man. His production, 
designed by Haurixio Balo and 
Franz Bltnnauer, unfolded within a 
cavernous frame of rampant under- 
growth, and updated the setting to 
the early 19th century. The action 
was static, the choreography 
lamentable. On the positive side, a 
complicated plot came over dearly, 
and the singers held centre-stage. 

As Peri, Donringo joins a distin- 
guished line of Interpreters includ- 
ing Gigli. And this was vintage 
Domingo, singing in the language 
and style that suit him best Unre- 
cognisable behind Indian feathered 
head-dress and facial markings, his 
noble savage was thoroughly 
believable. The part taps his lyrical 
and heroic strengths, and found 
him in full, fluent voice. 

Gomes hands all the display arias 
to the soprano, sung here with 
clean and gracious aplomb by 
Veronica VlffaroeL Carlos Alvarez's 
Gonzales was a lyric baritone of 
nnmiirfiikah te class. Chorus and 
co m primarios were good, but the 
orchestral playing under John 
Neschling was dull. I enjoyed R 
Guarany. Within the limits of Its 
style, it has charm and vitality. 
Anil thanks to Domingo, the Bonn 
performances had the atmosphere 
of a real operatic occasion. 

Andrew Clark 


Last Domingo performance tonight 



1 International \ 

1 A l 

ARJ 

rs 

Gun 

_}JB 


AMSTERDAM 

ncartgebotn* Tonight: Riccardo 
a By conducts Asko Ensemble 
vortes by Rihm, None, 
ncesconi. Stravinsky and Vareea, 
ti piano soloist Jean- Yves 
baudet Fri, Sat, Sun afternoon: 
tmut Haenchon conducts 
hortands Philharmonic Orchestra 
iszt and Mozart, vio,in 
>jst Frank Peter Zunmermann. 

; afternoon: Edo de Waart 
iducts Radio Philharmonic 
ihestra and Chores in concert 
formance of Chausson’s Le roi 
tus (24-hour information service 
M»75 4411 ticket reservations 
1-671 8345) 

zteJctheater Tomorrow: first rugm 

Xrtch National Ballet's new 
«d bill, with choreographies! by 
S van Dan trig, Toer vanSehayk 
[ Hans van Manen (repeated June 
18. 20, 21). Ttiurs, Swi, next 
d and Fri: Riccardo Chaflly 
iducts LIlbs Pasquafs 
heriands Opera production ^ 
staff, with cast headed by Bruno 
tied (020-625 5455) 
itMchMiwliuv Fri: wona 


premiers of Guts Janssen’s new 
chamber opera Noach, conducted 
by Lucas Vis and staged by Pierre 
Auto. Repeated June 18, 19, 20, 

21 (070-320 2500) 

• Many of the above events form 
part of this year's HoBand Festival, 
which continues fiS Jime 30. For 
taformation and tickets about other 
festival events, contact Netherlands 
Reservations Centre: tel 070-320 
2500 fax 070-320 2811. 


■ ANTWERP 

da Vteamse Opera Tonight Stefan 
Sottesz conducts fast night of 
Petrita Ionesco’s production of Die 

Redermaus, with cast headed by 
John Hurst end Cynthia Lawrence. 
Repeated June 17, 19, 21, 25 
(03-233 6685) 


■ BASLE 

The highlight of this month’s 
programme to the Stadtthetoer is 
Herbert Wernicke’s new production 
of Handel’s Theodora, sung in 
English by a cast headed by Sonia 
Theodoridou, Hedwig Fassbander 
and Christoph Homberger (June 
15, 18, 21, 25 and 26). Repertory 
also includes Donizetti's La Favorite 
and Youri Vamos' production of 
Sleeping Beauty (061-285 1133) 


■ BRUSSELS 

Palais des Beaux Arts Tonight 

(Conservatoire): Undsay Quartet 

plays works tty Piaoell, Tippett and 
Beethoven, Tomorrow 
(Conservatoire): Remhard Goebel 
conducts Musics Antfqua Kton in 
works tty BSrer, Schmefeer and 
others. Thors: William Christie ■ 


conducts Las Arts Rorissants in 
Rameau and others. Fri: Philippe 
Herreweghe conducts Orchestra 
des Champe-Bysdes in Beethoven, 
Betooz and Mendelssohn, with 
soprano Lorraine Hunt. Sun, next 
Wed: Antonio Pappano conducts 
Orchestra mid Chorus of foe 
Monnaie in Mendelssohn’s BQah, 
with soloists Including Keith Lewis 
and Jose van Dam (02-507 8200) 
Monnaie Tonight, Fri (also June 
21, 23, 26, 29): Antonio Pappano 
conducts Kart-Emst and Ursel 
Herrmann’s production to La 
frariata, with cast headed by 
Efcdbieta Szmytka. Laurence Dale 
and Victor Ledbetter (02-218 1211) 


■ CHICAGO 

RAVMIA FESTIVAL 
The 1994 festival opens on Thure 
with a week of jazz and popular 
concerts featuring the Count Baste 
O rchestra, Dave Brubeck Quartet, 
Mel Tonne, Cteo Lame, Wynton 
Marsalis Septet, Ray Charles and 
Dionne Warwick. The Vermeer 
Quartet gives the first classical 
music concert on June 23, and the 
Chicago Symphony Orchestra 
begins its annual residency the 
following day with the first of six 
concerts conducted tty Christoph 
Eschenbach. Guest conductors and 
soloists appearing at the festival 
this year include Semyon Bychkov, 
Riccardo Chailiy, Eri Was, Piaddo 
Domingo, Hermann Prey. Thomas 
Hampson, Alicia de Larrocha, Itzhak 
Perlman, Pinchas Zukerman, Gidon 
Kramer, Midori and Yo Yo Ma. The 
festival runs t3I August 28. Situated 
in Hghland Park, Ravins is easily 
accessible to World Cup viators 
and I n ternational travellers via public 


transport from downtown Chicago. 
To order tickets by phone, cafl 
312-ravirea. Outside the metropolitan 
Chicago area, caB 1-800-433-8819. 
Tickets can be ordered by fax 24 
hours a day: 708-433 4582. 


■ GENEVA 

The final production to the season 
to the Grand ThGfltre is Lohengrin, 
staged tty Robert Careen and 
conducted by Christian Thielemann, 
with a cast headed by Thomas 
Moser, Hartmut Welker. Eva 
Johansson and Marilyn Zfcchau. 
This week's performances are 
tonight and Fri, repeated June 20, 
24. 27 and 30. Teresa Berg anza 
gives a song recital tomorrow 
(022-311 2311) 


■ THE HAGUE 

Dr Anton Pfdfoszato Sat Yevgeny 
Svetianov conducts Hague 
Philharmonic Orchestra in 
Bruckner's Eighth Symphony 
(070-360 9810) 


■ VIENNA 

STAATSOPER 

A new production to frtindemith’s 
Cardiac, staged tty Marco Artuo 
■Mareffi and conducted by Utf 
Schknwr, can be seen on Fri and - 
next Mon, with Franz Gruufteber 
In the tide role. Repertory also 
includes La boheme tonight with 
NeS Shscoff as Rodolfo, Ariadne 
auf Naxos tomorrow and Sun, Don 
Carlo on Thus with Luis Lima. 
Vladimir Chernov and Aprils MrDo, 
and Siegfried on Sat with Gabriele 
Schnaut Siegfried Jerusalem and 
James Morris. Riccardo Muti 


conducts Le rrazzs di Figaro on 
June 21, 24 and 28, with Bryn Terfel 
as Figaro. Luciano Pavarotti sings 
in Tosca on June 27 and 30 (51444 
2955) 

CONCERTS 

This week’s highlight is a choral 
concert on Sun to the Musikvereln 
featuring the Orchestra to the Age 
to Enlightenment conducted by 
Bruno Weil (505 8190). Friedrich 
Gulda Is director and solo pianist 
with foe Vienna Symphony 
Orchestra In a Gulda and Beethoven 

programme next Mon and Toes 
at the Konzerthaus (712 1211) 
THEATRE 

A new production of Chekhov’s 
Three Sisters opens on Fri at the 
Burgthetoer, directed by Leander 
Haussmarm. Repertory at 
Akademtetheater includes Chekhov’s 
Unde Vanya and Goethe’s Torquato 
Tasso (51444 2959). Theater in der 
Josefstadt has John Osborne’s The 
Entertfflner (402 5127) 


■ WASHINGTON 

• Mstislav Rostropovich conducts 
National Symphony Orchestra and 
Chorus In Verdi's Requiem tonight 
to Kennedy Center Concert Had, 
with sototeta inducing Denyce 
Graves and WHard White. The 
orchestra is (toned by MarSyn Home 
and other disttogushed guests on 
Fri for a Salute to Slava, celebrating 
Rostropovich’s work to Washington 
(202-407 46 Op) 

• The main summer show at 
Kennedy Center Opera House is 
Miss Saigon, toe musical love story 
set durfog the Vietnam War. Daffy 
except Mon {202-467 4600) 

9 David Zinman conducts 
Baltimore Symphony Orchestra on 


Thurs, Fri and Sat morning to 
Baltimore’s Joseph Meyerhoff 
Symphony HaB. The programme 
consists to George Perfe’s Adagio 
for Orchestra and Mahler's Seventh 
Symphony (410-783 8000) 

• The Chieftains, one of the 
leading Irish folk groups, can be 
heard in concert at Wolf Trap on 
Thurs (703-255 1860) 


■ ZURICH 

Opemhaus Tonight Nikolaus 
Harnoncourt conducts final 
performance of Helmut Lohn fir’s 
new production of Offenbach’s La 
B elle Hdl&ne, with cast heeded by 
Vessefina Kasarova and Deon van 
der Walt. Thuts, Fri: Mozart ballet 
production, choreography by Bemd 
BienerL Sat Un baflo in maschera. 
Sun: Don Carlo with Francisco 
Aratza, Leo Nucci and Mara 
Zampieri. Mom Sandor Vegh 
conducts orchestral works by 
Haydn, Mozart and Beethoven 

(01-262 0009) 

Tonhafle Tomorrow: Vladimir 
Fedosseyev conducts Tonhafle 
Orchestra in works by SkryaWn and 
Falla, with piano soloist Elisabeth 
Leonskaja. Fri: Fedosseyev conducts 
final to 1994 Gera Anda Piano 
Competition, featuring three young 
pianists in concerto performances. 
Sat Krystian Zimerman piano recital 
(01-261 160C9 

Schausptefhaus Tonight, Thurs, 

Sun: new production to Pirandello's 
Man, Beast and Virtue, directed 
by David Mouchtar-SamoraL 
Repertory also Indudes. DQrrenmatfs 
The Visit, David Mamet's Oleanna 
and a studio production to John 
Osboma's Look Back In Anger 
(01-221 2283) 


ARTS GUIDE 

Monday: Berlin, New York and 
Paris. 

Tuesday: Austria, Belgium, 
Netherlands. Switzerland. Chi- 
cago, Washington. 
Wednesday: France. Ger- 
many, Scandinavia 
Thursday: Italy, Spain, Athens, 
London, Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 
(Central European Time) 

MONDAY TO FRIDAY 
NBC/Super Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730, 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

E u ro no ws: FT Reports 0745, 
1315, 1545. 1815. 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky News: FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sky News: FT Reports 0430, 
1730; 


1 



1 


i 




TIMES TUESDAY JUNE 14 


THE FT INTERVIEW: Peter Wallenberg 



Peter Wal- 
lenberg, patri- 
arch. of the 
fourth genera- 
tion of one 
of Europe’s 
mightiest in- 
dustrial families, has the bat- 
tered but exhilarated air of 
someone who has just been on 
a particularly bone-shaking 
fairground ride. 

With good reason. Not only 
has he steered his empire - a 
network of holdings that com- 
prises almost every 
well-known name in Swedish 
industry, including Astra, 
Asea, Electrolux, Ericsson, 
Saab -Scania and Stora - 
through Sweden’s worst reces- 
sion since the 1930s. He has 
also, contrary to widespread 
expectations, emerged more 
dominant than ever in Swedish 
business. 

Mr Wallenberg, a gruff, rum- 
pled figure with an impish 
sense of humour, can afford a 
little self-congratulation in 
talking about his recent ordeal: 
"You can ask my colleagues 
and they will say: Ton smell 
trouble long before anybody 
else’.” 

Nevertheless, he remains 
acutely sensitive about the per- 
ception that the industrial edi- 
fice he has controlled for the 
past 12 years was almost 
brought down by recession. 
Frequently in the past 18 
months commentators ques- 
tioned whether a domain that 
stretches from forestry 
through engineering and motor 
manufacturing to telecommu- 
nications and pha mtarwnHftfllfi 
could survive shrinking mar- 
kets and piles of debt 
Mr Wallenberg, now 68, does 
not deny that the recession 
“put the whole organisation to 
a very tough test”. It was, he 
says, "the sort of experience 
when, really, your heart goes 
down very far in your body at 
an early stage and you live 
with that until you work your 
way out of it". 

An important turning point 
came with the flotation and 
heavy devaluation of the Swed- 
ish krona in November 1992. 
The steady slide in interest 
rates and the export lift that 
followed provided a vital life- 
line - not least to Skandina- 
viska Enskilda B anken, Swe- 
den's premier bank and the 
Wallenbergs' financial flagship 
that only a year ago was cm the 
brink of a state takeover. 

Mr Wallenberg prefers to 
stress the toughness and inge- 
nuity of his senior managers in 
pulling the com pani es he con- 
trols out of the mire. Investor, 


Generation 
game winner 





Wallenberg: determined to keep the family inheritance together 


the family’s chief investment 
vehicle which controls most of 
the Wallenberg blue-chips, 
managed to scale down a 
threatening level of debt 
through some deft divest- 
ments, while preserving con- 
trol of its prize assets. 

"The reserves in Investor 
proved more than adequate 
without selling off any single 
major holding," he declares. 
Nor, he insists, is any such big 
seU-off contemplated now. The 

family stiff Controls as irmph as 

40 per cent of the Stockholm 
stock market through compa- 
nies which boast total annual 
sales of SKr450bn (£38bn). 

More than that, the dynas- 
ty’s dominance has been 
enhanced by recent develop- 
ments at Volvo, a company 
that in the past provided a gen- 
uine counterweight to the Wal- 
lenberg empire. After the col- 
lapse of its plan to merge with 
France's Renault and the 
departure of chairman Pehr 
Gyllenhammar, Volvo is sell- 
ing all its non-core interests to 
concentrate on making cars, 
trucks and buses. One large 
subsidiary has already been 
sold - to tiie Wallenbergs - 
and two top Wallenberg men 
have been appointed to the 
Volvo board. 

Needless to say, the kind of 
shareholder revolt that hum- 


bled Mr Gyllenhammar would 
be hard to imaging with the 
Wallenbergs. A system of 
weighted shares, where one 
class of share haa much 
greater voting power than the 
second, is the cement that has 
bound the empire together and 
fended off the threat of foreign 
takeover. The structure, at its 
most extreme, allows Wallen- 
berg companies to control 94J. 
per cent of the votes in Electro- 
lux, the world’s leadin g white 
goods maker, with just 6.4 per 
cent of the capital. 

Mr Wallenberg Is quite unre- 
pentant about this system. Nor 
does he seem worried now that 
it faces any legislative threat, 
either within Sweden or from 
the European Union. "All 
countries in Europe have their 
way of securing industries that 
are of a certain interest to the 
nation in one way or another." 

But what about growing 
assertiveness among minority 
shareholders, in Sweden as 
elsewhere in Europe? Might it 
not eventually undermine the 
Wallenbergs' control? “Look,” 
he says, “the capacity and com- 
petence of the majority odf 
small shareholders to really 
influence a company in a busi- 
nesslike manner might be 
brought into doubt” 

Equally, he bristles at the 
suggestion that such domi- 


nance as he exercises might be 
unhealthy for Sweden, either 
by limiting competition or by 
impeding the growth and capi- 
tal-raising potential of his com- 
panies. The co mpetitive spur, 
he insists, comes from the 
international market, and the 
companies positively benefit 
from the long-term stability of 
ownership and strength of rep- 
utation that his family brings. 

“As long as we perform at 
least as well or better than 
other equivalent indus- 
tries we will do nothing 

that will be against the best 
interests of the country.” 

Q uestions about 
industrial logic, he 
implies, are beside 
the point against 
the overriding objec- 
tive Of main terming the family 
inheritance. “The alternative is 
to sell out, pocket the money 
and do something else. Go fish- 
ing or something.” 

Clearly, that is not an option 
h e contemplates, instead, tin* 
strategy now is to lock abroad 
for expansion because, Mr Wal- 
lenberg says, Sweden is a small 
and saturated market 
Beyond the present his biggest 
preoccupation is passing on a 
healthy bequest to the next 
Wallenberg generation - his 
son Jacob and his nephew Mar- 
cus, both now in their late 3fls 
and playing senior roles in 
Investor and SE-Banken. 

It is a subject that appears to 
weigh heavily on him, not least 
because of his own experience: 
in effect passed ova- for the top 
job by his legendary father 
Marcus Wallenberg, who pub- 
licly deprecated his talents, 
Peter took over in 1982 when 
hi* father dipfl aged 83 - and 
then only after his brother 
Marc, the appointed heir, had 
committed suicide. 

The current patriarch vows 
not to subject Jacob and Mar 
cus to such indignities. But he 
is not yet ready to hand over 
and be is setting tough terms. 

”1 would dearly love to see 
the next generation come on. 
That would make the fifth gen- 
eration. But you know what 1 
would hate to see is for any of 
them to come to the top posi- 
tions and faff." The word '£afl‘ 
comes out like an expletive. “I 
am prepared to let these boys 
[take overj provided they come 
out right" 

Audrey? Gowers, 
Hugh Camegy and 
Christopher 
Brown-Humes 


W hen it comes to 
developing, con- 
structing and operat- 
ing natural gas projects 
around the world, Enron is 
world class. We proved that 
in 1993 by completing the 
world's largest gas- Fired 
cogeneration power plant in 
only 29 months. Today, we're 
still moving full speed ahead 
by fulfilling yet another, 
different energy need -- 
"fast-track" power. 

Enron has just completed 
its second "fast-track" power 
project in the Philippines. In 
only 1 1 months we construct- 
ed and brought on line a 1 16 
megawatt plant in Subic Bay. 
We now opera ft and maintain 
three facilities there, selling 
the power generated to the 
Philippines National Power 
Authority. For developing 
countries such as the 


Philippines, Guatemala and 
India, Enron International's 
ability to respond quickly to 
critical power needs helps 
alleviate brownouts, blackouts 
and slowed economic growth 
due to inadequate energy 
resources. For yet other 


nations, we're able to step in 
and provide immediate power 
solutions as more and more 
utilities become privatized. 

In addition to "fast- track" 
power solutions, Enron is 
known the world over for our 
unequalled technical expertise 
and uncompromising dedica- 


tion to performance. Enron 
Operations Corp. designs, 
constructs and operates the 
bulk of Enron's physical assets 
including power plants like 
those at Subic Bay ; our gas 
processing facilities and ser- 
vices,- our clean fuels opera- 
tions,- our liquids pipeline and 
44,000 miles of natural gas 
pipeline. Enron Operations 
Corp-, in fact, bears commer- 
cial responsibility for six 
different Enron pipelines on 
two continents. 

Quick response to immedi- 
ate power needs. Pipelines 
and gas processing facilities to 
develop infrastructure. And 
plenty of the clean-burning 
natural gas that makes it all 
possible. They're all part of 
Enron's vision of becoming 

ENRON 

first natural COUP® 
gas major. Houston. Texas 


Joe Rogaiy 


Hope in a bleak house 



There is one 
comforting ob- 
servation to 
offer Britain's 
Conservatives 
this morning. 
The next gen- 
eral election 
need not be 
held until the late spring of 
1997. That is nearly three years 
away. As Lord Wilson might 
say, 150 weeks is a long time in 
politics. Contrary to the 
impression given by some 

VtogrTHnp^ Hia grnfp m ingni itiii 

not change last week. Mr Tony 
Blair is not the leader of the 
Labour party, although he Is 
front-runner for that post. 
Labour did not sweep to power 
at Westminster over the week- 
end, although its etemras of SO 
doing have improved. Mr John 
Major is to be found in his 
office in No 10 Downing Street 
The prime minister has thp 
levers of power in his hands. 
What he does with than can 
rnaifP a Hiffiw»»nffg He showed 
this yesterday when he pot on 
a confident performance at a 
press conference called, clev- 
erly, in the sonny garden of No 
ID. He is here to stay, he said, 
and sounded as if he ffipant it. 

He might be. In Germany 
chancellor Helmut Kohl 
seemed doomed a few months 
ago. The Social Democrats 
looked set to take office in 
October's general election. The 
ftffnnmwy is QnlyjUSt beginning 

to emerge from recession. Yet 
on Sunday Mr Kohl's Christian 

T tonnrrate pine aTHug aWrairt ffd 

some 40 per cent of the Euro- 
poQ against 32 per cent for the 
Social Democrats. The British 
prime minister's explanation is 
that the recent experience of 
most democracies is the same. 
Mid-term protests like last 
Thursday’s in Britain melt 
away when a general election 
approaches, as in Germany. Mr 
Major may be taking lessons in 
political sumo wrestling from 
his friend Helmut. He appears 
to be aware that a hard-nosed 


resh uffle of hfs cabinet would 
be a start. 

That said, it is difficult to 
argue that a Tory resurgence is 
likely. There is a feeling 
around that the Conservatives' 

Him* has come, that whatever 
they do they are beading for 
the opposition benches. Their 
nadir lies nhgari with a lower 
point to follow. They have bro- 
ken a series of worse- than-ever 
records: worst local election 
performance, worst by-election 
showings and, in the Euro-elec- 
tions. worst scores by either of 
the two largest parties in a 
national contest since the 
Labour debacle of 1983. They 
are tired, discredited, and irre- 
mediably divided over Europe. 

How can such 
a shambles 
stand up to 
the resurgent 
might of the 
Labour party? 

Perhaps by 
cutting taxes. 

The com- _ 

monly cited VOtGTS of involving per- 

reason for centages. turn- 

the govern- parties may out. swing, 

meat’s impopu- nroject their hopes opinion polls 

larity is it * ' r and suchlike 


rates will doubtless be 
upwards. The government is 
committed to adding 5 per cent 
per future Budget, in real 
toms, to road fuel tax, not to 
menti s" a niiwiiar 3 per cent on 
tobacco. It may. however, cut 
taxes in the November 1995 
Budget, or the following year. 
Mr Major’s attack on beggars 
during the Euroelection cam- 
paign revealed bow ruthless he 
can be if his or his govern- 
ment’s survival is at stake. 
Picking our pockets in order to 
bribe us with our own money 
near a general election will not 
trouble the Conservative con- 
science next time. It never has. 

It would be wrong, therefore, 
to assert that the Tories are 

finished. It is 

more fruitful to 
set out the rea- 
sons why so 
many of us 
strive to 
believe that 


There is doubtless 
wishful t hinkin g. 

Mr Blair is 

becoming a ^ m For . 

L . screen upon Which get calculations 


won in 1992 by 
falsely promising lower taxa- 
tion. As the ghastly results of 
the Euroelections have come 
in, some landing Conservatives 
have started to talk of a tax cut 
that would restore the govern- 
ment’s fortunes. There is a 
small obstacle in the way of 
such a strategy. The two Bud- 
gets of 1983 planted a long 
series of voter-repellent irrita- 
tion marhinag in the calendar. 
In October we will get the 
insurance premium tax of 3 per 
cent, plus an impost of £5 on 
domestic and £10 on foreign 
flights. 

Next April, VAT on domestic 
halting fuels more than dou- 
bles, to 17.5 per cent Income 
tax allowances and mortgage 
interest relief fail from 20 per 
cent to 15 per cent, at a time 
when the trend in interest 


voodoo. Labour 
attracted some 600.000 more 
voters in last Thursday’s Euro- 
elections than it had in the 
similar poll in 1989. The Con- 
servative popular vote was 
1.1m down. This might be put 
down to the tax increases, in 
which case Mr Major is right 
when he says we should wait 
for the recovery to percolate 
through. Alternatively the 
Tory abstentions, and the 
accretion of Labour votes, 
might indicate a greater depth 
of feeling than mere bribery 
could reach. 

Over the past few years, and 
particularly since Black 
Wednesday, the political pros- 
pect has been depressing. The 
government constantly trips 
over itself. The opposition has 
not presented a credible alter- 
native social or economic strat- 


egy. National self-confidence 
has ebbed away, as the great 
institutions, from the monar- 
chy downwards, have beta 
shown to be flawed. The high 
tide of Thatdferite triumphal- 
ism of 1988 has reced ed, to 
reveal an empty, debris-strewn 
beach. No political leader has 
yet been able to shake us out 
of this mood, certainly not Ur 
Neil Kinnock or Mr John Major 
nor. it must be acknowledged. . 
Mr John Smith while he was 
alive. 

Suddenly, and perhaps rate 
leading] y, change seems possi- 
ble. The likely new feeder of 
the Labour party presents a 
reassuring face at a tizns urban 
the party Itself is regarded, in 
all regions of the country, as 
less frightening than it was 
even two years ago. None of us 
can tell at this stage whether 
Mr Tony Blair can live up to 
his promise, or whether the 
party be aspires to lead will 
permit him to do so. What dote 
seem clear is that Labour, or 
rather Blair-led Labour, Mans 
to offer an end to the bleak 
management of Britain that 
has so dispirited us. 

There is doubtless wishful 
thinking here. Mr Blair, a mas- 
ter of the art of speaking in a 
manner that his audience likes 
to hear, is becoming a screen 
upon which voters of all par 
ties may project their hopes. 
This has nothing to do with 
the mundane question of 
whether he shares this particu- 
lar aspiration or that, or could 
make this or that political 
dream come true. His hour has 
arrived just when people are 
looking for a reason to 
be optimistic. The desperate 
Tory dingoes, low and mean in 
their cunning, will know what 
to do. They will yelp and bay 
around him. corner his party, 
press Labour tu come clean 
with specific policies and 
costed proposals so that they 
may be torn to shreds. We 
voters can only watch, and 
tremble. 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 3938. Letters transmitted should be dearly typed and not hand written. Pi ease set fax for finest resolution 


‘Excessively high 7 returns are 
sought for long-term projects 


From David Miles. 

Sir, The recent debate on div- 
idend payments by UK compa- 
nies and the associated issue of 
whether pressures from the 
City of London discourage lon- 
ger-term investment has gener- 
ated much beat bat limited 
light A key issue in evaluating 
the efficiency with which 
resources are allocated in the 
UK Is assessing whether the 
returns required by investors 
for funding longer-term pro- 
jects undertaken by industrial 
and commercial companies are 
too high. Assessing those 
required returns is itself tricky 

— though Tnanipnlatinn of vari- 
ous financial market data can 
be informative. Much harder is 
assessing what required 
returns should be given the 
time horizon over which physi- 


cal investment or R&D expen- 
diture might pay off and the 
risks involved. 

In an article published in the 
November 1993 volume of the 
Economic Journal I described 
some research I carried ont 
into whether returns required 
by the stock market on longer- 
term investment by UK compa- 
nies looked too high. Two con- 
clusions were reached in that 
paper. First, the returns 
required on projects which did 
not pay back for five years or 
so appeared to be very substan- 
tially higher than the returns 
required on projects which 
paid off more quickly (within a 
year or so). Second, the differ- 
ence in required returns 
appeared to be larger than 
could easily be warranted on 
the basis of risk. The econo- 


metric study used data on 
around 500 medium and large 
UK public corporations and 
covered the period 1975-1990. 

In an area as complex as 
this, no econometric study 
could be expected to settle the 
issue. But testing hypotheses 
about the operation of markets 
by carefully analysing the his- 
torical record offers the only 
constructive way forward. On 
the basis of the little economet- 
ric work that exists, there is 
worrying evidence that compa- 
nies in the UK face excessively 
high required returns for lon- 
ger-term projects. 

David Miles, 
senior UK economist, 

Merrill Lynch, Pierce, Fenner & 
Smith, 

25 Ropemaker Street, 

London BC2Y 9LY 


Audit burden more likely to increase 


From A J Marshall. 

Sir, I write to draw your 
attention to a political con- 
trick which is being pulled on 
small businesses. 

The government announced 
with great gusto a lifting of the 
audit burden from small com- 
panies. As a chartered accoun- 
tant with many small company 
clients, I have studied the draft 
legislation and would like to 
warn the public that they will 
not see any significant cut in 
costs if the legislation goes 
through as it stands. 

For companies falling in the 
turnover range of £90,000 to 
£350.000 per annum, the pro- 
posed legislation requires the 
accountant to sign a new 
report, replacing the audit 
report. However, the work 
required to enable the accoun- 
tant to sign the new report will 
be almost as much as is cur- 
rently carried out for an audit 
of this size of company. As the 
wording of the new report 


introduces new risks for the 
accountant which have yet to 
be tested in the courts, many 
accountants may feel it neces- 
sary to carry out more work 
than before. 

The Department oE Trade 
and Industry is dealing almost 
exclusively with the Auditing 
Practices Board on this matter. 
The Auditing Practices Board 
is responsible for standards 
and guidance wi thin the pro- 
fession on auditing matters. As 
such, it is mainly concerned 
with larger companies and, 
from what it has written and 
said, appears to have little 
grasp of the practical implica- 
tions of the proposed legisla- 
tion and its effect on small 
companies. 

In its rush to score political 
points out of this matter, the 
government has not allowed 
sufficient time to ensure that 
the proposals are workable. 
The draft legislation was 
issued towards the end of May 


and responses on the matter 
were required by June 10. With 
the Auditing Practices Board 
behind the proposals, it seems 
extremely unlikely that it is 
going to be altered before 
becoming law. 

Of course it makes sense to 
maintain a requirement for 
small businesses to involve a 
chartered accountant in their 
accounting affairs and it 
makes sense to remove unnec- 
essary elements of the accoun- 
tant's work. However, to tell 
small businesses that their 
burden is being lifted when, in 
the fullness of time, they will 
realise that it is not. Is nothing 
more than a cheap and nasty 
political trick. 

A J Marshall, 

ch airma n, Portsmouth Area 
Chartered Accountants, 

Apex House. 

Fareham Heights, 

Standard Way, 

Fareham, 

Hampshire POl6 8XT 


Gaping hole 
in OECD 
report 

From Ms Jane Goodshr. 

Sir, David Goodhart’s report 
of the OECD jobs study 
(“Rejecting the unthinkable 
and the unacceptable”, June 8) 
concludes that "lobby groups 
will simply pick out what they 
want in order to reinforce what 
they arc already doing.'* My 
concern is that, by removing 
references to the link between 
long-term unemployment and 
rising levels of crime ami drug 
abuse, the OECD report leaves 
a gaping hole in what public 
services the private sector and 
drugs services should be doing. 

A number of the submissions 
to government under the City 
Challenge programme included 
tackling local drug misuse as 
part of a comprehensive pack- 
age of measures to improve 
local economic well-being. Yet 
the guidance issued by the 
Department of the Environ- 
ment for the new single regen- 
eration budget makes no 
explicit reference to tackling 
drug misuse. If the government 
is serious in its attempts to 
tackle the economically damag- 
ing impact of drug misuse and 
associated crime, it must 
ensure its constituent depart- 
ments speak coherently. Tack- 
ling drug misuse must be a prt 
ority area in the regeneration 
budget for the future. 

Also, we must expect local 
economic development agen- 
cies and training and enter- 
prise councils to focus on the 
deleterious effect of drug mis- 
use in many areas and particu- 
larly among young people. We 
must see a process begin 
whereby those responsible at 
the local level for training, 
education and enterprise' devel- 
opment engage in a dialogue 
with health, criminal justice 
and specialist drug services. 
Jane Goods ir, 
chedr. Standing Conference 
on Drug Abuse. 

32-36 Loman Street, London $El 


Strategy needed for UK to compete as rest of the world does 


From R N Bradford. 

Sir. In general, I totally agree 
with the arguments presented 
by Mr Robert Bischof (Personal 
View, June 10). The British 
government’s seeming obses- 
sion with labour deregulation 
and an apparent consequent 
lower wage cost advantage, as 
the latest miraculous route to 
economic success, is shot 
through with flaws typical of 
the limited thinking qE three 
remote from the business 
world. In most manufacturing 
companies of my acquaintance, 
direct labour costs are a rela- 
tively small proportion of cost 
Purchases — mainly matorigic 
- can be four or five times as 
high; so if we want to reduce 


cost which area should we 
attack first? 

As Mr Bischof points out, 
overall productivity is the key 
to cost efficiency and effective- 
ness, involving total effort 
across a company. But while 
this is a highly significant 
truth, It is in turn part of a 
broader truth, which is simply 
that as a nation we will only 
sell goods and services that 
other people wish to buy. The 
business orientation needed to 
address this Is defined by the 
word marketing, and this, in 
my opinion, is where as a 
nation we have been palpably 
weak and, with odd notable 
exceptions, continue to be so. 

My own evidence comes 


from more than 30 years as 
line manager, company direc- 
tor and management consul- 
tant, working with companies 
of literally all shapes and sizes. 
And on the broader front, there 
are signs a-plenty. The limited 
horizons of too many of today's 
boards lead to justified allega- 
tions of short-termism. Hand- 
wringing continues year in, 
year out, at our propensity to 
invent things only to lose out 

on commercial exploitation. 
Government after government 
various palliatives, 
but steadfastly resolves not to 
the long-term eco- 
wunlc strategy that identifies 
the key technologies and mar- 
kets of tomorrow, and then cre- 


ate an environment that really 
will help businesses in S 
areas to grow strong. Cries off- 
stage, at this point, of “inter- 
ventionism" and worse - to 
which I would suggest that It 
is high time we decided to live 
m the real world, get out there 
and compete as the rest of the 
world does. The alternative, as 
be inferred from Ur Bts- 
choFs article, is to continue 
the story of persistent relative 
decline, led by economically 
illiterate politicians and busi- 
nessmen with an eye. to the 
upain (short-term) chance only, 
R N Bradford. 
l Trinity Gardens, 

Bun gay. 

Suffolk NR35 1HH 


♦1 


4i 








FINANCIAL TIMES 

0ne Southwark Bridge, London SE1 9HL 
Tel: 071-873 3000 Telex: 922186 Fax: 071-407 5700 

Tuesday June 14 1994 


New patterns 
in Europe 


Anyone who points out that the 
soealled European elections are in 
reality no more thaw 12 separate 
national opinion polls almost 
invariably goes on to deduce some 
Europe-wide pattern or moral 
from their results. This time even 
the almost universal expectation, 
that voters would use the occasion 
to express disgust with their 
incumbent governments, proved 
only very patchily true. But some- 
thing like a general law on that 
point can be deduced, namely that 
governments do worst when elec- 
tions are genuinely odd-term. The 
nearer voters are to a general elec- 
tion, whether behind or in front, 
the more indulgent they may be 
towards governing parties, pre- 
sumably because they are think- 
ing harder about the alternative. 

Thus while the Spanish elector- 
ate no longer felt any obligation to 
stand by its year-old support fbr 
the scandal-ridden Socialists, 
Greek and Italian voters did re-en- 
dorse their more recently elected 
governments {'of left and right 
respectively), while German vot- 
ers gave a sharp warning to the 
opposition Social Democrats not to 
count on a general election victory 
in October. The Luxembourg gov- 
ernment found the ideal solution: 
it held its general election on the 
same day as the European one, 
and did handsomely in both. 

If all member states followed 
that example the European elec- 
tion would get less media cover- 
age. but more people would vote 
in it; and it would be a striking 
affirmation of European unity, 
since all EU citizens would be 
choosing their national parlia- 
ments on the same day. But 
national governments would prob- 
ably find it even more difficult to 
synchronise their political calen- 
dars than to agree on a single 
European time zone, or indeed a 
single currency. Other ways of 
imparting a sense of common des- 
tiny to the peoples of Europe need 
to be found. One of the more obvi- 
ous, prescribed in the Treaty of 
Rome but still not implemented, 
would be to elect the European 
parliament on an EU-wide system. 

Proportional system 
That would of course have to be 
a proportional system, which is 
why the Conservative party has 
resolutely resisted it for mainland 
Britain (even while imposing it on 
Northern Ireland lest the Catholic 


population go unrepresented). 
Reduced today to is MEPs. and 
only one north of the Wash, that 
party should now realise the error 
of its ways. 

The argument that PR for 
Europe would be the thin edge fbr 
Westminster Is bogus - one 
expects the European parliament 
to produce a disciplined majority 
for a single-minded European gov- 
ernment, which is not exactly 
Conservative policy. The actual 
purpose of the European parlia- 
ment is to reflect the different 
strands of public opinion through- 
out the EU. By sticking to a sin- 
gle-member system, which gats 
less proportional as constituencies 
get larger, the UK ensures that 
this reflection is seriously dis- 
torted - in the present case giving 
the dominant Socialists an artifi- 
cial boost to offset the net loss 
they suffered in terms of votes. 

Federalist vision 
In the Union-wide popular vote, 
these elections were in fact a vic- 
tory for the moderate right The 
Ear right was happily defeated in 
Germany, and fell back slightly in 
both France and Italy. The Euro- 
pean People's party (Christian 
Democrats and allies ) did well in 
Spain, where it benefited from Mr 
Gonzalez’s and in the suc- 
cessor states of the Holy Roman 
Empire - Germany and Benelux, 
to which one might add Austria, 
where the referendum result was 
above all a triumph for Mr Alois 
Block. This central core of Europe, 
R seems, is still wedded to a feder- 
alist vision, while in Franco and 
Italy conservatives of a more 
Euro-sceptic bent are on the rise. 

When all that is said, the differ- 
ence between the results in the 
UK and Germany remains stri- 
king. Both countries have been 
piloted through gruelling reces- 
sions by conservative leaders who 
have taken a battering from both 
media and opinion polls, not least 
for their alleged willingness to 
sacrifice national interests and 
sovereignty on the altar of Maas- 
tricht But while John Major has 
tried desperately to appease the 
Euro-sceptic wing of his party, 
Helmut Kohl has ploughed reso- 
lutely on, tirelessly inciting his 
countrymen to lift their eyes from 
the small print and remember how 
much is at stake in the success of 
the European enterprise. The 
results speak for themselves. 


Councils and the 
Concorde fallacy 


The Concorde fallacy is the name 
given to the belief that it is a 
waste of money to pull the plug on 
a project once you have invested a 
lot in it. The Anglo-French super- 
sonic aircraft swallowed huge 
sums of public money long after it 
became clear that it would never 
yield a profit. Local government 
reorganisation in England has 
become the political equivalent of 
the fallacy, with the government 
unwilling to stop a process that 
can only increase its unpopularity. 

The government has contracted 
out the process to a quango, the 
Local Government Commission 
chaired by Sir John Banham. It 
hoped to see the present two-tier 
structure of local government out- 
side the big cities replaced with 
single-tier unitary authorities. The 
commission would do the legwork, 
producing proposals for each area 
tailored to local needs. 

Unfortunately it has not been 
that simple. The commission has 
produced widely differing propos- 
als. ranging from no change to 
complicated permutations of uni- 
tary and two-tier authorities. 
Some of tile commission’s recom- 
mendations have been welcomed. 
The restoration of tiny Rutland, 
swallowed by Leicestershire in 
1974. has gladdened the hearts of 
the 33.000 residents even though it 
could add as much as £I2S a year 
to their council tax bills. 

But proposals that involve abol- 
ishing or shrinkin g historic shire 
counties have produced intense 
opposition. Business fears that it 
will have to deal with a multiplic- 
ity of authorities that are too 
small to think strategically. MPs 
and councillors feel that the aboli- 
tion of counties with records for 
modestly efficient administration 
is unlikely to improve the quality 
of local government. 

Heavyweight support 

Opponents of reorganisation 
have received heavyweight sup- 
port from a recent Audit Commis- 
sion report on the likely costs. The 
local authority watchdog warned 
that new authorities might inherit 
depleted reserves and high spend- 
ing commitments. During the 1974 
reorganisation of local govern- 
ment, the building of new munici- 
pal swimming pools ran at three 
limes the normal annual level. 
Councils facing abolition find the 
spending of reserves on tangible 


memorials irresistible. 

The form of the reorganisation 
might have been designed to 
increase costs. Where unitary 
authorities are created, each must 
employ managers to deliver the 
services previously provided by a 
single county - Instead of one 
education director, there will be 
several And since most of the 
new unitary authorities will be 
larger than existing districts, 
merger costs will be substantiaL 
There is unlikely to be much 
change left out of £lbn for the 
coats of the shake-up. Since reor- 
ganisation will happen in the 
run-up to the next general elec- 
tion. backbench MPs fear that 
they will pay the {alee. 

Put on ice 

Reorganisation also threatens 
attempts to improve the manage- 
ment of local services, according 
to the Audit Commission. Manag- 
ers are already devoting their time 
to chasing top posts after reorgan- 
isation. Policies such as compul- 
sory competitive tendering - 
responsible for improving the effi- 
ciency and effectiveness of local 
services - are being put on ice 
during the transition. 

Local government needs to be 
able to act strategically, deliver 
local services responsively and be 
locally accountable. A two-tier 
structure is the best way to 
achieve this, with larger strategic 
county councils and smaller dis- 
tricts to provide services. The sin- 
gle-tier authorities eme rgi ng from 
the Banham commission seem too 
large to he truly local Yet they 
will be too small to handle strate- 
gic functions which will have to 
be passed to joint boards and 
quangos. The outcome will be 
more bureaucracy and less 
accountability. 

It will not be easy for the gov- 
ernment to call a halt to local gov- 
ernment reorganisation. Opportu- 
nities to do this at an earlier stage 
were foolishly rejected last year. 
Now even more political capital 
has been sunk in the project. 
There is a case for unitary status 
for a few larger cities snch as 
Leicester and Bristol and for abol- 
ishing unpopular new counties 
such as Avon and Cleveland. But 
in Use rest of the country, scrap- 
ping reorganisation would pro- 
duce a huge cheer and a welcome 
setback for the Concorde fallacy. 


S tagnant revenues, job 
cuts, growing competition: 
the latest snapshot of 
trends affecting the UK’s 
leading accountancy firms 
hi g hli g hts the likelihood of a wide- 
spread restructuring in the profes- 
sion. 

Data fro m the top 30 firms pub- 
lished last week reveals total fee 
income of £3.4bn was all but static 
in 1993-94 compared with the previ- 
ous year. Half of the top firms 
reported a decline in revenues, 
including Touche Ross, one of 
socaRed “big six” firms, which fell 
0£ per cent to £S3SL9m, taking it 
from fifth to sixth place in the 
accountancy league table. 

"ft’s been a very, very difficult 
year,” says Mr Nick Land, manag- 
ing partner of Ernst & Young, 
which dropped from third to fourth 
place despite raising fee income 3.8 
per cent to £388.4m. “It’s still very 

hard out there. A lot of my manag- 
ers are very cautious looking for- 
ward. It’s very competitive." 

The gloom might have been worse 
without the counter-cyclical income 
from insolvency work. Economic 
recovery is now catting that source 
of revenue but has not yet proved 
sufficiently strong to ensure a 
return to the high growth rates in 
audit fees that the firms experi- 
enced in the late 1980s. 

Faced with these pressures, in the 
past two years accountancy firms 
have begun cutting jobs and other 
overheads. The number of partners 
has dropped by 7 per cent in the 
past 12 mnntha and the number of 
other professional staff whose work 
is charged to clients by 6 per cent 
“I tVimit all the have more 
cuts to make," says Mr Ian Biindle, 
senior partner of Price Waterhouse, 
which dropped from fourth to fifth 
place after reporting almost 
unchanged revenues of 2384.6m for 
1983-94. 

In spite of such pessimism, the 
figures do not tell the whole story 
and have to be read with nawHnn 
The firms only reveal the gross rev- 
enues received from clients. As 
partnerships they are not obliged by 
law to reveal their profits or losses, 
and currently they have no inten- 
tion of waiving this right. 

It is also difficult to nwiirp com- 
parisons between firms, given the 
different ways in which the infor- 
mation is collected and the growing 
diversification in the activities of 
the firms which has reduced the 
areas in which they are direct com- 
petitors. 

In particular, some of the larger 
firms argue that there is a glaring 
difference between themsel ves and 
Andersen, which comprises Arthur 
Andersen and Andersen Consulting, 
an d which has jumped in the past 
two years from sixth to third posi- 
tion in the league table, with total 
fee income of £433Am in 1993-94. 


Hunters look for 
choicest morsels 

With fee income static, UK accountancy firms may 
ive to make big changes in strategy, says Andrew Jack 

rtf AnHorcon’c mnomn 


Much of Andersen’s income 
comes from its manage mif con- 
sulting work and from “out-sourc- 
ing” - the process of taking over 
and running contract functions 
such as computer, accounting and 
tax work that clients would previ- 
ously have run in-house. 

Mr Peter Smith, chairman of Coo- 
pers & Lybrand, unchallenged as 
the UK’s largest firm with revenues 
of 2560m, hints at a widespread feel- 
ing that Andersen should be seen as 
in a different sort of business; “I 
don’t see that tt makes sense to 
aggregate high-level intellectually- 
based consulting services with 
hangers frill of people running com- 
puters." 

Andersen has been successful In 
exploiting the markets that rivals 
such as Price Waterhouse 
attempted to emulate at its cost 
daring the late 1980s with a consult- 
ing arm that subsequently had to be 
restructured with substantial job 
losses. "Let them (other firms] say 
whatever they want," counters Mr 
Jim Wadi a, Arthur Andersen's man- 
aging partner. “We want to grow 
and succeed." 

Part of Andersen’s success is due 
to its ability to control overheads, 
the premium it pays to recruit the 
best graduates, the provision of 
high quality training, and good 
management information systems. 

Other large accountancy firms 
are cnncidpr lnfT similar m e th o ds to 
boost their profitability. But if 
Andersen’s rivals believe the pros- 
pects are as gloomy as they make 
out, they also face a number of stra- 
tegic choices: whether to continue 
offering a broad range of profes- 
sional services or to specialise in 
just a few; whether to offer high-fee 
advisory services or high-volume 
“Outsourcing" and similar products; 
and whether to serve a wide group 
of clients or focus on particular 
industrial sectors. 

Mr David Maister, a US-based con- 
sultant to professional firms such 
as accountants and lawyers, likens 
the large firms during the 1980s to 
the “hunter-gatherers" of nomadic 
tribes, always roaming for new 
products. “Everyone’s job was to 
hunt buffalo, but when they saw a 
goose they thought ‘just kill meat 
whatever it is.'” If one firm started 



Colin S barm an of KPMG: 'You 
can see quite dear differences 
emerging between the firms’ 


David McDonnell of Grant 
Thornton: The second her will 
reduce to maybe three or four* 


UK ACCOUNTANCY FIRMS* FEE INCOME 

Firm 1993/M % change % at fee income from: 

(Dm) on 1992/93 Aucfit Tax Mgement Insol- 

consuftcy vency 


Coopers and Lybrand 

560.0 

+1.3 

45 

22 

22 

11 

KPMG Peat Marwtek 

497.6 

+1.4 

40 

22 

14 

10 

Andersen 

433.0 

+11.7 

19 

16 

58 

7 

Ernst & Young 

388-4 

+3A 

43 

28 

18 

10 

Price Waterhouse 

384.6 

+0.8 

41 

28 

22 

9 

Touche Ross 

332.9 

-0.8 

40 

23 

21 

12 

Grant Thornton 

107.0 

-6.0 

35 

30 

4 

24 

BOO Binder Hamfyn 

106.5 

-1.8 

60 

29 

4 

7 

PanneU Kerr Forster 

79.7 

-4.1 

46 

24 

6 

16 

Stay Hayward 

78.0 

+4.4 

48 

21 

11 

20 


offering a new service, the others 
felt they had to follow. 

This approach worked when vol- 
umes were growing rapidly, but 
there was little attention to longer- 
term strategy or the costs being 
built into operations. In the 1990s, 
Mr Maister warns that niiwntg are 
becoming more cost conscious and 
more critical of services the firms 
provide. 

There is evidence that some firms 
are beginning to respond to such- 
pressures. At KPMG Peat Marwick, 
the second largest firm with income 
of £497 Am last year, Mr Cohn Shar- 
man, senior partner, sails: “Yon can 
see quite dear differences merging 
between the firms. We will focus 
more on the core services of audit, 
corporate finance and recovery 
[including insolvency and company 


restructuring], tax and business 
transformation consulting. We want 
to be seen as advisers." 

KPMG has restructured the firm 
around teams of professionals with 
a range of sMila serving particular 
industry sectors, rather than organ- 
ised along traditional iin« such as 
fur ami consulting. Coopers is also 
fa the middia of a wide-ranging re- 
organisation around industry 
groupings. 

Mr Sharman predicts that several 
of his large rivals including Touche 
and Andersen will offer a broader 
range of services such as outsourc- 
ing. which may offer lower margins 
but which, because of the high vol- 
umes, can also be profitable if man- 
aged welL 

Mr Maister predicts that one of 
the large accountancy firms may 


within the next few years abandon 
auditing, while another firm speci- 
alises in nothing else to provide 
highest quality. “Audit is low 
growth, low fee and brings a high 
risk of litigation," he says. 

Mr Sharman is sceptical, how- 
ever, pointing out that the statutory 
audit each year of British compa- 
nies provides a launching pad from 
which firms can sell other services 
to the client “It’s too much of an 
annuity stream to give up.” he says. 

W hile decisions 
about strategy are 

important for 

larger firms, they 
are still mare 
pressing for their medium-sized 
rivals. The past few years have wit- 
nessed growing consolidation of the 
profession. OF the income generated 
by the top 30 firms, the "big six” 
alone take 76 per ceut 
While there will probably always 
be scope for small high-street prac- 
titioners, there is a question-mark 
over the viability of 15 middle-rank- 
ing firms. Mr David McDonnell, 
managing partner of Grant Thorn- 
ton, the seventh-1 a rgest UK firm, 
says: “The current position is not 
sustainable. The ‘big six' may 
become five or four but the next tier 
will reduce to maybe three or four 
firms within a few years." 

The answer, he argues, is to speci- 
alise. The costs of remaining gener- 
alist providers will make mid-size 
firms’ fees uncompetitive with 
smaller, high street rivals which 
have lower overheads and concen- 
trate on a few basic services. Grant 
Thornton, for instance, has aban- 
doned much of its work for larger 
clients, and is specialising in offer- 
ing general business advice to fast 
growing companies. 

Other mid-size firms may either 
fold, or be forced to merge: either 
with each other, or - for the hand- 
ful that still have large clients - 
with a big firm. One of the last of 
these - the combination of BDO 
Binder Hamlyn. the eighth-largest 
firm, with Andersen - Is likely to be 
completed over the summer, in a 
move which will probably propel it 
to second place in the league table 
next year. 

Like, their larger counterparts, 
mid-size accountancy firms, are 
having to come to terms with the 
prospect of much more sluggish 
growth in the 1990s than they expe- 
rienced in the past decade. This 
presents a particular challenge to 
the current generation of senior 
partners across the accountancy 
sector who have been used to man- 
agement in periods of high growth, 
and only in recent years have faced 
stagnation. As Mr McDonnell of 
Grant Thornton says: “We will have 
to adjust to the difficulty of operat- 
ing for the long-term in a low infla- 
tion, low growth economy”. 


Can aid buy Palestinian peace? 



Even before the 
Israel-Palestme Lib- 
eration Organisa- 
tion accord on the 
principles for peace 
negotiations was 

pfISS/ 337 concluded ’ us 

Yivw L 80(1 Europemi coan- 

' — tries rushed to offer 

massive economic assistance to the 
nascent Palestinian autonomous 
entity, ft is gratifying that policy 
makers realise, at last, that eco- 
nomic growth is vital to the success 
of the peace process. Yet it is also to 
be feared that this aid will not only 
be wasted, but may even increase 
political rivalries in an already frac- 
tious Palestinian society. 

There are signs that donor coun- 
tries are aware of the risks involved 
in funnelling massive aid through 
ttw» PLO, an organisation that box 
hardly excelled in managing its own 
considerable treasure. However, 
concern about how efficiently aid 
will be used^albeit important, 
misses the more fundamental i ss mv 
the Impact any large amount of aid, 
however well administered, is likely 
to have on the politics and society 
of recipients. 

Massive aid faflateg an anti-pro- 


ductive public sector and inflames 
political competition for the 
resources it makes available. In the 
Middle East - where statism 
already exacts a high economic toll 
even in such wealthy countries as 
Saudi-Arabia, and where politics are 
not blessed tor moderation - large 
amounts of aid tend to have grave 
repercussions. 

It is encouraging that the World 
Bank, which was put In charge of 
implementing western the aid from 
western governments to the Pales- 
tinians, has endorsed reliance on 
markets and private initiative. It 
also seems determined to proride 
aid only for infrastructure develop- 
ment, such as roads, water purifica- 
tion and sewage systems. 

Western recognition of the dan- 
gers inherent in aid was under- 
scored by the British foreign secre- 
tary, Douglas Hurd, at a recent 
London conference. He asserted 
that donor nations were determined 
not to repeat the mistakes of the 
past They will do all they can, he 
claimed, to ensure that aid pro- 
motes private sector initiative. 

Such sentiments are good news, 
so for as they go. But the World 
Bank will have to struggle against 


the grain of most European bureau- 
cracies if it is to translate its good 
intentions into effective policy. 
Unfortunately, these bureaucracies 
are inclined to encourage political 
meddling in the economy, ostensi- 
bly to correct market failures. Their 
encouragement of a dominant pub- 
lic sector may pose a real danger to 
the economic success of the auton- 
omous entity - and, ultimately. 

The fledgling 
administration could 
be overwhelmed by 
political results of a 
flood of easy money 

to the peace process. 

Furthermore, worries remain not 
just about how the aid will be used, 
but about its size. The fledgling Pal- 
estinian administration could easily 
be overwhelmed by the political 
results of a flood of easy money. 

The economic agreement reached 
between Israel and the PLO in Paris 
does seem to offer a promising 
opportunity for private sector devel- 
opment. It posits open borders 


between the parties and should 
facilitate a fair degree of movement 
of people and goods among them. 

Nevertheless, beneficial co-opera- 
tion cannot materialise without 
structural reforms in Israel’s own 
economy. Since Israeli markets are 
highly regulated and dominated by 
powerful monopolies and oligopo- 
lies, which render market access 
difficult even for small, or newly 
formed Israeli enterprises, freedom 
of access granted to the Palestin- 
ians will not be as beneficial as 
hoped. Worse still, this agreement 
may encourage Palestinian Arabs to 
adopt economic institutions similar 
to those prevailing in Israel 

The Israeli economy has long 
been managed by a cabal erf econo- 
mists and bureaucrats, along with 
their “private” sector associates, 
who think they know everything 
better. They control market forces 
because they are determined to 
bend them to the service of ephem- 
eral “national goals” or to “correct" 
market failures or avoid “uncon- 
scionable” profits b; speculators. 
The unfortunate results include a 
banking system that has had to be 
bailed out by the government and a 
decade of stagnation of output per 


head. Palestinian economists could 
easily contract the same hubris, 
with worse consequences. 

The balance between the forces 
that can promote and undermine 
the peace process is delicate and 
volatile. Manageable quantities of 
economic aid, focused on building 
basic infrastructure, along with lim- 
ited emergency aid to alleviate the 
plight of the unemployed, would 
encourage those supporting peace. 

Western governments and their 
aid agencies must, however, guard 
against the political manipulation 
of aid, which could undermine 
growth and destabilise Palestinian 
Arab society. It would do so by 
encouraging rivalries between com- 
peting factions and promoting cor- 
ruption and nepotism. This is, in 
turn, likely to exacerbate radicalism 
and militant fundamentalism, so 
frustrating all hope for peace in the 
near future. 

Daniel Doron 


The author is director of the Israel 
Centre for Social and Economic 
Progress 


Observer 


Salad days 
are over 

■ There’s no such thing as a free 
lunch in htmiriwg any more. 
Nowhere is this more true than 
at Merrill Lynch in New York 
where the firm has suddenly 
stopped paying for its traders to 

be fed at lunchtime. 

The giant securities firm used 
to pick up the $5.45 lunch tab in 
the hope that it would keep its 
traders working at their desks all 
day long. However, Merrill has told 
its traders that from now cm they 
must pay for their own sandwiches 
and aalarifl during the lunch-hour. 

Merrill refuses to disclose how 
much it will save, but analysts put 
the figure at no more than $500,000 
a year - small change for a firm 
which made bumper profits of 
$L4bn last year. So could the 
derision to stop underwriting the 
traders’ lunch Mils have more to 
do with physical - rather than 
financial - belt-tightening? 


Ill defined 

■ Amazing thing s these computer 
spell-checkers. David Bums, a 
London-based banker who does 
business in Spain, reports that his 
checker suggested “bozos” was 
a better way trf spelling bonus, the 
Madrid g ov e rnment’s volatile 
bonds, ft also recommended that 
IRPF, the acronym for Spain’s 


swingeing income tax, should be 
rendered “irrupt". 

Bums then keyed in (Mario) 
Conde, the disgraced financier who 
was removed from the 
chairmanship of Banesto by the 
Bank of Spain. The machine 
thought “conned" a reasonable 
alternative. (Luis) Vails, the 
ttigtfngiri«hpd chairman of the 
profitable Banco Popular, came 

up as “value”. 

For the IU, the Communist 
party's IzquLerda Unida coalition 
which ffwmp ai gnfl for greater public 
spending, the checker proposed 
“IOET. The Catalan nationalist 
coalition CIU, the power-broker 
in Spain’s hung parliament, flashed 
up as “CIA". 

Clearly the machine has inbuil t 
anti-Spanish sentiments. El Pais, 
one of the top newspapers, it 
regards as “El Pain". 


Wright on 

■ At last some good news. Reuters 
news service carried a reassuring 
headline yesterday: 

“Boeing 777 lands after first 
flight." 

Reading matters 

■ Silver lining for Liberal 
Democrats reflecting on the party’s 
narrow failure to win the European 
seat of Devon and Plymouth East 
after a “Literal Democrat” 
candidate polled a mammoth 10,000 



Tm an abstaining conservative 
with a small V ’ 

votes. It hi g hli g hts the wisdom 
of the party’s policy of earmarking 
an extra ip of income tax for 
spending on education. 


Border patrol 

■ The recent Gatt symposium in 
Geneva on conflicts between free 
trade and environmental protection 
was purring along peacefully until 
Philippe Sands, a young 
shirt-sleeved legal type, 
mischievously provoked Richard 
Bgiin, director of Gaft's Trade and 
Environment division. 

Sands, founder of London 
University’s Foundation for 


International Law and 
Development, started annoying 
Eglin by quoting ebulliently from 
a much-leaked Gat t panel ruling 
on a dispute between US and 
Mexico over the harm that tuna 
fishing can cause to dolphins. Eglin, 
normally a suave, unflappable sort 
responded that he “can’t see why 
people accuse us of lack of 
transparency - this hall leaks like 
a sieve”. 

However, rather than quit while 
he was ahead. Sands kept on 
prodding Eglin and the 300-odd 
delegates to think of an exception 
to his strongly held belief that most 
pollution crossed national borders. 

Eglin offered "noise pollution" 
as an example. Sands nodded at 
the truth of this; but it gradually 
began to dawn on him - along with 
everyone else - that the remark 
might have been directed at him. 


Blown over 

■ Meanwhile, another littie 
environmental tiff seems to have 
been patched up at last Britain’s 
environment secretary John 
Gummer was seen walking 
arm-in-arm into an Oslo hotel 
yesterday with his Norwegian 
counterpart Thorbjoem Bemfcsen. 
Bemtsen, tt may be remembered, 
was the man who told a Norwegian 
election rally last August that 
Gummer was “the biggest drittsekk 
I have met in my life". 

Attending a two-day international 
meeting to sign a UN deal on 


curbing acid rain, Gummer told 
reporters that he had no hard 
feelings - both, were good friends 
again. Fortunately for Bemtsen, 
the Norwegian electorate was 
spared the picture of him cuddling 
up to Norway's number one 
environmental enemy. 
Conveniently, the state-owned TV 
and radio network was on strike 
yesterday. 


Canny response 

■ An Essex man has pleaded guilty 
to leaving a device comprising a 
jam-jar, petrol, batter}', wires and 
a clothes peg in a derelict caravan. 
His solicitor, in a plea of mitigation, 
told Chelmsford Crown Court that 
there were others involved in the 
plot to clear the site of illegal 
caravans and that his client was 
“carrying the can for everybody 
on that site”. 


Guardez I’argent 

■ Who said inflation was dead? 
Harrods, the Knightsbridge souk, 
has started charging female 
customers one pound to “Spend 
a penny”. The store says that its 
new loo, complete with marble 
floors and high-tech flushes, offers 
customers "a chance to get away 
from it all”. But with prices like 
that Observer is reminded of the 
old adage that if you look after the 
pennies, the pounds take care of 
themselves. 




Networking? 

NetWare A, 
of course. 


FINANCIAL TIMES 

Tuesday June 14 1994 


22 Shepherd 

Design & Build 


Frederick House. FuBrad Ro«t Yo*YOl«g. 
Tetaphone 0904 632401. Fwc 0904 610836. 


Pyongyang retaliates for suspension of technical aid , Pension 


North Korea pulls out 
of atomic energy agency 


By John Burton In Seoul 


North Korea yesterday 
announced it was withdrawing 
from the International Atomic 
Energy Agency, but stopped 
short of taking the more serious 
step of pulling out of the nuclear 
non-proliferation treaty. 

Pyongyang said it would no 
longer permit IAEA inspectors 
inf o the co untr y, iTwUrflt i pg that 
it would eject two agency inspec- 
tors who are now monitoring the 
storage of spent fuel rods at the 
North's nuclear facilities at 
Yongbyon. 

The North Korean action was 
taken in response to a decision 
by the agency on Friday to sus- 
pend technical aid to Pyongyang 
as a symbolic penalty for its 
refusal to allow full international 
Inspections. 

“Any unreasonable inspection 
can never be allowed until it has 
bean decided whether we return 
to the non-proliferation treaty or 


completely withdraw from it,” 
said the North Korean foreign 
ministry in a statement. 

North Korea claims that it has 
not been subject to the full 
insppfftfnn demands by the IAEA 
since it suspended its threatened 
withdrawal from the non-prolifer- 
ation treaty last summer. 

"This stand of oats will never 
change until our nuclear issue 
has been solved fairly through 
dialogue and negotiation,” the 
ministry said. Pyongyang has 
insisted that the issue should be 
solved in direct US-North Korean 
talks. 

Former US president Jimmy 
Carter is expected to go to Pyong- 
yang tomorrow in an unofficial 
attempt to keep dialogue open. 
North Korea may be seeking US 
diplomatic recognition and eco- 
nomic aid in return for allowing 
foil international inspections. 

But Mr Kim Deok, South 
Korea's intelligence chief, 
warned yesterday ahead of the 


announcement that North 
Korea's "ultimate goal is to 
develop nuclear weapons and 
they are now employing delaying 
tactics to earn time." 

Sooth Korea is to stage one of 
its largest civfl defence exercises 
in recait years to prepare the 
population for a possible conflict 
with the north. 

South Korea will conduct an 
emergency mobilisation exercise 
for the nation’s 6.6m reservists 
over the next two days which 
will coincide with an airraid drill 
tomorrow covering the whole 
country. Air raid drills, whic 
occur every three months, are 
usually limited to the capital, 
SeouL 

North Korea's withdrawal from 
the IAEA is expected to add 
momentum to efforts by the US, 
Japan and South Korea to per- 
suade the UN Security Council to 
impose phased sanctions against 
North Korea. China has so far 
opppsed sanctions. 


ruling 

threatens 

Italian 

budget 


By Robert Graham In Rome aid 
Andrew HB in MBan 


India offers deal to Kashmiri 
militants to release Britons 


By Alexander Ntcofl In London 
and Stefan Wagstyi and Fatten 
Bokhari in MuzafTarabad, 
Pakistan 


The kidnappers of two Britans in 
Kashmir were offered a "safe 
passage corridor” by the Indian 
authorities yesterday to facili- 
tate the quick release of their 
captives. 

Mr David Eousego, father of a 
16-year-old who is one of the cap- 
tives, last night issued a state- 
ment, intended to be heard by 
the captors, detailing assurances 
given by the Indian authorities 
after meetings he had with them 
in Srinagar. 

"Both the British government 
and I have received assurances 
from the state authorities that 


no operations will be carried out 
which will is any manner endan- 
ger the release of Kfan [Housego] 
and David Mackfe,” Mr Housego 
said by telephone from Srinagar. 

"The assurances I have 
received also include giving a 
sate passage corridor to Haifrat- 
uI-Ansar [the mil Maw* group] to 
enable the relase of the two Brit 
ons within 24 hours or even 
sooner.” 

The assurances appeared to 
meet the concerns of the captors, 
who had said release was being 
hampered by the presence of 
Indian forces. 

Mr Mohammad Farooq Kash- 
miri, Pakistan-based leader of 
Harkat-ul-Ansar, yesterday 
urged Indian troops pursuing his 
fighters to puD bade to create an 


opportunity for the captives to 
be released. 

He told tiie Financial Times in 
Mnzafiarabad, capital of the 
Pakistani-governed region of 
Kashmir, that he had given 
instructions that the safety of 
the two “guests” should be abso- 
lutely assured. But he was con- 
cerned that Indian security 
forces who had cordoned the 
area in which the militants were 
hiding had come very dose. 

"Nobody wants anything to 
happen to our guests because 
that would be a discredit to cor 
organisation,** said Mr Kashmiri. 

Mr Kashmiri said the Britons 
had been captured because they 
bad strayed into an area in the 
mountains where militant fight- 
ers had camps. 


BIS warning I Renault to build in Vietnam 


Continued from Page 1 


Continued from Page 1 


easier if flnnnHai instruments 
could be limited or capital move- 
ments controlled. 

"Global markets are now so 
highly integrated that suppress- 
ing the symptoms of investor 
preferences in one market would 
simply lead to their manifesta- 
tion elsewhere." 

Although the BIS report said 
the "potential for instability in 
these markets is e x t r emely high," 
it suggested that by strengthen- 
ing disclosure and internal con- 
trols, market participants could 
be protected from their own mis- 
takes. 

