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FINANCIAL TIMES 










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Price-cut protest 
planned against 
Murdoch group 

Airfreas Wbittam Smith, mam founder of The 
independent newspaper, which Is based in Tandnn, 
plans to go to the UK Office of Fair Trading next 
week to accuse Rupert Murdoch's News Corpora- 
tion. of predatory pricing by reducing the cover 
price of The Times to 20p. HQs anp gatinn is wi red 
by shadow trade and industry secretary Robin 
Cook who wants the OFT to investigate the British 
newspaper pricing war. Page 24 and Lex 

’ Transplant patient reco ve ri n g weft: 

Stephen Hyett, a 32-year- 
old butcher from Haver- 
hill, Suffolk, pictured 
left with his wife Tracy, 
says he feels fine after 
undergoing a rare 
multiple-organ trans- 
plant at Addenbrooke’s 
Hospital, Cambridge, 
southern England. 

He is cme of only a 
handful of people in 
the world to have 
received a new liver, kidney, stomach, duodenum, 
small bowel and pancreas. He suffers from Gard- 
ner’s Syndrome, a condition that raw renua» Hp«Hy 
tumours in the bowel and duodenum. 

PosTel, £20 bn UK investment management 
group, is to vote at company annual meetings 
against the reflection of directors who have rolling 
employment contracts longer than two years. 

Page 24 and Lex 

Gunman on rampage in Frankfurt: A 

gunman armed with a marhftm pistol struck 
in the centre of Frankfurt, killing one man and 
seriously injuring three other people, mdnding 
a nhilri- He later gave hrmaaff up. 

Opinion peril puts CDU fan lead: Germany’s 
governing Christian Democratic Union has moved 
4 paints dear of its election rival, the Social Demo- 
cratic party, for the first time in three years, 
the latest German opinion poll shows. Page 3 

Rebels strike Kigali: Rwandan rebels blitzed 
the gover nm ent-held centre of Kigali, inflicting 
drams of casualties and hitting the Red Cross 
hospital and public market with mortar fire. 

Boy, 13, cleared of rape: Magistrates at 
Newport, Isle of Wight, cleared a 13-year-oW boy 
of raping a girl in a school sandpit The boy, 12 
at the time of the alleged offence, is the youngest 
person to have been charged with rape in Britain. 

Mfnlstsr resigns: Portugal’s junior minister 
for employment and training, Antonio Pinto Car- 
doso, has quit after an investigation was launched 
into the suspected misuse of European Social 
Fund money. Page 3 

Giant atom-smasher plan on trade Europe 
is on the brink of building the world’s most power- 
ful atom-smasher after the Council of Cem, the 
European particle physics laboratory near Geneva, 
backed the project Page 4 

Hope of HK airport accord: A draft agreement 
on the firm wring of Hong Kong's HE$158bn ($20 J!bn) 
airport project is being prepared by British and 
Chinese official in the most hopeful sign for 
two years that a deal can be concluded. Page 4 

UK legal aid rules may be revised: The 

government may change the legal aid rules after 
a wealthy Arab businessman received more than 
£4m ($6-lm) in legal aid to fight an embezzlement 
action brought by his former employers, the Arab 
Monetary Fund. Page 7 

UK deficit lowest for years: The UK’s current 
account deficit in the first quarter was just £667m 
($1.0Ibn) - its best performance for seven years, 
according to the Central Statistical Office. Page 6 

Elf Aquitaine, privatised French oil group, 
warned that first-half recurring operating profits 
would fall by about 20 per cent compared with 
the same period last year following low exude 
prices earlier this year. Page II; Lex; Page 24 

Part-time Job for ScuHey: Former Apple 
Computer chief executive John ScuHey has been 
hired as a part-time marketing adviser by Eastman 
Kodak, US photographic products group. 

Page ll 

World Cup: The Irish Republic’s hopes of 
advancing to the next stage of the competition 
were set back when they were beaten 2-1 by Mexico 
in Orlando leaving all tea ms in the group equal 
on points. Weekend, Page XIV 

■ STOCK MARKET BNPtCES ■ STEBL1Q 

FT-SE 10ft - 2fim (-65J3) few 'MtoMn* 

mi .AOB 5 tS51 

FT-SE anta* 100 -1,32834 London: 

FT-SE-A Afl-Shara 1,4** fl-S3B0j 

ma 20,7*75 1-273.46) DM MB £4671) 

few Tvfc fc uwM wp 1 Ffr &®7i (8.4428) 

Dow Jones M Aw — 3*548 H&G1 ) SR JUtfB |Q763j 

svonvd. ten mss t mm (issa* 

■ US mHCtffflg RATES £h ® st ^ 

Federal Funds ft* ■ DOtAAB 

3-mo Treas BBs Dd -^4231* few York kndfinw: 

Loig Bond —85ft DM 1*5 

YtaM 7582* FFr 543Z75 

■ LOMPOH —OMEy SR ^1^295 

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■ NORTH SEA OB. (Af—I FFr 14715 £-4675) 

Brent 15-day (Aog) $1756 (17 3 SR 1*g 

■<*>“ s S Index 638 (B4fl 

HewYakComextfuffl -S3BSL3 (391-9 

5531.7 (330.7) Triqw dosa Y IBM 


WEEKEND JUNE 25/JUNE 26 1994 


■ DOLLAR 

few York intfma: 

DU 1*5 
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SR 1*95 

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London; 

DU 1*72 (1-8035) 
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Y 1068 (101.15) 

S Index 638 (648) 

Tokyo dose Y 1004 


For c us to mer sennee and 
other general enquiries call: 

Frankfurt 
(69) 15685160 


Share and bond prices fall on speculation over higher US interest rates 

Banks 9 action fails to lift dollar 


By Micha el Prow nw in 
Washington, Philip Goggan in 
London and Patrick Harverson 
in New York 

Concerted central bank 
intervention foiled to lift the dol- 
lar in European trading yester- 
day, prompting heavy declines in 
share and bond prices amid spec- 
ulation that the US Federal 
Reserve would be forced to raise 
short-term interest rates a gain to 
defend the US currency. 

Up to 17 central banks, led by 
the Fed, bought an estimated 
$2bn-$3bn during the European 
afternoon, three days after the 
dollar had fallen briefly below 
Y100. a post-1945 low. 

The dollar initially rallied an 
the intervention, climbing to 
Y10L80 and DML6L, but then fell 
back to 7100.9 and DM1.5972 by 
the London close. By mid-after- 
noon in New York, the dollar was 
trading at Y100.41 and DML5827, 
below the levels at which the 
central banks first intervened. 
The Fed ranttrmari to buy dollars 
in New York trading: 

Confirming the action, Mr 
Lfoyd Bentsen, US treasury sec- 
retary, said: "Our actions today 
in cooperation with our Group of 
Seven partners and other mone- 
tary authorities reflect a shared 
concern about recent develop- 
ments in financial markets.” 

In a bint that central hanks 
would try again to stabilise the 
dollar, he added: “We look for- 
ward to continued cooperation to 
maintain the conditions neces- 


Central banks try to revive the witting dollar 


Against the Y*n{¥ par® 
114 — — 


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FT-SE lOO 

Hourly movements 
3,050 


3.000 — - 



10 |> i 

Jan 

Sorter FT Gmprtte 


Japanese trade surplus ‘key 

to currency flux’ Page 4 

UK current account deficit 

surprises City Page 6 

Editorial Comment Page 8 

Living with strong yen J 3 age 9 

sary for sustained economic 
expansion with low inflation." 

' The view on Wall Street was 
that the Fed might have to raise 
the short-term Federal Funds 
rate, currently 425 par cent, at, 
or before, the next planned meet- 
ing of Fed governors and regional 
presidents on July 5-6. 

In London, traders said the 
central bank action had failed 
reinforcing the market view that 
intervention was ineffective in 


Cwrencfes Page 13 

London stocks Page 15 

World stocks.— Page 21 

Lex Page 24 

Barry Riley Wkd FT, Page i 

Markets Wkd FT, Page II 

influencing exchange rate move- 
•mmit s. 

“If the best that the central 
banks ran do Is shift the dollar 
by one pfennig, they might as 
well pack their bags and go 
home," said Mr John Shepperd, 
chief economist at Yamaichi 
International (Europe). 

The apparent failure of the 
intervention depressed stock and 
bond markets in Europe and the 
US. The FT-SE 100 index fell 654 


points to 2£7&6, a new low for 
the year. In Germany the DAX 
index dropped 16.79 points to 
2.005JU. to finish the week with a 
2.2 per cent loss overalL Both 
German bunds and UK gilts fell 
by around % of a point yesterday. 

In New York, the Dow Jones 
industrial average was down 
more than 40 points in mid-after- 
noon at about 3,657, having shed 
more than 50 points earlier In the 
day, a decline that triggered the 
market's “circuit breakers” 
which limit computer programme 
trading. Treasury bond prices 
also fell sharply, with the bench- 
mark 30-year government bond 
dropping IV* points, pushing the 
yield up to 7.514 per cent 

Yesterday's concerted interven- 
tion followed similar action an 
May 4 and intervention by the 


20 June 1094 24 

Source - Routers 

Fed in April to try to stem the 
dollar's decline. 

Earlier this week, President 
Bill Clinton, Mr Bentsen and Mr 
Alan Greenspan, the Fed chair - 
man, attempted to talk the dollar 
higher by emphasising the 
strength of the US recovery and 
the encouraging outlook for infla- 
tion. 

But the dollar’s failure to 
respond may partially reflect the 
muted tone of Mr Bentsen's 
remarks. He appeared unwilling 
to defend any particular value of 
the currency, suggesting Instead, 
that the US regarded dollar weak- 
ness as a problem for the global 
community. Upward pressure on 
the yen and D-Mark will stimu- 
late US exports in the short run 
but could undermine recovery in 
Europe and Japan. 


Hata fights to defeat no-confidence vote 

Tokyo coalition in last-ditch talks with SDP 


By WIBIani Dawldns In Tokyo 

Japan's nine-week-old minority 
government was last night fight- 
ing for survival after tall™ aimed 
at averting a no-confidence vote 
in the government broke down. 

The five-party government of 
Mr Tsntamu Hata was still trying 
last night in backroom talks to 
persuade the opposition Social 
Democrats to rejoin the coalition. 
This would give it enough votes 
to defeat a noconfidence motion 
launched by the Liberal Demo- 
cratic party, the largest opposi- 
tion group. 

The vote was scheduled for the 
early hours of thin morning. The 
impasse followed a breakdown in 
talks between Mr Hata, the prime 
minister, and Mr Tomiichl 


Murayama, leader of the Social 

ri pmnrrate 

It increased the risk that Japan 
will descend into another leader- 
ship crisis just before the summit 
in Naples at the start of next 
month of the Group of Seven 
leading industrial nations, at 
which Tokyo was expected to 
present to its partners plans to 
reinforce the fragile revival of 
the world’s second largest econ- 
omy. 

“Japan will lose the trust ctf 
international society." warned 
Mr Ichiro Ozawa, the govern- 
ment’s strategist “We must send 
prime minister Hata to the sum- 


mit ... if the entire cabinet 
resigns, we won’t be able to form 
a new cabinet in time,” he said. 

Mr Bata and coa li tion officials 
yesterday refused SDP conditions 
that the prime minister should 
resign and that the government 
should water down plans for a 
rise in indirect taxation and pos- 
sible sanctions against North 
Korea. 

The Social Democrats walked 
out of the government just after 
it was formed in April, in protest 
at plans to exclude them from 
policy making. Angry SDP lead- 
ers warned yesterday they would 
put down their own no confi- 


dence motion, in addition to ti» 
one launched by the LDP. The 
outcome of the no confidence 
motion is impossible to predict 

Both the LDP and SDP old 
guard are tempted to vote down 
the government in the hope of 
bringing an early general elec- 
tion, before parliament has a 
chance to pass a pending bill to 
reform the electoral system. 

The older generation fears it 
would do worse under the new 
system doe to come into effect in 
the autumn. 

Japanese trade surplus ‘key to 
currency flux’. Page 4 



Tsutonra Hata: survival battle 


Eurofighter 
deliveries 
jeopardised 
by German 
deadlock 


By Michael Undomann in Bonn 
and Bruce Clark In London 

Deliveries of the European 
fighter aircraft to all four 
nations in the project will be 
delayed for up to a year unless 
Germany's politicians and indus- 
trialists can resolve by next Fri- 
day a dispute about development 
costs. 

The German defence ministry 
said the two sides were far opart 
and there was no prospect of the 
government agreeing to demands 
by Deutsche Aerospace (Dasa), 
the German industrial partner, 
that an extra DMl£bn <£480m) 
be found from public funds for 
the project 

The dispute must be resolved 
before the German legislature 
goes into recess on Friday, or it 
will remain outstanding until 
the end of the year or early 1995, 
when a new government sets out 
its defence priorities. 

The Social Democratic opposi- 
tion in Germany doubts the need 
for the Eurofighter after the end 
of the cold war. Supporters say it 
will meet Western Europe's air 
defence needs until well Into the 
next century. 

The pratject Is already running 
more than two years late. In part 
because of political controversy 
in Germany. 

The four governments 
involved, whose development 
and initial production run are 
expected to cost £30bn, had 
hoped to sign a memorandum of 
understanding to complete devel- 
opment work tills summer. That 
will not be possible unless there 
Is a breakzfiroagh in Germany. 

By current plans, Britain and 
Italy expect to start taking deliv- 
ery of the Enroflghter in tbe 
year 2000, Spain in 2001. and the 
German Air Force in 2002. How- 
ever, defence industry officials 
said this timetable will not be 
feasible unless the German row 
is resolved in the next few days. 

A spokesman for British Aero- 
space Defence, the UK’s Indus- 
trial partner in the project said 
of the German dispute; “We have 
made a commitment to the cus- 
tomer governments and we 
would not wish to see that 
change. We should remember 
that the longer the project takes. 

Continued on Page 24 


Dehaene support strengthens 
in contest for EC presidency 


By Lionel Barber, David Gardner 
and Philip Stephens In Corfu 

A Franco-German driven 
bandwagon to crown Mr Jean- 
Luc Dehaene, the Belgian prime 
minister, as new president of the 
European Commission was gath- 
ering pace last night 

Mr Dehaene seemed to com- 
mand the support of a majority of 
EU leaders, despite widespread 
irritation at tbe way in which 
Chancellor Helmut Kohl has 
sought to control the succession 
to Mr Jacques Defers. 

A victory for the Belgian feder- 
alist would pot Mr John Major, 
tbe UK prime minister, in serious 
political difficulties, ' and risk a 
backlash from right-wing Conser- 
vative MPs. 

Last night as EU leaders gath- 
ered for a showdown dinner over 
the Defers succession at the 
Corfu summit, Mr Major imposed 
a news blackout on the British 
delegation. 

The hwadg of gov ernmen t were 
due to discuss the merits of Mr 
Dehaene's rivals, Mr Ruud Lub- 
bers, the outgoing Dutch prime 
minis ter and one-time favourite, 
and Sir Lean Brittan, EU trade 

mrnmii!gifmpr [ b&Clted by fhfl UK. 

German officials insisted that 
Mr Dehaene would get as many 
as 10 votes, leaving the UK and 


Corfu summit reports ^Page 2 
Seeing red and orange in 

needle matches Page 24 

Union Jacques Eurosceptics 
fear Wkd FT, Page I 


Netherlands no option but to 
withdraw their candidates. Chan- 
cellor Helmut Kohl, who has 
threatened an emergency summit 
next month if there is a deadlock, 
said: "Well be able to settle this 
problem.” 

Other member states were 
more reserved, anderiimng that 
the candidate requires unani- 
mous backing, and that front- 
runners in previous successions 
have been vetoed. 

Mr Defers hfmgpif owes his job 
to a veto by Lady Thatcher, the 
former Britinh prime minister, in 
1984 against the then French for- 
eign minister Mr Claude Cheys- 
san. 

Portuguese, Italian and British 
officials expressed anger at the 
way in which France and Ger- 
many - the dominant in +Hp 
U nion - have tried to impose Mr 
Dehaene. 

Mr Jose Manuel Durao Barroso, 
Portuguese foreign minister, said: 
"Mr Dehaene is a very good can- 
didate, but we do not like the 


way this has been done.” 

Mr Major and Mr Silvio Berlus- 
coni, the new Italian premier, 
agreed yesterday that in future 
the Brussels job should be 
decided differently. 

British officials suggested that 
if Mr Dehaene's candidacy 
proved unstoppable. Mr Major 
would seek to combine his 
appointment with a statement 
from the 12 EU heads of govern- 
ment rai YirnriBrrihirig flip role Of 
the new Commission president. 

A can from Mr Kenneth Baker, 
the former UK home secretary, 
for Mr Major to use his veto 
against Mr Dehaene, brought pri- 
vate acknowledgment from min- 
isters that an apparent federalist 
triumph could reignite civil war 
over Europe inside the UK's rul- 
ing Tory party. 

Mr Lubbers made clear yester- 
day that he was staying in the 
race. Hie said jokingly that Mr 
Dehaene was "a very good prime 
minister - perhaps he should 
stick with it.” 

Mr Douglas Hurd, UK foreign 
secretary, raid recently that 
the UK might fmd Mr Dehaene 
acceptable, because he is not an 
activist in the mould of Mr 
Defers. But Mr Major has reso- 
lutely refused to make his posi- 
tion on the Belgian premier 
known. 


Morgan Grenfell. 

Your First Choice in Japan. 




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ft THf FINANCIAL TIMES LIMITED 1994 No 32,402 Week No 25 LOHPOH ■ PARIS - FRANKFURT ■ HiW YORK ■ TOKYO 


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FINANCIAL. TIMES WEEKEND JUNE 25QLJNH 2b 1W1 


NEWS: EUROPE 


FT writers report from the start of EU leaders’ two-day summit in Corfu 

Yeltsin signs 
plan to bring 
Russia back 


into Europe 


By Lionel Barber 


President Boris Yeltsin of Russia 
yesterday signed a landmark “part- 
nership" agreement with the Euro- 
pean Union which strengthens politi- 
cal and economic ties, and holds out 
the prospect of a free trade area at the 
turn of the century. 

Mr Yeltsin, visibly pleased, told EU 
leaders at the Corfu summit the 
agreement was of historic importance: 
“There is a clear definition of the vari- 
ous stages of bringing Russia bads 
into economic Europe as an equal 
partner." 

The partnership and co-operation 
agreement - similar in scope to the 
pact signed month between the 
EU and Ukraine - is a central plank 
in western strategy aimed at stabilis- 
ing post-communist Russia. 

R also aims to ease Russian nation- 
alist fears of encirclement as more 
countries which were formerly Soviet 
satellites or neutrals, from the Baltic 
to the Adriatic, are drawn into the 
democratic, market-oriented orbit of 
the European Union. 

In a telling sequence, minntes after 
Mr Yeltsin was whisked away in his 
armoured black Zil, the leaders of 
Austria, Finland, Sweden and Norway 
stepped into his place in St George's 
Chapel to sign accession treaties to 
the European Union. Poland and Hun- 
gary have already applied to join the 
EU, with the Czechs in the wings. 

Yet EU diplomats believe their pol- 
icy of embracing Russia is paying off. 
This week, Russia became the 2lst 
country to enter the Nato alliance’s 
Partnership for Peace, dropping its 
earlier demands for a special status 
and joining its former communist sat- 
ellites in central and eastern Europe. 

Neat month, the Group of Seven 
industrialised nations will welcome 
Russia as a member of the G8 at their 
summi t in Naples. The new political 
grouping is calculated to appeal to 
Russia's demands to he treated as a 
great power. 


Sir Leon Brittan. chief EU trade 
negotiator, said the partnership agree- 
ment was more than a symbolic act It 
amounted to a quantum leap in rela- 
tions with Russia which would 
encourage foreign investm e n t in Rus- 
sia and liberalise trade. 

Last year, Russian exports to the 
Union were valued at $17.4bn 
(£11.4bn). around 50 per cent of its 
total exports. Main items included 
minerals (44 per cent) and wood prod- 
ucts (14 per cent). EU exports to Rus- 
sia were $13-5bn, with one third being 
electrical machines and parts; pro- 
cessed foodstuff made up 16 per cent. 

The agreement contains several 
important “safeguard" mec hanisms 
aimed at regulating two-way trade 
before 1938, when the EU and Russia 
will decide whether to embark on the 
far more ambitious goal of a free 
trade area. Its main features inrfnrie: 

• EU support tor Russian accession 
to the General Agreement on Trade 
and Tariffs and the successor World 
Trade Organisation. Meantime, both 
sides agree to consult before increas- 
ing tariffs on each other. 

• Removal of all EU quotas on Rus- 
sian exports, with the exception of 
certain textile and steel products. But 
Moscow may introduce limited 
restrictions in sectors faring heavy 
jobs losses, or those which could lose 
market share to more competitive 
western companies. 

• Safeguard clauses may be intro- 
duced on either side to curb sudden 
surges of imports, similar to those in 
Gatt These require parties to show 
there has been substantial injury to 
domestic producers. 

9 Enriched and nat ural uranium. 
T hanks to pressure from France, 
which has the largest share of the EU 
market, the pact includes safeguard 
clauses similar to an earlier 1 989 pact 
with Russia. The aim is to conclude a 
separate agreement covering nuclear 
fuels by 1997. 

• Investment and business. The 
pact removes obstacles to the free 



Berlusconi goes 
into a minefield 


with aplomb 


By David Gardner 


A Greek armed special force security guard patrols the site of the ED summit on Corfu yesterday 


flow of capital, including direct 
investment as well as repatriation of 
profits. Once established in Russia, 
EU companies cannot be subjected to 
restrictive legislation for three years 
following the passage of any new law. 
Mobility of labour and management 
should increase, too. 

The most vexed topic in the nego- 


tiations concerned the Russian bank- 
ing sector. After much huffing and 
puffing, Moscow has agreed to scrap 
by 1996 a decree maintaining curbs an 
foreign banks. Meantime, this law will 
not apply retrospectively to the five 
banks already given licences in Rus- 
sia - Credit Lyonnais and Gtadrale de 
Banque of France; Dresdner Bank of 


Germany; and the Dutch INGBank 
and ABN Amro. 

Mr Yeltsin called for trust between 
the EU and Russia and welcomed ever 
doser political and economic integra- 
tion inside the Union. Russia intended 
to press for “more and more integra- 
tion" in the Commonwealth of Inde- 
pendent states, he said. 


Mr Silvio Berlusconi, Italy's 
new tycoon premier, took a 
sure first step an to the Sure* 
pean stage yesterday in spite of 
a modest attempt to trip him. 

Arriving at his first BU sum* 
mR for the pre-meeting sign- 
ings of an EU agreement with 
Russia and SU membership 
treaties with Austria. Sweden. 
Finland and Norway, be faced 
an immediate snub. 

Mr Theodores Pangalos. 
Greece’s Socialist European 
affairs minister, who has 
played the lead role in his 
country's six-month presidency 
of the EU. greeted each of the 
arriving heads of government 
with a handshake, but then 
turned his back on Mr Berlus- 
coni and left it to the Greek 
head of protocol to bring him 
into the meeting. 

*riw» Greek ureridencv deni ed 
it had withheld the normal 
greeting and added to the 
snubs Italian ministers have 
been getting from soma of their 
colleagues because of Mr Ber- 
lusconi's iacharioa of aao-fea- 
cists In Us coalition. In so far 
as tbe head of protocol tfid Us 
duty, the Greeks ate their cake 
and had it 

But Mr Berlusoonl was 
unfrued, appeared to sleep 
through most of Russian Presi- 
dent Boris Yeltsin's speech, 
and signed each treaty wfih a 
great flourish and ate rsM s d B. 
Ttan. alone among the 12 lead- 
ers. he bounded over to Nordic 
and Alpine newcomers and 
shook each by the hand - aris- 
ing tbe photoopportunity of 
visual endorsement by the 
squeaky-clean democrats from 
the no rt h n 

He had begun Us day at a 
IK-hour breakfast with Mr 
John Major, the British prime 
minister. Tbe UK. often Iso- 
lated in EU affairs, is attracted 
by Romo's new Buroscepticftl 
tone, and anxious to cement an 
alliance with It. The two 
agreed to hold an Ango-BaBm 
summit soon. 

British officials said Mr 
Major and Mr Berlusconi 
voiced "a fair amount of very 
similar positions on the way to 
go" on deregulation, flexible 
labour markets, and on subskt- 


Angto-trish talks, 
Page 7 


■ ’ {’ 'V ' . { . . 


‘V\ 



Ukraine N-strategy questioned 




By David Gardner 






-s'? 






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On Monday, June 27 the results off an Important new survey, undertaken by the 
Financial Times in association with Price Waterhouse, will be published in the FT. 

It will show which of Europe's leading companies are perceived to be the most 
customer focused, which are thought to have the best products and people and which are 
simply the object of general admiration. 

It will also give valuable insights into the connection between a company's 

commercial success and the esteem in which ft is held by its competitors and peers in 
the market place. 

It Is In fact a survey no selfres peering business should ignore. 


EU efforts to agree on a 
support framework for the 
overhaul of Ukraine's energy 
sector, to make passible the 
early closure of tire Chernobyl 
nuclear reactors, have been 
clouded by leaked reports call- 
ing- into question the strategy 
and Its costs. 

The ElTs Corfu summit is 
expected to agree a common 
position on the Ukrainian 
nuclear safety question today 
to take to next month's G7 
summit in Naples. No figures 
for EU aid will be decided, in 
the hope of extracting maxi- 


mum financial pledges from 
the US and Japan in Naples. 

The essential idea is to raise 
funding sufficient to shut Cher- 
nobyl and complete construc- 
tion of five unfinished Soviet- 
era reactors to western safety 
standards. 

The EU made dear last week 
to President Leonid Kravchuk, 
when the 12 signed a wide- 
ranging partnership agreement 
with Ukraine in Luxembourg, 
that closure of Chernobyl was 
of paramount concern to west 
European governments. 

An April report by experts 
from the European Bank for 
Reconstruction and Develop- 


ment and the World Bank, 
leaked by Greenpeace, the 
environmental campaign 
group, underlines the Inade- 
quate safety standards of plant 
design and operation in 
Ukraine; the near bankruptcy 
of the nuclear sector, which 
constrains upgrading and 
maintenance, leads to staff 
shortages, and risks shoddy 
construction; and the. plethora 
of estimates bn the costs of 
safe nuclear power generation. 

Goskomatom, tbe Ukrainian 
nuclear authority, provided the 
EBRD/World Bank team with 
an estimated cost of gl^bn 
(£790m) to complete five new 


SUMMIT DIARY/KERIN HOPE 


Kohl plays 
up the 
Saxon angle 


Chancellor Helmut Kohl has clearly not 
forgotten last year's remark by Mr Theodore 
Pangalos, Greece’s European affairs minister, 
that tbe re-united Germany has “a bestial 
giant’s strength and a child’s brain”. Both he 
and Mr Klaus Kfaikel, the German foreign min- 
ister, managed to arrive too late for the Corfu 
summit's opening dinner, in honour of Russian 
President Boris Yeltsin. Greek officials were 
not convinced by their excuse of being delayed 
by a last-minute campaign trip to Saxony- 
Anhalt a h ead of Sunday’s state elections. 

Still, Mr Pangalos demonstrated that six 
months of chairing EU meetings have done 
nothing to make him more tactful. Having crit- 
icised the neo-fascists in Italy's government he 
refused to shake bands with Mr Silvio Berlus- 
coni, the Italian prime minister, in foil view of 
the television cameras yesterday. 


kept everyone up too late on Wednesday night 
Dinner dragged on until lam, while a cheerful 
Mr Yeltsin talked and drank toasts to the ECs 
economic pact with Russia. But he left most of 
his food untouched, causing consternation 
among the waiters at the Corfu Palace Hotel, 
who postponed removing his plate long afte r 
the other guests had finished each course. 

Mr Yeltsin then bunked down aboard the 
Alexandras, a yacht belonging to Mr John Lat- 
sis, reputedly the wealthiest Greek shipow ner 
of all, berthed in Corfu harbour and sur- 
rounded by a flotilla of Greek warships. Last 
week, Mr Latsis took former US President 
George Bush and his fiunfly for a mdse of the 
Greek islands on the Alexandras. This week- 
end, he Is is rumoured to be discussing with Mr 
Yeltsin a multi-bfllion-doBar deal for shipping 
Russian oil to Greece through a pipeline to be 
constructed through Bulgaria. 


□ an 


□ □ □ 


One EU leader has the right sense of priorities. 
Mr Albert Reynolds, the Irish prime minister, 
arranged to leave yesterday’s session of talks 
early and head for the press centre so he could 
watch Ireland's World Cup soccer gamp against 
Mexico on television. Greek state television, 
broadcasting the match, arranged a special 
hook-up with RTE, its Irish counterpart, so Mr 
Reynolds could listen to an Irish rattier tha^ a 
Greek commentary. 


air Andreas Papand re on, the Greek prime min- 
ister whose uncertain health is a constant 
worry to the governing Panhellenic Socialist 
Movement, appeared to have put on a new Cue 
for a meeting of European Socialist parties on 
the eve of the summit. From a disfemrp he had 
a suntanned glow to his complexion. Close up, 
however, delegates noticed that he was wearing 
a thick layer of make-up. 

H is yo ung wife Dinritra visited the shrine of 
St Spyridon, the patron saint of Corfu and the 
islanders' health. His mummified remains are 
carried around the town every three monHw, 
recalling a miraculous escape from the plague 
in the 17th century. Mrs Papandreon was seen 
to light a large candle to Us memory. 


a □ □ 


n □ □ 



There were unkind c omments - and not just 
from the Greeks - that President Yeltsin had 


However, Mr John Major, UK prime minister, 
turned down an offer to play in a Saturday 
cricket match on Corfu between two local 
dobs. His advisers were quoted as saying it 
would be "too frivolous". Cricket, a leftover 
from a period of British rule in the Ionian 
Islands, flourishes on a pitch just outside the 
palace where the summit is bring held. 

Mr Major, who played a stylish cover drive 
before injury in a car accident win probably 
regret his decision. He may have to spend much 
of the afternoon writing his turn In the queue 
to leave the island. Because Corfu airport is too 
small to accommodate all the EU leaders' 
flights, most of them are parked at a Nato 
airbase on the Greek mainland. Bickering 
among member states over the order of depar- 
ture is causing headaches for the Greek 
Defence Ministry. 


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THfi FINANCIAL TIMS 
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FRANCE 

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iarity In EU dedston-nwWug. 

But they refund to comment 
on wbether the BaBan swmter 
shared British distaste tot Mr 
Jeon-Luc Dehaeue, Belgium's 
federalist prime minister, who 
loads hi* fellow Christian Dwo- 
oerat rival outgoing Dutch 
prime mlnfeter Ruud Lubbers, 
In the shadowy race to succeed 
Mr Jacques Delon iw Euro- 
pean Commfejtcn president 

Italian officteh were more 
forthcoming, aayfr^ France 
and Germany, Mr Dnbaene’s 
powerful beam riiould not 
be allowed to hnpos^him. The 
ImpUcatfon was tbftt the 12 
leaders might well fkfi to agree 
on a successor at a private An- 
mc tam right. 

But Mr Sttiuaotad fe bolting 
to bargain tor a setfetment of a 
Long-running row taler ftaly’i 
Qouttog at Bp arnfa on milk 
predmriwlaatflwgiTtiwtewd 
to bold up tfaa SU budget 
tocraesu ptmamcf fol next rear 
unless he gate He 

also Maria g? b acking for for- 
mer Brihm trede mfafeter Reu- 
ato Rnggfeeo to fefre over as 
heed of the aawr Wurfd Trede 

B(iQEtp ]W« 



Some EU officials befleve tin 
ftate may have readied an 
undarstanding wtffi Chnote&or 
Hehaut Kohl at their recent 
meeting, in exchange for not 
blocking Mr Detente Yet 6th* 
m think Mr Be rl usco ni will 
was to see wno cue majufity 
backs, and then Kdh ft. 

But the Rattan band Is only 
as strong -as the way Mr Be> 
toscoul plays It Cashing In on 
support for Mr Daboeae naedi 
a stimag fed for bluff, tignafe 
and timing, ff MrUeriusconTs 
early signals let Mr Lubbers 
suggest plausibly he baa Rely 
and the UK co tea side, the 

«t-M— 1 1.-.— »«- - 

Ramm naaar may oecome me 
escuse for a fefiure to reeolve 
the auccasskm at Corfu. 

ft usually trims a while to 
grasp the chemistry of the 
ElTs negotiating dm! hoctege- 
taking. And It would be an 
unusual mam who got it right 
first time. : 


f 


^actors cooriructioB at 
Zaporaafae, Rovno and Khrori- 
zdteky- A year ago, the BBRD 
reported to the G7 that the cost 
of completing just two t£ these 
r e ac to rs would be gt^bn. about 
half of it In hard currmey. 

The Ukrainian government 
has since said that tin over- 
haul af its nuclear sector cooM 
cost up to Stfbn. 

Without western aid, it pre- 
dicts the likely completion of 
only one of the QtenewUrits 

- already 95 per cent finished 

- but only to focal safety stan- 
dards. The fecbftafihg mission 
also wares that Ukraine could 
go ahead with Its February 
decision to re-start next year 
Chernobyl’S second reactor, 
damaged hy fire in4S9L Two 
reactors axe still functioning at 
Chernobyl, after the- destruc- 
tion of tbs third reactor in tbe 
1986 disaster. 

• The EU and Us G7 partners, 
by falling in with Ukraine’s 
nuclear ambitious, on the evi- 
dence of tike EBRD/World Bank 
report face a greats* challenge 
than they have acknowledged. 

Western nuclear construc- 
tion companies, moreover, may 
balk at accepting contracts in 
the Ukraine because there is 
no legal regime to protect them 
from Hablllty in the event of 
accidents. Under international 
conventions, such a regime 
would have to be put in place 
with the consent of neighbour- 
ing countries. “They will not 
sort this question out in the 
near term," predicted Mr Ant- 
ony Froggatt of . Greenpeace. 
The west is playing with flre.“ 


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jjNANClAL TIMES WEEKEND JUNE 25/JUNE 26 1994 


NEWS: EUROPE 


Germany and 
UK press for 
free markets 


By Lionel Barber in Corfu 

Germany yesterday joined 
forces with the UK to press thp 
rase for deregulation and flexi- 
ble labour markets in the Euro- 
pean Union. 

The UK-German allismrp at 
the Corfu summit received 
measured suport from Mr Sil- 
vio Berlusconi, the new Italian 
prime minister. 

Mr Berlusconi called for less 
law-making from Brussels, 
though he told Mr John Major. 
Britain’s prime minister, at a 
breakfast meeting, that he did 
not support Britain’s apt-out of 
the social chapter of the Maas- 
tricht treaty. 

EU leaders - joined by 
their finance ministers - dis- 
cussed the European «y«wnmy 
in their afternoon session 
against the background of an 
incipient recovery but no si g n 
of a halt to the rise in unem- 
ployment 

Top items were the Euro- 
pean Commission's White 
Paper on employment, growth 
and competitiveness, including 
progress on starting major 
infrastructure projects known 
trans-European networks, as 
well as a report on the “new 
information society” in 
Europe. 

Leaders also discussed the 
Commission’s recommenda- 
tions on macro-economic 
guidelines, the framework for 
the 12 members of the Union to 
move toward a single Euro- 
pean c u rrency, to be joined by 
Austria, Finland, Sweden, and 
Norway if they enter the Union 
as planned next year. 

Mr Kenneth Clarke, UK 
filwupgllnr of the exchequer, 
praised the macro-economic 
guidelines, which call for wage 
restraint, budgetary discipline, 
and structural reforms of tits 
labour markets to create new 
jobs and lift burdens cm small 
business. 

Mr Clarke supported 
Germany's request for the 
establishment of an indepen- . 
dent group of businessmen and 
civil servants to examine 
whether EU and national legis- 
lation is imposing unn ecessa r y 


red tape an companies. 

Separately, the UK Chancel- 
lor a pitch for faster lib- 
eralisation of the European 

telpgnmm imlnatinng industry. 

Mr Jacques Delors, president 
of the Commission, avoided a 
re-run of last December's dash 
with finance ministers over 
funding of the trans-European 
networks. 

He th«m in Tifo bid to 
win support for greater Euro- 
pean Commission borrowing to 
fund thft multi-billion rail 
road projects. 

However, Mir Delors called 
for a “firm commitment” to 
start work on 19 “priority" 
infrastructure projects. 

These include 11 transport 
projects such the Channel tun- 
nel link in the UK; a 
high-speed rail and road link 
through the Brenner pass link- 
ing Italy, Austria and Ger- 
many; and an eastern EU 
high-speed train between Paris 
and Strasbourg, plus a link 
joining M unich. Leipzig and 
Berlin. 

In addition, there are eight 
multi-billion Ecus energy pro- 
jects mi-inifing gn underwater 
cable link between eastern and 
western Denmark; an underwa- 
ter electricity cable between 
Italy and Greece; and a natural 
gas line between Spain and 
Portugal, with energy supplied 
from Algeria. 

Aides to Mr Delors said the 
Commission president was 
most anxious to start work an 
the trans-European networks. 
If the so-called “financing gap” 
materialised, than the Commis- 
sion would be in a strong posi- 
tion to lobby for extra borrow- 
ing powers. 

British officials called for an 
in-depth analysis of the 19 pro- 
jects. 

There was no obvious short- 
age of capital for the networks, 
given the lead role of the Euro- 
pean Investment Bank, private 
capital and the newly estab- 
lished European Investment 
Fund. 

“If there are obstacles, they 
are of ati julminM niti vh, legis- 
lative Or planning nature,” Sfdd 
one UK offiriaL 



The survey will report on the 
important contribution made to the 
economy by ethnic minority 
businesses In the United Kingdom. It 
will examine how their future 
prospects will be affected by 
competition at home and from 
abroad, and how they are responding 
to the challenge of economic revival 
In the UK. 

For more information on editorial 
content and details of advertising 
opportunities available in this 
survey, please contact: 


ANTHONY G HAYES 
Tel: 021 454 0922 
Fax: 021 455 0869 


FT Surveys 


Kohl surges ahead of 
German election rival 


By Quentin Peel in Bonn 

Chancellor Helmut Kohl's 
Christian Democratic Union 
(CDU) has moved four points 
dear of its election rival, Mr 
Rudolf Scharping’s Social Dem- 
ocratic Party (SPD), in the lat- 
est German opinion poll, for 
the Gist time in three years. 

The two percentage point 
gain for the CDU and its 
Bavarian sister party, the 
Christian Social Union (CSU), 
mmpg just four Tprmths before 
the general election in October, 
and confirms tha trend in the 
recent European elections . 

At the same time, two polls 
showed a growing lead for Mr 
Kohl in the personal popularity 
stakes, reversing the consist- 
ent trend of recent months. 

However, the latest forecasts 


do not show any clear majority 
for either a left-wing or right- 
wing maiiHnn rn the general 
election, due on October 16, 
leaving the final outcome stfll 
very much in doubt 

The results of the Politbaro- 
meter poll, published last night 
by ZDF television, give Mr 
Kohl’s CDU/CSU 40 per cent 
support if there were national 
elections tomorrow, compared 
with 36 per cent - down three 
points - for the SPD. 

The very sharp reversal 
undoubtedly reflects voters' 
perceptions after the European 
poll an June 12, but does not 
include any response to this 
week's SPD party conference, 
which could see same recovery 
in the party’s fortunes. 

However, it augurs badly for 
the SPD’s hopes of winning the 


most seats in tomorrow’s elec- 
tion in the eastern state of 
Saxony-Anhalt, where the 
party hopes to win power from 
the CDU. 

As Ear as personal popularity 
is concerned, both Politbaro- 
meter. and a separate poll by 
the Forsa institute in the 
weekly newspaper. Die Woche. 
put Mr Kohl well in front of Mr 
Scharping. The former gives 
the chancellor 48 per cent sup- 
port, compared to 41 per cent 
for his challenger, reversing 
the 4ftSI per cent position in 
May. 

Die Woche’s poll gives Mr 
Kohl 42 per cent and Mr 
Scharpfng only 26 per cent, in 
response to the question: 
“Whom would you elect 
directly as chancellor?” 

Party loses footing. Page 9 


Exports pick up as 
inflation fall continues 


By Christopher Parkas 
In Frankfurt 

West German inflation is 
(vwtinning its slow decline as 
rniftigtriaT output and exports 
pick up speed, according to 
official figures pnMigbpH yes- 
terday. 

Consumer prices in the most 
populous state. North Rhine- 
Westphaha, rose at an annual 
rate of 2.8 per cent in the 
month to mid-June, compared 
with 29 per cent in May. The 
mnnth - on-Tnnn th rate of 0-2 per 

nmt has been unchanged «iwnp 
June. 

Similar trends were also 
reported in Baden-WQrttem- 
berg and Hesse, with yearon- 
year increases of 3 J per cent 
and with monthly rises of 0.3 
per cent and 0.2 per cent 
respectively. 

The sluggish trend is widely 
expected to remain broadly 


unchanged until September or 
October, when the annual 
inflat ion rate is expected to dip 
towards 2A per cent 

Economists said yesterday's 
preliminary figures supported 
their forecast of an overall 
annual rate for June of 29 per 
cent, compared with 3 per cent 
in May. 

Meanwhile, the automotive 
and steel industries reported 
rising output and federal sta- 
tistics office figures showed 
visible exports continuing to 
rise strongly. 

The VDA vehicle makers' 
g r oup said May passenger car 
production was IS per cent 
higher than g year ear her and 
exports were up 13 per cent 
Adjusted for the extra working 
day this year, the increases 
were 9 per cent and 7 per cent 

New car orders in May were 
also hi gher than in L993, w hile 
demand for commercial 


Power and coal 
sales postponed 


By Judy Dempsey in Berlin 

The Treuhand privatisation 
agency yesterday postponed 
completing one of its most 
ambitious sales of eastern Ger- 
many’s electricity network and 
of the last of the large brown 
coat or lignite, fields. 

Foil owing a Treuhand board 
meeting, the agency said the 
planned sale of Veag. east Ger- 
many's electricity network, 
and T .anhag , the giant lignite 
fields, might be completed 
“next week.” 

The Treuhand did not 
orpiaip the delay. 

Veag is to be sold to a west 
German utility consortium led 
by RWE Energie. Laubag, 
which will supply Veag with 
its brown coal, will be acquired 
by a consortium led by 
Rheinbraun. the 100 per cent 
brown coal subsidiary of RWE. 

The delay in completing the 
deal, despite pressure from 
Chancellor Helmut Kohl, is 
thought to arise fr om the buy- 
ers’ anxiety about prospects for 
energy consumption in eastern 
Germany. 


The two consortiums are 
increasingly concerned about a 
shift by east German domestic 
and industrial customers to 
gas, and about the pressure an 
electricity to compete with gas 
prices. For the moment, gas 
prices are significantly lower 
than electricity prices. 

These factors have repeat- 
edly affected the complex pri- 
vatisation negotiations for 
Veag and Laubag because their 
sales are tied to a comprehen- 
sive investment programme of 
DM41bn (£I6.6bn) over 10 
years. 

But any return on those 
investments depends on a sta- 
ble customer base. 

Part of the investment time- 
table entails the construction 
of two 8G0MW power stations 
at Lippendorf in the eastern 
state of Saxony-Anhalt 

Energy analysts yesterday 
suggested, however, that part 
of the investment programme 
might be cancelled, which 
would reduce brown coal sales 
to Veag and thus affect the 
sale mice of Veag. 


Russian budget 
given go-ahead 


By John Lloyd in Moscow 

The Russian budget far 1994 
passed both houses of parlia- 
ment yesterday - with leading 
members of parliament openly 
derisive of its feasibility and 
pwn wim Mit n ffmak admitting 
revenue was dropping and 
would drop farther. 

Deputies in both houses 
appear to have agreed to pass 
the budget to give the govern- 
ment a legislative base for 
spending - and to avoid being 
bogged down in exhaustive 
debates on the 500 amend- 
ments proposed. Mr Nikolai 
Gonchar, chairman of £be bud- 
get committee in the upper 
house, said the budget's tar- 
gets could not be met but some 
budget was better than none. 

Mr Yegor Gaidar, leader of 
tiie main liberal party, Rus- 
sia’s Oioice, told the In t e r fa x 
news agency that the spending 
and revenue estimates were 
“totally unrealistic" - though 
Ms faction voted it through. 

Hr Sergei Aleksashenko, 
deputy finance minister, said 
tax revenue was more than 
Rb$8,000bn (£2.8bn) down in 
the first part of the year and 
would drop further in the sec- 
ond - though other estimates 
pot the shortfall much higher. 

Military expenditure, the 
focus of the biggest straggle 


for Increases, has been set at 
Rbs40,000bn - up by 

Bbs2£00bn from the original 
figure but well below the 
Rbs55,000bn the military say 
is essential to maintain basic 
effectiveness. 

Figures produced by the gov- 
ernment show that the 
Rbs40,000bn would include 
Bbs22,i00bn for basic military 
financing, Rbs8,500bn for 
arms purchases, Rbs4,8C0bn 
for capital construction, 
Rbs2,500bn for scientific 
research and testing, and 
Rbst9Q0bn for pensions. 

• Anti-corruption crusader 
Alexander Lukashenko scared 
an upset victory over the 
prime minister in the first 
round of presidential elections 
in Belarus, sending shock 
waves through the former 
Soviet republic, Reuter reports 
fr om Minsk. 

Unofficial returns gave 45.1 
per cent of Thursday's vote to 
Mr Lukashenko, who drew big 
crowds with speeches pledging 
to drive bribe-takers from 
office. Fifty per cent was 
needed for first-round victory. 

Prime Minister Vyacheslav 
Kebich, who focused his cam- 
paign on a monetary union 
with Russia, was in second 
place with 17.4 per cent The 
two leaders face a run-off poll 
in two weeks- 


vehicles was starting to 
recover, the VDA said. Produc- 
tion of trades up to six tonnes 
during the month was 9 per 
emt higher than a year earfier. 
although output for the first 
five months was still down l 
per <wnt. 

The improvements were 
reflected in an 18 per cent 
increase in rolled steel produc- 
tion during the month. 

Although pan-German total 
visible exports and imports fell 
9.4 per cent and 10.5 per cent 
respectively during April, the 
statistics office noted there 
were four fewer working days 

than in Marrh 

On an annual comparison, 
exports rose 8.6 per cent and 
imports were 1.2 per cent 
lower. 

Thp trade halanra surplus of 
DM6bn (£2.43bn), unchanged 
on the month, was well up on 
the DM3_2bn recorded in April. 
1992 

Imports are expected to 
remain weak as domestic 
rinmand remains constrained 
by lower disposable incomes 
but foreign orders for German 
goods are still increasing 
sharply. 



The new Airbus 300-600 cargo aircraft, the biggest of its kind in the world and known os the 
Snper-Goupil. emerges from its hangar at Toulouse in France. It is due to fly in September fv-c. «■ 


Minister quits 
in Portugal 


By Jimmy Bums in London, 
Peter Wise In Lisbon and 
Bmma Tucker in Brussels 

Portugal’s junior minis ter far 
employment and training. Mr 
AntOnio Pinto Cardoso, has 
resigned after the attorney- 
general’s office began an inves- 
tigation Intn allegations of his 
involvement in the suspected 
misuse of European Social 
Fund money. 

The minister’s resignation is 
an embanasment for the cen- 
tre-right government of Mr 
Anibal Cavaco Silva, which 
prides itself on a reasonably 
honest record in using EU 
ftmds . It will also fuel contro- 
versy over alleged corruption 
in the use of social fund 
money. 

Mr Pinto Cardoso said in a 
statement that he had not been 
accused of any wrong-doing 
but was resigning to protect 
the good name of the govern- 
ment and to help investigators 
discover the truth. 

A Portuguese newspaper 
said yesterday officials were 
investigating a Esl26nr 
(£504,000) subsidy awarded by 
the employment ministry For 
the launch of a ma gazine pub- 
licising ESF-funded training 
courses. The report alleged 
that the subsidy was made 


from Portuguese government 
and ESF funds, with Mr Pinto 
Cardoso’s knowledge but with- 
out approval by the European 
Commission. 

The attorney -general. Mr 
Jose Cunha Rodrigues, and the 
head of Portugal’s judiciary 
police. Mr Mdrio Meades, on 
Thursday briefed a parliamen- 
tary commission on the prog- 
ress of investigations into sev- 
eral cases or alleged misuse of 
ESF funds. 

Mr Cunha Rodrigues said 
afterwards that he expected 
several important cases to 
come to court by the end of 
1994. Officials are investiga- 
tiing more than 400 cases of 
alleged misuse of ESF funds. 
So far. only 21 have reached 
the courts. Investigators com- 
plain of a lack of resources. 

Controversy over spending of 
ESF funds for training has 
been simmering for several 
years. Allegations of misuse of 
funds were the subject of an 
inconclusive parliamentary 
inquiry in Portugal last year. 

The European Commission 
said yesterday it had not given 
its agreement to finance the 
project in question and had not 
transfered the money to the 
Portuguese authorities. “We 
will investigate further,’’ said a 
commission spokeswoman. 


Deadline 
for labour 
in Italy 

The oew Italian government 
yesterday set onions a dead- 
line to agree on labour market 
reforms which would make it 
easier to hire and fire people, 
Reuter reports from Romo. 

Mr Pietro Larizza. head of 
the UIL, one of the country’s 
three national union confeder- 
ations said Mr Clemente Has- 
tella, labour minister, told 
them that the government 
wonld put legislation to parlia- 
ment by the end of next 
month, with or without their 
consent. 

Mr Silvio Berlusconi, the 
prime minister, who promised 
on taking office last month to 
create 1m jobs in the next two 
years, wants to make it easier 
for employers to take on tem- 
porary and part-time workers. 
Companies wonld also be able 
to offer rates of pay below 
onion minimoms to young 
employees and the long-term 
unemployed. 

However, unions fear that 
the new rales could let unscru- 
pulous companies replace 
existing workers with lower- 
paid labour. 

Unemployment is running at 
about 11-5 per cent of Italy's 
22m workforce, and union 
power has been diminished 
since the 1980s. 



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, to give yourself the best possible start, kick off with the FT this Monday. 

Times. Europe’s Business Newspaper. 







4 


FINANCIAL 


NEWS: INTERNATIONAL 


Beijing and London near HK airport accord 


By Simon Holbertan in Hong Kong 

An extraordinary week of 
Sino-British negotiations over Hong 
Kang’s future was capped yesterday 
when leaders of the Bri tish and Chi- 
nese teams instructed subordinates 
to prepare a draft agreement on the 
financing of the colony’s multi- 
billion dollar airport 
The UK and China have been 
arguing about how to flnanne the 
HK$158bn (£13-3bn) project for the 
past two years. Yesterday's com- 
ments amounted to the most positive 


sign to date that an agreement is in 
the nffing 

The intensive negotiations come 
ahead of the Hong Kong's Legisla- 
tive Council's vote next Wednesday 
on Governor Chris Patten's democ- 
racy legislation. 

Mr Hugh Davies, Britain's senior 
representative to the Joint Liaison 
Group (JLG). which oversees the 
transfer of sovereignty, said he 
hoped an agreement could be 
reached by Thursday or earlier. On 
Friday the Hong Kong government 
plans to ask the Legislative Council 


(LegCo) for HK$l5bn to start work 
on construction of the airport termi- 
nal and, runway. 

Mr Guo Fengmin. his Chinese 
counterpart, said the two had 
decided to entrust to experts the 
writing of "a draft agreement of the 
important points for representatives 
of the two sides to sign, making an 
agreement between the two sides.” 

There was optimism in the UK 
camp that the two would reach an 
agreement “I think we will get there 
in the end,” an official said, “but we 
have gone Into drafting and this 


takes time." The UK wants as 
detailed a statement as possible, 
while China prefers to keep it gen- 
eral. and officials concede that that 
provides plenty of room for cavffling. 
In particular, the UK wants a deal 
which bankers win lend against and 
this will require "clear evidence of 
China’s support” for the project 

The airport and its connecting rail- 
way will cost about HKgSSbn, 
HKj23bn of which has to be bor- 
rowed in international markets. 

To satisfy China’s concerns the 
agreement is also likely to contain a 


limitation on the aggregate borrow- 
ings of the corporations building the 
airport and its railway as well as 
enhanced oversight of the project’s 
cost effectiveness. 

No one is sure how long the draft- 
ing of the agreement will take 
githmi gh some pfflrfais suggested it 
could take longer than usual 

Drafting of the airport agreem en t 
is proceeding In parallel - with 
attempts to bridge the gap dividing 
the UK and nhtna cm the issue of 
military land in Hong Kong, in a 
surprise move on Thursday the JLG 


was suspended to allow experts to 
thrash out details of an agreement. 

The UK has already conceded that 
the People’s liberation Army will be 
stationed in Hong Kong’s business 
district and has agreed to build the 
Chinese navy a new port on Stone- 
cutters Tgfamrt tn Victoria harbour. 

The Hong Kong govern m ent will 
pay for work - estimated at 
HK$3J5bn - done on these facilities 
before 1997. But because the -UK is 
unable to guarantee that LegCO will 
a pp ro ve t h i s sum China.has asked 
London to Indemnify the work. 


Japanese trade surplus 
‘key to currency flux’ 


By Gerard Baker in Tokyo 

Economic fundamentals are 
the most important factor for 
exchange rate levels and will 
have to be addressed if the rise 
in the yen Is to he halted, Mr 
Yasushi Mleno, governor of the 
Bank of Japan, said yesterday. 

Market intervention alone 
could not guide exchange rates 
to desired levels, he added. 

At a speech at the National 
Press Club, Mr Mieno said 
Japan’s huge trade surplus 
often surfaced as a key factor 
behind the yen's rise and mea- 
sures to correct it were "the 
most important” In dealing 
with currency problems. 


Confusion over his remarks 
sent the dollar tumbling 
towards the Y100 level early 
yesterday in Tokyo before 
European and US markets 
opened. The governor's 
remarks were interpreted by 
currency traders as casting 
doubt on the effectiveness of 
central bank intervention to 
halt the yen's rise, and an 
admission that the bank's 
action to support the dollar 
had failed. 

Later, however, a Bank of 
Japan official s aid the markets 
had misinterpreted the gover- 
nor's remarks. Mr Mieno had 
said intervention was effective 
in stemming the dollar’s fall 


but it could not guide curren- 
cies to precise levels. 

In his speech, the governor 
said there were some benefits 
from the rising yen - it would 
help promote industrial 
restructuring as companies 
were confronted by the need to 
become more internationally 
competitive. 

He again expressed optimism 
about prospects for economic 
recovery, citing recent sharp 
increases in exports and per- 
sonal spending. But he warned 
that corporate investment 
would remain sluggish as com- 
panies continued to adjust to 
over-accumulation of capital in 
the late 1980s. 


N-fuel scheme faces cuts 


By Endko Terazono fai Tokyo 

The Japanese government is 
likely to cut back its ambitious 
nuclear fuel programme follow- 
ing an advisory panel’s call 
yesterday for a delay in pro- 
jects involving plutonium. 

Their report, which is a basis 
for the government's long-term 
nuclear energy policy, follows 
growing domestic and interna- 
tional concern over Japan's 
surplus of plutonium, a highly 
toxic fuel that can be used for 
nuclear weapons. 

Japan's nuclear recycling 
programme was adopted in the 
1950s when plutonium was 
regarded as a “dream fuel". 

The country's first prototype 


fast-breeder, named Monju and 
based on the west coast, began 
a self-sustaining reaction last 
month, using plutonium pro- 
duced at processing plants in 
Britain and France. Japan's 
first reprocessing plant, in 
northern Japan, is due to start 
operating at the end of the 
decade. 

Until recently Japan has 
resisted calls from domestic 
and international environmen- 
tal groups for curbs on its pro- 
gramme. However, mounting 
accusations that Japan 
intended to build nuclear 
weapons increased government 
anxiety. 

While the report calls only 
for a delay in various projects 













California # 
to vote on 
illegal 
immig rants 

By Jeremy Kahn 
in Wa sh i ngton 

Illegal Immigrants in 
California will be denied pub- 
lic education, h e al thcar e and 
frfhorr social programmes if the 
state passes an init iative 
which won enough signatures 
Qifai week to be . placed on the 
ballot in November. 

The vote could serve as a 
bellwether in other, states, 
such as Florida and New York , 
which also have a large num- 
ber of illegal aliens. 

California state "Sfaiak con- 
firmed that backera of the pro- 
posal — dabbed the "Save Our 
State” initiative- collected 
the more than fiOOJWO signa- 
tures necessary to pot the 
issue to a state-wide vote this 
autumn. 

The vote is shaping up to be 

a d i vis i ve political issue. Hr 
Pete Wilson* California's F 
incumbent Republican gover- 
nor, running for' re-election 
but behind in the. polls, 
endorsed the initiative last 
week. ' 

Mr Wilson’s Democrat oppo- 
nent, Ms Kathleen Brown, 
opposes theproposal, as do a 
number of prominent, dyil 
rfehis Tjtinn g rnnw. 

These critics have labelled 
the initiative discriminatory 
and racist as it primarily tar- 
gets Hispanic and ■ Asian 
mino rities . They have prom- 
ised to challenge the proposal 
an constitutional grounds if it 


linked to plutonium use, and 
not cancellation, it is a severe 
blow to the country’s nuclear 
lobby. 

The report proposes: 

• Postponement of the deci- 
sion to build a second nuclear 
fuel reprocessing plant until 
the year 2010, instead of 
launching the plant that year 

• Moving back the target date 
for when plutonium fast breed- 
ers will be put to commercial 
use by 10 years to 2030; 

• Postponement of construc- 
tion of the first demonstration 
fast breeder reactor to early 
next century; 

• Delay to plans to construct 
more than 20 light-water reac- 
tors by 2010 by about 20 years. 


A young boy salutes (above) as be stands 
beside a UN soldier overseeing the 
unloading of food aid in the Rwandan 
capital Kigali, which rebels yesterday 
attacked, Reuter reports from Kigali. 

Their mortars hit the Red Cross hospital 
and public market, causing dozens of 

camaltigs. 

Meanwhile, in government-held western 
Rwanda. French troops on a peacekeeping 
mission reached the north-western town 
of Gisenyi after several reconnaissance 
missions around the town of Cyangugn 
in the south-west 

A first unit, entering from Bukavu 
in eastern Zaire, spent the night outside 
the refugee camp of Nyaroshisiu near 
Cyangugn, checking conditions of the 


estimated 8,000 Tutsi refugees sheltering 
in fear of massacre at the hands of Hutu 

milttiawiwi 

The first misskm to an area where 
Tutsi refugees are In a majority was 
apparently intended to show that France's 
Operation Turquoise would be impartial 
despite past support for the Hutu 
govern m ent 

The commander of the operation, 
Brigadier Jean-Clande Lafoarcade, told 
report e rs as he left Paris for Zaire be 
was determined to use force if necessary 
to protect refugees from massacres which 
hove claimed half a mflHmi victims since 
April. "My mandate allows me to use 
force to protect ctviltans and I shall use 
it," he said. 


He expected his opponents to be 
disorganised gangs hunting refugees 
and n ot the Tutsi-led Rwanda Patriotic 
Front (KPF). The rebels have threatened 
to oppose the c on troversial United 
Nations backed operation, fearing that 
France would use ft to bark the Hxxtn-leti 
g overnm ent 

Paris, which launched the operation 
single-handedly because of lukewarm 
international backing, hasbecm at pains 
to make dear it wifi, not take sides in 
the civil war. 

In Geneva, the United Nations High 
Commissioner for Refugees backed the 
French intervention and said ft was 
bracing far a fresh erodes of up to 500,000 
people. 


Backers count among their 
ranks several current and for- 
mer immigration officials, 
including Mr Alan' Nelson, 
who ran -PSLtmmigraHnn 
and Naturalisation Service 
under the Reagan adudhhdra* 
ttacu •' 

Proponents say CaHfotnfa' a s 
public education, housing,, 
health, and social programme s 
are already stretched as Illegal 
aUens are e ntering the state at 
a rate of 2,800 a week. The 
. initiative would ease pressure 
oa CaHforafa’s budget. 

It would also require police, 
teachers and healthcare work- 
ers to report suspected Illegal 
immigrants to federal authori- 
ties. • 


Go-ahead likely 
for European 
atom-smasher 


NEWS IN BRIEF 


ransom 


By CGve Cookson, 

Science Editor 

Europe is on the brink of 
budding the world's most pow- 
erful atom-smasher. 

The council of Cem, the 
European particle physics labo- 
ratory near Geneva, yesterday 
voiced strong support for going 
ahead with the Large Hadron 
Collider, which will hurl 
atomic nuclei together at dose 
to the speed of light The LHC 
will recreate the conditions 
existing a millionth of a mil- 
lionth of a second after the Big 
Bang that created our uni- 
verse. 

Two of the 19 Cera members, 
the UK and Germany, blocked 
the final go-ahead as they were 
not satisfied with the financial 
arrangements for the SFr28fan 
(£1.2bn) project. They want 
France and Switzerland - the 
countries that would derive 
most economic benefit from 
Cem. as host states 7 to pro- 
vide extra funds. 

But council delegates 
expressed confidence that the 
budgetary issues could be set- 
tled quickly and the LHC 
finally approved later this sum- 
mer. 

Mr Hubert Curien, Cern’s 
chairman, said the French rmH 
Swiss governments bad given 
"very encouraging" signs that 
they would Increase their sup- 
port. 

Cem members also expect 
non-European countries - 
notably the US, Japan, Russia, 
Canada and India — to make 
substantial contributions, in 
return for their scientists 
working on LHC experiments. 


After the cancellation last 
October of the planned gllbn. 
(£7-2bn) US Superconducting 
Super Collider (SSC) in Texas, 
Cera has emerged as the undis- 
puted global centra for high-en- 
ergy physics. 

Ms Hazel O’Leary, US energy 
secretary, is expected to pro- 
pose measures to Congress 
early next month for mitigat- 
ing the effects of the SSC can- 
cellation on US physicists, 
through increased interna- 
tional collaboration. 

Cem officials believe that 
the US could contribute sev- 
eral hundred million dollars to 
the LHC. 

There are two reasons why 
the LHC would be much 
cheaper than the SSC. First, it 
will be squeezed into an exist- 
ing tunnel - a ring 27km in 
diameter beneath the Jura 
foo thills — that was h unt in the 
1980s for Cam’s current accel- 
erator, LEP. A new 87km tun- 
nel was being dug for the 
SSC. 

Second, the LHC nfil be less 
powerful than the SSC would 
have been. 

However, it will pack several 
times more energy into its col- 
lisions than LEP or the atom- 
smashers currently operating 
in the US - enough, scientists 
say, to discover several funda- 
mental facts about the forces 
and particles that determine 
the nature of the universe. 

The LHC’s most important 
single job wfll be to provide 
evidence to clear up the mys- 
tery of mass - what gives fun- 
damental particles their 
and why some weigh 'so much 
more than others. 


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In it you'll find the Financial Times Survey of Executive Cars - an essential 
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recession, at company car policies and at the impact of changes in the tax regime. 

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Venezuelans warned 
of economic controls 


The Venezuelan government is 
close to adopting "harsher 
measures" to deal with critical 
economic, finanrial and mone- 
tary problems, Mr Julio Sosa, 
minister of finance, told 
congressmen, writes Joseph 
Mann in Caracas. 

Mr Sosa, the leading eco- 
nomic policymaker in the 
administration or President 
Rafael Caldera, did not specify 
what these measures would be 


but he Indicated the adminis- 
tration could declare a “state 
of economic emergency”. This 
would give the executive 
branch the power to dictate 
extraordinary economic and 
financial measures to confront 
an economic crisis. 

Many Venezuelans, alarmed 
by a deteriorating economy, 
expect the government to take 
steps soon to impose price con- 
trols cm basic consumer goods. 


The lawyer of Mr AIfredo Harp Hetti, the kidnapped Mexican 
financier, said; an television that Ids ransom. would;, be paid, 
paving the way for the release of aneof the country's.weaHhiest 
men, writes Damian Fraserin Mexico City. -. - 

Mr Harp, the joint head of Banamrar-Actaval, the country’s 
largest bank, was seized in March. His kidnapping has been giron 
enormous publicity, .with Ids abductera sending the press a scries 
of emotional letters from the JEmftntiuer to Ids family and partners 
in which he pleaded for Ms lawyer made tire statement 

on Mexico’s main teleyiskm news programme, .accompanied by 
Mr Harp's son, and a repre se ntati ve of the Cathode .church, as 
demanded by the kidnappers- . 

The kidnappers said in their latest conurnmique that the ran- 
som demand had been T dropped to less than S3Qm(£L9.7m). Mr 
Harp’s lawyer agreed ip pay an unspecified amount, -and not to 
involve the police. 

The kidnappers havepremisedto release Mr Harp three days 
after receiving thp rtesom. . 

Bond faces art-fraud charges 

Mr Alan Bond, the bankrupt Australian h TBTfrnflggmflrij hflg lrvrf hfai 
application to delay the art fraud court case being brought 
against him, on grounds'of fll-bteatth. The case concerns four art 
fraud charges rotating to tire multi-million dollar acquisition and 
sale of La Promenade, a French Impressionist painting, while Mr 
Bond was a director of Bond Corporation in the 1960s, writes 
Nikki Taitin Sydney. ■ 

Mr Bond’s lawyers, who had asked for a six-month adjourn- 
ment, claimed that -Mr. Band was suffering from: depression and 
brain damage following opartreart surgery; and: was' not well 
enough to instruct solicitor} But Mr. Ivan. Brown, a'Pertfebased 
magistrate, said, yesterday that Mr Bond had daosen to ^end Ids 
timeccaBhicthagbuBinasstransffiitiohs,ratfattthan-p!QarmgfiH- 

the ftaud proceedings, and ruled that the case should proceed as 
planned an July 18. 

Cash pledge for Aral Sea 

Inte rnation al donors yesterday pledged' f3L4m (£206m) to study 
ways to stop the Aral Sea in central Asia drying pp.lt used to be 
the world’s hugest fresh water lake before shrinking oy^ thw 
past 30 years to half its original, size Of 890,000: sq. km, David 
Buchan reports from Raris. 

The money is to ftoid' feasibility studies for a. larger $220m 
mvestme^ iHt«ranxme, designed to try to rest6re the flow of 
river water into the lake and to counter gnvr mnnymtal damage 
by stemming the Wowing of tpxfo^aftsfrten tiie exposed .-seabed 
on to surrounding towns , and cropland . : - 

The cash pledges were made at a. meeting hi ^ Paris yesterday 
chaired by the WarldBank, of -various governments and Internal 
tional organisations. ' 

Fiji to review constitution 

Fiji is to set up a joint . select committee to help review the 
country's radally-hiased constitution, writes Nikki Tfcit. ' 


Mr SUlveni R ahnka r now FSS’s prime minister,- ensures that 
i n d igenous Fijians have * majority. In parifainent at ffie expowe 
of the large Indian population. 


the constitution "by 1997. However, Mr Rabuka’s arnniitimmi to 
the process has came into question. 'receWiy, after the prime 
minister warned, that another coup could take .place if mans 
continued to . feel disadvan t ag ed . His remarks prompted I nfflsw 
political leaders to boycott parhamani for several days. . 

The move an a joint aetect c ommitt e e, announced yestenfav 
appears to be an effort to allay these fears. One.of Us tasks win be 
to advise FflTs cabinet-on the size and membership nf ^ 
tiiHnnal c nm minBinn foatrtf •••«.. wu*a- 












.V;»V 







^mrm. 




FINANCIAL times WEEKEND JUNE 25/JUNE 26 1994 


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^ciaI TIMES WEEKEND JUNE 25/JUNE 26 1994 


NEWS; UK 


Hanson writes to Major on dividends 


By Roland Rudd 

Lord Hanson, chairman of the 

AngJo-US conglomerate Hanson, h as 

urged the prime minister in a letter to 
keep a firm hand on the Treasury's 
review of dividend taxation. Hanson 
donated £100,000 to the Conservative 
party in its last financial year, which 
ended in September 1993. 

He expresses relief in the letter that 
Mr John Major appears to be taking 
charge of the study into savings and 
investment. Lord Hanson recently 


Ministers 

demand 

early 

reshuffle 


By Kevin Brown 
aid DavM Owen 

The prime minister faces 
grow in g pressure from senior 
ministers to bring his planned 
cabinet reshuffle forward to 
next week. 

Mr Major is believed to 
favour postponing the reshuf- 
fle until mid-July to minimise 
the scape for Commons state- 
ments by dismissed ministers 
before the House rises for the 
summer recess. 

However, ministers say that 
departmental decisionmaking 
has been virtually paralysed by 
uncertainty about the scope 
and extent of the reshuffle 
Since Mr Major «Harin«eri his 
intentions at a Downing Street 
press conference two weeks 
ago. As reshuffle fever spread 
at Westminster, MPs pointed to 
the careful wording of Mr 
Major's comments - which 
explicitly ruled out only the 
following two weeks - as 
evidence of an impending 

aniimmiimimt 

Downing Street officials 
added to the growing expecta- 
tions by refusing to role out a 
reshuffle next week. However, 
a senior official was careful to 
keep open, the option of a latar 
date. 

There was renewed specula- 
tion that Mr Michael TTeseitfne, 
the trade and industry secre- 
tary, will replace Sir Norman 
Fowler as Ctmssvative party 
chairman. Mr Heseltine has 

made clear that he wants to 

remain at the trade and indus- 
try department, which he 
believes has suffered from too 
many changes of senior 
ministers. 

However, he attended a 
secret meeting of the rightwing 
No Turning Back group on 
Thursday at which he is 
believed to have been pressed 

tO accept the chairmanship in 
the party interest 

Such, an appointment would 
be popular with rank-and-file 
MPs, who believe that Mr 
Heseltine is one of the few cab- 
inet ministers with the politi- 
cal $irpiq to the image of 
Mr Tony Blair, the likely 
winner of Labour’s hwiiersWp 
election. 

The government's fear of Mr 
Blair was underlined by a con- 
certed attack on the shadow 
home secretary by a raft of 
cabinet ministers including Mr 
David Hunt, employment sec- 
retary, and Mr John Redwood, 
Welsh secretary. 

Mr Redwood, in an acidic 
statement distributed at West- 
minster, said Mr Blair was a 
“snappy dresser” whose per- 
sonal manifesto issued on 
Thursday mixed “the bland 
and the obvious with the 
ambiguous". 


accused Mr Stephen Darrell, Treasury 
financial secretary, in a letter of 
“sounding like a socialist” in ques- 
tioning Hi** wisdom of high dividends. 
He insisted that the issue of dividends 
was one for sburiwiHws ami their 
companies alone, and not the govern- 
ment 

Lord Hanson’s latest letter has irri- 
tated some ministers who support the 
Treasury’s review of savings, “in 
urgi ng the prime minister, as First 
Lord of the Treasury, to take charge 
of the review, Lord Hanson is 


interfering in government policy,” a 
minister said. “The Treasury has a 
good point over dividends and the 
prime minister will not be put off by 
Lord Hanson.” 

Lord Hanson has been encouraged 
by Mr Major’s recent interview in The 
Daily Telegraph in which be said 
there was no question of dividend 
control from a Conservative govern- 
ment “Dividend control is so cialism ,” 
the prime minister said. *T m a T ory; 
dividend control is a non-starter.” 

Mr Major appeared to restrict the 


Treasury’s room for manoeuvre by 
dismissing the argument that high 
dividends prevent capital investment. 

ffansnn, which is one of the Conser- 
vative party’s biggest company con- 
tributors and has donated more than 
£800,000 Since the Tories came to 
power in 1979, said it was only bring 
s upp ortiv e of the prime minister . 

Mr Christopher Collins, a director 
of Hanson, sairC “Haying seen the 
prime minister's interview. Lord Han- 
son wrote a private and friendly letter 
to say how pleased he was with the 


line he took in the dividend issue.” 

The Treasury angered Lord Hanson 
by suggesting that UK divided pay- 
outs. which have risen significantly 
during the past decade, may have 
become too high and inflexible. 

Mr Dorrell said the Treasury 
decided to review savings and Invest- 
ment to see whether the rise in divi- 
dends bad come about because of the 
tax structure set by the government. 
“After 15 years of deregulation, 
there's no question of us regulating 
dividends,” Mr DoneU said. 



When the curtain rises this 
afternoon on a gala perfor- 
mance of Tristan und Isolde at 
the new Festival Theatre in 
Edinburgh, the event wiQ have 
more than theatrical signifi- 
canc e. 

Nearly half a century after 
people first began to campaign 
for it, Edinburgh has finally 
created an opera house. But its 
opening is only the most spec- 
tacular of a number of develop- 
ments which will strengthen 
the city’s economy end demote 
strate that it hag finally 
shaken off the complacency 
and self-deprecation that previ- 
ously obstructed progress. 

“There’s been a huge change 
of mood," says Mr David Nicoi- 
son, president of the city's 
chamber of commerce and 
local managing partner of 
KPMG Peat Marwick, the 
accountants. “I’ve lived hare 
all my life, and what’s happen- 
ing is dramatic.” 

As well as the new theatre, 
PAtnb nrgh win next year finfah 


A number of building developments are about to 
boost Edinburgh’s economy, Janies Buxton writes 


a long-postponed project to 
build a csnm conference centre 
that will seat 1,200 people. This 
summer a £37m scheme to 
rebuild and expand Murray- 
field rugby stadium will be 
concluded, largely financed by 
debentures sold to rugby sup- 
porters. 

Much of the financial com- 
munity has moved or is mov- 
ing into larger new office 
buildings, fining l ongstanding 
gap sites near the city centre - 
but unfortunately leaving the 
Georgian Charlotte Square half 
empty. Some are moving from 
the centre to the city's western 
fringe, and much of the Scot- 
tish Office is moving to former 

dnrlriaml in T«th. 

the change in attitude began 
cautiously in the mid-1980s, 
with a crucial role being 
played by Edinburgh District 


fWmHi which came under the 
control of a group of Labour 
party pragmatists. 

It reversed past opposition to 
fostering the financial sector, 
Edinburgh’s biggest employer, 
began issuing planning con- 
sents more freely and organ- 
ised schemes to develop its 
own considerable land hold- 
ings in the city. 

Mr Nicolsan believes a piv- 
otal role in speeding the city's 
development has been played 
by Lothian and Edinburgh 
Enterprise (LEEL), the local 
enterprise company formed in 
1991 after the break-up of the 
Scottish Development Agency. 

T.RRT. marshalled the ener- 
gies of Edinburgh district and 
Lothian regional councils and 
applied funds from its substate 
tial budget to push through thg 
difficult projects. “The most 


important thing was that 
LEEL decided that the Festival 
Theatre and the conference 
centre were going to happen,” 
says Mr Ntaflion. “For years 
people had always found rea- 
sons far not doing them.” 

I.EEL has led the Festival 
Theatre project, encouraging 
the district cocmcfi to purchase 
the defunct Empire Theatre. 
This has been convert e d, at a 
cost of £22m, into a modem 
opera house that would have 
cost £50m to buiM from scratch 
and has a stage bigger than 
Covent Garden's in Tonrirm. 

Other money came from 
LEEL, public-sector bodies 
including Lothian region and 
the Scottish Tourist Board, 
while the private sector has 
raised £4m. 

Will the theatre succeed, and 
has Edinburgh really changed? 


Sale paves way for out-of-town retail site 


By Vanessa Houkler, 

Property Correspondent 

Blue water Park, a L625m sq ft 
shopping and leisure develop- 
ment at Dartford in Kent, Is set 
to proceed as a result of the 
«qT« of the development rite to 
Lend Lease, an Australian 
property company. 

The scheme, which is expec- 
ted to cany a value of £500m- 
£600m on completion, is likely 
to be the last of the giant 
regional shopping .schemes to 
be buDt following the govern- 
ment's crackdown an planning 
permission for out-of-town 
developments. The conditional 


Local planning authorities in 
England received 123,009 
applications for planning per- 
mission and other related con- 
sents in the first quarter of 
Oris year, 5 per cent more than 

sale of the site by Blue Circle 
Industries to Lend Lease 
years of speculation about the 
project's viability. Work is 
expected to begin later this 
year or early in 1996. 

Lend Lease, which operates 
80 shopping Bmtr ai in the D5 
and Australia and has £6bn of 
funds under management, is 
con fi d en t , ft can put together a 


for the corresponding period 
In 1993. It is the third succes- 
sive quarterly increase in 
planning applications, govern- 
ment figures show. 

There were small quarter- 

consortium of investors to fond 
the scheme’s £300m construc- 
tion costs. The Prudential, the 
life assurer, said yesterday that 
it was “seriously considering" 
investing about £100m in the 

Brhomp 

Bluewater Park will be in 
head-on competition with one 
of the UK’s largest existing 
shopping centres at Thurrock, 


on-quarter increases In appli- 
cations in all regions except 
the north-west, where there 
was a 5 per cent ML The larg- 
est increase - 10 per cent - 
was in Greater London. 

Lakeside, just 10 miles away, 
which is owned by Capital 
Shopping Centres. The 
scheme’s promoters say that 
the river Thames, which runs 
between the two, win act as a 
natural divide. Moreover, they 
believe that demand, thought 
to embrace 6.5m people within 
45 minutes drive time. Is 
enough for both 


The government’s decision to 
restrict out-of-town de velop- 
ments in order to protect town 
centres has made it easier for 
the Bluewater scheme to 
attract investors because the 
policy is KJcely to add value to 
schemes that have already won 
planning permission. 

The decision by Blue Circle 
to sell its 230*cre site for £50m 
marks a decision that property 
is net part of its core business. 
The company, which has 20.000 
acres of land surplus to its 
needs, will make a pre-tax 
profit of somewhere between 
£24m and £89m from the devel- 
opment over several years. 


£667m current 
account deficit 


surprises City 


ByPMfr ODMUb 
Economic* Conw 


E dinb urgh's Festival Theatre, which opens today with a gala performance after nearly 50 years of campaigning for an opera house in the dty Photograph. The Scotsman 

Opera house sounds note of change 


The UK’s current account 
deficit in the first quarter of 
this year was just SEGftn - Its 
best performance for seven 
years, the Central Statistical 
Office *»\a. 

The main reason for the 
improvement was that tin 
hwWhtaa surplus rose sharply 
to £2.4hn, Its highest level 
since the first quarter of 1966. 

However, part of the 
improvement was due to a rise 
in net investment income, a 
statistic which Is particularly 
volatile. The CSO said that net 
inv e stm ent Income in the first 
quarter amounted to £2.0ltn. 
the highest ever figure, 
compared with £l.l3hn In the 
pterions throe months. 

fa particular, the financial 
sector Increased its overseas 
earnings while the UK earn- 
ings of foreign banks Ml 
sharply. 

There were also improve- 
ments in the other trade 
components. The deficit on ris- 
ible trade fell slightly to 
£3,07bn. from £3.5fibn in the 
fourth quarter of last year. The 
value of exports was iS per 
cent higher than fa the previ- 
ous quarter, while toports rose 
by just 1 percent 

The surplus on services 
increased to £X.68ba, from 
£L47hn in the fourth quarter at 
last year. However, the UK 
continued to have a deficit on 


travel which amounted to 
£853m In the first quarter. ‘ 
Analysts welcomed the cur- 
rent account figures, which 
ware much better than expec- 
ted, hat expressed caution 
about the quality of the data. 
“The Hhehnood must be that 
fixture revisions will he 

advene," said Mr Ian She- 
phantom. UK economist at 
Midland Gtobel Markets. "He* 
erthetem, thereto a hagl ctafr- 
ion even if reri rie ps an bfc" 
According to the CSO, the 
UK's balance sheet texpnraed 
substantially over the quarter. 
Net external asaate were 
Ltalbn at the end M March, 
compand with £22.%n at the 
end of December fata . 
^T beflgage ^oja pertiait 

firet quatter^fraaqtf^ *fa 
response to the lift In world 
bond and equity n uefa i t t 
Banks, having bought 
EULTfcn of ovn ea l roearttto* 
fa the fourth quarter of tost 
year, sold taTbKtetfate yea rt 
first quarter. Gfipr ftaapsial 
inatituti oa e sofa p &aBm of 
o vers eas securitise fa tin fast 
quarter, compared with m 
purchases of £3SA6ta fa the 
test throe moaths df jsbS, 
Meanwhile. ownm ud 
dants continued to bay gifts 
and UK Shares. to 

fa Hie "rot writer, 
compared with ouabain tee 
final throe months ofteR. - 


Lord Younger, fanner defence 
secretary and chairman of the 
Festival Theatre Trust, betrays 
a slight anxiety when be says: 
“IH be fixlly convinced only 
when I see Edinburgh people 
taming out for a performance 
on a cold mid-week February 
night" 

Another £2m is needed from 
private-sector businesses and 
individual donors - the latter 
have already contributed more 
than £700.000. “The list of 
donora is impressive.” says Mr 
Nicoison, “but if you eramtne 
it closely you will see gaps.” 

While leading Edinburgh 
businesses such as Royal Bank 
of Scotland, Bank of Scotland 
and United Distillers are large 
contributors, only three of the 
five Edinburgh-based life 
assurance companies feature 
in the list “I cant understand 
why some companies are not 
more supportive whan they see 
the benefits these projects are 
bringing the city." says Mr 
Nicoison. 


Rising incomes 
bolster savings 


By PMfa Cogged 

Buoyant persona] incomes 
allowed consumers to continue 
spending in the first quarter of 
this year without reducing 
their savings, tin Central sta- 
tistical Office said yesterday. 

At the start of the year many 
economists thought that 
because of tax rises the recov- 
ery would only be sustained if 
consumers cut their savings fa 
order to finance spending. 

However, the savings ratio - 
savings as a proportion of total 
personal disposable income - 
rose slightly to lfi.4 per cent in 
the first quarter, from a 
revised 103 per cent in the 
fourth quarter of last year. 

Income from employment 
rose by 2.1 per emit over the 
quarter, helped by bonuses and 
overtime payments which have 
been visible fa the average 
earnings figures. After deduct- 
ing taxes, the result was that 
total personal disposable 
income was per cent higher 
than fa the previous quarter. 
That allowed consumer expen- 
diture to rise L4 per cent over 
the quarter. 

Overall, gross domestic prod- 
uct rose by 0.7 per cent over 
the quarter (or 0.6 per cent if 
oil and gas are excluded), con- 
firming earlier estimates. How- 
ever. first-quarter GDP is now 
estimated to be 2J9 per cent 
h igh er than fa the first three 
TTKmths of last year, compared 
with the Z6 per cent published. 

The change is due to revi- 
sions in the 1993 data, which 
show that growth was slightly 
fester in ftie second half of the 


year than was previ o usly 

Corporate finances ware 
healthy over the quarter. The 
financial surplus of industrial 
end eoopndta at 

ettete, was the higheat m 

recorded, (from trading profits, 
before deducting stock 
atton, wan 15 per cent nigijr 
over the quarter and 13.4 Jgr 
cent higher than in the sates 
period of USB. 

Fixed investment rose by gl 
par cent over the quarter stei 
was &2 per cent higher than* 
tbs first quarter of last jest 
However, this I n ve s tment was ? 
concentrated in tbe eectorof 
Industry consisting largely of 
government bodies and banks. 
Investment fell in 
tag. mining and quarrying and 
in the electricity, gas apd 
water industries. 

The value of stocks and win 
fa progress fell by 1449m fa fee 
first quarter, haring item for 
£i57m in the fourth quarter of 
last year. Stocks rose fa tbe 
manufacturing and wholesale 
sectors but fell fa other anfjs. 
such as retailing. 

Tbe implied G UP deflator; a 
measure of *nfb»Hhn oanpH ifl 
by averaging the prices of tbe 
goods and services which make 
up GDP, rose 0 l 8 per cen t in 
the first quarter, compared 
with an earlier estimate of As 
par cent The deflator was &3 
per cent higher than in the 
first three months of 1998. 

The Improvement in tip 
trade balance edited about 0.4 
per cent to first quarter GDP, 
although this was effect by the 
effect of destocking. ’ 


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Fund for job-loss claims rejected 


By John Authors 

The government yesterday told 
local authorities it would not 
set up a compensation sghemw 
for former council employees 
who lost their jobs under con- 
tracting out. 

The European Court of Jus- 
tice ruled this month that 
these redun d an ci es may have 
violated European Commission 
directives. 

Councils fear a compensa- 


i 'I I. 


with potentially high legal 
costs. They were outraged 


by the government decision. 

Tbe European Court said 
British employers had a statu- 
tory duty to consult employees 
when transferring them from 
one business to another - 
under 1975 and 1977 directives 
which had not been Incorpo- 
rated into British law. 

It confirmed the right of far- 
mer local authority employees 
who had been made redundant 
to sue for compensation, as the 
UK had not extended the 


tection of Employment) regula- 
tions - known as Tups - to the 


public sector. Tupe dictates 
that workforces 

be transferred on existing pay 
and conditions when a busi- 
ness is taken over. 

Mr Tony Baldry, environ- 
ment minister, said fa a letter 
to Six Jeremy. Beecham, chair- 
man of tile Labour-controlled 
Association of Metropolitan 
Authorities; “There Is no ques- 
tion o$ the government s etting 
up a compensation scheme.” 

He said the only practical 


mmmmnmw m m V4 H4U WMLk 0 J UU|' 

meat related to the "narrow 
point” on staff consultation. He 


added: “It is. of caurs& open to 
anyone who believes that they 
have a case for comiMiatfcii 
to pursue this through the 
legal processes, and tawed 'a 
number of writs have been 
served against th& govern- 
ment,” 

Sir Jeremy, who had 


set up * compensation fund, 
said: "The government has 
consistently tried, to under- 
mine the impact of EurCpton 


avoid its res] 
worirers who 




EU agrees plan to aid Merseyside 


By ten Hamilton Fazsy, 
Northern Correspondent 

A five-point plan to regenerate 
Merseyside’s economy - 
including subsidised interest 
rates for small businesses - 
has been agreed between the 
UK and the European Union 
after months of controversy 
and negotiation. 

The plan will be the basis for 
spending nearly £S30m of EU 
funds resulting from Mersey- 
side's Objective I status, which 
was granted last year. UK 
public-sector sources will 
m at ch the sum. The combined 


£L26bn is expected to attract 
more from the private 
rector. 

Although details still have to 
be approved by the European 
Commission next month, the 
government yesterday pub- 
lished guidelines on the type of 
projects that might be ftmded, 
with details of how 
applications should be 
made. 

A plan For disbursing the 
money, with much going on 
training, was rejected by Brus- 
sels fa April as vague. The new 
plan picks five main “drivers” 
of economic change. These are; 


• In the big-company sector 
projects will relate to prepar- 
ing and servicing for com- 
panies and inward investors. 
Infrastructure spending will 
also be provided. 

• Small and medium-site 
enterprises will be encouraged 
to grow, with EU money help- 
fag to fond training, sendees 
and advice through training 
and enterprise councils and 
Business Links. There will to a 
Marreysidfl Special Investment 
Fund, ret up by tha clearing 
banks but with EU money used 
to subddtea interest rates for 
business loans. 


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• Knowtedgetaaed i ndust ri es 
will be encouraged, with gw 
dal attention to technology 
transfer between Meaqrridrt 
two universttiee and todas&y- 
One idea is a gradflate- 
retention programme with 
local industry, to keep more 
qualified people fa the ana. - 

• The arts, cultural aeodtotfr- 
ism rectors win be encouraged. 

• Initiative* will concentrate 
on training and systematic 
development of human 
resources. Inner-city . and 
writl-problem aroas. smds.as 
outer estates with fash totem- 
ploymeni, will be targeted, :• 




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NEWS: UK 


Limits on amount of compensation to investors were illegal 

Ruling to benefit elderly 


By Bethan Hutton 

Elderly victims of poor 
financial advice which ad dle d 
thmi with enormous debts are 
entitled to more compensation, 
the Court of Appeal ruled 
yesterday. 

The court ruled that the 
Iny e stors Compensation 
S cheme was wrong in mring its 
discretion to limit compensa- 
tion to investors in home 
income plans. It may have to 
pay an extra £20m in addition 
to the £2JL5m compensation it 
has already paid to more than 
L8Q0 investors. 

The ICS is expected to appeal 
to the House of Lords. It said 
yesterday the ruling would 
force it to change from a low- 
cost, fast, info rmal compensa - 
tion scheme to a len gth y ^ 

Heseltine 
ready for 
postal 
sell-off 

Mr Mich ael H eseltine, trade 
and industry secretary, ha« 
resolved Us differences with 
the prime minister over the 
drafting of the green paper on 
the future of the Post Office, 
now expected to be published 
nest week, Roland Rudd 
writes. 

Mr John Major rejected the 
first draft, believing Hr 
Heseltine had not given suffi- 
cient weight to the option of 
leaving the Post Offiro com- 
pletely in the public rirwnairt- 
However, the Department of 
Trade and Industry believes 
its preferred option of nailing 
51 per cent of shares in Royal 
Mail and Parcelforce is still 
given prominence over the 
other two options. 

These are to make the Post 
Office more commercialised 
within the public sector or to 
sell 49 per cent of the shares 
in Royal Mail and Parcelforce. 

Mr Heseltine wants 10 per 
cent of the shares reserved for 
the workforce, the maximum 
number allowed under stock 
exchange rules. 

Unofficial mail 
dispute spreads 

Postal services may be dis- 
rupted in many areas today 
after an unofficial strike by 
postal workers which esca- 
lated from a local dispnte over 
staffim*. 

Mount Pleasant, the biggest 
sorting office in London, was 
hit by the walkout, as were 
offices in Romford, Dagenham 
and Ofardt in Essex, Dunstable 
and Bedford - and Milton 
Keynes, where the dispnte 
began earlier this week. 

The Royal Mail said yester- 
day that it may take proceed- 
ings against the UCW commu- 
nications union following an 
fojunction against it requiring 
it not to take Industrial action. 

Firefighter strike 
vote overwhelming 

Firefighters on Merseyside 
yesterday voted overwhelm- 
ingly to strike in a dispute 
over new conditions and 
allowa nc es. 

In a ballot the 1,500 fire- 
fighters - already on 999-duty 
only - voted 84.1 per cent in 
favour of a series of one-hour 
all-out strikes. 

Mr Ken Cameron, the Fire 
Brigade Union general secre- 
tary, hopes to a d dress the 
annual meeting of the Fire 
Authority on Monday to avert 
the action. 

Football club gets 
seating extension 

Newcastle United .w£Q be the 
only Rn gHah Premier League 
club where some fans will 
stand on terraces next season. 

Mr Peter Brooke, national 
heritage secretary, said yester- 
day that he had given a year’s 
extension to Newcastle United 
after it “presented a suffi- 
ciently exceptional case". 

But he confirmed his earlier 
decision not to grant extra 
time to Barnsley. Chelsea, 
Manchester City, Oldham or 
Swindon. 

All premier league and first 
division dubs were given until 
this summer to convert their 
stadiums to aH-aeater follow^ 
ing the 1989 Hillsborough 


highly legalistic one, where 
legal precedents would have to 
he set for each new type erf 
case and clahnanta mig ht waari 
legal re^xesentatian. 

“While today’s group of 
investors will benefit, we thfofc 
ultimately investors will 
suffer," said Mr David Cres- 
swefl of the ICS. 

Those affected by the appeal 
ruling are unlikely to receive 
additional compensation until 
all legal channels have been 
exhaus ted. 

Home income plans were 
widely sold during the housing 
boom of the late 1380a. They 
enabled householders, often 
elderly, to mortgage their 
homes and invest the proceeds 
in income bonds, which were 
supposed to pay the interest on 
the mortgage and provide an 


fldrHHnnaT frnmmg Some plane 
used roH-up mortgages, which 
added the interest to the total 
debt 

A combination of faffing 
house prices, rising Interest 
rates and declining investment 

returns left many investors, 
who bad not been warned of 
the risks, with huge debts 
and no means to pay the 
interest. Some have lost their 
homes. 

Many of the financial advis- 
ers who stdd the plana are no 
longer In business, so investors 
turned to the ICS for campen- 


Yesterday’s ruling was on an 
appeal brought by lawyers Bar- 
nett Sampson, an behalf of two 
representative investors. It 
covered three main points; 

• Whether the ICS had discre- 


tion to reduce compensation to 
what it considered fair. 

• Whether the ICS could 
deduct from the compensation 
any mosey received firm the 
plan and spent by the 
plaintiffs. 

• Whether the ICS could law- 
folly limit compensation for 
solicitors' and accountants’ 
foes to £500. 

The Court of Appeal ruled 
against the ICS on all three 
points. 

The judgment’s wider impli- 
cations are that it requires the 
ICS to take all relevant factors 
into account for each case, in 
the same way that a court 
would. The ICS would no lon- 
ger have discretion to set a 
formula for compensation, or 
set limits other than its stan- 
dard overall limit of £48,000. 


Farm wages victory 

Some 20,000 part-time women 
agricultural workers have won 
a concession from the Agricul- 
tural Wages Board that they 
should qualify for parity on 
pay and conditions with 
foil-time agricultural workers, 
(he TGWU genera 1 union said 
yesterday. 


Lords slam £4m legal 
aid for businessman 


By Robert FOce, 

Legal Correspondent 

The government may change 
the legal aid rules after the 
revelation that a wealthy busi- 
nessman has received more 
than £4m in legal aid to fight 
an embezzlement action 
brought by his former employ- 
ers, the Arab Monetary Fond. 

Dr Jawd Haahfan, a former 
president of Middia East-based 
AMF, is being sued for £33m he 
allegedly siphoned off from the 
fond into private Swiss bank 
accounts. 

The disclosure in the Lords 
an Thursday by Lord Rodger of 
Earisferry, the Lord Advocate, 
that Dr Hashim’s legal battles 
with the AMF had so for cost 
the British taxpayer £4J)lm in 


legal aid, caused outrage 
among pears. They demanded 
to know how someone who 
owns six luxury homes around 
the world can be aiigiMa for 
legal aid. 

The Legal Aid Board said it 
could not talk about the specif- 
ics of Dr Hashim’s case, but 
that it might recover soma or 
all of the money if Dr TTashhn 
won the action. In general, 
anyone is entitled to legal aid 
regardless of nationality if they 
are a party to proceedings In a 
British court, it said. 

Bat to get legal aid an appli- 
cant must be financially eligi- 
ble and must satisfy the board 
that be has a reasonable legal 
case. RH gihntiy is determined 

by the Benefits Agency, which 
will investigate an applicant's 


means. Normally someone 
With Dr Hashim’s assets would 
not qualify for aid. But the 
agency must disregard assets if 
they are haing niaimod by the 
other party in the proceedings. 

As the AMF Is claiming ftnm 
from Ik Hasbim , the agency 
could disregard assets up to 
that flnwnnt rn rmwpring hk 
means. Also If a person’s assets 
have been frozen by a court 
the agamy cannot take them 
into account An injunction 
freezing the assets of Dr 
Hashizn and his wife was 
granted to the AMF at the start 
of the case. 

The Lord Chancellor’s 
department said the issue of 
whether people in Dr Hashim’s 
position shmiM be aH gfhla for 
legal aid was under review. 


Warning 
of split 
after win 
by Blair 

By Kevin Brown, 

Pofiflcal Correspondent 

Labour faces an inevitable split 
if Mr Tony Blair, the party's 
leading moderniser, wins toe 
leadership election, leftwing 
MFS warned yesterday. 

Most leftwingers privately 
accept that Mr Blair, the 
shadow home secretary, will 
win the election, in spite of 
deep misgivings about his 
modernising approach. 

They said Mr Blair was 
unlikely to face problems from 
the left in the short-term 
because of the overwhelming 
s up port «nerg m g for him on 
the centre and right of the 
party. 

But influential members of 
the hard-left nampaigw group 
said his “social democratic 
agenda” would lead to a "huge 
internal conflict” with the left 
and the unions in the first year 
of a Labour government 

"He will win because people 
will agree that he is the pretti- 
est of the pack and that be can 
get Labour into Downing 

Street” nnp leading flawipaig n 

group member said. 

"But once he is in nffiw* the 
people in the press who have 
created hhn will not be seen 

Within a mfllinn mltot of him | 

and he win be in really deep 
trouble. 

"After a year of Labour 
government the public will be 
demanding something differ- 
ent and they win measure the 
success of the government in 
terms of jobs and growth. 

“If Mr Blair is s tiff hi firing 

about community values and 
saying that we cannot have 
full employment because of 
Gatt or the European Union, 
people win turn on hhn and 
blow him apart” 

More moderate leftwing 


Sinn Fein considers ceasefire 


By Tfan Coone bt DubBn 

Sinn Ffein, the political wing of 
the IRA, says that almost 40 
per cent of submissions wiatfa 
to its Peace Commission, 
which held public hearings ear- 
lier this year, believed that it 
should encourage the IRA to 
call a unilatera l ceasefire. 

Publishing a report an the 
commission’s findings in 
Dublin yesterday, Mr Fat 
Doherty, Sinn F&n vice-presi- 
dent, said: "We win have to 
take on board the views of peo- 
ple who spoke to ns ... It 
would have an influence on 
our thinking. ..as to how we 
should proceed in the weeks 
and months ahead.” 

He said Sinn Ftin would 
make a detailed response to 
toe Downing Street declaration 
before the and of next m onth, 
probably before the proposed 
Anglo-Irish summit. A docu- 
ment had already been drafted 


Mr James Molyneaux will 
today underline the Ulster 
Unionist party's op p o siti on to 
Joint authority between 
London and Dublin over 
Northern Ireland’s affairs, 
David Owen writes. 

The UUP leader will use a 
speech in Larne to say joint 
auth or it y would be "a recipe 
for increased instabil ity a nd 
tension” and that the UUP Is 
“not prepared to tolerate the 

by the party's national execu- 
tive, he said, which must be 
discussed with party members 
first “But this win not unduly 
delay our response,” he said. 

The report published yester- 
day is a summary of toe 280 
submissions made to the com- 
mission from across Northern 
Ireland and the Republic dur- 
ing five hearings held between 
Jkunazy and March. 

It does not make any specific 


establishment of the struc- 
tures far the severance of the 
union which joint authority 
would impose”. 

In negotiations with Dublin, 
Britain is understood to have 
rejected any suggestion that 
new north-south institutions 
could imply joint authority. 
But it is prepared to sanction 
cross-border executive boards 
to oversee a common approach 
in some areas. 

recommendations, but it does 
highlight two key points which 
are likely to be central to Sinn 
Ffem's response to the Downing 
Street declaration, namely the 
socalled "Unionist veto" and 
the issue of demfllt a rlsatioin. 

The report notes: "A huge 
range of submissions 
felt ... that the declaration had 
fudged the issue erf self-deter- 
mtnatkm” and says that “the 
need to remove the veto” 


should be subject to “further 
debate and discussion". 

Mr Doherty insisted that 
majority consent in Northern 
Ireland to constitutional 
change, as embodied in the 
declaration, was distinct from 
the Unionist veto. But when 
pressed to clarify he said: “The 
Irish nation is bigger than the 
Unionist population. ... consent 
means (Unionist) involvement 
and maybe even more than 
that, but there cannot be a 
veto." 

He said Sinn Ftin was also 
looking for a means to achieve 
"a total demilitarisation of the 
conflict” in Northern Ireland, 
rather than focusing on just 
one aspect of it, namely the 
IRA. 

Sinn Ffem thus appears to be 
moving towards proposing an 
extended IRA ceasefire, as 
opposed to a total cessation of 
violence as demanded by the 
two governments. 


:*>-•*«* 



:4m 


;* ■ ^ 


Afltfey Aahwobd 

Victory fears: Tony Blair causes concern to leftwing MPs 


members of the Tribune group 
said they were worried by the 
"fuzzy” personal manifesto for 
the leadership published by Mr 
Blair on Thursday. 

They voiced concerns about 
bis failure to set out a clear 
economic programme, his lack 
of support for public sector 
unions, and his statement that 
the market economy was “in 
the public interest”. 


Mr Peter Hain. MP for Neath, 
said there was “a very big 
question marie over our ability 
to win while appearing to be 
all thing s to all people”. 

Tribune, the leftwing news- 
paper, said Mr Blair's moderni- 
sing policies appeared designed 
to “tinker at the sidelines" of 
the economy. It called for 
"bold” policies to transform 
Britain. 


PM and Reynolds 
upbeat on Ulster 


By Philip Stephens, 

Political EdKor, in Corfti 

The British and Irish prime 
ministers last night reported 
solid progress towards an 
agreement n ext month on the 
framework for a new political 
settlement in Northern Ireland. 

After talks at the European 
Union summit in Corfu, Mr 
Albert Reynolds and Mr John 
Major offered an upbeat assess- 
ment that the outline accord 
would be agreed at a summit 
pendHed in for around July 20. 

Officials said the leaders bad 
still to resolve differences over 
the language in the statement 
on the proposed amendment of 
Dublin's constitutional claim 
to Northern Ireland and cm the 
establishment of new institu- 
tions to enhance north-south 
co-operation. 


But Mr Reynolds appeared to 
back away from comments 
earlier this week that he was 
insisting the new cross-border 
institutions should have "exec- 
utive powers". 

He left open the possibility 
that the precise powers of new 
all-Ireland boards to co-ordi- 
nate policy in transport, 
energy, tourism and communi- 
cations could be defined in 
talks between Ulster's constitu- 
tional parties. ■ 

British officials also sought 
to calm Unionist concerns 
about the plans by stressing 
that Dublin was not seeking 
“joint responsibility” in such 
areas. j 

Mr Reynolds hinted that the ' 
two governments must also 
settle the details of a proposed 
new assembly in Northern 
Ireland. I 


Fund management group 
fined over foreign trips 


Hollick urges new 
media watchdog 


Legal 

review 

granted 

on dam 

By James Blitz 


A leading UK pressure group 
yesterday won the first round 
in a legal battle to halt 
Britain's funding of Malaysia's 
Pergau dam project. 

The World Development 
Movement, a pressure group 
on Third World issues, was 
granted its application for a 
judicial review of the derision 
by Mr Douglas Hurd, the for- 
eign secretary, to fund the 
project. 

The group Is calling for the 
review on the grounds that the 
offer of £234m for the dam 
broke British law, which states 
that aid money can only be 
spent on beneficial economic 
projects. 

Lawyers for the group are 
also pressing the High Court to 
block tbe £200m that is yet to 
be paid to the Malaysian gov- 
ernment under the agreement 
signed by Mr Hurd. 

Mr Ben Jackson, the cam- 
paign coordinator, said the 
decision by Mr Justice Auld to 
grant the application was “a 
major victory” for his move- 
ment 

Mr Hurd's lawyer* did not 
oppose the granting of leave 
for the application. But his 
counsel, Mr Stephen Richards, 
said the full hearing later this 
year would be contested “with 
vigour". 

The High Court decision 
threatens to re-open the row 
over the funding of the Pergau 
dam at a time when the UK is 
anxkms to restore trade rela- 
tions with Malaysia. 

Much of the controversy 
over the project earlier this 
year was focused on whether 
the government had broken its 
own guidelines in 1988 by link- 
ing the offer or aid to a defence 
deal worth about £lbn. Mr 
Hurd has admitted there was a 
“temporary entanglement” 
between the two deals but that 
they were both pursued sepa- 
rately later. 

The World Development 
Movement is challenging Mr 
Hurd on the broader point that 
his derision in 1991 to fond the 
project broke the Overseas 
Development and Cooperation 
Act 

Mr Nigel Pleming QC. for the 
group, said that, under tbe act, 
aid could be given only “for 
the purpose of promoting the 
development or maintaining 
the economy of a country or 
the welfare of its people”. 

Mr Hurd bad been informed 
by his officials that the project 
was uneconomic. Sir Tim Lan- 
kester, the former permanent 
secretary at the Overseas 
Development Administration, 
told tbe foreign secretary that 
the dam was an “abuse of tbe 
aid programme”, but was over- 
ruled by Mr Hurd on the basis 
of “wider considerations". 

The group acknowledged 
that because it is not a a char- 
ity, it would need substantial 
donations from the public to 
proceed with the case. 


By Norma Cohen, 

Investments Correspondent 

Abbey Unit Trust Managers, 
the unit trust fund manage- 
ment arm of Abbey Life, 
improperly allowed its fund 
managers to travel to the US 
and Far East on trips paid far 
by commfesjons generated in 
trades with stockbrokers, regu- 
lators »riri y e sterday. 

Intro, the self-regulating 
body for the fund m»nagT*m»*nt 
industry, has fined AUTM 
£10,000 and ordered it to pay 
£8,000 in costs following an 
Investigation into its "soft 
commission" arrangements. 

Mr Paul Leband, director trf 
AUTM and a director of 


Abbey’s fund management 
company, said that seven fond 
managers had accepted £50,000 
of free travel and accommoda- 
tion to the US and the Far East 
between November 1991 and 
October 1993. The travel was 
paid for by two stockhroking 
firms, nm» American and one 
Far Eastern, through which 
the fund managers regularly 
placed CO mmlSS l mvg mwra Hn g 
trades. Mr Leband said that 
AUTM had "misunderstood” 
frnro rules relating to soft com- 
missions. 

Soft commissions are ser- 
vices which stockbrokers pro- 
vide to fund managers at no 
cost. In exchange, the fond 
managers promise to place an 


agreed volume of trades 
through the stockbroker gener- 
ating commission for it US 
regulators have almost banned 
the practice because the com- 
missions are paid out of inves- 
tors’ capital, but UK regulators 
allow such arrangements 
within certain limits. 

Imro roles allow the fund 
managers to accept services 
which aid them directly in 
their research activities, pro- 
vided the stockbroker with 
whom the agreement is struck 
arranges to buy or sell the 
stock at the best available 
price. Typically “softed” 
services are stockbroker 
research or computer so ft wa re 
services. 


By Raymond Snoddy 

Lord Hollick, managing dir- 
ector of MAI, thft broadcasting 
and financial services group, 
yesterday called for the cre- 
ation of a new watchdog to be 
responsible for ITVj the BBC 
and other broadcasters. 

The Labour peer whose com- 
pany controls ITV companies 
Meridian Broadcasting and 
Anglia Television told a Lou- 
don wmfwnrp yesterday that 

gngp rmnwits could and should 
regulate the market in which 
the media will develop. He said 
a broadcasting watchdog 
should be Hw p n naTiiP for stan- 
dards, complaints and 
finances. He said at a confer- 


ence organised by The Voice of 
the Listener and Viewer, the 
pressure group, that the idea of 
a media monopoly bad to be 
redefined to cover all forms of 
media and called for a more 
effective and coherent govern- 
ment policy. 

He argued that an element of 
public service obligation 
should apply to all terrestrial, 
satellite and cable broadcasters 
"to promote both programme 
diversity and domestic 
production”. 

He said he wanted to "main- 
tain ITVs public service obli- 
gations, the positive pro- 
gramme requirements in the 
Broadcasting Act and the 
capacity to meet them”. 




Business urged to build new Britannia 


Sir Donald Gosling, Joint 
chairman of National Car 
Parks, yesterday called cm the 
governmait atm! industrialists 
to join him in building a vessel 
to replace the royal racht Bri- 
tannia by the year 2000. 

The Ministry of Defence, 
which announced this week 
that Britannia would be 
decommissioned in 1997, said 
Sir Donald’s proposal was 
likely to be the first erf many. 

Sir Donald said he hoped the 
g ove rn ment would match the 
private sector “pound fen 
pound” in building a show- 


He said that in addition to 
transporting the royal feunfly 
wnd promoting British trade - 
Britannia's currant roles - the 
ship could be used for adven- 


ture training for young people. 

The ship could be leased to 
the Royal Navy, which would 
make it available both to the 
royal family and the compa- 
nies which helped to ftmd it, 
he said. “Industries and indi- 
vidnals could take debentures 
an the ship. The whip is not 
intended to make a profit, 
although it might pay some 
interest to debenture holders.” 

Sir Donald said he was 
approached about the idea of 
building a new royal yacht by 
a parliamentary maritime 
group, and he understood they 
were in touch with other 
industrialists as wdL 

A defence ministry official 

said mfffinng of pm nrtdc worth 

Of export business, including 
weapon sales, had been sealed 


With tile hrip Of Britannia TTb 

ggiffr. “The nvftnwwt people step 
on board, they can’t help 
being impressed by the high 
standards of naval engineer- 
ing." 

