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p;5 Climbing Mount 
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Afterthe^^ti ons 

M'any^teaded hybrid 
rises in Europe 

Page 8 


FINANCIAL TIMES 


Europe’s 8 us i ness . N ewspapsr 


France prepared 
to send 2,000 
troops to Rwanda 

Prance yesterday offered to send troops to stop 
the ethnic killing in Rwanda, but only Italy gave 
so much as a half-promise to support the French 
move. Fans told the nine-nation Western European 
Union defence group it was ready to send a battal- 
ion and reinforce it up to a strength of 2JM0 if 
necessary. In Rwanda, meanw hile, UN-brokered 
peace talks stalled after rebels killed a peacekeeper, 
and a pro-government militia stormed a hotel 
sheltering refugees. Page 3 

Belfast children attacked: A man wielding 
a flame thrower injured six children as they sat 
an A-level examination, at school in Go. Down, 
Northern Ireland. Three were seriously hurt 

Rafl meeting today: Both sides in the rail 
dispute are due to meet today for talks awwxi 
at averting another strike over pay. Page 4 

Metallgesellschaft, the heavfly-indebted 
German mining, metals and industrial group, 
has raised DM1.2bn (£480m) from the sale of Its 
near-60 per cent stake in Buderus, an engineering 
and building supplies subsidiary. The sale was 
handled jointly by Deutsche Bank and Dresdner 
Bank via an international share placing. Page 11 

Greycoat launches rights issue: The property 
company rescued from near-collapse last year 
launched a £4 7m rights issue to buy and refinance 
part of a London office and retail property. Grey- 
coat made a £40m pre-tax loss Car the year to 
end-March but returned to profits in the second 
hall Page 10; Lex, Page 24 

Footballer on charge: US football star OJ. 
Simpson was charged in connection with the 
murders of his ex-wife and a male companion. 

Unisys, US computer company, warned slow 
sales of mainframes in Europe would mpan lower- 
than-expected second-quarter earnings. Its shares 
fell from $10% to $9. Page 11 

LVMH opt im i s t i c on profits: The French 
luxury goods group expects net profits to rise 
by more than 30 per cent in the first half of this 
year as the luxury goods industry recovers. First- 
half profits last year were FFrSJ5m (£109m) . 

Page 11; Lex. Page 24 

Pharmacia offer oversubscribed: Sweden 
will raise SKi9.4bn (ESOOm) from the sale of a 
47.4 per cent voting stoke in world-class drugs 
group Pharmacia. The government offer was 
heavily oversubscribed. Page 11 

Jtarflot, the Russian airline which has been 
split into 321 small airlines, plans to sell a 49 
per cent stake at a privatisation auction, airline 
officials told Reuter. The airline became a Joint 
stock company this week. 


FT-SE 100 Index 

Hourly movements 



FT-SE Index cases: 

The FT-SE 100 index 
gained 20 points early 
in the day, but shares 
went lower when gilts 
fdL The index closed 
at 3.0224, a net 74 
points down on the 
day and fell 33 points 
over a week in which 
confidence was dented 
by uncertainty in bond 
markets. Page 15; Mar- 
kets, Weekend FT, 
PageH 

RMItant leader Idfled: Indian forces killed 
19 suspected Kashmiri separatists, officials said, 
including a leader of the group that has kidnapped 
Britons Kim Housego, 16, and David Mackie, 36. 

Dublin exchange opens: Europe’s only 
floor-traded currency futures exchange opened 
in Dublin as FJNEX Europe, a futures and options 
division of the New York Cotton Exchange, began 
offering currency futures. 

Vietnam In gas venture: British Gas 
TransCanada Pipelines and Japan’s Mitsui signed 
a deal with state oil company PetroVietnam on 
Friday for a feasibility study on a$40 Qm (£266.6m) 
project to open up Vietnam’s natural gas market 

Body search Is over: Police called off their 
Gloucester-centred search for human remains 
after four pinnths. Builder Frederick West 52, 
has been charged with U murders and his wife 
Rosemary with nine. 

Cricket: England were 94 for the loss of Alec 
Stewart’s wicket in reply to New Zealand’s 476 
in the second test at Lord’s in London. 


■ STOCK MARKET PtM CgS 

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WEEKEND JUNE 18/JUNE 19 1994 


D8523A 


Life ins urers criticised for poor surrender values 

Some customers would have been better off holding cash, says OFT study 



Carsberg: policy rates of return 
were in some cases negative 


By Norma Cohen, 

Investments Correspondent 

Some UK insurance companies 
offer such poor terms for cashing 
in life policies early that custom- 
ers could be better off holding 
their savings in cash, according 
to the Office of Fair Trading. 

An OFT report on 60 of the 
UK's largest life insurers yester- 
day discloses wide disparities in 
the surr end er values of life insur- 
ance policies. 

The study shows that compa- 
nies with household names are 
among those offering the worst 
returns to policyholders. It will 


reinforce the OFTs campaign for 
greater disclosure of costs and 
charges by insurance companies. 

The OFT cates industry studies 
showing that one quarter to one 
third of all policies lapse in the 
first two years alone. 

Sir Bryan Carsberg, director 
general of fair trading, said: “On 
the basis of assumptions about 
lapse rates and projections of sur- 
render and maturity values, the 
policyholders of some companies' 
appear to receive average rates of 
return which are no more than 
marg inally positive, or even neg- 
ative.” 

For Instance, on a 10-year 


“with-profits" policy, involving 
payments totalling £3.000 in pre- 
miums over the first five years, 
the policyholder would earn a 
refund of £3^15 from Eagle Star 
but a refund of £2.244 from 
National Provident Insurance. 

On a 25-year unit-linked policy, 
where £3,000 in premiums had 
been paid in the first five years, 
Scottish Mutual would refund 
£2£34 while Allied Dunbar would 
repay just £1,500. 

The study shows that several 
companies that offer the worst 
early surrender values are also 
those which have been fined or 
disciplined by Lautro, the self- 


regulatory body for the life insur- 
ance industry, for tois-selUsg. 
They include Guardian. London 
and Manchester. Reliance 
Mutual, Legal and General and 
Colonial Mutual. 

Other companies offering poor 
value to early leavers in at least 
two product types are Royal Life, 
Asa Equity and Law, Irish Life 
and Pearl- 

Only one company whose prod- 
ucts rank in the top five of value 
for money on early surrenders - 
Norwich Union - has been fined 
for poor sales practices. Equita- 
ble life ranked in the top five for 
almost all products. 


The study also examined the 
profit margin earned on each pol- 
icy in each year of its life and 
concluded that for some compa- 
nies, greater profits are earned 
on policies that surrender early. 
“For a few companies, the pat- 
tern of profits suggests that 
returns to the company are 
higher when more policyholders 
surrender early with significant 
losses,” Sir Bryan said. 

The Surrender Values of Life 
Insurance Policies, Office of Fair 
Trading, OFT PO Bos 2, Central 
Way. Feltkam TW14 OTG 

Finance and the Family, Page EH 


US disarray 
over policy 
on sanctions 
for N Korea 


By John Burton in Seoul and 
Alexander NJcoll in London 

US diplomatic efforts to resolve 
the North Korean nuclear dispute 
were in confusion last night after 
indications of a breakthrough 
during talks in Pyongyang were 
disavowed by President Clinton. 

Mr Jimmy Carter, the former 
US president seeking to broker a 
solution on a private visit to 
Pyongyang, told Mr Kim Il-sung, 
the North Korean dictator: “I 
would like to inform you that 
they have stopped the sanctions 
activity in the United Nations." 

Cable News Network, the US 
television channel, showed him 
making the remark and reported 
that he told Mr Kim be was doing 
so after consultations with the 
White House. 

However, Mr Clinton denied in 
Chicago there had been any 
change in US policy, which he 
had outlined on Thursday, to 
seek UN sanctions to punish 
North Korea for its failure to 
open its nuclear facilities to 
international inspection. He had 
said the US would continue to 
seek sanctions while it explored 
the credibility of the latest North 
Korean offers. 

Mr Clinton said: *T don't know 
what be [Mr Carter! said, and 1 
don't know that you know what 
he said. All I know is what I said. 


and what I said is the policy of 
United States.” 

The denial appeared to under- 
mine the efforts of Mr Carter, 
who is scheduled to end his 
three-day visit to North Korea 
today. Though acting in a private 
capacity, he bad been fully 
briefed by the White House 
before setting off. 

During his talks, North Korea 
indicated it was willing to remain 
a party to the nuclear non- 
proliferation treaty (NPT). and 
Mr Kim said two inspectors from 
the International Atomic Energy 
Agency could remain at the 
North's nuclear complex in Yong- 
byon. North Korea withdrew 
from the IAEA this week. 

Mr Carter told the 82-year-old 
dictator the Clinton adminis- 
tration had “provisionally 
agreed” to a new round of talks 
with Pyongyang if it returned to 
the International Atomic Energy 
Agency and agreed to freeze its 
nuclear programme. 

He suggested the US was ready 
to issue a declaration banning 
the use of nuclear weapons 
against North Korea if negotia- 
tions proceeded smoothly. North 
Korea has long sought such a 
guarantee. 

In a goodwill gesture. Mr Kim 
said be was ordering the 

Continued on Page 24 


PofitKcal uncertam^ and inflation fears posh up bond yields 


US bfndnMk bond ytaJd 

7.15 — *»TTrr~ 


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Germany benchmark bond yield 

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Italy benchmark bond yield 

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7.00 

13 Jana 1094 
Sourco: FT GrapWto 


Fears of rising inflation and interest rates, 
and large budget deficits contributed to 
a continued faff In gove rn ment bond prices 
while the US dollar was subject to sharp 
fluctuations. 

Political uncertainty following elections 


7.0 





to the European parliament earlier this 
month reinforced the bearish sentiment 
which has dogged the markets since the 
start of the year. 

The US bond market outperformed 
European markets last week, as German 


June 1884 


bond prices fell 3 points, 

Italian bonds posted the worst losses 
last week, as concerns about the new 
government's handling of the budget deficit 
mounted. 

Report, Page 21; Hard times for gilts, Wkd V 


Gummer set for row with developers 

By Andrew Taylor, in the rest of the econor 


By Andrew Taylor, 

Co ns tr uc tion Correspondent 

Mr John Gummer, environment 
secretary, looks set to anger 
housebuilders by restricting the 
supply of development land in 
one of the country’s most sought- 
after housing markets. 

Environment department offi- 
cials have suggested to Berkshire 
county council that the govern- 
ment would prefer it to limit the 
supply of housing land in its 
forthcoming structure plan to 
40.000 homes between 1991 and 
2006. This is one-sixth less than 
the 48,000 homes recommended 
by DoE inspectors following a 
public inquiry last year. 

The intervention is nan-bind- 
ing but is understood to reflect 
Mr Glimmer's desire to strike a 
balance between the needs of 
development and of protecting 
the anmtryside. 

It comes as the government 
struggles to recapture the alle- 
giance of traditional supporters 
in southern England, many of 
whom oppose further housing 
development in rural areas- Berk- 


Minister urges restricting supply 
of Berkshire land for housing 


shire councillors, who had pro- 
posed a lower development limit 
of 37,000 homes, will meet next 
week to discuss the department's 
letter. The structure plan is due 
to go to a meeting of the local 
authority’s environment commit- 
tee for approval next month. Mr 
Gummer may then overrule the 
council’s plan. 

The issue is regarded as a 
‘landmark planning decision” by 
the Housebuilders' Federation, 
which proposed a development 
target of 52,000 homes. It wfll be 
the most controversial structure 
plan to be endorsed since the 
introduction of the 1991 Planning 


and Compensation Act which 
gave more power to local authori- 
ties to determine planning issues. 

The outcome in Berkshire, 
according to housebuilders, will 
set the tone for future structure 
plans drawn up by other county 
councils. 

Pressure for residential devel- 
opments in southern England is 
expected to increase as the hous- 
ing market recovers. 

The federation has warned that 
a shortage of development sites 
has already pushed housing land 
prices up by 50 per cent in the 
south-east during the past year - 
“stoking inflationary pressures 


in the rest of the economy". 

The Council for the Protection 
of Rural England, which sup- 
ported the Berkshire's limit of 
37,000 homes, is also likely to he 
dissatisfied with the 40,000 figure, 
which it says does not recognise 
environmental damage. 

CPRE officials privately admit, 
however, that housebuilders are 
likely to be even more unhappy 
with the compromise total 

The need for the Tories to 
regain ground in southern. 
En g land was highlighted in last 
month’s local elections when 
they won only 27 per cent of the 
overall vote - the same figure as 
the Liberal Democrats who are 
seen by local electors as being 
strong on environmental issues. 

Fighting to win the minister's 
ear. Page 8 


Nuclear site clean-up costs 
more than double to £8.2bn 


By David Lascehes, 

Resources Editor 

The cost of cleaning up the UK 
Atomic Energy Authority’s 
nuclear sites has more than dou- 
bled, according to government 
estimates released yesterday. 

Mr Tim Eggar. the energy min- 
ister, said the authority's liabili- 
ties were now estimated at 
£8.2bm against a previous esti- 
mate of £3.4bn. That consisted of 
about £Ebn to decommission the 
authority's own sites, and a fur- 
ther £2bn for fuels and wastes 
and for cleaning up British 
Nuclear Fuels sites. 

Mr Eggar said that the increase 
was because of: 

• Inclusion of new costs - for 
example, looking after sites dur- 
ing the various phases of decom- 
missioning, which can last 100 
years. 

• Costs for assessment studies 
and research and development 

• The completion of fuller 
studies of dismantling costs and 
the volumes of waste created. 


• Greater allowance for contfn- 


The authority’s sites are 
mainly experimental nuclear 
reactors at Windscale, Dounreay. 
Harwell and Vfinfrith. Since 
April, responsibility for decom- 
missioning has been with 
UKAEA government division. 
The remainder of the authority, 
renamed AEA Technology and 
comprising the technology and 
consultancy operations, is now 
being prepared for privatisation. 
Us sale value has been estimated 
at £250m. 

Mr Derek Pooley, chief execu- 
tive of UKAEA gov e rn m ent divi- 
sion. said yesterday he hoped the 
decommissioning work could be 
completed below the estimates. 
“It's our job to get the costs 
down,” he said. 

The actual, or discounted, cost 
of the UKAEA clean-up will be 
£5bn. It is normal practice in the 
nuclear industry to set aside 
financial provisions well before 
they are needed, and allow them 
to grow with compound interest 


CONTENTS 


The discount rate used is 2 per 
cent 

The latest estimates suggest 
that the total undiscounted cost 
of decommissioning the UK’s 
existing nuclear installations will 
be about £22bn-£23bn. 

A year ago, the National Audit 
Office put the total cost at £L8bn, 
using the AEA's earlier esti- 
mates. 

But it warned that those esti- 
mates were “understated because 
of optimistic assumptions and 
si grniflflanf omissions". 

The British Nuclear industry 
Forum, a trade group, said the 
new AEA figures had no bearing 
on estimates for other nuclear 
installations owned by Nuclear 
Electric and Scottish Nuclear, the 
two state-owned utilities. 

The government is conducting 
a review of the nuclear industry 
to see whether further expansion 
can be financed by the private 
sector. Decommissioning costs 
are one of the key issues deter- 
mining the economic viability of 
nuclear power. 


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5^'thtf' FINANCIAL TIMES LIMITED 1994 No 32,306 Week No 24 LONDON ■ PARIS - FRANKFURT ■ NEW YORK - TOKYO 


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FINANCIAL times WEEKEND JUNE 18/JUNE 



Belgian PM’s candidacy increases prospects of deadlock at EU’s Corfu summit 

Dehaene to run for Brussels presidency 


By DavW Gardner fci Brussels 

Prospects of a deadlock at next week’s 
s ummit of European Union leaders on 
the choice of a successor to Mr Jac- 
ques Deters as European Commission 
president increased yesterday as Mr 
Jean-Luc Dehaene, Belgium’s prune 
minister, formally declared himself a 
candidate. 

Within an hour of the announce- 
ment, senior government allies of Mr 
Ruud Lubbers, the retiring Dutch 
prime minister, underlined at a press 
conference In the Hague that the 
Netherlands would not consider with- 
drawing Mr Lubbers' candidacy. 

The Dutch premier, until recently 
considered the front-runner for the 
Job, had announced he was seeking 
the job in May, but delayed a formal 
declaration until after last month’s 


general elections in the Netherlands - 
in which his Christian Democrats lost 
their position as leading party. 

Mr Dehaene, also a Christian Demo- 
crat, was in April ^preached by Pres- 
ident Francois Mitterrand of France 
and then Chancellor Helmut Kohl of 
Germany to ftrmfifTf available 

for the job, according to Belgian offi- 
cials. But until yesterday he had 
refused to confirm he was seeking Mr 
Deters* mantle. 

Mr Dehaene said he was making his 
candidacy public to remove all doubt 
that he had the toll backing of the 
Belgian go ve r nm ent, which published 
a statement calling for the support of 
Belgium’s EU partners at the EU sum- 
mit in Corfu next Friday. Fears have 
been expressed that Belgium's centre- 
left coalition could ton apart If Mr 
Dehaene steps down. 


If both these Christian Democrats 
fr nm small member states fight to the 
pnH, they risk letting to an outside 
candidate. 

Sir Leon Brittaxt, the British ED 
trade «i«rmtsgtnngr , has campaigned 
openly for toe job all year, with dis- 
creet backing from the UK. Mr Peter 
Sutherland, outgoing director general 
of the General Agreement on Tariffs 
awl Trade, m^ria clear he was avail- 
able last month. 

Although his chances were dis- 
missed by Ms government in Ireland. 
HmHft senior EU officials stm believe 
Mr Sutherland has an outside chance 
as a tie-breaker in the event of a 
stand-off in Corfu. Sir Leon's chances 
are marred because Britain held the 
job, with Lord (Roy) Jenkins in the 
early 1380s, because the UK’s partners 
are suspicious of its intentions 


towards European Union, and because 
by convention, alter the 10-year tern 
ure of the Frenchman Mr Delore, the 
job dwuld now foil to a small mem- 
ber-state. , . 

Christian Democrat leaders me etm 
Brussels on Wednesday to try to agree 
a single ca ndi dat e. 

This would be Kkely only if Mr Lab* 
bers could be found a commensurate 
International position, such as secre- 
tary general of Nato, a job not in the 
EU gift The Dutch premier was in 
finm* yesterday to lobby Mr Silvio 
Berlusconi, the Italian prime minister 
b*»iT»g assiduously courted by all can- 
didates as a "swing vote" at Corfu. 

Amid this jockeying for top interna- 
tional positions, Mr Dehaene 
remarked yesterday that if he was not 
chosen, “I still have my job" as Bel- 
gian premier. 


0 Greece has nominated Mr Christos 
Papoutsis of the governing Panhel* 
tenic Socialist Movement as its Euro- 
pean commissioner for environmental 
affairs, write Kerin Hope in Athens 
and William Lewis in London. 

Mr Papcutsis, seen as a Pasok mod 
grate, was re-elected to the European 
parliament last week. He would 
replace Mr Yorutis Paleocrassas, 
con se rvative Comer finance minister. 

The nomination has caused irrita- 
tion in Brussels, where officials say 
protocol has been broken. 

"The idea was to wait until toe sew 
president had been nominated and 
then let him have a certain influence 
in his team." one 

said. 

The nomination appears to be 
aimed at preempting yet another dis- 
pute within Pasok. 


WORLD NEWS DIGEST 


lays 


French treasury 
claim to 
Tapie’ s furniture 

The French treasury, competing with Credit Lyonnais bank as 
a creditor of Mr Bernard Tapie, laid claim yesterday to the 
politician's furniture. The Budget Ministry said that, in a near 
replay of a swoop by the state-owned bank last month, two 
bailiffs went to Mr Tapie's 16th-century Paris mancimi to stake 
the tax authorities' claim on antique furniture and art works. 
Mr Tapie has said his collection represents some 40 per cant of 
his FFraoOxn (£93m) worth of assets. 

The authorities, aflaghig tax evasion and business fraud 
over Ah- Tapie’s pleasure yacht, have asked lor his parliamen- 
tary Immunity to be lifted so that investigations can go ahead. 

A Budget Ministry source said that the Treasury, in princi- 
ple, has priority claim among creditors. But sources dose to 
the loss-making bank, while stressing that it no intention 
of eng a gi ng in open battle for the assets, pointed out that his 
belongings are guarantees on part of the FFrL2bn it lent him. 
Reuter, Paris 

US telephone company ruling 

Federal regulators in the US cannot apply more lenient regula- 
tory requirements to smaller long-distance telephone compa- 
nies, the Supreme Court ruled yesterday. The Federal Commu- 
nications Commission had allowed smaller long-distance 
carriers, including MCI Communications and Sprint, to offer 
rates and services without having to specify them to the FCC. 

Because of the high cost of filing with the FCC, agency 
officials believed that relaxing regulations an smaller tele- 
phone companies would allow them to better compete against 
American Telephone & Telegraph, which controls GO per cent 
of the longdistance market. Jeremy Kahn, Washington 

Cyanide found in antibiotics 

French police are investigating how cyanide got into a bottle 
of antibiotic drugs, causing the death of a young girl, Lahora- 
toire Sedan, the French pharmaceuticals company, which 
produces the drug, said yesterday. 

The company, a subsidiary of Rhflne Poulenc, said the 
cyanide had been found in only one bottle of its Josadne 
antibiotic drug and that its presence was the result of a 
criminal act 

It said, however, that it was taking the precautionary mea- 
sure of recalling all bottles of tbe drug, which is sold in 
France, Its overseas territories and some African and Middle 
Eastern countries. John Ridding, Paris. 

Ariane puts three satellites in orbit 

The European Ariane space rocket yesterday successfully 
placed into orbit three satellites after one of the most impor- 
tant launches In the 14-year history of Arianespace, the Euro- 
pean satellite company responsible for Ariane operations. 

It was the first launch since the failure on January 24 of an 
Ariane rocket with the loss of two communications satellites 
worth more than SZSQm. Paul Betts, Aerospace Co rrespondent 

Catalans come to Gonzalez 5 aid 

Pressure on Mr Felipe Gonzfilez, the Spanish prime minister, 
eased yesterday as Catalan nationalists in the Madrid parlia- 
ment promised they would continue supporting the Socialists 
despite their poor performance in the European ejections last 
week The assurance was given by Mr Jordi Pujol, the head of 
Catalonia's autonomous government and leader of Coxrrergdn- 
cia i Uni (3 (CIU), in talks at the prime minister’s residence in 
Madrid on Thursday. 

The support of the 17 CiU MP's is sufficent to allow Mr 
Gonzalez's 141-strong Socialist group in the 350-member parlia- 
ment to continue governing but Mr Pujol stressed that the 
backing was conditional on the government’s ability to main- 
tain both its present pro-market policies and its wmimitnwnt 
to transfer increased responsibilities to the regional govern- 
ments. Tom Bums, Madrid 

Ukrainian farm credits approved 

Ukraine’s parliament approved a new credits to the state form 
sector which are expected to add 20-25 percentage points to 
in flat i on , and could bring a renewed cycle of hype rinflatio n by 
summer’s end, according to reform economist Mr Victor Pyn- 
zenyk’s. The government called the support, “the only hope 
for rescuing agriculture,” which employs a third of the 
nation’s labour force. Ml Barshay, Kiev 

$400m Vietnamese gas study 

British Gas. TransCanada Pipelines and Japan’s Mitsui signed 
a deal with the state oil company Petro Vietnam for a feasibil- 
ity study on a $400m (£287m) project to open up Vietnam's 
natural gas market 

The project trill harness gas now flared off during oil pro- 
duction in Vietnam's Bach Ho (White Tiger) offehore field, 
southeast of Ho Chi Mlnh City, and bring it ashore. After 
extraction of liquid petroleum gas, “lean gas" will be used for 
power generation and development of new industries, the 
companies said. Reuter, Hanoi 

Canadian inflation below zero 

Infla tion in Canada has disappeared, with the year-on-year 
consumer price index faffing in May for the first time since 
mid- 1955. Statistics Canada said yesterday that consumer 
P™*® by 0-2 per cent last month. The annu al inflatio n rate 

for the year to May was also minus 0.2 per cent Inflation has 
oeen failing steadily since 1991 when it reached a peak of SB 
rates and the 199108 recession gave the 
Toronto 


New currency for Uzbeks 

plans to introduce its national 
t£5& anwmg ^ last of the ex-Soviet 



Russian soldiers at a US-Rossian veterans celebration earlier Bit* year stand fay a bridge near Torgan, east Germany, where US »«l 
Soviet forces met 49 years ago near the aid of the second world war. The bridge was Mown up by road authorities yesterday 


Nordic parties to 
decide on EU 


By Hugh Camegy 
in Stockholm 

A big step forward in 
persuading the people of Fin- 
land, Norway and Sweden to 
support membership of the 
European Union should be 
taken this weekend when three 
key political parties hold spe- 
cial conferences to decide offi- 
cial policy an the issue. 

The Centre party of Prime 
Minister Eslto Abo in Finland, 
Mrs Gro War! pm R nmdtland 's 
ruling Labour patty in Norway 
and the powerful Swedish 
Social Democratic party will 
all maktt a formal riaofgfnp on 
whether to bad: membership 
in their respective referendums 
to be held in October an d 
November. 

All three parties harbour 
strong anti-EU factions, but in 
each case the pro-membership 
stance of the party leaderships 
is expected to prevail, allowing 
the leaders to throw their 
party machines behind tbe Yes 

The sharpest debate is likely 
in Finland, where Mr Abo has 
tied his future as party leader 


and the future of his coalition 
to a Yes decision. 

Mr Aho was unsettled earlier 
this week when a number of 
his AIPs abstained in a foiled 
parliamentary vote of no-confi- 
dence because of their objec- 
tion to his pro-EU policy. But 
he has produced a FM4bn 
(£480m) package of aid to help 
fanners over the adjustment to 
EU prices and should win the 
showdown vote today. 

Airs Brundtland and Mr 
Ingvar Carisson, leader of the 
Swedish Social Democrats, are 
meanwhile confident of a safe 
pro-EU majority in their 
respective party meetings. 

Last Sunday’s decisive vote 
in favour of EU membership in 
fellow applicant Austria has 
given toe Yes camp in the Nor- 
dic countries a boost A poll 
this week in Finland, which 
will vote n east on October 16, 
put support for the EU at 47 
per cent, with 32 per cent 
against and 21 per cent unde- 
cided. But the No side- remains 
firmly in the lead in Sweden, 
which votes on November 28, 
and in Norway, which votes on 
November 28. 


Europe chemical 
recovery grows 


By Daniel Green 

Recovery in w es t e rn Europe's 
chemicals industry is acceler- 
ating, according to the Euro- 
pean Chemical Industry Corm- 
cfl (Ceflc). 

“The west European chemi- 
cals business is benefiting 
from the economic recovery 
currently under way,* said Mr 
Simon de Bree, Ceric's incom- 
ing president and chairman of 
Dutch chemicals group DSM. 

Western European chemicals 
output should rise by 2 per 
cent in 1994, foster than tbe 
US per cent seat at the start of 
the year and compared with a 
contraction of 2 per cent past 
year, he said yesterday. 

“Our op ti mi sm is also justi- 
fied by the favourable trend of 
stocks and order book," he 
said. “Stocks of finished prod- 
ucts were continuously 
reduced during the second half 
[of 1983], returning to normal 
levels in early 1994. This des- 
tocking masks the preliminary 
steps of a revrv aL” 

He admitted, howev e r , that 
growth in Europe was stm too 
weak to create a large rebound 


or to begin to catch op with 
the US chemicals industry. 

Nevertheless, with annual 
sales of more than EcoSOObn 
(£230bn), die western Euro- 
pean chemicals industry 
remained the biggest in the 
world. 

Employment is expected to 
fall for the fourth consecutive 
year, this time by 3 per cart to 
about 2m. This will faring the 
total number of fobs lost in tiie 
European chemicals industry 
since 1990 to 200JW0. 

Nevertheless, Europe’s mot 
labour costs had grown faster 
than prices. This had not hap- 
pened In the US, and "the 
global position of the Euro- 
pean chemical industry is 
under threat* 

Taking the place of pharma- 
ceuticals is plastics, where 
new m anufacturing technolo- 
gies and rising prices are help- 
ing production rise by 3 per 
cent tins year. 

Close behind are organic 
chemicals and paints, which 
are each growing by more 
than 2 per cent this year. 

Only fertilisers will see a 
fall in production, L9 per cent 


Procedo chief 
held as Balsam 
scandal spreads 


By Dvrrid Write- fa ftwnkfart 

The scope of the alleged find 
surrounding Balsam, a German 
sports-floorings manufacturer, 
widened yesterday with the 
arrest af the chief ex ec utive of 

Procedo, tbe largest factoring 

company in Germany and the 

largest creditor to the BWfeld- 

The arrest of Air Dieter 
Khndvrorth follows that of the 
entire four-man beard at Bal- 
sam last week. It took place 
after BIG Bank, the biggest 
creditor to Balsam and Pro- 
cedo, filed suit with Wtes- 
baden-based state prosecutors 
alleging that Procedo was an 
active party to the fraud, 
rather than a victim. 

The latest arrest came on the 
day that creditor banks met in 
Wiesbaden to formulate their 
response to what fa developing 
into one of Germany’s largest 
post-war fraud scandals. 

Bankers are owed DML74hn 
(£S96m) Iqr Procedo and face a 
farther DABOGm to DM40ftn in 
losses arising from transac- 
tion s undertaken by Balsam bx 
the derivatives markets. These 
are believed to have a gross 
value of up to DMl4bn, dwarf- 
ing Balsam turnover of 
DM46Qm last year. 

Bankers were t old yesterday 
that the fraud bad been in 
place for up to 10 years before 
it was discovered this month. 
According to the head of the 
Frankfurt branch of a UK 
bank, “it was the perfect 
scam*, at the heart of which 
were faked applications for 
finance from the Procedo fac- 
toring company which con- 
ducted two-thirds of its busi- 


Oslo agrees terms 
with Phillips 
on Ekofisk field 


By Km* Fo»fl in Oslo 

The Norwegian government 
yesterday agreed terms with 
Phillips Petroleum for new 
facilities for the ageing Norwe- 
gian North Sea Ekofisk field, 
ending two years of uncer- 
tainty over the future of the 
field, the hub of the world's 
largest oil transportation sys- 
tem. 

The development of new 
facilities for NKrflOhn (£L83m) 
is tire biggest investment in an 
oil field in the Norwegian 
North Sea sector in six years. 

Tbe agreement also demon- 
strates the government's will- 
ingness to be more flexible on 
operating conditions: it 
extends production periods in 
Ekofisk for oil companies 
which have been delaying com- 
imtmmt s to develop new oil 
and . gas fields, aiafrnipg Nor- 
way's tax regime is too strin- 
gent at a time when oil prices 
are relatively low. 

hi 1992 the Norwegian Petro- 
leum Directorate, the oil indus- 
try watchdog, threatened to 
close tbe 250,000 b/dfieid by 
1996 fin safety reasons. 

Phillips last year submitted 
interim plans to improve the 
safety and operational reliabil- 
ity of the field which were 
rejected as inadequate by the 
authorities. However, the 
safety issue has been resolved 
because the old faculties wifi 
gradually go as new invest- 
ment takes place. 


Russia knocks on west’s doors 

I 


n tbe next three weeks, Russ!? will 
- barring last-minute surprises - 
step at least halfway across the 
threshold of three prestigious western 
clubs: Nato, the European Union and 
the Cheap of Seven leading industrial 
powers. 

Although an end to the self -isolation 
of the Soviet regime is a longstanding 
aim of tbe Yeltsin aifaiinistnitinii, diplo- 
mats expect Moscow to haggle until the 
last moment over the size of Its fee for 
appearing in the three-act drama. 

Nato announced yesterday that Mr 
Andrei Kozyrev, the Russian foreign 
minister, would sign up to Partnership 


Moscow wants to enter three clubs, 
on its own terms, writes Bruce Clark 


For Peace, the western-inspired military 
cooperation, programme, in Brussels on 
Wednesday. 

The following day. President Boris 
Yeltsin will travel to the Greek island 
of Corfu where - with ships of the dis- 
puted Black Sea Fleet at anchor nearby 
- 2m will dine with the leaders of the 
European Union. 

He will also sign a partnership agree- 
ment under negotiation for two years, 
and intended to open the EU market far 
many Russian products. 

Two weeks late:. Air Yeltsin and bis 
western counterparts will converge on 
another Mediterranean beauty spot, the 
port of Naples, for the G7 summit. For 
tbe first time, a Russian leader is expec- 
ted to play a full part In the group’s 
political consultations. 

The precise terms an which Russia 
joins the Partnership For Peace wifi be 


the subject of vigorous negotiations 
over the next four days. 

Mr Vitaly Churkin, the senior Rus- 
sian diplomat who speaks for Moscow 
in former Yugoslavia, arrived in Brus- 
sels yesterday to thrash out the content 
of a broad Russian-Nato agreement that 
wifi be seeled at tbe same time as Mr 
Kozyrev signs up to PFP. 

Bfr Churkin and Nato diplomats will 
be hagg ling about both, the content of 
tbe accord, and its presentation. 

Nato has tried to play down the 
extent to which Russia is being treated 
differently from the 20 countries, 
mostly ex-communist, which have 
already signed up to PFP. 

Mindful of the existing partners’ sen- 
sitivities, the fliHanfM has vowed not to 
conclude with Moscow any legally bind- 
ing instruments, treaties or protocols 
over and above the standard witt y form 
for PFP. 

Nato wan ts any cooperation over and 
above PFP to be agreed on as infor- 
mally as possible. In the much-quoted 
words of a British diplomat, “PFP must 
be the main dish, though there can be a 
nourishing side-salad.” 

However a landing protocol on the 
broader Russia-Nato fink - which is 
expected to Include a dialogue on 
nuclear and non-proliferation issues - 


is precisely what Air Churkin will be 
demanding: 

The Russians have already proposed 
one formula that would save the face of 
both sides: the document would be 
described as a protocol in Russian, but 
it would be stressed that the word does 
not have such a robust legal sense in 
Russian as it does in most western lan- 
guages. 

As to the content of the extra-FFP 
agreement, the Russian side wants it to 
endorse their idea - deeply unwelcome 
to the west - of subordinating Nato to 
the Conference on Security and 
Cooperation tn Europe. 


O 


ne Russian draft reads in part 
‘The paramount aim of the 
partnership would be. . . 
co-operation over settling crises, avert- 
ing conflict, conducting peace support 
operations, and forming an effective 
system of security and stability is 
Europe that takes into account the lead- 
ing role of the CSCE...” 

Other aims would Include: “Coopera- 
tion in the prevention of the prolifera- 
tion of weapons of mass destruction; 
the prevention of possible new nuclear 
missile threats; the conversion of mili- 
tary industries to civilian purposes; co- 
ordination of plans to produce new 



types of weapons - including jointly pro- 
duced weapons; [co-operation over] 
arms control and disarmament, and the 
fight against nuclear and any other 
form of terrorism. ” 

Most of these ideas are broadly 
acceptable to Nato, as long as tbe west 
can choose when it wants to discuss 
these issues with Russia and when it 
wants to keep the discussion private. 

Russia’s aim is exactly toe opposite: 
it wants its right to participate in west- 
ern deliberations on broad security 
issues to be as formal as possible. 

The Russian proposal's inclusion of 
non-proliferation and nuclear terrorism 
is a reminder that an these issues, its 
interests coincide to a broad extent 
with those of tbe west Moscow has no 
wish to see rogue regimes or, even 
worse, rogue individuals in control of 
nuclear weapons. 

However Russia is keenly aware of 
how badly the US needs its vote on the 
UN Security Council for any moves to 
put pressure on North Korea and other 
potential nudear rogues. 

Mr Kozyrev wifi be discussing this 
issue with Mr Warren Christopher, toe 
US secretary of state, before si g nin g up 
to PFP. 

Conceding to Russian aspirations on 
the from - and even the content - of its 
relations with Nato may tnwi out to be 
the price that the US and other western 
countries are obliged to pay for secur- 
ing Moscow’s cooperation in dealing 
with nuclear miscreants. 


i 


Phillips Petroleum Norway, 
which holds 37 per cent of Eko- 
fisk, had been reluctant to 
invest farther in it because its 
operating licence ran only up 
to 2011. long before production 
was due Co end. 

Under the deal, Mr Jens 
Stoltenberg, the industry and 
energy minister, said the gov- 
ernment would extend PhUfips 1 
licence to 2028 and waive a pro- 
duction tariff for the new facili- 
ties during the period 
1999-2028, saving an estimated 
NKrSOOm. These two conces- 
sions helped pave the way for 
Phillips to commit itself to Qie 
investment for the new faeflt 
ties, as they underpinned the 
economic viability of the field. 
The government estimates the 
sales value of petroleum 
resources in the field at 
NKrl30bn between 1999 and 
2028, based on an oil price of 
NKrlOS a barrel. 

The government also said it 
would take a direct 5 per cent 
stake in Ekofisk separate firm 
that of Statofl, toe Norwegian 
state oil company, which bolds 
1 percent 

The agreement must clear 
two hurdles before the develop- 
ment can be realised: the Star- 
ting (parliament) must approve 
the deal and so must share- 
holders in tbe field, including 
Petrofina, which holds a 30 per 
cent stake, and Agip, which 
has IS per cent. 

The new Bhnflgir plan «»ffa 
for the construction of a simple 
well-head platform to accom- 
modate 40 wells and for a pro- 
cessing and treatment plat- 
form. The well-head platform is 
due to be installed in 1996 and 
will use feTtering processing 
and treatment facilities until 
the replacement platform is 
completed for operation from 
1998. Phillips wifi dose seven 
existing platforms when the 
new processing and treatment 
platform becomes operational. 


THE FINANCIAL TIMES 

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RapuiuiUc Editor Richard Lambert, tt>Tl» 
Financial Tines Limited, 
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FRANCE 

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ESN: ISSN 1UM751 Comaota Pirinm 
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DENMARK 

Fmuda] 1)1013 l&udinvta) Ltd, Vtanocb 
tWd 3A. DK^rCraeJ*^ Tot 
phone 13 13 44 41, ft* 33 9333 3& 


mb with Balsam. 

Under a conventional factor- 
ing arrangement the factoring 
company advances cash to its 
chant against the security of 
unpaid invoices. It than taka* a 
commlsstax for the service and. 
m«unas responsibility for col- 
lecting the clients' receivables. 

Bankers were told yesterday 
that Balsam obtained finance 
from Procedo rax the basis of 
grossly inflated or fictitious 
contracts with overseas cus- 
tomers. They heard, for exam- 
ple, that the true value of UK 
contracts factored by Procedo 
was just £250,000, compared to 
£76m in Frocedo’s books. 

Most of the contracts relate 
to the US, where Balsam had a 
business building sports arrow 
for schools and local authori- 
ties. Many of tbe contracts 
against which finance was 
raised allegedly did not exist 
but Procedo advanced the cash 
on the basis of "comfort 
letters’* purporting to be from 
the St Louis office of the 
Arthur Andersen accountancy 
firm. These letters were forged 
and Andfitsan has said it did 
not know about the letters - 
which date back to 1984 - until 
June this year. 

The representatives of the 50 
banks owed money by Procedo 
are believed to have expressed 
anger yesterday that All- 
gemeine Kreditverslcherung. 
the Mainz-based insurance 
company which owns 50 per 
cent of Procedo. is not willing 
to advance cash to rescue the 
factoring company. A XV is 
itself 50 per cent owned by Alli- 
anz. Europe’s biggest Insur- 
ance company, and Munich Be, 
its reinsurance associate. 






FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 


Chin 


NEWS: INTERNATIONAL 




Vtu 


J f J r r • 
t j 'if 

lUi] 


term 


i fis 


i . 


Italy may also be ready to 
help stop the slaughter 

Paris offers 
2,000 troops 
for Rwanda 


Taiwanese hesitantly cast 
founder in a harsher light 


By David Buchan in Paris 

Prance told the Western 
European Union defence group 
yesterday it was ready to send 
troops to stop the ethnic 
slaughter in Rwanda bat apart 
from a half promise from Italy 
won no immediate pledges of 
support from other allies. 

Prance told a meeting of 
amb ass ad ors from the nine-na- 
tion WEU in Brussels it was 
ready to send a battalion and 
reinforce it up to a level of 
2,000 troops if necessary, diplo- 
mats said. Italy said it would 
not exclude sending troops, but 
made no firm commitment. 

Mr Willem van Eekelen, 
WEU Secretary-General, said 
after the meeting ambassadors 
would meet again on Tuesday 
to assess which, countries were 
ready to make a contribution 
to the mlsainn 

He said the WEU would coor- 
dinate any operation rather 
than run it directly and that 
there was agreement that any 
mission would have to be car- 
ried out with United Nations 
approval. 

His comments follow pres- 
sure from France for African 
and European partners to 
intervene in Rwanda to stop 
continued killing there. 

Graphic pictures and 
accounts of the massacre of 
thousands of people brought 
back by French television and 
visiting ministers, have helped 
spur France into action, as 
well as frustration that a 
month after a UN resolution 
authorising a new UN force, 
there is still no sign of it get- 
ting anywhere near Rwanda. 

France has intervened in 
Rwanda before. It sent in 600 
soldiers in 1890 to stop the 
Hutus and Tutsis kilting each 
other and broker a power shar- 


ing arrangement This eventu- 
ally bore fruit in last year's 
Arusha accords, an investment 
of French diplomatic anti mili- 
tary effort that Paris evidently 
does not now want to see 
wasted. 

To avoid charges of acting in 
a maverick or neo-colonial 
m a n n er , France is keen to per- 
suade other Europeans to join 
it in sending troops. 

Prime Minister Edouard Bal- 
ladur told the leaders of Benin 
and Mauritius that French 
intervention, would be strictly 
humanitarian, designed to 
bring some calm and food to 
the country before handing 
over to planne d UN reinforce- 
ments. 

Mr Alain Japp#, the foreign 
minister, was meanwhile on 
visits to Ivory Coast and Sen- 
egal Paris hopes that Senegal 
which has already offered 
troops to the UN force, might 
be ready to send them earlier, 
under some sort of new UN 
resolution covering the French 

Tmflariv p 

France would like UN 
authority under Chapter 7 of 
its charter, this would allow 
intervention without the 
approval of an sides to a con- 
flict that is required under 
Chapter 6 and has so for sty- 
mied file arrival of fixe new UN 
force. 

General Paul Ka g am e, com- 
mander of the Rwanda Patri- 
otic Front (RPF), reiterated 
yesterday his opposition to 
intervention by France, 
because it had trained the 
Hutu-dominated government 
forces. 

The French government yes- 
terday strongly denied French 
soldiers may have shot down 
President Julien Habyarima’s 
plane on April 6, the incident 
that triggered the violence. 


Japan’s money 
supply raises 
credit concerns 


By WUbun Dawkins in Tokyo 

The decline in Japanese 
corporate profits has started to 
ease but money supply contin- 
ues to be weak, fuelling fears 
of a squeeze on credit 

The Bank of Japan 
announced that the Connery’s 
benchmark money supply - M2 
plus certificates of deposit - 
grew 1.7 per cent in May from 
the same month last year, a 
slowdown on the Z2 per cent 
rise shown in April 

The broad measure of liquid- 
ity, which also includes postal 
savings, state debt and invest- 
ment trusts, rose 3.2 per cent, a 
slight easing on 33 per cent in 
April 

This is still well below the 5 
per cent annual growth which 
economic analysts believe is 
needed to fund a recovery, and 
is likely to add to central 
hank concerns over credit cre- 
ation. 

Separately, a quarterly sur- 
vey of nearly 20.000 companies 


by the Finance Ministry 
showed a combined S.8 per 
cent foil in pre-tax profits in 
the three months to March, 
from the same period in the 
previous year. 

That was the 15th quarter of 
profits decline, but less bad 
than the 6.2 per cent profits 
fall of the previous three 
months and the 21.6 per cent 
foil in the period before that In 
another slight improvement, 
corporate sales rose fay OR per 
c ent in the first three months 
- led by service industries - 
breaking a decline of seven 
consecutive quarters. 

The mood in Japanese board- 
rooms, however, remains cau- 
tious, as indicated earlier this 
week when Mr Shoichiro Toy- 
oda, the new chairman of the 
Keidanren, warned in bis first 
public speech that he did not 
have much confidence in the 
economic outlook. “Every year 
we seem to be preoccupied 
with wishful thinking." he 
said. 


Brazil angered 
by WTO choice 


By Angus Foster 
in Sflo Paulo 

Brazil yesterday reacted 
angrily to reports that Argen- 
tina, theoretically a dose ally, 
had hacked Mexican President 
Carlos Salinas to head the 
World Trade Organisation 
instead of the Brazilian candi- 
date, Finance Minister Rubens 
Ricupero. 

Mr Domingo Cavallo, Argen- 
tine economy minister, was 
asked to cancel a visit to Brazil 
which had been scheduled for 
later this month. Brazil's For- 
eign Ministry said the cancella- 
tion was not a reprisal but the 
visit was considered ^ “n ot 
opportune" because of Brazil's 
preparations to introduce a 
new currency. 

However, a ministry spokes- 
man said the Argentine action 
had caused “great discomfort” 
and had been viewed as "diplo- 
matically inelegant". 

The row started on Thursday 
night at the close of the fourth 
Iberian-American meeting in 
Colombia. Mr Salinas won the 
meeting's informal backing to 
bead the WTO. which is to suc- 
ceed the General Agreement 


on Tariffs and Trade next year. 
He was helped by Argentine 
President Carlos Menem who 
privately proposed Mr Salinas 
as the T-atiti American candi- 
date. This led to allegations 
from Brazil whose President 
Itamar Franco had left the 
meeting early to attend a 
funeral that Argentina had 
waited for fixe B razi lia n delegar 
tian to leave before raising the 

subject. 

The informal backing of the 
Iberian-American group will 
strengthen Mr Salmas’ candi- 
dature, and only one candidate 
from Latin America is expected 
to be considered by the new 
body. But Brazil insisted yes- 
terday that Mr Ricupero, the 
only person to have officially 
put his name forward, 
remained a “viable” candidate. 

The row between Brazil and 
Argentina comes at a difficult 
time. The two countries have 
until the end of this month to 
finalise a common external tar- 
iff for the planned Mercosur 
common market, due to take 
effect an January 1. B razilian 
officials are in Buenos Aires 
this week discussing the tariff 
rates. 


S tatues of Chiang Kai- 
shek. the generalissimo 
who lied China in 1919 
and set up a nationalist gov- 
ernment in Taiwan, are gradu- 
ally being taken down or 
moved to less visible locations 
as fixe nhiang family influence 
wanes. 

Over the last decade, 
Taiwan’s ruling Kuomintang 
(KMT), once dominated by 
General Chiang and t faen by 
his son, riMang Chmg-kuo, ban 
steered the island from a back- 
water military dictatorship 
into an Industrial powerhouse 
and arguably most demo- 
cratic state in east Asia. 

The party is moving to 
weaken the Chiang connec- 
tions, bat has stopped short of 
repudiating Gen Chiang whose 
nftpn brutal rule enriod at his 
death in 1975. However, the 
political landscape has 
changed markedly since, 
shortly before his death in Jan- 
nary 1988, Chiang Ching-kuo 
set reforms in motion by lifting 
martial law and a ban on the 
formation of new parties . 

Debate in the parliament has 
become so tempestuous that 
brawls are the norm, prompt- 
ing Shanghai’s Liberation 
Daily on Thursday to accuse 
Taiwanese lawmakers of mak- 
ing themselves an interna- 
tional laughing-stock and 
behaving like “monkeys”. 

In another sign of change, 
eight high-ranking generals 
were impeached earlier this 
month by the Control Tuan, a 
government watchdog, for 
wasting taxpayers’ money in 
an arms deal from the mid- 
1980s. This public humiliation 
of the military would have 
been unthinkable in the 
Chiang era. 

Nonetheless, the generalissi- 
mo’s stem visage still looks 
down from the walls of govern- 
ment offices, banks, com pa- 


California 
faces new 
budget 
crisis 


By George Graham 
In Wa shingto n 

California is once again facing 
a budget crisis, with an esti- 
mated $6bn (£4bn) cash deficit 
for the fiscal year which will 
end mi June 30 and a furious 
political row over whether 
Governor Pete Wilson’s budget 
arithmetic for next year adds 
up. 

Under the state constitution, 
the California legislature is 
supposed to pass a new budget 
by June 15, but this deadline 
has passed and Mr Gray Davis, 
the state controller, Is wanting 
he may once again have to 
start issuing IOUs to pay the 
state's bills. 

Governor Wilson's $57bn 
proposed budget for the 
1994-95 fiscal year was thrown 
out of kilter when voters 
rejected three ballot proposals 
10 days ago authorising nearly 
$5bn of bond issues to pay for 
repairs to roads, bridges and 
schools damaged in January’s 
Los Angeles earthquake. 

Californian Wnatm* officials 
are also on edge as they wait 
for the Supreme Court’s deci- 
sion on the case brought by 
Barclays Bank of the UK and 
Colgate-Palmolive of the US 
against the unitary tax for- 
mula under which they have 
in the past assessed taxes on 
corporations. 

The Supreme Court is expec- 
ted to issue its ruling as early 
as next week. If it derides for 
Barclays, California would 
have to refund about $400m. If 
it also decides for Colgate, 
another $L3bn would have to 
be refunded. 

The budget negotiations are 
complicated by electoral poli- 
tics. Hr Wilson, a Republican, 
is running for reelection in 
November. Mr Davis, a Demo- 
crat, is running in the same 
ballot for the lieutenant gover- 
nor’s office. 

This threatens a repeat of 
the 63 day crisis in 19S2 when 
California had to issue IOUs to 
pay its employees and suppli- 
ers. 

Mr Davis said be could not 
legally issue more conven- 
tional short term debt unless 

he was reasonably convinced 

that tbe state was able to 
repay it Governor Wilson’s 
budget he said did not provide 
a credible baas for such a ton* 
clarion. 

Besides the failure of the 
bond issue proposals, Mr Davis 
said Governor Wilson had also 
underestimated health expen- 
ditures by $2. 6bn. 

An alternative budget pro- 
posal circulated by Democrats 
In the legislature would cut 
some prison and law enforce- 
ment spending and extend a 
temporary income tax sur- 
charge on families with 
incomes above 330(1000. 


The ruling party is slowly 
cutting links with Chiang 
era, writes Laura Tyson 


nies, and post offices. An esti- 
mated 30,000 statues remain in 
pia«! across thfl •inland, m traf- 
fic circles, school grounds and 
other public places. But one 
statue of Gnang cm horseback, 
a target of vandalism by oppo- 
sition protesters, was spirited 
away this month at night 

under heavy police guard by 
the city government ostensi- 
bly to ease a traffic bottleneck. 

The KMT is now run by 
Taiwan-born civilians, the mili- 
tary-linked Chinese mainland 
faction having b ee n derisively 
shoved off the political stage in 
early 1 993 . But its present lead- 
ership remains reluctant to 
complete a reassessment of his- 
tory which would inevitably 
tarnfeh the former first fami- 
ly’s image. 

This is not only because 
man y iwninr government offi- 
cials, including President Lee 
Teng-hui owe their political 
advancement to file family, but 
because to reject Chiang would 
be to jettison his vision of 


reunification with mainland 
Chin a - bmtsTnnim* to declar- 
ing Taiwan’s independence, 
which in turn mi g h t provoke 
Beqfaig into the use of force. 

In an unusually frank inter- 
view with a Japanese scholar 
published a few mnwfhw ago. 
President Lee actually referred 
to the KMT as a “foreign 
regime" and termed Beijing's 
Inclusion of Taiwan as a prov- 
ince of China a “strange 
dream". Earlier this week a 
Chinese news agency for the 
first time attacked President 
Lee by name, accusing him erf 
trying to “split the mother- 
land". 

T here are limi ts to 
change. “The KMT is 
trying to de-emphaslse 
the connection between the 
present government and tbe 
past regime in what is part erf 
the ’indigenisation' of the 
party," said Mr Lu Ya-H, a pro- 
fessor at National Taiwan Uni- 
versity. 


“IheyVe made several con- 
cessions to the dpnumrig of the 
opposition, but they’re afraid 
of sparking a conservative 
backlash if they go too for." 

In particular, the KMT 
refuses to release documents 
locked in military archives 
which might shed light on 
events surrounding a massacre 
of Taiwanese in the early 
months of 1947, known as the 
“2-28 incident" for the Febru- 
ary day an which it is said to 
have begun. 

An estimated 15,000-30,000 
people were either killed or dis- 
appeared at the hands of KMT 
forces quashing Taiwanese reb- 
els. Most of those killed, schol- 
ars say, were from Taiwan’s 

rntoTliv-tiinl class. 

While the of the 2-28 

incident has yet to be fully 
clarified, many scholars 
believe the withheld docu- 
ments would reveal what has 
long been suspected: Chiang 
hhnBPif was hriimri the crack- 
down which took place two 
years after Japan ceded rule of 
the island to the than Nanjing- 
based Nationalist Chinese gov- 
ernment. 

Opening the archives would 
also nrnnask the nflmws of mili- 
tary personnel who carried out 
orders, possibly sparking a 



Chiang Kai-shek: place in history reevaluated 


hunt for those still alive. 
'There are a lot of skeletons in 
the closet,” said Prof Lu. 

On Wednesday, relatives of 
victims in the 2-28 incident 
demonstrated before the KMT 
headquarters. Railing the KMT 
a “bandit" party. Protesters 
demanded a formal govern- 
ment apology, compensation of 
NT$10m (£240,000) per victim 
and a public holiday for Febru- 
ary 28 to commemorate the 
tragedy. 


TEXTILE CHIEF’S SENTENCE OVERTURNED 


Taiwan’s Supreme Court has overturned 
the conviction and 2% year prison sen- 
tence of flamboyant tycoon Oung 
Ta-ming in connection with a $22m 
(£14. 6m) stock-trading scandal which led 
to toe resignation of a catenet minister, 
writes Laura Tyson in Taipei 
Mr Oung is toe de facto head of tbe 
Huai on group, which recently signed an 
agreement to establish a £157m tortile 
plant in Northern Ireland, with British 
gov e rnment bnrvtng - 
The case against him was thrown back 


to the country's high court for retrial as 
there was not enough evidence to support 
the earlier verdict, according to the derid- 
ing judge. 

Mr Oung was convicted in 1992 on 
breach of trust charges for selling, below 
market value, shares in an unlisted life 
insurance rampany fcn fim rianghtor nf the 
former minister of transport and commu- 
nications. 

There is not enough evidence to prove 
that Oung sold the shares at lower prices 
than the actual value. The of 


high and low is very subjective," a court 
spokesman 

The derision prevents Mr Oung being 
stripped of the parliamentary seat he won 
in December 1992. 

The Supreme Court upheld the acquittal 
of Mr Oung Yi-ming, a younger brother, 
for improperly enriching others in a land 
scandal Sentencing was withheld in the 
case of another brother, Mr Oung You- 
ming, who was involved in the share scan- 
dal He fled the i fiand in 1991 and has not 
returned to face charges. 


The KMT early this week 
agreed to pay families up to 
NT$6m for each person killed, 
although it declined to use toe 
term “compensation", prefer- 
ring the word “arrangement”. 
But it rejected demands to 
apologise, to declare a national 
holiday, and to force military 
commanders responsible to 
face trial. 

There are some concessions 
to the truth, although the KMT 
is still reluctant to confront its 
past and that of Gen Chiang. In 
the last year, textbooks have 
inserted for the first time a 
brief mention of the 2-28 inci- 
dent 

There will gradually be a 
more objective evaluation of 
Chiang Kai-shek's place in 
Taiwan's history,” said Prof 
Lu. “On tbe one hand he was 
responsible for land reform 
here, and he maiwtahipri the 

economic stability Taiwan 
needed to develop. But he has 
also been criticised for rigidity 
in foreign policy and disregard 
for human rights, even brutal- 
ity." 






Mexico’s Chiapas peace 
co mmis sioner resigns 





'y&M' - 


• v ' v ** yj*a 

<re»3gp£. ■ W’SWt'wf W ' * 


South Koreans hi a Seoul rail w a y station watch a broadcast of 
North Korean president Ki« D-Snng’s meeting with former US 
president Jimmy Carter yesterday nmm- 

Compromise on 
US banking bill 


By George Graham 

The US Treasury said it bad 
resolved one of the issues hold- 
ing up passage of an interstate 
hankie HU but banking offi- 
cials warn that negotiators are 
still deadlocked over its appli- 
cation to foreign banks. 

Bank officials said they 
believed the biB, which would 
allow banks to open branches 
outside their own states, could 
become law as early as the end 
of this month, and would cer- 
tainly be passed before Con- 
gress breaks up in August 

Treasury officials said they 
had readied a compromise on 
Thur sday night with consumer 
groups on the extent to which 
state laws would apply to 
hanV<f availing themselves c£ 
the the bill’s new freedoms. 

Interstate banking bills have 
been passed by both the Senate 
and the House of Representa- 
tives, but del e gates from the 
two chambers are now locked 
in negotiations on how to rec- 
oncile the differences between 
their two versions. 

Under the compromise, state 
laws on consumer protection 
btvI fair lending would gener- 
ally apply to branches of an 
out-of-state bank just as they 


da already to a bank incorpo- 
rated inside the state. They 
would not, however, apply if 
federal laws specifically pre- 
empted to**™ or if the Comp- 
troller of the Currency, the 
chief bank regulator, deter- 
mined they tWwcrfmiwatafl 
against out-of-state banks. 

B anking experts and con- 
gressional aides said agree- 
ment was still a long way off 
on the issue of foreign banks. 

The Senate version of the tell 
would restrict foreign banks 
from opening new branches in 
the US unless they operate 
through 9 separately incorpo- 
rated subsidiary with its own 
capital While some foreign 
hanks have such subsidiaries, 
many have opened branches 
depending directly on the par- 
ent company. 

Foreign banks argue this 
would be a breach of the prin- 
cipal of national treatment 

In a strongly worded letter to 
the House banking committee 
and the Treasury, Mr Andreas 
van Agt, the European Com- 
mission's ambassador in Wash- 
ington, warned that the Senate 
version “might prejudice the 
important principles of 
national treatment and free- 
dom of investor choice-" 


By Ted BanJacke 
in Mexico CKy 

Mr Manuel Camacho Solis, the 
Mexican government’s peace 
commissioner in hag 

resigned from his post and 
temporarily retired from poli- 
tics, less than a week after 
Mayan Indian rebels in the 
southern Mexican state 
rejected a peace plan Mr 
Camacho had negotiated with 
them. 

Mr Ha macho haif been direct- 
ing Mexico's efforts to find a 
peaceful end to a peasant 
uprising that broke out on Jan- 
uary 1 in the impoverished 
state near the Guatemalan bor- 
der. 

Mr ra^chn launched a blis- 
tering attack on Mr Ernesto 
Zedillo, the candidate of his 
own riding Institutional Revo- 
lutionary Party (PRI) saying 
recent criticism Mr Zedillo had 


Coca-Cola 
returns to 
S Africa 


By Mark Suzman 
in Johannesburg 

The Coca-Cola company 
yesterday announced plans to 
reopen Its South African 
operations, right years after it 
dislnvested from the country. 

The group wfD establish a 
Southern African division 
office in Johannesburg later 
this year and purchase 
National Beverage Services, 
the South African company 
which now provides market- 
ing, te chni cal and other sup- 
port to local Coca-Cola bot- 
tlers. 

The new office will have 
responsibility for regional 
marketing in Namibia, Leso- 
tho, Swaziland and Botswana. 

The price of the proposed 
Natbev purchase has not been 
disclosed and is subject to 
final approval from toe South 
African Reserve Bank. 

Coca-Cola products, cur- 
rently sold through indepen- 
dent bottling franchises in 
South Africa, make up about 
75 per emit of annual domestic 
carbonated soft drink sales of 
B&5bn (£648m). 

However, the market has 
recently become more 
crowded, and Coca-Cola’s 
announcement comes only a 
week after arefc-rtval PepsiCo 
derided to return to South 
Africa in a joint venture with 
black businessmen. 

Coca-Cola has said it too will 
try to accelerate black empow- 
erment through affirmative 
action, a management develop- 
ment programme, encouraging 
Mark suppliers and participat- 
ing in educational schemes. 


made of his peace effo r ts had 
hurt his ability to continue and 
damaged the peace process. 

“At the very moment in 
which we had achieved...a con- 
solidated truce in Chiapas, a 
vote of censure has been 
expressed with regard to my 
work, and every resource has 
been used to broadcast it," Mr 
Camacho said of Mr Zedillo's 
repeated statements that the 
peace negotiations had been a 
“failure." 

The rebels want to spar a 
democratic transition in Che 
country, while the government 
is increasingly treating the 
conflict as a local one. Mr Sali- 
nas reiterated yesterday efforts 
to deal with the problem would 
now be handled by the Chiapas 
state gove rnmen t. 

Widely believed to harbour 
presidential ambitions .Mr 
Camacho angrily resigned as 
mayor of Mexico City last 


November after being passed 
over by President Carlos Sali- 
nas de Gortari in favour of the 
late Luis Donaldo Colosio as 
PRZ presidential candidate in 
elections to be held in August 

He recently joined a group of 
private intellectuals and politi- 
cians seeking to push for 
greater democracy and to pro- 
mote stability after toe elec- 
tions expected to be the closest 
in recent Mexican history. 

Mr Camacho pledged not to 
participate in any political 
activities until Mr Salinas' 
presidential term ends in 
December. While this seems to 
end the possibility of an inde- 
pendent presidential candidacy 
an idea he has toyed with since 
being passed over some ana- 
lysts believe be may still pres- 
ent himsel f as an interim con- 
sensus president if the existing 
candidates fail to win a 
healthy majority. 





The time is now. KINETIC 






DTI ‘tried to block pensions white paper’ 


B y Norm a Cohen, 

Correspondent 

A white paper on occupational 
Pe n s ion reform is to be released next 
week following resolution of a dis- 
pute between two government 
departments on the potential cost to 
employers of the reforms. 

Industry sources miri the Depart- 
ment of Trade and Industry had 
intervened to block the release Last 
week of the Department of Social 
Security's white paper, which pro- 


poses legislation which requires pen- 
sion schemes for the first time 
ever meet minimum solvency stan- 
dards. 

The paper is expected to require 
that from April 1997. all schemes 
have enough assets to meet mini- 
mum solvency standards. Those that 
do not will have until April 2002 to 
add additional funds. 

A DSS study of 500 company pen- 
sion schemes found that 86 per cent 
would meet the proposed minimum 
solvency test But the 14 per cent of 


schemes which do not meet the pro- 
posed standards include a significant 
number of large pension hinds. 

The DTI became concerned over 
the costs to Industry - the study 
showed that meeting the new sol- 
vency standards would cost industry 
between £lbn and £2bn because 
employers had not been putting 
enough rash into their schemes. 

The DTI was also concerned that 
the effect of the minimum solvency 
standards would be to encourage 
pension schemes to sell equities and 


buy UK gQts, hitting the stock mar- 
kets. 

The white paper follows recom- 
mendations from a government- 
appointed panel, the Pension Law 
Reform Committee, chaired by Pro- 
fessor Roy Goode. The Goode Com- 
mittee had recommended that each 
scheme be required at all times to 
have “cash equivalents” - at least 
enough assets to provide each mem- 
ber with his or her full benefits 
earned retrospectively if the scheme 
were wound up immediately. 


The industry objected, arguing 
that this would force schemes to 
dump equities for lower-yielding 
gilts and drive up the costs to 
employers of providing pensions. 
The Institute of Actuaries and the 
Faculty of Actuaries proposed a com- 
promise which would allow schemes 
to take greater account of returns mi 
equities when calculating “cash 
equivalents”. 

Sources said that the DTI had 
hacked down after tt became con- 
vinced that the Goode Committee 


solvency. standard had been watered 
down so far that any further weak- 
ening would in effect mean abandon- 
ing the measure. 

Research for the DSS also suggests 
that the UK stock markets would be 
unaffected by chang es in investment 
str a tegy as Amd managers adapted 
to file new standard. Th e research 
suggests that fund managers were 
likely to reduce holdings of foreign 
equities and increase their pur- 
chases of UK government index- 
linked gUtw 


Heseltine eager 
to keep DTI post 


By David Owen 

Mr Michael Heseltine insisted 
yesterday that he wanted to 
remain in his present post as 
trade and industry secretary 
and not succeed Sir Norman 
Fowler as Conservative party 
c h a i rman. 

“My interest Is In being pres- 
ident of the board of trade - 
everybody knows that,” Mr 
Heseltine said. “I think there 
have been too many changes in 
this department over the 
course of the last years and my 
interest is in staying where 1 
am.” 

Mr Hesal tine's reluctance to 
move is thought to stem partly 
from a desire not to tie his own 
fortunes too closely to those of 
Mr John Major, in effect scup- 
pering his remaining hopes of 
becoming prime minis ter. 

Speculation about Sir Nor- 
man's successor has mounted 
since Thursday when he 
announced his intention to 
step down at the time of the 
r eshuffle . 

Yesterday's suggestion that 
Mr Heseltine should succeed 
came from Mr Kenneth Baker, 


a former chairman and cabinet 
minister. 

“What is needed now is a 
war tim e chairman,” Mr Baker 
said. “He has to be a street 
fighter, he has to be combative 
and he has to be a drum major. 
The one who most fills that 
role certainly would be Mich- 
ael Heseltine.” 

Mr David Hunt, employment 
secretary, is the favourite to 
succeed Sir Norman after a 
year in which he has won 
widespread plaudits for his 
confident campaigning style. 

But many Tory backbench- 
ers nursing Inadequate majori- 
ties see Mr Heseltine as a bet- 
ter bet to minimiaa casualties 
in the next general election. 
Labour's strong performance 
in last week's European elec- 
tions will probably have 
reinforced these views. 

Other possible contenders 
include Mrs Virginia Bottom- 
ley, the health secretary, and 
Mr Tony Newton, leader of the 
Commons. 

Sir Norman said yesterday 
that his successor would need 
“the qualities of a Sherman 
tank”. 




Union intelligence briefing: three sacked MI6 cleaners keep their heads down behind a screen as TGWU national secretary Jack Dromley explains their case 

Cleaners, the spooks and the union mission 


By Robert Taylor, 

Labour Correspondent 

Three cleaners working for the MI6 
intelligence service were unmasked yes- 
terday amid scenes worthy of an Ealing 
comedy at the Ernest Bevin room of 
Transport House, the London headquar- 
ters of the TGWU general union. 

The cleaners, all women, were at a 
press conference organised to complain 
about their sacking by the Foreign 
Office for refusing to accept a pay cut 
To ensure anonymity, the women were 
hidden behind screens. Mr Jack Dro- 


mey, the TGWU national officer, 
c laim ed that they would face instant 
dismissal under the Official Secrets Act 
if they were identified, and lose their 
redundancy payments. But during the 
press conference the screens foil down 
- narrowly missing a ceremonial mace 
from the 1889 dock strike - and the 
three women faced the glare of the 
madia cameras. 

Mr Dromey said 47 cleaners had been 
forced to sign a "gagging order” promis- 
ing not to speak to the press about their 
complaints. Yesterday the women did 
not hold back in attacking Mr Douglas 


Hurd, the foreign secretary, over the 
loss of their jobs. 

Many of the women, who have been 
positively vetted, have worked for MI6 
for 30 years. Their jobs were subjected 
to market-testing to see if they could be 
done more cheaply by contractors. Mr 
Hurd, in a letter to two Labour MPs, 
said the cleaners were found to have 
“rates of pay and allowances above the 
market rate". 

Strand Cleaners has won the contract 
to clean the MI6 offices when the intelh- 
gmiffp organisation moves this summer 
to a new building at VauxhaO Cross, 


south London. The hourly rate for 
deaneas is to be cut from £4 to £3.50, 
with a reduction in holiday entitlement 
and sick pay. 

One woman who worked for MI6 for 
19 years said she stood to lose as much 
as £ 1,200 if she complained about her 
treatment and was identified. Another 
sa id the cleaners had been “victimised 
just to save money”. All said they were 
patriotic, law-abiding women who had 
been unfairly treated. 

The Foreign Office said that the gov- 
ernment had acted wi thin bath UK and 
European law over the market-testing. 



Beckett calls 
for return 
to picketing 




By David Owen and Ivor Owen 

Mrs Margaret 
. — Beckett yester- 
day sought to 
v fc*. enhance her 

gjJSrvEs**. appeal to 
Hr V \ Labour tradi- 
UEADERSHIP tionalists by 
CONTEST calling for the 
return of sec- 
ondary picketing as part of a 
root-and-branch reform of 
union law. 

In a move which Infuriated 
supporters of the other two 
Labour leadership candidates, 
Mrs Beckett broke with party 
policy, calling for laws allow- 
ing a “sensible, workable and 
fair” approach to picketing. 

Coming less than 24 hours 
after the left-led TGWU general 
union recommended hex for 
the leadership,- Mrs Beckett’s 
move looked set to enliven the 
current contest, putting day- 
light between the candidates 
on a specific policy issue for 
the first time. 

Mr Tony Blair, the favourite 
to succeed John S mith , this 
week rejected the notion that 
all union legislation passed by 
the Conservatives since 1979 
should be scrapped, saying he 
did not think it would be “sen- 
sible". 

Mr John Prescott, the lead- 
ing traditionalist candidate, 
has pledged to work for the 
repeal of sections of Terry legis- 
lation without being specific. 

Interviewed on BBC radio, 
Mrs Beckett said that a sensi- 
ble approach to secondary 
picketing was needed to ensure 
workers were not treated 
“without any regard for rea- 
sonable industrial rights which 


would be enjoyed anywhere 
else in Europe". 

She said there "could well be 
a need just to sweep the board 
dear and start again, keeping 
those elements of existing leg- 
islation which people thought 
it was right to retain”. 

She added: “There are things 
many unions would want to 
see retained - some of the 
methods of balloting and so an 
- bat sometimes when you are 
trying to replace legislation 
you can’t do it hit by bit, you 
have to have a new act and it 
may wen be that is the right 
path to follow.” . 

Supporters of Mr Blair and 
Mr Prescott accused Mrs Beck- 
ett of pandering to her backers 
in the TGWU. 

In a move more in keeping 
with the general trend among 
unions, the Unison public ser- 
vices union decided against 
recommending any of the can- 
didates. It said it had agreed 
“strongly to encourage” all 
levy-paying members to exer- 
cise their own judgment 

Mrs Beckett’s remarks were 
seized upon by leading Conser- 
vatives who claimed . they 
showed Labour was in disarray 
about its union policy. 

Sir Norman. Fowler, the out- 
going Tory chairman, said Mrs 
Beckett's decision to “let the 
cat out of the bag” had. left 
Labour in “a total shambles”. 

He was supported by Mr Tim 
Sainsbuxy, industry minister, 
who told MPs that Mrs Beck- 
ett's backing for a return, to 
secondary picketing suggested 
that a Labour government 
under her leadership would, re- 
create the industrial problems 
of the 1970s. 


-'..HSwS 


Talks on 
rail 

dispute 

planned 

Both sides in the rail sign all i ng 
dispute are due to meet today 
for joint negotiations at the 
conciliation service Acas in an 
attempt to prevent a further 
24-hour shutdown of the net- 
work on Wednesday, Robert 
Taylor writes. 

The RMT union said last 
night that it hoped to resolve 
the dispute over the weekend 
but added: “There is still a 
wide gulf between os." 

The union wants an interim 
pay offer for the signalling 
staff before entering job 
restructuring talks with Rail- 
track. Its claim is for an 11 per 
cent pay rise. It has been 
offered a 2.5 per cent basic rate 
increase for all employees in 
line with the government’s 
public-sector pay policy. 

Railtrack said it was willing 
to negotiate a self-financing 
package for the signalling staff 
in return for higher productiv- 
ity but refuses to concede any 
“up-front" payment for past 
improvements in efficiency. 

It said: “The process of dis- 
cussion is now obviously back 
cm the tracks and we hope the 
ball keeps rolling." 

National Savings 
net receipts fall 

National Savings’ contribution 
to government funding fell 
again Last month to £424m 
including £158m from accrued 
interest This compares with 
£554m in April Net receipts in 
May were £266m with gross 
sales of £985m being offset by 
repayments of £719hl 

The highest-selling product 
was the Pensioners Bnnrfc at 
£248m, although £65m of this 
was transfers from Income 
bonds. Premium bonds were 
the next best-celling product at 
£l53m. The total amount 
invested in National Savings at 
the end of May was £49.4bn. 

Six in Monklands 
by-election fight 

Six candidates are to fight the 
Monklands East by-election on 
Jime 30, caused by the death of 
Labour leader John Smith, 
who had a majority of 15,712 
over the Scottish National 
party in the 1992 general elec- 
tion. 

They are: Helen Liddell. 
Labour; Kay Ullrich, SNP; 
Susan Bell. Conservative; Step- 
hen Gallagher, Liberal Demo- 
crat; Duncan Paterson, Natural 
Law party; and Abi Bremner. 
Network Against the Criminal 
justice BflL 

Seren accused of 
power meter ‘fraud’ 

Seven men have been charged 
after an investigation into 
alleged large-scale gas and 
electricity thefts, Northumbria 
police said yesterday. 

The investigation followed 
allegations of homes small 
businesses in.' northern* 
England, and Scotland being 
supplied with equipment to 
interfere with gas and electric- 
ity meters. Police said the 
sevmx had been charged with 
conspiracy to defraud. 

Boost for failed 
holiday company 

The Civil Aviation Authority 
yesterday told administrators 
trying to seU Sunseeker Lei- 
sure, the collapsed holiday 
company, that it would speed 
up any application for an Air 
Travel Operating Licence, 
which normally takes six 
months to obtain. 

Huddersfield-based:- Sun- 
seeker, which specialised in 
packages to the Mediterranean, 
collapsed a week ago. 


The Monday FT. 


This Monday, and every Monday set yourself up for the week ahead with the 
Financial Times. 

Its agenda will not only alert you to the business opportunities and highlights of the 
week, it will help you make the most of life outside work too, offering a comprehensive 
guide to everything from the Arts and fashion to health and travel, in an easy to use format. 

So whatever you have in mind for the rest of the week, you should start by getting 
the Monday FT. 

Financial Times. Europe’s Business Newspaper. 


■j '• » % > A. 


Prince of Wales set to 
pay income tax of £lm 


By Vanessa Houlder, 

Property Correspondent 

The Prince of Wales is 
expected to pay about Elm in 
his first tax bill since he volun- 
teered last year to pay income 
tax. 

The prince will pay 40 per 
cent of the revenues of the 
Duchy of Cornwall, which 
totalled £4.Q8m in 1903, afteV 
deducting the costs of his offi- 
cial duties. 

The details of his tax returns 
have not been finalised, but 
the total is expected to be simi- 
lar to the sum arrived at under 
the former system when he 
voluntarily surrendered 25 per 
cent of the duchy’s total 
income. 

The duchy’s accounts, which 
were published yesterday, 
showed that net income for the 


year had increased from 
£3.41m to £4JXkn. The value of 
the duchy’s assets increased 
from £7G.2m to £87.7m. 

Income from farmland and 
property was £9.1m, compared 
with opiating costs of £SLGm. 
T he h igh operating costs 
stemmed from the wide geo- 
graphical spread of holdings 
and higher- than-average main- 
tenance standards. 

Another £1.05m of income 
came from stockmarket invest- 
ments, offset by a £L0Sm inter- 
est charge that stemmed from 
acquisitions of commercial 
property in - the late 
1980s. 

The Duchy of Cornwall was 
created in 1337 by Edward HI 
for the Black Prince to provide 
an income for the heir to the 
throne. ' . 

It comprises 130,000 acres of 


agricultural land, mainly in 
the south-west of En gland and 
the Isles of SciBy, a residential 
and property portfolio, and a 
£4Qm quoted investment port- 
folio which is invested in 
environmentally sound compa- 
nies. . 

The duchy said r it aimed to 
be efficient, forward-looking 
and commercially sensible, 
while seeking to respond to the 
interests and concerns of the 
Prince of Wales, particularly 
.those of planning, the environ- 
ment and architecture. 

The Prince of Wales’ advis- 
ers are finalising his tax return 

with the Inland Revenue. 

All expenses connected with 
o fficial duties, including the 
r unn in g cS his 62-strong office, 
entertainment and uniforms’ 
are . allowable against 
tax. 




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FINANCIAL TIMES 

london ■ park hiah«m»t-i«wy©k tokyo 



, — -mwiBS WEEKEND JUNE 18/JUNE l»tM4 



Results adverts ‘incomplete’ 

Companies’ 

disclosures 

challenged 


By Andrew Jack 

Quoted companies are 
exploiting regulatory loopholes 
to present their financial 
results in the best possible 
light, according to a report 
published yesterday by the 
Institute of Chartered Accoun- 
tants in ’Rngfawri and Wales. 

Most advertisements placed 
in the fingnHai press to record 
a company's performance do 
not comply with London Stock 
Exchange disclosure require- 
ments, it found. 

The details are contained in 
a survey by Mr Roger Hussey 
and Ms Sarah Woolfe, of the 
University of the West of 
En gland, published yesterday 
by the institute’s research 
board. 

Less than three-quarters of 
companies revealed their turn- 
over and just over a third 
showed their tax charge In 
results advertisements placed 
in the Financial limes in 1992. 

Publication of these and 
another dozen elements are 
required by stock exchange 
listing req uirement s if the 
results advertisement is the 
only way the data is passed on 
to shareholders. There are no 

i w p iirumcnts as to which n rirn- 
bers are shown if the company 
separately sends out this full 
information in a report to all 
shareholders. 

With the exception of the 
large privatised utilities, most 
companies do send out this 
separate report, so they are not 
breaking the law. But they are 
only presenting highly selec- 
tive information which often 
shows their results in a favour- 
able light. 

“Results advertisements 
have to be read with extreme 
caution,” said Mr Hussey, pro- 
fessor Of financial sendees. 
“There are mostly advertising 
the company. Their informa- 
tion value is limited.” 

The authors highlight a wide 
degree of variation in the time 


Britain’s large industrial and 
commercial companies 
improved their short- term 
liquidity positions in first 
quarter of this year as they 
used the proceeds of share and 
bond issues to build up cur- 
rent finanrial assets and repay 
bank borrowings, Peter Nor- 
man writes. 

%aamally adjusted figures 
from the Central Statistical 
Office yesterday showed that 
the overall liquidity ratio of 
large UK companies increased 
to 144 per cent at the end of 
March from 133 per cent at the 
end of December and 107 per 
i-*nf at the end of March last 
year. 

The ratio measures current 
assets maturing in less than a 
year as a share of liabilities 
that have to be repaid in less 
than a year. It is based on a 
survey of 350 of Britain's big- 
gest and gives an 

indication of the short-term 
ftnanriiil strength of the large- 
company sector. 

Non-manufacturing 
companies, including oil 
companies, were especially 
flush with liquid assets: 
their liquidity ratio jumped 
to 175 per cent at the end of 
March from 159 per cent 
at the end of last year and 
129 per cent at the end of 
March last year. 


lapse between the date of the 
financial results and the date 
of their publication. 

They recommend that com- 
panies should provide greater 
balance-sheet information, and 
that cashflow data at the half- 
year stage should be made 
compulsory. 

Interim statements and pre- 
liminary profit announcements. 
Research Board, Institute of 
Chartered Accountants in 
England and Wales, PO Box 
433, Chartered Accountants 
ttnll, Afoorgate Place, London, 
EC2P 2BJ.E1S. 


Nimbies winning battle for Berkshire 

Builders are watching planning policy in a politically sensitive shire, says Andrew Taylw 

nr IMrchini *■* ■ • iSfi 


The leafy county of Berkshire, 
home of Royal Ascot and Wind- 
sor Hastily this M umm er finds 
itself at the centre of yet 
another planning wrangle. The 
outcome may determine how 
g o vernment Intends to respond 
to demands from housebuilders 
to be allowed to develop in 
politically sensitive shire coun- 
ties. 

Prospects for builders seek- 
ing to ex pand output sharply 
in some of Britain's most valu- 
able real estate markets do not 
appear bright judging by 
recent policy statements by the 
Department of the Environ- 
ment 

The 1991 Planning and Com- 
pensation Act, supported by 
planning guidance notes from 
the department, allow county 
and district councils much 
greater authority to determine 
local needs and plans. The 
department’s strategy was to 
ease pressure on diminishing 
countryside by encouraging 
greater use of urban land. 

Importantly it reversed gov- 
ernment policy of the 1970s 
and 1980s which had assumed 
a presumption in favour of 
housing development to meet 
the growing dmmwd for homes 
in southern England. 

The pro-development atti- 
tude reached Its peak during 
the mid-1980s when the t h^n 
Nicholas Ridley, as environ- 
ment secretary, seized on the 
acronym Nimby (not-in-my- 
backyard) to attack local resi- 
dents for trying to prevent 
newcomers from living and 
working in their area. 

In July 1989 Mr Ridley 
approved the construction of a 
country town of 4JBOO homes 
caned Foxley Wood at Bram- 
shill Forest, in north-east 
Hampshire. The proposal was 


W r,.-; 



Half-built: New developments are suffering as the housing market recovers - hence the importance of ti» Berkshire structure plan 


made by Consortium Develop- 
ments, a group of 10 of the 
country’s largest house- 
builders. Three months later 
this decision was reversed by a 
asw e n v i ro nm ent secretary, Mr 
Chris Patten, now Hong Hong’s 
governor. 

For many erf the post war 
years, the main measure used 
by successive governments of 
the effectiveness of their bous- 
ing policy had simply been to 
calculate fo** number of homes 
hrriit annually , 

Patten signalled a marked 
shift in this strategy, announc- 


ing that the previous guidance 
to planners to presume in 
favour Of h O naA hrri Tding was 
being withdrawn. He added 
that it was up to local people 
through councils, rather than 
central government, “to deri d e 
how and where their [housing] 
requirements «h«ild be met”, 
w ithin is months, Consortium 
Developments had been dis- 
banded. 

The strength of government 
c ommitm ent to this new strat- 
egy has never been fully 
tested. The desire of house- 
builders to acquire expensive 


sites in controversial areas fell 
sharply during the recession. 
Only now are ambitious devel- 
opment plans beginning to sur- 
face as the housing market 
recovers. Hence the impor- 
tance attached by builders to 
the final draft of the Berkshire 
structure plan. 

Mr John Cummer, current 
environment secretary, 
recently emphasised his com- 
mitment to encouraging devel- 
opment in towns and cities. In 
a policy statement on transport 
planning be said he wanted to 
"ensure the vitality of rural 


areas, so that people who live 
there do not become long dis- 
tance commuters”. He added: 
“Housing development needs 
to be accessible to public trans- 
port facilities so that there is 
an alternative to the car.” 

Berkshire In the 1980s was 
tire subject of a series erf bitter 
bottles between housebuilders, 
planners, environmentalists 
and local residents. The latter 
often complained that they 
were in danger of being over- 
run by concrete. At the 
moment they appear to have 
the minister's ear. 


CrossRail revival backed by 130 MPs 


By Charles Batchelor, 
Tr an sport C or respondent 

Plans to revive a hill 
promoting the £2bn London 
CrossRail project were boosted 
yesterday when It was 
announced that more than 130 
MPs have put their names to a 
motion b anking the plan. 

Mr David lidington, MP for 
Aylesbury, said he expected to 


table a motion early next week 
calling for the pr i vate biD com- 
mittee to look again at the pro- 
posal to build an east-west 
unde rg ro un d rail link Cross- 
Rail, which baa tiie banking of 
British Rail and tamUmi Under- 
ground, suffered a surprise 
rejection last month when the 
four-man committee of MPs 
turned it down. 

The route did not include 


links with the rfaranai tunnel 
rail link or the Heathrow 
Express. 

“Replies are still coming in 
and I am optimistic we will 
have a lot more whims by the 
beginning of next wed,” said 
Mr Lidington. “We have 
obtained nn prwrwiBntTBrf cross- 
party support." 

hr an move. Conser- 

vative whips have given per- 


mission for parfiamentary pri- 
vate secretaries, who as part of 
the government “payroll vote” 
normally do not get involved, 
to sign the motion. Its barkers 
include seven Liberal Demo- 
crat MPs, with the remainder 
split equally among Conserva- 
tives and Labour. Mr L&fingtan 
said harking had came from 
across the country. 

Sminr ffetmw rnnor+inir the 


motion include Sir Peter Hor- 
dern, chairman of the public 
accounts mmmkmnn; Mr John 
Watts, chairman of the Trea- 
sury select committee: Sir 
Cranley Onslow, a former 
chairman of the 1922 back 
bench committee; Mr John 
Prescott, Labour employment 
spokesman; and Mr Frank Dob- 
son, Labour transport spokes- 
man 


Editor of k 
Independent 
newspapers 
agrees to 
stand down 

By ftevtnond amxkV ~ 

Mr Andreas Whtttam Sana 
the main founder of The bfe 
pendent, has agreed to stag 
tom as editor. Me Matttar 
Symonds. on* of (be three 
founder* and executive after, 
Is expected to have the groan 

Mr Whlttsm Smith, who h 
editor-in-chief and chMmaqf 
Newspaper Publishing, the 
company which owns The 
Independent and the Indepen- 
dent on Sunday. wiR rotate as 
chairman. 

He has made his fttfwtttaa 
clear to a number (rfdtadxn 
and shareholders of the com- 
pany. The decision to step 
down is his own end the tim- 
ing of the announcement 
depend on finding a suc o— e r. 

Informal soundings bam 
already taken place, and m 
process is now likely to cat 
under way in earnest A 
long list has already beta 
drawn up and sharehoWmMs 
being encouraged to add aantes 
to it. 

The list includes a number* 
broadcasters with little eaqari- 
once of newspapes such as Mr 
Jeremy Paxman. the Net* 
night presenter, and Mr Rope 
Mosey, editor of Radio .ft 
Today programme. Ms lis toy 
gun, managing director of BBC 
Radio - who used to worfcfbr 
The Guardian - is also Mag 
mentioned. 

The more orthodox nanus 
range from Mr Jonatha 
Fenby. a former IndspteA rt 
journalist who now edte Thi 
Observer, and Mr lan Har- 
greaves. deputy editor of fee 
Financial Times, to Mr Mpl 
Wade of The Daily Tatagnph 
and Mr Ian Jack, editor oftba 
Independent on Sunday. 

Mr Touy OTteUly. chain t a a 
or H.J. Heinz and of indepen- 
dent Newspapers of Ireland - 
who controls 29.9 per cv&.of 
Newspaper Publishing - bade 
further meeting yesterday wttfa 
Mr David Montgomery, chief 
executive of Mirror Group 
Newspapers, which is also 1 
significant shareholder in The 
Independent. 


Rx-FT chief. Page It 


BUSINESSES FOR SALE 


BANK OF ATHENS S A. 
ANNOUNCEMENT OF A PUBLIC TENDER 

for the purchase of dements of the assets (daims) of 

ATHENS PIPE WORKS S A. 

The BANK OP ATHENS, as special liquidator of die company ATHENS PIPE WORKS S-A. which has been 
placed under spcctal liquidation as per article 46a of Law 1892/90 by decision No. 3867/92 or tbs Athens Court of 
Appeal, the venSct of which was construed by decision No. 592/93 of the same court 

anno nnces 

a public tender for the highest bid with sealed, binding o f fer s for the purchase of dements of the assets of the 
ATHENS PIPE WORKS SA- (hereunder referred to as ’the c ompa ny*), Le. damn, as described In the Offering 

^ mdmn 

BRIEF DESCRIPTION: On the basis of the company's books, the total daims for sale amount to GrtL 
L971, 792318 as follows: 

Account No. 30 CLIENTS Grd. 159,970,386 

Account No. 31 NOTES RECEIVABLE GW. 128332,754 

Account No, 33 V ARIO US DEBTORS GnL 1,681399,168 

Account No. 36 INTERIM ACCOUNTS Gid. 1327,010 

GRAND TOTAL. GnL ^971.729,318 

OFFERING MEMORANDUM: Interested parties can receive the detailed Offering Memorandum and any other 
infonnation regarding the company^ «aete for sale following a Biriiwn rnirfeimlring of 

TERMS OF THE TENDER 

L General: The public fender for the highest bid will be executed in accordance with the provisions of article 46o of 
Law 1892/90, foe terms of foe present announcement and the terms contained in foe Offering M em orandum, 
regardless of whether they are repealed or not in the present announcement. The submission of binding offers 
implies the unreserved acceptance of all these terms. 

2. Binding Offers: In order to taknpart in foe tender, interested parties are invited to submit a sealed, written and 

binding offer op to 1200 boras on Thursday, 14th Jaiy 1994 to the Athens notary public Georjria Fiamemma at 31 
HarOaou Trikoupi Street, 4th Floor, teL +30.1-360-9476. S 

The offers must deaxly state the offered pace which most be the total price for foe company's claims for sale and the 

terms of payment in detail (cash or credit; mentioning foe number of instalments, when they foil doe and foe 
proposed rate of interest). Offers submitted beyond foe prescribed time limit will not be accepted or into 
account Also unacceptable are any clarifications, amendments, additions, i mpro v em ents, etc. to the ■ they 

have beat unsealed, unless these are requested in writing by the liquidator or by foe company's creditors 
representing a factor of more than 51%. The offers will remain binding up to the rime of adjudication and the 
signature of foe contract referred to in pan. 7 of article 46a of Law 1892/90. 

3. Letter of Gu arantee : Every offer must be accompanied by a Letter of Guarantee from a bank legally operating in 
Greece, of at least (3) months' duration and able to be extended up 10 the rime of adjudieatiOQ, to the amount ofGnL 
100 miHiou, A specimen Letter of Guarantee is contained in the Offering Memorandum. Offers not accompanied by 
a Letter of Guarantee will not be taken irnn account. In foe event ihat a trigbesr bidder fails to abide by the terms of 
foe tender, he will forfeit foe amount of the guarantee to the liquidating company as a penally and In 
c omp e nsatio n. 

4. Submission Procedure: The offers, together with the letters of guarantee most be submitted in a sealed, ojxwpe 
envelope, in pereon or by a legally authorised representative. 

5. Opening of the bids: This will be done by the notaiy public, in her office on Thursday, 14lh Inly at 1300 boom. 
All those who have submitted binding offers within the prescribed time limit are entitled to attend foie opec;g of the 
bids and »gn foe relative act. 


tut in foe event that payment b defened, the current value wfll be tatam into account with an anwial compound 
interest rate of 22%. 

7- The liquidator will invite foe highest bidder in writing to present without fail at foe time and place 

jj^d icatiai in foe invitation 10 sign foe relative contract for the transfer of the assets, in accordance with foe terms of 
ho offer nd any improved terms snggested by foe creditors and agreed to by the highest bidder. Adjudication will 
fallow the signature of the relative safe contract 



adod tom or loss of earnings, with no obligation to aecoont for ftem. Moreover, the liquidator BANK'OF ATHENS, 
U30 has the right to onnrfjter the x m nrmt of die guarantee as having been forfeited to it as a penalty rNw and 
m oan d its payment from the guarantor bank: 


8011 ^ te pe a tii t iigea of any kand for 
borne exausively by the interested buyers and by [ 
transfer the exemptions and Umiraticma of para. 13 


in foe tender and foe transfer of the assets shall be 
bidder as the case may be. It is to be noted that for this 
46a of Law 1692/90 apply. 



10- The puL^M annou nce w e m has been drafted in Greek and in English traflafetfcm, At all events foe Greek text will 
prevail. 

1L To ofatam foe Offering Memorandum and iirfnnnntinn | interested parries pm apply to foe liquidator's 

Iteoi£a8 31 ^ Conaway's offices at 260 Pfreoe Street, Afoeas, td +30-1-182JK28 and 
vsi.ujs. Fax: +30-1-4SL0171. 

Athens. 10th June 1994 
BANK OF ATHENS 


Firms add to receivership debate 


Labour 
urges tax 
boost for 
investment 

By Ivor Owen, 

Parliamentary Correspondent 

Mr Jim Cousins, a Labour 
trade and Industry spokesman, 
suggested in the Commons 
yesterday that a Labour gov- 
ernment Should gniBiider using 
the tax system to encourage 
companies to limit dividends 
and increase investment 

While making it dear that 
he was not advocating statu- 
tory control of dividends, be 
said the government should 
“steer and guide” through the 
right kind of changes in esdsfc- 
ing firamrial arrangements, 

Mr Cousins Is one ttf the few 
members of the Labour front 
bench to have nominated Mrs 
Margaret Beckett for the party 
leadership. 

He criticised institutional 
and other shareholders for 
faffing to devote enough atten- 
tion to the development pros- 
pects of the companies in 
which they invested. 

He complained that the 
hanks had put more money 
into property development “in 
five years of the 1980s" flam 
they had put in to manTi fa f hup , 
ing Industry in LB years. 

Mr Cousins said this could 
not be corrected by legislation 
- but a different kind of rela- 
tionship was needed between 
businesses enterprises, b anks 
and ins tituti onal shareholders. 

Mr Urn Sainsbury, Industry 
minister, denied that the gov- 
ernment was complacent 
about the need to encourage 
allocation of more resources to 
research and development. 


By Andrew Jock 

Two firms of chartered 
accountants yesterday added 
to the criticism of the process 
by which investigating accoun- 
tants appointed by banks to 
examine ailing companies can 
then take on the role of 
receiver. 

Kingston Smith, the 28th- 
largest firm, said there was a 
“dear conflict of interest” and 
that a negative report from, an 
accountant that led to receiver- 
ship made it impossible for the 
firm to remain objective. 

The comments followed 
those on Thursday by Mr John 
Jackson, chairman of Brown & 
Jackson, the owner of the loss- 


making Poundstretcher retail 
chain. Mr Jackson called the 
practice "objectionable" and 
called for an inquiry by the 
Bank of England and the 
accountancy bodies. 

Mr Michael Snyder, Kingston 
Smith’s senior partner, said: 
"We have had a number of cli- 
ents to whom accountants 
were appointed and played it 
safe [by recommending receiv- 
ership J. It has been a real prob- 
lem.” 

He said there was a tenden cy 
for banka to instruct the larg- 
est firms, the investigators 
from which “are most likely to 
be insolvency experts with the 
prospect of a future receiver- 
ship in their minds”. 


Mr Snyder said his firm had 
decided not to conduct any 
insolvency work because he 
believed it did not “sit happily" 
with its weak as investigating 
accountants. 

Mr Simon Rees, senior part- 
ner of Rees Pollock, said: 
“There can be a conflict of 
interest and there is certainly 
a public perception, ft would 
be advisable if investigating 
accountants could not be 
appointed receivers without 
the directors’ approval.” 

He said there was a tension 
because investigating accoun- 
tants were generally paid by 
directors of an ailing company, 
but reported to a bank. 

However, Mr Derrick Woolf; 


By John Mason, 

Law Courts Correspondent 

An accountant asked by Brest 
Walker to review transactions 
criticised in the press never 
learnt of dose links between 
the property and leisure group 
and the other companies 
involved, an Old Bailey jury 
heard yesterday. 

Mr Philip Hardacre of KFMG 
Peat Marwick was called to 
help Brent Walker answer crit- 
icisms of the arms-length 
nature of sales of film rights by 
Brent Walker's film division to 
Universal Talent Management 

The prosecution in the trial 
of Mr George Walker, the for- 
mer Brent Walker chairman 
and chief executive, alleges the 
transactions were part of a 


joint head of corporate support 
services at accountants Levy 
Gee, which specialises in boot 
vency work, said: “We would 
never get another job from a 
bank if we recommended 
receivership when it was not 
necessary.” 

Mr Allan Griffiths, vice presi- 
dent of the Society of Practitio- 
ners of Insolvency and a part- 
ner with Grant Thornton, said 
receivership was recommended 
In only a small proportion of 
investigations. 

He add e d that it would prow 
very costly and more destruc- 
tive to a business if its banks 
had to appoint as its receivers 
a separate firm which lacked 
knowledge of the company. 


fraud to boost Brent Walker's 
profits by £19m. 

Mr Walker and Mr WRfred 
Aquilina, a former Brent 
Walker finance director, both 
deny charges of theft, false 
accounting and conspiracy. Mr 
John Quested and Mr Donald 
Anderson, both former direc- 
tors of the Brent WalkvfibB 
division, are alleged to have 
been co-conspirators. 

Giving evidence, Mr Har- 
dacre said he discussed the 
transactions with the four 
men, but did cot become aware 
that UT^s bank account was 
controlled by Mr Quested and 
Mr Anderson. Nor did he know 
that some of the money paid 
by UTM would be reftmded by 
Brent Walker itanlf The trial 
continues on Monday. 


T alks on Severn 
crossing sackings 


By Roland A dbuttf i am , Wales 
and West Correspondent 

Talks between management 
arid mrinns are due to take 
place today in an effort to 
resolve a dispute that has 
halted work on the £300m sec- 
ond Severn crossing between 
Rnplnnrl and Wales. 

More than 700 constr u cti o n 
workers, who are seeking 
higher bonus payments, were 
dismissed on Thursday when 
they took part in a 24-hour 
strike after a ballot. Latag- 
GTM, the UK/French main con- 
tractor, said yesterday that the 
maw hmi been in breach of con- 
tract, hot would be invited to 
reapply for their jobs an Man- 
day under the existing terms 
and nnnritHnnfi. 


Today's meeting will be held 
with Ucatt, the construction 
uninn, and the TGWU and 
ora general unions. Mr Gra- 
ham Read, of Laing-GTM, said: 
“We’ve no wish to Shut down 
dialogue with, union officials." 

A picket line was m o unted 
yesterday outside the site of 
the privately-financed bridge, 
whidh is dng to open in spring 
1996. 

The unfmra are flflrniplaiTifng 

of low basic pay for work 
which they say is often skilled, 
arduous and dangerous. GTM- 
T ■fling - said existing bonuses 
were at least compatible with 
those in other parts of the 
industry, and that workers bad 
accepted terms and conditions 
jointly agreed by management 
and unions on the project 


KPMG ‘not told 
of Walker links 9 


Committee investigation of CSA widens 


By James Blftz 
and David Owen 

Tim Commons social security 
committee is widening the 
scope of its inquiry into the 
Child Support Agency amid 
m minting concern about the 
organisation's structure and 
competence. 

The committee, which began 
taking evidence this week, had 
intended to examine possible 
changes to the formula by 
which absent fathers make 

miiTntBnanwi pa yments to their 
famfHpg 


But MPs on the committee 
are to undertake a “root-and- 
branch" examination of its 
structure. One committee 
member said: “The focus is 
moving away from the opera 
turn of the formula to the com- 
petence and efficiency of the 
CSA itself." 

The government has repeat- 
edly said that it is keeping the 
operations of the CSA under 
constant review, awrirf signs 
that nftiHaic are increasingly 
swamped by complaints from 
absent fathers about the level 
of maintenance payments. 


But the widening of the 
social security committee’s 
inquiry is another sign that 
pressure is TnmmHng on minis- 
ters to Introduce primary legis- 
lation reforming the CSA in 
the next session of parliament 

Most of the committee’s 
recommendations from their 
first report into the CSA, pub- 
lished last year,' were imple- 
mented by the government. 
Ministers privately acknowl- 
edge that the committee’s next 
report, due in October, w&L be 
examined for its insights. 

An official at the Department 


of Social Security acknowl- 
edged this week that some 
reforms would need primary 
legislation. 

For example, changes to the 
principle whereby “dean 
break” settlements between 
divorced couples cannot be off- 
set against main fan pay- 

ments, would require a parlia- 
mentary bilL 

One of the factors which has 
heightened the committee's 
concern Is what one Tory 
described as an apparent 
"breakdown” in the CSA’s sys- 
tem of enforcement. 


a coocenea camp aign noi 

pay maintenance on behai 
absent parents”. But 
warned: "Absent parents 
not going to get away v 
it... There is an absol 
determination in the comi 
tee and the government i 
absent parents shall pay a r 
istic amount of maintenanc 
The committee is also v 
hy growing evidence t 
“ttbar the CSA’s first aim 
report nor its business p 
will be published in this par 
mantary session. 









^FINANCIAL times WEEKEND JUNE 18/JUNE 19 1994 


NEWS: UK 


Devonport dockyard to make 850 redundant 


By Bernard Gray 

Devonport Management, which 
operates the Devonport Dockyard in 

yesterday that 650 
workers are to be redundant. 

"our hundred of the job losses are 
to reduce overheads in snpport 
Operations. The remaining 450 jobs 
will go because the yard hw insuffi- 
cient work on surface ships to main- 
lam the workforce. 

Yesterday's announcement follows 


the loss of 1,000 jobs yesterday at 
two other military sites in the 
south-west - RAF Chivenor in 
Devon and the Royal Navy Engineer- 
ing College, also in Plymouth. 

Mr Peter Whitehouse, Devonport* s 
business development director, raid 
the decision to allocate a large body 
of surface-ship refit work to Rosyth 
in Fife had left Devonport short of 
surface-ship work- He added that the 
company was dependent on winning 
the refits of HMS Birmingham and 


HMS Cornwall next year to maintain 
the reduced workforce of 3,500. 

Devonport said it could not rule 
out compulsory redundancies 
because it needed to maintain high- 
tech skills In refitting ships and 
nuclear submarines. "We are 
approaching a critical mass below 
which we will be unable to retain ■ 
the capacity for surface refit work.” 
added Mr Whitehouse. 

Dr David Clark, shadow defence 
secretary, condemned the job losses 


and called on the government to 
plan defence expenditure so that 
companies had time to adjust to the 
reduced work available. 

‘There is a lack of co-or dinatio n 
which means that managements 
cannot plan their businesses," he 
said. ‘The government has exacer- 
bated a difficult situation by leaving 
defence cuts to the market” 

He said there was worse to epme 
when the defence cost review is 
completed in July. “Some 25,000 jobs 


will go when the Front line first 
cuts are completed," he added. 

Mr Jack Dromey of the TGWU 
general union can»d on the govern- 
ment to support conversion of naval 
dockyards to civilian work. He 
added: "Hie markets are out there, 
the only question is whether it goes 
to Britain or our competitor yards in 
the US or the Pacific Eton." 

Devonport insisted that it had 
tried to win civil work, inc l uding the 
12 British Steel Challenge yachts. 


and that 20 per cent of its work now 
came from nan-naval work. But it 
added that the markets were very 
competitive and slow to build up. 

Mr Dromey said the dockyards 
were shedding labour while the Min- 
istry of Defence was prepared to pick 
up the costs before they are priva- 
tised in 1296. 

The MoD said that commercial 
decisions on the workforce in the 
dockyards was a matter for the man- 
agements involved. 


Approval 
for Swans 
bidder 
delayed 

By Chris TJghe 

The French-owned company 
which wants to bny Swan 
Hunter has still not been 
approved by the Ministry of 
Defence as a suitable contrac- 
tor, with only weeks to go 
before the Mod’s award of a 
refit on which the Tyneside 
shipbuilder’s survival hfap t 
Mr Jonathan Aittinn, defence 
procurement minister, said 
yesterday that negotiations 
between Constructions M6ean- 
iques de Normandie and the 
MoD on the transfer of Swans’ 
remaining frigate contract to 
CMN were continuing. 

Swan Hunter went into 
receivership in May last year 
after failing to win an MOD 
order for a helicopter carrier. 
CMN Is the only potential bid- 
der for Swans as a going con- 
cern, but the deal is condi- 
tional on Swans winning the 
18-month refit of the landing 
ship Sir Bedivere. It feces keen 
competition from other UK 
shipyards and naval dock- 
yards. Receivers Price Water- 
house have said that if Swans 
does sot win Bedivere, closure 
of the company and the piece- 
meal sale of Its assets looks 
likely. 

Mr Aitken’s confirmation of 
continuing negotiations with 
CMN came in a Commons writ- 
ten answer to Mr Sieve Byers, 
Labour HP fur WaQsend. 

Mr Byers said it was still 
unusual for a foreign company 
to be allowed to do MoD work. 
"A degree of caution is under- 
standable, but they've had a 
long period to arrive at a con- 
clusion and the delay is caus- 
ing concern," he said. 

Mr Fred Henderson, bid- 
team leader for CMN, said 
agreement on tire transfer of 
the frigate contract, discussed 
since March, had been reached 
with MoD officials on June l, 
but ministerial approval was 
still awaited. 

He dismissed as "completely, 
absolutely and totally untrue" 
suggestions in a Commons 
question tabled by Mr Keith 
Hampson, Tory MP for Leeds 
North West, that Triacorp, a 
company controlled by CUN’S 
majority shareholders, could 
have business links with the 
Tegfane of Iraqi leader Sad dam 
Hussein. 

On Thursday, Mr Henderson 
and Mr Iskander Safa, part of 
the Christian Lebanese Safe 
family which owns most of the 
shareholding of Triacorp and 
of CMN*s parent company Sof- 
fia, met MPs to rebut any sug- 
gestion of Iraqi links. 