Mr Wim Dirisenberg, BIS presi- 
dent, told the meeting it was 
important to strengthen the resil- 
ience of individual fmanniai insti- 
tutions. 


Vietnam with Proton, the Malay- 
sian carmaker in which it holds a 
minority stake, and Vietransci- 
mex, a Vietnamese national com- 
pany. 

They are forming a joint ven- 
ture - Vina Star Motors Corpora- 
tion - in which Mitsubishi 
Motors, Mitsubishi Corporation 
and Proton will each hold stakes 
of 25 per cent, to assemble the 
Mitsubishi Delica minibus. Pro- 
duction is to start next March. 

Mekong Corporation, a Japa- 
nese-South Korean joint venture 
with Vietnamese companies, 
assembles four-wheel-drive 
vehicles at a plant in Ho Chi 
Mish City and has a plant near 
Hanoi that produces light buses 
and trucks in co-operation with 
Iveco, the commercial-vehicle 


subsidiary of Fiat of Italy. 

Meanwhile, Reuter reported 
yesterday that a senior official of 
Vietnam Motors in Hanoi had 
confirmed that the Vietnamese 
government bad derided to raise 
taxes on imparted cars to 200 per 
cent from the present level of ISO 
per cent from July I. Most 
Imported cars come from Japan. 

“We hope it will be very good 
news for us because imported 
cars will be very expensive,” said 
Mr Joaquin Roa. VMC general 
manager. 

The impact of the higher tax 
would depend, however, on effec- 
tive policing of the borders to 
prevent smuggling. 

Vietnamese officials reportedly 
said the higher taxes were 
designed to support the Mekong 
and VMC operations, both of 
which produce below capacity. 


Italy's Berlusconi government 
was studying ways yesterday to 
resp ond to a constitutional court 
decision that threatens to add 
L30,000bn ($20bn) to this year's 
spending on pensions. 

The cost estimate by Mr de- 
menti Mastefla, fte labour minis- 
ter, followed a court ruling that 
the government was liable for 
arrears dating from 1983. The 
arnimiTipgTnpnt Jed to an immedi- 
ate fall in Italian government 
braid prices. 

If tiie amount has to be paid in 
full, it would have a serious 
effect on public finances and 
undermine calculations on the 
need for a pre~snmmer mini-bud- 
get and for the preparation of the 
1995 budget 

Last Friday, th* constitutional 
court ruled on a longstanding 
case brought by pensioners who 
claimed to have been denied 
proper state pensions dating back 
to 1983. 

The court ruling obliges the 
government to make good the dif- 
ference between the reduced ben- 
efits and the full pension entitle- 
ment d enie d as of 1983. As many 
as 600,000 people may be 
involved. 

Initially it was tho ught that the 
one-off cost of funding arrears 
would be L6£00bn - but at the 
weekend the estimates were 
revised sharply upwards. It is 
also thought that the additional 
annual burden after the payment 
of arrears would be more than 
LGOObn. 

The court’s de cisio n is a fur- 
ther example of courts giving 
favourable interpretations to 
actions brought in defence of 
pensions, so helping to make 
Italy's state-run system the most 
costly and deficit-ridden in 
Europe. The government will 
frn/i n HifFrnb to circumvent the 
ruling. 

The derision comes as economy 
ministers are weighing the need 
for a mini-budget before the sum- 
mer recess to hold the public-sec- 
tor deficit to about Ll&UJOObn. 
That compares with the original 
estimate of Ll45.000bn, equiva- 
lent to 8.7 per cent of GDP. 

The previous Clampi govern- 
ment bad indicated that a mini- 
budget was needed to find some 
L7,000bn to UO.OOObn in a combi- 
nation Of sp ending cuts and extra 
revenues. 

However, Mr Giancarto Pagliar- 
ini, the budget minister, said yes- 
terday he believed the mini-bud- 
get need raise no more than 
L5,000bn. Some in the cabinet 
want to avoid a mini-budget alto- 
gether, to encourage a timid eco- 
nomic recovery and concentrate 
efforts on the 1995 budget 

If the government has to pay 
the pension arrears, then a mini- 
budget would be inevitable. 
Given prime minister Silvio Ber- 
lusconi’s stated aversion to rais- 
ing taxes, he would rely mainly 
on spending cuts. 


FT WEATHER GUIDE 


Europe today 


A strong ridge of high pressure from the 
Atlantic to western Europe wUI expand 
eastwards. The British Isles, the Benelux, 
France and Spain wiH be dry but relatively 
cool, though south-east England wUI reach 
20C. However, central Spain will have tropical 
conditions. Further east, thundery showers 
win erupt In unstable air over the Alps, Italy, 
Greece, and the Balkans. Rain will sweep 
across parts of eastern Europe and north- 
western Russia, keeping temperatures 
generally below 20C. Low pressure just off 
northern Scandinavia will efraw cool and 
unstable air into Norway, with frequent 
showers In the west of the country. Finland 
and Sweden wHI have sunny spells with just 
the odd shower. 






. _■ >y-' 


'.L ;* ; v f?! 'I ... t *. 






...... 

\a y 






Five-day forecast 

A strong westerly current over the northern 
Atlantic wiH give cloud and showers In 
Scandinavia. Meanwhile, relatively weak 
fronts wUI cross much of the rest of Europe. 
Temperatures will be generally around normal. 
Many parts of the Mediterranean will be more 
settled. Showers In Italy wW end on 
Wednesday, followed by dry and sunny 
weather. 














» '2 S'; "* '■ :*V- 




! Warm front 


Wind speed tn KPH I . 




m&i 


TODAY'S 


Situation at 12 GMT. Tampamtuma maximum tor (Jay. Foncssts oy Matao Consult of Bn N o t horlanta 


Abu Dhabi 

Accra 

Aigfan 

Amsterdam 

Athens 

Atlanta 

B. Afros 

Sham 

Bangkok,. - 

Barcelona 


Maximum 
Celsius 
aun 40 
ahower 30 
aun 27 
fair 20 
thund 31 
fair 33 
far 18 
fair 18 
cloudy 34 
sut 26 


Chasm 

Cadre 

Cape Town 


fair 

30 

C8TBC88 

shower 

25 

F»o 

Ur 

16 

CartSff 

fair 

16 

FranWwt 

Showar 

23 

Casablanca 

doudy 

23 

Geneva 

Ur 

22 

Chicago 

cloudy 

32 

Gibraltar 

sun 

27 

Cologne 

fair 

22 

Glasgow 

rein 

19 

Dakar 

sun 

2/ 

Hamburg 

idn 

28 

Dallas 

fair 

34 

HeteWd 

Ur 

22 

Delhi 

shower 

39 

Hong Kong 

ahower 

2i 

Dubai 

sun 

39 

Honolulu 

fair 

23 

Dublin 

ft* 

19 

Istanbul 

aun 

40 

Dubrovnik 

shower 

27 

Jakarta 

Mr 

20 

Edinburgh 

fair 

10 

Jeraey 



Lufthansa 

German Airlines 


KWacN 

Kuwait 

L Angelos 

Las Patinas 

Lima 

Lisbon 

London 

Uechourg 

Lyon 

MatWa 


an 

28 

Madrid 

sin 

32 

Rangoon 

dower 

31 

fair 

23 

Majorca 

ft* 

25 

Reyigavfc 

rdn 

10 

fair 

25 

Malta 

ft* 

26 

Ho 

fair 

24 

an 

22 

Manchester 

ft* 

IB 

Rome 

thund 

25 

Ur 

13 

Mania 

Cloudy 

33 

S. Freco 

sun 

22 

Mr 

19 

Melbourne 

fair 

12 

Bead 

fair 

28 

Mr 

17 

Mndco C&y 

fair 

23 

Singapore 

doudy 

32 

rain 

29 

Miami 

fair 

33 

Stockholm 

Hr 

22 

fair 

30 

Mian 

fair 

28 

Strasbourg 

fair 

22 

Shower 

27 

Montreal 

thund 

27 

Sydney 

cloudy 

17 

doudy 

32 

Moscow 

fair 

19 

TangJar 

windy 

27 

aui 

17 

Munich 

ft* 

23 

Tel Aviv 

tun 

34 

sun 

38 

Naked 

shower 

26 

Tokyo 

shower 

28 

aun 

43 

Naples 

ahower 

24 

Toronto 

shower 

27 

sin 

28 

Nassau 

duid 

30 

Vancouver 

ahower 

17 

ft* 

25 

New York 

sun 

31 

Venice 

Mr 

23 

fair 

20 

Nob 

fair 

22 

Vienne 

fair 

20 

sun 

30 

Nicosia 

sun 

34 

Warsaw 

fair 

19 

Ur 

22 

Oslo 

fair 

22 

Washington 

fak 

32 

aun 

23 

Parts 

fair 

23 

WaHngton 

doudy 

7 

fair 

23 

Perth 

doudy 

18 

Winnipeg 

aftoMr 

22 

fair 

20 

Prague 

fak 

20 

Zurich 

fair 

23 



THE LEX COLUMN 


Fiscal fears 


It would be dangerous to read too 

much into yesterday's steep falls in 

UK equities and gilts, given the km 
tr a din g volume in both markets. 
Financial markets have a lot to con- 
tend with just the «ttip Not only have 
thA dtampolntfag results for tiu* gov- 
ernment in the Euro-elections given 
rise to demands for tax cuts, there is 

m u ri ng- mwaw rm the inflation front, 
ton The latest producer price figures 
look fine as for as out p ut prices are 
concerned. Input prices, however, 
have stopped fan mg on a year-on-year 
basis, which is bound to add to ner- 
vousness ahead of Wednesday's aver- 
age earnings figures. 

Since November's budget, the policy 
balance involved a combination of 
relative fiscal tightness with monetary 
looseness. The political temptation 
now might be to alter that mix, espe- 
cially since growth looks set to keep 
the public sector borrowing require- 
ment moving dow n wards. Presumably 
more votes are to be gained by scrap- 
ping the next increase in VAT on fuel 
than would be lost by raising base 
rates, especially given the proportion 
of voters who either have fixed rate 
mortgages or still depend for income 
on building society deposit accounts. 

This week’s Mansion House speech 
may yield some due about the chan- 
cellor’s thinking Given presort fund- 
ing difficulties, the gilts wadwt would 
probably respond badly to a softer line 
on taws In theory, bi^hw economic 
growth means equities should have 
less to fear. But what would be billed 
as tax cuts might simply be tax 
increases foregone, while evidence of 
another volte-face by a beleaguered 
government would hardly instil confi- 
dence in any market. 


FT-SE Index: 3016.3 {-39.6j 


Christian SahraMn 


Start price fstathw to the 
FT-SE-AAB-Sbara bxfax 

140 — - — A' 



1882 

Source: FT Grephta 


is a wide spread of performance 
between, small private client stockbro- 
kers and the biggest integrated firms. 
But given the weak performance of 
equity markets this year, most firms 
will be bard pressed to match their 
1993 performance. Dealing profits, 
which account for the biggest swing? 
in revenue, will be especially hard to 
crane by. 

It is difficult to judge whether Lon- 
don is notably more or less profitable 
than other markets, (to a broadly com- 
parable basis. New York Stock 
Exchange firms made a 17 par cent 
return on capital last year. Yet profit- 
ability in the previous two years 
appears to have been higher than 
achieved in London. The danger must 
be that London firms allow their costs 
- especially staff costs, which account 
for almost half the total - to be set in 
markets which can better afford to 
pay. 


more understandable. As a spectattnd 
business, Aggreko might generate 
high quality earnings, but that would 
not warrant a premium rating. Sa)tv- 
esen's present multiple or 13 times 
earnings does not make the sham 
particularly cheap. 

Salvesen may feel bruised by tin 
market’s reaction to its statement, but 
a re-rating was inevitable given Inves- 
tors’ chang in g perception of lang-tasn 
growth prospects. Certainly yester- 
day's statement held out little promise 
of a rapid rebound in earnings despite 
the improving economic cllTnata T be 
Swift industrial distribution business 
hre m i yfo a promising start, but Its 
profit base is relatively small Having 
chosen to renegotiate its complex 
arrangement with Marks & Spencer At 
a when interest ram are low, 
Salvesen can no longer look forward 
to the benefit of rising rates. Manage- 
ment would describe the renegotiation 
of this archaic arrangement as good 
housekeeping. Quite so, but it will 
need more than that to out-perform. 


Stock exchange 

On the surface, profits notched-op 
by stock exchange member firms last 
year look respectable enough. If 1993 
proves to be a year of peak profits, 
though, a 20 per »nt pre-tax return on 
capital is hardly an compen- 

sation for the risks. The market has 
recorded one year of a ggrega t e losses 
and three years of single-figure 
returns on capital in the last five. 
Even if hurdle rates are being reduced 
in response to lower inflation, inves- 
tors would normally demand more 
foam *nch a volatile business. 

True, the overall numbers can be 
m reloading Around 15 to 20 per cent 
of firms are likely to make losses even 
when the market is booming, which 
depresses the aggregate return. There 


Salvesen 

Christian Salvesen's 27 per cent foil 
against the market since January's 
profits wanting lories overdone in the 
context of a fall of just 2 per cent in 
annual profits. It might thus be seen 
as an example of how the market over- 
reacts to the kind of prompt trading 
statement now being urged by the 
stock exchange in situations where 
traders’ expectations lose touch with 
reality. But the January statement 
highlighted difficulties with the 
Aggreko plant hire business, which 
was supposed to be an important 
engine of longer-term growth. Since 
Salvesen is now determined to focus 
on Aggreko 's margins rather than vol- 
ume growth, tiie market’s response is 


Amstrad 

The Viglen acquisition is the latest 
and clearest expression of AmstratTs 
new strategy. Gone are the days of 
piling gadgetry high and selling it 
cheap, which made chairman Mr AJan 
Sugar famous. Margins on that busi- 
ness are wafer Utin. Instead, the group 
is using its to acquire com pari— 
in higher margin niche markets. One 
of the attractions of Viglen is that it 
supplies personal computers direct to 
customers, cutting out middle men. - 

Simultaneously Amstrad Is 
itself into a holding company. Then 
are so far four divisions its original 
consumer electronics business; Bate* 
com; DancalL bought last year; and 
now Viglen. Further acquisitions seam, 
probable given that Amstrad will stiQ. 
have cash after paying for Viglen. 

Viglen looks tike a risky purchase. 
Though its executives have built it 
into a well-regarded business, their 
golden handcuffs will last only three 
and a half years. It is hard to see what 
competitive advantage Viglen will 
retain, if and when they leave. Nor is 
it obvious that Mr Sugar's proven 
gkflfe as a mass marketeer can add 
much to a niche player like Viglan. 
His personal involvement is lees 
important than it was. The Implemen- 
tation of the new strategy will largely 
depend on the business acumen of Mr 
David Rodgers, due to join as chief 
executive in August and about whan 
the stock market so for knows little. 


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FINANCIAL TIMES 


COMPANIES & MARKETS 


©THE FINANCIAL TIMES LIMITED 1994 


Tuesday June 14 1994 


Bryant 



Invest in Quality 


HOMES 'PROPERTIES -CONSTRUCTION 
021 711 1212 



IN BRIEF 


Sprint nears 
telecoms 


France Telecom and Deutsche Telekom, the state 
telecommunications operators, are set to announce 
an enlargement of their international alii**™ 

Sf ly t0 tacta * a cooperation agreeinent 

with the US operator Sprint. Page 26 

Swiss foothold for Allianz 



w iu yra iij, iud ptuieirciLea tne mgrny regulatet 
Swiss insurance market with the acquisition 
of a 30 per cent stake in Switzerland's Berner 
Holding. Page 26 

Trans World prote a t s at Emap plan 

Directors of Trans World Communications, the 
UK commercial radio group, have sought legal 
advice after Emap. the media and exhibitions 
group, said it planned to buy 22 per cent of the 
company. Page 26 

Takeover of Malaysia Airlines proposed 

A leading Malaysian entrepreneur has proposed 
a takeover erf Malaysia Airlines (MAS). The highly- 
leveraged deal would see Mr Tajudin Ramli take 
a amtrolling 32 per cent stake in MAS for MSl.79bn 
(U5$718m). Page 28 


Ottle soars 882% 

The China International Trust and Investment 
Corporation (Citic) reported an 882 per cent 
increase in profit in 1993 to Yn3.35hn (US$390m), 
but its a nnual report provided only sketchy details 
of how it achieved this leap. 

Page 28 

Resignation at Fokus Bank 

The m a n a gin g director of state-owned Fokus 
Bank, Norway’s third largest commercial hanir, 
has resigned following revelations of alleged irregu- 
larities connected to the disposal of a property 
shareholding. Page 29 

Christian Satvesen slips to £ 74 m 

Christian Salvesen, the UK distribution and special- 
ist hire group, reported its first downt u rn in animal 
operating profits since the 1970s with the pre-tax 
figure slipping from £75 3m to £74. lm ($ii2m) 
for the year to March. Page 31 

South African trust for UK 

Old Mutual, the life company which is South 
Africa's largest institutional investor, is to launch 
the OK's first South African investment trust. 

The fund's managers say South Africa combines 
the growth potential erf an emerging market with 
the developed infrastructure of an advanced indus- 
trialised economy. Page 32 

Royal Bank adds to US arm 

Royal Bank of Scotland has announced an addition 
to its fast-growing US retail hanking subsidiary 
Citizens Financial Group with the proposed (139.9m 
acquisition of the Massachusetts-based Quincy 
Savings Bank. Page 33 

Sweet and sour 

The Indian federal government faces political 
crisis because it failed to recognise in time the 
extent of shortfall in sugar production in the 
current season and arrange sufficient imports. 

Page 34 


Market Statistics 


(Annual reports service 36-37 

Benchmark Gout bon* 30 

Bond buses and options 30 

Bond prices and jrtekta 30 

Ctnaiodiiies prices 34 

DMdemfc; announced, UK 31 

BIS currency rates « 

Eurobond priras 30 

Rued ntereei indices 30 

FT-A World Indices Beck Page 
FT Gold Mtan Max BackPage 
R/ISMA tad tend wc 30 

FT-SE Actuaries tatfees 35 


Foreign exchange « 

easspttaK 3d 

Uffe equity options Back Page 
London share service 36-37 

London trad options Back Page 
Managed funds service 36-42 
Money martaes 42 

New tad bond Issues 30 

Recent Issues, UK 35 

Short-term tat rata 42 

IS Merest rates 30 

World Stock Markets <3 


Chief price changes yesterday 


FiUNKnJKTPMl 

Mom 

GOUsc&nU 715 


15 


sue 


700 


20 


BASF 306.1 - 69 

Dflinfcr Bam 747 - 28 

Owtacta Gab 237-7.5 
NAN 398 - 135 

Pnm8tg 4* - M3 

lUV YORK (S> 

Atom 74%* + 1W 

tons amp 3itt + ft 

Ovy V* 47!* * 1 

UPam 63ft * 1 st 

Wt 1l9»i + W 

Mi 

Coca'GUa 38U - IK 

tWOSpRI 

Now VoM prices at 1230pm- 
UMMNPmM 


Akita* 771-26 

Afcatd 620 - 23 

Fonc Ljm 801-47 

laeW 5 *3-17 

Vafec 3*0.1 - 152 

TOKYO (Van) 


Rfspn 

tssM 5-Co 

JSX. 

KpxtoShfco 

NtapmSoda 


573 

502 

887 

6*8 

508 


KhUHNUB 

in 

4 

6 

Wane 

31 

4 

Eft 

UnmeBm 

158 

4 

10 

*ta*! naps 

31 

+ 

3’i 

muw 

*B 

+ 

3 

Batman 

255 

* 

B 

unco 

45 


5 

few 

fefe 

55 


5 

BBT M 

419 

_ 

13 

feWa Santee 

64 

- 

8 


508 

- 

25 


flomwn 


alien's 

Dtnra 

BdM 

Em Fmtan 

BnuntUi 

HsntaomlV 

Jsvls 

flMC 


57B - 17 


HQwP 

wan 


roe - 

187 - 

300 - 

223 - 

324 - 

53 - 

13* - 

an - 

83 - 

380 - 


334 

6 

15 

15 

18 

0 

3 
21 

4 
13 
ID 


■ Cosmetics group pays FFr9bn for four of its international distribution companies 

L’Oreal and Nestle move closer 


By lan Rodger In Zurich 
and John RidcSng to Paris 

L’Orfcal, the world’s largest 
cosmetics group, yesterday 
announced that it was paying 
FFrfUttm ($I-53bn) for four of its 
distribution companies that are 
controlled by Nestlg and Mrs Lal- 
iane Bettencourt, daughter of 
L'OrgaTs founder. 

The transactions, which will 
yield FFr-L8bn in cash to Nestle, 
appear to increase the likelihood 


that the Swiss foods group will 
one day win control of L'OreaL 

In April, L’Ortal announced 
that Nestlfe and Mrs Bettencourt 
had agreed to its wish to take 
over the distribution companies, 
based in the US, Canada, Switzer- 
land and Spain. 

In aggregate, Nestfo’s interest 
in these companies was slightly 
over 50 per cent The rest was 
hp )d by GesparaL a holding com- 
pany set up 20 years ago to 
enable the Swiss group to take a 


Deal yields FFr4.8bn for Swiss food company 


2 5 per cent stake in L’Or&al. 

Mrs Bettencourt's 51 per cent 
stake in L’Or&al was put into 
Gesparal and Nestl§ was sold a 49 
per cent stake in the new holding 
company. Under an agreement 
between the two Gesparal share- 
holders, each gave the other first 
refusal on their shares, leading to 
occasional speculation that Nes- 
tl£ would take over the cosmetics 


group. 

The agreement expired in 
March, but Nestle claimed that 
the contract provided for the 
right of first refusal for both 
sides to continue for many years. 

For its part, L’Oteal reiterated 
that Mrs Bettencourt had always 
indicated that she would “retain 
majority control during her life- 
time". It also pointed out that Mr 


Helmut Maucher. Nestle chair- 
man. regarded its stake in L'Or- 
eal as strategic. 

The distribution companies are 
to be sold to L’Oreal at a price 
based on the aggregate value of 
their sales in tbe year to April 30. 
subject to the approval of an 
extraordinary shareholders’ 
meeting due to be held in the 
autumn. Gesparal will take its 


compensation in the form of 
3.27m new L'Oreal shares at 
FFrl.225, thus raising its stake in 
L'Oreal from 51.04 per cent to 
53.65 per cent Once the Gesparal 
transaction is completed. Nestle 
will be paid its share. FFr4. 78bn, 
in cash. 

Mr Edouard de Boisgelin, ana- 
lyst at Merrill Lynch said the 
deal should have a positive 
impact on earnings and would 
strengthen L'0r£aTs presence in 
international markets. 


Companies hi this Issue 

AHottz 

26 Ladtxoke 

20 

BA 

32 LMngwefl Health 

32 

Banner Homes 

33 Uoyds Bank 

25 

Berner 

26 Uoyds Chemists 

32 

British Steel 

32 L’Orfal 

35 

Braadgsta Properties 

20 Macy 

27 

C&G 

25 Malaysia Aifines 

28 

Cemlg 

27 Medobanca 

27 

Christiania Bank - 

29 Moulinex 

25 

Citic 

28 Nesttt 

2S 

Cropper (James) 

32 Old Mutual 

32 

CuDen’s 

32 Orifteme Inti 

33 

Deutsche Telekom 

26 Pent 08 

33 

Dixons 

S3 Prospect Inds 

33 

Echo Bay 

27 Quincy Savings Bank 

33 

Emap 

26 Royal Bank Scotland 

33 

Fine Decor 

20 Rutxgaa 

26 

Fokus Bank 

29 SGS-Thomson 

27 

Foschini 

29 Saudi Invastmt Bank 

28 

France Telecom 

26 Shanks & McEwan 

33 

Hemingway Props 

32 St Modwen Props 

32 

K2 

33 Thaioa 

28 

Jarvis 

32 Trinity Hokings 

32 

KPN 

25 Umeco 

32 

Kemlra 

26 Urndare 

33 

Klfickner 

29 Wellcome Trust 

25 


Wellcome 
Trust to 
try venture 
capital 

By Norma Cohen, 

Investments Correspondent 

Wellcome Trust, the US’s largest 
charitable trust, is seeking to 
persuade the UK Charity Com- 
mission to approve a trustees’ 
decision to put £100m (5150m) 
into venture capital projects. 

It appears the trust would like 
to invest in US-based venture 
capital projects. The move, 
which might take op to three 
years, would place 2 per cent of 
the roughly £5-5bn erf assets into 
venture capital, and would be a 
fillip for the sector. 

Permission is not legally 
required, but the trust would be 
uncomfortable with an invest- 
ment which regulators might be 
unhappy about. Sir Roger Gibbs, 
director of the trust, said. In 
July 1987, it secured legal per- 
mission to engage in a variety of 
investment activities, including 
venture capital, he said. 

Sir Soger, in explaining the 
move to venture capital, said: 
“We believe it imperative to pro- 
tect tiie capital value of our fund 
whilst at tiie same time generat- 
ing a sizeable income for the 
benefit of medical research.” He 
said income from investments 
was expected to generate more 
than £220m this year, more than 
enough to meet the trust’s com- 
mitments. 

The average UK charity has a 
“negligible” exposure to venture 
capital, while the average UK 
pension scheme has less than 1 
per cent of assets in the sector, 
says WM Company, a perfor- 
mance measurement service. 

Venture capital is considered 
more risky than investment in 
securities although potential 
returns are higher. The projects 
are more speculative and the 
investments illiquid, depending 
an either a trade safe or a flota- 
tion for investors to realise a 

gain. 

The commission said on Friday 
that while it had no specific 
roles barring venture capital 
investment, charities could 
invest only in areas set out in 
their trust deeds. Venture capital 
is an unusual investment for a 
charity because it is unlikely 
immediately to generate the cash 
most charities require. 

There is concern that the com- 
mission may view venture capi- 
tal investment as engaging in a 
trade or business, activities for- 
bidden to charities. However, 
advisers to Wellcome Trust 
believe it has a strong case for 
venture capital investment. It 
has ample cashflow to meet its 
charitable objectives, which 
involve funding research in the 
bio-medical field. Some money 
could be invested in bio-technol- 
ogy companies which commer- 
cially exploit scientific research. 



John Gapper talks to Sir Brian Pitman about 
the hitch in the UK bank’s £1.8bn takeover bid 

Knight 
cheerful 
despite 
sniping 

O n his first working day as 
a knight. Sir Brian Pit- 
man had lost none of the 
ebullience of bis last weeks as a 
commoner. Since he disclosed in 
April that Lloyds - the big UK 
bank - had bid £18hn ($2.7bn) to 
take over Cheltenham &’ 

Gloucester Building Society, he 
has Insisted that the deal will not 
be scuppered. 

“In my experience, it would be 
very unusual if two boards of 
directors are determined to get 
together, and there are clear ben- 
efits to customers and sharehold- 
ers, that they cannot complete 
the deal," he said yesterday. C&G 
is revising the terms of the offer 
barred by the High Court 
That has been the judgment of 
the London stock market sinry 
last week's court riding: Lloyds’ 
shares have hardly wobbled- But 
this has baffled analysts. “If I 
was a fund manager, 1 would be 
selling tbe shares aggressively." 
said Mr Neil Baker, banks ana- 
lyst at Credit Lyonnais Laing. Mr 
Baker argues that Lloyds’ shares 
will be “very over-valued” if the 
bank fails to achieve the pro- 
posed acquisitions. 

ft would be the third big set- 
back to Lloyds' acquisition strat- 
egy. The bank was rebuffed in its 
1986 attempt to take over Stan- 
dard Chartered with a mixture of 
preference shares and cash, and 
in its “proposed” £3.7bn bid for 
Midland Bank using ordinary 
shares and cash two years ago. 

The confidence of Uoyds' chief 
executive has not wavered. Sir 
Brian said that “from the think- 
ing I have seen” it would be pos- 
sible for C&G to devise a new 
scheme that would comply with 
the law. “The Building Societies 
Commission will want to go 
through whatever is proposed, 
but I am hopeful that a scheme 
can be devised that they find 
acceptable." 

Yet Lloyds could face a sharp 
reversal erf fortune if tbe C&G bid 
were eventually blocked, by regu- 
latory constraint or a failure to 
persuade enough members to 
vote for it This would not simply 
be because it would look acci- 
dent-prone in tailing to consum- 
mate large bids. 

The C&G purchase answers 
two difficulties for Lloyds. One is 
that its UK retail banking busi- 
ness has been growing very 
slowly. There is little demand for 
loans, and It has already 
exploited the easiest opportuni- 
ties to sell other products such as 
life insurance to its customers. 

The second is that it provides a 
way for Lloyds to use excess capi- 
tal more profitably than simply 


Sir Brian Pitman: T am hopefhl that a scheme can be devised 


Tory Andrew 


investing it in money markets. 
Without a C&G into which to 
plough its surplus earnings, 
Uoyds would lace pressure from 
shareholders to come up with an 
alternative. 

Uoyds’ attempts to grow by 
acquisition foil into three catego- 
ries: 

• Small agreed purchases of 
niche players. Examples include 
its 1984 purchase of Schroder 
Munchmeyer Hengst, a German 
private bank, and its acquisition 
last year of the Agricultural 
Mortgage Corporation for £27m. 
Sir Brian argues that such pur- 
chases exemplify Lloyds' strategy 
“of selective market leadership". 

• Large hostile takeovers, such 
as the tilts at Standard Chartered 
and Midland. Sir Brian defends 
the logic of both deals. Yet his 
appetite for hostile deals appears 
to have been diminished by tbe 
Midland affair. Other Uoyds 
directors were disturbed at the 
controversy it created. 

• Medium-sized agreed deals. 
The obvious example, apart from 
C&G, is the move which saw 
Uoyds swap a set of businesses, 
including estate agencies, for a 
57.6 per cent stake in Lloyds 
Abbey Life in 1988. This also bol- 
stered its retail banking. 

Analysts differ on what sort of 
deal Uoyds might seek if it was 
left with its £l-8tm after being 
jilted by C&G members. A fresh 
large hostile bid seems to have 
become less likely. But Uoyds 
would have to buy a lot of niche 
players to spend its money. 


One possibility would be a pri- 
vate han k or fund manager. This 
could help to meet demand for 
alternatives to savings deposits. 
But Mr Chris EQerton, an analyst 
at S.G. Warburg, says it would 
cost more and involve more risk 
because "you would be buying 
people rather than net assets”. 
Mr John Aitken, an analyst at 
UBS, suggests that Uoyds might 
even be driven to a revolutionary 
move — giving fly* money back to 
shareholders in a special distri- 
bution. 


KPN beats market 
on its first day 


By Ronald van de Krol 
in Amsterdam 

Koninkffike PIT Nederland, the 
partially privatised Dutch tele- 
communications and postal com- 
pany, staged a moderate rise on 
its first day of trading on tbe 
Amsterdam Stock Exchange yes- 
terday. 

The shares, priced at FI 49.75 
last week, opened at FI 5050 and 
quickly rose to a high of FI 50.70 
before falling back to close at 
FI 50.20. 

The premium was more pro- 
nounced for private investors, 
who had been offered a discount 
of FI 2^0 per share up to a maxi- 
mum of 75 shares as an incentive 
to take part in the largest share 
launch in Dutch history. Nearly 
60 per emit of the shares an offer 
were taken up by foreign institu- 
tional investors. 

Trading was active, with more 
than 17m shares chang in g hands, 
a new record for a day’s trading 
in one stock in Amsterdam. Tbe 


rise in KPN’s shares ran counter 
to yesterday's lower trend for 
Dutch equities. 

The government of the Nether- 
lands sold 138.15m KPN shares - 
a 30 per cent stake - raising 
F1 6-9bn (53.7bn). A second 
tranche of KPN shares is expec- 
ted to be sold by the end of 1997. 

The European Options 
Exchange in Amsterdam also 
launched options trading in KPN 
yesterday, the first time In the 
Netherlands that options and 
equity trading in a new issue has 
taken place simultaneously. 

The share issue was nearly 
three times subscribed. Applica- 
tions from private shareholders 
were honoured in foil up to 75 
shares, with a sliding scale for 
any individual applications above 
this level. Some 188,500 private 
shareholders took part, of whom 
31,000 were KPN employees. 

Allotments to institutional 
investors varied, based on the 
judgment of the underwriting 
banks. 


Moulinex losses deepen 


By John Rfddmg in Paris 

Moulinex, the French household 
appliances group, suffered a net 
loss of FFr598m (5104m) last 
year, a sharp increase from 
losses of FFr4lm the previous 
year. 

The company, which is being 
refinanced, said the results for 
tbe year to tiie end of March 
included a FFri85m restructur- 
ing charge, a FFr13 2m charge 
relating to write-downs of 
research and development 
investment and a FFrl70m provi- 
sion for product and customer 
risks. 

The refinancing package 
includes a FFrlbn rights issue, 
the details of which are being 
finalised. 


Moulinex said that negotia- 
tions with Euris, an investment 
consortium which Is planning to 
take a substantial stake, could 
be completed by the end of this 
month. 

Secession in many of the 
group's main markets in western 
Europe and the impact of 
exchange rate fluctuations also 
affected the results. Export sales 
outside Europe rose strongly, 
bowever, limiting the decline in 
sales to Just 2.3 per cent to 
FFr8. lbn. 

Moulinex said it bad cut inven- 
tory levels and reduced capital 
expenditure to FFr230m, from 
FFr569m. These measures, com- 
bined with a reduction in the 
workforce, enabled a fall in 
debts to FFr2.4bn. from FFr3 bu. 


Am strad enters direct PC 
sales with £ 60 m purchase 


By Paid Taylor hi London 

Amstrad, the UK-based consumer 
electronics group run by Mr Alan 
Sogar, has agreed to pay around 
£6Qm I59tm) in cash to acquire 
Vlgten, a private company which 
builds and sells personal comput- 
ers directly to its customers. 

The deal marks a change in 
direction for Amstrad which has 
seen its own PC sales and profit s 
tumble in the face of growing 
competition. 

Mr Sugar, Amstrad 's chairman 
and founder, said the acquisition 
would add "an exciting new 
dimension” to the group's busi- 
nesses. Amstrad's shares closed 
up y«p at 3l%p. 

Viglen ranks about third in the 
UK direct PC sales arena with 
about 7 per cent of a market 
which last year accounted for 
about one third of all PC sales. 
The group posted pre-tax profits 


before directors’ emoluments and 
exceptional items of £9m in the 
year to March 31, from £7 An. on 
turnover of £72m, up 33 per cent 

Mr Sugar said gross margins at 
Viglen were around 25 per cent 
Amstrad is acquiring assets 
worth £i3.6m. Under the terms of 
the deal, which is subject to 
Amstrad shareholder approval, 
the group will pay £30m in cash 
initially and a further £30m over 
tbe next three years subject to 
Viglen’s profitability. 

If Viglen’s p rofit s exceed £27m 
over the first three years the ven- 
dors - five members of Viglen’s 
manag ement team - wifi receive 
a share of the additional profits. 

Amstrad will finance the acqui- 
sition using part of its cash 
reserves. 

Mr Sugar said Viglen will con- 
tinue to operate as "an autono- 
mous unit” within his group and 
will maintain its management 


structure, selling methods, prod- 
ucts and customer service. The 
Senior Tnanagemeitf is being 
“locked in” with new contracts 
for a minimum of 42 months. 

Mr Sugar said the Viglen acqui- 
sition would provide a new 
source of profits and growth for 
the group and the price repre- 
sented a price/eamings multiple 
of 10. "The acquisition provides 
Amstrad with the opportunity to 
purchase a fost-growing business 
which both complements and 
strengthen^ Amstrad’s existing 
business,” he said. 

Mr Sugar originally ap- 
proached Viglen in October and 
shareholders had been persuaded 
that a sale to Amstrad was a bet- 
ter alternative to a flotation. Mr 
Sugar grid the sale would enable 
Viglen to expand its production 
facilities and accelerate order 
delivery schedules. 

Details, Page 31; Lex, Page 24 


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Range of information . 









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So, at Kleinwort Benson Securities, we are constantly scanning markets, 
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Our award winning research analysts cover all the main business sectors. 
Our market makers proride up to the minute market intelligence, 
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Kleinwort Benson 
Securities 


ISBJB} BY KLSNWQHT SM 50 N SECUWTES UMTTHX 
X FEMCHUROi STXST LOWJON ECtf JOB. 
THE STOCK EXCHANGE. Of THE 5 FA AW? D 1 A 



FINANCIAL TIMES TUESPAV JUNE 14 1$94. 


26 


INTERN/ 

Sprint set to join France, 
Germany in telecoms pact 

By Andrew Adorris (n London multinational companies. venture, called Unisource 


INTERNATIONAL COMPANIES AND FINANCE 


By Andrew Adonis In London 

The French and German state 
teleconunonicatians operators 
are set to announce an enlarge- 
ment of their international alli- 
ance today, which is believed 
likely to Include a co-operation 
agreement with the US opera- 
tor Sprint 

Sprint the third largest US 
long distance telecoms carrier, 
has been in negotiations with 
France Telecom and Deutsche 
Telekom since the spring about 
an alliance geared to the inter- 
national business telecommu- 
nications market 

The talks have extended to 
the terms on which the French 
and German carriers might 
inject capital into Sprint in 
return for its co-operation in 
the development of joint inter- 
national telecoms services for 


multinational companies. 

France Telecom and Deut- 
sche Telekom formed an 
EctUhn ($L16bn) alliance last 
December geared to integrat- 
ing their international data 
telecommunications networks. 
In September the two state- 
owned operators launched a 
joint venture - Eunetcom - to 
exploit the international “out- 
sourcing” market, estimated 
by analysts to be worth about 
Slhn a year. 

The Franco-German link-up, 
which has still to he sanc- 
tioned by the European Com- 
mission, followed the si gning 
of a S5.3bn deal between Brit- 
ish Telecommunications and 
MCI. the second largest US car- 
rier, last June. 

The state operators of Swit- 
zerland. Sweden and the 
Netherlands also have a joint 


venture, called Unisource, 
aimed at the international tele- 
coms market. Unisoorce has 
been in talks with AT&T, the 
largest US carrier. 

Executives of the French and 
German operators have been 
seeking a US partner for their 
international activities for 
more than a year. They were in 
talks with MCI before the BT 
deal 

Compared with the domestic 
revenues of the French and 
German state operators, the 
international “outsourcing” 
market Is tiny. But the EU's 
state operators fear that as lib- 
eralisation of EU telecoms ser- 
vices Is completed by 1998, 
they stand to lose significant 
revenues unless they can offer 
larger corporate customers 
“seamless” international net- 
works with cost savings. 


Record for UK securities firms 


By Norma Cohen, 

Investments Correspondent 

Last year was the most 
profitable for the UK securities 
industry since record keeping 
began in 1988, with revenues 
rising by 53 per cent, the Lon- 
don Stock Exchange said yes- 
terday. 

Return on capital was also at 
its highest level, with an aver- 
age return of 20 per cent 
recorded. In 1992. the average 
return was only 3 per cent. 

In its Quarterly Report, the 
exchange said its member 
firms compared favourably 
with those of the New York 
Stock Exchange, where aver- 


age return on capital was 17 
per cent. However, the data are 
not strictly comparable. 

But tiie survey of profitabil- 
ity notes some worrying 
trends, particularly the growth 
in costs. Overall, firms' 
expenses for the year rose by 
15 per cent However, the pace 
quickened in the second half of 
the year when new issue activ- 
ity and turnover reached 
record levels. 

In the third quarter, 
expenses rose by 18 per cent 
and by 34 per cent in the 
fourth quarter. Salary costs 
showed the most marked 
increase, rising 95 per cent 
over 1992, partly reflecting the 


effects of profit-related 
bonuses. By the fourth quarter 
of 1993, these bonuses 
accounted on average for 29 
per cent or salary costs, up 
from less than 10 per cent in 
the first quarter. 

The exchange said its 
research showed the largest 
and the smallest firms were 
the most consistently success- 
ful Of the smallest firms, with 
less than £5zn ($7.5m) in capi- 
tal. 80-83 per cent were in 
profit in each of the four quar- 
ters of 1993. All the firms with 
capital of more than £150m 
were profitable during the first 
three quarters. 

Lex, Page 24 


Emap faces battle for Trans World 


By Raymond Snoddy 
n London 

Directors of Trans World 
Communications, the UK com- 
mercial radio group, yesterday 
sought legal advice after 
Emap, the media and exhibi- 
tions group, said it planned to 
buy Mr Owen Oyston’s 22 per 
cent stake of Trans World. 

Mr Oyston, a millionaire 
businessman, has agreed to 
sell his stake at 181p a share if 
an offer is made to Trans 


World shareholders between 
now and June 22. Emap, which 
already owns nearly 30 per 
cent of Trans World, is se eking 
a recommended offer at 18lp 
valuing the group at around 
£70m (8116m). If agreement 
cannot be reached, Emap is 
likely to make a hostile offer. 

Controversy was growing 
last night because an Emap 
takeover of Trans World would 
breach the legal limit on the 
number and size of commercial 
radio licences which can be 


held by one company. 

Under UK broadcasting legis- 
lation, no company is able to 
hold more than six large 
licences - each, broadcasting to 
more than lm adults. The com- 
bined group would bring eight 
such licences under one roof. 

The Radio Authority, the 
industry regulator, has agreed, 
that an “ownership structure” 
can be put in place for some of 
Exnap's radio interests to 
enable it to comply with the 
rules. 


Allianz 
takes 30% 
of Berner 
Holding 

By Richard tapper in London 

Allianz of Germany, Europe's 
largest insurance company, 
yesterday announced the 
acquisition of a 30 per cent 
stake in Switzerland’s Berner 
Holding, in a rare example of 
foreign penetration into the 
highly-regulated Swiss insur- 
ance market 

The deal is one of a number 
of recent cross-border acquisi- 
tions by European insurance 
companies, which are expect- 
ing an Increase in co m pe ti tion 
as the European insurance 
market is liberalised. 

Allianz, which made the 
acquisition through its Italian 
subsidiary, Rfunlone Adziatica 
di SicnrtA, did not disclose 
details of the price. 

In recent transactions Euro- 
pean insurers have been sold 
for amounts equal to between 
50 and 100 per cent of their 
annual premium income. 

In 1993 the consolidated net 
premium income of Berner 
Group, one of Switzerland’s 
leading 10 insurers, amounted 
to SFrl.OSbn (8771m)- The 
group had a 4.7 per cent share 
of the Swiss non-life market in 
1992. 

Allianz has extended its 
operations outside Germany in 
the past 10 years. It acquired 
Cornhill of the UK in 1984, 
and has subsidiaries in most 
European markets. 

hi Switzerland it owns two 
small companies, Allianz Con- 
tin en tale AUgemeine and Alli- 
anz Coxxtinentale Lebensversh 
chernngs. The companies' 
premium income amounted to 
SFr2S8-5m in 1993. 

Allianz said the co-operation 
with Berner, formed from 
three smaller companies in 
1990, offered “interesting per- 
spectives” for both parties. 
Although Berner would con- 
tinue to work as an indepen- 
dently run enterprise, the deal 
would strengthen, its capital 
base and increase underwrit- 
ing capacity. 

Last week Commercial 
Union, the UK’s largest com- 
pany, announced that it was 
poised to pay £L46fm (S2^bn) 
to buy the Abeille Assurances 
and Abeille Vie operations of 
Groupe Yictoire, France’s 
sixth largest life insurer. 


Kemira prepares to fulfil ambition 

Sell-off plans are nearing completion, writes Christopher Brown-Humes 


T en years ago Kemira. 
the Finnish state-owned 
chpimrafc group, asked 
to be privatised. This autumn, 
after considerable political hes- 
itancy and a few market hic- 
cups. it hopes finally to 
achieve its ambition. 

The company, Finland's 
eighth largest by sales, wants 
to raise up to FU2hu (8361m) in 
what would be the biggest 
issue in the country's acceler- 
ating privatisation programme. 
The bulk of the shares will be 
offered to international and 
Finnish institutions (although 
there wifi also be a retail 
tranche), cutting state owner- 
ship from 100 per emit to as 
little as 68.4 per cent. The 
lapnnh cfatp still to be fina- 
lised, but October looks the 
most likely month following 
publication of the group’s 
eight-month figures. 

Much will depend on the 
state of the markets. Given 
recent bond and equity market 
volatility, some analysts fear 
the group may be forced to 
compromise on the size of the 
offer or price. They note a sud- 
den rush df big F innish shar e 
issues - Nokia, the telecommu- 
nications 'group, and Outo- 
kumpu, the mining and metals 

group, are currently seeking 
up to FM4hn between them - 
which may sap International 
demand for Finnish shares. 

If Mr Heimo Karmen. Kemira 
chief executive, is nervous 
about unsettled markets, he is 
not showing it He argues that 
Kemira has done a lot to put 
its house in order and a cycli- 
cal upturn in its main busi- 
nesses is imminent. 

The group embarked on a 
ambitious acquisition pro- 
gramme in the late 1960s, buy- 


Kemfra said yesterday that net Income after taxes fell to 
FMS15.6m (838197m) in the first four months, from FM237-6m to 
the same 1993 period. Sales were 9.7 per cent lower at FM4.t9ba 
white operating income declined to F7@404.ln from FM504.71n. 

The figures were prepared using International accounting 

standards for the first time- . . . . 

The group was more positive about prospects, saying results m 
the second four months should be better than last year. The 
group's division, Kemira Agro, Is expected to benefit from 
MgW capacity utilisation and declining Imports from eastern 
Europe, while higher Htanium dioxide prices will lift the pig- 
ments division. 

Figures were hit by a strengthening Finnish markka, sates of 
non-core businesses and reduced agrochemical sales to Russia, 
Ukraine and Belorussla, the group said. The Agro division was 
also hurt by poor weather conditions which delayed demand for 
plant nutrients. 

Operating income was lower in both the Agro and pigments 
divisions, but there was abetter performance from the chemicals 
and paints activities. 

Pre-tax profits amounted to FM214.6m, compared with 
raKBU m a year ago, after a steep fall In financing costs to 
FMI 89.5m from FM266-3m. 


ing many companies at high 
prices, just before the market 
headed downwards. The 
impact on the balance sheet 
has been stark: net debt has 
soared to FM8bn and the 
group's equity-to-assets ratio 
has sunk to 17 per cent 

The sell-off is designed to 
strengthen the company’s capi- 
tal structure, as it and not the 
state will garner the proceeds. 
The main aim is to get the 
equrty-toassets ratio above 30 
per cent. But Kemira also 
wants access to equity capital. 
Inability to do this in the 1980s 
forced it to borrow heavily and 
explains today's balance sheet 
weakness. 

If the issue does go ahead, 
investors' main concern is 
likely to be the company's 
Agro division. which 
accounted for 48 per cent of 
1993 sates and has not made a 
profit since 1990. to common 


with other leading fertiliser 
manufacturers, Kemira has 
been badly hurt by market 
overcapacity and a flood of 
imparts from eastern Europe. 
West European fertiliser 
demand is still declining by an 
average of 2 per cent a year. 

Mr Karinen admits that Agro 
will make another loss this 
year, but he says there are 
dear signs of a market upturn 
in Europe, helped by a reduced 
flow of Imports from eastern 
Europe. 

In any case. Agro's relative 
importance is dwindling fast 
Kemira’s growth areas are spe- 
ciality chemicals and titanium 
dioxide (a pigment used pri- 
marily to make paint), where it 
has strong market positions. 
Two particularly strong niches 
are water treatment chemicals, 
where it is Europe's number 
one, and pulp and paper chemi- 
cals. 


Ruhrgas slips as competition intensifies 


By Judy Dempsey in Bariin 

Ruhrgas, one of Germany’s 
largest energy companies, 
recorded lower profits and 
sales last year as a result of 
growing competition, Mr Klaus 
Uesen. chairman of the board, 
said yesterday. 

Net profits for the group fell 
to DM729m (84365m) last year, 
from DM796m in 1992. white 
group sales declined to 
DMbL34bn from DM24.4bn over 


the same period. Group earn- 
ings per share fell to DM2058 
from DM24.24. 

Ruhrgas, which controls 
about 75 per cent of western 
Germany's gas supplies and 
enjoys a virtual monopoly on 
imports, is facing increasing 
competition from Wintershall, 
the gas distribution subsidiary 
of BASF, the German chemical 
group. 

Under an agreement signed 
this year, Wintershall dented 


Ruhrgas's virtual monopoly 
over gas imports from Russia 
after it won the right to distrib- 
ute gas imported from 
Gazprom, Russia's state-owned 
gas company, to VNG. VNG is 
the main east German gas dis- 
tribution network in which 
Ruhrgas and its partners holds 
a majority stake. 

Despite more competition, 
and prospects of eventual liber- 
alisation of Germany's energy 
sector, Mr Liesing said he 


til 


Kemira says many of iu 
businesses are starting taboo*, 
fit from cyclical economic 
recovery, mainly through 
higher volumes. But it atm 
believes the strength, of ftj 
competitive position has ben 
enhanced following heavy 
rationalisation, currency 
depreciation and a sharp cot- 
back in capital expenditure. 
These factors helped the group 
to record a FMI495m hat 
income after taxes in 1988, 
after two years of heavy losfea 
Mr Karinen says Kentfota 
cost-cutting has been mace vig- 
orous than any of Its main 
European competitors, partly 
because it had more to do than 
its rivals following its aetpriti- 
tton programme but p ar t ly 
because it acted earUer. Tfca 
group has cut around 28 per- 
cent of its workforce since 
1990, bringing staff numbers 
down to 11,000. 

C urrency factors have 
also assisted the 
group’s revival as more 
than half of Its production Is . 
based in Finland, Sweden and 
the UK, The currencies of «B 
three countries have depred- 
ated sharply over the past Wo 
years. 

The group has also teamed 
from post mistakes. Its heavy ■ 
acquisition and investment 
programme means cash flow 
after investments was negative 
from 1984 until 1991. Only ta 
the past two years has it been 
positive, following a sharp 
reduction in capital expendi- 
ture. The target is to adtievoa 
positive cash flow after capital 
expenditure of at least FMSOQm 
a year, which the company 
says should be sufficient for 
further Investments. 


expected stronger sales for 
1994. Sales for the first fire 
months of this year increased 
by 4 per cent compared with 
the same period last year. 

Ruhrgas. through VNG. can; 
also expect stronger growth in 
eastern Germany. Ruhrgas 
expects demand for natural gas 
in western Germany, to 
Increase by about 25 per cant 
by the year 2005, white demand 
in the eastern states Is expec- 
ted to triple. 


DaimlerBenz 

DAIMLER-BENZ Aktiengesellschaft 

Stuttgart 

Rights Offer 

Security Identification Number 550 000 

Pursuant to the authority granted at the ordinary General Meeting of our Company on June 26, 1991, we have resolved, 
with the consent of the Superv isory ( Board , to increase the share capital from DM 2,329,638,000 by DM 232^63,800 to DM 
2,562,601 ,800 through the issue of 39, 276 new bearer shares of par value DM 50 each and 231 ,000 new bearer shares of 
par value DM 1,000 each. The new shares are entitled to the total dividend for the financial year 1994. 

A banking syndicate headed by Deutsche Bank AG has underwritten the new shares with the obligation to offer them to the 
shareholders of our Company in the ratio of 1 for 10 at the price of DM 640 per share of par value Dm 50. 

The increase in capital having been entered in the Commercial Register of the Municipal Court at Stuttgart, we herewith 
invite our shareholders to exercise their subscription rights, to avoid their forfeiture, 
from June 20 through July 5, 1 994 

by presenting coupon No. 60 during normal banking hours at one of the foBowing subscription agents: 


Deutsche Bank AG 
Bankgesellschaft Berlin AG 
Bayerische Landesbank Girozentrale 
Commerzbank AG 

DG BANK Deutsche Genossenschaftsbank 
Goldman, Sachs & Co. oHG 
J.P. Morgan (Deutschland) GmbH 
Schweizerische Bankgesellschaft (Deutschland) AG 
S.G. Warburg & Co. GmbH 
Commerz-Credit-Bank Aktiengesellschaft 


Baden-Wurttembergische Bank AG 

Bayerische Hypotheken- und Wechsel-Bank AG 

Bayerische Vereinsbank AG 

CS First Boston Effectenbank AG 

Dresdner Bank AG 

Merrill Lynch Bank AG 

Morgan Stanley GmbH 

SQdwestdeutsche Landesbank Girozentrale 

Westdeutsche Landesbank Girozentrale 

Deutsche Bank Saar Aktiengesellschaft 


For every 10 old shares of par value DM 50 one new share of par value DM 50 may be purchased. 

The subscription rights for toe new shares (Security Identification Number 550 008) will be traded and officially quoted on 
all the German stock exchanges from June 20 through July 1 , 1 994. The subscriptions agents are prepared to arrange, as 
far as possible, for the purchase and sale of subscription rights. 

The subscription price is payable when the subscription right is exercised, no later, however, than July 5, 1994. 

The shareholders of Daimler-Benz AG, who are still holding shares of the former Mercedes Aktiengesellschaft Holding are 
also entitled to subscribe. These shareholders are requested to state whether or not they wish to exercise their subscription 
rights when they present their shares (to be exchanged) during the period for exchange of the shares of Mercedes 
Aktiengesellschaft Holding which ends on June 30, 1994. 

The new shares are admitted to trading with official quotation on the stock exchanges at Stuttgart Berlin, Bremen, 
Dusseldorf, Frankfurt am Main, Hamburg, Hanover and Munich. Official listing on the stock exchanges at Basel, Geneva, 
Zurich. London, New \fork, Paris, Singapore. Tokyo and Vienna will take place in accordance with the regulations at these 
stock exchanges. The new shares are represented by a global certificate which will be deposited with the appropriate 
depositary. Subscribers will be credited In a joint share account It is not expected that new share certificates will be printed, 
as sufficient certificates representing individual shares are available, with coupons No. 61 through 70 and a renewal 
coupon. 

The listing prospectus will be published unabridged in the Borsen-Zeftung on June 14, 1 994. Printed copies of the 
prospectus may be obtained free of charge at the aforementioned banks or from Deutsche Bank AG, London, 6 
Bishopsgata, London EC2P 2AT who also act as subscription agents in the United Kingdom. 

Stuttgart In June 1894. 

The Board of Managing Directors 






11 

. Til*.; 


F atureSburce 



One Chart Equals One Hundred Stories 

Pr-. li! Ir^tn S Ch-rl !ibr ci.t-i. UX. - r .d tniatn;:l.crp! £ - 

: .f Cvt'C-rcv prdrr or r::v- ‘-IP^ . l-c erv: 

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.( :ha; o you cc:! OovicI Ko lv or -uion Pi-vy icr .-jot.-:;!:. 

Tv • icn-rlon 71 Ta 717.J <071 <r. UK) at fa* 71 • 


MITSUBISHI KASEI CORPORATION 
U.S.S3 00,000,000 

4Z: per cent. Notes due 1995 with Warrants 

Punuant to the provicions nf CLutsc 4 of the hstnunent relating to the 
above Warrants and die ruin of the Uucembouiy Stock Exchange, 
notice is hereby given that Mioubnln Kras Corporation ("Mitsubishi 
Kasei") uni Mcsnbhhi Pctrochcr m ca! Company Limited (“Mitsubishi 
fttnxhenucaH agered into aajge cn tcnt tor mavpr on 28th April. 
1994 (Japan Dme. the same o jppbobSc hereinafter) wherrundcr 
Mitsubishi Petrochemical will mcry inro Mit s ubi sh i Kosa and be 
dissolved, and Mitsubishi con among corporation will assume 

anofihghusmes^as«sandtahilB30Q(Mgsubtthi fctrochcmiaL 
New shares of Mitsubishi KasdwiU be <fcmbu red ra shareholders of 
Mitsubishi Petrochemical by exchange at the raw of 13 Mitsubishi Kasei 
slnres fcr H) Mitsubishi Pc tr o ch c un cal shares hekL The new name of 
the continuing corpo ra tion will be "Mitsubishi Chemical Co tpotation 
(in Japanese “Mitsubishi Kagticu KabushLIri Katsha") "effective as ot" 
hi October, 1994, subject to the commercial registration mentioned 
below. The mcigpr agreement is expressly made subject to approval by 
special resolutions of shareholders of the two companies at die respective 
general meetings mentioned below. 

The merger agree ment will be subnoaed for approval to te sp cc u ve 
general meetings of the shaichoMcreofdie two companies to be held on 
29th June. 1994. The merges 1 will become effective as of bt October, 
1994, subject to compliance with the cc rom c r cial reg is tration 
requirements under Japanese law. Such commercial registration is 
expected to be completed towards the end afDecembet 1 , 1994. 

No adjustment wQJ be made to the Subscription Price relating to the 
Warrants as a result ofdie merger as Mitsubishi Kami will be the 
continuing corporation. 

Neither the Notes, nor die Warrants of the above issue will be stamped 
or exchanged. Instead they will remain listed on the Luxembourg 
Stock Exchange under the present name followed by die new name 
of the cootinuiiig corporation, Mitsubishi Chemkal Corporation 
(or vice versa). 

All further notices regarding the above issue will reler to both present and 
new names. 

A comple m ent ar y legal notice as swell as die Articles ofl ncorporadoo of 
Mitsubishi ChentkaJ Corporation will be registered with the Grefficren 
Chefdu Tribunal <f ArrondueracfU de eta Luxembourg in due course. 

Mitsubishi Kasei Corporation 

By: The Mitsubishi Trust and Banking Corporation 
its Principal Paying Agent 
Dated: Hth June, 1994 


"GrvfS- Pu t.u reV lew 


We are urgently seeking commercial 
lAMDIC investment prtyerties upwards of 

LAUKIC SL5tn far bv-hfmse lunds anriowrsran 

Tct 9714*37050 dims. Please fbrwairf details ta 

Fw on 491 689 Richard von Gdtzen 





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ITOCHU CORPORATION 

To the Holders of the Bearer Depositary Receipts 

Notice It he r eb y rira that the 7Mi General Meeting of Skwebokkn of 
Itochu Corporatism will be held at M-Mtn, ta ZVthJroe. EH4. at the Head 
Office of the con puny located af W Kyatara-MkcM, 4 -CIKmk, Chae-Ku, 
Osaka, Japan. Notice of coarctations af the meeting Is araUaUe at the 
Cashier’s Counter. Hatabrni Bank Ltd.. -U Tmn-r HIM. Landoa ECJN 4HA. 
U.K. and Basque Internationale A Luxembourg S.A., ' Boulevard Royal. 
Luxe mb ourg. 

Business Operations and Results for 1993/1994 
Fiscal Year (commenting 1st April, 1993, ended 31st March, 
1994), hereinafter referred to as Fiscal 1994 

Durian naealtret. (be Japanese economy ivmataed ta icccsdm. dopUc a 
few starts of a rebound early in thr Fiscal Year. Such factorial the farce in 
the value or tit* yea and tbc unusual weather Impeded recaven. rilbouxh 
tonhaliolaat i-ab ie d steady, private-— ctorlnvestraeat fa pUat tad 
equipment continued to dccBae and personal consumption ta bopd*. The 
1 outlook and corporate earalags both deteriorated. Ip 
, the dollar vahse of tbc yen reached a postwar low: 

In an effort to stimuli tr the economy, hi April the Japanese government 
announced a camprehcmriie package of fiscal stimolui mcafcref. FoBowtnf 
a teencnl election ol the Boom of Representatives In July, the Incumbent 
administration, which had been dominated by the Liberal Democratic 
placed by an tight-party eoafitioo fovmnaoiL The new 
announced a series of emergency economic measures ta 
September. In February 1994, the pxcnuiwot announced a IS Irfflba yea 
economic sUnrnht s pac k a g e , its largest to date. On September Zl, 1993. the 
Bank of Japan towmd the official dbcenai rate by 0.75 per eent to 1.75 per 
cent, a historic low. 

Following yean of negotiations, the Uruguay round of the General 
Agreement an Tariffs and TVade was conchaicd in November. However, at a 
Jopao-U^. atmuub conference called Id address a wide range of economic 
tomes In February, negotiators tefled to reach an a g ree ment . 

Tbc economic recovery In tbe United Stales strengthened, driven primarily 
by domestic demand, and gathered speed daring the latter hair of Fiscal 
1994. In Fcbrnaty, tbe Federal Reserve Board tightened credit for (be flirt 
time in five yean. 

In Europe, Germany experienced a marked slump and negative growth 
continued. The Bundesbank lowered tbe Official Dbcmmt Rate several 
times, from a Ugh of 7 J per cent at the beginning of tbe period to 5.25 per 
cent by period'll end. Althonyh t he French economy remained sluggish, tin 
British economy improved dtghtij- 

In Asia. China -| economy, Itodledby caphrt ta vestment, fprew attach a p*c« 
that ta showed signs of overbrntlng. On die whole, tbe economies oftbe new(y 
« nations (NIES) and of the members of Urn Amodntion af 
i Asian Nations (ASEAN) con t i nued to expand rigorously. 

In Ibis operational environment. Itochu completed the Hixal year of Ms 
“Global ‘Or’ midterm opera tio nal plan. To rcnlbe our vision for the 21st 
centoey «« undergoing structural reform rimed at transforming the. 
company into a “Globally Integrated Corporation". Weararisoim- 
ptraBeuting a variety of strategies ta expand onr Patura earnings capability 
and Is prepare for onr foture success. 

We, undertook various measures to deal with changes ta Japan's production 
and distribution systems: changes that are occurring because of the high 
value oT the yen, better market access worldwide and growing domestic 

demand. Namdj. we expanded Imports of mamrihetared goods, ungraded 
our overseas production sites and strengthened our distribution functions, 
i Asia, we imported n variety of fobbed goods for drily use sack ns 


A 


datUag and penemsed foods. Imports from Europe and the Vailed Statu 
coosblcd primarily of wetMnwwn brands of comnmer goods, computsr- 
rdated equipment, heavy construction equipment and medical equipment, 
lb ' 


rictpdpn 

lb strengthen our overseas production system In CMaa, where the ecooemy 
b booming, we established a number of companies in cooperative ventures 
with major local and foreign Arms lot 
ptastks and beer. To expand onr tr 
esa bibbed Itocfaa t Chins) HtMk 


lufoclure mb products as textiles, 
transactions within China, we 
Holding Co.. Lid.. China's Aral wholly 
Japanese-owned foreign affiliate. 

Itoehu augmented its distribution cySt^^byes^Mtebiog a textiles logistics 


V 


«**«£ to snpply major retailers, ut aoomoa. me company constructed a 
dlstrBHitien system for peeking materials and swhrmfl goods as 
fresh-baked breads. We estnbtisbed a company la Shanghai to aimment 
shipping operations for nor Joint tea lures in Chinn, whkh nunnfoctare 
textile product* far the Japanese market, 

Itochu b actively Involved ta efforts to protect the environment and hm been . 
working to protect forest resource* by dcvriopln* alternative prodacts. 
During the period, we developed a product that uses waste plasties andotbar 
mricruli to create a substitute fur moulded plywood made from tropical 
lumber. We also started scBing comgntcd cardboard pallets that can bs 
used {nphcesTwoodcn pallets nnd begin Importing construction materiris 

made IVom waste rubber. 

Itochnk trading transactions daring the period win rioggbfc overall, 
tampered primarily by the domestic recession, tbc strung yen and a drop ta 
the price of eradc ofl. Among export transactions, automobile experts hi 
Enrope and tbe United States declined and report of manabctorlisg plant 
and equipment dropped hi comparison to the large orders (tat were 
delivered during tbe prece di ng year. Domestic transactions, which ware 
adversely affected by the recession. risofeB. Moreover, a drop la Urn number 
•ud velmue of energy-related transactions and to cununoiHtv price resalted 

In decreased import trusarilMu. Largdy as a renk of a rabsinilnl decUta 

oreraem transactions, total trading transactions In Fiscal were 
14,134.9 bilUon yen, li9 per cent lower titan during Fltenl 19913. 

Lower sries revenues because of the recession WWrlbuHd (**2JS per Cttti 
decfiM in gross trading profit to 227.5 bOSonyen. Operating prodt dropped 
2fl J per eent to 48.7 btUkm yen. AlttioMb ftoanda) expense* Improved 
compared with the preceding period, grants on securities soM wore lower 
and onttimry profit dropped J8J percent teJ0.7 biffion yen. 

The company recanted an extraordinary loss of 75JI btUtoa yea. incurred 
prtaarfly from the dispaaa! of mMcyftmdi In trust and the reorganisation 
and disp os al oT sobsldtaria and affiliates. Although partially offset by 
extraordinary proflt aT57J bflUon yea foam profit on tbe sale of flttd assets, 
tbc result was an 80.1 per cent drop to ort Income to 2.0 bifllou yen. 

Annual Report for FasenI19Mwifl be available at Bambros BMk Lid. and 

Basque InteraMloaale 6 Lusetuboorg S.A. by tbe end of July. 1994. 







1 i"\j« ■ 


FINANCIAL TIMES TUESDAY JUNE 14 1994 


INTERNATIONAL COMPANIES AND FINANCE 


:wties 


Echo Bay 
steps up 
search for 
gold mines 

By Robert Gibbons 
In Montreal 

Echo Bay Mines is searching 
aggressively for new gold 
mines in Latin America and 
elsewhere in order to speed 
growth and offset North Amer- 
ica's costly processes for per- 
mits, according to Mr Richard 
Kraus, president 
The company has been work- 
ing for seven years to develop 
two gold properties near 
Juneau, Alaska, and now 
believes it can bring them into 
production in 1998. Total capi- 
tal costs would be about 
US$37 Om to Echo Bay and 
annual output about 500,000 oz. 
Echo Bay’s 1993 output from 
* producing mines in Canada, 
Nevada and Washington state 
was 874,000 oz of gold, up 14 
per cent from 1992, and 12.5m 
oz of silver, up 57 per cent ' 

Mr Kraus said the offshore 
search was being targeted at 
Ecuador, Peru and Chile. 
Reports of a joint venture in 
China, however, were prema- 
ture. 

Total exploration spending 
this year will be US$36m. This 
includes $lxn for geophysical 
work and drilling for kimber- 
lite on land Echo Bay holds 
near the Lac des Gras diamond 
deposits in Canada's North- 
west Territories. 