A glttnnp at list Of nr ptn. 

Isers of recent events on board 
Britannia suggests that the 
yacht has attracted the "great 
and the good" of business 
rather than medium-size and 
email cmnpaniflg- 

Tbis week's conference in 
Helsinki was chaired by Sir 
Michael PaHiser GCMfi, vice- 
chairman of Sameul Montagu 
and former head of the diplo- 
matic service. 

In Bombay last November 
British Invisibles hosted a sem- 
inar with opening remarks by 
Sir Nicholas Fenn, the British 


high commissioner, and contri- 
butions by Sir Hugh Bidwell, 
former lord mayor of London, 
and Mr Andrew Buxton, chair- 
man of Barclay’s Bank. 

in New York Mr Tony 
Tucker, director of public 
affairs for the Scottish Whisky 
Association, helped organise a 
reception for 120 congressmen, 
journalists and otherUS 
glitterati. 

He said: "Undoubtedly the 
opportunity to use Britannia 
was most welcome. It added 
that extra dimension of royal 
lustre which would just not 
have been available In a hotel. 
The Americans were intrigued 
and very interested so they 

Mnw along " 

In cost terms, Mr Tucker 
described Britannia as a "vary 


good deal” - neither "wildly 
expensive nor cheap" but 
worth it as a promotional tooL 
A separate New York recep- 
tion aboard Britannia was 
organised by British Invisibles 
as part of a programme of 
trade promotion. 

Mr Nigel Carter, a director 
with British Invisibles, said: 
"Our seminars were never 
designed to produce instant 
reaction in terms of contracts. 
But we have undoubtedly 
found Britannia extremely 
valuable in terms of developing 
contacts and reinforcing the 
profile of British firms." 

William Lewis 

. Timmy Rnms 

Bruce Clark 


iXM'r.. 


Help us give every 
injured child the care 
that Saed received. 

The last thing Saed ever saw was a shower of mud os his 
playground was shelled. He escaped to safety and a western 
hospital. But thousands of children from what was once 
Yugoslavia don't have that chance. Many face operations 
without anaesthetic. The Red Cross has got aid through lo 
over 2 million people. Your donation wiU help even more. 

Yes, I want to help 

I endow? a chequc/post al order (payable to British Red Crus*) tit 

□ £250* □ £50 □ £25 Dos Other £ 

Or please debit my Vtea/MasttKard/AmerfXMts QuhfSwitdi Card 

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Tbdayb dale . 


Signature . 


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g 071 2015250 

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Address 


Postcode Tel. - 

Now please send this cwptn with tout d onatio n, hs British Red Craas, 
Fortner Yugoslavia Appeal, Room 559, FREEPOST. LONDON SW1X 7BR. 
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as we can dun back the tax. 

□ Please tick this boa tfjnon do not wars la lerehe further information an 
the Red Com. 

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■nuwml ony Na SWW 



■ % 1 








FINANCIAL TIMES 

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

Saturday June 25 1994 

What haunts 
the markets 


Polonies advised bis son, brother 
of Hamlet's Ophelia, to be neither 
a lender nor a b o rr o w e r . If people 
had taken this sage counsel, there 
would not be much of a capital 
market, nor indeed much, capital- 
ism. But what has happened to 
global markets this year rein- 
forces the sense behind his advice. 
It is not so much that one should 
be neither a borrower nor a 
tender. It is more that only one of 
those roles is worth playing at any 
moment. It has been a •nrigtak* 1 - to 
be a long-term lender in 1994. Now 
it will prove costly to be a 
long-term borrower. 

hi the 1970s, long-term lending 
to such previously sound borrow- 
ers as the US and UK govern- 
ments proved fitwmriaTiy sulddaL 
Fears of a repeat haunt markets. 
During periods of dedining infla- 
tion investors forget their fears, 
like hungry mice braving a sleep- 
| ing cat But as soon as inflation 
stabilises and prospects for 
short-term gains on long-term 
inane v anish, they remember nnro 
again. So for, 1994 has been a year 
for remembering. 

Naturally, policymakers con- 
demn such fears as irrational. In 
response to the decline of the dol- 
lar to below Y100, President Bin 
Clinton said only this week that 
“this is the first time in 30 years 
that we have had growth in the 
economy, with no inflation, led by 
investment that will create jobs”. 
Thank you, Mr Greenspan, he 
might have but did not. He 
has, instead, appointed two people 
to the board of the Federal 
Reserve, Alan Kinder and Janet 
Yellen, who are thought to he soft 
an inflation. 

Why did he do that, wonder 
those spooked markets? He is 
hardly likely to admit that he 
hopes to manage a default cat Rea- 
gan-era federal debt, via a boat af 
good old-fashioned inflati on. He 
bad to say what he did, argue the 
doubters, whether he is sincere on 
inflatio n or not. 


Inflation feats 

The return of fears about infla- 
tion is one reason for the linked 
phenomena of declining bond mar- 
kets and a foiling US dollar, 
another being the strength of the 
US recovery. Investors no longer 
wished to buy US financial assets. 
Once that mood took hold, the size 
of the US ament account deficit 
made a weakening of the currency 
likely. 

If this is so obvious in retro- 
spect, why was it not in advance? 
The general assumption at the 
beginning of the year was that the 
dollar would strengthen with US 
economic recovery, as short-term 
interest rates rose in the US and 
continued to fall elsewhere, partic- 
ularly in Europe. The relative 
short-term, interest rate part of 


this story has worked out more or 
less as expected, but it has not 
had the expected effect on the dol- 
lar. 

The main reason is that people 
did not foresee what would hap- 
pen to long-term rates. What has 
since been called the world’s big- 
gest ever margin can, following 
the Federal Reserve's minuscule 
monetary tightening last Febru- 
ary, led to larger bond market 
declines than expected. These 
increases in long-term interest 
rates reflect partly the rev ers a l of 
earlier speculation, partly a return 
of fears about inflation, but also 
higher real rates of interest. 

Higher rates 

The fact of higher real interest 
rates is demonstrated by the one 
more or less incontrovertible piece 
of evidence, the rise in the real 
yield on index-linked sterling gilts 
from 23 to 4 per cent since Janu- 
ary. This inwwiff tr-r plgrnu nhnncf 

half the rise in the yield on con- 
ventional long-term gfl+s in this 
period, the rest being presumably 
due to deteriorating inflationary 

Why should higher real rates 
hurt the dollar? One reason is that 
investment opportunities else- 
where are better, partly because 
recovery in continental Europe 
anil Japan jg hamming evident. 
Investors will wish to invest in 

Other MnwHiing tint, is 

hurtful to a country such as the 
US which is dependent for 
exchange rate stability on a con- 
tinuing inflow of foreign c apital 

Also imp o rt an t in a mare infla- 
ti onar y environment is past his- 
tory. It is not an accident that 
Japan and Germany, both of 
which have relatively good histori- 
cal records on inflation and histor- 
ically strong external positions, 
have suffered the smallest 
declines in their bond markets 

among landing industrial coun- 
tries. Meanwhile, Canada, Italy 
and the UK have suffered most 
Japan and Germany also fond to 
have the strongest currencies, 
Japan most of all, given its stOl 
huge current account surplus. 

Three conclusions emerge. The 
first is that with real interest rates 
bads to 4 per cent being a bor- 
rower is a risky business, even for 
governments. This has to be true 
when real interest rates exceed 
the prospective real rate of growth 
of an economy. 

The second is that more govern- 
ments should borrow cm inflation- 
indexed terms. Not only would 
this help analysts- understand 
bond markets better, it would also 
protect markets from the fear of 
inflation. Finally, the spooked 
markets of today are the price of 
deceit years ago. The only p ossible 
response is to go an trying every 
day to earn their trust 


You win some, 
you lose some 

UK pension scheme members have gained security, but 
may have lost some rewards, says Norma Cohen 



effective, therefore, as it could be. 
% Madmnm solvency standards 


W hen the former 
directors of 
Belling, the UK 
cooker manufac- 
turer, wee trying 
to salvage their sflfag company in 
1991, they turned to the pension 
scheme. The directors, who were 
also pension scheme trustees, 
bought a Belling subsidiary for the 
scheme with £5.5m of pension 
assets, and borrowed £2.lm from 
the fund. 

Belling went into liquidation the 
following year and the liquidators 
valued the subsidiary at asm 
Scheme members turned to tire 
courts to recoup their money. So 
for, they have recovered little. 

This is one of the most serious 
cases to rock the pensions industry, 
which has not yet regained public 
confidence after the di sapp e aran ce 
of more than £440m from pension 
funds controlled by the late Robert 
Maxwell. 

Last week, the gove rnm ent acted 
to fill some of the most gaping holes 
in the regulatory net which permit- 
ted Maxwell’s deception to take 
place. In addition to giving an over- 
sight of pension schemes, the pro- 
posed legislation would alter some 
aspects of state benefits which may, 
in some cases, reduce the benefits 
paid to pensioners. 

The overriding question for pen- 
sioners and scheme members is 
whether they will be better off 
when the proposals become law. 
The white paper tries to balance 
improved safety for members 
a gahmt the interests of employers 
who do not want to bear higher 
costs. The main points are; 

• Creation of a pensions regulator 
to be funded by a levy an toe pen- 
sions industry estimated at flOm a 
year. The regulator would have the 
power to discipline and set fines for 
schemes which break the rules. 

There Is widespread agreement 
that the regulator is central to 
improving the safely of schemes. 
Regulation would be funded by the 
pensions industry through a board 
selected from toe industry. It would 
rely on “whistleblowing” by profes- 
sional advisers to scheme - actu- 
aries, accountants and solicitors — 
to alert it to wrongdoing. 

“Professional people are naturally 
reluctant to be whistleblowers far 
people who are foefe niieo ** and 
their source of income,” said Mr 
Stewart James, chairman of the 
Association of Pensions Lawyers 
and partner at solicitors Rowe and 
Maw, and aim a member of the 
Goode Committee, whose proposals 
toe white paper reflects. He thfnint 
toe idea of toe regulator is not as 


atm to ensure that schgnws have 
pnmigh maaafo to meet their pen- 
sions obligations. These begin to 
take effect in April 199? and 
schemes would have five years to 
meet them fully. If they meet at 
least 90 per cent of the standard, 
they may take another three years 
to bring them up to 100 per cent 

But there is a cost to members of 
this added security. This is because 
the method used to calculate the 
value of assets — which adds up the 
cash equivalent needed to buy an 
annuity that would provide the 
member with the promised benefits 
at retirement - nipem* that 
who leave schemes early will have 
lower transfer values. 

The accountancy firm Coopers & 
Lybrand that the new cal- 


culations of cash equivalents would 
mean that a 30-year-old leaving a 
scheme would have a 25 par cent 
lower transfer value once the new 
rules take effect 

• A compensation scheme for 
fraud or misappropriation would be 
financed by employers and cover up 
to 90 par emit of any missing assets. 

• Scheme members would have 
the right to appoint at least one- 
third of a board of trustees, with 
cmaTi c^nmiMi guaranteed at least 
one member trustee. 

This proposal should improve toe 
confidence of the average pension 
scheme member. First, members 
would be able to appoint trustees 
who cannot be removed by the 
employer. They should be in a posi- 
tion to spot inappropriate activity 
early. Mr Nigel Preston, partner in 
the pensions practice at consulting 


actuaries R. Watson, said: “Fve seen 
schemes with member trustees, and 
they do improve toe quality of 
administration. They certainly limit 
the ability of the bad guys to put 
their lmnw in. the tEDL" 

In the presence of mem- 

ber trustees forces toe employer to 
tiiinfc twice about securing the use 
of a scheme surplus entirely for his 
own benefit, Mr Preston says. Thus, 
not only may members feel safer 
after toe new legislation, they may 
also find they are better off. 

• Abolition of the Guaranteed Min- 
imum Pension from April 1997, 
which guarantees that at least a 
portion of each deferred pension 
rises in value to line with salary 
increases, until it is ready to be 
drawn. Instead, employers would 
have to increase pensions in pay- 
mot by 5 per cent or toe retail 


price index, whichever is to ym. 

The GMP is cuwentjy Intended to 
ensure that occupational schemes 
provide at least a portion of 
de ferred benefits, which rise each 
year in lino with earnings, and 
which are equal in value to those 
provided by the State E a rnin gs 
Rafated Scheme. Schemes which are 
"contracted out" of Serps are 
allowed to receive rebates of 
National Insurance Contributions 
■tong wjjt b thMr members. 

According to data from the 
National Association of Pension 
Funds, some 41 per cent of employ* 
era are voluntarily increasing pen* 
irfima to payment each year by the 
required under the new 
law, A further 20 per cent are 
increasing pensions by an even 
more generous level. Indeed, only 2 
per cent of all 'schemes have 
Ewwm of less than 3 per cent 


each year. 

Ms Penny Webster, partner at 
Bacon and Woodrow, the consulting 
actuaries, said the abolition of GMP 
-mild cause significant reductions 
to the pensions received by many 
people. In particular, those who 
change Jobs frequently would be 
hard hit That Is because, al th oug h 
a “frozen" pension is only required 
to be uprated by 5 per cent each 
year, toe GMP portion of that pen- 
sion must be increased by 7 per cent 
or by to e fowl of warnings inflation, 
which is typically ltt to 2 per cent 
above retail price i nfl at i o n . 

“Let's say a 35-year-old man 
leaves a scheme with 30 years to go 
until retirement.” Ms Webster says. 
•‘Considering that GMP can be 40 
per cent of his total pension, that 
man’s final pension will be reduced 
by 15 per cent." Those who stand to 
benefit are those whose employ era 
provide little or no toflatiosHproof- 
ing for pensions, and who have 
worked most of their lives for a 
s to gfo employer - a minority of the 
UK 10m scheme members. 

The response to the white paper 
has been mixed. The NAPF has 
broadly endorsed it, saying it 
strikes a balance between improv- 
ing security for scheme members 
ami limiting costs to employers. But 
trade unions have said it does not 
go nearly far enough in protecting 
scheme members. 

The answer to the question of 
whether the average scheme mem- 
ber is better off is: maybe. For while 
there is a greater certainty that 
promised benefits win be delivered, 
they may prove to tire end to be less 
generous at present it will be 
op to scheme members to decide 
whether they thtok the tradeoff Is 


T he creation of a sta tuto r y 
regulatory sys tem for the 
pensions industry, prom- 
ised in Thursday's white 
paper, marks a turning point after 
mare a decade to which lais- 
sez-faire principle# guided govern- 
ment relations with the City. 

It is ironic that the job of 
announcing this departure from 
orthodoxy fell to Mr Peter UHey, 
the social security secretary. He is 
seen by the Tory right as one of the 
few standard-bearers of the Thatch- 
erite inheritance left in the cabinet 
Yet Mr Lflley had tittle choice to 
the aftermath of the Maxwell scan- 
dal but to seek a comprehensive 
and s tatu tor y framework. The dis- 
appearance of £45 Om of pension 
tends from Mr Robot Maxwell’s 
business empire - and file plight of 
toe thousands of pensioners left 
high and dry - required a convinc- 
ing policy response. Tory back- 
benchers, no less than the opposi- 
tion, were unlikely to accept 
remedies that idled on a further 


John Willman on moves towards statutory regulation 

Break with Thatcherite past 


dose of sdf-regnlatfon- 

“I don't think there would be any 
support for the view that no action 
Is need e d to the pajsians indus- 
try," says Mr John Watts, Conser- 
vative chairman of the House of 
Commons Treasury and Civil Ser- 
vice C ommi tt ee . 

As for the pensions industry, a 
statutory framework complete with 
regulator was seen as the quid pro 
quo for a compensation fund 
financed by a levy. A strong regula- 
tor is men by the industry as essen- 
tial to minimise fo** eaite likely to 
bejnade on the fund. 

The move to statutory regulation 
of the pensions industry is flhriy to 
rekindle demands for a similar 
approach to financial services regu- 
lation as a whole. Influential bank- 
ers and insurance exe c u ti ve s have 


become increasingly concerned 
about the self-regulatory edifice 
that has been constructed on the 
back of the 1986 Financial Services 
Act (FSA). 

Mr Mick Newmarch, chief execu- 
tive of Prudential, the UK’s largest 
fife insurer, has led calls for a shift 
towards a simpler statutory sys- 
tem. “Such is the wholly unsatis- 
factory state erf retail financial ser- 
vices regulation that the 
experiment of self-regulation 
within a statutory framework must 
be seen as a failure,” be says. 

Other top City figures are reluc- 
tant to express such views to pub- 
lic But there is widespread support 
for the view that change Is needed, 
says Mr Andrew HOton, director of 
the Centre for the Study of Finan- 
cial Innovation, a City think-tank. 


Last May, the centre pnbBs b ed a 
paper 'arguing for for-roachtng 
changes that drew heavfiy on toe 
thfaicfag of Sto Brian Beane, then 
fMrf »«fi i iHv » of Midland. Benk. 
There has been “an wiiwMiligiy 
positive respons e" , says Mr Htiton, 
to the proposals. 

Despite differences over what 
should replace self-regulation, 
thereto a growing view in the Oty 
that statutory regulation would be 
better than the framework created 
by the FSA, according to Mr Gra- 
ham Mather, toe newly-elected 
MEP who to president of toe Euro- 
pean Policy Forum. 

“People say that we have ended 
up with the worst of both wurids," 
he says. “The FSA to suppose d to be 
self-regulatory, but it to heavily 
overlaid by statnto r y re quha nenta. 


The at t raction of a statutory sys- 
tem to tint it would get rid of the 
present mesa." . 

Such advocates of change are 
unUkriy to have their wish ful- 
filled, however, says Mr John 
Maples, a fanner Treasury minister 
who to now chairman of Saatchl 
Government Communications, a 
lobbyist 

“I cannot believe there to any 
stomach for amending the FSA this 
embay," he says. "The faults are 
not Mg enough for the government 
to go torough the grief that would 
be involved." Mr Mather agrees. 
"There to still time to sort out the 
FSA,” he says. 

Those hoping that the pensions 
white paper opens a new door for 
simi lar moves for financial sendees 
regulation as a whole are likely to 
be disappointed, therefore. It will 
take a scandal of the magnitude of 
the Maxwell case before the politi- 
cians see any need to extend stats- 
trey regulation, to the financial ser- 
vices industry as a whole. 








Man in THE News : Conrad Black 


New battleplan 
for Waterloo 


T his has been an incredible 
week for Ms Barbara 
Amid, the right-wing Sun- 
day Times columnist. She 
has Her views, usually described as 
trenchant, have recently encom- 
passed the need for a Ann stand 
against both North Korea and beg- 
gars. 

On Tuesday she held what has 
been described as the “high society 
party of the summer” at the Rita 
hotel to London, bringing together 
150 people, including Princess 
Diana, to celebrate businessman Sir 
James Goldsmith's election as a 
Euro Mp and bis wife’s 60th birth- 
day. 

Ms AmieTs husband, Conrad 

Blaftfc, rfi airman of thn Telegraph 

group, had quite a week, too. Before 
heading for the Bitz, Black had 
been putting the finishing touches 
to the decision to cut the price of 
the Daily Telegraph from 4§p to 30p. 

The decision led to a sharp fall 
the Telegraph share price, which 
exposed Black to something 
approaching hatred in the City of 
London because he sold ETSm-worfh 
of Telegraph shares last month at 
what now looks like a fancy price, ft 
also provoked a counter-attack from 
Rupert Murdoch, who cut the price 
of The Times to 20p. 

But Black is a tough general 
“This is not a problem, 1 have been 
in tighter corners than this,” he 
said on. Thursday night, after beai^ 
ing of the latest Murdoch manoeu- 
vre and before going off to dinner 
with Barbara, his second wife who, 
he says, has made him happier than 
he has ever been. 

By any standards, however, he is 
fighting a tight corner. And Black 
acknowledges that Murdoch, chair- 
man of News Corporation, which 
owns five national newspapers 
including the cut-price Sun and the 


cut-price Times - both sellin g at 20p 
— is “playing hardball”. 

The owner of the Telegraph group 
said he believed that Tie [Mr Mur- 
doch] wants to put the weaker com- 
panies to toe waft. 1 am a capitalist 
and a Darwinian and I don’t raise 
moral objection to that, although 
we’re a flve-and-lst-Iive company". 

The Canadian newspaper propri- 
etor, with more than a passing 
in tere st to military history and the 
achievements of Emperor Napoleon 
Bonaparte, laces bis conversation 
with talk of war to toe wake of 
Murdoch’s fierce retaliation. 

“You can't make war and peace at 
the same tune, you can’t suck and 
blow at the same time. If you’re 
going to regret an escalation of hos- 
tilities by an adversary who has 
already declared war.on you, you 
might as well have flown up toe 
white flag to the first place.” 

He is similarly doflant about City 
innuendo that , when his main com- 
pany, Hollinger, sold 12fan Tele- 
graph shares on May 19 at 587p, he 
bad thoughts of cnHing the price of 
toe paper. 

Black said he returned from New 
York last week to find a recommen- 
dation “from all my management " 
that the paper should cut its cover 
price. May's circulation figures, out 
earlier this month, showed The 
Times had increased its sales by 
35,000 compared with April, to a 
new record cf 5154)00. The choice, as 
they saw It, was between acting 
now and watching their circulation 
drift slowly down. 

“Was 1 seriously supposed to say: 
‘Sorry, fellows, we can’t do it 
because it will give me a public 
relations problem.’ That is no way 
to run a company. You do whst you 
have to do when you have to do it,” 
said Black. 

He added that ha fo»d recently 



discovered a new profit centre - 
suing people fear defamation - and 
promised to sue anyone who cast 
direct aspersions on the share sale. 

The hard attitude some in the 
financial community have taken 
towards Black and the Telegraph, 
however unjustified, may make it 
difficult for the organisation to 
raise mousy to the City of London 
for some time. 

But was the Telegraph price cut, 
which will cost £4Qm gross m a full 
year, wise? Has not Blade merely 
caused pandemonium to the news- 
paper market, damaged the profit- 
ability of Ins paper and devalued 
the 77m Telegraph shares Hoffinger 
continues to own - and possibly 
undermined the future of T he inde- 
pendent - all for a toe-to-toe slug- 
ging match with Mr Murdoch? 

"I am not one of those who 
desires to see a smaller number of 
n e wsp ape r s published. We are not 
frying to run anyone out of busi- 
ness. We are Just not interested to 
being bowled out by Murdoch,” said 


Black, who believes the effect of the 
price cut on the Telegraph's profits 
will be relatively marginal. 

“If it shakes out the way we 
think, 1 think we will have the plea- 
sure of having stopped toe inexora- 
ble rise of The Times, shored up our 
own position and taken only a mar- 
ginal bit to profit,” be said. 

Nevertheless, the price war could 
turn out to be the newspaper equiv- 
alent afa winter campaign to Bu s- 
sia for Black, who bought e ffe ct i ve 
control of toe Daily Telegraph at a 
costal about £2Qm to 1986. 

Price cuts are not the only topic 
exercising his staff this week. Mar 
Hastings, Telegraph editor-in-chief, 
appointed Simon Heffer, a journal- 
ist known for right-wing views, as 
deputy editor, amid reports that 
Hastings was a candidate for being 
“kicked upstairs”. 

Black conceded: *1 became impa- 
tient not with the ideological tenor 
of the paper but with the lack erf 
sharpness. It Just wasn't robust and 
vigorous enough and needed to be a 
little bit more erf a thnnderer [the 
old nickname for The Times].’’ 

On top of this week’s turmoil, the 
Telegraph, a qutotesseutiaHy Con- 
servative newspaper (though it does 
criticise individual Conservative 
governments), could be heading for 
a period of opposition, ft Labour 
wins the next election, then Black 
and Ms Amiel will be invited to few 
powerful political parties, even 
though Black regards Tony Blair, 
the favourite for the Labour leader- 
ship as “a perfectly nice man”. 

As usual, Black takes the historic 
view. The Daily Telegraph, he 
explained, had been founded in 1855 
essentially to oppose the then prime 
minister Lord Aberdeen, and the 
Duke <rf Cambridge as commander 
of the British army. “You can’t 
always have your own people in 
power. If we found ourself as a 
highly oppositionalist paper, that is 
frequently a very enjoyable position 
for a newspaper to be to,” said the 
man who is today many mflifo ps of 
pounds power than be was at the 
Rite an Tuesday evening. 

Raymond Snoddy 


Thii notice is bated in compliance widi dbe r e quim n cn n of die Imenadonl Stock Exchange of ik Umd Kingdom and dw 
RepobKc of ficbnd Unucod (tbe "London Scod ExdoogO and appean a* a matter of record mdy. h dots doc ccauSnirc w 
in v imi a u or offier to xnbacrtbc or pnretate any a eo tr mca. Application bn been made to tbe London Stock y hr the 
new shares and new w armu p to be admined to the Official Liv and h a e xp ected dwe adnriarion to the Official Ur will 
became elective end that dealing* wffl c a t nm e i w t on at July, 1994. 



The Five Arrows Chile Fund Limited 

• (Incorporated and registered with limited liability in Guernsey with registered number M738) 

■ The Five Arrows Chile Fund is an ofishore fund 
which invests in Chilean equities 

Restructuring proposals incorporating 
bonus issues of new shares and new warrants 

The restructuring proposals involve obtaining the status of an Inland Revenue approved 
investment trust in die United Kingdom, changing the name of the Company to "The Five 
Arrows Chile Investment Trust Limited”, making a bonus issue to Shareholders of nine new 
shares for every one share presently held, making a free issue of new warrants to Shareholder on 
the basis of one new warrant for every five shares presendy held and esnbbhing investment 
crust savings scheme to allow investors to make regular purchases of shares. 


SHARE CAPITAL 


Authorised 

Number Amount US$ 
1000 1000 

100,000^X50 1,006,000 


rounder Shares of US$i each 
■ Shares of US? ojoi each 


- iww 


Copies of the listing particulars relating 10 The Five Arrows Chile Fnnd Limited nay be obtained 
during normal business hours up to and including mh July 1994 from 1 


Rocfasdifld Aset Management Limited 
Five Arrows HottK 
Sc Swidiia’s Lone 
London 
EC4N INR 


Snmh Now Coon Corporate 
Finance Limited 
Sad* New Cohr House 

M Farrtngdon Road 

London EQM 3NH 


&- Peter Pan I W 
Swimiw Siiwet 
St Pew Poet, Guenwev 

Ownnd binds CYi jPH 


and during normal business hours on 17* June and a8th June, 1994 for collection only from 
Company Announcements Office, London Stock Exchange, London Stock Exchange T * in *"* 
Court Entrance, Off Bartholomew Lane, London EC*. ° We *‘ 







* 






V 












*■ 

5 .;'- ' 

.1 

ff'.T.V 


j^NANC lAT 

W lxile the world’s lead- 
mg central banks 
agonise over the yen’s 
historic Imp through 
nuu to the dollar this week, ordi- 
wry Japanese people are having a 

■A Japanese consumer might cele- 
brate by treating himself to a prime 

lun ch, washed down 
with a bottle of French wine or Bel- 
gisD beer. He could then step fntr> 
ms new Cherokee jeep for a drive to 
travel agent, where he 
might book a beach holiday in 
Hawaii, Hkely to cost less than a 
golfing trip to Hokkaido. 

These are examples of the for- 
merly expensive foreign treats 
being snapped up by consumers, 
ranched by a currency that has 
nsen 35 per cent, in trade weighted 
terms, since the start of last year. 

Imports of beef, mostly US and 
Australian, rose by a third in the 
year to March; beer imports multi- 
plied fivefold in the first four 
months of this year, and wine 
imports doubled. Car imports rose 
by nearly half last month, the sev- 
enth monthly rise running, to gain 
a record 8.6 per cent market share, 
led by US cars with a 60.6 per cent 
volume rise. Meanwhile, a record 
5.2m Japanese travelled abroad in 
the first five months of this year, 
nearly 16 per cent more than the 
same period of 1993. 

Their appetites sharpened by 
more than three years of economic 
decline, Japanese people have 
acquired a taste for a bargain. 

Some - but by no means an - the 
consequences of the yen’s strength 
have been good for the economy. A 
discount shopping spree, for exam- 
ple, was thought to be a factor In a 
jump in private consumption, by an 
annualised 5.8 per cent in 


Japanese warm to vin ordinaire 


the first quarter of this year. 

This spree helped import volumes 
grow by 16.1 per cent in the year to 
last mnnih, the main cause of a 
sharp 15.9 per cent drop in the trade 
surplus over the same period. It was 
the first clem 1 sign that the politi- 
cally troublesome current account 
gap - a footer in the yen's rise - is 
starting to shrink. 

“The boon to consumers will go 
much further time than fo the 
previous round of yen appreciation, 
because people have become genu- 
inely more value oriented.’* says Mr 
Dick Besson, senior economist at 
James Cape] Pacific. 

Evidence that Japan’s new taste 
for French wine and US cars could 
have some way to run is that for- 
eign goods stfll only represent just 
over 14 per cent of domestic 
demand - well below the OECD 
average ctf 24 per emit So Japan's 
consumers can be expected to reach 
for their corkscrews and propose a 
toast if the yen should rise p gain. 

There is, of coarse, a painful side 
to foe yen's fluctuations. Nowhere 
is the wn prteh worse than in the 
boardrooms of Japan’s manufactur- 
ing companies. They have seen the 
yen value of overseas earnings 
squeezed since the 1985 Plaza 
accord to restrain the dollar’s value 
started the yen's rising trend. 

Another turn of the screw is 
unwelcome, when Japan is in the 
fragile early stage of a recovery 
from its longest economic d ownturn 
in postwar years - 37 months 
according to the government's Eco- 
nomic Planning Agency. 

It is even less welcome when the 


Cheap French wine is one pleasant consequence of the 
strong yen, but there is also pain, says William Dawkins 

Japanese shoppers; spend, spend, spend 




minority coalition government is 
feeing a no-confidence motion, para- 
lysing attempts to resolve the dis- 
pute with the US over barriers to 
imports, and casting doubt on the 
substance of the package of deregu- 
lation and tax reforms, due to be 
published on Tuesday. 

“The yen’s extraordinary sharp 
appreciation could not only nip the 
recovery in business conditions in 
the bud. bnt also destroy the coun- 


try's manufacturing industry," 
warns Mr Takeshi Nagano, chair- 
man of the Nikkeiren employers' 
federation. 

Mr Shoichirt) Toyoda, chairman of 
the Eeidanren employers' federa- 
tion, estimates that, if the yen 
sticks around Y100 to the dollar for 
the next year, gross domestic prod- 
uct will shrink 0.8 per cent over the 
same period. That compares with 
the government’s target of GDP 


growth of 2.4 per cent this year. 

A similar, but stronger jump in 
the Japanese currency this time last 
year killed signs of a recovery then. 
The yen rose by 17 per cent from 
January 1993 to last year's high of 
nearly Y100 in August, receding to 
Y110 by the end of the year. By 
yesterday it was at Y101.1. 12 per 
cent above its 1994 opening rate. 

Each Yl foil against the dollar 
over a year slices 3.4 percentage 


points from manufacturing indus- 
try’s taxable profits, according to 
Nikko Securities. The Economic 
Planning Agency reckons that only 
one in 200 of Japan's exporters can 
break even at Y10Q to the dollar. 

Yet foreign economists - and 
some Japanese companies - believe 
that Mr Toyoda and Mr Nagano ore 
exaggerating slightly. For one 
thing, they do not believe the yen 
will stay at this height, because the 
current account surplus appears to 
have turned the comer. 

This year's signs of a general eco- 
nomic recovery are also stronger 
and more widespread than last 
year's. Gross domestic product rose 
by an . annual 3.9 per cent in the 
first quarter of this year, by com- 
parison with the 1 per cent rise in 
the same period of 1993. 

This might explain why the stock 
market does not believe that the 
strong yen is as as bad for corporate 
Japan as managers sometimes 
claim. Mr Robert Feldman, chier 
economist at Salomon Brothers 
Asia, the securities company, points 
out that share prices have risen in 
each of the seven years since 1970 
in which the yen has appreciated by 
more than 10 per cent; “It suggests 
that the yen's strength is linked to 
the strength of the economy." 

Japanese industry has, moreover, 
had nearly a decade since the Plaza 
accord in which to sharpen its com- 
petitiveness in response to the ris- 
ing yen, by t rimm ing costs and 
shifting capacity abroad. Clearly, 
the yen's strength reduces such 
companies' foreign costs as well as 
foreign revenues. 


Today. 7 per cent of Japan's 
industrial production is overseas, 
according to the Tokyo office of 
Morgan Stanley, the Investment 
firm. The more caused the loss of 
70,000 Japanese manufacturing jobs 
at the latest count in iwii, But that 
is tiny m relation to the 62.5m 
workforce, so unemployment 
remains far lower than in Japan's 
leading competitors, at IS per cent. 

This indicates that industry con 
continue the shill abroad without 
breaking its taboo against making 
redundancies - the constraint on 
foreign investment most commonly 
cited by managers in Tokyo. 

A nother high-yen survival 
technique has been to con- 
tain the rise in export 
prices by sacrificing profit 
margins and keeping a lid on labour 
costs. They have been bellied by the 
fact that Japan's working hours and 
total wages are more flexible than 
international competitors'. 

But Japanese companies have 
been unable to squeeze labour costs 
indefinitely. These have been 
allowed to rise since the turn of the 
decade above those in the US and 
Germany. As a result of Japanese 
companies' decreasing ability to 
pass uq tile costs of the high yen to 
their workforces, the countries less 
of expurt market sh.ire “could begin 
to be severe", warns the latest 
OECD report on Japan. 

The lesson, as if Japanese compa- 
nies dal nut already know this by 
heart, is that wild currency fluctua- 
tions are a long-term Tact of busi- 
ness in Japan. Consumers cun, at 
least for the time being, continue- to 
drink cheap French wine, reason- 
ably secure in the knowledge that 
their hard-pressed employers will 
not throw Lhem out of a job - yet 







« • ■ 



C 





c 


Party loses 
its footing 

Quentin Peel on the fluctuating 
fortunes of Germany’s SPD 



The tide is running against Rudolf Scharping and the SPD 


W hen Mr Rudolf 
Scharping chose a 
cavernous indoor 
ice-rink on the 
outskirts of Halle , in eastern 
Germany, as the venue to 
launch his campaign last 
Wednesday for the German 
chancellery, he was taking a 
calculated risk. 

Not Only was thin lrwnmnpnt 
to east Germany’s former 
obsession with sports, with Its 
banks of orange plastic seats 
screwed to concrete hAticbpg a 
terrible place for a big set-piece 
speech, even to the party faith- 
ful It was more than that 
Halle, once capital of a 
sprawling chemical industry, 
now ravaged by unemploy- 
ment is in the throes of an 
election campaig n fix- a new 
parliament and government in 
the state of Saxony-Anhalt 
The voters go to the polls 
tomorrow. So Mr Scharping, 
the neatly bearded, 46-year-old 
leader of Germany’s opposition 
Social Democratic .party (SPD), 
was putting his election- win- 
ning reputation on the Kna. 

Four months ago, he looked 
a good bet Mr Scharping and 
the SPD were riding high. 
Chancellor Helmut Kohl was 
trailing in opinion polls, the 
economy was stfll in the dol- 
drums, and the conservative- 
Eberal coalition government in 
Saxony-Anhalt was in disarray 
after the resignation of its pre- 
mier and three ministers in a 
scandal over inflated salaries. 

The Halle party conference 
to endorse Mr Scharping as the 
candidate for chancellor was 
just what was needed, the 
party strategists declared. It 
would secure a resounding win 
in the state election, and set 
Mr Scharping on his way for 
the chancellor's office come 
the general election in October. 

This week, it all looked like a 
very risky gamble. It is Mr 
Scharping and the SPD who 
are now falling behind, after a 
damag in g defeat in the June 12 
European election. Local elec- 
tions on the same day in 
Saxony-Anhalt saw Mr Kohl's 
Christian Democratic Union 
(CDU) still in front of the SPD, 
in spite of the salary scandals, 
although only by a narrow L5 
percentage point margin (by 
31.2 per cent to 29.7). 

Yesterday’s national Politba- 
rometer opinion poll, broadcast 
by ZDF television, put the CDU 
on 40 per cent nationally, to 
just 36 for the SPD. As for Mr 
Scharping. he is trailing Mr 
Kohl in the race to be the next 


chancellor by 48 per cent to 41 
- a reversal of their fortunes at 
fixe turn of the year. 

On Wednesday, the mood an 
the ice-rink was grim. Yet 
everyone knew they had to put 
on a good show. Mr Scharping 
rose to the challenge. He deliv- 
ered a storming speech. In 
complete contrast to his nor- 
mal wooden, preachifying 
style. He mocked the “fat man” 
in the chancellor’s office, 
denounced the inequities of 
west German materialism and 
east German joblessness, and 
told his detractors in the party 
to “put up. or shut up". 

The question Is whether his 
newfound fury has not come 
too late. For the tide serais to 
be r unning a gains t the SPD, in 
both east and west The party 
haa been unable to maka a 
dear political breakthrough, in 
spite of still rising unemploy- 
ment and last year's sharp 
recession, and even against a 
chancellor like Mr Kohl, who 
has never been genuinely pop- 
ular. Many question whether 

the SPIN'S maiaigp is not more 
fundamental than a question of 
policies, or of pers on ali t i e s. 


“This is a very difficult timp 
for social democracy,” says Mr 
Jtfrgen Burekhardt director of 
the Friedrich Ebert foundation, 
the SPD think tank. "It is very 
difficult to formulate policy 
under our ch a n g ed circum- 
stances, because you can only 
tell people nnpleasant things.” 

In areas sudh as the exten- 
sion of social benefits, or the 
protection of lower income 
groups — classic social demo- 
cratic themes - the SPD now 
admits that public funds are 
not adequate to the task. 

Y et in seeking to be 
realistic and blunt 
about the financial 
possibilities, it is alien- 
ating both its traditional voters 
and new, more prosperous 
groups. “The main themes for 
which social democracy always 
stood, and their main voters, 
are no longer recognisable,'’ 
says Mr Karl-Rudolf Korte, 
head of the Germany political 
science research group at the 
University of Mainz. “If every- 
thing comes together in a great 
middle-of-the-road coalition, 
where will be the specific 


themes for the SPD?" 

Ever since he was elected 
leader just one year ago, Mr 
Scharping hut cnvig ht. to move 
fife party towards the miHdia 
ground, to present it as a safe 
and stable alternative govern- 
ment, and one which might be 
more competent economically. 

Yet it is precisely on the 
question of “economic compe- 
tence” that the voters appear 
to have lost faith with the SPD. 
In January, a majority rated 
the opposition above the ruling 
coalition on that question. But 
as signs of economic recovery 
have started to multiply, they 
have changed their minds. 

“The election strategy of the 
SPD has foiled,” says Mr Hans- 
Joachim Veen, director of 
research at the CDITs Konrad 
Adenauer foundation. “It was a 
defensive strategy which was 
wrong from the start, saying; 
*We are like the CDU, hut 
rather better.' That meant they 
were bound to the CDU. They 
did not control the themes. 
They had no profile of their 
own. And the moment the 
economy started to improve, 
the CDU could only gain." 

The danger for the Social 
Democrats is that they are 
looking ever more like an 
acceptable party for provincial 
politics - governing at the 
state or local government level 
- but not for the national capi- 
tal. All their main leaders are 
state politicians. 

Mr Scharping's safe, dull and 
provincial image has only com- 
pounded the impression. “He 
prese n ts hrmg»if as a younger 
Mr Kohl,” says Dr Korte. 

The irony Is that the two 
may yet be condemned to gov- 
ern together. For even if Mr 
Kohl emerges victorious, as the 
latest polls suggest, the elec- 
toral mathematics suggests he 
will not command a majority 
with his current coalition. The 
Free Democratic party, Mr 
Kohl’s current partner, Is 
weak, and may barely scrape 
back into the Bundestag. 

As for as the social demo- 
crats are concerned, their 
strategists seem already to be 
prepared to contemplate a set- , 
back in October. 

“I am convinced Scharping 
has a rhanoa in the medium i 
ter m , even if he does not make 
it this autumn," says Mr 
Burekhardt “Halle convinced 
me. He has got what it takes. 
This man is 46. And look how 
long it took Willy Brandt" 

Mr Brandt became chancel- 
lor at 55. 


George Graham on the political battle against US tobacco groups 

Hunt for a smoking gun 


M r Thomas SandefUr, chair- 
man of cigarette manufac- 
turer Brown and Williamson, 
was the very picture of the 
tobacco executive at bay this week. Sev- 
eral times his lawyer advised him not to 
answer as he defended his company before 
a hostile congressional committee against 
charges that it manipulated the levels of 
nicotine In its cigarettes to keep smokers 
addicted. 

Repeatedly in recent weeks the chair- 
man and chief executives of leading US 
cigarette manufacturers have been hauled 
before a panel of disbelieving members of 
congress, chaired by Congressman Henry 
Waxman. to repeat that they do not 
believe nicotine to be addictive, and do not 
believe their cigarettes cause lung cancer. 

The congressional hounds drew closer to 
their quarry this week when Dr David 
Kessler, commissioner of the US Food and 
Drug Administration, an agency of the 
health department, denounced Brown and 
Williamson for developing a strain of 
tobacco plant with twice the normal levels 
of nicotine. 

“These findings lay to rest any notion 
that there is no manipulation and control 
of nicotine fin the manufacture of ciga- 
rettes!”, Dr Kessler said. 

Mr Sandefnr was the immediate target 
in a quest - he calls it a “crusade" - by 
the FDA for evidence that might justify it 
defining nicotine as a drug, allowing it to 
assert its regulatory authority. 

Brown and Williamson, owned by the 
UK conglomerate BAT industries, has 
faced particularly dose scrutiny because a 
cache of internal documents about its 
research and marketing operations, which 
the company alleges were stolen by a dis- 
gruntled employee, has made its way tetn 
the hands of Mr W avman 
But research papers and internal memo- 
randa from other companies are also turn- 
ing up which have added piece by piece to 
the picture of an industry that has not just 
Ignored, but actually concealed, the evi- 
dence about the addictive and carcino- 
genic properties erf its products. 

Amid all these disclosures, Ms Janet 
Reno, the attorney general, this week 
announced that the justice department 
was examining an array of allegations 
against the tobacco industry that could 
lead to criminal, civil and antitrust inves- 
tigations. 

Dr Kessler’s strategy for taking on the 
tobacco industry is unclear. The bearded 
and bespectacled paediatrician came late 
to the anti-smoking crusade, which he 
declined to pursue during his first two 
years as commissioner. 

In the past, file FDA limited itself to 
regulating nicotine in chewing gum or 
patches to help people stop smoking, and 
to prev e nting cigarette makers advertising 



their products' benefits, such as weight 
loss. Dr Kessler now speaks with all the 
fervour of the convert The logic of his 
quest if he finds more compelling evi- 
dence than the FDA yet possesses that 
nicotine is addictive, would lead him to a 
complete ban on nicotine-bearing ciga- 
rettes. or at least to stria limits on nico- 
tine context 

But Dr Kessler has warned of the dan- 
gers of prohibition. “One must consider 
the possible effects of the loss of this 
source of nicotine on the health of some 
people who are addicted. It is also impor- 
tant to consider the potential for a black 
market in nicotine-containing cigarettes,” 


The logic of Dr Kessler’s 
quest would lead him to 
a complete ban on 
nicotine-bearing 
cigarettes 


he told Mr Waxman’s committee. 

Congressional opponents of smoking 
also shy away from talk of prohibition. 
Legislation being considered in Congress 
to give the FDA explicit power to regulate 
tobacco (currently defined as neither a 
food or a drug), sponsored by Congress- 
men Richard Durbin of Illinois and Mike 
Synar of Oklahoma, would specifically bar 
thp agency from banning cigarettes. 

Mr Synar acknowledges that his bill 
would not pass If it included the threat of 
prohibition. But the tactics he has adopted 
highlights how hard it will be to win 
approval for even the less draconian pro- 
posals he is making: he has tried to attach 


the measure to the agriculture spending 
bill, which many legislators from tobacco 
growing states will in the end feel com- 
pelled to vote for, rather than presenting it 
on its own. “If the bill could stand on its 
own they wouldn't resort to this backdoor 
tactic,” said Mr Tom La win. a spokesman 
for the Tobacco Institute, the industry lob- 
bying group. 

Mr Lawia's confidence reflects the reali- 
ties of congressional politics: despite the 
bashing the tobacco industry has received 
over the past year, its political muscle is 
still considerable. Political action commit- 
tees run by the Tobacco Institute and indi- 
vidual manufacturers gave more than Sim 
to federal candidates last year. 

In addition, the industry is developing a 
grassroots lobbying strength. The National 
Smokers Alliance, run by Burson Mar- 
stefler, a public relations firm with close 
ties to cigarette manufacturers, now 
boasts hundreds of thousands of members 
and was active, along with cigarette 
maker Philip Morris, in collecting signa- 
tures to place a prosmoking measure on 
the November ballot in California. 

If approved, the measure would overturn 
hundreds of local anti-smoking ordinances 
and replace them with a less stringent 
state law. 

Congress, however, may turn out to be 
something of a sideshow in a much 
broader onslaught on the tobacco indus- 
try. Anti-smoking campaigners are press- 
ing the attack with new rigour on two 
other fronts. 

First, they are calling for more compa- 
nies and employers to ban smoking in 
public places. A 1993 study by the Environ- 
mental Protection Agency classifying 
secondhand smoke as carcinogenic has led 
to companies such as McDonalds and 
employers such as the Pentagon to ban 
smoking on their premises. 

Second, legal action is being taken to 
force the tobacco industry to pay for the 
health costs of its products. Instead of 
lawsuits brought by individual smokers or 
their bereaved relatives against the com- 
pany to whose products they attribute 
their lung cancer - a type of case the 
cigarette makers have almost always won 
- a new wave of claims is being filed by 
state governments against the tobacco 
industry in general. 

For tobacco executives such as Mr San- 
defw, however, the immediate problem is 
the prospect of FDA regulation of nicotine. 
Congressman Ron Wyden of Oregon, 
another foe of smokers, urged Mr Sandefur 
to work with Congress to develop regu- 
lations his industry could accept, or risk 
becoming an “outcast" in tbe debate over 
smoking policy. 

“Congressman, it's hard for me to envi- 
sion becoming more of an outcast than I 
am.” Mr Sandefur replied. 


I 


Part-time workers need 


to avoid benefits trap 


From Mr Peter Ashby, 

Sir, It Is encouraging to learn 
that the UK chancellor is 
investigating ideas for 
"improving the workings of the 
labour market in a humane 
way” (Economic Viewpoint, 
June 23). May one therefore 
ask that he address head-on 
the fact that registered unem- 
ployed people ere, in effect. 
excluded by the benefit system 
from tin* main growth sector in 
the economy: part-time work- 
ing. 

Nowadays, many unem- 
ployed people say that they 
probably have a better chance 
of finding two part-time jobs, 
which together would offer an 
adequate overall income, than 
one full-time job. The problem 
is, however, that under the 
current rules they need to find 
both part-time jobs simulta- 
neously if they are to be able 
to leave the register without 
failing straight into the "bene- 


11L uap ■ 

The best way of helping 
them avoid this would be to 
offer to pay the long-term 
unemployed a "portfolio work- 
er’s allowance” for» s®y> a 


period of six months, once they 
have accepted one part-time 
job. This would give them a 
proper brea th ing space to find 
a second source of part-time 
income that fits comfortably 
alongside the first - or, maybe, 
persuade their employer to 
convert the part-time job into a 
fan-time one. 

The idea is being piloted by 
T raining and Enter prise Coun- 
cils in Lincolnshire and south 
London, and the results are 

pnemira g in g . To make a signifi- 
cant impact, however, there 
would need to he a national 

initiative, with national mar- 
keting to the unemployed 

The idea of a portfolio work- 
er's allowance is probably the 
best, and simplest, Idea that 
has been developed for same 
years to help the long-term 
unemployed. It would also he 
cost-effective for the Treasury. 
If tbe chancellor adopted this 
idea, many thonsandc of unem- 
ployed adults could use it to 
gain access to real jobs. 

Fete* Ashby, 

Full Employment UK. 

79 Prince George Road, 

London NZ6 SDL. 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmit te d should be clearly typed and not hand written. Please set fox for finest resolution 


Scientists strong on religion 


From Dr Denis Alexander. 

Sir, Professor John Postgate 
(“Religion: are we better off 
without it?” June 18/19) is mis- 
taken in fhfriirrng that "few sci- 
entists" are to be found ’hold- 
ing _ “religious beliefs". 
Christians in Science is only 
one of a number of interna- 
tional organisations represent- 
ing many thmuumds of Chris- 
tians engaged in scientific 
research, a good number of 
them holding chairs of science 
in British u n iv e rs iti es. Consid- 
ering the powerful impetus 
that the Christian world-view 
provided to the emergence of 
modem science in 17th century 
Europe, this substantial Chris- 
tian presence within the scien- 
tific community is not surpris- 
ing, since the two-way traffic 
of ideas between and 

forth has continued unabated 
ever since. 

Prof Postgate's suggestion 
that “scientists who are reli- 
gious" have to “dose down" 


their critical faculty for reli- 
gious work, is embarrassing in 
its inaccuracy. A steady 
stream of recent books by vari- 
ous scientists has illustrated 
the way in which research 
work has frequently pushed 
agnostics and atheists down 
the pathway to theism pre- 
cisely because they have used 
their critical faculties. 

Science & Christian Belief 

to explore the relation- 
ship between science and faith 
at an academic level As editor 
I read all manuscripts submit- 
ted to line journal. At the same 
time, I referee a large number 
of articles submitted to scien- 
tific journals. I can find no 
basis for Prof Postgate’s claim 
that different standards of crit- 
ical academic assessment 
apply in these two spheres of 
science and religion. 

Prof Postgate's comments 
about religion and war reiter- 
ate tired arguments that miss 
important points. In light of 


the fact that more than 40 per 
cent of the scientific research 
and development budgets of 
most western nations are com- 
mitted to developing ways of 
IriHing other people, his claim 
that tbe scientific community 
is living on some “moral high 
ground” is surprising. Scien- 
tists have been notorious for 
contributing their skins to mil- 
itary enterprises, so tbe idea 
that the scientific community 
as a whole is “above” such 
blood-thirsty activities is ridic- 
ulous. Yet scientists do not 
give up science because it Is 
widely misused any more than 
people give up sex because of 
the existence of rape. Simi- 
larly, the appropriate response 
to ywistififl of religious belief is 
not to confront religion per se, 
but to oppose its misuse. 

Denis Alexander, 

Editor, Science & Christian 
Belief. 

77 Beaumont Road, 

Cambridge CB1 4PK 


Set the right 
standards 

From Dr Mtke Asher 

Sir, Richard Gourlay’s 
article, "Quality under fire” 
(June 21), on the attack against 
BS5750 makes excellent points. 
In particular, the fact that 
organisations not accredited by 
the National Accreditation 
Council for Certification Bod- 
ies are allowed to issue certifi- 
cates to companies saying they 
have BS5750, introduces wide 
variations in standards, and 
brings the whole system into 
disrepute. 

The Department of Trade 
and Industry should act to stop 
this outrage and give publicity 
to the role erf the NACCB. Only 
when this happens will buyers 
know for certain about the sup- 
pliers they deal with. 

Mike Asher, 
managing partner, 

The Quality Partnership, 

11 Hale Road, 

Altrincham, Cheshire 


No light on the problem 


From Ms Sue Wake. 

Sir, Re Observer’s story, 
“Checking out” (June 22), there 
cannot be many visitors to 
Moscow over the past few 
years who regret the (tempo- 
rary?) closure of tbe Rossiya 
Hotel. This building was con- 
structed, I believe, for tbe 
Olympic Games which were 
not in fact held in Moscow as 
planned. However, local folk- 
lore opined that the cock- 
roaches were brought In by for- 
eign athletes taking part in the 
substitute Goodwill Games. 

As conference organisers it 
has been our lot to be accom- 
modated at the Rossiya from 
time to time and delegates, 


speakers and staff have all suf- 
fered the indignities of these 
light-sensitive creatures. Our 
prize for fortitude however 
goes to Mrs Barbara Mills who 
spoke at our event. Europe- 
USSR late and cooperation, in 
1991 when director of the Seri- 
ous Fraud Office. At a farewell 
dinner during which discus- 
sion turned to 'roaches she 
admitted that, as she had not 
bad a single light bulb in her 
room for two days, she was 
unaware of the problem. 

Sue Wake, 
managing director. 

Interforum Services, 

565 Fulham Road, 

London SW6 1ES 


Benefit of employee ownership 


From Mr Nigel Mason. 

Sir, Those who think reserv- 
ing 10 per cent of the shares in 
a privatised Post Office CPO 
staff may get free shares in 
sell-off”, June 20) is a waste of 
scarce equity might examine 
the evidence In the US. 
Employees own an average 12 
per cent equity in more than a 
quarter of the Fortune 500 
industrials. This is not atom- 


ism. An index of 265 public 
companies where employees 
own at least 10 per cent of the 
equity, compiled by a team at 
Rutgers University, outper- 
formed the Standard and Poors 
500 Index by 26 per cent over u 
quarters to September 1993. 
Nigel Mason. 

Capital Strategics. 

59 Charlotte Road, 

London EC2A 3QT 






TIMES 



COMPANY NEWS: UK 


When price cuts prove price sensitive 

David Wighton on the reaction of the Stock Exchange to recent Telegraph share sales 


T he speed with which the 
Stock Exchange moved 
to investigate recent 
trading in The Telegraph- 
shares may reflect the determi- 
nation of Mr Michael Law - 
rence, the new chief executive, 
to give more foots to Its regu- 
latory role. Bat its equally 
swift clearing of last month’s 
Bollinger share sale came as 
little surprise to City lawyers. 

An ingMwr Healing Specialist 

from a leading City firm said: 
"When a sale of that size is 
proposed there would he such 
dose scrutiny to ensure there 
was no unpublished price-sen- 
sitive information .involved 
that 1 find it inconceivable that 
there would be any evidence 
connecting the sale with the 
Telegraph price cut” 

The freedom of directors of 
listed companies to deal in 
their shares is restricted by the 
listing rules of the Stock 


Exchange. These Include a 
model code which forms the 
minlmmn rules a com pany 
must adopt to cover directors' 


Zt requires directors to 
receive clearance from the 
chairman or other designated 
director for any dealings in the 
company’s shares. Such clear- 
ance must not be given for 
deals during “close" periods 
ahead of announcement of 
financial figures. 

For a company that reports 
quarterly, like The Telegraph, 
the close period covers the 
month immediately preceding 
the announcement of figures. 

Dealings are also prohibited 
in “any period when there 
exists any matter which consti- 
tutes unpublished price sensi- 
tive information in relation to 
the company's securities 
(whether or not the director 
has knowledge of such matter) 


and the proposed dealing 
would take place after the Km* 
when it has become reasonably 
probable that an announce- 
ment will be required in rela- 
tion to that matter”. 

The Stock Exchange investi- 
gation has found no evidence 
that a cut in The Daily Tele- 
graph's cover price - which 
has proved highly sensitive for 
The Telegraph share price - 
was contemplated at the time 
of the Bollinger stake sale. 

There have been very few 
successful insider dealing pros- 
ecutions against directors, 
hugely because of the require- 
ment for trades to be cleared 
by other board members. The 
biggest to date was the convic- 
tion in 1991 of Mr Ivor Good- 
man, former chairman of Uni- 
group. the Leeds-based timber 
and clothing company. He 
received an 18-month prison 
sentence after pleading guilty 


to selling £L2m of shares in 
the company just before it 
announced worse- than-expec- 
ted figures. 

The Stock Exchange is 
thought to be pursuing investi- 
gations into sales of Telegraph 
shares by employees ahead of 
the price cut announcement 
But Insider dealing experts 
believe it is very unlikely that 
prosecutions wfll result 


T he new insider dealing 
rules which came into 
force in March prohibit 
someone from dealing In secu- 
rities when in possession of 
information relating to the 
securities, which is “specific or 
precise” and which if made 
public would have a significant 
effect on the securities’ price. 

Given the number of Tele- 
graph employees who own 
shares in the company, there is 
always a steady flow of share 


trades. So it is likely that some 

employees sold shares in the 
run up to the price cut when 
♦han e was increasing internal 
speculation about such a move. 

A leading lawyer said that in 
circumstances it would 
be easy to mount a legal 
defence even If such sales had 
been prompted by the specula- 
tion. 

“The prosecution would have 
to show that the information 
was ‘specific and precise’ and 
that the defendant knew it 
came from an inside source, 
and was not just a rumour.” 

Another defence is that the 
shares would have been sold 
regardless of tfae inside Infor- 
mation. M Given the state of the 
stock market and the amount 
of public comment about the 
newspaper market it would be 
easy to argue that the shares 
would have been sold any- 
way.™ 


Prudential pays £73. 5m 
for Welsh shopping centre 


By Vanessa Houlder, 
Property Correspondent 


The' Prudential has bought the Cwmbran 
shopping centre, the largest centre in Wales, 
for £7&5m from Ladbrohe Group and a trust 
belonging to Mr Leo Noe, chairman of Bourne 
End, the property company. 

The p r o p e rty comprises 170 shops occupying 
750,000 sq ft Tenants include Marks and Spen- 
cer, J Sainsbury, Asda -and Boots. 

Ladbroke’s sale of its 50 per cent stake for 
£36J8m represents a small surplus over book 
value at the end of 1993. The initial yield on the 
deal was about (L5 per cent 
The deal brings the total sales of commercial 
proper t y by Ladbroke this year to about £140m. 
Mr Pieter George, group chief executive, said 
that negotiations were continuing in respect of 
other properties and further disposals were 
anticipated during the remainder of the year. 
The deal is the sixth prop erty acquisition 


exchang ed or completed by the Prudential this 
week. It has spent £400m on buying a Wolver- 
hampton shopping centre, a parcel of properties 
from Burton P r o pe r ty Trust and a 50 per cent 
share of Wlmpey’s little Britain office scheme 
in the City of London. 

Mr Chris Taylor, p r operty investment direc- 
tor of the Prudential, said that the insurer was 
continuing to look for potential acquisitions. 
“Now the investment market has gone off the 
boil, it is easier to find value.” 

• Eskmuir Properties, the property investment 
company owned by the Laing family, has 
bought £24m of investment property, to take its 
portfolio to a total value of about £I70m. 

Eskmuir said it “had taken advantage of the 
recent softening of the market”. The average 
yield was more than 8 per cent 

It has bought its own building in London’s 
West End, as well as an office bonding in 
Watford, Hertfordshire, three Leeds office 
bondings, and four warehouse properties. 


Float values UCM at £19m 


By Peggy Hoffinger 


The weak stock market has not 
stopped Universal Ceramic 
Materials* flotation plans as 
the manufacturer of r efr ac t or y 
and heating element products 
yesterday announced it had 
placed (L97m shares at 86p, giv- 
ing it a value Of £19m. 

UCM has had. to compromise, 
however, on the amount of 
new cash it can nose. Against 
hopes of between £8m and 
£10m, it will raise just £6m. 
After redemption of preference 
shares and expenses it will 


receive same 

Mr Bob Hughes, chief execu- 
tive, said that though the cli- 
mate bad h pen HlfBenlt, he was 

HniigbteH with the outcome of 

flw p laning 

Sponsors Beeson Gregory 
had managed to get the placing 
away with a price comparable 
to expectations just a day later 
than planned, after discussions 
with Scottish institutions ear- 
lier in the week. 

Delaying the flotation any 
longer would have hindered 
plans to expand alumina capac- 
ity, to prepare for the with- 


drawal from the continental 
European market of two large 
competitors, he said. 

UCM reported pre-tax profits 
up from £683,000 to £L7m for 
1993 an sales 12 per cent higher 
at £26.7m. Mr Hughes said 
sales in the current year were 
ahead of 1993. 

After flotation, the company 
expects to be less than 20 per 
cent geared. 

The board, which is selling 
872^94 shares, is expected to 
hold 15 per cent of UCM. A 
consortium of venture capital- 
ists will hold 40 per cent 


Kewill £4m in the 
black and resumes 


dividend payments 


By Alan Cane 


Kewill Systems, the USM- 
quoted computer software and 
systems group, is paying divi- 
dends again, the trauma of 
struggles with Weigang, its 
ill-starred former subsidiary, 
behind it 

For the year to March 31 it is 
proposing a final of 5p, the first 
for two years, from earnings 
per share of 23p, against losses 
of 50-99P. 

The payment is a reflection 
of a capital reconstruction 
and a much improved perfor- 
mance. The shares rose 9p to 
284p. 

Profits before tax reached a 
record £444m, compared with 
a loss of £S.19m restated for 
FRS 3 and struck after a loss 
of £5.63m on the sale of Wei- 
gang, a German software 
house. 

Turnover fell 4.7 per cent 
to £31. 8m, against £33JJm. 
which included £2^4m from 
Weigang. The decline also 
reflected the fall in hardware 
values affecting the computer 
industry. 

Borrowings were reduced 
from £3A6m to £77,000 during 
the year and have since been 
reduced further. The interest 
charge fell from a net £809,000 
to £305,000. 

Kewill specialises in soft- 
ware for manufacturing and 
accountancy and has a new 
and fast growing interest in 


electronic document inter- 
change. 

Mr Kevin Overstall, chair- 
man, said there were few signs 
of new investment yet among 
companies in the UK and 
Europe but trading in the US 
was much improved with prof- 
its up to £l-2Lm, compared 
with £280,000. 

“New products, improving 
economic conditions mid fur- 
ther reductions in operating 
costs all point to continued 
profitable growth over the 
coming year” he said. 


The saga of Kewill and Wei- 
gang. purchased for a song in 
1991. should serve as a caution- 
ary tale of ovoseas expansion 
for small companies. The 
acquisition went wrong and 
Kewill's management found 
itself out of its depth In a for- 
eign country and a fn rH g*> lan- 
guage. An investment of 
£500400 turned, in two years, 
into a goodwill write-off of 
by the tihie the company 
was disposed of to its manage- 
ment. During this sorry epi- 
sode, however. Kewill’s basic 
busness remained sound and 
profitable despite the reces- 
sion. Its software is generally 
well regarded and it is looking 
to acquire compatible compa- 
nies - in the UK. this time. 
With Weigang a lesson learned, 
the shares, on a historic p/e of 
12, are cheap. 


JBA coming to market via placing with £53m valuation 


By Aten Cane 


JBA International is coming to the 
market by way of a placing which val- 
ues the Birmingham-based computer 
software house at £52JBxn. 

Some 119m ordinary shares are being 
placed at 160p, or 364 per cent of the 
enlarged share capitaL The rest of the 
Stodk is held by 'the raanagaman t and 


institutions, although International 
Business Machines has retained its 
holding of just over 5 per cent 
About £L24m is being raised. After 
expenses and redemption of preference 
shares, same £9 Am will be available to 
the company to help fond its expansion 
in mainland Europe. The placing Is 
sponsored by Kteinwort Benson which 
is also underwriting the offer. 


At the pladng price, the p/e based an 
test year’s earnings is 164, slightly 
lower than the sector average. 

Mr Alan Vickery, chairman, said the 
offer price was lower than he had antic- 
ipated two months ago, but indicated 
the state of the market place where 
stocks had not only to reflect quality 
bat also keen pricing. 

JBA specialises in writing software 


for IBM’s AS/400 midrange computer 
family; it claims to be the US computer 
manufacturer’s largest business associ- 
ate in Europe. 

Pre-tax profits last year were £4.7m 
when about one third of its £7A5m turn- 
over came from the US. 

Mr Vickery said there had been some 
interest in the planing from US inves- 
tors. 


Syltone 
rises 18% 
to £2.5m 


NEWS DIGEST 


Profits before tax at Syltone 
advanced 18 per cent during 
the 12 months to March 31, 
underlining the encouraging 
stance adopted at the halfway 
stage by Mr Tony Clegg, chair- 
man of the Bradford-based 

transport engineering group. 

On turnover ahead to £39 5m 
(£36.7m) - some 60 par emit of 
the group’s sales go to export 
markets - the pre-tax line rose 
from £2. 13m to £2. 52m. 
Although still short of the. 

£2£7m reported for 1991-92, Mr 

Clegg said: "We are heading in 
the right direction and are not 
short of ideas for expansion.” 

The core business, Drum, 
which is the UK market leader 
in truck discharge equipment, 
reported strengthened order 
books and higher profits, 
althoug h activities in continen- 
tal Europe lagged growth else- 
where. The group has severed 
its link with Alfdns Haar, Its 
distributor in Germany. 

Fully diluted earnings per 
share emerged at 8£3p OSSp). 
The final dividend is 3-3lp, 
making a total of 4A35p (4.725p 
adjusted for scrip issue). 


2.06p (L88p). An increased final 
dividend of 0975p is recom- 
mended for a total of 0.4p 
(0-375p). 

Vis tec said second half 
growth was accelerated by the 
acquisition of ISO Communica- 
tions test November and Data 
Logic Communication Services 
in February 1994. These pur- 
chases had broadened the 
group's range of network ser- 
vice products and expanded its 
client base. 


Rullers anticipates 
return to the black 


VIstec picks up 
in second half 


After a patchy first half, VIstec 
Group, the USM-quoted com- 
puter systems and software 
concern, made some headway 
to end the year to ApriDi 30 with 
pre-tax profits ahead by 4 per 
cent to £3.41m, compared with 
£328m adjusted for FRS 3. 

Turnover rose 16 per cent to 
£45m while earnings per share 
rmHpr frs 3 came through at 


Bullers, the giftware and deco- 
rative products group which 
earlier this year expanded Into 
media services, yesterday 
reported pre-tax losses of 
£L23m for the six months to 
December 31. 

The deficit, which, included 
losses of £28^000 from discon- 
tinued operations, compared 
with losses of £L42m for the 
year ended June 30 1993 and 
was struck on turnover of 
£L6m (£2-48m). 

Mr David Cunningham, 
chairman, stressed that the 
"poor” outcome preceded' the 
acquisition of Clashfleet for a 
maximum £2ifen, funded by a 
placing and open offer, and a 
substantial capital reorganisa- 
tion and debt conversion. 

Hie anticipated that "all the 
group’s subsidiaries will be 
firmly into profit” in the sec- 
ond half of the current year 
with “significant profits” for 
1995. 

Losses per share emerged at 
053p <L22p). 


lowing the announcement of 
increased pretax losses for the 
six months to March 31. 

The shares have fallen from 
a high of I85p this year and are 
dose to the price of 12Qp at 
which they were floated on the 
USM In September 1992, but 
below the 175p at which the 
company raised £2m in a plac- 
ing in April Hite year. 

Pre-tax losses increased from 
£483400 to £L0lm as a result of 
increased spending on research 
and development Losses per 
share were more than doubled 
at 4.4p (2JLp). 

Since the period end, the 
company has launched one of 
its core products. Fares or food 
antibiotic residue analysis sys- 
tem. 

The company is intending to 
change its rut me to Tepnel Life 
Sciences “to reflect the scope 
anH potential of Hia company”. 


months in 1992-93) and the 
introduction of fabric supply to 
the automotive industry. 

Interest charges fell to 
£820,000 (£920,000) and net 
earnings per share were lp 
higher at 2.6p. The recom- 
mended final dividend of 0£5p 
makes a total of l.6p (L5p). 

Mr Ralph Ellis, chief execu- 
tive, said the group was well 
structured to achieve accept- 
able performance at the cur- 
rent level of activity and “we 
remain confident that we will 
be able to sustain, steady posi- 
tive growth”. 


Four shareholders have 
undertaken to accept in 
respect of 34J9 per cent of the 
issue. The balance has been 
placed conditionally, subject to 
a l-for-2 clawback offer to 
existing shareholders. 

The company, which is seek- 
ing a listing on the Irish Stock 
Exchange, is estimating pre-tax 
profits of not less than £l Jm 
(£156,000 loss} for the year to 
April 30, giving earnings per 
share of 5.06p (0.44p). 


M&G Second Dual 
net assets rise 


Arthur Shaw £0.6m 
in the black 


Approval for British 
Gas C anadian sale 


British Gas has received 
Ontario government and regu- 
latory approval for the sale of 
its 85 per cent interest in Con- 
sumers Gas of Toronto to Inter- 
provincial Pipe Line System of 
Edmonton, Alberta. 

in line with the agreement 
reached on November 19 last 
year British Gas wfll receive 
CJlJZbn (£566m). 


Stoddard Sekers 
advances to £2.1m 


Tepnel shares fall on 
higher losses 


Shares in Tbpnel Diagnostics, 
the biotechnology company, 
fell 28p to I21p yesterday fol- 


Despite a dull trading environ- 
ment, Stoddard Sekers Interna- 
tional, the carpets and furnish- 
ing fabrics maker, lifted 
pretax profits by 42 per cent 
from £L51m to £2.14m in the 
year ended March 3L 
Turnover rose 8 per cent to 
£59.701 (£55 .4m} as a result of a 
foil contribution from BMK (10 


Arthur Shaw, the USM-quoted 
maker and supplier of security 
fittings for windows and of 
engineered products and ser- 
vices. achieved pretax profits 
of £607.000 in the year to April 
3, compared with losses of 
£99,000. 

The group returned to profit- 
ability at the interim stage and 
Mr Ian Tickler, chairman, said 
he looked forward to fortber 
profit growth in the current 
year. The group was continu- 
ing to expand its research and 
development programme and 
widen its range of products 
and markets. 

Turnover improved by 20 per 
cent to £20 An (£16Am). 

Earnings per share came 
through at 4JB7p (lfi8p losses) 
and a final dividend of L5p is 
proposed, making 2p (nil) for 
the year. 


M&G Second Dual Trust, the 
split capital investment trust, 
reported net asset value per 
capital share up from 5499?p 
to 601-Qlp over the year to May 
31. 

Net revenue for the year to 
the end of May was £2_4m 
(£2.39m) for earnings per 
income share of 24.03p (23JB7p). 
A proposed final dividend of 
10.75p makes a total for the 
year of 23£7p (23J36p). 


Wagon acquires 
Evercheck pref 


Ewart seeks £4.85m 
for expansion 


Wagon Industrial Holdings has 
acquired the preference share 
capital of Evercheck, holding 
company of Montan Group, 
from the Royal Bank of Scot- 
land for £2L5m. The consider- 
ation will be 534,188 shares 
which have been conditionally 
placed. 

Wagon acquired Evercheck’s 
ordinary share capital on 
March 31 for a nominal, consid- 
eration. 


Ewart, the Belfast-based prop- 
erty company, is seeking a net 
£<L85m through a placing and 
open offer of 9.42m shares at 
55p. 


CIA expands in 
Europe with AB buy 


CIA Group, the advertising ser- 
vices company, has acquired a 


Azlan 
shares fall 
10% on 


warning 

By Alan Cam 


Shares in Azlan Group, a 
distributor of ad vanced 
computer networking 
products, fell 10 per cent 
yesterday following a warning 
that profits in the first half 

of the current year would not 
iwatpii those of test year. 

The shares were marked 
down from 280p to 252p 
despite results for the year 
to Match 31 which saw sales 
rise 49 per cent, from £4L2m 
to £61 .5m, and pre-tax profits 
grow from £29Sm to £3J37bL 

Earning s per share came 
to 12.4p (8-4p). 

The group, which came to 
the main market last 



November at 23Qp, plans to 
pay a final dividend of 2p - 
as Indicated at the time of the 
flotation. 

Mr David RaudaU, managing 
director, said the results were 
achieved by continued growth 
in the UK and improved 
performances in Germany and 
Denmark. He said profitability 
in the first half at the current 
year would be reduced because 
of a change in buying patterns 
among customers. 

They were moving from 


repair and maintenance of 
existing equipment to the 
purchase of new systems. This 
required a longer buying 
cycle. Orders and prospec tiv e 
orders were at an all-time 
high. Mr Randall stated. 

Azlan had. furthermore, 
derided to introduce new and 
more complex products and 
phase oat older technologies: 
“This strategy, while limiting 
UK sales growth In the short 
term, is enabling us to 
maintain product grow 
margin percentages while 
phasing In a series of new 
products”, be said. 

Mr Randall added that tbe 
majority of the yearns profits 
would be made in the second 
half. 


EuroDollar 

priced at 220p 


By Paul Taylor 


Shares In EuroDollar, the UK’s 
second hugest car hire gnwP 
which is coming to market via 
a placing and public offer, were 
priced yesterday at 220p. valu- 
ing the group at £107 An. 

EuroDollar. the subject ofa 
management buy-out from TSB 
last year, bad originally 
planned to issue its prospectus 
and pricing details on Wednes- 
day. However, the group post- 
poned the flotation In the wako 
oT turbulent market conditions 
earlier In the week in order to 
continue book-building. 

The group, which has a UK 
Beet of about 12.000 vehicles 
and operates from 10“ 
branches across the country, 
claimed a 10 per cent share of 

the fragmented £S83m domestic 

car hire market last year. 

EwoDollar has specialised In 
the business rental market and 
77 per cent of its UK rental 
fawonift comes from corporate 
customers. In the year to 
March 31. the group reported 
pre-tax profits from continuing 
operations of £12. 6m on turn- 
over of £73L8ra. 

The issue, which is spon- 
sored and folly underwritten 
by Sehroders, comprises 22.7m 
shares of which 18.3m are 
being Issued by the company 
with the remainder sold by 
printing shareholders. 

The offer will raise about 
£37.7m net of expenses, which 
will be used to fond the 
redemption of the outstanding 
preference share capital, held 
by the Institutional Investors 



Ian Moriey: good sepport from 
over 80 Institutio ns 


who participated ~io the 
buy-out. 

Of the total, some 17m 
shares have bean placed with 
Institutional and other tores 
tore and the rema inin g 5.68m 
are befog offered for sale to the 
public. 

Following the flotation, issti- 
tutiOoal shareb afctora wig hoM 
about 14.BK shirts (30.5 per 
cent) and the group's director* 
win hold &Wm shares, repre- 
senting a it? per rent stake. 

Yesterday Mr Ian Mosley, 
chM executive, said he was 
pleased with the price which 
was broadly to fine with expec- 
tations. H* raid the feme had 
received good support from "to 
excess of to hatuttionsV 

SG Warburg Securitas is 
broktt to tbe offer and dare 
dtottogx art due to begin os 
July 6. 


Strong second half helps 
MM1 recover to £1.2 Ira 


By Peter ft au ldta 


MML which through a aertes of 
acquisitions has transformed 
Use* from a sponsorship and 
financial marketing company 
into a business commrtntoa- 
tiona group, consolidated its 
recovery at the interim stags 
with a strong second half, 
reporting a pre-tax profit of 
£L2lm for the year to end-Ftab- 
niary. 

Tbe outcome compered with 
a deficit of £03.000 tart time 


Grand Metropolitan sells 
low margin wine brands 


By Peggy Hofflnger 


Two oT the leading wine brands 
in the US are to change hands 
in a proposed deal between a 
US subsidiary of Grand Metro- 
politan and one at the coun- 
try’s leading wine producers. 

Heublein, a GrandMet sub- 
sidiary, has signed a letter of 
intent to sell Almaden and 
Inglenook wines, as well as 
several Californian wineries, to 
Canandaigua Wine Company 
of New York. 

The Almaden Ingtenook 
brands are the third sixth 
largest selling wine brands in 
the US with more than 13 per 
cent of the overall market 


GrandMet is selling the 
brands as part of its focus on 
higher margin products. Alma- 
den and Inglenook an cheaper, 
higher volume wines, with 
lows- margins. . . 

The businesses recorded net 
sates in the year ended Septem- 
ber 30 of 3235m (£i55m) and 
were profitable, GrandMet 
said. Tbs price has not been 
disclosed, and the deal must 
wait for regulatory approval 
ft is thought the agreement 
will be closely examined as 
Canandaigua is the second 
largest wine producer in the 
US, with brands such as Paul 
Masson and Taylor California 
Cellars. 


34 per cent stake in AB Media, 
the Paris-based independent 
media concern. 

The USM-traded group will 
acquire the outstanding 66 per 
cent within 28 days. 

Consideration amounts to 
FFrl9m (£2.2m) cash and the 
issue of 283,423 shares to the 
vendors. An additional FFi3m 
has been placed in escrow, pay- 
able in June 1997. A further 
profit-related payment erf up to 
FFrlQm may become payable 
in 1998. 


pany, with technical help from 
Unilever. 

Brands in the venture will 
include Omo detergent, though 
not in its controversial new 
Tower* formulation. 

The agreement, involving 
three of Sachet's seven facto- 
ries. is described as an equal 
partnership In operational 
terms. Profits will be split on a 
50-50 basis. 


Next signs joint 
venture deal 


BBA settles US 
litigation for $19.8m 


Cluff to explore 
Lake Victoria 


BBA, the engineering and 
motor components group, has 
settled litigation between its 
Automotive Products subsid- 
iary and Triton Engineering 
out of court for a total of 
(£l£8m). 

The amount, payable In two 
instalments, wfll he taken as 
an exceptional Item in BBA’s 
current year results. 

AP wfll be granted a licence 
to manufacture Tilton’s carbon 
racing clutch, the subject of 
the dispute, and all outstand- 
ing ftteimg against AP trill be 
dropped. 

BBA also announced that 
trading for the first five 
months of the year had been 
encouraging with the benefits 
of the restructuring and subse- 
quent action an the cost base 
beginning to come through. 

The company's shares fell 5p 
to L83p. . 


Mr AJgy Cluff, chairman of 
Cluff Resources, the UK-based 
gold mining company operat- 
ing tn Zimbabwe and Ghana, 
said at the annual meeting 
that he expected next month to 
sign an agreement with the 
Ta n z ani a n government for 
Cluff to explore an area of 190 
sq km on the shores of lake 
Victoria. 

He said the area contained 
the G$ita mine, once East 
Africa's biggest gold producer 
but which closed In 1966. 

Development of the Freda 
underground gold mine in Zim- 
babwe was on schedule and on 
budget, said Mr Cluff. Recent 
drilling and exploration work 
made him confident that “the 
Freda mine will be producing 
gold well into the next cen- 
tury”. 


Frogmore purchases 
top £l50m mark 


fr&gHwre Estates, the property 
investment group, boa 
announced a further spate 
of purchases to tako Its 
total spending during the past 
two years to more than 
£l50m. 

The deals Include the ncqui* 
sition for £3.7m of Bredero’s.20 
P« cent interest in the 100,000 
ft Hart Shopping Centre in 
Fleet together with some adja- 
cent land for possible expan- 
sion. 

Frogmore Is also acquiring 
toe former head office slto-ln 
Hertford of Addis, the brush 
kitchenware maker, for 
£7Am. 


I 


■III 


III 

\\ 


•t i 

ft" ’ - 


and was achieved after redun- 
dancy and other oneoff costs 
of £128,000. Turnover rose from 
1733,000 to £14.710. 

Bantings per share emerged 
at 2X6p 087p lessee). 

I n Jitiy tact year the com* 
pany acquired Pelham Commu- 
nications and its subsidiary, 
Park Avenue Productions, 
along with Medtamix, a corpo- 
rate publishing company. 

The directors said that Park 
Avenue had had an excellent 
year, and made the main con- 
tribution to the profit perfor- 
mance. ' 

Thaw purchases are to be 
enhanced by the proposed 
acquisition of WMGO Group, 
in connection with which a 
placing and open offer involv- 
ing the issue at 2&2m new ordi- 
nary lp shares is being nude. 

Some luam shares have been 
conditionally placed with insti- 
tutional investors at 27%p 
apiece, subject to an open offer 
to existing shareholders. 

On completion of the acquisi- 
tion it is intended to change 
the company’s name to WMGO 
Group. 

Having gained the necessary 
approvals to reduce its share 
premium account by the 
amount of the deficit on the 
profit and loss account, MM1 is 
able to pay dividends out of 
profits. Accordingly, directors 
have declared a special interim 
of 0.5p for the current year. 


fel 

to 

m 


-to 

to 

to 


to 

to 

to 


to 

to 


Next, the fashion chain, has 
signed a Joint venture agree- i 
ment with The Limited to open 
Bath & Body Works stores in 
the UK 

Four stores are planned to 
open in the autumn after 
which the brand is to be devel- 
oped nationally. 

The Limited operates 4£58 
speciality stores, including lot- ^ 
ner New York, Abercrombie 9t 
Fitch and Penhaligon's. 


to 

-to 

to 

t* 


Unilever in Cuban 
joint venture 


Unilever has formed a 50-50 
joint venture to make and 
market detergents and toilet- 
ries in Cuba. Manufacture 
wfll be undertaken by Suchel, 
the Cuban state-owned com- 


DIVIDENDS ANNOUNCEn 


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INTERNATIONAL COMPANIES AND FINANCE 


Low crude prices bring 
profits warning from Elf 


By John Rkftfing in Paris 

Elf Aquitaine, the French oil 
gnrap privatised earlier this 
year, yesterday warned that 
first-half recurring operating 
profits would fall by about 20 
per cent, compared with the 
same period in 1993, and that 
net profits would fail by a 
greater proportion. 

In the first half of 1993. Elf 
achieved recurring operating 
Profits of FFr5.6bn (Jlbn) and 
recurring net profits of 
FFriLlbn Yesterday. Elf shares 
fell by FFr14 to FFr390. com- 
pared with a price of FFr385 at 
which they were offered to the 
public In February. 

Mr Philippe Jaffrt, fthairmaw 
said the group's exploration 
and production activities barf 
been hit by low crude oil prices 
during the first few months of 
the year. Although the price of 
Brent crude has recovered to 
more than $17 a barrel, the 
average price for the year to 
date of just under $15 a barrel 

Sherritt in 
Cuban mining 
joint venture 

By Bernard Simon in Toronto 

Sherritt, the Canadian metals 
group, is to form a joint ven- 
ture with Cuba's Companla 
General de Niquel to mine, pro- 
cess and market nickel and 
cobalt 

The partnership is the latest 
move by Canadian mining and 
energy companies to expand 
their presence in Cuba in the 
face of US economic sanctions 

Several European and Mexi- 
can industrial companies have 
gained a foothold in Cuba as 
the climate towards foreign 
investors improves. 

The joint venture will 
include a mmp and ore-process- 
ing facilities at Moa Bay in 
Cuba, as well Sherritt’s refi- 
nery at Fort Saskatchewan, 
Alberta. 

Sherritt buys a large portion 
of Moa Bay's 'output as feed- 
stock for the refinery. 

The two companies said they 
planned to expand ^ mod- 
ernise the Moa Bay facilities, 
and would set up a joint 
marketing company. 


compares with an average of 
SUL30 for the first half of last 
year. 

Mr Jafirfi said the impact of 
this factor had been lessened 
by reductions in exploration 
expenditures a nd through cost- 
cutting measures. However, 
industry analysts added that 
Elf was particularly sensitive 
to on price movements. 

“Elf is a much bigger pro- 
ducer than most other Euro- 
pean oil groups, such as 
Total,” s aid Mr Mark Flannery, 
oil and gas analyst at BZW. He 
said the rise in the oO price 
over the past few months 
should prompt a strong recov- 
ery in profits in Elf s explora- 
tion and production 
businesses. 

First-half profits at Elf have 
been affected by weak demand 
in tt)p refining and 
sector in France and other 
principal European markets, hi 
addition, operating income in 
this sector was reduced by the 
costs of restructuring the com- 


pany’s Minol service station 
network in eastern Germany. 

The decline in profits will be 
amplified at the net level 
because of an increase in finan- 
cial charges, according to Mr 
Jaffre. 

The Elf r bf | i rrwWT> s aid mea- 
sures were being implemented 
to reduce the group's debts, 
which amounted to STTK&Stai 
at the end of last year. He said 
he hoped to realise about 
FFrSbn from the sale of assets 
this year as part of his strategy 
of reducing borrowings at the 
group. 

Elf sounded a positive note 
with respect to its chemicals 
operations. According to the 
company, restructuring mea- 
sures had reduced production 
costs while economic recovery 
in Europe had led to improved 
sales volumes. As a conse- 
quence. Elf said there bad been 
a “noticeable recovery of 
results”, in the first half of the 
year. 

Lex, Page 24 


wow vu irauuifuuuig uao Miur a m -jl t a « 

France may sell CNP 
stake in September 

Rtf RMunl I tnnor rwr rant tntprMt with fh* 


By Richard Lapper 

The French government could 
sell off part of CNP Assur- 
ances, the country's biggest 
life insurance company, as 
early as September. 

Mr Patrice Ract Madoux, 
finance and international 
director, said continued weak- 
ness in thft French equity mar- 
kets might make the part- 
privatisation of CNP more fea- 
sible than that of Assurances 
Generates de France, the large 
composite insurance company 
which is also scheduled to be 
sold. 

The government sold off 
Union des Assurances de Paris, 
its biggest insurer, earlier this 
year. 

Mr Ract Madoux is expecting 
the government to sell a stake 
of between 30 per cent and 35 
per cent of CNP, raising 
between FFr5bn and FFr6bn 
($899m-$lJbn). 

The group hopes to attract 
an overseas In vestor and has 
been targeting potential parties 
in North America and Europe. 

The state would retain a 40.5 


per cent interest, with the 
savings h»nire owning about 10 
per cent and the post office 
about 17.5 per cent 

“If the market is soft we may 
be a test for government We 
are planning to be ready by 
early September," said Mr Ract 

Marfan it 

“Given the state of the mar- 
ket it may be easier to sell a 
medium-sized company. It 
would be more digestible." 

CNP has grown rapidly in 
recent years, increasing its 
sales by 50 per cent in 1993 
alone. 

Mr Ract Madoux said the 
group’s sales through 17,000 
post offices, 6,000 savings bank 
branches and 4,000 tax offings 
had all increased, partly 
because of the effectiveness of 
t raining programmes. 

CNP, which specialises in a 
relatively simple life insurance 
savings product, has a market 
share of about 17 per cent 

The commission payments it 
makes to intermediaries are 
much cmaTiw than those paid 
by France’s composite 
companies. 


Kodak hires 
Scnlley as 
part-time 
adviser 


By Martin Dickson 
in New York 

Mr John Scnlley, the former 
chief executive of Apple Com- 
puter, has been hired as a 
part-time marketing adviser 
by Eastman Kodak, the photo- 
graphic products group m the 
throes of a shake-up. 

Mr Scnlley, who resigned as 
chief .executive of Apple in 
June last year, built the com- 
puter company Into a leading 
global brand. 

He helped do the same for 
PepsiCo, the soft-drink manu- 
facturer, where he was a 
senior exec utiv e before joining 
Apple in 1988. 

Mr Scnlley, who runs his 
own consulting firm in New 
York, win spend about 25 per 
cent of his time on Kodak 
business, building its digital 
imag in g 1 anrf brand imukigring 
strategies. 

Mr Geoige Fisher, the for- 
mer chief executive of Moto- 
rola, the electronics group, 
who took over as Kodak chair- 
man late last year, said he had 
worked closely with Mr Scot 
ley for the past 10 years. 

"I am confident John can 
help Kodak develop a more 
aggressive marketing 
approach,” he said. 

Yesterday’s appointment is 
good news for Mr Scnlley, who 
suffered embarrassing public- 
ity earlier this year when he 
resigned from Spectrum Infor- 
mation Technologies, a wire- 
less communications group, 
after less than four months as 

rfi iiin nfln, nll ug i ii g that he M 

been deceived about account- 
ing problems. 

Mr Fisher is making sweep- 
ing rihang ea at Kodak; which 
has suffered for years from 
lacklustre financial results. He 
is keen to push the company 
aggressively into digital elec- 
tronic imaging, which in the 
past has been overshadowed 
by the poop's traditional sil- 
ver halide photographic tech- 
nology. 

Kodak is still looking for a 
new senior executive to lead 
its digital operations and Is 
said to have been holding 
fa»Ik» with Mr Don Strickland. 
Apple's vice-president of imag- 
ing and a former Kodak 
employee. 


Statoil refinery scheme hit by delay 


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By Karen Fossil to Oslo 

The construction of a 
condensate facility to expand 
the Kaltmdborg refinery in 
Denmark is expected to exceed 
budget by at least DKrlbn 
(5156m) and be delayed by at 

iraaf nnp year, s t at m~i the Nor- 
wegian state oil company and 
owner of the refinery, said 
yesterday. 

The facility is intended to 
expand annual production 
capacity by 1.5m tonnes to 
4-ftp tonnes and allow output 
of light oil products to meet 
stricter environmental stan- 


dards. It is expected to come on 
stream in the fourth quarter of 
1995. The budget for the project 
was DKr2.2bn but this was 
adjusted to DKr2.6bn last 
January. 

“The increases reflect delays 
and deficiencies In the engi- 
neering work that have had a 
knock-on effect in the con- 
struction phase and have cre- 
ated substantial extra work." 
Statoil said. 

The disclosure comes six 
years after a NKrtiAbn (5905m) 
cost over-run on Statoil's 
Mongstad refinery expansion 
project in Norway. 


This exceeded Statoil's 
equity capital at the Hnw by 27 
per cenL 

That budget overshoot forced 
the resignation of Mr Arve 
Johnsen. president and chief 
executive - replaced by Mr 
Harald Notvik, Statoil's cur- 
rent president - and a 
Ear-reaching reorganisation of 
the company. The group had to 
seek a capital injection. 

The main contractor is 
US-based Ralph M. .Parsons, 
while Exxon is the technical 
adviser to the project 

“These cost overruns under- 
mine the profitability of the 


project compared with original 
plans. However, the project has 
come so far that there is no 
question of halting it. To 
ensure an acceptable comple- 
tion of the project, we have 
made suhs fainti.ii organisation 
changes." said Mr Narvik. 

Statoil estimates the net rate 
of return on the project at 6 
per cent, or 10 per cent before 
tax. 

In September, the board is to 
be presented with findings of 
an Internal audit of the project 
which is under way. A govern- 
ment inquiry into the affair 
may be called for. 


Repsol’s promising new chapter 

Enagas acquisition will lift Spanish energy group, writes Tom Burns 

M r Oscar Fanjul, the — — — — — would fall prey to foreign com 

publicity-shy econo- 1982 1993 i 1 ** W t*®* 9^ panies. Gas Madrid’s mergci 

mist who is chair- .I?* 3 1994 with Catalano de Gas. foi 


M r Oscar Fanjul, the 
publicity-shy econo- 
mist who is chair- 
man of Repsol, Spain's partly- 
privatised energy and chemi- 
cals group, can afford a hit of 
chutzpah at the corporation's 
annual meeting in Madrid 
today. 

A week ago Mr Fanjul 
clinched an important deal, 
opening a promising whaprw in 
Repsdl’s history. 

Gas Natural, which Is 45 per 
cent owned by Repsol, bought 
Enagas, the state-owned 
importer of natural gas and 
supplier to leading industries, 
to become the virtual monop- 
oly importer and supplier of 
gag in the fast-growing domes- 
tic market 

Repsol, whose shares are 
traded in London, New York, 
Tokyo and Madrid, becomes a 
hybrid among energy corpora- 
tions through ^ addition of a 
greatly increased gas business 
to Its profitable oil exploration, 
production, refining and mar- 
keting activities. 

“Repsol is now quite unlike 
all the other energy groups," 
says Mr Luis Prota, an analyst 
at Madrid securities house AB 
Asesores. "No other oil com- 
pany has this sort of big gas 
business, intergrating supply 
and sales." 

The Pta51-2hn ($379m) acqui- 
sition Of 91 per eant of Rnagas 
lifts Gas Natural's quota of the 
domestic gas market from 41 
per cent to just over 90 per 
cent 

Gas Natural has become the 
third-biggest gas company in 
Eurqpe in terms of market cap- 


FINANCIAL TOtES 



1992 

1993 (1st Qtrl 

1993 

Pesetas (m) 

(1st Qtr) 
1994 

Operating income 

122.19 

is&n7 

39.39 

46.47 

Net income 

71.91 

89.11 

23^3 

26_26 

Cash flow after taxes 

154.06 

192.44 

45.96 

57.10 

Nat incoma per share" 

239.72 

267.05 

78.43 

87^1 

TMhn 



Sowca. emptm Apra 


itallsation and the fourth In 
terms of clients. 

Gas Natural bought Enagas 
well below the PtaSObn- 
PtaLWbn price range suggested 
when the takeover negotia- 
tions began nine m onths ago. 

This pleased the markets, as 
did the terms of the deal. Rep- 
sol, together with La Caixa. the 
large Catalan savings bank 
that has a 25 per newt stake in 
Gas Natural, avoided the 
investment burden of a gas 
pipeline being built by Enagas 
to link Spain to Algeria's gas 
fields via Morocco. 

The pipeline, due to be oper- 
ational by the end of 1996, will 
now be built by a separate 
company, called Sagane, that 
will remain in public owner- 
ship. 

Gas Natural has an option, 
but not an obligation as was 
originally intended, to buy 
Sagane from the government 
in 2000 for Pta50bn, a price that 
represents a fraction of the 
cost of the state’s investment 
in building the fixed gas link. 

The pipeline investment, and 
the original purchase figures, 
had prompted market fears 
that an Rnag an failmi m»r would 
drag down Gas Natural's prof- 
itability as well as Repsol’s. 


But the energy corporation 
struck what Mr Juan Carlos 
Calvo of Madrid brokers FG 
called “a very positive deal for 
itself’. 

Repsol officials say the take- 
over has given the energy cor- 
poration a new lease oflife at a 
time when the domestic oil 
market, 60 per cent controlled 
by Repsol. has become increas- 
ingly mature. 


M r Faujul made the 
gas business a prior- 
ity for the corpora- 
tion in 1985, shortly after he 
became chairman, and he now 
calls the strategy “one of those 
correct decisions of which we 
should feel proud". 

Repsol has spent nearly 10 
years working towards the 
Enagas acquisition. In the late 
1980s it bought into regional 
gas distributors to build up 
Gas Madrid which it owned 
outright. In 1991 it merged Gas 
Madrid with the Barcelona- 
based Catalans de Gas, in 
which it had a 15 per cent 
stake, to create the nationwide 
Gas Natural company. 

The acquisitions had full 
government support because 
there was concern that the 
fractured domestic gas market 


would fall prey to foreign com- 
panies. Gas Madrid's merger 
with Catalans dc Cas. for 
example, pre-empted a bid for 
the Barcelona company by 
British Gas. 

Over the past five years Rep- 
sol's gas business has raised its 
contribution to group operat- 
ing Income to 25 per cent from 
9 per cent. The weighting of 
gas within Repsol will increase 
because of the Enagas acquisi- 
tion. but it was set to rise even 
without the takeover because 
of the new momentum the 
Spanish government has given 
to natural gas. 

Under the national energy 
plan, which gave the go-ahead 
for the Algerian pipeline to tilt 
domestic gas supply, natural 
gas will have doubled Its con- 
tribution to national energy 
consumption from the current 
6 per cent to at least 12 per 
cent by 2000, 

Repsol could not have timed 
the expansion of its gas busi- 
ness better: the turnover of 
Gas Natural-Enagas is likely to 
be Pta250bn this year and Is 
forecast to be more than 
PtaSOObn by 2004. 

Analysts believe Repsol's 
after-tax profit could increase 
annually by as much as 15 per 
cent over the next three years. 

This is the sort of message 
Mr Fanjul will give to share- 
holders today, and the timing 
Is favourable. Repsol is expec- 
ted to make a Pta200bn- 
Pta300bn global share offer 
later this year that will reduce 
the government’s stake in the 
energy group to about 20 per 
cent from 41 per cent 





4 



ilk 






& 

% 


It’s rise and shine for your money 
at your newsagent. £1.70. 


INVESTORS 
CHRONIC 


THE CITY INSIDE OUT 






COMMODITIES AND BOND 


WKBK IN THE MARKETS 


Bulls back 
off at metal 
exchange 


London's commodity markets 
appeared to be heading for an 
up-beat end to the week yester- 
day m an rin g with, aluminium, 
coffee and cocoa prices regis- 
tering significant gains. But 
the mood nhang ud aft® lunch 
as the bulls went into retreat. 

Aluminium's rise, which 
took the three months delivery 
position at the London Metal 
T frghang p to a afl- mrarrtft high 
of $1,505 a tonne, was encour- 
aged by news of a big foil in 
exchange warehouse stocks - 
the third in a row - which, 
traders saw as confirmation 
that the voluntary output 
reductions announced follow- 
ing the greement readied by 
leading producing countries in 


(As at Thursday's dasa) 


Ahrmtoton 

-11675 

to Z8S4JS0 

NunUun o(oy 

-MO 

toaojeo 

Copper 

-473 

tosssjaa 

lead 

-300 

So 860660 

Mew 

-30 

to 138072 

2he 

*4J00 

to 1,197.125 

TV? 

+785 

*3 30806 


January were beginning to 
bite. 

As the metal topped the 
$1,500 mark, however, concerns 
were raised about the possibil- 
ity that more remunerative 
prices might encourage compa- 
nies to reverse some of the 
cuts. 

“An awful lot of producers 
who have cut back must now 
be wondering if they should 
think about restarting same of 
those pot-lines,” Mr Anthony 
Bird, of industry specialists 
Anthony Bird and Associates, 
told the Reuters news agency. 

That helped to undermine 
sentiment and by the dose the 
three months price was back to 
$1,49050 a tonne, up just $3 on 
the day and $20 cm. the week. 

The copper market had 
already begun drawing in its 
horns after its spike on Thurs- 
day to a fresh 21-month high of 
$2^07 a tonne for three months 
delivery. 

Renewed profit-taking 


trimmed more off the gains 
after an early rally yesterday 
and the three months price 
closed at $3,467.50 a tonne, 
down $16 on the day but still 
$20 up on balance. The selling 
was influenced by a smaller 
than expected LME stocks fall, 
traders said, and by improved 
availability of metal for imme- 
diate delivery. 

“Copper win get back above 
$2,500 and aluminium above 
$1^00, once the reactions are 
out of the way," one trader told 
Reuters, however. “When that 
happens we will see the others 
being bought also." 

The [iondon Commodity 
Exchange robusta 
a see-sawing week near its 
lows after a strong early rise 
yesterday was surrendered 
during the afternoon. 

The rally, which lifted the 
September fixtures price by $86 
to $2,325 a tonne, had been 
prompted by a warning of a 
possible frost in Brazilian 
growing areas at the weekend. 
But traders Quickly came to 
the conclusion that the rise 
had been overdone, if not 
unjustified, and the price sub- 
sided to end at $2£55 a tonne, 
up $15 on the day but $79 down 
an the week. 

"It’s been a tale of rumour 
and counter-rumour today,” a 
dealer told Reuters. “There 
was a period of shortcavering 
earlier, then when the fore- 
casts were seen as not so bad 
there was light general sell- 
ings” 

“ft seems it's going to be cold 
[in Brazil] and there’s a possi- 
bility of frost,” said another, 
“but it could be a case of buy 
the rumour, sell the confirma- 
tion.” 

Cocoa futures followed a sim- 
ilar p» Own and for the aftnflar 

reasons, the September LCE 
price bounced to £991 a tonne 
before closing £11 down at 
£965. That took the foil on the 
week to £7L 

At London’s International 
Petroleum Exchange Brent 
blend crude oil futures traded 
uncertainly in its new, higher 
range, ending the week a few 
cents lower. But traders 
remained optimistic that fun- 
damentals remained positive 
and that the upward trend was 

tntairt 

Richard M ooney 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices from Amrigwnetad Metal TracaigJ 
■ A LUMP 8UM. 9ft7 PURfyy » per tonnN 


Precious Metals continued 

■ GOLD COMEX {100 Tray BatS/Bcycaj 


GRAINS AND OIL SEEDS 

■ WHEAT LCEftpwwmd 


SOFTS 


MEAT AND LIVESTOCK 

■ UWCOTTlgCMCflOJMtofcN**** 


M M* 


WEEKLY PRICE CHANGES 



Latest 

prices 

Change 
on week 

Year 

■80 

1994 

Mgh Low 

Gold per tray ce. 

$391.70 

+aso 

S37IL45 

$39150 

$369 JO 

Shgr per hoy az 

3S2J0p 

-110 

302JCp 

384 JOp 

335J0p 

AtunMum 99.794 (cash) 

SI 402.0 

+205 

$120150 

$146200 

S1 107 JO 

Copper Grade A {cash) 

$2449 J) 

+11J 

£1270.0 

$2467 JO. 

S1731J0 

Lead {cash) 

$5416 

+05 

$261J 

SS46J 

S426.0 

MckM (cash) 

S8355.0 

-900 

S5365J) 

$6490 

SS210J 

Zinc SHG (cash) 

areas 

rlD 

$8275 

$1014 

$9002 

Tin (cash) 

$54654) 

-1250 

$49710 

$66500 

$47300 

Cocoa Futum Sep 

£966 

-70 

£728 

£1036 

P8S) 

Conw Future* Sep 

S2256 

-79 

$323 

$2334 

$1175 

Sugw (LDP Raw) 

$306.7 

-17 

$267^0 

$3094 

$2522 

Barley Futures Nov 

£10025 

• 

£10110 

£10025 

£92.65 

Wheat Futures Nov 

£1Q2JO 

♦020 

C134S0 

£117.60 

£9720 

Cotton Outlook A Index 

63.55c 

-100 

57J0C 

87.10c 

62.46c 

Wool (84s Super) 

422p 

- 

362p 

428P 

342p 

OB (Brent Bend) 

S17J8X 

+020 

S17J96 

$1728 

$1118 


FV »nn« irtras oUms+M statsd. p Pmoa/Ho. c Cam fa. x Aag 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red De/e 

Coupon Da 


Price c ha nge 


Wtak Month 
Yield ago ago 


AuetnBa 

9X00 

09/04 

910600 

-0X80 

921 

923 

171 

Belgium 

7260 

04»4 

952500 

+0X50 

726 

111 

7.78 

Canada* 

1600 

caw 

81 2000 

-0250 

141 

119 

155 

Danmark 

7X00 

12W 

91X700 

+0X20 

118 

136 

7J5 

Franco ETON 

8X00 

05/98 

1032300 

+1170 

7.03 

7.03 

146 

OAT 

1600 

04/04 

611700 

+1180 

724 

7.78 

7.18 

Germany Treuhand 

1750 

05W 

97.7200 

-1570 

7X6 

7.14 

183 


1500 

01/04 

814000 

-1860 11451- 

1177 

172 

Japan No 118 

4200 

06496 

1042000 

+1480 

164 

173 

KM 

N0 184 

4.100 

12/03 

882190 

+0290 

428 

4*41 

173 

Netherlands 

1750 

OMV 

617000 

-0220 

7.12 

72* 

628 

Spain 

10500 

10/03 

910600 

-1400 

1024 

1023 

171 

UK GOT 

1000 

06/98 

90-1* 

-10/32 

133 


110 


1750 

11W 

87-04 

-17/33 

824 

164 

138 


9X00 

10/08 

102-24 

-17/82 

166 

163 

149 

US Tkeasuy * 

7250 

05/04 

100-11 

-26/33 

720 

7.12 

7.17 


1250 

asm 

85-05 

-35/32 

7.91 

7*43 

722 

ECU french Govt) 

1000 

04/04 

872800 

+1710 

729 

115 

723 


Lento deatail, *New YWtrttf-d* 
t Grass OncfcOTg wtNnfeflng m w tie par cant pay** by 
Mesa US. UK In aandg, ottaa In ‘ 


YMdK Local martait standee. 

4 

Sauce; MUS taamttnri 


ECONOMIC DIARY - FORWARD EVENTS 


TOMORROW: Ukrainian 

presidential election. Summit 
of CFA franc zone heads of 
state in Libreville. 

MONDAY: GB cinema exhibi- 
tors (first quarter). US existing 
home sales (May). European 
Union research council meets 
In Luxembourg. Nigerian con- 
stitutional conference begins 
in Abuja. Offer begins for pri- 
vatisation of INA, the Italian 
state-owned insurer. US and 
Canadian trade and agriculture 
ministers meet in Ch i ca go to 
resolve their form-trade dis- 
pute. Rail Maritime and Trans- 
port workers union conference 
in Liverpool (until July 1 ). Offi- 
cial launch of Ch annel Tunnel 
railfreight services. Prelimi- 
nary figures from Seeboard 
and Norweb. 

TUESDAY: Major British bank- 
ing groups’ mortgage landing 
(May). UK Treasury releases 
revised economic forecasts. US 
new home sales (May); con- 
sumer confidence (June). 
North-South Korea pre-summit 
talks, Hungarian parliament 
scheduled to convene for first 
time since Socialists secured 
absolute majority in May 
elections. British Coal pub- 


lishes annual renort. 
WEDNESDAYVWelsh eco- 
nomic treads (1994). US final 
GDP (first quarter); factory 
orders (May): personal income/ 
spending (May) and factory 
orders (May). Japan’s indus- 
trial production figures (May). 
Hong Kong’s l e gis l a t i v e coun- 
cil debates democratic reform 
bfiL KMT signalmen expected 
to stage one-day strike. Henley 
Royal Regatta begins. 
THURSDAY: New vehicle reg- 
istrations (May). Energy trends 
(June). Economic trends 
(June). Monthly digest of sta- 
tistics (June). Family expendi- 
ture survey 1 953. New Zealand 
budget to be presented to par- 
liament British parliamentary 
by-election in the seat of Monk- 
lands East 

FRIDAY: US leading indicators 
(May); NAPM index (June); 
construction spending (May). 
Germany takes over the presi- 
dency of the European Union. 
Brazil to introduce new cur- 
rency. Spring-summer men’s 
fashion shows start in Paris 
(until July 4). Russia’s oil 
export quotas and licences for 
extracting companies due to be 
scrapped. 