Hr Safe said yesterday that 
he bad acted as a ma rketing 
adviser to arms manufacturers 
In the Middle East, but not in 
Iraq. "There have never been 
links and there are no links,” 
be said. 


Goodwood 
switches to 
horsepower 

A new motor racing festival 
plans to bring back a bygone 
elegance, reports John Griffiths 


t mm x' ,'*’*■ 

i .- • "■ \ * 




'‘Glorious Goodwood", the 
clichfe title of one of tire mam 
events on the horse racing cal- 
endar, is acquiring a double 
meaning for Goodwood Com- 
pany Estate, the family-run 
company which controls com- 
mercial activities on the Duke 
of Richmond and Gordon's 
12,000 acres of West Sussex. 

This weekend the Duke’s 
heir Charles, Earl of March 
and Kinr ara, is turning the 
estate over to motor sport, for 
which it was once as famous as 
Silverstone in Northampton- 
shire is now. 

The “festival of speed” 
i nc l udes an auction of racing 
and classic cars, with the inter- 
national eiawflfe car market 
looking for a turnaround in 
prices since the start of the 
slump in 1989. 

'The festival also Includes a 
hill-climb, with 130 cars racing 
a gainst the cinriy near Good- 
wood House, intended to recre- 
ate the elegant social atmo- 
sphere of early post-war 
motorsport - “rating's equiva- 
lent of Ascot or Henley", 
according to Mr Robert Brooks, 
the Brooks auction house 
principal helping to organise 


it 


The estate is poised to 


embark on a more ambitious 
project - to bring back compe- 
tition to the nearby Goodwood 
motor racing circuit. The cir- 
cuit, which also contains an 
airfield, is used for testing and 
high-speed driving courses. 

The £5m project, which 
includes a new museum of 
motor racing, win create 300 
jobs and provide an economic 
stimulus in this mainly rural 
corner of southern England. 

The proposals have met with 
same protests, mainly from a 
private housing development 
near the circuit In response, 
the number of proposed race 
days has been cut and 
Glasgow-based Acoustic Ser- 
vices is to install acoustic bar- 
riers around the circuit to pre- 
vent excess noise spilling fato 
the countryside. 

The plans have won provi- 
sional approval from Chiches- 
ter’s environmental health 
committee and the formal plan- 
ning application was submitted 
two weeks ago. 

Goodwood Aerodrome and 
Motor Circuit, an estate com- 
pany subsidiary, has proposed 
three motor rating meetings a 
year, starting in 1996, featuring 
Aston Martins, Le Mane Jag- 
uars, Fenaris and other his- 



Tony Ancfcnm 

Stiriing service: a top auction price is expected for the 1957 Aston Martin DBR2/1 twoseater car driven at Le Mans by Stirling Moss 


tone motors tnamiy owned and 
driven by wealthy enthusiasts. 

At least 25,000 people are 
expected for this weekend's 
festival, which is expected to 
involve the most valuable col- 
lection of classic and modem 
racing cars ever to compete in 
a singe motorsport event Sev- 
eral of the 130 competing 


cars have previously been sold 
for more than £lm_ 

A pointer to what many 
might be worth now is expec- 
ted tonight whmx one of the 
world's most famous racing 
cars - the 1957 Aston Martin 
DBR2/1 driven at Le Man s by 
Stiriing Moss - goes under the 
hammer. 


It is expected that prices of 
the nearly 100 cars being 
auctioned will reflect a cau- 
tious strengthening mn» the 
spring. 

Stirling Moss, whose own 
career was cut short in a 
140mph crash at Goodwood, 
will be care of the celebrities 
driving in the event, as well as 


McLaren grand prix team 
owner Ron Dennis, and enter- 
tainer Rowan Atkinson. The 
festival will mark the lOOth 
anniversary of competitive 
motor sport. 

Competing cars flown in 
from around the world range 
from a 1894 Peugeot VIs-a-Vis, 
to the latest, grand prix cars. 


ITV quits 
race to 
televise 
lottery 

By Raymond Snoddy 


ITV yesterday withdrew from 
the contest to televise the 
National Lottery - blaming the 
Independent Television Com- 
mission’s interpretation of the 
rules. 

The withdrawal may have 
involved an element of face- 
saving; Camelot, the consor- 
tium which won the right to 
operate the National Lottery, 
had made dear it would proba- 
bly prefer to work with the 
BBC- It is holding detailed 
talks with the corporation and 
an agreement Is expected by 
the end of this month 

ITV put together a compre- 
hensive package to try to win 
the high-profile broadcast. It 
included the promise of promo- 
tion for the lottery throughout 
the ITV system, making top 
ITV stars and shows available 
for the draw, a two-year con- 
tract, a payment of more than 
£2m and the promise to share 
exclusivity with independent 
local radio or even BBC radio. 

However, ITV could not meet 
one of Camelot's specifications. 
In addition to the main 
multi-million pound lottery 
draw on Saturday evenings, 
Camelot wants a mid-week 
show with winners of scratch- 
card prizes taking part in a 
quiz show with big winnings. 

The co mmission ruled that 
ITV must retain editorial con- 
trol - meaning that it must be 
able to choose the contestants. 

Mr Andrew Quinn, ITV Net- 
work Centre chief executive, 
said yesterday. “ITV made a 
very attractive offer to Came- 
lot, and we are naturally very 
disappointed that 1TC regula- 
tions prevented us from pro- 
ceeding further.” 

The timing of the ITV 
announcement, before an 
agreement with the BBC has 
been si gned, could affect the 
terms of the deal. 

ITV is still expected to cover 
the results of the lottery - 
which is due to be launched in 
November. As soon as the win- 
ning numbers are chosen they 
could be broadcast along the 
bottom of any ITV programme 
on at the time. 


Bedfordshire may be split 


By John Authors 

Bedfordshire yesterday became 
the eighth county in the space 
of a week to be recommended 
for abolition by the Local Gov- 
ernment Commission for 
Engand- 

The commission recom- 
mends replacement of the two- 
tier system of local govern- 
ment for the county - a county 
council and four lower-tier dis- 
trict councils - by two new 
all-purpose unitary authorities, 
with boundaries created by 
merging existing districts. 

These would be North Bed- 
fordshire, merging Bedford 
borough with Mid Bedfordshire 
District Council, which 
includes Biggleswade, Flitwick 
and Sandy, and South Bedford- 
shire, formed by a merger of 
Luton borough with South 
Bedfordshire District Council, 
including Dunstable and Lb igh- 
ton Buzzard. 

The commission says this 
option would cost between £9m 
and £l2m to start up, with 
annual savings thereafter of 
between Elm and £4m. 



HERTS-. 


■ Proposed new irtafybOfdera 

’ cumrt authority bortiora 
(ulmdMnrA 


A second preference from the 
commission would split Bed- 
fordshire into three unitar y 
authorities, with Luton and 
Bedford becoming indepen- 
dently self-governing, and Mid 
and South Bedfordshire merg- 


ing to form a third unitary. 
The commission believes this 
would save £lm per year at 
most 

A final option would be to 
create a unitary authority for 
Luton alone and merge the 
other three districts. 

In a departure from its prac- 
tice in most of the recommen- 
dations of the past week, the 
commission, chaired by Sir 
John Rflnham hag not left con- 
tinuation of the two-tier status 
quo as an option for local resi- 
dents to consider. 

A nine-week consultation 
period will now start, with 
freepost questionnaires sent to 
every household in the county, 
asking people to state their 
preference between the 
options. 

This week, Berkshire, Buck- 
inghamshire, Cambridgeshire, 
Cheshire, Cumbria, Lancashire 
and Oxfordshire county coun- 
cils have all been recom- 
mended for ah ofitfan , after sim- 
ilar recommendations earlier 
in the year for Avon, Cleve- 
land, Humberside, North York- 
shire, and Somerset 


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Ulster agreement 
late, says Spring 


By Tim Coone in Dublin 

A framework agreement on 
new constitutional arrange- 
ments for Northern Ireland is 
unlikely to be completed in 
time for next mouth's UK-Irish 
summit, Mr Dick Spaing, the 
Irish foreign minister, said yes- 
terday. 

Talks between the political 
parties in the province are not 
expected to resume before the 
autumn because of slow prog- 
ress by the British and Irish 
governments in drafting the 
framework document, which is 
intended to provide a focus for 
the talks 

The governments had hoped 
to publish the document to 
coincide with a planned bilat- 
eral summit next month, but 
following a meeting of the UK- 
Irish intergovernmental con- 
ference in Dublin yesterday, 
Mr Spring admitted it would be 
“difficult to meet that time- 
table". 

Sir Patrick Mayhew, the 
Northern Ireland secretary, 
said the framework document, 
which will flesh out the princi- 
ples established in December's 
Dowing Street declaration, 
would not be “a .blueprint or 


template" to which the parties 
would have to conform. 

But he stressed that it would 
have to modification of 

the Republic’s territorial claim 
to Northern Ireland If it is to 
have any chance of success” tn 
bringing unionists to the nego- 
tiating table. “It is central to 
the problem," said Sir Patrick. 

Mr Spring said: “There has 
to be compromise on both 
tides, by both governments." 
Modification of the territorial 
claim would be in the context 
of a “balanced accommoda- 
tion" which would also involve 
modifications to the Govern- 
ment of Ireland Act of 1920. 

He referred specifically to 
Section 75 of the act, which 
states; "The supreme authority 
of the parliament of the United 
Kingdom shall remain unaf- 
fected and undiminished over 
all persons and things in 
(Northern) Ireland and every 
part thereof!" 

Sinn FNn, the political wing 
of the IRA, has indicated that 
it intends to give its “definitive 
response" to the Downing 
Street declaration early next 
month - but is not now expec- 
ted to recommend an end to 
the IRA campaign.- 


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FINANCIAL I I MI S 

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

Saturday June 18 1994 


A cautionary 
double act 


The bankers and merchants of the 
City of London witnessed another 
outbreak of prudence at the Lord 
Mayor's Mansion House dinner 
this week. The chancellor, Mr 
Kenneth Clarke, warned that 
there would be no tax cuts before 
government borrowing was under 
control, and no return to boom 
and bust For his part the gover- 
nor of the Bank of England, Mr 
Eddie George, declared that inter- 
est rates would have to rise in due 
course to moderate the pace of 
expansion. Yet the markets 
remain largely unconvinced by 
thin prudential double act. 

While short-dated gilts fell -the 
following day in response to the 
interest rate warning, long gilts, 
which, might be expected to take 
cheer from declarations of fiscal 
and monetary rectitude, also went 
into r etrea t Cautionary rhetoric 
will not be enough, it seems, to 
make a big dent in the cost of 
servicing a £38bn borrowing 
requirement, equivalent to 514 per- 
cent of GDP. Actions, not words, 
nor indeed a surfeit of bonds, are 
what investors want to see. 

At first sight, threats of a rise in 
short-term rates might seem pre- 
mature. As Mr George himself 
pointed out, though GDP is grow- 
ing at the rate of 2% per cent, the 
economy is still operating below 
capacity. Retail prices on the offi- 
cial measure of underlying infla- 
tion have increased by only 2% 
per cent on the year, or 1 % per 
cent if indirect tax increases are 
excluded. And the latest economic 
data offer further good news on 
the inflationary front 

The biggest recent worry has 
bees the 4 per cent increase in 
gaming s recorded in the year to 
March. This week's figures for the 
year to April showed a reassur- 
ingly slower increase of 3% per 
cent Growth in retail sales, mean- 
time, appears to have levelled off 
in May. Also striking; and possibly 
with a bearing on the retail sales 
picture, is the sluggish behaviour 
of the housing market 

House sales 

By historic standards houses are 
now cheap in relation to earnings. 
Prices have unquestionably picked 
up over the past 12 months, aa has 
the volume of transactions: and 
there have been quite sharp 
increases in prices in the parts at 
London where City professionals, 
whose bonuses helped inflate the 
March earnings figures, like to 
live. Yet a survey of 4 jOOO estate 
agents indicated this week that 
the volume of house sales across 
the country was down 12.4 per 
cent last month compared with 
May 1993. This the agents attri- 
bute to two causes: the chancel- 
lor’s tax increases and the deter- 
rent effect on first-time buyers of 
higher fixed-rate mortgages. 


Both suggestions make some 
sense. The amount people spend 
on housing is heavily dependent 
on what they can borrow. The 
maximum permitted borrowing is 
related to their ability to service 
the mortgage debt Because post 
tax pan-iing s have been reduced 
since April, and mortgage tax 
relief has also been reduced, pur- 
chasing power in the housing mar- 
ket has fakgn an understandable 
knock. Midland Global Markets 
estimates that the cash loss from 
the chancellor's fiscal tightening 
for a household with an average 
mortgage Is equivalent to a 1 % per 
cent rise in mortgage rates. 

Surprisingly buoyant 

Meanwhile the cost of fixed-rate 
mortgages offered by the larger 
budding societies bag gone from 
Just under 7 per cent to well over 9 
per cent This has encouraged 
some potential buyers to delay 
their purchase. And indeed the 
whole housing market is still oper- 
ating in slow motion when com- 
pared with previous economic 
cycles because the hnniring ladder 
has broken down. There are still 
well over a million people with 
negative equity in their homes. 
When this is combined with the 
impact of the recent increase in 
gilt prices on the cost of fixed-rate 
borrowing it is hardly surprising 
that the volume of transactions is 
slowing down. If anything, the 
surprise is that consumption in 
the UK, which Is heavily related to 
activity in the housing market, 
has been so buoyant in recent 
months. 

In effect the British economy is 
becoming a little more like its con- 
tinental European counterparts, 
where long-term rates of interest 
have a greater impact on the level 
of economic activity and where 
housing markets are less prone to 
boom and bust cycles. It also 
appears that the gilt market is one 
jump ahead of the Bank of 
England and the Treasury in 
restraining the pace of expansion. 
Thai Is not to say that Mr George 
will not need to raise short-term 
interest rates before long. The gilt 
market's scepticism about policy 
rests on the well-tested assump- 
tion that reduced taxes and lower 
mortgage rates win elections for 
the Tories. If the prudential dou- 
ble act is ever to convince, Messrs 
George and Clarke will probably 
have to raise short rates in order 
to bring long rates down. 

As in the US, the timing of the 
electoral cycle would point to a 
rise sooner rather than later. This 
indelicate reasoning wifi, not be 
recorded in the published minutes 
of their conversations. But it is a 
safe bet that Mr George will soul 
be making the Cass for an early 
rise in order to bring the gilt mar- 
ket round. 


S pawned in the polling 
booths of 12 nations, a 
new form of late 20thrcen- 
tury political hybrid has 
emerged this week: a 
many-headed Europe. 

After the setbacks since 1991 to 
the Maastricht treaty goal of Euro- 
pean union, most governments had 
accepted the likelihood of a multi- 
speed Europe. Already in immigra- 
tion, foreign and defence policies, as 
wen as monetary cooperation, dif- 
ferent groupings in the European 
Union have been implementing 
integration at disparate paces. 

The results of the European par- 
liament elections on June 9 and 
June 12 indicate that post-cold-war 
Europe has become still more heter- 
ogeneous. Euro-diversity now stems 
from the power of the ballot box. 

The variety of the poll results 
helps explain why the plan for 
European unity agreed In 1991 has 
been looking increasingly unrealis- 
tic. Europe’s political map, only 
three years ago paftitad in uniform 
integrations hue, is now poly- 
chrome. 

“We have a multi-polar Europe,” 
says Lord Dahrendorf, the German- 
bom sociologist and former Euro- 
pean Commissioner who is now 
Warden of St Antony's College, 
Oxford. In nearly all countries, 
there is a tendency towards greater 
splintering of political preferences.” 

An article to 1991*, co-authored 
by Mr gfl riiieinz Keif, the he ad of 
the European Commission's survey 
research on it , held out “the pros- 
pect of an EC that is united, not 
only politically, but also economi- 
cally [as] no idle dream.” That 
Eurooptimism has now withered to 
the harsher economic dimate and 
resurgence of inward-looking poli- 
cies across the EU. Mr Reif says 
electorates win again grow support- 
ive of integration as the economy 
recovers, "but the problem [of atti- 
tudes on a united Europe] as such 
will not disappear.” 

Surprisingly, the Maastricht 
treaty is being questioned even by 
some of its firmest supporters. In a 
book published this week, Mr Jac- 
ques Delore. European Commission 
president, is quoted in an interview 
as raffing the treaty over-ambitious 
and poorly drafted. "We shouldn't 
have made a treaty on political 
union, it was too soon. ”4 
to gfrmUar veto. Prof Andr6 Szfisz, 
an executive director of the Dutch 
c entr al hank , who Strongly backs 
the Maastricht aim of economic and 
monetary union (Emu), says: 
"Barely was a treaty concluded 
with such far-reaching implications 
and such lack of clarity as to what 
was intended and why.” 

Mr Szdsz says the prospective 
widening of the Union - to 15 or 16 
countries next year, 20 or more by 
early next century - increases the 
necessity of "deepening” aviating 
structures. "The alternatives are 
not either widening or deepening. It 
is both or neither.” But far more 
clarity is needed. "The authorities 
should consider how long they can 
continue to argue that monetary 
union requires economic and even 
political union”. 

The one country that clearly 
favoured European integration on 
Sunday was Austria, where 67 per 
cent of voters approved member- 
ship of the EU next year. But Aus- 
tria is aware of slackening momen- 
tum behind the Maastricht treaty. 
"On the question of institutional 
deepening, I remain rather scepti- 
cal," says Mr Manfred Scheich, Aus- 
tria’s ambassador to the EU and 
negotiator on EU accession. "Maas- 
tricht has exhausted, if not over-ex- 
hausted, the potential for qualita- 
tive steps forward to this field.” 
Austria will be part of the "hard 


FINANCIAL TIMES WEEKEND JUN E 18/JUNE 19 1994 

As political uncertainty becomes more 
widespread across Europe, Maastricht 
looks less relevant, says David Marsh 

Partners dance to 


different tunes 



core” of countries emitually partic- 
ipating in Emu, Mr Scheich pre- 
dicts. But, recalling that German 
Chancellor Helmut Kohl had 
recently queried whether Bnu was 
feasible by 1999, he added: "We all 
have doubts about the timetable 
laid down in Maastricht. In eco- 
nomic integration, we should con- 
centrate cm making the single mar- 
ket work.” 

The questioning of Maastricht Is 
Just one of Europe's uncertainties. 
Flssiparous tendencies to western 
Europe mirror the breakdown of 
political structures and allegiances 
to eastern and central Europe (far- 
ing the past five years. 

Prof Tankas Tsoukalis erf Athens 
university says cynicism about 
European union, and f stoWWiment 
politicians is part of a general mal- 
aise. "This time of pessimism fa dif- 
ferent from those to the past It is 
linked to a crisis of governance in 
most European countries.” 

According to Mr Brian Gosschalk. 
managing director of the UK’s Mori 
opinion research company, "There 
is a sense of disillusionment. 
Europe is suffering from a lack of 
positive symbols.” His organisation 
has Just carried out a poll across 
Europe indicating only 30 per cent 
of the EU electorate supports a 
“United States of Europe”, against 
50 per cent who are opposed. 

Since no member of the European 
parliament wields executive power. 
Euroelections - with a built-in ten- 


dency to amplify protest votes - 
provide only an imperfect gauge of 
the public's views on European 
integration. But the voting an June 
9 and 12 gave some pointers to polit- 
ical trends. 

• Voter turn-out across the 12 
memb ers was 57 per cent, the low- 
est of the four direct elections since 
1979. Particularly large falls came in 
Ireland, Netherlands Portugal, 
states traditionally enthusiastic 
about integration. 

• Under Maastricht and the 1987 
Stog ie European Ari*, gnvw rnwiBbto 
have given the parliament signifi- 
cant new powers to help correct 
Europe's "democratic deficit”. But a 
large proportion of voters still 
regard it with lack cl interest or 
sympathy. Additional powers for 
the parliament could thus, ironi- 
cally, widen rather than narrow the 
gap between European decision- 
makers and the people. 

• Public doubts about the role at 
the parliament could increase if the 
greater variety of parties repre- 
sented there - especially on the 
right - undermines its cohesive- 
ness. As a foretaste, Mr Silvio Ber- 
lusconi, the Italian prime minister, 
apparently failed this week to per- 
suade Mr Kohl to allow his victori- 
ous Fotza Italia movement to join 
the Christian Democrat group to 
Strasbourg. 

• Overtly anti-Maastricht parties 
<fld well in France, Belgium, Greece 
and Denmark. The conservative 


Popular Party, which topped the 
poll to Spain, is more lukewarm cm 
Emu than the governing Socialists. 
In Italy, Mr Berlusconi emerged 
with Ids position reinforced as 
Italy's first Eurasceptic prime min- 
ister since the second world war. 

• The elections brought contrast- 
ing results to France and Germany, 
the traditional driving forces for 
greater European co-operation. In 
France, the shift from mainstream 
groupings resulted in the two gov- 
erning parties, the neo-Gaullist RPR 
and centre-right UDF, gaining just 
255 per cent of the vote. 

In Germany, the governing par- 
ties showed they could still rally 
voters. Mr Kohl’s Christian Demo- 
crats and their Bavarian sister 
party, the Christian Social Union, 
achieved a bettar-tban-expected 385 
per cent, with anti-Maastricht par- 
ties failing to win seats. 

But fra gment ati on is making its 
presence felt in Germany, too. The 
score of Mr Kohl’s three coalition 
parties, fariudfag the Free Demo- 
crats, was 425 per cent, the lowest 
government result in a national 
German election since 1949. 

Low scores for left- and rightwfag 
mainstream parties in France was 
because both the RFR/UBF and the 
Socialists "mishandled the internal 
contradictions of their European 
policies”, according to Mr Didler 
WitkowsM, a political analyst at 
France’s Sofres opinion research 
company. By contrast, he says, Mr 


Kohl benefited from the general 
German perception that the country 
is now the stronger partner to the 
relationship with Paris. 

The French government wants to 
"bind” reunited Germany within a 
strengthened European framework, 
But a substantial part of the French 
electorate appears to doubt whether 
French eagerness to follow a Ger- 
man lead over Europe is to France's 
interests. Some of these doubts 
seem to be shared by Mr Edouard 
Balladur, the French prime minis- 
ter Mr Balladur. who said this 
week the splitting of the French 
presence at Strasbourg would 
weaken France's voice, warned to 
1989 It was an "illusion . . . (that] we 
can bind Germany irreversibly into 
western Europe".* 

Mr Kohl's success on Sunday 
underlines how he has become 
Europe's pivotal leader. But for bU 
the good intentions being displayed 
by Bonn ahead of Germany's six- 
month EU presidency starting next 
month, any increase in German 
assertiveness is likely to brake 
rather speed moves towards 
European unity. 

One Bonn official says Mr Kobl ben- 
efited particularly from the support 
of older people worried about ji 
resurgence of nationalism to east- 
ern Europe. He adds, however, that 
these are voters generally hostile to 
the Emu objective of replacing the 
D-Mark with a single currency. 

M r G flnther Noxmen- 
macher, co-editor 
of the conservative 
Frankfurter AU ■ 
gemeint Zeitung, 
says Mr Kohl succeeded to "defus- 
ing” monetary union as an election 
Issue. This reflects last October's 
ruling by the Federal Constitutional . 
court that Emu can come about 
only via strict fulfilment of the rig- 
orous Maastricht "convergence 
criteria”. 

Mr Hans -Joachim Veen, head of 
research at the Christian Demo- 
crats' Konrad Adenauer Foundation 
in Bonn, says two-thirds of Ger- 
mans oppose monetary union. Mr 
Kohl is seen as the "guarantor that, 
if the Ecu. or common currency, 
comes on© day. it will not be a radi- 
cal change." Since Bonn is sticking 
to the slogan that "stability [of the 
future European currency] Is more 
important than the timetable”. Mr 
Veen accepts the date for Introduc- 
ing Emu may slip beyond 1999. 

On the future, he says, about 2& 
per cent of Germans want Europe to 
deepen integration. 30 per cent 
want to widen it to the east, and 46 
per cent favour the status quo. "We 
will have to muddle through." 

An opinion poll by Germany's 
Allensbach organisation this month 
showed ambivalence in German 
attitudes to Europe. Although most 
Germans say they favour closer 
co-operation, they show strong 
opposition to concrete projects 
affecting German sovereignty. 

If in coming years the future M 
Europe is to be determined by any 
one country, it seems likely that the 
continent will be marching to music 
composed in Germany. Yet it will 
not be a fast drum-beat, rather a 
slow and cacophonous waltz with 
many pauses and contradictions. 
The travellers along the European 
trail will be moving at varying 
speeds. And some, on the evidence 
of tins week's news, will be heading 
in different directions. 

* Eumbarometer, ed. by Earthrbm 
Reif and Ronald Inglehart, (Mac- 
millan, 1991) 

♦ Defers, by Charles Grant, (Nicho- 
las Brealey. 1994) 

* R font repenser I'Europe, Le 
Monde, 16.1L89 


Men IN THE NEWS: Robert Horton and Jimmy Knapp 


Opposite sides 
of the track 


T his week's UK rail dispute 
has witnessed the sight 
of two formidable prize- 
fighters squaring up to 
one another. 

Robert Horton, chairman of Rail- 
track, gained a reputation as a cor- 
porate hatchetaan daring Ms 35- 
year climb to the top of British 
Petroleum. Jimmy Knapp, the grav- 
el-voiced general secretory of the 
RMT transport union, has acquired 
a name as a canny and experienced 
negotiator in the arcane world of 
railway industrial relations over 
more than three decades. 

They have been pitted against 
each other to the sort of industrial 
dispute which many thought had 
died with the 1970s. The battle 
between the rail union and Rail- 
track, the company which took over 
responsibility for British Rail's 
track, stations and signals in April 
led to a one-day shutdown of most 
of the rail network on Wednesday 
and the threat of farther action 
next week. 

The outcome of the first round 
appears to have been victory for 
Knapp, leaving Horton and hi* 
negotiating team looking out of 
their depth. Faced with an outra- 
geous demand from the union for a 
no-strings-attached pay rise of 11 
per cent, Railtrack’s negotiating 
team fumbled its hand 
Knapp got hold of internal com- 
pany memos, indicating an early 
willingness to make an offer of 5.7 
per cent to the union. This haft 
prompted the government to inter- 
vene to avert any risk of a settle- 
ment which would break its guide- 
lines for a public sector pay bill 
freeze. 

By allowing the dispute to flare 
up at this early stage of the privati- 
sation of the BR network, Rail track 
has damaged its own credibility wnd 


banned Its own prospects for a 
speedy and profitable flotation. This 
has awakened fears in the rest of 
the rail industry about Rail track's 
ability to manage its affairs. 

The question being asked is 
whether Horton. 54, who took up 
his £120,000-e-year job after being 
ousted as chairman anti chief execu- 
tive of BP in 1992, has made a suc- 
cessful transition from the world of 
big ofl to the rail industry. 

In his first 12 months at Rafltrack 
he has tackled a mass of adminis- 
trative detail - on property owner- 
ship, access agreements with train 
operators, and so on. It will be 
another year at least before Rail- 
track can show whether it is reduc- 
ing costs and improving the effi- 
ciency of the railway. But its ability 
to deal with the rail unions will set 
an important signal 

Horton acquired his tough nnag g 
at BP by abolishing head office com- 
mittees and catting layers of man- 
agement But a shar p decline to 
profits during the recession and a 
reputation for arrogance prompted 
his fellow directors to press for his 

resignation. 

'There is a feeling in the rail 
industry that he carried over this 
haughtiness into Rafltrack, which 
has a monopoly of the railway infra- 
structure and which is, by and 
large, dealing. with far smaller com- 
panies. “There is a perception of 
Rafltrack as an organisation with 
an arrogant self-confidence,” com- 
mented one rail industry source. 

To b lame Rafltrack for being 
remote from the mnrgms of rail- 
wayman would be a mis take, how- 
ever. Many of its senior managers, 
including chief executive John 
Edmonds and the iwdn^tp ai rela- 
tions team, are long-term railway- 
men. There is speculation to the 
industry that Horton’s numugwnmt 



style may have clashed with that of 
the old-timers. 

Certainly, morale at Rafltrack 
will not have been enhanced by 
Horton’s description of Colin Han, 
author of the memo made public by 
the union, as "an over-zealous, very 
junior manager”, to fact. Hall, pro- 
duction manager of Railtrack’s 
south zone, is fairly senior. “I don’t 
think British Rail would have fin- 
gered a member of staff in that 
way,” said an industry source. 

Horton, however, is keen to chal- 
lenge his a g gre ssi ve reputation, and 
be seen as the railway’s saviour, not 
executioner. “I have a sense of 
responsibility as the custodian of a 
great national asset,” he said 
recently. "We have got to Jolly well 
use it I would be disappointed if we 
are not carrying more passengers 
over more miles fa three yeans.” 

Jimmy Knapp's public image is 
similarly deceptive. He resembles 
the last of the trade onion dino- 
saurs (though only S3), a throwback 
to the old labour agenda of indus- 


trial strife. He once likened himself 
to "the picture of Dorian dray in 
reverse". But contrary to his 
appearance and thick, gravelly Ayr- 
shire accent Knapp is not an old- 
style autocratic union leader. 

Far from being a willing tool of 
the left wing which dominates his 
union's policy making , he is essen- 
tially a traditional socialist with a 
strong will of his own. He and his 
union activists have fought hard 
and long, but without mudh suc- 
cess, against the privatising of the 
railways and for more investment 
in the network. 

He has lost numerous battles 
when his members have refused to 
heed the union’s strike calls - over, 
for instance, engineering workshop 
closures. Knapp’s years in office 
have seen the union fighting an 
often bitter rearguard action 
against change on the railways, par- 
ticularly in defence of entrenched 
and obsolete working practices, 
such as insis ting that even new 
trains - operated only by drivers - 
should have guards on board. 

Same critics believe Knapp and 
his executive are intent on sabotag- 
ing privatisation by frightening off 
possible franchise holders with a 
display of old-style industrial 
aggression. But Knapp is simply 
trying to preserve the centralised 
industrial relations system of the 
pre-privatisation British Rail while 
working with a management more 
sensitive to commercial pressures. 

In the long run, such a strategy 
looks doomed to -defeat, because the 
railway needs to be modernised. For 
the moment Knapp appears to have 
thrown Rafltrack on to the defen- 
sive. Horton and his team have 
made a poor start - but it would be 
foolish to underestimate their abil- 
ity to recover. 

This weekend, as the two sides 
meet at Acas, the conciliation ser- 
vice, they will to be trying to bridge 
what they agree is the “enormous 
gulf" between them - before the 
next strike, due on Wednesday. 

Charles Batchelor 
and Robert Taylor 


THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY 

RACECOURSE HOLDINGS 
TRUST LIMITED 

Racecourse Holdings Trust Limited, a subsidiary of 
The Jockey Club, has acquired 
United Racecourses (Holdings) Limited, the owner of 
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in a transaction valued at £30.25 million 

J O HAMBRO MAGAN & Co 

acted as financial adviser 
to Racecourse Holdings Trust Limited 

J O HAMBRO MAGAN * COMPANY LIMITED 

32 Queen Anne’s Gate London SWlH 9AB 
Tel: 071 233 1400 Fax: 071 222 4978 

Member of The Securities and Futures Authority 


r 


a 


o 



T ^ 6 US is said to have more 
than a milli on miiHrman-pg 
It may soon have about 
13.000 more. An Alaskan 
jury nas to decide whether E x x on, 
the biggest us company by sales, 
should pay maximum punitive dam- 
ages of as much as $l5bn to those 
Alaskans who claim their lives or 
property were damaged by the 
woretever oil spill tn US waters. 

This week a federal court jury in 
Anchorage, Alaska, found that reck- 
less conduct by Exxon and Mr 
Hazelwood, the captain of 
the Exxon Valdez, contributed to 
the ship running aground shortly 
after it left the state's main oil port 
of Valdez in March 1 98 9 
Almost lim gallons of crude oil 
pUled into Prince William Sound. 
In the five years since the accident 
more than $3J3bn has seeped from 
Exxon's cash flow to cover the cost 
of uie clean-up and to settle federal 
and state c rimina l charges, 

Exxon, the world's biggest oil 
company, has also settled some civil 
claims voluntarily. But there are 
13,000 or so potential plaintifb who 
could benefit from this week's deci- 
sion, including fishermen, local 
landowners and native Americana 
Their lawyers will go before the 
same federal jury on Monday 
ask the nine women a nd three men 
to accept their claim for $l3m in 
actual damages, before setting puni- 
tive damages at glStm. The Jury is 
expected to make its derfrimn this 
summer. If it accepts the plaintiffs’ 
arguments, individual damages 
could average between SLlm^LSm. 

The case has sparked off infant 
speculation among oil industry 
observers keen to calculate the 
potential damage to Byron. it has 
also highlighted the arbitrary way 
in which damages are awarded in 


lo/junc Ay ji 77H 

Drilling for damages 


US cases of corporate negligence. IN 
addition, it could affect the tort law 
reform campaigns which are under 
way in many states in US, following 
pressure from companies which 
have been badly hit in product lia- 
bility cases. 

Mr Arthur Miller, law processor at 
Harvard Law School, notes that 
"corporate America is deathly 
afraid of punitive damages. It Is the 
lifeblood of the plaintiff " 

That point Is not lost on Mr Brian 
O'Neill, lead attorney for the plain- 
tiff in the Exxon case. The £L5hn 
punitive damages niaim jg based on 
Exxon's earnings, he says. "Exxon 
has made tn excess of $l5bn net out 
of the pipeline" which brings the oil 
from Alaska's North Slope to Val- 
dez. 

Exxon believes its past financial 
success shmiM not be an issue In 
any further damages award. But the 
court earlier rejected the company's 
request that evidence about its 
financial position should not be 
presented to jury. 

Mr John Hervey, vice-president of 
research at Wall Street brokers 
Donaldson, Lufkin Jenrette, 
believes "Exxon’s biggest liability is 
its ability to pay". 

Uncertainty over the eventual 
level of pay-out has been exacer- 
bated because the US Supreme 
Court has never set standards for 
punitive damage awards. Its guid- 
ance extends to two general areas. 
The first is that there must be some 
relationship between the punitive 
HamngiHH and the aofcrml damages. 
But there is no guidance on 
whether that relationship should be 


Robert Corzrne and Richard Waters 
on the aftermath of an oil spill 


two times, three times, or a hun- 
dred tunes. 

The Supreme Court says, 
secondly, that such awards should 
act as a deterrent, but should not be 
excessive. The vagueness of that 
guideline worries Mr Miller at Har- 
vard. "What will deter but not crip- 
ple? They've been found reckless, 
hut they're not Satanic ... It’s a 
wild card, and frankly, it’s what 
really fri ghtens companies." 

Since this — 

week’s decision, 

Exxon's market 

na pjteHjqtion hag 

fallen by about 
$5bn. Industry 
observers say a 
decision to 
impose the maxi- 
mum $15 bn pen- 


Exxon Valdez Is used 
by other companies 
as an example of how 
not to deal with 
the media 


ally could cut its equity value. But 
the sheer size and Rnanm^i 
strength of Exxon is such that the 
company's survival would not be 
jeoparded. That fact is beginning 
to sink in, and the share price, 
which plummeted by 8 per cent on 
the news, has since recovered some 
of its lost ground. 

The swing in sentiment has heq n 
encouraged in part by a revision by 
many analysts of the likely level of 
da ma ges. Many now expect a pay- 
out in the $6-$10bn range. Most are 
wary, however, of second-guessing a 
jury assessing one of the country's 
most publicised and extensive envi- 


ronmental disasters. 

Mr Miller says this particular 
case "has got to the heart of the 
economy and society. It’s not like 
dumping oil in the desert.” 

But what couM the effect of a big 
award against Exxon be on US 
industry? Mr Miller believes “corpo- 
rate America would feel its usual 
sense of outrage every time it gets 
kicked in the butt”. 

Would the deterrent effect 

be widespread? 

“That’s what it is 
supposed to do.” 
he says. “Would 
it do it? There's 
no empirical evi- 
dence. But you 
have to feel it has 
some effect" 

One of the iro- 
nies of the Exxon Valdez case Is 
that Exxon is widely viewed within 
the petroleum industry as perhaps 
the best-run and most technically 
competent oil company in the 
world. 

The plaintiffs will try to dispel 
that view by arguing that the com- 
pany consistently failed to deal with 
Captain Hazelwood's well-known 
drinking problem. 

"The people who knew about his 
problems didn't do anything. Doz- 
ens of managers - the Gulf coast 
fleet management structure, the 
west coast fleet management struc- 
ture. the company’s doctors - every 


single part of this Institution knew 
about this and didn't do anything," 
says Mr O’Neill. 

He attributes Exxon's failure in 
part to "the lack of accountability 
you get in a big organisation: [a 
belief that] someone else will do It”. 

Exxon's public aloofness may 
help the plaintiffs in malting such a 
case. The company's public rela- 
tions perfo rman ce at the time of the 
disaster was dismal- Mr Larry Rawl, 
the then chairman, declined to 
make a personal visit to the site. 
Saying it WOUld make no difference 
to the dean-up operation. 

That led to scathing treatment In 
the press, to the extent that the 
Exxon Valdez incident is used by 
other oil companies as an example 
of how not to deal with the media or 
the public In the aftermath of oil 
spills. 

In recent years Exxon has built 
OP a strong department of investor 
relations, preferring to communi- 
cate directly to shareholders rather 
than through the press and indus- 
try analysts. Observers who know 
the company well say the isolation 
may be linked to a sense that it is 
being singled out for what may 
prove the harshest punishment yet 
meted out to a US company. 

But it can at least take some com- 
fort that the incident occurred out- 
side two states where the penalties 
might have been Ear worse: Calif- 
ornia, the Exxon Valdez’s destina- 
tion on its abortive journey, has the 
country’s strictest environmental 
laws; and Texas, Exxon’s home 
base, where the juries consistently 
find for plaintiffs 



A fisherman holding a sea bird, a victim of the Exxon Valdez oil disaster 


A s the UK government 
waded through the 
latest batch cf retail 
statistics this week, it 
had reason to feel some sum- 
mer-time cheer. 

With economists watching 
carefully to see how the UK 
recovery will weather April's 
tax rises, the verdict from the 
high streets seems to be 
"steady as she goes”. 

So for there is little sign that 
consumers have responded to 
the tax increases by slashing 
spending. Retail sales volumes 
rose by a healthy 09 per ceit 
between March and May, com- 
pared to the previous three 
months, and were 3.9 per cent 
higher in May than the same 
month last year. But neither 
do consumers show any hint of 
embarking on a 19fi0s-style con- 
sumer binge. There was no 
growth in sales volumes 
between April and May and 
prices remain subdued. 

Though the signs are encour- 
aging for Mr Kenneth Clarke, 
UK chancellor, who committed 
himself to recovery free of 
boom and bust this week, 
excessive celebration could be 
premature. 

One reason is that consum- 
ers have yet to feel the full tax 
pinch. Though the Increases in 
national insurance contribu- 
tions and the cut in mortgage 
tax relief were felt in house- 
hold budgets in April, the 
introduction of value added tax 
on fuel will not hit quarterly 
fuel hills until this summer. 

A warning note against any 
premature celebration was 
sounded by this week’s Confed- 
eration of British Industry’s 
distributive trades survey. This 
showed that only 44 per cent of 
retailers believed business was 
better than a year ago. The 
proportion of retailers who 
were pessimistic about trading 
conditions Increased between 
April and May. 

This increased wariness 
about business prospects 
together with flat monthly 
sales indicated by the Central 
Statistical Office might hint at 
a tax-induced slow down. But 
most analysts warn against too 
much gloom. A recent Gallup 
survey showed that consumer 
confidence, although subdued, 
rose in May. Meanwhile the 
CSO's monthly figures need to 
be treated with caution, since 
Easter holiday spending strad- 
dled March and April this year, 
leaving Its statisticians uncer- 
tain about how to adjust tor 
the seasonal swing. 


Goodies in a 
mixed bag 

Gillian Tett and Neil Buckley 
assess trends in UK retailing 



•496 


I Retail MiM volume 

Elute*. <■ >-i. .1 


JFHAMJ JA'a.OMOj FM AM J J ASO NDJFMAM J 
I-.-, - 1992 -• 1 fl» ■ U »4 

SouoKtMMmm - .■ j - • - 


Another reason for treating 
these numbers with caution is 
that monthly figures remain 
volatile, and include a kaleido- 
scope of variations according 
to regions, sectors and types of 
stores. A better conclusion to 
draw from the divergences in 
data may be that the tax rises 
are hitting consumer groups 
differently, while the retail sec- 
tor is going through structural 


One striking trend in the CBI 
survey, evident through m uc h 
of the recession, is that large 
store chains have performed 
better than smaller groups and 
Independent stores. While 54 
per cent of multiple outlets 
said sales increased in May 
compared with the previous 
year, only 28 per cent of single 
outlets agreed. 

This may be because large 
chains can offer better value 
for money than small stores. 
As the recession made consum- 
ers more price-conscious, big 
stores were able to harness 
their buying power and the dis- 
tribution systems they devel- 
oped in the 1980s. That might 
explain some of the discrepan- 
cies between the CBI and CSO 
data, says Mr Ian Shepherdson, 
economist at Midland Global 


Markets, who says the CBI sur- 
vey gives greater weight to 
smaller - and now gloomier - 
businesses. 

Different retail sectors are 
also experiencing mixed for- 
tunes. Food retailing, for exam- 
ple, is competitive, partly due 
to structural factors. Super- 
store operators such as Salis- 
bury, Tesco and Argyll, owner 
of Safeway, have been forced to 
respond to the rapid growth of 
cut-price competitors such as 
Kwik Save, by cutting prices 
and gross profit margins. The 
“big three” groups all recently 
reported small increases so far 
this year in like-for-likfi sales 
volumes, which exclude newly- 
opened stores. 

However, supermarkets’ 
prices were in many cases 
lower than last year, resulting 
in an overall fall in the value of 
like-for-like sales. The super- 
store groups predict continuing 
slow growth and pressure on 
prices, holding margins down. 

The Do-It-Yourself sector, 
which like food retailing 
increased floorspace and 
pushed up mar gins in the late 
1980s, continues to struggle, 
owing partly to the uncertainty 

in tha housing market.. 

Clothing, however, is per- 


forming better. Marks and 
Spencer, Next and Storehouse 
all recently announced healthy 
Increases in sales, and in the 
CBI survey 66 per cent of cloth- 
ing retailers and 85 per cent of 
footwear and leather retailers 
said sales were up in May. 

Not just sectors, but differ- 
ent regions are seeing different 
levels of performanca 
Mr John Bowes, cor porate 
marketing director for CWS, 
the largest co-operative 
retailer, which has both small 
shops and su perstores across 
the UK, said Scotland and 
Northern I reland were trading 
well, and south-east England 
was recovering: The northeast 
remained competitive, while 
trading was difficult in areas of 
high unemployment such as 
the Midlands 

There is also evidence to sug- 
gest that people on lower 
incomes suffered to a greater 
extent from the April tax 
increases. Shoprite, the Scot- 
tish discount food retailer, 
which targets the less well-off 
C2DE customers, recently 
announced profit figures wen 
below expectations. Kwik Save, 
the UK’s largest discount food 
retailer, with a similar cus- 
tomer profile to Shoprite, was 
one of the few other retailers 
to agree that the tax increases 
had hit its customers hard. 

N early all retailers 
and economists 
agree that the 1990s 
recession, unlike 
that of the 1980s, has left con- 
sumers value-conscious, and 
likely to remain so when the 
good times return. “There is 
more money for discretionary 
spending, but it needs the right 
things, good products at good 
prices, to bring it out," said Mr 
Kevin Hawkins, corporate 
affairs director at WJL Smith. 

These pressures could 
explain why retailers remain 
gloomy in CBI surveys despite 
good volumes, says Mr Michael 
Saunders, UK economist at Sal- 
amon Brothers. Indeed Mr 
James May, director-general of 
the British Retail Consortium, 
which represents more than 90 
per cent of retailers, argues 
that weak margins may yet 
-force shops to push up prices. 

But there is little sign of 
upward price pressure at the 
moment. And while nanny con- 
sumers may not make for 
happy shop-owners, they are 
good news for a government 
trying to keep recovery on 
course without overheating. 


Rights and responsibility 

George Graham on the rethinking of the black agenda in the US 


W e have locked arms and our 
circle will not be broken,” 
proclaimed the Reverend 
Benjamin Chavis, executive 
director of the Na tional Association for 
the Advancement of Coined People this 
week. He was speaking at the end of a 
three-day summit in Baltimore of more 
than 100 civil rights activists, church dig- 
nitaries, academics and businessmen, 
which had ended with pledges to follow a 
united black agenda. 

Mr Chavis's ringing tones echoed the 
proudest years of the civil rights move- 
ment in the 1980s, hut the gathering drew 
scepticism from many blade commentators 
and politicians: this was a summit of lead- 
ers whose credentials have been called 
into question. Memories revived from 
three decades ago did not dispel the 
impression that the leaders were still 
fighting 1960s ware and are not equipped 
to tackle 1990s problems - such as eco- 
nomic disparities and urban violence, the 
causes of which are not only racial dis- 
crimination. 

The prominent civil rights era activist, 
Mr Andrew Young, who was President 
Jimmy Carter's ambassador to the United 
Nations, once argued the role of the black 
leader is to lead whites more than blacks. 
"Black people are the victims of economic 
inequities in our society and, to change 
those, the people we really have to change 
are white," he said. 

But while there is still much to be done 
to educate white Americans about con- 
tinuing racism and discrimination, many 
A frrfffln-Amflriflftns feel the time h as come 
to look inward for help. “Let's stop beg- 
ging. Let's start doing it for ourselves,” 
commented one black urban activist 
That will require considerable change in 
many of the organisations represented at 
the Baltimore meeting, notably the 
NAACP itself. 

The NAACP is the oldest US civil rights 
organisation but even in the 1960s, it was 
to a great extent bypassed by more ener- 
getic movements such as Dr Martin 
Luther King’s Southern Christian Leader- 
ship Conference. Its great achievements 
came mostly in influencing civil rights leg- 
islation, and litigation against discrimina- 
tory laws, at a time when it seemed that if 
legal segregation of blacks and whites 
could he banished, everything else would 
follow. "The world was simple then; our 
enemy was an easy target” says Professor 
Henr y Louis Gates Jr, chairman of the 
department of Afro-American studies at 
Harvard University. 

Today, with most legal obstructions to 
equality removed, the NAACP seems to 
many hianka a less relevant organisation, 
and its membership has halved to about 
500,000 from its peak. 



Louis Farrakhan: co n troversial figure 

Mr Chavis, a 46-year-old firebrand who 
took over the NAACP leadership last year, 
has tried to make the organisation more 
relevant, particularly to younger blacks: 
for insta n ce by organising meetings with 
inner-city gang leaders. Ye* these steps 
have alienated some older NAACP mem- 
bers, not to mention corporate sponsors. 

Other groups represented in Baltimore 
have also seen their influence decline. 
Church ministers, though they still hold 
sway among many lower income groups, 
are not the dominating voices they were, 

Black intellectuals want 
a less dogmatic approach 
by both black and white 
leaders than has been the 
case in past decades 

and have lost much of their hold over 
better-educated, middle-class blacks. 

Two groups were glaringly absent at the 
Baltimore summit. First, black politicians. 
Although black political infi penns is dis- 
proportionately small in relation to the US 
black population, the number of black 
elected officials continues to grow rapidly, 
nTimhhig in the past decade by 43 per cent 
to more than 7,500, according to the Joint 
Center for Political and Economic Studies, 
a Washington think-tank. There are now 
40 African-American members of Congress 
and increasing numbers of black mayors . 

The second group poorly represented at 
thto week’s summit was the urban, black 
young whose violence, low life expectancy 
and dismal economic prospects are among 
the most pressing problems feeing the 
African-American community today. 


In the past, the Reverend Jesse Jackson 
could legitimately claim to speak, at least 
sometimes, on behalf of this disaffected 
group, but his career peaked with his cam- 
paign for the US presidency in 1988. 

One delegate at the Baltimore meeting 
who does reach today's angry black 
youths was Mr Louis Farrakhan, head of 
the Nation of Islam, a Mack nationalist 
movement whose anti-while rhetoric has 
made him, for whites, the most controver- 
sial figure in black America today. 

But even those blacks who denounce his 
hatred of whites acclaim the more positive 
side of Mr Farrakhan’s message: that 
blacks must build their future for them- 
selves and not wait for whites to give it 
them - an argum ent which hnw more in 
co mmon with the “empo w er m ent" agenda 
of right-wing Republicans. 

It is partly because white groups contin- 
ually call an black leaders to denounce Mr 
Farrakhan that his appeal has grown so 
much. 

But the anger of Jewish groups and the 
discomfort of some black politicians at Mr 
Farrakhan’s presence at the Baltimore 
summit diverted attention from other 
issues confronting Africaur American lead- 
ers: gaping economic disparities and inner- 
city violence. Professor Cornel West, pro- 
fessor of religion and director of 
Afro-American studies at Princeton Uni- 
versity, also argues in his book, Race Mat- 
ters, that a pervasive nihilism is "the most 
basic issue now feeing black America”. 

The statistics are grim. Black unemploy- 
ment is more than 12 par cent, nearly 
twice the national rate, according to the 
National Urban League, the civil rights 
group. A third of black Americans live 
below the official poverty fine. Homicide 
remains the largest cause of death for 
black males aged 15-34. Suicide, on c e half 
as common among blacks as among 
whites, has climbed, for black men. to 
white rates. 

There is a consensus among black intel- 
lectuals that to solve this morass of prob- 
lems requires a less dogmatic approach by 
both black and white leaders than has 
been the case over the past few decades. 
The white dominated government, and 
society, need to improve opportunities and 
remove inequalities but blacks need to 
take greater responsibility for their future. 

"The liberal notion that more govern- 
ment programmes can solve racial prob- 
lems is simplistic - precisely because It 
focuses solely on the economic dimension. 
And the conservative idea that what is 
needed is a change tn the moral behaviour 
of poor black urban dwellers highlights 
immoral actions while ignoring public 
responsibility for the immoral circum- 
stances that haunt our fellow citizens," 
writes Professor West 


Consumers should benefit 
more on electricity prices 


From Mr KH Prior. 

Sir, Michael Smith’s well-in- 
formed article, “Don’t shoot, 
nn only the regulator" (June 
15), pointed out the importance 
of Professor Stephen Little- 
child’s Distribution Price 
Review to electricity users. 
This is the opportunity to 
ensure a more equitable bal- 
ance of financial benefits 
between shareholders and con- 
sumers. While there has been a 
marked improvement in the 
standard of service and supply 

reliability, non-investing con- 
sumers have enjoyed compara- 
tively limited financial benefit 

The regional electricity com- 
panies have dung to the upper 


limits of the price formula 
rather than pass on some of 
their cost savings to the con- 
sumer. Consumer groups real- 
ise there is scope for a fell in 
prices erf 15 per cent or more. 
Privatisation is improving the 
consumer’s lot but, as the 
RECs with their newly found 
independence have chosen not 
to act, the regulator is capable 
of putting matters right - with 
the foil support of consumers, 
and very likely the Monopolies 
and Mergers Commission. 

KH Prior. 

chairman. Electricity Consum- 
ers Committee (southern 
region. }, 

Lynchmere, Sussex 


The train running early is late 


Pmm Ur John Godfrey. 

Sir. Does the permanent way 
have a recurring tendency to 
temporary derailment? 

As evidence, may I ate some- 
thing that we passengers were 
told by loudspeaker on a long 
stationary tube train recently? 
“We regret to announce 
You will be running late. 


Due to an unusual delay. 
Thank you for travelling 
On the Central Line. 

The present delay 
Was caused because 
We have been running early.' 
John Godfrey, 

41 Lmaford Road, 

London, 

NW5 2LG 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

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

Life assurance: the wrongs and rights 


From Mr Joel Jqffe. 

Sir, It is astonishing that life 
assurance offices should 
respond to Peter Marsh’s inves- 
tigative journalism ("When he 

dies my dear, all this will be 
yours" , June 11/12) with cries 
of the industry being the sub- 
ject of a press vendetta. 

It Is not the press which 
imposed the recent array of 
ftnpfl on many leading life com- 
panies for contravening the 
regulations, designed to pro- 
tect consumers; nor is it the 
press which suspended the 
entire Norwich Union direct 
salesforce; nor did financial 
journalists invent the home 
income scandal, the personal 
pensions scandal or the statis- 
tics showing that one third of 
life policies lapse within two 
years. 

It is the life assurance indus- 
try itself which has, by its 
unprincipled disreg ard for the 
best interests of the public, 
earned its present appalling 


reputation. An expression of 
deep regret and a promise of 
urgent reform would have been 
the more appropriate response. 

The public has reason to be 
grateful to financial journalists 
for their incisive reportage, 
which has stirred the regula- 
tors into taking a measure of 
effective action to protect con- 
sumers against th* 1 activities of 
many life companies. 

As a result, standards are 
be ginning to improve but there 
is a very long way to go. Finan- 
cial journalists can make a fur- 
ther contribution to speeding 
up the process by raising the 
question of accountability. 
Clearly it is the directors and 
management of life offices that 
should be held accountable for 
their companies’ selling mal- 
practices, rather than the indi- 
vidual sales people. 

The long-awaited change In 
regulation will begin with 
miraculous speed on the day 
the regulators take public 


action against chief executives 
of life offices which blatantly 
disregard their regulations. 
Joel Jofib, 

Uddxngton Manor, The Street, 
Lidding ton, Swindon SN4 0HD 

From Mr Malcolm Rose. 

Sir, I am rather disappointed 
that Peter Marsh's article 
lacked any semblance of bal- 
anca Most of us in this indus- 
try abhor malpractice and 
would like to see any practitio- 
ner found guilty of fraud, or 
misrepresentation locked away 
for a very tong time. Only then 
will the public enjoy a reason- 
able level of protection. It is a 
matter of some regret that the 
courts have failed to pass 
severe custodial sentences 
when given the opportunity. 

You have chosen to highlight 
the sour mmmpnte of industry 
Mures, but I challenge you to 
produce a single widow who 
will complain that her late hus- 
band was pressured into buy- 


ing too much life insurance. 
The client of the Pegasus sales 
lady who had to struggle to 
meet his or her premiums will, 
I am sure, be eternally grateful 
in the event of a claim. Simi- 
larly, the disillusioned Allied 
Dunbar salesman should con- 
sider his own shortcomings 
rather than criticise the prod- 
ucts of a group whose con- 
tracts are vastly superior to 
those peddled by most banks 
and building societies. 

The hard-working, enthusias- 
tic and caring life insurance 
sales person has nothing to be 
ashamed of. Life insurance 
sales people will continue to 
perform a valuable function 
until the majority of the popu- 
lation makes adequate provi- 
sion for themselves and their 
families without the need for 
persuasion. 

Malcolm A Rose, 

The Funding Partnership, 

33 Goodyers Avenue, 

Radlett, Herts WD7 8AZ 


Rutland, contradictions 
over costings and the 
government grant factor 


From Mr Andrew Makey. 

Sir, You state in your leader 
“Councils and the Concorde 
fallacy” (June 14) that indepen- 
dence for Rutland could mean 
up to an extra £125 on each 
Rutland eris council tax hill. As 
you will know, this council 
maintains that the effect of 
Rutland gaming unitary status 
will be broadly cost-neotraL 

May I explain the apparent 
contradictions between the two 
sets of costings. The Local Gov- 
ernment Commission acknowl- 
edges in its draft proposals 
that its figures are based on 
the Ernst & Young model 
which generally reflects cur- 
rent county council manage- 
ment structures. This model 
was developed to provide 
robust costings for comparison 
purposes over review areas as 
a whole rather than small 
parts of them. 

Our model, on the other 
hand, is specifically designed 
to be applicable to the likely 
management structure of an 
authority the size of Rutland, 
taking into account the reduc- 


tion in overheads and bureau- 
cracy which would result from 
the creation of such a unitary 
authority. Taking this model. 
Independence for Rutland 
would be broadly cost-neutral 
to the local taxpayer. 

Both sets of figures can 
therefore be said to be correct, 
but both are in any case purely 
hypothetical. It would be a 
dangerous exercise to try to 
foretell council tax levels in 
1996 since more than 70 per 
cent of council funding comes 
directly from central govern- 
ment. indeed, the commission 
itself acknowledges that the 
impact on council tax would 
de pend upon future decisions 
by central government about 
the distribution of grant 

That is the biggest and most 
unpredictable variable, not the 
figures under discussion here. 
Andrew Makey, 
chairman, local government 
reorganisation committee, 
Rutland District Council, 


Oakham, 

Rutland LE1S 6HP 


\ 


COMPANY NEWS: UK 


Greycoat £40m in the 
red and calls for £47m 


By Simon Davies 

Greycoat, the property 
developer rescued from the 
brink of collapse last Novem- 
ber, has launched a £47m 
rights issue to purchase and 
refinance the remaining 50 per 
cent of 123/151 Buckingham 
Palace Road, London, which 
has been valued at £L59m. 

ft Is paying £l&2m to Sir 
Robert McAlpfne Group’s half 
of the 386,600 sq ft office and 
retail property. 

Greycoat also announced a 
pre-tax loss of £4Cm (£167tn) for 
the year to end-March. How- 
ever, the company returned to 
profitability In fee second half 
wife £3.5m pretax. Losses per 
share woe 105p (9SL5p). 

Mr Richard Guignard, joint 
managing director, described 
the latest transaction as “a 
housekeeping exercise”. A 
£125m loan attached to fee 
property was due for repay- 
ment next January, giving 
Greycoat the choice between 
buying fee remaining halt or 
sailing fee property. 1 he loan 
will be replaced with a 2815m 
facility from Hypo Bank, and 
the remaining £415m will be 
covered by the rights proceeds 
and internal resources. 


The cash call will allow 
Greycoat to progress beyond 
mere survival, but fee stock 
market reacted nw»nthn«bsti . 
cally to the deaL The shares 
fell l%p to l5%p. 

Some analysts expressed 
concern over the proximity to 
last November's restructaring 
by Hr Brian person and Mr 
Julian Treger, fee South Afri- 
can investors who enabled the 
company to avoid receivership. 

Mr Treger said: “It is a one- 
off opportunity to consolidate 
the portfolio, as part of the 
ongoing restructuring of Grey- 
coat.” 

The offer is on a 3-fbr-S basis 
at 13p, a discount of 24 per cent 
to fee previous dosing price. 
The is underwritten by 
NM Rothschild and Samuel 
Montagu. 

The rights will dilute net 
asset value from 17.4p, as of 
March, to 15 .9p, but it is suffi- 
ciently above fee rights price 
to encourage support ter the 
issue. 

Gearing will tell from 152 per 
cent to 137 per cent 

Greycoat will emerge wife 
100 per cent ownership of two 
gi gntfiflflTit properties, and an 
option an a third, 

Britannic House, in London’s 


Finsbury Circus, was effec- 
tively ring-fenced to protect 
Greycoat, but the company can 
repurchase it up to 2002, at a 
price which reflects the obliga- 
tions of fee debtors rather than 
the value of the property. 

Once fee property value, cur- 
rently 2133m, exceeds the 
£I5Qm value of debt, virtually 
all additional valuation 
increase would accrue to share- 
holders, to Guignard said. 

In addition. Greycoat 
revealed feat it planned to pro- 
ceed with the controversial 
£350m development of Pater- 
noster Square in early 1995, 
subject to securing develop- 
ment financing. 

it owns ZL per cent of fee 
City project, which, last August 
received planning consents. Its 
£15 m investment has been 
written down to no thing , and 
Mr Guignard was adamant 
feat Greycoat would not invest 
further capital into develop- 
ment projects. However, Grey- 
coat’s project management role 
could leave it with a carrying 
stake In fee largest new devel- 
opment in fee City. 

Following the rights issue, 
the company is proposing a 
l-for-10 share consolidation. 

See Lex 


British Vita shares 
fall after statement 


Golden Vale 
shares drop 
30% on warning 

By Tim Coone in Dublin 

Shares in Golden Vale, the 
Irish dairy group, closed 30 
per cent down at 69p yester- 
day, after plunging as low as 
55p during fee day, in reaction 
to its profits warning on 
Thursday evening, delivered 
after the market close. 

The company said its pre-tax 
profits for 1904 would be 
about one third down on 
1993’s I£19m because of falling 
prices for its products, tighter 
margins being forced an it by 
multiple retailers, unantici- 
pated rationalisation costs, 
and a strengthening Irish cur- 
rency. 

These factors have not been 
“folly matched” yet by a 
reduction in prices paid to its 
farmer-suppliers for its milk 
supplies, directors said. 

Dublin analysis do not aniic- 
ipate similar profits revisions 
for fee other Irish food compa- 
nies. 


By David Wighton 

Shares in British Vita slipped 
16p to 259p yesterday after the 
foam and fibre group said that 
it was finding it hard to 
recover higher raw material 
costs from its customers in the 
summer months. 

Some analysts reacted by 
trimming their forecasts 
although fee company subse- 
quently stressed that the state- 
ment was not meant as a profit 
warning: 

Mr Jim Mercer, who heads 
fee European rubber and plas- 
tics operations, said that the 
situation had not worsened 
since the annual results were 
announced in March. “It cer- 
tainly h«g not deteriorated and 
in some areas our ability to 
push through price increases 
has improved.” he said. 

In yesterday's statement the 
company said: “While raw 
materials prices, especially in 
foam chemicals, have 


increased, the levels of demand 
over the summer months in 
several marirets maifQ it diffi- 
cult to recover these costs 
until the autumn.” 

The statement accompanied 
news of the acquisition for 
£9 .36m of Jackdaw Polymers, a 
Lancashire-based group 
involved in the compounding 

Of en g ineerin g plastics. 

British Vita said the com- 
pany, which has sales of more 
than £iQm and has been consis- 
tently profitable, extended the 
scope of its existing compound- 
ing activities and comple- 
mented its engineering thermo- 
plastic she et business. 

The consideration, v.i -2Sm of 
which has been deferred under 
warranty arrangements, is 
being satisfied by £f£6 1m eash 
and fee issue of 936^30 shares. 

Smith New Court has cut its 
profits forecast for fee present 
year from 247.5m to £45m and 
from £55m to £52m for next 
year. 


Rugby 
makes 
$93m US 
purchase 

By Andrew Taylor, 

C ons tru cti on Correspondent 

Rugby, fee cement group, has 
paid $93m (££L2m) to acquire 
fee US bunding materials dis- 
tribution business of Buna!, 
fee distribution *nd cigarette 
filters group. 

To pay for the acquisition, 
Rugby is placing 489m shares 
with institutional in vestors at 
125p each. The placing is 
being organised by Schroder*. 

Following the announce- 
ment the cement group's share 
price rose by 3p to 134p- 

BunzI said the sale would 
result in a net goodwill charge 
of about in the cnrr m t 

fin an rial year. It intends to 
use the sale proceeds to cut 
group borrowings. 

Its share price yesterday 
was unchanged at 164p- 

Mr Peter Carr, Rugby's man- 
aging director, said the acqui- 
sition was expected to be earn- 
ings enhancing in the first 
year. 

The group is buying a distri- 
bution business with 7 
branches in north-eastern 
states; 10 branches in the mid- 
west and 8 in the west. Prod- 
ucts supplied include doors, 
windows, roofing materials, 
ceiling and floor tfles, lumber 
and plywood. 

It made an operating profit 
last year of 9&4m ($L2m in 
1992) on sales of 8359m 
(8364m). 1 he business reported 
net operating assets of $76Jtm 
at fee end of December. 

Mr Carr said feat the acqui- 
sition would complement Rug- 
by's existing US operations 
involving 22 wholesale distri- 
bution branches in the eastern 
part of fee country. 

“Where overlap occurs its 
impact is generally limited by 
differences in the product 
range and customer base,” 
said Mr Carr. 

The deal would enhance 
Rugby's purchasing power, 
allow cross-fertilisation of 
product lines and increase fee 
company's ability to service 
national and regional custom- 
os, he added. 

The US was recovering from 
recession with a consensus 
forecast of 3.6 per cent eco- 
nomic growth this year. 

The final purchase price will 
depend upon a revaluation of 
Bunzl Bunding Supply's net 
operating assets, subject to a 
ceiling of 894m. 


Cater Allen in f 23m acquisition 


By John Gappor 
and Norma Cohen 

Cater Allen Holdings, the 
discount house and banking 
group, is raising via a 
rights issue to firwmRg expan- 
sion, tnpTnritng fee fiSm acqui- 
sition of the banking 
operations of Jupiter T yndall, 
the asset management group. 

The group also announced 
pre-tax profits of £17.1m 
(£L89m) for the year to April 
30. Profits for the discount 
home fell to £5.8m (£i0.7m) 
because of last year's windfall 
from faffing interest rates. 

to James Barclay, chairman 

and manag in g director, frmphn. 

cireH that “the dividend policy 
of steady but sustainable 
growth was still firmly in 
place” despite proposing an 
unchanged final dividend of 
20p making a total of 2$> (27p), 
payable from lower earnings 


per share of 49p (56p). 

The deal wfil increase Jupi- 
ter Tyndall's net assets by £9“ 
and leave it wife cash erf £30m, 
with which Jupiter said it 
would "aggressively pursue 
growth in our investment man- 
agement business" as well as 
increasing shareholders funds. 

It may acquire Queen Anne’s 
Gate Asset Management, the 
fund management company 
responsible for investing the 

v?hn in «mw»fce of fee privatised 

wate companies. 

The performance of Queen 
Anne’s Gate, which has been 
on the market for several 
months, has been consistently 
above-average. 

However, it has few cheats 
and manages a large sum for 
each, making it vulnerable to a 
sudden loss of business. 

eater's l-for-3 rights issue 
will be priced at 410p per 
share, an 18 per cent discount 


to the 518p at which fee shares 
closed unchanged, less the 

final dividend. 

Jupiter's shares were also 
unchanged, at 255p. 

Mr Barclay said fee Jupiter 
hanbs acquisition would dou- 
ble retail banking deposits to 
t ffinm and reinforce its status 
as & specialist deposit taker. 

The effective price was 
£15 sm because Cater would be 
able to free £7.5m of capital by 
^wnHining its bank arm wife 
Jupiter’s. It would eliminate 
some separate capitalisation 
and cut regulatory capital 
needs. 

The consolidated pre-tax 
profits of the Jupiter banks fell 
to £2.76m in the year to Decem- 
ber 31, against £3 36m, due to 
lower interest rates. 

The stated profit would have 
been some £168.000 lower 
under eater’s accounting poli- 
cies. 


Mr Barclay said Cater would 
use a further part of the pro. 
ceeds of the issue to buy a 
■•substantial - trust company in 
Jersey, with which It was $ 
negotiations. It would alto 
apply extra capital to ils dis- 
count house and stock kodfcg 
arms. 

• COMBBNT 

Unchanged shares indicated a 
logical deal for both parties, 
with Jupiter obtaining enough 
for a bank which it gained as 
part of an earlier acquisition, 
and Cater broadening further 
from tts discount house roots. 
After re jigging the capital. 
Cater is paring a historic mul* 
tiple of about 11.5. That Is fat 
line with similar deposit-tak- 
ers. But the Jupiter banks aro 
not growing fast, and will have 
to be galvanised by the new 
management to ensure that the 
price is worthwhile. 


Portsmouth & Sunderland up E*^tumei 
20% but sees growth slowing underwriters 


By Paggy HaOnger 

Portsmouth & Sunderland 
Newspapers, the publishing 
and retailing group, yester da y 
warned profits growth was 
expected to slow following fee 
loss of tWO substantial printing- 
contracts over fee next two 
years. 

Mr Christopher Brims, 
executive, described the 
group’s 20 per cent increase in 
pre-tax profit s to £7-5m as sat- 
isfactory to spite of difficult 
trading conditions. 

Sales for the 53 weeks to 
April 2 rose to £1 12.1m, com- 
pared wife £lG3m for the previ- 
ous 52 weeks. Stripping out the 


were 6 per cent higher, on 
sales up by 7 percent 

Mr Brims said P&S would 
face a difficult two years, fol- 
lowing the decision by the 
Daily Mail not to renew its 
printing contract The Indepen- 
dent contract which expires to 
1996, was also under review. 
These two contracts repre- 
sented two thirds of the tutm 
printing business. 

The chief executive was con- 
fident growth in the publishing 
and retail business would off- 
set toe loss of the contracts. 

Advertising was reviving 
across the board. The strongest 
growth came from recruitment 


The convenience store divi- 
sion increased profits by 25 per 
cent on sales 11 per cent higher 
for fee comparable 52 weeks. 
This was partly due to expan- 
sion - wing outlets were added. 

Publishing increased profits 
by 23 per cent an sales ahead 3 
per cent This was due both to 
increased ad ver t isin g revenues 
atiri the benefits of rationalisa- 
tion. P&S took an exceptional 
charge of £1.7m to pay for 
rationalisation. 

Earning s increased were 13 
per cent ahead to 4lp. Exclu- 
ding the extra week, earnings 
fell by l per cent. 

The final dividend is raised 
to 7„52p for a total of I0.64p 
(9.46p). 


By Simon Davies 

The gloom continued . for 
underwriters of the 8858ft 
Eurotunnel rights isso* yester- 
day. as the share price 
dropped a further 13p to 288p, 
leaving it just 23p above fee 
rights price. 

Brokers r eported a substan- 
tial Increase in sabs from both 
US and French small share- 
holders, with some 3.7m Euro- 
tunnel units traded, the high- 
est level since the pricing was 
announced, and dose to 8m of 
the nil-paid shares. 

The offer closes at 3pm next 
Wednesday. Given fee 16 per 
cent share price fall fast week, 
and no signs of tostitotionil 
support, there is an Inoettinc 
possibility that underwriters 
will be called upon to cover t 
sizeable tike of the feme. 

At the time toe tame was 
announced, the talk was of 
artificial devaluation of the 
share price through short aril- 
tog: and it bounced strongly ia 
the aftermath. 

But there baa been no more 
good news to support fee 
shares, and once more inves- 
tors have focused on the fang 
distance to profitability and 
dividends, and news reports of 
breakdowns to the freight ser- 
vice. 

Monday will be fee last fay 
trading the nil-paid rights 
shares, and the outcome of the 
issue should become dearer. 


extra week, pre-tax profits 


advertising, which was 20 per 
cent up in volume. 


Ex-FT chief joins O’Reilly group 


By Raymond Snoddy 

Mr David Palmer, the fanner chief executive erf 
the Financial Times Group, is to be managing 
director of Independsxt Newspapers (Ireland), 
the Irish publis hing division of Mr Tony 
O’Reilly’s expanding mArfta group. 

As well as being responsible for the Dublin- 
based group's Irish tittes _ the Irish Inde- 
pendent, Exr mht g Herald and Sunday Indepen- 
dent - Mr Palmer will join the main board. 

Mr Palmer. 53, spent 29 years wife the FT as 
reporter, news editor and deputy editor before 
moving into newspaper management. When he 
left tiie FT abruptly in April 1993, Pearson, the 
paper's owners, cited “differences in manage- 
ment style”. 


Mr O’Reilly, chairman of HJ Heinz as well as 
rbairmaw of Independent Newspapers, has bees 
Wring to Mr Palmer for several months follow- 
ing the departure of the previous managing 
director, Mr Joe Hayes, to March to pursue 
other b usiness interests. 

Mr Palmer, educated at Eton and Oxford, will 
move to Dublin to take up his new appointment 
In the mid 1980s the fanner FT chief executive 
was to charge of a £75m investment plan to 
introduce photocomposition at the paper and 
build its new Docklands printing plant 
Although Independent Newspapers has expan- 
ded into South Africa, France, Mexico, the UK 
and Australia, fee core is still its main Irish 
newspapers. Last year pre-tax profits rose 81 per 
cent to I£29m (£28.4m). 


Wainhomes beats float forecast with £6.2m 


By Andrew Taylor, 

Construction Correspondent 

Wainhomes, the Chester-based house- 
builder which came to the market to the 
spring, beat its flotation forecast with 
pretax profits of £6 .22m, comp a red wife 
£&29m, during the 12 months to fee end 
of March. 

Turnover rose by 22 per emit to £89.4m 
(£56^m). The pre-tax figure was struck 


after lower interest charges of £866,000 
(£L17m). Earnings per share also rose by 
22 per cent, from 7.9p to 9.6p. 

Stock market sentiment has turned 
against housebuilders since the company 
floated at 170p. Yesterday the shares fell 
lp to 134p. 

Wainhomes sold a record 965 homes 
last year, 22 per cent more than in 
1992-93. Due to increased land costs and 
reduced selling prices, marg ins declined 


slightly dnying the 12 months, the com- 
pany said. 

The number of housing plots it con- 
trolled for development rose over the year 
by more than 700 to 3,102. 

Mr Smith said: “The strong demand 
experienced at fee beginning of 1994 has 
continued into the new financial year and 
consequently our cumulative sales to mid- 
June are 46 per cent ahead of fee compar- 
ative period last year.” 


Challenging the traditions 

Richard Lapper looks at Benfield’s new £50m reinsurance venture 



writers who are prepared to 
handle relatively large floain 
Benfield’s position to the 


T he launch this week of 
Benfiald Re, a new £50m 
London-based reinsur- 
ance company, mi gh t at first 
sight appear unexceptional. 
After all the company is only 
one of a number of new ven- 
tures in the international 
catastrophe reinsurance mar- 
ket over the last 18 months, 
with more than £3bn pumped 
Into the market by interna- 
tional investors over the last 18 
months. 

Yet two factors make the 
new venture worthy of atten- 
tion. Firstly, the backer of the 
project, Benfield Group, is one 
of London’s most successful 
reinsurance brokers in recent 
years, wife its 1993 foil year 
pre-tax profits of some £30m 
amounting to nearly 75 per 
cent of its turnover. 

Mr Matthew Harding, fee 
group's ambitious 40 year old 
chairman. Has already gener- 
ated a personal fortune 
recently estimated at £135m, 
and last year started to diver- 
sify his interests by acquiring 
a si gn ificant mi no rity stake In 
Chelsea Football Club. 

Together wife three of his 
co-directors, Mr Harding fig. 
ures among the 500 most 
wealthy people to the UK, 
according to one recent survey . 

Secondly, Royal Rank of 
Scotland, whose other invest- 
ments in fee insurance indus- 
try include Direct Line, the 
UK's most successful insur- 
ance company of recent years, 
is hacking the project Its ven- 
ture capital aim. Royal Bank 
Development Capital, is one of 
three institutions providing 
£3R5m to new equity to Ben- 
field for the new venture. 

Benfield’s achievements to 
date are in part due to the way 
it has challenged many tradi- 
tional business practices to the 
Loudon insurance market 
Mr Harding is fiercely criti- 


cal of traditional ways of brok- 
ing, for example. Many brokers 
physically carry contracts 
around the market frequently 
queueing at underwriting 
“boxes” - the open plan offices 
where Lloyd’s underwriters 
work - to obtain support for 
deals. 

“Benfield brokers do not go 
out with their binders and 
tramp through the streets on a 
wet Wednesday afternoon,” 
insists Mr Harding. The group 
conducts the vast majority of 
its broking business either by 
telephone or to pre-arranged 
meetings and is usually the 
only broker involved to a rein- 
surance deaL 

*fo the bad old days in the 
mid to late 1980s, syndicates 
would often reinsure through a 
dozen or so reinsurance bro- 
kers. We would often structure 
the whole programme our- 
selves,” explains Mr Harding. 

to addition Mr Harding 
believes brokers must take a 
long-term approach to reinsur- 
ance business, developing sta- 
ble connections wife under- 


market has been strengthened 
by fee collapse of fee “spiral", 
the chain of reinsurance and 
retroinsurance (reinsurance of 
reinsurance) through which 
dozens of underwriters and 
brokers traditionally handled 
catastrophe risks. 

Benfield's customers were 
generally less involved in “spi- 
ral” and most continued to 
trade through fee market’s dif- 
ficulties. 

And following the contrac- 
tion of the capital base sup- 
porting the London reinsur- 
ance market, Benfield was able 
to find alternative capacity 
elsewhere. 

This was at least partially 
through its links wife overseas 
companies, such as Fortress 
Re, a North Carolina-based 
agency which underwrites on 
behalf of three Japanese com- 
panies, and Frankona, a 
reinsurance subsidiary of Geii- 
tog, a leading German insur- 
ance company. 


The group quickly became a 
leading force to the catastro- 
phe market, increasing Hncmrn* 
from £9.4m in 1989 to £399m in 
1992 and £4L3m in 1993. 

Mr Harding introduced inno- 
vative elements into reinsur- 
ance deals, mainly rtarigripd to 
prevent the re-emergence of a 
kind of reinsurance “arbi- 
trage”, in winch some under- 
writers were able to under- 
write business but retain very 
littl e or no risk on their own 
accounts, and which was some- 
times an important feature of 
"spiral" business. 

At fee same time Mr Hard- 

tog and his team transformed 
Benfield's organisation, by 
introducing “state of the art " 
technology and systems. 

Because it bad brokered rela- 
tively few contracts, Benfield 
avoided the heavy burdsi of 
processing thousands of small 
claims. The c ompany's brokers 
do their own secretarial work, 
using personal computers and 
dedicated software. 

Benfield’s new reinsurance 
venture gives It the possibility 
to diversify its sources of 
income. 

For the moment its ambi- 
tions in this field remain rela- 
tively modest With rates now 
beginning to soften as competi- 
tion re-emerges, Benfield Re 
does not expect to use its 
capacity to underwrite up to 
£l25m in annual premiums to 
its first year. 

Ini tially at least the company 
will not "lead” the negotiation 
of reinsurance deals, instead 
working alongside a group of 
about a dozen senior under- 
writes. 

But the group is ambitious. 
Mr John Goldman, managing 
director, said this week feat it 
was looking for growth and 
would be able to increase its 
capital base very quickly If 
necessary. 


NEWS DIGEST 


J Latham 
maintains 
recovery 

James iAtham. fee timber 
importer and building materi- 
als merchant, maintained its 
recovery to its second six 
ynnnfha , to March 31, to end 
the year with a pre-tax profit of 
£L34m. This compared wife a 
rayim loss previously. 

Turnover dhnbed 18 per cent 
to £7L5m helped by increased 
volume and significant price 
tor***-***. particularly to dd- 
lar-related products. Current 
sales were nunring about 10 


lathdSfl 

per '•g"* up an last year. 

Mr Christopher Latham, 
rhuTTmaTij said housebuilding 
was "gafa positive, but other 
sectors of the construction 
trade continued a downward 
trend until the latter part of 
fee year. 

Earnings per share came 
through at 2L4p (439p losses) 
and the recommended final 
dividend is 2J5p for a total of 4p 
05P). 

Wmtrust 

Wintrust, the merchant bank- 
ing group, announced a 24 per 
nxpt rise m pre-tax profits from 
gg tttm to «unm during fee 12 
months to March 3L 
Mr Richard Szpiro, managing 
director, said the volume of 
new business proposals was 
running at record levels. 

A final dividend of &95p is 
proposed, making I025p (9-3p) 
for fee year, payable from 
earnings of I497p (lLl9p) per 
share. 

Cambridge Water 

Pre-tax profits of fee Cam- 
bridge Water Company expan- 
ded from 2294m to £4J4m for 
the year to March 31, from 
turnover little changed at 
yi asni, against £149 ul 
Earnings per share were 944p 
(726p) while the final dividend 
is ISp, lifting the total to l90p 
(17QP). 

Cheam 

Cheam Group, the south-west 
London and Surrey water sup- 


ply company, lifted turnover 
by 13 per cent and pretax prof- 
its by 29 per cent during fee 12 
months to March 3L 

The pre-tax line improved 
from waim to giMm, pn turn- 
over of £15.&n (£13.7m). 

Earnings per share worked 
through at 4L9p (379p) and a 
recommended final dividend of 
9.3p brings the total for the 
year to 14p (Up). 

Grainger Trust 

Grainger Trust, the property 
investment and trading com- 
pany, announced pre-tax prof- 
its of £4.76m for the six months 
to March 31, against £l.Q2m 
restated for FRS 5. 

Some £1 .9m of the pre-tax fig- 
ure consisted of a partial rever- 
sal of the £5.6&n write-down of 
the value of Kennel Farm, 
Basingstoke, made In 1992. 

Turnover amounted to 
216.4m (£15 .6m). Earnings per 
share came through at 159p 
(&4p) and the interim dividend 
is lifted from U2p to 1.35p. 

Davenport Knitwear 

Davenport Knitwear, the Bir- 


Ozl turnover up 12 per cent 

to £9.73m (2895m) p ro fi t s rose 
from si 4Bm to wiftn pre-tax. 

Earnings per share emerge d 
at 849p (56.7P) and the pro- 
posed dividend is raised from 
892Sp to 99p. 

John Swan 

Fallowing an increase at mid- 
way, John Swan & Sons, the 
livestock auction and estate 
agency concern, finished the 
year to April 30 wife pre-tax 
profits of £376,898, compared 
wife £231,346. 

Turnover, which comprises 
commission, fees and credit 
charges, moved ahead from 
£L49m to £L52m. 

Earnings per share expanded 
from 25 ip to 39.4p while fee 
dividend is increased to 18p 
(ifip). 

Dart 

Improved trading in fee distri- 
bution division and aircraft 
parts business enabled Dart 
Group to increase pre-tax prof- 
its by 41 per cent, from £L66m 
to 22.34m. during the year to 
end-March. 

Turnover for fee distribution 
and aviation services group 
improved to £52 2m (242.8m). 
The pre-tax figure was helped 


by a surplus on the sale of 
fixed assets of 030,000 (£16,000) 
and lower interest charges of 
£26,000 (£216,000). 

Earnings per share were 
IftGp (7.5p). A final dividend of 
2.4p is recommended, taking 
the total for fee year to 3.7p 
<3-3p). 

Bankers Inv Trust 

Bankers Investment Trust 
reported a net asset value of 
185>7p per share as at April 30, 
a rise of just 12 . per cent on fee 
trust’s year-end value of 183J5p. 

The increase on a year-on- 
year basis was 21 per cent 
Net revenue ter fee six 
months to end-April dipped to 
£2.79m (£3 .aim); earnings per 
share emerged at L78p (L93p). 

A second interim dividend of 
097p (0.9p) brings the total to 
date to L94p. 

Faupel Trading 

The lack of an exceptional 
charge resulted to Faupel Trad- 
ing. fee USM-quoted textiles 
importer, reporting pre-tax 
profits of £l.02mfar the year to 
March 3L. against losses of 
£59JH0 restated for FRS 3. 


activities. - Operating profits 
were little changed at £L54m 
(£1.59m) but last year there 
was an exceptional charge of 
£884,000. 

Earnings per share were 
698p (losses 4.73p). The divi- 
dend is held at 4Jp wife an 
unchanged 3.05p final pro- 
posed. 

Henderson Strata 

Net asset value per share of 
Henderson Strata Investments 
increased from 271p to 297.7p 
during the six months to April 
30; the outcome compared wife 
23l9p at end-April 1993. 


Availahle revenue far fee six 
months fall from £47,000 to 
£12,000, equivalent to 0.07p 
(029p) per share. The directors 
exported to recommend pay- 
ment of a reduced dividend for 
the year - last year's single, 
final payment was l.4p. 

Microgen 

Microgen Holdings has paid 
£L5m cash to acquire Scottish 
Computer Services from 
Clydesdale Bank. 

Assets of Glasgow-based SCS 
were about Elm at fee end of 
the year to September 90. ft 
made a pre-tax profit of £35325 
(£901,001 loss) on turnover of 
22.87m (£3J2m>. 


Barton 

Burton Group, fee clothing 
retailer and property devel- 
oper, has completed fee sale of 
Terra Firma, Redhfl], Surrey, 
to CIN Properties for £L3£m 
cash. CIN is fee property 
investment manager of British 
Coal pension tends. 

The property was let earlier 
this year for £919,000 a year, 
equating to a yield of 6JS per 
cent 


Storehouse 

Mr Keith Edehnan, chief execu- 
tive of the Storehouse retailing 
group since last August 
earned fee equivalent of an 
annualised 260U75 last year, 
according to the annnwi report 

His actual pay up to the 
April year-end was less than 
that of Ms Ann Iverson, chief 
executive of Mothercare who Is 
leaving to join Melville, fee US 
retailer. She was the highest* 
paid director with £495^86, 
including a £171,500 bonus. 

Both figures are well below 
fee 2337m - incl uding A £2,7to 
bonus - earned by Mr David 
Dworkin, the former group 
chifif . in the previous year. 


DIVIDENDS ANNOUNCE 


Current 

payment 


-Bn 


tttRBtPnra. 

Banfcarm hrvTst int 

Cambridge Water fln 

Cater Men Jn 

Cheam Rn 

Dart — Bn 

Davenport Knft 
Faupel TriKbig §„ 
Grainger Truat . 

Latham (Janes) 

PaS Newapapers fln 

Swh) (John) ^ 

Wintrust — Un 




Date of 
payment 


Aug 1 
Aug 31 
Aug 5 
-Wy 30 
Aug 22 
Aug 31 
Oct 3 
Aug 30 
July 26 
Aug 8 
Aug 1 
Aug 25 
Oct 1 


Come - 
ponding 
aMdend 

Total 

tor 

year 

Total 

last 

year 

2,906 

12 

11.625 

09 

- 

188 

115 

190 

170 

20 

28 

27 

7 

14 

11 

2 

3.7 

ZA 

8.525 

9.2 

1525 

3,05 

4.9 

4£ 

12 

. 

&25 

nB 

4 ' 

US 

6.52 

10.64 

9.46 

16 

18 

18 

&3 

1025 

91 


Dividends shown oanen n» -u — _ . . 1 - ■ ' ■ ■■■ 

increased capttaL §usm 8ts ^ ^ 

xseoond interim: makes 1.94p to data. 


mingham-based maker of knit. 
ted fabrics and garments, lifted 
pre-tax profits by 49 per cent" to 
the year to December 31. 


Turnover was £27. 8m, 
against £31. 4m including 
£2.63m from discontinued 



ac 


‘Husiti 


'*»*.'*. 


u up 
Mill* 


4 lin, tan!Sri 





FINANCIAL TIMES WEEKEND JUNE I8/JUNE ; 19 1994 


INTERNATIONAL COMPANIES AND FINANCE 


lvmh sees strong profits growth 


By Alice Rawsthom to Paris 

LVMH, the French luxury 
goods group, was on course for 
5uxra& profits growth in 1994 
after benefiting from buoyant 
sales during the opening 
months of the year, Mr Bern- 
ard Arnault, chairman, con- 
finned yesterday. 

. Tfi® group expected net prof- 
its to rise by “more than 30 per 
cent" during the first half of 
1994 from FFr935m ($164m) 
during the same period last 
year, Mr Arnault told the com- 
pany's annual meeting. It is in 
the throes of acquisitions after 
reducing its debt by unravell- 
ing a cross shareholding agree- 
ment with Guinness, the UK 
brewer. 

Mr Arnault forecast the 
group, which last year was 
affected by a downturn in the 
champagne market and by the 
impact of restructuring costs 
on the contribution from its 


Guinness stake, would achieve 
a profits increase of u at least 20 
per cent” in 1994 from 
FF&STbn in 1993. 

The improvement in the 
group's fortunes reflects a 
wider recovery across the 
international luxury goods 
Industry. 

The luxury market, which 
flourished during the 1980s, 
was one of the first casualties 
of the economic recession in 
the early 1990s. However, the 
industry has since last autumn 
benefited from increased 
demand in the US and in its 
emerging south-east Asian 
markets. 

LVMH owns some of the 
world’s most high-prestige 
products including Hennessy 
cognac and Louis Vmttan lug- 
gage. 

The group recently reported 
a 28 per cent increase in turn- 
over to FFr8. 02tm in the first 
quarter of this year, fuelled by 



Bernard Arnault: earnings rise 
could be more than 30 per cent 

healthy sales growth for 
cognac and Luggage. 

Mr Arnault yesterday con- 
firmed that the upward sales 


trend had continued during the 
second quarter, LVMH, he 
said, had registered a 22 per 
cent Increase In sales in the 
five months to the end of 
May. 

In the meantime the group is 
pressing ahead with its acqui- 
sition plans. Mr Arnault said 
he hoped to develop the 
group’s interests outside the 
drinks sphere by expanding its 
other luxury activities, such as 
fashion and beauty products. 

Since the unravelling of the 
Guinness agreement LVMH 
Hat taken control of Guerlam, 
the French fragrance house In 
which it held a minority stake. 

It is understood to be in 
negotiations over the acquisi- 
tion of Van Cleef & Arpels, the 
Paris-based jeweller. If tie deal 
goes through Van Cleef could 
become L VMS’s first foothold 
in the real jewellery market 
dominated by France’s Cartier 
and Tiffany of the US. 


Metallgesellschaft raises DM1 .2bn in sale 


By David Waller in Frankfurt 

Metallgesellschaft, the 
heavfiy-indebted German min- 
ing, metals and industrial 
group, has raised D Ml .2 bn 
($706m) from the sale of its 
near -80 per cent stake in 
Buderus, an engineering and 
building supplies subsidiary 
once regarded as a jewel in the 
Frankfurt-based conglomer- 
ate’s crown. 

The sale, handled by Deut- 
sche B ank and Dresdner BnnIf L 
was conducted through an 
international placing of 2J03m 
Buderus shares at DM600 each. 


Deutsche Bank, the biggest 
creditor to Metallgesellschaft, 
said the placing had been over- 
subscribed in spite of poor 
market conditions. Applica- 
tions for shares had to be 
scaled down. 

The proceeds, less commis- 
sion for the two big hanks, will 
initially flow to Metallgesell- 
schaft, although it is highly 
likely the money will find its 
way back to hank* which are 
owed a total of about DMBbn. 

Deutsche and Dresdner 
banks, both big shareholders 
in Metallgesellschaft, will be 
the main beneficiaries. 


The banks have security 
over Buderus’s assets dating 
back to December last year 
when they advanced an emer- 
gency loan to Metallgesell- 
schaft. 

The group came to the brink 
of bankruptcy in January after 
running up DM2J3bn losses 
in US oil derivatives 
trading. 

Metallgesellschaft said it 
would realise an extraordinary 
profit on the Buderus sale. 

It did not quantify the gai* 
but bankers dose to Metallge- 
sellschaft said it would offset 
fresh provisions arising from 


the involvement of MG Corp, 
Metallgesellschaft ’s 
New York-based trading sub- 
sidiary, with Castle Energy, a 
north American oil-refining 
company in which MG Corp 
has a large minority 
stake. 

• Deutsche Bank yesterday 
denied rumours that Mr Rolf 
Brener, a board member who is 
also ehatrman of the Ge rman 

Stock Exchange, would be 
resigning as head of the bank’s 
securities trading activities. 

In spite of the denial, shares 
in Deutsche Bank dropped 
DM10.60 to close at DM721.10. 


Ruhrkohle considers Venezuelan coal venture 


By Michael Undemarai 
In Essen 

Ruhrkohle, Germany’s largest 
coal producer, said yesterday it 
was considering taking a stake 
in a Venezuelan coal mining 
venture to increase its coal 
imports. 

The company will take 25 per 
cent in a four-way venture 
with Shell and two other com- 
panies to produce 4m tonnes 
annually. An entry price is still 
being discussed. 

However, the group said 
improved results in the power 
generating and trading divi- 


sions could not prevent a 34 
per cent decline in profits to 
DM49m ($28£m), from DM66m 
the year before. 

Turnover fell 5 per cent to 
DM23.dbn, in spite of slightly 
improved sales in the non-coal 
divisions. 

Mr Heinz Horn, chief execu- 
tive, said the Essen-based com- 
pany hoped to break even this 
year, helped by a better steel 
market where Increased 
demand had helped to reduce 
Its coke stockpiles. 

Mr Horn said the Venezuelan 
venture was designed to 
broaden the company’s supply 


i proved results in the power venture was designed to 30 per 
merattog and trading divi- broaden the company’s supply years. 

; ma \ ‘.-'V * t . v ^ ^ — ’’ ' ,*■ ,'■* ’ '■ " l 

'ii.'j.- i* r . ‘ , _ -• " . •"* 7 "■»■-• - i t ; ‘'T'l'i 1 — * 

; V - *’•*:•' 

'V. W'W 

. ; ..-r'.V--;V.:;.' r ■ Wy‘r ** 

- . ; * -r- . w . 


of cheaper, imported coal 
which is becoming increas- 
ingly attractive for Ruhr- 
kohle’s electricity generating 
clients, such as Preussenelek- 
tra, which have historically 
used German coal but are 
slowly turning to imports. 

“We regard this as an exten- 
sion of what we can offer our 
cheats, especially our smaller 
clients,” Mr Horn said. 

Germany imports 20 per cent 
of the 50m tonnes of coal 
needed by power stations, but 
this will rise to about 
30 per cent in coming 
years. 


Ruhrkohle produced 15.5m 
tonnes of coal in the first five 
months of this year. This com- 
pares with 17.9m tonnes in the 
same period of the previous 
year. 

Projected output for the 
whole of 1994 is 87.4m tonnes, 
down from 4L9m tonnes last 
year. 

Ruhrkohle will shed more erf 
its 75,000 coal min ers in com- 
ing years as it moves towards a 
projected workforce of about 
60,000 by the end of the 
decade. 

Overall, the group employs 
111450 people. 


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For four days, the Financial Times will be running a special colour feature in the 
Companies and Markets section, featuring the annual reports of leading international 
companies, together with a summary of each company’s activities and results. 

All you have to do Is decide which reports you want and then fill in the coupon provided. 

It’s Just one more way you can profit from the FT. 

Financial Times. Europe’s Business Newspaper. 


Pharmacia 
offer will 
generate 
SKr9.4bn 


By Christophv Brown-Humea 
in Stockholm 

The Swedish government said 
ye s terd ay its offer of a 47.4 per 
cent voting stake in Pharma- 
cia, one of tiie world’s top 20 
pharmaceutical groups, had 
been heavily oversubscribed 
and would raise a total of 
SKriMbu ($L2bn). 

It expected to meet its target 
Of selling a niayhwmti of jM-gm 
shares after giving underwrit- 
ers the chance to aTinwitg an 
additional 10.2m shares to 
Institutions. 

Institutions will pay SKrl20 
per share, and the Swedish 
public SKrllO per share. 

The institutional price is 
SKrl lower than Pharmacia's 
closing price on Thursday but 
SKrS lower than the average 
price during the subscription 
period. 

A total of 47.5m shares will 
be allocated to Swedish retail 
investors, and 34.7m to insti- 
tutions. Non-Swedish institu- 
tions will take 70 per cent of 
the institutional tranche, 
increasing foreign ownership 
to the group to 11.5 per cent 
from 2 per cent 

Mr Per Westerfaerg, Swedish 
industry minister, said the pri- 
vatisation had been a success 
to spite of bond and equity 
market turbulence during the 
subscription period. He added 
that the institutional offer had 
been times oversubscribed 
and tite public offer JL8 Hmpq 

The state retains 10.1 per 
cent of Pharmacia’s votes, 
making It the second largest 
shareholder after Volvo, the 1 
vehicle group, with 28 per 
cent Volvo wants to sell Ms 
stake but has agreed not to do 
so before 1996. 

Pharmacia was tile biggest 
stogie sale to a privatisation 
programme winch has raised 
SKiSSbn since it was unveiled 
by the centre-right govern- 
ment in 199L 

The government has prom- 
ised more privatisations if it 
wins the September general 
election, including Nordban- 1 
ken, Telia, the tdecoxnnmnica- < 
tlons group, and Vattenfall, 
the power group- The Social 
Democrats, who are favoured 
to win the election, have ruled 
out sales of Telia or Vattenfall. 


Unisys held back by slow 
mainframe sales in Europe 


By Louisa Kaftoe 
in San Francisco 

Unisys, the US computer 
company, has warned that 
slow European sales of its 
mainframe computers will 
result in lower-than-expected 
second-quarter earnings. 

Its share -price dropped 
sharply to $9 from $10% when 
it released its statement just 
before the market closed on 
Thursday. Yesterday, in early 
trade, the stock hovered 
around $9. 

The group, which has been 
making a strong recovery after 
several years of heavy losses, 
blamed the setback on both 
operational and economic 
weaknesses in Europe. Euro- 
pean revenues represented 25 
per cant of Unisys' total 1993 
revenues of S7.7bn. 

Sales of large computer 
Systems in Europe continued 


to decline, particularly in 
France. Germany and Italy. 
Unisys said. 

Although I'Hb company 
seen stronger demand among 
its European customers for 
desktop computers, these prod- 
ucts carry a lower profit mar- 
gin. 

“The net result of this situa- 
tion is lower sales mar gin ^ god 
profits said Mr James Unruh, 
chairman and chief executive. 
In March, Unisys appointed Mr 
Malcolm Coster, a former Coo- 
pers and Lybrand consultant, 
to head Its European 
operations. 

Mr Unruh said the new exec- 
utive was “taking steps to 
focus the business on growth 
opportunities and improve pro- 
gramme execution”. Unisys 
aims in particular to expand 
its services and systems inte- 
gration businesses. 

“While European orders in 


the second quarter may be up, 
year over year, and the rate of 
revenue decline is slowing, a 
m eaning ful business recovery 
is not yet under way. We will 
not plan on a positive turn in 
our European business until 
the fourth quarter at the earli- 
est, which is later than we 
expected at the beginning of 
the year," said Mr Unruh. 

Unisys said revenues from 
its services and systems Inte- 
gration grew strongly in the 
first quarter, in Europe and 
elsewhere, and the trend was 
expected to continue. 

However, the company noted 
that in the services business 
revenues were spread over the 
period of long-term contracts. 

Sales to the US and other 
international markets contin- 
ued to grow and were expected 
to exceed last year's second- 
quarter and first-half figures, it 
added. 


Digital revises shake-up plan 


By Louisa Kehoe 

Digital Equipment is not ready 
to unveil a broad restructuring 
this month as planned. Twahw>ri J 
the struggling computer com- 
pany will announce cost reduc- 
tions as they occur over the 
coming months. 

Mr Robert Palmer, president 
and chief executive, has told 
senior managers in a memo 
“that some work remains to be 
dime, so it is premature to dis- 
cuss OUr dft tflilad plana and 

subsequent actions. We will 
make announcements when we 
are ready to do so.” 


Last month he said that 
about 20 per cent of the compa- 
ny’s workforce, or about 20,000 
jobs, had to be cut if the com- 
pany was to become cost com- 
petitive in the computer indus- 
try. His statement followed 
Digital's third-quarter results 
with heavier-than -expected 
losses that revealed weak- 
nesses in management systems 
and a continuing decline in 
profit margins. 

Losses widened to $188m, 
from $30m in the same period 
last year. Revenues for the 
quarter declined 6 per cent to 
&26bn. 


Yesterday, Digital said that 
the scale of the downsizing 
reduction plan was unchanged. 
“This is a complex process and 
it will be conducted In an 
orderly fashion,” the company 
said. 

In his letter to senior manag- 
ers. Mr Palmer said the board 
of directors “unanimously sup- 
ports our direction and prog- 
ress”. 

However, the delay in 
announcing detailed restruct- 
uring plans appears likely to 
increase concern both within 
the company and among inves- 
tors about future cuts. 


Ferfln sues auditors for L650bn 


By Robert Graham In Rome 

Femuad Finanzdaria (Ferfin), 

the listed holding company of 

the collapsed Femizzl group, 
yesterday announced it was 
bringing a L650bn ($40 lm) 
damages suit against auditors 
Price Waterhouse. 

The claim relates to the 
alleged negligent role played 
by tiie auditors in presenting 
accounts from 1987 to 1992 that 
failed to give a true picture of 
Ferfin's accounts. 


It follows an earlier claim 
against Price Waterhouse 
lodged in April for damages of 
Ll.OOObn for the negligent 
preparation of the Montedison 
group accounts. 

Montedison is the principal 
-subsidiary of Ferfin. 

Last November, Ferfin share- 
holders voted to take legal 
action for damages against 
Price Waterhouse. 

However, the size of these 
two claims is bigger than antic- 
ipated and in the case erf Mont- 


edison it covers accounts pre- 
pared by Price Waterhouse 
from 1983 to 1992. 

Price Waterhouse has filed a 
counter-claim against Montedi- 
son taking the view that the 
previous management should 
be held responsible for “delib- 
erate and systematic fraud” 
rather than the accountants. 
The company was not avail- 
able for comment last night 
but is expected to pursue the 
same robust line over the lat- 
est claim. 


•••••■ •-* . ” V. ‘ . 

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INVESTORS 

CHRONICLE 


THE CITY INSIDE OUT 










COMMODITIES AND BOND PRICES 


WEEK IN THE MARKETS 

Bulls in the 
driving seat 
at the LME 

Bullish speculators were active 
in nearly all London’s leading 
commodity markets this week. 

At the London Metal 
Exchange highs were readied 
by aluminium 03-year), capper 

( 21 -month) and lead (20- 
mouth); the North Sea oil price 
spiked above $17 a barrel for 
the first time since last Sep- 
tember; and London Commod- 
ity Exchange robusta coffee 
futures briefly touched 7V*-year 
highs. One disappointment, 
however, was gold's relatively 
lacklustre response to deepen- 
ing concern about the situation 
on the Korean peninsular. 


(As at Ttnawtay’a doss) 


Mumtnkan 

-7500 

to 2,654220 

Akurtohun 8*0y 

-440 

to 30.620 

Copper 

-SjBOO 

toSeoABO 

Lead 

+450 

to 350.575 

NkJtal 

+84 

to 131534 

Zkn 

+75 

to 1,192.150 

Tin 

+095 

10 30,140 


Copper’s climb, which 
peaked yesterday morning 
when the three months deliv- 
ery position touched $2,454 a 
tonne, added $61.50 to the $500 
rally that began in mid-ApriL 
It continued to be fuelled by 
US investment fund buying, 
encouraged by the improving 
fundamentals for the metal. 

Aluminium’s f rmriflTrtnntMl ’n 
are also perceived to be 
improving. Although. LME 
warehouse stock remain at a 
near-record level a sustained 
drawdown is widely expected 
to begin soon as a result of the 
voluntary production cots 
agreed by leading producing 
countries at a meeting in Brus- 
sels in January. This trend is 
also likely to be helped by 
increased demand for the 
metal by car manufacturers 
and bonders. 

After being towed higher in 
copper's wake LME aluminium 
prices began to strengthen on 
their own account last week. 
And that performance was sus- 
tained as the market burst 


areas this week. At yesterday's 
close three months metal 
reached $1,470-50 a tonne, 
adding $6425 to last week’s $50 
advance. A $26 rise yesterday 
was encouraged by news of a 
strike call at Norway's Elfcem, 
which produces 20,000 tonnes a 
year at its two smelters. 

Lead's strength of late has 
been attributed chiefly to 
anticipation of increased buy- 
ing by car battery manufactur- 
ers in preparation for the 
northern hemisphere winter. A 
further boost was given on 
Thursday, however, when 
Metaleurop, a Preussag subsid- 
iary, announced that it 
planned to bait primary supply 
for two months to help reverse 
the recent heavy build-up in 
stocks. That jghnnlrt takp about 
30,000 tonnes out of the mar- 
ket The news contributed to a 
$7.25 rise yesterday that left 
the three months LME price 
$19.50 up on the week at 
$559.75 a tonne. 

The oO market had several 
bullish factors to feed off The 
Organisation of Petroleum 
Exporting Countries decided at 
its Vienna meeting this week 
to keep its production cei ling 
unchanged cancel the 
scheduled September meeting. 
That bolstered confidence in 
the cartel’s determination to 
keep output under control 
while it awaited an expected 
p ick Up in damand. Short term 
demand has been increased, 
meanwhile, by supply bottle- 
necks in the US. With the 
North Korean situation spicing 
the dish the August futures 
position at London’s Interna- 
tional Petroleum Exchange 
jumped to a peak of $17.06 a 
barrel on Thursday before edg- 
ing back. 