“Our properties sit in the 
Corridor of Hope, running 
about 200 miles from Lac des 
Gras northwest to our Lupin 
gold mine," Mr Kraus said. 
“We’d raise the budget if we 
were successful, but for devel- 
opment we’d seek a partner- 
ship with a major international 
mining firm with diamond 
experience." 

The Lupin underground 
mine has pared costs and has 
at least another 10 years of life, 
said Mr Kraus. 

He said the big McCoy/Cove 
mine in Nevada would slow sil- 
ver production this year to 
about 9m oz. It is one of the 
world’s three largest silver pro- 
ducers as well as providing 
gold. 

Echo Bay, which is Canadi- 
an-based but is operated from 
Denver, Colorado, has more 
than SSSOm in cash and low 
debt and expects to finance its 
medium-term programmes 
internally. Last year it earned 
$3.Sm, or 3 cents a share, on 
revenues of $366m. 


SGS-Thomson float considered 


By John Rkkfng in Paris 

Part of the capital of 
SGS-Thomson, the Franco- 
Italian semiconductor manu- 
facturer, could be floated on 
the stock market in the near 
future, according to one of its 
largest shareholders. 

CEA Industrie, the French 
atomic energy commission 
which holds about 12 per cant 
of the shares in SGS-Thomson, 
said a partial flotation of the 
semiconductor group was 
being discussed with other 
shareholders. 


These include France T616- 
cam, Thomson-CSF, the state- 
owned electronics group, and 
Italy's Finmeccanica and Iri, 
the state holding company. 

CEA no decisions have 
been fa frqn on the the timing 
of a possible partial flotation 
nor on hh» method. 

Industry observers in Paris 
said, however, that it would 
rftbw tnira pja cfr as part of a 
capital increase for the semi- 
conductor manufacturer or 
through the sale of shares by 
existing investors. 

The operation could take 


place by the end of this year or 
at the beginning of 1995, 
according to one industry 
source. 

The discussion of plans for a 
partial privatisation coincide 
with an improved performance 
at the group which was created 
in 1987 through the merger of 
the semiconductor activities of 
Thomson of France and SGS 
Microelettronica of Italy. 

Last year, the group reported 
net profits of 8160m, compared 
with $3.4m in 1992. Further 
improvement Is expected this 
year, despite expectations of a 


slowdown in the international 
semiconductor market 
• Texas In s t rum ents, a lead- 
ing US electronics group, has 
introduced a set of computer 
chips to produce VHS-quality 
video and compact disc-quality 
sound for emerging video-CD 
applications, including movie 
and music video playback, 
video games and karaoke, 
AP-DJ reports from Dallas. 

The company said the chips 
would be available for sam- 
pling this summer. Production 
quantities should be available 
during the fourth quarter. 


Foreign investors favour Cemig 

Brazilian electricity group attracts interest, writes Patrick McCuiry 


B razil's Cemig, Latin 
America's biggest elec- 
tricity company in geo- 
graphical terms, has become a 
favourite of foreign investors. 

They have been attracted by 
Cemig’s productivity gains, Its 
low debt and the potential pri- 
vatisation of Brazil’s electricity 
sector. 

However, Cemig’s prices are 
among the lowest in Brazil, 
raising questions about 
whether the company can raise 
profitability in the long term. 

Omig- , or CompanUa Ener- 
getics de Minas Gerais, is con- 
trolled by the state of MmaQ 
Gerais, which owns 84 per cent 
of its voting shares and 57 per 
cent of its total capital. 

The company was created in 
1952 by Mr Juscelino Kubit- 
schek, the modernising state 
governor and future president, 
as a generator, transmitter and 
distributor. 

The state has used the com- 
pany, covering an area larger 
than France, to gain access to 
international capital markets. 
In January, the state sold 
$200m of eurobonds with 
equity warrants in the com- 
pany and ft is now planning a 
private placement of non- 
voting American depositary 
receipts (ADRs) for at least 
S150 hl 

Overseas interest was stimu- 
lated by a Level l ADR pro- 
gramme launched last year, 
and the company is adapting 
its accounts to US standards 
for a possible capital issue of 
Level 3 ADRs next year. 

Currently, about 12 per cent 
of Cemig's capital is held by 
foreigners, compared with 
almost nothing three years 
ago. 

Qgmig has proved attractive 


to international investors in 
spite of an operating loss of 
8165m last year following com- 
bined operating losses of 
nearly 8200m in 1991 and 1992. 

rj*rrig blames the losses on 
the government’s policy of 
keeping electricity prices artifi- 
cially low to try to control Bra- 
zil’s chronic Inflation 

It also says a change in 


the prospect of privatisation, 
leading to price increases over 
the longer term. 

The government is said to be 
looking at the industry's priva- 
tisation but no clear decision is 
expected until after presiden- 
tial elections at the rei*r of the 
year. 

Cemig's total debt is only 9 
per cent of shareholders' capi- 


Brazil has used Cemig, which serves an 
area larger than France, to gain access 
to the international capital markets. 
In January, the state sold $200m of 
eurobonds with equity warrants In the 
company and it is planning a private 
placement of non-voting American 
depositary receipts for. at least $150m 


accounting policy in 1990, 
adopted by most of the indus- 
try, led to an increase of about 
60 per cent in depreciation 
costs. 

However, a new electricity 
price structure introduced 
ahead of the real, Brazil’s new 
currency due to enter circula- 
tion In July, will lead to a one- 
off 20 per cent increase in 
prices for the company, accord- 
ing to Mr Luiz Fernando RoUa, 
a Cemig finance nffl cjaL 


M r RoQa predicts the 
price increase will 
help the company to 
makp a gmaii profit year. 
He says investors have been 
attracted by its low debt, its 
reputation for being well man- 
aged and prospects for a 
long-term increase in demand 
in Minas Gerais state. 

Another attraction has been 


tal, partly because of under- 
investment, particularly since 
the early 1980s when many 
publicly-controlled companies 
were starved of funds. 

The company has also 
avoided the highly expensive 
local debt market and sought 
funds from agencies such as 
the World Bank. 

Productivity has grown in 
the past three years, helped by 
1,000 job cats, reducing the 
payroll to 17,000. Another 4,000 
to 5,000 jobs could go by the 
year 2 000, says company presi- 
dent Mr Carlos Aloy. 

Cemig's ability to cut costs is 
limited, however, because it is 
obliged by the federal govern- 
ment to buy 17 per cent of the 
energy from the Itaipii hydro- 
electric plant on the Brazil- 
Paraguay border. 

This amounts to 28 per cent 
of Cemig’s energy needs, but 34 


per cent of its operating costs. 

But a more important prob- 
lem, according to analysts, is 
that about 70 per cent of Cem- 
ig’s revenues comes from 
industrial users, which tradi- 
tionally pay lower prices than 
residential users. 

This means Cemig’s prices 
are cm average the lowest in 
Brazil, according to Mr 
Antonio Zagatto, planning 
manager at Sko Paulo's 
electricity company Cesp, 
where Industrial customers 
make up about 50 per cent of 
revenues. 

Many of Cemig's industrial 
consumers are in electricity- 
intensive sectors, such as alu- 
minium production, which 
have won large discounts from 
the company. 

There is also a question 
mark over Cemig’s capital 
investment 

Mr Luiz Henri que 
company spokesman, says 
Cemig should be Investing 
about 8450m a year, instead of 
the current 8300m, to cover 
depreciation costs and prepare 
for increased demand. 

He points to proposed gener- 
ating partnerships with large 
consumers, such as the mining 
company Companhia Vale do 
Rio Doce (CVRD), as a way of 
increasing electricity supply in 
the long term using shared 
capital investment 

Mr Aloy hi g hli g hts the need 
for "maximum partnerships 
with the private sector”. 

However, he adds that when 
a new plant in the western 
area of Nova Ponte comes into 
operation later this year, 
Cemig will have sufficient 
capacity to cope with current 
demand, even without energy 
from Itaipu. 


Probe into 
possible 
acquisition 
of Macy 

R.H.Macy, the US stores 
group, has been informed that 
the Attorney General of New 
York State has started a for- 
I raal investigation of the possi- 
ble acquisition of Macy by Fed- 
erated Departments Stores, 
AP-DJ reports from New York. 

Macy has been in Chapter 11 
bankruptcy court proceedings 
since January 1992. 

A spokesman for Macy con- 
firmed that the investigation 
by the office of Attorney Gen- 
eral G. Oliver KoppeD centred 
on whether a Macy-Federated 
merger had anti-trust ramifi- 
cations, 

Macy said rt was asked by 
the Attorney General’s office 
to provide detailed informa- 
tion relating to “a number of 
aspects of Kacy’s business and 
the competitive environment 
in its markets as it relates to 
Federated, as well as to other 
competitors”. 

Macy said it planned to 
co-operate with the Attorney 
General’s request. 

Federated has been pursuing 
Macy since January, when the 
Cincinnati-based retailer dis- 
closed that It had bought a 
large amount of Macy debt 

Dutch Alcoa chief 
sees squeeze on 
aluminium groups 

Smaller west European 
aluminium companies will be 
increasingly squeezed by east 
European rivals and global 
operators in their own market, 
said Mr Berry Bemelmans, 
president of Alcoa Nederland, 
Reuters reports from Dnmen, 
the Netherlands. 

Mr Bemelmans said that 
companies needed to establish 
a significant presence in the 
key packaging, aerospace or 
transportation aluminium sec- 
tors in order to ensure their 
survival. 

A further challenge would 
come from the east as Russian 
producers moved from exports 
of ingots and extrusions to 
products with greater added 
value. 

Mr Bemelmans said Alcoa 
Nederland, throngh its owner- 
ship by A hi minimi Company 
of America, was (he first west- 
ern company to establish a sig- 
nificant presence in the east 
European aluminium market. 


Shareholders in 
Mediobanca clear 
way for cash call 


By Andrew Hffi in MBan 

Shareholders in Mediobanca, 
the powerful Italian merchant 
bank, yesterday cleared the 
way for a rights issue which 
will raise at least Ll,500bn 
($932m) to expand the bank's 
investment portfolio and 
broaden its ownership. 

Bank directors refused to 
take questions from investors 
at yesterday's meeting on the 
continuing investigation by 
Ravenna magistrates into alle- 
gations that senior bank execu- 
tives were involved in report- 
ing false 1992 accounts for the 
troubled Ferruzzl-Montedison 
industrial group. 

The allegations, which 
Mediobanca denies, have cast a 
shadow over preparations for 
the rights issue. 

Although a price for the new 
shares is unlikely to be set 
until next week, Mediobanca 
says the first tranche of 100m 
shares will be sold for at least 
L15, 000 each. 

Warrants will give the right 
to buy up to 10m further 
shares for at least L15.500 each. 

Yesterday Mediobanca 
shares, which had recovered in 
recent trading, slipped back 4 
per cent to close at L15.229. 


Mediobanca masterminded 
the restructuring of Ferruzzi- 
Montedison last year, after it 
came near to collapse. 

However, the meeting was 
dominated by discussion of 
ordinary bank operations, 
despite attempts by some of 
the 111 shareholders present to 
raise the subject of the judicial 
inquiry. 

The bank revealed, for exam- 
ple, that it had increased its 
stake in Paribas, the French 
bank, from 1.5 per cent to 2 per 
cent, at a cost of some L91bn. 

Mr Vincenzo Maranghi. man- 
aging director, also said gross 
operating profit had slipped by 
some 6A per cent in the first U 
months of the current ftnanetai 
year, which ends on June 30. 
However, the after-tax result is 
likely to be bolstered by such 
items as underwriting fees. 

In 1992-93, Mediobanca's net 
profits were L200.1bn, down on 
the previous year. 

The rights issue is partly 
intended to dilute the 50 per 
cent holding of the bank's tra- 
ditional long-term shareholders 
- headed by former state- 
owned hankn and including a 
roll-call of Italy’s biggest and 
oldest companies - to about 
40.6 per cent 



Tbv FT Trim mam buslnau paopto wttii proparty rmpo m MHty In 
tho UK than any othar nwpup or and more Motor Europoan dnetabm- 
makars on traslnnoa pramlaos/altsa reading English-language 
nmnpapora.* 

For a Ml odftof fa l synopsis and datata of avaUalds advorttaamaiit 
poaKtona, plaase contact 

PAT LOOKER TeL* 061 834 9381 Fax: 061 832 9248 

ftian c M tenoa, AtomnWa Bdkttlga, Queen Stmat, Mandmatar M2 5LF 
• Eonr Bine 1SKL HRS 1983 


FT Surveys 


This flrmouncemcnr appears as a matter of record onty 


xixjx, 

k. / " \ / \ A 


The National Coal Supply 
Corporation Limited 

( Incorporated in Israel with burned IkMirjJ 

US$ 20,000,000 

Secured Trade Related 
Revolving Bill Discount Facility 


■ BwM an 
wmtaii 


Funds provided by 

Banco di Napoli S-p. A. 

United Mizrahi Bank Limited 

London !■ 

Banque Fran$aise Du Commerce ExtSrieur 

London Branch _ 

Raiffeisen Zentralbank Osterreich Aktiengesellschaft 

London Branch 

Banca Nazionale Dell’ Agricoltura 

London Branch 


MIZRAHI BANK f 


United Mizrahi Bank Looted 
FINSBURY HOUSE. 23 FINSBURY CIRCUS, LONDON EC2M 7UB. 
TEL: 071418 7040. FAX- 071-588 'SMJ. TELEX; 896654/5 UMBG 


February 1904 


<z> 


ThcHniwkonS .md Shanghai fonkins Corporation Llmrwd 
(Incoiporatod in Hong Kong wbh lirntwd HabiGty) 

U.S.$400,000,000 

PRIMARY CAPITAL UNPATEPFLOATING rate notes 

Notice is noreby fllvon iMt the Bale of inte rnal has boon Ibtad ai 
rr? In^ra-a payable on But relevant Interest Payment Dote 

lft£5 ff SKk* <* USS5.000 nominal ol the Note aril 
aii impact ol US$100,000 nominal of tho Notes w» be 

S1JT7.79. 

s--*. CITIBAN <0 


LONDON STOCK 
EXCHANGE DEALINGS 

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smsontta. 

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off electricity 


021 423 3018 

Poweriine 


THE ROYAL BANK OF CANADA 
U.S. 5300,000,000 BoatingSata 
DrtMnturs Notat due 2 DH 
NOTICE IS HEREBY GJVBV that for 
the Interasi Period commencing on 
15th June, 1#H the Notes will 
bear interest at the rata of 441% 
per annum. Tin Interest payable on 
15th September, 1994 ageinet Coupon 
No. 34 Will be U& $12.08888 partiS. 
SLOW nominal. 

Agent Bank 

&SQ ROYAL BANK OF CANADA 
fS&B EUROPE LIMITED 




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At Viglen, PC simply means 
‘Pleasing Customers’ 


In today's highly competitive PC market virtually 
every manufacturer will promise 'customer 
satisfaction'. 

According to countless surveys though, very 
few including some of the best-known manage to 
keep this promse. And of those that do, one can 
consistently be found in the 
top rankings for quality, value 
and after sales service as 
well as customer satisfaction - 
Viglen. 

In the recent Computer 
Weekly/Datapro user satisfaction survey, Viglen 
swept the board as the best PC manufacturer with 
the best machines. Users rated Viglen first in 
nearly ail of the hardware and company categories 



including the key areas of price/performance. 
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28 



Wellcome pic 

and 

Warner-Lambert Company 

have formed joint ventures in North America, Europe, 
Australia and New Zealand in the field of over-the-counter 
pharmaceuticals named 

Warner Wellcome Consumer Healthcare 


Morgan Guaranty Trust Company of New York advised 
and acted on behalf of Wellcome. 


JPMorgan 


June 1994 


U.S. $600,000,000 



Malaysia 

Floating Rate Notes Due 2009 


Interest Rate 
Interest Period 

Interest Amount per - 
U.S. $10,000 Note due 
14th December 1994 


5 Jfi% 


per annum 


14th June 1994 
14th December 1994 


U.S.S26&88 


CS First Boston 

Agent 


The Chase Manhattan Corporation 
. U.S. $400,000,000 
Floating Rate Subordinated Note* due 2009 
For the three months 14th June, 1994 to L4th September, 199+ 
the No ces will carry an interest race of 5K% per annum with a 
coupon amount of U.S. $04-17 per U.S. $10,000 Notes, payable 
on 1 4th September, 1994. 


BonkeraTnut 
Co m pa n y, London 


Agent Bank 



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BEAR 

STEARNS 


Warner-Lambert Company 


and 


Wellcome pic 


have formed joint ventures in North America, 
Europe, Australia and New Zealand in the field of 
over-the-counter pharmaceuticals named 


Warner Wellcome Consumer 
Healthcare 


We acted as financial advisor to 
Warner-Lambert Company. 


Bear, Stearns & Co. Inc, 


June 1994 


FINANCIAL TIMMS TUESDAY JUNE U 1994 

INTERNATIONAL COMPANIES AND FI NANCE 


Tajudin in fresh attempt to take over MAS 


By Kleran Cooke 
In Kuala Lumpur 

Mr 'Tajudin Rami?, a leading 
Malaysian entrepreneur, has 
announced a controversial pro- 
posal to take over Malaysian 
Airlines (MAS), one of Asia’s 
biggest earners. 

The highly-leveraged deal 
would see Mr Tajudin take a 
controlling 32 per «>n t gtnVp in 
MAS for M$L79bn (U5$726m}. 

The proposal is subject to 
approval by Malaysia’s regula- 
tors. 

Mr Tajudin has feilfepd of a 
shake-Up at troubled MAS, 
with flirftnp analysts predicting 
that lossmaking domestic 
services would be sold afL 

“In order for Malaysia Air- 
lines to move forward, we 
would need to develop a new 
vision to support our long-term 


objectives and strategies, tak- 
ing into account the c ompany ’s 
strengths and weaknesses.” 
said Mr Tajudin. 

“It could even involve an 
entire re-positioning e xerci s e 
for the national carrier,” he 

In spite of Mr TStfudia!s con- 
fident talk , a number at ques- 
tions surround the deaL 

At the end of last year Bank 
Negara, Malaysia’s central 
bank, announced that it would 
sell a 32 pea: cent stake in MAS 
to Malaysian Helicopter Ser- 
vices (MHS). a small listed 
company controlled by Mr 
Tajudin. 

However, that deal found- 
ered when the rally in the 
Kuala Lumpur fltnrir market 
lost momentum earlier this 
year. 

The original purchase, based 


cat an MAS share price of MSS, 
was to have been funded 
through issuing 112m new 
MHS shares at the then market 
pice of M$16 a share. 

MAS shares have recently 
been trading at around M$5, 
while MHS has been hovering 
around M$8. 

the new deal sees RZ Equi- 
ties, an unlisted company 
owned by Mr Tajudin. paying 
Ffanir Negara the M$1.79bn in 
cash through a personal loan 
financed by Mr TOtjudin. 

An MHS statement said Mr 
Tajudin had given MHS the 
option to acquire 100 per cent 
of the equity in RZ. 

No details have been given 
about how Mr Tajudin has 
raised such a large loan. Ques- 
tions have also been raised as 
to why Mr Tajudin’s purchase 
of the MAS stock is still based 


on a price of M$3 a share. 

“Financially, the deal seems 
to ma ke tittle sense," said one 
airline industry analyst. "But 
perhaps Tajudin feds carrying 
such a debt burden is worth- 
while in order to make changes 
at MAS and secure long-term 
profits.'* . . . . 

There are also thought to be 
political considerations in the 

Mr Tajudin is a dose busi- 
ness associate of Mr Data 
Zainnudin , Malaysia’s former 
finance minister and a close 
confidant of Dr Mahathir 
Mohamad, the prime minister. 
Mr Palm is known as one of 
Malaysia's wealthiest business- 
men. 

There is speculation that Mr 
Tajudin has agreed to the deal 
in expectation of one of his 
companies being given a lucra- 




Long march to openness for Citic 

Chinese group gives only sketchy details of profits, says Tony Walker 


T he nhinfl International 
Trust and Investment 
Corporation (Citic) this 
month reported a massive 
increase in profits, in percent- 
age terms, for 1993, to Yn3J5bn 
(U$390m), but its annual report 
provided only sketchy 6pfarfi« 
of how it achieved this seem- 
ingly impressive performance 
leap. 

While Citic, which is 
involved in an extensive range 
of businesses from real estate 
to manufacturing; is becoming 
more frit PHmHona] ami more 
open in divulging information 
about its activities, it still has 
some way to go to match world 
standards. 

Not only is Citic, which is 
owned 100 per cent by the Chi- 
nese government, the parent of 
inc reasingly active businesses 
abroad, including the Hong 
Kanglisted Otic Pacific; it is 
also a substantial borrower 
internationally, having raised 
$2bn in 18 bond issues by the 
end of 1993. This included 
$250m in 10-year bonds issued 
last year In the US market - 
China's first foray into the US 
capital markets since 1949. 

Citic paper has received a 
generally good reception in 
international markets because 
bankers assume the conglom- 
erate, which is one of the stan- 
dard-bearers of China's social- 
ist-market reforms, carries the 
full backing of the Chinese 
government. 

In Beijing, a European bank 
spokesman said Citic had 
“developed a very good image," 
and was now engaged in "an 
incredible range of activities." 

But when it came to assess- 
ing the quality of its assets it 
was difficult to make judg- 


ments. “When examining the 
balance sheet yon don't really 
know what you have in front 
of you,” he said. 

Citic lists total assets of 
YnSLSBb n, but provides little 
d etail The company is heavily 
involved In real estate, for 
example, but beyond a sketchy 
reference in its annual report 
to the “strong momentum" of 
Citic’s real estate business, 
information is sparse. 

Bankas cite as an example 
of the difficulties assessing 
details of Citic’s activities the 
case several years ago of losses 
incurred in the Bank at Credit 
nnd Commerce International 
fiasco. Citic may have lost as 
much as $100m - Otic officials 
say it was mneh less - but no 
reference ever appeared to Usd 
episode in its balance sheet. 

Similarly, only glancing 
mention is made in Citic’s 
annual report of a manufactur- 
ing venture in ^haanri prov- 
ince with some 20,000 employ- 
ees which is proving 
to rehabilitate and is therefore 
a drain on resources. 

Citic’s charter requires it to 
play a role in transforming 
state-owned enterprises. The 
Shaanxi project, involving con- 
version of a defence factory to 
civilian use, was undertaken 
for political rather than com- 
mercial OS C ttiC offi.- 

mh ruefully admit. 

In the past year, when 
reported profits woe 882 per 
cent higher, Citic has also 
taken over Luoyang Mining 
Machinery Plant, which has 
20,000 employees, with the aim 
of revitalising another flagging 
state-owned enterprise. Citic 
officials say that thp Luoyang 
enterprise, re-named the Citic 


Heavy Machinery Company, 
will be, for the time being, the 
fact of 5iK»h burdens assumed 
from the state. 

But tills does not mean that 
Citic - farf rating both its main- 
land activities, which account 
for about two-thirds of the con- 
glomerate's business, and its 
growing investments abroad - 
is about to alter a consolida- 
tion phase. 

As Mr Wei Mingyi, Citic’s 
chairman, told the Financial 
Times last year "If a company 
constrains itself by consolidat- 
ing at a certain level, then I 
think that company wouldn’t 
have a future. Business is 
always aggressive: maybe 
sometimes you win, sometimes 
you tafl.” 

C itic Pacifc, the Hong 
Kong listed arm of Citic 
Hong Kong (Holdings), 
is an example of this aggres- 
sive stra te gy, with a fast -grow- 
ing portfolio of investments in 
tfltommirnmirflHnwg aviation, 
property and finance in Hong 
Kong. 

The company is also becom- 
ing active on the mainland 
with recent acquisitions In the 
Wuxi area, west of Shanghai 
These have included a steel 
plant, a telecommunications 
cable factory and a precision 
metal piping plant - invest- 
ments totalling about $100m. 

Citic Australia is similarly 
engaged in rapid expansion. 
Building on its 1986 investment 
in an aluminium smelter west 
of Melbourne, it recently 
acquired a meat processing 
company in Australia; pur- 
chased 10 per cent of Yaohan 
International a Japanese 
retailer; established a trading 


company in Singapore; and 
late last year listed an invest- 
ment company. C.H. Chinn 
Investment, in Australia. 

At house, Citic’s main prior- 
ity, according Mr Yao Jlnrong. 
a vice-president, is the develop- 
ment of Daxic Island off the 
coast of Zhejiang province, 
south of Shanghai. Citic plans 
to spend Ys4bn with additional 
investment of YiriObn in devel- 
oping a deep-water port and 
economic development zone. 

One of Daxie’s main func- 
tions would be to provide an 
outlet for China’s land-locked 
south-western provinces, 
including Guizhou and 
Yunnan. 

Citic is also involved in a 
consultancy business, power 
development, telecommunica- 
tions (including the manufac- 
ture of pagers), cable televi- 
sion. finance and trading. All 
this Is placing substantial 
demands on its management 
capabilities. 

Vicepresident Mr Yao is not 
exaggerating when he 
describes Citic as a “very 
important financial Institu- 
tion". With its high level con- 
nections - its founder, Mr 
Rong Ylren. is now China's 
vicepresident - the company 
is keenly sought as a mainland 
partner by foreign investors. 
“They are still a name-card 
which opens a lot of doors in 
China," said a western busi- 
nessman. 

As Citic’s business exponds, 
however, and its demand for 
capital continues to grow, 
bankers seem certain to 
demand greater accountability, 
but as' the European banker 
said: "They will only be as 
good as the country itself" 


Thai oil refiner seeks stock exchange listing 


Thailand’s largest refiner, Thai 
Oil, plans to seek a listing on 
the stock exchange of Thailand 
early next year. It wants to 
float 25 per cent of its equity 
capital, write William Barnes 
and Renter in Bangkok. 

The company, which is 
partly state-owned, will soon 


become a public limited com- 
pany. after a six-year wait for 
government approval. Its new 
status will be a first step 
towards a stock exchange list- 
ing. If the 74m shares were 
sold at the expected price of 
Bt40, the float would raise 
some Bt3bn ($119m), which 


would be used to reduce debt 
and expand refinery 
operations. 

Thai Oil had net profits of 
Bt36ta in the year ended Sep- 
tember 30 1993. Assets at May 
31 this year were Bt47.7bn, 
while liabilities were Bt38bn. 

The National Energy Policy 


Committee agreed in May that 
the state-owned Petroleum 
Authority of Thailand could 
retain its 49 per cent stake in 
Thai Oil if it persuaded its 
partners to reduce their hold- 
ings; without their co-opera- 
tion, the state group would see 
its share diluted to 37 per cent 


4-' 




rt' 


BEAR 

STEARNS 


Warner-Lambert Company 


and 


Glaxo Holdings p.I.c. 


have formed a joint venture in the field 
of over-the-counter pharmaceuticals 


We acted as financial advisor to 
Warner-Lambert Company. 


Bear, Stearns & Co. Inc. 


U.S. $150,000,000 



Bank or Ireland 

f£R8(i&cfMrf ftifretamf by Charter in i7B3.antthanafiiiaatodBablUy) 

Undated Floating Rate Primary Capital Notes 

*n accordance wflh tfie provisions of the Notes, notice b hereby 
? ie .^ reo mowh ln iwo« Period from June 14, 
the Notes win carry an interest Rate of 
4j»i25% per annum. The Interest payable on the relevant interest 
payment date, September 14, 1994 wiu be U.S. $122.99 oer U.S. 

$10,000 principal amount. 

By: The Chase Manhattan Bank. N.A. 

London, Agent Bank 


CHASE 


June 14, 1994 


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five government contract 

Over the past three yogtl 
MAS has been suffered amtit' 
financial turbulence. Pre-tax 
profits for the year enfiac 
March 31 1994. at MKtiu£[ 
were 90 per cent down on kfcr 
previous year. 

An ambitious expansion pn> 
gramme involving the pur- 
chase of 72 aircraft 
M$l0.6bn in the 1991-86 p mkA 
has strained finaacted 
resources. .;'■■■ 

Mr Tajudin's flagship esq* 
pony is the listod Technology 
Resources (TR1L a fest-fnmfeg 
cellular communication* cat* 
cent 

Mr Tajudin also has a do* 
trolling stake In a private com- 
pany which has Launched Urn 
Russian communications " 
Iites with the Idea of 
space to regional users. 


Saudi bank 
plans to 
double its 
capital 

By Mark Ntctiotaon 
in Cairo 

Saudi Investment Bank, fee 
kingdom's smallest by 
isatlon, plans to double tte ; 
capital to SRIBOza (t4S.fta$ 
through a anchor-one Offer Of 
900,000 shares to sbareboMon; 
The share transfer will ba 
for by a SR90m transfer ft xm 
reserves. 

The transfer will keep Site 
shareholding structure. Tbs 
bank Is more than 40 per wit 
owned by Saudi private share- 
holders, with the remainder 
being held by local and inter- 
national banks, inclndteg 
Chase Manhattan (which has 
15 per cent). Industrial Bank 
of Japan and J. Henry Schra- 
der Wagg. 

The bank said the plnimei 
capital Increase, which ts to to 
put to a shareholders' meeting 
in Riyadh on July 11, worid 
“give some psychological fee- 
ing to oar customers and cor- 
respondents'* and “bring oar 
capital closer to that of our 
peers'*, but not alter the 
bank's strategy. 

“We are going to conti n ue 
on our strategy to be a quality 
corporate bank for the king- 
dom, catering for sophisticated 
business clients," it added. 

SIB, which has only 16 
branches in the kingdom, bat 
always seen itself as a "bou- 
tique” corporate lender, with «: 
strong emphasis also on pri- 
vate banking as a leading bro- 
ker In Sand! Arabia's stock 
market. Banks monopolise 
direct brokerage In the king- 
dom’s $50bn-capitallsed stock 
market, which is closed to for- 
eign investors. 

SIB’s recapitalisation will 
not affect its position as one of 
the kingdom’s smallest banks. 
It is among the last of the 
kingdom’s n listed commer- 
cial banks to recapitalise over 
the past few years, during 
which most banks have 
advantage of the post Gulf war 
stock market boom to issue 
new stock. 


# 







29 



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_gNANCfAL TIMES TUESDAY JUNE 14 1994 

international companies and finance 

t0 Managing director of 
over 50%’ Norwegian bank resigns 


of group 

By Christopher Parkes 
in Frankfurt 

KlOckner & Co, the German 
trading company, plans to boy 

'lost over in per cent" Of Com- 
puter 2000, a fast-growing Ger- 
man software and hardware 
distributor. 

The company it bad not 
bought any Computer 2000 
shares in the open market 
bad no plans to do so, accord- 
ing to a statement yesterday. 

The statement followed an 
announcement of the barest 
details of the plan late on Fri- 
day after the Computer 2000 
share price had risen Sharply 
during the day. 

Kldckner said the control- 
ling holding would be pur- 
chased from the Colonia insur- 
ance group and a private 
shareholder, Mr Arend Oetker. 

The parties to the deal bad 
agreed not to release any 
financial details, although 
Computer 2000 is worth an 
estimated DM400m (2240m) at 
c u rre n t share prices. 

KlOckner, a trading subsid- 
iary of the Viag conglomerate, 
said the purchase marked its 
entry into a new business sec- 
tor, although its new subsid- 
iary, one of the biggest distrib- 
utors in the European 
computer industry, would con- 
tinue to operate as a free- 
standing enterprise. 

This suggests that Com pute - 
2000 is likely to continue the 
aggressive expansion pro- 
gramme which ban character- j 
ised its progress since it was ! 
founded in 1963. 

Computer 2000‘s long- 
declared aim has been to gen- 
erate sales of DM1 Obn by the 
year 2000. Turnover grew 54 
per cent last year to DM&8bn, 
and rose 40 per cent to 
DM1.94bn in the first six 
months of the current year. 

The deal is expected to be 
rubber-stamped at a meeting 
of the supervisory board next 
month and although it has yet 
to be approved by toe federal 
cartel office, no objections are 
expected. 


By Karen Fossil in Oslo 

Mr Leif Kievan, managing 
director of state-owned Fokus 
Bank. Norway’s third-largest 
commercial bank, yesterday 
resigned following revelations 
of alleged irregularities con- 
nected to the disposal of a 

property shareholding. 

Mr Kievan has led Fokus 
through a successful restruct- 
uring, in which the bank has 
been cut back to a regional 
operation serving mid-Norway 
from a loss-making operation 
with branches throughout the 
country. 

His resignation follows 
reports in which it emerged 
that Fokus Etendom, the 
bank's property unit which is 
i chaired by Mr Kievan, alleg- 
edly sold a 37 per cent stake in 
a shopping centre in southern 

NEWS DIGEST 

Foschim turns 
in 26 % income 
improvement 

Foschini, the South African 
clothing and jewellery retail 
group, continues to make prog- 
ress. increasing attributable 
income 26 per cent to R 129.9m 
(235.8m) for the year ended 
March despite a difficult trad- 
ing environment, writes Ms rk 
Suzman to Johannesburg. 

After tax. profits rose by 39 
per cent to Rl43.7m, but were 
diluted by an extraordinary 
item of BUBm, largely related 
to goodwill and trademark 
costs following an acquisition. 
Turnover increased 24 per cent 
to R1.44hn. 

Mr dive Hirschsohn, manag- 
ing director, said: “We used 
aggressive marketing to max- 
imise trading opportunities 
and were well positioned for 
the first tentative movements 
of toe economic upswing.” 

He said turnover had been 
boosted by an exceptional sec- 
ond half The company con- 
trols Oceana Investments, 
which has a 38 per cent stake 
in Etam, the UK retailer. 


Norway, at cost, to close 
acquaintances of the 
bank. 

The report, published last 
week in Norway, claimed that 
the buyers of the farmmdstre- 
det shopping centre stood to 
make a gain of up to NKr20m 
($2&n) on a resale of the prop- 
erty. 

The board of Fokus held an 
emergency meeting at the 
weekend and yesterday 
announced Mr Kievan's resig- 
nation. 

While the board did not spe- 
cifically confirm that Mr Kie- 
van had full knowledge of the 
affair, it said greater caution 
should have been exercised 
over the unit's “informal talks” 
with the buyers of the 
Farmandstredet shareholding, 
and that Mr Kievan should 
have been sufficiently 


Ruling on Indian 
finance companies 

The Reserve Bank of India has 
made it compulsory for all 
finance companies with net 
owned funds of more than 
Rs2Qm (2637,602) to get a credit 
rating by next March, as 
part of the reform of the finan- 
cial sector, Reuter reports 
from Bombay. 

Companies can get a rating 
from any one of three credit 
agencies. 

They will need a minimum 
rating of FA- from Credit Rat- 
ing and informat i on Services 
of indie MA- from Investment 
Information and Credit Rating 
Agency of India or BBB (FD) 
from Credit Analysis & 
Research. 

Tata Metals slides 

fodian Tata Metals, which is 
part of the Tata Iron and Steel 
group, reported a steep decline 
in net profits for the year 
ended March. Renter reports 
from Bombay. 

Net earnings foil to Rs46.ftn 
(21.5m) from Rs7S_2m in the 
previous year. 

Turnover was slightly lower 
at Rs660m, against Rs684m. 


informed about the disposal 

The board has appointed Mr 
Bjame Borgersen, an executive 
with Fokus Bank, as Mr Kie- 
van's interim, replacement 
until a permanent appointment 
is marin 

• Christiania Bank. Norway’s 
second-largest commercial 
bank, has entered negotiations 
to acquire Vestenfieldeske 
Bykreditt, a mortgage institu- 
tion with assets of NKi7.4bn. 

The parties hope to conclude 
the discussions as soon as pos- 
sible. Christiania said. With 
the mortgage company’s pref- 
erence shares trading at 
NKrllS each, it has a markafc 
value of around NKr32Qm. 

Christiania s a i d negotiations 
with the Vestenfjeldeske’s 
board were hut that 

it had not yet mad ** an offer for 
the company. 

Malaysian 
conglomerate 
in PNG deal 

| By Kieron Cooke 
In Kuala Lumpur 

MBf Holding s, the diversified 
Malaysian conglomerate which 
Is one of the c ountry' s biggest 
stock market listed mwipanipe, 
has purchased the Papua New 
Guinea based Wit. Carpenter 
group for M$151m ($58m) in 

rash. 

WJEL Carpenter and its asso- 
ciate companies are a long 
established group whose activi- 
ties indude motor vehicle dis- 
tribution, shipping, transport 
and financial services in the 
South Pacific region. 

MRf is making the purchase 
through its wholly-owned 
Hong Kong subsidiary, MBf 
Asia Capital Corporation Hold- 
ings (MACCH). 

MBf describes itself as Mal- 
aysia's biggest finance 
company. 

It is widely expected that 
MRf will s eek an international 
listing for its MACCH subsid- 
iary later this year, possibly in 
New York. 


Opting for disarray over confusion 

Argentina’s pension reforms are proving difficult, writes John Barham 

A rgentina’s private pen- per cent levy on wages. Alter- 
sion system is off to a natively, people can dedde to 
slow start - and ft has remain In the state system. 


A rgentina’s private pen- 
sion system is off to a 
slow start - and ft has 
not been helped by bureau- 
cratic disarray and stronger- 
than-expected resistance to 
change by pensions contribu- 
tors. 

The main difficulty has been 
government regulations limit- 
ing the marketing campaign of 
the new pension fraud manage- 
ment companies to barely two 
months, from May 2 until the 
end of June. 

The result has been a bliz- 
zard of confusing and some- 
times misleading sales advice 
by toe 21 fund managers com- 
peting for a slice of Argentina’s 
monthly pension cashflow, 
estimated at between $200m 
and 2300m. 

Some 5m pensions contribu- 
tors must eventually choose 
between remaining in the state 
system or Joining a private 
scheme. So far, pension fund 
managers report that less than 
150,000 have moved into the 
private sector. 

Private pension fluids are to 
be financed by a compulsory 11 


per cent levy on wages. Alter- 
natively, people can deride to 
remain In the state system. 
Although ridden by deficits, 
inefficiency and allegations of 
corruption, the state scheme 
does offer a guarantee against 
the bankruptcy and fraud that 
have beset Argentina's finan- 
cial system for decades. 

Furthermore, contributors 
who have chosen the private 
schemes cannot return to the 
state system. Tfris has under- 
standably encouraged potential 
savers to wait and see just how 
private schemes progress 
before burning their boats and 
leaving the state system. 

Signs of disarray in the pen- 
sion fund regulatory agency 
has further discouraged people 
from moving into the private 
sector. Three senior officials of 
the Pension Fund Superirtten- 
dency have resigned over what 
they claim was inadequate pol- 
icing of private pension mar- 
keting campaigns. 

Mr Oscar Rabinovich, who 
resigned as assistan t superin- 
tendent of the PFS, says: “H we 
are controlling publicity this 





Carlos Menem: recently 
added to the confusion 

badly. I do not want to i magine 
what is going to happen [later]. 
I am basically in favour of the 
new retirement system, bat it 
can only work if toe state exer- 
cises strong controls.” 

- For their part, private pen- 
sion fund managers complain 
that the PFS is excessively 
rigid and bureaucratic. 

President Carlos Menem 
recently added to the confusion 


when he revoked a danse that 
ordered stateowned Banco de 
la Nacion Argentina (BNA), 
Argentina’s biggest bank, to 
offer dollar-linked pensions in 
competition with the private 
funds. 

The clause was the price of 
the congressional Peronist 
party’s support for the contro- 
versial legislation. However, 
fund managers say BNA’s dol- 
lar-indexed pensions would dis- 
tort toe financial system. Con- 
gress is now working on a new 
system of state guarantees to 
be provided by BNA. 

Still, some observers hope 
the planned new pension sys- 
tem can provide the catalyst 
for reform within. Argentina’s 
rudimentary capital markets. 

Mr Ted Truscott, principal of 
US fund managers Scndder, 
Stevens & Clark, says “the 
long-range impact of pension 
funds cannot be underesti- 
mated”. He expects private 
funds to boost Argentina’s low- 
savings ratio, reduce its reli- 
ance on imported capital, and 
provide borrowers with long 
term finance. 


«■*" 

Notice Concerning Merger 

OSAKA CEMENT CO., LTD. 

Bearer Warrants io subscribe for shares of common stock of 
Osaka Cement Co.. Lid. (the -Warrants*) issued in conjunction with its 
U.S. StOO, 000.000 

per cent. Guaranteed Bonds 1995 (the “Bonds") 

Purvuani to Clauses * CA> and «BJ of die Iubmmu drted W Au(N«. IWlrelattoB 
io the Warrant* and the rote* of dw Luxembcarg Stock Eadiange. nonce to 
} IX riwTihai Osaka Cement Co. Ud. (-Osaka CemeiiO entered in to a 
mrrerriftreenmt with Sumitomo Cement Co.. Ltd. CSamhomo t.«wna on 
SblUay. BMUapan time. the aame is bertinift»aw»nbW “^wlnch Osaka 
Cement shall »ei*e with Snmitoow Cement (the rondtuun* corporation being 

alw eftrcl ** %F eaml 

itSera of starts Of common stock of Osaka Cement regtaered to the 

^^°re°o?*ai«^ t «« mon Stock of Osaka Cement registered in the 
^ of beneficial shareholder* of Oaaka Cement at M 

W 4 *"' liemhM rowotangr each such atare beld by them Tor 0.75 

October. Btodt of SundtomoCeaient and the holder* of the W^iranta will 

aurraof common w ___ gQ^cnbe. upon exercise, tar shares of 

** cfLilomo Ceiwrtat the adjusted wbseription price mentioned 

ISSSStSSSSSC IPded on these do* «*««« similarly to the 

to rtfcct for the Warrants will 
aSpUoTprice per Sumitomo Cement stare 

regl si ration mentioned above: yen 506 

Current Subscription ftk*? Yen 67* 70 

.1 a. I JT “2 «»* .r 

-fflBKfS£S5.o-«a.- 

Sr The Sams Bank Limited 
.... As Principal frying Agent 

14 lh June. 1594 , 


NOTICE CONCERNING MERGER 

Sumitomo Cement Co., Ltd. 

tth« "Company"! 

Bearer Warrants to subscribe up to ¥22,327,500,000 
for shares of common stock of the Company 
and 

Bearer Warrants to subscribe up to ¥1 9,530,000,000 
for shares of common stock of the Company 
and 

Bearer Warrants to subscribe up to ¥22,020,000,000 
for shares of common stock of the Company 

Pursuant to Clause 4 (A) of the Instruments dated 30th August. 
1990, 5th March, 1992 and 22nd July. 1993 in respect of the 
respective Warrants listed hereinabove and the rules of the 
Luxembourg Stock Exchange, notice is hereby given to the holders 
thereof as follows: (a) the Company entered into a merger 
agreement (the “Merger Agreement*) with Osaka Cement Co„ 
Ltd. ('Osaka Cement*) on 31st May, 1994 (Japan time; the aame fs 
hereinafter applic a blefc(b) the Merger Agree me ntwill be submitted 
to to e Ordinary Genera) Meeting of shareholders of the Company 
for approval on 29th June, 1994; (cl subject to the approvals of the 
Merger Agreement by the shareholders of the Company and of 
Osaka Cement, the Company will merge with Osaka Cement (the 
cominumgeorparation being the Companyfupon the commercial 
registration of the merger being made with the appropriate Legal 
Affairs Bureau under the Commercial Code of Japan (which 
registration is expected to be made on 21st December, 1994); (d) 
no cash or other property will be payable or deliverable to 
shareholders of the Company as a result of the merger and (e) 
none of the Subscription Prices applicable to the respective 
Warrants wifi be adjusted as a result of the merger. 

Sumitomo Cement Co„ Ltd. 

By: The Sumitomo Bank, Limited 
Dared: 14th June, 1934 as Principal Paying Agent 


1 OW COST ■ u "' ' [ "" J ■ - v '• :: > ,, ' v 

SHARE DEALING SERVICE ? 1 

i ■iM-.n-Mir.mM €10 m iviv< m id 

OTM'XIMrMON TO liC-VIH ; 


Eurohedge 


LIFFE’s Three Month 

ECU Futures Contract. 



The greater your ECU interest rate exposure, the more you 
should know about this important risk management tool. 

UFFE has now introduced two additional delivery months in 
response to member and market demand, bringing the total 
number of delivery months to six. This has been made 
possible by the renewal of the designated market maker 
scheme. 

The following major institutions wiil continue to ensure 
liquidity, upon request, in all delivery months of the three 
month ECU futures contract: 

istituto Bancario San Paolo cH Torino S.p JL 

Kredretbank N.V. 

Midland Global Futures/Div Midland Bank pic 

(acting on behalf of Midland Global Markets/Div Midland Bank pic) 

NatWest Futures Limited 

(acting on behalf of National Westminster Bank Pic) 

UBS Futures & Options Limited 
(acting on behalf of Union Bank of Switzerland) 


For further information, please contact Angelo Pronl or 
Jonathan Seymour at UFFE on +44 71 379 2467/2425. 


Cannon Bridge. 
London EC4R3XX. 
Tet -*-44 71 623 0444 
Fax: 444 71 248 5864 


LIFK 


The London international Financial 
Futures and Options Exchange 


Shar 
profit ft 






■mm 


S in 


ITOSS 


Fortis had an excellent 
The pre-tax result for t 
banking sector almost q 


a? of 1 9943B'3 «s||! 

£5? . •. ^ ^ ' 

\ 04 . Net profit increased million. 

Bptor rose by 19% to ECU that of the 

U 55.1 million. : 


mmmm 


i ff 

Si' 

Nat equity 


§ Fortis first quarter 19&4<r 

* 1994 "'zeidday 

io9.7.v,V’’-i : ^r^ 

: Insurance 132.9^-- i 

; banking 56/r- r ' Hkffy 

4,l5aft^: 

.'.'■'■•f -t v ->yy .“«+• 

31-03-1$9? '3T&7&3 ' 

4,128.2 4,083.8 


increase in % 
29 






figures parent compantes flra£ i 




•V’ 'r.f 

mm- 


•h BxtlS AM©? |r»NLG) 
• • T9®4 • ' 1993 


Earnings per ordinary share 


Equity per ordinary share 


40 .2 


:;&4&W94. 31-12-1993 31-03-1994 


:2$Xy 2.122 


31-12-1993 

75.43 


100 BEF = 1.96 Storing 
1 NLG ■ 0 36 Stertng 


'®£w 






Prospects 

On the basis of 
about the mov 
expectation tha 
is subject to^p 
interest rate^D* 

Fortfe: 

Fortis ^^^jro 


u:. 

■. -j. 'l . i .. ' .% "V ■ 

a . 

• 


j^eved in the first quarter Fortis is optimistic 
9^4 as a whole. Fortis is standing by its 
be higher than for 1993. This forecast 
as and sharp fluctuations In exchange and 


insurance group, consisting of a large 
United States and Australia. The two parent 
&8$%-S$6''Sr8ffrest in Fortis. On 9 June 1994 their names, 
kV;' AMSy, changed into Fortis AG and Fortis AMEV 
' Slbck exchange securities will be traded under the 


% ■; iff ^ ?£ v .r. .7- # ■ .. i 

^vZ-.'if-rTV 


v fefl to receive a copy of the first quarter report 1094 
J 1993 annual report of Fortis and its two parent 

pteass 0001801 FOftis, Gommuifcation: 

T*;f ' r‘x., ^b^avard Emile Jacqmein 53 AnSwnedeslaan 1 0 

BA UtrecM 

^ftiSapim The Netherlands 

''W 32.(0)2.2208135 TeL: 31 .(0)30.573398 

iWSiifyr.i-:;" , ra:ftfx : 32.(0)2.2208092 Fax: 31 .(0)30-522394 




Fax: 31 .(0)30.522394 




financial TIMES TUESDAY JUNE 14 1994 

INTERNATIONAL CAPITAL MARKETS — — - 


Poll results help drive prices lower across Europe 


By Conner Middeimann 
In London and Frank 
McGurtyfo New York 

European government bonds 
took another tumble, pressured 
by a variety of political and 
economic factors. The seU-oS 
was exacerbated by thin cash 
market conditions, with most 
of the action concentrated in 
the futures markets. OK bonds 
suffered particularly heavy 
losses. 

"Investors are stm sitting on 
the sidelines, while the specu- 
lative community is dominat- 
ing," said Mr Kit Jockes, inter- 
national economist at 
S.G. Warburg Securities. 

Uncertainty ahead of today’s 
US May consumer price and 
retail sales data also kept par- 
ticipants nervous. 

Following Friday's short 
squeeze, many markets started 
the day on a slightly firmer 


tone. However, that quickly 
gave way to renewed selling 
when the results of the week- 
end's European parliament 
elections hit many markets. 

One of the worst affected 
was Spain, where the govern- 
ing Socialist party’s weak 
showing in the European and 
Andalusian ele cti ons pr o mpted 


GOVERNMENT 

BONDS 


tears of an early general elec- 
tion. Prime minis ter Felipe 
Gonzales' Catalan coalition 
partner said it would continue 
supporting the minority Social- 
ist government, and rejected 
the need for a parliamentary 
vote of confidence. 

However, one dealer warned 
that Mr Gonzdles "will he at 
the mercy of the Catalans, 
which doesn’t make for a sta- 


ble political outlook”. 

The September contract of 
the Spanish government bond 
future fell L62 points to 9&50. 

■ In France, where the anti- 
European candidates made a 
strong showing in the Euro- 
elections, prices also fell 
sharply on fears that confi- 
dence in the government's poli- 
cies aimed at European inte- 
gration would be undermined. 
The September contract of the 
notional bond fixture on Matif 
fell by L62 points to 115JyL 

The spread between the 
higher -y ielding French l O-year 
benchmark bond against its 
German counterpart widened 
to 44 basis points, from 39 hasis 
points cm Friday. 

■ German bonds were 
steadier, helped by the feet 
that Chancellor Helmut Kohl 
was one of the few European 


leaders whose government was 
bolstered by the elections. Ten- 
year cash txmds fell less than a 
point, led largely by the bund 
fixture. The September contract 
on LIfEe broke several key sup- 
port levels before closing 
around 9125, down US points. 

■ UK gilts fell about 1V4 point, 
dogged by the ruling Conserva- 
tive party's poor showing in 
the elections. Despite support- 
ive producer price data, dealers 
reported continued inflation 
worries, and are nervously eye- 
ing Wednesday's raft of data, 
which includes May retail 
prices, April average earnings 
and May employment 
Moreover, the Bank of 
England on Friday is expected 
to announce its next gilt 
auction. In the absence 
of significant investor 
demand, “the spectre of fresh 
supply is unnerving the 


market*, said a dealer. 

The September long gilt 
futures contract fell by 
points to 100&. 

■ Although prime minister Sfi- 
vio Berlusconi's party pot on a 
strong performance in the 
European ejections, Italian 10- 
year bonds dropped more than 
two paints on fears that Fri- 
day's constitutional court rul- 
ing ordering Hip g w w nwiwit to 
pay trillions of lire in bad: 
pensions would worsen the def- 
icit position. 

The September bond future 
on Liffe fell by 2JJ8 points to 
106.1& 

■ US Treasury bonds retreated 
in Hi» morning amid concern 
that today’s economic data 
would reveal an upturn in con- 
sumer price inflation 

By midday, the benchmark 
30-year government bond was 


fi lower at 868, with the yield 
rising to 7.338 per cent. At the 
shor t end, the two-year note 
was down K at 100&, to yield 
5.873 per cent 

The trading week opened 
quietly, with many investors 
reluctant to commit fresh 
foods to the market until after 
the Commerce Department 
releases Its May co n su m er 
price index this morning. 

Until late last week, analysts 
had not viewed the report as a 
potential obstacle. However, a 
surprising gain in core pro- 
ducer prices, revealed by the 
government on Friday, has 
raised some trepidation among 
traders that inflation on a con- 
sumer lewd, may prove to have 
been stronger than expected. 

Analysts, however, are gen- 
erally sticking to their fore- 
casts of a 0.2 per cent gain in 
the CPI, and a 03 per cent gain 
in core prices. 


GECC’s return to D-Mark sector brightens dull day 


NEW INTERNATIONAL BOND ISSUES 



Amount 

Coupon 

Plrtoa 

Maturty 

Faaa 

Spread Book runoar 

BdTOKtr 

m. 

% 



■to 

hp 

US DOLLARS 

Oty of Vaosmtaast 

50 

to 

aaeea 

JULISSB 

undrid. 

Gckbnan Sacha briL 

D-MARKS 

Gmaral Bactric Cap£orp^ 

250 

2375 

99L77H 

JU.1988 

0250 

+20(5JCW-9G)SBC FranWurt 

GUILDERS 

MO 

250 

7JS5 

10a 125R 

JUL2003 

n»c 

+30 (ST4K-C3) NBxSaflng FkiancW MMa. 

ITALIAN LKE 

Oradtop OVaaa Banh(CwJ(<4 

200bn 

1025 

10270 

jutaxw 

1X75 

- San Paoto, Turin 


FM terms and rai-caWrie unless stated. The ]>Wd spread fiver rele van t government boncQ at launch is suppBod by the lead 
manager, ^floating rata mu. Ft fixed tanner price: toes atm shown at the reciter ImL a) 3-cuft Uber »KM. b) long let couucn. Q 
Issuer may convert on 5S7/9& into FRN paying 6-mth Libor +16%. 


By Antonia Sharpe 

Renewed downward pressure 
on European government bond 
markets restricted the volume 
of new issues in the eurobond 
market yesterday. Among the 
day's meagre offerings was 
GECC’s first appearance in the 
D-Mark sector since December 
1993. It raised DM250m through 
an issue of five-year euro- 
bands. 

Lead manager SBC Frank- 
furt said the bonds were 
mainly targeted at cash-rich 
investors in Switzerland and 
the Benelux region, sftn» the 
higher yields on offer In the 
German domestic bond marfrgt 
limited their appeal to inves- 
tors there. 

GECC is believed to have 
swapped the proceeds of the 
offering into fixed-rate dollars. 
The pricing of the bonds, to 
yield 20 basis points over the 
Trauhand’s 5% per cent notes 
due 1999, was thought to be 


fair. However, syndicate man- 
agers said the fell in German 
government bonds - caused 
some problems during the 
launch. In the afternoon, the 
bonds were trading around 
99.70, down from a re-offer 
price of 99.77, white the spread 
widened slightly to just over 21 
basis points. 

GECCTs deal follows a slmi- 


INTERNATIONAL 

BONDS 


lar offering from Rabobank 
last Friday, via CS First Bos- 
ton, which, was also targeted at 
Swiss retail Investors, who face 
heavy D-Mark redemptions in 
the next few months. Rabo- 
bank's five-year bonds were 
launched at a yield spread of 17 
basis points, but were trading 
at a spread of 21 basis points 
yesterday, partly reflecting the 
market's weakness. 

Argentina is due to launch 


Its widely-expected D-Mark 
offering today or tomorrow, via 
Deutsche Bank. The three-year 
issue is likely to raise around 
DMSOOm. Syndicate managers 
involved in the offering 
reported good demand for the 
deal which, they said, was 
unlikely to be adversely 
affected by any further futures- 
driven weakness in the bund 
market 

The stream of euroguilder 
issues continued yesterday 
with the launch of a FI 250m 
offering of nine-year bonds 
fro m NIO, the Dutch govern- 
ment-guaranteed development 
aid agency. Lead manager 
Nibstrating Financial Markets 
said the unusual maturity 
partly reflected the over- 
hang of 10-year papa- in the 
market 

The bonds, which were 
priced to yield 20 basis points 
over the 614 per cent Dutch 
government bond due 2003, 
were placed mainly with Dutch 


investors. When the bonds 
were freed to trade, the spread 
widened out slightly to 22 basis 
points. 

Vaesteraas, Sweden's sixth- 
largest city and the home of 
ABB Asea Brown Boveri, the 
Swiss-Swedlsh electrical engi- 
neering group, raised $5Qm 
through an offering of five-year 
floating rate notes. The 
discounted margin on the 
notes was 26 basis points over 


Libor at the launch, which 
narrowed to 25 basis points 
when the notes were freed to 
trade. 

Lead manager Goldman 
Sachs said the notes were sold 
mainly to investors in Bel- 
gium, thtmg h there was also 
some interest from Sweden and 
the UK. It is believed the pro- 
ceeds of the offering were 
swapped into floating-rate 
Swedish kronor. 


• Standard & Poor's has 
revised the outlook on its 
A-plus implied long-term 
rating on the Republic of 
Korea, to negative from 
positive. 

The outlook revision has 
been prompted by the height- 
ening of tensions on the Kor- 
ean peninsula as North Korea 
refuses to comply with 
dumatidg for inspection of its 
nuclear facilities. 


Mixed reception 
for Swiss move 
on bonds in yen 


By Tracy Corrigan 

The Swiss National Bank’s 
announcement that it will 
allow bond issues denominated 
in yen, or linked to yen, to be 
launched in the Swiss market 
was given a mired reception 
from bankers yesterday. 

The move follows lobbying 
by the Swiss subsidiaries of 
several Japanese securities 
firms, according to Swiss bank- 
ers. Some Japanese comp anie s 
are keen to issue equity-linked 
debt in yen rather than in 
Swiss francs, to avoid foreign 
exchange risk. 

By issuing such unlisted 
bonds in the Swiss market, it is 
possible to avoid the stricter 
rules on documentation and on 
secondary market trading, 
which, are enforced in the euro- 
bond market 

Such issues - known as 
Alpine bonds - are already per- 


mitted In US and Canadian dol- 
lars, and Gets, but the market 
has been slow to develop. 

-The move is driven to 
borrowers rather than tfretf- 
tors," said one Swiss banker. 
-The question Is whether any 
retail investors wilt be inter- 
ested." 

Another banker in Zurich 
expressed concern that tin 
move could encourage the 
Swiss market to be aeon at * 
route for selling second-rate 
bonds. "We don’t want to 
regain the reputation wo hid 
In the late 19808 as a juhk bond 
market with tripta-A prletngi" 
he said. 

A SFTlOOm convertible feme 
for Hostden Corporation, whfeh 
has already tapped the Mm 
market, could be the first at 
th* new genre. The duel wacfld 
be redeemable in yen. if tin 
bonds were not converted to 
maturity- 


LSE advises on stock 


borrowing practice 


By Nonna Cohort, 
investments Corraepondant 

The London Stock Exchange 
has published a guide on stock 
borrowing and lending aimed 
at Informing lenders about rec- 
ommended best practice. 

The booklet, developed In 
conjunction with the Bank of 
England’s stock borrowing and 
tending committee, details the 
exchange's role in regulating 
activity- Market participants 
generally expect a surge in 
demand for borrowed equities 
once the stock exchange aban- 
dons Us traditional two- and 
three-wed: account settlement 


period on July 18. and mom 
to a system of "rolling settle- 
ment”. 

Some market-makers four 
obtaining securities to cover 
“short" positions In theft pro- 
prietary trading books will be 
more difficult, forcing rfumgaa 
in the way they trade for their 
own account There is Abo con- 
cern from regulators that insti- 
tutions such as pension 
schemes which agree to engage 
in securities tending may fefl 
to folly understand the risks. 
Stock Bonvumg and Lending. 
The London Stock Exchange. 
Market Supervision Dftrfifoa, 
071-797^653. No Charge. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rod Day's MfeoK Month 

Coupon Data Price change Yield ago ago 


Italy 

■ NOTIONAL ITALIAN GOVT. BOND (HTP} FUTURES 
(UFFQ* Ura 200m IQOths of 100% 


FT-ACnJARBES FIXED I NTE RES T INDICES 

MaMcN Mon Day's M Accrued «dadj. 

UK gate Jmb 13 eftmg* % Jm to Internet ytd 


— Low ootqKm yMd — * — Medi um 
Jin 13 Jon 10 Yt ton Jun 13 




i yMd-* ■— High ooupon jrisM—* 
Yr. ago Jun 13 Jun KjVfejQO 


Aua&aM 


91000 

09/04 

100X700 

_ 

8X5 

8X6 

8X2 


Opm Sattpric* 

Change 

Kgh 

Low 

Eat voi 

Opm InL 

Belgium 


7.250 

04AM 

BSX500 

-1X00 

7X0 

7X4 

7-41 

Sep 

108X0 10216 

-2.08 

10220 

10203 

53013 

60044 

Canada* 


6X00 

06/D4 

85.1000 

-0700 

278 

8X6 

2X8 

Dec 

10210 

-2X8 

g 

100 

Denmaric 


7X00 

12/04 

92X500 

-1X70 

208 

«rw 

7X6 




Frmuq 

BTAN 

2000 

05/98 

104.1250 

-OXOO 

277 

267 

212 









OAT 

5X00 

04/04 

825500 

-1X80 

7.47 

7X8 

283 

■ ITALIAN GOVT. BONO (BTPJ FUTURES OPTIONS CUFFB Ure200m 100tf» Pf 100* 

Germany 


.2750 

05AM 

98X700 

—0X70 

7XO 

6X9 

6X8 

4H|g| m 








Italy 


8X00 

01/04 

907000 

-2.080 1O04t 

9X2 

9X7 

riNnKI 

Price 

Sap 

LX 

Dec 


Sap 

Pur® *■ 

Dec 

Japan 

N0 119 

4X00 

06/99 

1024620 

.-0X70 

3X2 

045 

3.18 




No 184 

4.100 

12/03 

99. 11 BO 

-0X80 

4X3 

4.19 

3X5 

10800 

2.10 

2X8 


1X5 


148 

Natharianda 


2750 

01AM 

908800 

-1X80 

7.12 

7X4 

258 

10860 

1X6 

2X5 


2X0 


338 

Spain 


10X00 

10/03 

102X500 

-1X00 

1008 

9X7 

9X1 

10700 

1.62 

2.15 


X47 


4X5 

UKQBs 


2000 

02/99 

90-24 

-25/32 

8X4 

7X9 

7X2 

EM. VOL nri Cate am Pun ML Pimtoua dar-a aeon kx, Cate ig0O7 Fata 19112 




2750 

11AM 

87-18 

-44/32 

258 

234 

8X3 










9X00 

IQ/08 

103-00 

-61/32 

263 

240 

215 








USTtauwy 

* 

7X50 

06/04 

101-08 

-17/32 

7X7 

290 

7X4 










6X50 

08/23 

86-27 

-19/32 

7X5 

7X1 

7X4 








ECU (ftaneft GovTJ 

8X00 

04AM 

87X100 

-1X40 

7X1 

7X0 

7X4 

Spain 








1 UP ID 5 yaare(Z4) 

121.86 

-036 

122.47 

207 

4,90 5 yn 

8X6 

200 

7.10 

249 

8X0 

7X2 

269 

243 

7X3 

2 5-15 yaara (22) 

138X3 

-1X8 

141.10 

1.94 

213 15 yr» 

154 

8X3 

7X4 

288 

247 

232 

298 

277 

257 

3 OreriXyenm 

15261 

-1.71 

15233 

249 

5X5 20 yn 

849 

130 

215 

AM 

247 

243 

281 

261 

263 

4 kwdamaUaan 

17SX2 

-2X9 

179X6 

1XO 

236 hred.7 

8X1 

242 

8X1 







5 M atocte (B1> 

137X4 

-1X5 

138X4 

209 

&XQ 
















— 

— Marion M— 

— 

— 

-MMM 10% - 

— * 



Max-Meed 


Jun IS Jin 10 Yr. 


An 13 Jun tO Yfc. 


0 Up to 9 ywsp) 
7 Over 5 yews (11) 
B Al stocks fl$ 


185X4 

173.40 

17X80 


-0.10 

-0-85 

-080 


188.02 1X0 

174,74 1X0 

175X3 1X0 


2X3 Up ro 5 yea 
2.12 Over 5 yn 
2.15 


a to 
3X2 


3.71 

3.77 


2X7 

3X8 


2X1 

3X4 


2.78 

3X0 


2X7 

a 38 


sywytairi IS 

Jun 13 Jun ID Ylr. ago Jun 13 


Y*wyWd -Mynnryta 

Jw 10 Yr. iqb Jin 13 Jun 10 


8 Dobs & Loam (7S) 


127X0 


-1XS 128.13 225 

. Coupon Oanac tor. Olt-TWi; 


6X7 8.79 891 8X7 8X8 

BH-tQHH; HtfX 11* MU ow rWlWlMYnpl 


8.48 8X1 0X2 8X2 8X7 


London daring. -Now Yam tod-toy 
f Qnoaa 8*Sumg trtWnMna Inc M 126 p 
mew in, UK In Unto. etw ki toctnri 

US INTEREST RATES 


YMdK Local marfcac stmlard. 

by nanraritontri 

Sauce MM9 InamHhmf 


■ NOTIONAL 8PAM8H BONO FUTUWE8fr4BT] 


UrncMme 


QmdhA_ 
71» Twn month — 
Urn nwflHi 


Tmaxy BBs and Bond Yfefch 

380 Trio year. 


Jun 

Sap 


Opm 

04X5 

93.75 


Sett price Clangs 
93X7 -1X8 

9292 -1X2 


Htfl 

8496 

93.75 


LOW 

83X0 

8290 


Eat voL Opm Ml 
00983 65X41 

65.108 79X44 


OHT EDGED ACTIVITY INDICES 

Jun® IQ Juns 9 Jurat 8 


Jun® 7 Jung 8 


a 


On yv. 