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Options Software 

BWnSr* ^ M *~f*** ta VaSMU—a * Strategy Charts 


FmJW-TZ) 976834 




Caafa 

3 rathe 

Ctcaa 

14812-22 

1490-1 

Previous 

1468-9 

1487-6 


1470 

1507/1487 

AMOmcttZ 

1470-1 

14972-15 

Karta dose 


1487-8 

Open tot 

278J43 


Tout dolly hancNor 

63X90 


■ JUMNRJH ALLOY ($ per tomel 

Ctoflfl 

1486-65 

1470-80 

Previous 

1450-6 

1468-70 


1460 

1480/1475 

AM Official 

14606 

1477-60 

Kerb Ctoaa 


146675 

Open tot 

2,778 


Total defy tunover 

796 


■ LEAD ft per tome) 


Ctoaa 

543-4 

560-1 

Previous 

638-9 

S6S2-6 

HtfAw 


584/553 

m Official 

5422-3 

&S8J-9 

Kerb doaa 


562-3 

Open InL 

37X91 


Total defy turnover 

4J87 


■ MCKB. ft per tonne) 


Ctoaa 

8350-80 

6445-60 

Previous 

6386-405 

648660 

WgMow 


6630/6420 

AM Official 

6336-40 

6430-5 

Kerb ctoaa 


6460-60 

Open toL 

58X95 


Total defy turnover 

1524 


■ -HN ft per tonne) 




5460-70 

• 6641-5 

Previous 

5668-73 

564620 

Hah/tow 


56605641 

AM Official 

5800-10 

5530-5 

Kerb done 


5580-60 

Open tot 

17,111 


Total daffy turnover 

7X10 


■ 2MC,epacM Mgh grade ft per tonne) 

Ctoaa 

983-4 

1007-6 

Previous 

9716602 

10042-5 

Htfifaw 


1006/10012 

AMOflcU 

960-02 

100682 

Kerb done 


1005-6 

Open tot 

106226 


Total daly turnover 

13J99 


■ COPPER, paste A ft par toons) 



2441615 

2467-8 

Previous 

2467-6 

2483-4 

HJfltVtow 

2442/2441 

24930463 

AM Official 

2441-2 

2460-1 

Kerb ctoaa 


2*70-1 

Open tot 

221199 


Total daBy turnover 

64.235 


■ UC AM Official » t Mm 12483 

LHC Ctoatog Eft rat* 12460 


Spot125T7 3 nthKl2488 6 nttal 2483 9 Bfla:12<73 

■ HK3H GRADE COtoPER (COHSQ 


Day% 


OPSB 

Ctoaa dreoga 

M* law 

IN Vof 

Jot 11120 -120 

11110 11120 

233 as 

m inre -uo 

11170 11120 15X2* mo 

Aug 112X5 -125 

- 

704 HJ 

Sap 112X5 -1.15 

113X0 111X0 30.406 3834 

Oct 11120 -1X5 111J0 11120 

Z7B 

Her 111X6 -1X0 

111J0 111X0 

236 


ML 

31$ 


prtoe aflat* NOT tow 

Jm 391.1 *1 A 3920 3817 

Jut 391.5 +1* 

Mo 3922 +1A 38*4 3B05 85.161 1W 

ant 3BSJ +14 397.5 3S36 «78 Z7Z 

OK mi +1 A <OJ 3919 ZLW 2JZ2 

Fffft 4027 +1J 4040 4007 7/589 LOT 

TaU W08 Kpn 

■ WATNUMWYMBtpO Troy ozj Vtror 


HUS *025 10200 10200 
tiff an *020 10U0 10190 
KKJO *025 10470 1043S 
10635 4015 10625 10600 
10606 *OT5 
11006 


M 

67 

457 

2.161 

1** 


400 


TNri 


M 


Sato 

prfca i 

mm 

HOT 

9m 

lew tot M 



M 

•13 

971 

938 11,484 «» 

76 

Sffi 

668 

•to 

961 

985 U?7 l» 

15 

Ok 

983 

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WH7 

m vm 


Hw- 

1 «& 

•a 

«0» 

m ht» m 


■toy 

tout 

-13 

reri 

1008 1ft8» 71 

m 

JN 

Tatoi 

10Z7 

-13 

«H7 

tm \384 n 
UKA79 


m m 


Oak 


-12 407a 39911 IJtn 2305 

-13 4105 4045 1*879 2JO» 

-12 4120 4160 170 16 

■13 4129 4120 1.179 37 

TM TSflB 4)910 

B PA 1 ■ jBMI NYWEX ClOQ Thay m; Sftroy 


403J 

40TJ 

4103 

4120 


*9 

BK 



138X5 

•050 139X0 ttpm 

34 

5 

9m 

138X5 

- 139X0 138X0 

3J1D 

58 

Dec 

13115 

- 13820 13175 

831 

- 

Her 

Tetri 

139.15 

- - - 

1 

4J7I 

K 


■ BMATCaTgjOOOOTtrtrcctnKffiObbuMi* 

-1H 319/6 »«& 610*5 233*0 

-IB 324/0 322/0 70O00 22005 

-Off VS/0 332^*117,106 35305 

+W 33SM SSSn 26120 2 2*9 

-no 33V* saon sao iso 

+tM 324/0 220/0 2220 480 

Ttof »V90 94096 

m wagCBTCJMton9ft:c*«8/B6lbbu<wO 


■ COCOA C3CS no HWWiSftawwO 


VI UM • m • • m 
saon -0.100 aim nw • m 
I 6 J» 44 W VON 8 M* BIN WB 
auoo *4i90 mm tain tun tm 
turn +v* mm ma* «M us 
Mr 74MB *4180 MSB 70 2» UN 83 

JOT cron *0.575 MS 67.675 2786 41$ 

9M «389 

c uw rtoatcmXAOOQte 0*msaj r 


a» 

3284 

334/2 

338/2 

3300 

32M 


Ok 

Mir 

mi 

M 


tm 

*W 

1*0 

1270 

874 

86 

JM 

1302 

-14 

13* 

1207 

981915 

CJ36 

urn 

1341 

•IS 

ISA 

1H7 

nj* 

M 

ON 

7*1 

a 

7405 

1998 

7jt» 

887 

Sto 

1401 

-w 

to* 

uot 

1853 

138 

m 

1423 

-T& 

1830 

to* 

UN 

■. ■ 

m 


am «47oo 47.ua «um m 310 
46600 *4460 4&m 46606 MM 1JM 
amcnttXI MB LW 


MQ Vim IMS 


■ CQOOatOCCI O D ftW lflBiB 


4400 *4600 4t« tt W 



JM 2SW 


■ tBLVER COMEX flop TK>y azj Caott/ttpy cgj ™ 


Jot 

5897 

+12 

. 

. 

JN 

5400 

+12 

5482 

5342 <32* 23J83 

MB 

SOI 

+12 

- 

14 1* 

8*8 

544X 

+12 

EB42 

S392 51X60 117S 

Dot 

sax 

+12 

5812 

5410 11774 M90 

-too 

5642 

+12 

- 

32 

toad 




rr> BT» *1974 

ENERGY 




■ CRUDE OX. NYMBC *42X00 US grift. S/banafl 


20/0 

253/a 

25738 


TOO* 


■MS ism 200292695 79,610 
*0 tl 2SUB 2*0/2 238.405 81 410 
*20 200 2*2(2 574JJ75T67635 

+22 253/4 250/2 9B665 16600 

40 258/0 25Ba ns» 025 

*20 2800 2 B/2 16830 5,480 

1X238*334^15 


OMr 


MOW 


Mm 

trn. rift 

JN 

4801 NUE 4U8B H.MS 

u> 

1* 

1998-lfl 

W17-89 

M| 

hma +OJ86 atom aareo 

4JOT 

an 


IOT 

«J» 4<H 4M* 47,179 

m 

MB 

Ml 

lift 

OTr 

*87* «&n cm 

41 

4 


■ COmtLCeiMonnM 


NN MR *6X71 «m 


*1,318 ijm “ 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(PitcCT auppOud by N M BBtfacMM 



IOT 

Day* 


Opsa 



price 


tm 

taw tot 

Vri 

Asa 

1124 

■118 

1148 

Tfi-15 91X09 51*87 

s*p 

1877 

-0.15 

11S3 

1170 B2S9 35X99 

ON 

1157 

-110 

1165 

1148 33X09 11184 

tow 

UXB 

-an 

1147 

liD 7H Bm 

12*4 

Dec 

1625 

-114 

18X8 

1119 33503 

7.101 

JM 

1117 

■115 

1117 

1117 177*0 

2180 

Total 




mfintnm 

■ CRUDE 01 FEft/barreft 




LattN 

ttojto 


Opm 



Prim 

dreage 

HOT 

law tot 

M 

Aag 

17^0 

+104 

17.44 

17X6 71778 21.HX 

sap 

1720 

- 

1725 

17X9 3TJ18 

9.156 

ON 

17.17 

+109 

17.17 

1129 9X1< 

879 

Mar 

17.10 

+007 

17.10 

1194 1479 

480 

Use 

17X5 

+106 

17X5 

«95 11X33 

1-206 

Jm 

17X0 

•101 

1720 

m* 2X03 

153 

Tetri 




148JS7 

3%9ffi 

■ KEATB40 OLIVMGt (42X00 08 Bril; e/USgrito) 


imet 

naya 


Opsa 



price 

ctam 

HOT 

law tot 

tot 

JM 

5023 

-143 

5170 

50LM 23.411} 

9X33 

A* 

5025 

■147 

5120 

5140 30X64 15237 

SOT 

51X0 

-142 

5125 

51X0 14X57 


ON 

51* 

-132 

52.45 

52X0 11JBB 

1.466 

Nov 

53.15 

-0X2 

53.45 

5220 7 JM 

3« 

nac 

54X0 

•127 

5420 

5420 12X48 

L«6 

Totri 




a,* 

HW 

■ GAS 01 PE fttaeual 




Sett 

0a»% 


sm 



price 

Naogs 

HOT 

law tot 

tori 

Jri 

15575 

+150 

15125 

15550 29X01 

5.175 

mb 

15825 

+175 

18020 15820 15X19 

0019 

•■9 

180X0 

+150 16120 

18020 LC 

700 

ON 

16275 

+150 164.75 U275 1128 

235 

Nm 

18475 

+150 

18620 185.75 5X89 

37 

Sk 

16820 

+150 

1U2Q 

1BBX5 14.181 

37« 

Tstri 




ttj» 

UN 

■ NATURAL GAS NAB (10X00 mSh; SOT 

OTtoJ 


Sm 160X0 +056 tOOXO 10020 186 4 

to* more ■ ■ » ■ 

Jm Wire ... 28 - 

Hr M3J00 35 

■toy 104X0 - - - 1 - 

St 821 « 

■ SOncABEANS C8T ftooou tm caotoffiOb toatreQ 

JN 

687/4 

+241 

66 OH 

664/4131775 *8,185 

xap 

863/3 

+U* 

KW 

69001142* 30X25 

9tp 

asm 


8SUD 

647/0 53X71 

1M6 


B4M 

+40 

8420 

634/4 380X1 Q 140X20 

tom. 

MA 

* 4 n 

6470 

641/4 30291 


Mf 

SOS 

+47 

8830 

800 1*2* 

1066 

TOTl 




7XXtt*4B2*a 

■ SOYABEAN OtL CBT (BOXOCN)*: Osncrito* 

JN 

2U3 

•au 

27X7 

2820 12X42 

4.1M 

Bag 

2ELS3 

•117 

2727 

*73 112* 

1588 

9m 

2178 

-an 

2197 

2168 12X83 

1,158 

ON 

2822 

41X7 

2183 

2141 8X0 

1.139 

0K 

2129 

■0X4 

2S« 

26.15 2M18 

4.447 


2119 

4108 

2125 

2108 2X48 

173 

TM 




82X82 

WXH 

■ SOYABEAN BOTAL CBT (TOO KK SOTl) 


JN 

1941 

+Z3 

T94J 

1912 14X35 

8X» 

toffi 

1943 

*10 

194.4 

102 itxzz 

4.485 

SM 

mx 

+14 

1B4X 

191X 14J60 

1J17 

BN 

191X 

•2.4 

1922 

mi 1880 

646 

Dec 

308 

+22 

ixu 

mo 19.171 

4X32 

jm 

mo 

+12 

nu 

1817 1X38 

76 

NBri 




80JM 

W8M 

■ POTATOES LCE OE/tarm) 



Mm 

900 

. 

. 

. . 

. 

Mr 

1010 

- 

■ 

• 

• 

Apr 

nu 

+4J 

1642 

1600 988 

m 

OTy 

1812 

- 

• 

. 

. 

Jm 

1575 

• 

- 

• 

. 

INN 




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111 

am 

MMT WffiFCQ LCE ftKMnriaK pdnt) 


jm 

T323 

4< 

13* 

13* 4Z2 

1 

Jri 

1288 

4 

1290 

1286 Sto 

7 

Mx 

MB 

+1 

. 

• 432 


ON 

1351 

*11 

1348 

1348 486 

1 

Jm 

UM 

• 

1380 

1360 232 

t 

Mr 

1360 

- 

072 

1372 100 

1 

urn 




2J*8 

n 


CtoM 

%*» 




OT 

sm 

1M 





JN 

2250 

* 7 

S» 

2710 11*2 877 

tm 

2256 

+16 

3326 

2710 1X771 %57* 

9m 

2253 

+* 

ft* 

220s ij«i urn 

Jm 

2242 

+27 

2300 

2*0 ftJM ua> 

Met 

7225 

+a 

22M 

2M1 1728 Ml 

My 

22* 

+42 

■ 

- 127 

- - • MM MU 

B COfTES “C C9CS ft7 JOaffie; oensaAbri 


<4 

RIB 


LONDON TRADED OPTIONS 

Ip0w%«0 tm — OMB— —ns — 


JM 

*4* 

BK 

Mr 

JM 

Tetot 

aeon 

125X5 - 130X0 mXB 1.161 481 

12116 -on 131X6 12MB 2M« 1MB 

120X0 +G36 1*a0 177X5 HOT 1AM 

12110 +i40 ma mao 7xti m 

taoxB «*n mxo mn trto » 

13000 +2X0 • MB * 

MOM MM 

ttOCO}(U8oer4a/p««* 

JUSt 23 


ROT 

OT* 

f * MMM OTri 


12047 

nfca 

iSdamreft — 

1*121 

mxo 

a No7 1 

ma au 

it more autoAN tee ****** 

JN 

0X3 

*0X1 11X4 12X3 

3J)« 383 

M 

1140 

■084 - ■ 

\m ■ 

Jm 

11X3 

re ■ * re 


Hr 

11X8 

-aia 

SB - 

TPM 



MP M 

B WNRE SUGAR LCE ft/teW* 



380X0 

•3X0 388X0 80X0 11XH 4J» 

ON 

325X0 

-OW 32U0 32110 

M06 i.m 

BM 

31150 

-020 32000 311* 

89* 7 

Bar 

318X8 

+aw 311* 31728 

IBM 10 

•OT 

31 BSD 

+0* 

217 

AM 

31140 

+0X9 

3* 

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ton ins 


M4790U46 

was 

14» 

isos — 


Nov Aus No* 

so n n 

M 46 61 

74 M n 


s 

■ vrt 


MOO. 

6460. 


re 

M 

LC8 M 


m 00004 LCE 
t» 


tooo. 


WHO. 


Me No«r mis No* 
107 136 36 M 

110 00 118 
m m u» 
Mp *m sap 
1M >37 ire SM 
103 art 206 206 
145 201 240 298 

M Sip 41 Mp 
82 40 74 

H 66 66 

88 169 160 


T»** 




71 

61 


■ 8M8NT CMUMIPC Mug Mp AuQ Stp 


OJK 

-*fr 

-:V 


1660. 


1700 

1760 


- tt 40 
Bl M 60 
68 80 


LONDON SPOT MAW<ETS 

■ CMUOKOa. TOB tsar bMlBMl 


*Oi» 


■ auoAH nr cscsn 12 . 0000 *; QtotoibN 

JN 13.14 *606 1229 Till 11397 I6U 

on an *am tU8 iw itjBiRoa 

Mr tun *003 1162 1161 28686 L8*4 

BM 1162 *004 1160 1160 4622 2» 

M 1V77 *084 lire lire 1636 96 

ON lire *001 lire 1179 614 46 

m mmu 

n COTTON NYCS ffnOOOBK OKK8BN 


7141 *034 7&00 7X10 0306 MB 

7644 *036 7860 7SJQ OM6 UW 

7614 *014 7164 7610 29.U0 VP 

7607 *022 768H 76U (P* 573 

7665 *OJO 7760 7BJ6 US2 172 

77 JO *U0 77 JO 77.90 934 361 


■ omwoe juK»Nvc«(iBjoaoK 


6675 


Gold (Tray ok) 

$ price 

CeqMv. 


Ctoaa 

361-50-391 XO 


M 

Opanfaig 

39060-391X0 


Mp 

ON 

Momtng Ox 

39a 70 

252X30 

Aftamoan Ac 

389X0 

253X84 

tow 

Day's High 

302X0-382X0 


itoc 

Day's Low 

388X0369X0 


Jm 

TNri 

Fnriaua ctoaa 

39020390X0 



2690 *0027 2.10D 2600 1.141 22JW 
2125 *0017 2125 2HS 18J13 67B 
2156 *0612 219 2143 11^6 16*0 
2230 *0614 223S 2225 10756 904 

2330*0012 2333 2325 <0853 380 
2333 *0011 2340 2330 HD« 588 

112611 srjw 


Laoo LNn Moth Gold Landtag R*tM (Vs USS) 


1 montfi 




■ UNLEADB) 0A80LPE 
W>BWJ»g9M..C«lpB) 


2 months — . 

5 monttis _ 
88vor Rx 

$x* 

3 months 

6 months 
lyasr 
QoM Coins 
Krugerrand 


.11 12 months 4X1 


UM 

ptoTa 


Opaa 


.16 



Print 


NOT 

Law IN 

tori 

pftray nz. 

UScts equlv. 

JN 

54X5 

-a** 

5460 

SUS 21487 HB13 

349X0 

54086 

AM 

54X5 

-044 

54* 

Sin 35X34 TS248 

3S3X0 

546.60 

tm 

54X0 

■031 

54.40 

54X5 122* 

5A85 

35120 

562X0 

ON 

5280 

■021 

52* 

5250 1727 

813 

370X0 

570X0 

Has 

5125 

. 


- <771 

342 

S price 

Eaquhr. 

Ok 

5575 

■o« 

SB* 

5575 3J 4* 

80 

396-399 

250259 

TNri 




BftB 

38ft* 


Now Sovereign 


40280-405l3S 

02-95 


SB-62 


hi gsnaot ths psppor msrhsis v*sm rstfMr sfour 
Ms *mfc ki as sbs i os of Osah buying at 
tansBRi poNeo ns . Ths pries at «riM» popper 
dscOosif wrgl n Wy to about U862.77S-2J00 a 
Hootl ot for AogwKDsesnbar sHpoont tan 
origin. Spotwrtto popper oonanamM apram- 
lum of son US$150 a toms, which was 
nptorir paid tor mto lots. Btodt p*pp*t 
paoss warn istosr 8t0s pnm ftxxn ipoducsr 
oHorings aad ramainscl My s teady. Ham too 
otiWw iota wasa wu*fl on toe spot maftac at 
aOoot US$1,700 a Una maMy lor the fair 


-160 8690 8660 U26 16*6 

-146 9165 BOW tU61 l» 

•230 -126 9430 OU0 2JB8 6B 

9560 -1.9 97J3 90J9 SM 6. 9B 

9760 .160 08JQ 9940 MB •* 

yarn mm 


VOLUME DATA 

Opot beaiwt and imhm das ahawn tor 
eonmen boded on OOkWX. NYMCC CBT. 
NYCe. CMC. C8CE «d ft CM* Of an OH 
<Ny tna w atoa. . 

-T- - i ' _ - 


Dubs/ 

$1109-1 Mk) 

+0106 

Brent Btond (ctotoft 

*720-724 

«oxr 

Brea Btond 4 N 4 B 

*724-726 

+0.16 

W.TJL ppm etQ 

HUM* 

+113 

a Oft lOTOOOOTt NWSpNiOT OTMmy CF OTml 

PlNttaa GMOfeto ' 

M94-M8 


Gee 08 

$108-188 

+ 1.0 

Hmry ItoNQ* 

jmaa 

♦02 

NBMa 

JN FtoN 

fau.iu 

+ 1.0 

+ 1.0 


■ OTHER ... 



OBMftArMVflM 

M«r toar toy os# • 

. *891.79 

♦ 1.00 

SaoxRto 

+3X0 

(OTtocm bmt oc) 

$104X0 

- 1.10 

rCamm ftar Way o*J 

. sm* 


OopaarinpradJ 
Laadft* pno) 

117Xc 

ss.no 


Ml (Oat* Lumpu* 

14L8BH 

-CM 

UnMawVotW 

WJOb 

-100 

2 m ms Prim vq 

Utoo. 


WtoftssNoWf 

1X0X0P 

•2X6* 

amp OT* wNgbOH 

m.74p 

■T.lT 

POTCK+wNgW 

7171P 

+194* 

imOviotM 

•80170 

*7X0 

Lot Oat au 0 w (wta) 

•361.00 

+820 

Tm 1 Ly*» eeport 

£311.00 

•100 

Mm, ■ to 

£10521 


MNs (US No3 VtoNoreO 

$143.0 


VPriat $JB DOT Nodft 

IMM 



• -wri 


j** • 


>n 

■M 


m 

v.JI 

-m 

•41 

.--6 

- 4 


INDICES 

■ mill— Hsu 1W9Q1-10U 


jmm JuoM 

19886- 20022 18466 

CW M toraa(BOTa;4^C8-1001 


18746 


83061 


•toB morttoago year age 
23067 22961 206.11 


MN(Mf 7868P 

nmwfeiT iuhp 

fm*Ma*t*t*>*±* znjxm *068 

grate- -m-'& 

OopraPMR 84066 

Soyabaano flS) . C178JW -16 

OottOB OuBook A toctoc 8366Q -060 

Wtoottopa (64a 9upa0 422p 

C par tonne untws othanriM aatod. p psnoa/kg. c 
oantarih. r ttoggtap. m MNwtton osntoHg. q teg. 
t OcbOso e Jm/JUL w JuL v London PnatoaL $ 
GIF notMRjam. # OuMn inari«t fitoaa. # Bh*«p 
66m s wt g W pttoaa). * Change on wash. pwsMonN 


:b J. ^ 

mm 


(t JUKI S-.BOAA BAM 

•m 


*4 

*»r 

-8 

o8 




US INTEREST RATES 


■ IjONQQBJBTTURODPTXmtLffFqeSOjro 84ma otIOOW 


US 


LiBcUrae 


Mar ton Ms. 


Fsdteristtfetonsnaon- 


a 



Treasury BB* 

1 

1 

1 


SorSce 

Price 

Sep 

■ CALLS 

Sap 

- PUIS 

- B US TREASURY BOND nnURBO (C8T| $100X00 32ndB OMOOK 


QOf 

174 

Itooyar 

6X2 

Dec 

Dec 


Open 

103-21 

103-01 

IfM.W 

UfoH 

CharwOT 

Hkdi 

> -u. 

&L vcL 
331,731 
1635 
535 

Qhd Ln 

Itoonoefc— 

Tkaa susulti 

+10 

Ttoss jw- 

Am mar 

_ 8J2 

RfQ 

99 

2-43 

3-1+ 

1-69 

3-30 

sn> 

Dec 

103-11 

102-19 

irti ~ii 

-o-is 

-0-15 

J* ay 

10322 

103-01 

103-03 

I0M3 

372X66 

31396 

3X61 

IWDO MX** 

Ssnonto — 
Oca yew 

mss s re.. B 

*re 

4U 

»pr 

— 0 Jo 

7.19 
751 

100 

101 

2-09 

1-43 

2-48 

«+ 

2-24 

2-58 

4-01 

4-40 



&t -sot 

BtriL Qrii 3270 AM 44ST. RMOTB dayto epee toe. cats 8734* Piae 431* 

MV 

w B ii 

1UWD 

“0-1 1 

IUI-/CO 

*Ul“aC* 


*9 

• *■ 
** 

• m 

*« 


vi 


-n 


BOND FUTURES AND OPTIONS 


France 

■ MOTIONAL FBBICH BOND RJTlfftES (MATF) 


Ecu 


Japan 

■ NOTIONAL LONG TERM JAPANESE OOVT. 80N0 PVTURES 
QJFFQ YIQOni IQOtfaa of 100% 







Opan 

Settprica 

Change 

High 

Low 

EeL vo L 

Open InL 


Open 

Settprica 

Change 

Hgh 

Use 

Est voL 

Open W. 


Open Ctoaa Chanoe Hgh Low EeL vo/ 

Opan Wl 


Sep 

114X8 

115X8 

+0X8 

115X8 

113X0 

261411 

126X11 

Sap 

62X8 

83X0 

+0X4 

84X0 

82X0 

732 

5X20 

Sep 

108-75 109X9 109.37 3873 

0 


Dec 

Mar 

113X6 

112X0 

11178 

113X8 

+0X6 

+0X6 

113X6 

112X8 

112X6 

112X8 

1.074 

2 

10X33 

150 

Dec 


3326 

+0X4 


" 

“ 


-UHEmi 

wads vadsd an APT. M Opan kaweri tgs. m far pwrioue dey. 


'***■+»* -> 


■ LONOTBMfWBNCHBONDOFnONeptATgQ 


Strika 


CALLS 


PUTS 


Price 

At 

Sep Dee 

Jul 

Sep 

Dec 

112 

4X0 

4X8 

aio 

120 

_ 

113 

2.70 

a«6 

020 

1X2 

320 

114 

1.75 

' 325 2X0 

024 

1.78 


IIS 

1.10 

2X6 

0X1 

2X7 


116 

0X0 

1X3 2.06 

1X0 

2X0 


Est. vei. saw. 

CSfcSBJK 

Pies 64X40 . Prw4cus ctaire span M. 

CMi 354X24 PBB 387X01 


FT-ACTUARKS FOOD BfTEREST BONCES 

Frf Oa/t Thur Aecmad 

UK OK* Price bMSoM Juo24 cMngeW 


Jun 23 


ad a4 
ytod 


-a* 

-0 


w 

Jon 24 


Day* 


1 UploSyawsPO 

2 5-15 years pq 

3 0*arl5ywn(ffl 

4 toadMmaUes ft 

5 41 stocks £1) 


120X6 

-0.16 

121X7 

1X2 

177 

6 

139X3 

-039 

139X7 

2X7 

142 

/ 

15622 

-051 

157.13 

2* 

541 

8 

17131 

-4L47 

177.14 

2 22 

136 


137X4 

-033 

137X0 

2X4 

109 

9 


P6) 


.on 


10626 

17047 

17123 


-005 

-030 

-027 


126.15 


*0.16 


Jun 24 Jm 23 Yrago «gh 


Low 


Jma4 Jun 23 YTago 


Md- 


Thu’ 

JOT 23 

Accrued - 
htoreN 

NdaC| 

yMd 

18624 

1.18 

2X3 

170X8 

0X7 

2X6 

171X9 

ore 

' 2X8 

127X6 

2X6 

6X8 



Vff 


losr Jun 24 Jun 23 


Uw 


Ouna iiy 

■ NOTIONAL GERMAN BUSK) 




FUTURES {LIFFET DM250 JOO lOOtha <* 10096 


Op*n Sett price Change 
Sap 3219 9166 -067 

Dae 9067 91.13 -067 


15 yrs 
20 yts 
faradLf 


«*» 

8294 

9200 


Low 

9165 

9067 


Eat vo/ Open bit 
176892 153478 

709 4288 


868 869 760 864 ?1/B} 667 09/1; 

665 8.48 769 279 ft/B B60 2&n 

449 86 8.13 275 (1/Q Ml 20n) 

858 854 867 888 (1/8) 662^4 >1) 

|W — 


ass 

870 

870 


848 


■£ S£ I-2 8 s* r<s 181 

S£ 5£ 2^11® 863 tor 

879 873 839 005 K/S 865 Son 


.1 

-I 


Inflation aria 1094 . 


Up to 5 yis 
over 5 ys 

i8 


878 

894 


872 

361 


101 |l/5) 2.13 


365 369 69169 268 1 
■ 5 years — 


2.72 

878 


266 224 265 
872 366 279 
— — — 15 years 


a/a i.i9 nwg 

(21^ 270 (XVT) 




■26’ 


BUNPPUHUBE8 optima (UffQ OM2SOOOO Pobitaot 10094 


Strta 

Mae 

9150 

9800 


“ 


CALLS — 


— ... 


PUTS 


Aug 

Sot 

ON 

Dec 

Aug 

Sep 

ON 

Dec 

148 

4.88 

1X2 

1X8 

1.12 

1X0 

1X9 

22S 

120 

1X7 

140 

1X7 

124 

1.71 

227 

2X4 

0X9 

122 

121 

1.47 

1X2 

1X6 

2X8 

ZX4 


Average 

FT FIXED IN T ERES T INDICES 


OowLSece. 


9 / g8 1060 gt<a 7T9 qoa) 967 969 962 960 (W 769 pofl] 661 819 “ 964 (US 7 48nom 

t"*n**o n yWds am shown above. Coupon Banda: Low; 094-7?*%; Mrfun 994-101*%; H&z 11% and over, f Rat ytefd. ytd Year to ' V 

OILT EDGED ACTIVITY INDICES 

June 2<6aie 23Jwie 21 JunajO Yr age Wflir Low* Jane 23 June 22 Jw „ 


■^4 

94 


June 17 


E*t vcL OT. CM* 17478 Puts 12688 PtotaUl a*f opao kiv, QOT 2127K POT 1W8S4 


•far 1864. 

K and Ftad 


318} 91.71 9210 91.05 9069 91.14 9668 10764 9069 OR Edged pargatoa 926 034 ITT 

^ 10215 10848 10763 107.70 10231 114.00 13367 10763 M.1 SS S £1 

^ bfah WOTccnOTtoon: ’Sxev pviriN} . tow BOSS . bWi» oJ^ 


UK GILTS PRICES 


. feii ... 

•V - 


■ NOTIONAL MBMUM TB8N OSMAN OOVT. BOND 
(BOeLKUffq- DM25ft00O 1000M Of 100* 


WesE+or- 


_1994_ 

Wail Lot 


Jfafae « M PMceE *er- 


Open 


S«o price Change 
97.14 -<L2S 


S»P 

Italy 

■ NOTIONAL ITALIAN OOVT. BOND jBTPJ FUTURES 
(UFFg* Lie 20ftn IdOttwof 100% 


Est «o( Open tot 
0 76 


Sep 

Dec 


Open 

10365 


Sett price Change 
10260 -160 

10166 -160 


10840 


Low 

10276 


Eel VC4 Open tot 
37342 59440 

0 100 


■ ITALIAN GOVT. BOW? (BTP) FUTURES OPHONS (UFTg Um200m 1009 b of 1QQ% 
calls puts 


Strike 


Price 

Sot 

Dao 

SOT 

Dec 

10880 

2X0 

3X5 

220 

3X0 

10300 

226 

3X3 

246 

4.18 

10360 

2.10 

2X2 

2.70 

447 


Eat- ML M*L COT 840 Pot 74a Prariaus rfayl opan he. COT 8E913 Pias 25488 


Spain 

■ NOTIOWAL SPANISH BWP FUTURES (MgFl 


atertTfUsssopliRielton} 
TuetlOpeLtlBBttt- into 
fctotiriaeisw 1248 

iiwspcwttt- — ur 

12pei99S_- 11J5 

Bsh8KtoB9M5 106 

Witpc1995 8JT 

Traas IZLpc 1 892tt — . 11.75 

14k 1996 1263 

1 Pape 1996#$ • 1134 

&th13liK1996tt 1164 

COmantanlQpc 196B 147 

Cm 7K 1997## 7J8 

n«i3UKiawn — lire 

Ben IDfec 1997 963 

nttoHdSl987#* 156 

EffJl ISpc 1387 1252 

9*K1998 ISO 

Tress 71*K 1996ft 748 

Tress &Lpc1B95-06ft_ 769 

MKVM 1165 

Trees ISJ^e-SSft 1237 

E*BlSpc1898 XL63 

Tree 9>2PC 1999ft 113 


— 1994 „ 
N(t> Lee 


*0 


ni 


- ICO 
103 HOd 
119 101(3 
115103^6 
469 mu 
567104Bfl 
863 (OBU 
K63U0U 

662 11LJ 

696 lIDJi 
7M IBP, 
742 SNJ 
7J011KN 
763 MBS 
763 1®* 
80S 1I9H 
6T8104BN 

■ m 


114 
817 
8*4 111. 
831 .1254 
8*1 U2U 
842 1H4 


-«« 

-A 

-A 

-A 

i 

-A 

-A 

i 

-A 

-a 

-u 

-h 


104 100 

1«B 1004 
I03i3 10m 
IQ7A 103% 
BWa 87% 
10733 104% 
T13% IMS 
TT7A 116% 

«m Ti*a 

TITJ} 110% 
117A 10% 
100* 9B.V 
121 U 112% 
114* U6B 

1104 «ny 

131JI 119U 
114H 1044 
106* 86% 
MB MB 
131* 117% 
HO* 1243 

tasa in* 

116* 103* 


1 0K 2003. 


Tots 11%k 9001-4 

fl—w % B c 2nn* 

nsss6%pc 2004ft 

CMs9%k2005 

TIOT WjK 3BS-0 

7%k 2008ft 

SKSOOMft, 


Tim 11%K 2003-7 

Trees ftijflc 2007 ft _. 

13%K-0*-8 — 

Tots toe 2008 ft 


937 

8X1 


-ft 

1027 

108 

111» 

-% 

4* 

7X5 

7212* 


910 

8X4 

HMfi 

-a 

7J4 

164 

87ft 

-a 

906 

180 

104ft 

-a 

1027 

920 

120% 

~a 

134 

170 

®fl 

HB 

M4 

ire 


-y 

1022 

920114J1N 

-u 

8X2 

188 

MfiN 

-% 

10X1 

921 

127ft 

-41 

175 

6X5 

102U 

-ft 


197* T05B 
IBIS 110% 
06* 714 
USA 103 

loot 8SS 

135% 105% 
W. 119* 
112H 91% 
111% S3* 
138* 113% 
119* 963 
1S1& 13S% 
12*J1 W1 


awBsc *sr- Man u« 


7KB 


s» 8 =Aa is s ; 

?!*51 P0J1 142 363 11 


ss s s 

4%pei)*ft — lirei) 367 568 i3 


?5? “O’opmi 


— P88 180 Ml 


tW Hto saVm e 
Trees 6 k ZOOS. 


Cser In la 2011ft — 
Trees Sk 2ln2ft 


Opm 


Sap 

Dec 


Settprica Change 
89.71 -0.11 

8965 


High 

83.79 


Low 

89J83 


Est « L Open tot 
SOJSS 98673 
3 


UK 


reels mesa Tan 

Etoii2%Kuea 

Tim 10%* 1999 

TiM* BK 1999 ft 

CmsafBsiQ%Kl699- 

HmRBfM'99 

Me 2009ft, 


■ NOTIONAL IB# OUT RJWWEB CJffB* gSQjQOD 32nrSa ot inoee 



Open 

Settprica 

Chnge 

Jun 

100-30 

100-30 

-0-24 

Sop 

100-00 

89-24 

-0-22 

Dec 


98-24 

-0-22 


w^l 

TOT-25 

10D-27 


LOW 

10860 

99-13 


Est wl Open tot 
207 6873 

63569 122451 

0 411 


Urn 13K2DQ0. 

1 0pe 7001 

TKVlft 

7KWA- 


9%K20Q2_ 
OK 2003ft. 


lore 856 114% 
835 635 W7JS 
663 863 90% 

860 666 1031 
- - 100* 
8M 664 W1% 
1060 68(119*1) 

846 666 1056 
767 663 

769 667 91* 
9JQ 891 104% 
640 870 95* 


-A 

-% 

-a 


129* 113% 
1214 100% 
TOTH 996 


Urn toe 2013ft 
7%K 2012-1 5ft- 

Tim 8%K 201 7ft 853 

BtoliapC 13-17— 


145 

8X4 

94ft 

-ft 

rre 

145 



a* 

1M1031N 

a* 

US 

106% 


7.4* 

131 

m 

141 

152 

9S% 

-B 

634 

846 KJW 


153 

149 

102ft 

921 

178 

WOft 

-0 


115ft 93 

98* 76ft 
lSStt 161* 

’S5 'SI? 

93% 72* 
1«B 98ft 
114% 91* 
128% DM 

159% 137% 


17# 

-% 1 

|i 

If! 

MSwe”*?! ,w *2 **2 1 

yjpe^ft — jg.Tl 313 966 WAN -,C f 

4%K22?.-P»u 196 3 uafi SS 

5 i^%KS 3 Wtfys.? 

*a*BBaBWfts^ttra!r- 

MwBwdtatnwt 


J74* are M2 

9S3 m2 I?* 

2w 179 699 

M3 197 1M% 




'm 


*%■ 

• 

■“ ■/ 

<A 

:% • 


-a 

-% 

-B 


13143 105% 

100* 100 

I16A 101% 


”*MQ*«ii%ato— 
jjjto B* T0 %k 2009.. „ 
11*18*3013 

"ESSES***— 

«3war-a..-- 

WteMreeiSKSmiu 


J* Bat Wnsfl^af. MM UN 


imp 11a* 

S'Sg 


CUA4pc. 


810 

662 


a 


101* 

31 


*03% 

9«* 


Wrlma%Kft 

QOTa%Bc'6ita. us 

Itm toe *80 ML 667 

Oaaota3%pc 862 

1im2%K 677 


- 43H 

- «A 

- 37B 


*A 

~h 


a 

- 38% 


• lap’ mck. St TsXre* 10 novOT/raots on apOTtton. E Aucdai beats, to 6 k dvfaand. OnOTg ir/riarieia «n 


*1% 


8B% 4(tt 
>*H 300 

71 SM. 
44% 33% 

39% 284 

87% Z7M 


Utotori3%K*re8. 
UfiaKVO/tt— 

!WtoRreto1l%K20BI 


843 

827 

863 

818 

686 

11.62 

1836 

1866 

873 

9,48 

1811 

443 


8B 116% 

IS ,w » 

MS 117 

- 67 

- in% 
I* 

M2 


.w M3, 


as 


1*2 

__ mis 

*% MB% 

m% 


t 

•- 2 


- Si -sSX 




1200 


39 

- 31% 
985 115% 
821 «r% 
*80 UB% 
469 

- 137% 


- -+1* 


44% 33% 
— , 40% 20% 

™r'TWf Itt 

79 16% 

— 196% 179% 

— H*% 133% 

— iB6% m 


.... 

* • H H 

: vs**. 


■t. 


•% pH' 

»• - 
*♦« 
^4% 










_£^<vnn,iAl. TIMES WEFlfRNm 


CURRENCIES AND MONEY 


markets report 


Support fails 


Dollar 

DM per $ 
,t £8 


Yen per S 
106 1 


Central banks launched large 
scale co-ordinated intervention 
to support the dollar but the 
US currency was unable to sus- 
tain brief gains, writes Motoko 
luch. 

Taking their lead from the 
US Federal Reserve, a legion of 
central banks repeatedly pur- 
chased the dollar in a move the 
markets had been anticipating 
all week. 

The dollar at first rallied 
after the intervention began, in 
uie European afternoon, gain- 
ing more than a yen and about 
a pfennig and a half. But 
although the Fed was stm semi 
purchasing the US currency 
after 3fl0 pm GMT, the dollar 
lost most of Its ground by the 
close of London trading. 

The dollar ended in London 
at DM1.5972, down from 
D Ml .6035. Against the yen, tt 
dosed at Y100.900. down from 
Y10L150. 

■ Analysts said the interven- 
tion had reinforced market 


cynicism about central hank 
action. "The intervention has 
been a miserable failure," arid 
Mr Tony Nozfield, UK treasury 
economist at ABN/AMRO 
bank. “They have not scared 
off any speculative trading.” 

Although later denied, 
reported comments from B»nif 
of Japan governor Yasushi 
Ifieno about the inability of 
Intervention to “dictate cur- 
rency levels" kept the markets 
bearish. 

■ Pound bi Mow York 


Sterling 

-■ Spect' 

VS5 ' ' 



May 199*: .'-Jon 


134 

133 

1.52 


DU pore 
234 r 


French franc 

FFrpierDM 

3.400 — - 


130. 



May. 199* 


Jim 


27 

May 1994. 


24 

Jan 


2M 


27 

UW 


199* 



Jin 24 

— r ureal — 

- Prat, dose 

£ spot 

1.5515 

1-5385 

1 Mb 

1-5SB 

1.5377 

Srrib 

15406 

12360 

IF 

15440 

1.5311 


The dollar was lolling below 
Y1DO50 and DM13950 when the 
Fed began the conceited inter- 
vention around 1330 GMT by 
buying dollars for Y100S5 l It 
then followed about ten min- 
utes later by buying the US 
currency for D Ml. 6070/80. In 
the meantime, other central 


SoucecFTGrapMta' 

banks bad also started to buy 
the dollar. 

As many as 17 central banks 
bought dollars in an effort sim- 
ilar to the group action taken 
on May 4. The extent of the 
intervention was understood to 
be between $2bn and $3bn, pri- 
marily from the Fed. 

The central banks briefly 
turned sentiment towards the 
dollar, which rose to a high of 
around DM1.61 and Y10IJJO. 
But the action failed to push 
the dollar above key iretmirmi 
levels which analysts placed at 
DM1.6250 and Y1Q230. 


“We have to see the inter- 
vention pushing the dollar to 
these key levels," said Mr Paul 
Cbertkow, head of global cur- 
rency research at UBS. “With- 
out that we would expect the 
technical aspects of trading to 
r -prrtat n bearish.” 

Mr Chertkow said the central 

hank move came too late. “If it 
had occured last week when 
the pressure first twgwn than 
maybe it would have turned 
the market ” he said. 

■ Sterling had a banner day 
against the dollar, at 

&L5422 from $13386, and rising 


above the SL55 level in after- 
hours trading. Against the 
D-Mark, it closed in London at 
DM2.463, from DM2.4671. 

A significant drop in the UK 
current account deficit for the 
first quarter gave the pound a 
boost, while the ailing dollar 
gave sterling farther support. 

In the UK money markets, 
the Bank of England provided 
liquidity of £l58m after fore- 
casting a revised shortage of 
£650m. The bank provided late 
assistance of 2390m. 

■ In Europe, the D-Mark 


24 


remained strong against the 
crosses. Against the French 
franc, it closed in London at 
FFr3.425 from FFr3.422 and 
against the lira, it closed at 
L984.6 from L982.6. Against the 
strong Swiss franc, however, 
the D-Mark closed at SFiO-838, 
down from SFrtU&L 


Jm 24 c s 

Haw 157JS7S - 157X05 102270 - W2370 
m 2EK0D - 2681 00 174300 - 173000 

ban* Q.4SW - Q.<578 02960 - 029B8 

Priwd 3WU - 345&B 221600 • 22385.0 

Rusk 306828 - 3084.40 199000 - 200000 

UAE. SJB885 - 57036 16715 - 16735 


POUND SPOT FORWARD AGAINST- THE POUND 


Jon 24 

Borapn 

Austria 

Bdgken 

Denmark 

Finland 

Franca 

Germany 

Greece 


mssEE^MEsaam 


HE DOLLAR 


Clewing Change BUMtor 
mfcl-polnt on day spread 


Day's Md 
Ugh low 


One month T hr ee months One year Bank of 
Rate MPA Rota MPA Rata MPA Ena Index 


Jun94 


dosing Change BMfoftar 
mM-point on day spread 


Day's mid 
Ngh low 


One month Three months One 
Rare MPA Rata MPA Rate 


ear JJ* Morgan 
MPA Index 


Europe 


13 


MONEY MARKET FUNDS 


Money Market 
Trust Funds 


tw He Cm Mb 

CftF Money KanagmentCn Ltd 

ta many boa loc&ing* ths zji dtctoim 

CttaftOMnartnd^ I 405 -I inlven 

DtvrafeOnrd rayon] in -I <u j-wn 

DeonoeDnlkglus -I tula-Msi 

The COff ChBfMaa Depodt Account 
?hmQmi UMratCSt wW Dd-Sea ISIS 

Orpo«l! I +.71. -I LMlj-ttai 

OeoL BtL ol Ho. td Ctaorh of Eagtantt 

2 lei 5M«t loodan ECTV MO P71-MH IBIS 

I <w - I .laali-UBi 


Money Market 
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5*ra efcxwei ij:s iu# I i.-jl re 

Onantua Tit Hc-Gwentem 500 free 

a U Jm a ttnnen MU 4CU 
nouua. ibci»_ . I 7.3 3 + 3/3 I 

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tUMi-rragnata:*)! iuo riul 

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ntDUHiM,- . 
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30 Oy Rom. Iwn ECln XI. 




07I-+LJ8 8070 

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184 471 

SJO 3 US 
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431 330 

a 17 


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SJJ IMO 


Jrritan Hodge Booh Ud 

10 wno» cwn a 1 sn 
UeHrataftodia | 1 1 » 131 

mriMi<a.'<wia I 4 11 : 

iDituhBikau^l 1 4 tl 

Itarnbeictyde Flnaace Group 

MtaiRiktr cmm. URamumB 

fOOJJUO, ll^S 1ST I 

Leopold Joseph 6 Sons Ltadted 

-V Cream -Jr* Lntn I TV rt* 


v» 

**» 

433 ! 

SJ3l 

4 34 I 
4*1 
4 IT I 


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MM1SMO 


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US I Or 


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iuuuiiMnLiiu«wnx' c-i-ierwas 
mu ic wd.i _ . I ]g»:-M>7s Lio»;l rear 

Udawort Beam Private Bank 


100 

ft 71 

i on 

Mai 

ISO 

2BJ 

1!0 

rm 

37S 

741 

in? 

MDi 

400 

100 

4017 

M*l 

429 

110 

43) 

MU 

4 75 

ISO 

4 OB 

IMI 


Italy 

Luxembourg 
Netheriands 
Norway 
Portugal 
Spain 

Sweden 
Switzerland 
UK 
Ecu 
SORT 
Americas 
Argaraina 
BratS 
Canada 

Mexico (Mew Pono) 

USA 

PactScTMrfcfia Eoet/Africe 


(Sch) 

172093 

+00581 

916 - 071 

17.4572 172299 

178384 

0.3 

178899 

02 

. 

. 

1148 

Austria 

(Sch) 

(Bh) 

50.7878 

-00507 

2S2 - 100 

51.0800 50.4830 

50.8063 

08 

5081 28 

-08 

HIIttSM 

-0.1 

1158 

Belgium 

(BFr) 

(UKi) 

9-8770 

-00167 

709 - 830 

9.7171 08229 

07014 

-18 

98965 

-08 

9.7126 

-04 

116.1 

Denmark 

(DKr) 

(PM) 

51774 

-00262 

678 - 870 

(L2390 8.1440 

. 

re 

- 

- 

- 

- 

818 

CTarlniH 

rgiMii 

(FM) 

(H-r) 

8.4379 

-00049 

338-421 

84556 83812 

84461 

-08 

54467 

-04 

84434 

-0.1 

1009 

France 

(FFi) 

(DM) 

2.4630 

-00041 

619-641 

2^796 2.4485 

2.4072 

08 

2.4818 

02 

2.442 

08 

125.0 

Germany 

m 

(1*1 

372207 

-0881 

191-822 

375851 300542 

ra 

- 

- 

- 

- 

- 

- 

Greece 

8*) 

oq 

12164 

-00009 

153 - 175 

1.0226 18102 

18178 

-0.4 

18178 

-05 

18187 

-02 

1048 

Ireland 

m 

(U 

242527 

+1.06 

371 - 882 

qifwoii QAna 5R 

243082 

-52 

244487 

-02 

248382 

-28 

7&B 

Italy 

(U 

OH 

50.7678 

-OJ0507 

252 - IDO 

51.0680 504830 

50-7576 

08 

508126 

-04 

508326 

-Ol 

1158 

Luxambourg 

(LR) 

(Ml 

2.7631 

-0002 

617 - 845 

2.7730 2.7436 

2.7B31 

08 

2.762 

08 

2.7407 

08 

1198 

Naorariarate 

(H) 

(NKr) 

10.7229 

-0012 

IBS - 289 

107703 108656 

10.7173 

08 

10.7296 

-08 

10721 

08 

06.1 

Norway 

(NKr) 

(fcsl 

254.763 

-0483 

551 -975 

256l204 253. 11K 

255730 

-48 

257883 

-48 

- 

- 

- 

Portugal 

(Es) 

(Pta) 

204.104 

-0562 

980-227 

205894 202884 

204884 

-2.7 


-28 

208.804 

-2J2 

852 

Spain 

(Pta) 

(SKr) 

11JB289 

-00177 

204-373 

118041 11.7833 

118819 

-28 

118869 

-28 

118849 

-18 

753 

Sweden 

(BIG) 

(SFr) 

2.0642 

-00121 

629- 654 

28780 2.0602 

28628 

08 

28595 

08 

28348 


1208 

Switzerland 

(SFr) 

« 

- 

- 

- 

. 

- 

- 

- 

- 

- 

- 

808 

UK 

« 

- 

1^860 

-00002 

852 - 888 

18898 18782 

18889 

-08 

1.2833 

08 

1889 

-08 

- 

Ecu 



- 0-830078 - - 

peso) 1.5386 4UOOSS 381 -390 1.5476 1^300 

(Cl) 3927.91 +83-4 696 - 886 394ZJX) 3801 JW 

ICS) 


2.1415 MU7117 406 - 426 
62258 +0.0168 205 - 308 
1.5422 +0-0036 418-429 


2.1646 2.1274 
52493 52018 
1J512 1.5335 


Austreb 
Hang Kong 


(AS 2.1176 +0.0226 184 - 188 


Japan 
Malaysia 
Now Zealand 
PtiUpptnoa 
Saudi Arabia 
Skigopore 

S Africa fCnmJ <R) 

S Africa (Fin) (FQ 

South Korea (Won) 124320 
Taiwan 
Thaflaid 


2.1277 22957 
12888 11 .6524 

P4 482754 +0.113 588 - 921 482570 481100 

-0222 481 - 716 168270 164.180 195223 
4.0146 3.8748 
22284 22014 


(V) 155203 

NS) 39942 +0.0139 925 - 958 

(NZS) 22199 +80188 172-206 

(Poa^ 412381 +02871 202 - 550 422284 402611 
(SR) 6.7833 +0213 818-848 52170 5.7511 

(8J) 22563 +02041 543-562 22874 22435 

52807 +02342 883-931 S296S &48M 

72062 +02278 851 - 222 72223 72088 

+3.76 331 -449 125028 123723 
(T9) 412224 +02181 744-704 41.7887 412278 
PO 38.8771 +0.1066 628-013 3&7015 3&662S 


2.1433 

-1.0 

2.1496 

-18 

2.1804 

-18 

85.7 

18414 

OB 

18401 

08 

18342 

08 

838 

2.1169 

04 

2.1153 

04 

2.1144 

02 

_ 

118104 

08 

118066 

04 

118334 

-Ol 

- 

155223 

28 

154403 

3.1 

150153 

38 

1B&1 

28182 

03 

2.6217 

-0.4 

2.6283 

-04 

- 

- 

- 

- 

• 

" 

• 

- 


SORT 

Americas 

Argentina (Poeo) 

Bred) (Cr) 

Canada (CS) 

Mexico (Now Paso) 

USA (S) 

PaoUcAOddla East/A(rica 


AustraBa 
Hong Kong 
inrae 


118825 

+0812 

800 - 850 

118850 11.1810 

11887 

-08 

11895 

-04 

118325 

04 

1057 


-an 

000 - 400 

33.1440 32.7550 

320425 

-08 

32.99 

-09 

w rw 

-04 

105.1 

82750 

-00255 

725 - 775 

53055 52725 

5284 

-1.7 

6803 

-18 

53475 

-12 

104.6 

58026 

-08288 

STB - 070 

58442 58839 

fiJKKfl 

-07 

58186 

-18 

58851 

-18 

75.9 

54718 

-0018 

700- 730 

56080 64446 

5.4764 

-1.1 

&.4B44 

-09 

54473 

04 

1054 

18972 

-08063 

968 - 976 

18102 1.5685 

18081 

-as 

18985 

-03 

1.6918 

08 

1058 

241850 

-08 

400 - 700 

245100 240100 

2429 

-57 

24575 

-38 

24505 

-1.9 

659 

18173 

+0.D049 

180- 185 

1.6246 18052 

18159 

1.1 

18132 

1.1 

18048 

08 

- 

157285 

-3 

200 - 330 

158180 156575 

15778 

-58 

15878 

-57 

1825.15 

-53 

77.5 

328200 

-Oil 

000 - 400 

351440 32.7550 

328425 

-08 

3299 

-09 

3505 

-04 

105.1 

1.7917 

-00065 

912 - 922 

18030 1.7816 

1.7SZS 

-08 

1.7933 

-04 

1.7885 

08 

1058 

88532 

-08241 

522 - 542 

78006 59190 

58577 

-OB 

58722 

-1.1 

68722 

12 

902 

1B5200 

-07 

100 - 300 

165300 165230 

165855 

-128 

169875 

-9L9 

17555 

-5.1 

952 

132850 

-0875 

300-400 

135000 131.780 

132.715 

-38 

1354S 

-53 

13680 

-27 

904 

78704 

-08295 

666 - 741 

7.7242 78369 

7.6884 

-28 

7.7214 

-27 

78094 

-28 

808 

18385 

-0811 

380-390 

18510 18330 

18383 

. 02 

18373 

04 

18264 

09 

108.0 

18422 

+08038 

418-426 

18512 18336 

18414 

08 

18401 

08 

18342 

05 

055 

1.1892 

+08029 

967- 997 

18055 1.1917 

1.1978 

18 

1.1951 

1.4 

1.20B2 

-OB 

- 

143754 


- 

- 

- 

- 

- 

- 

- 

- 

- 

08977 

-a oooi 

978 - 077 

09978 09978 

_ 

_ 

_ 

. _ 

ra 

ra 

_ 

254784 

+4885 

700 - 707 

2547.07 2457.00 

- 

ra 

• 

- 

- 

- 

re 

18887 

+00044 

883-B90 

18901 18870 

18908 

-18 

18958 

-20 

14213 

-23 

926 

_T»K>; 

+0003 

880-910 

38910 53880 

53085 

-04 

53913 

-08 

53987 

-08 

re 

ifrica 

- 

- 

- 

- 

- 

- 

- 

* 

* 

982 

18727 

+00109 

727- 726 

18748 18620 

1873 

-03 

18732 

-Ol 

187B9 

-08 

874 

7.7285 

-08015 

260 - 290 

7.7295 7.7200 

7.728 

Ol 

7.7305 

-Ol 

7.7447 

-02 

- 

318888 

- 

660- 725 

318725 318660 

314488 

-51 

318638 

-29 

- 

- 

- 

100900 

-085 

850-960 

101850 998900 

100706 

28 

100265 

28 

9783 

50 

1456 

28900 

+0003 

895 - 905 

28910 28802 

28826 

38 

2879 

1.7 

261 

-08 

- 

18882 

+0.0095 

976 - 988 

18989 1.6009 

1.7 

-18 

1.7048 

-18 

1.7283 

-1.7 

- 

278000 

- 

000 - 000 

278000 258000 

ra 

- 

- 

- 

- 

- 

- 

3.7502 

-00003 

600 - 603 

57503 57500 

57508 

-02 

3.75ZB 

-03 

57855 

-04 

- 

18273 

-00009 

270 - 275 

18281 18258 

18265 

06 

18282 

03 

18283 

-Ol 

- 

3.6263 

+00138 

245- 280 

56260 55700 

56408 

-51 

56691 

-48 

57458 

-53 

- 

47370 

+0007 

270 - 470 

4.7470 4.7200 

•4.7707 

-88 

48295 

-78 

- 

- 

- 

ao&eoo 

+086 

400- BOO 

805800 605300 

806.6 

-*8 

8151 

-52 

831.6 

-51 

re 

268250 

•00513 

000 - 500 

TSJnOD 259000 

26945 

-09 

25SB5 

-09 

- 

- 

- 

250800 

+081 

700 - 900 

258900 250400 

2S.1S2S 

-56 

2528 

-52 

2578 

-27 

- 


iron rata tor Jui 23- Bd/oltar xpiaadt Xi Be Pound 8po« tuMa ahew ooly Bve hot tnr»» dacknta ptac»». Form'd man irn rxX chwjtly quoted to Ow maiVac 
1x4 am tapDod by emwi kaamt mat. f 


the DcOor Spat nMa dwhad turn THE 


CROSS RATES AND DERIVATIVES 


Bucku Mk cafcxAdod by tin Beik el Engtand. Btm amaga 19BB - lOaBkL Oonr wid MkHaM M bwti Mi and 
: WM/REUTBRS CLOSMO SPOT RKIS. Boras wfum are rauadsd by dw F.T. 


(AS) 


Malaysia (MS) 

New Zealand (NZS) 

PhHppkioa (Poeo) 

Sauri Arabia (Sfi) 

Singapore (SS) 

S Africa (Com.) (R) 

S Africa (m) (RJ 

South Korea (Won) 

Taiwan (TS) 

Tholend (Bt) 

130H rets tar Jun S3. BkiiUbr qaoadi h the Ddfrs Spot table show only die tat three dsckral ptscao. Fontod ratre we mi rhacOy queiad id the martoK 
au n kiplad by ament btma nSss. UK, katand 4 BCU eh cyattad h UB currancy. 4P. Morgan rxxnM kxtaaJun23. Ben nwsga IBOOalOO 


EXCHANGE CROSS RATES 

Jun 24 BFr DKr FFV 


DM 


K 


NKr 


Pta 


SKr 


SA- 


CS 


Ecu 


Belgium 

Denmerit 

Renee 

Germany 

Ireland 


Norway 

Portugal 

Spofci 


Sufttzariond 

UK 


US 


Ecu 

Yen par IJBO; 


(BFr) 100 
(MO) 52.45 
(FFi) aaia 

(DM) 20-01 
pq 4926 
(L) 2293 
(R) 1537 
(NKr) 4725 
(Es) 19.93 

Ptfl) 2427 
(9Ki) 4224 
(SFr) 2429 
ff) 50.78 
(Cfl 23.71 
ffl 3222 
CO 3282 
38.47 

DwMi krone. Frsndi 


1826 

10 

1127 

3229 

8225 

0299 

3202 

9227 

3.799 

4.741 

8.187 

4689 

9.877 

4220 

6-276 

62.19 

7225 

Franc; 


1622 

8.718 

.10 

3u425 

8204 

0248 

3254 

7270 

3213 

4134 

7.138 

4088 

&437 

3241 

5271 

5422 

8261 


4252 

2245 

2218 

1 

2424 
0.1 02 
0291 
2298 
0267 
1-207 
2064 
1.183 
2463 
1.160 
1297 
1523 
1215 

Kronor, and 


2002 

1360 

1204 

0413 

1 

0042 

0388 

0948 

0299 

0488 

0380 

0482 

1316 

0475 

0889 

0530 

0780 

Swedbn 


4777 

2506 

2S74 

9642 

2387 

100 

877.7 

2262 

9S21 

1188 

2052 

1175 

2426 

1133 

1573 

15S85 
1886 
Kronor par 


6.443 

2255 

3275 

1.122 

2718 

0114 

1 

2577 

1386 

1254 

2338 

1239 

2763 

1291 

1.792 

17.7B 

2149 

10 : 


21.12 

1138 

1271 

4352 

1055 

0442 

3280 

10 

4209 

5252 

0369 

5.1B4 

1072 

5307 

6352 

6839 

6236 


5013 402.1 2329 4086 1370 4218 3338 306-5 2633 


HB EUROPEAN 

An 24 Ecu can. 

rates 


CURRENCY UNIT RATES 

Rata Change M+Z-frorn M spread Dhr. 
egelnetEcu on day pen, rate v weetost Ind. 



2109 

1221 

2133 

1833 

2212 

1893 

1608 

1829 

Inland 

0808828 

0793206 

-0000398 

-181 

523 

3012 

2418 

1481 

2448 

1.1 BS 

2838 

1828 

1844 

1824 

Motherlands 

219872 

215608 

+IL0003S 

-185 

517 

1054 

8287 

4.799 

0838 

0408 

0689 

(1820 

6517 

0822 

Bright! 

402123 

308239 

+00087 

-1.46 

475 

2507 

2009 

1183 

2031 

0884 

2107 

1818 

1651 

1268 

Gorarany 

184984 

182308 

+0X0007 

-182 

481 

1060 

541 B 

0487 

0085 

0041 

0088 

0864 

8416 

0053 

Ffanca 

683883 

558930 

+000836 

077 

243 

9218 

7387 

4278 

0747 

0862 

0775 

0858 

5682 

0485 

Denmark 

7.43879 

785364 

-000119 

187 

183 

2378 

1904 

11.03 

1825 

0933 

1897 

1.438 

1451 

1200 

Portugal 

192854 

1B5B32 

-0119 

510 

012 

190 

8013 

4841 

0810 

0893 

0841 

0605 

61X9 

0805 


154250 

150220 

-0884 

322 

OQO 

1248 

100. 

5791 

1.011 

0490 

1849 

0758 

7524 

0630 







2158 

1727 

10 

1.746 

0848 

1811 

1805 

1318 

1X88 

NON ERM MEMBERS 





1254 

8888 

5727 

1 

0484 

1887 

0747 

7539 

0623 

Oram 

284513 

290740 

+0081 

982 

-509 

254.7 

204.1 

1182 

2064 

1 

2141 

1842 

1858 

1288 

tiriy 

179519 

180595 

+485 

573 

-237 

1192 

9583 

5521 

0964 

0487 

1 

0720 

7288 

0X01 

UK 

P 

l 

0779878 

—0-002389 

-090 

416 


1652 

1637 

188.1 


1324 

1312 

1507 


Belgian Franc. Escudo. Lira and Pmota 


7.686 
7096 
9.191 
par 100 . 


1239 

1328 

1205 


0649 

6.427 

0778 


1288 

13.78 

1265 


1 

9310 

1.199 


1003 

1000 

1212 


0234 

8265 

1 


■ D-MARK PUTUBgS (1MM) DM 125300 PW DM 


■ WMNUIESK MM fUTlIBBS (IMM) Yen 12-5 par Yan 100 



Open 

Latest 

Change 

fflgh 

Law 

EbL uri 

Open bit 


Open 

Latest 

Change 

High 

Low 

E3L voi 

Open b*. 

Sap 

06231 

06268 

+00033 

n rpws 

06226 

25710 

75587 

Sep 

08938 

1.0010 

+00065 

1X054 

09918 

IB, 657 

80877 



0.6272 

+00033 

08284 

0X269 

154 

2170 

Dec 

1X100 

1.0078 

+00062 

1X100 

1.0003 

393 

2X93 

Mar 

- 

08250 

- 

- 

- 

48 

710 

Mar 

" 

1.0150 

" 

1X150 

“ 

2 

444 

■ SWISS HUMC PIlTWm (IMM) SFr 125JXX) per SFr 



■ STBtWQ FUTURES (JMM) £62800 per E 




Sep 

0.7422 

07480 

+00058 

07438 

07360 

15378 

45955 

Sap 

18384 

18462 

+00072 

18480 

18384 

9812 

35753 



07487 

+0X061 

07447 

0.7422 

409 

844 

Dec 

18440 

18430 

- 

18460 

18430 

41 

854 

Mar 


07458 


“ 

' 

2 

7 

Mar 


18430 


18430 


1 

17 


13 

11 

-8 

-11 

-21 

-22 


Ecu canlnl (Asset by B» Euapsan Corarataaton. Curandaa are fri deseandtog ntauw swnotn. 
Psn a nrags ct»re> swtra Eoc spoaUredwnBedanowswdiCMrency. DW u rgsnos shoe B» 
rado baUHOsn mo spreads: nw peconwg* ratsnm bonmn dw scud raeVet md Eoj canoe raws 
tora cunan ay. and Bw madbiun ponrMsd pe c orangs dMWflen ot the curenc/s metal rats horn As 

(17AVBQ Staling and RaBoi Lin suspended ham ERM. 4c*mM cidaiated by the rewnad Timas. 

■ W LAP P L M A SR C/S OPWOMS C31.250 {cants per poraxfl 


nrea-f4Bwm-_ 
tsjWMu.aeaw — 
noooo-cr+MiM.. 
BMOB-faLMUN - - 
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Bank of babwd HU tatareat Cbetpro Acc 

94-10 MjssL saxtfi 5 li 1 a nrsasuBie 


■ , 4unBilwKKLiiininn.-tr s*i-X7'MS 

HicAm.Mn-i . l )a~i 7ooR.*9 lierosl ore> 

Lloyds Bank - bnestment Accoeut 

ri iero«MSi.ieWBiicvm c~ «m 

I llXUta] up BUM I >4+1 - I !■*! 

culuoo. I 1 15 m I sis I 

CS.kUi« I + in i'r I 4.0 Ttuh 

t id. ore. - l + rs ivi I i’iImm 


naore-_. ..la soo unlsMal 

cases 1 2 so 1 m I 73 ;* I 


Mkim Bank pic 
ni Rs> 7. SmtaraT 


moo-cae 


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5 ID 979 50D Veart, 

US 904 STS | 'rare 

MO 419 MOltssny 


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blom j 77S lap rr: 

Q4BW 27S 700 778 

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Roa Brothers Lbakad Bankers 

NOnmn ■ Walk, umtan COM JM 

1 4 :s 998) 
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9900 7S73 

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1.730 7013 

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0777744770 
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30la recsM Praai. llUBUII 01 39 041-7487070 

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1 I 979 2-81 xao[ re 

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IBM —I 975 

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MBstascra T+JO 9001 SOI I 


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COO 900 404 S-4tt 

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csomo-cMasw un us I uc e-M* 

cuunp-cron 1975 zeal ml 

000-C9J09 1 291 173 f 937ll-Mn 


ULC Trust IbnAed 

I Gn« CanbBtaae PI, untan W1H 74L 071-3400B4 

CIOiXNMam saOca . | 079 308 I 007 3-Mn 

CMiW-IOOUWProM-] 730 5«U 764 B-MB1 

CTOjQOO— I %sa — I 779 344 I -Iran 

Ilailed DemWare Trust Ltd 
P0BraB2-Hara»4 0m 091-4472430 

CapM fira Bures Prose* 

nmo» 1 4 ts ami ctwl re 

JLKnry Schrodsr ItaggB Ca Ud 

170 OrawMta. Lndoo firfsHB 071-3828000 

WsdeOcc. .1 9873 sail 933 1 un 

£10.000 and st»w< — . I +.179 900 1 4.181 Me 

Wostam That Mgk bdorast Cheguo Acc 

ns UU MI L B i SS . FTytnouO PU ISt 0797 274141 

nSOOD* 1 4.73 990 I 404] re 

C5JKW-C14.0»., | 490 im] 498 1 05 

CUN0-C4.S99 1+25 910 I 437l 02 


noils bra CaescsiM ire cr tread aren na 
otter mount arm mum or ssc raw trere tax. 
tat tre of krean raw Mtar Womitai nr raasrei W 
mok <us raora re Oron out Gists ire smuorad to 
Ide Kour w canpontaia d Hsol paH 1 
mec M ck 


ones ■ rax. ire 


I ft! ri og uv i 


WORLD INTEREST RATES 


MONEY RATES 

June 24 Over 

right 

One 

month 

"Three 

iritis 

9x 

mtha 

One 

year 

Lamb. 

War. 

Db. 

rats 

mpo 

rata 

Brigkrn 

sra 

6ft 

5ft 

5)4 

Oft 

7-40 

4X0 

- 


514 

Sft 

5ft 

54 

554 

7.40 

480 

- 


5% 

5Mr 

Sft 

541 

614 

580 

- 

B.75 

week ago 

5* 

5V4 

514 

6% 

654 

580 

— 

6-75 

4X0 

4X5 

4X5 

5X0 

5.13 

6X0 

480 

5X5 


5X0 

4X5 

5X0 

5X0 

6.15 

8X0 

480 

5X5 

ketand 

5ft 

5ft 

Sft 

594 

6ft 

- 

- 

&26 


5ft 

5* 

Sft 

5K 

6ft 

- 

— 

R M 


814 

8ft 

814 

8% 

914 

— 


7.60 


8ft 

8ft 

8 

814 

8ft 

- 

7.00 

780 


4X7 

4X9 

5X1 

5X6 


— 


“ 


5X3 

4X9 

5X1 

5X5 

020 

- 

5l2S 

— 

Swftrartraid 

4 

4K 

4ft 

4ft 

494 

8825 

380 

- 


414 

4M 

AH 

414 

414 

6X26 


“ 


414 

444 

444 

4« 

Sft 

— 

380 

— 


4ft 

414 

4)4 

4ft 

Sft 

- 

380 

- 


2ft 

2ft 

2ft 

2ft 

2ft 

- 

1.75 

~ 

weak ago 

2ft 

2ft 

2ft 

2ft 

214 

" 




■ TIM MOOmi ■UROMAHK FUTURES 6JFFET DMIm polnta ot 100M 


Strike 

Price 

Jri 

- CALLS - 
Aug 

Sep 

JU 

— PUTS — 
Am 

Sap 

un 

980 

9.48 

985 

- 

1.04 

0X4 

1.478 

7.10 

7X2 

743 

- 

0X0 

084 

1800 

+.75 

6.00 

on 

014 

088 

1X2 

1828 

2X8 

3X7 

382 

058 

1X3 

182 

1880 

1X4 

1X2 

2.50 

188 

281 

283 

1878 

044 

1X1 

184 

3X1 

3831 

4.44 


Sop 


Open 

9636 


Sod prtca 
9525 


Change 

-am 


Hgh 

8520 


Law 

96.03 


EsL voi Open Irt- 
15903 190082 


■ SUBOH FT London 
Interbank FbAtg 


4* 

- A3D 

- AM 

3H 

314 


4fl 

u 

4.42 

428 

H 

31 


5 

4tt 

4.75 

428 

3* 

3H 


5H 

52 

524 

524 

4 

4 


US DoBerCOa 
week ago 
SDR Unload Da 
week ago 

«, ■ Da m raft; 1 mar Btk 0 ndtiK Bft 0 irdhta S|i 1 yaw; U. 9 UBOH ki 

^ ‘™S-S^SJ»S*iomraiSS to me mrakel by four rattranas bade at lien 
"2 s " TVireBi* ot-iracya Ba&ys end nskred WramSnstw. 

ffi iSra^S^Blicran^r^rrenire Mxray Rtoso, US C ODa and SDR LMcod Dopools 

Eimo cunnENCY interest rates 

ja,» Short 7 days One There 

" terrn notion month months 


Doc 

9484 

94X5 

- 

94X0 

94.79 

36647 

20G41B 

Mar 

9483 

94X8 

- 

9482 

94X0 

25374 

193345 

Jut 

04.14 

94.18 

-002 

94X6 

94.12 

14784 

101196 

■ iffl 

HE MOartH EUROLUIA KTJUT1 FUTURES (JJFFE) LlOOOra points ri 10084 


Open 

Sett price 

Change 

Htfi 

Low 

EsL vol 

Open taL 

Sap 

91.45 

9185 

-018 

9184 

91X6 

0272 

40892 

Dec 

91.11 

91.05 

-015 

91X2 

9098 


46773 

Mar 

9075 

9084 

-018 

90.80 

90X1 

849 

12417 

Jun 

9020 

9013 

•015 

90X6 

9013 

143 

6798 

■ Ttn 

■ ■HMIU 

EURO SMB 

S FRAMC FUTURES (UFFQ SFrlm prints ri 10094 


Open 

Sort price 

Change 

t-flgh 

Low 

Eat ml 

Open RL 

Sep 

9584 

95X3 

-004 

95.70 

9588 

2622 

30084 

Dm 

9588 

9540 

-0X1 

9645 

9585 

450 

loose 

Mar 

94X7 

96X8 

-0X2 

ffi.14 

94X7 . 

583 

9188 

Jit 

94.70 

94.70 

- 

94.70 

9470 

100 

1312 

■ THREE MOfTTH ECU PUTUR&B (UFFE) Ecuim | 

potato D(1 OOtt 



Open 

Sett pries 

Change 

(Brit 

low 

EaL vri 

Open RL 

Sap 

84.00 

94X0 

-OXS 

94.09 

93X8 

688 

11873 

Dec 

8X73 

93.78 

-0X1 

9X80 

9X71 

419 

8147 

Mar 

9342 

9X45 

-0X1 

9380 

9X42 

288 

8707 

Jm 

B3X5 

8X07 

-003 

9X10 

9X04 

95 

353 


■ UTE ream tradsd on AFT 


e sta traW Mng 


Sh 

months 


Pd- 


One 


■ TimaEMOimiSMHOPOLLAngbfeaSImpolmaofltXHfr 
□pan Letea Change Mgh Low 

9427 0423 -0-03 8427 8421 

94.17 94.12 -025 84.17 94.11 

9323 8327 -025 8323 9324 


Sep 

Dec 


EsL ud Open bt. 

67.688 446243 

128221 413264 

73288 294274 


1 Franc 
Danteft Krona 

D-Mark. 
Dutch GuMor 

French Franc 

Pertuguare 


(taring 
Swta Franc 
Can. Oobar 
US Odor 
Krifan Ure 
Yon 

Asian SStag 

Short Hnn<Wi. 


6>a-S 
5i»-5 
B,'. - 4B 
5-4U 

5*2 -6^ 

15% - irt 

7h -7% 
5*g - 4% 
3%-rt 
rt-rt 

Aft • *14 
8-712 
2h-2u 
3%-3% 
re cal tor the 


rt 

- 5 

sft 

■5ft 

rt 

-rt 

5H 

-5ft 

6 - 

rt 

rt 

-rt 

6- 

rt 

rt 

-rt 

rt 

-6 

rt 

-8 

5 - 

4% 

5- 

4% 

5 - 

rt 

5 - 

4% 

rt- 

rt 

5- 

4ft 

SiV 

-5 

rt 

-5 

rt 

-rt 

rt- 

rt 

rt 

-rt 

rt 

■rt 

rt 

-rt 

rt 

-8% 

rt 

-6 

16 

- IS 

irt 

-is* 

irt 

-irt 

18% 

-12% 

12% ■ 

lift 

7V 

- 7 A 

7ft 

- 7*1 

8 - 

7H 

8ft 

-8 

8ft- 

8% 

5 - 

4% 

4& 

- 43 

rt 

-54 

S% 

-5% 

6ft- 

eft 

3ft 

-3ft 

4 r 

rt 

41+ 

-rt 

rt 

-41+ 

4%- 

rt 

rt 

- rt 

6- 

5% 

8ft 

-8ft 

r% 

-rt 

8A- 

7B 

4ft 

■Aft 

4A 

-4A 

4& 

-4ft 

5- 

4% 

5%- 

rt 

8 1 * 

-a 

8A 

-rt 

rt 

-rt 

rt 

-8% 

9% 

-9 

2>s 

- zlt 

2*1 

- rt 

rt 

-rt 

rt 

-rt 

2%- 

2ft 

3% 

• rt 


-rt 

rt 

-rt 

SA 

-Sit 

5ft- 

Sft 


■ US TREASURY Mi FUTimES JfeBI) $1m per 10036 


Jun 


Dec 


8527 


8522 

.9627 

84.70 


-024 


8528 


8527 

9429 


3,137 

1,149 

718 


52 

23.071 


M Open Mares! flgs. are hr p rad rar i day 

1 OCTtOlt* ftJFFD DMIm points of 100M 


US Drier and Ywl oOmw: iwo days' nodoo. 


■anarTM PWOW WfTUHSS ftlATf) 


Paris Interbank ritaed rata 


Piles 

Jui 

Aug 

Sep 

Dec 

Jui 

Aug 

Sap 

Dec 

9600 

010 

013 

017 

018 

nrw 

nrw 

012 

033 

9626 

002 

004 

007 

010 

0X2 

024 

0X7 

0X0 

9550 

0X1 

002 

0X3 

nrw 

046 

047 

048 

070 

EsL roL road, Oris 5272 

Puss 2«a 

PWrioon dsyTi oprai ka. Cob 20975+ Pun t3fl«6 



Dec 

Mar 

Jun 


Open Sett price Chongo 
94.33 8423 -021 

94.02 94.07 

83.70 83. 70 

33.45 83 & 


+ 0.02 

+004 

+ai2 


■ THREE MONTH! 


Doc 

Mar 

Jm 


Open Sett poet Change 
8421 -GO? 

94.11 -4X07 

8324 -029 

93.57 5354 -RIO 


9423 

04.13 


Hgh 

LOW 

ESL Wl 

Open Irt. 

94X7 

94X5 

18,600 

53X41 

04X2 

9XS4 

18X87 

41X&9 

93X1 

9X63 

13X05 

32X07 

8389 

93X6 

7X41 

24X05 

Sim pdrtaof 100% 



Hgh 

Low 

EsL vri 

Open M. 

94X3 

94X3 

150 

2505 

94.13 

94.12 

173 

1996 



0 

1054 

9X57 

9357 

25 

382 


HIAHCOPTIOIM (UI^SFrlm pofctao<100% 


Strike . 
Price 

S«P 

- CALLS - 
Deo 

Mar 

Sep 

— PUIS ™ 
Dec 

Mar 

9680 

025 

nat 

0X2 

0.12 

033 

084 

9575 

013 

013 

014 

0X5 

048 

081 

9000 

006 

007 

003 

043 

0X7 

1X0 

Eat voL total 

C«b 0 Piss 0 Proteus treys open tat, CMs 3M Pun 

1025 



Previous drn/m voU Cris SQ.72S Pros 34243. Pro*, trey's open M. CWs S47.12Z Puts 42S214 


UK INTEREST RATES 


LONDON HONEY RATES 

Jun 24 Over- 7 days 

mm* 


Ora 


Three Six 
months morths 


One 

yeer_ 


Interbank Starting 

rt-rt 

S^-A7t 

5-4ft 

6ft - 5ft 

rt-rt 

aft -rt 

Staring COt 



4ft -rt 

5A-5ft 

rt-rt 

5A-4JJ 

Traasuy SB® 

- 

- 

4«-4S 

4B-4B 

- 

- 

BenkBOa 

- 

- 

AH- 4S 

5 - 4ft 

rt - sft 

■ 

Local authority daps. 

rt-rt 

eft - 4ft 

5 - 4ft 

rt-rt 

rt -5ft 

rt - sft 

Discount Market dope 

rt-rt 

4% -4% 

■ 

- 

* 

" 

UK claartno bark base lancing rdta 6% per cart tan February X 1984 

Up M l 1-8 38 5-9 

month month muilhd months 

9-12 

months 


Carta of Tax dep. (E10020Q 1*z 4 rt rt 3»j 

Carta ri Tax dso. indra CIOOLODO Is i< 2 Po. DopodB vMMHvn tor cadi lipc. 

Am. tandtr ran ri dtaoowa ajnoopc. ECQD tod rotai Sdg. Export Rninca. Udro ro> dqr IMay 31 . 
IBM. Apaad HU lor period Jiai 29 . 19 B 4 to Jri Sfi, 1004 , Schwnra III B 4 IPO. Retaranca raaetor 
period Apr 30 . ISM re Mar 31 . i 9 B 4 . 8 choii«slY 6 W(i 22 a>c.F 1 nsnco Hour* Bare Rale Wipe bora 
An 1. IBM 

RmjRSBOJFFE] SS00200 prime of IOOK 


Open 

Sett price 

Change 

Hgh 

LOW 

EsL voi 

Open M. 

94X8 

94X3 

-007 

94X8 

94XB 

11083 

108147 

8X78 

9X71 

-014 

9X79 

8X68 

28164 

150837 

9X11 

9X01 

-015 

9X11 

92X9 

7657 

05339 

9X44 

92X8 

-016 

9X44 

92X4 

3034 

49267 


Sap 

Dec 


Jm 

Traded on APT. Al Open kusrari las. aw lor prrataais day. 

■ SHORT STBMJIC OPtlOMB 8-IFR9 ES00200 prirda of IQtHt 

Stria 
Price 


CALLS - 
Deo 

Mar 

Sep 

— PUTS - 
Dae 

Mar 

014 

O10 

012 

0X8 

1X4 

008 

006 

0X5 

087 

1X5 

004 

003 

044 

1X8 

1.77 


Sep 

•42S 020 

9400 028 

9475 022 

Eat voL arer. CWk S703 Pure 3444. Praha dayia open ta_ Cab 1M277 Pros 17437# 


BASE LENDING RATES 


Adam & Ctarpany . — 525 

Med That Bar* .-225 

ABBarlr- — 925 

•Henry Ansbocher 525 

BarkofBorada 525 

Bonn Btao Vlzcaye- 82) 
Baric of C)ipna..^.«u US 

Bnfcri ketand — 525 

BarkrilnrM 525 

BankofScmnd 525 

BarStys Bank 52S 

MEkriMUEoH... S2E 
HMM 1 Shipley 6 Co LM 225 
CL Baric Nederland... 525 

CEw*NA_ -525 

OydasdaloBeric 825 

The OMpetafim Baric. 925 

Cobs & CD -..-.-.525 

OaS Lyonnais sa 

Cyprus nearer Bank -825 


% 

Duran Lireoio 525 

Bonr Baric Unfed-. 625 
Rranddl Gen Bank™ 8 
■Robert RwringA Co _525 

Gtobank — — 525 

•GrinnanMrirei 525 

Harib Baric AG Zurich. 525 

•Hontota Boric 52S 

HetMM&agnbitfBkS2S 

•HfrSamuaL 525 

GMoara&Cn 525 

Hongkong 5 Shanghai - 525 

Jcdsi Hodge Bw4t. 525 

•Leopold JoaephS Sera 525 

UbydaBarir -525 

Uetfm Baric Lid 625 

Mttand Baric 52 S 

■Mount Banking 6 

NJ W teUi ifr Wt Bf 525 

525 


■ Rratrer^a Grerartre 
Caqwioon Lbrfed la no 
huger aohniaadw 
a banking batuian. 8 
Royal Be ofSooMnd- 525 
■SmUiS Wknm Secs . 526 

TSB 525 

■UrfedBkriKireejf- 525 
Unky Tnal Baric Pic _ 525 

WMm Tori 62S 

VMreway Lakfear 525 
YkAtHraBank 525 

• Members ol British 
Uorttfiarrl Banking ft 
Securities Houses 
Assodadon 

* biadtriniainBon 



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j 










FINANCIAL TIMES WEEKEND JUNE 23/JUNE 76-199* 


LONDON STOCK EXCHANGE; Dealings 


. * ^ 


Dotaifa of business done shown below have been taken with consent 
from last 'Thursday's Stock Exchange Official List and should not be 
reproduced without permission. 

Details relate to those securities not included in the FT Share information 

Services. 

Unless otherwise Indicated prices are in penes. The prices are those at 
which the business was done in the 24 hous up to 5 pm on Thursday and 
settled through the Stock Exchange Talisman system, they are not in order of 
execution but in escending order which denotes the day's highest and lowest 
dealings. 

For these securities in which no business was recorded In Thmda/a 
Official List the latest recorded business In the four previous days is given 
with the relevant date. 

Rule 5350 stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Republic of Ireland Ltd. 

$ Bargains at special prices. $ Bargains done the previous day. 


British Funds, etc 

Tnmy 13V* Stir 200003 - £123% 123% 


Rank OigfnMton PLC 8%* Bda 2000 » £ 
Vtoj-£94%(2Ua94) 

Hedfand CapM PLC 7 V* Qnv Bda 


BaJMnuar 10%M Stic 2065 - C112JJ 


axKiertioooftioooq - eioi tzzje&q 
Robert Renting MAnnos Id ttt* tap 
Subord Gtd N» [Br £ V») - £83 (214804) 


Corporation and County 
Stocks 


SubCUd Gtd MU [Br £ VW) - £83 (214804) 
Rafe-Roye* FLO 11** NTs 1000 Or 
El 000110000) - El 0831 (22j*04) 


London Gout/ 212* Cana Stic 1B20(or >M 

“ C2S 

HsdrUsn Crap 4* Cm Dob Stic (rrd - 040 
BrMo*CkyaQ11%* Red Stir 2008- Elis 
(174*04) 

Laoda Oorp 3* Dab Stic 1Q27for after) - £30 

CZlJaOfl 

ManchestorfCtor cfl 11.5* Red Stic 2007 - 

eiis% 


RottacNkk ComtioBiton Rnpjjiaa* Pm p 
Sutorf GM Nte (BrtVMous) - EB2% 
Royal Bor* of Scobrare PUS 8%M Bda 


BOC Group PtC 12%* Uns Ln Stic 2013/17 
-£122C22J*B4) 

era PU3 ADR {*.1) - $22* (22JrtM) 
art of MmdfQovma- a Oo oQ IMtt NCP 
Stic Sr* A £1 A a UquktoHarr . £11% 
(21JMM) 

Bertie of IratandfQowmar 4 Co 08 Untts NCR 
Stic SraA Ir£f8lr£9 Lkptittoflrai - l£ll% 
(20*04) 

Bmr Homes ftnup PLC Old 10p - 113 8 
22(Z24e94) 

Bodays PLC ADR (4.-1) - KOLSSt 
Bodays Bo* PLC 12* (Jha Cap La Stic 
2010 - £118 

Barclay* Bank PLC IS* Una Cap Ln Stic 
aooz/or - Eiaav 

Barton Group HJC725p(N«} Cnv Red Prf 

2fip - 82 6 (174*04) 

Botion Group PLC 11 J5p Cum Red Pit 

Z005 1 0p - 106 (224*04) 

Baring* PLC 8* Cun 2nd Prf £1 - 97*2 
(224*94) 

Bratogs PLC bV* Non-Cun ftf £1 -115>2 
0JoS4) 

BranUo Exploration UI CM HUH - 2S 

ezuaq 

Bwr 3 Wteac* Arnold Trust PLC CM 25p - 
6(0 

Bast PLC ADR CE1) - SISV (214*04) 

Baas PLC 10%K Deb Stic 2010 - £1 10 


UK Public Boards 


Oydeport UJ 3* kid Stic - £30 pOJaM) 

Port of Lnndon Authority 3* Port of London 
AS* 28/89 -OT% (?14a94) 


Foreign Stocks, Bonds, etc- 
(coupons payable in London) 


(21js94) 

Abbey Nationd Starting Capital PLC10%% 
Sctiwa GW Beta 2002 far C VO) - £103% 
Abbey National Treaflray Sow PLC TV* 
GW Ms 1888 (Br £ VO) - £988 (21 JeS4) 
Abbey National Tteasray Sens PLC 8* Gtd 
Bda 2003 (BrCVo) -£9lH 2% 3 
Aoar taoorpraatod 4* fids 200l(BfSl00001 - 
$174 

AiyjS Group PLC Sly* Bds 2000(Br£Va») - 

ASDA Group PLC 9%* Bda 
2oo2pi£iooo&iaoaa) - mil poj*o4) 
ASIA Group PLC 10%* Bde 

2010(BfE10000SilOOOOa) - ei03£ (204*94) 

BP America mo B%* Gtd Nts 1908 (Br E 
Vta) - £102% poJaW) 

Barclay* Bonk PLC 65* rta aXWfBrfYari- 
oua) - £82% 3% 

Barclays Baric PLC B%* Bda 1000 (Br 

frioooosiooooq) - Fmoof 

Barclays Baric PLC 0375* Undated Subond 
NTs - £96% £2JeB4) 

Bacteya Bra* PLC 10V* Sn Sub Sds 
18B7tBr£1DOO&1DOOO) - £104.15 (214*84) 
Barclays Bank PLC 12V* Senior Subord 
Bds 1S97(BI£Wr) - £111.825 f7IJe94) 
Barinns PLC 9%K Perp Subord Ms (BrfVari- 
outi-SXS 

Bradford & Bingley Butidfog SocMyCoOraad 
FtaHtaNts 2003(Ra|) Mctt£100CQ - £95% 
95% (224e94) 

Bradford & Bingley Buidtag SodatyCotiared 
RtORto Nts 2003 (Br£v»)- £94(224*84) 
British Gas PLC 12%* Bds 1B85 
(te£100U10000| - £104 (214*94) 

British Gas PLC 7%N Nts 19B7(Br£Vto}- 
£08V fpn reei) 

British Gas PLC 7%* Bda 2000 (Br £ Vra) - 
295V V 

British Gaa PLC 10%* Bda 2001 (Br 
£1000,100008100000) - £1058 (Z2JeB4) 
SMMh Gaa PLC 8lf* Brfo 2003 (RrE Via) - 
£90% .7 

British Gaa PtC B%* Bda 2008 (Rr £ Ver) - 
£06% lit 

Brifiah Tataoranmiinleatfona PLC 2ara Cpn 
Bda 2000(a£1000A1000q - £81 % 
EMMiTatooommunkarifona PLC 7%* Bda 
2003 (Br £ Va) - E87V p2Jo94) 

British TriecommuracaOcna PLC 12%* Bda 
2006 - £122% (17Ja94) 

Bcratei CaabW CapMJeraay) LdS%* Cnv 
Cap Bda 2006 Pag £1000)- £155% %8 
Bumdi Castrri CaptatiJarsey) Ld 9%* Crw 
Cra> B«fo 2009®rfsoaa50ooo) - ci»% 
C21JaB4) 

CSH) Finance BV OU Subrad FUb Rfo Nts 
2003 (Br S Var) - S36% 97% (21 JaB4) 

Cabia & Whefoaa M Fbranca BV 1D%* Gtd 
Bda 2002 (Br £100008100000) - £102% 
plJaSK) 

Commercial Union PLC 10V* Gtd Bda 2002 
Pr £ Vta) - £104 (?1 JB94) 

DrBy Mao 8 Ganarai Thtal PtC BV* Exdi 
Bda 2006 (B£1000&500Q'E148V 


Ropti Brt of Scotland PLC 105* Subord 
Sda2O13 0r£Vte)-£1O1%2% (S 1 MW 

ftoya Bmkot Scotiand PLC 10%* Suboid 

Be* iare priasoaosaBooo) - eiosv 

n7Ja04) 

Roy* Insurance HWg» PLC 0%H Suboid 
Bda 2003 (Br £ VW) - £96% \ {22Ja04) 
Sdnmxay (LNClwraial MmetiOLd 
BVKCmCapBds 2005(Br £60008100000) - 
£130(2Ua84 

Setom Trent PLC 11%N Bds 2001 (Br 
£60008100000) - £10851 (21JaM 
SmtttMna Baacham CapM PLC 8%K Gtd 
Ms 1SS8 (Br £ VW) - E97 % (21JotM) 
Sodeta Gananta 7 J7S* Pwp Subord Ms 
(Br £ Vra) - fsr% % 

South West Water PLC 10%K Bds 2012 (Br 

nooao8iooaoGi - tsasi, pomm) 
Southern Bsctric PLC 10%* Bda 2002 (Br 
EMn) - £104% 

SandenOOngdam oQ 11%* Bds 1B85(Br 
aoaa) - £103% pOJeS^ 

Tarmac Rnancs (Jersey) Ld 8%M Cnv Cap 
Bde 2006 (Reg £1000)- £103% f22J*B4) 
Tarmac Fi na nce (Jersey) Ld 0%K Cnv Op 


801(1875 Of >iq -£B4% (22JaB4) 
loddbioton Qwp PIC S%* Uis Ln Stic 


Bradford & Bfogley BuMng SodabrilV* 
Perm Int Beralng She £10000 - £111% 


Bds 2008(Br E500085000G) - £101% 
TraaSLyfo MHn PlCITsts&Lyla PLC OV* 
TSLWhGdBds 2001(0) WAttaTUPLC - 
£82<J> 

Tasco PLC 8%M Bda 2083(9r£1te4(PyP4 - 
£S3V % C2JoB4) 

Taaep PLC 10%% Bde 2002 0r £Ma) - £104 
Tosco Capital Ld fl% Cnv C*i Bds 20O3(Hag 
£T) - £118 8 % J31 
Tasco Capital Ld 9* Cm Cap Bds 
2005(SK50a081000q) - £111% (22Je9fl 
Thames WWer PLC S%96 CnvSutxxiBda 
2OOB(Bi£S0OOS50000) - £118% 

31 bitranralonal BV 7V* GW Bds 2003 (Br £ 
VW)- £88% 

Tokyo Boctric PDW Co Inc 7%M Nte IBM 
(Sr £ Vad - £90% 

ling Ho Seas) Entrap ri st Ctxp 4* Bds 
2001£rS1000Q) - $114 flTJeSM) 

U-Mkig Marina Trartepoit CorporBUoi1%* 
Bda 200i(Rag In Mutt $100Q) - S82 
fWJ«90 

IHew PLC 7%W Nts 1998 (Br £ Vo] - 
£97% (17Ja04) 

United Kkigdom 7%N Bds 2002(Br$VH) - 
59B%(22Je94) 

Urttad Kingdom 8%* Traasuy Nts 24/1/96 
(B- ECU Var) - Ed 01.18 (I7Ja04» 
VUMumB/U Group PLC 9* Parp Subord 
NBI PfcpNtaBrH - 2B2J 3% PZMMf 
Walstl Water UtBDas Finance PLC 7%* GW 
Bds 2004 (BcEVatouaJ - E84A (2OJa0fl 
Wootwtah BulKOnc Society 7* Nts 1996 (Br 
£Vto)-£99%£2Js94) 

Woohrich BrikSng Society io%* Subnd 
Ma 2017 (Br £ VW) - £98% (22Ja9fl 
GMACAustrMfo Ffa*nc4 Ld SASOn 72S* 
Nta 1871 MM - $A»1 V 82% 0 JaB4) 
SBA8$C10n Rta Rta Nts 22712785 - 
EB5JI75 86% (17JeB4} 

Stabs Bratit of New Sooth WatasUl 9* Bda 
2002 (Br $A Var) - SA93% 84% (22Ja94) 
SwedenifOngdani oQ ECOOra 7%K Nta 3/12/ 
97-Q»(20JaBG 

Swedua(JGnodam oQ $C200m 8%K Debt 
Instr 29/12(80 - $C84% 04% C22JaB4 


Bristol 3 wear BuMrig Society 13%W Penn 
M Baafog Shs £1000 - £124% V 


BriUnris BuHdng Society 13* Parra Int 
Bearing Shs £1000 - £122% % V 
British Airways PLC ADR (1R1) • 381 % % 
British Alcan AkanHum PLC 10%% Dab Stk 
2011 -£101 CHJs&Q 
British-Amsrican Tobacco Co Ld B* 2nd 
Cum ftt Stk £1 - 84 (21Je94j 
British Petroleum Co PIC B* Cura « Pit £1 
-82 

Brttidi Steal PLC AOR (T0C1) - $20% V 
British Sugar-PLD 1G%* Red Dab Stk 2013 


- Cl 13 (21Je04) 

Brtdon Estate PU3 8 jBO% let Mtg Dab Stic 
2028 - £86% (21Ja84) 

Britton Eatata PLC 10%* Ul Mtg Dab Stic 
2012 - £108% (21JeB4) 

Broadstonw HMps PLC 42% (Rmly 8*) 

Cum PH £1 - 68% (2Ue8q 
Busting.) & Co PLC Ord Shs 5p - S3 
(17JeB4) 

BulmeriRPJXdgs nC 8%* 2nd Gum Pif 
£1 - 105 OIJMM) 

Bitimai(HP)Wdaa PLC B%* Cun Prt El - 
112 C71JO04 

Bund PLOT* Cnv Una Ln Stic 85/07 - £106 
Burnish Castro! PlC 7%% Cum Rad PA £1 - 
70 1 f?7 ''ri**) 

Bramah Caabrti PLC 8* CUm Pirf £1 - 77 
(22JaS4) 

Bumdane femahnants PLC IS* Una Ln Stic 
2007/12 - £117 f17Js94) 

Brawn Group PLC 8* Cnv Una Ln Stk 1098/ 
2001- CM 

Buna Mining PLC Wta W Sub tar Ord - 0% 
{22JS94] 

Butts Mring PLC 10* pisQ Onv Cum Rad 
Prf 1894 10p-3(22Ja84 
CBSC Ld EqUty RUTO - 210 (I7JaB4 
Caffyns PLC 10* Cun Prf £1 -118(22Ja04) 
CaHtomla Enarjjy Cb Inc Sba of Com Stk 
$00675 - £1081 47434> 10083584$ 

C a n hr Idtf a Water Co Cons Ord Stk -£8400 
tl7JaB$ 

Carfata Group PLC 438* (NaO Rad Cnv Pd 
1988 £1 -70 

Carfton Corrmmicatione PLC ADR£n)- 

$25%£2Ja04) 

CabsrpBar Inc Shs of Com Stic $1 - $104% 
(2Ue94) 

ChsKsnham « Gtaucmtar BuU Sob 11 V* 
Perm H Baartng Sla £80000 - £112% % 

V (22J094) 

CM U rigtonCoipaistionPLCWsiTsrt i torafo 
for CM - 1%9 

Chtengton Corporation PIC 0%* Cum Rad 
Prf £1 -00 

CMBngfou Corporation PLC 8* Crar Una Ln 
Stk 1888 - £83 (17Ja04) 

CBy SBa Eshdas PLC 5£5K Cmr Cum Rad 
PrfCI -67POJO04) 

OayWtha PLC 8^* Suboid Cmr Una La Stic 
2000/01 - £90 

Oevstand Place Hokfings PLC 9K Red □*> 
Stic 2000 - £85 (l7JeB4) 

CoOta Ffotans PLC 4%% Uns Ln Btk 2002AJ7 
-E84f17Ja94) 

Coats ntions PIC «V* Uns Ln Stic 2002/07 

-£80% pn. » eQa} 

Coeta VlysBa RC 40* Cum Prftl -67 
Coh«i(AJ & Cb PLC NoaV ’A' Onl 2(fo - 

460 E0JaB4) 

Commarchti Union PLC 8%N Cum hd Prf 
£1-104%% 

QanmemW Untan PLC 8%* Cun bid P»f 
£1 - 104% % 5 % 

Cooperative Bank RC 025* Non-Cum kid 
PtfCI - 100% (22JaB4) 

Coopw (Frederick) PLC (L5p Q4oi) cm Rod 
Cran Pto Prf lOp - S3 (21Jo9^ 

Coratautda PIC 6* Cran Red 2nd Prf £1 - 
63% (2UM4) 

Coratirtfo PLC 6%* lln* Ln Stic 84/96 - 
£96% (22Je94) 

Ooutarids PLC 7%H Una Ln Stk 200IVDO - 
£B7%4> 

CoratsOda Oattung Brands Ld 7>2% Cun 
Prf Stic £1 - 78 p 

Comitty BUUfog SadMy 12%% Perm Intsr- 
m Boating Sira £1000 - £113 (2UsB^ 
Crtne Europe Ld 6%K Cum IVT Stic £1 - 48 
Dsfly Ms! &Germl Trust PLC CM 50p- 
£12% 13.16 

Dripaly PLC 486* Cum Prt £1 - 70 (21Je94) 
Dabarhams PIC 7 V* Una Ln Stic 2O028J7 - 
CBS purto 

Dotta PLC 3.18% Oum 2nd Prf £1 - 48 
(2O>fo04) 

Datta PLC 10VM D«b Stk 8S«I - ei02% 
Dmrtwra PLC CM Itfo - 72 f17Je04) 

Dunlap Ptantntitme Ld 6* Cran Prf El - 82 
(21JB94) 

SystWImUacfon) nC Ord 25p - 844 
(22Je84) 

Emsaa PLC 62ap(N«h Cm Cun Red Prt 5p 
-67% 


Sterling Issues by Overseas 
Borrowers 


OsranartigGngdom of) B%% Nts 1888 Or £ 
W)-294%(22Je94) 


Danmart^Kfogdom oQ 11%* Bda 1884 - 
£101%(17J094) 

Daptn Finance N.V. 7%* Gtd Bds 2003 (Br£ 
Var) - £84 p1Js04) 

Eaafom Bectridty PLC 8%% Bda 2004(B>E 
Vtira) - ES2% (2iue94) 

Bf Enterprise Rmnoe PLC 8%* GW Both 
Bds 2oos(a£sooo&ioooaa) - £se%4> 7$ 
Par Eastern Taw tie Ld 4* Bds 
2008(BrSlOOOO) - $110 (17J«94) 
Hrtandfffopublte of) 0%% Nta 1887 (Br£ VU) 
- £103% G0Ja941 
FWandfRopihtic ol) 10%K Bde 
20atKBr£1000&100oa) - £1054 
FMendpepubio of) 10%* Bda 1388 - 
£104n ( Tfl lW f) 

O aa ui a uud Export Finance Carp PLC S%% 
Gtd Bde 2008 0r £ VW) - £100% C22J084) 
GUnrwaa PIC 7%% Nta 1897 (Br £ Mar) - 
897% 

GUnnaBB Ftamcs BV 9%* GW Nta 
1093(a$CA 000110000) - 8080% 09% 
GUhness Rnanoa BV 12* Gtd Nta 

1B96®rfn 00031 0000) - £106% P»Je94) 

Halfax Brfdfog SocWy B%* Bde 2004 


Asian Development Bat* 10% * In 38c 
2009(Rad - £11058 (17MH) 

CradR Fonder De Franca 
10%KGtdSarinSa2011.12.13.149tag) - 

EI10H (2Us94) 

Eaton fmrace NV 12%% Utis Ln Stir 
2014(R#fl) - £T18%$ 

Eu rop ee i Inveatmem Baric 8* Ln Stic 2001 
(Rag) -£100% % 

B h opaan k nra at m u t Bartic9%* Ln Stk 
2009 - £104% 5% 

Etsopaan (nvaatmant Bade 10%W Ln Stk 
2004<Reg) - £107% (21Ja94) 

European k w e aim a m Bank 10% 94 Ln Stk 
2004(Br ESOOO) - £10944 (!7Jtefi 
Eumpaon Investment Bank 11* Ln Stk 
2DQ2(Red - £110% (22Je8g 
Gfonttra (Goirammeniot) 11%* Ln Stk 2008 
(Re® - £114% pOJoB^ 

Hydro-Ouebec 12JS* Ln Stic 2015 - £127% 
(22Ja04) 

IctteidlBapifoae crt) 14%% Ln Stic 2018 - 
£142% 

Mamatioiati Bonk for Roc & Dev 9%* Ln 
Stic 201 OfResO -8106J77 t17Je04) 

New Zeeland 11 %* Stic 200B(Re(9 -8116% 
(22Jo0R 

Patiofooa Mexlcanoe 14%* Ui Stk 2006 - 
£12DpOM4) 

POrtugailPep d) 8* Ln Stk 2016(80 - £88% 
f17Je04) 

Sp^Mn^tarn^ 11%* Ln Stic 2010(Raa) - 

SwedenOQngdam oQ 0%% Ln fttk 2014|Rad 
-£103li (22Je94) 

SwadanOOnsctom oQ 13J* Ln Stic 
2910(RaB) - £183.15 (21Je94) 


(BTE1 000.10000, 100000I- EB2* (l7Ja0q 

HsBfax Bukfoig Soclaty 7%« Nta 1B88 (Br £ 
V»)-E97% 

Hadfox BukBng Sodaty 8%K Nta 
1896(BrS1000tk1000q -$102% (2 Ub94) 

HaOUx BuOdno Sodaty 10%% Ma 
1997BcE1 000510000) - £105% t22Je9<) 

Hdttax BuMng Sodaty Colored FHg Rta Ma 
2003 (Br E Var) - £94% R7Ja04) 

Hanson PLC B%* Cnv Subord 2008 (Eh 
EVar) -£lQ7 

Mckaon CapM Ut 7* Cm Gap Bde 2004 
5*01-129% 

imperial Chamkral mdradrie* PLC ION Bds 


Listed Companies(Bxcluding 
Investment Trusts) 


20030^1000810000)- eiOl % GQJeftq 
Intamatlanal Boric for Rao 8 Dm 9%K Bda 
8007 (Brfaooo) - £100% (21JOB4) 
Wamatlonal Bat* far Rac 6 Dm 10%M Nta 
1989 (*£5000) - £105% (2QJdM) 
International Bank far Rac 3 Dm 10%% Mg 
1964Q3r£l 00081 oooq) - £10087 (21Ja04) 
Intranaticnd Bank tor Rac 3 Dm 11%N Mm 
2001 (8f£1 000510000) - Elfflaa (22JB94) 
HyfRapufafco0 10%* Bda 2014 
(Br£10000&50000) - £108% 

Japan Fin Carp lor Munldpil Ent 7%« Gtd 
Bds 2004fBrS500Q,10000q) - $B0.12>|) 
Knal Bactrio Pwaer Co Inc 7%M Nta 1888 
<Br£Vra)-£Bfl% 

IQwahu Ba e ato Poawr Co Inc 8K Nta 1897 
(Brevrat-es9%(i7je94) 

Ladbroke Group PLC 8%N Bda 2003 (3r E 


VU) - £90% (21 JeBfl 
Land Smutthe PLC 9%* Cm Bda 2004 
(Br£S0aOS50000)-£110%% 

Lmdj Rannmam Bunang Sodaty 7%H Me 

»«m»»w~ 0-£8S%6 MBnaonsSiVaBl sum* 

“Sgfig.lSSZMa reox a, _ AabDdot^^ Ureln 


API GMup PLC 3A5* Cun Prf £1 -55 

(22Je04 

Abradaen That PLC Wig to aub for CM - 53 
(17Je94) 

Abanforai Tnat PlC A Wta to Suh for Ord - 

5Sp2JaB4) 

Aetna Mhmdan Growth FUneyfoymanlLd 
OnlSOCI -$11% tZIJefiR 
Albort FWrar Group PLC ADR ClQri) - $8% 

POJiOl) 

Atoaon Group PLC 825p ffilaQ Cm Cum Rad 

Prf lOp -49 51 CZ2JS94) 

ANedUndon Propratiaa PLC 1D%* 1st Mtg 
Deb Stic 2025- £105% RIJeSM) 
AS^Lyone PLC ADR (1T1) - S8 jB 9 p7Ue9^ 
ASattLyons PLC 5%K Cran Prf £1 - 57 
C20JS94} 

ABad-Lyone PLC 7%* Une Ln Stic 93/88 - 

ABad-Lyone Fforaidal Service* PLC8%K 
G«dCmSuhniTg di 2tXB RagMdBEiooo - 
£107 % (214a0<) 

Atinatt London Prapmrttn PLC 10 %* let 
M|g Dab Stk 84/99 - £100 f17Jo04) 

Ahta PLC UK Cm Cran NonWtg Red Prf 
£1-71-96223(201094) 

Amrafoan Brands Inc She of Com Stk 83.125 
-S33J (22Ja04) 

Aiyo-Eattem Pl an t a ti ra ra PLC 12%* Una 


Ertatprlae 01 PLC 11%H Una Ln Stic 2018 - 

£116%% 

Bfoasanf-UXTalefandkllebalagaOSar 
BffratfSKIO - 3904 SK388% 7 8 % 9 90 
901 

Eaawc and Sutkflc Wraar PLC 4% Parp Deb 
Stk- £43 

Gao Dtaney 8CA. 9ra RR5 (DepoeOray 
Reodpra)- 145 50 2 5 8 8023345 70 
8025880 

Baa Disney S.CA. Shi FR5 (Br)- FR14445 
&9 ST 8 J03V.35.SBJB -86 7.1^8 300 
% .65 te8 JX 804 .1 

Euroumef PLC/Euratunnal SA Urtts fl EPIC 
CW«p81 ESA FRIO) (Br) • FR2SJJ3 

EdWraiMl nC/EuxAanW SA UnltB 
(gwmrn foacribed) - FRZ4J7 J39 JB JOS 
% ‘ 5-11i%3J%VJ766 

.013/03% 

Euralunnal PLC/Eraotunml SA FMr Wta 
(Skovam bracribec? - £0.1355 (20Je9« 

Bfjrtls PLC Vftrrartis to ub for 8ha - 22% 


Nteongl Wtittttatar Sartk PLC 11%* ur*. 

