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British ministers are preparing to exploit the 
St Patrick's Day call from President Bill Clinton 
for Sinn F6in and the IRA to accept the Downing 
Street declaration. Northern Ireland secretary 
Sir Patrick Mayhew is today expected to drive 
home the political advantage created by the US 
administration with, an attack on Sinn F6tn presi- 
dent Gerry Adams, cl aiming he has so far delivered 
only death and threats of death. 

Page 6; The tight goes on. Page 9 

UK variable rate bond: The Bank of En gland 
is to launch its first UK government bond with 
a variable rate coupon in nearly 20 years. The 
coupon is expected to vary at set periods in line 
with prevailing Interest rates and is aimed at 
banks and building societies. Page 24 

Judge says police armed Zulus: President 
F.W. de Klerk said he had accepted “prlma fade” 
evidence from a judicial inquiry that senior South 
African police, including deputy commissioner 
of police Basie Smit, were involved in supplying 
weapons to the Inkatha Freedom party. Page 4 

Mirror cleared to buy Independent: The 

consortium backed by Mirror Group Newspapers 
was given government approval to take over 
Newspaper Publishing, owner of The Independent 
and the Independent on Sunday. Page 7 

Senate to hold Whitewater hearings: The 

US Senate has voted unanimously to hold hearings 
on the Whitewater affair , but has left to future 
negotiation when they are to be held and what 
ground they will cover. Page 3 

Metals group to act against former chief 

The supervisory board 
of Metallgesellschaft 
said it would take 
legal steps to seek 
damages against Heinz 
Schixnmelbusch, the 
sacked chief executive 
of the Frankfurt-based 
metals, mining and 
• industrial group. Hie 
V board said the move 
followed an independent 
*- report into the near 
collapse of the group - Germany’s 14th largest 
industrial company. Mr Schimmelbusch has denied 
responsibility for the debacle. Page 11 

Closer airline links: Germany and the US 
signed an agreement on air transport, paving 
the way for closer cooperation between German 
national carrier Lufthansa and United Airlines. 

Page 24: US avoids showdown. Page 3; Lex, Page 24 

SPD sets out tax plans: Germany's opposition 
Social Democrat party proposed tax reforms to 
shift the burden of spending on unification from 
the low-paid to the wealthy as the main plank 
of its election campaign. Page 24; A policy with 
whiskers. Page 8 

Russia to join Nato peace partnership: 

Russian prime minister Victor Chernomyrdin 
confirmed Russia would join the US-inspired 
Partnership for Peace programme designed to 
draw former Communist states into a closer rela- 
tionship with Nato. Page 2 

Mol Ins, tobacco and packaging group, increased 
pre-tax profits for 1993 by 11 per cent to £20.4m 
on strong demand for cigarette making machinery 
from China and other developing markets. Page 10 

UK gives £3m for re pa tri a tio n: Britain 
is adding £3m to the £lfim aid it has given a United 
Nations programme aimed at repatriating about 
L5m Mozambicans who fled IS years of civil war 
to neighbouring countries. 

Bayer, chemicals and drugs group, brightened 
the German results season with a confident forecast 
of profits up to 20 per cent higher in the current 
year. Page 11 

Concern over N Korean missiles: The US 

expressed concern that North Korea was developing 
two new types of long-range ballistic missile with 
the potential to threaten most of Asia. Page 4 

Mr crash: An aircraft tarrying Iranian women 
and children home for New Year celebrations 
crashed in the disputed Caucasus enclave of 
Nagorno-Karabakh, killing ail 32 people on board. 

Ninth murd er charge: Police in Gloucester 
charged builder Frederick West with the murder 
of a ninth woman. 15-year-old Carol Ann Cooper, 
last seen alive at a bus stop nearly 20 years ago. 


European bond prices fall sharply after Clinton and Greenspan discuss economy 

Fed meeting raises rate concerns 


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E index 80S 005) 

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London: 



For customer service and 
other general enquiries call: 

Frankfurt 

(69) 15685150 


By Michael Prowse In 
Washington and Our Markets 


Financial markets were 
speculating yesterday that the 
US Federal Reserve planned an 
early rise in short-term interest 
rates, after President Bill Clinton 
summoned Mr Alan Greenspan, 
Fed chairman, to the White 
House for talks on economic pol- 
icy. 

The White House said the 
meeting was “routine” and 
denied that interest rate policy 
had been discussed. However, it 
was arranged at short notice - 
Mr Greenspan had to cancel a 
planned speech at a D allas eco- 
nomic conference - and came 
just ahead of Tuesday’s meeting 
of the Fed’s open market commit- 
tee, which sets interest rates. 


Building 
societies 
face sharp 
squeeze 
on funds 

By Alison Smith 

Britain’s personal savers last 
month continued to desert build- 
ing societies In search of better 
returns on their money. The net 
outflow of 2404m was the high- 
est for 7% years. 

Strong competition for retail 
savings - from unit trusts and 
National Savings products in 
particular - led to the fourth 
consecutive monthly outflow, 
according to figures released by 
the Building Societies Associa- 
tion yesterday. 

Mr John Wrigiesworth, build- 
ing societies analyst at stockbro- 
ker UBS, said the pressures on 
societies “rule out any prospect 
of a mortgage rate redaction in 
die foreseeable future”. 

Evidence of the continuing 
scale of withdrawals coinrides 
with signs that societies are 
recovering in terms of mortgage 
lending. Net new mortgage com- 
mitments rose from £1.83 bn in 
January to £2S3bn in February, 
the highest level since July 1993. 

Mr Adrian Coles, director-gen- 
eral of the Building Societies 
Association, said last month’s 
savings figures reflected not just 
fierce competition for fluids but 
“distortions caused by the pay- 
ment of the second instalment on 
the BT3 share issue”. 

Pressure on societies' retail 
binding has intensified with the 
launch of the pensioners' guar- 
anteed income bond. National 
Savings said last week the bond 
had attracted £480m in Febru- 
ary. It pays an annual fixed rate 
of 7 per cent gross for five years, 
and has been bought by nearly 
90,000 people. 

Mr Andrew Longhnrst, chief 
executive of Cheltenham & 
Gloucester, the UK's sixth larg- 
est society, said societies did not 
need to attract new savings in 
order to meet mortgage demand. 
Net advances or principal in 1993 
totalled only £9.43bn, compared 
with £M.09bn In 1 390. 

Societies are hoping that 
before the end of the year the 
limits on wholesale fluids they 
can raise will be relaxed, but If 
mortgage demand jacks up more 
sharply and they have difficulty 
attracting retail funds, they have 
the option of increasing the rates 
they offer on savings and the 
charge on mortgages. 

Mr Longhnrst said the intense 
competition among lenders for 
new mortgages meant 
across-the-board rate reductions 
were unlikely. 

The previous largest monthly 
outflow was in September 1986 
wh en sa vers withdrew money for 
the TSB Group flirtation.. 

Upturn is a mired blessing 
for societies. Page 6 


Mr Gene Sperling, a senior 
White House aide, said Mr Clin- 
ton had sought Mr Greenspan’s 
"analysis of the economic funda- 
mentals”. He said no messages 
on interest rates were given or 
received. 

European bond prices, how- 
ever, fell sharply after early 
losses In the US market before 
foil details of the meeting 
emerged. 

US markets reacted calmly, 
appearing to accept that Mr Clin- 
ton had not used the meeting to 
browbeat Mr Greenspan over 
rates. By early afternoon, the 
long bond was down about half a 
point to yield 687 per cent, while 
share prices were flat 

Many Wall Street analysts 
expect the Fed to raise rates 
either immediately after next 
week’s meeting or in the next few 


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weeks. The Fed may raise the 
federal fltnda rate - the cost of 
overnight money to banks - by 
quarter of a point to 3.5 per cent. 

The Fed raised the fed funds 
rate by a Quarter point to 3J25 per 
cent on February 4 - the first 
increase in short rates for five 


years. US long bond yie lds have 
risen steeply In recent weeks to 
nearly 7 per cent on the assump- 
tion that the February 4 move 
was the first in a series of tight- 
enings. US markets may thus 
take another modest increase in 
rates in their stride. 


But further tightening of. US 
monetary policy Is certain to be 
condemned on Capitol BOD. Mr 
Henry Gonzalez, chairman of the 
House of Representatives bank- 
ing committee, said the Fed’s 
monetary policy was "a true 
abomination”. The Fed was fight- 
ing a non-existent inflationary 
threat and might throw imHians 
of Americans out of work. 

The White House supported the 
Fed's move in February tout sees 
little reason for further action 
because it regards the risk of 
hi gher inflation as minimal. Mr 
Greenspan, however, is thought 
to believe further rate increases 
are gppdfld. 

The UK government bond mar- 
ket fen sharply, but picked up on 
the announcement of a floating- 
rate gilt auction. On. LifEe, the 
futures exchange, the long gilt 


future opened at 109%, fell to a 
low of 108%, before recovering to 
109%. 

The German market was nit by 
disappointment that the Bundes- 
bank a gato felled to ease interest 
rates on Thursday. 

On Liffe, the German Bund 
future fell more than % point to 
end at 96.62. Italian bonds fared 
even worse, losing 1% points. 

Izl equities, London’s FT-SE 100 
rallied in the late afternoon to 
close 37.6 down at 3,21 8 . L Falls 
on continental European bourses 
averaged just over 1 per cent. 
Hong Kong's Hang Seng Index 
had earlier dropped 4.1 per cent. 

Editorial Comment, Page 8; 
Bonds and currencies. Page 13; 
London shares. Page 15; World 
stocks. Page 23; Floating rate 
gflts. Page 24 


Bosnian Croats and Moslems sign deal 



M Mi 





Race is on to beat 
deadline for VAT 
on domestic fuel 


By Michael Smith 
and Robert Corzine 

British householders are paying 
electricity and gas bills in 
advance - in one case, for 21 
years - as they race to beat the 
deadline to avoid paying value 
added tax on domestic fuel. 

By last night, the UK's 15 sup- 
pliers of electricity to households 
had received more than 240,000 
payments and British Gas had 
taken in 66,000. 

Numbers paying in advance of 
April 1, when VAT is imposed, 
have more than doubled in the 
last week and by last night total 
receipts had reached D50m. That 
figure is expected to be dwarfed 
by next Friday - the day by 
which most companies say they 
need to receive cheques In order 
to clear them in time. 

The VAT rate cm domestic fuel 
will be 8 per cent for the first 
year, before rising to 17.5 per 
cent in April 1895. 

Mr Gordon Brown, shadow 
chancellor of the exchequer, will 
next week ask Offer and Ofgas. 
the electricity and gas industry 
watchdogs, what they intend to 
do about the “windfall cash” 
being built up by domestic fuel 
suppUere. 

The companies, many of which 
are cash-rich after a better than 
expected performance since pri- 
vatisation, will earn considerable 
amounts of interest on the pre- 
payments. 

They say they have not encour- 
aged pre-payment and that they 
have had to spend money to 


CONTENTS 


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Major pledges £12m for Sarajevo 

Clinton calls on 
Serbia to join 


peace process 


$ 


Hrtt steps to peace: OK Canton with 
Bosnian president Alga tretbegqjric 
(left} and Croatian president Franjo 
Tudjman (right) after the signing in 
W ashin gto n of an agreement binding 
Bosnian Croats and Moslems in a 
loose federation. Mr Cfinton said the 
deal offered "one of the first dear 
signals that. parties to this conflict 
are wfitog to end the violence", ap 


By Jurek Martin hi Washington, 
James BBtr in London and Latin 
8 Bmt hi Belgrade 

President Bill Clinton of the US 
urged Serbia yesterday to join 
the Balkan peace process as Bos- 
nia’s Croat and Moslem leaders 
signed an agreement creating a 
federation in that part of the 
republic not held by its Sofas. 

He specifically urged the Bos- 
nian Serbs to tfoin in this effort 
for a wider peace. We invite and 
urge them to do so." 

Mr John Major, the British 
prime minister who visited Sara- 
jevo yesterday, also appealed to 
the Sofas to join the peace pro- 
cess. He said: “I think we just 
have to continually put pressure 
(Hi the Serbs to realise that it’s 
going to be necessary to reach a 
political settlement, that there 
are no gains to be made by con- 
tinuing fighting.” 

While in Sarajevo, Mr Major 
announced that Britain would 
provide £12m to help rebuild the 
infrastructure of the city, of 


which 25m would be allotted to a 
joint Anglo-American civil mis- 
sion to provide health care, 
rebuild the power generation sys- 
tem and rebuild the city's rail- 
way Una. The rest would go to 
the UN organisations providing 
relief to the area. 

Mr Clinton said yesterday's 
measures, were "only first . .steps 
but they are steps in the right 
direction . . . they offer one of 
the first clear signals that parties 
to this conflict are willing to end 
tiie violence and begin a process 
of reconstruction." 

The US is pinning considerable 
hopes that next week Mr Vitaly 
Churkin, Russia's special envoy 
to former Yugoslavia, will be able 
to forge an agreement between 
Croatia and Serbia on the status 
of the Serb-held Krajina region in 
south-eastern Croatia.'"- • 

In Washington, both President 

Continued on Page 24 
Major visits Sarajevo: 

' picture, Page 7 
Peace hopes rise, Page 9 


cover costs of customers paying 
in advance. 

Eastern Electricity, based in 
Ipswich, says will need to take In 
between £25m and £30m to gener- 
ate enough interest to cover 
extra staffing, telephone and 
computer costs. It has already 
received dose to that amount 

Most power and gas consum- 
ers, who have elected to pay in 
advance, have forwarded the 
equivalent of between one and 
two years’ bills. 

But Manweb, based in Chester, 
says one customer has paid the 
equivalent of 21 years’ bills and 
Seeboard, in Hove, says one has 
paid a sum equal to 18 years' 
usage. Bast Midlands says it has 
received a cheque for £7,500, 
although it does not specify how 
long this may cover. 

The average annual household 
electricity power bill is about 
£300. The gas bill of an average 
three-bedroomed house with gas 
central heating is about £380. 

British Gas has seal a north- 
south divide. In the North 
Thames region, which takes In 
central London. 14JW0 customers 
have made some form of pre-pay- 
ment This compares to just over 
3.500 customers pre-paying in 
British Gas's north west region, 
its largest, which encompasses 
Manchester and Liverpool. 

Among individual electricity 
companies with high receipts are 
Bristol-based Sweb with 40,000 
paying £I8m and Manweb, where 
38,000 have paid eiaSzq. 

Beat VAT on fuel, Wknd Page V 


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© THE FINANCIAL TIMES LIMITED 1994 No 32,321 Week No 1 1 


LONDON - PARIS - FRANKFURT - NEW YORK ■ TOKYO 


LM> j 


i-'i v-.Vr . . ‘‘‘S.p t tic .AMs K 













NEWS: INTERNATIONAL 


Russians take plunge and say 
Yes to Nato peace partnership 


By John Lloyd In Moscow 


Mr Victor Chernomyrdin, the 
Hossian prime minister, yester- 
day confirmed that Russia 
would join the US-inspired 
“Partnership for Peace" pro- 
gramme designed to draw for- 
mer Communist states into a 
closer relationship with Nato. 

Russia would no longer 
insist on special conditions for 
membership, he said. 

Under the programme, states 
are invited to sign an identical 
framework agreement, but 
they can then write their own 
menu for co-operation pro- 
grammes with Nato. Russia 
said it would draw up its menu 
this month. 

Mr William Perry. US 
defence secretary in Moscow 
for talks with his opposite 
number General Pavel 
Grachev, said: “This would be 
a major event for Nato.. .Russia 
is a great power, a nuclear 
power. They will play a special 
role in the Partnership." 

The Russian decision - if ful- 
filled - represents an impor- 
tant move by the Chernomyr- 
din government towards the 
west, in the face of strong criti- 
cism of the Partnership by sev- 


eral influential figures. 

Mr Andranik Migranyan. an 
adviser to President Yeltsin, 
this week said the Partnership 
was designed to “isolate” Rus- 
sia. 

The defence and foreign min- 
istries believe Russia would be 
better in than out, partly 
because its former allies in 
central and eastern Europe are 
enthusiastically joining and 
Russia still wishes to exert 
some regional influence. Offi- 
cials also believe that Russia 
will gain access to a wider 
arms markets within the Nato 
sphere of influence. 

But there remain strong 
areas of doubt among even 
those politicians who favour 
joining the Partnership. Mr 
Andrei Kokoshin, the deputy 
defence minister and the top 
civilian in the defence estab- 
lishment, wrote in the New 
York Times yesterday that 
Russia would never be a 
"younger brother". 

Mr Perry insisted that the 
rules had fundamentally 
changed, and that agreements 
between Russia and the west 
were not a “zero sum game" in 
which one side lost where the 
other won. He said he favoured 


increased contact with other 
states including Ukraine, but 
said “this would not be as a 
buffer to Russia”. 

A vigorous lobby in the US, 
led by Dr Henry Kissinger and 
Mr Zbigniew Braezlnski, has 
begun criticising the Clinton 
administration’s policy 
towards Russia as over-accom- 
modating - especially in with- 
holding Nato membership from 
the central European states 
which want it. 

The US administration has 
been forced to defend Its posi- 
tion on Russia in the face of 
these attack s, stressing that 
the Partnership is a flexible 
one. which could open its 
doors to full membership for 
central European countries if 
Russia was felt to be a threat 
to their security. In a speech 
made before his trip, Mr Perry 
dwelt on the possible threat of 
a nationalist Russia - some- 
thing US administration offi- 
cials have not done until the 
last month or two. 

Mr Perry said yesterday that 
the Partnership “gave no guar- 
antee to anyone that they 
would become members of 
Nato” and that, even if states 
were to become members, it 


would not be “in the near 
term”. However, the policy 
remains one of seeking to 
engage Russia in a range of 
co-operative activities in the 
defence field - with joint man- 
oeuvres between Russian and 
US infantry units in Russia 
scheduled for tins summer. 

Mr Perry said westem-Rus- 
sian co-operation on Bosnia 
had produced significant suc- 
cesses, both In stopping the 
shelling of Sarajevo and in 
opening Tuzla airport How- 
ever, he added: “Now we are 
getting into a more complex 
process - we have a frame- 
work agreement between the 
Croats and the Moslems, but 
we must get Serb participation 
as well. " He said that Mr 
Vitaly Churkin, the Russian 
special envoy to Bosnia and Mr 
Charles Redman, his US coun- 
terpart, were working on get- 
ting a “co-operative agree- 
ment" between all parties. 

A range of agreements were 
signed, including $30m of US 
aid for the safe destruction of 
chemical weapons; J20m seed 
capital for US-Russlan joint 
ventures in the field of military 
conversion; and $20m to build 
homes for demobilised officers. 



Hand of peace: Mr Chernomyrdin greets US defence secretary 
William Perry at the Moscow White House yesterday 


Reluctant challenger runs Berlusconi close 


The Forza Italia leader may come to an unexpected halt in central Rome, writes Robert Graham 


One constituency above ail 
others has come under the 
spotlight in the Italian election 
mmp ai gn 

This Is a seat in the historic 
centre of Rome where media 
magnate Silvio Berlusconi is 
staking his prestige as an 
aspiring politician. It is a three 
cornered fight between the left, 
right and centre and could pro- 
duce a surprise upset 

The Milanese owner of the 
Fininvest media empire is not 
on home territory; and he 
would have been far safer in 
one of the middle class suburbs 
where his Forza Italia move* 
ment has a sympathetic audi- 
ence. In central Rome his elec- 
torate mainly consists of small 
traders and shopkeepers pro- 
foundly mistrustful of political 
promises. The voters also 


include the wealthier members 
of the professions and the 
Roman aristocracy: the former 
mistrust Mr Berlusconi, the 
latter feel more at home with 
the neo-fascist MSI. 

Mr Berlusconi's two main 
opponents are Prof Luigi Spav- 
enta, the budget minister, who 
Is backed by the Progressive 
Alliance of eight left parties, 
and Mr Alberto Michelini, a 
former Christian Democrat 
deputy, standing for the cen- 
trist alliance, Italian Pact 

“I didn't want to run for par- 
liament but as a Roman 1 felt I 
had to meet this challenge 
from Berlusconi standing in 
the heart of Rome," says Prof 
Spaventa. For a reluctant can- 
didate with little to lose, he 
has proved something of star, 
deploying a mordant wit pep- 


pered with anglicisms. Even 
Forza Italia supporters reckon 
he is running Mr Berlusconi 
close. 

Both candidates could not be 
more different. Prof Spaventa, 
a fellow of All Saul's, Oxford, 
is part of Italy's academic elite 
and an unashamed intellectuaL 
He is urbane and self-deprecat- 
ing. Long sympathetic to the 
old Italian Communist Party, 
he nevertheless kept his dis- 
tance and entered the Ciampi 
government as a technocrat 
minister. Now he Is standing 
as a candidate for the small 
left-wing Democratic Alliance, 
one of the eight groupings in 
the Progressive Alliance led by 
the former communist Party of 
the Democratic Left (PDS). 

In contrast, Mr Berlusconi is 
the epitome of a confident 


self-made man. He has no intel- 
lectual pretensions but is 
proud of having brought popu- 
lar entertainment to the public 
through his television empire. 
Despite his success, he retains 
the air of a northern provincial 
and sticks to long-standing 
friends. His ideology is avow- 
edly anti-communist - a liberal 
democrat embracing the free 
market 

Mr Michelini finds himself 
the man in the middle. He was 
a Christian Democrat deputy 
in the last legislature but left 
the party last year with his 
close friend, Mr Mario Segni, 
the referendum leader. To 
stand a chance, he needs the 
catholic vote which has been 
split by the break-up of the 
Christian Democrats. Though a 
well-known journalist. Mr 


Micheiini is closely linked to 
the conservative catholic 
movement. Opus Dei, and this 
may well limit his appeal to 
the broad catholic vote. 

With a flagging campaign, he 
was forced to deny this week 
rumours of a deal agreeing to 
stand down in favour of Mr 
Berlusconi But he was heard 
to complain: “ Berlusconi's got 
his TV and Spaventa’s got the 
backing of the communist cad- 
res and their mili tants ." 

Mr Berlusconi is hampered 
by having to campaign nation- 
ally - he has only devoted 
three days to Rome so far. 
Through his carefully orches- 
trated television appearances 
he has made a strong impact; 
but in Rome he has been made 
to look vulnerable by declining 
a TV debate with Prof Spav- 


enta. Ask any Rome shop- 
keeper who would win such a 
debate and the reply is immedi- 
ate; “11 professor*”. 

The seat is being fought 
under the new first- past-the- 
post system that will elect 75 
per cent of the deputies. The 
remaining 25 per cent are 
elected by proportional repre- 
sentation and majority vote 
candidates can also stand in up 
to three other places. 

This ts a typically Italian 
way of offering consolation 
prizes, and Mr Berlusconi is 
standing for a sure propor- 
tional seat in the Lazio region. 
Nevertheless if he falls in 
Rome, it would be a damaging 
blow. On the other hand if Prof 
Spaventa wins, he is talked of 
as a potential prime minister. 

Editorial Comment, Page 8 








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Ukraine ‘plans 
to restart third 


Chernobyl unit’ 


By J9I Barshay in Kiev 


Ukrainian President Leonid 
Kravchuk has signed an order 
to start up Chernobyl reactor 
number 2, widely regarded as 
unsafe and closed since a 
devastating fire in 1991, 
according to environmental 
activists. 

Ukraine is under enormous 
pressure to find new energy 
sources to reduce reliance on 
its main energy supplier, 
Russia. Relations with its 
neighbour have been difficult 
since the break-up of the 
Soviet Union. 

The republic has a $3.2bn oil 
and gas debt to Russia. It must 
settle $900m of this debt by 
April 10 or Russian gas 
supplies will be cut off. A 
partial cut-off this month has 
led to factories being ordered 
to halve energy consumption. 
There are Gears there will not 
be enough energy for spring 
planting this year. 

According: to Greenpeace, in 
Kiev, reactor number 2 will be 
restarted in 1995 under a 
decree signed on February 23. 
Two other reactors at 
Chernobyl remain in operation, 
although reactor number 4, 
where the Infamous Chernobyl 
explosion took place in 1986, 
remains shut down, encased in 


a concrete shelL 

Last October, the Ukrainian 
parliament passed a 
controversial resolution to 
continue energy production at 
the power plant, reversing its 
1991 decision to shut it down 
.by the end of last year. 
Administration officials 
refused to confirm or deny the 
existence of the February 23 
order, but did say 
that Its existence was 
“possible". 

Western experts and 
Ukrainian scientists have 
criticised the Soviet design of 
the Chemobyl-style RBMK 
reactors and have urged that 
they be scrapped immediately. 
The notorious graphite-core 
RBMKs are liable to speed up 
nuclear reaction and get hotter 
as water Intended for cooling 
turns to steam. 

In addition, Ukraine’s 
nuclear industry, which 
supplies 40 per cent of the 
country’s electricity, has 
suffered recurring technical 
problems and safety violations. 
Automatic safety systems are 
periodically snitched off to 
boost power production. Just 
yesterday, a fire broke out at 
Ukraine's Khmeltnisky nuclear 
power station and last week, 
there was a fire at the 
Zaporizha station. 


WORLD NEWS DIGEST 


Iraq sanctions 
to stay in place 


The UN Security Council agreed yesterday that s anc ti on s 
against Iraq must stay despite Baghdad's Improved coopera- 
tion on eliminating weapons of mass destruction. But uw 
accord obscured sharp divisions within the councti which 
spent three days in Intense discussions on what has lutterto 
been a brief and routine 60-day review of the embargo. France, 
which holds the council presidency this month, sought agree- 
ment on a formal statement praising Iraq for its ; greater 
co-operation. Russia and China supported this but both the US 
and Britain objected saying Iraq was still far short of fall 
compliance with the cease-fire terms. Diplomats said the 
French initiative was prompted by fears that even if the Iraqis 
met these terms, Washington would block lifting sanctums by 
raising new issues, such as human rights violations. Mr R olf 
Ekeus, bead of the UN commission charged with destroying 
Iraq’s nuclear, chemical and heavy weapons capability, must 
report full compliance before sanctions can be lifted. He 
expects to do so before the end of the year. Michael Littlejohns, 
New York. 


Balladur concession rejected 


French nninn leaders yesterday dismissed a further bid by the 
Balladur government to blunt opposition to its youth wage 
legislation, as students demonstrated against the law in the 
university cities of Toulouse, Nancy, Lyons, Nantes and 
Rennes. Mr Michel Giraud, the labour minister, sent union 
leaders a draft of a new decree on the wage and training 
measures, but the unions said it did little more than dress up 
in legal lang uage inadequate concessions that Prime Minister 
Edouard Balladur had made earlier. Mr Balladur promised 
that young people holding diplomas would be paid no less 
than the country's FFr5,866 (£672) a month minimum wage, 
and no less than 80 per cent oE sectoral wage agreements. But 
the unions are still angry that unqualified workers could be 
paid only 80 per cent of the minimum wage, despite Mr 
Glraud's claim that such workers would only be working 80 
per cent of the time with the remaining hours devoted to their 
training. The youth wage row comes at an awkward time for 
Mr Balladur who faces the first test of his popularity in 
Sunday’s first round of voting to elect more than 2,000 local 
councillors around the country. David Buchan. Paris 


Boycott threat fells timber deal 


Protests against “clear-cut" logging in British Columbia have 
led two big UK paper companies to cancel pulp contracts with 
MacMillan Bloedel, the Canadian forest products group. Kim- 
berly-Clark’s UK subsidiary has pulled out of a $2ro deal with 
MacMillan, while Scott Paper earlier cancelled a $5m contract. 
Both companies have faced threats by Greenpeace to organise 
a consumer boycott in protest against MacMillan's logging 
practices in the picturesque Clayoquot Sound area of Vancou- 
ver Island. Clayoquot Sound contains one of the biggest 
remaining old-growth forests in North America. The British 
Columbia government has tried to steer a compromise 
between environmentalists calling for a total ban on logging 
in the area, and the forestry companies which maintain that 
the trees are essential to the survival of nearby mills. The 
unsightly bare patches left by clear-cutting have given the 
environmental movement a powerful publicity weapon. Mac- 
Millan maintains however, that Greenpeace has misrepre- 
sented its forestry practices. The company has launched an 
aggressive advertising campaign in Canada and Europe to 
defend itself against the environmentalists' charges. Bernard 
Simon, Taranto 


Banker in sell-off row quits 


Mr Marian Rajczyk, head of Poland’s Bank Siaski, has 
resigned in the wake of the bank's controversial privatisation 
earlier this year. His departure means the bank has a better 
chance of recovering its valuable broking licence. The Securi- 
ties Commission revoked the licence last month after the bank 
had been found to have mismanaged the public offer. It failed 
to speedily register Investors’ share certificates except those 
held by management and employees. The bank staff were thus 
able to take advantage of a price 1&5 higher than the 500,000 
zlotys public offer price when the shares were first listed in 
January while the 800,000 people who bought shares were 
unable to trade them. The commission has indicated to the 
finance ministry which holds 30 per cent of the equity and the 
Dutch INC bank which bought a 25.9 per cent stake that a 
change* at the top of the bank and thorough reform of the 
broking operation could see the decision reversed. The Bank 
Siaski has already sacked a deputy chairman and the head of 
the broking operation and the Bank's supervisory board meets 
next week to consider Mr Rajczyk 's resignation. Christopher 
Bobmski, Warsaw 


Insurance chiefs accused 


Four senior executives linked to Ina-Assltalia, the Italian state 
insurance group to be privatised in June, are under investiga- 
tion for alleged corruption and falsifying of accounts. The 
inquiry Involves financial operations from 1990 to 1992, espe- 
cially those of the Rome branch. The two most prominent 
executives are Mr Pierluigi Cassietti. chairman of AssHalia, 
and Mr Mario Fomari, chairman of Consap, the institute 
responsible for state insurance business. Mr Fomari was a 
former managing director of Ina and was considered the main 
Unk between the Andreotti faction of the Christian Democrat 
Party and the insurance business. He has denied any impropri- 
ety. Robert Graham, Rome. 


Danish gas will last 45 years 


Denmark, western Europe's third -biggest oil and gas producer, 
said yesterday it had known reserves to sustain current ofi 
production levels for 20 years and gas production for 45 years. 
The Danish Energy Board said It expected Denmark to achieve 
balance in its energy trade in 1997, meaning that exports of od 
and gas would be worth as much as imparts of coaL “The 
continued high oQ and gas production will mean that Den- 
mark's net energy expenditure will fall from DKriLSbn in 1993 
to a balance or a small surplus in 1997," the board raid The 
overall self-sufficiency level for both oil and gas was expected 
to reach more than 140 per cent in 1997, it said, up frtnn 120 
per cent in 1993. The surplus, mostly of gas. has been exp orted 
to Sweden and Germany. Reuter, Copenhagen. 


Setback for Bildt over 
EU referendum date 


By Hugh Camegy 
in Stockholm 


Sweden is to hold its 
referendum on joining the 
European Union on November 
13 - assuming the EU resolves 
its row over voting rights in 
the enlarged Union. 

Although Finland and Nor- 
way have yet to set dates for 
their referendums, the Swedish 
decision almost certainly 
ensures that the order of vot- 
ing in the three Nordic neigh- 
bours will be Finland in Sep- 
tember, followed by Sweden, 
and then Norway, In late 
November or December. Aus- 
tria is to vote In June. 

With support for EU mem- 
bership among the Nordic 


countries strongest In Finland 
and weakest in Norway, the 
east to west sequence has long 
been regarded as the best way 
to win a “yes'* vote in the three 
nations. Polls in Sweden and 
Norway show the yes vote ris- 
ing if their neighbours decide 
to join. 

But yesterday's decision was 
a blow to Mr Carl Bildt, the 
conservative prime minister, 
who wanted to hold the refer- 
endum In June, or at the latest 
on general election day in Sep- 
tember. 

He was forced to postpone 
the date by the opposition 
Social Democrats, the coun- 
try’s biggest political party, 
which it is widely acknowl- 
edged holds the key to winning 


a “yes” vote. 

The dilemma for Mr Bildt is 
that If he wins the general elec- 
tion, the Social Democrats are 
unlikely to campaign enthusi- 
astically for joining the EU, 
which many of its members 
oppose. 

In Norway yesterday, opin- 
ion polls taken after agreement 
on accession terms this week 
showed conflicting results. A 
Gallup poll showed opposition 
rising to 49 per cent, with 
support slipping to 28 per 
cent. 

But a poll in the newspaper 
Dagbladet showed support 
moving up sharply to 41 per 
cent, with opposition falling 
three percentage points to 49 
per cent. 


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FINANCIAL. TIMES WEEKEND MARCH 19/MARCH 20 1994 


US Senate to hold 
Whitewater hearings 


NEWS: INTERNATIONAL 


By Jure* Martin, US 
Editor, in Washington 

The US Senate has voted 
unanimously to hold hearings 
on the Whitewater affair , but 
has left to future negotiation 
their date and the ground they 
will cover. 

The compromise, agreed on 
Thursday night, represents 
qualified victories for Republi- 
cans who have been demand- 
ing hearings and Democrats 
who have resisted them 

No grants Of immuni ty from 
prosecution will be given to 
those summoned for questions. 

President Bill Clinton 
seemed resigned to the fact 
that there would be a congres- 
sional forum but again said it 
would be found not to be worth 
the expense. 

The general White House 
mood is more upbeat than it 
was 10 days ago, with the pres- 
ident and Mr Hillary Clinton 
embarked on a heavy round of 
public appearances to posh the 
administration's domestic 
agenda. One senior official said 
of Whitewater “We've moved 
from crisis management to 
problem management” 

The Senate resolution also 
gives Mr Robert Fiske, the 
independent counsel, time to 
conduct his inquiry into 


whether government officials 
have conspired to obstruct fed- 
eral investigations of the failed 
Arkansas savings and loan 
entity at the centre of the first 
family's land and financial 
dealings, in their home state in 
the 1980s. 

Still unresolved by the Sen- 
ate action are possible hear- 
ings by the House banking 
committee, tentatively sched- 
uled for sometime late next 
week. 

No date has yet 
been fixed and the 
area of debate is 
also undecided 

Congressman Jim T /yyb of 
Iowa, senior Republican on the 
committee, continues to insist 
that they be held, but Mr Fiske 
is unhappy with thnm and the 
Democratic leaders in the 
House are pressing for a delay. 

Mr Fiske’s federal grand jury 
took testimony on Thursday 
from two senior White House 
members, Mr Bernard Nuss- 
baum. former legal counsel, 
and Mr Harold Ickes, the presi- 
dential counsellor mainly 
involved with healthcare. 

An additional subpoena has 


been issued to Mr George 
Stephanopoulos, a close 
adviser to the president This 
brings to 11 the number or 
White House and Treasury offi- 
cials called to testify before the 
grand jury. 

Meanwhile, the New York 
limes yesterday said Mrs Clin- 
ton had made as much as 
$100,000 (£66,9341 from trading 
in the commodities market in 
1978-1979, thus transforming 
the Clinton family finances. 

She was advised in her 
investments, according to the 
article, by Mr James Blair, a 
prominent Arkansas lawyer 
and an investor long close to 
the Clintons. Mr Blair's princi- 
pal legal client was Tyson's 
Food, the chicken producer 
and big Arkansas company. 

The White House reaction to 
the story was angry. One offi- 
cial said: ‘"Hillary and Jim 
were friends; he gave her 
advice. There was no impropri- 
ety. The only appearance Is 
being created by the New York 
Times." The Clintons had fully 
declared their profits in tax 
returns, he said. 

Mr Blair responded by 
saying it was ridiculous for the 
Clintons to have to "weed their 
friends out and say they can 
only have friends who are 
sweeping the streets.” 


Ron and Ollie’s big falling-out 

Jurek Martin tells how two American heroes found feet of clay 

O nce they were Insepa- came as a letter solicited by an said he'd had with me just Warner, a Republican not up 
rable. two conserva- old friend, former Senator Paul didn't happen." for re-election this year. If Mr 

fives locked together in Laxalt of Nevada, and was Mr North, whose own mn- North fonts Mr Millar sc ha 


O nce they were insepa- 
rable. two conserva- 
tives locked together in 
a common cause. The young 
man would walk through walls 
and around the law for his 
boss, who returned the compli- 
ment by describing his acolyte 
as “a hero." 

This relationship is now in 
tatters. 

Inserting himself with vigour 
into the Virginia contest for a 
US senate seat, the most 
widely watched political race 
of the year, former President 
Ronald Reagan has rounded on 
former Lt-Col Oliver North 
and, in effect, called him a bar. 
Mr Reagan’s intervention 


came as a letter solicited by an 
old friend, former Senator Paul 
Laxalt of Nevada, and was 
promptly released by the cam- 
paign of Mr North's rival for 
the Republican nomination, Mr 
James Miller, budget director 
in the Reagan White House. 

“I do have to admit,” Mr Rea- 
gan wrote, "that I am getting 
pretty steamed about state- 
ments coming from Oliver 
North. I never instructed him 
or anyone in my administra- 
tion to mislead Congress on 
Iran-Contra matters or any- 
thing else. And I certainly 
didn't know anything, about 
the Iran-Contra diversion 
and the private meetings he 


said he'd had with me just 
didn't happen." 

Mr North, whose own con- 
spiracies, freelance or not, con- 
sumed the US in Mr Reagan's 
second term, immediately saw 
another conspiracy. Citing 
threats to his life by Abu 
Nidal. the terrorist, as evidence 
of his loyalty. Mr North's foxed 
reply said the former president 
had been "seriously and inten- 
tionally misinformed” about 
his service on the national 
security council, and meetings 
of the two did take place. 

Mr North’s candidacy in Vir- 
ginia is ferociously controver- 
sial and has been stoutly 
opposed by Senator John 


Warner, a Republican not up 
for re-election this year. If Mr 
North beats Mr Miller, as he 
has been favoured to do, he 
will face Senator Chuck Robb, 
the incumbent Democrat. 

Mr Robb is no stranger to 
recent controversy. He is a for- 
mer Marine whose wife is the 
daughter of the late President 
Lyndon Johnson. The senator 
recently admitted, in a pastoral 
constituency letter, to conduct 
unbecoming in a married man, 
namely extra-marital affairs. 

Mr North, a self-appointed 
symbol of rectitude, loved this 
confession. His fondness for Mr 
Reagan’s intervention is much 
less apparent 





EU biotech market may 
be worth $94bn in 2000 






By Ronald van de Krol in 
Amsterdam and Daniel Green 
in London 

The European biotechnology 
market is expected to grow 15 
times, to exceed $94bn (£63bn) 
by the year 2000 and create up 
to 2m new jobs, the manage- 
ment consultancy Ernst & 
Young said in a survey of the 
industry, released at a seminar 
in Amsterdam. 

“This industry has emerged 
from academic science to 
become one of Europe’s most 
promising industries,” the 
study said, quoting a European 
Union advisory group’s esti- 
mates. 

The group, formed in 1989, 
puts the current European 
market for biotechnology- 
derived products at Ecu5bn 
(£3.8bn), rising to Ecu83bn by 
the end of the century. 

Biotechnology companies are 
expected to raise around £lbn 
through initial public offerings 
on the London Stock Exchange 
over the next couple of years. 
This would allow early inves- 
tors. such as venture capital 


companies, to o ash in their 
investments and plough thpw> 
back into the industry to fund 
new starts. 

While US companies have 
found it increasingly diffic ult 
in recent months to raise 
money in stock market flota- 
tions. the London Stock 
Exchange has already 
attracted more than £200m in 
initial public offerings from 
biotechnology companies since 
June 1993. when it altered its 
“profits track record” rules on 
profitability far young, emerg- 
ing pharmaceutical and diag- 
nostic companies. 

The changes have made Lon- 
don - the first exchange in 
Europe to adapt its rules to the 
special needs of fledgling bio- 
technology companies - an 
alternative to the US Nasdaq 
exchange used by some Euro- 
pean biotechnology companies. 

So for. 11 biotechnology com- 
panies have found their way to 
the London exchange, and bro- 
kers expect about 20 such com- 
panies to be listed within the 
next 12 months, according to 
Ernst & Young. 


The survey also found that 
the pace of alliances in the 
European biotechnology sector 
is set to pick up sharply, partly 
reflecting a new interest 
among large pharmaceutical 
companies in harnessing the 
technologies developed by 
smaller, younger companies. 

The survey findings were 
presented this week at a con- 
ference in Amsterdam organ- 
ised by Ernst & Young and 
Atlas Ventures, the venture 
capital group, to promote part- 
nerships within European bio- 
technology. 

At the event, 35 biotechnol- 
ogy companies presented them- 
selves to an audience of 150 
potential partners, including 
not only investors but also rep- 
resentatives from pharmaceuti- 
cal companies. 

Mr Steven Burrill, an adviser 
to Ernst & Young, said that 
although European biotechnol- 
ogy companies still lagged 
behind their US counterparts 
in finding finance, they enjoy 
some advantages, one being 
the quicker product approval 
by European regulators. 




TELLING IT LIKE IT WAS?: Oliver North (left) and Ronald R»p n no longer concur on their White House past 









Bcbnc Rsuur/AxNoy teht o d 


Brussels agitates against American 
regulatory charges on foreign banks 


By Gillian Tett in Brussels 

The European Union is to step 
up pressure on the US to 
reverse plans to introduce 
charges for the regulatory 
supervision of non-US banks 
operating in the US. 

A meeting of European 
finance ministers on Monday 
will authorise a strongly 
worded protest to the US Fed- 
eral Reserve and the Senate 
banking committee, insisting 
that the new regulations con- 
travene the Gatt agreement, 
European Commission officials 
said yesterday. 

The issue is likely to make 
further difficulty in trade rela- 
tions as the EU and US wran- 
gle over their final offers for 


market access before a Gatt 
meeting next month. 

Commission officials in Brus- 
sels said the proposed audit 
charges were “grossly discrimi- 
natory" because they would 
only affect non-US banks. “The 
fact that this is going to the 
economics ministers’ council 
shows how seriously we take 
this." a commission official 
said. 

The Federal Reserve has so 
far refrained from indicating 
how high the charges would 
be. However, the development 
has prompted anger among 
European banks and govern- 
ments. which say that the 
charges would impose an 
unfair burden on European 
and other banks operating in 


the US and contravene the 
principle of national treatment 
(hie European diplomat yes- 
terday said: “In money terms. 
this might not necessarily be 
very much but the principle is 
extremely important This is 
blatant discrimination against 
the non-US banks ” 

However, one of the three US 
federal regulatory authorities, 
the Comptroller of the Cur- 
rency, does levy charges on 
domestic banks. 

The proposed new charges 
emerged as part of the foreign 
banking supervision act which 
was passed by the US Congress 
during the Bush administra- 
tion but is not yet imple- 
mented. The relevant provision 
states that foreign banks shall 


meet the “cost of any examina- 
tion” required under the regu- 
latory framework. 

The requirement, aimed at 
strengthening supervision of 
foreign banks in the US, was 
prompted by the collapse of 
Bank of Credit and Commerce 
International. 

This has provoked much 
unease within the Federal 
Reserve, already in a tussle 
with the Treasury and the Sen- 
ate banking committee over 
proposals to reform the US 
banking regulatory framework. 

With the Senate pressing for 
the relevant provision to be 
implemented, the Federal 
Reserve has called for public 
consulation before the new 
charges are introduced. 


US airlines agree not to use ‘price-fixing’ information system 


By Richard Tomkins 
in New York 

Six US airlines have agreed not to 
use a computerised fare information 
system to communicate proposed 
fare changes, following federal gov- 
ernment allegations that the system 
amounted to a price-fixing ring. 


The US Justice Department had 
accused the carriers - American 
Airlines, Delta Air Lines, Continen- 
tal Airlines, Northwest Airlines, 
Trans World. Airlines and Alaska 
Airlines - of using the system to 
exchange coded messages about 
planned fore changes. 

The department said the system. 


run by the indnstry-owned Airline 
Tariff Pulishing Company, 
amounted to an “electronic smoke- 
filled room” used by airlines to float 
fare changes, receive counter- 
proposals, and reach consensus on 
the amount and timing of price cuts 
or increases. 

The department's anti-trust suit 


alleged that one airline might signal 
its intention to reduce feres on one 
of its competitor’s most lucrative 
routes, only to receive a threat 
from the competitor to cut fores on 
the first airline's most profitable 
routes. Often, the result was a deci- 
sion to abandon the fare cuts or 
reach an accommodation, the 


Justice Department said. 

The airlines said the continuing 
fore war in the US domestic market 
showed the allegations were base- 
less, and travel agents said the 
absence of information on planned 
fare -changes would make it more 
difficult for people to plan travel. 

However, the airlines stopped the 


practice when the suit was filed 
more than a year ago. and agreed 
not to re-start tt. 

The settlement is substantially 
the same as one reached with the 
other two big US carriers. United 
Airlines and USAir. in December 
1992 after a similar suit. The air- 
lines will not be penalised. 


Washington’s new ticket avoids showdown 

Paul Betts plots a route through what is still challenging turbulence between American and foreign air carriers 


T he US government has 
averted a showdown 
with two of its main 
European allies on aviation 
policy by renewing British Air- 
ways’ ticket code-sharing 
rights with USAir and approv- 
ing a similar agreement 
between Lufthansa of Germany 
and United Airlines, 

But the decisions, taken after 
a week of hectic meetings in 
Washington, have failed to 
resolve the underlying ten- 
sions in aviation relations 
between the US and other 

industrialised countries. 

As a reminder of the con- 
tinuing difficulties and ten- 
sions in international aviation. 
Japan yesterday said it would 
shorten the licence period for 
US airlines on trans-Pacific 
routes to Japan from one year 
to six months, in retaliation for 
a US decision to postpone 
approval for a Japan Airlines 
service to Honolulu. 


The US is also in dispute 
with Australia over airline ser- 
vices and continues to have no 
bilateral air service agreement 
with France, following the 
French government’s earlier 
decision, to renounce its avia- 
tion pact with the US. 

South-east Asian carriers 
have also warned the US they 
are considering formation of 
their own airline bloc to pro- 
tect their aviation interests, 
unless they can secure s im i l a r 
rights to US airlines both in 
the Asia-Pacific regional mar- 
ket and the US domestic mar- 

Mr Cheong Choong Kong, 
chairman of the Orient Air- 
lines Association and manag- 
ing director of Singapore Air- 
lines, recently called for foirer 
conditions in US aviation rela- 
tions with Asia, especially 
since the Asian market was 
expected to overtake the 
domestic US market in sire by 


the end of the century. 

“It seems to be the US 
against the rest”, one US air- 
line executive said 

The heightened tensions 
between the US and other 
industrialised countries are in 
large part the result of a new 
breed of big US carriers seek- 
ing to exploit for more rigor- 
ously the historical aviation 
rights which the US had 
secured, in both the European 

and Asian markets, after the 
second world war. 

These traditional rights bad 
been held by the now defunct 
Pan American Airlines and 
TWA. These airlines have now 
been superseded by American 
Airlines. United and Delta Air- 
lines, which have hem aggres- 
sively seeking to expand their 
international reach, using 
existing US international avia- 
tion traffic rights as well as 
pressing their government to 
negotiate even greater access 


to foreign markets. 

In an incre a singly global and 
liberalised airline market, both 
European and Asian flag carri- 
ers have in return asked for 
more access to the US market 
The most significant dispute, 
however, has involved the 
bilateral aviation relations 
between the US and the UK. 
whose trans-Atlantic routes 
are the busiest in the world. 

T he ultimate outcome of 
the protracted negotia- 
tions between Washing- 
ton and London is seen as 
likely to set a pattern for other 
aviation agreements with the 
US, which now accounts for 
about 40 per cent of the west- 
ern air travel market. 

Both the US and the UK are 
committed to airline liberalis- 
ation. But, while advocating 
“open skies” and open trade 
relations, the governments of 
both countries have had to 


contend with the conflicting 
interests of their respective air- 
lines and have been reluctant 
to make any significant conces- 
sions to break the current 
deadlock. 

The issue has been further 
complicated by the two coun- 
tries' different interpretations 
of what “open skies” entails. 
Simply put, the US has offered 
the UK “open skies” across the 
Atlantic but not in its domestic 
market The UK, in turn, has 
offered the US more access into 
the UK market but not at 
Heathrow in London, the 
world's busiest international 
airport 

In return for allowing United 
Airlines and American Airlines 
to replace Pan American and 
TWA at Heathrow in 1991, the 
UK secured code-sharing rights 
for British carriers in the US. 
BA subsequently exercised 
these rights after forging a 
partnership with USAir, the 


sixth-largest US carrier, in 
which it invested $40 Om 
(£268m) via a 24 per cent stake. 

The US airlines claimed that 
this was, in the words of Amer- 
ican, “a lousy deal” for them in 
that it gave BA access to their 
market without similar bene- 
fits for US carriers at Heath- 
row. 

The UK has insisted, though, 
that any additional access for 
US earners to Heathrow would 
depend on the US granting 
more opportunities for UK air- 
lines in the US market, either 
by allowing them to acquire 
bigger stakes in US carriers or 
by possibilities to serve addi- 
tional US domestic destina- 
tions. 

Some US airlines then 
pressed Washington to 
renounce the wisting aviation 
agreement with the UK and 
withdraw BA’s code-sharing 
rights with USAir. 

At the end of the day, the US 


administration decided to 
avoid an all-out confrontation 
by renewing, on Thursday 
night, BA's existing code-shar- 
ing rights for a full year, while 
expressing extreme disappoint- 
ment with the lack of progress 
in the negotiations. 

The two countries last year 
had hoped to reach a broad 
agreement on liberalisation by 
the end of April 1994. It seems 
highly unlikely that they will 
meet this target. Both sides 
yesterday said they had no 
plans to resume talks. 

In their absence, the stand- 
off continues, with the rest of 
the air transport industry anx- 
iously watching. 

The ultimate stakes are sig- 
nificant. An agreement would 
pave the way for even broader 
liberalisation in international 
air transport. 

Failure would fiiel all the old 
protectionist instincts of the 
airline industry. 



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Jump in 
foreign 
chip sales 
to Japan 

By Louise Kehoe 
si San Francisco 

Tbe foreign share of the 
Japanese semiconductor mar- 
ket jumped to 20-7 per cent in 
the fourth quarter of 1993, tbe 
highest figure since the US 
began monitoring the share in 
1986. 

The increase has averted a 
further rise in trade friction 
between the US and Japan. 

The closely-watched data are 
the primary measure used by 
the US to determine Japan's 
compliance with a bilateral 
trade agreement, in which 
Japan “recognised the expecta- 
tions of the US semiconductor 
industry that foreign market 
share should rise to at least 20 
per cent by the end of 1992." 

Tbe fonrth-quarter figure 
represents an increase of 1.6 
per cent over the previous 
quarter, the largest jump since 
the governments began com- 
piling market share data. 

“We are pleased to see an 
increase in foreign market 
share for the fourth quarter,” 
said Mr Mickey Kantor. US 
trade representative. “How- 
ever, we remain concerned 
that US and other foreign 
semicondnctor suppliers are 
not achieving improved access 
to the Japanese market on a 
sustained basis.” 

In 1992, US officials noted, 
the fourth-quarter figure hit a 
similar high point of 20.2 per 
cent, only to decline sharply 
over the next three quarters. 

“This year, we sincerely 
hope that Japan will not 
become complacent with the 
fonrth quarter's positive 
results, only to have the mar- 
ket access figure slide back- 
wards in subsequent quar- 
ters.” said Mr Andrew 
Procassini, president of tbe 
Semicondnctor Industry Asso- 
ciation, a trade group repre- 
senting US chipmakers. 

“It is essential that effective 
steps be taken now by the Jap- 
anese government mid indus- 
try to ensure that gradual and 
steady improvements In for- 
eign market share continue 
throughout the duration of the 
arrangement,” which ends in 
1996, said Mr Kantor. 

Japanese industry officials, 
said the fourth-quarter market 
share increase and the large 
increase in foreign semicon- 
dnctor sales in Japan over the 
past year “are among the 
many indicators of the wider 
access eqjoyed by foreign sup- 
pliers”. 

Sales of foreign-made semi- 
conductors to Japan rose to 
$4.5bn (£3 bn) in 1993, Up from 
$3.3bn in 1992. according to 
the Electronic Industries Asso- 
ciation of Japan. The trade 
group noted that this repre- 
sents the seventh year that 
foreign sales have increased. 
Almost 90 per cent of foreign 
sales to Japan come from the 
US. 

The EIAJ also noted that for- 
eign market share stands at 
22.1 per cent when tbe sales of 
“captive manufacturers”, who 
make chips for their own use. 
were included. The US 
does not recognise this figure. 

Government and industry 
officials from the US and 
Japan are expected to con- 
sider, in Hawaii next week, 
whether Japan is doing 
enough to comply with the 
semicondnctor agreement. 

Emergency consultations in 
January, following the 
announcement of a decline in 
market share in the third 
quarter, ended without agree- 
ment on any additional actions 
by Japan. 

“Japanese government and 
industry should come forward, 
beginning [atj next week's 
trade consultations, with a 
plan to prevent a repeat of the 
foreign share declines that 
characterised most of 1993, 
and to assure the ‘steady prog- 
ress' required by the 1991 
US-Japan Semiconductor 
Trade Agreement," said Mr 
Procassini. 

“We believe the focus should 
be on tbe mutual reliance and 
complementary relationships 
that have grown between Jap- 
anese semiconductor users and 
foreign suppliers.” said Mr 
Hidekfico Yoshida. senior exec- 
utive vice-president of Toshiba 
and chairman of the ElAJ's 
committee to promote pur- 
chase of foreign semiconduc- 
tors. 


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Ftoutar 

A rabbi helps an Israeli border policeman prepare for prayers at 
the Wailing Wall as he takes a break from guard duty 


UN due 
to pass 
resolution 
on settlers 

By David Horovttz In 
Jerusalem 

Speculation intensified in 
Jerusalem yesterday that the 
Israeli government was consid- 
ering the evacuation of at least 
some of the settler enclaves in 
the heart of Hebron where at 
least 30 Palestinians were mas- 
sacred by a Jewish settler last 
month. The Palestine Libera- 
tion Organisation has 
demanded a crackdown on set- 
tler radicals as a pre-condition 
for resuming peace talks . 

Mr Yassir Arafat, the PLO 
chairman, is expected to meet 
Mr Shimon Peres, the Israeli 
Foreign Minister, in Cairo 
early next week in an attempt 
to dear the way for a resump- 
tion of negotiations on Pales- 
tinian autonomy in the occu- 
pied territories. The meeting 
had been initially scheduled 
for tomorrow but it was then 
realised that the host. Presi- 
dent Hosni Mubarak, would 
only return to Egypt late 
tomorrow night from a confer- 
ence in Zimbabwe. 

Mr Peres said yesterday that 
he planned to discuss with Mr 
Arafat ways to speed up the 
implementation of the "Gaza- 
and -Jericho first" autonomy 
deal The idea of a Peres-Arafat 
meeting was raised by Mr Den- 
nis Ross, the ITS peace talks 
co-ordinator, who is due to 
visit the region again next 
week to mediate a resumption 
of the autonomy negotiations. 
The plan was accepted by the 
PLO on condition that the UN 
Security Council first issued its 
much-delayed resolution con- 
demning the February 25 mas- 
sacre. 

The Security Council was 
scheduled to vote late last 
night on the resolution, which 
includes a call for new mea- 
sures to protect Palestinians in 
the occupied territories, includ- 
ing the deployment of "a tem- 
porary international or foreign 
presence." 

Mr Yitzhak Rabin. Israel's 
prime minister, has said he 
would allow an international 
observer force to deploy in the 
West Bank, and has also said 
he would be delighted if about 
1,000 Palestinian policemen. 


who resigned their Israeli-su- 
pervised posts at the start of 
the uprising more than six 
years ago, were to return to 
their duties. 

Mr Rabin and Mr Peres were 
closeted together for several 
hours in Tel Aviv yesterday. It 
is possible that the govern- 
ment could decide to bring the 
400 Jewish settlers inside a sin- 
gle compound, instead of the 
present situation where they 
are dispersed in small enclaves 
across Hebron. 

Mr Peres insisted yesterday 
that “no decision was yet 
taken" on the matter. But Mr 
Yossi Sarid, the environment 
minister, who has been playing 
an increasingly prominent role 


in the peace negotiations, said 
that, “there probably will not 
be any alternative but to evac- 
uate certain settlement sites 
inside Hebron.” 

Talk of moving or evacu- 
ating Hebron settlers has 
brought a wave of right-wing 
protest Rabbi Moshe Levinger, 
the ideological leader of the 
settlers, said that Mr Rabin's 
reference on Thursday to the 
"crazy” dispersal of Jews 
across Hebron was “an insult 
to our forefathers and to all 
settlers." Mr David Levy, for- 
eign minister in the former 
Likud government, warned 
that the government was “bow- 
ing to PLO dictates . . . capitu- 
lating to PLO demands." 


Japan seeks better links with China 

William Dawkins and Tony Walker preview Mr Hosokawa’s visit to Beijing 


M r Morihiro Hoso- 
kawa, the Japanese 
prime minister, will 
be less direct than the 
Americans and yet more frank 
than his own predecessors 
when he starts his first official 
visit to China today. 

Chinese leaders will welcome 
Mr Hosokawa's low-key 
demeanour, a contrast to 
Washington's recent bluntness 
towards China. So he can 
expect a warm reception, in 
contrast to the chill that 
greeted Mr Warren Christo- 
pher, US secretary of state, last 
week, when he was strongly 
criticised for Washington's 
decision to link renewal of Chi- 
na's trade privileges under its 
most favoured nation (MFN) 
status to an improvement in 
human rights. 

Mr Hosokawa's visit, the 
first by a Japanese prime min- 
ister for three years, marks an 
increase in SinoJapanese offi- 
cial contacts. This reflects a 
sharp rise in two-way trade 
and Japanese investment in 
China, and Beijing's eagerness 
to sound out Japan's firk non- 
liberal Democratic Party gov- 
ernment for 38 years. 

Only last month. Mr Zhu 
Rongji, China's senior vice-pre- 
mier in charge of the economy, 
met Mr Hosokawa and mem- 
bers of his government in 
Tokyo, while Mr Tsutomu 
Hata. Japan's foreign minist er, 
visited Beijing in January. 

Yet Mr Hosokawa will also 
show on his three-day visit 
that Japan’s attitude to China 
has changed, if only in tone, 
from the emollient stance 
shown by Liberal Democratic 
Party governments during its 


38 years in power. 

Japanese officials say they 
want relations with China to 
mature, in the sense that both 
sides should speak more freely. 

Mr Hosokawa shares strong 
views on human rights with 
his foreign minister, who told 
Chinese leaders in January 
that Tokyo would be more 
frank in discussing sensitive 
issues. "We expect China to 
take a more positive attitude.” 
said a Foreign Ministry official 
yesterday. 

Mr Hosokawa is also expec- 
ted to suggest to Beijing that it 
could make its allies less ner- 
vous by giving more informa- 
tion about its planned 22.4 per 
cent rise in military spending 
this year. He is likely to regis- 
ter Japan's worries over Chi- 
na's resumption of nuclear 
weapons tests last October and 
call for more help from Beijing 
in enticing North Korea away 
from nuclear weapons. 

The environment is also on 
Japan's agenda. One side effect 
of China's economic growth 
has been concern over acid 
rain from its coal-fired power 
stations reaching Japan. Mr 
Hosokawa is due to sign an 
environmental protection 
agreement, which should go 
some way to assuaging Japa- 
nese worries. 

Japan is also moving for the 
first time towards using its 
weight as Beijing's largest pro- 
vider of bilateral aid to try to 
influence policy. 

Officials have indicated 
future cheap loans could be 
used to encourage Beijing to be 
more open about defence 
spending and to come up with 
environmental projects, a 


JAPANESE INVESTMENT 
IN CHINA 
Contracts signed 

Data 


Number of 

contracts 

1989 

438 

294 

1990 

457 

341 

1991 

812 

599 

1992 

2170 

1805 

Date 

Contracts carried 
out 

1983 


356 

1990 


503 

1991 


532 

1992 


710 

Source: Japan External Tax* Otpensation 


change from Tokyo's previous 
policy of disbursing Chinese 
aid without conditions. 

Japan's five-year Y810bn 
loan programme for China, the 
only country to get long-term 
loans from Tokyo, runs out at 
the end of next year, so the 
subject could come up. Beijing 
wants another long-term pro- 
gramme. fixed in yen. but 
Tokyo is understood to lean 
towards tougher conditions: 
shorter loans at a floating 
exchange rate. 

A t the same time, nei- 
ther side wants to let 
sensitive topics spoil 
their very good relations. 

Japan, for one, needs to pro- 
tect its fast-growing economic 
interests in China. Until three 
years ago. Japanese companies 
were cautious. But the rapid 
growth of China's economy - 
13 per cent last year - has 
sucked in a sharp increase in 



Japanese investment and 
trade. Two-way trade rose by 
31 per cent to a record $37.84bn 
last year, when a 45 per cent 
rise in exports to China made 
it Japan's second-largest for- 
eign market. 

Corporate Japan has turned 
increasingly to China as a 
cheap production site to escape 
the blow to its own competi- 
tiveness inflicted by the rising 
yen. 

Japanese companies signed 
$2. 2b n- worth of investment 
contracts in China in the first 
nine montbs of last year, 
slightly more than in the 
whole of 1992. according to the 
Japan External Trade Organi- 
sation. China is now Japan's 
biggest new investment loca- 
tion, according to a survey by 
the Export-Import Bank of 
Japan. 

Yet Japan's caution has 
made it relatively late in the 
race for the Chinese market. 


By the middle of last year, it 
bad completed $5.2bn of invest- 
ment in China, set to rise to 
56bn this year, making it only 
the third foreign investor after 
Hong Kong and Taiwan. 

China, too. wants to develop 
the relationship. A recent com- 
mentary in People's Daily, the 
Communist Party newspaper, 
shows high hopes of Japan as a 
source of investment and 
advanced technology. 

China's long-term growth 
rate of 8-9 per cent had created 
couditions for prosperity in 
both China and Japan, and this 
was now accepted by the Japa- 
nese political and businessr 
leadership, it said. Japan Is 
funnelling about S200m into 
China annually to help train 
Chinese managers and' 
enhance Chinese expertise in 
various areas, Including envi- 
ronmental protection. 

There is a chance that Mr 
Hosokawa might confront 
another sensitive subject: 
Japan’s wartime atrocities in. 
Asia. This appears to be the 
minds of the Chinese public, 
judging by yesterday's demon-, 
strations for compensation out- 
side Japan's Beijing embassy. 

Mr Hosokawa won respect 
from same of his Asian part- 
ners when he first issued an 
apology, on becoming prime 
minister last August, for 
Japan’s wartime behaviour. 

Whether he chooses to 
repeat the gesture, that episode 
in history Is a brooding factor 
in the general background of 
Sino- Japanese relations. The 
Chinese themselves are not 
averse to manipulating Japa- 
nese guilt to their own advan- 
tage. 


I 


4 


US concern over Pyongyang missiles 


By Jurek Martin In Washington 

The US has expressed concern that 
North Korea is in the process of devel- 
oping two new types of long-range bal- 
listic missile with the potential to 
threaten most of Asia. 

Mr James Woolsey, director of the 
CIA, told a symposium at the agency’s 
headquarters on Thursday night that if 
tiie new North Korean missiles were 
bought by unnamed countries In the 
Middle East. Europe could also poten- 
tially be at risk. 


“These new missiles have yet to be 
flown," Mr Woolsey said, “and we will 
monitor their development, including 
any attempts to export them." Earlier 
this month Jane's .Defence Weekly 
reported that satellite reconnaissance 
had detected what appeared to be full 
scale mock-ups of two new missiles at a 
site of North Korea's north east coast 
He drew a distinction between the 
threats posed by the North's nuclear 
and missile programmes. On the for- 
mer, the US, according to congressional 
testimony this week by Mr Winston 


Lord, the undersecretary of state for 
Aslan affairs, still hopes Pyongyang 
will agree to full inspection of its facili- 
ties. 

But planned bilateral talks due next 
week have been postponed and the US 
is again considering re-activating the 
Team Spirit military exercises held 
jointly with South Korea. These were 
put on hold, as were prospective 
deployment of US Patriot anti-missile 
missiles in South Korea, so as to 
induce the North to co-operate with 
inspectors from the International 


Atomic Energy Agency. 

Yesterday, Congressman Lee Hamil- 
ton, chairman of the House foreign 
affairs committee, urged farther pres- 
sure on North Korea, including deploy- 
ment of the Patriots and going ahead 
with the Team Spirit exercises. 

“The pattern has been that North • 
Korea does eventually accede if enough 
pressure is brought on them," he said 
on TV. “AH we can do is to ratchet that 
pressure up and at the same time keep 
open the opportunity for a negotiated 
solution.” 


:: 

‘.V 


i's 



Police armed Zulus, says judge 


By Path Waklmelr in Uhmdl, 
South Africa 

A judicial commission of 
inquiry in South Africa 
yesterday published evidence 
showing that senior officers of 
the South African police 
helped supply weapons to the 
Zulu-based Inkatha Freedom 
Party, the clearest suggestion 
yet of security force 
involvement in political 
violence. 

The report, released 
yesterday by the prestigious 
Goldstone Commission, headed 
by Judge Richard Goldstone, 
appeared to support 
longstanding allegations by the 
African National Congress that 
a “third force” is involved in 
political violence between 
Inkatha and the ANC. 

The report said a special 


police unit was involved in the 
manufacture and smuggling of 
weapons to Inkatha and that 
Lt-Gen Basie Smit, police force 
No 2, Maj-Gen Krappies 
Engelbrecht, head of police 
intelligence, and Maj-Gen 
Johan ie Roux, another senior 
police officer, had been aware 
of the unit's existence. 

President F W de Klerk said 
the three men had been 
suspended and an 
international task force would 
investigate their case. 

The commission's report 
alleged that senior police 
officers were involved in arms 
supplies to Inkatha since 1990. 
In 1992, the so-called 
Inkathagate scandal, involving 
government funding to Inkatha 
rocked the government of 
President de EGerk. At that 
time, he claimed he was 


unaware of the funding and 
insisted that all improper links 
between Pretoria and Inkatha 
had been severed. 

President de Klerk 
announced a purge of the 
senior ranks of the police force 
in late 1992 and appointed a 
respected officer of the South 
African Defence Force to 
conduct an Inquiry into 
security force involvement In 
violence. 

This was never published 
and its recommendations were 
never made known. 

Yesterday’s report said the 
men were involved in the 
manufacture of home-made 
weapons in the East Rand 
townships near Johannesburg 
which have seen some of the 
worst violence since political 
unrest increased dramatically 
four years ago. 


Meanwhile, in a move likely 
to increase the- potential for 
further political violence. Zulu 
king Goodwill Zwelethini held 
a public meeting at Ulundi, 
capital of the Kwa Zulu black 
homeland to call on his 
supporters to boycott April's 
all-race elections. 

He urged them to fight to 
defend the sovereignty of the 
Zulu nation, which he said was 
under threat. 

"I rail on ail Zulus to fulfil 
their sacred duty to defend our 
freedom and sovereignty," he 
told a crowd of 15,000 
heavily-armed Zulu warriors. 
The ANC and government had 
hoped to persuade the king to 
endorse the election, despite 
the opposition of Inkatha, but 
this hope was dashed last 
night by the king’s belligerent 
address. 


Top Indonesian 


Banks back Brazil 


bankers held in 


on restructuring 


4 



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Financial Times on Friday, March 25. 

It will examine a number of engineering companies which are developing new products 
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rest of Europe is poised to benefit from economic recovery. 

So, If you need to Know how well the engineering industry Is working, be sure to get 
your copy of the FT on Friday. 


FT. Because business is never black and white. 


$430m scandal 


By Victor Mallet m Bangkok 

Indonesia said yesterday it had 
arrested two senior bankers in 
connection with a scandal over 
a $430m f £294. 50m) tetter of 
credit extended by a state 
bank. The loan was supposed 
to finance petrochemical pro- 
jects but was allegedly diverted 
to Hong Kong. 

The case involving PT Rank 
Pembangunan Indonesia fBap- 
indo) is arousing intense inter- 
est among Indonesians and 
their trading partners because 
of concerns about the bad 
debts or the state banks, which 
account for about 60 per cent 
of bank business in the coun- 
try. 

The two men arrested were 
Mr TowiI Heryoto. who headed 
Bapindo until he was replaced 
by the government this week, 
and Mr Subekti rsmaun, who 
was chief of the bank when the 
unsecured letter of credit was 
issued in 1992. according to the 
Attorney General's office. 

Another former Baplndo 
executive and Air Eddy Tonsil, 
director of the Golden Key 
group which received the 
credit, were arrested earlier. 

With accrued interest, the 
loan is now supposed to be 
worth more than 8620m. but it 


is apparently not being repaid 
and it is not clear where the 
money went. 

Mr Mar’ie Muhammad, the 
Indonesian finance minister, 
announced recently that latest 
figures showed 2L2 per cent or 
around $7bn of outstanding 
loans extended by the seven 
big state banks were classified 
as bad or doubtful, compared 
with 17.4 per cent at the end of 
1992 and 6 per cent in 1990. 

Bankers in the private sector 
believe some state banks, 
which have a reputation for 
lending money to businessmen 
with good political connec- 
tions, have bad or doubtful 
loans amounting to as much as 
60 per cent of their portfolios. 
Although appalled by the 
extent of the problem, they are 
happy to see the finance minis- 
try trying to tackle the issue in 
public. 

"In the past this would never 
have come up; it would have 
been swept under the carpet," 
said one banker. “It has been 
taken very seriously by the 
minister of finance." 

The Attorney General’s 
office said it wanted to bring 
the four men in jail to trial as 
soon as possible. “This is not a 
case about bad or problem 
debts, but about corruption." 


By Angus Foster in SSo Paulo 

Brazil's bank creditors 
yesterday appeared ready to go 
ahead with a $52bn (£35.60bn) 
debt restructuring even though 
the country failed on Wednes- 
day to win a standby loan 
accord from the International 
Monetary Fund. 

Creditors holding at least 66 
per cent of the debt need to 
drop their original requirement 
for IMF support if the deal is to 
go ahead. Mr William Rhodes, 
vice-chairman of Citibank and 
chairman or the bank advisory 
committee, said he was "confi- 
dent we will get the waivers by 
the end of next week". Banks 
on the advisory committee, 
which account for about a 
third of the debt, have already 
backed the waiver and asked 

other creditors to agree by 
March 24. 


Bankers were rushing to 
complete various technical 
details in time for a notifica- 
tion deadline due to expire last 
night. The restructuring is due 
to go ahead on April 15 and 
would make Brazil the last 
large Latin American country 
to complete a Brady-type debt 
deal 

Brazil, the developing 
world's largest debtor nation, 
is also thought to have made 
arrangements to secure up to 
$2.8bn in US Treasury zero 
coupon bonds as a guarantee 
for the first part of the 
restructuring. 

The guarantee was originally 
to have been provided by the 
US Treasury, but only tf the 
IMF had provided a standby 
facility. Brazil says it has “exe- 
cuted arrangements" to have 
the collateral in place when, it 
is needed. 


HK property boom row 


Hong Kong's government was 
yesterday urged to bring in 
drastic measures or face social 
unrest, Louise Lucas writes 
from Hong Kong. 

Mr Martin Lee. leader of the 
minority United Democrats 
Party, told a finance committee 
meeting of the Legislative 
Council (LegCo) that people 
were growing increasingly dis- 
gruntled at being unable to 


buy a flat in the boom market. 
“It could end up in public dis- 
turbances." he said, proposing 
the introduction of a property 
gains tax. 

Mr Tony Eason, secretary for 
the planning, environment and 
land department, said the 
answer was to speed up the 
supply of land. This is limited 
to 50 hectares a year under the 
1984 Sino-British agreement 




FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 



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Testing in jeopardy, stress head teachers 


By John Aulhers 

Secondary school heads yesterday 
stepped up pressure over the 
national curriculum with a state- 
ment that Industrial action by only 
erne teacher could be enough to halt 
all tests in a schooL 

Mr John Fatten, the education sec- 
retary, immediately attempted to 
persuade heads to take a stronger 
liny against the action. 

Addressing the Secondary Heads 
Association's annual conference in 


Bournemouth, he said' “Any indus- 
trial action in schools puts heads 
squarely in the crosstire. That is 
bound to he uncomfortable. But 
head teachers as managers and chief 
executives of their schools know 
that big issues are at risk. 1 * 

Head teachers are in an awkward 
position because the UK's largest 
teaching uni nn the National Union 
of Teachers, intends to boycott all 
the tests. 

Mr Patten said such action was 
“damaging and pointless" and added 


that both Sir Ron Dealing, the gov- 
ernment’s chief adviser on the tests, 
and Ofsted, the education watchdog, 
had found the tests valuable. 

Pressure on Mr Patten had seemed 
to have lifted after the two other 
teachers' unions which boycotted 
the tests last year - the Association 
of Teachers and Lecturers and the 
National Association of Schoolmas- 
ters Union of Women Teachers - 
advised their members to abandon 
the boycott this year. 

But Mr John Sutton, general secre- 


tary of the Secondary Heads Associa- 
tion, which includes 80 per cent of 
all secondary schools, made it clear 
that the NUT could still cause seri- 
ous disruption. 

Mr Sutton told conference: “Our 
members will not ask teachers to 
undertake tasks which members of 
the NUT have refused to do. If you 
have a head of department who is 
boycotting, you've probably blocked 
all tests for that department 1 ’ 

He added that NUT members 
responsible for a school's over- 


all timetabling would be able to 
force abandonment of the tests alto- 
gether. 

Mr Patten made a strenuous 
attempt to shake beads away from 
this position, saying that both the 
law and the Dealing proposals were 
at stake. X as head teachers, you 
believe in the consensus which Sir 
Ron has fashioned, I hope you’ll 
stand up for that consensus and 
make it work,” he said. 

In another speech to Conserva- 
tives in Andover last night, Mr Pat- 


ten expressed deep concern at the 
rfgriiinfr in the te griitog of British his- 
tory in schools and called for it to 
take pride of place in schoolchild- 
ren’s historical studies. 

“We must not allow our children 
to be robbed of their birthright of 
knowledge about our country's his- 
tory,” he said 

• Mr Brie Forth, the schools minis- 
ter. yesterday announced that 41 
local education authorities will 
share a total of £5£L?m to improve 
school buddings. 


Jumpy bond 
markets hit 
M4 lending 


By Phiip Coggan, 

Economics Correspondent 

Turmoil on the bond markets 
in February fed through to the 
money supply figures last 
month. 

A £1.95bn repayment of debt 
by securities dealers meant 
that sterling tending to the M4 
private sector was just £600m 
on a seasonally adjusted basis, 
compared with market fore- 
casts of £lAbn. It was the sec- 
ond consecutive month that 
M4 lending was much weaker 
than expected and followed a 
lending figure of £14lm in Jan- 
uary. 

The main factor behind Feb- 
ruary’s weakness appears to 
have been the need for securi- 
ties dealers to repay debt and 
reduce their vulnerability to 
further price falls in the bond 
market 

According to the British 
Bankers Association, dealers 
borrowed £2bn in October and 
November, money which prob- 
ably helped finance the end-of- 
year surge in bond prices. But 
prices fell sharply in February. 

Mr John Shepperd, chief 
economist at Yamaichi Inter- 
national (Europe), said: “The 
inference (from the lending fig- 
ures) is that securities houses 
have reduced their positions in 
the bond market" 

The BBA repotted that total 
sterling lending by the main 
British banking groups to the 
UK private sector fell £244m in 


February, following a rise of 
£652m in January. Consumer 
borrowing was a weak £38m. 
down from a revised £82m in 
January. 

Lord Inchyra, director gen- 
eral of the BBA, said: "Overall, 
despite the recent cut in inter- 
est rates, there is little demand 
for funds from the corporate 
sector, which seems to be 
obtaining any necessary fund- 
ing from a combination of 
improved profitability and con- 
tinued use of the capital mar- 
kets.” 

The weakness of the tending 
figures was offset by other 
money supply figures yester- 
day. 

The annual growth in M4 as 
a whole, the broadest measure 
of the money supply, was 5.9 
per cent, up from 5.6 per cent 
in January. 

The monthly rise between 
January and February was 0.9 
per cent, above analysts' expec- 
tations. 

M4 has been accelerating in 
recent months and the annual- 
ised growth rate over the three 
months to February was 6.8 
per cent. The government’s 
monitoring range is 3 per cent 
to 9 per cent 

Mr Adrian Cooper, UK econ- 
omist at James CapeL said that 
January's strong growth in M4 
was due to special factors, par- 
ticularly a large public sector 
borrowing requirement which 
was not fully funded by gilts 
issues. 


Societies In a squeeze 



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Upturn has some downside for societies 


By Alison Smith 
and Andrew Taylor 

The upturn in building 
societies’ mortgage lending is 
more of a mixed blessing than 
it might appear. 

First, the good news. Net 
new commitments in February 
totalled 2.93 bn, compared with 
l.83bn the previous month and 
£2.72bn in February last year. 
The figure was the highest 
monthly total since July. 

But the bad news for them is 
the difficulty in funding the 
increase in lending if they are 


unable to attract enough retail 
savings. 

Last month gross mortgage 
lending increased to £2.24bn 
compared with £2.06bn in Jan- 
uary and was 17 per cent more 
than the corresponding month 
last year. 

Mortgage applications tradi- 
tionally pick up at this time of 
year as the peak spring buying 
season approaches. Nonethe- 
less the figures confirm the 
recent upsurge In demand 
reported by housebuilders and 
estate agents. 

House sales, according to 


Inland Revenue conveyancing 
records, rose by more than a 
third in January compared 
with January last year. 

Prices have also started to 
rise again. According to Hali- 
fax building society, the UK’s 
largest, the average price of a 
home rose by 3^ per cent to 
£62.498 during the 12 months to 
the end of January. 

According to seasonally 
adjusted figures published by 
the Bank of England, there is 
further good news for societies, 
in that they seem to be regain- 
ing some of the market share 


they lost to banks last year. 

Building societies’ difficul- 
ties In attracting retail savings 
increases the pressure on the 
government to move quickly in 
relaxing the amount of funds 
that societies can raise on the 
wholesale markets, where 
funding is cheaper at the 
moment 

A rise in the statutory limit 
from 40 per cent of funds to 50 
per cent is in prospect but a 
change in the law is dependent 
on the passage of the de-regula- 
tion bill, which is still some 
months away. 


In the meantime, Mr John 
Wriglesworth, societies analyst 
at UBS, says that in order to 
allow societies to compete, the 
Building Societies Commission, 
the sector’s statutory regula- 
tor, should raise the regulatory 
limit on wholesale binding 
which it sets for each society, 
below the overall 40 per cent 
ceiling. 

“The commission would be 
well advised to relax individual 
ratios ahead of the impending 
general relaxation arising from 
the legislation on de-regula- 
tion,” he says. 


Hurd 
restresses 
stance on 
EU votes 

By James BBtz and Ivor Owen 

Mr Douglas Hurd, the foreign 
secretary, yesterday sought to 
reassure Conservatives that be 
would not strike an agreement 
on a new European Union vot- 
ing system that would dilute 
British interests. 

Addressing Conservatives in 
Poole last night, Mr Hard said 
there was no guarantee that 
Britain would reach agree- 
ment with its EU partners on a 
new voting system when for- 
eign ministers resumed talks 
on the issue next week. 

“If we are to move forward 
os a Union of 16, it should be 
on the haste of as widespread 
consent as possible,” he said. 
“That is the best way to avoid 
conflict and bickering on a 
permanent baste.” 

He said that the British pub- 
lic wanted the government to 
exercise judgment in the inter- 
ests both of Britain and 
Europe. 

EU member states propose 
that the threshold for the 
“blocking minority" should 
rise from 23 to 27 votes when 
four new countries enter the 
union next year. Britain and 
Spain are opposing this, 
although both are being 
offered a compromise that 
would allow a minority of 
states to see a two-monih 
delay in decisions. 

Meanwhile, pressure intensi- 
fied on the government yester- 
day to accept that its citizens 
should have a continuing right 
to initiate individual cases in 
the European Court of Human 
Rights. 

Mr Richard Alexander, Con- 
servative MP for Newark, In a 
Commons debate on the Coun- 
cil of Europe, warned that 
Britain’s reputation would be 
damaged if the government 
tried to insist that it should 
remain a conditional right, 
subject to review at five-yeariy 
intervals. 

Turkey, whose record on 
human rights would not com- 
mend Itself to the British peo- 
ple, was the only country 
to have adopted a similar 
attitude. 

Mr Mark Lennox-Boyd, for- 
eign office junior minister, 
said the UK government was 
still considering a suggestion 
that the right should he made 
mandatory. 


Revenue presses on with 
quest for greater power 

Bv Andrew Jack the current bilL would have been no autoi 


By Andrew Jack 

The inland Revenue yesterday 
pledged to lobby for additional 
powers to cany out its tax 
investigations after its attempt 
to introduce amendments in 
the finance bill failed on 
Thursday night. 

It plans to issue a consulta- 
tive document in the next Hew 
months with the aim of intro- 
ducing clauses into the next 
finance bill to enhance its right 
to gain access to accountants’ 
papers. 

The derision came after the 
government decided on Thurs- 
day night to withdraw section 
241 of the finance bill, which 
would have increased the pow- 
ers of the Revenue to seize 
books and records. The Reve- 
nue said that it had no plans to 
reintroduce the proposals in 


the current bill. 

The withdrawal was trig- 
gered by substantial opposition 
to the draft legislation, includ- 
ing protests from Conservative 
politicians and from profes- 
sional tax and accounting bod- 
ies. 

The idea of granting the Rev- 
enue additional powers for its 
inspectors was mooted by Mr 
Kenneth Clarke, the chancel- 
lor. In his Budget speech last 
November. Details were pro- 
vided in January's finance btlL 

The Revenue said that it 
needed additional powers 
because co-operation between 
it and tax practitioners had 
declined since the 1970s. 

The draft section 241 would 
have permitted the Revalue to 
gain permission for a raid from 
someone authorised by one of 
its board members. There 


would have been no automatic 
right for the accountant to 
appeal against this power. 

It specified that a belief that 
a tax accountant knew a tax 
return of a client was incorrect 
would be sufficient to justify a 
raid to gain access to papers. 
This substantially enhanced 
the Revenue's ability to gain 
access to accountants’ records. 

The position was modified in 
guidance notes issued by the 
Revenue last week, which said 
that a board member would 
have to approve the raid, and 
that the accountant would be 
able to appeaL 

Mr Peter Wyman, tax part- 
ner at Coopers & Lybrand, 
said: “If the Revenue needs 
additional powers they should 
have them, bat there must he a 
way to provide adequate safe- 
guards." 


Scott says Customs probe 
of Matrix was inadequate 


By John Mason, 

Law Courts Correspondent 

Customs officials were 
yesterday criticised by Lord 
Justice Scott for failing to ask 
the right questions during 
their probe into the Matrix 
Churchill anns-to-iraq case. 

The judge, heading an 
Inquiry into the affair, said 
investigators had not properly 
followed up allegations that 
officials "did not care” whether 
machine tools sold to the Iraqis 
were used to make weapons. 

Miss Annabelle Bolt a Cus- 
toms and Exrise lawyer, told 


the inquiry that the Depart- 
ment of Trade and Industry 
appeared reluctant to see the 
affair investigated because 
shortcomings in its operations 
might be revealed. 

Earlier the inquiry beard 
how Customs continued with 
its prosecution of three direc- 
tors of the machine-tool com- 
pany in spite of concern that it 
might turn into another 
“supergun" fiasco. 

Then, charges brought over 
the exporting of pipes for the 
Iraqi supergun project were 
dropped after the attorney gen- 
eral warned Customs that the 


prosecutions would probably 
be unsuccessful. 

Sir Brian Unwin, then chair- 
man of the Customs Commis- 
sioners, wrote in a memoran- 
dum about the Matrix 
Churchill case: “To put it 
crudely. I don’t want a repeat 
of the gun affair.” 

His note was written in 
December 1990. two days after 
he attended a meeting of civil 
servants to discuss newspaper 
allegations that Mr Alan Clark, 
the former trade minister, gave 
Matrix Churchill “a nod and a 
wink” to carry on selling to 
Iraqi munitions factories. 


Insolvency 
priorities 
to include 
sick pay 

By Andrew Jack 

Holiday and sickness pay wQl 
rank as preferential creditors 
in the government’s emer- 
gency insolvency bill amend- 
ment to be discussed in the 
Commons an Monday. 

According to a draft circu- 
lated yesterday they will be 
included as liabilities with 
wages, salaries and pension 
contributions, to be paid first 
from the proceeds of com- 
panies that enter receivership 
Or administration. 

The legislation, which 
applies retrospectively from 
March 15. clarifies the difficul- 
ties raised following the 
Appeal Court ruling on Para- 
mount Airways, the insolvent 
charter mtKtib in administra- 
tion. The judgment said that 
receivers and administrators 
would be deemed to have 
adopted the obligations of 
existing employment contracts 
after 14 days if they did not 
issue new contracts. 

After two weeks of lobbying, 
Mr Michael Heseltine, trade 
and industry secretary, 
announced the changes on 
Monday and officials have been 
working since to introduce the 
legislation. 

• A private member’s bill to 
amend sections of the 1986 
insolvency act dealing with the 
valuation of assets of liqui- 
dated companies completed its 
passage through the Commons 
without debate yesterday. 

The bill, sponsored by Mr 
John Butterfill, Conservative 
MP for Bournemouth West, 
now goes to the House of 
Lords. 


Mayhew to slam 
Adams position 


By Michael Cassefl 
and David Owen 

British ministers are preparing 
to exploit the St Patrick’s Day 
call from President BID Clinton 
for Sinn F4in and the IRA to 
accept the Downing Street 
declaration. 

Sir Patrick Mayhew, the 
Northern Ireland secretary, is 
today expected to drive home 
the political advantage created 
by the US administration's 
decision to offer unequivocal 
support for the Anglo-Irish 
peace initiative. 

In his first full-length speech 
since the IRA mortar attacks 
on Heathrow airport. Sir Pat- 
rick will directly attack Mr 
Gerry Adams, Sinn Ffein presi- 
dent, saying that he has deliv- 
ered only death and threats of 
death. The Northern Ireland 
secretary will tell Conservative 
activists in south-east En gland 
that the attacks at Heathrow 
Airport have enabled people to 
make up their minds about the 
republican leader's true inten- 
tions. 

Mr Clinton made It clear at a 
dinner in Washington on 
Thursday night that he would 
not authorise a repeat visa for 
Mr Adams to visit America 
until the IRA ended violence. 

In another policy turn- 
around, he has dropped earlky 
controversial plans to send a 
“peace envoy” to Northern 
Ireland. 

The president called on “all 
those who practice violence for 
political aims to lay down their 
arms”. He urged Sinn F6in and 
the IRA to endorse the joint 
declaration as “the only way 
forward”. 

Ffis remarks were backed up 
yesterday by Mr Albert Reyn- 
olds, the Irish prime minis ter. 


Government and opposition 
business managers are 
thought to be trying to resolve 
a continuing dispute over 
membership of the Northern 
Ireland select committee 
ahead of nest week’s meeting 
of the cross-party committee of 
selection which will deride the 
MPs to sit on the new body, 
David Owen writes. 

Labour is understood to be 
continuing to object to Conser- 
vative proposals which would 
restrict the party's member- 
ship on the 13-seat body to two 
MPs. The Liberal Democrats 
are also thought to be object- 
ing to the proposals, nnder 
which they would have no rep- 
resentation on the committee 
at afl. 

MPs voted to set up the com- 
mittee earlier this month. It is 
expected to start work shortly 
after Easter. 

who was in Washington to join 
Mr Clinton for St Patrick's Day 
celebrations. 

He said the message of US 
support would have an impor- 
tant influence on the outcome 
of the initiative. 

Mr Reynolds said political 
leaders would have to “show 
daring as never before, forti- 
tude as never before, in 
bringing about the goal of 
peace”. 

Mr Adams, who on Thursday 
said the US administration 
could play an important role in 
the search for peace, yesterday 
attacked the British govern- 
ment for blocking progress. He 
said Downing Street’s inflexi- 
ble and unimaginative attitude 
was the major obstacle to end- 
ing the current impasse. 

The fight goes on. Page 9 


750 jobs 
shed at 
three 
groups 

About 750 jobs in steel, 
engineering and ship repair 
faced the axe last night follow- 
ing announcements of cuts at 
British Steel Tinplate in south 
Wales, Briton, the Doncaster- 
based wire rope group, and 
A&P Appledore on Tyneside, 
Andrew Baxter and Chris 
Tighe write. 

British Steel Tinplate is cut- 
ting 315 Jobs by restructuring 
work patterns and closing 
older coating lines. It said 
about 15S jobs would go at its 
Ebbw Vale works In Gwent 
and about 190 jobs at the 
Trtxs tie works near Llanelli. 

A&P Appledore, the UK's 
largest commercial ship 
repairer, announced 150 shop 
floor redundancies at its Tyne- 
side yards, more than halving 
the present hourly paid work- 
force. 

Bridon is seeking up to 250 
redundancies, initially on a 
voluntary basis. The move is 
part of a restructuring pro- 
gramme announced last 
month 

Job losses ‘hit 
ethnic workers’ 

Black and Asian workers are 
sevtm times more likely to lose 
their jobs than white people, 
the Trades Union Congress 
says in an analysis, published 
today, of the government's 
labour force survey. 

The rate of job losses among 
white workers was 0.5 per cent 
between the summers of 1992 
and 1993, but for workers from 
ethnic minorities there was a 
8.7 per cent tall 

The TUG is today holding a 
demonstration in east London 
against racism. 

Northern growth 
continues, says CBI 

Businesses in north east 
En g l a nd and Cumbria are con- 
tinuing to see steady growth in 
trade, although margins 
remain very tight, Mr David 
Cranston, the Confederation of 
British Industry's, new north- 
ern regional chairman said yes- 
terday. 

Mr Cranston, chief executive 
of Northumbrian Water, said 
the northern economy was con- 
tinuing its steady recovery, 
and a few companies were find- 
ing market conditions posi- 
tively buoyant 

Labour attacks 
business strategy 

Labour yesterday accused the 
government of neglecting 
important opportunities for 
British business presented by 
the rising demand for the con- 
trol of industrial pollution 
around the world. 

It called on the Department 
of Trade and Industry to sup- 
port businesses that provide 
environmental technologies. 

£80,000 fines for 
Guinness site death 

RF Winder Electrical, a Leeds 
subsidiary of drinks grodp 
Guinness, and Mr Michael 
Sault, its technical engineering 
manager, were fined a total of 
£75,000 and £5,000 respectively 
yesterday at Harrow Crown 
Court for a breach of safety 
rules which resulted in the 
death of a foreman. 

Mr Anthony Flaherty died in 
September 1992 after he 
touched live equipment carry- 
ing 11,000 volts while installing 
an extension to switchgear at 
the Guinness Brewing World- 
wide brewery in Park Royal 
west London. 

Missing persons 
bureau launched 

The first police national miss-, 
ing persons bureau was 
launched yesterday at Scotland 
Yard, ft expects to log details 
of about 100,000 people a year. 

Mr David Veness, Metropoli- 
tan Police deputy assistant 
commissioner, said most of the 
missing people would tw 
reunited with relatives very 
quickly and only about 1,600' 
would remain unaccounted for. 


Up to eight BZW directors break £lm earnings barrier 


By Andrew Jack 

Up to eight directors of Barclays de 
Zoete Wedd, the investment banking 
arm of Barclays, received remunera- 
tion of at Least Elm last year, it 
emerged yesterday. 

The highest paid was Mr David 
Band, chief executive, who received 
about £i.4m, including pension con- 
tribution, salary and substantial 
bonuses. 

Bonus payments to directors and 
staff were partly routed through 


techniques designed to reduce and 
delay tax charges, which triggered 
discussions last year between the 
company and Inspectors from the 
Inland Revenue. 

About £500,000 of Mr Band’s own 
payments are believed to have been 
deferred over the next three to five 
years. 

The revelations come in the wake 
of substantial bonuses paid to a 
number of City executives, including 
the partners of Goldman Sachs, the 
private US investment bank, which 


is believed to have generated pre-tax 
profits of $2.7bn (£LB4bn) last year. 

BZW’s substantial payments 
reflect the company’s success in gen- 
erating profits of £50lm last year, 
which has led to more than 6,000 
employees in the company sharing 
bonuses totalling sioom. 

Some of the details of the 
remuneration are revealed in 
the 20-F form which has just been 
filed with the US Securities and 
Exchange Commission. However, 
BZW refused to comment on the 


'figures or methods of payment. 

t smiling tax experts said yesterday 
that a number of merchant banks 
and other companies have used tax 
avoidance and deferral techniques in 
spite of efforts by the Revenue to 
damp down since the last Budget 
Ms Moira Elms, a tax partner 
with Coopers & Lybrand, said that 
employers are still able to pay 
bonuses In ways which avoid 
National Insurance Contributions, 
while income tax owed by their staff 
must always be paid but 


can be substantially delayed. 

One approach is to pay the 
bonuses to an insurance company, 
which issues life Insurance policies 
with very short-term maturities. 

She said she had heard of other 
techniques including the use of 
schemes operated by specialist con- 
sultancies winch provided bonuses 
through fine wines, diamondis and 
“bonus bands", or vouchers redeem- 
able at retail outlets. 

These come outside the definition 
qf earnings as defined for the pur- 


pose of National Insurance Contribu- 
tions. She said that the way in 
which bonuses are received by staff- 
can defer their income tax liability 
for up to is months. 

“There are still some loopholes . 

which we will tell our clients about, 

she said. “But we warn that they 
will be closely scrutinised by the 
Revenue and are only worth d oing jf 
they are very carefully structured 
and there are significant numbers ® 
employees or sizes of bonuses at 
stake." 



FINANCIAL TIMES WEEKEND MARCH 1 9/MARCH- 20 1994 


= UK 


«r- 


Mirror cleared to 
buy Independent 


By Raymond Snoddy 

The consortium backed by 
Mirror Group Newspapers was 
yesterday given government 
approval to taka over Newspa- 
per Publishing, owner of The 
Independent and the Indepen- 
dent on Sunday. 

Mr Michael Heseltine, trade 
and industry secretary, decided 
not to refer the deal to the 
Monopolies and Mergers Com- 
mission on the gro unds that 
the papers "are not economic 
as going concerns" and there 
was a case for urgency. 

Unless there is judged to be a 
serious financial threat to the 
existence of a title an MMC 
reference is usually required 
when the combined circula- 
tions of newspapers Involved 
In takeovers is more than 
500,000 a day. 

Mr Heseltine did not, as 
many expected, accompany bis 
permission with conditions. 

He said: “I have concluded 


that the public interest does 
not require me to stipulate 
conditions." 