4.18 nmjw. 
4X4 Rw >e«r_ 
*J3 linear 

322 30-ynr 


an 

6.15 

657 

7J01 

798 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FBH4CH POND FUTURES (MATf) 


UK 

■ NOTIONAL UK 06.T WJIUBBa (UFF^- 250X00 32nda of 10036 

Opm Sett price Chang® Ngh Low Eat ml Opm bit 
Jut 102-20 101-15 -1-12 102-20 101-08 774 13298 

Sap 101-11 100-08 -1-13 101-15 98-28 88871 114336 

Doc 88-06 -1-13 0 87 

■ LOMO 02.T FUTURES 0PT10N8 {UffQ ESOXOO B4ttw of 100% 


FT FIXED INTEREST DUNCES 

Jun® 13 June 10 Jw 8 Jun® 8 Juns 7 YT ego Ugh* tow* 

Govt Sac*. [UK] 81X8 92X2 3278 92X2 92X2 95X7 107X4 81X4 GMt Edged bargains 927 115.0 88X SIX 828 

RMdUpNl 109X8 11027 11055 11023 110.78 111X7 133X7 108.12 S-day mnga 949 88X 87X 100.0 10OX 

* tar US*. Gpremraare Sacu rM aa W gl t Wt oa e um p M o u 137^0 yi/39, ton <8.18 pn/Kj. Fima taeoreor taga gln r a rqn pte rta i : 133J7 pl/VW) ■ tow SOM fWOt ■ Bite IQQi Ou mnu a K flacuW ag IVW 
ZB and Rood tacarm mb*. SC act My Mm iu Uu U li» 


FT/fSMA INTERNATIONAL BOND SERVICE 


Opm Sett pries Chang® Hgh 
Jim 116.14 117X8 -0.70 11820 

Sap 117.14 11594 -1.82 11720 

Doc 118X0 114X4 -1X2 116X0 

■ LONO TERM FWENCH BOND OPTIONS (MATTE) 


Lew 

Eat woL 

Opm InL 

SWIM 


■ CAUX 


* pure 

~ UL2 DOLLAR 8TMMHT3 



11748 

29X70 

22408 

Price 

Sap 

Dm 

Sap 

Dec 

Abtay Nanimy ft 03 _ 

— TOO 

aft 

116X4 

259X63 

110497 

100 

2-28 

2-29 

2-18 

3-47 

MmaHurincaTfefle 

- 1000 

TO 

114X0 

812 

10X09 

101 

1-61 

2-32 

2-49 

4-20 

AuftliBfeoa 

— 400 

TOfe 




in 

1-34 

2X8 

3-22 

4-60 

8s* d Tokyo ft 96 

— TO 

TO% 


touod BU Otar Cb* YMd 


92V 


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Pile* 

Jul 

~ CALLS — 
Sap 

Dec 

JU 

— PUTS 
Sap 

116 

1X8 

2.19 

- 

278 

1X9 

116 

0X1 

1X4 

1.74 

1X0 

2X0 

117 

048 

1.18 

- 

1X4 

2X8 

118 

0X2 

280 

- 

2X1 

. 

118 

210 

0X1 

- 

- 

- 


Eat. k (. tot. Caia 1883 Put* 1685 Awtoua day's apwi InL, Cals 47711 Pull 30237 


Dm 

2X5 


Eat vaL tout. Crita 30.830 Puta 40flU7 . Piariau* <tay^ op* InL, C* 200593 Puta 280588. 

Oarmany 

■ NOTIONAL GERMAN BWD PUTURE9 HJFFB* DM250,000 IQOfia of 100W 

Opm Saltprics Change High Low Eat ml Opm InL 
Sap 93.45 9225 -1.18 93X8 8218 150285 131698 

Dm 81.78 -120 0 734 


BRX7V97 — 
BHM021. 

cwKksas. 


Ecu 

■ ECU BOW RITURES (MATIF) 


Jun 


US 


Opm 

85X8 

84X0 


Sattpftee Change 
8522 -0.10 

8390 -1.12 


Mgh 

85X8 

84X0 


LOW 

88.10 

8398 


Eat wL Opm M. 
375 3,083 

1X23 5X05 


Chug Kong A fife M 900 

CUnfllfeOi ■ — - 1000 

CtundenpaaSB. 

CtaS Fonder Sfe 99. 

DrankSfeBB 


■ US THEA8UHY BCtaO FUTUBB8 (C8T) 9100X00 32«1daof 10096 


■ BUW3 FUTUBES OPTIONa (UFT^ DM2E0.Q00 poklta Of 100% 


Stiflaa 

Prim 

Jri 

AW 

CALLS — 

Sap 

Dao 

JU 

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PUTS 

S«P 

Dm 

0200 

0.72 

1X2 

1X0 

1.74 

0.47 

097 

1XS 

1X8 

0960 

248 

OX* 

1X3 

1X2 

an 

1.19 

148 

2X4 

8300 

0X8 

0.71 

1X0 

1X2 

1X3 

148 

1.78 

244 



Opm 

Laaaat 

Changa 

high 

Low 

Eat voL 

Opm InL 

Jun 

10646 

106-03 

-0-06 

106-10 

104-60 

20X33 

76X96 

Sap 

104-09 

104-04 

-0-08 

104-13 

103-91 

387X09 

296X97 

Dec 

106-21 

103-18 

-007 

103-23 

103-11 

589 

30X22 


Eaa Japan BOO 

BCSC8V9B 183 

BB38VB8 WQ 

98 TV 98 250 

EB9VW 1000 

BKdatoicaaOi. 

B*cama9V98. 


&-tai6a*JapaiBaz . 
BpartOwOarpBfeBB. 
RrtondaV 87 

FMftBpBrtBfegfi, 


Rri Motor CMS tfeSB 
GatSKCapMBfeM. 
OWCtfiOB 200 


1000 80fe B6fe 
.190 tOZV IKJfe 
1800 life life 
TOO TO4fe T0O| 
80V 81fe 
87fe Wfe 

.to TOfe itHfe 
.300 TOBfe 109V 
TOO 97fe 87fe 
9Zfe Sfli 

KSV HMV 

TOfe 104 
T02V TOV 
IWfe Wfe 
200 TOfe M7fe 
100 104V KSV 

an ira wav 

150 TOfe TO 
mo TO TOfe 
200 TOfe m% 


-fe 7X9 
-fe 7XB 
-fe 7.12 
-fe 6X0 
-fe 797 

-fe &sa 
-fe ass 


IMad Mngtoi 7fe S7 

VMamgai M F« 7 03 1000 97V 

Wtadd Baric 0 15 2000 22fe 


Eat -ml ML OMs «nao pu» two. ih sMoji +tfm upon wtt. Cola iTSTO Pi*s itmis 


■ NOTIONAL uqhq TERM JAPANESE OCNT. BOND FUTU«a 

UFFQ YfOOm lOOtfu oT 100% 


■ NOTIONAL MEDIUM TERM GERMAN QOVT. BOND 
(SOBLKLBTE)* DM250,000 lOOfta of 10094 

Opm. daaa Chang® Hfeh Low Eat vri 

Opm btt. 

Opm Satt price Changa hBgh Law 

Sap 97X0 -0.73 

Eat voJ Open bit * um con m Mad on APT. M Opm ktomz fiw n tor pnwlaui day. 

0 76 


I UK GILTS PRICES 1 

_YV*I._ _ I994_ 

NBM W Md M c®fi+w- T v Ian 

— nud— —UK** __iud_ 

Hotot M IM Mat +or- Hdi law Haba m CO Meat +or- 

-1994- 
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TOV TOfe 
TOfe TOfe 
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83fe 84fe 

TOfe TOV 
-380 TOfe TOfe 
.1350 SBV B7fe 
-aoo TOfe nefe 

IMaaMaBKTfeaZ 1000 SB 9Bfe 

Nppon Old BUOfe B5 150 TOfe TOfe 

toamyTVST 1000 lOlfe WB 

OriatoTfeOS .3000 98 86fe 


tadBkJKMlFin 7fe 97 — 200 

feawNwDMTfeM ■ 2CD 

«<*efe23__ 3503 

Xpwi Dev 9cBfe 01 

Kaari B(b Ftar 10 98 _ 
KonaBooPOmrSfeOa. 
LTCBHblSW, 


OmrKDOMIariiSfeOT 
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Dm 10p£ In. HUD 

Esaiafepeiiw 12X3 

T)W 9pC 19840 8X8 

12p0 198S 11X2 

tahapcUBIMS 3X8 

10VPC199S 278 

TtaaUVpc 19858 11J2 

14a 1880 12X8 

ISfeoei**** uxa 

EaflraVpCTOBtt — 11X0 
CnpwntanlOpcIWB— 245 

Cow 7pc 1997# 7X8 

1taHl3Vpt1897# — 11X8 

BED lOfeSC 1897 2X2 

Ttan8VpO<997^ 8X3 

CBS 13* 1387 12X7 

0V0C1888 128 

trial 7Vpc18B3& 7X4 

trial OVpcIBBBTO^t- 7X8 

14BB-88-1 11X0 

trinlfifepoVSti 1232 

Etch lihe 1908 10X1 

DM OfepcIBK# 110 


PhatoinriBlrin 

EKfeisviKiaaa 10.70 

IriatlOfepCtSH 272 

Tun ape IB* tt an 

Gmnkn IDVpo 1999- 298 
tridFagRariW 

teeaoatt-- ax2 

trial Opt WOO. 10X8 

10989001 243 

taw# 7X6 

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BVM20U 027 

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100 irimifepeaioi-4. 

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101V OaiMtoa9fepa20D4 9X6 

wfe TiwaVpeanq# 7 jz 

.Si Con* 9 fe pc 2008 2X4 

trio* 12fepc 2003-8 10X4 

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11«2 TrmiiVw3»-7 — iftio 

1riM8fepc2007tt 8X0 

m WwbW-8— 1098 

IlSS trill 2098 49 8J4 

10U 

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it 


8X3 107V 
8X9 T12M 
7X8 72Ari 
BJ8 104fe 
8X7 87U 

274 1H£ 
213 120fe 
28B 98fe 
274 MU 
213 115ft 
8X4 9BHJd 
113 12m 
8X2 108 


-Ife 127ft 
HA 12U! 

-1SS «Bft 

123ft 
-IB IKfe 
-Ifl ISSfe 
-IV 143ft 
-1« 11ZB 

-m mV 
-1ft 138ft 
H» 112ft 
-18 181ft 
^fe 124(1 


106*1 

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08 

103fi 

119ft 

life 

93ft 

113% 

« 

1258 

101 


ten. 




SS ?£=$% 


in 

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244 

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Hi 110ft 


OmrNtMilrin 



IritoApcTOS 

844 

281 

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USA 

TtoMfl 1/too 2010 

7J7 

247 


-Iti 

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871 

1ST 

103% 

“1« 

12ft 

Trial Bpczm2ti 

170 

in 

10ft 

-iH 

127% 

Ite/Sfegc2a»-I2tf- 

7X4 

iaa 

»ll 

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93% 

TriwBpaZOlStt 

848 

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94fl 

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lift 

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298 

282 

102fl 

-1% 

128V 

am «pc 13^17— . 

824 

270 

12BU 

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TOfe 


3X4 TOBfe 
298 107ft 
170 1B9S 

272 182 

273 109ft 
1711880* 

279 18EV 
3X8 1S7V 
2tt WA 

288 204 137fe 
172 3X8 132 

172 &MTO4N 

... . 174 187 198ft 

PRNpacOw rari radmiptai nta on pntaeM MflMlan«t{1) 10K 
and CZ Mi. 94 Hguraa In pa ailia iw mew RPI twaa tor 
bvtedng Oa 8 montta prior to baud and haw barn adUriad » 
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2X42 W1 Hr September 1903: 141X md ftr Apr1 1004; 1443. 

78ft Othernndimemt 

101ft 

101ft YM* ingi 

Xm lot riri j lw 



2fepo70. 


200 TOfe TOfe 
200 Wife TOfe 
87fe 80 
UO TOfe TO 
200 TOfe TOfe 
TO TO TOfe 
200 ItW lOBfe 
TO TOfe TOfe 
TOO 97V SB 


Irian BKfmarfl 


.700 

IrigoBacPmarOfea TOO 

TdqoMafenprihXfete 200 

-toptaMdUSfeW TOO 

UriridM«dtan7fe02. 

tlbld Bsrifife 00 

WriUBnlcAV 87 1800 


3000 

IBS 



104ft risUsiJfepc# 

90ft Cowsfepc-Blrit 

80ft Tran 3pc Writ 

wafi Panto 2fepn 

24ft Trin.Zfepc 


273 

- 4ft 

-14 

8ft 

282 

- 4U 

-fl 

S4H 

808 

- 87% 

-fe 

71 

17B 

- 34fl 

-0 

4ft 

282 

- a 

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38*1 

887 

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37% 


lift WriPCwllfeSDIO— 

ns tomowiofewmn— 

127V Brin nfepe 2012— 
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1 apt ip-3 ■ — 
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44U LCCSpp ■»«-—— 
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B8V KRW23HV 

34ft Nina jnpisftpe son. 
28% 4fepeL2024. 

HitolS 


27U UUi 


nBfepcara 


an 

8M 

117% 

828 

294 

lift 

980 

ICO 

lift 

893 

290 


loft 

1182 

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110 

1282 

201 

141V 

1004 

901 


3 

8.10 

— 

22% 

1218 

878 

112% 

491 

229 

490 

A 

— 

493 

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1187 

- 

TO 


1424 117% 

-4fe itefe 11m 

-Ife M2 117% 
-fe IIBfe 17V 

100*3 100V 

-V 115V 109V 
-2fe 188ft 141V 

-2*1 140V 12Bfe 
A 44V 33V 
— 40fe 
H2V TOV 
-fe 78 88% 

-iv 19DV mV 
-1 140V 128V 
-2 TBOfe 132 


DSJ12CW MMK STRMGHie 

Aw»ii«fe»__™ 2000 

Cndt Fonder 7V 03 2000 

DnnskOfeOS 2000 

Dapri HancaBfe03 . 
DatohaWFinTfeOS . 

BBJflfeOO 

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.1600 


.2000 

.2900 


.3000 


,6000 


112 


UQBTOHMwttBfeOB, 
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8prii7fe03 4000 

ftMrf-aw am 

mwHriONDiiirii 
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89fe 99V 

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BBfe 98V 
98V 88 

TOfe 106V 
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84V 84fe 

2A BBfe 
99fe 96V 
94fe 04fe 
TOfe W1V 
90 89 

TOV 10ft 
TO TO 
BOV BOV 
99V BBfe 

9®S 9Bfe 
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118 

as 

857 

238 
7X7 
8X4 

732 
853 
236 
828 
274 
296 
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288 
209 
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6X3 
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228 
881 
284 

733 
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239 
735 
7X6 
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288 
7X4 
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248 
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WWdBatoOVoo 


SMBS HUNC SlHHQHtS 


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FMnd7V99 


Hjuntol Motor FriSfe 87 TO 

wteiriftm 


KdMRfem 


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3CF704 




WuUHa*7m 


YEN STRAIGHTS 
MtaSB 


RSfi^nn 


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War Anar De» 7% 00 30000 



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894 

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FINANCIAL TIMES TUESDAY JUNE 14 1994 


\ 


u ! x 5Si ‘ s on s[ 0t : 
practice 




Christian Salvesen dip 
in line with warning 


By DavU Wlghton 

In line with a profits warning 
issued in January, Christian 
Salvesen, the distribution 
specialist hire group, reported 
its first downturn in arnumll 
profits since the 1970s with a 
pre-tax fall from £75.9m to 
£74Jm for the year to March 
31. 

The shares, which have 
underperformed the marfo»t fry 
almost 20 per rant rtiit; year, 
added 8p to dose at 255p. 

Thanks to a lower tax charge 
earnings pa* share were steady 

at 19.2p Q9. Ip) and a recom- 
mended final of 43p gives a 
total dividend up 4 per cent to 
8.1p. 

Sir Alick Rankin, ohaiwnap 
said this reflected the board's 
confidence in the future. 

“We expect a better year, but 
are, not surprisingly, treating 
it with caution,'’ he said. 

Analysts are looking for prof- 
its to rise to about £S0m with 
earnings per share rising to 
about 20p. 

The company said it had 
tackled the problems at 
Aggreko, the specialist plant 
hire business which has been 
the engine of growth in recent 
years. 

Aggreko has reversed an 
expansion into the competitive 
US construction market and 
the workforce in the US has 
been cut by 10 per cent 

With Aggreko 'a European 
operations also affected by 
recession, its operating 
profits slipped from £2ft-2m to 
£26£m. 

The distribution side turned 
in flat profits of £35. 6m 
(£35.2m), excluding a £4 .2m 
contribution from ar» qiriiritinng 

Food distribution, which 
services most of the main UK 
supermarket chains, was 

sli ghtly ahead 





lyda van dor Moor 


Chris Masters: growth coming largely from industrial businesses 


Profits from the consumer 
products contract with Marks 
and Spencer were down since 
its fees were based on a for- 
mula Hnfcwi to UK short-term 
interest rates. This has now 
been renegotiated. 

Mr Chris Masters, ch ie f exec- 
utive, said grocery distribution 
in the UK was now a mature 
market and the division’s 
growth was seen coming 


DIVIDENDS ANNOUNCED 


Curent Date of ponding for last 

payment payment dMdend year year 

Banner Homes fin 1 Sept 8 1 

Cropper {James) frn 2.4 Aug 16 2.125 &5 3.1 

Cullen's fin nfl - Oi id US 

Orffiame tntf fin &7f Sept 28 8 13 12 

Prospect bids kit 029 Aug 22 0275 - Oh 

Salvesen (C) fin 4.8 Aug 8 4.6 &1 7.8 

Umeco § fin iJBSt Aug IS 1 i 1.75 

Unklara K 4.5* July 30 4.4 - 10.1 J 

Dividends shown pence per share net except where otherwise stated. 
f&oss. {On Increased capital. §USM stock. *lrish pence. |F or line months. 


COMPANY NEWS: UK 


largely from its industrial busi- 
ness. This was significantly 
expanded by the acquisition of 
Swift for £84.5iii in October 
1993. 

The deal pushed group 
gearing from 14 per cart to 51 
per cent over the year, but it 
should be down below 45 per 
cent by the end of this 

year- 

profits from the brick busi- 
ness rose by 76 per cent to 
£3m. Vikoma, the pollution 
control equipment manufac- 
turer which is up for sale, 
tn mpri in £L5m. 

Profits included a net £6.6m 
from the release of provisions, 
taken below the line in 1992, to 
cover the closure of its German 
manufacturer distribution 
business. This was offset by 
write-offs elsewhere to leave a 
net exceptional gain of just 
£ 100 , 000 . 

See Lex 


Infla tables 
side sold 
by Avon 
Rubber 
for £7.8m 

By Posfflr Hofflngor 

Avon Rubber is selling Its 
losrnnahlng inflatable boats 
business for a total of £7 An to 
a former director of GEC. 

This is almost the last of the 
troublesome businesses to be 
dealt with in the restructuring 
which has carried the tyres 
and automotive components 
group through four years of 
recession. 

It Is estimated to have 
incurred pre-tax losses of 
£2Jhn over the last three years 
and is expected to incur a loss 
of about £700,000 for the nine 
months it will have been 
included this year. Avon has 
had to provide a secured guar- 
antee to the new company’s 
banking facilities of up to tftm 
until September 1995. 

Avon Marine, a company set 
up by Mr David Powell, a for- 
ma GEC director, is buying 
the business. Avon Rubber is 
a 10 per cent stake 
worth £420,000 as part of the 
purchase price, as well as a 
cash payment of £2.9m, and 
will have a seat an the board. 

Marine will also take on 
£8. 7m in debt, and pay a fur- 
ther £780,000 to Avon Rubber 
following the sale of certain 
stocks. 

ONVen, the venture capital 
Himp m y , is tioffMiig the trans- 
action and will also have a ; 
seat on the board. 

The division's net assets are 
estimated at £4. 6m, resulting 
in a goodwill write-off of 
£3.1m. Avon Rubber’s gearing 
is expected to foil from 33 per 
cent to 28 per cent as a result 
of the transaction. 

Stapleton joins 
FT-SE-A committee 

Mr Nigel Stapleton, chairman 
of The Hundred Group of UK 
finance directors and chief 
ftimwriai officer of Reed Elsev- 
ier, has been appointed as a 
member of the FT-SE-Actu- 
aries Share Indices Steering 
Committee. He is the first rep- 
resentative of a listed com- 
pany to serve on the commit- 
tee. 


A move to regain the initiative 

Paul Taylor on the attractions of the Viglen purchase for Amstrad 

A mstrad’s proposed Sugar proposed buying back Philips executive who was pany was “not just a box 
acquisition of Viglen, the Amstrad stores to did not appointed Amstrad's chief shifter", 
the PC manufacturer already own for SOd each, he executive earlier this month. He said Vision had dei 


A astrad's proposed 
acquisition of Viglen, 
the PC manufacturer 
which sells its TnaeMwaa direct 
to its customers, represents a 
significant shift in the UK con- 
sumer electronic group's strat- 
egy. 

Mr Alan Sugar, Amstrad's 
founder and chairman, 
acknowledged this yesterday 
when he said the deal repre- 
sented the start of "a new 
direction for the company". 

“We are looking to be in 
b usin esses where the products 
we are producing will be sold 
directly to the parties that use 
them,” Mr Sugar said. 

The Amstrad ^haiir pa n , who 
has been a bitter critic in the 
past of the purchasing pp jfg fes 
followed by the high street 
multi ples if ha Dixons, said the 
move represented the natural 
outcome of the erosion of mar- 
gins in the traditional distribu- 
tion rharmnlg 

Amstrad ha s sw n the mar- 
gins on nearly all of its tradi- 
tional product Hnflg ftWwting 
personal computers, evaporate 
as competitors rushed intn con- 
sumer electronics markets pio- 
neered by the company. 

Two years ago, when Mr 


Sugar proposed buying back 
the Amstrad stores he did not 
already own for SOp each, he 
claimed he was making the 
proposal because Amstrad had 
run out of ideas and become 
just another "me-too” company 
lacking “blockbuster products" 
and destined to deliver only 
mediocre profits. 

However, Amstrad's share- 
holders turned down his buy- 
back proposal and Mr Sugar 
said yesterday that the group’s 
new direct sales strategy was 
an attempt to steer Amstrad 
back towards “large profits”. 

By selling directly to custom- 
ers Amstrad believes it will be 
able to recapture the margin 
flmt hug traditionally to 
retailers. 


M r Sugar said yester- 
day that a similar 
direct sales approach 
would be taken by Dan call 
Radio, the Danish-based 
advanced digital telecommuni- 
cations equipment group 
which Amstrad acquired last 
September. 

The Amstrad chairman 
added that the new distribu- 
tion policy had the ftui support 
of Mr David Rogers, the senior 


Philips executive who was 
appointed Amstrad’s chief 
executive earlier this month. 

Mr Rogers’ job at Amstrad 
will be to oversee a rapidly 
growing group of operating 
companies including Viglen, 
DancaH and Betacom, the con- 
sumer telecommunications 
equipment manufacturer 
which is majority owned by 
Amstrad but which also 
retains a separate quote. 

He will also be in charge of 
Amstrad's traditional con- 
sumer electronics business 
which, among other products, 
also makes a range of Amstrad 
personal c omp uters. 

Most analysts have been 
expecting Amstrad to abandon 
the PC business altogether 
because of its wafer-thin mar- 
gins and the fast pace of tech- 
nical innovation which means 
that manufacturers always 
risk sitting on stock with a 
declining value. 

However, Mr Sugar empha- 
sised that it had never been 
Amstrad's intention to aban- 
don the PC business alto- 
gether. only the low-margin 
retail end of the business. 

Explaining the decision to 
buy Viglen he said the com- 


pany was not just a box 
shifter”. 

He said Viglen tod devel- 
oped an increasingly profitable 
business delivering "made to 
measure” PCs mainly to corpo- 
rate, government and institu- 
tional customers which distin- 
guished it from other so-called 
PC “clone” assemblers. 


O ver the past few years 
the UK PC market has 
become increasingly 
competitive as clone manufac- 
turers - many of which also 
sell directly through computer 
magazines - have cut prices in 
an effort to boost volumes. 

However, Viglen, along with 
a handful of other UK-based 
PC Trumiiftw. t ilinix and assem- 
blers like north London-based 
Eloneac, have managed to dif- 
ferentiate their products and 
customer service and establish 
themselves as second-tier PC 
suppliers behind Industry lead- 
ers such as IBM and Compaq 
Computer. 

Mr Sugar emphasised that 
Viglen would continue to be 
run by the mainly Ar menian 
team of young entrepreneurs 
who have built the business up 
over the past five years. 


Few non-professional investors can 
understand new accounts guidance 


By Andrew Jack 

Few non-professional investors 
can understand the operating 
and fbumcial review, the new 
guidance on commentary in 
accounts which is ikwrigwpd to 
explain a company's perfor- 
mance in words, a survey 
suggested yesterday. 

Analysts and investors 
believe non-professional read- 
ers of accounts will not bother 
to read nor be able to use the 
information in the review, 
research sponsored by the 
T-nuHtntA of Chartered Accoun- 
tants of Scotland said. 

Professionals, however, 
found them very usefoL 

The review was introduced 
by the Accounting Standards 
Board last year as a 
voluntary code, and its 
guidelines are now being fol- 
lowed by a growing number of 


companies. 

The aim is to allow directors 
to describe their company's 
performance in a way that 
they feel most appropriate, out- 
side the restrictions of formal 
accounting standards. 

The survey, conducted by 
Professor Pauline Weetman, 
director of research for the 
Institute, calia for the review 
to be ™ute into a mandatory 
standard as quickly as possi- 
ble. 

It says tire review should 
have statutory backing 
through changes to Stock 
Exchange rules or mare rigor- 
ous audit guidelines. 

Based on detailed i n tervie w s 
with 20 institutional investors 
and senior staff with broking 
firms, it rejects the argument 
by wunpiimiMs that much new 
information cannot be dis- 
closed because it is commer- 


cially sensitive. 

It says companies should see 
the review as a way to demon- 
strate their openness and 
accountability by reporting sig- 
nificant tnu*arh>hiKag and pro- 
viding forward-looking infor- 
mation. 

It also recommends that 
ways should be found to 


reduce the time lag between a 
company's results and the pro- 
duction of the annual report 
months later. 

The operating and financial 
review: views of analysts and 
institutional investors. Institute 
of Chartered Accountants of 
Scotland. 27 Queen St, Edin- 
burgh EH2 1LA. £ 12.50 


Cheltenham & Gloucester faces 
legal action from former partner 


rjTmrm Assurance, an affehoot 
of Lincoln National, the US life 
assurance group, is taking 
legal action against the Chel- 
tenham & Gloucester Building 
Society claiming it has not 
been paid fees for introducing 
mortgage customers. 

The dispute follows the ter- 
mination of a joint-venture 


between the two companies in 
October 1992. For a period of 
about 18 months Cannon sold 
mortgage packages, produced 
by C&G Guardian, a central- 
ised mortgage lender taken 
over by C&G in 1990. 

Cannon claims no fees have 
been paid since January 1993. 
A writ was issued last week. 


4 ■ ' ' 1 •-< ’ 


AG 1090 r 

a public .fi i ' 

Boulevard Emile jicqfc&ti S&fclOoO Brussels V r 

Brussels 531.552 W: 

: :y‘r : : • -ty ' 





™» «dvcni«m<3n b ted la o om pHa nre *kb the Rcftilulaaa of The Imrmatkmal Stock K s cl u n fr: « the Coked Kingdom and RcpuNIc 
of Maud Urnkad. k doa not ommImm an Invitation u> any postal In fltaribc lor or pmrfaave any dure*. Application has been mode 
u> The lnurnaUoaoi Smok to hoafn of the Dobed Khapkxn and KcpuhBo of Ireland Ltaatcd Car dw jdatoskm lo die Official U« of the 
wbofe of die Onknatr ska/c capful of Onttra fata rnctom l Limited wkfc* will he In Same and fafly paid hQmrrJLxctv foti*rtng ifu- Placing 
It la expected thu tai daafcjn to the Officio! Lkl *UJ bec om e dfeoctvr and dot wUJ commence tin 2S June 1941 


INTERSHARE 

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SoC * w 47 Boutevani Royal, L-2448 Luxembourg 
RC Luxembourg B 37.026 

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Puisquo la quorum du mal W94. tos acUonnalres da 

A^6MSLEEG0IERJLE H™™, A ^ heufgs rectal. 47. 

2 demeunmr h Luxembourg, 

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Pour KtmrrsT au mcrim 2 iouts francs avani rassemblde, auprOs 

*1 “ ^ aa, oTDGuraSen- Les procurations dbment 

SuioSTwSai^ ttf£*oS«4 au irwlra 2 jotua tiancs &vaffi la 

wu M TaasBnttoa. 

LtCensMd-AdnMBKOon 


All Advertisement 
bookings are accepted 
subject to our current 
Terms and Conditions, 
copies of which are 
available by writing to 

The Advertisement 
Production Director 
The financial Times, 
One Southwark Bridge 
London SE1 9HL 
Tel: 071 873 3223 
Fax: 071 8733064 


B GEN-EUROBANK 

The Qrdnaiy General Meeting of BCS4-EUROBANK, convened by 
the Board of Directors, was held on April 17, 1994, under the 
chairmanship of Mr. Bernard DUPUY, Chairman of the Supervisory 
Council, and in the presence of Mr. Vktor GUERASCHENKO, Chairman 
of the Centra! Bank of Russia. The General Meeting approved the 
management report from the Board of Directors as wel as the company 
accounts and the consolidated accounts of the Bank for 1983. 

BCEN-EUROBANK continues to be active in French export financing, 
in managing or taking stakes In various operations guaranteed by 
Coface or by leading banks of the countries Involved 

Amongst the new products which have been marketed by the Bank, of 
note Is the creation of a imit trust and of three investment kinds In Paris 
which have been added to the funds management services offered by 
OUT SUtjSkflaiy F1MAGO (FINANCIAL MANAGEMENT COMPANY). The 
Bank has become one of the regular participants on the secondary 
markeft of sovereign debts. 

Commercial Bank EVROFINANCE bi Moscow. 70% of whose capita] 
is controlled by BCEN-RJROBANK, has seen a development of Its 
activities. EVROFINANCE has made a significant contribution to the 
development of our operations through offering our customer base an 
additional range of products that BCEN-EUROBANK could not offer 
dfreetty, aid also through offering a local presence In the field of financial 
engineering. 

From the financial point of view, the Bank's sfiuation remains strong. 
The consolidated balance at 31.12.93 Is FF14.155 billion francs 
compared to FF13.246 bflfion at 31.12£Z. The results show a Slight 
positive gain. 

fn 1993, transfer to reserves (fndudfog interests) amounted to FF 588 
million (bringing the total amount to FF4.6 billion) to meet the 
Gommfsslon Bancafie requirements. 

The credit ratio was approximately 36.9% compared to a legal 
mWmum of 8% through the maintanance at a high level of the femprunt 
parfidpatif, and the capital increase at the end of 1993 ty 115 mBton 
francs bringing the company capita) up to 1,216.8 m*ton francs. The 
assets are prindpdty composed of loans parted to banks of OECD 
countries and secured or provisional tows. 

Two eotrtrias of the Russian petroleum industry, ROSNEFT, Moscow 
andYUCOSSA. Nsfteyugansk (Tyumen region) have taken a minority 
holcing In the opted of BCB^UROBANK. The Genoa) Assembly has 
appoHed these two c o mp anies members of the Supervisory Bound of 
the Bank. 

BCEN-EUROBANK 

79 <81 bwJevard Hausamann, 75008 PARIS 



THE TOP OPPORTUNITIES SECTION 

For senior management positions. 
For information please contact: 

Philip Wrigley 
0718733351 



Atuhoriscd 
AS4 99.000.000 


AS 1,000.000 


Cortecs International Limited 

/tmeorponoed and n»fa«e-od ta -ACS 009 J2S S»J 

PLACING 

of 34,090,930 Ordinary shares of ASO.SO each at 44 pence per share 

SpaBii»Mlh]r 

WEST MERCHANT BANK LIMITED 

AND 

henry Cooke Corporate finance ltd 

L’ndennitten by 

WEST MERCHANT BANK LIMITED 

Share copies] following the Placing 


Ordinary shares of ASO.SO each 

- folh paid 

- partly pood as to AS0.01 each 

Convertible cumulative floating rate 
preference shares of AffO.50 each 
-fully paid 


Ati55.226.778 

Ati8,177 


AS 1.000,000 


Copies of the Listing Particulars relating to the Company may be obtained during norma! buslnest. hours on any 
weekday (Saturdays exoexued) up to and including 16 June 1994 from the Company Announcements Office. 
London Stock Tower, Cape! Court Entrance, Off Bartholomew Lane. Loudon EC2N l HP (by collection 

only) and up to and including 28 June 1994 from the Company's UK headquarters. The Old Blue School, Lower 
Square, bfcworth, Middlesex TW7 bRL, and btm: 

West Merchant Bank Limited Henry Cooke Corporate Finance Ltd 

33-36 Gracednirch Street One King Street 

London Manchester 

14 June 19<L| 


FINANCIAL TIMES 
NEWSLETTERS 


A new newsletter from the Financial Times 


AUTOMOTIVE 

COMPONENTS 

ANALYST 


FT Newsletters will be launching a new newsletter in 1994, designed 10 
contain only the sharpest news and statistics about the automotive 
components industry. It will probe beneath the surface of the industry and 
supply its subscribers with the practical intelligence they need to keep q 

pace with the changing face 

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manufacture worldwide. i nmut hk-m ( on 8733ns, 


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FT H » n n ,lMi|»IM iU m|n»< MM HMton «;h^iiialWB ImU I VHL RrrrJonl n, Er^ijU V.’ °«V*> 









■■r-SU 


FINANCIAL TIMES TUESDAY JUNE 14 IW 


Old Mutual to 
launch first UK 
S African trust 


By Betfian Hutton 


Old Mutual, the life company 
which is South Africa's largest 
institutional investor, is to 
launch the UK's first South 
African investment trust 

The Old Mutual South Africa 
Trust is hoping to raise about 
£50m to invest in a range of 
South African companies, with 
a bias towards smaller and 
medium-sized companies and 
the financial and industrial 
sectors. The fend win be man- 
aged with a bottom-up, stock- 
picking style. 

The fund's managers say 
that South Africa combines 
much of the growth potential 
of an emerging market with 
the developed infrastructure of 
an advanced industrialised 
economy and a stock market 
more than 100 years old. The 
ending of sanctions and 
improved political stability 
provide encouraging opportu- 
nities for growth. 

The fund’s bias towards 
smaller companies is intended 
to avoid duplicating invest- 
ment in areas which are easily 


Lloyds Chemists in 
£10.5m expansion 


By Caroline Southey 


Lloyds Chemists, the UK’s 
second largest pharmaceuticals 
retailer, yesterday armnancad 
it was to boy Dentaie, a phar- 
maceutical wholesaling and 
manufacturing business, for 
810.5m. 

Mr Peter Lloyd, chief execu- 
tive, said the acquisition would 
increase the company's 
national wholesaling business 
and ffltpand its customer base. 
He said the deal was also an 
opportunity to build pharma- 
ceutical manufacturing inter- 
ests. 

Daniels, made up of Daniels 
Pharmaceutical, Shapebase 
and H Wilkinson, operates a 
wholesaling business In the 


Cullen’s swings into 
deficit of £674,000 


Cullen’s Holdings, the grocery 
retailer, suffered pre-tax losses 
of £674,000 for the year to Feb- 
ruary 27 compared with profits 
of £40L00Q. 

The losses were mainly asso- 
ciated with the operations of 
the Reds Chicken and Ribs 
division, Mr Robert Rayne, 
chairman, said, while the 
Neighbourhood Food Stores 
and Patisserie divisions had 
performed satisfactorily. 


Total turnover improved to 
£29.7m (£27 .4m) with some 
£2&4m (£23m) craning from the 
Cullen’s estate. 

Mr Rayne added that in the 
current year sales of the Neigh- 
bourhood Food Stores were 6.6 
per cent up on a Hke-for-like 
basis and profits were in line 
with budget 

Losses per share amounted 
to 2.8p (G.8p earnings) and 
there is no dividend (0.5p). 


Neural Networks in 
Financial Markets: 
A Preview 
of the Future 


Forecasting with Neural Networks 

■ 28 November- 1 December 1994 


Many le nd i ng in s titut ions are looking very dosdy at the potential 
ofnairalnttworks in finmw-fa I rreririf* And if jr^Tnwrdwrriny 
can help achieve ouiperfo r mance, the subject is too important 
to ignore. 

To make sure chat you and your organisation are leaden 
in the field and not followers, London Business School has 
developed a new four-day programme. Forecasting with Neural 
Networks, to give you an authoritative, practical and accessible 
briefing on the subject. 

It will help yon understand three central issues: 

• basic principles: the capability of computers to nwvlcl 
complex, non-linear relationships between markets and the 
factors which affect them, and to “learn from experience” 
so that they can forecast with increasing accuracy; 

• strengths and weaknesses; the effectiveness of neural net- 
works compared to con vend o aal statistical and econometric 

techniques, and the advantages ami disadvantages of each; 

• and neural networks in practice, with emphasis on their 
role as decision-support tools in quantitative investment 
management across the full range of financial markets. 

The programme combines workshops, seminars, case histories 
and “hands-on” experience in the PC laboratory. It is relevant 
to any financial professorial closely involved with - or dependent 
On - market analysis and decision support tools. Experience 
in computing and mathematics is not necessary 

If you want ter evaluate the claims that this important, 
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teal competitive advantage, you should certainly attend. 


For further infotmarioa plage contact jttqui Buckley, Excc ub tc Education, 
(NN9401), London Business School, Sussex Place, Regent’s Park, London 
NWI 4SA. Telephone; *M (0) 71 262 5050. Ewe +44 (0) 71 724 <051. 


ORGANISATION: 



COMPANY NEWS: UK 


St Modwen 
property 
sales to 
raise £37m 


The most beautiful factory in all the land 

rv 1 


Andrew Baxter on British Steel’s biggest Turkish project since the Bosphorus Bridge 


A bout 100 miles east of 
Istanbul is a group of 
new buildings which 

Mr William Boyd think* ia the 
most beautiful factory in Tur- 
key. 

“I hope lots of Turkish indus- 
trialists drive past and say, 1 
want one like that,’" he says. 

Mr Boyd is general manager 
for central and eastern Europe 
at British Steel, which has just 
completed producing £3m of 
structural steel and cladding 
for the factory at Adapazari. 

From September it is dim to 
be producing Toyota Corollas 
in a £325m joint venture, called 
Toyotasa, between Turkey's 
Saband group, Toyota itself 
and Mitsui, the Japanese trad- 
ing house. 

The contract is very impor- 
tant for steed’s business 
strategy in Turkey. 

The Toyotasa plant is highly 
visible, not only as a striking 
building in a mainly agricul- 
tural region but also as the 
first Japanese passenger car 
plant in Turkey. 

Mr Boyd hopes ft will begin a 
trend for steel to be used in 
industrial and other buildings 
instead of the traditional con- 
crete. 

But there is awithre- reason 
why Mr Boyd - who took over 
at the Istanbul nffico eight 
months ago - is happy. 

British Steed is also supply- 
ing Toyotasa with at least 45 
per cent of the steel for the 
Corollas' body panels, export- 
ing up to 4^00 tonnes of blanks 
a year from the UK. 

That lifts the total value of 
British Steel's involvement 
with Toyotasa to £10m, making 
it the steelmaker's biggest proj- 
ect In Turkey since the Bos- 
phorus Bridge in 1973. 

To show how significant 
British Steel believes the deals 

era, Mr Brian Moffat, chairman 

and chief executive, was 
personally responsible for 


accessible to foreign institu- 
tional investors, focusing 
instead on areas of the market 
for which research is not 
widely available overseas. 

South Africa is due to be 
included in the IFC e m e rg i ng 
markets index, where it will 
have a w trfgftHng of about 13 
per cent This is expected to 
lead to heavy inflows of over- 
seas money into South Africa, 
and the Old Mutual trust hopes 
to appeal to institutions 
looking for a quick way to 
Increase South African expo- 
sure in line wife, the index. 

The fund is mainly targeted 
at institutional investors, but 
there will also be a public offer 
to allow private investors a 
chance to participate. 

Lord Tombs, former chair- 
man of Rolls-Royce, will chair 
the trust, with other board 
members drawn from Old 
Mrrtnai and the UK investment 
trust sector. 

Shares win be issued at lOOp 
with one warrant attached to 
every five shares. The public 
offer opens on June 23, and 
doses on July L 


By Simon Davies 


north-west of England, the east 
Midlands, East Anglia and the 
northern home counties. 

It also owns a manufacturing 
business in Derby and a surgi- 
cal wholesale business in Not- 
tingham. Operating profile 
were £L^5m in the year to 
June 30 1993 wife, net assets at 
the date of £913,000. 

Lloyds has expanded its geo- 
graphical spread during the 
last 12 months, acquiring 25 
pharmacies throughout fee UK 
bringing the number of its 
retail outlets to 1£10. 

In March Lloyds reported a 
16 per cent increase in interim 
pre-tax profits to £26JZm 
(£22£m) for the six months to 
December on sales up 17 per 
cent to £460m. 


St Modwen Properties, the 
Bir min g ham -based prop e rly 
development and ia vestment 
company, is to seD:£37^m of 
properties, which should bring 
in total net profits of close 
to£8m. 

It has sold the Octagon 
Shopping Centre in 
Burton-on-Trent to Scottish 
Amicable for £2&9m, 
representing a yield of dose 
to 7 per cent hi addition, tt 
has disposed of a retail 
development project to 
Mercury Propert y Fund for 
£14.4m. 

Mr Stan Clarke, chairman, 
said: T believe feat fee 
pr op er t y market in many 
areas has reached a peak in 
prices”. 

St Modwen’s share price 
reacted favourably to fee 
sales, rising 3d to 49d. 

The disposals were in line 
with the company's str at egy 
of focusing on second grade 
properties where It can 
atiham'B ilm r wifal Ihmiiw 

through intensive 
management 

The proceeds will reduce 
gearing to 50 per cent, 
altooogh acquisitions are 
likely to follow. 

The sale of Octagon will 
realise a £3m net profit, after 
writing off £700,000 for the 
winding down of areioted 
interest rate swap. It will 
repay £llm of connected debt 

Tbe sale of fee OMbnry 

ij^lnp mawt bHp In fee 

West Midlands was expected, 
after the company signed op 
tenants for tbe 12.5 acre site, 
wife Salnsbmy’s Homebase 
as its anchor. The net profits 
are believed to be close to 
£5m. 


the inaugural tree planting 
ceremony. 

British Steel’s trading com- 
pany in Turkey, British Steel 
Celik TTcaret. was set up In 
1987, with the UK company 

holding a SO pgr pent stake and 

Turkish interests, including 
the family company Ege Metal, 
holding the zest 

“Because of Turkey's loca- 
tion it is a natural {dace for 
countries from the Ukraine to 
Italy to sell steel, and very 
competitive," says Mr Boyd. 
So, unwilling to compete with 
the prices offered by subsidised 
competitors, British Steel has 
concentrated on high value 
jirfijwi products. 

The Toyotasa contract was a 
ffiBRgift PXMirrp TA. The venture 
could not get the quality of gal- 
vanised steel it wanted for tbe 
care from local suppliers and is 
instead buying two grades 
from British Steel and SoUac, 
part of Usinor Satilor, and a 
third grade from Nippon SteeL 

British Steel won the order 
on tpnhTiirai performance and 
price. It was also helped by 
being a supplier of steel cofl for 
Toyota’s UK plant near Derby. 

The steel for fee Toyotasa 
car bodies is to be processed 
into blanks by British Steel 
Distribution at Warlay in the 

West and shipped by 

Mitsui to Turkey. 

Steel for the factory’s pre- 
coated cladding was shipped 
from Shotton, north Wales, and 
profiled into polyurethane- 
filled roof and wall panels at 
British Steel Yasan in Istanbul, 
another joint venture in which 
British Steel has a 25 per cent 
stake. 

The Yasan joint venture has 
won 10 other small contracts 
and was profitable in its first 
year erf operation. It is now bid- 
ding to be subcontractor for 
whichever of six construction 
companies builds a proposed 
Honda car plant in Turkey. 


Jarvis shares fall as 


loss emerges at £3 .2m 


By Graham Denar 


Shares of Jarvis dipped 3p to 
13V&P yesterday after fee 
building, civil engineering and 
property group announced a 
further deficit reflecting can- 
tinuing problems in its con- 
struction activities. 

On turnover down 23 per 
cent to £70^m, fee pre-tax loss 
for fee 1993 year narrowed 
from £3.72m to 23.16m. 

Mr Harvey Bard, chairman, 
said t hat despi te a “reason- 
able” contribution from prop- 
erty and an improved showing 
from the products and services 
side, the group Incurred losses 
“significantly greater than 
anticipated” in construction 
where “severe trading condi- 
tions . . . showed no sign of 
improvement”. This, he said, 
had dealt a “severe blow" to 


recovery hopes expressed at 
the Interim stage. 

Tender prices were 
depressed by “intense” compe- 
tition, making tt difficult to 
cover overhead costs. Substan- 
tial loss provisions were 
required against a large road 
contract in Essex where prob- 
lems continue, while a pipe- 
line contract for Severn Trent 
Water incurred heavy losses 
before its completion. 

Despite fee £2.4m rights 
issue last summer, sharehold- 
ers funds dipped to £13m 
(£l3.3m) by fee year end, 
equal to 36p per share. 

Future cash demands of a 
reduced construction opera- 
tion will be fended by realis- 
ing part of fee investment 
property portfolio. 

Losses per share were lOJSp 
CMp rights adjusted). 


Cropper 
doubles 
to £2.6m 


# r - r 


NOTICE CONVEN9K5 THE ORDINARY AND EXTRAORDINARY GENERAL MEETING 


Shareholder* an hereby notified that the OrcHnary ml Extraordinary Qenaral Mooting wffl bo held In tha 
Conference Hal at 34, Via Bertola, Turin, at fl.30 a.m. an the 28th of June 1994, and, V nacaaaaty. a second 
meeting wB bo held on tha 30th Jura 1994, at tha same time and place, to dtacuss and resolve tha following 

AGENDA 


OnSnsiypsrt: 

1. Bond of Dkactafrf Report and Statutory Auditors' Report; Financial St atements for tha year ended 


3 let December 1993; r ele va nt resoiutiors. 


2. Appointment of Independent Auditors entrusted wfth auditing Stef's Financial Statement* and tha 
Group-a ConsoficMed FtaenoU Statement* for tha yeara 1994-1995-1996. 


3. Appo in tmen t of Director*. 
Etlminflnay part: 


1. Proposal to Incream tha there capital Item Lire 4,000.000,000.000 to Ure 8,281 ,212,121 .000 by issuing 
681,212,121 ortS nary than each with a nominal value of Lira 1,000, that will rank for dividend aa of 
1S1/1994, reoeived for tatiluta per la Rtooefeiolona tnd m t i Ms (IRI) 8-p.A. In exchange for tha oonbtbudon of 
Its credit to ffttTBL S.pA In accordance with Law 531/1993, at a price of Lire 6,600 par ihars, hdurfng a 
premium of Lire 5,600, exchKttng preemptive rights; consequent modification of art 5 of tha AiSctaa of 
Association; grading of the relevant power*. 


Relevant defeeratiora concerning loan* from the parent company. 


Shareholder s aha! have the right to attend tits M eetin g provided that, at least five day before tha aata- 
bBshed (Me for tha Meeti ng , they have deposited their ordinary aharae with tha Company's Treasury 
Department at 28, Via Bertola, Turin or 41, Corao tfttaila. Roma, or wth any other rtay OMhOltoed banka am 
wofl aa through Monte Tttoti SjiA, far the share* managed by IL 


Abroad, onBnary shares may be dapooBsd wtttc 
London: Banca Co mm ar dal a WaBanaS.pA- 42, Graham Street -EC2V7LA; 


CredKa Rafiano S.pA. - 17, Moorgata - EC2R 6HX: 

Banca dl Roma S.pA - 87, Gresham Street - EC2V 7NQ; 


New York: Banca C o mmard a la Ita fi iwa S.pA - Ora WWam Street - N.Y. 10004; 
CretOto Hatiano S.pA - 375, Part Avenus - N.Y. 101 G2; 


Parts: Banca Nartona l a dal Lavoro S 49 A - 26, Avenue das Champa BysAes - 75008; 

Rnkfurt 

am Maiit: laSuto BancarioSanPadodl Torino S jpA -Eschershekner LBndstrassa, K-D6C322; 


Zurich: Lavoro Bank A.G. -Tatadcar, 21 -8001. 


on behalf of the Board of teractora 
BJagfo Agnes 
Chakman 


The Company's Financial Sta tem ents, the relevant enclosures, and the Reports of the Board of 
Directors, of the Statutory Audtara and of the Independent Audtore, wffl be deported in accordance wfJi the 
low at Ihe Offices hi Train, Via Bertola, 28 and In Rome, Corso dltaUa, 41, from the 13th Jura 1994. 

The (He containing the reports and Financial Statement* also Indudes ths Group's Consolidated 
Financial Stttanwtis together with 8 m refavamindepandertAutStorti Report. - 

The Reports of the Bored of Directors to the Extraordinary General Meeting, the opinions rtf (he 
Statutory and Independent Auditors, aid the report provided by ftw expert appointed by the Praddent of the 
Tribunal of Roma concerning the proposal to Increese the share capital wM ado be deported at the store- 
said offices from (he 13th June 1894. 

The above documentation wrfl as usual be sent cftectly to Sharehokleni who urea*/ attend the M s sito g 
and to any Sharetaktero who shodd so request by promptly caSng the fbtowing telephone numbers: Turin 
(Oil) 8B851; Rome (08) 8S881. 


Tha afore said documents - In draft form - wffl be aval able for Shareholders at Hie a foresaid offices In 
Tirti and Rente from tha morning of 23rd Jura. 


^ 1 

£*£12 


Ontskfotbe Toyotasa plant at Adapazari, showing steel cladding 


Next door to the venture, on 
a dusty industrial estate, a 
steel service centre owned by 
Yasan, 50 per cent shareholder 
in BSY, is bring converted Into 
a showpiece for steel cladding. 

The Toyotasa plant was 
rtedgiwt by Ove Arup, but per- 
suading Turkish architects to 
specify more steel for factories, 
offices and even high-rise 
apartment blocks may not be 


“It’s just that we have been 
slow to rhang w from concrete," 
said Mr Sarik Tara, chairman 
of Ratal. Turkey's largest con- 
struction company and builder 
of the Toyotasa plant 
Mr Boyd is batting that 
where Enka goes, other Turk- 
ish construction companies 
mil surely follow. 

He also hopes British Steel 
can benefit indirectly from the 
push by the Turkish construc- 
tion sector into eastern Europe 


and neighbouring CIS repub- 
lics. The immediate prospects 
of further work in Turkey for 
BSY are not that bright 
because of Turkey’s austerity 
package announced in April 
and uncertainty over the 
future of the economy and the 
Turkish lira. 

Industrialists are holding 
bade from building new facto- 
ries, but Mr Boyd says fee 
long-term future is quite good, 
with a lot of Infrastructural 
work needed In Turkey. 

The trading company ia also 
likely to see volumes foil this 
year, after rising steadily to 

110,000 tonnes last year. 

But Mr Boyd has high hopes 
of developing the market for 
more specialised UK flat-rolled 
steeL 

He is currently frying to per- 
suade Arpalik, the fast-growing 
Turkish white goods producer, 
to buy white pre-painted steel. 


rather than set up a paint rimp 
at a proposed now (ridge fee- 
tory. 

At Toyotasa, meanwhile; Mr 
Ozdembr Saband, president, 
admits he is relieved fee plant 
is opening in September rate 
than now, when car sates is 
Turkey have virtually -groom 
to a halt. 

But although he is less opti- 
mistic than some about fee 
Turkish car market, be stiQ 
believes tt will rise from a 
record 440.000 units test yeer to 

600.000 by the end of the 
decade. 

Toyotasa is due to produce 
about 2,000 cars this year and 

30.000 In 1995. 

It has promised tha Turkish 
government tt will have cap ac- 
ity of 100,000 by May 1937. 

The venture is also studying 
whether to add forte Tbynta 
models, said Mr Saband. - 

On current forecasts of 
demand, British Steel’s supply 
of blanks would test about tour 
years, and while then an no 
guarantees, the UK company 
should be in a good position to 
supply for longer. 

Toyotasa has promised Ank- 
ara that cars from the plant 
will have 70 per cent load 
content alter five years of pro 
duction. 

But If Turkey is in the Euro- 
pean Union by then, tin UK 
steel - and engines being 
supplied by Toyota’s Deaside 
plant - would count as local 
content. 

Also, while Mr Saband 
believes component suppliers 
may set up around the car 
plant as demand grows, atari 
for the car bodies will not 
be available In Turkey “for 
the foreseeable future” he 
says. 

tt may be going a bit for to 
bracket Adapazari with Coven- 
try or Luton, but at least parts 
of the plant's new can will be 
British. 


NEWS DIGEST 


Trinity contract 


Increased sales volume and 
reduced interest charges 
helped James Cropper, the 
Cumbria-based paper and 

board wurawfa rin r a r «T mnffTTx -o 

record profits. 

On turnover ahead 13 per 
cent, to £45,7to, profits before 
tar more than doubled from 
ELSSm to S2JS6m for the 53 
weeks ended April 2. 

The directors attributed a 
“significant reduction" in bor- 
rowings to the group's strong 
cashflow. 

Order books were currently 
fell and sales above budget. 

A recommended final divi- 
dend of 2.4p brings the total for 
the period to 3£p (3JLp) covered 
over 5 times by earnings of 18p 
(9.4p) per share. 


Mr Geoff Hollyhead, chairman 
of Trinity Holdings, told the 
annual meeting that fee 
vehicle manufacturer had been 
awarded a contract to supply 
Badgerline with 576 bus chas- 
sis. 

Together with further orders. 
Including 160 chassis for Stage- 
coach, the contract cons t i t uted 
a recced monthly intake for the 
Dennis Specialist Vehicles sub- 
sidiary, to ta lli ng worne ff Ktoi , 

This latest contract pushed 
Trinity's order book for the 
current year to some £!00m. 


base and the Introduction of 
new products and services. 

Turnover rose from £llm to 
£l3.4m, including £lm from 
acquisitions. Earnings par 
share were 3J58p (3.4p losses) 
and an increased final dividend 
of 1.25p lifts fee total from 
1.75p to 2p. 


Umeco in black 


Umeco, fee USM-traded air- 
craft refueller manufacturer 
and seals and sealants concern, 
ended fee year to March 31 
wife, pre-tax profits of £511,000. 
Last time saw losses, FRS ^ad- 
justed, of £144,000. 

Directors said the perfor- 
mance reflected a lower cost 


JLivingwcll Health 

LLvingwril Health and Leisure, 
a health club operator, has 
been bought by Its manage- 
ment from the Mannai Invest- 
ment Company for £10.6m. 

Funding was arranged by 
NatWest Ventures, which 
underwrote £3m of new equity, 

Mannai has retained a 
minority interest 


During fee 12 months to 
March 31 BA*s pre-tax profits 
rose 63 per cent to £S01m, 
against fiffim. 

Sir Cohn, the highest paid 
director, received an increase 
to £492.862 (£429,949) In hia 
baste salary with a farther per^ 
fonnance related £61,760 this 
time. Of the comparative figure 
£86,691 related to hia period 
from being appointed chair- 
man in February 1993. 


BA chief pay rise 

In his first foil year as chair- 
man of British Airways, Sir 
Colin Marshall received a 19 
per cent increase in his total 
pay, from £663,830 to S7B301S. 


CONTRACTS & TENDERS 



QR-JPPO IP.: 


THE WELSH OFFICE 


Y SWYDDFA GYMREIG 


1! 


TENDER FOR 

THE CAREERS SERVICE IN WALES 


The Careers Service has a key role In ensuring the economic success of Wales: 

• it helps young peopte and others make the right choices of 
education, training and employment; and 

• it works with schools, colleges, employers and others to build a more enterprising society. 

The Secretary of State for Wales is now issuing invitations to tender for the provision of the 
Careers Service from 1 April 1995 In eight areas, covering the whole of Wales. Careers Service 
providers will operate within Welsh Training and Enterprise Council (TEC) boundaries with the 
exception of West Wales, where the Dyfed and West Glamorgan local authority boundaries will 
apply. 

AN OPPORTUNITY FOR YOUR ORGANISATION? 

Any public or private sector organisation interested in providing these services under contract 

10 .°? ain ac °Py°fthe prospectus. The dosing date for the 
receipt of teds is 3 October 1994 and the Welsh Office expects to notify the setecL hirtiww 

each area by 31 December 1994. To find out more about what is involved and the Department's 
requirements, either telephone (0222) 825863/825847 or write ta Careers GuidancTZSi 
Industry and Training Department. Welsh Office. Cathays Park, CARDIFF CF1 3NQ. 8 ^’ 


TENDR AR GYFER Y GWASANAETH 
GYRFAOEDD YNG NGHYMRU 


— ■ iviuu 

Mae gan y GG ran allweddd with sierhau llwyddiant economaidd Cymru- 

P0bl * "* 1 wnajd y d “ - '-ere. . 

gw*** gy^g y^ion, «**, eyfleg^ ac ^ % 

Yn awr mae Ysgrifennydd Gwiadol Cymru vn cvhoedrii j ■ . 

a 1 Ebrill 1995 mewn wyth ««. gan I" d “’ d ™ ' “ dd * p * u SS 
o fewi ffiniau Cynghorau Hyfforddi a Menter K H M ) V ° G *" 9** ithredu 

ffiniau awdurdodau lied Dyfed a Gorllewin Morgannwg ’ "o V" 1 Gwfcain Ne odwir at 
CYFLE l*CH CORFF CHI? 

Dyfai unrhyw gorff yn y sector gyhoeddus neu breffat syd d s dirlrtnrH-h 
gwasanaethau hyn gysylttu-fl’r Swyddfa Gymreiq i naei rnn ; dt ^ deb mewn dar P aru r 
cebiadau ddod i law yw 3 HydreM994 acTeV Y " 

ymgeiswyr a ddetholir ar gyfer pob ardal erbyn 31 Rhagfyr i^4 | oart *^52 ^ 9Wyb ° d Yt 
am ofyrnon yr Adran, ffoniwch (0222) 825863/825847 neu 3,11 ty 0 x 

Cangen Cyfarwyddyd Gyrfaoedd, Adran Diwydiant a , 

Cathays, Caerdydd CF1 3NQ. My wddian t, Y Swyddfa Gymreig, Parc 



,.,1 lla 

^ ih ‘ 

, H 111* 11 * 


Hemingway buys 

Hemingway Properties Is to 
acquire the head leasehold 
Interest in Templars Square 
shopping centre at Cowley, 
Oxford, for £16m. 

Templars Square, which was 
developed in 1965 and refer- 
Ushed in 1989, consists of 37 
individual units providing a 
total of about 240,000 sq ft of 
retail space. Net Initial income 
is £L4m a year, expected to 
increase to about £L6m a year 
over the next three years. 


Bannc 


i Ml 


sees hnuvm 


J iwqilioiKt! |’..i 
frtisjU'i.'i i;’ v - v I* 




*11 lllo 


k'l 

I 


FINANCIAL TIMES TUESDAY JUNE 14 1994 


M A 



COMPANY NEWS: UK AND IRELAND 


Royal Bank expands in “ 

US with $140m buy provision 


By JohnGapper, 

Banking Editor 

Royal Bank of Scotland yes- 
terday announced a further 
addition to Ottbans Financial 
Group, its fast-growing US 
retail hanking subsidiary with 
the proposed d&Sm (£93.2m) 
acquisition of the Massachu- 
setts-based Quincy Savings 
Bank. 

Royal Bank said it would 
inject gusm of capital into Cit- 
izens to fund th e purchase, 
which is the fourth acquisition 
in the past year, and the sev- 
enth since it acquired Ci tizens , 
the fifth largest New Knpfonif 
bank, in 1388. 

Royal Bank is paying LS 
times the book value of 
Quincy, or 925.75 per share. 
This Is higher than the multi- 
ple of its past acquisitions, 
which it said was because of 
growing competition to buy 
hanks as part of an industry 
consolidation. 

Mr George Mathews on, 
Royal Bank's chief executive, 
said that the acquisition, 
which is subject to approval by 
Quincy's shareholders and is- 
olators, would reinforce its 
presence on the east coast of 
Massachusetts south of Boston. 

He said that Citizens would 
be able to cut costs signifi- 
cantly in Quincy's 14-branch 
network by centralising 



1% ■ 


George Mathewson: costs will be cut by centralising operations 


operations. Some branches are 
expected to be closed and com- 
bined with existing Citizens 
branches. 

Quincy made a first quarter 
profit of *L9m this year after 
reporting a full-year loss for 
1993 of yft sm This was mainly 
caused by provisions for loans 
and real estate losses of {23m 
following the New England 
property market downturn. 

Mr Mathewson said Royal 
Bank baft examined Quincy's 
asset quality and was satisfied 
that no further problems 
would emerge. He said it had a 
very strong deposit base, and 


Citizens hoped to sell other 
products to its customers. 

He said that Citizens expec- 
ted to expand farther through 
acquisition, but expected that 
it would not grow beyond 
$12bn in assets. The purchase 
of Quincy, which has assets of 
{883m, will bring Citizens' 
assets to $8Sbn. 

Mr Mathewson said the pur- 
chase would weaken Royal 
Bank’s capital ratios only 
slightly. Royal Bank did not 
Intend to sell Citizens, "but 
obviously we want to make it a 
better business which would be 
more attractive”. 


Banner Homes at £1.2m and 
sees housing market recovery 


By Joan Gray 

Encouraging demand helped 
Banner Homes Group, which 
obtained a full listing in 
December, increase pre-tax 
profit far the year to March 31 
from £250,000 to £1.2m. 

Turnover was ahead at 
£8u31m (£6.63m). 

Housing output more than 
doubled with 68 units sold, up 
from 32, and Mr Stuart Cros- 


sley, chairman, was optimistic 
about a recovery in the mar- 
ket 

"As values edge upwards 
negative equity problems 
appear to be receding. There is 
now a whole new generation of 
home owners who, since the 
market bottomed out, have 
seen the value of their home 
Increase and the cost of their 
mortgage decrease." 

The £3m proceeds of a rights 


Exceptional gain cuts 
Prospect loss to £0.5m 


Prospect Industries, the 
specialist eng ineer, reported a 
lower seasonal loss of £483,000 
pre-tax far the six months to 
March 31, against £L24m. The 
result was helped by an excep- 
tional gain of £736,000 arising 
from the sale of a loan note. 

Mr Philip Wllbraham, chair- 
man, said the company contin- 
ued. to operate in an aggressive 
and competitive environment 
However, it bad won a record 
number of orders, including 
increased work overseas. 


He added: "At this stage of 
the year the future looks 
encouraging." 

Taking into account the out- 
look the interim dividend is 
raised from 0-275p to 0.29p. 
Losses per share were down at 
O.OSp (0.56p) or 0.05p (0.4 Sp) 
frilly diluted. 

Turnover slipped to £ 21 .4m 
against £22.1m including 
£594,000 from discontinued 
activities. The operating loss 
from continuing activities was 
lower at Q.Olm (£L03m). 


BUSINESSES FOR SALE 


Appear In the Financial Times 
on Tuesdays, Fridays and Saturdays. 

For further In f ormation or to advertise in this 
section please contact 
Karl Loynton on 071 873 4780 
or 

Melanie Miles on 071 8733308 


FINANCIAL TIMES 

twpwi wawnrg mi s i w 


issue received in January have 
been invested in new sites and 
the company plans to have 278 
units under construction on 20 
sites by the end erf 1994. 

Gearing at the year end was 
104 per emit, with borrowings 
covered by the £900,000 income 
stream frtm the fully let indus- 
trial properties. 

Earnings came out at &3p 
(l.9p). Dividends are resumed 
with a proposed final of lp. 

New chief 
at Shanks 
& McEwan 

By Peggy HoWnger 

Shanks & McEwan, the waste 
management company, yester- 
day closed the book on four 
months of searching to 
announce the appointment of 
Mr Mike AveriH, group operat- 
ing officer, as chief executive. 

He replaces Mr Gordon Wad- 
dell, who had been acting as 
temporary chief executive 
since the abrupt departure of 
Mr Roger Hewitt in January 
following a profits warning. Mr 
Hewitt is understood to have 
left the group following pres- 
sure tram institutional inves- 
tors over Shanks’ performance 
and a lack of confidence in its 
management. 

Mr A verill, 43, had been 
tipped as the most likely candi- 
date to replace Mr Hewitt He 
came to Shanks through the 
acquisition of Rechem in 1993. 
where he had been managing 
director. 


THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY 


red after 
provision 
of I£8m 

By Caroline Southey 

Uni dare, the Dublin-based 

industrial group* fell into the 
red with pre-tax losses of 
l£4.6xn (£4. 7lm) in the six 
mouths to March 31 after a 
I£8m provision to dispose of 
its wire businesses. 

Profits last time were 
I£2.68m. 

The interim dividend, how- 
ever, is lifted to 4L5p (4.4p), 
because, before the provision, 
operating profits rose 26 per 
cent to I£&89m QE3.08m) on 
sales of I£84£m (I£63-3m>- The 
wire businesses recorded 
losses of 12700,000 In the six 
month period. 

Mr Peter Gray, finance 
director, said the proposed 
divestment was an Important 
piece of refocusing for the 
company and would reinforce 
welding and hMting RB Uni- 
dare's core businesses. After 
the disposal, nearly 85 per 
cent of the company’s turn- 
over will be generated by 
these two sectors. 

He anticipated the second 
half would show improvement 
subject to the elimination of 
the losses from the wire divi- 
sion. 

Mr Gray said the welding 
division continued to perform 
well, mainly due to the inte- 
gration of Nasco, the US weld- 
ing distribution business. In 
the UK increased exports 
pushed up galas although the 
outlook was “patchy*, he said. 

Uni dare maintained its 
share of the UK's storage 
heater market although profits 
from that division were below 
previous years. 

Losses per share stood at 
2&53p (earnings liL52p). 

The shares dosed lOp down 
yesterday at 335p. 


Better than expected growth in Latin America and eastern Europe 

Oriflame advances 17% to £14m 


By Peggy Hofllnger 

Strong growth In new markets 
has encouraged Oriflame Inter- 
national, the door-to-door cos- 
metics group, to give share- 
holders their first dividend 
increase in four years. 

Oriflame accompanied this 
with the announcement of a 17 
per emit rise to EL4m in pre-tax 
profits for the year to March 
31. 

Sales growth, held back by 
currency movements, 
increased by just 4 per cent to 
£86.7ul 

Mr Robert af Jochnick. chair- 


man, said the three years of 
steady profits growth had left 
Oriflame well positioned for a 
dividend increase. The pay- 
ment was raised 9 per cent to 
B.Tp for a total 8 per cent 
higher at 13p. Earnings were 10 
per cent up at 22.4p. 

The shares rose 6p to dose at 
270p. 