SuhMs CIOOOPw to PHRaB - £108 
Nrtonai vnantanr Bank PLC 11%* Und- 
g*te£1000pmhiPri)Br ; ElO4% 

Nteomride BbUfog Society 8%M Suboid 
te8KnBpra*D-OBV4T 
Nraak Hydro AS 9%% Nts 2003 fir 
£1 0008! WM). £100(214094) 

"W-’&iSf’S""" 818 '* 

Pforaon PLC 10%* Bda 

ncnwaiooooq. £93525 1 

OflOQBfiOOte)' - £117 ^ 


AriWirrarad SecratttfHkfta! PLC 3* Cm Cran 
RBdP«E1-7807J*Bfl 
Auumaled Secutty(l«dB4 PLC 8* Cm Cran 
RedfMCI -81 2{Z2JeW) 

AutenttiM Products PLC fi* Cum Prf £1 - 
107 

BAT Industries PLC AflR (2rl) - $11,645 
.785 0 

EBA Group PLC 10* Deb Stic 88/94 - £89% 
(17Jafi4) 

BET PLC ADR (4.1) - *6%* -9<> 

BU Grorw PlC 48p (Net) Cm Own Rad Prt 
20p-4S 

SOC Group PLC 455* Cran Prt £1 -72 
BOCdnti) PLC 2^* Cran 2nd Prf £i -48 
BOC Group PLC aj*Oan 2nd ftfCi -55 


Ewator Group PLC 11.5* Cum Prt £1 - 
110 

Fti Owp PLC 7.7* Cm cum Rad Prf 93/39 

£1 - 106 pUoG4) 

Moon Hokttags PLC Ord Sp - 123 QOJaM 
Aoewitetihg Money Raid LdOnj 


FT-SE ACTUARIES INDICES 

Mld 250 3S0 indices aid the 

** catetiated ^ Ttift intemafional 

SJi r SSJ?? d 2 n 81x1 R8 P ublte ^ | ra»arid UraHodL 

2E5J Actuaries - ° ^ Limited 109% MM«S 


irrTIS , 7'® E 10Q - ^-SE Mid 250 and FT-SE Actuates H5Q bifoH th* 


*A1tL7S5(i7J084) 

«"5^Awrai8 EMNM np T1* 1st hRg 
Dob Stk 2014 - £118% 7% * H 4 % 
HJOtagoCrapetanStit^-W 

R« forajm ftnw foe are 01 Com Stic $001 - 
S7.34975 (20Je94J 

FW National Btfldng SoeWy 11 %* Pam 
te Bearing Shs £10000 - £8B% 8 (21 MSj 
m National Ftnanca Oem PL£ 7* Cm 
Cum Rod Prt £1- 138 (21Js9q 
BapiP PLC ADH (dfl) -$8%j> 

Pofoeg ftaup PLC Old 5p - 44 8 (17Ja94 
Porto PLC 9.1* Uns Ln 8ti( 95/2000 - £88 
t17J«94) 

GKN PLC ADR (Irt) • S8L12 GOJa84) 

GN Gnat Nontic Ld Bhs DKioo - DKS44 
OAHdga) PLC lti%* 2nd Cun Prt El - 84 
gtM4) 

GLT.CMe Growth Fund Ld Ord S0JJ1 -£29 
Genam Accident PLC 7%* Cum tod Prt £1 
-98% 

GarW /VMdrt PLC 8%K Cum Ind Pif £1 
* 108% % 12%$ 

General Baehio Oo PLC ADR fftfl - $4j» 
SMWrer Hfogg PLC Od Cop 25p - 178 
BUaBfl 

QUra 3 Drawy PLC OKMOp - B8 (21 JeM 
atran Group Ld6%* Une Ln Btk 83«6 60p 

- 48% (1TJO04) 

Gton Qw Ld 7%« Uto Ln Stic 8&B5 50p 

•48(22JaB4) 

ChmmdMarnationei PLC7%* Cum Prt £1 
-73(21409^ 

a 2TS 1 f*® 10, »* 6 «* s* 

04/n - css in (Z2je»n 

Cnnd MatrepoBrai PLC 4%* Cum Prfci - 
60(21 Je94) 

Grand Metrapstan PlC 6%* Gum Prf £1 - 

88% (174*04) 


Greanafia Group PLC 9* Cran Prf £1 - 105 

pOtoBi) 

Graamis Goup PLC 8% fortune Ln Stic - 
£83% P2J*B4) 

Oraantoa OrCTh PLC P%* md Une Ln Stir - 
£85 (2QJ*04) 

Grararte Qmp PLC 7* cm Subord Bds 
2003 (Rod - El 05% 8% 3 % 

GuKN Property Co PLC 8* Cbm W Cl * 


Ml Property Co PLC 8* Cbm Prt E 

naas HC ADR prt) - $34% 

C Hklga PLC (M 3H1Q (Hong Kong 
ra) - $11.871525 11 C83S71 $HB4-1 J 


Rag) • $11 CnS2S 11 C83S71 $HB4-1 -3 3 
J5^X43%%jBJ^«3^%JIJ 
JS48 JHB5 8858 5.183 J367 J56 J080BS 


BBC Hdga PLC 11 SB* Subord Bde 2002 
peg) - £108 7% 8 % - 


KBSax BUkting Sodaty 8%* Pm W Bara- 
fog Ste 850000- £87% % 

HaBftot BUWfog 8wfo«y «% Pbrm haBer^ 
fog Sta £1 m ssmn - £118% &***! 
Hation Hokflngs PLC CM 5p - 83 5 
PLC 11* Cran Pit CT - 144 
afttamM) Group PLC5%* Cran W 


Base PLC 4%M Uns in Stk 82/07 - E87 

(214*94) 

Base PLC 7%* Una Ln Stic 82877 - £87% 
£2Je94) 

Bnaa fomahnanta PLC 7%W Uns Ln Stk 82/ 
97 - £98% (22Je04) 

Borgaoen d-yA3 *B* Non Vtg Sha NK2E - 
NK1G5 .16 % .7 688 8 
Ofonfogha m MkNhlraa BuSdlng Soc B%* 
Perm fot Braving Sha £1000 - £88 % 
R fori r tviaro r Biterto l nmanr Carp 8ha Com 
Stk $0.10 - 808% (2TJS94) 

Bhw Qrda LndusUM PLC ADR (id) - $44 
Bkw Ctrcfo foduaWM PLC 8%K Lfoa Ln 


Perm Int Berafog Sha £10000 - £111% 
(214004 

Bradford & Bfoglay Buhting SoctotyUH 
Farm fot Bearing Sna £10000 - £125 % 
Brant WUkar Group PLC Wto to Stfo tor OnJ 
-l%B14o84) 

Brant Wrdrar Groito PLC 88* Art Non-Cun 
Cm Rad 2007/10 £1 - 2%4> 

Brfcfon PLC 7* PW OrdfftanCum)SOp - 38 
Bridon PLC 10%K Dab Stic 81AM - £98% 
(224004) 

Brians Wbtra PLC 8%* Cun fort Prf £1 - 
108 (2BM84) 


4aactina Stratogfo HWgs Ld Ord $0C5 (Hong 

Kong Raobtra) - $H29^748 .72432 .7744 
^2475-624781 .875009.830344 
Johnson Group Cfoanras PLC 7 Jp (N»0 O" 
Com Bad Prf lOp - 142 
Jaoa^StroudfMga) PtC 10* Cun Prt £1 - 
130 (224*84) 

Kelsey todoatrtae PLC li%* Cum Prt £1 - 
115 8 (204*04) 

Kbra a -Europa Fund Ld SrikHXt to Br) SQ.10 
(Cpn 7) -33815(174*84) 

Kvaamar AC. Prae A Sha NK1260 - NK2M 
1% , 
Lodbrofoa Group PLC ADR (irt) - $245 2% 
Lament tedga PLC 10* 3rd Cura Prf £1 - 
■mp&we*) 

Land Securities PIC BH lat MW Dab Stic 86/ 
2001- £101 (224*4) 

LASMO PIC 10%M Deb Stk 2008 - CflXA 
LatNMB Plaflnum Mnea Ld CM Httei - 40 7 
52(224*04 


Loads 3 Hotbeck Srikting Society 13%% 
Penn for Be aring She £1000 - £123% 4 


Perm fot Berafog She £1000 - £123% 4 
Leeds Par m raient Bulrang Sodaty 13%% 
Pson tat Berafog £50000 - £131 % 
LewtafioratiPrainerahW PLC SM Cran Prt Stic 
£1-54 

LmfafJotwOPratnaraMp PLC 7%K Com Prf 
SticEl - 78(174«04) 

Lforaiy PLC6* Cum Prt £i -85(22JeM 
Ltstar 3 Co PLC 4* Dab Stir Ftad - CaO 
London fotemetional Group PLC AOR (Sri) - 
$7% 729(21*04) 

London Seeurttiaa PLC Ort Ip - 3% (2£to6<) 
Loratio PLC ADR fin) - $1 J» 24)1 
Lookers PLC B* Orv Cran Red Prf Cl 136 
C22JS04) 

Low(Wrrt 3 Co PLC 375* Cum Crw Ned Prf 
£1 -85 (22Ja04) 

LdweOfobert H.) 3 Co PLC 8.7SN (Nte Cm 
Cum Red Rif Wp -5O(21Ja04) 

MEPC PIC 0%* lat Mtg Deb 98c 07/20X2 - 
£101 C21J*04) 

MB>C PLC 8* tfoa In Stir 2000rf» - 203% 
MEPC PLC 10%* Urn Ln SOt 2032 - £HM% 
<21*04) 

McAJpintfMfrad) PLC 9* Cun Prf £1 - IOC 
McCarthy 3 Sune PLC 8^$K Cran Rad Prf 
2003 £1-87 

MoCramy 3 Sion* PLC 7* CM Una In Stit 
88/04 - £72 (714*04) 

Mraidarfa Oriental fotemralonal Ld Ord IOCS 
(Hong Kong Rag) - SH10873232 .75*838 
Manttara PLC 5* Cun Prf £t - 53 (174*0q 
Maria 3 Spanora PLC ADR I8rt) - 338.15 
Madura PLC ADR ifol)- $8.4 52 (214004) 
Merchant Ratal Group PtC 8%« Cm Urn 
Ln Stir 90/04 - £73 ppJaOQ 


M e rcur y tatemaDonrt tav Trust Ld Pto ftad 
Prf ip (Raaervn Find) - £4880040 
MRal Corporation Corn Sha of NPV - £2% 
(174*90 

Mrayen Pan to ) J apanese WrgntPd Bhvot 
Ctora A Com Sac (BO -3388 481 fTtUifT 
Muckfow(A8 JJGroup PLC 7* Ctati Prf £1 - 
0S(22J«84) 

NRC PLC 7%* Cnv Bds 2007|Rag) - £86% 

NMC Group PLC 7J5p (Net) Cwn Had Dir 
Prf TOp - 127 8 EQJrtH) 

Natfonti Ponor PLC ADR (101) - $8885 
National Wae tudi ma r Bank PLC 12%* 
Subord UrraLn Stk 2004- Cl 15% (214s94) 
New Cenhat IMtw rae ra m n d Arm Ld ROJO - 
£7% £214*04) 

Newcastle BuMng Godecy 12%* P«m 
foterora B e ari ng gra £1000 -£114% 
(224e94) 

Next PLC 7**A* Cbm PM £1 - 70 
New AC 10K-B* Cun At 50p - 50 eaVMBR 
Nonh of Engtmd BuMng Society 12%* 
Pram fot Bearing (£1000) - £117% % 

FfocBe Gaa & Bectric Co Shs of Com Stk $5 
-$23 (77lii81) 

PraWand Group PIC Ord 2Sp- 201 %3 
Paaroon Zochoria B43 10* Cum W £1 - 
117 (214*04) 

Pad HWgs PIC ID* CUn PM 60p - 57 
{17409% 

Fad Mdgs PLC 0%* lat Mfc Dob Stic 2011 
-£B7% (214094) 

Pad Mdgs PLC 5u25* (Nat) Cnv Cun Noo- 
Vlg Prt £1 - 120 

Pad Souifi East UJ 8%K Ung tn S8t 87/97 - 
eoagti4a»g 

AriroBna S-A. Ord Sh* hB»V (Br ta Denom 1JS 
3 10) - BF10258 

Pttrada PIC 9%* Own Prf £1 - 89% 
PtantdOroak Group PLC 875* CM Prt 91/ 
2001 10p - 82% (T74aB4) 

PotgMgnruat PUfoums Ld Ord R082S - 410 

(no 1-|8«) 

PonraGan PLC ADR (10rf) - 87X3 (224*04) 
Prarakr Hadfli Group PLC Ord Ip - 1% 

RPH Ld 58* (Ftdy 8*) Cum Prt £1 - 83% 


50CDJa04) 

' 12 %* 

r%% 


giJaM 

PPH Ld 4%% Una Ln Btk 2004/09 - £38 
(20Jo84) 

RPH Ld 9* Una Ln Elk 990004 - £94 
(2Xle94) 

R1Z Oorprarafon PLC 3825* ’A 1 Cran Prf 
£1-52 (21Jd)4) 

RTZ Corporation PLC 3J* te' Cun Prt 
ElfffoQ) - 52% (214*04) 

Rood Sectaries PLC AOR (fcl) . $7.15 8 

B2Jo94) 

Frink OmanfoeM on PLC ADR (2rt) - S12J 


Reodkut Intomdfond PLC 6%* 2nd Cun 
Prf El - 50 (174*84) 

Reed fotomsttond PLC 48* (Ftriy 7*) Cum 
Prt £1 -71% 4 (224*94) 

Rsnrid PLC 7%M 2nd Ddi Stk 82797 - £98 

(174*04) 

RdM Oraporaflon PLC 4L55N (Frriy 8%*) 
Cura Prf £1 -63 

re*d Corporation PLC 455* (Frriy 6%M) 
Cum 3W Pit £1 - 84 (174*04) 
nwrfomr Rubber Edatoa Brahad SM 1 - 400 
Rota-Royce Power Engineering PLC 3* 

Cran Red Prftl -55 6 £24004) 

Ropner PLC 11%* Cran Prt El - 124 
Rotork PLC 9%% Cura Prf £1 - 106 

Royal Bank of Scatimd Gnam PlC 11* 

Cum Prf El -11B 

Rugby Group PLC 8K Urn Ln Stic 90/08 - 
B86% (ITJeM) 

Ruaadl(llagraniia4 PLC 8.76* Cum Cm Red 
Prf - 82 (174*04) 

Smfchl & 8oahdd Go PLC ADR prt) - 


Scholl RC 8%* Cum Rad PI 2001/05 £1 * 
102 RojeM) 

Sdeodra Japanese Warrant Fund Ld IOR (fo 
Denom 100 9 m 3 10000 Sta) * $180 
(714*04) 

Scottirti Kydo-Badric PLC CM 80p - 330 % 
183%2%a%4Se7 83%B8%40 
40 % 1 2 3 

Scobhh Metropcflton Property PLC 10%K 
lat Mtg Deb Stic 2016 - £100% (22JoM 

Scottish 3 MeucoatlB PLC 48* Cun Brf El 
-70(214*94) 

SooUdi 3 Newcadle PLC 7* Cm Cum Rrf 
£1 -2Z7 8 (224*04) 

Soottidi Power RC Orrt SOp - 347 9 % 9 9 
83 % 83 50 50 82 % 88 1 % 882345 
5 % 83 8 8 % % 7 .18 % % .71 89 

Seam PLC 48* (Pntiy 7*) "A" Cun Prf £1 - 
70 (174*94) 

Seraa PtC B.7S* (Fmfy 12%*) Cun Rrf El - 
100 (20Jdl^ 

8eam PLC 7%* Una Ui Stic 92817 - B» 

Bewri Rher Crosafog PLC 8* fodraJJntad 

. Dab Stic 2012 BB44W - £113 (22JeM 


Dab Btk 201218344%) - £113 (22JeM 
0W hmMrtSftatfngGo PLC Ord Sha B) 
25p (0*1 192) -085 


Shjl iTranaportiTtedfogCo PLC 5%* 1st 
Prf)CumK1 - 61 5 (224*04) 

s&»a»*3sSi M 

HT %i * 2fl 

StwprtaRnvnce (UK) PIC 7875p8foQ Cran 
_ Rad Prf She 2009-70% (224*94) 

PtC 48 *Pi%i 8*) 

Cum Prt fl . 45 (22J*04) 
Sknon&jpwring PLC 7.75% Cura Red Prf 
92/97 £1 -00 

***9 ftjdety 12%* Perm fot 
Efoartng She £1000 - £118% % 

™ ^ Subrad Una Ui 

Stk 2001 - £105% (314*04) 

8ntito QMl) Gnagt PLC *8' Ord iop - ill 
R0Je94) 




Srrg^taBaedram PLC ADR pci) - 



Hmnweson PLC Qd 2Sp - 340 2 9 50 
Hardys 3 Hansons PLC Ord 5p - 292 
Harrfoghrtlp) PLC 58* (FMy 8*) *B* Cran 
Prf 1-4Oj000 £1-77 (17J*04) 

Hmbro for: Sha of Com Stic $050 - $283803 

% P0Ja9fl 

HercUss Inc Shs of Com Stic trf NPV- 
SiiOA (714*04) 

HMdown Hdga PLC ADR(4n) - ML4 
Hrima* P rote ction Group foe S»nf Com Stit 
$025-3031 

IS hftnatoywi Fund NV Orrt RJL01 - $18% 17 
Iceland Group PLC Cm Cran Red Prf 20p - 
112 

foch Kemath Katang Rubber PLC lOp - 
£11884* 

fodranrld Control Serafoe* Grp nCOW 10p - 
143 (224*94) 

foil Stodc Exchange of UCSffop of M0%* 
kttg Dab Stk 2018 - £104% 

(rtati Uto PLC Ord HQ.10 - £185 188187 

pm% 

Jaidfoe Mamawa Mdgs Ld OKI 5025 (Hong 
Kong Reghtra) - 2483 SK503357 % 

.74533 J522 88875 8.131578 .14738 


SndMtfcv Deechran PLOMhMfoe ADR 
STD- £27% % % 

saraiddrt o — gerad RC 12%% SUbart ifos 

Ui Stic 20028)7 - £1 13 4 (17<foB4) 

sradka fodawtoa PIC UtPi9fh% Qm$n 

-BB6ZM9 

SOEMto^ p eri un rai PLC 9%* Red Cran Prt 
£1 -90(174*04) 

9M*P0f»$*SMUJ&3*QimPrfn -77 

rrrm 

gymondt Eoflfoerafofl PiCOrt 5P r” * 

T3 N PLC 11 %* M« (fob sec 08/2009 • 

srn&% c7iJ*0<i 

TSB Grow nr 10%* SobonJ U» Stk 2008 
- £105% (224*04) 

TSB Ottewralrar Fbad Ld Pto Red Prf 
IpTwAnrataraiCtaa*- 43021 OWrtfl 
TT Qronp PLC 10875* CM Cum Red PH 
Sha £1 1997 - 270 

Tato 3 LM* PIC 8%*(4L5S* f*» tra wad- 

tgCtm Prf £1 ■ 70 

TM* 3 Lyfe RC 8* Lfoa Ln Stic 2003/DB • 
£80(714*04) 

Trace PLC WBfMJ-SM 
TMtand karanritaod Fwad (4 Ptg *9® 
(tORri to Br) - $97% 26% 27500 
mom SW PLC ADR ore - $16.4 
IMMora Hourar PLC 10%* Una Ut »K 
2001/DB-EBB 

TrramdMdd Hotofoga PLC B 8* Cw P«f O 
-07% 

Unfcpaa PLC ADR flrf) - $8 

Urigoto PtC S* Una In SBt SUM - £B4% 

{2U(0l) 

Urtgam puo 6%* lfoa u> am 91186 - ns% 

U M raar PLC ADR RCT)- $10184 (2 2 Jdl l) 
Ifolm hriranrafonri Co PLC 8* Cue Prf Stic 
£1-47 

UHba Wbraaatfond Go PIC 7* Cum Rrf Sbr 
£1 -53(714*0*) 

Unisys Crap Own » SUK - »% 

UHRy Oabto PLC wramaas to eob far Onf - 
19 

UMu* 3 foeone Twat HJC Wtomnra 80/04 to 
Mb for CM - 41 02Ja8<) 

Vtiuc Group PLC 4%* a Cum m Cl - 48 
(223*00 

Uam Grom PLC 8875* Dab 3tic 2015 - 
£103%(2UdM) 

Vkhara PLC 5* Ctaafte Fra* ToaWPrt 
38c £1 -85 

VbrMoa* QtmP PUS AORtlOrt] - $78 % .18 
% 

wagrar torferaWd Mdg* PLC 7J5p(Neq Cm 
Pto Prf TOp- 14* 

WaarrafThom**) PLC CM Sp - 28% (174*04) 
WSrafirad (SXL) Group PLC 7%* Cun ftf £1 
-06% (22JriM) 

WatmouriidHclgs/ PLC BVKCkanFMRf 
2D08 £1 -98% 100% D 74*04) 

WaSowne PLC ADR 0-1) - »I -15 .15 2 


Wtei Corroon Group PLC AOR (Sl)- 

Wtamat PLC 10%* Cura Prf Cl - 
(174*04 

Wbotoombara Group PUS 7%% Cum MW 

fii.nstRUdMt 

Wbofoambraa Group PLC 6* (fore Snrf Prt 

Stit Ci -57(704*04} 

VfyMfc CWrtBB Certoaa RC 88* Wte Crw 
Cwn Red Prt Ei - 151 ( 174 * 04 ) 
VorttaMra-TVm T#*e TV Mdg* PLC Wto to 
suo for CM - 163 

2amtWConealdated Copper MbeaUTB* 

OrdKi0-200 


USM Appendix 

SSSSSSoSSSm 


Pra^ ri u d Qatm a OD Wi u ra i te n W BCrfg ■ 


Sots 


Investment Trusts 


Wp- 101 

FBD MOfofoga WC CM wuo ■ *1% 

iflnjaBi] 

QM* Mfop PIC Cte Mp - 430 CUB* 

<M 9ouW«n Oreiw PLC«-79p<3mCm 

Mldtapd $ SoMMh ReeaueM PlC OnS Wp ‘ 

5%%(Z1J*«G 

Mart (Mop PLC M Kan -V» 

BUsM 

Told Syewm* PLC Onl Sp - 20 2 3 4 6 
(QJaM 




OMmaften 


Pe u a Ud^ Wira R OR tei fop rai JWM h I 

-fVW&tUJW*} 

i to u ra j miaaM n— meWOldtwr. 

$2 700800 WUrM 

n«n MM0M PLfl CMrtt ‘t7% 

N*v«m MM* 01* M cw to . n 


RttPMra ROOM* CUtPUO 0 OMWCim 
. ctHDOurao . 

BeMf Wfl NtwOnTH**** 

Wh MpT L OOte £1 - 

Ptk Ptete • 

tea rarRwfora * UMRp • mttfttt 


Wrarf Kra* Wtotor Co 12%H Rad Deb 9lfc 04/ 
06 >£102%4 

WtdforwKl PlC 4%*ira Cun PW Stit Cl - 
52(824*04 

Warned PLC *%% SM On Prt Stit £1 - 
52BO4S04 

WMonad PLC 8* MCom rtf SOt Si - OS 
(214*04 

WhOned PLC 4%K Rad Dab 9* 9BG0M - 
£73 (1/4*94 

Mnmd PLC 7%* (lea m Sm HIM - 
£31% 3 

Whsnmd PlC 7%* Uw Ls Sft 060000 - 
£K%(7TJ*04 

WMbrasd PLC 10%* Urw Ln Mi 2000/08 - 
£135% 

WMeraOB PLC 5.1* Cub Prr Cl - 55 
CUlaBQ 

Wktoey PLC 7% Cirai PM £1 -S3(r74a04 
Wktray PLC 8 TV* Ora Cun fed foal Prf 
2000 £1-85 

VMarasi 3 nddrfVMp* Id 9* Cun M 

8Mk EKTaa Prev To 30M • 78 CBUdM) 


Abhuat Nt*r Omm fov Truer PLC C 8b* SOp 
v 244 

Adravra Tnrar PLC 4%* Dab Stk Red *Or 
10/308 - £44 (174*04 
Bara* Gtiford Japan Tmat PLCWtolaWro 
OTO9M-193 2 00pa*>«4 
BdWr Cterart 8Nn Megan PUS Ww*"» *9 
sub tor Ord - 128 (214*94 
Bantam LimvWient Trust PLC 15* Cran Prf 
ant - 1»4 (a » e B«) 

BriBab Aaooto Thrat RLC Eqritisa fodexULS 
2008 10P- 1«8 

BridrfiEropm Sec 3 General TruM W%* 
Deb sm 2011 - £107% (174*94 
CSXLbnwatnranc Trust PlC CM SSg - 100 
Copfoti GearfoB Thral PLC &d 83p - *90 * 
eqjtti 4 Soodrih foMaaonr PLC “V 280 - 

107(2Z>94) 

miBTi r fll "T ■" ***— " n e *“** 1 >>l11 — 1 
Ura Ln Stic 2001 - 148 (21J*04) 

Boabray Wndfor Co's True PIC Zero Ora Prt 
25P-181 

Coronw* arttish foe 3 Or® Tar PlCZen DM- 
(fond fhf lOp - 10« C2J*04) 

Grannora Shared Equty TnM PLC Oearod 
Ord foe TOP - 107 

OrnnmVriM ku e nuaHi PLC 054* 

0*b Stir 1985 - £102% 004(94) 

HTR Japan*** 9nri*r Co 1 * TM FLCOd 
23p - HJB % W 1 % 2 
Irort 3»i»r.r to i— m e m Truer Ld PM Red 
Prf a Ip UJC Aahra Fund • C1X0B 
(214*0*) 

Uzrart Select fov ee rn ra u Dwt U Pfo Red 
Prf atp UK. Uqrid Amato Fund - £10 
(17J«0fl 

Uraad Meet ttmabmor Trint US P« Red 
Prf 0.1p Japan tadrat Food - 0025 <L9 
(174*04) 

Urorad Saiea kmatnaM Traat Ld PM RM 
Prf Gip Europe tadm Fraw - C1083 W58 
074*04) 

traufon 39t Uwwenoe kwerimraa PLCOro 

6p- 141% 

MragHOcraMUMiroraCo'e Til PlCWtoto 
rob hr Onf- 48 (724*04) 

Prafoae French to navntitt True* PLCSrae *K 
Wra ran ta to *ub tor Om • 31 (HJe94| 
Patfoea Franca to mato i art Thiat PtCSra* 

V Wraranta to sob tor On ■ 22 C8M«q 
Spftara le m a mm 1>uat PLC fri .raad War- 
ronto to sub tor OW - «% (ZX4a0«) 

TR Ctiy erf London Dust PLC PW 0>rt 
SlMN* NonOuraKl - 207 
TR CHy erf London Dwt PLC M%* Oob Stir 
2020 - £107% (224*04) 

Draparaton Trust PLC 12 S/lfi* Dab Sft 

20W-£ia(17Jte4) 

Updown m naattn i n t Co PLC OM 26P-860 
00Ja04) 

WlQmora Property foaae toiH Tat P3CWto to 

Sub tor 0W- 43 

Wfow fovegtount Co PLC 8* Dab Stk 98/80 
•EBACttJdM) 

Mfon InwaMMi Co PLC •%* Deb Stit 
2016-00% Ct-MH) 


Rule 535(2) 


AffoSeeerOra-uvCotdadrf ■ »44 
Am StiMf BnwmrCg u G8* Nd M m 
Cl-OLOGOJeM 

Mend Foatiidi Quo PLC Oed O ■ £809 

BijdA 

Aaron Vito FomaBCWb PLC Ote B(l vaMI 

• rmmirai 

BfomMraMdkraro PLC CM 10 - CB>t* 

BmacerafWXJd Son PIC Oed 86p ■ 

a.** 

CsmnnaA PLC Ora ip • t0>l3 

Oranmi Wanda Qqma (IV) Ld CM 8p ■ £0% 
Crrarfopofiterfdid* CbWtoog (Mm - £f 4N 
BOfoM 

Caratoy Ooraem PLC Oirt *80 • «U» 

pUsbR 

Crourfhe ry forinB® ew8 Hrilga 5%* Cum *f 

£1 • |M6 

OMVafcg UgM Mray Id <M Cl • CMS 


BoutilQNMHfdgal%i0hMte>B9lM . 

jQjtot'i) 

totiMwao Iter dpwera PLC Orrt £» . MJj 

■OdMbVMteJLOCM lOp-ttM 

gtUtiMI 

aBMvRMteni aw ci-cuff <w «jiK 

ttiten NMtf HbH UI OM ?* - CMV 


Draeerai HkfoaPLCCre ICfo- BLHflTJaH) m 
(wm Foorom Ckib Oo Lri Od 8« Cl - 


Froc eat MeraM — O o wora doaPLCOMBp- 
nnonjawi 

Gutter HritMcp PUS CM Ip -OUST Otftt 
ffoagr ^ r h foro hran grp Maraen PLCOweap 

Ouameey d*a Lkrfn Oo Ld ore We - UXTt^ 
Hranbro* Fund ifomufOi) Jarara. Mara ■ 
prfo* fifod - $<U8(I7JM0 
t E ft fbaup PLC CM Wp - 934 (RM84 
ITS Group PLC Oran - £048876 GU*#4 
»BMOOldtlBlmaMUJrt«n>WH» 
3 Growth - £3061 

4MM«aa Broa Ld CM SOp - £1 JS G7Je»0 

JMrtlteMM Ml iOaMOflB • CtV 

(174*94) 

Jjai Group PLC CM Ip- tote ffUM* 

Jud Group PLC Wto n aub tor Oed -Crun 
(2UsM 

NWnuort BamonM >%M Mrat w foe Urito 

BoodN-tdrefcrunH 

Klai n raut B rawoirtM Fund Mon Japes**** 


TteghurPUG Orrt 8p< 80X9 (HJ*M| 
B ora te Ndn a rij PW CM B. ■ Wrf . 
U^MhMRCOHteiWMM. 

IteMW torn PlOOd fate- COM (*14*89 
>Mra M i y)o* teootiratt) Lo Om H ■ tl 

V ew fo rap DragOti PtOCMft « 9X0 

rtomMmntei nm rtoPlcowrM-WBt 

MeMTof^w-nSeiS 

HNMrtrablMI IradM PUB GM«te- »» ' 
wateatlsfoi Baai.idiinHO Wtotoaobfor 
Ort ■ BUM 




MmmMi 14 *A* NM.V OM MW • *18% 

BUMGlUlttV - 


W Ukrf— h OPtfoPlO Cart 104* .. 

1 17JMG 

VWMb» RoutiM Dm* PUS Owl «Qp - 19% 


vrfaarn prinoiptetWti rt anCte oMate 

trw IIK «nd mfwMkr «t Mmd 


lAMdonanO 


* are hot 

OflteWUst 


Wetowort a ire o M MftattManKBOtePrairt 
-CVMMPtiMaOG 

ida tow ot r Ga nmn lM Fu*o Man fot toMry 
(for® too - £283 (204*84) 

LancwMNl Elti rapmio PLC Orff 5p ■ £153 
LaMto Oroop PtC Orrt Cl ■ CKI 
Ll MMfc tfona Ld OW £t ■ If * (RUM 
Lwnoai PC 3 Aaaaau Ctouiit Puoore ts- 
£700 

»mraw 8 MraonM* Brautom PWC CM 

wnie.Hi 

Iterate eft PLC Ore Kfo - GXO* pUMG 
MuMaottLaOrt lOp ■ £0-14 
National Strung Oarp Id CM IQP-C44 


IMMUiniim 


arafrMfoi Da DndgfoO RMtWSWmtil 


te6 temw>i tmiiM) 
DnwtAMUMOUl 
■af* Cteltelii— (ITS) 

p — em i M >— Amm 

RmrtLrtw$48%9tje 

NaomaNtetertMOteOWteJi 


NBWiranbiton RtrtrttrtM teoprartoAC Ort 
lOp ■ BL73 GTJteG 

Pan Andean ReeouroaateC Ord Tb < BLOC 

flf tofrfl 

Pork Lim How Pl/CUH Cten PlfO • 

£0.76(204*0% 


Redd HbfoM HMga HH8MPQ5| 

Nmi a mmnmun 

rttekete lfote g ^ iR n il - 


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4, 




MARKET REPORT 




Footsie at new 1994 low on dollar’s problems 


By Terry Byland, 

UK Stock Market Editor 


*“ e stock market plungei 
through Us low point Tor the yea 
yesterday, closing at its lowest teve 
stace July 1993, as fears grew tha 
the apparent failure of central banl 
intervention to protect the dolla 
may force the Us Federal Beservi 
to raise interest rates. 

Although equity trading was no 
heavy, share prices collapsed as tiu 
dollar continued to fall. The FT-SE 
100 Index declined nearly 66 point: 
to close at the day's tow after one o, 
the largest daily setbacks of th< 
year. The final reading showed th( 
FT-SE Index down 65.8 at 2,876.8. 

Interest rate fears were fueller 
from the US market, where the Dot 
I ndustrial Average was down 4( 
points when London closed. Almosl 


the whole of the Fbotsle 200 list was 
savaged, with the UK interest-re- 
lated shares vying with dollar 
stocks In the setback. The market 
closed without a glimmer of recov- 
ery, with traders convinced that 
unless action was taken over the 
weekend, the dollar and the securi- 
ties markets would face a further 
pounding next week 
British government bonds had a 
turbulent session. Alter Calling at 
First as the dollar weakened, 
gilt-edged securities quickly rallied 
and briefly moved into positive ter- 
ritory when It was confirmed that 
the central banks had taken action 
in the currency markets 
But the bond market turned down 
again sharply as selling of the dol- 
lar was renewed. By the close of 
trading, short-dated gilts, the most 
closely linked to UK base rates. 


Account OeaDng Dak* 

iwPwtoi 

Jun 8 

JIM SO 

Jd 4 

OpOoci OacUraMocac 
Juo 16 

Jim 30 

JU 14 

LaotDeutapc 

Jun tr 

•M 1 

JU IB 

AenouBt Dor 

Jun 27 

JU 11 

JlUSB 

ftow um docdlnpn 
tolnan ta+uakr. 

uv taka 

1 

! 

i 


were % down. The longs, continuing 
to express fears of inflation ahead, 
shed Index-linked gilts, the mar- 
ket’s inflation hedge, slipped 3. 

In the equity market, losses 
across the broad range of equities 
were reflected in a fall of 62.7 to 
3.37-L2 on the FT-SE Mid 250 Index, 
which covers an extended list of 
blue-chip and second-line stocks. 

However, equity volume, as mea- 
sured by the Seaq electronic net- 


work, recorded a total of only 
450L2m shares, a relatively low fig- 
ure and nearly 1? per cent down on 
Friday; non-Footsie shares made up 
about 56 per cent of yesterday’s 
total. The poor volume figure 
bore out comments from several 
leading securities houses that the 
current weakness of UK equities 
has been caused by unwillingness 
of the institutions to buy shares 
rather than by heavy selling 
pressure. 

Several leading securities firms 
again drew attention to valuations 
of equities against bonds, suggest- 
ing that these Implied that UK 
shares were not overvalued at cur- 
rent levels. Traders said that there 
was "some selling” at the opening 
when international clients reacted 
to the fall in the US dollar in New 
York and Tokyo. “But after that it 


was too late to sell," said one 
dealer. 

The Footsie managed to regain 
the 1900 mark briefly when bonds 

turned higher as the central hanfcs 
intervened to support the US cur- 
rency. This was also seen by some 
optimists as an indication of under- 
lying support Cor equities. 

But the finally convincing loss of 
the Footsie 3,900 level was an 
alarming development for the 
equity chartists who now fear that 
the market could be vulnerable 
down to the 2£00 mark - unless 
more determined action is taken to 
settle the US currency. 

Some comfort was also taken 
from the rapid, albeit temporary, 
recovery in the bond market at mid- 
session. Volatility in this market 
has been a prime factor in unsettl- 
ing equities. 


FT-SE- A AU-Shar* Index 



■ Key Indicators 

taffies* and ratios 

FT-SE Mid 250 
FT-SE-A 350 
FT-SE-A AH -Share 
FT-SE-A Aff- Share yield 
FT Ordinary Index 
FT-SE-A Non Fins p/e 
FT-SE 100 Fut Sep 
10 yr Gat yield 
Long gHt/equity ytd ratio: 


Equity Shares Traded 


Turnover by volume (NttcnV Eicbdrv 
Mta-ntarturi btstficM ant) owna tunever 
1.000 





FT-SE 100 Index 


33742 

-62.7 

Closing index for Jun 24 

.23766 

1451.3 

-31.8 1 

Change over week 

..-146 3 

1445.85 

-30.5 

Jtm 23 

. 2942.4 

4.08 

4.00 

Jun 22 , 


2240.6 

-505 



18.46 

18.84 

Jun 20 


2864.0 

-714) 



a79 

8.71 j 

LOW 

.2874 7 

2.15 

2.18 1 

1 "totra-d ay h*jh ond low for Meet 


TRADING VOLUME 


EQUITY FUTURES AND OPTIONS TRADING 


■ Major Stocks Yesterday 



vot 

CSodno 


VbL 

ctoaing 

a*f* 



petea 




price 


ABDAQreupt 

Abbay NaUanarf 

10.000 

\jm 

tah 

391 


LcrrtiQ 

1 IMAltoi 

1.600 

ICO 

-4 

AtoU-Lyocwt 

1.000 

Suoo 

40 

992 

-2 

-14 

UEPCt 

BSD 

411 

-7 


161 

468 

-9 





AiUl Grant 

ActoWtotalt 

Aanoc. Bra. Foodaf 

ijan 

3.000 

1000 

MH 

338*2 

233 

348 

505 

-5 

-4 

-2 

-a*2 

MontsofiCWng 

3,100 

380 

213 

303 

547 

126 

-a 

-14 


BOfl 

209 

-4 

IMWaalBa&t 





UBO 

882 

-17 

MafanNPlMwt 





MOO 


-0 

Nred 



-*2 


1000 

113 

•a 

North WMt Want 


467 





-8 






660 

700 




199 



«tf00 

me 

-8*2 

Ncracb 




BPB maa. 

1,100 

292 

-1 

Ptoraoot 

1.900 

630 

-W 




-a 

P & Of 





1,900 

2<7*] 

-8 


1000 

103*2 


Bank <U ScxUbnat 

2.100 

188 

-0 

-l 

PomGenf 

l*Li <i l-i ml if 

120) 

2^00 

450 

290 

-11 


1000 

520 

-15 

RMCf 





2JOO 

488 

-14 

mzt 





1000 

377 


RacN 

ora 




£U 

405 

43 






700 

520 

-7 

RccMtt & Cofernt 

1.300 

558 

-6 

Bowulerf 

344 

440 

-7 

BBtanat 


477 


Brtt. Aacospocot 

1JJOO 

445 

-10 

RsedHLf 

1000 

750 

-18 

Bntfah Ahwayat 
BrttWiGasf 

zm 

Rom 

374 

2S3 

-13 

-8 

RentnUt 

Rautanf 

906 

3500 

205 

428 

-5 

-0 


373 

364 

-14 

RobRoyart 


174 

-7 

Bnttsn Smelt 

Buul 

1000 

flfiB 

131 

141 

-4*2 

-10 

Ryl BhScMkndt' 

1^00 

413 

-IS 

RtenW) CmT/rif 

AB7 

840 

-7 

SMturt 

(.TOO 

3S5 


BuraoR 

2000 

57< 

-*Z 


IQS 

1140 

-25 

CNUa&VWat 

<300 

412*1 

-15*2 

3cohl»h A NOYC-t 

424 

502 

-7 

Cadtoy SchMppat 

3^00 

412*2 

-11 

Scot. Hwho-ascL 

387 

323 

S 

Cfaa Group 

3.000 

265 

-0 

ScoQWi Poanrt 

538 

343 

-7 

CanidonT 

1.000 

292 

-5 

S«nt 

778 

116*2 

-4 

Csrlton Comrr».t 

1.000 

DOT 

SI 



187 

-3 

CWB.W P *>t i 

2.400 

219 

-4 

SeatMad 

uxn 

305 

-13 

Cocnm. Unlacrf 

oar 

403 

S3 

Davani Trontf 

S94 

469*2 

-8*2 

Cooknon 

654 

230 

-9 

Shea Traroportf 

1000 

084 

-13 

Couitniudct 

1.500 

474 

-15 

acu^EMB 

1^00 

517 

-17 

Qtaw 

230 

304 



234 


Da La Fknf 

230 

871 

-18 

SmCBJWXJ A 

661 

482*2 

a 

Dim 

1200 

108*2 

-3*2 


448 

1431. 

Eaatecn Eloct 

119 

ECS 

-18 

3nM BaadMmt 

2£00 

382 

-ii 

Eat MldmlBecL 

3m 

573 

-11 

Sn+0 Secdwn Ua.t 

2AOO 

364 

-e 

Eng China Ctaya 

774 

335 

♦1 

Sndtatnta. 

551 

429*1 

-12*2 

Enwpitaa CBf 

481 

399 

-14 

SouBiom BecLf 

905 

546 

-14 

EwntuHMl Unto 

S18 

200 

42 

SanhVWtoeBacL 

120 

503 

-2 

RQ 

2*U0 

189 

-6 

South Watt Wour 

393 

484*2 

41*2 

Fta™ 

1.300 

132 

-a 

Soutnvwtf. Beat 

191 

565 

+1 

Foreign & Col LT. 
Fort? 

944 

127 *2 

-3 

Southam WAdar 

234 

474 

-0 

1,700 

224 

-a 

Standad Ctrertdt 

947 

242 

-12 

Gan. AcckMrtt 
GanaNBaeLf 

700 

538 

-22 

Stnrahoun 

587 

210 

-8 

asm 

274*2 

-6*2 

Sun/tamcat 

2000 

288 

-10 

3,600 

532 

-10 

TON 

307 

213 

-6 

Oynwto 

215 

338*2 

s 

11 Grant 

002 

300 

-0 

Granadat 

3,000 

916 

-13 

TS8t 

?wn 

204 

-7 

Grand MaLf 

SAOD 

378 

-14 

Tamrec 

<700 

142 

S 

1.400 

657*2 


TmakLyta 

251 

402 

-1 

ofle| 

1JXH 

182 

TnferWMto 

53S 

m 

-4 

GKNf 

300 

502 

-8 

Teacot 

asoo 

226 

-4 

Outawaxt 

w 

441 

-7 

IhantM Wasarf 

264 

434*2 

-10*2 

HEBCflSpNWt 

2200 

674 

—16 

Thom awf 

1.300 

1014 

SO 

Hamnwracn 

320 

334 

-11 

TomKtast 

1000 

217*2 

-eh 

Honoont 

7.400 

235*2 

-4*2 

Tnfeta'Kouaa 

4J00 

84 

-4 

IMwinCnuMI 


157 

S 

UUoate 

1^00 



Hays.- 

WJOO 

205 

-10 

Unfcwct 

4400 

.058 

-T« 

HMlMi 

860 

154 

-2 

UrttedBtaitBt 

656 

313 

-a 

M 

189 

294 

-3 

UHL Nonpapem 

3,400 

485 

-as 

Ot 

1000 

730*2 

-41*2 

VwMomt 

37100 

482 

-7 

•nehaewf 

009 

438 

-12 

Wa*reg|3Qt 

700 

688 

-13 

Jotnmn s.«awy 

117 

400 

-17 

Weacreaat 

3,100 


+12 

IQnsIWMh 

1000 

481 

-13 

WoWl Waier 

100 

568 

.+1 


622 

580 

-3 

WtonocUMer 

261 

598 

-8 


743 

ISO 

-3 

WMtbroodf 

590 

406 

-13 

Land SecicWaot 

1000 

500 

-14 

WHsnt Mdga.f 

1000 

330 

-10 


121 

710 

-4 

W&CreiDon 

177 

151 

-3 


418 

413 

-8 

VAicnsp 

MS 

188 

+1 

Lkiyrt* ADbm 
UoytaBankt 

10 

333 

-3 

Wbtetot 




1.900 

522 

-19 

YotahtoBacL 

430 

549 

-3 

LASMO 


148 

-1 

YodoMreWtor 

M 

403*2 

-*a 

London Beet 

1.000 

535 

-a 

ZOnacot 

1000 

687 

-6 


Bn* m katag mtaM to a itartm d edor mas Ml Dm* in SEU total Mtftov u* 430m. Mu 
dm total ■ non MramM ton. ttatom an FT-SE uotatanniBMt 


Continued weakness of the 
US dollar together with fears 
on inflation on both the UK and 
US sent stock index futures 
plunging, writes Joel Kibazo. 

By tha dose, the September 
contract on the FT-SE 100 was 
at 2,864, down 71 on its 
previous finish and at a 26 
point discount to its fair 


value premium. 

The session was particularly 
volatile and September, having 
opened at 2,908, reached a 
high of 2,915 after lunch 
before falling to the day’s low 
of 2,860 towards the dose. 

In traded options, total volume 
was 37,152 lots with 21,454, 
done in the FT-SE 100 option. 


■ FT-SE 100 INDEX FUTURES QJFFE) E25 perhj Indax point {APT] 

Opon Sett price Change 1-flgH Law Eat vd Open InL 
Sep 2908.0 28640 -71.0 2B15.0 28800 18822 SI 175 

Dec 2S7O0 -71.0 0 952 

■ FT-SE MP 250 tNPEK FUTURES (UFFE) CIO par IU9 Index point 

Sep 33600 -42.0 0 4090 


■ FT-SE MIO 2SO INDEX FUTURES fOMUQ CIO pcfkO Index point 

Sep - 3360.0 577 

Al open Hum OgwM to prautan day. t Bod intone ahem. 


■ FT-SE 100 INDEX OPTION (UFFE) (*2877) CIO par lufl Index point 


2700 2750 2800 2850 2900 2950 3000 3050 

CPCPCPCPCPCPCPCP 
M TO 18 ISPz 25 Uh 38 Wz 55 38 8Ua HhllSh II 157*2 6 201*2 

tag 193*2 34 1S8 48*2 124 M 98 85*2 79*2 110 BO 1W 2 34 173*2 2tl 2 2104 

Sap 216*2 55*2 179*2 57*2 147 83*2 117*2 104 901, 128** 89 156 50 185*2 38 221*2 

Od 233 n*2l«*2 79 MO 97 130*2 116 185*2 140 05 166*2 95 198*2 S3 235*2 

Decf 2(7*2 79 184*2 112 138 158 88*2 215 

Catl 8.471 Mi 12*11 

■ EURO STYLE FT-SE 100 INDEX OPTION (LIFFEj CIO per tuO Index pofrw 


2625 3325 Z775 282S 2878 2925 2S775 3023 

M 338*2 5*2 1(7*2 17 106*228*2 75*2 42*2 47*2 85*2 27*2 95*2 14*2 133*2 7 174*2 
tag 251 15 172 36*2137*251*2 187 70*2 60*2 63*2 58*2 121 41 153 27 189 

Sep 282*2 26*2 185 46*2 122 83*2 73*2 133*2 49 190 

Dec 305 63 233 88*2 170*2 124 119 170 76 226 

Hat 336 80 287 105*2 207*2 145 195*2 188 113 243 

Ota 1,370 PUh 3,191 * iMortykng total doe. Pnotam rinm are bawl in ta flamanl prices, 
t long dtadwtar monto. 


■ EURO STYLE FT-SE MID 250 PCBt OPTIOW (OMLX) £10 per M index point 


3400 3450 3500 3550 3800 36S0 

JbJ rn B 3 \ 33*4 93% 19*2 130 10* 171 5*a 215*2 

Cata 0 Rta 0 sabow* prim «bI wImu ara ltoand43apm. 

3700 

3750 

| FT-SE-A INDICES - LEADERS A LAGGARDS j 


Percentage changes since December 31 1933 based on Friday June 24 1994 

towito .. . 474 

FT BOM Mom Mb _^_ - 1ft!9 


01 EtonafcW 5 Prod *467 

Mtona, Ptoar A M« .— +440 

04 UegraM +1.13 

MM EitmcHon +142 

Eadneotog. VM4dM -Ota 

Extocaw Unto . -683 

Petotoii -UP 

Ldwe & Hntob -1J2 

JT-SESbtoCmeitoM — -1.74 

Batoeetog -S.11 

FT-se sutoCty -3.48 

iWatos. Food -M2 

GHUMUftClUBS -7J4 

ToBnBtaiMd -8.14 

HneOeri tariwMaa -853 

Herito -Ml 

HtaOiCm -Bl93 


□totem -10.43 

FT-SE m SO K toe Til _ -HUB 

sancEs . -low 

FT-SE tad 250 -II XO 

Bectoonic S Bed Eqrip -1152 

Sqnxxt Santo* -U-&3 

m+flttwais — i — -os* 
Beta a Omdudfen — -1243 

■MsnnriHusis — -1324 

FI-StA Ml-SHfl* -1405 

Sefeta IBM • Odes — -1491 

Food tfantactoms -1400 

FT-S&A350 -H7I 

ItotaSn Sannl -15.48 

FT-SE 100 -1005 


COKItoBI GOODS 

~ -I7JB 

Tree pat .. ~ ■ — 

-17JJ9 


AMna HH»8 Itodl _ -17.70 

HanetoM Own* . — -1700 

LBttaweto . ■ . , -1858 



.mm 

BK*tc9y 

Titaananktaai 

-18J0 

9 -21 JB 

UIUIB 

-2163 

mount arts- 

-2257 

kmaito — 

-2173 

-ZL98 

tarta 

-24.11 

-2SJ9 

Totaccc 

-32.70 


1 FT - SE Actual'! 

As Share Indices 













i he UK Series | 



Dert 




Ye» 

Ml 

torn. 

HE 

w «4 Tam 

- n 

— 1094 



Stoa CnptattM 


Jib » 

dgM 

JIB 23 

Jdd 22 

Jn 21 

V> 


m 

n» 


tan 

Mto* 


Uh 


w> 


Uh 

FT-SE IDO 

2B7&6 

-22 

2M2A 

29804 

29402 

2887 S 

490 

728 

1526 

5291 

107597 

3SSL3 

7 ft 

2S756 

24/8 

36289 

2/2/94 

3858 23/7/84 

FT-SE IM 250 

33742 

-13 

34369 

34B1J 

34819 

3213.1 

398 

597 

2524 

5377 

12*526 

41529 

3/2 

33742 

24/B 

41529 

3fflB4 

13794 21/1/88 

FT-SE Ifld SO a tar IhaB 

33735 

-13 

3437.1 

34652 

34879 

32250 

395 

547 

1894 

5S97 

124179 

41807 

19/1 

33739 

24/B 

41807 

19/1/M 

13753 21/1/88 

FT-SE-A 360 

14513 

-11 

1483.1 

14325 

14847 

14399 

4.16 

537 

T794 

2594 

111056 

17753 

2/8 

14619 

S4fl 

17753 

2 raw 

6645 M/1/86 

FT-SE SMtatap 

180158 

-f.t 

18 m* 

S 33463 

(82508 

164790 

111 

4.18 

30.43 

2548 

13S796 

289*98 

4 n 

180568 

24/B 

209498 

40B4 

U6U9 31/1392 

FT-SE SafCap ■ to Tnot* 

1/86.00 

-IjO 

180433 

180062 

180973 

165191 

1 23 

458 

2532 

2391 

137697 

208072 

4 12 

178508 

24/B 

20S572 

4/2/94 

136379 31/12/92 

FT-SE-A ALL-SHADE 

144535 

-2.1 

147836 

148505 

147583 

142566 

498 

577 

1792 

2580 

1T2550 

T7Bt.Il 

2/2 

144S9S 

24/6 

1704 11 

2/2/94 

GUO 13/12/74 


FT-SE Actuaries All-Share 

09V Year Hv. Earn. RE xd «t Toni 

Jun 24 cOga* Jun 23 Jm 22 Jua 21 yW iM» talc yM Btaim 




-1994 


Um 


■a* 


10 MOCfiAL EXTMCnaqiq 258901 

12 Umdlw WtosWesiq 3685.12 

15 G8, Hegratoim 254024 

16 00 EebtaD a ProriCll) 1918.44 


-lO 284003 2037.75 280406 223900 

-1.8 375207 377400 372408 311000 

-20 259409 258402 255101 2160140 

-TO 193141 1969.40 195058 1075.10 


301 403 27J3 3703 102016 273044 
300 5.48 2207 43J9 100509 410705 

302 408 2608 4003 100208 219120 
348 123 aOOOt 1627 100802 209903 


13/5 
2/2 
105 
2374 175440 


,12 


31/3 273944 13504 99000 19B« 

24* 4107 JB 2WW 190900 31712/K 

30Q 2581 -28 10/5*4 9BL30 2072 « 

31/3 38M.1B 8/8/90 EDOJO 28/7*1 


20 gem anuwiurnjBatspsj) laesuos -20 1 bozos 1 910-68 190305 173340 408 «ob asas aoxs oaasi 

21 Bdtan 8 Cmttrac00K32) 1145.19 -lO 119203 -116073 1146J75 105400 333 408 28.19 1502 88370 HG8.10 

22 BiAtoa MA & ItadeOti 179397 -lO 182401 183080 179310 183900 407 422 30^1 3303 83907 238122 

23 QwnfcabQI) 2289.44 -10 232BOS 233200 231572 219570 405 470 3003 4307 100508 235223 

24 OwraOcd hdusmtatm 105208 -23 109705 101709 189907 167300 401 405 3503 4000 93700 223107 

25 Qcctntoc 4 Etoct EqoW3« 188327 -20 191004 1039m 19048 205920 30B 098 17.« 1442 09254 228330 

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QUAATCALY CHAHOBto See etaton dated Jm 9 fpSSj 


Wellcome 
bucks the 
market 

Pharmaceuticals group 
Wellcome was the only com- 
pany within the ET-SE 100 
Index to remain in positive ter- 
ritory yesterday as the market 
took on board research sug- 
gesting that it could be a take- 
over target The shares were 
up 16 at best and ended the day 
12 higher at 598p with 3.1m 
shares traded. 

A note by US Investment 
house Wertheim Schroder's 
arguing that Wellcome Trust 
which owns 40 per cent of 
Wellcome, would be happy to 
see moves from a rival com- 
pany ensured that few dealer s 
were prepared to sell the stock. 
When New York opened. US 
buying pushed the stock 
higher. However, Wellcome 
c laimed last night that there 
had been “no significant 
change” in the US holding over 
the past month. UBS yesterday 
said that it considered Well- 
come a buy on fundamental 
grounds regardless of takeover 
activity. 


Newspapers hit 

The shock decision by Mr 
Rupert Murdoch’s The Times 
newspaper late on TTnireday to 
cut its cover price to 20p hit an 
intensely nervous publishing 
sector and saw bard pressed 
shares tumble further. 

The Times’ move made a 
mockery of Thursday's Daily 
Telegraph price cut and 
prompted some analysts to talk 
of a domino effect in the mid- 
dle market area held by the 
Daily Express and Dally Mail 
which could end up at the door 
of the Daily Mirror. 

Telegraph shares were also 
weighed down by questions 
hanging over the recent l£5m 
stake by Hollinger, the Cana- 
dian publishing group con- 
trolled by Mr Conrad Black, 
the Telegraph owner. However, 
after the market closed the 
Stock Exchange cleared the 
newspaper. The shares fell 17 
to 332p. 

United Newspapers, whose 
Dally Express now costs 60 per 
cent more than The Times, fell 
2S to 485p, while Daily Mail 
Trust ‘A' shares shed 33 to 


NEW HIGHS AND 
LOWS FOR 1994 


NEW MOHS n. 

BREWERIES (11 HoR (Q, BUM MAILS A 
MCHI3(T] StoM GUbCIRNC 4 ELECT 
EOUP (1) Ptrvnac. 3PWZTS. WMO 4 CIOOIS - 

OT Macdonald Main A. 
muMiKta 

OO.TS (1) BANKS (9| Mad Ml. DataKte. 
Lhiydx BRSWCRKS (U| BUUMO * CMSTTM 

m Borcar Home*. Cnxe Wchnl — v Mto, lata) 
M tt.4pc PL. Rano. VHE. Wtoai BoMlan. BUM 
MATES 8 MCHTS to) CHEMCALS n BtXfen 
W4 DoeflOK. Hctoon hrt. UvcnoL Sc«o. 
DBmUnRSPIWIMMDMUIUI 
EUBCTRfCnT |9| ItoMO. MdbMto, Nanaob, 
ELtocnwe s ELECT bmp n* 

ENOMBETma (1* 0*4 VEHICLE* ft 
EXTRACTIVE MOS (7) AdMtL Bnadwt 
Dagai, EalltodAp, Mnflto— n Dm. 
Manbaw com. NSM. POOD MANUF (n| 4MS 
MSimunoN (DbtdiOe. a*x. mmlin 
CME im/MHCornmurtoyHosn. Court 
Ctontali DnaSdm, OaHtaOMUBh Ml 
OugSty Cam Homes. EcfK* 9Md Oaqna.. 
Tatom. Tapnel Oam, HOUSEHOLD 00009 
to) H8UMMC1 M OommacW union. Oanato 
Acoaent Hadh (CQ. j& Laandas Lambert, 
wits cannon. INVESTMENT TRUSTS |I72J 
■NVESnKNT COMPAMES (1* LEISURE A 
HOTELS N LK JIS3UIUNC8 0 IMtovse. 
Mugs, MM 0«l MERCHANT BANKS M 
Ott. EXPLORATION 4 P900 (2) OeaMcs. 
Whn, Ott. MTEORATn P) Chaymn Cpa. 
OTHER RMANCIAL (11) OTHE1I AERVB A 
BUSM to) General ktonrs unto. SuKHM 
Sonslanaiv PHARMACBITICAIS (* (kampton. 
Pimm mru prtmq, paper a mcko pj 

PROPERTY 0to| RETAUR8, FOOD p) Brtas 
Bnn, Genet. M&W. RETAILERS. OEfQUL 
0* SPMTS, WWE8 8 CttieRS to) 

Grand Mat. Outonaas. HdtoaOW 
Mnydoan. SUPPORT SOWS (1* 
TaUHMWUMCMMNS » TEXTILES A 
APPARB. PI TOBACCO (3) BAT Inds. 

Rodmans UOl. TRANSPORT (U) WATER (7) 
AMERICANS fS) CANADIANS (1*8 

870p. There was concern that if 
those papers were forced to 
reduce their price the end vic- 
tim could be the Mirror, 
already squeezed by a cut-price 
Sun. Mirror Group shares fell 4 
to L30p, close to the flotation 
price three years ago. 

09 switch 

. Enterprise Oil saw its share 
price fall below 400p as one 
securities house advised share- 
holders to switch their hold- 
ings into Lasmo ahead of the 
deadline for the former's hos- 
tile takeover bid. 

Enterprise shares were also 
unsettled by reports that the 
company might try to buy 10 
per cent of Lasmo in the mar- 
ket next week if it feels it will 
be unable to acquire the neces- 
sary 60 per cent through' 
straight acceptances. The com- 
pany was fighting a strong 
rearguard action as its US 
roadshow wound down yester- 
day. A company spokesman 
said: u We had quite a good 
reception from the US institu- 
tions and we go into the final 
week confident that we will 
win.” 


Hoare Govett said the bid 
had “no real industrial or 
financial synergy” but recom- 
mended buying Lasmo because 
"on a medium-terra view 
Lasmo should outperform 
Enterprise if the bid falls'*. 
Enterprise fell 14 to 399p while 
Lasmo was steady at 148p. 

Chemicals group Hickson 
International fell 13 to 160p on 
exceptionally heavy turnover 
of 2m shares in the wake of a 
swingeing forecast downgrade 
by Hoare Govett. 

The securities house cut its 
current year forecast by 2D per 
cent to £19m. The new figure is 
well below the previous range 
of analysts’ forecasts of £24m 
to £29m. The change is 
believed to reflect concerns 
among institutional fund man- 
agers over the current trading 
outlook withui the company. 

Chemicals group BOC was 
one of the few Footsie compa- 
nies to remain in positive terri- 
tory during the day as traders 
stressed the company’s defen- 
sive qualities. However, the 
share price could not resist the 
final onslaught on the market 
and saw its gain of 3 trimmed 
back to close unchanged at 
700p. 

Broker downgrades hit Cad- 
bury Schweppes as analysts 
reacted to a cautious meeting 
with the drink and confection- 
ery group's joint venture busi- 
ness with Coca-Cola. Cola wars 
with own-label goods topped 
the agenda and analysts reck- 
oned on a hit to profits of up to 
£30m in the current year. Leh- 
man Brothers lopped £15m 
from its current year forecast, 
down to £455m, while for 19S5 
its estimate was cut from 
£525m to £495m. NatWest Secu- 
rities and Cazenove were also 
said to have reduced their fore- 
casts. The shares slid 11 to 
mvip. 

After weak sessions follow- 
ing Tuesday's profits warning. 
Hazlewood Foods rallied 4 to 
l29p on speculation of a bid 
from Unigate. The dairy com- 
pany is said to be considering 
selling its stake in Dutch group 
Nutriria. which could net Uni- 
gate around £250m. The shares 
were steady at 366p. 

A £36-5m property deal pro- 
vided some support for Lad- 
broke before the shares trailed 
off 3 to l56p. There was brief 
activity in Savoy with specula- 
tion over a new chairman. The 
shares jumped before felling to 
end the day steady at 965 p. 


« CHIEF PRICE CHANCES 

YESTERDAY 


London (Pence) 


Rises 


Kewdl Systems. 

► 9 

Mocdnid Martin A 

575 + 10 

Sharpe A Fisher 

1G5 t 7 

Stoddard SeHors 

37 + 

Weflcomo 

593 i 12 

Palls 


AmoTognsta 

300-43 

Adon 

SS! - 33 

Bakyrchik 

303 - 13 

Brewm Dolphin 

140 - 8 

Dorty Mail A 

070 - 33 

EMAP 

380-18 

Enterprise Oil 

399-14 

Euro Disney 

135 - 18 

First Leisure 

206-13 

Grand Met 

376 - 14 

Hunters Armtay 

169 - 9 

Rolls-Royce 

174 - 7 

Rothmans Uts 

346 - 21 

Seaboard 

305 - 13 

Sharelink 

257 - 42 

Smith New Court 

365 - 14 

Telegraph 

332 - 17 

Tepnei Diagnstc 

121 - 28 

United News 

485 - 25 

Thorn retreated 29 to 1014p on 

dollar worries. 

Euro Disney. 

the French theme park opera- 

tor, lost 18 to 135p on concerns 

over the outcome of its recent 

rights issue, Airtours gained a 

penny ahead of results next 

week. 



Property agency Chesterton, 
which came to the market at 
loop on Thursday, slipped a 
penny to 99p. 

The poor market trend cur- 
tailed an early advance in Brit- 
ish Aerospace which followed 
reports that British Airways 
was to buy Airbus jets. The 
shares closed 10 lower at 445p. 
BAe builds the wings erf the 
Airbus aircraft and is a 20 per 
cent stake holder in the Airbus 
consortium. 

The press report that BA 
plans to replace Us entire fleet 
of short-haul Boeing 737 with 
Airbus jets, left shares in the 
UK carrier trailing 13 to 3?4p. 

The weak dollar exacted a 
toll on engineering group Siebe 
which derives n large part of 
its earnings from the US. The 
shares fell IS to 516p. 

Aolls-Boyce gave up 7 to 
174p, in trade of 4.9m with 
Strauss Turnbull said to have 
urged investors to "sell" the 
stock. 

Eurotunnel finned 2 to 2S0p. 
with dealers encouraged by 
news that most of the out- 
standing stock from the com- 
pany’s £S58m rights Issue had 
been successfully placed. 




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40X3 


ifixr 

2X45 

3682 

1030 

18X7 

2495 

27X3 

2000 

18X7 

24X5 

27X3 


17X1 

24® 

27X3 

2100 

17X1 

34® 

27X3 

2130 

17X1 

30X8 

33,43 

2200 

17X1 

30X0 

3643 

2230 

25X0 

3020 

33.43 

2300 

26X0 

3QX0 

33.43 

MSI 

17.B1 

22.13 

20X0 

2400 

12X8 

1331 

1648 



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FINANCIAL TIMES WPF.KENP JUNE 23/JUNE 26 1994 





[INDICES 



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FINANCIAL times WEEKEND JUNE 25/JUNE 26 1994 


WORLD STOCK MARKETS 


L 


AMERICA 

US stocks sharply lower at midsession 


Wall Street 


US stocks plunged yesterday 
morrnng amid an ineffective 
effort by the world’s central 
banks to propel the felling dol- 
^Kher, writes Frank 
McGurty m New York. 

By l pm. the Dow Jones 
fedustnal Average was down 
30.69 at 3.668.33. as the blue 
chip stocks were swamped by 
several waves of computer- 
guided selling. The NYSE 
imposed its “uptick" restric- 
tions on program trading at 
11am, after the Dow’s 
crossed the 50-point threshold. 

But the losses were not con- 
fined to the blue chips, as in 
other recent sessions. The 
more broadly based Standard 
& Poor’s 500 was &73 lower at 
44550. 

Declining issues on the 
NYSE outnumbered advances, 
1,698 to 422 in moderate vol- 
ume of 162m shares. 


In the secondary markets, 
the American SE composite 
was off 356 at 42759, and the 
Nasdaq composite shed L96 to 
69849. ■ 

Before the opening, investors 
wee braced far a rocky ses- 
sion. Overnight the dollar had 
dropped a full yen against the 
Japanese currency and was 
again nearing its post war 

lows, after two days of relative 
stability. News of the interven- 
tion, led by the Federal 
Reserve ami the Bundesbank, 
reached the market just as 
trading began. The reaction 
was decidedly negative, as the 
Fed’s rescue mission appeared 
to underscore the US curren- 
cy's vulnerability and raised 
doubts about the sustainability 
of its support efforts. 

The sell-off in stocks gath- 
ered pace as the m orning prog- 
ressed and it became apparent 
that the intervention was hav- 
ing little effect on the dollar’s 
value. Bonds hreached a key 


support level, and share prices 
broke into a free-fall which 
was finally broken when the 
program-trading "collar” was 
put in place. 

The morning's events 
suggested the Fed may have no 
choice hot to lift interest rates 
again. As a result, the share 
prices of companies which 
would suffer the most from an 
economic slowdown were the 
hardest hit yesterday. Alcoa 
dropped U% to $7314, 3M lost 
$1% to $49% and International 
Paper shed $1 to $88. 

Transport issues flagged, 
with the Dow Jones Transpor- 
tation Index showing a 21-point 
decline, or 150 per cent, to 
1,604.63. Among the airlines, 
UAL, parent of United, fell 
$2%, to $122% and AMR, parent 
of American, dropped $1% to 
$57%. Roadway, a trucking 
company, was down $2 to $68%. 

Sorprisingly, technology 
issues held up fairly well, 
thawfra to part to bargain hunt- 


ers taking advantage of good 
values created by yesterday’s 
rout The shift to a more posi- 
tive mood also followed Cowen 
& Company's upgrading of its 
Investment rating on Oracle 
Systems, which develops data- 
base-management software. 
The stock jumped $2 to $36%. 

Among other widely held 
Nasdaq issues, Lotus Develop- 
ment improved $1% to $35%, 
WeQfleet added $1% to $22% 

and Atm el climbed $1%. 

On the negative side, Gate- 
way 2000, which sells personal 
computers through the post, 
was marked down $2 to $10%, 
or 16 per cent, after warning 
that its second-quarter earn- 
ings would be “minimal*. 

Canada 


Toronto was undermined by 
the weakness of Wall Street 
end lower flanflilten bonds and 
the TSE-300 Composite index 
was 4253 lower at 3591.60 at 


midday, in volume of 274m 
shares. 

Bollinger fell for the second 
straight day. giving up C$% to 
C$13% as shares in the Tele- 
graph newspapers group in 
London suffered further losses 
after joining the UK newspaper 
price war. 

Mexico 


Equtti.es slipped further by 
midday, tracking the fell of 
Telmex on Wan Street. The 
IPC index of 37 leading shares 
was down 16.01 or 0.7 per cent 
at 254L62. - 

Telmex, which was down $% 
at $56% on Wall Street, shed 
L04 per cent on its L shares in 
Mexico and eased 0.63 per cent 
on its A shares. Telmex 
accounted for ufrn of the 294m 
shares traded by midday. 

Of 61 Issues ehnwg tn g hands, 
declining stocks outnumbered 
gainers by 33 to 7 with 21 
unchanged. 


EUROPE 

Bourses unimpressed by dollar intervention 


1 FT-SE Ac 

iuarli 

:S 

re Inc 

iices 



Jun 24 

Mater etetgra 

Open 

1030 

1190 

THE EUROPEAN SERES 
1290 1390 1490 1690 Okm 

FT-SE Einkacfc 100 
FT-SE Butte 200 

132X42 

135388 

132BL51 

138Z90 

132539 

135297 

132463 132633 
135032 135294 

132598 

135134 

133190 132X34 
133X55 1354.15 



Jen 23 

An 22 Jm 21 

Jm 20 

- Jan 17 

FT-SE Eunaodc 100 
FT-SE Enratax* 200 


133048 

138622 

132390 138X48 

13S797 134533 

130X43 

135190 

T35JL34 

130997 


am on eVHMot MgMqc mb - itBJH an - 1 : 


Central bank intervention in 
support of the dollar was 
unable to rescue bourses yes- 
terday afternoon, unites Our 
Markets Staff. 

FRANKFURT wrote an 
unsettled and gloomy end to 
the official week, down 24 per 
cent and closing with the Dax 
index 16.79 lower at 2,0055L 

There was a brief recovery 
later, but the Ibis-Indicated 
Dax subsided again to dose at 
2,005.07. “Currency interven- 
tion never lasts,” said a broker. 
“It's an emergency signal, a bit 
of a panic measure, and it 
shows that something is radi- 
cally wrong." 

Turnover fell from DM9 4bn 
to DM7btL Activity was domi- 
nated by another sharp fall in 
Deutsche Bank, which ended 
DM1840 lower at DM669.80, 
after DM663. down 84 per cent 
on the week. 

The stock’s outlook has been 
clouded by investor worries 
about the bank's exposure to 
volatile debt markets and 
recent property scandals. 

PARIS fell away sharply in 
line with the trend among the 
late closing markets with the 
CAC-40 index finishing just 
above the 1500 support level at 


150742, a rierttn* of 3240 for 
the session and 1.4 par cent for 
the week- T u rnover on the first 
day of the new account was 
estimated at some FFr3.4bn. 

In spite or tire overall gloomy 
mood same bright spots could 
be found among equities. San- 
aa Improved FFr38 to FFr853 
in reaction to Thursday's news 
that it was buying Sterling 
Winthrop’s prescription drag 
business, while same of the 
companies which have been 
forecasting better earnings 
prospects also turned positive, 
St Gobain up FFr2 at FFr648 
and MlriwUn adding FFr6.70 at 
FFr22140. 

There was more bad news for 
Euro Disney, suspended limit. 
down at one stage before dos- 
ing down FFr3.10 or 19 per cent 
at FFr1250. There has been 
considerable tarfmfnai trading 
in the shares as doubts have 
grown about the afte rmath of 
the ongoing FFrtbn rights 
issue. 

Elf Aquitaine slipped FFr14 
to FFr390 as the group issued a 
p rofits warning. 

ZURICH ended under 
renewed pressure. The SMI 
index fell through support at 
the 2480 level, losing 495 to 


24774, for a 15 per cent drop 
on the week. 

Qyclkals remained vulnera- 
ble, said Mr Frederick Hass- 
lauer at Rank Sal Oppenheim, 
to the threat of earnings revi- 
sions on the b a c k of the weak 
dollar. Sulzer lost SFrl8 to 
SFi912 while Holderbank was 
SFrl7 down at SFtSOO. 

Ranira which had earlier In 
the week halted their long 
slide, turned lower again, los- 
ing an average of 1 per cent, 
although CS Holding fell SFrl7 
or 3J. per cent to SFr535- 

MILAN overcame early 
weakness as local investors 
covered positions ahead of the 
weekend although the Comit 
iratex failed to register the late 
Improvement, losing 8.52 at 
89852, unchanged on the week. 

. Olivetti, however, was a 


UMttr no - iaa22 ao - is«w 

bright spot, rising L45 to 14,455 
following its link with Hughes 
Network System to provide 
di gital satellite mmmimtoi. 
tinwa afrQffs Europe. CQt, the 
holding company, climbed L65 
to 14,525. 

Montedison gained another 
142 or 14 per cent to Ll,490 as 
investors concentrated an its 
t u rn round po tential 

MADRID reacted badly to 
the failure of dollar interven- 
tion, hanks particularly weak 
as the general tatter dropped 
548, or 15 per cent to 299.14, 
24 per cent lower on the week. 

The exception in the hanking 
sector, once again, was 
R ankin tor, where 600,000 
shares were put through the 
market. Ran Vm tar itself buy- 
ing from Santander at 
Ptall500 a share. The shares 


closed unchanged at Ptall.000. 

Elsewhere, the rtecHnn took 
in construction, utilities and 
US favourites like RepsoL, 
down Ptal25 at Pta347D, but 
Teldfonica showed relative 
Strength, oaaing just Ptal5 to 
Ptal,760. 

Brokers said that there was 
strong buying on the run-up to 
the placing of Telefonica Inter- 
national. 

AMSTERDAM was unsettled 
by the currencies turbulence 
with many of its multination- 
als dependent on dollar earn- 
ings. The AEX Index ftahthprf 
at the session low of 381.43, 
down 555 on the day and 24 
per cart an the week. 


Written and edited by WHBara 
Cochrane, John PKt and Michael 
Morgan 


SOUTH AFRICA 

Johannesburg underwent a 
sharp correction, taking its 
lead from weaker world mar- 
kets and the easier bullion 
price. The overall index was 96 
lower at 5492, Industrials lost 
109 to 6,477 and golds Ml 40 
to 4,733. Remgro lost R2 to 
R26 and SAB fell R3 to R8& 


Little to cheer about 
as Irish track bonds 


Tim Coone on the 1994 decline in 


I f fund managers have expe- 
rienced difficulty in track- 
ing down their usual 
equity or bond dealer in Dublin 
in the past week or so, the rea- 
son is straightforward. 

Dozens of dealers from the 
city’s four main broking 
houses have packed their sun- 
glasses, sports shirts and sun- 
blocks, and headed for the 
United States. Along with tens 
of thousands of other Irish 
football supporters, they have 
been yelling “016 014 Old" 
from the terraces of US sports 
stadiums, urging on Ireland’s 
team in the World Cup, rather 
than Irish stocks from their 
trading desks. 

They can hardly be blamed, 
as there has been little to cheer 
about In the Irish stock market 
so far this year. 

Last year’s sustained rally, 
which saw the 1SEQ overall 
index rise 54 per cent to 1589, 
peaked in January at 2582; It is 
now 9.4 per cent down on the 
year to date, and 174 per cent 
down from its peak. The index 
fell another 26.44 to 1,711.99 
last night 

The cause of this, the slump 
in bond prices, has been shared 
with other European markets 
but the bear market has been 
particularly hard on Irish gilts, 
not least because of the wide- 
spread perception that the Cen- 
tral Bank is now preferentially 
tracking sterling rather than 
the D- Mar k in manag ing the 

exchange rate. 

According to Mr Dan 
McLaughlin, ihp chief econo- 
mist at Rlada stockbrokers, 
Irish gQts are now trading at 
150 baas points over German 
bunds, compared to 40 basis 
points just six months ago. 
“There has been a fundamental 
shift in the Irish mar- 
ket . . . ^paling rooms in Dub- 
lin are watching the UK now 
rather than the German mar- 
ket” The focus on sterling and 
the slide in the UK equity mar- 
ket has in turn driven the fell 
in the Irish equity market 
Financial and food stocks 
have suffered the hardest 
knocks in the Irish league 
table. The main financials, 
ATR Bank of Ireland and Irish 
life, whose combined market 
capitalisation comprises 30 per 
cent of the Dublin market 


total, have fared worse than 
average, being more sensitive 
to the performance of gilts. 
ABB is almost 20 per cent down 
from its 1993 high, while Bonk 
of Ireland and Irish Life are 
down some 12-15 per cent 
In foods, which comprise 15 
per cent of the market's capi- 
talisation, Avonmore, Water- 
ford Foods and Golden Vale 
are the companies most 
exposed to current uncertain- 
ties in the dairy industry, fur- 
ther exacerbated by Golden 

Ireland 


ISEQ Overall index 
2400 — 



Vale’s recent profits warning. 
Their share prices stand from 
20 to 40 per cent lower than 
their 1993 peaks. 

Significant exceptions which 
have bucked the downward 
trend are Kerry Group, LAWS 
and G reencore in the food sec- 
tor, ICG the shipping group, 
and Waterford Wedgwood. 
Smurfit is also showing signs 
of recovery as the market has 
begun to take a more favoura- 
ble view of the paper and pack- 
aging industry generally. All 
have made gains on their 1993 
highs. 

But, being June, it is just 
half-time, and Dublin brokers 
who have stayed at home are 
confident that ground lost in 
the first half will be made up 
in the second. Mr Robbie KeHe- 
her, head of research at Davy 
stockbrokers, says: “It doesn't 
require a huge rally in bonds, 
just stabilisation, to get the 
equity market rallying.” 

Mr Brendan Lynch, senior 
economist at BCP brokers, 
agrees. “The European bond 
markets are ready for a turn. 
They have reached an oversold 


Dublin equities 

position. A steadying of the 
bond market will set the base 
for the equity market to gain 
on economic performance and 
improved earnings.” 

Encouraging economic fore- 
casts from a range uf analysts 
give cause for optimism for 
corporate earnings tliis year. 

One of tbe latest, published 
by Good body stockbrokers this 
week, points to strong export 
growth and a recovery in 
domestic demand which will 
raise real GDP by cluse to 5 per 
cent in 1994. "This year is 
likely to see the beginning of a 
boom period of balanced and 
sustained growth which is set 
to last for at least five years,” 
Goodbodys predicts. Inflation 
is nut expected to rise signifi- 
cantly, adding to the good 
news for the equity market. 

On similar calculations. Mr 
Kelleher believes the ISKQ 
index should advance by some 
15 per cunt to around 2,100 by 
the year-end. He says that the 
market is currently trading on 
11 times 1994 earnings, and 
"less than 10” on prospective 
earnings for 199T.. “In relative 
terms, the Irish market still 
looks cheap,” he says. 

While the remaindur of 1994 
and 1995 may herald a renewed 
rally, the months -.ihead will 
also bring a number of changes 
in the way the market oper- 
ates. The separation uf the 
Dublin and London stock 
exchanges, originally planned 
for 1993, Is now anticipated for 
the end of 1994. Legislation 
necessary to bring this into 
effect is to be presented in the 
Dail this autumn. 

S econd, the National Trea- 
sury Management 
Agency (NTMA) hopes to 
have a market-making system 
for gilts in place by next year, 
for the first time since the mar- 
ket was established 200 years 
ago. The aim is to achieve 
greater liquidity in Irish gilts, 
and thereby reduce govern- 
ment borrowing costs and 
yield differentials relative to 
other European gilts. Insofar 
as equity prices are currently 
being driven by gilt prices, 
smaller gilt price differentials 
should also mean smaller p/e 
differentials with other Euro- 
pean equity markets. 


ASIA PACIFIC 


LONDON EQUITIES 


Nikkei down 1.3 per cent on fears over yen 


L1FFE EQUITY OPTIONS 


RISES AND FALLS 


Tokyo 


Further worries over the yen 
kept most investors absent and 
the Nikkei index lost ground 
on technical selling amid low 
volume, writes Endko Terazono 
m Tokyo. 

Arbitrage selling depressed 
the 225-issue by 273.46 points, 
or 14 per cent to 20,766.75, off 
3.4 per cent on the week. Vol- 
ume thinn ed to 350m shares 
against 389m. 

The index opened at the 
day's high of 20,99840. but 
soon declined on arbitrage sell- 
ing and index-linked trading 
which overwhelmed buying of 
blue chips by investment 
trusts and public funds. The 
index hit a low of 20,755.45 in 
the afternoon. 

The Topix index of an first 
section stocks lost 8.17 to 
1,673.07 and the Nikkei 300 
closed down 2.08 at 30359. 
Declines led advances by 677 to 
364, with 154 unchanged and, 
in T/widnn, the ISE/Nikkei 50 
Index rose 0.67 to 1582.66. 

A no confidence vote by the 
opposition liberal Democratic 
Party against the minority gov- 
ernment also unnerved inves- 
tors. 


Banks were lower on arbi- 
trage selling. Industrial Bank 
of Japan fell Y30 to Y3540 and 
Mitsubishi Bank declined Y20 
to Y2.660. 

Daiei, which attracted buy- 
ing on Thursday following 
reports that it would start a 
joint retailing venture in 
China, lost Y60 to YI570 on 
profit-taking. 

Large capital steels also 
declined on profit- taking. Nip- 
pon Steel fell Y5 to Y357. b£ 
Mitsubishi Heavy Industries 
gained Y3 to Y795 on invest- 
ment trust support. 

The yen’s late rise eroded 
earlier gains posted by high- 
technology stocks, which woe 
supported by investment trust 
led buying. Hitachi closed 
unchanged at Yl.040, but 
Fujitsu lost Y10 to Yl,Ua 

In Osaka, the OSE average 
fell 79.19 to 23,24258 in volume 
of 28 l&h shares. 

Roundup 

A weak US dollar and uncer- 
tainties over Interest rates 
continued to preoccupy the 
region. 

HONG KONG ended lower 
on the US dollar although local 
bargain-hunting was encour- 


aged by optimism cm the new 
airport. The Hang Seng index 
closed down 85.75 at 858L00, 
24 per cent lo wer cm the week. 

KUALA LUMPUR recovered 
with the return of foreign buy- 
ing. The benchmark ELSE 
Composite index closed up 
1143 at 1,01543, still 24 per 
cent down on the week. Vol- 
ume was thin, reflecting inves- 
tors’ caution over the market’s 
direction after falls on Wall 
Street overnight 

TAIPEI moved higher on 
buying in the paper and plas- 
tics sectors, although brokers 
that tint upsurge might 
not last long with investors 
short of confidence. The 
weighted index closed 68.48 
higher at 553942, 34 per cent 
lower on the week. Turnover 
fell to T$4756hn from Thurs- 
day’s T$52A4bn. 

SYDNEY’S trading was 
inflated by tbe expiry of 
options, the All Ordinaries 
index closing 34.2 lower at 
2,0175, down L6 per cent on 
the week as turnover soared 

from A$S79m to A$L46bn. 

SEOUL ended lower on a 
strike by railway workers, 
although some blue chips 
staged a rebound from earlier 
declines as the composite index 


fell 6.12 to 929.45, up 14 per 
cart on the week. 

Kepco gained Won200 to 
Won26500 and Korea Mobile 
Telecom advanced Won900 to 
Won313500. Volume was 47m 
shares against 624m on Thurs- 
d ay. 

WELLINGTON lost more 
ground in the intern ation al 
investment gloom, the NZSE-40 
Index ending 2144 lower at 
2538.77, down 25 per cent over 
the week. Telecom was hit 
again by arguments for invest- 
ment in fixed interest securi- 
ties, as local and world interest 
rates continue to rise, as well 
as by sefling on Wall Street 

MANILA fell through the the 
2,800 support level, sparking 
fears of a downward spiral if 
no positive factors emerged. 
The composite index closed 
3351 lower at 2,789 JL4, down 34 
per cent on the week as most 
blue chips fefi cm profit-taking: 
Turnover more than doubled to 
L34bn pesos, compared with 
the previous 65448m. 

JAKARTA closed lower in 
sluggish trade, with overseas 
investors sidelined mainly on 
concerns over US interest 
rates. The official index ended 
249 lower at 46847, 14 per cent 
down on the week. 






ON* 


JM 0? Jm 

Jd Oct Jan 

AtaHjVJ 

540 2TM43M - 

8 18M - 

rsi ) 

509 

■ 2DM - 

37)4 43* - 

MQ* 

220 

MZ7M31M 

3M 8 T3 

PZ32) 

240 

• 16 21 13M 17M 23 

ASOA 

a 

5 8M 8 

2 5 5M 

rsj 

60 

1 3 4M 

8 TIM 12M 

Britton 360 

34 37 <2 

5M 14 20M 

f374 ) 

380 

8 21M 27M 21M 29M 35H 

SMfldBA 

390 

18 28 3BM 

12 S 31 

(TOI) 

420 

S 15 24 31M 42 49 

Boat! 

SOO 30M45M 53 

8 IS 22 

fS21 ) 

SO 

5M 19M28M 

33 41 48)4 


FT- ACTUARIES WORLD INDICES 


JaMy compBed by TMe FtaancW Times IM, 
NATIONAL AM) 

RBQJONAL MARKETS - — 7“ 

Figures ki parentheses US Dey*s 

show number at ftres War Change 

a t stack IntfcM % _ 


Goldman. Sachs a Ca and N&West Securities lid. In con |u nctlon «0h the tnaOua of Actuaries and tte Faculty of Actuaries 


— THURSDAY JUK 23 
Pound i fKfni i Gross 

Staring Yen DM Cteraney K die Oh. 

Indrec Index Indax on day Yletd 


WBOBDAY JUNE 22 1964 DOLLAR INDEX 

US Found . Load Year 

Doftor Staring Yen DM Curency 52 weak 52 week- ego 
Index Index Iftgrt Low (appro*} 


towfcM- 
Austria 0 7] — . 
Belgian p7) — 
Canada (106)- 
Denmaric (33).. 
Finland P4)_- 
Franco (97) . 


-isan 
_ 16057 
_ 164.74 
-12033 


.25608 

.14150 

-163.48 


Gamuny (50) — 
Hong Kong (56)- 
Merid (14). 


Jopan (46$-~ 
Motayela (96) . 
Mexico (IS)- 


( 27 )- 


136.15 

.—385-56 

186.19 

8532 

168*21 

476.13 

_ 1909.88 
19643 


New Zeeland (14). 
'P3J. 


—67.97 

.184.06 


Singapore (44) 

Soutn Africa (59) — 

Spain (42) ■ 137JJ2 

Sweden (38) 

Srttzoriand (47)- _ 

E) Un&ad Kingdom (205) 184 T? 

USA (510) -18326 


-08 

16X52 

10X51 

14148 

15391 

04 

358 

171.16 

18X94 

10X04 

14242 

15X04 

18X16 

13010 

13157 



22 31 M 34 

06 

17X96 

11X46 

16063 

15027 

OS 

1.06 

179.16 

17297 

11454 

14X09 

14853 

19641 

14250 

14855 

Opta 


XI 

18X74 

10X33 

13754 

134.19 

03 

4.12 

18456 

15X97 

10451 

137.02 

13X77 

17657 

142.48 

14358 




-02 

11X83 

7X8S 

10291 

12352 

-03 

2.74 

12354 

11X27 

7853 

10250 

12454 

14X31 

12146 

13091 



1.4 

247.03 

16392 

21X73 

21390 

1.T 

194 

252.76 

24453 

16088 

21033 

21X97 

27X79 

20758 

21X20 



08 

13X43 

9054 

11X04 

15X43 

19 

(ion 

14049 

13554 

8842 

11X91 

15X33 

15X72 

S&Si 

8593 




07 

157.49 

10451 

13698 

14070 

09 

019 

16294 

15X73 

10393 

13X00 

13X48 

18X37 

14X60 

15293 




IS 

13023 

8X42 

11297 

11297 

14 

193 

13353 

12692 

8499 

111.12 

111.12 

14757 

10759 

10X40 

Bn acre 

420 43H 81 71 

12 29 38M 

1.0 

36293 

233.73 

304.75 

36X79 

19 

397 

36198 

34948 

23040 

30192 

36X18 

60X56 

27142 

28X17 

P<45 ) 

4G0 2DM41H 84 

38 4B 57 

02 

17048 

11X05 

1S592 

17X48 

09 

392 

16X72 

179.30 

11X21 

16454 

17399 

20993 

15553 

16X69 

BAT Ml 

300 20H 3SM 44M 


2S 

8291 

5456 

71.13 

10040 

29 

157 

8349 

8061 

SX14 

8848 

9X14 

97.78 

6758 

8899 

C3721 



IS 

16015 

10697 

13856 

10X27 

2.1 

072 

18357 

15792 

104.11 

13X11 

104.11 

16694 

12454 

142.06 




-1.4 

45791 

30X79 

39X10 

47X39 

-14 

1.72 

481.63 

46X00 

30X56 

40X79 

47996 

62153 

31251 





-05 

184093 

1221.16 

1692.16 

706951 

-09 

1.10 

1B1X43 

1852.16 

122199 

160X38 

708493 

264756 

148158 

140020 

1 i 



19 

19198 

12790 

16X84 

16X18 

■ 19 

346 

18696 

10X18 

12597 

16X90 

181.21 

20743 

16422 

16X49 



1.6 

6X49 

43.48 

6X66 

6099 

SO 

392 

8690 

6459 

42JB 

6658 

5X77 

7759 

4850 

4X03 




2.1 

17795 

117^ 

15X44 

17492 

24 

190 

•18099 

17456 

114.75 

15052 

17021 

20X42 

15051 

15259 

m») 


03 

32X08 

21X38 

282.12 

23X33 

02 

1.77 

33747 

32X82 

21450 

28092 

237.74 

37852 

24246 

24X05 



-06 

27195 

18008 

234.77 

281.16 

-05 

2.17 

28397 

27X58 

18037 

23550 

29258 

28458 

17S53 

19298 

r«kn flr 

HO 384ZM 35 

21 33M41H 

1.6 

13298 

8X18 

11498 

13899 

15 

4.16 

13X89 

131.00 

8X37 

11291 

13X98 

15X79 

11X33 

127.73 

CB88) 

600 7M 23 34 

56 64 TIM 

ID 

19X96 

132.02 

17Z14 

23X37 

1.1 

1.70 

20498 

19792 

13009 

17007 

232.72 

23196 

16355 

16X62 

direst 

<20 »Stt49M 

6 13 17 

08 

15X89 

10199 

13297 

13346 

19 

152 

15X19 

152.72 

10069 

13153 

132.10 

17850 

12446 

12X33 

(*438 ) 

460 9 WH 29 24M33H37H 

-04 

17X02 

11X13 

154,02 

17X02 

-as 

492 

18652 

178.11 

11X09 

15498 

179.11 

21456 

17032 

173.48 

es 

250 17M22M26M 5M 10» 14 

-08 

17X67 

11794 

15295 

16X36 

-08 

292 

184.74 

17890 

11759 

15X73 

184.74 

19X04 

17X65 

181.15 

fZ74) 

200 EM12MMM17H 22 25 


BP 380 18 SO 37 9 IB 23M 

r»5 ) 420 5% 18 23*27)4 35*40* 
H8W 130 SM 12 1SM SM 9* 12 

ns ) 140 3 • 11 12 I5M 17* 

Bare 400 n SZ BBM 4M IBM 24 

(*<88 ) S00 14K2M 33 2TM2BM 45 

QMIMi 390 34 47 54 5h 1ZM 18 
r<12 ) 425 11H — - 21 - - 

Caitaridi 480 28 4m 58 0 IBM 24* 

(*473) 500 8H 2129M28M38M 48 

Corea Otar 400 47 - - 3 - - 

r« 2 ) 500 28 3 «» roam » 

a 750 23 38W 54 10 30 47 

(*780 ) BOO SH IBM 32 54 72 71 

HngMar 460 3 m 43 SB* SM 10 25 
(*«71) SOO 11M2ZM33M 2B 30 48 

land Saar 560 47 89 M 2 7 12H 

PB0 ) 000 11 25M 32tt 17H 25M 32 

IkdilS 380 MSN B 15 19)4 
(-393 ) 420 3 12H 18 28*32)4 30 

MBM 420 30 3B 48 B 16 20M 
r*48 ) 460 B 18 28)4 25)4 38 42 


390 MM 32 38)4 9 10 2BH 

{*385 ) 420 S 18 2S 28)4 35 43 

SM Taos. 650 4314 5 0 4 82 3)4 KM 21 
(DB4 ) 700 10 24)4 34 23 38M 43H 

Stareharee 200 14 2SM » 4H 0 13 
[•2)0) 220 4 IBM 15 16M20M 24 

78 6 — —4K-- 

88 3M--7H-- 
95D20M 56 S7 16 2BM 36 
1000 8ft 31 48V4 47 56H 63M 
8S0 SB 68)478)4 3 IB 22)4 

700 1814 35 47 IBM STM 44H 
mtaMigiiwia 

Grand tht 360 28)4 38 45)4 8 17 23)4 

(-375) 300 tl 23)4 31 26 34 39M 

Ladmfce 140 BK 28 2M4 » 7 BM 

(*1SS ) 100 8M MM 1IH 10M IS 18 

5M 14M 17M 




_ 

Cte 



■Pda 

Opflan 


Ate 

No* 

Fab 

Ate 

Nm 

Fob 

Hreaaa 

220 

19M 

23M 

27 

2M 

7M 

SM 

f235) 

240 

7 

13 

M 

10 

IBM 

ISM 

Iran 

134 

19 

23 

- 

3M 

7 

- 

n«) 

154 

6 

12 

- 

12M 

16 

- 

lacs Mi 

160 

IBM 

IB 

ISM 

6H 

14 

16M 

n»i ) 

180 

3K 

8 

11 

21 

28 

29M 

Pft 0 

800 

27M 

42 

54 

20M 

41 

44M 

r«oo) 

S>0 

BM 

21M 

33 

54 

73M 

78 

Pttegkn 

150 

CM 

IBM 

2ZM 

e» 

11 

I3M 

ns<) 

100 

4M 

9 

13 

IBM 

22M2SM 

PmdcnH 

280 

21 

2BM 

32 

BM 

14M 

18 

rzso) 

300 

SM 

IB 

22 

ISM 

25 

28M 

RTZ 

000 

42M 

64M 

SOM 

IBM 

35M 

43M 

fBlB) 

850 

16M 

3BM 

86 

44 

63 

59 

Radsd 

460 

31 

48M 

S3 

11 

23M 

2BM 

r<77) 

SOO 

12 

2SM 

33M 

32 

47 

51M 

Fkiyd hsca 

240 

t3M 

22M 

27 

9 M 

19M 

21 

C241 ) 

200 

BM 

14 

18 

23 

32 

32M 

Tescn 

220 

14M 

21 

26 

BM 

13 

16 

r22«» 

>40 

S 

11M 

IBM 

IBM 

24M 

27 

Wtteona 

480 

38 

58 

62 

SM 

19M 

27 

r< 82 » 

500 

ISM 

33M 

e 

29 

38M 

47 


325 

IBM 

26 

— 

8 

16M 

- 

rs3i j 

354 

4M 

12H 

- 

27 

34 

- 

Optka 


JM 

Oct 

Jan 

M 

Oct 

Jan 

BM 

850 

48 

70 81M 

7M. 

20M 

28 

ran j 

000 

17 

41 

S3 

ZBM 

43 

51 

IknreVfr 

420 

2fM 

37 < 

IBM 

SM 

14M 

22 

r*3< ) 

480 

S' 

16M2BM 

29M: 

35M 

44 

Opto 


sap 

Dae i 

ter 

sap 

OtC 

Ur 

mj m 

360 

39 ■ 

OH SIM 

7M 

12 

1054 

nas) 

390 

2SM 

28 34M! 

2DMZSM 

33 

Amdrad 

25 

4M 

S 

8 

2M 

3M 

4M 

rz7) 

30 

2M 

3M 

4 

5» 

6M 

7M 

Bardaja 

500 

3B4BM 

58 

17 

24 

33 

rsia i 

560 

IBM 

25 

34 

47 

52 

61 

BteChda 

200 

w: 

BM 

41 

9 

13M 

15 

rv«) 

288 

18 

2S3BM 

IBM 

23 

25 

HU Gas 

240 

24 2SH 

30 

e 

12 

I3M 

r253) 

2S0 

12 

l«M IBM 

ISM 

2i : 

24M 

Dtara 

180 ' 

18M23M 

77 

12 

14 

17 

H0O) 

200 

8M 

IB IBM ; 

Z2M 

25 

28 

Wteten 

140 1 

21M 

24ZBH 

3M 

5 

7 

^63) 

150 

9 

13 

W 

12M 

I4M 

18 

lotto 

120 

13 ' 

I7M 

21 

7M 

11 

14 

rasj 

130 

8 

13 

16 

13 

16 

19 

Ml fewer 

390 

36 

43 

60 

13 ' 

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23 

r406 ) 

420 

ism 

27 34M 

a 33H : 

J7H 

sot fewer 

330 : 

2SM30M 

X 

17 22M 

26 

(*M2) 

380 

12 

17 

22 34M37M42M 


110 ■ 

12M 

IS IBM 

4 

SM 

7 

nisj 

120 

BM 

9 11M 

8 

11 

I2M 

Forts 

220 ■ 

F9M 

23 

2S10M 

15 ■ 

I7M 

(*224 ) 

240 ' 

I0M 

14 18M2ZM 

27 

29 

lane 

140 ■ 

IBM TBM21M 

11 

IS 

17 

D42) 

160 

7M WM 13M 

24 28M 

30 

Ttara aft 

1000 

86 78M 

83 

49 64M 

77 

non) 

1000 32M 5BM TOM 70M 

B4 

107 

TS8 

200 

IB 20M24M 

11 

13 

18 

r204) 

220 

7 

12 ISM 

41 41M 

44 

Itnteas 

200 

24 

28 

31 

8 

9 

12 

r2i7) 

220 

12 

17 

21 13M1BH 

22 

wzmAM vm 

550 71M 8BM 9BM IBM 

28 33M 

r599 ) 

600 41M 

58 

89 37M51M 

57 

Often 


M 

Oct . 

ton 

Jd 

Oct 

J» 

<9am 

500 

43 SBMB3M 

9 29M 

37 

r532 ) 

560 13M30H 

30 

30 

S9 6SM 

BBC 75pt2t 

650 

50 7BMB3M17M 

4 55M 

f674 ) 

700 

22 SUM 

70 41K 

69 

61 

Ram 

4290 

21 2BM 

— 

12 23M 

- 

P427q 

437S 

14 23M 

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18 Z9H 

- 

OpOre 

i 

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tar Fab i 

tag 1 

are ! 

Feb 

fkftHUpca 

160 

2B25MZ8M 

3 

8 IBM 

H74) 

180 

7 14M1TM 

12 17M20M 


EUROPE (720)— 
Non8o(n6}_ 


Padflc Sarin (730). 


-18265 
-20065 
,17362 

Bao-Padflc (1470) 

Noith America (525) 17M4 

Europe Bt UK (615) ««■ 

Pacific Sc Japan (281) 

Worid Ex. US (1053) 

Worid Ex. UK (1067) In.W 

Worid EX. So. A* (2113 

Worid Ex. Japan (1703) 17&17 


05 

IS 

1.4 

1.0 

-CL7 

1.1 

-ai 

as 

04 

a* 

-02 


15651 

183.62 

16840 

18248 

17348 

14152 

29543 

18X37 

185.71 

168,17 

1724* 


104.12 
1 23.40 
11076 
10748 
11446 
34.18 
156L10 
10X41 
10948 
11027 
11446 


13X76 

16742 

144.40 

14046 

14X75 

122.70 

20X53 

14144 

14347 

143.77 

14847 


14848 
19 747 
11541 
12843 
17947 
13040 
219.06 
132X3 
14541 
14744 
17248 


05 

14 

14 

14 

-0.7 

14 

04 
14 
08 

05 
-04 


X14 

141 

144 

149 

242 

250 

9» 

140 

246 

248 

246 


16201 

19843 

17048 

18742 

18045 

14X73 

24440 

18746 

17145 

171.84 

17057 


16042 

191.77 

18448 

18145 

174.70 

14070 

23SLB7 

182.18 

16643 

18540 

17346 


10X12 

12043 

10077 

10031 

11X17 

92.78 

ISSlSO 

10091 

10940 

10948 

11440 


13441 

16549 

14240 

13848 

15X57 

12147 

20X30 

139.76 

14260 

14249 

14042 


147.77 

19546 

11345 

12747 

18080 

12841 

21038 

13044 

14449 

14666 

17249 


17058 

22060 

173.75 

17078 

192.73 

15747 

29621 

17241 

17068 

17056 

19620 


14148 

15542 

134.79 

14086 

1754? 

12247 

18238 

14031 

16449 

18021 

18X72 


142.73 

15742 

14642 

14440 

17747 

12X84 

184.03 

14541 

15449 

15021 

10X72 


- UMatytag wanly price. Pm n Wnm taown am 
tMBd on cjoaha a iW ai ca i 
Jim 24, rSE emOadiEMMi 0 *f IS JOS 
Put* 21494 


FT GOLD MINES INDEX 


mu wmu Ufa. (2173 17 013 03 18X82 11070 14443 14040 OS 246 17263 10057 10081 14346 14743 17097 16036 T6Q3S 




Jn % tte 
a aate 

Jh Jto 1 * 

22 2 l aga 

Waste 
jMri % 

S«aak 

Wgb Law 

Write* 

itatepB) 

200490 - 0 » 

201 X 31 202 X 36 1744.0 

UB 

2367.40 152296 

ttantate 

Itariraa 

290 X 54 -OB 

2987 X 1 287 X 09 224112 

OB 

344 X 00 19 CB 23 

n 

2507.73 -22 

26 S 5.11 257 X 11 188 X 73 

199 

301 X 89 169 X 18 

Note Antes ( 12 ) 

163621 OlO 

163 X 31 167 X 38 158223 

064 

wwnen 1363.00 


Cowrit. Tim Hn wttM 
• —lit pricaa mm inainrinNn tor nan 


)«M md Ca. nl NaOMM Securtton LMmL 1987 


Copyright. Tim 
RguaalnbacMi 
PirlinranrOridH 
Lriret prim 


Than Umud IBM. 

r rente r at norapario o . Bnie U6 Deten. Brea IMre* 100080 31/1202. 
Mae June 24s 2323! dungs; *0.* potato; Yore ago: 10SJ T Ratal 

tornbedten. 



fl 

2 

Ridey 

Ms 

Same 

( 

Btoee 

Jn the nm 
Falla 

ok — ~ 
Same 

British Funds 

4 

60 

8 

125 

181 

54 

Otter FUed Interest 

0 

0 

15 

21 

23 

31 

Mineral EalmcMon 

24 

103 

72 

222 

388 

387 

General Manufactuera 

40 

314 

306 

399 

1.092 

1.309 

Consumer Goods 

18 

9S 

81 

105 

373 

482 

Servfcea 

23 

233 

251 

269 

774 

1.496 

utattaa 

3 

34 

8 

45 

137 

47 

Bnancfcris 

26 

213 

134 

286 

726 

853 

Investment Trusts 

1 

344 

124 

301 

1.050 

993 

Others 

4 

92 

33 

99 

390 

167 

Totals 

141 

1,488 

1,032 

1.872 

5.143 

8.324 

Oats based or Bioae eompnVea toted on ttia Iredan area Soita 




TRADITIONAL OPTIONS 






Ftrel Daelngs 

June 13 

Last Dedraauoru 


Sept 15 

Last Dealings 

June 24 

For seUtomoni 



S<** 26 


Cate KawB System. Reutera. Tontkbre. Put* TotnUno, Warburg (SO). Purs ft Crfv 
TMegnph. 


LONDON RECENT ISSUES: EQUITIES 


Issue 

ra*e 

p 

Amt 

pant 

up 

ML 

tap 

ICmJ 

1994 

Hlgft Low Stock 

rsria» 

pnea 

P 

*/• 

Net 

riv. 

on. Ora 
cm. >1d 

PTE 

not 

§120 

FJ». 

6X1 

123 115*2 Acre, itambie 

121 

-1 

W3.74 

2.6 

35 

122 

161 

FJ». 

4X4 

166 

160 Amoy 

166 


LNI.Q8 

Qfl 

5-3 

3X1 

255 

FJ>. 

14X3 

267 

2S6 Aigant 

261 

-1 

- 

- 

- 

- 

100 

FJ>. 

312 

104 

100 Baftta Grid Shn C 

10CF2 -2 1 ! 

- 

- 

- 

- 

105 

FJ>. 

X44 

110 

105 Bhxxnstiwy Pb 

110 


WN2S4 

? 7 

13 

112 

§150 

F.P. 

2X8 

154 

140 Brew*) OotcNn 

140 

-8 

LX8 

22 

52 

102 

- 

FP. 

21X7 

6t 

67 CAUAS 

72 

-1 

UN3.75 

0.7 

65 

34.1 

- 

FP. 

1049 

112 

106 CLS 

108 

-1 

- 

- 

- 

- 

150 

F.P. 

17.4 

160 

158 CPL Aramas 

160 


LN3.0 

2.4 

22 

152 

§143 

FP. 

12.0 

170 

143 Cassefl 

163 

-5 

WX9 

- 

XO 

102 

100 

FP. 

5X8 

104 

98*2 Chesterton Inti 

99- 


RN33 

1.8 

42 

14.0 

- 

FP. 

1X3 

38 

34 Oeme Comma. 

Xll2 


- 

- 

- 

- 

130 

FP. 

4X1 

143 

133 Denfty 

138 

-2 

WX1 

28 

22 

1X4 

- 

F.P. 

7X4 

83 

90 Fleming tnrian 

91 - 

1*2 

- 

- 

- 

- 

- 

FP. 

7.73 

50 

42 Do Wai rants 

48 


- 

- 

- 

- 

225 

FP. 

10X3 

233 

225 mtermerioie 

232 


LN93 

2.1 

53 

XI 

- 

FP. 

682 

07 

94 Pson Fry Euo 

96 


05P 

- 

XS 

- 

- 

FP. 

- 

77 

64 JF H Japan wns 

GS 

-4 

- 

- 

- 

- 

200 

F.P. 

1608 

233 

200 •SLondon Cfabs 

227 

-3 

WIIP2 

1.6 

6.6 

112 

120 

F.P. 

342 

130 125*j Noreor 

127 


W456 

2.5 

45 

10 B 

•a 

FP. 

24X8 

131 

113 Redrew 

113 

-6 

WN2.7 

2.5 

JO 

14 4 


FP. 

44 j6 

92 

89 Scudder Latin 

89 


- 

- 

- 

- 

- 

FP. 

XQ2 

44 

42 Do Wia 

43 


- 

- 

- 

- 

100 

FP. 

24.8 

99 

96 Stikes HY Sow C 

99 


- 

- 

- 

- 

595 

FP. 

1X9 

113 

108 Sparge Cons 

111 


LI. 6 

1.6 

1.8 

432 

ISO 

FP. 

54J> 

150 

139 VC1 

139 

-2 

wre.s 

Ifl 

4.9 

124 


RIGHTS OFFERS 


Issue 

price 

P 

Amount 

P«rid 

IV 

Latest 

Rrenre. 

date 

1804 

Mgti Low 

Stach 

Ctaamg 

price 

P 

♦or- 

50 

NB 

577 

6pm 

5pm 

Briton 

5pm 

J 7 

240 

NI 

2W7 

130pm 

30pm 

Edos 

100 pm 

-16 

- 

W 

17/B 

235pm 

58pm 

Euro-Dre«y 

58pm 

-42 

265 

Nl 

14/7 

65pm 

3 1 2pm 

Euraoame) 

10 pm 


425 

Nl 

S/7 

36pm 

fipm 

Evans Habhrer 

5pm 


425 

NS 

1/B 

89pm 

GSpm 

Ftew Prw» 

66pm 

-3 

100 

M 

ssn 

11 pm 


NSM 

'*pm 

-4. 

9 

Nl 

3/8 

kpm 

4»pm 

Ptmmuri 

^•pm 


130 

Ni 

14/7 

26pm 

21 pm 

Ricardo 

21pm 


5 

M 

21/7 

9pm 

6pm 

Standard Ptai 

6pm 

♦1 

250 

Ni 

27/7 

38pm 

14pm 

Wnaarf 

20pm 


73 

Ni 


3pm 

«4pm 

Wates C3ty t* Lon 

*4 pm 



2240.6 

2201.5 

2311.8 

2205.9 

231X1 

2264.5 

271X6 

2240.6 

4.40 

427 

4.34 

427 

423 

4.09 

4.46 

3.43 

XSS 

5.B2 

5.78 

621 

5.62 

425 

595 

X32 

17.00 

1X28 

1X41 

1X37 

1X34 

2X41 

3X43 

17.09 

1X61 

1X01 

1X16 

19.05 

1X00 

24.45 

3X80 

1881 


FINANCIAL TINES EQUITY INDICES 

J une 24 June 23 June 22 Jraw 21 June 20 Yr a go *H) gh *Uaw 

OrcBoary Shrew 
OrtL dv. yield 
Earn, yfet % M 
P/E ratio net 
P/E ratio nl 

-For IBM. OnSnoty Stare Max teco uu nyfltaorr Ntfi 27138 2/02/94 low *9 * MhWO 
rr Onftrey Share Mb tare tea vm 6. 

OnSnaty Mere hourly changes 

Open OOP ItLOO IIjOQ 1240 1340 14J0 1X00 1X00 Mflh Lore 
2272.8 226X7 2259.8 22S84 22534 2257.7 22514 2281.4 2247.9 2272.8 2239.4 
Jra»24 Jtxw23 June 22 June 21 June 20 Vr ago 

SEAQ bagatas 71404 21472 20449 21.724 24488 27,198 

Eqrfy trerawre (Qr^f - 14654 12SX8 826.4 85X5 1159.5 

Equity bragairwt - 28,014 22478 23,827 25468 31.400 

Shares traded (ml)t - 6634 4709 3914 35X2 4534 

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FINANCIAL times WEEKEND JUNE 25/JUNE 26 1994 


LONDON SHARE SERVICE 


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24 



FINANCIAL TIMES 

Weekend June 25/June 26 1994 


brother. 




TYPEWRITERS * WORD PROCESSORS 
PRINTERS • COMPUTERS • FAX 



Group will vote at AGMs against directors’ three-year deals 

PosTel draws line on contracts 


THE LEX COLUMN 

Passing the buck 


By WflDam Lewis 

PosTel, the £20 billion investment 
managemen t group, is to vote at 
company annual meetings 
against the re-election of 
directors who have rolling 
employment contracts longer 
than two years. 

The decision comes after con- 
cern was expressed over large 
pay outs to di rector s when they 
are forced to resign. Directors 
with three-year rolling contracts 
can receive up to three times 
their basic salary if they are 
forced out 

Implementation of the policy 
win begin “with the AGM proxies 
we start Effing in on Monday," 
Mr Alastair Ross Goobey, chief 
executive of PosTel, said yester- 


day. Among directors likely to be 
Immediately affected are those of 
several privatised electricity and 
water «mpgnip« which are still 
to hold their AGMs. 

It is also likely to lead Po£TeL, 
which handles investment for the 
Post Office and BT pension 
funds, into conflict with the 
directors cf rival fund manage- 
ment organisations. For cramplp 
Mr Mick Newmarch, chief execu- 
tive of Prudential Corporation, 
has a three-year service contract 
against which. PosTel wiD vote. 