Mr David Montgomery, chief 
executive of MGN, emphasised 
that guarantees of editorial 
independence were "enshrined 
in print in the consortium 
agreements and we are bound 
by them." 

Mr Heseltine rejected the 
views of 99 MPs who signed an 
early day motion arguing that 
as an absolute mtrrimum condi- 
tions should be imposed to pro- 
tect the editorial independence 
of The Independent 

The Commons trade and 
industry co mmit tee is expected 
to consider on Wednesday 
whether to seek an inquiry 
Into the issue. 

Journalists at the two loss- 
making newspapers asked for 
the reference to the MMC and 
Mr Tony O’Reilly’s Indepen- 
dent Newspapers group of 
Ireland, the largest shareholder 
in Newspaper Publishing at 


29.9 per cent, wanted condi- 
tions to be imposed. Mr 
Heseltine also cleared its stake. 

The consortium, whose other 
members are a group of found- 
ers led by Mr Andreas Whit-' 
tarn Smith and newspaper 
groups El Pais of Spain and. La 
Repubblica of Italy, will press 
ahead with the reorganisation 
of Newspaper Publishing. 

MGN will become responsi- 
ble for running The Indepen- 
dent apart from the editorial 
department The Independent 
will join the MGN titles In the 
Canary Wharf tower In Lon- 
don’s Docklands in the next 
two months. 

Apart from the reorganisa- 
tion as much as £20m may 
have to be put into the com- 
pany to improve editorial con- 
tent and Increase promotion. 

Mr Whittam Smith will be 
chairman and editor-in-chief. 
There are no plans to offer 
board representation to Mr 
enemy's group. 



John Major addressing troops yesterday at a UN base in Bosnia. He told them that the cha n ces for real peace had improved, 
Indicating that more British troops may be needed, and he called on other cou n tries far reinforcements Press Association 


Pressure 
for move 
on Tube 
lease plan 

By Charles Batchelor 
and David Owen 


A 75-strong group of London 
companies yesterday launched 
a campaign to persuade the 
Treasury to approve a £740m 
leasing deal for new tr ains 
on London Underground’s 
Northern line. 

As they did so Mr Michael 
Portillo, chief secretary to the 
Treasury and the Conservative 
party’s local election campaign 
coordinator for London, tried 
to pass blame for uncertainty 
about the plans to London 
Underground’s management. 

He said the government had 
not yet taken a view on the 
proposal being promoted by 
ABB Transportation, a rolling 
stock manufacturer. 

Mr Steven Norris, transport 
minister, had told MPs that a 
decision on the scheme could 
come within days. 

Derby-based ABB Transpor- 
tation has been negotiating 
with London Underground for 
the past five months to secure 
a 20-year deal to build, main- 
tain and operate the rolling 
stock. The trains would cost 
£A40m with a 20-year mainte- 
nance deal worth another 
£300m. 

The Northern Line Coalition, 
coordinated by London First, a 
business initiative to promote 
the capital, put its weight 
behind that of Tory MPs whose 
constituencies border the 
line. 

Pressure for more flexibility 
from the government on the 
terms of its private finance ini- 
tiative have also came from the 
leasing industry. Mr Tony 
Jukes, managing director of 
Hill Samuel Asset Finance, 
said one way to break the log- 
jam would be for the Treasury 
to ease the terms of leasing 
deals progressively to allow 
the financial groups involved 
to gain experience of the 
rolling stock market 

“At the moment they are 
asking us to make too much of 
a leap," he said. 

The issue has assumed a 
high profile in the approach to 
load elections in May - with 
the government bracing Itself, 
for heavy losses in outer Lon- 
don. 

Mr Portillo told reporters 
that London Underground was 
free to spend some of £L5bn it 
was due to receive from the 
government over the next 
three years on new Northern 
Line trains but did not con- 
sider the investment enough of 
a priority to do so. 


Fears over opencast guidance 


By Michael Smith 

Government draft guidance on 
opencast cod mining ; is likely 
to perpetuate the practice in 
areas where it is unacceptable 
to local communities, the Coal- 
field Communities Campaign 
pressure group said yesterday. 

According to a campaign 
report, the government draft 
Mineral P lanning Guidance 3 
foils to give local councils ade- 
quate powers to deal with the 


“flood” of opencast proposals 
likely to follow privatisation of 
the coal industry. 

It describes as unworkable 
the proposal that local councils 
should identify in advance the 
areas where opencasting could 
take place. 

The campaig n says Bn* guid- 
ance gives no encouragement 
to local authorities to negotiate 
community benefits as com- 
pensation to residents who are 
affected by opencast cBm- 


The campaign also says that 
the new guidance "still intro- 
duces ‘national interest’ con- 
siderations in favour of open- 
casting”. This, it says, should 
be deleted to avoid bias in con- 
sidering opencast proposals. 

The Department of the Envi- 
ronment said the new guidance 
would introduce a more envi- 
ronmentally conscious regime 
than its predecessor. It wel- 
comed the campaign's contri- 
bution to the consultation. 


Under the previous version of 
the guidance, issued in 1988, 
local councils have found it 
extremely difficult to resist 
opencast proposals that cause 
what they consider to be unac- 
ceptable environmental dam- 
age or nuisance to residents. 

The Coalfield Communities 
Campaign says local authority 
rejections of opencast propos- 
als have been more likely to be 
overturned on appeal than any 
other form of development. 


Doubt cast on book-pricing pact 


By Raymond Snoddy 

Booksellers will be warned 
next month by a leading pub- 
lisher that the net book agree- 
ment, which governs the price 
of most books, may be unsus- 
tainable. 

Mr Eddie Bell, executive 
chairman of HarperColIins, the 
publishing arm of the Murdoch 
media empire, will issue the 


warning at the annual confer- 
ence of the Booksellers Associ- 
ation in Jersey. 

The NBA is a voluntary 
agreement by publishers to sell 
books at the recommended 
price and not offer discounts. 

Opponents say the lack of 
discounts cuts the number of 
books sold. Supporters stress 
the association's role in sus- 
taining a wide range of titles 


and independent bookshops. 

Mr Bell, who published Lady 
Thatcher's autobiography, The 
Downing Street Years, empha- 
sised yesterday that he sup- 
ported the agreement and that 
HarperCoDins would not aban- 
don it unilaterally. 

But he feared that it was 
becoming unsustainable 
because of “the massive pres- 
sure” from the growing influ- 


ence of book and warehouse 
dubs, who are not bound by 
the NBA. In November, the 
Office of Fair Trading 
launched a review of the NBA 
to see whether it still acted in 
the public interest 
Reed Elsevier is the only 
publisher to have published all 
its books outside the NBA, 
allowing booksellers to offer 
discounts. 


MPs to probe 
committee systei 


By David Owen 

A powerful committee of MPs 
is preparing to review how 
Westminster's select commit- 
tee system can be made to 
function more effectively. 

The cross-party Commons 
liaison committee - consisting 
of all the select committee 
chairme n — wants to conduct 
tiie review partly in response 
to a campaign of procedural 
non-co-operation with the gov- 
ernment that Labour has been 
waging at Wes tmins ter since 
December. 

Some of the chairmen are 
pressing for the liaison 
committee to cast its net 
wider. 

They would like to see the 
review era mine whether the 
select committees, parliament's 
most powerful tool for scrutin- 
ising the executive, need 
greater powers to do their job. 

In particular, they want the 
review to consider whether 


there should be an automatic 
right for committee recommen- 
dations to be put to a Com- 
mons vote. 

Since many af the chairmen 
believe that the committees' 
powers are already extensive 
and adequate, the scope of the 
review is generally expected 
to fall short of these demands. 

It is expected to consider, 
however, whether more debat- 
ing time needs to be set aside 
in the Commons to evaluate 
select committee reports, and 
whether steps need to be taken 
to limit the influence of party 
whips. 

The most bad blood in the 
procedural battle has been 
provoked by Labour's decision 
to refuse to allow its MPs to 
“pair” - that is, to agree with a 
Tory counterpart to miss a 
rum-crucial vote. 

This has forced the cancella- 
tion of planned select commit- 
tee trips to South Africa and 
Belize.'- 


Mr Mole 
wants to 
bury TV 



By Raymond Snoddy 

Mr Terry Cohn is trying to 
become a mole In the 
multi-minion pound cable tele- 
vision Industry. 

His aim is to penetrate the 
cable companies and persuade 
them to stop digging 1 the 
streets when they lay tiralr 
cable networks, often leaving 
unsightly “scars” behind. 

His interest however is more 

to do with business than the 
urban environment. Mr Cohn 
is lyo rang in g director of Fower- 
mole International, a company 
♦hat manages to lay cables and 
pipes without having to dig up 
ti re streets. 

“The need for trenching Is a 
thing of the past The alterna- 
tive is not only quicker but 
significantly cheaper,” Hr 
Cohn said yesterday. 

The moles, already at work 
for British Gas, are pneumati- 
cally powered. A piston 
Impacts against an anvil in 
Grant of the casing and propels 
tire mole through tire ground, 
compacting the earth as it 
goes. The mole, Mr Cohn says, 
can construct a 100 metre hole 
in a single stretch travelling 
at tire rate of one metre a min- 
ute. 

A cable can then either be 
inserted In the hole or the 
mole can pull the cable 
through as it goes. 

“1 am not sure why the cable 
industry has been hesitant to 
use moles rather than trench- 
ing,” said Mr Cohn, pointing 
out that moles were used to 
bujQd cable networks in both 
France and Germany. He 
hopes to be able to demon- 
strate his British-made 
machines - which cost 
between £5,000 and EtOJMW - 
to the cable industry. 

Yesterday, Mr Cohn staged a 
demonstration for senior Brit- 
ish Gas engineers at Sitting- 
borne, Kent 

The mole went into an old 
cast iron gas pipe, smashing it 
as it went while at tire same 
time pulling a new pipe 
behind it. Povrermole Interna- 
tional hopes it will finally 
make a similar impact on tire 
cable industry. 


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This 1940s advertisement from 
the archives of the Proprietary 
Association of Great Britain 
would now be illegal because 
of a ban on absolute state- 
ments such as "best and saf- 
est” or suggestions that any 
remedy could restore “health 
and vigour”. 

The association today 
launches its revised rules on 
how members are allowed to 
advertise products. A ban on 


the use of celebrities to 
endorse medicines is one of 
the changes. Advertisements 
will also have to cany the 
words “always read the label" 
and the. name of the medi- 
cine's active Ingredient 
The association scrutinises 
4,000 advertisements a year to 
ensure they comply with the 
product licence, the Medicines 
Act and advertising codes of 
practice. 


Counter 
sales of 
medicines 
jump 14% 

By Diana Summers, 

Marketing Correspondent 

Sales of over-the-counter 
medicines increased last year 
nearly 14 per cent in value 
terms to £L2bn, according to 
figures today from the Propri- 
etary Association of Great 
Britain, the non-prescription 
medicines trade association. 

A significant part of the 
growth, which was nearly 5 per 
cent in volume terms, was 
accounted for by the introduc- 
tion of nicotine patches and 
the flu epidemic at the end of 
1993, said the association. 

The market for anti-smoking 
products was worth £63m last 
year - an increase of nearly 
200 per cent in value terms. 

Skin treatments were worth 
£128m, up 18 per cent Other 
categories showing growth 
included treatments for thrush 
and cold sores - recent addi- 
tions to the OTC market 

One significant growth area 
this year is likely to be indiges- 
tion remedies. Earlier this 
month, the decision was taken 
to licence Tagamet and Pepcid, 
two powerful indigestion reme- 
dies, for OTC sale. Together 
they represent the most impor- 
tant extension of the OTC mar- 
ket for more than a decade. 


Mersey port decision attacked 


By Ian Hamilton Fazey, 
Northern Correspondent 

Merseyside Development 
Corporation, a government 
agency, has rejected £20m 
plans by Mersey Docks and 
Harbour Company to build a 
floating roll-on. roll-off stage 
and a 27-acre freight terminal 
at Birkenhead to exploit grow- 
ing Irish Sea trade. 

The corporation has instead 
named London & General 
Property the preferred devel- 
oper o£ 50 acres of riverside 
land. It proposes a £74m 
scheme, including a floating 
stage and a 1 5-acre freight ter- 
minal, to be run by an 
unnam ed port operator. Its 
centrepiece is 27 acres of spec- 
ulative long-term property 
development 

Mr Trevor Furlong, chief 
executive of Mersey Docks, 


said: "It is absolutely crazy 
handing over workable water- 
front sites for this sort of 
development It will constrict 
expansion of the Mersey as a 
port. We are growing rapidly 
and successfully. Who knows 
what might be needed in 10 
years' time?” 

A clash is likely, with each 
side mobilising cross-party 
political support 

The dock company can stall 
the development as it owns 
part of the land London & Gen- 
eral wants for its freight 
terminal - which also depends 
on filling in part of Wallasey 
Dock, over which the 
dock company has total con- 
trol. 

Mersey Docks' legal rights 
over part of the waterfront 
involved will enable it to 
charge another operator what- 
ever it likes for its use. 


Mersey Docks had rejected a 
master plan similar to London 
& General’s as impracticable, 
both on its own judgment and 
after taking soundings with 
the ports of Dublin and Belfast, 
the other principal Irish Sea 
trading terminals. 

The crucial piece of land 
involved is called Twelve 
Quays and is opposite Liver- 
pool Pier Head and the Albert 
Dock, the development corpo- 
ration's flagship waterfront 
tourist project in Liverpool. 

The corporation has wanted 
a visually att rac t ive develop- 
ment there and once rejected a 
proposal for a power station at 
the adjacent Morpeth Dock as 
unsuitable, causing the resig- 
nation from its board of Profes- 
sor Patrick Minford, the econo- 
mist. Two previous attempts at 
property development there 
have failed. 


The dock company wants 
Twelve Quays as its freight ter- 
minal. London & General 
wants to make it into a science 
park for emergent technology 
companies, with a student vil- 
lage at the adjoining Morpeth 
Dock and a "festival or mar ket 
style" retail activity. 

London & General has three 
months to finalise plans. Mr 
Furlong said jMersey Docks 
would welcome discussions. 

Mr Peter Kilfoyle, Labour 
MP for Liverpool Walton, said: 
“Merseyside Development Cor- 
poration is irrationaL The dock 
company has revived the Mer- 
sey as a working river and to 
invite a London pr o p erty coin- 
pany to develop a port facility 
on a promise of jam tomorrow 
is beyond belief. I shall be 
questioning the conduct of thfc 
quango in the House of Com- 
mons.” 


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FINANCIAL TIMES 

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

Saturday March 19 1994 


Difficult 

decisions 


Through the fog that obscures 
economic statistics, global eco- 
nomic recovery can now be dis- 
cerned. The US recovery is 
already bathed In brightest day- 
light That in the UK is little more 
obscure. Even the German and 
French recoveries are visible to 
the naked eye. In the case of 
Japan alone does the optimist 
need a telescope. 

In the US, the question now is 
how swiftly monetary policy will 
have to be tightened. The usual 
mistake is to tighten too late. Mr 
Alan Greenspan's slow-moving 
Federal Reserve is more likely to 
err in that direction than in the 
opposite one. 

Last month, the Federal Reserve 
raised short-term rates of interest 
from 3 to just 3'/« per cent It could 
hardly have done less, although 
even that was enough to create an 
earthquake in the bond markets. 
In recent weeks, however, revised 
figures have shown the economy 
grew at an annual rate of 7.5 per 
cent in the last quarter of 1993, 
rather than the 5.9 per cent first 
reported. 

Data since January have also 
been uniformly stronger than 
expected. Retail spending is 
robust, despite a temporary dip in 
construction activity. Industrial 
production appears to be growing 
at an annual rate of IS per cent 
this quarter. The jobless rate, at 
6.5 per cent, is already low. 

AD these statistics have fed Wall 
Street's rumour mill , as did Mr 
Greenspan's surprise meeting 
with President Clinton yesterday. 
It is widely supposed that another 
rise in short-term Interest rates 
will come, maybe as soon as next 
week's meeting of the Federal 
Reserve's open market committee. 
So. indeed, it should. What Mr 
Greenspan meant by his talk of 
pursuing a more “neutral'' mone- 
tary policy is obscure. But since 
short-term real interest rates are 
barely positive even now, US mon- 
etary policy clearly remains 
expansionary, which can hardly 
be justified. 


Opposite position 

If the US needs to tighten, 
France, Germany and Japan are in 
the opposite position. Japan's 
economy remains in recession, but 
its promised fiscal boost has fallen 
hostage to political strife. Mean- 
while, the Bundesbank failed to 
take further action on Thursday, 
though in Germany, too. lower 
short-term interest rates would 
seem fully justified. 

This is true even though evi- 
dence is emerging that France and 
Germany are recovering more 
strongly than expected. Retail 
sales in western Germany were 2 
per cent higher in January than in 
the same month last year, while 
sales in the whole of Germany 


were up 3 per cent, 2 per cent 
higher ihan in December. 

The French National Institute 
for Statistics and Economic 
Studies (INSEE) predicted growth 
of 0.7 per cent in the French econ- 
omy in the first half of 1994, up 
from December’s forecast of 0.5 
per cent Mr Edmond Alphand&ry, 
the French economics minster, 
was buoyant “Everything is going 
in the right direction." he exulted. 
“All our forecasts are being con- 
firmed and, day after day, statis- 
tics prove the government’s sce- 
nario is realistic.'' No less 
realistic, unfortunately, is 
INSEE’s forecast that unemploy- 
ment will rise to 12.7 per cent 

On the turn 

These economies are on the 
turn, but not fast enough to pre- 
vent further increases in unem- 
ployment It is easy to sympathise 
with complaints about European 
monetary policy from American 
officials at the jobs summit of the 
group of seven leading industrial 
countries in Detroit 

Just why the European reces- 
sion has been so prolonged was 
explained by the Bundesbank's 
president Mr Hans Tietmeyer. He 
noted this week that west German 
inflation was set to fall below 2 
per cent But while 2 per cent is 
the Bundesbank's frequently 
stated target it is also lower than 
it has achieved over the past 35 
years, except in the late 1960s and 
again between 1986 and 1988. 

In the US, monetary policy 
should be tightened. In Europe 
and Japan, it should be loosened. 
UK policy-makers, by contrast 
face genuinely difficult dilemmas, 
for interest rates are approaching 
the floor. 

Unemployment has fallen to 
2%m. but remains 9.8 per cent of 
the labour force. Producer prices 
are up only 2.4 per cent over the 
year, excluding food, beverages, 
tobacco and petroleum, but the 
underlying annual increase in 
average earnings has risen 
slightly, from 3 per cent last 
December to 3V< per cent in Janu- 
ary. Retail sales fell 05 per cent in 
February, but are still per cent 
up over the year. UK monetary 
policy may be eased farther, but 
the policymakers do have to be 
cautious. 

In deciding what to do, all the 
monetary authorities must take 
account of the global fall in bond 
prices, which continued this week 
in most markets. Only a brave 
central bank will lower short rates 
when long rates are rising- For all 
that, the rise in long rates does 
not seem driven by worrying fun- 
damentals. With luck, the world's 
monetary authorities will do what 
is needed and the G7, as a whole, 
will quite soon enjoy good strong 
growth, with low inflation. 


A 


senior British Telecom 
executive earning more 
than £100.000 a year 
might not appear to 
.have much in common 
with a deputy store manager at W H 
Smith earning perhaps a fifth that 
amount Hus week, though, both 
looked like being swept aside by the 
same management revolution 
which is brutally transforming com- 
panies across the western worid. 

Job cut announcements have fol- 
lowed a dismally regular pattern 
over the past few years. Arguably 
the significance of the latest devel- 
opments - redundancy for GtK) staff 
at WH Smith and perhaps three 
dozen big earners at BT - is stark 
evidence that both ends of the cor- 
porate hierarchy are now being 
squeezed. 

What BT is doing so noisily is not 
unheard of at the top of other 
organisations. Since its demerger 
last year, ICI has reduced the num- 
ber of its senior managers below 
board level from 1 12 to 90 and 
expects that figure to be lower by 
the end of the year; BP now has 
only 600 managers senior enough to 
be entitled to share options, against 
1,000 three years ago; while BET 
and BAT were cited this week by 
one management expert as busi- 
nesses which have become “lean 
and mean at most levels”. 

This said, the impression remains 
that in the same way that some 
boards in the UK have avoided pay 
restraint by the award of big salary 
increases, many senior managers 
have so far been protected from the 
new realities of the executive 

employment mar- 

ket 

“When pain is 
inflicted, it is only 
natural that the 
people taking the 
decisions will leave 
themselves until 
last," observes 
Rupert Eales- White, principal con- 
sultant at Sundridge Park, the 
Kent-based management training 
centre. 

Judging by a Mori poll published 
recently in the FT, more top manag- 
ers fear that the day of reckoning 
may be at hand. Despite the fall in 
unemployment and signs of eco- 
nomic recovery, 39 per cent of those 
interviewed said they were “more 
anxious" about losing their jobs, 
against 28 per cent a year ago. 

The revolution which may catch 
up with them has been under way 
for almost a decade, especially in 
the US. where radical change tends 
to be resisted less fiercely than in 
Europe. Its nature is far-reaching - 
transforming the way organisations 
do business, the way they are struc- 
tured, and the relationships 
between managers and employees - 
and it is far from over. 

Throughout the 20th century, 
large organisations have been struc- 
tured on the time-hallowed military 
principle of “command and con- 
trol". So has most management lan- 
guage. Top managers at “headquar- 
ters" set the “strategy", and tell 
their senior “subordinates” how to 
implement it. Strategy is then 
translated into "operations" by 
senior managers, who tell their 
“direct reports" in various specialist 
departments - or “functions" - 
what to do. The cascade process 
continues down the corporate hier- 
archy until the message reaches the 
“front line”: factory workers, shop 
assistants and other sales staff. 

The hierarchy’s role in the 
reverse direction has been to pass 
Intelligence back up, level by level, 
from the bottom and from the out- 
side world. As the management 
writer Peter Drucker has said, 
many midd l e maTmgwnent jobs are 


Bosses find it’s a 
snip at the top 

FT writers examine the management 
shake-up transforming western companies 


really about filtering information. 

The command and control model 
has been modified in various ways 
over the decades, as organisations 
became too large and complex to 
manage entirely from the top. But 
since the early 1980s the system has 
broken down under a string of pres- 
sures. 

• Cost Management has become 
unacceptably bloated, not just at 
head office, but also at every level 
between it and the front line. In 
some companies this still means 
more than 10 tiers. 

• Competition/shorter product 
cycles. Hierarchies have slowed 
down companies’ speed of response. 
This did not matter in the 1960s, 
when growth was sure and predict- 
able, and competition mainly lim- 
ited to other companies from the 
same country, or at most the same 
region. Since the late 1970s, compe- 
tition in one industry after another 

has gone rapidly 

international. 

Report by! • Information 

Tim Dickson, technology. This 

i has been a crucial 

Christopher Lorenz influence, render- 

and Lucy Kellaway 

especially since the 
late 1980s. IT has cut the cost of 
automated information transfer and 
processing, making it possible for 
top management to communicate 
cheaply direct with the front line. It 
has also improved immeasurably 
the ability of people at every level 
and in every specialist department 
within an organisation to communi- 
cate across it, without going 
through department heads. 

• Horizontal structures. The pres- 
sure for faster results has forced 
companies to cut the amount of ver- 
tical communication. Whole tiers of 
high-level committees have been 
replaced, usually at much lower 
level, by task forces and project 
teams spanning departmental 
boundaries. This “cross-functional'’ 
drive has been reinforced over the 
past 18 months by the fashion far 
“re-engineering" the processes by 
which organisations do their work 
- at least In the front line. It has 
also encouraged “empowerment", 
the word consultants and academics 
use to describe how companies have 
been trying to give more authority 
to employees lower down the ladder 
who are closer to customers and 
markets. In so doing, of course, they 
effectively by-pass tiers of middle 
managers and. increasingly, senior 
ones as welL 

• Economic recession. All the 
above pressures have been 
reinforced by the slowdown which 
has gripped western economies in 
the early 1990s. 

Many of these factors lie behind 
WH Smith's announcement this 
week that it is reducing the number 
of mangement layers in its shops 
from four to two (thereby requiring 
the 600 job cuts). “Our electronic 
point of sale technology has meant 
many functions traditionally per- 
formed by staff can now be carried 



out by a computer system 
explained a Smith spokesman. The 
market was demanding better cus- 
tomer service from all retailers, 
while there had been a fundamental 
change in the workforce. "People 
want more responsibility," he 
claimed. 

Long before the WH Smith and 
BT announcements were even twin- 
kles in their chief executives’ eyes, 
however, America's GE was demon- 
strating the stark reality or manage- 
rial change. Led - some would say 
frogmarched - by a bombastic new 
chief executive. Jack Welch, the 
company tore up Us structure, 
shape and ways of doing business. 
Between his arrival in 1981 and the 
end of the decade, GE cut the aver- 
age number of management layers 
between Welch and the very front 


line from nine to four. Its headquar- 
ters was slashed from 2,100 people 
to under 1,000. The number of 
senior executives across the com- 
pany was cut, first from 700 to 500, 
and since 1990 by another 100. The 
overall workforce has been almost 
halved, from 404,000 to 220,000. Yet 
GE’s revenues have more than dou- 
bled since Welch arrived, from 
$27bn to $60bm 

For managers still Inside GE, 
though, the real "story" is the revo- 
lution which has occurred in rela- 
tionships across and down the 
organisation. 

Here, the most important concept 
is what used to be described - in 
true military maim er - as "the span 
of control": the number of people 
who reported to each manager. 
When Welch arrived. GE was run- 


ning at a conventional five or six 
per manager. By the late 1930s its 
average had doubled, and is now at 
about 14 - with some units pushing 
25 or more. 

With that change has come a 
transformation in the way employ, 
ees relate to "their" managers, and 
in the nature of the management 
process itself. Since the oneway 
for a single person to “m a nage” two 
dozen people is to allow them more 
independence, management at GE 
has changed from being a "com- 
mand and control" function to om 
of mainly “coaching" people, and - 
providing their type of task allows 
it - unleashing their initiative as 
fully as possible. 

Several GE factories now have 
only one level of management, and 
a tew claim to have none at all - 
just a collection of self-ma n a g ing 
work teams which, within pre- 
scribed limits, make all their own 
decisions, from recruitment to pur- 
chasing and production levels. 

The white collar revolution in the 
UK and the rest of Europe has yet 
to have such Tar-reaching conse- 
quences in most organisations, 
notably at the top. But more compa- 
nies besides BT - Roger Young of 
the Institute of Management cites 
British Gas and Unilever - are 
starting to look at what be calls 
“the big numbers". 

C ost is often the most 
visible pressure, and 
those who run “com- 
mand and control” 
organisations, where 
middle management culling is 
almost complete, appear most vul- 
nerable. 

Over the past five years, for 
example, BT has shed 95,000 people, 
in one year alone losing almost 
6,000 middle managers. It 
has reduced the numbers of 
levels in the company from 12 to 
six. 

Its message is that the old guard, 
who grew up in the Civil Service 
Jobs-for-life days are no longer 
wanted. “Many of them have been 
in the company for the whole of 
their career. They are about ready 
to move on or out," says Peter 
Archer, director of employment 
relations at BT. 

The effect of this new sllmming- 
down at the top is evident at the 
outplacement agencies, which help 
find jobs for the cast-aside manag- 
ers. “We are getting a great many 
more senior executives than two to 
three years ago.” says Raymond 
Hudson of Drake Beam Morin. You 
notice the difference, he says, just 
by walking through the door now 
the DBM offices are filled with 
senior clients each occupying their 
own private rooms, whereas a few 
years ago, middle managers were in 
the majority, an looking for jobs in 
a big open-plan space. 

The ones who can adapt to newly 
streamlined, process-driven struc- 
tures may survive,' those stuck in 
the vertical past will almost cer- 
tainly not The grim truth for many 
is that economic recovery - how- 
ever strong - will not provide a 
solution. Part-time employment 
may be growing and many small 
businesses expanding, but senior 
executives do not necessarily have 
the right skills to take advantage of 
such opportunities. 

As one redundant senior execu- 
tive from the electronics industry 
observed this week: “The market is 
going to get much more aggressive. 
People are no longer just relying on 
hea d hunters and the appointments 
columns of newspapers. They are 
very deliberately targeting compa- 
nies and positions where they think 
their skills can be useful, taking a 
proactive approach." 


Man IN THE News: Rudolf Scharping 


For a policy 
with whiskers 


T en days ago Mr Rudolf 
Scharping. leader of Ger- 
many's opposition Social 
Democratic Party (SPD), 
dragged himself from his sick-bed to 
return, still visibly shivering and 
pale, to the hustings. 

It was the last week of election- 
eering for a new state parliament in 
Lower Saxony, the first poll of no 
fewer than 19 in Germany this year, 
and be was clearly not going to 
miss it for a bad dose of gastric flu. 

This dogged determination pro- 
vided a graphic illustration of the 
way this serious, rather didactic 
career politician is tackling the elec- 
tion marathon ahead. He looked 
dreadful, but his audiences were 
delighted that he was there at all, 
and he managed to tell a few jokes. 

His reward was a good victory for 
the SPD. which gained an absolute 
majority in the state - if only by 
one seat - and saw the rival Chris- 
tian Democratic Union of Chancel- 
lor Helmut Kohl slump to its worst 
result since 1959. 

It was not really a victory for 
Rudolf Scharping. The success was 
due more to the wily campaigning 
of Mr Gerhard Schroder, his 
arch-rival within the SPD. currently 
state premier in Lower Saxony, and 
the man he defeated for the party 
leadership last year. But by turning 
out to give him support, Mr Scharp- 
ins made sure that some of the 
glory rubbed off on himself. 

More importantly, perhaps, be 
managed to underline his success in 
forging a common front in the SPD, 
whose internal divisions and open 
arguments have undermined each 
previous attempt to recapture 
power in Bonn. 

As far as public opinion is con- 
cerned , the election result was an 
essential first step for the SPD on 
the long march towards Its ultimate 


ambition: victory for Scharping 
against Kohl in the general election 
on October 16, and a return to 
power for the party after 12 years in 
the wilderness. For the first time, 
the polls are suggesting that a clear 
majority - more than 70 per cent - 
expects a change in power. 

Yesterday. Mr Scharping took a 
second big step towards that goal 
with the publication of the party’s 
draft government programme. The 
document represents a clear victory 
for his middle-of-the-road agenda: it 
is deliberately cautious, low-key. 
and uorevolutlonary, a studied 
attempt to reconcile the party’s tra- 
ditional commitment to social jus- 
tice, full employment, and strict 
environmental standards, with a 
balanced budget and strict fiscal 
responsibility. It is above all an 
attempt to prove that the party is 
“fit for government". 

“It is not a list of pious wishes, 
but a practical government pro- 
gramme," said Mr G Outer Verheu- 
gen, Mr Scharping's right- hand man 
as party secretary-general. 

When Mr Scharping. then simply 
the state premier in the Rhineland- 
Palatinate, was elected party leader, 
one senior SPD official was asked 
why he was chosen. “Because we 
Germans like someone who is wor- 
thy and safe," he replied. 

“He looks just like a typical scout 
master: trustworthy and sympa- 
thetic." according to one business 
observer. “The question now is: do 
we think a good scout master would 
make a good chancellor?" 

He is not the sort of person who 
sets his audiences alight, or has 
them rolling in the aisles. But he 
has abandoned written tests for his 
speeches, and makes them from a 
handful of notes. He has a remark- 
able memory, according to close 
advisers, and can keep a whole 



mass of figures to his head. 

That may be part of his problem, 
for he still tends to blind his audi- 
ences with science. But he is also 
starting to enjoy his role of the 
modem, youthful challenger - he is 
46 - taunting the old warborse, 63- 
year -old Mr Kohl 

His favourite story of the moment 
tells of a broadcast he had time to 
watch two weeks ago, lying on his 
sick-bed, when the chancellor was 
answering callers' questions. 

“This man rang in to ask him 
what he was doing to promote 
investment in the new multi-media 
super-highways, the leading edge Of 
new technology. But the chancellor 
thought he was talking about the 
autobahn system, and started hang- 
ing on about traffic jams and invest- 
ment in the roads,” Mr Scharping 
told a delighted audience in Lower 
Saxony. “How on earth can you 
trust a man who doesn't know the 
difference?" 

The SET) leader's greatest success 
so fa r has bees is stopping tbe 


squabbling inside his own party. 
“Fot the first time in 12 years, the 
SPD has got a proper party leader," 
according to one rival CDU officiaL 
From the moment he was formally 
elected last June, after a grass-roots 
ballot of the party membership, be 
moved swiftly and methodically to 
Spike potentially divisive issues. 

He rapidly co-opted his other 
potential rival. Mr Oskar Lafon- 
tatoe, by giving him responsibility 
for the whole field of economic and 
financial policy. Between the two of 
them, they have forged a policy 
which combines tax reform, to shift 
the burden from the lower-paid to 
the higher income groups, with 
strict fiscal discipline. Mr Laf on- 
tame has been forced to postpone 
his plans for a headline-catching 
environmental tax reform, to con- 
centrate instead on the absolute pri- 
ority of job creation. Mr Scharping 
does not want to scare off the busi- 
ness lobby. 

By shifting the party to the right, 
be has set his face against a possi- 
ble coalition with the Green party 
after the October election - 
although the latest opinion polls 
suggest they could have a clear 
majority between them. “The SPD 
will not be a partner to a policy 
which suggests petrol prices should 
be raised to DM5 (a fourfold 
increase), or the Bundeswehr 
should be pulled out of Nato," be 
said yesterday, in a firm rejection of 
Green party policies. 

The challenge he now faces is 
keeping his party in line, with Mr 
Kohl ready to exploit the slightest 
sign of dissent The CDU -last month 
launched a big poster campaign, 
featuring a huge grainy close-up of 
the chancellor's grinning, clean- 
shaven face, and the slogan: Tor a 
policy without whiskers." 

It was intended to show that tbe 
neatly bearded Scharping is merely 
peddling the same old policies of a 
tired opposition. It could yet back- 
fire. It certainly shows that the 
chancellor's advisers are taking 
their challenger seriously. 

Quentin Peel 


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A 


s former IRA volunteers. 
Shane O’Doherty and 
Tommy McKearney were 
•ready to kill for their cause 
and were incarcerated for their 
crimes. Now, they are united tn want- 
ing an end to armed struggle but ada- 
mant that the British and Irish gov- 
ernmen ts' Christmas peace initiative 
will not deliver it 

Both men, each leavened by long 
spells in jail, are thoughtful, articu- 
late and confound the caricature of 
block-headed warmongers painted by 
their opponents. Though they have 
left the IRA, their republican sympa- 
thies and same of their contacts sur- 
vive. They dismiss as fanciful sugges- 
tions that 200 years of physical force 
against British “occupation" is about 
to end. 

Neither believes the political initia- 
tive launched by London and Dublin 
- despite high expectations of a his- 
toric breakthrough and the peace 
overtures of republican party Sinn 
F6in - has shifted the mind-set of a 
paramilitary organisation hell-bent on 
a united Ireland. 

Mr O'Doherty was the IRA’s chief 
bomb maker in Londonderry in the 
early 1970s before mounting a letter 
bomb campaign in 1973. His one-man 
war maimed and injured 12 people - 
Mr Reginald Mandling, then Home 
Secretary among them. Though he 
killed nobody he knew he might 

He received SO life sentences at the 
Old Bailey in 1976 and was freed in 
1986. He is now, at 39, a pacifist, and 
has accused the IRA of dishonour and 
cowardice. Last year, he completed an 
En gl i sh degree at D ublin University 
and lives in the city, regularly return- 
ing to the north to see his mother. 

He deeply regrets a past which pro- 
vides him with a special insight into 
the present state of mind of hard-line 
republicans and into what might. lie 
ahead. “It was clear from the day it 

was published that 

the Downing Street 
declaration was 
going nowhere.’' 

The declaration, 
signed by Mr John 
Major and Irish 
prime minister Mr 
Albert Reynolds, 
tried to square the 
aspirations of Northern Ireland’s two 
main communities by offering rights 
of self-determination but guarantee- 
ing Uni onis ts that Northern Ireland 
would remain part ot the UK as long 
as they wished. 

“We've put sticking plasters over 
Irish politics for centuries and once 
again the fundamental issues are 
being ducked. You cannot have two 
governments without proper constitu- 


Weary, wiser, 
the fight goes 


but 
on 


Michael Cassell tests the depth of the IRA's commitment 
to its campaign of violence and asks when it might end 


'We’ve put sticking 
plasters over Irish 
politics for centuries, 
and again the issues 
are being ducked’ 


encies in the north dictating solutions 
to a hardened, embittered double 
minority," says Mr O'Doherty. 

So why should the IRA be able to? 
He concedes some IRA m^ri have now 
reluctantly concluded - heresy until 
recently - that there will eventually 
have to be talks with the enemy. “But 
many others still don’t see the British 
deserving talks, they see them deserv- 
ing bombs, no-warning bombs." The 
impact of recent attacks on the main- 
land suggests, "the probability is that 
a greater part of the campaign will 
move to Britain”. 

Mr McKearney, whose three 
brothers have died in terrorist vio- 
lence, is no more optimistic about an 
end to IRA violence. He came out of 
jail in 1993 after serving is years for 
the murder of a part-time soldier in 
the Ulster Defence Regiment, part of 
the UK army. 

Now he is home again, living with 
his welcoming, elderly parents in a 
neat bungalow on a hillside in South 
Tyrone. He says the Downing Street 
declaration - the very title eaimiatwi 
he says, to make republicans wince - 
has altered nothing. "This is not a 
sea-change. This is exactly where we 
were before. It is the status quo and I 
resent both gove rnments suggesting 
anyone who rejects it must be some 

form Of l unatic " 

He adds: "The 
Downing Street 
document was a 
fait accompli guar- 
anteeing the union 
for ever and a day. 
Forty per cent of 
those in the north 
are annexed into a 
state against their will and don’t want 
a UK connection while 50 per »»nt 
reject Dublin. We need new thinking 
to produce a mutually acceptable 
compromise.” 

But if new thinking is what is 
needed, more violence may be all that 
is on offer. "The question the IRA 
asks itself is how does it keep the 
issue in front of the British until 
proper negotiations take place? 



Armed force: more mortars and bullets may be all the IRA has to offer 


Bombs and bullets will not resolve 
the conflict but have kept the organi- 
sation in the picture." 

Both men quickly expose the yawn- 
ing gap in understanding between 
republicans and British governments 
of all persuasions which has fuelled 
the fight and in 25 years prematurely 
terminated 3.000 lives. 

Ivindnn and Dublin win almost uni- 
versal domestic and international sup- 
port for insisting upon a permanent 
cessation of violence before talks. 
“The ERA is expected to trust perfidi- 
ous Albion? It is. in any case, arro- 
gant to suggest the violence and ter- 
rorism is one-sided, that the IRA is 
the offender and the British are peace- 
makers." says Mr O'Doherty, who 
joined the IRA in protest at the 1972 
Bloody Sunday killing s, when 13 civil- 
ians were shot dead by British troops. 

"Britain tries to hijack the moral 
high ground as thmig h it has nothing 
to answer for. It has injured people on 
the streets, immunised its own 
murderers from prosecution and com- 


mitted terrible injustices. 

"There are three armed struggles in 
Northern Ire land involving the IRA, 
the loyalist paramilitaries and the 
British. We are all covered in blood 
and all carry the responsibility for the 

niPjss and for clear- 

ing it up. The IRA 
will not lay down 
its weaponry and 
put a question- 
mark over the 


The IRA will not lay 
down arms and 

question the moral 

moral value of its value of its Straggle on people, threatens to 

pfMlIffflit AM«I _ _ « - - g 

the basis of this offer* 


tion have been open since the hunger 
strikes. Which is the principle at 
stake that has not already been 
breached?” asks Mr McKearney. 

So what must happen, in the eyes of 
hardline republicans, if the anguish is 
ever to end? The British government 
will first, says Mr O’Doherty. be 
expected to show some humility in a 
declaration repenting for "centuries of 
injustice". At the same time, he 
believes, the IRA will not counte- 
nance an end to armed struggle with- 
out the repatriation and eventual 
release of prisoners to whom it is 
unswervingly loyaL 

The British government has 
insisted there can be no amnesty for 
people who are not po liti cal prisoners 
but simply guilty of vicious crimes. 
According to Mr O'Doherty: "The IRA 
will not have the British talk about a 
peace which entails the continuing 
retention of IRA prisoners. If the pro- 
visionals held hostages in return, 
would the British claim the condi- 
tions existed for a settlement?” 

Both men agree that the big failure 
in republican thinking is to see the 
British government as the only key to 
peace. A million unionists, acknowl- 
edges Mr O Doherty, will not be sup- 
pressed. and they will have to be 
courted in the same way the British 
government must deal with the IRA. 

Unionists have to be reassured that, 
in any new arrangement, their consti- 
tutional rights are guaranteed, says 
Mr McKearney. He suggests “some- 
thing like a confederation or a unitary 
state or a canton which breaks the 
connection with the UK but does not 
necessarily involve parting". Mr O'Do- 
herty has in mind Britain and Ireland 
sharing sovereignty and responsibil- 
ity for the north. 

Such language renders unionists 
apoplectic and London and Dublin 
unmoved. The governments insist on 
a ceasefire, underwrite the democratic 

will of the majority 

and restate their 
commitment to a 
peace initiative 
which, in trying to 
be all things to all 


struggle and the 
sacrifices of its vol- 
unteers on the 
basis of the deal on offer.” 

Both men believe the British gov- 
ernment will swing on the hook of 
hypocrisy in its refusal to talk. “They 
talked to the IRA during two cease- 
fires in 1972 and 1974, they have been 
talking again in the last three years 
and they talked during and after the 
Warrington bombs." says Mr O'Do- 
herty. 

"We all know lines of comm uni ca- 


satisfy none. 

The history of 
Northern Ireland, 
however, is replete with surprising 
ironies as well as tragedy. Both Mr 
McKearney and Mr O Doherty spent 
several years in the mbw jail as the 
loyalist paramilitaries they were 
plarig ari to kill. They tnTkari and Tnhrprf 
and came to see other side’s point of 
view. They even struck up friend- 
ships. 

The trick is to repeat it in the world 
outside. 


Judy Dempsey explains why hopes are rising for peace in Bosnia 

Endgame at the beginning 


Bosn ia ■Hwregw H— : the battle of the boundaries 


HUNGARY 


SLAVONIA 


vojwoowa 



iso;- 


BSflftM , ncmana ^ ^ ^ACXRfATC S&T\y^ o z* o$ : 


A world of 
difference in 
a grain of rice 

Japan thinks its rice is nicest, even 
when scarce, says Emiko Terazono 


N ever before in the 
war in the former 
Yugoslavia has the 
combination of car- 
rots and sticks been so finely 
balanced. Never before have 
military strategists and diplo- 
mats believed that the combi- 
nation could help tip the bal- 
ance in favour of peace. . 

“For the first time, I am 
hopefuL But it's not yet the 
time to put out the flags yet. 
We still have a lot to do." said 
Mr Charles Dick, head of the 
Conflict Studies Research Cen- 
tre based at Sandhurst Military 
Academy in the UK 
Some of the building blocks 
for peace were put in place yes- 
terday in Washington when 
President Bill Clinton presided 
over the signing of an agree- 
ment between Bosnian Croats 
and Bosnian Moslems. 

The accord, forged by Mr 
Charles Redmon, the US spe- 
cial envoy to the former Yugo- 
slavia. involves the Bosnian 
Croats and Moslems creating a 
power-sharing federation in 
about a third of Bosnia's terri- 
tory. Observers believe it is 
only a matter of time before 
the federation will form a loose 
union with Croatia. 

President Fraiyo Tudjman of 
Croatia decided to sign up to 
deal for several reasons: Ger- 
many and the US had threat- 
ened to impose sanctions on 
Croatia; Croatian-backed forces 
in western Hercegovina, east- 
ern Bosnia, had lost ground to 
Bosnian Moslem forces; a 
growing opposition to the war 
was emerging within Croatia. 
Finally, in return for peace, the 
US and Germany had held out 
prospects of financial assis- 
tance for rebuilding Croatia’s 
economy. Mr Tudjman would 
have found it difficult to resist 


such an even division of car- 
rots and sticks. . 

The predominantly Moslem 
Bosnian government signed an 
as well. Mr Haris Silajdzic. 
prime minister, believes Wash- 
ington will supply funds to 
underpin the economic viabil- 
ity of the federation, as well as 
preserving its territorial integ- 
rity. 

"This federation is a kind of 
marriage of convenience. Nei- 
ther side has won the war. 
They believe peace is in their 
interests," said Mr Dick. 

Implementation of the deal 
will require three things: sub- 
stantial extra numbers of 
United Nations peacekeepers, 
above the 7,000 in place; con- 
sensus on the federation's 
boundaries by the Croats and 
Moslems; and, crucially, agree- 
ment to any redefined bound- 
aries by tbe third participants 
in the war. the Bosnian Serbs. 

This latter requirement 
could undermine the deal 
fatally, because the Bosnian 
Serbs and their patron Presi- 
dent Slobodan Milosevic of 
Serbia control 70 per cent of 
Bosnia's territory and can con- 
solidate their grip over the 
gains. A Pentagon official said: 
“The administration is giving 
the semblance of preserving 
Bosnia. But we know we are 
witnessing a sophisticated divi- 
sion of the Bosnian republic 
between Croatia and Serbia." 

Mr Redmon, together with 
Mr Vitaly Churkin, Russia's 
special envoy to the region, 
now have to turn their atten- 


tion to wooing Serbia, again 
with a combination of carrots 
and sticks. 

The threat of air strikes, 
which forced Bosnian Serbs to 
withdraw their heavy weapons 
from around the besieged city 
of Sarajevo, remains a power- 
ful stick. 

But increasingly, US and 
Russian officials are be ginnin g 
to talk about turning the stick 
of' sanctions against the Ser- 
bian state - in place since 
June 1992 - into a carrot by 
promising gradually to lift 
them. Mr Stephen Oxman. the 
deputy US secretary of state, 
this week said any moves to 
ease sanctions would be linked 


to "positive steps by the Serbs 
in tiie negotiating process". 
The ball Is now in Serbia's 
court. 

After waging a two-year war 
in the former Yugoslavia to 
defend Serbs living outside 
Serbia, Mr Milosevic must 
decide if now is the time to sue 
for peace even if it means turn- 
ing his back on some of the 
Serbs outside Serbia. 

Yesterday’s Washington 
agreement helps him. He could 
argue that, since the Bosnian 
Croat/Moslem agreement paves 
the way for an eventual cre- 
ation of a Greater Croatia, the 
Bosnian Serbs in eastern Bos- 
nia should be allowed to form a 


similar loose union with Serbia 
proper. 

Such a union would require 
the Bosnian Serbs to give up 
some of the territory they hold 
in Bosnia, as well as to reach 
agreement on the status of the 
Moslem-held enclaves of Gor- 
azde, Srbrenica and Zepa in 
eastern Bosnia. Mr Milosevic 
might be able to persuade the 
Bosnian Serbs to cede some 
land to the Moslems and 
thereby convince the US to 
accept a closer relationship 
between eastern Bosnia and 
Serbia. The price for any con- 
cessions would be the removal 
of sanctions. 

But compromises in eastern 
Bosnia constitute only one ele- 
ment of a potential overall set- 
tlement in the region. The 
linchpin is a peace treaty 
between Croatia and Serbia. 
This, in turn, would be possi- 
ble if Belgrade and Zagreb 
could agree on the status of 
Krajina, in southwestern Croa- 
tia. 

Nearly 350,000 Serbs live in 
Krajina on rugged limestone 
land which has no economic 
worth. But its strategic loca- 
tion is vital: it splits Croatia in 
half. Reasserting control over 
the territory is crucial for Mr 
Tudjman. Without it, Croatia 
remains divided. The question 
is whether Mr Milosevic is pre- 
pared to turn his back an the 
Krajina Serbs whom he used in 
1991 to foment war in Croatia. 

“At one point, both Croatia 
and Serbia will have to trade 
land for peace." said a UN offi- 


cial involved in the Geneva 
peace talks on the former 
Yugoslavia. 

A deal would Involve Mr 
Tudjman granting extensive 
autonomy to the nationalist 
Krajina Serbs to persuade 
them to stay in Croatia. In 
return, he he might have to 
give up a swathe of Serb-held 
territory in Slavonia, eastern 
Croatia, which forms a natural 
link to Serbia proper. 

Mr Tudjman might be able to 
justify this compromise to the 
Croats on the grounds that he 
would have won control of 
Krajina, and a potentially 
enlarged republic through an 
alliance with the new federa- 
tion of Bosnian Croats and 
Moslems. Such an arrangement 
could be rewarded with the 
carrot of economic aid from 
the west 

S imilarly, by turning his 
back on Krajina, Mr 
Milosevic could turn 
concession into victory 
because sanctions would grad- 
ually be lifted and his fellow 
Serbs in eastern Croatia and 
eastern Bosnia would be placed 
under the protection of Serbia. 

“You can see the shape of 
this compromise,” a UN official 
said, adding that there were 
many imponderables, includ- 
ing the question of whether the 
people of Bosnia could ever 
live together again after such 
brutality. 

"What we are seeing is the 
emergence of the endgame in 
which Croatia and Serbia, in a 
strange and tragic twist of his- 
tory, will get what they origi- 
nally set out to attain: a 
Greater Croatia and a Greater 
Serbia, with the Moslems des- 
tined to live with Croatia, the 
lesser of the two devils." 


D on't worry, it’s Jap- 
anese rice." The 
sushi chef behind 
the white cedar 
counter gave a reassuring 
smile as be placed a slice of 
tuna on a small ball of rice. 
"We’ve stocked up so we won’t 
have to use foreign rice for a 
while." he said. 

Japan is in the middle of a 
rice crisis. Last year’s unusu- 
ally cold summer and a spate 
of typhoons resulted in the 
worst harvest in postwar his- 
tory. Japan is not dne offi- 
cially to open its rice market 
to imports, as agreed under 
the General Agreement on 
Tariffs and Trade, until next 
year. But the government esti- 
mates 2.2m tonnes will have to 
be Imported this year. 

Bureaucratic delays have 
meant stores have yet to 
receive such emergency sup- 
plies. But although bags of 
grain have gone from tbe 
supermarket shelves, many 
restaurateurs and retailers 
have managed to squirrel 
away rice supplies. 

The sushi chef looked 
affronted at the snggestion 
that tiie balls of rice he pot on 
an assorted raw fish platter 
were made from a blend of 
emergency imports and home 
grown rice. 

"Some snshi 
shops without 
domestic sup- 
ply routes like 
mine have 
closed,” he 
said. It would 
be impossible 
to make sushi 
with a blend of 
Californian and 
Thai rice, he 
said, because 
rice accounts 
for 70 per cent 
of the dish’s 
taste. 

Such is 
Japan’s sensi- 
tivity about 
rice that Mr Eijiro Hata, the 
agricultural minister, had to 
apologise to the public this 
month for the breakdown in 
the state-controlled rice mar- 
ket He announced the govern- 
ment would speed up the sale 
of an additional 30,000 tonnes 
of domestic rice to wholesal- 
ers. But he risked exacerbat- 
ing the ire of the Japanese by 
trying to force retailers and 
wholesalers to blend all rice 
with at least some foreign 
imports. 

In parliament Mr Morihiro 
Hosokawa, tbe prime minister, 
has been blamed by the oppo- 
sition Liberal Democratic 
party for foiling to avert the 
shortage. 

The political row has high- 
lighted the sanctity of home- 
grown rice, the cultivation and 
harvesting of which remain at 
the roots of Japanese tradi- 
tions and rituals. Whereas air- 
craft have long beat used to 
sow rice seeds in the US, until 
recently rice seedlings La 
Japan were hand planted. 
Rice-planting festivals are still 
held in June, including at the 
imperial palace in Tokyo, 
where a barefooted Emperor 
AMhito plants seedlings in bis 
private rice paddy. 

In autumn, harvested rice is 
offered to the gods, and sushi 
chefs refer to tbeir rice as 
“sbari", a shortened version 
ofSanskrit sarira, meaning, 
“the bones of Buddha”. 

But the attachment to home- 
grown rice is not just spiri- 
tual. Consumers prefer Japa- 
nese rice because it is 
regarded as better tasting and 
stickier than foreign imports. 


The Japanese like a sweeter 
and heavier grain that can, for 
instance, be moulded into 
balls. 

Some are put off by tbe sight 
of long foreign grains. “I know 
I shouldn't be prejudiced and 
at least I should try it bnt I 
feel more comfortable baying 
and eating domestic rice," said 
Mrs Mieko Ichikawa, a 40- 
year-old housewife. 

Among the old, with war- 
time memories, the latest 
shortages have revived a 
hoarding instinct: “Everyone 
who has experienced the war 
keeps extra bags of rice just in 
case," said 78-year-old Mrs 
Kyoko Kimura. At the same 
time, some consumer groups 
have claimed foreign rice may 
be unsafe because of the use of 
post-harvest fungicides and 
pesticides. Press reports of 
dead mice, cockroaches, or cig- 
arette butts found in foreign 
rice have added to such fears. 

The high demand for home- 
grown rice together with the 
restricted supply have opened 
opportunities for retailers - as 
well as racketeers - to 
increase profit margins. Of the 
7.8m tonnes of rice harvested 
last autumn, some 2m to 3m 
tonnes are estimated to have 
flowed in to the black mar- 
ket's compli- 
cated distribu- 
tion web and 
to have been 
hoarded by 
wholesalers 
and retailers. A 
black market tn 
rice is not new, 
but this year It 
has been partic- 
ularly buoyant 
A 10 kilo- 
gramme bag of 
prime grade 
rice which cost 
Y6.000 on the 
black market 
last year, has 
nearly doubled 
in price while 
some retailers are only selling 
to favoured customers. 

The government is belatedly 
trying to calm the market. 
Leading cabinet members, 
many of whom had belonged 
to the lobby that opposed the 
opening of the Japanese rice 
market during the Uruguay 
Round of trade talks, recently 
tucked into foreign rice in 
front of television cameras to 
try to persuade the country 
that it was at least edible. 

Bnt emergency imports of 
blended rice bave been hard to 
obtain in recent weeks. Much 
has been delayed in the ports 
due to vigorous and tim*con- 
s tuning customs inspections 
by officials unused to rice 
being imported. Consumers 
may have to wait another 
mouth for a steady flow of 
blended rice to hit the shops. 

Even then it is far from clear 
if many will eat it. Domestic 
fanners have tried to take 
advantage of the public debate 
over rice imports to stress the 
superiority of the home grown 
product and re-emphasise 
their role as keepers of Japa- 
nese culture. 

However, such attempts to 
instil in the younger genera- 
tion tbe rice culture revered 
by tbeir forebears may have 
fallen on deaf ears. Tastes are 
changing and for many mod- 
ern Japanese, rice has become 
just another commodity amid 
the diversity of foods avail- 
able. Sitting along the sushi 
counter, a mother tried to urge 
her sulking son to eat the mor- 
sels of raw prawns and rice In 
front of him. "I want McDon- 
ald’s,” he walled. 



Malaysian affair: 
insensitivity and 
mistaken beliefs 


From Afr Jeffrey Lenton. 

Sir. As managing and mar- 
keting director of a small UK 

consulting company which 
exports technology- and ser- 
vices around the world ^includ- 
ing south-east Asia). I have fol- 
lowed the UK press coverage of 
the Malaysian Pergau Dam 
affair with a passionate mter- 


s to be amazed at 
st’s) ability to 
effect, pass judg- 
est of the world’s 
in ess cultures. In 
; demand a high 
sitivity and con- 
, go hand-in-hand 
f life, but this is 
in any interna- 
ss negotiations, 
ment, whether 
can (as proven 
is revelations of 
am affair) result 
and long lasting 
temational busi- 

L c. 

Heath, appearing 


on a recent "Frost on Sunday” 
interview, succinctly summed 
up the situation: “With free- 
dom comes responsibility” - a 
profound and accurate com- 
ment which applies equally to 
our valued free press as It does 
to society as a whole. 

Mr Andrew Neil’s Sunday 
Times coverage of the Pergau 
Dam affair has certainly 
increased the reader's aware- 
ness and has opened up a 
wound in the side of British 
politicians. 

Meanwhile, the rest of the 
world is rubbing its hands in 
eager anticipation of securing 
business which could have 
come to UK pic. 

If UK companies are to com- 
pete for and secure interna- 
tional business, helping 
exports, increasing employ- 
ment opportunities and gener- 
ating profits (the tax on which 
helps to support our national 
operating overheads - irrespec- 
tive of the ruling political 
party). UK pic needs construe- 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 

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


tive not destructive support 
from all quarters - including 
the press. 

The effects resulting from 
the ’handling of this affair have 
not been restricted to Malay- 
sia; already other business 
associates of ours in SE Asia 
are concerned that Britain’s 
free press can say what it likes 
without being concerned about 
trade repercussions. 

The point is that our sensi- 
tive existing and potential 
business customers perceive it 
this way and this introduces 
yet another obstacle in secur- 
ing new export business. 
Jeffrey Lenton, 

Management Sciences (UK). 

5 The Manorgrove Centre. 
Vicarage Farm Road, 

Fengate, 

Peterborough PEI SUE 

From Mr A Kadir Shariff, 

Sir. Dr Mahathir Bln Moham- 
ad's letter (March 17) clearly 
puts the record straight on the 
Pergau Dam project. A soft 
loan granted by the British 
government to Malaysia has 


been misinterpreted by some 
sections of the press as an out- 
right grant at the expense of 
the British public. The failure 
of the British government to 
intervene and to tell the truth 
has aggravated the situation. 

Malaysia may be harsh in its 
action on the trade embargo. 
But what alternative course is 
there for a small nation like 
Malaysia whose views are not 
heard and published in the 
so-called free press? The press 
in Britain should also learn to 
tell the truth. 

A Kadir Shariff, 

19 Montpelier Square, 

London SWT 1JR 

From Mr Sikander Lanf. 

Sir. Your leader, "Malaysian 
moves" (March IS), accuses 
that country’s government of 
attempting to rein in the free- 
dom of the British press. 

There is a mistaken belief 
nurtured by the western media 
that any reporting against the 
government of the day of for- 
mer colonies goes down well 
with the natives. 


Alas, were it so simple. 

While welcoming any free- 
dom of expression, the public 
of such countries also recalls 
the disdain which was shown 
by the same western media 
during their freedom struggle 
and their cynicism Is only 
heightened by actions such as 
Star TV’s desire to abandon 
the BBC World Service televi- 
sion news to China in its 
higher commercial interest 
(“Murdoch plans to axe BBC 
news from China satellite ser- 
vice", March IS). 

On top of the British media 
tolerating such double stan- 
dards, your suggestion to 
invoke an appeal to the EU and 
General Agreement on Tariffs 
and Trade to teach Malaysia a 
lesson belittles the traditions 
of a once great trading nation. 
For it is about trade is it not? 
Sikander Latit 
72 Kingston House South, 
Enmsmore Garden, 

London SWT ING 

From Ms Jessica von Boeventer. 

Sir. The continuing furore 


about the Pergau Dam still 
comes from tbe original misun- 
derstanding of where the 
money for the project came 
from. The Malaysians do not 
know that the UK has specific 
guidelines and rules which 
govern our Overseas Develop- 
ment Administration budget, 
and that the question of 
whether these monies should 
have been used for Pergau is 
what has caused so much 
upset 

If Sir Tim Lankester, as head 
of the ODA. advised Baroness 
Chalker, minister for overseas 
development, not to fund a 
dam which he said would not 
be of benefit to the poor and 
would be an abuse of ODA 
funds, then it was , in my opin- 
ion. time to refer the project to 
the Department of Trade and 
Industry and allow the tiny, 
frozen £l-8bn aid budget to be 
used more for the use of uplift- 
ing the poorest people in the 
poorest countries. 

If we untie aid and trade, 
then there will be no more Per- 
gau Hams from a small depart- 


ment which can then get on 
more effectively with its genu- 
ine raison d'etre. 

Jessica von Boeventer, 
Frenchgrass House, 

9 St Margaret s Villas. 

Bradford on Avon. 

Wiltshire BA15 1DU 

From Mr Karl A Ziegler. 

Sir, Aside from his personal 
attacks on Andrew Neil and 
his cri-de-coeur of a "northern” 
bias against non-whites. Dr 
Mahathir's now famous letter 
does point out that Britain's 
soft loans and aid-trade provi- 
sions are only marginally more 
attractive than others avail- 
able to Third World rulers. 
How usefliL 

The implication is clear. 
Regardless of the innate appro- 
priateness of projects, on finan- 
cial, environmental or social 
grounds, the north continues 
to sell emerging economies a 
bill of goods, which are primar- 
ily in the north's financial 
self-interest. 

Should the soft financing be 
particularly attractive and pos- 
sibly allow leeway for front- 
end overrides, payable to recip- 
ient country decision-makers, 
even totally inappropriate pro- 
jects have a greater chance of 
acceptance. 

Through Gatt, the OECD, the 


EU and the multilateral agen- 
cies, greater monitoring and 
disciplines are needed, to 
ensure that a level playing 
field is created for only truly 
viable projects to proceed. 
Should dams silt up before 
debt servicing is complete, it is 
generally from the hide of a 
nation's poorest citizens that 
final debt servicing is pro- 
vided. 

In such an environment, 
world business leaders must 
know that follow-up contracts 
become less likely. 

Karl A Ziegler, 
director, 

Centre for Accountability 
and Debt Relief, 

6 Bradbrook House. 

Studio Place, Kxrmertan Street, 
London SWiX SEL 

From Mr Adam Wake 

Sir. Judging by the rather 
cloudy letter from the Malay- 
sian prime minister it would 
seem that Dr Mahathir 
Mohamad is suffering under 
the somewhat undesirable bur- 
den that is commonly referred 
to as an inferiority complex. In 
line with the times, perhaps we 
could offer an even softer loan 
for a course of psychotherapy? 
Adam Wake. 

28 Gunterstone Road.- 
London W14 9BU ' 




FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 


COMPANY NEWS: UK 


£6m fall after losses on disposal of electro-optics operations 


Vinten hit by exceptional costs 


By Paul Taylor 


Vinten, the restructured 
camera mountings and surveil- 
lance systems group, yesterday 
reported a decline in pre-tax 
profits In 1993 to £4.21m after 
exceptional charges totalling 
£l0.4m - mostly related to the 
disposal of the lossmaking elec- 
tro-optics operations. 

The fall in pre-tax profits 
from £10. 2m in 1992 came 
despite operating profits up 38 
per cent to £l5.6m. This 
reflected strong growth in the 
core broadcast systems and 
photographic businesses, 
acquisitions and exchange rate 
movements, which added 
about £2m to profits. 

Turnover grew by 21 per cent 
to £93. 4m f£77.3m), including a 
£18.1m contribution from 
acquisitions and £J.5Sm from 
discontinued operations. Earn- 
ings per share fell to 6.lp 
<21.7p). Nevertheless, a 5.7p 
final dividend is recommended 
making a total or 7-8p (7p). 

The broadcast systems divi- 
sion, strengthened by the 
acquisitions of Internet Video- 
communications in the UK and 
Total Spectrum Manufacturing 
in the US. reported trading 
profits up 42 per cent to £4.49m 
on turnover which grew by 39 


£ 16 m loss 
for Allied 
Leisure 


By Ton Burt 


Shares in Allied Leisure fell 
I6p to 27p yesterday after the 
nightclub and ten-pin bowling 
company announced interim 
pre-tax losses of £16. Im and a 
board shake-out 

The company blamed the 
deficit, struck against a £l-2m 
profit last time, on restructur- 
ing provisions of £Z4-2m and 
large asset write-downs. 

As part of the upheaval Mr 
Richard Carr, chief executive, 
has agreed to resign and two 
other directors are leaving the 
main board to concentrate on 
operational affairs. 

Their departure follows a 72 
per cent decline in operating 
profits to £592,000 in the 24 
weeks to January 2. 

The operating figure, 
achieved on fiat turnover of 
£11.2tn (£11. 5m), was also 
depleted by £300,000 in oneoff 
payments to out-going direc- 
tors. including £180,000 pay- 
able to Mr Carr. 

Mr Damien Harte, appointed 
finance director last Novem- 
ber, said: “We had to take 
action. The company was suf- 
fering from a combination of 
problems which threatened its 
ultimate survival." 

Determined to safeguard 
Allied’s future, he initiated the 
restructuring, which included 
£9. 7m in asset write-downs, 
£3m to cover the disposal of 
lossmaking operations and a 
farther £l.5ra for Anther reor- 
ganisation. The company has 
also decided to sell its Liver- 
pool bowling alley and close 
fear clubs and bars in Dundee 
and Bedford, which reported a 
combined trading loss of 
£941,000. 

Market uncertainty 
increased after the company 
admitted it was in breach of 
its banking covenants over the 
write-downs and provisions. 

Mr Harte. however, said the 
group’s bankers remained sup- 
portive and had agreed to a 
three-month moratorium on 
capital repayments of its 
£l4.9m debt. “We expect to be 
able to present some struc- 
tural solutions to our lenders 
and shareholders by the mid- 
dle of the year 

Losses per share emerged at 
25.2p (2.92p earnings) and the 
interim dividend is passed - 
lp was paid previously. 

The company also said Mr 
Csut had sold 1.5m shares yes- 1 
terday - reducing his stake to 
5.06 per cent - but retained 
full confidence in the board. 


per cent to £33£m. 

In the photographic busi- 
ness, which now accounts for 
more than 50 per cent of group 
profits, Gruppo Manfrotto 
based in Italy had another 
strong year. Trading profits 
increased by 40 per cent to 
£&53m on turnover up 53 per 
cent to £35 -9 m. 

W Vinten also performed 
well lifting the surveillance 
systems profits by 28 per cent 
to £2l.89m despite a 4 per cent 
decline in turnover to £20.lm. 

Despite spending £14-2m on 
acquisitions - excluding the 
TSM acquisition which was 
fended with shares - year end 
net debt increased by just 
£2.7m to £11.410, equivalent to 
gearing of 44JJ per cent 



• COMMENT 

Yesterday’s 6p rise in Vlnten's 
shares to 520p was well 
deserved and reflected market 
satisfaction with the group’s 
underlying performance. The 
exit from the lossmaking 
defence-related electro-optical 
businesses In September was 
welcome. Meanwhile Vinten 
has made astute acquisitions 
in areas it knows well and 
which should have good 
growth prospects. The UK and 
Italian manufacturing 





operations should continue to 
benefit from soft currencies 
helping the group further 
expand Its US and east Asia 
sales which already account 
for 62 per cent of the total. 


Shandwick in £18.9m rights 
issue to cut borrowings 


By Simon Davies 


Shandwick, the public 
relations company, is to raise 
£ 18.9m from a rights issue to 
reduce bank borrowings. 

The cash call had been long- 
expected, and the share price 
reacted favourably to the news, 
rising 3%p to dose at 59V4p. 

Mr Dermot McNulty, chief 
operating officer, said that 
“people will now be able to 
focus on our business, and not 
our financials". 

The company is proposing 
the issue on a l-for-2 basis, 
pitched at 45p, which is a 20 
per cent discount to Thurs- 
day’s closing share price. 
Shandwick will use £l&9m of 
fee proceeds to reduce its £7lm 
bank debt, directors stated. 

Lending margins on Shand- 


wick's debt were cut when it 
renegotiated banking facilities 
in January, and the banks 
have agreed a further reduc- 
tion, upon repayment of £l5m. 

These tending marg in* will 

have been reduced by about 
0.75 percentage points in three 
months, and brokers estimate 
that debt servicing will be 
reduced by about £1.5m per 
annum, following the rights 
Issue. Net debt will remain at 
about £48m following the 
rights issue. 

Shandwick is not consider- 
ing acquisitions, according to 
Mr McNulty, but he added: 
“We are now beginning to see 
encouraging signs, in terms of 
trading in the US and UK. and 
we would like to be in a posi- 
tion to look at business oppor- 
tunities." 


Goal Petroleum falls 27% 


By Peggy HoHmger 


Lower production and higher 
tax provisions bit net profits at 
Goal Petroleum, the North Sea 
oil and gas explorer which yes- 
terday announced a 27 per cent 
drop to £5.1m for the year to 
December 3L 

Turnover fell by 4 per cent to 
£42.4m, due to maintenance 
work on two fields - Buchan 
and Wytch Farm. Tax rose 40 
per cent to £2.8m because of 
changes to Petroleum Revenue 
Tax. 

Mr David Boyd, managing 
director, said Goal was confi- 
dent of a recovery in produc- 


tion. He was particularly opti- 
mistic given the 5 per cent rise 
In proven and probable 
reserves to 4L6m barrels of oil 
equivalent, following recent 
acquisitions. 

The group was keeping an 
eye on opportunities abroad, 
Mr Boyd said. Although Goal 
remained committed to the 
North Sea. eventually it 
would “have to go further 
afield’’. Areas of particular 
interest were Venezuela and 
Australia. 

Goal spent some £15m on 
exploration, largely to appraise 
previous discoveries. 

The group expected to spend 


about half that this year, with 
more investment in developing 
assets. “We are reflecting 
industry pressures," said Mr 
Boyd. “Money is being spent 
on investments that are 
likely to make earlier returns.” 
Such trends become more com- 
mon at times of weak oil 
prices. 

Goal finished the year with 
net debt of £13m, or 14 per cent 
of shareholders' funds. This 
compared with net debt of 
£ia.7m and gearing of 31 per 
cent 

The dividend was increased 
from 1.4p to 1.45p. Earnings fell 
from 5.23p to 3-79p. 


0.11% acceptance 
for GKN offer 


GKN, the engineering and 
Industrial services group, yes- 
terday said investors holding 
0.11 per cent of Westland's 
ordinary shares had accepted 
its offer for the helicopter man- 
ufacturer. 

It has offered 290p per ordi- 
nary and preferred share. 
354.8p for each convertible pre- 
ferred share and 2Q8.3p for 
each warrant. 

Extending its closing date to 
April 5, the group - which con- 
trols 45 per cent of Westland - 
said it had received 0.02 per 
cent of the convertible prefer- 
ence shares and 0.07 per 
cent take up on its warrant 
offer. 


Christmas sales lift 
Fortnum & Mason 


By Peggy Hoflinger 


Fortnum & Mason food fans 
helped the London department 
store to an increase in sales 
and pre-tax profits for the 28 
weeks ended January 22 1994. 

A better-than -expected rise 
in Christmas catalogue sales - 
the wishbook of the famous 
Fortn urn’s hamper - helped 
boost operating profits by 21 
per cent to £1.4m, on sales 10 
per cent ahead to £17.2m. A 
drop In interest receivable, 
however, held back the 
advance at the pre-tax level 
and left the figure at £1.6m. 


compared with £15m. 

Earnings per share rose from 
235p to 249p, while the the net 
interim dividend was main- 
tained at 86p. 

Fortnum ‘s, which is 89 per 
cent owned by George Weston 
Holdings, had net cash of £7m. 
This would fall after the pur- 
chase of a long leasehold for 
£L75m. 

The company warned that 
the outlook for the second half 
remained uncertain. Trading 
continued to be buoyant, but 
the vast majority of Fortnum’s 
profits were traditionally maria 
in the first half. 


McCarthy & Stone calls for £15.5m 
and forecasts reduced interim losses 


By Andrew Taylor, 
Construction Correspondent 


McCarthy & Stone. Britain’s 
biggest builder of retirement 
homes, yesterday announced a 
£l5.5m rights issue to reduce 
borrowings and buy land. 

The company also is propos- 
ing to cancel £2, 63m of divi- 
dend arrears owed to cumula- 
tive preference shareholders 
who are being offered a scrip 
issue of one new preference 
share for every 5.509 preference 
shares already held. 

McCarthy said that in the 
present circumstances it would 
be unlikely “to pay off these 
arrears for some considerable 
time” 


The... rights issue of 28m 
shares te-bn^he basis of 2-for-5 


at 58p. The shares rose lp to 
73p following the announce- 
ment. 

McCarthy, which Is experien- 
cing an upturn in demand, 
expects losses before tax and 
exceptional for the six months 
to end-Fehruary to fail from 
£S.7tn to no more than £1 .3m. 
'Hie average price for Us homes 
has risen from £56.600 to 
£64,500 during the past 12 
months. 

McCarthy said it intended to 
resume payments of preference 
dividends following publication 
of results for the year to 
August 31, depending on a far- 
ther revision of banking facul- 
ties. 

The issue is underwritten by 
NatWest Markets Corporate 
Finance. 


• COMMENT 

This looks like a farther refi- 
nancing given the admission 
that the company would be 
unable to pay off arrears with- 
out a scrip issue. An early 
resumption of preference divi- 
dends, moreover, looks depen- 
dent on a successful rights. On 
the other hand, most of the 
group’s competitors have dis- 
appeared from a market which 
will command higher margins 
than general housebuilding as 
it recovers. At the rights issue 
price the group remains on a p/ 
e of 25 on 1994-95 pre-tax prof- 
its of £ A8m, which may not be 
announced for 18 months. 
Shareholders probably have Lit- 
tle choice other than to take up 
their rights but should not buy 
in the market. 


McCarthy & Stone 


Share price (penca] 

85 


75 1 - - 



Jonathan 
Agnew gets 
£600,000 
handshake 


Demand in developing 
markets assists Molins 


By Oavtd Biacfcwefl 


By Norma Cohen, 
Investments Correspondent 


Ttevar Hunphna 

Malcolm Baggott, chief executive (left) and Humphrey Wood, 
chairman: all-round growth helped operating profits rise 38% 


Pre-tax profits of about £16.5m 
look possible this year generat- 
ing earnings of 33.4p. The 
shares are trading on a for- 
ward multiple of 15.6 and look 
moderately cheap. 


Shandwick is paying a 0.43p 
interim dividend in September 
and a final of 0B7p, the first 
pay-out since 1991. 


• COMMENT 

It was only a question of time 
before Shandwick came back 
to the market, and while the 
rights issue will dilute earn- 
ings per share over the next 
two years, it puts the company 
back on a firm fmanrifll foot- 
ing. Given the pricing of the 
rights shares, a high take-up is 
certain. Brokers expect pre-tax 
profits of £7.75m in 1993-94, put- 
ting the shares on a p/e of 13.6, 
allowing for the rights. Given 
the company's operational 
gearing and improving busi- 
ness environment, there 
should be longer-term upside 
in the share price. 


Mr Jonathan Agnew, former 
chief executive of Eleinwort 
Benson, the merchant bank, 
received a £600,000 ex-gratia 
payment “following the termi- 
nation of his employment”, 
according to the company’s 
annua! report 

Mr Agnew announced last 
May that he intended to resign 
in the summer and Lord Rock- 
ley, KB chairman, said the 
company would look to 
replace him externally. 

In explaining the payment 
to Mr Agnew - which exceeds 
the total salary and perfor- 
mance-related pay earned by 
KB’s chairmen in 1993 - Mr 
Peter Chnrdiill-Coleman, com- 
pany secretary, said the sum 
was agreed by a compensation 
committee consisting of non- 
executive directors. It does not 
represent a sum due under a 
long-term employment con- 
tract 

.“None of our directors is on 
a long-term contract,” Mr 
Chorchill-Coleman said. Con- 
tracts for directors at KB are 
typically three months long. 

Meanwhile, a £25,000 pay- 
ment was made to the bank’s 
pension plan to enhance the 
pension of Mr David Peake, 
the former chairman who 
retired from fall-time execu- 
tive duties in April 1993. He 
remains a non-executive direc- 
tor. 

The annual report also dis- 
closes that Lord Rockley 
earned £303,000 in perfor- 
mance-related pay in addition 
to his salary. The chairmen’s 
salary, which for the first four 
months of 1963 was paid to Mr 
Peake, was £255,000. 

However, Lord Rockley was 
a director during that period 
and shared in a total of £2.6m 
in base salaries paid to 13 
executive directors. In addi- 
tion, the 13 directors shared in 
a port of £2.9m in performance- 
related pay. The annual report 
says that performance-related 
pay to directors includes dis- 
cretionary bonuses which are 
“not based on any fixed or for- 
mulated arrangements espe- 
cially related to profits”. 

Shareholder groups have 
called for companies to set 
firm criteria by which direc- 
tors will earn performance-re- 
lated pay. 


Good demand for cigarette 
mak ing machinery from China 
and other developing markets 
helped Molins, the tobacco and 
packaging group, to increase 
profits for 1993. 

Pre-tax profits were 11 per 
cent ahead at £20. 4m, com- 
pared with £18 .3m on turnover 
12 per oent higher at £203Jjm 
(£l8lm). 

Tobacco machinery turnover 
rose 15 per cent to £127.8m 
(£Uim> for operating profits of 
£20.4m (£ 18.6m), up 10 per cent. 

Mr Peter Greenwood, manag- 
ing director, said the division’s 
operating margins were down 
by l point to 16 per cent, 
reflecting lower demand for 
spares from Brazil and the US, 
where sales were hit by a ciga- 
rette price war. However, the 
volume of new machines sold 
and margins improved. Mr 
Greenwood cited the good 
progress of the group’s Passim 


machinery side. 

The packaging machinery 
division, based in the US. 
improved turnover by 18 per 
cent to £75. 1m (£63.8m). but 
operating profits were down 
from £3.1m to £2.7m. Mr 
Greenwood said margins had 
been bit by heavy discounting 
in both the US and Europe. 

In addition to packaging, 
Molins Is seeking to diversify 
into food processing and pack- 
aging machinery, and has won 
its first order, worth £5m. This 
was “tangible evidence that 
the group is taking its know- 
ledge and applying it to a 
wider customer base,” said Mr 
Greenwood. 

The group ended the year 
ungeared, with net cash of 
£3£m, compared with gearing 
of 10.3 per cent and net debt of 
£14.7m at the end of 1992. 

The pre-tax profits were also 
helped by a £3£m net pension 
credit (£3.4m) and a fail in 
interest payments from £2 9m 


to £2ro. Earnings per share 
were up from 41.9p to 49.7p. A 
final dividend of lQ.5p (9.5p) is 
proposed, taking the total for 
the year to I5.4p (Mp). 

• COMMENT 

Tobacco machinery remains 
the driving force behind 
Molins, which might account 
for the modest rating of the 
stock. The group is looking for 
sensible ways to spread Its 
expertise in handling delicate 
materials at high speed, ft is 
Mn g very secretive about its 
first order for food processing 
machinery, but it looks like a 
step in the right direction. 
With a strong balance sheet 
the group is well-placed to take 
advantage of any acquisition 
opportunities. If it grows earn- 
ings by a further 10 per cent 
this year, the prospective p/e is 
an attractive 10. But given the 
group's exposure to China, it is 
worth keeping an eye on the 
Hong Kong political situation. 


Scottish Amicable 
in European link 
with J Rothschild 


By Alison Smith 


Sfnrtish Amirah te gne of (he 
UK’s largest mutual life offices, 
is to set up an international 
life company to provide finan- 
cial services in Europe, in a 
deal which sees its relationship 
with J Rothschild Assurance 
becoming even closer. 

Scottish Amicable European 
will be based in Dublin, and 
will take on the existing 60 
staff, premises and business 
assets of J Rothschild Interna- 
tional Assurance. 

JRIA will in effect, start 
again, under Mr David Beynon, 
who will build up a new mar- 
keting team. Mr Beynon is a 
former colleague of Sir Mark 
Weinberg, now JRA chair man, 
at Allied Dunbar, who joined 
the J Rothschild Group late 
last year. 

The administration and some 
product development for JRIA 
will be carried out by Scottish 
Amicable European, in an 
arrangement that mirrors the 
relationship between Scottish 
Amicable and JRA in the UK. 


Anglian Grp shares slip 10% 


By Tim Burt 


A warning yesterday from 
Anglian Group that full year 
profits were unlikely to meet 
market expectations prompted 
a 10 per cent fall in the double 
glazing company’s share price 
to 287p. 

The Norwich-based group 
has been hit by a fail-off in 
orders following the privatisa- 
tion of the Property Services 


Agency, which represented 75 
per cent of its commercial busi- 
ness, and increased research 
and development expenditure. 

Mr David Herman, group 
finance director, said: "Trading 
in the commercial division has 
been disappointing. Both turn- 
over and margins have suf- 
fered ." He claimed, however, 
that the 28p fall in the share 
price was "totally unjustified”. 

Although Anglian admitted 


that orders placed by the PSA’s 
successors were negligible, it 
said that its retail business had 
picked up and it had won new 
commercial business from 
local authorities. 

“Business is now being 
placed solely on price rather 
than quality," said Mr Hannan. 

Following his statement, 
analysts downgraded full year 
profit forecasts by 6 per cent to 
£25m. 


Exceptional 
boosts Perry 
to £5. 16m 


Sherwood warning 


By David BfacJcwafl 


Exceptional profits on a 
property sale of £L85m. against 
restructuring costs of £328m, 
enabled Perry Group, the 
motor dealer and repairer, to 
report 1993 profits of £5. 16m 
pre-tax compared with losses of 
£3£2m. 

Mr Richard Allan, chairman, 
said the year saw a recovery in 
profits on the sale of new and 
used cars resulting in their 
share of group profits rising 
from 13 per cent to 27 per cent 

He added that the first two 
months of the present year had 
shown a significant improve- 
ment on the comparable 
period. “Despite the continuing 
uncertainty over the strength 
of the economic recovery I 
believe that 1994 will prove a 
year of good progress.” 

Turnover improved to 
£311.3m (£289. 3m). Interest 
charges tell to £LA8m (£3.04m). 
Year-end cash balances were 
£2m. The company raised a net 
£9.6m by a rights issue in Sep- 
tember. 

Earnings per share were 
182p (losses I4.7p). A final divi- 
dend of 4.25p is recommended 
for a total of 7p (6p). 


Shares in Sherwood Group, the 
Nottingham-based lace, linge- 
rie and socks maker, fell lSp to 
151p yesterday after the direc- 
tors warned that 1993 profits 
would be hit by tough trading 
conditions in Europe. 

The group, which relies on 
overseas sales for about half its 
turnover, said the adverse 
effect would not exceed £L3m. 

Pre-tax profits for the year, 
to be announced on March 28. 
are not likely to be below 
£18.4m. 

The directors expect to 


increase the final dividend to 
LSp, giving 2£p (2.6p) for the 
fan year. 

fa 1992, pre-tax profits were 
£16Bm on turnover of £ 1435m. 

Sherwood said conditions fa 
Europe had continued to dete- 
riorate in the last quarter, par- 
ticularly hitting the Dutch and 
German lace operations of Den- 
tes. The managing director of 
Dentes had resigned, and a 
restructuring plan was being 
put in place. 

In addition, greater t han 
expected losses were incurred 
on the closure of its German 
curtain operation. 


Davenport Vernon sees decline 


Borthwicks issues 
trading statement 


Shares in Davenport Vernon, 
the multi-franchise motor 
group, plunged 20p to I32p yes- 
terday. after Mr Ralph Dense, 
the chairman warned yester- 
day that profits for the six 
months to March 31 would be 
significantly below those for 
the same period last year. 

Mr Denne told the annual 
meeting that despite an overall 
rise in group sales of both new 
and used vehicles, there had 
been a falling profit contribu- 
tion from the Japanese and 
Volkswagen Audi franchises. 
This followed manufacturers’ 


changes in trading margins 
and bonus arrangements. 

fa addition, the five new 
dealerships which began trad- 
ing in 1993 had produced losses 
during their start up periods. 

The c h ai rm a n said that the 
group was realigning costs to 
meet current conditions and, 
with a good performance from 
its volume franchises, he antic- 
ipated “a return to normal lev- 
els of profitability in the sec- 
ond half”. 

Pre-tax profits fa the year 
ended September 30 1993 were 
up 29 per cent to £2.11m. 


Jan 1994 
SowSarFTGrapMte 


Borthwicks, the natural 
flavours company, said its 
results for the year to March 
would be affected by the prob- 
lems experienced by its US 
company, start-up costs at F&C 
Hong Kong and the cost of re- 
naming its flavours companies 
worldwide. 

Otherwise, group trading 
had been fa line with expecta- 
tions, with sales 10 per cent 
ahead of this time last year. 

The shares slipped 2p to 
53'Ap. 


DIVIDENDS ANNOUNCED 


Current 

payment 


Data of 
payment 


Afied Leisure 
Arcolectric — 


Exeter Preferred fin 0-88* 


Fortnum & Mason — bit 
Goal Petroleum — — An 

Matos —to 

Perry to 

Sbttar .in .. — —bit 

Vinton • to 


bit SB 
to 1.45 
(In 705 
ffn 425f 
felt 1.72 
fin 5.7 


Corres - 
ponding 
dMdsnd 

Total 

tor 

yuar 

Total 

last 

year 

1 

- 

3 

055 

1215 

1.11 

0.94 

0.68 

0.94 

88 

- 

100 

1.4 

1.45 

1.4 

9 JS 

15.4 

14 

3.25 

7 

6 

1.06 

- 

535 

5.1 


7 


73% public 
take up 
ofMDIS 


By Alan Cane 


J Rothschild Assurance 
Holdings will have a 10 per 
cent stake in Scottish Amica- 
ble International Holdings, 
Scottish Amicable will have an 
80 per cent stake, and the 
r emaining 10 per cent will be 
owned by the management and 
salesforce. 

Mr Roy Nicolson. ScotAm 
managing director, said the 
new venture was intended to 
become operational in June. 

Of the total £28m initial cost 
ScotAm was investing £25m in 
development capital, of which 
some £lm-£2m Is going towards 
start-up costs, fa December, 
ScotAm raised a £10Qm “war 
chest” for acquisitions and 
expansion via a bond issue. 

Sir Mark said the arrange- 
ment announced yesterday was 
“an opportunity to create two 
life companies for the price of 
one”. The two companies 
would share a computer sys- 
tem but would be able to tailor 
products to their own markets. 
Although be in competition, 
each company will focus on its 
own area of expertise. 


Shares In McDonnell 
Information Systems, the 
Hemel Hempstead-based com- 
puting services company, have 
proved harder to sell to the 
public than to institutions. 

The group said yesterday 
that all the shares had been 
placed with institutions at 
260pashare. 

Some 25.6m of the 73.1m 
total had been available under 
clawback arrangements to sat- 
isfy pnbUc applications and 
priority applications from eli- 
gible employees. However, 
only 8£85 valid applications, 
for 18.7m shares or 73 per 
cent, had been received. 

The flotation, valuing the 
group at about £250m, is the 
largest In the information 
technology sector this year but 
analysts said they were not 
surprised by the public under- 
subscription. 

MDIS, a company which spe- 
cialises in applications soft- 
ware and software tools, was 
hard to sell to a general audi- 
ence. There was also a percep- 
tion that the market was 
changing and the window of 
opportunity for new flotations 
closing. 

Mr Anthony McGrath, of 
Baring Brothers, sponsor to 
the issue, said the public offer- 
ing bad been made In defer- 
ence to Stock Exchange 
demands. It had always been 
considered a challenge for a 
company like MDES. 


Sirdar ahead 
in spite of 
yarns’ losses 


By David BlackweB 


Sirdar, the textile group, lifted 
interim pre-tax profits in spite 
of operating losses of £541,000 
in its hand-knitting and 
machine yarns division. 

Profits for the six months to 
end December were £2£lm,~up 
from a previous £2. 67m. Total 
turnover edged ahead from 
£27. lm to £27. 6m. 

The losses on yarns were 
incurred on turnover down 
from £11. 2m to £io.lm and 
compares with previous prof- 
its of £86,000. 

Mr Gerry Lamb, chairman 
and managing director, said 
the company was responding 
to a lack of volume in the 
hand-knitting market by 
switching its emphasis to 
machine yarns. 

Other textile products 
improved operating profits 
from £2Blm to SSJSTm. This 
division, comprising Eve rs u re 
ready-made curtains and Bur- 
matex floor coverings, had 
achieved good results in diffi- 
cult markets, said Mr Lumb. 

The group’s share of profits 
from Its 50 per cent stake in 
Acropolis Hotels fell from 
£158,000 to £128,000. 

Interest payable fell from 
£380,000 to £156,000, and the 
tax charge eased to £975,000 
(Elm). 

Earnings per share were 
ahead at 3.*ip <3.l2p), while 
the interim dividend is 
increased from i.65p to I.72p. 


Exports spark 
Arcolectric rise 


Dividends shown pence per share net accept where otherwise stated, ton 
Increased capital. §USM stock. A Amended. 


Higher exports helped 
Arcolectric Holdings, the elec- 
trical and electronic compo- 
nents supplier, achieve 1993 
pre-tax profits of £403.000, 
against £105,000. 

Turnover improved to 
£11 -8m (£ULSm). Earnings per 
share came out at 5.57p 
<2.l3p). A final dividend of 
0-66p is proposed for a total of 
1.2 15p (l.| lp). 


lK*:t 


Freni'! 1 

group 

I'S 


£. 




Ale 



FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 




\ . 



I L 


INTERNATIONAL COMPANIES AND FINANCE 


Upbeat Bayer forecasts 
20% profits advance 


Commerzbank reveals 3% 
holding in floated BCI 


By Christopher Parkes 
in Leverkusen 

Bayer, the chemicals and drugs 
group, yesterday brightened 
the German results season 
with a confident forecast of 
profits up to 20 per cent higher 
in the current year. 

Mr Manfred Schneider, chair* 
man. said the board had been 
surprised by the strength of 
the recent recovery. Sales and 
earnings had been rising since 
October, he said. 

Turnover bad increased 6.5 
per cent to almost DMTbn 
($4J2bn) in the first two months 
of the current year, and operat- 
ing earnings had unproved 
considerably. This followed a 6 
per cent rise in sales and an 18 
per cent surge in pre-tax earn- 
ings in the final quarter of 
1993. he said. 

Mr Schneider credited the 
group’s restructuring and cost- 


French 
group lifts 
US stake 

By John Ridding In Paris 

Compagnie Gdndrale des Eaux, 
the French utilities and indus- 
trial group, said yesterday it 
has agreed to raise its stake in 
Air & Water Technology of the 
US from 23 per cent to 40 per 
cent 

As a result, it will hold 48 
per cent of the voting rights of 
the US company, which speci- 
alises in the treatment of water 
and the reduction of air pollu- 
tion, and annual sales of 
about |630m. 

The French group described 
the move as “an important 
step in its strategy of expand- 
ing in the US in areas of strong 
growth**. It already achieves 
annual sales of about FFr5-5bn 
(S954m) in the US market 

Under the terms of the agree- 
ment Generate des Eaux will 
exchange its wholly-owned 
subsidiary. Professional Ser- 
vices Group, for 6.5m new Air 
& Water shares. The French 
group will also subscribe to a 
private placement share issue 
with a priority dividend, and 
an issue of ordinary shares in 
the US group. 


cutting measures with most of 
the advance, although better 
exchange rates and the 
North American recovery had 
helped. 

On the debit side, business 
had continued shrinking in 
Germany, although sales were 
down only 1 per cent after two 
months, compared with a 
slump of more than 10 per cent 
in the same period of 1993. A 
domestic recovery was not 
expected before the second half 
of the year, he added. 

Prices remained “absolutely 
unsatisfactory”, and he saw lit- 
tle prospect of increases this 
year. 

Forecasting a pre-tax earn- 
ings increase of between 15 
and 20 per cent after last year’s 
record low of DMl.Ubn, Mr 
Schneider said most of the 
gains would be achieved 
“mainly by our own strength”. 

Further strengthening mea- 


By David Waller 

The supervisory board of 
Metallgesellschaft said yester- 
day it would take legal steps to 
seek damages against Mr Heinz 
Schimmelbusch, the sacked 
chief executive of the Frank- 
furt-based metals, mining and 
industrial group. It will also 
take action against Mr Mein- 
hard Forster, the former 
finance director. 

The supervisory board said 
the move followed an indepen- 
dent report into the events 
leading to the near collapse of 
the group - Germany's 14th 
largest industrial company - 
commissioned in December 
and conducted by Wollert- 
EhnendorfF Deutsche Industrie 
Treuhand, an accountancy 
firm. 

Mr Schimmelbusch is being 
investigated by the Frankfurt 
prosecutor's office for failing to 
keep the supervisory board 
informed as required under 
German law. He has twice pub- 
licly denied responsibility for 
the debacle, and said he wiD 
take all steps to defend his rep- 
utation. 


sures were to follow restructur- 
ing and rationalisation, which 
had reduced fixed costs by 
DM1.5bn in the past three 
years. 

More marketing power and 
other synergies were expected 
from the impending merger of 
the consumer and self-medica- 
tion products divisions. 

Bayer bad set itself the goal 
of ending losses in its textile 
dyes business this year. All 
manufacturers were faced with 
the question of whether 
Europe was the right place to 
make such products, he said. 

Plant protection, another 
problem sector, was also on the 
list for treatment The recent 
merger of Hoechst and Sobe- 
ring's activities in this field 
was a “first step”, Mr Schnei- 
der noted. 

He gave the spin-off of the 
fibres businesses into Bayer 
Faser, with reduced payroll 


The report, examined by 
Metallgesellschaft ’s supervi- 
sory board on March 11, 
focused mainly on the oil 
futures trading activities of 
MG Corp, Metaligesellsc haft’s 
New York-based trading sub- 
sidiary, which gave rise to 
losses of DM2.3bn ($L4bnj and 
drove the group to the brink of 
bankruptcy. 

MG Corp’s oils futures com- 
mitments increased eightfold 
to 160m barrels during the 
1992-93 financial year. The 
report, an abridged version of 
which was published yester- 
day, concluded that: 

• Mr Forster, the former 
finance director, was aware of 
the growing risks associated 
with the oil futures business 
from the summer of last year. 
Other members of the group's 
management board - including 
Mr Schimmelbusch - regularly 
received documents showing 
the rifling scale of unrealised 
gains and realised losses. 

Hie information given to the 
board as a whole, however, 
was deficient in relation to the 
seriousness of the business 
risks. 


Bayer 

Share price {DM) 



costs and manufacturing 
capacity, as one example of 
action designed to foster a last- 
ing turnround in a business 
which had been losing money 
“far years and years”. 

The group had reduced its 
payroll by <500 last year, and a 
further 2,100 jobs were to be 
lost in the current period - all 
in Germany. 


• MG Corp’s accounts, pre- 
pared according to US Gener- 
ally Accepted Accounting Prin- 
ciples (US GAAP), provided a 
flattering picture of business 
development; at the company. 
Had they been prepared 
according to German rules, 
profits from MG Corp would 
have been considerably lower 
than reported. 

• The supervisory board was 
not correctly Informed of devel- 
opments at MG Corp. 

• Dealings between MG Corp 
and Castle Corporation, an oil 
refining company with which 
MG Corp had a tangled busi- 
ness relationship, were skewed 
to the benefit of Castle. In 
November 1993, MG Corp’s 
investment in Castle, a former 
shell company, totalled 5500m. 
Three senior MG Corp 
executives were directors of 
Castle: MG Corp executives 
owned 3.9 per cent of the 
shares in Castle in November 
last year. 