Mr af Jochnick said Oriflame 
had enjoyed better than 
expected growth both through 
its own efforts in emerging 
markets such as Latin Amer- 
ica, and through Oresa, its 
eastern European, sister com- 
pany. 


Oriflame founded Oresa 
three years ago to tackle the 
newly-opened eastern Euro- 
pean markets. To minimalist* 
risk, Oriflame had limited its 
stake to 24 per cent The UK- 
quoted group receives royalties 
for use of the Oriflame brand- 
name and supplies product 
from its Irish factory. 

Oresa contributed a total of 
£5m to overall profits last year, 
Mr af Jochnick said. 

Aco, the Swedish toiletries 
brand acquired in 1991, contin- 
ued to exceed all expectations, 
Mr af Jochnick said. Sales were 
9 per coat ahead in local cur- 


ICI considers Pakistan plant 


By Daniel Green 

Id is considering spending more than gSOGin 
(£200m) on bunding a ehemiraig plant ip Pakis- 
tan. 

The plant would increase IGTs manufacturing 
capacity in teraphthaKc add (PTA), used in the 
manufacture of polyester fibre, by one third and 
be the first such plant in Pakistan. 

The project has yet to receive the approval of 
ICTs board, a process which is likely to take 
several months. 

The investment would come from ICI 
Pakistan, the 6L5 per cenbowned .subsidiary, 
which already produces polyester fibre, soda 


ash and other substances. 

The plant would have a capacity of 300,000 
tonnes a year, compared with the 250,000 tonnes 
PTA plant ICI built two years ago in Taiwan. 

Id said yesterday that the Pakistan market 
for PTA was growing at IS per cent a year, 
currently satisfied entirely by imports. 

The PTA market is growing quickly around 
the world, with Amoco, the US petrochemicals 
company, the market leader. Id said global 
PTA capacity was 9.4m tonnes a year, compared 
with 2Jhn tonnes a year in 1980. The growth was 
the equivalent of two or three “world scale 
plants” such as that proposed in Pakistan being 
built each year, said ICL 


Maher gets £0.39m pay-off 


By Maggie Uny 

Mr Terry Maher received a 
total of £581,390, including 
compensation for loss of 
office of £392,176, in his 
last 10 months as chairman 
and chief executive of Pentos, 
the Diflans and Rymans retail 
group. 

Mr Maher, who founded the 
company in 1972, quit on 


October 29 last year after the 
group announced its first 
loss. 

For 1993 as a whole, the pre- 
tax loss was £70.6m, and in 
March the group launched a 
£45m rights issue to restore the 
balance sheet 

The annnal report for 1993, 
published yesterday, showed 
that in the period up to Octo- 
ber 29 Mr Maher received 


£171,519 in salary and £17,595 
in pension contributions as 
wen as the compensation pack- 
age. 

Sir Kit McMahon, who took 
over as niminmin on a non-ex- 
ecutive basis, was paid £2,671 
in fees in the last two months 
of the year. 

The new chief executive, Mr 
Bill McGrath, was appointed 
on January l this year. 


rency, although exchange rates 
left the sterling contribution 5 
per cent lower. Aco contrib- 
uted a further £5m in profits to 
the overall group. 

The i^hnirman said Oriflame 
was confident of substantial 
growth this year through its 
focus on emerging markets 
such as Latin America and 
Asia. These were showing a 
substantial improvement in 
sales for the first two months 
of the year, albeit from a small 
base. He expected emerging 
markets to account for about 
£15m of turnover by the end of 
the year. 

Dixons to 
accelerate 
Currys revamp 

Dixons, the electrical retailer, 
is accelerating the shift of its 
Currys chain into out-of-town 
superstores by disposing of 
100 high street branches this 
year, writes Neil Buckley. 

The group has appointed 
Conrad iUtblat Sinclair Gold- 
smith to rationalise Currys. 
Costs of the programme will 
be disclosed nest month. 

Dixons said moving Currys 
out of town had long been Its 
aim, but although it had 
reduced the high street stores 
from 500 to 335, it had been 
held back by the sluggish 
property market. Keeping 
stores open had often proved 
better than closing them with- 
out being able to dispose of 
the lease. However, Dixons 
said the property market was> 
now recovering and the “trend 
of improving returns in the 
high street stores has come to 
an end”. 

Dixons plans to add up to 40 
stores to Currys’ 158 super- 
stores this year. 


Six of the Best 


March 1994 

£65 million 

Management Buy-In/Buy-Out 


March 1994 

£20 million 

Management Buy-Out 
of 


March 1994 
£25 million 
Employee Buy-Out 


PRINCIPAL 

HOTELS 


Led, structured and arranged by 
NatWest Ventures 


May 1994 
£14.5 million 

Management Buy-Out/ Buy-In 


Keltico 

Led, structured and arranged by 
NatWest Ventures 


May 1994 
£21 milli on 
Management Buy-Out 


SOUTH- 


Led, structured and arranged by 

NatWest Ventures 


June 1994 

£10.6 million 

Management Buy-Out/Buy-ln 


TIPHOOK pic 

Sale of the world’s second largest container leasing fleet 
to Transamerica Corporation. 

This transaction valued the fleet at £ 757 million 


NETWORK Si 

ORODP LIMITED 


ACT Group PLC 

Led, structured and arranged by 

NatWest Ventures 


©OOK&1 MSDfOaL 
•umitod 


Led, structured and arranged by 

NatWest Ventures 


LivingWell 

Health Clubs 


Led, structured and arranged by 

NatWest Ventures 




J O HAMBRO MAGAN & Co 

initiated the transaction and acted as 
joint financial adviser to Tiphook 


j O HAMBRO MAGAN & COMPANY LIMITED 
32 Queen Anne’s Gate London SW1H 9AB 
Tel: 071 233 1400 Fax: 071 222 4978 

Member of The Securities and Futures Authority 


To find out more, please contact David Shaw, Managing Director, 
NatWest Ventures, 135 Bishopsgate, London EC2M 3 UR 
Telephone: 071 375 5100 Fax: 071 375 6262 



NbiKfca UmUal A meatcr of UfRO Upon of NaiKin Markets, carfvrau and tar 



I 














\.hiua 


FINANCIAL TIMES TUESDAY JUNE 14. 1994: 


Al umini um and coffee 
lead renewed advance 


COMMODITIES AND AGRICULTURE _ 

e Making the most of oil in a hostile climate • ; 

John Thornhill highlights the problems of exploiting reserves around Kagalyn, Siberia^ 

1 ..... .. ... . ... . . .H pOTTVf 


By Richard Mooney 


Base metals and soft 
commodities made a bright 
start to the week with leading 
contracts at both the London 
Metal Exchange and the Lon- 
don Commodity Exchange reg- 
istering big gains. 

At the LME the pace was set 
by the al uminium market, 
which saw the three months 
position confirming last week’s 
break above the $1.4fl0-a-tonnfl 
resistance area. The price 
dosed at ¥1,427.25, up $ 21 , after 
reaching a 33-mouth high of 
$1,433 at one time. 

Dealers told the Reuters 
news agency that there was a 
growing in the mar- 

ket that al uminium 's funda- 
mentals were turning round at 
last after a long period during 
which oversupply had lifted 
stocks of the metal in LME reg- 
istered warehouses to unprece- 
dented levels. 

They said the next target on 
the upside was $1,460 a tonne, 
which could signal the start of 
a major bull market. 

"The tide is turning for alu- 
minium said Mr William 
Adams, research analyst at 
London broker Rudolf Wolff. 


"As long as smelters do not 
renege on their cutback 
announcements, the funda- 
mentals should continue to 
improve.” 

Aluminium's strength helped 
the copper market to repeat 
last week’s assault on resis- 
tance at $2,400 a tonne - and 
this time it appeared to have 
succeeded. Good buying was 
attracted by an early dip to 
82,380 for the three months 
price and, after peaking at 
$1,423, it closed $27.50 to the 
good at $2,41L50. It moved up 
again in after hours trading to 
$2,420. 

But Mr Phillip Crowson, 
chief economist at RTZ. the 
world’s biggest ™vnmg group, 
told an analysts’ meeting in 
Paris that copper's current 
price level was temporary and 
would “see a retreat before 
1995”. 

Copper supply was now foil- 
ing short of demand, he said, 
but in the next few months 
fiipfip Russian exports might 
resume now that cold weather 
would no longer slow output 

At the LGE, meanwhile, the 
September delivery robusta 
coffee price surged to $2^30 a 
tonne in an active morning ses- 


sion, adding $182 to last week's 
$57 advance. It was trimmed 
back to $2,290 at the close. 

Traders attributed the fresh 
surge to Friday’s US Depart- 
ment of Agriculture report pre- 
dicting lower world green cof- 
fee output in 1994-95. The 
department said it expected 
production to total 90.6m bags 
(60kg each), down 4 per emit 
from last season's harvest 

Reuters reported that buying 
was well spread between trad- 
ers, commission houses and 
speculators, with some invest- 
ment funds also returning to 
the fray. 

With coffee's bullish mood 
firmly re-established some of 
the enthusiasm spilled over 
into the cocoa market where 
September delivery futures 
rose £21 to £1,016 a tonne. “The 
funds are looking for value.” 
said one trader. “They seem 
happy to sit and let the price 
go up. rather than liquidate 
long positions." 

• Coffee stocks held by Brazil- 
ian co-operatives fell in May to 
1.79m bags from 2J6m bags in 
April, said the National Coffee 
Council, a growers organisa- 
tion. reports Reuters from Rio 
de Janeiro. 


I t Is a relief to leave Koga- 
lyn. The name of the 
Siberian oil town - mean- 
ing "a place where men perish" 

! in t he local tflianta dialprf - jg 
entirely appropriate; Kogalyn 
suffers from one of the most 

hQSrife riimatefi frwrngn tn man 

Built in seemingly intermi- 
nable swamp land, Kogalyn 
shivers in temperatures of 
minus 55° C in winter and 
scorches In summer, when 
swarms of mosquitos come out 
to play. 

“Mother nature was not Wrwj 
when she put down oflfieirfg 
But Siberia is still one of the 
toughest places to work in," 
says one western oil man sur- 
veying the distant landscape. 

Even so, Soviet central plan- 
ners decreed more than 20 
years ago that the Tyumen 
region's oil reserves should be 
exploited. Kogalyn, a town of 
60,000 people, emerged as an 
important oil production cen- 
tre. 

It is doubtful whether any 
modem oil company having a 
nodding - acquaintance with the 
free market would develop the 
fields today. Kogalyn’s remote 
situation means infrastructure 
costs would likely to outweigh 
financial gains. But with the 
the development costs having 


already been covered in the 
Soviet ere it is becoming an 
attractive proposition to 
increase the yields of existing 
wells and develop adjacent 

ftelita 

Tho taclf has fallan to TjiVnfl 

Russia’s largest oil company, 


Mr Seaton Vainshtok, direc- 
tor general of LukaO’s largest 
production subsidiary. Koga- 
lymneftegaz, Is busy fighting 
fires an many fronts. But per- 
haps the greatest is the change 
of mentality of the wor k forc e , 
for whom cost was a seemingly 


‘Mother nature was not kind 
when she put down oilfields. But 
Siberia is still one of the tough- 
est places to work in.’ 


which was established hi 1993 
when disparate exploration, 
refining and marketing 
operations were welded 
together. Lukoil now accounts 
for 15 per cent of Russia’s oQ 
output Only Shell. BP and 
Brvnn are bigger in i*™ of 
oil extraction and refining. 

The challenges confronting 

the new mmpany - and the 
Russian oil Industry as a whole 
- are immense. Last year ofl 
production in the Tyumen 
region fell by 16.4 per emit and 
Lukoil's output slid from 57 Jm 
tonnes to 4&80L The PnmpHny 
expects a Anther decline of 5 
per this year. 


unknown cgnc«pt- 
Three hairs on your head 
are too few. But 3 hairs in your 
borsch are too many," he says, 
illustrating a need for a change 
of perspective. 


M uch attention is 
being paid to reduc- 
ing electricity con- 
sumption tha volume of 
water being pumped into the 
oil reservoir. Stricter produc- 
tion guidelines have been 
introduced. About 1,000 
employees have been laid off 
and a further 300 are on com- 
pulsory leave: Comparable sta- 
tistics axe hard to come by but 


Kogalyraneftegaz estimates 
that such measures have 
already shaved two to t hree 
perce ntag e points off the pro- 
duction cost of a barrel of oil. 
Annual savings could run to 
60bn roubles, it c la ims . 

Kogedymneftegaz is also try- 
ing to raise the yield of exist- 
ing flpMs. It Is drawing on the 
expertise of several western 
o p m pariipQ. One of them, Cal- 
gary Overseas, a private Cana- 
dian group, has already helped 
to “work over" 1,000 wells, at 
a a average cost of $ 220,000 
each. 

Mr Robert Lipsett gene ral 
manager of Calagary Oversees. 
frgrtmntps that those Improve- 
ments have helped to raise the 
output of the nearby Vatyegan 
Povkh fields by 10 to 15 per 
emit. 

“The Russian's have very 
sophisticated technology for 
the oil and gas industry but 
they do not meld It all together 
to maximise production and 
minimis e cost," he says. 

The Canadian contingent is 
steadily declining as the local 
Russians learn to co-ordinate 
such work themselves. Lukoil 

eventually hopes to transfer its 
own abroad. In collabora- 
tion with Agip of Italy, it has 
started oil projects in Tunisia 


and Egypt. 

But many of LukotiVptob- 
lems are beyond its control 
Financial upheavals Ur the 
Russian economy hast 
resulted in cashflow probtaos 
and Lukoil says its costoma. 
owe it SOObn roubles. It tk 
restructuring its financie to 
ensure that it has suffiefant 
qxh available in its operating 
companies. "You cannot a 
build an island of writ-being in 
a sea of economic troubles," 
says Mr Vainshtok. 

Lukoil has also tingled with 
the government over taxation 
issues and export quotas. The 
company wants to break free 
of the state grip and operate** 
a wholly-lndependant priva- 
tised company. 

The government intends, 
however, to retain 45 per cant 
stake in Lukyl for the next two 
years and will continue to 
Influence the company's 7 
actions. 

As a private corporation, 
however, Lukoil may face a 
fresh set of challenges, ft is 
already entangled In t fcttter 
legal dispute with Frimfcan- 
burg, a Houston-based oO com- 
pany. which is claiming more 
than $500m in damages for 
breach of contract, Lukyl 
denies the charge. 


Bean rescue planned for Rwanda 


By Leslie Crawford In Nairobi 


A tropical agriculture institute 
based in Cali, Colombia, has 
begun an emergency breeding 
programme for bean seeds to 
supply Rwandan farmers when 
the bloodshed in the centra] 
African country stops. 

“The war has riflimad half a 
million lives, but famine in 
war's wake may take millions 
more unless local food produc- 
tion can be restored rapidly.” 
Mr Gustavo Notes, the director 
of the International Centre for 
Tropical Agriculture (CIAT), 
said during a visit to Nairobi 

His centre, which runs a 
gene bank containing 285 
Rwandan bean varieties, plans 
to multiply 200 tonnes of seeds 


that will enable farmers to 
plant a new crop and restore 
the genetic diversity at Rwan- 
dan beans when peace is 
restored. 

The resumption of civil war 
in Rwanda, sparked by the 
death of President Juvenal 
Habyarimasa in an air crash 
eight weeks ago, has displaced 
millions of civilians inside the 
country and caused the exo d u -a 
of some 400,000 refugees. Aid 
workers have warned of the 

dang er of hrt panding faming aS 

the fi ghting and indiscriminate 
slaughter of civilians has 
caused formers to abandon 
their crops. 

Beans are the staple food 
crop for Rwandans, providing 
65 per cent of dietary protein. 


and 32 per tynt of their daily 
calorie intake. Before the war, 
CIAT introduced Latin Ameri- 
can climbing beans into 
Rwanda, which doubled yields 
in Africa's most densely popu- 
lated country. With 700 people 
per square kilometre and lim- 
ited farmland, Rwanda needs 
to increase crop yields if it is to 
continue feeding its popula- 
tion. 

Agricultural research sta- 
tions in Uganda, Tanzania, 
Burundi and Zaire will also be 
contributing to CIATs efforts 
to provide Rwandan formers 
with bean seeds. The 200 
tonnes are expected to supply 
about one-quarter of the farms 
in Rwanda with one kilo- 
gramme of seeds each. 


Indian government red-faced over sugar crisis 

Kunal Bose reports on a supply shortage that is being blamed on ‘import bungling’ 


T he failure of the Indian 
food ministry to recog- 
nise in Hma the extent 
of sh ortfall in sugar production 
in the current season and 
arrange sufficient imports h»c 
snowballed into a major politi- 
cal crisis for the federal gov- 
ernment. 

The opposition parties, 
which are putting pressure on 
tiie government to institute an 
independent enquiry the 
“sugar import bungling”, will 
no doubt taka a dv antag e of the 
issue during assembly elec- 
tions in the nine states at the 
end of the year. 

It was known quite early in 
the season that India would for 


the second consecutive year 
suffer a heavy setback in sugar 
production. The initial produc- 
tion estimate of 13m (repeat 
11m) tonnes for 1333-94 has 
been scaled down to 98m 
tonnes. According to industry 
officials, h ow e v er , the season 
may end with still lower out- 
put 

The enrreni year's produc- 
tion, plus opening stocks of 
3.2m tonnes, wfll hardly leave 
any sugar to be carried for- 
ward to next season after meet- 
ing tiie domestic requirement 
of over 12m tonnes. And as 
there is negiigibte production 
of sugar in the first two 
months of the seaso n . India 


cannot do without large-scale 
imports. 

The prospect of shortage has 
led to a sharp increase in the 
open market sugar prices. 
(Under the distribution control 
Tiwfamigm , 6Q per cen t of the 
industry’s production is sold in 
tiie open markat The 
40 per cent is distributed 
through fair price shops at 
fixed rates.) 

Even then, it was only on 
March 9 that the government 
allowed the duty-free import of 
sugar. Earlier, however, the 
government allowed the 
import of raw sugar for refin- 
ing by the local factories for 
reexport at a minimum value 


COMMODITIES PRICES 


BASE METALS 

LONDON METAL EXCHANGE 


Precious Metals continued 

■ GOLD COMBI (IPO Troy or: Sftroy or.] 


GRAINS AND OIL SEEDS 

m WHEAT LCg (E par tome) 


SOFTS 

■ COCOA ICE g/tawri 


MEAT AND LIVESTOCK 

■ UVE CATTLE CME ftaUXUba; cert*/fa 


Close 
Previous 
WgMow 
AM Official 
Kerb close 
Open ini 


nstad Matal Dracfidfl) 


Sttt 

Daft 


Opn 


Salt 

Oaf* 

Opm 



frit 

oaf* 


- Opm 


US Oaf* - - Opm 


’ PURITY (S par tonne) 


price 

dmga 

Og& 

tow tat Vol 


tataa 

ctaregs M0> taw 

tat 

Vol 


tafa i 

Hangs 

9* 

lew M W 


pries Mags Mgfe Law M 

Vri 



JOB 

3813 

-03 

3817 

3619 B61 42 

Jn 

11195 

■050 11290 11195 

248 

52 

Jri 

983 

+17 

996 

960 HU** 906 

JM 

65925 +0-100 68325 85.450 8188 

29<7 



JU 

384.1 

-03 

- 

. 

Sep 

10090 

+060 100.60 10050 

468 

33 

Sap 

1016 

♦21 

1020 

1002 U.*M 1502 

fa> 

6*700 -0975 68825 6**50 22978 

8713 

13895-4019 

1427-79 

Aag 

3859 

■02 

3859 

3839 70758 13987 

far 

10095 

+040 10190 10090 

2.136 

116 

Dec 

10*0 

+24 

10*1 

1023 25506 1966 

Bet 

87925 -OJW 68900 67960 15969 

1737 

1403 

143271396 

Oct 

388S 

-02 

3899 

3879 5.1*9 57 

J«i 

10295 

+090 103.00 10290 

1968 

134 

fa 

1060 

+20 

1082 

ton 28.128 57* 

Dec 

68675 -0300 89900 68475 11.179 

60 

140371404 

1432/1434 

Dac 

391.7 

-02 

1Q7 n 

3999 24.150 548 

far 

101*5 

+075 104.45 10390 

361 

63 

taW 

1074 

+23 

107* 

KF2 ia*Z> HI 

feb 

6820 -0*00 78250 68425 7J78 

4*0 

1403-4 

1423-4 

Fab 

395.1 

-02 

3959 

3949 5,619 <81 

far 

10695 

+0^ 10695 10590 

339 

10 

Jri 

1065 

+21 

- 

- 39*1 

Hr 

7U6W -0506 71300 70560 3374 

W 


1426-27 

TOW 




136917 15^486 

Taw 



ota 

414 

Tow 




tUJSB *96* 

Tstri 

78782 1X513 

202.786 

143928 


■ PLATINUM NYMEX (50 TTOy Stony cai 

■ WHEAT COT (5.000txj min; oania/SOto busfwQ 

■ COCOA CSCE (10 toons* S/tanoea) 

■ LIVE HOOS CME (eaOOOfcK ow«arib«) 



■ AfJUMWaiM ALLOY (S par tonnq) 


Ooee 

1415-20 

1420-5 

Previous 

1400-10 

1405-10 

High/low 

- 

1420/1410 

AM Official 

1426-30 

1422-3 

Kolb dose 


1420-30 

Opan H. 

3^29 


Total daOy tunover 

818 


■ LEAD ($ per tome) 



Close 

62B-3S 

6700-10 

Piwrtoua 

523-4 

540-405 

Hgh/kw 

530 

547/641 

AM Official 

629-30 

54MJ 

Kerb dose 


545-6 

Open Ire. 

37,742 


Total dally tunover 
■ MCKEL ($ per tom 

14^478 


CtoM 

6375-85 

8475-80 

Previous 

B420-30 

0510-20 

Hgfiriow 

6435/8430 

6685/6445 

AM Official 

6415-20 

6535-40 

Haiti clooo 


6455-00 

Open tw. 

59,359 


Total dally tunover 

19,148 


■ TIN (S per tome) 



Close 

5625*35 

5700-10 

Previous 

5610-20 

5685-90 

HJgfi/tow 

5645 

5720ra690 

AM Official 

5640-41 

5720-5 

Haiti dose 


5600-700 

Open Ire. 

16.88C 


Total daily turnover 

8232 


■ ZWC. acwdri high grade (1 par tonne) 

Close 

908-9 

092-25 

Previous 

968-9 

991-2 

Wflhnow 

972 

989reao 

AM Official 

071-1 £ 

995-6 

KsrO dose 


989-95 

Open Ire. 

103,397 


Tatel duly turnover 

37,199 


■ COPPER, grade A (S per toms) 


Close 

2397-8 

24115-12.0 

Previous 

2371-3 

2383-6 

High/tow 

2405 

24250376 

AM Official 

2405-6,5 

2416-9 

Haiti dose 


2420-1 

Open hL 

218,799 


Total daHy tunover 

105.815 


■ LME AM Official OS rare: 1JS134 


Jib 3983 +2.1 4010 3983 

Jri 4010 +0.1 4015 *02-0 12.192 1.030 

Ort 4015 +0.1 *07-0 4015 1031 537 

Jn <077 +0.1 407.7 <075 18M 24 

Total 225*7 2£M 

■ PALLADIUM WYMEX pop Troy oz.; S/troy tg.) 


JUB 

13825 

♦035 

- 

- 

87 

15 

Sap 

13850 

+OSO 

13850 

137-50 

3810 

117 

Dec 

1387D 

+880 13875 13730 

1890 

4 

Bar 

138J0 

+060 

- 

- 

1 

- 

Trial 





4.7W 

138 

■ $*xm COMEX (100 Troy az; Cents/troy as.) 

Jm 

5372 

+18 

- 

- 

1 

1 

Jri 

5385 

♦18 

5418 

5308 75,469 178*7 

fag 

MM 

+18 

- 

- 

- 

- 

S«P 

5432 

+18 

5408 

53*8 

15866 

878 

Dec 

5B0J 

+18 

5538 

5428 17885 

518 

Jan 


+18 

- 

- 

32 

- 


Jri 

341/2 

+Z/4 

3454) 

338/2120875 27825 

Jri 

1382 

+37 

1388 

1338 18.752 4814 

sap 

347/4 

+2/4 

351/D 

343/D 61.180 7850 

Sap 

1391 

+40 

1395 

1385 27825 5886 

Dec 

3SM 

♦2/B 

383/0 

354/0 08280 17895 

Ok 

1429 

+40 

1430 

1402 10561 480 

far 

36 W 

+40 

364/D 

357)0 10940 1.175 

fa 

145* 

+35 

1455 

1433 7807 M 

fa* 

354/0 

+0IC 

3SW4 

354/0 305 

fa* 

103 

+35 

- 

- 28*7 22 

Jri 

Triri 

338/2 

+3fl 

3398) 

33W4 1805 58 

290,788 83800 

Jri 

DM 

1405 

+33 

• 

- 28*5 

72JS7 ojm 


■ MAIZE CBTftOOObMfflfrccnte/Sfito bushel] 


M ZM 10 +1 M 27710 2800481280 77.100 

Sip 27QM +1/6 Z72/8 285/0192^480 21,905 

Dec 20*72 +2/2 2GS/4 258/0 <52.145 133.145 

■•r 270m +2/0 27im 285*1 52800 1055 

U*y 274/0 +1/4 274m 2800 1010 8S5 


■ COCOA QCCO) (SDR*i/tonna) 

W Jm Met 

CP* 100138 


Jn 4525 +0500 40525 47500 2.151 

M 4S500 +0925 41553 47.450 1531 2331 

tag 40225 +ODOO 41400 47250 8.553 1062 

Oa 44575 +0675 <4525 44.100 M30 521 

Use 44960 *4X275 4*925 44550 1228 260 

M 44500 +0200 44700 44500 610 58 

7*4 28507 7,120 

■ PORK BgJUE8 CME (405008 b: centaAbij 


fret <*■* 

101750 


IQ floy magi 1* 

■ COPFg LCE (SAonrwj 


124249 11317 Jan 


Triri 

■ BARLEY LCE (B per tome) 

12Z3H 230898 

Jri 

Sap 

Pm 

2329 

2288 

2258 

+181 

+140 

+148 

2360 

2330 

2283 

2191 10820 1810 
2200 18832 2ASB 
2240 7840 801 

Sag 

9025 

+0.10 

9825 

- 183 

2 

Jm 

2231 

+142 

2265 

2206 6*46 849 

fa* 

9040 

4085 

■ 

- 323 

- 

■v 

2186 

+127 

ZSQ 

2170 2810 286 

Jn 

100.75 

- 

- 

28 

- 

fa* 

2190 

+135 

. 

- 12B 

far 

10285 

+0115 

10285 

■ 17 

2 

Triri 




48874 B8M 

far 

Triri 

10480 



4 

586 

4 

■ COFFEE XT CSCE (37,6008m; esnu/fes) 


41915 4X175 *1850 41J75 407* 1J681 

41950 +0225 41950 40900 3564 96 

47J50 -0450 41400 47950 488 45 

46980 -0550 - 48950 37 4 

46950 - - - 33 3 

SUM -12 2 

1180 2971 


ENERGY 

■ CHUDE 09. NYMSX (42/MO US galls. S/bsrreQ 

Uteri Dsvf Open 

pries rings Hjb In W H 

JB1 1142 -096 1853 1896 85964 47987 

fag 1791 +O0T 1690 1792 83JM6 37903 

S* 1794 +095 17.71 1755 47,625 19,160 

0c( 1790 +006 1753 17.42 28,147 1400 

far 17.42 +006 1792 1798 19,416 2970 

Dac 1758 +096 17.43 1796 32964 3929 

Tufa 437,105123937 

■ CRUDE OIL IPE (S/barreQ 

Uteri Daft Opso 

talcs rings Mgh Van tat Vol 

JM 1655 -094 1040 1696 51.116 10171 

fag 1693 - 1650 16.16 51313 15504 

Sap 1113 4194 1015 1106 22937 3904 

Oct 1696 +004 1696 1693 9,160 1903 

far 1699 +004 1109 1693 1532 241 

Deo 1105 - 1006 1199 6956 554 

Trial 167500 46921 

a HEA-nwaoa.Hwie{ i< 29 Qo in ipfat can gria4 


■ SOYABEANS GET (5,000*1 BtiR; i 


JO 6306 +M 682/0 670/4237910 57965 

MO 869/0 +8/2 690/4 688/4 898W 17570 

tap B77/4 +12/4 5784) 6544) 47,790 3530 

fa* 063/2 +12/2 6674) 642/4304^70 107936 
JW 668/6 +11/2 670/4 6484) 20.750 1910 

Mar 6744) +10/2 8744) 8524) 11725 535 

TO* 74(MM518%400 

■ SOYABEAN OS- CST (B 0 . 000 e»: centals) 

Jri 27.70 +098 2775 2792 21920 5954 

Aog 2798 +095 2772 2792 119Q6 14*2 

Sip 27.61 +0.11 2795 27.15 11900 1901 

Ori 2793 +0.18 2795 2670 1244 1.210 

Dse 2190 +097 2195 2125 21556 2946 

Jan 2898 +135 2188 2115 2913 213 

Tstri 65906 11242 

■ SOYABEAN MEAL CBT (100 tony VtanJ 


2002 4X0 2004 1815 21503 7,100 

2009 +12 2005 1945 175*4 3^14 

1009 +18 1907 1812 10980 060 

1885 +18 1865 1817 5907 116 

197.1 +39 1 87.2 1905 18,169 4977 

1979 +37 1979 19 19 1941 77 

St, 123 16901 


LME goring W rate; 19200 

SpoCI.5205 3 060:15165 EBS6K15171 9s*El51fi8 


■ HIGH QRAOE COPPER (COMEX) 





Oaf* 

Ota* 



Closa 

cbsngs iflgb tow 

tot 

Vri 

Jn 

111.40 

+288 11180 11180 

567 

65 

Jri 

11180 

+280 11280 I10L25 33839 

8865 

fata 

111.60 

+280 11180 11080 

STB 

11 

Sep 

11185 

+285 Him 11025 15875 

3878 

ori 

11085 

+2.15 

272 

10 

Urn 

11025 

+215 

202 

- 

Taw 



6189* 10/696 


Uteri Day* 
pries dongs MgO 

Jri 4750 +059 4795 

fag 47.95 +048 4110 

tap *175 +039 *895 

Ori <8.75 +044 <175 

far 5090 +059 5090 

Osc 5190 +144 5190 

Total 


Low kd 
4655 31133 
4790 19964 
<850 13954 
4995 9937 
50.46 7938 
5195 11179 
127976 


Total St, 123 18*81 

■ POTATOES LCE (E/tanne) 

far 909 

Mar 1059 

AW 1479 +79 1410 1400 737 181 

■« 1400 

9m 1075 

Total 727 181 

■ FRBQHT (BffFEX) LCg (S10/tadex pofrfl) 


Jri 13890 +13.10 13990 13020 1*914 6,119 

6* 13770 +13*) 13825 12855 20912 5936 

DM 12850 +1090 12650 T27J0 12208 008 

far 12595 +1690 12105 12475 7924 206 

** 124.15 +1690 124.15 124.15 1910 12 

Jri 123.15 +1690 - - 123 

Total 5692813,181 

ta CtsrtE (ICO) (US canta/pomd) 

16 Jriri Price Pan. fay 

Corap. drily 11792 11790 

15 dqr Bangs 11692 117.12 

■ No7 PW3BUM BAWSUQAfl LCE (cantvttMj 

Jri 1293 +0.15 1293 1273 3976 298 

Ori 1295 +091 1275 1272 1996 25 

JM 1192 

far 1215 +006 GO 

Total 4928 321 

■ WWTESUOAB LCE (3/loms) 

fag 35170 +190 36290 39090 12,165 173 

(tat 33290 +1.10 33350 36190 8512 748 

DSC 32270 +190 32250 32200 862 39 

Mr 32290 +190 32350 32150 2953 35 

Msy 32150 +190 - - 201 - 

Afa 32090 +190 - 265 - 

Total 24902 999 

■ SIMM IV CSCE rnaOOOffie; cants/toS) 


LONDON TRADED OPTIONS 

Strflce price $ tame — Crita— — Am — 
g ALUUNKM 

(88.756) LME Aug Nov Aug Nor 

1375 68 102 20 14 

1425 37 74 42 68 

1475 19 51 73 SI 

■ COPPER 

(Qrads A) LME Aug Nov Aug Nov 


2400 

2460 

B COFFEE LCE 
2100 ______ 

2160 

2200 

■ COCOA LCE 

950 

975 

1000 ________ 

■ BRBfTCRUDJ 

1600 

1650 

1700 


66 

102 

20 

14 

37 

74 

42 

56 

19 

51 

73 

81 

Aug 

Nov 

Aug 

NOV 

117 

130 

44 

84 

88 

106 

65 

118 

64 

8S 

01 

147 

Jri 

Sep 

Jri 

Sap 

230 

290 

1 

102 

181 

260 

2 

122 

135 

232 

8 

144 

Jri 

Sap 

Jri 

Sap 

43 

88 

- 

22 

20 

72 

2 

31 

S 

58 

12 

42 

Aug 

Sap 

Aug 

Sap 

54 

66 

83 

_ 

33 

31 

- 

_ 

17 

27 

- 

- 


LONDON SPOT MARKETS 

■ CRUDE OB- FOB frar berret/Jul) +or 


1256 -008 1257 1231 38757 9,148 

1291 -091 1253 1Z55 08910 6544 

1201 +092 1208 1197 26796 1503 

1199 +095 1296 1195 4958 360 

1193 +095 - 1526 34 

1196 +095 1196 1196 729 II 

3SWB175BB 


Oubri $1632-547* -092 

Brent Bend (dated) 41690*24 -094 

Brant Bend (JU) 41892-096 -022 

W.TJ. (1pm esQ 41138-8.40* -0.4fl 

■ OB. PRODUCTS NW E p re m p t deOvety OF (tonne) 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices supptod by N M Rottuddd) 


■ GAS OIL PE ffftmsl 

Sen Dor* opm 

prim manga L>W tat Vd 

Jri 14175 4125 14850 147.7S 32567 *533 

fag 15Q75 -095 15195 14S5D 11902 92S 

Sap 1527S -095 15390 15190 7573 277 

(tat 15175 - 16690 1S495 6930 249 

far 157.75 - 15590 15695 1430 150 

Dec 15950 -025 1S950 15129 14,150 229 

TMsf 8M71 STB* 

■ NATURAL GAB NfillBC (10.000 attOn S/mnflaU 


Jn 

JU 

1278 

1183 

+5 

+4 

1280 

1185 

1275 

1180 

5*9 

932 

18 

24 

■ COTTON NYCE(S0n00tos;eerea4bri 

An 

1193 

+« 

1195 

1189 

435 

28 

Jri 

BO20 

+040 

8080 

7985 11365 332* 

Ori 

1275 

+2 

. 

. 

213 


Ori 

7785 

■081 

7780 

7880 7 8 

Jn 

1297 

. 

1297 

_ 

S3 

3 

Dec 

7685 

+0.17 

77.15 

7880 6395 771 

far 

Trial 

BH 

1328 

Ctase 

1338 

42 

ftwr 

1344 



60 

2890 

76 

Sat 

Jri 

Triri 

77 JO 
7X25 

7885 

+0.16 

+028 

+030 

7880 

7325 

78J0 

7885 27,458 4J25 
7730 3379 157 

7737 V99 S 
$1,166 832$ 


Premium Gas oftn 

Qriioa 

Heavy Fuel Oi 
Naphtha 
Jet Fuel 

AnkMApa rwanrm 


$183-184 -3 

Si 48-149 +05 

481-83 -1 

$165-157 -09 

$160-161 -OS 


Gold (Troy at) 
Ctaes 
evening 
Morning fix 
Aft e rnoon fix 
Day's High 
Day’S Low 
Previous efcne 


S pnee 
38290-38390 
382. 30-382.70 
382.60 
38290 

«» 20-38390 
381 90-38200 

38230-383.70 


Utari Oafs t^«q 

price cfaegs Ugh Lw tat 

2116 -0.019 2155 2095 11099 
2170 -O011 2190 2155 11195 
2160 -0917 2189 2155 12350 
2165 *0918 2910 2180 182B 
2950 -0018 2275 2250 10959 
2350 -0918 2360 2950 14,670 


Aog 2170 -O011 2111 

Sfa 2160 -0917 211 

Ori 2165 -091B 221 

fas 2250 -0018 29) 

Dee 2350 -0918 235 

Trial 

■ UNLEADED GASOUNE 


■ OflAMQE JUICE NYCE(15j00aiha:centrital 
Jri 5595 +085 9590 9490 1414 579 

Ssp 9770 <075 9155 97.10 1320 731 

far 9135 +070 10110 9990 1JTI 118 

Jn 10175 +490 141.78 10060 3910 197 

Itar 10175 +195 10173 10250 1.127 35 

fay 10690 +190 10690 <7 17 

Tstri 229561 1978 


1 nwth 

2 months ._ 


Steer Fix 

Spot 

3 months 
6 months 
1 year 
OoMCetns 
Krugerrand 
Maple Leaf 
New Sovereign 


3.88 8 months . 

i-rf — — v 

4.40 

NT1EX («800 US grih: cffiS gOta) 



.... — 4.05 12 months 

4-81 


Latest Oafs 



Opa 


in.irf.413 



price stain* 

Hgfe 

tow 

U 

H i 

p/troy at US ett equjv. 

Jri 

5185 +0.18 

5180 

5130 38877 13483 

35180 

53280 

fag 

51.70 +0.18 

5180 

5140 27803 

7832 

358.15 

53835 

sap 

5180 +0.13 

5145 

51.10 

12317 

2/01 

380.50 

544.40 

Ori 

49.70 -aoz 

48L70 

4880 

*362 

367 

37280 

56080 

Hue 

4880 +003 

4980 

4880 

3814 

336 

S pries 

£ sqriv. 

Dee 

5100 0.12 

538Q 

5280 

2881 

331 

387-390 

286-258 

Tew 




33364 24,184 


A very strung demand prevailed, reports the 
Tee Broken' Asso cMuu Brttftt East Africans 
advanced S to 10 pence and somrifenes more, 
while medkima were fidy firm to deerar. 
Sdectsd brigtwr Cayions were wea supported, 
(flakier aorta mm matrdy easier. Offshore tees 
met selec t ive demand. Bi ltf r te ai Africans met 
active support retd moved dearer, othsre were 
bregrier and aometl m ae eestar. Brighter Gey- 
lona were about steady but other types were 
easier where sold. Quotations: beet svafabie 
2SCpAig, nom good 185p/kg, good medkxn 
14Sp/kg, medum 118p/kg end tow rnacSum 
63piVg. The highest istoe realeod this week 
was 366p/kg tor e Rwanda pd 


VOLUME DATA 

Open toterest and Vbfeam dria mown tor 
contracts traded on COMEX. NYMEX. COT, 
NYCE. CME. CSCE and ff>6 erode Oi are one 
day ki efress. 


3B3.MM93JW 

91-84 


INDICES 

■ REUTERS fteag 18«qi=.10q 

13 June 10 Amp month >90 yw ago 
90029 18929 1946.6 16489 

■ CRB Futures (Base: 4/W56=10a| 

S June 8 Jure month ego year ego 
23288 231.67 228.81 20699 


Odd (per troy az# 
Starer (per troy 
PteSnum (per tray axj 
PstocSum (per troy ox.) 

Copper (US prodj 
Lead (us prod.) 

Tin Qtaria Lumpur) 
TnJNawYori* 

Zinc (US Prime WJ 
Cattle ffive wefgWJT 

Sheep fae wetgh9t% 

Pig* fin wrighq 
Lon. day sugar (raw) 
Lon. day sugar (wt^ 
Tate & Lyle export 
Barley (Eng. feed) 

Mein (US No3 YeSow) 
When (US Dork North) 
Rubber (JUQV 
fttober (Aug)f 
RitotW(KLRSSNo1 Jug 
Coconut OD FH05 
Prim Of P4a£ay.)§ 
Copra PWfc 
Soyabeans (US) 

Cotton CXrttook A hdox 
Wbcbops (64s Super) 


£ per tome unless otfwrwtse stared, p penca/Kg. c 
cana/to. r rtogglt/leg. m Mrissrrien cants/XB- q Aug, 
t Oet/Dse z Ju VJuL w JuL ¥ London PtiysteaL § 
OF Rotterda m . $ Brilon nrnkri does. ♦ Sheep 
(Live weVit pricmL ' Gnwme on woelL (aavbtonel 
prices. 


addition of 7.5 per cent 

In the beginning, the Indian 
Sugar & General Industry 
Brim Corporation, the indus- 
try’s trading arm, end some 
private parties were making 
imports. At a much later stage, 
at the intervention of Mr Nara- 
sfoaha Rao, the prime minister, 
government trading agencies 
Uke the State Trading Corpora- 
tion and Minerals & Metals 
Trading Corporation started 
making imp ort contracts. 

Procrastination by the gov- 
ernment about directing Its 
trading agencies to import 
sugar has given opposition par- 
ties a weapon to use against it 
Mr Kaipnath Rai, the food min- 


ister and the opposition's main 
target, caused a sudor surprise 
when be barred the Food 
poration of India from signing 
import contracts for 60Q.QQQ 
tonnes of sugar on the grounds 
that the agency lacked experi- 
ence in trading. 

Import contracts made by 
STC and MMTC are, however, 
at much higher prices than the 
offers FCI received. This is 
because STC and MMTC had 
entered the market later. 
According to commerce minis- 
try sources, India had so for 
signed import contracts for 
Ll4m tonnes of sugar, includ- 
ing $35,000 tonnes by STC and 
MMTC. 


No.8,479 Set by QUARK 



ACROSS 

l> 9 Sound at rain an tiie root 
or a number oi taps? (6H5) 

4 Tree fern replanted without 
payment (4-4) 

9 See 1 across 

10 Senior gal (no name given) 
going round female quarters 


12 Sticky sweet? (8) 

13 Stupid people - second rate 
(6) 

15 Silver kept in church enclo- 
sure (4) 

19 Spy with port, drunk, awk- 
ward to deal with (7) 

20 Dish to fell in value in a smnii 
way (7) 

21 This dag is top, we hear ( 4 ) 

25 To cany too far the deliveries 
to the party (6) 

26 M iss in a stare abroad? (8) 

28 ^ V8riyproducsd by painting 

29, 31 Violin — somehow faded 
about a pound? Nonsense! 

80 Perhaps the dock is not work- 
ing©) 

31 See 29 


DOWN 

1 A little explosion with a due 
(cryptic) for the masses (8) 

2 Instruction of one taught 
about to get behind <8) 

3 Call me up for a kind of medi- 
cine (6) 

5 Not so many losing head in 
jug? (4) 

6 Part of church leader of theol- 
ogy managed over a month 
(S) 

7 Ye) ** Wtch arfected K 

$ It goes to Change a selfish per- 
son (6) 

II Wine with fish to play a part 

14 One to eject in a troublesome 
ball (7) 

17 Expression of sympathy 
nited out (not English) (4,4) 

18 Jogged on and took heed (8) 

19 Language that is well docu- 
mented (8) 

22 The ethics of the exam in 
manuscript (6) 

23 More suitable for a gamble*? 

24 Firm fibre glass (6) 

27 Factory with no time for the 
scheme (- 1 ) 


6 SSg; 


Qf broking an, l p.N»m S llw {V-r^on’s fond 

/icw tftttfh/ he pub pair avr J onto bond. 


Sfbllkan © 


I -<e* eci 

' Oi ’• 

: P ? *“ ^ 


$ 


paters 

find 

buyers 








ir- • . 
r l£, , 

k . 


* rT-SE X . **MP--* 




'■** as u . 


JOTTER PAD 





> ?>?* 


1 » « i • 4 : r. • i, ^ l J 


FINANCIAL 


TUESDA v 


JUNE 14 1994 


1 N Ut!:!r crki. 


CROSSWORD 




Ml 

■ a i 


l ■ ii 

IB *1 

mmm i 

■ i Jb i 


LONDON STOCK EXCHANGE 


MARKET REPORT 


Renewed bond market weakness hits shares 


FT-SE<A All-Share Index 


Equity Shares Traded 

Turnover try uotune (mBbri Betuc&ig; 
b^«narttat bushes* ond cwereem turnover 


By Toay Bytand, 

UK Stock Market Editor 

£ SR? « Whtta worries 
to the US and m Britain hit securi- 
ties markets to London yestertay 
o^hadowwg the tmtwmToftte 
ete< * 0 “®. f ° r European parlia- 
which were not for out tfltoe 
with expectations. Although selKnjr 
pressure on equities was only mod- 
erate. the stock market was under- 
mined by a new round of sutwtan- 
^1 los^s to British government 
bonds, themselves hurt by falls in 
German and US bond prices 

«. At J?£» l0W P™ 14 of session 

th® F T '® E , 100 bidex was more than 
45 paints down and within 10 points 
of the 3,000 mark regained so 
recently and with such difficulty A 
minor rally was held in check by a 
sluggish opening on Wall street 


where the Dow Average put on 745 
points in UK trading hours. The 
final reading showed the FT-SE 100 
at 3.D3&3 for a drop on the day 
of 39.R 

Weakness in Goman bonds and 
in other European stock market s 
quickly halted an attempt by UK 
equities to extend Friday's advance. 
The result of UK voting in toe Euro- 
pean elections was regarded as neg- 
ative for the stock market because 
it implied further uncertainty for 
Ur John Major’s government and 
threatened to weaken its pnittinai 
resolve to resist inflation. 

Inflation worry was also rekin- 
dled by the input pricing category 
of the UK domestic producer price 
index for May. Markets reacted 
swiftly to the UK Treasury com- 
ment that the QJ) per ceot increase 
to input prices bad been “mainly" 


Aocoant DcaBns 


OpMpn Q aMa ral * »i » . 

J» 10 Jmso 


JUa 77 JP 11 

■H— > tt— rtaannge m«y tale* 


doe to oil and commodity prices. 

This reminded analysts that com- 
modity price pressures had been 
p inp oi nte d as inflation threats by 
the US Federal Reserve. Unfortu- 
nately, German bond markets 
began to extend early losses after a 
member of the US Federal Reserve 
Board referred to “slight signs” of 
inflationary pressures in the US 
economy. 

Inflation worries focused on pros- 


pects for the US consumer price sta- 
tistics, due around noon today. 
European time. Some strategists 
raised their forecasts for US CPI 
growth, which had previously been 
for a rise of around 0-3 per cent 
Concern over inflationary pres- 
sure also turned attention to other 
components of this week's heavy 
list of economic data. In Britain, 
statistics due tomorrow on retail 
prices, unemployment and indus- 
trial production coincide with data 
an average earnings, which will he 
scanned for signs of wage cost pres- 
sures; tomorrow evening, Mr Ken- 
neth Clarke, the UK chancellor of 
the exchequer, will deliver an 
important speech to the City of Lon- 
don. However, comments yesterday 
afternoon from Mr John Major, the 
UK prime minister, on UK economic 
progress had little immediate 


impact in the stock market 

The reappearance of a discount 
on the Footsie futures contract 
reinforced selling pressures on the 
blue chip stocks. In the broader 
metket the FT-SE Mid 250 Index 
dosed 12.7 off at 335 A. 

Seaq volume of 483.7m shares, 
although higher than on Friday, 
was at the low end of recent daily 
averages; the focus on the Footsie 
stocks left the non-Footsie issues to 
make up only about 52 per cent of 
the total. Friday’s Seaq turnover of 
416.4m shares was worth a respect- 
able £L26bn to retail business. 

The renewed focus on bead mar- 
kets proved a disappointment for a 
UK stock market which last week 
showed si gns of having disengaged 
itself hum the pressures suffered by 
fixed interest markets since the 
commencement of the year. 


1,550 -I. 

1.525 l-J 

130 */ 

1,475 ' — — 

K* Met 

SuaoeFTtapMa 1994 

■ Key Indicators 

bKflces and ratios 

FT-SE 100 301613 

FT-SE Mid 250 3595.B 

FT-SE- A 350 1527.6 

FT-SE-A AB-Shara 1 519.65 
FT-SE-A Aft-Share yield 3.88 

Best performing sectors 

1 Water 

2 Electricity 

3 Textiles & Apparel _ 

4 FT-SE SmaBCap ex IT 

5 FT-SE SmaBCap 



3016.3 

-39.6 

FT Ordinary Index 

2385.5 

-33 .6 

3595.8 

-12.7 

FT-SE-A Non Fins p/e 

19.41 

(19.60} 

1527.6 

-16.6 

FT-SE 1 00 Fut Jun 

3011X1 

•34.0 

1519.65 

-16^6 

10 yr GUI yield 

8.70 

(8-50) 

3^6 

(3-64) 

Long gUt/eqUlly ytd ratio; 

L27 

(8-24 ) 


Worst p er fo rmi ng sectors 

1 Tobacco 

2 Telecommunications 

3 Insurance .... : 

4 Media 

5 Electronic & Elec Eqpt 


Waters 

find 

buyers 

The utilities sectors anviu n ted 
for most of the FT-SE 100's best 
performing stocks yesterday as 
institutions focused on the sec- 
tors' above-average yields and 
dividend potential 
Water shares, which have 
been left for dead by buoyant 
recs and generator areas 
recently, were the best per- 
formers, ahead of results 
this week hum two of the sec- 


EQUITY FUTURES AND OPTIONS TRADING 


tor’s JT-SE loo constituents. 
Severn Trent, due thfg morn- 
ing, and Thames, scheduled for 
t o m o rr ow . 

Both companies are expected 
to post annual dividend 
increases of around 8 per cent 
Severn Trent was the best indi- 
vidual performer in waters, 
closing 6 ahead at 526p. 
Thames edged forward a penny 
to 48lp. 

The recs’ preliminary results 
season commences tomorrow, 
with London Electric i ty , which 
is forecast to Increase its divi- 
dend total by more than 15 per 
cent. 

Norweb, due to report on 
June 27, forged ahead 12 to 
649p and Northern, which is 


reporting on June 29, put an 
the same amount at 6 S 2 p. 

Las mo edges up 

The Enterprise Oil/Lasmo 
bid battle entered another cru- 
cial phase, with Lasmo shares 
creeping higher and those of 
Enterprise slipping back as the 
market responded to intense 
speculation in the weekend 
press that Enterprise will 
sweeten the terms ct its bid by 
the end of the week. 

Under UK Takeover Panel 
roles. Enterprise has until the 
and of this week to come up 
with a revised offer. 

One ofl sector specialist said 
no counter to the Rpt a r prfa e 


Strong US selling, technical 
trading and the weakness In 
other European markets 
together brought a sharp 
decline to stock Index futures, 


writes Joei Klb& m. 

In its last week of trading, 
the June contract on the 
FT-SE 100 opened at 3,04a 
However, this was at a 16- 


■ FT-SE IPO INDEX FUTURES (LtfTE) £25 pvfuU Index port 



Open 

Sett price 

Chsige 

Htfi 

Low 

EsL voi 

Opan bri. 

Jan 

3043.0 

3011X1 

-34.0 

3045X1 

2901.fi 

18722 

3S320 

Sep 

3052.0 

30205 

-3SLO 

3054.0 

3006.0 

*297 

29709 

dec 


3033X1 

-34X) 



0 

752 

■ FT-SE MD 290 INDEX FUn)REB(UFFq CIO per fid fexkKpoM 



Jun 

3585.0 

3580X3 

-19X1 

3586X1 

3572X1 

5 

2758 

S«*j 

3585X1 

3587X1 

-19X1 

3585X1 

3585X1 

3 

2888 


■ FT-SE «D 250 INDEX FUTURES (OnAX) ElO per ftfl intfcx poht ■ 

JUi - 3580.0 771 

M open merest flpaae are far pnafare day. t Bret Mum store. 

■ FT-SE 100 WOEX OPTION (IJFFQ p301 8} CIO par fril hdrat point 

2880 2000 2950 3000 3060 3100 3160 3200 

CFCPCPCPCPCPCPCP 
in fflSfe 1 lift 2 802 6 as T7 7 4tfj 1h 9ft H h 194% 

U 180 15^ 187*2 23 lOOb 38 » 55>a « 55*2 14 154 7 198b 

A« 200 31*2 HM 45 129 59 10 80>j 72 1M 52 194 38ij IBSlj 23h 200 

Sep 210 4fi«? 182*2 S3h 140 7&i 119 96^ ft 720*? W « 182 00 718*2 

fleet 220*2 9* MS* 134 - 114*2 '164 731s 246 

CM ■ 4.410 Puts U15 

■ BUBO STYLE TT-3E IPO IHDeXOPnOH(LlFFE> CIO par Ml Index point 

2325 2075 2025 2375 3025 3075 3125 3175 

in 100 1 OTh \h Wa 2h 44>2 9*i 12** 28*2 3»* 1 114 >2 10* 

id 200 IQ 167*2 17 IttSaZPz 84*2 43*2 Wh SS*z 38 94^ 21 123*2 12 189*2 

Aug OBh2Sh 140% 51*2 87 91 46 148 

Sap iXflj 37 162*2 65 10*2 106 80** 180*2 • 

Decf 270*2 68 201*2 97*2 144*2136*2 - «*2 1B9 

Qria 210 Baa X252 * (Weriyfeg tote mm. tamkaa Moan wt bretf on ariBaerec prim 
t Leap ttM apty ROM. 

■ Elmo STVI£ FT-SE MP 850 WOEXOPIXW ^ MOQ £10 per fij Indie pow 

3500 3550 3000 3850 3700 3750 3800 3950 

iK B1*j 2 40*4 10*3 UA* W 
Ctf« 0 mb 0 Sndment trices end ****** ere ntaa S430pn. 


FT - SE Actuaries Share Indices 


point discount to cash, and 
together with active setting by 
a leading US broker, June feu 
steeply, pulling the underlying 
cash market lower. 

Attempts at a raHy petered 
out as dealers reflected on 
the poor performance In 
European bond markets and 
carried out technical trading 
ahead of the contract's expiry 
on Friday. 

The tentative stmt on Wad 
Street led to a further fait In 
the June contract and it 
touched a day’s low of 2,991 
at around 3pm when it was 
trading at a 24-point discount 
to cash. 

Bargain hunting late in the 
session helped the contract 
steady and it dosed at 3,011. 
down 34 from its previous 
finish and at a 4-point dfecourrt 
to cash. Volume, at 18,722 
lots, was healthy. 

Turnover In traded options 
was modest with a mere 
22,252 contracts dealt against 
Friday’s 38,042. The FT-SE 
100 option saw business of 
12,190 lots and the Euro 
FT-SE option 2,562 contracts. 
Tarmac was the most active 
stock option at 1.025 lots 
traded, followed by National 
Power at 901 contracts. 


! he UK Senes 


Jut 13 chgjj* Jw» 10 jun 9 Jim 8 


FT-SE too 3016 

FT-SE MM 350 3695 

FT-SE Mid 250 ex fci* Tmstt 3803 

FT-SE-A 350 1527 

FT-SE SmaBCap 1«*-‘ 

FT-SE SmaBCap m Inv Trusts 183BJ 

FT-SE-A AUrSHARE 1S1W 

■ FT-SE Actuaries All-Share 


OH. Bmt 
yMd% yttU% 

I 4,10 &S9 


-rja 3055L9 SQ2&8 30383 28S5_5 4,10 6^8 

-0-4 36083 3690S 38003 32102 148 5-71 

-03 3616.5 3805.9 3607.1 3229-6 SjO 6.18 

-1.1 154*2 163ZS ieaw 143841 3£5 &S1 

-4X1 1883.17 1654.17 186AM 1888.78 2^8 3£B 

— 1839.18 184036 184020 154&29 3.14 434 
-1-0 1536X11 152467 1528X14 142480 338 M2 


10 MWeRAL EXTRACTIONftS} 

12 Baracttwa MduOriast*) 

15 04, imegratadp) 

16 04 ErotaaTfan 5 Pradtfl} 

20 GEN MANUFACTUREBSC283B 

21 BuWno * CorwOuBdonPl) 

22 BuMng Mate A Mo«h901) 

23 Chemicatapl) 

24 DKnBrsifisd 

25 Boctoortc & Sect &m>M 

26 Englnaerinscn) 

27 Enfl*w«rin9. v«hfclesCi2| 

28 Printing. PaP* - 4 

29 Ta<Utes & ApparalCq 

30 CONSUMER GOODSpq 

31 Bfweries(i7) 

32 Spfcto. Wlnas 5 C*dara(UQ 

33 RxW Monutoaurera(23) 

34 HousMwW Gooda<l3) 

36 HoiHrt CorapO) 

37 PharmacouBcaWHJ 

38 Tuboocofll 

40 SERV1CES(220) 

41 DWribuwrspiJ 

42 lotaixr & Hotels^ 

43 ModtoPS} 

44 Ret#«»s. F°od(17) 

45 Retailors, Genera«44) 

48 Support ServtoasW 
SB Transporilia 

SI Ottwf Setvicos & — 

60 imUHESPSI 
62 SecWenyyl T) 

6J Gas OtePi ftu0on Pi 

66 TeMcamrmrteanonsP) 

tA Wm nrfl 31 

M wON-FINA NCIAtatBSat 

70 BNANOAtSlUto 

71 BonWllO) 

73 Lnsuranco(in 

74 Lila teswanceiW 

75 Monawrt 0on, ^!J 
77 Olhet F<MncuK?4) 

79 PrOOOrtvff3} — 

an MVESTMBrT^Tmg Tggg 

89 FT-SE-A ALL-SHARE^*) 

■ Hourly moveinont* 

Qp«n ^ 


Yaar 

Jm 13 eftgatt dun 10 An 8 Jun 8 ago 

268030 -02 283533 258419 258157 22334X1 

3872.76 -0-6 3801-99 3852.11 385403 3O73S0 

2587.13 -02 2571.07 291408 2512j68 216&90 

1919S2 -ftl 1922.43 188333 1B8QS2 1971-30 

187037 -OS 1985^9 188983 1987.75 1801 JO 

1197.47 -04 120040 120109 120044 1067X20 

192022 -1.1 19*0-99 1929X38 104070 18B2J0 

242050 -1.1 2458.722443/48 2448S7 222050 

1BB1JJ4 -0.7 167&57 187402 1961*4 1853.10 

2013.80 -1* 204022 2038.43 204084 206330 

1828-22 -OS 1845*8 1841.54 188083 1569*0 

231003 -04 231S202310,CC 223337 179420 

2732X6 -IS 2781.18 278054 2781*7 2328*0 

175006 *03175023173083 1723.44178480 

2515*8 -1.4 2853.00 283086 2635*0 270070 

2162*2 -1* 2168.83 2185.12 218414 1888*0 

2819.96 -1*2861*62847*5 2860362832*0 

218083 -0.7 2206.60 2217X16 2222*6 228030 

2451*7 -0* 246407 245465 2473.70 2283*0 

1668*0 -02 7881*1 1688*4 1887*8 1887*0 

274086 -1* 2781.80 2743*7 270555 288400 

3515.03 -OP 3824-08 361 1 *0 3688*8 3743.70 

1855*5 -12 167822 1967*2 1867*1 1788*0 

278044 -OS 278M7 2808*8 2833*1 2858.10 

213491 -07215012 2128*7 211460181070 

2858*2 -1.8 9006*7 3021*1 3031*1 2345.10 

1826*8 -1* 1649*5 1811.57 1908.81 1984*0 

188321 -1.1 1701*4 1681*7 1867.17 1488X0 

157005 -05 1585*3 168415 180447 1500.10 

231076 -1*2354472344*52357*12082*0 

119019 -05 1185*5 1198*6 116067 1^8.10 

2240*1 -1 * 2263*4 2224X22 2228*5 212040 

217451 +04 2108*7 2127*6 211048 177220 

1021*6 -1* 195010 185477 184074 106040 

1946*0 -2* 1981*0 1968*3 188088 198080 

^08 172043 1717-23 1703-14 1SZ&20 
164404 -1* 166073 1646,45 18*043 1S4424 

2131.10 -1.1 2154*52157*62175*3201090 

275055 -i.i zm.nzm.Ti ssiAsawauiD 

120009 -2.0 1230*0 123078 1267.04 134020 

930030 -1.02322*1 2315*42844*3256060 

281029 -07 2886.70 282074 2B4402 2643.00 

1B22.93 -0-1 1825X17 1625*2 ISttSS f 490*0 

1 530,09 -07 1639*6 1566*9 1537.72135030 

-OA 27S3.13 278044 2762*9 233000 
1618.85 -1* 1535.01 162457 758004 142450 


an. Earn 
y*XS% 

056 448 

3*3 5*2 

008 461 

3*0 129 


P/E Xda4 1M 
>att> yM Return 

17*0 43*3 712020 
21*4 4403 132048 
19*6 44*0 1321*6 
18*8 2033 1188*8 
32*4 2087 143043 
28*8 21.48 1413*8 
1086 22.77 118076 

P/E XO at*. Total 
mtta yid Ramm 

2014 37*6 104028 
24*4 4038 1066*5 
2033 4048 1041.76 

27.43 28*9 89021 
31.76 15*2 929*0 
31.03 3023 88521 
3228 42*2 106046 
2059 3048 991.14 
18J93 13*6 96082 
2092 21*2 103043 
61*1 32*8 1105*5 
22*7 37*8 107425 

_a*r_2M8_9ggs, 

15.15 50*8 889.45 
1523 56.16 961.74 

17.17 5078 939*0 
1420 42.75 912*9 
18*2 4074 873*8 
71*4 19*0 957.77 

14.43 4720 B80l52 
_1128jm^_7gJ3. 

18*2 23XB 95021 
18*1 35X74 953*7 
25*7 1942 1038*3 
23.46 35 .S 102070 
13*7 2018 981*3 
19.10 2439 893*1 
2024 13.75 85021 
21*8 15.14 884*7 

j s ast.affl.jB e a. 

1460 20*2 844*0 
1049 2467 B82S4 
t 53.43 877*4 
15*4 009 60036 

013 18.72 _64g*B_ 

13*8 4473 635.13 
1031 50*7 81039 
8*5 28.44 81050 
15*2 66*6 873*5 
084 4445 841.04 

16.17 2097 091.60 
3016 23*0 887*0 
53*9 27,42 918*5 
1068 22J7 1180.76 


FT-SE 1M 
FT-SE MW 250 

FT-SE-A 350 


3053* 3049* 

3814* 3813* 

1546-1 15«-° 


11*0 12*0 13*0 1400 16*0 16.10 WtfVtaty ixm/day 

3022.1 3024* 3021* 3021* 3015* 3015* 30502 30103 

3802* 3601* 8588* 3688* 3594* 3585* 36148 3®3* 

15306 1531* 15302 16301 1527* 1527.4 18401 1S2S.0 


TAM> M FT-SE 

, _ aM industry baskets 

■ FT-SE Act ^^ leS pjo m jo 11*0 Igoo ia *0 wo IMP 16 l 10 CXxb Pmtooa Ctany. 

Anlt '.7,,q 11&2 1135* 1136* 1135* 1131* 11303 11303 11404 -7.1 

Bldg 6 Cnstro. HS« S 5 2741.5 27440 27«-7 2741.7 2731 A 27».1 27^* 065* -42.1 

Sj—ccuUds 2770.5 27»+ J7205 17208 1723* 1727.1 17204 1718.1 +103 

i7£&0 U25.4 17|* Z78&8 2785* 27W.7 2788* 27902 27903 2821* -31.6 

Banks 2824.4 ^ 

CMS Mm N puwdwi h 8<ta4v Mm. IM of coMteum •Memeocn The RmneM t«n 
ewmaa MAB mMwSN**— -«*««. flag 

222 ?Sn!aE 104 W FT-SE Mf 2Sa FT-SE MUN 3SJ «l «• FT-SE team 


bid was likely to emerge until 
Enterprise had made a final 
Hiri- “and it is by no TriftAnn 
clear that another potential 
bidder is sniffing around, 
despite the heavy activity to 
the market )atp last week,” the 
analyst said. 

Enterprise shares fell 11 to 
399p while Lasmo moved up 5'A 
to 147%p. Turnover in Lasmo 
was 4.7m shares. 

Barclays wanted 

The strongest performance 
in toe UK banking sector came 
from Barclays, which benefited 
from bouts of switching from a 
number of other UK frarifcc hut 
notably from National West- 


■ U^or Stocks Yesterday 


VoL CtoHnp Dtye 
OOOt price L h» M « 


AflOA Ortnerf 4*00 S6 -4, 

AawvNmamrt 2.100 *37 -Vi 

AJbert Ftes 130 Si 

AOerMMMt G» SH 4 

AngtaWMar 1.400 503 +1 

Atvcm ISO 3«a -2 

ArgMOwpit Z500 2« -1^ 

ArteVMggteW- 1.100 273 S 

Ahqc. Bte Foadet MS 6S2 -fl 

Amoc. ft*. Ports 1*00 ZED -1 

BMf 8SZ 933 -15 

BATHfM 1.700 419 -13 

BET 4,100 121^ -1? 