Mr Ross Goobey, said yesterday 
he hoped other institutional 
shareholders would back his 
campaign. However, Mr Michael 
Sandtend, ffrwrf investment man- 
ager of Norwich Union, said: “We 
have not been supporters of con- 


tracts which are three-year 
rolling contracts but we have no 
current plans to follow PosteL" 

The action was also heavily 
criticised by those directors who 
are likely to be targeted. Mr Peter 
Hunt, chairman of Land Securi- 
ties, dpfpnftert three-year rolling 
contracts. 

They are “normal and best cur- 
rent practice,” he said. "You 
have to have three-year contracts 
to attract and retain top people, 
otherwise you would have to pay 
higher salaries. Three years' 
notice works both ways.” 

FosTel's move follows last 
May’s letter from Mr Ross 
Goobey to the chairmen of FT-SE 
100 com pani es in which be said: 
“PosTel will vote against the re- 
appointment of any director who 


is on a rolling contract of more 
t>ian 12 months.” 

Mr Ross Goobey said yesterday 
a n umb er of companies had 
recently reduced their contracts 
to two years. One-year contracts 
remained bis preference but “to 
vote against two-year contracts 
would send inappropriate signals 
to those boards of directors who 
have shortened contracts from 
three years.” 

PosTel stressed that only in 
“exceptional circumstances” 
would it not vote against an 
offending director’s re-appoint- 
ment It said it would normally 
vote against the re-appointment 
of any director with more than a 
two-year rolling period of notice. 


See Lex 


Independent plans price war protest 


By Kevin Brown, Raymond 
Snoddy and David Wfghton 

Mr Andreas WMttam Smith, the 
main founder of The Indepen- 
dent, plans to go to the Office of 
Fair Trading next week to accuse 
Mr Rupert Murdoch's News Cor- 
poration of predatory pricing by 
reducing the cover price of The 
Times to 20p. 

The renewed accusation that 
Mr Murdoch is trying to drive 
other papers such as The Inde- 
pendent out of the market 
through such tactics was backed 
by Mr Robin Cook, the shadow 
trade and industry secretary. 

He wrote yesterday to Sir 
Bryan Carsberg, the director- 
general of fair trading, urging 
him to investigate the national 


newspaper pricing war. 

As the row over the price-cut- 
ting intensified, the Stock 
Exchange said it had found no 
evidence that last month’s sale of 
19.5m shares worth £73m in The 
Telegraph group by its proprietor 
Mr Conrad Blade had any con- 
nection with this week's cover 
price cut of The Daily Telegraph 
from 43p to 30p. 

The investigation had been 
asked for by the institutions 
which bought the shares, now 
worth £3Gm less because of the 
cover price cut Telegraph shares 
fell another 17p to 332p yesterday 
compared with the price of 587p 
at which Hollinger, Mr Black's 
nsmn/iian holding company, sold 

fhft shares 

In the national newspaper 


industry, it became clear yester- 
day that few, if any, other 
national newspapers plan to 
enter the price-cutting battle - at 
least for the time being. 

The exception is The Indepen- 
dent which may soon reduce its 
price from 50p. The rise that took 
It to that figure came at the time 
of the initial Times cut from 45p 
to 30p and is now acknowledged 
as a mistake. It is likely to go to 
45p, in line with The Guardian, 
following pricing experiments by 
The Independent which 
suggested a significant circula- 
tion boost at that figure. 

The paper first complained to 
the OFT about predatory pricing 
last September when The Times 
went to 30p - a complaint that 
was rejected. The company feels 


its case is much stranger now. 
Mr Matthew Symonds, the 
paper's executive editor, said yes- 
terday: "If this is not predatory 
pricing, I don’t know what is.” 

When The Times was at 45p. 
Mr Symonds said, the news trade 
received 17.5p of the cover price 
and News Corporation 27.5p. 
Because the news trade margin 
had been fully protected. Sews 
International was now receiving 
around 25p for each cops*. 

Mr Cook told Sir Bryan that a 
reduction of competition if other 
titles were forced out of the mar- 
ket would not be in the interests 
of readers. 


New battleplan for Waterloo. 

Page 8 
See Lex 


Low countries see red and 
orange in needle matches 


German row 

jeopardises 

Eurofighter 


By Ronald van de Krol hi 
Amsterdam 

Deep-seated rivalry between the 
Netherlands and Belgium will 
surface today hi two highly-con- 
tested matches played between 
determined teams in far-flung, 
sunny settings. 

On the Greek island of Corfu, 
Mr Ruud Lubbers, the Dutch 
prime minister, will seek to pre- 
vent victory by his Belgian coun- 
terpart, Mr Jean-Luc Dehaene, in 
a closed-door contest to succeed 
Mr Jacques Deters as president of 
the European Commission. 

Meanwhile, the US will host 
Dutch-Belgian competition of a 
more open kind at the football 
World Cup. hi the midday heat of 
Orlando, Florida, Belgium’s "Red 
Devils” squad wfll be meeting the 
“Orangemen” - the nation*! side 
of the Netherlands. 

Fixtures involving the two 
countries are always favourites 
with the fans , but titis mafarh fras 
taken on added significance 
because of the unusually hard- 
fought battle between Mr Lub- 
bers and Mr Dehaene for the 
right to assume the mantle of 


“Mr Europe”. Diplomatic rela- 
tions between the Dutch and the 
Belgians are usually correct but 
the two countries have a compli- 
cated love-hate relationship 
springing from a shared history. 

The Belgians may have seceded, 
from the United Netherlands in 
1830. but the language, literature 
and culture of the Dutch-speak- 
ing part of Belgium and “big 
brother” Holland to the north are 
inextricably intertwined. 

This link has brought irrita- 
tions and jealousy, and Belgian 
jokes in the Netherlands are as 
rife as Dutch jokes in Flanders. 

The Dutch like to see the Bel- 
gians as drink-loving layabouts 
mired in political squabbles. 
There is also grudging respect for 
the Flemish and their efforts to 
safeguard the Dutch language. 

To the Belgians, the stereotypi- 
cal Dutchman is stingy with 
money, larfciTjg in culture and 
devoid of gastronomic finesse. 
Above all, he is tend and over- 
bearing, especially when visiting 
Belgium. In fact, Belgian, resent- 
ment of their more voluble neigh- 
bours is distinctly <iw<iar to the 
aversion of the Dutch to the 


crowds of German holidaymakers 
in their own country. 

indeed, Dutch passion about 
the succession to Mr Deltas is not 
directed so much at Belgium, a 
follow small country in the Euro- 
pean Union, as it is at Germany, 
Mr Dehaene’s main supporter. 

This attitude was neatly cap- 
tured by a politic al cartoon in the 
Amsterdam daily Het Parool 
showing German Chancellor Hel- 
mut Kohl with a tiny Mr 
Dehaene in his shirt pocket. 

The caption read: “The right 
man in the ri ght spot”, under- 
scoring Dutch perception of Mr 
Dehaene as a potential puppet for 
German interests. 

It is therefore just as well the 
Germans and the Dutch - whose 
sporting encounters have 
to rekindle unresolved an gw dat- 
ing from the second world war - 
have yet to meet on one of the 
football fields of the US while the 
question of Mr Delors’ succession 
remains unresolved. 


Summit reports, Pages 2 & 3 
Union Jacques that Eurosceptics 
fear. Weekend I 
World Cup, Weekend XIV 


Continued from Page 1 


the higher the expenses will be.” 

Mr Volker Rfihe, the German 
defence minister, refused to pass 
D ASA’s request for extra fund- 
ing on to the G«man parli ament 
until the government is satisfied 
the sum requested is reasonable. 

Dasa wants the defence minis- 
try to supply about DMl.tbn 
including costs carried over from 
1992 to guarantee the project's 
future. The defence ministry has 
said it cannot guarantee to put 
up more than DM5 20m. It may 
find an extra DttlTOm, but only 
if Dasa can provide accounts to 
back its argument that more 
public money is needed, a minis- 
try spokesman said. 

The ministry has said it will 
meet costs arising from the gov- 
ernment’s 1992 decision to 
extend the production period. 
However, it was not p rep a red to 
pay for delays for which, in its 
view, Dasa was responsible. 

"The question will be largely 
decided by how modi industry is 
prepared to budge,” a ministry 
spokesman said. “We’re staying 
put” 


FT WEATHER GUIDE 


Europe today 

Sunny conditions with plenty of sunshine wfll 
prevail over a large area. Temperatures win rise 
between 28C and 34C from Denmark to Italy. 
Meanwhile, a frontal zone from Spain to the 
Channel wfll lead to rain and thundershowers 
near the Atlantic seaboard. Heavy thunder 
showers over western France and Spain wW 
spread eastwards In the afternoon. During the 
showers, temperatures wifl fafl to 22C in 
western areas. There wfll be sunshine In the far 
east and the north. Showers will trite place over 
central parts of the British Isles, but south- 
eastern England wfll be hot and sunny. Eastern 
Scandinavia wifl Improve briefly, but firesh rain 
and wind win lash the Norwegian coastline. 
North-eastern Europe wfB stay mainly cloudy 
with occasional showers in the north. The 
Ukraine will have showers. 

Five-day forecast 

A heat wave will flow further east, accompanied 
by heavy thunder showers over central and 
southern Europe. After a slightiy cooler day In 
western Europe, temperatures will rise again 
next week. Conditions In Scandinavia wifl 
remain unsettled. 


TODAY’S TEHPBUTinES 



Situation at 12 &/T. Tamp&igli&BS maximum for day. r p rec a sts fay Metso Consult of the N ether la nds 



Mawmun 

Be$ng 

(fated 

28 

Caracas 

shower 

26 

Faro 


CeMus 

Belfast 

cfovdy 

18 

Cardiff 

fliund 

24 

Frankfurt 

Abu Dhabi 

sun 

41 

Belgrade 

sun 

32 

Casablanca 

Mr 

24 

One 

Accra 

showsr 

29 

Benin 

sun 

31 

Chicago 

Mr 

29 

GBvaHar 

Algiers 

ftflr 

33 

Bermuda 

Mr 

30 

Cdagfl 

sun 

38 

Glasgow 

Amsterdam 

sun 

29 

Bogota 

Mr 

19 

Dakar 

Mr 

27 

Hamburg 

Athens 

on 

33 

Bombay 

cloudy 

30 

Dallas 

sun 

37 

HeMrt 

Atlanta 

cloudy 

30 

Brussels 

sun 

33 

Delhi 

Mr 

39 

Kong Kong 

B. Aires 

fair 

7 

Budapest 

swi 

33 

Dubai 

Site 

40 

HonoMu 

B-ham 

thund 

29 

CJiagen 

fair 

24 

Dubfln 

(fated 

18 

Istanbul 

Bangkok 

shower 

33 

Cairo 

fair 

38 

Dubrovnh 

aui 

32 

Jakarta 

Barcelona 

fluid 

25 

Cape Town 

Cloudy 

14 

Stfnbugh 

shower 

19 

Jersey 



Our service starts long before takeoff. 

Lufthansa 

German Airlines 


Karachi 
Kuwait 
L Angeles 
Las palmas 
Una 
Lisbon 
London 
Usuxxag 
Lywi 

Madeira 


cloudy 

sun 

fair 

Cloudy 

shower 

sun 

fair 

show- 

sun 

fair 

shower 

fluid 

sun 

aui 

sun 

sun 

cloudy 

shower 

fair 

sun 

sun 

fair 


28 Madrid 
SS Ma jorca 

29 Malta 

28 Ma nche ste r 

20 Marta 

31 Melbourne 

21 MencoCfly 

28 Miami 

30 Mian 

29 Montreal 

31 MOSCOW 
27 Minch 
35 Nairobi 
42 Naples 

24 Nassau 

25 New York 
IS Nice 

21 Nicosia 
33 Orto 
33 Paris 
31 Perth 

22 Prague 


ttwnd 

fair 

sun 

fluid 

rain 

Mr 

fair 

Mr 

sun 

tain 

show 

sun 

Mr 

sun 

Mr 

Shower 

site 

fair 

cloudy 

cloudy 

cloudy 


23 Rangoon 
SB RaykfavSr 
31 Rk> 

26 Rome 

31 S.Fraco 
12 Seed 

22 Singapore 
33 Stockholm 

32 Strasbourg 

23 Sydney 
20 Tangier 

33 TtfAtfV 

24 Tokyo 

32 Toronto 

33 Vancouver 

27 Venice 

28 Vienna 

34 Warsaw 
24 Washington 

31 Wafington 
18 Winnipeg 

32 Zurich 


shower 

fair 

cloudy 

sun 

Site 

fluid 

fluid 

fair 

fair 

cloudy 

far 

fair 

shower 

doudy 

shower 

sun 

sin 


31 
11 
24 
30 
21 
30 

29 
26 
33 
15 
22 

32 
28 
24 
22 

30 

31 


Mr 26 
Mr 31 


shower 

fan- 

sun 


11 

28 

31 


The central seem simply to 
have stored up more trouble for them- 
selves with yesterday's foreign 
exchange market intervention. The 
dollar recovered against the yen for a 
while, but the D-Mark was quickly 
stronger than before. The central 
Hawfcs were cleanly wrong if they 
f |yn«g ht they could catch dealers on 
the bop in quiet pre-weekend markets. 

In fori, it seems they were simply 
giving speculators a chance to unload 
long dollar positions which should 
have been unwound long ago. Nor 
can intervention without supporting 
action on interest rates do the trick. 

Having shown their band, the cen- 
tral banks cannot easily stop here. 
There may be no pressing domestic 
need for higher US rates, while the 
onset of recovery and excessive money 

suppl y growth hardly call for a cut in 
Germany. But the authorities are 
damned both ways. Unless they can 
stabilise the dollar, the US bond mar- 
ket. from which other markets around 
the world take their lead, looks vul- 
nerable. Lf US interest rates are raised, 
though, there is a risk of yet more 
turbulence in the markets. 

The only consolation is that bonds 
and equities seem already to be dis- 
counting higher US rates. When the 
cove finally cranes, the markets could 
mim down. Yet. to support the dollar, 
any US rate rise would need to be 
laige enough to make a significant 
dent in the recovery. 

Unsurprisingly, the equity market 
has now taken fright on both sides of 
the Atlantic. In watching Will Street, 
London dealers must be wondering 
whether a similar fate will befall the 
UK sooner or later as its own eco- 
nomic recovery matures. 

Newspapers 

Until Wednesday, the stock market 
viewed newspaper publishing compa- 
nies as attractive investments. Such 
businesses were considered highly 
cash generative with predictable 
income streams and a geared exposure 
to the advertising cycle. Yet price 
wars have turned such thinking 
upside down with more than £lbn 
being wiped off the value of newspa- 
per shares. That may smack of 
hysteria. But if middle-market news- 
papers are sucked into the price-cut- 
ting vortex, then it may yet be seen as 
a fair reflection of the industry's 
prospects. 

Unless that price cutting expante 
total newspaper sales - which is 
doubtful - the industry’s profitability 


FT-SE Index: 2876.6 (-65.8) 


BfAquItato* 

Share prioa ntafara to tto CAC 4Q Index - 

110 



will be savaged. Ttotal profits could 
perhaps Call by 30 per cent over the 
next few years. Kiting paper prices 
already threaten to squeeze margins. 
By emphasising their cheapness, 
newspapers may also lay themselves 
open to VAT. Newspaper shares wifi 
seed a higher risk premium since they 
appear so vulnerable to the antics of 
Mr Rupert Murdoch. 

It is not only the daily national 
newspapers that will suffer. Competi- 
tion may escalate further on Sundays. 
Big regional newspapers, too. may fear 
they will lose sales unless they 
respond. Price wars in any industry 
tend to reflect surplus capacity. Mr 
Murdoch may simply believe this i s 
true of newspapers too. By dragging 
down the margin structure he perhaps 
hopes to hasten consolidation. Only 
then will the industry return to 
healthier economics. 

Elf Aquitaine 

HTs warning that half-year group 
operating profits wifi fall 30 per cant 
highlights how tough It Is for corpo- 
rate France to daw its way out of 
recession. Continuing weak demand in 
France and Germany, combined with 
the depressed crude oU price In recant 
times, is hampering Sirs self -improve- 
ment plans. Ell’s heavy exposure to 
upstream activities increases its 
vulnerability. 

Such slow progress may disappoint 
those investors who bought into SB at 
the time of its much-hyped privatisa- 
tion in February. Elf waa then acrid to 
the market as a BP-tiyle recovery 
stock. US investors, in particular, 
were attracted to its vast asset base, 
cash flow profile and yield. Etf is still 


pursuing the right course hi cutt i n g 
costs, preserving fteh and a imin g to 
realise FVrtba from wart sates. Yet 
the wwdowa of the oil price and strict 
French employment taws man It wifi 
take longer to realise the benefits than 
tKtt had previously assumed. 

El Ts warning also strikes an omi- 
nous note (or the rest of tiw French 
bourse, which has already tend worse 
than most other European markets 
this year. Corporate •&<{ consumer 
confidence remains fragile as the 
til-important lb-year OAT bond yield 
has jumped by 2 percentage points 
this year. High bond yields may deter 
investment end forestall tha fell In the 
savings ratio. The French government 
wtU find It hard to press Ahead with 
further privatisations against such a 
background. At least it has already got 
a good slug q t stock away this year. 

Executive pay 

Even if some investment managers 
dislike the high profile stance on exec- 
utive pay adopted by Mr Alastair Rom 
Goobey of MM. few would disagree 
that be has a point about long tana 
rolling contracts. Since they make it 
expensive to Ore top managers, they 
have been one of the main instru- 
ments by which failure ns rewarded 
during the recession- Happily (here 
has been a tendency for the duration 
of such contracts to shorten. Before 
the Cadbury Report five yean was 
common: afterwards a three-year 
roiling contract became the norm, i 
Since FoeTei’e original Intervention , 
the period has tended to shrink! 
fiurther. 

Some might argue that the media- 
friendly Mr Rom Goobey is claiming : 
credit for latching on to a trend that, 
was already there. But they would be 
wrong to assume that dbrawt pres- 
sure from institutions is mough to 
root out abuse. A public stand, even if 
It seems inflexible, can help shift 
behaviour standards. And all Mr Rom 
Goobey la saying is that he will use 
his vote to back up Ida views. That is 
what shareholder democracy is about 

Since rolling contracts were one* a 
necessary part of any package 
required to attract top quality . 
recruits, am fear is that other boot- 
lives, poedbiy more costly to share- 1 
holders, would he needed to replace 
them. Significantly, though. PoofTel 
claims amendment of existing con- 
tracts has not usually involved com- 
pensation. In that case, there Is every 
reason to press for. the duration of 
such contracts to be reduced further. 


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SECTION II Weekend June 25/June 26 1994 




t 





Union Jacques that Eurosceptics fear 


As Europe s leaders meet in Corfu this weekend [ Charles Grant assesses Delors’ impact on western 
Europe and how his contribution has defined the debate on its future for decades to come 



T his weekend on the 
island of Corfu, 
Europe's leaders hope 
to name the man who 
will implement - or 
abandon - the vision of J acques 
Delors for a grand political »min n 
on the eastern side of the Atlantic. 

After 10 years as President of the 
European Commission, Delors has 
come to symbolise the of a 
generation of European federalists 
- and everything that Eurosceptics 
dislike and fear. 

After the great battle in Rome in 
October 1990, between Margaret 
Thatcher and Delors about his plan 
for a single European currency, 
Britain’s The Sun newspaper filled 
its front page with the three words: 
“Up yours Delors". If this expressed 
only the inchoate fears of little 
Englanders, there has since 
emerged a widespread anxiety In 
many European countries about 
Delors’ vision of a federal future. 

Yet no politician since the second 
world war has made a greater 
impact on western Europe. General 
De Gaulle and Margaret Thatcher 
made profound changes in their 
own countries, it is true. But Delors 
leaves an indelible mark on half a 
continent. 

He transformed the feeble and 
ineffective bureaucracy of the Euro- 
pean Commission, and the Euro- 
pean Union it serves, into influen- 
tial and intrusive organisations. It 
is precisely because of this that 
they have attracted a wave of popu- 
lar hostility. 

How did this workaholic, with the 
fiery temper and a strong sense of 
Roman Catholic morality, achieve 
such a position? And why is it that 
he is one of the most popular politi- 
cians in France, where he is likely 
to be the Left's candidate for the 
presidency in May? 

Delors’ absence from the fray of 
party and factional struggle - as a 
dens ex mndtma in Brussels - has 
given him the image of someone 
who is above politics. He has nur- 
tured this myth, often claiming that 
he is too naive, too lacking in self 
confidence and too unambitious to 
succeed in politics. 

And indeed he has never been at 
ease in any political party. In the 
1950s and 1960s he worked with a 
series of left-wing Roman Catholic 
clubs rather than the socialist 
party. He has never been elected to 
an assembly, with the exception of 
the European Parliament in 1979. 

However, the story of Delors* 
European presidency reveals him to 
be a master of tactical skin, strate- 
gic sense and political cunning. 

When he became president of the 
European Economic Community 
(which later became the European 
Community, or EC, and later still 
Use European Union, or EU) use of 
the national veto had ensured that 
the commission's draft laws seldom 
passed the Council of Ministers. 
From his first month in office. 


Delors began to transform the Com- 
munity. He had huge influence om 
the programme to create a single 
market by the end of 1992; the Sin- 
gle European Act; the budgetary 
packages of 1988 and 1992; the Euro- 
pean Economic Area; the Social 
Charter and the Social Chapter; the 
Delors Report on Economic and 
Monetary Union (Emu); and the 
subsequent moves to "political 
union". 

The EU became such a success 
during the Delors years that nine 
countries applied to join. 

These were remarkable achieve- 
ments, for It is much more difficult 
for a politician to make a mark on 
European institutions t han on his 
own government The constitutions 
of nation-states are hierarchical, 
and allow a prime minister or presi- 
dent with a parliamentary majority 
huge scope for making changes. 

The EU, however, is a complex 
network of supra-national bodies 
(the commission. European Parlia- 


ment and Court of Justice), inter- 
governmental bodies (the Council of 
Ministers) and national govern- 
ments, which all contribute to the 
legislative anrf executive processes. 

The ElTs constitution allows no 
role for a leader with a strong exec- 
utive authority. Ultimately, the 
Council of Ministers the most 
important decisions, but only after 
officials from the commission, the 
Council of Ministers' secretariat, 
the European Parliament and 
national ministries have been con- 
sulted. 

Euro-MPs. commissioners, junior 
ministers, national ambassadors 
arwi hundreds of lobbyists all have a 
say. Committees, working groups 
and all-night meetings - rather 
than powerful individuals - are the 
cogs which drive this machinery 
forward. Decision-making is so slow 
and co nsensual that decisive leader- 
ship from the centre is almost 
impossible, as Delors* predecessors 
discovered. 


How, then, did Delors set about 
the task? Luck played its part The 
Community began to regain 
momentum just before his arrivaL 
The Fontainebleau summit, which 
appointed him in 1964, settled five 
years of arguments over Britain’s 
budget contribution. In an increas- 
ingly lioeral clima te, most govern- 
ments thought the best treatment 
for Eurosclerosis would be deregu- 
lation. 

D elors exploited these 
opportunities with great 
tactical skilL When he 
chose to relaunch 
Europe around the theme of the sin- 
gle market, he understood - better 
than many British politicians — that 
there would be political conse- 
quences. 

The commission's white paper erf 
300 barrier-busting proposals put 
press u re on governments to provide 
the means for implementing them. 
The result was the Single Euro- 


pean Act, which ended the national 
veto on single market laws. Delors* 
next key initiative, in 1968, was to 
push the EC towards European 
monetary union , 

He knew that would provoke a 
debate on the reform of the EC’s 
institutions - which hpramn known 
as political union. Delors always 
had a clear idea of where he wanted 
Europe to go, which gave him an 
advantage over political opponents 
who lacked his long-term vision. 

A commission president has few 
formal means of influencing Euro- 
pean politics, other than the right of 
proposaL Much of Delors* clout has 
depended on the friendships he cul- 
tivated with EC prime ministers 
and foreign ministers. Helmut Kohl 
has proved by far the most useful of 
these allies. 

Hie pair enjoy each other's com- 
pany, sharing a strong Roman Cath- 
olic faith and an earthy sense of 
humour. In 18S8 Delors persuaded 
Knhi to back Emu, and the chancel- 


lor made his friend chairman of 
what became the Delors Committee. 

hi 1989 Delors* warm support for 
German unity - when Thatcher and 
Mitterrand had doubts - turned 
friendship Into btutsbruderschaft. 
During the talks on the Treaty of 
Maastricht, Delors relied on Kohl to 
keep the oilier governments zn step 
with his timetable for Emu. 

Many of Delors' personal qualities 
proved well-suited to his job. The 
president has a chance to set the 
EXTs agenda, so is likely to be more 
effective it as in Delors* case, he - 
there has yet to be a she - is a 
prodigious generator of ideas. 
Throughout his career, in articles, 
speeches and books, Delors has 
spurted out proposals on industrial 
relations, labour markets, monetary 
economics and Europe's constitu- 
tion. 

Delors* staff joke that the role of 
Pascal Lamy, his chef de cabinet 
until last month, was to tell the 
president which were the 19 of his 


20 ideas that would not work. 

Delors combines a fertile imagina- 
tion with a pragmatic bent that 
makes him a keen compromiser. He 
spends evenings and weekends 
reading and annotating documents. 
At meetings of the Council of Minis- 
ters and at summits he is usually 
better prepared than anyone else. 

His forte at such occasions Is to 
craft compromises which others fait 
to find because they lack his know- 
ledge of the detail. Thus at the 
Edinburgh summit of December 
1992, Delors found the formula 
which settled the Ell’s budgetary 
plans to 1999. 

Delors believes he has a duty to 
serve God by improving the lot of 
mankind. That sense of mission jus- 
tifies, in Delors' own mind, his 
ambition. "What drives me is the 
worry - a sort of panic - that l 
might not do useful things," he 
says. "I am never satisfied. Evi- 
dently, those who are will be hap- 
pier." 

He is uninterested in money and. 
in spite of a £140,000 a year salary 
(after tax), leads a frugal life. He 
avoids diplomatic soirees and sel- 
dom ventures out in the evening - 
unless one of his favourite jazz 
musicians, such as Sonny Rollins, 
happens to be performing. 

He descended into one of his 
blackest-ever moods in February 
1988, just before a Brussels summit 
that was supposed to approve his 
budgetary package. Delors told a 
meeting of commissioners that if, as 
he feared, the summit did not pass 
his package, he would resign and 
they should too. 

When none of them offered to do 
so he accused the commissioners of 
cowardice and disloyalty. If there 
was a shipwreck, he said, they were 
all in it and he would denounce any 
survivors. He accused Grigoris Var- 
fis, the Greek commissioner, of 
incompetence and treachery, and 
said that he and his department 
were une honte (shameful) and une 
scandals. 

Delors four times told his col- 
leagues that they should be ready to 
resign with him. After two hours of 
this haranging he stormed out. In 
the event the summit passed the 
package and Delors never had to 
test his colleagues' loyalty. 

Surprisingly, those who experi- 
ence Delors' ire are usually ready to 
forgive him, for they respect his 
integrity and his ideals. “Delors' 
weaknesses, such as his self-ques- 
tioning, make you want to protect 
him," says Max Kohnstamm, for- 
merly chief aide to Jean Monnet 
(one of the Community’s founding 
fathers), and a friend of Delors. "If 
he kicks someone, you don’t ask if 
he’s plotting against them, because 
you know he's doing it for Europe." 

He inherited a horizontal power 
structure in which the president 
was primus inter pares among the 


Continued on Page xm 


X 


* 4 - 


- i i\ ! 

I Ml! 







♦ 



CONTENTS 

Finance 41 Family : Pension funds 
- will they be safer in future? Ill 

Lunch with the FT: Lucy KeUaway 

meets CB1 chief Howard Davies XI 

Food and Drink: Giles MacDonogh 

seeks the perfect martini XII 

Fashion: John Morgan packs a chic 
holiday wardrobe IX 

Books: Malcolm Rutherford on 
Joseph Chamberlain XX 

Arts : Bonnard: one of the 20th 
century's greats 3001 



Robin Lane Fox recommends seeing 
England's roses at their best this 
weekend xUI 


Arts 

Books 

Bridgo, Chocs, CkwwokJ 
FasNart 

Hnonoj * «w Fomrty 
FoMtOmk 

Gardening 

Hen To Spend K 

Marked 

-lamas Maigan 

Motoring 

Prtww wow 

Propony 

Span 

Udwei Thompson- Moot 

Travel 

TVAfiodo 


XH.XHl 

XX 

sow 

DC 

ai-vn 

xn 

xm 

x 

n 

VHI 

XV 
XXIV 

XDC 

XBMW 

XXIV 

XVI 
XX« 


The Long View / Barry Riley 

Look who’s talking . . . 


Once again the 
international financial 
markets are being 
infnriatin^y obtuse, or 
so it appeazs to the poli- 
ticians. As another 
minor dollar crisis 
erupted on the foreign 
exchanges this week, 
the chairman of the US 
Federal Reserve, Alan Greenspan, chose 
to boast (In the dangerous style of 
Britain's former chancellor. Nigel Law- 
son) that the economic outlook for the 
US was “as bright as it has been for 
decades”. 

US treasury secretary Lloyd Beotsen 
insisted the economy was fundamen- 
tally strong and, by implication, the 
dollar should be, too. President Bill 
Clinton also joined in this round of jaw- 
boning which was, apparently, intended 
to soften up the markets for the next 
round of intervention, “In the aid, the' 
markets will have to respond to the 
economic realities,” he said. Well, 
yes. ..but have they not already been 
doing so? 

Which has the stronger economy: the 
US, with 3'A per cent growth in GNP, 
unemployment falling, and corporate 
profits and investment rising rapidly; or 
Japan, where total output is barely 
growing and industrial production is 
down, year-on-year? But let us look at 
that again. Japan has a huge surplus of 
exports over Imports and is likely to 
run a balance of payments surplus of 
$125bn this year. It has a negligible 
budget deficit and boasts the lowest 
inflation and interest rates of any major 
country. 

The US, in contrast, has been running 
up deficits for many years: it is unwill- 
ing to tax its citizens enough to pay the 
government’s bills and the nation is 
eager to consume more imports than it 
is willing or able to finance through 
export deliveries. 

Currency strength or weakness in ths 
long run tends to reflect ingrained 
national characteristics. When the poli- 
ticians of a country such as the US 
become annoyed by the tendency of 
their currency to sink, they tend to hit 


out either at the alleged irrationality of 
the markets or at the supposed Irre- 
sponsibility and cussedness of overseas 
governments - in this case, at the fail- 
ure of the Japanese government to 
expand domestic credit fast enough. 

hi fact, the Americans should look at 
their own characteristics. They save 
comparatively tittle and are high con- 
sumers. As a result, investment and 
growth will be comparatively low and 
the currency win be weak in the long 
run, with a tendency towards high 
inflation. If the Americans want to live 
like this, it is their privilege to do so - 
but they should understand the conse- 
quences. If they really want to stabilise 
the dollar, they must take steps to raise 
domestic savings and stop blaming 
everybody else. 

Substantial countries rarely change 
their economic spots. A notable excep- 
tion has been France, once firmly in the 
high inflation camp but more recently 
transferred to the German economic 
zone, to the incomprehension of 
Anglo-American critics. The UK, of 
coarse, continues on its secular decline, 
with record levels of consumption and a 
rate of aggregate national savings at 
the bottom of the international league 
table. The exit from the European 
exchange rate mechanism in September 
1992 was rationalised widely as a tri- 
umph; sterling's trade- weighted imieac 
drifted below 80 this week, the lowest 
for more than a year. 

T hese long-term trends in cur- 
rencies have become evident 
since the ending in the 1930s 
and 1940s of the links with 
gold, and especially since the introduc- 
tion of the floating rate system early in 
the 1970s. Meanwhile, price movements 
have become op ward-only - not always 
rapid, but without the interludes of off- 
setting sharp price fells which meant, 
in previous centuries, that there was no 
long-run trend in prices. 

An over-spending country with a 
weak currency has to attract the savers 
of other countries by offering them a 
higher rate of return. The greater the 
reluctance of savers in a hard currency 


country to venture overseas, the 
greater the premium will have to be. 

Japanese investors have been hit sav- 
agely by currency losses in the past and 
are proving very reluctant to expose 
themselves to the very real risk of more 
of the same. The yen would have appre- 
ciated further if the Japanese authori- 
ties had not been heavy buyers of US 
treasury bills and other short-term dol- 
lar assets. 

Now that last year’s temporary opti- 
mism over the dollar has evaporated, 
dollar interest rates look anomalously 
low. Short-term rates have, for a long 
time, been below those in Germany, 
now, 10-year band yields are, too. 

In part, this might reflect the prob- 
lems of Germany itself which, because 
of the persistent consequences of reuni- 
fication, is in danger of slipping off its 
pedestal; state borrowing is very high 
and the Bundesbank has lost control of 
the money supply. But dollar rates are, 
nevertheless, too low and the 
Americans will have to stop chattering 
and keep on ratcheting. 

As the accumulation of debt proceeds, 
more marginal savings have to be 
attracted and the real cost of borrowing 
is likely to rise. Foreign investors have 
to be compensated for the risk of cur- 
rency depreciation, domestic ones for 
the risk of inflation in the long run. 
There is no point in finance ministers 
protesting that the present rate of infla- 
tion is low. It is less than four years 
since UK Inflation was over 10 per cent, 
a time period which is just the fleeting 
interval between one football World 
Cup and the next 

Perhaps the borrowers should focus 
on the possibility that they could bring 
down their costs by offering a firmer 
promise of repayment, backed by links 
to an inflation or currency index - or 
even to bullion (as the French once did 
in their post-war dilettante period) 
thus, in effect, reinstating the gold stan- 
dard for long-term government debt. 

For the time being , though, we shaft 
continue to be witnesses to the frustra- 
ting spectacle of perverse financial mar- 
kets refusing to accept the self-evident 
truths uttered by the politicians. 



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Thw adrennoanu a wuoi by ftroa Capel Sc Ov Limited, a member o< SFrt jod die London Stock frar/urip:. 
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U WEEKEND FT 




MARKETS 


London 

Powerful men 
with money 
to burn 

Roderick Oram 


O ne - often futile 
- way to prop up 
flagging paper 
assets is to allow 
powerful men 
with money to bum to inter- 
vene in the marketplace. 

Central bankers tried it with 
the dollar yesterday with lint 
ited. Earlier in the week, Con- 
rad Black and Rupert Murdoch 
tried it with their flagship 
newspapers, slashing cover 
prices of the Daily Telegraph 
and The limes to stimulate cir- 
culation. 

The likely outcome win he 
the same in both cases: much 
money will be spent but for 
negligible net gain. Some cur- 
rencies and newspapers will 
rise, others win fall while the 
men who tried to move the 
markets win be a lot poorer. 

The c ur r en cy effect cm global 
markets was dramatic from the 
opening of trading on Monday. 
The dollar weakened rapidly 
particularly against the yen 
and D-Mark. Factors cited 
ranged from worries about ris- 
ing US inflation, worsening US- 
Japanese trade relations and 


accelerating growth in Ger- 
many. 

Bonds in the US and Europe 
took flight, dragging down, 
equities with than. The FT-SE 
1(K} index shed a net 14&3 
points to end the week at 
237&6, its lowest mark since 
July 26. But few people 
resorted to ditching their 



This was supposed to be the 
year of the strong dollar, 
thanks to rising US interest 
rates, fan mg German rates and 
other favourable economic con- 
ditions. Instead, it has weak- 
ened against some currencies 
as investors have become ner- 
vous about inflation and poli- 
tics. It is important to bear in 
mind , h owe ver, that the dollar 
is now stronger than two years 
ago on the more realistic basis 
of its trade-weighted average. 

More turmoil Is ahead, 
though, argue those analysts 
who see exchange rates as a 
key tnftnBnrp. of capital mar- 
kets. SG Warburg’s economists 
believe the dollar will be 
driven lower by four factors: 
the US trade deficit is deterior- 


ating; US inflation will run 
ahead of Germany's; the US 
Federal Reserve, driven by 
domestic economic consider- 
ations, will not raise interest 
rates enough to help the dollar; 
and doubts are growing about 
the Clinton. Administration’s 
competence in handling geo- 
political problems. 

Yet not everybody is glued to 
the currency screens. “The 
weakness of the denar is a dis- 
traction. You shouldn’t take 
any notice of exchange rates," 
says Peter Lyon, global strate- 
gist at Smith New Court. They 
might tell you something 
about relative inflation rates 
but it is much more important 
to focus on interest rates. 

Policy makers have made 
some big economic wiigtakes 
concentrating on currencies 
rather than interest rates, not 
the least of which for the UK 
was its experience in the ERM. 

Lyon took comfort this week 


HIGHLIGHTS OF THE WEEK 


Price 

Change 

1994 

1994 




y*tv 

on week 

High 

Low 



FT-SE 100 Index 

28 res 

-1483 

35203 

2876.6 

FaS ki US dollar 


FT-SE Mid 2S0 Index 

33742 

-1529 

4152-8 

33742 

Buyers withdraw 


A 1 J 0 Wiggins 

246 

-2116 

316 

237 

Warburg •sen" recommendation 


BATInds 

372 

-34 

570 

372 

High nicotine debate 


Blue Ctrcia 

277 

48 

391 

262 

Panmum Gordon recommends 


GKN 

382 

-2416 

632 

510% 

Stock overhang 


Glaxo 

S32 

-47 

725 

520 

Bond investment concerns 


Lloyds Bank 

522 

-4116 

660 

522 

Smith New Court turns seRer 


Minor Group 

130 

-42 

203 

126 

Newspaper price war 


H1Z 

313 

-41 

899 

790 

OoBsr pressures 


Reed bid 

750 

-44 

964 

750 

Dollar prasswes 


Rofla-Royea 

174 

-12 

204 

161 

Unimpressive presentation 


TSB 

204 

-20% 

291 

20216 

Disappointment over results 


Telegraph 

332 

-216 

622 

323 

Cover price cut 


United Newspapers 

485 

-118 

731 

479 

Newspaper price war 



from the failure of US bond 
prices to breach the lows they 
readied a month ago. “There 
may be some scat of light at 
the end of this tunnel.” 

Moreover, sentiment is 
changing in the UK equity 
marke t He notes that at the 
beginning of the year, high 
optimism was gignaiit»d by an 
historically high ratio of calls 
to puts in tiie derivatives mar- 
kets. 

Now the ratio is histo rically 
low, 51'gwflHing high negativity. 
Such sentiment is typical of a 
wiling climax at the bottom of 
the market. Thus it also tends 
to be a good indication of the 
moment to resume buying. 

When will consumers of 
goods and services start buy- 
ing more is a question many 
companies in the news this 
week have been asking them- 
selves. Even with only moder- 
ate demand, British Steel was 
able to report pre-tax pro fits 
for the year to April of £80m 
against year-earlier losses of 
£149m after restructuring 
costs. But to try to bring mare 
rational behaviour to the 
marketplace, it is going to take 
the EU to court over its steel 
subsidies. 

First Leisure reported disap- 
pointing interim pre-tax profits 
of Pi 4.1m, up 16 per cent It is 
still finding consumers cau- 
tious about spending their 
income on recreation. Perhaps 
the public - like Eurotunnel 
investors who left one-third of 
the UK rights issue with 
underwriters - just want to 
spectate rather then partici- 
pate. Guinness, for example, 
has reported brisk stout sales 
during the World Cup. During 
the Ireland-lialy gamp, o n e pub 
pulled five times the number of 
pints It would in a normal 
evening. 


The corporate calamity of 
the week was Hazlewood 
Foods. Its shares fell sharply 
after it announced lower prof- 
its, production problems at 
four new plants and conse- 
quently the resignation of the 
heed of its UK operations. Sil- 
entnightis shares feH after it 
said people were buying fewer 
beds. 

But if the public is not eating 
and sleeping the way it was, 
can it be persuaded to read 
more newspapers? Rupert Mur- 
doch is convinced it can. Oral 
least he can snatch readers 
from someone else. Since he 
cut the cover price of The 
Times 10 month* ago. Us cir- 
culation has risen from 370,000 
to 515400. 

Some of those readers have 
co n ve rte d bom the Daily Tele- 
graph which had tried to 
remain aloof. But with the 
Daily Telegraph’s circulation 
recently faffing beknr Im a day 
for flat first *i™» in more Hi«n 
40 years. Conrad Black could 
hold out oo longer. lie retalia- 
ted with his own price cuts. 

A few other things were 
«i<xhid in the process, includ- 
ing The Telegraph’s share 
price, along with tint of United 
Newspapers, the Dally Mill 
Trust and other pubfishers. 

It was the most dramatic 
y ynmt in Telegraph’s his- 
tory since Lord Camrose 
halved the price to ftp in 1930, 
an event aome T el e g r ap h read- 
eis would still remember. 

Murdoch counter-punched by 
catting The Times’ cover price 
to 20p. At that price he needs 
to seO sane 300,000 more a day 
to break even. It might be 
cheaper for him to buy afl the 
extra, copies himself. Such mar- 
ket intervention would cost 
him personally about £2&7&z a 
year. 


Serious Money 


Can watchdog stop 
another Maxwell? 

Gillian O’Connor , personal finance editor 


T wo cheers and one 
hiss for the pensions 
White Paper. Overall, 
it is a lot tougher 
than expected. Co mp any pen- 
sions will be more secure and 
personal pensions will be more 
fiarihia So. most people should 
be able to make sensible provi- 
sfem for their retirement 
The worry is that the new 
watchdog might not be tough 
enough to stop another Max- 
wdL (Analysis: page Q). 

□ DO 

Tin pension proposals under- 
line. yet again, the conflict 
between having total security 
and getting the best invest- 
ment returns. Understandably, 
given their generis in the Max- 
well pension raids, these pro- 
posals give security top bfllbg. 
The new solvency rules are caL 
culated on the assumption that 
the scheme might be dosed 
tomorr ow. 

Fair enough. But the cost of 
this security blanket is that 
some funds may produce a 
lower level of return than they 
could h ave done without the 
new restrictions. 

Those with a high propo rt i on 
of akte- members will need to 
bold a correspondingly Ugh 
proportion of gilt-edged stocks, 
rather than equities. But. If 
historic patterns hold true, 
equities are Hkety to do much 
better than gilts over the long 
term. 

InfHal r-ahnilnHnruj suggest 
that if pension funds kept their 
p resent asset mix 090 per cent 
equities/20 per cent bonds), 
they would provide an annual 
re t u r n of 17 per cent over 20 
years. If they move to a 50/50 
split, the return would drop 
below 16 per cent 
This caimiation is as rele- 
vant to your own investments 
as it is to pension binds. As a 
very rough rule of thumb, an 
individual investing on a rea- 
sonably long-tom basis should 
benefit from investing the 
majority of his money in equi- 
ties. In a real sense, they are 
the safer choice - if “safe" is 



ra-definad m TDrety to produce 
better returns*. 

This counter-intuitive logic 
can be applied also to over seas 
Investment Many people 
instinctively regard investing 
tn foreign stock markets as 
riskier than confining them- 
selves to the UK. But Britain is 
a mature economy with only a 
few growth busi ne s ses. The 
emerging markets story has 
been horribly over-hyped. 

Yet. tin basic argument tor 
an international investment 
portfolio with at least some 
money In emerging markets 
remains valid. Sticking to the 
UK is the global equivalent of 
keeping your fife's savings In a 
box under tire bed. 

W IU Jeremy hare 
the last laugh? 
Jeremy is the 
name given by 
venture capital group Si (see 
page V) to the private inves- 
tors who buy its shares. Ed, 
you will remember, was the 
plebian purchaser of British 
Gas shares, 

Jeremy has a better educa- 
tion and more money. And. eo 
far, 385.000 Jeremies bare reg- 
istered to receive prospe c t us es 
for the 3i offer, which closes on 
July 6. . . . 

This week, some critics 
argued that Jere m y had more 
money than Sanaa What was 
he doing buying a new issue 
when the equity market was 
collapsing and lesser issues 


were befog pulled InaH fflrec- 
tScms? 

Was he really prepared to 
buy on a 13% per cent discount 
to net assets whan seemingly 
comparable trusts were trading 
on more? 

WdL perhaps. But there is 
another way 0 f looking at it 
At last, private tuveeton are 
teeming to look fa r value. 
Invest tor the long term, and 
buy near the bottom rather 
than On top of the market . 

N ow tor something 
altogether more 
practical: the BP 
dividend. Share- 
holders are this year bring 
given a novel choice. Do they 
went to take their dtridend In 
cash - or would they prefer 
extra BP shares worth 25 per 
cent more than the cash divi- 
dend?* 

The novelty ties not In the 
choke, as such, but the feet 
that shareholders are bring 
offered the equivalent of the 
gross {rather than the net) div- 
idend. BP’S 460,000 private 
shareholder* should certainly 
consider taking toe mares. But 
there are aererel caveat* 

First tf your sharee are held 
in a personal equity plan, tows 
is no sign i fican t adv a n t ag e te 
opting tor toe share alterna- 
tive. You need also to be acre- 
rulif you are thinking of rell- 
Ing toa rirtra shares - as many 
income-orientated Investors 


Conventional stockbrokers 
bare mjnhnma c h a rg es rang- 
ing from J» to as as £40. 
So, BP shareholders with rata- 
tivriy small holdings win find 
that the extra value of the 
share alternative could be 
swallowed 19 by toe. costs of 
restoring it 

The way round tiria Is to use 
Hosts GovettVchttp dealing 
service, which has a bask com- 
mission of l per cent with no 
minimum- But the httSta GtC* 

lor means ft Is pretabty not 
worth considering unless you 
expect to use it more than 


“toqufrta: <079-444488. 


AT A GLANCE 


Investor confWwca 


Thn'Te 

-Sham price (pane*) 
T.7UO 



91 - ISto 1883 . 94. 
SguMt'Mari Aasuwie* ■ ' 


Investor Confidence 
index slips again 

The Peart Investor Confidence Index fell by two points during 
June, reversing the trend set by a steep rise in May. The index 
has now fallen during five of the ax months in 1994 so far. 

The index measures how many people think the stock market b 

HkeJy or very Beefy to rise ki the next six months to one year. 

The index was set at 100 in March 1991, and has now fallen to 
883. 

The highest point since it started was reached at the time of the 
general election in 1992. When the June figures we broken down 
Into poOticai afflfiattons, they show that confidence fefl among afl 
groups except Labour voters, whose confidence grew by 4 per 
cent 

The Telegraph’s sharp decline 

Telegraph shareholders have seen the value of their hokfttgs 
deeflne by almost half from their peak bat month, as the 
newspaper this week entered a price war with The Times, cutting 
Its daily cover price to 30p. The Times responded with a cut to 
20p. 

Other newspaper groups' shares also suffered. The Stock 
Exchange has launched an investigation into the c i rcumsta n ces 
surrounding the Telegraph's price cut 
Hoifinger, the Canadian publishing company controlled by 
Telegraph proprietor Conrad Black sold £73 m- worth of shares a 
month ago, when the share price was 587p. Hoiinger now owns 
57 per cent of The Telegraph, down from 66 per cent 

Rap for building societies 

Building societies were told this week to Improve their practices 
in relation to mortgage protection policies and to make dewier 
their written explanations of the terms far fixed-rate mortgagee. 
The annual report of the building societies ombudsman scheme 
described some documentation relating to fixed rate mortgagee 
as “sloppy*. On mortgage protection, ft urged societies at least 

to comply with the code of practice issued by the Association of 

British Insurers. 

Overall, however, EdeU said that the number of complaints the 
scheme dealt with fefl by just over one-third test yew to 901 . 
reflecting a trend of more grievances being settled by 
agreement 

He added also that although the number of compfa l nt s about 
mortgages was firing, there had been a sharp drop in comptakits 
about Investments, as societies had Improved their practices to 
teltog customers about the interest rates in obsolete accotxrts or 
todmply moving them out of obsolete accouits altogether. 

ombudsman win have greater powers, as his 
remftwai extend to complaints about a society's conduct before 
^^^^or Investment Is completed, if the transaction then 

Smaller companies slide 

con0,w « to Slide. The Hoare 


Wall Street 


Dollar dashes hopes of crisis-free summer 





T he dollar returned to 
plague the stock mar- 
ket again this week, 
less than two months 
after Wall Street traders 
thought they had put the US 
currency’s troubles behind 


It was in early May that the 
dollar last took centre stage, 
when its sharp decline spurred 
central bank intervention to 
halt the slide. At the time, the 
stock and bond markets both 
took big hits. Investors sold 
securities amid fears that the 
Federal Reserve would have to 
raise interest rates to protect 
the dollar. When fix* Fed did. 
that, and the dollar stabilised. 
Wall Street looked forward to 
a summer free of crises. 

Those hopes were dashed 
Oris week when another big 
drop in the US currency’s 
value - ou Tuesday the dollar 
fell to a post-second world war 
low against the yen of less 
then Y100 - sent stock prices 
plummeting. Apart from a 
brief midweek respite, the 
Dow Jones industrial average 
spent the week on the retreat. 

By 10am yesterday, the Dow 
had fallen 120 points, or 3 per 
cent, in slightly more than 
four days’ trading. Although 

A sign over the door 
of the Plaisterera 
Hall in the City of 
London, where Brit- 
ish Steel announces Its results 
twice a year, reads “Let broth- 
erly love prevail. ” *• Abandon 
hope all ye who enter here” 
might have been more appro- 
priate until recently. 

Not on Monday, though. 
After cumulative pre-tax losses 
of £204m in the previous two 
years, the company announced 
pre-tax profits of £80m for the 
year ended April 2. 

That in itself was no sur- 
prise, falling more or less In 
toe middle of the £60m to £95m 
range expected by the City. 
But the co mp any wn ghi ana- 
lysts on the hop by raising its 
final dividend from lp a share 
to LSp, mating a total payout 
for toe year of 2p, compared 
with lp for 1992/93. 

It was just what the City 
needed on a day when words 
like “meltdown" or even that 
hardy perennial, "billions 
wiped off shares”, were in the 
air. 

A SKp rise in British Steel's 
shares to 139p was one of the 
few bright spots among the 
predominantly red on 


bond prices fared a bit better 
over the period - the yield mi 
tiie benchmark 80-year bond 
edged slightly higher from 7.4 
per cart at the start of the 
week to 7.5 per cent early yes- 
terday - the mood remained 
nervous, even with encourag- 
ing news on inflation. 

The reasons for the stock 
market's decline were rela- 
tively straig h t f o r w a rd. While 
a weaker dollar pashes up 
import prices, investors were, 
not so much worried about 
imported Inflation as they 
were about the possibility that 
the Fed would have to raise 
interest r ates a gain to stop the 

currcuC/ from faTHiig fui'Uun** 

Althoug h yesterday's inter- 
vention by central banks 
enabled the dollar to bounce 
off its overnight lows against 
the yen and toe D-mark, inves- 
tors dearly believed the odds 
on another interest rate 
increase have rapidly short- 
ened, judging by their frantic 
selling of stocks «nd bonds on 
Friday morning. 

By ll^Oam yesterday, the 
Dow had fallen more than 50 
points, and the benchmark 30- 
year bond had dropped one 
and a quarto’ points, pushing 
the yield above 7.5 per cent 



3.850 ~ 


Source: FT Graphite 

The feet that stock and bond 
prices continued to fall while 
the dollar was staging a mod- 
est recovery suggested that 
there was something more to 
the markets’ decline than just 
currency and i n terest rate con- 
cerns. That something more 
was almost certainly earnings; 
inv e sto r s have been unnerved 
by recent profits warnings 
from US companies, and with 
interest rates apparently head- 


ire* 


ing even higher, the outlook 
for corporate ea r n ing s is sud- 
denly darkening. 

The massacre of technology 
stocks this week was a good 
example of how fears of weak- 
ening earnings are undermin- 
ing confidence in stocks. The 
rout started on Tuesday when 
Lotus Development announced 
that its second quarter profits 
would come in well below ana- 
lysts’ expectations. The news 


of Lotus* shares in a single 
day, and sported heavy sefflng 
thr o ughout a technology sec- 
tor already weakened by esti- 
mates of slowing computer 
orders and sluggish ivawuB i er 

OwmimI. 

After a brief recovery on 
Wednesday, technology stocks 
fell Anther as fresh bad news 
about a single co m p any (a loo- 
ker’s downgrade of Cisco 
Systems) sent shock waves 
throughout the sector. The 
declines were most pro- 
nounced among Nasdaq mar- 
ket stocks, and by Thunktay*s 
dose the Nasdaq composite 
index had dropped to its low- 
est level since hurt July. 

The dollar’s fall, toe pros- 
pect of higher interest rates, 
toe poss ibilit y of a slowdown 
in earnings growth, and more 
sodden and sharp sell-offs in 
the stock market have all 
made for a dispiriting start to 
the summer. As Thomas Gal- 
lagher, mana g ing director of 
capital commitment at broker- 
age firm Oppenheimer, said 
yesterday: "People are s tarting 
to lose some meaningful 
money in stocks and they are 
getting nervous.” 

There are pockets of sun- 


The Bottom Line 


Steel’s surge makes City beam 


toe Hreiitng screens. 

The shares have since 
slipped to close at 131p yester- 
day in a falling market Even 
so, they have recovered health- 
ily from the depths of autumn 
1992 when a price of 46 .5p 
tnaife dismal reading for inves- 
tors who had paid 126p in toe 
1388 privatisation. 

The recovery began when 
investors realised that the 
shares represented good value 
at that price compared with 
other Steel com panies , and 
also as an industrial recovery 
stock. US investors saw a dis- 
count in toe share price to tire 
book value, and bought 
heavily. 

In spite of the enthusiastic 
reception for the latest results, 
though, it is hard to malm a 
case for the shares to go mu ch 
higher - ev en though some 
were re commendi ng them as a 
"buy” at ISOp. The 1994 peak i$ 
L56Kp. 


British Stool 

Share price relative 10 the FT-S 6 -A toctoc 

110 


90 •- 
80 
TO 
60 
so 

40 




\r*j 

■v yv- 

— * 1 —. — 




u/ 


A 


r 




1991 


"... 83 . 

94 


SeweasFrGapW* 

Admittedly, pre-tax profits 
are likely to be much higher 
this year. Edward Hadas, ana- 
lyst at Swiss Bank Corpora- 
tion, has raised his forecast 
from £2S5m to £290m ami says 
British Steel could make £430m 
in fiscal i9S€. 

The dividend for the present 


year could be 3p a share or 
even 4p. and JL5p for Hw> fol- 
lowing year. 

Achieving that big rise in 
profits will be down mostly to 
getting better prices rather 
than increasing volumes: 
Hadas believes British Steel’s 
average prices could rise by 5 


per cent this year. With an 
Improved sales mix, that would 
be enough to achieve the pre- 
dicted rise. 

He points out that, In the 
second half of fiscal 2994, toe 
company’s operating profits 
were already running at two- 
thirds of the required rate, 
excluding the £24m provision 
for the fine Imposed by the 
European Commission for the 
company's part in an alleged 
steel beams cartel. 

For its part, British Steel 
says it has a reasonably good 
order book and demand in the 
UK is rising steadily, although 
the construction market is lag- 
ging behind the automotive 
sector. 

Importantly, the downturn 
In the continental European 
market appears to have 
halted. 

But all these developments 
seem to be reflected already In 
the share price and Hadas says 


shine amid the gloom, how- 
ever, moot notably in tense 
re ctor s where takeover activ- 
ity is still buoyant Cable tele- 
vision stocks remain flavour 
of the month, thanks to tbs 
string of recent deals involv- 
ing telecommunications and 
cable TV companies, and the 
financials sector has also been 
lively. 

Holders of Chicago-based 
financial services group 
Kemper were particularly 
happy this week when, oat of 
the blue, a counteroffer to G8 
Capital’s near-$3bn takeover 
bid e m erged from Conseco, a 
mao-known insurance holding 
company from Indiana. 
Kemper shares jumped 93% to 
962-% after Conseco offered 
93.25bn cash and equity for 
the company. Although Con- 
seco said Its offer would only 
stand until tomorrow, it was 
enough to scare off GE Capi- 
tal, which quickly withdrew 
its bid. 

Patrick Harverson 

Monday 3741.90 - 34JM 

Tuesday 3707.97- 3SJ» 

Wednesday 3734.77 + IBM 

Thursday 3699.09 - *948 

Friday 


that, on a prospective price/ 
earnings ratio of about 9 for 
fiscal 1986, the present price is 
“pretty fair**. 

Most analysts now view Brit- 
ish Steel as a “hold" and tome 
are few “buy” recommenda- 
tions. Perhaps the tints to do 
that has passed long since. 

Looking beyond the taamedi- 
ate outlook in the steelmartet 
there are both good and bad 
signs for investors. On the 
debit side. It fa probably wise 
not to expect much from the 
European Union’s heavily-crit- 
icised rescue plan for the steel 
industry. 

Capacity cuts wiU not in 
toemrelvre bring financial sal- 
vation to the industry and 4 
pledges. In any case, have yet 
to be implemented. 

More positively, the possibil- 
ity of a fiSOm investment in a 
steel plate mini-mill In the US 
will be an important step for 
British Steel and show that it 
Is ready and able to look 
beyond Europe to exploit 
opportunities elsewhere. 

It remains, too, Europe’s 
low-cost producer par excel- 
fence 

Andrew Baxter 



FINANCIAL TIMES WEEKEND JUNE 25/jnLTNE 26 1994 


WEEKEND FT IH 

FINANCE AND THE FAMILY / PENSIONS 


% 


f 




5 



Better - but not ideal 


Debbie Harrison looks at this week’s White Paper on pensions 


F or most consumers, the gov- 
ernment’s package Is a good 
deaL Prom April 1937. when 
the laws come into ef fec t, com- 
pany pensions will be more secure and 
personal penmans will be mare attrac- 
tive. But the regulatory regime is not as 
rigorous as the sys t e m proposed by the 
Goode report (see right). 

Here, we look at what the govern- 
ment has in minn 

COMPANY SCHEMES 
■ Is my pension more secure7 
Yes. A series of checks and haipwcps 
will ensure that employers, trustees 
and the professionals involved in the 
sc heme do their legally rfafincii job. 

■ win the law be enforced properly? 

Not necess arily. Goode's proposals for 
a proactive, independent super-regula- 
tor have been weakened seriously. 
Instead, the regulator will be a last 
resort. Moreover, instead of receiving 
independent funding from the govern- 
ment, be will be funded by the very 
schemes he is supposed to police. 

■ Will the value of my pension 
change? 

Yes. The good news is that pensions 
must increase each, year in line with 
i n fl ati on (capped at 5 per cent). But this- 
will apply only to benefits built up from 
the date the law comes into effect. 

The deferred pensions of early leavers 
- ie, the benefits left behind when an 
employee changes jobs - will be 
reduced in some cases because the new 
law will sever the link between occupa- 
tional schemes and the state eantings- 
related pension scheme (Serps). 

Most company schemes that link pen- 
sions to salaries contract the entire 
scheme membership out of Serps and 
pay reduced National Insurance contri- 
butions. To qualify for this, they must 
provide a replacement pension at least 
as good as Serps. 

This “guaranteed minimum pension" 
(GMP) normally must increase in line 
with earnings inflation or 7 per cent a 
year for early leavers who have 
deferred pensions. 

After April 1997, schemes contracted 
out of Serps win no longer have to 
provide that guarantee. Instead, they 
must increase all of the deferred pen- 
sion by price inflation capped at 5 per 
cent Where the GMP is a significant 
proportion of total pension, this will 
reduce the overall level of inflation 
proofing. 

■ How are transfer values affected? 

The law will allow schemes to calcu- 
late transfer values for younger mem- 
bers on a less favourable basis, so they 
could get less than at present 
■ Will I get my pension if my 
employer goes bust? 

Yes, but it could be reduced. The gov- 
ernment has adopted most of Goode’s 
proposals for a minimum solvency stan- 
dard to ensure that if the scheme ter- 
minates, there will be sufficient assets 
to pay members a transfer value and to 
secure payment of existing pensions. 
Bear in min d, however, that the calcu- 
lation of transfer values for younger 


members will result in lower payouts. 

■ Wm I receive foil compensation in 
the event .of fraud or theft? 

Not necessarily. The compensation 
fund will bring the fund up to 90 per 
cent of the solvency level, but this may 
not equate to 90 per cent of your full 
benefits. 

■ Will I have a greater say in running 
my scheme? 

Yea, but not as much as Goode recom- 
mended. Members of all types of 
scheme will be able to elect at least 
cine-third of the trustees. Goode wanted 
two-thirds for schemes where the 
investment risk falls on the individual. 

■ Will I get better information? 

Yes but it is up to you to complain if 
you do not understand. 

■ WiD there be better ways to resolve 
disputes? 

Yes. You should take the initiative 
and complain to the regulator if your 
company's disputes system is ineffec- 
tive. 

Caveat emptar, Alan Pickering, a con- 
sultant with actuary Watsons, says the 


regulatory regime will not be as rigor 
ous as that proposed by Goode. 
“Scheme members must take more 
trouble with their pension arrange- 
ments than they do now,” he stresses. 
“A lot is at stake. It is In members’ 
interests to understand their benefits 
and to watch out for any warning 
signs." 

PERSONAL PENSIONS 
There are two major changes here; age- 
related rebates and flexibility on the 
timing of foe annuity purchase. 

■ Who will benefit from age-related 
rebates? 

At the moment, the rebate of NI con- 
tributions for employees who opt out of 
Serps is a flat rate, apart from a small 
bonus for employees age-30 and over. 

The value of the Serps benefits 
increases with age, so at present, the 
rebate is good value for younger 
employees. Far older employees, Serps 
is better. 

Age-related rebates will certainly 
improve the terms for older employees 


but may reduce the terms for younger 
employees. 

■ Why do we need flexibility in the 
timing of the annuity purchase? 

At present, you must buy your annu- 
ity immediately on retirement Annuity 
rates, based on gilt yields, fluctuate dra- 
matically. If you buy at the wrong time, 
your income could be reduced by as 
much as 30 per cent 

After April 1997, you will be able to 
delay the purchase until up to age-75 
and. in the meantime, draw down an 
appropriate annual income from your 
pension fund. The remainder of the 
fund will continue to benefit from 
i nvest ment returns. 

William Burrows, director of Annuity 
Direct, says: “These proposals overcome 
the main disadvantage of the present 
rales which force people to buy annu- 
ities when they retire, even though 
annuity rates may be very low. 

“Until 1997, there are existing oppor- 
tunities for those who want to defer the 
annuity purchase, but you should seek 
expert advice." 


What’s Goode for you . . . 


R obert Maxwell’s raids 
on his group’s pen- 
sion funds forced foe 
government to 
review the law intensively to 
find how to improve protection 
for scheme members. In Octo- 
ber 1993, professor Roy Goode. 
ch ?ir Tnfl ' n of the government - 
appointed review committee, 
produced a 1,000-page Pension 
Law Reform Report containing 
218 recommendations. 

The White Paper published 
this week set out which of the 
proposals the government 
would adopt hi foil, which it 
would water down, and those it 
would ditch. 

For most scheme members, 
though, there is one Issue on 
which Goode's recommenda- 
tions and the White Paper mea- 
sures will be judged: namely; 
to what extent has foe security, 
of pensions been improved? 

How do foe government's 
plans accord with the report? 

GOODE’S PROPOSALS 
IN BRIEF... 

■ A pensions act to enshrine 
in law the employer’s “pension 
promise" and to protect mem- 
bers’ benefits earned already. 
Adopted. 

■ A pensions regulator to have 
supreme authority over com- 
pany pensions with power to 
intervene and impose sanc- 
tions. Watered down. 

■ A compensation fund to pay 
out in the case of fraud, theft 
and misappropriation of pen- 
sion fund assets. Adopted 
■ A minimum! solvency stan- 
dard to ensure that, if the com- 
pany fails, the fund ban 
enough assets to meet its lia- 
bilities. Adopted 
■ A system to check that 
employers have paid their con- 
tributions. Adapted. 

■ Greater power for the Occu- 
pational Pensions Advisory 
Service (OPAS) and the pm- 
sions ombudsman, plus a 
requirement for employers to 
set up internal machinery to 
deal with disputes over pen- 
sions. Adopted i 

■ More power for trustees, 
who would also be liable to 
c riminal proceedings if they 
foil to protect members’ rights. 
Adopted 

■ A statutory requirement fix- 
members to be represented on 
trustee boards - up to one- 
third for final salary schemes 
and two-thirds for money pur- 
chase schemes. Watered down. 

■ Greater access by members 
to information, which should 


be explained in plain En glish 
Adopted 

...AND IN DETAIL 

□ Pensions act and regulator. 
Goode recommended that trust 
law. which separates foe pen- 
sion fund legally from the com- 
pany's assets, should continue 
but should be strengthened by 
a pensions act administered by 
a regulator. 

Since trust law is complex 
and fll-defined, the act would 
enforce the “pension promise" 
- that Is, members’ basic 
rights to a pension based on 
past service and contributions 
paid. Employers wonld be 
required to make dear their 
pension obligations in the con- 
tract of employment 

The act would make clear 

Last October ; a 
committee set up 
by the government 
produced a report 
containing 218 
recommendations . 
Debbie Harrison 
looks back . . . 

the trustees' primary duties to 
members and their families. To 
enforce it, Goode wanted a reg- 
ulator with absolute authority 
over occupational schemes and 
power to intervene and impose 
sanctions on wrongdoers. 

□ Compensation scheme. 
Goode recommended that this 
should cover all occupational 
pension schemes with an iden- 
tifiable fund, including 
schemes run by insurance 
companies. The scheme would 
not offer protection on an all- 
risk basis, though. 

Instead, it would pay out in 
the case of proven fraud, theft 
and other misappropriation. 
Other events, such as bad 
investment decisions leading 
to insolvency, would not trig- 
ger compensation. 

The compensation itself 
would tafa* the form of a loan 
repayable from any pension 
fund money recovered, and 
would be funded by a compul- 
sory post-event levy on all 
schemes. 

□ Solvency. Goode said that 
the level of funding backing 
the pension promise was cru- 
cial and recommended a mini- 
mum solvency standard to 


secure the pension rights of 
members. 

The solvency level would be 
monitored regularly by the 
trustees and scheme actuaries. 
If a fund fell below foe mini- 
mum. there would have to be 
an immediate injection of cash, 
falling which the trustees 
would have to recover the 
funds from foe employer. 

Actuaries get very excited 
about the solvency issue. For 
scheme members, however, 
there is only one point to con- 
sider. 

Since the compensation 
scheme would not cover all 
risks, the fond should - in the 
event of an employer going 
bust - have enough cash to 
provide adequate transfer val- 
ues for present and deferred 
members, and to buy annuities 
to replace the pensions already 
in payment 

(Deferred members are for- 
mer employees who have left 
their pension benefits behind 
on changing jobs. Annuities 
are sold by life offices which, 
in return for a lump sum 
investment, guarantee an 
agreed income for life). 

□ Member trustees. These 
are the legal owners of the pen- 
sion fund and have a duty to 
pay the promised benefits to 
members and their families. 
Goode called for more repre- 
sentation for members on 
trustee boards, except for very 
small schemes. 

At present, an estimated one- 
third of schemes appoint trust- 
ees solely from the company's 
management - a system that 
can lead to abuse. 

Goode recommended that 
where the investment risk fell 
on the employer - as is the 
case with schemes that link 
the value of the pension to 
employees’ final salary - the 
balance of power should be 
retained by the employer, 
which should have a two-thirds 
majority on the trustee brand. 

Where the investment risk 
fell on the individual - as is 
the case with money purchase 
schemes that offer pensions 
based purely on investment 
returns - the balance of power 
should be held by scheme 
members, who would form a 
two-thirds majority. 

Goode also wanted trustees 
to have more power over the 
professionals they appointed to 
ran the fund. In turn, the lat- 
ter would have a legal duty to 
report any “serious or persis- 
tent irregularities”. 


'• &■ --a •• <■ . 



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bWt Tkapkm V— amm+k*— kMonk mim 


FT 02 


S even of the 12 regional 
electricity companies 
report their results 
nest week, beginning 
with Norweb and Seeboard on 
Monday. 

The seven- will not want to 
increase their profits by a 
much larger percentage than 
the 15 to 20 per cent 
flTmnimead already by the rest 
of the pack. Doing so would 
attract unwelcome attention 
from consumers and the regu- 
lator just ahead of the most 
important review of prices they 
are likely to face. 

Norweb is expected to 
announce pre-tax profits of 
about £175m, against £157m, 
and a dividend of about 2Z£p, 
op from 20p. Seeboard is pre- 
dicted to announce £125m 
(£ll3m) pre-tax and an 11.6p 
(10p) dividend. 

On Tuesday, Midlands is 
likely to announce about 
£200m pre-tax (£167m) and a 
23p (20p) dividend. On Wednes- 


day, Northern should 

fl yiprtinyrw shout (£11 lm) 

and 246p (2l.4p) and Eastern 
about £220m (£i83m) and 22p 
092 p). t .. 

On Thursday, SWEB should 
achieve £115m (£101m) ami 
23J3p <20p). Yorkshire will 
bring the show to a dose an 
Friday with about £l75m 
(fififim) and 23 5p (20.4p). 

□ Atrtnurs, the tour group, is 
due to report first-half results 
on Monday, with pre-tax losses 
expected to be about £l8m 
after a profit of £3J5m from dis- 
posal of fixed assets. This com- 
pares with £6 -9m last time 
before the expenses of Air- 
tours' foiled bid for its rival. 
Owners Abroad. 

The loss will occasion no sur- 
prise; travel companies usually 
matte first-half losses. Nor Will 
the size of the loss be unex- 
pected; Airtours said this 
would not exceed £l8m when it 
launched a rights issue in 
April. 



~ BPB Industries, Europe’s 
biggest plasterboard maker, 
has seen a sharp rise in mar- 
gins since a price war between 
it and two Continental compa- 
nies - Lafarge Coppee of 
France and Knanf of Germany 
- ended more than IS wmths 
ago. 

Pre-tax profits of about 


£100m are expected for the 
year to the end of March when 
BFB announces its annual 
results on Thursday- This com 
pares with £57 the previous 
year, but is still wen short of 
the peak of mote than £200m 
earned five years ago. 

□ Asda, the supermarket 
group, reports its full-year 
results on Thursday and Is 
expected to post pxe-tax profits 
of around £i9Qm, little changed 
from the QftMm reported the 
previous year which Included 
exceptional credits of £6&2m. 

□ Vendome, the £3Jm luxury 
goods group spun off from the 
restructuring of Bothmans last 
October, is expected on Friday 
to report profits of at least 
£205m for the year to end- 
Maxcfa - ahead of a pro forma 
£1 87.8m. The group, which 
numbers Cartier gTV * Dunhiil 
among Its brands, will also be 
reporting exceptional charges 
of more than £20m, mostly 
made up of restructuring costs 


Directors’ transactions 

Buyers take 
advantage 


Whenever the market 
experiences some slow-down, 
directors tend to use the oppor- 
tunity to buy shares. This is 
proving to be the case at pres- 
ent Over the past six weeks or 
so, there has been a steady 
level of buying across all sec- 
tors. 

□ Competing company ACT 
Group announced results the 
day before directors bought 
stock on the market Following 
an additional announcement 
warning that profits in the 
present year were going to be 
affected adversely by product 
development costs, the price 
fell sharply. 

At the lower share price 
level three directors - Roger 
Foster, the chairman, Michael 
Hart, the managing director, 
and Dr Gwyn Jones, a non-ex- 
ecutive director, bought a total 
of more than 129,000 shares at 


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THE M&G GROUP 



MKCTORS* SHARK TRANSACTIONS IN TtWR 


prices between 130p and I31p. 
U Porter Chadbnrn, the lei- 
sure goods distributor, also 
annmmrwl final results during 
the week. The group recorded 
a pre-tax loss of £17.2m com- 
pared to a loss of £&6m for the 
same period last year. 

Nevertheless the chairman, 
Patrick Barrett, remained con- 
fident about the future and 
three directors. Including him- 
self. and the chief executive. 
Tony Philipson, all bought 
stock at 32p. 

£ Phillip Kaye is the largest 
single shareholder on the 
board of City Centre Restau- 
rants. Prior to this recent sale, 
he held mare than 2 per cent of 
the company. This stake has 
now fallen to about L6 per cent 
with the sale of lm shares at 

82p. 

Vivien MacDonald 
The Inside Trade 


OWN G 

tomPMm 

ES (LISTED ft USM) 





No of 

Cowpany 

Sector 

Share* 

Vatu* 

dkectora 

SALES 





Bontoto 

RatG 

20.000 

24 

2 

SrtadiRttnga 

Dtat 

20.000 

17 

1 

Qty Gantt* H— fan 

LSHI 

Ijnoboo 

820 

1 

Gbao HoUng* 

n»m 

71,500 

420 

1" 

) bdong Pawaoop 

Text 

387296 

8S1 

1 

Jarva Porsar Gp. 

— .PP8P 

1213.348 

208 

4 

Marks & Spanoar 

RetG 

62.090 

256 

1“ 

Sown Hoatti Cara 

Htm 

75.000 

240 

1 

The Boots Conwany — , 

HetG 

12^00 

66 

1* 

PURCHASES 





ACT Group 

SSer 

129.425 

168 

3 

Amartcan Trust 

tavT 

11A00 

30 

1 

British Mohair 

Text 

10.000 

18 

1 

Dawson total 

Text 

141.041 

190 

3 

aocp) 

Eng 


22 

1 

Garrard & Nadonal 

OthF 

2JS00 

10 

1 

■ »- -» — 

MBnfc 

12.500 

37 

2 

Mggs&m 

BCon 

20.000 

21 

1 

Johnston Group 

_BMSM 

10400 

24 

1 

LaM Group 

EngV 

74)00 

28 

1 

Uoyds Chamsts 

RetG 

7300 

23 

1 

Manchester (Jnrted 

LAW 

70.000 

431 

1 

Marks a Spencer 

RotQ 

6500 

26 

1 

Narcos 

-BM6M 

13,400 

18 

1 

Portals - _ 

„PPiP 

20,000 

132 

2 

Porter Chadbum 

DM 

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Rolling settlements 

Big day gets 
ever nearer 


T here to only one com- 
plete stock exchange 
account period left until 
rolling settlement begins on 
July 18. 

The stock exchange divides 
the pear np into account peri- 
ods, named by letters of tha 
alphabet We are now in the 
middle or account period K, in 
which the last day for deabugs 
is July l. 

All trades conducted any 
time in the account period, 
which began on June 30, are 
totalled and a stogie Mil for 
the net amount Is sent out It 
has to be settled on My 11. 

This allows some investors 
(particularly, those who have 
dealt early to the account) up 


to 13 working days to settle 
thrir aceoOBte. 

The system afiowtog them to 
settle the net amount Is usatol 
fur all investors, and espo- 
dafiy s pe culato r s who aha to 
buy and se ll at a profit wtthto 
tiw same account. 

XT anccessfrO, they can make 
mousy without ever having to 
put up a penny or their own 
money, 

Account periods win disap- 
pear from July lft, although 
Investors who dealt in the last 
period - account N - can stffl 
settle to the usual way on July 

25. 

From July lft, the settlement 
day will be 10 woridnr days 
after dealing day - or T+lQ, 


PRELIMINARY MELTS 


SaMar M 


praSI pwam* par 

fcOMI W • I 


MMpMB 

BdMa Mar 

788 

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13 

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06 

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670 

(437) 


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awoo 

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15A 

(127) 

mo 

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toyWft 

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28 

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7m 

128 

(uq 

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ttm 

CaaarAWa 

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damn 

459 

m 

200 

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45200 

05800) 

358 

(25D 

152 

dto 

CarDMdbaVMar 

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<140 

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(7250 mo (1700) 

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5310 

0850 

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MOTTS ISSUES 


CM* Alan to to waa 5323TI Nta a 1 - 3 ritffe haue U itto. 
Onq4MMStDratoS47riii*ift6-'8r(gMiliawa tap 


OFFERS FOR SALE, PLAdltOS A gtTWOPUCTIOmU 


Mandeld UotaDritatTaa Cl ^ 

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IMad Caamlo ItatadaM Is oon*ig to M ipariat w«t a Mmw o) C# . m. 








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f 


I 


i 



FINANCIAL. TTMES WEEKEND JUNE 25/JUNE 26 1994 


FINANCE AND THE FAMILY 


WEEKEND FT V 





h 






3i floats as others founder 

John Gapper analyses the prospects of a venture that is looking to the long term 



L i£e a large ocean 
liner sailing calmly 
onwards while 
smaller vessels 

founder in increasingly choppy 
seas, 3i announced the terms of 
its long-promised flotation thfe 
week. Despite heavy fails in 
the London market, the bank- 
owned venture capital com- 
pany refused to be diverted. 

Retail investors are to be 
offered up to £i78m of equity 
from its £71 1m notation at 272p 
a share. The company and its 
advisers are not too worried 
about whether they take it up, 
since the institutional funds 
which are buying the other 
£533m are prepared to siwk up 
any excess. 

It was difficult to find too 


many sceptics about ftip value 
of the £ offer this week. The 
company, which is the largest 
European investor in unquoted 
companies, has attracted a lot 
of interest from professional 
investors. 

The shares were priced at a 
135 pm- emit discount to net 
assets. This is a little more 
expensive than other quoted 
investment trusts, the sector it 
is joining for tax reasons, but 
advisers say its portfolio is 


worth more than others 
because of its bias towards 
smaller, unlisted UK compa- 
nies. 

Since institutional funds bid 
for £1.2bn at the offer price 
after being canvassed on a 
range of prices, 3i's advisers 
are confident of a good “after- 
market” in the shares. In other 
words, they are expecting at 
least an initial rise above the 
offer price when dealing starts 
on Monday July 18. 


The institutional funds have 
been attracted by several 
aspects of 3b 

■ Because it is so large, with a 

market capitalisation of 
£L58hn at the offer price, it is 
likely to enter the FTSE 100 
(Footsie) thiit year. 

This gives it an automatic 
appeal, because most funds 
need to have 3i shares to give 
them a weighted bolding of the 
index. 

■ Si’s range of investments in 


3,500 small and medium-sized 
unquoted companies gives 
investors a rare chance to 
malm an indirect investment in 
the sector, which tends to out- 
perform the overall growth 
rate as the economy recovers. 
■ The company appears to be 
managed effectively and, 
unlike the seven, high street 
banks which have owned it 

nirHl nOW, hftg not any 

significant lending blunders. 

These factors have helped to 
attract significant interest 
arming the more affluent indi- 
vidual Investors (whom 3fs 
advisers have dubbed “Jer- 
emies" in contrast to the more 
down-market Sid who was tan 
geted for the British Gas priva- 
tisation). Some 385,000 individ- 
uals pre-registered for details 
of the offer. 

Unlike BG and other utility 
privatisations, though, 31 does 
not offer the same possibilities 
for making a quick profit. 
“This is not a slagging issue." 
says one analyst 

Ewen Macpherson, Si's chief 
executive, adds: “We are 
looking for Investors who 
know what they are doing and 
are buying for the long term.” 

Ih its mar keting push, 31 
targeted people who would 
hold shares as part of a portfo- 
lio. The “Jeremies” it seeks 
will have to spend at least 


£1,020 on a 3i stake - the value 
of the 3 75 shares which have 
been set as the minimum 
investment - but the company 
has estimated there are lm 
such investors. 

Arguing that an investor in 
the UK small company sector 

iS taking no r isk might seem 

odd, given the wave of small 
company failures early in the 
1990s. Yet, Si's risk is less than 
might appear, given the spread 
of its investments across, 
regions and industrial sectors. 

Academic studies have found 
that 3i’s portfolio is less vola- 
tile than any individual indus- 
trial sector or quoted company. 
Nonetheless, the gearing effect 
- under which compa- 

nies perform better than the 
average in recoveries and 
worse in recessions - should 
be taken into account. 

One analyst argues that 
there are two possible 
approaches to 3i for an individ- 
ual investor. One is to treat the 
shares as a long-term invest- 
ment through rough and 
smooth. A more adventurous 
one is to buy in recovery and 
by to sell at the point when an 
economic downturn is about to 
strike. 

The implication of either 
approach is that 3i is floating 
at a good time for investors. 
The biggest gains from eco- 


nomic recovery are past - but 
Si points out, in its note on 
prospects, that the health of its 
British portfolio “has stead- 
fly improved in the past year”, 
a trend which is continuing. 

Share applications are avail- 
able from Lloyds Bank, the reg- 


istrar, and must be submitted 
by July 6. The allocations of 
shares will be announced on 
July 8, and share certificates 
will be sent on July 15. 

■ This week's other new 
issue. Eurodollar, is examined 
in UK Company News. 


NEW INVESTMENT TRUST LAUNCHES 

— ttaoets — — Outside PB> — 

baua WWiwm Htimn Acral 
52a HbM PSP SMnsa Pm OKI tta. Qmo* 

Mnagv (Triepbon) Kotor Sector Warnfe tin % Quaff Sdnane P P E % 

— kstia PEP — 
UUman mu 
mat Bangs 

E % 

Ofer Mod 

■ INVESCO Japan Discovery 

■wesco Asset management (0800 010333) 

Panmure Gordon Japan nfe No Yes loop 95, Ip 1,000 IK 

Specialising in Japanese smafler companies, to be run by manager of Invesco’s Japan Smaller Companies unit bust 

n/a 

n/a 

14/7/94-29/7/94 

■ Old Mutual South Africa Trust 

0W Mutual (071 772 2173) 

SmHh New Court Emerging Mkts 1:5 50 n/a No No lOOp 95Jp 

The UK's first South African Investment trust, specialising in smaBar and medium sized companies 

1,000 

1% 

n/a 

nfe 

23/BS4-1/7/94 

■ Schroder Japan Growth Fund 

Schroder Investment Management (0800 526535) 

Smith New Court Japan IS 10G+ nfa No Yes lOOp 95£p 

General Japanese fund tram the Schroder stable, which already runs several Japanese unit busts 

2,000 

1% 

n/a 

n/a 

7/BM-3QM4 

■ 31 

3t (0845 313131) 

Baring Brothers Ventura Cap n/0 I.Gto 3% No No 272p 314.4p 

The giant Investment capital fund finaly comes to market as the banks sal part of their stake 

1,020 

n/a 

rfa 

nfa 

22/8/94-6/7/94 







Diary of a Private Investor 

The right to 
be informed 


S hare dealing in the UK 
is under dose scrutiny. 
In February, the Seat 
rities and Investments 
Board (SIB), the industry's 
watchdog, issued a discussion 
paper on “Regulation of the 
United Kingdom Equities Mar- 
ket". The deadline for submis- 
sions has just ended. 

The paper noted: “There is 
analysis which suggests that 
retail dealing costs are high 
when compared with institu- 
tional dealing costs and are 
also high when compared with 
retail dealing costs in other 
European equity markets " 
Early this month, it was 
announced that the Office of 
Fair Trading had begun an 
investigation into market-mak- 
ing in shares on the London 
Stock Exchange. It remains to 
be seen if either inquiry bene- 
fits private investors. But one 
section of the SIB paper dealt 
with “well informed markets” 
and commented: “Market regu- 
lation should aim to enable 
market participants and users 
to be well informed for the pur- 
poses of making their trading 
conditions.” 

As private investors pay 
more than institutional inves- 
tors to deal in shares, surely 
they should he treated better 
when it comes to getting infor- 
mation from companies. At 
present, institutions are 
allowed swifter access to infor- 
mation (and given more of it) 
than private investors. 

There is, for instance, the 
matter of annual general meet- 
ings. Far too many start at 
highly inconvenient times - 
such as 9.30am in London or 
10.30am in Glasgow. This 
means that many private 
investors cannot attend unless 
they are willing to spend 
money on setting off the previ- 
ous day from their distant 
homes and staying overnight. 

Unless there are good rea- 
sons for bolding early-morning 
AGMs (and I cannot think of 
any), they should start no ear- 
lier than Ham. 

The timing of certain com- 
ments and ann ouncements 
aj yn leaves much to be desired. 
It, for instance, a company^ 
directors wish to discuss their 
results with analysts on the 
day of an AGM, this should not 
happen before the meeting 


and/or the release to teletext 
services of the chairman’s 
AGM statement 

For that matter, many com- 
panies do not make enough use 
of teletext on BBC 2 and Chan- 
nel 4. Any major announce- 
ment by a company to the 
stock exchange should go to 
teletext simultaneously. 

I would also like very much 
to see a ban on companies 
matting non-urgent announce- 
ments to the stock exchange at 
times - such as Friday after- 
noons before bank holidays - 
when press coverage of then is 
likely to he limited. 

The same goes for companies 
which announce poor results. 
These should have the widest 
possible publicity. So, why are 
companies allowed to publish 
them on a Friday afternoon or 
(worse stiff) on Christmas or 
new year's eve? Institutional 
investors get the tecta almost 
immediately via their trading 
screens. But the pom- private 
investor could well have to 
wait several days before a 
press report appears. 

Infltyd| companies sh o u ld be 
forced to send all shareholders 
(by first class post) full details 
of any “had news” results at 
the same time they are deliv- 
ered to the stock exchange. 

Then there is Crest, the pro- 
posed new share settlement 
system, and the moves to 
rolling settlement within a 
strictly limited time. These will 
force many more private inves- 
tors to use nominee services. 

As a result, company reports 
and circulars will go straight 
to the nominee rather than pri- 
vate investors. Anyone using 
such a service should have the 
right to demand that listed 
companies send such reports 
and documents direct to inves- 
tors - and at no extra cost 

SIB’s discussion paper said: 
“To a greater extent than in 
the case of any other national 
securities exchange, trading on 
fha r ■nnrinT' stock Exchange is 
dominated by institutional, 
large size dealing . . .” Perhaps 
if some (or all) of the above 
suggestions were implemented, 
the situation might improve 
for private investors. 

Kevin 

Goldstein- Jacks on 


m-Jk- 

The time is 
now. 

Deadline: 30th June — 10.00 a.m. 
Have we received your application?* 

ir jmu have any queries call now oil 0800 526 535 

preference may be ghnai lo early vaBd applications. 

UiwsanenM awl d«* >*•»“ r «“ **■ “■ f° *■" m “ 
mj- n« go “ M “ u unvt Ud.Th is 

* Muet ** SchH * er lnvame “ ■ 
number <rf IMHO. 

I Schraders 




1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

Soares: Mcropal, offer to offal gross income reinvested in US Dollars horn 1 3.84.-13.94 


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VI WEEKEND FT 


crMANfCTAL TIMES WEEKEND JUNE SS/JUNB 26 1994 


FINANCE AND THE FAMILY 


T here are no maverick 
managers at Schro- 
ders, according to 
John Henderson. He 
is manag in g director of Schro- 
der Parso p^Jto veatxnent Man- 
agement (SPIB4), the private 
client arm of the merchant 
hanWnp anH investment man- 
agement group. 

"This is a very disciplined 
and conservative house,” adds 
Henderson, who describes its 
style as “research-driven, low 
turnover, international.” He 
adds: “All the tn uHs hn ant man- 
agers follow the Schroder 
house view. They have the 
opportunity to feed in their 
thoughts as to the relative 
attractions of a sector but, 
once the committees have 
decided the direction Schroders 
should go, everyone follows." 

Take last year, when Schro- 
ders decided to reduce its 
Pacific rim investments and 
Increase its exposure in Japan. 
The shift in asset allocation 
was reflected in every Schroder 
portfolio; only the percentage 
weightings varied to reflect a 
client's particular require- 
ments. 

Schroders has 383 managers 
and analysts world-wide, and 
LQQO investment staff. “With 35 
offices in 27 countries, 1 would 
suggest that we are the most 
trrtpmati final of the merchant 
banks,” says Henderson. This 
international dimension no 
doubt owes something to the 
philosophy of the company’s 
founder, John Henry Schroder, 
who moved to Loudon from 
Hamburg in 1804. 

The bank made its first 


investment in Japan in 1870 
and established a New York 
presence in 1823. Today, more 
than half Schroders’ 3^00 staff, 
and 50 per cent of its operating 
capital, ar e em ployed In offices 
overseas. SPHf manages port- 
folios in 10 currencies, tradong 
many different benchmarks, 
and Henderson describes the 
growth in overseas clients as 
“spectacular”. 

The team approach is central 
to ftp company's management 
of private cheat money. Each 
rficnt is looked after by three 
managers - an investment 
director, an tpy p c tmpnfr man- 
ager and an administrator - 
who decide overall investment 
strategy and diversification. 
Long-term strategy is deter 
min ad by the senior directors, 
advised by the Schroder econo- 
mists and the heads of regional 
equity and fixed interest 
tome, while tscHcai asset allo- 
cation is the preserve of a spe- 
cialist team. 

Present portfolio weightings 
are gilts, bonds, and cash (14 
per cent); UK equities (55 per 
cent); North America (4 per 
cent); Japan (10 per cent); 
other Far East markets (5J> per 
cent); con ti n en ta l Europe (7.5 
per cent) and emerging mar- 
kets (4 per cent). 

Stock selection is delegated 
to other specialists and there is 
a selected equity list of 186 
shares. Any stock not on this 
list is on triaL Henderson says: 
“Investment managers know 
that if they want to invest in 

gmmpthfng that jg not OH the 

sett, their necks are on the 
block.” 


i Seeing how other people manage money helps you to manage your 
own better. That is trie theory behind our new series by Joanna 
Slaughter on private client investment managers. 

To get the most from the series, you should note carefully what 
the managers do and what they avoid. As professionals, most oj 
them invest according to a definite system. They will, for instance, 
have a method for deciding on overall asset allocation — which 
countries and which types of shares. And they will have another 
for picking individual shares. They do not rely on hunches or 

insider information. . _ 

Over the next few weeks \ we will be talking to a selection oj 
firms in the City of London. This week: Schroders . 


Certainly, managers who do 
not provide performance for 
private clients appear to have 
no hiding place. The three 
executive directors of SPIM 
review individual portfolio 
diversifications at least each 
quarter and monitor the com- 
parative performances. 

Schroders has been manag- 
ing private c l i e nt money since 
the turn of the century and it 
still looks after the descen- 
dants of its first customers. 
Henderson describes the com- 
pany as “a family hank " where 
“people stay and clients form a 
relationship with an invest- 
ment manag ement team that 
can last for generations”. 

Solicitors and accountants 
are the source of 80 per cent of 
all new clients, and Henderson 
is used to fi ghting the firm’s 
comer in fiercely-contested 
beauty parades. Last year, 
Schroders won 106 new private 
clients and lost one - a Swiss, 
who was unhappy with the 


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The launch of Save & Prosper’s new Southern Africa 
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THE INVESTMENT HOUSE 





house emphasis on equities. 
Henderson says: "If we do a 
good job for the client of a 
solicitor, he will put us in the 
beauty parade when another 
client comes along. We are 
never handed anything on a 
plate. It is a jungle out there.” 

Even the Schroder name 
does not necessarily open 
doors. “MOst people thin k we 
are a German kitchen manu- 
facturer," Henderson notes. 

Clients’ formal fees axe 
based on the size of their port- 
folios and the complexity of 
their demands. Henderson 
points out “We have the best 
incentive to make the portfolio 
perform well, and to minimise 
risk. We have no conflict of 
interest” 

Although Schroders has a 
large derivatives team, it uses 
only currency hedges for pri- 
vate clients. Henderson says: 
“We very rarely hedge out of 
the base currency of the post- 
folio, and we have no currency 


hedges outstanding at the 
moment for oar sterling cli- 
ents. We want to stick to what 
we have a record of d oi ng well, 
which is fundamental invest- 
y i u» nt wmnflpwpwt and funda- 
mental sector r esearch -” 

An initial ££00j000 is need ed 
to became a Schroder pirate 
client, and individual client 
money ranges from this mini- 
mum figure to £l00m. It is 
something of a surprise, there- 
fore, to team that nearly all 
clients invest to some extent in 
Schroders’ own products. 

"We have porifoSas af £20m 
invested entirely in our unit 
trusts,” says Hexxterson.'There 
is often a misconception 
among the public that Unit 
trusts are only for the smaller 
investor - and , of course, a 
unit trust does not have the 
same excitement at tire golf 
dub as a portfolio of shares. 
Yet, the bigger the dlent, the 
Myr the tax and grfmtnfytf ra- 
tive benefits of a unit trust” 


The ewe unit t rust f or pri- 
vate clients is the £60m Schro- 
der World fond, which is open 
also to any non-client with 
£1.000 to invest The fund, 
which has 380 stocks in Its 
portfolio and Is used for all pri- 
vate clients with less than 
£500,000. produced a return of 
more 30 per cent last 
year, and its geographical 
divezrificatkm makes It a shop 
window for the firm's invest- 
qVilTp 

A “cocktail” of Schroder unit 
trusts is constructed for those 
with assets of more than 
£500.000. Direct equity invest- 
nsent usually is confined to ch- 
eats with more than £2m. 

The Schroder view is that 
portfolios should include at 
least 25 stocks in each 
sector, and Hender son argues 
that toe risk of a direct equity 
investment is too high for any 
investor with less than £2m. “It 
doesn't give any scope to trim 
the holding and it restricts the 
flexibility of toe manager, so 
cheats do not get the added 
value that Schrodera should be 
able to bring.” 

Liquidity in clients’ portfo- 
lios is low but managed 
actively. Henderson explains: 
“Because we are long-term, 
cautious and conservative 
investors, if a client needs 
funds in the next two yearn, we 
will raise the money today and 
hold it in low coupon, short- 
dated gilts. 

“We will always have at 
least 10 per cent of the portfo- 
lio at 24 hours’ notice. Nothing 
is locked In for longer than one 
month unless the client has 







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sanctioned us to invest hi ven- 
ture capital.' 

Prospective private clients 
certainly need to be co nv in c e d 
of the Schroder investment 
pedigree because they may be 
asked to liquidate their exist- 
ing portfolios so the firm's 
investment managms can start 
with a clean sheet, especially if 
the unit trust route Is to be 
followed. 


The acceptable face of insurance 


Anthony Bailey finds that an industry hit by bad publicity has its good points, too 


T here is a danger that 
bad publicity sur- 
rounding the life 
insurance industry 
will deter consumers tram buy- 
ing much-needed products. The 
most basic of these is life 
insurance, although it goes 
under less obvious names such 
as “term” and “protection- 
only" insurance. 

The problem is that life 
insurance has strayed for from 
its roots. Much of the premium 
income earned by life compa- 
nies does not pay for insurance 
but, instead, is invested to pro- 
duce a return. Yet. policies 
which avoid any link with 
investment, can be basic tools 
of financial planning. “The 
most obvious area for life 
insurance is to provide protec- 
tion. We give the cheapest and 
best organised term insurance 
in the world,” says Peter 
Smith , of ftnanriflT adviser WTU 
Marto v 

□ Term or protection-only 
cover is essential for anyone 
whose death would leave 
dependents worse off. That 
usually means the main 
earner, but it can be worth 
buying cover fix- a non-work- 
ing spouse as well if his or her 
death would mean extra 
expenses for such thing s as 
i-hfiri care. 

There is a range of policies 
on. the market which pay out 
l ump sums or fixed incomes or 
can be used for Increasing 
incomes. A competent adviser 
should be able to suggest the 
most suitable. Short-term poli- 
cies can be nsed in conjunction 


with inhprfH>TV» tax planning . 

H Mortgage protection policies 
are a variation on the lump 
sum Designed to settle 
an outstanding repayment 
mortgage, the level of cover 
decreases as the outstanding 
capital diminishes. This can 
make them especially good 
value. 

3 Critical illness cover is a rel- 
atively recent development 
which might appeal even to 
those without dependents. It 
worts in much the same way 
as term insurance - with the 
crucial that it will 

pay out before you cfle if you 
get a verified serious Alness. 

C Permanent health insurance 
also pays out while you are 
alive. The payment comes as 
income and is not restricted to 
serious illnesses. It is a form of 
<eMr pay, gh/yiiri be consid- 
ered by the self-employed and 
those who work for an 
employer with a niggardly sick 
pay Scheme- 

Getting advice an toe best 
policy, however, is more impor- 
tant than with some other life 
products. You have to Tnafcg 
sure you get a policy which 
starts paying out when you 
win need the money as there 

are de fa mwnt tfmt>^ - 

the first period of an fitness 
when nothing is paid. You also 
need to watch out for exclu- 
sions. 

□ Private medical insurance is 
an oth e r area where life compar 
nies have become more active 
in recent years. Bupa (the Brit- 
ish United Provident Associa- 
tion) is generally synonymous 


with this type of insurance and 
remains the market leader. 
These days, though, there Is a 
wide choice of policy and pre- 
mium, from budget cover (to 
beat National Health Service 
waiting lists) to RoQfrRoyce 
cover (which pays for most 
things, including stays in 
exclusive private hospitals). 

What about those policies 
which provide investment? The 
illogical combination of Invest 
meat with insurance has 
evolved fix two reasons: 

■ Tax relief on premiums, cou- 
pled with taxation of a life 
fund’s investment returns 
(especially in qualifying poli- 
cies) did provide a degree of 
tax efficiency - although 
mostly for higher-rate taxpay- 
ers. But premium tax relief 
was abolished 10 years ago. 
Meanwhile, Peps and Tessas 
now give better ways of shel- 
tering returns from tax. 

■ Life companies believe that 
policies which pay cut only an 
death are hard to selL Invest- 
ment-linked insurance prom- 
ises a return, even if people sur- 
vive. But life company 

that they ensure people get fife 
cover by selling town invest- 


ment plans are, largely, spe- 
cious. 

Even where there is signifi- 
cant life cover, as with endow- 
ments linked to mortgages, 
many people surrender policies 
early. And many pofides have 

minimal Ufa COVST, providing 

instead long-term, inflexible 
and tax-inefficient savings 
schemes. 

Unfortunately, there are no 
serious plans to decouple* 
insurance and investment. So* 
life company promises to clean 
up their act and ensure setae 
staff are better trained to 
fixture look hollow. They wffl 
still sell products unsuitable 
for most people. . 

Are there ever good l e ae o ns 
to link investment with insur- 
ance? SBdth is hard put to find 
them. He suggests that. In 
some cases, it can be used in 
inheritance tax planning, while 
the smoo t hing effect of with- 
profits palfcJas might appeal to 
investors who, otherwise, 
would not be ride to sleep at 
night 

“Favourable tax treatment 
within the ftmd may make sin- 
gle premium bonds tax-effi- 
rieht fix those who pay higher- 


Your CGT allowances 


The table shows capital gains 
tax indexation allowances for 
assets sold in May. Multiply 
the original cost of toe asset 
by the figure for the month in 
which yon bought ft 

Subtract the result from the 
proceeds of your sale; the bal- 
ance will be your taxable gain 
or loss. 

Suppose you bought shares 
for £6,000 in September 1985 
and sold them in May 1994 tar 
£14,000. Multiplying the origi- 
nal cost by the September 1985 


figure of L516 gives a total of 
£9,096. Subtracting that from 
£14,000 gives a capital gain of 
£4^04, which is within the 
CGT allowance of £5£00. 

If selling shares bought 
before April 6 1982, you 
should use the March 1982 fig- 
ure. The BPI hi May was 144.7. 

The Budget decision that 
indexation cannot be used to 
create or increase losses for 
shares sold alter November 29 
1993 has been modified for 
£10,000 of transitional relief. 


COT INDEXATION ALLOWANCES: May 1994 

i 1968 1983 1984 1985 1988 1987 1988 


February 

Mach 

Aprfl 

May 

June 

July 

August 

September 

October 

November 

December 


1992 1993 1994 


January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 


EXCO 


Exco is one of the leading international wholesale money and 
fixed income securities brokers, operating in 13 financial centres 
worldwide. Exco provides customers with an around- the- clock 
service in all three major financial time nones and in each 
of the world’s major currencies. 



Exco pic 

Placing and Public Offer 

Share Registration & Information Line 

To reserve a prospectus and application form 
or for further information, 
please call the following freephone number 

0800 400 501 


Where discipline rules and mavericks are out 


■ TUN 


Henderson concedes that 
this is a tough requirement. 
“Liquidation crystallise* capi- 
tal gains for taxpayers, and 
than is no way round that 
But we would urge cheats to 
do it, for It will su ab l e us to 
hold the things in toe portfolio 
that we tike. The client has to 
dsdde whether it is worth tak- 
ing the initial hit for toe bene- 
fits that Schroders can bring.” 


rate tax and capital gains,'' 
Smith adds. "But such people 
usually have substantial 
assets, are am* fikely to want 
a conventional portfolio, and 
can make use of other tax shel- 
ters.” 

Two products are high- 
lighted as possible bun by 
James Higgins, of adviser 
Chamberlain de Bros. “A few 
co mpa nies offer Insurance 
Good shells into which inves- 
tora can put their own portfolio 
«f investments,” he says. “The 
Internal taxation of the bonds 
can be favourable, but the 
charges levied by the compa- 
nies make them suitable only 
for people with very substan- 
tial portfolios.” 

For the same reason. Higgins 
says there could be a case for 
substantial Investors to pay 
into a regular -premium maxi- 
mum investment plan, particu- 
larly as a precaution against 
future increases in personal 
taxation. “But, for most people 
- including most higher-rate 
taxpayers - insurance bonds 
are a bad idea. They should 
look at Peps, unit trusts, 
investment trusts and National 
Savings instead,” Ifiggiiis adds. 


Saves: Inten d Revenue 








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FINANCIAL TIMES WEEKEND JUNE 25/JUNE 26 1994 


FINANCE AND THE FAMILY 

Tax officer’s misconduct 


The combined total of my 
retirement and occupational 
pensions are below the 
amount necessary to absorb 
my personal allowance. 1 am, 
therefore, entitled to a refund 
of tax on my investment 
income. 

Dne to an admitted over- 
sight in the local tax office, I 
did not receive a refund for 
1992/93 until January this 
year. In the Revenue’s letter of 
apology, it was written: “I 
have arranged for a tax return 
to be issued to yon shortly 
after Easter this year. 

“When completed, yon 
should forward your dividend 
vouchers with the return so 
that any refund dne to yon for 
the current year can be settled 
quickly and avoid the prob- 
lems that have arisen to date." 

My return was duly received 
just after Easter and submit- 
ted - together with a claim for 
repayment of tax, my dividend 
counterfoils and March pay 
slip - on April 11. 

Bnt I was advised by the 
county council, my previous 
employer, that it would not be 
issuing P60 forms until mid- 
May, although l am not aware 
of any information on the P60 
which was not on the March 
pay slip. 

I am now told by the Reve- 
nue that tt is their practice to 
accept form P60 and that no 
repayment of tax can be made 
to me until the form is 
received. 

Is there any statutory 
authority by which the Reve- 


nue is entitled to withhold 
repayment of tax, or is it sim- 
ply an arbitrary decision? 

■ No. the tax officer who 
refused to process your claim 
in April acted unlawfully and 
will doubtless be severely rep- 
rimanded by the district 
inspector. 

Write a formal tetter of com- 
plaint to the district inspector 
(whose mwb qhftnid be printed 
on the letterhead of the tax 
office), marking both your let- 
ter and the envelope “For the 
attention of the district inspec- 
tor.” 

As you have been the victim 
of maladministration for two 
consecutive years, the inspec- 
tor undoubtedly will add at 
least £100 to your delayed 
1993-94 refund by way of token 
compensation for the persis- 
tent misconduct of his staff. 

At the same time, you could 
ask the inspector for a copy of 
the free leaflet Qt 120 (You and 
the Inland RevenueX al so 
ask him to arrange for you to 
receive refunds by instalments 
during 1994-96 and future years 
so that you do not have to wait 
until after the end of each tax 
year before you get any money 
back. 

What’s in 
a name? 

I am the sole director and 
majority shareholder of United 
Chemicals Ltd, which is now 
dormant There are no debts 
except to myself (director’s 



t*> hg* can 6a amyri try om 

Hand* Ones far tm jmm gfcan It tern 
MUma M anoUMss W tie ant no tf ty past 


loan account). The company 
has a tax loss of £12,000. Does 
the company have a sale value 
In respect of the tax loss and 
the name? 

■ Since the disappearance of 
the Business Names Registry, 
Companies House in Cardiff 
(tel: 0222-380 801) issues a free 
booklet giving details of the 
procedure for registering com- 
pany names. 

There could well be a value 
in the name of United Chemi- 
cals Ltd but the market place 
will determine that (Answer by 
Murray Johnstone Personal 
Asset Management X 

Keeping it in 
the family 

To reduce the plethora of 
paperwork created by privati- 
sation, t wish to rationalise 
my family’s portfolios. 

Specifically, I wish to 
arrange a variety of transfers 
to consolidate holdings within 
my family. 


Where do I find information 
regarding any implications for 
Income and, more specifically, 
capital gains tax? Inland Reve- 
nue literature seems unforth- 
coming. 

■ The Revenue does produce a 
booklet concerning lifetime 
gifts which deals with the 
Inheritance tax iwiptinaUnn of 
such transfers, and it also pro- 
duces a booklet (CGT 14) which 
touches on CGT matters aris- 
ing from gifts. 

The latest edition, of the 
Allied Dunhar Tax Guide con- 
tains several references to the 
income and CGT implications 
of gifting, particularly to chil- 
dren. 

Choose your 
own broker 

My shares are held by nomi- 
nees (Barclays hare) and, in , 
view of the recent reinstate- : 
ment of indexation on capital 
losses, I wish to achieve some 
major bed and breakfast deals. 
This can be done at a lower 
cost through one of the bro- 
kers listed in a recent (March 
12) Weekend FT article. 

Is this permissible and valid 
(share certificates are not 
required) or must 1 use the 
more expensive nominee bro- 
kers? 

■ As it is not necessary to 
present the share certificates 
on bed and breakfast deals, in 
our opinion you can use any 
broker you wish. (Answer by 
Murray Johnstone). 


Permanent interest-bearing shares 


Yields on permanent 
interest-bearing shares (Pibs) 
have risen since we last pub- 
lished the table a month ago, 
unites Bethan Hutton. 

Pibs are issued by building 
societies to raise capital. They 
pay a fixed income Indefinitely 
bnt are not redeemable, so 
investors can get back their 
money only by selltng them on 
the open market 

Rising Pibs yields are, gen- 
erally, linked to the gilts mar- 
ket but variations in the price 
differentials between different 
Pibs are due more to building 
society factors. 

The market Is stOl reacting 
to the proposed takeover of 
the Cheltenham and 
Gloucester building society by 
Lloyds bank. Elaine Milner, a 
director at Hoare Govett, says 
the main impetus behind mar- 
ket movements recently has 
been speculation over which 
building society could be the 
next target for take-over. 

But, she adds, investors’ 
principal motivation is not the 
cash incentives sometimes 


PERMANENT INTEREST BEARING SHARES 


Coupon Mntanum Issue date Issue price 
(gross %) {£) (penra) 

Birmingham Midshires 9.38 1,000 16/12/93 100.17 87 75 

Bradford & Bingiey 13.00 10,000 30/9/91 10020 11424 

Bradford & Blngtey 11.63 10,000 29/6/92 100.13 125.75 

Bristol & West 13.38 1,000 11/12/91 101.79 125.00 

Bristol & West 13-38 1,000 31/10/91 100.34 125.00 

Britannia (1st) 13.00 1,000 13/1/92 100.42 123^0 

Britannia (2nd) 1&00 1,000 8/10/92 107.13 123£0 

Cheltenham & Gfoucs 11.75 50,000 21/10/92 10096 114.75 

Coventry" 12.13 1,000 28/5/92 100.75 114.75 

Fust National 11.75 10,000 4/5/93 10095 101.00 

Hafitax 12.00 50.000 23/1/92 10098 8895 

Halifax 8.75 50,000 7/9/93 100.62 118.75 

Leeds Permanen t 13.63 50,000 3/6/91 100.00 131.00 

Leads & Hofoeck 13.38 1,000 31/3/92 10093 12490 

Newcastle 12.63 1,000 8/3/92 .100.45 100.125 . 