The supervisory board said 
the report supported its argu- 
ment that it was misled by Mr 
Schimmelbusch and Mr For- 
ster. 


AT&T hits 
impasse in 
Energis 
negotiations 

By Andrew Adonis 
and Michael Smith 

Negotiations between AT&T, 
the US telecoms group, and 
Energis, the UK's third 
long-distance telecoms carrier, 
have reached a stalemate. The 
impasse puts AT&T’s ambi- 
tions to enter the UK market 
on hold. 

AT&T, which has a UK 
licence application pending, 
was in talks to take a one- 
third stake in Energis, a sub- 
sidiary of the UK's National 
Grid Company, which is erect- 
ing a long-distance network 
across Britain using the NGC’s 
electricit y pylons. 

Energis offered AT&T the 
chance of by-passing a long 
regulatory process to gain 
access to the UK- Energis 
looked to AT&T for a powerful 
brand name and additional 
funding to complete its net- 
work. 

However, the talks appear to 
have foundered on the valua- 
tion of Energis. According to a 
consultant, Energis was hold- 
ing out for a valuation AT&T 
regarded as “wholly unrealis- 
tic”. 

National Grid is owned 
jointly by the 12 privatised 
regional electricity companies 
in England and Wales. The 
chairman of one company 
said: “There was a big price 
difference and we have sepa- 
rated, bnt are keeping in 
touch.” 

Energis argued that the low 
cost of its infrastructure com- 
pared to that of rival opera- 
tors, British Telecommunica- 
tions and Mercury, gave it a 
structural cost advantage. 
However, AT&T took a more 
conservative view, believing 
the established UK operators 
had significant room to cut 
their existing cost base. 

The breakdown underlines 
AT&T’s problems in gaining 
access to the European tele- 
coms market ahead of the EU*s 
liberalisation of voice services 
in 1998. Its talks with France 
Telecom and Deutsche Tele- 
kom for a strategic alliance 
are also stalled, and the Euro- 
pean Commission has yet to 
agree the terms under which 
new operators can enter the 
EU. 


David Waller in Frankfurt 
and John Simkins tn MHan 

Commerzbank, the smallest of 
Germany’s big three private- 
sector commercial hanks, said 
yesterday it had bought a 3 per 
cent stake in Kanra Commer- 
dale Italians, the newly-priva- 
tised Italian hank. 

The German institution said 
it had recently been asked by 
BCI to take a shareholding, 
which it bought on the stock 
market at an undisclosed price. 

The move comes ami d grow- 
ing belief that institutions 
close to Mediobanca, the Milan- 
based merchant bank, have 
accumulated a combined hold- 
ing of up to 20 per cent in BGL 
which ranks among the top six 


B ugatti International, 
which last year took 
over Group Lotus, the 
UK sports car maker and auto- 
motive engineering consul- 
tancy from General Motors, is 
seeking outside finance to fund 
the next stage of its ambitious 
expansion plan. 

Ownership of the Luxem- 
bourg-registered company hag 
been a mystery since it was 
formed in the late-l9S0s to 
revive the famous pre-war rac- 
ing marque. The veil of secrecy 
is being lifted, however, as it 
prepares to bring in outside 
investors. 

The company claims it is 100 
per cent-owned by the Artioli 
family led by Mr Romano 
Artioli, a 61-year-old Italian 
entrepreneur, who for a decade 
held the distribution franchise 
for Ferrari in the lucrative 
regions of north-east Italy and 
southern Germany. This rela- 
tionship ended in 1988. 

Mr Artioli holds the import- 
er/distributorship for Suzuki 
vehicles in Italy, and controls a 
separate holding company, Fis- 
ico, with interests in vehicle 
re tailing , import/distribution 
and components. 

Mr Mario Barbieri, vice- 
chairman of Bugatti Automo- 
hfli , said the Artioli family had 
a combined annual turnover of 
more than L300bn ($l79m). Fis- 
ico also held a 20 per cent 
stake in the MonTalcone car 
te rminal , a port development 


assets. Such a stake would give 
the group a powerful argument 
for a seat on the board. 

Commerzbank, which 
recently formed commercial 
links with another privatised 
bank. Credita Itabano, said the 
BCI stake was a strategic move 
to intensify operations In Italy. 
Besides Commerzbank, the 
other two Institutions with 
declared holdings dose to 3 per 
cent, the ma ximum voting 
power of any one shareholder, 
are Paribas, and Generali, 
Italy’s largest insurance com- 
pany. 

BCI. which is a Paribas 
shareholder, has 8 per cent of 
Mediobanca, which is a major 
shareholder in Generali 


Cash call plans 
are forcing the 
carmaker into 
the open, writes 

Kevin Done 

near Trieste, which opened last 
autumn to develop car trans- 
port between southern Europe 
and east Asia. 

When Bugatti International 
emerged last s umm er as the 
buyer of Group Lotus it admit- 
ted only that Mr Artioli held 
an 18 per cent stake in Bugatti 
Automobili. the car division, 
which has built a factory at 
Campogalliano, near Modena, 
to assemble the £200.000 
Bugatti EB110 supercar. The 
balance in the car operation 
was owned by Bugatti Interna- 
tional. 

S ome big French corpora- 
tions - including Miche- 
lin. Elf Aquitaine and 
Aerospatiale - collaborated in 
the development of the 212mph 
EB110, and there was some 
indication they might have 
backed the venture financially. 
Officially, however, the share- 
holders remained anonymous. 

The company said this week 
Mr Artioli had been the major- 
ity shareholder in Bugatti 
International, the master com- 


ever, until the bank bolds its 
first shareholders’ meeting as a 
public company. This is expec- 
ted by the end of ApriL 

The jockeying for position 
within the bank has pitted the 
Mediobanca allies against Mr 
Romano Prodi, chairman of the 
state holding company IRI, 
which disposed of its entire 54 
per cent stake in BCI through 
a public offer and a private 
placement. 

Mr Prodi 's wishes for a wide 
spread of ownership resulted 
in a clawback in favour of pri- 
vate investors. There were also 
complaints from Italian unit 
trusts that the allocation had 
not favoured them, suggesting 
a considerable placement with 
foreign investors, out of Medio- 
banca’s reach. 


Bugatti 

pany, from the outset in 1967. 
Artioli family holdings now 
had 100 per cent of the equity. 

Wild rumours have swirled 
around the European auto 
industry about the ownership 
of Bugatti since Lite-1991, when 
the EB110 was first unveiled. 
Reality was lost In talk about 
the sums of money being 
pumped into the development 
of the 550bhp supercar, built to 
outperform rivals from Ferrari, 
Jaguar and Lamborghini. 

T he company is now try- 
ing to clear the air 
ahead of a partial public 
flotation or a private place- 
ment of shares. CS First Bos- 
ton has been taken on board as 
financial adviser, and Price 
Waterhouse has been 
appointed auditor for both the 
I talian and UK businesses. 

Lotus, which was forced to 
stop production of its Elan 
sports car in 1992 because of 
heavy losses, is now working 
on an ambitious product devel- 
opment programme. 

Engineering contracts were 
being won from leading vehicle 
makers that had previously 
been unwilling to use Lotus 
under GM ownership because 
of fears over confidentiality, 
said Mr Barbieri. 

According to Bugatti, Group 
Lotus had a turnover of 553m 
last year. It suffered a loss of 
S6.4m in the first eight months 
under GM ownership. 


Metallgesellschaft plans 
action against sacked chief 


Italian banks in terms of will not become apparent, how- 


Air clears around 



An expanded edition of the FT survey of the Top 500 companies is now available 
for £22. 


The “FT European Top 500" Is a permanent reference of Europe’s biggest, most 
powerful companies, showing how they are positioned for 1993 and beyond. 

Companies are ranked by turnover and sector (including separate UK Tbp 500 
lists), by capitalisation showing profit increases and decreases, and by number of 
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If you would like a copy of the omnibus FT500 complete the coupon below. 


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WEEK IN THE MARKETS 

Aluminium 
and copper 
hit peaks 


The London Metal Exchange 
aluminium and copper markets 
fed off each other's strength 
this week as they surged 
respectively to 20-month and 
gVVmonth peaks. 

Helped by constructive tech- 
nical factors the three months 
delivery aluminium price 
broke resistance at $1,320 a 
tonne in mid-week, triggering 
heavy stop-loss buying. The 
price moved on to $1,353 yes- 
terday morning on speculative 
and physical buying, but then 
ran into profit-taking and 
European trade house sales, 
which took it down to $1,346.50 
at the close, up $9.50 on the 
day and $47 on the week. 

Traders thought the mar- 
ket's bull trend remained 
Intact, however. *Tt will take a 
brave man to go short ahead of 
the weekend," one dealer told 
the Reuter news agency. 

Copper's peak came on 
Thursday, when the three 
months position touched $1,985 
a tonne. Traders attributed the 
rise to bullish charts, an 
improving supply/demand bal- 
ance. a shortage of good qual- 
ity metal and expectations of 
another big fall in LME ware- 
house stocks. The anticipated 
stocks fall was duely 
announced yesterday morning 
and the price, which had 
retreated to $1,965.50 by Thurs- 
day’s dose, rose to $1,970. The 
heavy selling that had hit the 
market late on Thursday then 
reappeared, however, and by 
the close the price had edged 
back to $1,968.50 a tonne, up $3 
on the day and $38.75 up on the 
week. 

Precious metals were on the 
retreat for most of the week 
before gold led a late rally yes- 
terday. 

The yellow metal regained 
$3.05 of the $3.85 it had lost 
over the preceding four days to 
end at $386-20 a troy ounce. 
“Yesterday everybody was 
bearish at $382, now everybody 
is bullish at $386," one dealer 
said. “We may be seeing people 


UHB WAR8NOUSS STOCKS 

(As at Thratay*s c*a3o) 
torutea 


Akmnlum 

+0850 

to 2J399.77S 

Mumfeilwn o*oy 

+200 

to 4S,goo 

Copper 

-1 1,525 

USSOESS 

Loan 

-225 

to 332.100 

Nickel 

+010 

to 138^48 

Ztoc 

+10.300 

toia63r450 

ni 

+110 

to 23^80 


WEEKLY PRICE CHANGES 



Latest 

prices 

Chengs Year 
an week ago 

1993/1904 

Mgh Low 

Gold per tray oz. 

S38EL20 

-0.80 

$331.45 

8405.75 

8326.05 

Sliver per tray oz 

383 JOp 

+30 

24O50p 

306-OOp 

238 OOp 

AhtmMum 99.7% (cash) 

81323.5 

+465 

$1 1465 

81323JS0 

$102X50 

Copper Grade A (cash) 

SI 957 

+44 

$1469.5 

32375.00 

$1 10850 

Lead (cash) 

S46&Q 

+13.0 

8272.0 

S51050 

$361-60 

Nickel (cash) 

S5725.0 

+1Q5.0 

85047.6 

36340 

$4043 -5 

Ztoc SHG (cash) 

E956U 

+17.5 

S»9« 

$1112 

S868.0 

Hn (cosh) 

86645.0 

+150 

15766.0 

S60476 

$4340.0 

Cocoa Futures May 

E954 

+28 

EB97.0 

Cl 081 

£663 

Coflee Futures May 

$1332 

+57 

$880.0 

$1332 

S838 

Sugar (LDP Raw) 

5294-0 

+4.0 

$282^ 

$317.4 

$204.5 

Sariey Futuus May 

EM 05 55 

-0.45 

£13850 

£11830 

C101.50 

Wheal Futures May 

Cl 06.60 

+0.10 

Cl 42.65 

Cl 49.45 

£97^0 

Cotton Outlook A Index 

8150c 

-a75 

8250c 

8880C 

54.15c 

Wort JB48 Super) 

390p 

+3 

387p 

403p 

319p 

Od (Brant Blend) 

813.64k 


81880 

81953 

813^5 


P*r tonne iiM oBwnxto o naud. p hncaftg. c Cert* lb. x May. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Rod Day's Weak Month 

Coupon Data Price change Yield ago ago 


Australia 


9500 

08/04 

113.9600 

-0220 

7.25 

737 

838 

Belgium 


7.230 

0404 

1002000 

-0030 

702 

7.10 

6.78 

Canada- 


0.500 

08/04 

883500 

-0450 

7M 

737 

666 

Denmmk 


7000 

12A34 

101.4500 

-1.300 

880 

6.62 

634 

Franca 

BTAN 

8.000 

05/98 

107.5000 

-0520 

878 

5.70 

5.42 


OAT 

5.500 

04/04 

93.6300 

-0670 

837 

838 

535 

Germany 


8000 

09/03 

980900 

-1.060 

837 

631 

5.69 

Italy 


8500 

01/04 

04 8400 

-1.260 

9.34T 

9-23 

860 

Japan 

No 119 

4.800 

06/89 

105.9810 

— 

3^2 

X63 

2.95 


No 157 

4.500 

08/03 

102.8820 

-0970 

4.10 

3-94 

3.50 

Netherlands 


8750 

01 AM 

95.8200 

-0.940 

836 

837 

5.88 

Spam 


18500 

10/03 

1181500 

-0500 

887 

8.94 

804 

UK Gilts 


8.000 

08/99 

96-18 

-15/32 

878 

885 

534 



8750 

11/04 

96-21 

-17/32 

7.41 

730 

851 



9.000 

1008 

t 12-10 

-33/32 

7.60 

7.40 

882 

US Traasuy 

- 

5875 

02AM 

95-26 

-20/32 

845 

853 

5.93 


6^50 

08/23 

92-03 

-25/32 

888 

7.00 

848 

ECU (French Govt] 

8000 

04AM 

94.1200 

-1.290 

6.82 

631 

6.19 


Londpi ctoolne. "No* York mid-day 
t Groan soul ytaU QnekKing MHNKMtng ton 

Pncw. US. UK in SSntto. rtlwr* In dscunal 


Yield*: Local marVM standant 
at 12.5 per cart po yo blo by nonreaUMTOl 

Spurt' Jtf tf S hfanaaoud 


ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Mr Morihiro 

Hosokawa. prime minister of 
Japan, visits China. Organisa- 
tion of African Unity meets in 
Harare. 

MONDAY: Cross-border acqui- 
sitions and mergers (fourth 
quarter). Balance of trade with 
countries outside the EU (Feb- 
ruary). EU economic and 
finance ministers meet in Brus- 
sels. Representatives from 
Andean Pact countries meet in 
Caracas to discuss their trade 
agreement EU and Latvia hold 
second round of talks on free 
trade agreement. Markets 
closed in Japan. 

TUESDAY: US merchandise 
trade (January). UN Food and 
Agriculture Organisation's 
world food security commis- 
sion meets in Rome (until 
March 25). Pacific Economic 
Co-operation Council meets in 
Kuala Lumpur. EU industry 
council meets in Brussels. 
Financial Times holds confer- 
ences “Doing business with 
Poland” in Warsaw and “World 
Pharmaceuticals''’ In London. 
WEDNESDAY: Retail prices 
index (February). Institutional 
investment (fourth quarter). 
International banking statis- 


tics (fourth quarter). US dura- 
ble goods (February). European 
parliament in session in Brus- 
sels. Ruling Gatt council holds 
monthly meeting on bilateral 
d ispute s in Geneva. 
THURSDAY: UK national 
accounts (fourth quarter). UK 
balance of payments (fourth 
quarter). Agriculture in the UK 
(1993). Farm incomes in the UK 
(1992/33). Earnings and hours 
of agricultural and horticul- 
tural workers in England and 
Wales (fourth quarter). Capital 
expenditure (fourth quarter-re- 
vised). Stocks and work in 
progress (fourth quarter-re- 
vised). New vehicle registra- 
tions (February). Asia Pacific 
Economic Co-operation coun- 
tries hold two-day environment 
ministers meeting in Vancou- 
ver (until March 25). EU envi- 
ronment council meets in 
Brussels. 

FRIDAY: CBI monthly trends 
enquiry (March). GB cinema 
exhibitors (fourth quarter). 
Engineering sales and orders 
at current and constant prices 
(January), Statistics of plan- 
ning applications (October to 
December 1993). Opec minis - 
ters meet in Geneva. 


COMMODITIES AND BOND PRICES 


taking out a bit of insurance 
against incidents in South 
Africa over the weekend," 
suggested another. 

The platinum price, which 
had been lifted in response to 
the unrest in the homeland of 
Bophuthatswana. which 
accounts for 30 per cent of 
South Africa’s production of 
the metal, weakened on the 
easing of tension before rally- 
ing with gold. It was fixed yes- 
terday afternoon at $40040 an 
ounce, op $1.55 on the day but 
still $3.35 down on the week. 

At the London Commodity 
Exchange coffee futures 
climbed to the highest levels 
since the launch of the dollar 
contract three years ago. 

Monday’s news that the US 
Department of Agriculture had 
cut its forecast for the 1994-95 
Brazilian crop from 24_3m bags 
(60kg each) to 23.5m helped the 
May contract to break through 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices from Amalgamated Menri Trading! 

II ALUIOTflUM. BB-7 PURTTY <S per lanrwj 


Precious Metals continued 

■ GOLD COMB (100 Trey raj S/tray ozj 


GRAINS AND OIL SEEDS 

■ WHEAT UCE(E py tonne) 


SOFTS 

■ COCOA LCE ©tonne) 


meat and livestock 

■ ■ CATTLE CMS (■«.0q0g 1 5£*gji_ 


Open 

tat 


Wi- 


the $l,300-a- tonne barrier on 
Monday and investors were 
encouraged by the market's 
ability to hold comfortably 
above that level aver the next 
few days In spite of bouts of 
profit taking. Investment fund 
and trade buyers returned in 
force on Thursday, lifting the 
May price to $1,340 a tonne at 
one stage. It dipped to $1,315 
yesterday morning hut by the 
close was trading at $1,331. up 
$56 on the week. 

Cocoa futures also chalked 
up good gains before producer 
selling was attracted late in 
the week. The May price 
climbed to £985 a tonne on 
Thursday morning but ended 
yesterday at £953, up £27 on 
balance. Traders said that the 
market was continuing to 
attract selling from West Afri- 
can producers and, in the 
absence of buying interest 
from the investment funds, 
this was weighing down prices. 
They noted, however, that 
good support was likely in the 
$948-950 range. 

Richard Mooney 


C»h 

Close 1323-4 

Prretoua 1314-8 

High/low 1325 

AM Official 13243-5.0 

Kerb ctoee 

Open InL 268.626 

Totrt dally turnover 71,670 

■ ALUMMIUM ALLOY (S per tome) 

3 mtha 

1346-7 

1338-8 

1353/1333 

1348-88 

1350-1 

Ctoee 

1304-9 

1316-8 

Previous 

1276-80 

1280-93 

WgtVtow 

- 

1340/1310 

am Oflidai 

1305-15 

1315-20 

Krab ctoee 


1320-5 

Open InL 

4/183 


Total dafly turnover 
■ LEAD (S per tonne) 

629 


Clase 

4653-85 

479J-80.0 

Previous 

462-3 

478-7 

H*gh/tow 

- 

485/476 

AM Offlctel 

463-4 

477.5-80 

Kerb trfoae 


484-6 

Open InL 

35315 


Total dafly turnover 

7.537 


■ NICKEL IS per tonne) 


Close 

5720-30 

5780-90 

Previous 

6710-20 

5770-80 

HlgMow 

5681 

5800/5710 

AM Official 

5660-1 

5720-5 

Kab dose 


5790-800 

Open rt. 

50.639 


Total dally turnover 
■ TIN (S per tame) 

8336 


Ckraa 

5540-50 

5590-5 

Pravtous 

5515-20 

5565-70 

High/low 

- 

5570/5545 

AM Official 

5600-5 

5545-60 

Kerb close 


5590-600 

Open rnt. 

19,720 


Total dally turnover 

3£91 


■ ZINC. Special high grade (S por tome) 

Close 

9553-85 

9755-80 

Previous 

943-4 

082-3 

HfgfWow 

945 

984/963 

AM Official 

345-85 

985455 

Kerb dose 


980-1 

Open InL 

106.833 


Total defly turnover 

22,802 


■ COPPER, grade A (S per tonne) 


Close 

1956-8 

1968-9 

Previous 

1656-7 

1965-6 

HSgMow 

1946 

1971/1054 

AM Official 

1948-7 

1969-60 

Kerb dose 


1984-6 

Open int 

231.210 


Total dafly turnover 

65.958 


■ LME AM Official £/S rate: 1.4808 

LME Closing £/$ rate: 1+4902 


Spot 1.4930 3 ndJK 1.4885 B mffiX1.48S3 9mflKT4837 

■ HIGH GRADE COPPER (COMBO 


Oayta 


Open 

dote ctunga 

IV tow 

tat Vol 

Star 9285 +8165 

9120 32.00 

3.083 703 

A (* 9259 +855 

9285 9285 

1.154 16 

Hay 9820 +4X40 

92S5 Ol.ni 41,894 6.545 

in 91.60 +850 

91.70 91.60 

845 80 

M 9135 +035 

9LB5 9080 

11,087 1.087 

Aag 9135 +4X55 

- 

408 69 


S eft Sty's 
price ckmpo Ujk 

Mr 387.1 *47 --- - 

Apr 387 JS +48 387.8 3882 58,177 58,177 

Hoy 388.7 +48 

Jun 3693 +48 380.1 38X8 39557 5.138 

Ann 3824 +47 332.4 391 JJ 7.608 183 

Set »SL0 *40 3955 393.7 W** 332 

Total 10083 24228 

■ PLATWIUM NYMEX (50 Trny oaj j/bny ozj 


Kir 

Iby 


SW Bay 1 * 

price dun gs HB& law 
10850 +0B0 10550 1KLOO 


JM 107.15 +085 107.15 10700 

So 93.10 -0.10 


BELTS 4X10 85.75 35.75 


Qpra 

U 

W 


Sett 

price 

Dag* 

dunge 

Ktfi 

Ifeau 

low tax w 

18 

18 

■tar 

943 

■4 

943 

039 33* 5 

1.446 

100 

May 

854 

-7 

958 

951 23,577 2488 

554 

I 

M 

966 

-7 

BBS 

964 15.747 610 

3D1 


Sap 

978 

-7 

979 

975 10.536 841 

1200 

18 

Dw 

993 

-3 

993 

988 17MB 

9K 

25 

Htar 

1008 

-5 

1010 

1005 23.451 379 

4^31 

108 

Total 




HAS79 SA09 


Apr 


Oct 

Doe 

fan 

Tat* 


■ WHEAT CUT pnoobu min; cente/BDto bushel} ■ COCOA CSCE [10 tonnes; SftcnnM) 


<££» H* UM T M 

JASSO *411)75 76.600 78JOO 36X01 5JBB 
£?5 4M00 74350 74175 21573 2043 

-ai» TZBS0 Tzm ik»i m* 

£i?S -0.125 740M 717W WEB 1M 

SS 0050 74.150 719rt 1*8 887 

5.075 74000 71850 911 *58 

BUM 11JNB 

UVE HOGS CME HO.OOOtog Cttna/lbtf 


Apr 

4023 

+30 

404.0 

4000 9022 

2134 

JM 

4080 

+08 

4040 

4010 10.074 

1,101 

Od 

<030 

+30 

404.0 

403.0 1.183 

32 

fen 

4019 

+30 

- 

- 570 

11 

Apr 

4050 

+30 

41KUJ 

644 

14 

Total 




22073 

W92 

■ PALLADIUM NYMEX (100 Tray ozl; S/troy oz) 

■tar 

134,10 

+005 

_ 

14 

- 

Jre 

13305 

+005 

134.75 

133.75 2007 

51 

Sep 

13155 

+005 

- 

• 338 

- 

Bee 

133.06 

+009 

- 

- im 


Total 




4^00 

51 


■tar 

338/0 

-1/4 

338/0 

335/4 1,725 

086 


May 

3302 

-2/4 

342M 

33910 BUIS 10215 

JW 

Jd 

326/2 

-2/4 

3284) 

32S/G BUM 

BOBO 

Sao 

S«P 

328/5 

-1« 

330/2 

328/0 17370 

uos 

Bee 

Dec 

337/2 

-VS 

338/0 

338/0 2203S 

340 

Mar 

Mar 

3400 

. 

- 

20 

10 

H»y 

TMM 




223320 21,005 

TOW 


1231 

+15 

1235 

1211 

40.444 5346 

1256 

+15 

1280 

1237 1WM 1.784 

1277 

+14 

1278 

1258 

A264 283 

1310 

+11 

1310 

1294 

6,480 Mr 

1343 

+11 

1343 

132B 

9JB58 

1363 

+11 

■ 

- 

BJ4S 20 
94^55 8,140 


Apr 

Jus 


48850 +0050 46900 
S16S0 *0835 51725 KS2S 
5X000 *0.475 53100 5£«Q 
51.450 *0450 51500 50300 
4J400 +0.125 47600 471® 
t&SSO *4350 48.575 <7.900 


■ MAIZE CgT (5,000 bu mhn centa/S8lb Uixhtf) ■ COCOA pCCCfl (SOffa/tonna) 


■ SILVER COMEX (TOO Troy oz^ Cents/tray ozj 


Mar 

54IJ 

+&9 

5425 

5410 

1.162 

250 

Apr 

5417 

+80 

5430 

541.7 

10 

14 

Mffi 

5417 

+80 

5485 

5420 

73079 

10686 

M 

547J 

+8.1 

5505 

5470 

18,100 

3081 

Sap 

5518 

+&2 

5530 

531.0 

4725 

34 

Dec 

558.1 

+83 

5805 

55&0 

9066 

178 


+ 1/2 2KW) 2OT5 6,755 7S75 

+8/6 3898) 2850)586265 61290 
+02 292/8 288/613Z57S 41,275 
-06 2802 277/4300,485 5,745 

■04 267® 284/4 191450 16/425 

- Z7W 2706 1,580 1,156 

Total 1JS7M f3&540 

■ BARLEY LCE(£ per tonne) 


Star 287 if) 

■toy 2806 

JU 2902 

Sep 77110 

DOB 265/0 

Mr 271/2 


Daly 


Price 
„ 962.74 


nw. Ay 


• ia 
10 dayurarap 


. 941.10 


935.33 


■ COFFSs LCE (Sterne) 


Total 


WA 23325 


ENERGY 

■ CRUOE OB- NYMEX (42J00 US gate. S/bantf) 


Mar 10405 

_ 

9 

Hay 105JS +025 

- 

- 188 

sap 9300 +025 

- 

- 139 

Ho* 9570 +035 

- 

09 

fen 9700 +035 

- 

13 

Mar 9825 +125 

TaW 

“ 

438 

■ SOYABEANS CBT CUKKIa mu; canta/OOD txisM) 


Total 


MHO aeaa 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices adapted by N M Rothachfld) 


Gold (Troy oz.) 

$ pnee 

£ eqiiv. 

Ctoee 

386.00-386.40 


Openfno 

385.40-385.80 


Morning ttx 

385.90 

259.080 

Afternoon fix 

388.55 

259.691 

Day's ttgh 

368.80-38720 


Day's Low 

384.00-384.40 


Previous dose 

383.00-38320 




Ufast 

Oaf 


Open 



price 

ctange 

HW> 

low tat 

M 

Apr 

14.75 

-007 

1408 

1483 S1.I11 

27940 

May 

14JS 

-005 

1405 

14J2 97208 452*3 

Jna 

1483 

4i ra 

1406 

14.72 69.881 

14117 

Jd 

1435 

-003 

1501 

1484 32007 

7494 

A»B 

1583 

■005 

1505 

15J» 1527D 

2671 

Sep 

15.13 

-0J05 

1520 

15.08 19,091 

wptn 

ToM 




42&246I09J8Z 

■ CRUOE OIL IPE (t/barreO 




Latest 

Oof 


Open 



price 

ctanga 

M* 

lam tat 

Vol 

May 

TIGS 

+007 

1165 

1143 69538 25,027 

Jan 

1358 

-003 

1301 

1145 22783 

7199 

M 

13.63 

-004 

1171 

1158 14,686 

1.370 

Aug 

13.77 

-003 

13J7 

13J0 9222 

703 

Sep 

1385 

-0.10 

1300 

1180 4266 

178 

Oct 

1353 

-017 

1303 

13-33 1320 

S3 

Total 




126,774 34218 

■ HEATMQ OIL NYMEX (42800 US paflA; c/US gliL) 


Latest 

Bar* 


Open 



price change 

«ah 

Una tat 

Vol 

Apr 

4425 

+001 

4425 

4190 3*298 

12933 

■ay 

43.10 

-001 

4320 

4285 50341 

6944 

Jun 

43.15 

-007 

4325 

4295 34.470 

4200 

Jrt 

4350 

-0.12 

4170 

4150 22 175 

1,480 

Aag 

44.35 

-012 

4400 

4420 9,458 

53 

Sap 

45.45 

4X12 

45.60 

45.40 0056 

1B2 

Total 




180037 262*7 

■ GAS OIL PE B/taras) 




Salt 

oxys 


0p« 



twice ebange 

W* 

Low tat 

Vol 

Apr 

13725 

-UK 

137 J5 

13790 28.787 

4,402 

Hay 

137.G0 

-050 

13725 

138.25 16J275 

2385 

Jua 

137.00 

-1.00 

13750 

13675 11504 

909 

M 

13833 

-1.00 

138.75 

13825 12208 

270 

Aog 

140.75 

-120 14075 

14025 6835 

10 

Sap 

74250 

-125 

14250 

14250 1331 

10 

Total 




197,501 

7189 

■ NATURAL GAS NYMEX (10.000 iranfibL; SAmBtUj 


Lataot 

Bay** 


Open 



price 

change 

HW 

lam tat 

Vol 

Apr 

ling 

-0018 

2110 

2085 15,483 

7.048 

Hay 

2.145 

-OO10 

2155 

2135 14,373 

1419 

Jun 

2138 

-0012 

2145 

2130 9JC61 

582 

Jd 

2140 

-0011 

2140 

2125 9894 

558 

flag 

2140 

-0013 

2145 

2140 9.778 

58S 

Sop 

2163 

-amo 

2165 

2151 10.452 

347 

Total 




122^12 11567 


Atay 


SPUD *06 6958) 689/4 4#75 2JB5 

aw - 68 M5 6902232395 88555 

092/2 -02 698/4 091/0238420 24930 

685/0 +02 088/4 683/2 38,020 2,480 

668/4 -04 6608 665/4 20J3S5 1705 

663/8 - 6504 631/4153855 20.485 

Total 7rej008146JB08 

■ SOYABEAN Oft. CBT (BO.OOSbs: G8nts/Ib) 


Iter 

1324 

_ 

1324 

1315 

331 61 

May 

1332 

-1 

1335 

1315 

18JB8 1,090 

M 

1333 

-2 

1335 

1315 1236B \M 

Sep 

1329 

+1 

1333 

1315 

1035 382 


1326 

+2 

1328 

1315 

2*83 997 

Jan 

1325 

-3 

1325 

1312 

5JH1 1.057 

7MM 





43,901 5MM 

■ COFFEE tT CSCE (37^00Un; oantaWa) 

Mar 

8005 

+015 

8085 

8000 

92 82 

■fay 

8230 

+0.40 

8275 

81.15 34,584 6440 

M 

8185 

+640 

84 m 

8250 

11,105 2874 

Sfe 

fteno 

+045 

BEOS 

8170 

6739 1,075 

Ota 

0615 

+080 

9640 

8600 

1012 450 

Mar 

0690 

+4X55 

0690 

8610 

1.117 32 


AM 
Od 
Dee 
TOM 

■ PO RK BELLIES CME l 40.00»»a: 

55.050 *0.050 55.100 &4N» 
55.750 +0.600 55.900 S52» 
56100 +0.825 56.130 55.550 
53.550 +0025 51825 51350 
53900 +0 350 59.250 58300 
56350 


MflZ 2520 
11,408 2.628 
3.400 305 

2,775 248 

1,862 2® 
2.106 454 

31,103 «JM 

t en a flbtf 


Bay 


feb 


Total 


127 18 

6452 1729 
UM 398 
882 S3 
52 7 

3 1 

MBS UDO 


LONDON TRADED OPTIONS 

Strike price 8 tonn* — C«B» Frtn — 


Sep 


TOM 

■ COFFEE PCO) (US centa/pound) 


9060910,770 


■17 
CfiopL iJaly 


15 itay average 


.77.45 

.74.55 


Pm illy 
7BJ34 

74JS 


Key 


abb 

Sep 

Oct 

TOM 


23.12 

2301 

2693 

+0.17 

+0-15 

+0.16 

29J5 

29-22 

2312 

2888 1,348 
2678 34,432 
2668 Zim 

1*7 

6966 

4,238 

■ No7 PRBAUM RAW SUGAR LCE (eentaribs) 

Hay 

72.25 

-1X05 

72L32 

12.15 

1^83 

24 

2648 

+0.15 

2605 

2630 6042 

BS5 

Jet 

12.70 

-ojja 

12.70 

12.55 

2.728 

102 

2800 

+020 

260B 

27-72 6296 

508 

Oct 

12.15 

+006 

■ 

" 

145 

“ 

27.15 

+310 

2710 

27 JW 6180 

782 

fen 

12.40 

+018 

“ 

“ 

4.136 

■ 


66460 

16BBB 

Total 





126 


■ WHITE SUGAR LCE (S/torm# 


Her 

185-0 

+0.4 

1962 

194J 

1,017 

854 

May 

3372 

+13 

3360 

3363 

7806 1,083 

May 

1964 

-ai 

1968 

1961 

23391 

6028 

Aag 


+28 

3310 

3267 

1656 

773 

Jtf 

1069 

-64 

197.7 

1968 24829 

2,192 

Oct 

311.1 

+1 2 

3128 

3098 

4,124 

281 


1968 

-63 

1968 

1958 

6979 

461 

Dec 

3068 

+04 

307.0 

" 


20 


19U 

-62 

1949 

1962 

6539 

254 

Har 

3058 

+67 

3071 

- 


50 


1919 

-63 

1928 

1918 

1015 

40 


3067 

+67 

• 

“ 


“ 

Tohrf 





80,396 


Total 





17,751 1207 

■ POTATOES LCE (CAoroie) 




■ SUGAR *11’ CSCE (112.0006m: oants/Ibs) 



M ALUMINIUM 
(99.7%) LME 

1300 fr* 

1325 

1350 

■ COPPER 
(Grade A) LME 

1900 

1950 

2000 32 

■ COFFEE LCE 

1250 

1300. 

1350.. 

■ COCOA LCE 

925 

950 28 

975 18 

■ BRENT CRUM 

1300 

1350 

1400 


May 

Aug 

May 

Aq 

8J 

94 

19 

34 

48 

79 

29 

44 

38 

68 

41 

5S 

May 

Aug 

May 

Aug 

85 

111 

21 

44 

54 

83 

40 

6S 

32 

60 

88 

91 

May 

Jul 

May 

Jul 

135 

113 

10 

17 

92 

82 

25 

30 

57 

57 

49 

49 

May 

Jti 

May 

Jul 

43 

71 

14 

30 

28 

S7 

24 

41 

18 

45 

39 

54 

May 

Jito 

May 

JUI 

84 

. 

27 

49 

48 

88 

45 

68 

35 

47 

70 

- 


LONDON SPOT MARKETS 

■ CRUDE (ML FOB (per bturel/Mny) +or 


Apr 


182.5 +4 2 1840) 1820) 687 

2025 +42 2065 1995 512 

On 1305 - - - 2 

He* ana 

Apr 1255 -25 1295 1250) 

May 1400 

Total 1,«26 83 

■ HIBGHT (HFFEjq LCE (SlO/hdex point) 


Oct 


23 


Jtf 

Total 


12.11 4X03 1224 1150 62520 5533 

1229 -00)2 1237 12.10 34J877 2026 

1179 +001 110)3 1150 30566 1,490 

1135 +0.05 1155 1120 12571 402 

1153 +0.05 1153 1129 1,717 20 

1128 +055 1128 1125 1510 5 

14257210597 


■ COTTON NYCE (SOJXXXts; conta/IM) 


Mar 

1180 

+2 

_ 

. 

298 

1*1 

May 

Apr 

1275 

+22 

1275 

12S2 

1.03b 

192 

Jtf 


1258 

+16 

1270 

1252 

403 

SO 

Oct 

Jrt 

1154 

+8 

1154 

1145 

596 

£0 


Oct 

1284 

+6 

1284 

1270 

241 

9 

Mar 

Jan 

1340 

+10 

1345 

1330 

74 

2 

Hay 

Total 





2,735 

480 

Total 


Bfl 


tan* Rra* 
114i 138 


7526 -0A1 78.10 73.10 22580 3,749 

7652 4X63 7650 7BJOO 13jSB6 1.447 

7406 -056 7*40 7160 2452 444 

7155 -025 7150 7150 13501 1.121 

7257 -0.64 7250 72.10 590 3 

7323 -052 7326 73.06 191 6 

5L82B 8,770 
■ ORANGE JUICE NYCE f15.0Q0Rn: certa/tta) 


Loco Leto Mean Gold Laming Rotas (Vs USS) 

1 month 220 8 months 3.48 


■ UNLEADED GA8QUNE 
Hriffll (42,000 US nWtiOUBgtata) 


2 months — — 22B 

3 months -.353 


12 months 


-3.74 


SHver Fhc 
Spot 

3 months 
6 months 
1 year 
Gold Coins 
Krugerrand 
Maple Leal 
New Sovereign 


p/troy oi 
384.75 
36920 
373.86 
383.10 
S price 
387-39Q 
387.40-399-90 
92-95 


US cts equhr. 
54350 
64820 
55*05 
506.65 
Ceqirfv. 
280-263 



Ltfatf 

Dny* 


Opm 



price 

ibaBua 

Mgh 

LOW tat 

Vol 

Apr 

4670 

-629 

4610 

4640 27AM 16817 

May 

4625 

-613 

4660 

4600 47,015 

7,755 


4660 

-616 

4685 

4635 21801 

2,451 

Jtf 

4680 

-601 

4660 

4640 6225 

961 

Aag 

4635 

-614 

4635 

4615 7.140 

206 

Sap 

Total 

45L95 

-009 

4610 

4675 4,464 270 

126286 21400 


82-05 


SPICES 

Nutmeg and mace prices increased In Indon- 
esia alter tha end of R a ma da n, reports Man 
fteductan. BWP was quoted at US$1,560 a 
lormfl. willi shrivels at Si .750, ABCO $1,850 
and maoa 52.600, tfl ax warehouse. Grenada 
mace No. 2 was latching 82.700 a tonne, cif. 
for Meys/Jute tWpmenL No. i was unavailable. 
West lixton m were at Si ,050 a tonne and 
gura at 51,750 far Aprfl shipment Indonesian 
cassia prices were s9gMy Inn KA/VA sttda 
were <tt $2200 a tonne, spot end 82.103 
shipment; KB BIVCL $1,725, spot, and SI 500 
shipment Madagasc a n cinnamon was quoted 
at FFiBSO a pouid. whle Seycheles oHeringa 
ware fetching 81.450, df. Mexican pimento 
prices were unchanged at 82,000, spot and 
$2,750 for shipment Janaicvi pimento was at 
82200. spot and 52.100 sNpnwit of. 


■w 

10610 

-655 11600 10650 

115 

140 

•fey 

111 AO 

-675 11115 11675 

6788 

560 

jtf 

11190 

-650 114.75 11150 

6412 

189 

s«p 

11610 

-685 116.75 11550 

2JD46 

31 

taw 

114.45 

HUB 114-75 114A) 

IJUO 

12 

fee 

11496 

-050 11645 11490 

1,648 

9 

Ttfji 



19,433 

952 


VOLUME DATA 

Open Wereat aid Volume data shown lor 
contracts traded on COMEX. NYMEX. Car, 
NYCE, CME. CSCE and PE Crude 08 oe one 
day in arrows. 


INDICES 

■ REUTERS (8*33* 18/9/31=100) 


Mar 18 Mar 17 month ago year ago 
18312 18303 1792.7 17552 

■ CRB Futures (Baaa; 4/9/56*100) 


Otfnf 

Sl2.44-2.49w 

-622 

Brent Blend (dated) 

$14.39-4.44 

+0.16 

Brent Blond (May) 

81183-3.65 

+611 

tV.T.L (1pm estf 

S1J.7B-4.83w 

-617 

■ OH. PRODUCTS NWE prompt daflimy CIF (tom4 

Premium Gasoline 

8153-155 


Gas C» 

8139-140 

-1 

Heavy Fuel OH 

$73-75 


tali— j,n, , 

r«pmna 

$132-133 

-65 

Jet Fuel 

8157-1 59 

-2 

naotan, Ai pus EMtowtos 



■ OTHHl 



Gold H»r »>y az)6 

838620 

+106 

Silver (par tray oi)A 

541.5c: 

+7.0 

Platinum (per tray ca.) 

$4oa*o 

+1.55 

PaHodtom (per tray ozj 

$13325 

+650 

Capper (US prod.) 

97JXJC 


Lead (US proa) 

3613c 


TV) (Kola Limpur) 

14.72r 

+0.42 

Tto (Now York) 

2S5^0c 

•IDO 

Zinc (US Prime W.) 

Una 


Cattle (Kve wetghQt 

129 J2p 

+691* 

Sheep (Dve weighty 

i39.a>p 

+14^1* 

Pigs (Owe might) 

72.47p 

-1633* 

Lon. day sugar (raw) 

8294.00 


Lon. day auger (wte) 

$341.00 

+2.60 

Tale & Lyle export 

£31600 

+1.00 

Barley (Eng. toed) 

Jnq 


Maba (US No3 Yeflaw) 

Unq 


Wheat (US Dar* NOW) 

£l860x 


Rubber (Apr)f 

S&50p 


Rubber (May)? 

6SD0p 


RubbeffKL R8S Not ApO 

24650m 

+1J» 

Coconut 06 (Phfl)§ . 

8536 Ol 


Palm Ofi (Matey 4§ 

3382-Sw 


Copra (Pt^i 

83410 


Soyabeans (US) 

E194.0W 


Cotton Outlook A Index 

8120c 

+670 

Wortups (B4s Super) 

390p 

+1 


Mar 17 Mar 18 monHi ago year ago 
22822 22927 22828 211.70 


£ por tonrw irian aOtwwtaa stated, p penos/Vq. c aarai/*>. 
r itTsoMsB. m MstayWiXT cantata. * 4pr w M+s-. I UsjMn 

x AprMxy. f London Phydcti. I OF IM tawtam. 8 BkMan 
mutat dose. 4 Swap pjm wdtfa price* * Change on 
treah. p m atatond pitoax. 


US INTEREST RATES 


■ LONG GILT FUTURES OPTIONS (UFFQ E50J300 841hs of 100% 


US 


LuncMkna 


ntrerato. 


One nonta . 


Broke loan irtr 

Fed. kwh 

Fed tank it kKBfveBtoi_ 


8 Two nxntl — 
5 Tim mnrtfl- 
3d Sl« moiffl — 
- One rev 


TnauanyWto aid Bend YtaUa 
125 Two jtm . 


356 Hxee year- 
358 Rnyar _ 
19B 10-yiar 
433 30-year 


500 

539 

597 

630 

831 


Strike 

Price 

IDS 

11D 

111 


CALLS 


PUTS 


Jin 

2-10 

1-43 

1-17 


Sep 

2-19 

1-58 

1-33 


Jui 

1- 52 

2 - 21 
2-59 


Sep 

2- 83 

3- 26 

4- 03 


■ US TREASURY BOND FUTURES (CBT) 8100.000 32ntfe erf 100% 


Bn. voL Ht* C* sam Pin 10301. Rnwtoua day's epan HL Cels 73882 Pum 50144 


Mar 

Jun 

Sep 


Open 

110-10 

109-20 

108-23 


11023 

109-03 

106-07 


Change 

-0-19 

-0-19 

-0-18 


High 

110-24 

108-25 

108-27 


Law EsL woL Open int 
109-28 15^59 35254 

108-27 440,332 374 A1 9 

107-31 1248 39.965 


BOND FUTURES AND OPTIONS 


France 

■ NOTIONAL FRENCH BONO FUTURES (MAT1F) 


Ecu 

■ ECU BOND FUTURES (MATIF) 


Japan 

m NOTIONAL LONG TBttl JAPANESE GOVT. BOND FUTURES 
9JFFQ YlOOm lOOlha of 100% 



Open 

Sett price 

Change 

HWi 

Low 

ESL vrt. 

Open toL 


Open 

Sett price 

Change 

Mgh 

Lew 

Mar 

125.48 

124.56 

-ua a 

125.60 

124.40 

248,118 

79^26 

Mar 

117.80 

11686 

-1.10 

11780 

11880 

Jun 

125.04 

124.0a 

-100 

125.14 

124.00 

113JJ84 

146740 

Jun 

9160 

9038 

-1,16 

9180 

9602 

Sep 

124.30 

12136 

-1J8 

124J30 

12338 

1,109 

11144 








ESL vql. 
2251 
829 


Open M. 
6282 
4227 


Open Close Change High Low EaL voi Open InL 
Jun 11022 1iaB3 iiaG2 1980 0 

• UflT camtBU traded on APT. A1 Open tatmel figs, era far pmfaua dsy. 


■ LONG TERM TWBICH BONO OPTIONS (MATT) 


FT- ACTUARIES FIXED INTEREST INDICES 


Strike 

Price 

Apr 

- CALLS — 
Jun 

Sap 

Apr 

1 

ri 

i 

Sap 

125 

0.38 

1.04 

- 

1.17 

1.86 

- 

128 

614 

063 

689 

1JW 

- 

- 

127 

0.05 

638 

660 

- 

119 

188 

128 

0.01 

0.19 

0.40 

- 

4D2 

- 

129 

- 

609 

- 

- 

- 

- 


UK QiRs Price Mkes 


1 Up to 5 yuars 673) 

2 5-15 years py 

3 Over 15 yeareR 

4 kradaemahles (B) 

5 A1 stocks (82) 


Fri 

Mar 18 

Oaf 
change % 

Thw 

Mar 17 

Aocnnd 

Intaroot 

xd ad 
ytarfd 

12184 

-619 

12888 

124 

207 

16659 

-077 

151.78 

too 

XSO 

18926 

-1.21 

17142 

1.11 

153 

19183 

-1J1 

19924 

245 

147 

14883 

-089 

14784 

187 

100 


6 Up to 5 ysarsG) 
- - - rfl) 


7 Ova- 5 yeara 

8 Al stacks (13 


9 iOrtre and toren(73) 


EsL voL uts. Ctfai 65.327 Pua 56340 . PreMoui day's open InL. Crtl 356319 Puts 381.146 


Yiekfa 


Maria Mar 17 


m coupon ytaU - 

Yr Bgo HKjh 


Me diu m coupon 


Fri 

Mar 18 

Day's 
change % 

Thu* 

Mar 17 

Accrued 

Interest 

xd ad 
yMd 

187.78 

-0.13 

18600 

682 

141 

18681 

-685 

18136 

659 

1-28 

18083 

-678 

18106 

082 

129 

137.12 

-187 

13687 

117 

248 


Mar IB Mar 17 Yr ego 


US“’ 


Lon 


i# tt ago hpgn 


Germany 

■ NOTIONAL G6R8MN BUM) FUTURES (UFFE)* DM250200 IDOtfia of 100% 


Jun 

Sep 


Open Sea price Change 
97.29 96.60 -022 

98.15 9625 -0.82 


High 

9739 

96.15 


Low 

8637 

96.15 


EsL Ml Open InL 
207529 198122 

94 5090 


5 yia 6.75 

15 yre 7A7 

20 yrs 7.60 

Irredt 7.74 

tndex-Bnkad 


6.62 

736 

7.48 

730 


?■?? ®-75 (1805 5-§T 


730 7j47 (1031 636 . 

731 7.80 (18/3*) 637 (31/1, 


B36 7.74 na/ff) 622 
Inflation rate 


639 

738 

7.59 


6.85 

IAS 

7.46 


625 639 
8.12 738 
839 738 (1031 0-42 


(18/33 5.78 01/12 
[18/31 638 01/12 


7.10 636 7.02 

7.83 7.71 833 

723 7.72 831 


■ Inflation rate 10% 


Up to 6 yre 2.71 

owar 5 yre 335 

Debs 8 loans 


224 

339 


238 2.71 
338 335 

5 yaore 


(18/33 224 (31/13 
(18«i 228 (31/12) 


137 

3.19 


1.79 

3.12 


134 137 fla/3‘3 1.19 (16/2*) 

3.19 3.19 (18/31 2-68 (31/12) 
— IS yeare 


25 years- 


■ BUNO FUTURES OPTIONS (UFFE) DM250,000 points of 100% 


iaiO (18/1) 7AB (20/0 
to date.*1944 HgMjow. 


Strike 

Price 

Jun 

■ CALLS 

Sep 

Jtai 

- PUTS 

Sep 

8050 

1.19 

ISO 

1-09 

1.85 

8700 

0.94 

12B 

1-34 

1.93 

9750 

673 

1.07 

1.83 

2.09 


aS5 837 834 8-97 (4/10 733 (31/12) 872 8.48 930 934 (Ifi/I) 7.36 (20/0 8.77 836 9.4t 

Average press mdempUon yields are shown ebon. Coupon Bends: Low <nt-7VK: Meourrc S%-10X(%; High: 11% end over, t Fiat yield, ytd Y« 

^Correction; An adfustmant has been made to the Debentures & Loans Index due to a data error. For corrected figures please tax 071-873-3090. 

FT FIXED INT ERES T INDICES GILT EDGED ACTIVITY INDICES 

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14 Yr ago HI01* Low* Mar 17 Mar 16 Mw is Mv 14 11 


Govt See*. (UK) 
Fixed Interest 


98.72 8035 9924 100.50 100.09 9736 10730 9338 

120.14 12026 121.37 12120 12138 11339 13337 108.87 


Bn. «CL hurt. Cafe 16767 Ms 20*77 Piartous dxVs Open InL. Criki 247UZS Pua 214S2B 


Get Edged bargains 692 99.7 1008 

May avarago 97.0 963 94.6 

* far 108004. Gwenmen Saortfas hui since cwn u taBon: 127-46 (01/86). low 48.18 (3/1/751. Raed fansssl Ngh dnea concUon 13337 (31/1/94) , tow E03S Q/1/7S he 
1036 and Rued Mmat 19S& SE aoMfr kxflcre isbesed 1074 


1072 88.1 

94.0 982 

100: QoMvnmm B e m l — 10 


UK GILTS PRICES 


■ NOTIONAL MEDIUM TERM GERMAN GOVT. BOND 
IBOBUflJFFQ' DM250.000 lOOUis 0 100% 


_YW_ 19S3/94 _ 

M RM Price C+er- Mdi Ln. 


_T»4_ 

H Red PriceE ■ 


-1993194 
Mph Law 


— Ban— _ 1993/M— 

<1/ PI PH tot +0- Hffi law 


Open 

101.01 


Sett prteo Chaige 
10035 -0.40 


Hflh 

10121 


Jun 

Italy 

■ NOTIONAL ITALIAN GOVT. BOND £BTP) FUTURES 
(UFFE)' Lira 20Qn lOttha at 100% 


Lew 

100,75 


Eat vtrf 
108 


Open Int. 
2B34 


SfaxhT pjMssptaRnTsa^ 

Exc!M3iigc19M 

Toai. llfacLn. 1W*)*_ 

Ertii 12Vri>c 19M 

Trail BK 199414 

12pc 1999 


Jun 

Sep 


Ctowi 

11030 


SeU price Change 
11029 -1.05 

109.94 -1.05 


High 

111.13 


Law 

100.75 


EsL vol Open M. 
70809 95033 

0 8 


BBS & (tat *M5_ 

HHtfClWS. 


Tr*ox1ZVpcl90St*_ 
Mpc 1994. 


■ ITALIAN OOVT. BONO FTP] FUTURES OPTIONS (UFFE) LfcaMOm IQOttis al 100% 



Smlie 

Price 

JlXI 

. CALLS 

Sap 

Jlto 

■ PUTS 

Sep 

11000 

2.89 

326 

130 

132 

11050 

2.42 

102 

133 

3.58 

11100 

2.17 

2.80 

178 

168 


!M«pc199Btt 

Bgefl13’*|KlM6tt 

Ctaeeckn like 1998 

Uses hKtpc 1fl97±t 

Bril Ifliapc 1997 

Tubs W* pc I997ff: 

be* 15pc1997 

Wfle1998. 


Eat VOL UUI. Crtta 2SSO Pua 8872. Pmsu dq/s open InL CM* 68778 Pub 94346 


Tnsta7VpM9aaft 

TrsasRVpc IW-» ±t_. 
l4pC98-l. 


Ttaasl5 1 aPC‘9BJ8_ 

EKh 13pc 1B90. 

TicaoB’ipc 


1138 

5W 

100% 

-A 

lOBfli 

a 89 

6JE 

lflVj 


10540 

1111 

487 

103A 

w— 

1104 

877 

489 

102<* 

-A 

mi 

11J4 

485 

msc 

-A 

mia 

305 

505 

ITU 


s 

an? 

521 

106*2 

r 

1094 

11.48 

540 

111«1 

-A 

1164 

1123 

Ml 

11*4 

-4 

1204 

1288 

580 

1185, 

-A 

1254 

Hit 

562 

114JI 

-4 

iau> 

9.14 

8.10 

1094 

-A 

1124 

1123 

825 

117U 

-A 

122A 

946 

630 

in 

-4 

il«U 

818 

842 

107 

-A 

1104 

lias 

85E 

12B4 

-4 

132JJ 

885 

887 

110i 


114JJ 

70S 

881 IIDAtf 

-A 

109A 

685 

5.45 

ioia 

-A 

1024 

11.17 

080 

1H3A 

-»2 

1314 

11.63 

5JD733Atf 

-K 

140U 

HUB 

087 

I19B 

-ii 

iaa 

MO 

flflO 

iiOH 

-fl 

115A 


Traai1l4i)e 2001-4 — 

980 

788 

i2id 

-31 

12BH 

Fundhg Stax ra9-4 

453 

887 

7TA 

-a 

86£ 

Qxiwnfan»4K 2004_ 

840 

750 

114H 

-a 

12SU 

Traas&kee»ltoW — - 

785 

783 

854 

-4 

105A 

64pc2004A 

788 

733 

954 

-4 

i«4 

Cora S 4 pc 2005 

8J7 

7.49 1 14)!xl 

-4 

125(1 

Trare124flc 2003-5 — 

9.48 

7.73 

1318 

-4 

1 m 

T4PG200M4 

759 

747 

102A 

-U 

■n=B 

Bpc 2002-80 

752 

750102a* 

-itt 

1114 

Trass 1110*2X0-7 

638 

7J3 

12SA 

-a 

1384 

ncMa<2pczoo7tt — 

7 JO 

754 

1074 

-m 

110U 

134peD*-8 

988 

7J5139H* 

-1 

131 S 

Ihtefecaoosft 

880 

785U2gtf 

-14 

134fl 


wa 


94J) 

m 


(k) 

Trees. 2pc ‘94.. _^itKL9S 

- ■— /pa 

jyeww a 35.63 

2J»5CV1 — (78.3) 

2'ipeTO. — - 




(135B) 

lijseya p uis 

I'aKTI— 174.81 


2'aPCTI. 

ZisWU 

zjaxne 

ihKTD 




136 2.61 

138 230 IM’i 

1SB 233170% id 
230 338 1G8U 

291 329113%% 

224 318 l7Si 

3.14 333 157? 

IB 184,5 

322 337 lS>j 

3.42 144)1 


H' 

110 ,’* 

105il 

126/1 

DBA 

MU Over RMi Tears 
W 1 Trass Bpc 2009 



Spain 

■ WOnOWAL SPANISH BOW FUTURES (MB=F) 


Jrei 

Sep 


Open Sett pnee Orange High 

10OOT 100.19 -095 10028 

101.13 


Low 

99.76 


EsL veil. Open Int. 
5038 3 107^80 


Rra taFBem Yean 

EnJi1ZI*tei999„ 

Tn»lO>zw1B9B_ 

Tnrasflpc W9B4+— 


SpeSflOOtt- 


UK 


■ NOTIONAL UK (M.T FUTURES (UFFE)* C50200 32ndS 011 00% 


10*2001 - 
Tteintt- 

7pctri»- 



Open 

Sen price 

Mar 

110-14 

TtO-tt 

Jun 

109-20 

T 09-11 

Sep 


108-16 


-0-26 

-0-26 


High 
110-1 J 
109-21 


Law 

108-18 

108-12 


EsL wet Open ire. 

301 11458 

t1Q2S9 147Q20 
0 107 


wmeanz- 


Utcaxott- 
10 k 2003— 


1088 

745 in, fed 

-4 

120*2 

6lS 

742 

114tl 

-B 

1214 

622 

877 B64tf 

-11 

1D1S 

UB 

7.10 

114U 

-a 

1214 

635 

74B 

109A 

-31 

1164 

iais 

747 

127U 


1363 

8.78 

751 

11313 

-1 

122* 

7.10 

722 

904 

-1 

106A 

7.11 

723 

484 

-M 

31i 

854 

7.46 

1144 

-il 

ISA 

788 

745 

104A 

-H 

113B 

158 

7.48 

118B 

-a 

137A 


12DA 

112J4 


Tim 6 1/4*2010 

Cm fee m 20M » — 

Tires fee 201 2Jt — 

TTa® 5itfC 2006-1 m- 

TiiHa ape 2013U 

7Vpcjm:-i5)$ 

nresoApcanW — 
Ena ifecttJ-17 


7.70 

754 1034tf 

-iA 

110S 

785 

758 

88A 

-id 

9B4 

784 

758 

11313 

-id 

IS® 

781 

758 

1134 

-14 

12711 

677 

757 

MA 

-id 

84 

753 

756 104 Ad 

-HI 

1174 

751 

753 

1014 

-14 

1144 

77B 

7JSS 

M24 

-14 

1204 

846 

7.T0 

MW. 

-ifl 

1604 


el Cl) 10% 

ZJLri- r;'; w gw 1 ™ n pwmwwEec tarew HPI me far 
" (ngnvta prior ta lajuiA nn i dbim bmn HhidKl fill 

1945. RP1 tar Jura 1993: 1413 and far January 1984: 141 A 

Other Fixed Interest 


Ufa 


974 


Nritan Der 1 1 L Jpifl 

MtOwlOW -win 

mom 11‘jpc 2012 

*i*nilCxpg*aoc'10 

SKCtoian 


112,7 

106 

1251, Ob dm 
10913 Dm** 4 !* 


1 fee *97-2. 


sm W0UM3>tfetf- 
48A Co* Vipetl At. 
t08% imsK^An— 

V& QMMb2 > 6lC 

109% im.*«ipc— 


754 

- 504 

-4 

BO 

755 

- «SJ3 

HB 

5*U 

571 

- B14tf 

-id 

71 

851 

- 37Ud 

-id 

«*4 

777 

- 32 Aid 

-H 

384 

784 

- iiHtf 

-3! 

374 




*w 


rn r Ttt/ sex*, tt Tax-fare fa mw+rektarts on E Auction unto, ad Ex dvtdond. OeU nOApaeM on ahoam to powwfa. 


l^lnOMxc ISpc ZOII.. 

Lee® ftigieaw 

}A*PO0l3iiKln«.__ 
UZ fee *20 ML. 

2^'fc aM7: 

uuur. State I6t« aw 


— TIOU _ 



.-1833*4- 


Rtf 

Prime 

+cr- 

W> 

Lxr 

854 

840 

TJO 

773 

,‘5* 

— 

142.'. 

I3H4 

IS 

80S 

852 

130 


M? 

114 

iM 


1M4 

-14 

IS) 

95 

857 

- 

1014 

11C 

W4 

11.88 

- 

1114 


130 

11(1 

Ufi 

883 

872 

1554J 

1404 


s 

13SA 

« 

854 

- 

40*7 


«4 

N 

BJ3 

- 

30 


404 

304 

613 

630 

128 


1364 

114 

4.14 

7.10 

724 


78 

034 

— 

090 

>41 


1504 

1174 

- 

399 

130 


1454 

1154 


- 

148 

_ 

1504. 

1X4 






p£?i^ r 


{ 




t+_- 

Cr.-;. 


W. 


»*- 

Vrr... 


*!■ 








: ^ 


\Kc. ; 


V ^ 



















FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 


CURRENCIES AND MONEY 


. 




MARKETS REPORT 


Dollar gains 


Dollar 

DM per S 

1.74 — 


Sterling 


• yen p<r5.' ■ 

107 


DM pare . 

£57 *••«■* 


Rreidhfranc 

parffli* 

‘ aae 



Foreign exchanges were 
dominated yesterday by 
rumours surrounding the 
unscheduled meeting of Presi- 
dent Clinton and Ur Alan 
Greenspan, chairman of the OS 
Federal Reserve, writes Philip 
Gawtth. 

The meeting immediately 
prompted talk of an early tight- 
ening of US policy, causing the 
dollar to strengthen. The US 
currency finished in London at 
DML6961, more than one-and-a- 
Viaif pfennigs up on Thursday’s 
dose of DM1.68. 

It was also stronger a g ains t 
sterling closing at $1.4888 from 
$1.4975. It closed marginally 
higher against the yen, at 
Y106.035 from Y105.895. 

Markets were otherwise 
fairly quiet in the absence of 
any fresh data to trade off. In 
Europe the D-Mark finished lit- 
tle changed. Against the 
French franc it closed in Lon- 
don at FFr3.407 from FFr3.408 
on Thursday. It was slightly 
stronger against the Italian lira 


closing at L989.3 from L987.7. 

B A White House spokesman 
said there had been no discus- 
sion at the meeting about next 
week's gathering of the Fed's 
policy-making Federal Open 
Market Committee. He also 
said there had been “no mes- 
sages given, and no messages 
delivered." 

Markets, however, were con- 
vinced the meeting must have 
had monetary policy import. 

M Bwml In iw Vprti 
■tar IB — — - Pit*. dosa - 

l spot 1.4830 1.4839 

1 mm 1.4006 1.4919 

3 Rdh 1.40B0 1/890 

1 r 1/4824 1-4833 

Some speculated that Mr Clin- 
ton had called the Fed chair- 
man in to emphasise that the 
Administration does not want 
higher interest rates. 

More popular was the view 

that instnail of ti ghtenin g the 

Federal Funds rate by 25 basis 
points, the Fed might lift the 




1.48 


1/48 ;- I -r- 



Money Market 
Trust Funds 


Cootie & Co m 

UWM9M _ I 




£00 173 | MS I 


MBtCOUl 

UaMUD . 0731 77C1 14 

& -\ ISfeS 

I BlW - - I uab-m 


S 3.“ “ S 

Ul IS US 2 


gSffiEftirssisliS 




\ \ 

V, . -I 

?+; • i : 


a afs« on-easi 

_Tw* - 1 mbI*- 


16 

Feb 1984 

Sours; FT Graphite 


— - - - im i .. i 47 i— 

is * t8 * w . ja 16 

Mar. Ft* 1994. Mar Flat 


Ta 


diamn nt rate by 50 points. Mr 
Steve Hannah, head of 
research at D3J International, 
said this would be a “much 
more aggressive signal” about 
policy intentions than a 
smaller rise in the repo rate. 

He said the speculation now 
was that the Fed had got itself 
into a lose-lose situation. If it 
does not tighten policy. Mr 
Greenspan's credibility will be 
damaged as be will be seen to 
have bowed to White House 
pressure. 

But if he makes a substantial 
move, this will unsettle mar- 


kets because it wiH require a 
revision about the likely pace 
of Fed tightening. 

■ Rumours about the White 
House meeting resonated quite 
strongly In the UK and Ger- 
man interest rate futures mar- 
kets. The June short sterling 
future lost four basis points to 
trade at 94£1 yesterday even- 
ing. while the December future 
was 10 points lower at 94.40. 

In Germany the moves were 
slightly less pronounced with 
the June euromark contract 
losing a point to 9451 and the 


December contract eight points 
off at 9431. 

In both cases the fall in 
futures prices reflects a market 
perception that higher US rates 
will make it more diffic ult for 
European countries to cut 
rates. 

German call money moved, in 
the opposite direction to the 
futures, falling to 5.70/5.80 per 
cent from 5.80/5.85 per cent. 
Call money is now well below 
the 559/5.90 per cent at which 
the Bundesbank allocated the 
bulk of repo's this week. 

Analysts believe the Bundes- 


.. FMl 1904 


bank might now let its repo 
rate fall as low as 5J30 per cent 
from the current level of &88 
per cent. 

Conditions in the UK dis- 
count market were earner yes- 
terday with the Bank of 
England speedily dispatching a 
£1.55bn shortage. 


Praam Ian . -I anls-m 


Money Market 
Bank Accounts 

tarn M CM MOr 


* 





sal is * 

U) 4N fa 

3.19 ! 432 0* 

IMl M3 1 » r 

ia [ 4 w fa 

£*! 4Je| Or 

lia [ M2l Or 


soar wiwtii eenraur. 


E2IU0M4QJM I *5029 4* taW 

EBOjODOarnoet I LOO *39 I M2 1 Mb 


SSiB8SBS£ SSS if? 

iSSSSSmIs^S A 01 I 


0256730000 
£94 i US I fa 


Mrll E S 

Hungary 154.268 - 154/68 tIBMO - 1QSJ40 

Iran Z307JM - 2HHIK) 174800 - 175000 

RanB OjWZB - 04449 02975 - 02965 

Period 3Z782J - S2783J 220240 - 220240 

tatt 295025 - 2560.15 171000 - 172500 

UAE £4701 - £48(5 £6715 - £6735 



POUND SPOT FORWARD AG A NST THE POUND 


OOLLAF SPOT FORWARD AGAINST THE DOLLAR 


Mar 18 

Closing 

mtd-point 

Eur*w 



tank 

fSch) 

17.7832 

Bolgkmi 

(BFi) 

52.0281 

Denmark 

(DKr) 

9.8976 

Finland 

(FM) 

824SG 

Fmce 

(FFr) 

6.6016 

Grammy 

( DM) 

2.5250 

Greece 

O) 

368.689 

Ireland 

00 

1.0411 

Italy 

W 

249820 

Luxembourg 

ILFr) 

52.0281 

Nefhertzndo 

(R 

2.8391 

Norway 

WO) 

108531 

Portugal 

(Es) 

259836 

Spain 

Pta) 

207283 

Swadai 

(SK» 

11.7270 

SwBzertand 

(SR) 

2.1453 

UK 

(0 

- 

Ecu 


12082 

sm 

Amertoea 

- 

0838238 

Argentina 

(Peso) 

1.4890 

Brad 

ICr) 

1179.18 

Canada 

ICS) 

20376 

Mexico (New Peso) 

4.8278 

USA 

CO 

1/4888 

PacMe/MkftSe Eest/Afrtca 

Australia 

(AS) 

20699 

Hong Kong 

(HKS) 

112069 

Indu 

(R3) 

457021 

Japan 

(Y) 

157260 

Mdmto 

(MO 

4.0501 

New Zeeland 

(NZS 

25998 

FWWnaa 

(Peso) 

41.0524 

Saudi Arabia 

(SR) 

55815 

Stagapore 

(SS) 

23582 

S Africa (Com J 

(R) 

51314 

S Africa (Fio) 

(R) 

6-8036 

South Korea 

(Won) 

120125 

Taiwan 

(TO 

392S8Z 

Thailand 

(Br) 

37.6952 


Day** Ud 
high low 


+0.0377 727 
+0.1896 070 
+0.0403 818 
+0.0346 406 
+0.02S 878 
+0.0092 239 
+2.178 404 
+0.003 388 
+1247 068 
+0.1898 878 
+00124 378 
+0.0381 497 
+1.018 594 
+0.86 274 
+0.0229 194 
+00066 442 


- 838 17.7968 
-684 82.0900 

- 033 92059 

- 983 8.2583 

0S2 82143 

- 261 23316 

■ 874 388374 

• 424 1.0454 

■ 873 2489.73 : 
584 52.0900 ! 

■ 403 2.8432 

■ 584 109726 
277 260277 1 
492 207.509 : 

■ 345 11.7605 

- 484 2.1512 


One month Throe months One year Bar* of 
Rata %PA Rae %PA Rate %PA Eng. Index 

17.7794 03 17.7738 02 - - 113.7 

500731 -1.0 62.1631 -12 823881 -07 1148 

98068 -1.1 98213 -18 98561 -06 1148 


Closing 

mid-paint 


Change Bid/offer Day's mM One month Three m o nth* One year J S’ Moigan 
on day spread Ngti tow Hate MPA Rate %PA Rate 96PA tedax 



-18 0627 -18 08493 -0.6 
-08 25285 -0.7 25297 -08 


-07 1.043 

-3.1 2518 

-18 521631 
-08 28406 

08 1086 
-48 262856 
-38 200963 
-20 11.7825 
18 21399 


- 087 18098 1.3046 1.3096 -18 1812 -18 18164 -06 


1.4939 1.4861 


-0014 195 - 360 40458 40195 

-0.0087 885 - 800 1.4942 1.4882 1/4887 


-0418 781 - 938 150680 157860 157.47 20 156.765 26 153845 27 

-08183 490 - 511 48612 4.0447 - - - - - 


08104 570 - 593 23653 23549 

08032 294 - 333 5.1446 5.1006 
0,0176 950- 122 68135 07251 
-091 062 - 147 120587 119021 


ISON on (a Mar 17. EMtaltar spnwcta In Itn Pound Spot tablo show only On last mraa dtcoiMl pieces. Forward raw are mu eoacay quoted la the l 
but ora Indeed by cunt Herat rates. Starting tadox cateutnrad by lha Bark ol EnWand. Boas mmag* 1085 * 10090. OOar end kad-naa In bam th 
tm Datar Soot Bbtei cterwi frnn THE WI4HEUTEF3 CLO9N0 SPOT HATES. Soma valuu ora ratndod by fa F.T. 


CROSS RATES AND DERIVATIVES 


Empe 

Austria 

Belgium 

Danari 

RntarxJ 

France 

Germany 


Italy 

Luxembourg 

Nethertends 

Norway 

Portugal 

Spam 

Sweden 

Switzerland 

UK 

Ecu 

SDR 


Argentina (Peso) 18002 
Brazil (Or) 792058 

Canada (C$) 18687 

Mexico {New Peso) 38100 
USA n 

PadncMcUa Eutf Africa 
Auatrala (AS) 1/4038 

Hong Kong (HK3J 7.7293 
India (R0) 318700 

Japan (V] 100035 

Malaysia (MS) 27205 
New ZMand (NZS) 1-7463 
mupptaes (Paso) 278750 
Saudi Arabia (SR) 3.7491 
Smgepora (3$) 18840 

S Africa (pom) (H) 24468 

S Africa (FK) (R) 48700 

South Korea (Won) 606.730 
Taiwan fTJ) 268900 

Thaland (8t) 258200 

TOON ran tor Mar 17. BhMdtor xprara 
bum knpBad by cunwe Maraar rw 


(Sch) 

112460 

+0.136 

400 - 500 

119500 11.8890 

112655 

-2.1 

112925 

-12 

122025 

-02 

1032 

fBFt) 

342475 

+03375 

330 - 620 

34J9700 34.6800 

352275 

-2.7 

3fr 1475 

-22 

354225 

-14 

1044 

(0«f) 

62483 

+00665 

455-510 

6.0510 

a 01 46 

Ran+a 

-22 

82868 

-22 

6.7283 

-12 

1032 

(FM) 

55412 

+00556 

362 - 462 

5.5482 

& 4944 

pgaqn 

-12 

52522 

-0.6 

52674 

-02 

762 

(FFr) 

6.7777 

+0.0524 

782 - 792 

57306 

5.7528 

5.7915 

-22 

52133 

-22 

52504 

-12 

1052 

(Pi 

12961 

+00161 

956 - 965 

1.6975 

1.6887 

1.6996 

-2.4 

1.7046 

-2.0 

1.7112 

-02 

1042 

(DO 

247.060 

+29 

500 - 800 

247.800 248.740 

2S12 

-17.7 

268.15 

-172 


-157 

71.1 

m 

1/4300 

-00126 

265 - 315 

1.4339 

1.4269 

1.427 

22 

1.4224 

2.1 

14084 

12 

- 

0D 

167505 

+18.4 

730 - BOO 

1078.80 18684)0 

16842 

-42 

1697/4 

-4.8 

17372 

-as 

782 

(LFtJ 

359475 

+03375 

330 - 620 

34.9700 34.6900 

36.0275 

-2.7 

35.1475 

-22 

354ZS 

-14 

104.4 

(FQ 

19070 

+00194 

065 • 076 

19092 

1.8840 

1.9101 

-22 

12141 

-12 

1219 

-02 

1032 

(NKi) 

7A572 

+00591 

562 - 562 

7^3830 

72920 

72679 

-12 

72804 

-12 

72832 

-02 

950 

04 

175800 

+1.7 

400 - 800 

174J00 174.100 

173.58 

-A7 

177.04 

-52 

1622 

-44 

932 

(Pto) 

138-300 

+1.255 

250 - 350 

133J350 138.860 

139266 

-4.0 

14021 

-42 

14625 

-32 

602 

(SKr) 

7.8771 

+00613 

733 - 806 

7A874 

7.8434 

72041 

-4,1 

72414 

-32 

8.0421 

-2.1 

822 

IS ft) 

1^1410 

+0.0121 

405 - 415 

1.4445 

1.4375 

1/4418 

-Ol7 

1.441 B 

-02 

14333 

02 

1042 

CO 

1.4888 

-00087 

685 - 890 

1.4842 

1.48B2 

1.4867 

1.7 

1.484 

12 

1*4784 

a7 

892 


1.1381 

-00107 

378 - 383 

1.1424 

1.1370 

1.1353 

22 

1.1311 

2.4 

1.1231 

12 

- 


Banker Inland HI 
90-tOHgbKBatel 
EtMBO+w- 
cuno-esiaM 

Bank e( Seethed 


3S&3S: 

™°WS 


on -os osra 
to 05+ Ttebr 
M am yam/ 
33 Mi M| 
m U3 t amt 
m *jn tm 

.00 007 Mb 

.10 807 M| 


OK 19 U 
zm £58 m 
ui is m 

150 449 MSI 

3. 19 453 U 


Haraet Gbaqaa Acc 

I1EL . 07MB1BSW 

3500 Z5ZS £546 1 Mr 
250 1575 I £524 1 Br 


RLOMtef 0000' 

A imi . nn +fin 

338 US ATS 

UO 3.7B 550 

S3 lit US 

550 4.13 550 


071-0*2333 

tB-isi » 

BSBSfISSfa.-- 

H1CA.(BAKM— wl 41B 1P M * 


?|Jl ^ ^ll^ rt |aa a 'B* l 2g l "" OTHy 1W 
RLOA (CZ500H I +125 £5031 Altai tMy 


OE72 433372 

i a a 

350 I 4J3lT00di 


zn £7C Vg*» 

357 450 ted> 

£75 MO tam, 

4.12 550 raS/ 

- £29 TOMW 


ft tested 9. Undn B3* 3 
CISOBUMdlbfa— US 
00500- — 5-^ 

IT+lfMWI- 1 Af£ 

mmol -1+75 


?£S5f te 


MCE9000+. £73 

Z MO 

550 


Baao n wMeBMgSoc- 


+08006 001 -002 1.0002 08995 - - - - - 

+1252S 055 - 060 792060 778830 - - - - - 

+08006 684 - 689 18889 18840 18682 -0.4 18701 -0.4 18772 -0.8 

+0.01 050 - 150 38150 22950 23118 -0.8 23144 -08 3.325 -05 


Bardaw Prfaa Accoont 2LCJL 
roBa£a,b HMn 0004; 

eij00tM2+n I 250 150 I 25Z 

££500-£Q5BB Z23 159 2427 

mOOO-C45M - 175 £00 £» 

05500+ I 35b 251 I MB 


Brawn SMpfa A Co Ud 

Ftedoa Qmt, OmHiLLaHM Eta ,on-e*i 

M05 1450 £00 457] 

MAmlM 1+50 350 I 457 1 

QdWIoidnOMcPkr 

IBi n « , . » Wi> l1i>ei|» IMW . 031 SMI 

■” 1 A ” 35825 I -In 


no5m-z2«M0 450 


Gt 


£+a £3+ atr 

£39 £50 Or 

3X3 457 O* 

£50 459 tar 

£50 £41 0> 



+0.0003 033 - 043 
+08028 290 - 296 

- 675 - 726 
+084 000-070 

+08087 202-207 
+08052 452 - 473 

- 000 - 500 

-08005 488 494 

+08023 635-845 

+0818 460 - 475 
+0815 650-750 
+0.1 600-900 
-0835 400 - 400 
+0815 100-300 
tin fa Ddtar Spar eft** 
*. UK. bated & ECU am 


1/4047 18892 15048 -08 1/4077 -1.1 1.4162 -08 

7.7295 7.7255 7.73 -0.1 7.7341 -08 7.7528 -08 

318726 318675 31/435 -28 3187 -28 

106870 105870 10583 18 105.635 18 10286 21 

27299 2.7163 27145 2.6 2898 23 27705 -18 

1.7473 1.7289 1.7479 -1.1 1.7524 -1/4 1,7666 -18 

27.7500 27.4000 - - - - - - 

27498 27488 27515 -08 27568 -0.7 27746 -OJ 

18854 18812 1884 08 1884 08 18076 >18 

24525 24285 3.4611 -68 24901 -68 28873 -4.1 

48800 48375 4801 -8.1 4885 -88 

806800 806.100 809.75 -48 81225 -22 831.75 -21 

224400 25.4100 26.4825 -t.7 2684 -29 

25.3300 258000 2589 -23 2583 -38 2587 -1/4 

*aw «4y fafat Ona decimal plaoea- Porawd omm not dreett/ quawd B> I 
a amd In U8 amy. aj>. Mora* Mtea dram tor Mv 17. Boat amgr ' 


CatarJUtanLU 

2O0kO*ILm.LMdO*EC3»OOJ ,071-e 

* 1+" £01 | £01 

MOWh j 407 - 4* 

Own** *30000-— l 4*» -I 40B 


MaWTWlnOnmHim .(DT-6Z1I195 
totem CM*** I ITT £00 409 m 

■MWMrHa+MM 400 300 I 4JS>[ Mb 

nuto,«teteteMT I in sjb I ozl at- 

£50000+ f *40 £00 I 4* C* 

cstuno-wote bn £» 1 £* tor 

no.aou-EZ4.nw kod 123 im fa 

Buna-nuso luo 100 ziz fa 

Euw-c+ma -luo us I ui or 


am Son &n«te«ynatMrt Rentas 

Mto 10-32 MMinlUL MM MitaUL 


r— — — - - £79 101 £02 M* 

iuisk Rad 1 im> asj - 400 w 

TE5S4«Wtdda 409 - 433 te 



EXCHANGE CROSS RATES 


EflSS EUROPEAN CURRENCY UNTT RATES 


Mar.16 


BFr 

DKr 

m 

DM 

a 

L 

H 

NKr 

Es 

Pta 

SKr 

SR- 

£ 

CS 

s 

Y 

Eca 

Belgium 

(BFr) 

100 

19.02 

1623 

4.853 

2001 

4801 

5.456 

2125 

4692 

39B2 

2224 

4.123 

1222 

3217 

£882 

3032 

£514 

Denmark; 

(DKr) 

52.57 

10 

8291 

2261 

1.052 

2524 

2888 

1126 

2626 

2092 

1125 

£167 

1.010 

£059 

1204 

1592 

1221 

Fnmcn 

FFr) 

6049 

11.61 

10 

2235 

1210 

2904 

3300 

1273 

3021 

241.1 

1324 

£494 

1.163 

£388 

1.731 

1832 

1221 

Germany 

(DM) 

2aei 

3220 

3407 

1 

0.412 

9882 

1.124 

4237 

1022 

8214 

4.648 

0250 

3396 

3807 

0290 

62-53 

0218 

Ireland 

(H? 

4928 

9208 

8283 

2.426 

1 

2400 

2727 

1022 

249.7 

1992 

1127 

£061 

0261 

1.958 

1.430 

151.7 

1256 

to»y 

(U 

£083 

0296 

0244 

3101 

0.042 

ioa 

aiw 

0.438 

10.40 

8203 

0/470 

aoee 

3040 

3082 

0260 

6221 

3052 

Nethertandi 

mo 

1823 

2488 

3.030 

0289 

0287 

8792 

1 

3257 

9125 

7305 

4.132 

3756 

3352 

3718 

0224 

55.82 

3481 

Norway 

(NKt) 

4722 

9.039 

7256 

2300 

0.951 

2281 

2863 

10 

237.4 

1894 

10.71 

1259 

3913 

1201 

1260 

1442 

1.195 

Portugal 

m 

20.02 

3.808 

3310 

0.972 

0.401 

981.1 

1292 

4213 

100 

7920 

4213 

0225 

0385 

3784 

0273 

eare 

0203 

Spate 

(Pta) 

25.09 

4.772 

4.148 

1217 

0202 

1204 

1269 

5260 

1252 

100. 

5256 

1234 

3482 

0283 

371 B 

7313 

3831 

Sweden 

(SKI) 

4426 

8.430 

7233 

2153 

0.887 

2130 

2420 

9235 

2212 

178.8 

10 

1229 

3853 

1.737 

1288 

1342 

1.115 

SwHmrland 

(SFO 

2426 

4214 

4.010 

1.177 

0.485 

1165 

1224 

5.105 

1212 

9620 

5.466 

1 

3488 

3850 

3694 

73.61 

3610 

UK 

« 

52.03 

9298 

8202 

2526 

1241 

2498 

yuan 

1026 

2592 

207.4 

11.73 

£145 

1 

£038 

1.488 

1672 

1209 

Canada 

(CS) 

25.53 

4257 

4221 

1239 

0211 

1228 

1293 

5273 

1272 

101.8 

area 

1.053 

3481 

1 

3731 

77.48 

3642 

US 

(S) 

3424 

6247 

5.777 

1.898 

0290 

1878 

1207 

7254 

1742 

1392 

7278 

1.441 

3672 

1209 

1 

1030 

3876 

Japan 

(Y) 

3292 

6229 

54.48 

1529 

8293 

15820 

1728 

6925 

1848 

1313 

7429 

1328 

6233 

1£91 

3430 

1003 

3284 

Ecu 


39.78 

7267 

6.576 

1230 

0.790 

1910 

£170 

6272 

188.7 

1582 

8.958 

1.640 

a785 

12GB 

1.138 

1237 

1 


Mar 18 

Ecu can. 

tote 

Change 

%+/-from 

% apread 


rates 

against Ecu 

on day 

can. ret* 

v weakest 

Ireland 

0208628 

3796509 

+300028 

-120 

427 

Netherlands 

£19672 

£16974 

-020109 

-123 

429 

Belgium 

432123 

38.7673 

-30055 

-1.11 

4.18 

Germany 

1.04864 

1.63016 

-30012 

-1.00 

426 

Franco 

353883 

357747 

+300667 

nm 

£40 

Danmark 

723879 

726309 

+301169 

1.70 

129 

Spain 

154250 

168256 

-3122 

£79 

321 

Portugal 

192254 

198254 

-3167 

£01 

300 

NON ERM MEMBERS 





Greece 

264213 

281.547 

+3002 

348 

-326 

My 

1783.19 

191122 

+424 

620 

-327 

UK 

a 786748 

3765852 

-300106 

-2-68 

522 


071-Ha 4000 

£00 40 S IteBBOD IteWg £0B £710 I 90791 fa 

£+8 +* S nteai—nteion. sjm zjij 300 fa 

riS IS S MMBB00Q+. £079 2000 1 £0921 fa 

rn ill 55 SSfSSS?' £ 

1JBII £JDZ mu TySKlTBSA 4475 — I M47I dr 

S 12 1 !S uunmtktaM 

1lk*lOa*teWN.l*teW1M7M. 071-2* 0094 

ts 7^2: 

~r ITrtr nrnfiti tnhfflnn Tit «w«-.to-__l 705 smI -litey 

7ora Tlntrim nnmtalnno Timt I W 

Fiajoao-oKm lira 179 1 £75| fa ratea£Hn.Bi4oor *1-4473*30 

c»jooo-eauiB_l xn 201 1 seal air rwiMnninmin nnma* 

tlflO0OMW0«0_l 0* £H I £0Sl fa 53o»+__r__l 4JS 198 I 40*1 fa 

IteCa-aaertatwItaak 2 Hanry Schroder Want & Co Lta 

Wto«l5c 5te*fa lao 03452320* tefaweteu Intel iEBsBS PMRna 

I PS4 I 499 . | -I TVaty Sdnae+ec.—. ■ .1 179 20 I 300 1 Ian 

■ Bommtmm — I** £*l «00l te 

f*”*™ . A ” 1 “ ll m Wedoni Untf Mull tatarast Owpwfcc 

I M2|iw* ‘jsre 

S2MOO-E400D9 400 130 409|9-ll» S A.TS 1 f2 3^51 fSJI £ 

SSS8®Sr= iS iSI 5 Site SSSSSEzdS SSI si s 

VNlto-lMtataNiMp 

BtLDOBf 175 ZSl I £7»ffl KBn 

nttlMB-WSJISB 305 244 U N* *0* ta teOM te « teOB P0»W*V W 

ESAS-CSUHO— £29 MB I TTOlB Hill tenaUTM OOna B >_bte te oawto 
^eambwa+femai^a H* nOa ar IWaaW pniOia Mu WWtol tor Ovaialaa id 

*710000+ 400 300 I 455|0-Wb S!f 

tsom-nnsm .. £* 200 uo h* ” 

ctaeao-nuag zre zob xn e-tan g * 

mtn *7°° +++ 100 I 29l54tt awrawwaiiwwinraTOW 

30-ra fa tea ■MbbTdoavte waa 


OyUKdata Bank Rnlita SatallM tax 

30a«MMIHKa.aaaiB«G12M. 0«T-H£7e7O 

FiauOOO-C200M ( 170 £70 1 375 1 fa 

aojoatManaiB I *n 201 1 9001 fa 

cioMoo-eiflajM—l s* last i*sl fa 

TtatCo-opanri la eBaok 
1>t)0K3OO.StenaM£la»> 03452320* 

HSSA_ I 929 -I. -ITW7 

Mte-todfeMCaadtaM , 

W ltorre T+jjo 90S I Uhl Mil 

r50J*X»+ T "-^T ib £04 f S02|s-Mb 

S2MOO-C40JB9 400 130 409 0-40) 

eiouootMSims l+n i* 404|n-Mk 

omo-tsMeZ I zjb 229 I ixalo-Mn 


■nn TnU bokjfc 

™ 20-39 Man. Hfala 


0272 744770 
3079 fa 
1003 fa 
£032 fa 
4JM0 fa 
4447 fa 


Van par 1.000; DenMi Kienar. Ranch Franc. Nonteglwi Kn 
■ D-taARK nmnes dm 125,000 per DM 


I tauten Kronor par ' 


1 Frmv, Eacuda, Ua i 


I FUTURES QMM) Yen 128 pgr Yen 100 



Open 

Latest 

Change 

High 

Low 

EsL vd 

Open int 


Open 

Latest 

Change 

High 

Low 

Eat vd 

Open W. 

Jui 

35890 

35875 

-30018 

35896 

35862 

60283 

88.7B7 

Am 

39485 

39454 

-30028 

39498 

39445 

17.105 

47289 

Sep 

05850 

02855 

-30021 

02855 

32850 

222 

£753 

39(, 

- 


- 

- 

39505 

124 

1268 

Dec 

- 

35850 

- 

- 

35850 

4 

112 

Dec 

- 

39580 

- 

- 

02560 

45 

384 


Ecu central raws oat by BwBanpawi Cfanteaion. Owanclaa ora In daa c a rato i u itete ateiflth. 
Parcuncnga chwigai am tor Ecu; a paWte changa do nate a araM cfaWtoy. Oteraance draw t ha 
ratio bamaen bin qaade Oh paremtoga teannee batman too actual mM and Ecu cartel rate 
tore cunoncy. and ewowWn un i p o m taod porcanbraa dwMon of lha ara n oyl mate! raw horn M 
Ecuoanrafite 

R7/WS9 Swing and Hate Ura ■utoandid bran ERM. AdJusxrajra m l ntato d by 0M FtomcU Italia. 
■ PWLACSPW SE 09 OPltOHB £31 £50 (centa par powKl) 


■ SWISS FRANC FUTURES 0MM) SFr 125,000 per SR 


I (IMM) £62800 | 


Jim 

0.6851 

38939 -0.0011 

36956 38918 

19234 

32292 

Jim 

1.4688 

1/4846 

-30036 

1.4900 

1/4818 

10263 

25067 

Sap 

- 

0.6842 

36930 

39 

260 

Sap 

1.4810 

1/4610 

-00040 

12810 

1.4790 

88 

618 

Dec 

- 

0.6960 

02950 

2 

37 

Dec 

- 

12780 

- 

- 

1/4760 

5 

30 


Sfrara 

Price 


- CALLS - 
May 

Jun 

Apr 

— PUTS — 
May 

Jun 

1/400 

827 

820 

827 

- 

006 

327 

1/425 

627 

808 

620 

- 

327 

383 

1/480 

327 

405 

4/44 

319 

373 

124 

1/475 

1.63 

£45 

£90 

379 

127 

£19 

1200 

3B6 

120 

122 

£11 

P8B 

£47 

1226 

316 

nun 

104 

405 

424 

317 


Are you dealing in over $lm? 
Fast, Competitive Quotes 24 Hours 
ou 071 815 0400 or fax 071-329 3919 


Prwtoua day's voU CMi £013 PUa 18073 . Pie*, fay’s open Oft, Cite 4&208O Pun 337003 


INVESTORS - TRADERS - CORPORATE TREASURERS 
SATQUOTE™ - Your single service for real time quotes. 
Futures * Options * Stocks • Forex * News * Via Satellite 

UaraXN +71 329 3377 NEW YORK +212 2696 636 EKANKHJKT + 4969 440071 


WORLD^NTEREST RATES 


MONEY RATES 

March 18 Ovor One Three Sx One Lamb. Db. Repo 

night month mths mtns year tutor. rate role 


1 1WIWI4IK HfTMBBI (UFFg- DMIm points of 100% 


week ago 

- 

5ft 

6K 

5ft 

6ft 

7.40 

5.00 

- 

Frianco 

61 

Oft 

614 

6ft 

5ft 

0.10 

- 

7.75 

weak ago 

5ft 

6ft 

6% 

6ft 

58 

6.10 

- 

7.75 

Germany 

5.75 

585 

575 

528 

538 

0-75 

525 

528 

week ago 

395 

525 

525 

525 

5.43 

C.75 

525 

504 

bebnd 

5ft 

5ft 

8M 

6M 

6ft 

- 

- 

are 

week ago 

6ft 

Gft 

6* 

6ft 

6ft 

- 

- 

375 

Rely 

8ft 

6ft 

83 

83 

8ft 

- 

800 

602 

week ago 

8ft 

83 

Bft 

8ft 

8ft 

- 

300 

822 

Netherianda 

523 

547 

529 

5.18 

518 

- 

5® 

- 

week ago 

523 

547 

520 

521 

318 

- 

525 

- 

Stritaartand 

4 

4ft 

4ft 

4 

3fl 

61*25 

400 

- 

week ago 

4 

«1 

4ft 

*4 

38 

6.625 

4.00 

- 

US 

3K 

3te 

38 

4ft 

4ft 

- 

£00 

— 

week ago 

3V4 

3rt 

3» 

4ft 

4ft 

- 

£00 

- 

Japan 
weak ago 

Ztt 

2tt 

Vk 

2H 

2<4 

2S* 

2ft 

2ft 

Zft 

2ft 

~ 

1.75 

1.75 

“ 



Open 

Sob price 

Change 

H0h 

Low 

Esl vri 

Open Ira. 

Jim 

9421 

9421 

-0.pl 

9422 

9428 

30394 

281306 

s«p 

94.78 

94.74 

-0.06 

94.78 

94.70 

33310 

160633 

Dec 

94.98 

9421 

-0.08 

9428 

9428 

34086 

153905 

Mar 

9505 

9427 

-0.10 

9505 

9421 

167G6 

124315 

■ THREE MONTH EUROURA MTJtATE FUTURES (UFFE) LI 000m points 01 1Q0K 


Open 

Self price 

Change 

Htfi 

Low 

EsL rot 

Opai tet. 

Jun 

6125 

91.73 

-0.12 

BIOS 

9128 

8481 

59203 

Sep 

82.11 

9106 

-0.16 

02.11 

9124 

2827 

29638 

Dec 

fts> » 

92-13 

-315 

rwfai 

82.10 

2638 

38812 

Mar 

9228 

92.13 

-ais 

8228 

02.10 

1070 

7flq? 

■ nn 

H ■amM EURO SWISS FRANC FUTURES (LJFFE) SFrtm prints of 100H 


Open 

Sett price 

Change 

Hgh 

Low 

EsL Ml 

Open InL 

Jim 

9311 

9308 

-0.03 

9312 

9305 

4144 

33083 

Sep 

9318 

9317 

-0.03 

9319 

9315 

703 

7258 

Dec 

9310 

9309 

-0.05 

8311 

0626 

196 

4882 

Mar 

9800 

9300 

-O.OS 

9300 

9300 

25 

99 


UK ; IMTEREST* RATES 


LONDON MONEY RATES 

Mar 18 Over- 7 days 


nottae month montae months year 


5*4 ltt-4% 54 -5 5A-5i 5A-5J, fi>,-5*4 

5«a-5jr 5>«-5A 5>a-5i 5A-Si 
4fi-4S 44. - 4lJ 

- - 4&-4C 4|J - 4 ft 4 JJ-4J5 

H'5A 4a-4|J 5A-5.V 54 -5i S&- 5 A 5il - sA 


WarbanK Staring 5*4 5ft ■ 4% 5ft 
Starling CCS * 5^ - 

Treasury BUS + - 4fi - 

Bank Bfla - 4JJ- 

Locsl authority daps. 5ft * 5ft 4jj - 4jj 5ft - 
Osccurrt market dkya. 6-4 5,'* - 4lJ 

UK bearing l»ik base tutbp rata 5>4 per taut tor 


turn es 

ftopnoie 

TRADERS 
rauREFraaBrT i 
toC OM MH WM WWI 


IRBELEY FUTURES UMTTE 

38 DOVKR STREET, LOTtDON.WIX 3KB 
TEL: 071 829 1133 FAX: 971 496 0022 


i (UFFg) Eeulm potats of 100% 


■ SUBOR FT London 
t n bar tmt l r rialng 
week ago 
US Dotaor COa 
week ago 
SDR Linked DB 
week ago 


3fc 4Vt 
3% 414 

384 3.92 

3.70 480 

3^ 3Jk 
3% 3% 



Open 

Sell price 

Change 

High 

Low 

EsL vri 

Open tet 

•In 

94.10 

9425 

-028 

94.10 

94,02 

1043 

11225 

Sep 

9425 

9429 

-029 

9425 

9427 

184 

10334 

Dec 

94.48 

94,40 

-an 

94/48 

9429 

135 

6848 

M* 

64/48 

94.40 

-314 

94.48 

9423 

25 

373 


ecu Lkete Da add rate: I irate 8S; 3 mttlft 61. 0 mtt» OH 1 yara; so. S LBOR tnaat 
mtea «ra ettarad rate tor 51 On quetod to the marker by tew i tera te bate ■ liens aec 
dq>- 11 m bank* ora Bantam Truer, Bra* at Tokyo. BanOfa and Natural W ooai e ra ra. 