BJCC SB* 400 -6 

sect «4S 725 -8 

BPt a. 700 391 *2 

BPS Ml 2,103 300 *3 

BTt 5^00 37JF2 -11 

BTffVPK* 1JW0 252? -4h 

Etmr 3*00 867 -7 

Bank Scoomrit 2.100 isi^ -ah 




srv 

HuBOltM 




4.700 34S *3 

1.700 SOS -* 

1*00 2K -4 

447 384 -3 

1.400 SSI -4 

932 434 -13 

480 459 -4 

2200 380 -0 

4900 289 -4>] 

1J00 33» -2 

3^00 135V -k 

414 IM 

421 882 *1 

1.700 S9 *h 

1700 437 -4 


Brian G»*r BAOC 289 -4l] 

BrittriUntl IJOO 339 -2 

Brt*fiS«aait 1700 135^ -k 

enrol 414 IM 

Bnnmhcamrt- 421 882 *1 

&TOO . 1.700 S3 **2 

C4MlWrit ' 2.700 437 -4 

Cabuy&kiapgMt 1.600 M4>2 -7>i 

Cme* &oup 9 292 -1 

Camtort- 1.100 324 -1 

Cwtcn Conraat 738 ass -« 

Coo»Viy«t 1^00 232 *1 «a 

Com UMorif 2SB3 508 -25 

Ctataon 1^0 257 -4 

CQURk&tet 422 513 -4hi 

0*e*t , 319 417 -1 

Da La fk*rt 212 87S -14 

Dtao* IJCO 1*7 -4 

Eaucm Bat 304 *14 « 

EMMamdSKt mm* 
EngCHmaaya 1XW 36B -4 

GnmpnsaCKt 1/00 399 -11 

bnund Unis 354 324 -18 

FN 1500 181 -1 

Racna 2JD0 148 

fcreai8CB4.LT. 603 139*2 -1*2 

fafif 1300 234 4 

Oan. AcckttKt ^^CO 848 -16 

G«><**fSr*a.t 5J0O *01 -«*2 

GUxot 2.700 S4»l 2 -11 

Oymred 2«6 3S6 

a»nad»t ^ A200 523 -2 

arrfl UMt 2400 418 -8 

OUBt 12*0 0 580 -IB 

QFEt 2S00 174 -4 

CRN 7W 5P7 -S 

OJrirmat 2500 *7tHa - 8*2 

HSBC (75p *hsjt 2100 691 -15 

Hn m ua n 113 S40 -6 

Hnolt MOO 251 4*1 

Mmm CrodlaM 648 174 .1 

Hu 96 291 

FSdDwn 538 168 -C 

M 389 316 

at ^ 1/300 799 -13 

Inehanat 630 473 -2 

Joftmon Mumty 350 552 -4 

KfeioOmrt 009 517 -4 

KMiSfere 706 574 -a 

Uobrewt 5SOO 161 +2 

Land SacortdmT M Sfi 4 

Laporta ^ SB 749 -1 

Legal & Sanaoit IXJOO 436 -1 

JUD)«tiAt*ar 912 350 -3 

Uoyda amt 2100 578 *2 

LASMO 4,700 747*7 

London Dact. 590 590 47 


1.200 IBS 
735 425 


UOfch Amv 912 

isbP ss <* 

London DacL 590 590 47 

Umfto sjsoo 131*2 -Ih 

UMI 1^00 IBS -1 

MStCt 735 425 -3 

UR 389 IM < 

ManwaO 312 718 4 # 

«*»aan«cert -uco 409 -i'j 

Mtfred* &bo. 932 BOO f? 

Mocrteoit (Vltey 2 JD 0 128 *1 

met 2300 216 46 

MMW Bankt 2100 486 

NdaUPowt 1^00 434 41 

Nad ^ 4.700 246*1 -1*7 

Ncrito V4e»t Wattrt 1A0O 487 46 

Nxdtam Baet. 41* 662 HZ 

Northern FOodaft 98 211 6 

Nor-ab 170 646 412 

Paaacnt 2W «16 -12 

P60t 999 838 -14 

PWnflCon 022 177 -1 

PnwOant 2700 4*4 -4 

PnxSatmtf 5X300 244 -4 

PUCt 344 889 -71 

RTZt 2400 SS3 -U] 

RaeU 796 242 -2 

M Oro-t ^ 991 3SZ -S 

Padtt SOdmlt 878 565 -S 

fcetandt OSS SOI -8 

Raad HLt 296 >11 -6 

fcnoldt 1X100 214 -3 

neuaref 2400 4*7 -IS 

RobRoyeat 1D JOO IBS 

JVBHBDdaandt B» «7 -7 

tauranc^- 676 348 -6 

smabuyt 1100 347 *6 

SdnKria 16 1213 -12 

scomm * Kew.f sia -a 

Sex*. Hydro-Baa. 351 344 -2 

Sansi powert MOO 356 

Sent 0300 121 -A 

3«Sg*c* 1 A 00 178 -e 

33 s 342 *6 

SavetiTrartt 1X100 S £8 * 

v s i 

SScxxX) &to JT » 

srtmrwxt) a . 1*00 4 e -s 

•insn&Naona-rt Sjooo -ib 

BMaBeecnvnf ^ *JBOO 398 -3? 

SaM BWMl Uta-t 1.400 356 -*h 

SrMm Inte. , 3DD +1 

Sotpiem Bactf lXffl 5K 8 

SmMHMMBea. 4S 434 

BoutiVMWmr 306 6T1 -I 

SortiWaat-SacL 1«S 820 ■» 

tatanwar , 1,000 531 « 

SWdadtawdt 17X100 286 -8 

Soxehcxme • 3E M -3 

SwAAerwt AOW .819 42 

TUI 1,700 282 «1 

H Oraupt 684 360 -13 

TBCt MOO 220 -5 


SMabuyt 3.100 

Sdrtdea 16 

Sccahti * K8«.t 474 

S£Xt Hydro-Baa 251 

San|h Powerf i-ioo 

12 ^ ^ 

SawraTwdt 1A00 

ssr*”* 

StomE=ia J7 

Soph |W>U A . 1*00 

ane«,Na(mart sjooo 

SM0Ba«e»mt ^ 4X00 

SaM On a U ar n UU-t 1.400 


SaAVUWM 
Saudi Waat Sett 


SmAAmrt 

TUI j 

TJQreuPt 

TSef 

Tjonaot 

lUaklata 

BwfcrHWiw 

Taa«t 

Thame* W*arf 

UmBft 

Twrtartrt 1 

TMUaarHms 

Uaoeai 

tMavorf 

UnkadBteopat 

Utd. Nnrepopm 

ySSyg art 

HWeawr 

WMaiWatar 


IB -3*J 
273 408 -1 

3E3 !3S *9 

&200 294 -8*2 

1*50 4*1 tl 

1X300 1086 -19 

2^00 W 1 4*9 

1XXI0 86 -a 

549 302 -10 

1*00 ffflJO -4 

moo aio -a 

289 6K -10 

1,700 see *3 

814 729 -11 

1XK30 599 -0*2 

292 807 44 

180 8B2 -1 

492 834. -6 

1600 333 42 

996 16S -2 

181 1 SB -a 

596 7SS -7 


wnmndgat i«o 393 42 

iWSaCormi 996 16S -2 

Wmpay 181 199 -a 

WaBfarf 599 798 -7 

Yortahfca B*a 1X00 598 44 

VonalNa MX ter S75 4*4 *f 

Zanecaf «ae sba -12 

Baaedenndnawkmlaraaattdenalnalor 
■ucurtBaf dee* tfw^l « SB4Q tynn 
ye gelay an* 43^0. Tiude* a> ana n M wH * 
more ■» lamed gun f MfcUae m FM£ 
WindacanaaniM 


minster. The latter dipped to 
453p, mainly reflecting the 
switching, but rallied to end 
unchanged at 459p. 

Barclays, however, was well 
bid all day and settled 3 higher 
at 549 p after good turnover of 
4.7m shares. Sentiment was 
also driven by Mr Martin Tay- 
lor, Barclays’ chief executive 
who, while on a trip to Japan, 
delivered a bullish mejuag e cm 
the hank’s current and fixture 
performance. He said the 
bank's profitability was recov- 
ering strongly. 

Standard Chartered, the 
FT-SE 100's best performer last 
week and last month, following 
a series of broker buy recom- 
mendations HTiri a forthcoming 
series of presentations to US 
institutions, attracted a minor 
finny of profit-taking, closing 9 
off at 266p with 3m shares 
traded. Two big trades to Stan- 
dard shares at the close, a 
block of 9m and another of 
5-2m shares, equivalent to 6 
per cent of the company’s 
issued capital, traded at 245p 
and were thought to have been 
bed and breakfast, or tax- 
related deals. 

SG Warburg was a notable 
weak spot in the merchant 
banking sector, sliding 11 to 
729p, with the market still ner- 
vous about the bank’s expo- 
sure to tog swings in bonds 
and equities across Europe. 

In a recent note, Robert 
Fleming Secu rities said " unless 
market sentiment turns dra- 
matically, the potential down- 
side to the Warburg share 
price is still substantial." 

The broker’s merchant banks 
analyst Mr Rupert Fleming 


NEW HIGHS AND 
LOWS FOR 1994 

mwhnhsw). 

BANK* (1) Toyo Ttt. & Brtq. UVGRSina> 
mm* (i) Artobean aecTmc * B£CT 
ECRJP (a Fifau UJtMMtt Etectric. NEC. 
Toartfco. EMOKtEEKMQ m Koto & 08 J, OWL 
MMCUESfOBaBtaacL EXHMCnVEiNDBM 
HEALTH CARE (1} Bbot, 440USSH0L0 
00008 p) (Mama & Unto, MVESTMBNT 
TR1ARS W MBNA 0 Ottart) Racta Matt) 
FMfcJ. (XL EXPLORATION * PROD O) Aren 
Enaw. SUPPORT SOW* (1) HsMN VMmg. 
THC1WS » APPAREL (9 Tony. Wmun, 
AMERICANS (I) 

NEW LOWS (I40|. 

CULT* n OTHER RXED INTEREST (ID) 
■4MKS (8 ANZ. NHL M*, BRBMRE* (I) 
fcMen. OULOMB 6 CNSTWI N BUMy. 
JkntB, K4te, Tjytcr Mxxnw. BUXi MAILS* 
HCKTS p) StaMeW Ina, Tlian. MSIMBUTORB 
(Q tatAcapt, MV8RSHGO INDLS n BBb/ LU, 
PMBte Durtta Union. BfCrRNB A B£CT 
SOUP CQ [Mb Baa. Jsimaan Eka. 
OKMHEBOm n ftonwgrew lm». HM Eng. 
Hurek(L RNNcorv VSB- E7«4 VCHKLE8 (1) 
DWiNr-B«H, EXTRACTIVE INDS M FOOO 
MAMJF n Amoc. Bi*. feoM. Cadbuiy 
SdMWfM. UNnm*. MS DJ8TWBUIXH4 OJ 
Cater. HEALTH CARE (1J NMsr-BNA 
HOUSeHOLO QOOOS (1) Recttt 5 Ootnan, 
UMURAMCE (9) CDRBmN UWon. HCQ Lteyd* 
bw Tn. Wjamtan. Stevta. WSte Conoon. 
WVB3T14EHT TRUSTS P3) MVEBTUBCT 
COMMNE8 *9 LBSUR8 5 HOTELS |7J 


MBNA (5) Hteringwi Kteride. Mom OFun*, 
PilUNl 7V. StheTV. TrWty. Oft, MTEUUTED 
(l> MoM, OTHBI RNAHOAL n» ««>«» 

■ms. otmr gbws a mmm m cm* 

Rvm PW7IM, PAPH4 * MCK4 (0 fcpok. 
PnOPERTY W mu* FOOD M Balm 
Bros, CMoiTa, Dairy Pam. Shoprtt*. 
RETAILERS, OSHBVU. (i) DFS Rmtn. LH 

Anoint Scflwbya cnm k tram. WINEB 8 
cnagw (i) Grend ucl, support serve r 
CMW. Chubo sacuty. Hakim Plswcttea 
Macro 4, WnMty, TEXTILES & APPAJfflL ft 
Bril Mcta5, CbcUb UR. llenayudBa. U«*» 

WSe. HfctiartM. StnCsr, TRANSPORT (1) Omen, 
AMWBCAN8 W CUMDMNf M 

said “Warburg’s long term 
trend of greater reliance on 
proprietary trading and 
marketmaking has implica- 
tions for valuation; we believe 
Warburg should be de-ratad 
towards premium US invest- 
ment house ratings of eight 
times historic earnings, indic- 


ating a price of about 605p. n 

An increase to the dividend 
and a positive results meeting 
helped traders discount the 2.4 
per cent decline to profits from 
distribution group Christian 
Salvesen. The shares finned 8 
to 255p. 

Shares in channel tunnel 
operator Eurotunnel gave up 
IS to 324p on rumours that sev- 
eral institutional investors 
were unwilling to take on the 
stock from the group's recent 
£816m rights issue. One market 
watcher said: “At this stage, it 
looks like SG Warburg (Euro- 
tunnel’s broker) will be left 
holding a large chunk of the 
issue." The offer closes on 
June 22. 

Sentiment in the stock was 
further damaged by news of a 
breakdown of a test train to 
the tunnel last Saturday, due 
to an electrical short circuit. 

Swiss Bank Corporation 
issued 5m call warrants in a 
basket of pharmaceutical 
stocks. The basket represents 
three Glaxo, down 11 to 549%p, 
one Wellcome, down 5'A to 
589p, one Zeneca, down 12 to 
694p, and two SmithKUne Bee- 
cham, down 3% to 398p. Swiss 
Bank said the underperform- 
ance of the sector in the past 
year, declining about 12 per 
cent against the FT-SE all- 
share, made it attractive. 

Conglomerate Williams 
Holdings hardened 3 to 353p, in 
trade of i-Sm, with Kletowort 
Benson reported to have rec- 
ommended the stock. 

Magazine publisher EMAP 
dropped 2 to 407p. after con- 
firming it was in discussions 
with radio group Trans World 


Communications for a recom- 
mended Offer. Businessman Mr 
Owen Oyston, who owns 22 per 
cent of Trans World, has 
agreed to sell at I81p-a-share, a 
price which was well received 
by analysts. 

Cbiltern Hadio, which last 
week became the subject of an 
agreed bid of 242p-a-share from 
Luxembourg broadcaster CLT, 
rose 3 to 243p. 

Rationalisation plans by Dix- 
ons Involving the Closure of 100 
Currys stores were confirmed 
by the group. Although mooted 
in the market for some time, 
the sews nevertheless hit the 
shares which fell 6 to 187p. 

Among food manufacturers, 
yield considerations held up 
Hazlewood Foods, ahead 4 at 
I3lp, and limited the damage 
to Dalgety, off a penny at 417p. 

Details of the well-flagged 
rights issue from Euro Disney 
were finally announced; the 
7 -for -2 issue priced at FFr10 
aims to raise FFr5^bn. Euro 
Disney shares slumped 20 on 
the news, but rallied to close 
just 3 off at 380p. 

Ladbroke shares were in 
demand, a combination of a 
rebound after recent weakness 
and featuring as part of a large 
programme trade. The group 
also announced the death of 
ffnanw diriwtnr and vice chair- 
man Mr Jerry OHfahony. The 
shares added 2 to ISlp with 
turnover of 5m. 

MARKET REPORTERS: 

Stave Thompson, 

Christopher Price, 

Clare Gascoigne, Joel KBmzo. 

■ Other statistics. Page 30 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


OpBon 


Jri 

Oct Jbp , Jif 

Oct Jan 

Optkte 


Aug He* Fab Aug Nou Fab 

Ma44)0H 

540 38% SIM - 8 IBM - 

Hanaon 

240 17M 

22 a 

ft 1 13 

rwi 

saa 

11 

26-32 

41 - 

(750) 

260 

SM 

12 15M 

14 ism a 

Araje 

240 

9M IBM 2SM TZH 

I7 22M 

Lasmo 

134 

20 

24 - 

4h 8M - 

r»s) 

2B0 

8 

11 IBM Z7M 30M 35 

ri47 ) 

154 

7M 12M - 

14 17M - 

ASOA 

50 

8 

9 11 IM 

4 4M 

t (ft ^p^ 

180 

14 

a 24 

7 14M 17M 

r») 

60 

2 

4M 6 6 

9H 10M 

H84) 

200 

5M 

12 ISM 19H 27M 29M 


BritAtaMp 38) 31 41 48 E 14 19 
C389 ) 390 12 205 30 ZM 28 3314 

SMOKtaX 3»2JH a«K)}H 22 30 

(-397 ) 420 Ttt 1B14 Zni 29*4014 47 

Boas 500 41 S3M M* 5H 13 18S4 
("531 J SO im as « Z7H 3SH 4SH 

BP 390 IBM 21 8414 12 21 86H 

fWIJ 420 544 15H 22 3254 36V4 44 
BM*SM 130 10 15 18 S 8H 10b 
(138 ) 140 5 10 ISM 10 1314 ISM 

Baas S00 26M 38M <7M 14M 24 38 
rSOS) 650 *14 I8 2SM 49 54M 88 

QMIttl <25 21 - - 14 - - 

f 438 J 450 914 - — 2BM - - 

QoMatrids 500 28 44 S3M 11 21 28M 
(■512 ) SO 8M20M29M4ZM SO S6M 
Cam Wan 600 27 JS 44M 14 25M 31 
fSIO | 550 t MM 22M 46 SSM 60M 

a 757 SIM 73 BTH CM 22 304 

r798) 800 28M 43M SBM 24M 44M 54 

Cngteiw 500 32M 44M 5EM 10M 23 30 
fSI7 J 550 929M 33 40M 4714 5714 

tend Sear 600 3SM SI 89M 5M IS 17 
<"K7 ) 650 fl 24 3054 20M 38 4IM 

lists 8 S teO 27 38 44M 414 1 DM 14 
r400 ) 420 944 Z1 IBM 18 23M 28 

MMBt 420 4614 5ZH STM 4M tTM 15M 
r*58> 480 18 27M38M 16 SM 33 

SaUny 380 35 4S STM 5 12H IB 
r386 1 MO KM 27 34 ISM 25K 31M 
SMTm 700 2ZM 38 « 18 29M 35 
("703 | 780 4M 1G Z3H 49M 82 66 

Stratum 200 17 22M 2BM 4H 814 12H 
(*213 ) 220 5M 12 IBM 15W 1914 23 


(-29* ) 

RT2 

T 8 K) 

tafend 

PSM) 

nq«9 htca 
(V51 J 
TesDB 
r224) 


rs<a i 

BhM Ctafc 
r2B5» 


SamlUH 

T417) 


78 11 - - ZM - - 

88 5H - - 6 - - 

1000 28* 55 IBM Z4 35 43H 
1IB0 9M 3154 47M 58V4 66 71 
BSO 65 87 77 5 17M 24 

TOO 21 36 4SZZM38M46K 
J>*B MW ftt Acg Hw »=e* 
380 34M 68 81M 7 14 20M 

420 t6 39 38 21 28 34M 
180 12 IBM 22 9 13M 15 

140 B 11 14 2314 27 28 
300 2BM 37 48M 5 12* 16 

33011M2IMSH 19 29 31* 
Jm Stp Om Xua Sap Ok 

140 giflttZZK 1 8 ISM 

180 1 9 13M 14 21 25M 


Optho Aug Ew fab Auq Mw fttl 

Brit An 420 S3M70MM11Z734H 
1*457 } 480 29 49 62 28 45* 54 

BAT Ms 380 38M 4B 54 8M15M1BM 
r«19) 420 IBM 2BM 37V. 23 30 33 

SIR SB019M 28 39 11M 1B23M 

(*387) 390 6M14H 22 SBM 37 40V4 

M Trinn 360 IBM 25 2BM 13 16 M 2554 
("370 1 390 512*6 304 3844 

CadnyM 4U3SM44K51M SM 13 16 
(*445 | 480 12 23 30M 24 33M 35H 

EntonBK 600 32 47 59 25 te 48 
rBl4 ) 8S011M2SM 38 B170M77M 

SSana 460 24M 35M 44M 10M 19 23H 
("470 J 600 *M tW«M3«4Z»47)t 
ffic 300 9 waou 15 19 23 

(-301 ) 330 2 9 9M40M41M43M 


f 483 ) 
Scot Mmar 
1*357) 


000 E BS 72M 11 28 34 

650 22 38 4734 33 56MS1M 
ISO 20» 27 29 4 7M 11 

180 8 16 18 14 17 21 

280 25 31H 39M 5M 12M 14 
30012M20M 28 13 22M 24 
890 38 SIM 78 26M46M S3 
900 IBM BBM 86 57 75 81 
500 25 89 47 19 33M 38M 
550 7 19 2EM 54M 87M 71 

240 22 29 2S 7 16 IBM 
200 11 19 26 17 3BM Z7 
220 14 21 24 8 14 17 

240 SM 12 16 19 26 2B 
500 2SM4SHBSM 20 32 41 
550 »« a 55 53 70 
325 36 41 M - 3M 9 - 

354 18 24 - 14 22 - 

■M Qet Jib Jl Oct Jan 

900 43 64M » ISM Z7M 38M 
9S0 19M 38B0M43M 54 82 
460 23 32 3SM13M 23 30 
600 IM 4M 7M 91 91 94 
Jua Sap Dee Jen Sap Dec 
420 BM 27 36M 2M 18M 23 
460 1 10M 19 36 43M 48M 

30 2 SM 8M 1 3 4 

35 1 3 4 4M 5M 7 

GOO 51STM7ZM 1 11 18 
550 5 29M43M 8 31 H 37 

290 7M 24 20M 2 14M2DM 

300 1 14M21M 17 28 31M 

280 11M 23M 27 IM 9 IBM 
30 0 1 IZJ* MM 13 30 28 

1B0 8 17M 22H 1 13 15M 

200 1 8 14 15 25 27M 

180 7 1SM2BM 2 7M 9 

180 1 7M11M 16 19 21 

130 3M 13 17 2 12 14M 

140 1 BM 13 10 18 20M 

420 IBM SB44H IM 17 22M 
460 1 17 2SK 29 38» 44M 

330 30 3SH 43M I 12M ISM 
360 419M28M 5H 26 29 

120 3 9M 12 2 7M BM 

130 1 6 7W TOM 13 15M 

22D1SM26M 29 1 8 )} 

240 1H IS 18M 9 17M22M 

135 22 - - 1 - - 
155 3 - - 3 - - 

1OS04OM 71 9«M JM47M63M 
1100 6 4B GB1BM75M90M 

200 22 27 81M 1 6 8 

220 S M am 3 15 18 

220 3 14 18 3 14H 18 

240 1 6M11M21M a 31 

650 42 8EM 77 1 21M SOM 

800 3K SBM 61 16 44MS5M 
M OtiL Jm Ji oo J» 


RISES AND FALLS YESTERDAY 

f 

British Fund* 

Other Rxed interest , 

Mnsral Extraction 

Qmm Manutochtm 

Consumer Goods 

Services ... ... 

UWtte 

FlnsnoWs 

Investment Truaa 

Others 

Tomb ; 

Ona breed an ataas eanpantos Had on (ho London Shav Swvfca. 


Mbm 

Fafls 

seam 

0 

89 

3 

0 

13 

2 

25 

91 

84 

75 

158 

429 

15 

55 

121 

54 

130 

325 

23 

12 

11 

48 

130 

197 

29 

199 

273 

43 

SO 

40 

309 

877 

14S4 


TRADmONAL OPTIONS 

Fm DesOngo Am 13 La* Declarations Sept. 15 

Las* Dtra»ng» Jtm 24 For ss tUamsnt Sept. 28 

Cals: Anrinsx, Craaaroads OS, H nl urre , Radb* Tadpole Tech, TUktw Ofl, Vnan 
tntt Puts: Aminex, Dtxons. Helena, Ttariow OD Puts & CaBs: Greanwlch Ran, Hrltna, 
Varson ML 

LONDON RECENT ISSUES: EQUITIES 

Issua Amt Mo. Ooss 

price paid cap 1894 pnos Net on. a* re 

p 141 Km) Mtfi lour Stoclt p +1- (hi. cov. ytd net 

il20 f!p. 99.7 123 115^ Aero. HaiMe 122 -1 W3.74 JLB 3J 12J 

181 FJ>. 304 104 IBOAnwy 163 LN 1 XJ 8 OB 5v4 205 

2SS FP. 146X3 XT 266 Aigant 
IDO FP. 44.1 108 100 Automotive Frees 

1150 FJ». 31X1 164 150 Brwrin DcipWn 
- FP. 2319 fit 73 CAMAS 


Nat Dtv. on fVC 
w- dv. CW. ykJ not 


108 UM9 (LB 49 35.6 

152-2 li8 U 48 112 

76 -1 uNS.75 0.7 369 


- 

FP. 

1009 

112 

107 CIS 

107 



_ 

_ 

re 

5143 

FP. 

11.5 

157 

143 CassaB 

167 

♦2 

W3J9 

- 

ai 

10-5 

- 

FP. 

199 

36 

35*1 Ctrine Comma. 

35^ 

-h 

. 

re 


- 

*250 

FP. 

1702 

249 

228 DCC 

228 




3-0 

11 S 

130 

FP. 

45.1 

137 

133 crarey 

136 


W3.1 

IS 

1A 

13.1 

- 

F.P. 

77.3 

93 

SO flanUng Indbn 

82 


- 

- 

- 

- 

— 

F.P. 

8J» 

60 

42 Do Warents 

48 


— 

- 

- 

re 

- 

F.P. 

146 

37*2 

33 *Z Covert GW S Wt 

33h- 

-l«a 

- 

re 

- 

re 

fOS 

FP. 

52.4 

105 

S3 HobNkbI 

95 



tir 

S3 

rxs 


226 Fi>. 1083 232 22S lntoimaabtta 

- F.P. - 77 65 JF fl Japan Wns 

S FP. <20 5*2 5 Kays Food 

180 F.P. 574 183 169 lombard Ins. 

200 FP. 1813 22S 200 ^London CW» 

105 FP. 473 113 1 0S WgMrat^i! 

120 FP. 34.7 130 12Sh Norcw 


LN93 21 53 8.1 


181 WN7.7 22 BO 83 

228 43 Wll.92 13 05 TIP 

105 B33S 2X5 AO 133 

129 4-1 W436 23 44 11.0 


- FP. 

2052 

131 

lie Redraw 

120 

WN2.7 

2 JS 

28 

15* 

FP. 

83.7 

92 

Si Scuoder Law? 

91 

- 

— 

- 


- FP. 

8.18 

44 

43 Downs 

44 

- 

- 

- 


$95 FP. 

14.1 

113 

108 Spargo Cons 

113 *2 

LIP 

1.G 

18 

44^ 

- FP. 

257 

733 

129 Spedrity Sfajps 

130 -1 

1£4 

- 

29 


- F.P. 

SOB 

100 

88 T9 Euro Qwth C 

88 

- 

- 

- 

- 

100 F.P. 

564 

100 

92h TH Prep inv C 

93*1 

m 

- 

- 

- 

§109 FP. 

46l1 

179 

108 UPF 

119 

W3X57 

2.7 

as 

102 

ISO FP. 

41J 

183 

154 vymura 

163 

L4.44 

22 

3 A 

108 


RIGHTS OFFERS 

Issue Amount Latest 


Gbao 550 STM 44 5S2ZM46H54M 
fS51> BOO 8M 2314 33M 50M KW 87 

H5£7Sp83 050 61 BJM 9B 16M 38 47M 

rOBI ) TOO 32 57M 74 STM 61 73 

Rcuterc 482 23 35 - 16 27 - 

r467 ) 475 1B2BM -22M 32 - 

Often Ang Ww fcb Qua *n F» 

Bawtorca 180 28H 27 30 5 104 13 

(*183 ) 200 8M IBM 2PM 14 20M ri 

* undaiytng escusy price fl—ra m am are 
Bared on dcstee G&r pices. 

MV 13 . TbW emraeta: SOJBo* Cda TjBfla 
PUBBttflM 


price 

P 

paid 

Renun. 

date 

1994 

Htah Lew 

Stock 

105 

U 

077 

21pm 

18am 

Stouten Ma 

a 

NJ 

2377 

4pm 

1>2pni vCorp. Sovfcn 

180 

Nl 

20/7 

23pm 

3pm 

Dbun Moroni 

285 

W 

- 

65pm 

34pm 

Eun&mn et 

IBS 

w 

11/7 

250m 

8pm 

Hudam 

105 

nh 

20/7 

Upm 

1pm 

Higgs & >49 

230 

w 

re 

34pm 

22pm 

Janb Potter 

205 

Nl 

Jfi/7 

2flpm 

Upm 

McAlf*» Mf 

5 

M 

21/7 

9pm 

7pm 

SOndenl Plat 

24 

78 

re 

12pm 

10pm 

Unit 

250 

NB 

27/7 

38pm 

29pm 

was ** 


FT GOLD MINES INDEX 


M6UM*MK(39) 190682 +0JQ W06.12 1904.15 188220 221 238740 188X9 

ri B a o l ml Mas 

WW06) 2710.16 4-13 286645 270258 2207.18 433 344030 19022 

Aabttarisn 281535 -02 2B2Z40 250459 185431 133 301339 1EB11I 

Norib AOlrica|11) TSC&to -03 1580.16 157138 1478.79 a 71 203935138201 

C u pn tf tt . Tta Asm* 1ki«s LknBed 1994, 

Agues h tas fih e w •» nunte of cara ps r ile s M US OeAn. Bare Vbfare; 100003 SViZAe. 
PnMecreecrOeUMhretedRc Jm 1& 220* e^a iMnge A1 polnM; Yeerr^oc 17031 Partal 
lireai pneaa —a niwrrreHn Mr ftie Mm 


Jm 

19 

*1*1 
□a atj 

JM Jan Tare 

9 6 ago 

Bran <flf 
yMIK 

62 MriL 

Mgfe tw 

180682 

-HU 

1908.12 1804.15 186220 

221 

236780 162288 

2710.16 

+18 

206045 27028B 2207.18 

483 

344080 190223 

261555 

-02 

2SZ240 25S899 IB6487 

188 

301389 1EB11B 

1SE&21 

-08 

158CL16 157188 1478.78 

a?i 

203985 138380 


Closing -vor- 
Price 

P 

20 pm 
2pm 

3pm -9 
34pm -12 
8pm 

iWm 4ij 
20 pm 

Upm 

9pn tlh 
12 pm 

29pm -6 


FINANCIAL TIMES EQUITY INDICES 

June 18 Juna 10 Jim 9 Juno 8 June 7 Yr ago *High -Law 
OraBiwy Stars 23063 24192 2«7lJ 2411.9 2382.1 22823 27133 23212 

Onl efiv. yMd «24 4.18 420 4.19 422 4.16 422 3.43 

Earn. yld. K tuB 5.99 5.61 SM S32 5.62 433 5.79 182 

P/E ratio net 18.75 19X12 16.98 19X74 19XM 2&S2 3839 I8X5S 

PTEnCtonfl 19.44 19.72 1059 19.67 1SLG8 2895 3080 19.1t 

"Fer 1904. OnHty Ehare Indre mce cotifriAtte htyi 27118 2/00194; kr* 49.4 26MM0 
FT Onftioiy Store Max bese dsM 1/7/36. 

Onflrwy Stare houriy ctanges 

Open 9 lO0 10X10 11X» 12.00 1000 14J» 15X10 IBjOO High Lore 
2422.4 2415-1 3403.7 2393.1 23S4J 23298 23018 23863 2385,8 24238 2381.7 


SEAQtersatns 22339 22^55 2 

Erjialy turnover pmjj . 1264.7 l 

Equity bargalnst - 26.036 9 

Shares traded jmW - 517-7 

t bri rino tatBOBM twatim ard ouMere tanm. 


Jm 13 

Jm 10 

Jims- 

June 8 

June 7 

Yr ago 

22A39 

22.985 

43^6$ 

Z2JB7B 

21203 

29597 

• 

1264.7 

1711X7 

12619 

936X1 

10003 

. 

26,036 

57.745 

24.542 

24,088 

32888 

- 

517.7 

592.1 

5002 

4188 

4328 













































































































































































































































































































FINANCIAL TIMES TUESDAY JUNE 14 1994 








































































































































































CURRENCIES AND MONEY 


MARKETS REPORT 


POUND SPOT FORWARD AGAINST T'-iE ROUND 


Dollar in retreat 


Owing Change SWofftf Diy* Md 
mlfl-puiu on day spread high hw 


i BKXxtb Tim luuntfaa On* year Bark of 
a %P* Rate HO WA Eng. Index 


D-Mark strength following 
Chancellor Helmut Kohl’s suc- 
cess in the European elections 
on Sunday and dollar weak- 
ness caused by fears of rising 
US inflati on characterised the 
foreign exchange markets yes- 
terday, writes Graham Bowiey. 

The success of Germany’s 
ruling Christian Democratic 
Union was seen partly as lift- 
ing the political risk that has 
weighed on the D-Mark and as 
a sign of voter confidence that 
the domestic economic recov- 
ery is gaining strength. 

The D-Mark strengthened 
against the dollar in early 
trade. But later comments 
from US Federal Reserve Board 
member Susan Phillips that 
there were slight signs of infla- 
tionary pressures developing 
in the US and remarks by US 
Treasury officials about trade 
negotiations with Japan fur- 
ther unnerved the markets and 
precipitated a dollar slide. 

In the UK, the Conservative 
party’s dismal performance in 
the European elections had 
largely been anticipated and 
had little overall impact on 
sterling: 

■ The dollar stabilised in. late 
trading after earlier weakness 
following comments by Mr 
Lloyd Bentsen, US Treasury 
Secretary. 

He said Intervention last 
month showed Washington 
was not trying to devalue the 
dollar to gain access to Japan’s 
markets. "It (is) not in our 
interest to try to work our way 
into the ynarirnf . by devaluing 
the dollar," he said. 

But analysts doubted 
whether Mr Bentsen's remarks 
would offset new scepticism 
about US inflation. The 
remarks by Ms Phillips, follow- 
ing adverse producer price 
data last Friday, provided the 
catalyst for a more sombre 
mood. 

“Her comments are in Una 
with the general US authori- 
ties' view that there are risks 
that inflation will rise but that 
it is currently subdued. Never- 
theless, the dollar began to test 
the downside after her 
remarks," said Mr Adrian Cun- 
ningham, an economist at 
UBS. 

“The slow grind downwards 
of the dollar against the 
D-Mark continues," said Mr 


Doflar 

A+ja!n*t tha D-Mnrk (DM per S) 
1.80 1 ■— 


1.70 ^W-J- 


Jm 1894 

Source FT Graphite 

■ Pound In Dm fork 


jn 13 

— Lass — 

- Fra*, don - 

Espot 

1.5215 

15090 

1 mft 

122D7 

1J0B2 

3 orii 

1519* 

IJS069 

17 

16137 

15013 


Avinash Persaud of JP Morgan 
in London. ‘The markets have 
woken up to the inflation 
threat posed in recent data and 
elsewhere. There is scope for 

qne last fhral fling dOWUWSTdS 

«wtn the Federal Reserve tight- 
ens ami the dollar stabilises. 11 

Comments by Mr Robert 
Rubin, the White House rftiaf 
economic adviser, further 

imfiprmrnpd the dollar. He said 

the US was not backing away 
from Its objectives of opening 
up Japan's markets to more 
imparts and bringfng down its 
trade surplus. 

"Kohl’s success and these 
very unhelpful remarks have 
given the market an excuse to 
test the downside of the dol- 
lar,” «flid Mr Robin Marshall, 
chief economist at Chase 
Investment Rank 

Analysts said that investors 
were also cautious ahead of 
today's US consumer prices 
and retail sales data. The dol- 
lar dosed yesterday at DM1.65, 
down from DML6672 on Friday 
and at Y103.145 against 
Y103315. 

■ The D-Mark's strength fol- 
lowed the German CUD’S vic- 
tory in the European elections. 

“There is a fading that the 
worst is over and that the 
economy will emerge strongly 
from the recession,” said Mr 
Persaud. "As confidence grows 
further the gains will he main- 
tained and the D-Mark will 
remain supported." 

But Mr Cunningham saiih 


“When the market starts to 
focus on the probability that 
the Bundesbank will continue 
to cut interest rates, we win 
start to see the D-Mark giving 
up some of Its gains.” 

Yesterday, Bundesbank 
council member Bans- Jurgen 
Krupp said he was "quite sure” 
that there would be “a further 
cut” in the official repurchase, 
or repo, rate in Germany, 

■ The pound was hit by the 
general strength of the D-Mark 
and the outcome of the Euro- 
pean elections, although it did 
find support from the fact that 
the Conservative government’s 
performance was not as bad as 
had Initially been expected. 

The British currency largely 
shrugged off producer price 
data for May. This showed a 
subdued OJ. per cent rise In 
output prices in May, but a 
wonytngiy large jump of OS 
per cent in Input prices. 

The pound lost just under a 
pfennig yesterday to close at 
DM2.5061 in London against 
DM25142 on Friday and gained 
about a cent to $15185 from 
$15080. 

In the futures market, the 
December short sterling con- 
tract closed at 9357 from 93.79, 
thus discounting short-term 
interest rates about a percent- 
age point higher than the pres- 
ent 555 per cent by the end of 
the year. 

In the UK money markets, 
the Bank of England inter- 
vened to sell £40Lm of Treasury 
bills due June 17 at 4ft per cent 
to 4$ per cent after forecasting 
a surplus of 2400m. Overnight 
money traded between 4% per 
cent and 3V4 per cent. 

■ The French franc was sub- 
dued, largely as a result of 
D-Mark strength but also due 
to the poor performance of the 
ruling Balladur government in 
the European elections. 

■ The Italian lira benefltted 
from the success of the Berlus- 
coni government in the elec- 
tions. 

■ OTH0B CUBMCM 

Jun13 £ S 

Mum 157.164 - 157.399 103200 - 10800 
fen 2629 JM - 263&OD 174400 - 175000 

nmmt 04516 - 0.4528 02974 - 02879 

Marti 30032 - 343009 226140-226400 
An* 2957 JO - 2966.41 1947.00 - 195X00 
UAE 55784 - 53887 16715 - 16735 


Bump* 

Austria 

Bafokan 

Damn* 

flrtaod 

Pane* 

Germany 

Grew* 

Mand 

W? 

Luxembourg 

Netherianda 

Nanny 

Portugal 

Spain 

oWIQDfl 

Switzerland 

UK 

Ecu 

SOR 


176314 

-00311 

230 - 388 

17.6880 178053 

17JS78 

03 

17.622 

02 

. 


1133 

515834 

-01742 

500 - 167 

51.7440 51-52*0 

81^734 

02 

513184 

-03 

51.4764 

02 

110.1 

ftftQSO 

-00108 996 - KJ1 

0*188 07792 

0.8127 

-03 

93285 

-03 

93406 

-04 

11&S 

E3484 

+0.0065 380-692 

&35B2 85950 

. 

- 

- 

- 

- 

* . 

803 

8A480 

-00030 

438 - 521 

05672 05288 

05523 

-03 

8357 

-0.4 

8.530H 

02 

1005 

2-5061 

-OflOBI 

051 -071 

16104 12020 

2A0C3 

-0.1 

25066 

21 

2488 

OT 

1233 

377.523 

-0458 

0+4 - 002 

370026 380802 

- 

- 

- 

- 

- 

- 

- 

14273 

+00008 263-282 

1.0287 1JQ232 

1.Q27B 

-03 

UBS 

-04 

13291 

-02 

1043 

242046 

+43L8S 887 - 192 

2427.96 241 7 JO 

342&5S 

-25 

2438 

-23 

247030 

-21 

77.7 

51^834 

-017*2 

500 - 167 

51.7440 51JS240 

5L5734 

03 

51313* 

-03 

51^4704 

02 

11S.1 

23082 

-O0Q91 

077- 107 

20171 28060 

2800 

0.1 

28097 

-OI 

2.7B83. 

07 

119.0 

108717 

-00227 

673 - 761 

mfl076 108618 

108801 

06 

103786 

-03 

lOLBOOe 

0.0 

853 

281.327 

-1JH5 

100-5 <0 

262095 261.100 

262J3Q2 

-43 

204247 

-*J5 

- 

• 


205.773 

+0119 

608 - 941 

20&966 205.457 

20&2SB 

-28 

207.T63 

-27 

209323 

-20 

801 

112833 

+00477 

744 - 921 

11.0821 11J9BO0 

120063 

-23 

123413 

-13 

121383 

-13 

743 

2.1181 

-0003 

168 - 194 

21261 2.1155 

21188 

03 

211*2 

07 

2091 

13 

1183 

80* 


IS) 

- 1.2995 

- 0838334 


- 001 1.3037 12878 1.3006 -09 12968 08 12983 0.1 


Argsralna (Pose) 1J1B7 +00108 156 - 168 15165 1.5081 - - - 

BrazS OS) 3276.53 +80173 968 - 740 3Z77.40 319720 - - - - - 

Canada <CS) 22971 +00282 981 -960 20980 2X1746 2J098S -02 2.1022 -1.0 2.119* -1.1 86.8 

Marin (Now PanS 5.1180 +OJQBQB 128 - 231 5.1231 52741 - - - - - 

USA (S) 12189 +00109 185-193 1.5193 1.5088 1.5181 06 1JS160 02 15118 05 86.1 

PldiicMdCb Eaat/Africa 

Austria (AS} 29840 +00113 832 - 848 2X1648 2X7465 00633 OA 22817 04 2.0606 02 

Hong Kong Q*S) 11.7521 +00836 478 - S83 11.7583 11272B 1124* OS 11.7402 04 11.707 -4J.1 

fndta (RJ) 47.6479 +02457 315 - 642 472842 472310 - - - 

Japan (V] 150667 -0037 588 - 748 156250 158230 156292 22 155.477 32 151.417 04 1806 

Malaysia (MS) 32373 +00217 355 - 391 32381 32153 - - - 

New Zealand (NZ5) 25794 +0018 772-816 25816 25588 25787 02 25822 -04 25888 -04 

PTOppfnes (Paso) 41.1823 +02954 477 - 769 41.4769 408477 - - - 

Saudi Arabia (SRJ 52964 +0041 947-081 5. 8881 52888 - - - 

Singapore (SS) 23264 +02138 254-274 23274 23116 - - - 

S Africa (Com) {R} &4950 +00326 924 - 878 5.4876 5.4862 - - - - - 

8 Africa (Pa) (R) 72831 +02873 660-002 72002 72347 - - - - 

South Korea (Wop) 1225.68 +083 528 - 80S 122008 121721 - - - - 

Triwan {75} 41.1007 +02927 B23 - 191 41.1191 412623 - - - 

Thabnd (B0 302004 +01988 751 - 2S6 302258 369120 - - - 

1 SDR itta for Jut 10. BtifaStr ■pteada to 8» Pound Spot table xtxw art/ me toer area dsokad ptoce*. Fonmi) ratotr are not dkaedy quawd to Ifi* merit 

but n tasted by oarer* MM mm. Surtna tadm cririered by a* Bank of Contone. Bare angi M80 • KXLfikt Oder and iM+ore In Mi Ma and 

Mb Data- Spot ablai dartred tan THE WMTBa CL08WG SPOT RATES. Sob* wtoM mm idraXtod by 9» FT. 


DOLLAR SPOT FORWARD AGAINST THE DO! 


Jun 13 CMng Change SW/bfSar Da/a mid On* month Thn— mortha Ona tear JJ» Morgan 

mid-point on day apaod Wgfi tax Rata %PA Rata KPA Rata KPA Intto 

Europe 

Austria (Sdi) 112080 -01048 065-105 112930 11.8055 112155 -08 11219 -04 112438 02 1032 

Belgium (B ft) 332610 -0361 480-740 34.2500 332430 332885 -12 34231 -08 34258 -02 1042 

Dereimlf (OKr) 64553 -00535 536 - 570 62011 04536 6.4838 -12 04783 -12 62103 -09 1042 

Finland (FM) 5.4970 -02341 920-020 52231 5.4018 52012 -02 52096 -09 5262 -12 752 

Ram JFFr) 52Z78 -00432 266 - 290 52870 06285 S233B -1 2 5.0414 -12 52110 02 1042 

Germany (0) 1.6500 -00172 497 - 502 1.6652 12497 1251 -07 12619 -02 1.640 02 1042 

Greece (Pr) 240250 -2.1 300 - 800 25O2S0 248200 2402 -05 250.75 -32 25325 -12 «L7 

Ireland 0£) 12788 +02087 776 - 790 12000 12719 12774 1.0 12748 12 1.4680 07 

Italy 0) 159325 -1526 900-410 100720 159320 1587.75 -02 1008 -OT 18342 -22 78.1 

Luxembourg <LR) 332610 -0261 400-740 342500 332480 332685 -12 34231 -02 34290 -02 1042 


Netherlands 

Norway 

Portugal 


(Ft) 12485 -02184 430 - BOO 12884 12480 12500 -OJ 12547 -05 12460 02 1042 

(NKrJ 7.1578 -02668 568 - 580 72150 7.1506 7.1611 -0.6 7.1711 -02 7.1051 0.7 852 

(Ea) 172250 -125 850 - 150 173.700 171250 173705-112 178.125 -92 1004 -42 812 

fpta) 135/475 -02 400 - 550 138270 135.400 135266 -32 13028 -32 13&82S -2.5 802 



(SKi> 

73885 

-00254 

857 - 932 

73188 

72*98 

7307 

-27 

72305 

-25 


-21 

803 

Swdzartasid 

(SR) 

13945 

-03134 

040 - 350 

1.4090 

13940 

13940 

-OI 

13948 

■01 

13833 

02 

1042 

UK 


13189 

+00109 

185 - 183 

13193 

13068 

13181 

OL0 

13109 

03 

13116 

03 

89.1 

Ecu 


1.1088 

+00105 680-681 

1.1001 

1.1800 

1.1074 

13 

1.108 

13 

1.1757 

-O0 

- 

SOR 

_ 

1.41238 

. 

re 

- 

- 

a. 


- 

- 

- 

- 

we 

America* 

Argentkw 

<F«o) 

03982 

-00002 

081 - 982 

03904 

02901 

_ 

•» 

. 


_ 

. 

_ 


[&) 2157.18 +3725 717-718 2157.18 2157.16 


USA (S) 

PacMc/MMcfla East/ Africa 
Auatrefa (AS) 12J 


PNfippbiea (Paso) 27.1000 


S hg e pore 


+00074 004-009 

13822 

13748 

13824 

-13 

13860 

-12 

1.4022 

-1.6 

832 

+0218 670 - 720 

33720 

33600 

33706 

-04 

337Z3 

-03 

337S7 

-as 

_ 

- 

- 

- 

- 

* 

- 

- 

- 

- 

1002 

-00023 587-501 

13S04 

13550 

135B2 

-03 

13S93 

-at 

1383 

-as 

893 

-02005 365-380 

7.7300 

7.7385 

7.7368 

ai 

73303 

-ai 

7.7S38 

-03 

- 

+00025 875-725 

313725 313875 

31.46 

-3,1 

31305 

-22 

- 

- 

- 

-0.77 120 - 170 

103.700 103.120 

102.95 

23 

1023 

2.5 

ioai6 

22 

147.1 

-00043 917-927 

25B70 

23817 

23047 

33 

23012 

1.7 

22122 

-as 

- 

-02003 972-982 

1.8882 

10841 

1.7 

-13 

1.7040 

-13 

1.T2B3 

- 1.7 

- 

- 000-000 

273000 262000 

- 

- 

- 

. 

. 

- 

- 

*00001 502-505 

3.7505 

33502 

3J51 

-02 

3.753 

-03 

3.7057 

-a* 

- 

-0002 314 . 31 s 

13338 

13314 

13309 

02 

1330 6 

03 

13327 

-ai 

_ 

-00045 170 - 185 

3.6215 

32170 

32333 

-6.1 

32618 

-43 

37383 

-33 

- 

+001 850-050 

42050 

4.7850 

42287 

-ft.* 

4287S 

-7.7 

- 

• 

- 

+036 900-000 

807200 800200 

80026 

-43 

81X46 

-33 

83126 

-3.1 

- 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Jtma 13 88 DKr FR 


(IS) Z725SS -0.0015 54S - 0*5 272735 272646 272796 -OS 27.1196 -02 

(80 25.1500 -025 400 - 600 261800 25.1+00 25225 -32 2526 -32 2523 -2.7 


tsm m lor Jun 1IL MAXhr apaada n ata Doaar Snot Ma* «as oner 9w laa «vm oaremf siioaB. Rnred Mu ■« not drecay aunanl at me mamai 
QutasWpfl+otiycwrecnnMisatiMs. UK aW a M AECU — qiCTdwlSttcmcT.aP.A Aa B a ' mu amnJo— Jwntt ■ ■■ a nre pa tMMflO 


■MS EUROPEAN CURRENCY UNIT RATES 


Balgkan 

Danmark 


Italy 

Netherlands 

Norway 

Portugal 


Swtaartand 

UK 


Ecu 

Yon per 1200; I 


(BR) 100 
(DKi) 5221 
(FFr) 6034 
(DM) 2026 
09 6022 
W 2.131 
(FQ 1838 
(NKi) 47.45 
(BO 18.74 
(Pta) 2606 
(SKr) 43.06 
(SFl) 2436 
(E) 5128 
(C3) 2420 
19 3326 
(Y) 3292 
39.71 

ah Kroner. French I 


1627 4258 

0716 2256 


T 0323 2440 

5 0353 0.104 

1 3243 0092 

0 7284 0305 

2 6271 0259 

4 4.154 1218 

4 7.135 2292 

3 4230 1.183 

6 8248 2206 

fl 4278 1.195 

5 6827 1250 

7 5425 1689 

8 6280 1229 

, N u wag tai l Kroner, and I 


4082 

2468 

2831 

8667 

2356 

m 

8612 

2226 

9201 

1178 

2020 

1143 

2420 

1154 

1593 

i 15444 
1883 

i Manor par 


6*46 

2286 

3286 

1.121 

2.736 

QL110 

1 

2584 
1275 
1285 
2246 
1220 
2. BOS 
1240 
1248 
1723 
2.162 
10; Mg!nn 


NKr Ea Pta 

2127 5006 3892 

1129 2605 2092 

12.72 3067 2402 

4238 1042 82-12 

1058 2544 2004 

0.448 1080 0504 

3270 9322 7020 

10 2404 1882 

4.160 100 7076 

6282 1272 100. 

9273 2101 1712 

6132 1234 87.17 

1027 2812 2008 

6184 12*2 9014 

7.188 1722 1305 

0927 1668 1313 

0388 2012 158.4 

Pane. Eacudo, Lira and Fee 


•tan 13 

Ecu con. 

rales 

Hri* 

•goal Ecu 

Otenge 

00 day 

H+Afaxa 
can. taaa 

% spret 
v rwaaka 

Ireland 

0200828 

0791277 

*0002788 

-015 

822 

Hathariantto 

2.19672 

2.16877 

-000218 

-136 

537 

Belgium 

403123 

307833 

-00393 

-1.07 

628 

Oarmany 

124004 

123283 

-000152 

-086 

5.43 

Franca 

833883 

638904 

+000008 

078 

3.72 

PatanUt 

7X1079 

736393 

•000943 

129 

2J9 

Spain 

154350 

158210 

-0246 

223 

126 

Portugal 

192284 

201390 

-0275 

433 

020 

NON ERM PkKMBERS 





Qreeca 

284313 

291.154 

+0687 

1007 

-003 

»«y 

1793.10 

108820 

-224 

422 

030 

UK 

0766749 

0771632 

+0001551 

-122 

628 


WmW8(IMM) DM 125200 par DM ■ Jt 

Open Latest Change high Low Eat vd Open Ira. 

06035 00048 +02047 02051 0.6035 15203 78240 Jun 

02998 06039 +00048 02042 05997 30538 50487 Sap 

06040 02040 +00045 06040 08040 079 1248 Dae 

WAHC WFTUW— QMM) 3R 1 125200 per SFf ■ tr 


I1B WITH— i (IMM) Van 122 par Yen 100 

Open Lalaet Change Wgh Low Eat vd Open an. 
12680 08675 +00025 02076 02000 10283 20,744 

12710 02740 +02029 02740 09705 38231 8L210 

12800 02800 +00014 02806 02796 293 1,776 

l WmWB(B4M) £63200 pare 


ecu cereal *a art by the Baopean Corentorion. OaranciH are h dewandna taMw atranodt 
Parewaase rtaagaa are ire Ecu a poridw charge danom a aaah curancy. Oharj^no* arnma the 
twi° hearewi taw apiaada; ffa pewareaga dWaanca h a f iea i Itor ectnel rwriaa and Eau canwri Mae 
tor ■ owiancy, and tM rnaxkmM pamtred pemanoasa aavtadna ol Sm cnannre matwr nwa Ana Ka 
JBcueanMiata. 

trnwKQ 8M*ns aid toBan Um auaaendMl tai Btt*. MBaarent ataABad by M Rnandri Unas. 
■ PHOJUMMPlWCTBOFnOMB £31250 (cants perprxaxft 


Jut 

07146 

07147 

+00028 

07150 

07142 

8259 

17^72 

Jut 

12190 

12130 

Sep 

07113 

07150 

+00027 

07158 

07107 

23.001 

25,344 

Sep 

15074 

12110 

Dec 

0.7159 

07156 

+00019 

07150 

07168 

184 

520 

Dec 

12100 

12110 


Stria 

Price 

Jul 

- CALLS ~ 
Aug 

Sep 

Jul 

— PUTS — 
Aug 

Sep 

14 a 

827 

048 

050 

- 

. 

015 

1280 

8.10 

8.18 

656 

- 

013 

042 

1278 

3.73 

424 

423 

009 

047 

021 

1200 

iJTB 

254 

222 

028 

121 

1.78 

1228 

026 

1.14 

120 

125 

2.49 

3.04 

1280 

029 

048 

027 

322 

424 

4.73 


praam dqre wL. Ori* 1SJM nrei4^«7 . Pma. dnili op«i Inu Ctoa mois Pin 900,871 


WORLD INTEREST RATES 


MONEY RATES 


II UK INTEREST RATES 


I (UFFET DMItn poW» Of 10096 


Jure 18 

Over 

night 

One 

Three 

mhs 

Etx 

mths 

Belgium 

Si 

5K 

Si 

5U 

week ago 

*4 

5TA 

Si 

5b 

Trance 

5b 

5b 

5b 

Si 

week ego 

SKr 

Sb 

si 

6H 

Qemteity 

5.05 

5.05 

523 

623 

week esc 

fi.10 

5.03 

526 

OIO 

Ireland 

S\ 

6j 

8ft 

5K 

weak ego 

Si 

54 

5b 

5% 

Italy 

7fl 

7« 

7* 

7R 

week ago 

7% 

7U 

7* 

T% 

rMirMn iptiqa 

6.08 

623 

5.04 

5.06 

week ago 

5.08 

523 

S.1S 

015 

SMtereriand 

3% 

4K 


4* 

week eoo 

4 % 

4K 

44 

4H 

US 

44 

4K 

4h 

4fl 

week ago 

4H 

4 VI 

4» 

40 

Japan 

Z4 

2* 

2ft 

2ft 

week ago 

2 i 

2* 

2ft 

2K 

■ $ UBOR FT London 




tntarfcank Rring 

- 

*4 

4ft 

4n 

weak ago 

- 

4ft 

*i 

4R 

US Doftar CDs 

- 

4.18 

425 

427 

week ago 

— 

4.15 

423 

423 

am United Da 

- 

3Kr 

3ft 

3K 

week ago 

- 

3K 

3ft 

3K 


One 

Lamb. 

Ke. 

Repo 


inter. 

rate 

rate 

6* 

7.40 

420 

_ 

5* 

7A0 

420 

_ 

5+4 

5.30 

_ 

are 

SB 

820 

- 

6.75 

5-08 

820 

420 

8.10 

5.13 

020 

420 

520 

94 

- 

- 

628 

*4 

- 

- 

825 

BH 

— 

7.00 

720 

Bb 

— 

7.00 

720 

821 

- 

H.OW 

- 

626 

— 

625 

- 

4* 

8.62S 

AOf 

- 

4ft 

6228 

320 

— 

54 

- 

320 

- 

5H 


320 

— 

2V. 

2b 

: 

1.7$ 

1.75 

- 

SVt 




Si 

- 

- 

- 

824 



_ 

528 

- 

- 

- 

4 

_ 

ml 

— 

4 

- 

- 

- 



Open 

Sett price 

Change 

«gh 

Low 

Sep 

9524 

9622 

-004 

85.00 

9521 

Deo 

9428 

9421 

-0.10 

9428 

9420 

Mar 

9428 

9428 

-013 

94.68 

9427 


32SS3 206016 


I lUTtlm (UFFE) LI 000m poWa of 100% 


Open 

Salt price 

Change 

Hgh 

Lew 

EbL vri 

Open W. 

9224 

9225 

- 


9223 

2200 

21420 

92.19 

92-03 

-0.18 

92.19 

9223 

7140 

43612 

9123 

91.78 

-020 

9123 

91.78 

3283 

49948 

8124 

91.46 

-021 

9124 

9125 

1295 

12729 

MONTH 

■UROMRS 

■ nunc ptrrum (upfq SRim posits of 10 m 

Open 

Sett price 

Change 

Wflh 

LOW 

Ettt. vat 

Open Ira. 

95.72 

9529 

-006 

9575 

9529 

961 

14294 

96.72 

9549 

■020 

85.72 

96.46 

10473 

29189 

95-44 

9526 

-025 

85.44 

9523 

1284 

7820 

9520 

9620 

-030 

9620 

9620 

305 

8471 


LONDON MONEY RATES 

Over- 7 day* Ona TTroe Sbc Ona 
nlgW nodca month montha months 


htabank SHwftig 4%-3>2 4^-4% <3 -*U 5A-5& 0i|-a 

CO* - - <i-4H 0A-4B 64 -5>+ 531-632 

HraariiiyBBi - - 4ff-4fi 4% - 4fl 

BankBBa - - 4g-«B *H - 4^ 5V-5i 

log* artxxfly dap* 5%-5%4iJ-4a 5-4JI 51* - 6& Sh - 5* Oi - 6(J 

naoouni Marital dafw 4b -8V 4JJ - *A 

UK clearing baric bait tanftig rata 5b par cant toom Fabruwy 8, 1894 



Up to 1 
month 

i-a 

month 

months 

•a 

mondis 

*42 

month® 

Carte of Ita dap. {HDOOOQ 

ib 

* 

3b 

3b 

3b 


Oart* ot Ttoi (top. oodar CUiaxm «a Ibsw. DWMritm vatatam ter earit W. 

Am. tmdw MM of rSacoua 480! Tpa ECtHJ flatd rat. & J- Bport Ftaexa, Mrira 31. 

WBLAttead iwafar pariod Jrai » 139* to .U 26 1904. Sduowe I A ■ *47pa Mnnoantt tor 
parted A(a n 1BS4 to way 31 , 199* sehnto IV B V SJBBtoc. Rnwioa Hcuaa Brea Are 5>»c ton 


i MOKTHICU I 


i Gcuint poMa of ioo% 



Open 

Sett price 

Change 

*01 

Law 

EsL vai 

Ctaen Int 

Jrai 

94.07 

94.13 

+007 

9428 

9428 

1182 

7183 

Sep 

9420 

94.17 

-003 

9420 

94.10 

2S06 

12170 

Dec 

0423 

9327 

■007 

9403 

9320 

949 

7714 

Me 

9322 

93.73 

-an 

9322 

83.72 

740 

3368 


MnMim 3500200 pobita of 100W 



Open 

Sett price 

Ctamge 

Utah 

Low 

Eat vri 

Jun 

9420 

9422 

+001 

9424 

9420 

6050 

Sep 

9441 

9420 

■an 

9441 

9420 

13843 

Dec 

03.77 

9327 

-012 

93.77 

9325 

20121 

Mir 

93.10 

8228 

-018 

03.11 

9225 

7891 


CSU LMrid Da arid rata 1 flute 9ft; 3 nans BK I 
nam are offered rawa tor 510m ium to the naU 
d or, The bods are; Bmfecn That, Bank of Teton I 
mm rants ora tfrown for tbe rkxresaoc Mener Hue 


6 mOW SSL 1 year 8*. S UBOR Mnb 
ri by tour rriorenea banks at 11am ead 
Baretaye and Nedonri Warimkwtis 
> US S CP* and SDR LHwa Dgpaato | 


■ THU Momw 1BWOPOU2H 9MI2 81m polme of 100% 


EURO CURRENCY INTEREST RATES 

Jon 13 Start 7 days One Three 

tarn noBfla month montha 

Belgian Franc 5b - 5b fib -5b 6b - &b 5b -5V 

PanWr Krone 5b - 5 S b - 8b fl - fib 6b - 5^ 

0-M«rK 6ft - 413 5-4% 3-4% 5 - 4* 

Dutch Grider 5b- 5 6ft • 4iJ 6-4$ 5-4H 

French Franc 5b - 5b 5b - 5b 5b - 5b 5b - 6% 

Portuguese Eat 10b - 13b 17b - 15 16b ■ 15b Wb - 1® 

Spanish Peseta 7b - 7ft 7% - 7ft Tfi - 7b 7il - 7b 



Open 

Lateat 

Change 

High 

Loir 

ESL vol 

Open inL 

Jun 

85.44 

BS.43 

- 

95.44 

8542 

69472 

302.262 

Sep 

S428 

9422 

-004 

9426 

9421 

104209 

406262 

Dec 

84.17 

94.13 

-006 

94.15 

94-12 

177222 

361474 


Haded an APT. At Open bana tgareur predcua Or/. 


a 0HOWT «TBflflw omow esoQAoq points of low 



Surtn Franc 
Can. Doajr 
USDofar 
flatan Ura 
Yen 

Mian SSing 
Short term ram i 


6b 

- 5 

5b 

-8b 

fl - 

6b 

6b 

-Sft 

6b 

-6 

6b 

-6 

■ uanmuRV; 


4 a 

5- 

4ft 

3- 

4 5 

5 ■ 

4ft 

5- 

4ft 

5ft- 

Sft 

— -- 


5b 

■ 5 

6ft 

■43 

6 - 

43 

5- 

■4« 

5- 

4tt 

5ft- 

5ft 

Jun 

95.79 

*b - 

5b 

5b 

-Sft 

5b 

■5ft 

6b 

-6b 

sft 

-5ft 

6H- 

6ii 

Sep 

9620 

16b - 

13b 

17b 

• 15 

16b 

-15b 

Wb 

-13b 

13b 

-12ft 

12b- 

11b 

Dec 

9429 

7b* 

7ft 

7b 

■7ft 

7ii 

-7b 

7tt 

-7b 

7b 

-7ft 

7ti- 

7b 




4b 

4» 

-4ft 

4ft 

-4a 

5b 

-5ft 

Sft 

- 6ft 

ab 

-fl 

MOpatl 

ntnracx i 

3%- 

ab 

342 

■3i2 

4- 

Sft 

4b 

■4b 

4b 

-4b 

4b- 

4b 


i.HniBaai(ffi<M|3imparioow 

3520 - 8680 8679 2.134 ' 6107 

9629 -023 9620 05-28 2.150 17,782 

9429 -0.04 84.70 9428 54 7288 


Stria) 

Price 

Jun 

“* CALLS - 
Sep 

Dec 

Jun 

— PUTS - 
Sep 

Dec 

9476 

9609 

9625 

aae 

0 

0 

aos 

0 

0 

0A4 

002 

0 

tun 

018 

043 

040 

070 

02S 

1.12 

125 

128 


&L vcL HW, Orii 930 Pots 2081 Arina days span tot. Catos 20B4W Puts 1043*8 


2ft -2ft 
3% -3b 


5b • 5b 
<A-4ft 
7b -7b 
2b -2ft 

4ft - 4ft 


8 b - 6 

4ft -4ft 
7b - 7b 
2b* 2ft 
4b *4b 


Bft -Oil 
4ft-4b 
7%. 7b 
2b ■ 2ft 
®ft - 6ft 


■ ■unOMAHKOf’TOKSI 


|DM1m pdm oMOQM 




RATES 


Strike 

Price 

Jun 

Jul 

CALLS - 
Aug 

Sep 

Jun 

Jul 

PUTS 

Aug 

Sap 

9600 

9625 

8860 

0 

0 

0 

aoe 

002 

0.01 

ais 

026 

002 

018 

(LOB 

002 

0 

as 

020 

007 

02fi 

049 

0.11 
. 028 
020 

0.14 

n?g 

080 


I MOtoTK PWUH PUTUMK (MATF) Parts Waftank Ofierod mte 


Era. vet. total. Crito 1930 Pria 3204 Prevtous daYi open mu Cato 282M0 Pria 201384 
■ curo nnss nuc OPTHWS (LIFFE) SFt 1 m pdm of 10094 


Open 

Settprioe 

Change 

H0h 

Low 

EsL vol 

Open M. 

Stria 


- CALLS - 



9440 

8420 

+0.03 

9420 

94.40 

0098 

48,103 

Price 

Jut 

Sep 

Doc 

•tan 

9428 

9421 

-008 

9429 

9420 

26290 

48,779 

9800 

018 

017 

017 

0 

94.41 

8429 

-013 

94.42 

9428 

13,408 

38,117 

9575 

0 

028 

029 

026 

94.18 

9404 

-013 

94.18 

94,03 

1 1208 

34.437 

9800 

0 

004 

005 

031 


! jOOWTH aBWOOLLAR Sim potnB of 100% 

Open Sett price Change Wgh Low EslvoI Open Em. 

5r43 


Est tmL toofl, am 0 Rita 308 Prariow dayto open tot. Cads 719 M 3749 


Adam* Company — 535 

Mod That Barit ^525 

AS Ear*. 535 

WerayAradbadar .521 

BatoofBamfa 525 

Banco Bfcao Vb naya., 535 

Brito of Cyprus 523 

Bonk of Mand 

Bar* of kxfc 525 

Barit riScottfld .635 

BardaysBank 535 

6nBfcofMdErt^„ 629 
•0ewiSH*ylCoLU225 
CL Bank Nadodend „. 525 

CNxaANA. 523 

Qydaadrie Barit 52S 

TheCoepetriNa Bark.62S 
CouKi &Co .... — .._525 

Own Lyonnais 525 

Cyprus Riariar Bank 


Oitcan Unrig £25 

D Uf Pe ril Untoad —035 
RaKtol&Qen Briton 6 

f fta b ori Ranting & CO „ 525 

CBreborit 52S 

•admass Mahon 525 

Hahto Barit AO 2 b«i. 525 

•Hamtroe Barit 525 

HerttaUcXQan tnvBk 5:23 

•WOnnajaL 525 

CL Hoars & Co 525 

Hcnghatg ft ShanglaL &25 

Jirien Hodge Bank — 538 

•LBQpekfJoaBFhftSani525 

UoydaBank 52S 

Waghrej B arit Ltd 52S 

WtW Baric 535 

•Mart Baring- 8 

Naft V toknrianr aas 

•flan B rotw... — 5 3S 


•RoodtrigheOuwartee 
Corparaflon LMad la no 
longer auffurieedee 
abanMnglrMfldlon. 8 
RoyefSItQfSccdsnd- 526 
•Sodtti&MknanStas . 535 

TBB 525 

•Unted Bk of KUaafl_ 628 
Urtoy Trust Bw* Ho _ 525 

Wsown Treat 625 

WMsanvUltM* __ . 526 
Yakstire B arit — 625 

• Members of Sudan 
Mereham Banking ft 
Sacurttias Houses 
Asaodritan 
•madnnWeWho 




!,.« CU,rency Fax ' 2 week trial 

bF ^ 

vix /X 7 !;! „ ,Lcr,ion - Vlf ^KO,UK. W 071.734 7173 

- k J r> g r<J !c -CvC!}!;s's fo r O vor20 year; Fo * 07! 