Newcastle 10.75 1,000 15/6/83 10092 116.00 

North of England 12.63 1,000 22/6/92 100.14 118-50 

Skfpton 12-88 1,000 27/2/92 10048 110.00 

Sburtw Horn GowCt ’Purchm prtca a* of 23 Juno: tuduaca accrued Hnt TMMm stamp duty payable on Coventry Pfba enfy 


Price* 

(pence) 


Yield* 
(grass, %) 


offered during a take-over, prompted by the better credit 
such as the £500 promised ini- ratings of Pibs issued by 


tially to those at C&G holding 
Pibs in the Lloyds take- 
over. 

Instead, investors are 


larger institutions. 

If a small society is taken 
over by a large one, it becomes 
more credit-worthy and the 


HIGHEST RATES FOR YOUR MONEY 


INSTANT ACCESS A/cs 

Birmingham MUshreS BS 
Bntrmnb BS 
Leeds & Hotoeck 

Nottingha m BS 

NOTICE A/ca and BOMBS 

City & MotnapoKan 8S 
National Counties BS 

Chelse a BS 

MONTHLY INTEREST 

Britannia BS 
BnsioJ & West BS 
Scaitsorough BS 

Q ttteea BS 

TESSAa (Tax Fran) 

Confederation Bank 
Hmkley 5. Rugby BS 
National Counties BS 
Mdlon Mowtxay BS 

HlOH INTEREST CHEQUE A/ca lCao™»T 

Caledonian Bank 
UDT 

Chelsea BS 

OffSHOWC ACCOUNTS 

Woolwich Guernsey Ud 
Confederation Bank (Jisyl 
Derbyshire flOM) Ltd 

Corfttfcration Bonk (Jnsvl 

GUARANTEED income BOMPS piwt) _ __ 

General Portfolio 
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JTw wjl SA VINOS A/Cs a BONOS (Gross! 


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0538 391741 
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Investment A/C 
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4ist Issue 
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Chtdrans Bond F 


1 Month 
3 Month 
5 Year 
12 Month 
5 Year 


RMmim Rais tat 

deposit % paid 


E500 5-2594 Yty 

£2,000 a 00* Yly 

210800 625% Yly 

£25,000 660% Yly 


£500 600% Yly 

£10800 680% Yly 

£50800 7.15% Yly 

£10800 980%F Yly 


£2800 5.75% My 

£25800 622% My 

£25.000 6l75%B Mty 

El WKXJ S.65%F My 


£8.900 60094F Yly 

EWMOA 785% Yly 

E3800A 7.25% Yly 

£1 780% Yly 


£1 4.75% 

£1800 475% 

£2800 6.00% 
£25800 625% 


£500 5.75% 

£25.000 680% 

£50800 7.05% 

£10,000 8L25%F 


£50800 480%F 

£20800 680KF 
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£50800 7.10%F 

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£20 5-2S9&G 
£2800 65094H 

£100 78594F 

£1800 600%H 
£500 780%F 


£100 64096F 

£100 aoo%F 
+W!n 
£25 785%F 


„ and BUkJIng Societies only- AD rates (except those under heading Guaranteed Income 

This taWe n vjj f Rate (AD other rates are variable) OM = Interest paid on matutty, N= Net fate. P= 

Bonds) on? shown also required. B» 7 day loss of Interest on at withdrawals. G= 5.75 per cent on 

Bv posi cr*iy. A - rr»” C25800 and above. H= 6.75 per cent on £25.000 and above. j= 6.40 per cent on 
C!nW -uui -ibove: t. P*r ^oneyfACTS. The Monthly Gukto to Investment and Mortgage Rates, Laundry Lotus, 
«' * 0.000 .md above-SWU upra DBD. Readers can obtain an Introductory copy by phoning 0692 500677. 

Norrn W.iMwmi. Nortolh. — — - - 


VVho said your SBpB jpj|ppHB 

business can't ^ 
have free banking .. 

and earn 4.00% — ■ " " 

hour Bne 071 -U260S79 


You can have 60 free 
transactions per month, 
and earn a high interest 
rate on a minimum 
deposit of £2001. 

ALL! g T^R U S T 
r«wn Wfe: as. Hon* KS. Luka iC« Ml 


price of its Pibs win increase. 
This has increased demand for 
the Pibs issued by the smallest 
societies such as the Skipton, 
Newcastle, Cheshire and Leeds 
Permanent 


Tough 
line on 
Tessas 


When tax-exempt special 
savings accounts (Tessas) were 
launched in January 1991, they 
were intended to be straight- 
forward accounts which could 
be transferred from one build- 
ing society or bank to another. 

Tessas are now in their 
fourth year and the situation Is 
changing. While rates gener- 
ally have fallen in line with 
base rates, those of the societ- 
ies have held up better than 
banks. Rates from many banks 
are now down to between 4 
and 5 per cent while those 
offered by societies are 
between 6 and 7 per cent 

Maturity bonuses, which 
were introduced to encourage 
investors to stay with the same 
institution, have not been 
repeated in subsequent Tessa 
issues. And many of the top- 
paying accounts will not 
accept transfers of Tessas due 
to administration costs and a 
desire to keep the Tessas for 
their full five-year term. 

Higher-paying Tessas also 
tend to require larger opening 
balances. They demand the 
maximum permitted invest- 
ment each year and, some- 
times, a feeder account 

Under this system, the inves- 
tor most not only deposit an 
initial £3,000 into the Tessa in . 
the first year but must also put | 
a further sum into the feeder 
account from which transfers 
are made into the Tessa each 
year. This is fine as long as the 
feeder account pays good rates 
to compensate for the loss of 
access to funds. 

Confederation Bank's Tessa, 
which is fixed at 8 per cent for 
the term, also pays 8 per cent 
fixed on the feeder account. 
But the Market Harbo rough 
society requires £9,000 to be 
deposited up front; and while it 
pays a variable rate of 7.6 per 
cent on its Tessa, it offers only 
655 per cent (variable) on its 
feeder. Even this Is tiered, and 
drops to only 1J> per cent when 
the balance fall below £2,400. 

Christine Bayllss 
Moneyfacts 


WEEKEND I-T VII 


Invest in 
the Rising Stars 
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Henderson Tonche 
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‘Henderson Touche Remnant* 
re pre sen is products and services 
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investor may not get baek the 
amount originally Invested. Taxes 
relating to PEP* may change if the 
law changes and the value of tax 
relief will depend upon the ditira- 
stances of tne Investor. Scheme 
particulars and the latest Manager's 
report are available from the 
Manager. 



HTR European Special Situations Fund 
has a very impressive long term 
performance record - well within the tap 
10% of all European unit trusts since its 
launch in February 1987. (Source: 
Mltrojuf, offer to bid with net income 
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HP 

H H N I) t R S O N 
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The Investment \lana”vrs 


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Further 

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For full details of the 
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★ Speak to your usual 
financial adviser 

■k Return the coupon, or 

★ Call us free of charge 
on the number below. 


1934 


1994 


To: HTR Investor Services Department. FREEPOST, PO Box 216. Aylesbuiy. Bucks HP20 1 DD. 
Please send me details of the HTR European Special Siiuatlora PEP. 


My usual financial adviser is: • - 

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FINANCIAL TIMES WEEKEND JUNE 2S/JUNEj»_lga4 



VIII WEEKEND FT 


MINDING YOUR OWN BUSINESS 


Minding Your Own Business 

Scrapyard 
with a taste 
for chips 


T here are alarms on all 
the doors and windows 
of Bob Howes’ 40ft high 
warehouse in the Aston 
district of Birmingham. 
But flat did not stop thieves from 
breaking in through the roof of the 
8,500 sq ft building and stealing 
£20.000 of precious metals. 

“As the metals were uninsured 
and most had come from scrap 
pri n ted- cir c ui t boards I suppose you 
could say the chips are down," said 
Howes, whose “ computer grave- 
yard” is one of the biggest recycling 
operations of its kind in the UK 
At any time there are up to 150 
scrap minisystems and small main- 
frame computers, plus a handftil of 
personal computers, awaiting the 
attention of Howes and his three 
staff Howes buys the scrapped com- 
puters and recycles the precious 
metals they contain, as well as 
some of the re-usable parts. 

’Ton could call it a low-tech busi- 
ness. We simply use reversible 
drills, chisels and the good old ham- 
mer,” said Howes, 47. 

The company, Elkarbar. may be 
low-tech but it is a high-volume 
operation, with a turnover of 
£300,000. Last year, Howes and his 
wife, Pauline, who is co-director, 
turned in a profit of just under 
£40,000 - one of the better years for 
a business that can fluctuate wildly. 

“Because it is a rather 
upand-down business run on tight 
margins the bad patches , when they 
come, can be very ted,” Howes said. 
“A big robbery was the last thing 
we wanted at a time like this. The 
last six months have been particu- 
larly poor. After the robbery in May 
I shall be surprised if we make a 
profit at all this year." 

He felt that, in a recession, it was 
his experience that scrap metal 
companies were often among the 
last to be hit. “When companies are 
closing down all around you there 
is money to be math* by gning round 
metal auctions,” he said. “But now 
there are not so many companies 


around — and those that are in 
existence are carrying less stock 
and malting sure they have less sur- 
plus to get rid at 

“Early on in the presort reces- 
sion, when I realised that the flow 
of precious metal scrap was dimin- 
ishing, i started going to auctions to 
buy in more common metals for 
recycling. This helped cushion the 

immediate effects of the recession.” 
“But;” he adds, “now there are 
fewer auctions." 

Howes' warehouse rings with the 
sound of a minicomputer cahhwt 
being knocked away from its con- 
tents. While the cabinet is treated 
as n ormal scrap the electronic com- 
ponents are removed carefully. 
Items such as drives and transform- 
ers are put aside for the specialist 
disposal merchants who visit to 
view and buy. Computer backplates, 
with their gold-plated areas, and 
chips, often coated in precious met- 
als, are kept separately. 

“This bit is what I call the recov- 
ery service,” said Howes. “Some of 
these materials are worth £70-£90 a 
k3a It takes a lot of experience to 



Tima for a byte Bob Kowes has started , 


mater ial is sent off-site to be granu- 
lated.” This means it is chopped 
tntn small pieces and heated to form 
a low- grade bullion bar. ^his might 
then be reprocessed, or the gold 
removed and refined. 

As well as recycling computers 
Elkarbor dismantles telephone 


Clive Fewins visits a recycling business 
with a difference in Birmingham 


estimate the gold content of scrap, 
but we usually have a good idea. 

“Quite often we have an assay 
done on a sample of the material so 
the person we are buying from 
knows the precise value of file gold 
in the scrap computer. In this bus- 
iness you soon learn that all that 
glisters is not gold. 

“In most mini-systems and main- 
frame machines there is also usu- 
ally silver, paladium, and trace met- 
als such as nickel, lead, tin, and 
copper from the solder. They are all 
worth recycling. Tantalum can also 
be found in thp capacitors. 

“Generally we process surface- 
plated gold, and the rest of the 


exchanges, usually for companies 
updating equipment 

Elkarbor is often contacted by a 
local broker or scrap metal mer- 
chant - unless it hears about a job 
over the grapevine, “which fre- 
quently happens", says Howes. 

“Precious metal recycling is a 
complicated field, in which you 
need a lot of experience and a good 
knowledge of the trade. I often fed I 
am not really geared to this busi- 
ness as I started life doing some- 
thing else - as a metallurgist work- 
ing in steel rollmaking factories 
here and in Sheffield. 

“Sometimes I feel I am too honest 
and not suited to it simply because I 


am happy just m»io»g a living, and 
not going all-cat for a big profit.” 

Howes described some of the 
problems be encountered in 1966: “I 
was four years into the business, 
having started op from home in 
1982. In sane instances I was put- 
ting up to £10,000 up front, only to 
find the m a ter ia l I bought-in was 
worth less than I had anticipated. In 
three instances the job was recover- 
ing copper anil other pre ci o us met- 
als from cable. As the value of the 
metals was lower than had been 
indicated we rolled the jobs over, in 
effect granting credit to three com- 
panies to the value of £7,000 to 
£10,000 each. AD three companies 
went bump within a few months of 
each othe r." 

Howes survived. And he teamed a 
few lessons. Nowadays be puts up 
only 70 per cent of what customers 
expect. 

Howes says: "However careful 
you are this is a business that sur- 
vives on trust Customers trust me 
to take away their materials and 
weigh them honestly when it comes 
to calculating the value of the met- 
als to be recovered. I respect this.” 

To ensure that file new trading 
year is better than the current one. 


Howes has two schemes in mind. 
The first is putting far greater 
emphasis on chip recovery and the 
second is expanding Into Europe. 

“We can now separate chips by 
their number, their manufacturer 
and their speed, and we can do this 
fast enough to make it profitable,” 
says Howes. 

“We have built up a small net- 
work of customers who will ring us 
up for anything from 50 to several 
thousand of a particular kind of 
chip. We charge anything from 20p 
upwards for a chip and the more we 
can segregate and identify particu- 
lar makes and types of chip the 
better price we can get for them. 
This is a growth area at present, so 
we might expand this process our- 
selves. or we might merge with peo- 
ple 1 know in the trade. It depends.” 

Howes has already organised bro- 
kers to bring scrap machines to him 
from all over the UK and Elkarbor 
has carried out three successful 
jobs in Europe. “We have made 
money out of these jobs and every- 
body seems happy” he said. 

■ Elkarbor Ltd. Ashford Street. 
Newtown, Birmingham. B64RE. TeL 
(El-359 1908 


As They Say in Europe/ James Morgan 

Passion that 
eludes the US 


L ast weekend La Qomtta 
Sportwa said: “E won si 
pod neppat bapnamtaOa 
afurtuna" (one cannot even 
blame misfortune). This observation 
on the defeat at the hands, or feat, 
of Ireland In the World Cup. could 
have been taken from a barely- 
known opera by Puccini which I 
have unearthed - B FanduBo tU 
Ouest (The Boy of the Golden West). 

The hero, Qdcherino, stags this 
sad aria. E non si pab. haring been 
forced to emigrate and take up 
American football after scoring a 
last-minute own goal hi a European 
cup match against Lammermoor 
United. He was also rejected by his 
beloved Cakta. She stags L’lta&a 
sprqfbnda ml grig ionr (Italy plunged 
in gloom - quoted on page 3 of 
Sponnxz) whan he scons an Ma- 
lone touchdown in tbe Superbowl a 
year later. 

But not all Italy was plunged In 
gloom at the defeat. For the oppo- 
nents of Silvio Berlusconi, tbe coon- 
try’s new leader, there was covert 
rejoicing. Berlusconi owns AC 
Milan and their players c on sti t u t e 
the largest element in the Italian 
team. La Repubbtim headlined the 
surprise defeat “Italy, In tbe shape 
of Milan, beaten." 

So. Ireland, in the shape of 
England, won: nine or the team 
were born in places such as Ealing, 
a London suburb. 

There was one other country 
which enjoyed a startling victory 
last weekend - Romania. That 
again was an odd case of foreigners, 
at least a sort of foreigner, playing a 
crucial role. In the match against 
Colombia, which brought tears of 
admiration there was a wondrous 
goal by Gheorghe Hag L Tbe com- 
mentators spent much of the rest of 
the game arguing as to whether he 
could have meant it. (He did 
because he had done it before.) 

Hagi turns out to be an Aromen- 
ian. a small group Chun Macedonia 
which speaks an odd form of Roma- 
nian. He is a man of few words to 
that language, just saying: “Keep 
your fingers erased,” to the mass 
circulation Eoenfmentul ZBex In its 
attempt to extract an Interview. 

Romania’s other goals ware 
scored by Florin Raductoiu, who 
was positively prolix by compari- 
son. observing that the 3-1 victory 
was compensation for having kept 


1 


Ms compatriots up all night. The 
Bucharest flrata began at around 
four in the morning local time, the 
first occasion for national rejoicing 
stoee Mr and Mrs Okhmoku were 
shot on Christmas Day. 1908. 

JS vmb mat kd carried an even awe 
unusual World Cup story. In the 
middle of the small knot of Roma- 
nian supporters at the Pasadena 
Rose Bowl was an •motion! Dutch 
woman waving their national flag 
Aaked what she was delag there, 
rite raphe# ”1 am Astrid. wife of 
Radudoiu." which sounds suspt- 
cloudy t&e aomethtac steten foam « 
Dutch-Romanian phrase book. The 
star striker had, it emerged, 
secretly married her three days 

a -n. — ^ 

There has been Burope-wtoe spec- 
ulation as to whether the host 
nation will become interested in 
what tbe rest of tbe world csBs foot- 
ball. The consensus is (hat it will 
not - and that is no had thing. 

No erne liked the opening cere- 
mony. La Stempa was the most 
favourable, saying ft tots “staple, 
fast and cheap". Another Italian 
paper, Tuttaspart, mM the only 
good thing was that ft was short, 
white Sport in Spain arid the con- 
test opened with a “grew, grim and 
short c el e brati on". 

A French paper. La Neutxlk 
MpubHqu* da Centn ttitiBC, pon- 
dered how a country that had 
exported its culture to the rest of 
the world, and was largely made up 
of European immigrants, had 
remained doeed to football "Amer- 
ica fovea violent sports and high 
score* ft hatae drawn auras. R pre 
ren oy nr me oc yaim n iwpw 
Stan towards the oppoafeggoel to ■ 
subtle co mb i n a t ion mads op of fen- 
tasy and tapravtaatiaor. . . Faria®* 
passions are net as unhand to <me 
would Hke to think.* . 

Soccer could become a mass sport 
In the IS if tbe gaas ahMHtnhed 
the oflWtfe rote, doubted tin ates of 
the sml stopped warylw Afitote* 
for bogus reasons and d 

teams made up of g sNp> te • tewtefri - 
ties, ft would not be •oooirfeft .ft 
would appeal to TV networks and 
advertisers. For they wlft/jpver 
acoept tbs game of football toft is 
known to the rest of the wortt 
■:ik ... 

itoconomics ccrrt- 
BBC World Stroke. 




Mt 



MINDING YOUR OWN BUSINESS 


READERS ARE RECOMMENDED TO SEEK APPROPRIATE PROFESSIONAL ADVICE BEFORE ENTERING INTO COMMITMENTS 


CASH COW 

SEEKS INVESTMENT OITOKTUNTTY 

A privately owned food company, which generates a 
significant amount of cash p.a., operates in a stagnant 
market and is having difficulty in identifying value- 
generating growth opportunities. We would therefore be 
pleased to receive offers for majority stakes in growth 
companies with turnover of not less than £4/£5 million up 
to £30 million, seeking a cash generat in g partner. 

Interest may come from medium sized companies seeking a 
joint venture or large companies wishing to dispose of non- 
core assets. 

Write to Box B2951, Financial Times, One Southwark 
Bridge, London SE1 9HL. 


BUSINESSES FOR SALE 


OFFICE EQUIPMENT 


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TENBY, PEMBROKESHIRE 

An unusual opportunity to acquire a recently 
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delightful stone built Farmhouse and 
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retirement area within 2 miles of the coast. 
Ready for immediate opening. 

For more in fo r mation contact .- 

Osborne 8c Co 


JM 


15/16 Soudham Road Banbury Oxon 0X1$ 7ED 
Tel: (02 95) 277157 Fax: (0295) 268651 


OFFICE FURNITURE 


We have - direct from the manufacturer - new high quality 
executive and system ranges - conference and receptions. 
Large choice of veneecs. melamine and/or laminate finishes 


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London Showroom for viewing: 

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Full camcad and planning services. 


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LEGAL NOTICES 


BUSINESS OPPORTUNITIES IN CHINA 
If you are interested in working with 
Chin a in connection with your business please contact: 
CHINESE COMMERCE AGENCY - in association with 

ccoic & ccptt 

Fax: 071 724 2190 - Teb071 224 8099 


"Sports Equipment Manufacturer 
and Distributor 

A Superb opportunity exists to acquire a specialist spoils equipment 
□unofacturex/distributor. 

Based in the north of England tbe company supplies a rapidly 
expa n ding European leisure market and is recognised in tbe UK as a 
leader in its field. A strong asset base has enabled tbe owncr/operatore 
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Principals or retained agents only should <qqdy in the first instance to 

m - - —9HlJ) 


PRIVATE AND 
CORPORATE 
INVESTORS 

CMR's very experienced 
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associated investors to help fast 
growing smaller UK companies 
(Sates range £1M to £3QM). We 
need to expand our network of 
potential investors to cope with 
our greatly Increased flow of 
good quafty propositions. 

For more information on our 


phone 071 -224*2388 or write to 

CUR, VGA Suite, 

7 Harley House, 
Upper Harley street, 
London NWt 4PR. 


WANTED 

Vintage Port 
Claret 

■fete 0978 761 060 Dqr 
094 866 2854 Ew 
Fxc 0978 762337 


Timber/Kitchen 

Distributor 

WcD established Scottish 
business. Principal customers 
uahouai/kxsd housebuilders. 
T/O >£3.QM; PBT JD420K. 
Si gnifi c ant growth potential Sale 

part of retirement planning 

Wrltt [o Box B2835, Rnantial Tones, 
One Southwark Bridge, 

London SE 1 9HL 


AIRCRAFT 
FOR SALE 


BUSINESS SERVICES 


Angel Invited 

in beonue iavelwed in a privatdv 
profitable Socufa Midlands 
high technology group (T-TO 

tea a number at excellent 

°PP®«tUM*Wi luuBung bin neuda cash 

•ed qnyba expertise. Principals onty. 


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ss your address in tha USA 
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AB Mmkemeat baoJciBgi « socqiM 

cteacsrfwfrk±wj*sa£Jabtebywi*fa^B 
H* Ad KlriaiuuU K n Lnm 
Tht Fmocal Tax*, Ctae Sacbwaii Bridge. 
IradMSEl«HL 

Tit 071 8733000 Ful- 071 873 3064 


m ag ga ram maai 

CttWCfJH WVIMOU 
BETWEEN > 

IN TBE MATTEK Or HEMINGWAY 
COMMERCIAL LOOTED 

IN THE MATTES OF 
THE COMPANIES ACT IMS 

wane s 

NOTICE IS HEREBY GIVEN ta ■ Persian 
n>nik I7tt dayaUfey 1494 pamed to 
Her Ujjcsn High Cent at Jtockx tor tbe 
t rafcrra i i oB at At Tpdo ct i np ol Ibe aprtil 
of Ac ibenMned fompen y tarn £3.4X3.106 
ȣHXL 

AND NOTICE tS FURTHER GIVEN tbn tbe 
Mid Petiiioa to tiecctcd to bo bod before Mr 
hjtotamdacbpIConrfJMis, 
Stand. Laden WC2A 2LL an Wadea*?. 

July 1994. 

ANY CREDrrOR or liurcbokto of tbe Mid 
C o oi|miy i WHng lo eppnee We maUagof w 
ante feflbe a o iflnu i m of tba aid mj adfraicf 
Share capital Amid appear at tbe tiac of [be 
beaks jw*» CM for tel paqnae. 
A copy o* Ibe aid Ibbeien win be faniilad to 
«oj ml penes icqniiaf ibc use bp tbe 
mde nnrgtk med aafiebaa on pafacat of Ibe 
repteed dmgr fer tbe true. 

Dated dds 2Slb day of he 1994 

ASHURST MORRIS OUST 

BroadwaftHoasc 
5 Agpatt Street 
ISAdba EC2A 2HA 
Reference SAW 
SoUdwrelottbeadd CoapaT 


tajaafamsi 

BUTWEES’;. 

IN THE MATTER OF 
HEMINGWAY PSOFEKnESPLC 
-nad- 

C4 THE MATTER OF 
THE COMPANIES ACT I9SS 

NOTICE IS HEREBY GIVEN , pcn&a 
S" 2 nfbfcy J0M pranced to 

Her _Ma)ay « H^bCcren ,[ fa, 

omiirenfl oa nf tbe wdnaka rt ftt ibW Captol 
SL.« e «. , £? wc-al “ cd «n»" 

07J57.421.W in EEUSOM} 50 
AND NOTICE ES FURTHER GIVEN that ibe 
md PnM oa i, tCrected M be beard before M, 
SST Ra T ,o ;“ ft ' Conm Bf faate. 

Strand, Londta WC2A aloe. Wcdnesfav.CW 
Mr 1794. 

ANY CREDITOR or ihirebaldcr of ibe iiM 
Cettpaay deiriss in oppose the BsaBco of jo 

eWgfarOC ftad i rinKn otOe.aidtedncaonnr 
toeapual moobf apm el We tore nf Ac 
borins pereoo Of by Cmerel tor that tapoac. 

A copy id tbe said Fobka «n be fanobedtn 
■ B 7 mb perm leqoirrng ibe tame by Ibe 
Mdctnenuooed aotlcitqa on pnyneM of ibc 
TtposOta gmxje Cor Ac sine. 


Eted ibia 23ib day of Jpoc I W 

ASHURST MORRIS CRISP 
Breadwalk Honae 
SAnddSncxa 
LoSanECZA 3tA 

ReftrenceSAW 
SnKriire sfcribe aid Cnapamr 


NObM0307 oTMR4 

BaMmaariKMaa 

CBWCTmiHYISMh 

IN THS MATTER OP 
NBK INVESTMENT 
MANAGEMENT LOOTED 

IN THE MATTER OF 
THE COMPANIES ACT IStS 

NOTICE IS HEREBY GIVEN the a taboo 
waa an Ibc 25 lb May 1794 p r e ne a l e d K> Her 
Majesiy-s tfigb Coatl of Jnstice, for (be 
oe ni l rn »k»o<fte reda c tio aiof<btcaplalof the 
above-earned company from £54100.000 lo 
£1.9SQ£00> 

AND NOTICE IS hereby given (bai Ibc nid 
nsDIoa tidbcclcd to be bcaid before 
Mr Regbtrar Buckie) ai ibe Royal Coots of 
I eat ice. Strand. Loadoa WC 2LL on 
Wedacaday ibe ISO day of hd* 1994. 

Any Creditor oi Shareholder vt ibc said 
Cottpsay desirioR to opptnc ibc nuking o( m 
Order foe tbe aMfinnaliMi of be said red a o i cn 
of tapfnl sborid appear at be lime nf brnm in 

person or by Cteaxl furtka potpeoe. 

A tx^rj oi ibe aaU ftsilam win be farabbed to 
any person requiring Ibc same by the 
soderaentfoaed Solicitor* on payment nf ibc 
•egptoM cb^e far die same 

Dared Ac 21st day at June 1494. 

Slaogbter aad May 
35. BasogbaD Sim. 
hredoaECtY 5DS 

Ref: RJJI 

SdidMm for Ibc wd Cooifuay 

NO, BOH83 OY 1994 
EtTHKIlK^ ifWRTDV iiirot-v 

chanc ery nmafla 

BETWEEN;. 

IN THE MATTER OF 
HEMINGWAY IK)UHNGSUMI1E& 
AND 

IN THE MATTER OF 
THE COblTANlES ACT IW 
NOTICE 

NOTICE B HEREBY (ilVEN dm a PctoJos 
•as on Ibr 17* day rtf May ITO4 pre sem ed to 
Her Majesty' I lUpb Chart of jailre far Ibc 
con I Ira, ah on of ibe rrdoeiion ol tbe chare 
capital of ibc above-naned Company fruam 
fMOiiXBtoliroo 

AND PK7TK1? IS FURTHFS GIVEN *e 
sal Pediaw re dbMcJ re be fared bcfrec Mr 
RcRtaitar Raw ton .1 Ibc Royal Ctrerre of 
Justice, Strand, London WC2A ILL on 
Wrrfaodas.MhJaty |M4, 

ANY CREDITOR nr AwchoUrr rrf *c iaU 
CWRMT desiring to opiaree *c malb^ of an 
odcr Iw *c ccredoiattai .d Ibc reid mbMiM 
of te opbal nbonU apprur M ibc Urea nf be 
bearing in person or by Counanl Tor Aat 
PWPOtt. A copy of (be laid prhttoe «4I be 
SiraMod In me are* pren teqalrfaui ttre aaoe 
by *c imrirnm ai l irepl aaMdunta payreere of 
*e regaUcd ctnryc far ibc area. 

Dared toil £3* dm of Jure IW 

ASHURST MORRIS OUST 

IbnrelyraR liunre 

5 Appold Street 

LoodonCCLAaiA 

Refer cm; SAW 

Solidan far (ba laid Company. 


Tnl: (07S4> ZHOM M fOXSA) TUMI 
(Mbn) WO 


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BUSINESSES FOR SALE 


Appear in the 

Financial Times on Tuesdays, 
Fridays and Saturdays. 

For further information 
or to advertise 
in this section please contact 

Karl Loynton on 071 873 4780 or 
Lesley Sumner on 071 873 3308 


m r 










V' ' X 


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\ 




FINANCIAL TIMES I 

tuaoct , ntKim~y wctowna 1 


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I 



FINANCIAL TIMES WEEKEND JUNE 25/JUNE 26 1994 


WEEKEND FT IX 


FASHION 


D 


o yon not find p rop riet y 
awfully middle-aged? 
How often do yon hear 
the “woman of a certain 
age” asking: “Is this all right I 
don't look like mutton dressed as 
Iamb, do I?" 

Indisputably, there Is a middle 
period in one's life when to look 
too trendy or too drop-dead sexy 
invites derision - the singer Cher 
immediately comes to mfert. 

Bnt there is an absolutely certain 
age, by which I mean 70-plus, when 
a woman can wear any for-the-hell- 
of-it garments she likes and get 


To hell with dressing your age 


away with it It is the privilege of 
age, like being able to say exactly 
what yon think or be a “character” 
and, as long as she carries it off 
with conviction and aplomb, we all 
applaud madly. 

I was reminded of this liberation 
a few months ago when I attended 
a party thrown by publisher Naim 
AtfeiUah to celebrate die publica- 
tion of Pamela Cooper’s autobiogra- 


phy A CSoud of Forg ettin g. Pamela 
Cooper is 83 and as sassy and irrev- 
erent as yon will find. 

Miriam RothschllcTs mad 
head scarves, Diana Cooper's 
whoopsy-droopsy garden hate, nr 
Violet Bonham-Carter’s Fortuny 
Delphos dresses, her personal style 
has nothing to do with conformity. 

On this occasion, moat of ns 
standing in the drawing-room of 


her son. Lard Cowrie, were deco- 
rously upholstered In velvet, as 
stiffly posed as if still wearing coat 

hangers. 

Pamela Cooper was dressed in a 
pomegranate-coloured, viscose-knit 
tonic top and bell-bottom trousers, 
bought, her grandchild explained 
to me, that morning from a hip 
teenage chainstore for “really noth- 
ing!" 


It looked madly nouvean-Biba, 
teamed with Jesus sandals and a 
modernistic 1960s necklace which 
looked like a fitting from Star 
Trek's Starship Enterprise. 

This octogenarian was by ter the 
most flamboyant figure in the 
room. 

Even her demeanour spoke of the 
Roaring Twenties or Swinging Lon- 
don, for she adopted fi»* inimita- 


ble “backbones are out” pose. 

In her hey-day, in the 1920s, 
world weariness was madly fash- 
ionable and wonderful for shocking 
dowagers. 

These days Pamela Cooper has 
moved on. While the pose and the 
attire may speak of ennni, the wM 
is as keen and amused as any girl 
recently np In town from the 
shires. She is lapping up the world. 


There is nothing weary about her 
approach to life. And that is why, 
wearing that gear, behaving in that 
manner, she makes those of us in 
between long to be either 20 or 
70. 

It is the middle ground. In 
Major's middle England, populated 
with the endlessly middle-aged, in 
middle class propriet y that makes 
me feel dispirited. 

Show me a trucker or a toff In 
wildly unsuitable clothing and I 
will show you a good party. 


Jane Mulvagh 


Why baggy shorts are down and out 


John Morgan urges Englishmen to use more imagination when packing their holiday clothes 


I t is always easy to spot 
the Englishman on holi- 
day. He is the burnt 
one, whose clothes - an 

untantabsing mirtnro nf 

sagging swimwear and Hi-cho- 
sen separates - set him apart 
so dismally from most other 
nationalities. 

Many men who dress appro- 
priately for the office and 
attractively at weekends, often 
abandon any vestige of sarto- 
rial savotr faire at passport 
control. This is an unnecessary 
shame: a holiday wardrobe, 
like any other, requires only a 
little imaginative application 
and a modicum of self-knowl- 
edge. 

The first rule of holiday 
dressing (assuming a reason- 
ably sophisticated destination 
that offers the usual mix of 
beach life, sight-seeing and 
night life) is to remember that 
the same body you live with 
throughout the year comes on 
holiday too and. thus, clothes 


that do not suit your shape at 
home will look even worse 
abroad. 

This may seem obvious, but 1 
am constantly amazed by how 
many Bngiinhmpn dress like 
downs when on holiday. The 
right clothes wafcfl economic 
as well as practical sense, as 
they will integrate happily into 
your general summer ward- 
robe when you return home. 

The second principle is to go 
easy on colour. The English 
complexion may look peerless 
when celebrated by Lely or 
Gainsborough, but does not 
stand up well to the harsh 
glare of the southern sun. 

Unclothed, L like many of 
my compatriots, bear a stri- 
king, and seriously unappetis- 
ing, resemblance to saumon en 
t route before it goes in the 
oven. Leave bright colours to 
others and, instead, look at soft 
cream, stone, ecru and white, 
with a few earth tones - such 
as terracotta and indigo for the 


more adventurous. 

A restricted colour palette 
will also help with the third 
prerequisite of the holiday 
wardrobe - interchangeability. 
So will sticking to clothes in 
plain rather than patterned 
fabrics. No one wants to travel 
with masses of luggage, yet 
most people pack far more 
than they need. Everything 


although undeniably useful, is 
grisly to look at 
The jacket «h«nM be made of 
1 ttvph i which is the coolest a nd 
most breathable of cloths. 
Man-made fibres, no matter 
bow advanced, should be left 
at home. Some of the nicest 
jackets comes from Dries van 
Noten at Joseph. Made from 
white Hnan, they are unstruc- 


en s, matching the Dries van 
Notea jacket a pair of zoom? 
substantial cot to n chinos from 
The Gap, in khak i, stone and 
salt, or, more fashionably, a 
pair of draw string, pyjama- 
style pants from Voyage. These 
would look much more 
up-to-the-minute than jeans 
and are also more comfortable 
in hot climates. 


When it comes to shorts , length is crucial Too long 
and you will look like a superannuated boy scout 


described here is to 

work together in different com- 
binations, depending on 
weather rrnutiHttns and drees 

codes. 

So we came to the compo- 
nents. The first necessity is a 
good lightweight jacket It is 
both practical and versatile 
and its pockets mean you need 
not wear a money belt which. 


tured and cut fashionably long . 

Alternatively, plump for a 
more robust white cotton drill 
blazer bristling with antique 
brass buttons from Voyage, an 
pTr-pPwit shop in London’s Ful- 
ham Road sailing clo thes ideal 
for travelling. 

You also need to pack a am- 
ide of pairs of trousers. These 
could be the lightweight Un- 


When it comes to the vexed 
question of shorts, length is 
crucial. Too long and you will 
look like a superannuated boy 
scout; too short and you 
appear undressed. Opt for a 
beautifully-cut. mid-length pair 
in stone-coloured linen by Mar- 
garet HowelL They are flatter- 
ing and versatile. Passable 
cheapo: versions be found 



•* 

ON THE BEACH (above}: cotton singlet, £16, from a selection at Voyage, 
115 Fuftiam Road, London SW3. Cotton T-shirt, £949 by Haws from 
Sports Locfcar, 17 Bora! Street, London WC2 and 53 Fem br idge Roadl 
London W11. Kftoi, £2250, from The General Ttodfctg Company, 144 
Soane Street London SW1 and 10 Argyta Street, Ptdtaney Bridge, Bath. 
EspadrWes, £70 by Dries van Noton from Joseph, 77 Fulham Road, 
London SWA Swimming trunks, £2290 by Speedo from Sports Locker. 


OFF TO SEE THE SIGHTS (right): Bnen jacket, £386, by Mee van Noten 
from Joseph. Cotton singlet, £16 from a selection at Voyage. Unwi eWrt, 
£135 and inen shorts, £98, both by Margaret HoweB, 29 Beauchamp 
Place. London SW1 and 24 Brook Sheet, London Wf. T-shirt, QL99 by 
Hanes from Sports Locker. Rol-up panama, £99 by hetbert Johnson, 30 
New Bond Street, London W1. Desert boots, £105 by Fratoffl Rossetti. 
177 New Bond Street, London Wl. 


ILLUSTRATIONS: CHRISTOPHER BROWN 


€ 

CERRUTI 1881 


MENSWEAR COLLECTION 


SALE 

STARTS TODAY 


76 New Bond Street London Wl 

Tel: 071-493 2278 



at Thomas Burberry, Marks 
and Spencer and The Gap. 

Margaret Howell also scores 
well with her understated, 
relaxed shirts in cotton or 
linen. These are cut gener- 
ously, are cool to wear and can 
be teamed with trousers, 
shorts and worn as a cover-up 
on Hw» beach. Also iiw»i™fo a 

selection of classic polo shirts 
in Sea island cotton from John 
Smedley and plenty of white 
cotton T-shirts by the Ameri- 
can manufacturer. Hanes. 
Should yon need clothing for a 
black tie occasion, an exqui- 
sitely-made, knife-pleated even- 
ing shirt from Budd, in the coo- 
lest cotton voile, is the most 
elegant thing you can wear. 

A summer suit is also recom- 
mended. Ivory lineal is always 
the most glamorous choice. It 
ran be worn on any nraairiiyi 
when you have to dress up a 
little and its m m p cmentg can 
be worn separately with other 
items in your holiday ward- 
robe. Also, with the artrtitinTi of 
the Budd evening shirt, a 
corded silk black bow tie and a 
pair of patent pumps, it will 
convert into an acceptable 
tropical rtimiw jacket. 

Designer Paul Smith has a 
three-button, single-breasted 
version that manages, in true 
Smith fashion, to look both 
classic and contemporary. 
More conventional tastes could 
invest in his khaki cotton ver- 
sion or an even more tradi- 
tional modal in olive, buff or 
navy from Beckett, although 
neither of these could be trans- 
formed into M a c k tie. 

When it comes to beachwear, 
I am rather tired of seeing 
Englishmen lolloping about in 
baggy shorts. I feel that surfing 
jams look best on those for 
whom they were originally 
intended. Opt instead for a pair 
of well-designed classic swim- 
ming trunks. 

Speedo have good styles 
including a model made in a 
special sleek lightweight fabric 
developed for professional 
swimmers. Look out, too, for 
designs by the Los Angeles 
Sporting Club at branches of 
Sports Locker. Black or dark- 
est navy blue, remain the 
smartest colour choice. 
Remember, white is far exhibi- 
tionists only as it becomes 
transparent when wet. 

The beach look is completed 
with a cotton singlet available 



OUT 70 LUNCH: Linen Jackat, £29$ waistcoat, £110; and trousera, £120, 
ai by Paul Staflh, 40-44 Rami Street, London WG2 and 10 Byard Lane, 
Nott i n gha m. Linen shirt, £85 by Budd, 1-3A PfocadPty Arcade, London 
SW1. SBc He, £40 by TUndniH & Auer, 71-73 Jennyn Street, 

London Wl. 


in a s election of muted hues 
from Voyage. This year’s most 
trendy holiday garment is a 
Kikoi from Kenya, which 
works as a wrap, towel, mat 
and, for some men, tropical 
night wear. 

When choosing footwear, 
espadriQes are de rigueur. Both 
Ralph Lauren and Dries van 
Noten. have attractive designer 
versions, but you are probably 
best buying them on location. 

You should also include a 
couple of pairs of Superga Ori- 
ginal! plimsolls, in navy, white 
or ecru, a washable deck shoe 
by Dexter, a pair at the lightest 
canvas desert boots from Fra- 
telM Rossetti and a pair of for- 
mal light-brown lace-up shoes. 
I am particularly impressed 
with John Lobb Oxfords at 


Kurt Geiger, which are elegant 
and tight ff you want bo wear 
sandals, Paul Smith has a 
handsome classic design in 
brown or black leather. 

A cotton sweater is a must 
for cool evenings - and there is 
little to beat Marion Foale's 
classic, understated and beau- 
tifully-made knitwear. The 
look would be completed by a 
fold-up, wide-brimmed, panama 
from Herbert Johnson, a cou- 
ple of silk ties from Turnbull & 
Asser and sunglasses from the 
Paul Smith range. With these 
purchases you will have a holi- 
day wardrobe that, although 
p-laasjp- in inspiration, will be 
modem, practical and stylish. 
Bon voyage. 

■ John Morgan is associate edi- 
tor of GQ Magazine. 



SALE 

STARTS 27TH JUNE 


Examples of our reductions: 



Original 

Price 

NOW 

PURE WOOL SUITS 

£395 

£295 

PURE WOOL BLAZERS 

£295 

£195 

LEATHER SHOES 

£185 

£90 

TROUSERS 

£125 

£75 

BUSINESS SHIRTS 

£59 

£35 

SILK TIES 

£45 

£20 








dl Jfc _ 

JSSsL 

Gieves &HAWKES 

No.l SavOe Row, London 


London: No. 1 Savile Row Wl, 18 Lime Street EC3. 

Bath, Cheltenham, Chester, Edinburgh, Portsmouth, Winchester. 



The Gent Ionian's Sale - The Gentleman's Sale * The Gentleman's Sale 


i 














X WEEKEND FT 


ctstanCIAL TIMES WEEKEND JUNE 2 S/JUNK 26 1994 


HOW TO SPEND IT 


Garden furniture that grows on you 

Lucia van der Post on where to look for outdoor accessories that will keep you at the forefront of fashion 




Tha Court Seat by Gam Burvflfc elegant, under-stated and com f ortable with curves, angles and wide seat slats 


Fashions in furnishing the garden are fortunately not subject to 
quite the same hectic time-scales as fashions In frocks. This is 
not to say that the hortictdtural set does not have its serious 
snobblsms or that the Hceffliood of comnuttsig some hideous 
faux-pas is not just as great but at least the trends have a long 
enough cycle for everyone to have a chance of catching up with 
them. 

For some time, tastes in garden furniture have tended 
towards the simple, the muted, the sturdy, the indubitably 
English. Bright continental parasols, plastic - shaped to look fifce 
wrought-iron - and florafly decorated swing-seats can stffl be 
tracked down {if you must) but are deeply out of favour. 

Classic designs on the lines of Lutyens are the chief 
inspirational sources for garden ftaniture designers today and 
one can see why - in the muted grey of a typical English 
summer day they fuiffl the practical function, add an air of calm 
tranquOGty to the scene and never, ever jar. 

When ft comes to the conservatory, then a touch of Eastern 
rat tan could fit the bill - decorative enough to conjure up visions 
of Raffles and tropical verdancy and sturdy enough to serve the 
practical purpose. 

For those with gardens or patios stifl in need of a Rttte 
furnishing here are a few designs currently on offer. 


Old I m ptowmts : InflnftWy sturdhr end more hufcome then their modem ■ q uheW r fci 


■ WOODEN FURNITURE 
Simple but finely-made oak 
garden furniture is offered by 
Gaze Burvffl, a small company. 
Every piece is designed to be in 
tune with the more muted, 
subtle approach that seems to 
suit the English garden. 

Only English oak, one of Bri- 
tian’s most durable woods, is 
used, with the timber coming 
from carefully managed 
estates. Though some tools and 
machinery are, of course, used 
fin particular for steam-bend- 
ing the wood which gives the 
comfortable, curving corners) 


each piece is essentially made 
a nd fhvshpH by hand 

Photographed above Is the 
Court Seat - elegant, under- 
stated and durable - with com- 
fortable curves, angles and 
wide seat slats. It comes in 
two, three or four-seat versions 
and price ranges from £885 to 
£1,075. 

Gaze BurviH will be showing 
its products at the Hampton 
Court Palace Garden exhibi- 
tion, which runs from July 
6-10. The workshop at Plain 
Farm Old Dairy, East Tisted, 
Hampshire, GU34 SRT, can also 





Metal chair by Boundary Metab heavy enough to be awkward to steal 

be visited by appointment (tel: 

0420*687467) and a selection of 
colour photographs and a price r / 

list for all pieces is available 
from the address above. 


Rattan furnBxxe from The Piec sofa, ctuir and coftoa table 


SMALLBONE 

of DEVIZES 



SALE 

NOW ON 

Substantial reductions on 
all handmade Kitchens, Bedrooms 
and Bathrooms 

Telephone 071 589 5998 

■BAHiISJom V HABI|0<SATiE * KNUTSFOBD 

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■ OLD ACCESSORIES 
Sir Alastair McAlpine showed 
us, when, he disposed of a life- 
time's collectables, that it was 
quite amazing what people 
would pay fbr a couple of bat- 
tered flower-pots or some rusty 
spades if you could call them 
"old" or “antique". And In 
some cases, the epithets can 
actually stand for better qual- 
ity as well. 

Take spades. Those who 
know about such things tell 
me confidently that good-qual- 
ity Victorian or Edwar dian 
spades are far sturdier and 
more handsome than any of 
their modern equivalents. 

The Chelsea Gardener of 125 
Sydney Street, London SW3 
has given over a comer of the 
building to Marmaduke, a con- 
cession which supplies a con- 
stantly changing selection of 
old implements. 

Handsome, sturdy spades 
and hoes range between £3435 
and £50, trowels start at £1L95, 
watering-cans at £3435, a reel 
and line for marking out 
straight lines when planting 



Pagoda by Boundary Metal 

seeds is £3435 (pictured, top 
right). The best brand-names 
to look out for, the ones with 
the longest tradition, are - 
Brades, Skelton, Griffin Brand, 
Spear and Jackson “Never- 
bend", and ElweH 
A few old garden accessories, 
such as wheelbarrows, have 
been purloined by the interior 
decorating and design set and 
their prices have risen accord- 
ingly. At Marmaduke it Is hard 
tO find onp at much less than 
£300. 


■ METAL FURNITURE 

For those who like to leave 
their garden furniture outside 


Neat one, Martin. 




Electronics nor genius Marlin Grindrod wasn’t happy with any 
available hi-fi system. So he simply designed, and built, his Own; 

The AVI total hi-fi system* stacks up to little more dun 1 2" in height. 
And £3.596 in money. It is perfection at any price, described by one 
hi-fi reviewer as, without doubt, his “first choice”. 

(You’d find it no small pleasure to call 0453 752656 far deuib.) 

*The AVI tysum: pre-imp, mo mono-Uock power imps 
(not ptcmitdj 03 pbjw and tuna. 

A V ImhM L-M. Upfa FJO. bd ft*! T**, E*u. W. CWcU 
TAylww ; Mi> lUfm fay MBJ na7J , 



aQ year round. Boundary Metal 
makes the furniture that meets 
the brief. It is rustproof and 
heavy enough to be difficult to 
steal (a very important point 
this: in our part of London 
there seem to be gangs of 
thieves who specialise in gar- 
den accoutrements). 

In the standard range there 
are several benches, chairs 
(such as the one photographed 
here, £171) and tables, but the 
company is s r m M l and friendly 
enough to enjoy handling spe- 
cial orders. Recently they have 
created a series of pagodas 
(such as the one photographed 
here - prices start at £700), as, 
well as decorative structures 
encircling trees. 

All the famiture is sold from 
its Newbury offices (Boundary 
Metal, Boundary Road, New- 
bury, Berkshire RG14 5RT) and 
there is a small to selection to 
view there. Otherwise there is 
a leaflet available (tel: 
0635-42255) and furniture will 
be dispatched by carrier. 


■ RATTAN FURNITURE 
Strictly speaking. Rattan is not 
the ideal material fbr garden 
furniture as it is neither weath- 
erproof nor easy to move 
around. But it looks more 
romantic and is more comfort- 
able (when propped with cush- 
ions) than metal or wood. The 
Pier has one of the biggest 


selections around. 

Alison Richards, The Pier’s 
founder and managing direc- 
tor, believes that the market 
for rattan is expanding, with' 
many people using it not just 
for the conservatory hut for 
country cottage living rooms, 
bedrooms and dining rooms. 

For the eco-consdous it is' 
worth knowing that rattan is, 
(so The Pier’s excellent infor- 
mation sheet on rattan tells 
me) a renewable plant which 
can be collected and used with- 
out destroying either the vine 
or the trees themselves. Most 
rattan furniture comes from 
the areas where it grows most 
freely - Southern China, 
Indonesia, Malaysia, Thailand 
and The Philippines. 

Photographed here are a sofa 
(£149), chair (£75) and coffee 
table (£65). For those who pre- 
fer their rattan to look rather 
more decorative there is the 
curvier (and more expensive) 
Raffles Collection and the yet 
more decorative Sav annah. 

The Pier has 10 shops around 
the UK but none further north 
than Birmingham, so it offers 
delivery by post. (Tel: 
0235-821088 for details and bro- 
chure.) 

Global Village sells a particu- 
larly refined and decorative 
collection of rattan, much of it 
with an antiqued finlah. in par- 
ticular there is a wonderful 
colonial high-back choir which 


two years ago it was selling at 
£250 a time and today it is 
offering at £195 (either in finest 
green or Msculty antiqued fin- 
ish). Global Village has six 
shops in alL Tel: 0935823390 for 
details and brochure. 


■ PEBBLES 

If you have more a pocket 
handkerchief than an estate. 


Ptbbkr-fMttwn paving 

design matters more than ever 
- and in particular, the rela- 
tionship between paving stones 
and gram and plants. Blot 
KeiT-WUson has started apply- 
ing her decorative skills to gar- 
dens. In collaboration with an 
artist, Tim Coward, she Uses 
small pebbles to create pat- 
toned surfaces on the ground. 

Each job (s different and is 
done to commission, so prices 
vary enormously, in addition, 
materials used can vary from 
the white marble and beach 
pebbles used in this commis- 
sion (pictured), to glass, stone, 
brick, slate or other materials. 

Contact Blot Kferr-WUson, 49 
Northfleld Bouse, Peckham 
Park Road, London SE15 6TL. 
Tet 071-639 2277. 


ADvuimrMin 


ritCSL 

“You know, you can go all the way to the top , 
Simon, now you've started wearing 
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For Mail Order Catalogue. Please Telephone 071-498 2202 



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FINANCIAL. TIMES WEEKEND JUNE 25/JUNE 26 1994 


wpbkfND FT XI 



Lunch with the FT 


What would Mrs 
Goggins say? 

Lucy Kellaway is put through the Postman Pat test 


I am half-way through l unch 
with Howard Davies, director 
general of the Confederation 
of British Industry, and we 
are discussing Postman Pat 
That very morning the newspa- 
pers had been fun of Davies. He had 
been quoted making accommodat- 
ing noises about the Labour party, 
and had written an article chastis- 
ing Stephen Dorrell. financial secre- 
tary to the Treasury, for his naive 
views on dividends. 

But now he is sitting tn Andrew 
E dm unds, a rustic restaurant in 
Soho, central London, challenging 
me to name six Inhabitants of 
Greendale, a fictional village from a 
children's storybook . . . “Postman 
Pat, Mrs Goggins, Ted Glen, Jess. 
Peter Pogg ..." I am starting to 
struggle, and he helps me out "Rev- 
erend ...” he prompts. “T imms ," I 
supply the correct answer with con- 
siderable relief. 

I have just faDed to name the 
Famous Five, faded to name any 
Swallows or Amazo ns and failed to 
supply the name of Jennings' best 
friend. Davies is looking surprised, 
disapproving even. 

We have reached Greendale by a 
circuitous route. I have told him 
how thankful 1 am to be meeting 
him on my terms rather than on 
his. I was referring to his famous 
Christmas parties to which he 
invites a large group of like-minded, 
over-achieving fortysomethings for 
a highly -competitive quiz. I had 
heard tales of senior Treasury offi- 
cials being humiliated by being 
unable to name the ERM bands. 

“It's amagmg what some people 
don't know," he says coolly. He pro- 
ceeds to tell me about an even more 


hair-raising event that he is in the 
process of arranging for his seven 
an d nine-year-old sons. The children 
will answer questions about chil- 
dren's books (doubtless doing better 
than I did), sing songs in foreign 
languages and undergo tests of 
physical strength. 

Howard Davies evidently excels 
at this sort of thing . During lunch 
he shows himself to be an expert 
not merely on the relative pay lev- 



els of British bosses, but an Zimba- 
bwean wine (be is shortly off for 
what he calls a “love-in" with Rob- 
ert Mugabe, the country's presi- 
dent), on the structure of tendons in 
the leg, and the latest in soccer 
computer games. He reveals that he 
is fluent in French and Spanish, 
and is (or at any rate was) a 
first-rate sportsman. 

But that is to skip ahead. I had 
invited Howard Davies to lunch 
early this spring. I got a prompt 
reply from his secretary accepting, 
but saying that he did not have a 
free lunch slot until mid-June. 
Nearer the time, she called again to 


namp Andrew Edmunds as his cho- 
sen restaurant. It was a predictably 
unpredictable choice, full of film 
people, with the odd sprinkling of 
alternative business types. 

To prove he fits the latter cate- 
gory Howard Davies arrives on his 
bicycle, and is already installed 
when I arrive by taxi a minute or 
two late. He orders a bottle of min- 
eral water. “I have two non-drink- 
ing months a year just to prove it 
can be done,” he explains. “It makes 
you lose weight without having to 
concentrate on It” I note that he is 
not exactly a fatty, but he replies it 
makes him “look better on the 
beach". 

He glances at the menu, and 
makes a healthy choice. TU have 
the salmon and thpn the 

crab cakes, for a chan ge," he says. 
A change from what? I wonder. 

Was he really busy every day 
since I invited him ? He describes 
the endless succession of people 
who invite him to lunch to lobby 
him about this or that and his 
efforts to avoid a time-wasting 
meal In addition there is the end- 
less round of associations and feder- 
ations, each with their annual 
lunch or dinner. 

The diffi cult thing is to think of 
something new to say." 

I ask whether he really needs to 
say something interesting every 
time , surely no one would notice if 
he coasted occasionally? He dis- 
agrees: “You’d quite quickly 
acquire a reputation of being bor- 
ing." 

I get the impression that in 
Davies's book, boring is a serious 
allegation. Everything about him 
declares that he will not be con- 



Hoarard Davies: an expert not merely on the relative pay levels of British bosses, but on Smtnbwaan wine 


sidered that Unsuccessful might 
rank nearly as low. 

“I tend to do single-mindedly 
what I am doing at the time,” he 
says as we start to discuss bis 
career. “At Oxford I did Oxford. I 
did a certain amount of work. I 
acted in OUDS, edited a newspaper 
and played games." He recalls how 
he applied to the BBC after Oxford, 
but was turned down without even 
an interview - it seems to rankle 
even now. His friend Peter Sto- 
thard, now editor of The Times, 
made the grade, but Davies points 
out that he did better still by land- 
ing a job in the Foreign Office. “I 
did what grammar school boys did 
and asked what is the most difficult 
thing to do? At that time the foreign 
office was.” 

In any case he reflects that jour- 
nalism is a young person's profes- 
sion. At just 43, surely he still 
counts as young? "No, not since I 
did the Gazza injury to my kn«> last 
year. Gam was a fit young boy of 
34 and he's come back. But the sur- 


geon said to me: we don’t think it's 
worth repairing these if yon are 
over 40." Then follows the descrip- 
tion. of tendons and cartilage in the 
knee, which I only half understand. 

Yet Davies does not think of him- 
self as old either, and says that will 
not happen until Mick Jagger stops 
singing, and there Is no longer talk 
of the next Rolling Stones tour. 
Hare he has hit on our first shared 
interest We discuss great Stones’ 
concerts, and I boast that I last saw 
than In Cologne in 1990. He replies 
that he saw than in an even more 
unlikely place in Paris. 

Whatever age Howard Davies con- 
siders himself, he certainly looks 
older than bis years. I ask - as 
politely as it is possible to ask such 
a question - whether he thinks his 
senior appearance has helped give 
him, especially earlier on, extra 
gra vitas. 

He looks neither surprised nor 
offended. He replies that both he 
and John fiirt, director-general of 
the BBC (another chum), may have 


been helped by going grey or bald 
early. However, he insists that he 
does not look “older in a total way. 
It’s only hair in my case. I'm rela- 
tively fit for someone of my age”. 

The conversation is getting 
sticky, and the waitress rescues the 
situation by asking if we would Eke 
a pudding: 1 order a tiramisu, and 
he an equally wicked hot almond 
cake covered in cream. Ldedare the 
meal so for to have been “abso- 
lutely delicious". He agrees that it 
has been “quite good". 

Does- he care about food, I ask. He 
turns out to be a keen- cook, and 
says he is much better than his wife 
(Pra Keely, producer of the BBC 
ptrogrannne Question Time) at pre- 
paring an impromptu meal for 
guests. Apparently he can knock up 
a nice Italian pasta or risotto, a stir 
fry or something Indian in just 20 
mtmrtB B using whatever is In the 
fridge. His wife is a better bet for 
guests who have been invited long 
in advance. “She follows recipes 
that say: Take a lobster, boD with 


AtfWMImood 


four discard lobster, reduce 

to one teaspoon, pour over a scal- 
lop, discard settop’.” 

Apropos of nothing in particular, 
he then starts tolling me about a 
computer football game that his 
children have. I have already said 
that a) I have no interest in football, 
and b) I do not know anything 
about computers. Nevertheless, he 
gives a lOminute soliloquy on the 
workings of this game, the noises it 
mabpg when the ball hits the goal 
post, the information it conveys 
about players of European teams, 
and much else besides. 

I suggest that it is not only his 
sons who are wild about this game. 
He -half laughs, but certainly does 
not aflmft to having wasted hours 
bait over the screen himself. 

I ask for the MU, which turns out 
to be less than £40 including ser- 
vice. I pay, and walk tdm to his 
bike. “That was too cheap for the 
Financial Times,” he says. “Perhaps 
we should have lunch all over 
again." 


Celebrating rites of passage 

Americans know how to negotiate life's stepping stones , says Jurek Martin 


M y daughter, Caro- 
line, graduated 
from Harvard 
recently and 
there was much celebration - 
deservedly for her; more self- 
ishly for the parent freed of 
forking out £25.000-plus a 
year. 

The warm glow of the three 
happy days of rejoicing at “the 
other Cambridge" still lingers, 
but with it a serious thought 
that whatever else they may do 
right or wrong, Americans 
understand the importance of 
commemorating rites of pas- 
sage - and there are few more 
serious than ob taining a uni- 
versity degree. More than that, 
marking the occasion properly 
is a long-term investment in 
the future, for university and 
graduate alike. 

Dim 30-year old recollections 
or Oxford are of a quick shuffle 
in a cap and gown, rented by 
the hour, along with a handful 
of others who bothered to pick 
up their degrees in person, the 
odd bottle or fizz huddled 
under an umbrella, and back to 
the grindstone. Younger 


friends report it has not 
chang ed m uch since. 

Harvard, America's oldest 
university, has been doing it 
properly for 343 years and so, 
for not as long, have most 
other groves of US academe, 
where to graduate from college 
(and high school and kinder- 
garten and typing school come 
to that) is regarded as worthy 


ten on. 

But, as US vice-president A1 
Gore kept repeating (in a dif- 
ferent context) on Harvard's 
glorious Commencement Day. 
“The cynics are wrong." There 
ought to be nothing cynical as 
the university’s bachelor’s 
degree citation puts it, about 
“passing into the company of 
educated people", nor about 


Dutch elm disease") got appre- 
ciative laughs. 

But Guinier was nothing if 
not challenging. She is the 
black law professor nominated 
last year to run the justice 
department's civil rights divi- 
sion but ditched by President 
Clinton after she had come 
under fire from the far right 
for allegedly advocating 


‘Marking graduation properly is a long-term investment 
in the future — for university and graduate alike’ 


of proper commemoration not 
only by those receiving degrees 
but all who have helped them 
- parents, friends, lovers, 
teachers, even bank managers. 

Cynics say America overdoes 
this sort of thing, giving 
awards and recognitions to 
those who do not really 
deserve them. Even now a con- 
troversy rages in higher educa- 
tion over whether what is 
known as “grade inflation” 
make degrees themselves 
worth the paper they are writ- 


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the sense of occasion and its 
own history that Harvard puts 
on display every year. 

My daughter’s graduation 
was no exception. Of course, it 
helped that the weather was 
magical but local lore has it 
that it never rains on Har- 
vard's graduation and. if it 
does, it is only scotch mist, 
which no one notices. 

Certainly a crowd that must 
have numbered 25,000. only 
about a third of them getting 
first and higher degrees, could 
scarce forbear to cheer at 
every opportunity (with the 
business school graduates 
cheerfully and greedily waving 
dollar bills). 

The featured guest speakers 
were A1 Gore (class of ’69) and 
recipient of an honorary degree 
this year, and T jni Ginnier. In 
truth, the vice-president was 
not at his best in a speech that 
wandered more than a tittle 
from its central text - that 
cynicisin is the enemy of 
democracy. 

But his now well-rehearsed 
line in self-deprecation (Tm a 
living example to the millions 
of Americans suffering from 


weighted voting according to 
race. 

Her message - that the prob- 
lem of violence in inner cities 
is but a minor image of the 
fault lines in established soci- 
ety - got a few of the parents 
grumbling, but was delivered 
with a force and a logic 
designed to dispel complacency 
in the younger generation pres- 
ent 

Best of all were the student 
speakers, chosen by the faculty 
and then given additional 
training by a drama coach. 
One gave the traditional Latin 
oration, replete with references 
to the Simpsons and White- 
water. Another wondered if the 
manic pursuit of goals left 
room for a real life. A third 
urged the law school graduates 
to take up cases pro bona (for 
free). A few were sentimental, 
but not weepy, and all were as 
pleased as punch to have a role 
in the rituaL 

Nine honorary degrees were 
awarded, the selection again 
showing the Catholicism that 
Harvard prizes but which Brit- 
ish universities, too often con- 
sumed with petty politics and 



BLOCK CAPITALS PLEASE 

1 will sponsor 

BOY □ GIRL Q EITHER Q 

Enclosed my Clft of E15/E45/ESCVE180 
(cheque) 

OR please debit my Access/Visa account 
£15/E45/£90/£180 

Card No — 

Expiry Date 

Signature.. _4_ _ — 

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Address 

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Send lo International Christian Retiel. 

■ 

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Freepost TW3028. Sevenoaks. Kent TNI 3 1YZ . 

| or Telephone 0732450250 

005 | 


“Can we go to 
school please?” 

In the long run, the problems of the Third World 
- over population, war, disease, famine - will 
only be solved by education. Yet these children, 
and thousands like them, cannot go to school 
because there is no one to pay the modest 
fees. Even for those who can go, schools are 
desperately short of basic necessities, 
classroom furniture, exercise books, pencils, 
chalk, clean water. safe latrines. You can help 
provide all these by sponsoring a child - it's 
only £15 a month. 

Can you think of a better way 
of spending £15? 


IntmAkS 


Chanly No 298316 

INTERNATIONAL CHRISTIAN RELIEF . 


ideology, sometimes fail to 
match - as witnessed yet again 
by the carping surrounding 
Clinton's doctorate of laws 
from Oxford. 

As well as Gore, they 
included Sadako Ogata, UN 
High Commissioner for Refu- 
gees; Benny Carter, the black 
jazz musician; an ancimt Han , 
vard classics professor; and 
even the president of Yale, 
g rinning as the ipeo tiop Of Ms 
university was greeted with 
universal hisses. 

Commencement Day is also a 
great occasion for alumni, 
marching around Harvard 
Yard according to their year, 
the very oldest in wheelchairs, 
their fund-raising activities for 
the university recorded pub- 
licly. 

And we are talking serious 
money: in less than a month 
since its launch, the new Har- 
vard campaign to raise $2bn 
had generated over $670m, 
more than 1% times as much 
as the CMRin Oxford raised 
over five years. 

The discrepancy can be put 
down to differences in state 
support, national wealth and 
attitudes towards philan- 
thropy, as well as a testament 
to the career successes of old 
Harvard men and women. But 
another element must surely 
come into play - the great 
sense of obligation that Har- 
vard graduates feel towards 
the university. 

The relationship is not a 
one-way street An Ivy League 
degree looks good on any 
rdsumd, as does one from 
Oxbridge, although it is less of 
a guarantee of instant success 
and riches in today’s tough 
employment market than it 
was in palmier economic 
times. But the Harvard net- 
work of important connections 
is not left to chance. Harvard 
clubs fiourisH all over the 
world, bringing people together 
often for more than a drink. 

Rarely does a week go by 
without my wife. Kathleen 
(class of 72), receiving Harvard 
mail - and not all of It, by a 
long chalk, asks for money. 

Oxbridge is much less good 
at preserving this sense of 
mutual assistance. This was a 
message I tried to convey in a 
modest speech last autumn to 
an Oxford dinner and it 
seemed to have been well- 
received (even by John Patten, 
the education secretary). But 
there has been no communica- 
tion from the college since, and 
my inclination to contribute to 
the Oxford fund has not grown 
more keen. 

Harvard, on the other hand, 
does even the little things well 
in sending its products on their 
way. Within two hours of get- 
ting her degree from the Mas- 
ter of Leverett House. Caroline 
had it framed: a quick service 
for just 27 bucks by the Har- 
vard Co-op. ready to be hung 
forever on a wall I am not sure 
in what dark closet my rum- 
pled piece of paper can be 
found. 




Harwd bu 


! school: students waved doBar Mh on graduation day 





ra«ju*scunnuo 


OF LONDON 




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S «*Ti ng roast joints of beef, 
lamb or pork used to be syn- 
onymous with Sunday 
Timrh- No longer. Tbe ward 
“roast" has bran hijacked. 
Trendy menu-writers have discov- 
ered its power. Nothing, it seems, can 
start salivation Caster this summer. 
Pan-fried and char-grilled are passfe- 
Roasts are in. 

The hottest menus are peppered lib- 
erally with roast and roasted foods, 
the terms sometimes being applied to 
just about anything cooked in the 
oven. Baked tomatoes have become 
roasted tomatoes, although the cook- 
ing method has not changed one jot 
Aubergines, red peppers, fennel, 
garlic and courgettes are other likely 
candidates for this treatment in fash- 
ionable restaurants, where you may 
be offered roasted zed pepper soap, 
slow roast tomatoes, and roast figs 
with honey and almonds. But the cho- 
icest dish of the lot, the dish of sum- 
mer 1994, most be roast fish. 

Basically, roasting achieves the 
same searing effect on fish as grilling 
or frying, but with fewer anti-sodal 
side effects. There is less danger of 
the fish catching and burning as it 
cooks, so you. da not have to watch, it 
closely. And most of the cooking 
smells are trapped within the walls of 
the oven instead of the cook's clothes 
and hair. 

Whole fish - such as sea bass, sea 
bream, snapper or grey mullet weigh- 
ing 2% to 3YJb - are a popular choice 
while a middle cut of cod of around 
the same weight is acceptable, too. 
For those who like everything to 
come ready-portioned, fillets and 
steaks of turbot, brill, halibut and cod 
are all suitable. 

Whatever you choose, one crucial 
due to success is using high heat If 
the temperature is low, the fish will 
not be sealed and seared without and 
cooked juicily within, as it should be. 
Instead, juices wDl ooze out and the 
fish will stew in them, quite possibly 
leaving the flesh dull and tasteless. So 
make sure you heat the oven thor- 
oughly in advance - the hotter, the 
better. 


How long win fish take to cook? 
Thickness is as important as weight 
As a general rule, allow 15 minutes an 
inch at the thickest part - but check 
by testing. Cut down on to the back- 
bone at the thinlmst part: the fish is 
ready when the flesh has turned 
white right through. If the fish is 
ready before you are, let it rest in the 


plate-warmer. 

Whole fish are protected against 
drying out during ranking by their 
markintnsh skins , and the skin can be 
a choice titbit if roasted crisply. Plac- 
ing tbe fish an a rack or a bed of 
vegetables raises it in tbe roasting 
pan and allows the to circulate 
more freely - which is all tbe better 


to crisp up the stein A tan-assisted 
oven might also be of some heipL 

Be sure tbe skin is dried thoroughly 
after rinsing and before coolring. 
Then, brush it with a thin film of oil 
or melted butter and sprinkle it with 
sea salt and a good sanding of freshly- 
ground black pepper. 

I£ in spite of all this attention to 


detail, the skin does not roast as 
crisply as you would wish, haste the 
fish again just before serving (with 
butts" or on. or paint it with lemon 
juice or a light sugar syrup and a 
splash of soy sauce) and flash it 
briefly und er a very hot grill for a 

s mlittg ffnteh- 

Some cooks like to slash whole fish 
with, two or three oblique cuts down 
side before cooking. This speeds 
the process but encourages some loss 
of moisture. the wounds can 

be gfa»mrfMrf (partially, at least) by 
stuffing with slices of lemon or 
slivers of herb or spice-flavoured but- 
ter. 

On balance, however, I think it bet- 
ter to leave the skin unscathed and to 
save such extra flavourings for stuff- 
ing into the belly or to use for saucing 
when, serving. 

Fish fillets and steaks, lacking the 
all-enveloping pro te c tion of skin, need 
more careful treatment. Dust than, 
with a modicum of floor to check they 
are thoroughly dry, and lay them in a 
shallow roasting p» n or hnin^g tin 
that is robust enough not to buckle 
when subjected to h i gh heat. 

Tbe tin should be brushed lightly 
with butter or oil and the pieces of 
fish placed well apart If jam-packed, 
the beat will be unable to circulate 
property and the fish risks stewing. 

The simplest - and. in a way. the 
most sophisticated - recipes call for 
topping the fish with just a dusting of 
flour and a drizzle of oil or melted 
butter, and for turning it at half-time 
(but with great care, to avoid break- 
ing the crust). Such plainly-roasted 
fish steaks or fillets can be sexved just 
as they are, pure and simple, or part- 
nered with a splendidly showy sauce. 

More often (and this is easier to get 
right), the pieces of fish are cloaked 
with buttery or olive oil-soaked bread 
crumbs flavoured with a few herbs or 
spices. 

By the time the fish is just cooked 
and still moist in the centre, the 
rrnmhg should have dried out to an 
appetising golden crust If necessary, 
a quick flash under a very hot grill 
will ensure a crisp finish. 


Great British Eating 

New look for a high-fryer 



Catch of the day: chef Chris Oakley choosing Ms lunch 


F ish and chips are 
not what they 
were. The great 
standby supper 
dish for the British 
working classes is changing its 
profile - and so is Hie industry 
that supplies it 
Same 10,000 fried fish shops 
in tbe UK generate annual 
sales of more than £600m. fly- 
ing more than 60^)00 tonnes of 
fish and 600,000 tonnes of pota- 
toes. One of their leading pro- 
ponents is John Barnes, ebul- 
lient chairman of Britain's 
most famous chi p pie , tire pub- 
licly-quoted Harry Ramadan's. 
He visited the first Ramsden’s 


shop at Gitiseley, Yorkshire, in 
1968 and liked the product so 
modi that he bought the com- 
pany. 

Barnes says: "Our aim is to 
make eating fish and drips fim, 
using the original Guiseley 
design from the 1930s as tire 
setting for all the restaurants.” 
There are now 10, including 
<me in Hang Kang, and other 
overseas outlets are to open 
Sochi in Melbourne **nd Singa- 
pore. Requests for information 
are freq u e nt, many from over- 
seas; they are answered by the 
company’s own public rela- 
tions department. 

But Ramadan's is only part 


of the story. If you walk into 
any restaurant today serving 
modem British food, there is 
bound to be a variation on fish 
and chips. It has also became a 
fashion food, with top chefs 
eager to outdo each other in 
their style of presentation 

Indeed, cod and chips with a 
mint pea parte (£9.95) were on 
offer last week to millionaire 
author Jackie Collins and poli- 
tician Cecil Parkinson who 
were eating (separately) at 
* London’s fashionable Le 
Caprice restaurant 

Fish and chips is a simple, 
unpretentious and relatively 

inexpensive dish for the 

1990s. But as more chafe save 
roast cod (healthier than fry- 
ing), it will inevitably make 
this increasingly scarce fish 
even more inaccessible. 
Already, it is almost tbe same 
price as farmed aatnwm. 

To ffad a fish »r>d r^rip res- 
taurant that bridged tbe gap 
between tradition and moder- 
nity, I took the boat train to 
Harwich, Essex. There, at tire 
tire Pier Hotel, I discovered a 
restaurant tinged with history, 
romance, and a little sadnesB . 

The original Pier Hotel was 
built in 1860 and it prospered 
for 90 years as the quays bus- 
tled with ferries to and from 
continental Europe. Then busi- 
ness foil away and the hotel 
was bought in 1977 by two 
local businessmen, Gerald MU- 
som and Richard Wheeler. Mfi- 
som had an established restau- 
rant, Le Talbooth, at Dedham 
near Colchester, Essex, while 
Wheeler was chairman of a 
Colchester wine merchant. Lay 
& Wheeler. 

On trips to Boston, in tire 
US, they had seen *h*» popular- 
ity of such restaurants as Jim- 
my's Harbourside, where fresh 
fish was cooked simply and 
sold cheaply and the queues 
never seemed to disappear. 


Their aim was to offer tire 
same at the Pier, where the sea 
is 50 yards from the front door. 

The romance was supplied 
by tire appointment of Chris 
Oakley as chef. Today, Ire is in 
partnership there with his 
Swiss wife, Vreni, whom he 
met at Le Talbooth. Indeed, 
Oakley was cooking in Davos. 
Switzerland, when Milsom 
asked him to take over at The 
Pier. 

Oakley is perhaps the most 
highly-trained fish and chip 
chef in the country, having 
spent two years at catering col- 
lege followed by another two 
years at Claridge’s, case of Lou- 
don's top hotels. He immersed 
himself in the job. often visit- 
ing the famous SeasheH ffeii 
restaurant at Lisson Grove, 
north London, to see bow it 
operated. 

To choose the batter for his 
own fish, he set up a blind tast- 
ing of seven different versions 
- including beer, egg, yeast, 
and flour and water. That 
decided, he found t hat living 


of gating fresh fish. 

“When I arrived, I thought it 
would be quite easy for me to 
buy the fish 1 wanted from tire 
local fishermen, but it took me 
several years to win their con- 
fidence,” he says. He has no 
regrets, though “in the sum- 
mer months the fish here - 
turbot, bass, brill, crab, lobster 
and Dover sole - are wonder- 
ful, and sometimes in such 
abundance that I can let other 
chefs know about the day's 
catch." 

The restaurant Is on the first 
Door, from where you can look 


out over tire estuaries of the 
rivers Orwell and Stour to Con- 
stable country and watch the 
fishing boats, yachts and fer- 
ries. My cod and drips were 
delicious, al t ho ug h I kept an 
envious eye an the spanking 
fresh Dover sole being eaten 
alongside me. 

Oakley’s formal background 
was obvious: an exciting array 


of four different types of bread 
rolls before tire meal and at the 
end some stunning petits fours 
with the coffee. 

This, however, is where tire 
touch of sadness comes in. 
There is no denying the popu- 
larity and success of The Pier, 
which serves 45£00 customers 
a year and is one of the town’s 
biggest employers in an area 
with unemployment well above 
the national average. But it is 
too far from the real action. 

The restaurant is in the cen- 
tre of Harwich town, which, 
used to be the gateway to the 
quays. Now, though, most of 


the traffic which passe* in and 
out of Harwich en route to tire 
Continent use a modem termi- 
nal at Parkeston Quay, two 
miles away. 

The Pier offers the great 
~Rrifiah ~mpal of fish and chips 
in style. But, to flourish for 
another 100 years, it needs a 
new location. 

■ The Pier at Harwich, Bar-. 
Wick COI2 3HH. tel: 0255-241 
212; fax 0255-551 922. 

■ Loudon Osh restaurants: 
Brady’s, 513 Old York Road, 
SW18 (081-877 9599); Geale’s 2 
Farmer Street, W8 (727-7989); 
Nautilus, 27 Fortune Green 
Road, NW6 (435-2532); SeasheQ, 
49 Lisson Grove, NWl 
(723-8703); Seafresh, 80 Wilton 
Road, SW1 (828-0747); Upper 
Street Fish Shop, Nl (359-1401); 
and The Two Brothers, 297 
Regents Park Road. N3 (081-346 
0469). 

■ Outride London: The Fish 
Inn, Didsbury, Manchester 
(061-448 2468). Harry Ramsd en's 
restaurants can. be found in 
Glasgow, Edinburgh, the Metro 
Centre at Newcastle, Black- 
pool, and Manchester and 
Heathrow airports. Notting- 
ham and Dublin shops are to 
open soon. 


You can never 



be too glamorous 



for the Peninsula 



Appetisers /Lucia van der Post 

Such a cordial welcome 


Nicholas Lander enjoys one of 
Britain's most satisfying meals 


near the sea was no guarantee 


Beverly Hills. 


THE PENINSULA 

BEVERLY HILLS 

® 

Sh ah t The ' E \ r g Hit wee 


Vcwk ■ h«i* 



I t is tire height of the eld- 
erflower season and I am 
clutching a friend's recipe 
for elderflower cordial, to 
which my family is a ddicte d. 
The commercial versions are 
not bad but tire home-made 
ones are ambrosia. We have a 
car bootful of elderflowers, 
sugar in the cupboard and all I 
lack is tartaric acid or citric 

acid 

I start off at Waitrose, Safe- 
way and Sainsbury and am in 
some despair when all fail to 
yield the essential ingredient. 
On to Boots. “Would cream of 
tartar do?” asks the girl behind 
the counto*. It will not A help- 
ful pharmacist tells me that 
tire can obtain some tartaric 
arid by Monday (it is now Sat- 


urday and I do not fancy the 
elderflower heads' chances of 
surviving that long), 

I head up the high street 
stopping in every chemist 
along the way. Eventually, a 
small pharmacist sells me cit- 
ric arid and 1 am limp with 
gratitude. He tells me that 
many chemists do not stock it 
because drug addicts use it in 
conjunction with heroin. If this 
is true it seems rather hard on 
the brewers of elderflower 
syrup. 

As I write, the elderflowers 
a re b rewing splendidly. I am 
buying up all the tartaric add 
that I can and the nice phar- 
macist at Boots has ordered in 
readiness for next year. 

But why should it be so diffi- 


cult to find some thing so inno- 
cent? 

PS. The recipe - with grate- 
ful thanks to Momy Kay Davi- 
son: 

Ingredients: 25 big elderflower 
heads; 21bs white sugar; 80 
gr ammes tartaric arid or citric 
add; l % pints boiling water. 
Method: pour the boiling water 
over all the ingredi ents and 
stir each day for four days. 
Strain through muslin a nd fill 
bottles. 

□ □ □ 

Forget authentic earthenware 
dishes from tbe Auvergne, 
microwaves and make-your- 
own pasta machines, today's 
hottest accessory for the seri- 


ous cook is a blow-torch. 

Some weeks ago my 
son-in-law served a perfect 
crime brutes. The topping was 
evenly crunchy and a heavenly 
shade of caramel - so unlike 
my own efforts with a standard 
grflL 

Top chef Alastair Little spe- 
cifically recommends a blow- 
torch as a culinary tool in his 
book Keep It Simple. The blow- 
torch can be used for crisping 
potato toppings, singeing 
chickens. caramelising 
bananas, browning and produc- 
ing perfectly even brutees. It 
costs £10 and runs on propane 
gas. The Taymar hand-held 
version is perfect - do not use 
anything more powerful - and 
is available In DIY stores. 



Stirred, but 
not shaken 


N at to tong ago a 
friend confessed 
that he bad been 
to Dukes Hotel In 
St James’s, central London, 
and ordered a dry martini. 

The bannan at Dukes, Gilbert© 
Pretl, is rumoured to make 
the best martinis in London, 
bat my friend found that he 
bad been unable to flnisb the 
glass: it was Jnst that Ut too 
strong, and just a Uttto bit too 
dry. 

It is that austere and 
uncompromising stole of the 
martini which makes tt tbe 
greatest of cocktails. One's 
first martini should be a 
baptism of fire: a martini is 
a John Wayne of a drink 
which separates men from 
boys. It Is one of the very few 
tilings X took forward to when 
crossing tire Atlantic, for 
Americans are deeply serious 
about martinis. 

In 1977 P reside nt Jimmy 
Carter launched a famous 
attack on the “three-martini 
lunch” as a symbol of tbe 

progressive ooevnee w ixm 

American business worid. 
American drinking habits are 
distinctly odd. Tfeey drink 
three cockttite then rtt down 
to teed water rather than wine 
with the meaL It ball a bit 
like a general who unl eashes 
a terrible artillery barrage 
at tire enemy fines at tire 
beginning of a battle, then 
forgets to send in the troops. 
Three pre-prandial martinis 
would seem to be a lethal dose. 

A great deal of mystique 
surrounds the creation of a 
martini, bnt the redpe looks 
deceptively simple. The Saooy 
Cocktail Book (Constable, 

£635) gives the following: 

“1/7 dry vermouth; 6/7 dry 
gin, stir well with ice and. 
serve with a squeeze of lemon 
rind.* Which is certainly only 
half the story. 

In order to find out the 
other half, I went along to a 
tasting of dry martinis at the 
Atlantic Bar and Grill in 
Piccadilly, London’s latest 
late-night haunt. Five top 
London barmen were standing 
witb their cocktail shakers 
in their hands: Dick Bradsell 
from the Atlantic; Salvatore 
Calabrese from the 
LanaSbarongh; Peter Dordfi 
from the Savoy’s American 
Bar; James Scott from the 
Groucho Club In Soho; and 
Lado Stojanovic from 
Maxwells in Covent Garden. 

Judging between tbe five 
was hard work Indeed. AH 
displayed a very high level 
of professionalism. Bradsell's, 
Calabrese’s and Dorellis were 
quite similar in style - all 
three were deeply lemony. 
Dorelli’s was slightly different 


in that it w»s toned, mtoas 
the peel In the original Savoy 
cocktail glass: Justified by 
tradition, bat «v«r so ittghtiy 
nude. Stotnoric’* was the 
toast dry of the Ovt, to that 
it was the only me to which 
one coaid detect the flavour 
of v erm outh which made II 
hair way to a gin and French. 
Scott's was possibly the driest, 
to that not even the toman 
was able to dank the armour 
of tbe gin. 

What surprised tee were the 
choke* of gto. 

They were unanimous In 
their condemnation ef 
Gordons and it* new 37-8 per 
cent bottling, hot all flee bad 
s e l ected gto* at « per cent 
Of these, two were B eefea te r, 
two Bombay Sapphire and one. 
Booths. Contrary to tito 
teaching of great barmen 
beyond these shares, who me 
export strength gin at around 
47 per cent, these British 
barmen insist that their 
relatively weak marttob are 
the best American enstemut. 


Ian Fleming 
invented a 
heresy for 
James Bond 


they maintain, are astounded 
by their delicacy after the 
fire-water they drink at home. 
I have to say ! was not wholly 
convinced by this argument 

Of tire other elements which 
go into a martini, four out of 
five favoured Martini Extra 
Dry as their vermouth, while 
the one remaining bannan 
used Noilly Prat In tbe majn T 
tbe vermouth does not end 
up in the drink, being either 
swirled round the glass or the 
shaker. Cfiear, fresh, 
quick-frozen ice was 
absolutely indispensable; and 
it should be stirred, not 
shaken: niraMng bruises the 
gin. This Utile heresy was 
introduced by Ian Fleming 
of James Band feme. 

Another heresy was the 
olive. Dorelll thought this 
went hack to the film MASH, 
where one of the characters 
is offered an olive-less martini 
and exclaims: “Who no olive? 
Yon can't drink muytfak 
without ofivesT Yon can, . 
apparently. An olive will jnst 
make your cocktail oily. 

I emerged from the testing 
slightly light-headed and not 
wholly convinced that I had 
really got to the bottom of the 
martini debate. Next stop 
Dukes. 

Giles MacDonogh 


DAVID 1 WATT 

• riM \\i\i. s ; nun n • 


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JUNE 25/JWNF. 7.6 !<m 


WEEKEND FT XIII 



OUTDOORS 


Be wary of 
Blairi — give 
cistus a vote 


Robin Lane Fox finds that sun roses 
can leave their rivals in the shade 


F lowers are everywhere 
and it seems mad to 
waste a weekend in a 
town. Roses have even 

t J?* 611 kee P in 8 Pace with 
the news. I have no doubt about my 
sight of the week: it confronted me 
m an old brick wall in Oxfordshire 
with an allegorical message. 

All over the brickwork ran the 
opulent flowers of the old-fashioned 
rose known as Blairi Number Two. 
Watch out, you fellow travellers, to 
judge from this rose’s petals. The 
outer edges are a soft and appealing 
pink but the centres are a deep rose 
red, verging on bloodstains. 

Blair’s Number Two is a class act 
as a climber, like the lesser-known 
Number One. Perhaps we will see it 
in party buttonholes in 1997. But 
you might be reassured to know 
that it is extremely prone to rot 
when looking its most promising, 
and that it never performs if it is 
given its head. It looks best on a 
scaffold of wood or bamboo. 

This weekend, the elusive Blairi 
Number One can be seen at its best 
in the great rose garden of Mottis* 
font Abbey in Hampshire (where I 
think I remember it on the wall in 
the far left-hand corner as you enter 
the first walled square). Number 
One is nothing but a pale powder- 
pink, and I have to say that Number 
Two has eclipsed it 
Roses of this type hate my soil; 
they show signs of distress and 
quickly lose their leaves. In order to 
bide them, I look to the other great 
shrubs or high summer in the home 
counties. Three mild winters have 
done wonders for them and, this 
weekend, the best have never 
looked better. On a poor soil for 
roses, try sun roses instead. These 
are the evergreen family of cistus 
which will leave Blairi Numbers 
One and Two looking very 
parochial if you ever transplant 
them to gardens further south. 
Cistuses conjure up two different 


settings which the post-war intake 
of gardeners are busily imiHng 
With one eye, I picture them on the 
chalk soils of Hampshire, spiffing 
out of borders below the mallow- 
flowered abutilons which have 
come safely through the recent 
frosts between Winchester and 
Newbury. With the other, I picture 
them where they grow wild: in the 
gardens of expatriate-built holes 
within reach of tiw Mediterranean. 
If I was banished from Britain, 
Blair's roses would be no good at 
all: I would switch over in quantity 
to cistuses (a plant which gardeners 
in France, Sp ain and Italy stm use 

unimaginatively). 

Cistuses, like horses, have ran 
through my adult Me, some staying 
longer than others. By now, I know 
which ones look best Go for the 
white-flowered forms with dark, 
chocolate blotches and leaves with 
a sticky surface and a resinous 
smelL I never understand why 
many gardeners, especially in hot 
climates, choose the pink-flowered 
forms instead: varieties such as Sil- 
ver Pink or Sunset are much the 
least interesting. 

The first choice has to be Cistus 
cyprius, which is surprisingly hardy 
in Britain and magnificent in 
French or Italian settings. It puts 
up with awful drought and soon 
reaches 6-7ft, needing enough room 
to spread itself. But be sure that 
you site it correctly because you 
cannot move it later. Indeed, the 
one golden rule for cistus growers is 
never to transplant an established 
bush. This spring I broke the rule, 
just to test it; the result is a dead C. 
cyprius, just as the books promise. 

If cyprius is too big for your taste, 
you might like to risk others that 
are denied to those of us in colder 
gardens, fn light shade, there is a 
white-flowered cistus, called palin- 
hae, which will flourish unexpect- 
edly under tall trees. I first saw it at 
Wisley and then checked its perfor- 



MotUsfant Abbey in Hampshire: Ms weekend, tlw elusto Blairi Number One can be seen at its best in fee peat rose garden 


mance with Graham Thomas, the 
living master of ground cover. 

C. palinhae really does spread in 
light shade, although it will look 
messy if you have the sort of trees 
which drip anything sticky on to 
the ground. It makaw low bushes 
(up to 2ft) and is a much older and 
grander alternative to yet more 
hardy geraniums. Anyone with 
shade in a sheltered garden should 
try two or three bushes and, if they 
survive the winter, take dozens of 
cuttings next year. 

Cistuses are extraordinarily easy 
to multiply, as you can prove for 


yourself this very weekend. Now is 
exactly the moment to strike. Sim- 
ply pull off some of the soft shoots 
which are not flowering at the tips 
of a plant, and pot them up in a 
light, sandy soiL They win be wen- 
rooted by September so long as you 
water them. 

Londoners and expatriates also 
have the choice of two lovely forms 
which lack sufficient hawtingsB for 
me. The best is lusitaniais decum- 
bens, which has white flowers with 
crimson eyes and lasts as a broad, 
spreading bush for a very long sea- 
son. 


It ought to be exploited every- 
where in its native Spain and Portu- 
gal, but gardeners seem stuck with 
exotic South African daisies and 
foreign bedding plants. Against a 
sunny wall in a warm city, it will 
last for many years; it is my pick of 
the mam family. 

I would match it with a hybrid, 
raised in Hampshire: Halimio cistus 
wintonensia which has small, grey- 
green leaves and cream-yellow flow- 
ers with a chocolate zone in its pret- 
tiest named variety, Merrist Wood 
Cream. Be warned, however, that it 
has never survived moderate frost 


in sheltered corners of Oxford and 
is emphatically a plant for a pot or 
a warm garden here or abroad. 

Years of losses have taught me 
there are few certainties in the 
world of the dstus, but that the 
taller and smaller-flowered white 
laurifolius is one of them. It 
remains a backbone of summer bor- 
ders and banks, even in places 
where the frost is relatively sharp. 

Since 1987, I have rallied to an 
alternative, the broader and bigger- 
flowered Snow White (its elderly 
raiser kindly wrote to me when last 
I allndpd to it in the FT). 


One or two branches have died 
back since then, but I continue to 
thi nk it the most under- rated of the 
hardy forms - and if you saw it 
right now, you could only agree. 
The petals fall nightly from the 
passing flowers but buds keep on 
opening and the entire plant now 
has a spread of 6ft without any sign 
of distress. 

Surprisingly few nurseries either 
list or know it. Hunt out those 
which the The Plant Finder recog- 
nises and then propagate Snow 
White from cuttings; they root with 
wonderful ease. 


Fishing/Tom Fort 

A glorious evening 
of sedge frenzy 



FT Ski Expedition /Amie Wilson 

Chile slow 


R eaders with reten- 
tive memories may 
recall an account I 
gave last summer of 
a week-long trip to Ireland 
which was attended by bad 
weather on an almost biblical 
scale. The experience of hav- 
ing my campaign against 
salmon and trout reduced to 
grim force by flood and tem- 
pest compelled a reassessment 
Last year's weakness might 
have been an excess of plan- 
ning. This time, I kept my 
options open until word 
reached me that the summer 
salmon were running in the 
Blackwater. 

A glance over the bridge at 
Mallow gave the first hint that 
the tactics might be flawed. 
Twelve months before, the 
Blackwater bad been in foam- 
ing flood. Now it was a gentle 
and snspiciously shrunken 
stream. Where, 1 demanded of 
Frank, who guards and cher- 
ishes the fishing at Killavullen 
- was the water? And the 
salmon? 

His sorrowful face told the 
whole wretched story of the 
damnable lottery that is 
salmon fishing. It was now 
Monday. The previous Tuesday 
a steady rise in the water had 
brought the flsh up in nnm- 


Con tinned from Page X 


other commissioners. 

With the aid of Lamy and the 
other members of his cabinet - 
who were brilliant, dedicated 
and capable of ruthless&ess - 
Defers created a pyramidal 
structure, with himself at the 
summit. Many of the other 
commissioners were sidelined, 
while Defers installed loyal 
friends - members of the 
"Defers network” - in key 
posts. 

To win arguments against 
commissioners such as Sir 
Leon Brittan. Defers' staff 
sometimes used dubious meth- 
ods. such as editing or even 
rewriting the minutes of com- 
mission meetings. 

In October 1987 Defers told 
the European Parliament that 
America would let the dollar 
fall to DMl.60. The dollar 
dipped two pfennigs and sev- 
eral finance ministers rebuked 
Defers for speaking out of turn- 

Lamy told journalists that 


here. Frank had six one day, 
seven the next By Friday the 
level was dropping and the 
salmon had speeded upstream. 
By the time we - my Irish 
companion, Nlall, and I - 
arrived, the situation was 
hopeless. 

It was Frank’s opinion, 
offered to the accompaniment 



of violent profanity, that there 
was not a single salmon resi- 
dent on the fishery. 

We decided to hold a 
high-level pow-wow, concen- 
trating on the kernel of the 
problem. This, as ever, was the 
weather, which was glorious. 
The sun was beating down, 
and the Blackwater seemed to 
be evaporating before our 
eyes. Our thoughts turned 
from the unreliable salmon to 


the president bad been mis- 
quoted and sent a member of 
the cabinet to the parliament's 
office. The envoy found the 
official who was editing the 
report of that day’s proceed- 
ings and bullied him into delet- 
ing the offending words. The 
report had been printed when 
Lord Plumb, the parliament's 
president discovered the ruse. 
He had the report pulped and 
then reprinted with Defers' 
true wonls - 

By the end of Defers’ reign, 
his authoritarian ma n agem ent 
style had created as many 
problems as it had solved. His 
network's huge influence 
undermined the commission's 
traditional chains of command, 
and especially the role of the 
directons-general, the top tier 
of officials. The regime's 
excesses banned the morale of 


the trout of Ireland's finest 
trout river, the Sufcr, no more 
than an hour’s drive away. 

Next morning found us in 
the pleasing town of Cahir, 
across in County Tipperary. 
We were in a little shop up the 
hill from the famous Norman 
castle, buying files at a furious 
rate from a woman called 
Alice Comba. She is quite the 
most artistic dresser of flies 1 
have come across in many a 
year, and her premises In Old 
Church Street are well worth a 
visit, if you have the good for- 
tune to be in that lovely part 
of the world. 

We knew that our best 
chance would be during the 
evening. By 8.30pm we had 
feasted in a smart new restau- 
rant in the town square, and 
were tackling up beside the 
broad, well-loved waters at 
Swiss Cottage, just down- 
stream from Cahir. It and 15 
miles of the Suir are con- 
trolled by the Cahir Anglers, a 
day ticket from Miss Comba 
costs £8, a season’s permit just 
£13. 

I waded across the stream, 
went down a couple of fields, 
and fished up a long, deep pool 
towards a weir. The air was 


many 

Defers and Lamy justified 
their strong-arm tactics with 
the argument that, in such a 
cre aking and ramshackle 
bureaucracy, there was no 
other way to get things done. 
However they never attempted 


a fundamental reform of that 
bureaucracy's failings. 

Defers has always found 
ideas and policy more interest- 
ing than administration. £Uq 
departure at the end of this 
year, and the inevitable wlther- 


to pick at a hatch of olives. 
But they were as fastidious as 
ever, ami as I neared the top of 
the pool, I stifl had not man- 
aged to fool one. 

Then I saw a clumsy, flutter- 
ing movement at the surface, 
and an eager pounce from a 
fish. It was a sedge, and 
within minutes, multitudes of 

these unprepossessing insects 
were appearing all over the 
river, and the trout were going 

wail. 

There is nothing in trout 
fishing to beat the excitement 
of an evening sedge hatch, and 
it was years since I bad experi- 
enced one. Something about 
the motion of the creature as 
it careers across the top In its 
efforts to gain flight induces 
abandon in even the most 


ing of his network, will deprive 
the commission of its spine - 
and leave management prob- 
lems for his successor. 

Defers’ tactical skill began to 
desert him in the 1990s. He 
became over-confident and 
appeared too ambitious on 


behalf of the commission. By 
1991, the year of the inter-gov- 
ernmental conferences, the 
commission's growing power - 
and the perception that Defers 
wanted even more for it - had 
irked several gove rnments. 


selective fish. The rises are 
slashing and savage and the 
river that velvet June night 
boiled with the feeding frenzy. 

Normally, in such circum- 
stances, I lose my head and 
fall in, or lose my flies, or 
break my cast This time I 
remained comparatively calm, 
and one of Miss Comba’s sedge 
patterns did the rest By the 
time I bumped into Niall, I had 
caught seven. None was vast 
but they fought like demons. 
He, a much more accomplished 
fisher than I, had simply lost 
count of his battles. 

On the bank, witnessing our 
endeavonrs, was a curious lit- 
tle Cahir man. He rebuked me 
sternly after I had waded 
harir, telling me that I could 
have fallen into a hole and 


Defers’ draft treaty for politi- 
cal union proved too federalist 
particularly in the large role it 
proposed for the commission in 
foreign policy, to have any 
impact other than to annoy 
governments. Defers had 
become too wrapped in the 
logic of the EC’s institutional 
mechanisms. 

In common with many 
national politicians. Defers had 
failed to see that a large part of 
public opinion understood nei- 
ther the Community nor what 
he was trying to achieve. 
Hence his surprise when, after 
Denmark’s Nej to Maastricht 
in June 1992, popular senti- 
ment in Britain. France and 
Germany turned against the 
EC, the commission and him- 
self 

In the coming decades, the 
debate about the future of 


been swept away. A friend of 
his, he said, had a narrow 
escape a couple of nights 
before. 

I asked h™ what Hud hap- 
pened. It seemed that this 
friend bad borrowed the reins 
off my informant's horse, say- 
ing he wanted to poll a tree 
out of the water. He had tied a 
grappling book to one end of 
the rope, and the other end to 
his leg. Throwing the hook 
around the tree, he had 
attempted to walk the tree out 
of the water, fallen headlong, 
and been “near drownded". 

Unable to see the relevance 
of this incident to my own 
case, we bade farewell to the 
little man and left the river, 
exhilarated. It had been a 
memorable night 


Europe will be defined by the 
opposing ideas of Defers and 
Thatcher. Her side wants only 
a confederation of free-trading 
nation states. Delorists will 
argue that European countries 
have enough in common In 
their history, culture and val- 
ues to make it worth pooling 
their economic, iHpInwatin and 

military resources into a union 
that can hold its own with the 
superpowers. 

Defers has turned the Com- 
munity into a powerful entity 
which threatens national offi- 
cials, p arliamwitariaTm and 

ministers. It also frightens 
many citizens. Thanks to 
Defers, public opinion has 
become, for the first time, a 
crucial factor in the shaping of 
the future of the union - and a 
brake on his own federalist 
designs. 

■ Charles Grant works for The 
Economist He is the author of 
Defers*. Inside The House That 
Jacques Built, published by 
Nicholas Brealey. 112.99. 


to get 

Amie Wilson and Lucy Dicker 
an trying to ski every day of 
1994 on a round-the-world expe- 
dition. This week they arrived 
in QrQe. 

A rriving in Chile, 
winter seemed far 
away. It was If Por- 
tillo, one of the 
highest and most famous ski 
resorts in South America, was 
reluctant to be stirred from 
hibernation. 

Just 48 hours earlier we had 
been baking in the heat of the 
Mojave desert in California - 
and the temperatures in the 
Andes would not have been 
out of place in the Californian 
summer. 

Recently, in the northern 
hemisphere, we have seen 
many ski resorts “put to bed" 
for the summer, bat this is the 
first time we have seen one 
being woken np for the winter. 

In spite erf 1 being surrounded 
by peaks of 19,000ft and more. 
Portillo, close to Argentina, 
was still hi its summer slum- 
ber. 

Lucy and L on the other 
band, although anxious to ski, 
were keen to hang on to what 
was left of our brief summer. 
We were rewarded with a 
blue-sky day and a powerful 
sun which glittered on the icy 
and almost bottomless waters 
of the Laguna del Inca just 
outside our chalet 
David Purcell and his 
brother Henry, both originally 
from New York, had been 
praying for a heavy snowfall 
so that they could open Por- 
tillo on time. And the follow- 
ing day, a leaden sky might 
have given them cause to 
cheer. But David Purcell did 
not like what he saw. 

“High overcast," he said. 
“That's exactly what we don't 
want We need either snow or 
dear blue sides so it gets cold 
enough to make snow. When 
it’s like this it doesn't snow 
and we can't make snow 
either. Some resorts would 
open with the snow we already 
have, bat we’d rather wait" 
Open or not Henry, who has 
been in charge at Portillo 
since 1968, was kind enough to 
run one of the chairlifts just 
for Lucy and me so that we 
could sld our compulsory daily 
run. He and his daughter Elisa 
even kept us company, while 


chilly 

his black labrador Sally 
romped down the slope with 
ns. 

Then the prayed-for snow 
started falling with a ven- 
geance, completely contradict- 
ing the weather forecast Ten- 
tatively, the Purcells opened a 
single Poma lift 
After stagnating with mini- 
mal skiing for 8% days, Lucy 
and I were even more boister- 
ous than Sally. We skied 
relentlessly through foiling 
snow until the lilt closed. 

I expected to feel dismay at 


This is the first 
resort we have 
seen being woken 
up for the winter 


being plunged back into win- 
ter again so soon, but the 
familiar feeling of warm blood 
tingling in my veins on a cold 
day, and the sharp Intake of 
mountain air, came as a pleas- 
antly invigorating surprise. 

Now we are looking forward 
to trying the rest of Portillo’s 
lifts, including the unique Va 
et Vient lifts, Rocas Jack and 
Condor, specially designed for 
inaccessible, avalanche-prone 
terrain, and skiing some of 
Chile's steepest slopes - with 
the possible exception of the 
Kilometre Lanzado, on which 
French Olympic champion 
Michael Prufer skied at 
135.264mph. 

This is a wild, windswept 
place. And much as we miss 
the Californian summer, we 
are glad to be here. 


GARDENING 


J " " V, 

Classic IRps’es 

BY PETER REALES 
The largest coUectloa at genuine old 
roses embracing shrubs, climbers, 
ramblers and the best of recoil times. 

I Over 250 of which arc omipia id us. 

Ail described in am free, 
fnH CfltthgB C i 

PETER BEALES ROSES (FD 
LONDON ROAD 
ATTLEBOROUGH - NORFOLK 
TEL: WO 45470? 

FAX: 0M3 4HS45 


balmy and. as the son sank in 
an amber sky, the trout began 


The union Jacques 


Deters draft treaty for political union 
proved too federalist , particularly 
in the large role it proposed for 
the commission in foreign policy 




XIV WEEKEND FT 


FINANCIAL 





SPORT: WORLD CUP ’94 


Turn on, 
tune in, 
and marvel 
with Motson 

Britain s TV audience is being served a 
World Cup mixture of thrills and 
banality 9 says Peter Aspden 

at There comes a little desire to wander into their oppo 
turning-point in every nents' half. 

World Cup when Far the most part, comments oi 
events an the pitch strategy and te c hni q ue have bee: 
take on extra simifi- conspicuous by their absence fron 


There comes a 
turning-point in every 
la World Cup when 
JyVjVteta events an the pitch 
>W take on extra signifi- 
cance. It usually happens after the 
opening salvoes have been fired We 
have been introduced to the dramatis 
personae ; we have acclimatised to 
sleepless nights; and we have begun 
to bond with the hapless addicts at 
the other end of the office who also 
remember that Bolivian back-heel 
which led to their third comer of the 

rnateTi 

At this transcendent moment, peo- 
ple who spent the first days of the 
campaign rubbishing soccer find they 
have run out of drchds and quips, and 
start to fflkfl an interest, for even they 
understand that what they are watch- 
ing is powerful drama. 

That moment 1ms arrived early in 
this splendid tournament, with Thurs- 
day’s Italian victory over the charm- 
less Norwegians. The combination of 
a rash piece of goalkeeping and a 
truly courageous piece of manage- 
ment by Arrigo Sacdn brought us the 
first unforgettable icon of USA 94: the 
utterly bewildered face of Italy's 
Roberto Baggio as he trudged off to be 
substituted by Luca MarchegiaiiL 
You had to be there - in front of a 
television screen, that is - to lip-read 
Baggio’s distress: U B rmpazzito?” 
(“Has he gone mad?”). Sacchi stood 
firm. Off went the cherubic Baggio, 
UP went the voice of BSC commenta- 
tor John Motson, and suddenly we 
knew we were in a World Cup. 

These are the games, high in melo- 
drama, low in pure footballing skill, 
which make great television. For the 
truth is that the various pundits 
assembled to provide viewers in 
Britain with “expert” analysis are 
proving as sadly inadequate as ever. 

Reaching a new nadir of banality, 
John Fashanu, who plays for Wimble- 
don in the English Premier league 
and is commentating for ITV, 
revealed plenty about his conception 
of the game during the dosing stages 
of Sweden vs Cameroon, “In the last 
couple of minutes”, said Fash, “we 
have had two substitutions; both of 
them are 6ft 2in, so neither side obvi- 
ously wants to settle for a draw.” 

Tell that to the “Norwegian Ever- 
ests" (La Gazzetta deUo Sport). Nor- 
way are one of the tallest tides in tire 
c om petition, but have so far displayed 


little desire to wander into their oppo- 
nents' half 

For the most part, comments on 
strategy and technique have been 
conspicuous by their absence from 
British screens. Tactics? Who needs 
them when yon have Ron Atkinson, 
manager of Aston Villa, around? Ran, 
never one to lose hims elf in theory, 
has become a master of psycho-foot- 
ball, the g ?me that is played entirely 
in the bead. 

Halfway through Germany vs 
Spain, he could bear it no longer. 
“You also - 1 don't know if it’s my 
imagination - get the impression 
about that mental thing ..." - this in 
response to the hitherto impressive 
S panis h side having had a quiet five 
minutes. 

“That mental thing ” is pundit-short- 
hand for letting us know that every 
side from south of the Alps - or 
Texas, for that matter - contains far 
too many fanny merchants 

who would prefer to be in mid-siesta 
than in midfield where they might be 
called on to turn over a bunch of 
strapping Teutons. 

On camp Germany's Rudi Voefler, 
the “old fox", in what was “a psycho- 
logical substitution”. Like a work of 
L8th century empirical philosophy, all 
was in the mind now. “You get the 
impression that all the belief is with 
the Germans” - a quasi- theological 
pearl that warned us what to expect 
The Spanish dominated the rest of the 
gamp and Germany played their poor- 
est football of the tournament 

T he team with the most legiti- 
mate claim to experiencing 
unbearable mental pressure 
have provided the saddest story of the 
week. Colombia had to pull their mid- 
field player Gabriel Gomez out of 
their match against the US at the last 
minute after he had received death 
threats against his family. 

On tiie field, the Colombians looked 
ever more ineffectual as they ran 
their pretty triangles into the thump- 
ing tackles of Alexi Lalas and Marcelo 
Balboa. As they left the field at half- 
time, the Colombians would have 
seen a scoreboard which read: “Esco- 
bar, own goal", which probably told 
them more than they needed to know 
about their homeland. 

Lalas and Balboa (wasn’t that 
Rocky’s surname?) looked stronger 
and stronger as the match went on. 



Lalas, variously referred to as “the 
rock-and-roller", "the gypsy” and 
“Catweazle”. looks one of the best 
defenders in the world on current 
form - smart money sees him in the 
Premier league next season - while 
Balboa came within an inch of scor- 
ing the goal of this or any World Cup 
with a stupendous overhead lock. 

At the other end, goalkeeper Tony 
Meola, who wants to be an actor, 
glanced at the TV camera behind the 
goal and crossed himself in mock 
incredulity. The Americans, having 
seen their basketball championship 
settled on Thursday, can now turn 
their attention to the less serious 
business of watching their soccer 
players knock the stuffing out of 
some of the world's greatest teams. 

Through a combination of Wimble- 


don, short-sightedness and long, bitter 
memories, we were denied the oppor- 
tunity of watching live what was 
surely one of the biggest stories of the 
first World Cup week - the extraordi- 
nary return of Argentina's Diego 
Armando Maradona, perhaps the only 
man, along with Pete of Brazil, to 
have earned the right to be called a 
football genius. 

This mere fact was not enough to 
sway Britain’s terrestrial TV chan- 
nels, which had already decided that 
an ageing, overweight cheat with a 
drug problem could not possibly play 
a decisive role in such a wholesome 
sporting event 

They should think again. Maradon- 
a's body is so battered that he is liter- 
ally frightened to shoot, in case the 
force required causes him serious 


injury. But against Greece, he saw an 
opening and could not resist it. 
Curled into the top corner, it was the 
most precisely-hit shot of the week. 

Maradona’s sprint to the camera 
and Munch-like scream into the lens 
let out four years of fury and resent- 
ment. BBC link-man Bob Wilson 
found it unsavoury. Maradona him- 
self, watching a playback, thought it 
was “very beautiful”. 