Md rates am mm tar lha domaodo Moray Raua. US 9 CD* raid son Untad Deparata | 

EURO CURRENCY INTEREST RATES 

Mar « Short 7 days One Three Six 


UK dealing talk base landtag rata 5>i( per can from Febnay B, 1994 

Up U 1 1-3 3-6 B-B 9-12 

' mtuUi month rnonriia months incma 

Certs ol Tax dop. (£100800) 1*a 4 3% 3% 

Cato of Ta* rfax under HOODOO to lbp& Oopcato raWrctewn Jcrcte Vpc. 

Am. tondor ite at cBocaaft 40O5Spc. ECOD brad ala 3U9. Export Rnanca. Maw up day Fobrutay ZB. 
1994. Agreed ra» tor parted Mar 26. 1084 to Apr 25, 1994, Scbamaa B8S CJOpc- rtatoranca ite far 
period Feb 1, 1»4 to Feb S& ISM, fidwtim IV 6 V 5JtHpc: Pnonce Koom Bom Roto 9i«c fata 
Mori. 1894 

■ TlSgEMOimiSTERUWQFiniin»S (UFFg £500800 polotsol 10016 

Open Sett price Change High Low Eat voi Open M. 
Jun 9484 9483 -002 9485 9480 26362 118184 

Sep 94.71 9488 -0.07 94.71 94.61 23329 73288 

Dec 94.47 84/91 -089 94-47 9487 17818 101965 

Mar 94.16 94.12 -088 9416 9407 4260 32935 

Traded on AFT. Al Open tatatet 5* ore tar pntrioua day- 

■ SHORT STHMJIfC OMTWHS (UH=q CSOQJOOO points Of 10096 


FOR TRADERS ON THE MOVE 

Watch the markets move with the screen In your pocket that receives 
Currency, Futures. Indices and Neva updates 24 hoots £ day. Fbr your 7 day 
free trial, call Pbtnres Pager Lid ou 071-895 9400 now, 

FUTURES PAGER MM Hi 




Ibebcdn yteteOidrttliiwyiierHnandd Bodamdar an bdp 
yea, cMlddadMu^ or fan Jatotoana 071828 7233 orrarte 
b 1C tratePto.»i I Ckaaraoqrftelte UrndtaaSUrTVOBa 


Duff Forecasts and Market Myths for 1994 

T"* tolls’ ” |!l soar, dc'.ic: cc-riinuo; gold 1 rn-iti comrnod.'tlo; 


/ span s oco-.o 
:ca tder in Fu:;c 


Briglen Franc 

61, 

■ 

6*4 - 

•& 1 * 

64, - 


ft 

-8 

6>a 

-8 

6ft - 

53 

Drafan none 

5% ■ 

-Sh 

64, 

- a 

64, 

-6 

6*0 

s* 

ffi, - 

5% 

S4- 

51k 

fHtatk 

5Tl ■ 

■54, 

518 ■ 

era 

5S- 

5% 

5N 

5ft 

5ft- 

sht 

5ft- 

Sh 

Dutch GuSdar 

6.1 ■ 

■ s,; 

5fl ■ 

5ft 

51*- 


V. 

5ft 

54,- 

5*0 

6ft- 

5 it 

French Frene 

6fl ■ 


6ft - 

6ft 

6ft - 

«ft 

64, 

6 1 * 


-8 

53- 

S3 

Rortuguaoe Esc. 

10ld 

- 10 

101* 

- 10 

10L 

-94, 

94, 

94, 

91* 

-B 

9** 

-0 

Spanish Pesata 

B A ■ 

84, 

0J* ■ 

8ft 

84*- 

8ft 

aft 

- B 

8ft 

- 8 

8ft 

-8 

Starting 

SH- 

-Sia 

5^3- 

5*, 

54, - 

5J« 

5*4 

51b 

54, - 

5ft 

5ft- 

5ft 

Swiss FtWK 

4*4 

- 4 

44, 

- 4 

4*i 

- 4 

4ft 

3i3 

3i3- 

3ft 

3)1 - 

3ft 

Can. Ddar 

3»- 

3ti 

4 - 

34, 

«A- 

312 

4ft 

4ft 

44* - 

4!k 

54*- 

5 ht 

US Da«ar 

3A ■ 

3& 

3*- 

34, 

3ft ■ 

3ft 

3* 

34, 

«• 

■ 4 

4*9- 

4 h 


9 - 


a*- 

fh 

8\- 

7% 

***- 

7* 

bJ( - 

74. 

7h- 

7b 

Yai 

2£- 

2£ 

2ft- 

2ft 

2ft- 

2ft 

2ft - 

24« 

2ft- 

2b 

2*9. - 

2ft 

Asian *Steg 

3*2 ■ 

2h 

3>Z - 

2h 

3^2 - 

2‘a 

4 - 

3 

4 - 

3 

4U- 

34* 


* THBMMOHTHBUBOPOIAJUIPMM) Sim potato of 10096 
Opal Latest Change Ffigh Low 
Jim 96.70 95.66 -084 95.70 95. S3 

Sep 9529 9525 -085 9529 9523 

Dee 9468 9483 -085 9488 8400 


Changa 

Kflh 

Low 

Esl ml 

Open frt 

-024 

95.70 

95.03 

115277 

495/49 

-025 

9529 

9523 

92210 

307/49 

-005 

9428 

84.00 

54258 

203.174 


S trace 

Price 

Jtm 

— GALLS - 
Sap 

Dee 

Jun 

— PUTS - 
Sap 

Dec 

9475 

0.17 

aia 

0.16 

029 

027 

020 

9500 

0.06 

pnn 

Q.B8 

nen 

0.43 

0.67 

9525 

aoi 

024 

024 

043 

023 

028 


ck ma.-ke: be 
<? l=oncc!c;!!c ir,v 
:-o fe.ncu o O- C - 
-:D !JK To; 7: 


Esl WL total Cana >2909 Puts 10469. Fnwtua day's open tat, Cte 113094 FW> 118756 


FOREXIA FAX $ £ Dm ¥ 

A 0 YEAS PUBUC RECORD OF ACCURATE SKORTTBIIt PORBGM EXCHANOE FORECASTMO 

DA ILY F OREIGN EXCHANGE COMMENTARIES, 
CHARTS, FORECASTSAND RECOMMENDATIONS 

Tah +44 81 948 8316 Fax: +44 81 948 8469 

FOREXIA FAX - by ualng handed an your tan machine tflal+44 61332 7426 


■ usTRusumri 


I (tarttat) Sim per 100% 


98.08 96.08 2^95 33871 

9574 9573 445 8877 

9539 28 2819 


two days' nonce. 


E HOffTH POOR Ftnunss (MAnF) Peris Interbank 1 


Strike 

Price 

Jim 

- GALLS - 
Sep 

Dec 

Jim 

■— pure 
Sap 

9480 

012 

n.w 

023 

O.11 

0.11 

9475 

024 

020 

038 

non 

021 

WOO 

002 

010 

nw 

021 

038 



Open 

Sett price 

Change 

Wgh 

Law 

EaL vri 

Open Int 

Jun 

94.19 

94.15 

-0.03 

94.19 

94.12 

25294 

91234 

Sep 

94,49 

94.42 

-028 

94.49 

94.41 

9250 

44242 

Dec 

94.69 

9420 

-009 

9429 

9428 

12201 

33201 

Mar 

94.78 

94.65 

•013 

94.78 

94.64 

7.631 

37224 


i HOItTH gUW O DOLJLAB (UFF5)' $1m pohft3 of 100% 


MOpon tatoran 090- are to- pramua day 
■ BJHOWIK OPTIOMS (UFFg DMIm points ot 100% 


Jim Sep Dec Jim Sep Dee 

0.12 0L35 083 0.11 0.11 0.12 

084 020 038 028 021 020 

082 0. 10 023 051 038 082 

, Cats 3022 PUH 0005. ftoadMa day's opal K. Cola 107710 Pus 137018 
WttS FWAtaC cw»nom (UFFg gfr inn potato of 100% 

caixs — pure 

Jim Sep Dec Jun Sap Dee 

0.14 026 029 0.06 009 020 

084 014 016 021 022 032 

082 087 088 044 0/10 049 

, Cals a puts a FteM fasTe opan ml. cab, 4BB An en 


x * Currency Fax - FREE 2 week trial 


BASE LENDING RATES 


Adam a Compeny 
ASed Trust Bank .. 

AS Bank 

•Henry Ansbactw. 
BarkotBorada 


Bank at Cyprus 

Bar* al Ireland.. 

BenkoHndlB 

BankafScaaand ... 


Open 

Sett price 

Change 

Wgh 

Low 

EaL vri 

Open InL 

9528 

95.85 

-007 

9528 

9622 

640 

4579 

AS at 

9&J24 

-009 

95.28 

9528 

134 

2108 

9425 

9422 

-0.11 

9425 

94.83 

133 

1525 

9421 

9428 

-0.12 

94.81 

9420 

128 

631 


CL Bar* Nodariend ... 52S 
CttbankNA .828 


The CopparahB Bank. 525 

COutis&Co 52S 

Credt Ly o nnais 535 

Cypres Popular Bata _525 


* 

Duncan Lawte 525 

Beater Bank Utritod— 625 
Flnandal& Can Bank.. 6 
•Robert Oaring 4 Co — 50S 

•Gutaneeshtahen — Z 528 
Haltib Bank AG Zbridi . 52S 

•Harrlma Bank — 52S 

Heritable & Gen bwBk 525 

•HI amuel...- — 525 

C. Horae & Co 525 

Hanyang 8 SranghaL 525 
JuRan Hodge Sank — 525 
•LeqpcM Joseph a Sens 525 

Lloyds Barit- 525 

Megtet Ban k Lid 525 

UdandBoA 52S 

•UomlBariang 6 


frcTi Cnsr! Ar.slysis Ltl 
7 S.'.j; S':-:r:-!. Lor.icr. IV J B 7 HD, UK - 
cjrK/^go rate specaksts lor over 20 ve 


* ftadnaghe Guarariee 
Onponan Limkad lain 
kx^tosufaxtaeda 
abaMngkataufcn. 8 
Royal Bk of Seetand _ 525 
•6M01 8 Wtanan 8« . 525 
Standard Chartered _ 525 

158 625 

•LMtadSkOfNnnaS — 525 
Uni* Tiust Bank Pta - 625 

Western that -525 

WNfeaaoqy LakSan 525 

YWkatire Baric -525 

• Members of British 
Merchant Banking 8 
Securities Houses 
Aesodrilan 

* tn B U r ik ti efc atign 


+■ e 

.'A4A( 

■ MrApt » 

.WWW. 


Anne Whitby 
Tel. 071 -734 7? 74 
Fox: 07 I -43"? 4946 


CUBRKWCy MAN4C8MENT 
COKPO RATION PLC 
*1»to*rJta»t 
77 Loudon Wall 
London EC2M 3ND 
Tet 071-3829743 
Foe 07 1*382 9407 


•FOREX ‘METALS ‘BONDS ‘SOFTS 

Objective analysis f or professional investors 

0962 879764 

Fcnncs House. «2 Southgate Street. W inches.* • 

H-wts 5C23 SEH rv_T 0424 774067 


(JppJJf ix* 1^52) ii 


w 



LONDON STOCK 


is Dealings 


Detatfs of business done shown bekw have been taken with consent 
front last Thursday's Stock Exchange Official Ust and should not be 
reproduced without permission. 

Details relate to those securities not included in the FT Share Information 


Unless otherwise Indicated prices are In pence. The prices are those at 
which the business was done In the 24 hours up to 5 pm an Thursday and 
settled through the Stock Exchange Tafaman system, they are not In order of 
execution but In ascending order which denotes the day's highest and lowest 


British Funds, etc 


For those securities In which no business was recorded In Thursday's 
Official ust the latest recorded business In the four previous days Is given 
with the relevant date. 

Rule 535(2) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Republic of Ireland Ud. 

t Bargains at special prices. 4> Bargains done the previous day. 

Leeds Pcnramni Buadng Society Cahsed 
nrgRMNta 2003{Rag MuRCIQOO) - El 03 *4 
(1 !Mr34) 

Loads Permanent Briefing 3octety Criarad 
Fttg Rto N» 2003 CBrE Var) - £103% 
048*94 

Uoyda Bonk PLC 7 V* Subaru BUS 
2004(Bl£Va»tous) - £95% >2 -ATS * 

Lloyds Bar* PLC 9%% Stoord Bda 2023 Ipr 

cv«j-£iit%%nsi*94 

Lloyds Bar* PLC 11%% Subord 8r*M Ms 
19Sfl(BrClOOOO) - El 10% (141*94) 

Lonrtw Ftomca PLC 6% GM Cm Bda 
MW&CVar*) - £1<E% 3 % (158*94 
McOonrifa Corpora ti on Zero Cpn Mss 4/6 7 
96 (Br £ Var) - E8?% (118*94 
MEPC PLC 10%% Bda 
zoazaci ooosiawcj - ctosa (tsudM 
Marks ft Spencer Finance PLC 7%% Gtd Nta 
T99S (Br £ Var) - £101 12 I1SM94) 

MKTQMk Intern a tional Inc 3.5% 80s 
2001{BrS10CXW) - S108 100% «H (158*94 
Municipally Finance Lfl 0 * 2 % GTd Nts 1997 
(Br CVS) - £107*2 % <1SMr94) 

National Grid Co PLC 7*s% Bds 199S {Br £ 
Vaft-etmA (11WM4) 

National Row PLC 6%% Bds 2003(Br$ Varf 
-$BU (158*94 

Natfcnol Power PLC 10%% Bds 200! (Br 
ciaooo&iooooo) - ci 14.45 
National Wssto*»car EUr* PLC 11%% Und- 
Subttta CiOOOtCnv to PrfJRM - £114 
cWyB*,1 


Daniy T3%H ax 2000/03 - £133 
Bccnequar 10*2% 30c WOS - £124 

Corporation and County 
Stocks 

Q k i i duJmn Com 3% Sth 1947pr after) - 

02% (16M94) 

fiSrmSnghajn Carp 3% (1902) 1832(ar alter} - 
£34{16MtS4) 

KmSnoham District Council 11 *2% Red Ste 
2012 - £130 (148*94 
BnetoftCity ofl 1 1*2% Red 5th 2008 - £125 
(148*941 

□udey Metropolitan Borough Cotoc87% Ln 
Stk 2010 (Reg Ini CtetaKP/R - £204 9%* 
LMceaaar Oty Council 7% Ln Stk 
tot CsrtaXP/R - £28% 

Salford FCHy ot) 7% Ln Stk soiOiReg im 
OrnXP/P) ■ CSV 1} (16Mr94) 

UK Public Boards 

Agncuftim Mongaga Corp PLC 5*2% Oeb 
Stk 93/85 - £96 (1611*94) 

Forth Porta Authority 3V% Funded Data ■ 
£424 

MatropoUan Water ft/Mropcfttan Water 3% A 
SIX 03/2003 - £72*2 

Commonwealth-Government 

South Australan 3% Cana bn Stk i916fer 
after) -£36 <148*94 

Foreign Stocks, Bonds, etc- 
(coupons payable in London) 

AALP4JJQ PLC 13% Bds 2015 (Br 
SSOOOftlOOOOO) - £1401 73 75 
Abbay National Starting Capital RjC( 0%% 
Subord Gtd Bds 200* IBr C Var) - £113% 

(108*94) 

Abbey Manorial Storting Capital PLC1 1*2% 
Subord Old Bda 2017 ■ £128% (10Mr94) 
Abbey Naknal Treasury Serve PLC S%% 

GM Nts 1995 (Br SVor } - S100*e4 
Abbey National Treasury Sew PLC &%% 

CM Bds 2003 (Br $ Vjrj - $05% (MWr*4) 

Abbey National Treasury Sen PLC 7%% 

GW Nte 1096 (Br C Var) - £102)2 (15Mrfl4) 
Abbay National Treasury Sons PLC 8% Gtd 
Bds 2003 (Br £ K» - £100 V X 1 % A 
Acer tocorponnad 4% Bds 2O01[BrSl0oaa) - 
£168 108% 168.95 170 
Associated Britan Porta Hdga PLC 10%% 
Bds 2015(Bi£10000aiOOOOq - £116% 
(108*94 

BAA PLC 11V% Bds 2016 (Sr 
000004100000) - £136*2 (14Mrfl4) 

Barclays Qjnk PLC &5% Nts ?004<BlCVart- 
Ous)-G91*2 V (I4 Mi84) 

Btedays Bank PLC 7.875% Undated Subord 
Nte (Br C VSr) - £97.2 [16M94I 
Baciays Bank PLC 9% Farm bit Bearing 
Capita BdS(8r£ Var) - £97% (10*94) 
Bactaya Bank PLC 9J75% Undated Subord 
Nte - £105*2 (168*94 

Barings PLC 0V% Perp Subord Ms (BriVari- 
oub) - ES2% 3 (108*94) 

Sue Ctrcta Industries Capital Ld 10*2% Cm 
Cap Bds 2O05(a£5O0O8iaO0OQ - £136% 
(16M84) 

Bradford 6 ESngtoy Bidding SodetyColarad 
Fn^heNts 2003(Reg MiitrCIOOO) - £104 
Bristol 8 West Buteteig Society ioV% 

Subord Bda 2018 (Br C V*) - El 10*2 
(141*94 

British Aerospace PLC f0%* Bds 2014 
(BrClOOOOA 100000) - Cl 14% 

British Afevmys PLC 9%% Nts 
1907A£1OOOft1OOOai - £100% (18Mr94) 
British Airways PLC 10%% Bds 
2008(0^1000810000) - £117% (14Mr94) 
BUfclh Qae PLC 7%% Nts 1997 IBr £ Via) - 
£102% (141*94) 

Bntteh Goa PLC 7%% Bds 2000 (& E War) - 
£101% 

British Gas PLC B%% Bds 2003 (» C Var) - 
£103,'* 

British Land Co PLC 8875% Bds 2023 (Br £ 
Var) - 096% (1»W4) 

British Land Co PLC I2%% Bds 2018 
(Br£ 10000*100000) . £130825 (I IMr94) 
British Telecom Ftotoce BV 8%% GM Bds 
1989 (BrtSOOO&SOOOO) - 3109% (168*94 
British Tetecerramsacabons PLC Zero Cpn 
Bds 260D|8rfiaCOt1600Q - £64% 5% 
British tdoconrnurtcaUons PLC 7%% Bds 

2003 (Br E VSn) - £98% 8.15 (168M4) 
Bunrah Casual CepitaWareey) Ld 9%% Cnv 

Cap Bds 2006 (Rag £1000) - £153% * 
Commercial Union PLC 10%% Gtd Bds 2002 
O' C Var) - £114575 (14Mi94) 

CoohMn Finance NV 57,15 Gtd Red Cnv Prf 

2004 (BrShs 185) - £133% (15»*94) 

Daly Ma* & Ganerte Trust PLC BV% Each 

Bda 2005 (Bi£l000*5000) - £170 (16M>84) 
Dawson Rnanoa NV 9%% OtdRodCnvPri 
2004(CenaToar £1 IQ • C96% 100*2 
P6WW4 

Depta Finance N.V. 7%% GW Bds 2003 (BrE 
Vo i> - £95% % 11 

Dixons Group iCaprtaQ PLC 8%% Cnv Gtd 
Bds 3002 (Br£5000*50000) ■ C94% 5 
(ISMrW) 

E» Enterprise Fburnco PLC 8%% Otd Each 
Bds 2006 (Reg £5000) - D09'« 7 
St e nterprise Finance PLC 8%% Gtd Exch 
Bds 2006(B^S000810000n - £104% % 
p5kW4» 

Far Eastern reriSe Ld 4% Bds 
zoooKkSiiUQO) ■ It,; 

Forte PLC S%% Bite 1997 |ft G500C9 - 
£102% (ISMrfWl 

FuF Bark Ld i%% Cnv Bds 2002(8^5000) - 
3107,% (L4Mr94| 

General Motors AccvfH Carp Canada 0% Nts 
3/1 1/94 (BrEC 1000810000) - EC100V 
100% 

General Moim Corp 10% Ms l£N<8r ECU 
Van) -EC1007 3 101% 

Gucsantocd Export Runcr Carp n.C 9%% 
GW Bds 2008 (Br C Vjr) . £114% (15Mi94) 
Gunrwss PLC 10%% Ms 1997 IBr £1000 8 
100CCI - £110% i14MT94) 

Gumass Finance BV 12% Gtd Nts 
(996(Br£ianst(U00) - C(O0% (144W4J 
HSBC HokSngs PLC 9%te SUDOTd Bds 2018 
IBr £ Vart - C109 (I IlMi) 

H*L»x BuMna Society 6»2«e Bds 2004 
(Bit 1000.10000.1000001 - C92 (11M94I 

HoBUx BuScXng Sadery 7%% Nts 19W (Br £ 

Var) - £102% % (1«iW4) 
nontax BuWSna Sodety 11"* Si/jord BUS 
2oi4(Bri!faoinsiODOon-ei2i%(i4Mi94i 

HdlUx Budding SockXy Colnrod FKg Rto Nts 

2003 ®r C Vod - £103% 1tU*2 ri!Mi94) 
Hanson PLC 9'jta Cm Subord 2008 (Br 

CVori - £120vlS4 >4 

Hanson PLC 10 %N< Bda 1097 IBr C Van - 
niO% (I5 MiB4) 

Hansen Trust PLC 10H Bds 2009 (BrCSOOO) 

- £110% (144*94) 

Imports Cbonvcol tedustrios PLC 10%, Bda 
2003(Br£l0008TOOOO) ■ £113% (16Mr94) 
Irawraborul Bank far Aec & Dm 9%te Bds 
2007 l0r£5OCO) - Ej 13% |IOMr9J) 
bnemstesial Bar* (or Rtc * Dov 10%H Nts 
IS»4(BrC 1000*10000) - £101% (1SMrS4| 
IntemobonJ Paper Co 9%% Nts 1994 
(Brmioaoo&soojE* - frioo^ too 8 
(15*594) 

BafyfRepiXdc oh 3%% Nts 2001 - V94% 
ttvHNapuOac at) 9%vj Ms 
19«lBrS 100008100000) - C111%4 
t«%4 

•talrinepkiblic a* I0%*. Bds 2014 
(Br£1 0000850000) - £119li (t*M«94) 

Japan Devekxxnent Bonk 7% GW Bda 2000 
(Br £ Vari . £99% 

Japan Fin Corp tor Mncfeaf Errtp. 8%% Old 

BUS 20tWBrt.1000 & 10000) ■ £33*2 

(151*91) 

Ladbrovja Group PLC 5%% Subord Cm Bds 
2004(8rC10008SO0l]) - £133% 

Ladbroke Group Ftnanw(J«ertLd 9% Cnv 
Cap Bds 2005 lBl£5000&1 00000) - £99% 

% (151*941 

Lastno PLC 9%% Ms 1989 (Br £ V*} - £103 
(141*94) 

Leeds Permanent BuUng Society 7%% Nts 
1997(BlCVjr) - £102% (tSMi91) 

Leeds Permanent BuftSng Sodety 7%% Ms 
I99B (»C Van - £101 (151*94} 

Leeds Pbr ma n un t Butidbig Sodetv 10%% 
Subord Bda 1998 (BrCMOO) - £110 % 


Nattomride Bukteig Sodety 8%% &toard 
Ms 2018 (Br £ Var) - £96% 7 (141*941 
Nippon Teletraph and T e l e phone Corp7%% 
Nts 1996(Brfl/or) - 3103.55 104 n5I*9q 
Northumbrian Wxtw Group Ft£ 9%% Bds 

2002 (Br £ Var) - £107% (141*94) 

Norway gangdom oq &375% Nts 2003 (Br 

SCVte) - 8003 

Osaka Gas Co Ld 8.125% Bda 2003 {Br £ 
Vat) - £1G2'« (16Mr94) 

Pentrnuar A Oriental Steam Nav Co 4%% 
Cm Bds 2002lBrtt0a0810a0(B - £134 
Prudendd FWanee BV 9%% GM Bus 2007 
(BrCSOOUIOOOOO) - £108% 9% (141*94) 
RMC CapU Ld 8V% Oi* Cap Bds 2008 P*r 
£5000850000) - £138% 

RTZ Canada tec 7%%GMBds 
1998(Br£5000&t 00000) - £100% % 
fMMMJ 

Red and Cdphd PLC 7%% Cm Bds 
20d2(BrC1 000810000] - £105 (!4Mr94) 
Hobart Fleming hid Fhaice Ld 9%% Perp 
Subord Gtd Nts (&■ £ V*) - £93% (10*94) 
RothschMs Contteittflop Ri4C.QLit9% Perp 
Subord Gtd Nts {8r£Vertou9 - £90*7 
HSMf94) 

Royal Bonk of Scotland PLC 6%% Bds 
2Q04(Br£Vara) - £91 A3 
Royal Insurant* Hkjgs PLC 9%% Subord 
Bds 2003 (Br E Var) - £104% 

SflJrebuy (J-XChamd btendi*Ld 
8%%OnCap6dx aXSfSr £5000310000(9 - 
£132% 

Steova Navigation Corpcnnfon 3.75% Bds 

2003 (Br 310000*100000) - 3104% 105 
(188*94) 

Soctate Gemate 7875% Pwp Subord Nts 
(Br £ Vs) - £97% % (151*94) 

South West Water PLC 10%% Bda 2012 (Br 
£100008100000) - £121% (14Mr34) 

Stete Bank or New South Whies Ld 8%% Ms 
l99«BrS 100081 OOOOCB - 3105 105% 
(117*94) 

Swnsk Exporttoedt AB 12% Nte 
(994<&eiaooi!oooc) - cicij < 158*04 
SwadenQtfeigdom at) 11%% Bds 1895(Br 
£3000) - £105)1 

Tarmac Fteanoa pwaey) Ld 9%% Cm Cap 
Bds 2006 (Reg £1000) - £1 15% 

Tate ft Lyte Int Fin PLC 5%% Gtd Bda 2001 
IBr £5000) - £88% (14M94) 

TateftLyta HFte PLCVTateSLyte PLC 5%% 
TftLBFnGdBds 2001 (Br) VWWI.T&LPLC - 
£88% 90 (141*94) 

Tosco PLC 8%% Bds Z003(BrfVar»)(PyPrfl - 
£104% 5 (168*94) 

Tesco Capital Ld 9% Cm Cap Bds 200S(Reg 
£1) -£124 % 

Thames Water PLC 9%% CnvSubORlBds 
2006(Br£5000850000) - £139 (1QMrS4) 
Thanws Water UNlbss Rnroe PLC 10*2% 
GM Bda 2001 - £115,*. (148*94) 

31 Intamnnanri BV 7%% GM Bds 2003 (Br £ 
VBr) - £88fi (158*94) 

Treasury Corporation at Victoria 8%% GM 
Bds 2003 (Br £ Vat) • £1052 
Tixig Ho SM En Mpte a Crap 4% Bds 
20Ol(BrSi00(M) - 3115% 

U-Mteg Marins Transport Corparadonl %% 
Bds 2001(Rag te Mult 31000) - 3100 
(19*94) 

Unilever PLC 7%% Nte 1988 (Br £ Va) - 
£102% (11Mr94) 

Wortxri]fS.GJ Group PLC 9% Perp Subord 
Nte (RapNteBrC) - £83 (151*9^ 

Welsh Water PLC 10%% Bda 2002 (Br 
£5000870000) - £11455 
Woohrteh BJdtey Soctety 11% Ms 
1996(Brfn0O0&1O0aq -£110*2 % (I6fc*9« 
WoaiMch Bulking Society 10%% Subord 
Nte 2017 (& £ Vte) - £110% (16Mr94) 
Abbey NsUonal Treasury Sarvs PLC GM FHN 
1999(B4Vars) - S99J3 (158*94) 

Export Oero lopm a K Corp 3C 200m 5% DeM 
testrumsnt 22712197 • C9SJ* 95^4^ 

SBAB JCIOtn FHg Rte Nb 22712795 - CIOOll 
(15Mi94) 

Sony Capital Corporaiton 3250m 5% Nte 227 
77B6 - S98 98% (11Mr94) 

SwodonfHrigdore of) 0500m 7%% Ms 07127 
97 - £102% % (167*94) 

SwedonOangdom of) C35Qm 7%% Bds 2877/ 
2000 - C101 V (151*94) 

Sterling Issues by Overseas 
Borrowers 

American (*wMs Inc 12%% UnsLn Sth 2009 
- £129 (15Mr94) 

Bank at Greece 10V% Ln Stk 2010(Br) - 
£108% 1141*94) 

Barbados (Goverrvrwnt ol) 13%» Ln Stk 
2ntS(Reg) - £134 % (118*94) 
DamwriigangcJom art 13% Ul Stk 2005 - 
£138%* 

European tevabnent Bank 9% Ln Stk 2001 
(Rag) - £109% 

European arrestment Bank 10%% Ln Stk 
3004«Br £5000) - £120% (141*94) 

European tewMmom Bar* 11% Ln Stk 
2002(Reg) - £122%# 

Kydro-Ouabee 15% Ln Stk 201 1 - £166% % 
(118*94) 

tail 14%% Ln Stk 2016- 


iodandpijpubic af| 
C15fi% (168*94) 
Inland I2%% Ln SI 


!%% Ln Stt 2008fReg) - £137% 
(151*94) 

Makiysfci 10%% Ln Stk 2009(ReeS - £1 16 

(141*94) 

Malaysia 107«% U Stk 2009(8r) •£> 16*2 
(148*94) 

New Zeeland 1 1 %% Stk 2008fftegi - £127.45 

% % (158*44) 

New Zealand 1 1 %% Stk 2014fRog) ■ Cl 34% 

5.7 (158*94) 

PeaoleCKi Moxlcanos 14%S Ln Stk 2006 - 

£129% 

Portugtftep ofl 8% Ln Stk 2018©r) - £109*2 
(14M94) 

Prijvmce rte Ouabec 12%% Ln Stk 2020 - 
£130% 56(148*941 

Spoln(Ktegdam ot) 11%% Ln Stk 20l0fRag) - 
£132% (188*94) 

SwodenfMrxjdam oq ,35% Ln Sa 
SOltXRag) - £147.45 

Listed CompanIes(excluding 
Investment Trusts) 

ASH Capita Fteanos(Jvsey]Lri 9%% Cm 
Cop Bda 2006 (Hag Urtte lOOp) - £83 
Abantoan Trust PLC Wte n eub far Otd - 52 
(118*94) 

Ab q rdewi Trust PLC A Wte to Sub tor Old - 

57 (111*94) 

Abtrust ASH Fund Sha Ot NPV(Dalw Bond 
Pdrttofto) - 31566^ 

Adsoene Group PLC 7%% Cm Rad Cun Prl 
£1 -251 

TVthan Hume imarnadonte PLC 7% (Nat) Cm 
Cun Red Pit £1 . 100(158*94) 

Albert FHhor Group PLC ACH (10:1) - 30.43 
Alnandar ft Atamoar Serrtcea Inc Shs of 
CUaa C com Stk Si - £12 (138*94) 
Ataxaidsr* Hdga PLC ‘tnpsLVKM lOp - 
25(168*94) 

Atexcxi Orouj PLC &2fip (Not) Cm Cum Fled 
PH tOp - 72%$ 7** 


FT-SE ACTUARIES INDICES 

The FT-SE TOO, FT-SE MW 250 and FT-SE Actuaries 350 indices aid the 
FT-SE Actuaries Industry Baskets axe calculated by The International 
Stock Exchange of the United Kingdom and Republic of Ireland Limited. 
© The International Stock Exchange of the United Kingdom and Repubfc 
of fretand Limited T9S3. M rights reserved. 

The FT-Actuaries AB-Share Index Is calculated by The Financial Times 
United in conjunction with the Institute of Actuaries and the Factfty of 
Actuaries. © The Financial Times limited 1993. All rights reserved. 

The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
FT-SE Actuaries Industry Baskets and the FT-Actuariea AB-Share Index 
are members of the FT-SE Actuaries Share indices senes which are 
catenated in accordance with a standard set ot ground rates established 
by The Financial Tunes United and London Stock Exchange in cor^unc- 
teon with the institute of Actuates and the Faculty at Actuaries. 
*..!FTtSE” aid “Footsie” are |otnt trade marie and service marks of the 
UMldtftSBKk Exchange and The Financial Times Limited. 


ACttH-yore FlC AOR (1:1) - tU (108*9*) 
A*ed-Lyon»PLCS%%Ct«iPfiei -86 
(16M94) 

AMod-Lynru PLC 7%% Cun fVf ci -87 
AtHtf -Lwra PLC 11%% Dob SBt 2009 - 
£131%n6**94) 

Aifled-Lyone PLC e%% UntLn3tk-C70 

P 88*94) 

Atead-Lyona PLC 7%% Una Ln Sk 93708 - 
£99% 

AHed-Lyons Ftnancial Services PLC8%% 
GMCmSubardBd^aoe RegUuftiCIOOO - 
£1i7%a 

Afad-Lyom Rnandaf Sonicaa PUSB%% Gtd 
Gm Subord Bda 200B(Br £ Vn) - £118 

1 16% (14I&94 

Ainatt London fttjtetMaa RC 7%% 1st Mtg 
Oeb Slk S(V95 - £39% (168*94) 

Ateuif London Propertios nC 10%% lei 
Mlg Dab SBC 94789- £101 (158*94) 

AMa PLC &fi% Cm Cun NonJrtg Rad Prf 
£1-835 

American Brands Inc Sha Of Com Stk S3. 125 

-sai%* 

AnOws Sykes <aoup PLC cm PM 50p - 94 
Andian water PLC S%% tedax-Uakad LnSBc 
2006(5.1024%) - £138% 9% 

Anglci-Eaatem Planlatlons HjC Woiaik to 
sub tar Ord - 27 (188*94) 

Armour This* PLC 10%% Una Ln Stk 91796 - 
£97 (118*94) 

Asda Property Hdga PLC 10 5718% lat Mtg 
Dab Stk 2011 -ei 10 058*9*} 

Aaaoctatad British Foods PLC 5%% Una Ln 
Stk 8772002 SQp -41 (168*941 
Associated Mdsti Foods PLC 7%% Una Ln 
Stk 87/2002 50p - 47 (188194) 

Attereods PLC AOR (5:1) - $8%$ S3$ 
Atwoods (Rnanoa) NV B%p GM Red Cm Prf 
5p - 109% .45 % 10 % % 

Autantead Soeuify0*dBa) PLC 6% Cm Cum 
Rad Prf £1 -78 

Automated SocurtytHdgs) PLC 6% Cm Cun 

Red Prf £1 -72 

A*0#PUC I0%% tins Ln Stk 98/08 • CIO/ 
B-A.T Industma PLC ADR prl) - 314^*37* 
BBA Group PIC 10% MS* 08764 -£99% 

(15Mr04) 

BET PLC ADR (4:1) - 37S7473 (15MfS< 

BCC PLC 3^6%(Fmy 5%%) 2nd Cun Pit 
Stk £1 -90(168*94) 

BM Group AC 4. Bp (NeQ Cm Cun Rad Prf 
2DP-4B 

BOC Group PLC 12%% Uns Ln Stk 2012717 

- £138 % % 575 % (158*94) 

8 TP PLC 74p94aQ Cm Cum Rad Prf lOp - 
212% 3 4 (167*94) 

STB PLC AOR (4.-1) - CtSA 
Bangkok Imostmenta Id Pig Rad Prf 3001 - 
$115 (14M/94) 

Bank at *e*and(GaNamar & Co at) IMta NCP 
Stk Ss A £1 ft £9 UquMtekM - £13,M 
Bark of Wttaa PLC 13%% StMord Urn Ln 
Stk 95797 - D07 (158*94) 

Samar Homaa Group PLC Ord Kftj- 119 
Barclays PLC AOR (4:1) - 333% ^98887 
4240858 

Barclays Sank PLC 12% Uns Cap Ln See 

2010 - £127% 

Buctays Bar* PLC 10% UnsCapLnSdi 
2002/07 - C148i (158*94) 

Bvdon Group PLC 7 -26p (NaQ Qw Rad Pit 
25p - 105 (168*94) 

Bardon Group PLC 3A6% Cun m Cl -48 
|10**94) 

Bordan Odup PLC tl^SpCum Red Prf 
2005 top - 114 S% 

Butegs PLC 8% Cton 2nd Prf £l - I0S% 
Barings PLC 9%% Non-Cum Prf Et - 129 
Bar & Walace AmcM Trust PLC CM 2Sp - 
619 (118*94) 

Buraw Hepburn Group PLC 7.75% Cun Prf 
£1 -95(168*34) 

Bass PLC ADR (2rl) - SI 58744/1 fia*9R 
Bass PLC 10%% Dab Stk 2018 - £123£$ 
4%<fr , 

Bass PLC 7%% UnsLn Stk asm ■ £99 
Bass Unastmema PLC 7%% Uns Ln Stk 92/ 
97 - £98% (148*94) 

Batway PLC 93% Cun Red Prf 2014 £1 - 
117(118*94) 

Bagman d-y AS *B* Non Vlg Sha MOL5 - 
NK157% 61B5 2 

Bai n mghamMMshtrea Bidding Soc9%% 
Perm Ini Q aakig She £1000 - CSS % % % 
4% 

Blackwood Horfga PLC 4.7% Cum Prf El - 
2S (168*94) 

Btadmood Hodge PLC 9% Cum Rsd Af £1 
-38 

Blockbus te r Ent artt tnntent Crap Sra Com 
Stk saio • 324% 5.64 (158*94) 

Bhie Okcte teduzMas n£ ADR (t:1) - 

S&364 

Boots Co PLC ADR (2:1) - £109 
Bradford ft angiey BuUng Soctotyl 1 %% 
Perm bit Bearing Sha £1 0000 - £119% 
Bradford A Bn^ey BuMng Soctety 13% 

Pam M Bearing Sha £10000 - £132% 
Bradford Property Trust PLC 10%% Cum Pit 
£1 - 127 (188*94) 

BraknefTFALHjOMgs) PLC Qrd25p - 
232% 

8raime(Tj:AJ JtXMdgR PLC "A" NoilV Old 
20p- 175>a 

Brad intenteHonel PLC 9% Cum Rad Prf £1 

- 97 (148*94) 

frent Walker Group PLC Wte to Sub lor Ord 
- 1 

Brent Walter Group PLC 8£% 3rd Nan-Cun 
Cm Rad 2007/10 £1 -4 
andon PLC 10%% Deb 90( 91798 - C99% 
(I58*9R 

Bridon PLC 6%H Urn Ln Slk 2002707 - 
£85% (158*34) 

Bridon PLC 7%% Uns Ln Stk 2002/07 - 
£94% (15MrfH) 

Brtsid Water PLC 8%% Cun tod Prf Cl - 
122 % % 

Briato) Water Hdga njC Old £i - £11.05 
Bristol Water Hdgs PLC 575% Cun Cm 
Red Prf 1888 Sha £1 - 213 
Bristol ft West Baking Soctety 13%% Penn 
tot Bearing Sha £1000 - £127 % 

Britannia BuUng Soctety 13% Porm tot 
Bearing Sha £1000 - £127% % 8 0 
Brrtetl Airways PLC ADR (HM) - S63A7* 
- 51 * 

arafeh Afcan AhaMdun PLC 10%% Dab 9Bt 

2011 - Cl 09 

BritMvAmartoan Tobacco Co Ld 8% 2nd 
Cun Prf Stk £1 - 87 (16MI9R 
Brmrfi Peirotoun Co PLC 8% Cun 1st Prf Ei 
-045 

BrttrfsSted PLC AOR (10:1) • $21% A % .66 
Brtxton Estate PLC 950% 1st Mtg Dob Stk 
2026 • £100% 

Srtxtom Estate PLC 10%% 1st Mg Dab Stk 

2012 - £122 (148*94) 

ftownOohn) PUC 5%% Soc Ln Slk 2003 - 
£80(158*94) 

BUgto(*F 4 ft Co PLC Ord Shs Sp • 48 
(118*94) 

BUmerfHPJrtoga PLC 8%% 2nd Cum Prf 
£1 - 121 (lBMrfMj 

BUrra(KPJMdgs PLC »%% Cum Pit Cl - 
126 (158*94) 

Bund PLC 7% Cm Uns Ln Stk 95797 - £100 
9 % 10 % 1 (158*941 

Bumah Castrei PLC 7%% Cbm Rsd Prf £1 - 
74% 6 

Bumah castrol PLC 8% Cun Prf Cl -82 
OiMriM) 

Bumdsne tovestmsnte PLC 15% Ura Ln Stk 
20077(2 - £125 (148*94) 

Burton Group PLC 8% Cm Uns Ur Sfc 10987 
2001 • £97 % 8 

Butte Minteg PLC 10% (NsO Cnv Cun Red 
Prf 1994 lOp- 3(181*9*) 

CeUfarrta Energy Co Inc Shs of Com SB< 
SOJW75 - Sl8% ^2 

Cdnadan Orers Pack Indudr Ld Com Npu - 
688 fliMiSR 

Capital ft Caunttos PLC 6%% 1st fthg Dab 
Stk B37Ba - E95 (168*94) 

CoriWs Grata PLC 448% IfteO Red Cm Pit 
1998 £1 -73 (158*94) 

Cardan Gamm a S u dttyM PLC ADR (2:1) - S29 
Gallon CommurtcaBcns PLC 7%% Cm 
Subord Bds 2OO70tog £5000) - £150% 

(108*34) 

Canon Oarrmunteattans PLC 7%% Cm 
Subord Bds 70073* £5009 - £148% 149% 
1158*94) 

CoUrpbar toe Sha of Com Stk SI - Si 10-8 
(158*9*) 

Cemex Corpor j non Shs of Com Stk S02S - 
$34% 

Chwtwood AAance Hktes Ld 8%% 1st Mlg 
Oeb St* BS/S6 - Ctofli OTM9R 
Chdtartiam ft Qoucasasr BuM 8 k 1i%% 
Perm M Baeitig Sha £50000 - £122 
(168*94) 

CWtogton Corporation PLC 9%% Cum (ted 
1WC1 -85 

ChOngton Cor po ration PLC 9% Cm Una Ln 
Stt 1399 - £87 

City Star Estates PLC &25% Cm Cun Red 
Pit Cl - 71 

CtayMM PLC 9-5% Subord Cm Uns tai Stk 
2000/171 - £36 (168*94) 

Ctevdand Place Hddtogs PLC 5% Red M> 
Stk 2000 - £88 (158*34) 

Coastal C oraxa don 9hs ol Com Stk S833 V 
3 - 331% (148*94) 

Coats Patons PLC 4%% Uns Ln Slk 3002/07 

- £72% (158*94) 

Coon Rarerts PLC S%% Uns Ln Sk 2002707 
-£94% (148*94) 

Coats UyeBa PLC 40% Cum Pit Cl -70 

(16MI94) 

CohenfA.) ft Co PLC Nen.V -A* Old 20p • 

378 

Cone Vdley Was Ld (0% Red □* Sft 967 
08 - £108 (168*94) 

CommocU Union PLC 8%K Cum tod Prf 
£1 -113% %4 3%* 

Commertsfll Union PLC 8%% Cum tod fkf 
£1 - 121 % % 2 

Co-Opendh/a Bank PLC 925% Nan-Cun tod 
Prf£1 - 121% 2% 

Cooper (Fredutck) PLC S5p (Net) Oiv Red 
cum Pig Prf TOp - 36 tOfl 
CouaUda PLC ADR (1:1) - £5/M (118*94) 
CoutaJdo PLC S%% Una Ln 3*94/90 - 
£94 

CoutaJdS FUjC 7%% Uns Ln Stk 200V05 - 
£101% (148*94) 

Coumtoy BidAg Soctety 13%% Penn toter- 
« Beumg Shs £1000 - El 18 % 

Cnxte Mamaokatei PLC 6JS% Cun Prf El - 
88(1687134) 

Drty Mai ft Gmraa) Tkuot PIC Otd 50p - 
14^ 

□dgety PLC 495% Cum Pit £1 - 75 
(158*94) 

Debenhams PLC 7%% 2nd Deb Stk 81/98 - 
£99% (168*34) 

Debenhama PLC 7%% Una In Stk 20026)7 - 

£91% (158*34) 


□ebanhams PLC 7%% Una Ln Stk 20026)7 - 
£80(158*34) 

CWa PLC 10%% Deb Ste 96738 - El 02 

(158*94) 

DmrerfKJA) PLC 10%% Dsb Stk 2017 - 
£121%(t1Mr94) 

DeahuaL PLC Ord lOp - 65 
Oaw Corp Com Slk $1 - S83% P48894) 
□uteop Planwkxra Ld 6% Cun Prf £1 -71 
Eectesteatteri btetawea Group n£ 13% Dab 
SOI 2019 - £135 40 (158KW) 
a Ora 8fjnaiCipli*Mnn Co PLC Ord 10p - 
840 5(168*94) 

aystWbnbtedort PLC Ord 2&p - £&1 

(158*94) 

Ettwb PLC 62Spptap Cnv Cun IM Prf 5p 
-82% 3 

Engttah Ctana Cteys PLC AC*1 (3.1) - 
$23.124229 H 38*9*) 

Engtsh Property Corp PLC 0%% 1st Mtg 
oeb Stk 97/2002 - £105% B% (151*94) 
Enmpris* OC PLC 11%% UnsLn Stk 2016- 
£127% 

Bksacrl(U4jacteMn^dtebiX^eSSer 
BtPsg}SKla- <46% 47.10 SK363 3 % 4 4 
.79025 5 .16 6% %B%%%9%% AS JS 
70 1 J .68 685 

Euro Disney GXXA. Sha FRIO (Depoa/t a -y 
Hacalptte - 385 6 BO 1 5 % G07 400 400 5 
25 

Eua Disney SLCA Shs FRIO pr) - FR34J 2 
A .41 .426 % ^75 45JS8.7%ABAJ3 
EuratUHMt n.C/EuutunMl SA Units (1 EPIC 
Ord 40p ft 1 ESA FRIO) (Br) - FR46% 
(168*94) 

Euotunmt PLCTEurotunmt BA Uteta 
(Stoovuii >B 4a iXK$ - ESA 125 FR48.12 
.134 St 23896 -3 JS 
Eurotumel nxVEurebjmal SA Fntk 
WM1 EPLC ft ISA WntoSub tortMts) - 

Budtuvisi RjCTEurotannel SAFndrWto 
pemam Inscribed) - £028(118*94) 
Ex-Londa PLC Wuranta to sub tar Shs - 26 
(MMr94» 

fteat Ctecago Corp Com Stk 35 • C33% 
(168*94) 

F*st tsarian Fund tnc Shi at Com Stk 30(01 - 
£64694 

F)nt NaBona Bukftng Soctety 11%% Perm 
tot Bearing Sha £10000 - CI07% (158*34) 
Rrat Naflonat ftoanca Oup (KC 7% Cm 
Cun Rad Prf £1 - 160 (168*94 
Fishguard ft Roasts* R*s ft Ftora Cd3%% 
Gtd Prf Stk - £42 
Fbona RC ADR (4:1) - 38% 
fteons PLC 5%% Uns Ln Stk 2004/TB - £81 
(158*94) 

Rtzwteon PIC 6%% Cun Prf R£1 - 38 
(148*94) 

Fofioas Group PLC OM Sp - <7 (168*94 
Forte PLC 9.1% UnsLn Stk 0572000 - £101 
Fartnum ft Maecn PLC Ord 81k £1 • £52 
{141*34 

Fltancey TtoMa PLC 4%% Cm Cun Fted Prf 
£1 -83 (117*94 

FrisNfty Hosate RX 6% Cnv Cum Rad ftf n 
-118 

/ Hotato PLC 7% Cnv Cun Red Prf £1 




O.T. Chte Growth Fitod Ld CM 5001 - £27% 
26% 

Ganarrf Acradsit PLC Y\% Cun tod Prf £l 
-106% 7 (168*94 

Gsnsal Accident PLC 6%% Cun tod Prf £1 
- 122 % % 

General Aoc FhaftUto Aasc Corp PLC7%% 
Uns Ln Stk 9SJB7 - £98% 

Genual Beckto Co PLC ADR (1:1) - 34.88 % 
(168*94 

Geatetnar Htop PLC Orf Cap 2Sp - 1 70 
Glaxo Croup Ld 8%% Urm Ln Stk 86706 SQp 
-48% (181*34 

Gtoxa Oeup Ld 7%% Una Ln 81k 85796 BQp 

- 48% % (148*94 

Gtynwed IntemSIonat PLC 7%% Cun Prf £1 

- 66 (15Mi94 

Oymrad totemaaonte PLC 10%% Una Ln Stk 
94700 - £102% (168*94 
Grand Metropofitan PLC 4%% Cun Prf £1 - 
52(168*94 

Great Portland Estates PLC 9.5% 1st Mlg 
Deb Slk 2016 - £1 12% (148*94 
Great IMvarete Stores PLC S%% Rad Una 
Ui Slk - £62 (148*94 
Grearafti Group PLC 8% Cun Prf £1 - 1 14 
(188*94 

Gnaanteb Grad) PLC 11%% Dab Ste 2014 • 
£132 

QeenMs Group PLC 8% tod Una Ln SBc > 
£91 (158*34 

QeanMs Group PLC 9%% tod Una Ln Slk ■ 
£101% (118*94 

Greanafs Group PLC 7% Cm Subord Bite 
2003 (Ratf - C116 0 -08 % % (168*94 
Gresnafts Group PLC 7% Cm Subord Bds 
2003 (B4- £112% 1l4(m*94 
Gutman PLC ADR (ST1) - S3&15 % % 
Guinness FUght Gtotiai Stniegy Fd Pig Rad 
Prf 30.01(Euo Mgh Inc 8d Fcf - £2353 
(148*94 

G^rnass F|^a Qabal Strategy Fd Pig Had 
Prf Saoi(dobte Band Fuid) - 330*3 
(111*94 

Gttemass F«oftt GtotMi Strategy Fd Wg Red 
ftf SOLOHOcbte rttfi too Bd F<0 - 325 
(158*94 

Gufemaes Faght Gktete Strategy W Pig Rad 
Prf 50.01 (GKAStefteig Bond Fd) - £11.77 
(158*94 

Gubmase F8^rt Glob* Stodagy « Pig Had 
Pit SOJJIJMarwged Curancy Fiax$ - 
£2&55770» (158*94 
HSBC Hdga PLC Old SHIO (Hong Kong 
Rad - SH94J82 6.1832 30036 7JB06 % 
%%. 74J133 8% A1 1683 
HSBC tftdga PLC 11 j 8B% Sdxad Bds 3002 
(Rag) - £105 10 /. 

Halifax Bitedtog Sodety B%% Perm W Bas^ 
tog She £50000 - E95% (16M04 
Ha9tn BUtoteig Soctety 12% Perm tot Bear- 
tog Sha £1 (Rag £50000) -£127% (168*94 
Hateto Hetdmga PLC On! Sp - 70 
Hammereon Prop fewftOav Corp PLC Ord 
2Sp - 380 % 8 7 

Hofrfyaft Hmwana PLC CW Sp - 2S7 

(141*94 

Hasbro he Shs of Com Stk 50150 - 538% 
Hw temtre Estates PLC 10%% iat Mlg Dsb 
Stk 9672003 - £106 (19*94 
Hfadtevn Mdgs PLC ADR(4:1) - $10.15 
Hotowa Pret e cbon Qrxjp toe Shi of Com Stk 
3025 - 34(188*94 

Hnpmaon s Gram PLC 525% Cun Prf ci - 
75(168*94 

HcrjVng Hnonca Corporatton Ld 11%% Dab 
Sik 2016 - £123Jk (148*94 
HoyteUoaaph) ft Son Ld 5% Cum Prf Stk £1 
-37(158*94 

IM) PLC 5%% Uns Ln Stk 200146 - £80 
(168*94 

IS Htoitteyan Fund NVOrd FLOOI - $16% 17 
17% 

kxtend Grata) PLC Cm Cum Red Prf 2<k> - 
134 % 

Mngaiorfft Morris (Senate*) Ld 7% WorvCUn 
Prf 50p • 18 

toduaWrf Control Santosa Grp PLCOM IQp - 
163 8 

toll Stock Exchange ol UKSRap at IrLd 7%% 
8Rg Dab Stk 90786 - £89% 

Irtsti Lite PLC Ord hmiO - IE241 222 223 
p 212 3 4 (158*94 

Jardtna Malheaon F8dga Ld Old $025 (Hang 
Kang Regtaierf - 3768.7373 340187 
JartSno Strategic Mdga Ld Old SOM fttong 
Kong Register} - 5H29438117 .1218 .1218 
Jersey BactncHy Co Ld "A" Ord £1 - £25 
(MMM 

Johnson Croup Oeonsrs PLC 7Jp (NeQ Cm 
Cun Red Prf lOp - 182 
JohnauiAtaBhay PLC 3.5% (Fndy 5%) Cum 
Prf Cl -58(158*94 

Jonea2troua(Fldgi) PLC io% Cun Prf Cl - 
130 

Juteer TVndat Int Fuid Ld Otebtouden 
Shares ip - 492 (148*94 
Komtog Motor Group PLC 3*5% (Fmty 
S%%) Cum Prf £1 - 61% 2 (HMr94 
Kngriey ft Ftoatter Group PLC 3*5% Cum 
Prf £1 - 52 (158*94 

K o rea Cure p e Fund Ld Sha0DR 10 Bri 30.10 
(Cpn 4 - S&6079 (168*94) 

Kvaemer TVS. Fhia A »a NK12J0 - NK38S 
623 752 0 

Ladbratca Group PLC AOR (1;1) - S3. 16 
Lamant Hldgs PLC 10% Bid Cum Prf Cl - 
117068*94 

Land SecuWes PLC 0% 1st Mtg Deb Stk 007 
2001 -CtOS 

Laid Securities PLC 6%% Uns Ln Slk B2707 

- £96% (141*94 

LASMO PLC 10%% Deb 8* 2009 - Clift 

018*94 

Labowa Platinum Mnas Ld Ord RCL01 • 16 
(158*94 

Leeds ft Hdbeck SuSdng Soctety 13%% 

Porm tot Saattog Sha £1000 - £128% % 
Leeds Pm ii an a n l Bitedng Sodety 13%% 
Permtot Bearing £50000 . £140% 1% % 
.576% (158*94 

LewH/otnJPamierteiip PLC 5% Cun PVT Slk 
£1 -56(168*94 

LewteUataiJPartnership PLC 7%% Cun Prf 
Sric ei - 82(11 W94 
Lex Sendee PLC 6%% Cun Prf £1 -73 
(111*94 

Lombard North Oenbte PLC fi% Cun 2nd Prf 
£1 -58 

London totei w donaf Group PLC ADR Srft - 
310*3 

London Socutttea PLC (M ip - S% % 

Lenho PLC AOR (1:1) - El £74 1SS54 « 
2254 

Loiktw PLC io%* Ito Mtg Dab Slk 97/2002 
-£108(168*94 

Lookare PLC S% Cm Cum Rad Prf Cl - 130 
(108*94 

LoorfWml a Co PLC 0.75% Cun Cm Red Prf 
£1 - 33 % 4% 

Loare«flotart K) * Co PLC 87^% ^h4 Cm 
Cum Red Prf lOp - 20 (158*94 
MEPC PLC 8% Una Ut Stk 2000/05 - CtOO% 
MacM*i-Gtei*uat (KG 6%% Cm Una Ln 
SBC20Q5-CS02 

McCarthy ft Stone PIC 6J5% Cun Rad Prf 
2003 £1 -107 

McCarthy ft am PLC 7% Cm Una Ln Sdi 
99*04 . £77% (1tt*94 
Mctnamey Proparttea PLC *A‘ Ord M01.10 - 
icaii (168*94 

Mandarin OrianM WerfteBonte Ld CM $ojb 
(H aig Kong Rag) - SH11.148824 
Man4Wd Beaay PLC 11%% Oeb Sk2010 
-£129% (118*94 
Marks d Spencer PLC AOR (1*1) - 
Ma rt a ft Spencer PLC 7% Cun Prf £1 -02 
(148*94 

Money HjC 11%% Oeb sn 2000 - £124% 
(118*94 


MarauLThonaXian & Evftrahed RC 10%% 
Dab Stk 2012 - £118(148*94 
Medew PLC AOR (4:1) - S18554 -874074 
Merchant Raul Ora* PLC 8%% Cm Una 
Ln Stk 90104 - £81 1168*94 
Uesav Docks & Hubou Co B%% Rad Dab 

Slk 66799 -£96% (148*34 

Mb-SuSMi Water Co 10% Red Deb Stk 
2013717 - E114% |158*94 
kfidanri Bark PLC 10% % Sutxvd Un3 Ln 
50(93798 - £100% (14t*94 
IMano Bank PIC 14% Subord Una Ln Stic 
2002707 - £133% 

Morgan Safer Japanese Warrant Fd Wor- 
rarrts to sub tor Com Shs - 50. IS (148*94 
Mount Cftaricna knesuianu PLC 10%% iat 
Mtg Deo S» 2014 - £1 15% .425 (llMrS4 

MuckJmriAA JJGraup PLC 13%K IS Mto 
Deb Slk 2000705 - £120 (158*94 
NEC Ran PUC 10%% Deb Ste 2016 - 
£125,1, (148*94 

NFC PUC 7%% Cm Bda 2007UReg) - £110% 
7% 

8MC Group PLC warns to sub lor Sha - 
102 

NMC Group PLC 7.75P (Nat) Cum Red Cm 
PrflOp ■ 122 3 (15M04 
National Medcal Enterprises Inc Shs d Com 
Slk 3005 - S1&92442S (148*94 
Nattered Power PLC ADR (10:1) - STOSS 
Nattensi Westminster Bank PLC 7% Cbm Pit 
£1-96% 

National We atm mat er Bank PLC 12%% 
Suborn Urn Ln Ste 2004 - £129 
New Central Wriwatersand Areas Ld RCLSO - 
£7.3 (111*94 

Newcastle BUkSng Sodety 12%% Penn 
(ntareat Baring Shs £1000 - £121 
Nmt PLC 7%-A' Cum Prf £1 - 75 (148*94 
Nonh Housing TVssodteten Ld Zero Cpn Ln 
Ste 2027 - 350 (148*94 
North of En#and BtikSng Soctety 12%% 
Perm tor Baaing (£1000) - £119% 20% % 
(168*94) 

Ontufo ft Ouaoac RMway Oo 5% Paon DM 
StkOrit Gtd by OP) - CSS (ISM/94 
PflO Property Holdings Ld7%% Id Mtg 
Dab Ste 6772002 - CB4 6% (158*94 
PacHcGte ft Electee Co So ol Com Ste SS 
- $30.39 (158*94 
Parkland Gram PUC Ord 25p - 237 
Pasoan PLC 13^25% Una Ln Ste 2007 - 
£138 

Peel Hdga PLC 9%% 1« 8Mg Oeb Ste 2011 
. £106 

Past Hdga PLC &2S% (NeQ Cm Cum Non- 
Vlg Prf £1 • 130 

Past South £arf Ld 0%% Uhs U Ste 07797 - 
£00(148*64 

Peer South East Ld 10% iat Mtg Deb Ste 
2026 - £107 <1 58*94 

Pee) South East Irf JZS% 1st Mtg Oeb Stk 
2015720 - £124 (15Mr94 
ParinsuL* & Orient* Stem Nav Co 5% Cum 
Pfd Ste - £57% (168*94 
Penfnsiiar & Orieraal Staam Nav Co 3%% 
Dab StedNrp) - C40 (168*94 
Perttns Foods PLC 6p(NeQ Cun Cm Red Prf 
10p-98% 

Petnrtna SA. Ord Sha NPV (Br to Oanom 1 JS 
ft 10) - BFIOiOOt 5*4 90$ 904* 
PR*mlsPLC9%%CunftfE1 -94(158*94 
PUntsbreok Group PUC 6.75% Cm Prf 91/ 
2001 IOp-93 (118*94 
PotgteterarusJ Rsttnuna Ld Old R0O2S - 
$5% p 345 (108*94 

PowM DulTryn PLC 4%% Cun Prf SOp - 24 
PovrerGen PLC AOR (10:1) ■ 384.44 
Pram ter ll es toi Group PUC Ord Ip - 2% % 
Presaac Hddtoga PLC 105% Cun FM £1 - 
IN (168*94 

Prudential Money Funds Ld Ptg Rad Prf 
3041 MuagedOaritog Sha) - £1 JflTS 
(158*94 

Quarto Bop Inc &75p0M) OrvCumAadSha 
d PM Ste 3010 - 194 (168*94 
REAHdgs PUC Worms to sub fer Ord - 
0)0225(148*94 

(LEAHUgs PUC B% Cun Prf £1 - 86 
fl 68*91) 

RPH Ld 4%% Una Ln Ste 2004700 - CSS 
(168*94 

RPH Ld 9% Una Ln Ste 9972004 - £102$ 
HTZ Corporation PUC 05% -B- Cun Prf 
El (Hag) - 56 

Rood Bacteria PLC ADR £:!) - C4A0B4 
Radatt ft Cttnart KjC 5% Cbm Rrf Cl - 62 
(168*94 

Regis Property Hdgs PLCft%% Gtd Una In 
Slk 1667 - ESS (161*94 
Ranald PUC 6%% 1st Dto> Ste 60795 - £99 
(158*94 

Ranald PLC 7%% 2nd Dsb Ste 82797 - E9S 
(148*94 

Ratal Corperaaon PLC 4.025% (Friy S%%) 
Cun 2nd Prf Cl -62(158*94 
Rodme PLC ADS - 5042 (168*94 
HoBs-RoyM Power E n g taa art ig PLC SJIM 
cun Prf Cl - 65 (118*94 
Royal Bart, of Canada GmSdg Fd UlPtg 
Red Prf ip -54% (158*94 
Roy* Bar* of Scotland Group PLC 5%% 
Cum Pit £1 - TO (1M94 
Re** Insurance Holdings nC 7%% Cm 
Subord Bda 2007 (Br £ Vte) - Cl 15% 
048*94 

Rugby <8nr«> PUC 7%H Uns Ln Ste 93766 - 
£06% (15M/94 

SCEcnrp Shs of Com Ste ol NPV - $17% 
(148*94 

SaotcM ft SuftM Co HjC ADR (3:1) - S0% 
.49978 

SaotoM a SaMri Co PLC 0% Dm uns Ln 
Stk 2015 - £80% (161*94 
SaunbuyW PUC ADR (1:1)- 550(168*94 
SotosburyM PUC 8% tori Uns Ln Ste - £57% 
Srnoy Hotel PUS TT Ord 5p - £60 (148*94 
Scantnric HJdgs PUC 72Sp (Net) Cm Cun 
Pad Pit SOp- IIS 

Schol PLC B%% Cum Rad Prf 2001705 £1 • 
102% 3% (158*94 

ScnoS PUC 5%% Cm Cun Red Prf 2008711 
£1 - 03 (158*94) 

Scmdar JuMnaaa WaraX Find Ld IDfl 0n 
Danom 100 Shs ft 10000 9is) - $1.9 
(168*94 

Schraders PLC ft%% Uns Ln Ste 97/2002 - 
£104% (148*94 

Scottish Hyttro-Bectrlc PUC Old GOp - 368 % 
97011 SI %2%%33%%%014 
.1916 % %5.19% %6 7 % 

Scottish ft Newcastle PLC 7% Cnv Cum 7*f 
£1 -240(168*94 

Scottish Parra PLC Ord SOp - 392 3 % 4 % 
5.3%.8 66%77%88%%.6B9% 
.26 % 400 400 % %.7%1%.7 2%.7 4 


Secuncor Group PLC 4^5% Cun Ptg W Cl 
-£168 71 (158*94 

S w a n rarer Grossing PUC 6% todra-Urtead 
Deb Ste 2012 (0344%) - £122 
Shanghai FiandfCaymeri Ld Flpg Sha $0.01 
-$tl%(l4M>04 

Srit Transport&TradngCo PIC Otd She (Bi) 


25p (Cpn 189- STB (148*94 
SNeM Group PLC Ord 5p - 16% 6 7 
Stated Grate PUC 064% (NeQ Cm Cun Rad 
Prf £t - 38 (148*94 

Sicpnta Fra** (UK) PtC 7.875p(Nai) Cun 
Rad Pit Sha 2009 - 99% (168*94 
Signet Group PUC ADR (3:1) - $1.78$ 

Smon Biglnaaring PUC 9%% Oeb Ste B2W 
- £99% (168*94 

600 Group PUC 11% Ur* Ln Ste 92/37- £97 
(158*94 

SMpKxi BUUtog Sodety 12%% P^m mt 
Bearing Sha £1000 - £122% 4 (161*94 
Smith (WJt) Group 1UC -B" Ord 10p - 121 
(158*94 

Sman (WJL) Cram PLC S%% Red UnsLn 
Stk -£50(118*94 

SmtnMbre Baacham PLC AOR (£ I) - $30 
.623979 

SmthKBne Beecham piCTSritMOto* ADR 
(&1) - £16-57* 3 27%* .4790624 %* 
■324$ %« Ait Ji 94 
Snaths toduoblaa PUC 11 %% Dab Ste 96/ 
2000 - £105% (158*94 
South S U Botdtetea Waiar PUC 9%% Bad 
Dab Ste 9672000 - £108 % (148*64 
S*4 Fwratura Hdga PLC 11% Cun Prf Cl - 
110 (168*94 

Standard Chartered PLC 12%% Subord Una 
Ln Ste 2002/07 - £123% % 

Seveiay industries PIC 5% % Cum WM - 
50(158*94 

stavui agomtea PLC Ord Ste 20p - £7.7 
(118*34 

Symonds Engtocsrton PLC Ord Sp - 30 
T & N PLC 1 1 %% Mtg Oeb Slk 9672000 - 
£103 <158*94 

TSB O* Fund Ld Ptg Hod Prf IpfCtaas'A' 
PtO Red Prf) - 11034 (118*94 
TSB Graai PLC 10%% Sitoord Ln Ste 2008 
•£117% 

Ton ft Lyla PUC 0%%(436% pUn tax oad- 
iQCunPrfCI -75(13*94 
Tare ft Lyta nc 10%% Ltoa Ln Ste 2003/06 
-C111 

Taylor Woodroar PLC 9%% 1st Mtg Deb Stk 
2014 -£106% (168*94 
Tesco PLC AOR (1:1) -3339 
Tesco PUC 4% Ura Deop Dtae 111 Stk 2006 - 
£09(158*94 

Ttertxnd Ints mOk ni t fund Let Ptg Stts S0A1 
Wr to BO - 527 

Town Centre Securities PLC 10%% lat 8ng 
Oeb Ste 2021 -£119(4 (168*94 
TorerJtomteeySMSbaum Estates PICS%% 
Cun Prf £1 -02(118*94 
Traftegar House PLC 7% Uns Deb Ste £1 - 
77(1SJr341 

Tnddgar House PUC 9%% Uns Ln Ste 20007 
06- £100 

Trtotegre House PLC 10%% Uns Ln Ste 
2001/06 • £102% 5% 

Transatlantic Hottenga PLC B 0% Cnv Pit £1 
■ 112 

Transport Development (Soup PLC 8%% 

Urn U» Ste 63/96 - £66 (148*94 
Ttaraport DamtopmarK On# PLC 9%% 
UnsLn Ste 6672000- £103 (158*94) 
Transport Dawtopmerd Grotp PLC 12%% 
Ura Ln Slk 2006 ■ £124% (158894 
Urigata PLC 6%% Uns Ln Ste 91/66 - £97 
Urtgroup PLC 7%% Cun Cnv Rad Prf El - 
100 (148*94) 

Urteowr PLC ADR (4:1) - $88% 068*94 
Union totamsbonte Co PLC 6% Cum Prf Stk 
Cl -01 2% 

Union toremadonte Co PLC 7% Cum Pit Ste 
£1-70 

UnreyaCupComSteSQJOl - *15% 

LHted Kingdom Property Co PLC B%% Uns 
LnSte200Q70S -£99(158*94 
Utfity Critta PLC Warrants re sub tor C(d - 
25 

Vaux Group f%£ 9375% Dsb Stk 2015 • 
£116% (168*94 

Vast Group PLC 1 1 %% Dab Ste 201 0 - 
£125(158*94 

VUure PLC 5% CunfTax Free To 30p)Prf 
Ste Cl -70(158*94 

MorMsna Ores PIC AOR(IO: l) - CS7JS73 $ 
84 % %% 67 5^5.72 6 
Watkteigtongotri PLC 4J2% Cun Prf £1 - 
66 

Wagon todustrtrf Hdgs PUC 72Sp (Nat) Cm 
Pig Prf lOp - 153 

Writer Grosnbank FLC 9%% Cm Cun Rad 
Prf 25p- 140(118*94 
WaDgs^Thomaa) RC Old Sp - 31 (168*94 
WabnaughsfHdjri PLC B%% Cun Red Prf 
2009 Et - 107% (188*94 
Welcome PLC ADR (1:1) - 96.30 
WCIs Fargo ft Compuiy Shs of Com Ste $5 - 
$143 

Wsmbiay PLC teKNaOCm Cun Rsd Rt 1696 
£1 -51 

Waet Kara water Co 12%% Red Dab Ste 94/ 
98 - 004 

Wh a B a nd Group PUC U toub to a* to r Ord 

-aas 

Vtaatand Group RC 7%% Cnv Cum Prl Cl - 
385(158*94 

Whtoread PUC 5%% Gd Cun Prf Ste Cl - 
61 (168*64 

Whitbread PLC 6% ted cun Prf Ste Cl - 70 
(158*94 

WMtxead PIC 4%% Rod Oeb Ste 9872004 - 
£78(141*94 

Whitbread PUC 7%% ltoa Ln Ste 95799 - 
£99% 100 (158*94 

Whitbread PLC 7%% Uns In Ste 960000 - 
£101 (148*94 

mtonad plc ioi 2 H UnsLn sncoooros- 
£112 

WKams Hdga PLC 10%% Cum Prf £1 - 127 
WBa Corroan Gras) PLC ADR 0L-1) - £16% 
Wrtvraterarand Nlgtf Ld Ord R02S - 18 
(148*94 

Waocteigton RC 8% Bed Cm Sac Ln Stk 
1904 -IGB0 (118*94 

Wrwham ft East Denb Water Co 4M PtPg 
Ord Ste - £5700 

Wyevaie Garden Centres PLC 83% (Not) Crw 
Cun Rad Prf £1 - 200 (168*94 
Xreox Cup Cun Stk $1 - 399.768 (158*94 
York watanrafu PLC Onf top - 337 
Yore Waterworks PUC Non-Vug *A* Ord lOp • 
304(168*94 

Yortcriro-Tyne Tafta TV Hdga PLC Wte to 
sub lor Old- 175 


Ygung ft Co’s Brewory PLC 8% Cun Prf £1 - 
117(148*94 

2an«a ConsoteWad Copper Mnoa toTT 
Old KfO - 250$ 

Investment Trusts 

Alkuica Trust RC 4%% Prf Slk (Cui$ • £40 
NHonce Trust PUC 5% Prf Stk - £61 (168*94 
Baaae GMonf Jtftkon That PLC WlatoSU) 
Ord Sha -237 (168*94 
Brile Gtfaxd Shto Mppon PLC Warrants W 
aub lor Od - 136 

Brash Empke Sac ft General Trad 10%% 
Deb Ste 2011 - £119% (118*64) 

Bndsn bwasanant Trust PUC 6%% Prf 
Ste(Cui4 - £83 (ia*$4 
CACJnvestnent Treat PUC Ord 2Sp - 107 
18(148*94 

CopiW Gearing Treat PtC Ont 25p • 4S2 
(148*94 

Ctamuita Korea Emerging Otwrth FundShs 
310 (Rag Lux) - $11% 11% (158*94 
DimJn WartdMtoa to* Trust PLC 3%K Cum 
Rf Ste - £6T (158*94 
Fldeaty Euopesi Vatuos RC Eguky Ltokad 
UnsLn Stk 2001 - 141 

Finsbury Smafter Go's That PLC Zero Dtv Prf 
25p - 180% 

Ftomtog Ctarrahouae to* Treat R.C 11% Dab 
Ste 2006 -£122% 

na ming MercanMa to* Trust PLC 2ft% Cun 
Prf Ste £1 -48% (148*94 
Ftantog Hvrefla to* Trust PLC 3.5% Cum 
Prf Ste Cl -55 

Gartmore Shared EqUty Trust PLC Cauad 
Otd toe lOp - 124 % 5% S 
Oowra SWt/ftjlc inv That RC 11 %% Dab 
Ste 2014 -£130% (148*94 
HTR Jnponaae S ma ller CoM Trust PLCOrd 
2Sp- 105 % 6 7 7 J06 % 56 9 
tovsskxs Capital Bust PLC 7%% Dab Ste 
92797 -C905J* 

Law Debenture Corp PLC 3ftS% Cum Prf £1 
-00 068*94 

Lnzard Select tovaatmanl That Ld Ptg Red 
Prf 0.1p UJU Liquid Aaaets Fund - £10$ 

Leveraged Opportunity Tlust PLC Zer Cpn 

Ow Una In Ste 96700 -£126(118*94 
London ft 8t LMianca kweatmsnt PLCOrd 
6p- 153 

London ft St Lawence h uwa ana n t PLC6% 
Cum Prf Cl -64 (108*94 
Murray Income Treat PIC *25% Cum Prf ci 

- 67 (158*94) 

Murrey totsnsftonal Treat PLC 69% Cun Prf 

£1-06(168*94 

Nnv Guernsey Seasides That Id Otd 25p - 
112 

New T hrog morto n Trust(1983} PLC Zero Cpn 
Dab Ste 1896- £71% 

Northern Induat toiprov Treat PLC Ore Ei - 
470 058*94 

Paribas French limutm er n Treat PLCSora *A* 
Warrants lo tub tor Old - 44 (108*94 
Portree French Imeatmant Trim RCSara 
*B* Warrants to eub (Or Old - 34 
Schroder Korea Fund PUC Old $aoi (Br) - 
$14% (19*94 

Scteoder Korea Fund PLC waa to Sub lor 
Old (Brf - 38% (188*»4 
ScotSah Eastern tov Treat PLC «%% Cum 
Prf Stk - £50 (l 58*94 

Scottish Eastern ton Triad PLC 6%% Deb Ste 
2020 -£116% 

Scotttsti Nattond Trust PLC 6% Cum Prf £1 - 
71 

ScoiUati Ntokani Treat PLC 10% Oab Slk 
2011 -£109 10% (168*84 
SMraa H^i-YMiing ter* 00% TatWts to 
Site lor Ore - 73 (108*94 
Sptraa investment Treat RC RanUed War- 
ranto to eM> far Od - 7 (168*94 
IH Oty of Landui livst PIC 1 1 %% Deb Ste 
9014- £131% (108*94 
nvovnorton ThM PtC 12 6716% Deb Stk 
2010 - £134% (108*94 
Uptown fcw w* nn Co PLC Old 2Sp - 561 
Wkynora Property investment Tat RCWto to 
Sub tor Od - 55 

WHan knastment Co PLC 0%% Oab Ste 907 
66 - CB9 (168*94 

Wtoi Investment Co PLC 0% Dab Ste 9049 

- £103(148*94 

Wtom tovarinant Co PLC S%% Dab SM 
2010 - £100 % 

USM Appendix 

BLPGrwft>PLCOrt60p- 117 
BLP Groift) PLC 6p (Net) Cm Clan Red Prf 
lOp - 105 (158*94 

Oteoa areftl PIC Od WXL25 - 002 
068*94 

FBO Hddtoga PLC Ore *£050 - K2C5 
I14MI94 

GftdH Mew PIC Ord 25p - 420 (14M94 
Grad Southern Group RC 6.75p Cun Cm 
Red Prf Sp- 174(148*94 
MkSand ft Soottish Raeoucee PIC Ord lOp - 
4 % % 

Neuter Oroi® Ld Com Shs of f#hf - 38% 

(108*94 

Tloketeig Group PLC 7.73% Cm Cun Rad 
Prf Cl -455 


Ead ol E/ta»nd Roa»tof*4 Prop PLCOrd SQp 

B^SplC 7.S% (N«6 Cm Cun ftod W 

Corponmcn KC Ord 5p - 

GBKier Hottng* PLC 

Groucno Ctob loooon PLC Gri Ittp OHt 

U5« Co Ld Ore tOp - £0.684 
SSSTPLC 1l%Lh Nto 91AM - £102 

, ESg££ PLC Ord 10p(P1fy-W l»W 

Jerrtnga Bros Ld Ofd 2Sp -P- 1 
KMmrat Bmsanpmt Funl Mto &noto»0 
MduXaFund - E20J28 
Kiraiwort BaneunfloO Fuid Men tot Inc Uiu» 

Bond Fd - £7.045 (10»*94 

Krimmrt BenaontlriO Futo “an Japaneso 
Fund -300914 (158*94 
KjSSrt BoracrttoS fund Mon KB OR Rmd 

- £15-2?$ 

lOetowart BensonpnO Fund Man tot EqUty 
Gwtti Inc - £2^121 , 

LbwtM Gra® PUC Ord £1 - £17% 17% 

La Bcha'a Stum Ld Ore El - £?■• 2A& 
Mm A Ovoraat* PLC tW Sp - WT7 

htatooftMercontflo Sacutom PLC Od 
VCOJO - £2.92 

Merouv Fund ManJWa of Mare Mcccuy Im. 

Bond Fuid .£0.619(108*94 

Merrett Hdga PLC Ort lOp - CO 0303 000 
Mot» totwnatKxri Graft! PLC Od Ip - 
£042 0.46 

MuMsotft Ld Ord lOp - CO. 10 (108*94 
N.WJ 7 . Ld Old Ci - £6% BA (108*94 . 
NaDonal Parking Corp Ld Old lOp - £4$ 
4054 

Newbury Racacoum PlC Onf noo - £2010 
(161*94 

North waftt ExptoraOon PLC ore 20p - 4 4 

(108*94 

Orison PLC Ord Ip - £041 (117*94 
Pan Andean Resources RC Ort Ip - 
EO.OB2S (14Mr94 

Perpeaut(Jeraay( Oftohora Aslan Smalar 
Markets - £20504 (148*64 
Parpatuolparaay) Oftshoro Emergtog Go's . 
38.1832 (168*94) 

P erp etutn Uwtorf Offshore UK Growth - 
066053 

Potman York Group PLC Otd 5p - £1 
(118*94 

Rangers Footbaft Ckto PLC Ord lOp - £1.01 
1.05 (168*94 

Raphael Zom Hemdey Hdgs LdOrdCI - 
eiJNf 

Robert Jenktos PLC Ort Cl • £0.78 (118*94 
SLAustaB Bnawnry Co Ld CM Cf - £7% 
(1*8*94 

Saxon ktaw* Ooup PLC OW £l - £1% 

(108*94 

Sedan Hotel uj ore Cl - £3.9 (148*94 
Sated todustooe PLC New Old 7%p (5p Pd) 

- £0.035 1X05 1168*94) 

Shepherd Nmrne Ld *A‘ Ord Cl - £6% 

(llMriM) 

South Groan Hdga PLC CM ip - £00075 
(108*94 

Southern Newspapers PLC Od Cl - £4.16 
4 Z <L2 4% (1681194 
Southern Vacua PLC Ore lop • CO-225 
<118*94 

Sui Of Gttrin id O0 Royriy Ste unw ip - 
30 (158*94 

Thwai*B3(DQiM)& Co PLC Ord 2Sp - £2.63 
28(158*94 

m^huPicoresp- 00.15 
Thxku Network PLC Ort £i £11 11JM 
11% 

UAPT-Inlalril PLC Ord 25p - C0.7B 0.6 
Unicom bma PLC ore 2Sp - ca 55 (158*94 
IMHd Auction* (Scadencl LdOrdCI -£3 
Vtota E ntertatomanto PLC Old Sp - CDJ0012S 
000375(148*94 

Wortwg Aaaet Management Jersey 8«arcunr 
tot) Gold ft General fd - SI-58225^ IJB&t 
Waetabto Ld 'A* Non.V Ord 35p - £10% 17 
WMehurch Group PlC Ord TOp - EOS8 047 
Wtocnaeter Min Medto RC Ord Sp - DUO 
(118*94 

Yatos Brito Wbia Lodges PUC Ort 25p - 
£21075 2.12 (158*94 
Young Group PIC Ord lOp - £00025 

RULE 63S (4) (a) 

Bargains marked in aacuittu 
whom principal martcot te outside 
the UK and Repubtic of Ireland. 
Quotation has not boon granted hi 
London and dealings are not 
recorded in tfw Official Ust 

AuL Foundation AS2JU2 (1 Id) 

Btote of EM Aate HK$32d0JI3.10 
Beach Paboieun 8 (T4J|) 

BuMt Sembeweng 600# 


a. 


& 


Rule 535(2) 


Atosne ft Co PtC *B‘ Ort £1 - £25 
(161*94 

Aft England Lawn Taniria Grourt Ld Oab 81/ 
65 C200B- £12025 (168*94 

Amafgameftad MaU Cogi PtC Old £1 - 
QL95 (14MriM) 

Arm Street &»vaiy Co Ld 0« Cl £3.4 3.45 

Ann Street t h w era y Co Ld Cm Rad 2nd Prf 
£1 - £8d 

Aston Mb Fooibal Ctob PLC Ord £8(1 vo*4 
• £80(168*94 

Bardaye toveetment Fund(CJJ Sterling Bd Fd 
-£04638(168*94 

8tocue Hokteftjs PtC Od Ip • £D% 

Br*3pese(WJDft Sona PIC Ort 2Sp - £23 
(148*94 

Oancote Hddtoga RC Ort Sp - BX33 
(148*94 

Cavedam PIC Ord Ip - £0105 0.116 
(168*94 

CharinaoTOiailduro Chutoco Dtotr • £104 

Cooper Chaim Group PIC Ort SOp - 70 
(14*094) 

n R ft Mana gement PIC Ort lop - 0*525 
(118*94 

Dateelth torn PlC 10p - £ai6 (15M94 

Dawson Hdgs PLC Ort lOp - CAM 


ChudrU Ruaunto (16J) 

CRy Deudapmento HK38JH7S 

Cans. Exriaratton 4* (11-31 
Devex 30 (11-3) 

□uker ExptuaUan 325* (145) 

Far East Motets H<$27S6137 (15.® 

Forest Ltovstoriee $31 (153) 

Getmen Sciences £12% 

Gan. SecuritlM tov. S$2B17964 H6J) 
Hartend (John H) £15u74 (1 IS) 

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Strategic MbywdaASO, 10 
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1 

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By Stw Thompson 

A trading session fraught with 
tension and surrounded by specula- 
tion of an imminent further tighten- 
ing of monetary policy by the US 
Federal Reserve saw London’s 
equity market, iuider the lead of a 
struggling gilt-edged market, Tall 
sliarply before staging a good rally 
towards the close of trading. The 
situation was furtlier confused by 
stories of a potential military con- 
frontation in Korea. 

Adding to the general unease sur- 
rounding the UK market was the 
“double witching hour" or expiry of 
index option futures and the FT-SE 
index future in mid-morning, tradi- 
tionally an event which triggers 
exaggerated movements in underly- 
ing stock prices. 

When the dust settled, however. 


TRADING VOLUME 


■ Major Stocks yostevxtay 

VM. doing Day s 


bond weakness sparks equity sell-off 


Tunoni By volume tmfltton) Eadwing: 
Intm-rrtariua business and overseas turnover 
1.200 


f*™ 1 helped by a resilient showing 
US bonds and equities, the 
FT-SE 100 index bad recovered to 
close a net 37.6 lower on the session 
at 3,218.1. 

The Mid 250 index fell 21.0 to 
3,865.6. 

And. as senior traders were quick 
to point out, the 100 index finished 
a volatile week a remarkable asz 
higher, thanks mainly to the 75 
points jump in the index on Monday 
and Tuesday when bond markets 
were Indulging in a strong recovery 
process and the UK market was 
being driven higher by a flurry of 
excellent corporate results. 

The early scene in equities was 
one of unmitigated gloom, with gifts 
sharply lower, ahead of expected 
news of another gilts auction. Long 
gilts fell further as the morning 
wore on, dragging equities down 


Account Oealkig Data* 


TW iMngx 
Feta 


htm M 


Option OMMomi 
Mr 10 


*** 7 


IMS 


Apr8 


Account Days 
Mr 21 


AttS 


Aq_IB 


•Now tfeM dMfctga raey take place from two 


with them, as the market picked up 
the stories of potential trouble in 
Korea and began to react to a series 
of rumours about Mr Alan Green- 
span, chairman of the US Federal 
Reserve. 

The most extreme of these was 
that Mr Greenspan was about to 
resign and another was that he had 
cancelled a trip to Dallas, Texas, 
where he was about to address a 
conference, and had been calle d to 


the White House to brief President 
Clinton on another increase in the 
Federal Discount Rato next wcek. 
The Federal Reserve's Open Market 
Council Meeting, to discuss mone- 
tary policy, is scheduled for Tues- 
day. 

These rumours, which drove long 
gilts down by 1% at worst, and were 
accompanied by the expiry of the 
March index options and the FT-SE 
future,' sent the equity market into 
a tailspin, which saw the 100 index 
dip below 3.200 and reach a session 
low of 3,197.7. 

Thereafter markets embarked on 
a good recovery, as the Korean sto- 
ries foundered and US bonds and 
German bunds began to stabilise. 
News of the innovative auction of a 
floating rate gilt, with details on 
price and size expected next week, 
took the edge off losses in UK gilts. 


Senior marketmakers said the 
equity market had taken fright at 
the prospect of another rise in US 
interest rates but that there had 
been little In the way of heavy sell- 
ing pressure as the stories circu- 
lated in the market. “It has to be 
said that there was little in the way 
or genuine customer business either 
way today." said one trader. 

Turnover yesterday reached 
609.4m shares, below levels seen 
earlier this week and well down on 
the lbn-plus levels seen previously 
this year. 

Next week brings more crucial 
economic numbers from both sides 
of the A tlan tic UK economists will 
focus on Wednesday’s retail price 
index details for February, while in 
the US the FOMC meeting and auc- 
tions of two-year and five-year 
bonds will capture the headline? 



1.750 


1.700 


1.650 


1.600 


■ Key Indicators 

Indices and ratios 

FT-SE Mid 250 
FT-SE-A 350 
FT-SE-A All-Shaie 
FT-SE-A AH -Share yield 
FT Ordinary index 
FT-SE-A Non Fins p/e 
FT-SE 100 Fut Jun 
10 yr GDt yield 
Long gtft/equity yld ratio: 


Mr 


Jun Foe 

Mr 

1 


1994 




FT-SE 1O0 Index 


3865.6 

-21.0 

Closing index for Mar 18. 

....3218.1 

1632.7 

-21.0 

Change over week 

+26.2 

1624.88 

-15.88 

Mar 17 

.....3255.7 

3.56 

(3.53) 

Mar 16 

3242.9 

2542.7 

-23.6 

Mar 15 

.-..3267.4 

21.60 

(21.78) 

Mar 14 

—.3233.4 

735 

(755) 

Low" 

,.-3197.7 

2.20 

(2.19) 

Trtira-day high and low lor week 


EQUITY FUTURES AND OPTIONS TRADING 


VOL Ckwhg Day's 


ASOAGnxvt 

Abbey Nntnialt 

M*rt FMM 
ABKHyorof 
Angtan 
Argoa 

AlfDtl GnMflf 

Alta Wgqaasr 

ASSOC. Dot Foods! 

Assoc. Brit. Poem 

BAAf 

BATtadLf 

BET 

HOC 

“ft 

BPt 

era ml 

BTt 

BTfVPaU} 

BTRt 

Bans of Scotland! 

ssr f 

BfcoCrctat 

Ocx*.. 

Bodat 
Bowaarf 
BnL AaSoofMCet 
a ittah Abwiirat 
BrrtoJi Cart 
British Land 
frttsn stcat 
Bund 

Btswoh Casootf 

Union 

Cat*) AWkat 
CadtwySdtiieppaat 

Color Gro.iV> 

Cnatanf 
Carbon Comma, f 

Coots VTyoaot 

Comm. Untonf 

CooAaai 

ComsAMt 

Ompscy 

DolaRia 

DUom 

Eaatait Bad 
East Mkland Sect 

Eng CJ*» CJjys 

Enlorprtsa Oif 

Funtturvtd Utils 

Fhl 

Ftoons 

FoMjtgnaCot LT. 
Forte t 

Gon. AcCKVmtt 
CwnrJ ElocLt 
Glaiot 
Gfannwd 
Cnnadat 
band M«t 
CUSf 
G«{ 

CXN 

nsncpsonwt 

liansmnun 

Hwacnf 

Hnnoms OwrfWd 
Kay» 


M 

lOt 

VvJvopat 

JtAsnon MsUiny 

Mngfrjhwt 

KerV&TW) 

InrJbriAnt 

LnndSeartkot 

Lwto - 
Lmlal 4 OortortiJT 
UOMhAbbw 
tk7*i» Bor*f 
LAtiMO 
London Etna 


rt 00* rTUOQT r» mn «• iMh « 


12X00 

1X00 

68 

486 

-1*2 

-2 

Lonrhe 

Lucas 

6X00 

153 

-3*2 



41 

MfPCf 




1.300 

49T<2 

-6>2 

Marwcb 

426 

1 WI a 

-h 




MajfcsS Smncwt 







MUandaEtact 







Mqmson (tom) 

580 

*171 a 

+i 




NFCf 

6.700 

247 




NMWflSJBlrtct 


485 




-3 

NnxmPumi 

1X00 

470 





Nert 

6X00 


+fa 



-1 

North VM Warart 

707 






Northsin B«cl 






-a 

Nontwri Foodst 

1.300 

212 




—1 *2 

Ncrwoti 






-2 

Paaamt 

1X00 





-4*2 

PSOt 



-13 

4fiOD 


-4 

nktapDfl 



ixoo 

196 

-3 

-4 

PowoOeit 

Pnjdwserf 

1X00 

663 

-3 


662 

-1 

RMCf 

812 

no 


1X00 


-1 

RTzt 






-5 

Rate 


218 


txoo 

506 

n 

RtekCkg-t 

RockfftS Csteanf 

1.700 

383 

41B 

630 

-6 


490 

-o 

Botendt 

1X00 

974 




-3 

FfaiadHLt 

1X00 

869 


4X00 

7X00 

CflL[ 

wh 

-*2 

-7*2 

RuraoUf 

fteuwrat 

1.100 

046 

241 

2010 

-Tfa 

-11 

250 

a boo 
k a 

N 

2X00 

400 
(45*4 
tsi 
037 
54 tr 

-1 

-A 

-3 

♦fa 

RoiaRoycot 

R*l Bk Scottsnrtt 
RWd keuoTOJT 

4X00 

3X00 

1X00 

ajnpfr 

630 

188*2 

437 

277 

388 

lire 

-afa 

-i 

-i 

♦fa 

-64 


441 

-11 

Scotttah S itow-t 


538 

-7 

824 

4W 

-J 

Scat H^o-BbcL 

a an 

ass 

-«fa 

137 

321 

-4 

Scoot* Rowwt 

1X00 

388 

-a 

80S 

396 

-1 


1X00 

nsfa 


sss 

963 

-2 

SMgekk 

1X00 

219 

4S 

1.900 

255 

-S 

Seetxertt 

334 

341 

-i 

1.700 

502 

♦1 


73S 

564 


1.700 

27B 

-4 

Shffl Transportt 

5.400 

873 fa 

-10*j 

2X00 

560 


S«»f 

1X00 

587 

-ii 

72 

454 

-4 

Slough Ene 

555 

260 

43 

1X00 

1021 

123 

SmMi1WJL)A 

1.100 

524 

43 

1X00 

211 

-3 

Smei S Ncenewt 

1X00 

143fa 

-1 

Bl * 

830 

-3 

StnH Oeenjuuit 

a*o? 

404 

-4 

549 

60S 

-6 

SmN Boscmm Utet 

Ml 

369 

-6 

1X00 

510 

-2 

StirthstaOs. 

302 

493 

-1 

1.500 

411 

-a 

8 outhen Qactf 

£82 

636 

-6 

142 

535 

-4 

South Wales Bart. 

39 

690 

-13 

1X00 

211 

♦1 

South WtetVUar 

30 

565 

-3 

2X00 

132 

-1*2 

South Wwl Bart. 

430 

£19 

-2 

435 

295 


SoutfKrrn MUer 

730 

585 


2.100 

200 

*3 

SLndMl CMrtd.t 

2.400 

1160 

*22 

1X00 

013 

-a 

Storehouse 

fWlO 

320 

-6 

3.400 

304>2 

-6b 

Sun Atemari 

1.100 

339 

-3 

4X00 

604lj 

-9*7 

TON 

143 

239 

-1 

654 

380 

-Ofa 


3X00 

388 


2.700 

50 

-4 

TSSt 

<200 

233 

-3fa 

2.000 

468 

-7 

Tamac 

5X00 

201 h 

*«fa 

1.700 

562 

-IS 

TueSLyfa 

525 

427 

-a 

1X00 

191 

-5 

T^lorWootew 

553 

159 

-7 

233 

550*2 

-fa 

Toscot 

3.100 

220 

-fa 

4.1IH 

405 

♦1 

Thanan vtoaorf 

781 

630 


5X00 

70/ 

-37 

itonaif 

727 

1122 

-22 

230 

301 

-J 

Tontent 

696 

292 

-4 

B.OOJ 

201*7 

Ofa 

TraUgor House 

629 

106 

-2 

900 

210 


IMgaM 

1X00 

390 

♦7 

CM 

296 

-5 

Urtourt 

5 . ion 

1058 

-23 

1X00 

173 

*2 

Ureied Bccutst 

2.100 

348 

-1 

183 

347 

-0 

UW Nowpopara 

1,100 

1X00 

688 

-f 

1X00 

787 


Vodntonot 

551 

-14 

2X00 

556 

♦2 

Wartmg [SGtt 

(Sir 

766 

-19 

144 

57* 

+3 

Woteomot 

1.700 1 

9271; 

-afa 

2XOQ 

688 

-14 

WetahWnw 

25/ 

656 

-ii 

350 

902 

-3 

Wotnr 

702 

061 

42 

2.000 

207 

-*J 


1X00 

S40 

-11 

1 X00 

®4 

-a 

HUgs-t 

1/400 

389 

-6 

610 

799 

-s 

Mae Conoco 

2 X00 

234 

46 

1.100 

602 

-6 

Wtaiper 

1X00 

209 

-1 

1.100 

412 

-1 

WoHteff 

384 

«5 

-6 

1,700 

682 

-« 

Votefuw Bad 

418 

633 

-7 

1X00 

130 


YortohW mw 

zoo 

5*1 

-3 

587 

609 

-4 

Zm cat 

1X00 

754 

43 

a — Indian or rate 

ante 

M tea* M S6W teen itenkr *• 4 Jten Train 


Technical trading in June 
futures led to a sharp 
retreat in Index futures and 
a fall in foe cash market, 
after expiry of March 
derivatives. 