Coffee futures were all over 
the place this week. The LCE’s 
September position traded in a 
$290 range before closing yes- 
terday at $2,335 a tonne, up 
$187 an balance, but $155 off 
the high- The market got off to 
a flying start, buoyed by a US 
Department of Agriculture 
forecast that 1994-95 world out- 
put would be down 4 per cent 
at 90.6m bags (60kg each). The 
buying that encouraged contin- 
ued - though somewhat errati- 
cally - nntQ the price peaked 
early on Thursday. 


through successive resistance 

WEEKLY PRICE CHANGES 

Latest 

pries* 

Change 
an week 

Ysra 

ago 

Richard Mooney 

1994 " 

ffigh Low 

Gold per troy az. * 

*38830 

+4.70 

S3 7225 

S39850 

$369.50 

Sftvei per troy az ’ 

3flS. “Mp 

+aao 

293JOp 

384^0p 

335-50P 

AhenMum 99.796 fcash) * 

$1441.5 

+60-0 

$1204.75 S1441J0 

$1107^0 

Copper &ade A (ca*i) * 

$2437.5 

+65£ 

♦124825 $2437 SC 

$1731 .50 

Lead (cash) ■ 

S5O-0 

+185 

$2735 

S&XLS 

$4280 

NtokBi (cash) * 

$6445-0 

+20X1 

SS62*L0 

$6445 

$5210.0 

Zinc SHG (cash) • 

$884.5 

+180 

S3495 

$1014 


Tin (cash) * 

S5590C 

-253 

S6240.0 

S5650.0 

$47300 

Cocoa Rons Sep 

El 038 

+41 

E715 

£1038 

EE59 

Coffee Futures Sep 

$2334 

+1® 

S830 

$2334 

$1175 

Sugar (LDP Raw) 

S309A 

+16.6 

S277J0 

S309A 

$3S?0 

Barley Futras Nov 

E10O25 

+1-90 

£10725 

El 0025 

ES2J5 

Wheat Futures Sep 

El 02.15 

+2.1 S 

E13A50 

E117J0 

£9720 

Cotton Outlook A Index * 

68 -55c 

+0.10 

5825c 

87.10c 

02.45c 

Wool (B4a Super) * 

422p 

-4 

3S7p 

428p 

342p 

Ol (Brant Bland) 

S17.16X 

- 

S17A5 

$17.16 

$13.16 


BASE METALS 

LONDON METAL EXCHANGE 

(Plicae from AmNgama ed Me al Trading) 

■ AJLUMMUM, 9®. 7 PURITY ($ par tome) 


Cash 

Ctoae 1-M1-2 

Prevtoua 1A16-7 

HlgMow 1444 

AM Official 1444-S 

Kerb ctose 

Open tot- 268.746 

Tdtai daly turnover 75^43 

■ ALUMMUM ALLOY ft per tome) 

3 mths 

1470-1 

1444-5 

1483/1453 

1470*1 

U7S-BQ 

Goes 

145S-6S 

1465-75 

prevtous 

1420-30 

14304 

hSiyvtow 

- 

1470/1443 

AM Offictaf 

1460-6 

147060 

Kart) don 


1475-85 

Open Int. 

3.084 


Total daly turnover 

B LEAD (S per tOrtM) 

460 


Ctose 

542JS-3J 

SS9^60l0 

Prevtous 

536-6 

S2-3 

Hgh/low 

- 

564/353 

AM Official 

5415-20 

557-7.fi 

Kerb ctose 


582-3 

Open M. 

37.71 B 


Total riafy turnover 

4JJ41 


a MCKB. (Spar tome) 


Ctose 

0440-60 

0535-40 

Prevtous 

6380-90 

64805 

M(*Vfcw 

- 

6600/8600 

AM Official 

6490-6 

85SO-5 

Kerb ctose 


880010 

Open te 

SB^sa 


Tate] dsOy turnover 

B TM (S per tonne) 

12^82 


Ctose 

6585-95 

586065 

Previous 

5585-95 

5685-70 

Wgftflow 

- 

5®0«20 

AM OfficU 

5680-60 

5663-5 

Kerb ctose 


6886-700 

Open te 

18.583 


ToW daly tumouar 

2A08 



■ ZNC,apeclat high grate (Spar tonne) 


Ctose 

9845 

1000-10 

Previous 

975-7 

10002 

Hghnow 

988/987.5 

101871004 

AM OfficW 

987-7.5 

1013-135 

Kerb ctose 


1017-10 

Open te 

105^61 


Total daly turnover 

20533 


a COPPER, pads A (S per tome) 


Ctose 

2437-8 

2445-6 


2402-3 

2417-0 

Hlgh/tow 

2444/2442 

2462/2425 

AM Official 

2444-4J 

2452-3 

Kart doss 


2458-60 

Open te 

220332 


ToW daly turnover 

6422S 



■ LME AM Official OS rate: 1.5187 
Ut rate nta 


Spot 1 .5308 3 rthrl *289 6 ratal .5272 9 MC1.S2S2 
■ HK3H GRADE COPPER {COMSQ 



dace 

Oafs 

draigo RSgfe 

«*■ 
kra tat 

IM 

Jon 

11355 

+2® 11370 

111® 424 

61 

Jri 

113® 

+230 11270 111® 23320 

6*10 

Asg 

113.70 

+230 11270 

112® 501 

1® 

Sra 

113® 

+235 113® 

11210 12605 

1,79* 

ON 

11265 

+1® 

- 272 

- 

Nm 

Total 

112® 

+220 

- 207 

02689 

12 

9J60 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Me— srapted by N M HolhechDfl 


Precious Metals continued 

■ GOLD COMEX (tMTtayOL;S/troyot) 


Soft D*y*i 0 m 

ptea dra«a NMi law tat 1W. 

Jos 391* +22 392* 38* 957. Z73 

JN 3923 +22 

3927 +82 368* 388* 71.109 22734 

ON 3687 482 307* 3912 5*78 2B2 

Dae 38U +82 401* 394* 24*® 1*58 

Ml 4034 +62 *024 3935 6*57 

TM 14 2417 27*® 

B PLATINUM MYLEX p) Tray Ot; Jflrtiy ce.) 

Jot 

3883 

+21 

. 

. 

11715 

MB4 

ON 

411.1 

+52 

413* 

408* 

9*41 

917 

Jaa 

414* 

+5A 

414* 

anoa 

1*18 

1 

Apr 

4162 

+5A 

4182 

414* 

1,175 

5 

Total 





23*67 

2*17 

B PALLADIUM NYMS< (100 Troy OZ^ S/*oy oeJ 

Jaa 

13976 

+1® 

. 

_ 

81 

4 

s® 

14025 

+1® 140® 

139® 

37<« 

237 

DM 

14045 

+1® 

140® 

136® 

822 

5 

Ha r 

14045 

+1® 

- 

- 

1 

- 

T*tN 





4*33 

248 

H 8B.VER COMEX (100 1>oy OSJ Cents/koy at) 

Jra 

558.7 

+126 

. 

_ 

1 

2 

JN 

5593 

+183 

685* 

348* 86363 24*85 

«ag 

5622 

+133 

5822 

5500 

to 

■ 

sra 

8643 

+124 

5700 

5545 

28345 

7*10 

Oac 

5713 

+125 

577* 

562* 16723 

1*84 

Jaa 

5715 

+125 

- 

- 

32 


TM 




12B*« 33A90 

ENERGY 






a CRUSE Ofl- NYMEX (42*00 US gads. S/borrsO 


1 atari 

orata 



Opra 



prica 

rfiraga 

M* 

Lew 

tat 

UN 

JU 

Trim 

+0*9 

2005 

19*1 45738 313® 

teg 

1922 

+0.15 

1931 

18*7 92174 55*23 

Sra 

1275 

+0.12 

1282 

1845 58*29 21167 

ON 

1849 

+aio 

1250 

1825 30*71 

5*34 

Ha* 

1833 

+0.10 

1832 

1005 25*08 

4*33 

HOC 

1822 

+0® 

1824 

17® 

39*68 

7*23 

TM 




4»*RH9*03 

m CRUDE 06. IPS (S/bansQ 





LataN 

nren* 



Opn 



prica 

Nreoga 

H* 

Lew 

tat 

YN 

teg 

17*2 

+0.10 

17® 

1875 25A24 202® 

sra 

18® 

+0® 

1891 

18*7 74*14 

6.478 

ON 

18® 

+0® 

16® 

18*3 27*95 

1,487 

lira 

IflJB 

+003 

1078 

16*2 11*17 

905 

Oac 

1875 

* 

1675 

1057 

8*99 

1*23 

Jra 

16® 

-008 

1870 

IE® 

8A31 

810 

TM 




ira*n 

35,126 

a HEATMG 00. HYIEX (42*00 US grita: efts gat) 


LataN 

Dayta 



opn 



Fries 



Law 

tat 

W 

JN 

5040 

-012 

<nm 

4970 30323 12*70 

Asg 

SO® 

-013 

50® 

5010 25*24 

1S®6 

sra 

51 AS 

•010 

51® 

50® 14.448 

3279 

ON 

52.40 

-005 

5225 

5170 

9*42 

1*79 

HO* 

wiw 

• 

5339 

5270 

7*78 

1*61 

Dae 

94.10 

•0.10 

54® 

52® 1SA62 

5201 

IM 




132982 42304 

a GAS OB. PE (MM 





Satt 

Oft 



Opn 



price 

dwoga 

a* 

Lew 

IN 

TW 

JN 

15725 

-0® 

15775 

15525 32704 

$£39 

teg 

15925 

• 

158® 

15079 13*86 

1.943 

sra 

1®*0 

•025 

180® 

15025 

8*99 

1.147 

ON 

1632S 

-025 

162.75 

16125 

8*38 

571 

NOT 

10475 

. 

184® 

16329 

9.496 

407 

Oac 

187® 

-025 

18825 165*5 14.678 

858 

TM 





94®B 19*94 

a NATURAL GAS RW8 (10®0 nstaiMkl 


Gold (Tray az.) 

S price 

£ equsv. 

JN 

Ctose 

388*0-38240 


Opening 

385*0-388*0 


sra 

ON 

Momtog Ac 

385.75 

254*34 

Afternoon At 

387*5 

255288 

□ay's High 

386.40-388*0 


■BV 

On 

TM 

Day's Low 

385^0-385*0 


Prevtous ctose 

368.10-336*0 



Rto » 

£097 -0037 
2.148 -0038 
2155 -0029 
2175 -0015 
2240 -0020 
23(0 -0014 


2120 

2170 

2170 

2180 

22*3 

2346 


Ura M M 

2095 12783 1X587 
2145 17J33 8,175 
2158 12396 
2175 10046 

2240 11,(24 
2340 147*4 


33<0 

IM 

793 

1007 


12X090 2*030 


Partem uNua MharalM sated, p Pancc/kg. a Gantt b. s teg 


Loco Lrin Moan 

1 month 

2 month s 

3 months 

SBwir Rx 

Spot 
3 months 
8 months 
1 year 
Gold Coins 
Krugerrand 
Maple Leaf 
Near Sovereign 


■ UNLEADB3 QASOLBE 



4*H 

NAG (42*® US gNk; cftS gSfcJ 

.4*3 12 months 

*.11 

- —4*4 


UtaN 

Pries 

Oafs 

Ntaags 

■» 

Opn 

law tat IM 

pftroy az. US cts equiv. 

JN 

54® 

+0*3 

5420 

S3® 31*67 14,119 

38025 

547*0 

teg 

5420 

+0A8 

54.45 

SIS 22730 9*98 

364*0 

552*0 

sra 

53*9 

+038 

54® 

5115 12*28 2264 

389*6 

65695 

ON 

51® 

-007 

51® 

51® 4,770 538 

381.05 

575*5 

wot 

SO® 

•007 

50® 

50® 4.497 738 

S price 
388-391 
38925-401.73 
69-82 

2 oqUv. 
255-257 

58-01 

On 

TOtN 

BWI 

-007 

■an 

54® 2*® 148 

IM® 77*74 


GRAINS AND OIL SEEDS 

■ WHEAT LEE B per tonne) 

Safi 0 aft 

prtes c*-gt Nob Urn 

JO* 11580 +185 11SJ00 11S3D 
Sob 102.15 +UB 10215 10090 


■Mr WOOD 4080 1Q6JB 10840 

May WM +L10 10745 106.75 

7am 

■ WHEAT CBT {SJQOhu mte; cents/Bflto bushed 
- 337/S 3344)101.115 67,475 

ffl 68405 19,180 
U411M3S 45710 
re 15.130 2560 
W 330 
- 1440 55 

394496124490 

■ MAIZE CBT <5.000 6u trtn; centt/568) ttuehaQ 

+V4 28M 282/8425*05 89,185 
+2f4 28U2 273/4205.470 33,146 
+*H 7TTK 2730520305201446 
Mr 280/4 *4K 282/4 278/4 80410 6330 

Nay 283/6 +3/4 285/0 282A 94® 14® 

JN 2B4/S +3M 285(4 283/D 17406 2450 

TM 3SX4M14MH 

■ BARLEY LCE (9 par tonne) 


JN 

335/2 

. 

3371B 

sra 

34ZA 

-ore 

343/0 

Ora 

353/2 

-1/2 

357/0 

Mm 

35674 

•on 

35074 

ttv 

348/0 

- 

35M) 

JN 

TM 

330/0 

* 

" 


28372 

27910 

2758) 


sra 

93.15 

+015 

9015 

99® 

1® 

Mot 

rnft+4 

+030 

10025 

90® 

335 20 

Jra 

101® 

. 

- 

- 

a 

NM" 

103® 

. 

ra 

- 

25 

MaT 

104® 

- 

- 

• 

4 

TM 688 20 

H SOYABEANS C8T (5®Qbs take cmMSOB tubal) 


JN 

71 ire 

+0M 

719/0 

706/4 2m ,415 661725 

teg 

708/2 

40ffi 

71374 

70S* 98110 31*75 

an 

700*4 

+9/4 

7D8/0 

eras ai 2 ® 

8340 


6850 

+15/D 

6990 

887/03052351988® 


0B9re 

+1214 

704* 

882/4 29*00 

3*B5 

tar 

7C2re 

+10* 

785/0 

8064) U790 

1,1® 

Total 




786,179319*25 

B SOYABEAN OL C8T (80*00te centsfttt 

JN 

28.13 

+Q2S 

2834 

28*3 18485 

5*82 


28.12 

+028 

2822 

2805 18372 

3557 

Sra 

2806 

+025 

2825 

28® 11298 

2*25 

ON 

2729 

+029 

7+nn 

27® 8132 

512 

Ora 

27® 

♦034 

2728 

27.40 22205 

4*52 

.te 

2T52 

+037 

27® 

27® 2J91 

71 

TUN 




62A»1 

17*0 

a SOYABEAN MEAL COT (100 tons; Mon) 


JN 

2080 

+1.7 

nan 

2042 22*09 

7*33 

tag 

207* 

+22 

2087 

-XK K IS BJB 

6179 

sra 

2089 

+2* 

MI4 

2085 181® 

2A71 

ON 

2082 

+2* 

207* 

2042 8278 

838 

Ok 

2062 

+3* 

2072 

2041 21*48 

8579 

Jb 

2084 

+3* 

2072 

204.4 1*70 

74 

TM 




«*a 23*79 

a POTATOES LCE (£/tome) 



Hot 

90* 

. 

. 

. 

. 

■ftv 

105* 

w 

. 

■ 

- 

*r 

152.4 

+42 

154* 

1500 773 

101 

May 

KO* 

- 

- 

- 

■ 

jm 

107* 

• 

- 

- 

- 

TM 




773 

191 

a FRSGKT (EBFFBQ LCE ffilOfindsa poM) 


Jra 

1275 

•3 

1201 

1275 512 

St 

JN 

12X 

•14 

12® 

1220 962 

1® 

teg 

1245 

+13 

12® 

1240 1® 

53 

ON 

1338 

+39 

1338 

13® 493 

17 

te 

1340 

♦17 

1340 

1340 227 

1 

ter 

1389 

+» 

1375 

1356 84 

23 

TM 




2*98 

288 


Oras 

frra 




OR 

13)1 

QT8 





SOFTS 

■ COCOA LC£ (Ertorew) 


Opra 

tat 

M 


Satt 
prica i 

178 

21 

JN 

1015 

4® 

27 

sra 

1038 

2.1S0 

260 

DK 

10® 

1.289 

22 

Mar 

1074 

428 

10 

Hei 

1088 

395 

15 

M 

10® 

4*70 

» 

T«tal 



+1 

•1 

+1 


igh lae M « 
1018 1005 14,741 428 

1041 1028 1M*1 

1061 1046 26.187 1.1® 

1080 1068 210 IB 378 

1088 1081 10.792 2« 

1086 1096 3464 3 

111 427 3439 

■ COCOA CSCE flO tom—; SAcnnae) 

jd 1385 +12 1380 1345 1.4® USDS 

Sra 1402 +0 1417 13® 41440 8,752 

Me 1441 +8 1453 1428 11.701 W 

Mm 1471 *8 1481 1455 8487 

MM 1490 +8 1480 1468 24*1 

Jd 1612 +* 

TsW 

■ COCOA p3CCqgC«*«Aonn^ 


48 

a 

■ 2446 

2246918416 


OMy. 


Wes 

.106340 


lOtfqr 


LCeSAannM 


107545 

NA 


Jot 2348 -48 23® 2316 10404 115 

Sra 2334 -81 Z370 23® 19,747 624 

Mm 2302 -71 2340 22® 7*15 121 

i— 2283 -W 2322 2275 5737 17 

Mar 2261 -67 2258 2240 2451 2 

May 2283 -86 - 227 

T«N 46461 VtO 

B COfTBE *C* CSCE p7400ate centt/toe) 

Jd 13170 +146 13675 131.75 6468 3497 

Sap 13529 +120 13820 13275 2641710425 

Dec 13240 +1.13 13440 13140 12.713 14*3 

Mm 130.10 +143 13123 12640 74<2 30* 

MW 12925 *145 13940 12740 14® 25 

Jd 12825 +1.75 12850 12925 1® 

TM S7.1491MM 

PCO) (US centa/pogneQ 


■tana 16 

Car ted*/—. 

15 day average . 


. 127.13 
.11849 


12875 
11759 

M Mo7 PREMIUM RAW SUGAR LCE tcsntaABs) 

- 34® 

- 1,101 


Jd 

oa 


12® -047 
1270 -tun 
11 .® 

1223 +043 


® 

4413 


■ WHITE SUGAR LCE (Mama) 


teg 3S2S0 +029 35350 35150 114® 5® 
Oct +020 33240 33140 *496 850 

DSC 32450 +0.40 32550 32450 870 5 

MM* +040 323.® - 2462 10 

Kay 33140 +0® ■ 201 

A— 32040 +040 ■ 298 

Total Hmr 14M 

■ SUGAR *11' CSCE (ll&OOOfte; cantsrtbe) 


Oct 

Itar 

»r 

Jd 

oa 

TM 


1258 -0.04 12.48 1256 37.165 (528 

12,42 *m 12*8 1240 73,813 4488 

12® +0.03 12® 1202 285<7 14® 

1202 +043 12® 1201 42® 138 

1146 +4® 1242 11® 1.671 2 

11® +043 11® It® 80? 2 

130441 1149* 


■ COTTON MTCg gqWQtas; caeca/fee) 


Spioaa 

Stack popper paces continued Arm In Brape 
—da wtta a pepper's its fade el report s Man 
Produc teq The Hack ASTA grades ware 
needy « moat origins. Bta Indonesia. tads. 
H ata yee and BsriL Mess tor ths teq grades 
eg— i wot* to ooaddsrabdy. Malaysia and 
Vietnam warn oat at the mart— — toed prices 
warn very Mgh. to file US spot Mack peppar 
ismatoed at 86 cents e pound: June-July sHp- 
roert wee el 85 ccrfis. in &sape the feq grade 
tocmeeed Mw to *1700 e tame- &ede 1 
arm traded at Si.775 e tome, spot Rotterdam. 
White pepper prices Unproved Nightly in 
Etaapa. Medok tsq spat RoOento m was at 
*2®0 a tome, wtt Jbne/JNy stop ment a 
52475. oL Mwtmu tor other spicee were gan- 


JN 

7U8 

-0® 

80*0 

7020 

7.587 2*06 

ON 

77 J2 

-0.14 

78® 

77® 

5 

Ok 

7827 

-033 

77** 

7851 

7.1® 1207 

Itar 

77® 

-025 

77® 

77® 30*74 4*® 

My 

77*7 

•033 

78® 

77® 

3*22 343 

M 

7822 

-0® 

7837 

7822 

1*98 265 

TM 





52*83 MOO 

B ORANGE JIBCI NYCE {18000CM.' eanta/tott 

JN 

8920 

+030 

901® 

88® 

7*31 1*44 

$ra 

9225 

•120 

9220 

90® 

8491 1.992 

Mv 

94.73 

•035 

9475 

93® 

1*83 218 

Jra 

98® 

-0® 

08® 

9620 

3, WO 1® 

Itar 

96® 

-020 

98® 

or.® 

13® 88 


100® 

♦025 1®® 100.00 

5t 1 

TM 





IMIS 4,-m 


VOLUME DATA 

Open merest rad Volume data shoavn tor 
con tr ecte traded on COMEX. NYMEX, CBT, 
NVCE, OJE. CSCE and IPS Crude OB ere on* 
day to arraara. 


INDICES 

M REUTERS (Baas: 16/9/31-100) 


17 June it month ago year ago 

2029A 20324 18754 16684 

■ CRB » —wee (Brae: </a/5(WlOC) 


meat and livestock 

M I n If CATTLE CMg (4a0«ta*.lgte*tt 


Sad Day 1 * *■ 

M.H* “ « 

«im +0473 88-1® 54.829 343 7® 

61975 -4.173 9*723 8*6® 31,13 8®6 

-am 67423 674® 1B®7 -22® 

+0530 MM* 885* W4tt >,3B 

7Q,)75 +O2S0 702® ®8® 7446 ®> 

rt ** *4230 71.3® 70 HO UN US 

7V* 

■ UVE HOPS CM£ MOiWOOs. 

• - MM , MS 


Jhi 

N* 

oct 

Dec 

Hb 

Apr 

Tatsi 


JOn 

Jd 

Oct 

0— 

FaO 

Ts— 


4*029 +41® W50 **M> 
48®S *0050 *8.050 «*00 
run +4*75 «®0 *7 M0 
44.725 +40M W®0 **« 
44.7® -4073 44®0 4*900 
4(575 +0®0 **.<» Ml® 


i.m m 
* i» an 

M® MM 

040 sn 
un m 
m « 

^ X7®l ■— 

POHKBgLlgS CME ((Q.Q00tK CM*®-) 


Tab 


Total 


. goa n 4SD 4*«® **0® 
*3.723 -U1® (MOD *29® 
48550 +0550 4*850 -WHO 
47JXM - <75® 

5QIQVI -02® 505® 495® 
30.900 


35» tea 
*5W l.«W 
501 87 

37 ( 

M S 
U t 

u<* 


LONDON TRADED OPTIONS 

Strike prtes * terete ■— < 

M ALUMMUM 
(89.741} LME 


Aug Nov Aug Nw 



56 » 

30 

■ 47 


43 SI 

42 

69 

1500 

33 W 

86 

70 

■ COPPER 




(Grade A) LME 

Aug Nov 

teig 

Nov 


114 131 

41 

. M 

2450 - 

6$ 107 

61 

MB 



81 66 

97 

148 

a COFFEE LCE 

JN SIP 

JU 

8*p 


203 273 

• 

139 

2250 - 

153 246 

• 

162 

2300 . — 

105 221 

7 

167 

a COCOA LCE 

JN Sep 

M 

sra 

S7S 

174 te 

46 

28 

1000 .... — 

158 74 

SB 

38 

1080 — 

49 

51 

a 

a BRENT CRUDE IPE 

Aug Sra 

Aug 

•ra 

1600 - — 

102 

is 


1660 - 

84 96 

IB 

46 

1700 

44 80 

48 

68 

LONDON SPOT MARKETS 

a CRUDE OH. FO® (per barrel/Aug) 


♦0+- 

Dubai 

S1S.B6-6.0Qq 

+0215 

Brent Bind (dated) 

S17.15-7.17 

+033 

Brant Stand (Aug) 

SI 7.15-7.17 

+032 

W.TJ. (Tpm «0 

51840442Q 

+&40 

B OIL PRODUCTS NWE prompt OaRvary OF (tontai 

Pramten GsaoOns 

SI 66-187 



Gw 09 

S 156-157 


•1 

Heavy Fuel QB 

S77-60 


+0* 

Naphtha 

$162-165 


+13- 

Jet FuN 

$187-1® 


-1 

teaotaira Atpua BSms 




B OTHER 




GokMper troy o*)$ 

358640 


+1*0 

Slw (pw troy oOf 

555.50c 


•6*0 

PtaSnum (per troy ozj 

*405.75 


+0.00 

Mtadtom (par troy at) 

$138.40 


-098 

Copper (US prod) 

118 . 0 c 


-13 

UeafUS prod) 

36*8c 


+T11 

Tto(Kueto Lumpur) 

1437m 


+006 

Tin (New York) 

260.50c 


+1.W 

2ftie (US Prime W) 

UriQ. 




1 16 
23756 


f 18 

238.81 


290.® 


205-88 


Cadtoltoewaightjr 
SWep9v»wdgM}t4 

Plga Jhe weight) 

Lon. dey sugar {ra+d 
Lon. dw eugar (wto) 

Tata * Ufa cgwri 
Beriay Eng. bad 
Mata (US No3 Vdtow) 

Wheat (US Dark North) 

RubbraMuglf 
flubbam.RS8NoTJuO 

Coconut Oi p«S 

Pdm OB pJaiwJi 

OwaPNi 

Sojebsene (US} 

Cotton Qudook A. Mn 
Woo/tops (64s Supsi)- 
E per tome unlese nthandw stated, p penoeAg. c 
gsnts/to- r rtaggH/kg. m IMtoyaton cente/l^. q Aug. 
t OoUDeo z JUrdM. w Jd. T London Physical. § 
CF H oBewtom. 4 BUN® market dbae. f Soesp 
4 Jm weight prtoeM. * Change on weak, proridond 


I2530p 

-003* 

106. 77p 

’ «P 

77B7p 

•635* 

93004 

+93 

sms 

♦13 

£3)70 

+33 

CTOS® 

91453 

£1800 


78.T8P 

78.7SP 

S7830m 

+2.00 

S62&&E •. 

■■■* ei- 

SSIOOq 

«&o 

$4063 

+33 

£106.08 

-OO 

86*5« 

♦0.15 

422p 



WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rad Day's Week Month 

Coupon Dele Price charge Yield sgo ago 


Austrela 


93® 

08/04 

96.47® 

+0M10 

933 


639 

Belgium 


7.250 

04AM 

04.3000 

- 

0.11 

7.71 

7.43 

Canada* 


6*® 

00/04 

82-7000 

-04® 

9.19 

836 

&29 

Oeranarit 


7.0® 

12AM 

90.75® 

+0350 

835 

733 

7® 

France 

8TAN 

03® 

06/96 

103.1250 

-0350 

7® 

631 

806 


OAT 

5.600 

04AM 

84.67® 

-0310 

7.78 

7.18 

6.78 

Germany TreNwnd 

6.750 

05AM 

072300 

+0320 

7.14 

630 

835 

tody 


8*00 

01AM 

86*5® 

-13® 10.77T 

937 

9.13 

Japan 

No 119 

43® 

06/99 

104*170 

-0*90 

3.73 

3M4 

336 


No 164 

4_10O 

12/03 

8732® 

-1.4® 

4.41 

4.13 

3.72 

Netherlands 


5.750 

01AM 

W*0W 

-03® 

734 

632 

6.62 

Spain 


10*® 

10/03 

99.70® 

-03® 

10*3 

936 

B/40 

UK Gits 


83® 

00/99 

90-22 

-2/32 

non 

8.04 

7*9 



6.750 

11AM 

07-04 

-3/32 

6.64 

630 

7® 



S3® 

1QA» 

102-31 

+4/32 

B.63 

8.44 

736 

US Treasury 


7.260 

06AM 

100-26 

-5/32 

7.12 

7® 

734 



6J250 

08423 

66-® 

-IQ/32 

743 

729 

7*2 

ECU (French Govt) 

63® 

04/04 

6630® 

-0.1® 

8.10 

7.71 

7.18 


Lamkai doakra -New mU-ay 
t tkesa as o uq rac at 

. UK fa, 33rxtz, gem h 


1 U par oenc praaUa by nomeklanei 


Yldcls Loed rmakatatradanL 


ECONOMIC DIARY - FORWARD EVENTS 


TOD AT: National savings 
results (May). 

TOMORROW: Polish local elec- 
tions. 

MONDAY: Building societies 
monthly figures (May). Provi- 
sional estimates of M4 and 
counterparts (May). Major Brit- 
ish banking groups’ monthly 
statement (eud-May). The 
Economist holds conference 
The Second Roundtable ” in 
Havana (until June 22). Euro- 
pean Union internal market 
and agriculture councils meet 
in Luxembourg. Financial 
Times holds conference “Euro- 
pean Telecommunications • 
Responding to Change” at the 
Hotel Intercon tinental in Lon- 
don (until June 21). Wimbledon 
Lawn Tennis Championships 
(until July 3). 

TUESDAY: Balance of trade 
with countries outside the EU 
(May). Cross border acQuisi- 
tions and mergers (first Quar- 
ter). US trade figures (April); 
budget deficit (May). Sino-UK 
talks in Hong Kong (until July 
23). 

WEDNESDAY: Institutional 
investment (first quarter). 
International banking statis- 
tics (first quarter). Mr Derek 


Keys, South Africa's finance 
minister, presents national 
budget European Union indus- 
try and social affairs ministers 
meet in Luxembourg. RMT sig- 
nalmen expected to hold sec- 
ond on e-day strike over pay. 
THURSDAY: Engineering sales 
and orders at current and con- 
stant prices (April). Earnings 
and hours of agricultural and 
horticultural workers (first 
quarts'). Price of agricultural 
land in Wales (first quarter). 
US durable goods (May). 
Annual Bundesbank council 
meeting In Potsdam. KPMG 
Peat Marwick statement on 
trends in international fraud. 
TSB Group results. 

FRIDAY: CBI monthly trends 
enquiry (June). Quarterly 
national accounts (first quar- 
ter). United Kingdom balance 
of payments (first quarter). 
Capital expenditure (first quar- 
ter-revised). Stocks and work 
in progress (first quarter-re- 
vised). European Union holds 
summit in Corfu (until June 
25). Global Forum ’94 holds fol- 
low-up conference to Rio earth 
summit entitled "Cities and 
Sustainable Development” in 
Manchester. 


DO YOU WANT TO KNOW A SECRET? 

The li XS. Qbh Sarotoar wi ah®/ you how mariab REALLY wak. TTw anaztog I 

tmftig Ktatqun of On tegendsy wn Gam cantocreesa ywx proto and contain you I 
lose® HOW? Theft the sscreLFUflOei 478 0080 to book your FFEptea. 1 


One Chart Equals One Hundred Stone; 

p-'-iM tto-v: & -vn-rt r,f. iur .rcorr.-> r , .... 


cv and Fr--j; Cor.'. 
:ivc;.tori. I r o 
cell Do'.r.rj Koily 
'1 ■ ?2u 7 174 ; r# 7 T 


US I NTERES T RATES 


H LONG GB.T FUTURES OPTIONS E3CJOO 84tfWOf 100M 


Luc® me 


Man rets . 
Orator to* 
Fsdtnb. 


Mitrabs 


0Mnan»_ 
V* toivii. 

S ThfvnaHk. 
Sh matt — 

- Oasysr — 


Traasuy Els and Bond YWtB 
3® IVojav. 


A14 Dwsjew- 
451 Hwjrar_ 
Affi 1tH» 
5.14 ~ 


4 09 

Strike 

Pries 

SRI 

• CALLS 

Dec 

PUTS - 

Sep 

Dec 

818 

99 

2-51 

3-03 

2-01 

3-17 

865 

1® 

2-18 

2-38 

2-a 

3-52 

7*8 

7® 

101 

1-61 

2-13 

3-01 

4-27 

Ew-vcL ttt Cte 44a Ptas 2799. Proraua da/a opwi tat, Ctaa 32018 Pu» 30007 



US 

M US TREASURY BONPRinaga (CRT) $1000® 32ndao« 100W 

Open iBtrat Chang* Mgh Low EsL voL Opan tot. 
Jtn 104-31 106-03 +440 106-05 104-31 7,956 33378 

Sap 103-31 104-06 +0-10 104-07 103-31 477.023 341321 

Oac 103-16 103-16 +047 103-16 103-13 2,835 38362 


BOND FUTURES AID OPTIONS 


France 

B NOTIONAL 


FRENCH BOND FUTURgB (MATB^ 


Ecu 

B ecu BOND FUTURES (MATlri 


a NOTIONAL LONG TSUK JAPANESE GOVT. BOND fUTURES 
(UFFE) YIQOm IOOBwoMOOH 



Open 

Salt price 

Change 

Hgh 

LOW 

Eat vcL 

Open te 


Open 

Sett price 

Change 

Hgh 

Low 

Eat voL 

Opart Int 

Open Ctose Change rtgh 

Low Eat vN 

Open irit 

Sep 

114*0 

113.78 

-024 

114.70 

113.70 

213311 

116.726 

Sep 

62*0 

toon 

-0.10 

8230 

82.12 

1.178 

6*56 

Sep 108*5 106.90 

108.46 4457 

0 

Dec 

113® 

11236 

-024 

11330 

112*6 

9,614 

8*22 

Dae 


. 

. 

- 

. 

A 

- 

* UFFE uwaiaua nriad on APT. Al Opra tawnat «g*. aro 

tarpteouadra- 


Ur 

112*0 

11230 

+040 

112*0 

112*0 

2 














a LONG TERM FRENCH BOW) OPTIONS (MATV=) 



JN 

Sep 

Dec 

JN 

— ruis — 

Sep 

Dec 

068 

1*5 

1.87 

1.70 

2*0 


081 

138 

- 

2.46 

3*4 

. 

014 

0*2 

1.10 

- 

4*5 

_ 

0*6 

059 

. 

- 


_ 

- 

040 

0*0 

- 

522 

- 


SMa 
Prtoa 
118 
118 

117 

118 
110 

EA raL total, CaOa 27,313 Pira 60513 . IV ato a dra*a opan te, QA S1IX0S4 Puts aan^m 


Germany 



Open 

Sett price 

Change 

Ngh 

Law 

Est vN 

Open te 

sra 

91.® 

91.11 

-016 

91.73 

90*1 

139062 


Dec 

9070 

9048 

-016 

90® 

90.50 

363 

1827 

B BUND FUTURES OPTIONS (UFFE) DM2SOOOO potato of 100* 




Strike 

PllM 

JN 

Aug 

CALLS — 

8® 

Dec 

JN 

SHOO 

0*6 

1*6 

1*2 

1.78 

048 

91® 

032 

1.10 

1*5 

1*3 

071 

92® 

017 

029 

1.12 

1*1 

1*6 


PUTS 


Aug Sep Dec 

1-24 151 2J32 

I^S 1.74 2S7 

1-78 SUM 245 

EK. VOL MA Gala 13342 Puta 22012. fta rio ui apan te. Cals 2ogM tora 21M13 


a NOTIONAL MB3HJM TERM (B9IAN GOVT. BOND 
POaXUFPB’ DM2Sa000 100613 of 100% 


Opsn Satt pries Changa 
97.15 -0.15 


Hgh 


Low 


Italy 

B NOTIONAL ITALIAN GOVT. BOND (BTPJ FUTURES 
fUFPBT Lire 200m 1006 b of 10096 


EsLvol Opan tot 
0 78 


Open Satt price Change High Low Eat. vd Opan kit 
Sep 10230 101® -030 103.® 101.10 47041 83972 

Doc 10035 -090 0 1® 

a ITALIAN GOIfT. BOND FUTURES OPTIONS (UFFE) UraZOOm lOOthsoMOOM 


Strike 

Mce 

Qra 

GALLS 

Dec 

Sep 

PUTS 

Dec 

101® 

2.45 

3*2 

2*5 

8.97 

102® 

2.17 

2*1 

2*7 

4*6 

102® 

133 

2*0 

2*3 

4*5 


EB. veL BW. GMa 1816 ftto 12S7. Prarioua d^*» opto te Ce» 33+51 Pvra 19944 

Spain 

a NOTIONAL SPAtflSH BOW) FUTURES fg F) 


Sep 

Deo 


UK 


Open 

9028 


Satt price Change 
90® +030 


Hgft 

9071 


Low 

8080 


EsLvpL Opan bit 
44230 80D58 


a NOTIONAL UK GILT HUURgB (UFFE)* EBQflOO 32nda of 100H 



Open 

Sett price 

Change 

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Low 

ESL vN 

Opra te 

Jun 

101-16 

101-M 

-005 

101-22 

101-16 

1346 

103® 

sra 

100-06 

99-22 

-0-04 

100-22 

99-08 

643® 

121223 

[too 


98-25 

■004 



0 

67 


FT-ACTU ARIES FIXED INTEREST INDICES 


UK l 


1 Up to 5 

2 5-15 

3 Orar 

4 

5 Al 


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625 

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Coupon Bands: Low: 0%-7%96: Matftmr 8%-HrteX; K«gtr 1116 and 


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June 17 June IBJum 15 June 14 June 13 Yr sgo Ugh* Low* 


8-“ 934 939 284 (1/Q 

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CULT EDGED ACTIVITY INDICES 

tS June 14 June 13 junt 10 


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CURRENCIES AND MONEY 


MARKETS REPORT 

Dollar dives 


Dollar 


French franc' 


The dollar crashed through its 

SSJ22?. s “PPort level of 
DM1.6270 in late trading yester- 
day when an independent fore- 
caster said it could drop to 
DM1.50 against the D-Mark by 
late 1995, twites Motoko Rich. 

Within half an hour of the 
European markets closing the 
dollar dropped nearly two pfcn- 
bj&s, bringing the day's fall 
almost three pfennigs in very 
light trading. 

The US currency had 
attempted a rally earlier in the 
day. But concerns about Fed- 
eral Reserve Board monetary 
policy and a jittery Treasury 
market put the market in a 
bearish mood. 

The lira was hardest hit in 
Europe as the European bond 
markets were routed. The 
D-Mark benefltted from a flight 
of investors to cash. 

■ Markets had already built 
up a downward momentum 
against the dollar when the US 
currency extended its losses on 


reports that an economist at 
the Conference Board, an inde- 
pendent think tank in New 
York, saw the potential for a 
ten per cent depreciation of the 
dollar against the D-Mark by 
late 1995. 

Although the precipitous 
drop was unusual given a tapir 
of hard news, Mr Adrian Cun- 
ningham, senior currency 
economist, said the markets 
were just following a normal 
interbank trading pattern. 

■ Pound lo Km tafc 



An 17 — latex — — Pm. dose - 

tqpot 1.5300 1.5200 

1 n* 1-S283 10182 

3 mOi 1 JB79 1J180 

1* 1.0218 1.5120 

“It was a conspiracy of cir- 
cumstances combined with 
already bearish sentiment," he 
said. "Hie hearfiinf* came out 
at 430 on a Friday afternoon in 
Europe on a day in which 
there had been very little trad- 
ing so the market reacted dra- 
matically." 


8bMt*FTe«p«W 


fn the morning the US cur- 
rency had attempted to 
retrieve losses made earlier in 
the week. Short covering after 
the Swiss national bank wild 
francs on the forward markets 
gave the dollar a brief boost 
but by early afternoon It was 
slipping hflrir 

The dollar was quoted at 
DM1.QQT70 in after-hours deal- 
ings In London after niragfap at 
DM1.6299, down from 
DMLB319. It closed at Y103.495 
from Y10SL335. 

■ European bond market 


POUND SPOT FORWARD AGAINST TRE POUND 


weakness hit the bra particu- 
larly hard as Italian bonds 
plunged on fears over Italy's 
swelling budget deficit and 
concerns about the debilitating 
cost of the country's constitu- 
tional court decision on pen- 
sion payments. 

The D-Mark was the main 
beneficiary of bond market 
gloom, bidding steady against 
most European crosses. “Inves- 
tors are generally pursuing 
risk reduction and flying into 
the relative safety of the 
D-Mark," said Mr Avinash Per- 
saud, economist at JP Morgan 


DOLLAR SPOT FORW, 


in London. 

The German currency closed 
against the lira at L888J3 from 
L981.0. It was virtually 
unchanged against the Danish 
krone and the French franc. 

■ Sterling followed the dollar's 
late trading fall, losing nearly 
two pfennigs against the 
D-Mark to sell at DM2.4610/20 
compared its close in London 
of DM2.4765 and DM2.4805 on 
Thursday. It had closed at 
$1.5195 against the dollar, from 
SL520L 

In the UK money markets, 


the Bank of England provided 
liquidity of £367m after fore- 
casting a shortage of 2 350m - 
In the futures market, the 
December Euromark contract 
ended unchanged at 9481 and 
the December short sterling 
contract closed 93.75 from 
93.76. 


Jw 17 £ S 

rtegay 130730 - 150976 103.180 - 100280 
Inn 285100 - 2683JO 174000 - 179000 

tart* 04511 - 04528 02970 - 02978 

POUmd 343142 - 34380.1 25900 - 228200 

Att* 297034 - 298734 1W1I» - 198000 

IULE 55930 - 55081 06715 - 58735 


Jun 17 


Cloning Change BUMftr 
mid -point on day sprawl 


Day's MU 

high low 


Etaopa 

Austria 

BfltQhsn 

Denmark 

Rntand 

Hence 

Germany 

Greece 

Ireland 

Italy 

Luxembourg 

Motherlands 

Norway 

Portugal 

Spain 

Sweden 

Switzerland 

UK 

Ecu 


One month Three month* . One year So* of 
Rate %PA Rale %FA Rate %PA Eng. Index 


Jon 17 


Closing Chmge BUfoKar 
mid-polnt on day spread 


Day's Red 
high low 


One month Three months One year J.P Morgan 
Rote 94 PA Rale 96PA Rate %PA 


Pdi) 17.4821 40.0403 731 - 910 17.5247 17/1317 17/4783 03 17.4727 02 

KL9028 -00604 473 - 382 510140 509473 

aTOSS -00175 9S8 - 122 9.7450 06888 

8l2634 -00768 523 - 746 80650 

04489 -0.0155 440 - 537 04870 04440 

-0-004 7S2 - 777 24940 84465 

-1-212 826 - 6S6 375.871 370647 
(TO 14)188 -00016 176 - 193 10243 14)176 

W 2435.88 +204 458 - 678 2443.71 2433J63 

509928 -00604 473 - 382 51.2140 509473 

2.7787 -00007 775 - 790 2.7802 2.7784 

(NKr) 107663 -0.0245 S18 - 610 108160 107618 _ 

(EsJ 257471 -0254 167 - 775 250694 267.167 258446 -45 260391 -45 

(Pta) 205.068 -0127 969-167 206504 204569 205578 -25 208523 -08 209.708 -25 

(SKrl 11.9042 -00506 990 - 134 115961 115950 115272 -2L3 115622 -15 12-0932 -15 

(SFi) 25624 -00024 810-838 25957 2.0782 2-0813 07 25788 07 25571 15 


(DKr) 

(FM) 

(FFi) 

(DM) 24765 
(DO 374541 


F9 


17^4783 

02 

■\7A7Z7 

02 

. 

_ 

509628 

02 

512278 

-02 

502078 

a 2 

9.7132 

-in 

9.7268 

-02 

9.741 

-0-4 

&4S28 

-05 

8.4586 

-02 

8.4407 

0.1 

2.4763 

0.1 

2.4758 

0.1 

24586 

0.7 

12189 

-0l4 

12188 

-02 

12204 

-02 

2441.48 

-2.9 

2453.13 

-22 

249728 

-22 

502828 

02 

612278 

-02 

509078 

02 

2.7786 

ai 

2.7793 

-0.1 

2.7588 

0.7 

ia7507 

02 

10.7632 

-03 

10.7844 

02 


Bsopa 


TO 


SDR 

_ 

Amadcas 


Aigerttea 

Ofteso) 

Bazfl 

(Ct) 

Canada 

(TO 

Mexico (New Peso) 

USA 

(S) 

PacMc/Mkkla En t/M 

Australa 

W5 

Hong Kong 

(HK5) 

tedb 

(Rs) 

Japan 

PO 

Malaysia 

(MS) 

New Zealand 

(NZS) 

Wfflppfnro 

(Pom) 

Saudi Arabia 

(SR) 

Slngepam 

(SS) 

S Africa (Com.) 

(03 

S Africa (Rn.) 

W 

Start Korea 

(Won) 

Tartan 

TO 

Thottand 

(BO 


- 15885 -0.0013 878 - 891 

- 0937146 


15943 15878 15895 -09 15856 09 15909 -05 


1142 

Austria 

(Seri) 

112066 

-*0231 

030 - 080 

112380 114870 

11211 

-0.6 

1122 

-02 

114505 

02 

1032 

1152 

Belgium 

(Bfi) 

385600 

-a 0285 

400 - 800 

33.7200 332400 

33288 

-02 

3323 

-02 

33.075 

-03 

1052 

1152 

Denmark 

(DKr) 

62875 

-0209 

350 - 800 

84182 

62345 

8293 

-12 

64166 

-12 

648 

-1.1 

me 

808 

Attend 

FM) 

6.4384 

-02484 

327 - 441 

62043 

64327 

64426 

-02 

54554 

-12 

52199 

-12 

742 

108.1 

Franca 

FFi) 

52605 

-0206 

688 - 620 

52885 

52589 

6268 

-12 

52748 

-12 

62374 

04 

1062 

1242 

Qetmany 

n 

12290 

-0.002 

285 - 302 

1.6385 

12290 

12309 

-0.7 

12317 

-04 

12284 

02 

1062 

- 

Qreeoe 

(Or) 

248200 

-a/ 

100-500 

247400 245250 

347.66 

-82 

2482 

-32 

2502 

-12 

682 

1044 

nDMCia 

<n 

14819 

+0-0022 

808 - 828 

14928 

14819 

14905 

1.1 

14679 

1.1 

1.4812 

0l7 

_ 

76.7 

ttriy 

« 

160320 

-*22 

275 - 326 

180720 1602.75 

130726 

-32 

1818.75 

-34 

1BS2 

-11 

772 

1152 

Luxembourg 

(U=r) 

33.6600 

-022B6 

400 - BOO 

33.7200 332400 

33285 

-02 

3323 

-02 

33276 

-02 

1052 

1192 

Natftoriands 

(R) 

12286 

*0.0009 

285 - 290 

12383 

12256 

12299 

-0.7 

1231 

-02 

1226 

02 

104.7 

802 

Norway 

(NKi) 

72791 

-0.0133 

781 -801 

7.1200 

72781 

7.0841 

-02 

7.0991 

-1.1 

72066 

12 

982 

- 

Portugal 

(E4 

1 69.450 

-ai 

300 - COO 

170260 168300 

171.105 

-11.7 

173225 

-02 

1772 

-42 

92.7 

842 

Sprin 

(Pie) 

134275 

-003 

950 - 000 

135270 134250 

135265 

-32 

138.11 

-34 

138.726 

-22 

801 

742 

os-— - ta— _ 

cWOttl 

(SKi) 

72348 

-02301 

306-383 

7.8317 

72306 

7-355® 

-2A 

72841 

-22 

32171 

-22 

800 

1182 

Swttzetland 

(Sft) 

12705 

. -0.001 

700 - 710 

12800 

12867 

12706 

02 

12689 

02 

12806 

07 

1062 

802 

UK 

W 

12185 

-02006 

190 - 199 

12217 

12182 

12187 

02 

12174 

02 

1.5118 

05 

807 

- 

Ecu 


1.1793 

*02007 

790 - 795 

1.1795 

1.1727 

1.1778 

12 

1.175 

12 

1.1874 

-0.7 



15187 - 161-172 15179 15126 

(Cfl 352256 48252 118 - 332 3523.32 345250 


5.1152 


-02068 

089 - 119 

2.1139 

2.1039 

2.1129 

-1.1 

2.1187 

-12 

2.1458 

-1.7 

*0004 

099 - 205 

5.1205 

5.1099 

- 

- 

- 

. 

. 

- 

-00006 

190-199 

12217 

12182 

■ 12167 

06 

12174 

02 

12118 

02 

-02105 675-701 

2.0793 

22643 

22681 

04 

22665 

04 

22656 

02 

-02074 

407 - 481 

11.7827 11.7211 

11.7388 

08 

11.733 

04 

11.7598 

-Ol 

-00188 

434 - 831 

47.7320 472670 

- 

■ 

. 

- 

- 

. 

*0181 

171 - 340 

157210 156220 

156286 

22 

156291 

32 

162231 

32 

-00095 

400 - 438 

32523 

32366 

- 

■ 

- 

- 

- 

- 

-0.0154 

650 - 687 

22787 

22806 

22682 

03 

22586 

-04 

22763 

-04 


885 


645 


185.1 


(Peso) 41.1772 -00102 611 - 833 415087 405611 - - - 

5.6989 -00022 970-008 5.7070 55870 - - - 

25301 -05012 286-315 25331 25283 - - - 

65484 400217 436 - 492 55524 55263 - - - 

75326 -00105 153-400 75499 75087 - - - 

122754 4155 659 - 806 122062 122S59 - - - 

TO 41.1064 -00136 927-201 41.1686 415200 - - - 

(Bt) 385294 -05075 029-558 385660 36.1780 - - - 

tSDR rata tor Jun 10. Bld/aHar spreads In the Pound Spot mtia mow only tha (t*t tarn* dtdmal ptocm. Raven! nfas are not (Uefly quoted a ihs nartac 
ti< ei unpead bycuw|l te r * na»tna WKa la*Bdt|flele *BlB iglrnl Bermogr IBM - TOOJBid, OBturl MT hiiw In both Ms and 
ttw Ootsr spot ttaaa deitnd tan THE WMfRB/TERS CLOSNQ SPOT RATES. Some refem an rounded by HM F.T. 


SOR - 142596 - - 

Anmricam 

Aagenttna (Paao) 09882 400004 981 -962 09964 05961 - - - - 

Brazil (Cl) 2318.12 441.72 810 - 813 231855 231855 - - - 

Canada (C$) 15893 -05039 890-895 15900 15860 15914 -15 15865 -2.1 14198 -25 824 

Mexico (New Peno) 35665 40504 640 - 600 35730 35640 35675 -04 35893 -03 35787 -03 

USA m - • - -------- 98.7 

PasUo/Mkfcfla East/Africa 

Australia PS) 15616 -00063 611 -820 15680 15602 15610 -05 15821 -0.1 15668 -05 865 

Hong Kong (HTO 7.7297 -00018 292 - 302 7.7308 7.7292 7.7292 01 7.7317 -Ol 7.7459 -02 

India (Rs) 315888 - 650-725 315725 315650 514488 -5-1 315938 -25 ... 

Japan (Y) 103495 4016 470 - 520 103500 103250 103505 02 10257 24 100696 2.7 1485 

Malaysia (MS} 25943 -00052 838 - 948 25985 25925 25888 35 25833 1.7 26143 -08 

New Zealand (NZS) 15693 -05095 888-900 15852 15872 15911 -15 15857 >15 1.7174 -1.7 

HWppteea (Peso} 27.1000 - 000 - 000 275000 285000 - - - 

Said Arabia (SR) 3.7507 400001 505-508 3.7508 3.7505 3.7513 -02 3.7533 -03 3766 -04 

Singapore (SS) 15336 -00002 330-340 15350 1532S 15328 05 15325 03 15346 -Ol 

S Africa (ComJ (R) 35503 400156 496-510 3.6690 35345 35608 -5.1 39941 -45 27708 -55 

S Africa (Rn.) (R) 4.7600 -0005 500 -700 4.7700 4.7500 4.7037 -55 45625 -75 

South Korea (Won) 807.750 414 500-000 603000 606.700 010.75 -45 61456 -22 83275 -21 

Taiwan TO 27.0535 40.0017 526 - 545 Z70545 27.0525 274735 -05 27.1136 -03 - - 

Thailand (Bt) 25.1600 40505 600-700 25.1700 221500 255325 -25 2556 -35 2554 -27 

1SDR raw tor Jun 16 BUfoSar spreads In dw Dote Spot tafaia shew only tea tat Onea teetotal ptacaa. ft»w*d ratal are not drectfy quotod n> the marker 

tut era knpGod by curent Morast ram. UK. Mood A ECU on quond In (JS cunmcy. JP. Morgan nominal Indcas Jun 1fl» Brea wraps 1880=100 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

June 17 BFr DKr FFr 

DM 

K 

L 

n 

NKr 

Ea 

Pte 

SKr 

SFr 

£ 

CS 

* 

Y 

Ecu 

Belgium 

W 

100 

1923 

1627 

4258 

1.998 

4777 

5.450 

21.10 

6052 

4023 

2334 

4283 

1361 

4.140 

2379 

3083 

2526 

Denmark 

(OKfl 

6224 

10 

8.706 

2251 

1250 

2510 

2363 

1129 

2653 

2113 

1226 

2.145 

1230 

2.175 

1-565 

1622 

1327 

Franco 

(FFi) 

6035 

1148 

10 

2231 

1306 

2883 

3389 

12.74 

3043 

2428 

1428 

2464 

1.184 

2489 

1.788 

186-1 

1524 

Germany 

(DM) 

2059 

3220 

3.412 

1 

0.412 

9832 

1.122 

4348 

104.0 

8234 

4308 

0841 

0404 

0353 

0613 

83.49 

0520 

Ireland 

W 

5024 

9.524 

0291 

1430 

1 

2391 

2.727 

1056 

252.7 

2013 

1138 

2243 

0381 

2272 

1.481 

1543 

1264 

»rt» 

<U 

2293 

0398 

0347 

0102 

0042 

100- 

0114 

0442 

1057 

0420 

0489 

0285 

0041 

0287 

0062 

8453 

0.053 

Nethoriotk^a 

(R 

1035 

3492 

3.040 

0291 

0367 

8762 

1 

3372 

9228 

7330 

4232 

0749 

0380 

0760 

0547 

5657 

0463 

Norway 

(NKi) 

4729 

9.020 

7252 

2301 

0947 

2264 

2283 

10 

2393 

1908 

1128 

1335 

0329 

1362 

1412 

148.1 

1.197 

Portugal 

(Es) 

1820 

3.788 

3381 

0962 

0396 

848.0 

1.079 

4.170 

100 

7935 

4321 

0809 

0388 

0820 

0590 

61.05 

0500 

Spate 

(Pta) 

24.88 

4,732 

4.119 

1307 

0407 

1188 

1355 

5348 

1252 

IDO 

5302 

1215 

0488 

1.029 

0741 

7835 

0.626 

Sweden 

(SKi) 

42.85 

8.155 

7.100 

2281 

0858 

2047 

grew 

9242 

2184 

1724 

10 

1.750 

0340 

1.774 

1278 

132.1 

1282 

Switzerland 

(SFi) 

2449 

4261 

4258 

1.188 

0489 

1170 

1335 

6.188 

123.7 

9051 

0718 

1 

0480 

1214 

0.730 

7550 

0.819 

UK 

TO 

50.99 

9.705 

0449 

2476 

1-010 

2436 

2.779 

1076 

2573 

205.1 

1130 

2.082 

1 

2.111 

1319 

1672 

1288 

Canada 

(TO 

24.15 

4287 

4202 

1.173 

0483 

1154 

1318 

5297 

1222 

97.16 

5337 

0388 

0474 

1 

0720 

7447 

0610 

US 

m 

3327 

6389 

5282 

1230 

0271 

1604 

1329 

7284 

1692 

1352 

7334 

1371 

0368 

1390 

1 

1033 

0348 

Japan 

(V) 

324.4 

61.74 

53.76 

15,75 

0482 

15408 

1728 

8045 

1638 

1305 

73.70 

1324 

6381 

1343 

9383 

1000 

8.193 

Ecu 


39.59 

7235 

8280 

1.922 

0791 

1891 

2.158 

8354 

1993 

1502 

9239 

1.618 

0778 

1339 

1.179 

1220 

1 


Yen p« 1,000; Otart Kumar. Ranch Franc. NonMtrfat Kroner, ana Sundrtt Kronor per Ilk Batata Rwto. Escudo, Ua and Paata par HO. 
■ D-MARK FUTURES (1MM) DM 135,000 par DM 


OMM) Yen 125 par Yen 100 


EMS EUROPEAN CURRENCY UNIT RATES 

Jui 17 Ecu cea Raw Change 96 4 /- from 96 spread Dlv. 

rates agrrinetEcu on day can, rate v weakest Ind. 

Mand 
Nethartmda 
B elgiu m 
Germany 
Ranee 
Da nm ark 
Spate 
Portugal 


Greece 
Italy 
UK 

Eueonta naaaaatterSMEurapaBiCommieaton- Cutanctos are In teacmtagtaMlw strength. 
P wce ma ps changes are tor Ecu; a postore dungs tenons a irafc tenancy. Oira u anc a shows the 
rate bat— n era smart the p ecenatpa J rtance beteaan tee actual nw and Ecu cantod ralaa 
teracunancy, red ihe maCmuw pemtad pateatapa datadon of tea cwiency^ ntatat rata tan ta 
Ecu central 

p7faB»h Staring lMta u» aapanttod tan BB4. Mutaai a cskMatad by ta Rntndd Tlmsa. 


0308628 

0792940 

-0200288 

-134 

536 

13 

2.19672 

2.16028 

*00002 

-138 

534 

. 

402123 

39.6710 

-00037 

-136 

531 

10 

124864 

122782 

-000045 

-1.12 

527 

. 

qjaran 

837570 

-000513 

056 

331 

-5 

743679 

754951 

-020716 

152 

234 

-10 

154250 

159579 

*0277 

345 

042 

-24 

192354 

200358 

*0284 

339 

020 

-26 

4BERS 

264513 

290999 

-0.168 

1021 

-558 

_ 

1793.19 

1892.11 

*645 

552 

-154 

- 

0788749 

0778070 

-0200815 

-138 

532 

- 


13 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 


Cauth & Co 

444 Stau, tart MBA US 


l*UtaM9nM.l S ndcaRW UU 

RxatuegcaatoiaK.I xjij 


UK Ub 

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Money Market 
Bank Accounts 


BGIMnauMaelWBlaiWUM wi-e 

rtlWOOf «M*i ?23 14175 I 

mow* 1 nar 750 6 fcs 11 

(USD . RadFWlIN :«1 1 l/M ami 73 

Hde«y Honay llarfcei Accouat 

Mr fttaag* Srttan LH. tkgMBl Race. 
iaM»sm,xT 2 oere 

1 H«® |JJ 5 Ml I 350 


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HiXJL icuob.i 1 ute zmesa luoni ray 

KMnwort Banna Private Batdt 


too an 

100 

UK 

150 243 






400 300 


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426 310 

433 

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aa-u Md> ^t- uoqh K,! ta ^raasiosia 

nemo * Tamo uzi aseal m 

tZMK- OW- 1 350 1079 1 35341 0 tr 


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makcMeUMradoapCaVIIDJ 071-021 207D 

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400 

300 

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425 

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431 

450 

431 

457 

225 

1JB 

227 

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eioamo-Cimmo I sm ass I ass I nr 

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PO flat 300. SkrtratadOa. Lam OMaSTOm 

TESSA lam -I -Ittaay 

Tern am I soil mb 

am I smlo-Mu 

ami 435 84*0 
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Z29 I 3D2iB-Mn 

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244 | am 8-4UI 

iml Z2BI8-MU 

455 218 I 4m 1 9-401 

am 225 20210-Mat 

176 2m 277 Htt 

231 123 I ZSzlO-AOB 

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9.BW4 

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1750 2813 
2876 2508 
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1 smooeaemi n. luma HiH tal 
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Wted nonwons Treat Ltd 
AO Dntf. ltaa. BM ran 
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naUansieaBa,niara*PUi3E 079204141 
nsmo*- I 4.75 258 1 4JM Or 

’/ uoo-cMmo 1 430 sm| 4m atr 

amo-cum — ~l 4 m 219 1 ami a* 


now- ta iMaur a m at tOraet pa mta m 
tdttao mtam O n» drtuettn <4 baric no kwara ta 
MU tap ■* 4*M pnatu tar eta** taaatalta M 
rac tta taem ta tan Cam ORm tau atamw to 
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Open 

Latest 

Change 

«gh 

LOW 

Est vol 

Open bit 


Qpan 

Latest 

Change 

High 

bow 

EM. vol 

Open bit 

■ FMOJUa 

ELPMASI 

t/m OPTION1 E31250 {cents par pound) 

PUTS “ 



05128 

0.81 01 

-0.0023 

03133 

03092 

28416 

88.434 

Sep 

09745 

09713 

-00035 

02703 

02703 

20299 

53291 









0.810S 

-0.0021 

0.8105 

03105 

103 

1385 

Dec 

02793 

08783 

-00023 

08783 

09763 

452 

2.122 











_ 

w 

03120 

7 

660 

Mar 

- 

- 

- 

- 

- 

- 

- 

1325 

099 

8JBS 


- 

- 


















1^450 

656 

630 

074 

- 

0.08 

035 

















1rf75 

4.14 

4.40 

4.76 

003 

037 

0.79 

■ SWISS FRANC FUTURISS OMM) SFr 125200 per SFr 



■ noun FVtWttllMM) C82500 per £ 




1500 

227 

236 

328 

040 - 

151 

158 


a 7304 

0.7255 

-a0048 

a7318 

0.7246 

18368 

45375 

Sap 

15166 

15160 

-00034 

15194 

15138 

6261 

33247 

1-650 

012 

034 

H83 

098 

328 

a_B5 

438 


0.7275 

0.7267 

-0.0048 

0.7Z75 

0.7287 

145 

802 

Deo 

- 

15120 



15120 

40 


Ambus day's mi. Cato 56,488 Pun &4S . Prev. tfa/H emn tot. Crfa 410A48 Puts S57540 

Mar 


0.7287 

- 

- 

0.7287 

4 

3 

Mar 

" 

15130 

“ 

" 












WORLD INTEREST RATES 


MONEY RATES 

Am 17 Over One Three 

night north ndha 


■ TMW MOUTH EUBOmiaC WT1IM1 ['UFTTj* DM1 m pdntn of 10096 


ax 

ndha 


One 

y«ar 


Lomu 


Ox 

rate 


Repo 


BaHAon 
wort ago 
Franca 
wort ago 
GamuHiy 
week ago 


wort ego 
Roly 

wart ago 
Netherlands 
week ago 
Switzerland 
week ago 
US 


Japan 
weak ago 


SW 

54 

69V 

5V4 

550 

5.03 

54 

54 

BA 

5.03 

556 

4» 

3tV 

44 

■*4 

24 

24 


54 

54 

5» 

6V» 

553 

553 

54 

54 

T/t 

Vh 

4.99 

459 

H 

44 

4U> 

■tti 

24 

24 


54 

54 

6H 

5% 

550 

555 
54 
54 

8 

79L 

551 

556 
4tt 
416 
414 
4H 
24 
24 


54 

54 

W4 
54 
5.00 
555 
5W 
5% 
6 W 
79k 
555 
558 
A H 
496 
AM 

24 

24 


5% 

596 

696 

696 

5.15 

A13 

64 

64 

8« 

8K 

550 

523 

496 

4» 

54 

596 
ZH 
2 » 


7M 

7.40 

650 

520 

650 

650 


0l 825 
6525 


450 

450 


450 

450 


7.00 

750 

625 

525 

350 

awn 

350 

350 

1J5 

1.75 


B.75 

B.75 

555 

5.10 

625 

625 

750 

750 


3Mr 

3Mt 


44 

44 

426 

426 

34 

34 


■ $ LIBOR FT London 
teterbonfc Rxteg - 4| 

wort ago “ *4 

US Dollar CDe - 4.10 

week ooo " 4 - ,fl 

SDR Linked Da 

week ago 

mi I Kurt Da tad tame 1 mdv 6B 3 mta St 

^ tlTSa-d 

aw The barta m*. Bwtata Tfttft tart W 
km' tta* “■ ahown ta *• demaace Money mm 

EURO CURRENCY INTEREST RATES 

Jun 17 Shan ] Tlm 

inn nooog roornn 

s1 *' 5 P'l 

59. - B 5?. - 5^ 

S - 4\ 5-4% 

5 - 4|3 5 - 4U 

‘ S:?t 

3U*3fl 
S-B - 5% 

4A - 4* 

7V 71a 


4» 54 

4W, 54 — — — 

4.68 824 

4.69 521 --- 

W 4 

39* ♦ 

I n*tw S& 1 year. 04. ■ UBOB totataank tag 
at br <our ntanca banta at 11 am tatti werktap 
Burty* end Nastend W a etn tea ta , 

. US 6 COs and son unkad DapodB m. 


One 



Qpan 

Sett price 

Change 

Ffiflh 

UW 

Eat vd 

Open InL 

Sep 

9526 

9523 

-001 

8527 

95.03 

14807 

193973 

Dec 

9433 

9451 

- 

9458 

84.78 

22720 

204752 

Mar 

9456 

9452 

-021 

9450 

9450 

20875 

203321 

Jun 

94.18 

94.14 

- 

8421 

84.12 

11053 

104651 

« TMtSS MONTH 

BMOtMOlTJUn PUTUtaR (JJFFE) LI 000m poWa of 100% 


Open 

Sett price 

Change 

wgh 

LOW 

Eat. vof 

Open InL 

Sop 

91.77 

9150 

-021 

9150 

91.40 

9241 

46882 

Deo 

9146 

9120 

-016 

81.46 

91.13 

5949 

49673 

Mar 

9128 

90.77 

-019 

91.10 

9073 

1728 

12897 

Jun 

9051 

8029 

-024 

9061 

9023 

257 

8282 

■ TMt 

D MONTH 

BMO 6MBSS FRANC FUTUHMS (LFFQSFrlm pointfl of 100% 


Open 

Sea pries 

Change 

Hgh 

Low 

Eat. vol 

Open bit 


95.48 

9550 

4027 

9S53 

95-47 

3516 

30191 

Daa 

9522 

8525 

*028 

8652 

Oft?? 

2245 

9047 

Mar 

9451 

8450 

*007 

9458 

9450 

1338 

7415 

Jun 

9450 

9453 

*022 

9456 

8450 

4ZD 

B23 

■ THR 

OL MONTH KCU FUTURES (UFFE) Ecu 1m prints ol 1001* 



Open 

Satt pries 

Change. 

High 

low 

E8L vol 

Open int 

Sep 

84.15 

8449 

-003 

94.16 

9429 

1150 

12388 

Dee 

9356 

9358 

-004 

8357 

93.88 

657 

8272 

Mar 

9354 

9356 

-026 

93.CS 

3355 

192 

3443 

J*xi 

9025 

93.17 

-007 

8326 

93-10 

85 

168 


■ UFFE Mum nadad on apt 


■ TWRCEIBOItntPII9QDOU5R(»B^ Sim points Of 100% 


7,4 - ' - 

4%-« 

3% - Oh 
5ll - 5*3 
49,-41* 

6*1 - 7 - - 

2A-2fd 2A-2A 

3^ ■ 3^1 3% ' ^ 



Sep 

Doc 

Mar 


Open 

9426 

9424 

9451 


S4J95 

9425 

9452 


4051 

<052 

+053 


Hah 

8457 

8426 

8453 


LOW 

9454 

8454 

8450 


Eat vd Open fed. 
102588 442517 

186580 382,138 

92.160 282551 


SH-S\ 
Sh-B 
5% -5% 

bA -S 

5%-«, 
13*9 -12A 
8%-8A 
6A-SH 
4Ja-4% 
7% -7*2 
GA-5A 
6%-B*a 
2%-2*a 

sa-sa 


■ USTHMJWWy BUI FUTWBBUBAhg Slat perl 0096 


Jun 

Sflp 

Dec 


9554 

9520 

04.79 


9554 


84.78 


<051 

♦052 

♦051 


9554 

9139 

94.79 


9553 

9428 

94.78 


876 4581 

1587 21241 

108 7532 


Mf Opan htaaM are tor prwiUB <ter 
a KUnOMAAK OPTIOIlS (Lff^Q DM1 m points of 10016 


■ twmimww 

Open 

S«P S 44 ® 


erf lor tea US Do#* and ' 

PIBOR PUTtmeS (MATW Porta Iwattank ertered rate 


Price 

9600 


Eat vcltotM. 


Jri 

AU0 

CALLS — 
Sep 

Dee 

Jri 

Aug 

PUTS 

Sap 

Dee 

Adorn &Oorrpaty . 

% 

525 

□manLawcte — 

% 

.525 

009 

012 

ai6 

ais 

006 

009 

013 

035 

Alod Treat Baric.- 

-525 

Beater Baric LW8ed_ 

,&25 

001 

004 

tu» 

(US 

non 

026 

028 

063 

AB Baric 

,._523 

Financial 8 Oen Bar* . 

-8 

0 

ntw 

003 

0.05 

047 

049 

050 

074 

•Henry Anpjacher- 

525 

•Robert Herring & Co _ 625 


Cdto 2KB Ha 400. PiMJeaa tmfK epos K, CMM 19)282 Pus 133*85 
SWISS HMMCQPT10l««(UFF£)SFr1mpalrteqf 10096 


Doc 

Mar 

Jun 


9422 

93-90 

93.57 


M TtW— MOUTH 


Sett price Ctwnge 
94.39 -0.04 

94.11 -<M» 

8179 -0-08 

9354 -058 

gmnyAAu.aaiLffFB- Sim patetaaf 10096 


rtgh 

Low 

EaL vol 

Open n. 

Shite 


- CALLS - 



— PUTS 

94.47 

9428 

17.753 

53,548 

Price 

Sap 

Dec 

Mar 

Sep 

Dec 

9424 

94.10 

13JS44 


9660 

018 

018 

017 

018 

041 

9323 

93.78 

10480 

38^48 

BS75 

007 

008 

Oil 

032 

058 

9058 

9044 

8232 

20317 

0800 

003 

004 

007 

053 

078 


0.77 

058 

1.17 


at vol uoL Orta 0 Pta a Pawfaaa Cai 11 * opan atu CM* 213 huu W13 


Sep 

Dec 

Mar 

Jufl 


Open 

94.94 

9423 

94.00 

83.ro 


94.91 

94.19 


9358 


Change 

Hfih 

Low 

Eat vd 

Open M. 

*002 

94.96 

9404 

105 

2320 

*0.03 

9425 

9423 

30 

1836 

*O05 

9400 

9400 

G 

1061 

*006 

93.72 

93.70 

12 

305 


UK INTEREST RATES 


LONDON MONEY RATES 

Jun 17 Over- 7 days 

right noUca 


One 

month 


Three 


Six 

months 


One 


4*2 -3*2 4H-4A 411 -4B 5A-itf« BA-SA Bi-sa 

Sterihg CDs - - 4S-4B 5i-5 6fl - 6h 6-5% 

Traoauy BMa - 4g| - « 4% - 4!| 

Baric Bta 4fi-4B 4JJ-4I! - Sd 

Local aiteortty daps. 6*, - 4S - 4ft 8 - 4JJ 5*« - Sit 5h - 6h 8,'* - 5ft 

Discount Marital (tops 4*2 - S*, 4,'. - 4ft 

UK clearing hart base landing rets 5*, per cent tram February 6 1894 

Up to 1 1-3 3-6 69 8-12 

month months months months 


Cads of Tex dap. (£100500) 1*2 4 3* 3*, 3*2 

Cans ol Tr dux tnda eiDOOna It iW Oaparfa rthrirawri tar rah 4ipc. 

Am. tandar rasa of data 45735pc. ECtffi had rata sap. Export Fhcnca. Make up dur Mur »1. 
1BB4. Apraod tala tor potod Jun 96. 1004 to Jul 2& ISM. Schatnaa IBM tL47pc. FWwanca tato far 
petted Apr 30 l 1 09* to May 51 , 1004. Scheme. IV A V 1222pc Ftoanca Haute Baaa Rta 5>spc tai 
June 1. 18U 

■ TUB HOfTTH STMRUNQ PVTURHS i-'FFq ESOO.OOOpointo of 10016 



Open 

Sett price 

Change 

Hgh 

Low 

EaL vd 

Open InL 

Sep 

9428 

9437 

*002 

9440 

B4S4 

10188 

110635 

Dec 

9302 

93.78 

-0.01 

0303 

03-73 

16836 

1482B3 

Mar 

93.13 

S3. 08 

+0.01 

83.14 

8304 

5638 

61181 

Jwi 

8352 

9246 

-001 

9202 

8202 

2741 

45633 

hated an APT. AM Open Merest Bgs. 

■a tar pnwtous day. 





■ awotn-tri™ Hm osmosta la^Esaxooo point, oti oo% 


Sirica 

Price 

Sep 

- CALLS — 
Dec 

Mar 

Sep 

— PUIS 

Dee Mar 

9428 

023 

0.15 

aio 

an 

005 127 

9450 

809 

0.09 

0.08 

022 

004 1^48 

9475 

003 

0.05 

003 

a*i 

106 1.70 

bt veL total, 

Cato 7260 Putt elite Fiavtaua 

tey'a OpM W, Cate 184429 Pm 1B1310 


BASE LENDING RATES 


Boric alBaroda 5k23 Gbobaik &2S 

Bito B fa oVbceya- 525 •OrimeasMahon 525 

Baric cfl CypreS- 525 Hstib Baric AO 2irth. 525 


625 MHambras Baric 525 

Baric Of Incte 525 HertMte&GentrwBt. S25 

Bank at Scodted -526 9HIS«nuei..„ ...-.626 

BonteyaBank 525 CLHoareACo.- -‘S25 


Bril Bk of MU 
tBRMnSririey&CDUd£25 
CL Baric Nedariand... 525 

CUbsnkNA — -.525 

Oydaedate Baric -525 

The CtMJpOBllwe Bank. 525 

Coma 8. Co 626 

CnxftlrtHttk 525 

Cypus Popular Bank -525 


HonokDng&ShenghaL 625 
Jtfan Hodge Bank — 525 
•LoapridJcwtotiA Sons 525 

UoydsBanX 525 

Maghts| Baric ud 625 

UBand Baric 626 

'Menu Birring 6 

NftNMRiitar _525 

•fMaBiDChen ...... 525 


*RMbutfaQuartrtaft 
Ootpotritan Unlod la no 
longer ariicrisadea 
abanUngkmSufcn. 9 
Rqysf BfcatStxHbnd- 525 
•SiriBi A VMmn Sacs . 625 

TS8._ 525 

«JntedBkernjwal„ 625 
UnfljrTrwt Bank Pte-. 525 

Western Treat 625 

rlridw— 625 

c 526 


• Mombara of British 
Maroftont Bonking 8 
Securities Houses 



Margined Foreign Exchange 

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14 



Detsfe of business done shown below have boon taksr wtih consent 
from last Thursday^ Stock E xchan ge Official List and shotrid not bo 
reproduced without permission. 

Detata relate to those securities not Included n the FT Share Mbnratfon 
Services. 

Unless otherwise indicated prices art in pones. The prices ore those at 
which the business was done In the 24 hours igjto 5 pm on Thursday and 
settled through the Stock Exchange Tateman system, they are not to order of 
execution but In ascending order which denotes the da/s highest and lowest 





w 


British Funds, etc 


Tnuraay 13*% Stk 2000/03 - £123% 

(KM4 


Corporation and Cot*ity 
Stocks 


i Cotp 3*2* S8( I846fbr afta) - 
• (13J0B4) 

Bii i d i u ran DUrtctCouncl 11%% Had Sttc 
2012- £120 (16 Ja04 

BriatdPly at) 1 1%% Bad SW 200S - £1 13*2 
(14JSB4 

KuHtagton S ChtoaaKRoyU Borough) 1 1.15% 
Rod Stk 2006 - E11B% (14JaB4 

Leicester Cby Count* 7% Ln 81k 2018(0*0 
MCertSinP] - £21% (10JaB4 

ManchoatarfCtty at) 11-5% Red 9k 2007 - 

eiis>2 nsjasq 

SuideriixXBorough at) 11%% Rad Stk 2008 
- £117 f/4J**4 


UK Public Boards 


MetrapaBan WBMr IMrwiattan WWW 3H A 
stk ea/2003 -eaecujasq 
Put of London Authority 3% Port of London 
A SW 28/99 - £78 (I6ta*4 


Ck)rnmonwealth- Govern merit 


Soum AuatMton 3% Com Ira Stk 1818{or 
attar)- £31 (14Je94 


Fo^a^gn , Stocks, Bonds, eto 
(coupons payable in London) 


AJUMUJCj PLC 13% Bds 2015 (Br 
esoao&rtxnoq - Ei3i% (isjbM) 

Abbey National Starting PLC8%% 
SUxad Old Bds2004^rfS/an) - £94j| 
psjasg 

Abbey NattorM Starifetg Capital PLC10%% 
Subaid Old Bds 2002 (Or £ Vta) - £104* 
nojoM 

Abbey National Trsraay Sots PLC 6% Gkf 
Bds 2003 (Sr £ Vaj - £91% 

Aear knaponM 4N 8da 2001(Bdf1000tq - 
SI 08 

Aqriodtusl Mortgage Cotp nC 11*2*4 Ms 

Ida* (Br£iooo,iooao&ioaooq - noi % 

(10JeB4 

AvMn Industry Dw. Corpn. 10%% Bds 
1999(9rfn 000410000) ■ Cl 00 (14JO04 

BP America inc 9*2% Gtd Nts 1990 pr E 
Vnr)-E102% 

Buctays Bart PLC 65% Ms 2004p£VM- 
ous) - £82% (14Ja04 

Buctays Bade PLC 91875% Undated Subord 
Ms- GBB 

Bodays Bank PLC 10%% Son Sub Bds 
10S7(Br£]0004iaOOq - £104% (13JeS4 

Barclays Bmrtc PLC 12%% Sartor Subord 
Bds 1997(Br£VW) - £112% (10Je94 

Barings nfi 9%H Pup Sited Ms (BrfWarf- 
aud - ES 2 ti 4 j 6 S {rsJsefl 

Bradford & Btntfay BUIdkig SodotyCctarad 
FttgRtoNta 2003(Hsg MUBE1GOO) - £96% 
96% f13Jn04) 

BritMi Atnuny* PIC B%% Nta 


19fl7(Br£1 00041 OOOQ - £103% (14JaB4 
JC 10%J 


British Akways PLC 10%K Bds 
aaoetsrcioooaioooo) - £107% (isjesq 
BritMi Gas PLC 12%% BdS IBM 
(BrCIOOOHIOOOtn - £104 .18 (10Ja94) 
British Qas PLC 7%« Ma 1997 (Br£ War) - 
£84% 5 

British Gas PLC 7%% Bds 2000 (Br £ tfn] - 
£85% (15J094 

British Qas PLC 8%% Bds 2003 (Br £ VWJ - 
«B% (15JOB4) 

BriUsh Qss PLC 8%% Bds 2006 pr E VW) - 
£97%{18Je04) 

BriUsh Land Co PLC 8875% Bds 2023 (ȣ 

Vu)-H ®%4 

BriUsh Land Co PLC 12%% Bds 2016 

(ACiooooaiooooq - £ns% cwj*b 4 

Brttlah TBsoommuriortois PLC Zmo Cpn 
Bds 2000(p£1000&1000q - £00% 

(14Jo04 _ 

BiWshTalsoonwiunk a agraPLC7%%Bds 
2003 (Br E Via) - £B9 % (ISJtoM) 


Bumuh CsstrotC^ta^Jsraay) Ui 8^% Cm 


> 7.82 8 


Cap Bda 2006 (Rsg EUJOqj 
9 DO SO .00 

Burnetii CestnH Cap/naperaey) Ld 9%% pnv 
Ctp Bds 20D6(Br£S00065(noa) - £152% 
(MJsW) 

CBhto 4 Wkslsra M Rnmca BV 1D%% Old 
Bds 2002 (pr £100004100000) - £106% 
(lOJoBfl 

ComnsraW Urtan PUD 10%% Old Bds 2002 


(ft £ Vta) - £10623 A (14JsM 
. Tnjrt ^ 


OaUy MM &Gsnaral Trust PLC B%% Booh 
Bds2OC6(Br£1OOO45OOC0-C154 
Darawt^Q^ton dt) 6%% Ma 100B (Br £ 

Dwta Fkaaws H.V. 7%% Old Bds 2003 (Br £ 
VW)'£K% 

Dow Chsmical Co Zan Cpn Ms 3QAV 
07PTE1 000410000) - £78% 

East Mdwids BscMdty PLC 12% Bds 2010 
(Pr £10000 4 100000) -£124% tl5JaB4) 
Eastern BacMdty PLC 4%H Bds 9004prf) 
VWd-£9S%CiOM4) 

Bf B ifp rl aa Finance PLC 8%% Gtd Been 
Bds 200S {Rag ESOOd) - £86% (15Js04) 

Bt Enterprise Rnsnos PIC 8%% Cad Boh 
Bds aOOSpriSOOO&lflOOQQ - ES6% 
Eaport-fcnport Bade of Japoi S%% Qbl Bds 
2000 tar SSOOQ - Js&b 
E apcrWmport Bia* oT Japn S%% Old Bds 

aaetprseooo) - susss csJeOd 

Far Euatem TmUa Ld 4% Bda 
200«JW10000) - S110JS47 120 
HrtandfflapuMc at) 0%N Nil 1887 1 (Br£ VW) 
-£103% % (MJS84) 

Rnland(RapuUk: oQ 10%« Bda 


200S(B£100041000Q - £104 % (14Js84) 
FkdandtRepuUa at) 10%% Bda 1086 - 
£105% (140804) 


Quhnaaa HC 7%% Ma 1997 Or £ Vka) - 
EB7J) (lOJeOrt) 

Quhmaa PLC 10%% Nts 1897 (Br £1000 & 
10000) - £106 % (l5Ja»0 
HSBC Hobftiga PLC 0%% Stitoid Bds 2018 
(Breva^-GSUpKJaOO 
Halllax BuUno Sadsty 5%% Ms 1884 pr S 
VW)-S100(14J«»Q 

HaBstt BukSng SoeMy n% Sutwrd Bds 
2014Pr£1 00004100000) - £U»H {14JS94) 
HbBSk BlAhig SocMy CoSasd FB0 Rta Ms 


2003 (Br E\ftn) - ESMLO 

!10%? 


NaOond WnatiPlnaWr Bark PLC 11%M UM- 
BubMs etfloataw to MHeg - B10B 

NaBond WusB rln sl Br Bark PLC 11%% Und- 

8UUM3 eiOOOpwts Pitfir- £104% % 


ssissar 


Nadonsrida BulcSng 3adaty 1S5% Sutmd 
Ms 2008 (Br £10000) - £1 IB (10JSB4) 

NaUonwIdB BuUng Sodtty Zaio Cpn Nts 
1898 pr £ Vto) - £68% (14Js84) 

Norway Pbigdom ot) 0% Ms 1996p- 
ecusooosioooaa) - ecioajo 10*07 
(lOJaeq 

Osaka On Co Ld 8.125% Bds 2003 Pr E 
VW)-EB2i 

PCO FhKd Id 8% Cm Bds 2005 
pr£5OO0|-£SO 

PowatQan PLC 8%% Bda 2003 pr 


FWCCapfart I 

ES00045000CO -£123% (13JaB4) 

Rank OrDHrtaallon PLC 8%% Bds 2000 (Br £ 
Var)-BM% p4Ja943 
RoUs-mycs PLC 11%% Ma 1998 (Br 
£1000410000) - £10805 p4Ja94 
Rothachlds CootHuatton Fh(CJJU»% Pbrj 
8i*ord Qtd Ms prSVWoua) - £82426 
f1SJo04) 

Royal aw* of Scotland PlC 8%% Bds 
2004(&£V«*J - £82ji (ISJaflfl 
Royal Bank of Scotland PLC 1CLSK Sutxad 
Bds 2013 Pr E VW) - £1030/5 t!4J«04 
Re htatssnea HUgi PLC 8%% Subonl 
Bda2003(Br£Vki)-£as% 


£128% 30 
SoaObh Amlcahie Hhsnca PLC 8£% 
UrubSM Subord GM Bda (BrfVst) - £80% 
(14JoB4) 

Bdttikftn Boscham CapM PLC 8%% Qtd 
Nb 1988 (9r E VW) - £96% (15Ja04) 

South Waat Watar PLC 10%% Bds 2012 (Br 
£100004100000) - £1048875 (14JaB4) 
Southsm Psctrio PLC 10%% Bda 2002 pr 
CMa) - £104* % (ISJaBfl 
State Bank of New South WUaa Ld 7% Bda 
1999 pr SA War) - SA9S% 
SwadwXKingdani ol) 8%% Bds 
1W6pPGOO0)-£1O2* 

SmdandOngdom at) 11%% Bds 1996{Br 
£5000) - £10385 J3S (tOJsB% 

Twmao Hnanca paesay ) Ld 9%% Chv Cap 
Bda 2006 (Rag £1000) -£104 % 

Tato & H Ftaanoa RC 8% Qtd Bds 
1998Pt£iaa00410000a) - £95% (13JS94) 
Tosco PIC 10%% Bds 2002 {ȣVW] - 
£103% 

Tosco CWriM Ld 8% Cot Cap Bds 2005(Rsfl 

£1) - £114% % G % % 

Tosco Capital Ld 8% Cm Cap Bds 
2005pr£500C410000)-£ni % ' 

Thatnas Watar PLC 8%% CmSubORSds 
2006pr£5000S50000) - £117% (15Js94) 
a aoup PLC 11%% Gtt! Bda 1896 (» 
£1000410000) - £107% (14JS04 
31 lira na fl ond BV 7%% Gtd Bds 2003 Pr £ 
Vw) -£88% 

Tdcyo El e c tri c PoawCO tnc7%% Ms 1988 
pr£VW)-£96% 

Tokyo Bsctrib Power Co he 6125% Nts 
2DD3(Bt$ Vara) - S8IC 81% flSJaSfl 
Twsaury Co q xi w i U on of Victoria. 8%% Gtd 
Bda 2003 (Br £ Vat) - £96% (i3JaSq 
Ttaig Ho Staal En tertytas Corp 4% Bda 
200iPtS10000) - $119 (MJeSq 
U-Mhg Marina Trsnapon CorparsUarr1%% 
Bda 200f(naa h Molt $1000} - 885% 

t*4Ja04) 

LMawar PLC 7%% Nh 1896 pr £ VUti - 
SBB%(f4JsB4 

UMW^m 7%% Bda 2DQ2(BrSVar) - 

United KhMon B%% Bda 2001 (Br 
BClil 006100004100000) - EC10656 
10687 (T0JaB4) 

United Klngdani Rtg Rate Nts 1996 
(Bttl 0000450000(9 - $9664* 
VMsagpjG) Qraup PLC 9% ParpSiiiord 
Ms fttpnOBH) - £83% (14JS94 
VMah Wstar UUWss ftasnoo RC 7%% Old 
Bds 2O14prOfih]0VF) - £8% 

Wochrich BlAteg Sodrty 11%% SUwrd 
Ms 2001 - £107.9 8 % C14Ja04) 
Chattanhwn & GkxKoatar BuHng Soc£200m 


H*N August 1996 - £9986 99 l 96 flOJsO*) 
‘ ~ |6%% NIS 


Export Douatapmant Corp $300m I 

enonoos - 0*864 94%^ 

GMAC AntnBa (Romos) Ld SA50m 709% 
Ms 16/11/88 - SA84% 85 
Loads Panmnant BuMng Sodsty ElOOit 
«g Rto Ms Jute 1937pr£1 00000) - £960 
(I4JS94 

Ststo Bank of Naw South WUes Ld 9% Bds 
2002 Pr SA VW) - $A87% $898% 
PwsdaghgdBPi at) BBOOtn T%% Nts 3/12/ 

BwadanMnddom d) £290m 7% Insmjmsnls 
23n2AW-£94%t14Js94 
SwadanOOngdoni ol) ESGDm 7%% Bda 28/7/ 
2000-£94(l5Js84) 


Sterling Issues by Overseas 
Borrowers 


Altai DtaWopmant Bank 10%% Lit Stk 
2006pag) - £110% (13J894) 

Bank at Qreece 10%H Ln Stk 2010pag) - 
£95(144094) 

OocK FOndar Do Franca 
10%9M^dSHLnStk2011.12.1614psg) - 
£112% (14Js84) 

Da wnai fcCKl m ttan <4 13% Ln 86 8005- 
£126 

Eurapesn hvaasnant Bark 9% Ln SUc 2001 
(Rafl) -£ 100 % % 

Burepean in w oaUnant Bank 9% Ln Stk 2001 
flt£600(J) - £101% ftOJeM 

Eurapsan Imeatmant Bmk 9%% Ln SBc 
2009 - £10601 (lOMM) 

Eisopoan bnmAnent Bartt 11% Ln SUc 
2002(Red-£110%4 

QBsrtar (Oowrarant ol) 11%% Ln SUc 2005 
pad) -£115% 

Hydro-Quebec 12J3% Ln Stk 2015 - ei29 
(13Je94) 

MandpepiXdc ol) 14%% Ln Slk 2010 - 
£140% (13J«B4) 

MemaUaral Bar* lor Rac 4 Daw 110K In 
86 2003 -£115% (t5JaB4) 

1 10%% Ln Stk 2009(Rep - £107% 


Hanson PLC 10%% Bda 1967 Pr£Mo) - 
£104% 

Hcftson Capsal Ld 7% Cmr Cap Bds 2004 
JRag).129%(14JS0<) 
knperial Chemical tnduetriaa PLC 10% Bds 
2003<&tn 000410000) - £103% (13Ja04) 
Imperial CtMidcal feafuaotas PLC 11%% Bda 
ieS5Pr£S00q - £102 3 (T4Je94) 
MamAmariean D eM atopmenE Bank 11%U 
Bds 1985pr £5000} - £104% 

MamaOonal Bart tar Rac 4 Dw 0%% Bds 
2007 (WC500Q - £102 % 

htomafionfll Bart tor Rac ft Dev 10%% Nb 
1000 pram - £10638 
MamWfand Bart for Ree 4 Dw 10%% Nts 
1994ffh£100041000Q) - £1006 (lOJaM) 
tnwraBonal Bs* lor Rsc 4 Dsv 11% Ms 
1994<BriB00d) - £102^3 % (10Je94) 

Japan Dawatopmant Bank 7% Old Bda 2000 
PT £ VO) - £32% 

Jrtls Oswdop Pubfc Co Ld 405M Cnv Bds 
20D3(BagOsnani$1000)-$81 81% 

Kami BaeMo Power Co ho 7%% Nts 1996 
Pr £ Vta) - £86 (15Jafl4) 

Kyuahu Bactrtc Power Co ho 8% Ms 1907 
prCVB0-BM% 

Land Sacurtttos PLC 9%% Bds 
2O07(Br£1 000410000) - £98 (l&MM) 
land Sacufltaa PUS 9%% Cnv Bda 2004 
0&ESOOQ45OOOO) - £111 (14<Ja04) 
lawh Pemaram BdHhg Soctaty 11%% NB 
1006 pr £50004100000) - CIOS* 

Lawh (John) BjC 10%% Bda 1998 (Br 
£100004100000} - £104% 

Uoyda Bart PLC 7%% SUbOtd BdS 
Z004prfVtariow) - £87% % (10J894) 

Uoyda Bank RjC 9%% Subort Bds 2009ffir£ 
Vart) . £96% (l*M4) 

Uoydi Bark PLC 9%% SuCNM Bds 2023 (Br 
£ Van - £9865 (13JB04) 

Maries 4 Spanoar Rnance PLC 7%% Qtd Ms 
19M pr E VB) - £96% H4J894) 

Noland Grid Co PLC 7%% Bds 1998 (Br £ 
Var).£96% 


Now Zeatand 11%% SUc 2006(Red - £115% 

NM ZBabnd 11%% SOt 2D14(Rao) - £122% 

Nora scouapmkica at) ii%% Ln Stk 2D19 
-£110% (13JS04) 

' “ » 09 fl% Ln 8ik 20iapBsl) - 


AMdanHogdem el) 9%% Ln Stk 20146M 
-£104% (13Je04) 


Listed Compani 8 S(exdudlng 
Investment Trusts) 


AAH PLC 62M Cum Ptf£1 -60(1 5JNN) 


ASCI Id 5%% Clan PH R2 - 45 ftCJaM) 
9%%Cnv 


ASHCapkat Rnanoa(iere>iy)Ld 
Cap Bda 2006 (Rag Unks IQOp) - £86 


(16h0q 

rdeon TVuat PLC Wta to ath tor Ord - 


Aberdeen 

55% (13Ja04) 

Aberdeen Tnnt PLC A Wts to Sub hr Qrd - 
53{14Ja04) 

AfcUlt Rttwr Group PLC ADR (l(K1) - $7% 

(156*4 

Alarandw- & Atacand* BmtaM Ino She cl 
CtaaaCC<imS6J1 - Eli 
Ataundw* HHgs PLC *A a PsLV)Onl IQp- 
20 

Aksmn Qmup Pic 625p 9M} Onv Cum Rad 
PW10p-49(lSJs84» 

MUtKym PLC &%% Cum Prf £1 - 57 
ABod-Ljrora PLC 7%% cun ffl £1 - 78 
i PLC 5%H Una Ln Stk - £89 


0 


AUKHyons PIG 7%H Una In Stti 83/S6 - 
£93% 

AMed4yons FhancW Sandora Plflfl%% 
OidOnyStiMdBdtaoOB RsgMuUEIOOO - 
£11164 2 

Abut London PnpaMaa PLC 10%H 1st 
Mtg Dab SK 04/90 -C100 (15M4 

AMs PLC 65% CW Cum NaihVtt FM PIT 
£1-703% 

Amerioat Braids he 8ha of Can Stk S3.12S 
•$32% 3 


FT-SE ACTUARIES INDICES 


The FT-SE 100, FT-SE Md 250 and FT-SE Actuaries 350 indtea s and the 
FT-SE Actuates industry Baskets are catcutatad by The Intemsiiomti 
Stock Exchange of the United Kingdom and Republc of Intend United. 
Q The kttsmatlanaJ Stock Exchange of the United Kingdom aid RepLMc 
of Ireland Limited 1994. AD rights reserved. 

The FT-SE Actuaries A&-Share Index is cafculatsd by The Financial 
Times Limited in conjunctkin with the InstRutB of Actuaries aid the 
FBctfty of Actuarial 0 The Financial Tlmea Limited 1994, AO rights 
reserved. 

The FT-SE 100, FT-SE Md 250 and FT-® Actuaries 350 i nd ice s, die 
FT-SE Actuaries industry Baskets and die FT-SE Actuaries AU-Sh&re 
Index are members of the FT-SE Actuaries Share tnefleas rates which 
are cakutatad in accordance with a standard set of ground rules 
estabfishad by The Fteandei Times Limited and London Stock Exchange 
in conj unction with the Institute of Actuaries and the Facufty of Actuaries. 

"FT-SE* and “Footsie* are jtfnt trade marks and service marica of die 
London Stock Exchange and The Fhancfed Times Limited. 


Anmtedi Corn Sto of Com SK $1 - $41 

(16M84 

I Fund LEl $240 - $2868 


Moon HokSnoa PU5 Owl 5p - 120 (HUtfM) 
i 42% Clin 1st ftf Blfc £l - 


hdm-Unkod LnStk 
■ £133%(16M4 
ltabona PLC Warcama to 



PLC 12%% Urn 


For those securities In which no business was recanted in Thursday's 
Official List the latest recorded business te the four previous days is given 
w&h the relevsit data. 

Rite 535(2) stocks era not regulated by the In ternational Stock Exchange 
of the United Kingdom and the ReptiAc of Intend Ltd. 

* Bargains at seeds! prices. 9 Bargains done the previous day. 


Amour ThM PLC 1Q%% Urn in Stk siiW- 
10 5/18% 1st Mtg 


1% (15Ja&4 
KtanjC6%%Ur»Ln 
! SOp - 37 $ 

iPLC7%% UraLn 



PLC *55* Cum 2nd 


Prt £1 - 80 (ISAM) 

! 10%% LJha Ln 8tk 8SS8 - £104 


£100004100000} - £97% fl5Jo94 

6 Ld Ht% Qav.Cap Bds 2008 (Br 


Barclays Bart PLC 12% Una Cap Ln Stk 
2010 - £116% 

Botfaya Bart PLC 16% lira Cap Ln Stk 
2002/07 - £133% 

Bardon Group PLC 365% Cm> PTf £1 - 42 
(15JS04 

Bwdon Group PLC116S> Cun Rad Prt 
2003 lOp - 109 

Borings RjC 8% Cum 2nd Prf£1 -96% 7% 

8 

Bwtags PLC 9%M Non-Cum Rf £1 - 116 % 
(1SJ804 

Bamsto BipforsUon Ld Ord ROOT - 32 
C13JS04 

Barr 4 Wtfsn Amokf Truri PLC Old 2Sp - 
540 t15J094) 

Bass R jCADR ( 2rf) - S16673 % 

Bsao PLC 10%% Dab Stk 2016 - £112 
n a, uni) 

Bos* PLC 4%% Urn Ln 80C 92/07 - E6B% 
(14JO04 

Bass hvsamwnas PLC 7%% Uns Ln Stk 82/ 
07-£B7(14JsO4) 

BaSwcy PLC 96% Cum Rsd Prf 2014 £1 - 
112 (14JS04 

Baromon d-y AS "B* Non Mg 8to NKL5 - 
MOM .15 

amkitf iam MMatSnw BUdtag Soc B%% 
Rem W Baartng Shs £1000 • £8085 7 % 

Btackwood Hodoa PLC 9% Cum Rad Prf Cl 
-301 

Btackbustar ErriortafewM* dap Sbs Com 
stk 8610 - 827686143 (1OJS04 

Btua Chefs Muatrtaa PLC ADR (Id) - SA46 
(15JB94) 

Boddbigtan Group PLC 4% ON) Stk Facp - 
£43 

Bradford 4 Hngloy Btddng Socfaty11%% 
Pam Int Bearing Bho £10000 - £118 

Bradford 6 Bhglay DuhDng SocMyl3% 
Perm Irtt Bearing SM £10000 - £123^ % 
65% 4% 

Brodlard Prapony Thiat PLC 10%% Clan PH 
£1 - 120 (13MH) 

Bkant WUgar Ooup PLC tWa to Sub kr Onf 
-1 (1OJS04 

Bront WUhar Oxxip PLC Var Rio 2nd Cnv 
Rad Pit 2000/2007 £1-7% (I4J0B4 

Brant Watar Om* PLC 65% »d Non-Cum 
Cm Rsd 2007/10 £1 -2% (15Ja94) 

BrMoi Water PLC S%% Cum kid Prf £1 - 
112% (16M4 

Bridal WMarHdga PLC Ord£1 -980 
(14Ja84 

Bristol WdarMdga PLC6L75% Cun Cnv 
Red Prf 1898 Sha £1 - 188 f14Js84 


tetatol 6 Wsat Btddng Sodaty 13%N I 


Int Bearing She £1000 - £122% * 

Britannia BufcBng Society 13% Perm Int 

Baartng S&a £1000 - £121 % 

BrtUah Akwaya PLC ADR (IQfl) - 

S816382rt4> 

BrUrn-Amarican Tobacco Co Ld 5% Cnm Prf 
Stk £1-53* 

BrtOah-Amarican Tobaooo Co Ld 6% 2nd 
Cum Prf Stk £1 -64 

British Patrolaum Co PLC 8% Cwn 1atftf£1 


Brttttfi Stasf PLC ADR (tOrf) -52673 J483 

% 


BritMi SuiptfAjC 10%K FM Dab SUt 2013 


- £115% % ftOJe04) 

Brown(John) PIC 5%% Sac Ui Stk 2003 - 
£70 (13Js94 

BUW4PJ 4 Co PLC Old Sha 5p - 53 
BrtTwrfHPJHdfli PIC 8%% 2nd Oum Prf 
£1-105% 

Bwiri PLC 7% Chv UmLn 90c 85/87- £106 
Bumrt Cratnl PLC 7%% Cum Rad W £1 - 
71% (15Ja04 

BumMi Cadnrt PLC 8% Cun Prf £1 -80 
(14Jo04 

Bumdana knaatmants PIC 18% Una Ln Stk 
2007/12- £120(10)004 
ftatai Qraup PLC 8% Cm Uria Ln SOc 1998/ 
2001 - EDO 


Butts MWrig PLC 10% (fW) Cm Clan Rad 
M89410P-4 


Prf 1904 100 - 4 (14Ja04) 

CCBC Ld Eqrty RulO - 205 (!4Je94 
Cdgay 4 Bknortai IMw ey Co 4% Cana 
Dob StkfGM by CLPJJd)20Q2 - E43 

C1OJS04 

CMtaian Oun Pack tactiatr Ld Com Npv - 

600 30ft3Jo94 

Owiria Group PLC 468% (Nat) Bad Cnv Prf 
1996 £1-65 73 (14JO04 
Canton CammuNeattona PIC ADR C&1) - 
$26% (14JS04 

Carton Conamategtana PLC 7%% Cnv 
Subaid Bds 2007psg £5000} - £130% 0% 
(15Ja94 

Cakapfiw Inc Sha of Com SBc $1 - $109 
Chartwood Atenc* Hkfes Ld 7%% Una Ln 
Ok 50p - 38 (15Je&Q 
ChaBanham 4 Gkiuoaatar Brtd Soc 11%% 
Paon bit Bewkig Sha £50000 - £113% 

OxponttMi RC warrants to aub 

CWngron CtapotaOon PLC 0%% Com Rad 
Prf £1-01 

Oty SHa Eatataa PLC 625% Cnv Cun Rad 
Prf £1 -67(154804 

GayMha PLC 96% SrOmdCnvUns LnStk 
2000*01 - £90 % 5 (T3Jo94 
OoawjriOeaporallon 8hs 0! Oom Stk $633 V 
3-028% 

Coala Parana PLC 4%% Una Ln 88c 2002/07 
-£B3(1*Js04) 

Cotta mans RC 0%M Una Ln Stk SOtO/tJ? 
-£82(16M4 


ta VMa PLC 46% Cum M £1 -08 

5MM) 


OohanM 4 Co RJ3 Non.V ‘A* Old 20p - 
40S(13Ja04 

ComwrdN Urtn PLC 8%% Cum bid Pit 
£1 - 104% 5 

ComnareM IMon PLC B%% Cum bid Prf 
£1 - 108% % 8 

Co-Oparadra Bank PLC 065% NonCum bid 
Prf El -110 

Cortaukla PLC 5% Cun RkI 2nd M £1 - 

Oouuufda PLC 6%% Una Ln Stk 04A6 - 
£99 (1 SJeB'ij 

CouttMdi PLC 7%% Uni Ui Stk 2000AB - 

£88 (14JS04) 

®*may Bdrtig 3ocMy 12%% Penn War- 

aM Baartng Sha £1000* £112% 3% 

DAKS Snipsai Group PLC 5% Cum rtf£l - 
59 (13J804) 

Drty Mafi S Ganww That PLC OR) GOp - 

£11.1 15 

□teJrty PLC 465% Cum Prf £1 - 74 
Dabamma PLC 8%% 2nd Dab 5ft 00695 - 
£96 (1OJ804 

Dabmhene PLC 7%% Una Ln 8R 2002/07 - 
£S3(14Ja84 

Dabartnma PLC 7%% Una Ln Stk 8002/07 - 
£88(l*la94 

Datta PIC *2% Cum 1st Prf Cl -82 


Data PLC 3.16% Cum 2nd Prf El -48 
(13Je04 

Date PLC 10%K Dob Hk 05/99 - £102% 

3% (I5JS04 

Danoaa PLC 625% Cum Cm Rad Prf El - 

111 

DaarhuratPlCOd iop- 70{10Ja94 
Dominion Brngy PLC CM fip - 11 
B30raroPLC5%CummS6£1 -48 
(161094 

B Oro MbJngSEajjkaitfkai ConCOrd lOp- 
585(13Je04 

BdridgaPopa 6 Go RC 7%% tod Uns Ln 

Stk - £81 (14 Jo 94 

Bacmtn Houh PLC 76K Qnv Cum Rad Prf 

£1 -110(1 OJ094 

Bnwa PLC 625p(NaQ Cm Cun Rad Prf Sp 
-8759 


Bpag)81C10 - SK382 2 6 3 6 4 4 JZT % % 
60 5 5 .15 .10 % % % jB 8 8% 4068 
EatskM Property irwaatmant Co Ld 10% 1st 
Mtg Dab Stk 20n -£91 (UJe04 
Euro Dlanpy SjCA. 3h* FRIO (Poportary 
RacatpH)-3SS74003 
Euro Dfcaioy SjGa. Sha FRIO J3r) - FR33% 
46 66 66 

&artavM PLC/BwgWmW SAlHta 
0msm traobate - £6122 66160 
FR26S1 55 62 761 JK At AS % 69 
JOG 3.18 .17 6B 

Bmtunnal PLC/Euetunw SA Fndr 


£10% $28% 

Euroaumai PLCTBaotunml BAFn* wta 
(StoMam bHEribad) - $32% (161eM 
Ex-landa MB Wananta to aUi for Bhs - 23 
J15J804 _ 

EtekmBon Oo PLC Ord Stk sp - $20 
(16JS04 


Avdal PLC ‘ 

CIOJaBfl 

BA.T biduatriao PLC ADR (2rt) - $12% 

KT PLC ADR f*rt)- $76027 
BM Group PLC46p (NaO Cm Cunt Rad Rf 
20p - 48 

BOC Group PLC 65% Cum 2nd Prf £1 -55 
BTP PLC 76p0M) Cm Cum Rad Prf 10p - 
200 

1 HUga Ld 8%H Una Ln Stk 2002/07 


Hist CHcago Cop Com Brie 85 -582% 

Rrat Nsttond BoWng Social 11%% Pram 
tat BaaWig Sha E1OOOO - M0 % (15Ja04 
Hnt National Rmnoa Corp PlC 7% Cm 
Cum Rad Prf £1-140 
FHora PLC ADR (*T) - *8%4 
Raora PLC 5%% Ura Ln Sdc 2004/M - £70 
(lrtJafli) 

Fotkta Group PLC Ord 5p- 46 (1*la&4 
Friwidhr Hotaia PLC 7% Cm Clan Rad Prf £1 

- 88 (13J*04) . . 