Surrounded by loyal lieutenants 
who can move the ball with bewitch- 
ing speed, and looking significantly 
fitter than he did in Italy (bur years 
ago, Maradona is set to have a final 
fling with the talent which stubbornly 
refuses to desert him. He has already 
won a World Cup single-handed, but 
will not rest on the memory. It’s that 
mental thing 


W hy do L a good, young, 
upstanding American, 
play soccer and not 
American football, bas- 
ketball or baseball? The question had 
never crossed my mind before it was 
announced that the soccer World Cup 
would be played cm American soft. 

As soon as I beard the news I was 
ecstatic, but confused. How could soc- 
cer’s most prestigious tournament be 
played where football, baseball and 
basketball reigned supreme; where 
soccer bad not even been televised on 
the four major networks; and where 
anyone who wants to watch a soccer 
game either has to listen to a com- 
mentary on a cable station - probably 
m a different language - or go and 
watch a college match, at times possi- 
bly the most embarrassing athletic 
vision the US has to offer? 

My feeling is that it was the sub- 
urbs and the bn mi g rant communities 
around the country that helped create 
the impression of some interest in 


A new generation wooed by skill 


soccer. But one thing was certain, I 
thought it was not people like me 
who caused Fife, the sport’s govern- 
ing body, to choose America as home 
for the 1994 World Cup. 

I have been playing soccer since I 
was six years old and, since every- 
thing back then had to revolve 
around me, I naturally assumed that 
just about everybody played soccer. 
Now that I am in high school, it is 
pretty obvious that I am in quite a 

qitiftTl 7TiTT>f> rvi y 

This must have something to do 
with the availability of soccer equip- 
ment in New York City. For a pick-up 
game of American football in the 
park, all you need is six kids, a foot- 
ball and something to mark the end 
zone. Soccer needs a ball, at least 10 
kids - and two goals. 

Now, some of the suburbs and areas 
with heavy immigrant populati ons do 
have pitches and goal-posts marked 
out, but not the New York City parks 
Z know. So soccer is almost destined 


to fetter in the cities, though there are 
a few of us who keep the game alive 
in urban areas. 

In New York, the football and soc- 
cer seasons overlap, which forces 
choice on anybody who wants to play 

Robbie Walther, 15 , 
plays soccer for 
Dalton School in New 

York City. He says 
that doesn't make him 
a wimp 

both. I tried football, but once I had 
experienced the joys of a sport in 
which it takes 30 minutes to put on 
pads to play for another 30 minutes 
without ever actually touching the 
ball with hand or feet (I was big 
enough to play in the line), 1 lost my 


taste for it When I said as much to 
the football coach, he reprimanded me 
with words that not only told me he 
liked anchovy pizza but also that he 
thought I was a wimp. I was nudged 
towards soccer. 

If the football coach started me 
playing, I have stayed with soccer 
because it is different and I love it It 
does not Involve my hands or brawn 
but it does involve my feet and brain 
(speed helps, too). There is no other 
sport in the world that allows the feet 
(and sometimes the head) to do the 
scoring. So, a country where men like 
Michael Jordan, Magic Johnson, Joe 
Montana and Lawrence Taylor are 
labelled as superior athletes has yet 
to produce a soccer superstar like 
Feld, just about the only soccer player 
anybody has ever heard of. 

Other kids my age have not been so 
lucky to have soccer's history and tra- 
ditions explained to thwn, and it is 
hard for them to learn about the 
game. 


Most start not by playing it but 
through television. And here’s some- 
thing interesting: we can now see TV 
commercials that use soccer to sell a 
product - for example, Snickers 
candy, in which a man is shown jug- 
gling a soccer balL 

The target of this commercial is 
children, which tells me that the 
advertising people have worked out 
that soccer just might be bigger 
among kids than they had though t 
Now we have reports that an right- 
team American soccer league might 
be formed. 

On reflection, maybe America got 
the World Cup not just because its 
government put in the highest tad but 
because of people like me, who live in 
big cities, as well as the suburbanites 
and the immigrants. 

I guess Fife saw that America could 
become a great soccer-playing nation, 
and how much my generation needed 
a new pastime. Perhaps we are really 
on our way. 


i 

Nigeria ‘not afraid 1 of 1 
born-again Maradona 


Nigeria, who meet Argentina 

in Boston today following 

a 3-0 win in thtSr World Cup 

debut against Bulgaria, say 

they are not afraid of 
Argentina’s rehabilitated 
star. Diego Maradona. 

“Maradona is a respected 
player.” said Nigeria's Dutch 


QWOUFA 

SwftMrtam* 

US* 


“We respect him, but we are 
not afraid of him.” 

Both teams won their 

opening games and know 

they have relatively weak 
opponents In their last 
games, so today's Group D 
l^ateh could turn into a 

goal-chasing dash of two 
powerful forward Lines. 

Maradona, the Argentine 

team captain, opened his 
fourth World Cup with a 
brilliant goal that added to 
three by Gabriel Batistuta 
in a 4*0 romp against Greece 
an Tuesday. But he advised 
caution against Nigeria. 

“We have to be very 
careful. The Nigerians are 
extremely fast, and we can’t 
give them a millimeter of 
advantage on the field.” 

Nigerian star Zteshhti 
Yritini. who scored a goal 
against Bulgaria, will 
challenge Maradona for the 
limelight 

Schedules fit 
round duH same 

A summit meeting was 
delayed, streets virtuafiy 
emptied and doctors 
postponed operations 
yesterday as mtifioes of 
Sooth Koreans toned in to 
the country's World Cop 
match against Bolivia, which 
ended In a scoreless draw. 

Sooth Korea had not won 
a game in three previous 
trips to the World Cup fimb, 
and most now beat defending 
champions Germany to 
advance to the second round. 

President Kim Yonnrsau. 
an ardent soccer fen, and 
vtstting Thai Prime Mhristar 
Oman Leokpai. met SB 
minutes fatter than scheduled 
so that tiny ceoM watch the 
telecast, the presidential 
office odd. 

Kbn lamented South 
Korea's missed opportunities 
in the last minutes, bat later 
called national team coach 
Kim Ho to voice 
encouragement 1 want to 
cheer the playm for doing 
their best If Spain can tie 
Germany, we aho can put 

op a good fight against 

Germans,” the president was 
quoted assaying. 

News reports said s u r geo ns 
at the Korea University 
hospital in Seoul rearranged 
their operating schedule so 
they could watch the match. 

Cypriot TV 
an ad-free zone 

Advertisers in Cyprus have 
withdrawn TV commercials 
aired during World Cup 
games after protests by fens. 
State-run Cyprus Television 
said it had received hundreds 
of calls from viewers 


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1.0 O t fJP - 

T7S$j$ 

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complaining that ttte*ra« — 
while the gam— tew tte * 
were too dhtrastfag, 

Utters hi tool Ww p qiBi 
demanded pan— f 
Intervention to stop tita 
c omme rcial banks 
Cooa-Coi* and brewer* 
Carisberf and Kao. CSpfnrt 
trading spoaaan of fire 
coverage. tafcl the 
ceuasaretoto wffi vnr air 
only at fcafetfeM and at the 
start and and af gtonaa. 

Cofombian* trip 
tip tipster 

Batttar wire, my strategy 
ot ba cking Sooth American 
teams haa hem rocked, but 
not wrecked, by CokoabU's 
gntiess performance and 
(afaaoat certain) atimtaatioo. 
write Jflcfaai 
Ptoano»yNbiL They were 
my big winner*. After 
Romania beat them, I took 
an other wr o ng step by 
betting £10 each way on 
Romania at M-l (£10 to win 
at SM and £10, at baftodds, 
to reach fie Anal). 

My other bets - Brazil ($-1) 
and Argentina (9-1) - could 
still show a small overall 
profit, which means that the 
time to pump op the veto* 
fefest Approaching. 

ffBraxQand Argentina 
wta thafr first-round groups, 
they will not meet before the 
final (assuming they 
survive). But so greedy are 
Britain’s bookmakers that 
Brazil have been dipped to 
94. XT Romania are 
eliminated, my co mbi ned 
looses cm them and Columbia 
win total S3 per cent of my 
stakes to date - a disgraceful 
position to beta. 

For my next trick, I will 
probably quadruple my £*Q 
bet on the Argies, but not 
until they have played 
Nigeria. Coolness is required. 
It Is what the booUes dread. 


A 


De 


■ Remaining flrst-rmmd schwduto 


On* 

Group 

Vanoa 

Ttomr 

NMah 

Today 

F 

F 

□ 

Odando 

Now Jonty 
Boston 

SJOpm 

630pm 

8.00pm 

Belgium w HaBand 
a. Arabia va Morocco 

AipanSrta w Nfgnria 

Ttmnovr 

D 

Chicago 

5,30pm 

Bulgaria vs Gmao* 


A 

Lm Angetea 

030pm 

US vs Romania 


A 

San Franciaoa 

Linn 

OMtbWndvaQoiQnMa 


TuMSa/6 E 

Naw Jaraay 

SAOpm 

Mhmd vs Norawy 

E 

Washington 

CJOpm 

tatyvs Maaloa 

B 

Son Ftancteco 

9.00pm 

Ruaate va Camareon 

B 

Detroit 

9.00pm 

Brad *a Swndan 



"BritMi StTOlMfUm* 


The <*an«r-8ruto w« bo piayod on ffw watfcnnd of Jtfy 9 - 1 Q. m Boaton. Dtte. 

on VMGnaaday, Jtiy 13 tN*w Vork md Lob 
A ngakMfc and tM Anri on Sunday, July i7 (Lon AnjggSaaJ. 



We've had plenty of 
practice for the World Cup. 
It was a little event called 
the Olympics. 








SPORT AND MOTORING 



Wimbledon/ John Barrett 


Delay the funeral, tennis is alive and well 


T he first week of 
Wimbledon's 108th 
tournament has pro- 
duced so much excite- 
ment and good te nnis that 
rumours of the sport's immi- 
nent demise seem decidedly 
premature. A heady mixture of 
nostalgia, emotion and raw- 
blooded athletic endeavour has 
given us entertainment of a 
high order. 

Rod Laver, the 53-year-old 
Australian who was a four- 
time singles champion at 
Wimbledon, provided the nos- 
talgia on the opening day. 

The red-haired left-hander, 
looking slim and fit. received a 
tremendous ovation when the 
Duke of Kent, president of the 
All England Club, presented 
him with a piece of Waterford 
crystal to commemorate the 
silver jubilee of his unique sec- 
ond grand slam in 1969. 

Following the ceremony, it 
was appropriate that the world 
No 1, Pete Sampras, who had 
idolised Laver when growing 


up in California, should have 
opened the Centre Court pro- 
gramme. A convincing win 
against Jared Palmer, his 
neighbour In Tampa, Florida, 
suggested that anyone with 
pretentions to Sampras's title 
will have to produce something 
very special. 

The emotion belonged to 37- 
year-old Martina Navratilova. 
Her arrival on the Centre 
Court was greeted with raptur- 
ous enthusiasm by the assem- 
bled crowd, who gave the nine- 
times champion a lengthy 
standing ovation that brought 
a lump to the throat 

In my 48 years of visiting 
Wimbledon, I have never seen 
anything like it Fortunately, 
Martina was not too much 
affected by the occasion and 
saw off the challenge of the 
British girl Claire Taylor with- 
out fuss. 

The opening day had offered 
no clue about the drama that 
lay ahead. True, Cedric Pioline, 
the No 13 seed from France. 


went out, but that was not 
unexpected on grass. 

Suddenly, on Tuesday, the 
drama began. On the Centre 
Court, Steffi Graf, Germany's 
five-time champion, the over- 
whelming favourite to retain 
her title, crashed out 7-5 7-6 to 
the 30-year-old black American. 
Lori McNeil. 

As if in sympathy with her 
legion of tearful fans, the gods 
wept. This was the biggest 
upset in the history of Wimble- 
don. Never before has a defend- 
ing champ ion lost her title in 
the first round. 

The doom-laden skies cre- 
ated a Wagnerian atmosphere. 
In a match played in three 
rain-interrupted stanzas, 
McNeil played glorious attack- 
ing tennis at the net to reveal 
the shortcomings in the cham- 
pion’s game. 

In strong, gusty wind, Grafs 
high ball-toss on serve was a 
liability. On the still sappy 
grass, the sliced backhand 
approaches of McNeil, skidding 


through fast and low towards 
her opponent's vulnerable 
backhand wing, were superbly 
effective. Even Grafs famous 
forehand only worked intermit- 
tently. 

It was obvious that the 
champion's confidence, dented 
by a recent lose to Sanchez- 
Vicario in Hamburg when she 
had held match points, and 


another to Mary Pierce in 
Paris, was stm damaged 

Before they started McNeil, 
who had beaten Graf once 
before - two years ago, in the 
first round of the Virginia 
Slims - said she fancied her 
chance in a first meeting on 
grass. How magnificently she 
took it 

Mc Neil is the product of 
John Wllkerson's public parks 


programme in Houston which 
also discovered Lori’s one-time 
doubles partner, Zina Garrison. 
By coincidence, it was Garri- 
son who inflicted humiliation 
on Graf when she beat the Ger- 
man en route to the final at 
Wimbledon in 1900. 

Grafs unexpected departure 
left a gaping hole in the draw. 
The other seeds in the top half 


responded wed Conchita Mar- 
tinez (3), Kiraikn Date (6) and 
even Argentina's fallen angel. 
Gabriela Sabatini (10), started 
playing with renewed enthusi- 
asm. 

So did some of the unseeded 
women, such as the East- 
bourne winner, Meredith 
McGrath. Her meeting with 
Kahatini was the Hi g hli g ht of 
the third round. Life was not 


so easy for McNeil. Reacting 
from her sensational win, she 
struggled to beat Tone Kamto 
of Japan, but at least she sur- 
vived. 

Meanwhile, there was tur- 
moil among the men's seeds. In 
the coarse of four days seven 
disappeared before the third 
round. Including two former 
champions, Michael Stich (2) 
and Stefan Edberg (3). 

This year Stich lost in the 
first round in Australia to 
Malavai Washington and in the 
second round in Paris to Aron 
EridksteuL The brittle German 
had his cup of g rand-slam mis- 
ery fined to overflowing when 
he was beaten in a delayed 
first-round match by Bryan 
Shelton, another black Ameri- 
can. At this rate, Stich will 
soon lose his No 2 world rank- 
ing. 

The present world No 3, 
Stefan Edberg, is unlikely to be 
the man to overtake Hir p„ 
Looking vulnerable on serve 
from the start, the 28-year-old 


Swede was beaten in five rous- 
ing sets by gawiaft Carfegp 
after leading by two sets to 
one. 

Thursday produced two mag- 
nificent encounters. In the 
first, the French Open cham- 
pion. Sergl Brugnera of Spain, 
beat Australia’s big hope, Pat- 
rick Raftovm a five-set mara- 
thon on Court No L 


was a joyous and skilful occa- 
sion, not least because the two 
combatants, old friends and 
rivals, displayed a chivalry 
that is rare these days: Here 
were two men giving every- 
thing but still able to take joy 
from their opp o ne n t's winners, 
ft left you fedtagupHfted. 

" How stirring, too. that last 
year's fine performances from 


Brugnera prefers day courts the British men were repeated, 
and has not played bene for' this time by Jeremy Bates and 
three years, but te adapted to . Chris Wilkinson. At 81, Bates 
the different demands of grass is perf ormin g as well as ever, 
with the skill of a natural com- PtebaiK the responsibilities of 
petitor. fatherhood were what he 

Seine Of his acutely-angled needed to give him stability 
touch volleys were a joy and a nd m aturity, 
his ground strokes, fizzing .. Wfikinson, who reached the 
with tnpspin, mad life at the third round last year* is 
net imeomfortabi* for the . relieved to .be playing at all 
game Australian. . . . after enduring one of those 

How nice it Was to see artis- ' fru s tra ti ng injury spells - in 
tic French lefthander Guy For- his case a terrienritis of the 
get restored to fitness after a wrist - that so often end the 
year away following operations careers of premising athletes, 
on a knee. It has been a good week for 

His fireset win against last Whnblecknr and for tennis, 
year's finalist, Jim- Courier, Postpone the ftmeraL 


Turmoil among the mens seeds is 
one of this year's features 


A s he stood in the Sor- 
bonne this week, paying 
homage to the efforts of 
Baron Pierre de Couber- 
tin in 1894 to revive the Olympic 
Games, Joan Antonio Samaranch, 
president of the International 
Olympic Committee, most have felt 
a sense of irony. 

When de Coobertin’s invitees met 
ZOO years ago, in the Salle Octave 
Greard at the university, the young 
French aristocrat sought to nuke 
his tiny committee internationally 
powerful. Today, Samaranch is 
struggling to find ways to make his 
powerful group smaller. 

De Coubertin would have made a 
superb lobbyist in any modern 
democracy. In spite of a bizarre 
appearance - he grew a wide, 
feathery moustache - the baron 
was worldly enough to have a 
hand-picked group of powerful 
sympathisers who attracted public 
attention. 

By June 1894, after 10 years of 
effort, de Coubertin had hustled 
enough support in French public 


Olympic politics/Keith Wheatley 


Why small is beautiful 


life to organise his Sortxrane Con- 
gress, at which the rebirth of the 
Olympics was formally discussed. 
There were 2,000 guests at the 
opening banquet, with athletes' 
representatives from 12 countries. 

Throughout the Congress, de 
Coubertin staged fete after fete - 
including night foot-races and fenc- 
ing matches in a Parisian playing 
field lit by 1,000 torches. Trumpet 
fanfares, military music and fire- 
works rounded off the events. 

The main principles of the Olym- 
pics were approved almost without 
debate, de Coubertin said. These 
were: four-year intervals between 
Games, modern sports, no chil- 
dren's contests, different sites for 
each Olympics and a stable IOC. It 


is remarkable how these principles 
have endured, in spite of develop- 
ments such as television and spon- 
sorship. 

Earlier this year, Samaranch 
wrote privately to each IOC mem- 
ber asking for views on two sub- 
jects: fixed rather than lifetime 
membership and the involvement 
of presidents of individual sports 
federations as temporary members 
during their terms of office. 

So far, 52 have replied - a little 
more than half. Samaranch is 
looking for a reform consensus he 
can bring to the August Congress 
of the Olympic movement - the 
first since Baden-Baden in 1981 - 
but, as one IOC insider put it, “ask- 
ing members to support fixed terms 


is tike getting turkeys to vote for 
ChxistioasT. 

One tactic that Samsranrfi and 
his executive board seem to be 
employing, perhaps to show the 
IOC the dangers of atrophy, is not 
replacing members who die or 
reach mandatory retirement age. 

No new members have been 
elected for over two years. And the 
Lausanne headquarters of the IOC 
has made no commitment to elec- 
tions at the congress. Countries 
such as the UK, Italy and the US, 
which have previously had two 
members (as a recognition of hav- 
ing bold the Games) now have one, 
simply through non-replacement 

Possibly, Bri tain is in the most 
curious position of all. Having 


fought hard in the last five years or 
so, in concert with other Europeans 
and Americans, against the increas- 
ing Latin-American domination of 
the IOC voting process, the country 
that gave most to de Coubertin's 
vision of modem athleticism is now 
becoming marginalised. 

Princess Anne is the sole current 
UK member, but her position and 
other commitments make it impos- 
sible for her to become completely 
involved in the Machiavellian and 
high-stakes world of international 
sports politics. 

Sebastian Coe, the Olympic gold- 
medal runner turned Tory MP, and 
Craig Reedie, chairman of the Brit- 
ish Olympic Association, are the 
candidates to fill the IOC vacancy 


created by the mandatary retire- 
ment of Dame Mary Glen 

Coe is much Uked by Samaranch, 
who appointed him a member of 
the Athletes Commission and - 
notoriously - gave him a personal, 
invitation to compete in Seoul after 
the middle-distance runner had 
failed to qualify for the British 
team. Reedie, a farmer president of 
the Badminton federation, is wen- 
connected in the top echelons of 
sport and would quickly become a 
force for common smite and less 
grandeur within the IOC. 

Both men are the type the IOC' 
needs to embrace if it is to renew 
itself for the amting 100 years. Bid 
the “recruitment freeze” - based 
around the Samaranch pwsrfnw to 


reform and tighten the movement - 
means neither will hare an oppor- 
tunity to contribute. ■ 

Zn the U8," a similar problem sur- 
rounds tiie vacancy created by the 
resignation from the committee - 
■ two years ago of the disgraced Bob- 
art Heinrich: The obvious candi- 
date, Peter Ueberroth, maestro of 
the Los Angeles .Olympics, has 
mucE to co nt rtb nte tat teems to 
have tiftie chance of joining the 
IOC. - • 

There is always friction' between 
a host city and the Olympic com- 
mittee in tile frantic couple of years 
before a Games. However, relations 
between Atlanta and Inmanne are 
unusually frosty, with some senior 
IOC figures beginning to wonder if 
it. was not a. terrible mistake to 
award the games to'that city. 

Some of those difficulties - 
which are likely to get worse in the 
two years left before the 1996 
Games -r might have been avoided 
if the Olympic experience Ueber- 
roth garnered in Los Angeles , in 
1984 were available within the IOC. 


Motoring/ Stuart Marshall 

The car substitute 


with a wiggle 


W ill the new wave 
of multi-purpose 
vehicles (MFVs), 
such as the Peug- 
eot 806 1 wro te about last week, 
put a stop to the growth of on/ 
off-road 4x4 sales? 

I suspect so. But Land Rover 
most definitely hopes not all 
its eggs are in one massive, 
permanently four-wheel-driven 
basket. It foUows that any 
move in life-style aspirations 
away from wared cotton jack- 
ets, green wellies, jodhpurs 
and knobbly tyres would be 
bad news. 

Ask typical urban or subur- 
ban owners why they chose 
this sort of vehicle instead of a 
normal car and most will 
praise the high seating posi- 


tion and interior space, even 
though this can be more appar- 
ent than real. 

The one thing they never 
mention is cross-country capa- 
bility - because they have no 
intention of leaving the tarmac 
and would not know what to 
do if they did. Thus, the bene- 
fits of the complicated trans- 
mission and high-slung suspen- 
sion designed for off-road work 
are never exploited. 

A much more logical and 
effective form of transport 
would be one of the growing 
band of MPVs, which combine 
lots of interior space with a 
high driving position. But 
when did logic guide car pur- 
chase? So, without taking back 
a word of the above, 1 have to 


say that the Jeep Grand Chero- 
kee 1 drove for a week recently 
was vastly enjoyable to use as 
a car substitute, even if the 
back end sometimes wiggled 
like Marilyn Monroe's. 

The 5.2-litre, 212 horsepower, 
V8-engined Grand Cherokee, 
with four-speed automatic 
transmission and permanently 
engaged four-wheel drive, is as 
American as mom's apple pie. 
Never mmd the little wiggle; it 
is wonderfully comfortable 
because it rides shock-absor- 
bently with finger-light 
steering and has enough power 
and traction to master any 
driving situation. 

It will out-accelerate most 
executive cars and cruise as 
quietly as they do at business 


speaker stereo are part of the' 


i §r^ 



Chrysler Jeep’s Grand Cheratoe V8. Keenly-priced American tunny but not out of place In Europe 


drivers’ speeds on the motor- 
way. It corners capably, with 
no more body roll than most of 
Us kind. While a big car, it 
does not feel intimidatingly 
bulky is narrow country 
and is easy enough to park. 

The soft but supportive seats 


are leather-trimmed and the 
interior is not in the least 
American flash. With its sober 
colours and polished wood 
veneer, I thought the Grand 
Cherokee as understated as a 
quality European car. 

It is Full of electronic novel- 


ties. Display panels tell the 
driver the (fey, date, time and 
outside temperature, when the 
next service is due, and even 
the direction in which they are 

driving. Superefficient air-con- 
ditioning, cruise control, anti- 
lock brakes and a good six- 


Tou cannot expect any hefty 
on/off-roader with an engine 
the size said, power' of tbfe- one 
to be frugal with fud but toe 
Grand Cherokee Is by -. up 
means a heavy drinker. The 
transmission is so eager to' get, 
into the high top gear- that a f 
driver content to Cruise at the 
US legal maximum of 55 or 
GSmph (88 or lQStonh) should 
see well over 20mpg(i4J litres 
per lOOkms) an a journey. _ . 

An enormous, spare wheel 
and tyre takes up about 20 per 
cent of .the load floor but there 
is. stm a lot at room for. lug- ’ 
gage. And roof rack aide-rails, 
which are iraiit .'in, have j 
instantly^adjustabte crossbars ; 
for carrying, things such as 
windsurf boards. • 

At. £27,995, the Grand Chero- 
kee is about £7,000 cheaper, 
than a comparable 'Range 
Rover Vogue , or Mitsubishi ' 
Shogun, but it would look just 
as much, at-home at a smarts 
country occasion. The. snag- & : 
tiiat it only . copies . .^rith : 
left-hand steering, although, 
there are plans to Introduce 
right-hand drive verstons/TJOs 1 
' •} \ 


(part of theChrysler organls 
tionj has hedged its bets. If ti 
trend by then has moved aws 
town on/off-road 4x4s, Chry 
.leiris Voyager MFV will l 
waiting in the wings, comple 
wito rigfrthand steering. 


MOTORS 



Mint. otMoKitton «S3£?^ 

ton d®n*. a Lain* 
Dtaiir ix, r leva 
081 203 isse 


T«l 



XVI WEEKEND FT 


U--UPND MINI? 2S/JUN B 2* WH 
FINANCIAL. TIMES — i 


TRAVEL 


In Megalopolis only the veneer is 



I did not think I would Hke 
Buenos Aires. Everyone I 
met along the way told me I 
would not 

"What’s the point? It's a 
big, modem, noisy city,” said a New 
Yorker I bumped into on a trail in 
the Andes. 

"You want somewhere exotic, 
sensual a dty with palm trees - try 
Rio,” suggested a Norwegian from 
his hammock in the Amazon basin. 

"It is not realty South Ameica at 
all,” said a Parisian I met buying an 
alpaca poncho in an Indian village. 
"You might as well be at home." 

They were right, of course. Bue- 
nos Aires is cosmopolitan, a west- 
ern-style dty with little of the 
allure, the climate, the strange peo- 
ple and odd sights that usually 
attract travellers to South America. 
Why, indeed, go to such a distant 
place only to feel so close to home? 

But my fellow travellers were 
wrong, too. Buenos Aires' first- 
world sophistication on a 
rough-hewn, third-world continent 
is remarkable in itself, and I mAerf 
up liking the city very 
Wild and woolly South America 
ends, and civilised Buenos Aires 
begins, at Tigre, a small Argentine 
town at the confluence of the Uru- 
guay and Parana Rivers. Neath and 
east it is no distance by boat to 
Uruguay and a great spongy river 
delta where channels of water twist 
and braid and maandar off into the 
distanna of a vast fnn ti nant. 

But TIgre is also a city suburb, 
the last station an Buenos Aires* 
northern commuter railway line. 
Just 30km to the south lies the 
heart of a great metropolis of more 
than 12m people. 

Something struck a chord as I sat 
in the Tigre train heading to Bue- 
nos Aires' Retiro station. After 
weeks of Latin American exotica, 
the suburbs of the city, seen 
through a train window, were all so 
familiar and banal that J felt a sense 
of d&d vu. I was on every commuter 
train I had ever taken is every dty 
I had ever lived. 

I recognised those men in suits, 
briefcases in one hand, folded news- 
papers in the other, s tanding on the 
platform at San Isidro station. I 
recognised the dusty plasterers 
waiting at working-class Victoria; 
the rock-music graffiti scrawled on 
the walls at Nunez; the Italian res- 
taurants at Belgrano; the neglected 
houses of the poor at Virreyes; the 
private school children, in caps and 
ties at Olivos; the shopping centre 
at Rivadavia; tire family estate car 
parked outside the phony Tudor 
half-beam house at Vincente Lopez. 


Cosmopolitan Buenos Aires is a city best at remembering the past, says Nicholas Woodsworth 



People in Buenos Aim may mow to norttwm Mg-ctty ihythmi but, teefr Medftunmw iforab— . flwy i 


They were part of my own urban 
life. AH big dty dwellers from the 
west, I knew before 1 arrived, would 
find something of themselves In 
Buenos Aires. Downtown Buenos 
Aires roars, a commotion of people 
in a hxzny. There is a good dose of 
brash energy in the air. 

The city is laid on a grid pattern 
of rectangular blocks. You can look 
far mites down canyons of build- 
ings. Fleets of yellow-and-black 
fenris cruise the avenues, their driv- 
ers as happy to ran you down as 
blink. 

Hot-dog carts dominate busy 
street comers. In the chic Recoleta 
district professional dog-walkers 
trail behind gaggles of canines 
while their owners — thin women of 
impeccable taste - move between 
boutique, private gallery and exclu- 
sive pastry shop. 

All interesting enough, consider- 
ing the continent that surrounds it 


But there are hundreds of such mid- 
dle-class cities about. And, quite 
frankly, there does not seem to be 
much left of the once-touted 
romance of Argentina. 

It has been swallowed in the noise 
and traffic of a megalopolis. The 
days of the gaucho are long gone, as 
are the huge fortunes that were 
made on the pampa through wheat 
and cattle. The {dayboy Argentine 
millionaire with his vast estimtia 
and polo ponies seems to have dis- 
appeared, as have the strains of the 
tango that used to float through 
flanwyhaTfc and the crowded quar- 
ters of the city. 

A brutal military dictatorship, a 
futile war with Britain and a pre- 
occupation with continuing eco- 
nomic crisis seem to have effaced 
much of the distinctive character of 
the city. But Buenos Aires has 
plenty of character, and remains a 
dty lflre no other. It Is a deceptive 


place. It appears, at first glance, 
modern, new-worid, hard-edged. But 
that is only a veneer. Unlike US 
cities, which look to the future, 
Buenos Aires is much better at 
remembering its past 

T his is essentially a 
southern European dty. 
often old-fashioned and 
traditional in outlook. Its 
inhabitants may move to northern 
big-dty rhythms, bat hke their Med- 
iterranean forebears they are gre- 
garious, emotional, leisure-loving 

and aanrimanfal 

Buenos Aires spends much of its 
time recalling its greatest days and. 
still further back, its European ori- 
gins. It is not Hiffarfl y for the visi- 
tor, too, to peel bade the layers of 
the years. 

PorteMos — the city's inhabitants 
- tell you proudly that in the early 
part of this century Agentina was 


I Mntknantal 

one of the Leading economies of the 
world, well ahead of such backwa- 
ters as Canada or Australia. Money 
was no object: anything was possi- 
ble. There Is proof of this even in 
tiie commercial downtown district, 
where, above modern ground-flow 
facades, are bizarre and ornate fol- 
lies imitative of long-gone European 
architectural fads. 

Nor is Buenos Aires' monumental 
architecture any mote firmly rooted 
in the new world. Today the 
grounds around the Paladodd Con- 
gress) - Argentina's national con- 
gress - are shabby and neglected. 
Years of economic decline and vast 
public debt have taken their toll. 

But it does not take much imagi- 
nation to see it as it was! - bronze 
anrt n wrfilf statues reminiscent of 
Rome's, gardens as noble as those 
of Paris, public architecture as 
impairing as Madrid's. Still in mag- 
nificent condition today is the nine- 


story Teatro Colon, imported from 
Europe block by marble block, tile 
by gfit tile, and regarded as one of 
the finest opera houses an yw h ere. 

My favourite old-world haunt, 
though, was the tree-lined Avenida 
de Mayo, designed by Spanish archi- 
tects in the 19th century. Stroll hero 
with etegantlydreesad crowds on « 
balmy January summer evening, 
take coffee in Tortood's wood-pan- 
elled end rodrleatlmr-upholstered 
cafi. and you could not teB that you 
were not on a boulevard in some 
elegant southern European dty. 

If PortsMos placed so much 
importance on things European, it 
is because they never whoQj cut 
their ties, and remained eternal 
immigrants on an essentially for- 
eign continent B e t wee n i860 and 
1S30 6m Europeans began new lives 
in Argentina, many settling In .Bue- 
nos Aires. 

White, largely urban and imbued 


with middle-class value*, Argm- 
tines feel little afflntiy ftr ifae m 
of South America, much of It poor, 
rural and of mixed, msttio «d. 
Nor do Bolivians, Bmfflwa and 
other South Americana hare gnat 
affection for Argentin es. ^ 

For many who Immigrate*, tew 
of them Italian, a thlr d^SfePdah, 
others German. French. rwiHgmaa 
and middle- European 
Ufo in Buenoe Aires was mo ulded 
by poverty. It was out of ffca iHapt- 
ation of displaced wort** poopfa 
that much of Buenos Aires fiiim i r ^ 
Including the tango, grow:. 

I did not spend too moot time 
after dark In La Boca, the wak- 
ing-class area down by pert 
where Buenos Aim Ufa b*an for 
manv of the early Italian band- 
grants. The brothels have go m, 
knife fights in the bars are lees com- 
mon. and moat of the a quoW tene- 
ment buildings have been puBod 
down. In the day-time it fa a good 
place to walk to get an ktea of tbe 
city's beginnings, but at night tt is a 
Utile rough, J • _ 

But I did spend more time to 9m 
Telmo, another working***** dis- 
trict dose by. It b teeomteft steady 
gentrifled. its warehouses being 
turned into artists' studio*, its on®- 
crowded dwellings converted to 
antique shops jammed with family 
treasures - clocks and porcelain, 
cast bronze and marble, mirrors 
and wind-up gramophones ~ 
imported by later and wealthier 
generations of Ports Mbs. But there 
is still a genuine neighbourhood 
atmosphere that, for me, brought 
out the best of tbe great urtaa con- 
clave that b Buenos Aires. 

I toured the markets with local 
housewives, watched old men in 
their undershirts playing dominoes 
under the trees of tbe Plea Dor 
rego. and kicked a ball In the street 
with a young crew of future Mara- 
donas. In Dee Nivel, a simple little 
restaurant with ptutk t a b le dot h s . 
lOgsUon wine Jugs and a vast char- 
coal grill. I ate thick Argentine 
steak, the tendered In the world. 

Bast of all. I found a small place 
called A Media face - In the Half 
Light There are not many places 
left these days where you can watch 
and listen to tango, tha sensual 
dance, the sad songs test far grow 
ettons of immigrants were the 
axpresskm of abewact and toes. 

But the ekterty PcrteMos gathered 
in A M w ft a Im not only knew ihe 
music, they remembered tin words 
mid sang them with tears in their 
eyes, For all Its modern bustle. Bue- 
nos Afros is an evocation of the 


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Woodlands Resort 

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KENYA 


KENYA. 

W ild Wintersiui at tame prices 


Gatwfck departures 19 & 26 April, 3 May “95. 
Departures also available from Manchester Airport. 

IjUad Sea lodge £349 with bay board 

A charming Three Star beaebside fir 7m. (Extra week £140) 
hotel with a large swimming pod 


& gardens on Diani Beach. 


fir Tuts. (Extra week £36) 


Travellers Beach Hotel £459 with bay board 

A Stunning Four Star hotel on Nyati for 7X2. (Extra week £85) 
beach u.Htb huge gardens & pool. 


See the Inspirations Kenya brochure for even more superb 
value beach hotels, tropical weddings, and die widest range 
of safaris mio the wilds of Kenya, Tanzania and Uganda, 
all with quality Caledonian direct flights. 

See your travel agent or 
call 0293 822244 24hr 

Inspirations 

DiC 



ABTA CS5W. ATOL 2314 


ECONOMY BUSINESS 
& 1st CLASS 


TEL: 071 493 4343 

FSl X; 07 7 9 t 9JJXS 


•Nawuiaufla-mMUfHWG. 

•aauwtMm-wmnNran- 



AFRICA 


ZIMBABWE 

T-VlZAti-A. F-OIS'.VANA 
ZAMDIA .ft S-AViBU 

TAILORMADc SAFARIS 


Luxutou* remote lodges. 
Waiting, oanoalnp. riding and 

vshleto Mfarm with tho v«y beat 

Oukkm. Superb wfldttk. 

Adventure with comfort 
Call us to create your Ideal safari. 
Phone John Burden on 


Hamilton House, PTxL 
06 Paknereton Rd 
Northampton, IWM 5EX. 


CARIBBEAN 


Bahamas 

Luxury Motor Yacht 
based Nassau; up to 
8 Guests plus Crew. 
Attractive Rates. 

Brochure: 

0890 840678/S09 


HOTELS 



MARBELLA 

HO I LL 

LOS Movrnuos 

32 >ears <>t 'tradition 
makes u-. urn.' of 
Spain's In-si 
Resort Hotels 


I lllMV l- lk;U ll 
4 S v. j in nt in e |><m)N 
4 ( rlllimH'l n.-Iillll itJIt'' 

4 fl.u> 

N ielii elnli 
I Kl I 

(.Ol I ■ I t NMS - "-of \sll 


(.RAM) I I \I 

III : ..*4-5; :s; ftS 4(< 
I \\: (54-5 • :s: 5-S 4(. 


PORTUGAL 

7k. LISBON, PORTUG AL\ 
ExecpFoiial beautiful property to 
rent on wixte jMcducmg estate. Nr. 
the coast & just over an hour 
north of Lisboa. Seeps 12-16, 
swimm pooL staff of 4 ind cook. 
Still sva0july4: from mkl 

Cemtart T ntwnalinniil 

. Qapters for S is & other be aut , 

v^Huptaty in Portugal: 071 722 tfnat 

ALOAHVE, WESTERN - Nr. Luc, Lata 
bOoMaB- Luxuy vW, 0 taiga twdaomi an- 
suta. Sandy baacti -SMm. Panomric soa 
dam. Large private poalSal TV. Mold. 
Laic of apmsm. V. quiff. Some MyMug - 
£1,230 pw. 081 8® MW 


FRANCE 


PROVENCE, magnificmTN 

18th Century Chateaux between 

teu^court^i^8l6 or up toSt 
2nc out-buildinra. Staff int code. 
Ami 18th Aug2 weeks. Contact 
International Chapters for this Ic 
other beaut, property in Prance: 

V 0717220722 j 


ITALY 


Tuscany 

IxwdyhMjsewiflisf^bnaibgpocJ 
and maid. Nr Lucca sips gouldS. 
Now available 16 July 2 weeks 
ccrtact latenatkmal Chapters far 
this and other beautiful properties in 
Italy. 071 722 9560 


FINANCIAL TIMES 


Whilst or Is taken to eatabtbh that 
our ad vemseia are bona fide, read era 
arc strongly recpmnrended » take 
Ineir <nvapi«eautions before entering 
into any agreement. 



Make sure you don't miss Business Travel 
Classified every Monday in the Financial 
Times, it provides a definitive market-place for 
hotels, business travel agents, business 
flights, and any other service that will ease 
your journey. 

For advertising information contact: 

Julia Copeland +44 71 873 3559 or 

Graham Fowles +44 71 873 3218 
Fax: +44 71 873 3098 

FINANCIAL TIMES I 

EUROPE'S BU5INt5W«iEWSPAPER___| 


•t 










% 


FINANCIAL TIMES WEEKEND JUNE 25/JUNE 26 1994 


WEEKEND FT XVII 


v'~<V 




JERSEY 

Far from the 
madding crowd... 

..if you're looking for peace and tranquility 
with superb service then you'll find it 
at The Atlantic. 

One oF Jersey’s top 4 star hotels. 

Tel (0534) 44101 

Ldflcyc-SiSrafaJe. 

"attantfc Hotel 


M/RAC**** 


* * A * 






NON STOP-OR FULL STOP? 

Which will you enjoy best? The magnificent and 
luxurious Manor overlooking a bra a ti fa I 


or the huge range of leisure and sporting farilitjea? 

Brochure contact: 


wooded valley. 

Come Bud’decide for yourself. For 

COM RK GROVE MANOR 

HOra A COtiNTRi CU-BI^ 4 

Monktoa Combe; Bath. Tel :< 0225) 834644 P -W Q22S ) 834961 


HIGHBULLEN 

Country House Hotel, Chittlehamholt. North Devon 

* Secluded Yci Marvellous Views. * Highly Rued Restaurant. 

* 3.“> Double Rooms With Bath. Coioor T.V. 

Id all the impartial Hold Guides 
£-17.50 - £70 per person, including dinner, breakfast, service, 
vai and UNLIMITED FREE GOLF 

OVER 10 MILES OF SALMON & SEA TROUT FISHING 

& INDOOR tans. 

SqmA. cTcywa. hd&nfr. wane, Mon room. noted. tpm to*. Moor patfag. noe^ofc par ttfaty^oE 
gelt coupe treaded profeokml). Enecugi* ajufcm ic n nn 2CL 
Qukfcai ovtr 8. 

RIVERSIDE LODGE 4 eoniitc bedrooms self catering (services avaihbleV 
85 acre antdem woodland. 

Telephone 0769 540561 7 



Italian style and elegance 
comes to Belgravia 

Weekend & Summer breaks from £97** per person 

Rates indude: accommodation, English breakfast, 
welcome drink, newspaper, VAT. & Service 

The Halkin 

Halkin Street, Belgravia, London, SW1X 7DJ 
■telephone: 071-333 1000 Fax: 071-333 UOO n 


ENJOY READING YOUR 
COMPLIMENTARY COPY OF 
THE FINANCIAL TIMES 
WHEN STAYING AT THE 


16 



ST JOHN S 
SWALLOW 
HOTEL 

SOLIHULL 


TELEPHONE: (021) 711 3000 FAX: (021) 705 6629 


he Cornwall of Daphne da Manner, 
unspoilt, enchanting, inspirational . . . 

Enjoy (Ac quiet dignity of this fine hotel on 
the hanks of the Hdford River ^et in - .. 

65 acres of spectacular parkland, with ( 

Golf Coarse, indoor Swimming Pool. 

Tennis and every amenity. Close to 
National Trust properties and gardens.] 

AA *★* RAC 

BUDOCK VEAN 

GOLF & COUNTRY HOUSE HOTEL 
MAWNAN SMITH FALMOUTH CORNWALL TRU 5LG Td: 1326 250288 





(E 

LONDON IN STYLE 

lE3j 


At This Superb Town House Hotel 


CORPORATE ROOM RATES FROM JUST £51 FULLY INCLUSIVE 
WITH COMPLIMENTARY CHAMPAGNE WELCOME OFFER 


Overlooking Hyde Park 
55 Personalised Rooms 
Deluxe Rooms & Suites 


Private Car Park 
Restaurant & Bar 
24 Hour Room Service 


LONDON ELIZABETH HOTEL 

Lancaster Terrace. Hyde Park, London W2 3PF 

Tel: 071-402 6641 Fax:071-224 8900 22 



ESSENTIAL 
HOTEL GUIDE 

i>N 

30iii JULY 1994 

.H further del. nls o* to reserve 
voui spjiL' ptejse telephone 

.ALISON PRIN on: 

071 .X7J.157H 
,ir ta\ iknib nn: 
u7i s7J :-o°s 


EGON RONAY AA***~* BAC 
Luxury Breaks 

TM? 

Cdtifh'Linor 

^ Qy HOTEL 

Virtoraui Manor Hook. Set in 900 
am* at tulWc woodland. 

Ideally located for oxplarii^ the 
bmultfiil (Inel Caafitqmide. 

With culoiau pirpoird by IWirJmft 
tTdsb Chtfoftlw Fnw. 

Indoor n»l * Lewuro Fadlita*. 
£50.00 per penm per mb*£ 

Dinner. Bed end Breakfast. 
iPri. Set or Son I 

The Celtic Manor Bold 

- Coldra Woods - Newport 

■ Gmot ■ NF6 2YA 
TEL: 0633 413000 25 


SLENDER AND 
ATTRACTIVE 

X ^ 



SUm down and purge Your 
system wtti the _ 

* F.x. Mayer fijsrtrig dire or the 

• Vtaf-dfet 1.000 XcaWBy ■; . 

Under medk^. arc in a head 'of 
supedailves. affaxing every con- 
venience aidulaigc nesnfaer of 
oaas...- ’ - V 

2 weeks package offer. .. 

' 13 nlgfns and dk? portage 
inducing meals: DM4.100.- p. p. 
bt'Aedagwsiic tector ttie Swings of - 
tkassKsi mdebeare combined nth 
effective XTunplemciuary medical 
methods. The icsutts’arb'appGed to 
the indfrttjai patient aid sippfcmav 
led by The .clinical lapcrtencc of ihc 
physicians. Funfaer hri or matot 

Vital Hotel Royai • ••• 
A-6HXVSt5Cfefcgflrtl v :. 

Td. +443S212M431-0 ‘ 

Fax 4431-350.' 



TheCIifton Hotel! 

| S3 ** * nsa g | 

FOLKSTOfCS PROTO HOTB. 

Ekgaat Regency-Style efiff iflp bald 
80 bedrooms co-suite. nttdUiic TV. 
wefcame aw cekpbooe. Solarium. 
CUFTON WEEKEND BREAKS 
2 nlgtm Bed A Breakfast £65 pp 
2 Dinner B&B £94 pp 

3 nights Dinner n* » (matt nv*«r- 
b Sunday) £132 pp Inchnfing VAT 

Aimac BREAKS 

2 eights Half Bond from £100pp inc 
IStEPftAY FEST1VAL-Z7 Aug to 4 Sopt 94 
jfrOvned&exdtiDg events 
■firewwk'ftooo 

l^epohCEfTopAirSbae 

(0303) 

L 851231 



TOEBLAKENEY 
HOIEL 

ETB •••• 

AA/RAC 
Blakeney, Nr. Hob, 
Norfolk 

Traditional privately 
owned friendly hotel 
overlooking National Trust 
Harbour. Heated indoor 
pool, spa bath, saunas, 
mini gym, billiard room. 

Visit to relax, walk, 
birdwatcb, sail, play golf, 
and view historic places 
including Sandringham,the 
Norfolk villages, 
countryside and coast. 

MIDWEEK AND 
WEEKEND BREAKS 
SPECIAL FOUR DAY 
HOLIDAYS 
Telephone 0263 740797 
for a brochure 12 


WILLET 

HOTEL 

32 Sloane Gardens 
London SW1W8DJ 
Telephone: 
071-824 8415 
Fax:071-7304830 
Telex: 926678 

SMALL 
CHARACTER 
TOWN HOUSE, OFF 
SLOANE SQUARE 

All modem facilities. 
Full 

English breakfast 
inclusive of very 
modest rates. 17 


GET LOST ! 20 


In a luxury 
Connemara 
hideaway by the sea. 

An oasis of character, calm, 
charm, comfort and cuisine. 
Our own beach, bikes, woods, 
mountains, 100 year old 
gardens, fishing, tennis, boats, 
riding, stables, turf fins, pets 
welcome. Library and mini- 
suites. Golf locally. 
CASHEL HOUSE 
HOTEL 

CONNEMARA Co. 
Galway 

"Muxs From Anywhere" 

I BUT OUT 3 HOLIES FROM LONDON 


Td: (Olti 353 95! 5IUDI 
Fax: <010 353 95) 31077 

F;;i i Bias; 'i run. k B?j a 



COUNTRY HOUSE 
HOTEL 

Award winning Georgian Manor 
sex in over 300 acres qf deer pari, 
takes and gardens and within 
half an hours drive af die South Coast 
2 nights Dinner, Bed 
& Breakfast from 

£ 98 RER PERSON 
inclusive of VAT and use of our 
health dab and healed outdoor pool 
For Colour Brochure: 

Busted. Ucbfidd, East Sussex 


*■ 0825 732711 




THE 9 

SWAN HOTEL 

SOUTHVOLD SUFFOLK IMS SEC 


Country Living Magazine - book of Bbcafbs: 
Gold Award - Bbst Hotel 1998/94 

The perfect piece to reamer year peace of mhxL Nesting hi tbe 
Market Square in ooc of the last imspoih [owns in Eugland. 

Tbe Swu csmiiBiec K> provide old fahbiooed comfort, nm a or te g of mother igc. 
Tranqinlity and restare the order of tbe day. Our food is deHcknxv our wine BM i* 
esedkot and braakfm means a fufl Boglkh CbkL 
Small waaderthal three otuitcra of our guess ere regnlm on a return virit o» 
have been recoamraded to oomc here by thdr Crieads. 1ft that son of place. 
Southwold beach • awarded KU Blue Flag. 3rd year running. 
TELEPHONE: <06021 72S188 FAX: (0602) 724800 

Tryus,tkigishau>lifi:oughttobe. 


Tin. S1I.4.V \\1) SOriHWOLT) - -A D£UGJ ITT Cl COMIUXATJOS 


13 


The Unique Island Retreat 


A beautiful hotel 
setontts own 4 
acre Island in 
theRtaer 
Thames 
near Windsor. 
Our Award 
Winning PavOtan 
Restaurant 
combines 
tnnovabue 
adstne uMlh 
stunning rtver 
atews. 



Weekend 
Island 
Breaks from 
£ 60.00 per 
person per 
5 night 

tndustaeqf 
Table dTHote 
Dinner. Bed 
St Breakfast 
(Mtntmum 
stay 

2 ntghtsf 


FOR YOUR SUMMER BREAK 
WITH THE MAINLAND 



BKAX-ON-THAMES 
BERKSHIRE SLS2EE 


monkey island 
Hotel 


Buraan! 

062823480 


15 


ROYAL 

WINDSOR HOTEL 

"A Leading Hotel in a Leading Location ' 


275 folly Air-conditioned Guest Rooms and Suites. 
Gourmet Restaurant and Bars. 

Fitness Club, Night Club, and Underground Parking. 
Up-to-date Conference Facilities for 10-350 People. 

Rne Dnqnesaoy 5 - 1000 Brussels 
Tel: 02/5055555 Fax: 02/50555.00 

Member of " The leading Hotels of the World" 



15 

Hotel 

Golf Coobsb 
Leisure Club 

<5 kCNS rxOM 

Central 

London 

lOMDtSPBOM J6 
of M25 

SANDERSTEAD. 
SOUTH CROYDON. 
SUBKEY 


SELSDON PARK 

FREE IN AUGUST 


•STANDARD 

ACCOMMODATION 

FREE WHEN 

YOU TAKE 
DINNER AND 

BREAKFAST 

IN OUR 
RESTAURANT 




THE CALLY PALACE HOTEL & GOLF COURSE 
GATEHOUSE OF FLEET, 

DUMFRIES AND GALLOWAY DG72DL 

wwww ScctttsU Tourist Board DELUXE AA *-*♦+ RAC 
Set In its own grounds within 500 acres of Reel Forest 
The CaBy Palace is one of the most beautiful locations in Scotland. 
56 luxurious bedrooms and suites, fine food and frientfy professional 
service. W&hin the grounds them is an 16 hole par 70 golf course much 
of 8 in mature wooded areas and around C« 8 y LeJte. Abo. there Is an 
Indoor leisure centre, outdoor tennis, putting, croquet and boating. 

- everything one could wish for - 
for a week, a fortnight or just a faw days 
TENNIS WEEK - fun for al - starts 31 st Ady 
3 night summer break from £174 per person 
or from £204 per person inclusive of goH. 

Telephone 0557 814341 


21 



NANSIDWELL 

The cosiest Country House Hotel in a Cornish Garden by the Sea, 
Best of Local Seafood, Coastal Wafts, wonderful gardens and log fires. 
In alt the unbiased Guides including The Good Food Guide. 
From £45 pp (B&B) or £6Spp {7* board) 

Mawnan, Nr. Falmouth, 

Cornwall TR11 SHU 

0326 250340 


EUZAEEffl 

HOTEL 


20126a 


^ & APARTMENTS 

37 ECCLESTON SQUARE. VICTORIA. LONDON 
SWJ V 1PB. Tefc 971-628 6512 

FziauBy. private hotel in ideal, central, qnict location overlooking magnificent 
gardens of stately residential square, dose lo Belgravia. Comfortable Singles 
fromO&SS. 

Doablei/Twinc from £SU)0 2 nd Family Rooms from ZTSM itwiadiaggood 
ENGLISH BREAKFAST & VAT. . 

Also haou v 2 be r li oo m a attx Bo ap artmenu (min. let 3 rawnftni 
COLOUR BROCHURE AVAILABLE 
Egon Ronay/HAG Recommended 



A selection of hotels and restaurants of distinction in Grampian 3 
Highlands and Aberdeen, an area renowned for its 
beauty and variety. 

MALT WHISKY TRAIL, CASTLE TRAIL, COAS7AL TRAIL, 

royal deeside, gardens, golf, fishing, riding 

Send for a free copy or phone (0224) 632727 (24hours) 


Tartan CoflectJon, 968 St Nicholas House. Aberdeen AB9 IDE 
Name 


Address 


Postal code 




THE GOLF COURSE IS ON A PAR 
WITH THE BEST IN AMERICA. 


Sculpted out i.r a l*tM) 
•wit tnuiuiy i-MJtc In'Jjck 
NhUau» II ib r-nc of FJJglan*l\ 
fincsi iitrvi j;oir cuurcrri. 

.And at the end ■ >1 your 
round ym can discover ihv 
ddights uf chi.- Hciilili & 

H in css Spa with ils falnjliuis 


indimr pool. L'.iiisinc is 
undet the guidance uf 
Albert Rnu.v 

Our Vhrdon Linlf breaks 
sun from £125 pci person 
per night sharing and vim 
ran arrive on any dtiv. 



I I Wi ll RYM aXOI- 

. . u--; ir..r,Miu. si.i' v. : : i-rru. i 



HCM WP 


Kim uuiiAS Eu:r;vN<T:\^^^^ ! 'Tii£ Pomikkian Hotel 

Vl }Lxt Le»w* vAbOf... 

Set nan enchanting position oveiiodong sanOy awe Surrounded br Naumai Trust Ccusiire. 
s«a and fresh Cornish air. Eoceptona) ndoor and oiadoor leetiie Irohes mOi 
regsleitd nanny and creche Gating books available 
A sense of mint and seclusion in a bust/ world. 

For hother information 8 colour brochure Tei 01326) 240421-Fax (0326) 240083 
or wile. Pokman Hotel. MuBon. JjzanJ Perinsfe, Souti.CorrwallTRl2 TEN 10 


Kingston 6 
House 





nw 


bo 

¥¥F 

El - 



jjyiggpEjin 


'An LriYpthTHid ExfvriintY’ 
Adjourn from the hubbub 
of life to a perk'd suite in 
one of England's most 
beautiful houses. 

For hmhrr mlmution p lose unut 

Kingston House, Sfoverttm. 
Tobies, Devon. TO 4 bAR. 
Teh 0803 762 235 
Fax: 0803 762 444 


Although within easy reach of London and the Home Counties, 

Nutfield Priory 

is an oasis of tranquillity in 40 acres of its own grounds and with 
breathtaking views of Surrey and Susses countryside. 

Anytime break rates include: 

Accommodation in double/twin bedded rooms. 

Traditional English breakfast, 

3 course dinner and coffee in (he award 
winning Cloisters Restaurant. 

Full use of luxury leisure club's gym. pool, 
squash, sauna and much more, Newspapers, 
turn down service and VAT. 

£40.00 per person per day in August. 

2 nights minimum stay. 

NUTFI ELD PRIORY, NUTFIELD, REDHBLL, SURREY, RHl 4EN. 
TELEPHONE: RECEPTION (0737) 822066 FAX(0737) 823321 

Deep in the Surrey countryside, readily accessible , with breathtaking views 
and extravagant architecture and design. 




ESSENTIAL HOTELS 
BROCHURE GUIDE 

ORDER FORM 

Please enter the appropriate number for the hotel brochures you would 
like to receive, enter your own name and address and then send or fax 
this coupon to the address shown. Replies must be received no later 
than 30th July 1994. 


1. 

The Atlantic Hotel 

□ 

14. 

Nutfield Priory 

D 

2. 

Vital Hotel Royal 

□ 

15. 

Royal Windsor Hotel 

□ 

3. 

The Tartan Collection 

□ 

16. 

St John’s Swallow Hotel 

□ 

4. 

Combe Grove Manor 

□ 

17. 

The Wiilet Hotel 

□ 

5. 

Hanbury Manor 

□ 

18. 

Selsdon Park 

□ 

6. 

Kingston House 

a 

19. 

Budock Vean 

□ 

7. 

Highbullen Hotel 

□ 

20. 

Cashel House 

O 

8. 

The Clifton Hotel 

□ 

21. 

The Cally Palace Hotel 

□ 

9. 

The Swan Hotel 

□ 

22. 

London Elizabeth Hotel 

n 

10. 

The Poiurrian Hotel 

□ 

23. 

Buxted Park 

a 

11. 

The Halkin 

a 

24. 

Nansidwell 

n 

12. 

The Blakeney Hotel 

a 

25. 

The Celtic Manor Hotel 

a 

13. 

Monkey Island Hotel 

o 

26. 

Elizabeth Hotel 

D 


26a. Elizabeth Hotel & Apartments Cl 


TITLE INITIAL SURNAME 

ADDRESS 


POSTCODE: DAYTIME TELEPHONE: 

WEEKEND FT ESSENTIAL HOTELS 
BROCHURE SERVICE 

(Ref 10/94) Capacity House, 

2-6 Rothsay Street, London SE1 4UD. 

Fax No: 071 357 6065 

Tile informal ioa you provide will be held by the Fmucial Times and may be used id keep you informed of FT produaa and by other 
companies for tmamg list purposes.. Tbe FT is registered under ihc Data Protection Ad I9S4. Financial Time!. Number 
One Sontbwaik Bridge. London SEl 9HL. Please tick dris boa it you do not wish to receive any farther informal ion from ibe FT 
Group ot companies ap prov e d by the FT Group. □ 





It 


PROPERTY 


STRUTT & J4 
PARKER* 1 ® 





Angus FDdv3u&k*.DiMdeB(!Siaaoi01Sm3c&ClunBiaBiMMnll*lM>dJ4p1- 
a4t»»itgUW with eHearirr w oodUrKfr »>d pot mrtN for* Prat eto»U»ooL JLcC 
1: BmowkiEltne - Aboa 574 octet. Mtaskn Home: 5 itcepoon nou 8 bodmocai. 
Boiae Fame Fggih e xa ^ w i lh^I fasnbcalAig* Lot 2: Eta* M«in« F*nn - Abort 
244 ten*, r ompwt «nbto farm wim frt mb o m c. tcxfiao ai l strafin g LcOiGta fam 
Coup - Abort 2 am Abort «2ft Acna fa A Forofc » ■ whcfa or In 3tafc. 
EdtatMVgh OfBet Tel: 031-226 2S0Q. Rc£ 3AA46KS. 



Berkshire Nbwbny t nSks. M4 (n® 6 nob*. 

T1 mini* i A himlwmifi i minli j lnmii ilhuliil 
-vHage of Ynttendon. Reception b*H. doming 
kudx3Are*lrfaAn»m.iitilii)riDorn,c)oekKKXD,7bi 
3 bedroom eoaage. Gn>£^ bated twsaadng p«Lr 
puldodL About 3 Bom 
Newbury Offlce Tdb (003) 521707. 




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Chcsbkr fi—"* 4 mir^ i - i w , p n « i qn tmt«% y«n>)iM>n 17 mJm 

Dm Ifatton Houk EeUies- An aoMaodtag modern hornet Idem complex, *od a 
wtM eqnipped arable and gf farm. 4 icoepuoo. fi bodroomt W m mile). to. 

T » jttl ii%th nf fg ffmtww^ prtnl ^ pwmal gwAgt , hlm_ 

lS*Aaw.For»«k»JLwhok.(A&*lb«rM>*TCiaad3coCXag«5najbrjraflaWrX 
CbeNtrOflkeTd: (0314) 320747. London Office Teb 071 -629 7282. ReLUAAXUX 


Cheshire - South WirraJ Owner to miJa.(M53) 6 nnlt*. Liverpool 17 mile*. 
A magnificent Cndr 11 Vldorfan Caddo boats in a ratal paridatfd selling. 

Hafl. 3 reception roam. 7 bedroom* *□ with cn ruite tmhro ona. 2 roan tnoae. Sdf- 
w u mm iI aflwi mfc Gmg& |LsdgeA Mwiwnlilbliy i MU MpM ^ 
About 31 mots. (24 acre* uS>}ta la tenancy). Region £75*pOO. 

Joint Agate Matthew* A Goodman livepooL Tft 051-236 3732. 

SlruU & Parker Chafer Office Tcfe (0SW) 320747. w mwtw 





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EastSnffiex-ftfr.Roh^rtshrit^g^vroWgri^ 
fiwfWinii fa»Tlinm^wMTnii»Hy W»B« 14&slcs. A line Grade II LMed 
Edwar rirafaMW w i th riewa grew taomifaaASiectptegxra* 10 bedroe ni* 
5Mliliaia.3li<fluiif » lhtllfiii!tiH'liwt ;ni»m»n| 1 lnihMifn » IVlfhnlllHI. 
«C48P and bong|deA*nngerfbo3dmg*;gaxfc»a^ lead. Abort 17* km* 

Ala whofccr fa2kte JcU AgateJaya&Gi.Tcabdi!^Wdk.Ttb(p$9Z) 
511456. SirnttA Farter linden OflOoe Tct 071-629 72S2. 1U1AA5US7. 


Surrey- OckteyDoJdng 7 mdo. Ixo^32 mik».M25(J9) 13 mOoi. 

An rttracffcvcannliy bow in an ta*po6t bat wailik rural pwftfw. 

(Rmoody divided imp mo bit «ac3y maud, company) ha&. 6 rweptian mat. 

< lwfainM 9Wmn.ii. A arff naf .«—■< ftp— *~.~t S.». 

tnqut fcr4 CM, ganJcn*. paddock. About l| tota Regfon Uftjm. 

London Office Teb 071 6297282. 

lc£MA9tm 


13 HILL STREET BERKELEY SQUARE LONDON W1X 8DL 

Tet (071) 629 7282. Rax: (071) 409 2359. 


BRODIES 


SCOTLAND, ANGUS 

Blairgowrie 19 Miles Braamor 24 Miles 


WTJH ASOMFtOttS L0D0S AMD SOKE Of THK TOUKSTI 
STALKeiG W TH* BAS1XBN (mAMFlANS. 
aVEBMatC US BUCK 3H HMDS, n BRACK OT GWOSE AND J 


Profitahl* mIima Arm. D*«r IVrt 900 Acre* of woodlawl*. 
Cxdtinc pbaMana atmting and duck ffi*bdng. 


Kurtin c pb min Anodagnad duefc ffi) 
Uwtt fiahtogax Oa ri*«r lab. 

ABOUT IXSQOACKES- 
P0E SALE AS A WHOLE 


KKOIHr.'' V 15 \<l;n!i < I ilinlnM ^li 1115 SH \ 


Bidwells 


CAMBXUJDGHS HIRE - HILOERSHAM : - ‘ 

Ljntbihifjc ’niii - * NiTWioAii I?hmIo • .... 

Well appointed village hofl» clow to Wvtr %Mt 
4 rcceptiuii fix*ms 5 btfklu’ninv 1 iiMiW) 

«ablc block. ( hirJvn. \V«u*Jr.l »po«::r.b 3 Kt»cr In^r. 

About 11 mens - often « round ^425,009 ^ ' . 

0223 841842 

-.rnwcnn »«;«wi*iiirw».'fc «■»# •■« ■ - . 

r.uiuinr.l IIHUKi.'ll . r s « 1 1 H 1 I'll'll* !•«**« 


HENHY 

ADAMS 


NORTH EAST FIFE 
Nr ABchtennudiQr (Scodand) 

A taaaUtnM newly hone Itut 




GOODWOOD 
(Chichester 4¥z mite) 


.tl nit 

aaet^j E 


Tr~-n-.Tr: 


nxocntruction with 2.4 acre* m a 
apnOBaiUrandptaminau poa&an 
at the Cop of nt Smuh Oownf 
vrith afumnng www lm>Mh 
Ojchoter A the omsl 

COMPTON 
iTfcterfiefd 8 mikstl 







Period FanrbciLlinjP ■. Jh 
punuignxiwn! !« crmrru’a 
irJo.tawriiin^v jt idninu 
co u 'J Ly Ktag j ftr ftiwiw Jn*l 
ad^>--in« uesrout LrfmLnvitii tc 
loUwuht^Jcm 

FOR SALE n AUCTION 
ON MTH JULY 
(I'nltM Mid pnandf) 
TEL: 0243 333377* 
FAX: 0243 S3 1450 


EajorbtB • sUttaiwd nu« tapcct « tt 
Sorit Cwnnfl ia u uti at Miautin 
maul booty. Tit vietn m mpifaw. 
aMbinaif qiahkaw «itb ibe 

cwtninu of nadorp living. Tbc S 
bvdiDMMd kMH It t wi|w t ttuond • 
aatnl Met m UK SokMi Kjk- tcMuta 
ueloda a luge logl— pjfc GuplM aad 
galtary am, «c. Atcbitntotal mi4 
•ggtiad fat Oanka g r t— 4 . «mdl»t tod 
pMhbKb»«va>faMe 

00n> amod JCSnooa 

PAjmcvLARS neoM arrmrow i.to 

raimrmmocnrtita 


Bryan Bishop 


HERTFORDSHIRE 
Superb 8‘A acre stte with 
planning permission tor 
single dweWng. 

Stie by tender only. 
Bryan Bishop & Ptnra: 
Telr 0438 718877 
Fax: 0438 71 6888 


On the Instructions of the Trustee* of J - 
The Seventh Duke of Newcastle 

A Stile *t AuvUcw-Mulv I****, uf *e mn4U»ikr i 1 * tm tb&im 
kLMMul Ldnbf a \o«ii»shJUJ»»hire 

The Lordship of Worksop ^ 

Ur Ci*n»«w*i >rW Pel»e'4U«wbM»ai A4wJ 
The Lordship of Newark-on'Tpen* A 

ilL»mt4o*tfvBwlMoyab*>XAwrfnnaAe. 

JUmtr nfatMAUW 

The Lordship of Clumber iwkcev iwmm 

And Ihr I o< Itw M*»tV «V. AtmaWry 

Carol* ton, Carlton -in- Lmdttck Font Statu*, i aw i tf m. 
nUnWy. Evtrtun. Rtattaw. LUwtant CuttaM^cHanhdd. 
tludsfcH-k. Kiltun. KilvwgHm. Latwhim. M t W B H MMdHMk 
Marta. Nocttiotp*. ^>r*ton Pavarrfk Sh i ll oA S ta u lj a . 
Stock with. Watoby. Wa*wr|M44. and WtHeutfihy. Tell 
included wtih the tain. t.Hhrr robn. a thmu caran^, a 
CVaunabun pv« miun*. i Bu mmatnd AddriM tfc iw%pt* V 
Bnlkdt and Eurepean Oidm <i ChlvaVy. do c um o n W, aM 
ilium maird Podigtw Bnok. dattnt I m tw A w fc x 

Oukttue and panwulan id the U4a hi iiW B tW* tor 4)9 

lUSStOlM h* rW%)nr nr toy CinHlCMd bone 
Manorial Amtl— aw, Wi Konw latfoai Uw k 

Loodaw sett uti. Taten^w*M 9m w mw« 


(. own; *, //own vwm i' 


An ksdepcodcxu. cum eftecthe 
and very successful buusc 
finding service. 

Dawn A Comwa* - 0*72 2X1M4 
HaaA * Donne- MU 715748 
TVCotavoldi. «M2 UC3M 
Bwte, Bert* £ Sooth Out 
■biutuui 

Swny * W. Smx - «T 3 # * 17-04 
Wtobfcr « Somtncc - KVJ 7318 ft 
Sc*,liaraSCMdH -«34 J 549 fl 
London -171 738 tWS 





padues* CM, soo M 12 mWton 


0626 776088 

VERNON KNKiHT ASSOCIATE 


soMcrtseT/nevott eonont. Twm 

8 mHo*. EaMMHd Bow rtudy comm in 
hfcghty atvocuvn rural loaUtan Two 
toantaor hauwo p and a tattoom*. ndi 
OurmiloriM. t(c SuOaMo tw op 1o 40 
pMpd> *0 a* taow 12 atna. C 2 i 8 jOOQao 
gongtanoain. O nmmw Haw ■ Tounan 
(DB239 277121 

C.Q.T. QMOtmMrrr LOMCOMOR. 3 
hfloay booch bool n onunow 020.000 
Ft*t tunWlMd MARSMUS 06003848M 



ahowamuacham hminiii 
QuOtaOftnOOMfi AMnntomt n 
MMy. o«a«e modt Many a 
itaM. Mi on* «c t ooo MU Rdn 
no— m wan a !»■* CM i ai a M Oia i 

co wtw a i X.3 an itMbowa*bfl«*g 




aro— O i a mom amt On mUb' 

Oodnom and ti t roo m 
samm. JACK9ON-ST0VW 
TmtoMBStJOB Factual 


don* 




OXFORDSHIRE 

NR HENLEY-ON-THAMES 


^r. : ' • ■ ^ -TlTTi 


Henley 2 l /i miles, Reading 7 miles, 
(Paddington 25 minutes). Central Loudon 40 miles. 

A FIN E FAMILY HOUSE OF TUDOR ORIGINS 
WITH GOOD OUTBUILDINGS AND PADDOCKS. 
Hall and 4 Reception Rooms, Kitchen, Utility Room, 
Cellars, 6/7 Bedrooms, 3 Bathrooms. 

2 Bedroom Cottage, Timber framed Bam, 

Range of Stables, Gardens, Paddocks. 

About 25 Acres. 


WEST SUSS EX 

NRCUCKFIELD 


m 


mw 1 4 11 1 jw i' 1 in 1 'iflmftw. 


Haywards Heath 4 miles, Gatwick Airport 12 miles. 
(Victoria 30 minutes) 

A FINE LISTED 17TH CENTURY TIMBER FRAMED 
FARMHOUSE WITH EXCELLENT EQUESTRIAN 
FACILITIES. 

Hall and 2 Reception Rooms, Offlce KUchen/Breakfest 
Room, Utility Room, 5 Bedrooms, Dressing Room, 

3 Bathrooms. 

1 Bedroom Cottage, Stableyard with 12 boxes and 
2 Bedroom Cottage, Bam with Planning Permission 
for Office use. Railed Paddocks and Woodland. 

About 47 Acres 

127 MOUNT STREET, LONDON W1Y5HA 
TELs 0714930676 FAX: 071491 2920 






INTERNATIONAL 


unnzzzjz 



St. M a r y * s 

Place 

Kemsimcton Green . 

London W8 


SCOTLAND 


374 ACRES 


I!. It' 

pi m *■ 


A CHAMPIONSHIP UNKS COURSE WITH 
ASSOCIATED HOTEL AND GOLF CHAJUET 
Lot 1: Hoed Sc Manager's House - 104 acres. 25 Bedrooms 
& 150 cover funcxkn roenm. 50 seat confi acno c room. 

SO cover dining room. - OSes over £150,000. 

Loti 15 GolfGbaleta-4aaes. Offers oner £250^000. 

Lot 3c 18 Hole Championship Links Golf Course - 
266 acres. O&as over £300,000. 

For sale as a whole or in lots. 

SoviOs, Edmbnx^ti 031 226 6961 








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34 ACRES 

Nr St Andrews 

St Andreas 5 miles, Dundee 8 miles, Edinburgh SS mSes. 

16th CENTURY GRADE A LISTED CASTLE 
RESTORED B7 SIR ROBERT LORIMER 

5 Reception rooms, 5 vaulted rooms, gallery, 6 bedrooms. 
Servicr flat. Gate lodge. Courtyard cottage. Dowry house, 
tool bouse, garage, scores and kennels. Magnificent 3 acre 


■»- -^anSEir 


« \i 


SAvnxs 


Suffolk 

nr Bury St Edmunds 
Georgian House In about flv? acres 
3 recops, 5 beds, 2 baths 
(t Grvsute) crfSce stated potential 

annow. OuttuMbigg, 
gardens & paddock. 

Offers around £365,000 
SAV1LLS IPSWICH 
(0223)322955 


Savilb, Edkiburgfa 031 226 6961 


INTERNATIONAL PROPERTY CONSULTANTS 


COUNTRY RENTALS 


_ (JV" BLACK HORSE AGENCIES 
^ Gascoigne-Pees 


Eight substantial houses offering a harmonious blend 
of location, quality and luxury . 


♦ 4-6 BEDROOM FREEHOLD HOUSES FROM £l,l20.000-/;i,6OQ,OQ0 

♦ PRIVATE LANDSCAPED GARDENS * INTEGRATED CAR PARKING 

♦ 24 HOUR SECURITY 


j^> Celt tlie Sales Office at Marlees Road today 

X 0719383350 


GEORGE STEAD 


A confidential and duatet 
home finding seme* by indepgtutotnt 
experienced property experts for 
private or corporate diode. We caver 
Sussex, Bent. Estes t, Herts, Bucks, 
Berks and Surrey. We can reduce 
stress by saving time, effort and 
money, overseas clients are ueieame. 
Toh (0323) $00307 
Fax- (0323) 500430 



THE PROFESSIONALS IN 


RESIDENTIAL LETTINGS AND MANAGEMENT 


FREE BROCHURE OH REOUfiSr 



REGIONAL LETTMIS OFFICES 91 LONDON (CHELSEA) 


Am SOUTHERN ENGLAND: 


ALTON 

M3982M8 

FAHNHAU 

0752717890 

BRIGHTON 

0273 008746 

GUttOFORO 

003300336 

COSHAU 

08B28G664S 

WNGSTtW 

081604900 , 

EASTBOURNE 0333430042 

REKxATE 

B73> 2Z1411 1 

FARBfAU 

032823M41 

SOUTHAMPTON 

0703 448000 


LONDON SWT 

-On 730B6B2 




ur.Mi.tLRN or vrla. 


WEST PUTNEY, SW 15 

A very subtunhl douched bouse la a 
popular ;rad SOOght-aficr residential road. 
The accommodation k wdl sailed to die 
needs of a family, with foncol and 
informal reception spree, and wdl 
proportioned bedrooms. 

DMmwa Room ; DhmqKoqu : 
FAMn.Y/Strn?« Room : Mornmq Room 
Conservatory : Krra£EHB«EA£fASr Room : 
5 Bnwocoe ; 3 Bathhooms (2 en-sutte) : 
Unurv Room : P«ntn : Cloaxsoom 
Loit: Cfcmut : Garage: Gardsk. 
Oflen In estsMdOSUm (obfcci toeoolnci 


1‘}0 UPPER RICHMOND R0, LONDON S WTS JSH T£L: 061 '60 0S0 PAX: 031 :£0 OOiO 


JjjjTMItWrTiTrr 


^ s ™ n M al S^ u ? d > flrel gardc-ttmai^neiTr 
in a small prestigious block h.^nT; n „ c 


Ilf- 

■ 


■:K? 


-T3«aas“i- 

971 225 0277 


CHELSEA HOMESBARCH a CO Wo Litvi » 11 

roprMont Um buyer to van Nine and VALe - 

faon«y;071 83722frf. F«x07i 8372382. T»r™SL! 04ral Vtehnro A Co 

W 571 288 ’fiKF«#C07t 2M3M1 





















WFF.KENP FT XIX 


PROPERTY 


t 


i 


t 


< 


L 


B ack to basins is a surprise 
theme for nrino renewal 
in M a nch ester. Hie banns 
belong to tfae City's many 
canals and were used by traders 
and commodity dealers In die 19th 
and early 20th centuries to m»inad 
their goods, cotton chief among 
them. The bales were taken to red 
•nick warehouses as grand as pal- 
aces. 

By 1988, however, when the Cen- 
tral Manchester Development Cor- 
poration took control of 470 acres. 
40 per cent of die land was derelict 
while the canals were In disrepair 
nr fall of contaminated waste. The 
population was down to 250. 

Over the years, the basins had 
bean filled in and built over. Luck- 
ily, many of the great warehouses 
survived. What could be done with 
them to re-energise the city's 
heart? The answer was to use the 


Cadogan’s Place/ Gerald Cadogan 

Manchester gets a breathing 


canals - there are eight miles of 
them in the CMDCs patch - and 
dig out the as open spaces to 
encourage pleasure craft while am- 
verting the warehouses to flats and 
mixing in new buildings on the 
quaysides around the hastus. 

The aim was to clean up the area 
and provide sophisticated living in 
historic snrroimdings In order to 
lure people back and let central 
Manchester breathe again. 

It Is working. There are now 
about 2,000 residents and there wQl 
be 1,040 more from September 
when a student village (mens at the 


old Dunlop Buildings where 
Charles Macintosh invented his 
raincoat around 1823. 

Such developers as Housing Pro- 
jects, Bell way, Macbryde, the Man- 
chester Ship Canal Company itself, 
Piccadilly Village and Wimpey are 
thrilled at bow their schemes have 
sold, often right off the plan. 

Macbryde is building on Slate 
Wharf, beside the Bridgewater 
Canal, and Bellway at Woo 11am 
Place in Liverpool Road, opposite 
the world’s first passenger railway 
station. Flats in these develop- 
ments start at around £50,000. 


The smartest conversion - and 
selling fast, although only a few 
days on the market - is a ware- 
house beside the Rochdale Canal at 
42-44 SackviHe St 
The Manhattan Loft Corp or ation, 
fresh from successes in London at 
Summers Street in ClerkenweU and 
Wardour Street In Soho, is turning 
a superb building - rich in beams, 
cast iron and high ceilings - into 
35 shell flats which buyers will fin- 
ish themselves. Prices from 
£54,000. 

Meanwhile, if you are a developer 
looking for a warehouse to convert. 


the CMDC (061-286 1166) will be 
happy to suggest some. 

□ □ n 

The May figures of the Corpor a te 
Estate Agents property index, 
based on data from 4,100 offices 
(with about half the country’s 
estate agency business), show a 
sliding market. Agreed sales fell 
3.6 per cent and completed sales 4 JB 
per cent compared with April - 
which Itself was 10.4 and 112 per 
cent down on March, the best 
month in a long time. 


space 

New listings, an Important sign 
of confidence, also felt 6.5 per cart 
fewer in May than in April, which 
was 11.3 pm* emit down on March. 

Despite the overall slide, London 
Is a different story. Winkworth, 
with S3 offices in the capital, 
reports that sales agreed rose 40 
per cent from January to March, 
feD 21 per cent in April, and recov- 
ered 9 per cent in May. 

Noting 20 per cent price rises in 
central London since October 1993, 
10 per cent in Battersea, Fulham, 
Hammersmith and Islington, and 
“significant" increases farther out, 


Winkworth expects prices* pwk 
in the next month and then Pf" 
haps to fall back sHgbtiy fa “f 
second half of the year when, nor- 
mally, fewer people try to buy. 

□ □ □ 

Two modernist 1930s’ honses are 
on tho market. FJZ.S- J? r * e fv 
Yarke Rosenberg and Mardafi, now 
the Y-RJS. Partnership) designen 
Torilla in Hatfield, Htertfimdshire, 
when he was 27. Listed grade U'.it 
needs work to restore it as a 6®®J fa 
the between tne 

wars. Rum baft Sedgwick <0727-352 
384) asks around £220,000. 

In St John’s Wood, north London 
David Stokes built 5 Cochrane 
Street NWS in 1937 and has been 
there ever since. Now, though, it is 


Conservation 

It’s the mixture as before 


T here is a minor revolu- 
tion going on in the 
building trade. At the 
heart of it is a 
four-letter word, the 
roots of which go back even farther 
than those four-letter Anglo-Saxon 
words much favoured by British 
workmen. 

The word is lime. For approach- 
ing 20 years it has been much 
favoured in building conservation 
circles, but the problem has been 
one of converting the ordinary 
builder back to time, according to 
masonry consultant Bob Bennett 
Bennett r uns the T.imo Centre, a 
small enterprise dedicated to train- 
ing people in the use of this most 
aniriwit of building rnaterialn. 

“Man has been using lime for 
3,000 years,” he says. “Cement is a 
mere passing phase. Unfortunately, 
since the second world war when 
cement became widely known 
through its use in concrete defences 
not only builders but also private 
individuals have turned to it for 
repairs to traditional buildings. 

“Usually, this is all wrong. 
Almost all these buildings were 
built with limp mortar, which is far 
less harsh than cement, more for- 
giving and, above all, allows build- 
ings to breathe.” 

l.hnp is an the way back, thoug h 
It began in the mid-1970s with the 
start of a 12-year programme of con- 
servation on the west front of Wells 
Cathedra] in Somerset, and now 
there is a handful of experts who, 
like Bennett, run regular courses on 


mriug this nintprial At the I -Imp 

Centre, Bennett’s fortnightly 
courses attract private individuals 
as well as builders, architects, con- 
servation officers and other inter- 
ested professionals. 

In the Chil terns, building conser- 
vator lan Pritchett runs similar 
courses. Like Bennett, he slakes 
Bmp and supplies it to specialist 
restorers. 

“We seem to be gaining more 


enlightened clients on our courses 
all the time - especially surveyors 
- but we could still do with more 
builders,” he says. 

Near Stroud, in Gloucestershire. 
Woodchester Mansion Trust is 
using the unfinished Victorian man- 
sion there as a focus tor the revival 
of traditional building skills. The 
trust runs occasional courses on the 
use of lime mortars in stone build- 
ings. 

And, at Gosport in Hampshire, 
the Rngfiah Hpritagp Conservation 
training centre at Fort Brockworth 
also runs courses based on the use 
of lime. 

The key to the “back to lime” 
philosophy is the fact that old build- 
ings breathe. In the past, it was 
accepted that this happened 


because of the vapour-permeable 
nature of lime mortar, which means 
that moisture absorbed by the fab- 
ric emerged through the joints. 
Insert a modern pointing of Port- 
land cement in an old wall and 
damp is likely to stay in the wall, 
say the proponents of lime. 

“If a wall can’t breathe the result 
is often damage to brick and stone- 
work - or even to the whole wall." 
says Bennett “The answer, particu- 


larly in older buildings, is to replace 
like with like - which usually 

wiAarm limp. 

“People forget that until the com- 
ing of Portland cement in 1824 Bthp 
was In common use in the construc- 
tion of virtually all buddings. 

“The ancient Egyptians used it, 
the Greeks appreciated its qualities 
and, in this country, the Romans 
used it very widely, and many 
buildings right up until the out- 
break of war in 1939 were built with 
lime mortar." 

In the widespread move back to 
limp mortars, many builders still 
resist the trend, according to archi- 
tect Rodney Black of East Bergholt, 
Suffolk, who has been specifying 
limp mortar for work on t raditional 
b uilding s. 


Lime was used to make mortar 3,000 years 
ago. Now, it is causing a minor revolution 
in the building trade, says CHve Fewins 


“Many builders avoid lime mor- 
tars if possible because they are 
slower to lay than coment mortars," 
he says. 

In some parts of the country, 
however, their use has barely died 
out In Devon, where many of the 
older buddings are made of cob — a 
mixture of clay and straw - large 
quantities of lime were always used. 
Builder Kevin McCabe, of Colyton, 
near Honlton, is one of a Handf ul of 
builders who has always used lime 
on old buildings. 

For several years, he has done his 
own slaking. “It is a cheap, rela- 
tively quick process and you know 
exactly what you are going to get,” 
he says. In spite of the lime revival, 
however. It is stQl unusual nowa- 
days for builders to slake their own 

timfl 

“Lime has such a good track 
record. It should not be taken as 
read that all new building develop- 
ments are necessarily better than 
the original,” says McCabe. 

■ Information: The Budding Limes 
Forum, 2 Cross Cottage, HBddrngton, 
Oxfordshire 0X20 1BN; The Lime 
Cadre, Long Bam, Morestead, Win- 
chester, SOZl 1LZ Building conser- 
vation training courses. Fort Brock- 
hurst , cfo English Heritage Room 
528, Kegsign House, 429 Oxford 
Street, London W1R 2HD. 

LLP. Building Conservation, Hol- 
low Tree Cottage, Binfield Heath, 
Henley-on-Thames, Oxfordshire RG9 
4LR : Woodchester Mansion Trust, 1 
The Old Town Hall, High Street, 
Stroud, Gloucestershire GL5 IAP. 


LONDON PROPERTY 


LONDON RENTALS 



ST. JAMES' HOUSE 
OLD TOWN, SW4 



A substantial detached double-fronted Victorian residence 
with an attached coach house, beautifully presented with a 
carriage driveway and an impressive garden to the rear. 
Conveniently situated in this wide resi dential road ru nnin g 
off the Northside of Claphnm Common. Close to local 

mmmlriji i owollimt tmnapnrt hriKtiin 

into the City and West End. 

MAIN BOUSE 

DRAWING BOOM, DINING ROOM, 4 FURTHER RECEPTION ROOMS, 
KITCHEN /BREAKFAST BOOM 
PRINCIPAL BEDROOM SUITE- 
BEDROOM. DRESSING ROOM. BATHROOM 
GUEST SUITS: BEDROOM. DRESSING ROOM. BATHROOM 
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2/3 FURTHER BEDROOMS. FURTHER BATHROOM. 

UTILITY ROOM, WINE CELLAR, GARDEN ROOM /WORKSHOP, 
LARGE GARDEN. OFF-STREET PARKING. 

COACH BOUSE: 

DOUBLE GARAGE AND BOBER ROOM 
WITH LARGE GAMES ROOM ABOVE. 


FREEHOLD £876/100 


$ 








ItobOTl 4880738 Fmc 071 BM 7S41 


Tel: 071 2380174 Fkc 071 880 1875 


barnard 

marcus 


New conversion of four 
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All flats enjoy a southerly 
aspect, independent g3S central 
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Large studio flat £110,000 
(hie bedroom flat £99,950 
Two 2 bedroom thus at £399,950 
Lease 125 years 
Sole Agents 
Barnard Marcus 
36 Mnw Sr. LomoM WC1A UT 
Tel: 071 6362736 
Fax: 071 436 2649 


BURYWC1 taraWilMU 
rd Sq. Lux UMtar, portend Mode, 
ir. ML Lease BOO yrs 010,000 
I Marcus Tel: 071 636 2736 
4962MB 


London - Hampstead Area 
L ovely tree lined sued. Beautifully 
renomed fbt witb weicontag nraaphoe. 
4 Ik- iti once. daMc sued reception Kwm ti, 
dining rasa, krilcbon folly equipped, 
bathroom, ballway end 2 ropuafc wc. gee 
chi well proportioned room with high 
miinpc WeB mrizeained naming 
circs 1900. Located walking distance to 
shopping, transportation and resunmus. 
L e ascbokyPreehoid tiOe. Owner sale. Price 
£348£0Q. Will ako oomidex mill £500 pw 
elegantly formated, baby grand piano, 
fireptocc wiiUNb. 

TeL National :0234 391581 
Fax : 0234 391319 hfl : 44 234 391581 
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MONTPELIER WALK, SW7 
A picturesque period cottage 
presented in beautffii decorative 
order throughout In the heart of 

BoS^&S^Dmi^oom. Dining 
Room. Kitchen, UtSty Room. 
Small Garden. Freehold. 

Sole Agents. £575,000. 
WA EHi3 071-581 7654 


ONLY MINUTES FROM THE CITY. 
QUALITY APARTMENTS TO RENT. 


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venient to have a luxurious 
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so that travelling to and 
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arotet to iww «c israacron wnden wniu **cu to* jwutaeas $ 


ment at Hermitage 
Court, El, from just 
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just minutes from 
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Centred around 
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the Bovis Homes 
quality features supplied 
as standard include video 
entryphones, porterage, 
secure underground park- 
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kh cmtci >j re* « COM » raca nmumc mqw» 



For further details of 
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to rent, call our Sales 
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(24 hours). 

"^Bovis Homes 

wBiucwia.tBCMMEoraMiiiBu ruy. 


0 R li V \ i) 0 


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% m 

• Swimming Pools /Tennis 
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LEI DUflteHETS. UETON. QSDUD 


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Established since 1979 

Specialist in the Letting & Management of Residential Homes 
in Covent Garden, Soho, Bloomsbury, Holboro and Mayfair. 


Tel: 071 387 0077 Fax: 071 3S8 2504 


KENSINGTON/CENTRAL 

LONDON 

Largest selection of quality 
properties, £1 80-£1 500pw. 
From 3 wks to 3 yrs. 
Chard Associates 
071 938 2605. 10-7pm 


LONDON 

PROPERTY 


EATON MEWS NORTH 


Exceptionally Luge Belgravia 
House, in exclusive cobblestone 


cd 


mews.1 

decorated dining room and ! 

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USA 1-212-3164)027 
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IS YOUR CENTRAL LONDON 
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Please call for further de tails. 

Elizabeth Goddard 071 262 9855 


BUYING FOR WVESTHBfT? We Metrify 
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For June lists of widest selection 
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INTERNATIONAL 

PROPERTY 


Houston, Texas 


Prattgfciue 4000 acre Randt 
Excefer* Hwy Exposure 
Over 100 Coastal P&sturee 
12 Heines & Si mi&onin Equipment 
Horn & Cattle FscMra 
Ai-SaHey Realty 
713-870-8488, 840-8854 fax 


AUCTIONS 


FOR SALE BY AUCTION 

t ux fce pwrt rta mg M) 

2 1ST JULY 1 994 

Home A Bata A 6 acres, Magor, OwxnL 
Hatan Vmcyaid & Mod. Home & 34 
Acres 68 Acres - Riverside pasuc land, 
Wye VaOejr & Severe Estuary In Lots. 


BEVERLEY JONES & PARTNERS 
0291623822 


CASTLE: PALAIS VISCONTCBN 
Unique cm tto COte if Azar between 
Cannes xnd Monaco, 13 manna from 
Nicn aiiyort, owner rents on moodily 
bads bngo old domame, lags 
nfcepunwR. lounges* bdbiuL 

6 bedrooms each with own 
bmfareomAbereing, swimming pooL 
pot, voy old ren garden, paoorame 
■ea view, refined decoration. 

TO; (33) 939828.47. 

F*c (33)932127^9 


A/.I K IN I ! UN VI IONA L 


. CxmHsASaosufiqgAim 
Now b the time to bvy 

Aw Btg u u tMkaaVrwcrtpig* 
BrtxNWrrtW RirtflMu 'AsufltB 
- Vita.* Apes Newt Resale- ; 
Coaa&Gtasby ' 
LepriAdyteewamn^ppasiTStnif 


MONTE-CARLO 

MICHELANGELO 
one bedroom apartment 
• for sale, 52 sq. m. 

+ 19 sq. ul terrace, 
equipped kitchen, 

. parking space, 
3^00,000 FF. 


7/9 Bddss MonUns MC 98000 Mreaco 
yTd 33-92165 939 fax 33-93 SOI 942 J 


COUNTRY RENTALS 


ODIHAM 

A 6 bcdnXRD detached coah y 
in a repob mnl localim. AvxBabte 
fmrecdtaltantocrf. Be property kro 
a qilh level, triple npect ratting room. 
V«y bige idtcbca with AflA pccatanac 

twnf pnfrtqg winwwl £2^500 p p m 

For farther details on tkls ud »"" " y Nhw 
propenfaa xvxiWde ooarea Aeon one 
BABTLEV W1NTK&T (BiWtSI 

•252 842795 


GAMES, CROOC OK OARDBS. £ bad. tiL 
6Baq m. Hus 18 aq m. SOx. Jacbpttrm 
• w*h aan vtaes. SROnoMMig mt. M KB. 
Oan Sscure FMnp. Strtmftie poet Rrtt* 

deta in B^di owner. , u luBan m tag. 
Tel (33] 33 46 2S 12 -_ 

«iBmsEr-9m» acoupahvltd 
4 SeuOi ESftanadb, Bt Pnr Pert. Omni ttw 
tatapcfs toga* Independe n t Estate AgaM* 
TBt 0461 714445. Fax W81 713811. 

COSTA on. SOL PROPERTIES Uwttata 
OMch. For bdom nulu t i A Prtoevst rkig 
081 9033781 ■nsftnu.FnaBQB . . 

fflOTCH PROP ERTY HEWS. ftsa l*mWy 
Old, near end eld prep^ tagal coto an ssc. 
Aak far yow free copy «w 061-&42 09PL . 


Switzerland 

For safe, in AN2S&S, VALAIS, ray 
■ttraodnt, sonar epertreeil. 100 sq.m. 
3 tatoaw. Sfc barks, briau}, nmilml 
view. SF 460000. Yaniem ako boiU yaat 
awn private chalet; due to resort. 3/4 
bedroo m s, groat view over Bhoae vaQey, 
MhorisrtiM Ear role ro lotdgnen, from 
SF 450000. 

Wwci Grom owner 
FOtatUmmiCmnl 
U4I2UUUU Dro: 41 22 310 46 33 


BARBADOS: ST. TAMira 
-Qotstand u i g h c arhfr a m 
Famfly Home, 8 bed/Acrc plot, 
. Located on the spectacular 
Sandy lxite Beach. 
Panoramic seariews. 

Asting price £2 ^million. 

Tel/Fax: 071-352-4567 


■nttCAKV ta monastery on MO tap. 
PronOflta^projrewHo twelve roaSr 

. m at iPWkxiearotmdedbyionwt 

tec ttdy 677^8244 Tal 061 642 8210. ^ 

TWBUhe. 

. neeimpervaeeateemeimhiaL Rksm 

knnwuvnb 





T 












BOOKS 


An outsider who never quite made it 

Malcolm Rutherford on the politician from Birmingham who exercised influence without much power 


T be life of Joseph Chamber- 
lain was so fall and varied 
that his official biogra- 
pher, JX. Garvin, needed 
15 years to complete the Erst three 
volumes, then gave up. Julian 
Amery picked up the baton and 
took attfttirar 20 years to complete 
the story. Amoy's work was pub- 
lished in 1969. There have been 
other, shorter books, but the long, 
detached study comes only now 
from the North Amm-tam historian, 
Peter T. Marsh. 

One can see the difficulties. 
Chamb erlain conforms to no recog- 
nisable pattern in British politics. 
He grew UP in London, bat made 
his name in Birmingham. He left 
school at 16. but was already pretty 
well educated. His father put him 
into business, in Birmingham be 
became known as the screw king, 
because it was screws that bis com- 
panies manufactured. He was argu- 
ably the most successful mayor in 
the history of British local govern- 


ment. Under his stewardship in the 
mtd-l87Qs, no coma or institution 
in Binningbam was left Trntnnched 
by his reforms. 

Then he went into national poli- 
tics. For a time be flirted with New- 
castle, and had a fling at Sheffield 
where he faded. So he fell back on 
Birmingham which provided his 
political base for the rest of his life. 

The political society of the time 
did not understand such an out- 
sider. London’s reaction to Cham- 
berlain was distinctly snobbish. 
There was a terrible row about bis 
putting up bis relatives for the 
Reform Club. Tears later, when be 
was Colonial Secretary and in the 
absence of the prime minister had 


to entertain the Kaiser at Windsor 
with the Queen, a foreign office 
mandarin noted; “We can only hope 
that Birmingham ha* not given 
himself away.” In short, he was 
thought to be unsophisticated. 

His political career, though it had 
some peaks, was turbulent through- 
out Some of tiie troughs, and the 
reason why he did not make it to 
Downing Street, were undoubtedly 
of his own making. Chamberlain 
was i nitially a radical liberal, much 
more so than Gladstone. But, as 
Marsh demonstrates, it was more 
bis personal rivalry with Gladstone 
rather than a differ ence of political 
belies that led to tbe two men fell- 
ing out. Chamberlain could have 


JOSEPH CHAMBERLAIN: 
ENTREPRENEUR IN 
POLITICS 

by Peter T. Marsh 

Yale Unirawiy Press. 725 pages 


sought a compromise an Irish pol- 
icy; instead he became a Unionist, 
Gladstone stuck to Home Rule and 
tbe party split. The other result was 
that Gladstone stayed as leader. 

Chamberlain was to change his 
Tfiind again, and damage other par- 
ties, on other subjects. He became 
tbe great imperialist and advocate 
of tariff reform, having once been in 
favour of free trade. He may thus go 


down as a wrecker rather than as a 
pnittirfan of achievement Yet there 
is something in the phrase that he 
exercised influence without much 
power. Most of the social reforms of 
tbe late 19th century had something 
to do with him: education, pensions, 
compensation for industrial acci- 
dents. He was politically estate in 
realising that the Conservatives 
couH be a reforming party because 
they drew support from both ends 
of the social spectrum. 

There were more tangible monu- 
ments. Chamberlain founded the 
University of Birmingham. As Colo- 
nial Secretary he was a great pro- 
moter of tropical medicine. He was 
portly responsible for tbe founding 


of the state of Nigeria, 

True, there are murkier sides. 
Even now it is stm not dear b ow 
far he gave implicit encouragement 
to the Jameson raid in South 
Africa; certainly he gave a very 
indiscreet briefing to the African 
correspondent of The Tints, who 
had a direct Use to Cecil Rhodes. 

On the whole, however, Chamber 
lain was his own man. Winston 
C hu rchQl wrote or him in Great 
Con te m p or arie s In 19®?; hi British 
affairs "Joe was the one who made 
the weather". Marsh adds percep- 
tively. “But no man could change 
the climate". The rest of the coun- 
try was not like Birmingham. 

Chamberlain’s entrepreneurial 


career peaked in the mtd-13tt* jut 
as the US and Germany were begin- 
ning to overtake Britain's tedartrtal 
capacity. 

In politics he thought that the 
development of the empire could be 
u»d to r&ta.tbe standard of Itvtng 
of the British working das*, hi the 
most devastating comment «f aQ. 
Marsh that the industri- 

alist turned statesman thus over- 
looked the technological advances 
being made elsewhere. Ha turned 
his hack cm Innovation. - 

The truth is that Chamberlain 
had the good German virtu*. fte 

admired Bismarck for hts social pol- 
icies and bttttf to education, but 
became an Imperialist partly 
because he did not want. British poe- 
sessinnsoveiaMS to p»»» to the Ger- 
mans. Chamberlain remained «**n- 
tially a toner. the nicest story about 
him is that muskafty he mu so 
tone deaf that even as the arch 
man of empire, he could not recog- 
nise the national anthem. 


Versailles to 
Savile Row 

Brian Sewell takes the suit to task 


T ins genteel history of the 
suit, modelled on tbe limp 
volumes of belles lettres 
and collected aphorisms 
that in the 1920s littered the lavato- 
ries and lesser bedrooms of the 
country house, ends on a “Naughty- 
naughty, tut-tut" note - “it is," 
avers the writer, “rude to be Ill- 
dressed. It is particularly rude to 
dress squalidly at the opera...” A 
three-button-coated dark suit from 
Marks and Spencer is strongly rec- 
ommended. 

As one who weeps at almost 
every opera, I should look and feel 
twice as foolish in a suit as I do in 
the crumpled sweater that engages 
Master Amies’ despite. A suit 
demands a stiff upper lip and a 

straig ht hark, but Mhwi demands 

that I be reduced to a sobbing heap 
slumped in my stall, for that a 
suit is far from suitable. 

The Master traces the history of 
coat, trousers and vest from the 
Versailles of the Sun King to Savile 
Row; he touches it with great 
events and famous men as taste 
swings this way and that across the 
Channel, with fops and clowns and 
macaroni, with BrummeR and tire 
Comte (FOrsay, and with assorted 
asses playing Prince of Wales. In 
1934, within these pages, the history 
of the suit becomes the history of 
Hardy Amies, and Burton, Hep- 
worth, Tommy Nutter and the 
flashy Mr Fish swim into view. 

The thread breaks from time to 
time, giving way to disconnected 
jottings and asides an class, tradi- 
tion, the National Trust, Country 
Ufa, dnffndiig and dairies - "Latin 
should be taught intelligently and 


interestingly in every school^ the 
high-toned English too breaks 
down, gentlemen become gents, 
their suits gear, and we “get bade to 
basics” with strictur es on the shirt 
and tie and coy diversions into 
underpants. 

The repeated justification for this 
book and the life and work of the 
Master is the snobbish refrain that 
the suit is the dress of the gentle- 
man - but it is also, the doubter 
most observe, the dress of the poli- 
tician who wishes to be mistaken 
for a gentleman, too easily camou- 
flaged by expert tailors, manicurists 


THE ENGLISHMAN’S SUIT 
by Hardy Amies 

Qpnrtet £12. 120 pages 


and the hairdresser (Mrs Thatcher's 
cabinets were full of them), and for 
the businessman it is a uniform. 

Politics, business and the London 
club secure the fixture of the suit 
well into the next millennium , 
prophesies the Master; as one for 
whom it seems the most grotesque 
and imp ta ntimT of garments, quite 
hopeless for walking dogs, ttstMifag 
to opera, eating in cool comfort, 
driving a car, painting pictures or 
enduring travel in an aeroplane, I 
wish that he would turn his 
attention to other forms of formal 
dress and I commend the cassock 
that I wore as altar boy, a thing 
of tailored dove grey silk, a 
thousand buttons from throat to 
ankle, a touch of lawn about the 
neck - no puzzle-bugger jacketed 
suit could ever match its easy 
elegance. 



A smaB chSd gut transfixed at lha shrine of Saint Mfamia hi Bridn. GHofK on* <4 187 cater pbotograerfH from FartMi and fttuate of Spate by Cristina taefc Rod«a filter N> Atom MlJBtpegM). Ms Oarcfa 

Rodwo, p orf a sao r of p hotogr a phy at the Univer si ty of Madrid, has u pl u id flu rich farioti of wdrt pagan ritol and wlwn r tffltoui ifa wWi he parade rfjwlw. weaken, pe nltetf e a nd c re wre to an 

apparently a n cfl —T cycle at c e l eb ra t i o ns - The poet and novsbtJ, M. C ab ritw o gooafcf pr o » id — tbe totrodnc ttei and a map ehows the facetious of tbe Wtoye p h oto yeph e rt , ante at Hum unknown to tourtote. 


African journeys 

J.D.F.Jones discovers a classic-in-waiting 


D an Jacobson has 
taken time off from 
his crafted and dis- 
tinguished. novels 
to go home - home to Kimber- 
ley, the diamond town, and 
to travel up the “Mis- 
sionary Road", that ancient 
African route which slips 
between the Kalahari and the 
Boers and finishes at tfa Zam- 
besi and the 'Victoria Falls. 

It is not one of the region's 
finer scenic routes, featuring 
as it does countless miles of 
thorn, sand and scrub, so 
Jacobson has to explain that 
be was attracted to the journey 
in part by its historical inter- 
est, in part by its personal ref- 
erence “that half-known, 
half-feared region which had 
lain forbiddingly on the very 
doorstep of the Africa I had 
grown up in". We are to be 
taken back, then, to the scene 
of his early - brilliant - nov- 
els, before he graduated to a 
London professorial chair and 
ambitious novels on Old Testa- 
ment themes. The best thing in 
The Electronic Elephant is his 
description of the Northern 
Cape veld, which sends us 
back after all these years to A 
Dance m Ike Sun and its 
images of a furious Afrikaner 
isolation. 

The route to the north was 
indeed important to the 19th- 


century missionaries, 
were in the vanguard d 
nial conquest The L 
stone Liquor Stall” in i 
beU, near Griquatown, 
reminder of the pr« 
ffittius of the tale. It is a 
argues Jacobson, Uttered 
toe wreckage of suceessn 
ologies: European tmperl 
Boer nationalism, Vicl 
racialism, apartheid, A 
liberation, Marxism - 
Christianity, which atan 
sarv b?ed, and prospered, 
lfecullar African styles. 


newauthors 

^Esaas- 

WHgVAPRESi! 


lovely scene in the Kuruman 
mission church the secular- 
Jewlsh Jacobson and his athe- 
ist wife are the only congrega- 
tion at the Easter service: 
“Making sense of my presence 
there was impossible; impossi- 
ble also sot to feel the stran- 
gest mixture of wonder, embar- 
rassment, mirth, fraudnlence, 
compassion for our hosts, even 
a kind of protectiveness 
towards them". 

This is, as you would expect, 
a journey informed by the nov- 
elist’s eye. He encounters 
Bushman soldiers brought 


THE ELECTRONIC 
ELEPHANT 

by Dan Jacobson 

Hamish Hamilton £17.99, 
373 pages 


HAPPY SAD LAND 

by Mark McCrum 

Sindair-Stevenson £16.99, 
455 pages 


INNOCENTS IN 
AFRICA 

by Drary Plfer 

Grama Books £15.99. 338 pages 


back for their safety from 
Angola by the South African 
Defence Forces whose fore- 
bears had massaoed them to 
near-extinction (it is, as he 
says, “surreal"); he meets a 
group of far-Right Afrikaners 
who are preparing for their 
own ethnic, onscreen state; he 
returns, always, to the history 
of these obscure territories; he 
notes that it was platinum as 
well as tourism which trans- 
formed the economy of Presi- 
dent Mango pe’s Bophuthats- 
wana; he has the expatriate 
white South African’s gentle 
scepticism of the future (“A 
‘non-raciaT South Africa? One 
raigfrt as well talk of breeding 

a tosher p^g...") 

When he moves out of the 
Republic he i$ less confident: 
be do es not respond to Bot- 
swana and is 01 at ease in Zim- 
babwe. The single map is inad- 
equate. the absence of an index 
is regrettable, and he can’t 
spell Mmabatho. 

* 

Mark McCrum has published 


the story of another journey 
around Southern Africa. The 
scheme is simple: McCrum 
spent time in Botswana as a 
teenager in 1977 and liked it; 15 
years later he went back. Cue 
to a pleasantly readable 
account of his travels and his 
undramatic adventures. 
McCrum has a good ear for dia- 
logue and does not take him- 
self too seriously. Sappy Sad 
Land makes an interesting, 
relaxed, unessential read for 
anyone interested in that part 
of the world. He can’t spell 
Van Zyl SlabberL 
★ 

The best of the bunch, the sur- 
prise, the curiosity from out of 
the blue, the clasrio-in-waitzng, 
is Drury Piter's Innocents in 
Af rica. P ifer is an American, a 
playwright who was brought 
up in Southern Africa in the 
1930s as son of a mfntng engi- 
neer who was employed on the 
Rand, in Kimberley, in 
South-west Africa, and then fn 
Kimberley again. 

Pifer has produced an 
entrancing memoir of child- 
hood in pre-apartheid days. 
This book, written with superb 
precision and elegance, its 
recall of detail based on access 
to his beloved mother's letters 
home, is utterly fascinating 
about the South Africa of those 
prowar years, yet it is more 
than this, it evokes and recre- 
ates the intimacy of the life of 
a happy family of balf-a-cen- 
tury ago. The feet that they 
were Americans gives a unique 
view of the English-Afrikaner 
tensions of those formative 
years, but the deeper subject is 
its poetic recapture of the expe- 
riences of childhood which 
most of us never recall in more 
than fragments. 

The Pifers went back to 
America at the end of the war 
Tt didn't occur to us that this 
Journey out of Africa was the 
last time we would find our- 
selves together and happy, day 
after day, perfectly matched in 
our nmtstop prattle and famil- 
iar love . . ." The boy never 
went back. 

Innocents m Africa deserves 
a much longer review: Let this 
be a shorthand recommenda- 
tion of a wonderful book. He 
can't spell Japie. 


Society versus self 

A-C. Grayling considers rights and responsibilities 

that membership of society 


A chord is immedi- 
ately struck by Set- 
bourne's claim that 
the contemporary 
social order is corrupted by its 
overemphasis on rights and 
demands, and by his call for a 
new order based on civic bonds 
of duty. No doubt many will 
immediately see the welfare 
scrounger as the paradigm of 
what Selhonrne attacks; but 
his views apply equally to 
those whose self-enrichment is 
made possible by the protec- 
tion of society, but who resent 
contributing, whether through 
taxation or otherwise, to its 
common good. 

Selboume’s diagnosis of soci- 
ety's present disease is telling, 
and although his prescription 
for its remedy is not novel, it is 
timely and compelling. In an 
earlier work. The Spirit of The 
Ape, he described the collapse 
of society into a "phantom 
order” from, which, meaningful 
social relationships have van- 
ished. In this new work he 
argues for a revitalised civic 
order based on principles of 
duty and obligation. Both the 
right and the old left in politics 
are roundly criticised far their 
role in the collapse of society, 
and Selboume offers in their 
place what he calls “social- 
ism", written with a hyphen to 
show that it is not the old 
socialist theory which “reduces 


mankind to the level of the 
barrack-roam”, but a reawak- 
ened civil polity which opposes 
the greed and. seif-interest of 
individualism, tbe primary 
cause, in SeBtourne’s view, af 
the wreck of our civil polity. 