74 HOUR 

frORtlG\ EXCHANGE 

London 
Dealing Dfr,k 


CtJ K R KXCVM A NACKMK>rr 

CUWtHUYWNPtr 

WiactMutriiwM 

HLea dtoA'afl 
LatKtoeEISMSnt 
Titwi.Jteajaj 


• OkEX .METALS -BONDS -SOFTS 

./# for proUuional 

0962 879764 


























FINANCIAL TIMES TUESDAY JUNE 14 1994 


WORLD STOCK MARKETS 


EUROPE 

AUSTRIA (Jun 13 /SCW 


i i 


s -uuii ban; 
i^ans (d 

its 

v ” P* Uil 


t If. 
i ; i * 


* i 


5; 


*. 

v 



RBfilUWURBlBOUtB (Jun 13/ Fra.) 


AG Op 2.755 
AdflmA l 2S0xd 
Atari 7.7HM 
flned 4.6oo 
BBt 4,180 
BRfnLX 17,1TB 
BGnLPI 20,350 
»k#«B 3BJB0 
Bohn £3.000*1 
CSRCbn 1ZB75 
CMS 2.400 
CotWpB 5. BED 
cat 1 iS7 
B*yi 7X00 
ntiab 1X48*1 
5.700 


QfttAC 


gblb/v 

QBGd 

cteuaifl 

Onart 


3.725 

4.ASO 

4X90 
1X55 
1200 
1200 

4.710 
3.170 
B.B30 

8.710 
a 

ibmlM 
PMLm 17 AX) 
PlfttS 1159® 
Pwrfln 3,180*1 
Relief 5oeai 
SAIDS) 
15.000*1 

J 2.205 

SGnAFV 2.320 
Srita 15X50 
saw lAss 
S t/tm, 16.075 
Trees B.950JU 
UC8 24.450 
UnMtfl 2,670 


+15 3 MS 2350 23 
♦BO 4340 3.706 1.7 

— WOO 73Q0 3.1 
-OTSJ00 4 300 ._ 
-SO 4.570 4320 4 3 

+175 10300 17.150 S3 
+25 26S5D 22.748 2 A 
-7342375 33200 S3 
-125 28500 20.150 13 
-251 1076 11.B25 23 
-10 2.700 2200 33 
-20 1200 SAID 33 

— 202 154 73 
-110 8300 0.100 13 

—4 1.550 1330 23 
-30 6320 5,670 73 

— 5300 3.210 33 

+W43B0 3370 4 4 

+15 4.470 3.050 4A 
-51,080 1,430 2J 

— 9.180 8300 5.5 

— 10^8300 13 

-00 5JS0 4.100 2A 
♦10 3.086 3370 4J 


LOlM 1.094 
Loomd 8320 
Leftn 288 

Muhx 141 
FtakM 13Z7 
~ NrdEsl 144 

— Orsan 214A0 

— PBt* 37230X1 
“■ PlItaR 3U 
~ Peonjr 18130 
“ ftlflfc 371 
“ iWl 623 
”■ «nw B78 

— Prun'd B74xl 

— RBAJ14G3.1IM 
RnonM 13130 

— RUcW 588 

— sue m 

— Sagem 2.720 
S®s*n 643 
StLoU 1332 
Setadr 34050 
MSA 51G 
SfftaB 482 

— SMneo 602 

— SktoB 1383 

~ Soefien BOM 

— Somm 1330 

— spun 347 

— 5WZQ 29330 
~ SfliM 200.70 
“• TbIBii 2.600 
-• ThmCSF 101.20 

— TdUB 318X0*1 
~ UAP 148.60 

— UFBIbg 420 

— UnM 436.80x1 

— IM 560 

— VafcM 240.10H1 

— VaBic 273 

— WimaO 286x1 


+/- Max lam in pg 


-32 IMS 1390 1.0 
-ISO 5.700 5380 07 
-330 2BB21IU0 — 
BS4 514 33 
-330 274 207.10 13 
-2.70 15710030 4 J 
-21 1348 m 53 
-1 1B0J0 141 6j4 
2W 100 _ 
-730 525 388 43 
-3 535 382 63 
-^30 234158.10 33 
-8.10 44520 S7D.M 6.1 
-10 336 753 1 3 
-41 1.005 BID 
-27 1.160 574 13 
-19 BO 804 352.10 _ 
-?-5C 157.40 12RSD 27 
-13 752 580 1.4 
+20 945 770 83 
-80S7B02.no 13 
-27 734 676 14 

-4 1.709 1327 12 
-3304088034300 _ 
-17 600 515 2A 
— 61046670 67 
-5 700 480 83 
+22 2.470 1331 — 
-4 792 696 3.7 
-35 2.6001350 23 
-13 5M 340 _ 
-830 377 aSTUB) 42 
-70 2373010750 _ 
-10 3.120 27BH 13 
-2 214 100 66 

—35 S6UD 2S3.1D 33 
-830 22430 1.51 3.7 

"23 484 418 IB 
+430 630 <38.10 63 
-1 BOO bL- 6.0 
-1570 307 23510 87 
.-7 335 240 3X 
♦*78 366 252 82 


Mn> U*» TM 


ne 


• /- tag tom TM PIE 


+/- w mm w 


+/- 


... HETTBLANDSCJun 13/Rs.) 


wax ux tm m 


rf- Hat Lx TM nt 


+/- 1 


1.175 


ABNAnr KLSO 
AEfiOM 9710 
Ahold 46.70 
AXZON 207.00 


_ ATMMR713QB1 
__ Bttm 38. BO 


BOOH 4260 

CSM 64.00 

DSM 133.10B) 
DBChPe 193.70 
B»r 18560 
fMcOpR 1560 
Gamma 10060 
OBrOpfl 4060 
Haonyr 13460 
Hflttn 218.70 
HOOD 321 
HffaDpH 71 JM) 

HafM 74 

IHCCa 37BI 
M&Otn 7060 
fcsasira B1JM 
KLU SB.® 
KMPHT 4760 
KPN 5060 
KPhDpR 4060 
mm 73-30 
- BO 
81.70 
7X20 
FMkl 52.40 
P0h(& 7660 

Rouen 11860 
RnXnco 58 
Ro&K 122 


mm 

-12D0&4OBB60 4.4 
-.704760 3860 36 
-60 52 42 26 

3 T« 8 Sa 

-60 208173.70 26 
—160 19UQ 1E.1D 16 
-60 25 1360 4.7 

+.1010150 BB 46 

+.405860 47 26 
—4 15760 123 _ 
-4602442021070 16 
-233550 284 36 
-.70 78 4160 B.1 

-1 8050 8860 2j4 
-60 45 3860 12 

-1-30 94.70 7460 02 
+1 0060 79150 2.7 
-.10WW 4060 26 
-60 52 44 06 


RfeOBr 

neixAns. 

naiaQio.7 

zW % 

721 
1.720 


z !££**& 

BSO 
1690 


+10 1640 1,130 _ 
-.lUWliAPO 04 
__ 7^0 8.150 a7 
-24 2600 UKU 26 
+17 1 656 775 16 
+1 Z27 1« 1.1 

-11 888 707 _ 
-2 870 863 _ 
+60 1680 1,480 SA 
-6 1,100 B4S 16 
-0 S31 3S0 XB 
* 250 100 46 
-3 815 610 - 
-4 770 558 „ 
-3 685 735 ™ 
-21 16031655 27 
-20 832 BIO 24 
-8 1675 7620 16 


_ Kmtfsu 
_ Konea 
wme 
_ Kubota 
_ Kmeunl 

_ Rwaoo 
— Kwars 
__ Kirda 
_ Kkrtta 
_ Kta« 
_ Ktaosn 
Kytvu 
_ Kywrt 


980 

727 

910 

742 

S3B 

409 

1 

5610 

548 


-5 987 
+7 738 
+11 SIS 
+0 742 
♦a 538 
+19 400 


732 

60S _ 
648 
551 „ 
426 1.7 
31B _. 


LOTI 


PACIFIC 

JAPAN (Jui 13/ Yen) 


men) 

MTUF 

Manta 

Maud 

MStad 


i20sSaSa it 


(Jim 13/DmJ 


RDukfi 1B760 
SlOlfcN 47X0 
LMDp 19060 
1NU 17460 
VhOOpR 5260 
maopR m.io 


-SO 

-60 0560 6860 4.7 
... 10028 00 26 
+JUH66O0S.76 ~ 
-260 KAEO 6560 XI 
-160 6760 SO 16 
-160 5460 7X50 16 
-.40 131 11120 26 
+-20 08 5860 56 

-60 13140 TUTU 26 
-60 10060 0960 46 
-160 21140 18820 46 
-60 5060 4060 1J 
-1.10 230 157 XI 
-1.102)BJD 765 2.7 
-20 HJ60 4560 16 
-20 133GS 104JD 1^4 


Z Alnmu 
_ flieSr 
_ AINAI 


_ A nwda 
_ Ammo 
AndoCn 


_ ADnaraa 
_ ArtmBI 


+60 7650 8680 1.7 
— 8680 8600 4.1 


-6 1630 1636 66 
11760010600 XI 


+501 

70.771 9688 2.7 
-a 3,060 X025 46 
-2 588 420 X4 
-00 6200 +.030 4.1 
-20 5.080 5.000 46 
-25X836 2.250 56 

— 2.538 2.300 4.0 

— lima 14625 42 


+15 1 676 1.482 56 

71*55 46 


+3017.3601 ___ _ 
tin 11600 9600 46 
+15028.10022200 26 
-20 2690X440 46 


— BStBf) 


OBMMKUun 13/KH 


ess 


WA 

BSata 
CnrtA 203 
Codar 5650 
n/S12A12E.OC8 
Onto) 970 
CtesOsSs 343 
EAlta) 178 
FLSB 620 
CtNud SSffl 
SSB 229 
Jytoft 358 
LrbnB 1290 
MCTME 275 
MUrdB 883 
HadaB 380 
SocnsA 570X1 
SaplKB 589x1 
Sinta 421 X" 
loom 32120 
TooOan 840 
UnUnA 230 


+S 730 80S 26 
+1 281 216 XI 

_ 333 207 7 6 
+50 7.600 3.700 09 
+500 1363X1 USX 04 
... 1.140 820 12 
-3 427 310 36 

-.6520325 162 XI 
-5 615 307 22 
+20 643 445 X2 
-1 278 215 06 
+2 425 332 22 
+40 1660 1,140 02 

305 os? 3 H 

+978381 60S 0.3 

-2 737 530 06 
._ 515 639 07 
♦ 1 875 473 0.7 

-1 465 321 26 

-.BO 33846 300 „. 
-5 1.372 818 16 
+560 76730786 42 


Cmnnt* 327x1 
Com 247x1 
DLW 500 
747 
502 


(Jun 13 /Mia) 


AmgrA 

Efim* 
Ensofl 
Huh) I 
HOP 


128 

134 

BS 

3720 

174 

10.70 


-2 15418250 12 

-1 178 130 12 

_ 105 BO _ 

+20 4620 3520 12 
._ 233 173 XI 
-2017601030 - 


Rinfco 

48X0 




Kflf» H 

BOO 


res 

SSI 1.7 

&■ 

111 


13? 

100 OX 

160 

•I 



MettaB 

104 

+2 

2&0 

162 U 

UebSA 

220 

-1 

?5B 

£00 IB 

IMsSB 

?1B 

-3 

£00 

19D 09 

NotdaP 

-400 


405 

287 17 

OaonpA 

BS 

-XO 

10? 

60 .... 


79 

62 


104 

102 

79 IX 
61 IX 

Repoa 

86X0 

-1 

120 6110 1Z 

StckmB 

139 

-2 

270 

180 00 

7sg? 

IMDS 

19 

-1 

31 

18 

13X0 

SB 2160 13X0 ... 


177 -X5O187U0 163 02 
MtjdB ffll —360 635 544 XI 
M4nRg 1X70 -Jo 1640 1.120 1.1 
Alne 2648 -SB 2211 2JB7 02 
Mora 840 -620 570 XO 
1 -252 -81.181 BB7 _ 

AMflP! 970 —4 1625 787 06 

BffiF 300-10 -8203*380 276 X6 
0®«rtl 4« _ BID 436 16 

Etnkgu 363 „ 485 348 22 

ISnrw 384 -1 JO 40460 339 36 

4M -MOOTS «4 tX 

g**Wgr ,T89ir -XI 929 830 12 
BnjmV 40120 +2 575 436J5D X0 

^ 943 -720 090 ef? 12 

BjrtKr 273 +2034B50 238 12 
BHF Bk 396 -I 521 303 37 
_ +4 851 750 1.7 

S2? 1 ?; . 1 '2I9 -10 12301.140 02 

CMKnP 896 -5 1630 840 IX 

-4 S88 32SX7 
-5 2fiO 239 12 
+1 000 40550 0.4 

-28 814 747 1.1 

Ding 237 -7203)8^ 73S ^ 

SSS? ISSda^S^H 

Porag 668 -6 607 SSI xs 

gnr* 270 +3 310 350 12 

DraflBk 38020 -24BB50 370 32 

GEIt 574X1 -7 818 485 12 

Mm 288 +1 307 200 17 

fittol 715 +15 VIS 590 26 

Rantafl 305 -3 243 198 3X 

HoUBn 1X60 -30 1280 1.180 1.0 
Hnw» OOBxt -0 681 802 12 

Hrttz 384 -5 440 382 XB 

HocMf 1.082 -0 1X82 1640 IX 

He** 34120 -8.70 387 JD 28420 XO 
891 -12 1.099 030 12 

228 -2 253 222 XB 

280 -1 324 285 32 

388 +420 433 383 XI 
143 -1 1 08 141 50 — 

822 +1 648 515 XI 

523 -120 558 451 22 
130 +1.10 10120115.10 — 
ISO -. 179102.70 32 

_ 800 650 12 

— 830 080 12 

+1 980 830 T2 

_ 41 D 362 2X 

-12207a IBS — 

_ 210 156 12 

MAN 388 -132; 470 378 XI 

MAN Pf 310 -7 387 302 2-7 

Hmn 43820 -02040850 387 1.1 
ItonrtiV 788 -7 822 755 _ 

Mafla 211 -11 28017520 32 

MueHflO 2.770 -80 3217X770 0.4 

PWA 228 +S 262 210 _ 

PMOKnm 525 _ 630 50450 3.7 

780 +10 688 688 03 


N0HWAT (Jun 13/Krorao 


AMM 

Bnyuwi 

Brgin 


Oxfikf 

DgmMn 

aoA 


8120 

18720 

13X0 

1EO 

0420 

11020 

318 

100 

22620 

154 


-220 112 
-20 108 
-JH1Q60 
— IBS 
+20 114 
—20 149 


+211550 
+20 200 
+a s« 


unrar 

VMA 

WaM 


144 

a 

7B 

BO 

112 

ia 

a 

02 


-i 


— 10450 

— 01 
-20 81 

— 07 

— 122 
-a ifii 

-1 8420 
*2 60 


81 43 
130 02 
13 — 
125 IX 
0550 — 
109 46 
310 17 
05 36 
208 12 
180 02 
13 
155 23 
74 XB 
72 X7 
72 52 
0S2O 12 
122 XI 
31 — 
57 82 


CSX 

CMpb 


_ CflflFfel 
C*nEJ* 


-16 16*) 1X00 _ 

-1 623 408 

+10 7200 901 02 

— 1J80 876 __ 

-101220 891 — 
+3013501270 - 

_ 744 503 13 

-10 1230 940 _ 
+5 534 40Z 13 
+300200 3600 _ 

— 5230 4.070 03 

— 1X001630 — 
+20 1200 1.100 _ 

+8 003 580 1.1 
+10 1X90 1fl40 — 
+B eo* +70 as 

— 480 3n 12 
+B 07® E50 — 
-3 008 855 — 

— 13M 1X80 0.9 
-8 747 415 

3X30 +130 3-BOO X<1D — 

1.150 

717 
1200 
3280 
1280 


12M 

BIB 

1X80 

1250 

1X00 

1230 

800 

1210 

SIS 

a_5w> 

5.190 

1,130 

1.1BO 

785 

1X90 

589 

405 


— MrnttM 


BOO 

2300 

749 

S3 

040 

2,170 

573 

B73 

434 

1.750 

1200 

1220 

1.19B 

3X00 

930 

629 

833 


+101X40 1X10 — 

+10 011 400 — 
+20X7302X30 - 
— 7X30 5380 _ 

♦62 SSO 375 0.9 

+2 8GB 789 — 
+181XES 905 _ 

<3Hra = 

+30 1X30 788 _ 
-1X40 968 03 - 
+15 040 512 „ 

-10 2X00 1 380 _ _ 
_ see 42a 

+H 575 700 1.7 


— StaUt 

— Stmflu 

— snaOen 

— SnaEW 
_ ShwSan 


Skytar 
SnwBrM 


1X70 

’■SS 

577 

588 

374 
000 
E70 
1220 
2.41 D 
773 
8280 

— StanB BS3 
SunBd 732 

— SumBnk 2230 

— SumCrai 598 
._ SumChm 538 

1X30 

449 
BOS 


Surttn 

SundJM 


+8 43? 321 SumMU 

+201X001^12 ... SumMtM 971 
♦B0 1250 1.700 Sorffl TS4 


MbBank 

MbCcrp 


705 

1X10 

800 

58D 

1.130 

X7W 

1X30 


+30 1X201200 

+101x20 no ix 

+40 3240 X720 — 
+10 060 711 — 
+13 034 387 _ 
+3 082 BB5 — 
-2 720 SB7 _. 
+5 782 562 0.0 
-ID 1X40 1260 0.7 
—24 683 480 — 


SumRbr 

— SnnTrB 
.. summit 

— SWUM 

— TO* 

Z TBlDPtl 

— TsKEta 


1X80 

1,740 

004 

1200 

4260 

807 


„ 1X90 7.140 _ 
— 12801.120 — 

— 838 505 03 
-8 605 411 — 
-3 385 286 — 
+5 TOO 500 — 
+0 823 401 „ 
_ 12901.110 — 

+30 2220 2X40 - 
+2 80? 700 03 
+10 8,460 5690 — 
+18 894 818 — 
-S 747 425 - 
+30 2X301200 _ 
-3 573 432 — 
-2 543 404 .. 
+301.100 837 _ 
-JO 7200 1230 — 

+15 475 380 

459 288 — 

-81X30 851 0.7 
+1 309 Z52 ... 
+9 982 684 _. 
*2 794 011 12 

— 1X90 BIB — 
-1012201X00 — 

+9 816 874 ... 
+401220 1X50 _ 
-10 SXGO 3.760 _ 
+5 749 010 _ 
+20X210 1,950 IX 
-4 722 570 ... 


722 

MktfTr 220 
Mac 4x1m 
WOOtiPt 4.40 
WMl 2X5 


— 022 7.40 12 

— 235 231 40 

— 535 439 1.4 

— 4.75 3X0 12 

— 322 2X0 XO 


- HOMB KMQ (Jui 10 / H.K3) 


— Amoyft 


10 


camp 

aw 

Chug? 

ChMotr 

cmEft 


Crttat 

DFsnfl 

flam 

KS8C 

nmgD 

KSergB 

HrtOi 


HOUR) 

HKOlfl 


1X90 

524 
820 

525 


812 

720 


MBOi 

MBPSOT 


874 
DOS 
790 
702 

- 1^5 ~8« 32 Z wrayn 430 

+20 718 436 — M im 88* 

+101270)^30 ~ - 1X00 

" TO fl2S?S2 JS 414 •««*■ 1-730 
-5 ’5SS ’-S9 M ~ MWMt 

+4 300 315 — — JUHtjU 

-8 482 357 1.1 _ W&fi 


Owodt 1X70 

_ Cnf*FM 763 


— HHFUf 


CnoPtcn 1.100 

- Chaw 2200 

— OlUOTB 1X00 
„ CtzWch 958 
_ CsnOB 084 
_ D'cNC BOO 


— MRQnk 
-. Mtfloa 

— MRTrO 

— Moon 
_ MtsmB 


— SPAN (Jun 13 / PtsJ 


_ Dual 1,710 

— , Daft* 1670 
DaKB 1X00 
D-cHP 1230 


Z MzSpn 
_ MoenfTi 

z t£T 


Z “SL 


. 5X00 

Amnv 5,610 
88V 3.140 

BCMH 2X40 
BE** 4X40 
BPopt 15X80 
BSanU SXIOn- 
Bnatto 1X05 
CB^A 3X10 


-170 0X90 5200 2.1 
-00 6X00 5600 42 
-40 3285 2X90 56 
-55 5600 1X50 76 


-10 4X50 3X75 4.1 
) 17X0014,100 ZB 


CartNAt 4.580 
11.710 


NO 

hid Wh 

KaA&S 

MW 

ITM 

KM IS 


Lahmyr 


UnoH 

Luflhn 

LuflPt 


780 

BIB 

370 

102 

IS 


Cimrta 

Dmta » +44 
Bnfto 1270 
BVtai 2275 
Bicker 0X10 
Faces 866 
GrDuF 816 
(ttiCan 4.050 
tank 1X10 
K*» 2700 

Maptra 5270*1 
Mam* 5.100 
Forty 12.000 

S£S ^ 

Ernno 840 
5m B 70S 
TaoacA 3X30 
TNWi 1X20 
11111* 1200 
It) Fan 670 

urnam i.tbo 
1M 1210 
VMhm Z0DO 
VM 3200 


-840' „ . 

-10 6221 4285 52 
— 1.435 700 196 
-50 3X00 2610 3.0 
+10 4270 3600 2.6 


-18012690 9X20 IX 
2X15 2080 4X 


-«6 

-351.7751X80 1.8 
—5 3X60 2,455 3.0 
-90 8,100 8,140 2J 
-91,100 855 — 
+2 056 410 TU 
-45 5,140 3X00 36 
-2D 1X10 921 — 
-50 7600 4200 21 
-180 7230 5600 22 
-150 6680 42>0 12 
—15012X00 9X10 12 
-75 4X00 3X80 ZS 
-8 311 10G — 

+18 086 351 72 
-4 015 610 6.1 
-130 4650 3200 52 
-452.105 1 585 36 
-201635 950 12 
-13 738 578 62 
-30 26001615102 
-10 1.710 1,180 4X 
-20 3.120 Z315 12 
-20 3200 2X50 02 


DMcpi 1,180 
D'itikii 837 

_ D**tfn* mo 

_ DMMPn 1X00 
_ DaftFr 2X20 
_ OMpTor 616 
_ DMmaP 1,110 
_ DTdtfW 845 
— _ IXBO 
1270 

Eksa*! 


1280 
1X20 

Z EzatdG 1.120 

“ Fmc 4.710 

_ FudoOl B7D 

_ F iflOi 2280 


ssr° 43 ^-^ «“ 


FRANCE (Jill 13/Fr8-) 


Accor 

sss 


459M 
80S at 
771 


CanN* 


94100 

540 

3,010 

829 

1.1M 


Carton 178X0 
CrtntH 170 
Crfcaa 1.033 
Casta 145.20*1 

Oran 1280 

CUiMd 417 
CCF 22S 

CrFonF 1X1? 
Cilya 570 
CclncF 330 

CrtM 515*1 
(Umnt 5590 
OackeF raa 
ora* 424X0 
EBF 051*1 
EoiacGn 2X35 
Em 770 
EnAau 401X0 
BtACt 340 
EHSan 837ml 
ElBS«V 919 
ErflCta 7B5 

Ess* 703 
Eta 3.450 
EuralT 1.937 
EuRSCG 652 
EurDU 33.00 
FtaO 145.70 
FancLy 08) 
FnriBe) 4,750 
GTMEm 429 
GaU 2X90 
Garnimt 87m 
CT*ys 590 


-24 879 458 _ 
-5 786 595 38 
-25 898 748 2.7 
-23 013 5BO 13 
+1030 330250.10115 
_ 1635 1.192 26 
-91X02 005 za 
-3X020050 240 IX 
-4 6*3 508 ZB 

+20 3.790 2821 34) 
-3 787 815 28 
-81X801.111 48 
-IS 1.155 843 4.1 
+.30 220501 »KJ 68 
-1X0 2U2D 100.19 — 
-45 2.195 1,003 36 
-330 205 145 5X 
-181X701X21 3X 
-1 455 348 Z2 
-4X0300(0 718 IX 
-41X85 1X11 5X 
-3 856 500 28 


. 529X0 420 Z7 

HWEPf 3S1X0 —1.70 <24 335 36 

MalnE 1X85 -IS 1X» 1X40 OX 

Rhmnta 320 -5 372 305 Z2 

RtmmPt 200 -2 267 225 32 

Rodhl 275 -6X0 313 252 2X 

Son* 1X73 -4 UMSD 870 IX 

SEMJ& 387m +8 438 350 IX 

-8X0 79150 BB1 JO IX 
+11 090 BID IX 

+80 30B 23850 Z2 

51680 +X0 SS2 458 25 
380 -3 397 317 24) 

371 -7 415 371 26 

472 +3X0 Sim 441 IX 
457*1 -0X0 554 410 06 
303*1 -6 443 338 OX 

970 -4X0 979 780 IX 
225 -3 270 220 IX 


SHHfil (Jun 3 /Kroner) 


AGAA 

AGAB 


350*1 

+winl 



AmB 

Astra* 

AstraO 

AUaiA 



B-toB 

EM 

EsttaA 

EsttsB 

BmtnB 

HSMB 

HUM 

menu 

tacUB 


“1 

IBS 

181 

05 

374 

114 


— 486 
_ 479 
-1 000 
-3 085 
-27X40 

-a 184 

-1 10850 
-1J» 10850 
438 


388 

48 


+8 

-1 

-6 

+1X0 

-1 


406 

134 

134 

110 

430 


- roujppun 13 /LIfe) 


BComn 


-7 488 38(20 .. 
-3 737 50511.7 


tneW 


421X0 
543 
519 
750 

ImPftB' 81X0 

MM 503 

wnc 655 

LOTAH 877 

LdEap 400 

Lean? 123X0 


-00 8.180 5X20 0.7 
. -1J B30 G71 _ 
+0.80 439 361 1-4 
—4 960 TEA ZS 
+9 2.994 Z21D 0.7 
-5 840 B30 1.9 
-3Z0 435305X0 4X 
-1980 392 328 — 
-28 1.127 B31 43 
+41X88 850 __ 
-3 065 740 
-9 830 655 IX 
.... 3.4*7 2.750 ZB 
-8 2X091X05 37 
-« 702 604 ZS 
-XO 30.75 2X20 ZO 
+J0 182 135 OX 
-47 939 800 ZX 
-45 0,020 4.660 IX 
-11.80 570 418 Zfi 
-10 2.754 ZD92 0.7 
-37 1X20 672 OX 
.... 645 556 ZO 
-BJ0493BO 420 2X 
-17 680 537 Z8 
._ 71640000 4.6 
-18 1X78 746 80 
-1.80 118 
+1 570 
•1 709 

-7 994 
-1546TXU 
4 30 107.70 


- IF! PT 


-128 8.405 M10 3.9 
-30 6X75 3X10 „ 
-90 Z450 1.778 1.1 
-10 211 70 „ 

-600285*12100) IX 
-300 T26SD 8,110 — 
-85 3.1001X84 IX 
— 3X001X50 — 
-35 2XOS1XB? — 

-152X101X80 — 
-BDZB20Z140 XS 
-1151100010200 — 
-452X84 1X88 
-260 7X30 4,071 IX 
-IBS 4X20 2.118 26 
-140 7X00 3X79 3X 
-340 17X80 11200 4.1 
-60 1X851X38 IX 
-95040200 stSa OX 
-TO 4X03 Z675 — 
-750 29,100 15X00 16 
-345 MJM 10X48 — 
—275 1Z10D 0X00 2X 
-720 17X00 WlWO 97 
-110 0640 4X71 Z1 
-1^010X0018180 2J 
-0301870011610 IX 
-VT 1,649 870 _ 
-3S 3,140 1X16 _ 
-123 6,100 1610 _ 
-115 13851X70 _ 

-sooHssoara i.i 

-140 12.160 1288 IX 
+30010500 7X00 Z4 
-17S5.165 3XB3 IX 
-eSIXBS 480 — 
-150 6X50 4X60 IX 
+00 7X00 4.145 _ 
-00 4X10 2X75 _ 
-370 11J M 1600 3X 
-48018X00 9X01 4X 
-T2fi 1730 1X02 2 j0 
-1.100 38X00 21700 IX 
-150 24XK 10687 17 
910X10 IX 


fcrvxiS 

ModoB 

PnarmA 

nutmB 

SWA . 
SCAB 

SXFA 

SKFB 

sndvhA 

SmtwB 

SEBnk 

State 

SonhS 

StaaA 

Sturt 

SnHanfi 

SyrtnA 

BydhiC 

7Ta» 

MtaA 

WmB 


178 

178 

303 

12EJtf 

126*1 

113 

112 

132 

IBB 

Til 

111 

£ 

170*1 


400 

IDO 

97X0 

93X0 

110 

741 

742 


3&D 2L9 
350 2X 
540 1.7 
438 1.7 
127 IX 
145 1.0 
BO 9.5 
BT 9.6 
282 1.7 
200 IX 
101 26 
100 14 
85 BX 
_ 251 15 
8844X0 Z3 
311 SB 17 
258 17 
158 2X 
132 2X 
17 2X 
108 IX 

in ix 

... . „ 112 3X 

-2 1W 110 3X 
-3 104 125 _ 
128 11 
108 10 
142 0X0 ZO 
73 47X0 _ 
-2 19850 111 IX 
-4 233 1IB 1-9 
-12 475 384 IX 
-11 400 350 IX 

— 144 97X0 ZO 

-XO • 110 81 11 

-XO 122 ' 

+2 IBB 
+1 775 

- 780 


Si 2 
216 
215 
300 
155 

155 
JG5 

156 

104 

lea 

143 



+2 897 041 _ 

-30 1640 1.B40 OX 
+6 708 571 OX 
-20 2X70 1820 _ 

_ 1X30 1.130 — 

+30 2X80 1510 _ 

+101X00 1X10 ... 

+a $84 004 ox 
-B cm 786 
-9 026 410 _ 

+7 835 387 — 
♦101X701,420 

08 

+302X001X20 _ 

— 1X101,400 _ 

+7 940 660 .m. 

+101X20 600 __ 

-3 910 551 — 

— 555 415 

— 1X70 DS3 _ 

+70 2X20 1X60 _ 

+1 526 345 _ _ 

♦201X80 078 _ _ 

-1 886 087 OX _ 

-101,110 851 — — 
+101X101680 _ 712 SPOT 
+10 1X70 1X30 05 
+» 4XS0 3X60 OX 
-7 70S S4S 1.0 
+6 632 408 _ 
+201.7001X50 „ 
+201X801.720 _ 

— 1.170 993 
+50 4X20 3.600 — 

+18 898 521 0.7 
+202650 1X20 _ 

+3 585 446 — 

+00 2X60 1000 _ 

+18 713 585 IX 
+7 482 270 _ 

+17 585 360 - 
+11X«0 718 — 

+10 1270 BOO _ 

+00 2X001X80 _ 

+10 1,100 841 — 

-7 788 614 ... 

+9 933 787 — 
+101X801,100 — 

+5 605 426 OX 


BSD 

3S7 

1X80 

880 


430 

S70 

B03 

443 

1X50 

1.100 


— 1X30 790 OX 
+10 3X10 2X00 
+101X501X20 _ 
+4 724 620 _ 
+101X00 005 _ 
-6 S33 335 _ 

+0 833 603 _ 

-X 533 42S _ 
_ 573 3EH _ 
+15 B7B 7BB _ 
+41X10 042 _ 

+2S 790 487 _ 
_ 735 SCO _ 
-3 550 407 _ 
+2 446 316 _. 
+30 073 380 _ 
-101X00 1,140 _ 
+101X10 1650 ... 
+3 880 466 _ 
-6 844 872 

-7 400 301 _ 

+10 1620 1,100 0.7 
+0 886 765 08 

+4 4» 

+4 453 
+22 875 
+12 940 


TbnSh 

847 

—2 BE? 

STB 17 

Ttnm 

Titaffi 

1.420 

1X00 

+40 1.4 BO 1.070 _ 
— 1X40 1.090 _ 

IXnSei 

BID 

+51X40 

887 — 

% 

668 

48 6B7 

400 _ 

764 

-7 7S6 

61S OX 

Tskkan 

907 

+2 1,100 

7D0 10 

TaaGa* 

615 

+17 815 

500 aa 

Tbflxm 

VMi 

+8 555 

307 IX 

Totxifb* 

BBS 

+7 730 

002 — 

TodaCO 

816 

+21 B3T 

078 

Tael 

539 

-1 007 

533 _ 

Tort) 

a.199 

_ 21X0017X00 _ 


HX Ah 

MBa 

HKLrad 

HMRBA 

HKTal 


3529 

1D90 

3725 

41X3 

72 

BXS 

21X0*1 

16.70*1 

10X0 

4X7 

34J5 

B5 

13.10 
SZ50 

11.10 
805 

40 

15X0 

12.10 


43 


Hymn 

JtarM* 

JMam 

JStrM 

KM8U3 


ToMdM 1X40 




— TkDonw 

— TkHte 

— TkBcn 

— TK&bs 

— TMton* 

— Tlisa 


?5S 

3X10 

3X70 


— DcuCrp 

— Raima 

— Toner 


1,110 

1100 

894 


%s 


— NBKh 

RBXSd 

_ NHKSp 

“ mat 

“ NOK 
HSK 
~ KIN 
Ncrtu 


1XSO 

1X80 

1620 

820 

282 


— Ta 

— TMiDEC 

— TNlBta 

— TMHoi 

— Turn 

— To*) 


784 


IttM 


MmCm 

NffnNn 





376 _ 

337 _ 

57B 

770 17 
-* 448 310 _ 

+20 1.400 845 .... 

+101.100 7BO ._ 

_ 1230 1X00 OX 
-7 702 610 _ 

+101,110 888 „ 

— 13481.883 a* 

— 824 486 aa 
-2DZ700 Z00D _ 

+40 4X40 3X20 _ _ 

+20 1X90 BW _ v^-yv, 

+201.170 9M _ _ JSSS’ 

—10 1660 1X20 _ „ tSSJ" 

-0 *30 395 „ 

-2 291 231 „ 

+20 827 666 _ 

-4 770 528 IX 
-0 774 483 _ 

+8 484 315 _ 

+1 sis ni „ 

+1* 973 781 OX 
+10 BBS GOO _ 
-2010001,780 _ 

— 1.6501630 _. 

+5 815 880 _. 

+4 788 628 „ 

+8 507 400 OX 

+22 769 RB 
-2 307 412 „ 
+1016401X80 OX 
-101.140 855 .... 

+50 7X00 6.150 _ 

-30 8X40 4X00 — 

+8 482 310 _ 

+10 2X601X10 _ 

-10 2X701X30 __ 

_ 1,110 M7 _ 

+12 802 702 IX 


700 

2X10 

777 

873 

1X90 

1X40 

788 

070 

NS 

031 

400 

1.700 


~ Toyoftl 
~ ToyoSk 

— TyotDU 

— ToyoTR 

-- ToydIH 

— Towto 
TaDMi 

~ sr“ 

— IMt* 
■” VKtOr 


1X30 

724 


virarac 

YMtaM 

vanflBC 


3X90 

Z1B0 

518 

1X00 

475 

043 

563 

402 

388 

1X20 

1X40 

1600 

865 


VamKDD 

rattan 


_ Yaohan 
_ Yaaks 


1X40 

1X70 

1.140 

1J4D 

1100 

1X50 

658 


_ Wim» 
_ YomLnd 
„ roahfti 

— Tiraa 

- ZbM 


1X10 

1.060 

040 

729 

905 

1,110 

719 

710 


+3 950 

+1 1X3D 

-70 6X30 6,700 _ 
+5 678 5« 

+10 ir 


_ VaKTifl 

-4 620 460 _ _ TKpwQ 

+4011001X30 OX — rtanBi 

+9 aao 828 _ * 

__ 745 47B _ 

+20 1X60 1.480 OX 
+10 704 B53 „. 

+15 739 508 „ 

-7 760 484 _ 

— 1X90 1.000 OX — 

+0 817 450 — — ABSTHAUApUMO/AustS) 
130 1 fin a.7 _ 

_ 615 441 „ _ 

-31 1,110 908 _ _ AMoyl 
+301.6201620 _ _ Amcor 
-3D 1X10 1X00 „ _ Anuntx 
+28 508 — 


+20 3X30 ZOOO _ _ 
+101620 1.110 — „ 

— 50B 320 — _ 

+6 5*5 415 — _ 

+20 1X90 1.100 OX „ 
+1B 009 421 _ _ 

-20 1.720 1600 _ _ 
+30 2X201X10 _ _ 
+50 2X001X70 — _ 
+20 3X40 3X50 — „ 

+40 3,460 2,740 ._ 

+2 570 491 — 

+18 704 520 _ _ 

+40 2,720 Z2DO _ 

♦60 1X90 1X20 08 _ 
+10 740 450 — 

-6 829 657 — 

-1 730 686 — _ 

— 1X50 1600 — — 

+50 1X40 1,190 — — 

+4 773 570 _ _ 

+7 870 870 — 

+10 1X001X50 — _ 
+26 738 433 — _ 

+8 874 BOO _ _ 

-11 414 285 — „ 
-10 ZOOO 1.700 _ — 

+12 677 421 OX _ 
+10 1.£S0 1630 — 53X 
-4 738 615 — _ 
+11 733 524 _ 

+20 B.ma 2 

+4011001. 

+13 520 330 _ 
+301X00 90S _ 

+3 606 330 _ 

+23 651 432 — 

— 575 345 — 

-3 410 286 — 

+8 388 272 _ 

+10 1X00 635 

— 1X301.170 1.1 
+401,430 930 — 

+29 909 KX — 

+4 1X10 SB? OX 
+10 2X301X00 — 
+701X101X50 — 

-10 1,180 BOO _. 

+30 7XS) 1,110 — _ 
+40 2X90 2X10 OX — 
+101X501.100 — _ 
+11 502 350 IX 

+18 MB 727 08 68X 

— 1X30 734 _ ._ 
-10 1.110 780 _ _ 

+0 OSS 050 — — 

+9 735 528 — — 

+20 1X70 BOO — _ 

— 1.150 921 _ _ 

+18 72S 442 — — 

— TIB 488 - - 


StmaD 

senup 

SHKCD 

5»krt 


24X0 

20-80 

2Z10 

ism 

6.70 

32 

21X0 

8X0 

53X0 

29X0 

14X0 

11.10 

24X0 

36X0 

50 

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53-50 

118 

31X9 


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— I860 8X5 18 8X 

— 50 2800 11 24.1 
15.70 10.40 3.9 _ 

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— 57 37 ZX38X 

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_ 14 B.1 6 — — 

_ 27X0 18X0 1.7 _ 
10.10 16X0 3X14X 

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— BXS 4.17 IB — 

— 45 28X0 IX — 
_ 131 TO ZX — 

21X011X0 46 38X 

_ BO50 47. 75 3X193 

— 13.3010.40 33 ZB 

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— 50 M 35X5 53 — 
_ 24X5 1463 23 223 

— 15X0 KLBO 1 J 7.8 

— 54 37.78 23 20.6 

_ 35X0 2030 37 - 

— 31.73 19.10 03 — 

— 30X5 I860 3.1 24.6 

— 17.70 12 36 

_ DB.B0 8X5 5,1 .... 

— 42.50 37 JO 2.1 — 
... 33X5 1130 4X — 
— 13.10 7X0 OX ... 

— 8430 *6.75 06 __ 

— 38X0 24X0 06 — 

— 25 11X0 227 23.7 

— 12X0 9X0 OX — 

— 42X0 21.10 3X — 

— 30 30 — 67X 

— 77 42 3.4 S0-5 

— 18X0 11 26 44.8 

— 0.15 3.75 3.1 14X 

— 1560 8X5 11.7 373 

— 566 3X0 8X — 
_ 7X0 3.73 0.0 — 

— 71 50 1X7DX 

— 1130 8 2.5 563 

— 35.73 23 ZB — 

— 41 25X0 2X — 

— 23X0 14X0 — — 

— 16X011X0 ZO — 

— 17.40 1170 7X — 


12826 

8200 

5100 

19500 

282750 

10480 

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503824 

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302752 

45290 

14880 

BOO 

26160 

3800 

306 

2844 

48405 

1117900 

26800 


179080 
4000 
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20668 
15000 


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CmptAi 

COrsODX 

CntfdA 

CmUer 

CmnOBti 

CNraca 

Canmo 

CanOce 

CanPsc 

CanRr 

CtnTrA 

CraUU 

CUIUS 

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CanTng 

CanGoi 

CNan* 

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129025 Dobra 
6615 DunuiT 
114111 Dnoiur 
1S3S DuPntA 
4175 DlMBA 
750 Empn 
33000 EchoB 
13000 Emco 
5423 Euttw 
1800 FP1 

24000 Ftatix 
5000 FaMA 
750 FOR* 
7000 Ft Nov 
300 Farm* 
33406 Feom 
48284 4Se*an 
40400 Qmnbj 


S23 22 S 
BBS IDS 
S33 32 
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0850 SH Id 
750 SttJtrA 
15042 ScapH 
4515 SOBHt 
455301 Seeorm* 
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1700 ShsMA 
713633 ShanG 
E262S SHLSV 
4000 SBJttsm 
960 Saute 
115006 EUlra 
19050 Tranx 
B1SZ75 THbE 
f 95788 7a* 0 
1200 TrtOO* 

*SSS5? TekB 
153 Tana 
100087 Thonon 

295782 TwOomx 

180087 TmcnP 
102742 Tim * 
10700 Trumc x 
2041230 TrrflC* 
15K UAP A 
B57 llCnrp 
105743 UKDom 
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£00 vkaro 
2500 W£Bi 
24097 mneax 

30150 westnGx 




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13V 


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4pm dose 


a 


1400 emns 
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400 i .... _ 

4000 OmC 
12000 GndbA 
504S5 Gemra 
227050 GktSrr 
08801 SuKCx 
2170 HuGlAx 
6500 HxwkSdx 
25340 HM*1 
10200 HamUx 


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7B>2 SJSV 74V 
9V S8V BV 
B«Z +V J*H» BV 
12 — V S1JV 12 
9V KRi BV 
315 -5 315 31G 




15V 


40 


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HUM (Jun 13 /MYH 


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Genma 

HXna 


MNUn 

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460 -1.10 0X0 
31X0 +50 58-50 
1360 +X0 17X0 
14X0 -XO 19X0 
3-77 +.02 CJO 
4*1 +.12 US 
4X4 +X0 6.05 
0.75 +X5 0.40 
10.70 — XO 24.10 
14X0 -.10 20X0 


3X0 2X 
25 OX 
12X0 0.7 
13X0 OX 
3.+0 IX 
2X8 06 
3X2 IX 
5X0 3X 
16X0 OX 
12X0 — 


11417 HmOD 
15105 Hotaun x 
373204 KudBty 
3575 IPL 

100020 imtaco 
56002 impoa 

483528 bin 
500 baMur 
400 inure 
790500 brtb 
5585 fttaU 
24385 biuatG 
9759 hracoA 
ZB022 Jrniock 
400 KmiM 


13 -V SIM] d14 
450 +5 455 4+0 
11V SUV 11V 
20V rav 20V 
13V -V SUV 13V 
12 +>« 812 11V 
15V Slit 15V 

lav -V sin ib*i 
i9V +v not i9V 

ZB -V K8V 28 
30V raw. SO: 
34V -VS3SV 


1473 

Q060 BtoChP 
3100 QBnaUx 
47303 Cicada 
500 Cntlncx 
200 OTCB 
8400 JCoutu 
fi®3 MFOdl 
213130 NBt&bC 
BOO OOcorA 
4000 Utaox 
74400 IMtm 


21 V 


V PI 4)1 
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1? 

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17 

7 ”? 

n*i 


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BV 

12V 


AFRICA 

aw™ AFWCA pun 1 3 / ffcmfl 


+ #- mo* 1*1 n* m 


_ Z smsapohe (Jun 13 / S$) 


FiSNv 

GdHAS 


sse 

OUB 
& Akf 


6TWT 

Sbrt 


— UOB 


11X0 

18X0 

2X2 

3-2thr 

S.IW 

lOXOd 

13JO 

BXOxr 

1150 

18.10 

3.44 

370 

4.12 

BXS 


— 1Z70 
+ 10 19X0 
+X3 140 
+X4 3X2 
+.10 0X6 
-xo izeo 

— 18.70 
+.05 7X0 
+10 14.10 
-.10 1BJ2D 
-X2 388 
+X2 4.26 

— 5X0 
+.151113 


10X0 1.B 
15 07 
260 32 
2X9 36 
4X2 33 
8 IX 
11 IX 
SXS IX 
1140 l.B 
1310 IX 
314 OX 
318 35 

3X0 IX 
345 2X 


5700 

166003 

00550 

10076 

5600 

1740 

25000 

34832 


Mortal? 
UHMU 
MBS B 



NORTH AMERICA 


TORONTO (Jun 13/ Can S3 
4pm don 


12700 AMB 


1BS0 ° SSm? 


Biz z 



z & ss a gj a z z asa 4 J 53 

z z aF* 2 


-£0 




83 32 
70 5X 
530 IX 
525 IX 


SHIRBRUND (Jun 1 3 / FtsJ 


-3G0117BD1 



-7 282 181 — 
+8 BBO 360 IX 
-1 898 587 IX 
+10 3005 2J0O 16 
—5 1.349 1X13 IX 
-8 230 190 IX 
-12 747 545 31 
-6 970 BIO IX 
-1 942 775 IX 

+8 422 346 — 

— 2X00 1X50 3X 

— 1^01X00 2X 
-10 2X32 2X35 Z7 

+01X00 B75 IX 
-10 450 375 ZO 
-« 971 702 IX 

— 1751*33) 1.7 

— 901 860 16 
-ID 1X20 1.400 2-3 

-1 16371XB5 21 
-2 176130X1 _ 
+10 1.740 1.430 4,1 

— 5X40 4670 — 
-3 263 190 5-0 


’wji 

544 
756 
834 

noYok 5J3S0 
MraE 726 
buniy 1X40 
JEOL 887 
JGC 1X50 
jnSmM 405 

— JAL 725 

481 
049 

2X10 
391 
929 
703 
1X70 

2200 

HDD 11X00 +20013600 

— Kagoro 16)0 
kSEeh 975 

— lUmRl 1650 

— Knonkg 3100 

— Kanetm 403 

— Knta 748 

— Kmntau 553 

— K**B 2X30 
_ KaaBTi 579 
_ Kao 1X10 

— KawHvy 407 

— KauKsn 405 

— KbwSH 4-°R 

— KBeEx 87B 
_ KetoT 680 

— NhMim 898 

— Kkiden 1X10 
_ nnkw 8i7 
_ ntn 1X40 

— KOhaSt 315 
_ Kattoti wo 

— IWOt 2200 

— Kataiyo 2X40 


= = 
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M= = .. 

a _ 9 zSS 




xoo -zooo unm mm _ 

596 +8 998 364 _ BHP 18X4 

681 +2 B65 521 _ BTRNy 3X8 

-1 949 385 — — 

— 1.3701,050 OX — 

£ S2 £ z z 
&;S3S z z 

+9 902 BOB _ _ 

+4 «re 326 - — 

+301X70 BIS — — 

-A 059 401 ... — 

-i ix4o mo .... ... 

-SXOOZBBO OX - 
+101,710 753 _ _. 

+6 349 



_.1 


+11 982 723 _ _ HaOTU 1MO +201X401X30 _ Ondr 1 

+20 1.140 872 — — Momma Z520 +20 2X70 1.790 IS — DomMig a« 

-203X»Z790 — - IkSka B33 _• B53 656 „ _ EmX 4.79- 

+22 502 251 _ _ OdBRpi 7S2 +14 809 711 _ Enoyfte 1.42 



= z» 

— — Qhuna BIB 

+7 BIO 782 U — OKumGra 835 

z z k \i% 

+20 IXBO 1,730 — — OnodaC 587 

+41 BBO 528 — — OnoPD EJJfflS 

-10 1 J27 1X10 16 __ Daw" ' 

♦4 41B 284 _ _ Ortal 

+2 755 see 07 _ ora 

+14 489 398 — — Omd 

+4 686 479 _ - Pentrt 

— ZI101X1D - _ Ptan4 

-4 400 206 „ — PiSnaU 

♦19 93B 500 - - Mmn 

+4 707 431 _ _ ncen 

-10 1X10 822 OX 
+302X00 2.050 OB 


1660 

710 

4X50 

480 


... 1.470 1X10 as 
+151X30 82S — 


z Z SHta 


-10Z4B2 1X1 
+1 420 339 _. 
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— 2X70 2.500 _ 

+3 580 425 

+20 1X10 1.1SO _ 
+5 500 33B „ 
-4 412 271 _ 
+1 431 303 — 

+22 720 601 _ 
+5 819 515 — 
+0 970 820 OX 
-101X381X63 05 
+7 B77 004 — 
+201X80 1.130 — 
+2 31 B 250 _ 
+23 BSO 7*9 
+30 2X00 1X00 _ 
+70 2X402.150 — 



Smtrtk 


3X20 

576 

578 

1X10 

4X50 

1X» 

635 

1630 

685 

2X80 

1X50 

2X80 

878 

508 


+14 

+1 — 

-101600 887 _ _ 

+2 795 533 _ _ 

-3 950 575 

+5 1.110 856 IX 
♦501X40 9B0 _ _ 

a 1 ® 1 * z z 

-20 5X10 4X70 OX 

+30 1.460 1X50 IX „ MgMG 
+5 740 650 _ _ HmnkS 
+104X202X00 06 BOB lOAia 
+3 538 488 _ — KkUl 
+9 77B 804 1.1 _ Lendls II 

♦10 3X40 2610 _ 

+7 582 3» OX 
-17 585 440 1J 
+10 1X20 70S _ 



— LOTH 


+SQ4£7D3£30 



_ SetaT 

- S"** 

— Srtyu iri'u 
SeKChm 1X00 

1x10 



-201X60 ^ _ 

+101X40 1X30 .. 
+10 890 515 ... 
+10 1860 2X10 06 
+10 1X00 1X10 — 
+20 2X70 2X10 „ 
_ 1X00 065 „ 
... 509 415 _ 

-8 991 870 _ 

+20 7X80 6X50 OX 

+20 3.5*0 7.010 _ 

4,130 +130 4X60 3X70 _ 
tfieo _ 1X801X00 06 
1X70 -301 3*0 1X60 _ 

1X70 *20 1X10 1X60 ._ 

+10 1.1S0 956 _ 
♦10 1600 1X60 16 
-8 512 361 IX 
+20 8X00 7.450 _. 
+10 1X701X20 
+30 2X80 2. C X0 _ 
+16 002 775 _ 
+20 2X001.810 ._ 
+2 1X40 840 ._ 


MajmtN a 
NAB 11.12 


„ NamCp 
... BNMk 


_ 5X5 170 OX _ 
_ 11.12 aia 3x 3sx 
„ 0.10 170 IX _ 
_ 11X0 140 14 83.1 
_ 3X3 2X0 ZX „ 
_. 5.72 4X6 4X _ 
_ 4X1 4 3X_ 

_ 2X5 1X8 4X 8X 

_ 10x0 if u aai 

„ 3X8 ZB2 3X 8X 

— 4X2 861 6.1 _ 
1X8 0X4 — _ 

— 10X8 12X0 4X 35X 

— 175 147 27 „ 
_ 1.18 0X4 86 _ 
_ 5X3 3X2 4X117 
_ 568 4.40 11 SOX 
_ 1132 15X0 3.7 

' __ ax 

bo ex 

XO ZO _ 
4.05 4X _ 

— - 
_ 1X2 0X8 Z5 „ 
_ 0X8 135 4.7 _ 
■— «X2 4X2 5X23X 

_ 1x2 1x5 za _ 

_ 160 0X4 _ 1.1 
_ 165 267 IX _ 
_ 3X1 230 _ _ 
1.47 1.12 5X _ 

— 2X0 2X3 15 TZX 
_ 3X0 250 5X _ 
_ 1.7B 1.12 ZX 26 
_ 1.78 1X6 10 _ 
_ 203 220 7.1 7X 

— 2-02 1.12 3X „ 

Z 11X0 176 26 42X 
_ 4X0 263 SX _ 
1184 1114 4L7 318 
„ 3-40 256 10 _ 

3X9 2X5 IX 718 
_ 10X4 7-70 3X 24.7 
4X1 160 3X „ 

— 13X6 11.00 4.5 12X 

7X0 5X5 IX _ 
_ 10X0 174 OX 86 
_. 120 4X6 TO _ 
1X3 Z7 


3841 

420223 N&taE 
701 AWttfiX 
790773 Alcnfl 
220872 AntBan 
3850 AMO 
1 31180 Armor 
8700 BCSogA 
23003 BCTbU 
410578 BCE* 
2646 BCE MB 
35B6 BGRA 
3700 Bnwra 
584901 BMant 
444381 BhNonS 
12188 B(*£x 
Mnam B mtx kB 
2B 57B8 BOWVU 
flMttSO Biu flu 
1BOOB4 Bnofl 
3827 Bmrar 



17300 

18900 

4771 

3950 

186150 

15219 

43254 

3089 

20352 

149402 

0000 

2050 

301752 

12S35 

63047 

988466 

217100 

9600 

2409 

830110 


MagnoA 

MOUFdX 

MarTUt 

Mata 

MMWal 


9V -V S9V 9V 

tSsSft 

35 -1 35 34 

1BV -VS1SV 1BV 
50+1*1 188V 57 
12 SUV (11V 
29V +7|K5V2&V 
12 -VBUV 11V 

9V -v nvd9v 

-V 55V 4V 
S22VH22V 


lillllRI) 


NorcnE 

NtHTalX 

Nova 

Nowara 

NumacE 

Onsx 

OmikA 


110 112 107 

BV -vnvtsv 

53 -V(S(VG2V 
5V +V 85V 5V 
12V -VSI2V12V 
25V mi 2&V 
14V +-VS<ii 14V 
42V -VU2> 

11 HDV 10V 
23V S3V 23V 
BV KV 8V 
14 -V 814 14 


+V E2^ 31b 
13V MV 013 

^-vSlS 

37V -von* 37V 
15 SUV 15 

idv mev 10V 
24V -vjw* ?4 

»V -V%ViW, 
231 +1 233 230 

21V -V *21 V 21 
14% -v sis 14V 

28 -2 28V d24 
♦v - • 


154800 PocoP 
531288 PWA 
15700 PagmA 
3700 PtfiCrt* 
11250 Pgawa 
76239 PotCen 
24700 PMEn 
363103 PtOoma 
18250 RmrCp 
5300 Pntofn 


■a-aniTi 



113 

Fragol 85.50 

G mar n.n 

CFSA 110 
Harany 24X0 

Hrn» 24 

HNeM 2BXO 
KCOR 148 
bnpkn 7180 
JO 10150 
HntBt 7950 
KHWB B3X0 
LOUe 95 
Maftta 20 
MoOcor 30 
PaMM 87X04 
PnxnBD 150 
Ranabi *1X0 
imam 29-25 
RmtxCn » 
Rugn 97X9 
SaBU n 12B 
Snimcc 20 
SABnw soul 
SAMnAm 49 
sum in 

Room 4175 
1)«U 52 

vneste 4io 
WAn* 43 
Wltap 175 
WbWBl 50X0 


B 8 JO 11 
27 17X0 Z2 
122 03.50 2.0 
170 115 2X 
246 1B2.5Q IX 
425 344 3X 
131 102 OX 

57 26X0 
31 20.70 3 5 
55 42 61 

_ 430 3 55 IX 
+2X0117X0 97X0 0.7 
+.15 1125 BBO 2.4 
+ 1X5 02X0 48 3 9 

+X0 11X5 7X5 4X 
+ XS 31 22X0 3X 
_ 4023 30 3.B 

+3 115 04X0 10 
+1X0 80 63.75 0.0 

... 1210 7X4 3.0 
+1 118 07X0 1.8 

_ 27X0 23X5 r - 
+1X6 28 1175 17 

— 28 18 IX 

+X0 3.60 2X0 1.7 
__ 7150 55 l.B 

+2X0 101 76 IX 

.... 81 63X0 32 

+1X0 5SX0 41 3.4 
+1 95 75 16 

.._ 22 15X0 _ 

_ 34X0 2fl IX 
_ 91 5180 48 

„ 7J5 6.90 182 
+.75 53X0 37X0 3.6 
+1 3175 78.23 IX 
+X0 2SX0 17 IX 
+1X0 SB 72 1.7 
+1 13G 87 1.9 

+1 20 1150 0.9 

•1 iwa 79 i.e 

+1 62X0 20-50 1.0 
-1 184 102 Z1 
+.75 58 43X0 1 6 

+1X0 52 2150 IX 

+0 490 350 3J 
+.75 43 33 _ 

+4 215 151 12 

+X0 00 44X0 4X 


10000 ra pin' 

Reams 


200 

155 

38000 


1000 RaedSli 
ranEn 


174315 
118801 
26418 

261600 

163530 nogc&c 
805089 FtoyBkC 
10400 RoyOak 

z ■ TOKYO - —oar ICTIWE aroenfe Monday. Jtma 13. 




FT nCE ANNUAL REPORTS SBTMCe 
ta cm umra out mmU ratn * c*m*** 
imn A. (bo 0(1 770 0770 a (■ am 770 
tag FT ran. * art* km *M UK. Al 

+44 ft 770 0770 ■ ta +44 (1 770 JSZt. «taig FT 

AN* ta Mra* rt ta ta « eta tatti ta 

» tag Hum mataarw nt ft Jmm ta ira w* 

MOW. 


1994 



Stocks 

Cloning 

Ctianga 


Tradod 

PHcm 

on day 

WWsW Hvy 

103m 

828 

+8 

Toshiba .. 

Q-Bm 

870 

+7 

Mtaebea — 

R3m 

800 

-24. 

IseM - 

5.6m 

502 

+22 

Kumagal Guml 

5.5m 

538 

+26 


LsN Har Hvy Ind 

Fuji Electric . — 

Fujitsu 


Nippon Vusen 

Kawasaki Hvy 


PadDwi 4X7*> 
& 


4.15 3.06 3X 24X 
5X2 4X6 10 _ 


_ Pumnco 
_ Plonbi 


3X1 


3X2 

564 


106 


PMPac 
_ Phitnc 
_ Pwfitd 
- OBE h 
_ OCTRs 
_ RnmBa __ 

_ RuUwai 115*1 

_ Santa IBS 

_ Snanttw mo 

q on 
Z7B 

103 

„ TOT 240 

TrtCON 4.14 

W llO llll SL30 

IV 1*10 114 




Z15 1X8 
Z43 1.02 „ _ 

362 2X0 6JJ 12X 
3X0 Z49 IX 
BXfl SXO OX _ 
4X0 2X5 3J „ 
0X0 5X4 4.0 _ 
1.74 1.15 6X _ 
6X6 4X0 OX __ 
7.13 ISO 6X 7.0 
4X2 3. BO 7.0 SX 
7.10 SXS 4X _ 
9X1 0.10 11 _ 

3X0 Z7S — _ 

3.70 3 7X Z1X 

2X8 1X1 — _ 
4.80 3.42 4X _ 
9X0 HD 11 _ 

8X0 8X8 IX _ 


INDICES 


US INDICES 


Jun 

13 


Jun 

10 


Jun 

9 


Htfl 


-IBM 


General (291277) 


jtj 201B1J6 203&25 25CM0 1SZ 1775890 204 FCflwISTZQ 


M CWftanKflA.’SO) 
M MWngn/li'KB 

Austin 

Cna* AMrapariMO 
Traded baaCn^i) 


2089.4 

1851.1 


ZD7GJ 2348X0 V2 
1054X 1130.10 3/2 


WRW 50 
904X0 BO 


CBS TVWa^nd 83) 
CtBMSnr End 83) 


42496 422X5 <17X2 4B0UB6 2 R 

109Z8 1084X2 1067X5 122225 1/2 


40120 6/6 
101128 BB 


EELS) 1171.91) 

Bead 

1(2971293) 


1484X8 1468X8 147154 1542X6 912 


(0) 30X4.0 29324X30204X0 106 3800X0 


iMtibttwra 

Composte* 0975) 
Pn1Uo§§ W1 631 


(u) 377171 371357 387S5B 18/3 

U 421050 419180 480998 23/3 

Oi) 195807 19*9X3 21S2X9 1/2 


I 20/4 
4105X0 20/4 


PGA Cm p 1/12X0! 

Dtatak 

dju B Kimj ansayi^O) 


>cx Ctawsanawi 

Franca 

SflF 250 pi/1 2/90) 
CAC 4001/1 3W1 


W 

37Z1B 

16915 


4 yd s 4536.1 4987X0 4/2 
37074 ranfifl 415JB 2/2 
17124 17343 OT2X0 V2 


1913X7 19M 
3001X0 4/4 


Q®. 40 (1/7/86) 

Norara 

(M) SEpxOP/l/Ba 

mHpdta 
irana Coop pn/fQ 
PDrtUBH 
BW (1977) 

mm 

! M-91UHZM/75) 


363X3 1* 
KBLIB W 


JS Gold (28/8/78) 
JSE ML (2BA/79) 
SmA Kona 
KrmCn*e<4flAar 


Mwspanznq 


1332X0 135871 13B175 15B67B 32 
1977.60 2020,72 202139 235183 W 


1332X0 13/6 
1ST7JB 13® 


FAZ (WWCn/II/SB) 
Comn*at«*<i'''2/sa 
DAX (30/12971? 


004,40 >ia73 811X6 B5BZT IM 

w/xin 22995 2302.7 M530 2ft 

2105. >8 213106 212952 2271.11 16ft 


17133 2/3 

22212) 2ft 

1 2ft 


SBC Gnanf (W4*7) 


VWMfr43»Sfi8r 



Mira SEpnnZTO 

HraaKnO 


82537 833X0 84008 11BUB W 


Hmo S«n01/7ftR 
SsEnUl979 


Bj 0111.16 919164 12201X9 4A 


«W7 2Sft 

B38M* 4ft 


Baokok SET pOWTS} 


Jttert* CDir«lO®83 


saOraaKWm 

Ml 

Baca CMm H (1973 
IB Genmi (Vlftt) 


41285 

483W 

180351 


41451 


4137.7 <28750 28/2 
48105 4S577 812X9 8/1 
180511 180251 S0BZ16 2 W 


3454X0 5H 
464X2 2B/4 


R0HJ7 

MSQvuuo/imn 


Jm 

Jm 

Juo 


-1094 

- Dow Jo— 

Jun 

JU) 

Jun 

IBM 

SncenqUm 

13 

10 

9 


Um 


10 

9 

8 


Low 

■N 

LOW 






hdustrtXi 

3773.45 

375114 

3749X5 

387136 

3SB33S 

3B7BX6 

41X2 

M 

238595 

2413X6 

2881.17 8/2 

1967X3 2DM 





(31 ft) 

(4/4) 

P1/1/94) 

(2/7/32) 






Horn Bonds 

98X7 

9671 

98X6 

165X1 

9143 

1B9J7 

54X9 

4283 

4327 

4305 

45490 31/1 

<17X0 5/4 





(21/1) 


(18/1083) 

(IftO/Bl) 

znx 

2747 

USA 

294X1 31/1 

26008 31/3 

Trangnt 

150826 

1605.17 

18)2X0 

188129 

1548X2 

1BSZ2S 

12X2 










CM) 

COM) 

(20/94) 

(B rrnzi 

2104X2 

2124X0 

2126X7 

243104 3/2 

2012X2 5/S 

UWtas 

186.13 

185X1 

18646 

227X6 

177 JB 

2SB46 

10X0 










(3ft) 

(120) 

(31/883) 

(9/4/35} 

1092X2 

105032 

1D48L53 

1211.10 £8/2 

1046X3 9ft 

DJ ta. Dart high 378168 C77183 1 Low 3739X0 (3721 .45 ) (ThecreltaX) 







Da/S hflh 3779X0 (3734XB J Low 3701X1 (374132 ) |Aen*S« 



290019 

2968.18 

wens 

330837 4/1 

2GD7X3 9ft 

Standanl and Poor. 
Cnmaalbi 1 458X7 

457X6 

457X6 

482X0 

MB 

48ZS0 

440 










p/a 

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Stock* 

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FINANCIAL TIMES TUESDAY JUNB.4I*., 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


IBM Hi W A CkH hp. 