GN Great Norte Ld Sha DK100 - 655%^ 
GJRJHklm} PLC 10%% 2nd Cun Prt El - 
gok i%Ciak*4 

G.T. CMa Growth Fund Ld Old SOOI - £29% 
38 

Gonanl Aortfant RjC 7%% Cun tad rtf Cl 
-87%%% 

Gananf Acrtfard PLC 8%% CUn tad Prf £1 
- 106% % % 

Ganem Acc RmGLWa Aaao Qap PtC7%% 
Um Ln Stk 92/07 - C9B% (161004 
Qomdi BtaSrie CP PLC ADR flrf) - $46 

Gna?Dandy PLC Ctd lOp - S3 4 
Gtynwad tn ta nM orM PLC 10%% Urt Ln Stk 
04/99 - £99 (l5Je04 
Goodnfci PLC OnMOp - 34 (I*lo04 
Cbata: Rorifand Eattasa PLC 86% 1st Mtg 
Dob Stk 2016 -£101% 425 

1 PLC 5%% Rad Una 



PLC 6% Cun M El -106 


- D amplon Property Oroup Ld 7%% Una Ln 
StkBI/961 - £90 Hf lirtMl 

GHWo(MndfGovan^4 Co of) UMfai NCP 
StkSnACI 4£9Uquldrtbn-£11% 
(15JM4 

Bart of batandfBOTCRHr 4 Oo at) Urrita NCP 
Stk 9nA b£10H9 UqufdaOan - K!1% 
(lOJa&4 

Banner Homes Group PLC Old lOp - 130 2* 
! PLC ADR (4.-1) - £22.1* S 336* 


ta PLC 11 %% Dab Stk 2014 - 
<^Grata PLC 9%% tad Una Ln 90( - 


1 PLC 7% Qtvfirind Bds 
i % .7 % 65 7 


Gubnaa* PLC AOT ffcij - $35% 

OubaMaa FWd GUM Stratagy Fd PM Rad 
Prf SOJn(GUbal Bond Fund) - 8364 
(14J094 

Gukvww FMtt Gktaat Strategy Fd Ptg Rad 
Prf S0Jn(ApanSmaMrCoaR9- $3163 . 
(i3Ja64) 

HSBC Hdga PLC Old SH10 (Hong Kong 
Rad ■ 8H45% 8*3 A A A 6 65 61 
.216688 % 624387 7157 J2 6691 6 
HSBC Hdga PLC 1169% Suboid Bds 2002 
(RagJ - £108 5 % 

HSBC Hdga PLC 1160% Sutrord Bda 2002 
(Br£Uta)-E108%Cr3J«4 
HaHax Buatang Sodaty 6%% Pam Mt Baar- 
tag Sha £50000 -£86% 

Hanot Bunding So daty 1 2% Ran tm Baar- 
bn ShaEl (Reg £50000)- £117 D*N04 

MUn Hotdnga PUS Ord 5p - B3 4 6 
Krt &^»«lnB(WdBa)PLC 655% Cum Prf 
£ 1 - 66 « 

Kdnw PLC 11% Cum Prf Cl - 133 [>5Ja04 
Han u neraon PLC Ord 25p - 342 2 3 463 5 7 
050 

Hwdya 4 Hansons PIC Old Sp -252 5 
Hardya 4 Hnaora PLC bid 4% 1st Mtg Dab 
Stk- £44 

HroMPtiBd) PLC Sl 2S% (Firty 7%%) CUn 
Prf £1 -73(15604 

HantrfPMp) PLC 66% (Fray 8%) re* Can 
Prf 1-40600 £1-73 (1SJ1B4) 

Hasbro Inc Sha of Com Stk STUB) - $316965 
(1 1 fa?*) 

Mdong Batata PLC OTO 10p - 60 2 (!OJo04) 
HB Somuai Stsdog Find M Rl Ptg Rad Af 
ip- 125.1 (l3Ja04 
Mtadown Hdga PLC ADRf*i) - 106 
Hdmaa Protacdon aoup bio Sw of Cora Stt 
5025 - 16 (14J404 

Hoaatng Ftaanoa Corporation Ld 11%% Dab 
Stk2016-£110U(14MM) 

IS Hmdxyan Fund NV Qnf FL061 -$15% 
18% 1717 

loabmd Group nc Cnv Cun Rod Prf20p- 
115%%6(15JO04 

tndoatriaf Control Santcaa Grp PLCOrd tOp- 
14851 

Ml 8ttxk Bechanga of UKIRap ofbLd 7%% 
Mta Dab Stk 0005 - £100 (16M04 
feMr Uk PLC Orf fcfXL 10 - 104 169 
Jaidbia Mathaaon Hklga id Old S62S (Hong 
Kong RagMarf - SH656543 AT % 

Jwdna Soatatac Hdga Ld 0>d $065 IHong 
Koog Ragtatar) - SH20-47568 612385 
67484.762474 

Johnson Group Oaa n ata PLC TJp (Nap Cm 
Cun Rad Prf lOp - $40 fl3Ja04 
JahnaonAMSiay PLC 5% Cnv Cum Prf Cl - 
870 

terras Ei en pn Fu nd LdShaQOR to B>) 50.10 
[Cpn 7) -S3750 

Kraamar AS. Fisa A Sta MC1260 - 
1501348 768 % (1SJs04 
Ladtarta Group PIC AOR (ID) - $260 
(15Ja04 

Land SacuMoa PLC 9% lat Mig Dab SOi 08/ 
2001- £102% 

LmdSaoufllas PLC 5%% Una UtSOc 02/97 
-£B3(13JaM 

LASMO PLC 10%% Dab 80(2009- £103 
Labowa PMMan tenaa Ui Ord R601 - 
FZL47$ 

Laada 6 Hdbaek BuOdtag SodMy 13%* 
Pamr tat B aartng Sha ClQOP- £121% 3% 
Laada Panranant BuMng Sodaty «%% 
Parra Int Baaring £50000 - £130 
UwtatMagP arttaih lp PLC 7%% Cun Prt 
Stk£1-7B(14Ja94 
Ua Sanrtca PLC 6%% Cun Pit £1 - 65 
(1OJa04 

London SacuOlaa PLC Od ip - 3% 4% 
Lonriro PLC ADR (1^) - *165 68 265 
(i5Ja04) 

Lookara PLC 8% Cm CUn Rad Prf El - 136 
9 

Low 4 Bonar PLC 5%% 3rd Cun Prt Stk £1 
-82 (15JaB4 

Low(Wn0 A Co PLC 675% Cun Cm Rad Rf 
£1-84 (1*Ja94) 

LowapDbart HJ A Oo PLC 8JS% (Nat) Cmr 
Ctan Rad ftf lOp -60 3 
MSV PLC 8% Ura LnStk 2000/05- £83% 


MS>C PLC 10%% Urn Ui 88( 2032 - 
i % it 6375 (14Js94) 


£10*075 

McCarthy 4 9tona RC 675% Cum Rad Prf 
2003 Cl -88% 76(1*1084} 

McCaativ 4 Stone PIC 7% Cm Una Ln Stk 
99/D4 - £72 (15JoB4) 

Mdnamay Preparttaa PLC -A* Od bGOi.iO - 
9 (ifiJaOta 

Marita 4. Spanoar PLC ADR QBeI) * $362 
MMay PLC 6%% Cum Prf £1 -9a(1*MM) 
Madam PLC ADR {4rl) - £5.7899^ 

MarehuK Ratal Grata PLC 8%% Cnv Uns 
Ln Stk 9BAJ* - £88 (15Jo94) 

Mercury OOahora Staritag Tout Sha of 
IWpiaDpran Fundi - 1636 (tSJaS4) 
Muaay Dodu 4 Hwbow Co 6%% Rad Dab 
Stk 96/99 - £91 (ISJaM 
MU-Southam Watar PLC 5% PUp Dab Stk - 
£54 (14J094J 

MUhnd Bart PLC 14% Subart Ura Ln SOt 
2002/07 - £122% (T4JS94] 

mm Caporaatan Cam Shi af W - $3696 
Mogul Stanley Japanese VWran Fd Sha of 
Ctaaa A Cam Stk {BO - »9 4 (13Ja04) 

NFC PLC 7%% Cnv Bda 2007i(9tara - £97 % 
NMC Grata PLC 7 JSp 0lal) Cum Rad Cnv 
Prf lOp- 12B(1*«MJ 
NdBorM Madeal EnTannhae Ino Sha o( Com 
Stk SODS -SIC’s {l&MM) 

Nationd Puaar PLC ADR (I(k1) - $70 
(15Ja94) 

Nadnnat iw aartuta r Bark PLC 12%% 
Subord Una Ln Stk 2004 - ma (IJJeSta 
Now Carnal W ttwtawwJU Arora Ld R0J» . 
£7% (15Ja04) 

NuKaaSa Brtrtta Soctaty 12%% pmn 
bttroat Baarfeig Shs £1000 - £114% % g 
^ (Rdy 7%) lat 

Um rn ti - 60 

North Houring Aasodadon Ld Zuo Cpn Ln 
Stk 2027 - 320 nSJsB4) 

North tt EncFand Bubdng Sodaty 12%% 
Pum W Beutag fEITO) - £118% 

°S« 1 gS?raSf?S5i StSS™ 0 * 

p i™WnS 2 ? , “”‘ u “ l "“ K 

PSfT PLC B% CunPH £1 ■ 08 (14JaM 

PBC £V? ,I V °° *■ * Co,n ■» « 

- $24% -7 (15J404) 

PSmwwni iConmuNeaBona he Cun Stk $1 

- $45% (14Ja04) 

Parkknd Group BJC Ord 25p - 196 
Pataraen Zachorta PLC 10% Cum Prf Cl - 
117(161994) 

Pud Hdga PIC 10% Cun Prf B%» - 61 
(HU*q 
Peer - ' 

jOSJrffl’ 

Pw^5CbMMStaunltevCo5%C« n 

rW8» - CSOf 

P^FoteaWfMM) Cum cm Rad M 
PNrMreSACMShaNPVfBrinDanam 16 

4 1(8 - BF1CM31 50 5 66 8B 
PNtedsnjC9%KCumprf£i -903 
nOJ«04) 

Pta«ort Croup PLC 675% Cm Prf M/ 
2001 lOp -82 

P^W«W«Jr p LC3%% Parp DM Oh . 

HsrttaN Fund Ld Ptg Rad Prf 1001 - $&% 

ClOJoOrt) 


Pb^atosust FUbiuma Ld Oni R6025 - 425 


iLtaa LnStk 2004/09 -£38 


PovuQan PLC ADR (10n) - £46227 

fllitaHI) 

Pramkr Haatai Qroita PLC CM Ip - 1% 

°!SSf!S!^« lu ! w ^ «5™C«nR8dShe 
of PM Stk 80.10 - 183% 4 (ISJaM 
Qufcta Group PLC 10% Cun Prf £1 - 11s 
(ISJaM 
RPHLd4%%l 
ft*)aB4) 

rph Ld 0% um m stk oaaoo* - E84 

(14JS04 

RTCCcaporadwi PlC 3625% W Cum Prf 
£1-4052 

Ratal Badmrtai PLC ADR (2rf) . $7% 
(161094) 

Rank OrBmttadon PLC ADR (2r!) . £76887 
f10Je94) 

Ranald PIC 7%% 2nd Dab Sflc 82/87 - £M 
Ratal Corporation PLC *55% (Firiy 6%K) 


_ i Ura LnStk 9988- 

_i(16JM4) 

SGEcorp Sha of Com flk of MV - $13% 
(lOJaM 

SamcM 6 SartM Co «JC AOR pa> - $8% 
BaotoH 6 SrataU Co PLC B% Cm Una La 
55(2015- £75% ptUrtfl 
Schol PLC 5%% Chv Com Rad nt 2008/1 1 
£1-85(14Je94 

Soodhfa HwMBaOric PLC Ord 50p - 342 % 
3 % 4 4 % 5 6 % 6 

SooBtah MabopoBan Property RJC 10%% 
lat M« Dab Stk 2018 - £101% 

Seotdeh 6 NewaaBa PLC *8% Cun Prf Cl 
-70(161*94 

Seontah A Nawcaada PLC 7% Or* Cbm Prf 

£1 -232D3J«B4 , 

SootOdi Power PLC Od 50p - 361 % % 2 2 
%%33.16%%44%5 
Soars PLC 7%K Ura Ln Stk 02*7 - £07% 
(161*04 

SH«n Brar Croeslog PLC 5% UeUM 
Dab 8tk 2012 0344%)- £115% 

ShuigtM Fold (Cayon0 Ld Pipg She $601 
-$10li (i flirt*) 

Shea TUraportxnadtogCO PLC (M Sha pb) 
25p(CpnW2»-7OS(tOJ*04 
SHaU Groop PLC Did 3p - 15 % 

SHrtf Qata PLC 684% 04*0 CmOm Rad 
Prf £1 - 26 

ShopdM Ftauioe (Uq PLC 7675pCNU} Oaa 
Rad W Sha 2000 - 72* 

Sfcftaw Group PLC 7%% Ura La Stk 200306 
-£73D3Ja84 

stgnot Group PLC ADR (31) - $132 (01*94 
Sknon Engineertag PLC 7.75% Cun Rid Pit 
02/07 £1 -02 

Sbnora 6 Co Ld 7%% Cun M £1 - 7D 
(i3Ja04 

600 Group PLC 11% Ura Ui Sdc 8007 - 
£100 (15Ja94 

Stdpkn Srtdna Sodaty 12%K Pvtro M 
Butg Shs £1000 - £1 17% 
smth New Chut PLC T2% Subord ura In 
Stk 2001- £106% (KUaOfl 
Skrth (WJ4} Grata PLC *B* OTO lOp - 112 
(i3Ja94 

Smflh (IVJL) Group PLC 5%% Rad Itaa Ln 
Srk - ESO (l3Ja04 

SmbMffira Baadran PLC AOR pnj - 
$317389 

SmBhKtaa Beacham PLaSaAKtosADR 
(5.-1) -$28674% 

Soum SubudaHra wuar PLC 8%% Rod 
Dab Stt 98/2000- £98 (I4M4) 

Stag Furtura Mdga PLC 11% CUn Prf £1 - 
104(161*04 

Sttfldud Cturtuad PLC 12%% Sutwrd Ura 
In Stk 2002/07- £113% 

arakw tadortfra PLC lot P>$5%N CUI4E1 
-55(1*1104 

Suc0a£paatomn PLC 9%K Add Cun Prf 
£1-99100(1*1104 
Syinooda Engtaautag PLC Od 5p - 36 
TAN PLC 11 %% Mg Dab Sdt 85/2000 - 
£100% 

738 Oota PLC 10%% Suborti La Stk 2008 
-£106% % 

T5B OOahora krvFUxlLdPSg RadFW 
ipfftao Anuricaa ChraO - 48601 
TS8 OtbhM Inv Food Id Pig Bad Rrf IpfUK 
Eqdty OauO - 31Z2 (13JM4 
TM* 4 Ly*a PlC ADR PLI}- $256530*1*04 
Tata 4 Lyta PLC 5%%fL55% pku tax aad- 
IQCunPrf£l-7O(l3Ja04 
Thrtual tatuntearai Fuid Ld Pig s« ML01 
DOR'S to Bd - $27% 

THORN EMI PLC AOR (W>- $1645 (1*M4 
Towhu PU? Ord lOp - 286 (!3Ja04 
Town Cana* SacuMra PLC 8% Cnv Ua La 
90(08/2000 - £320 

TnriUsra House PLC 10%% Ura In SU 
200MB - £90 (ISJaSq 
Trauattatac Hdcfcga PIC A Cm Prf SOp - 
£3% 

TmuMtaBdc HOrtngi PIC B 6% Cm Pit Cl 
-957 

Trarawa Oavatapnurt Gram PLC 8%% 
Ura in 9*03/05 - £86% (10JaS4 
Udga* PLC ADR 0:D- 3687 (13M4 
Udgau PLC 5%% Ura Ln SG 6V98 - £97% 
(1SJ«04 

Uotan tMamadoodCoPLC6%CunPyrSu 
£1 -47% (15Ja04 

Urtro uwoMoiM Co PLC 7% Cun Prf sat 
£1-53 

Unlays Corp Com Sot SOOI -SlQ%(i5Ja84 
LMtad PtaruMora Africa Ld Orf ROSO - 
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VbkM 4 taorau Tnut PLC Wtarara 80/94 10 
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Vao Oamarfa Land Co 'A* 25p • 57$ 

Vtau Qota PLC 0678M Dab Stk 2015 - 
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Udura PLC 5% CumOtat Frae To SOpiPrf 

StfcEl -88(1*M4 , , 

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VUax aoup PlC 46% pmly 7H) Cum Prf 

WEWOtata Scr5a* cum Red Prf 88/ 
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Wagon bakuMMHMBS PLC 725p (Rati Cnv 
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Wbtrajnranra) PLC CM 5p-30% (14AM4 
Mdmg t&O) Grata PLC 7%$) Oan Prf El 

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WaowCatmiadga WCB%% Ura LoaOr 
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WUnro u gh affl bdga) PLC B%% Cun Rad PH 
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Welcome PLC ADR prf) - $8% ' 

WNRaaad PLC 4%% 2nd Cun Prf SUc £1 - 
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WhOxaad PLC 6N 3nf Cum Prf » Cl - 55 
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Wbttarad PIC 7%% Uria Ln 38c 96/90 - CS1 
MMbraad PIC 1(Pi% Ura Ln Stk 2000/05 - 

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WMuciaft PLC 61% Cum Prf £1 - 59 
Wtanay RC 8J8% Cnv Cun Rad 2nd Prt 
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Wtea Curoon Group HC AOR Pil) - 
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Wyavala Gudra Caraos PLC 65% 04al) Cm 
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YodaMu-tym Tara TV Hdga PLC Wta to 
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TR (kurt ar Companlra bar ThM PLC 4%H 
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Stuphart Naama Ld *A" (M Cl -C64 
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Sutton Hubovr Hdga Ld Orf 20b - S6« 

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TbStfu PLC CM 5p - noo (14M>4 
Tbw Rum Ld Oni lOp • S655 (HM4 
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Investment Trusts 


Abferat Now Dawn bar Trust PLC C Sha SOp 
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Bates GBBMl Japan Tout PLC Wta to tefc 

CM Sha -218 (15J*04 
BMW Gnord Shin Mppon PLC wamnu ta 
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Bertram IraaaBnant Ttaut PLC 36% Cun PH 
sat-fsn (KJJ*04 

Btfcab Aaaata TnM PLC EquHaa bidek ULS 
2005 lOp - 152 

Bridrfi Eu*A* Sac 4 General Treat 10%N 
Dab SOt 201 1 • £107 
BritMi brnustnuntTnut PLC 11.125% 
Second Dab 8dt 2012 - Cl 16% % 

(i0Jo94 

CACknuaBnart Treat PLC Old 2Sp - 97 
(14J094 

Carttaf Grarfng Thut PLC Ord 2Sp - eSOf 
Cfcmura tana Emerging Growth FutaSha 
$10 (Rag LuN - $1264 16054 
Drayton EngMh 4 tat ThM PLC 365% 0tary 
5%%) Cun Rf Cl - 57 (15Ja»4 
EtSrfctagh hwa— nt Tnut PLC 11%% Dab 
SW 2014 - £120% (14JS04 
En^di 4 SootSte banders PLC *B* 2Sp - 
112 

Rdrtfy Euopean Vllute PLC Equity LMad 
Uha Ln SW 2001 - 151 (14Ja04 
ftubuy Gna8ar Ce% Tluri PLC Zaro Otv Prt 
ZSp-151 

nertno CMrahoos* bar Thut PLC 11% Dab 
Stk 2006 ■ £113% (lOJNM) 
rt iiidii) riwr a nU a Irrr TliwT n f* 36 % Cun 
Prf 3at Cl - 53 (10Ja94 
Rwrtng tiaro an fa bw Treat PUC4%% P*rp 
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Ftmkta 5 Col bwrat Treat PLC 36% Gmty 
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Gufcraa Bridah tac 4 Gdi T« PUCZaro 0M- 
drad Rrf lOp - 104 % flBJ*94 
Ouaam Shawl Equity Treat PLC Q aua tl 
CM Inc lOp - KW 7% 

Gavut SfcMfte ■mlhut PLC 10%% Dab 
Stk 2016 -£110% nOJM4 
HTR Japunia SnMfcr Co's TTOat PLOOni 
25p- 111 2 %3 

Uaurf Stag b waat m art Tnut Ld Pig Rad 
Prf 610 Oobal Acdva Fuid • £156 1366 
(10M94 


8U» Grooo PLC CM 50p - 135 5 tIOJsBG 

raOHotrtnga PLCOrt WD60 -K16 

(I4J*94 

Gtaba Mm PLC CM 25p - 410 (13Ja04 
Great Soutbam Grata PLC 678p Qan Cm 
Rod Prt 5p- 236 % 

Mdtand 4 ScoHMi Reaoura* PLC Out Kte - 
2% 3% % 

Urttad Eoargy PLC WN to aub fcr CM - 8 


UMud AucHona (9ootba>0 Ld CM £1 -C3 
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HAabug Aaaat 


Rude 535(2) 


Adnura & Co PLC *B* Ord £t • C20 (UJM4 
Ana Street Brawny OoLd CM Cl -Oh 
Aura FbtMHB Chta PLC Onf Cl • fi«27 
BM Coot Raid Management PLC CM lOp - 

HMtaga PLC Oaf 8p - £068 
teacMra* CbOta PLC Ord 10p - £2 03N84 
Dawum HdB* PLC CM 10D- BO 
Ecdaataascai inauraw QQra PLC26% 
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Juaay Nm WaMwodta Co Ld 3%% CUn 
3rt Prt E3 - Cl% 

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Lmmm PU! CM ttp - £1% (13Ja04 


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North renttora Unas 4960(134) 

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FINANCIAL TIMES WEEKF.Nn JUNE 18/JUNE 19 1994 


HARKET REPORT 


LONDON STOCK EXCHANGE 


Gains reversed after gilts prompt late sell-off 


FT-SE-A Atf-Shave index 


1,575 -/»— 


E^r Terry Byland, 

IAC Stock Market Editor 

The UK stock market, encouraged 
at Brat by a better tone in global 
bond markets, turned off in late 
dealings yesterday when gilt-edged 
securi ties fell on the announcement 
DfiX t week's auction of govern- 
ment securities will be a further 
tranche of Floating Rate Treasury 
stock. 

The last day of the UK equity 
trading account was dominated by 
expiry operations in derivatives 
markets in London, Frankfurt and 
New York. Traders ascribed an ini- 
tial gain of nearly 20 points on the 
Footsie Index to the traditional 
hook-squaring operations surround- 
ing the expiry, at about 10.20am, of 
index options and index futures on 
the London International Financial 


TRADING VOLUME 


Mqlor Stocks Yesterday 


Futures (LIFFE) market 

The day's peak of 3.049.7 left 
intact the upper end of the current 
trading range. Shares drifted lower 
once the derivatives expiry was out 
of the way and the Footsie showed a 
fall of 13.1 at 3,017 as London waited 
to see if New York would build on 
its overnight gain 

The FT-SE Index closed a net 7.2 
down at 3,0229, with the Dow Aver- 
age 8 points off as London traders 
set off far home. British Petroleum 
stocks continued to do well cm the 
bad: of more positive views on ofl 
prices, and both Enterprise Ofl and 
Lasmo, its bid target, strengthened 
as the market awaited develop- 

limn fas . 

The broader market, less closely 
finked to the derivatives expiries, 
traded easier and the FT-SE Mid 250 
hides fen 7.1 to 3A27.L Seaq busi- 


ness increased to 736.8m shares 
from 6193m on Thursday, with non- 
Footsie stocks making np around 62 
per cent of the total - a farther 
indication of the focus on the 
derivatives-linked bine ehips 
The Footsie has fallen by 33 
points over a week which has seen 
investment confidence challenged 
by domestic and tnfermitinmii fac- 
tors. The Mansion House speeches 
from the UK chancellor of the 


exchequer and the governor of the 
Rank of England felted to unsettle 
equities in spite of their rejection of 
early tax cut suggestions and warn- 
ing that UK base rates will rise 

later year. 

But renewed uncertainty in world 
band markets such as ofl and com- 
modity prices has arisen, because at 

nnw stage this week intpmaticmal 
doubts unsettled shares contin- 
ued to overhang markets last night. 

Over the two-week account which 
dosed last night., the Footsie has 
risen by about 0J8 per cent, leaving 
the 3,000 mark still a testing level 
for market support UK equities 
have found it impossible to move 
Car away from this level over the 
past month 

Government bonds put on more 
than half a point in early trading 
yesterday before taming off smartly 




..V*75>rr 


EQUITY FUTURES AND OPTIONS TRADING 


VOL Cta*<a Day's 
OOOb prioa ctmnoa 


VU. Qostaa Day's 


ASD* Groupt 

Afcboy Naflamft 
Abort Rohar 
MtoHjarafr 
AnQflon MUor 

AlBQH 

ArgjCQavf 

ArtoWtapfcwt 

AMOa BA. Foodst 

Maoc. Bttt. Parts 

BMt 

BAT Ms. t 

BET 

HOC 

BOCt 


BTt 

BTfVPakO 

ffmf 

Bn* er Samandt 


a*oa 

BSto 

422*, 

+4. 

Umdm 

Afinn 


•h 



Lucas 

2*00 






MB>Ct 

2*00 










s»h 

S! 

Manvrab 





338 

fetorts ft 8panearf 

2*00 

400 


0.700 



hOdsncto Bed. 




3*00 

231*2 


Mantoan (WOO 





SIS 


mef 

Arm 



era 

1*00 

286 

937 


MatWast Btecf 

NtendPowart 

4700 

1*00 


a 


406 

-6 

Nad 

8*00 

248 

-1*2 

**0O 

118 

+i 

North WteWterf 

1.100 

488 

+4 



-4 

Northom BacL 

474 



T*0O 

T19h 

-11% 

NorthomFentef 

i.ioo 

211 

-ft 



+3 

Norate 

366 

828 

-4 


Dealers reported a dull and 
uneventful expiry of the June 
index options and Index 
futures, leaving traders to 
focus on weaker gilts and early 
losses on Wall Street, writes 

fl l/TL^w. 

JOGt FJD3ZO. 

The mid-mom ing expiry in 
futures saw the June cont r ac t 
finish trading at 3,038 on 


volume of 6,083 lots. 
September, the new market 
leader after June's dose, 
finished at 3,013, at a 5 point 
dscount to cash, on volume 
Of 16,341 lots. 

Tivnover in traded options 
was 36,942 contracts, of which 
19,758 was dealt in the FT-SE 
100 option. 


T-ee 100 Moex BJTURES (LFF^ £2S Ptf U IndGK pen 


MMQBt 
MWiLond 
British Stoatf 
Bum 

BnV CMMf 

Bum 

Cteaft Wfewf 
CuKioy SctnappBSt 

Ctof Group 

Caadcnf 

Carim Cnnm.t 
Coats VVakf 
Canon. Ifeteft 
Carton 
Osmttt 

DslgKy 

OaLaFbrtlf 


SgCMaOtM 
toirttoit 
EuMoMol UBts 

no 

& CoL LT. 

Can. AocMmt 

derate Boctf 
C toot 


a.700 3i\h 

4200 33 

4200 308 

4100 1 Mb 
4000 661*2 
4400 516 

4300 271 

72S 300 

4400 600 

1,000 450 

430 488 

4000 308*2 
14000 265*2 
4200 37T 

4000 133** 
4000 104 

813 876*2 
4100 574 

4400 434*2 
4500 438*2 
738 277 

4200 900 

435 068*2 
4200 231 

830 624 

STB 253 
1200 504 

488 410 

730 870 

1.600 180*2 
ijno ao8*i 

1.100 577 

1.100 836 

4500 414*2 


P 6 Of 
PMnpen 
PoMGont 
Prwfcrteff 

RTZf 

Ftote 

RankOo-t 
RecUn ft Cofcnnrtt 


BoQsRoycet 
Ryl Bk ScoCkmdt 
Royal hauianoer 
Sajtoayf 
Ocfr rodc ra 

ScoOWi A Nnw.t 


Sonant Doncf 
SMDnnint 
SWwf 
SUutfiEtta 
MhfKHJA 
So*b 4 Nenbawt 
SnMBoedwlt 
SriM Beadwm U&t 
Smite tote. 

Soutem BocLf 


1*00 621 
1*00 827*2 
1*00 176 

3*00 406*2 
4200 287*2 
404 823 

4300 889 

4700 230 

1.500 307*2 
832 681 

4000 477 

4000 794 

821 210*2 
1,600 480*2 
4800 100 

1400 420 

1.000 257 
4800 418*2 

a i loo 

70S 518*2 
400 341 

1.800 368 

4200 117b 
1300 178 

1*00 326 

1.000 508 

4.100 705*2 

1.100 539 

813 236 

022 487 

1.400 150 

4800 410*2 
1.500 370 



Opon 

Sett price 

Ote«e 

Hah 

Low 1 

Eat. vol 

Open lot 

Jun 

30360 

303&5 

+13* 

3048* 

3034* 

anna 

14645 

Sop 

3044* 

aoiao 

-22.0 

3058.0 

29650 

16341 

46440 

Dec 

30500 

main 

-2X5 

3068J) 

3057 a 

251 

752 

■ FT-SE MD 290 INDEX FUTURES (UFf^ CIO par to Max port 



Jun 

35400 

354SJ 

+S-5 

35500 

35400 

267 

2144 

Sep 

3635.0 

3526.0 

-27* 

35550 

35300 

268 

3634 

■ FT-SE « 

B 2SO BffiEX FUTURES (OMLX) CIO pwful index point 



Jun 

- 

3645.5 

- 

- 

- 

- 

771 


OnndMaLt 

oust 

QfCf 


2.700 

mi 

-15 

Somti Wfetas Bwa. 

141 

818 

-17 

2*00 

185 


SouPiWsatWate 

025 

503 

-2 

1,700 

140 

-4 

SouOl Wtat 80CL 

Bag 

5B4 

-12 

1,700 

138 


8ou9woi tea 

1.100 

514 

+1 

1*00 

230 

-0b 

Standwd CtaruLf 

2,700 

270b 

-«b 

1*00 

554 

+4 

Stonteute 

817 

215 

+c 

3*00 

207*2 

-3b 

SuiMHnoot 

1^00 

305 

-0 

R*nn 

579 


TBH 

M3 

235 

-1 

IBB 

338 

♦ib 

TlQroupt 

1*00 

3B4 


1.100 

333*2 

♦4b 

1S8t 

2*00 

224b 

+1b 


410b 

-ib 

Ttoniocf 

6*00 

136b -6*2 


Land SocuOMt 

Uoorn 

LegUA Oanwft 


4000 100*2 -ej* 

4200 586*2 +2b 

4400 460*2 -3*2 

4700 706*2 -**2 

217 340 -6 

7J 00 251*2 -1 

4300 107 *3 

4780 180 -C 

4100 308 *2*2 

4200 784 -13 

772 4BB*z «>2 

154 503 -4 

1.200 502 

157 882 12 

4*00 160 -4 

4600 818 ' -7 

544 744 -ft 

1.300 €4*2 -11*2 

1.300 337 -6 

4200 503*2 <6*2 

14000 149 48 

8>4 682 -8 


Unfed BucUtst 
UHL Nauvapan 
Votetonot 
WartMB(SGrt 


vntum Mdga.t 


1,400 401 

4800 122 

7.800 223*2 
4400 470*2 
717 1059*3 
4.000 233 

4500 85*2 

404 380 

TJDQ TOO? 
1,400 322 

852 803 

4200 607*2 
803 719 

GOO 004 
BOB 508 
346 004 

387 534 

709 348*2 
4300 157*2 
•71 158 

830 720 

1300 640 

1JPOO 408 
4400 730*2 


i *e lot praetooe day. 1 Exact teuno i 


■ FT-SE 100 B4DEX OtmON {LFTQ pygl) CIO pwfa* pofe* 

2B50 2900 2950 3000 3090 9100 3130 3300 

CPCPCPCPCPCPCPCP 
to 171 121 7i 21 2979 129 179 

M 175*2 15b 131*2 22 S3*2 38 61 55*2 38 83 28*2 TWa 11 159*2 4*2 203*2 

Aug 180*2 30*2 158 43*2 tt9 59 99 80 95 104 43*2 132*2 29 188 17*2 200*; 

SOp 209*2 47 173 60 141 77*2 111 97*2 04*2 122 63*2 150*2 «*2 183*2 *S*2 219*2 

Dect 212*295*2 15* 135 106 186 88 247 

CSk 4753 Ate 10*54 

■ EURO STYLE FT-SE 100 9CBC QPI10W ^FFg CIO per M Index point 

2B75 2925 2975 3025 3075 3125 3175 3225 

to 163*2 113*2 63*2 13*2 38*2 88*2 138*2 186*2 

ii 146*2 18*2 188*2 27 75*2 43 46 85*; 27 95*2 14*2 133*2 7 174*2 3*2 220*2 
Aug 138 SI 78 92 36*2151*2 » 227*2 

Sep 153*266*2 87 109 55 165*2 27 238*2 

Docf 194*2 100 137*2*40*2 93*2 194 81 258*2 

Mi 835 Mi 8.092 * l to te»H» tort toe. HiUwi ton — bud an M B fcmw t prion, 
t Lap tetod w&y mote. 

■ EUTIO STYLE FT-SE MH1 230 ■ffiEXOP’TIPH fOftCJq CIO p<r ft* feidai pofrtt 

3460 3500 3S50 3000 3850 3700 3750 3800 

JBi 85*2 «*2 4*2 54*2 104*2 

M 35*2 «*2 54h 61*2 79*2 41*2 
CM 0 Mi 0 Mwi prim end atm n Han 9 UOjbl 


FT-SE-A INDICES - LEADERS A LAGGARDS 


■ GflnBilM. 

MAaiWiriraa. 


at too art — 

Utead Ertwon . 


ft-se SrariCneET. 
Eietaeako 


CtekiMIBntfiMSMl 
■ M FT-SE 160 Ma mount 


740*2 M*2 

MOCtoTnW 


Toon 4 tort 

tkMctBKErt 


is sines Ocean rt i 31 1993 b 

— +1058 ft! if 

— +444 ttort Cn 

_ +421 FT-SE 186 250 n IT _ 

*4.75 Seitea 

_ «464 IWten 

— +363 FT4EIMBB ■_ ■ 

+2.40 Steport SmScai 

+139 toftertrt 

+0*5 SprtB. ttte 4 CteEX . 

_ +0*3 b itoirt Inrt 

-O 2 FT-SE-A M-SInre 

-034 FT-SE-A 350 

-US Fuad Mn rtduan 

— -335 FT GoM 19*3 Mki _ 

-339 FT-SE TOO 

-438 BrtM&CBoartai. 


id an Friday June 17 1994 

_ _ 5 jj Cosnnr Gkudi 

. -iflo MdiiCart 

-■833 Tswput ______ 

- 4sa irtdifaa 

- -837 B M W 

-■*37 UtMmeca 

- -739 Propea; 

_ 4» 9M4 MM 

- -493 rwrrti 

_-an tear 

~-1(L55 ItaMUa 

-I1.B bds 

. -HJB Tcoscco 


: T - SE Actuaries Share Indices 


i he UK Se:ies 



to 17 

dvK 

JIB 16 

to IS 

to 14 

TW 

to 

Sk 

yes 

feft 

IW 

RE 

■to 

MB* 

Y« 

. Trt 
tan 

1904 

Kp lew 

*to 

Shea Ox 


fT-rem 

3PM 

-02 

30341 

3045* 

3038* 

28714 

4*8 

687 

17*2 

4683 

1128*7 

SOU 

2« 

2931 * 

VS 

>5203 

30)94 

ms 

ZB7/B4 

FT-6E W 258 

SSZ7.I 

-02 

35342 

3558.7 

3578.7 

3215* 

154 

5*3 

2474 

44*1 

1297*3 

4152* 

272 

3827.1 

no 

4U2* 

3094 

137X4 

21/1*6 

FT-SE Ml 250 « hr TntM 

3527* 

-02 

3534* 

3560* 

35844 

32324 

3*9 

629 

H26 

4(80 

129321 

41W7 

18(1 

3027* 

17/B 

(1807 

19(1/94 

13783 

21/1*6 

FT-SE-A JSB 

15223 

-42 

15258 

1535.4 

159(0 

1435.7 

3*6 

6*3 

ipm 

2133 

118341 

1778* 

272 

MB.! 

1/8 

1778* 

20 m 

89(5 

14(1*6 


1850.73 

-41 

1110 711 

1857*8 

105923 

153747 

3*1 

3*1 

32*0 

2087 

1421*6 

209426 

40 

185073 

17* 

200(98 

4094 

13B3J9 

31/12/92 

FT4E SnteCap n \m Irtk 

1627*7 

-41 

182436 

183194 

1836*4 

1E4XW 

117 

429 

3057 

2148 

140748 

SB6L72 

472 

XBB29 

4/1 

2080.72 

4094 

unit 

31/12*2 

FT-SE-A ML-SURE 

151501 

-42 

151630 

1528*8 

15243 

1422.43 

3*9 

544 

16*1 

2277 

1177.18 

12B(T1 

272 

148(63 

1* 

1784J1 

2004 

81*2 

13/12(74 


FT-SE Actuaries AH-Share 

D Bh* 

Jn 17 Jm 16 to 15 Jm 14 


Oh. Earn. WE Wa* Tool 
yt« JB9 Rdto Hd Rakxti 


10 HBBUL EXItMCnlMrm 

12 ttncflw MuSktssH) 

is ottognmip) 

16 01 EafenOoa 6 RtxfM) 


so sai —H wcap w) 

21 BuHng 5 Cuatedtonpn 

22 BASng Urt i HenSaPD 

23 □wntofct?!) 

34 OtrocriBed (nthakrtOQ 

25 ancTOfc & Bid E»VP4) 

ZB tntfn « gri no(ni 

27 BHAHMrtV. WWdBSf12J 

28 WMng. Paper 6 MaPS) 

28 TcttOM a tortOT 

30 COHSUHBI SOOOSm 

31 BmwrisstIT) 

32 SpMb. Hu 6 CMusflO) 

33 Food UaajtaMiironCT 

34 Hucfuld 6oad919 
38 Heaflh CmCM 

37 W u n aaceu Bca u fni 

M Idwecat*! 

40 SBMCES(220) 

41 Duaukn01| 

42 Ltmn 3 HoMaCd) 

43 UuMpn 

44 nttin. FoodfiT) 

45 Datarieo. 6ewrt*fl 

48 Sappori ScnkusM 

49 TkaupaiitiQ 

51 Ote SrtCM 6 BBtinsnOO) 
so uramESpa) 

82 UKKtt(17) 

64 On DtttmtiMff) 

G6 Wm—M UH 
a waanra 

69 MMWCU>LSp31) 

70 MMKMLSfM) 

71 Banlane 

73 kmaaatiT) 

74 uk Awu anceg l 
73 Mods* BrtoO 

77 Otar FtaurtH) 

79 Pwpartrfg) . 

80 omsTkMT TBUSTSflZZ) 

89 FT-SE-JI Ml-SHMtE(8B5) 


2882.43 +02 297774 2677A7 268037 223070 148 437 2870 8738 106535 Z73834 

384738 +0.4 383337 390333 390474 306410 3.45 575 2338 4339 104082 410735 

263440 -02 2B3B35 262833 2632.17 716020 339 450 2734 4043 106008 2MJ6 

195018 +33 188400 188337 188087 7M07D 335 177 BOOOf 1532 111733 2G8833 


-03 19*938 197033 
♦Ol 115156 1171.19 
-03 1823.40 1875.72 
-1.1 239097 Z40OSB 
+03 195487 197S31 
-07 2009.72 200733 
-04 180045 182413 
-05 226991 2301.77 
-07 278732 2786.73 
-04 174333 175872 
-03 265070 266877 
-04 217959 218353 
-04 2813.18 284177 
-05 219009 230054 
-17 248001 243490 
-07 167138 167072 
+0.1 287231 289033 
-1.1 344372 348089 

194730 195428 196034 179930 

+0.7 274020 Z7440S 275890 266020 
-02 213331 215039 214136 184140 
-09 299078 2975.11 2975.71 234850 
+23 16557S 182932 1831.92 194470 
-03 1689.14 168035 163979 149280 
-0.4 155915 158271 156958 1512.40 
-03 227942 230034 232437 206750 
+05 116961 119927 118407 124350 
-05 SZ09ZT 221432 224905 213750 
-17 214996 2148.78 219043 175950 
-1.1 178996 190928 191987 198130 
-0.1 194734 185371 194471 201950 
+ 07 169931 171930 173976 162530 

-02 1B3B31 164939 1S51.7T 154132 
-91 214739 215970 213909 2017.40 
+92 279837 280732 277994 2497.10 
-99 121938 123940 122134 134990 
-98 229633 230432 229434 258880 
-92 278958 279672 278537 256920 
+94 181038 181427 181474 148280 
-13 151489 151939 152M2 135350 

-07 274952 219980 214737 233730 
-92 T51830 152659 152873 1422.43 


338 499 27.11 2929 97909 223288 

124 475 3941 1982 89539 10910 

404 451 2928 3073 84911 23B22 

991 400 3150 4252 104172 288272 

484 456 2778 3948 99913 223137 

359 650 1977 1238 96958 22058 

337 422 2930 2132 101438 2011.17 

463 279 8058 3233 198994 251871 

331 913 2910 3733 10B91B 384981 

433 570 2939 2946 97911 202188 

453 738 1927 5058 88858 304938 

454 7.77 1550 3918 98916 248482 

395 679 1736 5878 33359 BBH 

458 928 1408 4275 90981 2B09B4 

360 735 1993 4074 88918 289414 

337 338 9975 1930 85734 189913 

445 733 1909 4778 89094 324771 

0191000 114110255 7SB44 471088 

112 008 1075 2105 94838 22B777 

123 924 1936 3904 94957 331933 

144 434 2979 1942 103549 TWO 87 

271 906 2111 3955 101231 334911 

176 008 1153 25.18 99934 181429 

337 040 1958 2458 88408 181057 

235 638 1139 1175 93274 T8BB43 

170 918 21.40 1914 87481 280088 

448 229 80301 531 101177 136058 

4.74 IBS 1422 3UB 82838 BBS 

4.13 1232 1910 2437 86158 2*1912 

6.78 t t 5143 80734 238977 

425 739 1923 009 80930 248042 

9891164 004 1972 82064 212BJ9 

ISO 029 1932 2110 114140 187038 

421 93$ 1184 4473 84057 2737.12 

IK 927 1405 5907 83027 3B8155 

9321159 940 2144 81973 W51 

545 739 1937 6938 86496 282137 

1801111 938 4445 83140 37B429 

177 7.89 1556 2987 95980 227038 

408 4TB 2988 2100 85138 188088 

123 150 5119 27.42 91970 219431 

169 044 1831 2277 1177.16 USUI 


13/5 2(3098 
212 371092 
105 234888 
Z7A4 178440 


2/2 184UB 
8/2 115158 
2471 ISIZTB 
Z7A4 2298*4 
2/2 19*4*7 
4/2 19SUB 
272 179113 
2/2 21717? 
18/3 2821.18 
4/2 171038 
24/1 257414 
10n 714*00 
34 71 2801*3 
1971 2IKJB7 
18/2 243853 
19/1 189980 
19/1 284150 
7/1 337141 

1971 190150 
2/2 274020 
i7/2 asm 
17/2 2917*0 
1BTI 1511*4 
4/1 M2LSI 
2(2 184032 
22 220448 
10/2 1139*2 
2B 20834 
272 203459 
7/1 T 73 2 .5 2 
272 188488 
3 a 183088 


4/2 208482 
412 2S912 
24/1 118131 
IBfl 2IW3I 
2/2 278431 
472 178088 
412 150048 

2/2 273181 
m 148433 


31/3 273044 13OTI 88028 19088 
3/S 410755 2f2fX 1000*8 31/1205 
30/3 2BBL2B 11V5S4 88230 2V2/BS 
31/3 394410 8AV0 85030 2V7/B6 


17/B 223238 2094 

18/8 2125*0 16/7/87 
T7» 238322 2UVB4 
5/1 255221 2774/94 
1618 223157 2/2794 

1/8 226138 472m 
1738 2BTU7 212794 
4/1 281071 2094 

4/1 384931 18/3/M 
7K 232530 2/HM7 
1/B 308000 22/T2/BZ 
1/6 24842 19/1/94 
17/B 34872 11/5182 
6fi 2880*4 19n/94 
17/8 288414 16/2/94 
31/5 2M738 28/9/87 
UB 418838 WUB 
1/8 4739*3 29/12/93 

1/B 220777 19TUS4 
16/8 331823 2/2/94 

1/B a>U2 17/2194 
1/9 314011 17/2/94 
25/4 22X20 2B7VB3 
MB 183424 797X27B3 
17/6 IMLO 272K4 
27/5 280538 37279 4 

21/4 245030 16/7787 
1/B 278237 2094 

96 281 U2 2/2794 
UB 2379*8 16/12(93 
VS 248M8 28/1263 
B/5 212079 3/2/94 


IAS 213753 40194 
46 380155 4094 

Z7/5 162420 28/12/88 
1/9 282137 19/1/94 
17® 32*139 20194 

2 M 227035 4/2/94 

173 2 m*o saiaa 

1/6 31*431 2094 

1/B 179471 2094 


98410 14/1/88 
53850 8W92 

854*0 9/9/B2 

879*0 14n« 
884*0 21/138 
988*8 29/936 
982*0 10/1137 
985*8 14/1/86 
97350 14/1/88 
980*0 24/3S0 
96750 14/1/88 
982*0 14/138 
96750 14/136 
9(010 14/136 
82010 21/136 
972*0 2V1/88 
86470 13/1/86 
892J0 9T136 
944*0 23/1/85 
98850 21/136 
97040 21/1/88 
97920 9/136 
917*8 21/138 
87810 S/1238 
838*0 1331 

868*0 14/136 
98110 14/136 
88259 3/1036 
986*8 7/131 

0490 8(1238 
90290 3(1036 
82470 1/530 

83*8 13/12(74 
97220 23/136 
888*8 23(136 
S7U0 25332 
96778 23/136 
882*0 277136 
95650 1/1OT0 
716*0 16332 

97758 14/136 

81*1 13/12(74 


■ Hourly n»wmw*» 

Open OOP 

pr-.ep 100 30385 3047^ XV 

35375 3544.1 35« 

Fr« Mid 250 ,5340 153 ; 

FT-SE-A 350 15 » L7 ^ 

TVno of FT-SE lOOMgtr 65Bun 4,Oipm 

■ FT-SE Actuaries 350 Industry ******* 

Open blPO 10 x 10 

10763 1081 i HW1-2 

SJASSS 2851.2 2851-2 28517 

Ramnceunda itoCS lTOTA 

bevuteirnM) ***”- BrttyweHonorg 


3038.0 30330 

35345 ysff.p 

15303 1527.7 


HBWd*y LarMn 

3049.7 3017* 

35465 3S2&J0 

1535.4 15209 


f seedao or i 


FT-SE lew DM bakes 
FT-SE SmaflCop 
FT-SE SprtCap o bar ins 
FT-SE Md 250 
Hi* FT-SE WO. Bit FT-SE 


31/12/32 1000.00 FT-SE Md 250 m to Into 31/12(35141080 WttV 

31/12/92 1363.7B FT-SE-A 350 31/12(85 082*4 Non-Fhandab 

31/12/92 1383.79 FT-SE 100 3K1Z/83 lOOQOO FT-SE-A Afl-Shats 

31/12/85 1412.00 EJoclric # i 3V12» TOOOJJO ABOttwr 


FT^MdaO 31/12/85 1412.60 EtoMdt 1 31/12(90 tudujaj as ottw 

-jk -v) m fT^E Acauria 3B0 aiucsa mv cufplad by •* Stock Enhanpa and te FT-SE / 

(duot Tanas UMod. “"‘JSJrL- Tr— liwd 1094. A* Hpaa uaawil "FT-SE" and "Ratter ara pin nda marts i 


•tePi-M. HW ■— fcteUterf/tolirt— nateFeeuyni arn te as uwar gate a t m i 

round Tanas tinted. W ^nr?Lirl)i” — LMted 10B*. A* ligmi noaiwiL "FT-SF and "Ratter ora pint 
r*”*?.* ?sS?WE»S pm B-n 80 a» nm Pan t fttou - nagroiteDBnim 

LOnUad 4ud4a r TT» HIM Conaary. T «■ 


1084* 10005 1082.1 1078* 

28S8.1 2847* 2B49.7 284SD 

16989 17005 1701.4 16879 

26449 28359 28379 2832.4 

Saw Ban 


29/12/89 100090 UK Gte IntSeea 31/12/75 10000 

1074/62 ttftOO lodm -Lifted 2074/82 10090 

1CM62 10000 Drt» and Loans 31/12/77 10000 

31/12/85 1000.00 

uataa *a«us fete tea a» FT-SE artOtp lodan ua eonplad by 18* 
te O Tiro kteUoad SBak Etdteaa <4 am UKTOd nradnai and 
I aantoa nuria td tm Lawn S»* EKtadte and Tha Ftendri Uma# 


in heavy 
trading 

British Petrolenm, the UK's 
flagship oil company, raced up 
to an all-time high of 415p in 
mid-session before coming off 
the top and settling a net 3 
higher at 411Vip as the stock 
market became increasingly 
optimistic about ail prices. 

Brent crude for July delivery 
was trading around $16.90 a 
barrel late yesterday and 

lnnlring to mOVB even higher , 

dealers said. Oil prices have 
moved up by around a dollar a 
barrel over the past week fol- 
lowing the Opec meeting in 
Vienna, viewed as reasonably 
s uccessful, a techniraii squeeze 
and increasing worries about 
the gftimtinn hi Korea. 

Analysts voiced some con- 
cern over the current excite- 
ment about the pnaofhle lifting 
of a US ban on exports of Alas- 
kan ofl, a move which would 
provide a big boost to BP'S 
earnings. “There is mounting 
opposition in the US Senate to 
a lifting of the ban, which 
could delay a decision until 
September,” said one oil ana- 
lyst 

It was also pointed out that 
the Kuwait Divestment Office 
may be taking a hard look at 
(he perfor mance of crude ofl 
prices and the BP share price 
with a view to placing its 9.7 
per cent stake of around 540m 
shares at a consider able profit. 
At least one US brokerage is 
known to have bid for the KIO 
stake in BP with a view to pla- 
cing the stock across the globe. 

OQ bid alert 
The Enterprise/Lasmo bid 
battle flared up again with the 
latter the market’s heaviest 
traded stock and the former 
the FT-SE 100's best individual 
performer as the takeover saga 
moved into its closing two 
weeks. 

Lasmo shares underper- 
formed a generally strong oil 
sector early in the session, still 
weighed down by worries that 
the Enterprise takeover bid 
will fefl. However, late in the 
session the stock price poked 
up. eventually dosing a net 8 
higher at 149p after very 
heavy trade of 15m shares. 


on the news of a Floating Rate auc- 
tion, which was seen as an indica- 
tion that the authorities are as 
aware as the market of the uncer- 
tain mood of the bond market By 

the close, long-dated gilts were a 
net £ lower, with the shorts just a 
touch off an the day. 

The gfltedged team at YamakM 
commented to clients that the bond 
market is “caught in the dual grip” 
of domestic uncertainty on inflation 
policy and global inflation con- 
cerns reflected across the broader 
range of band markets. Yamaichi 
believes that the UK market has 
established a wide trading range 
c ons i s tent with these uncertainties. 
While eonfidant that gflty will break 
out higher as investors perceive 
that inflation concerns have been 
overdone, Yamaichi sees a down- 
side risk In the near form 


■ CWEFPHCE CHANGES 
YESTERDAY 

London (Ponca) 



Equity Shares Traded 

Tumow by w*ume (mS*<x). Exdudbiei 
— - Mre-tmtatbuane»ox1 owrMesbirnw 
. 1,000 — 


rr 200 



■ Kay Indfeators 


Indices end ratios 



FT-SE tOO Index 


FT-SE Md 250 

3527.1 

-7.1 

Closing index for Jun 17. 

— 3022.9 

FT-SE-A 350 

1523.3 

-3^ 

Change over week 

-33.0 

FT-SE-A AB-Share 

151&01 

-029 

Jun 18 

3030.1 

FT-SE-A Al-Share yield 

3JBB 

(3^9) 

Jun 15 

.... 3045.8 

FT Ordinary index 

2373.0 

-10.4 

Jin 14 

— 3039.6 

FT-SE-A Non Fro p/e 

19.32 

(19^7) 

Jun 13 

—301&3 

FT-SE 100 Fi* Jun 

3013.0 

-29.0 

High" — _ 

— 3059.2 

10 yr G2t yield 

8.75 

0.74) 

Low* _ . 

3004.4 

Long gUt/equity yid ratio: 

2^1 

C2-26) 

"lnlra-day high and lew for week 


Kl "Ratter an Ate wd» ortro and anta aaria <4 Bro London Ste* Extensa and Ha 
nognm. DUDOtfe IWC Qmp. 


THERE'S A 
HANGING 
EVERY 
MONTH 

Great Art demands the 
greate s t space; that's 
why on the first 
Saturday of each 
month the FT 
publishes a full colour 
Art section devoted to 
art and antiques. 
The weekend FT Is 
read by an estimated 1 
million people In 160 
countries, reaching 
affluent Inte rna t io nal 
investors and 
collectors; providing 
the Art world with 
exceptional and 
effective advertising 
opportunities. 

37% of Saturday FT 
readers have bought 
paintings or antiques 
bi the last two years 

(FT Reader Survey 1992} 

For more h d om atlo n about 
sdvwlMng pteae contact 

Genevieve Marenghi (071) 
8733185 
James Burton 
(071)8734677 

The Financial Takes - 

PUTIWG THE COLOUR BACH 
into Ant 


Border TV 
Borland 

Drayton Korea Tst 
Faupd 

Hay (Norman) 
Haziewood Foods 
Hepwortti 
IntBusnComm 
Jacques Veit 
LASMO 
Latham (J) 

Metro Ratio 
Norcros 
Shoprite 
Vickers 


British Vita 
Caradon 
Dart Group 
Euutunnal Uts 
MAID 

Osprey Comm 
Rea Bros 
Trio HJdfls 


169+6 
738 + 63 
141 + m 
76+4 
43+5 
143+7 
320 + 13 
191 + 10 
185+7 
149 + B 
215+20 
393+13 
134+7 
59+6 


Enterprise, meanwhile, were 
always on the uptick, and 
raced ahead to 438p before dos- 
ing a rt 16% Wghiw at 414%p 
with a good &5m shares (hang- 
ing hanfe 

Close observers of the take- 
over str u ggle grid that the out- 
come was much closer than 
the market was indicating . 
Others, however, said that 
with i*wanr> shares gffli at a 
discount to the bid terms - 
worth around 170p a share - 
the odds favoured a Lasmo 
escape. It was also potntpri out 
that the recent strong perfor- 
mance of the oil price was 
making Lasmo's assumptions 

in its defence rinrnment look 

increasingly conservative. 

Eurotunnel weak 

Channel tunnel operator 
Eurotunnel tumbled another 15 
to 288p, in heavy trade of L6m, 
as selling pressure over- 
whelmed buying orders from 
clients of the company broker 
SG Warburg's. 

In spite of continuous bid- 
ding for stock from Warburg, 
market watchers continued to 
suggest that large institutions 
were unlikely to take up their 
rights in the company's £858m 
issue. They also warned that 
the continuing slide in the 
share price had begun to 
undermine the confidence of 
the small shareholders in one 
Of tha UK'S biggest retch calls 


ahead of its close on Wednes- 
day. One broker said: “There is 
little appetite for small holders 
to take up the issue.” 

Sentiment was further weak- 
ened when UBS yesterday reit- 
erated its long-standing sell 
recommendation. UBS said: 
“We believe the shares are fun- 
damentally overvalued even at 
the rights {sice of 265p.” 

Food retailers continued 
strong yesterday with J Sains- 
bnry kwHng the charge amid 
talk of prospective US support. 
Britain's biggest grocer con- 
firmed it is to visit institu- 
tional shareholders in New 
York and Boston to host meet- 
ings with US fond manages, 
although it denied market talk 
in London that it will apply for 
a “big board”, or foil, listing in 
New York to facilitate greater 
US liquidity in its shares. 
Sainsbury shares are already 
traded in ADR form on Wall 
Street 

Rnf-V in T-tmtAtti dealers »°rid 
that pent-Up demand for the 

leading food retail stocks, 
which have been slowly creep- 
ing hark mtn favo u r in recent 
weeks, has been ranging stock 
shortages and pushing up 
prices. Some more longer-term 
investors have also been 
spurred by renewed specula- 
tion that food price inflation 
will r e tu r n to the system by 
the year-end. 

Sentiment has also been 
helped by broker research - 
notably from NatWest Securi- 
ties - which forecasts a con- 
tinuing lean timp for food man- 
ufacturers as food retailers 
maintain pressure on margins. 
Samsbury shares motored 12% 
to 416%p on 6m traded, Tesco 
gained 5% to 229%p with 6.1m 
turned over, while Argyll’s 
good run faltered and stayed 
steady at 2S2p. 

Northern Ireland Electricity 
was a lone bright spot in the 
electric! ty/power generation 
area of tire market after Hoare 
Govett, the stockbroker, high- 
lighted the short-, medium- and 
long-term attractions of the 
stock. The shares rose 7 to 

221p. 

Hoare's utilities team 
pointed out that the stock’s 
recent underperformance 
against the sector was because 
of the impending and final 120p 
nail on the shares, due on June 
28. The shares trade in frilly 
paid form from Monday. 

Property developer Greycoat, 
which underwent a financial 


NEW HIGHS AND 
LOWS FOR 1994 

MEW MOHS W1|. 

HIM f<) Toyo ToL A Ok*. BflENBEl f1| 
HoB W. BU>Q M ATIB* MCH1S Q| laTOam H, 
DaiHUuroRS n utero mwa 
HiBiiinniiBUWFwrOrtw, 

BJXTIMQ ft ELECT BOUPtn NEC. 
noMBmtnaidnCMoi, 

EXTRACTIVE MOS M Anglo Am. CM. Duban 
Deep. Fraa Sate Dev* Irapte PMnuoi 
RuUrrtug Rntrun. 3teontoin, HOUSEHOLD 
00003 11} Oeboma & Lftlln. MSURANCT fl) 
MVESTMENT TRUSTS (3) NBMA fl) M«0 
Rodki, 04. WnaORATTD p) BP. Mol*, OTHER 
sows ft BUSNB P) Kuala Lumpur Kepono, 
PR1NQ. MPER ft RftCKO PI IMhf Roto. 
mWPORT SERVS n Umnfamw. Papa M. 
TEXnLES ft APPAREL (B) DawtML Wenewn, 
AIEMCAN8 P) SOUTH AHSCMiS (11 
ICW LOWS 040). 

0H.T8 p) BAMCS (3| AfiN Aram. ANZ. 

DeuaehB. BReWEMES p) VU. BUU»ta ft 
CMSTRM (1) Beazer. BeflMV. Berta**. Eva, 
MeAftBMa W, Arthmn. Taylor Woodrow, 

BUM MAILS ft MCHTS PQ C7BOCAL8 (3) 
ADA M, Bopa, Mania Bony* 

DMTRIBinDRS M Brtdpend. CaKyne, Dtoena. 
Mkttoaw. DMRSmED WD4A 0) Kwtaon 
8Hpe Cne. Bd. Keaarner B. BjeCTRNC ft 
ELECT EQUP O Bfck. Oeoatiy. BMDKMNa 
H Bteough- DWd Mte Eadtak toman 
MBfflwy. UoggM, VSB, WWr. Whwxw. EH4 
VeaCLES (9} Dofeter-Banz. Uicte WWa, 
EX1RACTIVC HDS n Snncaoa topBOBtaa, 
IlMMH FMM Matte Alte. FOOD 
■MNUF n Aotoe A Hwchoaon. tonman A. 
Caiuy O rf ie mpp en . Drigary, Tele ft Lyta Ttap 
Pit, Waterlcnl, OAS DtSTRBUnON (1] Catar. 
HEALTH CARE P) Qmtncra. Plante. 
HOWWOU 00008 p| utot BBURAMCE 
til ■WEBiMBrnRUBis rm nvearnttMT 
OOWAMEB PI IB8URE ft HOTELS « 
toMM ChK QarmL BKX MapioRa. 1CMA (N| 
MBBHKr BAMCS (IJ HaoTOna 7Mpc PH, 
OIHER RNANCML (8) PRTNQ, PAPB1 ft 
PACManOmM.PaMMaM.RPCv 
PROPBITY (16) reiaibh; GBBHL n 
ArpM. CetpetnfpiL Wyovte Qerdan Centrao. 
SPIRITS, WB ft CBJBB fl} QuMItea. 
SUPPORT BERV3 8Q Bnteh DM fetwnft. 
Capdo, Comae, CHS ML, Cktery Softwsro, 
Wateanan Partnonhip, 1BCRLES ft APPAREL 
m BriSMi iMntr. Jenma: Lranbart Hroteh. 
PEX. Rtedeut Site, TRANSPORT (7| 
Btenrt tea, Ob MMs. 1983. Forth Puna. Go 
-AhaaiL Mecaay Dotea ft Hartxu, Itetoort 

Dok. United Canton, AMERICANS p) 
CANAOUNSn. 


restructuring last year, 
nnveiled a three-for-eight 
rights issue at 13p a share to 
raise £47m. The shares slipped 
154 to 1554p. 

There was speculative buy- 
ing among both television and 
radio stocks yesterday. In the 
former. Yorkshire-Tyne Tees, 
which has been highlighted by 
Granada as a potential bid tar- 
get, advanced 5 to 315p. The 
latter added 454 to 53354p. 
Among radio stocks. Capital 
Radio added 5 to 399p and 
Metro Radio 13 to 3S3p. 

A stock overhang left Cara- 
don trailing 11 at 300p. Lucas 
Industries shed 3 to 175p after 
Strauss Turnbull was said to 
have downgraded profit expec- 
tations. 

In the transport sector, yield 
buyers were seen for Ocean 
Group, and the shares 
improved 8 to 283p. 


0/1 3 » 9 92S. 



SKANDINAVISKA ENSKILDA BAN KEN 
US$330,000,000 

SUBORDINATED FLOATING RATE NOTES DUE 2000 

Notice is hereby given that; In accordance wfth the provisions of the 
above mentioned Floating Rate Notes, the rate of Interest for the 
six months period from June 17, 1994 to December 19, 1994 has 
been fixed at 5.1 2S% per annum. 

The Interest payable on December 19. 1994 wifl be US $ 131.68 In 
respect of each Note of US $ 5,000. 

Agent Bank 

BANQUE INTERNATIONALE Aff/77 
A LUXEMBOURG WA7 


The eMtnrlml mol fbt the acetous invntov 


Market-Eye 


London stock exchanoe 


Signal 


O 130+ software appRcatiora O 
O RT DATA FROM SI 0 A DAY O 
O Sjgrt SOFTWARE GUDE O 
Cai London® 44 + (D) 71 231 3556 
far ypM-QHMa and S^nal price Ibl 


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LOW COST . ---VVi V ^ 

SHARE DEALING SERVICE ! 081-944 0111 


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17 


FINANCIAL times WEEKEND JUNE 18/JUNE 19 1994 



























































































































































































































































FINA NCIAL TIMES WEEK-END JUNE 18/JUNE 19 1994 































































































































TIMES WEEKEND JUNE 18/JUNE 19 1994 


21 


WORLD STOCK MARKETS 


Wall Street 


US shares prices were poshed 
lower yesterday morning by a 
powerful wave of trading 
related to the triple-witching 
expiration of futures and 
options, writes Prank McCarty 
in New York. 

By 1pm, the Dow Jones 
Industrial Average was down 
21.88 at 3,789.46, while Hw more 
broadly based Standard & 
Poor's 500 was off 2.11 at 459.82. 
In the secondary markets, the 
American SE composite 
receded 1.65 to 440.13, and the 
Nasdaq slumped 4A5 to 730.12 
amid fresh weakness in the 
technology sector. 

Although there was little 
fundamental news to drive the 
market, activity was robust. 
Investors were busy unwinding 
their positions as quarterly 
options on individual stocks 
and market indices, and future 


contracts on the indices, began 
to expire. 

Some 250m shares were 
already exchanged on the 
NYSE by early afternoon. 
Trading was likely to acceler- 
ate in the final hours of the 
session, with the triple-witch- 
ing activity expected to trip a 
battery of program-guided 
orders. 

Unfortunately fin- investors, 
the overall tone of the market 
was negative, as bonds turned 

bearish a gain 

The price of the benchmark 
30-year government security 
was down more than Vi point 
by midday, as traders reacted 
nervously to a third consecu- 
tive monthly rise in consumer 
confidence. The University of 
Michig an consumer 
index came in at 94.5, com- 
pared with 92.8 in the final 
May reading. 

Investors wav also disturbed 
by a report by the Conference 


Board which said the dollar 
could lose 20 per cent of its 
value against the D-mark over 
the next 18 months. 

Despite the sour mood in 

general, there were no strong 
sectoral trends dragging the 
market down. 

The Dow components were 
broadly lower, led by cyclical 
issues. 3M was down *154 at 
*5154, DuPont lost $1 to *60% 
and International Paper 
slipped *% at *71%. 

Exxon, which shot down and 
then up during the week, lev- 
elled off at $58%, with a gain of 
*54 on the morning. Chevron 
lost *% to *43% after Smith 
Barney ShearBon downgraded 
the issues. 

Relative calm also returned 
to banking stocks after two 
days of heavy selling. Most 
issues were down marginally, 
however. Hank of New York 
eased *% to *30%, while Shaw- 
mut National added *% to 


*21%. But First interstate shed 
a farther *1% to *76%, while 
Wells Fargo continued its los- 
ing ways, dropping $1% to 
*154%. 

The spotlight yesterday 
turned to Quaker Oats. The 
stock jumped *4%, or more 
than 6 per cent, to *75% on 
speculation that wither Nestle 
or HJ Heinz was interested in 
acquiring the food group. 
Quaker derimed to comment 

On the Nasdaq, technology 
issues came under renewed 
fire. Lotus Development was 
marked down *2% at *51%, in 
spite of the that. 

it was buying Softswitch, a 
«wnmnnt<*aHftnq software - sup- 
plier. Analysts said the deal 
was an important strategic 
move. 


Granada 


Toronto stocks eased in thin, 
uneven trade, the TSE 300 com- 


posite index losing 8.38 at 
4,155.07 in 29.6fin shares val- 
ued at CS40Q.3m. Declines led 
advances by 308 to 258 with 279 

nnrhangfld 

Of Toronto's 14 sub-indices, 
five were stronger and cdjfhl 
weaker. Rains in gold and min. 
ing stocks failed to offset losses 
in communicat ions and real 
estate. 

The gold sub-index 'soared 
1.84 percent as London gold 
climbed US$3 to close at 
TJS*38&30. 


Brazil 


Equities in SSo Paulo were up 
5.9 per cent in local currency 
terms at midday, helped by 
active trading ah pad of Mon- 
day’s options settlement 
The Bovespa index had 
increased 1,784 to close the 
morning session at 32,123 in 
turnover of some Cr220-3bn 
(S95m). 


AMERICA 

Triple-witching expiry unnerves Dow 


EUROPE 

Weak bonds, derivatives closures hit bourses 


After a morning recovery, a 
serious weakening in baud 


Jun 17 
harft 


es anare 


Open 1080 TUB 1200 


THE EUROPEAN SSVES 
1100 14X0 1100 Quia 


FT-SE Baoback IX 
FT-SE Eantndf 200 


136133 138220 1361X7 136093 135843 139150 13S1X9 13S0X4 
1401X3 140003 140011 139942 1306X8 130018 1391.18 1300X7 


16 


Jua 15 


Job 14 Jm 10 


Jn 0 


FT-SE Eunhack 100 135078 137041 

FT-SE Bnbacfc 200 1333417 140008 

Bin 1800 Cn/TIWQ; HtfUfcf: 100 ■ MBUB: 300 - UH20 


1333X4 138052 141145 

141181 141284 143280 

100 - 1SS&2S200 - TJB1AS 


closures, from DM6.7bn to 


Ibex fttnrfcs in the cash rnwlraf. 


market sentiment hit bourses 
hard again in the afternoon, 
writes Our Markets Staff. 

In some cases, the bourses' 
problems were exacerbated by 
added volatility on the closure 
of futures and options con- 
tracts. 

FRANKFURT seemed to be 
negotiating its way through 
the DTB options mfnpffpirf, the 
Dax index closing just 4.19 
lower on the session at 2,050.72 
and down 33 per «mt on the 
week. But the closure process 
extended into the afternoon, 
when equities were hit by bond 
market weakness and a report 
of management changes at 
Deutsche Bank. 

Deutsche Bank denied the 
report that a board member, 
Mr Rolf Breuer, was to be 
relieved of his responsibility as 
head of securities tr ading - But, 
said Mr Nigel Langley at Com- 
merzbank, the market was 
already edgy following the 
arrest of the managing director 
of Procedo, the factoring com- 
pany, and the revelation of 
derivatives trading an a mas- 
sive scale at Balsam, Frocedo’s 
biggest customer. 

Turnover soared on the DTB 


DM25.6bn. hi the post bourse, 
Deutsche Rank fell to DM72SL50 
and the Ibis-indicated Du to 
2,031.60. A further drop on 
Monday would threaten the 
closing low of 2,02023 for 1994. 

PARIS drifted at the end of a 
week which saw the CAC-40 
index slide more than 4 per 
cent, in spite of farther good 
news that economic recovery 
was on course. The index eased 
6.86 to 1,93525. 

Hie hi g hli g hts of the session 
were Schneider and LVMH, 
both up against the trend after 
forecasting higher profits in 
1994. Schneider rose FFr8.10 to 
FFr365 and LVMH FFr6 to 
FFr840. 

Rhtae-Poulenc slipped FFr3 
to FFr127, but dealers said that 
it was largely unaffected by 
news that it was to recall a 


batch of its antibiotic drug as a 
precaution after one of the bot- 
tles was tampered with. 

Eurotunnel suffered further 
as fears arose that it would fail 
to get its rights issue away, the 
shares finishing down FFr L15 
at FFr25.65. 

ZURICH, once again, saw a 
fi rm trend early in the day dis- 
pelled in the last hour. The 
SMI index fell 39.0 to 2,627.6 for 
a 4^ per cent decline on the 
week. 

Banks, the hardest hit sec- 
tor, remained winter pressure. 
UBS bearers lost SFr£5 to 
SFrl.115, for a fall over the 
week of 9J. per cent CS Hold- 
ing bearers lost SFrl7 to 
SFr533, off 10J per cent 

Among the large blue chips, 
Nastld gave up 5FTI2 to 
SFrl.133 and Roche dropped 
SF180 to SFr6£20. 


MILAN remained concerned 
about the outlook for interest 
rates and the constitutional 
court ruling on pwnrrinna that 
could cost the government up 
to L30.000bEL The Comit index 
finished 1.79 lower at 698.90, 
down 7.6 per cent on the week, 
amiri mnw imn that thfl sharp 
fall in prices earlier in the 
week was the result of selling 
by domestic brokerages to 
cover the cost of losses in the 
bond markets. 

Fiat bucked the trend with a 
L56 rise to L6256. 

Mondadori lost L720 to 
L15.660 but remained solidly 
over the L15.000 price set for 
the public offering and place- 
ment of 66m shares, which 
ended yesterday. 

MAWtm was half a percent- 
age paint higher at midday but 
it closed with the general index 


week. 

Utilities fared badly. Dealers 
said that there was a huge 
seller in Seviliana, down Pta32 
at Pta638; and Iberdrola, which 
fell Pta29 to Pta936 was hit like 
Pryca, the retailer, by its high 
weighting in the Ibex, real time 
index. Futures and options 
dealers were selling baskets of 


as contracts expired. 

AMSTERDAM, too, had to 
endure the volatility of options 
expiry and the AEX index 
closed the day down 3J2 at a 
new 1994 low of 382,62, for a 
week's fall of 3.4 per cent 
KPN, the partially privatised 
telecommunications and postal 
group, closed its first week of 
trading off 40 cents at FI 4920, 
45 cents below its issue price. 

ISTANBUL continued to 
improve with a 4.7 per cent 
gain an the day and op is per 
cant on the week. The compos- 
ite index rase 911.78 to 
20,233.45, in spite of midses- 
sion profit-taking. 

Turnover was TLL28bn. 


Written and edited by Wilflam 
Cochrane, John Pitt and Mchael 


SOUTH AFRICA 

Gold shares moved ahead on a 
surge of late domestic buying 
as ihe price of bullion broke 
through the *388 level near 
tiie dose. 

Ihe overall index gained 11 
to 5,784, industrials died 14 to 
6,730 and the gold index added 
12 to 2,197. 


Morgan 

down &52 at a new 1994 low of 

307.79, down 5.4 per cent on the 


Tokyo recovery hopes 
bring back memories 

Emiko Terazono on prospects for Japanese equities 


B risk sales of the Kabu- 

shilri Rhimhnn, one of 

Japan’s financial tab- 
loids catering to retail inves- 
tors; a rally in speculative 
favourites such as ball-bearing 
companies or sewing machine 
makers; and the sharp rise in 
daily market volumes. In 
Tokyo's equity market, this 
combination has brought har-V 
memories of the boom days in 
the late 1980s. 

The sudden realisation that 
the economy and corporate 
earnings may be in for a recov- 
ery has prompted a rally 
which, many Japanese brokers 
hope, will pun the Tokyo mar- 
ket oat of its four-year slump. 

“The whole market is 
looking like a cyclical stock," 
says Mr Jeff Bahrenburg, a 
strategist at Merrill Lynch in 
Tokyo. Corporate profits were 
better than expected for the 
past year - down 16 per cent 
before tax rather than the fore- 
cast 25 per cent - and a flow of 
data suggests that the econ- 
omy has stopped failing, at 
least 

The catalyst for the recent 
rally has been active buying by 
foreign institutions, which 
have been shifting funds to 
Tokyo due to the weakness in 
global atnut and bond markets. 
While net buying has been 
unable to better the levels ear- 
lier this year, when overseas 
investors bought record 
amounts of Japanese shares, 
the rise in share prices has 
triggered further buying by 
domestic investors, eager not 
to be left behind. 

The strong rise, says Mr Bah- 
renborg, indicates that "people 
have come to grips with the 
potential growth”. Although 
higher share prices have 
pushed up the price to earn- 
ings ratio for the Nikkei to 
over 100, the figure anticipates 
a firm rise in profits over a 
two- to three-year span. 

On conservative estimates, 
he says earnings fin: the corpo- 
rate sector could grow by 152 
per cent in the next five years, 

a gains t teal pwmnmir. of 2.7 per 
cent This predicates a 42 per 
cent potential rise in the Nik- 
kei, the bulk of it coming over 
two to three years. 

However, unlike the "bub- 
ble" era in the 1980s, when 


every investor participated in 
frenzied buying, many domes- 
tic institutions remain uncon- 
vinced of a sustainable rally. 
While some, not wanting to be 
left out of the rally have 
cautiously joined in, many 
fund managers do not believe 
that they should be buying 
stocks actively at current lev- 
els. 

Mr Yasuhlko Jinza, stock 
investment manager at Nippon 
Life, the country’s largest insti- 
tutional investor, regards cur- 
rent price levels as an “over- 


rraflras rabased 
135 r— 



Source: FTGwpMta 

shoot”. "Once the foreign buy- 
ing stops, the optimism is 
likely to fade," he says, adding 
that Japanese stocks will not 
look at tractive unless the Nik- 
kei index falls below the 20,000 
level 

Japan’s life insurance com- 
panies are smarting from the 
low retom cm assets, mainly 
due to ihe buying of low-yield- 
ing equities in the late 1980s. 
The leading 27 lifo insurers are 
looking at an average 48 per 
cent on their Y148,000bn of 
assets, lower «w>n the 426 per 
cent needed to cover payouts 
to policy holders. T know peo- 
ple are talking about us com- 
ing back into the market, but 
it’s just not going to happen," 
says Mr Jinza. 

With rising interest rates in 
the US threatening liquidity 
inflow, foreign buying is expec- 
ted to start falling - The ques- 
tion many market participants 
are now asking is where share 
prices will go from here. 

Mr Jason James, a strategist 
at James Capel in Tokyo, says 
that individual investors, who 


have been absent for the past 
few years, could be wooed 
away from low-yielding fixed 
interest investments and tufa* 
the place of overseas fund 
managers. 

Evidence that this is already 
happening nan be seen in the 
rally of retail market favour' 
lies, slightly low quality, spec- 
ulative stocks such as Old 
Electric and Towa Real Estate. 
A recent stock market survey 
indicated that the percentage 
of individual investors holding 
equities earlier this year rose 
by 2£ points to 23.7 per cent, 
the first rise in five years. 

Meanwhile an additional 
concern for investors is the 
large outstanding arbitrage 
position. According to the 
Tokyo stock exchange, long 
arbitrage positions as of last 
Monday totalled Y1.46bn, 
slightly lower than the record 
high Y1.49bn in April 1992. A 
build up of arbitrage balance 
puts share prices in a vulnera- 
ble position against negative 
news once trading volumes 
start to folL 

For the next few months, 
says Mr Alexander Kinmont, a 
strategist at Morgan Stanley in 
Tokyo, there are two passible 
scenarios. Individuals could 
pile in, sending the Nikkei up 
into the 23,000-24,000 range, fol- 
lowed by a correction; or small 
lot buying by domestic inves- 
tors could push prices gradu- 
ally forward. 

D uring the summer, 
when trade talks 
between the US and 
the Group of Seven summit 
faHre are scheduled to be held, 
volatility in the yen could 
cause fluctuations in the stock 
market. The attractiveness of 
Japanese shares for overseas 
investors could change in the 
face of weakness or strength in 
other tending stock markets. 

Mir James at James Capel 
believes that a correction is 
likely during the summer 
months, but sees the downside 
of the market to be around 
20,000. He expects that the 
spate of interim earnings esti- 
mates and previews wfll bring 
some cheer into the market, 
and forecasts the Nikkei 
around the 21,000 level at the 
end of September. 


ASIA PACIFIC 


LONDON EQUITIES 


Region firmer as hopes rise on N.Korea 


Tokyo 


Using hopes over increasing 
Lialogue between North Korea 
ind the US, and the weakening 
if the yen encouraged buying 
tut selling around the 21,500 
evel stunted the day's rise, 
mites Emiko Terazono in 
Pokyo. 

The Nikkei 225 average rose 
35JS to 21.50320, up 0.5 per 
■ent on the week, after a low of 
11,398.68 and a high of 21,572.41 
n the morning session on ar bi- 
rage buying. Heavy selling by 
inancial institutions count- 
ered foreign and individual 
luying. 

Volume rose to 500m shares 
ram 381m. The Topix index of 
ill first section stocks gained 
'.00 to 1,705.53 and the Nikkei 
00 1.08 to 309.63. Gainers led 
osers by 683 to 342 with 158 
inchanged and, in London, the 
SE/Nikkei 50 index rose 125 to 
399J37. 

Analysts said that a further 
ise of the market depended on 
he participation of private 
overture: a rise in individual 
avouritcs was an encouraging 
iign, but retail investors 
ended to be short-term play- 


Oki Electric Industry, the 
most active issue of the day, 
rose Y4Q to YKL5 on foreign and 
individual buying. Isuzu 
Motors also gained Y22 to 7559 
on retail support. 

Financial institutions bought 
cheap laggard car stocks, with 
Fuji Heavy Industries rising 
Y13 to 7500 and Mitsubishi 
Motors advancing 726 to 7989. 

Foreign investors picked up 
chemical and textile stocks, 
with Urdtika, a textile maker, 
up 717 to 7405 and Nippon 
Zeon, in a synthetic rubber, by 
721 to 7575. 

Nippon Telegraph and Tele- 
phone fofi 73,000 to 7845^00 
but East Japan Railway gained 

Y5.000 to Y508.000. 

In Osaka, the OSE average 
rose I72J59 to 23,783.14 in vol- 
ume of 7 2L5m shares. 

Roundup 

Mixed fortunes affected the 
region’s markets. 

HONG KONG recovered 
most of Thursday’s foil on a 
late round of bargain hunting 
and arbitrage-related buying. 

The Wang Seng index closed 
up 91.04 or 1 per cent at 
9413.96, barely changed on the 
week, in turnover up from 


HK$2J3bn to HK$3.13bn. How- 
ever, the key index did recover 
from a fall below the 9,000 level 
just after the opening, and the 
June index futures contract 
closed 210 higher at 9A*0. 

Cheung Kong lost 25 cents to 
HK$36J25, having reached a 
low of HK*35^5 earlier on fears 
that property sales would be 
affected by the government 
campaign to cool down the 
overheated property market 

SEOUL moved strongly 
ahead rm expectations that the 
North Korean nuclear crisis 
would be resolved peacefully. 

The composite Index rose 
17.46 to 918J54, up 19 per cent 
on the day and 1 per cent on 
the week. 

Turnover was Won684.05bn 
after Thursday's Won565.29bn. 

BOMBAY finished at a 26- 
month high as both domestic 
and foreign investors came 
Into the marked: on the first 
day of the new account The 
BSE index rose 102.62 or 2.4 per 
cent to 445037, hardy changed 
on the week. 

Brokers said that the rally 
was mainly led by buying tn 
Reliance Industries and Tata 
Iron and Steel the former up 
Rp6J25 at Rp397.50 and the lat- 
ter up Rp3.75 at Rp300. 


FT-ACTUARIES WORLD INDICES 


Jotafy coopaed by U» Financial TVnes Ltd, Goldman. Sacte 6 Co. and MatWaat Secuttas Ltd. In conjunction wtti the faattute at Actuaries and the Ffeeulty of Actuaries 

NATIONAL. AND 
HEGIOHAL MARKETS 
Ftguroa m parentheses 
show number of Unas 
of mock . 

Australia (69) — 

Austria (17) 

Belgium (37) 

Canada 006) — — 

Denman. (33) — - — 

ftttnd 

Franca (97) 

Germany (SB)- 

Hong Kong B6) 

Mond (14) 

ttny m 

Japan (4W).. 

Makiysia (99) 

Mexico (18) 

Nattumand £71. — 

Now lonland (14)- 

Norway (33) 

Singapore (44) 

SouUi Atrtcn (59) 

Spam [4a 

Sweden (36) -■■■■- 

SMBortand (47) — ..... 

United Kingdom pOS)..... 

USA (Sl9) 


US 

Doflar 

fades 

ow*» 

Change 

% 

— THU 
Pound 
Sterling 
Index 

RSDAYJ 

Yan 

IndOK 

UNE 18 

DM 

Index 

Load Local 
Curency % chg 
index on day 

Grew 

Dkf. 

Yield 

US 

□tear 

tadax 

Poiaid 

Startng 

Index 

Yen 

Index 

Local 

DM Currency 52 week 52 waek 
Index Index «gh Low 

Yaer 

ago 

approx) 

171.46 
_ 182.72 

167.61 

12095 

253.48 

.,.136.53 

__.162.23 

134^3 

__J8&75 

186^31 

82.31 

.._164.48 

463.71 

. 196929 
199.30 

SB.W 

... 183J1 
-84069 
__.3S3.10 

__ 13068 

—15050 
... 1B7.78 

18034 



11000 

14047 

15098 

-1.0 

3JB3 

17228 

16828 

11234 

14726 

15720 

18015 

13019 

13427 



11035 

155J32 

154J92 

-O.B 

■\sa 

16333 

17079 

11007 

15627 

155.75 

19041 

14090 

14010 



109.48 

14220 

13883 

-07 

0»7 

16051 

1B433 

10044 

14327 

13078 

17B.67 

14222 

144/44 

-IP 

122.85 

8027 

10088 

127J» 

-04 

2.67 

12721 

124.06 

8222 

10015 

12720 

14031 

121.46 

127.75 

-0-5 

24724 

16057 

89.17 

21006 

11083 

22002 

15720 

-08 

00 

134 

083 

255-48 

13056 

24016 

1301B 

16524 

8069 

21722 

11011 

22021 

157.1B 

27079 

15072 

20728 

8524 

21327 

8018 


15824 

10547 

137.64 

141.71 

-\2 

3.1 B 

16324 

159MB 

10048 

13SL38 

14042 

16527 

14060 

15051 



87.68 

11088 

11088 

-05 

132 

134.67 

13134 

87-47 

114.50 

11420 

14727 

10729 

11128 



24087 

31206 

MAM 

-1.8 

324 

374.78 

36052 

24043 

31826 

37128 

50626 

27122 

237-52 



121 JM 

15722 

17028 

-03 

347 

18830 

18129 

12121 

15040 

175.75 

20033 

15523 

15923 


8028 

53.78 

6083 

nasw 

-Z& 

1.63 

8435 

82.75 

5011 

72.14 

10028 

97.78 

5728 

6520 



107.42 

13053 

107.42 

0.0 

071 

16538 

16137 

107.40 

14020 

107 >50 

16034 

124.54 

140S3 

oj> 


31096 

41038 

484X7 

01 

1.68 

483.64 

47127 

314.13 

411^1 

46064 

62123 

312-51 

342.77 


128032 


7239.86 

-02 

1.08 

1973.18 

192434 

1281^8 

167725 

725029 

2B47JJ8 

1407.64 

1471.40 



13061 

16052 

1B&75 

-08 

041 

201^1 

16CL42 

13022 

17125 

16032 

207.43 

16422 

167.70 



4010 

5066 


02 

084 

8073 

67.03 

4424 

5044 

82.17 

7758 

48-80 

49.18 



11067 

15044 

17037 

-13 

1.87 

185.43 

16024 

12044 

15726 

17823 

20042 

16021 

15304 



22054 

28005 

240 7^ 

03 

1J5 

34005 

331.(53 

22086 

28012 

24007 

37092 

242.48 

250 At 


27014 

164.32 

24019 

294.86 

08 

014 

27824 

27222 

18126 

23727 

29226 

28010 

17093 

19392 



8067 

117.64 

14131 

-2.1 

437 

142.09 

13057 

aaa 

12081 

14421 

155.79 

11033 

12005 


20001 

137^6 

17019 

24061 

-1J 

1.63 

214.79 

209146 

13051 

18223 

24072 

231-35 

16325 

17428 



104.24 

13039 

13089 

-12 

1.79 

16135 

15728 

10420 

137.18 

13728 

17068 

12446 

12527 


18014 

122M 

15030 

18014 

-08 

4.10 

18093 

18438 

122.71 

18064 

18026 

21496 

17032 

17009 

03 

18070 

12002 

15079 

18034 

03 

225 

187.7B 

18013 

12126 

ISO AC 

187.78 

19624 

17895 

182.75 


EUROPE (719) 

Nordic (115) — 

Pacific Basin (75£0 

Euro- Pacific (1468) 

Norm America (6251 

Einopo Ex. UK (514) 

Pacific Ex Japan (281) — 

World Ex. US (1652) 

World E*. UK (1966) — . 

World Ex. Sri Al. pi 131- 
World Ex Japan (1703) - 

The World Index PI 7 II - 

Cup*»k*i. TKo Rrervad Threa u masAgaMjW 
lm dm m iwr 4 W Mr «*• 


163.40 

-09 

201.73 

-12 

__ 171.83 

-08 

...... 16022 

-07 

184.47 

02 

14088 

-1.1 

24085 

-08 

18922 

-07 

17025 

-03 

17328 

-04 

182.18 

-02 

— . 174.55 

-03 


15*38 

190.78 

167.70 
184.08 
178.03 
143.07 
240.77 
105,06 
10359 
169.60 

177.70 


106.73 

131.77 

11231 

10058 

12050 

3551 

181-24 

11054 

113.17 

11358 

11000 


13823 

15192 

-19 

ana 

16494 

16088 

107.13 

14024 

162.78 

178.58 

14128 

14493 

171.14 

20225 

-1.1 

1.48 

204.17 

18011 

13291 

17326 

20013 

22020 

155 22 

16323 

14527 

11822 

-01 

123 

17295 

16827 

11233 

14725 

11724 

173.73 

134.79 

15239 

142.72 

13126 

-05 

127 

16045 

16S2B 

11008 

14427 

13125 

T7078 

14198 

14093 

15051 

184.15 

03 

224 

18422 

17047 

11992 

15046 

18068 

192.73 

1762? 

17834 

124.44 

132.03 

-12 

048 

14894 

144.87 

6635 

12012 

13398 

15747 

12237 

12494 

20043 

222.18 

-08 

227 

24897 

242.72 

16125 

21120 

22395 

29691 

18238 

19055 

14327 

13495 

-04 

198 

17040 

1601B 

11088 

14428 

13493 

17221 

14294 

14946 

14899 

14792 

-01 

293 

17320 

169/49 

11228 

147.77 

14010 

17528 

15022 

15002 

14722 

15014 

-02 

223 

17491 

17019 

11325 

14037 

16042 

17826 

15620 

15049 

15428 

17599 

-02 

290 

18294 

17012 

11082 

15529 

17043 

19520 

185.72 

16740 


17028 114.02 14&06 15151 -02 223 179,15 17082 113.76 14852 151.47 17097 155l17 15062 


LIFFE EQUITY OPTIONS 


MSGS AND FALLS 


TAIPEI turned cautious after 
its recent volatility, the 
weighted index rising 1010 to 
6,159.74, up 2.7 per cent on the 
week, as turnover fell to 
T$68.6bn from Thursday’s 

T*96.04bm 

Selected banking stocks with 
high profit expectations 
attracted buying; China Trust, 
the day’s second most active 
issue, rose TSL50 to TS72. 

MANILA was depressed by a 
sharp drop In PLOT after ana- 
lysts lowered their earnings 
forecasts. The telephone 
group's shares lost 3.6 per cent 
to 1,735 pesos, pulling the com- 
posite index down 33.73 to 
2J382J33. 

The newly listed Megaworld 
Properties bucked the trend, 
rising 1.85 per cent to 5.50 
pesos. The debuts of the ship- 
ping group, Negros Navigation, 
and the ice cream company, 
Selecta, were expected to give 
the market further incentive 
next week. 

Turnover was 707.9m pesos. 

SYDNEY retreated slightly 
as activity was undermined by 
the continued weakness in the 
bond market. The All Ordi- 
naries index fell 48 to 2,051-2, 
in turnover of A*4724&n, off 0.8 
per cent on the week. 




__ 

(Ms 


— 

Puts 


Option 


M 

Oct 

Jan 

Jte 

Oct 

Jan 

NMiiem 

5«0 

3GM 

51% 

- 

7 

18 

_ 

rS87 ) 

589 

urn 

2554 

— 

31 

40% 

— 

*0|fl 

240 

vm 

22 

27 

9 

14% 

19% 

r29T) 

200 

4 

13 

18 

22% 

26% 

31% 

ASM 

50 

m 

8% 

itr% 

1% 

4 

4% 

rssj 

60 

2 

4 

8 

0% 

10 

10% 

BrOMmafa 

390 

16 

»: 

3554 

14 

23% 

29% 

nos i 

420 

5H 

77 

a 

35 

4154 

47 

MIMA 

390 

38 

m 

54 

5 

13% 

22 

("418 ) 

420 

16 

28% 37% 

16% 

28 

35% 

Boot 

500 

X 

491 

*54 

a 

14% 21% 

rasj 

550 

7 

a 

31 

31 

X 

47 

BP 

390 

a 

40 • 

16% 

5 

13% 

10 

roo) 

420 

12 

23% 

31 

10 

27% 

32% 


130 

8 

13% 

16% 

554 

9% 

T1% 

n»3) 

140 

4 

9 

12 

11% 

15 

17 

Bare 

500 

28% 4254 51 W 

11 

20% 

33 

ma) 

550 

7» 

IS 

28 

43% 

49% 

83% 

Ofallta 

425 

19% 

_ 


14% 

_ 

_ 

P433 ) 

450 

754 

— 

— 

X 

— 

- 

Qmadds 

500 

21 

3M< 


12: 

25%: 

32% 

rsraj 

550 

4 

1554*454 

a 

57 

8254 

CBw (x*»» 

500 

a 

44% 

53 

0% 

18% 

25 

rsa) 

550 

9 

n : 

26% 

32% 

48 

51% 

Ha 

750 

31% 

48 

62 

15 

34 

43 

(VBT ) 

000 

9% 

a: 

39% 

40 

04% 

7154 

Hogfatar 

500 

84% 

34% 

47 

15 

298 

3S» 

rau» 

SSO 

at 

19 

a 

SZ 

58 

85 

Lend Saar 

600 

a 

42 49% 

0 

is: 

22% 

reie j 

650 

5% 

w%: 

2454 

39% 

43 

49 

Marts 4 S 

390 

27 

3754 4454 

4 

0% 

14 

r4ioj 

420 

954 

a: 

2854 

1754 

a: 

27% 

NAM 

400 

2154 

38 4854 

10% 

23 : 

27% 

("471 J 

500 

6% 

17% 

a 

34 

455450% 

Steamy 

390 

31 

44 

52 

S54 

14%: 

20% 

T415) 

420 

14 

a: 

3554 

18% 

27 

34 

aw Tram. 

700 

2 

a 

45 

15 

29% 

3454 

rwsi 

750 

4H 

1454 2354 

4754 00% 

64 

Star done 

200 

18K; 

23% 27% 

4 

8 

11% 

P214) 

220 

8% 

m 

17 

14% 

18% 

22 

TMHgar 

79 

054 

_ 

- 

3% 

_ 

- 

(*8S) 

88 

4H 

— 

— 

7% 

— 

— 

UAmr 

1000 2614 54% 

70 

23 

35 ■ 

43% 

non) 

1050 

9 

si 

47 

59i 

54% 

71 

Zaaece 

700 

4244 : 

57% 79% 

8 : 

21% 

31 

(TO) 

re) 

13% 

3054 

45 

32; 

50% 

57 

Option 


Ana 

■H 

M 

*2_ 

Ifar 

Fab 

Great Mot 

420 

is: 

29% 35% 

19 

27 : 

33% 

reo> 

460 

4' 

14% 20% 

49)4 

54 

X 

Lartnhe 

100 

IS 

17% 

a 

9 

1354 

18% 

neo) 

190 

4% 

9% 

14 

23% 

27 

a 

inBsn 

300 

38% 

38 42% 

4 ' 

11% 1 

14% 

ru2 j 

330 

12%: 

22% 20% 

17 

271 

29% 

QWre 


as 

Dec 1 

Ifar 

Sap 

Dec 

Mar 

Ham 

IX 

19 

23 2554 

7 

11% 

14 

H39) 

140 

13% 

17 20% 

12 

16% 

IB 

Option 


*ra 

ter 

Fee 

Aug 

Nov 

Fra 


480 31* 5Z% 65% 24% 43 51 
500 1514 39 48% 48% GO 74 
360 28% 38 45% 13 21 24 
420 12% 22 3814 31 37% 41 


M Am 
r<84j 
BAT ink 
r«5) 


BTR 3GQ17H28U 34 11 19U 23H 

fans } 390 6 13 HW 29S4 3756 40H 

UTfem 360 IfflfcEK 20K 12 18 24H 
C371 ) 390 5 12 IBM 33 37 43 

Cadxn&b <20 *1 40K SO EH 15 17H 
rm ) AGO 9 21 27H 27H 37 39 

Extern Bac 5SD S»W»71M 1ZJ4 M 32 
(-S93 ) 600 1M 38 W 38 4BH 57K 

tomm 420 48 S3 5* 4 8 14 

P459 ) 480 15 a as 15 S 2B» 

GEC 280 21 2SHr 30 6 tl MM 

C297 ) 300 7»15«K17tt22 25 




„ 

Mb 

_ 

Pols 

__ 

Option 


Ang 

Hot FA 

Aug 

Hot 

Feb 

Hntson 

HO 

17% 

22% 25% 

4 

9 

12% 

rzsi > 

250 

8% 

12% 15% 

13% 

19 

22% 

Learn 

134 

X 

24 - 

3% 

7 

a. 

H4B) 

154 

7 

13 - 

12 

18 

- 

Lima Ms 

IX 

21 

25% 2B 

3 

B% 

11% 

(175) 

IX 

8 

15 17% 

10 

IBM 

22 

PS 0 

GOO 

45 

59 69% 

13 

28% 

34% 

{•B2B) 

660 

17% 

33% 48 

X 

56% 

82 

pwuom 

160 

18 

23% 27 

4% 

a 

11% 

n») 

IX 

7 

12% 18% 

15 

18 

22 

nawia 

280 

24% 

31 35% 

5% 

12% 

14 

(*296) 

300 

12 

19 25% 

13% 

22% 

24 

BIZ 

BS0 

37% 

a a 

24% 

45% 

52 

rasa) 

900 

15% 

38 55% 

55 

73% 

79% 

Hatred 

460 

X 

4S% 51 

13 

25% 

30% 

1*475) 

500 

12 

a 32 

34% 

48% 

54 

Hay* knee 

240 

24% 

32 38% 

5 

14 

15 

rzsj 

2B0 

12% 

21% 26% 

14 

24 

25 

Tascu 

220 

T7% 

23 26% 

6 

12 

15 

(*229 ) 

240 

7 

11% 18% 

15 

23: 

25% 

Vodatono 

500 

25 

44% 52 

21 

32 

41 

rsoB i 

550 

7 

23 31 

55 l 

63% 

70% 

WR ns 

325 

31 

38% - 

4 

10% 

_ 

PHB) 

35* 

12%: 

- 

15% 

24 

- 

Optica 


M 

Oct Jsa 

Jd 

Oct 

J* 

BAA 

900 

43% 

89 78% 

14: 

25% 

35 

rs») 

950 

10% 

»% 52% 

39% 

52 

00 

Thames M- 

460 

13% 

25 29% 

10: 

25% . 

34% 

(*470 ) 

500 

3 

10% IS 

30 

54 > 

BOH 

Option 


sra 

Dae ter 

Sap 

Dee 

ter 

Abbey tea 

420 

23 : 

31% 38% 

22 

27 34% 

r«t ) 

480 

m 

15% 22% 48% 

53 

60 

Arete* 

X 

6 

8 7 

3 

4% 

5 

<*31 ) 

35 

2 

4 5 

5% 

7 

8 

Urefafa 

550 

34%. 

«% 57: 

25% 

32 

42 

(*560 ) 

600 

13% 

2 4 35! 

57% 1 

52% 

71 

Hub CMe 

250 

X: 

30% 85% 

11% 

1B% 

18% 

(*270 ) 

250 

14% 

21 a 

23 ! 

27% 

a 

MBA Gas 

200 

18 

22 24% 

10 

16% 

18% 

n®3) 

280 

9 

13% 15% 

21 

a 

31 

IWww* 

IX 

w : 

23% 27 

11% 

14% ' 

17% 

nsaj 

200 

9 

15 18% 

X 25%: 

28% 

MKdcan 

IX 

13 

IBM 19% 

9% 

11% 

13 

n«n 

180 

5 

8 12 

24 

35 

28 

Iml 11 

120 

14% 

19%2Z% 

/ 

11 

13% 

(*128 ) 

IX 

9 

15 17% 

12% 

16 

19 

IM Power 

420 

32% 

41 49% 

17% 

24 : 

28% 

r«9) 

460 

13% 

23 31 

40 

47 

51 

Scm Power 

330 

30% 

43 48% 

11% 

18 

IB 

(*359 ) 

380 

19% 23% XK 

25 29% 

33 

Seas 

110 

13% 

15% 17% 

4 

5 

6% 

ni7> 

120 

7 

9% 12 

0 

11 ■ 

11% 

Rata 

220 

24 

Z7 81% 

9 

13 ' 

15% 

1-230) 

240 

13% 

17 22 

18 

24 28% 

Tnoe 

130 

IB 

19 22% 

7% 

12 

14 

H3S) 

140 

T1 

14 17 

13 

17% ' 

19% 

Thorn Qfl 

1050 

54 

77 91 

X 

74 

88 

n®8) 

1100 

32% ! 

56% 70% 

92 

107 

119 

188 

220 

w: 

»% 24 

14 

15% 

19% 

r223 ) 

240 

7 

13 15% 

27 

28 

31 

Toalte 

220 

22 

27 30% 

9 12% 15% 

r233 ) 

240 

n% 

17 21 20% 23% 25% 

IMcmne 

EDO 

4450% 73 38% 48% 

58 

rsw ) 

050 

22 

X 51% 

67 77% B5K 

Optra 


Jd 

Oct JM 

Jd 

Oct 

Jaa 

Sue 

5S0 

440% 88 

11 

X 

43 

CS7B 1 

600 

15% 33% 44% 35% 

82 70% 

KSCffipte 

700 

39% 

M 93% 28% 53% 

88 

r/os) 

750 

17% 

44 61% 68% 

82 

94 

ream 

482: 

21%i 

14% - 

14 26% 

- 

r«) 

475 

14% : 

28% - 

21 31% 

- 

OptiHI 


Mg 

Her FHi , 

fag 1 

tor 

Fab 

Ms-Asm 

IX 1 

14% 

22 25% 

7 

12 15% 

P185 1 

200 

s 

13 16% 

19 

25 27% 


■ Unowlytig Mourty prtGO. Pimixiu ahowi an 
bared on ctoohg oBar pnow. 

Jana 17, T<M UMatec 35J6 B CWe 11827 
PUK 22,142 


FT GOLD MINES INDEX 


18 


«dg ad Jre Vrer 
mem is m <90 


Gmredhr 

*Md% 



vl 

On Friday 

Fate 

Seme 

II 

an the week 
fate 

8mm 

British Funds 

32 

26 

14 

123 

195 

42 

Other Fixed Intoest 

3 

0 

12 

a 

19 

48 

Mnerd Extraction 

83 

37 

BO 

2B1 

318 

401 

General Manufactumra 

118 

156 

386 

440 

915 

1.949 

Consumer Goods 

28 

68 

96 

139 

280 

557 

Services 

85 

116 

307 

344 

570 

1,630 

UlHlIes 

13 

24 

9 

65 

114 

51 

FtnencMs 

90 

90 

193 

374 

524 

967 

Investment Trusts 

HB 

74 

330 

271 

542 

1.537 

Others 

59 

34 

39 

220 

243 

205 

Totfas 

677 

625 

1(465 

2J2B5 

3.700 

7,388 


Dam baaed an thoaa comporloa load m tho Lnkn Shan Barries. 

TRADmONAL OPTIONS 


CbMk Arson k A, Border TV, Borland, BradMock, Brawn ft Jac k ., QBE ML. HTV, 
Mn mrt. ftamn Rm, Ovoca Rn, Scott. TV, Tadmo Mag. Tidkw 09 PKk Arson 
ML. Ovoca Rwx, TuRow OU PKs A CoAc QBE ML. Cisco, HBtodOwn, SrnBMGL 
BeedL A. TdBow OR. 


LONDON RECENT ISSUES; EQUITIES 


Issue 

Amt 

Mkt 



CJooo 





price paid 

cap 

1994 

price 


Net 

Dfv. Qa 

P/E 

P 


Pmj 

ugh i 

Low Stock 

P 

+ 1 ■ 

(fir. 

cor. ytd 

net 

§120 

FJ*. 

99.7 

123 115*3 Aero. Hambia 

122 


W3-74 

2-6 16 

121 

161 

FP. 

46,1 

186 

IX Army 

IX 


LN1.08 

08 54 

203 

255 

FJ». 

148.0 

267 

256 Argent 

266 


- 

- 

- 

IX 

FP. 

433 

IX 

IX Automorhre Precs 

IX 


LN4.0 

0.8 *J 

353 

100 

FP. 

SIP 

IX 

IX BeSe Gffrd Shn C 

IX 


- 

- re 

re 

§150 

FP. 

303 

154 

IX Bnwrin Dorprtn 

IX 


L5u8 

23 43 

11.1 

- 

F.P. 

2075 

81 

X CAMAS 

X 

-5 

1*075 

a7 6.9 


re 

FP. 

1059 

112 

107 as 

107 



- - 

- 

§143 

FP. 

125 

170 

143 Camel 

170 


W33 

- 23 

113 

- 

FP. 

100 

36 

34 Ote» Comma. 

34 

-1 

- 

- - 

- 

IX 

FP. 

473 

143 

133 Danby 

143 

+6 

W3.1 

23 2.7 

133 

- 

FP. 

77.7 

93 

X Ftemtog Man 

Kfl2 

+*2 

-• 

- 

- 

- 

FP. 

790 

X 

42 Do Warrants 

47 


- 

- - 

- 

225 

FP. 

1003 

233 

225 intennedato 

232 


IN0B 

21 53 

01 

re 

FP. 

- 

77 

X JF H Japan Wrta 

78 

*3 


- - 

- 

5 

FP. 