The mid-morning expiry of 
the March index options and 
futures passed off peacefully 
with the March futures 


contract closing at 3,235 on 
volume of 7,861. 

Active selling of June saw 
It finish at 3,215 on volume 
of 23,589 lota. In fhe Lifts 
m id-250. March dosed 
at 3,856 and June at 
3,865. 

Turnover ft Ljffe traded 
options was 33,154. 


■ FT-SE too MDEX FUTURES QJFFE) C2S par fuj hda* point 


(APT) 



Open 

SMt price 

Change 

H^l 

Low 

Eat vd 

Open kit 

Mar 

spin n 

323S.0 

-1Z0 

3240.0 

3221.0 

7873 

14615 

Jun 

32300 

3216.0 

-39.0 

324&S 

3168.0 

23588 

52848 

Sap 

3231.0 

3232.0 

-4341 

3231.0 

3231 J) 

10 

680 

■ FT-SE BAD 250 INOEX FUTURES [UFFG) £10 per lul Index point 


Mar 

386B.0 

3868JD 

-32.0 

38800 

38680 

2S 

881 

Ji*i 

3885.0 

3866.0 

-40X 

3885X1 

38600 

84 

1334 


■ nr-SE MO 250 INDEX FUTURES (OULXJ CIO par IU! todex point 


+30 


3860.0 3860.0 


767 


Jun 3880.0 38900 

Sep 3911.0 

Al open tarn* flgura* we lor prwleue drat- 1 Brad adume ahown. 

9 FT-3E 100 INDEX OPTION (UFFE) (*3216) £10 ptr M todo* point 

3090 3100 3150 3200 3250 3300 3390 3400 

CPCPCPCPCPCPCPCP 
Mar 188*2 ltd 1 * BBfa 16*2 33fa 83fa 133^2 183fa 

Apr 174*2 IB 1331) a KBfa38fa 67 GOfa 4*fa 88 28 116fa14fa 158fa 8 2024 

*7 188 35 181 48*2 1»fa63fa 98 85 73fa109fa 53 139fa14fa 173 23 209fa 

Jun Zl3fa SQfa 177fa 64 146 82 1t6fat02fa 81 128 70fa 155 52fa 186fa JBfa 223 

Dect 250*2 129 19Bfa163fa 15»fa 314 10B 2?0fa 

zm 8,155 Pub 10,70 

■ EURO STYLE FT-SE 100 SP6X OPTION (UFFg CIO per 1u9 index point 

3075 3125 3175 3225 3275 3325 3375 3425 

Mar 180 110 GO 10 40 80 140 190 

A|ir 15012 22*2 112> 2 32fa 82b 49fa 55fa 72b 32b 10th 19b 136*2 10 179fa 5 224 

fey 143fa 56 S3 94$ 42 132fa Ufa 228 

Jun 158 68b 83 171 35 242 

Sept 206 101*2 149*2 142 104*2194*2 78 257 

C3b 1 JB8 Mi 23*6 ' Unteiytag bta tstae. IMin show are end m b b w pried 
t Loob ddaJ eq*y wrtta. 

■ BMP STYLE FT-SE MB) 250 INDEX OPTION (QMLX) CTO per full indw point 


3880 4000 4050 4100 4160 4200 

Mr 33 123fa 21 152 fa O 204 fa 8fa 250 Sfa 

fey 

Qte 5 Pun 25 MeiM pfcn red ntaan n Wen d uorol 

4250 

4300 

| FT-SE-A INDICES - LEADERS & LAGGARDS | 


Percentage changes since December 31 1003 based on Friday March 18 199« 


leoara & Holds 

Butflng a CaraOjAn . 


*9X3 


EdnaM taduMas . 
FT-SE WCap — 
Owl 


. +8.48 


oawdkdkfe. 


i ft-SE 190 Mb i 


1~T • SE Actuaries Share indices 


r a 


o*t% 

d* as Mr 17 


VWr 


M 


15 


01 Eqtanao & hod +4J6 

BoMog mrab & usd* . +422 

IdMIAn +333 

FT-SE Md SO « IT +237 


DK. eoiL PC Xda4- 
lM 1 U» nto ltd 














ikimitreeie 

-i.ii 

EUanctr 

-499 





SpfcO*, Mms AOdee 

-L71 

BrateL Ceraral __ 

-993 

NcnFtatai 

-I.7B 

n Gda tea -iai* 

Badraak & Bee tflupm -2X9 

INfa 

-1039 

OmralM ... 

-111 

GnDEWoton 

— -ia <2 

Olktogrted 

-3.13 

farereci 

-*045 


-140 







Ufateurarct 


Ttewnutelora -1161 






-4J7 


-1461 


The UK Series 


MW 


Low 


FT-SE IDO 3218.1 -12 32S5.7 32423 32674 2900.1 376 896 

FT-SE Hd2S0 38656 -85 38886 3880.4 30025 3154.7 117 504 

FT-SE MM 250 a let Treats 38858 -0-« 38022 39060 391&2 31759 326 599 

FT-SE-A 330 '6327 -10 1649.4 16446 16565 14365 353 5.75 

FT-SE SualC^ 2001-61 -04 200699 200670 201155 1572JJ5 

FT-SE SmaOCw « br Trusts 196356 -03 196678 1980.47 1992.16 159193 

FT-SE-A ALL-SHARE 162458 -19 1640.76 163892 164697 142134 

■ FT-SE Actuaries All-Share 

Day's Year Qm. Em. 

Mar 16 dy* Uari7 Mr 16 ttr 15 ago *d% *Hk 


2032 23.12 
H.40 1490 
2394 14.40 
21.15 10.45 
277 372 3350 Ml 
290 4.1 D 3190 795 
356 590 2171 1213 


1186196 3B2B3 WSi 

140797 41S29 3094 
1410.44 4M9J 1371/94 
123421 17783 2094 

152399 206496 4094 

151355 206672 4094 
1246.79 1784.11 2094 


2737919/1/93 
287631371/93 
21749 wm 
1348J19/1/93 
137798 471/93 
138098 *nita 
133B191971/93 


36203 3094 

41529 3094 

41607 W71/B4 
T778J 2094 

2B84JB 4094 
206072 4094 

1764.11 2094 


6808 23084 
*3704 2171/66 
OTU 21/1/86 
6Bt£ 14/1/68 
1363.76 31712® 
US3J9 31/12/92 
6192 13712/74 


m Xd ad}. TOW 
ratio ytd 


1 1993/M 


MOB 


Low 




low 


10 NMBUO ExnucnOMtm 
12 FdradMB tndustiics(41 
is 0 i. kuepratodp) 

16 IN Expbratan 8 ftoHIII 


2535.01 -07 2563.63 251092 2531.12 214590 359 491 

396990 +09 390004 3044*4 396890 313060 125 <46 

2436.12 -1.0 248096 242397 2433.11 202010 370 5.12 

164046 -09 1651.71 183018 164094 211390 394 390 


25.29 2793 100251 
2050 2093 108394 4M795 
2495 3199 98455 251079 
3293 OOO 104394 2143.16 


9094 165000 1971/93 268396 9094 96020 19086 
2094 289190 7/S/ta 410795 2094 1SOO0O 3T/J»85 

9094 171090 1971/93 261075 9094 96230 200* 
873m 166898 I57U93 3844.10 BWW 66030 2877/86 


:xi GEN MUW»nimEBS(2941 2152.64 -07 216750 

J1 BuMmo 4 QvBBuc6on(31) 143194 -1.1 144690 

” QuAlrn ttaUt 4 UeicbspD) 22762) -04 226626 

23 awrtcabGOI 24H.B6 -04 246069 

24 CMraned Wusma6<161 215021 -09 217074 

25 OMrtrt: S Be a &MNM M5S59 -19 

» Ewnueringira) i«993 -05 tnOM 

?7 Eng fneefe, WWdes(l3 23WOI +02 2364.14 

28 Printing. PAW S PCfcgffn 304551 +0.1 304396 

29 TtsUffi & AopaidCvl 188794 -1.6 191797 

JO CCTBUSRR GOOOStW) 2453.17 -0-7 

31 erewtlesilT) 2ZC3.C3 -07 

r sonts. wm« a odfraioi 30249 a - 0.5 

3J Food ttamAictui«429 23303) -49 

34 hausd*4d CoBteU9 264087 -49 

3} IteBm CueCfll 1771.80 -46 

J7 Fn»nwwiBcat11<B 3, 2^ ,7 

39 Tot accurn 39&.4S -43 

SBtVKES(210t ^7393 -0.9 

41 Dstn&uWWTt) 310208 -41 

42 Leburo 4 Homtaira 230759 -09 

U McdU/37) 318952 -46 

44 neuters fgodlin 

4b flAaefs. OmecUHa 172656 -15 

46 Suspoil S+fvtcmi'Wt -1J 

49 lianswrtlfil 

51 Utfo sowiecs a BmwmOg 121051 -47 


215997 

145196 

229196 

246266 

215207 

209020 

196093 

2341.83 

301758 

192397 


2174.78 

1452.93 

230296 

2473.50 

217345 

211994 

197192 

235027 

303250 

197753 


173490 

94450 

130920 

216590 

186630 

186490 

146790 

184060 

231320 

191250 


047 490 
2.49 343 
312 2.74 
3.73 457 
427 428 
057 021 
2.79 391 
<40 013 
258 4 99 
357 6.11 


32.15 11.18 
3723 291 
4925 192 
2751 2000 
3068 2490 
1076 250 
4426 6.73 
4253 2091 
2958 150 
2033 158 


107153 
109799 1589.10 
104322 218022 
1075.43 251005 
107723 223157 
97758 2263 . 3 8 
109009 2011.17 
112551 *51071 
117014 
104031 


2094 

8094 

2471/94 

4094 

272/64 

4/Z/94 

2094 

2094 

18/3794 

4094 


169(50 

79040 


175820 

1853.10 

129750 

188790 

214010 

178150 


1371A3 223298 
ayi/B3 212550 
1271/93 238372 
1371/93 281005 
1971/93 223157 
1371/83 22031 
1/1/93 2811.17 
19693 251071 
1971/93 304551 
14093 232900 


2/264 

wtm 

24/1/94 

4094 

2094 

4094 

2094 

2094 

16094 

271067 


98010 


96450 

87050 

90450 


98250 


97350 

96050 


1471/88 

9/9/92 

9082 

1471/66 

21086 

29086 

1001/87 

14088 

14/1/86 

24090 


287256 

223099 

303056 

235853 

266018 

178254 

312750 

396004 


286252 

224352 

3061.05 

234450 

2672.18 

1776.18 
307252 
400579 


288547 288150 <04 7.11 16.58 1656 95859 807250 4/1/93 25SB.19 21/7/93 

225154 217250 4.10 7.72 1557 1151 97<80 «KS UW04 191550 4093 

313252 289100 357 656 1027 1953 99059 322553 24/1/94 257950 1Q711/93 

234011 248090 455 7X2 1650 11.13 95651 268054 191/94 213750 21/7/83 

271428 237520 325 750 1657 157 92377 289114 16094 2(5659 21087 

1784X2 1604 40 311 657 21.40 £96 100557 1906.13 197104 16S750 1271103 

306758 312<10 455 7.15 1654 3555 96699 379250 47103 2E8C70 21/703 
4077.10 414750 553 035 1457 0.00 BIAS 473353 2V1Z03 857(50 19003 


MW 

346750 

9B0QB4 

29KI4 

2BCX0 

418090 


22/1202 

isnw 

11/5792 

197104 

74094 

26007 

14/102 

2072/33 


96750 

86250 

96750 

9(010 

827.(0 

97250 

9SU0 

aernn 


14/1/88 

1*708 

14/1/86 

147106 

21/708 

21/108 

13/108 

9708 


200157 

310378 

232755 

3214.72 

164067 

1753.11 

(71654 

259259 

122146 


209223 

3101.10 

231355 

323257 

1647.42 

1751.73 

173158 

256655 

122044 


210150 

309029 

2325.86 

326150 

165450 

175049 

173080 

2SB623 

122650 


182000 
2599.10 
1777 JO 
222750 
211950 
1535.00 
155020 
210150 
133350 


235 137 
273 458 
011 4X0 
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075 079 
276 657 
239 6.75 
358 331 
351 356 


2253 0« 
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2755 1355 
2089 1450 
1290 133 
2356 454 
1088 156 
3001 552 
3068 aw 


98759 
105026 
111094 
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90056 
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331953 2004 

236052 177204 
334011 17/204 
2ZUD 267103 
193424 2971263 
1868X3 2/2794 

289556 37204 
140059 6093 


173959 7/503 
234650 201103 
MB50 *31503 
214050 2571/93 
148550 11/11/93 
KZ7-20 11/203 
1425X0 1/103 

191250 137103 
112051 1371203 


220757 1971/94 
331953 2094 

238082 17094 
314011 17094 
223029 287103 
193424 2971203 
1606X3 2094 
3094 
167707 


94490 


975X0 

97021 

917X0 

970.10 
93900 
96000 

963.10 


237106 

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207638 2068.54 20BS73 
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3238.1 

3870.3 

1641.0 

3Z1&0 
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322S.9 

3863.6 

16365 

3218.4 
38809 

1832.4 

3205.9 

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1150 


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JKSSSSmI 3X/127X 1000.00 Al Other 


13585 

30665 

18445 

2984.0 


13595 

30740 

1856.6 

30075 


1380.4 

3096.8 

18703 

30735 


dW Equity ueeflon ar grow 


31/12/75 100.00 
3074/82 10000 
31/12/77 lOaOO 


Recovery 
hopes lift 
Wellcome 


Shares in Wellcome, the 
pharmaceuticals group, experi- 
enced a sharp turn round in 
late trading as dealers said 
forecasts were being moved 
higher on expectations of a 
pick up in the company’s for- 
tunes. 

The optimism focused on 
sales of Wellcome’s headline 
product Zovirax, which is sold 
as a treatment for shing les and 
herpes. Sales growth for the 
drug had dwindled to 7 per 
cent last year, but the latest 
prescription data from the US 
has suggested it has recovered 
to around 13 per cent This led 
the more pessimistic analy st* 
to adjust their figures - one 
broker apparently raised its 
foil-year forecast by £ 20 m to 
£720m ahead of first-half 
results on Thursday. The fig- 
ure is at the higher end of a 
wide range from £ 680 m to 
£750m. First-half figures are 
predicted to come in at 
between £340m and £367 m. 

The share price had lan- 
guished by I4p in early trad- 
ing, but recovered to close only 
2‘/i lower at 627%p. 

Allied tumbles 

Shock news that Allied Lei- 
sure had made heavy interim 
losses, passed its dividend and 
lost Its chief executive had a 
predictably shattering effect on 
the shares. At the day’s worst 
they had slumped 53 per cent, 
before finning slightly to close 
a net 16 off at 27p. As well as 
posting interim losses of 
£ 16 . 12 m, the group also took a 
£14 -23m restructuring charge. 
It was announced after the 
market had closed that the 
resigning chief executive Mr 
Richard Carr had sold 1.5m 
shares. 

The decline in Allied’s two 
main areas of business, ten-pin 
bowling and nightclubs, gave 
rise to worries over First Lei- 
sure. although analysts were 
quick to point out that while 
sharing the same markets the 
company differed in manage- 
ment and style. First Leisure 
slid 15 before recovering to end 
8 off at 3I3p. 


NEW HIGHS AND 
LOWS FOR 1993/94 


<BLTS Cl) Trim. 2pc L 19B4. BANKS 01 
suntomo Truer & fik, BHEW8BE8 f1| 

Mw. CHEMICALS (2) HoacM. tanr. 
DBT1WUTORS (Q HBXtern. ELECT8KC 6 

ELECT EOUP « Mcrionte. NoUl Comm. 
BKVNEEHNGi (0 Ahm. CJydB Bo*crc. Uwrad. 
RenokL EXTRACTIVE LMDS (4) Anglo Atm?. 
Cool m Mum. NSK VKraBUn HEALTH 
CARS (!) Acrwntnm tall.. HOUSEHOLD 
GOODS <1) Daterey. INSURANCE « SorigwK*. 
Trade taoemnXy. INVESTMENT TRUSTS (f) 
Gerard Conttd. cap, INVESTMMT 
COMPANIES (1) Korea Lberai Wrts~ leisure 
A HOTELS (3) CrockJarcb. P nrW N ia rt Irian, 
Saoy. MEDIA K Hodder Headne. Hofenn 


EXPLORATION A PHOO(1 1 OHq Rnoirow, 
OTHER FDMNCML (TJ BruolSaaCn. PRTMO, 
PAPER A PACRO « D» Lo An Portals. Smpr. 
BmUi BJSLTtnetay Robor, RETAILERS, 
0ENERAL P> 0*wr. SUPPORT «SIVS CD 
KHarrmoo. MmE. AMERICANS (I) GBeQo. 
CANADIANS (1) Ho Aigem. 

NEW LOWS (20. 

OLTS (10 BUOJ3MO A CNSTRN fl| 
W UN irt niAu Eoanokteo. BLOO MAILS A 
HCHR (II IN Idler. ELECTRNC A ELECT 
EOUP P) RoxeRta, INSURANCE (|) Abvuer 
Lk»Ul tacce. INVESTMENT TRUSTS (4 Abduel 
Envg. CcrW onA iL Do MAm Friend© Prtw. 
EMcaL LBSURB A H0TB5 <1> ABed Lebure, 
MBNA (1) Cdd Oreentaee Trott. OTHER 
HNAHOAL (1) Enagy CepkM, OTHER 8SIVS 
A BUSHS (1) S ln te A McEata. PROPERTY (1| 
ChteN AL SUPPO R T StHW » LeennBnSi A 
BtadtaH. SatVOWxi (CL TEXTILES A APPAREL 
fflteggaeM. 


A rumour early in the ses- 
sion that the George Michael 
versus Sony case had been set- 
tled out of court - later denied 
by all parties concerned - 
unsettled music and rental 
group Thom EMI. The shares 
retreated 22 to ll22p. 

Hotel concern Forte contin- 
ued strong with sentiment 
again underpinned by its 
potential purchase of a French 
hotel chain, stronger links 
with the Savoy Group and an 
improving UK hotel market. 
The shares added 3 to 260p. 
Savoy ‘A’ gained 35 to I115p. 

Continued crude price weak- 
ness and the forthcoming 
OPEC meeting kept the pres- 
sure on oil stocks, although 
Enterprise - down 2 to 411p - 
and BP - off 1% at 367% - were 
resilient. A successful drilling 
report lifted Exploration Com- 
pany of Louisiana 13 to 79p. 
while Goal Petroleum rose 2 to 
67p after boosting its year-end 
dividend from i.4p to 1.45p. Ms 
Irene Himona at SGST said: "I 
think people are treating the 
oil price as a temporary aberra- 
tion which will recover." 

Las mo, expected to report 
reduced losses next Wednes- 
day, fell 2 to 130p. 

Standard Chartered rose 22 
to 1160p. Swiss Bank is said to 
have been a keen buyer over 
the past few days and other 


brokers have focused on the 
forthcoming share split which 
is expected to attract further 
support. The bank, which is 
heavily exposed to the Hong 
Kong market, rose in spite of a 
380-point fall in the Hang Seng 
index, which helped drive 
HSBC down 37 to 787p and 
Cable & Wireless 11 to 44lp. 

Barclays held up well, with 
the market regarding it as a 
strong recovery stock. The 
shares fell a penny to 552p. 

S.G. Warburg fell 19 to 765, 
hit by the weakness in bond 
prices and some profit-taking. 

A profits warning from dou- 
ble-glazing group Anglian for 
the year to April pushed the 
shares down 28 to 2S7p. Mr 
Malcolm Brown at agency bro- 
ker James Capel downgraded 
bis profit forecast by Elm to 
£25.5m. However, Caradon, the 
second biggest player in the 
area held steady at 396p. 

Milk group Unigate was 
lifted by a buy recommenda- 
tion from S.G. Warburg. With 
the shares currently yielding 
some 6 per cent, the broker 
said the stock looked attractive 
for income hinds. The shares 
bounced 7 to 360p. Unilever 
was said to be undone by a 
large line of unplaced stock, 
the shares trailing 23 to 1058p. 

McCarthy & Stone put on a 
penny at 73p after announcing 
a £5.5m rights issue. RMC 
improved 10 to 980p on thin 
trading: a handful of buyers 
found the market short 

Amersham International 
added 29 at I090p. There was 
vague talk of a share split but 
it transpired that the price was 
squeezed up because dealers 
were short of stock. 

Mirror Group Newspapers 
added a penny at 194p as the 
Monopolies and Mergers Com- 
mission gave the go-ahead for 
the joint takeover of the Inde- 
pendent newspaper. 

Public relations group 
Shandwick rose 3%p to 59%p, 
in spite of asking shareholders 
for £18.9m via a one-for-two 
rights issue. S.G. Warburg 
believes that while the ex- 
rights price of the stock is 
S4.5p, the shares deserve a 
market rating which would put 
them IOp higher. 

Engineering group Lucas 
Industries closed 4 ahead at 
2i9p, after announcing that Mr 
George Simpson, formerly 
chairman of Rover, was to 
begin his new role as chief 
executive at the begining of 


450 

+ 

16 

50 

+ 

5 

95 

+ 

4 

79 

+ 

13 

B9 

+ 

7 

27 

+ 

3 

146 

+ 

8 

333 

+ 

16 

421 

+ 

13 

59 Vj + 

3 V: 

14 

+ 

3 

42B 

+ 

12 

27 


16 

287 

- 

28 

132 

- 

20 

787 

- 

37 

36 

_ 

5 

1169 

- 

54 

151 

- 

19 

261 

- 

12 

354 

_ 

13 

765 

- 

19 


m CHIEF PRICE CHANGES 
YESTERDAY 

London (Pence) 

Rises 

Britannic Assnce 
Campbell S. Amrst 
Cooper (F) 

ExplCo Loufe 
Gresham Telecomp 
Hunterprint 
Unread 
Porvair 

Quality Software 
Shandwick 
Spetialeyes 
Vendome Uts 

Falls 

Allied Leisure 
Anglian Group 
Davenport Vernon 
HSBC (75p shs) 

Needier 
Schrodera 
Sherwood Group 
Tetspec 

Travis Perking 
Warburg (SG) 


April, a month earlier t han 
anticipated. The group reports 
interim figures on Monday, 
and a broker’s recommenda- 
tion boosted the stock earlier 
this week. 

Machinery group Molins 
gained 9 to 558p. after report- 
ing an increase in profits and 
an improved dividend. Profits 
Improved by £7.8m to £49.7m 
and the dividend was raised by 
1.4p to 15.4p. 

Motor dealer Lex Service ran 
into profit-takers and the 
shares eased 4 to 535p. Bargain 
hunters helped engineering 
and aerospace company TI 
resist the poor market trend. 
The shares closed a penny 
ahead at 3S6p. 

Environmental company 
Kentnkil was in the doldrums 
following disappointing full- 
year figures and profit down- 
gradings by several brokers. 
The shares relinquished 7*4 to 
241p. 

Eastern Electricity held 
steady with a slide of 2 to 630p. 
After the market had closed, 
the company announced that it 
had purchased 250,000 of its 
shares at 629p each. 

The recent series of success- 
ful flotations continued yester- 
day with the market debut of 
Partco, the independent auto- 
products distributor, whose 
shares, offered at 200p, closed 
at 224p. 

New Footsie entrant De La 
Rue gained 22 to I02lp on the 
inclusion. 


Signal 


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FINANCIAL TIMES WEEKEND MARCH i 9/MARCH 20 


WORLD STOCK MARKETS 


NORTH AMERICA 


OWT 0 ) STATES (Mar 1 B / US?) 

PM 


.. 17V Ilia 2.9 ... 

_ 67 V 54% £8 22J5 
-I 73V m3 .-302 
+V 5GV 29% 4A 30.1 
•V 30% 73 S 2J 1M 
+ % 12% 7% 4.8 11.7 

+% 37% 19% 100 1U 
66% 43% 40 I OB 
34 24V 1JIXB 
!% 16% 4.9110 
-V 46% 37% 19 ZB ? 
+% 28% 201, 1.2 16.1 


Drayfa 
OUUPW 3 T- 
□unam ax 
DuPont sa 


ZB% 2.0 27.7 
fl»j s.i » 
17% 2.7 1U 
3SV 10 18-2 
35% 9.0 1U 
St 40 2*9 


Hot* 3fli 

MmMd) II* 


&sr iSs 


ASA 

ADHL 

Acmea 9% 

MMk ‘ 

AetiuL 

Aft* 

AlRTOI 17% 
Avne "■ 

AfeCufl 


44% 33) 706 
15V 3.1 126 
36% 27120 
23? 54 18.5 


25V 0.1 27.7 
9V 14 423 
48% 29 194 
44 7.7 
1.7 72 


Tnoeca 57% 

T«*em 11V 

?S 3? S£ 

TXU* 37% 
Ttrtn S7%rt 


39% 24 222 
3 20 a 


46V 04304 TfefleO 65% 


AicnM _ 


AmaxGd 7 ‘S3 
AmdaH lit 
AmdaW 48t«l 
AmBmd 31% 
AmCwn 44% 
AirHVr 32% 


« U4 JOJJ 

. 22% 34 ia5 

._ 20% 23% 64 124 
*% 40% 20 V 14 44 
4% 27V 17b ... 84 
*1% 02 Si £1 _. 

+% 10b 6 1.1 64 

... 6b 47a a7 T.3 
-V 56% 42b 14 154 
-V 40% 28% 62 66 
59% 42% 34 24.7 


SCOtJak 45 
Eanm 

rertta _ . 

EmsnEJ 63 

am "a? 

Enggl 15% 

any?* i£l 

Boon 65% 

asa J 

34% 

Fao*a 6% 
Fodt*D 76 


.. 34 314 
38% 2.0 23 a 
“V £2 19.1 
_< 24 184 
19% 1.4 _ 
22% 24 269 
13$ 1.3 — 
31% 54 124 
10 % __ 16 3 
67 V 4.4 166 


tt55° itt 

tea as 
tecoc 


46V 04 304 
— ._ 134 

24 224 
.. 16 414 
30% 24 174 
2S% 24 103 


44% 34 104 
23% 43 114 
12 % _ _ 

6% 24 

10% ...176 
23% 36184 
38% 6.1 — 

19% _ 2.7 
28% 17 114 


NBOnod 17 

Eg ^ 


25S, ^ 

FMPfU 26% 


- 1 * m 


AmExtr 29 ‘a 
AmGcfl 28% 
rtmaiA M’S 
AmHonM 59% 
Aiff no 64% 
AoiMn 52% 
Antitor 52% 
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-8 472 333 
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-13 1.3157 B2B 10 


Z (TALT (Mar 18 /Ural 


1% —276 
22% £7 96 
1#V £4 256 


20%. — 409 
22% 50 110 
27% 10 139 
» 26 1X7 
21 % — 180 


1 X7 10 
24% —4X8 
4b 16 — 
14% 30 8*0 
14 XI 500 
27b XS 80 
8% X4Z16 
10V 09 1X4 
6% — 30.8 
20% XI 179 
£15 86 11.1 
33% £9 21.1 
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-Jj *9% 27% ?2-i 


32% 03 1X0 
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31% 

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*1$ sr* 


•UieSI 41 b 
»*U4 102% 


-2b 49 


- 20 
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10430 

20 240 

97% 3.4 770 
99V 4.3 1X7 


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41V X7 1X8 
29b £0 136 
13% 89 79 
22% 16 240 
24% 10 170 
S2b 23 2X1 
39b 46 2D0 

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70S —180 


15 £0 2X4 
19% £8 1X0 


18V 56 113 
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a 50 £1 
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14V — 1X3 
» 39 820 
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5 10 580 
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18b 40 146 
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-10 1,010 823 X4 
-7.40 29fl 240 — 
-8 683 882 XX 
+7 1750 £380 X7 
-4 787 536 £3 
+31 1.480 XS1 £8 
-* 1,399 942 17 
*430 237 138 59 
-£80 238.4017430 — 
-42 4090 2050 10 
-860 205 131 4.1 

-6 1.570 980 £7 
— 481 300 £2 

—460i 306 20X91 £4 
-19 1065 330 4.4 
+« 858 458 £0 
-1X50 SOI 320 — 
-8 7J7 526 90 
-20 8050 £212 £7 
-4 B30 3BO — 
-60 439 240 15 
-S 960 &90 £8 

-29 2691 2014 £4 
—5 703 332 20 
-5 469 320 46 
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+4 7.144 883 30 
-15 1088 571 — 


♦1 830 381 1.7 
-5 301 B 1,725 30 
*6 2089 1 280 £3 
*0 888*0X20 26 
+60 99 23.70 10 

-8 182 11290 60 


BCanm502Dal 
BNcAg 4698 
Bftoow 1005 
BaSOQ 83 
Brwffii 28.900 
Bupo 10,700 
OT 2094 
CfTSc* £450 
Cnrflr 1600 
Ctfbl 1950 
CrKl 2681 
Dmttl 10698 
Farfln 1009 

au 6.025 
FtelPr 3010 
Fkfia 4X3 
Fwfip* 12000 
Gemma 1,485 
GenAn 38030 
SdWJ 3000 
WPr 2X280 

■a 12600 

IttcO 10,795 
1MCR1 11,780 
6620 
13600 
Uefflr* 16520 
MOTW 1026 
2630 
4605 
£402 
HAS 24000 
RHNK 10070 
SASBb X31D 
SB* 4080 


-70 X405 3.910 X4 
-31 *030 £910 1.4 
-35 2020 1.538 10 


-602X49013659 10 
-260 II. BOO 4.632 — 
-98 £470 870 £1 

-20 £480 1,115 4.1 
-20 1020 1055 — 
-60 1.715 870 _ 
-27 3095 £130 £3 
♦SB 12010 7075 1.4 
-41 1B05* 1053 __ 
-85X140 268B £0 
-63 3086 1075 £1 
-55 5013 £730 4.9 
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-29 1637 1030 4 0 
-770 42.JS5 29J4fl _ 
—40 £440 2000 __ 
-420 M6W 8,410 1.8 
-110 14,400 12015 _ 
-8011400 4010 — 
-140130*0 7010 10 
-155 5080 2JOB 10 
-300 17630 1X<00 _ 


- S8BT2HXAIK) (Mb; IB /FfSJ 


*3r 89 

S5f§ £47? 
1037 


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{-58 


TXWPlflffl 10 


-43 1,288 332 _ 

-90 £638 1,170 _ 
-95 4030 2066 _ 

-*^3i0 

+301X350 7,188 — 
-190 10300 4,580 10 
-140 4060 1,319 1.7 


1000 

F(ta)» 2030 

*9 

870 

152 




fvaaflr 1650 

pfirnr 503^ 


US INDICES 


Ms Mar M* 

18 17 18 


19937* 

t*qh Low 


I9SJM StacecomiattH 

MSA UN Wl Lon 


Ccma CSrTGTT) 

AoM 

A) itonxtta M 0OI 
43 Mtnn^l.’i.HOi 

Austta 

Ovdd AUxrtJXIZ/H) 

lrxtad hdcC'lflll 


Ml 2064X77 20522.41 2547X40 I6W9* 1218708 80183 


288117 87(94 1504.15 29293 


21535 2164 4 2173 5 234X88 3094 149X00 130/93 
liCBa 10239 10*05 113X10 3094 58170 130/93 


C8S TVMknfind 83) 43X5 4377 

CBS *■ Sta SEnd S3 2803 283.6 


•49) 31/1/94 25X30 4MU 
29180 31/1/94 NXED 13/1/S3 


44X83 44X18 44X75 48008 KW4 30008 14/1/93 

1 160 BO 110X79 1)6901 122205 1/2/94 71X08 1571/33 


Cap 40(1/7/96* 2233.16 228X77 


243X84 3/394 2290 72/7734 


OMSEOrnen/S » 117201 118X97 


WHO 2BQ94 


FU2U il.TIIJ 
Brad 

OfflKbu CAT2WI 


1511 74 151X11 151X39 15420B »2«4 112X48 47VS3 


Mantfe 385X14 384X15 384969 097800 324105 397X08 4122 

(3171/94) (2071/93) (31/1/94) (2/7/32) 

Horn flows 10X29 10X35 10X17 18X77 1(0.17 10X77 5*99 

(18/10793) (150/94! (1871 V93) (1/10/81) 

Trantport 174753 175208 173150 18B229 145364 1BB229 1207 

Qnm (471/83) (272/94) (877/32! 

UMfcS 20762 207.42 20703 25X46 70703 2008 1060 

(31/8783) (15/3/94) (31/8931 (8M/32 

DJ md. Day's NgTl 388164 087963 ) Low 382108 (381904 ) fTTleomted^ 

Day’s lagh 3885.14 P88&09 ) Lon 384X06 (3830® ) (A cru l *) 


fmnm 1050 
FthsBr 1£450 
RdwGn 7070 

-ISO 

8*5 

£»0 


-14 998 469 1.3 

-10 l.BOD 485 £6 
-12 1,407 1 015 10 
-I ITS 07.73 _ 

♦ 10 1.730 1.150 40 
-10 £705 £530 — 

+1 KO 191 50 
+13 1640 1.110 — 

♦ 501XBM 5080 00 
-155 7070 3030 06 

+60 0300 1,387 XI 
-25 10BS 830 — 
-460 280 146 _ 

-ra«0*O£»O 10 
-60 4080 2060 10 
-10 4050 £700 10 
_ 7,725 6M 10 
-191,100 »l 10 
-13 531 304 30 

-O 2S9 14X50 — 
-15 815 495 _ 
-8 775 484 — 
-15 885 07 — 
-181017 845 X4 
.1 « B2J ™ 
-051015 7000 — 


AFRICA 


Marta Com p/l/BS 265798 271301 


330X37 *71/94 127088 4/1/93 


04 1 303X0 1408*0 14084JH 18/3/94 7107 4/1/53 


Cauda 

4V-JS Wnef|IL*75l 
urvjrjpi II J751 


ILl J83980 378881 383880 17(1-94 274301 21/1/33 

M *5*100 4525.60 499100 1/M* 327X80 2171i93 

Id 713033 012X77 218289 I CAM 172097 21/1/33 


FliA &n (31/ 1 £80) 

Derail 

Cmwttpw M OH.-gt 

FMand 

nx Genracx 12X01 


Id *3765 437X3 488780 4fl»4 291259 10&-93 


09401 397*3 39958 41X39 272/94 28)80 471/93 


BTA (1977) 3IG90 375X1 

Shptn 

SES Al-si»ep7«79 54184 55X12 

SBUtaAftto 

JSE Gold C9U9778) 204X09 195X0 

JSE ML (28978) SI4T8V BIOXO 
SooU Kona 

Korarttamewi/Bor 83107 89X56 


923X80 18/29* 180X20 147X793 


64181 4/1/94 3B410 1371AQ 


231100 4/1/94 71980 S7U93 

81 4100 18094 433300 19W93 


CoeoiBta t 

*7000 

46X47 

487 JX 

48208 

CW/94) 

*2305 

(8/1/53) 

48200 

wm 

MEditaf 

55220 

54X78 

5470S 

58909 49X46 

(2/2/94) P6/4TO 

56909 

CKWO 

ftweta 

4423 

4441 

4181 

4X40 

pawas 

3989 

m/sra 

4X49 

RISE Cons 

301.11 

26X34 

axes 

207 J1 

wm 

23621 

(8/1/33) 

ZE7J1 

onm 


SOUTH AftSCA (Mar 78 /Baa? 


97X29 TTim 90X93 8033 


47063 48962 48X13 487J8 39X8* 
(2094) 1871/53) 
80385 78X99 78362 BOUB 84X87 


IflbXO 18/60 18709 197X08 4/2/9* 843.10 22/1/93 


HUMS (3071285) 33700 33X97 


31/1/94 Z1X8Q 4/1/50 


071394) (36/4/53) 


48768 2X31 

E/2/94) (97)2/73 

BUS S487 

(17/3194) pt/IOr/2) 


Trance 

sot 30 (ii/izxa 

CAC M3I71J.X1 


1491 03 150*40 150107 158X20 2/2/94 1114.19 28/1/93 

3221 04 224704 2742.71 23ESS3 VU94 177X21 Tansn 


AHaRMntaCen (1/2/37) 150000 151800 


150X90 31/104 87X10 2B7U93 


Gcnu% 

FA! /KtrGl. U'W 
Caicicntatul(1£X3i 
dm an2«-3T 


82X29 83X60 8397X 85X67 4/1/94 58X9 14/1/93 

2*3500 236X30 237400 20900 -Vi (94 KB40O 14/1/93 

215X81 217X06 2172.73 22E76B il/34 191800 101/93 


9ms Bk M (31/1Z-S8I 133484 134871 

SBC Gemini (1/4/87) 99X45 100877 


142304 31/1/94 90400 11/1/93 

109X29 31/1/94 67X70 11/1/93 


Dow Jones bid. Dm. Yield 


HtagMsn-.aaB’Bsr 527*01 539706 


S 4 P Ind. Dtv. yield 
SAP tmj. P/E ratio 


Mar 11 Mar 4 Fob 2S Yn ago 

2.B1 £82 £62 £98 

Mar 18 Mar 9 Mar 2 Year ago 

£37 £37 2.39 2.44 

24.58 24.53 24.34 2882 


Amro skim: soi 

Htq Ann 

Ki4 Seng(3l.7.E4| 

tafia 

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10* PI 108X68 1087.73 119408 Wl/M 6B7JZ 571A3 


913X31 961X13 973JB1 1220109 4/VH 543700 471/93 


3301 9 379X9 3191.9 4287J90 387034 210007 204/93 


Bmda* SET DOM/75) 1X4884 128864 

Ttatsi 

BanlPd CdwJBI 13H) 143X00 1573X0 

WORLD 

MS Cantu n (171/706 63) r 6Z7 2 


175X73 471/9* 81804 imS3 


Open Lsiest 
Jun 471.85 460 85 

Sep 47120 *70.75 

Dec - 47325 

Opm «ww nswe* are for era 


8 500 OIDPt RITIIHES SSOO bmea jratex 
Ounge W^i Low Est vaL Open kit 


.._ 1050 700 50 
-00 a 500 zb 
_ 140 B5 £2 

_ 146 7® 12 

+2 229 66.75 1.8 

+3 43) IM 20 
♦1 118 74.75 £8 

+00 57^5 2600 _. 
+105 3400 875 £0 
— BO 18 80 
— 3X75 £25 _ 
+0O I IS 5700 00 
*.10 11.35 200 1 A 
+£26 B40O 2926 £7 
♦00 1300 £S0 5 7 
+1.23 3X50 800 37 
+05 33 30 40 

_ 05 8400 XB 

+200 80 22 3-0 

+.16 I £35 505 40 
+2 118 53 £0 

_ 27-£n 5.75 ._ 

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- 60 84 80S £1 

+JJ5 3.60 X62 1.7 
+1 72 3175 ZO 

... 3Z50 48 10 

+100 81 240S £8 

+1.75 OS 24 £3 


£90 471.65 468.10 71 JK 176.771 

■zra 471. SO 470.75 S?7 4, JOS 

- 47X25 16 4.040 


LuciOCaiVlKIttBa %WB3 50905 K) 61208 S/1 <84 Z7X3I VI/93 


no iVr*fLl/j6) 190909 id 191X04 2B8Z.1E 2071.94 1191.19 11/1/93 

stfr 

B«a Cumm (a ifyrrj 67J02 680 6 676 75 88903 18^94 44833 61/93 

US Omni (41(9*) 10770 10830 IOKL0 UOZJJO 18/2.94 94X00 1071A4 


Eirtaat* 100(26710190) 14*507 1*6188 148520 154X19 3171/94 108302 1371ffl3 

Bn Top-100 (2V69Q 124427 125742 12SSS9 131101 2/2794 8BU3 1VU93 

JCflOeUnps (3VI 2,-88) (u) 312.70 01705 395.W 571/94 1EXS2 4/1/93 

Banes Bno9l7/1«a 16X44 16204 16128 18£7z 1*094 9001 4093 


ACTIVE STOCKS 


TRADUM ACTTVTTY 


■ CAC-40 STOCK POOL F17TUHE3 (MATIF) 


N+Aa Z5 (165.-4* 3HG9-S5n592.16 3K7T.77 21149.il I3W3 1507X71 2971 IA3 

NAM. 3aa Il.ixxa 30209 30112 304 03 3D6A4 1011/93 24X04 2901/93 

L-p* (4.T.5tf 164724 1648.53 105327 1333*7 A483 125000 2S%53 

3d SectMi |4 , '.‘68) 221£10 222) 32 221377 730431 116193 1GS1JZ 26nf33 


HXE OonpiA'-Lffi! 


Open SenPnca Cnange 
Mar 2251.0 2233.0 -24.0 

Apr 2260.5 22430 -24 0 

May 2258.0 2247.0 -24.0 

Open miF V"* la pe+ten day. 


Era, vol Opai inL 
25.779 K448 
1.126 4.923 

1JJ34 5J33 


100(06 102720 (a 13I44B 571/94 01428 130/33 


Hanson Hr 
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lb 17 1 

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star IS 

737D.100 

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New York s 

30X883 

30X118 

30X263 

3,6Xi9O0 

20b 

♦1% 

Ana 

21.105 

17.041 

15.101 

3.55*^00 

3JES.700 

61b 

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-14% 

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msE 

334J97 

339 006 

3X1080 

1714JJ00 

53b 

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Issuts Traded 

2.764 

£772 

£787 

£810.400 

SM* 

+% 

Ron 

1.751 

1,354 

1.110 

£338500 

43 

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Fata 

1AM 

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2.434.900 

565 

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609 

624 

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89 

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r^— « 

PnmGc 7200 
4X25 

S 34 50 
2200 
notpi 6445 
Saltan IDS 

aseiCG 18 

Htw „ 
3MMm 32.754 
SIM 

OgOU 5300 
Tr^ 39 
vfenfi 467 
wma 4023 
W Deep 135 
■Ml 64 


WM 1135 — 

„ 2900 16-65 ZD 

+100 sa 61 8S 

_ 74 47 _ 

+1.75 5X50 » £2 

+00 3X/S 2320 1.0 
_ 26 SO 1X00 10 
-25 8X75 57.75 10 
+2 106 07 20 

+00 18 1100 70 

+25 8700 54 £8 

38 17 10 

+0 100 3400 10 
56 37 1J 

.... 401726 18 

+14 48013650 3/0 

+25 42 1.90 _ 

+10 216 4300 20 
+125 80 24 17 


PACIFIC 


jafM (Mar 16 /Yoi) 


ii- Mai if T/Mon wr«pc«i Puce 5271.10, Kano Cun^> E* «□ 4Z. 8w wauei of oh neeaa m 100 eunpc Ausznda Ai Onunaiv 
jnl M+infl - SCO. AicBM Tijdcd, BFL20, HE* Oen.. MB G+m. SBF290. CACAO, tan Tcp-lOX HEO CmA: TaaKo CmWmo 8 
MlVdi ml DM - jU i MO: JSE Gdd - 2*5.7 JSE » inAomds - 26*0; NYSE AI Gannon - 50 and Slmted art Poor's - IX §§ 
HVrtoai 4 Toronto, p) Clawd. (u) LkcwaMHe. I 8BU« onalMan krte*. Mb 10 - 2140.39 -SMH 


t Coiracdon. ■ Cdcdalfd el 1000 GMT. • Exctaftig bonds, t brtwMd, (*a UfiSBee. Fmanod md Tianm a tadon. 

4i The DJ bd. tadm (hmnficd de»b h^u md kan era ttw wsges at die Nffwei end M prices reamed ouitna the my hr eodi 
■code «4ivea da acmd Joy'* Mpi md |«» (supdiH by TeHuee) npmrt me mgneei md bmeet vNubb im die Mo* ikb raeched 
Ctaing die dry. (The agues m br a Hate an peirtwo dnybj f Suttacr u ortdd receKrtedun. 


If this page gets your heart racing, you need a Pulse. 


- 1.400 1 

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-20 1060 
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*20 1,790 1.COO I 

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-15 1,060 *75 
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919 870 
-10 3.150 £260 
-20 1000 1030 
+55 850 396 
+ 10 2.75 0 ZJJIO 
.... 1.030 1.480 
-8 570 352 
+25 1 080 410 


- 52 2500 1.B 

-1.10 7700 5000 — 
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*.10 25 X10 XI 

—00 10X50 71.70 4.4 
705600 33 ZA 


oaecyo 1 .XM 
tr m«u 828 
MM 515 
»»&n 1010 

DBM* 1080 
□War 441 
MM3P 1.180 
OTotfM 775 


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—4.80 S3 2XB0 70 
-1.40 9300 3500 18 
+.10 48 21.75 90 

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70 8800 4X50 12 
JO 84 23.10 £1 
-1.70 52 Z705 XB 

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-£10 8300 2200 4J 
0010X20 8600 £2 
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+.10 3500 1800 XB 
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-100 131 9X70 20 
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-1.40 21540 14Z5U 4 3 
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£MO 
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35 £4 
7800 00 
1306 — 
60 10 
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108 £1 
130 1.4 

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15250 1.4 
87 1.1 
163 10 
147 10 
97 20 

78 £7 

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mcrtiiH 

HtCraa 1060 


Hafcg 1 £730 

HKua m 
HkuBk £710 
rtonoaM 1.760 


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SnwflrM i**J 
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SunBfik 2.200 

SunCom Big 
Suncbm 4(8 
SumDj 1.040 
SumOa 1 .MW 
GumHvy *20 
sun a* »B 
SumMu 6>5 
SumVt 2BJ 
SumMM 005 
SunUU bd* 
SumRBr 1000 
SlABTrB 1.570 
SunWhs 757 
SurUM I.7N 


letaPn 2090 
Ta+Ds TIM 


ThraSh Ml 

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imfcfcp 2.910 

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TXyBA IjKM 
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10SU 

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mSPw 3.3(0 


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TDWn 1.630 

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+20 6/250 £560 1.9 
—40 6,700 4 , 190 _ 


-22 1.180 677 
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+2 485 270 

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FINANCIAL TIMES WBct' i?Mr% k .._ 


* AMERICA 



Interest rate worries constrain Dow 


Wall Street 


US stocks were constrained 
yesterday morning by concerns 
over an imminent increase in 
interest rates but volume was 
inflated by "triple-witching" 
expiration activity, writes 
Frank McGurty in New York 
By 1 pm. the Dow Jones 
Industrial Average was 1 42 
higher at 3. 8*56.84, while the 
more broadly based Standard 
& Poor's 500 was down 1.02 at 
469.68. In the secondary mar , 
kets. the American SE compos- 
ite edged up 0.77 to 471.40. but 
the Nasdaq composite receded 
2.03 to 801.82 after a record 
high the previous session. 


On the NYSE, activity was 

spirited* with the expiration of 
stock futures aud options on 
individual stocks an d indices 
lifting the number of shares 
exchanged by 1 pm to 316m. 
That compares with 303m dur- 
ing Thursday's Ml session. 

In addition to boosting vol- 
ume, triple-witching activity 
often exaggerates the extent of 
the market's movement. Yes- 
terday, however, share prices 
were mostly stagnant.* 

Investors began on a shaky 
note, amid speculation over the 
purpose of an unusual White 
House meeting between Presi- 
dent Clinton and the chair man 
of the Federal Reserve, Mr 
Alan Greenspan. While the 


substance of their disco <reio ns 
was not fully revealed, the 
briefing served to intensify the 
focus on the likelihood of a sec- 
ond move by the Fed to nudge 
up short-term rates next week, 
when a policy-making session 
is scheduled. 

Equity investors managed to 
set aside rate worries as the 
morning progressed, and the 
bellwether blue-chip index was 
as much as 17 points ahead at 
one stage. But most of the gain 
gradually melted away, bring- 
ing the Dow in line with the 
other important indices. 

Although most stocks were 
flat, a few sectors came into 
favour. Nan-ferrous metal pro- 
ducers In particular were 


strong, led by Alcoa, up $1% at 
$m. Phelps Dodge was $1% 
better at $58% and Reynolds 
added $% to $52%. 

In banking. Citicorp dropped 
$1% to $39%, even though 
Moody’s upgraded the group’s 
debt The rating service said 
that the move reflected "the 
company's improving profit- 
ability". 

Brazil 

S&0 Paulo added to Thursday's 
losses with a midsession fall of 
3 per cent. Many investors 
were awaiting news on the 
restructuring of the country's 
$52bn debt 

The Bovespa index was down 


Springtime stirs few 
signs of life in Paris 


420 at 13,518 at 1 pm. 

Turnover at midday was a 
low $213.1m. The Bovespa . • • • . _ _ 

mdex closed down i per cent rrospects remain positive, writes John Ridding 

on Thursday, having seen an 0 

P aris in the springtime, at 
least as far as the bourse 


earlier session high of 14,400. 


Canada 

Toronto remained ahead at 
noon, helped by buoyant golds 
and the triple-witching effect, 
in spite of weak world markets 
and continued Interest rate 
uncertainty. 

The TSE 300 composite index 
firmed 8.22 to 4.55L51 at mid- 
day in volume of 51.64m 
shares. Advancing issues out- 
paced declines 358 to 299. with 
285 stocks holding steady. 


EUROPE 


Options expiries leave bourses marked lower 


Yesterday’s fall in the 
Eurotrack 100 accelerated in 
midsession. News that the 
chairman of the Federal 
Reserve. Mr Alan Greenspan, 
had been called to the White 
House exacerbated the deriva- 
tives expiry effect, writes Our 
Markets Staff. 

FRANKFURT fielded the 
expiry of stock and Dax future 
options. This inflated turnover 
from DMSbn to DM24.3bn but, 
in share price terms, it seemed 
to create little fuss during the 
official session which saw the 
Dax index ease just 4.84 to 
2,155.61 from Thursday’s post 
bourse close, still 2£ per cent 
higher on the week. 

However, the afternoon was 
more volatile. It saw an instant 
reaction to Mr Greenspan's 
White House call; there was 
nervous anticipation of the 
German February M3 figure 
next week; bunds took a deep 
dive and the Ibis indicated Dax 
dropped nearly 26 points more 
to 2,129.66 before recovering to 
close at 2440.39. 

Mr Detlev Klug, head of sales 
at B Metzler in Frankfurt, said 


ASIA PACIFIC 


that options which had been 
left overhanging the market, 
with a view to taking profits 
on Monday, were exercised at a 
known loss yesterday after- 
noon. 

In London, derivatives trad- 
ers said that investors were 
selling baskets of equities and 
buying the Dax June future; 
the latter closed 27'/i points 
lower at 2,154 which, on a fair 
value basis (net of carrying 
costs), meant that the future 
was trading at a 12-point dis- 
count tothe cash market 

AMSTERDAM weakened an 
options expiry as well as being 
unsettled by the bond market 
The AEX index lost 6.18 or 1.5 
per cent to 418.32, barely 
changed on the week. 

Hoogovens fell FI 4.60 to 
FI 60.20 on reports of gloomy 
forecasts for its steel division. 
Elsewhere DSM lost F12L20 to 
FI 124.20, Akzo Nobel a more 
modest 70 cents to FI 221.30, 
Unilever FI LOO to FI 205^0 and 
Elsevier, which reported 
results on Thursday that 
slightly disappointed some 
analysts, FI L8Q to FI 175.60. 


1 FT-SE Actuaries Sha 

.re Indices 



Mar 18 

Hourly changes 

0 pm T 040 

THE EUROPEAN SERIES 
1140 1240 1340 1440 1540 Ooaa 

FT-SE BNDtracfc 100 
FT-SE amneft 200 

1455.96 145742 
149086 149842 

1457 D 7 1453.72 144949 
149009 149244 1487.78 

144440 

148346 

1444.18 144541 
1484.43 148049 


Mar 17 

MV 18 MV IS 

Mgr 14 

Mar 11 

FT-SE Euratrack 100 
FT-SE Bacback 200 

M 8148 

1503.36 

146028 146035 

150*42 151344 

145649 

149546 

143146 

147149 


1 Mfea 1000 (ZWIUHfc HghMw TOO - MOJO: 900 - 1«SUT Luster WO ■ 14CU0 ZOO - 1400LW. 


ZURICH wilted under pres- 
sure from the expiry of S off ex 
futures and options and the 
market Cell 1J> per cent The 
SMI index lost 44 H to 2,84345, 
0.4 per cent up on the week. 

Mr Mirko Sangiorgio at Bank 
Julius Baer co mm ented that 
the market had tried to move 
higher early in the week, after 
its recent consolidation, but 
turned back in the absence of 
foreign support. Domestic 
investors, who had recently 
taken profits, were unwilling 
to resume buying at current 
levels, and he expected that 
the market could ease further 
next week. 

Financials bore the brunt of 
the day’s losses; SBC fell SFrl3 


or 3 per cent to SFr423 and CS 
Holding SFrlG or 243 per cent 
to SFI632. 

MILAN saw profit-taking 
which left the Comit index 64® 
lower at 674432, but L4 per cent 
higher on the week. 

Mr Nlcolo Braendli at Akros 
Sim in Milan commented that 
the market met resistance 
when the Comit index reached 
680 on Thursday. Domestic 
investors, increasingly turning 
their attention to next week- 
end's election, were seen tak- 
ing profits although foreign 
investors were ignoring short 
term political developments 
and were continuing to focus 
on the longer term economic 
and corporate outlook. 


Hong Kong tumbles by 4.1 per cent 


Tokyo 


The Nikkei average lost 
ground in spite of buying by 
overseas investors, as dealers 
adjusted their positions and 
companies took profits ahead 
of the long weekend, writes 
Emiko Terazono in Tokyo. 

The lead index fell 122.71 to 
20.469.45 after a high of 
20,655.67 and a low of 20,440.14, 
a week's gain of 1.7 per cent. 

The Topix index or all first 
section stocks fell 1.29 to 
1,647.24 and the Nikkei 300 lost 
0.48 to 302.69. 

Volume fell to 450m shares 
from 571m. the moderation or 
the market's enthusiasm 
reflecting Monday’s national 
holiday. Losers led gainers by 
561 to 471 with 154 unchanged. 
In Umdon, the ISE/Nikkei 50 
index gained 1.94 to 1,360.72. 

Participants awaited the out- 
come of the branch managers' 
meetings at the Big Four bro- 
kers - Nomura. Daiwa. Nikko 
and Yamaichi - and their 
strategies for the next business 
year starting next month. 

The brokers themselves were 
lower on the spate or down- 
ward earnings revisions for the 
year ending March 31, 
announced on Thursday. 
Sanyo Securities, which said 
that it would post a pre-tax 
loss or YSbn, fell Y4 to Y675. 

Nomura Securities, which 
also revised down its earning 
projection due to lower-than- 
expectcd equity commissions, 
lost YI0 to Y2.380. 

Steel companies, which have 


been higher on active foreign 
buying recently, met profit- 
taking by corporations. Nippon 
Steel lost Y6 to Y354 and 
Kawasaki Steel declined Y3 to 
Y375. 

In contrast, speculative 
issues were higher on buying 
by individuals. Honshu Paper 
shot up Y55 to Y825 and Nip- 
pon Carbon rose Y37 to Y486. 

Foreign investors sought 
shipbuilders, with Ishikawaji- 
ma-Harima Heavy Industries 
up Y8 to Y468 and Kawasaki 
Heavy Industries rising Y16 to 
Y419. 

In Osaka, the OSE average 
rose OSS to 22,546.04 in volume 
of 110.2m shares. 

Roundup 

A sharp fall in Hong Kong 
depressed much of the remain- 
der of the region. 

HONG KONG tumbled 4.1 
per cent as institutions contin- 
ued to sell blue chips and small 
investors joined in, taking the 
week's fall to 7.8 per cent 

The Hang Seng index fell 
380.82 to 9,132.31, having pulled 
up from a day’s low of 8,996. 

One London analyst 
described the week's decline as 
the continued ■‘flip-side” to the 
euphoria which saw the mar- 
ket surge during November 
and December last year, as 
reality continues to return to 
the market 

Many UK funds had man- 
aged to make their exit near 
the top of the market but US 
investors were still selling as 
worries grew over the outlook 


for the Chinese economy. The 
analyst added that many inves- 
tors were awaiting more realis- 
tic valuations as a trigger to 
start buying in the region 
again and that at current lower 
levels, Hong Kong was begin- 
ning to look more attractive. 

All sectors have been hit by 
the bear-run with finance and 
property among the heaviest 
losers. HSBC Holdings slid 
HK$4 to HK $92.50, while its 
Hang Seng Bank unit fell HK$3 
to HK$5SL50. Cheung Kong lost 
HK$2.50 to HK$37.50 and its 
associate, Hutchison Wham- 
poa, lost 75 cents to HK230.25. 

SINGAPORE encountered 
widespread foreign and local 
selling, sparked by the fall in 
Hong Kong, but a little bar- 
gain-hunting helped the mar- 
ket recoup some losses at the 
close. The Straits Times Indus- 
trials index fell 49.63 or 2.3 per 
cent to 2,1041)2, for a 3.9 per 
cent fall over the week. 

TAIWAN sustained a 23 per 
cent fall in the weighted index 
as pressure told on the finan- 
cial sector in particular. The 
index fell 12SJ25 to 5,274.61. a 
decline across the week of l 
per cent, with turnover at 
T$45.6bn. up from Thursday’s 
T$39bn, but still moderate. 

The financial sector dipped 
25 per cent with Chinatrust 
the day's most active issue, 
felling T$1 .50 to T$63. 

SEOUL closed easier in mod- 
erate trading after brief gains 
were wiped out by late selling 
pressure, brokers said. 

The suspension of trading in 
Namhan Paper, after the com- 


pany sought court protection 
from creditors, dampened sen- 
timent and the composite 
index fell 5.49 to 893.07, for a 
1.2 per cent fell on the week. 

KUALA LUMPUR ended 
weaker but off the day’s lows 
as a spate of bargain-hunting 
boosted prices late in the day. 

The composite index finished 
20.14 lower at 1,007.60, for a 3.7 
per cent fell on the week. 

MANILA also felt the shock 
waves from Hong Kong and 
the composite index lost 55.33 
to 2,65758. but remained up 4 
per cent on the week. 

Philippine Long Distance 
Telephone weighed on senti- 
ment following an overnight 
fell in New York, closing off 25 
pesos at 1£75 pesos. 

Turnover rose to l.23bn 
pesos with some &3bn shares 
changing hands. 

AUSTRALIA was only 
slightly affected by events else- 
where, the All Ordinaries 
index shedding just 0.9 to 
2.16SL5, barely changed on the 
week. 

Turnover was AS4413m. 

Lend Lease gained 2 cents to 
AS17.92 after announcing that 
it was to develop a joint ven- 
ture with Indonesia's second 
largest company and Its sub- 
sidiary, Bank International 
Indonesia. 

BANGKOK came off 1.6 per 
cent with pressure seen in blue 
chips overall, although there 
was some bargain-hunting evi- 
dent in several sectors. The 
SET index fell 1980 to 1,246.84, 
off 5.5 per cent on the week. 
Turnover was thin at Bt4bn. 


WE?A r CTilARiES WORLD INDICES 


Jo truly eonipUfd by The 
NATIONAL AND 
REGIONAL. MARKETS 
r'Kjun'a n < pjrenttwjSM 

show numoer ol Hnw 
ol siocA 


Bn.ir«tal TTmoa Lid.. Goldman. Sachs S Ca and Natwest Securities Lid. In conpjnction with lire Institute of Actuaries end the. Faculty ct Actuates 


THURSDAY MARCH 17 1094 


US 

Do*ar 

(nde* 


Day's 

Change 

% 


Potnd 

Sterling 

Indesi 


Load Grans 


US 


WEDNESDAY MARCH IS 1994 
Pound I 


- DOLLAR IM 3 EX- 

Ye 


Yen 

index 


Auctf.eu lf 4 J) 



(431 

Cnn.idl itO>) 

CVnm.vML.1 

Finlifld J?T? 

France . 

C-mutu li9t ..... . 

Muj* 4 KiOg (5tfl 

ImLwrI 041 

fcdv 

J.ipnn (4531 

Maijyvtt (fiSi 
Mo«co(1P) . 
Ffciiimljnd (Ml 
Huw JtMlinri t14l . - 

NOAv.ly | 33 i 

Srt»|.*LW; (46' 

fioum Ainc.*. itoi 

NVi-t (431 

tJOl . 

.'■•w.t.ffl.e*! (401 • • 

Unthsl KmgAtro (3*61 

UbrttVH) 

CUOOPt (7461 
M-rvtir (III) — 

P.lur*. Bono 1 7731 .. 
Fmr- P.TCtfic (I4t571 .... 
North Amcrnct (i> 35 ft . 
fcurapa Ex. Uh (W 0 ) 
PjC-IIo E*. J.ajJfi 


174.60 

... 132.82 

171.69 

137.60 

37007 

150.16 

181.44 

138.38 

388.55 

192. 

.. ..7030 

156.31 

.. 461.86 
. . 20»M f t 
. ... 204.00 

71.70 

70193 

.. ..31SJ9 

.266.00 

... 148.SH 

. 2?1 48 

H>4 39 

....200.12 

. .101.60 

...'-TCffl 
_ . S3 

ifJ « 

167 79 

198.24 

16035 
251 11 


-0.5 

172.95 

0.8 

19099 

a? 

166.98 

0.1 

13023 

-ai 

267.38 

0.8 

148.67 

0.7 

179.63 

OG 

137.01 

1 -6 

38448 

0.6 

190.62 

1.3 

77.52 

-0.2 

154 .65 

-1.8 

477.07 

0.9 

2044.17 

o.r 

201.97 

1.7 

70.98 

0.4 

202 89 

-1.1 

312.16 

-0.5 

283.35 

0.3 

147.10 

ao 

219 28 

04 

162.66 

0.7 

198.13 

0.3 

189.89 


116.72 

128.89 

114.71 
91.93 

180.44 

100.33 

12122 

92.46 

259.60 

128.04 

52.32 

10436 

331.94 

1379.48 

136-29 

47.90 

136.92 

210.65 

177.71 
99.27 

147.98 

109.77 

133.70 

128.01 


DM 

Index 

Currency 

Index 

% chg 
on day 

a*. 

Yield 

Dolor 

Index 

Starting 

Index 

Yen 

Meat 

DM Currency 1983/34 
bvtet Index High 

1993/94 

Low 

ago 

iappnaO 


183.07 

- 0.4 

3.32 

175.64 

174.54 

117.41 

164.41 

163 SB 

18516 

13519 

139.71 


16324 

- 0.1 

09 ? 

191.76 

19058 

12820 

1 B 55 B 

16540 

195.41 

139.63 

145.74 

149.96 

14054 

0.1 

3.82 

17544 

169-38 

11594 

14964 

146.33 

171.69 

141.92 

145.52 



0.6 

247 

137.52 

13568 

91.93 

12580 

13556 

14531 

121.46 

122.78 

235.88 

241.79 

- 0-5 

097 

27034 

26585 

18571 

237.86 

242.88 

275.79 

19566 

199.13 


17087 

OS 

584 

14590 

147.97 

9554 

13590 

172.03 

15572 

7233 

7203 


162-94 

52 

562 

180.26 

179.13 

12550 

15547 

162^4 

18537 

14580 

154 .B 5 


120.88 

-51 

1.71 

137 £2 

136.76 

91^9 

1259 S 

12058 

142.38 

107-50 

11103 


385.43 

-«L 2 

2.76 

397 .SO 

395.03 

26572 

349.46 

384 J 24 

50556 

237.88 

23708 


188.07 

50 

517 

191.36 

19517 

12732 

16823 

18507 

20933 

141.83 

141.63 


97 D 5 

57 

1.74 

77 S 9 

78.61 

5137 

8735 

9538 

7593 

55-21 

Sfl .93 


104.36 

-53 

578 

156.60 

155.63 

104.08 

13737 

104.68 

16591 

11588 

11586 


504.19 

- 2.1 

1.51 

49547 

487.41 

32736 

431.18 

515.03 

621 JJ 3 

276.49 

279.14 

1803 D 8 

7449-70 

59 

588 

204789 

2035.10 

136593 

180530 

7382.18 

2647^)8 

1431.17 

1647.20 


175.75 

51 

3.12 

202^5 

201.38 

135.40 

17515 

175.87 

207.43 

16300 

163.74 


6529 

2.1 

561 

7548 

7004 

47.12 

61.96 

64-94 

77.59 

45 - 4 $ 

4582 


202.72 

-01 

1.82 

204.18 

20 ZM 

138.47 

179.46 

202 J 6 

20542 

14577 

14577 

275 D 9 

229^2 

- 1 J 

1.70 

318.73 

31575 

21506 

280^1 

232.85 

37592 

21700 

21547 


264.82 

-57 

2.32 

26 TJJ 5 

28558 

17565 

234 JM 

26566 

28026 

181.89 

163-23 


155 JS 

-52 

172 

14512 

147.19 

9501 

13521 

155.66 

1 K .79 

11533 

124.18 


2 S &28 

-56 

146 

221.56 

22519 

148.12 

194.79 

257.74 

230.02 

1 S 4.79 

180.74 


146.54 

02 

1.55 

163.45 

162.43 

10928 

143 S 9 

14031 

17856 

112^7 

11227 


19513 

53 

3^9 

19572 

197 j 47 

13563 

174.70 

1 B 7.47 

214.96 

16846 

16938 

187.34 

19180 

OS 

2.78 

191-03 

189.84 

127,70 

1 B 7 M 

191.03 

19504 

17591 

183.00 


World Ea. Uft H 6521 

WortlfU UhtWSSI 173 19 

W«id C>. So Ai pillM 17602 

WnM E*. J.itvm Q 7Q1| ■■ 197 80 


06 

17537 

0.1 

21239 

-a* 

163.35 

ao 

168.12 

0.3 

188-37 

0.6 

151.82 

- 1.4 

24561 

0.0 

167.42 

0.1 

171.48 

0.1 

173-20 

0.3 

185.93 


114.97 
143.33 
11023 
112.10 
125 77 

102.46 
167.77 

112.98 
115 71 
11893 

125.47 


Thu World latim (.' 1 70) .175 66 


173 91 11729 



18118 

02 

2.80 

170 ® 

18592 

114 ® 

150 ® 

162 ® 

17558 

13588 

13568 


216.62 

- 0.4 

1.28 

214.31 

2124)7 

143 ® 

188.40 

217.60 

220.60 

14585 

149.38 



-as 

1.06 

165.70 

164 ® 

11578 

145.87 

11524 

18580 

121.86 

121.66 


13571 

-02 

1.80 

167.75 

168.70 

112.13 

147.47 

133 ® 

17578 

128 ® 

12558 


187.76 

02 

2.74 

187.71 

18554 

12547 

18501 

187.19 

192.73 

173.70 

179.27 



ai 

028 

152^44 

151.49 

101.90 

134.01 

141 ® 

18573 

120.02 

12502 



- 1.4 

2.65 

254.67 

253.09 

17524 

22589 

233.67 

23521 

16577 

16577 


13596 

- 0.2 

1.81 

169 06 

1884)1 

113.01 

148 ® 

137 ® 

17551 

12582 

1 &JB 2 


149.75 

ao 

1.99 

173.08 

1724)0 

11570 

152.18 

149 J 1 

17558 

14445 

144.45 


153.18 

ao 

2.15 

174.79 

173.70 

11584 

153 J 68 

183.17 

17558 

14563 

146.63 

164.03 

183 X 12 

at 

2.73 

18757 

)8510 

125.19 

184 ® 

182.80 

19520 

163432 

16182 


184.05 

04 ) 

2.18 

17534 

1744 S 5 

JIT -21 

154.14 

154 ® 

17597 

14563 

14583 


Industrials were in retreat 
after their strong recent gains. 
Montedison fell L45 or 3.3 per 
cent to LI ,224, Olivetti was L80 
or 3.1 per cent lower at L&525 
and Fiat was down L75 to 
L5.034. 

BCI was L94 or 1.6 per cent 
lower at L5.804 as small inves- 
tors who picked up privatisa- 
tion stock at L5.400 continued 
to ini»» profits. 

STOCKHOLM subsided, 
although the fell of 18.0, or 1.2 
per cent to 1,500 in the Affilrs- 
v&rlden General index left it a 
mere fraction lower on the 
week. 

Banks and forestry both had 
a bad day. The interest rate- 
sensitive SE Banken reacted to 
weakness in bonds with the A 
down SKrl.50 at SKr59; and 
SCA’s proposed SKrlbn inter- 
national equity issue left the B 
SKr3 lower at SKrI34 although 
the offer will only fund part of 
a French transport packaging 
acquisition. 

Written and edited by WlUlam 
Cochrane, John Pitt and Mkhae! 
Morgan 

SOUTH AFRICA 

Gold shares were resilient, 
although dealers were unable 
to find any fresh news to stim- 
ulate buying. The gold index 
rose 86 or 4.4 per emit to 2,045, 
industrials 33 to 6,140 and the 
overall 46 to 5,234. Anglos 
added R2 to R222. 


is concerned, is showing 
few signs of life. The chill of 
February’s sharp fells lingers, 
and the principal indices 
remain below their start of 
year levels, in spite of occa- 
sional spurts of activity over 
the past few weeks. 

After Friday’s 1 per cent fell, 
brought on mainly by worries 
of a farther tightening of US 
monetary policy, the CAC40 
index of leading shares closed 
at 2.221.34. some 2 per cent 
below its level at the beginning 
of January, and well adrift of 
the year’s high of 2^J55.93 set at 
the start of February. The 
SBF120 index, a broader indica- 
tor launched last December 
and which Incorporates the 
CAC-40, has followed a similar 
trail. 

For investors and the gov- 
ernment, which is in the midst 
of an ambitious privatisation 
programme, such uncertain 
progress presents a series of 
questions. In particular, can 
the market regain last year's 
energy - in which the CAC-40 
gained 22 per cent - or does it 
face a protracted period of fra- 
gility? 

Most market analysts say 
prospects remain positive, 
although little progress is 
expected in the short term. 
“The market will probably 
move sideways for some 

months anrl we may not have 

tested the lows.” says Mr Did- 
ier Cherpitel, managing direc- 
tor of J.P. Morgan in Paris. 
But he believes the CAC-40 will 
revive and attain a level of 
about 2,600 by the year end. 

The current drift is the 
result of several factors. As 
elsewhere the bourse is suffer- 
ing from the rise in yields in 
international bond markets 
and dampened hopes about the 
pace of interest rate cuts. 

In France, such sentiments 
have been compounded by the 
cautious stance of the newly 
independent Bank of France 
which, anxious to establish its 
anti-inflationary credentials, 
has moved gingerly in cutting 
borrowing costs. The interven- 
tion rate, the floor for money 
market rates, stands at 6.1 per 
cent, just 0.1 percentage points 
below its level at the beginning 


of the year. “Six months ago 
we were forecasting short-term 
rates of 4 per cent by the end 
of the year, but that seems 
rather optimistic now,” said 
one merchant banker. 

A second, equally Important 
factor is to be found In the 
burden of demands on the 
bourse. Issues of shares and 
convertible bonds have totalled 
FFr23.7bn so far this year, as a 
procession of companies from 
Paribas to Peugeot have tapped 
the market. The figure, which 

France 

CAC40 

2.400 - 



compares with FFr50.2bn for 
the whole of last year, is more 
than doubled if one includes 
the privatisation of Elf Aqui- 
taine, the country’s largest 
industrial company. 

“We expected a large number 
of share issues this year,” says 
Mr David Harrington, French 
market analyst at James Capel 
in Paris, “but the volume in 
the first few months has been 
surprising." 

The privatisation programme 
and private capital raising is 
set to continue. Unions des 
Assurances de Paris and AGF, 
a rival insurance group, are 
next to step up to the privatisa- 
tion auction block within the 
next few months. But with the 
sale of Elf out of the way. the 
biggest single share issue ever 
launched on the market, the 
flood of equity is likely to ease. 

“We are not going to see the 
level of issues sustained 
through the rest of the year,” 
says one analyst “The govern- 
ment is well on its way to its 
target of privatisation receipts 
and Is likely to call a halt after 
UAP and AGF ” 


If that provides one reason to 
predict the emergence of a 
more buoyant market, a sec- 
ond is given by the revival or 
the economy and a shift of 
investor's focus to earnings 
performance. “We are in a 
transition period at the 
moment," says Mr Harrington. 
“The markets have been driven 
essentially by interest rates 
over the past 18 months, but 
now attention is shifting to 
growth and earnings.” 

With respect to growth, most 
forecasts are heading upwards. 
Insee, the national statistics 
office, last week raised its fore- 
cast for first half GDP growth 
from 0.5 per cent to 0.7 per 
cent. Many private sector econ- 
omists have upgraded annual 
growth forecasts from below 1 
per cent to nearer the govern- 
ment's estimate of 1.4 per cent 
Although most economists 
believe the official target is 
optimistic, they point to 
encouraging signs in economic 
activity, particularly in the 
consumer sector. 

The brighter macroeconomic 
picture is dispersing some or 
the shadows at the corporate 
leveL A string of companies, 
ranging from Lafarge Cop pee, 
the building materials group, 
to LVMH, the luxury goods 
company and Carrefour. the 
food retailer, have announced 
Improved profits and prospects 
over the past few weeks. 


T 


hose companies with 
strong overseas sales or 
exposure to the con- 
sumer sector are painting the 
most optimistic scenarios. Mr 
Bernard Arnault, LVMH chair- 
man, last week forecast profits 
growth in excess of 20 per cent 
this year. The shares jumped 
correspondingly, gaining just 
under 5 per cent 
In many cases, however, 
there remains a strong sense of 
caution. “Our optimism is very 
relative,” says Mr R6n6-Yves 
Nanot, chairman of Ciments 
Franpais, announcing halved 
losses for 1993 of FFr685m last 
week. “Things are clearly bet- 
ter,” says the finance director 
of one ma n ufa cturing group, 
“but I do not think we will see 
a powerful rebound just yet." 
Neither it seems, will the Paris 
bourse. 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


RISES AND FALLS YESTERDAY 

On Friday 


' On the week - 


Opttta 


- — CMs Ms 

Apr M Oct Apr Oct 


flprtnn 


— CMs Puts 

Hay Aug No* May Aug Nov 


MMhMna 600 28 41 4SH lOh 29 36 

(-615 ) 650 6 18 a 41 G0M 66 

Aiqjti 240 2114 29* 321* 4 14 IBM 

[-250 ) 260 m um 22» 12J» 25 29 

ASDA SO 9» 1ZM 13M 1 3 4H 

(•56] 6038N7HS79 


Brit Affrays 420 IBM 32 4DM 10ft 


r«a » 
feflBcMA 

r«3> 

B00B 

rs») 

BP 

(-387 ) 
BAMS* 
("146 I 
Boss 

raza 1 


4 1 SH 23 W 37 H 


460 

390 29 38 48 BN 21 M 29 H 
420 SK 24 K 34 H 2 S 37 M 45 M 
500 m S 3 61 3 h 15 2051 
550 Btt 23 H MW ZSh 39 N MW 

360 17 V* 28 35 BH 15 22 
390 4 M 14 Zl 26 » 33 H 38 N 
140 10 W 1 CH 2 BH 4 9 12 » 

160 2 Th 11 H 16 21 24 * 

500 3 ZH 47 5 BM 8 18 2554 
550 7 23 35 32 47 NS 2 H 


280 12 T 7 N 2216 9 14 18 

300 4 9 K 14 21 K 26 30 

120 16 % 22 2814 BM 11 » 15 » 
130 1014 17 22 111 * 16*4 21 
no 33 ■ 34 4 K M 19 

220 9)4 18 23 V 4 13 1814 35 

650 43 63 75 16 3114 4714 

700 1714 » SI 44 59 K 77 

100 « 26143014 4 9 1114 

200 8 16 1914 1214 1014 21 


mi i 
Lasno 
H29| 
Licas tads 
1*218) 

P & 0 
1*678 | 


1*195 | 
RudMU 
1*329 ) 
RTZ 

pwi 1 


300 

330 


425 25 43 
450 13 29 
550 25 3914 
600 544 M 
GmalHoa 550 3 BV 458 U 
1*588 ) 600 9 2714 


MkiUt 
(*440 ) 
CourtmMs 
(*559 I 


K 2 

praei 

HngBNnr 
(*589 1 


750 4914 7114 
800 17 42H 
550 48 59 
BOO 17 3114 


- 1 22 - 
- 21 3414 - 

SI 12)4 33 4114 
29 4514 6414 71 
61 4M 14 22 
34 27 37 4714 

81 8 22h 3(14 

S3 2BK 45H 5814 
66 5 21 26 

43 25 4554 M 


rS74» 
told is 

(*275 ) 

I coco 
C218 ) 


(■550) 


19 

8SD44MBBH 
900 1914 44% 
550 34 40)4 
BOO 914 24 
260 24)4 34 
290 13 2314 
200 23 2714 
220 9 16)4 

500 6014 7514 
550 28 
380 35 


41 4» 9 1414 

S 1814 24 a 
84 ah 4114 56H 
60 5414 68 B3 
58Z0M 29434 
SB 54 SOM 7114 
40 a 13 10 

a ia a 29)4 

32 3 9 13 

22 14 1814 a 
89 7 IBM 2714 

47 DIM 25M 38M 50M 
40 48 8 12 17H 



Rises 

Fatal 

Some 

Rises 

Fatal 

Same 

British Finds 

1 

68 

4 

135 

198 

37 

Other fixed Interest 

0 

2 

13 

10 

20 

45 

Mineral Extraction 

83 

44 

78 

380 

291 

374 

General Manufactures 

76 

233 

371 

718 

737 

1.948 

Gonaunar Goods 

27 

68 

97 

194 

229 

541 

Services 

71 

156 

282 

481 

544 

1.570 

Unities 

4 

34 

B 

88 

97 

46 

rtnendM 

88 

138 

167 

521 

527 

907 

Investment Trusts 

12 

229 

219 

477 

432 

1,391 

Others 

58 

44 

32 

288 

204 

183 

Totals 

420 

,015 

1281 

3^72 

3*79 

7 .Q 21 

Dtt bsaad an toaaa LuiyjauMa (toad an dM London 6 nn Sam 

TRADITIONAL OPTIONS 

Bret DeaSngs March 7 last Declarations 


June 18 

last Dealings 

March 18 

For satttement 



JUaie 27 


Cate: Allbmca Rh, Onymt, KuSch, Lloyds Cham. Rartco, Regent Cop, Waflrar 
4 LDJ- FHits: Aminax.Qraycoai Puts & Cads: Fovnrd Tech, Lloyds Chens, MtcrovHec, 
Shandwfck. 

LONDON RECENT ISSUES: EQUITIES 

Issue Amt UkL Close 

price petd cap loscmt price Nor Div. Gra P/E 

p up (OnJ Ugh Low Stock p tV- dw. co*. yld net 


(*389 ) 
Olttxi 


BAA 

nan) 

Thanes Mr 
(*529 ) 

Option 


Land Secur 830 BOM S9 

(*693 ) 700 13 2B 

Merits AS 390 3114 36 

(*417 I 420 1114 2014 

NsMed 4G0 32 4914 6414 7 

(*483 1 500 914 28 35 2B» 


63 314 
34 18 
46 2 M 
28 1214 


Safuboy 
{*388 I 


360 

390 


33 41M 49 4 

13 23M 31M 1414 


15 IBM 
39 43 K 
11 13 
24 26 

16 2414 
35 45 

16 2014 
30 34 M 


6 ISM 25 
700 6 V 1 MM 3114 32 M 41 51 
220 SH 1614 22 714 17 M 18 
240 ZM 8 13 H 22 H 20 M 3014 


SMB Tons. 650 32)4 S 9 M S 8 M 
("673 ) 

Suntxxas 

mo i 


Abbey NOB 
P484 I 
Am strad 
na i 
Bflitiqn 

rssi ) 

Eftis Ode 
(*349 ) 
mbh 6 k 

raw ) 

Doans 
(*211 t 


Tfrttg* 106 7 V 5 13 - 6 11 H - 

(* 106 ) 115 4 9 - 12 H 17 H - 

UnBswer 1050 22 4 BM 64 M SOM 43 50 

(- 1057 ) 1100 5 M 27 M 41 71 75 B 5 H 

Zeneca 750 ZM SIM 6414 18 M 36 4914 

(*753 ) 800 7 29 42 M S 3 64)4 78 

Option Uif Ang Ho* Hsy Aug Hair 

Grad Met 460 24 M 3 SM 48 1354 24 29 
(■468 ) 500 8 a 30 38 47 52 

Ladnks 200 ISM *4 30 7 M 13 19 

(-207 ) 220 6 14 M 21 19 24 3014 

Utd Knits 330 2254 31 h 3814 954 16 23 

£348 > 380 7 18 2614 29 M 34 3914 


Option 


Mbr Jne Sep Mar Jun Sep 


H32 1 
Option 


130 4 K 14 2154 3 

140 1M SM 18 1014 


Bq r Ang tar May Aug Ho* 


BH1 Aero 

(-503 ) 
BAI tats 
(*471 ) 


500 4054 9 75)4 
550 23)4 37)4 54 M 
460 23 32 W 44 
500 6 16 W 


29 48 9 
86 76 88 M 
17 27 34 M 
24 47 M 53 M 6014 


rm> 

Untie 

ris3> 

Ktil Power 
(*<70 1 
Scot Pomr 
(* 3 » ) 
Sen 
pi») 

forts 

(*258) 

Cannae 

no / 1 

Thera EM 
(11201 
TSB 
f*32) 

ToflArtS 

Pisa) 

Wdfcome 

peas l 

Option 


390 

14 23 301* 

19 25M 32 

_ 

FJ>. 

306 

248 

243 Abbuat N Dawn C 

243 

-3 

- 

- 

- 

- 


Apr Jol Oct 

Apr Jld Od 

135 

FP. 

42.1 

142 

135 A«]<tod DWtirs 

139 

-1 

WN3.G 

24 

34 

16.4 




- 

FP. 

099 

6b 

1 flCara UK WMs 

4>2 

-1 

- 

- 

- 

. - 

1000 

n w <0 a« 

105 

FP. 

32-5 

11B 

101 Odnrdaln 

106 


m\s\ 

2-9 

23 

17-4 

1090 

11 32 52 53M 75 82K 


FP. 

988 EB7h f37b Cheater Water 

£87l 2 


f235.D 

43 

3.4 

ao 

500 

ad aim 

law u 

_ 

FP. 

309 

125 

125 County Smlr C 

125 


- 

_ 

- 


550 

7 17 zm 47» 51 

50 

FP. 

1288 

X 

48 Edn Mew TJgar 

40 

-2 

- 

- 

- 

- 


■ar Jvi Sap Mar Jrn Sep 

- 

PP. 

122 

X 

49 F 0 C Private Eq 

49 


- 

- 

- 

- 




IX 

FP. 

139.5 

89 

X FMeflty Jpn VUues 

« 

-2 

- 

- 

- 

- 

460 

73 40M 52)* 

1 11 19 

_ 

FP. 

105 

55 

48 Do Warrants 

55 


- 

- 

- 

. 

500 

2 18 31 

19 30 38 

IX 

FP. 

325 

IX 

IX Finds! 

149 

+4 

RX3 

23 

20 

1 93 

35 

4V* BM 6M 

13 4 

- 

F.P. 

2.54 

IX 

96 Flaming Japan C 

101b ’ 

-1* 

re 

- 

- 

- 

40 

14 8 

3W 5W 7 

- 

FP. 2.5914) C31 1 ? CH*. Ftankfln Res 

G31>2 


Q 28 e 

- 

00 

- 

550 

BM 32 47M 

7 26 39 

- 

FP. 

51j0 

102 

IX Gartmare Brit Inc 

m 


- 

- 

- 

- 

600 

1 13M27M51M 5a 69 

- 

F.P. 

502 

113 

112 Do Zero PI 

112b 


- 

- 

- 

- 

330 22H 29H 40)4 

1» 13 Z1 

- 

F.P. 

1005 

213 

006 Do Units 

213 


- 

- 

- 

- 

360 

2M 14M 26 13M 2SM 37 

170 

FP. 

74.1 

171 

159 Gddsbarousti HHi 

IX 


WM13 

2.6 

24 

185 

300 

6 15M 20 

3 15M 20M 

IX 

FP. 

24 7£ 

216 

IK Graham Grre^ 

216 

-1 

LN4 A 

2 3 

27 

205 

3M) 

1 4 BVj 

28 37 39M 

- 

FP. 

66.0 

74 

664* Quangdong Dript 

73U 


- 

- 

- 

- 

70(1 22K 71V, 

IK 0H 1b 

- 

FP. 

556 

30*2 

18*j Do Wararts 

Si 2 

♦»4 

- 

- 

- 

- 

220 

2 12M 18 

12 IBM 27 

81 

FP. 

1149 

62 

57 Israel Find 

57 b 


— 

- 

- 

- 




- 

FP. 

11J) 

28*2 

Z7*4 Do Warrants 

27b 

->4 

- 

- 

- 

- 

ISO 14h I7M21M 

1 7M 10)4 

- 

FP. 

529.0 

495 

459 Mercury Euro Rrvtn 

460 

*1 

- 

- 

- 

- 

ISO 

2 BM 19 

10 20M 22M 

140 

FP. 

234/4 

172 

IX MUand Indp Mwa 

170 

-2 

WNZfi 

23 

21 

223 

140 14H 23 2BT4 

1 7M 13M 

50 

FP. 

20A 

53 

49 Mttns tnv Tst 

51 


- 

- 

- 

- 

180 

2 12M 19)4 

0 17M 24 

- 

FP. 

2j08 

28 

25 Oo Wananta 

26 


- 

- 

- 

- 




_ 

FP. 

601 

228 

223 Partco 

224 


1535 

23 

3.0 

102 

460 

14 3D 39M 

3 23M 28M 

- 

F.P. 

024 

200 

196 PtBTrtgai Inti C 

199 


a 

- 

- 

- 

500 

1 13 22M 

32 48M 51 

125 

FP. 

101 

IX 

113 Radatone Tech 

118 


RIO 

24 

22 

145 

360 28)4 38M 48 

I 7M 15 

IX 

FP. 

5TJ0 

96 

94 Saracen value 

95 


- 

- 

- 

- 

390 

5 20 29 

8 1814 29 

- 

FP. 

*M 

43 

38 Oo tVfenanfs 

36 


- 

- 

- 

- 

110 

11 13 IBM 

1 3M 5M 

- 

FP. 

1102 

508 

491 Schroder UK Gvrtti 

496 

-6 

- 

- 

- 

- 

170 

2M 6» 9M 

274 7M 10M 

118 

F.P. 

54. B 

140 

12S Trtng tea 

129 


PN33 

21 

3.7 

123 

940 Zttt 25M 32 

1 SVr 13M 

153 

F.P. 

53.5 

IX 

153 United Cantera 

168 


- 

- 

- 

- 

200 

4M 13H 21 W 

5 18 23» 

» 

FP. 

11.3 

72 

68 Waste Recydkig 

70 

-1 

1W 

OA20A 

226 


193 6M IBM 
200 3 13 

1100 27 87 

1150 3M 43 


- 2M 12» - 
22 B 16 22 M 
90 5 32 80)4 
64 36 54 88 H 


t bitroaialon. 9 Ptaano pnee. FP. Rdppdd secuSy. for an «n4anick*i of other norm, phase lefcr 
so ttw QuKto to KM London snare Santee. 


220 

240 

240 

280 


23 29V, 1 7 1314 

12 19 9M 1614 24 
23 28K H4 8 14 
12 18 1014 18 25 


RIGHTS OFFERS 

Issue Amount Latest 
price pakl Ranun. 
p up dote 


1998794 
High Low 


Ctosng 

price 

P 


500 31 ) 464)4 77 4 28 42 
550 314 31 S 3 29 5614 6 B 
Apr Jd Dei Apr Jd Oct 


BID 380 32 4214 

(*383 } 390 13 24)4 

Bril Tricon 390 38 SB 

C 411 ) 4 » um am* 

cadburrsa 4 ® 22 - 


(•499) 


642 4 - 


48 6 M liter 18 
31 17 H 25 32 
43 4 1314 18 

27 17 29 33 H 

- 13M - - 

- 47 - - 


rrao j 

Guhnes 
C48* ) 
GEC 
HO*) 


600 44 67 64)4 9 25 3254 

650 1914 3014 39 33 M 52 58 M 

480 33)4 4814 54)4 11 M 23 20)4 

500 1254 26 35 33)4 45)4 5154 

300 16 22 29 7 M 16 1914 

330 6 813 MZ 7 M 36 385 ) 


Gbcco 650 4 B 7614 a 11 2814 47 

(684 ) 700 21 49 )» 6314 33 M 5214 72)4 

HSXnptis 750 B 1 HB 514 113 21 49 86 

[-794 | 800 33)4 71 a 44 75 91 

Rautra 2000 8854 141 181 SOM 101 128 

1 * 2009 ) 2050 42 115 154 77 126 152 
Option Bar Aeg In Hay Aug Hw 


92 

M 

11 T 4 

ISpm 

7 pm 

Burfad 

Sbprn 

173 

N * 

ST 4 

27 pm 

14 pm 

jCap. A Regional 

14 pm -3 

41 « 

Nl 

14/4 

6 pm 

3 pm 

Cara UK 

3 bpm 

42 

M 

14/4 

18 pm 

4 pm 

Conrad FMbial 

4 pm 

15 

ta 

25/3 

4 pm 

2 bP«n Crawon Land 

2 bpm 

12 


13/4 

13 pm 

10 pm 

firth (QM) 

iipm 

62 

m 

28/4 

lObpm 

9 pm 

Haden Madeian 

9 pm 

315 

Nl 

30/3 

64 pm 

49 pm 

Wemerapoon JD 

49 pm -1 


Ms-floycs 

n«i 


180 

200 


26 2414 7H 13 17H 
11 « 1014 24b 29 


pm Pnee At a pramkm. 

FINANCIAL TIMES EQUITY INDICES 

Mar 18 Mar 17 Mar 16 Mar 15 Ma 14 Yr ago 


Tflgh *Lbw 


UWtaiytng! 




baaed on dosing otw priaae. 

Mvtn 16- Total OHiDacCL- 33J233 Cob: 15JBO 
Put* 17 J 40 


Ordinary Share 
Ord. <Sv, yWd 
Earn. yld. % fid 
PTE ratio net 
PTE raw nti 


2642.7 

3.65 

4S7 

21.87 

22.85 


26603 

3.62 

452 

22.06 

23.06 


2652.8 

3.64 

4JX> 

21.95 

22.93 


2689J 

3.61 

4.91 

22.11 

2308 


ZS46J2 

3.64 

4.35 

21.95 

22.92 


2288.6 Z713JB 2124.7 

4.34 4J52 3.43 

6.06 038 3.82 

2063 33.43 19.40 

19.05 3080 1014 


FT COLD MINES INDEX 


liter 

% c6g 

liar Hr Tsar 

Gran Ar 

62 Mak 

17 

on day 

16 16 ago 

yMd % 

Mgh Lm 

2X405 

-1.1 

aauz 20(066 118726 

187 

Z3B3JB3 11BTM 

378533 

-03 

260636 279689 13X42 

4.95 

3440X130042 

254034 

-2.4 

2603.26 2652.18 124092 

1.45 

301359 124092 

170027 

-08 

171479 173001 112231 

055 

203955 112261 


ihd 

CanttraiMt etionpe *U*« »*t«t 




GoUMwtadnfH 
■ MgMMfcB 

Mriea(tS) 

Ausfratett (8) 

Non America (11) 

CowroM. The RmU Time Limited 1994. 

Fnana in tncSraa nw imoAw at «mpr*W OwM U® Doiam. Base VUmne 100090 3 V 12 ltd. 
predecessor Odd Mnaa Index: Ma, 1 ft 223 JI : day's ctioipc *{L 9 point* Yew agR 1012 1 Partial 
Latest prieaa wwe urmaMtia ler tMg edUon. 


Tor 1993AM Qrfnfcy $hAr» nM, *ea eenyHaB w high 271 1£ 20204; toe 4<U 26KMO 
FT OnJrary Sham Mu ba» data 1/7T3&. 

Ortflnary Sham hourly changes 
Open 9UOO 1000 11 DO 12D0 


13D0 14D0 15jOO 16.00 Mgh Low 


2567.8 2S60D 2556.9 2S50D 26454 25364 2532.1 2633.8 2540.1 26606 2529.1 
Mar 18 Mar 17 Mar 16 Mgr 15 Mar 14 Yr ago 


SEAQ bargains 
Equity turnover (Emit 
Eqiity fcsrgairrst 
Shares traded (mi)T 


33,758 


34.034 

14234 

38480 

573.7 


30378 

1458.1 

34404 

5914 


33.817 

14064 

38.574 

535-7 


34.173 37.797 

12400 14507 

38.169 39,438 

487.9 6324 


/ 


t ExducSnp Wra^nartcet busrinces end nana n turmw. 




FINANCIAL TIMES WEEKEND MARCH MVMARCH 20 !W 


LONDON SHARE SERVICE 


— _ 73 

1U 200 87 

IS -2 IK 85 

115 128 V 70 

« ♦'* 78 36*i 

95 MS 85 

43 48 35 

SM *454 ISO 

174 _ 191 88 

39 41 

38 __ 115 

177 — *177 

82 t2 1U 

4f S3 



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McCWirSS. 