H* inSM DBr * E TOO* Hga Urn W Ori* 

17%14%A« 0« U491 42 14% 14$ W% 

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0.76 15 189886 38% 30% *H 
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31 24% ACE Lid 044 1.7 41107 25% 24% 25% -% 


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21% 17% ABHM 052 2.4 

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31 24% ACE LU 044 1.7 
12% 10% KM GK BIX 1JH 9.7 


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31% 1B% AtMAe 3X0 115 11 4974 27% 28% 26% -% 

6% SAdws&p 018 25 8 18 5% 5% 5% 

20 16% Attain OlO 0X111 S 17 18% 16% •% 
57% 49% tagon ADR 295 58 11 12 S3 S% 52% -% 

05% 49% AataaL £78 5X 8 1821 56% 55% 55% -$ 

34% 25% AB3C 046 1.4 14 834 34% 33% 34 +% 

20% 18% Abram 086 45 12 982 19% 19% 13% +% 

4 1% Atom Inc 1 25 2% 2 2%+% 


044 4.1 13 23 

5 11 

060 £2 14 14 
036 4.1 2 372 


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14% Atom 1X4114 12 19 U16% 16 16% +% 

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101AVM8.16 6.16 7X 3 184 1M 104 

13% AbsfciMr 020 L3 8 581 15% ift 15% +% 

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13% ABbbIx 020 IX 418 15% 15% 15% +% 

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17% AlCuhr A OXB IX 14 202 18% 18% 18% 

25% ASttn 044 IX 21 980 27% 26% 27% -% 

19% AfcnAI 0X0 IX 43 81 39 24% 23% 24% +% 

46% /Unfit 1X0 1.714S 1271 58% 57% 

23%AM3mm 060 LZ 4 277 25% 28% 

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13% Aim Coax 016 OX 14 134 17% 17% 


25% 20 ASergan 
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04 0 1.7 15 548 23% 
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27% 17% Atom Cap 1X4 7.7 22 ITS 21 
10% 9 A6nc*S 0.18 IX 13 S 


27% 21% Aid MED 1X4 54 14 5 22% 22% 

40% 33% AtOE% B £7 IX 7 2827 35% 35% 

29% 24 AIM Op 088 3.4 18 417 26% 26% 

6% 4%A»ma 22 579 5% 5% 

27% 21% Mum 8 1490 26% 26 

62 64% Mm* 1X0 2.1101 4492 75% 73% 
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33% 26% Art** 1X0 £5 12 5394 23% 28% 

29% 24% AraGari 1.16 4X 25 27M 28% 28% 

9% 6% An Ent tax 077106 201 7% 7% 

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38% 34% BCE X 2X8 
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5% 3Btamcax 020 
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Cen ^nu9dMiWktpqM 




FINANCIAL TIMES TUESDAY JUNE 14 1994 


45 


NYSE COMPOSITE PRICES 


NASDAQ NATIONAL MARKET 


-t&ticfcseJjne 13 


IBM 

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020 0 4290 " ' 

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1.50 3.8 4 
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1.40 3 6 B 


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260 71 2100 34% 34% 3ft 

12 770 19% 19% 1ft 
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17% 17% 17% 
20% 19% 19% 
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25% 70VbtaR« 
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29% 20% MIS hd 
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938 29 11 1059 13% 13 >3% 

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14% llVSUWFood 
46% 30 Superior 

40% 30% sum 
20 11% SUB Cm 
21% 18 Swiss Heh 

27% iftSynMTec 
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I 

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924 46 8 528 6 5%*- 6 *% 

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1J0 25 IB 1B7 — “ ' 

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936 19 14 14 12% 12% 12% 

918 05 22 2062 33% 32% 33 

088 28 121111 32% 31% 32 

016 1.2 16 421 14 13% 13% 

006 04 86 20V 19% 20% 

48 319 24% 24% 24% 

920 15 10 85 ft 8% B% 


29% Z3VUUBHn 
B 5% URS 
51% 47% USFSG 4.1 
36 20%U86 
29% 23% UBT 
51% 49% USX CUmPf 
15011ft UU. 

1ft ftUOCMm 
24% 19%UaCup 
11% 8% UNCtac 
27 20% IMP he 
17% l4%UnMstx 
74% 50%UnB*r 
120%IOD%IMM 
50% 4ft UMUrop 
2ft 21% UnCarb 
13% 10% (Man Cap 
54% 45 ltd 360 
87 561*8450 
39% 30% IhBacx 
67% 55%Ulfaex 
28$ 23% UHdnFkM 


- u - 

98* 26 20 1078 _ 

34 38 ft 

4.10 82 13 49% . . 

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1.12 46 181214 Zft 27% 

3.75 76 20 49% d48% 

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13 244 8% 8% 

958 12 16 918 25% 25V 

910 96 17 32 ift 16% 18% 
280 46 6 2 61 61 61 

454 4.4 15 864 10ft 102% 103 
156 36 66 1194 48% 47% 48 

aTS 17 27 3290 27% 27 27% 

16 3 10V 10V 1ft 

350 7.3 7 48 47 48 

450 7.4 710 61 01 81 

238 7.3 11 286 32% 32% 32% 
1.80 28 18 2383 57% 57% 57% 
084 10 10 342 28% 28% 2ft 



JM «Z*4 41 5p 4S»« 

187 48% 47% 48 

54 fl% 8% 8% 
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23% 11% SyrtB* 
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1.04 45 12 6510 23 

936 14 213151 25% 24% 


1ft 

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28% TCFFtaaic 


’ 34% TDK Corp A 
2% 1% T ISMRje 


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920 36 22 111 


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1.00 29 T1 66 35% 3*^ 


ft 


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208 ft ft ft 

10 4ft 48% 48% 
14 1% 1% 1% 


22 ift UdoPTexas 020 1.1 53 1435 1ft 1ft 


2% VlMdFu 
16% lOVMqc 
3% 2%UoBCorp 
41% ZftURMpset 
15% 12VUd0do6Pj 
22% iftUUDdsM 
50% 37% UaMtero 
40 33% lOttnux 
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932 1 7 53 *82 19% 1ft ift 
068 93 713070 23% 21% 23 *1% 

114 51 37 4409 42% 41% 41% 

1.80 17 18 06B 6ft 66% 88% 

992 56 13 » 14 13% 11 

28 157 18 1ft I! 

992 17 15 141 33% 33% 

166 96 


4£ 36% HMka 
15% ft MUHflffl 
ftHWDg 
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24% 1ft WectDKna 
34$ 26% wan Rea 
15% 10$ WasB 
5$ 4% HbtrorCDal 
20 13% wan Utah 
20% iftHMpacx 
38 29% WsHcox 
51% 39% Wyifar 
21% 17% Wftwfetrt 
1% 52% WMrfpl 
1% 11% WMHBl 
17 14$W)«nxix 
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33% ZftWWiftBi 
18$ 15WhHO 


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12 2491 11% 11 11_ 

55 1372 13% 13% 13% 

920 97 22 280 28% 28% 2ft 
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052 6* D 7100 5 5 5 

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160 18 16 3319 42 3 
0.10 95 22 2091 191 
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13 15 92% 

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1.44 32 14 142 45 044% 

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131 56 14 B70 25% 25% 

1.78 90 11 54 29% 23% 

940 25145 16 16 16 


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42 42% 
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30% 22% WMXT 960 12 29 4568 28 27% 27% -% 

918 08 12 149 20% 2ft 2ft ' 
1.15 75 3 27SB l< 

120 78 9 IS 

- _ 14 103 3 . _ , . 

53$ 43V mtfn 94B 16 33 216 50% 50% SO 

20% 16$ MfytoUBorx 923 1.6 19 112 17% 17% 17 

22% iftWymskl 944 26 13 157 22% 21% 21 s 


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2ft 123 

1B% 14% MorUWde 
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104$ 87% Xerox 
54% 50ftns4.12S 

52% 4o am cap 
25% 20 Yankee Ew 

40 33$ mm *1 

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13% 72MDB 
24% 20% Term NO 
7$ 8% 2WO( MG 
1ft ll%&ro 
29% 20% ZUm hdx 
13$ 12% 2 W«q Fund 
10 % ftZwdp-Mix 


360 26 
4.12 76 
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1.00 4 3 

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1.16 92 
984 90 


44 112310ft 102% 
3 54% 54% 
22 420 51% 5t% 
12 21 E% 22% 
18 338 37$ 37 

239 4% U4% 

3 1708 9% 8% 
8 730 23% 23% 
66 7% 7% 
15 20 12% 12% 

18 65 21% 21% 
406 12 % 12 % 
300 9% ft 


103 *% 
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23% 

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12% 

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76V 17% LkMCbp 
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930 30 
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31 1 1ft 10? 1(/S -V 
1% 1ft 18% 

28 27% 274 



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AMEX COMPOSITE PRICES 


4pmctoseJUie 13 


P/ Sis 

Stock Mr. E 100s 
AMMdon «00 2 

Nfitllrc 3:100 

upnatvi ? 40 
Amur Pu 1.04 12 1100 
HtiOta AxOMlUlS 69 
Amdahl 006 2 717 
Am End 2 245 

AnpoMmA 43 27 
ASflOre a 72 1 215 
Afflcftcti 23 12 
Atari 6 851 

AUasCMB 1 432 
AndkmA 6 1017 


MgB Low Close COng 

12 12 12 
1% 1% 1% *it 



Bownex 
Brasean A 



QKpRO 2 40 % d% % -i 

Camomx 020 13 3 22% 22% 22% 

3 1ft 1=% T2jj ^ 

S 


Can Marc 028 22 
asnbrsA 061 5 461 2$ U2J 
QatMro 5 16 2$ 82; 

Champion 47 97 32% 31;, , 

CMtas 2411457 5% 4{J 4$ •% 

CWB 004 24 203 9$ 9% ft - l 2 

CnhIFflA 061 48 ft 5V 5% 




n as 

sack Dts. E 1001 him UmCtaa I 
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Oompunc 1 182 

Coned FM 5 2 5 8 8 

CroesATA 064554 IDS IS 

Crown C A 040 43 8 IS 

Croon C B 9*0 14 7 IS 

Outdo 953 84 12 IS 
Q*um«x 14 4 

DllMta 15 198 li% 

Dhnark 29 G2 18 11. 

Duconxnun 10 12 5 \ 7 

DiR*» 948 9 304 9 OB’} 

EaetnCo 9*6 15 13 1ft 16% 15 

Easqroup 1.72305 42 20$ 20% _ 

Echo Bay x 067382 2134 10$ 10% ID,. 

EcUEnA MO 10 22 12% 12% 12} 

EMBtatb 6 8 8 7% 73 

Ban 17 1036 37% 36% 38? 

EngySer* 50 2481 

10 184 



Feb mds 
Fha A 
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nuwu) 

Forest La 
Freopency 


OHmFdA 

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Bradman 
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120 IB 
020 13 
952 80 
29 
2 

980 7 
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970 36 
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2 & u 32 31 % 32 
635 48 $ 48 V 48 $ 

5 4 4 4 

18 23 % 022 $ 23 % 
868 20 %dl 9 % Iflf 
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HanCMr 351498 .6% 5$ 6 
Haabra 028 14 6316 32d31% 31% 



P/ St 

Stack Mr. E lOQx um Ckn Chng 
HetBhCh 4 10 ft ft ft 

Heaotiw 3 313 u3A ft 3% 

HelCO 915 48 29 Ift 10% 10% 
HxnankmA 14 31 1D$ 10% 10$. 


KHCmp 


1 208 5% 


IK. Corns 


Jan Sal 
Kstema 


kakDbCpx 912 2* 38 9$ 9% 9$ 

4 K7 4% 4% 4A -A 

S3 1U 19 1ft 18% *V 

066 184602 17d1B% 16% -% 

4 393 ft ft ft -% 

20 20 13% 13% 13% *% 

NnaACp 19 17 4% 4 4%-% 

KMrExp 21 90 18% ift 10% -% 

KoipEq 7B 117 9% 9$ ft -% 

Labaiga 10 56 1% d1% 1% 

Inner Inti IS 356 5% 8 6 

In Piarm 7 12 1% 1,$ lA , 

Imam he 177 51 10$ 1ft 10% +% 

Lynch Cp B 3 28 25% 26 

Mauxam 2 27 36 

UadhA 944 28 143 28% 

Mam co 920 6 tG 

mu 18 

MnogA 13 S 

MSHExpl 68 10 

Hat PM 7 178 

HYTmA 9S63481035 

MtlCanOtx 920 10 12 

Vjmaef 122 13 

NW 12 10 

OdedcaA 34 135 u9% dft 9% 

OWn 924148 SI 31% 31% 31% *% 

PegseuaS 940 88 787 15$ 1 5% 15$ *% 



3V 3V 

a% fiS 


Stack 

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MHtfi 

PMLOx 

PWwayAx 

Ply Gera 

PMC 

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RUdaEnr 

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Smnuuon 

SttriB 

Hind 

Tap Freda 

TeODSax 

Thomeda 

Thrnaahx 

TOMA 

TownOfty 

Tran 

Tidnslfes 

TureM 

TurreSifi 

UdFbadsA 

UtfoodA 

UnWPma 

USCeU 

vtacomA 

ir unnir 

maCMiu 

weatetd 

westerner 

WHET 

Women 

Xytronix 


ft sh 

Ml E lOOt Hgb 
988 47 » 11% 

164 12 8 23% 

924 18 201 68% 
950 20 9 37 

912 7& 652 22) 
992 17 42 7. 
910 1 460 1 

31 2 29% 

3 128 6% 
OzlOO 1$ 

2.10 10 3 36% 

16 85 18 

064 12 416 11% 
21 87 

020 52 3 . 

936 81 445 41 „ 
68 77 15% 

32 376 30% 
020 21 131 15% 

1 153 2% 

10 138 1ft 
7 11 ft 

907 67 3* 18% 
067189 243 1ft 

5 30 reft 

920112 7 ZV 

18 43 B% 
100 210 2ft 

11 383 33V 
1983 3ft 

28 3239012% 
060 84 313 28% 
1.12 20 102 14% 
0L6O T3 68 29% 

4 44 4 



2 % 2 % *£ 
| Sc j. 
SS 

32% 33% *V 
30% 38% -% 
11 % 11 % 

28$ 28% 

14 14 -V 

2fta% ft 

3% 4 *% 


GET YOUR FT HAND DELIVERED IN COPENHAGEN, 
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,vrri.-. mil liftiaM 





n 

BDCH tax. E m MM taw urt Eb| 
ABShnax 020 20 3 15% 15 15 

ACCCUtp U1Z 71 ITS 17% 16% 17% *% 


20 7819 15$ 1ft 15% *% 
181196 22% 21% 21% *% 
Zt 13 H% 19% 2^4 +% 
16 2541 17$ 16% 16$ -$ 
324591 3^2 38% 39 4 
20 ISO 1ft 15V 15% +V 


•1 

■*% 

ft 

-V 

-V 

ft 

*1 


AcdeknF 
HcrapIMt 
AOdomCp 
Mepteh 
ADC Tele 
Mdhgtan 

AdtaSenr 918 21 72 35% 35% ^ 

Adob* Sya 920 22 1447 27% 26% 27 

Mnrac 7 353 7ft 9$ 1ft 

Adv Logic 8 1l» 4% 4% 4% 

AdvPutym 7 27 5$ ft ft 

AMTdinh a 518 14% 14% 14% 

Aduaaa 920 20 905 36% 38 39% 

Allyim 9 83 >3% 12% 12$ 

AQBCl Re 21 375 12% 12% 12% 

A0J*»& ai0129 177 11$ 11% 11$ 

Map 020 16 843 24% 23$ 23$ 

Alt» AM 224 20 206 58% 56 55 

AWfflCp 36 460 25% 2ft 25% 

AhSU 088 17 208 25% 24% 25 

Aaegh&W 15 2 8 B 8 

AhaiOrg 052 15 nOO 37% 37% 37% 
AbnPti 5 215 10% ft TO 
AUCapI* 160 12 218 14% 13% 14% 
AUCapx 080 12 100 14% 14 14%*166 
AtortBC 932 20 25 3 13 3 

Ate Gold 006 8 131 1j] iji Ijj *Jz 

Altera Co 2811356 30*4 28% 28% -1% 
Am Banter <0.77 8 1010 22$ 21$ 22% +$ 
AmCtyBu 14 30 14$ ift 14$ -1$ 

Am Haag 221423 23$ 22$ 23$ *% 

Am Mad B 14 394 9$ g% 9$ *% 
AmSoftwa 932 17 776 5% 4$ 5% ft 
Am Fnwye 34 289 20% 19% 20V ft 
Am&tt 080 164146 28% 28 28A -ii 

ArntdP 1 3034 1$ 1 l£ ft 

AmlttD 260 7 361 47%d48% 47% 
AmPwrCom 37 4362 21 19% 20 -1 

Am Dm 10 338 13 12% 13 

Amgen tnc 17 5487 46 4ft 45% 

AmvctlCp 006 21 1609 15% 15 15$ 

Amvfln A 27B 9% 8}2 9,‘c 

Anaemic 15 30 17% 18% 16$ 
Andyfls OA8 14 11 16% 1ft 16% 
AnangdAm 1X0 14 55 17% 17$ 17$ 
Andrew Cp 21 2497 37% 37 37% 

Andres An B 137 isV 15% 16 *$ 

ApognEn 030 25 79 1ft 12 12% 

APPBto 81007 ft 5$ 5$ 

AppWItat 26 7371 41% 39% 39$ 

ApplaC OA8 24 8078 27 A 26$ 27 

Apptebeaa 904 37 1348 15$ ift 14$ 
ArtxirDrx 024 42 1228 19 1ft 1B$ 

Arctcp 028 22 172(00% 29% 29$ 
ArgoroA 1.15 7 35 27% 27 27% 

Armor Al 084 21 52 21% 2i% 21% 

Anted h 940 18 19 19% 19 19 

ASK Op 3 2430 1ft 13 13 -JJ8 

AspacTTel 24 512 27% 28% 27 

AaatcComm 288 29 26 2ft 28 +1% 

AST Until 91911 15% 15 15A ft 

ABttecffi 16 63u1DV 9% 10$ ft 
AflSEW 032 20 1009 27% 26% Z7 -% 

Autdsk 048 19 1985 50 48% 48$ -$ 

AutnWh 12 78 4 3% 3% -$ 

Awnted 092 IB 159 ft 8$ 8$ -$ 


-A 

ft 

ft 

ft 

ft 


-A 

ft 

ft 

ft 

ft 

ft 

ft 

ft 

■V 


El Bx 


BafcerHWl 

BttvJ 

BMMlB 

Banctec 


Bay View 
Bnytmks 
BB&T Fin 
BE Aero 
BeauSOK 
BenSJeny 


- B - 

008 94 43 8 d5% 5ft *A 

10 36 12 11% 12 

SO UA <& A 
006 11 832 18$ 18% 18J3 +& 

024 3 3 14 14 14 

IB G2B 22% 21% 21$ ft 

BnkSouthX 044 11 209 18$ 18$ 18ft ft 
BankasCp 040 10 21 19% 18$ 18$ ft 
Bantawdi 000 13 14iu22%21% 22 ft 
BantaGeo OS 16 538 33% 32% 33V ft 
Busan F 080 IB 21 28% 28 28% ft 

060 14 435u26% 25% 26 *% 

140 14 2121 63% 63 63% ft 

108 B 428 30% 29% 30% ft 

22 1040 9$ 8% 9$ ft 

028 32 50 15% 14% 14% ft 

15 773 17% 16 16 -1 

BerMayWRx044 15 102 *0$ 38$ 40 ft 

HHAQp 91213x100 9 9 9 -1% 

Bite 93 69 4$ 4% 4$ ft 

BlgB ai6l 6 67 11$ 11% 11$ ft 

BaxflayWi DOB 13 536 12% 11% 11$ 

Bngoi 34 2542 32% 31 31$ 

Btornet 171234 10 9% 9% 

Bo* Dip 1.04 11 119 30% 2S% 30 

BMC Snow 16 1874 52% 51 51% 

BoabnmS 184 112065 34% 33$ 34 
BobExans 027 19 540 21% 21$ 21,$. 

Boole SB 15 30 30$ 30 30 
Bated 32053 9 B% ft 

Boston 8k 076 5 300 32% 31% 32 ft 

BostanTe 451561 10$ 9$ ID ft 

Brady* A 086 18 6 46% 4«% 46% ft 

Brencox 920 27 235 12$ 11% ri% -A3 

BnmoS 034 17 449 8 7$ B 

BS8Bnep 076 9 9 28% 27% 29% 

BTStesmg 0.48 6 6 3 3 3 

Buffets 28 941 19 3 : 19 19 

BuKkreT 23 155 14 13% 13% 

BlXT Bnxtl 31 202 9% B% B% 

Buteeaafl SB 44 32 d3T 31 

BuBaAKg 6 103 24% 23$ 24% 


♦ 1 
ft 

-V 

ft 

-1 


- c - 

CTec 183 132 25$ 25% 25% ft 
Cabotued 0 231 8$ 8 8$ 

Ca&cnwps 187 15 70 27% 27% 27% -% 

tedmusCtaraMO 21 820 18 17% 17% -% 

Caere Cp 1251235 7$ 7% 7% *% 

Catena £25 8 >124 13$ 12$ 13$ 

Cal Micro 21 383 23% 22% 22% -% 

CamtxBJo 1 1035 1$ 1$ 1,1 

CandataL 1 3 3$ 3$ 3$ 

dates 1 60 2$ 2 2$ ft 

Canon he 050120 4 uB7 67 87 ft 

Canada 2 34 4 3$ 3$ 

Gardrte 012 IS 144 46% 46V *6V 

CarttenCm 061 21 18 26$ 26% 26% -$ 

Casads 960 19 20 20$ ZD$ 20$ -$ 

Caseys 005 17 309 12% 11$ 12 *$ 

Catena 5 418 7% 6$ 7$ ft 

CeUar a 334 19% 18$ 19$ 

caxcp 20 10 HI 2% 12 12$ *% 

CantexTd 77 139 10$ 10$ 10$ 

Ceruocor 5 7703 13$ 12$ 12$ -II 

CntrlFIdx U12 12 345 33% 33 33% +1% 

CrtrtSpr 23 2100 11% 11% 11% 

(Under 8 5 4% 4% 4% ft 

Chapter 1 060 B 68 22% 22$ 22,% ft 

ChrmSh OJS 14 3830 10% 10 I0>e 

Chamdagn 42 47 u8% Bft 8% 

Chemtab 15 85 10% 10% 10% ft 

Chemto 1 290 % d$ % 

Ctampmu 12 10 3$ 3$ 3$ ft 

CbpsOTa 81178 4% 4$ 4$ 

CNronCp 62 1755 64% 64 64% -% 

Cte Fin x t2B 12 647 54 53% 53% *jl 

QntaeCp 017 31 426 32% 32 32% 

Omteoj 31 8540 30$ 29$ 29% -1$ 

CETreh 121 674 2$ 2, 7 C 2,1 ft 

1218281 23% 22% 22$ -$ 
U» 16 48 28 28% 28% 

26 S3 8 7% 7% ft 

41 Z100 12 12 12 ft 

8 208 

GocaCotaB IDO 17 125 28 27% 28 -ft 

CPdaEegy 


CQBancp 
CteerHx 
Ohs Dr 
Ckdttsmi 


8 7% 7% 

12 12 12 

4$ ft *$ 

28 27% 

1221339 116$ 6$ 5$ 
GOdBAtam 27 m 10$ 10$ 10$ 

Cognac* 2*1780 IB 15 15% 

CDgnot 104 6 11% 11% 11% 

ClItelM 15 94 13% 12% 12$ 

Odagen 80 2297 22% 19% 20 

COUGH 156 13 SB 21 20 21 

CoHGrp 080 B 133 Z3dZZ% 22$ 
Com* 02413 MAS 19% 18% TO 
Cracatt 009 191637 19% 18% 18% 
CmcstASp 009 392074 18% 18$ 18% 
C u mm a t aleO HS 11 59 32% 31% 31% 

comma 070100 19 IB 18 IS 

ComsxLflbi 375 332 11$ IT 11% 

Gdntfore 54 22 13 12 12 

CnratocMR 38 465 3$ 2% 3% 

CdOPap IJB 26 339 39% 38% 39% 

Garaam 7 107 7 8% 6% 

Cana* im lB5025u11% 10$ It 
COrtdCd 32 38 17 16% 16$ 

CnblDab 15 284 10% 10% 10% 

CaaxA OH) 18 305 19$ jfl% 19% 

Capytete 85 117 10% 10% 10% 

Con& Cp 222140 49% 49 40% 

Coro or A 43 559 16 15% 15% 

a*torBxUB!2BY174 24% 23% 24 


Cray Comp 
Crown Am 
Cpogei 


0 2288 1% ft I* 
38 100 5$ 6$ 5$ 
31050 5$ 5$ S% 


- D - 


N a* 

Steak Dh. E Mte Hpk Low lot Oag 

Deb Strops 03) 20 108 6$ 6% 6$ ft 
DekatsEn 033 23 BO 15% IS 15 
DekaA Ge MO 45 2 30% 30% 30% 

DettHUte 0.44 11 2 21 B 21% 21% -% 

Del Comp 29 8530 28% 27$ 27$ 
DefaCSm Die 18 S3 15% is 15 
Ontply 33 428 39 38 38% -$ 

DepGiyx LDQ 8 218u3l$ 3i 31$ ft 

Oevftn 020 4 10 ft 8% ft ft 

DH Teen 17 2SU21% 21 21 -% 

WrdB OBD 84530 17% 16% ift -% 
OWW 15 748 16 15% 15% *\ 

Dig Ucn G 449 12% 11% 12% 

1$ Sound 6 21 1% 1$ T$ ft 
DfcSytf 7 112 3$ 3$ 3$ -% 

DterwCp 15 60 33$ 33% 33% -% 
DM8 Vm 020575 200 10 9% 9% 

UNARM 2 972 4% 3$ 3$ -V 
DeavGn (WO 241515 24% 24 2ft -ft 

Don* HB 068 14 30 13% 1ft 1ft ft 
DreeoEngy 11 777 8% d?% ?% -$ 
DraasBoni 11 7*5 10$ 10$ iD% *% 
(key ED 024 20 373 24 23% 23% *% 

Drug Empo (US 51 81 5$ ft ft ft 

D5 Bancor US 10 3?5 33 31% 33+1% 

Durtrnn 042 12 901 ift 16% ift -% 

Durr Fin 030 24 8u33% 32% 32% 

DlMtedl 7 573 21 19% 21 +1% 


- E - 

5 13 4% ft 4% ft 

2136? 4% 4 4% ft 

3 170 1$ 1% 1$ *£ 
01B 24 4432 1 9% 18 1B% 

241 776 7$ d7% 7% 

2 199 2$ 2,1 ft 
10 216 10$ 10$ 10% 

089 47 15 46$ 46$ 46$ 

19142B4 17% i(16 18% 

22 £465 7% 7% 7$ 

17 1442 ft db ft 
40 345 11$itn% 11% 

87 5 2$ 2$ 2$ 

2 342 3$ 2$ 3% 

010 15 60 « 3% 3$ 

048138 5009 50% 48$ *8$ +1$ 
3134 7% 07 7% ft 
70 27 15% 15% 15% 

20 4372 16$ 15% 15% 

9 40 8% 7% 8 -1-% 

16 76 22% 21% 21% 

010 22 171119% 18% 19% 

20 6< 13 12% 12% 


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EsCteRK 

Ed Tel 


BP&oB 

Bec&Sd 

BecdxB 

BadAni 

EmcoiAaa 

Ermtex Cp 

EngyVtxra 

ErMrSvG 

Ena® fee 

BjurtyOt 

EdcsnB 
End 
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Bobyte 

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EddaBte 

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nos 

21$ 

x$ : 

20$ 

-1 

Dart Grtu 

013 18 

3 

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07* 

74 


OmjSwai 

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239 

2$ 

2% 

£% 

ft 

DateAra 

33 

289 

(* 

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*% 

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- F - 

M6m 11 4 4% 4% 4% 

FarrCp 02* 12 49 4$ 4$ 4$ 
Fastens! 004 52 7B2 33% 33 3ft 

HFU 154073 24% 24 24$ 

Ffentea 3 174 3$ 2$ 3 

RAM 108 161263 U55 54% 54% 
RltyOO 6 919 4$ 4 4,', 

H99BA 024 0 an 11$ 10$ 10$ 

FBenet 30 1 716 22 21% 21% 

FstABSnte 120 1Z 1652 3S$ K$ 35$ 

RretAn 084 8 148 34% 33% 33% 

FMBcOhfa 100 11 707 26 24% 25% 

FdCgBk 080 21 478 24% 24% 24% 

FMSecty 104 11 1180 u31% 30% 30% 
FatTWniL 168 10 4737 u4S% 44% 44% 


Fd Waste 036 7 24 8tf B$ 63! -^ 6 

FatfedMc 052 7 495 24$ 24% 2ft -A 

Hreilerx 1^8 11 6 47% 47% 47% -% 

Hreteda 44 606 7% 7% ft -ft 

25 213 20% 20% 20% ft 
ftoU IB 186 6$ ft 6$ ft 

FoodLA 009 163523 6$ 5$ 6 

foodLB 0098121233 ft 6 ft 

Forante 108 ID 185 32 31% 32 ft 

Forectner 13 4 13% 13% 13% ft 

PuneBanc 030 33 474 3*$ 34$ 34,% 


Foster A 

Mfi fin 

FstEaan 

FstFUx 

FMHaM 

FUerHB 

FuaonFti 

Furon 

FutmadAOR 


38 54 3% 3% 3% -$ 
10* 12 510 30 29% 29% -% 

1.12 38 17 »% 26% 26% 

040 B 562 16% 1B% 16% ft 
1.18 11 428lCa% 27% 28% 

058 2* 660 37% 36% 37% ft 
054 11 IBiffl% 21 21$ -$ 
024 18 294 14% (71 4% 14% ft 
45 5% 4$ 5% 


- G - 

8 23 4% 


4 

14 13% 

3$ 3 

3 ? a 3% 

6$ ft 
16% 16% 16% 
u5 5 5 


4% ft 
14 +% 
3$ 


3$ 

ft 


GIApp 

GMSenrx 007 21 T14 

tamos 0 22 

Garnet Rs 11 812 

Gate CO 0.16156 142 

Beni 8tad 040 17 6 

Gartyta 19 12 

GenalaPli 4 858 12% 12 12$ 

Genoa Cp 400 41 379 25% 24% 24% 

Govs tec 133 55 4% 4 4 

Ganyme B8 M7 29% 29 2ft 

Oxana 040 ID 602 17$d17$ 17$ 

112 17 545 23% 22% 22% 

080 17 81 16% 15% 15% 

11 29 ft 5 5 

17 670 14 13% 13)2 

GoukfePmp 080 19 740 22% 21% 22% ft 

33 40 2$ 2 2 

artte 020 78 168 23$ 22% 

taaenAP 024 11 42 19 18% 


GUdhosL 

Q*»n A 

Ssti Btom 
Good Guys 


-$ 

-h 

ft 

-% 

-% 

ft 

$ 

-$ 

ft 

-% 


BmwdiPb 


SmdWfe 

GDI Cap 

GVKYStg 


HardtegA 


23 -% 
78 ft 
$ 

3 ft 


0 425 ft $ 

1 888 3 2% 

687 83 13% 13% 13% ft 

7 113 11 10% 10% -% 

51600 09$ 9$ 9% ft 


- H - 

6% ft ft 


56 Z100 

tt&JHyWx 084 8 28 22 £1% 21$ -$ 

taper Ep G2Q1* 123 15% 15 15% +% 

raagCo 018 25 2985 30% 29% 30 ft 

18 1700 20% 19% 20$ ft 

008 21 178 12% 12$ 12% -ft 

HeaBMyn 8 227 ft «$ 5$ ft 
13 144 ft ft 8$ -% 
016 27 1B13 16% 15$ 16$ ft 
HekJmi 43 11% 10% 11 +% 

HeteoTroy 8 138 15% 14% 14$ -$ 
Hertte 072 16 418 24% 24% 24% -ft 
Hogan Sys 015 31 296 10$ 10V 10$ ft 

Hdnglc 50 307 11% 10% It ft 

Home Sent D» 8 4 20% 20% 20% 

HQme Ofce 072 25 251 u21 ZO 2D% 

Honkte 044 21 210 30% JB% 30$ ft 

Honbeck 15 567 14$ 14$ 14$ 

HoraWss 044350 4 3% 3% 3% ft 

tat JB 020 18 728 ID 18% 18% ft 

taAngmx 030 11 993027% 9% 73ft -it 
taco Co 008 0X100 2$ 2$ 2$ ft 
tachTech 53 1184 337} 32% 32% 

HycorBo 19 B9 5$ 4$ 5 


FRS)8 

OBCnixna 
PS Intel 
Minim 
(mmunopen 
Import fie 

MBatro 1.1B2D 523u*l% 4141$ 
024217 15 15% 1ft 15% 

17 975 14% 14% 14% 

T9 5640 17 15% 16% 

066 15 131 11$ 10% 11 
308648 2ft 25$ 2ft 
29 50 12% 11% 12% 

ID 474 3$ 3 3% 

024 1117667 60%5&24 39% -AO 
7 119 2 01% 1$ 

032 29W1 17%«IB$ 17 ft 
21 an 9% ft ft ft 

024 18 115 12%d12% 12% ft 
34571 6$ ft &% 

7 717 ft 6 6% 

4 231 12 11% 11% 

147546 9$ dft ft 
TO 170 16% 16 TO 
006 26 11 3% 3% ft 
431 <78 ft ft 8$ ft 
001 18 26 27% 27 27% -% 
1 157 2% 2% 2% 

16 410 18% 18% 18% *2 

ItoYatedo 7.17 38 8 208208% 20B-i-1% 


51 

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22 

9 

8% 

8V 

ft 

£325440 

B$ 

7$ 

ft 

ft 

5 

832 

6$ 

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32 

71 

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5% 

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ft 


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WRoa 
M Total 


ft 

-1 

ft 


- 4 - 

J&J Snack 18 307 14$ 73$ 13$ ft 

JamiBc 028 16 ISO 11$ 10% 10^ 

AG ted O>0 27 774 3£% 31 31% ft 

Jansaiw 60 51 24 23% 24 ft 

Jones W 10 8 13$ ift 13$ 

Janes UtefxO.10 17 416 11% 11 lift -A 

JadynCp lZtll 50 25 24 % 24% -ft 

JGSFte 064 16 1148 (126% £5% 26% ft 

Jure Kg x 028 191031 1ft 16% 18% ft 

Jullln 016 9 IBS 1Z% 12V 12% ft 


n Sa 
£ MO. 


Un UH Ctag 


-K- 

KSress OJOB 12 41 £3% 22% £3 *% 

KamoiCp OM 5 202 9$ 9$ 9,£ 
KsyuonCp 0^0 12 927 20% 20% 2D>j ft 
KafcyOJl 79900 8% 7% 8 ft 

KelyOv 073 22 135 28% 28 26% ft 

Kertudiy 011 10 18 6% 6% ft ft 

Maui 084 13 2 24% 24% 24% 

fasdmer U 12 7 6% 7ft 

Itt* Aar 49 105 38% 35% 36 -% 

MmAcdge 4 425 9 ft B% 

IMA D 950 A 0% % 

Komagtec 188 2375 21% 19% 20% ft 
KuBckeS 9 £23 147g 14$ 


- L - 

Ladd Am x 012 47 275 8% d8 8 
Lamlteeh 30 2417 26% 26>2 2ft -1 
Ureexter t Qfia 21 225 4ft 47% 48 *A 

Uneetnc 09E1B 87 TO% toto% ft 

LandrofcOph 37 1 049 29% £7% 291, *1$ 
Lsnoptlcs 10 135 7% 7$ 7$ 
Lasoscpe 61 211 5$ 5% ft ft 
LatntnS 15 1806 18 17V 18 ft 

UtnooPr 048 17 3B9 23% 22% £3% +% 
LOOS 135 8212 17% 1ft 1ft -1 

USCp 016 2 24 5% 5 5 -% 

Lectors 15 396 12$ 12% 12% 

LBgantep 182086 30% 29% 30 -% 

LWyWBc* 078 16 420u33V 32 33% -t-l 

Ufa Tech X 020 16X100 ia 18 id +.70 

Lifeline 22 54 *% 4% 4% 

UByteMx 028 13 350 14% 14 14 

UnBr 10Q 45BtT9%ll7%116$ -1$ 

Locate T 052 14 181 15 14% 14% ft 

UrotaatM 13 108 31% 30% 30% -% 

LteearTec 024 36 2686 45% 44% 44l 2 -$ 

LkfJBm 0*0 17 62 35% 034 34 

Laewen Gp 4006 28 128 24 23$ 23$ 

Lana Star 22 126 7% 7$ 7$ -$ 

IjdwsD 4117293 53% 50% 51% ft 

LTXCO 1 660 2% US 2% ft 

LVW 035 4 6 31 30$ 30$ 


- M - 

MOCmx 005 £113362 24$ 23% £3% -A 
(Star's 18 159 21% 20% 20% -% 
Macllte 060 41 124 13$ 13$ 13$ -.18 
ItadiaonGE 1J6 14 65 33% 32% 32% -% 
Magma Pmt 13 381 29% 28% 29 

UspnaGrp 076 12 731 19$ ift 19% 

Mai Box 12 125 8% 8 8 ft 

MarcamCp 31 281 11 10% 11 ft 

MarteeDr 13 2835 5$ 4% 5$ ft 
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UarquM 0 361 1% 1$ 1 Q ft 
totta 20 506 ft 8% ft ft 
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Maxteltel 41 1130 54 52 53$ +1$ 

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McQraDiR DM 12 3 ift 1ft 1ft ft 

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MerMV 912573 ift 9 BA ft 

MettilktaA 00615 31 15% 15 15% ft 

MctaNF 020 16 340 11$ 11$ 11% -ft 

MfcflNalB £003471183 79 78 76% -1% 

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Manage 165717 21% 21 21 ft 

Mfcrocom 5 338 8 5$ 5% ft 

Mografx 163535 6% 6$ 6% ft 

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46 



WORLD STOCK MARKETS 


FINANCIAL TIMES 


Tuesday June 14 1994 


AMERICA EUROPE ^ . 

Strength in Suez weak on CU deal as Paris hits 1994 low 


a 


cyclicals takes 
Dow higher 


was 


Wall Street 


US share prices stalled yester- 
day morning, but cyclical 
issues were strong enough to 
carry blue chips modestly 
higher, writes Frank McGurty 
in New York. 

By 1pm, the Dow Jones 
Industrial Average was 8.72 
higher at 3,782.17. but the more 
broadly based Stan- 
dard &Poor’s 500 was only 0.29 
better at 458.98. Volume 
remained Light, with 117m 
shares traded by early after- 
noon. Declining issues led 
advances by 955 to 95L 

A decisive trend also flailed 
to develop on the secondary 
markets. The American SE 
composite edged 0.32 lower to 
441.52, while the Nasdaq com- 
posite dipped 0.15 to 734.10. 

It was yet another session in 
which many investors pre- 
ferred to watch and wait for 
more clues about the economy. 
The release of May’s consumer 
price index was generally 
viewed as unthreatening, bid 
an unexpected jump in core 
prices, which exclude the vola- 
tile food and energy sectors, 
could trip up the market later. 

Friday's producer price data 
had brought a mild surprise, so 
bond traders were taking no 
chances. Treasury prices were 
moderately down, restraining 
the mood among equity inves- 
tors. However, economists 
were attaching more impor- 
tance to tomorrow’s report on 
industrial production, business 
inventories and capacity utilis- 
ation. 

The data was expected to 
show the economy continuing 
to grow at a stable pace. Such 
news should have a favourable 
impact on stocks which are 
likely to benefit from healthy 
growth. 

Cyclicals were showing signs 
of life for a second straight ses- 
sion after weeks of dormancy - 
Alcoa gained $1% to $74% and 
International Paper climbed 
$1% to $63%. 

Offsetting those gains, Coca- 
Cola dropped $1 to $39%. 
PepsiCo, subject to a big 


sell-off last week, 
unchanged at $31% 

In the automobile sector. 
Ford added $1 to $58% in brisk 
activity, after the company 
unveiled three US-made car 
models to be marketed in 
Japan. Chrysler was $1 higher 
at $47%. 

Cyprus Amax Miwwaig made 
a rare appearance on the 
NYSE's active list The stock 
climbed $% to $31% after the 
group filed with the SEC for a 
shelf offering of up to $50Gm in 
debt and equity. 

UAL, parent of United Air- 
lines, gained after the company 
called a July 12 shareholders' 
meeting to vote on a proposed 
employee buyout of the airline. 
The issue added $2% to $119%. 


Canada 


Toronto slipped at midday as 
thin trade took the 'BSE 300 
index 1L27 lower to 4J99L24 in 
volume of 21.55m shares. 
Declines led advances by 299 to 
206 with 259 unchanged. 

Gains in the gold and mptais 
sub-indices failed to offset 
losses in Toronto's 12 other 
sub-sectors. The big losers 
were real estate and transpor- 
tation. 

Active issues included Bra- 
malea, down 3.5 cents to 215 
cents in heavy volume after 
announcing plans to consoli- 
date common shares on a one- 
for-20 basis. 

Joutel Resources rose 3 cents 
to 60 cents in response to dril- 
ling results from its Cuban 
copper and gold properties. 


Weak bonds, a weak dollar and 
the threat of excess liquidity 
due to corporate cash calls 
pushed most bourses loweF, 
writes Our Markets Staff. 

PARIS suffered a sharp cor* 
rection after the CAC-40 index, 
falling to find fresh support 
after breaking through the 
2,000 level, struck a session’s 
low of 1369 before ending the 
day at a new low for the year 
of 137736. down 43.06. 

The main cause of the set- 
back was not the European 
election results in France, a 
riisap pn intmBnt for the ruling 
right-wing coaliton govern- 
ment, but continuing weakness 
in the bond and fixtures mar- 
kets. Equity turnover stayed 
low at around FFriLSbn. 

Suez eased FFr9.50 to 
FFriSft50 as investors reacted 
to the news, announced after 
Friday's close, that It was to 
sell its Groupe Vlctoire subsid- 
iary to Commercial Union, of 
the UK. The sale, believed to 
be for some FFr12 3b n, is per- 
ceived as disappointing for the 
French group. James Capel, 
which said it was not recom- 
mending the stock as a buy, 
made reference yesterday to 
the fact that, by its own calcu- 
lations, the sale was worth 
some FFrlZhn less than it was 
last summer - a difference 
equivalent to FFr80 per share. 


FRANKFURT tried to move 
up after a satisfactory Euroe- 
lection performance from the 
CDU, but the attempt found- 
ered under pressure from the 
pending Daimler rights issue, 
and other technical factors 
which went from bad to worse 
as the day wore on. 

The Dax index finished the 
session down 2730. or L3 per 
cent lower at 2.105.78. Selling 
shred of Daimler’s near-DM3bn 
rights issue brought the stock 
down DM28, or 33 per cent to 
DM747 and undermined other 
cyclical blue chips like BMW, 
Volkswagen, and BASF. 

Turnover rose from DM53bn 
to DM5 3bn. After hours, the 
Ibis-indicated Dax fall through 
support at the 2,100 level, and 
kept falling until it closed the 
afternoon at 2,084.42, its lowest 
point of the day. 

Mr Edgar Benischek, bead of 
trading at Banfc Julius Bar in 
Frankfurt, Mid that in addition 
to the weight of the Daimler 
issue, the market was con- 
scious of Friday’s upcoming 
closure of fixtures and options 
contracts - an event which can 
lead to strong pressure to bring 
prices up, or down. 

The events of the day over- 
shadowed allegations in Der 
Spiegel which left Mannes- 
mann down DM2.50 to 
DM43650 on the session, and a 


further DM2 lower at the end 
of the Ivywiim afternoon. 

AMSTERDAM’S only bright 
spot came with the first day of 
trading in KPN, the post and 
telecommunications group, 
which closed at FI 5030, a pre- 
mium to the issue price of 
FI 49.75. Volume was exception- 
ally heavy with an estima t e d 
17m shares changing hewU- 

The flotation of 30 per cent of 
the KPN equity was the largest 
in the market’s history, but 
even this was insufficient to 
motivate the broader market 
which was pressured by weak 
bonds. The AEX index finished 
off 5.02 or L2 per cent at 40L69; 
KPN not yet being included 
among AEX canstitoaits. 

Heineken dropped FI 430 to 
FI 218.70 in line with the trend 
and little affected by news that 
its Spanish subsidiary, El 
Aguiia, planned a 3-for-lQ 
rights issue. 

KLM, off 10 cents at FI 5030, 
denied reports which had come 
from the Belgian communica- 
tions ministry, that it had been 
holding talks with Sabena on 
closer co-operation. 

MILAN was unexpectedly 
weak after the strong showing 
of Mr SOvio Berlusconi’s Forza 
Italia party in the European 
elections. The Comit index fell 
1330 or 13 per cent to 74233 
amid profit-taking, particularly 


by foreign investors, after yes- 
terday’s options expiry and 
ahead of tomorrow's end of the 
monthly account. 

Dealers noted that the mar- 
ket faced heavy rails on liquid- 
ity with the with the privatisa- 
tion of Ina, the state insurer. 
and a number of rights issues 
during the July account They 
added that a constitutional 
court ruling on pensions, 
which could cost the treasury 
up to L16,000bn. compounded 
the negative mood. 

Among shares heavily traded 
by foreign investors. Fiat fell 
L2S8 to L6.633, Generali gave 
up L950 to 143,600 and Mont* 
edison lost L69 to L1.405 in vol- 
ume of 27.7m shares. 

ZURICH was pulled lower by 
the banking sector after the 
Swiss National Bank warned 
tha t it saw no room for easier 
monetary policy for the time 
being. The SMI md ex dropped 
19.6 to 2,7443 as UBS bearers 
lost SFr21 to SFr 1,206 and SBC 
bearers SFrS to SFr 406. 

Against the trend. Berner 
Holding, the insurer, picked up 
SFrSO to SFr 1380 after Ger- 
many's Allianz said it had 
bought a 30 per cent stake. 

SMH. under pressure last 
week, rose SFrZT to SFrS40. 
James Capet which lowered its 
recommendation, commented 
that a relatively Oat profit out- 


FT-SE Actuaries Share Indices 


Jon 13 
HMty 


cium Qpre IQ IB TUX) tr.QO llflp 


THE EUROPEAN SEACS 
1400 ISffi 9m ■ 


FT-SE 

FT-SE Ear*** 200 


M&40 

147734 


1401.39 

1*2277 


vmv 

1420 90 


190*87 

IMM? 


13033 

141*16 


UBM 


l»» 13 
UUL41 Him 


J» » 


JMft 


MS 




JKl 


FT-SE Ema* WO Mil *3 

FT-SE EnatoKfc 200 I4K.N 

mt maavmotmtm no - 


mml«; 

143094 

MUM 


1420.74 

143939 


143*30 

nut mum 


141841 

143330 


FT-SE Eurotrack indices changes 

For exclusion: Pharmacia 
“B” (Sweden): SkandU Free 


The FT-SE Euro track Indices 
Committee met on Thursday. 
June 9 awl approved the fol- 
lowing changes to the FT-SE 
Euro track Index, to be made 
on Monday. June 20, 1994: 

For inclusion: Tele Danmark 
“B" (Denmark); Munich Re 
Reg (Germany); Montedison 
(Italy); Sveaska Handelshan- 
ken (Sweden); Fomento de 
Const (Spain). 


(Sweden); Commerzbank (Oar 
many); SOP Stop (Italy); Volks- 
wagen Reg (Germany). 

Indicative reserve fist Phil- 
ips Electronics (Netherlands); 
RAS (Italy); Volkswagen Rag 
(Germany); Nlchelln “8* 
(France); Investor “A" (Sea 
den); Swiss Re Reg (Switzer- 
land). 


look for this year, combined 
with concerns about the dura- 
bility of the Swatch brand, 
would make it difficult for the 
watchmaker to outperform in 
the short term. 

MADRID was not inclined to 
celebrate the triumph of the 
opposition conservatives in the 
European parliamentary elec- 
tions. Bonds weakened, equi- 
ties followed and the genera) 


index fell 4.48 to 32133. 

WARSAW accelerated its 
recent slide, all Polish shares 
tumbling by the 10 per cent 
price limit The Wig index fall 
955.4, or 93 per cent, to & 1994 
low of 8,7573. Turnover shrank 
63 per cent to 374bn zlotys. 


Written and edited by WHBnm 
Cochrans, John Pftt and Wo h si l 
Morgan 


ASIA PACIFIC 


Nikkei average rallies to new two-year closing peak 


Tokyo 


Brazil 


A L6 per cent rise in share 
prices in Sao Paulo by midses- 
sion came in light volume as 
many investors remained 
absent due to the expiry of 
futures and options settle- 
ments over the next week. 

The Bovespa index was up 
492 at 30396 by 1 pm in turn- 
over of Cr210bn (5100m). 

The futures index settlement 
is scheduled for tomorrow, 
while the options settlement 
takes place on June 20. 


MARKETS IN PERSPECTIVE 


% dungs In late cwimort 

Kctanga 

■MMgr 

Kctagi 

hUSCt 


1 Wwk 

4 Waafc* 

1 Yaw 

Owl at 
W4 

awtef 

too* 

Start at 

no* 

Austria 

+6.24 

+2.71 

+25-91 

-634 

-435 

-231 

Belgium 

+0.74 

-4.49 

+1736 

-3.15 

+038 

+232 

Denmark _ 

+2.43 

-033 

+2323 

-1.68 

+0.70 

+235 

Finland _ 

-423 

-8.81 

+53.41 

+630 

+940 

+1130 

France 

-0-96 

-098 

+10-05 

-934 

-7.60 

-531 

Germany 

-038 

-5.77 

+23.60 

-6.85 

-431 

-237 

Ireland 

+2.65 

+0.08 

+1434 

-337 

-1.80 

+039 

Italy - 

+3.33 

-6.60 

+4035. 

+2226 

+2732 

+3038 

Netherlands 

+032 

-134 

+20.74 

-3.76 

-138 

+031 

Norway . 

-332 

-738 

+26.89 

-231 

+038 

+231 

Span 

-0.14 

-138 

+21 .re 

-141 

+137 

+332 

Sweden 

-139 

-4.60 

+2939 

+335 

+648 

+832 

Switzerland 

+1.03 

+232 

+20.72 

-5.09 

-1.78 

+0.12 

UK 

+1.84 

-235 

+735 

-9.90 

-930 j 

-8.16 

EUROPE 

+038 

-338 

+1578 

-537 

-432, 

-247 

Australia 

-030 

+0.02 

+1939 

-336 

+239 

+436 

Hong Kong 

-135 

-028 

+2624 

-23.09 

-2524 

-23.79 

Japan 

+7.10 

+331 

+432 

+1721 1 

+23.60 

+2539 

Malaysia 

+5.17 

-1-96 

+38.67 

-2329 

-2131 

-2041 

New Zealand — 

-021 

+i49 

+3126 

-228 

+031 

+2.84 

Singapore 

-0.05 

-1.10 

+2529 

-1133 

-8.95 

-7.19 

Canada — 

-1.41 

+1.42 

+831 

-1.19 

-034! 

-4.74 

USA 

-029 

+335 

+232 

-131 

-a37 

-131 

Mexico — 

-1.02 

+8.83 

+51.45 

-631 

-15.14 

-1330 

South Africa 

+2.71 

+1.09 

+46.67 

+14.79 

+037 

+232 

WORLD INDEX 

+049 

+141 

+739 

+144 

+244 

+442 


Buying by foreigpi investors 
and domestic institutions sup- 
ported share prices, and a late 
afternoon rally sent the Nikkei 
225 average to a new two-year 

hi g h , writes Smiko Terazono in 
Tokya. 

The index finished 157.63 
higher at 21,552.81, its best 
level since February 1992. It 
declined to a day’s low of 
21,271.55 at the beginning of 
the session on selling by deal- 
ers and profit-taking by institu- 
tional investors. Buying by 
overseas investors and domes- 
tic institutions pushed prices 
higher later, absorbing index- 
linked selling by investment 
trusts and profit-taking, and an 
intraday peak of 21.573J21 was 
registered just before the close. 

While a farther rise in the 
index would require the partic- 
ipation of domestic institu- 
tions, traders expected the 
downside to be limited. 
Although most institutions had 
not changed their view over 
the economy and were not con- 
vinced of an imminent recov- 
ery, many were nervous of 
being left behind in the current 
rally, said a UK based broker. 

The Topix index of all first 
section stocks rose 11.93 to 
1,712.73, while the Nikkei 300 
added L99 at 31L7L Advances 
led falls by 730 to 286, with 174 
imnipa unchanged. 

A total of 162 stocks were at 
their highs for the year. Vol- 
ume dropped to 400m shares, 
from L09bn on Friday. In Lon- 
don the ISE/Nlkkei 50 index 
eased 0.29 to 1,411.77. 

Mits ubishi Heavy Industries, 
the most active issue Of the 
day, put on YB at Y828. It man- 
aged to shrug off earlier profit- 
taking by Investors who 
regarded the stock as too 


expensive. Ishikawajima-Har- 
ima Heavy Industries moved 
ahead YI6 to Y516. 

Minebea, the ball bearings 
manufacturer, fell Y24 to Y900. 
Speculators and dealers, who 
had bought the issue on pros- 
pects of higher profits due to 
increasing sales of the compa- 
ny's computer keyboards, 
rushed to take profits. 

Construction companies, 
regarded as laggards, gained 
ground on buying by foreign- 
ers, domestic individuals and 
dealers. Kumagai Gumi rose 
Y26 to Y538 in heavy trading, 
while Haseko appreciated Y20 
to Y726. 

Profit-taking depressed Nip- 
pon Telegraph and Telephone, 
which declined Y2.000 to 
Y872.000, and East Japan Rail- 
way, which lost Y2.000 to 
Y513.000. 

In Osaka, the OSE average 
advanced 9955 to 23,747.18 in 
volume of 3&8m shares. The 
index climbed for the fifth con- 
secutive day on rises in low- 
priced issues. 


group, to SSI 1.60 on Japanese 
institutional demand. 

SEOUL bought early on 
expectations that the govern- 
ment would soon increase the 
ceiling of foreign share owner- 
ship. But profit-taking set m 
after Finance Ministr y officials 
said the government had no 
plans to revise its previously 
announced schedule. 

This process wiped out most 
of the early gains, the compos- 
ite index finishing a set 4.64 
ahead at 92&24 after reaching a 
day’s high of 93187 during the 
first hour. 

KUALA LUMPUR closed well 
off its highs on heavy after- 
noon profit-taking, after the 
prime minister said that the 
general election could be held 
at any time from now until 
December 1995. 

The composite index ended 


just 095 firmer at 1, 01783 after 
a morning peak of 183381. 

There were reports that 
Nomura Securities had 
launched a new Malaysian 
fund, known as the Aurora 
Fund, which was aiming to 
raise up to Y300bn. 

BANGKOK encountered 
profit-taking which left the 
SET index 487 lower at 1879.04 
in moderate turnover of 
BtT.Sbn. 

Losses were pared by the 
firm performance of the prop- 
erty development sector, 
spurred hv Kris da Mahana- 
kom, which jumped Bt? to 
Bt79.50 in turnover of 
Bt£03.7m. 

The stock rallied after a case 
of alleged stock manipulation 
against its major shareholder 
Vichai Krisdathanonda was 
dropped last week. 


Shares in Jalaprathan 
Cement gained BL4 at Bt 131 in 
turnover of Btl42.6m on a 
newspaper report of a planned 
capital increase. 

SHANGHAI'S yuan-denomi- 
nated “A" shares remained 
under pressure from a flood of 
new issues, a loss of confidence 
in company managements and 
robust sales of treasury bonds. 

The index fell 23.42 to a two- 
year low of 497.79, compared 
with an historic peak of 
1.640.71 In February 1993. 

“B” shares, reserved for for- 
eign investors, have put in a 
steadier performance, helped 
by locals who have enlisted the 
help of relatives and other for- 
eigners to buy on their behalf. 
The “B" share index dipped 
1.49 to 71.13. 

MANILA edged lower as the 
market continued to consoli- 


date, missing the stimulus of. 
the Hong Kong market. The 
composite index dipped 1.99 to 
2486.19 in volume that fall to 
82&2m shares from the previ- 
ous session's l.3bn. 

WELLINGTON turned lower 
after a firm opening, the 
NZSE-40 Capital Index 
19.98 to 2,104.03 In suhdi 
trading. 

JAKARTA was weaker In 
lifeless trade, which left the 
Jardine index 0,15 lower at 
101.51. 

Ades. a water bottling firm 
which made its debut, finished 
at Rp3,650 for a &2 per cent 
decline from its offer price. 

COLOMBO edged down, with 
limited foreign demand leaving 
the all-share index 7.77 off 
at 973.73. Turnover dropped 
to SLRs38.6m from Friday's 
SLRsl20m. 


Roundup 


Singapore and Kuala Lumpur 
were subdued after Malaysian 
election prospects seemed to 
fade. Australia, Hong Kong 
and Taiwan were closed for 
public holidays. 

SINGAPORE was volatile on 
a mixture of political news 
with selective Japanese buy- 
ing, ending with the Straits 
Times Industrial index 11.79 
higher at 2^9592. 

Equities fluctuated after Mr 

M ahathir Mo hamm ad, the 

Malaysian prime minister, told 
state political leaders not to be 
disappointed if a general elec- 
tion was not held soon. 

However, they were led 
higher by an 80-cent rise in 
Cycle & Carriage, the motor 


t toad an Jm IOOi IBM. Copy*** FtancM Thm Lfattad, Gottnan. SMhs A Co. m* 


S Africa climbs 1 .4 per cent 


The implications of the European elections for equity mar- 
kets will be felt this week. lit was good news for Austria, 
which also voted at the weekend in favour of Joining the 
European Union; the Vienna market was the best performer 
in local currency terms among the constituents of the FT- 
Actuaries World index. The Austrian decision could have a 
positive short-term effect for those Scandinavian markets 
which are due to vote on union thte autumn, although 
Unibank Securities reports that the “no” vote campaign 
continues to lead polls in both Sweden and Norway. 


Futures-related buying and improved foreign demand helped 
Jo hannesb urg climb 1.4 per cent, although a volatile gold price 
and mild profit-taking blunted the advance. 

The overall index added 77 at 5,721, industrials 64 at 6,709 and 
golds 46, or 23 per cent, at 2,065. De Beers rose R&50 to a 
closing high of RU7J50 and Anglos were R6 up at R245. 

Argus Newspapers was nntraded as it made its market debut: 
the gap between a bid price id 1 RlO and sellers appearing at R15 
was said to reflect uncertainty on future performance. 


FT-ACTUARIES WORLD INDICES 


JOnUy comptod by The Financial Times LteL. Goldman, Sacha & Co. and NatWest Securities Ltd. In conjunction with the Institute at Actuaries and the Faculty at Aeturfes 
NATIONAL AND 

REGIONAL MARKETS BHQAY JUNE 10 IBM THURSDAY JUME S 1994 DOLLAR MDEX 

Figures kt parentheses US Day's Pound Local Local Grass US Pound Local Year 

show nunbw of tees Deter Clangs Staring Yan DM Cureney % dig Otv. DoBar Staring Yon DM Cwrancy 62 vretft 52 warit acre 
Nock mdas W Index Index index Indac on day Yield Index swan Index Index index High Low fspprox) 



173.65 


179.79 

Belgium (37)-— 

18533 

Canada (106) — „ 

Denmark (33). 

— _ 25074 


137 2T 

165.73 

Germany (58) 

13638 

Hong Kong (58 

372J8 

Mr m 

— . 8922 



Mexico (18) 1- 

2085.49 





S^apore(44) — 

341.10 

South Africa 69) 

Spain (d?) 

27434 

14338 





United Kingdom (205)_. 
USA61SJ-. 

18032 

18735 

EUROPE (Till) 




P*Me0win(7SCI) 

— ™ 17135 
. -163.82 

North America 


Eumoa Ex. UK SI 31 


Pacric Bl Japan (Ml) 24737 

World Ex. US (1851) 10092 

world Ex. UK (1869) 
World Ex. So. AI. (Till). 

— 17024 
17338 


>415 

in 

0.3 

as 

1.0 

- 1.2 

ao 

os 

-in 

ai 

i.i 

-<U 

42 

02 

08 

ai 

as 

- 0.1 

1.6 

1.0 

-ai 

on 

as 

02 


17071 

178.75 

163.12 

127.17 

248.45 

13005 

162.93 

133.78 


11406 

11809 

10099 

8497 

166.67 

9023 

10088 


67.71 

161.18 

46207 


244.93 

121.77 

5080 

10709 

30827 


15051 

15503 

14302 

112.12 

219.83 

119.07 

143.65 

11704 

32300 

16088 

7703 

142.10 

40010 


157.20 
155.49 
14044 
12064 
224.63 
15046 
147 A3 
117.94 
37043 
17703 

107.21 
10709 
47082 


203048 135068 1790.19 757208 
185.77 13080 172.60 169.86 
45.68 6054 

12037 15083 
22405 39065 
18089 23030 
9407 124.79 
13908 18471 
10032 13097 
123.70 16022 
12207 182.13 


18015 
33503 
27029 
14135 
20900 
167.62 
185.13 
M 


8209 

17069 

241.06 

28704 

14075 

24900 

139.94 

185.13 

187.05 


-00 

14 

00 
06 
08 

-1.5 

-04 

01 
- 1.0 

02 

as 

-06 

42 

02 

06 

01 

04 

-ai 

13 

08 

-02 

-04 

08 

02 


051 

1- 03 
303 

2- 83 
131 

091 

3.05 
1.75 
021 
042 
1.48 
071 
1.71 

un 

340 

3.79 

184 

1.75 

2.16 

3.88 

140 

1.73 

4.06 
2 XT 


174.06 

17064 

16547 

12069 

251.25 

138.08 

18068 

13847 

37063 

1802S 

8824 

16456 

451.87 


171.17 
17860 
162.72 
12656 
247U8 
13877 
16893 
13822 
37038 

182.18 
8078 

18103 

444.18 


114.00 

11623 

10894 

84.73 

165.42 

8156 

moe 

8019 

24736 

121.97 

5010 

10834 

29757 


151.32 
16348 
14884 
111.87 
21841 
12090 
14443 
117.76 
327.41 
16105 
7071 
14808 
392.65 

206038 2028.16 135649 179137 754735 2647.08 143818 
197JS4 19428 13008 171.72 16832 20743 16422 
8064 6234 77.59 4837 

15838 17931 20842 16081 
296.79 24137 37082 242.48 
235.11 28434 28026 17533 

12892 14737 155.79 11833 
18535 25029 23135 18885 
13933 14055 17056 12446 
18235 18335 21436 17032 
18232 18573 19504 17B3S 


157.75 

15333 

14046 

128.05 

22235 

161,87 

14000 

117.78 

374.14 

177.40 

10635 

10834 

45139 


18015 

19541 

17587 

14531 

27579 

16072 

18537 

14737 

50556 

20933 

07.78 

16531 

62133 


130.18 

14230 

142.02 

121.48 

20738 

8554 

14930 

10739 

271.42 

5738 

12434 

31231 


13828 

14543 

14347 

12743 

21432 


15541 

11232 

29572 

18887 


15847 

344.73 


80.76 

18230 

341.40 

27046 

14235 

21821 

18028 

18575 

US$.76 


8830 

178.17 

33074 

28597 

14018 

20938 

16731 

18335 

16583 


4633 

11936 

224.77 

17507 

9888 

14038 

106.62 

12235 

12234 


16525 

4837 

15036 

25934 

1942S 

12831 

17030 

12737 

17074 

18132 


03 
01 

-03 

0.1 

02 

04 
04 
01 
01 
ai 

04 


16238 
10051 
16839 
16637 
10037 
14574 
24838 
16735 
17031 
ITT 34 
17841 


100.63 

13831 

112.88 

11089 

12032 

9835 

18032 

111.61 

11330 

11438 

11937 


14836 

17630 

148.70 

14533 

169.03 

12938 

21438 

14738 

15016 

15030 

18518 


1S637 

206.16 

117.18 

182.86 

18334 

13632 

222,47 

13596 

14561 

15039 

177.13 


03 

-0.1 

-OS 

-0.1 

02 

ai 

03 

-ai 

-01 

oo 

as 


330 

1.46 

133 

134 


238 

237 
1.05 
2.02 
821 

238 


18448 

202.79 

17231 

18870 

18813 

148.67 


168.73 

17813 

17378 

18134 


1*172 

19942 

18018 

16530 

18000 

14820 

24239 

16831 

17028 

17038 

17832 


10527 

13331 

11525 

111.07 

12067 

9738 

16241 

111.75 

11339 

11441 

119.72 


Tha V*ortd Index CM 70) 17439 


14236 

17528 

14835 

14635 

189.19 

12924 

21446 

14736 

16031 

16137 

15507 


15439 

20543 

117.74 
13234 
182.70 
13575 

221.75 
13510 
14574 
161.01 
17936 


17568 

22060 

17231 

17078 

19873 

15747 

28521 

17231 

175.58 

17838 

19530 


14138 

1S832 

134.79 

14138 

17S37 

12237 

18236 

14234 

15822 

16500 

16572 


14548 

16510 

15631 

152-0 5 

17034 

12506 

190.02 

15242 

169.78 

161.18 

18743 


01 -17134 11438 16133 16231 


*■ ^22^^^55^*2225; ““ '“"A** 6““““ Umeea 13W 


OO 231 17436 17146 11479 161.67 16231 17897 155.17 18139 



■ ‘ C %*'"*■ 




. • pQW.. : tenamed 

Fortis AG 


-s +■'. 

■ W. \ 




■ r ■■■ , 


a limited by shares 5 V :' ! v 

Bo a] ev’ardS^^cqma in 53 - 1000 Brussels'. 

Register n° 181 k- : " : 

A- .. t.vy 2 - r,!/Yw» > w ‘ .-v :• v \ 






e,«rpr'-’ 


, Qif 


bid * or L ' 




Zi- ' 


USA-*- 


--- 


SfiJ's- 




Cct! C :•?*■** 


a - 1 • * 


-BOI 


\ ^ 


■*- 

4*. 1 * 




®8ft5 5-Js-.. 




Cli-a* N.j- . 


8JT IfJ.zjr 


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NOTIGE Tri HOLDERS OF 
tSXAMmmm SHARES AND'M^H&aflES-.' 


10 > 1 ! .. ... 

C^crncSsi • 


<V* ' 




Fo 


mng 




the approval by the extraordinary?.^ 
me^fcg :: o£.^haxeholders of 9 June.-^g.^. 

: hefinviii wKiSe'' ^L. 


i^ : ap^^^'^Ssc>ciation, the co 

stamp existing “ 
and WP^ >redtLced withho 
shares) arid Warrants, in order t€( 



rom 



compart^; nahie to "Fortis AG"^^:;)®|&^ange in the date of 

4.1 1 3 J 4. _ ^1 


:s (formely AFV 
the change in the 


the ann^J,.general meeting, jf 
last Tii^clay in May. 





en advanced to the 




Sioi 


* , T'CM ) . 


Sef!l n - 




V 










. .. .; 

Ay: 


Thistv^jj^ration will be c^^^t^^^ithout expense for the 

holjfe^fof these secur^#j®i^^l|owing banks: 


s. 


‘#>r 






.=Sf?>5r 




CAI^E jPiaYEE BANQUE 

BANK 






From 17 which have not been 

stamped^-^^g^'-;^ negotiable on the stock 






“-’rl 


.. \"l . •..* . 


. .. #. .. 




•.* id '