420 

6* 

5 Keys Food 

5J* 


- 

- - 


200 

FP. 

164.1 

233 

200 $lxndon Chiba 

232 


W11J2 

13 64 

113 

105 

FP. 

443 

113 

X MgMMWt 

X 

-1 

FO-38 

23 43 

129 

ia 

FP. 

34.7 

IX 125h Honor 

129 


W4-56 

25 44 

113 

re 

FP. 

2X3 

131 

118 tedrmr 

118 

-1 

WN2.7 

25 23 

153 


FP. 

45.1 

92 

X Seuddsr Late 

X 


- 

- - 

- 

- 

FP. 

6.16 

44 

43 Do Wrta 

44 


- 

- - 

re 

IX 

FP. 

243 

X 

X Shliea HY Sntfr C 

99 


- 

- - 

- 

§95 

FP. 

14.1 

113 

IX Spergo Cora 

113 


L1J8 

1.6 1.6 

443 


FP. 

583 

TX 

90 TH Eiao Gate C 

X 


re 

- - 

- 

IX 

FP. 

743 

IX 

92 TR Plop far C 

93h tlv 

re 

- - 

- 

SIX 

FP. 

45.4 

iao 

IX UPF 

120 


W3.B7 

27 33 

103 

RIGHTS OFFERS 







heue 

Amount l.itfiwt 





Closing -tor- 

(Mite 

poM 

1 Rerun. 

1994 




price 


P 


date 

HJgti Low Stock 




P 


IX 

M 


_ 

6pm Spm Bitten 




Spm 


2 

m 

23/7 

4pm 1*2pm ifCwp. Sentces 



1>2pm 

->2 

180 

m 

20/7 

23pm 3pm D ..m Motors 



Spm 


265 

m 


- 

85pm 13pm Euronmd 



13pm 

-10 

425 

to 


- 

36pm 10pm Erens Hdshaur 



18pm 


706 

m 

207 

2pm 1pm H&ga 8 Hi 



1pm 


230 

Ml 


- 

34pm 19pm Jario Porter 



19pm 


205 

N> 

ia/7 

28pm 7pm McAipfea (A) 



7pm 

-4 

IX 

W 

257 

Ilian 2<2ptn HEM 




2 1 zpm 


5 

m 

21/7 

9pm 7pm Standard Plot 



7pm 


34 

PS 


- 

12pm 10pm UnR 




12pm 


250 

N5 

27/7 

33pm 20pm W-asss* 




20pm 

-2 

73 

Ni 

5/8 

3pm 1 1 zprn Wulta City of Lon 


1**pm 



FINANCIAL HIES EQUITY INDICES 

Juno 17 Acre 16 Juna 15 Jiaw 14 June IS Vr ago *Hoh *Low 


Ordbwy Share 

23733 

2383.4 

23809 

23973 

23805 

22523 

Z7133 

2321.2 

OnL dhr. yield 

436 

434 

421 

422 

434 

411 

432 

3.43 

Earn. yW. 96 fun 

073 

070 

068 

537 

539 

437 

076 

332 

P/E ratio n« 

1834 

1073 

1088 

1082 

1075 


33.43 

1059 

P/E ratio id 

1031 

1040 

1053 

1051 

1044 

24.45 

3030 

1018 

•For 1994. Ontoy Share hdn fan comptaHom 271S3 S/02/34; law 404 26W40 

FT Ordriny Share fan m dare vme. 



^ Or te ray Share hourty changes 


MteabteKQ 1*WU3 -*Q3 MSU3 19S25B 17B4JB 


Mtfca (16) 


Sa4a am Go. aid NMM SaeuAfaa UntaL 1867 


M»H ! 448 2761.47 2805.44 220X71 
262003 -05 264183 2BZ&50 169588 
MMi AniBka pi) 180106 -1.5 1827^7160185158118 

l— « prtcu sera uaiiaMii far Ufa nttm CONSTITUENT CHANOE WITH EFFECT 2MW4; 
AOCKIHM Sana Fa Poctfe 0*1 Cap, fariin *nwta3 


213 

2367^0 152286 

2381 £ 23908 23801 2387.2 23805 23844 23844 23704 23809 23994 2367.0 

457 

344080 190223 


Jim 17 

June Ifi 

Jn 15 

Jim 14 

Jim 13 

Yrago 

1JB 

070 

301380 1093.18 
2039.05 136380 

SEMI twgnhfa 

Equity tumowr Rn4t 

31407 

24462 

13734 

22£83 

15614 

23,141 

1562-2 

22439 

9405 

34,637 

14202 


Shares (rated (ndjf 
f Bfaufaip MsnfataH cuanaas and i 


5101 8106 


25.156 

534.6 


24854 30401 

373.6 6100 






22 




















































FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 

















































24 



H RMMH08S 

.[:**•• ;w_ 

IwuSmoeE^mmAmu^Ss 


081 6892266 


FINANCIAL TIMES 

Weekend June 18/June 19 1994 


_ A WORUtLLAnm 

BOWEND INPIlOTWiRiVPHk: 

LiGifTINli 

■ NlIUNAIIONM 



Mitsubishi’s non-performing 
loans double under US rules 


By Gerard Baker in Tokyo 

evidence of the damage inflicted 
on Japanese banks by bad loans 
emerged yesterday when Mitsubi- 
shi Bank disclosed that its non- 
performing loans - calculated by 
US accounting standards - were 
almost double the amount dis- 
closed in Japan. 

Mitsubishi, one of the 11 matn 
commercial Japanese banks, is 
listed on the New York Stock 
Exchange where it is required to 
file accounts to conform with 
Securities and Exchange Com- 
mission criteria. It reported bad 
loans of Yl,i50hn (£7J3bn) for the 
year ended March 31, against a 
figure of Y572bn yen in its Japa- 
nese accounts last month. 

In the late 1980s, the so-called 
“bubble era”, Japanese banks 


provided vast sums to companies, 
many of which indulged in specu- 
lative property and stock invest- 
ment that cost them dearly when 
prices collapsed and the economy 
contracted. 

Under Japanese rules, banks 
count as non-performing only 
loans to bankrupt nrnnpavrifts and 
to those with interest in arrears 
for six months or more. US 
accounting practice requires 
banks to disclose the amount of 
restructured loans, on which 
Interest payments are reduced in 
order to keep borrowers afloat 

Japanese banks have been 
forced to restructure loans to 
many troubled clients, but the 
extent of the damage bag been 
undear. Mitsubishi disclosed that 
its restructured loans jumped by 
182 per cent overall in the year. 


while its restructured loans to 
businesses in Japan rose 272 per 
cent According to its Japanese 
accounts, total problem loans 
rose by 14 per cent over the same 
period. 

Mitsubishi is generally 
regarded as one of the strongest 
of the Japanese banks. Its nan- 
performing loans declared in 
Japan represent L8 per cent of 
total loans, against a sector aver- 
age of 3.8 per cent The US 
results show that figure to be 
closer to 4 per cent and if other 
h anks * r estr u c ture d loans are in 
the range as Mitsubishi’s, 
some may have non-performing 
loans representing 13 per cent of 
their loan book. 

Another sign of the difficulties 
of Japanese temka came yester- 
day when bank officials 


suggested that the annual wage 

•fnnrpacp at the IX ra»n ra mmp r- 

dal banks might be the lowest on 
record. 

Employers have offered a pay 
rise of just 0.7 per cent in 
response to union demands for a 
1.5 per cent increase, and the 
final figure is likely to be closer 
to the employers* offer. 

Japanese accounting proce- 
dures have been widely criticised 
for not giving a true picture of 
hank balance sheets, and inves- 
tors have bad to guess at the 
likely total of non-performing 
ir^ng in Mitsubishi's case, the 
most pessimistic independent 
estimate - by Salomon Brothers, 
the US securities bouse - put the 
probable figure around Y74Dbn, 
well below the new figures 
released. 


Ruling may force Italy to raise taxes 


by Robert Graham In Rome 

Italy’s Berlusconi government 
indicated yesterday that it would 
be prepared to break a campaign 
promise and raise taxes to cope 
with a constitutional court deci- 
sion ordering the payment of 
L30,000bn (£12.3bn) in pension 
arrears. 

In advance of a cabinet meet- 
ing late yesterday, officials said 
the government would adopt a 
twin-track approach. The pre- 
ferred option was to suspend 

im plrnimtati nn of the COUTt deci- 
sion and stretch payments over a 
period of years. 

If that proved legally impossi- 
ble, though, the government 
would impose a one-off M constitu- 
tional court tax", so named to 
underline that the court’s deci- 


sion was b ehind the tax increase. 
During bis election campaign, Mr 
Silvio Berlusconi promised to cut 
taxes. 

Fbars that the pension pay- 
ment would breach the 1994 bud- 
get guidelines and push the pub- 
lic-sector deficit back above 10 
per cent of GDP caused sharp 

faTlc this Week OH the Milan 

bourse and in the bond markeL 
Matters were made worse by the 
government's delay in clarifying 
the precise cost of the court deci- 
sion. 

The uncertainty has also 
affected the lira, which closed 
against the D-Mark yesterday at 
L983, compared to L958 when Mr 
Berlusconi was named premier a 
month ago. 

Lawyers have raised doubts 
about suspending or not fully 


mi pTam anting - the COUTt derisi on. 

The court itself says it would be 
difficult for parliament to 
endorse any measure that sought 
bo bypass its authority. 

Mr Giancarlo Pagliarini, the 
budget minister, made clear on 
Thursday that, if the arrears 
have to be paid in foil, the 1994 
budget deficit would still be held 
down to the target of L154,000bn. 
That would mean either postpon- 
ing payment until the 1995 bud- 
get or immediately introducing a 
special tax. 

On Thursday evening, union 
leaders reacted angrily to a gov- 
ernment decision to impose the 
one-off tax on pensioners who 
would benefit from the arrears 
payments. They threatened 
immediate action if that were to 
happen and the government 


)nd prices and dollar hit 
fears of rising inflation 

r Cnrrkran. Graham after closing in Trfindnn at hiehlv volatile due to thii 


retracted the proposal, indicating 
that the cost would be spread 
evenly. 

The unions also protested that 
the government had long been 
aware of the court’s impending 
decision and of its likely impac t 
an the budget 

Whatever approach the govern- 
ment adopts, market analysts 
said the government needs to 
produce broad outlines for its 
1995 budget strategy as soon as 
possible. 

Even without the burden of the 
pension arrears, government crit- 
ics have suggested this week that 
its first measures - unfreezing 
public works contracts and 
introducing tax breaks for new 
investments and job creation - 
will add to the 1994 budget defi- 
cit 


By Tracy Corrigan, (fraham 
Bowtey and Motoko Rich 

Government bonds slid yesterday 
while the dollar fluctuated 
sharply, as markets were 
haunted by fears of rising infla- 
tion and interest rates and large 
budget deficits. 

Political uncertainty after the 
European elections reinforced the 
bearish sentiment present that 
has dogged the markets «in«» the 
start of tire year. During the 
week, German, French and Ital- 
ian bond prices hit lows for the 
year. 

Meanwhile, US Treasuries were 
bruised by a falling dollar, clim- 
bing commodity prices and data 
showing a rise in consumer confi- 
dence, all of which fuelled tears 
of further rises in US interest 
rates. 

In late trading in Europe, the 
dollar fell sharply against the 
D-Mark. Within the space of half 
an hour, the dollar lost two pfen- 
nigs in New York trading 


after closing in London at 
DML6299. 

Nervous markets reacted badly 
to a report that the Conference 
Board, an independent think 
tank in New York, had said the 
dollar might fan 10 per cent 
against the D-Mark over the next 
18 months. 

The US bond market outper- 
formed European markets last 
week, as German bond prices fell 
3 points, forcing 10-year German 
yields above CJS Treasuries for 
the first time since last Novem- 
ber. The 10-year German Treu- 
band yield ended the week at 7.14 
per cent, higher than the 10-year 
Treasury at 7.12 per cent 

Ms Marie Owens-Thomsen, 
international strategist at Mid- 
land Global Markets, said yields 
cm German bonds mi g h t rise by 
another 50 basis points, com- 
pared with short-term interest 
rates, suggesting that European 
markets will continue to under- 
perform the US. 

Government bond prices are 


highly volatile, due to thin trad- 
ing volume. Large buy or sell 
orders - or even rumours of liq- 
uidations - are causing sharp 
price movements, and there 
seems little hope of any immedi- 
ate improvement in sentiment. 

“Institutions generally don't 
like to buy falling markets,” said 
Mr Phillip Saunders, fixed inter- 
est investment director at Guin- 
ness Flight. “Indeed, with the end 
of the quarter in sight some peo- 
ple are throwing in the towel” 
and sell bonds. 

Italian bonds posted the worst 
losses last week, as concerns 
about the new government’s han- 
dling of the budget deficit 
mounted. 

The difference between Italian 
and German 10-year bond yields, 
which reflects the differing 
degree of investor confidence in 
the two markets, widened to 388 
basis paints on Friday from 810 a 
week earlier. 

Currencies, Page 13 


US policy 
clash over 
N Korea 

Continued from Page 1 

activation of joint North 
Korean-US search teams to look 
for the remains of US soldiers 
killed in the 195083 Korean war. 

Although yesterday's talks 
may ease tensions on the Korean 
peninsula, they did not directly 
address the issue of full nuclear 
inspections that lies at the heart 
of the .15-month dispute. 

The IAEA wants to examine 
the nuclear facilities to deter- 
mine whether plutonium was 
diverted in 1989 to build atomic 
bombs. North Korea has blocked 
IAEA access to two suspected 
nuclear waste dumps and threat- 
ened to withdraw from the NPT. 
It may ha ve destroyed evidence 
of activity by withdrawing spent 
fuel rods from the reactor with- 
out allowing the IAEA to analyse 
them 

Mr Kim told Mr Carter he 
would allow foil inspections if 
the US granted di pl o m a tic recog- 
nition and economic aid. 


FT WEATHER GUIDE 


Europe today 

A frontal zone, which forms the boundary 
between cod and changeable conditions In 
northern Europe and warm air over southern 
Europe, wni stretch across the British hales, 
the Low Countries, northern Germany, and 
Poland. These regions will be mostly cloudy, 
and there will be outbreaks of rain, especially 

ovbt Scotland, Denmark and northern 
Germany. Southern Norway and Sweden will 
also have rain, followed by scatt e red 
showers, Further south, it wffl be sunny and 
quite warm, especially over Spain. Low 

pressure will hang over southern France and 

trigger localized heavy thunder storms. Italy 
and Greece wiB have widespread sunshine 
and temperatures win be between JfiC and 
30C in most places. 

Five-day forecast 

The Mediterranean win stay sunny, although 
during the weekend, Italy will have a few 
thunder storms. Western Europe wffl be 

mainly influenced by a ridge of Mgft pressure, 
which should bring sunny spells and near 
normal temperatures. Northern Europe wflJ 
remain relatively cod and unsettled over the 
weekend and this will be followed by a 
gradual warming trend next week. 


TODAY'S TEMPERATURES 

Mmlrmmj Beijing 
CdakB Belfast 
Abu Dhabi gun 40 

A ccra fay 29 

Nrfora an 34 Bermuda 

Amsterdam cloudy 20 Bogota 

A thena am 30 Bombay 

Anris thund 3i Brands 

8 . Abes ram 17 Budapest 

fJwjn cloudy 21 Ctogen 

Bangkok doudy 34 Cairo 

Bwwlona sun 27 Cape Town 



SHuaSonat 12 GMT.Tampmtwm maximum for day. forecasts by M*ao Cerau* of the AMtorftnds 


tun 

35 

Caracas 

doudy 

25 

Fan 

atom 

17 

Cratfiff 

doudy 

19 

Frankfurt 

Mr 

29 

fVwpMgnrw 

sun 

24 

Geneva 

ahewrar 

22 

Chicago 

thund 

32 

Gibraltar 

Mr 

29 

Cohan 

far 

20 

Glasgow 

Mr 

19 

Dakar 

fair 

28 

Kamhuig 

rain 

32 

Dates 

fair 

35 

HeMnM 

Hr 

25 

oeffW 

sun 

42 

Hong Kong 

Mr 

27 

Dubai 

sun 

41 

HonoMu 

rah 

15 

Diifti 

doudy 

19 

Istanbul 

sun 

34 

Dtorovrde 

SUI 

28 

Jakarta 

Mr 

15 

EtSnbugh 

rain 

18 

Jersey 


«U1 

far 



Lufthansa 


German Airlines 


Karachi 
Kuwait 
L Angeles 
Lbs Palmes 
Lfcna 
Lisbon 
London 
Li&bourg 
Lyen 
Madeira 


sun 
ram 
shower 
Mr 
dwwar 
fefr 
sun 
Hand 
fair 
ctoudy 
sun 
. swi 
sun 
doudy 
sun 
Mr 
Mr 
shower 


23 M«frid 
29 Majorca 
29 Malta 

28 M a nchester 
IS Manfia 

IS MShgiTW 

IS Mexico City 

29 Mami 
31 Wen 
28 Mo n treal 
31 Moscow 
17 Murleh 
36 Nairobi 
42 Naples 
25 - Nassau 
£5 New York 
20 Nee 

23 Mcosia 

25 Oslo 

26 Praia 
31 Perth 
23 Prague 


sun 

fair 

swi 

doudy 

doudy 

nk\ 

Mr 

Mr 

srai 

doudy 

fab- 

Mr 

doudy 

am 

Mr 

fair 

Mr 

BUI 

shower 

fair 

doudy 

doudy 


31 Rangoon 

30 Rsykjavfc 

29 Ho 
18 Rome 
33 S. Fraco 
17 Seoul 

20 Singapore 

31 Stockholm 

30 Straaboug 
30 - ‘ 

16 

27 Tel j 

24 Tokyo 

29 Toronto 

32 VraKOuw 

33 Verica 

25 Vienna 

30 Warsaw 

15 Washington 
30 Weflington 
IB Winnipeg 
2fi Zuich 


doudy 

shower 


30 

11 


t* 24 
sun 28 
Mr 21 
fair 26 
Hand 32 
Mr 20 
•Mr 30 
fair 17 
sui 22 
SU1 

Mr 
Mr 30 
doudy 18 
aui 27 
doudy 27 
doudy 21 
Mr 32 
doudy 11 
doudy 23 
Mr 27 


30 

27 


THE LEX COLUMN 

Staying afloat 


They scarcely need reminding, but 
gilts traders will certainly see yester- 
day's floating rate auction announce- 
me nt as another sign of how difficult 
market conditions have become. The 
Ban k of En gland has not auctioned 
conventional medium-dated stock 
since February. While the floating rate 
device spares the need far abrupt can- 
cellation of auctions in the unfortu- 
nate TT |aTvngr of Germany, Austria and 
Spain, it must hope that normal busi- 
ness can be resumed soon. There are 
sensib le reasons far issuing floating 
rate debt, but they wfil fail to con- 
vince if such auctions become a habit 

As long as the Bank believes in its 
own ability to hold inflation down - 
and therefore base rates at reasonable 
levels - floating rate borrowing may 
turn out cheap. The trouble Is that the 
more frequently the Bank issues float- 
ing rate debt the more its critics will 
worry that it is adding to inflationary 
risk. Some economists are already 
anxious about the expansion of MD 
money supply and the low real level of 
short-term interest rates. Since the 
mam buyers of floating rate gilts are 
hanks, they will fret that the Bank is 
monetising government debt as wdL 

Such mutterings are muted at pres- 
ent. But they are bound to grow 
loader if many more floating rate 
issues appear. That speaks for the 
occasional large issue rather than a 
cdhtin u ing series of smaller ones. The 
first floating rate gilt was a modest 
rashn affair that has proved to be 
iHiqnitL The Bank would appear under 
better control of its funding policy if it 
now risked a much larger floating 

rioal It COUld than aminnnfp that no 

more floating issues were to fallow 
and that it would not return to the 
fixed rate market until conditions 
really do improve. 

Greycoat 

Yesterday’s £47m rights issue from 
Greycoat underlines how much bag- 
gage many property companies are 
still carrying. iJke Wales City of Lon- 
don’s nftsh call on Thursday, Greycoat 
is making a second demand only 
mnrtfhg after firing shareholders to 
rescue it from the brink. Also lflw 
Wales, a large slice of the proceeds 
will go towards refinancing an exist- 
ing property. Greycoat is taking full 
control because a partner is unwilling 
to pot up additional funds when oat- 
standing debt falls due. Ok wonders 
how many more recently distressed 
property companies will be tempted to 
come back far a second helping. 


FT-SE index: 3022.9 (-7.2) 


fireyeaat 

Share price (pane*} 
200 



By pricing its rights at a 30 per cent 
discount to net asset value, Greycoat 
is at l wt of ferin g something like fair 
value. Although the company will still 
be 137 per cent geared after the issue, 
most of its debt is fixed rate. With its 
portfolio fully let, servicing the debt 
burden out of rental income should 
not cause sleepless nights. The compa- 
ny's largest properties are also in the 
west mid of London, where the pros- 
pects for rental growth are brightest 

With some of Its largest tenants 
already paying higher rents than the 
market norm, though, much depends 
on Greycoat’s ability to add value 
though development. Its interest in 
sites such as Paternoster Square, near 
St Paul's Cathedral, certainly gives 
plenty of scope. Finding the right 
institutional partners and striking 
attractive development deals will be 
the real test 

Rees 

The other regional electricity com- 
panies are set to follow Eastern Elec- 
tricity down the share buy-back route. 
This week London and SWALEC said 
they would seek authority to buy back 
up to 10 per cent of their equity. 
Southern and SWEB also plan to ask 
shareholders for permission. 

The recs are unlikely to act until 
Prof Stephen Uttlechild. the industry 
regulator, finalises price caps far their 
distribution businesses in August But 
it is hard to see the price regime being 
so tough that their scope to restruc- 
ture their balance sheet vanishes. At 
worst their current cash inflow could 
turn into a modest cash outflow. But 
given the starting point of low 
or zero gearing, there would still 


be an opportunity to buy back equity. 

For shareholders, there are three 
main benefits. First it should boost 
shareholder returns. Second, there 
would be less danger that rec manage- 
ments would embark on foolish diver- 
sifications if they were no longer Rush 
with The record to date has 
been, at best, patchy. Third, it would 
be better to have the cash out now 
than risk dividend controls or punitive 
regulation under a future Labour gov- 
ernment. For all Mr Tony Blair’s talk 
about creating a "dynamic market 
economy”, that must be a possibility. 
Managers have an incentive to buy 
back shares too. If they do not, they 
will attract predators when the gov- 
ernment’s golden shares expire next 
year. 

LVMH/Guinness 

It did not take the equity market 
long to figure out that the restructur- 
ing of LVMJTs relationship with Guin- 
ness might be a better deal for the 
French company than first appeared. 
It has allowed LVMH to focus more 
closely on its luxury goods and per- 
fumes business, which has so tar 
enjoyed a stronger recovery than 
champagnes and spirits. Hie result is 
a 22 per cent rise in turnover in the 
first five months and an official fore- 
cast of a 30 per cent rise in first-half 
gaming s Cognac sales suffered a stri- 
king slowdown during the last couple 
of months while champagne turnover 
is up only 10 per cent so far this year. 

On the basis of such figures it is not 
surprising that LVMH shares have 
out-performed Guinness by some SO 
per cent since the restructuring was 
announced. Yet. it would be wrong to 
conclude that Guinness had fumbled 
the affair. The deal should still turn 
out to both companies’ advantage. The 
difference is me of timing. 

Given Mr Bernard Arnault’s broad 
ranging ambitions far LVMH, it made 
seise far Guinness to home in on the 
drinks side. Moreover, it added to its 
interest in Mott Hennessy at the bot- 
tom of the cycle. Economic recovery 
and a lower price of grapes should 
eventually put some fizz back into 
champagne sales, while the rising 
Tokyo stock market may tempt 
Japan's salarymen to splash out on 
expensive drinks again. The trouble, 
as before with Guinness, Is that recov- 
ery is painfully slow. It does not help 
that no replacement has yet been 
found for Mr Crispin Davis, who 
resigned as head of its spirits business 
last October. 



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SECTION II Weekend June 18/June 19 1994 


Religion: 

are we 
better off 
without it? 

The age-old dispute between science and 
religion has resurfaced But science has the 
moral high ground, says John Postgate 

W hy is it that a society I will not rehearse the counter-argu- 
that has reaped such meats, that science is as spiritually 
enormous benefits from rewarding as a religious experience. Argu- 
scien.ce should have meats about spirituality are sterile, but 
developed such a wide- those about morality are not And science 
spread suspicion and dislike of it? is far from being amoral; it a 

Consider, for example, the following stem, austere morality on its practitio- 
from a columnist in the The Oldie maga- ners, one which pervades their lives and 
zlne. “Modem science has become a luma- results from the fundamental nature of 
tive, prestigious racket, maintaining its aeionn* 

hold over us by force and propaganda . . .It Science is a continual linking together 
is expensive, dirty and dangerous. It is of observations and experiences, codified 
eating up the world's resources, spreading as self-consistent logical structures (cata- 
fOth over its surface and creating ever logues, hypotheses and theories) into what 
more lethal devices . . .Despite the billions we call knowledge. It requires a particular 
that have been lavished on medical way of thinking about the world, which 
research, there has been. . . no si gnifican t we call reasoning, 
reduction in deaths From cancer and heart This is not to say that scientific inspira- 

disease." turn is necessarily rationed; often it is not 

This shows all the petulant silling that But before an observation or concept 
has informed much recent anti-science becomes part of the logical structures of 
writing, and reflects a widespread outlook, science, it mist be seen to be rational 
which almost always includes a Christian when dovetailed into the existing body of 
or Islamic bias. Why has the old dispute knowledge. 

between religion and science resurfaced in Those structures are constantly open to 

so crude a form? challenge and modification, which is the 

The reason, I suggest, is that science has crucial difference between science and 
come to occupy the high ground of moral- religion. There are no dogmas, no absolute 
ity, which has prompted bizarre attacks certainties, in science; what are thought 
against It Moral superiority may seem an and spoken of as scientific truths are sim- 
odd defence against accusations that sd- ply probabilities so high that we can treat 
mice is responsible for almost all of the them as if they were certainties. Science 
environmental and social problems of the approaches ever closer to the truth, but 
modem world, but the effect of science is never gets there. So for a scientist there is 
not the central issue. It is an old truth that no absolute truth, 
science is neutral, that its applications are Why, then, does anyone bother to seek 
as good, or as evil, as people malm them, knowledge? For the same reasons that a 
Some recent attacks on science have baby or a puppy explores the world 
been more subtle. It has been argued that around it; there is no other way. The more 
the neutrality of science means that it is we understand our surroundings and can 
dehumanising. Being neutral, it imposes foresee opportunities and events, the safer 
no spiritual or moral value, ft dentes the and happier we feel This search for what 
existence of God and rejects any transcen- we call scientific truth imposes its own 
dental purpose to justify our existence. It morality of honesty, co-operation and 
belittles mankind’s status in the universe, sharing. 

and threatens a reductionist, materialist These virtues are imposed not by priests 
interpretation of our thinking and being; it or mystical authority, but by utterly prac- 
dismisses the possibility of rewards and tical considerations. You do not, as a sci- 
retribution in an after-life, and enjoins no entist, advance knowledge or your own 
imperatives towards goodness, kindness, reputation if you are guilty of deception, 
altruism, or even considerate behaviour or self-deception; nor if you disregard 
towards one's fellows. In short, it is unwelcome or inconsistent evidence, nor 
amoral as well as inhuman. yet if you conceal rather than share data. 



Why? Because deception, plagiarism and 
falsification of evidence will be found out, 
usually very soon; self-deception will 
engender contempt mnr«ilmpnt , such as 
failure to publish, will be self-defeating 
through loss of scientific credit but above 
all such behaviour will delay scientific 
progress. 

Of course, there are scientific cheats and 
fraudsters, but they are happily rare. The 
most common transgression today is prob- 
ably concealment It happens for reasons 
ranging from industrial or military 
secrecy to gaining an advantage in a race 
for publication. It rarely amounts to more 
than a delay in announcing one's findings, 
and it is always shaming Fudging results 
to support a point of view is probably the 
next most common transgression, but it is 
rare because every scientist knows it is 
ultimately pointless. 

Of course, scientific communities have 
their share of jealousy, greed, prejudice 
and envy, but all scientists know that in 
the end progress depends on openness and 
the sharing of data. Opinions and convic- 
tions may be held as strongly as in any 
walk of life, but a window of open-minded- 
ness and self-criticism is essentiaL 

This becomes a general outlook which 
can make scientists exasperating to live 
with; it is also the reason why so few 
scientists are to be found in politics, or 
hold religious beliefs. Those scientists who 
are religious have to think in compart- 
ments, dosing down for religious thought 


the critical faculties that they would use 
for sdentific work. 

Yet in spite of the strong moral founda- 
tion of science and the material progress 
which it has delivered, scientists must be 
careful not to underestimate the benefits 
of the world's religions. They have given 
purpose, morality and social coherence to 
people's lives. They have nurtured art, 
learning and literature and, in earlier 
times, produced the substantial technical 
and material benefits which stemmed from 
religious architecture and land use. 

So if one counts up the benefits of sci- 
ence and religion, the score is roughly 
equal. But the world’s religions have also 
brought the horrors of human sacrifice, 
crusades, pogroms and inquisitions. In the 
modem world this darker side of religion 
has become dangerous. For unlike science, 
religion is not neutral; it tells people what 
to da And one of the things it tells them 
is, “Kill the Infidel". 

Just consider, for example, Ulster, Yugo- 
slavia, Israel, Iran, Iraq, Sudan, Kashmir, 
Armenia and Azerbaijan to-day, observe 
Protestant, Catholic, Serbian arid Russian 
Orthodox Christians, Jews, Shia and Suni 
Moslems, Hindus, Sikhs and minor sects, 
in their tens and hundreds of thousands, 
murdering each other, often in revoltingiy 
medieval ways. All in the name of their 
god or gods. 

It is sometimes claimed that the con- 
flicts are not religious but ethnic, tribal, 
nationalist or political. A few surely are - 


especially in Africa, for example, where 
genuine tribalism persists - but try asking 
those who are sniping and shelling in Bos- 
nia, shouting slogans in Tehran and Bagh- 
dad. saririwg temples in Kashmir , shooting 

tourists in Egypt, planting bombs in Brit- 
ish shopping marts 

Some say that fundamentalist kill- 
ers are deviants, distorting the true teach- 
ings of their religion and perverting its 
morality; that these modern-day holy wars 
are a negative fall-out of religion, analo- 
gous to the pollution, environmental dam- 
age and unethical experiments which dis- 
figure the applications of science. 

There is something in this, but it does 
not stand up to close examination. Most 
religions do indeed forbid killing; a few of 
the belligerents are mmdlRBg thugs, sadis- 
tically disobeying this injunction; but 
most such fighters are ordinary people, 
following a religious imperative. They find 
support from their myths and texts, 
among their priests and their sflent co-reli- 
gionists, because retribution is part of reli- 
gion. In some devious way they are con- 
vinced that they are carrying out their 
god’s will. 

Therein lies the moral advantage of sci- 
ence. Its morality is incompatible with 
such imperatives: sdentific principles, and 
logic, cannot be construed as incitement to 
mass killing, or even Individual murder. 
Science has had its back-sliders: a few 
scientists have shown themselves capable 
of murder In the name of research, as 


happened to Nazi Germany and Japanese 
prison camps during the second world 
war. Doubtless, too, there are enthusiastic 
participants in the current spate of reli- 
gious conflicts who, in another compart- 
ment of their minds, are moral and dedi- 
cated scientists. 

Every walk of life has its aberrants, but 
can you imaginp scientists, to hundreds, 
thousands, tens of thousands even, arming 
themselves and murdering, torturing and 
maiming their fellow beings for some sci- 
entific principle or “truth"? Many people 
will need religion for decades to come, 
probably for centuries, because science is 
comparatively young and the morality it 
imposes, by example and not precept, is 
still inaccessible to many people. But to- 
day religion, with its backbone of retribu- 
tion, jihad, crusade and battle, presents a 
threat to mankind that is quite as serious 
as any of the environmental and social 
perils attributed to science, and much 
more immediate. 

A couple of years ago, I remember a 
scholar of Byzantine history saying he 
hoped that “mankind will soon learn that 
religion is too important a matter to kill 
each other about”. It took me two days to 
realise how tragically mistaken that 
thought was. I wished him to say: “If only 
mankind would learn that religion Is too 
unimportant a matter to kill each other 
about" 

John Postgate FRS is emeritus professor 
of microbiology at the University of Sussex 


CONTENTS 

Finance & Family : Norma Cohen 

on surrender values of life policies 111 

World Cup *94 : Reports from the 
US as the tournament kicks off X 


Sport: John Barrett on the 
prospects for Wimbledon XI 


How to Spend It : Roller-blading for 
fun, exercise - and transport XIV 


Travel : Climbing Mount Fuji: a 
religious experience XVII 

Art : William Packer on RB Kitaj’s 
exhibition at the Tate Gallery XX 



The horse trader In the winner’s 
enclosure: Robert Sangster on a 
life of racing XI 


Arts 

books 

Brtdga, Cbsss, Cressword 

rtsMon 

Hnanos & tin Fsndf 
Food & Drink 


How To Spend It 
OenMo Lawson 
Martwta 

JonMltafp 




lacfnsf Thwnpson-No«l 

Ttav«l 

TV&Radto 


XX. XXI 
XXB 

xx» 

XV 

B-vai 

XM 

XIX 

XN 

XXW 

B 

IX 

XM 

xvu 

XV* 

XI 

XXIV 

XVLXVU 

xx» 


The Long View/Barry Riley 

Teenage masterminds 


■I “This time it's going to 
tT \ he different" It is the 
regular plea of the 
M- jh salesman, the politician 

and the bad payer, but 
prudent long-term 
investors will prefer to 
■TA assume that things wifi 
wm. m stay much the same. We 

even had a rail strike 
this week to remind us of the old days. 

Kenneth. Clarke, chancellor, told the 
City on Wednesday that there would 
not be another boom-and-bust cycle. 
But many Tory backbenchers see tax- 
cutting as the only means by which 
they might salvage their parliamentary 
seats at the next general election. In 
any case, coldly calculating City inves- 
tors will reason that in two or three 
years' time the Tories could be swept 
away and replaced by a Ton; Blair-led 
Labour government with a commitment 
to full employment 
So far, certainly, the British economic 
recovery looks film a throwback to the 
past Consumer spending has been the 
wigirw or recovery, based on a falling 
rate of savings, and import volumes 
have been rising faster than export vol- 
umes. Compare this with the recovery 
now beginning in Germany, where 
domestic consumption is flat but export 
orders are rising sharply. 

History suggests that although the 
Treasury may not repeat its mistakes it 
is liable to make a new one. This is the 
department, remember, that guided the 
British economy into the Lawson boom 
of the late 1980s. when an economic 
miracle was declared; that steered the 
economy into a deep recession that 
John Major had said need never hap- 
pen; and next, directed us into the 
European exchange rate mechanism 
which we would never be forced to 
leave. As for current policy, it is Ill-de- 
fined hut is somehow based on regular 
discussions between Kenneth Clarke 
and Eddie George at the Bank of 
England, who between them will 
manipulate shortterm interest rates at 
precisely the right time. 

But they are like old soldiers re-run- 
ning the D-Day invasion when today’s 


battles are developing elsewhere. The 
big problems now concern long-term 
interest rates, which have been rocket- 
ing up all year. Not only h as this taken 
the Treasury by surprise but it shows 
little inclination to grasp what is going 
on or to realise that there will be impor- 
tant policy implications. 

Kenneth Clarke's contribution on 
Wednesday was, rudely, to accuse the 
City markets of being “schizophrenic” 
in that traders and investors were pan- 
icking over inflation when the analysts 
and economists to the next office were 
forecasting that the government's tar- 
gets would be immaculately reached. 

Personally, I can no longer use the 
word schizophrenic in this column. 
When l da the Schizophrenia Associa- 
tion of Great Britain complains that I 
am trrvialising a distressing condition. 
Quite. In any case, Clarke has got it 
completely wrong, in two ways. 

The allegedly perspicacious analysts, 
are part of the sales teams used by the 
big securities bouses to persuade inves- 
tors to buy stocks and bonds, including 
billions of British government gilts. 
There is no reason why traders and 
investors should take what they say at 
face value, any more than they should 
have put their money behind Clarke's 
promises on Thursday morning (which 
they did not). 

S econdly, it is misleading to sug- 
gest that inflation is the main 
problem. Certainly, many inves- 
tors are expecting some cyclical 
pick-up over the next year or two (to 4 
per cent by the end of next year, accord- 
ing to the latest Smith New Court/Gal- 
lup opinion survey). Yet this scarcely 
explains why gilt yields have jumped by 
more than two percentage points this 
year, still less why German ten-year 
bond yields this week rose above corre- 
sponding returns on US Treasuries. 

Could it be that we are finally head- 
ing For the global capital shortage 
which has been much predicted? It was 
temporarily deferred by last year’s spec- 
ulative bond market bubble but, with 
economic recovery now getting under 
way in continental Europe, the condi- 


tions for a serious global capital 
squeeze are slotting Into place. The 
boom continues in the third world, and 
the former Communist states of eastern 
Europe are accelerating, not least to 
their demands for imported capitaL 
Investment demands are rising globally. 
Only the continued recession in Japan 
offers a moderating influence and a 
compensating flow of savings. 

A couple of years ago, the 
Treasury mapped out its 
recovery strategy against the 
background of a growing and 
liquid global bond market The UK 
could run very large twin deficits - a 
public sector borrowing requirement 
which peaked at £43bn in 1993 and a 
balance of payments deficit which was 
Ellhn last year and is likely to rise. We 
could live beyond our means and bor- 
row the difference. A recovery based on 
high consumption and declining 
savings could be tolerated. Sometime 
like, er, 1999 we would eventually 
return to balance. 

The UK was not of course, alone in 
this. Too many countries have tried to 
put their snouts in the same trough. 
Some face worse problems, such as 
Spam send Italy where government bond 
yields are above 10 per cent 
In a world of scarce capital, borrow- 
ing Is not a cheap and easy option. 
Even last year the Bank of England was 
reluctant to issue long-dated gilts at 7 
per cent or less, but now it feces market 
rates of over 8‘A per cent The policy 
response is likely to be to roll over the 
accumulating deficit on a short-term 
basis, largely through the banks, but 
that will threaten kiss of monetary con- 
trol (now troubling the Bundesbank) 
and an eventual confidence crisis. 

A different economic strategy is 
required: further tax increases to curb 
consumption and reduce the deficits. In 
a growing world economy there is scope 
to rely much more heavily on. exports to 
support output and employment And 
when capital is expensive it pays to be 
a lender, not a borrower. That does not 
look like a way of winning an election: 
But it really toould be different 


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FINANCIAL TIMES WEEKEND JUNE l8/JUNEJ9Jgg4 


MARKETS 


London 

Where are the 
benefits of 
growth? 


Roderick Oram 


T here was a time 
when guests of the 
Lord Mayor erf Lon- 
don strode into his 
official residence, 
the Mansion House, under a 
pediment depleting "The City 
erf London trampling on Envy 
and receiving the benefits erf 
Plenty". 

The pediment is still there, 
but guests on Wednesday 
slipped in through a side-door, 
now the devalued main 
entranra, to hear Ken dlarlm 
give the chancellor's annual 
speech to the Mayor and City. 
He promised that the govern- 
ment had forsworn boom-time 
policies based on "a fraudu- 
lent, Inflationary, feel-good fac- 
tor", which inevitably led to 
busts. 

But if the Government has 
stomped on inflati on, where 
are the benefits of growth? A 
raft of economic statistics 
released this week showed that 
inflat ion was indeed moderate 
but growth was worry ingly 
weak in some respects. 

The markets had to cope 
with this and several dlsturb- 


FT-SS* AH %'dnoga) • 


I m 1 . 

* . . 

« J i ! 


RMt QMP growth {Bonisd % change) 


ing external factors such as ris- 
ing commodity prices in the US 
and acute tension over North 
Korea. Commendably, London 
equities hold their own even as 
thair w wnariii, the European 
bond markets, fell further. 
Despite these pressures, the 
FT-SE 100 index slipped only 33 
points to end the week at 

3.029 9 

A rising stock market Is a 
ipftrfoig indicator, running per- 
haps same 18 months ahead of 
economic growth. Judging 
from the accompanying chart, 
however, the stock market has 
been ambling along over 
recent years, foreshadowing 
very moderate growth at best 

This year and next, gross 
domestic product will rise by 
2£ per cent, armr rtmg to the 
consensus forecast of 36 pre- 
dominantly City firms. But 
four of them - Citibank, EMn- 
wart Benson, Panmure Gordon 
and Robot Fleming - expect 
growth to be well below 2 per 
cent next year. 

The gtoranstere were quick 
to seize on the dark lining to 
every silver cloud in the eco- 



y ... % 

mimic sky this week. Factory 
output prices rose only 0.1 per 
cent in May from the previous 
month, but input prices were 
up 0.9 per cent thanks to 
higher prices for oil and other 
commodities. Retail prices 
excluding mortgages were up 
SL5 per cent in May from a year 
BHTtiw hut sales volume was 
virtually flat. The growth rate 
of average earnings moderated 
slightly in April to 3.75 per 
cent but the unemployment 
rate slipped 0.1 of a percentage 
point to 9.4 per cent in May. 

Kleanwort Benson identifies 
a number of weaknesses in the 
economy. These include: the 
wearing off of the one-off boost 
to consumer spending from 
lower interest rates; stagnant 
employment growth, which 
will lead to only a moderate 
rise in real personal disposable 
Income; particularly meagre 
export orders, now that the 
post-ERM devaluation, benefits 


88 89 SO 91 92 9S SK 


HIGHLIGHTS OF THE WEEK 


Price 

/day 

Change 
on week 

1994 

High 

1994 

Low 


FT-SE 100 Index 

3022.9 

-33 

3520-3 

29318 

Conanotfity prices rise 

FT-SE ftffid 250 ] relax 

3527.1 

-81.4 

41526 

3537.7 

Over-the-counter options expire 

Barclays 

561% 

+1514 

640 

487 

Hoare Govett t^igrade 

British Gas 

265% 

-28 

358 

259 

urgaa roponfannoana xnraatcT>oG 

" — Hal 1 11I ■ 1 

LHIIUHI rQuOmVIl 

410 

421 

414% 

340 

Ol price hits $17 

Eurotunnel lits 

288 

-54 

592H 

288 

Feus of low take up of rights 

Glaxo 

579 

+18% 

725 

520 

Chairman retires 

NFC 

189 

-23 

291 

187% 

Interims (flaappofcrt 

NatWsst Bank 

471% 

+12% 

622 

421 

NatWsst Secs 1wj|* recommendation 

RMC 

823 

-67 

1079 

813 

Interest rates tears 

Rea Brothers 

59 

-17 

79 

59 

Profits warning 

SMnsfaury (J) 

410J4 

+21 K 

480 

342 

Yamalchf "buy'Ypossibto ADR 

Shoprfta 

59 

-21 

243 

51 

Loses contract 

Southern Business 

42 

-32 

104 

41 

interim profits down 56% 

Wagon Industrial 

473 

-25 

527 

451 

Acquisition 


have passed; and the creation 
of a fiscal policy, due to the 
government’s extensive spend- 
ing- cuts, which is “even more 
deflationary than the Howe 
budget of 1981". 

Given this fiaffrid economic 
outlook, there is no reason tor 
an interest rate rise, Kle in- 
worts said. In fact, dose scru- 
tiny of the minutes of meetings 
between the chancellor and the 
governor of the Bank of 
En gland, Eddie George, show 
that the chancellor is aware 
the economy might slow and 
that he is prepared to act if it 
did. 

For his part, governor 
George told the Mansion House 
nnrfiVnrp that a rise in interest 
rates would be the right 
response to underlying 
strength in the economy and 
the prospect of rising inflation. 
This was taken by some in the 
City to mean that interest 
rates were about to rise. 

Bui for Robin Aspinall of 
Panmure Gordon, the risks lie 
on the downside. He believes 
that the Governor is too 
obsessed by the danger of infla- 
tion. “We are rapidly approach- 
ing the point where the econ- 
omy will demand still-lower 
interest rates, yet Eddie's para- 
noia threatens us with the big- 
gest economic error of judg- 
ment since Nigel Lawson was 
marfe chancellor.” 

If rising oil prices did any- 
body any good this week, it 
was British Petroleum and 
Lasmo. BP shares ended the 
week at 411 V^, matching their 
all-time high. Buying of the 
stock continues strung on both 
pi flp? of the Atlantic and will 
accelerate it as expected, the 
Clinton administration 
approves the export of oil tram 
BP*s Alaskan ffelris- 

For Lasmo, a rising ofl. price 


could float it off the rods of 
Enterprise’s takeover offer. 
The bidder marginally 
improved its terms on Tues- 
day; no is on offer but 
Tjwmn shareholders would and 
up with 445 per cent of the 
pnTargpd gTOUp lathfiT tbart Hw 
40 per cent first proposed. 

But Lasmo shares are a good 
play on the crude price. A 
number of key institutions 
hdMmg both Tjremn and Enter- 
prise shares might prefer to 
maximise that opportun ity by 
keeping the two companies 
separate. The offer closes on 
July L 

A number of departures of 
varying kinds woe flagged by 
companies this week. Amstrad 
is moving away from “p fleit- 
high, seH-it-cheap’ retailing by 
buying VIglen, a maker and 
direct seller of computers; 
Glaxo is saying goodbye to Sir 
Paul Girolami, its chairman 
through its breath-taking 
organic growth. He distrusted 
acquisitions so the company 
might now warmup to a large 
takeover; EMAP turned itself 
into the third-Iargest publisher 
of consumer magazines in 
France through £108m of pur- 
chases; and Central Railway 
launched a £6m placing, seed 
money for its multi-billion 
pound plan to build a 180-mile 
railway from Leicester to the 
f?hannel T umid. It would be 
the first new mainland route in 
more than 50 years. 

If Central’s trains ever run. 
they would plunge through the 
Eurotunnel portal in Kpto- 
Judging by Eurotunnel’s 
plunging share price this week 
ahead erf the close next week of 
Its rescue rights issue, a pedi- 
ment should be erected over 
the gntT-ftry*- “Bankers tram- 
pling on equity and receiving 
the benefits of penury”. 


Serious Money 

Clients who face 
a life sentence 

Gillian O’Connor, personal finance editor 


L ife insurance compa- 
nies are inured to 

critidsm. This is for- 
tunate, for the Office 
erf Fair Trading (OFT) has just 
put in the boot again. 

tt Is already common know- 
ledge that if you cash in a life 
insurance policy early, you will 
probably get back less than the 
premiums you have paid over. 
In some cases, you get nothing 
back for the first couple of 
years. 

Yesterday’s OFT report on 
surrender values - what you 
get back if you cash in a life 
insurance policy early - makes 
a few commendably simple 

points- 

■ The higher the proportion of 
policyholders surrendering 
early, the more money some 
companies make. 

■ There is a suspiciously dose 
correlation between companies 
with a high proportion of 
policyholders surrendering 
early, and those with miserly 
sur re n der values. 

■ If you average out policy- 
holders' returns (to include 
both those who surrender early 
and those who stay the full 
term), returns from some com- 
panies are negligible or nega- 
tive. 

No wonder the OFT is moved 
to question "the extent to 
which [certain companies] are 
likely to be working in the 
interests of their customers”. 

A second major cause of con- 
cern is the wide variations in 
surrender values between dif- 
ferent companies. These are 
most dramatic in the early 
years. But even after five 
years, pay-outs can vary by 
more than 50 per cent How 
many ordinary customers 
know which companies are 
likely to impose the biggest 
penalties? 

The OFT also highlights the 
dose connection between sur- 
render penalties and charges. 
Surrender penalties are really 
charges under a different 
name. When the explicit 
charges fidl to cover the initial 
costs of getting the customer 
on their books in the early 


years, surrender penalties plug 
the gap. So, when your friendly 
Insurance salesman spells out 
the policy charges, do not for- 
get the sting in his tail. 

■ ■■ 

Our series of articles on invest- 
ment charges (page VQI this 
week) shows how bard it is for 
investors to work out the true 
costs of investing. We reviewed 
only the most popular types of 
equity-based Investments: unit 
nnrf investment trusts, 
personal equity plans, life 
insurance and pension plans. 

All have several different 
charges, and the charges vary 
from one type of Investment to 
another, it is hard enough to 
make meaningful cost compari- 
sons even between investments 
of the same type; virtually 
Impossible to do so far differ- 
ent types of investment 

How much does this matter? 
Costs are pretty tedious and 
conventional wisdom insists, 
rightly, that performance mat- 
ters more *h«n costs. 

True. But although low 
charges cannot turn a bad 
investment performance into a 
good one, high charges can 
damage a good performance 
seriously. 


How about this as an irresist- 
ible offer? “Give us £10.000 now 
and we guarantee to give you 
back £8£00 over the next five 
and a half years: ie. you will 
get no interest and lose 15 per 
cent of your original capital" 

Not tempted? Try this one. 
“If the FT-SE 100 index doubles 
over the five and a half year 
period, we will give you back 
£16,000: ie, your original capital 
of £10,000 phis £6,000.” 

Better, but still not very 
alluring. If you invest in the 
FT-SE 100 itself, and it doubles, 
you win get back a total of 
£20,000 plus more than £2,000 
in income. 

Enough of such titillation. 
The product we are talking 
about is called Millenium 


Monthly Bond, and Its message 
to investors in advertisements 
is rather different “10% pja. 
paid monthly free of basic-rate 
tax," says the front page of its 
leaflet The figure 10 is more 
than Mn fr igh- 

Further down the leaflet in 
smaller type, crane the details 
about minimum and maximum 
total returns which we quoted 
at the beginning. 

The deal is fairly simple. 
Your 10 per cent monthly 
<7WBTt« rolls in h ri i or 
high water, and totals £5,500 
over the whole period. What 
you need to keep your eye on 
is the return of your original 
ca pital. 

The basic guarantee is that 
you will get back 30 per cent of 
it. If the FT-SE rises by 
between 439 per cent and 939 
per cent, you will get back 100 
per cent Yourmaximum possi- 
ble capital return is 105 per 
cent, which you get if the 
index rises by 10 per cent or 
more. 

General Portfolio, the insur- 
ance company which sells the 
bond, points out that stock 
market growth for similar peri- 
ods of time has averaged 9.8 
per cenL What it does not 
point out is that its chosen ref- 
erence period indudes two of 
the bluest bull markets of 
modem times. Many pundits 
argue that these returns were 
exceptional, and are predicting 
much lower ones In the 1990s. 

But the more important 
point is that it is possible to 
get a guaranteed return in the 
Upper hn1f of the Millenni um 
range with absolutely no risk. 
A conventional five-year guar- 
anteed income bond, which 
repays all your original capital, 
offers up to 8 per cent annual 
interest or nearly < per cent if 
you insist on monthly Income. 

So, for an extra two percent- 
age points on your income, you 
are risking 70 per cent of your 
capital if you opt for Millen- 
nium. 

{Millennium: period of good 
government, great happiness 
and prosperity - OSD. Oh 
really?). 


AT A GLANCE 


Finance and the Family index 

Life insurance surrender values 


Week ahead/Results tabtes/Directors* dealings . 
Gifts/South African stockmarket 


Unit trust performance/Hlghest rates 

Medical insurance/new trusts. 

Pension costsAQ&A 


...m 

_jv 

_.v 

_vi 

_VH 

.VII 


«C to year band 

"YJeM(%) ; 

MJQ 


Oi (price ■> jp •*;»' 

. Brent spot piper tewifr*-!-,. >« 
•/ • 2D ' 


* r: ;: A 



1983 

SoucaeFTttaphfci 


Long-term investors absent 
from gilts markets 

Got prices have been falling since early this year. Yields have 
been pushed up more than 2 percentage points, indicating an 
e xpectation of higher inflation and higher Interest rates. The gift 
market has been volatile In its reaction to both political and 
economic news, domestically and Internationally, and many 
long-term investors have been steering dear of the market untS ft 
calms down, leaving the field dear for short-term speculators. 

■ Gflts fall on hard times. Page V. 


Oil prices rise sharply 

Oil prices have risen sharply since the February low of just under 
$13 a band. The benchmark Brent blend rose above $17 a 
barrel at one point this week for the first time since the end of 


The most recent rise is caused by a number of factors inchxSng 
concern over tensions with North Korea whBe Wednesday’s 
decision by the Organisation of Petroleum Exporting Countries to 
cancel its September meeting was taken as confirmation that 
Opec wBl stick to Its present production cafling of 24.52m barrels 
aday urrtH the end of fee year. Worries over flghtmg in Yemen 
and a raised forecast ol world ofl demand from the international 
Energy Agency have also helped fee bulBsh sentiment 

Fund managers offer swop 

Holders of units in the City of London emerging markets unit 
firustare room to be Invited to swop their unite for shoes and 
warrants in a new investment trust being set up by City of 
London fund managers. The Investment trust wffl, like fee unit 
trust, invest m dosed-end single country funds tor emerging 
markets, rather than directly in companies. 

Cityof Umdonaxpects about two-thirda of unit holdere to take 
^ "Neb new Investors are Hkely to be invited to 
suDSOToetof more shares. The unft and in v e s t m en t trusts wBl be 

“KWgements for easy switching 

between the two funds. 

Smaller company shares drift 

con * n * xi to *ift generally 

wwnwttrtsthra week. Die Hoare Govett Smaller Companies 

Next week’s Finance and the Family 

o' City's private 

manage teT 80 “wosment portfolio far you, and how win they 


Wall Street 


A sporting chance that failed to score 



O ne of Wall Street’s 
best-loved. If more 
obscure, market 
theories - the 
Ranger Rally - was put to the 
test tins weds. 

The theory holds that every 
time the New York Rangers ice 
hotkey team wins the Stanley 
Cop (North America’s champi- 
onship trophy), the stock mar- 
ket stages a rally on the fol- 
lowing day. 

Of course, to say “every 
time” is a little misleading 
because, before tins week, the 
Rangers had won the enp only 
three times and their last vic- 
tory was way back in 1940. On 
Tnesday night, however, a 54- 
year-old curse was lifted when 
New York defeated Vancouver 
3-2 in the last game of the 

fhmlit- 

Pandemo town broke out 
throughout the city, and 
hordes of hm^over but happy 
Wall Street brokers and trad- 
ers trotted into work next 
morning looking forward to 
the first Ranger Rally in more 
than half a c entur y. 

Alas, it never materialised 
because i nvestors - or those 
outside New York, at least - 
seemed unimpressed by the 
Rangers’ splendid achieve- 


ment After posting a quick 
eight-point gain at the opening 
bdL the Dow Jones Industrial 
Average reversed course. By 
the end of the day, it was 
down more than 24 points and 
back below the 3£00 leveL 

The reason the Rangers* 
charm failed to work its magic 
is the same reason the Bow 

hag rin ty gl wl to wiaka ninrh 

headway in recent months: 
inflation - or, to be more gre- 
ase, the bcokl market’s fear of 
inflation. Wednesday's 
declines were prompted by 
heavy selling of bonds by 
fixed-income investors 
unnerved suddenly by a sharp 
rise in commodity prices. 

Although the jump in tire 
Commodity Research Bureau’s 
index (from &31 to 238.61) on 
Wednesday was caused by 
political, not economic factors 
- in this case, rising tension 
on the Korean peninsula - it 
was enough to overshadow the 
morning's good news on infla- 
tion, an easing in the capacity 
utilisation component of the 
May industrial production fig- 
ures. 

The reaction of bond prices 
to these two sets of data shows 
just how nervous the US Trea- 
sury market remains about 


inflation in spite of the Fed- 
eral Reserve’s round of four 
monetary policy tightenings. 
These were designed to top 
inflationary pressures in the 
bud and reassure fixed-income 
investors that the value of 
their assets would not be 
undermined by rising prices. 

Capacity utilisation - the 
extant to which the capital 
stock of the country is being 
employed in producing goods 



- is a key inflation indica t or. 
It has been watched closely all 
year by Investors worried that 
demand in the rapidly growing 
economy will, eventually, out- 
strip companies' ability to 
boost production to meet flat 
demand. As any student of 
economics knows, when 
demand increases relative to 
supply, prices rise. 

So, Wednesday’s news that 
capacity ntflisation had eased 


in May should have delighted 
the bond market, especially as 
it came a day after the May 
consumer prices Index was 
released showing an unthrea- 
tening 0.2 per cent increase. 
Yet, jittery bond investors 
chose instead to focus on the 
CRB index, which rose sharply 
because gold and oil prices 
had firmed amid fears of a war 
between North and South 
Korea. 

The fact that the rise in the 
CRB was likely only to be tem- 
porary - and proved as much 
on Thursday and Friday when 
a meeting between former 
President Jimmy Carter and 
North Korean leaders in 
Pyongyang raised hopes of a 
diplomatic solution - did not 
dissuade the bond market 
from retreating at the. first 
sign of higher commodity 
Prices. This has been the pat- 
tern all year: the bond market 
has over-reacted to all the bad 
news about inflation while 
paying little attention to most 
of the good news. 

The stock market, mean- 
while, also has continued to do 
what it has done for most of 
the year - follow blindly in 
the bond market’s footsteps. 
Thus, the Dow, which rose 32 


points on Tuesday because of 
higher bond prices, fell 24 
points on Wednesday because 
of lower bond prices, then rose 
21 points the next day because 
of higher bond prices. 

This will have to stop at 
some stage but, for now, the 
Dow seems handcuffed to the 
30-year bond. Investors face a 
long, trying summer of modest 
rallies Interspersed with 
equally modest declines, and, a 
Dow likely to be stuck in a 
range somewhere between 
3,750 and 3^50. 

As for the defunct Ranger 
Rally, sport-lovers wffl have to 
look elsewhere for & new mar- 
ket theory. Basketball, per- 
haps? The New York Knicker- 
bockers are now playing the 
league championship finals, 
tied at two games apiece, 
against the Houston Rockets. I 
wonder what the Dow did the 
day after the Stocks last won 
the national title, back in 
1973? 

Patrick Harverson 

Monday 3783.12 + 09.67 

Tuesday 3814A3+ 81.71 

Wednesday 3790.41 - 24.42 

Thursday 3811.34 + 20.93 

Friday 


W hen. Sid. the 
advertising 
character created 
to promote the 
privatisation of Bri tish Gas , 
bought those shares In BG 
back in 1986, he was hoping 
for a profit, not a regulatory 
nightmare. But a nightmare 
Is what he got Ever since the 
government called in the 
Monopolies and Mergers 
Commission nearly two years 
ago. the prospects for Gas have 
been bedevilled fay uncertainty. 

Michael Ff eBp.Hinp . the 

preddetotf the board of trade, 
settled things down somewhat 
In December when he accepted 
the MMCs recommendation 
to liberalise the gas market 
But Sid s till had to contend 
with Clare Spottiswoode, the 
gas industry regulator - and 
the news from her this week 
was not good. 

Under the liberalisation plan, 
British Gas is supposed to hive 
off its network of pipelines and 
storage into a separate unit 
This unit wffl gtfil be owned 
by BG, but it will sail its 
services at arm’s length both 
to BG and the independent 
gas suppliers who want to get 
into the market On 


The Bottom Line 

Now it’s a nightmare for Sid 


Mttafe CatS • • 

Shape price rttotiv© to theFT-S&A Al-Stare Index * 

no • * »• & — . * — : 1 



Wednesday, Spottiswoode 
produced a formula governing 
the prices that the new unit 
will be able to charge for 
transporting gas around the 
country. 

She set it at 14.1<$p a therm, 
starting on October L After 
that, the price can go up by 
the rate of inflation minus five 
percentage points a year. This 
arrangement will continue 
until March 1997, when the 
liberalisation of gas will be 
complete and a longer-term 
pricing formula can be devised. 

Spottiswoode’s formula was 
a lot tighter than BG had been 
hoping for, and chief executive 
Cedric Brown wasted no tim e 
in going on the attack. It was 
“extremely tough", he said, 
and would probably prevent 
BG from raising its dividend 
this year. But although Brown 
might have been disappointed 
by the formula, he cannot have 
been surprised. 


The MMC report contained 
recommendations which 

Spottiswoode had indicated 
she would follow, and the 
market was prepared: when 
the news hit the screens, the 
shares fell only 2p. It was only 
when Brown mqifo his remarks 
about the dividend a few 


tnrnntoi later that the shares 
fell another I5p. Was this just 
bluster or a genuine cry of 
pain? 

It is true, as Brown says, 
that BG is under a lot of 
regulatory pressure at the 
moment; it must yield to 
competitors the larger part 


of the market for big gas users, 

something which is eating into 
profits. It also has an 
aggressive cost-cutting plan 
to shed as many as 25 BOO jobs, 
so there are not many more 
savings to be had from that 
quarter. T hen, starting in 1996, 
competitors will be allowed 
to enter the domestic gas 
market in stages until a fully 
competitive market is readied 
in 1998. 

There is always a possibility 
that these pressures could 
force BG to overstep Brown's 
warning and actually cot its 
dividend. But analysts doubt 
very much that that will 
happen. 

Nick An till, at Hoare Govett, 
says the worst for which 
sha re holders should brace 
the ms dvas is an 
dividend over the period of 
the market restructuring. 
“Neither haianrw sheet or 
flow considerations justify 


worrying about a cut,” he 

writes in a research note. 

The analysts at Nat West 
Securities take a similar view. 
They think BG can maintain 
its dividend over the 

transitional period provided 
it gets good profits from Its 
unregulated exploration and 
production businesses, 
although the dividend cover 
wffl fell. 

At Klfilnwort Benson, Paul 
Spedding also sees no dividend 
increase for the time being, 
at least in real terms, and he 
sympathises with Sid's 
predicament “He must be 
heartily fed up with all the 
bad news,” Spedding says, 

“and now he doesn't know 
what his dividend is going to 
be next year." 

As Spedding points out BG 
shares are yielding 6.7 per 
cent which is more than you 
get in a building society 
account But the lower-yielding 
water and electricity sectors . 
offer much better dividend 
growth prospects, and many 
BG investors may prefer to 
switch to escape the nightmare 
once and for alL 

David LasceUes 



/ 



FINANCIAL times WEEKEND JUNE 18/JUNE 19 1994 


FINANCE AND THE FAMILY 


l i 'Ti 






Your lapses are their profits . . . 

If you’re baffled by life policy surrender values, so was the Office of Fair Trading. Norma Cohen reports 


O ne of the coutimaag 
great mysteries for 
Mr and Ms Policy- 
holder has been how 
to calculate how much rash 
will be returned if an insur- 
ance policy is cashed in early. 

While there are no nffinfoi 
figures on how many policies 
might hill into this category, 
data prepared for securities’ 
regulators two years ago sug- 
gest that one-quarter to one- 
third of all policies are c as he d 
in during the first two years 


alone. The Office of Fair Tradr 
ing says its own information 
suggests that the policies most 
likely to lapse before maturity 
are unit-linked and sold by 




direct sales forces, while those 
least likely are with-profits pol- 
icies sold through independent 
finan^i advisers. 

This week, the OFT released 
results of a study aimed at tak- 
ing some of the mystery out of 
early surrenders. Aided by an 
actuarial consultant. Alexan- 
der Clay and Partners, it 
looked at how 60 of the UK’s 
largest life insurers treat their 
customers. 

It found that a number of 
companies actually profit from 
early lapse rales - and that 
many people holding policies 


with companies that have rela- 
tively high lapse rates are 
actually worse off than if they 
had no policy at aR. 

The OFT concluded: “On the 
basis of assumptions about 
lapse rates and projections of 
surrender and maturity values, 
the policyholders of some com- 
panies appear to receive aver- 
age rates of re t ur n which are 
no more than marginally posi- 
tive, car even negative." 

TOe OFT noted that the rea- 
son for there being mystery 
about surrender values was 
because fife insurers had never 
been required to disclose them. 
From January, new rules - 
urged by the OFT - will help 
to remedy that 

The data compiled by the 
OFT shows huge differences In 
surrender values: 



* \'"J 
Vv .V 


TOP QUARTILE PERFORMANCE SINCE LAUNCH 





Guinnes* Flight's Japan Smaller 
Companies Fund is second in 
Micropal’s sector of offshore 
Japanese funds over one year, with a 
performance of 22.2% in US Dollar 
terms compared co the Tokyo Stock 
Exchange Second Section which 
rose by 1.0%. The Fund also has top 
quartile performance since its launch 
in November i 990*. 

The Fund provides a well 
diversified exposure to good quality 
small companies operating at the 
leading edge of many of the 
emerging social, economic and 
technological trends in one of the 
world’s leading economies. 


more flexible and able to respond 
to change. Furthermore, their 
management tends to be identified 
closely with the company, often 
with a substantial personal stake, 
providing a significant spur to 
performance. 

WHY NOW? 

As the Japanese economy shows 
the First signs of recovery, we 
believe the smaller companies sector 
provides an excellent long term 
growth opportunity. 

To find out more, rerum the 
coupon today or call our Investor 
Services Department on (44) 4S1- 
712176 



WHY SMALLER COMPANIES? 

Japanese smaller companies 
often enjoy above average growth 
because they tend to be well 
focused on their main business and 
-"2- 3KS> 2253 *3385 SK308 S 

Return icu Guinness Flight Minagen (Guernsey! UniUxi, FO Bent 250, 
Gumtwv, CM 3QH. TeL- (44) 481 -71 2] 76. Fat [44) 481-712065. 

Pk-»e send me details of the Guumcss FBght Japan Smaller Co mpanw Fund. 


GUINNESS FLIGHT 


JAPAN SMALLER 
COMPANIES FUND 


S333 


TWr- 


_bwul*- 


Xwuy- 



a •■■awBgwm ■*>■■■ ItetiiLinH— Jaw 
5 ari«, bum M u ■ nfrha* 8 &*■* am Sttal femur fe* few* «■ ■> Wjra ihhiM Mum reajaan. 

Pm wwnn m ■cmb*i * a at tan. TtaWtoi 4 to mm m afefe h» l on M n «■ a m mt bn pamod 


■ On a 10-year with-profits pol- 
icy paying £S0 a month. Equi- 
table Life will return 98 per 
cent of actual premiums If sur- 
render takes place in the first 
year, and 118 per cent - if pol- 
icy is surrendered in year five. 
If you add in notional invest- 
ment income to the premiums, 
as we have done in the fahlp s , 
the figures are still a respect- 
able 94 per cent 

■ On exactly the same type of 

pokey, Royal Life pays no thin g 

if surrender occurs in the first 
year and only 75 per cent of 
premiums for a policy surren- 
dered In year five. 

■ For a 25-year, unit-linked 
policy paying £50 a month, 
TSB Life returns 43 per rant of 
all premiums paid if surren- 
dered in year one, and 93 per 
cent if surrender occurs in the 
fifth. 

■ Allied Dunbar returns zero 
per ceit of preznhnos if surren- 
dered in years one or two, and 
only 50 per emit if surrender 
occurs in year five. The OFT 
study also attempts to explode 
one of the great myths of life 
industry advertising. This has 
placed great emphasis on the 
final maturity values of 
long-term policies. Financial 
publications also tend to give 
these figures. 

Moreover, some companies 
pay very low surrender values 
in early years but deliberately 
tilt their policies to give the 
greatest bonus in the final 
year, effectively propelling 
them to the top of the league 
tables. 

The OFT argues, however, 
that because the vast majority 
of rfjgntg are unlikely to bold 
their policies to maturity, it 
would be more helpful to look 
at each company's weighted 
average rate of return (WARS). 
And policyholders whose com- 
pany is at the top of the final 


maturity value league table 
may find that the WARS is 
actually less attractive than 
that Of competing providers. 

The OFT prepared tables 
showing how this works. It 
identifies two companies. Com- 
pany H and Company L (each 
of which is a composite of 
three) and demonstrates how 
they treat customers with a 10- 
year pokey. 

By adding a five per cent 
maturity bonus, Company L 
comes top of the league table 
with a final value of £7.690. But 
for policies surrendered in year 
one. Company L pays nothing 
while Company H offers a 
refund of £343. 

In year two. Company L pays 
£532 while Company R pays 
nearly twice that, at £957. In 
feet. In nine of the 10 years of 
the policy. Company H is the 
better bet. a feet which never 
shows up in the league tables 
at afi. 

Moreover, the OFT said, the 
idea that unit-linked policy- 
holders could understand 
readily the surrender values of 
their policies simply by read- 
ing the product literature was 
quite false. 

John Mills, head of the 
OFT’s consumer policy divi- 
sion, added: “These tilings are 
not only obscure to the aver- 
age consumer but to the 
informed consumer as well.” 

The OFT, in attempting to 
compare the charges on unit- 
linked policies, found that com- 
panies used so many different 
mechanisms that it was almost 
impossible to judge one against 
the other. 

It discovered that nine of 42 
used a "reduced allocation" in 
early years, while eight had a 
device called “capital units" 
upon Which mnnag im ynt fees 
of three to four per cent were 
levied. 


to YEAR WITH- PROFITS 

10 YEAR UNrT-UNKED 

Top 5 


Top 5 


Surrender values after 5 

years 

Surrender values after 5 

years 

Total premiums paid: £3,625 £ 

Total premiums paid: £3,625 £ 

Eagle Star 

3415 

Equitable Ufe 

3,364 

Standard Life 

3276 

Eagle Star 

3.189 

Scottish Amicable 

3,030 

Scottish Life 

3.184 

Nttwtah Union 

3,011 

Barclays Ufe 

3,127 

CIS 

3.003 

Scottish Amicable 

3,120 

Bottom 6 


■ . Bottom s 


• NW 

2£44 

Axa Equity & Law. 

'2,317 

ftoyvl Ufe , , . 

2j25t 

Guardian 

2331 

London Life 

2.297 

Reliance Mutual 

2,580 

posh 

2.408 

Irish Ufe 

2.639 

Legal & General 

2.444 

London & Manchester 

2.685 

lO YEAR UNVHSED W-P 

25 YEAR WITH-PROFITS 

Top 5 


Top 5 


Surrender values after 5 years 

Surrender values after 5 years 

Total premiums paid: £3,625 £ 

Tote! premiums paid: £3,625 £ 

Equitable 

3390 

Clerical Medical 

2,720 

Abbey National 

3,045 

CIS 

2329 

GA Life 

3305 

Scottish Mutual 

2,516 

Norwich Union 

3,000 

GA Ufe 

2,433 

Standard Life 

2,998 

Provident Mutual 

2,365 

. .Bottom 5 


Bottom 5 


Axa Equity 4, Law 

2317 

Pearl 

1348 

Guardian 

2331 

NPl 

1.407 

London & Manchester : 

2.695 

Royal Ufe 

1,503 

Clerical Medical • • 

2,740 

Colonial Mutual 

1,739 

Sun Life . 

2,769 

Legal & General 

1,701 

25 YEAR UNIT- LINKED 

25 YEAR UNfTlSED W-P 

Top 5 


Top 5 


Surrender values after 5 years 

Surrender values after 5 

years 

Total prermxns paid: £3,625 £ 

Total premiums paid: £3,625 £ 

Scottish Mutual 

2334 

Equitable Life 

3344 

Barclays Life 

2,480 

standard Ufe 

2,487 

Norwich Union 

2,422 

Friends Provident 

2,470 

Abbey National 

2.403 

Norwich Union 

2,422 

Midland Ufe 

2396 

Abbey National 

2,403 

Bottoms . 


Bottom 5 


ASad Dunbar * 

1300 

.MOM 

1,660- 

•ftfehUfe 

1380 

Guodtan 

1,839 

■ VtCtYV 

1360 

Area Equity & Law 

1,920 

. Laurenfen Life 

1,700 

Cterictf Mecficai 

1.970 

Abbey Hte- ■ 

1.730 

. London & Manchester 

2357 


One company reduced 
investment returns for early 
leavers, one set penalties on 
premiums outstanding, anil six 
had cut both allocations of 


units and investment returns. 

■ All tables based on OPT 
statistics. Total premiums of 
£3,625 indude £625 of accumu- 
lated interest 


IO year unit-linked plans: £50 a month 


End of 

Accum'd 

Effect of 

Surrender 

Surrender 

Life office 

year 

premiums £ 

chapes £ 

.penally £ 

value £ 

Average results f 


1 

624 

222 

198 

204 


2 

1.285 

308 

184 

603 


3 

2,016 

396 

151 

1,469 


4 

2.792 

498 

132 

2,162 


5 

3,625 

610 

106 

2309 

Maximum surrender values 

Equitable Life 

1 

624 

35 

1 

588 

Equitable Life 

2 

1,295 

79 

0 

1,216 

Equitable Ufe 

3 

2.016 

128 

2 

1,886 

Equitable Ufe 

4 

2,792 

188 

3 

2,601 

Equitable Ufe 

5 

3325 

255 

6 

3364 

Minimum surrender values [ 

(Several offices) 

1 

624 

300 

324 

0 

Confederation Lite 

2 

1,295 

439 

856 

0 

Axa Equity & Law 

3 

2,016 

715 

353 

948 

Axa Equity & Law 

4 

2.792 

1,001 

184 

1,607 

Axa Equity & Law 

5 

3,625 

1312 

-4 

2317 


This offer notice is issued in compliance with the requirements of and has been approved by The Internationa] Stock F^rhangp 0 f the United Kingdom and the Republic of Ireland 
Limited (the “London Stock Exchange') pursuant to Section I$4(IXa) of the Financial Services Act 1986. This offer notice does not contain full information about Schroder Japan 
Growth Fund pic and should therefore be read in conjunction with the Listing Particulars dated 7 June, 1994 (the ‘‘ Lining Particulars') which alone contain full details of Schroder 
Japan Growth Fund pic and of the Ordinary Shares and Warrants available under the Offer for Subscription (the “Offer”)- Application has been made to the London Stock Exchange 
for the under mentioned Ordinary Shares and Warrants to be adnwrrwt to the Official Tie It is expected (hat fisting will bec o me effective and that ttralmp in (he Ordinary Shares and 
Warrants separately will commence on Monday 1 1 July, 1994. 


SCHRODER JAPAN GROWTH 

FUND pic 


( Incorporated in England and Wales under the Companies Act 1985 with registered number 2930057 ) 

Placing and Offer for Subscription sponsored by Smith New Court Corporate Finance Limited 
of up to 125,000,000 Ordinary Shares of lOp each (with Warrants attached on a one for five 
basis) at an issue price of lOOp per share payable in full on application 


Schroder Japan Growth Fund pic is a new investment trust 
which will aim to achieve capital growth from an actively 
managed portfolio principally comprising securities listed on 
Japanese stockmarkets. The objective will be to achieve 
growth in excess of the TSE First Section Index over the 
longer term. 88,000,000 Ordinary Shares (with Warrants 
attached) are the subject of a firm placing and 37,000,000 
Ordinary Shares (with Warrants attached) are being offered 
to the public under the Offer for Subscription. The Offer has 
not been underwritten. 

Copies of the Listing Particulars and the Mini Prospectus 
are available for collection during normal business hours 
(9.30am-5.30pm) on any weekday (excluding Saturdays) up 
to and including 21 June 1 994 from any of the following: • 

Schroder Investment Management Limited 
Senator House 
85 Queen Victoria Street 
London EC4V 4EJ 

Bank of Scotland 
New Issues 
Apex House 
9 Haddington Place 
Edinburgh EH7 4AL 

Smith New Court Corporate Finance Limited 
Smith New Court House 
20 Farringdoo Road 
London EC1M 3NH 

Bank of Scotland 
New Issues 

38 Threadneedfe Street 
London EC2P2EH 

In addition, copies of the Listing Particulars and the Mini 
Prospectus can be obtained, by collection only, for two 
business days from and including 8 June 1994 from the 
Company Announcements Office, the London Stock 
Exchange, London Stock Exchange Tower, Capel Court 
Entrance off Bartholomew Lane, London EC2. 
Applications for Ordinary Shares (with Warrants attached) 
should be made by completing the attached application form 
and returning it by post or delivering it by hand to Bank of 
Scotland, New Issues, Apex House, 9 Haddington Place, 
Edinburgh EH7 4AL or by delivering it by hand or by courier 
only to Bank of Scotland, New Issues, 38 Threadneedle 
Street, London EC2 so as to be received by 10.00 am on 
Thursday 30 Jtsie 1994. 


r 


Sehroder Japan Growth Fund pic 
Application Form 


IMPORTANT: Before completing this Form you should read the Listing Particulars relating to Schroder 
Japan Growth Fund pic. 

Applications most be for a minimum of 2,000 Ordinary Shares (with Warrants attached) and thereafter in 
multiples or 1 ,000. 

This form should be sent by post or delivered by hand to Bonk of Scotland, New Issues. Apex House, 
9 Haddington Place, Edinburgh EH7 4AL or delivered by hand or by courier only to Bank of Scotland, 
New Issues. 38 Thread ne ed l e Street, London EC2. The form mist be compieicd using BLOCK CAPITALS 
and in ink. 


1/We offer 10 subscribe for 


Ordinary Shares (with Wanmis attached) at loop each 

1 


in Schroder Japan Growth Fuad pic on the wins and subject to the coodhiow of app&atkm set out in the listing Parncutm 
dated 7 June 199*. 


and I/We atredibdow a dbeque or banker’s draft for the oraount payable, namdy I £ 


(The figures in the above boxes must be the game] 

please use block capitals 


Mi/Mrs/Mm or Tide 


Surname 


ForcuamctsHia full) 


Address (in Full) 



PoStCoJC 




Date 


1994 I Signature 


□ 


Pin your cheque or banker's draft for the amount drawn above made payable to “Bank rf Scotland A/C 
Schroder Japan Growth Fund" and crossed “Account Payee Only Not Negotiable'’. An application 
may be accompanied by a cheque drawn by a person other than the applicants) but any monies 
returned wiD be son by crossed cheque in favour of the above named appbcanL 


The boxes below must be co m plet e d if there are joint appheanta. 


MriMn/Mtss or Tide 


Foraamefs) fm fuD) 


Surname 


X, 


Signature 



MtfMrVMbs or Title 



Forenames b) Cm fuflj 






Surname 







Signature * 



MrfMrs/Mba or Title 


Forenamets) (in full) 


Surname 



IV WEEKEND FT 


£ 70,000 

FORA 

MINUTE'S WORK 

YOU CAN 
TAKE IT OR 
LEAVE IT. 


For oil you affluent investors out there, TfceSNrfi 
this will be of considerable interest. 

For instance, if you have JET million to 
invest you eon earn an impressive 7% gross 
p.a. to be exact. 

The only effort you have to make is to 
pick up the phone or dip the coupon, tuck it away in our 
offshore Sterling International Gross Account, then jit back, 
and let your money go to work for you. 

And you can rest assured your investment is secure. 
AU deposits are 100% guaranteed by Woolwich Building 
Society? 

Not only that, the beauty of this account is that it gives 
you instant access to your money. So, you're free to withdraw 
all or part of your investment anytime you like with no 
penalties at all. 


Ml Ora 


BAIANCE 

8 A 1 E 5 

C 500 -E 9.999 

529 % 

CIOLOOO - E 39.999 

6 j 00 % 

£ 40 X 00 - 809.999 

410 % 

000.000 -OA9.999 

6 X 0 % 

£ 250000 -£ 999,999 

423 % 

0 , 000 , 000 . 

200 % 


To find out more, call us on 0481 
715735 during weekly business hours, 
alternatively fax us on 048T 715722 or 
dip the coupon. 

So put your money to work as soon as 
possible: it would be a grass mistake not to. 


[~ I'd like 

□ Plane send 

Signed 

a better return on my money | 

mo daloib of the Staffing tofcmctfionai Grow Aocount. j 

| Mr/MiVMWMj 

_ | 


! 



Te|/FaocNo.. 


FT SB 


■ a chc 


L 


WOOLWICH 

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fahm to: Waaltneh Gummy limited. 90 Sax 341 . (a To n uflt Hmau, 
las Bongos*, Sr Pater Port, Goeraay GY 1 3 UW. 


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' t i*, ■ it tosn i . u.i aipmb-mw. n i i nu«ii.>i p |i..i< — 4u— — . rei. c w w . ■>. 


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DIRECTORS’ SHARE UtAKSAeTIONS IN THEIR 
OWM CO-PAMES {LISTED 8 U W 


Comparer 


doctor S hores 


VteU* 


No Of 
ift ect ore 



btotetlBMK-Vfcnilfesete*! 
teLtoyteMOa. Ht mted fwBm 
Hama ltac opM natal ftrSjare 
■totortete, MretlfjrlrerareraaSlS*,! 


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irawpn^. 

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CM sUnti tea* 


‘htemUlH *Mrektei*tra.ttt - tata|fcUrebrtamt i 


lUtteteabi 

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SALES 

Cbreraont Qmnts 
Cornwall Paritef "A" . 
Courtaukte. 
GRHokflngs. 
Madariam Group 
Mayflower Corp _ 
Moriand&Go. — 

Quids Group 

Rautars 


Taxt 

-HGod 
Ctan 
.LSHI 
■ PPiP 
. EngV 

-Brew 

Dist 

-Mda 


Rotfo A Notan Comp 
Salisbury, J 
Storehouse 

Ulster TV. 

UnSever — 
Whatman - 



.FdMa 

— B 19 


5.000 
ASJ00O 
armnn 

454.500 

7,400 

21&7S2 

7.000 

50.000 

10.000 

4.000 
153,030 

2.153 

2*370 

12300 


17 

71 

102 

281 

17 

124 

35 

95 

49 

116 

15 

331 

13 

284 


PURCHASES 
Ashley Group. 


AsNey Group (CRCP) BM&M 


70O000 

75,000 


49 

35 


Barr & WaSacn Ar*d — 

LSrs 

2,000 

T1 

i 

Bactcanham Group — 

Eng 

10QXXX} 

19 

1 

Boots 

RttG 

2X00 

11 

1 

Corporate Sanriees — 

SSer 

23,020 

12 

5 

Demrttifst Group 

Text 

169^60 

232 

3 

□ec&ocomponanai — 

Dbt 

S JXJ0 

24 

1 

Hakfri Hok&ngs 

.Brew 

10(U»0 

62 

2 

Horace Sate Apprl — 

T«t 

30X00 

23 

1 

MTV Group 

MdM 

20X100 

27 

1 

Hughes fTVJ.) 

FtatG 

2O000 

15 

1 

Kingfisher 

BetG 

7,143 

37 

1 

Kynocft Group 

Ulf. 

200,000 

48 

1 

Ufa Sciences Inti 

Hth 

I^SI^SO 

1.581 

7 

L'don inau Martcat 

tnsu 

12.000 

11 

1 

Mortand & Co 

^Brew 

2 JOOO 

10 

1 

RTZ 

Exfii 

7,850 

65 

2 

Shtefidd (naXtas 

—BM&M 

20.000 

47 

1 

Urtigrxp 

BMSM 

aajooo 

15 

1 

WiSa Cartoon 

insu 

10.000 

16 

2 


VMua depress'd to ante. Tbto tat contains ta teeraettona, tMteSng t 
epdonaniHOO*«4»eq u ert»ao>d.to«hawfcMewrEiaO00Lln ro BT ia tt on 
lha Srodc Exchange Jam 6-10 1BB4. 

Sowte; Otectus Lid. The Hide Track. Ednburgh 


Directors’ transactions 


Every year as summer begins, 
the onwiher of deals by directors 
farila off TbOS, it is TmiMaia? to 
note a steady number buy in g at 
present. 

□ Seven members of the board at 
Life Sciences International, a 
maker of scientific and hospital 
equipment, took the opportunity 
offered by a dip tn the share 
price to buy stock at I17p. The 
largest «ing» p urchase was by 
Sir Christopher Bland, previ- 
ously the chairman of London 
Weekend TetavUon. who bought 
lm to mare dou ble his hold- 
ing. 

O BiiMw Holdings used to be 
known as Haskins Breweries. 
Over the past year It has had a 
complete change of management , 
and its share price has beg un to 
perform better. Directors bought 
last summer at 55p and have 
been back in the market again. 
ChiunDSD Hbwsrd Hodgson uni 
Brace McGuire acquired 50,000 
each at around 82p. 

□ DewMrst Group, a clothing 
and toiletries company, featured 


in thin column when vice-chair- 
man James Dewhirst bon 
stock in May. The share pi 
has moved very little since then 
and another two directors have 
taken the opportunity to get into 
the market Chairman Timothy 
Dewhirst and Robin Hassell, an 
executive director, bought 120300 
and 194)60 respectively at I23p. 
Timothy Dewhirst now he 
more than 43m while HorseH’s 
bolding is more than 850.000. 

□ Quicks Group, a motor distrib- 
utor. has enjoyed steady price 
increases over the past two 
years. In the summer of 1992 
Alexander Murray, the chief 
exec u tive, and direc- 

tor. and Fr ed e r ick Boyle bought 
stock around llOp. Timothy Fra- 
ney, a non-executive director, 
has taka the opportunity to sell 

yum tenrfc — Initially ffljp list 

September and latterly at !9Qp. 
He remains the single largest 
shareholder on the board with 43 
percent of the stock. 

Vivien MacDonald 
The Inside Track 


RESULTS DUE 


DMdaad(pf 

Comp*W 

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Saaor daa me Ftaal M. 



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n TO 

Mond* 


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Tuesday 

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Monday 

Monday 


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lMdsndsmchMiteprap«ihartmaftatadtasiyWsnort«satot»»- 

Repnre red accounts an not rarely mdtoda una teas 6 wsks to«r 0 » board nesting to 
appro* afany nafeJl 1st quartarty. 4 hid quartwly. * 3rd Ouartsrty 


TAKEOVER BIDS AND MERGERS 


TELEPHONE FREE ON 

gg 

0800 30 33 30 

y&ur ffwcuxutbee- 
certainty 



OonsreV 

bum 

VMM Df 
Ud pw 
**•- 

Malm 

ptea- 

Price 

bra*# 

CM 

vu» 

raw 

Bar* 

■tor 

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MOM in p*K» tern atanto KteCtof 

1 V 11 IB 3.70 

Stoogh Ei lire 

CbRMrn Rato 

242" 

243 

205 

18.90 

CtT 

Poionport Vtanoo 

187 

157 

113 

3230 

Em llteah— 

Grate Souftram 

600- 

817 

475 

71.11 

SonAca Coqi tat 

Do. Prl 

239* 

238 

180 

1&28 

Saretaa Carp tat 

Jaareraa 

12714 

120 

88 

1238 

BSQ 

UtSMO 

IBS 

148 

182)6 

1S9Q.0 

EntarprtaaCa 

Unraad ? 

219 

218 

15S 

26.70 

McKacftnia 

NMC9 

18955 

153 

159 

11300 

Britton 

Spate W.W) 

900*S 

740 

740 

4800 

Itoabrc 

Spate (J.WJ 

1000- 

740 

740 

5200 

Mtetal 

Tateaa 

285* 

271 

243 

422 

London Ckjr 


The week ahead 

Into the black 


Since the £l«*m pre-tax loss 
laat time, British Steel has 
started the long climb back 
into the black. On Monday, 
even the most pessimistic of 
analysts is expecting a pre-tax 
profit of £60m for the year to 
March, and forecasts range as 
high as £ 95 m. Most believe a 
wuriwHriwp d final dividend of Ip 
per share is likely, making a 
total of 1.5p for the year. 

□ Wessex Water is expected to 
draw the sector’s reporting sea- 
son to a dose on Tuesday with 
the biggest dividend increase 
of all the top 10 water compa- 
nies. Forecasts are for a pay- 
out of between 2&5p and 24p, 
against last year’s 2 lJ>p. The 
pwin iyyiMg, as uith its fellow 
c ompanies, will be cost savings 
find the performance of the 
non-regulated waste manage- 
ment business. Wessex is 
expected to score highly on 
both counts. Profit is estimated 
to rise by 20 pee cent to about 
flOSan. 

□ Bast Midlands Electricity 
has prepared the market 
already for a disappointing pre- 
tax profit figure for 1993/94. 
The total win be depressed by 
£l30m as a result of post-priva- 
tisation acquisitions which 
have performed disappoint- 
ingly. That will leave pre-tax 
profit, to be announced on 
Monday, at around £50m to 
£60m. The dividend should be 
unaffected at about 22.7p. 

□ Man web, which distributes 
electricity in north Wales and 
Cheshire, is expected to 
announce pre-tax profit of 
about £i%*m to £130m on Tues- 
day. The dividend should be 
about 22£p. 

D Hazlewood Foods is expec- 
ted to announce an anmmi pre- 
tax profit of up to £50m on 
Tnesday. down from the previ- 
ous year’s £55m on turnover of 


Units stum price'*«*£ 
500 



o«t to** . 
Sauna: omssam 


CttLftm. Last year’s figure fe 
unlikely to be matched not 
after taking out exceptional 
charges related to rertntcb* 
ing and the sate of a Dutch 
subsidiary. 

C Wednesday sees the fiat 
annual result from spedattit 
chemicals group BT? afoot it 
acquired most of aflfog Iffg 
in June last year. The MTK 
businesses have been .OQnrfag 
through well and analysts 
expect pre-tax profit to hare 
jumped from {20.5m to around 
£2Sm. The MTM deal was 
funded by a rights issue, which 
will hold back growth is 
underlying earnings per Shan 
to about 15 per cent Forecasts 
for this year very widely, so 
the shares will be sensitive to 
comments about present trad- 
ing. 

□ Rothmans International, the 
tobacco group now shorn of its 
luxury goods Interests, is 
expected to report a Unrer 
nnnii.ii profit on Thursday doe 
to the £48m costs associated 
with the demerger of Punhffl 
BZW, the broker, is for ec a stin g 
a pre-tax figure of £440m, down 
from a pro forma £47Qm the 
previous year. 


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FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 


FINANCE AND THE FAMILY 


WEEKEND FT 


V 


In from the cold at last 

Mark Suzman on the resurgence of the Johannesburg stock market 


D espite South 
Africa's years of 
isolation, the 
Johannesburg 
stock market is no stranger to 
foreign investors - indeed, the 

exchange was set up largely at 
the behest of British financiers 
involved in thq gold industry 
at the end of the last century. 

Rather than speculators, 
howe ver, the market now is 
trying to attract the new mas- 
ters of the global market place: 
fund managers and their inves- 
tors. 

Helping the drive is the fact 
that, in a sharp turnaround. 
South Africa now is regarded 
as an ethical investment by 
many of the individuals and 
institutions that it for 

its racial policies during the 
apartheid era. 

It is not just changtog politi- 
cal considerations, however, 
that have led to the increased 
interest in the market. The 
JSE has performed very 
strongly over the past 18 
months, providing attractive 
returns virtually across the 
board. 

And although price/earaings 
ratios and yields are near his- 
torical highs by local stan- 
dards. the market remains rel- 
atively undervalued when 
considered in a global context. 

The JSE’s recent inclusion 
on several global market indi- 
ces - most notably the Interna- 
tional Finance Corporation, 
which tracks emerging mar- 
kets - also has boosted confi- 
dence. Many funds which base 
their portfolios around such 
indices are expected to shift 
their weighting in favour of 
South Africa over the next few 
months, with a potential wind- 
fall of billions of dollars. 

Yet, although classified as an 
emerging market, the JSE is 
better regarded as a re-emerg- 
ing market It is a mature body 
with a wide range of stocks; a 
market capitalisation around 
$160 billion, putting it just out- 
ride of the world’s top 10; and a 
well developed regulatory and 
legal framework. 

There are, however, a couple 
of peculiarities about the mar- 
ket of which the prudent inves- 
tor needs to be aware. Most 
important, and confusing, is 





7- 



■ “ toqs.aa-.. no 

- ... 

the country's two-tier cur- 
rency. 

Non-residents invest using 
the financial rand exchange 
rate; tins operates at a variable 
discount (now around 25 per 
rwit) to the Mimmarriai rand, 
the country's mam trading cur- 
rency. 

Intended originally to deter 
foreigners from withdrawing 
their ca pital during the sanc- 
tions and dis in v e stment era, it 
also provides an attractive 
incentive for new investment 
Because all dividends are paid 


in commercial rands, foreign- 
ers gfcanrf to augment substan- 
tially their yield on local 
shares. 

Nonetheless, the currency is 
quite volatile, especially dar- 
ing times of political uncer- 
tainty, and investors could just 
as easily see their capital g*»ir>g 
negated from currency depreci- 
ation, even while yields soar. 

Another problem with the 
JSE is its low liquidity, annual 
turnover last year amntmfavi to 
only 7 per cent of market capi- 
talisation, far below global 
norms. This is, largely, the 
result of two factors: the exis- 
tence of large conglomerates 
unwillmg to trade their share- 
holdings; and exchange control 
restrictions which make it ille- 
gal fin: domestic investors to 
send funds abroad, so encour- 
aging Orem to retain local blue 
chips. 

This can be irritating for for- 
eigners who, sometimes, find 
their stocks have low tradeahil- 
ity. But toe exchange authori- 
ties recently have made a num- 
ber of proposals to try to 
improve toe situation. And 
with furtha - pressure coming 
from both inside and outside 


South Africans come to town 



ritisb Investors will 
soon have access to 
their first South 
African investment 
trust The Old Mutual South 
Africa trust, run by the repub- 
lic's largest life and fund man- 
agement group, will invest in 
a wide range of local concerns, 
although with a Mas towards 
industrial and financial stocks 
and smaller and medium sized 
companies. 

This is because some of the 
largest best-known South 
African companies also have 
shares traded on the London 
market making them easily 
accessible already to UK inves- 
tors. Bnt when it comes to 


smaller companies. Old 
Mutual thinks its team of 42 
analysts can provide value for 
overseas investors with its 
stock-picking approach to 
investment management. 

Small and medium sized 
companies may also have more 
to gain from toe restructuring 
of South Africa's economy as 
it reintegrates with the rest of 
the regkra and the world. 

Old Mutual says the fund is 
extremely unlikely to hold 
gold stocks in toe foreseeable 
future. So, if you are looking 
for a play on commodities, you 
would do better to pick one of 
the specialist gold or mining 
funds. 


Institutions are expected to 
be the main investors in this 
new fond, but the minimum 
investment (£1,000) has been 
set low enough for smaller 
investors to get involved, too. 
The trust is not expected to 
provide a particularly high 
yield, though - the Johannes- 
burg stock exchange now 
returns about 2 per cent 
Meanwhile, anyone prefer- 
ring a unit to an investment 
trust will not have long to 
wait Save & Prosper plans to 
launch a South African unit 
trust at toe start of July. 

Bethon Hutton 

■ Offer details, page VJ1 


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the country, it is likely thing s 
will continue to improve. 

Even with these problems, 
though, the JSE remains a rel- 
atively good bet. Just as a cen- 
tury ago, the most popular 
investments among foreigners 
are gold stocks, which tend to 
be relatively undervalued com- 
pared with their American and 
Australian counterparts and 
remain a good hed ge against 
inflation. 

But several industrial 
shares, particularly those in 
building and construction, 
have been performing very 
strongly recently because of 
toe expected rise in spending 
on housing under toe new gov- 
ernment's reconstruction and 
development programme. 


A re there any reasons 
to be cheerful about 

the UK government 
bond market? After 
all, it keeps on falling, despite 
the occasional respite, and 
probably has still further to 
fab 

The answer depends on 
whether inflation and interest 
rates remain low. Even then, 
the battered investor might 
take a lot of persuasion to 
return to gilts. 

The yield on long-term gilts 
has risen by more than 2 per- 
centage points since toe begta- 
ning of the year, to 8% per 
cent, and their price has 
crashed by more than 20 per 
cent. Why? “It was just an 
unfortunate combination of 
events. There's no angle expla- 
nation,” says Ian Shepherdson, 
an economist at Midland 
Global Markets. 

“The initial sell-off began 
when thg ha d e ? funds e nded 
their feeding frenzy after push- 
ing bond prices up to unsus- 
tainable heights and decided to 
take their profits and move 
on.” Hedge funds are large 
pools of speculative capital 
which are switched between 
fbmnriai markets to exploit 
short-term opportunities. 

Then came a succession of 
events, beginning with the 
move on February 4 by the 
Federal Reserve, the US cen- 
tral bank, to put up short-term 
interest rates. 

“This signalled the end of 
the low interest rate era. 
Funds Sowing out of OS sud- 
denly changed direction,” says 
one City analyst. “Investors, 
afraid that the dollar would 
soon rise, quickly dropped 
bonds denominated in Euro- 
pean currencies.” 

The markets were particu- 
larly unnerved by the fact that 
the interest rate rise came 
when most inflation in dicator s 
were pointing downwards. 
“That suggested that the 
authorities knew something 
t he mark ate iWH not," says She- 
pberdson. 

The UK base rate cut on Feb- 


Gilts fall on 
hard times 

Graham Bowley on why investors 
may well remain wary of bonds 


ruary 8 was taken very badly 
by the gfll market “Maybe it 
was justified on ftmdamental 
grounds,” the analyst says. 
“There had been some decent 
activity numbers. 

“The problem was toe timing 
and the subsequent revelation 
that Eddie George {governor of 
the Bank of England] didn't 
want it It was seen as blatant 
political manoeuvreing.” 

Next came anxiety over ris- 
ing earnings figures, which 
were seen as a precursor to 
rising inflation. Finally, there 
was the Conservative party’s 
protracted political woes, 
which added to uncertainty 
and scared off many investors. 

Many believe this succession 
of “unfortunate” events has 
changed the fundamental 
nature of the gilt market City 
analysts say investor confi- 
dence has been damaged in a 
way they have never seen 
before. What, then, will it take 
to restore confidence in gilts? 

O ne answer comes 
from Simon Briscoe, 
an economist at S.G. 
Warburg: “There 

hag tO be Hm ti niiml low fnfla. 

tion and low average earnings 
numbers, more subdued con- 
sumer activity, and a slow- 
down in toe housing market” 
Data published last week 
showing a drop in earnings, 
subdued growth in toe retail 
price index and a marked fall 
in construction orders, was 
duly welcomed by gilts. 

“If this continues, tiiwi there 
is no doubt that current yields 



Kenneth Clarice.. .pledge 

are extremely attractive,” says 
Briscoe. He is confident that 
inflation and interest rates will 
remain low for toe remainder 
of the year, although he thinks 
the outlook for gilts is less 
favourable beyond that 

Another necessary condition 
for a recovery in gilts is a slow- 
down in the US economy in 
order to retard the rise in offi- 
cial US interest rates and 
dampen any propensity the 
dollar might have to rise. 

Investors also have to be 
convinced that all the specula- 
tive positions have finally been 
unwound. “That will probably 
happen when speculators come 
to show their half-year results 
at toe end of June,” says Ste- 
phen Lewis, of London Bond 
Broking. “Investors also have 
to build up large amounts of 
cash before they are ready to 
invest - and that will take a 
month or two yet." 

Analysts agree the UK's 
political uncertainty must end. 


Recent talk of tax cuds to boost 
toe standing of prime minister 
John Major “would be the last 
thing toe pit market wants." 
another analyst says. “It would 
not smack of sound political 
management.” 

There are signs of optimism 
among some investors, though. 
B any Woolf, investment direc- 
tor at Mercury Fund Manage- 
ment, says: “We have been 
gently adding to gilts at this 
level. All bond markets are 
going to r emain hi ghly volatile 
but, provided we are right on 
the fundamentals, there's 
money to be made in gilts.” 

T he problem is that 
even if all these con- 
ditions are met, the 
large institutional 
investors with the funds to 
change market sentiment may 
still be wary of committing 
themselves after having their 
fingers burnt so badly. 

In his Mansion House speech 
in toe City this week, Kenneth 
Clarke, the chancellor of the 
exchequer, pledged that the 
government would not create a 
new boom and bust cycle gen- 
erating a “fraudulent, infla- 
tionary, feel good" factor 
among voters. “We will cut 
taxes again,” he said, “but only 
when we can afford to do so.” 

The impact of Clarke's words 
was softened, however, when 
George warned that Interest 
rates would have to move 
upwards at some time in toe 
future “to maintain the [eco- 
nomic] expansion at a sustain- 
able pace”. This might hardly 
have been news, but it would 
not have encouraged the gilt 
market. 

There are reasons to be 
cheerful, and the chancellor 
will continue to do his best to 
keep investors' spirits up. But 
with the market in its present 
nervous state, needing several 
pieces of good news to offset 
every single bit of bad news, it 
will take a lot of good news to 
convince investors to take 
their first tentative steps back 
into gilts. 




a 




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VI WEEKEND FT 


FINANCIAL TIMES 


FINANCE AND THE FAMILY 


Winners? They just lost less 


UK EQUITY OROWTH 


Winners 

96 change, 1/2/ 

Premium Ufa Growth 
Famty Trust 
Fidelity Recovery 
Evermore Recovery 
Arkwright Recovery 

MGM Special SitnsGth 
Pembroke 
Aberdeen Portfolio 
MSG Capital 
Framflngton Capital 

w /m ‘ 


UK EQUITY OENEBAL 


Whaicre 


1 /& 94 

% change, 1/2/94- 

1/6®4 

-8.7 

RcteCty UK Reverse Indx 

ia4 

-9.7 

Govett MIS UK Bear 

125 

-9J 

Mercury WT UK Bear 

12.8 

-103 

GAM UK Diversified 

-7.0 

-10 A 

Fleming Balanced 

-9^ 

-10.7 

M&G Midland a Gen 

-105 

-10J 

Fleming Capital 

-12^ 

-10J 

Pfkpim UK Inc & Gth 

-13-0 

-11.4 

Pfanbroto Balanced 

-ia3 

-11.5 

M&G Second General 

-13^ 


UK EQUflY INCOME 

WnneTt 

% change, 1/2/94- 176794 

aenfriare Vfighr Inc -9.2 

Chartrd Asset UK Inc -11.9 

Exeter Ugh Inc -12J0 

St Vincent HI Inc -1<L5 

Pram Lf Mrrthfy Inc -12 JS 

Maiden Gertrl -12A 

MSG Equfty Inc -1&2 

LSC income -113 

FrtoKte Prov Stwrdahp Inc -133 
CH Monthly Inc -13.7 


Scheherazade Daneshkhu looks at 
unit trust performance this year 


T o speak of unit trust 
"winners" since the 
UK market peak In 
February is to talk in 
entirely relative terms. The 
so-called winners have simply 
lost investors less money than 
other unit trusts. 

Since the Federal Reserve, 
the US central bank, raised 
short-term interest rates on 
February 4, the only sectors 
(see table at right) to have 
been profitable, on average, 
have been Japan and money 
markets. 

The Japanese market has 
turned since a period of 
decline, but analysts differ 
about how quickly it may 
recover. The markets of the 
Far East generally have been 
in decline since February, so 
Japan’s performance helped to 
prill up the Far East (mrhifling 
Japan) sector compared with 
Far East (excluding Japan). 

Europe bas been less of a 
disappointment than other 
parts of the world, with 
email er companies delivering 
the stronger performance and 
a gradual fall in interest rates. 

The Fed’s move was 
designed to pre-empt a rise in 
inflation, fuelled by the poten- 
tial of a stronger than expected 
recovery, but it upset nervous 
US and UK markets. The Dow 
Jones index fell by 5 per cent 
between February 1 and June 
1, recovering from a drop of 
almost 10 per cent at the begin- 
ning of ApriL 

The FT-SE-A All-Share fell 
by just under 15 per cent over 
the same period, after an 
extended period of strong per- 
formance. The bottom of the 
unit trust performance table is 
inhabited by UK funds, with 
the notable exception of UK 
gynaQpr companies. 


CW cap 




.-2X.5 
- 22.0 
- 21.2 
: >aa7 

/ -ano . 
".-aw ' 

•204 

'.'* 203 ' 

-203 
' -203 


UK BALANCED 

Winner* 

% change, 1/2/94- 

Rdeftty CR UK 

HC SL Securities 

Hypo F8G Hi he 

Newton Distributor 

GRE Balanced 

Morgan Grenfell Hi Inc 
CU PPT MntMy Inc Plus 
BG Managed Fund 
BWD Bal Portfofio 
Sun Life Mod Ex Inc 


-2L9 

jpligktes^i.y •' •'•"■-M3 

• -205 
--202 

■' - 20.1 ' 


. • /teeare- • • “ 

Gcvetf MJS Grtt UK Indx ^BJD. 
Gsrfmcre Shaw UtEtfee *24.1 
SWias. Ufa Equfty . 

RywArroWa W \»Co& -2 i». 
FhfrtotfonlncAQft* ‘ 

= iteSamtwItneAQh 
Legal & Get UK Tact >y -206 ; 
■ Abbey Gertoaf '-205 

Mayflower BritishUlra -203= ' 

UK SMALLER COS 
Wiiwera 

% change, 1/2/S4 - 1/B/94 

Guinness R TB Emarg Cos -43 
Guinness R TB Smrf Cos -4.6 
Evermore SmBr Cos -63 

Waveriey Penny Share -63 

Granvflle Small Cos -63 

Lloyds Bk Smflr Cos & Rcvry -6.6 
H3I Sam UK Emerg Cos -6.7 
M&G Smflr Cos -6.7 

Dtscrsttonary Unit -73 

Gartmore UK Smflr Cos -7.8 


? HURNrOK -233 . 