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K 

44 

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17 

194 

16 

103 

44 

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17 

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111 

54 

* 

44 

193 

10 

254 

84 

— 

84 

- 

14 

2B2 

a* 

804 

14 


16 

5.4 

13 

- 

93 

- 

5.4 

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0* 

— 

3J 

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17 

♦ 

4.7 

123 

03 

- 

05 

160 

07 

277 

42 

117 

48 

113 

44 

41 

11 

196 

06 

546 

04 

— 

24 

11.4 

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4.1 

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0.7 

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624 

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14.9 

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14.1 

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1.7 

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299 

25 

14.4 

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15.3 

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172 

14 

176 

20 

255 

4.0 

10.4 

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184 

20 

285 

43 

110 

11 

143 

15 

214 

4.1 

18.7 


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a ?i us i.i 

78 llV 1K4 - 

45 S 1.12 - - 

*139 76 4383 1.1 28.1 

S 17 384 M 289 

SX 533 24 SS 1.8 226 


1993/94 MM 
Uoh in* OvBn 

ECU £ 28 V 7 GU 

-If. £800 S 475 * isn 

*4 288 210 7284 

7*5 345 291 

Hinzsa E 83 V 7322 
-5 770 S90 3435 

-9 *373 199 4207 

298 215 6*48 

34 21 287 

199 128 «UJ 

IDS 88 21.1 

48 a 037 

808 421 2351 

384 228 497.4 

140 103 13.7 


llV 3>1 432 

40 13 IS 

50 17 040 

241 ISO SOU 

ft rag tats ij i/m 

229 157 1706 

815 SB 5JB82 

187*. 73 236J0 

54* 578 1,327 

97*2 S 1U 

409 2*0 131-2 

127 85 884 

164 112 283 

1324 £18 M14 

96 83 160 

333 173 914 

480 412 7103 

888 395 407 

*483 330 2047 

*312 233 2884 


193384 KM 
Ngp low Catfrn 

125 58 334 

383 223 409 

433 798 144 

S 37 099 

31 14 108 

*175 78 904 

6 2 V tOt 

578 3 S 3 1414 

25 V 74 741 

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405 ZH 174 

4 D 23 1 J 4 

23 15 109 

333 204 MU 

21 12 041 

99 45 2 IJ 

73 36 154 

58 19*7 474 

485 303 105 

59 31 504 

143 98 159 

135 96 298 

43 18 154 

348 156 4801 

72 \ 4 743 

295 88 307 

*157 102 V 248 

580 205 25.1 

828 391 3174 

233 105 204 

589 358 1497 

T 7 B 43 394 

292 175 Z 0 E 4 

40*2 18 174 

173 92 554 

552 305 1184 

485 378 403 

858 340 7844 

78 a 748 

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44*2 16 060 

99 38 7.15 

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384 85 1317 

110 29 548 

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191 87 UB 

138 90 524 

837 475 2318 

84 11 204 

48 15 444 

115 as 074 

184 97 2808 

573 281 8066 

278 181 684 

276 55 808 

117 90 102 

2 BV 21 244 





a 2D 848 

175 123 154 

*218 22*12 1189 

*338 101*3 S 9 J 

237 124 102 

2 W 108 484 

IW 88 058 

7 * 2*2 493 

a 14 224 

a 15 309 

4 i 18*2 l® 

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141 32 1217 

44 12 114 

285 180 (334 

S 18 015 

a a xu 

221 IS 984 

45 S 7 a 

335 223 474 

* 30*2 14 414 

41 * 0 % 299 

48 a 142 

SB a 103 


1983 W Ml 
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388 78*2 5844 

960 414 7902 

48 IB 848 
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828 395 7388 

77 48 1077 

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£3511 ei 7 <a 2411 

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818 442 3504 

778 489 2994 

91 S 542 
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DZV £ 42 >! 15453 
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808 465 2 SU 

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SB 44 422 

300 70 S 164 

S 3 202 484 

281 175*2 1894 
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DIO £226 15,185 
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84113 £ 211*18917 
94 37 845 

MB 58 874 
£ 271 , n 8 5077 
354 165 574 

27 4 V 1.12 
£ 29 S £ 171 * 3408 
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51 O'* 312 iwa 

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72 V 17 488 

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M 3 JS £ 251 * 8084 
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jn 220 831 
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Carrying the 
nation's goods 


For information cnll 0362 695353 


FINANCIAL TIMES 

Weekend March 19/March 20 1994 


builder 

CENTER 





US-German 
air traffic 
deal heralds 
closer 

airline links 


Bond aimed at banks and building societies 

Bank of England offers 
variable-rate gilt issue 


By Sara Webb 

The Bank of England is 
launching its first UK govern- 
ment bond with a variable rate 
coupon - rather than a fixed 
interest rate - in nearly 30 years. 

The Bank is keen to offer inves- 
tors a wider range of financial 
instruments, and expects the new 
gilt to appeal primarily to banks 
and b uilding societies which buy 
floating rate paper tor short-term 
liquidity purposes. Money market 
funds are also expected to buy 
the paper. 

However, yesterday's 
announcement is seen as particu- 
larly opportunistic, given the 
recent bouts of nervousness in 
the world financial markets. 

The gilt-edged, European gov- 
ernment and US Treasury bond 
markets have all seen sharp falls 
since February 4, when the US 
Federal Reserve hitched up 
short-term Interest rates. The 
markets have been especially 
nervous about US infla tion pros- 
pects and the possibility of fur- 
ther rises In US interest rates, 
and have experienced heavy sell- 
ing by investors, particularly the 
US-baaed hedge funds. 

A few borrowers have 
responded to the uncertainty 
over interest rate movements 
this year by issuing fl oating rate 


notes, either in US dollars or ster- 
ling. Some gilt analysts pointed 
out that the Bank was hoping to 
take advantage of investor uncer- 
tainty about the direction of UK 
interest rates and the fact that 
some existing floating rate issues 
are expected to mature this year, 
creating a shortage of such notes. 

“Some Investors clearly think 
that UK interest rates may have 
bottomed out or be close to then- 
lows , and that a floating rate 
bond would enable them to take 
advantage of a rising interest 
rate scenario,” said one analyst 

The feet that the new gilt issue 
is targeted at banks and building 
societies may also help - indi- 
rectly - to iron out the sharp 
fluctuations in money market 
interest rates. 

Since the Bank changed Its 
binding rule in March 1993, the 
Hawks have bought substantial 
amounts of gilts. However, the 
Rank is keen to encourage them 
to buy more gilts so that they 
build up large holdings of govern- 
ment paper which can be used as 
collateral in certain of the Bank’s 
money market operations - 
known as repos - and which 
could help to smooth out the vol- 
atility in the commercial banks' 
overnight interest rate. 

The last time the Bank issued 
bonds with a variable interest 


rate, the exercise was not deemed 
a success. It sold three issues, of 
£400m each, in 1977 and 1979, 
which matured in 1981, 1982 and 
1983. Investor rfamswH was poor, 
and was not helped by the 
coupon-setting mechanism which 
was seen as too complicated. It 
was set retrospectively, based on 
an average for the UK Treasury 
bill rate over the previous six 
months. 

The new gilt Issue will be sold 
at auction on March 30, and 
itetaiig of the amount, maturity 
and coupon will be announced by 
the Bank on Tuesday. The cou- 
pon is likely to be set using the 
London interbank rate, the com- 
mon method of setting the cou- 
pon on floating rate sterling 
bonds. 

The Rank said earlier in the 
week that its auctions would be 
in the £2bn-£4hn range, but mar- 
ket participants suggested that 
the Bank is likely to err on the 
lower end of the range. 

The gilt market reacted posi- 
tively to yesterday's announce- 
ment, recovering % of a point in 
the afternoon. However, dealers 
said this was partly in relief that 
the Bank was not issuing conven- 
tional bonds against an unfavour- 
able market background. 

See Lex 


Serbia urged 
to join Bosnia 
peace process 

Continued from Page t 


SPD plans tax shift 
to wealthy to pay for 
German unification 


Alila Izetbegovic of Bosnia and 
Franjo Tudjman of Croatia asked 
for help to rebuild their nations. 
Mr Clinton promised that the US 
would contribute and said the US 
stood ready to act, through Mato, 
to help sustain any broader and 
enforceable peace agreement 
involving all three parties. 

But Mr Izetbegovic, considered 
the most reluctant party to the 
agreement, also said he wanted a 
“fair peace.” which would 
include the retention of Bosnia's 
old borders, resettlement of those 
expelled from their homes, and a 
war crimes tribunal. 

Yesterday’s agreement also laid 
out the principles of a confedera- 
tion between the Croat parts of 
Bosnia and Croatia itself. This 
blueprint could be extended to 
allow the Bosnian Serbs a compa- 
rable relationship with Serbia. 

Serb leaders yesterday 
appeared In disarray over the 
Washington agreement, uncer- 
tain whether it heralded a pact 
against the Serbs, or formally 
sanctioned Greater Serbia and 
Croatia. 

Mr Momcilo Krajisnik, speaker 
of the Bosnian Serb assembly, 
called the federation “an unnatu- 
ral creation” that would never 
last, Radio Belgrade reported. 
Other Bosnian Serbian leaders 
saw the agreement as “positive”. 


By Quentin Peel in Bonn 

German tax reforms which would 
shift the burden of spending on 
unification from the low-paid to 
the wealthy were outlined yester- 
day by the opposition Social 
Democrats as the main plank of 
their election campaign. 

The plan is also intended to 
boost demand and promote Job 
creation by cutting taxes for ordi- 
nary wage-earners, and reducing 
their social security contribu- 
tions. 

Mr Rudolf Scharping, the SPD 
leader, says the net effect will be 
no increase in the combined bur- 
den of taxation and insurance 
contributions, and no increase in 
the government’s net borrowing 
requirement 

The proposal was published as 
a draft programme for a future 
SPD government if the party 
wins power in October's ge n eral 
election. 

It was immediately denounced 
by Mr Theo Waigel, the finance 
minister, as “hot air”. Far from 
relieving the burden on ordinary 
wage-earners, it would hit the 
vast majority on average 
incomes, he said. 

The tax reforms amount to a 
calculated risk by the opposition 
leader, who is seeking to present 
his party as a reliable alternative 


government to Chancellor Hel- 
mut Kohl's ruling coalition. They 
are Intended to demonstrate 
greater social justice, maintain 
strict fiscal discipline and boost 
job creation. 

The growth rate of public 
spending would be kept “appre- 
ciably below” the nominal 
growth rate of gross national 
product in order to cut the soar- 
ing public debt, the programme 
states. “Unnecessary” tax allow- 
ances would be abolished. 

At the heart of the package is a 
10 per cent tax surcharge on 
higher-income earners. The 
suggested threshold is an annual 
income of DM50,000 (£19,455) for 
the single taxpayer and 
DM100,000 for married couples. 
The Kohl government has 
decided on a 7.5 per cent income 
tax surcharge to pay for unifica- 
tion to come into effect from 
January 1995. 

The SPD proposal also includes 
an increase in the wealth tax on 
individuals and measures to dose 
tax loopholes for the higher paid. 

In return, an SPD government 
would remove the surcharge on 
unemployment insurance contri- 
butions which finances retrain- 
ing and job creation schemes in 
east Germany. 


A policy with whiskers. Page 8 


By Michael Undemam in Bonn 

Germany and the US signed an 
agreement on air transport yes- 
terday, paving the way for closer 
co-operation between Lufthansa, 
the German national carrier, and 
United Airlines. 

The negotiations, which 
involved Chancellor Helmut 
Kohl and President Bill Clinton, 
will lead to ticket code-sharing 
between the two airlines and 
give their clients reciprocal 
rights to incentive packages, 
such as frequent-flyer pro- 
grammes. 

The deal came after Thursday 
night's separate US decision to 
extend for a year a similar agree- 
ment between British Airways 
and USAir. 

A memorandum of understand- 
ing signed by Mr Matthias Wies- 
mann, the German transport 
minister, and Mr Federico Praia, 
the US transportation secretary, 
also leaves open the possibility 
of other US airlines gaining lim- 
ited access to the code-sharing 
arrangements. 

Mr JQrgen Weber, Lufthansa’s 
chief executive, said the deal, 
allowing the two airlines to mar- 
ket each other’s flights under the 
same ticketing code, would come 
Into effect on May 1. It will last 
four years before leading to a 
broader agreement between the 
two countries. 

The deal gives Lufthansa bet- 
ter access to Caribbean and 
South American routes, while 
United can increase flights to 
eastern Europe and beyond. 
Under the code-sharing provi- 
sions, passengers will be able to 
make connecting flights on both 
sides of the Atlantic with only 
one check-in and benefit from 
better connections between the 
two airlines. 

Lufthansa will also have more 
access to destinations in the US, 
tiie west’s largest aviation mar- 
ket. German officials said the 
deal would correct the imbalance 
between US and German carriers 
that had been created by the 
1955 post-war agreement. Under 
that agreement, US carriers cap- 
tured 76 per cent of traffic 
between the two countries. 

The officials said the talks had 
faced “incredible pressure” from 
other American carriers seeking 
greater access to Germany and 
attempting to block the Unlted- 
Luftfaansa partnership. 

The number of US flights to 
Germany will be frozen for the 
next two years and will increase 
modestly in the following two. 
The code-sharing is expected to 
increase Lufthansa's transatlan- 
tic revenues as the carrier pre- 
pares for privatisation. 

On Thursday the company 
announced lower losses of 
DM50m (£19.4m) for 19S3 on the 
back of significant progress hi 
its restructuring programme. 
That compared with DM297m for 
the previous year. 


Showdown averted. Page 3 


FT WEATHER GUIDE 


Europe today 


An low-pressure area over southern Sweden 
win draw milder air over the Continent. As a 
result, the northern half of France, Germany, 
Poland, the Czech Republic and Slovakia will 
be overcast with rain and strong westerly 
winds. Behind the rain, a strong north-westerly 
flow will push cold and unstable air over 
eastern parts of the British isles and the 
Benelux countries, bringing wintry showers and 
a few sunny Intervals. High pressure over the 
Atlantic wHI bring drier conditions to western 
parts the British Isles. The Mediterranean. Spain 
and Portugal wiD remain dry and sunny. 

Five-day forecast 

As high pressure over the Atlantic moves over 
western Europe on Sunday, wintry showers will 
move towards eastern Europe and the CIS. 

Next week, a strong westerly air current will 
push oceanic disturbances towards western 
Europe, bringing prolonged unsettled and 
milder conditions. Northern Europe will remain 
changeable with wintry showers, while the 
Mediterranean will stay dry and sunny with 
spring- Hke t emperatures. 


TODAY’S TEMPERATURES 


Abu Dhabi 

Accra 

AJgiera 

Amsterdam 

Athens 

a. Aires 

ELftaffl 



Situation at 12 OUT. Tvmperatums maximum tot day. Forecasts by Mefoo Consult of the PJotfwrtancfc 


Barcelona 

Beflhg 


Maximum 

Belfast 

shower 

8 

Canflfl 

fair 

8 

Frankfurt 

rain 

11 

Malta 

fair 

18 

Celsius 

Belgrade 

fair 

20 

Chicago 

ft* 

11 

Geneva 

rain 

12 

Manchester 

shower 

9 

sun 

25 

Berlin 

rain 

6 

Cologne 

rain 

9 

CUbraftar 

sun 

21 

Manta 

cloudy 

fan- 

32 

tab 

30 

Bermuda 

shower 

23 

D - Salaam 

fair 

31 

Glasgow 

ha* 

8 

Melbourne 

20 

sun 

24 

Bogota 

cloudy 

28 

Dale* 

8IS1 

24 

Hamburg 

sleet 

4 

Mexico City 

fair 

24 

hall 

B 

Bombay 

sun 

32 

Dates 

fair 

26 

■ i— « r -»_t 

rnastnKi 

lair 

0 

Miami 

fair 

28 

fair 

17 

Brussels 

shower 

9 

Dew 

sun 

33 

Hong Kong 

cloudy 

19 

Mian 

sun 

18 

shower 

24 

Budapest 

fair 

14 

Dubai 

fair 

25 

Hondufci 

doudy 

25 

Montreal 

fair 

-1 

fair 

8 

C-hagen 

snow 

4 

Dubfin 

fair 

9 

Istanbul 

sun 

14 

Moscow 

doudy 

rain 

4 

fair 

35 

Cairo 

fair 

28 

Duhiovnlk 

fe* 

IB 

Jersey 

fafr 

9 

Munich 

13 

fair 

18 

Capa Town 

sun 

30 

Etflribumh 

Mr 

8 

Karachi 

sun 

30 

Nairobi 

d “g 

29 

cloudy 

13 

Caracas 

far 

25 

Fara 

sun 

20 

Kuwait 

sun 

26 

Naples 

17 


Strasbourg 

Sydney 

Ta ' 


Ur 

sun 

lair 

lair 

fair 

rain 

Mr 

rain 


SB 
25 
16 
16 
8 
29 

a 

14 
fair 23 


Quality flights made in Germany. 

Lufthansa 

German Airlines 


shower 

Las Palmas sun 

Lima cloudy 

Lisbon sun 

London fair 

Lujcbourg ram 

cloudy 
sun 

Madrid fafr 

Majorca sun 


18 

22 New York 
27 Nice 
20 Nicosia 
S Oslo 
9 Pads 
IS Perth 

19 Prague 
22 Rangoon 

20 Reykjavik 


Mr 
sun 
sun 
tOr 
fair 

do a 

rain 

fafr 

doudy 


28 Toronto 
7 Tunis 
IS Vancouver 
18 Venice 
1 Vienna 
13 Warsaw 
35 Washington 
9 Wefcigton 
35 Wfanlpeg 
-3 Zurich 


sun 

Mr 

rain 

Mr 

sun 


20 
23 
12 
2 
21 

rain 9 
sun 15 
fair 15 
rain 8 
sun 11 
shower 17 
doudy 5 
doudy 12 


THE LEX COLUMN 

Floating in rough water 


The lady may be old but she certainly 
baa a fertile imagination. Until 3J0pm 
yesterday it looked as though the 
Bank of England was in an appalling 
quandary over the gilt market. It had 
to decide whether to have an auction 
this month. To duck out might have 
gpoTp o d an admission of inability to 
fund at all Ih such difficult markets. A 
long-dated issue could have easily 
flopped. A very short-dated one would 
have appeared like a commitment to a 
prompt cut in interest rates. By opting 
for a floating rate issue instead, the 
Bank seems to have uncovered a rich 
new v&m of demand. 

The issue will almost certainly 
appeal strongly to banks which are 
facing shortage of loan demand, espe- 
cially since it requires tnfammi capital 
backing under Basle risk ratio rules. 
Of course, targeting bank investors is 
only possible because the Treasury is 
nowadays prepared to count sales of 
gUts to banks as part of official PSBR 
funding. Abuse of tins relatively new 
freedom could be seen as a wanton 
disregard of inflationary risk. Some 
will doubtless also construe yester- 
day's move as an admission that fixed- 
rate yields have troughed. 

The other interpretation Is that a 
readiness to issue floating rate debt is 
an indication of the Bank’s faith in its 
ability to curb inflation, for winch the 
same reason that it likes to sell index- 
linked gilts. This argument only holds 
good if the authorities are cautious 
about their recourse to the banks. 
They need to sell enough floating rate 
debt to ensure the issue is liquid and 
to allay fears of over-supply in the 
fixed-rate market. But funding at float- 
ing rates is so easy that it could 
become a habit Than discipline over 
economic policy would disappear. 

House of Fraser 

The Fayed brothers will not be the 
only ones to be slightly disappointed 
by the 180p price tag which was even- 
tually hung on the House of Fraser 
group. Earlier soundings suggested 
that the group might go for more than 
£2.00 a share, and the lead manager, 
SG Warburg; limited the public offer 
to 25 per cent of the shares. If the 
bank believed that pre-marketing to 
institutions would control the float 
better and encourage a higher price, it 
has been proved wrong. 

Institutions could see House of 
Fraser coming. The Fayeds were 
known to have explored other options 
and the market thus seemed disin- 
clined to pay up for a property which 


FT-SE Index: 321 8.1 (-37.6) 


UKgmsrfeW : < ; ' 



had not been placed elsewhere. Even 
the 25 per cant publicly offered could 
have been clawed back by mstitattona, 
so there was little incentive to chase 
the shares. 

Arguably a better tactic would have 
been to market the issue more heavily 
at private invest o rs, who are keen on 
businesses they know and can under- 
stand. More limited allocations to 
institutions might have caused a little 
hunger and, potentially, a higher 
price. It may be argued that in volatile 
conditions the issue had to be priced 
cautiously, but the 2&2 point rise in 
the FT-SE 100 this week hardly consti- 
tutes a bear market Still, the silver 
lining is that at I80p House of Fraser 
should be a lot more attractive to indi- 
viduals. Both Warburg and the Stock 
Exchange may be embarrassed if the 
issue is now heavily oversubscribed. 

Airlines 

Lufthansa and British Airways wHI 
be delighted by the US government's 
approval of their code-sharing agree- 
ments with US carriers. The potential 
benefits are perhaps best gauged by 
the vehemence of the opposition of 
rival US airlines. By effectively tap- 
ping intn the US domestic market, the 
two European airlines can help secure 
lucrative business traffic which is so 
critical to profitability. Although BA 
carries some 25m passengers a year, it 
makes two-thirds of its revenue from 
75,000 customers who regularly travel 
at the front of the cabin. 

BA’s Unk with USAir Is under a 
cloud, given the latter's severe finan- 
cial strains. But Lufthansa’s code- 
sharing arrangements with United 
should help it return to profitability. 


Lufthansa could gain up to DMlOOm a 
year in extra revenue through code- 
sharing. That should ease the way for 
the government to reduce Us majority 
shareholding as part of Its privatisa- 
tion programme. Lufthansa’s closer 
Hnfat with United will be especially 
painful for Delta, which has a big pre* 
ence at Frankfort. The few big US 
carriers without a European partner 
most be growing ever more desperate 
to get hitched. 

Despite recent accords, there remain 
big uncertainties about the regulation 
of some transatlantic routes. While 
passengers would appreciate the vir- 
tues of further liberalisation, it is not 
dear that shareholders should be so 
enamoured As the domestic US air- 
line market graphically illustrates, too 
much competition can be an uncom- 
fortable thing. 

Scottish Amicable 

Scottish Amicable is not the first UK 
life insurer to see continental Europe 
as a land of opportunity. Changes in i 
European law mean that its uew 
Dublin-based rawipany will be able to 
sell the same products in Naples as in , 
Nether Wallop. The flowering of inde- j 
pendent financial advisers in coun- I 
tries such as Germany is especially to , 
its liking. Others such as Commercial i 
Union and J. Rothschild Assurance, in | 
which Scottish Amicable has an 
equity interest, favour building ties 
with overseas banks. 

Whichever approach proves more j 
successful, ths reasoning behind over- 
seas expansion is not difficult to 
fethom. With around 250 life insur- 
ance companies operating in the UK, 
the domestic market looks hopelessly 
ov er crowded The emergence of banc- 
as sura n ce - and the steady erosion of 
ties with banks and building societies 
that comes with it - is making mat- 
ters worse. 

Since only a quarter of the £100m 
raised from the bond market is 
December has been sunk into the 
European venture, Scottish Amicable 
can afford an initiative closer to home. 
The company has set its face against 
building a sales force erf its own, on 
the grounds that such investment is 
rarely profitable. Buying an unquoted 
competitor, slashing overheads and 
r unning off its existing business - the 
approach being explored by Sir Mark 
Weinberg - might yield a decent 
profit. Unless the move really 
strengthened Scottish Amicable’s com- 
petitive position, though, such oppor- 
tunism holds little appeal 



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SECTION II 


Weekend March 19/March 20 1994 


A surprising question con- 
fronts the western powers. 
Should they fear Russia? 

The west, it seems, has 
come to believe that Russia 
is uo longer a menace - after Mikhail 
Gorbachev opened it up and Boris Yeltsin 
introduced democracy. Rocky, volatile 
impoverished, it may be. but not danger- 
ous; no longer an adversary. 

Since the collapse of the Soviet Union, 
western politicians have been how 

to use aid to encourage Russia to be 
friendly, democratic and market-orien- 
tated. However, in the US the debate has 
moved to an older question; whether the 
Russian bear, reborn after communism, 
should be feared as much as tamed. 

The elections in December did most to 
re-open the question. The party which 
achieved by far the largest number of 
votes in the State Duma was Vladimir 
Zhirinovsky’s Liberal Democrats, who 
believe that Russia should at least re-con- 
quer the space formerly occupied by the 
Soviet Union. 

AJexei Mitrofanov, “shadow foreign min , 
ister" for the LDP. says that “we consider 
the ex-Soviet republics as integral parts of 
Russia, and our idea is to restore them to 
the previous (Russian imperial) status. 
Not separate countries - and not even 
something like the Soviet republics. There 
will be for example no Ukraine - but prov- 
inces, as Kiev province, Donetsk province 
and so on - only local administration, all 
connected to Moscow." 

The oddly named Liberal Democrats are 
not the only Russians to hold such view. 
The powerful Russian Co mmunis t party 
and many other groups inside and outside 
the parliament have also founded their 
popular appeal on the aggressive reasser- 
tion of Russian power in the “near 
abroad" - the revealing appellation for the 
former Soviet states. 

They are the inheritors of a massive 
wave of popular revulsion against the 
arrogance of the west, the impoverishment 
of Russia and. most of all, the sudden 
estrangement of more than 25m Russians 
living in the “near abroad" from a 
shrunken motherland. 

They are prey to theories of conspirato- 
rial domination and control whose defin- 
ing points can appear to be plausibly 
anchored in reality. 

Alexander Prokhanov, whose weekly 
“DEN” was the bible of the nationalist 
movements and which has appeared again 
in a new guise after being banned, is the 
most talented of these theorists. 

He says; “It’s quite simple. The US is 
exercising its dictatorship over the domes- 
tic and foreign policies of Russia, over her 
cultural and ideological policies. So Rus- 
sia's foreign policy in all regions of the 
world must match the national interests of 
the US in these regions. 

“America’s policy towards the geopoliti- 
cal space known as the Soviet Union 
amounted to seeking its dismemberment 
and undermining Russia’s potential, then 
keeping this potential at a safe level for 
America. In these aims (President Boris) 
Yeltsin and (Foreign Minister Andrei) 
Kozyrev have been accomplices." 

These arc not the voices of executive 
power in Moscow, but they are the voices 
of influence and of a powerful strand of 
popular protest. Both before the December 
elections and more obviously after, the 
executive power has shifted to accommo- 
date the nationalist revival. 

Kozyrev has moved furthest: from the 
too- uncritical westemiser be was when be 
came to office at the end of 1991. he has 


CONTENTS 

Finance & Family : Investing for 
income 

Details in At a Glance 


Beware the sickly 
Russian bear 


W -1 




become a nationalist statesman. He is not 
afraid of out-flanking Zhirinovsky on the 
need to keep the Kaliningrad enclave Rus- 
sian. He has been threatening on Ukraine 
and has allowed it to be thought he 
wanted Russian troops to remain in the 
Baltics indefinitely. 

In more considered public voice, an 
article he wrote a week ago in the daily 
Izvestiya underscored that “Russia is 
doomed to be a great power" with inter- 
ests which conflicted with those of the 
west - but that these conflicts could be 
m a n aged peacefully as conflicts between 
friendly states everywhere. 

The devils lie in the details of what it 
means to be a great power. 

For Andr annik Mi gran y an, one of Presi- 
dent Yeltsin’s most publicly visible advi- 
sors, Russia “is a big power, economically 
stronger than any of its former republics". 
In relation to the “near abroad", he points 
out that Russia has a very serious interest: 
the Russians living outside the Federation; 
it needs accesses and routes to the Baltic 
and other seas through former republics; 
it needs to ensure sec urity . 

“All of these factors demand that Russia 
become a core for the reintegration of this 
space. Without this (reintegration) we can 
get many clashes, fights and wars - and 
we already have them." 

Thus Migranyan suggests at the pres- 
sure Russia can bring to bear on the sur- 


* Should the west 
spoon-feed its old 
adversary; shoidd it 
‘ cuddle up to Yeltsin? 
Or should it treat 
Russia as a serious 
country with its 
own serious national 
interests? John 
Lloyd reports 




iOi 


-I 




2 p 




rounding countries now struggling to 
establish viable statehoods. 

Economically. Russia dominates all but 
the lucky few which have substantial 
resources, such as Kazakhstan , Azerbaijan 
and Turkmenistan. It has proposed a rou- 
ble zone to bind together again stales 
whose links remain strong: but as the 
squeeze upon economies gets tighter, the 
criteria for entry also become tighter. 

Last week, the governor of the Central 
Bank of Belarus - the Slav state which 
has sued for an economic union with Rus- 
sia once more - said that Russia wanted 
complete submission to central economic 


and financial policy. Belarus is so pros- 
trate and so politically inert that Russia 
may get it If so, it will be a template for 
other economies - and the prize would be 
Ukraine, whose economy is in full col- 
lapse. 

Militarily, Russia has bases in every one 
of the former Soviet states except Lithua- 
nia and Azerbaijan (and it is likely to get 
its bases back in the latter before long). 
Annies have “kept the peace” in Georgia, 
Armenia, Moldova and Tajikistan - some- 
times using, as Sergei Karaganov, a presi- 
dential advisor on foreign policy, wrfly 
admits, “nineteenth century methods". 


In Georgia, the Russian army was deci- 
sive in first destabilising, then (when he 
had come to heel) underpinning, the posi- 
tion of Eduard Shevardnadze, the head of 
state; in Tajikistan, the regime would fall 
without it; in Moldova, the 14th army’s 
presence protects the interests of the 
majority Russian speakers on the left bank 
of the River Dnestr and effectively divides 
the country into two. Especially in Mol- 
dova and Georgia, where Yeltsin gave 
assurances which the army later ignored, 
it seems as though the army is conducting 
its own foreign policy. 

Politically, the great wave of national- 


ism which swept through the Soviet Union 
between 1989 and 1992 has all but 
exhausted itself - except in Russia. Non- 
Russian nationalism in the other republics 
was also anti-R ussian nationalism. So the 
Russian democrats were unable to cement 
alliances with nationalists in those other 
republics. 

Nationalism is now replaced with 
exhaustion in many states (the Baltics are 
an exception: they remain strongly inde- 
pendent and in the case of Latvia and 
Estonia, strongly anti-Russian). The sup- 
port for nationalist politicians has 
declined everywhere, including in 
Ukraine. 

The new state elites have been unable, 
some unwilling, to develop the attributes 
of statehood. There is some force to the 
comment of Sergei Stankevich, one of the 
leaders of the centrist Party of Reconcilia- 
tion and Accord, that ‘it Is their choice to 
come to us. not ours. We simply open our 


doors to our neighbours: you cannot inter- 
pret this as imperial behaviour". 

But that is precisely how an increas- 
ingly influential swathe of western elite 
opinion is interpreting it. Henry Kissinger, 
the former US Secretary of State in 
articles and speeches: former National 
Security Adviser Zbigniew Breezinski in a 
widely quoted article published in Foreign 
Affairs; the influential columnist William 
Safire; the former head of the US National 
Security Agency General Wiliam Odom - 
all of these are actively propagandising 
against (as they represent it) a US-led, 
western policy of putting Russia first, 
cuddling up to Yeltsin, letting down the 
East Europeans and other former Soviets, 
and pretending there is a partnership. 

In New York, Dr Kissinger says: “We are 
dealing with Russia not as though it were 
a serious country with its own serious 

■ Continued on Page X 


The Long View /Barry Riley 

Debatable dividends 


Sport : Rugby - France 
contemplates catastrophe XIII 

Property : Homes for mistresses 
and toyboys XVI 

Perspectives : Bus ride to robbery 
in Soweto XII 

Science : Solrlons on the crest of a 
wave 

Private View: The defender of pure 
French XXII 



Michael Foot - “die man who saved the 
Labour Party’ - a new biography— XVIII 


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An increase of 50 per 

0* ' cent in the dividend of 

to 0 UK merchant bank 
Schroders this week, 
though scarcely typical 
has provided a reminder 
that dividends are 
showing unexpected 
Hr m <4HI buoyancy this year. 

Although earnings 
cover has become thin, by historical 
standards. British companies are ready 
to be generous. 

At present the income on the All- 
Share Index is showing growth of 4.6 
per cent on a year ago. adjusting for the 
negative effect of last year’s dividend 
tax changes, and the growth rate could 
expand by a percentage point or two as 
the results season progresses. This is 
not bad when, for comparison, pay is 
rising at only 3% per cent in the UK and 
underlying retail price inflation is a lit- 
tle less than that 

Elsewhere in Europe shareholders are 
not so fortunate. In Germany, for 
instance, the big companies are display- 
ing their traditional readiness to cut 
dividends in bad times: the big chemi- 
cal groups BASF and Hoechst have 
both trimmed by 20 per cent or so. 

During the past five years, since 
shortly before the recession began to 
bite. UK dividends have grown by a 
cumulative 7 per cent in real terms, 
while capital investment in real terms 
in the UK has fallen by 14 per cent 
Profits are heading this year towards 16 
or 17 per cent of GDP. close to a post- 
war peak, and yet output is no higher 
than four years ago and imports are 
rising rapidly. Has British short-ter- 
mism come to dominate once again, 
with companies trying to keep share- 
holders happy rather than invest in the 
future? 

There is no simple trade-off here, 
because companies are becoming quite 
flush with funds. Indeed, many forecast- 
ers expect that the corporate sector will 
begin to expand its investment again 
quite markedly this year. But will com- 
panies find opportunities that are prof- 
itable enough? Once more there are 
signs that the British economy is 


looking less vigorous than are British 
pics. Too many chief executives, it 
seems, are looking for a 20 per cent 
return on equity, even though inflation 
is much lower than it used to be 

Consider the puzzle of the so-called 
output gap, which economists now 
attempt to measure rather as the old 
theologians calculated the number of 
angels on a pinhead. It is the gap 
between current output and underlying 
productive capacity, and allegedly 
explains the downwards pressure on 
prices (with factory gate wholesale 
prices rising by only 3J per cent in the 
year ended February, down from 4 per 
cent-plus reached at one stage last 
year). 

But this output gap coexists rather 
oddly with the £I3.4bn trade gap in visi- 
ble goods last year. You would think 
that if there was surplus capacity there 
would tend to be production in excess 
of domestic requirements. Soon the gov- 
ernment may start to become restless 
as it realises that import volumes are 
rising <at more than 3 per cent a year) 
and that the balance of payments defi- 
cit may threaten sterling. It will become 
agitated if capital investment Sails to 
recover and “restructuring", not to 
mention “downsizing", continue to be 
the buzz words in British boardrooms. 

If capacity is being sidelined it must 
be that it is not regarded as profitable 
enough to be operated at current or 
immediately prospective price levels. 
For a time, British industry may con- 
tinue its conjuring trick of generating 
more profit out of scarcely rising out- 
put. But an attempt to achieve much 
higher rates of return than are required 
by competitors in countries such as 
Germany will inevitably lead to a loss 
of market share in both the home and 
export markets - unless there is a fur- 
ther substantial sterling devaluation, 
which still seems unlikely. 

International economists do a lot of 
work on the competitiveness of labour 
forces, and how expensive workers in 
Germany, costing ¥25 an hour, will tend 
to lose out to Chinese workers costing 
$3 an hour or less. Perhaps more inves- 
tigation could be done on how share- 


holders m aking ambitious demands can 
price their companies out of more com- 
petitive market sectors. 

We are coming up to a tricky period 
of transition for the British economy. 
Consumer spending has been driving 
the recovery so far but domestic con- 
sumption is already very high and if 
the nest stage is to be healthy there 
must be an emphasis on capital invest- 
ment and exports. But if domestic com- 
panies have excessive expectations of 
profits, because they seek to satisfy the 
ambitions of pension fund investors, 
who have enjoyed dividend growth of 10 
per cent and a total rate of return of 22 
per cent on UK equities annually on 
average over the past 15 years, they 
may be scratching around for opportu- 
nities. There is a limit to the availabil- 
ity of newly-privatised monopoly utili- 
ties with huge cost-cutting potential 

In an open economy, of course, 
greedy domestic investors will be out- 
bid by foreigners. We have seen key 
industries such as motors (Rover, for 
instance) and semiconductors drift into 
overseas control. Perhaps we can afford 
to leave the duds and the marginal 
cases to overseas’ owners. With luck, 
they will continue to run the operations 
in the UK, at least for a while. But the 
persistence of a substantial trade gap 
through a deep recession indicates a 
chronic shortage of available capacity. 

There is a mirror image contrast with 
Japan, where in the Tate 1980s vast 
amounts of capital became available to 
industry at almost zero cost. The result 
was an explosion of investment in low 
return productive capacity and today 
Japan runs a trade surplus of $140bn a 
year. This is not an example to follow 
either, because economic logic requires 
that the yen must be squeezed up to 
ruinous levels so as to force the closure 
of capacity and restore some sort of 
equilibrium. Investors, meantime, have 
lost heavily. 

In the UK. in spite of recent setbacks, 
stock market investors are sitting 
pretty by comparison. Managers of UK 
companies are making the assets sweat 
But soon the government could be 
sweating too. 


CONSISTENT 

PERFORMER 










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Whrttingdale are recognised as one of the leading UK specialist 
managers of gill -edged securities, with over £1.700 million 
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WH1TT1NGDALE 

GILT-EDGED EXPERTS 

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MARKETS 


London 


If only 
he’d gone 
to Dallas 

Roderick Oram 


Life after the tax hike 

Indiras rebased 


Rotates, General sector rstdfve 10 The FT-$E-A AB-Share 


F or some in British 
business, this was a 
week for moving on. 
Shareholders of Brit* 
ish Aerospace met on Wednes- 
day to vote on the sale of 
Rover to BMW. Some protested 
outside the meeting with a 23- 
year-old Land Rover and a 
“Sale of Rover Industrial Dun- 
kirk” banner. Others protested 
with equal passion inside, vot- 
ing ill to 42 against the sale. 
But the proxies, mostly from 
institutions, swung it for a 
final count of Il9.€m for the 
sale and 2.9m against. 

Or the board members who 
took the flak from sharehold- 
ers, John C ahill, chairman, is 
retiring to Florida with £3.5m 
remuneration and George 
Simpson. Rover's chairman, is 
off to be chief executive of 
Lucas in Birmingham. 

if only Alan Greenspan, 
chairman of the US Federal 
Reserve Board, had gone to 
Dallas yesterday as pl ann ed, 
markets in the US and abroad 
could have ended the week on 
a quieter note and faced next 
week with less trepidation. 


The last time he cancelled a 
speech there to attend to press- 
ing business in Washington 
was Black Monday, October IS, 
1387. 

His summons to the White 
House yesterday sent rumours 
coursing through global mar- 
kets. Was President Bin Clin- 
ton trying to dissuade the Fed 
from raising interest rates? Or 
was the Fed trying to prepare 
the politicians for a big rate 
increase? 

The answer will not be 
known until after next week's 
meeting of the Fed's policy- 
making open markets commit- 
tee. But the prospect of tighter 
US monetary policy, following 
reports this week of very 
strong US economic growth 
but subdued price pressures, 
knocked markets in London 
more than in New York. 

All week in London, gilts 
performed worse than bonds 
abroad, ending the week down 
some L5 per cent The main 
domestic economic news that 
harmed gilts was an unex- 
pected pick up in the growth 
rate of average earnings in 



1991 92 s 

Source *Go(dmsi Sacha. 

January, a factor that could 
delay UK interest rate cuts. 

For the first time in many 
weeks, however, equities man- 
aged to hold their own against 
a Calling bond market In spite 
of being badly unsettled yester- 
day by Greenspan and the 
expiration of derivatives con- 
tracts. the FT-SE 100 index fin- 
ished the week op a net 263 
points at 3,218.1 
The other key UK economic 
statistic of the week was the 
0.5 per cent tell in retail sales 
in February. This weakness 
could be taken, however, as a 
positive and rational action by 
consumers ahead of April's tax 
increases. Rather than sud- 
denly curb their spending 
when their pay packets shrink, 
they are already adjusting 
their budgets, argue David 
Walton and Martin Brookes, 
economists at Goldman Sachs. 

Moreover, many people 
appear to be over-estimating 


94 


1991 


92 


93 94 

Soorce: FT GrapMta 


HIGHLIGHTS OF THE WEEK 


Price 

yday 

Change 
on week 

1993/94 

High 

1993/94 

Low 


FT-SE IDO Index 

3218.1 

+282 

3520.3 

2737.6 

Irmreasud dividend news 

FT-SE Mid 250 Index 

3885.6 

+83 

4152.fi 

2876.3 

Overshadowed by Footsie stocks 

Barclays 

522xd 

+41% 

652 

382 

Dividend optfodsm/Nomwa “buy" note 

Euro Disney 

41214 

-1214 

1180 

268 

Rights Issua/restnieturfeig 

Gold Greenlees Trait 

184 

-55 

295 

183 

Dividend to be cut 

Graham Group 

216 

+13% 

218 

195 

Buoyant bidders merchants 

JIB 

195 

+15 

215 

162 

WeK-recehred figures 

Learmonth & Burchett 

96 

-44 

365 

95 

Profits warning 

Legal & General 

502 

+35 

547 

408% 

Profits up 56% 

National Power 

470 

+33 

510 

273 

NafWest Securities "buy" rec 

Persimmon 

313 

-24 

382 

197 

£48m rights issue 

Salisbury (J) 

388 

+28% 

584 

342 

Brokers positive/ rationalisation 

Schraders 

1168 

+116 

1460 

487% 

Profits i*> 8 S%/dhr 14 ) 50% 

United Biscuts 

348 

+19 

437 

324 

Results provide relief 

Wolseley 

935 

+40 

975 

533 

Better than expected results 


the im part of the tax in creases 
Once they realise the true hit 
is smaller, they will feel more 
inclined to spend. As the chart 
shows, Goldman Sachs is fore- 
casting that retail sales volume 
has been shrinking before the 
tax cut but will recover 
quickly afterwards. Concern 
over spending has dragged 
down the general retailers sec- 
tor in the FT-SE- A All-Share 
index. 

The improvement in finances 
of those people in work and 
with a mortgage will continue, 
the economists believe. They 
are forecasting 3 per cent real 
annual growth in post-tax, 
post-mortgage income in the 
four years 1991-94. Thus con- 
sumer spending will rise by 
about 2.5 per cent this year, 
the same rate as last year. 
Partly because of this strength 
in consumer spending, the 
main driver to the current 
recovery in demand, GDP will 
rise 3 per cent this year and 
next 

It remains to be seen 
whether the Government and 
the Bank of England are as 
convinced as Goldman Sachs 
aboot the durability of con- 
sumer spending and growth to 
refrain from cutting interest 
rates. 

Recovering markets was the 
theme running through many 
results reported this week, 
mast notably in the construc- 
tion and bunding material sec- 
tors. Wimpey doubled its trad- 
ing profits last year to £41m 
thanks in part to building 25 
per cent more houses than a 
year before. The general con- 
struction sector’s recovery is 
accelerating. Orders rose 30 per 
cent in the three months to the 
end of January from the samp 
period a year earlier, to the 
best level since 1 989. 


In the materials sector, Wol- 
seley, Travis Perkins. Heywood 
Williams and Marley all 
reported this week sharp 
upturns in operating profits 
although some of them were 
hit by restructuring costs. For 
others, notably Wolseley, a lit- 
tle pick up in demand is going 
a long way. 

"If you have a formula that 
seems to work, then it seems 
advisable to press on." said 
Jeremy Lancaster, its chair- 
man. By his standards that 
was a vague and subdued com- 
ment but he said he felt con- 
strained by the Stock 
Exchange's new rules on dis- 
closure. 

Restructuring - underway 
and complete - was a theme 
among other results in the 
busiest reporting week so far 
this season. United Biscuits 
faces the biggest task, taking a 
£121 m charge mostly to sort 
out its Keebler subsidiary in 
the US. This left pre-tax profits 
down 28 per cent at £116. 7m 
and the dividend n whanged at 
15.3p. On a more modest scale. 
Simon Engineering reported a 
£160m loss for the year and 
said it would launch a £50m 
rights issue once it had renego- 
tiated its bank debt 

Sometimes, though, surgery 
alone foils to restore 
health. Saatchi & Saatchi is 
now a lean global advertising 
group, reporting a return to 
pre-tax profits of £19 -2m. But 
flat revenues indicate it is hav- 
ing difficulty winning new cli- 
ents. In an business where up- 
beat morale is a crucial ingre- 
dient one drag on performance 
appears to be tensions between 
some senior management 'and'’ 
Maurice Saatchi, the ch airman. 
He appears to have adapted 
less well than his lyiiiwpips to 
the spartan regime. 


Serious Money 

Pilot error brings 
F&C to earth 

Gillian O’Connor, personal finance editor 


S avings schemes that 
look too good to be true 
usually are. When F&C 
launched its High 
Income unit trust, with a 10 
per cent yield, just over a year 
ago, it seemed outstandingly 
attractive. 

True, the company itself 
pointed out that the yield was 
not guaranteed. And it said, 
openly, that investors were 
sacrificing most of their hopes 
of capital growth in order to 
enjoy this yield. But investors 
loved it 

Many were despairing refu- 
gees from hanks and building 
societies - and they had good 
reason to despair. For as the 
chart on page in shows, their 
income was being squeezed, 
not just in no minal terms but 
also in real (inflation-adjusted) 
terms. 

The trust was structured 
cleverly so that it could be 
tucked inside a general per- 
sonal equity plan. So, investors 
could enjoy the income free of 
tax. Quite bow the fund man- 
agers achieved all this was a 
bit harder to work out 
Just over half of the money 
went into blue chip UK shares 
- which gave the fund its gen- 
eral Pep credentials. The bulk 
of the rest went into "designer 
debentures” - short-term loans 
to blue chip borrowers which 
came with a bunch of premi- 
ums from selling options 
"embedded" in them. The 
option element performed the 
miracle of getting the yield on 
the debentures up to 25-30 per 
cent Repeat 25-30 per cent. 

The snag was that capital 
losses were also effectively 
"embedded" in the debentures: 
that is, they were likely to pro- 
duce a capital loss on redemp- 
tion. The rump of the fund was 
kept in rash, with part going to 
bay FT-SE 100 put options 
which would act as a safety net 
if the market fell out of bed. 

If some of this leaves you 
boggling, you are not alone. 
Few people understood even 
the broad principles of the 
fund. And it was impossible for 


even a knowledgeable outsider 
to make any sensible judgment 
on the detail. The broad idea 
seemed to be that the deben- 
tures were a way of turning 
capital into income, but the 
management hoped the share 
portfolio would produce com- 
pensatory capital growth. 

F&C was. however, pretty 
clear about what the effect of 
any fixture changes in interest 
rates would be: "The fund's 
deposit income will be lower 
when interest rates are low. 
But Foreign & Colonial's calcu- 
lations show that the projected 
10 per cent income return will 
be achievable with base rates 
in the range of 4 per cent to 14 
per cent. The income generated 
by the fund will not be affected 
by base rate cuts within this 
range.” 

Not an actual promise, but it 
is hardly surprising that this 
statement acted as a clarion 
call to the financial advisers 
who made so much money sell- 
ing the High Income fund. In 
just over a year, the F&C fund 
pulled in £500m, a remarkable 
amount for any new trust 

Another fund management 
house. Morgan Grenfell, pro- 
duced a copycat product which 
has attracted £40m. But a third 
group. Save & Prosper, which 
had been p lanning to enter the 
market pulled out suddenly in 
December. It explained that it 
was worried that a fund yield- 
ing as much as 10 per cent 
would devour its capital in 
order to meet its income tar- 
get It reckoned there was a 50/ 
50 chance of investors losing 
half their capital in seven 
years; the rest would then 
evaporate even taster. 

This week, even though base 
rates are 5% per cent, F&C 
announced plans to cut the 
High Income fund's yield from 
10 to 9 per cent at the end of 
June. Its main explanation was 
that the reduction in money 
market rates had reduced the 
level of option premiums, and 
that it was expecting rates to 
foil further. 

Well, yes. But what really - 


leapt to the eye was the capital 
performance of the units. Any- 
one who bad paid the full 25p 
to buy the shares on their ini- 
tial launch would, after costs, 
this week have got hack only 
22.6p. So, a near-10 per cent fall 
in capital value neatly cancels 
out the 10 per cent income 
received over the year. 

Roughly half the fall can be 
put down to the initial charge 
on the fund. But the rest is 
genuine capital loss resulting 
from the managers' chosen 
strategy. The Morgan Grenfell 
units have also shrunk in 
value since their launch in 
September. The stock market 
as a whole has risen over the 
period: the FT-SE 100 index, 
which includes the major com- 
panies in which the F&C fund 
Invests, is around 15 per emit 
higher than when the fund was 
launched. 

TO be brutal, it has been a 
very disappointing investment 

That, though, is history. 
What investors want to know 
now is whether they should 
cut their losses, or whether 
F&C has just been going 
through a sticky patch. 

Some brokers have started 
suggesting investors should 
switch into equity income 
fluids, which have produced 
far better total returns 
recently. But switching is 
always costly. And it is by no 
means certain that stock mar- 
kets will provide such a 
favourable background for 
other funds over the next year. 

Does the F&C fund warrant a 
cold shoulder In its own right? 
Here are two points to ponder. 

First, the fact that some capi- 
tal has been lost already mates 
it even harder for F&C to pro- 
duce the goods in future. It wlE 
have to run ever foster to 
stand still. Getting a 9 per cent 
yield this year could prove as 
costly in capital terms as get- 
ting a 10 per cent yield last 
year. Second, it is hard to feel 
comfortable relying on a black 
box formula that has produced 
a crash landing an its maiden 
flight 


f 


AT A GLANCE 


Finance and the Family Index 


Investing for income III 

Avoid Vat on fuel bills V 

Fee based advisers: Shepherd Associates — — —VI 

CGT and pre-1982 shares _Vt-VII 

Persona] Pensions: Norwich Union — Vffl 

Your questions answered - -VBI 


Emerging markets Recent new Issues 

fFC Composite (£ tanra) Rwriurn % rise on fat daysfcadhg 

220 I SO - 



Fall in world’s emerging 
stock markets 

The world's emerging stock markets continued the fall that 
began last month. The setback affected even Latin American 
markets, which had taken aver tram south east Asia as investors' 
favourites - though some individual markets bucked the 
declining trend. Michael Hughes, of BZW, said that although the 
emerging markets bubble has not burst there has been a clear 
change in attitude by investors. 

Debutantes find favour 

As House of Fraser led the latest batch of new Issues towards 
the stock market (see page IV), this week’s debutantes won a 
generally favourable reception. Premiums on the first day's 
trading ranged from just under 4 per cent for Applied Distribution 
to more than 40 per cent for Waste Recycling. 

Hoare Govett sterling bonds 

Hoare Govett is planning an issue of sterling bonds, with 
additional income generated by Wakfner Financial Corporation, a 
Chicago based money manager which boasts annual returns of 
47.6 per cent over the last 10 years. 

Eighty per cent of the money Invested is used to buy triple-A 
rated sterling bonds for collateral, while the remaining 20 per 
cent is managed by Waldner, which has a technical "quantitative" 
management approach. 

According to Hoare Govett, the worst case is that the investor 
gets half the interest normally paid on a tripte-A rated sterling 
bond, but based on past performance returns would be close to 
20 per cent 

Legal & General bonus rate cuts 

Legal & General has cut all Its with-profits reversionary bonus 
rates but those on terminal bonuses are mixed, with some befog 
held, others cut and some increased compared to 1993 rates. 
The maturity value of a 25-year with-profits endowment policy, 
taken out by a man aged 29 paying C30 a month, wiH be £62.043 
on April 1. a slight rise from £60.112 last year. Maturity values for 
10-year endowments are virtually unchanged while the value of a 
15-year endowment on the same assumptions wilf be lower at 
£14.237 compared with £14,742 last year. 

Smaller companies decline again 

The Hoare Govett Smaller Companies Index (capital gains 
version) fell 0.6 per cent to 1812.96 In the week to 17 March. The 
FT-SE- A AH Share Index 'increased by 0.3 per cent over the same 
period. 


Good 

T here was plenty of 
promising news on 
inflation this week, 
continued signs of 
strength in the economy, and 
an encouraging earnings fore- 
cast from a big manufacturer, 
yet it was not enough to lift 
spirits on Wall Street 
If any more evidence of 
financial markets' jittery 
mood was needed, it came yes- 
terday morning, when bond 
and stock prices dropped 
sharply after it was reported 
that Alan Greenspan, chair- 
man of the Federal Reserve, 
had been called to to see Presi- 
dent Clinton. 

Although the Fed said the 
meeting was routine, it was 
unplanned - Greenspan had to 
cancel an appointment in 
Texas to make it back to 
Washington DC in time. This 
prompted speculation among 
traders and investors that the 
meeting was somehow a signal 
that the Fed was about to raise 
interest rates again. Perhaps, 
the rumours went, the White 
Bouse had got wind of plans 
for another monetary policy 
tightening, and wanted to call 
in the Fed chief to explain 
himself. 

The speculation was way off 


Wall Street 


news on inflation fails to lift spirits 


the mark. The president and 
the Fed chairman meet fairly 
regularly, and the White 
House said it had called 
Greenspan to Washington on 
Friday because Clinton was 
going to be difficult to contact 
over the following weeks due 
to a hectic travel schedule. 
Also, it would be extremely 
unlikely that if the president 
wanted to dissuade the Fed 
from raising interest rates, he 
would choose to do it at so 
public a meeting. 

Yet, the speculation sur- 
rounding the Cllnton-Green- 
span parley was enough to 
take 17 points off the Dow 
Jones industrial average in the 
first few minutes of trading, 
and send the benchmark 30- 
year government bond down 
almost a point, pushing the 
yield back above 6.9 per emit. 

Fortunately, once everyone 
had calmed down, the stock 
market came to its senses, and 
the Dow recovered its early 
losses. Bonds, however, 
remained anchored in negative 
territory, perfectly illustrating 
the mess the Treasury market 
is in. For bond yields to have 
jumped back to 63 per cent in 
a week when all the news on 
Inflation was positive defied 


Dow Jones industrial Average 



logic. 

First, the February producer 
prices Index was released on 
Tuesday, and ft showed an 
increase of just 0.1 per cent In 
"core" producer price inflation 
(excluding the volatile food 
and energy components). 
Tben, a day later the con- 
sumer prices Index was 
reported to have risen by only 
0.3 per cent last month, a fig- 
ure that was in line with 


expectations and one that put 
the annualised rate of con- 
sumer price inflation QJJ per- 
centage points below the 1993 
- which was itself the lowest 
inflation rate recorded in 
years. 

Finally, on Thursday, the 
Federal Reserve Bank of Phila- 
delphia issued its monthly 
report of local economic condi- 
tions. It noted that prices of 
goods sold to the region had 


moderated during the month. 
This was especially welcome 
news, because it was the Phila- 
delphia's Fed's warning about 
rising inflation in its local 
markets that had triggered a 
February sell-off of bonds. 

Yet none of this was enough 
to lift bond market investors' 
spirits, and the gains Trea- 
suries had earned midweek 
were quickly wiped oat on 
Thursday and Friday. Admit- 
tedly, stocks fared better, espe- 
cially In the latter half of the 
week, bnt it was clear that 
both markets are not going to 
calm down in a hurry, what- 
ever the inflation facts say. 

This week, thankfully, was 
not all about inflation. Second- 
ary stocks, as measured by the 
Nasdaq composite index, put 
in a good showing. The Nas- 
daq composite reached an 
all-time high of 803.85 on 
Thursday, powered by strong 
demand for technology stocks. 
Traders said Nasdaq stocks 
bad become oversold earlier 
this month, and with cyclicals 
and larger-capitalisation 
issues languishing, investors 
jumped into technology com- 
pany and other growth-ori- 
ented stocks in search of bar- 
gains and quick pin« 


There was also some heart, 
enlng news from a leading 
manufacturer. Caterpillar, the 
world's largest maker of earth- 
moving and construction 
equipment, predicted healthier 
first quarter earnings than it 
had originally estimated, and 
announced plans to hire addi- 
tional workers to cover a 
surge in demand. It was the 
third time since November 
that Caterpillar has had to add ' 
to its workforce. 

Ignoring Inflation jitters, 
and the bearish bond market, 
this is the kind of news inves- 
tors want to hear - a strength- 
ening economy, growing . 
demand for goods and ser- 
vices, an expanding labour - 
force, and improving corporate # 

earnings. Not surprisingly, all 
of this has done wonders for 
Caterpillar's share price. From 
a low 357% last year. Caterpil- 
lar's stock has soared more 
than 100 per cent. 

Patrick Harverson 

Monday 3862^8 + 08.28 

Tuesday 3849.59 - 13-89 

Wednesday 3848.15 - 01.44 

Thursday 3865.14 + 1649 

Friday 


F or those with a 

pessimistic turn of 
mind. Thursday's 
results from United 
Biscuits raised a familiar 
question: Is the company big 
enough to survive in the 
changing world of food 
manufacture? 

The thesis is 
straightforward- Food 
processing is being dominated 
more and more by a handful 
of giants such as Nestle or 
Unilever. They can link their 
operations across whole 
continents, and have 
international brands. 

They can afford to drive 
down the cost of production 
and force up their marketing 
spending. They can afford to 
invest across the developing 
world, where the real growth 
lies in the next century. In that 
light, UB’s position looks 
rather shaky. 

Historically, much its most 
important market outside 
Britain has been the US. On 
Thursday it announced 
restructuring charges there 
of more than £90m. Its US 
profits are past the worst - 
but its margins are still half 
what they were two years ago. 


The Bottom Line 

Is UB a crumbling cookie? 


and its market share is down. 

The position is not much 
brighter at home. UB has a 
dominant 44 per cent of the 
UK biscuit market but its 
profits there fell 10 per cent 
last year. In snacks, where it 
is also market leader, profits 
fell 4 per cent last year. 
Retreating to the home market, 
plainly. Is not an option. 

Eric Nicoli, UB’s forthright 
chief executive, will have none 
of this. First he argues, the 
foil in UK profits is not 
primarily the result of 
competition. 

Second, the US subsidiary, 
Keebler. clearly is recovering. 
Third, UB’s situation outside 
the UK and US has been 
transformed in the past four 
years. 

These points are worth 
taking separately. Inst year. 
Nicoli says, UK raw material 
prices increases were in double 
figures. The new crop of nuts 


It pays to be big 


United Biscuits ratetfvs to Uriisw (share prices) 
ISO — — 



- in which UB is market leader 

- was up 50 per cent With 
inflation running at around 
2 per cent, passing on that 
kind of increase was not 
feasible. 

In any case, he says, the 
competition is not so much 
International giants as small 


domestic operators trying to 
get lugger. Around Europe, 

UB is not dominated by big 
companies. In biscuits, it is 
number one in the UK, 
Ho lland. Denmark, Finland, 
Hungary and Poland Europe’s 
biggest biscuit maker. BSN, 
of France. Is No 1 to France 


and Belgium and, says UB, 
almost nowhere else. "Biscuits 
are BSVTs least profitable part 
and are a low priority for 
them,” Nicoli says. “They'll 
be reluctant to Avert fends 
to duff us up.” 

As for recovery in the US, 
it remains to be seen how 
sustainable it wDl prove. The 
restructuring plan has been 
produced by n new 
management installed last 
year. The old team, Nicoli says, 
had a volume-driven strategy 
which, although ideal in the 
1980s, was quite wrong for the 
1990S. 

Certainly, a recovery in the 
US is of central importance 
to the group. It must expand 
internationally; but, green the 
pressures in the UK, the 
domestic business cannot Fund 
such expansion on its own. 

It Is In the international 
field, though, that Nicoli 
makes his strongest case. Four 


years ago, UB had no 
significant presence outside - 
the UK and US. Last year, 
continental Europe and toe ' 
Asia/Pacific region produced 
22 per cent of group profits. 

Since UB cannot afford to 
match the likes of Nestle fn 
the breadth of its investments, 
it is focusing on Asia and 
central Europe. It has 5 per 
cent of the biscuit market in 
the Shanghai area. It ' 
manufactures in Japan, the . 
Philippines, Malaysia and . 
Indonesia. As for eastern 
Europe, Its dominance in 
Hungary and Poland speaks - 
for itself. 

Nevertheless, it remains 
worrying that, in all its chief 
markets. TJBisup against ' 
companies which, as corporate 
entities, are several times its 
size. This could help to expiate 
why UB's shares rose on 
Thursday in response to a 
headline fall in profits of 28 
percent 

If the company cannot 
succeed on its own, the assets 
which it has assembled so. 
painstakingly will be worth 
a good deal to someone else. 

Tony Jackson 



FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 



r 


c 


FINANCE AND THE FAMILY 


Investors who 
need income 

Scheherazade Daneshkhu looks at the snags 



The big squeeze on incomes 

UK banks base rate. % 



2 ~ 


0 I I I 1 I I I I 

1988 89 90 91 92 93 94 

Source; Datastream 


F or many investors, a decent 
income is a priority - but get- 
ting one has become increas- 
ingly difficult since the steep 
fell in interest rates over the 
past IS months. Providers are finding the 
going tough, too. This week. Hypo F&C's 
High Income unit trust, which has pulled 
in more than £500m since its launch on the 
back of an offer to pay an animal io per 
cent, said it would cut the payout to 9 per 
cent from June (see Serious Money on 
page II). 

Since the launch of the trust in Febru- 
ary 1993, there have been two cuts in base 
rates, taking them from 6 per cent to 5.25 
per cent British interest rates are bottom- 
ing out. but many experts believe there 
will be another rate cut this year. This 
would make it even harder for income- 
seekers to live off their savings. 

There are any number of products 
designed to meet the need for income, but 
they can be divided into three types of 
investment c ash, bonds and. equities. 

■ Deposits 

We list the highest bank and building soci- 
ety rates weekly in our highest rates table 
(page VDD. The highest returns are on the 
larger deposits. Norwich & Peterborough's 
postal account is paying 7 per cent gross 
on £60.000, while some notice accounts will 
pay similar rates on smaller amounts. 

Rates are low for those with savings 
under £5,000: Halifax, the largest building 
society, Is paying just 3.5 per cent gross on 
£1,000 and 3.75 per cent gross on £2300. 

Postal accounts tend to pay the higher 
rates - but although they are described as 
instant access, it will usually take a week 
before you can get your hands on the cash. 
The trouble with chasing rates is that 
they can change rapkfly.And they will fell 
again if base rates are cut once more. 
Moreover, although most people think of a 
society as "safe’*, because the no minal 
value of its capital remains the same, they 
tend to ignore the effect of inflation on 
that capital. 

This is not as great a problem today, 
with the retail price Index rising at 25 per 
cent in the year to January, but even at 4 
per cent - the top of the government’s 
target range - the value of money halves 
in 16 years. The chart (right) shows how 
significant the effect of inflation can be in 
determining the real rate of return. 

■ Bonds 

These are the traditional investment for 
income-seekers in most countries. At 
Thursday's close, the redemption yield on 
UK government bonds, also known as 
gilts, was 6.67 per cent over five years and 


7.33 per cent over 10 years. Riskier bonds, 
such as those issued by companies and 
some foreign governments, will pay higher 
yields. The drawback with bonds is that 
you run the risk of capital loss if their 
price falls. And. if you buy a gilt for more 
than lace value, you are certain of a loss if 
you hold it until maturity. 

■ Equities 

Over the long term, equities give protec- 
tion against inflation anri offer the poten- 
tial for much higher capital gains Hiaw 
from cash or bonds. But the volatility of 
the markets means you cannot regard 
equities as a straightforward alternative to 
a building society. The present yield on 
the FT-SE-A All-Share index is only 
around 3JS per cent; but by choosing com- 
panies which pay higher dividends, such 
as utilities, you can achieve higher rates. 

Income shares of split-capital invest- 
ment trusts are aimed specifically at 
income-seekers. Instead of issuing just one 
type of ordinary share, split-capital trusts 
issue two or more types; these lay claim to 
different parts of each trust's assets and 
dividends. Income shares receive the 
majority of the trust’s dividends but are at 
the back of the queue for capital gains. At 
present, they have an average yield of 
about 11.6 per cent But they cany the risk 

- in some cases, the certainty - of capital 
loss. 

■ The total return theory 

The most common way to seek an income 
is to look for investments with the highest 
interest rates; the snag is that, usually, the 
highest returns are found on the riskiest 
investments. But those people with large 
portfolios and a firm grip on their finances 
can afford to think about income in a 
different way. By Investing for total return 

- both income and capital growth - they 
can take some of the annual growth as 
income, with the advantage that it will be 
taxed as capital gain. If tie amount taken 
fells wi thin their capital gains tax allow- 
ance of £5300 (£11300 for a married cou- 
ple), there is no CGT to pay. 

R ichard Boyton, of Boyton Finan- 
cial Services, says: “Assume 
that someone has invested 
£10300 in 10 £1,000 shares and. 
after one year, the value has increased to 
£15,000. Now let us assume that he has not 
used his CGT allowance but wishes to 
enjoy Income' of £1,500. He sells one share 
for £1300, of which £1,000 is the original 
capital arid £500 is gain. The £500 would 
not be subject to tax (since it fells within 
his CGT allowance) and so the whole 
£1300 would be tax-free in his hands." 


Robin Angus, director of equities at Nat- 
West Securities, is another enthusiast 
about the total return theory. In the com- 
pany’s latest Investment Trust Annual 
Review, he writes: *7 simply cannot under- 
stand why people chase income through 
buying investment products offering fancy 
yields when, through investing for total 
return and realising some of their capital 
gams, they could satisfy their financial 
needs while getting a higher total return 
and paying less tax into the bargain." 

The danger with turning capital into 
income is that you can overdo it You 
could simply be returning capital to your- 
self in the form of income. For the system 
to work, the investment needs to grow at 
least as much as the amount being taken 
out annually. Furthermore, dealing costs 
will reduce the return. 

There are packaged products making 
use of the idea. Ivory & Stme has an 
investment trust which makes use of the 
annual CGT exemption. The trust sells a 
proportion of an investor’s holding auto- 
matically each year in order to generate 
monthly income. The first £5300 of income 
from these sales is tax-free. The net asset 
value of the trust increased by 163 per 
cent in the six months to its year-end on 
December 31, and the board has decided it 
can afford to increase the annual return 
from 7 to 7.15 per cent from April. 

James Capel's Generator personal equity 
plan, and Newton's Distributor ftmd, are 
unit trusts which allow the investor to 
choose the annual level of income they 
withdraw up to a maximum of g per cent 
(Newton) and 7.5 per cent (Capel). 

Both aim to replace the capital with- 


drawn but cannot guarantee to do. By 
investing through a Pep, the investor does 
not need to worry about CGT or income 
tax but faces initial and annual charges of 
525 per cent and l per cent (Capel) and 6 
per cent and 1.5 per cent (Newton). 

The advantage of these Peps is that, 
theoretically, the investor is in control so 
that, if the stock market falls, he can stop 


taking income in order to minimise capital 
erosion. The danger is that he becomes 
dependent on the income stream. 

The total return theory works in a rising 
market or if capital gain has built up 
untouched over the years. But great care 
is needed not to withdraw too much capi- 
tal, undermining the scope for future 
growth. 


What the 
experts 
say... 

□ PETER SMITH, of financial adviser 
Hill Martin, believes the total return 
theory is suitable only for those with 
a large portfolio. Others could easily 
run the risk of simply eroding their 
capital, especially in a falling market. 

His favourite recommendations for 
income-seekers are the income shares 
of split-capital investment trusts. Exeter 
High Income is a unit trust which invests 
in these and has a yield of about 8.5 per 
cent gross. “You can still take 5-6 per 
cent net from insurance bonds if you 
are a nervons equity investor and 
European bonds are paring 6.5-7 per 
cent gross,” Smith says. 

Smith advises those who still keep 
a large amount of money in the bank 
to transfer it into a building society 
postal account, at least. “There is not 
much wrong with cash at the moment. 

If inflation was high, it would be a 
different matter." 

To those approaching retirement he 
says: “People tell you not to buy an 
annuity at the moment ou the basis that 
interest rates are supposed to shoot up 
again. I just don't believe this will 
happen. You can choose an escalating 
annuity which will guarantee your 
income and pay an increasing amount 
each year." 

□ ROBERT NOBLE WARREN, of 
financial adviser Murray Noble, believes 
that since most funds cannot beat the 
average stock market indices, an index 
fund, which aims simply to track the 
indices is a good idea, particularly since 
charges are lower than on other funds. 

His advice to income-seekers? “Buy 
index funds with low annual charges, 
such as Morgan Grenfell's UK Tracker; 
pay attention to tax-favoured investments 
and tax-saving arrangements so as to 
use all persona) allowances (you can 
save 1 per cent a year by doing so); and 
consider spreading the income risk into 
other European countries such as French 
Eurobonds, yielding 6 per cent or more, 
and Spanish deposits. Fidelity Money 
Funds (Bermuda) Spanish Peseta has 
a yield of over 73 per cent" 

He adds: “We still favonr split-level 
investment trusts if yon really have to 
seek out a high income, at the risk of 
capital. The M&G Dual yields 28.8 per 
cent with capital depredation, while 
New Throgmorton is on 10.4 per cent. 

“We don't expect dividends to increase 
much, so we don't think there is any 
way round taking the gains from the 
portfolio to make up income. So, if you 
have to get over 5 per cent income, you 
are going to have to take some of it from 
capital." 


- -x 

V : 








The benefits of privatisations are well known. Large, well-established and often cash rich companies 
with strong market positions are brought to market by their government owners on attractive terms. 
Subsequently new, commercially driven management delivers further benefit to both profitability and 
share prices. 

The experience of outstanding long term returns in the UK, where the privatisation concept has 
been pioneered, reflects the unique lower risk/higher return profile of privatisation stocks. 

Now, as the UK privatisation era draws to a dose, a new one opens with exciting opportunities not 
only in Europe, but around the world. 


To help you capitalise an this, Guinness 
Flight offers the Global Privatisation PEP which 
invests in the new Guinness Flight Global 
Privatisation Trust. 

GLOBAL PRIVATISATIONS - 
A WORLD OF OPPORTUNITY 

Our new Global Privatisation Trust invests in 
leading industries such as Telecommunications, 
Oil and Gas, Utilities and Financials. Privatisation 
opportunities are arising in these industries 
in Europe, the Asia Pacific region and Latin 
America. 

QUALITY COMPANIES, BETTER THAN 
AVERAGE RETURNS 

Experience tells us that privatised companies 
usually have strong balance sheets, high dividend 
cover and above average dividend growth. 
To ensure successful flotations, governments tend 
to price privatisations attractively and launch 
them into rising markets. 

LOW COST PEP 

The initial charge on the Global Privatisation 
PEP is only 29b*. The annual management fee 
is 1.59b. 

So don't miss this worldwide Opportunity- 
Return the coupon or call 071-522 2111. 


ESTIMATED VALUE OF PROBABLE 
PRIVATISATION ISSUES BY 
REGION OVER THE NEXT FIVE YEARS. 



GUINNESS FLIGHT 


GLOBAL PRIVATISATION PEP 


raffle 25Z3 


ggwf ass; mm mm a® © 


amt rrrrrs 



Newton is an independent investment house with a 
single, simple purpose in Tito: to increase the real wealth 
of our clients. The no. I performance since launch nl the 


Newton Income and General PEPs is evidence of our 
achievement. For more derails of our PEP performance, call 
us. free, on 05IHI 55U IKK) at any time. Or clip the coupon. 



tivvertisr Sen-ices Department. Guinness Flight Global Asset Management Limited, 5 Gtiiufoid Street, London SEI ZNE. 
Tel 07 1 -S 22 2111 . Fa* 071-522 3001. 

Please tend me further detail about the Gutfine* Flight Pm-anution PEP 

7ltV_ ImtkoU — Name — 


To-. Newton Fund Manager? Limited. 7| Queen Victoria Street. ! ondon EC-1V -1DR Please send me details o< the Newton PEP range. 


Name 


Address 


Postcode 


FT54C320 





IWxir aw-** 


1 X M *» WT « I""- * (*■* w WT *' m ‘ *"■' "m*"' ■»' * pianos* * mi mo * I 


Performance above and beyond 


‘Source. Micropal/DaiU Telegraph PEPCuide, figures to 1st Man* 1*™* from launch (Income Fund. General run. 3. Growth Pune, cn an 

ofler-co-tud Mss including gross income reinvested Growth figures for Income PEP over five years. Prevailing ia> levels and rvfieis hatr-L: >.-> change -nd iheir 
Min oepond on .«*jr individual circumstances. The value of uruls and the income from them can go down as well as uD and investors nwy not get bad- Ihe fuD 
amount invested Past performance- «s not necessanlv a guide to the future Issued by Newton Fond Managers Limned, a member oHMRO LALffRO and AUTIF 


l 

5 

i 

i 








rV WEEKEND FT 


FINANCIAL TIMES WEEKEND MARCH 19/MARCH 20 1994 


FINANCE AND THE FAMILY 


The Week Ahead 


. i | i T 



Rusirisj Cheque Account 

Who said 
your business 
can't have free 
banking and earn 

4.00% gross p.a.? 


At Allied Trust Bank you can 
have free banking and earn 
a high interest rate on your 
balance 

We offer your business the first 60 transactions 
of the month absolutely free, with no monthly 
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A 4.00% gross p.a. interest rate is paid 
monthfy on the entire balance, providing your 
minimum balance is no less than £2 001 . 

You have instant access to your money by 
cheque book, standing order and direct debit 

For more information other tdqjhone our 
24 hour answerpbone 071-626 0879 or 
Jayne Stuart on 071-283 91 II between 
9 am and 5 pm Monday to Friday. 

Alternatively complete the coupon on) 

FREEPOST it to us. 

ALLIED TRUST 

= ==s BA N K ===== 


I Inlet ts paid gross to companies, net of basic rale U\ to sole traders and parineirtiips. 
Interest rales may vary. 

. To: Allied Trusl Bank, FREEPOST. London EC4B 4RN. 

Please send me details of the High Interest Business Cheque Account. 


Name of Business. 
Address 


Post code | 

Allied Trust Bank Limited, 97-101 Cannon Street, London EC4N SAH ' 

FT 1901941 


BEST PERFORMING MEDIUM SIZED 
UNIT TRUST GROUP ,*• 
OVER ONE YEAR .**sBk 

5UN04V ,-sS 

'cl:0F.£Pri' 



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OVER ONE YEAR 

These excellent performance figures were calculated on 
9th March and take account of the UK stockmarket's fells over 
recent weeks. Furthermore, we believe that this stockmarket 
weakness makes UK equity invested PEPs better value now. 

For further information about any of our UK equity 
unit trusts and PEPs, GUINNESS FLIGHT 
return the coupon or call 
071-522 2111. 


UK EQUITY UNIT TRUSTS AND PEPS 


TN v 2T3 3SD SSS S2 SS2& 


iffl s rzm izsss asm 


Return Ur Invntnr Services Department. Guinness Flight Global Asset Management Limited, 
5 Gaimfurd Street, Loruton SEI 2NE. Tefc 071-522 21 1 1. Fax: 071-522 300 1. 

Please send me details of your UK equity unit i rusts and UK equity PEPs. 


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I t i—riiwmm zsttM 


6.5% CREDITED DAILY 

CASH DEPOSIT SCHEME FOR PENSION FUNDS 

For details of this scheme for the cash dement of pension funds, 
with money invested by a leading UK insurance company into a 
major UK building society, and paying a variable i merest rate (currently 
b.5 < r nett of all charges) credited daily, with easy access 
(minimmn investment £15,000) please contact: 

POWER ROBBINS 

(■dependent Hnaaetai Advben 

73 Wondtuda Head. Baoh tm a, L ertbee ttcod. Smrqr ICTO 4U1 
Td: «3n *57965 Fas 0373 454417 
AHoftrirrainu 


AU Advertisement 
bookings are accepted 
subject to oor current 
Terms and Conditions, 
copies of which are ' 
available by writing to 

The Advertisement 
Production Director 
The Financial Times, 
One Southwark Bridge 
London SE1 9HEL 
TW: 071 873 3223 
Fax: 071873 3064 


Lucas finds the going tough 


Lucas, the motor and 
aerospace components group, 
is expected on Monday to 
report interim profits of 
between £l5m and £19m. com- 
pared with £5 .2m last time. 
Analysts still hope the Mid- 
lands-based group will make 
more than £80m in the year to 
July, and the skewing of prof- 
its to the second half reflects 
continuing tough trading con- 
ditions - particularly in conti- 
nental Europe. 

Also on Monday, Argos is 
forecast to announce fuJJ-yaar 
pre-tax profits of about «am. 
up from £65. 6m last year before 
the £ 12.7m provision to cover 
closure of the group’s Chester- 
man furniture chain The total 
dividend is expected to be 
raised from 7p to 7.6p. 

On Tuesday Bo water, the 
packaging, printing and coated 
products group, is expected to 
unveil another strong perfor- 
mance. with full-year pre-tax 
profits up about one-third from 
£147.2m to about £196m. The 
total dividend is forecast to 
rise from lL5p to 12J5|>. 

Changes in the US weather 


New Issues 

Fraser 

floats 


House of Fraser, the 
department store chain which 
stretches from Inverness to 
Plymouth, is being floated off 
by its owners the Fayed 
brothers, valued at £4l3.3m. 
unites Neil Buckley. They will 
keep the chain's former flag- 
ship, Harrods. leaving House of 
Fraser with 56 stores trading 
under 17 na mes such as Rinns , 
Rackhams. Dickins & Jones 
and Army & Navy. 

The share price announced 
on Thursday of ISOp was at the 
bottom end of expectations. 
After the group unveiled pre- 
tax profits of £34.5m on sales of 
£72L7m for the year to January 
31, most analysts had been 
forecasting 190p to 200p. valu- 
ing the group at between 
£436m and £460m. 

S.G. Warburg, broker to the 
offer, is thought to have been 
persuaded by the recent vola- 
tility of the stock market to go 
for the lower price. It equates 
to 163 times historic earnings 
and, on a notional dividend of 
5p, gives a gross yield of 3.5 per 
cent But, by setting the price 
at this level, the group has 
largely neutralised investors' 
concerns over the legacy of 
several years of directionless 
management, and over growth 
prospects. The shares look 
attractive and could well go to 
a small premium. 

Three-quarters of the 229.6m 
shares are being placed with 
Institutions, with the rest 
offered to the public. Deadline 
for applications is Marcb 25 
and dealings start on April 6. 

■ Wainbomes this week 
became the latest housebuilder 
to announce terms of its flota- 
tion, unites Andrew Taylor. It 
is seeking to raise 230.5m from 
a placing and offer for sale 
priced at I70p a share and 
valuing the company at £106m. 
The issue follows Beazer 
Homes which, the previous 
week, announced details of its 
flotation plans. These valued 
the company at 2463.4m, with 
shares at 165p. 

Compared with Beazer, 
Wainbomes would seem a little 
expensive on a notional yield 
of 3.1 per cent and p/e of 18.3 
times on forecast earning s of 
9-3p in the year to March 1994. 
The companies, however, are 
very different animals 

Beazer is a proven n ational 
house-builder, producing 
nearly 5,000 homes a year. 
Wainbomes re mains a s mall 
regional builder constructing 

fewer than under 1,000 homes a 
year, although this is expected 
to rise to 1,800 by 1995/96. The 
upside potential, therefore, is 
claimed by Wainhomes to be 
greater than Beazer. 

It has had a solid record dar- 
ing the recession and operating 
margins are at the top end of 
the sector. On that, basis it is 
probably worth supporting. 
The broker is NatWest Wood 
Mackenzie. 

■ Investors get the chance of 
t a king pan in the increasing 
sales of educational equipment 
in the UK following Notting- 
ham Group's announcement 
this week of details of its £13m 
intermediaries offer, writes 
Simon Davies. The company is 
being valued at £81.4m and 
brokers say applications had to 
be scaled back tor the £25m 
pre-placement to institutions. 

The pricing is attractive. At 
155p. the shares are on a 1993 
p/e (before exceptional write- 
offs) of 14.2 and a notional 
yield of 4.45 per cent Goldman 
Sachs and James Capel are 
brokers to the offer, which 
closes on March 24. 


Dorilng Ktadersley 

Share price (pence) 

350 r 



1992 1993 94 

Source FT Qrapttte 

and the prospects for the regu- 
latory climate in the UK win 
both have their impacts on 
Tuesday’s results from Pruden- 
tial. the fmaTirifli services and 
life insurance company. The 
range of analysts’ forecasts is 
£510tn-£S67m in pre-tax profits, 
compared with pretax profits 
of £406m in 1992 - more than 
double the 1991 figure. The 
consensus on the final divi- 
dend is I3.lp. 

Final results on Wednesday 


from, retail group Kingfisher, 
which includes Woolworth. 
Superdrag, Comet and B&Q, as 
well as Darty of France, will be 
watched very closely after the 
group made a disappointing 
trading statement for the 24 
weeks to January 15. Analysts 
downgraded their pre-tax profit 
forecasts then from between 
£300m and £320m to about 
£295m - up from £234m, 
reflecting the impact of the 
Darty acquisition last year. 
Total dividend is forecast at 
143p, after an adjusted HL3p 
last year. 

Peninsular & Oriental Steam 
Navigation Company is expec- 
ted on Thursday to reveal pre- 
tax profits of more than £50Qm 
for 1993, compared with 
£270.4m last year. The figures 
will be inflated by around 
£250m of exceptional profits 
and brokers are forecasting a 
more modest £250 m pretax 
profit from underlying busi- 
ness. Dividend is likely to 
r emain at 3L5p. 

The City is expecting only 
modest growth in profits at 
United Newspapers, publisher 


of the Daily Express, which 
declares Us full-year results on 
Thursday. The recovery in 
advertising has been fragmen- 
tary and United's national 
titles have come under severe 
competitive pressures. Derek 
Terrington, of ffieinwort Ben- 
son. is looking for pretax prof- 
its of £ll5m compared with 
£109 An in 1992. 

Wellcome, which has interim 
results on Thursday, has the 
dubious distinction of having 
been the worst-performing 
FTSE 100 stock of 1993. How 
well it does in 1994 will be 
ipnnpprpri by the fortunes of 
Zovirax, its biggest selling 
drug. Zovirax is now facing its 
first genuine competition, in 


the shape of SmithKUne Bee- 
chain's Famvir. Goldman 
Sachs, the stockbroker, is 
looking for at least £40Qm or 
Zovirax sales in the first half 
and group pre-tax profits of 
EWOm. 

Bedritt & Col man's range of 
household brands is expected 
to make full-year profits - to 
be reported an Thursday - of 
around £280m pre-tax, com- 
pared with £161 .7 m in 1992 - a 
figure depressed substantially 
by £S64m of losses on the sale 
of the US spice business and a 
£9.6m restructuring charge. A 
rise in the dividend of around 8 
or 9 per cent is expected, after 
the interim was increased by 
8.4 per cent. 


PRELIMINARY RESULTS 


Earnings* DMdandC 
par Mn par share 

(pi w 


Abbott Meed Vickers 

Med 

Dec 

4,750 

K72C) 

18.7 

(127) 

105 

(03) 

Attarrco Trust 

InTr 

JanT 

£2153 

(£17.79) 4758 

(45.7) 

475 

(461? 

Art° Wiggins 

PPAP 

Dec 

122100 

(161,100) 

75 

(11^ 

355 

(155 

Astra PsbBtan 

OtE 

Deo( 

2630 L 

(10230 U 

- 

B 

- 

B 

BSM 

Sp&r 

DSC 

1520 

(528 q 

22 

B 


H 

Baynw (Chsies) 

Eng 

Dec 

8518 

(5563) 

271 

C3.11) 1575 

(05) 

Brttah Borneo 

OEx 

Dec 

8597 

(7520) 1953 

(1659) 4.433 (4.433) 

Mferii Mohob 

Tort 

Dec 

1570 

P.100) 

7-39 

(105) 

05 

(25) 

Britton 

PPSP 

Dec 

2730 

P520U 

058 

B 

0.15 

(203) 


Brawn 4 Jaekaon 

Caldcrtwn 

CWafWn 


Otfti Dae 
ReGn Ok 
O rSv Doc 
BdM- Dec 


CZ7BJ 2 2 

16.600 g 
ping sj 


(LIT) I* M 

H * M 

(7,4) 7.7 (7JJ 

9ae» 35 Ail 


arm* a co 

RtGe 

Dec 

22M 

CI50H 

174 

( 12 9 

135 

029 

Oorts Vlyrts 

TW 

Dec 

150300 

(134.709 

145 

(109 

85 

(729 

Cater 

BSC 

Dec 

68.700 

004509 

185 

H 

- 

B 

Gowtrtta Trrriful 

TW 

dec 

-TKjna 

(39509 

282 

pan 

86 

B2) 

Crecttords 

L&H 

Dec 

20200 

(3850Q 1818 

(3455) 

45 

(89 

Dates H 

RMn 

Dec 

63 

M 

06 

M 

02 

(029 

Bevia Service 

SpSr 

Dec 

21.735 

(17519 1348 


1428 

«S25) 

DewswMOup 

Tms 

Dec 

7.930 

(4.759 

172 

004) 

3 

P29 

Delta 

FXFF 

Jan 

53.400 

(56.109 

23.1 

(23.0) 

145 

049 

EFT 

OtFn 

Dec 

2530 

(1^59 

451 


12 

09 

Edrond 

BdCn 

Dec 

1594L 

(1,1 SSL) 

- 

H 

015 

(Oiq 

Eases 

ESS 

Dec 

4500 

(10500 l) 

15 

H 

ai 

(01) 

EngWi China Onys 

Ext n 

Dec 

88,100 

(100209 2045 

<3073 

200 

I20Q 

Esana Hrtrtrn 

Drst 

Dec 

7510 

(1,719 

242 

BA) 

120 (1123 

Frtnqr 

ESS 

Dee 

21500 

(17509 

375 

P Xfl 

115 

002) 


APW 

Abbeycrast 

American Ttuat 

Antrtapaatai - — 

Apptoyanl 

Argos 

Aapen Con arnaitamn na 

AataoBSR 

Aaoi umn a Food* 

Avonldn — , — - ■ 

Afiahbs Metal Products 

Btffi Resource* 

BPP 

BSQlrtamrionir 

BaMtWOen* 

Barr & Waface Arnold Tract . 


Beery S U rq uoat — 

B»«oq « Bateson Enamels . 

Bourne End Properties 

Bournemouth Water 


BnateWe Aagregaten _ 

Bund 

CU Group 

Capital Mueties 

Crtttaa 

CavanMe 

CSntan Card* 

Oydo Petrotawn 

Cr a nia ca r e ...... ...... 

Culver 

Derwent Vahoy 

DeveoMi 

Dawn International - 

Dorttar 

Fact (EW) 

Brad Earth TUes — 


r orwanj Teeftadogy 

Otaa a by 

Graggs 


Hal ftgtaaart n g 
H wi pJa i 
H aywood WHams 
«. 

BA iotama&onai 
^dependent to* 
JUJ 

Jotnon Qaaan 

JuptarTyndrt 

Knfc-Rt 

Lwebert Howarth 
LagiltQmJ 


Me at rods Trust 
Wren* 

Mrror<ha«> 

Huwy Banpuwi tor 

Mchob PN| Vbnto 

OQC 

PwiAUae 

Peek 

Pis air is non 
PranteConoa 


Ssnder ao n Brnri 


Sbnoa Bngtoaettng 


ESS Dae 
E aS Dec 
RaFd Jsi 
SpWn Dec 
Big Dec 
Eng Dec 
ReGn An 
BdMa Dec 

- Dec 
Dot Dec 
hx Dec 
fco Dec 

^jSv Dec 
OtFn Dec 
Dstr Feb 
Test Dec 
Lite Dec 
Hk Dec 
BdMr Dec 
Ram Dec 
inTr dart 
Ea*i Dect 
Ued Jan 
InTr Deer 
R#*i Dec 
OEx Dec 

- Sap 
ESS Dec 
BBC Dec 
OEx Dec 
SpS» Dec 
Eng Dec 
MB' Dec 

- Dec* 
Ued Dec 
Sp9* Dec 
f*&t Dec 
BdMs Dec 
Med Dec 

Oet Dec 
USk Dec 
Phm Dec 
Ton Dec 
EM Dec 


fl«? 05 
D.(E0| 11 j4 
&S7Q S3j0 
(TBS JXQ 225 
(43001 35 

CL36Q mia 

ftazi 

(5500J 302 

poeooi 

(2.7001 7^8 
(3,738 352 
(102X8 114 
(15,100) 8201 

Anq 22.1 

P7.100) 1038 
p ggni 243 
(116,100) 185 
B70U a« 

(W1 

waq 

B35.7) 1154 

pn U - 


H 02S H 

fU} 65 (105) 

paq iso (isJ 8 
(28.1) aia M 

M i-o PA 

ti06) 95 (a64) 

P5G - {1JD» 

(U) 135 (1259 

H * H 
P5SS 15S a 5) 
(105) 825 (7.0) 

95) 75 (75} 

(4M 275 GSJ) 

PM) 75 <45} 

(7561 25 H 
P9L2J 1375 (135) 
(303 136 (125) 
H 05 (02) 

H « M 

P25 27 (225} 

(103 115 (105} 


MghGMtarth Parti. 
Hong Kong Land _ 
Hornby — 


Jwdhw Strategic — 

Writs Kstes _____ 

LrtnSlJotBi) 

Lambert Howarth — 

lAsaao 

Low Oobenmia 

Lex Sendee 

unput 

Lowe (Robert >0 


RESULTS DUE 


Amcmnt 

Sector due 


Wednesday 

Thursday 

Tuesday 

Tuesday 

Tuesday 

Monday 

Wednesday 

Monday 

Tuesday 

Monday 

TTnasday 

Ihmday 

Monday 

Tuaaday 

Thursday 

Wednesday 

Friday 

Thursday 

Tuesday 

Ttusdoy 

Tuesday 

We d ne sda y 

Tuesday 

Wednesctiy 

Frrtay 

Thureday 

Thureday 

Monday 

Thwcd^ 

Friday 

Ttusday 

Thmday 

Wectwedsy 

Tuesday 

Monday 

TIWKtay 

Tuesday 

Thureday 

Wednesday 

Monday 

Monday 

Monday 

Friday 

Uvsday 

Thursday 

Uwaday 

Monday 

Wednesday 

Monday 

Friday 

Tuaaday 

Wednesday 

Thureday 

.Thursday 

Thwaday 

Wednesday 

Wednesday 

Tuesday 


DMdand (p)- 

Last year Thfa yam 
■L Hnal Wit. 


Malays 

Mandarin Oriental . 


Monument 08 8 Gas 

MoroO'Fem* 

Morrison (Wm) SuponnarVota . 


131500 

flSS.709 

2SJ 

H 

- 

H 

| Natiorrt Express 

^-7rar» 

642 

(482) 

as 

(029 


(0-19 

North Sea Assets £NE 







1 P ft O 


iijuu 

OOS09 

" 

" 


H 

( Padeng Senang 

57 

034 U 

“ 

B 

" 

B 

Pane MtotasO SoSw 

7^00 

(4540) 

45 

(72) 

3.4 




18500 

(0489 

107 

&Q 

92 

(89 


13200 
1.170 L 
8500 

00809 

0239 

POOD 

154 

CJB) 

C5) 

H 

04S 

H 

W 

H 

nnrltfMil 

Qurtay Software Produda — 
Metre 

-Lite 

-S09 1 
—Dirt 
_ftop 
-ttae 
-Eng 
-InTr 
Bdte 

2230 

334500 

147500 

(SOS) 

eysq 

(412509 

0CM09 

456 

5.13 

308 

9.71 

(089 

(857) 

(852J 

35 

12.75 

251 

(09 

P9 

B 

0-87) 

Rectal ft fit faren 

Rtohardeoa Wertgarttt 

Rtaar ft Mere Amor Cep ft Inc 
Ruttetnld 


1A10 
195500 
8350 L 
1520 
160500 L 


(2543} 95 

<5750q 145 
(SE.IO0LJ SJ 
(X70q 1050 
(106,700) 1082 
W9U 
(1563 15 

(1540 U - 


M 325 M 
(181) 877 (843 
H - H 

24 PA) 
(6481 185 (115) 


SeepyKids 

Med 

Od 

89 

056 L) 

033 

B 

- 

Spendex 

BCn 

Dec 

5*50 

(4rt69 

325 

(225) 

75 

SpetetofM 

HCr 

NM§ 

481 L 

(2270 L) 

- 

H 

- 

Spteg Ram 

Btee 

Jan 

38400 L 

P1.109 

- 

(39 

01 

Teftara 

Wh 

Dec 

14500 

01509 

13.7 

02-1) 

257 

Tettpee 

Ena 

Dec 

3410 

P289 

828 

(7.19 

. 

Trade Induttty 

tore 

Dae 

3*00 

(4500) 

45 

05L) 

05 

DnSMta 

BMr 

Dee 

20900 

00509 

1X0 

(07) 

55 

Wte 

Tew 

Dec 

0430 

0559 

35 

(29 

125 

UtedOaote 

Fdt*r 

Jm 

110700 

081509 

125 

•WT 

OB 

WSP 

SF6V 

Dec 

282 

(589 

15 

09 

15 

Kauai 

Data 

Dec 

27500 

07509 

11.7 

(89 

34 

Wwmoutfie 

PP8P 

Dec 

15.400 

(12209 

155 

039 

80 

Wttam 

Ditto 

Dec 

1S3200 

057409 

15.7 

089 12.75 

Wtnpey (Oewge) 

mr. 

Dec 

25500 

0115001) 

851 

H 

825 


INTERIM STATEMENTS 


Ccniient 

Atwoods 


ffll Dragon Tneri 
Em po a n Lease 
Eearaat Foods 


Oa&S 

Jen 

8578 

00329 

1.75 

0.79 

- 

Jan 

163 

(78) 

- 

H 

BSC 

Dec 

337 

OJSSZU 

05 

(073 

LSH 

Dec 

1.130 

(9Z7) 

45 

K9 

• 

Sep 

356 

0539 


H 

hTr 

Feb) 

124.17 

B 

- 

B 

LSH 

Dec 

344 L 

(54) 


H 

FdMa 

Nw 

1580 

0.189 

12 

0-9 

InTr 

Febt 

807 

P23 

225 

(29 

Cham 

Dec 

628 L 

(883 L) 

* 

H 

OtFn 

Dec 

48200 

(33509 

20 

<29 

Prsp 

Dec 

133 

(2580 U 


B 

War 

Nor 

13500 

(11509 

245 

cm 

BSC 

Nar 

K50 

1500 

502 

0105) 


Dec 

2.400 

0509 

1.7 

(19 

- 

Dec 

48 

(7f U 

ota 

(0.181 

Eng 

Jm 

30 

09 

- 

H 

BdMa 

Jsi 

87500 

(47509 

4.72 

(355) 

tho coneepodng poriodl 


Boeva Trust 

SW»* Estates 

Sphere I w sasi iii a wl Tnat 

SunABancs 

115 Range 

Thornton Asian Bmg Mkts Uw . 

TTckerlng 

irncy HToamssortai .. 

Try 

UK Safely 

Urdchem 

IMIed HoMapapers 


Watt HarapaMn Water. 