Society, Seflxrame argues, is 
in a state of collapse and “dis- 
aggregation” because it has 
espoused an amoral politics of 
“dutfless” rights and freedoms. 
Emphasis on rights without 
duties, demand-satisfaction 
and self-realisation through 
unfettered freedom, has cre- 
ated a moral vacuum. When 
tbe dutiless individual calcu- 
lates how to act, mere self 
interest is his only criterion. In 
such circumstances no civic 
order flourish. 

Selboume’s solution Is to 
reassert an argument which 
both the liberal tradition and 
the common law have long 
recognised, but has been pro- 
gressively ignored: that people 
have duties to themselves, 
their fellows and society, 
which are folly the moral 
equivalent of their rights. This 
“principle of duty” Is an 
expression of the constraints 


places upon individuals. It 

irten tiffed thftir nh ^gaHnns and 

ways of ensuring that they axe 
observed. 

Our duties include, says Sel- 
boume, pursuing a livelihood 
and making ourselves 
informed; caring for the mem- 
bers of our families; respecting 


THE PRINCIPLE OF 
DUTY 

by David Sdbourne 

SlncIairStcraison £15, 288 pages 


and helping others; and 
"bestowing pains upon the 
preservation of the civic 
order*. There Is also a duty to 
conserve natural resources and 
society’s historic patrimony, 
and to fulfil obligations of pub- 
lic duty such as undertaking 
military service when neces- 
sary, sitting on juries, and con- 
tributing to public funds by 
taxation. Selboume proposes a 
variety of sanctions for those 
who fail in. these duties, based 
on loss of rights and privileges 
in various ways including 
those already familiar. 


Some, especially on toe left 
in politics - Selboume’s own 
natural terrain - will find 
some of these ideas reaction- 
ary. They have certainly been 
unfashionable for long enough 
to make their revival a nov- 
elty. Politicians on the right 
occasionally table-thump about 
duties and respect for society 
when addressing Party Confer- 
ences on law and order issues, 
but never when talking about 
taxation, long-term invest- 
ment, or public spending on 
education and health. Mrs 
Thatcher famously denied the 
very existence of society, sug- 
gesting thereby that it is the 
individualism of the right 
which Is most dismissive anrf 
destructive of social ties. 

But Selboume is correct: 
only where there is a strong 
sense of a civic bond between 
people, with an having a lively 
mutual sense of values, can 
there be a flourishing and pro- 
gressive social order. A model 
is provided by memories of 
wartime, or at least toe more 
nostalgic versions of its cama- 
raderie, its sense of community 
and cooperation. However 


dewy-eyed the Ideal might be. 
one cannot call it unworthy. 

There are cf course problems 
with Seflmunm's picture. IBs 
views are right; toe difficulty 
is how to implement them. 
Society is so uneasily plural 
and fragmented, its -members 
so divisively sold on the 
supreme value of getting and 
having; how can one be san- 
guine? Selboume’s vision is 
cbm at which a pre-industrial 
city-state might aim. if its lead- 
ers and teachers were honest 
and its economy such that 
competition among its mem- 
bers rarely involved conflict 
and anxiety - the twin spec- 
tres of toe market place, where 
only some can be winners. But 
can vastly populous, fissipa- 
rous, strident modem societies, 
brought up — at least during 
this last decade and a half - on 
a particularly naked version of 
the politics of self-interest, 
hope to change? 

Hostile critics will claim that 
Selboume is being self-impor- 
tantly oracular in this book, 
offering it as a gospel for an 
anxiously waiting world. But 
charges of pretension will be 
misplaced; he has tried to 
think his way not just into the 
theory of a better social order, 
but of its practicalities. There 
Is much in what he says that 
demands and deserves very 
careful thought 


M argaret Forster's 
novels catalogue 
the anxieties of 
family life: con- 
flicts between generations, the 
impact of Alzheimer’s disease, 
the rights and wrongs of 
mixed-race adoption. Her new 
novel marks a shift in empha- 
sis, moving from tbe internal 
politics of individual famflipg 
to toe impact on town of out- 
side events over which they 
have mi control. 

Joe, an introverted 15-year- 
old living in a quiet northern 
town, is the victim of a vicious 
and unprovoked attack by two 
youths. Forster holds back the 
nastiest detail of the assault 
for around a hundred pages, 
placing the reader.in toe samp 
position as the confused rela- 
tives who observe Joe’s trau- 
matised state without fully 
underetanding it. 

As Joe’s parents, Harriet and 
Sam, struggle to help him 
recover, another family in a 
nearby to wn is feeing a differ- 
ent ordeaL Sheila is the grand- 
mother. in effect the mother, of 


Fiction/Joan Smith 

The limits of love 


one of the teenagers convicted 
of the attack; she brought him 
up after her own. daughter 
died. Thus Forster sets toe 
scene for a novel about mother 
love, and about the fierce pro- 
tectiveness both women feel 
towards the boys they have 
brought up - a protectiveness 
which, far from helping thwn 
to understand what has hap- 
pened, actually gets in the way 
of it 

For the heart of this novel, 
unusually for Forster, is not 
illumination but its opposite. It 
has a fly-on-the-wall quality, 
exposing the women’s inner 
lives and even bringing them 
together in an ineffectual 
attempt at mutual understand- 
ing. Yet all Forster seems to be 
offering is a statement about 
the limits of unconditional 


MOTHER’S BOYS 
by Margaret Forster 

Chatxo & Windus £14.99, 

313 pages 

THE BINGO PALACE 

by Louise Erdrich 

Flamingo £14.99, 274 pages 

love. Clearly Mother's Boys 
does not set out to offer resolu- 
tion, or even plot development, 
but even as gifted a writer as 
Margaret Forster is not able to 
overcome the longueurs inher- 
ent in a novel whose keynote is 
bewilderment 

There is no lack of plot in 
The Bingo Palace, tbe fourth in 
Louise Erdrich' s quartet of 
novels about the Chippewa 
Indians of North Dakota. The 


book is essentially a love story 
in which a young drifter, Lip- 
sha Morrissey, competes with 
Lyman Lamartine, his boss 
and half-brother (or possibly 
his half-unde), for the love of 
Shawnee Bay, a gifted seam- 
stress who is also the mother 
of Lyman’s illegitimate son. 

novel is set on an Indian 
Reservation whose inhnhi tnw^ 
simultaneously live in the 
mundane present (Lyman 1$ 
the owner of tbe Reservation’s 
chief attraction, a bingo hall) 
and a mythic past Erdrich has 
written about this past in toe 
earlier novels, demonstrating 
the way in which the Indians’ 
continual creation of myth - 
malting themselves larger than 
life, endowing themselves with 
supernatural powers - was a 
means of compensating for the 


The problem with Tfo 
Palace is that ft dlsp] 
ironic detachment, 
seemed in the earlier \ 
celebration of traditic 
feds like whimsical fo 
we are continually pr 
with characters who re 
die or who possess t 
powers. Brdrlch’s i 
strains after effect, in 
mystical interpretath 
everyday events like bii 
death: “The red regie t 
the mother and her bob 
hope of our nation. It j 

SSS 5 ** 1 snags, it fee 
bolds. How it holds. 1 ' Tfa 
the more dlsappc 
because Erdrich la a t 
writer. Perhaps she ha 
up against a present wb 
“ ,QS ® to bw «l» 
baa fallen back on a ns 
style whose Umitatio 
now obvious. It wUl t* 
eating to see what *to 
now, and whether s 1 
escape from her self-< 
cul-de-sac of Resenmttoi 







Jg*j*NC^LTlM^WEEKENP JUNE 25 /JLTNE 26 1994 


ARTS 



W e all know that 
Pop stars spend as 
much time in 
court as in the 
stodlos and that 
there are few artists who have not 
at some time fallen oat with their 
record companies over royalties 
and advances. But could the «n p? 
thing happen In the classical field: 
coaid Pavarotti throw a George 
Mlebael-style wobbly and take 
Deccfl, his recording company, to 
court? 

In general, the classical depart- 
ments of the record companies are 
considerably more ratified environ- 
ments than their pop counterparts: 
there is still an over-riding co mmi t, 
mart to art for art’s sake. Profits 
are perceived as less important 
than the wonderful creations 
they are laying down for post eri t y . 
In practice, this has meant that the 
classica l depa rtments of the large 
record companies are loss-making 
and they have been subsidised by 
the more lucrative pop sections. 

The rules that govern 
music recordings are, in most 
cases, the complete opposite of the 
cnt-and-throst workings. of the pop 
business. It is the classical artists, 
especially the handful of estab- 
lished divas and maestros, who 


Why maestros don’t throw wobblies 

Antony Thornaroft explains the different rules governing classical and pop recordings 


have the record labels over the 
fin an ci al barrel. When the maestro 
coughs, the record executives jump. 

In pop, major stars tend to earn 
most of their fortunes from their 
records and use live performances 
to promote the sales of albums 
whereas a prestigious record con- 
tract is a useful promotion for the 
source of the real money in classi- 
cal music - the concert balls and 
the stages of the opera houses. A 
handful of Mg name stars - Pavar- 
otti, Domingo, Kiri tie Kanawa, etc 
- have quickly learned to exploit 
their commercial appeal and moved 
out of the opera house clique into 
the entertainment media, with vast 
open air concerts, emphasising the 
superior earning potential of the 
live performance for the classical 


In pop, talent scouts scour the 
country in search of new acts 
which they strive to exploit quickly 
during the brief period or their 
fashionable shelf-life. In classical 


music, companies like Philips have 
been known to sign up young tyros 
and then hold them in creative sus- 
pension for years until they feel 
that their musical skills have 
reached a sustainable pitch. 

They might then nurse them, and 
their loss-making recordings, for 
many more years until concert per- 
formances have finally delivered a 
revered reputation. Classic con- 
tracts inevitably tend to be for long 
periods, with the knowledge that 
when the breakthrough comes, 
sales tick over for decades. Most of 
the annual revenue on the classical 
side comes from recordings made 
long ago. 

In pop, companies jealously 
guard their artists and are reluc- 
tant to let them record for rivals 
while top conductors and classical 
soloists take periodic “holidays" to 
matn occasional albums with com- 
petitors. Classical companies accept 
the tradition of lending artists to 
other labels. 


In pop, record companies want 
their artists to keep rimming out 
repeats of their last bits. An estab- 
lished classical artist, however, can 
virtually perform what he or she 
chooses and there is a greater 
reluctance to force artists into the 
studio to complete a contract If the 
inspiration has gone, the label 
accepts the loss. 


R ecord companies have 
regarded their classi- 
cal subsidiaries as 
cultural icons ensur- 
ing prestige rather 
than profits, which take years to 
accumulate, and much depends on 
the good personal relationship 
between artists, agents and record 
company personnel. Loyalties are 
generally enduring: Pavarotti has 
been with Decca for thirty years. 

Classical albums might sell annu- 
ally in their hundreds, rather than 
the hundreds of thousands of a pop 
hit, but they keep on selling. The 


£500,000 recording cost of a major 
opera might be amortised over 20 
years. Advances are generally low 
- £5,000 for a newly signed artist - 
but there are no deductions. A new 
pop act might be dazzled by a 
£250,000 advance but by the time 
the cost of studio time, promotional 
video, and marketing have been 
deducted there is often little left 

Unlike the pop industry, the clas- 
sical world is selling repertoire 
rather than a name. Stars are 
important - on their broad backs 
the record labels hope to off-load to 
the shops the low priced, economi- 
cally produced, recordings from 
eastern Europe and elsewhere, 
which supply music rather than 
masterpieces. But the serious 
enthusiast of classical music boys a 
sound rather than an over-hyped 
reputation. 

There have been whispers that 
the gentlemanly idiosyncrades of 
the classical companies are under 
threat and the emergence of Sony, 


Georgq Michael’s label, which 
acquired CBS, has caused some 
unease. Its Japanese management 
has a passion for classical music 
and poured milli ons into building 
up the American record company’s 
rather lack-lustre classical cata- 
logue. There was also a spell of 
unfamiliar “poaching” from other 
labels and advances were inflated 
throughout the classical world. 
Some of Sony’s more costly com- 
mitments sadly bade fired - both 
Von Karajan and Horowitz, lured 
from DG, died before they could 
record for their new masters - but 
the new Sony list Is impressive: 
Maazd, Mehta, Abbado, Muti, Bar- 
enboim and Ginlini, and the Berlin 
Philharmonic. The company has 
yet to translate its investment into 
an increased share of the market 
The sudden phenomenon of the 
classical hit also caused ripples. 
The money men at head office 
received a Jolt when Pavarotti and 
the Tenors, Nigel Kennedy, 


WEEKEND FT XXI 


Gorecki, Tavener and, this year, 
Spanish monks chanting the Gre- 
gorian ritual, suddenly started to 
sell in pop-like proportions. Bnt 
excited board room speculation 
that classical music could be the 
much-needed new musical craze 
were soon scuppered by sales fig- 
ures. Even in recent years classical 
music has never managed to rise 
above 9 per cent of total record 


Most classical artists will still be 
more Interested in developing a sat- 
tefytngty long creative career than 
cashing in their skills. The very 
limitations In the size of the busi- 
ness Inhibit financial excess. Spe- 
cialist record labels, like Conifer, 
which attracts artists who share its 
interest in pelting interpretations 
of the classics, know that they can- 
not afford to embark on an auction. 

Agents, too, want long careers 
for their artists: not a pop star’s 
brief hour in the spotlight. Joeske 
Van Walsam protects his artists 
from signing recording contracts 
because he feels they have not yet 
achieved the required maturity. 
Pop music sold its commercial soul 
to the devil decades ago; In classi- 
cal music there is still some integ- 
rity. That is one advantage In being 1 
a minority taste. 



Off the Wall/Antony Thorncroft 

Face-lift for listed 
National Theatre 

O n Thursday Heri- He also gave tentative backing been meticulous, for anoth 
tage Secretary Peter for the Idea of a major festival disaster could set back t] 
Brooks declared the mi the lines of the 1851 Cheat price recovery in art f 
National Theatre cm Exhibition . Surely no tii pa another year. 


Arch Higgins and Jenifer Ringer in New York Qty Bailees ‘Correlarione’ by Miriam Mahdarlant, part of tile company’s Diamond Project 

Dancing into difficulties 


ncIi L 


American ballet companies are losing their way, says Joan Acocella 


L ast December The 
Red Shoes, a musi- 
cal comedy based 
on the world’s 
most famous ballet 
movie, opened and dosed an. 
Broadway. It says something 
about the current state of bal- 
let in New York that, a few 
months later, both of our 
major ballet companies were 
found serving up the funeral 
meats cold. At American Ballet 
Theatre, one of the spring sea- 
son's featured offerings - 
indeed, a trumpeted event, 
with five performances added 
("by popular demand") before 
it even opened - was the silly 
little ballet that the modern 
dance choreographer Lar 
Lubovitch bad created for that 
musical. 

Meanwhile, the star of The 
Red Shoes, Margaret mmann of 
the National Ballet of Canada, 
apparently no sooner got bade 
to Toronto and fed her cat than, 
she got a call from New York 
City Ballet Not to be outdone 
in the Red Shoes salvage 
depa rtment NYCB invited her 
to dance three guest perfor- 
mances during the spring sea- 
son. 

A glamorous past, an aimless 
present feeding off that past 
while trying to figure out 
whether there Is going to be 
any future - that right now, is 
the story of ballet in New 
York. 

In addition to The Red Shoes, 


~!kit iu Ufth ■ 


ABT dredged up Antony 
Tudor’s 1963 Echoing of Trum- 
pets, a highly sensationalist 
anti-war ballet (Nazis, gang 
rape on point) and produced 
James Kudelka’s Cruel World 
(to Tchaikovsky’s “Souvenir de 
Florence”), a highly sensation- 
alist new ballet not about war 
but about how many slam- 
bang gymnastic pas de deux - 
with the woman spun, swung,. 
Dung, caught at the last possi- 
ble second - you can pack into 
one ballet Six, as I recall 


any interesting dances. The big 
duet for Clara and her Nut- 
cracker is an almost comically 
ungainly number. The night I 
was there, the excellent danc- 
ers Ashley Tuttle and Gil 
Boggs looked as thou gh they 
were afraid they were going to 
be killed. 

While ABT invested most of 
its resources in this big, bad 
production, New York City 
Ballet put its eggs in twelve 
little baskets. In 1902, the com- 
pany staged a festival called 


The complication ballet is 
descended from one aspect of 
George Balanchine's work, as 
reinterpreted by hJs successor 
as NYCB director, Peter Mar- 
tins, and it was Martins’s con- 
tribution to the Diamond Proj- 
ect, Mozart Piano Concerto. 
that provided the purest exam- 
ple. fa the slow movement, the 
principal dancers had so many 
niceties to cope with - turns 
toted and twisted and embel- 
lished and reversed halfway 
through - that they could 


An aimless present , feeding off a glamorous past while trying r to 
figure out the future , is the story of ballet in New York 


. ; K O SV Y. N O K 



But the major event of ABTs 
season was a new Nutcracker, 
choreographed by company 
director Kevin McKenzie to a 
libretto by playwright Wendy 
Wasserstein (The Sisters Rosen- 
swag). Like so many Nutcrack- 
er-revisers, Wasserstein has 
made the ballet more rational, 
more up-to-date. But above all 
what she has done is make it 
more complicated. 

This ballet has thing s no 
Nutcracker has ever needed 
before: unicorns, Jewish jokes, 
four ballerinas. Meanwhile, the 
things a Nutcracker does need 

- a tree that grows, a battle 
that starts with the battle 
music, a party scene where 
you can tell who the mother is 

- it doesn't have. Nor are there 


ST. JOSEPHS 
HOSPICE 

MARE ST. LONDON ES 4SA 
(Choky ft* N°- 231323} 

Dear Anonymous Friends, 
You did not wish your gits 
to be spoiled by human 
words of thanks. Their 
value gleams In the untold 
rehei you sUenUy provide. 

We have honoured your 
trust, and always win. 

Sister Superior. 


Aurcfco 
ewoHMi Wk 

imcmnunwiHiB wiM W ■ 
Luwow-wgwa-iwmni**” 
MIBWWW 

HWMMmaeBffli 
auwicw mis ouoN|MMoioiK>mn 
wru «wvw»h* 

T|U«.pe»WWtl*IN«(»W|l | *“ 

aowerwe imowtonwow 


the Diamond Project, In which 
various choreographers were 
asked to stage new ballets on a 
low budget 

This year, the Diamond Proj- 
ect was revived - the company 
now says it will be a biennial 
event - and, as before, a great 
range of choreographers were 
invited, veterans and tyros, 
company insiders (Damian 
Woetzei, Miriam Mahdaviani, 
Robert LaFosse, Richard Tan- 
ner, Peter Martins) and outsid- 
ers also (Kevin O’Day, Trey 
McIntyre, David Allan, Ulysses 
Dove, Lynn Taylor-Corbett, 
Anna Laerkesen, John AHyne). 

Basically, they produced two 
kinds of ballets. One was the 
complication ballet, favoured 
by tiie company insiders - a 
ballet in which classical steps 
are cut up into a thousand 
details, a thousan d little pretti- 
nesses, in the hope, it seems, of 
distracting Hm audience from 
the question of what it all 
means. 


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barely dance. This was not a 
ballet; it was a teacup - Louis 
XV. 

More popular with the audi- 
ence was the genre favoured 
by the outsider choreogra- 
phers: the alienation ballet. 
This, too, I believe, is 
descended from Balanchine - 
from his stark “leotard” ballets 
- but remotely. Its true father 
is W uHam For s ythe, the Amer- 
ican choreographer who has 
had such a success in Europe. 
In any case, what it looks like 
is a Calvin Klein advertise- 
ment To jarring music (Bar- 
t6k, electric violins) stylish- 
looking young people stand 
around in unitards looking 
sexy and disaffected. Occasion- 
ally, they dance with each 
other; often they dance alone, 
and then get bored and walk 


with their legs crossed; they 
somersaulted off their part- 
ners' shoulders; they sweated 
and gasped. These are not the 
kinds of exertions that keep 
ballet companies in shape. 
Both ABT and NYCB are field- 
ing soma thrilling young danc- 
ers - notably, Ethan Stiefel 
and Jennifer Ringer at NYCB 
and Paloma Herrera and Ash- 
ley Tuttle at ABT - at the 
time that general com- 
pany standards are failing 
In a recent performance of 
Balanchine's Mozortiana at 
NYCB, the four woman corps 
moved as if through costard. 
For this situation, various rea- 
sons have been advanced, 
faich iding the death of Balan- 
chine and other revered mas- 
ters. ("AR our icons in the 
dance have pretty much passed 
on," ABT principal Cheryl 
Yeager said in a recent inter- 
view with Dance Magazine. 
“We don’t have to cut off our 
heads to be ballet dancers any 
more.”) The decline will only 
be hastened, however, if chore- 
ographers, looking for some- 
thing striking to do, create 
steps so difficult that they can- 
not shape or phrase them - in 
effect cannot dance them - 
but only hope to get through 
than somehow. 


O n Thursday Heri- 
tage Secretary Peter 
Brooke declared the 
National Theatre on 
London’s South Rank a listed 
building. And on Thursday 
Richard Eyre, the NT’s direc- 
tor, announced that Sir Denys 
Lasdun’s unloved creation was 
to be subject to a substantial 
face-lift 

Time may improve the look 
of the National hat concrete 
brutalism, circa 1970, is cur- 
rently out of papular favour, 
Richard Eyre's diplomatic 
embellishmen ts, which mriniie 
dosing the ugly road that cir- 
cles the place and knocking 
down a superfluous walkway 
to create a square stretching to 
the river, are a small step in 
the right direction. Sealing and 
cleaning the concrete before it 
starts to crumble may also 
soften the over-riding menace 
of the fly tower. 

So here is an artistic re-de- 
velopment to be wannly wel- 
coined. And although it is dan- 
gerous to distribute Lottery 
money before a pound has 
actually been staked, the 
National most stand a good 
chance of being an early ben- 
eficiary. For of course Richard 
Eyre can only afford his £7m 
refhrbishment if he gets Lot- 
tery aid. 

He anticipates raising £L5m 
from the National’s friends 
with the rest coming either as 
a millennium project or from* 
the Arts Council’s Lottery 
funds. The National is enjoying 
an artistic flowering; it runs a 
tight ship financially and 
never publicly asks for more 
subsidy; the building is more 
successful Mdn than out and 
money will he spent here. This 
seems a Lottery project with a 
favourable wind behind it 
Adding to its prospects was 
the news that Peter Brooke 
and his fellow Millennium 
Medici's have decided to devote 
some of the ElOOm phis a year 
they will distribute to smaller 
projects, as well as a dozen 
major schemes. The National's 
£3 5m falls neatly into this cat- 
egory if its alternative source, 
the Arts Council, should prove 
unexpectedly difficult 
Peter Brooke has shed some 
light on his thinking . The num- 
ber of substantial millennium 
projects has been raised from 
the rumoured eight to a dozen, 
which should encourage the- 
more peripheral projects like 
the Chester auditorium and 
AlbertropoUs. As expected, he 
intends to support bursaries. 


- Caspar David Ferdinand 

FWedrich to Hodler 

A Romantic Tradition 


A few promising pieces 
lasnqd from they* unpromising 
molds - Miriam Mahdaviani’s 
Correlazkme, Richard Tanner’s 
Episodes & Sarcasms, Kevin 
O Day’s Viola Alow - but that 
is three out of 12 , and all three 
needed more work- In a ballet 
world nearly void of interest- 
ing new choreography, the Dia- 
mond Project sounds like a 
good idea - throw everybody 
into the pool, see who swims - 
but perhaps it isn't. With so 
many choreographers, each Is 
given too small an honour, too 
gmap a challenge, anri this 
may have contributed to the 
extreme conventionality of ' 
their works. The company 
would probably be better 
served by operating in the 
usual way: commissioning two 
or three works and thus plac- 
ing serious bets. 

Apart from its general medt 
ocrity, w hat struck one about 
the new ballet choreography 
tids spring was how very, diffi- 
cult it was. Dancers pirouetted 




Paintings and Drawings from the 
Oskar Reinhart Foundation, Winterthur 

. inte re s t ing, unfamiliar and lovely -works ... ' 
The Hnnmcol Times 

MondaytoSnmby National CttBcylrlnrmtlnB 
10m-£am 071-399 ms 


071-339 3 S26 (24 1m) 

NATIONAL 
GALLERY 


He also gave tentative backing 
for the Idea of a major festival 
on the lines of the 1851 Cheat 
Exhibition . Surely no 
be wasted if this project is 
going to be a serious contender 
rather than a half-cocked 
diversion. 

★ 

When Charlie Allsopp calls to 
order the saleroom at Chris- 
tie’s at 7pm on Monday even- 
ing and takes bids on a tiny 
Boudin landscape, the art 
world will bold its breath. This 

Here is an artistic 
development to be 
warmly welcomed 

auction of post-1870 art, taken 
with a simila r offering at 
Sotheby's on Tuesday, will 
determine the fete of the sea- 
son. 

In the good old days, £50m 
and more might be raised from 
an hour's frantic dealing at 
this a i»p™i summer sale. Now 
both auction houses will be 
happy to bring in half that 
The auctions are very selec- 
tive, with just 50 or so lots at 
each. Vendors have been per- 
suaded to accept modest 
reserves. The pictures are 
mainly fresh on the market, 
with enticing historical pedi- 
grees. The preparations have 


been meticulous, for another 
disaster could set back the 
price recovery in art for 
angthpr year. 

Christie’s has the good later 
stuff, including one of the eight 
Atelier pictures that Braque 
painted in the 1950s. It sold 
Atelier VTH for £13m In 1992, 
when the market was at rod: 
bottom. The top estimate of 
£3 .5m for Atelier V shows 
excessive caution. 

Sotheby's has the better ear- 
lier works, including the first 
sketchy version of Manet’s 
most important composition, 
that bar giri at the FoUies-Ber- 
gfire, a star of the Courtauld 
collection. The £3m estimate 
seems modest. The other 
Sotheby’s gem is one of the ten 
paintings of poplars Monet 
completed in 189L Here again 
£3m is expected. A sign of the 
times is the £750,000 estimate 
on a haunting painting by 
Magritte: in 1989 it sold for 
over $2m. 

Perhaps Sotheby's and Chris- 
tie’s will have calls from a 
mysterious telephone bidder, 
like the one who transfixed 
Bonhams’ auction of Gothic art 
last Monday. The sale almost 
doubled Its forecast at £271,000, 
with a bed designed by Pugin’s 
son Edward in 1865 making 
£88,500. The new owner of the 
bed, and much else from the 
sale, is that well known Holly- 
wood Goto, Cher. 


| Entries are now being accepted for) 


Manl Katz (1894-1952), Les Musiclens. 
Estimate: $70,000-90,000. 


19th and 20th Century 
works of Art 

We are now accepting entries for our first 
auction In Tel Aviv on 25 September 1994. If you 
would like further information and to arrange 
free auction estimates of your works of art, 
please contact Anke Adler-Slottke or MatthIJs 
Erdman In London on (4471) 839 9060. 



TbsNadonai<k(Ia-y 


CHRISTIE’S 

8 King Street, Sc. James's, London SW1 Y 6QT 
Tel: (4471) 839 9060 Fax: (4471) 839 1611 


i 





xxu WEEKEND FT 


FINANCIAL TIMES WEEKEND JUNE 25/JUNE26 1994 


ARTS 


The purest 
painter of 
them all 

William Packer admires the later 
work of Pierre Bonnard 


P ierre Bonnard, with 
a handful of his 
more-or-less contem- 
poraries - Matisse 
and Picasso of 
course. Bec kmann . Mondrian 
and one or two others - Is one 
of the truly great painters of 
the 20th century. What makes 
him remarkable within this 
elite is his quality as the pur- 
est painter of them alL That Is 
not to say that he was not an 
exquisite draughtsman, but 
even in this respect we find 
him suggesting, teasing the 
image out of a delicate flurry 
of marks, rather than firing 
and delineating it in more con- 
ventional graphic fashion. 

If his drawing Is so painterly, 
how much more so is his paint- 
ing itself. For while with Pic- 
asso and Matisse, for example, 
we will always find a quality of 
drawing In the painting - that 
is to say in the linear state- 
ment of an image which only 
then is painted - with Bonnard 
the paint on the surface is the 
image, the image a confection 
of stroke against stroke, colour 
against colour, with whatever 
line there is growing from this 
process. 

The irony is that it was as a 
graphic artist that Bonnard 
first marie his reputation in his 
Nabis youth in the 1890s. But 
here again it is in the broader 
disposition of pattern, tone or 
colour, mass against mass, flat 
on the surface, that we find the 
distinguishing character of the 
work. Even in the work of his 
old age, and especially in the 
domestic interiors and table- 
top stQl-lifes. with their fron- 
tal. horizontal and vertical 
emphases, and their exploita- 
tion of doors and windows, 
mirror frame and table edge, 
we may discover echoes of 
those same youthful, sophisti- 
cated graphic tricks. 

It is this work of his old age 
which provides the substance 
of the small, beautifully judged 
and visually ravishing exhibi- 
tion that now fills the Hay- 
ward's upper galleries. Bon- 
nard had been visiting and 
working in the south of France 
since the early years of the 
century. In the spring of 1926, 
at the age of 58, having decided 
at last to settle in the sun, he 
bought the Villa du Bosquet at 


le Cannet, a small resort close 
to Cannes on the Cote d’Azur. 
It was to be not just home and 
studio but the principal subject 
and stimulus of his work until 
his death, some 21 years later. 

He did not, of course, confine 
himself to waiting only from 
the house and its garden, but It 
is the intriguing premise of 
this exhibition to concentrate 
on what he did within that lim- 
itation- Nothing, however, is 
lost of the variety or scope of 
his work, for here along with 
the paintings of his wife, 
Marthe, taking yet another 
bath, or of the table laid for 
lunch, are broadest and most 
distant of landscapes, looking 
out high over the garden wall 
to the sea far below, and to the 
blue and purple m o untain s far 
beyond. 

And in between comes the 
middle view, up the steps to 
the terrace, down the garden 
path to the garden gate and 
over the wall to the neigh- 
bours’ rooftops, fields and gar- 
dens. The birds feed along the 
path between the shrubs and 
bushes: the little dog skips 
across the grass. Inside the 
house, the tables seem to take 
as through the hours of the 
day and the seasons of the 
year. We tour the house, from 
dining-room to bathroom, to 
studio, to bedroom and back to 
dining-room - the house is not 
large- Marthe bathes a gain, sits 
working at the table, moves 
across the room, gets ready to 
go out Hie painter looks at 
himself in the bedroom mirror. 

The sense of place is palpa- 
ble, inescapeable. We feel we 
know exactly where we are. 
whether sitting at table, 
looking out of the window or 
through from one room to the 
next, catching just a glimpse of 
another figure here, a profile 
there, caught out of the comer 
of the eye. It is all done 
through the paint, s himmering 
and glowing on the surface of 
the canvas. We are not shown 
what is there exactly: no thing 
is described in simple terms, 
but rather hinted at, suggested 
by touch and colour, stroke 
against stroke. 

We are coaxed into a conspir- 
acy of feeling by which we 
sense through our eyes, rather 
than merely see, just how the 



’Marthe in the DHng Room* by Pierre Bonnard, 1933; the sense at the place is palpable 


sunlight hangs in the air, and 
the shadows fall, and time 
passes, so softly. We may 
almost hear the bees hum. and 
the clock tick. “Brightness falls 
from the air; Queens have died, 
young and fair . . ." Here is a 


great artist in his foil matu- 
rity, catching sensation even 
as it fades. It is magical stuff, 
and poignant too, as Is all 
great art, for it touches on our 
mortality. “Oust hath closed 
Helen's eye . . 


Bonnard at le Bosquet Hay- 
ward Gallery, South Bank 
Centre SE1, until August 29, 
then on to Newcastle; National 
Touring Exhibition sponsored 
by British Telecom. 


Whaddaya know, 
dreams come true 

To his surprise, Martin Hoyle enjoys * Copacabana 


T hey came to sneer 
(well, some of us) and 
stayed to cheer (well, 
most of them). Copa- 
cabana is the musical based on 
the song by Barry Manflow. A 
tempting precedent for lazy 
impresarios who can now 
adapt any number of well- 
loved songs into plays and flln- 
mlna te the West End with 
such titles as Jch OroBe Ntcht 
and Wake Me Up Before You 
Go-Go. 

Lei it be said at once that 
those of us who, with the open- 
mindedness of true criticism, 
approached this show with 
dread were pleasantly sur- 
prised. If you associate Mam- 
low's music with the Welt- 
schmerz cf blue-rinsed matrons 
in sun-lounges, be reassured 
that these songs are new, fresh 
- though a threatened render? 
ing of T Write the Songs" drew 
screams of recognition from 
the audience - and sometimes 
tuneful 

Roger Redfam’s Plymouth? 
originated production is chew- 
ful, spectacular, bouncy and 
shrewdly aimed at its market 
Let curmudgeons «ni»piain A 
show that cribs WJS. Gilbert's 
joke about composing and 
decomposing has pedigree. 

The framing story concerns a 
young song-writer, Steve (Gary 
Wilmot, immensely likable), 
who dreams up tire title song 
as he strums at tiie piano. Dis- 
solve Into the play within a 
play, Steve becomes young 
song-writer Tony who faffs far 
aspirant actress from Tulsa, 
one Lola (Nicola Dawn). We 
are transported to the interior 
of the Bodleian Library, 
Oxford, or possibly Grand Cen- 
tral Station, where a dozen 
young hopefuls in identical 
Andrews Sisters hairstyle^ 
arrive to make the big time. 

This is 1947 Broadway and 
after auditioning for South 
Pacific and Brigadoon Lola is 
taken on by the Copacaband 
nightclub. Here she attracts 
the attention of villainous Itioo 
(Ronald Reagan in a mous- 
tache, thoug h the programme 
calk him Richard Lyndon) and 
we are daraled by showgirls in 
glitter wearing gilded grapes, 
gold pineapples and what In 
one case look like ungilded 
courgettes. *11115 is the kind of 
glamour 1 used to dream 
about,” breathes Lola. Me too; I 
would wake up screaming. 

Rico says, “Champagne 
should never be sipped; It 
should he consumed like life 
itself - with great passion.” 
His discarded mistress Con- 


T here is a poignant 
scene in Jules Das- 
sin’s Never on Sun- 
day in which Homer 
Thrace, the brash American 
know-it-all determined to bring 
back the true cultural values 
of ancient Greece to a country 
he finds, riddled with happy 
hookers and hard drinkers, 
castigates Takis, the local bou- 
zouki player, for being unable 
to read music, thus forsaking 
any right to be called a musi- 
cian. 

The scolded Takis sulks 
away to lock himself in the 
bathroom, only to recover his 
spirits when Ilya, the compas- 
sionate whore played by Mel- 
ina Mercouri, persuades him 
that the birds in the trees man- 
age to be the most beautiful of 
all music-makers without ever 
needing to consult written 
notes. 

The scene was almost cer- 
tainly based on a real-life inci- 
dent during the shooting of the 
film; Dassin had been assured 
by his wife Mercouri that the 
film score’s composer, Manos 
Hadjidakis, would produce a 
fitting piece of music to accom- 


Greece mourns 

» 

end of an era 

Peter Aspden on the death of 
bouzouki player and composer 
Manos Hadjidakis 


pany his sharply cynical por- 
trayal of American cultural 
imperialism. 

What he had not expected 
was that Hadjidakis would 
turn up with a group of friends 
with not a leaf of sheet music 
between them, asking them 
simply to improvise round any 
random melody he would start 
picking out 

Dassin need not have wor- 
ried; HadjidakLs’s main theme 
for Never on Sunday, sung by 
Mercouri, won that year's Orig- 
inal Song Oscar and became a 
massive international hit. 

The death of Hadjidakis last 
week, following so closely that 


4r 


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M I III! II ORCHESTRA Brahma Sartss. 

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BEXLEY IN CONCERT Orchestras a bands from BnxUly Music! 
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of his great friend and collabo- 
rator Mercouri in March, has 
left Greece in a state of 
shock which is bard to imagine 
in any other European coun- 
try. 

These two great charismatic 
performers, along with Mikis 
Theodorakis, were by far the 
most potent symbols of 
Greece’s cultural golden era at 
the start of the 1960s, when the 
country began to emerge from 
the lengthy shadow of its Nazi 
occupation and civil war. and 
started to eqjoy the fruits of 
cheap air travel and hordes of 
sunshine -see king northern 
Europeans. 

The bouzouki, and the brood- 
ing, sensual rebetiko folk-song 
became ubiquitous harbingers 
of the country's new self- 
confidence; previously dis- 
missed as a marginal, working 
Hass phenomenon, Hadjidakis 
and Theodorakis used their 
flair for melody, and iater their 
thirst for experimentation, to 
bring this essentially eastern 


musical form to mass atten- 
tion. 

Today, serious music critics 
dismiss much of these compos- 
ers' work as tourist-kitsch, but 
that is to underestimate its 
role in defining a new identity 
for a modem country straining 
to shed a frightening burden of 
ancient glories. 

For a brief period, before the 
Colonels* coup in the spring of 
1967, Greece - modem Greece 
- felt it could teach the world 
a thing or two about living, 
whether in the form of 
Anthony Quinn's Zorba, con- 
ducting Alan Bates in a few 
weary dance-steps on the 
beach, or Mercouri's Ilya, 
devouring ouzo, sailors and 
capitalism In equal measure. 

Today, straining to breathe 
through the belching fumes of 
its capital city, racked by eco- 
nomic uncertainty, feeling 
threatened by border states, 
Greece has lost that momen- 
tary sense of exhilaration and 
has reverted to its previous 
cultural inferiority complex. 
As long as there was Melina 
fighting to her last breath for 
her Marbles, as long as Hadji- 
dakis continued to hold court 
in Athenian cafes. Greeks 
could still remember when 
things felt better. 

The loss of these dominant 
figures deals a hefty blow to a 
national psyche which, forged 
by the Cassandras and Medeas 
of its cultural heritage, needs 
little encouragement to look on 
the bleak side of life. 


Sizzler in the 
concert hall 


ROYAL OPERA HOUSE, COVENT GARDEN 
SUNDAY 3RD JULY at 7 pm 

ENGLISH BACH FESTIVAL 

„ C.W Gluck 

ORPHEE ET EURTDICE 

Opera in three Ms 

"Revelatory performance” Financial Times 

Orphie GREGORY CROSS 
Euridice MARILYN HILL SMITH 
Amour SANDRA DUGDALE 

Eag lra fa Bach Festival Baroque Or ch e stra 
Engl i ih Bach Festival Singers and Dancers 

Conductor JEAN -CLAUDE MALGOIRE 
Director TOM HAWKES 
Choreographe r ST EPHEN PRESTON 
Designer TERENCE EMERY 
Original costumes rained by DEREK WEST 
Sponsored by A_G_ Levendt Foundation 
Tickets £3.50 - £52.50 

Box Ogite/CC 071-240 1066/1911 


T he London Symphony 
Orchestra's concert 
under Kent Nagano 
at Barbican Hall on 
Thursday was designed to be 
sizzling and balletic: Ravel’s La 
Valse, Prokofiev’s Borneo and 
Juliet ballet suite and the 
European premiere of the Vio- 
lin Concerto by the American 
John Adams (bom 1947), a 
composer renowned for heady 
minimalist rhythmic intensi- 
ties. Nagano is a leading expo- 
nent of Adams’s work, having 
launched (and latterly 
recorded) bis opera The Death 
of KUnghoffer and performed 
many of his other pieces. 

He is also a guaranteed siz- 
zler in the concert hall. His 
account of Ravel's bewitching 
yet brutally vivid “choreo- 
graphic poem”, that strangely 
extrovert threnody for the old 
Europe, which begins in the 
ballroom to end on the battle- 
field, made one feel the truth 
or all those epithets and 
brought home the sheer sono- 
rous power of the LSO, espe- 
cially in the lower and darkly 
rumbling registers. No matter 
how dark and rumbling the 
sounds, they were always pre- 
cisely focussed: little curling 
counterpoints took on chilling 
force. 

Adams’s concerto, written in 
1993 and premiered in Minnea- 
polis in January (with soloist 
Jorja Fleezanis) is also a kind 
of choreographic poem, having 
been jointly commissioned not 
only by two orchestras (Min- 
nesota Orchestra; L£0) but by 
the New York City Ballet. 
Adams's strict, often motoric 
rhythmic manner and colour- 
ful (but often inwardly com- 
plex) imagery lend themselves 
readily to dance. 

His 1988 score Fearful Sym- 
metries has been choreo- 
graphed no less than six times, 
most recently by Ashley Page, 
whose Royal Ballet version 

Cbess No 1027 

1 RBJ+ Kg7 2 Bb6+- Kxg6 3 Rg8 
with no defence to 4 RhS+ 
Bxh5 3 gS mate. 


opened at Covent Garden last 
week. 

Bat it was out of tile experi- 
ence of opera composing, 
Adams writes, that the present 
concerto sprang. To him it 
illustrates a melodic and har- 
monic flexibility and a contra- 
puntal richness alien to the 
minimalis t rigour of his earlier 
work but called for by The 
Death of KUnghoffer and now 
the basis of what he caife a 
“pQ/sX-KUnghofler”, or post-min- 
imalist, language. Act ually , 
few minimalist composers 
besides the soporific Philip 
Glass have tended to keep mat- 


Paul Driver reviews 
John Adams ' new 
concerto conducted 
by Kent Nagano 


tors truly minimalist for long; 
but there is no mistaWng the 
opulent melodic and contra- 
puntal intenti o ns of this new 
work, even if the part-writing 
is heavily dependent on flurry- 
ing scale passages, and the 
rhapsodising does not quite 
throw up tunes. 

The orchestra used is small 
(double winds), but a large 
assortment at percussion arid a 
pair of synthesisers nraiw up 
the odds. When the latter , are 
not spending time perversely 
imitating the harp, they con- 
tribute some novel, ethereal 
effects. There are the three 
movements, fast-slow J^st, tra- 
ditional to a concerto; the sec-, 
ond a gently musing and 
attractive Chaconne with the 
curious subtitle “Body through 
which the dream flows”; the 
third an exceptionally lively 
Toccata with extra bite sup- 
plied by claves and cowbell. 
The solo part, brilliantly des- 
patched by Gtdon Kremer, is 
foil of traditional figurations 
and derices. With likeable 
impunity and verve, Adams 
has produced a virtuoso 
vehicle in something like the 
grand romantic manner. 


chita. also in glitter but no veg- 
etables, fa alarmed; she knows 
the signs. We then enjoy 
"Bolero de Amor", one of those 
numbers where the girls wear 
f faii not 1 stockings an Hwrir anus 
and the men tear their (the 
girls') skirts off. 

Tension mounts as Conchita 
(nicely played as a fading 
Chita Rivera type by Anna 
Nicholas) tries to warn off Lola 
with philosophy: “Honee, too 
muffh dreaming can be danger- 
ous.” Rico cruelly counters this 
with an Oxford linguistic snarl 
of “Conchita has been telling 
her putrid lies again.” 

D runk with the 
sophistication of it 
all, Lola is- kid- 
napped to Havana 
(“Havana, Cuba?” she asks tike 
another geographically disad- 
vantaged heroine, Sarah 
Brown in Guys and Dolls) 
where Rico intends to have his 
way with her. 

In Rico’s own nightclub, the 
Tropicana, Conchita and Her 
Boys (pleated flairs, . frilly 
sleeves and nattily knotted 
boleros) sing of Havana in 
terms that recall “ft's Nicer in. 
Nice" from The Boy Friend. 

The foil extent of Rico’s das- 
tardly intentions towards the 
humiliated Lola then becomes 
dear. He forces her into a 


rianwi routine where she is cap- 
tured by lithe-limbed pirates 
who finger her frills, rather 
enviously 1 thought. Tony 
offsets their escape from Rico s 
du tches and the company does 
a big number addressed to 
"Sweet Heaven" which I think 
reads a little too puinh into the 
deity's interest In aberrant 
showgirls. Bac-k in his apart- 
ment young Tony /Steve wakes 
from his reverie, having fallen 
in love with bis creation, Lola. 
(A duet, reality and fantasy 
never quite meeting, provides 
a moment of genuine charm.) 

But Id The girl whom we 
have glimps ed in the framing 
narrative as a nag with a face- 
pack does her hair, puts on a 
frock and “It’s youT he cries. 
And. whaddaya know, his 
squabbling in-laws turn out to 
be ihe comically irascible club- 
owner Sam said wisecracking 
cigarette-girl Gladys (Jenny 
Login) of his dream. He even 
gets to take the girlfriend’s 
glasses off, transforming 
her, according to time-hon- 
oured alchemy, into a beauty. 

He decides to give the title 
song a happy ending: The crit- 
ics realise that the evening has 
passed without actually hear- 
ing the number right through 
and, reckoning that for once 
they have the breaks, steal 
away. 



MctanJ Lyndon mfho lfltabioai Bfco, Mcoto Dmnv foe JovefcrLofci 


The Ofticwil London I heetre Guide 


AOSLrtUJbnd.W« 

SauctBoaJmid 


UKIMUH) 


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FINANCIAL TIMES WEEKEND JUNE 25/JUNE 26 1994 


TELEVISION 


SATURDAY 


|( BBC1 


BBC2 


LWT 


CHANNEL4 


REGIONS 


) ;• S Mm. 73© Fta* the CoL 7-45 Jam 90. 8.10 
] < '9 Fflntstonoa. US Ftowd Um TVM. US ParriM 
* ^ '■1058 To Lresia with Lava. 1148 Weetiw*. 

Grandstand. Introduced by 
Desmond Lynsm. 12.00 Tenrta 
W fc nt ri edoo '94. Coverage of the 
sixth day's action Aon the AB- 
Engtend CW0, as pbyera vie for a 
place in the last 16. Commentary by 
John Barrett, David Mercer, Mark 
Cox, B» ThrattaH. John Alexander. 
Paul Hutchins, JuSan Tutt VkgMa 
Wade and Am Jonas. 1/10 News. 
1/15 Tennis. 4A5 World Cup *04: A 
round-up of news from America, 
where Argentbia and Holland are 
among the teema In action later 
today. Times may vary. 

8.10 N o w*. 

SJM Regional News and Sport. 

8^8 Ffan: The Three Mueketaera. 

Comte version of Dumas' classic 
about brave swordsmen who fofl a 
treacherous plot to kg King Louie 
MR. Starring Otver Reed. FBchard 
Chamberlain and Mteheel York 
(1973). 

' 7.10 Pop Quiz. Roger Taylor, Pete Curt- 
nah, Toby Jepeon and Matthew 
Patamen co m pe t e fa the test of 
musical knowledge, featuring archive 
footage of Cat Stevens, Bros, Led 
Zeppelin and The Wttsrbqye. 

7-40 Hit the Road. Team captatos Jona- 
than Coleman. Amabel Gflae and 
John Lssle urge Bobby Devro, 

Stuart Hal, Jonathan Manta, Jenny 
Rowan, Sarah Vandsrtbergh and 
Bratfey Watah to perform a variety 
of Mane taste In Ha rro ga te, 
sure end Sport Whet he r . 


UO Open UnhwraSy. 1215pm F*ir Cotta Quean 
. of Montana. 

1-40 Oardanera* World Live. Wghflghta 
ol some of the ds et gnar Qaidorc 
displayed as the programme's 
ereuta show atthe National Exhibi- 
tion Centre; Birmingham. Pius, David 
Steuana meats Noel Ed m o n d s and a 
green- finge red Mr Btabfay when he 
visits CrWdey Bottom. 

Z90 Scrutiny, fenestrations into the lat- 
est parliamentary issues and con- 


840 Worid Cup Qrendetamd. Argentina v 
Nigeria. Uve coverage from Fox- 
boro, Miuu i ad saetta W1 the 
Nigerians be table to wmriate the 
exploits of C a meroon, who dented 
Aigenttoe pride hi the opening game 
of tafia '90? Plus, highfeghta of Bel- 
gium v Holland, and Saudi Arabia v 
Morocco. 

11/M Atrt sO cs: Eu ro pee n Cup. Devid 

Coleman commentates on the open- 
ing day’s action from Alexander Sta- 
cflum, Birmingham. 

11-40 Fine Raienttess. A newly promoted 
detective and Ms Jaded partner set 
out on the Itafl of a aortal kfifar who 
selects Ms victims tom tin tele- 
phone dfeectory. Ttvfler, starring 
Robert Loggia CtBSOL 
1.10 Weather. 

1.18 Close. 


&0O Wimbledon *4. Uve oowsrage from 
the famous lawns of the Afl-Engtend 
Club, as the seeds duel with ambi- 
tious outsiders for a place In the test 
16. Once agate the top names 
start as favoultas, but it has been 
something of e trend in recant tour- 
naments tor unrartced outsidare to 
put one over on theta more tended 
opponen t s, as Etttain's Jeremy 
Bates showed with his victory over 
thrse-tbnes Wfertjiedon wtener Boris 
Bector in the Stella Artois tourna- 
ment aft Queen's Club. 

SL30 nfew Young SfMrtocft Hofenm 

Action-packed advertise folowing 
the taanage detaettve and hte side- 
kick Watson as may embark on their 
Oat fawaetigstfon wMto eOt at 
schooL Nicholea Rowe and Alan* 
Cot star (1985). 

10.18 Today at Wfenfatodon. Sue Barker 

. presents highfights of today’s play, 
and analyses the first week of the 

tourna m ent with the help of an 
expert studte guest 

11.18 Fine Cut The award-wfrmbig 
daainan l ay aeries to cue a s on the 
controversial Issue ol modem sexual 
tafl hxi es. TMe film revaata the 
hunoroos yet tragic tele of men and 
women who choose to Ive without 
me socta, moral ana psycnotogicsi 
combalnt a of Hie wet of aoctely at a 
time when ceraiess promiscuity can 
prove dawty. 


Fterc The AdvenkJres of Gerard. A 

D 088 QII rronen oracor unoonaKas a 
mission to deceive the Engfish 
forces during the Napoleoni c Wars. 
Comic historical adventure, starring 
Peter McBiary, CtatxSe CanCnata 
and EH Waltach (t97D). 


ALflO GMTV. 0L2S Gtovne & 11JO The tTV Chart 
Show. lUOpm Opening Shot. 

1-00 (IN N ews; Weat he r . 

1.08 London Today; Wsslhar. 

1.10 NBA BasfcsttMfi. 

tOO AtW s tt o a: The European Cup. Jim 
Rosenthal Introduces the opening 
day's action ton A le xa nder Sta- 
dkim. Btenteghem. 

4-48 ITM News; Weather. 

BjOO London Today; Weather. 

8.18 World Cup ’04. Belgium V Holand 
from the C«7us Bowl Ortanda The 
Dutch hem spread the kitametional 
net far and wide to trawl hi their 
team far Ha tournament. wMla Bel- 
gium tr squad is drawn entirely from 
their domestic first dvtofco, wfih the 
ex ce pt ions of Parma’s George Qrun 
and Enzo Sctfo of Monaco. 

7-48 Otars tn Their Eyes. SounctaHte 
contestant s take the stage as Nafi 
Sedate. Mtek Hucknal, George 
Mtehael Comia Rancta and Linda 
Parry at 4 Non Blondes. 


500 4-Td on Vter. BAS Earty Morning. KlOO 
Trane World Sport 11JJ0 Qaaflc Granra. 1220 Sign 
Ore Al Letaxa. 12.30pm Poop** First. 

I.oo 4 Qoee to Ctaatonbtsy. Live rxrver- 
age from the annual rock festival. 
Inducing p erform an ces by M’SheQ, 
Grant Lee Buffalo and Rkfs. Plus, 
comedy cabaret acts and choral 
works. 


from ! 


rtostand New- 


MO ffar n a sc he e A auocesstiM singer 
visits hartar ml nafey ■ friend to nm- 
nisce about their Ife-long ratafion- 
shlp- Teatjarker, starring Batts 
Wdfar and Barbara Harahey (1989. 

1080 ITN Maws; Weather. 

10-40 London Weather. 

10-48 F8nc Bright Lights, Big COy. 

Drama starring Mtahaef J. Fox as a 
mafrglna raaaarc h w whose fife fafis 
apart whan Mb drug habit apbaie out 
of controL WHh Kiefer Sutherland 
• (1988). 


. introduced by John Fran- 
ccme and Derek Thompson. Rom 
Newmarket: The 3.05 Fred Archer 
Stakes, 035 Van Geaat Criterion 
. Stakes, 4.10 Ewer Stud Enpraas 
Stakes, and the 4.45 RanHion Stud 
Ma iden Stakes. From Newcastle; 
The 2.45 Cameron Hal Develop- 
ments Sprint Trophy (H’cap States), 
3^0 Journal ‘Good Momteg' Harefl- 
• cap Stakea, SS5 Newcastle Brown 
Ale Northumberland Plate (H'cap 
Staked, andthe480HansrosT7nt- 
ber and Bidclng SoppUas Stayers 
ChempteneMp Series Stakes 
(H'cap). 

8.08 Brookskie; News Summary. 


Rbie Jason and As Argonauts. 
CtaeafctentaeyacNentireehronld- 
tnofiMtogandWyGraekharotaparfi- 
oce quest for the febtad Goktan 
Fteece. Starring Todd Armstrong, 
Nancy Kovack and Honor Blackman 
(1963). 

The Sexual I m per a tive. How oft- 
apring are reared, inducftig am 
MH fetao the reeouees parents 
need to provide for their young suo- 
ceesfaBy. 

The Uhplaa lent World of Perm 
and Talar. Another chance to enjoy 
macabre luaionc by the cult Ameri- 
can duo. With Fiona FbBerton. 


10-00 4 Goes to Glastonbury. Further five 
coverage from the mate a pe ctocu- 
tar. 


12JO MoviM. Games and VUece. 105 Ar«as 
News. 1-10 Cartoon TTme. 1J0 Mgal MarweTs 
tedyCar TM. ZOO AtMadoa; The Curtp—n CUp. 
800 Anofe News and Sport 1040 Angta VKMhac. 
1 045 The Legend of 88ta Jem. (1905) 

1ZA0 Movies. Games and Videos. 1JS Bonier 
News. 1.10 Roakaport. 1A0 NlgN MwweTs Indy- 
Car "84. ZOO AtWerk* The Bxopwn Cup. 445 
Border News and Weathe r BJOO Cwtoon Time. 
104B The Legend of BBe Jean. (188^ 


1240 Mm tart Top ia LW Central News 140 
RodMpQ rt . ZOO A th laM nr The B v ope en Cup. 800 
Central News 5dD8 Buga Bamy. 1040 Local 
W e ther. 1 045 Ahport taO: The Oaneorde. P978) 

1ZZ0 Held. U05 Charnel Diary. 1.10 NBA Baehet- 
baL ZOO AtHeHos: The Europren Cup. 540 Chan- 
nel News. 845 PuflWa pafira Bio Cratoon Hm 
1046 Crime Story. 1145 Qwemoha: flam to 
OVM 1867) 


1ZZ0 Cndntw Ce. 146 Gamphn lltadtave 1.10 
T ttafloa. 140 Roctaport. 2JM AHedOK The B*o- 
pean Cup. BJOO Grampian Harafinre 806 Gramptan 
News Review. 1040 Onxiptai Weather- 1046 The 
Legend of BBa Jeen. (188 9 


1Z90 Monte, Games and Videos. 146 Granada 
News 1.10 Bo ctapu r t 140 Mod Irianeers tadyCw 
*94. ZOO AiMatlcK TTw European Cup. 436 Gran- 
ada News BOO Bugs Buny and Pnp* U Pew. 
1046 The Legend arBSo Jean {186Q 


12-30 World Ctp Hal of Earns. 1/M HIV News. 
1.10 Mpd Mawn IndyCar *84. 140 Cartoon 
Time. 2/M AHedce: The Europeen Cup. 500 HTV 
News. 805 Cartoon Time. 1040 HIV Weather. 
1 046 Th e Legend of Bate Jean. (1986) 

1Z30 Held. U06 Meriden News. 1.10 t6A Bnakat- 
beA 2J00 MNeAcK The aaopeen Cup. BOO Merid- 
tai News. 5.10 Cartoon Tima. 1046 Crime Story. 
1146 Gunamotce: Return to Dodge. (TVM 1807) 


18-48 Tour of Dufy; flN News 
1-40 The Big E. 

Qaz Top Non Stop; ITN New 


Cfnerna, Cfeiema, Ctneme. 


18-40 Herman's Head. 

1.10 Just for Leu^ts. ' 
1-40 NafwdCRy. 

Beads end Butt Heed. 
Z4M True or Faiae. 


1230 Chemplona. 1 job Scotfend Tarhy. 1.10 Tab- 
toe. 140 Cartoon Urns. ZOO AtMedes: The Euro- 
pean Cup. BOO flroiUnri Todw 6.10 Cartoon Ihna. 
1040 Scottish Weather. 1046 The Good, the Bad 
end the UgY. (1966) 

TTf Ttofe 

IZjM Movlee, Games and Videos. 1/M Tyne Tees 
Mm 1.10 The Mknabra Today. 146 Zona. ZOO 
Athtadca: The Birepaan Cux 456 Tyne Tees Bto- 
ur day 104 6^ The Orton Hrid. (1876) 

IZZOSoe. t/V t/TVLhe Neee 148 WCW VMartd- 
wlde Wtoattog. SJOO UTV Uve News 6L06 Cwtoori 
Time. 1040 UTV Uve Nanai 1048 The Legend of 
(1665) 


BJOO Hot W heels. 


1240 Moviee. Games end Vldeoa. 1-06 Wertcoun- 
fey News. 1.10 l«A ItaetaCbWL ZOO AthWkc The 
Euopean Cup. 500 Weetcmnay Narra. 1045 The 
Legmd of Bfifi e Jean. (1985) 

1240 Movies, Gamas and Vldeoa. U05 Odentfcr 
News. L10 The Munetmt Today. 105 Zone. ZOO 
MUtOcK The European Can. 405 C alend a r News. 
1040 local Weather. 1046 The Orton RekL 0878) 




SUNDAY 



f BBC1 | 

S BBC2 

2 LWT | 

| CHANNEL4 J 

J REGIONS | 


700 Johnson and FHarab. 740 Ptayctay*. BOO 
Talkn Trias 815 Brarid ast e«h Rote 8L15 Frith 
to Frith. 8 l 30 Thb b the Dey- 1000 See Heart 
1030 D rari tog Glass. 1100 Computog tor the 
In Tentaed. 1130 Bfethrighte. 

12.00 CountryFBe. 

1U8 Weather for Ihe Week Abead; 


1880 On the Record. Labour taaderaMp 
contender Tony Blafer Joins John 
Humphrya. 

1- 30 CeteCo de re. 

2- 80 Fteve StarflgM One. A taturiatfc alr- 

Bnarteaccktantafiy taxied tatoobtar 

apace during Its maiden faght 
Adventure, stanfetg Lee Majors and 
Latxan Hutton (TVM 19839- 
4-68 U M h e . Actress Joanna Lumlay 
appaata on behalf cf the Ataxia 
Group. 

446 Jbnl Fix It An 11-yae«*i appears 
as e Judge on Maatercher, aid a 
(frees designer's otaems come true 
whan the faaHons she Greeted hi 
1938 era modeled by actress SteBa 
Gonot 

8-30 Meatarchet The ehorts of contes- 
tants from Surrey, north London and 
Somerset In the test aamMteaL 


7.00 

7.30 


Sweat Inspiration. Alan Tttcfi marsh 
talks to antartakiar Marti CMne 
about her dfificuit cMkfxxxl and 
love of Ufa, and Iww being diag- 
nosed as having cancar to 1988 has 
affected her outlook. 

Lestof the Summer Wine. Foggy 
artists the help of Compo and Clegg 
to celabrete the Royal JubSee. 

Fftn: Mexie. A clergyman’s secre- 
tary is possessed by the sptet of a 
1920s flapper. Fantasy comedy, 
starring Glenn Close and Mandy 
PaBnMn (198S). 

Love on e Brandi Line. Rye’s deci- 
sion about the department ta ten- 
dered by a more pressing 
engagement with the vfltage cridot 
team. Comecfy, starring Michael 
Maloney. 

Neeta and Weather. 


4.15 Opan Utewsky. 9.10 Hddey Foode BteL 
6L2S Spree Vetm. 840 Fbvofs Amsrlcre Tabs. 
1046 The Movto Gama. 1040 Qrmgs ML 1056 
EOT. 1140 White Rag. 1146 The 0 Zona. 1800 
Amtnd Waatanteator. 


1840 8undey Gfeamtetand. Introduced by 
8ob Wfison. 12^5 Wbrtd Cte> *94. 
1245 MatorcycSng: The HEAT Cup 
from Oufeon Parte. 1.10 Canoeing; 
Hie World CXp Stafom from Notting- 
Iwra. 1^5 Cricket Top actkxi from 
the Sunday laagire 2.15 Mctore y d- 
fei g. Z4 Q CrickaL 3 l 30 Motarc y cflng. 

- ^ S35TtodngfromTheCuiaghrThe' - 
4J» Budweraer fetah Derby. 4JB 
CrickaL <30 Omoafeig. 450 Motor- 
eyefing. 5.15 CrickaL Times may 
vary. Subsequent programmes may 
run tate. 

646 The Late Sunmer: Dtery of a 

Debutante. Peart Bantngton Crake 
recafe the Edwardtan period before 
(he outbreak of the second world 
war with the hefo of footage from 
the Paths film archive. 

7.18 Baby Monthly. The mothers meet 
Professor Daniel Stem of Geneva 
UnteeraHy to team how babies 
• develop commixilcteion skits. 

8-00 LfeKtar the Sun. fifen ktiowtng Tak- 
arazifrca. a Japanese afr-woman 
song-end-dance company which 
rogiiarty ptays to adorfog femtee 
fans in theafree across Japan. 

Youtg actresses ®e shown rehears- 
ing tiieir male roies, and apprentices 
deserflje why they first apptod tn 
Join the group's music schooL 
Tknewatoh. Ffim shot on location in 
the capitals of Europe recounting 
the dramati c events laadfeig to the 
outbreak of the second world war, a 
time of pofidcal intrigue and mfttary 
ambition when the destinies of ml- 
fions were decided by a mare hand- 

urtliiluln TlmrauMvJi Airurrilmin 

or oncers, i trnawatni oxananes 
the mrxdsr of Archduke Rarz Ferd- 
inand h Sarajevo and the Imperial 
ambitions of German Kaiser VWV- 


BjOO GMTV. 146 The Lfedaat Hobo. HU5 Lfe*. 
HL30 Sunday. TUX) Momteg Worrifra. 1ZOO S«v 
(few. 1240 pm Crantafe London Weather. 


140 mil 
1.10 The Judy FMgen Debate. 

140 At htaUc e; The Europ e an Cup. An 
Rosenthal Introduces the ascend 
and final day from Alexander Sta- 
dhan, Bb n fiBtfiWL 


t.10 Early Momteg. 846 TTw Odyeeey. 10.16 
8evsd by tee Bril 1046 flee tads 1146 Lfttb 
House on «w Pnhta. 

1840 4 Goes to Gteetontrary. The 

harmonious sounds of Mwy Bfeck. 
plue Hghfights of yeaterdayte patfor- 


1-48 


845 The New Scccby Doo Movtas. 1046 Bugs 
Bunny. 1240 Countrywide. 1256 Angle News, 
rratnei (1864 I 


440 Frunze Frame. (198$ BOO Aitfb News on 
Sunday 1040 Ar^ta Wowhor. 1046 Worid C 143 
■94. 


10.10 

10-50 Heart of the Matter. Joan Bakewafi 
explores the moral groisid between 
a person's right to confldanttafity 
and the Interests of the pubSc. 
11.18 Athletic*: European Cop. 

Second-day Nghfighta of the Euro- 
pean Cup from Al e xander Stadlien 
In B ir mingham. 

1108 Advtoe Shop. Gorwunwr contoWnts 
from Cardiff, inducing a look te a 
Social Security appeal tribunaL 
1236 The Sky at Nfghrt. 

18-48 Weather. 

1880 


040 Hhc The Shooting Party. Engfah 
aristocrats gather for a game shoot 
In 1913. Rtto s usp ectin g the 
approaching war ta abort to change 
their fives forever. Drama, starting 
James Mason and Btaartf Fox 
(198^. 

11^8 Movte dr oma. Aiex Cox introduces 
tonight's cult fim. 

1108 Ffatc Sakrador. Ofivar Stone's 

fact-beaad rframa texxrt a veteran 
photo)nxnaBte (James Woods) wtw 
gate entangled te the Moody cfvfi 
war raging te B Salvador. With 
James BeluaM (198^. 

14 


640 The London R afinaews. Camaras 
..fallow an v feorme nln l btelfc otfeetm^ 
as food pteaorfng raatewa Its peak 
during file summer months. 

8-00 London Traded; W eather. 

880 ITN News; Weather. 

0-80 Through the K ey h ole. Sir David 
Rote presents efips tom pate pro- 
grammes and gtas viewers a 
chance to win a irip to Halywood. 
Last te series. 

740 Mother's Ruin. 

7-30 Sch oflekfe Quest. PMfip Schofield 
presents a one-hour apodal tevasb- 
galing human kitarast atortas and 
giving viewers a chance to befa 
solve mystertas. 

8^0 Ftam Dances wfih W oive a . PratM- 
are of the Oac w wi nning Vfea tam 
epic, drectad by and starring Kevin 
Costner ss b cSsttas/onad Union offi- 
cer who skmvty wtos the trust of a 
Skxoc Indtan tribe. Concluded 
tomorrow night {199(^. 

10 JM World Cup *94. Uve oewerage of the 
second half of the Group A match 
between host naben USA and 
Romania. 

11410 ITN Navm; Weather. 

11.18 The House of Windsor. Kate makes 
an error which leads to confusion 
and chaos cfaring an a l Im portant 
Japanese state vtafc Comedy, star- 
ring Warren Ctarke and Louise Ger- 
maine. 

11-48 Cant Eatewoodfc The Man from 

Ma l pea o The legen d ary movie star 
tafia the atory of how he shot to 
feme and became one of the big- 
gest box office aensafions In Hofiy- 
wood history. 

1880 -Thai 

14D G 

14B C 

2.10 Married - Wtfa Chfidran. 

2-40 FOm: DoeOnteton America. Drama, 
s ta rring Broca Greenwood (TVM 
1987); 

440 Snootoarc The European League. 


880 


740 


880 


10-10 


1-00 


FTteeTTw Little Fans. Adaptation 
of a Broedw^ play about a famfiy of 
corropt end g reatly a u hame ra In 
poat-CM Wre America who wrii atop 
te nothing to outwit each other. 
Stonteg-Bette D e vte an d I ta r bart- •*-; 
Marshall (1941). 

4 Goes to Qtaefeonbuy. Another 
\Mt to the UICa premier annual rock 
feadvaL feteixtng music by American 
tengar-e u ngwi Wa r Jackson Browne 
and hard-core anarchic inrfJe rockers 
Chumbawamba. 

The Cosby Show. 

News Sursmwy. 

Secret I Se t ory: The Soviet W i ve s 
Affair. The moving stories of British 
servicemen who married Russian 
women wttia stationed h the Soviet 
Union during the second world war, 
only to be se p ar a ted by their 
re ap eettve govemme nta jurt days 
after 1 lying the knot Despite atrenu- 
oia camprtfyikig by the British hus- 
bands and halfhearted lobbying on 
the pert of dfotomtfe, many of the 
oouplae were never mutated. The 
programme ro vee ta why these 
romance® were crushed, and shows 
how the Atttaa gov ernm en t misled 
both the pubfic and prase about the 
true state of affaire. 

Hfac The Bnafisaakaraia. A we alth y 
rancher Mrea a group of mereeraates 
to free Mb wfia from nrthtaas Mexi- 
can Mcfeiappera - but the would-be 
rescuers make an unexpected dte- 
oovery after flnafiy tracking down 
their quarry. Western action adven- 
ture- staring But Lancaster, Lee 
Marv in . Robert Ryan, Woody Strode 
end Jack Palance (1968). 

4 Goes to Gfastoffowy. The annual 
music spectacular cfeaws to a dose, 
wtth final performances by Mancu- 
nian bands James and Inspfral Car- 
pets. Colchester-based Qiitar 
combo Spttutibsd, aid current 
msdta dofatgs Bks. 

Mamie Convare afl o n a. 

FBnr Mferror. Director Andray Tar- 
hovakyte tetiobfapapMcti drama, 
presenting a vivid portraft of chid- 
hood memories and famfiy retation- 
sMpo. Starring Margarita Terekhova 
and PNfa> Yankowaky (1974). 


846 The Near Scooby Doo MoWra. 1046 B up 
Bmqr. 1240 CerWta Merraraedr. 1856 Central 
Nwra 440 Get Wte 448 Garderthg Tfene. 540 
Mwrtar, She Wrats. 6.15 CarMl Neara 1040 Locd 
Waothar. 1045 World Cup *84. 


8l 25 The Nwi Scooby Doo Modes. 10-06 Bug* 
Bunny- 1240 Rafiection s . 1246 RendaB-Vbue 
Omancha: 1240 Tfekfamte 440 Carton Tima. 
450 Htohwey to Hseven. 546 SunivaL 815 Chan- 
nel News. 1046 World Cup *84 


946 The New Scooby Doo Movies. 1006 Bugs 
Bunny. 1U» Saute Bsrvtoa. 1146 Oton. 1240 
Gardanarta Diary. 1855 Grampian HaadfetoS. 420 
Mgei ManadTa tedyCar *04 550 Wortd Cup Hsfl of 
Faroe. 640 Moriee. (tones end Videos. 800 The 
RHer. 810 AppaeL 815 GVamptoi Haotenee 1040 
tawrptai Weelhar. 1045 World Clto *84. 


9l 2S The Naw Scooby Doo Mowias. 1806 Buga 
Bny. 1226 Chafes Chahe. 1256 Granada Nam 
426 Skrt ma a tas . 440 Tha Mrtdng ol Danoaa wfeh 
Woteea. 815 Coronation StraeL 815 Granada 
News 1045 World Op Vi. 


825 The Near Scooby Doo Mate. 1048 Bugs 
BunrqL 1225 The UHM Hobo. 1256 HTV News. 
240 HTV NeafSWMk. 240 AthtaUcR Tha European 
Cup. 420 Chafiange of Hie Star. 540 Cartoon 
Tbne. 815 On Your StraeL 545 Great Waetamara. 
815 HTV Naws. 1040 HIV Wwtfwr. 1045 World 
Civ ■94. 

KsTheNaw Scooby Doo Mata. 1006 Buga 
Bunny. 1240 Sevan Dtes- 1250 Matfdtai Neara. 
440 Cartoon Tima. 450 l l d m a y to Haovan. 545 
Sunhta. 815 Maridan Noras. 1045 Wfetld Qte *04 


925 TTw New Scooby Doo Mortaa. 1006 Bugs 
Binny. 1140 8 mfe 9 Service. 1146 Btan. 1240 
Staxnh. 1286 Scotland Today. 450 Cartoon Tfene. 
445 Startteg from Scratch. 815 The A-Ttom. 810- 
Scottend Today 819 AppnL 1040 Seottah 
Weather. 1046 World Cup *94. 

Trite im 

925 The Nmr Scooby Doo Modes. 1046 Bugs 
Bunny. 1225 ta rawfc 1256 Tyne Tees Nea ra . 
Oartoon Time. 440 Father DowOng fcwee H . 
650 Tyne Teas Waafcend. 1046 Worid Cup 


er 


825 The New Scooby Doo Movies. 1046 Bugs 
Bunny. 1220 Wfeato aia w y Update. 1256 WM- 
oountry News. 420 Brief Encountoa. 540 Boom- 
ing Marvellous. 520 Murder. She Wrote. 815 
Waeteountiy Neara. 1048 World Cup *84 

026 The New Scooby Doo Movies. 1046 Buga 
Biray. 1226 The UttM Hobo. 1250 Ca le n dar 
Naws. 420 Cartoon Tfene. 450 Father Oowflng 
tnv a e M pBtae- 860 Calendar Neara and Weather 
1048 bxte Wowhar. 1046 World Cite ’04. 


RADIO 


SATURDAY 


SUNDAY 


BBC UMNO 8 

800 Sutata Bract 805 Brian 

Matthew. 1040 Jud Spins. 

1240 Hayw on Saturday. T40 

You Cant Have One Without 

tha Other. 240 Roy Huddta 

Vintage Musto HriL 2L50 Renta 

HKon. 440 Peut Hatoey. 040 

Nkk Barradough. 800 Bob 

H oinaa a Requeeta the P lae aiira . 

740 Cfewme 2. 720 Watoh 

Wbrtar Prom. 820 Devkt 
Jacobs. 1040 The Arts 
Programme. 1248 Ronnto 
NBon. IjOO Jon Briggs. 440 
— 


810 The FWTTtag Wa*. 

850 Prayer tor the Day- 
740 Today- 

040 Neara. 

045 Sport <x»8 
520 Breakaway. 

1040 Whatever Happened To? 
1020 The Medareon 

rt rartanc e . 

1140 The WMk In 


1150 Europrito. European 


BBCnUMOG 

860 Open U n taaraBy; Science 

MaBara. 055 Wether. 740 
Bacoid Ravtarr. BOO BuBdng a 
LKxray. Moosffs Ptsno end 

Wind Qufetat In E taL 1815 
Beootd Rajaaeo 1240 SpW rt 

<ha Ago 140 Poetty fe« Acdon. 

1.10 Tokyo Quarter. 340 
OWnt M In Good Tfene. 540 

J«a Reooid naquaara. WHh 

pmOmyOamn. &(5Mwb 

Itot raa. A new Moyaptaf of 
Petra mmumH Darriea. 020 The 
Jesobbi. DworaKV open of t 
torigua and ftiandaNp. Sung to 
ftach. 81SThe Bobfcte 

Ptafetat By Fernando P aeaoo 

teat hi Mriee. 9L26 Noctome* 

M Batata. James Patten, 

Chopin, Raurarhome. Berber. 

1830 Jazz at die Bam FeedvaL 

New aaritaFfetr of three 

concerts. 1220 Cfcraa. 


1240 Monte Sbx. 

1226 r» Sony I Havant a 
Ckra. Panel game. 

140 Neara. 

1.10 Any Quoatlane? 

240 Any A n ewra ra? 071-560 
4444. Phone* response 
pregramme. 

220 Ptaytiouee; Slop to ?. 
CMdrarfa Laughtor. 0 / Haroy 
Livings. 

440 ThraY taatory- 
420 Sdsnco Now. 

240 ne on 4. The hkfctoi 
world of BqUdtoore. 

540 The Wanfecbe. Ttoussra. 
040 Noras and Sports. 

026 WOok Endhte- 
050 The Locfcte Room. 

72D KMeidoscope Feature. 

7 jo sprite 

epootteg et M Moca flotiin 

Gtowfen«tatfej»*«*“** ,tn B 

thecoBapeeoffiwManchu 

Dynasty in China. 

220 Musta *J Mted. 

250 Tan to Ten. 

1040 News. 


1815 Wont of Morah. 

1846 Swvtvlng In Stroke CRy. 

Qany Andanon refiocts on Ba 

In Northern htaraxt 
1150 The Tbigto Factor. 

1120 The Larita Lstkare - 

1865-1988 
1200 New. 

1238 ShtppteB Forecast 
1243 Ctooe. 

1243 fiJW) Ae Worid Sarvioa. 


Bta C BA OfiOBUWI 

646 Ofety Taoida. 
oaaihe D nral tfaat ftcteamme. 
840 Waakond wSh Ksrahaw 


H465peoM Aadgnmant 
1126 Crime Desk. 

1200 Uddte Edfekm. 
1218 Sport on Fim 

726 Sattatay BMon. 

026 Out This Vtaofc. 

1048 Tha Treeonratt. 

1140 Extra. 

1246 Aftra Horae. 

240 Up Al MGfX. 


BBC for eurape can be 

r eca fera d in raeearan toeepe 

era Rtadkaa Ware BOB hHZ 

(463R4 at there tfenee BST: 

800 Momanr na g e an. 830 
Europe Today- 740 World and 

SrfiM) Neara 7.16 The World 

Today- 720 Matldtan. 840 

Worid Neara. 815 Wteragrita 


026 Book Choioe. 830 Peopis 
and PoHoa. 040 World Nevw. 

046 Wonla of Frith. 816 A 

Jofey Good Show. 1060 Worid 

News and Buatoeae Report 

1815 World Brief- 1020 
DeaetopmsM 94. 1045 Sports 

Rowxfetet 1140 Mart Data. 

11.16 Letter from America. 
1120 BBC English. 11-46 
Mlttagsraasazln. 12.00 
Newadaak. 1220 Meridian. 

140 World News. 140 Words 

or Itoh. 1.15 Mueferadc 8 846 

Sports Roundup. 2-00 
Newshour. 800 News 
Sum m ery . Sport s wor ld . 440 

World Neara. 4.15 BBC BigOto. 

420 Hatae AMrraB BOD Worid 

end British News. 818 
S pottawotto. 640 BBC BnteMr. 

860 Haute Akhrafe. 740 Nows 

and fatairea bi Qnrw 840 

Msara Srorairey; Oranfexra. 620 

Boupe Today SpacW. 800 

World Itaam. 048 Vteds of 

FaWv. 9.15 Development 84. 

828 Mo ri ile n . 1040 N et re ho ur . 

1140 Wortd Neara. 1146 
words of Fatal. 11.10 Book 

Choioe. 11-18 Jazz tor the 

Mtag. 1146 Sports Roundup. 

1240 l le elrt rel r . 1220 Boat 

on Record. 800 World and 

British Now*. 1-16 Good 
Books. 140 The John Oram 

Show 240 News Srattnary; 

Play of tfra Wtaic The Putton. 

340 Ha weries l r 320 The 
Gretas* Muric FtotM in fire 

Wold. 440 l la w a daalr . 420 

BBC En0teL 446 News aid 
'In 


740 Don Maclean. 80S 
Mehaal Asp at 1040 Nafional 

Music Dm y. 1146 TWy Hal 

1140 Hoot* Man) 1126 techyri 

Dai 1240 Gutter tbeata. 140 

Roy Caade Seringa with the 

BBC Bg Band. 146 Ffentay 

Favourites. 240 Bagonsh Vs 
the ChMIatesl 340 Srfiata 

Brant 320 Alan -fltchmareh. 

440 Cafe That Singfagl 420 

The teaafeata Organ Show on 

Earth. BOO I4t and toe Widow 

Present A Bhriteta Guide to 

British Muaie. 826 The 
Rewa rena Hogw Boyle. 6L00 

Nerya H u ghe s - 040 Ipawkrii 

Cotaxataa NaSorta Music Day. 

740 Dlal-a-Sonfl- 728 

Ghxrceater** 38 Hour Muato 

Ma rathon. 840 Johnny Cash. 

840 Gtorta Harita f ord and 

MrartVfif KaBy. 1040 The BBC 

National Ore h ae tre of Wales. 

1140 Georgs Sh earin g . 

Steve Madden. 340 


Music lor Oboe. 8fcnon 
Betobridga. Mccoto Casrigtort. 
Mefenda Mteonfe, Barfo. 
LiBoatewaH. Sfenon Ho8 720 
Suiday Play: The Ghost 

Sonere. Strindberg’s eerie 
m rater plaos. Wah Ftarik Rntoy. 

040 Muds In Ou- Tfene. M20 

Choir Works. 1220 Ckrea. 


RADIO 4 


020 Open UnN a refey- W el ti s. 

056 WaaBrei 740 Sacred eed 

Prefene. 040 Brian Kay^ 
Swttayfefraitag. 12.15 Music 
Mattare. 140 The Swidte 


OWPiWude. 

OZOMomfeig Has Broken. 

740 Nam. 

7.10 Sonttay Paper*. 

7.16 Tha LMng World. 

740Suvtay. 

B5D The Week's Good Cause. 
8401 
810 i 

816 Latterfrom Americe. 

020 Morning Sendee. 

1816 The Archsre. Omrtoira. 
11.15 Msdhanerave. 

T14SThe New Euopeera. 

1216 Desert Wand decs. 

140 The World TTta Weekend. 

240 Gardener a * Ouaetion Tfene. 


320 Pick of the Week. 
4.15 Antayafe. 

840 Margaret 


415 The BBC Ortavretme. 

Stoafera Thhteaaafey, 
llranatewditoaUO 
Mtatag Wares. The 
reuni f y of l ap ra t— peat 


520 Poetry PtoeeW 
944 Sbt O'clock New*. 
810 Feedback. 

520 The Secret Ganton. 
740 Pfejtopie. 

720 A Good Head. 


540 (FM) Theta tetany. 

800 (LW) Open UnNerafey. 

840 W Hearing Haevea 
860 fVO The Naturrt Matory 
Piugirairoe. 

920 FM) Big Bang 
1040 New*. 
lalBRUCon Duty. 

1046 Horae Truthe. 

11.16 In Comtnftao. 

1146 Seeds of Faith. 

1240 Nseu. 

1220 stripping Forecast 


RADIO 0 UVE 

646 Hot Pursuit*. 

830 The Br ea kfast Ptogwnme. 
840 Mesttar Stewarts’ Sunday. 
1240 Midday Edfefon. 

1216 The Biff Byte 

14* Srexlte Sport 
740 Nows Extra. 

726 Black to As Rram 

840 The uatmree ProriewL 

1046 Special Assignment. 

1026 Crhna Desk. 

1140 Mgftt Bora. 

1246 Mfftrarao 
240 UpAl MghL .. 


BBC for Euope can be 

received h w reas m Baope an 

MecOan Were 6*8 JrHZ (463m) 

at (he re times BSD 

040 Ne e e end features In 

German. 020 Europe Today 

SprataL 740 Worid raid Brthh 

News. 7.15 Latter from 
America. 720 Jazz For The 


Asking 840 Worid News. 818 

Muric As 8 Wte. 820 From 

Orr Own ConrepondanL 820 

Write On. 840 World News. 

040 Words of Fsftfv 8TB Ray 

on Record. 1040 Worid News 

end BuefcMSS Review. 10.15 

Short Story. 1030 FoK Routae. 

1046 Sports RgmAp. 1140 

Naws Summery; Science bi 
Action. 1120 BBC Engfeah. 

1146 News and Preae ffe wtaw 

to German. 1240 Mowadealr 

1220 The John Dunn Show. 

140 News Swnmenc Pkv of 

the Weak: The Platan. 240 
Newshour. 800 News 
Swrenray; Al O re eeed Up. 320 
Anything Goes. 440 Worid 

Neara 4.15 BBC Bi ghte 420 

Neara and fsntivre to Garmon. 

540 World and Briflah Neara 

815 BBC Bififeah. 040 Worid 

News and Business Ravtarr. 

816 Fritter'S Deri. 880 News 

end tenure to German. 840 

Beet on Record. 830 Bnpe 

Today- 040 Worid News. 800 

Words of Faith. 816 A 
Question of Stance. 820 toeto 
of Brttafex 1040 Newshour. 
1140 Worid Neara and 
Brteieae Rorieat 11-16 Short 
Story- 1140 Letter from 
America. 11.45 Sports 
RouncAte- 1240 fl ew a de a k. 

1220 AH Dressed Up- 140 

World tod British Neara 1.18 

Pop the Question. 120 to 

Prates of God. 240 News 

Sunmary; A Dey In the Life of 

Heathrow. 246 Mrftae As It 

Wte. 340 Nevreduk. 020 

G e nte O—r of tea MMh. 440 

►learedata 4jo BBC ta^hh. 

448 FnftvnegazfeL 


WEEKEND FT XXUI 


CHESS 


Nigel Short and Michael 
Adams are through to the Intel 
world championship semi-fi- 
nals after surviving the haz- 
ards of speed chess play-ofife at 
New York’s Tramp Tower. 

Short defeated Boris Gulko 
of fhe VS ht their third tie- 
break while Adams required 
all of six speed gwo 1 **, ending 
in a 104-move marathon, to 
eliminate Sergei Tiviakov. 

One of Adams* specialities is 
his home-made op ening reper- 
toire with the white pieces. 
Here, 2 cS against the airman 
avoids most book lines, and 
play really starts when his 
shrewd 14 BgS provokes slight 
but ultimately decisive gaps in 
the Russian’s defences 

M. Adams, White; S. Tivia- 
kov, Black; 6th game 1994). 

1 e4 c5 2 c3 d5 3 exdft Qxd5 4 
d4 NfB 5 NfS Nc6 6 Be3 cxd4 7 
cxd4 e6 8 Nc3 Qd6 9 a3 Be7 10 
Bd3 0-0 11 0-0 b6 12 Qe2 Bb7 
IS Radi Rad8 14 BgS g6 15 Bc4 
Rfe8 16 Rfel NdS?I Na5 17 Ba2 
NdS seems better, to recapture 
on dS with a piece and keep 
White’s d4 pawn as a target 

17 Bxd5 esdS 18 Qd2 f6 19 
Bft Qd7 20 b4 gS 21 BgS Bf8 22 
h4 White's 20 b4 gained Q-side 
space, and now he softens up 
the other flank. hB 38 hxgS 
hagS 24 Bxe8 BxeS 25 Qa21 
Ne77 NdS keeps d$ guarded, 
stopping the white knight's 


Bg7 34 NCL f5 35 Be5 Plugging 
one weakness creates another. 
Black prevented Ne3-f5. but 
amceded the S square. 

Ng6 36 NgS B*e5 37 dxe5 
Nb4 38 Ndz25! Nxf5 39 e6 Qh7 
40 Ni5 Bb7 If Black takes im 
f5, the e pawn promotes. 41 e7 
Re8 42 Re6 Bc8 43 Qxd5! 
Resigns If BxeS 44 Qxe6+ Kh8 
45 Kg8 48 Nh&f- wins. 

The semi-finals start in Bar- 
cekma on September 28. India’s 
Vlshy Anand will be the 
favourite against Adams, while 
Short v. the US number one, 
Gata Eamsky, looks dose. The 
eventual winner challenges 
Gary Kasparov in 1995. 

NB: hi last week's game, 
Black's 24th move was Be5 and 
Black's 25th Kh7. 



26 Ne4 Bg7 27 NdS Bd8 28 
Rel Bc6 29 Qe2 Ba8 30 Qd3 BIB 
» b5 Bh6 32 Bel RfB 33 Nh2 


Chess No, 1027 

White mates in five moves 
against any defence (by Erode 
del Rio, 1763). 

Solution, Page XXII 

Leonard Barden 


BRIDGE 


A bund from rubber bridge of 
fair standard — Faulty Timing: 
N 

*K? 

f 843 

♦ A85 

# J87S3 
W E 

4Q85 4J6432 

¥72 f6 

♦ K J 9 + 10 6 4 3 

4 A K Q ID 2 #954 

S 

4 A 10 9 

¥ AKQ J10 9 5 

♦ Q72 

4 - 

West dealt and opened the 
hirtftmg - with aoe dub. After 
two passes. South re-opened 
with two dubs. North replied 
with two no-trumps and South 
re-bid four hearts. This jump 
prompted North to bid five dia- 
monds. South Ud six hearts to 
dose file gnetten- 
West opened with the dub 
king. This was ruffed high in 
hand and declarer drew the 


trumps with eight and queen. 
He then cashed king and ace of 
spades and ruffed a spade with 
dummy’s last tramp. He raffed 
another dub in bis hand at 
trick seven and played Off two 
mote trumps to prepare fin* a 
squeeze against West 

In the four-card ending, West 
held KJ of diamonds and AQ of 
dubs, dummy held AB of dia- 
monds and J8 of dubs, while 
South held 9 of hearts and Q72 
of diamonds. Declarer played 
his heart but West discarded 
queen of cluhs. South lost two 
tricks and the contract was 
defeated by one trick. 

Can we do better? At trick 
im>, we allow the dub king to 
hold - we have rectified the 
count We ruff the next dub 
and proceed as before. In the 
thre&card ending, all West’s 
cards - dub ace, and king and 
knave of diamonds - are 
“busy”. He is really squeezed. 

E.P.C. Cotter 


CROSSWORD 


No. 8,489 Set by ONEPHILE 

A pate of a clastic FeMran Sonvwfin 800 ftm niri a pan, inscribed with the 
winner's name far the first correct solution opened and five runner-up 
prizes of 2S5 FeUkan vo ud i ei s. Solutions by Wednesday July 6, marked 
Croon word &4S9 cm the envelop*, to the Financial Time*. Number One 
Sottttamk Bridge. London SE1 9HL. Sahttfam on Saturday July 9. 




fax piece of 
- person to per- 
t evoi able to 


10 Piece 
biography I 

11 Instrument 
form verse 

12 Where one 

IS He* re*, 

effect (3,4) 

14 Patient sufferer in “Travels to 
Iceland" (5) 

18 Fur far stars and emperor©) 

19 Motorway vision about street 
where horses should ccaitinoe 


DOWN 

2 Via (5,4) 

8 Ring where the hull has it, 
round Its neck? (6) 

4 Low sound, loud in a cham- 
pion, belonging to Blake’s 
and Dubcdfs socialism 



5 Managed church and stock 
farm . .. 

6 Small works - for quick writer 


so 


near the mouth <E) 
with 


the lad 
CO 

25 Wrong place to find a carni- 
vore (7) 

27 Co n v ers e of where princess is 

28 Pansy sort of instrument? 

29 fa’s the dean’s job to 
the contents briefly (7,7) 


7 One with business on a Span- 
ish IvTwnrt (5) 

8 Grouse like a youth about his 
hostel? (7) 

9 Counter account, Am erican, 
led by sailor (G) 

IS Competitive sort of r az or (9) 
com- 17 Watch the enemy speaking 

18 SSdco^rfor joint ruler? (4-6) 

19 Musical doctor without some 
loss (7) 

21 in the wrong direction as a 
carrier (G) 

23 Qpere goes to part of opera 


Solution &488 


24 Painter that will last? (5) 

26 Four through cover makes 
one very angry (5) 

Solution 8,477 


ODD 
□ a 

□1 

□ 

anna 

□ 

a □ 

□ 

□□aa 

HI 

a □ 
aasa 

□ 

□ 

U 

□□□□ 

ni 

□ 

□ 

3000 

□i 

a a 

B 

□DQ[D 

BI 

□ Q 

□ 

O000 

□1 


□ LJyLjECaQ 
D □ D Q 
L3QDQQUO 

□ □an 
□□□□DDE 

n o 
EJDHDBQE 
DDE 
LJ HQ Pi cm 

□ Bn 

BDDDDHG 

□ □BE 

□ QOHBB 
ID □ □ □ 
EOQUO 


WINNERS M77: Mr* M. Watson, T rirn wh u , 
neft. Sheffield; R. Doudas, Newton Meams, Ghtagow; Mrs 
Leicester; Miss WMtstabte. Kent; J.W. Newton. CWp- 

ping Canipden, ffloe. 



9BCRAM0 4 










XXTV WEEKEND FT 


FINANCIAL TIMES WKl£KKNDJt>NE 25/JUNIi 26 » 



This week I 
received a visit 
from a man from 
the Iranian 
embassy, or rather, 
as his card 
specified. The 
Islamic Republic 
of Iran. He was 
not wearing a tie. 
They do not, in the Islamic 
Republic. I believe it is something 
to do with the tie being a Christian 
symbol, crosses and all that, which 
keeps the Iran of the ayatollahs 

an open-necked zone. 

Open-necked is not quite 
accurate. The man from Tehran 
had his white shirt buttoned (on 
a very hot day) to the top. Now, 

I do not want to argue that I would 
have been friendlier to my visitor 
if he had been wearing a tie: we 
opinion formers are never so 
superficial, even after a good lunch 


Wrestling with a knotty problem 


Dominic Lawson confesses to an increasing affliction — clothing cowardice 


on a hot day in the City. But the 
emissary's strict adherence to the 
dress code rtf a regime we tend 
to regard as a fanatical alien 
theocracy was not designed to put 
me at my rase. 

Clearly the man could not have 
been a spy. But what must he have 
thought of me? Here, in an office 
lacking air-conditioning with the 
windows bolted shut against the 
noise of passing traffic, sat the 
Englishman In a suit and tie, 
drinking hot tea with milk. 

Which of the two men could be 

said to have the odder customs, 
at least as Ear as dress is 


concerned? The encounter set me 
thinking. Why should I not come 
to work in the summer dressed 
in the open-necked style which 
pleases me, rather than some 
unfathomable code of etiquette. 

This tie business is a particular 
problem. I like my existing range 
of shirts, but in the past, while 
the sleeves have kept their length 
nicely, the collars have 
mysteriously shrank In the wash. 

Every weekday morning there 
is an awesome, asphyxiating 
Straggle to lock the tie into place. 
The blood supply to the brain is 
Impaired, and the ideas winch I 


woke up with, dwindle in direct 
proportion to the diminished 
supply of oxygen. 

There is no excuse for tins. It 
is not as if there was some senior 
figure in the office who could tell 
me that I was not properly dressed 
without a jacket and tie. Nor would 
I have any trouble getting into 
restaurants. With the exception 
of the Savoy Group and the Bits, 

I can think of few places of 

executive entertainment where 
the traditional dress code is rigidly 

enforced. And even there the staff 

will gladly lend the casual diner 

a temporary jacket and tie. I 


suppose It all bolls (town to that 
awful of the middle-aged; 

the desire to be taken seriously. 

1 am frightened to be mistak en 
for an advertising copywriter or 
a member of the bohemian 
intelligentsia - my office is 
dangerously close to The 
Guardian's. 

At weekends too, I am 

Increasingly afflicted by this 

dothing cowardice. When I am 

to Gloucestershire, solid fanning 
country. I do not want the passing 
men of the soil to realise, before 
I open my mouth, that 1 am an 
interloper, a man from the 


“smoke", as they call London- So 
I most wear a Barbour Jacket, old 
conhmjjr trousers, and unctowed 
green wellingtons. I am still, of 
course, betrayed by the speed with 
which 1 drive my car around their 
narrow lanes, but there ore 
sacrifices my temperament b not 

prepared to make, eves for social 

acceptability in the shires. 

There are certain people, back 
la the &ty. who think they haw 
found the answer, who have 
developed an item of drees wMch. 
is meant to proclaim: Z have 

« good and responsible job, hut 
I am more witty and Imaginative 


than the rest of you bona." 

TWs item tatriMHfcttMrito 
But, white I have one or two 
Mends who pmtntMWt 
sartorial state***, I 
can. ail agree that, on the WkeSto. 
bow-tie wearer* ait wtoai’tm 
the circumstantial evidence It 
comparing. 

Indeed, had U» man from the 
Iranian embassy come hrto oiy . 
office wewrln* a bow ttoJhjotttd 
have been even more andl m y tic . 
over the matter oT Safina# itoshdli. 

You will have noticed that 1 have 
touched only ou the matter of ami* 
dress codes. AM nwwoMaMJr ** 
White U la true that the rifttte: 
drea* of worn in the iatate 
RjqmbHcoflriw is not attitttf 0* 
variety, over hew only a MHK 
could scratch ton surface* to deep 
and mysterious a soda! tarn 
■ Dominic l^awsat is Tim 

Swdofor ' 


Private View / Christian Tyler 

Breakfast 


with a 


one-man 
welfare state 


T o be invited to breakfast 
and discover your host 
making tea and toast in 
his dinner jacket is 
mildly disconcerting, 
especially if he is nearly 79 years 
old. 

Could the famously unconven- 
tional Michael Young (less well 
known as Lord Young of Darting- 
ton) have just returned from an all- 
night, end-of-term, party? Unfortu- 
nately, no. He was just saving tima 
• ahead of an evening en g a g ement at 
Gfirndeboume opera. 

But since it is nearly the end of 
team and s p i ce it is also the 25th 
an ni vers a ry of tins Open University, 
the creation of which Michael 
Young inspired (the OU now boasts 
more than 200,000 students and has 
been copied in 30 countries), it 
seemed a good time to find out what 
this remarkable entrepreneur was 
up to. 

Lord Young is too gentle for an 
entrepreneur, too modest for a 
visionary. Listening to the thin, 
quiet voice it was hard to picture 
the social revolutionary who, 
among other things, drafted the 
1945 labour Party manifesto foun- 
ding Britain’s welfare state, coined 
the word “meritocracy” (to warn of 
its dangers) and created the Con- 
sumers' Association with its enor- 
mously successful magazine, 
Which?. 

He has a talent for originality 
rare in a conformist world. He sees 
what is happening rather than what 
ought to be happening, describes 
what is lacking, and sets about 
creating an organisation to supply 
it It is a corn-man welfare state. 

One of his latest wheezes - a pre- 
diction, really, for the next century 
- is the "open school". K is his 
solution to the problems of truancy, 
disruption and academ ic failure and 
modelled on the Open University 
principle that every student is a vol- 
unteer, not a conscript 
Children are growing up sooner. 
Lord Young observes, but the time 
they spend in schools gets longer. 
Therefore they should, if they wish, 
be able to leave at any point after 
primary level and do something 
socially useful under supervision - 
Including learning from home - 
until they are ready to resume for- 
mal studies lata: in life. 

Utopian, or barmy? From any 
other mouth such an Idea would be 
mocked to death. But similar 
schemes are emerging already. 

“I suppose I am influenced by the 
fact that I was at a school where 
there was little or no compulsion." 
Lord Young explained. He was 
referring to Dartington Hall School, 
the progressive establishment in 
Devon (recently closed after a series 
of scandals). 

“We didn't have to attend classes 
unless we wanted to. And one was 


encouraged to learn through under- 
taking projects of various kinds. So 
when I was 13 or so I mainly 
worked on a poultry form. In the 
woods. 1 also set up a motorcycle 
repair business and bought and sold 
motorcycles. Through the chickens 
I learnt elementary book-keeping 
and how not to make a terrible loss. 

“I was certainly happy there. Z 
think happiness is a good goad to 
teaming It put the i«taa in my mind 
how much more swiftly people 
learn if they really want to and how 
it can be spoilt for them if they 
have to. What may be awful at 10 
may be very agreeable at 13, and so 
on. Children don’t develop at the 
same rate.” 

You went to sane classes at Dar- 
lington I suppose? 

“I went to a few, mmm f was 
mainly interested in painting.” He 
indicated a youthful landscape on 
the sitting room wall and told me 
he had a studio full of pictures. 
"And 1 was interested In philoso- 
phy. If there were any compulsory 
classes they were in philosophy. 
Bertrand Russell's children were 
there too. He was quite a frequent 
visitor and sometimes joined in the 
classes.” 

What about the learning gaps? 
Lord Young's example was not per- 
suasive: he recalled visiting Blen- 
heim Palace as a youth with 
Anthony Crosland and Roy Jenkins 
and marvelling at their knowledge 
of the pointers displayed there. 

Gaps or no, Michael Young was 
able to get a degree at the London 
School of Economics while simulta- 
neously qualifying as a barrister. 
Unfit for military service because of 
asthma, be ran the think- tank Polit- 



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most young children would cer- 
tainly go. You just have to see what 
pleasure children of three get at 
nursery schooL 

“You would have to introduce 
this sort of thing gradually. People 
would be nervous, and rightly, 
about the minori t y of childre n who 
might escape the system altogether. 
Clearly there are a lot of children 
for whom the standard diet is satis- 
factory. They take to it beautifully. 


which was unoanfentioaaL Michael 
Young's father was an Australian 
violinist who turned music critic. 
His Irish mother separated from his 
lather, after foiling for a Russian 
Bolshevik with a flashing smfle. 
and lived the bohemian life: love 
affairs, painting, partying and 
teaching at the Workers Educa- 
tional Association. 

I asked her son what, in founding 
30 or more organisations, he had 


Lord Young inspired the creation of the Open University and 
drafted the 1945 Labour Party manifesto: he sees what is 
lacking and sets about creating an organisation to supply it. 


leal and Economic planning during 
the second world war, joining 
Labour Party headquarters as 
research, director at the end. 

He became disillusioned with poli- 
tics and the outcome of the nation- 
alisation which he Had himself fos- 
tered. So he turned to sociology, 
achieved a doctorate, and lectured 
for a While at Cambridge. He calls 
himgfllf a "libertarian socialist”. 

Open schools sounded fine, I said, 
but with the demands of today’s 
economy could we wait for children 
to feel ready to learn? 

“But you can’t train someone, not 
effectively, who doesn't want to be 
trained," he replied. “It’s not that 
rm against schools, or education or 
anything. I just like them to be 
attractive. If one was to abolish 
compulsory education altogether 


It would, be awful if any changes 
were to upset that 
“In essence they are volunteering. 
So they’ve got to be catered for 
along with the rest You cant just 
have everyone walking in the 
woods and coming back with nice 
charcoal sketches.” He laughed. 

What about “workfare”? Lord 
Young’s voice adopted a stentorian 
authority as he pretended to 
address a defaulter: “Yes. You don’t 
look after people with Alzheimer’s 
disease. Yon haven’t learned how to 
look after a trout fishery in north 
Wales. You have refused to go to 
Africa to help with the irrigation 
scheme in Rwanda. There’s some- 
thing wrong with you, John! You 
can’t expect us to keep you if you 
don't do anything at alL" 

It was not only his schooling 


been trying to do all these years. 

“God knows. Maybe he doesn’t 
I’ve obviously tried to meet a need. 
I think I’ve got a rather keen sense 
of the market - usually not a com- 
mercial market - or of a demand 
that can be met by some innova- 
tion. I’ve always been motivated by 
opposition.” 

He is also moved by what he calls 
“the wonderful potential fn all of us 
that Isn’t being realised”. 

“And I think there has been a sort 
of communitarian or collectivist 
theme. I’ve always thought that co- 
operatives were, on principle, the 
best sort of organisation for eco- 
nomic and social purposes.” 

So the Consumers Association is 
an information co-operative whose 
members act as guinea-pigs for each 
other’s purchases. The Advisory 


Centre for Education monitors 
schools, tie College of Health medi- 
cal treatment His Univeretty of the 
Third Age. set up with the social 
historian Peter Laslett, has retired 
people teaching each other. On his 
"brain trains" it is the commuters. 

He recognises, however, the fail- 
ure of most workers* cooperatives. 
That had been a disappointment, he 
said. 

Are people fundamentally collabo- 
rative or selfish? 

“Both. But I think what we’ve 
played up is the selfish side of it, 
and the collaborative aide has been 
played down. The way we think 
about society and manage it - I 
think the whole thing is out of bal- 
ance.” 

Many people must think of doing 
something when their toaster 
doesn't work, I said. But you go and 
start an organisation. What makes 
you different? 

“What I learned from Dartington 
is the practical, or administrative 
sense. I don't think I'm a good 
administrator of something which 
is routine but I think Pm a good 
administrator of something which 
isn’t yet bom because I have a 
rather good head for detafl." 

And because you know how to 
work the system? 

"I can often see where with small 
effort you can achieve a relatively 
large result" 

He guards against failure by 
looking for people to find fault with 
his schemes. “The most valuable 
people in any new enterprise are 
those who think It’s no good.” 


You seem to mjay omdj&f flam 
bodies as much as seeing tite bene- 
fits. 1 said. 

“Once something’s going, tt.it.fe 
going, rm happy to leavett. Unfor- 
tunately 1 find It y flffio pft not to 
keep thinking of things to be dona 
They come streaming into my 
mind." • ■ 

His latest project h to improve 
the rites of death, ft may have less 
to do with bis ags than with the 
premature death exactly a year ago 
of his second wife, Sasha Moarsom. 
It is obvious he misses her a great 
deal *T would have liked to have 
died before her and to change 


hatfto 


places with bwJtcop.of 
die," he said, almost art 

He sport horns in research at cre- 
matoria watching the hurried rou- 
tine enforced by the expense of the 
machinery. "Btodtog people to the 
. pace of the magfahw can give a voy 
inhuman result,* he said. "It te even 
more terrible than I thought" Hto 
National : Funerals College, 
launched this month, alms to rem- 
edy that by putting clergy, funeral 
directors, counsellors and cremato- 
rium managers together: 

There is yet another project on 
the books, to do with the beginning 
of life. But that is still a a secret 



I am enjoying the 
World Cup. Soccer 
is the world’s game, 
and will be one of 
the first cultural 
activities mankind 
establishes on for- 
eign planets once 
we embark on space 
colonisation. 

Many astronomers believe that 
the galaxies teem with intellig ent 
life. Some astronomers believe that 
colonisation must be well under 
way in many galaxies, including 
our own. As stars wax and wane, 
people migrate towards the galactic 
core, in search of fresh worlds, and 
discover that the galaxies are 
veined by refugee and trade routes 
streaming inwards, towards concen- 
trations of civilised life. 

I like that theory . I behave it to be 
true, which leads me to imagine 
that somewhere close to the centre 
of our own galaxy - perhaps at this 
moment - a variety of beings are 
competing in the Milky Way World 
Cup or soccer-playing planets. 

avm tirn distances, and the prob- 
lems with travel - strikes by signal- 
«£the congestion at stellar inter- 
- I doubt whether 


An inter-galactic goal 


Michael Thompson-Noel 


m^ w X-_ w , neuier 

«ay World Cop is staged at 


intervals shorter than 10,000 light 
years. But it must be fun when it 
happens. Imagine the advances in 
tactics and the improvements in 
framing methods that must be dis- 
played at this galactic soccer festi- 
val once every 10,000 light years. 

From that perspective, our own 
World Cup is a primitive thing 
indeed, ruggedly prehistoric, played 
by coarse creatures barely oat of 
the slime stage, evolutionarlly 
speaking, though much further up 
the scale of soccer-playing life, It 
has to be admitted, than the crea- 
tures from countries that foiled to 
qualify - many of whom, unfortu- 
nately, are at a pre-language stage 
and do not use utensils to cut meat 

I am lucky that I can watch the 
World Cup undistracted by distaff 
chattering. I am watching the 
World Cup on the smaller of our 
two television sets, in a comer of 
the dining room, while Miss Lee, 
my executive assistant, is 


HAWKS 

— & 


HANDSAWS 


- * m - 



ensconced in the sitting room, 
which she chooses to call the green 
room, watching Wimbledon, or 
films about surfies. 

She watches nothing else. She is 
contemptuous of soccer - except, 
that is, for a handful of Latin Amer- 
ican players whose careers she 
monitors with wistful devotion. 

I bumped into her the other even- 
ing. 

She said: "Hello, Michael How is 
Valderrama doing? Is he Juicing 
things up?” 

I said; "Codas Valderrama, who 
Plays for Colombia? What a big 


girl’s-blouse. All that ridiculous 
hair, and what does it add up to? 
Nothing whatsoever. Colombia are 
finished. They haven’t won a point 
What a load of rubbish.” 

“How about Etcheverry, that nice 
Bolivian? 1 imagine he 's surging " 
Tm afraid that Etcheverry 
kicked a German and was shown 
the red card, so it’s goodnight to 

him- 1 * 

“Caniggia of Argentina?” Miss 
Lee looked distracted. “Surely he’s 
prospering, thrusting into the pen- 
alty area, banging home the goals.” 

"Claudio Caniggia is another 
girl's-blouse.” 

"So tell me about yourself, Mich- 
ael How are you doing? I recall that 
among a series of half-baked fore- 
casts you made at the start of the 
year, you predicted that in the final 
of the World Cup Norway would 
beat Brazil 3-L” 

“Did I?” 

“It was New Year's Day. I remem- 


ber sitting in the green room on 
New Year's Day and perusing, for 
want of something better, a series 
of forecasts you made for 1994, erf 
which Norway to beat Brazil 3-1 in 
the final of the World Cup was pos- 
sibly the most eccentric. 

"You sounded highly disturbed. 
You predicted, for example, that the 
FT-SE 100 would topout at 3,660 
before Easter and tiffin foil like a 
stone in September or October, and 
that the gold price would finish 1994 
above $500 an ounce." 

“And so it could, if the Chfnpse 
masses get their dander up and buy 
gold heavily. They love their gold, 
those Chinese masses. An extra 
ounce per Chinese household per 
calendar year would send the gold 
price soaring." 

"You also said that John Major 
would resign." 

“And so he will. Miss Lee. Just as 
Norway will beat Brazil in the 
World Cup final. You’d like Norway. 
There’s Sigurd Rushfeldt and Jan 
Aage Fjortoft and John Ivar Jakob- 
sen...” 

I looked up. Miss Lee had van- 
ished. I was talking to myself. I 
returned to the dining room, to my 
glistening screen, which brings me 
weird stories from places for away. 



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