•.ABJkf Dunbar t&W. .*. - 2 Z .1 

;/• -223 

, ■ . ! • s? 

..Masflo O&fri -y *• New 
..MamttifeffJbc' . • -Zl> 

■ Sferietaki-i# -2T3 
"ABtecfrOartJW ffi toe ■ : j&A 
. PypetoaHre? • - .“ r % . -21.4 

UK GILT & FIXED MT 

Winners 

% change, 1/2/94-1/6/^ 

Mercury WT UK <3» Beer 11.1 

Govett MIS Git Bear 10.1 

Abbey Capital Reserve 14 

Burrage Shrt Dated Gilt -6i 

Whittfrigdate Shrt D GOt -at 

Britannia Lf Gilt & FI 44 

Invesco Pref Shares -94 

Aberdeen Git Inc -10.C 

Exeter Zero Pref -104 

Gartmore Pref -11.4 


Mercury UKSmSr Cos . -143 

Sun Ufe UK Smflr Cos Ptft -145 
ThmtanUKSnSrCOsOlv -144 
A1 Dunbar SecSmfe Cos' -14.1 
WetowortBSmfrCoaOiv -133 

ABed Dunbar Smflr Cos -13.7 
Abbey’ UK Growth- ' -13.7 

BarfcgUKSmllrCas -13L6 
GTSmBrCosOh -133 

Family Smflr Cos ■ -13 3 


Schroder Oit&Fl 

-20.1 

N&P G® &FI 

-IfljQ 

.WHtifagdBleGWGtfv 

-1M 

SG Bond ■ 

-18.7 

Prosperity G8t&. R 

-185 

Lngti&GenGK 

-1&5 

Edktexgh Pref Share 

-18^ 

Legal & Gen H 

-18J2 

Notwteh & Conv 

-185 

ManuLteGBt&B 

-18.1 


The tables on the left list the 
performance of the top and bot- 
tom funds in each UK sector 
over the period. 

A cursory glance at the 
funds which are not preceded 
by a negative sign (UK Equity 
General and Gilt and Fixed 
Interest) shows some good 
gains , of Up to 13.4 per ryyriL 

But a closer look reveals that 
all but one of these are reverse 
tnripx or “bear" funds, which 
use deriv a t i v es to deliver the 
Opposite of an index. 

In the UK Equity Growth 
sector, a noticeable number of 
the better-peri arming funds are 
recovery trusts. These stocks 
usually do wan whan an econ- 
omy is coming out of recession 
but are not usually associated 
with good performance in fall- 
ing mark ets. But Mary Blair, 
fidelity's product development 
director, believes the UK mar- 
ket has over-reacted in the 
degree to which it has dropped, 
and that recovery is stQl the 
dominant theme . 

“The markets have gone 
down because of fears that 
interest rates will go up but. 
ironically, that fear is because 
it looks as if the economic 
recovery is happening.'’ she 
says. "Small companies and 
recovery stocks are productive 
companies which benefit in a 
consumer recovery." 

Some of the over-reaction 
could be due to the use of trad- 
ing in derivatives. Since there 
are no futures contracts in 
smaller companies, the UK 
Smaller Companies sector has 
been insulated from the type of 
volatility associated with these 
instruments. 

George Luckraft, director at 
Carrington Pembroke (which 
changed its name recently 
from John Carrington & Co.), 


I II II II It 


IT! II ill 




GO WHERE THE GROWTH IS 



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Economies that in many cases are growing at a rate of 5% to 8%* a year. 
That’s two or three times the rate of gro w th in the west. Through crur ai«*»r 
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group. Save & Prosper has access to unrivalled expertise in the region. 
We believe that the three unit trusts below mu, together or individually, 
provide you with the means to tap the vast potential of the Far East. 

Japan Growth Funo invests predominantly in larger companies in 
one of the world's most successful economies, currently poised for further 
growth. la u n c he d in 1970, the Fund was one of the f ir st to invest solely in 
Japan and has been one of the top performing funds in the past 5 years** 
South East Asia Growth Fund established 15 years ago to 
provide exposure to companies in South East Asia excluding Japan. 
Original investors have so for seen their money increase in value by more 
than thirteen tiniest. 

Asian Smaiaek Companies Fund launched last year, focuses on 
the region’s^maller companies which can grow faster than larger companies 
but often are under-researched, providing undiscovered value. 

ACT NOW 

We believe the Far East is an essential part of any UK investor's portfolio. 
You can invest in any of the above foods from as little as £1,000 or £35 per 
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ring our free Moneyline. 


CALL FREE 0800 282 101 

^ 930 tun- - LOO pja. • 7 DAYS A WEEK 

^jonreo: FicmingB *»Rankedin top 26% of foods in its sector over 1,3 and S yean to L6.94. Source: Mkropa] 
f Oner hi bid with net ineome reinvested. (Owr $ years t<> 1334. £ 1,000 would have grown to £2,750). Souiwe MicropaL 


To: Save & Prosper Securities Ltd, FREEPOST, Romford JRMl IBB. 

Please send me deta i l s of Japan Growth Fund, Sooth East Asia Growth Fund and Asian Smaller Companies Fund- 

Surname Forenames 



Addnena 


Antonie 


TtifSTD) No Work Tel (STD) No 


So Sat to may caD and offer further information. 


, r £ OME CAN GO DOWN AS WBL AS UP AM) YOU MAY 

NOT GET BACX HIE FUU. AMOUNT YOU INVESTED. INVESTORS SHOULD BE AWARE THAI THE MASKERS 
IN WtfCH FU'CS CAN NVEST CAN BE HGHLY V0M31E EXCHANGE RATES MAY A1SO CAUSE 

*wE5TMavrrs to go down qr up. past performance s 
NOTACUPE TP FUTURE BEIURN5. SWE& PROSPER GROM* LIP IS A MEMBER Of IMRO AND IAUTRQ. 


SAVE & 
PROSPER 


THE INVESTMENT HOUSE 




believes that just as futures 
have helped to ma gnify fails in 
the UK market, they were also 
the driving force behind the 
strength of the market towards 
the end of last year. 

Two of the company's funds 
- Pembroke and Pembroke 
Balanced - appear among the 
winners In the UK Equity 
Growth and UK Equity Gen- 
eral sectors. Luckraft says they 
have not done as badly as oth- 
ers as some of the smaller 
stocks in them have delivered 
good performance and also 
because some stocks were 
shifted into oils in the past few 
months. Integrated oil has 
been the best-performing UK 
sector since the market peak. 

Given the recent turbulence 
in the bond markets, it is no 
surprise to find that the inter- 
national fixed-interest, UK gilt 
and fixed interest, and sectors 
exposed to holding s of bonds - 
such as the UK Balanced sec- 
tor - are all down. Bond prices 
had begun to drop before the 
Fed’s move and, as Graham 
Bowley ex plains on page V, the 
continued fall in bond prices 
indicates that Inflationary 


UNIT TRUST SECT OR PCItfORM ANCK - . 

chany 


Japan 

Money Market 


Far East Inc Japan 
UK Smaller Cos 
North America 
Fund of Funds 
International Equity Gth 
Co mmo d it y & Energy 
International Fined tnt 
Australasia 

International Balanced 
UK Gift & Fixed tnt 
International Equity Inc 
Investment Trust Units 
Far East Exd Japan 
Convertibles 
UK Equity Growth 
Financial & Property 
UK Equity General 
UK Balanced 
UK Equity Income 


fears are not yet over. But 
Luckraft believes that after the 
IS per cent fall in equities 
prices in the UK, it is not a 
good time to sell UK unit 
trusts. “It will be a quiet sum- 
mer but, at the end of it, when 


Averoqo 

Beat 

Went 

1.3 

10.9 


0.7 

1.3 

■87 

-6.9 

11.0 


-10.1 

•f.1 


-10.8 

-4.3 

■Hfl 

-11.2 

8.5 

•41.1 

-11.7 

-2.0 

-11.4 

-n.9 

•2.1 

•22.4 

-12.0 

•2.6 

•188 

-12.0 

-1.8 

-188 

-13.2 

-9.8 

-1M 

-13.5 

•5.4 

•218 

-13.8 

11.1 

-20.1 

-14.6 

-10.5 

-1 98 

-15.0 

-12.3 

-185 

-15J! 

0,4 

-243 

•16.0 

-12.1 

•202 

-18.7 

-8.7 

-22JS 

-16.9 

-0.7 

•238 

•17.2 

13.4 

•380 

-17.8 

-8.6 

-335 

-18.5 

-9.2 

-288 


interim results come through 
showing improved earnings, 
we could have a good end to 
the year.” 

■ All statistics firm hUcropal 
on an offer to tod. net income 
reinvested basis. 


Variable rates drop 


Although building societies 
did not react to February’s 
base rate cut of &25 per cent 
by reducing their standard 
mortgage rates, they have 
been reducing variable invest- 
ment rates; indeed, some have 
lowered these more than once. 
Others, such as Buckingham- 
shire and Manchester, have 
withdrawn their market-lead- 
ing postal accounts to new 
investors because of over- 
whelming response. 

While interest on variable- 
rate products has been drop- 
ping escalator bonds continue 
to be the “in" thing doe to the 
low cost of funds on the swap 


markets. Tltey are now offered 
by most of the mafor societies, 
the top payers being Birming- 
ham MMshtees (the only four- 
year term), Newcastle and 
West Bromwich. These bonds 
offer tempting rates hot 
should be viewed w longterm 
Investments as earlier access. 
If permitted, is costly. 

The sometimes exceptionally 
good rates offered in the fifth 
year may, however, he mis- 
leading and. in some cases, the 
average rate offered over the 
term does not match ordinary 
five-year fixed rates. The best 
average, from the Newcastle at 
835 per cent is also worth a 


look. If investors require gross 
interest. Confederation Bank 
Jersey offers a five-year bond 
p m tn a 845 ner canL 
Gross fixed interest can also 
be obtained from the Retail 
Co-operative Societies. There 
a n several offering rates 
above the 7 per tent mark. The 
CWS (061-833 2345) is offering 
up to 6 per cent fixed for five 
years and 7.75 for four years 
on sums from £5,006. The 
Brighton Cooperative Society 
(0273-606 722) offers up to 7.3 
per cent fixed for five years on 
as Bttie as £100. 

Christine Bayiiss, 
Moneybris 


HIGHEST RATES FOR YOUR MONEY 


Binfeg han Mttshim BS 
Britannia BS 
Leads & Hoback 
Notting ha m BS 


FfetOan 0902645700 Postal £500 545% My 

Capital Then 0638 391741 Postal £2.000 6X10% YJy 

Afcfan 0532 438292 Postal Cl MOO 625% Yly 

Post Dhict 0802 481444 Postal £25300 6.60% Yly 


Britannia BS 
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B ri t an fa MamatL Ltd 
Yorkshire Guernsey Ltd 


C o n soli dated Ufe 
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Smflfe 

mntofuu. sumas e/oTi 


Z n r~3S 


HJCA 
Capital Plus 
Classic Postal 


Int erna t i onal 

FfexMe hv 
Max Meed 
OSshora Key 


0538 391741 
0538 391680 
0800 500578 
0800 272505 


0438 744500 
0455 251234 
0372 742211 
0864 63337 


031 556 8235 
081 447 2438 
0800 717515 


0461 715735 Instant 
0534608060 60 Day 
0624 628S12 90 Day 
0461 710150 160 Cby 


081 940 8343 
081 940 8343 
0800 521548 
081 940 8343 
071 454 0105 


5.75K My 
6.41% My 
8.75KB My 
8A5KF My 


&00MF Yly 
7.35% Yly 
725% Yly 
7-20% Yly 


4.75% Yly 
4.75% C8y 
6.00% Yly 
625% Yly 


5.75% Yly 
BJK% Vffly 
6.60% Yly 
7.00% Yly 


Investment AiC 

Income Bands 
Capital Bonds H 
Rtst Option Bend 
Pan d ora s G© 


1 Month 
3 Month 
5 Year 
12 Month 


0,000 4.70HF Yly 

£2JXX> 5J3C%F Yly 

£2.000 &6Q*F Yly 

£2.000 7J»%F Yly 

£10,000 7.6Q%F Yly 


£30 «L25%G Yly 

££000 &S0*H MY 

£100 725SF 0M 

£1.000 &00%F1 Yly 


41st Issue 

7lh Max Linked 

5 Year 

£100 

SMtW 

0M 

5 Year 

C100 

3.00W 

0M 

CNWrens Bond F 

5 Year 

£25 

♦Win 

7J35%F 

CM 


77ils table cowsra major bants and SuSdtrjg Societies only. AH rates (except thoaA imriw „ 

Bonds) am shown Gross. F a Fixed Rate (ah other rales are variable) OM-intoS.r'IS? hnad * n 8 Guaranteed Income 
By Post only. A = Feeder accouit also required. B* 7 day loss of Intend JTS?. p S c *. on N - Net Rate. P*> 

£500 end above; 6 per cent on £25.000 and above. H=6.75 Q " S.75 per cent on 

220,000 and eb«e£oufce: MONEYFACTS, The Monthly Guide to Invesmrara’™] ???*””■> 6-40 per cent on 
North Wafeham. Norfolk. NR28 QBD. Readers can obtain an Introductory mnu ^^Mort gege Rates, Laundry LoM*. 

oy phoning 0692 500677. 


Who said your 
business cart 
have free bankng 

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gposspA? 

CaS 071-203 1550 duringoffice hours or 24 hoar Ime 071-626 0879 


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081 484 0814 

60 Oey 

£10.000 

6.60% 

Tty I 

North at Enghnd BS 

Ecfinbragh 60 

091 510 0049 

60 Day P 

£25,000 

7.00% 

Yly 

Britannia BS 

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0538 381690 

90 Day 

£1,000 

6.60% 

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0800 272506 

30999 

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FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 


WEEKEND FT VII 


FINANCE AND THE FAMILY 

Go private - if you can 

Bethan Hutton explains why it can be hard to get medical insurance 


S care stories about age 

discrimination in NHS 
hospital treatment may 
be making more elderly 
people think about private 
medical Insurance. Yet, while 
the government has encour- 
aged this in recent years by 
offering tax relief on medical 
premiums for those over 60, 
the last Budget cut the relief 
available to a marimnn i of 25 
rather than 40 per cent 
Medical insurance will be hit 
also by the 2L5 per cent tax on 
all insurance premiums due to 
be imposed from October this 
year. But one spot of good 
news for pensioners is that the 
tax is added before relief is cal- 
culated - so you end up get- 
ting tax relief on the tax ele- 
ment too. 

Relief is available to whoever 
pays the premiums, whether 
they are themselves the policy- 
holders or are paying for 
elderly relatives. 

The rules about which insur- 
ance schemes qualify for relief 
are fairly strict. Any plan 
which offers cash benefits for 
nights spent in NHS hospitals, 
or covers GP or dental treat- 
ment will not qualify. 

Changes announced last 
week mean that plans covering 
occupational therapy and a few 
other treatments are no longer 
excluded, but any scheme 
including alternative medicine 
will not be eb'gihte. 

Jan Lawson, a specialist 
adviser on medical Insurance 
with the Private Health Part- 
nership, says the biggest bar- 
rier for over-606 seeking medi- 
cal cover is not finding a policy 



which qualifies for tax relief 

but getting cover for existing 

conditions. 

By the thrn» they reach their 
60s or 70s, many people have 
minor medical problems 
which, in themselves, are not 
likely to le w d to any riMnm but 
could contribute to future 
problems that would require 
surgery or other treatment. 
These include such ocmdilions 
as mild high blood pressure 
and arthritis which, if it deteri- 
orated, could require a hip 
replacement 

Most insurers operate a mor- 
atorium policy, if you have had 
a medical problem in the past 
but have not seen a doctor 
about it, taken medication or 
had any other form of treat- 


ment fix' it In the five years 
before joining the insurance 
scheme, any recurrence will be 
covered Immediately. 

ff it has been active within 
five years, you need to be free 
of the problem for at least two 
years after joining the scheme 
before it will be covered. But if 
you have high blood pressure, 
and are tatting daily medica- 
tion, you will never have a 
two-year period without treat- 
ment 

Thus, the insurer can refuse 
to pay for anything needed to 
correct problems that could be 
traced back to this condition. 
Ignoring medical advice and 
failing to take On pms wOl not 
help you, either. 

Some insurers are more sym- 


pathetic than others, however, 
so using a specialist broker 
could be a good idea if you 
have had any health problems. 

Medical insurers often refuse 
to accept new customers In 
their 60s or older because they 
are see n as hi gh risk. Clini- 
care, one of the few insurers 
which will underwrite existing 
conditions (for a higher pre- 
mium) rather than imposing a 
moratorium, does not usually 
take on new clients over 64. 

Since tax relief was Intro- 
duced, though, many other 
insurers have introduced spe- 
cial policies for retired people 
and have increased their upper 
age limit for new business. 

WPA offers one policy that 
accepts new customers up to 
age-75, and another which has 
no age limit FPP also sets no 
limit, while Bupa will take new 
customers up to 75 in most of 
its plw n w. 

Obviously, cost is an impor- 
tant consideration, but many 
factors will dictate which 
scheme is right for an individ- 
ual - iTtftinrHng how flexible it 
can be if circumstances 
change. Pensioners can choose 
from plans with co-claim dis- 
counts, high excesses, six-week 
waiting list systems, and a 
myriad other ways of cutting 
premiums. 

But as long as insurers 
impose such strict conditions 
an covering a person's medical 
history, the best advice seems 
to be to sign up for insurance 
while yon are young and 
healthy. Otherwise, when you 
need it, you could find you are 
too late. 


NEW INVESTMENT TRUST LAUNCHES 


{TdepMw) 


Broker 


Sector 


— T* jjdi — — OotsMa PS* MdePB>- 

Mm Hainan Mtanan Annul HMam Anml 
Sba YMd W Sntagi Pita MW tasL Donga knot. Chnge 

tenants Em % QaB ScMon P P £ % £ % War I 


■ INVESCO Javan Discovery 

MVESCO Asset management (0800 010333) 

Paranue Gordon Japn 1:5 n/a No Yes lOOp 85.1p 1,000 1% n& 

Specialising in Japanese smafler companies, to be run by manager of fnves co's Japan Smaller Companies unit trust 

■ OM Mutual South Africa Trust 

Otd Mutual (071 772 2173) 

SntWi New Court Emerging UMs is 50 nto No No 100p 95.5p 1,000 

The UK's first South African investment trust, specialising in smafl er and medium sized oomparees 

■ Schrader Japan Growth Fund 

Schroder investment Management 038OQ 526535) 

New Gnat Japan IS 100+ (VS No Yes lOOp 9&5p 2JJ0O 

General Japanese fund from the Schroder stable, which already runs several Japanese unit trusts 


nte 14/7/94-29/7/94 


1% nfe (Va 23/6184-1/7/94 


1% nfe nfe 7/6/94-30/6/94 



Morgan Grenfell. 

Your First Choice in Japan 

tr<- ■ iV.'i' *-.-«». ■ . . 



T. : ’ nr:- ' ' :.. ? • .:T T _ ' " 


,Vf> 




TOTAL RETURN 

SINCE LAUNCH* 

MORGAN GRENFELL 
JAPAN BULLET 

£1727 

JAPAN TSE 

1ST SECTION INDEX 

£1+97 

JAPAN TSE 

2ND SECTION INDEX 

£1378 

~,U; ;rx.£ 

.r.‘ .. 

I L L E T 

F U N D | 


Morgan Grenfell Japan Bullet Fund has produced 
consistently excellent returns since its launch on 
7th February 1992. It is up over 72%, placing it 1 1th 
out of the 99 funds in the same sector. It has also 
out-performed both the Japan TSE 1st and 2nd Section 
Indices over chat period, as can be seen from the 
tabic above. 

These results have been achieved at a time when 
the economy has been in a deep recession. 

A PROVEN INVESTMENT APPROACH 

Our Fund Managers, based in Tokyo, make over 
500 company visits a year, searching for small 
companies with big ideas; under- researched businesses 
that offer considerable growth for investors. 

INVEST NOW 

Economic indicators showthat the Japanese 
economy may at last be emerging from recession. 
Consumer confidence is gradually returning and 


declining inflation is raising their purchasing power. 
Moreover, the agreed government spending packages 
arc set to boost growth even further. 

With these factors in place, the Morgan Grenfell 
team is ideally positioned to capitalise on the success 
they have already achieved. 

For further details please contact your Financial 
Adviser. Alternatively call us free today on 
0800 282465 or complete the coupon below. 

To: Morgan Grenfell Investment Funds Ltd., 

20 Finsbury Circus, London EC2M I ITT. 

Please send me further ilctails of the 
Morgan Grenfell Japan Bullet Fund. 

Full Name 


Address . 


. Postcode . 



“Source: NAV to NAV, grass income iein<«Mf since leunefi {7-2.921 to I A94. 

Please remember ihot post parfommicn is not necessarily a guide to future resums. The vohia of Shore* and income tram them may EnH 
as w«8 os rise and investor* may rta gnf back the original amount invested. Change* in exchange nee* mo/ oho o&d fa value of your investment, 
hsued by Morgan Gim M hw a l w ertl Fund* fid, 20 finsbwy Cran, London EC2M IUT, Member of IMRO. 


PORT 



OLIO 




Fund of Funds 


U NIT TRUSTS are the best way 
for most people to invest in stocks 
and shares. Bur there are over 1*500 
ro choose from. The Portfolio Fond 
of Funds cakes die worry oat of which 
to select. 

THE PORTFOLIO APPROACH 

Portfolio Fund of Funds is intended for the 
cautious investor and aims to achieve 
maximum total return from a low risk 
international diversified portfolio of unit 
trusts. This gives it a very wide spread of 
risk, expertise across all the available 
sectors, and access to the City's best fund 
managers, each chosen for the area in 
which they excel. 

The fund currently includes crusts run 
by Schraders, Fidelity, Gartmore, Lazards, 
Foreign 8c Colonial, Newton, NM, GT, 
Credit Suisse, Morgan Grenfell, Baillie 
Gifford, Guinness Flight, City of London, 
Rothschilds and Fterperual. 

Over 50% of the underlying investments 
are in UK and other European Union 
equities. 

OUR RECORD 

From launch in December 1989 to 1st 
June 1994 the value of units with net 
income reinvested (offer ro bid) rose 
74.0%, the best performance over the 
period of any of the funds of funds 
monitored by MicropaL 

Over other periods to 1st June 1994, 
performance was as follows: 


RQHfOMG INITIAL CHARGE 

The initial chatgr included in the offer price 
is 5%. Bur with investments of £5,000 or 
more the effective charge you pay on the 
whole amount is reduced as follows: 


£1,000 to £4,999 

5% 

£5,000 to £9,999 

4% 

£10,000 to £24,999 

3% 

£25,000 to £49,999 

2% 

£50,000 to £99,999 

1% 

£100,000 and over 

Nil 


Applications will be acknowledged. CcttiticarQ will 
be sent within Zl day* of the dealing day. 

Units are nlucd ar 9.00am on Mondays, ami on 
ocher days with the Trusted* approval. Orders to 
or sell ate carried out at me neat valuation 
[ rrceipt of iiutmamnsw 

To cash in, UmpW send os your renounced certificate 
and your cheque wffl be posted within dime days of the 
next dealing «uy. 

Unit* ate other accumulation units in which ner 
income h amomaticatty rammed and reflected m 
the pace, or income units /ram which net income is 
distributed on 28th February and llu August. 
Prices ate published every day in the Financial 


REDUCING ANNUAL CHARGE 

The current annual charge is 1.00%. As 
die fund grows, wc intend to allow investors 
ro share in che economies of scale by 
progressively reducing annual charges. 
The charge on successive bands will be 
as follows: 


Up ro£100 million 

1.00% 

£100 to £250 million 

0.75% 

Above £250 mJJlion 

0.50% 

HOW TO INVEST 


4 years: 

+ 71.4% 

1st ont of 22 

3 years: 

+ 68.2% 

1st out of 30 

2years: 

+ 55.5% 

2nd out of 44 

1 yean 

+ 27.2% 

1st out of 59 


Complete the application form and send ir 
ro us with your cheque. Units will be 
allocated at the offer price calculated at 
the next valuation after your order is 
received. 


Tune*. The bid-olfer spread depend* on the size of 
your miriaf hmestnunt and will be approximately the 
same a* the effective initial charge. On 6ih June I9M 
the offer price was l£&£0p and the gross annual yield 
was 0.64%. 

Thr tniu deed {ins linrrraon to the m a n a ge r, w 
vary the pricing basis of units and limn* the annual 
ma iugeuitru duip to a maximum of 1%. Trustee's 
Registrar's and Auditor's fees are paid by the fund. 

Commission is payable to approved nucrmedEines at 
(he rate of 60% ot the effective miculdurg^ 

hconc b paid out or reunaicd net of basic rate 
tax. Higher rate taxpayers may incur a further 
liability. Any disposal of units may be liable to tapiral 
gains rax. 

Regular meetings of imhhoUcn am held in London 
following the publication of annual and half-yearly 
reports each March and September. 

Tbc fund a an authorised unit mat conxinneJ 
under the Financial Services Act as a fund of funds. 
It is a wider range investment under the Trustee 
fnwumcnuAa. 

Copies of the trust deed, the latest report and the 
scheme particulars ate available from the Managers 
on request. 

The Trustee is Midland Bonk pic. Mariner House. 
Pepys Street, London ECAN 4DA. (Manber of IMRO.) 

The Registrars and Administrator* ore Unit Trust 
Accounting At Managrment Limited, I White Hart 
Yard, London SE1 I NX. Telephone 071-407 i"»66. 
FAX 071-407 5265. (Member of IMRO.) 

The Matugen ate Portfolio Fund Management 
Limned, 64 London Wall, London EC2M STP. 
Telephone 071-6J8 0808. FAX 071-638 0050. 
Members of IMRO. LAUTRO and AUT1F. 


Past performance is nor necessarily a 
guide to future performance. 

LOW VOLATILITY 
ITjc fund minimises volatility through 
extensive diversification. It aims id avoid 
the sharp peaks and troughs of more 
specialised foods. It can serve as a complete 
portfolio of equity investment for risk- 
averse pension funds, trust funds and 
children's trusts as well as for individuals. 

AH investors should however bear in 
mind that the price of units and the income 
from them can go down as well as up. 


■ OFFSlof omits In PortfoBoFnod of Funds 

| To: fonfolio Fund of Funds, 1 White Harr Yard, London Bridge, London SEl 1NX. 

1 1/we wish to invest the sum of £ (minimum £ 1,000] in Portfolio 

Fund of Funds and enclose a cheque payable to Portfolio Fund Management Limited. 

1 for accumulation units in whidi net income is reinvested, please tick here Q 





SWStoKIUREfR w- - 

— . . .. _ own 



FT 18/6 






VDI WEEKEND FT 


FINANCIAL TIMES 


WEEKEND JUNE 


18/JUNE 19 1994 



FINANCE AND THE FAMILY 


When confusion reigns 

Personal pensions: last in the series on the true costs of investing 


G ood investment per- 
formance will 
always compensate 
for high charges - 
hat if investment performance 
fang, you are left with the high 
charges. These can have a dra- 
matic effect on how much your 
personal pension plan pro- 
duces when yon cash it in. 

Although charges on such 
plans usually are stated explic- 
itly in the product brochure, 
working out their implications 
is almost impossible. 

This confusion is made 
worse by the fa ct that while 
new rules on life insurance dis- 
closure come into force at the 
end of this year, all personal 
pension providers (mostly 
insurance companies) must 
until then quote an identical 
set of charges laid, down by the 
regulator. 

ft is, therefore, impossible to 
tell which companies have 
high charges and which are 
particularly competitive. 

To make matters even worse, 
the standard set of charges is 
now so dated that virtually all 
of the 100-plus providers have 
higher fees than the standard. 

Personal pension plan 
charges come in a variety of 
guises and disguises, from the 
relatively straightforward to 
the frankly incomprehensible. 
They include: 


■ Bid/offfer spread 

As with most shares quoted on 
the stock exchange, this 
reflects the difference between 
the buying and selling prices, 
and is usually 5 per cent plus a 
rounding charge. 

■ Annual fund charge 

AH funds have an annual man- 
agement charge, the norm 
being 1 per cent but varying 
from nil on cash funds to 1.75 
per cent a year for highly spe- 
cialised funds. Several compa- 
nies return part of this fee at 
retirement, re-labelled as a 
“loyalty bonus." 

■ Policy fee, service or 
administrative charge 

These fees are charged for col- 
lecting contributions. They 
usually start at an innocuous 
level of about £2 a month, but 
nearly all are linked to an 
it|Hurg and wQl rise in line with 
its increases. Most link to the 
i'hHpt of national average earn- 
ings, which rises more rapidly 
than the alternative, the retail 
price index. 

Obviously, the smaller the 
contribution, the bigger the 
slice the policy fee will repre- 
sent Even for single contribu- 
tions (for example, a lump sum 
transfer from another scheme), 
some companies stQl levy an 
administration charge. 


deducted monthly by cancella- 
tion of units or as a single 
deduction at outset of about 
£ 100 . 

■ Unit allocation 

This is the percentage of the 
contribution actually invested 
in units. The rate will vary 
enormously between the pro- 
viders, how often contributions 
are paid, and how far you are 
from retirement. Unit alloca- 
tions are always higher for 
lump sum contributions than 
annual: the lowest are for 
monthly contributions. 

Do not be fooled by compa- 
nies that tell you the allocation 
is, for example, 102 per cent of 
what you pay. Although It 
sounds good, it simply means 
the charges are being deducted 
elsewhere. 

Unit allocations can be as lit- 
tle as 50 per cent of the first 
year’s contributions. Bat some 
gmaTtar life companies, which 
sell j paowions entirely through 
their own sales forces, can 
have a unit allocation of zero 
for the first two years. 

■ Capital levy 

This is the most obscure and, 
frankly, the most misleading of 
all charges levied on personal 
pensions. 

It is an old-fashioned method 
of taking out up-front charges 


and is used simply to disguise 
this fort 

life offices that operate this 
syste m will have two types of 
imft, cap i tal and accumulation. 
For the first one or two years, 
contributions will be allocated 
to units which bear an 

additional annual charge 
throughout the lifetime of the 
pension plan. Capital units do 
not apply to lump scon contri- 
butions. 

By operating this system, the 
brochure (or the salesman) will 
be able to say that 100 per cent 
of contributions are invested 
from day one. Clearly, this is 
better from their point of view 
than saying that half or all of 
your first year’s contributions 
are swallowed up in charges. 
The capital unit method dis- 
guises this completely. 

■ The sting in the tail 
Watch out for “hidden" 
charges that may not be appar- 
ent from the brochure or the 
caiggman. These are penalties 
levied if you cancel your policy 
in the early years. This charge 
can be swingeing - General 
Portfolio, for example, has a nil 
value on its personal pension If 
you cancel in the first five 
years. 

To show the effect of 
charges, we have taken a 
£10.000 single contribution. If it 



were to grow at 10 per cent a 
year without any charges 
deducted, it would be worth 
£25,937 after 10 years. 

The average charging policy 
would deduct a total of £3£5T 

but fl™* h ighest charg ing plan 

- that of Royal London - 
would deduct £4848, which is 
19 per cent of the fund 

value. 

It is impossible for the lay- 
man to work out the effect of 
all these complex charges, but 
there are two ways of avoiding 
the most onerous. You can pay 
by single contributions or 
recurring single contributions; 
cot pay an independent adviser 
a fee, t hu s ensuring that the 
commission part of the charges 
is re-invested in the pension 
plan. 

In the example given above, 
the most competitive personal 
powcicm p lan with no cranmia - 


COST CHECK 


Service charge 


Coat 


Commission. 


Kd/oflar spread— 
Annual charge 

Policy fee 

Allocation rate 

Caphcd units and 
hour they work. 


Company’s record on earty 
earty surrender. 


sion deducted is from Provi- 
dent life. Its charges amount 
to a deduction of £1,774 over 10 
years, or &8 per cent of the 
totaL But do not forget that the 
cost of the fee, and lost interest 
on flint, ha« to be tnltm into 
account 

Janet Wolford 

■ The author is editor of 
Money Management magazine 



Opportunities like this don't come 
'INVESTMENT \ „ , . < 1 , 

ACCOUNT s knocking at the door too often. 

National Savings Investment 
Account delivers decent interest rates without 
locking up your capital ' we require just one 
month's notice for withdrawal. And you get a pass 
hook to help you keep track of your deposits. 

Interest is added to your account once a year, 
in full without deduction of tax. It is taxable but 
non-taxpayers keep the lot. 

Save any amount you like from £20 to a 
maximum investment of £100,000. And the 
more you invest the better your rate 
of interest. 

For holdings below £500 you earn 5.25% pa. 
You get a higher interest rate of 5.75% pa 
for holdings up to £25,000. For £25,000 and 
over you'll earn our premium rate of 6% pa. 
These rates are variable and may change from 
time to time. 

To open an Investment Account by post just 
use the form below * we even pay the postage. 

Your cheque should be crossed- “A/C Payee”, 
and made payable to “NATIONAL SAVINGS 
(INVESTMENT ACCOUNT)”, using CAPITAL 
letters for this part of the cheque. Please write your 
name and address on the back of the cheque. 

Post your completed form and cheque in an 
envelope to: National Savings, Freepost GW3276, 
Glasgow G58 1BR, 

Acceptance of your application will be subject 
to satisfactory checks on your identity at the 
discretion of the Director of Savings. 

Existing account holders can make further 
deposits by post. Just send us your cheque and 
passbook «■ no coupon is needed. 

If, before applying, you would like a 
leaflet giving more information, call us free 
on 0500 500 000 anytime. 

Or, if you prefer, you can open an account 
at your local post office. 



Think Big. 

6% pa by Post. 


Please said this form to : Investment Account 

National Savings 
Freepost GW3276 
GLASGOW G58 1BR 


For National Savings use cdy 


FT954 


l M. 


.(Mr Mrs Miss Ms) S urna me . 


AH forena m es 


Permanent address 


.Postcode 


Date of birth 


Day Month Year 


2 I apply to open an account and enclose a deposit of jf 

3 Do you already hold an Investment Account f (Plm ndQ |l/] 

If you do, please quote your Account Number 


19 


1 (MnunmmDcpout £20) 

Yes □ No □ 


4 I dedaze that the information given by me on this form a true and complete. 




Signature. 





DaytgacpfaQpgraunber — ■ — , 


SECURITY HAS ^ 

(bkM if tfcat b » query) 


NEVER BEEN SO 

This form cannot be used u a post office 

IwNuamlSmi) 

INTERESTING. j 



Car-maker’ s 

Bitter blow 


In the heady days of the 
mid-1980s, I was persuaded » 
invest in Bitter Corporation, a 
German company nm by one 
Eric Bitter, engineer extraordi- 
nary and maker of the taw- 
ions, up-market Bitter luxury 

sports car. . 

'Hie last X heard was a curt 
letter - possibly in 1988 - say- 

Inc that Bitter shares could 
now be dealt with on the NAS- 
DAQ sy s te m in the US. What 
happened to Bitter? Are the 
shares still tradeable? 

■ Bitter shares are certainly 
not dealt with on NASDAQ 
A n d , as far as we can deter- 
mine, the company is no l onger 
trading. (Answer by Murray 
Johnstone -Persona/ Asset Man- 
agement). 

Suspect — but 
I wasn’t told 

On August 18 1988, I bought 
2,000 shares in Trilion pic Ian 
independent television produc- 
tion company]. As of Mhrch 17 
1989, this firm had £25m in 
cash for the sale of Umehouse 
Studios on Canary Wharf In 
east London. 

I have been In touch with 
ffee industry regulatory bod- 
ies] Fimbra and Lantro bnt it 
appears TriHon pic was not a 
member of either. 

I bought the shares through 
a firm in Norfolk which was a 
Fimbra member but left on 
May 14 1992. I learnt only 
recently that it should have 
told me TriUon pic was not 
registered with any back-up 
organisation and tint 1 risked 
losing all my investment 
should Trifion go out of busi- 
ness. 

It did not give me this infor- 
mation, however. Is there any 
action I can take to recover 
my money? 

■ Huge debts forced TriUon 
Into receivership In December 
1992 and we regret that your 


j 

former shareholding Is worth- 
less. To advise you on wtwtb* 
you haw any ground for action 
against the Norfolk firm, we 
would need to know the nature 
of vour relationship with it 
If you were asking it merely 
to act as an executiomxdy bro- 
ker. them your investment is 
THUou can only bo written off 
as a bad loss. 

If on the other hand, it bad a 
specific discretionary invest- 
ment management agrempg 



BRIEFCASE 


no tn* iwpftwWft' om> te hoM 
AwoV Vmm tr wm ym m 


with you, and specifically &» 
obeyed instructions not to 
invest in such small compa- 
nies. thrn you might well have 
a right of action. 

Unfortunately. Trilion was a. 
sad example of a small com- 
pany not surviving in tough 
industrial conditions. (Answer 
by Murray Johnstone }. 

Paying tax on 
share sales 


Do you have to pay tax 

selling shares. I am a nou-tex- 

payer. 

■ You have to pay CCST only if 
your total capital gains (after 
indexation relief) amount to 
more than £5,800 in 199496. As 
you are a non-taxpayer, the 
next £3,000 of capital gains 
beyond £54)00 would be taxed 
at 20 per cent; the next £20,700 
at 26 per cent; and the rest at 
40 per cent. 


Feedback 


Front C Vbae 

I was particularly interested in 
your article on unit trust 
charges cm May 14/15. Might I 
draw attention to two situa- 
tions where there could be 
losses in value for investors 
related to bid/offer spreads, in 
cases where managers decide 
the timing of purchases and/or 
sales. 

In the first case, it is possible 
for the individual investor to 
detect what is happening, and 
perhaps even to reduce the 
impact I am not sure if one 
could establish the frets in fee 
second case: I hope it does not 


Regular monthly savings in 
a unit trust: When operating a 
regular monthly savings 
scheme, the managers may fix 
a few day(s) in the month 
when they buy units tor the 
regular savers. 

On such days, purchases nor- 
mally will outweigh re-pur- 
chases, in which case fee fixod 
may move to an offer valua- 
tion. 

Naturally, sales of units will, 
in general, be on other days, 


probably with a hid valuation. 
This practice effectively 
I n cre as e s the Md/offer spread - 
in one case that I know, from 
53 per cent to 83 per cent The 
difference would normally be 
less. 

Managed fund of in-house 
unit trusts: For a final consist- 
ing of in-house unit trusts, it 
would not be surprising to find 
that when the fund sells units 
of one of the unit trusts in the 
fimd, the repurchases for that 
unit trust, for that day, out- 
weigh purchases; and the 
reverse when the fund buys 
that urdt trust 

If the spread for the unit 
trust moves to the bottom of 
tire permitted range in the first 
case, and to the top in the sec- 
ond. then the spread effectively 
is increased. With active man- 
agement, the impact could be 
significant, even when no Ini- 
tial charges exist (or when 
those that do exist are 
rebated). 

C Vince 
10 Keepers Wood 
Chichester 
West Sussex 



Ihere are only two complete 
account periods left until 
rolling settlement - the new 
system of settling payment for 
buying and selling shares - 
begins on July 18. 

JCbe stock exchange divides 
fee year into account periods 
named by tetters of the alpha- 
bet. Yesterday was the last day 
few dealings in account period 
LandaWlfortoenetaStS 
for an trades conducted in the 
period, which began on June R 
has to be settled on June 07 
This allows investors who 
dealt earty to the account up 




to 16 working days to si 

Being able to settle t 
Bsomaxt is useful for all 
tors. Speculators aim! 
make a profit within ti« 
account can. If succi 
make money without cvi 
tog to put up a penny. 

Account periods will 
pew from July 18, aft 
investors who rtw ti in U 
Period - account N - e* 
settle In fee usual way o 
W- But from July 18k 0 
tiement day will be 10 
log days after ifatHw da 
T+ 10 . 



FINANCIAL times WEEKEND JUNE 18/JUNE J9 1994 


WEEKEND FT 


IX 


PERSPECTIVES 


Minding Your Own Business 

Thirst for 
success beats 
the drought 

Clive Fewins on a company's recovery 



Matthew Bjme and Me* Handover, practical experience dovetailed with efficiency and buttons sense 


As They Say in Europe/ James Morgan 

Free votes in 
an ideal election 


O ne dry, hot day in 
June 1976. Nick Hand- 
over and his wife Pan- 
line, plus 16 staff, 
began on a contract to 
dean the stone of 52 buildings in 
Bath, Avon. By the ^ day the 
project was dead. 

“It was the Hwra of the TUtjnnu J 
drought We were told in the even- 
ing that our task was not an essen- 
tial use for water and most 
After eight years hard slog we had 
developed a system, acceptable to 
the conservation lobby, for the pres- 
sure water cleaning of soft stone 
and were turning over a healthy 
£500,000,” Handover said. "The next 
morning the company was effec- 
tively finished.” 

A pick-up truck and trailer, 
emblazoned with “Brain Brain", the 
name Handover had given his com- 
pany, was permitted to continue 
essential local authority work. This 
left the workforce doing very little 
for 2% months until he opted for 
voluntary liquidation. 

“Water has been my way of life 
for 26 years. I love the stuff - erven 
revolting dirty water - but it was 
water, or the lack of it, that finished 
off my first venture,” said the 52- 
year-old English-educated South 
African. 

“My big mistake, after the Bath 
episode, was being loyal to the 
workforce and keeping them on. ft 
eventually meant we had to seO our 
house and buy a much cheaper one 
and 1 owed my creditors £87,000.” 

It took nine years to pay it bade 
but Handover had succeeded in con- 
vincing his creditors that they 
would be better off if they allowed 
him to continue trading rather than 
forcing him into compulsory liqui- 
dation. 

“We put our heads down and kept 
going. It was drain cleaning pure 
and simple - two of us carrying out 
an essential service all over the 
west of Rn giand, performing a task 
nobody liked doing,” he said. 


By 1979 Handover felt things 
might be improving when Dyno-Rod 
tried to buy his company name for 
£12.000. He could have done with 
the money, but he declined. 

In 1982 he was able to move again 
to a larger home near Cirencester 
where he could house his four 
vehicles in the old stables: By 2986 
the fleet had grown to 12 vehicles 
and the company turnover was 
£L6m. Two years later it had grown 
to f-l-ftm- 

Handover explained: “Really, the 
growth had been much too East I 
didn’t have t he nupagmep t exper- 
tise to hq prUp Ehic sort of money 
and I was utterly unsuspecting 
when a Frenchman rang and asked 
if he could come and see horn our 
operation worked.” He eventually 
asked if the company was for sale. 
Handover said no. 

The Frenchman returned a few 
months later, in February 1969, by 
which time things had changed. 
“He asked me if I would sell a share 
to the company he worked for,” said 
Handover. “1 said yes. The press 
seemed to be full of gloom about the 
impending recession, and we bad 
lost a lot of work from large devel- 
opers.” 

hi July 1389 Sanitra, the drain 
rietming arm of F rench w ate r com- 
pany Lyonnais e des Eaux-Dumez, 
took over 76 par cent of Drain 
Brain. Handover was given the 
property he lived in as a gift, as 
well as a lump sum, and appointed 
managing director. 

Soon after, he moved the business 
to a country site and was keen to 
build a workshop, & store area and 
offices on the 2% acres he had 
leased from a fanner near Btbury, 
Gloucestershire. 

All was fine at first Handover got 
on weD with his new colleagues and 
Sanitra willingly financed the 
£400,000 building project However, 
they were unhappy at the lengthy 
British planning processes, and 
especially at the attitude of a neigh- 


bour who objected to the develop- 
ment 

By 1392 the French had provided 
more than fim for buildings and 
eqnipment, bnt turnover had 
dropped from £13m to £1.7in. By the 
Hmp the recession took hold the 
books were showing a loss - mini- 
mal in 1990/91 but £300,000 the fol- 
lowing year. 

The French switched manage- 
ment and imposed financi al 
restraints. “It got very fraught” he 
said. “I couldn't stand either of the 
two new key men." 

Eventually, it was Handover who 
stayed and the Fr ench who left, an 
outcome largely due to the arrival 
of '27-year-old manager Matthew 
Byrne. He had worked for Shell for 


five years and was headhunted by 
S anitr a, who saw him as the sav- 
iour of their English operation. 

*T think they thoug ht that with 
my arrival Nick would give up and 
go,” said Byroe. Instead, the oppo- 
site happened: Handover's practical 
experience dovetailed with Byroe’s 
efficienc y and business sense. 

After a dreadful 1992, in which 
the company lost £280.000, business 
started to pick up. helped by the 
North Sea work that Drain Brain, or 
DB Industrial as the company is 
known offshore, won because of the 
equipment bought with Sanitra cap- 
ital. 

At the beginning of 1393 ■* the 
year DB Industrial went into profit 
g garn - Sanitra polled out Hand- 


over and Byrne bought the com- 
pany as j oint managing directors in 
March last year. They each put up 
£20,000 of their own money and the 
total company debt of £400,000 was 
met by a £75,000 loan from the 
Rural Development Commission, 
£30,000 from Credit Lyonnais, 
£35,000 (interest free) from Sanitra. 
and £200.000 set against current 
debtors. The rest is secured by a 
bank overdraft 

“It was a phmnmgnfli deal Said 
Handover: “It was probably silly to 
get involved with the French, but in 
a funny sort of way they saw us 
through the recession.” 

■ Drain Brain. Afeadotolands, 
Btbury, Cirencester. Glos GL7 SLZ. 
TeL 0285-740682. 


F or those interested in 
Europe or elections, Euro- 
pean elections are a dead 
loss. There Is no meaning- 
ful result and people “don't know 
what they are voting for”. For the 
political philosopher, however, 
they are a goldm i ne. The cryptic 
cartoon In El Pais last Monday 
showed a book written by Rousseau 
and other savants entitled “All elec- 
tions are general”. The Interna- 
tional Herald Tribune said all elec- 
tions were local. 

In fact, the European poll pro- 
vided the platonic ideal of an elec- 
tion. How would you vote if you 
were not constrained by fears of 
the result? How would you vote if 
greed and self-interest played so 
role and your sole aim was to 
reward virtue and punish vice? 
Thus the British ware able to do 
what they told the country’s credu- 
lous opinion pollsters they would 
do in 1992. They voted tor tire party 
that promised more money for the 
National Health Service, and 
against the government. The Dutch 
voted for tiie party they chucked 
oat last month because it wanted to 
curb the country's bloated welfare 
services. 

The Germans, unimaginatively, 
used the occasion to vote as they 
always do; the Italians to express 
their faith in their new Ducc and 
his “post fascist” hangers on. The 
Spanish showed that they really 
disapprove of corruption and the 
Belgians chose their esoteric 
mosaic of parties which ensures 
every government in Brussels Is 
the bmml 

As usual the British, modestly, 
and the French, spectacularly, pro- 
vided the drama. The French, how- 
ever, took most advantage of the 
unusual opportunities offered by 
Euro-voting. As Liberation 
remarked: “The European elections 
are always more exciting after the 
vote than before." There was huge 
support for symbolic candidates. 
Thus PhiBipe de Vffliers and Sir 
James Goldsmith gained an eighth 
of the vote for their anti-Brussels, 
anti-free trade campaign which 
suggested that peace, prosperity 
and foil employment would reign 
again Ju France once prohibitive 
tariffs were placed on imports of 
Tirinnagfan underpants. 

B e rn a r d Tapie, the businessman 
arraigned on corruption charges 


and master of the Marseilles foot- 
ball team, also did well, largely 
thanks to the uuder-25s. As Libera- 
tion pointed out, Tapie represented 
the divisions between the official 
left and ordinary voters while de 
VUIiers “chewed np the heart of the 
electorate of the right". So the 
Euro-vote in France resurrected 
ancient reflexes and anointed the 
fashionable rebel. There is little 
room in a normal, general election 
for Bonapartism and glamorous 
rascals. 

Such attractive opportunities do 
not exist in any election in Ger- 
many. There the occasion was 
taken seriously, but not seriously 
enough, and the Frankfurter AU- 
ffemeine had to issue its standard 
indictment: “The difficulty of direct 
elections to the European Parlia- 
ment is as always that the voters 
have no basic understanding of 
what they are voting for. There are 
not the usual alternatives of ’gov- 
ernment and opposition’.” It 
lamented the lade of what it called 
"European parties”. 

The trouble with such a notion is 
that it would allow no room for 
divers i ty. Anti-Euro forces are pow- 
erful in most countries but in each 
case they resent different aspects of 
the Union - usually those which 
make membership acceptable to 
sceptics elsewhere. A cross-border 
Eurosceptic party would make as 
much sense as a cross-border Nazi 
party. It would exist to fight itself. 

German gloom was taken to its 
logical conclusion by the SOd- 

deutsche Zeitung: “The Social Demo- 
crats lost, the Free Democrats lost, 
the Bonn coalition lost The Bed- 
Green Alternative lost no less and 
finally Europe lost For Europe was 
discussed, before the poll and after- 
wards, as little as in a domestic 
election." 

This was a universal complaint 
Bnt the paradox Is that the day is 
coining when European issues wiD 
dominate domestic elections. As 
people catch on to how much Brus- 
sels and the European parliament 
matter they will look more to their 
national governments to defend 
their national interests. 1 look for- 
ward to reading diatribes on the 
way national issues have become 
“submerged in Hi-informed debates 
about the future of Europe’.” 

■ James Morgan is economics corre- 
spondent of the BBC World Service 


Dispatches /Kieran Cooke 


Upriver in 
Sarawak 


T he headman wanted a 
translation. “It’s the 
eyes. Just watch- She 
never blinks." Satel- 
lite TV is in Malaysia. 
But the more remote you are 
the more the outside world 
intrudes. 

Here, in the centre of Bor- 
neo, sitting in a tribal longh- 
ouse with shrunken heads 
hanging on the wall, sur- 
rounded by dense jungle, head- 
man Long I -iban and I watch 
American TV news. 

Long i.than has tattoos on 
his Teet, legs and arms. His 
mighty ears have big gaps 
pierced in them. His face is like 
a collapsed football, wrinkled, 
tnQ thtoss and warm. He peers 
at the screen. “What strange 
people. Do they take drugs?” 

Long Lihan’s longhouse Is 
500km upriver from Sarawak’s 
coast. At Sibu, near Sarawak’s 
coast. Td climbed on board the 
Wah Wah. It was more a tor- 
pedo than a boat With engines 
kicking out 700-horsepower the 
Wah Wah sliced its way up the 
Rejang river for five hours. 

An on-board video showed a 
programme on how to take 
care of office plants. I tried to 
read The Field Book of a Jun- 
gle- Wallah, written nearly a 
century ago by a senior official 
of the Brookes, the White 
Rayahs of Borneo. Journeys 
were more peaceful in those 


indy point, a 100 
i away, my China- 
uring back into life 
fire... around me r 
cry of awakened 
whistles and calls 

tils, the high treble 
. many varying 

sounds I hear are 
Deed for the potted 
the roar of Wah 
ies. But there had 
►y of excitement 

ay- . 

s are not very wel- 
irawak. The state 
many negative 
ive been written 
gging industry and 
on of the tropical 
s. Officials have 
sensed as foreign 
talists have taken 
* of jungle dwellers 
about the ties true- 
- homelands, 
he hotel in Kuch- 
ak’s capital, there 
i it lug of film. A 


rather inept special branch 
man. was whistling noncha- 
lantly round, taking pictures 
behind his back. IBs camera 
must have been made from 
rejected East German tractor 
parts. I think he got a good 
shot of my socks. 

At the hotel in Sibu a Cana- 
dian psychiatrist insisted that I 
should consider treatment I 
should monitor my behaviour. 
We travelled upriver together. 
The whole time, she talked 
about the Yukon. 

The rule of the Brookes went 
little further than Belaga, a 
town of about 2,000 on the 
upper reaches of the Rejang 
river. From here I needed to 
charter a boat to get into 
longhouse country. Upriver 
people drink a lot A deal was 
done over glasses of “Brandi 
Coke" (Crocodile brand), a 
paint-removing liquid sold at 

the local store. 

Four more hours upriver. We 
stop at one longhouse. ft is 
more than 200 metres long. 
Some 550 people five here, con- 
sisting of 92 families. 

There is more drinking, this 
tim e of tuak, the local rice 
wine, poured out of what looks 
like a petrol tin. 

“We must go to see Long 
Lihan," says the boatman. “It 
is only a few minutes upriver, 
over the rapids.” I choke on 
the tuak. “Do you really think 
we should ... perhaps I had 
better stay here?" 

No. Not to see the headman 
would be a serious insult. 
There is no choice. Soaked and 
mildly sceried, I clamber into 
the longboat. 

We leap the rapids and cross 
whirlpools. The engine roars 
mid stutters. The rain lashes 
down. Then, around a river 
bend, peering ridiculously 
through the pitch dark night, 
there is a set of fairy lights. 
Long Lilian 's house. A king- 
dom all on its own. He has his 
own generator - and satellite 
dish. 

I loose my balance clamber- 
ing up a river bank log. The 
headman nods a casual greet- 
ing at this mud-caked stranger 
and makes a place in front of 
his TV. We watch the US 
weather forecast. At some 
point I pass out on the floor. 

We leave in the morning. 
Long Tihan is in front of the 
screen, mesmerised. “She still 
hasn’t blinked,” he says. 


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SPORT: WORLD CUP ’94 


There Is bo part of the world, it 
seems, untouched by World Cup 
wiarinpws anH the Biwwriiii leverage 
such madness brings, reports 
Nicholas Woodswcrrth from Heine. 
Norway. 

Barber this week, north of the 
Arctic Circle, in Norway’s Lofoten 
uianrig, the villagers of Heine 
received a nasty surprise. Just days 
before Norway was to play its first 
World Cup Group E match - 
against Mexico, tomorrow, Nor- 
way’s first World Cup m atch is 58 


Norwegians suffer blackout amid arctic night 


years - NEK, the Norw egian 
national television network, west 
on strike. 

Down by the docks, in the Gtun- 
melbua bar and restaurant, there 
have not been such romhlings since 
the introduction of the EU cod 
quota. (The flairful Norwegians 
were partly responsible for the 
&igland team’s failure to qualify 


for Oils year’s World Cup finals). 

Tt is absolutely disgust ing ," said 
Bent Henriksen. t% most vfflag- 
ere hero, Henriksen owes his addic- 
tion to soccer to the six-monthlong 
arctic night 

“The timing of this strike is no 
mistake. The last time NBK did 
fins was the World Cup in Italy; we 
had no sound until the send-finaL 


But when your own country is 
involved, that b dirty play.” 

How much does soccer mean to 
an isolated arctic island of fisher- 
men? A lot, says Henriksen. 

The season Is short, and the 
Heine Junior fa*™ have to dig their 
pitch out of the snow in May. Xu 
Bodo, 3% hours away by boat, the 
grass in the municipal stadium 


grows only because of electrically- 
heated cables beneath the sod. The 
Bodo team hold the Norwegian 
First Division Cup. 

No mere strike, then, is going to 
stop Heine from watching World 
(kip action. In case NEK’S pictures 
do not arrive, the Gammelboa bar 
and restaurant has sent off an 
order to the mainland for the 


Stage ready for stars to shine 


Peter Berlin in New York 
wonders which of the world’s great 
players will dominate the finals 



Among the 
tantalising pros- 
pects of the World 
Cup finals is the 
debut on a US stage 
next Tuesday of an unlikely charac- 
ter. Diego Maradona, missionary. 

North American newspapers and 
magaidwftB have been packed with 
handy guides to the soccer basics. 
Often, these previews were deco- 
rated with pictures of Argentina’s 
Maradona scoring by punching the 
ball over Bn gland 's earth-bound 
goalkeeper Peter Shilton in the 1386 
World Cup - helped, claimed the 
cheeky Argentine star, by the Band 
of God. 

In the US, partly for the wrong 
reasons, Maradona is the world's 
best-known soccer player. Over the 
next four weeks, therefore, it is up 
to hi™ to spread the faith among 
the unbelievers - starting (if he is 
picked) in Tuesday's mat ch against 
Greece in Boston. 

As ever, the World Cup finals will 
provide an important measure of 
world soccer’s health. They may 
also reveal something about the US. 
Is it closer culturally to its neigh- 
bours in South America, or to west- 
ern Europe? Players and fans, 
s uperstiti ous as ever, are fretting 
for an answer. 

Western European teams have 
won seven of the eight World Cups 
held in western Europe but none of 
the six held in South America. 
When the trophy is hoisted into the 
air in Los Angeles on July 17, we 
will know whether it is easier to 
vault the Rio Grande than the 
Atlantic. 

In the last 20 years, South Ameri- 
can World Cups have been better 
than those in Europe. The 1970 com- 
petition in Mexico drew its tone 
from the dazzling victors, Brazil. 
Argentina, the hosts, won with 
attacking play in 1978. 

Mexico, in 1986, wa s ador ned by 
France, Denmark, the USSR, Brazil 
- and Argentina’s Maradona at bis 
peak. 

In Italy four years ago the style 
was set by the first and last 
matches, both of which produced 
more sendings-off than goals and in 
both of which defensive muscle tri- 
umphed over attacking skfiL 

Cameroon, who won the opening 


match, and Argentina, who lost it, 
were the successes of the competi- 
tion. More talented teams could not 
beat them. They were only undone 
by the number of players penalised 
by red and yellow cards. 

But Latin American World Cups 
are not always good. It might am- 
ply be that recent World Cups in 
South America have coincided with 
richer-than-usual crops of that most 
easily damaged commodity: the soc- 
cer star. 

In 1990, the tournament was 
almost devoid of new stars. This 
tfiwttj thing s could be much better. 
Alfio Basils, the Argentine coach, 
says that Maradona - who has 
scored almost as many goals far his 
country as his team-mates com- 
bined - is in good form. This could 
be a bluff. But even unfit, Maradona 
is a useful psychological weapon, as 
he showed in Italy, and could be a 
decoy for Argentina's fresh attack- 
ing talflrrt 1 - 

W hile the troubles of the 
last few years may have 
damaged Maradona’s 
waistline and psyche, the enforced 
rest will have given his tattered 
knees the chance to recupoate a 
little. Four years ago, Maradona 
was unable to shoot That will be a 
test of his fitness in the US. 

Even if Maradona is unable to 
establish a place for soccer in the 
hearts of American sports fans, 
there are plenty of potential stars in 
the making The most likely candi- 
dates are players, like Maradona in 
1988, in their mirtrfia or late 20s who 
have been to the World Cup finals 
before. There is a gang of such play- 
ers. 

If Tomas Brolin can reproduce his 
1990 form, and if bis Swedish team- 
mates play well around him, he will 
nnmg to the fore. The same applies 
to Enzo Sdfo of Belgium, who, at 
28, is playing in bis third World 
Cup, and the temperamental 
Gheoxghe Hagi, 29, of Romania. 
Both played well in Daly. Now, both 
have better attackers in front of 
them to help make their creative 
work shine. 

Colombia’s Carlos Valderrama, 
32, is in the same position. In Italy 
his passing was often decorative 
rather than dangerous. This time he 



has file explosive Faustian Asprilla 
to pass to. 

Asprilla is one of a crop of bad- 
tempered strikers who will catch 
the eye one way or another in the 
US. Others include the Barcelona 
teammates Hosnario of Brazil and 
Hristo Stoichkov of Bulgaria. 

If the Dutch are to wiatoh the glo- 
ries of their past, Dennis Bergkamp 
will need to rediscover his best 
form. And, whatever Basile says 


about Maradona, Argentina's best 
hopes rest on the striking power of 
Gabriel Batistuta and the sinewy 
mid-field play of Fernando Redondo. 

Almost every team has potential 
stars. The question is whether they 
will be given a chance to shine. 
Four years ago, intimidating 
defenders generally held the upper 
hand over attackers - although, as 
Cameroon demonstrated, there is no 
reason why a team cannot defend 


A global game for a global market 


C orporate America has a 
long history of pouring 
millions of dollars into 
professional sports, either 
through direct sponsorship, televi- 
sion advertising or marketing tie- 
ins. As a result, when the US won 
the right to stage soccer's 1994 
World Cup, there were plenty of big 
companies eager to sign up as spon- 
sors of the event 
The fact that the World Cup is a 
tournament of soccer, a game with 
an extremely low profile in the US 
and largely absent from its TV sets, 
mattered little to American compa- 
nies, because the event was never 
expected to draw a particularly 
large or enthusiastic domestic audi- 
ence. 

Instead, the event's lure was the 
opportunity for US companies to 
win exposure to the vast global 
audience expected to foDow every 
pass, tackle and goal of the month- 
long competition. For corporate 
America. World Cop football offered 


Hip. to reach the parts that 

mainstream US team sports - base- 
ball, basketball, ice hockey and 
American football - rarely reach: 
South America, Europe, Africa and 
the far east 

It was access to this football 
world beyond the US that per- 
suaded sevem US companies to 
spend a reputed 820m on official 
sponsorship rights to World Cup ’94. 
They were: Coca-Cola, General 
Motors. Gillette, MasterCard. 
McDonald's, M&M Mars and the 
battery maker Energizer (owned by 
Ralston Purina). 

For US companies with extensive 
business interests in many overseas 
markets, the potential worldwide 
TV audience was the chief attrac- 
tion. The largest audience ever gar- 
nered by the Super Bowl of Ameri- 
can football, the showcase of 
American sports. Is 750m people. In 
contrast, more than 2bn people 
watched (he soccer World Cop final 
in Rome four years ago. In 1990, the 


52 pones in Italy drew a cumulative 
audience of more than 30bn. That is 
a lot of car owners and hamburger 


Aside from the official sponsors, 
another seven US companies (Amer- 
ican Airlines, Budweiser, Electronic 
Data Systems, ITT Sheraton, Sprint, 


Patrick Harverson 
in New York on the 
sponsors spreading 
the soccer gospel 


Sun Microsystems and Upper Deck 
Trading Cards) have paid several 
million dollars each, to become mar- 
keting partners of the event, and 
dozens more have signed up with 
the tournament as official product, 
service and equipment providers, 
regional supporters and licensees. 

More than 50 large US companies 


have paid the international and US 
football authorities at least $25Qm 
in fees to earn the right to associate 
their products with the World Cup. 

Although soccer is a minor pro- 
fessional sport in the US, several of 
the sponsors for this year’s event 
are not new to the World Cup. Gil- 
lette’s involvement with the tourna- 
ment dates back to 1970, Coca-Cola 
has been a World Cup sponsor since 
1978. and General Motors was 
involved with the tournament in 
Mexico in 1966. 

For sponsors like these, the diver- 
sity of fim global audience is at the 
core of the World Cup's appeal, 
whether the event is being held in 
the US, Europe or South America. 

General Motors, for example, 
plans to advertise its cars and 
trucks on advertising boards placed 
around the pitches, but the boards 
will display different makes and 
models of GM vehicles according to 
which teams are playing in which 
game. 


In a game featuring Germany, for 
example. GM win use its boards to 
sell Qpel, its chief European brand. 
When Brazil or Mexico are playing, 
the boards will display the name of 
Chevrolet, GM7s Latin American 
brand. 

McDonald’s - which sells an iden- 
tical product the world over - plans 
to treat viewers in Norway, Greece, 
Nigeria, South Korea and Colombia 
as a single market by broadcasting 
the same commercial - identical 
everywhere save for the language of 
the voiceover. 

As for sports-loving Americans 
who normally show little interest in 
professional soccer, the tourna- 
ment's sponsors are hoping that 
promotional events in local markets 
where the games are being played - 
combined with media coverage and 
the excitement generated by the 
presence of a huge international 
sporting event - will help to pique 
the interest of even the most dedi- 
cated baseball fan. 


express delivery of a large sort® 0 
and satellite dish to receive Ger- 
man television. 

'Hie management is confident 
that large crowds of desperate fans 
- plus increased beer sales - will 
cover the cost . . „ 

Most Norwegians believe that if 
their ftwra can overcome Mexico in 
their opening match, they may 


even stand a chance against Italy 
next Thursday. The real fear, 
though, is that the satellite dbh 
will not arrive on time. 

If that happens, there will be Ut. 
tie warmth or cheer in the mid- 
night sun of Heine this summer. 

• The team doctor said that, as 
things stand now. all 22 Of Nor- 
way’s players should beta shape 
for their opening game, despite aa 
injury scare after midfielder 
Oyvlnd Leonhardsen injured hit 
right knee In training on Tharaday. 


For Argentina, success in the finals will depend largely an the form of prodigal genius Diego Maradona 


thuggishly and attack artistically. 

Anyone who still cherishes illu- 
sions about the innocence of Came- 
roonian factics should avert their 
gaze when they play Brazil in San 
Francisco next Friday. That match 
should indicate the direction of 
these World Cup finals. If the Bra- 
zilians are able to play at their best, 
it is difficult to imag ing how Ameri- 
can sports fans could fail to be cap- 
tivated. 


Italy and Ireland stir up 

Big Apple’s ethnic passion 


One of the most eagerly awaited 
piachaa of the World Cup first 
round, Italy vs Ireland - today, 
in New York - is stirring passion 
and debate, especially in 
Ixish-American pubs and in 
Ualian-American coffee shops. 

“Well beat [Italy] 2-0." said 
Bnimwi Moyna as he sat cm a stool 
tu Grahams, a bar in Kearny, 

New Jersey. A native of Ireland. 
Moyna is one of many in Kearny 
who follow the Irish team 
fervently. He is also one of the 
lucky ones with tickets. 

Not far from Moyna sat Gerry 
Darning. Although he is a Scot, 

Duming supports Ireland. “The 
Irish lads have hearts like lions,” 
he said. “The Italians are all 
prints donnas." But he agreed 
that the beat wave in the area 
could help Italy. A temperature 
of around 32°C Is expected. 

Italian- Americans sitting at 
tables at the Caffe Intermezzo 
said they were betting on the heat 
to wear down the Irish players. 
“What do the Irish know of 
heat?” asked Piero San tint “The 
weather, it is in our favour." 

Havelange wins 

Joao Havelange was re-elected 
to a sixth term as president of 
Fifa, soccer’s governing body, 
and Fife voted in 14 new 
members, including Slovakia, 
the Czech Republic and seven 
former Soviet republics. It denied 
membership to 

Bo6nia-Herzegnvlna because of 
the war them 

War of words 

Tempers were rising in Orlando, 
ahead of tomorrow’s 
Belgium-Morocco game. 

Morocco's Nacer AbdeUah, who 
plays in Belgium, accused Belgian 
defender Michel Dewolf of being 
slower than his grandmother. 


and talked about Intimidating 
Croat-born striker Joatp Wabcr 
with comments about the war 
in his homeland. Belgian coach 
Paul Van Himst said the 
grandmother cracks would 
inspire his team. But the political 
taunts, he said, were “repulsive." 

Visa wrangle 

Hundreds of Nigerian fans have 
been denied US visas. The US 
Bureau of Consular Affairs In _ . 
Washington said that all foreign^ 
residents applying for visas mojt 
prove they do not intend to stay 
in the US after the tournament. 
The Organisation of Nigerian 
Nationals in Dallas said many 
Nigerian feus owned businesses, 
were well-to-do and planned to 
return home. 

Smart money backs 
South Americana 

Over the next month, 1 plan to 
drub Britain’s bookmakers until 
they weep, writes Michael 
Thompson-NocL Betting-wise, 
an event like the World Cup 
requires a well-laid strategy, 
adroit money-management, a 
do6e watch on the odds - and 
luck. 

1 am making titifi-wbming bets 
only, and ignoring dangerous 
exotica such as match, group and 
each-way betting, or who scares 
first in US vs Switzerland. 

Current strategy: South 
America. 

Bets struck: £70 on Goloahta 
to win the tournament, at M; 

£60 Brazil, 3*1; and £20 
Argentina, MM. Colombia would 
be a Mg winner, with a net 
overall profit of more than 300 
per cent Ibr now, the other two 
bets are savers. 

First crunch date: start of the 
second round, on July 2. 


■ Rumulnliig first-round schodulo 


The top two skies from each group, pfen the met lour bast performer* owU 

quality for the second round. July 2-5. 



Group A 

Group B Oram C 

QratpD 

droop E Group F 

US 

Brad! Gammy 

AtgaoBN 

Italy Betgtum 

Swtaariand Russia BoIMe 

teasoa 

Ireland Morocco 

Colombia 

Cameroon Strain 

mb* 

Norway Hotad 

Romania 

Sweden & Kona 

Sugarta 

Mexico Seudi Arabia 

Dais 

Group 





Venue 

Timor 

Maloti 

Today 

A 

Detroit 

Atopm 

US v* SuUzariMd 


E 

Now York 

9.00pm 

Italy vs iretand 


A 

Los Angsts* 

1230am 

Colombia w Anar* 

Tomorrow 

F 

Oriando 

SSOpra 

Belgium vs Morocco 


E 

■ IDipB^KA] 

200 pm 

Norway vi Merino 


B 

Loo Angola* 

teSOsm 

Curwoon vs Stifodon 

Mon 2048 

B 

San Francisco 

SUQOpm 

Bmzfl va Russia 


F 

Washington 

1220am 

Hrtand va & Arabia 

TUSS21A3 

O 

Boston 

230pm 

Argentina va Greece 


C 

Chicago 

8JX)pm 

Germany vs Spain 


0 

Ortas 

1230pm 

Ngeriavs Bulgaria 

Wed 22/8 

A 

Detroit 

9.00pm 

Romania v> Swftztand 


A 

Urn Angola* 

1230em 

US va Colombia 

Thur 23/8 

E 

New York 

BOOpm 

Italy vs Norway 


C 

Boston 

1230pm 

S. Korea va BoBvta 

Frl 

E 

Oriando 

230pm 

Mexico vs Ireland 


B 

San Frandaco 

9.00pm 

Braz* va Cameroon 


8 

Detroit 

1230pm 

Sweden v* Russia 

Sot asm 

F 

Oriando 

KSQprn 

Belgium vs Hotond 


F 

New Ycrft 

5.30pm 

S. Arabia vs Morocco 


O 

Boston 

9-QOpm 

Argentina va Mjgorin 

Sun SB/6 

D 

CNcago 

&30pm 

Bulgaria vs Greece 


A 

Los Angeles 

9-QOpm 

US va Romania 


A 

San Randsoo 

200pm 

SwttzTand vs Colombia 

Mon 27/0 

C 

Chicago 

9.0ppm 

BoMa va Spain 


C 

Data 

9.00pm 

Germany vs S. Korea 

TUes SUMS 

E 

Now York 

5.30pm 

Ireland vs Norway 


E 

VVWAiylmi 

5.30pm 

ftnfy vs Mexico 


B 

San Fiandeoo 

9.00pm 



B 

Detroit 

9.00pm 

Brazil vs Sweden 

Wed 2B/B 

F 

Oriando 

SJOpm 



F 

Washington 

230pm 

Belgiien vs 2 Arabia 

Thura 3WB 

D 

Boston 

I230tm 



D 

Data 

1230am 

Argentina vs Bulgaria 


"British Summer Tfami 

Th« mwrtsr-lkiata wM be ployed an the weekend of July 9-10. in Boston, Dates. 
Now York and Son Francisco: the aamis on Wednesday, JUy 13 (Km York and Los 
Angeteft and the trad an Sunday. Juty 17 (Las Angeles). 


EDS *** i*U**wl iradcmsri. uTEkunuuc narnSriMaCiifpcrabca 


We’re coordinating the schedules for over 25,000 World Cup volunteers. 

(And Frank? \bu were 5 minutes late yesterday) 


EDS 


The technology services behind WorldCupUSbM 







SPORT 


Tennis 


Kind route 
beckons 
Sampras 

John Barrett discusses the 
Wimbledon seedings 


A mong the men at 
least, the 108th 
Championship 
meeting provides 
an intriguing 
mixture of certainty and specu- 
lation. Defending champion 
and world No 1, Pete Sampras, 
is certain to start an over- 
whelming favourite. 

The 22-year-old Ameri can 
has lost only five of his 54 
matches in 1994 and has won 
seven tournaments, more 
twice as many as anyone else. 
Yet the weight of history is 
against htm 

Only eight times sincg the 
arrival of open tarmig in iggg 
has the men's top seed at 
Wimbledon won the title and 
in the last 13 years it has only 
happened twice. Furthermore, 
defending a title successfully 
has proved surprisingly diffi- 
cult 

In the 48 years since the war 
the only men to have achieved 
that feat are Lew Hoad (1956-7). 
Roy Emerson (1964-5). Rod 
Laver (1961-2. 1968-9). John 
Newcombe (1979-1), Bjorn 
Borg(1976-80), John McEnroe 
(1983-4) and Boris Becker 
(1985-6). 

Sampras should win. He has 
proved himself to be the best 
player on fast surfaces and 
since teaming up with coach 
Tim GulUkson two years ago 
he has matured as a match 
player. Yet no-one is sure how 
he will be affected by his two 
latest losses. 

When Jim Courier beat him 
in Paris three weeks ago, to 
prevent him from holding all 
four major titles at the same 
time, Sampras was strangely 
inhibited. He never fully com- 
mitted himself to all-out 
attack. This, just two weeks 
after destroying the field in 
Rome. 

it was the same last week at 
Queen's Club. Although fellow 
American Todd Martin did 
serve particularly well, there 
was a worrying lack of urgency 
about Sampras' performance. 
Perhaps, all along, the cham- 
pion was simply pacing him- 
self. conscious of the need to 
preserve his best form for the 
coining two weeks. 

The draw has been kind. 
Sampras starts against his 
neighbour in Florida, Jared 
Palmer, and has as his prospec- 
tive third round opponent Yev- 
geny Kafelnikov. The promis- 
ing young Russian was within 
two points of beating Sampras 
in Australia. 

Sergi Bruguera. winner for 
tbe secon d year in Paris, is 
cast as his quarter-final oppo- 
nent but the Spaniard has not 
played at Wimbledon since 
2990 when he lncl iu the second 
round and may not reach his 
appointed place. The only rea- 
son Sergi has entered this time 
is to get some match play on 
grass before Spain’s Davis Cup 
tie against the Germans at the 
new grass court centre in Halle 
on July 15-17. 

There are three men who 
might face Sampras in the 
semi-finals, the two former 
champions Stefan Edberg 
(1988. 1990) and Andre Agassi 
(1992). plus Martin. Edberg 
(seeded 3). is going through 
another bout of double-fauititis 
and has No 14 seed Marc Ros- 
set. as well as dangerous 
floater Wayne Ferreira, in his 
section. He may not survive. 

Agassi is as enigmatic as 
ever and lacks match play. Yet 
that has been true for the last 
three years during which 
period he has won the title 
once and twice reached tbe last 
eight. It will be fascinating to 


see whether the unpredictable 
Andre has retained Brad Gil- 
bert as his mstrh J believe Gil- 
bert's methodical approach 
denies Agassi the spontaneity 
on which he thrives. 

The lower half is equally 
interesting. After what Courier 
achieved last year, who is to 
say he could not go one better 
this time? Petr Korda is one 
who mi ght , or rather «hmiiH 
But the Wimbledon form of 
this big-serving Czech 
left-hander has been consis- 
tently disappointing. Last 
year's advance to the fourth 
round is his best effort to date. 
Perhaps he will surprise us 
this frrm» 

Another left-hander with a 
lethal serve could be Courier's 
next opponent. But Goran 
Ivanisevic, who so nearly won 
the titlg in that dramatic final 
against Agassi, is nothing if 
not unpredictable. Do not hank 
on him 

In the lowest quarter the two 
former champions from Ger- 
many, Boris Becker and Mich- 
ael Stich. are cast as quarter-fi- 
nal opponents, as they were 
last year when they produced a 
gem of a match, won in five 
marvellous sets by Becker. Let 
us hope we are as lucky again. 

However. Stich has the most 


Richard Krajicek, 
fully recovered 
from injury, could 
beat anyone 


dangerous Boater of all in his 
section. The tall Dutchman. 
Richard Krajicek, fully recov- 
ered from injury, has just won 
on grass in Rosmalen and 
could beat anyone, as he has 
proved on a number of occa- 
sions. Martin (6) is in a differ- 
ent category. A method player, 
he is a delightfully normal, 
well-balanced individual who 
was a finalist in Australia last 
January. He loves the grass 
courts and last year heat Ivani- 
sevic and Wheaton before 
going down to Courier. 

He will be better this time 
and his potential meeting with 
Agassi in the fourth round is a 
mouth-watering match indeed. 
Also defending a title is Steffi 
Graf. Just 25, the German is at 
the peak of her considerable 
powers. Steffi has won the title 
in five of the last six years and 
on a surface where no-one else 
excels she should have some- 
thing in hand. Yet, as we saw 
in Paris, the unexpected does 
occur. 

Mary Pierce is not likely to 
repeat that upset For a start, 
in only her second tournament 
on grass, she lost to a 15-year- 
old Czech, Ludmilla Varmu- 
zova. this week in fire under-21 
event at Eastbourne. Thai her 
first opponent is Julie Halard, 
of France, who has played well 
on grass. 

In the lower half Arantxa 
Sanchez Vicario, the only other 
player who has beaten Graf 
this year, has a difficult first 
match against the middle of 
the three Maleeva sisters. 
Katerina. Then it should be 
plain sailing to the semis and a 
meeting with nine-times cham- 
pion Martina Navratilova. In 
her last appearance, the 37- 
year-old Czecb-bom American 
will be given an emotional 
farewell - whenever it occurs. 

After seeing her loss to Mere- 
dith McGrath at Eastbourne 
this week, I fear it might be 
someone other than Vicario 
who will end the era. 


A t its highest 
level, horse rac- 
ing is an amal- 
gam of glamour, 
money, hope, ela- 
tion and despair, with some 
madness thrown in. To suc- 
ceed, you have to be rich, 
tough, lucky and fanatically 
determined; four of the quali- 
ties that have made En gii s b- 
man Robert Sangster one of 
the world's most successful 
breeders and owners of race- 
horses this century. 

He has made a flying start to 
the 1994 European racing sea- 
son. Already, nine horses 
owned or bred by Sangster 
have won or been placed In 
European classic races. How- 
ever. at Royal Ascot this week 
he was right out of hick. 

He calls himself a horse 
trader. He jets far and wide 
from bis tax-friendly Isle of 
Man base, supervising a blood- 
stock. empire that stretches 
almost to the South Pole. 

1 asked tins 58-year-old about 
bis workload. “Wei" he said, 
“in March I travelled on 20 dif- 
ferent aeroplanes. I was in 
Dubai. I reland, four states of 
Australia, New Zealand and 
the US, where I travelled 
extensively." 

“So you’re tough?” 

*T guess I am. I saw the doc- 
tor this morning, and was 
given a clean bill of health.” 

“How about stress? What is 
it Bite to watch a horse you 
own on the brink of victory, or 
of a photo-finish defeat, in a 
top race like the English Derby 
or France’s Prix de PAre de 
Triomphe?” 

I asked this because I knew 
that in June 1977, when The 
Minstrel, owned by Sangster 
and some partners, was bullied 
by jockey Lester Piggott in the 
English Derby to win by a neck 



Robert Sangster: merging decorously into the background, he is cDffidenee itself 


Lunch with the FT 


Trading his way to the 
winner’s enclosure 

Michael Thompson-Noel meets horse racing's Robert Sangster 


in a savagely dramatic finish, 
Sangster and his trainer, Vin- 
cent O’Brien, bad been reduced 
to jelly. In the years since, 
Sangster must hare watched 
hundreds of pulsating firnqhps 
in which much was at stake. 

“Yes, it can be stressful." he 
replied. “At this year’s Epsom 
Derby I was watching a TV 
screen as my horse. Colonel 
Collins, made his finishing 
burst, and some one slammpd 
me on the back and shouted: 
'Robert, you’ve done it!’ By the 
time Td picked my binoculars 
up, Erbaab l tbe 7-2 favourite] 
had charged past my horse and 
won. Yes . . . something like 
that raises tbe old blood pres- 
sure" (Colonel Collins finished 
third). 

I had arranged to meet 
Sangster at The Square, an ele- 
gantly contemporary restau- 
rant in St James's, London. In 
the event, he asked if we could 
switch to Wiltons, a gamey, 
establishment joint in nearby 


Jermyn Street We could talk 
for an hour, then join a lunch 
being held to celebrate the 
wines of Domaine Ott Sangs- 
ter has a house in that part of 
southern Fiance. 

I agreed. We chatted Then 
we joined the all-male group 
that had gathered to enjoy 
lunch (crab, fish, raspberries) 
at Domaine Otfs erpanae. It 
was an amusing, powerful 
group. All were rich and 
sporty. Many owned race- 
horses. One of them at op- 
table was a young Tory minis- 
ter from the House of Lords. 
“Yes, my lord." the waiter kept 
saying. “Yes, my lord." 

I could not work out what 
the group was for, so I asked 
one of its members, a City 
businessman. I said: “What is 
thp common denominator?" 

And he said; “Piss artists." 

In company such as that, the 
quietly-spoken . Sangster 
merges decorously into the 
background. He is diffidence 
itself. He could be a bishop. If 
you passed him in the street 


you probably wouldn't notice 
him. But he is friendly and 
direct and says that he enjoys 
the social side of racing. 

“The people I deal with - 
trainers, jockeys, bloodstock 
agents, fallow owners - are all 
very good friends. At Royal 
Ascot I and my wife entertain 
30 different people to lunch on 
each of the four days, and 1 
enjoy that" 

The value of the horses that 
have passed through his hands 
easily exceeds $lbn. As a 
trader, he spreads his risks, 
and is always willing to buy 
and selL Worldwide, his blood- 
stock holdings indude a great 
many broodmares, y earling s — 
he keeps some and sells others 
- horses-in- training and shares 
(usually a 25 per cent stake) in 
about 20 top s tallio ns. 

For example, he owns 25 per 
cent of the Irish-based Sadler’s 
Wells (stud fee; £125,000), 
which he describes as “proba- 
bly the best racing stallion in 
the world". There are 40 shares 
in Sadler’s Wells. The last 



Share to chang e hands did SO 
. for £500,000. says Sangster. 

“You’re a dealer," I said. 
“You buy and sell. Suppose I 
had Elm to spend. What would 
you sell me?” 

Tbe horse-trader smiled. He 
barely paused to think. “All 
right" be said. “At this point 
in the English season [June 9] 
I’ve had three two-year-old run- 
ners, and all three won then- 
first races impressively. For 
Elm, I would probably advise 
you to take a one-third stake in 


each of them." 

“Would that be good for you? 
You’d show a decent profit?” 

“I would.” 

“Would it be good for me?" 

“It would. There is a chance. 
I'd say, that one of them will 
win a classic; that the second 
will fare extremely well; and 
that the third - well, that 
might bang a knee tomorrow 
and never be heard from again. 
But at Elm for the three, you’d 
be all right As the vendor, Td 
want you to come back - to do 
business with me again. You’d 
be better off buying a £333^333 
stake in those three than 
spending Elm at tbe sales in 
Kentucky." 

(Elm does not go far in rac- 
ing. All three of these crea- 
tures ran at Royal Ascot, and 
none won, thnog h Helmsman 
was only narrowly beaten. One 
of them. General Mo nash, was 
injured). 

“Do you bet?" I asked Sangs- 
ter. 

He was bom to wealth, and 
is an expert on betting. He 


inherited Vernons Pools, a 
business that takes bets on soc- 
cer matches, before selling it to 
Ladbroke, and was involved in 
setting up large-scale lotteries 
in Australia and New York. He 
sold Vernons five years ago 
because, he says, he heard the 
authorities were considering a 
national lottery in Britain. 
They were, it starts In a few 
months, and is expected to 
knock pools-betting for six. 

“Yes," he said, “if I go racing 
HI have a bet for fun." 

"What, to you, is a big bet?" 

“A monkey: £500." 

“You're successful?" 

“I show a profit once in three 
years. I could make a profit 
every year, but I'd be very bor- 
ing about it I would probably 
only have five bets in the year, 
and only two would win, but 1 
would show a great profit." 

The speculative madness 
that infects the racing game in 
cycles can be gauged from tbe 
roller-coaster fluctuations in 
bloodstock prices, whether for 
yearlings sold at auction or for 
stallions being floated on the 
international market 

For instance, in 1984-85, 
when the racehorse market 
was in frenzy, Sangster's 
bloodstock empire was esti- 
mated, by accountants, to have 
been worth almost 5350m. By 
1992, values had crashed, and 
Songster's empire had shrunk 
in value to $160m or so. 

Values are recovering now. I 
asked the master horse-trader 
how his fortunes stood. 

“It's difficult” he said. “Until 
you come to sell something - a 
horse or a painting - you don't 
know what it is worth. But the 
whole bloodstock industry 
today is reckoned to be worth a 
quarter of what it was worth in 
the early 1980s. In 1992. after 
an intense campaign to extract 
maximum value for him, I sold 
one of my horses, Rodrigo de 
Triano, to Japan for S6m. 
whereas 10 years previously I 
had sold Assert a fairly simi- 
lar sort - similar breeding, the 
same sort of racehorse - to 
Kentucky for $24m. 

“If I was selling Rodrigo 
today, he’d probably be worth 
$l0m. In the early 1980s, 50 
yearlings would have been sold 
at international auction for 
Slm-plus each. Today, it is only 
eight re nine.” 

As a horse-trader, one of 
Songster's attributes is memo- 
ry-power. Others: shrewdness 
and competitiveness. And he 
still studies hard: still pores 
over racehorse pedigrees and 
other data. 

If you were interested in the 
glam-mad world of interna- 
tional racing, you would be 
delighted by his company. If 
you knew nothing about rac- 
ing, his stories would make 
your eyes pop. 


T hirty years ago their 
rivalry was such that 
the American golfing 
public decreed it to be 
a clash between the good guy 
and the bad, with Arnold 
Palmer cast very much in the 
former role and “fat" Jack 
Nicklaus in tbe latter. 

Of course, the sport's follow- 
ers learned in time to shower 
an equal amount of affection 
on Nicklaus. 

For a start, there is nothing 
that America likes more than a 
winner and no one ever won 
like the Golden Bear. 

But it is only in recent times 
that their own personal differ- 
ences have eased to the extent 
that they could kindle a friend- 
ship. Now, wherever there is a 
golf tournament, and in partic- 
ular a major championship, the 
pair are often to be found in 
each other's company and they 
will always play at least one 
practice round together as 
partners. Perhaps they are 
making up for lost time. 

Nicklaus. with tbe nice line 
in deprecation he has devel- 
oped since his golf skills have 
diminished, puts it this way: 
“Thirty years ago we played a 
very competitive game against 
one annthpr knowing that who- 
ever won would invariably win 
the golf tournament as welL 
Now we play a very competi- 
tive game to see who avoids 
having the wooden spoon." 

These days of grace are 
slowly coming to an end, 
though, or at least the public 


Golf/ Derek Lawrenson 


Rivals become partners 



K is as if Jack KcMaua (ton) cannot beer the thought of turning up at a 
major championship at which there is no Amok! Pafcner 


aspect of It Palmer has already 
given up visiting Britain to 
play in the Open champion- 
ship; and at Oakmont, Pennsyl- 
vania. on the eve of the US 
Open, he announced that this 
would also he his last appear- 
ance in the second of golf’s 
four majors. 

It is an appropriate place at 
which to take his leave. It was 
in 1942 that Harry Saxman 
decided that the 12-year-old 
Palmer, who was bom just 10 
miles away at Latrobe, had 
already acquired enough golf- 
ing skills to experience the glo- 
ries of Oakmont 


By 1952. with Oakmont in 
the process of being split by 
the Philadelphia turnpike, then 
under construction - seven 
holes on one side of the road 
and 11 on the other - Palmer 
bad already begun building 
bridges between the trad- 
itional game of golf and the 
modem. 

Palmer was the sport’s Elvis 
Presley; he introduced an ele- 
ment of dare and panache. 
Palmer respected all the 
game's codes and discipline 
but he tore up tbe unwritten 
laws about playing sensibly 
and carefully. Peter Thomson 


won one of his five Open titles 
by never using a driver off tbe 
tee. 

Such an idea was anathema 
to Palmer. Wfa idea of the game 
was to hit the ball as far as 
possible, find it. and hit it as 
far as possible again. 

Even today, he is a superb 
driver of the balL He can still 
hit it 250 yards. But there are 
vast areas of Palmer’s game 
which betray the fact he is in 
his sunset years. His iron play 
is poor, his chipping mediocre 
and his putting downright 
awfuL 

What he has never lost Is his 
enthusiasm for the sport. 
“There are days when I just 
can’t do a damned thing right 
and that's hard for me to bear. 
But this game, it's my soul in a 
way and there will always be 
something during a round that 
will give me pleasure and start 
me back to thinking that I can 
still play the way I want to 
play." 

At Oakmont on Wednesday, 
the fact that Palmer did not 
walk down the centre of the 
fairways had nothing to do 
with inaccuracy. He had to 
talk with his people. 

They called him Mr Palmer 
and they applauded rather too 


loudly when bis ball finish ed 
40ft from the Bag. 

Nicklaus was playing poorly, 
too. He won the US Open here 
in 1962. defeating Palmer in an 
18-hole play-off and in 90 holes 
be bad just one three-putt. In 
his final practice round - alone 


this time - he had seven. 

Nicklaus has also recognised 
that the game which made his 
name has moved on. He has 
hinted that t h is could be his 
last US Open, too. 

There were days when Nick- 
laus could not stand the sight 
of Palmer - the player with the 
looks, the style and the sup- 
port of the crowd. Now it is as 
if he cannot bear the thought 
of tnming up at a major cham- 
pionship without the man he 
has finally learned to call part- 
ner. 


) ne could perhaps be 
forgiven for won- 
dering whether 
Oxford University's 
anding success last year 
matches, two wins and 

draws in their first sea- 

undefeated since 1900 - 
partly attributable to a 
al of the sport-above-all 
don. 

cn of the 1st XI went to 
\ a college much more 
as for its cricket rogby 
‘owing than for its books 
1 was at Oxford in the 
960s. And six of the team 
graduates and experi- 
[ sportsmen. 

[ l was assured by Dr 
it porter of Nuffield Col- 
and hon treasurer of 
rd University Cricket 
that brains are what 

rrS. , , 

rains arc good. Tor 
et," he said. 

ie Atherton today, and 
Brearley in the 1960s, 
both captained Cam- 
V and England, and both 


Cricket /Teresa McLean 


Learning at Oxbridge 


always give tbe impression 
that they have an idea in 
reserve while on the field. 

So how valuable Is cap- 
taincy? “It’s crucial. Clever 
captains win matches. Ray 
Illingworth understands that; 
he did it himself. Away from 
university, 1 know, but I 
wouldn’t be at all surprised if 
he works well with Atherton,” 
said Porter. 

Atherton is at once a mod- 
em and a traditional figure of 
Cambridge cricket - modem 
in that be worked hard and 
did well academically; tradi- 
tional in his captaincy and 
hatting skills. 

In the past, cricket often 
mattered more than academic 
ability in retaining a place at 
Oxford or Cambridge. Ian Pee- 


bles kept a place at Braesenose 
College, Oxford, in 1929 
because he was playing cricket 
well for Middlesex. Worried 
about his law prelim, he asked 
his tutor how he bad done. 

In his autobiography A Spin- 
ner's Yam he describes the 
tutor’s answer: “He eyed me 
with doleful countenance. ‘You 
got l per cent in one subject,’ 
he said ‘But yon were not 
quite so successful in the oth- 
ers.”' 

Peebles was not salt down 
and took 13 Cambridge wick- 
ets with his ieg-spi oners in the 
1930 Varsity Match. 

Today, students work hard 
at both. “Some of otzr present 
chaps are exceptional. They do 
two or three hours work early 
in the morning, play cricket 


all day, then work two or 
three more hours in the even- 
ing. I admire that It only 
works with a good coach [John 
Lenham of Kent] to keep them 
keen and well trained," says 
Porter. 

Strong hatting and fast field- 
ing, including wicket-keeping, 
have always been undergradu- 
ate specialities, usually along- 
side uncertain bowling. I was 
not surprised that most county 
cricketere picked oat the 
youth and fragility of univer- 
sity cricket as part of its 
appeal - probably because it 
can be plundered for cheap 
hatttng points. 

Bat Oxford and Cambridge 
hold op their weaknesses in 
defence of their first-class star 
tns. “Young players get a 


chance to develop in another 
system besides the county sys- 
tem to help them learn the 
game.” says Porter. 

But the reality is that uni- 
versity cricket is seldom good 
enough to compete with 
county cricket In 1878 Cam- 
bridge University beat the 
Australians and clearly had 
plenty to teach anyone who 
was interested. No one would 
expect Cambridge to beat Aus- 
tralia now. 

Even so, Kim Barnett of Der- 
byshire was just one of several 
county captains who men- 
tioned Cambridge and Oxford 
as good teaching places for 
county, as well as university, 
players. 

He explained: “We like to 
blood our younger and less 


experienced players against 
Cambridge. It gives them a 
first class game In a friendly 
atmosphere. An early fixture 
against Cambridge helps us to 
work up to frill power for tbe 
season." 

Oxford University v Cam- 
bridge University is the oldest 
first-class cricket fixture. First 
played in 1827, it has tradi- 
tionally had an air of glamour 
and panache, like all cricket 
played by the two universities. 
This year’s match take place 
at Lord’s on June 29. 

But there is a danger that 
Oxbridge cricket could fall 
short of first-class cricket, on 
the road to its own first-class 
extinction. 

It is time Oxford and Cam- 
bridge helped their cricketers 
fight the cause of university 
cricket Variety is the spice of 
life and a variety of cricket is 
the spice of a first-class sum- 
mer. 

Bring on the cricket-loving 
tutor, distributing practice as 
well as lecture timetables. 


€ B € L 

the architects of time 





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WEEKEND FT XIII 


FOOD AND DRINK / MOTORING 


New lease of life for an old grape variety 


I I ever there were an argu- 
ment that every grape vari- 
ety has its perfect place, then 
Mendoza Malbec is it In the 
rest of the world Malbec is 
hardly on® of the great grapes. Once 
widely grown in Bordeaux, it is now 
effectively known only in Cahors, 
where it is called Got or Auxerrois, 
and generally turns out rather 
tough, charmless, essentially coun- 
try wines - in spite of the millions 
of francs poured into Cahors by 
well-heeled Parisians and New 
Yorkers pursuing a vineyard hobby. 

In the higher temperatures and 
richer soils of Mendoza, however, 
Argentina’s main wine-making 
province just east of the Andes, 
Malbec seems to luxuriate. The 
wines it produces are lush, rich, 
heavily spiced and yet the best of 
them have enough add and tannin 
to make them appetising bets tor 
long term ageing. 

Not that Malbec is at all revered 
in Argentina. It is one of the cheap- 
est red grape varieties, emnTmnuHng 
considerably less of a price than the 
more glamorous Meriot and Caber- 


Jancis Robinson considers the merits of Malbec when it is grown east of the Andes, in Argentina 


net Sauvignon - perhaps because it 
sounds less obviously French, espe- 
cially when spelt Malbec k, as it 
often is in Argentina. And in the 
vast domestic wine market (about 
the same size as the entire US), 
French names enjoy the greatest 
cachet, no matter how irrelevant 

Carcassonne, for example, is the 
curious n a me of a popular blend of 
Cabernet and Malbec, and its popu- 
lar sister blend of Malbec, Merlot 
and Syrah Is called Pont nsvfique, a 
particularly smelly French cheese. 

Malbec's ubiquity in M e ndoza 
doubtless militates against its glori- 
fication. Far long it was the most 
planted red wine grape (although a 
vine pull scheme has led to its 
being overtaken by a grape called 
Bonarda, which may be the same as 
California's Charbono). 

Parts of Mendoza can be 
extremely hot, as witness the 
plane trees which flank so 
many of the main roads, but LqjSn 
de Cuyo, to the south of Mendoza 


city (with Vistalba the highest sub- 
district), seems to offer perfect con- 
ditions for Malbec. At an altitude of 
about 900m (nearly as high as Swit- 
zerland’s highest vineyard, for 
example), it offer suitably cool 
nights even in late summer. 

With unlimited sunshine and 
unlimited irrigation water from the 
Andes Mendoza has been one of the 
world's most productive wine facto- 
ries since Spaniards and Italians 
settled here in the late 19th century. 

Mendoza’s major natural disad- 
vantage is its minute annual rain- 
fall of about 180mm (4%in) - 500mm 
is generally considered a viticul- 
ture! minimum without irrigation - 
of which about 150mm falls at har- 
vest Hme, often in the devastating 
form of hail. Growers just have to 
redcon on sacrificing between 10 
and 20 per cent of each year's crop. 

Raul de la Motta of Weinert, "the 
small winery producing big wines" 
from carefully bought-in grapes, has 
made more than so vintages there 



and is one of the few Argentines to 
recognise that Malbec might be the 
Argentine wine industry's trump 
card. 

"The whole world makes Caber- 
net, but with Malbec, our wines 
have distinction. Malbec ages very 
well here.” He can demonstrate the 
gamey, wild animal smells of young 
Malbec as well as the mellower, 
richer characters of Malbec aged for 


more years than would be thought 
wise in France in the giant old oak 
vats that characterise this wine 
industry ripe for renovation. 

Weinert believes in blending Mal- 
bec, which with Cabernet forms 
about a third of his delicious Cavas 
Weinert blend, exported to the UK 
and US. and most of the bargain- 
priced Carrascal for the domestic 
market 

In neighbouring Agrelo, Mofit & 
Chandon has been experimenting 
with ageing Malbec (and Cabernet, 
and of course Chardonnay) in small 
French oak barriques, with aro- 
matic, juicy, well structured results. 
They are launching these new- 
fangled varietals in Argentina 
under the name of the winery's first 
penologist Luckily, for marketing 
reasons, be was called Renaud Poir- 
ier rather than Reg Pratt 

A new Anglo-Saxon name on the 
Argentine wine map, however, is 
Peter Bright, the Portuguese-based 
Australian winemaker who has 


been cooking up some fine blends 
on behalf of the British supermar- 
ket Salisbury's at Pehaflor/Trap- 
iche, Argentina's biggest producer, 
also based in Mendoza. For long a 
champion or Portugal's rich heri- 
tage of native grape varieties, he 
was quick to see the potential of 
Malbec, and Bright Brothers’ Mal- 
bec 1992 Las Palmas, available at 
£5.45 in 60 Sainsbury's, is worth 
seeking out 

Other forward-looking winemak- 
ers. who have discovered that Men- 
doza Malbec has an affinity with 
small oak barrels, include Alberto 
Arizu at Luigi Bosca, who is 
actively looking for importers for 
Rnp wines which include his 1991 
from 40 year-old vines; Nieto 
& Senetiner/Valle de Vistalba/ Santa 
Isabel (exported to Switzerland); 
and Bodega Norton, into which vast 
sums are being poured by the Swa- 
rovski family of Austria. But that is 
another, extremely promising, 
story. 


_ Sainsbury's Argentinian Malbec 
Cabernet is £3.49 and is even fuller 
than the older blend it replaces next 
week (other Trapiche wines are 
available from Grape Ideas of 
Oxford on 0365-791313). A few 
branches of Sainsbury’s also stock 
Cavas de Weinert 19S5 at £6.95, but 
John Armit Wines of London Wll 
(071-727 6846) has a wider range, 
including Carrascal 1985, at £94 a 
case. Berkmaan Wine Cellars of Lon- 
don N17 (071-609 4711 ) imports Nor- 
ton’s fine wines, including a small 
quantity of an extrao rdinary, recent- 
ly-bottled Malbec 19S1 

■ Booths supermarkets, Bute Wines 
of Scotland (0700-502730), Christo- 
pher James of Exeter (0392-73894). La 
Vignerorme of London SW7 (071-589 
6113) and Mayor Sworder of London 
SEll (071-735 0385) stock Argentine 
wines from Navarro Correas of 
Maipu. Its Cabernet Sauvignon 19S8 
gives a great deal of full-blooded 
pleasure for abour ES.50. The 
importer feels that Malbec is not a 
sufficiently well-known name to be 
worth importing. 


Cookery /Philippa Davenport 

Count your 
free-range 
chickens 





\ V 

L N 


f- 


M any cooks struck 
veal and chicken 
off their menus 
when details of 
intensive - often 
cruel - production methods filtered 
through to the public. The resulting 
drop in sales led to fanners making 
extra efforts to grow meat more 
kindly and the results are becoming 
available more widely. 

Genuine free-range chickens have 
been available for some time at 
good supermarkets and specialist 
butchers (although, alas, it is 
increasingly difficult to find a 
rfiirfmn complete with its giblets). 
More recently, whole free-range 
fhydfgns have been joined an super- 
market shelves by free-range 
riiteken joints - packets of breast, 
thi g h , drumstick or wing meat that 
are very handy indeed for quick and 

easy meals. 

Veal produced by humane meth- 
ods is also becoming easier to buy. 
The Quantock system, a more 
h umane method of raising calves, is 
a definite step forward from the 
so-called New British Standard 
method and foe intensive crate sys- 
tem. Fully free-range veal is rarer 
than the Quanta* variety - but it 
is preferable and worth asking for. 
This is foe meat of calves raised 
with their mothers and slaughtered 
at the weaning stage, rather than 
grown on as beef cattle. 

Unlike intensively reared veal, 
which is anaemically white and 
fine-textured but almost tasteless, 
foe free-range meat is pearly pink 
and tastes like very mild and sweet 
young beef. . 

SCALLOPING AL BALSAMXCO 
(serves 4) 

Veal sauced with Marsala was a 
favourite entrte of the late 1950s 
and early 1960s, and very goodit 
was. too. I have replaced the forti- 
fied wine with balsamic vinegar to 
give the dish a new lease erf life in 

the 1990s. _ , ; , 

Ingredients: lib (or just under) 
escalopes of veal (or escalopes of 
pork); l<w unsalted butter, 3-4 
tablespoons balsamic vinegar 4 
tablespoons stock; 3-i tablespoons 
thick cream (optional) 

Method: Heat a large saute pan 
until very hot. Add foe butter and, 
when foe butter foam dies down, 

P eugeot’s new peopla- 
carrier, the 806, is just 
fin (5cm) longer than 
a 405 estate and a full 
lgtn (45cm) shorter than the 
old 505, a jumbo-sized estate 

regarded highly by parents of 

three or more children. They 
know only too well that to 
travel legally, safely and com- 
SEbly mfamiUe with lug- 
gage, you need three rows or 
forward-feeing seats and a rea- 
sonable boot. 

Cars with these axe few and 
for between. The 5K and foe 
equally spacious CitroSn CX 
went long ago. althougbReu- 
ault still has three-row 21 
Savanna estate. Otherwise, it 
has to be a multi-purpose 
vehicle (MPV) such as the 
Toyota Previa. Renault Espace* 
Nissan Serena or, rf 
mainland Europe, Chrysler 


saute foe veal in batches for 2-3 
minutes on each side (or less if the 
meat has bean beaten very thinly). 
Remove and keep hot 
Add foe vinegar and stock to the 
pan. Scrape and swirl the mixture 
around, letting it bubble up and 
blend. Add the cream if using it, 
season to taste, and continue bubbl- 
ing briefly to make a smooth, very 
savoury sauce. 

Turn the heat right down. Return 
the meat to the pan, taming each 
slice as you add it to coat it with 
the sauce. When all are in, tip the 
contents of the pan an to a wanned 
serving dish. Wilted spinach scat- 
tered with toasted pine nuts goes 
well with this dish. 

LEMON TARRAGON 
CHICKEN WITH 
COURGETTES 
(seroes 4) 

Ingredients: 4 small boned and 
skinned chicken breasts weighing 
3Y*-4oz each; l%lb courgettes; 2oz 
unsalted butter; 2 tablespoons 
lemon juice; 2 slightly heaped tea- 
spoons chopped fresh tarragon. 

Method: Separate foe small fillets 
from the chicken breasts. Then, 

slice the main part of each breast in 
two to make two thinner s l ice s . Cut 
foe courgettes into batons. 

Heat a large saute pan until very 
hot Add a little of the butter and, 
when foe butter foam dies down, 
fry foe courgettes until streaked 
with gold and just cooked through. 
Remove and keep hot 
Add a little more butter to the 
pan and saute the chicken a few 
slices at a time until gilded without 
and tender within. Remove and 
keep hot 

Add foe rest of foe butter, the 
lemon juice and a teaspoon or two 
or water to foe pan. Scrape, swirl, 
let the mixture bubble up, and sea- 
son with salt pepper and tarragon. 
Turn off foe beat but leave foe 
where it is. Slip the chic ken , 
quickly into the pan and turn the 
slices to coat them with foe fra- 
grant, butteary juices. 

• Lay the meat mi a wanned serv- 
ing dish, tip foe courgettes into the 
pan , and toss to anoint the m wi th 
the remains of the sauce. Arrange 
the vegetables alongside the 
Ahirtren and serve with new pota- 
toes or basmati rice. 