Whttman 

WWan Bowden —w_ 

Wot ata nbofcno RfciX 

Wood (Arthur) ..... 
Worid of Louder 


ft»n d London Propa 

BZW Cons 

BMBa Gtfford Japan __ 

BoMDm 

Btachmcd Hodge 

Britannic Assume 
Brtttah Brittg & Eng App . 
Bwn Stewart nsflas 

Butte MUng 

Centring (Ww) 

CHna & Eastern lav Tst — 

Cooper (Frederic*) 

Dortng Kndereiay 

OowtOngSMBa 

F& C US Btoafler 

FrogmorB Estatee 

(Beeson (MJ) 

Hrtelead (James) 

Lineal 


Tuesday 

Friday 

Tuesday 

Friday 

wednesdqr 

TTamdny 

Friday 

Friday 

Wednesday 

Thusday 

Thwaday 

Wednesday 

Monday 

Friday 

Tuesday 

Wednesday 

Tuesday 

Tuesday 

Thureday 

Wednesday 

Tuesday 

Thwaday 

Tuesday 

Thureday 

Thwaday 

Thureday 

ThMday 

Wednesday 

Friday 

Tuesday 

Tuesday 

Tueeday 


Mau n der s (Jam) 

Premium Trust 

Rtcanto 

7hy Homes 

Town Centos Sees 

Trace Computers 

TrWferf Pwfc Estates . 
UDO 


Thwaday 

Wednesday 

Wadmsday 

Thwaday 

Wednesday 

Wednesday 

Mbnday 

Thwsdny 

Wednesday 

Tuesday 

Tuesday 

Wednesday 

Tuesday 

Wetfieeday 

Friday 

Wednesday 

Werhesday 

Wednesday 

Tuesday 

Wednesday 

Friday 

Wereiosday 

Tuesday 

Thwwey 

Thureday 

Friday 

Thureday 

Friday 

Tuesday 

Monday 

WMmday 

Thwaday 

Wednesday 

Wednesday 

Morxfey 

Wednesday 

Tuesday 

Monday 

Tuesday 

Wednesday 


35 

05 

154 f 
22 ■ 
75 
15 
J5» 


wto per thaw. * Figwee lor nhe nxrnho. 2 Rguas far 3 morthe. t Irish penw end pave. 4 US 
defers and arts 4 GartfrEwnsi nsfio. § Cnnrtatttros sis fcr 78 MMfcs. 

RKHTS ISSUES 

DCS a to ittse £1 55m ria a 1 tx 3 rt S5p rights issua. 

Heton s to rsss R82m via a 4 lor 7 at 56p rt^ts kasue. 
rtremon is to mbe M83n n a 2 fcr 11 at asp &ts hsus. 

Staton Engnearing d to arte ESOm ria a rightt issue. 

OFFERS FOR SALE, PLACtMGS & WTKOPUCTKWS 

Cota MmaBomi a to rase ElSn vta 8s lotHbn. 

Hsmtag Rotwri) b offeirg Btm shsas ki Cental 9Hppi>9 Cw*es rt 23qp. 

BRT &« Group Is oora^ to terraria* via a pfachg. 

IMeys Is nrmg to the maria* vta a pacing. 

Harfrtm is to ratae up to £tSm vb a ten issue. 

Otari Moiaciriar Is to rrisa £l0m via Us totefoa 
A^iy Etetna b to ok Cl87m ria a piactog. 

WsWromev is ta rase C415m v4 a pbetog and Oder of stars d 170p. 

WuMii/nti b a rabe Cl 15m via tb fa taliuiL 
Wlsaman (Robert) Drtrfss a to atae £l$-1fkn vfa a plactag. 


DMdwtos « ahown net pan per share end are aquatod tor any htorvwlng scrip Issue. 
Repots and acec»nia we not normaBy salable wdB about 6 weeks after te board meeting to 
■toptwe prefinWutiy reeuto. R 3rd Ouartsr tgurea * 1st Quarter Agues. 



TAKE-OVER BIDS AND MERGERS 



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tact pH 

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bdm 

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W 1 

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stae - 

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bid 

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adder 

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AngBn Tderim] 

63755 

660 

484 

292.0 

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Europe Mtrra 


602 

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Buriritaa 


Freeman } 


242 

232 

220 

17JS7 

ShoffloW ML 


In Shops t 


116 

114 

83 

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LWT ? 


786§§ 

739 

585 

813.11 

Qranada 


Megeftan bids 


183 

177 

173 

46.82 

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ftwynx 


23.65 

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ShrMnhrSt 


Rojoct Shop 


2Z.4 

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Westland 


299- 

325 

305 

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1 





I f you do not want to pay value 
added tax on fuel for the next year 
or two, you need to move quickly. 
By now. most people know that if 
they have spare cash, they can use it to 
pay in advance for gas, electricity, oil or 
coal supplies, so avoiding VAT of 8 per 
cent from next month and 17.5 per cent 
from April 19%. 

This is because VAT is charged at the 
rate which applies on the date of invoic- 
ing or the date of payment, whichever 
is the earlier. If you pay before April l, 
the rate is zero, so no VAT need be 
paid. But the utility and (Uel companies 
need time to process cheques, so do not 
leave it until the afternoon of Thurs- 
day, March 31. To be safe, your pay- 
ment should reach the relevant com- 
pany within the next week. 

Some electricity companies have been 
sending out blank bills to make it easy 
Tor customers to pre-pay as much as 
they like. If yours is not one of them, all 
you need to do is send a cheque with a 
covering note giving your name, 
address and electricity or gas account 
□umber. You should make clear that 
the money is to be treated as a pre-pay- 
ment for future supplies. 

If there is a chance you could move 
house before the pre-payment has r un 
out, check that the power company 
would be willing to refund the balance. 

A few eager customers are reported to 
have paid for more than 10 years' worth 
of fuel in advance. But have they 
thought through the implications? The 
two questions you should ask are: 

■ How much money will I save by pay- 
ing in advance? 

■ How much will I lose by not keeping 
the money in. say, a building society 
and earning interest on it? 

The further in advance you pay, the 
longer the money could have been earn- 
ing interest and the smaller the savings 
become. But current interest rates are 
low. Many building society accounts 
pay only 3 or 4 per cent The better ones 
pay perhaps 6 or 7 per cent on larger 
amounts. Since this is taxable for most 
people, the actual interest received is 25 
or 40 per cent less. 

In simple terms, this means that a 
saving erf 8 per cent VAT on a year's 
worth of fuel is bound to be worth more 
in cash terms than the interest from 
keeping the same amount on deposit at 
present interest rates. 

When VAT at 17.5 per cent arrives 
from April 1995, the potential savings 
will be much greater but, to avoid the 
tax altogether, pre-payment would have 
to be made before April 1 1994. Thus, 
more than a year's interest would be 
lost. This makes it more complicated to 
work out the advantages of paying in 
advance. 

Accountant Stoy Hayward has taken 
the example of a family with fuel bills 
of £1.300 a year, and calculated what 
rate of interest it would need to be 
earning on its savings, tax-free, to out- 
weigh the advantages of paying in 
advance for the next eight quarters. 

The firm has taken into account the 
likely seasonal fluctuations in fuel bills 



Dodge that VAT 

But move fast to pre-pay your fuel bills, says Bethan Hutton 


- higher accounts can be expected in 
February and May than August and 
November. 

The results show that the family 
would need to be earning 19.2 per cent 
tax-free on its savings for tt not to be 
worth paying the second quarterly bill 
in advance. But by the eighth quarter, 
in February 1996, this has dropped to 
as per cent and the figure would con- 
tinue to decline after that. 

This is only an example, of course, 
and the equivalent figures in your case 
will vary, depending on such factors as 
your fuel consumption and timing of 
bills. But the general conclusion is that, 
although 1996 interest rates are an 
unknown factor, it is unlikely to be 
worth paying bills much more than two 
years in advance. 

If you cannot afford to pay more than 
one year's bills in advance this month, 
you will have a second chance to make 
savings in March 1995, before the 


TYPICAL SAVING ON AM ANNUAL £1,300 FUEL BOX 

Assumed doc dote MSB VAT tnutaw* at Safa biM 


at (Hi Hi 

Gnttaafal 

sand 

54% conpaunrt 

IWP1HM* 

May 15 1994 

455 

12.13 

(4.10) 

8.03 

August 15 1994 

130 

10X0 

(2.92) 

7.48 

November 15 1994 

260 

20.80 

(9.30) 

11.44 

February 15 1995 

455 

36.40 

(22 .52) 

13.88 

May 15 1995 

455 

50.80 

(28.89) 

21.91 

August 15 1995 

130 

22.75 

(10.10) 

12.65 

November 15 19S5 

260 

45.50 

(23.90) 

21.60 

February 15 1996 

455 

70.62 

(48.30) 

31.32 

Total 

2,600 

278.40 

(150.09) 

12831 


Scurxx: S*# llaywant CakUtoa g cV es t mu ad imt gain Oasad an maml fuel MU d P J9Q0 


higher VAT rate comes into force. The 
difference between 8 and 17.5 per cent 
means that it should still be worth mak- 
ing advance payments at the lower rate 
- unless interest levels have shot up by 
then. 

Meanwhile, there is good news for 
council tenants whose homes are in a 
district heating scheme where fuel is 


included as part of the rent and there 
are no separate meters. The govern- 
ment has decided it cannot apply VAT 
to such schemes as councils are VAT- 
exempt and it is not possible to work 
out the liahflfttes of individual tenants. 
So. members of such schemes will be 
able to avoid the tax without even try- 
ing. 


Revenue ban casts 


doubt on annuity 

Investors face problems, reports Gillian O'Connor 


O ne of last year's 
most innovative 
annuity products 
was taken off the 
market in a hurry this week 
because of an Inland Revenue 
ban. "Managed" or “flexible" 
annuities were designed with 
relatively affluent customers in 
min d and allowed them to do 
two things. 

First, they could exercise 
considerably more control over 
the investments on which their 
pension depended, and on the 
amount of income they drew 
each year. Second, if they 
wanted to buy a conventional 
annuity, providing a predeter- 
mined annual income, they 
could do so at a time of their 
own choosing when they 
thought they would get favour- 
able terms. 

The latter point is particu- 
larly pertinent. Falling interest 
rates have meant that many 
new pensioners taking out a 
conventional annuity are get- 
ting a considerably lower 
annual Income than they 
would have a couple of years 
ago. The only company to have 
launched a managed annuity 
scheme is Equitable Life. But 
Provident i-ife had a similar 
annuity ready to go and sev- 
eral other life insurance com- 
panies planned to join the fray. 
It is not yet clear if the insur- 
ance industry will be able to 
adjust the scheme in a way 
that gets Revenue approval. 

Equitable Life is determined 
to try. It stopped selling new 
flexible annuities this week 
but has written to the hun- 
dreds of people who have 
bought one. In the letter, it 
says it does not agree with the 
Revenue and will contest its 
decision. It will continue to 
pay out the annuity instal- 
ments due for the timp being. 

These customers obviously 
are going to have a fraught 
period ahead as they wait to 
discover if their contracts are 
valid. Other people with a 
problem to sort out in a hurry 
are those due to retire in the 
very near future and planning 
to take out a flexible annuity. 

Everyone with a personal 
pension, and all members of 


LATEST ANNUITY RATES 

Compulsory purchase level annuity 

Male age 55 

Annuity 

Female age 50 

Annuity 

Months movement +3.8% 

Months movement +5.1% 

Royal Life 

0,180.85 

Royal Life 

£8223.76 

Sun Life of Canada 

£9,064.21 

Sim Life of Canada 

C7.991.73 

London 6 Manchest 

£835096 

London & Manchester 

£7,971.00 

Male 60 

Annuity 

Female 80 

Annuity 

Months movement +1.9% 

Months movement +42% 

Royal Life 

£10.04864 

Royal Life 

£9248.57 

Sun Life of Canada 

£9,933.34 

Sun Ufa of Canada 

C8.962.50 

RNPFN 

£9.85096 

RNPFN 

£8.877.84 

Male age 70 

Annuity 

Female age 70 

Annuity 

Months movement +1.4% 

Months movement +0.6% 

Royal Lifel 

£13202.80 

Royal Life 

£11,532.82 

RNPFN 

Cl 3.392-24 

RNPFN 

E11.46l.32 

Canada Ue 

£12.894.12 

Canada Life 

£11.060.76 


Joint life - 100% spouse's benefit 


Male 60/Famate 57 

Annuity 

Female 63/Male 65 

Annuity 

Months movement +4.7% 

Months movement +4.2% 

Royal Ue 

£8261.06 

Royal Life 

£8.994.78 

Sun Life of Canada 

£8.122.17 

Stm Life of Canada 

C8.718.01 

London & Manchaste 

£8.101.92 

London & Manchester 

£8.65896 


AM payments are mono* ki manta Hgurea sauna a pwetea priem of CUM. 000 and are sftmwi 
pros*. Adn at of Mad) 7ft RHPFN armuUaa mm n»M*i ortr re those m trm nunung and oflwrf 
prefect tro Source Tho Amity Suw Ltnkfd 


company pension schemes 
based on money purchase 
(rather than final salary), have 
to use most of the lump sum 
produced by their pension plan 
to buy an annuity promptly 
when they actually retire. So, 
even if the insurance compa- 
nies and the Revenue do even- 
tually compromise on a modi- 
fied version of the flexible 
annuity scheme, some 
would-be customers may be 
unable to waff. 

So, what are the options for 
people needing to choose a 
retirement plan now? Until the 
fate of managed annuities is 
resolved, their basic choice lies 
between a conventional annu- 
ity and a phased annuity. 

The standard conventional 
annuity involves a once-and- 
for-aH swap of your lump sum 
for an agreed annual income 
for the rest of your life. Usu- 
ally, this is fixed In money 
terms. Some degree of infla- 
tion-proofing might be built in, 
but only at the cost of a lower 
income to start with. 

The level of income is fixed 
by reference to gflt yields at 
the tiwia you buy the annuity, 
your sex, and how long you are 
likely to live. A variant on this 
prototype allows you to take 


on some stock market risk by- 
linking the income to a stock 
market-based product such as 
a with-profits or unit-linked 
fund. But most people are 
suited better by annuities 
which provide a guaranteed 
income. 

Phased annuities and 
schemes offering "staggered 
vesting" (even more complex 
and costly) work by dividing 
your pension fund into several 
discrete chunks and allowing 
you to cash these in for an 
annuity when you choose. This 
goes a long way towards deal- 
ing with the timing problem. 
But it is a realistic option only 
for people wealthy enough to 
be able to afford to wait, or 
those who can retire gradually 
from paid employment 

Other conditions, such as 
whether and when you can 
take part of your pension in a 
tax-free cash sum, and what 
the benefits for partners are, 
also vary considerably. Pen- 
sion planning is an area where 
specialist advice is probably 
essential- 

Possible sources are The 
Annuity Bureau (071-820 4090); 
Annuity Direct (071-375 1175); 
and Lexis Pension Consultants 
(071-374 4448). 


A Martin Currie PEP 
can’t promise you the earth. 
Just the best parts of it. 



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Please send me further delays of Hi 
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Kanv 


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The surprising thing 
about our Portfolio Service 
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But how Iitde you have to. 

There are certain things you'd expect, when you 
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A commitment to service. The highest levels of 
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What's less expected, however, is how easy it a 
to benefit from this expertise. 

With an initial sum of just £10,000 you can take 
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mu • n nut nr: --- l tlK J fimJ* in the luture Market and currency novm-itfs nuy cause I be value uf units, and any incunr derived Port them, la fluctuate ami 
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EstaM rdied \tfH 

A HISTORY OF FORWARD THINKING 

The value of Investments and die income from them may fall at well as rue and die investor may nr receiver the full amount of capital invested 
Courts & Co is a Member ot IMHO. Rcgd. office, 15 LumbmdSi. London EC3V9AU. 


/ 

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FINANCIAL TIMES WEEKEND MARCH 


FINANCE AND THE FAMILY 


F ew independent 
financial advisers 
have been more 
outspoken in their 
views on the com- 
mission system than Tony 
Shepherd, founder oF Kent- 
based Shepherd Associates. 
Indeed, his criticisms became 
headline news four years ago. 
He marked his election as 
chairman of the Institute of 
Financial Pl annin g with a 
speech that spelt out his vision 
of a fee-based financial plan- 
ning profession that was inde- 
pendent of the need to sell any- 
thing except advice. 

The tied agents in his audi- 
ence walked out and the 1FP 
lost half its members. But 
many who are active in it 
today cite the speech as a 
watershed. It was after this, 
they say, that the IFF began to 
put down roots as the recog- 
nised professional body for 
qualified financial planners. 

Shepherd has been in the 
financial services industry 
since he left the navy more 
than 20 years ago and. “in des- 
peration," accepted a job from 
Abbey Life. “I was so naive I 
didn’t even understand that 
they weren't going to pay me," 
he says. 

A turbulent five years later, 
he had established his own 
insurance broking firm on the 
Isle of Skye, and was already 
vocal about the need for the 
life assurance industry to 
adopt a system of level com- 
missions to combat the prob- 
lem of mis -sellin g. 

In 1986, Shepherd was 
approached by accountant 
Ernst & Whinney. A number of 
his clients were chartered 
accountants and E&W wanted 
to use Shepherd Associates as 
a fulcrum for a new financial 
pl anning department, under 
his control. For Shepherd, the 
offer was a turning point “The 
big attraction was that 1 could 
get away from commissions 
overnight,” he says. 

But the move taught Shep- 
herd that by no means all con- 
sumers of financial services 
shared his enthusiasm for a 
fee-based 1FA business. He lost 
90 per cent of his existing cli- 
ents, and believes this was 
largely because of the change 
in business terms. 

By the time Ernst & Whin- 
ney merged with Arthur 
Young in 1989, Shepherd had 
established a pensions consul- 
tancy and a multi-disciplined 
finan c ial p lanning team. But 
the merger produced a dash of 
cultures and Shepherd decided 
to resurrect his own firm, this 
time basing himself in a village 



Haow of financial adviaac 

dffidoi r 

\ * m . 

1 i : . < • ■ . -V • 

Date was estabSsbad: 

^ Begpijdarr-^; .'/;// 
Funds under management 

Number of offices 


Shepherd Associates 

IjjperHBSteit'-': 
Smstsd. Ashtons,,. 
KantTPCS'SJT 

September 1990 

FMSRA - ■’.* 

£l0m 

76 - 

One 


i * ...... 




M btauu m to roaTnamt frea ut fie d- ' . . Btacttvety S 50 JQD — 



Comprehensive financial ptanrtng; 
huflv dual pensions managemen t 


•v^ ■ 


r • 


r r r 


£95 an hour 

r r f 


r 


Voice of reason 

Shepherd Associates: 8th in a series on fee-based advisers 


high on the Kentish downs. He 
was joined by Andrew Teas- 
dale. a colleague from Ernst & 
Whiimey who had developed 
an investment planning system 
that concentrated on risk anal- 
ysis. 

“The primary thing is to get 
the asset allocation right,” 
says Teasdale. “No client is 
exposed to short-term stock 
market risk. The most danger- 
ous thing anyone can say is 
that equities are a long-term 
investment and that you will 
get your money back eventu- 
ally." 

Shepherd explains: “What 
our clients get is not portfolio 

management : it 25 a finan c ial 

plan concentrating on invest- 
ment. usually for people who 
need to live off their capital. 
And we apply exactly the same 
principles to pensions. Every- 
thing Is driven by clients' 
objectives." 

Clients appear to like the 
approach. “We haven't had to 
look for business," says Shep- 
herd. “The problem has been 
coping with it We specialise in 
retirement p lanning , it wasn’t 
our intention; it just worked 
out that way. I don’t say we 
wouldn't take on a 30-year old. 
but the people we are inter- 
ested in are people approach- 
ing and at retirement age. So. 
we are rather different among 
financial planners. We concen- 


trate on ppnsinns and invest- 
ment We look at clients' estate 
planning and their insurance 
needs, but our new business on 
life policies averages about one 
a month." 

Shepherd sees all new cli- 
ents. "I ask what their objec- 
tives are on retirement - for 
some reason, all solicitors tend 
to want to spend £20,000 on a 
camper van - and what assets 
they have to meet these objec- 
tives. Looking at that is the big 
exercise. It is usually four 
days' work on average, at a 
cost of around £2.000. But 
retirement is the major chang e 
we make in our life and it is 
worth doing properly." 

Shepherd charges clients £95 
an hour for time-based work 
(an estimate will be agreed in 
advance), while the annual 
managempnt fee for asset man- 
agement is percentage-based. 
There is no fee for initial con- 
sultations. 

The core of any financial 
plan produced by the firm will 
be the investment dispositions. 
Shepherd says: “Andrew looks 
at the risk planning, the estate 
planning and making available 
money when it is needed. The 
same principle is involved with 
a 30-year-old looking for school 
fees.” 

Many clients will need to dip 
into capital. Teasdale says the 
firm’s Plato portfolio planning 


system, which it has developed 
and which covers more than 
2,500 ftmds, has a definition of 
risk “that concerns itself with 
the effect of inflation, stock 
markets, and on the ability of 
the clients’ assets to support 
their needs over their life- 
time.” At present, 25 per cent 
of the UK exposure is in index- 
linked gilts. 

Shepherd Associates does 
not touch execution-only work 
and the investment em phasis 
is on uni t trusts and invest- 
ment trusts, never on a direct 
exposure to equities. Turnover 
on portfolios is low. Shepherd 
says: “It costs money to move 
investments and that eats into 
performance. We have yet to 
be convinced that active man- 
agement is effective." 

Shepherd spent time polish- 
ing his French when he left 
Ernst & Young, and he fore- 
sees an expansion of his busi- 
ness among UK residents who 
have retired across the Chan- 
nel. But he is sceptical about 
the benefits of runaway 
growth. “I am suspicious of 
any fee-based practice that is 
making money quickly,” he 
says. “I think financial plan- 
ning is a boutique business. 
And one lesson I have learnt is 
that it is done far better by 
small firms than by big ones.” 

Joanna Slaughter 


CGT : what to do about 


In this , the third of four articles 
on capital gains tax, Richard 
Chant and Alan Sugden deal 
with the rules for securities 
acquired before April 6 1982 , 
and how capital changes in a 
company affect shareholders 


A s well as the 
“new holding 
pool" for a com- 
pany's shares 
acquired on or 
after April 6 1982, there is also 
a second pool, known as the 
“1962 holding pool," for those 
acquired between April 7 1965 
and April 5 1982. 

Shares acquired on or before 
April 6 19© are kept separately 
irnlaas the investor makes an 
election to include any quoted 
shares acquired on or before 
that fate in a 1982 holding. 

This election, called the 
“1965 election," must be made 
to your local inspector of taxes 
within two years of the end of 
the tax year in which the first 
disposal was made after April 5 
1985. Once made, it cannot be 
withdrawn. 

If you dispose of shares 
which you acquired before 
April 1 1982, their cost is taken 
at their market value at March 
31 1982 and is indexed for the 
increase in the retail price 
index (BPI) between March 
1982 and the date of disposal. 

■ Special roles 

There are special rules to 
ensure: 

L That the RPI adjustment is 
calculated on the actual cost, if 
this is to your advantage. 

2. That the gain or loss since 
1982 is not greater than the 
gain or loss over the whole 
period you have owned the 
asset (See Tahle l fix: exam- 
ples of calculations under the 
special rules). 

You can elect for these spe- 
cial rules not to apply, but, if 
you do make thiB election. 
called the “1382 election.” there 
is no need to calculate the gain 
or loss over the whole period of 
ownership. 

The 1982 election should be 
made wi thin two years of the 
end erf the tax yep in which 
the first relevant disposal of an 
asset acquired before April 1 
1982 is made on, or after, April 



6 1988. (1988/88 was the first tax 
year for which this election 
could be made). Once made, 
the election cannot be with- 
drawn. Normally, too, it will 
apply to all assets which you 
owned on March 31 1982. 

■ Where to find March 31 
1982 market values 

Helpful companies like Boots, 
BP, ICI and RTZ give the 
March 31 1982 market value of 
ea ch class of share issued in 
their annual report and 
accounts. Usually, this can be 
found towards the back of the 
report under the heading 
“Information for Sharehold- 
ers." 

Where this information is 
not included, you can write to 
the company secretary - which 
might encourage it to include 
the data in future years - or 
ask your stockbroker or tax 
inspector. 

Make sure you get an 
up-to-date market value as ft 
can change (eg, the March 31 
1982 market value per share 
will be halved by a one-for-one 
scrip issue. 

■ Matching disposals with 
the acquisition of securities 
Matching applies where you 
are considering securities of 
the same class in the same 
company. Disposals are 
matched to the investor’s hold- 
ing in a company in the follow- 
ing sequence: 

1_ With shares acquired on 
the gamp day as the disposal. 


TABLE 1 . SPECIAL RULES FOR skah» 
/imnmen RF.FQRE AJWUL 1 1982 

Whie tea bn«*or ^ ** mad. me 1982 «te*o"£rro 

the ctfedadon of a chombto nfn of tow on ^ dsposaioi ^ 

o&rtf cost 

Example A - Chargeable gain 

March 1982 
value 

Original 

cost 

Net proceeds of sale - Nov 93 

Less: Cost Apr 1972 

Market value Mar 31 1982 

£ 29.000 

( 8 . 000 ) 

£ 29,000 

( 10 , 000 ) 

Less indexation on higher of cost 
or Mar 31 82 value: £ 10,00 0 x 0.782 

21.000 

( 7 , 820 ) 

19.000 

( 7 , 820 ) 

13,180 

11.180 

The lower gain of £ 11,180 is chargeable. 



Example B - Allowable loss 

March 1982 
va hie 

Ongtina/ 

cost 

Net proceeds of sale - Nov 93 

Less: Cost Apr 1972 

Market value Mar 31 1982 

5,000 

( 8 , 000 ) 

5,000 

( 10 , 000 ) 

Lass indexation on higher of cost 
or Mar 31 82 value: £ 10,000 x 0.782 

( 3 , 000 ) 

( 7 , 820 ) 

( 5 . 00 Q) 

( 7 , 820 ) 

( 10 . 820 ) 

The lower loss of £ 10,820 would t>e attowable. 

( 12 . 820 ) 

Note: In hfa Novcmbor 1993 Budget Oxs chanccMOr proposed lo restrict rxtexacqn w 
prowatt tt creating or taemotag ■ to» on dapaaata matte on or alter Now 30 1993 . 
LagfetaHon on (Ns is fncfudetJ In if» Bnanca BB now going through pnroament 

The affect on Example a. V dtsposd had taken place on or after November 30 1993 . 
vKXid be to restrict the loss to G 3 A 00 . 


2. With shares acquired 
within the previous nine days. 

3. With shares in the new 
holding (the pool acquired 
from April 6 1982 onwards). 

4. With shares in the 1982 
holding (those acquired 
between April 7 1965 and April 
51982; and quoted shares 
acquired on or before April 6 
1965 if the 1965 election has 
been made). 

5. With shares acquired on or 
before April 6 1965. if the 1965 
election has not been made. 
The matching is done on a last 
in. first out basis. 

■ Indexation 

In the sequence above: 

1 and 2. No indexation. 

3. For shares in the new 
ho ldin g , indexation r uns from 
the month in which they were 
acquired. 

4 and 5. Indexation will be 
based on the market value of 
the shares at March 31 1982. 
Or, if you have not made the 
1982 election, the special rules 
described above (and illus- 
trated in Table l) will apply to 
shares acquired on or before 
March 31 1982. 


See Table 2 (on page VII) for 
an example of matching from 
the portfolio of an elderly 
widow who obviously believed 
in the slogan “You can be sure 
of Shell." But then, with a 
weak oil price early in the 
1390s, she decided to dispose of 
her holding. 

She spread the disposal over 
three tax years so that, 
together with her other trans- 
actions, her gain in each of 
those years did not exceed the 
annual CGT exemption. 

■ Capital changes 
In last week's article. Table 4 
showed an example involving 
States, the Scottish-based hotel 
group. 

This included the treatment 
of a scrip issue, and a rights 
Issue where the shareholder 
took up his entitlement. 

To recap: States ‘s two-for-one 
scrip issue simply trebled the 
number of shares held and. of 
course, did not alter the overall 
cost of the holding. 

In the rights issue, the 
shares taken up were simply 

■ Continued page VH 


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FINANCIAL TIMES WEEKEND MARCH (9/MARCH 20 1994 


FINANCE AND THE FAMILY 


those pre-1982 shares 


TABLE 2, MATCHIHG SALES TO PURCHASES 


TABLE 3. RIGHTS ISSUE, SHARES NOT TAKEN UP 


Worths Year 

Shams 

Transaction 

caste 

Proceeds £ 

Sep 1964 

200 

Bought 

402 

. 

Apr 1970 

300 

Bought 

1,429 

_ 

Aug 1973 

250 

Bought 

789 

- 


750 


2.620 


Jun 1979 

750 

1 for 1 scrip 


_ 

Dec 1982 

600 

Bought 

2,552 

- 


2.100 


5.172 


Dec 1988 

4.200 

2 for 1 scrip 


- 


6.300 


5.172 


Feb 1991 

1,000 

Sold 


4.470 

Jan 1992 

2.000 

Sold 

_ 

9,314 

Mar 1993 

1.600 

Sold 

_ 

11,342 

Dec 1993 

1,700 

Sold 

“ 

9,529 


6,300 


A company makes a t for 3 rights Issue at 60p. 

Before the rights issue an investor hold 3,000 shares, which were 
standing at I02p each on me last day ot dealings cum rights. He is. 
therefore, entitled to subscribe for 1,000 shares. 

He decides to sefl his rights "nS paid" - te. before the date on which 
payment for new shares fate due. (In practice he has to sell two or three 
working days before the subscription date, to give the purchaser of his 
«1 paid Shares time to make the subscription payment the last day of 
dealings nil paid” is given in the rights issue circular to shareholders). 
The investor sells his rights an the Aral day of dealing nil paid for 20p 
each, rearsing £196 net of selling expenses. The price of the ofcj shares 
has eased to S9p ex-rights. 

Is foe safe deemed to be a eSsposat ? 

Lei the proceeds of the sale of his rights = A 

and the value of his holding of aid shares, ex-rights = B 


The proportion sold = 


£196 


= 6.60% 


Let us see how the purchases and sales are matched. The elderly 
lady did not make a 1965 election, so shares acquired on or before 6 
April 1965 are kept separately. 


B £2,970 

So, as this is greater than 5%, the sale is deemed to be a dsposal. 
Calculating the capital gain 

The cost of the original holding, indexed to the month in which the ni 
paid shares were sold, was £2^200. 


Matching - No 1965 Election 


Sales 


The calculation is 


£196 


Feb 91 Jan 92 Mar 93 Dec 93 


A + B 


£196 + £2,970 


= 6.19% 


Purchases 

Dec 82 600 = 1.800 xc* 
Aug 73 250 = 1,500 xc J 
) 


1,000 800 


A = 6.19% of £24100 = £136 Capita! gain = £196 - £136 = £80 
The indexed cost of the residual holding, 3,000 shares xr, is 
B = 93.61% of £24200 = £2.064. 


3.300 


1,200 1,600 500 


Apr 70 300 = 1,800 xc) 

Sep 64 200 = 1,200 xc - 1.200 

• xc = ex-capitaHsaSon, i.e. after the scrip issued 


TABLE 4. DEMERGER OF ZENECA FROM ICI 


■ From page VI 

treated as a purchase cf addi- 
tional shares because all the 
shares had been acquired on or 
after April 6 1982. 

Where some of the holding 
was acquired before that date, 
the treatment is slightly more 
complicated. 

■ Rights issue on shares 
acquired before April 6 1982 
Where a rights issue made 
after April 5 1982 concerns a 
holding, part or all of which 
was acquired before April 
61.982, any shares received in 
respect of the 1982 balding are 
treated as an increase in that 
holding. 

Similarly, if the 1965 election 
(to include shares acquired on 
or before 6 April 1965 in the 
1982 holding) was not made, 
any shares received in respect 
of shares acquired on or before 
April 6 1965 are treated as an 
increase in those earlier hold- 
ings. 

■ Rights issue - shares 
not taken up 

Shareholders who do not want 
to take up their entitlement in 
n rights issue can do one of 


two things. These are: 

L Sell the new shares “nil 
paid," renouncing their entitle- 
ment to them by completing 
the relevant section on the 
back of the provisional allot- 
ment letter (PAL, in back 
office jargon). 

2. Let their entitlement 
lapse. In this case, the issuing 
house will sell all the shares of 
the entitlements that have 
lapsed “for the benefit of enti- 
tled shareholders” - providing 
they can be sold at a premium. 

The shares are sold rally 
paid and the net proceeds (the 
premium obtained over the 
subscription price, net of sell- 
ing costs) are distributed to the 
entitled shareholders pro rata. 

Whichever the shareholder 
does, the treatment for CGT 
purposes is the same: it 
depends on whether the pro- 
ceeds of the sale of the share- 
holder’s rights are 5 per cent or 
less of the value of the under- 
lying shareholding (the shares 
originally held), or more than 5 
per cent 

If the former, the proceeds of 
the sale are deducted from the 
cost of the underlying holding. 


For CGT indexation purposes, the new shareholding (Zeneca) is treated 
as having been acquired at the same time as the original holding (ICI). 

For cost apportionment, the A/(A + B) formula is used to determine the 
proportion of the cost of the original holding of ICt which is attributed to 
the new holding in Zeneca. 

A = First Market Value of new shareholding 
8 ■= First Market Value of old shareholding 
where Fust Market Value on the first day on which ICI and Zeneca were 
dealt in separately is the tower ot 

1 . the bid price of the security plus one quarter of the spread (the 
difference between the bid price and the offer price). Known 
coUoquialy as “Quarter up". 

Z the figure half way between the highest and the lowest prises of 
bargains recorded that day in the Stock Exchange’s Daily Official List 

These prices were ICI 631.75p; Zeneca 625.75p 


So cost apportioned to Zeneca = 


625.75p 


625. 7 5p + 
631.75p 


= 49.76% 


Next week . . . 


The last article cf this series 
deals with how to minimise 
your CGT liability, including 
bed and breakfast: transfers 
between husband and wife; 
taking advantage of separate 
annual CGT exemptions and 
your partner's lower mar- 
ginal rate of tax; how to 
transfer securities between 
husband and wife; and gifts 
and transfers between “con- 
nected" persons. 

Readers' Questions: Answers 
to the most popular general 
questions arising from the 


series will be published after 
the final article has appeared. 
Please mark your envelope 
“CGT series question." We 
cannot provide detailed 
advice about your own CGT 
returns. 

The authors: Richard Chant is 
a tax partner in the Bristol 
firm of chartered accountants 
Solomon Hare. Alan Sugden 
is the arauthor of Interpreting 
Company Reports & Accounts; 
Wood head -Faulkner, 4th 
(Revised) edition, pit) 
£19.95. 


indexed to the month of sale. If 
the latter, the sale is deemed to 
be a disposal and a taxable 
gain arises from it. 

Table 3 shows how the gain 
and the value of the underly- 
ing shareholding is calculated 
when the proceeds of the sale 
of rights exceeds 5 per cent of 
the value of the underlying 
holding ex-rights. 

■ Takeovers and mergers 
The shareholder of the 
acquired company can either 
accept new shares in the 
acquiring company in 
exchange for his holding in the 
acquired company (accepting 
"paper." in City jargon), or can 
accept the cash alternative if 
one is offered. 

If new shares are accepted, 
the cost of them is taken as the 
cost of the investor's holding 
in the acquired company. IT the 
cash alternative is accepted, it 
is deemed to be a disposal and 
normal rules apply. 

■ Demergers 

Where a company hives oil a 
subsidiary (eg. BAT hiving off 
Argos and then Wiggins Teape, 
or the demerger of Zeneca from 
ICI). the cost cf a holding in 
the original company is appor- 
tioned between the resulting 
holdings. Table 4 illustrates 
the case of a shareholder in ICI 
when it demerged Zeneca. 

■ Scrip dividends 

If you elect to receive a scrip 
rather than a cash dividend. 



'RE YOU PAYING TOO MUCH FOR YOUR 
SELF SELECT PEP ? 

make an initial charge of £35.00 
charge an annual management fee of just 
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charge commission on transactions but our 
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The value 


FREEPOST MANCHESTER M2 8BL 

rf ZOe* C *»" a. w « y 1 te Ml wta ■ J Ihdr i"-— ■ 


the deemed cost of the shar p* 
received is the cash dividend 
you have foregone fie, the divi- 
dend before the addition of the 
tax credit). 

Indexation on the deemed 
cost of the shares received will 
ran from the month in which 
the dividend is paid. 

■ Enhanced scrip dividends 
These are a recent innovation, 
designed for companies with a 
surplus of advance corporation 
tax (ACT) - that is, those pay- 
ing more ACT than they can 
offset against their UK corpo- 
ration tax liability. 

These are. typically, compa- 
nies with a high proportion of 
their profits earned and taxed 
overseas, such as RTZ. But 
they may also include compa- 
nies paying uncovered divi- 
dends in difficult times, such 
as Ladbroke. 

ACT is paid on all cash divi- 
dends but does not have to be 
paid on scrip dividends. Thus, 
some companies with an ACT 
problem have been offering 
shareholders the choice 
between a normal cash divi- 
dend and an enhanced scrip 
dividend (usually around 50 
per cent higher). 

For CGT purposes, the cost 
of an enhanced scrip dividend 
is taken as the market value 
on the first day of dealing, and 
is indexed from the month in 
which the cash dividend is 
paid. 


Stags 
find it 
tough 


Financial adviser Johnson Fry 
has put lots of noses out of 
joint with its French privatisa- 
tion service, writes Gillian 
O'Connor. The original scheme 
was to operate a rolling slag- 
ging fond: clients would put in 
£ 1 , 000 , which would be used to 
apply for shares in one privati- 
sation. These shares would 
then be sold as soon as deal- 
ings started and the money 
would go into the nest privati- 
sation offer - and so on. 

The first problem was that 
the French Treasury took 
umbrage at the idea of a stag- 
ging food, particularly one 
where the beneficiaries were 
perfidious Englishmen. A few 
eyebrows were raised before 
the offer of shares in Elf Aqui- 
taine, the oil company, the 
first privatisation in which 
Johnson Fry tried to partici- 
pate. 

Johnson Fry ignored the eye- 
brows and bought Its clients 
some Elf shares. But rival KU- 
iik & Co M a stockbroker which 
had been running both a 
French privatisation share- 
dealing service and a slagging 
service for some time, got 
caught np in the slipstream 
and was not able to get its 
clients into Elf. 

Johnson Fry then decided it 
might be prudent to play down 
the emphasis on stagging. So, 
it offered clients the choice of 
holding on to their Elf shares 
and topping np the rolling 
stagging fund, or sticking with 
the formula for which they 
had. signed up- Result same 
thoroughly confused clients. 


WEF.KEND FT VII 


Fidelity International Investor Service 




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li you’re interested in adding to your pension 
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plan part of yours. 

Complete the coupon or telephone local rate on 
034-5 678910 for expert advice. 




I’ll welcome details «»n how to achieve a bigger ja-nMun plan. 1 am 
currently ago! — ami am employe, l/*rll Tmpiuvcri. U 


Name {Tille; 
AiklriN' 


Pir-luxie 


SCOTTISH WIDOWS 


Tel. (« llfioc-) 

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If jirrt'rr nm in unit,- furltvr iiit.vnulinii Irmu u», jiI-mm IkV tin. )kn. D 
r-H.1 t" 1*0 U., x :S, |-r« pinl |WI MiKi IniKlim WC.*i IUH 


0345 678910 


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\ MOfiffii r dial rrnwot V mush W nh«i •’ alw> Wilwlis IV* Imn MiNjp’iiVri tSWH Jjtrut> *1. WiJh* * lua.1 Ua«u^ im m I *4 and ^ •■Ill'll Hnhiwt Ill's iimrnl .Minay, cut m J ■ 

>J Wurrau I jUITUi •. IMH' ■ 



























vill WEEKEND FT 


Is YOUR 
Self-Select PEP 

REALLY 

low-cost? 

F es - when it's with KiUik A Co. 

Most Firms charge an annual management fee on a self-select PEP - which con 
eat up the tax benefits of your dividends. 

invest through Killik & Co and make the most of the tax advantages that attract you 
to a PEP in the first place, with 
• no initial charge 

• no annual management charge 

# no cash withdrawal charge 

• no early exit charge 

• and do charge when you transfer your existing plan to us. 

As a Killik & Co client, you pay only for the work we actually do: 

• for the deals you instruct us to make ( 1 .65% - min £40) 

0 for reclaiming tax on your behalf (£7.50 on each dividend). 

You can select from the Full range of qualifying investments including most UK 
equities. Unit and Investment Trusts and Continental Equities. 

And you can get our expert advice and investment ideas at any time - for no extra 
charge, and irrespective of whether you decide to trade. 

No wonder we call our low-cost PEP service Self-Select Plus. 

With over 10,000 plans (approx £150 million in value) we are leading low-cost self-select 
PEP specialists. Find out how we make it easy For you to invest in the stock market 

Call Julian Spencer today on 071-371 0900 o, f „ 071-371 5658 

KILLIK & Co 

STOCKBROKERS 


To: Killik & Co. FREEPOST (SW5030). London SW64YY 

Pluaiw wad detail* of your Self-Select PEP service. I am a PEP investor! ] I am a new investor^ 1 please tkx box 
Name 


Addrev»_ 


Postcode. 




FT193 

Thw -hotncmctii bn bm mud at ippmcd t»f Ukk * C» MmhnotibeLsaliaSnlEuaafttSrA B*gtL adAetc 43 Cjdnpa St SW3 ZQJ 


The Temple Bar 

s 

FORMULA 




A top of the range investment trust PEP 
or savings scheme 


■ PERFORMANCE ■ 

+577% since 1 March 1984* 
+26% over one year* 

■ ATTRACTIVE YIELD ■ 

More than 34% above 
FTA All Share Yield* 

■ LOW COST PEP ■ 

Initial charge only £50 

■ FREE SAVINGS 
SCHEME ■ 


Incorporated in 1926 Temple 
Bar (total assets £255m) aims 
to secure for shareholders a 
growing income and capital 
growth mainly from leading 
UK equiti es. 



Temple Bar 

Investment Trust 
PLC 


Temple Bar is managed by Guinness Flight Investment Trust Managers limited 

To find out more complete the coupon or call Joanne Wright on 071 522 2111 
•Mcrotxil. Offer lo offer wftfi net income reinvested to 1JK 'Financial Times. Gross yields as at 1 .3.94. 


TEMPLE BAR INVESTMENT TRUST PEP AND SAVINGS SCHEME 


Please send me details or the Temple Bar Investment Trust PEP f I 

arid/cir Savings Plan I I 

Tillo tnitials„ Surname 


Address 


.Postcode, 


To: Joanne Wright. Guinness Flight Investment Trust Managers Limited. 

5 Gjinsford Street. London SE 1 2 NE 

fast iwr.vmjn.-B I, ncu HMes3jn/r • find a to the future The value of tfm Investment and Uw Income anting f rom it may ltd 
si i veil jj nse and is "or guaranteed. Also, deduction of charges and etpansv* meant you may not gel beet the amount you 
1 mortal. tr<uw i* GiunmafHgm Glooal Asset Management UmOed. a memlter of IbOtO and LAUTTIO. 




Consider the Income Plan option of Guinness 
Flight's Investment Trust Selector PEP. It offers 
3 high level of lax free income by investing in 
a portfolio of investment mist income shares. 

Currently yielding over 8% p.a., it is not 
surprising that the Income Pbn Is recommended 
by Best PEP Advice in their high income category. 

Call us on 071-522 211 1 or return the coupon 
to And out more. 

'Bir4r*i£<ru>IUiInunclWiTtu>Li«*>tr4ncU B j I l*H 

cmwni ass kl-iomt 


INVESTMENT TRUST SELECTOR PEP 


Za£3 SSti USES SB 5039) VW wqa 

* *’’ ■V- a -i H-iM-n tnirii1 

3N£ TJ. U71-S22211I 

fee n?i-S3J mi. Hnwr. n- I «f dfc- tTS PEP. 

Tdr Lsul* N— _ 


.PoLdA 1 . 


llAUlMMW 
M OM anWjOHs Mi l* 

■aaMUmiMiMHiwi 


2030-94 


THERE'S A 
HANGING 
EVERY MONTH 

Great Art demands the 
greatest space; that’s 
why on the first Saturday 
of each month the FT 
publishes a full colour Art 
section devoted to art 
and antiques. 

The weekend FT Is read 
by an estimated 1 million 
people in 160 countries, 
reaching affluent 
international Investors 
and collectors; providing 
the Art world with 
exceptional and effective 
advertising opportunities. 
37% of Saturday FT 
readers have bought 
paintings or antiques In 
the last two years 

(FT Reader Survey 1982) 

For more information about 

advertising plesee confect 
Genevieve Marenghi 
(071)873 3185 
James Burton 
(071) 873 4677 

The Financial Times - 
Putting the colour 
back into Art 


FINANCIAL TIMES WEEKJENP M AR CH 19/M ARCH 20 1994 

FINANCE AND THE FAMILY 


Beating the risks 

Debbie Harrison looks at Norwich Union’s record 


W hen Thomas Big- 
nold undertook 
the perilous jour- 
ney from Kent to 
Norwich in 1783, no insurance 
company was prepared to 
cover him against highway 
robbers. His indignation led 
him to found the Norwich 
Union Association, initially for 
fire anr) theft insurance, liter, 
in 1808, Bignold launched the 
society's life and pensions busi- 
ness. 

Today, Norwich Union is the 
UK's third-largest Insurance 
group and one of the laadmg 
providers of personal pensions. 
Its financial strength is rated 
as “adequate* by Standard & 
Poor's, the US credit rating 
agency, although the society 
has Improved its position since 
this analysis was made. 

Norwich Union’s solvency 
margin stands at over £3.4bn, 
more than three tfanas the level 
required by the Department of 
Trade and Industry, while its 
free asset ratio - broadly, the 
ratio between surplus assets 
and total assets - doubled from 
52X5 per cent in 1991 to 10.5 per 
cent at the end of 1993. 

The society holds a strong 
position in the pensions mar- 
ket, where it offers a range or 
individual plans and group 
schemes. In a recent survey of 
personal pensions by Money 
Management, Norwich Union 
was one of only four providers 
to qualify as a “best buy" for 
single premium investments, 
based on above-average perfor- 
mance and below-average 
charges. 

While the society’s charges 
are lower than average for 
most contracts and investment 
periods, there is still a front- 
end loading. This means there 
is a 40 per cent redaction on 
each premium paid during the 
“initial” period - which can 
last up to two years an longer- 
term contracts. 

These charges cover the soci- 
ety’s own costs and payments 
of commission to the adviser or 



salesman. Other charges on 
the unit-linked personal pen- 
sion plans include the bid/offer 
spread (the difference in cost 
between buying and selling 
units) of 5 per ce nt; an an im al 
management charge of 0.875 
per cent; and a £3 monthly pol- 
icy fee. 

Norwich Union shows 
greater consistency than many 
competitors on overall perfor- 
mance. According to Money 
Management, 70 per cent of the 
society's results on all funds 
were above average, with only 
10 per cent in the fourth quar- 
tfle (bottom 25 per cent). 


311 

The managed unit- link ed 
fund, which invests in the soci- 
ety's range of unit-linked 
funds, has performed well over 
the past five years although, 
for the year to the end of Feb- 
ruary, returns dropped rather 
suddenly to the fourth quartile. 

Philip Scott, Norwich 
Union's general manager (UK 
Life ), explains: “The managed 
fund slipped in the competitor 
rankings as a result of the less 
aggressive policy followed in 
the underlying funds, princi- 
pally the UK equity fund. This 
was modestly underweight in 
the smaller companies’ and 
mid-250 companies' index 
stocks at the beginning of the 
year when they experienced 
strong performance. 

“In common with many 
other f unds , the equity fund 
was underweight in the UK- 
quoted Hong Kong and Shang- 
hai bank, which performed 
exceptionally well in the final 
quarter of 1993." 

Several other funds, includ- 
ing international and North 
American, performed well dar- 


ing the late 1980s and early 
1990s, but performance has 
tailed off since 1992. Tire inter- 
national fund, retains an 
above-average ranking over 
five years but the North Amer- 
ican fund is well below average 
for this period, particularly on 
the regular premium contract 

Scott says: “The North 
American fond performance 
was adversely impacted in 1993 
by the holdings in branded 
stocks in a year when brand 
names took something of shat- 
tering.” This underperform- 
ance also affected the interna- 
tional firafl- 

Elsewhere, Norwich Union’s 
money fund has an excellent 
short and long term track 
record, while its with-profits 
contract is a top performer 
over ail investment periods 
except five years, where it is 
slightly below average due to 
recent cuts in the annual 
bonus rates. Traditionally, 
about 90 per cent of the soci- 
ety's individual pensions busi- 
ness been an the with-prof- 
its side hut, recently, the split 
between with-profits and unit- 
linked has been more even. 

Transfers of company pen- 
sion benefits into personal pen- 
sion ph"« account for 40,000 
out of the society's total sales 
of more than 500,000 personal 
pensions. In 1992, Norwich 
Union - along with two other 
major providers, Scottish Wid- 
ows and Standard Life - 
decided to suspend transfer 
business from tied agents and 
direct sales. 

Scott explains: “Since July 
1992, we have had a team 
looking at every transfer pro- 
posal submitted by our direct 
sales force or appointed repre- 
sentative channel. The pro- 
posal proceeds only when it is 
clear that good advice has been 
given." 

* Money Management March 
1994, Survey of Personal Pen- 
sions; FT Magazines, Greystoke 
Place, Fetter Lane, London 
EC4AJND. 


FACT FILE 7 


Name: Norwich Union 
Status: Mutual . 

Founded: 1808 

Hiarket p w Wam-TMttffagaBt 
Insurance groqp in the UK by tonds 
wider management 

- Financial strength: Standard*. 
Poor's assessment fe •adaquarr 
Funds under management: 

£27bn UK, £32bn wcrfcfwlde (at 
31/1203) 

Premium Income: Ei-Sbnin 1993 
(tJK He and perisfcrig 
Number of parsons) pension 
plan cflenta: 504,000 
Sales outMfc: BSsflng business 
87 percent Independent advissm, 13 
par cent appointed reps and tftect 
safes; new busbate '83 per cate and 
37 per oent respectively 
CoomiisBlan paid; Net rfisdoeed 
Nil commtsslan terms 
available? Yes, through any 
edyfea-dr atfaenda Actual terms 
are standard and rat negotiable 
Recurring stogie premium? Yes 
Expanse ratio (hat wroenses plus 
commisatoqspriddwWedtyneC 
premiums feoafee# 194 par cent In - 
1981.' 2AS perceririn '1992. 1&2 
per earth 1993 (Industry average 
last csfcufetectfn 1981 at 19.3 per 
cert) 

Reduction in tfeW fcquhrafam ararwal 
percent change over the Be of the 
contract): par cate on 23 year 

urriWinted pasaratf parskmflndustry 
average 1.6 percent). Below average 
on moat c o n tada 1 and tarns 
Penalties on early retirement 
.or terndnatlon: Nb acted exit 
charge tut 40 percent of premiums 
rpaid fir Azt tow yeas on long-term ; 
regtfer premium contracts Is 
deducted fe chotgee . 
Performance*: Managed unit- / 

betar average over KWJK equity; 
exceBant over 5 'years, above 
average over tfr .WematfeiwL good 
but dedfeerince 1891: deport and 
fired Interest, tong-terra Mow 
average hut ^Kxt-term excefient; 

- wf&i-prottS excrtfarrfc fcr.rtterrro . 
exx^^yaeK,v(iifch> average 
&»tukFT.Pona#f*&m tSM 

' tmttoxn Ow bw Mm i ago n a nt fe rny 
U ka g maeg e mih fepceaniqj 
' '-temasfe ramfeM'tetoafeAw* 

-i ■ -— »•* » -V — ■ * » : 

GJvp Wl uXw OTTgA) pirfU mxn otnznras B 

• ' - *» ' « ■-* - * ddMm ' 

OOm TOXaV |Q mRl K JU W MOW/o Bh 

Msreneireiencrftsrerpnnenii - 



Thomas Bkjncicl founder at 
Norwich Union 

Bustraitons of what ytur investment 
may produce, use a staxlerd boss 
far chargee set by Lautro (the Ufe 
Assurance end Unit Trust RegUWray 
Organisation). To reveal the Impact 
cf teal charges on the final fand of 
Norwich Union’s managed urit- 
Br*ed ptan, wa ashed far Kustredons 
using actual charges far a man age 

45 who expects to refre at age 65 . 
0e, a 20-yaar contract), paying (a) 
£200 per month and fa) s stand 
atone alngta premium of £10.000. 
Busbaitona using Laito standad 
dwgae, which to tact ara lower than 
those used by most life offices, are - 
shown In brackets. The test 
Bustratton gives atheoreUcd value If 
no charges were deducted. 

ffeR commfeaton paid 

6% orih 12%&h 
Monthly prantom E75£20 El45£72i 


Stage premium 
Eitaro 


C25A13 ETO6] 
maXB £85^001 


M-cotomtaton 


Monttdypranfim 
2200 


ScdepremkirT 

210000 


£30225 2160383- 

mgggESSgg 

£20946 £81 Art 


Theoretical no charges 


Mor^ypranfam 
£200 


£91.129 2183971 


Stogie prenAm 
£10000 


E3aan £96.483 


Chafes: -At pfBeent file t^See 


M fiwe O feteeaianifeii w hpefct HUH 

*ngnm,1gt0aoor*&aritwi me • 

UttfcB • torerpqfacfed 
mm ^epftaui w n m fao cost* stripped 
out the nwHefc few on ttm moaMr 
pemfen pin iff rr» MBNe gmth are fiur 
wot trfe d lr r n mauatcoatraas. Tho 
•sfewoffigBweawtt any tfw twto 
tmit ma at co— S a tb»»a«M W «taar , 
«tnaelfe?iatotofeftHrtlte«Kltdey 
rwrtdtlaaaperovtb&m. 


0&A 


BRIEFCASE 


nd bgd n tf cmUfy cm tm by dm 

fim ol Ams tor ttm m u m uj g«an h tan 
coLnVK At tnaMs o* bo wmntd ty past 
sscoiapoafe 


The Queen and tax 


I seem to recollect that when 
the Queen agreed voluntarily 
to pay capital gains tax on her 
investments, the base values 
were to be calculated from 
April 6 1993. Is this correct 
and. if so, why was a different 
date chosen from that which 
applies to her subjects: viz. 


March 31 1982. pins indexa- 
tion. 

■ April 6 1993 is simply the 
date from winch the voluntary 
income tax and CGT payments 
are to he made under the 
Queen's offer. 

No IHT on 
this gift 

I am aged 79 and have about 
£10,000 of my £28,000 after-tax 
income unspent each year. Can 
I give this surplus to my 
daughter without an inheri- 
tance tax liability? If the 
answer is yes, do I have to ask 


or inform the tax inspector? 

■ If you wish to give the 
£ 10,000 annual excess to your 
daughter, we suggest you docu- 
ment clearly, by letter or deed, 
your intention to make a regu- 
lar annual gift. You might also 
wish to set it up by way of a 
standing order to your daugh- 
ter so that it is clear the pay- 
ment is to be made regularly. 
In any case, it would appear 
that no IHT would be payable 


as the gift would be paid out of 
net income and does not affect 
adversely your usual standard 
of living. (Reply by Barry StU- 
lerman af accountant Stay Hay- 
ward). 

When relief 
is lost 

I have recently received a tax 
refund on account of my losses 


with Lloyd’s of London. In 
addition to losing my personal 
allowance for the relevant 
years, I have also lost the busi- 
ness expansion scheme tax 
benefits on the ground that 
fiie BBS is an allowance and 
not a relief. 

Is fids right? And is there 
any way of recovering the 
allowance? 

■ Your BBS relief is lost irre- 
trievably. unfortunately. 

It is a pity that you did not 
(apparently) read the free 
Inland Revenue pamphlet on 
the BES. IR5I, before deciding 
to make the investment 


Directors’ transactions 


The Royal Bank of Scotland 
has featured before in this col- 
umn when Peter Wood, who 
founded the Direct Line motor 
and household insurance sub- 
sidiary, bought almost 2m 
shares in December 1993. The 
share price was around 400p 
then and rose to a peak of 528p 
before coming back to the pres- 
ent 430p. Wood has been buy- 
ing again. His most recent pur- 
chase of 562,000 shares brings 
his total hnlrting- to more than 
flnv 

□ Directors of Rodime were 
last noted when three of them 
sold almost 2m shares at 
44-75p. The outcome of several 
negotiations pending at that 
time are still anticipated. Nev- 
ertheless, director selling has 


continued. The same three 
directors, including chairman 
Malcolm Mclver and manag in g 
director Peter Bailey, have sold 
more stock at the lower price 
of 30.75p. Each director still 
re tains a sizeable holding. 

□ PizzaExpress announced 
much-improved final results in 
September 1993. MD David 
Page then sold 380,000 shares 
at 102 p to meet obligations fol- 
lowing the sale of G&F Hold- 
ings to PizzaExpress. The most 
recent sales fall just before the 
be ginning of the closed period 
and were carried out by three 
directors, including finance 
supremo Glen Tomlinson, at 
132p a share. 

Cotin Rogers, 
The Inside Track 



DIRECTORS' SHARE TRANSACTIONS IN THEIR 

OWN COMPANIES (LISTED A (ISM) 





No ol 

Company 

Sector 

Shares 

Value 

<flree tore 

SALES 





Bottxxi Group 

Prop 

1.515.150 

500 

2 

Candover Investmrrts liwT 

40.000 

132 

1 

Castings — 

Eng 

8,000 

20 

1 * 

Cham ring Group 

Eng 

7.400 

25 

1 

Cooh (WSEarn) 

Big 

20,000 

80 

2* 

De Morgan — 

Prop 

67^00 

10 

1 

Hanson .. — 

Diet 

46,666 

126 

1 ‘ 

Ktetowort Benson 

Mfc* 

7.000 

38 

1 

M&W 

-ReiF 

112^00 

182 

1 * 

McAipine 

— SCOT 

40,000 

126 

t 

Neepoerd 

Eng 

127,289 

53 

2 

PizzaExpress 

L&HI 

25.000 

33 

3 

Rank Organisation — 

LStt 

54^89 

583 

2- 

Rodhne — 

... — OS&B 

1.927,076 

583 

3 

Serco 

ss» 

25.000 

369 

1 

Sftei! Dais & Trad 

o« 

76,500 

534 

1 ■ 

Tomkinsons 

— HseG 

3300 

11 

1 * 

PURCHASES 





Abbey National — 

Bnka 

lOflOO 

49 

1 

Aberforth Sirtfr Cos.. 

InvT 

0,533 

13 

1 

Abtmst Naw Dawn C 

tiivT 

7.500 

19 

1 

Brent liitxnl 

— Cham 

14^00 

15 

2 



22A00 

100 

1 

Close Brothers ... 

— Mbnk 

4.000 

22 

2 

, Dtndee & Londm 

InvT 

4.000 

13 

1 

HRsdown Hokfings 

~...FdMa 

90.000 

144 

5 

MMT Computtag 

...... SSar 

16.245 

27 

1 

Peel Hofcftiga — 

— Prop 

20,000 

72 

t 

Ranh Organisation 

L&HI 

2.000 

22 

1 

Royal Sk erf Scot 

Bnks 

562.000 

2,448 

1 

n Group 

Eng 

3,000 

13 

2 

! V** expressed tn EOOOs. TWa Sat cortwts al tisraaettona, tnctudhg the «artiae ol 

cottons H B 100% subsequently sold, with a wakra war £1 (MHO. information raieased by 

the Stock Exchange Msdi 7-11 1994. 




Sam Dbvctua Ltd, The Inside Track, Ednbugh 



— 1 


HIGHEST RATES FOR YOUR MONEY 



Account 

Telephone 

Noticef 

term 

MMmun 

depoett 

Rets 

% 

ML 

pUd 

INSTANT ACCESS A/ca 

Teachers BS 

BuBon Stare 

0800 378689 

Instent 

£500 

6.00% 

fttoy 

Leeds & Hdbecfc BS 

AHon 

0532 438282 

Postal 

CT 0,000 

6.45% 

toy 





£25.000 

6.60% 

toy 

Nonrich & Peterboromto 

Postmaster 

0733 391497 

Posted 

£60.000 

7.00% 

VV 


Nonce A/c* old BONDS 


Gresnurich BS 
B ttta nrta BS 
B&W Asaat 
CMaea BS 


CapU Shares 

081 858 8212 

30 Day 

eioooo 

6.6094 

toy 

index LMcad 

0638 391748 

90 Day 

ClflOO 

7to% 

ay 

90 Day 

0800 303330 

90 Day P 

£25X00 

7.15% 

toy 

B8S8 Rate Pfuslll 

0800 272505 

1.3.88 

£10,000 

750%C 

toy 


aritennta BS 

Capital Trust 

0538 391741 

Postd 

£5.000 

590% 

My 

B&W Asset 

MonOdy Income 

0800 303330 

90 Day P 

010,000 

694% 

My 

Chetsee BS 

Base Rate Pkalll 

0800 272505 

1A9B 

£10,000 

795% 

My 

N&P BS 

Fixed Rata Bond 

0800 808080 

30999 

£500 

7.1 0%F 



TESSAi (TfeX Rva| 


HneMay & Rugby BS 
Ipswich BS 
Duifemtine BS 
TS8 


0455 S1234 

5 Year 

£3.000 

790% 

toy 

0473 211021 

5 Year 

£100 

7.40% 

Yly 

0383 721621 

5 Year 

£3900 

790% 

toy 

local branch 

5 Year 

£250 

795% 



WON UEHEfiT CHEQUE A/o» {Oroaa) 


Cafedontan Bank 
DOT 

Cteteae BS 


WGA 

031 556 8235 

testW 

£1 

4.75% 

toy 

Cepftri Phis 

061 447 2438 

Instant 

£1.000 

4.75% 

Oy 

Classic Posts/ 

0600 717515 

Ihsfent 

CZ90Q 

8.00% 

toy 




025,000 

695% 

toy 


OFFSHORE ACCOUNTS |Pro«q 


WboMcfi Guernsey Ltd 
Brftzmtia Intem atl cn fl ll d 
Confederation Bank {/ray) 
Derbyshire pOM) Ltd 


Inta n a tional 
Index Ur*ed 
Ftoabtelnv 
BO Day 


0481 715735 
0624 628512 
0534 605060 
0624 663432 


Instant 
90 Day 
60 Day 
90 Day 


£500 

1,000 

£10.000 

£50.000 


5.75% toy 
7.00% Oty 
&30% fctoy 
7.30% toy 


QUARARTEB) BtCOfeE BOIOS {Wafi 


Coreokfcaad Lfe FN 
ConaoBdatad Life FN 
General Forttofa FN 
General Fartfolo FN 
London & Manchester FN 


081 940 8343 
OBI 940 8343 
0279 462839 
0278 462839 
0392 282306 


1 Year 

02,000 

490% 


2 Year 

02,000 

4.75% 

toy 

3 Yew 

£20.000 

5.10% 

toy 

4 Year 

050,000 

5.70% 

toy 

5 Year 

£2900 

5.80% 

toy 


KATtttm sAvmas a/c. a bohps ptman 


Investment A/C 

Income Bonds 

Capital Bonds H 

RrsJ Option Band 

Ptosionera GIB 

1 Month 

3 Month 

5 Year 

12 Month 

5 Year 

£20 

£2.000 

£100 

£1900 

£50Q 

S.25% 

6.50% 

795%F 

690%F 

7.00%F 

Vly 

fey 

OM 

toy 

«y 

HAT SAVMGS CtHlWCATBS (ta Free) 

41st Issue 

7th Index Linked 

5 Year 

5 Year 

£100 

£100 

SA0%F 

3jOO%P 

OM 

0M 

Chfldrens Band F 

5 Year 

£25 

-tfeflfl 

795%F 

OM 


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97 ' 101 C""** Strew. London EC4N SAD 











FINANCIAL TIMES WEEKEND 


MARCH 19/MARCH 20 1994 





\ 


Keep your head above inflation. 

f 7™issueX 

INDEX-LINKED X T O/ « 

tfJSSS*/ tarn 3/o P a impound, 
on top of inflation, guaranteed 
over 5 years. In 7th Index-linked Issue 
Savings Certificates* 

And it doesn’t end there. 

Not only are your earnings tax-free, but 
your money is totally secure. 

You can invest from £100 to £10,000 in 
multiples of £25. That's on top of any other 
Issues of Savings Certificates you might hold. 

And you don’t need to send a message 
in a bottle to get them. 

Just fill in the form below. 

Your cheque should be crossed “A/C 
Payee” and made payable to ‘NATIONAL 
SAVINGS (SAVINGS CERTIFICATES)' - using 



CAPITAL letters for this part of the cheque. 

Please write your name and address on 
the back of your cheque. 

Post your completed application form 
and cheque to National Savings, Freepost 
DU51, (Department X) Durham DH99 1BT. 
If, before applying, you would like an 


National Savings 

Indexslinked 

Certificates. 


information leaflet and a prospectus, pick 
them up at your post office where you can 
also buy your Certificates. Or call us free on 
0500 500 000, 24 hours a day, 7 days a week. 

This advertisement is a simplified guide to the terms and conditions 
for the sale of 7th Index-linked Issue Savings Certificates. The 
prospectus contains the full terms. If you buy by post, when we receive 
your completed application form and cheque, we will send you a copy 
of the prospectus. Once we have accepted your application we will send 
you your Certificate normally within a month. The purchase date will 
be the date we receive your application. 

If, however, on receipt of the prospectus you wish to cancel your 
purchase, rdl us in writing within 28 days and we will refund your 
money. Your application can only be accepted if the Issue you ask for is 
on sale when we receive it. Each year the value of your Certificate is 
guaranteed to move in line with the rate of inflation as measured by the 
Retail Prices Index plus Extra Interest as set out in the prospectus. 
Lower rates of return are earned on Certificates repaid in less than five 
years; no index-linking or Extra Interest is earned on a Certificate if 
repaid in the first year. Any Issue of Savings Certificates can be 
withdrawn from sale without notice. 


For 


a more 


secure future. 


IT 


Please send this form to : National Savings 

FREEPOST DU51 (DEPARTMENT X) 
Fr437 T| DURHAM, DH99 1BT 


Fm NwuliI Sivmjp uu anJ, 


“I 


l Amount pfdwqtKj 


If you prefer, use a first class sump for rapid delivery . 

1 I apply to buy 7th Index-Jinked Issue Certificates to the value of 

2 Do you already hold National Savings Certificates? (Pkj« ndo Yes } | No P ) 

If you do. please quote your Holder's Number 

3 M .. (Mr Mrs Miss Ms) Surname - 


AH forenames - 


Permanent address. 


Postcode . 


Date of birth 

(fwncul for ondn 7’0 

4 I understand the purchase will be subject 
to the terms of the Prospectus 


D.y 


Month 


Ym. 



rn 

19 



Signature. 
Djir 



NATIONAL 

SAVINGS 


L 


Daytime telephone number .. 

(uuEil ifthfn hiquny) 

This form cannot be used to purchase Certificates at a post office or bank. 


SECURITY HAS - 
NEVER BEEN SO 
INTERESTING. 



J 


IX 




/ 


All Rifhu P., 



FINANCIAL TIMES WEEKEND MARCH 



MINDING YOUR OWN BUSINESS 


Mummy’s boy 
to businessman 


P eople ealled him 
boring, a worka- 
holic. a mummy's 
boy. But they have 
grown to respect 
him. For at the age of 25 Ranu 
Miah is employing 18 people in 
a successful London business. 

His company makes leather 
coats, jackets, trousers and 
skirts for 10 shops in London, 
south-east England. Ireland 
and Manchester. The shops 
pay on delivery because they 
know they can quickly sell 
what he supplies. 

“A lot of businesses go down 
because they give a lot of 
credit And 1 don't want to be a 
finan ce company,” he says. 

Ranu is successful in a trade 
which for most of the Bangla- 
deshi leather workers around 
Brick Lane in East London, 
has offered only a poor living - 
making jackets as rapidly as 
possible for wholesalers out of 
leather which the wholesalers 
provide. 

Today, many have lost even 
this living, because wholesal- 
ers buy garments from Pakis- 
tan or India. 

Ranu's success, however, is 
based on a thorough know- 
ledge of leather manufacture 
3nd sharp fashion sense. 
“Because I am young," he says, 
‘1 know what will selL I read 
the fashion magazines. On 
Mondays I get feedback from 
the shops. 

“Other people are now doing 
the styles we had two years 
ago. When they copy some- 
thing, we get rid of it." 

Ranu was bom in Bangla- 
desh. where leatherwork is not 
regarded as a good job. But 
Bangladeshis settling in East 
London found work with Jew- 
ish leather businesses. 

He was brought to Britain in 
1979 by his father, the first 
Bangladeshi to run a restau- 
rant in Brick Lane. The restau- 
rant became a haven for new 
Bangladeshi arrivals: “He was 
like the Salvation Army,” says 
Ranu. 

"My father wanted me to 
study,” Ranu recalls, “and I got 
a job in a bank. I didn't find it 
very pleasant. My supervisor 
said I didn't do the work right. 


I knew she had more power 
than I had, so I left” 

Ho had been out of work six 
months when a relative offered 
to teach him the leather trade. 
He learned quickly and started 
working for another leather 
business as well. To widen his 
experience he began working 
for a company called Gap. 

Then, aged 19, he used 
savings to take a room and 
start his own business, R&S 
Fashions. His sewing machines 
came from a partner In a firm 
that was splitting up, and a 
novel method of payment was 
agreed: “I knew he was looking 
for a job, so I said: T will give 
you a job in our place and we 


David Spark on 
the 25-year-old 
boss of a leather 
company with 
18 employees 


will slowly pay you what we 
owe.’ 1 ' 

Ranu's old boss at Gap prom- 
ised to provide him with busi- 
ness, but first he needed an 
alarm to protect the leather 
supplies. With advice from the 
East London Small Business 
Centre, he received a Home 
Office grant for £750, three- 
quarters of the cost 

The centre also made him a 
£3,000 loan. A local bank, how- 
ever, would not let him open 
an account, even after the 
accountant handling his VAT 
recommended him. “Finally 
the manager heard me 
shouting and gave me an 
account" 

The deal with Gap did not 
last long. “Their quality was 
high and we couldn't manage 
it," says Ranu. 

For the first 18 months, 
Ranu did not pay himself any 
wages. "My parents couldn’t 
give me any money for the 
business but they looked after 
me.” 

He found work with other 
wholesalers but decided it 
would be better If he handled 


his own wholesaling. Armed 
with a reference from a cus- 
tomer, be reached an agree- 
ment to buy leather from an 
Irish merchant. 

Then he visited the manager 
of a shop selling clothes pro- 
vided by a wholesaler who bad 
made them. He told the man- 
ager “I can supply you at a 
better price but I can't give 
you credit.” 

He realised that quality of 
service gave him an advantage: 
Ranu could meet almost any 
request from customers. A 
rival wholesaler could have LOO 
customers, but might not be 
able to provide the required 
the sizes and colours instantly. 

Ranu spent the slack part of 
the year recruiting customers. 

There followed two signifi- 
cant steps: he hired larger 
premises, with an office, from 
a Bangladeshi mill ionaire: 
“Customers like to talk to you 
and have a cup of tea,” he 
says. 

And he switched his bank 
account to a branch in Liver- 
pool Street. His old branch 
“didn't like the leather busi- 
ness. They thought we were 
going to go bust. They 
wouldn't give me an over- 
draft." 

The Liverpool Street branch 
understood the problems 
caused if the cheques he wrote 
to pay for leather supplies 
were cleared more quickly 
than those he received from 
shops. He buys leather on 30- 
day credit and saves money by 
paying early. 

In the year to last August he 
recorded turnover of £113,000 
with a profit of £10,000. In the 
current year he reached 
£113,000 turnover in four 
months. 

Young Bangladeshis, he 
says, are no longer going into 
the leather trade but Into 
higher education. “They no 
longer just want money. My 
younger brother who is 20 isn’t 
talking of working. He's 
talking of studying. But this is 
my hobby as well as my work.” 

■ R & S Fashions, Unit 3. 7 
Chicksand Street, London El 
5LD (tel: 071-3760063). 



Tony Andrews 

Ranu Miah: 'I know what will mIL I read the fashion magazines and on Mondays 1 gat feedback from the shops' 


MINDING YOUR OWN BUSINESS 


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LEGAL 

NOTICE 


No, 001329 uf IW* 

In tbe IBgh Ctun ut Aatex 
Chancery Pivirion 

IN THE MATTER OF 
3IHOMMNCSPLC 
■mi 

IN T1IS MATTER OF 
THE COMPANIES ACT IW5 
NOTICE IS IIEHFJtY GIVEN fail a petition 
ms un rite 7fa Modi IW4 presented lo Her 
Majesty's High Court of Jsuicc for the 
coafinurioa ut lire rednuiaa of the capital of 
Ae shore named company Inn JEISOQWUMU 

to cmjnojma. and notice u further 

GIVEN fan the end Pel rtejn a directed to be 
heard before Mi. Registrar Hockley 41 rite 
Rovat Courts of Justice, Stroud, l-usdon. 
WC2A 2LL on Wadimfcy 3Uh MwA 1994. 
ANY creditor or shareholder uf the said 
Coapmy desiring to oppose the making of u 
Onto far the eanfinntrim of the cad redaction 
of capita] should appear al the lime of hmnqg 
In person or by comuel tar that purpose. A 
copy of fae sul Pci 4 wo will be tumhdKd to 
any snch period repairing the Mine by ibe 
umtommlaanal Solicitors on payment of Ike 
myililnt rlimgr Jbr the mine. 

Dated dm 17lh day of Man* 1944. 

3lurthter and May, (RLIly 
IS BaoojhiH Mrecr 
BCV SD8 
Tet 071 A00 1J0CI 


Care in a 

coffee cup 


C ampaigning on third 
world issues has not 
traditionally inter- 
ested the retail 

giants. 

Which makes It surprising 
that a small Edinburgh-based 
company with no fhll-time 
employees has persuaded six 
supermarket chains to stock a 
brand of coffee Gram which the 
proceeds go to improving the 
lot of Latin American hill 
farmers. 

Cafedirect was formed as a 
profit-making venture by 
Oxfam Trading, Equal 
Exchange, Traidcraft and 
Twin Trading, all of which use 
trade rather than aid to stimu- 
late economic growth in devel- 
oping countries, and are non- 
profit-making. 

Their strategy was to bay 
coffee direct from Latin Amer- 
ican hill formers, at a price 
that would give the formers a 
more secure economic footing 
than La the past Panline Hf- 
fen, a journalist who has 
become Cafddlrect's Latin 
American liaison officer, 
explained: “We wanted to pay 
a price that would do more 
than just cover their costs. 

“The aim was that they 
should be paid enough to 
introduce mechanisation, to 
cover any unforeseen contin- 
gencies, like frost, and to have 
a little bit of profit left over at 
the end." 

The going rate for the raw 
crop has been depressed since 
the collapse of the Interna- 
tional Coffee Agreement in 
1969, which caused a glut of 
cheap coffee. Cafddirect 
decided to pay roughly twice 
the going rate. 

But in spite of this, Cafodi- 
rect charges £1.55 for an 8oz 
pack of ground coffee, only 
slightly more than the average 
supermarket price. 

The company is reticent 
about how it manages it, ref- 
using to reveal the extent of 
its initial capitalisation or vol- 
ume of sales. 

However, it will confirm 
that it does not employ any- 
one. Its four board directors 
have full-time jobs with the 
founding organisations, while 
all other Cafddirect workers 
operate on a consultancy 
basis, charging an hourly rate. 

Thus Lorna Young, Cafodi- 
rect’s marketing director, 
works about three days a week 
for Equal Exchange, her 
employer, and two days a 
week for Cafedirect She sits at 
the same desk in the same 
Edinburgh office all week, but 
she logs the hours spent on 
Caftdirect work, and submits 
an invoice accordingly. 

It was Young, a former pub- 
lishing executive, who first 
began knocking on supermar- 
ket doors in 1992. Within six 
months she had persuaded 
Waitrose to stock Cafodirect 
nationwide. Safeway followed 
last spring, and Gateway (in 
200 stores), Tesco (120), Asda 
(70) and Sainsbnry's (60) have 
followed since. 

“I think we've surprised a 
lot of people by how well 
we’ve done In how short a 


time,” says Young. “I know 
onr rivals would be very inter- 
ested to know how much we're 
selling, and although I'm not 
prepared to put a figure on it, 
I can say that orders have tri- 
pled in the last IS months." 

The number uf suppliers has 
also increased. Tiffen esti- 
mates that by the middle of 
this year, farmers growing cof- 
fee for Cafedirect will total 
214.000, from 13,000 In 1992. 
All of them are based In Costa 
Rjca, Mexico or Peru, most are 
part of some form of collect Ire 
organisation, and all have to 
move the coffee to a port for 
shipment to the UK. 

Cafedirect has only a small 
share of the UK ground coffee 
market, which in turn 
accounts for only 10 per cent 
of the total UK coffee market 
(Instant coffee has 90 per 
cent). 

And Its advertising makes 
much of the fact that the col- 
lectives they buy from fre- 
quently put profits to commu- 
nal use. building schools and 
hospitals, employing teachers 
and doctors. 

The advertisements also 
claim that fanners paid only 
the going rate for their coffee 
are frequently forced to aban- 
don their land and move to the 


Cafedirect pays 
twice the rate for 
its supplies - and 
still makes profits 


city - or move into a more 
sinister branch of agriculture. 

“Coca grows like a weed and 
is altogether much less hard 
work than growing coffee,” 
says Tiffen, who has seen drug 
cartels exert pressure during 
her visits to Cafedirect grow- 
ers hi remote mountain and 
jungle regions. 

The implication or these 
claims is that Cafedirect’s 
rivals are exploiting the fann- 
ers. a suggestion strongly 
resisted by Allan AUbeury, 
spokesman for food group Nes- 
tfe, which makes Nescafe. 

“We are as keen as anyone 
to ensure the well-being of our 
primary producers," he says. 
“But because we need to buy 
in such volume, we have no 
option bnt to buy on the open 
world market 

“We feel that the best inter- 
ests of the largest number of 
farmers will be best served not 
by localised agreements, but 
by a price rise on tbe open 
market” 

Lorna Young agrees: “We 
would be delighted if the price 
of world coffee were to go up 
to a fair level. Although we 
are a profit-making company, 
and we are definitely a trading 
organisation rather than a 
campaigning organisation, I 
think we would all be very 
pleased if world coffee prices 
went up and we went ont of 
business because there was no 
longer any need for us.” 

Christopher Middleton 


Beware the bear 


Continued from Page I 

national interests, but as some 
kind of mental basket case that 
we have to massage, that we 
have to be very careful to man- 
oeuvre step by step into some 
vague relationship of “friend- 
ship" with the west 
“Russia is acting in the tradi- 
tional Russian manner, which 
has always had the element of 
dominating the erstwhile 
republics of the former Soviet 
Union. From that point of 
view, it is imperialist" 

The cause around which 
those who oppose the policy of 
the west have gathered is that 
of the expansion of Nato. 
Under the “Partnership for 
Peace” proposal put forward by 
President Bill Clinton in Brus- 
sels in January, all the former 
Communist states would be eli- 
gible to participate in the Part- 
nership at whatever level 
suited them. For the Poles, the 
Balls, the Czechs and the Hun- 
garians, it was a slap in the 
face - a clear indication that 
the west favoured Russian 
interests over theirs. 

They have powerful allies in 
the west, among them Mr Brze- 
rinskL In Washington, he said: 
“I think that if we were to 
expand Nato eastwards and 
Nato were to offer Russia a 
treaty of alliance; If we were to 
balance aid to Russia with 
more aid for the non-Russian 
states, we might succeed in 
creating a geo-political context 
that would be relatively stable 
and would mitigate some of the 
dangers (of Russian expansion- 
ism). This would help the Rus- 
sian democrats by bringing the 
west closer to Russia; if we 
don't do it now, when would 
we do it? Is a political vaccuum 
In the heart of Europe in the 
interests of Russia?" 


This potentially damaging 
attack has drawn blood, and a 
response. On Monday, the US 
Defence Secretary William 
Perry took on Kissinger, Brae- 
zinski and others when he said 
the current ' policy Included 
views of Russia both as a rival 
and a partner. This was “lost 
on our critics of constructive 
engagement They say we have 
chosen to make Russia a part- 
ner when we should be making 
them a rival. And I say that is 
a false dichotomy." 

The debate can only be 
Inconclusive: for it depends on 
factors which are unkn owable. 
Migranyan, the presidential 
advisor, believes Russia is “in 
no sense a democracy: it is 
passing through a time of 
authoritarianism from which U 
might emerge into a democ- 
racy". Professor Peter Redda- 
way of the US Institute for 
Peace, one of the most consis- 
tently pessimistic of the promi- 
nent commentators on Russia, 
points to the criminafisation of 
the economy and warns of a 
turning away from reform. 

, I s certain that we are fac- 
ing a country which will 
remain an enigma - If no lon- 
ger enclosed In q dogma. It Is 
undergoing a loss of empire of 
the kind Britain and France 
sustained in the 20th century, 
with an adoption or democracy 
which took most of the west- 
ern states centuries to achieve, 
plus an opening to markets for 
which the culture was wholly 
unprepared, it should not be 
forgotten how intense this pro- 
cess is, 

■ BBC Radio 4 will broadcast 
programmes by John Lloyd 1' 
R ussia : the Bear Awakes " 
tomarmo (Sunday) at 4.15pm: 
and “Russia, the Bear Con- 
toned?" on Thursday at 8pm 
(repeated next Sunday, 4.15pm) 


# 



i 




# 



A 





* 1 



4 




«**»■*•*»& 






WEEKEND MARCH 19/MARCH 20 1994 


WEEKEND FT X! 


TRAVEL 


An image of rural England set in stone 

Fi om the south coast to Bath , James Henderson traces the English stone belt , enjoying distinctive landscapes at close quarters 

k ~ i?***^' ri ^ r:: jUL ' ‘ ■■ 

’ v ' *' ! =vV ' 1 "V- • ' ‘ '''• y y>y-v- '• •>•".. -■ .* n 



The weir and toO bridge in the 


T he English stone belt - 
the seam of limestone 
that is the source of 
England’s finest build* 
mg stone - runs from 
Dorset on the south coast to Bath 
and then up through the middle of 
England to Lincoln and on to Hum- 
berside. It cuts a green and rural 
swathe between the brick-built 
industrial areas on the coasts. On 
the downs and wolds of the stone 
belt you will find some of England's 
prettiest villages. 

The limestones were laid by sedi- 
mentation millions of years ago, by 
the rivers oF a long-disappeared 
Jurassic continent Minerals and 
tiny Crustacea were compacted into 
beds of stone, layer upon layer. As 
England slowly formed, they were 
buried and then buckled and crum- 
pled by continental shift emerging 
in places on the surface, ready to be 
quarried. 

“If you really want to get to grips 
with limestone, James, you’ll have 
to climb on it”, said a friend, kindly 
offering to help me do so. This is a 
man whose idea of fun is terbrnnai 
climbing at 8,000m (26,000ft). I had 
done only two days' climbing in my 
life, so I set off apprehensively. 

We headed for the south coast 
where the stone belt emerges in 
cliffs between Swanage and Port- 
land, in places 150m high. Cormo- 
rant the climbers' name for the out- 
crop we climbed, looked like a sheer 
face of limestone to me. 

It dropped to a graveyard of mas- 
sive broken slabs, played ova- by 
the waves. We abseiled off - a point 
of no return, I realised soon enough 
- and set about climbing . On the 
way back up. Cormorant seemed an 
appropriate name, even if the birds 
have been frightened off by men in 
fluorescent lycra. 

In quieter moments, standing on 
a tiny ledge 100m up, I looked 
around. The limestone strata were 
clearly visible in the cliff-face. 
There was no quarrying here, but 
further down the coast I could see 
gaps like missing teeth where the 
quarrymen had used a natural ledge 
to tunnel into the cliff. From there 
the blocks were loaded straight on 
to boats for shipment 
Certainly I had an appreciation of 
limestone by the end of the day. I 
had been hugging it. alternately 
wedged into crevices and dinging, 
spreadeagled. on to exposed but- 
tresses. wondering what on earth I 
was supposed to do next There was 
a certain intimacy in carefully pick- 


ing tiny banri-hnidg out of folds In 
the rock. 

Afterwards, we took time out at 
the Square and Compass, a garden 
pub at Worth Matravers where 
many a climber has sat with a pint 
of ale and verbally picked his way 
back over the cliff-face. Like so 
many buildings in the area, the pub 
(which takes its naim» from stone- 
masons' tools), is built of local 
stone. 

It was mid-summer, and the sun 
was gradually sinking, following its 
longest path over the downs. Mid- 
June is a fine time of year and a 
pub' garden a fine place to witness 
it With the first absurdly green 


blooms of spring growth just past 
the trees were filling out and the 
hedgerows be ginning to billow. 

Pur beck marble is another dis- 
tinctive stone that originates in this 
area. It is a grey stone which over- 
lies the limestone beds in thin 
seams and is viable in places, pro- 
truding from the chff-face. Purbeck 
marble is not a marble at all, but is 
so called because it is one of the 
only British stones to take a polish. 

It was very popular in ecclesiasti- 
cal b uilding s in the 13tb century, 
and was shipped all over the coun- 
try alongside Portland and Purbeck 
limestones, to be used for interior 
decoration. In Salisbury cathedral 


you will see slender columns of Pur- 
beck marble decorating the massive 
columns of the nave. Tiny kidney- 
shaped Crustacea - ooliths - are 
still visible in the stone. 

Salisbury Cathedral, which is visi- 
ble from the downs for miles 
around, is built entirely of local 
Chflmark limestone - not far from 
the south coast the stone belt disap- 
pears under the chalk downs of 
Hardy country, re-emerging in the 
Vale of Wardour in northern Dorset 
and southern Wiltshire. 

In the 60 years from 1220. 60,000 
tons of stone were carted from quar- 
ries 12 miles from Salisbury. Sadly, 
limestone steadily dissolves in 


water, and Hii« left the cathe- 
dral sorely in need of repair, 
although the spire has been 
restored. The Chflmark quarry was 
reopened to provide exactly the 
right stone for the work. 

The country around Chflmark 
and Tisbury, and on down to Sher- 
borne, is rolling, rounded hills. The 
villages hidp in the small, tree-lined 
valleys, and most of the houses are 
built of local stone from any of the 
many quarries in the area. Here the 
roofs are thatched or laid with slate. 
Tisbury has one of the country's 
largest tithe barns, with an enor- 
mous thatched roof. 

In the tiny lanes, the hedgerows 


were filled with wild roses and eld- 
erftower. I was out walking when I 
came on some familiar-looking 
women chattering and rootling 
around in the hedgerow. It was my 
mother and godmother, gathpri Ti g 
the year’s crop of elderflower heads. 
Using elderflower heads, water, 
sugar and some citric arid, you end 
up with a fine, and very English, 
summer drink. 

Limestone has many colours 
(resulting from the amount of iron 
oxide) and the different quarries are 
known for their colour. Where Port- 
land stone is very white, the Cots- 
wold stones are famed for their 
honey colour. Others have tinges of 


ochre and even pink. Chflmark 
stone is light beige, with some 
touches of green, best visible after 
rain. Add to this the yellow, white 
and red lichens and the stone has 
an .imaring variety. 

The stone belt disappears below 
ground soon after Chflmark and 
appears again in north Wiltshire, on 
the slopes of the Avon valley. Here, 
villages such as Westwood and 
Freshford lie in wooded hollows, 
linked by tiny sunken lanes where 
the greenery threatens to bar your 
way. The stone is light yellow and 
golden and the antique, moss-cov- 
ered roofing slates reappear. 

I arrived in the local market 
town. Bradford-on-Avon. where 
pretty stone buildings cluster on 
the hillsides in lines. Bradford is a 
friendly town, its heart still at the 
medieval bridge, where the medi- 
eval stone buildings of the Sham- 
bles. the old market, look on today's 
trade of bakeries and bookshops. 

Even the factory' buildings are 
made of stone in Bradford. There 
was a big trade in wool (sheep have 
traditionally been farmed in lime- 
stone areas) and the factories stand 
in the centre of town on the river; 
the water from the weirs was used 
for washing and for felting into 
cloth. 

From Bradford I made my way 
along the Avon valley to Bath, cycl- 
ing along the towpath of the Kennet 
and Avon canal. Woollen cloth and 
Bath stone were shipped along the 
canal early last century, but nowa- 
days the barges cany families on 
summer holidays. In two places the 
canal is diverted across the river 
Avon on stone aqueducts. 

Bath is known for its crescents, 
all built of local stone. Arranged in 
uniform lines, they seem grand 
after the rural abandon of the 
nearby villages, but they show off 
light honey-coloured Bath stone 
(“so soft and creamy”, according to 
one mason I met) strikingly when it 
shines in the summer sun. 

At school I was told that a man's 
nature is defined by the landscape 
around him. 1 suppose I know a few 
Scotsmen with the demeanour of 
granite, but it would be stretching 
the print to suggest that the soft 
contours of the stone belt - or even 
the dependability of limestone - 
have done much to shape Wilt- 
shire’s modern-day inhabitants. 
Still, travelling along the stone belt 
gives you a glimpse of people living 
a very English existence, rural and 
tranquil. 


Practical Traveller 

Life with 
the lions 


: T" ou know what they 
L/ say: if you come 
f face to face with a 
A north American 
untain lion, don't run away, 
ack. They are as powerful 
jaguars and have teeth as 
g as your little finger, but 
mi tain lions are basically 
erential. 

Iiey are also highly perse- 
ed - or have been. For 
its, they have been shot at 
ranchers and hunters. Lion 
nt>crs are reckoned to have 
elled off recently. But US 
te game agencies still know 





rn( 

im rvusj OUT 

COLLAR 


out them to ensure 
,al in the face of 
i uman numbers, 
direct way to find 
he lions is to join 
many expeditions 
by Earth watch. 
Lirthwatch has sup- 
U field projects in 
is by providing sei- 
i 40.000 volunteers, 
and equipment. It 
m is to ■' improve 
ing of the planet, 
y of its inhabitants. 
lx; esses that affect 
of life on earth”. 
e sharp end of eco- 
a logical step Ibr- 
nyune tired of the 
icraries and tsome- 
up-worn package 
; together by n>m- 
r companies, 
i n tain lion trips 
v Earthwatch take 
flbinn mountains of 
c expeditions are 
his year; July 6-1 "• 
ust 7 . August 17 - 28 . 
MS and September 


The cost is £880 ($1300) each, 
which covers food and accom- 
modation. plus a contribution 
to the project’s overheads 
(staff, field camp, vehicles, etc). 
Brims leaving you get an expe- 
dition briefing (25-75 pages) 
outlining the history, aims and 
logistics of the project. Not 
covered: transportation to and 
from the meeting point In the 
case of the mountain lions, this 
is Pocatello. Idaho. 

Says Earthwatch: “These are 
real scientific expeditions, not 
tours. Earthwatch makes every 
effort to describe accurately 
field conditions in its publica- 
tions. but field work in remote 
locations is a delicate business 
and prone to last-minute 
change. Certain details of your 
expedition may be different 
from published descriptions." 

The Idaho lion project is try- 
ing to answer various ques- 
tions. Example: what costs 
does inbreeding impose on 
small, isolated lion popula- 
tions? Depending on season, 
Earthwatch teams help cap- 
ture, radiocollar and monitor 
m aintain lions, and locate kill 
sites. All teams share cooking 
duties. 

There is a huge range of 
Earthwatch expeditions on 
offer. You can look for dino- 
saur remains in Argentina; 
study human origins in 
Uganda; visit the mammoth 
graveyard at Hot Springs, 
South Dakota; ponder the rise 
and fall of the Himalaya; track 
jaguars and other species in 
Peru; join a Bahamian reef sur- 
vey; photograph humpback 
whales off Hawaii; and observe 
the behaviour of golden eagles 
on the Isle of Mull. Scotland. 
Almost all expeditions last 12, 
13 or 14 days, with the cost 
generally falling between £800 
and £1300 each (plus travel to 
the pick-up point, visas, insur- 
ance and side-trips). Under 
some circumstances, part of 
the cost may be tax-deductible, 
even for UK tax payers. 

You have to be a member of 
Earthwatch to join these expe- 
ditions: £25 annually (family 
membership: £30). Details: 
Earthwatch Europe, Belsyre 
Court. 57 Woodstock Road, 
Oxford OX2 6HU. Tel: 
0965*516366. fax: 0865-311383. 

Michael 

Thompson-Noel 




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J ohn Scott Russell, a young 
Scottish engineer, was riding 
along the towpath of the 
Forth-Clyde canal one day in 
1834. The horse-drawn barge he 
had been watching stopped sud- 
denly hot, to his amazement, its 
bow wave continued travelling 
down the canal. 

It took the form of “a large soli- 
tary elevation, a rounded, smooth 
and well denned heap of water, 
which continued its coarse without 
change of form or diminution of 


Russell followed tbe solitary 
wave - about lVsft high - for more 
than a mile down the canal before 
ft lost its shape and disappeared. 
He was the first scientist to 
describe this extraordinary wave 
form, known now as a soiiton, 
which maintains its shape and 
speed without widening and dis- 
persing in the usual way. 

The soiiton is an intriguing natu- 
ral phenomenon. The best known 


The Nature of Things/ Clive Cookson 

Solitons on the crest of a wave 


example is a tidal bore rushing up 
a river estuary, though satellite 
pictures have occasionally shown 
solitary waves travelling for hun- 
dreds of miles across the Pacific 
Ocean. 

Today solitons are tbe subject of 
intensive research worldwide, not 
by scientists interested in the natu- 
ral world but by engineers who 
want to send as much Information 
as possible down optical fibres - 
the hair- thin glass strands which 
wilt make op the global communi- 
cations network of the 21st cen- 
tury. 

For optical communications, of 
course, the soiiton consists of light 
instead of water but the mathemat- 


ical requirements are the same; the 
forces tending to compress the 
wave must balance exactly those 
tending to disperse it Too much 
compression destroys the soiiton as 
surely as too modi dispersion; you 
can see the effect in water by 
looking at incoming waves “break- 
ing” on a beach. 

By transmitting the zeros and 
ones of digital data as solitons 
instead of foe ordinary pulses of 
laser light used in c ur re n t optical 
systems, engineers hope to squeeze 
10 to 100 tiroes more information 
down the line. 

It Is impossible without using 
some technical jargon - and 
fiercely oversimplifying the physics 


- to explain how the soiiton keeps 
its shape as it moves down the 
fibre. Any p ulse of light, even one 
created by laser, has a slight 
spread of wavelengths travelling at 
slightly different speeds. The effect 
is gradually to smear out the pulse 
with time. 

The compensating factor, which 
keeps the soiiton together, is “non- 
linearity”: the presence of the light 
itself produces a slight temporary 
increase in the speed of light in foe 
fibre. This enables the back of the 
wave to keep pace with the front 

Opto electronic engineers at tele- 
coms research centres such as BeO 
Labs in tbe US and BT Laboratories 
in the UK have already achieved 


impressive test results. 