- - -- 






Battery bint: ktoefly cook* should seek out free-range chfckans 


PanteMa 


Wine auction nets £1.4m 


A cellar of some of the 
world’s finest wines was 
auctioned in London this 
week for a total of £L4m. 
It took place at Christie’s on 
Thursday and, with the auctioneers 
holding 320 different commission 
bids before foe first of foe three 
auctions started, bidding was 
always likely to exceed the already 
high reserves. Prices for the 
younger wines were considerably in 
QTPptig of current retail levels. 

Most wines were bought by pri- 
vate buyers with representatives of 
the American, Swiss, German, 
French and Hong Kong wine trade 


flying in and out, some emp- 
ty-handed. A leading British wine 
merchant, prepared to spend up to 
£500,000, came away with two cases 
and calculated that foe British wine 
trade bought less than 1 per cent 

A private British bidder spent 
more than £500,000 on rare bottles, 
hwinriing the first of two “super- 
lots" for £340.000 (estimate £200,000). 

Other record-breaking prices 
were: a case erf Cheval Blanc 1947 at 
£18,000 (estimate £4^00); Haut Brion 
1961 at £6900 (£L200); Gruaud-La- 
rose 1961 for £2,400 (£1.800) and a 
caseof the rare Pomerol Le Pin 1982 
for £3J300 (£2,000). Until recently a 


bottle of this last wine was on foe 
wine list at the Dun das Arms, Kint- 
bmy, for £50. 

At Sotheby’s on Wednesday three 
Nebuchadnezzars (20 bottles- worth 
each) of Chateau Mouton Roths- 
child, 1975, 1982 and 1390, were sold 
to a Japanese buyer for £36.300 - 
seven times the estimate. Some 32 
other lots of Mouton raised £89,375: 
the first Jeroboam (six bottles) of 
C&apoutier’s Ennitage Le Pavilion 
1990 sold for £572 and bottles of the 
Salon champagne 1979, 1976 and 
1974 reached £286- £330 each. 

Nicholas Lander 


Appetisers 

Ch Climens - 
drinking well 


C hdteau Climens of Barsac 
has an average produc- 
tion of 4,000 cases and is, 
in quantity, eighth of the 
12 first-growth Sautemes, but is sec- 
ond in quality only to Yquem. 

Past vintages are hard to find in 
the UK but recently Threshers held 
a vertical tasting of 10 vintages 
from 1991 back to 1980. with the 
1976 served at the following l unch. 
In spite erf variations, all were very 
drinkable. 

1991 - light golden colour, rich 
nmgp, already fairly well developed 
flavour. 

1990 - less colour, less aroma and 
taste very dosed, but with fine 
prospects for the future. 

1988 - lighter in colour tha n fo e 
*90, but more mature, botrytis 
(noble rotXnoble rot) on foe nose 
and flavour. A typical fine Sau- 
temes. 

1988 - the first of three accla im ed 
Sautemes vintages, it was more 
backward than the ’89, with 
medium gold colours, restrained 
aroma, good currently, not excep- 
tional 

1986 - one of Sautemes* finest 
years. Good but not too deep colour, 
very rich nose and botrytis flavour, 
fine balance, and long in the m outh. 
1985 - lacking botrytis in a very 
dry year, but a ch a rmin g, appealing 
flavour. Perhaps at its best 
1983 - tixe first top vintage of foe 
de cade . luscious and rich, simil ar to 
the '66. 

1982 - difficult to taste after the '83. 
Fair, agreeable drinking, but lack- 
ing length and character, parallel- 
ling the exceptional reds. 

1981 - better than ’82, agreeable 
drinking, but lacks character and 
botrytis at best now. 

1980 - very deep colour, lacks bal- 
ance of acidity and so rather heavy 
on the palate. The 76 at the lunch 
had medium gold colour, a very dis- 
tinguished bouquet, and luscious, 
complete flavour, the best vintage 
until '83. 

Threshers lists the 1991 at £ 219 9 a 
bottle. Bottoms-Up offers a case of 
six single bottles, the 
Bl f B9,B5,B2,Bl and B0, for £180. 

Edmund Pemring-Rowsell 
■ Seventeen privately-owned Pride 
of Britain hotels, including Mich- 
ael’s Nook in foe Lake District, Cal- 
cot Manor in the Cotswolds, and the 
Elizabethan Whitechapel Manor in 
North Devon, have dreamt up an 
appealing offer for July and August 
this year. For £75 per person per 
night, they offer de luxe twin or 
double accommodation plus dinner, 
breakfast, and a bottle of Piper 


Heidsieck on arrival The only stip- 
ulation is that foe stay must be for 
at least two nights. 

Jands Robinson 
■ Three new(ish) eating out guides 
to look for. The first is Richard and 
Peter Harden’s clever adaptation of 
their exhaustive restaurant data 
hank , Good Cheap Eats in London, 
which includes 400 entries, maps 
and lists and costs £3.95. 

The second, for the computer lit- 
erate, is the software application of 
Time Out’s guide to run on Apple 
Computer’s Newton MessagePad. It 
includes 700 London restaurants, 
costs £5495 plus VAT, and is avail- 
able from Dixons, Ryman and John 
Lewis. 

Finally, Maureen B Fant, an 
American who has lived in Rome 
for the past IS years, has Just pro- 
duced a comprehensive guide to eat- 
ing there entitled Eat like the 
Romans (110 pages. £5.95 plus p&p) 
available in the UK from Great Wen 
Publications, PO Box 1500, London 
SW5 QDX, fax 071-370 4459. 

Nicholas Lander 
U In London, twin brothers Mark 
and Max Renzland have moved 
ag ain and , although Le Petit Max 
remains in Hampton Wick (081-977 
0236). they have resusitated Chez 
Max at 168 Ifield Road, London 
SW10 9AF (071-835 0874). ppen 
lunch and dinner with a set dinner 
menu at £1990. NL 

■ Two new West End eating places 
with user-friendly hours include the 
Atlantic Bar and Grill, 20 Glass- 
house Street. Wl (071-734 4888), 
which is now open Monday-Satur- 
day noon to 3am and Sunday 11am- 
4pm- And at 245 Shaftesbury Ave- 
nue, WC2, a restaurant called 
Alfred Is open Monday-Saturday 12- 
tom and 6pm-lL45pm (071-240 2566). 

NL 

u Canadian expatriates might like 
to celebrate Canada Day, on July L 
at London's Savoy Hotel where 
chef David Sharland will be includ- 
ing Canadian lobsters on a special 
menu. First courses will be £7.50 
each and main courses £1395. The 
Canadian theme at the hotel will be 
running until July 9. (071-836 4343, 
fax: 240 6040). dill James 

■ When she was at Books for 

Cooks in Nottdng Hill Gate, west 
London, Clarissa Dickson Wright 
was a godsend for any London 
writer seeking help, corroboration 
or advice on a recipe. Now she has 
opened Global Gourmets to market 
and deal in cookery books world- 
wide at 43 Argyle Place, Edinburgh 
EH9 LIT. Tel: 031-221 1101, fax 
031-229 4747. NL 


The 



Motoring/Stuart Marshall 

-seater that acts like a car 


V ' Thesame criticism applies to 


MOTORS 


Larg4*i 

LEXUS 


JEMCA a 



conventional estate cars 
(Volvo, Mercedes-Benz, Rover 
Montego, for example) having 
a pair of child seats that pull 
up from foe load floor. These 
face backward and children 
tend not to like them for any- 
thing but short trips. Parents 
worry about their vulnerability 
to rear-end collisions - with 
good reason, I would think - 
and luggage space disappears. 

For 10 years, the Renault 
gspace has been Europe's best- 
selling MPV. Arguably, it is 
still the most stylish, but this 
week it came under assault. 
Peugeot’s 806 “monospace” 
MPV, which has up to eight 
seats, went on sale in France 
priced between FFr139,000 
(about £15950) and FFr202,000 
(£24,630). That is FFr5,000 to 
FFr7,000 (say £610 to £850) 
cheaper than a comparable 


... ' 

:• • ?.*. . . *■*• ■ 
» :• > • v 



TIib Peugeot 006: a we! interior offering a twn2y freedom of 


The 806 - and its soon-to- 
appear Citroen, Fiat and Lan- 
cia clones - has been a joint 

p$A (Peugeot-Citrofin) and Fiat 

project because neither group 
could have afforded to go it 
alone. For foe same reason. 


Ford and Volkswagen have got 
together to produce their own 
MPV, due for launch in 1595. 

At the moment, the 806 is 
offered only with 16-valve two- 
litre petrol engines, one of 
them turbo-charged, although 


a diesel follows soon (and, per- 
haps, a V6 later on). 

Unfortunately for British 
families, 806s with right-hand 
steering are at least a ye ar off 
althoug h a few left-hand drives 
will be available before then. 


Holiday-home owners^ who 
spend a lot of time driving on 
mainland Europe might well 
fancy one. 

Hie 806 has a well thought- 
out interior offering a family 
freedom, of movement There 


are two normal front doors, 
two large sliding ones for foe 
middle and back row passen- 
gers, and a large tailgate. The 
seats can be moved around or 
taken out as needed. 

Getting hi and out Is particu- 
larly easy. The floor is flat, the 
gear lever sprouts from the fas- 
cia, and the hand-brake is 
tucked away between the driv- 
ing seat and door. A high seat 
gives the driver an unusually 
co mmanding view of the road. 

This apart, an 806 goes just 
like a car. Trying both models 
in France last week, I found 
them unperturbed by rough 
surfaces, nimble on curving, 
hilly lanes, and pleasantly 
quiet at autoroute cruising 
speeds- 

The 150-horsepower turbo- 
charged version was particu- 
larly lively mid pulled like a 
train up gradients. The 123hp 
non-turbo engine was muscu- 
lar enough driving two-up. 
although I suspect it might 
have to work fairly hard when 
propelling an SOS crammed 
with people and baggage. 

The ride was as good in the 


middle and back-row seats as it 
was up front with generous 
leg, knee, head and elbow 
room. Standard power steering 
and large exterior mirrors 
wade parking this roomy, but 
far from bulky, car very easy. 

A hard-driven MPV will 
always use more fuel than a 
sleeker, more slippery saloon 
but a sensibly-driven, non- 
turbo 806 should average 
28m pg (10 l/100km) and the 
turbo 27mph (10.46 1/I00km). 

While In France. I also tried 
the latest versions of Peugeot’s 
big luxury car, the 60S. 11118 
has bad a modest, mid-life face- 
lift and has been given two 





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For stockists, 
tel: 071-409 7276 


new engines: a two-litre, multi- 
valve, petrol four-cylinder and 
a 29-litre turbo-diesel with two 
balance shafts. 

The 605 has not made much 
of a mark in Britain, one possi- 
ble reason being that it is easy 
to confuse with the cheaper 
and less prestigious 405. But it 
is an urbane and very comfort- 
able car with a superb ride and 
an enormous boot I thought 
the two-litre went well but the 
turbodiesel was better; higher 
gearing made it quieter and 
more relaxed on the autoroute. 

Alas, the ultra-refined, I30hp, 
2.5-litre turbo-diesel 605 will 
not come to Britain. Executive 
rfass car drivers in France do 
not mind manual gearboxes, 
but most in the UK insist on 
automatics - and Peugeot does 
not have one that can cope 
with the 2.5’s huge torque 
(pulling power at a given 
engine speed). 


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HOW TO SPEND IT 


Roller-blading hits town 


F orget the gentle swish of 
le a ther on willow or thwack 
of tennis ball and racket 
The new sound in the parts 
this summer is the whoosh 
of roller-blades on tarmac. 

Roller-blading has hit London in a big 
way - and it is not just the teenage set 
that has t aken it up. 

RoDer-bladlng started in Minnesota in 
the early 1980s as a means of honing 
ice-skating skills during the summer. 
Then people besides sportsmen realised 
ft was fun and it became a more general 
activity. 

In the UK it is just beginning to take 
off. whereas in New York roller-bladers 
are every wh ere. Tn New York it is a 
new form of public transportation,” 
says Eric Reguly, London correspon- 
dent of the Canadian Financial Post 
and once an ice-skating star. “It is also 
culturally acceptable - in most stores 
in New York you can go into a store on 
your roller-blades; you could go to the 
most expensive restaurant and nobody 
would look at you twice. Executives 
roller- blading to work in their Armani 
suits are a c omm on sight” 

Eric himse lf roller-blades in the parks 
in London but is more nervous of roller- 
blading to work because of the traffic. 
“In New York they are not confined to 
the parts: they can be seen all over the 
streets and New York drivers, having 
become used to the many bicyde couri- 
ers. seemed to have no trouble adapting 
to roller-bladers. People do it for fun, 
for exercise and for transport" 


He started in his early thirties having 
resisted it initially "because I thought I 
was too old for it but my doctor recom- 
mended that I took it up for my back - 
it's great for your muscles and is good 
aerobic exercise without damaging 
joints. Many runners and joggers who 
have been told to stop running because 
of the damage it was doing their joints 
have taken ft up.” 

ft is not difficult to learn and any- 
body who already knows how to 
ice-skate should pick it up very quickly. 
The mam problem seems to involve 


stopping: ice-skating has techniques for 
stopping; but there is no emergency 
stop for roller-bladers - only diving on 
to the nearest grass, or making a couple 
of 360-degree turns, or doing a T-stop 
(but that wrecks the wheels). 

Lessons are available for those who 
do not know how to ice-skate. In Lon- 
don, Road Runner, Unit 002, Lancaster 
Road, (c/o 253, Portobello Road, London 
W1L TeL 071-792 0584) will organise les- 
sens at £10 an hour and hire out roller- 
blades at £8 a day. According to Road 
Runner, most people need 1-1% hours 
before they are ready to take to the 

The a c t i v i ty is refreshingly free of 
any cult clothing According to Rnafl 


Runner “baggy shorts, bright colours 
(we're a lot less coltish and much jollier 
than the skate-boarding crowd), and 
loose tops” are all you seed to wear - 
apart from the equipment 
Road Runner says It supplies gear to 
all ages — from so tiny they 

can hardly see over the count er, to the 
“gold card” set, well over retirement 
age. “Lots of middle-aged people love it 
because it is low-impact exercise and 
much more ftm than aerobics. His year 
we're also getting lobs of the City crowd 
- people who wort in merchant banks 


and love aVmig in the whiter are taking 
to roller-blading in Wio summer,” says 
RoadRunner. 

T he most common injury is a broken 
wrist and wrist-guards should be worn 
at all times, while knee and elbow 
guards axe advisable as welL Bicycle- 
style iipimria are a further precaution. 

Weekend FT sent Carmel Allen, old 
enough to see over the counter but a 
long way off bus-pass age, to have a go. 
She loved it: Td just come hack from 
New York where Td semi people having 
great ftm roller-blading at the open-air 
disco in Central Park. I was full of 
wifhnaiagm but a bit apprehensive and 
worried about losing a tooth or grating 
my fane. So I wanted to take lemons. 


Lucia van der Post on a fast-growing activity 
that provides fun, exercise and transport 


“Road Rmmer provided the inestima- 
ble Sven whom I had to meet at the 
kiosk in Kensington ffairtens - 1 knew it 
had to be him when 1 saw this pony- 
tailed blond doing mmp very fancy foot- 
work just by the kiosk. He was sweet as 
pie. 

“TTm first thing I wanted to know was 
how to sfop - once I could do that I was 
ready Cor my tarns. Two hours whizzed 
by and by the end I was able to skate 
efi; wavin g goodbye, into Kensington 
wi gfr street I bad (me dramatic fall 
when 1 put my weight .back and fell slap 
cm my bottom. Now I feel ready to 
experiment farther on my own. 

“The thfng j lifce about it is that it is 
such a happy sport. People smite when 
they miter -blade- When I used to go to 
the gym it was much more competitive. 
In the park eve r yb ody was acooraging 
me and clapping if I managed a difficult 
turn. And friends have heard *h«t 
I have taken it up I have had at least 
four roller-blading invitations." 

Most good sports shops sell roller- 
blades - a good pair trill cost anything 
from £85 to about £200. Wrist-guards 
and elbow guards cost between £15 and 
£20 «nd Vnpg guards are about £20. As 
for the boots, the wheels and bearings 
are what really matter technically - 
and if you decide you like the sport you 
upgrade them later on. 

Road Runner also has a branch at 127 

Queen's Road, Brighton, BN1 3WB 
(0273-774256). Many other sports shops 
supplying roller-blades might be able to 
provide a teacher. 



For those 
who 

serve . . . 

Lucia van der Post on 
what to wear for tennis 

T here are those who stm care about 
what they wear when playing sports 

pnffr as Trig To n trig W8ST for Chaps 

has remained reassuringly much the 
throughout the years with the only real 
change being a welcome trend to longer, baggie - 
shorts and loose* shirts (if in doubt buy a size or 
two tip). 

For women, it has been bard in recent 

gpasfms to find nunrh that looked tolerably femi- 
nine and yet fulfilled the practical briefs. 
Strictly tailored little skirts with rather butch 
shirts have become file standard wear, whether 
on rickety public courts or Centre Court at 
Wimbledon. 

Anybody wondering what happened to the 
sweet little tennis dresses of yesteryear (the sort 
that Chris Evert and Tracy Austin used to wear, 
remember?) might Ufa* to know that this year, 
soft dresses are back on the agenda. 

EHfisse, fin* instance, has created a series of 
long-bodied, low-necked dresses with skirts 
which twiii prettily as you serve and run and 
which would look equally good at the chib bar 
afterwards. In white, with a canary yellow skirt, 
in cotton and lycra, it is £110 from good sports- 
wear shops including Lillywhites. 

Another name to look out for Is Belte, better 
known for its excellent ski-wear - like many a 
winter sports orientated company it needs to fill 



Dwttiaraback-AltoMisiiyBMi* 


in the <"«««> gap in the s umme r am! this K 
does with some very beguiling tennis- wear- 

There Is a sleeveless dress made from soft 
white cotton with a pink or blue and white 
{rinphnm skirt. £59 from Harrods Olympic Way. 

Finally, if dresses are what you are looking 
for, there is Desrosiers. a British company 
which has also decided that this is the year to 
go a little bit more feminine. In particular there 
is a cap-sleeved, drop-walsted version with a 
pleated skirt edged with a fiorul band for H5. 
Also from Harrods Olympic Way. 


Little black swimsuit 


Luda van der Post on flattering swimwear designs 


W hen it comes to swimwear there is 
a beach version of the little black 
dress - the beautifully cut all-in- 
one blade swimsuit The perfectly 
plain black (or navy) swimsuit is what one 
readies for on all those occasions when one's 
emmifh is feaHng les s than fiat, one’s thighs 
seen a strange shade of white and one wishes 
one had embarked on some... any ...kind of 
diet at least three months ago. 

In other words, bikinis or supportless 1920a 
high fashion numbers are for those whose 
morale in fts figure depar tment is sky-high. 

But there is a half-way house between maxi- 
mum coverage and high -fashion - and that is 
Sam de Teran. I wrote about her two years ago 
when her first swimwear collection caused, if 
not a storm, at least a little flurry in the niche 
world of s wi m wear. Today, she is copied by 
ev ery body foam our biggest chain stores to some 
very u pma rket houses indeed. 

Her trademarks are classic sober colours 
(navy, Mack, cream), skilful cut (she believes 
that little legs or skirts on swimsuits are more 
flattering to the average thigh than all those 
vulgar high cut-aways) and dramatic cut-outs on 
the body. 

This year sees a new collection which homes 
in on what she does best - lots of support (she 
uses a nylon/lycra fabric which, while heavier 
than cotton, also offers more support), dramatic 
simple shapes and flattering lines. She has 
added more little skirts as they proved so popu- 
lar and so universally fla tt erin g , and i nc ln des 
one number which can be worn straight from 
the sea to a restaurant, so demure is its little 
skirt 

Her prices are not cheap but then for the little 
black dress of fixe beach wear world, it is possi- 
bly worth paying for better cut, better fabric 
and a bit of pizazz as weQ. 

Her prices range from £45 to £110 and the 
range can be found in Fenwick of Bond Street, 
London Wl; Way In and First Floor at Harrods; 



Updated 1820a «tyte By Sw m nth e de Tarn 


Use Sterling in Manchester, Didrins & Jones in 
London; Kendal Milne in Manchester; and Fras- 
ers of Glasgow. 

■ Lest the chaps feel left out, Samnnrtw* de 
Teran has a streamlined collection for men - 
mostly in Mack and cream. With lots of bold 
(and flattering) stripes they sell at about £60 
each and for fixe moment can only be bought 
from Bodyworks, 40 King's Road, London SW8. 



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FT Ski Expedition /Arnie Wilson 

A flight from the slopes 


Arnie Wilson and Lucy Dicker 
are trying to ski every day of 
1994 on a round-the-world expe- 
dition. This week they mooed 
from Europe to North America 
on their way to ChUe. 

I n her hooded white 
jacket and white jeans, 
Lucy looked like some- 
thing out of Colorado’s 
10 th Mountain Division, the 
war-time unit of American 
troops trained to light on sMg, 
as we set off on a misty dawn 
to ski a hillwiA* at Hiutertnx, 
Austria. 

Not bothering to change 
oor ski suits far just one mu, 
we drove to the nearest snow- 
covered fields, tried to avoid 
the gentians and hoped the 
local farmer would not spot 
US. 

Once again we ware skiing 
at an unearthly hour in order 

to leave Ourselves ennng h Hm» 

to reach a distant airport 


before an inter-continental 
flight 

Frankfurt was 350 miles 
away, and our Air New Zea- 
land flight to Los AngalPO was 
due to take off that afternoon. 
If we had waited for the lifts 
to open and gone up to the 
glacier, we might not have 
made it 

The skiing at Hintertnx. the 
best of the Austrian glacier 
areas, had been so outstanding 
that we were tempted to 
lengthen our stay: we made 
fresh tracks in powder all 
mommg. 

■ Earlier, at Saas Fee in Swit- 
zerland, we were rescued by 
the ski school director, Hein- 
rich Kalbermatten, who 
arranged a ride on a snow cat 
for us when the summer ski- 
ing area was famed to dose 
because of snow and high 
winds. Our driver, Urs Nied- 
erer, drove us like a tank com- 
mander in a white-out to a 


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point on the glacier from 
which we could ski oor obliga- 
tory mile. 

■ Now in California, our tra- 
ditional landfall between con- 
tinents, we drove all night 
across the Mojave Desert to 
Mammoth Mountain, passing 
Edwards Airforce Base, where 
most of the Space Shuttles 
land. It reminded us that Fran 
Newitt, our expedition co-or- 
dinator based in Kent in 
England, has started referring 
to us as her “time travellers”. 

Faced with an itinerary 
winch grows more complex by 
the day, she has been gamely 
trying to keep us cm course. 
But even she sometimes has to 


draw breath. Ho- last message 
to us included the memorable 
sentiment: Tm sure there’s a 
way round all these problems 
- if only I could think what it 
is.” 

At Mammoth, Ivan Bnwn 
had horses, Jeeps and snow- 
mobiles standing by to help us 
get to the snow while the gon- 
dola was closed for mainte- 
nance. 

Our daily outing am skis has 
been down Scotty’s, named 
after a skier killed on this 
trail by an avalanche in 1968. 
We pass a monument to him 
e v ery time we ski his run. We 
hope he would have wished us 
welL 




SATURDAY^! 8th JUNE 
SATURDAY the 2nd of JULY 

Standard Stool 

£3&uar£243.23 


o 

o 

NO 

o 

o 

• 

Ok 

£ 

< 

Q 

X 

5 

E- 

< 

tn 


Standard Chair 

UUnnrattd i« 

"!14Zd*03" £957.92 


2 Seat Sofa 

£23&Z^P EU73.4S 

Cushion Back Sofa 

£338fe3g^ £2135.27 J 


anmaouana mcbtdc covering m a Gmrge Smith fithrk. 
Many other cnermp „nr uvaiLibte or e^tomer/Zy 


P^pbonejoramdogue or farther mfonmttion. 


George s m it ii 

TraditimmUy h, lnsitlin . 

Yahrics and Kilims 


587-589 KINGS ROAD LONDON SWl 
TEL, 071-384 1004 FAX: 071-7,7 


i 


i 







WEEKEND FT XV 



n,c »**„ 


-.irt mcnhu. 
An*is2 


Simply made 


to measure 
. . . perfectly 

Linda Watson opts for bespoke tailoring 
when a good fit is hard to find 


C all me old-fash- 
ioned. but I like 
fashion that fits. I 
like shoulders to 
flatter, the sleeves 
to skim my wrists, the waist to 
meet mine. All 1 ask of a jacket 
Is that it allows me to stretch, 
bend, and cross my arms with- 
out fear of asphyxiation or the 
buttons flying off. 

Maybe I am asking too 
much: at a mere 5ft, I am a size 
10 across the shoulders, a 12 
across the bust, a 14 around 
the hips. As a result of this odd 
- but not rare - anatomical 
equation the past five years 
have been spent in pursuit of 
the perfect jacket. 

There comes a point in every 
woman's life when she must 
concede defeat: in the eyes of 
the fashio n industry Ms Aver- 
age is around 5ft 6in. with a 
beanpole physique. Although 
an alarming 47 per cent of 
Britain’s female population is 
size 16 or over, it is not simply 
a question of weight - but the 
distribution of it - which 
causes headaches for high 
street retailers. 

Millions of individual 
nuances in height and shape 
are the root cause of our 
clothes not fitting properly. To 
some extent this is catered for 
in specialist sub-sections, 
namely the outsize, the tall, 
and the petite. But what hap- 
pens when a few of these cate- 
gories merge? Pity the s mall 
curvy woman, the tall outsize 
shape or anyone else who does 
not fall neatly into mass mar- 
ket statistics. 

Ironically, for all the techno- 
logical advances in clothing- 
manufacturing, around 50 
years ago this problem did not 
exist. Firstly, I would have 
been in the majority (Ms Aver 
age circa 1940 was shorter and 
curvier - no wonder original 
utility jackets have always fit- 
ted me like a dream), but more 
importantly this was the era 
before mass manufacturing. 

When people were not making 
their own clothes, they bought 
made-to-measure. 

Today there seems to be a 
psychological barrier against 
made-to-measure. For many, 
the art of choosing clothes is 
frequently squeezed in hastily 
during a busy day's appoint- 
ments. 

Lycra has a lot to answer lor. 

How many women, I wonder, 
are regularly purchasing leg- 
gings or stretch velour trou- 
sers (easy to wash and just as 
easy to wear) Instead of the 
tailored ones? 

But elasticated fabrics and 
frenetic lifestyles cannot be 
solely to blame. Harry Sar- 
geant. one of the shrinking 
number of bespoke tailors and 
a member of the Federation of c 
Merchant Tailors, says: Weve l 

become incredibly lazy ab°ut s 
the way we dross. It un . t t 
enough just to be willing to l 
spend more, you must take a c 

keen interest in your figure. < 

have a Teel for fabrics and 
know what clothes can actu- 
ally do for you. A certain 
amount of imagination is i 

"Jut it is not just jackets 
which are a problem - it can ! 
apply to any 

which requires an element of 

&t To be fair, the high street 
retailer has met ns half way. 
In-store alterations are more 
widespread than ever But 

these can only go so far. Any 
nips and tucks earned out at 
the point of sale only tacUe 
basic discrepancies - shorten- 
ing or lengthening sleeve ?-“^' 

owing or extending a should- 
erlinefwhat they will not do is 
change the structure - realign 
a waist point, recut a sleeve, 
reshape a collar. 

Contrary to popu 1 "^®^ 
hesnoke tailoring is not a no- 
^farea for women. Whde any 
Star will tell you men make 
up the majority of their ■ buri 
ness many have a small per- 
rpntacre of female clients. 
Women often assume that ctk- 
tom-made ctothing mernis w* 
landish prices. In fact. it oiren 
msts much the same as up- 
market of£-the-I«S labels. A 
SSe w»l coat (with a small 

" Ber ' S T bespoke tailor 

Se RotHs tt® 6 Its mass ' 

Although tailors “ £ 

“"ttbmout £e middleman and 

JTvoS therefore get more 


f' 




Antonia Robinson and Anna 
Valentine, collectively known as 

Robinson Valentine, have developed 

a niche market tor made-to-measure 
wardrobes- 

Meticulously organised, with a 


for your money. Custom-made / 
clothes last longer: partly * 
because the quality of cloth, is F 
superior, but also the personal a 
touches - hand finishes, ham c 
pressing and hand stitching - 1 

cannot be simulated on a pro- s 
duction line. ‘ 

Even when the garment is I 
worn out, the original pattern I 
will be on hand to make an i 
identical copy. During its life- i 
span, a coat can be regularly 
re-lined and repaired. Seams 
(particularly with traditional 
bespoke-wear) are generous 
enough to be easily taken m or 
oat to accommodate fluctuat- 
ing weight 

But most impressive or an, 
knowing Ms Average does not 
exist tailors are trained to 
take individual posture into 
consideration. 

It is best to try a personal 
recommendation first and, 
when it comes to traditional 
tailoring, look for a tailor who 
is a member of the industry's 
governing body, the Federation 
of Merchant Tailors. 

The procedure is straightfor- 
ward: at blueprint stage in 
buying a jacket, for instance, a 
few questions will be asked: 
W1D you be wearing it in the 
country? Do you prefer th inn er 
or thicker doth? Do you intend 
to wear it with trousers or a 
skirt? Two prices will probably 
be quoted - one with, and one 
without the fabric (in which 
raisg the customer provides it). 

Price decided, you pay 
approximately one third of the 
. total price, the rest to be paid 
on completion. One, possibly 
two fittings follow before the 
. garment is finished. 

In total, you will have to 
» wait at least three to four 
f weeks for your made-to-mea- 
t. sure Jacket- 

s If fids seems an eternity, you 
could buy off-the-peg and wait 
a around 10 days far any alter- 
y aiions. Alternatively you could 
d spend Hie next five years 
p looking Bar perfection. No con- 
l- test l am off to the tailor’s 
■e tomorrow. 


ABOVE: Yvonne Sporre, 
former model, styfist and 
partner of Kofi Tstsuno, 

always has her jackets and 
coats made-to-measure by 
Tatsuno’s tailor, Trteo. She 
says: “I K» strange cotow 
combinations, secret 
pockets, and lots of taxhae. 

Most of my jackets are about 

six years old and I have worn 
them so much the finings 
are faffing apart and ready 
to replace." 

Prices vary depending on 
the fabric used (Tatsuno 
often uses unique antique 
brocades and sflks bought 
on his travels but an average 
jacket wffl set you back 
around £800. 

■ Teh 081-674 1703. 


computerised file on each client . ^ . 

containing thek measurement 
Robinson Valentine tea magnet for 

an ages and shapes. Says Anna OBO. Robtosc 

Valentine: “Everyone has something 

which needs to be disguised or 081-877 1571 ‘ 

\wh ‘ 


flattered - It’s our Job to do that" 
Prices start at Jackets, £425; 
trousers, £220; dresses, £800; coats, 
£750. Robinson Valentine, 4 Tonsley 
Place, London SW18 1PQ- Tefc 
081-877 1571. 


RIGHT: Rosie Martin, a 
fashion writer with Vogue, 
decided to have her shkt 
custom-made at City 
shirtmaksrs Webster 
Brothers because she could 
not get exactly what she 
wanted off-the-peg. 

Martin Levitt, the 
company's expert 
shirtmakar, says the trend 
is catching: "Mora and more, 
women are coming to us, 
particularly those with longer 

than average arms.” 

A Webster Brothers shirt, 
always made hi two -fold 
cotton poplin, costs around 
£90 and takes between four 
to seven weeks to complete. 
■ Webster Brothers, 56-57 
Comhffl, London EC3V 3W. 

Tefc 071- 626 5838. 


photography 

Hair Robert Gibbs 

at Daniel Hersheson 
Make-up Karen BeacBe 


Malibu 


/IS kanu gold and stainless sled, 
jw-down crown and case, waier-resisiant to 30 meiers. 


From leading jewellers throughout 
the United Kingdom or for your 
nearest stockist please call: 

Tel: 071 416 4160 
Fax: 071 416 4161 


"1 





XVI WEEKEND FT 


FIN ANCI AJL TIMES V«™ ™» JUNE »W»NB. » W 



A cold 
night with 
a camel 

Mark Hodson sleeps under the 
stars in north-west India 


O ur drivers insisted 
.that the opium was 
for medicinal pur- 
poses. The two men 
were squatting round 
a ca m p fire built out of dried ca iw l 
dung. Darkness was falling over the 
desert and th e cold wight c l osin g in. 
One man crumbled off part of a 
block of unrefined opium, placed it 
on his tongue and slurped it down 
with tea. “Just to keep me warm fin- 
sleeping;’* he said. 

It was getting chilly. At midday, 
the Thar desert in north-western 
India can feel like file hottest place 
on earth. But half-an-hour after the 
sun set, turning the sky ruby and 
gold, we were pulling on sweaters 
and huddling round the flames. 

A friend and I hatj hired eawials 
and drivers from a local village 
chief and we rode for three days 
while our b rains were cooked and 
our kidneys ground to a pulp by the 
constant rocking motion. 

The drivers were Rajput men 
from small villages dotted near the 
border with Pakistan. Odder bright 
turbans their skin was dark and 
their eyes bright They ware pat- 
terned slippers and handlebar 
moustaches and when they grinned 
they revealed rows of gleaming 
teeth. One kept us entertained by 
singing and chatting incessantly; 
the other, assigned to me, did not 
utter a word in three days. 

Around the camp fire the talk- 
ative driver, named Isra, hanged out 
rhythms on an empty plastic water 
bottle as his friend prepared dinner. 
There was vegetable masala, dahl 
and unleavened bread baked in 
sand beneath the fire. 

The camels rested nearby, neither 
sleeping nor lying down, just kneel- 
ing in the sand, their front legs 
tethered. We opened a bottle of 
hooch bought in one of the villages. 
It was a kind of murky rum mad** 
from sugar cane and oranges and 
was surprisingly drinkable. 

When he had eaten, Isra told os 


some tall stories about gypsy curses 
and an imprisoned princess. Then 
he wiped the plates dean in sand 
and started to make his own supper 
- both drivers refused any food 
nwtfi the drink was finished. 

They made up our beds on the 
dunes - three think blankets each - 
and tucked us in. We lay fuUy- 
dothed, watching the shooting stars 
until sleep took us off to dream of 
lesser thing* 

The cold woke us in time to see 
the sun rise, and then we heard of 
the night's drama. One of the cam- 
els had chewed through its tether 
and made a run for it Isra, who had 
to jog for an hour before catching it, 
laughed as he told the story. The 
camel, now chewing nonchalantly 
on its breakfast and with fresh rope 
around its ankles, looked 
unabashed. 

The mfliriant might have aided 
there except that it seemed to 
inspire a new spirit of rebellion in 
the other camel which decided that 

it had had onmig h Of me. 

From the start it had been tem- 
peramental, the drivers explaining 
that it was just seven years old and 
not yet fully broken in. But now it 
was snorting angrily, and when my 
driver tagged a little too hard an its 
reins it turned and spat the fetid 
green remains of breakfast over its 
owner’s white shirt. 

The politics of human-camel rela- 
tions fhr tatp that when the animal 
spits, negotiations have reached a 
temporary bait and we waited a 
few minutes for it to «d*n down. 
Then the driver tried, ever so 
gently, to coax and cajole it into 
action, ducking and blowing kisses 
as if trying to persuade a kitten to 
ooxne down from a tree. 

The beast relented, and two horns 
later we arrived at a group of home- 
steads where half-a-dozen men. were 
squatting in the sun beside a field 
of millet They looked up with 
opium, eyes, the same smiling non- 
chalant gaze that the camels gave 



us from beneath their long curling 
lashes . 

The men were swallowing opium 
with tea from white china cups and 
saucers. “It is just to stop them feel- 
ing the heat” Isra assured us. 
Another man appeared from a mud 
hut carrying his young son. The 
boy’s back was pitted with infected 
bites. We had no antibiotics, so we 
handed over a bar of Lux soap for 
which the father grasped our hands 
in silent gratitude. 

My driver’s silence, which at first 
had confounded me, now seemed 
ideal As we ambled through the 
stark landscape, the only sounds 
came from the creak of the leather 
saddle and the camel felting and 
panting. Occasionally we would 
bear goat bells but otherwise the 
desert was quiet In a country as 
loud as India, this seemed to us 
almost magical 


I was even wanning to the camel 
whose ungainly appearance - all 
teeth, neck and knees - had at first 
put me in mind of a friendly Spiel- 
berg monster. Camels can hardly be 
called intelligent, but their languid 
gait and the dainty way they pick 
their way over the sand can pass for 
elegance. There is no escaping one 
feet, though; of God’s many wonder- 
ful creations, they are surely among 
the most flatulent 

A t the next village we 
arranged to buy a 
chicken from a man who 
then ran off with our 
money, promising to deliver the 
chicken later. We rode for another 
hour, panging wild peacocks and a 
herd of gazelle and two girls, their 
feces covered with bright veils on 
their heads were huge water jugs. 
As buzzards curled overhead, Isra 


chatted with an old woman herding 
goats some 20 yards from us. We set 
up camp on virgin dunes and drank 
milky cardamon tea as we waited 
for the chicken man, it was an hour 
after dark before he arrived with 
the bird, which was taken behind a 
cactus and discreetly strangled. 

The deli very man declared it too 
late to walk home and invited him- 
self to dinner - a chicken and vege- 
table curry - before curling up to 
sleep beside the embers of the fire. 

If he had felt inclined he could 
easily have found his way back, for 
these men know every inch, of the 
desert On moonless nights such as 
this, tone camel drivers cross the 
Pakistani bonier. They smuggle out 
silver and bottles of rum, and 
return with opium and gold. 

Across India, gold is highly prized 
and forms the core of every rich 
girl’s dowry. But something strange 


happened in the history of these 
remote villages, where the man’s 
family must now supply the dowry. 
When times are hard, young men 
may roam the desert for years with 
only their camel for company, try- 
ing to save enough money to tempt 
a worthy bride. 

Isra was lucky. Married young, he 
was now 35 - though he looked 10 
years older - with five children. He 
works for half the year, taking occa- 
sional tourists on treks, and in the 
hot season, when daytime tempera- 
tures regularly top 4S e C, he stays 
home to "make more babies.” 

On the final day we arrived at a 
straw shack where a young couple 
lived with their two small children. 
In their tiny fenced-off yard were all 
their possessions: a stove, some 
rusted tins, plates and cups, one 
goat They sat us down, made tea 
and offered us cigarettes, asking for 


nothing in return. 

I gave the man a postcard of Lon- 
don. one of a pile I had taken with 
me to India, and told him it was a 
picture of my home town. He stared 
at it for a while, turning it over in 
bis black creased hands before 
handing it to his daughter. 

The girl, who was about four 
years old. with cropped hair and a 
snotty nose, looked at It blankly 
and then walked away, clutching it 
to her tom T-shirt 

As we left, I wondered what they 
would <fo with the postcard •• pin it 
to a wall, throw it away, try to sell 
it - and Imagined, in my arrogance, 
that it might play a small port in 
that girl’s life. 

Would she wonder about the 
place that lay beyond the edge of 
the desert? Would it make her want 
to go there? In such small ways are 
lives dunged. 


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-FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 


TRAVEL / PERSPECTIVES 


E dime, on the Bui- 
garian frontier to 
Istanbul, at the 
gates of Asia, is the 
fag-end of the Ori- 
ent-Express route. Every morn- 
ing a pink motortrm sets out 
from Edime, roams Thrace, 
stops everywhere and reaches 
the Bosporus in the evening. A 
ticket to Corfu ( Tchor-loo ), the 
half-way house, about no 
miles, costs 55p. 

Two rough-looking boys 
were my fellow-passengers. 
They looked over my shoulder 
as 1 sat studying the map of 
Turkey. One traced with his 
finger an east-bound journey, 
far across Anatolia, to Mus, 
near Lake Van. His native 
town. The other went farther, 
into the motmtainlands of the 
Iraqi border. 

“You’re a Kurd," I told him. 
Both laughed heartily. 1 pon- 
dered the mobility of Turks in 
their vast land where, to one 
side, the Danube pours her 
waters and, from the other, the 
Tigris and Euphrates flow. The 
Grand Signior once summoned 
teams of virgins from the dis- 
tant provinces, in order to 
have samples of every region 
in his harem. By the time the 
Lake Van girls reached Con- 
stantinople, a third of t.hwwi 
were mothers. 

At least they were spared an 
ordeal by motortren. Racked 
with cramp from its narrow, 
straight-backed bench, 1 
needed help to disembark at 
the wayside halt erf Buyufckar- 
istL (A sketchy knowledge of a 
few nouns interpreted It as 
either the resting-place in the 
birch forest or the town of 


A hot and dusty road to 
the last place on earth 


wooden saucepans). 

It was an oasis of rank vege- 
tation in a harsh landscape. 
Roses fought with cabbages, all 
tossed in a red and green salad. 
Hollyhocks and begonias stood 
like signals along the line. 
Canary creeper festooned the 
fountain and the crossing-keep- 
er’s white two-roomed house. 

He lay sprawled under fads 
fig-tree, a burly old fellow in 
braces and uniform trousers. 
Custodian of single-track 
link between east and west 

(down the fin k Istanbul. Ank- 
ara, Baghdad; up the line; 
Sofia, Vienna. Pans), he led a 
contented life, pottering among 
flowers. 

He exemplified the wisdom 
of Candide’s philosophy: °H 
faux cu&oer notre jardm." The 
pink motortren had not been 
worth getting up for, but when 
a signal clicked and the dark- 
green Marmara Express loped 
through like an exhausted ani- 
mal, he put on his pill-box cap 
and sainted the driver. 

1 took to the hills. When the 
rains arrive, Thrace will be a 
delightful country with oak, 

mmtwtflfn anh and lab u rn um in 

leaf, wild cherry in flower and 
clear streams racing down 
sandy rhanwria to the Spa of 
Marmara. 

Until then it is dusty, lifeless 


and swept by a gritty north 
wind. I kept stopping to empty 
sand out of my shoes. A young 
man and a girl in a donkey- 
cart overtook me and. as every- 
one does in Turkey, urged me 
to rffanh up behind. Be scowled 
when I declined, but the girl 
understood and her happy 
young smile was as good as a 
glass of spring water to me. 

Short cuts across the sheep 


Off-duty dogs chew scattered 
bones, probably those of some 
previous passer-by. You offer 
thp dogs a share of your lunch 
of black bread Kazan dUx 
(“bottom of the barrel"), the 
treacle podding which the 
Edime pastry-cook idled into 
a ball and stuffed unwrapped 
in your pocket. The dogs 
respond with growls. 

Near Corfu a tractor-driver 


Leslie Gardner wanders through 
Thrace to Tekirdag, in Turkey , a 
small port with a literary history 


pastures were a mistake. My 
guide-book mentioned “playful 
Thracian shepherd dogs,” but 
thnsft i met had never 
to {day. The first whiff of a 
stranger brought flwm racing 

in a pack, snarfin g and sp oiling 
for action. 

Pretending to pick up a stone 
sometimes rfi ramus a cur, but 
not the curs of Thrace. The 
shepherd, thank God, is usu- 
ally not far away. You offer a 
cigarette (which be examines 
as though he has never seen 
one before) and sit with him in 
a cavity of the dried-up torrent 
hank , out of the breeze. 


refused to take No for an 
answer, so I rode into town an 
his trailer-load of sunflower 
seeds, “Oberj?” He pointed 
down a side-street off the 
(Vj fnlti. the shining racet rack of 
the Athens-Istanhul highway. 
"Yak turistik ," be said - not a 
tourist hotel, therefore not a 
rip-off. Picturesquely old-fash- 
ioned (they even provide bed- 
room slippers for your dawn 
raid on ttw» mosque), the Obeij 
Batman was half as costly and 
twice as ^p gani as an ything [ 
had known in Turkey. 

It served no food or drink (it 
was impossible to buy wine 


anywhere in Corfu, although 
the place bristled with drunks), 
but I discovered a sort erf gar- 
den restaurant called Atsubay 
OrduveL The lamb rissoles and 
nightingales' nests, the kebabs 
awri dobnasi were nothing to 
write home about but the com- 
missionaire snapped off a 
salute as I arrived and the cof- 
fee-boys, balancing tiny cops 
on trays slung from sflver 
chains round their pw' k 1 ?. trot- 
ted about «anUing 

On a low wall across the 
street sat a dozen old women, 
veiled and silent, like a row of 
black crows waiting to pounce 
on the leavings. I asked nnw if I 
could photograph her. She flwfl 
whimpering. I put the same 
question to her neighbour, who 
immediately uncovered and 
gave the camera a brilliant 
smile. 

The 15 miles from Corfu to 
Tekirdag (Tekky-da), downhill 
all the way, take about four 
hours on foot When you come 
out on the low, lonely Mar- 
mara cliffs you can strip, beat 
the sand out of your clothes, 
wash and dry your socks and 
swim in a mild sea. 

Tekirdag is a small port 
awfing the dunes through 
which sandy trails of streets 
are cut Hustled by the gritty 
wind, clapboard houses rattle 


and nod over their buttresses 
of sand. There was no sign of a 
population until I peered into 
the mosque, where a spotty 

youth in a tasselled cap was 

reading from the Koran. 

A bell tolled. Out of the 
municipal offices the clerks 
running, down the broad 
steps two and three at a time. 
Surely one among them spoke 
English or at least French? 
Surely someone was aware of 
the literary importance of Tek- 
irdag, the spot that Voltaire 
nominated (possibly because it 
appeared to him the last place 
on God's earth) as that to 
which Candida and Pangloss 
retired to cultivate their gar- 
den? The clerks could not 
make out what I was talking 
about. A garden? At Tekirdag, 
where everything lay under 6 
inches of sand? Before dark 1 
had surveyed the town, 
upwind, and down. There was 
no monument to that profound 
and original French philoso- 
pher, no bubxzri Candide, no 
sokaffi Pangloss. Army trucks 
slithered through, each 
vehicle’s radiator proclaiming 
“NATO-FUNDED." 

A coach from Greece stopped 
at the wa te rfront fuel point, all 
its passengers asleep and the 
radio playing Mozart One by 
one the arc-lamps of the coast- 
ing vessels at the jetty went 
out Incredibly, the coasters 
seemed to have been discharg- 
ing cargoes of sand and graveL 

I button-holed a sailor in 
French naval uniform. 
"iTsieur, you know of Vol- 
taire?" He looked up and down 
the harbour and said: “How 
many funnels hag «hp got?" 


In search 
of the 
Japanese 


• • 


spirit 


Christopher McCooey experiences 
early morning on Mount Fuji 


F our o’clock on a July morn- 
ing on the rim of a dormant 
volcano. It was dark and 
chilly, the wind swirling out 
of the 700-ft crater behind me. I was 
not alone, just one of hundreds gath- 
ering on the summit of Mt Fuji, at 
12^88ft the highest point in Japan. 

Some people had slept for a few 
hours in mountain huts on the trail or 
at the summit. Others, like myself, 
had climbed through the night and 
were resting - conversing in low 
voices, sharing chocolate and anec- 
dote in time-honoured mountain tra- 
dition - and waiting for the sunrise. 

Climbing Mt Fuji is more than just 
getting to the top of a mountain. For 
the Japanese it is a religious experi- 
ence, confirmation of their true Japa- 
nese spirit, and to be there at dawn, 
to pay homage to the rising sun. is 
the ultimate high. 

The eastern sky began to lighten 
perceptibly as more and more parties 
of climbers, some urged on with whis- 
tles and megaphones, snaked their 
way to the top. Their progress could 
be monitored by watching their 
torches swinging from side to side, 
following the trails below. 

At this altitude it is necessary to 
rest every few steps as the final few 
hundred feet are the steepest and the 
loose volcanic ash and clinker make it 
very tiring: three trudges up, half a 
slide down, wheeze, rest, gulp for oxy- 
gen, gaze at the stars. Altitude sick- 
ness. a red-hot steel needle inserted 
behind the eyes and twisted slowly 
for effect (or so it feels), may be a 
problem. If you are prone to this, take 
altitude pills. 

Fqji is an almost perfect vo l c ani c 
cone about 60 miles south-west of 
Tokyo. On days when strong winds 
have swept away the pall of pollution 
tha t inevitably hangs over Tokyo, a 
city of nearly 12m, the graceful moon- 
tain, snow-capped in winter, can be 
seen from downtown. 

The volcano must be considered 
dormant rather than extinct Since 
800 AD, seven eruptions have been 
documented; the most recent took 
place between December 16 1707 and 
January 22 1708. 

It was in that eruption that the 
cone lost its perfect symmetry. There 
is a hump on its south-east slope 
called Hoei-zan ( san or aw means 
mountain in Japanese, which is why 
Fqji is often called Fuji-san, or Fuji- 
yama. yama also meaning mountain). 
Ash spewed out from Hoei-zan and 
covered the capital, called Edo in 
those days, to a depth of 6in. 

When 1 was there, Hoei-zan. at 
8,864ft, was as black as spilt mk 
against the patchy low cloud that 
hung wispily in the valleys below. I 
could make out areas of conifenras 
trees planted in angular blocks on its 
slopes, and then a huge area, lighter 
in colour, along Fuji’s southern 

flanks. . . 

This is a kind of tableland that was 
denuded of its forest cover when Hoei- 
zan erupted. Today it is an area of 
open moorland used by the Self-De- 
fence Force as a training : ground f for 
Us troops, tanks and jets. Beyondthat 
were swathes of lights tomfowns 

and cities, part of the most dynamic 
industrial region on earth, the Pacific 


W ith proper equipment it 
is possible to climb the 
mountain during any 
month, but in the win- 
ter it should be regarded as a serious 
alpine expedition. Several thousand 
climb ers are on the summit at dawn 

on January l, to greet the New Year. 

However, the safest time to climb is 
during July and August when all of 
the mountain huts are open. Even so, 
care is needed because of rode slides. 

In August 1880. 12 people - mostly 
schoolchildren and elderly people - 
were killed by a rock slide as they 
descended Fuji by the sunabashiri 
(sandsfide) on the north ride. This is a 
large patch of volcanic sand, and It is 
possible to get from the summit down 
to the car-park in an hour if you run 
and slide. 

The sky find changed from black to 
deep purple and was sow lightening 
to blue. The moon was a pale yellow 
in a panoply of silver blue stars and 
orange planets and, tracking through 
them, a satellite. In the growing light 
I became more aware of my fanmedi- 
g ate surroundings. The garbage that 
desecrates the mountain is unbelief 
able. 

Down below there were huge screes 
of rusting cans beside each hut; on 
the trails were candy wrappers and 
soda cans discarded by climbers; 
around me at file summit were empty 
boxes that had contained rice meals, 
smashed beer bottles, orange peel, cig- 
arette ends and wooden chopsticks 
used once and dropped. It seems 
incredible that the Japanese venerate 
this mountain so deeply yet treat it so 
shabbily. 


• s j - ' : , «■ . •. 

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seaboard from Tokyo to Osaka. 

It had taken me four hours to reach 
the crater rim from where I had left 
my car at the road-head. The trails 
are steep, but easy to follow, ff you 
are reasonably fit then a steady plod 
will get you to the top. 

I reached into my rucksack for a 
sweater as the chill wind at the top 
quickly nullified the body warmth 
caused by my exertions. I found a 
sheltered hollow. 

My wife had prepared onegiri for 
me, and I began to munch on the rice 
ball wrapped in dried seaweed. In the 
centre was a pickled plum, tangy and 
sour, and I sucked on the stone, enjoy- 
ing its refreshing taste. 

On peak summer weekends as 
many as 40,000 people climb Fuji. Like 
any mountain area, accidents occur, 
and Fuji has claimed its share of 
lives. Some Japanese have actually 
chosen this sacred mountain as the 
place where they want to fie. On the 
north side is an area of virgin forest 
called Adkt-gahara, the Sea of Tress. 
One of the trails that goes from the 
te Hr** of thg mountain to the gnrnmit 
passes through this area. 

Hikers are advised to keep to the 
trail as it is easy to get lost, and 
minerals in the rocks cause com- 
passes to mfllftmntfnn. Ja panese bent 
on suicide drown in the Sea of Trees; 
they wander off the trail and get lost, 
spending their last earthly hours on 
the slopes erf their beloved Flip. Each 
year the police and the Self-Defence 
Force combine to search the area; on 
average 20 bodies are found. 



$ 

*•*>*'«& 

-mm 

■ -JX 3*.ul 



CSmUng Mount ftp 1% for the Japanese, a raBglous experience 


At the summit there is a post office 
as well as numerous vending 
machines selling sake and beer anH 
soda. Snack stalls offer hot noodles at 
prices reflecting the altitude. The toi- 
let facilities are primitive. There are 
souvenir shops selling charms and 
t rinke ts and, if you have a hiking 
stick, you can get it branded to prove 
that you made the conquest 

It is estimated that just under half 
the 400,000 who climb the mountain 
every year are female - winch is only 
right when it is remembered that the 
guardian divinity of the mountain Is a 
female one: the goddess who makes 
the flowers bloom. 

I was lucky, far conditions were per- 


fect the day I climbed. Thousands of 
feet below, smoke-grey cloud covered 
the forests and rice fields, factories 
and cities. High above, the thin shav- 
ings of cirms had already caught the 
sun's rays and were bright gold, while 
out In front a blood-red dawn seeped 
perceptibly along the eastern horizon. 

And then the huge orb of the sun 
rose majestically out of the mighty 
Pacific to a chorus of “Ban- 
zai!" . . . “Cheers!" . . . “Long live the 
Emperor!" . . . “Long live Japan!" 

■ When to go: the mountain dxmbmg 
season is from July 1 to August 3L The 
mountain huts charge about £40 with 
evening meal and breakfast, less with- 
out The huts are spartan and very 


crowded at weekends. No camping is 
allowed on Mt Fuji 

All trails are about the same in diffi- 
culty. steep and with loose rode and 
ash. Try and amid weekends, which 
are busy. Fuji does not require special 
mountaineering skills m the summer 
season, just reasonable fitness arid per- 
severance. 

A stout pair of hiking boots is essen- 
tial with gaiters recommended to pro- 
tect your ankles from the sharp dinker 
and heip keep out the cinders that 
work their way into your soda. Warm 
and wind-proof clothes should be worn 
or carried as it may be hot at the 
bottom and freezing at the top. Take 
your own food, snacks and drinks. 


WEEKEND FT XVII 


The Nature of Things 




mt:-,,- 


m 


A ‘truncated fcosatechron’: ch emi ate marvel at fuflereno’s shape 

Scientists 
on the ball 

W hat does chemis- for Nuclear Physics in Hei 
try have in com- berg and Don Huffman of 
mon with the University of Arizona in r 
World Cup? son discovered a simple wa 


W hat does chemis- 
try have in com- 
mon with the 
World Cup? 
Answer: great excitement 
about balls. 

The most significant mole- 
cule discovered in the past 10 
years is C,.. the football-shaped 
form of carbon known offi- 
cially as bnckminsteifullerene 
- fnllarene or buckyball for 
short An astonishing range of 
applications has been proposed 
for full arena and related com- 
pounds: from batteries to Aids 
treatment; better photocopiers 
to super-slippery lubricants; 
rocket fuel to ultra-strong 
fibres. 

But chemis ts are not just 
excited about the potential 
uses of follerene. They marvel 
at its spherical shape - more 
symmetrical than any mole- 
cule previously known to sci- 
ence. And they are delighted 
that pore carbon - long known 
to exist In two forms, graphite 
and diamon d - nan take a 
third form so different to both 
of the others. 

In diamond, the hardest nat- 
ural material, each atom is 
linked to three others in a 
three-dimensional tetrahedral 
arrangement In graphite, one 
of fhp softest, thp a toms lie in 
two-dimensional hexagonal 
sheets. Fullerene is a “trun- 
cated icosahedron", one of the 
18 Archimedean solids known 
since classical times. Its 60 car- 
bon atoms are arranged in a 
regular cage whose sides con- 
sist of 20 hexagons and 12 pen- 
tagons - just like a soccer ball 
(which usually has the hexa- 
gons coloured black and the 
pentagons white). 

But the scientists who dis- 
covered Cn in 1985, Harry 
Kroto of the University of Sus- 
sex in England and Richard 
Smalley of Rice University in 
Texas, were not soccer fans. 
Instead they named the mole- 
cole after the late Buckminster 
Fuller, the American engineer 
who designed geodesic domes 
with a similar shape. 

The discovery illustrates the 
spin-offs that can come from 
“blue skies" research pursued 
out of intellectual curiosity. 
The driving force behind it was 
Kroto's desire to understand 
the nature and structure of 
matter in interstellar space. 

Kroto believed, on the basis 
of spectroscopic evidence, that 
lon g chains and other dusters 
of carbon atoms existed 
between the stars. To investi- 
gate further, he convinced 
Smalley to join a cooperative 
project, using special equip- 
ment designed by the latter to 
generate atomic clusters from 
a supersonic jet of gas in a 
laser beam. They found that 
molecules with 60 carbon 
atoms ware particularly stable 
- and proposed the correct ful- 
lerene structure - but could 
only produce them to micro- 
scopic quantities. 

As it turns out, follerene is 
widespread in nature. Spectro- 
scopic studies show that Kro- 
to's “celestial spheres" are 
indeed almost certainly pres- 
ent in interstellar space. On 
earth, tiny traces of C. have 
been detected in 65m-year-old 
rock dating from the end of the 
Cretaceous era; they may have 
formed in the cataclysmic colli- 
sion with a comet that extermi- 
nated the dinosaurs. 

The breakthrough towards 
practical applications came in 
1990 when Wolfgang Krdtsch- 
mer of the Max Plank Institute 


for Nuclear Physics in Heidel- 
berg and Don Huffman of the 
University of Arizona in Tuc- 
son discovered a simple way of 
making relatively large 
amounts of Cm. They vaporised 
graphite electrodes in a 
low-pressure helium atmo- 
sphere, producing a sooty 
black mist from which pure 
fullerene could be extracted as 
a reddish solution and then 
crystallised as a slippery yel- 
low solid. 

Within months of the process 
being published, many scien- 
tific groups were making their 
own fullerene and today the 
material is available commer- 
cially. For Maniple, Dynamic 
Enterprises, a UK supplier, 
sells more than 99.5 per cent 
pure Cm at £100 a gram - and 
an educational Buckybox kit 
for fichnnls to make their own 
fuQerene costs £95. 

As wefl as Cm. the Krfltsch- 
mer-Huffinan process produces 
smaller quantities of other pre- 
viously unknown fullerene-like 
mnieriiies Most common is an 
elongated form, G,„ which 
looks like a rugby ball. 

More exotic variants include 
buckytubes - fullerene 
stretched out indefinitely in 
one direction - and bucky- 


CUve Cookson on 
a form of carbon 
shaped just like 
a football 


onions - concentric shells of 
successively larger fullerenes. 
Researchers at NEC, the Japa- 
nese electronics group, have 
recently made buckytubes only 
a few millionths of a milli- 
metre thick but more than a 
thousandth of a millimetre 
long, and filled them with 
metal atoms. They are the fin- 
est wires ever made and are 
potentially Ear stronger than 
the conventional carbon fibres 
used in industry. 

At the same time, scientists 
are making chemical deriva- 
tives of Cm by attaching other 
elements to its carbon atoms. 
One example is a fullerene 
with two water-soluble molecu- 
lar groups attached to its sur- 
face. This turns out in 
test-tube experiments to block 
an essential enzyme in HIV, 
the Aids virus, and is a long- 
shot candidate for development 
into an Aids drug. 

Another avenue of research 
is to make fullerenes in which 
the cage itself is made of ele- 
ments other than carbon. Japa- 
nese researchers are investiga- 
ting N M> a buckyball made 
entirely of nitrogen, which 
would release huge amounts of 
energy as it reverted to nitro- 
gen gas. It could be a rocket 
fUel or explosive. 

But the first application of 
fullerenes may well be in pho- 
tocopiers. Xerox recently 
received US patents for a pro- 
cess to improve the resolution 
of photocopies, taking advan- 
tage of the fact that carbon 
buckyballs are 1,000 times 
smaller than the particles in 
conventional toner. The com- 
pany is also experimenting 
with a range of coloured fuller- 
enes for colour reproduction. 

From the English point of 
view, follerene fever is sadly 
like the World Cup. We 
invented the game and now all 
the action is taking place else- 
where. 



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PROPERTY 



An austere wMe fortress on a bare CMtams fafakto: the planning autaorfty gave penn lsskni Srtth extrema ratuctanc* 1 * and tbe locals caBad It tha ‘‘aeroplane house* 

A listed ‘planning blot’ 


Gerald Cadogan views 
a house, jit for 
fictional detective 
Hercule Poirot , which 
could be an enticing 
prospect for a fan of 
1930s ' architecture 

T he new boose was a blot 
on the landscape in 1931, 
an austere white fortress 
on a bare Chil terns hill- 
side above Amersham, 
B uckinghamshir e. Inspired by Le Cor- 
busier, the Swiss-born architect, it 
contradicted the home sweet home 
notions of Metroland (the suburban 
development of Middlesex and Bocks 
along the Metropolitan Railway). 

The planning authority gave par- 
mission “with extreme reluctance" 
and the locals called it tbe “aeroplane 
house” because its long slabs of wall, 
interrupted by steel-framed windows, 
looked like the wings and struts of a 
biplane. Now, it is a listed building; 
Indeed, it was a setting for filming 
Agatha Christie's Hercule Poirot tele- 
vision series. 

The house was called High and 
Over, after a windy hill on the South 
Downs in Sussex. A New Zealander. 
Amyas Connell, designed it for Bern- 
ard Ashmole, a Mend who then was 
professor of classical archaeology at 
University College, London. Christo- 
pher Hussey, writing in Country Life, 
called the building "the conception of 
young men". He went on to acclaim it 
as “the home of a 30th century family 
that loves air and sunlight and open 
country". 

Connell built it with, a concrete 
frame; brick filling rendered with 
cement and white-washed; and con- 
crete blocks inside. Its utter lack of 
compromise and clean lines must 
have reminded Ashmole of ancient 
Greece, one of his specialities. 

The two met in Rome when Ash- 
mole was director of the British 
School and associating with a lively 
group of artists and archaeologists 
such, as Rex Whistler and Barbara 
Hep worth (as he tells in his autobi- 
ography* which appears on June 22, 
the centenary of his birth). The son of 
an estate agent in Ilford, Essex, he 
was related to the Elias Ashmole 
whose collection is the basis of the 
Ashmolean Museum in Oxford. 

That background was ideal for a 
classical art historian, as he became 
after surviving tbe first world war 
with wounds and the Military Cross. 
In the second war, he volunteered for 
the RAF and found himself every- 
where from Shetland to Sumatra. 

As Keeper of the British Museum's 
Greek and Roman department, his 
greatest feat during the war was to 
pack up aQ its classical treasures - 


inffintting the Parthenon sculptures - 
and hide them in an unused tunnel of 
London’s Piccadilly underground line. 
Years later, he was showing thpm to 
John Paul Getty. And how much 
would they cost? asked the US billion- 
aire. “Even more than you, Mr Getty, 
can pay." came tbe answer. 

Water fascinated him. Returning to 
Oxford as its professor of classical 
archaeology, he lived first in the Old 
Mill at Ifiley, where he built a water 
system in the garden with a fountain 
basin cast by pouring concrete into an 
upturned umbrella. At High and Over, 
he put up a water tower to feed the 
swimming pool which he and the gar- 
dener dug out from an old chalk pit 
As it did not have planning permis- 
sion, it was called a pond. 

The three storey-high house was 
built as a Y, to fit the contours of the 
bare hill and “take utmost advantage 


of the scanty English sunshine" while 
having a superb view of the Mis- 
boume valley. It stood dominant on a 
podium, and the design was a trium- 
phant combination of intelligence 
technology. 

The electric lighting was behind 
panels of frosted glass set in the ceil- 
ing in brass frames - as you might 
expect cm an ocean finer. Upstairs, 
washbasins were tucked Into alcoves 
- a gain, like a boat - and the number 
of cupboards was quite unusual. The 
front door was chromium-plated steel, 
as was the stair railing. 

On the ground floor, one of the 
three prongs of the Y was the profes- 
sor's study - art history needs space 
to spread. Another was the drawing 
room, and the third the dining room 
and kitchen. The prongs met in a 
hexagon, floored in black marble with 
a fountain, at the heart of the bouse 


and overlooked by a round gallery an 
the first flow landing. 

Most running was the second (top) 
floor, a flat roof containing the chil- 
dren's play space (with a sand box 
plus concrete shelters with hooks for 
haTTvmnrk and swing) and penthouse 
nurseries. 

Hie Ashmoles lived in High and 
Over until after the war, and the gar- 
den grew. Today, the house is hidden 
by splendid trees (protected by preser- 
vation orders) and it is hard to imag- 
ine what a threat it was to Amersham 
60 years ago. Beyond the pool, a wood 
adds to the privacy. But most of its 12 
acres was lost to development around 
25 years ago and the house was split 
into two - not vertically but with 
different wings and floors projecting 
into each other, like a layer cake. 

This meant many alterations, which 
obscure the Banhaus cleanliness of 


the original design. Partition walls 
have been put up and pane! lights and 
shelves covered over or removed. 
Even the fo untain is under a fitted 
carpet 

Today, one part - which includes 
the hexagonal fountain room and the 
library - is for sale, with a guide price 
of £229,500. through Amersham agent 
Peter Robson (W94-724 999). It could 
be an onHring prospect for a fan of 
1930s' architecture. Tear down the 
new partitions and put back the 
detailing - the fountain and shelves 
and light panels. The result would be 
an austere and sophisticated urban 
cottage, true to the vision of Council 
and Ashmole. And who knows: per- 
haps, one day, the two halves could 
become a whole once again. 

* Bernard Ashmole, An Autobiogra- 
phy, edited by Donna Kurtz, Oxbou. 
about £18. 


Cadogans's Place 

A French 

connection 


H ouse-hunting in 
France is fun, and 
a voyage of self-dis- 
covery. But do not 
disdain advice if you want to 
succeed. It is worth letting 
yourself be namued. 

“Work through a UK consul- 
tant," advises Sarah Francis at 
Sifex. She says they are of 
great use for those who want 
to be helped through the pro- 
cess, but adds: “Decide which 
one you want to go with, if you 
use several, you will probably 
nwi up with the same agents in 
France showing you the same 
houses." 

There is no extra charge, as 
such a consultant will split the 
vendor’s fee with the French 
agent or British agent working 
in France. 

Here are some other points 
to remember: 

■ Besides tbe consultants’ and 
agents’ lists, useful magazines 
are Belles Demeures, Demeures 
et ChtUeaux and Le Figaro’s 
Prapriitis de Prance. Adver- 
tisements are often in English 
as well as French. There is a 
huge range of properties, many 
of which have been on the 
mar ket a long time with the 
price falling gradually. Prices 
tend to be higher in favourite 
regions such as Brittany, the 
Dordogne. Normandy and 
Provence. 

■ When you set out to inspect 
properties, allow plenty of 
time; you will not then have to 
rush for a telephone in the 
heart of the country to tell the 
agent you are running late. 
Remember also that the agent 
has lunch from 12-2 and be cer- 
tain to arrive at the agreed 
hour. 

■ "Never offer the asking 
price,” says Crabb & Temple- 
ton Associates <0225410 531). a 
property consultant and finan- 
cial broker. And make sure at 
the start that you have enough 
land if you want a tennis court 
or swimming pool. Also, 
inquire what might happen 
next door. A visit to the mayor 
will be helpftU. 

■ Before you settle, get esti- 
mates for work that needs 
doing. An architect or surveyor 


might not be news»ry bat Ba 
local huikitT R Small Brass of 
British builders art new text, 
ing in Frmv on oW houatt - 

■ if you nwil a mortgage, soya 
Crabb & Templeton, a fflsMer 
getting anr in francs. It wUl be 
of the old ftwhimwd type, with 
repayment of capital and inter- 
est, jnd probably »Ul ran Jbr 
15 years. At the moment, teort- 
tpxgv rates In France (About 
10.15 per cent > are higher fitan 
the UK. But there Is a sportfe* - 
chance the coming election 
will spark a devaluation. whWb 
would be the moment to 
exchange sterling. 

■ The extras - mainly tom 
and fees of the mtttdrt - are 
likely to he U lo 13 per c enter 
the price. 

■ "if you have any wonfei 
about the transfer, ask a ao&d- 
tor whit knows France Contend 
half an hour looking over flu 
documents." advises Tin, 
Urquhart. of Bristol ooUcttat 
Osborne ClarkO (0272-230 
also London. Paris and Lyos. 
But. in genera!, he thinks it te 
not worth instructing a British 
solicitor for a property Mow 
£100.000. 

■ "if two families are buying 
together, forming a company la 
Society Civile Immnbilfaelfc t 
sound idea." says Fronds. Oth- 
erwise, if somebody die* to * 
car crash the Code Nnpofcon. 
will apply and the property 
will be split Up. Crabb & Tan- 
pteton recommends ranking « 
will in Franco as mil as the 
UK. 

■ There is also the matter of 
health insurance. CAT says 
that form Kill, issued In the 
UK. is fine for holidays, fol- 
lowed by KlttJ which Is good 
for two years. But. after that, 
you might not be covered. 

If you are under 65. the best 
solution is to start paying into 
the French social security sys- 
tem. which will look after 75 
per cent of your medical bills, 
with the rest covered by pri- 
vate insurance. But if you are 
over 65, it Is too late to join. 
And private insurance can be 
expensive. 

Gerald Cadogan 


COUNTRY PROPERTY 



) London 30 mOcs A3 i mile Ooildfcwd 4'Aouks «;-• 

A mast attractive and conveniently situted roMeetkl estate with ■§ 
bnpresstre manor howse built in tbe Tudor style in lov*ty lakeside Jr.- 
setting somraoded by weD-kept formal gardens ■ 

5 KCTpta mono, S batman tabs, ana (I«,iabUigaBd gKagfciB for 6ao, IriKfecn Bp* 

BwfefM, Victorian gnesfeoine* lad ardanL Defected lodge. Fa* Cottage and Home Finn, 

todldoaalmdmidcm bn trotoap, sable (Mat sod sneaky m>odbn<L EgS 



ALDUUIIY bl an outstanding tocaflon. A OXFORD LARGE, DESHABLE Park Town 
hantaoma Victorian House and Cottage. house nr Dcasjon School. Tel/Fax; 0605 
«sMe yanl. In afl 10 'A acres. fiALUMERS 614346 or see CortylifeJuie 21 
0923308168 



Bl'TLF.R 0 SHERBORN 


NOTTS - SCflEVETGN Nr N u Mrw w n. A 
gratis U period famhousa to rural vBage. 

and lend. In oU about 34 acres. OHIO 

STMC.OOO- Contact SMITH WOO LET 

diartered naveyora. CoSnpam, News**, 

rWM.NG23 7U3.Tefc 0636 882 486 



Knight Frank 
ZZ & Rut ley 

In ii-;k national 



Isle of Mull 


Dcrtsig about 6 mCte*. Tobermory about 16 miles. 

One of the most beantiftil and encha n tin g 
island estates situated on the w es t e rn seaboard 
of Scotland in an area of outstanding 
beauty and seclusion 

Tbe toman tic and fmoa TrwhuMi !*!«■ exte nd in g to about 
330 acres renow ne d forthdrUrdUbswlIn pa r ticula r 
their Baxuade Geese aodl Storm Petrels. 

As attractive hoosa with 2 reception rooms, 5 bedrooms, balbroom- 
7 picturesque boBday c o tta g e *., 

About 4 aflat of wwtlinc 

About 1900 acres 

(As a whole or ntaoda aapaiatofr) tCBSniiMt 


Edinburgh 031-225 8171 
2 North Charlotte Street. Kdinhurgh HH2 !HK 


John Clegg &; C - 



Caithness 

TBE DALE FARM ESTATE 


4126 Aeralien Hearts 



An attractive Residential, Agricultural and Sporting Estate 

■ Staled fa Ifcrbe-dfldeooarcf Hattb SaxM-4eU« Ae WrerTbrno* 

■ SlegM 6 bedroom bonboeM ■ 5 eora^i ■ 
n O ae a N Mu aablejadgaaiock cBM priaMn 
■ Lwgc mowbedi «fcb extattaf ptanbe eaesat tor pea eanedoo ■ 
UnriwltilHm imairntomlnn irntf f i t iimun 1 n i tuml l nfiil i lf iie l li ^ M 
■ Pat sale prt nttij as a wfwfc or in 9 Ion 
Contact: ioa Lambert 



2 Rutland Square, Edinburgh, EH I 2AS 


Tel: 031 220 8800 


ANCIENT RYE £ 99 . 300 - 1 125.000 « 
watatad dnOocmert h Iha CQnsanadon 
Araa fcnrtng 8w unv or rian 0( a Grade ■ 
Listed tormar warehoun la pmfcla tag 3 
bearoom ^ta imaifa. one m ala a gBB and 2 
abepisOa Qamgaa anwaa FUBpeend 
SUba 0797427338 

SOUTH CKESHRE Wan UliTt pert 
mgnKM saOSng. 3 acraa. posUa smot 
homes *,3tal SsUnp pods *i % 
tan river frontage, hfidry acoon 4 baa at 
Beautiful unkpia name, dnmdant wWMa. 
Om afrport irstard & MwfryaMwhaMr. 
Bbrntagham ete. Emigration sale. Video 
aoBstfeL eaBLOQOono. Yet 0270 81 1678. 



THE PROFESSIONAL 
FINDING SERVICE. 

Let ob help joo bay your seat 


Ttfapbone L. __ 

and a bndxm 
UMd Office 

■W. 0666860623 Eras 0668 860898 
London office 


ENGLISH COURTYARD 
IN THE GARDEN OF ENGLAND 

A walled garden and a pond full of Golden Caro and 
Japanese Eoi make Atwater Court, Lenham in Kent 
one of our prettiest developments. 

A two bedroom cottage built in 1986 is available for 
£119,500 and a new three bedroom cottage for £195,000. 

To find out more about these and other developments 
throughout England, please telephone us for a brooch ure. 

The English Courtyard Association 
8 Holland Street, London W8 4LT 
FREEFONE 0800 220858 


On the InsnetioiB ofMDL Devdopotna Ltd. 

BRJXHAM MARINA VILLAGE 

AapecUcahr ttar bo & edge 

OE YELQPMLl YX SHE 
FOR SALE 

Mffc conseeifor 

35 Houses, 5 Flats <£ tf Shops 
WAYCOTTS. 5 FLEET STREET, TORQUAY 
TEL: 0803/2 1253 1 


North Yorkshire 


Grnssir.qton Wh.irtednle 



Aa opportunity Co eojoy one of the 
finest rimaSons overlooking the River 
Whnfeaad at the same time achieve a 
healthy tocomc fmm a beautifully 
appointed -1 leOfng bedroom 
guesthouse. 


Spodois owner's accommodation 



jackson-Stops 
& Skill 


West Sussex 

Q i fcheim Hscboufr Botham Hoc. 

rMrVfg r^ miV, 

London 72 ofics. 
tethOcct socess sod a wide 

foreshore femtan to lie main 
•b i n s 1 1 ofChktetfer Hraboa^ 
ssin^e s l ory co t Uf sctin 

s p piusimwe h 3L7 sews. 


2bedraants,2hstiuoaBa(botlien 
soud. 2 Ranges. Gardens and grounds. 
For sale twSoUect to 
Contract Seated Bid Tkodo. 
OoringiUte; Friday Z9ih July 1994. 


VOW IEL 

THephnoe: (0243)78® I&. 


Bsmmi 


EASTBOURNFS 


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BERKELEY COURT 



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from these sumptuous 
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penthouses overlooking 
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£95,000 - £225,000 
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Thurs-Mon 1 1 am-5pm 


Tel: 0323 649771 
Balfour Ud. Tel 0892 544787 


Ntbo m tj ft tisas i 


A confidential ami dwerwt 


home iiwlmx rrrcirv by wdrprruJmt 
txpi'rirnccii property experts for 
private or corporate ctimti i. We cover 
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Tel: (0323) 50930 7 
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MOVING TO DEVON.'CORNWAU,T 
Tho Cojnty Hcxnosoocch C*T» ssfWlsnOsd 
and pro( toon (os kauunxf fri «te ademd 
p>i»S) Gudrantso to uvs you tbns 
and m oneyfr i lindtitg your hon*. 
Ti«<»7322JMJ Fosl <18/2223727 


LONDON PROPERTY 


CLASSIC TOWNHOUSES IN TREE LINED - SQUARE 


'in- -. 



Now available for sale, previously rented luwnhuiQcs M CJuUw it « 

traditional Cheheu and Belgravia style squire. Each hits fmir > , n,r * wt ,h * 

'penthouse' studio room, garaging and a garden. J." , ' r,M,|as - •» 

leasehold lownhouscs and die few nminfaj ih " v 

Townhouse 17 - under offe 
Apartments from £ 250 , 00 ' 


Townhouse 13 - Sold 
Townhouse 15 - £595,000 



Harbour Estates - 07 1-35 1 2300 
CHELSEA HARB OUR, LOTS gOg^ Wl M ^ V|0 


4 


t 












OUTDOORS 


A perfect 
permanent 
partner 

Clematis and roses climb to the 
top of Robin Lane Fox’s league 



Fishing /Tom Fort 

A cast full 
of characters 

savage, greedy, unscrupulous preda- 


O ne more weekend like 
the last and the 
ground will be like a 
brick The weeds will 
have to be dead- 
headed, refusing to be uprooted. 
Summer, meanwhile, hag brought 
on the roses with a rush. 

Five years ago, I planted the clim- 
bing roses for my new garden: the 
obligatory New Dawn; the tall and 
strong red Etoile de H ollande; the 
scented head-hanging Lady Hilling- 
don; the quartered white Sombreuil; 
t- the heavy-scented pale pink Caro- 
line Teftout; silvery-white Mariam? 
Alfred Carriere in memory of Sissin- 
ghurst; double-white Mrs Herbert 
Stevens; a peach-white rambler 
which even Peter Beales does not 
list; and * my current favourite - 
the silky pink-apricot Paul Lede 
which aQ but one nursery has for- 
gotten. 

They have an flourished and any- 
one would like to grow them, but 
most of them came to me because of 
invisible memories. Beside each of 
them, I see past faces: the people, 
homes and serious gardeners 
through which these roses came to 
my notice. Whenever 1 planted a 
rose, I planted a clematis beside it; 
it is odd that so few people remem- 
bered until recently to do the same. 

The results are admirable and 
would suit any garden with walls, 
however restricted. The plan is so 
good that all the books neglected it 
and even the catalogues do not 
mention it, preferring to list clema- 
tis for trees, not roses. 

The reason must be the segrega- 
tion with which the English regard 
their national flower. They give it 
rose beds, rose gardens and rose 
arches; roses, I was once taught at 
Kew Gardens. In Surrey, must 
never ever be underplanted and in 
winter they must be primed hard to 
look like bundles of sticks. Control 
them, keep them apart, fan-train 
them on walls and never imitate the 


French. The French naO roses on to 
posts and prune them hard after 
flowering, parking them on to scaf- 
folds, Car too close together. 

On English walls, roses must 
never criss-cross and we all used to 
be told that nothing must interfere 
with a climber’s health. The idea of 
mbrinp a clematis would strike a 
college-trained gardener as absurd. 
A clematis needs a deep-root run 
and a site which does not dry out 
The base of a wall is dry and a 
neighbouring rose makes It drier 
stilL If the clematis grew, it would 
hang like a mop of green hair or go 
brown at the bottom and accentuate 
a rose’s lower nudity. 

In fact, the two families twine 
together very well and allow us all 
to double up our garden’s 
by ignoring Royal Horticultural 
Society rules. The deep violet flow- 
ers of Clematis V President have 
threaded themselves through the 
lower reaches of my large Madame 
Alfred; the orange-yellow Lady Hil- 
lingdon is crowned with the sky 
blue Perle D’Azure; sky-blue Lasur- 
stem dominates the outer edges of 
the white varieties, while various 
viticellas prolong the season by 
flowering in August 

Most of these clematis were 
planted within a foot of the rose 
and are none the worse for it Most 
of them stand beside gravel or a 
paved path while their roots can 
run deeply, exploring the cooler soil 
underneath. 

I would like to take credit for this 
easy combination, but I copied it 
from better gardeners. Anyone can 
copy it but they wiD need to think 
about the height and width of their 
clematis and to be willing to feed 
and water it whenever possible. 

People go wrong by assuming 
that most clematis grow to a similar 
height and can be planted without 
further thought In fact, they vary 
hugely and need to be matched to 
the task in hand. Tall twining roses. 


Round Colour (Ward Lock. QL99, 128 pages] 

such as red Etoile d'Hollande, need 
to be matched to a short-growing 
clematis so t hat all the flowers do 
not appear at the top of a wall. 

For tall roses, I rec ommend the 
white Clematis Henryi, mauve- blue 
Prince Charles, the dusky red 
Madame Edouard Andre for 
pale-flowered roses, and the blue H 
F Young, which flowers so 
profusely. Do not assume that all 
the late-flowering viticella forms 
are relatively short-growing. They 
are not and you should consult an 
explicit catalogue such as that 
produced by Valley Clematis, of 
Hainton, Lincoln, for details of the 
potential height of each variety. 


The shorter types of climbing 
rose, such as Lady HUfingdon, are 
easily suited in the opposite 
direction. The king of all easy 
clematis, the wonderful Perle 
d ’Azure, will race up above any 
such climber and reach 15ft in 
height, crowning ft with showers of 
its rounded blue flowers. 1 find it 
much better than the 
yellow-flowered varieties which are 
sometimes recommended but which 
are much too dense in leaf and 
growth. 

Why not have two beauties where 
conventional books think only of 
one? Promiscuity pays and 1 have 
got away with almost total neglect. 


Double-planting does not double the 
effort, but it does double the season, 
especially in enclosed urban 
gardens where the best planners 
know very well that they must 
think in terms of a jungle with 
layers. 

The one secret is to feed and 
water heavily whenever you can. 
adding Phostrogen to a can of water 
and drenching the roots of the 
clematis as often as once a week. 
Under the quiet moon of these 
recent warm evenings, it is an 
enchanting labour, tending a 
second presence among the curtains 
of roses which have just sprung to 
their yearly best. 


W hen it comes to 
machismo tn fishing, 
one bearded figure 
springs immediately 
to mind - that of the ultimate 
macho fish slayer. Hemingway. 

It is difficult to imagine that 
Ernest would have regarded any of 
our freshwater fishes as exemplify- 
ing masculinity, or - much more to 
the point - being capable of chal- 
lenging his. For him, the battle took 
place at sea, with fish huge enough 
to shatter a man’s strength and 
break his spirit They must be mus- 
cled monsters, lords of the ocean, 
creatures such as sawfish, mako 
shark, broadbill tuna, or the martin 
of The Old Mon And The Sea. 

The fish of our rivers, lakes and 
ponds are Lilliputian by compari- 
son. The tench, for instance: to Wal- 
ton, it was the physician, curing the 
ailments of other fish with the balm 
contained in its slime. 

Utter tosh, of course. And neither 
is the tench an elemental force of 
the deep. Rather, it is a lovely, gold- 
en-olive, smooth-scaled bottom- 
feeder. a quiet, peaceable inhabitant 
of placid canals and dark, reed- 
fringed ponds. 

Ruminating anthropomorphically, 
I could indeed see the tench as a GP 
in a country practice: solid, 
respected, a source of sound advice 
and well-tested prescriptions. 

He is sensible enough, but in 
terms of brainpower must yield to 
tixe carp, which is undisputed as the 
fishing world's repository of wis- 
dom. The carp is large, ponderous, 
with great maile d flanks , vast rub- 
bery mouth, and a mighty tail He, 
too, is a fish of still waters, old 
moats, monastery ponds and the 
like. His authority and reputation 
for sagacity spring from his size, 
and the difficulty anglers experi- 
ence in catching him. 

I see him as the senior partner in 
a long-established law firm - a feir 
anri moral inflnmre but sharp-wit- 
ted too; and much respected in the 
community for his work on local 
charities and as chair man of the 
school governors. 

The carp mbs along nicely with 
the ten ch , for philosophically they 
have much in common. But he has 
a powerful prejudice against his 
nearest rival in terms of size - the 
pike. He sees him as a dangerous, 
troublesome element in society: a 


tor, immune to civilising influences. 

For bis part, the pike fears the 
carp for his superior learning, and 
despises him for eating worms and 
grubs when there are more substan- 
tial meals around. The pike is a 
ru thless anri dynamic businessman 
- a property tycoon, perhaps, or 
hungry asset-stripper. I admire him 
for his dash, but think the carp 
would make a more reliable friend. 

I would be happy to make another 
friend of the chub. I like chub - 
most anglers do. He could be a cus- 
toms man, an electrician, even a 
hack. It would not really matter. 
The thing about the chub is that he 
Is a family man, can take a joke, is 
keen on rugby and cricket, always 
stands his round in the pub. 

I like perch, too. They are hand- 
some fellows, with their black 
stripes across olive sides, and red 
fins. They bristle with pugnacity 
and commonsense — would mftkp 
good police officers, backbench MPs 
of the no-compromise tendency, 
teachers of the old school. 

The roach, on the other hand, is 
fastidious and delicate - in publish- 
ing, 1 should say, or playing wood- 
wind in a symphony orchestra. 
Bream are slab-sided and boring, 
making dull speeches at dull coun- 
cil meetings. Eels are slimy and sin- 
ister offering loans to the gullible 
at murderous rates of interest. 

In the main, the coarse fish are 
professional types. The gilded nobil- 
ity, of course, is drawn from the 
sabnonidae, with the salmon, inevi- 
tably. as monarch; the trout in its 
finery as prince and princess; the 
grayling as top-drawer aristocracy. 

But how might I see myself, were 
1 to be catapulted into an underwa- 
ter world? 

1 should like bo think that I com- 
bined the wisdom of the carp with 
the athletic glory of the salmon, the 
natty elegance of the chalkstream 
trout with the hidden menace of the 
pike, the explosive power of the 

marlin with the . . . 

But no, not really. 7 would be 
content as a chub, or better still, as 
a barbel: big but not bloated, hand- 
some but not effete, strong but defi- 
nitely not macho, thoughtful, even 
a bit moody at times, but at bottom 
(winch is where the barbel feeds) a 
thoroughly decent, dependable, yeo- 
man farnipr type. 


INTERNATIONAL PROPERTY 


CACTL& PALAIS VISCONTIEN | 
Unii{ue on ifac COu d’Azur betwcca 
Cannes and Monaco, 15 minutes from | 
Nice airport, owner rents on monthly 
basis huge otd dcmainc. large 
receptions, lounges, billiard, 
b bedrooms each with own 
bathroom/dres&iijg. swimming pool, 
park, very old rose garden, panoramic | 
sea view, refined decoration. 

TeL (33) 93.9fL28.47. 

Fas: (33) 93.212729 

DORDOGNE - FRANCE OaSgWfci Molten • 
One thoueond inches trout tohkig. stating 
tor Vina. senteaa. Stotog non. QUA 
Laundry. CfOTtago. Largo OWng/lmxigo 
sow a*m x t»n (ten <0 ICs Jofci. Gafary. 
2tsgnBortumB W i UWtondioB tf enado- 

2 axrra Bodrooms cnSd bo nootpomM ki 
the Interior. Soctucted but ctoee to shoos. 
rMW ana a*m Samoa. Fleam Marti* 
Wr*, to: Box B2412. FtomcM Hmos. On 
Soiteiwsk Bridge. London SE1 9M_ 

NORMANDY CHATEAU. Fanner baenSng 
school lODr. bods, to classrooms, gym. 
rt«fML 10 eons. £200000. Tel 071 2502772 

FRENCH PROPERTY NEW* Free Monthly 
CM. new and sU prop., legal column ete. 
Ask ter your tree copy now 001 -042 0301. 

COSTA DEL SOL PROPERTIES Mmtoete 
Offices. Ft* Information & Price tat ring 
081 9033751 anyone. Fax 3550 


ISWITZERLMD 

1473 

Lake Geneva & 
Mountain resorts 

tecaOMi qre*y AJWTUOtW 

CHALET to MONIREUX, VELARS. 

IES OIABLERETS, LEYSffi. BSTXAD 

VM* CRMSDONWU. VBWffl. 

ate. From 8fc20IT«a.-C i i J| tw i n 

REVACSJL I 

■. na dt SBBA 2 

M ~4T-ar734ttro - muna 


AFRICAN WILDERNESS 

fang; re year b*n? Ibw iraf 0017 
Buy ■ | 1/1 2 done Indus prime 
Gone Rome 
, pen of a 400000 sac 
xesJAcA pnifeafa 
ran toi unco and lhar pxtix. 

Price ttsajm. 

an 01*37-1 1-3U-MM or tea Urn ee 
• lfr27-l1-7S7tea»B7bO«»2MOCMT 

FLORIDA'S PARADISE Boca RteonfPrtn 
Beach Luxury Watertnmi A Gottcowse 
Home*. Bums rep re enniatSen. No Fee. 
Contact ftestyn Corasne ARVADA REALTY 
SALES LTD Tel: 0101-407 478 6415 
Fac 0101-407 241 0028 

ALGARVE: Ou8«y starts the design. 

L« Portagoa design and buld your faun 
home In Portugal. For details 
contact PORTOGQA. T efc Portugal (351)- 
02041035 fee (SS1F6&341285 


LONDON PROPERTY 


Q UALITY THAT IS 
HFrOGNISABLY DIFFERENT. 



[ INKS GRANGE, 

NEW MAI.DEN, SI RREY 


The lel'-n .ul with 
5 Bedrooms 


Now Ho vis quality comes to Kingston upon 
Thames with a selection of five bedroom houses 
in New Malden. Situated between Traps Lane and 
Malden Golf Course, these desirable homes offer 
manv attractive features. Prices start from *345,000. 


Please telephone (081)3360521 


pJovis Homes 




raoVn 


TATES 


POPLAR GROVE, W6 

Fine Victorian house, close to Si. ranis Girls 
and the French Elysec's Jnnior Schools. 

4/s bedrooms, 2 haihrooms. guest cloakroom, 
kitchen & family room, cellar. 

Formal double reception, south facing garden. 

A bright and well maintained house. 
Freehold £355,000 Contact Wendy Kiener 
TEL; 071 602 6020 FAX; 071 602 9522 


FOR INVESTMENT? Wo ***** 
B oppWMdtfoa tor you Hmnigricas 
I London and prc"M« “ comptote 
M BOnrtco- taqwMtan . ■***£ 
mo, Lock* and Munugamart. For 
Uto lol UWIPC - 071 483 *281 


BICKENHAU. MANSIONS Wf 3Kf (tor 
s. fectog ana beatxxn flat (i10O sq H. Hlffi 
caBn^gaad candHon. Gated dhiHe Into 
mo bndroora H required. Lna 102 yre. 
El 89 ,000. BARNARD MARCUS Teh 071- 
8362736 


MONTE-CARLO 

Centrally located 
building, for sale, very 
pleasant 2-bedroom 
apartment, 140 sq. m., 
air-conditioned, private 
roof terrace, parking 
space, facing west View 
of the Monaco Rocher. 

AAGEDI 

7/V Bd des Moufins MC 98000 Monaco 
VTd 33-92 165 9S9 Fax 33-93 501 942 J 


Switzerland 

For sale, in AW Z ERE, VALAIS, 'cry 
(■tractive, canny apartment. 100 aqjn. 
3 bedrooms. 2 Vi balls, balcony, excellent 
view. SF 400000. Yon can dm bmild ftmr 
awn private chalet. do*e to resort, 3/4 
bcctoona, great view Over Rhone valley, 
authorization for sale to loreigaefs, Ehna 
SF 450000. 

Direct boro owner 
PO Box 1538, 1211 Center* 1 
Tet 41 22311 1588 Fee 41 223104033 


TURKS & CAICOS ISLANDS 


Britofa Territory jest over in hour from 
Miami, list nffirwl m rw ufy. Do nrlmiy 

controls, no incaon? or capital teats. Cootie 
Carders tnana ii tta from USJIS^OO. 
Soduded location on or near beach. 

these and other H«ndpropert» contact; 
OmuwPsorcznBLjn 
7M8l7,QBdl\i&-TlatoA Caen Unite 
IttOTWdaUl ftc8D9P»3iI2 


NYC MANHATTAN 
EAST 80'S 
PREWAR CONDO 7 


3 BcdroomObaJh apatmat wnb nanfann. 
1700 aq. ft. 17 x 20 <L tiring room 
Fuflsavicc door ma n bldg. Asia 5695K- 
Low Common Ctnages; SS4&0O'!! 
Mow- mamrffflfg. EXCL 

MASCO COODALE 1IMMM 
CSEENTBAL REHDKNTIA1. 


TUSCANY In monastery on hil top. 
Prestigious panoramic twelve zooms 
reddendo a«t 0*den sunounded By taresL 
AB madam conwfliencee SAOOO dating 
Itt Rdy 577678244 Ttt 081 542 9210. 


COTE D'AZUR - VENCE Spacious 
prouanede «Na, a b ortocma. 2 bBhnxaue. 
anfcad pod, wflnderti v^s. 16 n*s Neo 
afcxrtFfc iTrtT* (UK) 0003 «2842 


ALPS -YAJa twigs of properties h French end 
Alps. Af*s ■ FF 250.000 •: CMWS ■ 
FF 660000* 4 Quran - RFIttOOa. Sawfe 
bnmobta L*i 081 570 1770 

SMt-SMSBeCHANQERSUK. Reps* Ug 
OEEih loi4 be*mtere*tpod.«irpnfc 
jbLT.V. Conte n*Wy GfiwitervWtebcte • 

raaaniK onatsnw. 

PARIS LA DEFENSE S mine walk 
buCnaes corterwee * tewpjteng cwteo In 

pettasBIwi rono near senools ♦ grins. Bfcn* 

-4 ROTS -SffiBMr t**g NVWSEDOuaa 
Rrino fw 34 Bertm) + 2 Baton - ffiessmg 
im - fitted cupboards - oqupped uawt, 
bath im - sep WAV - cellar - parting 
gardens + nordcaa. FFRS 1.125.000 
Pnom: Paris 47 73 30 75 


EATON MEIVS NORTH 


Exceptionally large Belgravia 
House, in exdnsive cobblesoned 
mews, consisting of desk 
decorated (fining rocen and I 
3 bedrooms, 2 baths. 1 WC 
garage. Feamrmg a unique old 
Engfish poh/wine cellar. Long 
leasehold. Asking £585,000. 
For details Call D J Lewis 
USA 1-212-316-0027 
FAX: 1-212-865-4894 


COTE D'AZUR 


ALPES MARITTMES & VAR 
SPA fEU) PROPERTIES 
Sell the best apartments and villas in 
Carnes, Monte Cola. Sc. Tropez, 
Vettce. zkntibes, Metuaa end ocher 
desinMe exclusive locations. 

Tel: 071-1&3 0606 Fax: 071 -4S3 M3$ 


SOUTH FRANCE - ANDORRA 
PROPERTY FINDERS 


Anglo French parmexsbip wfl) find your 
propert y . Full, proam service saving 
you weeks or wasted time. We act for 
buyers only, gaamteonig objective 
stnvev and crirkjne. 

For full details phase 
Fate (33) 63754128 Td: (33) 63754393 


ra SWISS ALPS 

LES OIABLERETS 
Apartments and chalets in typical 
Swiss vfiage tor holidays 6 investment j 
winter & s umme r. Skong to 3000m. 
Prices from SF 250.000 (Cl 13,000) 
with per missi on tor tors ignore to buy. 
Local Swiss mortgage available. 

Ring London on: |3nH 

TeVFroc 081-892 5910 Efl 


PETER BEALES ROSES (FT) 
LONDON ROAD 
ATTLEBOROUGH - NORFOLK. 
TEL: WSS 454707 
FAXi B9S3 456845 AT 


TENNIS COURTS 
SHORT TENNIS 

Eaioy tensisati year rowsd oa an 
smatatve aiatnariMacc free asfaiooed 
ptaying otrface. Ideal abo far footbalL 
baskctbdL badnintoa, erieko pncnce. 
ccdnll. roller skating ere. 

Derate rrowTECNOTTLE 
TetOTl 639 2 B 46 Fax: 071 639 2618 



SOUTHERN SPAIN. Country villas. 
Rncas (lama) as of £2Sk In one x» the 
mote beaufflul areas In southern Spam, 
inJu0nq SO at Ota UrgaS naftre naaves 
In Baopa Also agera wanted. AXAROUA 

REAL ESTATE SJ- Plaza de Alir^ara 5. 
2975* Compete (Malaga) Spain. 
T* (34) S 2553368 F« P4) 5 2S53SS7 


GARDENING 


Classic Rosts 

BY FETTER BEALES 
The latgest collec6aa of g rnuin C old 
rases embracing shrubs, climbers, 
ramblers and the bear of recent times. 
Over 250 of which or unique to to. 

Ait described in onr free. 

comprehensive, foil colour catalogue. 


Purely exceptional. 4-1 indivi- 
dually styled villas standing 
between the Beauvalion golf 
course and the Bay of Saint 
Tropez. 

Become (he owner of an exclusive 
villa on this secluded estate 
bordering one of (he longcsl- 
esLabllshed golf courses on the 
Riviera. 

lovingly buih by craflrucn using 
traditional materials such as band 
made ceramic and antique tiles, 
every villa enjoys spectacular 
ticus of the sea. the golf, the 
vineyards and the surrounding 
countryside. 

Round the clock security is 
ensured by a 24 hour security 
guard and by a centralised 
surveillance nf all the villas that 
ran instantly detect any presence. 







A full time service team is on 
hand (o ensure die maintenance 
of lawns and swimming pools, 
who also provide supplementary 
services that will make your life 
easier : theatre or concert 
reservations, airport transfers and 
shopping for the essential 

supplies you will need in vour 
villa when you arrive. 

These are some of ihe features 
that make Lcs Parcs de 
Beaurallon an exceptional 
development- Furthermore, the 
professionalism and expertise of 
the developer arc the guarantee of 
a sound real eslate investment 
Judge for yourself : spacious 
living rooms (4 1 nr"), loggia, patio, 
fully fitted kitchen. 2. 3 or 4 
bedrooms (24nr each} all with m 
suite dressing room and 
bathroom, outhuilding. garage 
(35itr), aod private cascade 
swimming pool. 



Les Parcs de Beauvalion - Beauvallon-Grimaud - 83120 Sainte Maxime - France 
Tel : (+33) 94 56 48 48 - Fax : (+33) 94 56 48 82 





■ - , ] 


XX WEEKEND FT 


ARTS 


A long way from the Nile 


W ith its challenging lead roles 
and prohibitive demands for 
choral and scenic splendour, 
Aida is an opera that compa- 
nies do not essay often. Failure in It can 
be both spectacular and costly, as the 
opera tempts the incautious into stagings 
that only end in boom or bust 
The Royal Opera had a bad experience 
with it last tim e in 1981 This new produc- 
tion has been entrusted to Elijah Mosh- 
insky, whose previous encounters with 
Verdi had shown him to be a safe pair of 
bands. Faced with a relatively small stage 
and a budget probably of the same propor- 
tions, he elected to try the bare stylish 
look in vogue in so many other recent 
productions. 

Moshinsky and his designer, Michael 
ypargan, seem to have seen them all An 
informed opera audience could spend 
happy hours spotting visual references 
that were striking elsewhere and (given 
the lack of anything else to exercise the 
mind) probably will. Do not expect pyra- 
mids or vistas of the Nfle. An imposing 
curtain decorated with hieroglyphics is 
the only pointer towards Egypt, while the 
costumes are outlandish in every sense: 
the triumph scene looked like a United 
Nations convention attended by Arabs, 
Indians, assorted Africans and a few 
guests who bad turned up in fancy dress. 

Without being told beforehand, one 
would he hard pressed to tell that this was 
a new production, so diffuse is its concen- 


tration. For all its pomp and show, Aida 
focusses intently on several of the thanes 
most personal to Verdi: the tension 
between church and state, the dilemma of 
the individual forced to choose between 
private emotions and public duty. Jn the 
final act these opposing forces should gen- 
erate such intensity that the characters 
seem tom apart from within. 

In feet, the only Individual on wham 
Moshinsky gets a grip is Badames. In this 
production we watch his precipitous tum- 

Richard ¥ airman reviews 
Elijah Moshinsky' s new 
production of 'Aida' at 
Covent Garden 


hie from triumphant warrior hailed in a 
shower of gold to a grizzled, grey-haired, 
broken man, buried alive while the rigid 
Egyptian society which has condemned 
hfpi carries on its daily routine above. 
Dennis O'Neill is no Pavarotti (the steely 
vibrato in the voice is an unappealing fea- 
ture) but he has spontaneity, passion and 
guts. He delivered the goods. 

Singing her first Aida, Cheryl Studer 
signally failed to do that This voice, 
which has excelled in so many types of 
music on disc, is essentially a lyric 
soprano, on the shallow side for the heav- 


ier Verdi roles. St was dear from the start 
that she wanted to make a lyrical (not a 
dramatic) Aida, spinning long Stranssten 
vocal lines, but as the evening progressed 
her cn ofiflgnpp seemed to dip away and 
her sense of pitch slipped with it later 
performances may find her in better farm. 

Ludana cTIntmo is a young and attrac- 
tive Ahmeds, with a fondness for old-fash- 
ioned gestures. Her voice is firm, well-cen- 
tred. just big enough at Covent Garden: 
she keeps strictly within her means, winch 
would be admirable in any role but this, 
which, asks for a singer who will let rip (as 
Cossotto did so memorably). Alexandra 
Agache makes a forceful, brutish Amon- 
asro. Mark Beesley's King had trouble 
keeping bi tune. A bald Robert Lloyd looks 
as if he is the local Hare Krishna 

group, but sang with gravity as Ramfis. 

His jj Tfritenumt to WOT fezfed 1 0 
the chorus, whose cries of “Guerra” were 
so tepid as to promise immediate surren- 
der. Edward Downes is the conductor, who 
roused hims elf and the orchestra to more 
urgent action after the interval. Even so, 
this is a score of violent contrasts, of 
sounds wildly high and low, loud and 
quiet, harsh and soft, which he renders as 
a solid grey. A self-confessed Egyptologist 
assures me that, when, translated, the 
hieroglyphics on that curtain read, "Yes, 
bust again! getter luck next time'’. 

Sponsored by P&O. Further performances 
untO July 22 (with changes of cast). 


A s Wagnerian debuts 
go, Robert Careen 
has done rather 
well. The prolific 
young Canadian has spent 
most of his career scoring suc- 
cesses in French and Italian 
repertoire. Given his ability to 
tap singers’ acting skills and 
his refusal to over-conceptu- 
alise, he was ripe for the wider 
spaces of Wagner. Lohengrin at 
Geneva’s Grand Thdatre fulfils 
most expectations, while sug- 
gesting he still has something 
to learn. 

Careen sees Lohengrin as a 
parable of man's political and 
social condition. T.fke the peo- 
ple of Brabant, we all seek a 
better world - preferably one 
in which problems are solved 
in a twinkle by some miracu- 
lous swan-knight - but are 
brought back to earth by the 
self-destructive tendencies of 
human nature. 

Brabant, in Paul Steinberg’s 
designs, is a bombed-out con- 
crete shell of a building, not 
unlike a modern theatre or mil- 
itary hangar. Its drab, easily- 
manipulated inhabitants are 
all too ready to share Elsa’s 


Lohengrin as 
a parable 


dream of a saviour to deliver 
them hum internal strife and 
external threat. That the 
dream bears no relation to 
reality is dear when Lohengrin 
arrives like a ro man tic cru- 
sader stepping out of a 19th 
century painting. 

Dressed in a business suit far 
Act two, Lohengrin imparts 
confidence like a politician or 
merchant h anker After “111 fer- 
nem Land", he withdraws as 
he arrived - leaving young 
Gottfried to plant a tree of 
hope for the future. The moral? 
Don’t count on Messiahs, there 
is no quick fix; humani ty must 
leam to solve its problems the 
hard way. 

Within this late-20th century 
allegorical framework. Careen 
allows words and music to 
speak with uncommon free- 


dom- His handling of Telra- 
mund and Ortrud - Wagner’s 
Macbeths - is psychologically 
acute, while the subtle variety 
of lighting (Dominique Bru- 
guidre) is alone worth the 
ticket On the debit side, the 
choral processions find Carsen 
floundering for ideas. There is 
a touch of bathos in the way 
Lohengrin’s swan bows its 
head Kke a mechanical toy, 
and the bed-making routine in 
the bridal chamber is a comic 
lapse of taste. 

On this evidence, Thomas 
Moser is probably the finest 
Lohengrin since James King. 
The voice has a sweet lyrical 
ring rather than clarion power, 
and he shows exemplary con- 
trol and musicality. With his 
tall, bearded appearance, he is 
every inch the part His Elsa is 


Eva Johansson, a blonde bomb- 
shell who sings radiantly and 
makes a playful bride. Hartmut 
Welker is the stentorian Telra- 
mund, Marilyn Zschau a 
two-faced Ortrud who could be 
auditioning for Dynasty . Bike 
WDm Schulte repeats his fine 
Herold from Bayreuth, while 
Hans Tschammer's King Henry 
- dressed like a general - is a 
model of dignity. 

No reservations about the 
cast - nor about Christian 
Thielemann' s conducting. His 
speeds are spacious but power- 
fully sustained, so that Wag- 
ner's long crescendos develop a 
crowning inevitability. He elic- 
its string playing of extraordi- 
nary finesse at the crux erf Act 
two, and the work’s melodic 
poetry comes over strongly. 
Thielemann's Lohengrin has 
the stamp of authority usually 
associated with an older, near- 
extinct breed of German con- 
ductor. Nothing could be more 
reassuring. 

Andrew Clark 

Final performances June 20, 
24, 27 and 30. 



Celebrating 


/fCrrw^ 


J.R Morgan is proud to sponsor Willem de 
Kooning : Paintings . It’s the first major 
international exhibition devoted exclusively 
to the paintings of one of the most impor- 
tant figures in 20th-century art 

Organized by the National Gallery of Art, 
Washington, D.G., in association with the 
Tate Gallery, London, and The Metropolitan 
Museum of Art, New York, the exhibition 
features more than seventy works that trace 
de Kooning’s painting mastery and artistic 
evolution over five decades. 

Willem de Kooning: Paintings opens at 
the National Gallery from May 8 through 
September 5, 1994. 



JPMorgan 


Every picture tefls a story - - - ’Dm Scufcjtor 1 , 1982, by RJS. Kitaj 


Narrative painting 
gets lost for words 

William Packer reviews the KB. Kitaj retrospective at the Tate 


R onald Brooks 
Kitai was bom in 
1932 In Cleve- 
land. Ohio. His 
early adult life 
was spent as a merchant sea- 
man, with intervals of study at 
the Cooper Union in New York. 
Then, in the mid-1950s, came 
National Service after which, 
in 19S7, he came to England to 
continue a now subsidised edu- 
cation under the terms of the 
GJ. BIIL He spent the next two 
years at the Buskin School at 
Oxford, followed by a further 
three in the Fainting School of 
the Royal College of Art in 
London. By the early 1960s he 
was established as a central 
and influential figure within a 
loose freemasonery of artists 
that included not only such 
college contemporaries as 
David Hockney, Adrian Beg, 
Allen Jones and Deck Boshier, 
luminaries of the British strain 
of Pop-Art, but ranged from 
Bacon and Freud, Caro and 
Paolozzi to Hodgkin, Tilson, 
Blake, Andrews and Auerbach. 

He has remained in London 
ever since, not as refugee or 
committed expatriate, but by 
habit, as he puts it, a cultural 
vagrant after the fashion of 
Whistler, James, Pound and 
Eliot. He remains essentially 
American, and an outsider, con- 
scious of his own displacement 
and ever intrigued by the dissi- 
dent, tile stateless and the dis- 
possessed. His own Jewishness 
gives such self-awareness a 
particular edge. The diaspora 
In general and the Nazi perse- 
cutions are his constant leztmo- 

m 

He has always been a narra- 
tive painter, which is to say 
one who would always impose 
a reading, a story or scenario, 
upon the work, no matter how 
ambiguous or imprecise the 
physical working erf the paint- 
ing may then render it Of one 
of the earliest paintings, the 
“Tarot Variations” of 1958, be 
says: "My journal entries far 
this painting are lost and I 
can't remember what exactly 
stands for what, but Eliot 
claimed that characters and 
genders melt into each other in 
(The Waste Land) and anyway 
I have obviously departed to 
suit my convenience." 

The assumption was and 
remains that there would 


indeed be a journal entry. The 
danger is always that the jour- 
nal entry, the literary content, 
might move from mere explica- 
tion to justification of the 
work. The visual intoest aid 
quality of the painting, as a 
painting , should be what make 
it interesting or otherwise, 
good or bad, no matter how 
recondite or abstruse its exi- 
gesis - or every Crucifixion or 


the “Smyrna Greek", are those 
which attempt a fuller resolu- 
tion In the statement of the 
image, and a richer, mare con- 
sidered quality on the handling 
of paint and surface. In other 
words, they are more interest- 
ing as paintings. Perversely, 
they serve only to point the 
technical emptiness of the rest, 
which amounts to drawing out 

and filling in 


‘ This intellectual collage-making 
masks the ever more perfunctory 
nature of the paintings themselves ' 


Annunciation or Triumph of 
the Red Anny would be as 
good as any other. But Kitaj 
parades his learning 
unabashed, his bookishness, 
bis art-historical enthusiasms, 
hiy philosophical and political 
obscurities, his louche fohta- 
sies and personal adventures. 
Every picture tells a story. 

At what point does the story- 
telling take over? Of his com- 
plex allegory, "If Not, Not” of 
1976, he writes: “its sense of 
strewn, and abandoned things 
was suggested by a Bassano 
painting, of which I had a 
detail, showing a ground after 
battle... The general look was 
inspired by Giorgione's “Tem- 
pesta". . . My journal reports a 
train journey someone took 
from Budapest to Auschwitz to 
get a sense of what the doomed 
could see through the slats of 
their cattle cars ... Since 
Pve read that BuchenwaM was 
constructed on the very hill 
where Goethe often walked 
with Ecfeennann.” 

It may seem gross to carp at 
such thing s, but this intellec- 
tual collage-making - which 
matches the collage-like tech- 
nique of Kitaj ’a actual picture- 
making - masks repea tedly the 
ever more perfunctory and for- 
mulaic nature of the paintings 
themselves. "Oh how clever 
and thoughtful and serious an 
artist I am", he would seem to 
say, “and so how clever, seri- 
ous and thoughtful my works 
must be.” It doesn’t follow. 

The few paintings which are 
successful, and actually beauti- 
ful, such as the tall, thin fig- 
ures of the mid 1970$, “the 
Arabist", “the Orientalist” and 


The great Kitaj myth is that 
he is a consummate draughts- 
man. Rather he 1$ a mannered 
and careful draughtsman, pre- 
cious of surface effect in the 
use of pastel and charcoal He 
looks to Degas, whose draw- 
ings “are one of those artistic 
achiev ements by which I mea- 
sure all art", but shares none 


of that infinitely greater art- 
ist’s sense of adventure before 
the model takes none of Us 
risks. 

This retrospective is overdue 
for an artist of Kitaj's reputa- 
tion. It is indeed an important 
show, though not perhaps in . 
quite the way expected, re- w 
evaluation rather than celebra- 
tion. What is touching is his 
honesty, for there is no doubt 
that he believes in the signifi- 
cance of what ha does. Hare 
stands the Emperor in his 
innocent complacency; for us 
to see him in all his mortal 
fallibility. 

RJB. Kitaj; A Retrospective; 
the Tate Gallery, MlUbank 
SW3 until September 4, then 
on to Los Angeles and New 
York. Recent Pictures and 
Graphics 1974-1994; Marl- 
borough Fine Art, 6 Albemarle 
Street Wl, until August 20. A 
Print Retrospective; Victoria & 
Albert Museum, until October 
9. 


ART GALLERIES 

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ST. JOSEPHS 
HOSPICE 

MARE ST. LONDON 18 4SA 
(Chanty Ret No. 231323) 

Dear Anonymous Friends, 
Yoo cbd not wish your gifts 
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WEDNESDAY 6 JULY 1994 
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Accademia 

I T Al l A N A 

34 Rutland Gat* London sw 7 

29 th April - 24 th July 1954 

Tuesday to Saturday 
10 am -5.30 pm 
Wednesday 10 MU-S pin 
Sunday 12 noon - j.30 pm 
Sunday 15th May; 
2-jopm- j.jopm 

Entrmce ft* Owe £f.y, 
Infamaticn telephone: 07 1 3*5 3474 
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D*ANGEU 
EDITORS Saa 


Cadenza 






ARTS 


Vi 


Sweet 

Bird 

takes 

flight 

Paul Driver on a 
new production at 
the National 

T here were 
moments during 
Richard Byre's new 
production of Ten- 
nessee Williams’s 
Sweet Bird of Youth in the Lyt- 
telton Theatre when the Amer- 
ican accents affected by a pre- 
dominantly British cast slipped 
so badly that I started fantasis- 
ing about a production done 
unashamedly in En g li sh theat- 
rical tones - a sort of Ascot 
Williams, fall of WDdean pro- 
nunciation and poise, thnng h 
without chang in g a word. 

The power of the play cer- 
tainly would not be dimmed 
and a point about its dogged 
universality would, perversely, 
be made. Better, at any rate, 
such bizarre styhsatton than a 
performance in which the lin- 
guistic mask of raw passion is 
constantly being dropped and 
something like an Raiitng com- 
edy seems snickering behind 
every other vowel 
The worst offender is Rich- 
ard Pasco’s Boss Finley - 
Bible- bashing demagogue in 
the Southern American town 
of SL Cloud - whose public 
and private ranting passes 
muster but who cannot wmi» 
his conversational tones con- 
vincing for a minute. Alison 
Fiske’s Aunt Nonnle substi- 
tutes sobbing for speech fames, 
which is cheating a bit Diane 
Langton’s bar-propping 
southern belle, Miss Lucy, tries 
too hard with her accent and is 
often unintelligible; while 
Emma Amos as Boss Finley’s 
pretty blonde but - so we dis- 
cover - venereal daughter, 
Heavenly, is so measured of 
speech as to be incredible. 

Robert Knepper in the male 
lead as Chance Wayne is, 
though, a native speaker and 
with his James Dean looks, 



Celebration at the fairs 


Clars tSgghts as Atarendra: a wonderftdy spirited and wttly performance 


prettOy muscled torso, and his 
authentic air of twitching, fast- 
talking, last-ditch desperation, 
altogether appropriate in this 
gigolo role (originally taken by 
Panl Newman). But even he 
produces oddities of speech. 
Lost in the hotel of heartbreak, 
he twice at the end tens his 
client, the ageing film star 


The Official London Theatre Guide 


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Theatre line 

T-Call theC836TbeaLrelinenumbe« ia this 
guide for more information and daily 
soat a vails bi! it y on each show. 
Calls«»t39pcbcapraleor49patallolher 
timesinUK. 

Thca treline to presented by S.O. L.T.ln 
association with F.T. City line. 

Fdrdai lyses la vailabilitvonly call 0836: 
430959 nays 430%2 Thrillers 
430960 MusicaWSIWfiSChlkinsi’iiSmws 
430961 CBmedies4M9MOperaBaU.DaKg 




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• . 23 '30 June & 7- 5 July 

r Hamlet 

y . ^ 1,2. 4 July 

Z 1 T 3 rpheusjh the 
; f "’ Underworld 

4B ■■ 

' •“ . - 5. 6 Jill}' 

« Triple Bill 


aSeB 


e CapeBallet 


Sadler's Welts Theatre 

071 273 SSI 6 


Alexandra del Lago, “I couldn't 
go past my youth, but Tve 
gone past ft? and each time 
emphasises the "it” (rather 
than “gone"), which does not 
quite work as an off-the-cuff 
allegorisation of the enemy 
Erne. 

nhan«» is a i-hanrw indeed; 
but when his head is held to 
the mirror by Alexandra and 
she exclaims “Face it”, I am 
not sure what Z reckon to that 
particular pun: is it poetry or 
bathos? This would, of course, 
be a criticism of the text rather 
than the production. The text 
which Eyre uses is, however, 
specific to the production, com- 
piled (as he writes) from five 
manuscript drafts, and consid- 
erably at variance with the 
Penguin edition. 

It is, for instance, not clear 
whether Chance is the direct 


or only indirect agent of Heav- 
enly's infection. The last scene, 
in which Alexandra's career is 
restored by the phone-call that 
seems fa) finish his hopes, and 
he remains in St Cloud to face 
emasculation by Boss Finley's 
men, is altered in a way that 
toys with the idea of redemp- 
tion. 

There me strengths to Eyre’s 
production - this final tableau 
suggesting purgation is per- 
haps one of them. I hked the 
indigo-violet sunset cyclorama, 
designed by Anthony Ward. 
Clare Higgins as Alexandra, 
aka The Princess Kosmono- 
polis, gives a wonderfully spir- 
ited and witty performance, 
ha- accent holding as she des- 
patches such Dorothy Pariter- 
isms as Tm being used. Why 
not? Even a dead race horse is 
used to make glue.” 


SOUTH BANK 

Tcl/CC 071-923 3600 I 0 :im- 9 pir. daily -Rcctf Charily 


«Jun 

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hflJtn PMbannooia Orcbaotrs, YosILtari _ . , 

1740 Btndi VkAi Com Nol i;BsMtiowmVloOn Cone Symphony No. t 

RETURNS ONLY 


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N o one Is more sur- 
prised than the 
dealers. From Gros- 
venor House and 
Olympia to the specialist 
Ceramics Fair at the Park Lane 
Hotel, the London art market 
is humming Last year, visitors 
to the Grosvenor House Art 
and Antiques Fair idly 
inspected the odd item. But as 
the doors opened this year, and 
those at the head of the queue 
purposefully strode in, it was 
clem- that business was about 
to be done. 

It was clear, too, that the 
dealers were there to move 
their stock. Most seem to have 
decided that they can no lon- 
ger afford to use Grosvenor 
House simply as a showcase. 
Gone are the Elm pictures, the 
Efim sculpture, bravura dis- 
plays of suites of powder blue 
and gilt Austrian fUrniture. 
Truly exceptional works of art 
were relatively few, although 
Angela von Wallwitz was 
rewarded by showing her spec- 
tacular Meissen wine ewer in 
the form of a fantastical roar- 
ing beast Modelled by J.G. Kir- 
chner for Augustus the 
Strong’s Japanese Palace in 
Dresden around 1728 and over 
half a metre hi g h, this found a 

new home in the first two 
hours of the private preview. 

Most stands appealed to the 
middle of the market and 
recorded a high turnover of 
less expensive items. Good 
“brown” English furniture 


was, as ever, the mainstay of 
the fair, Apter-Fredericks, for 
instance, sold half his stand on 
preview day. The demand for 
jewels and precious ottfets d'art 
appeared no less enthusiastic. 
By noon on the first day. New 
York-based A La Vieille Russie 
had achieved sales exceeding 
the total of their business at 
the 1993 fair and by the first 
weekend, stiver dealers JJL 
Bourdon-Smith had sold 30 

PThlhita 

Much to the dismay of the 


experience at the fair. George 
Carter’s elegant, understated 
and unifying design gave the 
stands a more substantial feel 
(no more flimsy partitions) and 
substantially higher ceilings. 
Even the air conditioning 
seemed more efficient. The 
Grosvenor House Fair, which 
closes this Saturday at 6 pm, 
could not have hoped for a bet- 
ter Diamond Jubilee. 

Over at Olympia, the Fine 
Art & Antiques Fair could cele- 
brate Its 21st year too. Long 


Business in booming at both 
Grosvenor House and Olympia this 
year , reports Susan Moore 


Jeremiahs, the long-overdue 
abolition of dateline restric- 
tions this year did not alter the 
character of the fair. Instead tt 
treated us to Yves Mikaeioffs 
appropriately surreal display of 
the petal-backed ebony arm- 
chairs that Sue ntv i Marie cre- 
ated for a famous Paris per- 
fumery in 1923, and the 
traditional inraa of the Phillip 
de Laszlo portrait at the Chris- 
topher Wood Gallery. The most 
unexpected sight was the bare 
buttocks and suspenders of an 
Allen Jones tucked in among 
the old and modern masters at 
The Dover Street Gallery. 

Far more dramatic was the 
transformation for tie better of 
the appearance and qualify of 


considered the poor relation of 
Grosvenor House, it has gone 
from strength to strength, 
attracting ever more serious 
exhibits and visitors as well as 
finding room for more off-beat 
collectables. 

Here, too. furniture and sil- 
ver enjoyed an exceptional 
year - some even record sales. 
Silver dealers Marks Antiques, 
for example, sold a pair of Paul 
Storr wine coolers for around 
£40.000, and two rare James I 
goblets for the same sum. The 
fair drew a record 37,549 visi- 
tors - and purchases out of the 
Metropolitan and Berlin Muse- 
ums. 

A similar tale was told at the 
International Ceramics Fair 


which got off to a rip-roaring 
start on June 10. What was 
noticeable here, unlike Gros- 
venor House, was that all the 
really good things seem to 
have sold, mostly on the first 
day. English exhibits were far 
more interesting this year and 
the qualify of the French por- 
celain as good as ever. Cru- 
cially, prices were more com- 
petitive too. It was the liveliest 
fixture in years. 

Anyone doubting that it is 
still possible to find excep- 
tional and relatively inexpen- 
sive works of art on the market 
should make a pilgrimage to 
Agnew’s current show. Arte 
Sacra Antics (43 Old Bond 
Street, Wl, until July 22). In 
pride of place among this small 
but choice group of 14th and 
15th century panel pointings, 
illuminated manuscripts and 
mafolica hangs a “lost” cruci- 
fixion by Gentile da Fabriano, 
the leading Gothic painter in 
Italy. The panel, its gold 
ground overpainted, had been 
sold at P hillip s m 1991 , cata- 
logued as workshop of Ugolino 
di Nerio. for £68,000. 

The Crucifixion has been 
identified as the crowning 
panel of Gentile’s partially re- 
assembled “Valle Romita” 
altarptece of 1410-12 In the 
Brera Gallery, Milan, where it 
was on display last year. 
Despairing of a sale, or perhaps 
to force the Italians’ hand, the 
painting is on offer in London 
at £2.5m. 


Manifesto for the masses 


T he best of miracles, 
said GEL Chesterton, 
is that they some- 
times happen. Possi- 
bly; but our own century’s 
apparent mlrariga have a way 
of backfiring, or emer gin g as 
mountebank’s legerdemain or 
the self -deluding optimism of 
the faithfuL 

Recent revivals of A Doll's 
House have reminded us of 
Ibsen’s conviction that sexual 
equality would require a mira- 
cle in people's attitudes. And 
another great dr eam of our 
time, tim Utopia formulated by 
communism in response to 
Marx’s theories, is still wist- 
fully or bitterly lingering In 
the cold dawzz of triumphant 
market forces. Manifesto at 
Battersea Arts Centre, aptly 
installed in the paternalisti- 
cally self-assertive architecture 
of the old town hall in Laven- 
der Hill, is a threnody for com- 
munism that almost turns into 
the kiss of life. 

Volcano Theatre Comany, 
directed by Nigel Charnock, 
presents physical, stylised per- 
formance. They have adapted 
work by Steven Berkoff and 
Tony Harrison but for their lat- 
est show has no specific 
author. Manifesto draws from 
sources as diverse as Arthur 
Koestler and the Dadaists; the 
French Revolution and Mayak- 
ovsky; above all, Marx and 
En gels. 

A sloping ramp like an 

indoor ski-track is manip ulated 
in the course of this 75-minute 
exercise. The company com- 
prises four men and two 
women who play with lithe 
grace, sinewy elegance and a 
mixture of menace and irony. 
At times the text becomes a 
kaleidoscope of the clichfss of 
political jargon. All sides are 
given a hearing or, if you pre- 
fer, allowed to condemn them- 
selves: revolutionaries, fat 
cats, liberals, reactionaries, 
artists and Philistines. Other 
certainties besides death and 
taxes emerge: that the bour- 

Cbess NO 1026 

1 Rxe7 Rxe7 2 Rxe7 Kxe7 3 
Nd5+ Eefi (the BK must 
guard its Q) 4 Nc7+ Ke5 5 
Qd5 mate. 


geoisie ultimately gets clob- 
bered by everyone; and that no 
Lloyds name should under- 
write a creative artist in times 
of social upheaval. 

Images and music range 
from dancers spouting dialectic 
as they niftily execute Fred 
and Ginger numbers; and a 
prisoner’s blindfolded eyes as 
they no less niftily execute 
him. Words include first-per- 
son recollections of political 
violence against the bosses of 
industry, and the pleasantly 
materialistic credo of a suc- 


cessful businesswoman. 

After about an hour the ele- 
giac tone for the Utopia that 
never was leads to an apparent 
ending and applause. The act- 
ors sidle back, glaring at the 
audience, pretending to spot 
such contemptible types as the 
“Guardian-reading pseudo-fem- 
inist new man radical”, though 
mercifully not the costive, 
jaded note-scribbling Financial 
Times theatre critic. The com- 
pany has a gift for the striking 
tableau, the acrobatic tumble, 
the sculptural grouping. Noth- 


ing much is settled, nothing 
finalised, no decision reached, 
except perhaps that revolution- 
ary politics is still a primal 
soup from which something 
terrible or beautiftil or plod- 
dingly mundane may come. 
The sad little realisation, per- 
haps, that man is a competitive 
creature; collectivity is not in 
the nature of the beast Full 
marks for vigour, freshness 
and passion. I am still not sure 
about the miracle. 

Martin Hoyle 







mm 


Hotels at the Arena * British Airways London - Verona 
Orchestra Stalls Front Row and elevated Side Stalls close to the Stage 

72nd OPERA FESTIVAL IN THE ARENA OF VERONA 


Travel 

Dates 

Operas 

Hotels 

Prices 

Fri-Mon 

08.-11.7.94 

NORMA OTELLO I A BOHEME 

Colomba 

£ 1,200.00 

Krt-Sun 

29.-31.7.94 

NORMA AIDA 

Milano 

£ 900.00 

Mon— Fri 

0I.-O5.&94 

OTELLO NORMA ■ AIDA 

Milano 

£ 900.00 

Fri-Mon 

12.-15.8.94 

OTKLLO- NORMA AIDA 

Colomba 

£ 1,200.00 

Wed-Fri 

17.-19J8.94 

AIDA - NABUCCO Premiere . 

Milano 

£ 1,000.00 

Hri-Sun 

19.-2 1.8.94 

NORMA -NABUCCO 

Milano 

£ 800.00 

Fri-Mon 

26.-29.8.94 

LA BOIIEME ■ NORMA ■ NABUCCO 

Colomba 

£ 1,200.00 

Tue-TTiu 

30.8.-1.9.94 

AIDA - NABUCCO 

Colomba 

£ 1,000.00 

Fri-Snn 

02.-04.9.94 

LA BOHfcME NABUCCO 

Colomba 

£ 1,000.00 


Prices include Hotel accommodation, Opera tickets, 

British Airways scheduled economy flights Galwick 12.45 p-m. - Verona 3.40 pjn. 
(home: Verona 4.35 p.m. - Galwick 5.45 pjn.) 

Splendid unlimited view from front row and proscenium-like elevated side stalls 

(dose to the stage) 

Accommodation at good Hotels at the Arena in mediaeval Verona, 

English speaking staff, air conditioned rooms with bath rooms: 

Colombo d’Oro****, No 1 Opera Hotel, Arena 190 yards. Opera House 170 yards 
Milano***, Verona's Hotel doscst to the Arena, 70 yards 

This b a high quality Opera Travel Programme, conducted since 1977. 

The Tour Operator attends all travel dates and all performances. 

For detailed information. Arena seating plnn. Arena by air poster showing 
position of seats and hotels, and cast list please contact: 

Robert Schweitzer - Opera Travel to Verona 
D-64368 Obcr-Ramstadt * P.O. Box 1 155 * Niedcr-Ramstadter StruBe 44 • Germany 
Telefax 010 49 6154 52600 • Telephone 010 49 61 54 3021 
Champagne Delivery since 1977 



Air Travel Organizer’s Licence 
of Civil Aviation Authority London 


Agenda Covenzionata 
Enie Lirico Arena di Verona 



r 





XXII WEEKEND FT 


I t was the gloss? black 
weekly Ebony which 
christened James Bal- 
dwin “The Angriest 
Young Man” in 1961. 
Bat it was his appearance on 
the cover of the “white" Time 
magazine, and an adoring 
interview on CBS TV prime 
timp news, that established the 
most successful black writer of 
the early 1960s as a household 
watwp in the US. The radical 
firebrand was created not on 
the black campuses of Amer- 
ica, nor on the streets of north- 
ern ghettos but in the minds of 
white New York liberals. 

White America came to 
believe that Baldwin spoke for 
the restless black masses. But 
the truth is that Baldwin never 
had the credibility, the staying 
power or, ultimately, the cour- 
age for the role. 

Unfortunately David Leem- 
ing, who was his “secretary” - 
a minder, nurse, and fixer - 
between 1964 and 1967, sub- 
scribes to the myth. But it 
takes an enormous feat of self 
delusion to sustain the notion 
of Baldwin as black hero 

through 400-odd pages. 

He was bom in Harlem in 
1924 and became one of Har- 
lem's many precocious boy 
preachers, Able to move crowds 
with his righteous fervour. It is 
no accident that his most 
famous essay title came from 
the biblical warning: “God 
gave Noah the rainbow sign - 
no more water, the fire next 
time”. 

Harlem was then a ferment 
of political and artistic life. 
Baldwin sang a little and had a 
flirtation with Trotskylte poli- 
tics as an adjunct to a love 
affair Bat the uneasy aware- 
ness of his homosexuality, his 
evident preference for the com- 
pany of white schoolmates 
over black, and his appearance 
- bulging eyes and a mincing 
gait - kept Baldwin on the 
edge of Harlem life. Neither an 
athlete nor a brilliant scholar, 
he was headed for life as a 
storefront preacher or a minor 
hoodlum. It was the black art- 
ist Beauford Delaney who first 
Introduced him to the world of 
painters, musicians, writers 
and their white patrons. 

Leeming seems embarrassed 
by Baldwin's homosexuality, 
presumbahly because it fatally 
complicates his position as a 
spokesman for a community 
that is notoriously uneasy 
about what it considers to be 
deviant sexual behaviour. Bal- 
dwin was famously promiscu- 
ous, yet Leeming feds obliged 
to tell us several times that his 
relations with particular men 
were “platonic but profound". 
Baldwin’s alchoholism, his 
chronic self-pity and his feeble 
atte mp ts at suicide are equally 
glossed over. 

But it is the failure to tackle 
the issue of Baldwin’s authen- 
ticity that is most disappoint- 


ing bare. Baldwin never really 
mixed with black people except 
as a celebrity or perhaps as a 
kind of tourist Moat of his stu- 
dents were white, as were his 
closest friends. He was greeted 
coolly by Martin Luther King, 
who distrusted his dilettantism 
and dishked bis explicit deple- 
tion of homosexuality in 
Another Country. Richard 
Wright, the activist author of 
the classic Native Son. engaged 
in a lifelong argument with 
Baldwin about “protest writ- 
ing"; Wright thought of Bal- 
dwin as a pretentious copout 
The greatest of black American 
poets, Langston Hughes, 
accused Baldwin of confusion, 
saying his “viewpoints are half 
American, half Afro-American, 
incompletely fused". 

Baldwin’s contribution to 
civil rights was in making 
whites feel guilty. At dinner 
parties he would harangue 

JAMES BALDWIN: A 
BIOGRAPHY 
by David Leeming 

Michael Joseph £20. 443 pages 

them about their racism, then 
‘ invite himself to their country 
homes. He would whinge that 
a “gifted man... is burdened 
with his gift," And he would 
shout at whites even on first 
meeting, “where were you 
when Martin died?" This was 
all the more ironic since Bal- 
dwin himself contrived to be 
somewhere else when the bat- 
tle was at its hottest 

America seined to offer him 
little scope as a writer and he 
fled to Paris in 1948 - the first 
of several such excursions 
which continued until 1971 
when he finally settled in the 
South of France. So when Rosa 
Paris triggered the Montgom- 
ery bus boycott by refusing to 
move to the back seats, Bal- 
dwin was in Paris. 

Later when the black radi- 
cals led by Stokely Carmichael 
took the initiative, leading to 
the rise of the armed militants 
in the Black Panther move- 
ment, he was in Turkey. When 
Malcolm X was shot, in the 
Audubon ballroom in New 
York, Baldwin was elsewhere. 

Leeming suggests that Bat 
d win’s remoteness from the 
struggle may have had some- 
thing to do with an artist’s sen- 
sibility. Asked by Marlon 
Brando to attend a protest 
meeting he refused, saying he 
was “emotionally unable" to 
come. Norman Mailer assessed 
Mm as “too charming to be 
major”. In the end, even his 
considerable mastery of lan- 
guage let him down. His last 
two books were all but unread- 
able. He died, as ever, away 
from the action in the South of 
France in 1987. 

M Trevor PhOHps is head of cur- 
rent affairs at London Weekend 
Television 


THRIVING ON CHAOS 


A revolutionary 
new direction 
in management 


BOOKS 


White man’s 
black hero 

Trevor Phillips on a flawed view of 
a controversial American writer 



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From ‘Censored’, Tom Dews Mathews’ survey of Bra censor ship In Brftafci from ttflS to today fSMto £ Wtxkn, C14M paperback, 298 Oases}. 

Partisans of the pitch 

Behind every kick Peter Aspden finds raging debates on nationhood 

S port, as the waning “staid” compatriots - more It is no great surprise that and his fellow non-travellei 
weeks will remind than 60 per cent of the popula- Kuper finds the most skilful had to content themselves wit 
us, is of the last tion - parade round the streets football (as well as another clandestine monthly meeting 
refuges of the knee- to celebrate the nation’s 2~i extemporising anthropologist) of the “Hertha Society” in th 
jerk, politically inoor- victory over West Germany in in Brazil. “When our national back rooms of cafes. 




S port, as the coming 
weeks will remind 
us, is one of the last 
refuges of the knee- 
jerk, politically incor- 
rect national labelling which 
used to be the staple of TV 
sitcoms and post-prandial dis- 
cussions in any gentleman’s 
dub of your choice. In no other 
field of activity can one get 
away with references to lan- 
guid Africans, jumpy Italians, 
cynical Uruguayans and those 
determined, never-say-die Ger- 
mans who will keep spoiling 
tiie carnival. Yet where would 
today’s football commentator 
be without access to this price- 
less database of cheap stereo- 
types? 

Simon Kuper’s perceptive 
and highly entertaining 
account of his travels round 
the soccer world puts some of 
these fervently-held beliefs 
about national behaviour to 
the test, and finds that behind 
every kick of a football, there 
I Res a raging existential debate 
on citizenship and nationhood. 

Bill Shankly’s pallid apho- 
rism an life, death and Pel6‘s 
beautiful game would find 
some unlikely followers aimi ng 
Super's animated cast of char- 
acters: there Is Professor Dr L. 
de Jong, sober historian of the 
Netherlands during the «» ymd 
world war, happily admitting 
to dancing round the room 
when the Dutch side score; on 
a summer night in 1988, he 
watched nine million of his 


“staid” compatriots - more 
than 60 per cent of the popula- 
tion- parade round the streets 
to celebrate the nation’s 2-1 
victory over West Germany in 
a European Championship 
semi-final In the centre of 
Amsterdam, hikes were thrown 
into the air in symbolic 
revenge for the theft, during 
the Occupation, of all the city’s 
cycles by the German army. 
After the match, the Dutch 
captain. Ronald Koeman, 
admitted to using his oppo- 
nent's swapped shirt as toilet 
paper; the beautiful game, 
indeed. 

Travelling to Africa, Kuper 
meets Professor Paul Nkwi, a 
Cameroonian anthropologist, 
who floats his theory that 
Anglophone Africans are much 
more likely to succeed in Euro- 
pean clubs than their Franco- 
phone counterparts as they are 
more used to the overt racism 
of British colonisation and 
have not been deceived by the 
French rhetoric of equality. 
Less sophisticated analysts 
argue that the raw talent of 
home-grown stars is dissipated 
in the wealthy North by the 
over-emphasis on organisation. 
The country, in the meantime, 
continues to bask bizarrely In 
file glories of Italia ’90; a rare 
clothes emporium in Yaounde 
is called “Bobby Robson” after 
the man who engineered - 
well, stood on the sidelines and 
watched - their exit from the 
tournament. 


It is no great surprise that 
Kuper finds the most skilful 
football (as well as another 
extemporising anthropologist) 
in Brazfl. “When our national 
team plays, we fed that the 
identity of our country is bring 
played out on the field. Our 
values are being shown to the 
world,” theorises his reflective 
academic, Luis Eduardo 
Soares. While Graham Taylor 
waits until he can look another 
turnip in the eye, he may do 
well to ruminate cm toe fate of 

FOOTBALL AGAINST - 
THE ENEMY 
by Simon Kuper 

Orion £14.99, 223 pages 

some of his Brazilian counter- 
parts: Claudio Coutinho, for 
example, whose effigy was 
burned by fans on the very day 
Brasil reached the second 
round of the 1978 World Cup, 
for playing sacreligiously bor- 
ingfbotbalL 

Kuper’s most extraordinary 
encounter is with a fan; a very 
serious fan indeed. Helmut 
Klopfleisch was a 13-year-old 
supporter of Hertha Berlin 
wien the Wall went up and 
separated him from his beloved 
team. At first, he joined a 
group of East Berlin Hertha 
fans next to the wall, listening 
to, and echoing, the cheers 
from across the great divide. 
But when the club moved west- 
wards and out of earshot, be 


and his fellow non-travellers 
had to content themselves with 
clandestine monthly meetings 
of the “Hertha Society” in the 
bade rooms of cafes. 

Soon, the boundaries 
between supporting a Western 
team in the East ami becoming 
an outright political dissident 
became irrevocably blurred. 
Klopfleisch’s activities 
attracted the attentions of the 
StasL who opened a file. 
“(Klopfieisch’s) family tries to 
use all opportunities to experi- 
ence Bundesliga teams live,” it 
warned ominously. Klopfleisch, 
resentful and more subversive 
by the day, began to extend his 
support for any Western dub 
playing in the Eastern bloc; 
“K. possesses a politically 
labile stance * countered the 
file. Friendly “discussions” 
soon turned into arrests; once, 
for presenting a toy Berlin 
bear to a bemused Franz Beck- 
enbauer. and again, for send- 
inga good-lock telegram to the 
West German team. 

Klopfleisch was allowed to 
emigrate in 1989. Months later, 
the Wall came down. He now 
watches Hertha. but with half 
the passion he felt during his 
years of ostraefeatfon. It is a 
sad, grey story, a million miles 
from the screaming colours of 
Rio or the ticker-tape snowfalls 
of Buenos Aires, and on a dif- 
ferent planet altogether from 
the commercial frenzy of the 
next four weeks; a football 
story, nonetheless. 


I t tunas out to have been a 
well-kept secret But few 
who know her well doubt 
that Rebecca Stephens 
has a fr ^naring tale to tell of 

how a beautiful upper-middle 

class po lish woman became 
the first Briton of her gender 
to make it to the top of the 
world's highest mountain. 

With few big climbs under 
her belt she is disarmingly 
frank about her lade of clim- 
bing experience. Dp to the very 
moment of her Everest tri- 
umph with the aid of bottled 
oxygen on May 17 1993, two 
Sherpas at her side, she does 
little to h id e her reliance on 
other team members - an act 
of humility of which the aver- 
age macho naip mountaineer 
would be incapable. 

But for most of the book she 
is less forthright. There-is no 
mention of the startling fact 
that the famous picture of her 
on the of Everest with 

her two Sherpa colleagues was 
in part a fabrication. Virtually 
every newspaper published it 
but that flag - with the care- 
fully dtUaeated initials of her 
main sponsor, DHL, flying 
from her ice-axe - was taken 
not at 29,028 feet but at ground 
level, and patched in after- 
wards in England. As one of 
her Everest expedition col- 
leagues put it later. “To some 
extent you can sell your soul to 
you r sponsors.” 

In a sport traditionally asso- 
ciated with amateurism the 
issue has become even more 
controversial since last 
autumn's phenomenal increase 
in peak fees charged by the 
Nepalese government The 
result has been that Everest by 
the traditional South Col route 
has become almost exclusively 
the preserve of commercial 
expeditions who charge their 
clients up to $85,000 per person 
for the privilege of being 
guided up. When Stephens 
launched her attempt by toe 
same route in spring 1993 the 
writing was already on too 
wall; some 85 people climbed 
the mountain in the five weeks 
prior to her ascent, 13 of them 
women. 

It would be churlish to fault 
the author for her derision not 
to elaborate on her sometimes 
stormy romantic relationship 
with the colourful and often 
controversial. John Barry, 
leader of the 16-perwn expedi- 
tion that put her on top of 
Everest. But one longs for a 
detailed description of her 
more unusual team members. 
Where, for example, is the por- 
trait of the acerbic and power- 
ful Bill Barter - a man central 
to the history of the still 
unclimbed North East ridge of 
Everest - and where the trie of 
Joe Smith, who missed his 
flight in Moscow and spent 
three days trying to get out of 
Llubianka prison to join his 
fellow climbers on the expedi- 
tion? 

Indeed the central dramatic 
moment of the DHL Everest 
expedition - Harry Taylor’s 
axygenless ascent on May 10 
and his epic struggle to stay 
alive afterwards - is given sur- 
prisingly short space. There is 
hardly a quote from this highly 
regarded former member of the 
SAS who nearly died just a few 
hundred yards above Stephens’ 




Rebecca Stephens on top of Mount Everest - and that flag 


A lan Masrie in The 
Ragged Lion says: 
“Novelists after all 
are bars. We seek to 
persuade our readers that an 
imaginar y event has the force 
and significance of the real 
world...”; or rather he puts 
those words into the mouth of 
Sir Walter Scot! 

Massie is himself a liar in 
the above sense because he 
pretends to have discovered a 
lost manuscript by Scott that 
he is transcribing from a faded 
parchment He confesses to a 
measure of scepticism about 
the authenticity of this manu- 
script now to be made public 
for the first tune. It reached 
him (be says) from an Italian 
contessa to whom he gave 
English conversation lessons 
in Naples in 1964. She in turn 
is supposed to have inherited it 
from her great-grandmother 
who had an extra- marital affair 
with Scott's son Charles, its 
first owner. 

Massie gets around the main 


Fiction/ Anthony Curtis 

History with a pinch 


stumbling-block to his strategy 
by suggesting that when Lock- 
hart came to write his life of 
Scott he used the original of 
this manuscript but suppressed 
those parts of it he considered 
discreditable to Scott, and then 
destroyed it. unaware of the 
copy. 

Here, then, is an unauthor- 
ised life of toe laird of Abbots- 
ford by a modem Scottish nov- 
elist of great distinction. It is a 
quietly enjoyable read. Massie 
is outstanding for his use of 
fiction as a commentary on 
history and contemporary soci- 
ety. His novel about Vichy 
France was called A Question 
of Loyalties, which would do 
just as wen as a title here. 

Massie presents a stalwart 


THE RAGGED LION 
by Alan Massie 

Hutchinson £75.99. 240 pages 

OLIVER’S TRAVELS 

by Alan Plater 

Utile, Brown £15.99. 315 pages 


Scottish patriot who had a 
catch in the throat when he 
sprite of the Tifteen and the 
Torty-Rve, yet has a similar 
fierce pride in arranging the 
ceremonial for the royal visit 
to Scotland of 1822. Scott 
comes across as a bom Tory 
with many Whig friends and 
attitudes; a lawyer who 
became a poet - a rhymester 


and baliadeer who invented 
the historical prose novel - to 
mention but a few of the con- 
tradictory loyalties Massie 
uncovers. He delights in toe 
pride Scott took in administer- 
ing his own huge estate, his 
sense of creating a truly hier- 
archical c ommuni ty there. If 
Border Country was Scott's 
location it is also Massie’s. who 
since 1982 has Hved six miles 
away front Abbotsford. 

The novel is scant of plot, 
but is correspondingly strong 
' on ideas. Hubris comes when 
Scott lost his entire fortune in 
the collapse of the Ballaatyne 
printing works in which he 
had invested heavily. Massie 
shows him recalling the intri- 
cacies of disaster ami Ins 


of salt 


recovery from it More original 
is a supernatural strand that 
Massie weaves into the tapes- 
try involving a ghostly mani- 
festation in a murky dose in 
Edinburgh Old Town where 
the hero suffers remorse for 
his past in a head-on confron- 
tation with a childhood phan- 
tom. 

Alan Plato- was bom in Hull 
and made his name a quarter 

of a century ago with his script 

Close the coalhouse door. It was 
a lively entertainment that 
unfolded the troubled 
history of the North Eastm 
the Joan Littlewood musical 
style. 

Since then Plater has had 
dozens more successful scripts 
and novels to his credit. His 





and Barry's tent on the South 
Col bringing her first summit 
attempt to n fearful and abrupt 
end. Nor Is there a mention by 
name or nationality of the two 
heroic but angry Basques who 
left their own tent that night 
to drag the blind, frost-bitten 
climber down to a perilous 
kind of safety at 28JM0 feet 
Less than a week later our 
heroine’s own defining, 
moment - the debate over 
whether she should make a 
second summit attempt or not 
- is described In a way that is 
a model of diplomacy and pos- 
sibly naivety. With the 
weather looking threatening 
and her climbing partner out 
of action because of his efforts 
to rescue Harry Taylor, all but 
John Barry argued strongly in 
private that she should 
descend - a fact of which she 
seems to haw been unaware. 
That she chose instead to go 
bock up is history and true tas- 

ON TOP OF THE 
WORLD 

by Rebecca Stephens 

MacMillan £14. W. pages 

BEYOND THE LIMITS 

by Stacy Allison with 

Peter Carlin 

Uttlc. Sr , ms fttW 21C pages 

Lament to Rebecca Stephen’s 
courage and tenacity. 

Although twice in her 
account she refers to coarse 
remarks suggesting she had no 
chance of succeeding, she gives 
tittle or no space to discussion 
of “the woman's role” in the 
highly masculine world of 
Himalayan mountaineering. 
One suspects that for Stephens 
feminism is not an issue. And 
there is certainly no 
soul-searching about the 
nature of mountaineering or 
the universe for her. 

In sharp contrast Stacy Alli- 
son reveals all you ever 
wanted to know and more in 
her enthralling account of toe 
first American female ascent of 
Everest in 1988. She bares her 
soul, her life, her climbs and 
loves, as perhaps only an 
American could. 

to occasionally embarrassing 
detail she gives ua an account 
of a life, seemingly one tong 
battle between the sexes, on 
and off the mountain. 

She tells of toe blond god 
Scott Fisher; Sue “killer” 
Gifler. toe macho maiden; of 
how her own mother was des- 
erted by her drunken father; 
how her husband beat her up; 
and how she manoeuvred to 
beat her female colleague to 
get to the top of Everest Bret. 

She tells too of how a French 
expedition hurled Its dead 
sherpa off Everest in front of 
her; and how she combatted 
the expedition leader’s chau- 
vinistic half-truths after the 
climb. And top place goes to 
her pride in her achievement 
of becoming a woman house- 
builder. Interspersed with all 
this is a bravura discussion of 
the philosophy of mountaineer- 
ing. 

For climbers, feminists, psy- 
chologists and others this is a 
must read. 

Richard Cowper 


{Jest picaresque novel Oliver's 
Travel’s follows a former uni- 
versity lecturer with 0 passion 
for anagrams moving around 
Britain on the trail of some 
very unsavoury operators, and 
partnered by a policewoman 
suspended from duty. Their 
happy plight is clearly mod- 

2EL2. th f. wlr handcuffed 

togete in Hitchcock's Thirty- 
Nine Steps movie (the earliest 

rersmn) The text fa both stiff 
with wisecracks and soggy 
wth nostalgia but in spite of 

th!? 2 S >r *W a hfs sh °w on 
the road and leaves us in no 

doubt of his disgust at the cur- 
rent state of the nation. 

publish your worn 

conoid*: a 

UgBaa* 







FINANCIAL TIMES WEEKEND JUNE 18/JUNE 19 1994 


WEEKEND FT XXIII 


TELEVISION 


SATURDAY 


BBC1 


7.23 Nowak. 730 Fata the CaL 7M Joe 9a 010 
Tt» Looond of Pitnea VafiaM. 836 Rorarf fee 
TWteL MO RaraM 0. 10fa WooOnr. 

1 0 M Grandstand. Introduced by Bob 
WDsoa 11.00 Cricket Second Test 
England v New Zealand 1.00 News. 
1.05 Football Focus: World Cup 
news. 1 JO Tennis: The finals of the 
Volkswagen Cup. 1J5 Racing from 
Ascot The 2.00 Rite Cfi*j Fern HM 
Rated States. 2JJ5Termte and 
Cricket 2.25 Rating: The 030 Abe- 
marie Hancflcap Stakes. 235 Tennis 
and CrickeL 2.55 Rating: The 3.00 
Ladbmke Hantficap Stakes. 3.05 
Tennis and Cricket 3 50 Racing: 

The 3.35 Churchifl CondWons 

Stakes. 3^0 Tennis end Cricket 
420 World Cup *94: Live coverage 
of USA v Switzerland from the Pon- 
tiac S&uerdome ki Detroit 820 
News Round-Up. Thnee may vary. 


040 Regional News and Sport 

MB Pop Quiz. Kenny Thomas, Rfck Par- 
tittand Kim Appleby pit their wtta 
against Kefly Overett, Francis Rossi 

and Stuart Adamson in the music 
game. 

7.16 Wt the (toad. Celebrity guests Judj 
Spiers, Bab CaroJgees. Yvette Field- 
ing, Nefl Fox. tan St John and Gor- 
don Kennedy visit Scotland to 
undertake a hoet of bizarre teaks. 

7.88 The Pad Daniels Magic Show. 
Mystery and Huston, including a 
demonstration of kinetic energy and 
a cteplsy of gunsOngfng skBb from 
Bob and Becky Minden. Last in 
series. 

MB Fftn: Days of Thunder. Rating car 
drama, starring Tom Cruise as an 
arrogant young driver out to seize 
the champion's crown. With Robert 
Duval and Nicole Kidman (1990). 

1CL2S News and Sport Weather. 

1046 Wax Uncut The uncensored version 
of Ruby Wax's interview with Holy- 
wood actor Bffly CrystaL 

11.10 Cricket Second Test Bigland v 
New Zealand Today's play from 
Lord’s. 

1145 World Cup Grand sta nd. Colombia 
v Romania. Uve coverage from the 
Rose Bowl, Pasadena. The enig- 
matic South Americans meet tin 
tempera me nt a l east Europeans, last- 
gasp conquerors of Wales in the 
quafiftars. Plus, fugHfgftts of 
Ireland's ffrst game against Italy, and 
USA v Switzerland. 

840 Weather. 

2.38 Ctaea. 


BBC2 


000 Open UnSwaity. 12.16 pm Burke's Backyrad. 

1.10 Time with Betjeman. The former 
Poet Laureate recalls his father, and 
cfiscusses subjects ranging from 
Francis KBvecfs diaries to the archi- 
tecture of East Anglian churches. 
Last in aeries. 

2.08 The 7th Eurovision Competition 
for Young Musicians. Humphrey 
Burton Introduces the proceedings 
as the eight entrants, chosen from 
24 Bjropovi nations including Croa- 
tia. Macedonia and Slovenia, com- 
pete In the Anal from the 
PM h armonlc Concert Hal In War- 
saw. 

4.15 Cricket: Second Test. Engtaid v 
New Zealand. Father live coverage 
of the third day. Su b seq u ent pro- 
grammes may run late. 

MO Standing Room Only. Simon 

O'Brien and England star &aeme La 
Saux present a World Cup special, 
taking a behind-the-scenes look at 
the most popular of al international 
sports. 

7X16 Scrutiny. Anne Peridns investigates 
the rise in radatty motivated attacks, 
which have doubled In England and 
Wales over the past five years, and 
asks what can be done to reverse 
tiria dteturting trend. 

745 News and Sport; Weather. 

740 BBC Design Awards. Muriel Gray 
and a panel of experts visit Japan, 
Spain and locations throughout the 
UK to choose five outstandfog 
examples of Brfosh architecture. 

Last In aeries. 

840 Goto US Open. Steve Rider intro- 
duces five coverage of the third 
round from Otionont, Pennsylvania. 
Commentary by Peter Aflisa, Alex 
Hay and Dave Mar. 

11.10 SefritefiL Jerry is Intrigued when a 
mystery woman lesvBs a sexy mes- 
sage on a tape recordkig of his 
show, and sets out to discover the 
culprit's identity. 

1140 Washington Behfrid Cl o n ed Doors. 
CIA boss WBSam Martin has a 
showdown with President Mondrian 
and propose s a cynical deal to 
ensure the survival erf both their 
careers. Last in series. 

140 does. 


640 OfuTTV. 023 Qtane 5. 1U0 The ITV Chert 

Shoe. 1230 pm Opening Shot. 

1.00 fTN News; Weather. 

145 London Today; Weather. 

1.10 NBA BsskefbalL 

2.00 I nte r na tional Rugby Union. High- 
lights of Fiji v Wales, plus analysis of 
the fcxx home nations' performances 
on their summer travels. 

340 Movies, Ganns and Videos. 
Reviews of new drama release 
Angle, starring Geena Davis and 
Stephen Rea. and the recant crop of 
fbctbaB-ortentated games. 

340 Cartoon Tima. 

845 Murder, She Wrote. 

445 ITN News; Weather. 

540 London Today; W eather. 

0.15 Buftseye. Jim Bowen asks the ques- 
tions and guest Ronnie Baxter 
throws for charity in the darts-based 
quiz. 

545 Baywatch. 

040 Stars In Their Eyas. 

745 The Brian Conley Show. Veteran 
American rocker AOce Cooper joins 
Brian Conley for another edition of 
the comedy and muete showcase. 
Last in series. 

8.10 You’ve Been Framed. 

840 World Cup ’94. Italy v Ireland from 
Sants Stadium In New York, pks 
hlghflghts of the USA’s dash with 
Switzerland in Detroit Presented by 
Matthew Lorenzo, with commentary 
by Brian Moore and Ron Atkinson. 

1145 mi News; Weather. 

11.15 London Weather. 

1140 Tour of Duty. 


CHANNEL4 


000 4-Tfl on View. 035 Early Mcrrtng. 1000 
Trane World Sport. lljDO Geetc Gems. 1230 Sian 
Ore Yaw Views. 1230 pm Peoria First 

140 Fins The Divorce of Lady X. A 
nobleman's daughter wins a stuffy 
lawyer's heart by posing as a efrvor- ' 
cee. British screwbafl comedy, star- 
ring Laurence OtMer (1938). 

240 FBm: The Dark AngeL A first world 
war officer hides the fad that he has 
been bunded fn combe! and tries to 
ensure his fiancee's happfoess by 
pereuadbig her to many another 
man. Frederic March stars (1935). 


REGIONS 


nrv REGIONS AS LONDON EXCEPT AT Ttffi 
FOLLOWING TB6E&- 


1230 Movies. Games end Videos. 135 Angfia 
News. 1.10 Cartoon Tima: 130 Mgri Mansers 
todyCra *04. 000 The Greatest American Hero. 
(TVM 1981) 000 Angle Maws end Sport 1130 
Anglo Weather. 1135 Vengeance: The Story of 
Tory Cfrro. [TVM 1988) 


1230 Moviea, Games ml Videos. 130 Border 
Harm. 1.10 Rocksport. 130 Mgri Mansers tody- 
Car -9*. 000 Hera (1B8S) 435 Cartoon. 455 
Border News and Weather 005 Cartoon Tina. 
1139 Vengeance : The Stay of Tony Qnu. (TVM 

1988) 


Rang. Animation. 

645 Brookskkr, News Stenmary. 

540 B8nd Twins- Him following the 

everyday problems faced by two 40- 
year-dd bfeid brothers forced to 
look after themselves when their 
mother fells Ifl. 

740 Beyond the Pale. Plot episode. 
StucBo decuman In which a 40- 
strong audience from a range of 
backgrounds debates the week’s 
mein i 


1230 Amedeo's Top 10 135 Central Nows 1.10 
Movies. Games and Videos. 1.40 Ro cta port. 000 
WCW WortdMde WrestBr®. 050 MaoGyvsr. 530 
Central Mews 535 Cartoon Tima 11.15 Local 
Weather. 1130 Puppet on a Chain. (1970) 


1230 HertL 136 Channel Mary. 030 Npe) Man- 
seTB IndyCar W. 030 The A-Taam. 430 Cartoon 
Time. 530 Channel News. 535 Prion’s PWfflee. 
010 Cartoon Time. 1130 Til. 0978) 


1230 Crrime Ce 135 Gramptan HeaeSnea 1.10 
TelaSos. 13 Roc k sport. 330 Npel Manser* Indy- 
Car *94. 030 Adventure. 430 Superstars of Wres- 
ting. 630 Grampian Headttnas S35 Grampian 
Nows Review. 1130 Grampian Weather. 113S 
Vnngeenrn- The Story of Tony Omo. (TVM 1088 ) 


840 The Sexual Imperative. What fac- 
tors determine the number of off- 
spring In a litter, and why some 
animate are immediately indepen- 
dent from birth. 

0.00 NYPD Blue. The squad investigates 
the murder of a priest whose body 
b found In a notorious haunt of mate 
prostitutes. Sfoowicz re-opens an 
oJd case. Last In series. 

1040 The Unpleasant World of Perm 

and Te*er. Another chance to enjoy 
macabre Hustons by the cult Ameri- 
can duo. With Dawn French. 

1040 Fffrre Cold Comfort A psychotic 
truck driver kidnaps a businessman 
as a birthday present for his 16 - 
yeor-okl daughter. Bczane thriller, 
wtih Mauy Chaykki (1989). 


1230 Movies, Gants and Videos. 135 Granada 
News 1-10 Rocksport- 130 Mgri Mosers IndyCar 
‘04. 330 Hoa (1066) 43S Cartoon Tima 435 
Granada News 530 Cartoon Tima 1135 Ven- 
geance: The Story of Tory Ckna (TVM 1966) 
KTV-. 

1230 World Cup Hal ri Fame. 136 HIV News. 
1.10 Mgri Masrii IndyCar '94. 130 Cartoon 
Tima 330 Harris Down Under. (TVM 1968) SOQ 
HTV News. 535 Cartoon Tima 1130 HTV Weather. 
1135 Vengeance: The Story ol Tony Omo. (TVM 
1088) 

1230 Hekf. 135 Mokfian News. 000 Mgri Man- 
sers MyCar ’04. 030 The A-Teem. 430 Cartoon 
Tima 630 Meridian News. 5.10 Cartoon Tima 
1130 TK. (1978) 


BBC1 


30 Johnson and Friends 7 AO Ptaydeys 830 
*ng Talas. 015 BnriMast wUt Frost 015 Faith 
- Faith. 030 This to (he Day. 1030 See Heart 
126 Computing for the Lass Tended. 1036 
rteket Second Test Weather lor the Week Aherai. 


045 


240 


Cricket: Second TeoL England v 
New Zealand. Coverage of the 
fourth day's play from Lord's; 
Weather for tha Week Ahead. 


845 On the Record. 

1.30 EastEndare. 

LOO FSm: Parry Mason: The Casa of 
the Posthumous Pakder. The 
sleuthing attorney b drawn Info a 
world of deception and fraud wttito 
Investigating the murder of a wealthy 
artist Whodimntt, staring Raymond 
Burr (1992). 

Bffoba ck . 

3ml Rx ft A 12-year-aid London 
pianist obsessed with Mozart visits 
hb idol's former home In Vienna and 
gets to play one of the groat com- 
poser's places. 

Masterehef. Robert Carrier and Sue 
Lawtey Judge the cdfrwy efforts of 
conte stants from Camb rtdg sthfrs. 
Lancashire aid Edinburgh. 

V08 

135 


080 

1000 


340 


740 

740 


140 


L40 

L56 

L25 


40 


40 


Sweet inspiration. Tarry Waite talks 
to Alan Thchmafah about hb chBd- 
hood, ncarceratkxi tn Beirut and 
subsequent return to Entfbnd. 

Last of the Summer Wine. 

That's Life A* Overi Esther Rantzen 
te Joined by specid guests Wet Wet 
Wet and Victoria Wood for the final 
edition of the consumer programme, 
In which she reflects on Bs 21-year 
history end presents updated infor- 
mation on some of the main cam- 
paigns- 

Love on a Branch Line. Jasper's 
assignment b put on hold whan 
Lord Ramborough’s tinea promiscu- 
ous daughter begin vying for hb 
attention. Mchaol Maloney and Gra- 
ham Crowden star. 

News and Weather. 

Mastermind 

Heart of the Matter. Joen BakaweB 
examines attempts to eradicate 
radal hatred, and reports from Bos- 
ton on how severe penalties are 
proving effective in reducing race- 
retated crime. 

Cricket: Second Tost England v 
New Zealand. Highlights of the 
fourth day's play. 

World Cup Grandstand. Cameroon 
v Sweden. 

Weather. 

Clooe. 


BBC2 


016 Open University. 01O Rddtoy FtxxJe Bird. 

02S Space Vote 040 Revri*s American Trias. 

1035 The Mode Gama 1030 Omega H0 1055 

POT. 1130 WMto Fang. 1136 The O Zona 1000 

Around W ralu ineter. 

1240 Sunday Grand stan d. Introduced by 
Sue Baker. 1245 Cricket Second 
Test England v New Zeeland. 1.05 
T oo tba l Focus: World Cip preview. 
1.15 Motor Sport The British Tore- 
fog Car Champlonshipi 1.40 Cricket 
3.40 Tennis: A look ahead to 
Wimbledon ‘94. 4.00 Cricket 640 
Tennis. Times may vary. Subsequent 
programmes may run fete. 

740 Beechvratch. Howard Stabtofrxd 
Introduces NghBghts from last 
week's five titans taking a dose-up 
look at the everyday activities of Ihe 
buetfing seel and tern colonies 
Inhabiting a stretch of the north Nor- 
tafc coast With Chris Packharo. 
ShaBa Anderson, Martha Holmes 
and Simon King. 

740 The Bloke Next Door. ChanceRor 
Kenneth Clarke, the man hotly 
tipped by some observers to 
become the next Conservative prime 
minister, talcs candidly about hb 
file, beliefs. femBy and csreer ambi- 
tions. in a rare informal interview, he 
also revels W s love of jazz. beer. 
btadwatcWng and football, and 
recata past ministerial baffles which 
have earned htan a reputation as a 
tough poBtica) opponent and eco- 
nomic poBcy-matar, unffinchlng 
even when forced to Introduce the 
biggest tax increases this century. 

040 Goth US Open. Steve Rider Intro- 
duces Bve coverage of the final 
round from Oakmont, Pannsyivanfa, 
as Europe's leading players continue 
their attempt to break the trartitional 
American stranglehold on the tour- 
nament. and mete a bid for the sec- 
ond major of 1994. Commentary by 
Peter Alfes, Alex Hay and Dave 
Man. Subeequertf pro g ramme s may 
runlets. 

11.10 Mo vfe d romo . Introduction to 
tonight's cult titan. 

1140 Roe The Harder They Come. 
Jimmy CUff stars In tWs Jamaican 
drama as a country boy who gate 
Involved In crime whan he travels to 
Kingston in search of reggae star- 
dom. with Cart Bradshaw (1973). 

1.05 dooo. 


1015 The Big E. 

1000 Late Licence. 

1.18 Get Stuffed; fTN News HMdkM. 

1010 Hannan's Head. 

130 Gaz Tap Non Stop. 

1040 Just for Laughs. 

030 New Music. 

1.18 Naked City. 

020 Get Stuffed; ITN News Headlines. 

0OO Stereo MCte Connected. 

028 Cinema, Cinema, Cinema. 

3.00 Beevfsand Butt-Head. 

088 BPM; Mgtt Shift. 

030 True or False. 

530 Hot Wheels. 

4j 00 Close. 

SUNDAY 

LWT | 

| CHANNEL4 | 


1230 The Champtofts, 135 Scotland Today. 1.10 
Totofloe 130 Cartoon Tima 340 Mlae to Ga 
(1988) 530 Scotland Totter 010 Cartoon Tima 
11.15 Scottah Weather. 11 2D Day of Terror, MgM 
of Fear. (1978) 
tyme reesc 

1230 Movies, Gamas and Vkfcxa. 138 Tyne Tees 
Non. 1.10 The Munstere Today. 135 Zbno. 000 
Condonmn. (1901) 055 Tyne T Me Saturday 5.10 
Cartoon Tima 1130 The TIM Who Came to 
Dinner. (1973) 


1030 Movies. Grows and Videos. 135 Wosicoun- 
try News. 000 Mgri ManeriTs tedyCtr -94. 430 
The A-Teem. 53D Wafr-nirtry New. 1135 Vro- 
: The Story of Tony Omo. (TVM 1888) 


1230 Movies. Grows and Videos. 135 Crirodfrr 
Newa 1.10 The Mrostera Today. 136 Zone. 330 
Condorman. (1981) 435 Calendar Newa 5.10 Cer- 
loon Tima 1130 The Thief Who Came to Dinner. 
(T973) 


000 GMTV. 935 Tha UtOeM Hobo. 10.16 Unk. 

1030 Sroday. 1130 Mon*v Worship. 1000 Su>- 

day. 1230 pm Ctoaririk; London Waatoer. 

140 mi News; W e t her. 

1.10 The Judy Hnnlgen Debate. 

240 The Enter tain ers. Tribute to Bom 
Free star B5 Travers. 

240 Fterc The Rret of the Few. Biogra- 
phical account of R J. MtcheO, the 
men who foresaw the com i ng of the 
second world war and developed 
the Spitfire aeroplane. LesSe Howard 
and David Niven star (1942). 

448 H i ghwa y to Heaven. 

540 The London Programme. The cSs- 
. tubing number of cound tenants 
who die in their homes but remain 
undtecovered for long periods of 
lima 

040 London Tortight; Weather. 

840 ITN News: Weather. 

640 Through the Kayhote. 

740 Mother's Rida. 

740 Surprise! Surprise! 

840 CadfaeLThe metfieval sleuth Inves- 
tigates when a wealthy landowner is 
found murdered shortly after tfisin- 
herrting his son. Derek Jacobi stars. 
Last in series. 

1040 The House of Windsor. The 
Buckingham Palace staff are 
shocked by startting revelations bi a 
new book about the Royal FamBy. 
Comedy, stoning LesSe Phflfips and 
Warren Cbrka. 

1040 ITN News: Weather. 

1040 London Weather. 

IDAS Around the World in 74 Days. 

Cameras folow the crew of the cat- 
amaran Enza, who battled against 
the elements to set a new record for 
drcumnavigBting the gtoba 

11.15 The Making of Dances with 
Wolves. Behind the scenes of the 
epic Western which scooped seven 
awards at the 1991 Oscars, tndud- 
ing Best Picture and Best Director. 

1145 The Restaurant Show. Bruce 
Burgess visits North Y Cheshire's 
Black BuN for, and Joins Loyd 
Grossman for lunch at Harvey 
Nteote. 

12.15 Married - With Cttikfren. 

1245 Cue the Music; fTN News 

Heed Bn e a . 

148 Rfrrc Royal Flash. Comedy, starring 
Matoofrn McDowell (1975). 

840 Snookon The Bvopaan L ea gue. 


RADIO 


010 Early Morning. 046 The Odyssey. 1016 
Saved by the Bet 1045 RewNcte. 11.45 Uttie 
Hauea an the (frairie. t04S pm Swf Potatoes 

1.15 FUm: The Best Yaora of Our Uvea 
Oscar-winning drama fofcwring three 
World War Two veterans as they try 
to pick up the pieces of their shat- 
tered fives. Fredric March and Myma 
Loy star (1946). 

430 Every Dog's Guide to Complete 
Home Safety. 

440 News Summary. 

445 HbiE The We s terner. A wandering 
cowboy becomes mixed up in a 
range war between cattlemen and 
homesteaders in 1880s Texas. WBd 
West advertise, starring Gary Coo- 
per and Walter Brennan (1940). 

640 The Coeby Show. 

7.00 Secret History: The Dambustere' 
Raid. In 1943 a squadron of Lan- 
caster bombers deployed Bemas 
Wafb's unique bouncing bomb to 
destrier two dams In northern Ger- 
many. as peri of a plan to cripple 
German industry by flooefing the 
Ruhr valley. The raid, tn which 53 
out of 133 airmen died, was Wtiafly 
heralded as one of the major Allied 
triumphs of the second world war, 
but in recent years historians have 
begin to question its strategic 
value. 

840 Speak Out Members of the pubkc 
present filmed reports on the ctsrent 
state of civil rights in Britain, investi- 
gating efforts by Nottingham council 
to curb crime on local housing 
estates by fosteffing security cam- 
eras, Batsing wtth the police and 
encouraging informers. Do such 
measures threaten civil Bberty and 
the basic freedom of the Indhriduaf? 

940 FBm: The Hustler. Oscar-winning 
melodrama, starring Paul Newman 
as a rSsSusSoned pool shark who 
regains ha self-respect after taking 
on a champion player (Jackie Glee- 
son). With George C Scott (1961). 

1140 Islamic Conversations. Syed 
FadaBah, a leading figure In the 
Lebanese Islamic Movement, cte- 
cusses the Moslem view of holy 
war. 

1240 FOrn: Anne Tristan A Jewish 

woman visits Quebec in an attempt 
to come to terms with the recent 
death of her father. Emotional 
drama, starring Afoane GulJhe and 
Louise Msieau (1986). (English sub- 
titles). 

13 


REGIONS 


nv REGIONS AS LONDON BX C5 PT AT TW 
ROLUO—O T— B,- 
AimiAt - 

025 The New Scoofay Doo Moviea 1035 Porky 
Pig. 1230 Countrywide. 1055 Ai^fa Newa 200 
Father Dowtng Investigates. 330 Earth Star Voy- 
ager. (TVM 1938) 530 Don't Ctap - Just ThiOw 
Money. 630 Anffita News on Sunday 1040 AngSa 
Weather. 1045 The Graduate. (1967) 

CENTRAL: 

935 The New Scooby Doo Movies. 1035 Porky 
Pig. 1230 Central Newsweek. 1256 Central News 
230 tta Your Shout. 235 Take 15. 250 Gaidenfog 
Tima 330 The Absent Landed professor. (1961) 
535 Cartoon Tme. 530 Murder. She Wrote. 015 
Ceram) News KUO Local Weathra. 1046 Mistress. 
(TVM 1087) 


935 The New Scooby Doo Movies. 1035 Porky 
Pig. 1130 Sunday Service. 114$ Bkon. 1230 
Gardener's Dory. 1255 Grampian Hea d fc iaa 230 
Return to Peyton Raca (1961) 430 Movies, Gamas 
and Videos. 450 World Cup Hsl of Fema 530 Tha 
A-Teom. 015 Grampian Haedbias 1040 Grampian 
Weetfter. 1045 A Lovely Way to Ga (198$ 
GfUUMDA: 

035 The New Scooby Doo Moviea 1035 Porky 
Pig. 1235 Grenade on Sunday. 1255 Granada 
News 230 Sfrmtmastera ZA5 Rdy Round tha Flag 
Soya (1968) 435 Mum's the Ward. 5.15 Corona- 
tion Street. 015 Granada News 1045 A Lovely 
Way to Ga (1968) 

mv: 

935 The New Scooby Doo Moviea 1035 Perky 
Pig. 1225 The Utttaet Hobo. 1055 HIV Newa 230 
HTV Newsvroek. 230 Highway to Heaven. 026 
Mirder One. (TVM 1969} 5.15 On V Ow Street 635 
Great Westerners. 015 HIV Newa 1040 HIV 
Weather. 10.45 A Lovely Way to Ga (196Q 

935 The New Scooby Doo Moviea 1036 Porky 
Pig. 1230 Seven Dsya 1250 Mericfcm Newa 200 
Ufe Goes On. 255 The Amaafog Captain Nemo. 
(1978) 545 Sunk®!. 015 Merttten Newa. 1045 
The South Baric Show. 1146 Hghweyman. 


935 The New Scooby Doo Merries. 1035 Porky 
Pig. 1130 Sunday Service. HAS Bkon. 1230 
Skrrosh. 1265 Scotland Today. 200 The A-Teem. 
330 The Great Escape. (1963) 8.15 Scotland Today 
030 Scottish Passport. 1040 Scottish Westhsr. 
1045 NS Cotmfry Music SpeciaL 1 146 The Uttfe 
Drummer Grt. (196q 


025 The New Scooby Doo Mottos- 1035 Porky 
Rg. 1235 Newsweek. 1235 Tyne Tees Newa 200 
World Cup Heroes rod VBafoa 330 Cany On 
Crukdng. (1962) 446 Cartoon. 435 Father DomfinQ 
fovsEttgales. 530 Tyne Tees Weekend. 1045 
Monte Walsh. (1970) 

WESTCOUNTRY: 

935 The New Scooby Doo Movies- 1036 Porky 
Pig. 1230 Westcourtiry Update. 1255 Wastoounfry 
Newa 230 The Baffle of Midway. (1978) 430 Brief 
Encauntera 430 Btoomfog Marvoflora. 530 Mur- 
der, She Wrote. 015 Westcoreary Newa 1046 A 
Lowly Way to Ga (1968) 


935 The New Scooby Doo Moviea 1035 Porky 
Pig. 1225 The Utilest Hobo. 1050 C a lend a r News. 
230 Wbdd Cup Heroes and VBafoa 830 Carry On 
Cntiefog (1962) 445 Cartoon. 435 Father Dowling 
Investigates. 530 Calendar News and Waalher 
1040 Local weather. 1045 Monts Walsh. (1970) 


SATURDAY 


SUNDAY 


C RADIO 2 

■ fitted Burnt. 835 Brian 
thaw. 1030 Jutfl Spier*. 
O Hayes on Saturday- 130 

Cent Hove One vtthout 
Other. 230 The GoWen 

■ of Radio. 000 Ronnie 
■L 430 Mining Movies - A 
» tar Sherlock Holme- 630 
< Bnrrsetough. 530 Bob 
was RsquMte the Piemura. 
> Cfoama 2. 730 The Spirt 
ngland. 930 DmM Jeooba 
C The Arts Programme. 
6 Ronnie Hittorv 1.00 Jon 
ga 430 Sqatn BoroL 


C IUUHO 8 

Open Urtvermy: Talking 
•4 Hie Errigh te n m en L 635 
ther. 730 Record Review. 
H ovt a ne ea , Brahma 
rvner, Scriabin, ftavaL 000 
ling a Lbnry. Handel's 
J In Egypt, by John Steona 
5 Record Release. Karin 
re, Gavin Btyara. Banacfict 
on, Mozart. 1200 Spirit of 
iga 130 Poetry fo Action. 
String Trioa 230 Margaret 
nrfiuL Suk. 000 GUtot Afi 
tod Tkna Vairfi. 630 Jazz 
« RequettL WWi 
«vySmHfL046MkrtC 
eta Pneented by Ivon 
etL 630 Chopfct. 7.10 13 
iGtrointera. Mozart's 
i-aa open. 1040 The 
<of OtgquM. Steve 
Hon rends from Fernando 
re's mostarpieca 1130 


fr npret Ml ona ftefite of the 
Crotfid WmL 1230 Ctoea 


BBC RADIO 4 

030 Newa 

010 The Framing Week. 

050 Prayer lor me Day- 
730 Today. 

530 Nova. 

005 Sport on 4. 

030 Breakaway. 

1030 Whatever Happonod To? 
1050 The Mestereon 

Mwrttanca 

1130FM)'me Wrekln 
WesbnfosMr. 

1130 0W) Test Metro Special. 
Cricket. 

1130 |FM) EtaopMB- 
1230 (FM) Money Bra. 

1225 (FM) rm Sony I Haven't 

uCtoa 

130 FM) Ns**. 

1.10 Any Questions? 

230 Any Answers? 071-580 
4444. Phone-ta response 
programme- 

230 (LW)To3t Metro SpetiaL 
230 (FSfl Playhouae: Seven 
Foot Wfto a Wooden Lag. By 

PoterKfoB- 

430 (FM) That's ftetoty. 

430 (FM) Science Now. 

000 (FhQ File on 4. 

5y40 (FM) The wordroba 
030 Newa and Sporte. 

S3S Week EntSnfl- 
050 The Locker Room. 

730 Katekfoecep* Fsnaa. 
730 Sohoday Mght Theatre: 
Hra Lfttle Pfoa Bf Agethe 


Christie. 

030 Murto fo Mnd. 

930 Ten to Ten. 

1030 Newa 
iais word Of Mouth. 
ia45SmMno fo Stroks etty. 
1130 The Un^e Factor. 

1130 The LerMn Letters - 
1941-1964. 

1200 Newa 

1233 SWppfog Forecast. 

1243 p=M) Ctoea 

1243 0WJ As Wortd Service. 

BBC RADIO 5 LIVE 

005 Orly Tackle. 

030 The Breakfast Pro^amma. 
930 Wert ra n d wtth Karahew 
end wmoker. 

1135 Special Assignment. 
1130 Crime Desk. 

1200 Midday fifflon. 

12.15 SportsceA 
134 Sport on Rva 
035 tan Botham Stx-O-St*. 
736 Sroaday Erttiea 
000 Wortd cup -94. 

1130 M^it Extra. 

1205 After Houa 
200 Up Al Night 


WOULD SERVICE 
BBC tor Europe can be 
na c rave d to we item Europe 
on Medium Wave 648 WZ 
(«3n) at (heee ones BST: 
630 Morgenmegezln. 090 
Euepe Today. 730 Wortd rod 
BMP) Newa 7.15 The Wortd 
Today. 730 Median. 830 


World Newa ai5 Wavegukto. 
625 Book Choieu. 830 People 
and ftoUoa 930 Wortd Newa 
030 Words of Faith. 015 A 
JoBy Good Show. 1030 Wortd 
News and Business Report. 
1015 Wortd Brief. 1030 
Demfopmenl 94. 1045 Sports 
Rowidup. 1130 mnterie Dm*. 

11.15 Letter from America. 
1130 BBC English. 1145 
Mitragsmagazin. 12.00 
Hewedeok. 1230 Meridian. 
130 Wbrid Nowa 130 Words 
of Ftfh. 1.16 MidtBracfc 0 143 
Sporte Roundup. 2.00 
Newehour. 3.00 News 
Summary; Spoiteworid. 430 
World Newa 4.15 BBC Engfch. 
430 Hetee A»N0 530 Wortd 
and British Newa. 5.15 
Spaiteworfd. 030 BBC &g8sh. 
630 Haute Aktuefl. 730 News 
and features fo German. 000 
Newe Summery; The Great 
Leveller. 035 From the 
Weekflea 000 World Newa 
939 Words of Faith. 016 
Deveiopmera S4. 930 MertSan. 
1000 Nawahour. 1130 World 
Newa 1135 Words of Faith. 
11-10 Book Choice. 11.15 Jazz 
tor the Asfcfog. 1145 
Ftorodup. 1230 Nt 
020 Tha MuricteTs Musfcfen. 
130 wortd rod British Nm 

1.15 Good Books. 130 The 
John Oram Snow. 2m News 
Sutenray; Rey of tta Week: Aa 
You Like it by WHJfam 
Shakespeare. 000 Newsdeak. 
090 The Greatest Music 
Festival In Ute World. 430 
Newsdeak. 430 BSC Engfch. 
445 News rod Press Review in 
Gorman. 


BBC RADIO 2 

730 Don Maclean. 005 
Mfctnaa AepcL 1030 Hayes an 
Sunday. 1000 Desmond 
Carrington. 200 Benny Green. 
030 Man Defl. 430 Sorer rate 
fo Brass. 430 Sfog Something 
Simple. 630 Roger Royte. 730 
Richard Baker. 830 Sunday 
Hart Hour. 930 Alan Keuh. 
1030 Reassessing Seiters. 

1235 StBVB Madden. 000 Ala* 
Lester. 


BBC RADIO 3 

030 Open Unhrarsfry: Gender 
and Consumption. 635 
War®*?. 730 Sacred and 
Profena 000 Briro Ktiy^ 
Sroday Momfog. Vaighan 
woams, Vtoywr, 
Menaate oi to. Pucefl. 
Honegger. Hummol, Franck, 
Sgar. CJ>£ Bach, Kodaly. 
Malcolm Arnold. Bach. 
Respighi. 1213 Muric Manata 
130 The Suxtey Concert. 240 
Haydn. 000 1994 AJdeixrgh 
FefilvaL 445 Paxar WaBBsTO. 
Beadtown. 015 Making 
Waves. With American 
stngsr-songwnter Peggy Ua 
630 Brodsky Quartet 730 
Sravtey Play: Measure lor 
MtSA Shakespeare's 
comedy. Wfrh Rorsid ndojp. 
030 Mudc to Ora Tima 1(150 
Chcir Works. Lassus and 
Semite. 1430 Ctoea 


BBC RADIO 4 
000 News. 


010 Prekate. 

030 Morning Has Brokea 

730 Newa 

7.10 Sustey Papera 

7.15 The Living Wortd. 

740 Sunday. 

050 The Week's Good Causa 
030 Newa 
010 Sunday Papera 
015 Letter from America 
gjO Morning Serves. 

1tU» The Archers. 

1130 Madranwraia 
1130 (LWJTesl Match Special. 
1145 The New Euro p ean s . 
1215 Desert bland Discs. 

130 The World This Weekend 
200 Ga rde n ers' Question Tima 
230 Cbaslc Serial Tha Tree of 
Strife. 

030 ReK of iho Weeki 

4.15 Analysis. 

530 Retired end the Chocolste 
Factory. 

530 Poetry Please! Anonymous 
versa 

930 SbeOQaro Newa 
015 reerihork. 

030 Crimewavea Ffoai pari or 
□lane wWMay and Dbvb 
S impson's thrttar. 

730 fo Buataosa areas in tha 
workplace. 

730 A Good Read. 

000 That's nsury. 

000 0W) Open Unrrersfty. 

830 Herafog Heaven. 

930 The Natural Hkstety 

Programme. 

930 Big Seng. 

1030 News. 


1015 H anode's HbU Hour. 
The Last of the McHancocMs, 
by Ray Getton and Alan 
Sbnpmn. 

1045 Sfogfog tor a Living. 
Mgsl Dougt as tafia to soprano 
Josephine Barefoot. 

11.15 In Cornmftteo. 

1146 Seeds d Fahh. 

1200 Newa 

1230 Shipping Forecast 

1249 (LW) AS BBC Wbrid 

Sravtea 

1243 0030 . 


BBC RADIO 8 UVE 

639 Hot PinuHa 
630 The Breakfast Pro^amme. 
930 Akastafr Stewart's Smday. 
1200 Mddsy Edition. 

1215 Thq Kg Byte. 

134 Sunday Sport 
730 News Extra. 

735 Black to the Future. 

030 The Ultimate Preview. 
1035 Special Assignment 
1035 Crime Desk. 
113ON0itE*ra. 

1206 MghtcdL 
200 Up AS MghL 


WORLD SERVICE 

BBC tor Europe can bo 
re cei ved in — stem Europe 
rm Medkan Wave 646 kHZ 
(463m) at these (fates BST: 
630 News and features In 
German. 630 Composer Of 
The Month. 730 Works and 
Smish Newa 7.15 Latter tram 


America 730 Jazz For The 
Asking. 000 World Newa 015 
Crossing the Border. 830 From 
Ora Own Correspondent. 050 
Write On. 930 Wortd Newa 
930 Word* of Faith. 015 Roy 
on Record. 1000 Wortd News 
and Business Review. 1015 
Short Stray. 1030 Folk Routes. 
1045 Sports Ftorodup. 1130 
News Summary; Science In 
Aetna 1130 BBC English. 
1146 News end Press Review 
In German. 1200 Newsdesk. 
1230 The John Dunn Show. 
130 News Summary, Ptay erf 
the Week: As You LBce 0 200 
NBwsbeur. 3.00 News 
Summary; After the RevoUion. 
030 Anything Goes- 4.09 
World Newa 4.19 BBC Engfish. 
430 News and features in 
Granaa 530 Wbrid end British 
Newa 015 BBC Engfch. 830 
World News and Business 
Review. 015 Printer's Oev0 
630 News and features In 
German. BOO Tha Musician's 
Musfctan. 030 &rope Today. 
930 Wortd News. 039 Words 
of Faith. 015 A Question of 
Science. 930 Brafo of Gttefo. 
1000 Newshaur. 1130 World 
Nows and Business Review. 
11.15 Short Stay. 1130 Letter 
from America 11.45 Sporte 
Roundup. 1200 Newsdesk. 
1230 After the Revolution. 130 
Wortd and British News. 1.15 A 
Step Too Far. 130 to Praise of 
God. 200 News Summary: The 
Great Lovelier. 245 Crossing 
the Banter. 330 Newsdesk. 
030 Composer of the Month. 
430 Newsdesk. 430 BBC 
Engfch. 445 Frohmagazto. 


CHESS 


Giving your opponents a game 
start Is a peculiar way to qual- 
ify for world championships, 
but it works for Nigel Short. In 
becoming Gary Kasparov's 
challenger. Short squandered 
points at the start of his inter- 
zonal and In all four candi- 
dates’ matches. Each time, 
defeat seemed to stir him 

Short was tack in bis old 
routine at the Intel quarter-fi- 
nals in New York. After his 
dismal loss to Boris Gulko (see 
last week's puzzle). Short won 
in style the next day to square 
the eight-game series. 

(N. Short, White; B. Gulko, 
Black). 

1 e4 C6 2 d4 d5 3 Nc3 dxe4 4 
Nxe4 Nd7. 

S Bc4 NgfB 8 Ngs es 7 Qe2. 

Nb6 8 Bb3 h6 9 N5f3 a5 10 c3 
c5 11 a3 Qc7. Here, Kasparov 
played 12 Ne5? at Linares and 
his opponent Karpov missed 
12...Bxa3! when 13 Rxa3 Qxci+ 
or 13 bxa3 Qc3+ win for Black. 

After their mutual oversight, 
K and K began damage limita- 
tion. Kasparov claimed he had 
seen Bxa3 and planned 14 Bxh6 
Bxb2 15 Qxb2 Rxh6 16 Ngf3 
with compensation for a pawn. 
TOien Karpov retorted that 14 
Bxhfi Bb4+ 15 Bd2 Bxd2+ 16 
Qxd 2 a4 was better for Black, 
and that 12 Ne5 was White's 
logical move. 

12 Nh3! Both Ks were bluff- 
ing. Short simply develops 


another piece. Bd7 13 0-0 Bd6 
14 dxc5 Qxc5 15 Be3 Qc7 16 
Bd4 Ng4? 17 Nd2! N«6 Black 
finds that if Nxh2 IS Bxb6 
Qxb8 19 Nc4 QcT 20 Nxd6+ 
Qxd6 21 Rfdl Qc7 22 13 traps 
his knight. 

18 Khl <M) 19 BxfS gxf6 20 
Qg4+ Kh7 21 Ne4 f5 22 Nf6+ 
Kh8 23 Qh4 Kg7 24 Radi Bc5 
25 Nb5+ Kg7 26 f4 BbS 27 
NgS+! Resigns. 

White has a mating attack 
after Kg8 28 Nf&+ BxfB 29 Qxh6 
or Kg6 28 Rd3 hxgS 29 Qxg5+ 
Kh7 30 NfS+. 

Chess No 1026 



X* 

X 


SLL 


A 

A A 


A 

Sr 

A 


na 

& 

& 

SA 


&& 



^s>_ 

rt 



Vishy Anand v Peter Leko. 
Intel blitz. Munich 1994. The 
world’s best speed player 
meets the youngest grandmas- 
ter, aged 14. How does White 
(to play) win quickly? 

Solution. Page XXT 

Leonard Barden 


BRIDGE 


This hand from rubber bridge 
was played in a Danish club. 
Here is the Power of Pressure: 

N 

4 s 

f AKQ753 
♦ A Q 8 
*753 

W E 

4 A 7 6 5 4 2 4 Q J 

¥9 ¥642 

4 6432 4975 

4 9 2 4 K J 10 8 4 

S 

4 K 1098 
¥ J10 8 
4 K J 10 
4 A Q 6 

South was dealer, with North- 
South vulnerable, and opened 
the bidding with one club. 
West over-called with one 
spade - a dubious bid - and 
North said two hearts. East 
raised to two spades. South re- 
bid three no-trumps, and 
North’s jump to six no-trumps 
concluded the auction. 

West started with the four of 
diam onds and prospects were 
not good. There were 10 top 
tricks and. in view of West’s 


over-call, the club finesse 
seemed unlikely to succeed. 

Winning with dummy's ace, 
South cashed the six heart 
winners, discarding two of his 
spades and the club six from 
hand There was nothing far it 
the finesse in clubs had to be 
taken, so declarer led a chib 
and finessed his queen. It held. 
In the five-card ending. West 
held A7 of spades and 63 of 
diamonds; dummy held 3 of 
spades,Q8 of diamonds and 75 
of clubs; East held QJ of 
spades, 9 Of diamonds and KJ 
of clubs; while the declarer 
held KlO of spades, KJ of dia- 
monds and ace of clubs. 

South led the ace of clubs, 
forcing West to throw a dia- 
mond, and then cashed king 
and queen of diamonds, forcing 
East to throw one of his 
spades. Now the three of 
spades ran to queen, king and 
ace, and West had to return his 
seven to give declarer his 12th 
trick. Full marks to South for 
an excellent performance. 

E.P.C. Cotter 


CROSSWORD 


No. 8,483 Set by DINMUTZ 

A prize of a classic Pelikan Sonverfin 800 fountain pen, inscribed with the 
winner’s name for the first e mma. s olution opened and five runner-up 
prizes of £35 Pelikan vouchers. Solutions by Wednesday June 28. marked 
Crossword 8.483 on the envelope, to the Financial Times. Number One 
Southwark Bridge, London SEl 9HL. Solution on Saturday July 2 



Name— 


Addresa- 


ACFtOSS 

1 Resolve of police fo rce in river 
( 6 ) 

4 Sacks for people handling 
money (8) 

10 One in court showing ugly fit 

11 Ifona^ed iong hammer (5) 

12 Rank-smelling lido to be 
rebuilt (4) 

13 Nurseryman's guarded guar- 
antee with hawthorn? ( 10 ) 

15 Act of oblivion set many free 
(7) 

16 Results of games, possibly (6) 

19 Salts away from supermar- 
kets (6) 

21 Char served cold, with less £ai 
on It (7) 

23 High C's, we hear, hanaooo- 
ing in such a big vessel? (5-5) 

25 Composer in a chamber group 

(4) 

27 Fortify with spirit (5) 

28 Person often on the rocks gets 
igloo converted (9) 

29 Slack water presumably late 

in the day? (8) 

30 Fresh approach to sailors (6) 

DOWN 

1 One needs tact with mad pilot 
in flight (8) 

Solution 8,482 


QaOQQCHlB □SE1EQB 


□□□SKIDDS QHDCjGQ 


2 Old reed instrument (the mod- 
ern type has one hole fewer) 
(9) 

3 Depression In study time (4) 

5 Good-natured American fel- 
low with story (7) 

6 It measures humidity in the 
merry -go-round ao) 

7 First of early birds in roof- 


6 


Strauss’ headhunter? 


(G) 


0 One may have large and little 
woman in it! (6) 

14 A cord, net perhaps, that is 
checking blood flow (10) 

17 inne r gate opens to reveal a 
mandar in in a loose jacket (9) 

18 Expression of fall agreement 

follows Britain's first resort 

20 School kept record, having 
worked hard (7) 

21 Insincere talk about part of 


22 Clydeside Moll? (6) 

24 Awesome electromotive force 

on lake (5) 

26 Bird dead, with nothing to fol- 
low? You can say that again! 
(4) 

Solution 8,471 


N 


I PDTDTD3DAD 1 ■ i | 

1l1q|aImie(sihBmi 1 ISIEIRI 

gWpWiRl Bb ral A M T M El 

■sitiaiyBpiuInIoTeTHTt 

m H 1 ■ |I B 

SIOlPWIIlTWLIEIAlO^ il 

oDODNyownMiiF 

T|Hl 1 IcluMSIUlPIElWlSlEME 1 
lEMLMLM7JBHWEMglffT 
RiOiA|D]l |eMk[o|h|l(r|a | bi 

—— ■ I ■ I ■ 



□ouna EOH0QOEBB 
□ a 0 H 0 H 0 

□□□ULDQDBO LiUUyn 
0DS0I10BB 
□HQ00Q manEiinnc] Baiia □hobeiqbiihbci 


WINNERS 8,471: A. Dnrai, Burgess Bill; Mrs M. Crowther, Manches- 
ter; Mrs J. Hams. Sydling-S t-Nieholas, Dorset; D. Kehnanson, Hai 
Wood, Herts; N.W. Lee. Tonbridge. Kent; A. Polakowski, Mold, Ch 




Short - not necessarily sweet 

Dominic Lawson considers the weighty political and economic significance of a truncated name 

jgan president could be called ‘Bill’. 


Last week The 
Spectator received 
advance notice of an 
impending- political 
disaster. It came in 
the farm of a letter 
from David de 
Pinna, which 
warned that "there 
is a possibility that 
Great Britain could have a prime 
ministe r named Tony. Tony!” 

Following the disastrous showing 
of the government in the European 
ejections, and the cracking start by 
Tony Blair in the campaign for the 
Labour leadership, there is Indeed a 
good chance of de Pinna’s night- 
mare becoming reality. 

He concludes: That an important 
section of the western world could 
be Ted’ by Bill and Tony does not 
inspire. What lack of dignity. Flow- 
er-pot men indeed!” 

It (s less surprising that an Amer- 


Qne of the characteristics which 
distinguishes our former colony 
from the motherland is the way in 
which Its citizens make haste to 
shorten their given names. Have 
you ever heard of an American 
called Charles? Only ‘Chuck’ will 
do. If you are called ’Charles* and 
you have spent any time in Amer- 
ica, you will know, all too embar- 
rassingly, What I lwaan. 

The Australians axe similarly 
besotted with the instantly familiar 
abbreviation. I have never been 
called anything other than ‘Dom’ by 


Australians, something which no 
Englishman has ever attempted 
even as a Joke. But if it was Prime 
Minister ’Bob' Hawke, who am I to 

ramplain? 

It is a pity, though, that the habit 
has caught on in Britain. I used to 
enjoy teasing 'Chris’ Patten at his 
insistence on the chummy familiar, 
and I believe that it sounds even 
odder far a governor of Hong Kong. 
If Patten had stuck to his baptismal 
name of Christopher, he could have 
enjoyed wearing a plumed hat at 
his inauguration. But as ‘Chris’ he 
bad no choice but to break with 


tradition, and take the oath bare- 
headed. 

The last time I raised this matter 
with Patten, he pointed out that at 
least he, on attaining high office as 
a Cabinet minister, had not sud- 
denly and mysteriously transformed 
himself hack into a Christopher. 

1 believe he was referring to Ken 
Baker, who reinstalled his ‘neth’ on 
becoming a member of one of 
Thatcher’s cabinets. I have a sneak- 
ing feeling that Clarke has also 
encouraged more of the Kenneth 
and less of the ‘Ken’ since he 
became chancellor. I would have 


said that this was an essential polit- 
ical act, that a chancellor called 
Ken was no sort of guarantee of the 
value of the pound. But look, we 

now have a Governor of the Bank of 

England called ’Eddie’. 

At first I thought this a national 
disgrace, but recently I have come 
round to seeing the virtue in it. Just 
as a Labour government needs to be 
Ear more financially prudent than a 
Conservative one to keep the mar- 
kets happy, so I believe that a Bank 

of England Governor called ‘Eddie’ 

needs to behave with a wholly 
admirable caution in order to be 


taken seriously by teenage currency 
traders who might very well also be 
called 'Eddie'. A grandee called Sir 
Edward George might think he 
could get away with any sort of 
nonsense. 

However, what is good enough for 
the Bank of England and the future 
of the currency is dearly not good 
enough for the residents of a pri- 
vate housing estate in the town of 
Midsomer Norton. Those people are 
very unhappy that the local council 
- a Labour one - had determined to 
call the new estate 'Reg Jones 
CSose', after a miner who died two 


years ago. 

The residents, apparently, had 
assumed that their estate was going 
to be called Wetiow Brook Meadow, 
and were convinced that the name 
Reg Jones dose would cause the 
value of their property to suffer, ft *•> 
was not the fact that Jones was a 
minor which was the problem - the 
council has acceded to residents’ 
wishes - nor even his given name, 

It was that damned abbreviation. 

One of the residents, complained: *1 
wouldn’t mind Reginald at all. But 
’Reg’ sounds so ridiculous 

Will the prospect of posthumous 
ridicule from irate property owners 
cause Blair to reassume the dbmlty 
of ‘Anthony 1 ? No. I believe we wUl 
have a Labour prime minister 
named Tony’. But at least he wont 
be called That really would 
have been flower-pot time. 

Dominic Lozuscn is editor 
of The Spectator. 



Private View /Christian Tyler 

A detective on the trail of life 



A whizz-kid of the palaeobiological world, Conway Morris is a man who has a prehistoric surprise or two up his sleeve. . . 


M ankind's ancestor 
- or something 
very dose to it - 
is lying quietly in 
a drawer in Simon. 
Conway Morris's study. Pifcaia is 
two inches long, scarcely more than 
a dark, minnow-shaped indentation 
in a flake of blue-grey shale. 

It does not look like much. But 
Conway Morris has spent 20 years 
studying this and other weird little 
sea creatures crushed In a Canadian 
mudslide some 525m years ago. To 
him Pikodn is clearly a primitive 
chordata, a precursor of the fish 
and, thus, of all vertebrates, includ- 
ing homo sapiens . 

Conway Morris is perhaps more 
sapiens than most of us. At 42 he is 
a lively, approachable and humor- 
ous sort of academic, with some- 
thing of the scruffy, fossil-hunting 
schoolboy about him. 

But he is a whizz-kid of the 
palaeobiological world, one of a trio 
of Cambridge University scientists 
- the others were fellow graduate 
student Derek Briggs and their 
supervisor Horry Whittington - 
whose exploits were dramatised in 
Wonderful life, a prize-winning sci- 
ence book by Stephen Jay Gould. 

According to Gould, the trio’s rev- 
elations about the multiplicity of 
strange body-plans found in the 
Burgess Shale of the early Cam- 
brian period - long; long before the 
dinosaurs - should shatter Man’s 
last illusions about his special place 
in the universe. 

We have been in psychological 
retreat far several hundred years. 
First we were removed from the 
centre of the solar system, then we 
were exposed as parvenu animals, 
then we were relegated to an 
obscure comer of the cosmos. Now, 
argued Gould, it should be clear 
that we people are an extraordinary 
fluke, the lucky survivors of an evo- 
lutionary lottery. And If you reran 
the tape it would all turn out very 
differently Indeed. 

Well, not quite. The hero of this 
palaeontological detective story dis- 
agrees profoundly with that kind of 
interpretation of his work. 

Would you say, I asked him, that 
evolution is in some sense progres- 
sive? 

“Yes, I would. This Is not some- 
thing which is popular. Gould 
makes the fair point that we are one 
twig of an enormous tree of evolu- 
tion, and in that way we are no 
more privileged than the millions of 
other planets which are meant to 
have life on them. Presumably cm at 
least some of them something close 
to what we identify as conscious- 
ness has arisen. It would be strange 
if it hadn't" 

So Conway Morris is not sur- 
prised that animal consciousness 
and big brains emerged on earth. 
Indeed, he thinks that was indicated 
as far back as the Cambrian when 
neural tissue was already evident 
and creatures had developed 
enough nervous apparatus to 
escape their predators. A bigger 
puzzle, he said, was why homo sap- 
iens bad been sitting around for 
50,000 years doing practically noth- 
ing before his mental life took off. 

Nor was evolution such a great 
lottery. The appearance of any par- 
ticular species, such as homo sap- 
iens , could be called a big surprise, 
but a bipedal omnivore was not 


wildly unlikely. “It is a lottery only 
In the sense that 1 wouldn’t be sit- 
ting here if my parents hadn't met. 
But almost certainly this building 
would be here, and you can take 
things much farther back.” 

For although the body plans of 
the fossil creatures in the Burgess 
Shale were very diverse, their 
mechanisms tended to converge. 
(He does not believe, either, that the 
variety of creatures alive than was 
any greater than it is today.) 


“If there is air, you would expect 
flyers, if oceans, swimmers,” he 
explained. “And you can only move 
through water in about four differ- 
ent ways. You can row, or you can 
have a sinuous movement like an 
eel, or you can. ’fly’, or you can have 
jet propulsion.” 

(im evolution tell us about our 
future? 

“No, of course not, no. It was 
always clear that potentially the 
sky's the limit Very seldom is it 


achieved. I think you can't say 
more than that But at one level I 
feel we have almost progressed as 
Ear as we can.” 

Our technical ability is outrun- 
ning' our evolutionary development? 

“Oh yes! Our ability to run social 
systems seems to be perilously 
awry. 1 know that doom-gloom is 
the fashion, but . . .” 

Does this view come from your 
palaeobiology? 

T Wiintf it Tm$ a ne gligib le influ- 


ence. That’s just what I do 
extremely well, in the same way as 
a woodworker or a potter.” 

It was important for us to know 
our history. “But it is no good 
appealing to that as a justification 
for oar behaviour, because it's been 
mgrfp perfectly dear how we ought 
to behave.” 

To argue that the size of the uni- 
verse reduced us to insignificance 
was nonsense, he continued, pre- 
cisely because we had the ability to 


For reasons that do 
not matter, I spent 
part of this week 
fossicking through 
the FT’s “sport- 
swire” basket, 
looking for stories 
about the World 
Cup. The sports wire 
basket is one of the 
most obscure baskets in the FTs 
computer system. 

Only the most exotic journalists 
are allowed near it - no doubt on 
the assumption that FT writers do 
not need to know the result of the 
Coronation Stakes at Royal Ascot, 
or whether the Colombian, soccer 
team is permitted to smoke grass on 
World (hip rest days. 

L on the other hand, am allowed 
to rummage anywhere, induding 
the sports wire basket, winch mar- 
dials all sports stories filed on the 
news-agency circuits to which the 
FT subscribes. 

Enjoyably, 1 found myself time- 
machined back into the macho 
milieu of news-agency sports report- 
ing. This is a rough, tough world. 
You sink or you swim. You have to 
be good and you have to be fast. 
There Is no room for whims. Fun- 
nily enough, I used to be a , sports- 


I’ll be hornswoggled 


Michael Thompson-Noel 


writer,, and was once offered a job 
by Associated Press, the American 
news agency, in Virginia. 

I could not get a work permit, so I 
drifted back to London. But my 
browsing in the sportswire basket 
reminded me of the starkness and 
directness of news-agency work, 
and of the values of sports journal- 
ism, which is often regarded snoo- 
tily by rum-sports hacks. 

Here is the start of a news-agency 
sports story filed this week from 
Pittsburg: 

Colin Montgomerie has been 
looking forward to the OS Open 
more than anything else this year. 
But when he tees off at Oakmont 
tomorrow the big Scot's primary mm 
taill be to try to avoid making a 


HAWKS 

— & — 
HANDSAWS 


And here is the start of another, 
filed from London: 

It’s just what soctxr purists feared. 
Nino Americans are staging the 
World Cup, they plan to revolution 


ise the sport, painting the field red, 
blue and yellow, breaking the game 
into three thirds instead of two 
haloes and hasting players wear 
skin-tight body-stockings instead of 
shirts and shorts. 

The new look to a sport steeped in 
tradition win come in a pro league 
starting up next year in 12 American 
cities 

There is a great deal of technique 
at work here. Both stories hook 
your attention at once, and hold on 
like terriers. For example, the first 
story, about golfer Cohn Montgom- 
erie, used the delayed-action trick 
with consummate skill It wasn’t 


until the fourth paragraph that we 
realised that “making a complete 
fool of himself” had a technical - 
golfy - meaning, and wasn't just 
abuse: 

"By making a fool of yourself [said 
Montgomerie] l mean three- or four- 
putting from 10ft, hardly mooing the 
ball in the rough, or thinning or 
shanking it" 

It strikes me that non-sports jour- 
nalists in Britain could learn a 
great deal by reading their own 
sports pages. There is a belief in 
some quarters that Britain’s 
national press is living through a 
dark age, or at least a grey one, 
caused by the ascendancy of 
accountants and the drive for 
greater journalistic productivity. As 
a result, Britain's newspapers, at 
least at the quality end, have been 
bleached and leeched so violently 
that they have become fuzzy and 
unadventurous. Their aggression 
has been stomped out 


I sometimes wonder whether this 
lack of aggression is the reason that 
John Major has survived so long in 
office. John Major is prime minister 
of Britain, though to look at Britain 
you would not believe that anyone 
was in charge. This is how one 
story about Major started this week: 

A surprise return by John MacGre- 
gor to the education department is 
one of the options being considered 
by John Major as he prepares far a 
substantial reconstruction of the gov- 
ernment next month. 

What a cop-out. How tame. 
Instead, a top wire-agency writer 
might have written it like this: 

Prime minister John Major 
couldn't spell " homswoggle " if he 
tried, ffe even has trouble with 
“dunce.” Bid to boost his govern ■ 
merit’s IQ into the low 20s, he is 
plotting a savage ministerial 
shake-up. Only trouble is, it features 
the return of John "Brants" MacGre- 
gor to the education job. 

With the World Cup starting in 
the US, I would urge journalists on 
Britain’s up-market papers to study 
the skills and aggression that 
underpin the work of the sports- 
writers. if we were as good as they 
are, Britain's troubles would dis- 
perse like mist at the 14th tee. 


comprehend it “We have the privi- 
lege to understand our biological 
history - and don't misunderstand 
me, Pm a dyed-in-the-wool neo-Dar- 
winian when it comes to evolution. 
Its a fascinating stony and it's fun 
to work out But - and I'd better be 
carefol what I say - It really doesn't 
make a great difference now we’re 
here, because the experiment we're 
engaged in of rampant conscious- 
ness is evolutionarily unique.” 

Technically Conway Morris is at 
the peak of his trade; philosophi- 
cally he appears out of the main- 
stream. I was reminded of Teilhard 
de Chardin, the French palaeontolo- 
gist and Jesuit who tried to synthe- 
sise evolutionary biology and Chris- 
tian teleology. Did Teilhard’s idea of 
a “noosphere” make any sense? 

“That Tm much less sure of. It's 
very difficult. This Is really my pri- 
vate thing and I have to be very 
careful what I say. But my own 
sense is that consciousness is much 
more than simply the sum of the 
parts plus a bit: it's much more 
than epiphenometuL 

“I think that there is something 
about consciousness which actually 
involves one malting contact with 
something. In other words, l don't 
think it's entirely in one's head. 

“But this is a completely unscien- 
tific thing to say. It’s impossible to 
justify. When someone dies their 
brain stops working and in so far as 
we know they lose consciousness. 
So far as we know. My strong sense 
is - not thinking In necessarily a 
Junglan or Christian way. let alone 
any other religion - Is that you are 
effectively malting contact with 
something outside yourself.” 

With something more than, say, a 
collective unconscious? 

“I suspect so.” 

What makes you say that? 

"Hunch. Total hunch.” 

You’re an odd biologist, then. 

“Indeed, yes.” He pointed to a 
book among the heaps of papers 
stacked about the room. It was enti- 
tled Mithras. “You see. I'm quite 
interested in theology,” be said. 

Conway Morris hopes to spring 
another prehistoric surprise. With 
the freedom he now enjoys as 
Reader in evolutionary palaeobiol- 
ogy at Cambridge, he has been 
working in Greenland with John 
Peel of Uppsala University on a fos- 
sil find about 10m years older than 
the Burgess Shale. 


'Would you like to see?" He 
dragged out a blown- up drawing of 
what looked like a woodlouse. This 
was i Halkieriid, a sort of hard- 
topped slug which Conway Morris 
believes will show how different 
body plans, or phyla, can develop 
from a common parent 

“We think that we have more or 
less cracked the problem of the ori- 
gin of phyla,” he said. “This sounds 
very hubrlstic. I’ve been wrong in 
the past." (He got one of his Bur- 
gess Shale creatures, Hallucigenia. 
upside down). “But if our ideas are 
accepted, it would mean we have 
cracked what has been regarded as 
a fairly significant problem - the 
origin of a large number of separate 
designs over a short period of time." 

This discovery, if so it be, coin- 
cides with the latest thinking of 
Cambridge’s molecular biologists 
who have found similarities in the 
genetic instruction mechanism for 
creatures as different as mice and 
flies. 

I asked him: Doesn’t your engage- 
mezxt with these creatures from an 
unimaginably distant age make you 
feel your own existence is patheti- 
cally short? 

“Hubristicaliy, one would say yon 
can always play it at two levels. By 
now one knows one's own mortal- 
ity. It isn't that one has some privi- 
leged or special destiny - rather the 
reverse - but the very fact that one 
can get such intense enjoyment 
from things like music, because yon 
are carried out of yourself, those 
sort of concerns shrink to nothing. 

But the fact that we are appan , 
ently so contingent . . ? P 

“We have to grow up. I agree with 
that. But we are responsible for our 
actions - that's never bear denied. 

“I dent think our ‘contingency 
makes a big difference. Same people 
may seek a very high and noble 
vision through science - science 
acting as a substitute for a spiritual 
crutch. I don't think that is achiev- 
able by science alone ... 

“You may say our deep notions of 
purpose are just defence mecha- 
nisms, that the whole thing Is a 
complete joke - there’s nothing out 
there, we’re on a small planet, we’re 
all going to (tie, our species may 
last, maybe, a million years. You 
could say we are just an awful mis- 
take and the sooner we go, the bet- 
ter. One doesn’t want to believe 
that And, as it happens, I don’t." 


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