They have made solitons carry 
data over the e q u i valent of inter- 
continental distances at a rate of 
I5bn digital “bits” pa- second down 
a single fibre, without any errors. 
That Is enough to carry more than 
1m simultaneous telephone calls. 
Over short distances - equivalent 
to a local network around a build- 
ing - engineers have achieved soii- 
ton transmission at lOObn bits per 
second. 

However a huge development 
effort is still required by telecoms 
companies and the manufacturers 
of optical fibres, lasers and associ- 
ated equipment, before soiiton 
systems can be put into practical 


service. One challenge is to control 
the timing; the lasers have to gen* 
erate bursts of light lasting no 
more than 10 picoseconds (10 mil- 
lion-millionths of a second). 

Another is to overcome the 
unwanted “noise on the line” that 
will be generated by optical ampli- 
fiers on long-distance cables carry- 
ing intense soiiton traffic. And new 
computerised exchanges will be 
required to handle the torrents of 
data. 

Bat Richard de la Rue of Gla^jow 
University, who heads one of the 
Polling academic research groups 
in the field, believes practical appli- 
cations will be under way before 
foe end of the century and perhaps 


as soon as 1997. The next transat- 
lantic fibre optic cable, to be 
installed next year, will not use 
solitons but the one after it might. 

The introduction of soliton-based 
systems depends not only on tech- 
nical progress but also on contin- 
ued rapid growth in demand for 
global communications capacity. If 

the multimedia revolution lives up 
to its advance billing, we will need 
not only solitons but also other 
capacity-expanding innovations 
such as “wavelength division mul- 
tiplexing" (adding new channels by 
sending solitons of different wave- 
lengths simultaneously down the 
same fibre). 

If so, the transition from an 
inquisitive engineer observing the 
sedate progress of a solitary wave 
along a Scottish canal to billions of 
solitons a second streaming at the 
speed of light down an optical fibre 
will provide a perfect image of sci- 
entific progress from the I9th to 
the 21st century. 


Despatches 


Detour to danger in Soweto 


I t was never our inten- 
tion to go to Soweto. On 
the contrary we thought 
it would be not only 
unsafe but ghoulish to 
visit so tragic a centre of vio- 
lence and misery. 

So, on the eve of our only 
day in Johannesburg, we asked 
the hotel porter to arrange for 
us a tour of the city centre. 
This, he said, might be diffi- 
cult: there were tours to Sow- 
eto on a Sunday but not nor- 
mally of Johannesburg. 

In the event a city tour was 
arranged and my wife and I set 
off in a minibus driven by an 
amiable and well informed 
African guide. 

At the Cariton hotel in the 
city centre the driver had 
arranged to pick up two other 
customers, a New Zealander 
and his Canadian girlfriend, 
both doctors. While we waited 
for them the tour guide 
explained apologetically that 
the newcomers wanted to go to 
Soweto hospital where the girl 
had done part of her tr aining . 
Would we mind going there? 

Was the route safe? “Abso- 
lutely." he replied “We go 
there every day and avoid pos- 
sible trouble spots." And he 
assured us that the Sowetans 
were glad to see foreigners and 
anxious that their problems 
should be understood abroad. 
It seemed churlish and craven 
to refuse. 

As we beaded along the dual 
carriageway to the west of the 
city our mis givings began to 


seem silly. When we stopped 
on the hard shoulder for the 
New Zealander to take photo- 
graphs of the workers' hostels 
we were at least a quarter of a 
mile away from than. 

Certainly the view was inter- 
esting: we had not realised, for 
example, that, almost adjacent 
to the extensive barrack-like 
hostel area, was a tidy estate of 
detached family bungalows, 
small but clearly respectable 
and well cared for. Beyond 
them in the distance we could 
see the hospital. 

Resuming our journey, our 
uneasiness returned with a 
vengeance, as instead of keep- 
ing to the highway, the driver 
took a rough road which 
divided the hostels from the 
housing estate, presumably to 
a short cut to the hospital. 

We had driven slowly almost 
to the T-junction at the end of 
this road when it happened: a 
blue Toyota saloon overtook 
and stopped in front of us. 
From it appeared three or four 
armed youths, one of whom 
aimed a pump-action shotgun 
at the windscreen of the mini- 
bus. 

The other youths ran to both 
sides of the bus and forced 
open the doors. The driver was 
made to get out and his place 
was taken by a member of the 

gang. 

A shotgun, accompanied by 
angry shouts, was thrust 
through the doorway of the 
bus to within inches of the 
New Zealander’s face. He 


thought he was about to be 
murdered but was told to hand 
over his camera and valuables 
and get out of the bus. We all 
had to do likewise. 

The robbery completed, the 
youths got into the bus and 
drove off. 

Relief at having escaped with 
our lives, and uninjured, was 
soon overtaken by the realisa- 
tion that we were in the middle 
of the township without trans- 
port or access to a telephone. 

Neither our driver nor any of 
the bystanders offered any 


Gordon Longridge 
tells how a 
day trip ended 
in robbery 
at gunpoint 


help. My wife fortunately had 
the presence of mind to ask a 
pleasant looking young woman 
standing at the door of her 
bungalow if we might come in. 

The woman hesitated, 
clearly aware that helping us 
was not without risk to her 
family, but then agreed that 
we might wait in tbe house. 
The woman, her husband and 
their neighbours proved to be 
kind and friendly people. 

The police were called and, 
while we waited, we were 
offered been coffee was served 
in the best china raps. The 


house was immaculate, fur- 
nished and maintained with 
evident devotion and care. 
There was a gentleness and 
quiet goodwill about these peo- 
ple which was touching. 

Many of them said almost as 
if it had become a conventional 
greeting, “All we want is 
peace ” and one believed them. 

The police came within 15 
minutes - not a bad response 
time for a district where 
houses seem not to be num- 
bered sequentially and streets 
are not obviously named 

They arrived in an armoured 
vehicle and a flying squad car. 
Three young white Afrikaners 
with machine g tms and pistols, 
wearing flak jackets, came into 
tbe bungalow and took up posi- 
tions by tbe front and back 
doors. 

They dearly took seriously 
the possibility that the inci- 
dent had been set np as a trap 
for them - it had happened 
before. 

They were calm, profes- 
sional, extremely courteous to 
our hosts, and even friendly to 
us, although they must have 
thought we had behaved irre- 
sponsibly. They relayed at 
once to other squad cars the 
detailed description the New 
Zealander was able to give of 
the car the gang had used, and 
they patiently took statements 
from each of us. 

None of us could describe 
our attackers in any detail: we 
were even unsure whether 
there had been three, four or 


EXPEDITION CRUISING 


Journeys to the Arctic 


EXPEDITION CRUKES ABOARD THE MS ALLA TARASOVA 
TO SPUZBERGEN, FRANZ JOSEFLAND AND GREENLAND WITH TONY SOPER 


Join Tony Soper and bis team of eminent 
ornitnnlogi»l». geographers and historians on 
one of our Arctic expedition cruises in June 
und July. 

Although we set sail with a pre-planned 
schedule, experience has shown us that in order 
to achieve the most exciting expedition cruise, it 
may be advantageous to make changes to the 
day's schedule following a local recunnaissance, 
a change in the weather, or perhaps a polar bear 
or whale sighting. Now here is this policy more likely to bring 
rewards than in the High Arctic where nature in its purest 
form will reveal highlight after unexpected highlight. 

J f you are the type of traveller who prefers a rigid 
schedule and a totally planned day. then, these are probably 
not the trips for you. It. however, you enjoy encountering the 
unrxpencd and impromptu in the company of enthusiastic 
and knowledgeable leaders together with travellers of a 
shared passion then our Arctic visits this Summee, could be 
just what you are seeking. 

The Alla Tarasova’ has been chartered for our series of 
expedition cruises. She is ideal for the venture, being a 
Murmansk based vessel of just under 4000 tons, over 300 feet 
long, fully stabilised and having an ice-strengthened buiL 



Although she is equipped to carry over 150 
passengers we will be sailing with a maximum 
of just over 80 passengers. 

A0 tbe cabins have outside views and are 
tastefully furnished with two lower beds and 
have the advantage of private showers and 
toilet The public facilities are excellent and 
offer a lounge/lecture room, library, and two 
further lounges and a single sitting restaurant 
Meals on board will be delicious and hearty, 
perfect for the Arctic and prepared by our own chefs. Our 
international caterer in Vienna will provision the vessel and 
ail arrangements will be supervised by our own hotel services 
manager: 

The atmosphere on board will be informal - no black 
tie events. Our days will be filled with exploration ashore and 
informative talks aboard by Tony Soper and three of four 
other guest speakers. 

The Russian crew of 80 ate excellent in every way and 
are of course superb seamen for the Arctic. Although the 
Alb Tarasova cannot be described as a glamorous snip she is 
extremely comfortable and spacious and a three million 
dollar refit last year has brought her up to date without 
spoiling her charm. 


BEYOND BEAR ISLAND 
23 June- 6 July 1994 

.Uiiling from Leith f Ediobaigh] u> Fair bk 
Shetland, Lofoten Iflindn. ftw Inlands. Tmmfb. 
Bear [stand and 4 dan ia Spitsbergen. 
I*rirm I mm £NS0 for a - brdded cabin. 
Single cabin £3300. 


JOURNEY TO A FORBIDDEN LAND 
6- 17 July 1994 

Fhr loSpitxbngra for ihrrr daw of exploration, 
then continue with wiataixe at an IteSmho tar 
Fran* jMcAand-Hooitcc island, ifubini Rock and 
Northbrook Island. Excursions bv Zodiac and 
heticupier and inspection of Icc-Bnakec 
Prices from £2650 for a 2 bedded cabin. 
Singh* cabin £3495. 


ARCTIC CROSSING 
17 July-3 August 1994 

Fly In Spitsbergen for two days of exploration, Urea 
amri n ne to Bear Island, Jan Mayen. Iceland 
(UsUms Island*, EWey and Reykjavik) and 5 days 
sailing along tbe coast of Gcaeniond including tbe 
fantastic sight of Dbko Bay. 

Prices Iran £3250 for ■ 2 bedded cabin. 
Single cabin £3950. 


AU prices include all air travel, full board on board and all shore excursions 

FOR FURTHER PETALS 

Please telephone 071 -491 4752 (7 days a week during office houni) 


I NOBli Cfl LtDONIfl irniTfD) 


11 CHARU5 STREET, MATFA*. LONDON W1X7HB 
raBHONEOTM?! 4752 fACSM&£ 071-409 0834 
M HOUR BROCHURE ANSWBFHOf«an-355 T«4 
ATCX3W8 ABTAC97W 


five of them. Shock and fear it 
seems, enfeeble the power of 
observation. 

“What about the many other 
witnesses?" we asked. “There 
won’t be any other witnesses.” 
was the reply. 

We asked the police about 
their work. We supposed that 
tours of duty in Soweto were 
short. Not at all, they 
explained: it takes so long to 
get to know the district that 
they have to stay. One of them 
had done seven years there 
already. 

Tbe police escorted ns all ont 
of the township and drove the 
young doctors to Soweto hospi- 
tal which, to our amazement, 
they still wished to visit We 
were interested only in return- 
ing to the calm and security of 
our hotel. 

The next morning my wife 
went to a department store in 
the hotel complex and asked 
for a gift voucher to be sent to 
the woman who had given us 
sanctuary. “It will never get 
there," the girl explained, “die 
will have to come here to col- 
lect it" We very much hope 
she did. 

Had we been foolish, or 
unlucky, or had we been set 
up? Certainly there were con- 
flicting views about the wis- 
dom of a visit to Soweto. 

The hotel porter and the tour 
guide had assured us that 
there was nothing to fear. The 
two young doctors had been 
similarly advised by the 
friends they were staying with 
in Johannesburg. Yet the 
white South Africans we told 
of our experience were aghast 
that we had gone to Soweto 
and that the staff of the hotel 
had offered tours there. La the 
words of a startled young girl 
in the bank: “No one goes 
there; people get killed in Sow- 
eto.” 



The streets of Soweto: 


Qyn Onto 


Skiing /Arnie Wilson 

Spring snow is a grey area 


T he snow in lower 
Austria is melting 
fast: I have just 
eqjoyed a great day's 
skiing in EitzbQhel, bat it is 
impossible to ski all the way 
down the Hahnenkamm with- 
out hitting patches of mud. 

Temperatures began to rise a 
couple of weeks ago. Christian 
Berger, tourist director for the 
Soli area, said: “Until 2 weeks 
ago we had wonderful condi- 
tions even thnng h this was the 
warmest winter for 100 years. 
But last week the temperatures 
were higher than in Turkey or 
Greece. It was 25®C in Innsbruk 
and even 21°C 19 here In the 
mountains." 

Now, there is virtually no 
snow - slushy or otherwise in 
some low-lying villages. When 
we drove past Hopfgarten. on 
the other side of the mountain 
from SC11, a popular haunt 
with British skiers, the lack of 
snow was plain for all to see. 

My plans to ski down from 
Soil have melted along with it 
But then the pistes down to 
Hopfgarten are traditionally 
the first to lose their snow. 

The conditions alarmed a 
dozen or more members of the 


Allegany Ski Club from Mary- 
land. They arrived from the US 
a week ago for what they were 
hoping would be “skiing like 
they have in the Rockies". 
They were shocked to see so 
many green fields basking in 
so much sunshine. 

Mike Fetchero, the organiser, 
found himself under siege from 
his group, most cm their first 
skiing trip to Europe. 

“It’s a long way to came for 
Florida-type weather.” he said. 
“I admit that most of the group 
was upset by the spring-like 
conditions, but by taking a 
two-hour bus-ride up the Stu- 
bei glacier, we’ve had some 
good skiing. And we’ve met so 
many nice people and enjoyed 
such good sight-seeing that it 
doesn’t really matter." 

But this does not mean Aus- 
tria has no snow. 

The ski dub did not really 
need to bus to Stubei, one of 
seven Austrian glacier areas 
which currently report good 
snow, and which manage 
year-round skiing. KitzbOhel 
stm has plenty of good skiing 
between Jochberg and Pass 
Thum. and although you can 
no longer ski from Sdll to Hopf- 


garten, you can still get to 
Brixen, Westendorf or Schef- 
fau. It is just that conditions 
are more than a little spring- 
like. 

“It is spring on Monday after 
all," said Marion Telsnig at the 
Austrian Tourist Office in Lon- 
don. “The conditions are 
good," she said, “for the time 
of year. The problem with Brit- 
ish doers is that they expect to 
ski from 8am until the lifts 
close every day. The Austrians 
are a little more laid back 
about It They realise that in 
springtime, you ski till lunch- 
time and then - when the 
snow gets a little sticky - you 
do something else." 

Whatever the official line, 
skiers are entitled to expect 
decentish s kiing in the first 
part of March, and this time 
last year they had it even here 
in low-lying KitzbQheL 

But this year, both Austria’s 
and Italy's lower slopes are 


becoming bare earlier. France, 
on the other hand, with higher 
siding areas, is still reporting 
great skiing. Austria itself still 
has good snow on both upper 
and lower slopes in its stalwart 
traditional high-spots of Ischgl, 
Obergurgi and St Anton. 

Whether you call it slushy, 
spring-like, good or excellent, 
the quality of skiing in Aus- 
tria's lower resorts in middle 
to late March is something of a 
grey area. But not really a 
white one. 

Meanwhile, out of my win- 
dow I can see it is snowing 
again - not enough to whiten 
the lower slopes, but a handy 
sp rinkling higher up. If it car- 
ries on, spring might have to 
wait after alL 

■ Arnie Wilson travelled to the 
Austrian Tyrol with Atrtours, 
Wavell House. Holcombe Hoad. 
Hebnshare. Rossendale, Lancs. 
BB4 4NB, tel 0706-2-10033: and 
Avis. 


FT Round the World Ski Expedition 


Arnie Wilson and Lucy Dicker 
are trying to ski every dag of 
1994 on a round-the-world 
expedition. This week, they 
moved from North America to 
Europe. Arnie writes : 

We arrived in upstate New 
York to enjoy the Catskills 
ski areas: BeDeayre was fun, 
but we had been warned that 
Hunter Mountain would be 
“a zoo” on a Saturday. We 
were pleasantly surprised - 
no-one mugged us or offered 
us drags. Perhaps the armed 
security men helped. 

We wanted to ski Cortina 
and Davos (tbe UR versions) 
in preparation for Europe, 
but only Cortina was open. 


Then we lingered too long 

at genteel Windham, skiing a 
few runs with the Austrian 
sld school director Franz 
Kirkl, and completed our 
25th Everest (in terms of 
vertical feet skied) in North 
America. Things got worse 
when we became lost in New 
York and only caught the 
flight to Europe by the skin 
of oar teeth. 

■ There is stiQ time W win a 

skiing holiday in 
Courmayeur, or ski 
equipment, by entering the 
competition which appeared 
in Weekend FT on March 5 
(copies from the FT shop, tel 
n?i sm 3324). 


DOWNSIDE 

SCHOOL 

Are you undecided about the right school 
for September? 

We area Benedictine School for Catholic Boys aged 10-13. 
Downside’s partnership of Monastic and Lay Staff works 
to help each boy 10 become 

•motivated -energetic - dedicated 
•confident -successful 
developing into acampletc and baianoed young adult ready 
to move out into, and contribute 10, the wider world. 
Beftwre making this crucial derision, why not 
come and meet us? 

For farther information, please contact 
Dom Antony Soldi. Downside School, 
Stratton 00 the Fosse, Bath BA3 4RJ. 
Tet: 0761 23 2306 (232513 Fax: 0761 233575 
Downside a « Hqpaerad Purity Number 232548 



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***** 


# As They say in Europe/ James Morgan 

A Titanic sinking on the rugby field 

hftva i# l «■ 


T here is reason to believe 
that today could be 
marked by extraordinary, 
even catastrophic, events. 
If France lose their final match in 
the five nations' rugby champion- 
ship against Scotland this after- 
noon. there is fair chance the team 
will be wiped out by a public 
driven beyond all reasonable levels 
of tolerance. Even more amazing 
will be the sight of the French 
sports writers disappearing en 
masse In a flash of spontaneous 
combustion, or flinging themselves 
from the highest point of the Mur- 
rayfield stadium in Edinburgh. 

There will be different motives. 
The commentators on the France- 
Inter radio station will be enraged 
by the unfairness of ft all. Then- 
reporting of the (losing) game 
against England in Paris a fort- 
night ago was enlivened, for me, by 
the succession of Invisible fouls 
committed by English players, and 


by a total ignorance of rale 13 
which the referee (rightly) used to 
stop Thierry Lacroix having a sec- 
ond go at a conversion attempt 
when the ball had fallen over. “We 
pe all Europeans and therefore 
impartial, but really ..." said Eric 
somebody or other into bis micro- 
phone. 

The game also “appeared” 
entirely different because, in the 
mouths of the commentary team, 
the distinctly un androgynous 
England hooker, Brian Moore, 
eme rged as Brie-Anne Morre, 
surely an American hooker. 

In the newspapers, however, 
there was no feeling that France 
were victims. The French writers 
decided, unanimously, that there 
was just mm problem: their twam 
was no good. This was not just a 
matter of losing against moderate 
opposition, nor of falling to play up 
to expected standards. It was a toil- 
ore of cosmic proportions - a sink- 


ing of the Titanic on the rugby 
field. It was the kind of failure of 
which the former - and much-ma- 
ligned - England soccer manager, 
Graham Taylor, could only dream. 

There were hints of catastrophe 
in earlier matches. The wide but 
insubstantial victory over Ireland 
at Paris's Parc des Princes in the 
first match raised doubts. Defeat by 
Wales in Cardiff rang alar m bells. 
*Le feu rouge.” shouted L’Eguipe 
on its front page. This play on 
words meant either Welsh fire or a 
red traffic tight After that match, 
coach Pierre Berbizier commented: 
“I preferred today's defeat to the 
victory of two years ago. I know 
haw we were beaten, but not bow 
we won last time here.” 

That was a hostage to fortune. 
For, by the time En gland arrived in 
Paris, the press wanted no more 
understandable defeats but a vic- 
tory. Especially against a side that 
always beat them, especially at 


home. 

Disaster struck: France were 
beaten 18-14. On page one, L’Equipe 
shouted: “Change all this for us." 
Page two was headlined “The great 
fiasco”, while the newspaper 
declared the French XV to be brain- 
dead on page three under a head- 
line that read: “The encepbelogram 
is flat” 

Midi-Olympique was relatively 
phlegmatic: “France is passing 
through its worst crisis since the 
second world war," it said, before 
asking: “How has France fallen so 
low?” It then opened what it called 
“The burning dossiers of tricolour 
rugby." 

In tbe nation's rugby capital, 
Toulouse, La Dep&che du dimanche 
began its report: “This new defeat 
by England undoubtedly marks the 
end of a team which, decidedly, has 
nothing more to give, not the 
savoir-faire, nor the indispensable 
success at this level.” 


It concluded: "At the end of snch 
a mediocre, yet poignant, match, it 
Is not appropriate to put forward 
ideas; a delirium of destruction 
cannot be avoided.” 

The “poignancy” of the match 
came in the way England played. It 
consisted of everything that 
arouses Gallic scorn, admiration 
and resentment England were bor- 
ing, disciplined, resolute, unimag- 
inative. a former national fullback. 
Pierre ViHeprrax, wrote in Libera- 
tion: “The English had no doubts, 
even when France were dominant 
They played on a tactical base 
which they fully mastered ... a 
game which brought together their 
culture and education.” 

In a typically Marxist interpreta- 
tion of rugby, VtUeprenx concluded 
that what counted was a unity of 
practice and tactics - something 
the French lacked entirely. 

There is a new team for today 
which excludes Olivier Roumat the 



captain against England, Wales and 
Ireland. L 'Equipe proclaimed: “It is 
not yet the Regency, nor is it the 
end of the Empire.” There has been 
no “delirium of destruction,” 
though. Thierry Lacroix, whose 
missed kicks probably cost France 
victory two weeks ago, said he was 
prepared for anything. “We've been 
slaughtered by the press and televf. 
sion all week,” he said. 


But the critics are keeping their 
powder dry. After all, if Wales beat 
England, as they will, and France 
beat a Scottish XV missing its best 
player, scrum-half Gary Arm- 
strong, as they will, France will 
finish second this afternoon. Not 
bad for a side “without aggression, 
wifi or imagination”. 

■ James Morgan is economics corre- 
spondent oj the BBC World Service. 






< 


The Five Nations’ Championship /Derek Wyatt 


Tennis/ John Barrett 



NeH Jenkins: pointing the way for Wales Mnwn 

England to triumph on a mighty occasion 


Smiles in the 
sunshine state 


oznething is wrong. Some- 
thing is going right with 
English sport 
First, Terry Venables’ 
appointment is applauded, second, 
Ray Illingworth comes in from the 
cold to take the reins of the 
England cricket team and, late yes- 
terday. the Rugby Football Union 
continued this uncanny run of com- 
mon sense by appointing Jack Row- 
ell. the Bath coach, to be the new 
guru for the national side 

The announcement was expected 
on Monday - but its timing gives 
him the chance of being fully 
involved with this afternoon’s 
game. 

Rowell's appointment will be 
widely welcomed, except perhaps by 
a few die-hards within the RFU 
executive committee. Rowell's pre- 
cise role will need to be carefully 
defined over the coming months. He 
may want to merge the role of man- 
ager and coach- 

Dick Best is the present England 


coach, but the jury is out on his 
contribution to the England set-up 
over the past three years. He is an 
enlightened coach but his work for 
England has gone largely unno- 
ticed. Geoff Cooke has retained all 
the power in selection. 

In particular. Best lost the case 
for Stuart Barnes, the Bath captain, 
as the pivot on which to base his 
England team. Without Barnes, a 
running outside-half, Best lost the 
architect of his tactics. 

Instead, we have -had a diet of 
unrelieved boredom from the 
England camp, the win against the 
All Blac ks notwithstanding. 

The England team, instead of 
building another dimension to their 
game, as the Australians did 
between their Grand Slam in 1984 
and their winning of the World Cup 
in 1991, has gone from rags to riches 
to rags in an identical period of 
time. And, in between, France and 
now Wales have made great strides 
to catch up. 


Cooke's control of the England 
team was suffocating the side. He 
needed to relieve Carling of the cap- 
taincy and allow Dean Richards, 
one of his bete-noires, the chance to 
lead tire side until after next year’s 
Rugby World Cup. 

Rowell's appointment may lead to 
a shake-up in the En gland taam. He 
will probably replace Andrew with 
Barnes and ask Will Carling to 
stand down as captain. He would 
also call on all his powers to ensure 
a fit Jeremy Guscott at centre. If 
one player has been missed this sea- 
son, it has been Guscott. 

We might just have reached the 
same conclusion over gifted Welsh 
centre Scott Gibbs who has also 
been absent for the tournament. 
Without hfrn though, Welsh back 
play has matured and developed 
beyond expectations. 

This is not just because of Neil 
Jenkins' coming of age, but because 
of his right-hand man in the centre, 
Nigel Davies. For me. Davies has 


been the player of the champion- 
ship. Unsung and largely unheard 
of, he missed the Canadian debacle 
in November and, through injury, 
the French game four weeks ago. 

But Davies has an acute tactical 
brain, safe hands and is a sound 
kicker. Above all, he has one excep- 
tional gift , he makes time for him- 
self. The Llanelli player win have 
his toughest game today against 
Carling. It will be one to savour. 

Romantics will want a Welsh vic- 
tory. After all, there were supposed 
to be only two teams in this cham- 
pionship, England and France. My 
how we all got that wrong. 

Commentators are already con- 
cluding that Wales' chance of ach- 
ieving the Grand Slam has come too 
early for the team. This is nonsense. 
Nothing comes too early in sport 

Nevertheless, this is a wounded 
England side and there is nothing 
more dangerous. They played so 
abjectly against Ireland that they 
stiff have something to prove to 


their loyal supporters. 

The tide has developed a symbi- 
otic relationship with them and 
they will want to provide a game to 
talk about and a game with which 
to thank Geoff Cooke for his ster- 
ling work over the past seven years. 

The game again hinges on the 
play of the respective back-rows. 
Dean Richards has that uncanny 
knack of always being in the right 
place at the right time. His presence 
enables Ben Clarke to play a 
slightly wider game, one that best 
fits the likes of Victor Ubogu and 
Tim Rodber. It is their pace over the 
ground - which the Welsh lack - 
where the game will be won. 

1 do not see England being unduly 
bothered about tries in spite of the 
media interest They will want a 
win and will steel themselves to 
ensure it is by the requisite 16 
points so that they can claim the 
championship. I believe they will do 
it. Twickenham is again host to 
another mighty occasion. 


I t was a poignant moment in 
the deserted stadium that 
bright Florida afternoon last 
January. “Here dad, you’d bet- 
ter hit the first ball, you've waited 
long enough!” Trey Buchholz tossed 
the balls across the net to his 
father, Butch, who caught them and 
swung his racket to inaugurate a 
new era at The Crandon Park Ten- 
nis Centre in Key Biscayne. 

If the former US No 1 was smiling 
with quiet satisfaction, one could 
understand it. For him, this was the 
realisation of a 30-year dream. It 
was also the end of a five-year legal 
struggle against the Matheson fam- 
ily (who had sold the 900-acre site to 
Dade County in 1940) and local 
opponents who were worried that 
the construction of a 14,000 seat sta- 
dium would bring a host of noisy 
sporting events and concerts to dis- 
turb tbe area's tranquillity. 

The political and environmental 
battle has cost millions in legal fees. 
Butch and his brother Cliff owe 
more than $2m while Dade County 
has run up an even larger bill. “But 
It was worth it,” Buchholz insists. 
“Back in the 1960s when I was part 
of (Jack) Kramer's professional 
group that was outlawed by the 
amateur game we used to sit 
around and look to the day when aD 
the amateurs and pros would be 
competing together in a great tour- 
nament managed by the players. 
While our stage in those days was 
either a hangar or an old exhibition 
building, we dreamt of one day stag- 
ing a fifth Grand Slam played in a 
super stadium somewhere.” 

It is a pleasure to report that the 
dream has been realised- Gone are 
the makeshift tents and trailers 
that have housed players, media 
and officials since that first Upton 
Championship back in 1985 at the 
Laver Resort in Delray Beach. In 
their place, on a site that was once 
a rubbish dump, has risen a $20m 
state-of-the-art facility containing 
comfortable quarters for everyone, 
including the public, who have been 
a ttending this year’s 10-day tourna- 
ment in record numbers. Further- 
more. for the remaining 50 weeks of 
the year the public will be able to 
book the courts at Crandon Park for 
their own private battles. 

The tournament, a partnership 
between the ATP Tour, the Wom- 
en's Tennis Association, Dade 


County and the Buchholz brothers, 
may not be the fifth Grand Slam 
but it offers prize money of S3 .3m. 
Sponsorship provides 60 per cent of 
the income, the sale of boxes and 
ordinary tickets generates 30 per 
cent Television rights, retail sales, 
concession income, programme 
advertising and sales provide the 
balance. 

An independent Economic Impact 
Study, conducted by the University 
of Miami and the Miami Convention 
Bureau, has estimated that The Lip- 
ton. with its attendance of more 
than 200,000. generates $103m in 
annual inwwne for the South Flo- 
rida area. 

A new dimension has been added 
to the venue by the establishment 
of the USTA's National Training 
Department at the site under the 
direction of Ron Woods and former 
Wimbledon and US Open champion, 
Stan Smith. The director of coach- 
ing is former Tour player Nick Savi- 
ano who I have admired for his ded- 
ication in instilling a professional 
approach among the young Ameri- 
can players he has guided on over- 
seas trips. 

“We have a perfect setting here,” 
says Saviano. "Eventually there 
will be four red day courts like the 
ones in Europe, four green Ameri- 
can clay courts, plus two grass and 
17 hard courts. We shall at last be 
able to prepare our players prop- 
erly, wherever they are bound." 
Saviano recognises that the young 
Americans have fallen behind the 
rest of the world. “There was a time 
when the top Americans in their 
age groups were automatically as 
good as anyone in the world. That 
is no longer tbe case.” 

This week Andre Agassi has been 
setting the pace. His straight sets 
wins over two former world No Is, 
Boris Becker and Stefan Edberg, 
have confirmed the effectiveness of 
the wrist surgery that he resorted 
to after an injury plagued year in 
1993. “We are assessing it week by 
week", he said. 

The on-court Agassi certainly 
looks sharp and tost, more like the 
man who so delighted us at Wimble- 
don in 1992. “It's definitely coming 
along much quicker than I expec- 
ted”, he said. “My fitness speaks for 
itself." 

The Agassi '94 should prove a 
very tasty vintage. 



Motoring/Stnart Marshall 


The Java - in tune 
with the times 


^ he parallels are stri- 
king. The Bentley 
Java concept took the 
Geneva motor show 
ra this yean the Aston 
DB-7 prototype was the 
on of tost year's show, 
are the smallest models 
e from makers which for 
have produced nothing 
ry large land even larg- 
iiied) sporting saloons 
upes. They are in time 
io environmental aware- 
our times. Even though 
at buyers rich enough 
luive to worry about fuel 
option, they are eco- 
tier than traditional 
ys or Aston Martins, 
it 087 costs about half 
:h :is a V* Aston Martin 

DUila. , . . 

i-Royw Motors (which 


motors 


JCMCA London' S 
D i .i I i ' ' 0 1 

T ij I HO i =03 1 


Lnrgstl 

LEXUS 


owns and makes Bentleys, too) 
set the Java concept in motion 
nearly two years ago. It was a 
co-operative project with 
Design Research associates, a 
small but intemationaUy- 
ren owned British industrial 
design and styling house. 

Rolls-Royce will spend the 
next year discovering if the 
Java appeals to enough people 
who already own, or are likely 
to buy. its standard-sized cars 
to make the Java's further 
development and eventual pro- 
duction worthwhile. Than, it 
will have to find the money. 

Here, the parallels start to 
diverge. Aston Martin had the 
good fortune to be taken over 
by Ford at a critical time in its 
history. With Ford money and 
engineering resources, plus an 
off-the-shelf engine from Jag- 
uar (also a Foid subsidiary), 
the DB7 moved so smoothly 
from prototype to small-scale 
production that it will be on 
sale later this year. But the 
Bentley Java Is only at the 
start of the development curve. 

The truly beautiful car 
unveiled at Geneva on press 
day last week looked as if it 
could be driven out of tbe Pal- 


expo building and on to the 
sun-drenched autoroute to Lau- 
sanne. In troth, it was not even 
a runner. The 3.5-litre, V8, 
twin-turbo engine due to power 
it is still being developed by 
Rolls-Royce's associate com- 
pany, Cosworth Engineering, 
of grand prix raring fame. 

If Rolls-Royce decides to go 
ahead, it would be 1999 before 
the Java could reach the show- 
rooms. And where would the 
money come from? Perhaps it 
is no more than a straw in the 
wind, but few visitors to the 
Rolls Royce/Bentley stand 
were taking a closer interest in 
the Java than Bemd Pischets- 
reider, BMW's chairman. 

Were Rolls-Royce to link 
with another car-maker, BMW 
is considered the likeliest part- 
ner, the two firms have been 
talking informally for several 
years. With Rover, the biggest 
British-owned manufacturer 
swallowed already, BMW 
might well fancy the most 
famous one for dessert. 

At the opposite end of the 
market was another 
eye-catcher. Ford's hot pink- 
coloured Ka. which is not 
shorthand for a motor car but 



This to Ka, Ford’s idea of the shape of small cars to come 


the name of an ancient Egyp- 
tian spirit. The Ka, smaller 
than a Fiesta, has a very long 
wheelbase to maximise interior 
space and ride comfort, curvy 
body panels, and all the latest 
safety features. Ford claims it 
will be fun to drive - some- 
thing that first-time buyers 
and women drivers are said to 
look for when choosing a car. 

Spaciousness is one of the 


features of Audi's mould-break- 
ing AS luxury saloon, which 
has the longest interior of any 
car in its class. Two versions of 
this trend-setter, which is 
made almost entirely from 
light alloy, go on sale later this 
year. 

The 2J8-Iitre, 174 horsepower 
V6 has front-wheel drive and a 
five-speed manual gearbox 
(four-speed automatic an 


optional extra); the all-wheel 
driven, 4.2-litre, 300 horse- 
power V8 quattro comes only 
with Tiptronic transmission. 
Tiptronic, used first by Por- 
sche, combines the best fea- 
tures of manual and automatic. 
You can leave the selector 
lever alone and drive the car 
like any other automatic, or 
shift gears clutchlessly for 
yourself. 


The Audi A8 promises to 
compete head-on with BMW's 
soon-to-be-unveiled 7-Series as 
weQ as the perennial best-sell- 
ing luxury car, the Mercedes- 
Benz S-Class, which was 
shown with some minor cos- 
metic changes to make it look 
a little smaller. Big, it seems, is 
no longer beautiful, even 
among German buyers of top 
management cars. 


The real 
thing 

F or my drive to 
Geneva this year, I 
chose a Mercedes 
C-250 diesel auto- 
matic. It gave me 34.25 
miles per gallon (8 1 A 00km) 
over almost 1,200 miles 
(1.932km) of fast autoroute 
cruising, leisurely driving 
on near-deserted roads fol- 
lowing the canal de Bour- 
gogne, two crossings of the 
Col de la Faucille, and jos- 
tling with Geneva’s traffic. 

Without retracting a word 
of my criticism of the nasty 
trim materials used in some 
C-Class cars in a bid to 
appeal to younger buyers, 1 
have to say my leather- 
trimmed C-250 looked and 
felt a real Mercedes. It gur- 
gled softly at start-up from 
cold, but then ran so quietly 
at anything between SOmph 
and lOOmph (97-161kmh) 
that one forgot it was a die- 
sel. 

One of the most agreeable 
aspects of driving a diesel is 
the way they reward road- 
craft. By looking as far 
ahead as you can, and 
anticipating what is there, 
you cover the miles more 
smoothly and far more eco- 
nomically than any hot-shot 
driving a petrol-engined car 
on the accelerator and 
brake. And you arrive 
unstressed. 



> 







Comment /Brenda Polan 

Baby dolls with a tough message 


F ashion, the source of 
much innocent pleasure, 
is capable of arousing an 
extraordinary' amount of 
displeasure. It has always been so. 
Moralists throughout the ages have 
predicted the downfall of civilisa- 
tion on the grounds of an excess of 
sequins, five-inch heels or stressed 
whalebone. 

But their homilies were never as 
disturbing as the current outpour- 
ings of gibberish to which fashion 
is falling victim. 

Possibly the worst example is the 
theory which is glibly advanced for 
fashion's current preoccupation 
with a waif-like body and clothes 
which, in their brevity and their 
winsomcness, remind some com- 
mentators of the children’s depart- 
ment at Harrods. 

This style, says the new genera- 
tion of style police, is paedopbilic 
and utterly to be deplored. Their 
analysis does not go beyond this 
catchword but it is such a loaded 
word that it hardly needs to. 
Headlines and hints are quite 


enough to communicate the horror 
and revulsion readers are intended 
to share. Do those commentators 
understand the term they are 
using? Or is it just a smart word 
with lots of syllables that gets their 
story on to the front page. 

Some certainly do and one can 
only assnxne that they do not 
understand what they sec on the 
catwalks of international fashion 
designers and, more importantly, 
ou the streets of oar cities. 

We have just emerged from one 
of the most stultified and stultify- 
ing periods of fashion history, a 
period in which the ideal woman 
was trussed up in tight, rigidly 
structured clothes which projected 
a self-conscious, mature sexuality. 


Paradoxically, women did not feel 
they could be taken seriously In the 
workplace, never mind the boudoir, 
if they were not displaying well- 
propped cleavage and lengths of 
sheer-stockinged leg atop sharp sti- 
lettoes. 

The most that could be said for 
tills swaying, hourglass-shaped par- 
ody of what a transvestite thinks a 
girl should look like was that it 
took the most unambiguously obvi- 
ous symbols of femininity and 
transformed them into aggressive 
weapons. 

Traditionally regarded as a way 
of dressing which pleased men and, 
therefore, placed the wearer in a 
dependent, eager-to-please role, it 
was transformed into a way of 


dressing which intimidated men 
and put women in control. The 
moth to the flame method of 
manipulation after Alexis Colby. 

Many women hated it and 
refused to play. Thoughtful ana- 
lysis of fashion were torn between 
approving of It - because it obvi- 
ously made women feel empowered 
- and disapproving of it - because 
it made them look like cartoon- 
character tarts. 

Bnt there was another style of 
dress running in parallel with the 
executive tart and It was highly 
subversive. It consisted of leggings, 
a decency preserving top. and big, 
big boots; it looked extraordinarily 
like the costume for a particularly 
competent principal boy. 


The women, usually but not 
always younger women, who 
adopted this style swaggered rather 
than minced. While they sat with 
their legs comfortably hitched over 
the arm of the chair, their micro- 
skirted sisters wriggled uncomfort- 
ably, attempted to cross theirs 
seductively and prayed their knick- 
ers were not showing. 

As we all know, the principal boy 
Is an innocent, virtuous, straight- 
forward kind of character. The 
baby doll look which young women 
are enjoying at present is a simple 
development of both the look and 
the mood it represents. It is about 
innocence rather than experience, 
suggestion rather than insistence. 
It is tentative, approachable, youth- 


ful, instinctive and free-spirited. 
Unlike the principal boy look 
which is gamine, androgynous and 
deliberately jokey, it is Incontest- 
ably feminine. 

But no modern young woman 
wants to look like a real baby doll. 
This is a baby doll with an edge. 
She may be an innocent, bnt she's 
nobody’s fool. While the clean sim- 
plicity of her droopy little slip of a 
frock may tell some of the truth 
about her, the whole story is a lot 
more complicated. 

So she wears her hair sticking up 
in rats* tails that have taken hours 
to construct and she either par- 
odies the executive tart’s stilettoes 
by wearing them with ankle socks 
or climbs Into the biggest, botches! 


pair of mountaineering boots she 
can afford. 

The details may be different but 
in Its rejection of knowing ultra- 
femininity, the baby doll Is very 
closely related to the 1960s mini in 
a way that the 1980s mini was not 
As Marv Quant said at the time, 
the mini-skirted swinger was try- 
ing very hard Indeed not to look 
like her mother. Consequently, she 
time-locked herself, metaphori- 
cally. into late adolescence. 

Bnt she did not do it to titillate 
paedophiles; she did it to distance 
herself from preceding generations 
and to identify with her own. Simi- 
larly, today’s skinny-shanked baby 
dolls do not imagine they arc giv- 
ing pleasure to anyone who Is sexu- 
ally attracted to children. 

But she does hope she will shock 
and alienate the complacently mid- 
dle-aged who think they know what 
an attractive female should look 
like. And she hopes her message of 
innocence and toughness, wariness 
and openness, will speak to the 
young men of her own generation. 



No match for a pair of shoes 


Stand out in a crowd with odd footwear. Lucia van der Post 
reports on a Spanish designer and producer with an original 
range - from the asymmetrical, to more classic styles 


A nyone accus- 
tomed to buying 
shoes that are 
absolutely identi- 
cal has probably 
not stopped to consider 
whether there is some immuta- 
ble law behind this perfect 
symmetry. 

Since our childhood, shoes 
have come in pairs and the 
likelihood was that they would 
do so Tor ever more. 

But Camper, a Spanish com- 
pany based in Majorca, decided 
to look at the matter differ- 
ently. “Why." it asked, "is that 
throughout history a pair of 
shoes has always been made 
symmetrical, the left exactly 
the same as the right?" 

And it followed this up with 
another question: “Why can’t a 
pair of shoes be disparate, 
asymmetrical and the left dif- 
ferent from the right?" Twins, 
after all, are not necessarily 
identical and sometimes even 
scarcely resemble each other. 

it went on to point out that 
the notion of asymmetry has a 
distinguished architectural lin- 
e-age - from Gaudl and Le Cor- 
busier in the Gelds of architec- 
ture to Vionnet. Miyake. Yohji 
Yamamoto and Rei Kawakubo 
in the Geld of fashion. 

From there it was a short 
step to an exercise in exploring 
the asymmetrical pairs of 
shoes, some of which are pho- 
tographed here. The kinship 
between the shoes is obvious - 
there could be no mistaking 
that they belong to the same 
pair and yet each left is subtly, 
and sometimes not so subtly, 
different from the right. 


For those who find this 
breaking or the established 
rules of footwear a trifle alarm- 
ing, Camper does produce 
other ranges which, though 
less innovatory, are just as 
interesting. 

Its CamaleOn line is a 
self-conscious recreation of a 
peasant shoe, the sort worn by 
country people all over 
Majorca. The perfect shoe for 
the ecologically concerned. It is 
made from unusable off-cuts of 
leather, worn out tyres and 
strips of canvas. 

It also occurs to me that it is 
the perfect shoe for those who 
dislike anything that looks too 
new - these shoes look as if 
they have already been to 
some interesting places before 
they leave the shop. For those 
who do not lead the life of a 
country peasant these shoes 
are the sort to take on holiday, 
to beaches, to Majorca perhaps. 

Perfect for those who spend 
summer holidays on beaches 
or in hot climates is the Terra 
collection. Based on the 
old-fashioned espadrille It has 
been updated by dyeing the 
canvas with colours and pat- 
terns and using new materials 
(rubber and natural rope) for 
the sole which give it greater 
strength without detracting 
from the original “look". 

Camper also has a range for 
real traditionalists - the Cartu- 
jano which aims to marry tra- 
ditional Spanish styling with 
fine quality leather. There are 
soft loafers, brogues, boots - 
the whole gamut of classic 
footwear. 

The Camper range can he 


found at Paul Smith of Floral 
Street, Covent Garden, London 
WC2; Nichols of Birmingham; 
Matches of Wimbledon; Limeys 
of Leicester. Sheffield, Derby, 
Nottingham; The Natural Shoe 
Store. 325 Kings Road. London 
SW3; and 21 Neal Street, Lon- 
don WC2. Prices range from 

£45-£80. 


If your tastes are more clas- 
sic still it might be worth 
looking at the Para boot which 
has similarly romantic origins. 
Camper shoes are made using 
traditional methods in little 
workshops all over Majorca, 
while the Paraboot comes from 
the small village of Izeaux in 
the Isere region of France. The 


original footwear produced in 
Izeaux was practical and 
sturdy, shoes for the tough 
farming life, often made in the 
farmers' own homes with 
crude tools. 

However. Remy Richard- 
Pontvert, a local cobbler, 
began to visit fine Paris bou- 
tiques and saw that quality 


and finish were important if he 
wanted to expand and sell to 
more sophisticated shoppers. 
While in America he saw rub- 
ber-soled shoes. He went 
straight home and developed 
and then patented his own rub- 
ber sole from which evolved 
the Paraboot (the rubber came 
from Para in Brazil). 



In France they are as 
well-known as Church's are in 
Britain. They are made from 
fine frill-grain leather and all 
the stitching is still done by 
hand. They have only fairly 
recently been on sale in the UK 
but have already become much 
sought after. 

Most famous shoe in the 


range is possibly Michael, a 
soft casual lace-up but there 
are loafers, brogues, boots, golf 
shoes and boat shoes. Prices 
range around £106 a pair and 
the shoes can be found In good 
men’s shoe shops, including 
Office Shoes, Jigsaw for Men, 
Woodhouse and Selfridges in 
London. 


U ntil now Fendi, the 
Italian fashion 
house, has been 
known mainly for 
Us expensive-looking luggage 
(distinguished as is customary 
in these circles by initials, in 
this case, a reversed double F) 
and its swankily extrovert fur 
colIccLion. 

It is also famous, in Italy at 
least, for being run by five go- 
getting sisters - Anna. Carla, 
Franca, Alda and Paola. 


Furniture from the formidable Fendis 

Lucia van der Post on the Italian fashion house's designs for the home 


In 1925. the first Fendi furs 
and small leather purses were 
made by Adele Fendi in a 
small workshop in the Via del 
Plesbiscito in Rome. Though 
Rome is filled with fine cre- 
ators of desirable leather 
goods, the Fendis nonetheless 
managed to attach to theirs 



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U Above: Dombdana - a chair 
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□ Right the Famese range - 
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the kind of aura that turned a 
piece of Fendi luggage from 
being just a handy way of cart- 
ing about belongtngs into a 
grandiose statement about 
wealth and taste. 

Their fare. too. have always 
had about them a kind of 
Roman swagger - at a time 
when other designers were 
turning out furs that were dis- 
creet and classical. Fendi 
made them fun (the in-house 
catch-phrase for what they did 
was to “demystify”) which is 
why the choice of Karl Lager- 
feld in 1964 as the designer of 


% lin.i * • ktj . • 

VV. ■ 


the for collection was so 
inspired. 

It is true that these days his 
conscience about using fur is 
troubling h im and he has gone 
a bit sober on them but 
through most of ids years as 
their designer be has kept 
their collection right at the 
entting-edge of the pelt 
trade. 

From furs and leather 
parses Fendi went on to pro- 
vide more goodies for those 
with Fendi tastes - ready-to- 
wear clothing, scarves, ties, 
gloves, pens, stationery, shoes. 


lighters . . . name a life-style 
accessory and Fendi will have 
provided it 

Every proper fashion house 
these days seems to feel the 
need to market a fragrance, 
and so the Fendi fragrance for 
women was launched shortly 
after the one for men. 

You might have thought the 
Fendi world was now com- 
plete. Yon would have thought 
wrong. From the concept of 
dressing the woman, it is but a 
short step to dressing the 
home and this is what Fendi 
proposes to do. 



It has expanded Into what, 
for lack of more enterprising 
words, I can only call the life- 
style arena - Fendi fans need 
no longer surround themselves 
with furniture of dubious lin- 
eage. 

Those who relate to the 
Fendi label can sit in Fendi 
chairs, lounge on Fendi sofas 
and eat off Fendi tables. 

Fendi Casa, as the furniture 
line is called, is designed by a 
group of in-house designers 
but, as is the tradition of the 
house, one of the formidable 
sisters, in this case Anna, 
supervises it 

The best thing to be said 
about the range is that it looks 
unquestionably Italian. But 
this is not the rtaly of the cor- 
netto, of Neapolitan arias, 
Venetian gondolas and pizze- 
rias, but the quiet dignified 
Italy that exists behind the 
shutters in even the busiest 
cities. 

It reminds one of the shaded 
sitting-rooms in tall Milan 
houses, of quiet formal dining- 
rooms in Roman apartments. 
As the photograph of the sit- 
ting-room shows, the simple 
lines of the room are never 
doll, the lack of clutter gener- 
ates a feeling of great strength 
and tranquillity. 

The design lineage, which 
the house of Fendi openly 
acknowledges. Is Biedermeier, 
fin-de-siicle Vienna and the 
best of Art Deco. 

Not all the pieces are to my 
personal taste - a few suffer 
from the over-heaviness of line 
common in bourgeois Italian 
homes - I like best the strong 
chair photographed here 
(Domiriana) and the less for- 


simply bathrooms 


Camplau Design & installation Senrica 

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mal range known as Esposi- 
tore. 

Here there is little that is 
startlingly new bnt much that 
is pleasing. The range depends 
upon using very chic fabrics hi 
a soft, draping, informal way. 

Though today the idea of 
abandoning stiff upholstery in 
favour of loose draped fabrics 
may seem old-hat, when Fendi 
first launched it in 1988 it was 
quite new in its field. The 
notion that very expensive fur- 
niture might borrow from the 
slightly Bohemian aesthetic of 
the Hippy seemed, at the time, 
quite revolutionary. 

Instead of taking the Indian 
bedspread or the Bedouin rug, 
however, Fendi has taken 
severely striped fabric and 
used it to drape sofas, cover 
tables, upholster steamer 
chairs, directors’ chairs and 
folding tables. The effect Is 


nonchalant and offers the sort 
of furniture that could fit into 
almost any home from the for- 
mal to the most laid-back. 

Though Fendi Casa has been 
aronnd for a little while in 
Italy, it is only for the first 
time becoming available in the 
UK. It Is on sale, exclusively to 
order, through Charles Page, 
61 Fairfax Road, Swiss Cot- 
tage', London NW6 4EE (tel: 
071-328 9851). 

In the shop there are a few 
examples of the range to be 
seen and tested as well as sam- 
ples of the whole fabric range. 
Every piece of furniture can be 
covered in any of the fab- 
rics. 

Prices are not low - fine 
leather and high-quality fab- 
rics are used throughout. 
Domiziana, Tor Instance, the 
chair photographed, costs 
£1.435, while the Farnese 
range of chairs and sofas ran 
at about £985 for a single 
chair, £1,930 for the two-seater 
sofa and £3,050 for a three-sea- 
ter sofa. 


On Saturday, April 30 th 

The Weekend FT will publish its annual 

CLOCKS, WATCHES & 
JEWELLERY REPORT 

This will review the latest models and ideas at 
the Basle Fair, watches as an investment and 
as fashion accessories, together with the 
increasing demand for diamonds and other 
jewels.... 

For a copy of the synopsis 
and/or to advertise in this feature, 
please call: - 

Genevieve Marenghi on 071-873 3605 
or Julia Garrick on 071-873 4664. 


s, 


1 











Beautiful Swiss wines to yodel about 


I f you go to the trouble of 
tracking down a bevy of bean, 
tiful wines made in minute 
quantities with impeccable 
fastidiousness in a building that 
looks like a Swiss cowshed, you 
expect an exclusive story. But the 
longer I spent with Daniel Ganten- 
bein, the more I realised I was 
treading in the footsteps of wine 
luminaries by the score. 

Paul Draper, master winemaker 
of California’s Ridge Vineyards, 
bad apparently visited Daniel in 
this corner of eastern Switzerland 
last summer. The pair communi- 
cated in Italian, familiar to Daniel 
from his holidays in Piedmont (he 
rents a small vineyard to Elio 
Altare). 

Ganteubein wines may be diffi- 
cult to track down, even in Zurich, 
a few miles to the north-west, but 
they can be found on the list at 
Piedmont's famous Da Guido res- 
taurant, as well as in the more 
notable local restaurants, and those 


immediately north in Liechten- 
stein. They may also try to export 
to the OS. 

When I raved about the quality 
of his Riesling-Sylvaner 1992, 1 was 
told that that was the wine of 
which Ernst Loosen, whizzkid of 
the Mosel, had ordered a case. 

And in Daniel’s personal wine 
cellar, hollowed out of the slate 
underpinning his native village of 
Flfisch, were all the names one 
would wish for oneself: Bordeaux’s 
great names, Ponsot 1990 red bur- 
gundies, a tranche of Domaine de la 
Roman£e-Conti, Gmgal, Ridge, 
a gaggle of bottles from the Mosel’s 
Grosse Ring aristocracy. 

Daniel is the only producer of the 
Grosse Ring’s own raw material in 
his area. Tor me Riesling, with 
Chardonnay, is the white grape 
variety.” 

This small wine region in east- 
ern, German-speaking Switzerland 
is the vinous heart of Granbfinden 
canton, the Herrschaft, which pro- 


duces predominantly simple, sweet 
i&h Blanbnrgunder (the Pinot Noir 
of Burgundy, of which the Mari- 
afeld done is widely revered hare) 
together with Alsace’s white grape 
varieties, Mufler-Thurgau and Com- 
pleter, an eye-watering local curios- 
ity. 


The local market (truly local; the 
wines are almost unknown in 
Freudtspeakhig Switzerland) sus- 
tains relatively high prices here. 
Vines are planted amid pasture and 
all sorts of crops, but viticulture is 
the most profitable agricultural 
activity in this dramatically beauti- 
ful corner of Switzerland, through 
which thousands of skiers hurtle 
each weekend en route for Klosters 
and Davos. 


The twinkling, energetic Daniel 
was, until relatively recently a 
mechanic, and is still a meticulous 
craftsman, whether in winemaking 
or restoring his ancient farmhouse. 
After his wife, Martha, had quali- 
fied in viticulture, he studied wine- 
making, both at the local wine 


school in Widenswil and nosing 
around producers he admires. 

Since 1980 they have farmed a 
just-manageable total of four hect- 
ares (10 acres) of vines, on well-ex- 
posed slopes below a vertiginous 
cliff face that leads the way to the 
Vorariberg. The land is dissected 
by narrow open lanes, a tractor 
wide. 

Why are Ganteubein wines such 
a discernible cut above the rest? 


There is his infatuation with, and 
exposure to, the fine wines of the 
world (last year he and some 
friends had organised a wine tast- 
ing which culminated in an 1899 
Montrachet). 

There is also his practical deter- 
mination to get things right, bot- 


tling, for example, much later than 
most The Hemduft is currently 
in the grip of barrique worship, not 
always to the benefit of the result- 
ing wines. 

Daniel has filled every corner of 
his winery with top quality French 
oak casta, but he experimented 
before deciding that double-sized 
barziqnes give the right wood-to- 
fruit ratio for his grapes. 

And then there are. of course, the 


grapes, and, perhaps most Impor- 
tantly, the low yields encouraged 
by Martha in the vineyard, modi 
lower than the Swiss norm. 

Ganteubein Blanbnrgunder 
tastes like serious red wine with a 
future, the product of a minimal 
intervention winemaking policy. 

It is not surprising that it com- 
mands a 50 per colt premium on 
the going rate far the region of 
SFrl2 (£5.60) per bottle. 

But the much rarer white wines 
are possibly even more distin- 
guished. Daniel’s Weissburgunder 
1990 was picked with a potential 
alcohol level of 13 per emit and was 
fermented cool and long - “just 
long enough to make people 
angry”. It is probably the best 
Pinot Blanc I have yet tasted. 

Perhaps it is inevitable that Dan- 
iel makes a Chardonnay (8Fr25 a 
bottle) but so does the rest of the 
world. 

But no tme else I know makes a 
rich, red wine like the mystery he 


produced at the end of my tasting 
in his house. 

It was very dark and dramatic- 
ally concentrated, with lovely spicy 
fruit Because we had been discuss- 
ing the new concentrators that are 
being employed in Bordeaux to 
make claret more intense, I half-se- 
rionsly suggested that this was the 
product of a concentrator. 

His eyes tit up. “Come downstairs 
and HI show you my concentra- 
tor," he smiled, scampering down a 
dark staircase to a whitewashed 
chamber, windows open to the til- 
lage street. 

Here were stacked wooden fruit 
boxes foil of Pinot Noir grapes dry- 
ing and sweetening, in imitation of 
the Italian passito technique used 
to produce Recioto and Amarone. 

This extraordinary hybrid of a 
wine sells at anction for more than 
SFr200 a half bottle, which must go 
some way towards subsidising the 
Ponsots resting quietly next 
door. 


‘Come downstairs and I'll show you my concentrator . ' Janets Robinson 
uncovers the secrets of some fine wines made in minute quantities 


Cookery /Philippa Davenport 

Qu’ils mangent 
de la brioche 


N o food is more 
fundamental in 
the west than 
bread. Those 
who go out to 
work are breadwinners. Lose 
your job and you may he on 
the breadline. Give os this day 
our daily bread, we pray. 

Bread was the trencher on 
which other foods were served 
before dinner plates were com- 
monplace. The rich who 
feasted on meat may have fen- 
ded their bread soaked In 
gravy but etiquette demanded 
that they left their trenchers 
uneaten. That way the bread 
might be given to feed the less 
fortunate. 

For centuries bread was a 
mainstay of meals for the 
majority. And it remains 
important in the thriftier cor- 
ners of Europe where tradi- 
tional bread soups and bread 
salads are much in evidence. 

Bread soups consist basically 
of dead and water plus a little 
of whatever local produce is 
plentiful and cheap. Hard 
rations you may say. Certainly 
such fere must seem monoto- 
nous if you have no choice but 
to eat it week in week out. But, 
for those of us who can dip 
into bread soups just occasion- 
ally - like Marie Antoinette 
playing at milkmaids - few 
foods seem more satisfying and 
soothing. 

Bread soups are basic and 
highly practical. Amazingly 
speedy one pot dishes - non- 
cook cooking - they are just 
right for the tired, the busy 
and the culinarily inept. Con- 
juring substantial comfort 
from very little they come to 
the rescue when Mother Hub- 
bard’s cupboard is bare and the 
houskeeping budget reaches 
rock bottom. More than that 
they can be utterly delicious, 
the individual flavours of an 
area giving each soup its terri- 
torial character, while plenty 
of soaked and swollen bread 
provides solid sustenance. 

In Tuscany 1 will happily eat 
Pappa col Pomodoro for sev- 
eral days on the trot: tomatoes, 
garlic, basil, olive oil and water 
simmered fruitily and thick- 
ened with generous c hunks of 


bread to make a pappy pink 
porridge. Alas this lovely bread 
soup does not travel well, rich 
vine-ripened tomatoes being 
beyond British reach. 

Mach easier to reproduce 
here is Mourtairol from south 
west France. For two people 
scald three ladles of pure rich 
chicken broth and enrich it 
with a pinch of saffron. Add a 
few meaty chicken scraps 
taken from the wings if you 
are feeling Indulgent, or a little 
snipped parsley, and pour the 
mixture slowly over 3oz of 
stale, roughly tom country 
bread encouraging the crumb 
to sop up as much of the fla- 
voursome liquid as it can hold. 

From the same region but 
simpler is Tourin. This con- 


Europe has a 
tradition of bread 
soups. Only in 
Britain have they 
been gentrified 
out of recognition 


sists of onions fried in duck or 
goose fet, seasoned and stewed 
in water, then poured over 
slices of bread, usually with 
the addition of an egg or two. 
When all the solids have been 
eaten and little liquid remains 
in the soup bowl, the spoon is 
laid down, a slurp of wine or 
something stronger is added to 
the bowl, and the remnants are 
drunk in one lively swig. 
Shades of the onion soup of 
porters at Les Halles, served 
complete with heartwarming 
rafts of cheese topped bread 
and peri* froa. 

Spain brings us Gazpacho. 
Today it is often tarted up with 
a stream of extravagant gar- 
nishes. The original peasant 
Hich would have consisted of 
little more than cooling 
draughts of water made fra- 
grant with a few crushed toma- 
toes, a little cucumber, garlic 
and crusts of bread. Much 
more refre shing . 

In Portugal, where 20th cen- 


tury sophistication seems to 
have made relatively little 
impact on borne cooking, tradi- 
tional country dishes that 
major on bread still abound 
and a love of acordas and 
migas remains widespread. 

Acorda Alentejana, which 
may or may not include eggs, 
is a great favourite. To serve 
two people, crush 2 garlic 
cloves with % teaspoon salt 
and soften them briefly in VA 
tablespoons olive oil. Season 
with pepper and 2 tablespoons 
chopped green coriander. Pour 
on lpt water, bring to a brisk 
bofl and poach 2 eggs in it if 
wished. Ladle the aromatic liq- 
uid over a scant 3 oz bread 
broken into rough chunks. Add 
the eggs and sprinkle on 
another tablespoon each of 
olive oil and chopped green 
coriander. 

Even the Swiss still serve a 
traditional bread soup; a few 
roots and leeks sliced, sweated 
and stewed in water until soft, 
thickened to a porridge with 
hefty chunks of bread and fin- 
ished with a grating of cheese. 

Only in Britain do bread 
soups seem to have been gen- 
trified out of all recognition, 
the bread reduced from central 
component to genteel garnish. 
The most bready offering you 
are likely to get here Is a mod- 
est spoonful of tiny, neatly 
diced fried bread croutons scat- 
tered over a light cream of veg- 
etable soup. Hardly substantial 
enough to keep up the strength 
of a two year old. 

I have, though, come across 
East An glian references to 
something called Suffolk Ket- 
tle Sop. Consisting simply of 
broken bread, a knob of butter, 
salt and pepper with boiling 
water poured over, this is said 
to cure a sore throat if drunk 
in bed. More medicinal than 
pleasurable? 

Elsewhere there are men- 
tions of an ancient Cornish 
bread soup known variously as 
Kettle or Kiddley Broth. Made 
with a little onion cooked in 
butter or dripping or with a 
few rashers of streaky bacon, 
then stewed with plenty of 
water (and sometimes a splash 
of vinegar), additionally fla- 


Appetisers/ Jill James 

A collector’s menu 


ing by the interest 
wb in the sale of the 
Elizabeth David's 
hen contents and 
lot more people are 
interested in the his- 
gd and drink. 
ver this demand Liz 
d her Austrian bas- 
'd. have set up Anti- 
Cookery Books at 
e in south London. 
jer bad the idea for 
my when she tnher- 
ary of 7.000 books in 
ie had to anction the 
hem and was only 
big back about 130 
ost interesting and 
to Britain - but the 
had bitten, 
spent most of her 
ibllshing - she is a 
t collector and ama- 


AUE 
PORT 
: CLARET 


IE ETC. 
PRICES 


1: 0473 626072 Fmc 0473 626004 
PImm pnono tor prteatteL^ 


tenr cook - Seeber feels that 
now is the time to have some 
fun by tnrnSng her hobby into 
an occupation. 

If, for example, yon are 
interested in baying Han nah 
G Lasse's The Art of Cookery. 
then Seeber has a couple of 
editions - including one 
printed in London in 1796 for 
six shillings — at £175 each. 

An early Isabella Beeton's 
The Book of Household Man- 
agement (Ward, Lock and 
Tyler), is priced at £110 and, 
for those who missed ont on 
the Elizabeth David memora- 
bilia auction, a first edition of 
English Bread and Yeast cook • 
erg, possibly David's best and 
most scholarly book, is avail- 
able in good condition for £35. 

Do not think you have to 
fork ont a fortune on early 


CLARETS AND 
VINTAGE PORTS 


WANTED 

We will pay auction hammer prices- 
Payne* mmfrae. neaKietepbooe 
Patrick wniriroon 071-267 1945 


^VlLMNSON VWTNERS LttltrED 

Fine Wins Merchants 
Consfendne W Lundflfl NWS SIN 


English cookery books - 
prices start as low as £5 or £6 
and c o v e r many national cui- 
sines. And there are some 
quirky tittle bargains In the 
list - Norman Douglas’s Venus 
m the Kitchen (Heinemaim) Is 
a mere £15 for the 1952 first 
edition. 

Drinkers need not feel left 
ont - first editions ranging 
from Hugh Johnson's 1971 The 
World Atlas of Wine (£25) and 
Andrt L Simon's The Common- 
sense of Wine (£6.50) are listed. 
■ A catalogue giving the 
prices, illustrators, publishers 
and detailed condition of each 
book can be obtained free from 
Liz Seeber, Antiquarian Cook- 
ery Books, 10 The Plantation, 
London, $E3 OAB. Tel: 
OS1-852-7S07. Fax:081-318- 
4675. 

Business is mainly by mall 
order but visitors are welcome 
by appointment. 




voured with marigold petals in 
one version, and poured over 
squares of stale bread for serv- 
ing, this sounded more promis- 
ing than the Suffolk cough 
remedy. I tried it but was 
unefaarmed. 

It struck me then that given 
Cornwall’s coastline, seafood 
might make an appropriate 
alternative to fet bacon. So I 
adapted the manuscript ver- 
sion of the recipe to suit my 
own whims. The resulting soup 
lacks historical accuracy of 
course but it tastes pretty 
good. 

TO make My Kiddley Broth 
for two people, first chop a 
shallot or two (or half a small 
onion) and sweat it for 5 min- 
utes in 2 tablespoons butter or 
olive oil. Add 1 teaspoon white 
wine or tarragon vinegar and 
let it bubble up vigorously. 

Add l A teaspoon salt, 2 
tablespoons chopped flat leaf 
parsley (or better stall corian- 
der leaves) and 1 pt water. 


Bring to the boil and boil for 
2-3 minutes. 

Add % lb cleaned mussels, 
cover and cook briefly until 
opened. Lift the cooked mus- 
sels from the broth and half- 
shell them, shell them com- 
pletely, or leave them as they 
are, as you wish. Then mix 
them with 3oz good quality, 
roughly torn bread and spoon 
the broth (but not any sandy 
mussel sediment) over them. 

Britain is of course meat-rich 
dairy country and we are noto- 
riously sweet-toothed. So it is 
hardly surprising to discover 
that, whereas other countries 
used their loaves to make sub- 
stantial water-based soups, we 
generally preferred to dunk 
our stale bread in milk to 
make puddings. 

Our recipe books are jam- 
packed with examples of this 
kind. Think of queen of pud- 
dings, quaking pudding, bread 
and butter pudding, brown 
bread ice cream, charlottes and 


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ambers, summer pudding, trea- 
cle tart, poor man’s bakewell, 
and the use of breadcrumbs 
instead of flour for superior 
steamed sponges. 

I can think of only one tradi- 
tional savoury way with stale 
bread that has survived here. 
Bread Sauce, made with 
creamy milk and butter, fla- 
voured with onion and cloves, 
thickened to a porridge with 
stale grated crumbs, is proba- 
bly as popular now with 
roasted poultry and game birds 
as it was in the middle ages 
when crumb-thickened, rather 
than roux based sauces, were 
the norm. 

Then there is the sweet 


equivalent of bread sauce; 
bread and milk, once a nursery 
favourite but largely forgotten 
today except for feeding pet 
hedgehogs. What a shame. 1 
loved it as a child and I love it 
now, a basic inelegant version 
of bread and butteT pudding 
but even more comforting by 
virtue of its instant, effortless 
preparation. It is the cure-all I 
turn to gratefully when low in 
spirits or poor in health, when 
bed, a good book and a hot 
water bottle beckon. Or I will 
eat it for breakfast on a cold 
morning. Any excuse will do. 

For Bread and. Milk for 1-2 
people, depending on the 
degree of comfort needed, 


break 3oz or so of chodah, bri- 
oche or other enriched white 
bread into pieces. Plain white 
bread will do at a pinch but 
bread and milk should be a 
treat. Butter the bread and 
sprinkle it with pinches of 
ground cinnamon. Add smears 
of honey if you like and put 
the bread into a bowl or bowls. 
Scald %-lpt Jersey milk with a 
shake of pure vanilla extract, 
sweeten it with 2 teaspoons 
vanilla sugar (or slightly less if 
honey is used) and add an 
optional teaspoon of brandy. 
Poor the flavoured milk over 
the bread and stir until the 
crumb sponges up and the but- 
ter is melted. 


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FINANCIAL TIMES WFF.iCENP MARCH 


WEEKEND FT 


PROPERTY 


F or lovers who can 
tryst the night away 

Gerald Cadogan suggests some discreet meeting places 



For £159,000: a converted coach house In Crescent Grave, London SW4 


T he distinguished, silver- 
haired man. accompanied by 
a beautiful young woman, 
entered the Kensington 
office of a well-known estate agent. It 
was December 19. “We're looking for 
a small flat." he said. “What can you 
show us?” 

At the fourth one, she put her arm 
through his and said: “Darling, I'd 
love this." He turned to the agent and 
offered almost the hill asking price. 
Then, he took the agent into a comer. 
Td like to give it to her for Christ- 
mas.” 

That same day, the senior partner 
of a smart London legal firm tele- 
phoned to confirm the deal and con- 
tracts were exchanged on December 
23 - to the delight of agent and ven- 
dor. who had achieved an excellent 
sale, and presumably to the joy of the 
pair ensconced in their “love nest”. 

The term appears to date from 1919 
when the Oxford English Dictionary 
defined it as “a secluded retreat for 
(esp. illicit) lovers”. But the idea must 
be as old as adultery - somewhere 
discreet to park the mistress or toy- 
boy for surreptitious visits. (Humour 
had it that this once used to be a 
special function of the cream-stuccoed 
villas in St John's Wood. London.) 

Such a place is not for couples liv- 
ing together day by day. even if they 
are not married. Either one lover lives 
there all the time, courtesy of the 
richer land usually older) partner. Or 
they meet there only for trysts. Such 
people make ideal residents. They pay 
promptly, are generous to the 
cleaning woman or housekeeper, and 
do not punish the place with the wear 
and tear of permanent occupancy. 

In the country, it is hard not to be 
seen conducting an illicit romance, 
but London has plenty of discreet 
properties. And the love nests are not 
always where you would expect. 

At one house In Kensington, west 
London, the man installed his mis- 
tress next door to himself and his 
wife. He then knocked a hole in the 
party wall and had a door fitted - in 
the back of the mistress's bedroom 
cupboard. 

So where to go? Always quiet. May- 
fair is a good meeting ground, as for- 
mer government minikers can reveaL 
24 Hays Mews, Wl, is a pretty city 
cottage with one bedroom, ideal as a 
pied-a-terre in town that doubles as a 
try sting place. Wetherell offers a 56- 


year lease for £197,500. 

More useful still might be 21a Brick 
Street, Wl: £225.000 freehold from 
Chestertons Residential. It is tucked 
away In a mews behind the Park Lane 
Hotel and has a garage for a quick 
getaway (or to hide the car from papa- 
razzi who know the number). 

On the other hand. Vivien Thomp- 
son, of buying agent Property Vision, 
points out the advantages of buying a 
small fiat in a gr and block. Ass uming 
a reasonable price, such a property 
can have all the advantages of a cen- 
tral location plus porters to keep 
watch when you are not there. 

MPs are often on the lookout for 
such a place, as they cannot afford to 
be too Car from parliament. But the 
problem is finding something close 
enough to reach, the House in time to 
vote after the division bell installed in 
the Oat rings - especially if there is a 
need to dress first. 

After all, there are only eight min- 
utes from calling a division to locking 


the lobby doors, and the traffic jams 
in central London are legendary. 
Walking or bicycling seem to be the 
answer. 

If there is nothing available in 
Smith Square. Lord North Street and 
Strutton Ground to the south and 
west of parliament, go north. 71a 
Whitehall Court, SWi, is a one-bed- 
room flat in a large block with porter- 
age which meets Thompson's criteria 
admirably. Knight Frank & Rutley 
offers a 34-year lease for £195,000. 

B elgravia, Kensington and Chel- 
sea are also too far for a quick 
dash to the Palace of Westmin- 
ster although they have plenty of 
small flats with one and two bed- 
rooms. Strutt & Parker has a good 
selection. 

The 22-year lease outstanding on 64 
Pont Street. SWI (price £138.000) 
should outlast any romance. And 
£100,000 buys a fourth-floor flat at 4 
Sloane Gardens, SWI. 



For E225.0QO: 2ia Brick Street, tucked away behind the Park Lane Hotel 


But the best place of all “to sin with 
Elinor Glyn/On a tiger skin - Or 
would you prefer/To err with her/On 
some other kind of fur?” is the huge 
studio/drawing room of 49 Lyall 
Mews, SWI which costs £L15m for a 
44-year lease from Lassmans. 
Cheaper, at £179,000 from Foxtons. is 
a New York-style loft flat in Cromwell 
Road, SW3. 

If your love is on the periphery of 
central London, take your pick of 1 
Glentham Cottages, SW13, next to the 
playing fields of St Paul’s School 
(Dixon Porter. £120,1)00), or Crescent 
Grove, SW4, a converted coach house 
near Clap ham Common, convenient 
for the Underground station and with 
a walled garden for maximum privacy 
(Winkworth in Battersea. £159,000). 

On the north side of the Thames, 
Rio Cottage in Grosvenor Road, SWi, 
could not be in a more romantic set- 
ting and has just been sold for 
£275,000 from Winkworth. in Pimlico. 

The original asking price was 


£345,000. It is the refurbished old cot- 
tage of the gatekeeper who controlled 
the sluices where the Tyburn (better 
known uphill at Marble Arch) ran 
into the Thames. 

The Tyburn is now in a tunnel and 
the house sits on top of this, with all 
the back windows looking out on to 
the Thames. 

And you might also think of 
En gland in a fiat in the main turret of 
the Gothic Royal Victoria Patriotic 
Building, SW18 (to rent from the 
same agent for £500 a week). There is 
a secret entrance from a self-con- 
tained “nanny" flat to the “study", 
and three exits - but now we are 
talking French farce. 

■ Further information: Chestertons 
Residential (077-629-45/3); Dixon Porter 
(0SIS78-ZS23): Foxums (071-370-4533): 
Knight Frank & Rutley ( 071-6294171 A' 
Lassmans (071-499-3434); Wetherell 
(071-4936935): Winkworth, Battersea 
( 071-828-9265 ) and Pimlico 
(071S2S-17861 


Cadogan’s Place 

Setback for 

Heseltine 


E arly in the 1980s 
Michael Heseltine, 
then environment 
secretary, started 
the programme which has 
brought the total of listed 
buildings in England to almost 
500,000. Now, wearing another 
hat as squire of Thenfard. 
Northamptonshire, he has 
come a cropper with the 
listing regulations. South 
Northamptonshire Council 
has refused him listed 
building consent for 
alterations to a cottage he 
owns in the village. 

The root and the windows 
are what stymied him. While 
the cottage now has a slate 
roof, It is dear that, 
originally, it did have thatch. 
Heseltine wants to pat this 
back - but he proposed using 
Norfolk reed, which Is not 
regarded as the right material 
for the vernacular architecture 
of the area. 

The local product is long 
straw which makes a rather 
wispy, shaggy roof - but this 
is now difficult to find. A 
possible alternative is combed 
wheat, which is neater but 
still not quite correct 
As for the windows, he 
planned to Install sealed, 
double-glazed units. These 
may conserve heat bnt again, 
they are Inappropriate. 

Such decisions about details 
are not easy for local councils 
although they are crucial for 
maintaining the character of 
an area. In any case, 
since the council's decision, 
Heseltine has re-applied for 
consent and proposes to keep 
the slate roof. 

□ □ □ 

A glorious Queen Anne bouse, 
listed grade L comes up for 
auction on Monday afternoon 
at the Berkeley Hotel, London 
SWI. 

Hinwick House, tn 
Bedfordshire, has been In the 
Oriebar family since Richard 
Orlebar built it between 1709 
and 1713. Hie architect was 
probably James Hunt of 
Northampton, who is said to 
have been a pupil of Grinling 


Gibbons, the wood -carver and 
sculptor. 

As with the sale of 
Brympton d'Evcrcy in 
Somerset in 1992. money - 
or rather lack of it - is the 
reason for the sale. The house 
comes with several listed 
outbuildings plus a park, a 
lake and woods - 35 acres In 
all. Also included are five 
tapestries, 13 bedrooms and 
a fourseater lavatory. 

I remember visiting Hinwick 
20 years ago when it was open 
to the public. We were the 
first group to arrive on a 
Sunday afternoon when the 
family was sitting sleepily 
around the television. As we 
came in, they threw a doth 
over the machine - which 
carried on all the same - as 
if it were a parrot 

Joint auctioneers Savills 
(071-499 S644) and AllSOp (071- 
494 3686) suggest a guide price 
of £ 425, 00 D-£ 4 7 5.000. Bidders 
should have a banker’s draft 
or solicitor's cheque for at 
least £40.000. 

OCD 

In France only lawyers can 
bid in such forced sales, and 
they must also arrive with 
a certified cheque. Chartered 
surveyor Armstrong McCrea, 
in Monte Carlo, bought a villa 
at Grasse last week with two 
guest houses, two tennis 
courts and a swimming pooL 
It used to be rented by “Baby 
Doc" Duvalier, son of Haiti’s 
infamous dictator, and was 
on sale privately last year for 
£l-5m. 

French auctions receive 
little publicity - just three 
brief visits in the company 
of the bailiff before bidding. 
The house went for £450,000, 
most attractive to the buyer 
bnt probably less so to the 
French tax collectors, who had 
foreclosed. More often, it is 
the bank that is the vendor. 

Armstrong McCrea (33-93 
50 71 97) runs a Riviera 
Vulture Fund to look for 
similarly unusual chances to 
buy on the Cote d'Azur. 

ac 




COUNTRY PROPERTY 

PIED-A-TERRE 



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UuhvclL lias been purchasing and managing such Linns tor investors for generations. 
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Tel: «2J MUM l PLEASE CONTACT ONE OF OUR SENIOR 

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J S Find*, FR1CS 
TrL-0473 OllCrH 
Fa*: 047] 610211 


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chartered SURVEYORS 


Norwich 
P T Day FRICS 
Tel: IlkU 761919 
Fax: 0603 763899 

Scotland 

R V Balia or FRICS 
Trb U7H 30666 
Fax: 0738 2T264 


INVEST IN A LITTLE ESCAPISM, to mo 
warm wvteome ol Kooe Barton Barm - 
Group Owunhp of i, 2. 3 boa hot stone 
celts in 30 ac sflOudW term by sea near 
Soteorrins. Indoor pool, sauna, gym, tennis 
etc. Fr £14.450. Col btoch & Insp visit 
fltnaiK Hooo Barton. Freepost F. Hope 
Cove. KingsbrttSgo. S. Devon TO? iBrt. 
Td. 0548 561383 Fat 0548 560838 

WEST WALES COAST. Investment Property 
1 ro Roe Coastal hum. Urge tamtiouse S 
ota anno oueuitlngc. (LWsure Potanaol) i 
acre cake $ night pends. Rich tortile 
posture land complete privacy. Otters 
Invited U.o. El 00.000. Furttm MOM Fred 

Rees £ Son Cardigan 10239) 

614607*10464 

NORTHUMBERLAND: Large family 
homeifluwt Mum wttti rural end coastal 
v*owa. doso to A1 road. Ent Hal. 3 iwsp, 7 
bedrooms. 2 bathrooms, gae Central 
Hooting garden. Guide £139.000. Tel 
Agent*. George FWWte 0665 603501 


COUNTRY RENTALS 


ACORN PROPERTY 
MANAGEMENT SERVICES 
EsL 1979. Members of ARLA 

Hanlry WiMMrjr: Lgc Country bouse in 
turtl * tta. J bed*. 3/4 refepfc. ooart. 
gmgc, sable, £1.930 pan. 

We lino urgently require properties of a 
high standard in the Hartley Winlney. 
Hama, ana to kt, 

DetsBs Hartley Wintaey 6252 S42795 


ESSEX - convenient for Stanatod Airport 
Shed Victorian M« House in appro* i acre 
with river frontage. Swimming pool. 
El. 500 pem unfurnished G E Sworder 
(0279) 755573 


JAMES HARRIS 




HAMPSHIRE 

Exquisitely well presented 
town house close to 
Winchester Cathedral. 

Fully furnished and ideal for 
a professional couple accustomed 
lo quality accommodation. 
£1,750 pent exclusive. 

Tul: 0962 841842 


SAVELLS 


INTERNATIONAL 



CAMBRIDGESHIRE, Stibbington 20 ACRES 

Pacfbcmiugh S miles. Suuiifonl 7 links. OnnJU- V miles. 
GRADE I LISTED JACOBEAN MANOR 
Reception Hall, 5 reception rooms. Breakfast kitchen. Cdiir. 
Principal ■suite of bedroom with dressing room and bathroom. 

5 further bedrooms, J bathrooms, 3 secondary bedrooms. 
Coach house flat, stabling, swimming pool, tennis court, 
formal gardens, paddocks & water meadows. Rher frontage. 
Joint Agents: 

Strutt & Parker (0858) 433123 
Sa villa, Stamford (0780) 66222 


INTERNATIONAL PROPERTY CONSULTANTS 


OYSTER QUAY 

PORT SOLENT, 

PORTSMOUTH 



APARTMENT 165 

CAR BAY 143 
Lovely 2 bed, 2 bath 
sunny flat with wide 
balcony. Priced to 
ocer-compensate 
for somewhat distant 
carboy. 

Reduced from 

£99,000 to 

£93,500 

Open Daily 11am - 6pm 

(0705)219109 


KENT 


MARDEN - Picturesque converted born 
In secluded ] acre garden with lake. 

4 bed., 2 baths. 3 rec. kiL uiU. 
dbleggr, cJl, S255JXK). 


OW .LQL flvS f LTD 


SOUTH DEVON 

Grogan farmhouse. Half, lutings, dining 
room, study, forra bouse kitchen, 

5 bedrooms, 2 bathroom shower room. 
Lawped ganlens. Joint Agents: 
Lraoombc Maje. Region £1 75 J300. 
Option on 5 aero r5‘ £10.000. 

Reply Stags QW 13-8654 $4. (Cl 1858/PS) 


Hamptons 


OXON, GLOS, WORCS 

Do yon own a vacant Griswold property? 
We offer a professional Lettings 
& Management service. 

Far a FRf-i: lettings appraisal please cull 
our Chrltrnhaiii office ore 

(0242) 263559 


RETIREMENT 


FROM LONDON TO ILMINSTER 

Escape the turmoil at tire traffic and discover the tranquillity of 
retirement in the West Country. An English Courtyard apartment at 
As li combe Court in nminster, overlooking the landscaped courtyard 
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which is absent from city life. Despite its rural setting, Asheombe Court is 
only minutes Cram the bustling high street of this thriving market town, 
with its rscosilonl array of shops providing Tor your everyday needs. 

Prices fown £96,000 to £160,000. 

To find out more about those and other properties in 
Midds, Someraet, Wills. Ehxfcs. 0»m and Kent, please ring us for a brochure. 
The En gHolf Courtyard Association 
8 Holland Street, London W8 4LT 
FREEFONE 0800 220858 


SMITHS GORE 


Chhi rti'YCcl SliY Z- c y o r$ 


Ande; 


ABERDEENSHIRE 

ABOYNE, DEESIDE 

A most attractive residential, agricultural 
and sporting estate offering very enjoyable 
driven pheasant and rough shooting. 
Principal farmhouse - 2 reception, 4 bedrooms. 
4 tenanted cottages/ farmhouses 
283 acres in-hand farmland. 
Agricultural investments producing 
about £4390 per annum. 

About 247 acres woodlands. 

ABOUT 918 ACRES IN ALL 

FOR SALE AS A WHOLE OR IN 1 1 LOTS 


TEL: EDINBURGH 031 555 1200 



TO LET- £1500 pem 
RUTLAND STREET, SW7 

(Nearest Tube : Knightsbridgc) 



DELIGHTFUL 1 BED 
MEWS COTTAGE 
FULLY FURNISHED 
For Further Details 
Tel: 081 686 7941 
Fax: 081 681 5407 


LONDON PROPERTY 


CLASSIC TOWNHOUSES IN TREE LINED SQUARE 



•f v . 

Now available for sale, three previously rented town houses ai Chelsea Harbour; set in a 
traditional Chelsea and Belgravia style square. Each has four or five bedroom*., a 
'penthouse' studio room, garaging and a garden. Please call for details of these 
town houses and the remaining apartments from £236,0(10. 


Townhouse 15 - £595,000 
Townhouse 17 - £595,000 



Townhouse 13 - Under Offer 
Leasehold 


Harbour Estates -071-351 2300 
chelsea harbour, lots road, London swio 





■i. 'i, 


Apartment at scab of hecbthi 
REDECORATED VICTORIAN COWVEESHH. , 
OVEBLOOava SECLUDED CAMKN. 

In 3UPBBB COOTmONTHROUGBCUT. 

Lmke Bedroom. Rkeftom, 
Kitthkn. Bathhoom, and Storage. 
Enthtpwwb &CCH. 

Flics Guido : £63,400 IWtaM i 
Pbaoa Owner: 071 837 &1EG 


CITY, EG4 - i bearaom RlvsrsWe flat 
Modern plb block, lilt porter. £89.500. 
Barnard Marcus 071 030 2738 

UAASHAJI COURT, SWI - Choice ol two 
1 bu tea in test dam 2 *lv ponerad block 
noar Tads Gafery 7* floor - tmoOQ. an 
Fkw ■ El 10,000. Tudrtffltan 071 322 5611 

CHELSEA HOME6EARCH 6 CO We 
represent mo buyer lo hn Ume and 
money: 071 537 2281. Fax 071 937 228B. 


OFF MANCHESTER 
SQUARE Wl 

Three dsttngutehed 
resforad/raconsfructeci 
period Bouses located just 
north of Oxford Street. 
2500/2800 salt. 4/5 Bedroom* 
with snsuite Bathrooms. 3/4 
Receptions. 2 with conservatories. 
Parking avatabte 

NHBC Warranty 
B645JOOO & S690XD0 FREEHOLD 

EflOrton 07T 493 0676 
W A BBS 071 581 7654 


PRINCE DALE ROAD Wll 

Fftehokf {<,7730; house in quicr street 
double reception, dining, study, 
kitchen. 4 beds. 2 baths, excellent 
decorative condition, many original 
features, c/h. 7y Wesl facing mature 
garden, 4 mins Holland Park lube. 

£615,000 
Tel: 071 792 4293 


KENSINGTON WB Period oomeratan bet 
floor. Two bedrooms. Large balcony. 
Separate dring arm £156.000 HOSKINS 
Tet 071 371 6721 Fax 071 371 6751 

LITTLE VENICEfUAIDA VALE 
The spedaUat local agents. Victors 6 Co. 
TfiL 071 Z89 1692 Fax 071 2683941 


HVKPAflKST.Mat a n dg h e a a iteiii 
*•1 Aw poA. hauler deefrud 5 bo 
wmxbftliArmflenMWwi 
«a«i er»y. 91 pa ono. No agam 
071 402 67BBCBQ 7405 Pb 071 6818467 

WESTMINSTER GARDENS. SW' 

L»ge 4 bed. 2 nre. mteaonatte In pb N 

wtth portera arte perking. We« proa*! 
throughout Share of p/HoM. £390.0 

Tucfcsnran Q71 SS2 SS1 1 

CHARTERHOUSE SO. ECt - 1 bad» 
Mri tote Overiggitag So, Scriffunlng p 
e«. Ct 15,000 and M7M00 respoeflw 
Bamenl MOreua 071 6382736 












II 


wef-kend ft xvn 


GARDENING 


English flowers 
in a class 
of their own 



M arch Is behaving 
madly, which 
makes life diffi- 
cult for show- 
offs. Where do you take visi- 
tors if you want to impress 
them with English flowers at 
their best? 

1 have just faced this diffi- 
culty. I have been trying to 
impress a great foreign bota- 
nist - not any old European 
dignitary but one of the senior 
plant scientists from Russia, 
who has seen more fruit trees 
than you or i would recognise 
and knows every botanic gar- 
den from the Caucasus to Vla- 
divostok. A few drifts of nar- 
cissus Cragford in long grass 
would not make the right 
impression. 

As usual, this early spring Is 
split between towns with 
clouds of early blossom and a 
countryside which has yet to 
see an anemone in flower. Acid 
soil and shelter have hurried 
along the camellias, but where 
are Cornwall-like habitats 
within easy reach of Oxford? 

The answer, this weekend, is 
at the Savill gardens in Wind- 
sor Great Park, where spring 
breaks early on a sheltered 
site. Would it have broken 
already. I wondered. The per- 
son at the end of the telephone 
assured me she could see daffo- 
dils the last time she managed 
to escape from her paperwork. 

Vladimir was expecting great 
things: cravenly, I threw in 
such sweeteners as the prom- 
ise of seeing Windsor castle, 
royalty at prayer, and a guided 
tour round Eton college - the 
pinnacle. I apologised, of the 
English class system. If the 
camellias failed, we could fall 
back on boys in tailcoats and 
guesses about Princess Mar- 
garet's bedroom. 

Perhaps it was the promise 
of narcissi, perhaps it was the 
class struggle. But. when we 
set off. the plan already had a 
Russian stamp of approval 
because two passengers had 
become five: Vladimir brought 


along some extra friends to 
keep up the numbers. 

They had much to teach me, 
some of which will enliven this 
column in future: a post-Stalin- 
ist exclusive for the pink FT. 
Meanwhile, I learnt that there 
are great rose beds in the 
botanic gardens at Yalta; thou- 
sands of roses have been 
planted down the streets of 
major Ukrainian towns; and 
there are vast orchards of sci- 
entific collections around Vla- 
divostok. 

To seal an agreement of col- 
laboration, I now have bushes 
of blackcurrants (with names 
such as Delight of Lenin) 

Trying to impress 
a great foreign 
botanist, Robin 
Lime Fox finds a 
sight worth the 
journey from 
St Petersburg 


which have been planted in 
that last lingering ash-bed of 
communism, the gardens of my 
Oxford college. 

On the road to Windsor. 
Vladimir wanted to tell me 
about great cherries which he 
had visited; one friend wanted 
to interpret; another wished to 
tell all of us (in Russian) about 
the latest political changes; 
and the fourth harangued me 
on her understanding of rela- 
tions between ancient Persia 
and Greece. Schizophre nically , 
I wondered if the Savill gar- 
dens would rise to the occa- 
sion, or if we would peter out 
in snapshots of Eton’s school 
yard. 

There is no knowing at the 
turnstile: the gardens are 
entered through an extraordi- 
narily ugly gift shop which 
blots out the style which the 
late Eric .Savill tried to 


achieve. The famous meadow 
beneath it has Britain’s finest 
sweep of the small Hoop Petti- 
coat daffodils which revel in 
the damp. A few dozen were 
visible, and so I improvised 
about the milli ons which were 
waiting to emerge. What 
impressed my convoy most 
was the meadow’s similarity to 
the sort of steppe they see in 
Russia every day. 

Beyond the future narcissi, 
the whitoflowered cemanthus 
delavayi is Dowering freely, 
but it did not attract comment 
The first rhododendrons were 
better, including the aptly- 
named Redwing: the big 
bushes of the Falconieri vari- 
ety looked wonderful to me, 
but less wonderful to those in 
the party who had seen them 
wild in Bhutan. I was begin- 
ning to think it was time for St 
George's chapel and the royal 
dolls’ house when we rounded 
the path to the garden's fur- 
thest dell and my guiding anxi- 
eties all passed away. 

Go and see it if your own 
gardens are still emerging 
from winter. Huge bushes of 
all the various corylopsis are 
smothered in the yellow bell- 
flowers which never appear an 
my soil and old, hybrid camel- 
lias are tangled into a flower- 
ing archway where names 
such as Inspiration are 
entwined with Salutation. The 
rhododendrons are not over- 
powering and the trunks of the 
birches are beautifully white. 

Out in the clearing, to the 
right of a pile of drainpipes, 
stands a sight worth the jour- 
ney from St Petersburg. The 
small cyclamen-flowered nar- 
cissi are already flowering by 
the thousand in the wet condi- 
tions which their tubular flow- 
ers require. Above them stands 
a tree of a special magnolia 
sprengeri, its hundreds of 
white and reddish flowers 
opening flat in the spring sun- 
shine. They bear the name of 
Savill, who made this garden 
out of unused parkland. 



SavS gardens In Windsor Great Park, where spring breaks early an a 


You and I are unlikely to 
have the soil, or the years of 
patience, to grow a magnolia to 
this size. Visit it instead - and 
reflect on the appropriate 
chanc e that it was open to wel- 
come St Petersburg's leading 
botanist on a visit which could 
never have been considered 
when the tree was first put in 
place. 

We admired the crocuses and 
felt at home among the Chi- 


nese azaleas. By the time we 
moved on, it did not seem to 
matter that the state apart- 
ments were closed and there 
was scope only far a snapshot 
of Windsor castle's towers. The 
Etonian boys were viewed with 
wonderment and the buildings 
made my visitors feel expres- 
sively pro-British. 

Magnolias, it seems, are 
stronger than Marxism and, 
when we left, we all felt we 


had seen something to provide 
a special memory — one that is 
greater than any particular 
country and common to any- 
one who responds to flowers. 
This weekend, those flowers 
should still be holding and the 
gardens will have even more to 
show. You do not need a for- 
eign delegation to persuade 
yourself that the journey Is a 
justified pleasure on its own 
terms. 


Fishing /Tom Fort 

Fine chub 
save the day 


I was faffing at my desk - 
or rather staring into 
mid-air with the end of 
my pen in my mouth - 
when a thought struck me. It 
was not a thought conducive to 
completing the tedious task an 
which .1 was engaged. Kit it 
was one of those thoughts 
which dwmamflg immediate 
action - like the realisation 
that you have forgotten your 
mother’s birthday or left the 
garden hose running. 

It was that if i did not go 
fishing immediately. I would 
have no further opportunity 
before the coarse fishing sea- 
son closed in a few days. Out- 
side the sun was shining, the 
birds were chirruping , the daf- 
fodils were just blooming, and 
the river - in my mind’s eye - 
was running clear and spar- 
kling. 

An internal debate between 
duty snd inrifnqHfm W8S brief, 
and within the hour I was by 
the water. 

I had decided that I would 
catch perch to begin with, spin- 
ning; than nine or tWO of the 
grw»flWa roach which harl long 

eluded me, on floatflshed 
bread; and finally a hard-flgbt- 
ing barbel of seven or eight 
pounds, on a hoi ping- of Sains- 
bury’s breakfast slice, which I 
hart been assured was the bar- 
bel bait of the moment 
At 5pm - with an hour of 
ilay li g ht on my last fishing tiflry 
remaining - I had caught nei- 
ther perch, nor roach, nor bar- 
bel, nor anything else. What is 
more, I had endured a series of 
t riflin g misfortunes. I confess 

that some of these were selMn- 
flicted. ft was absurd to believe 
that I could successfully flit 
from species to species, and 
method to method. I should 
have identified o ne target, and 
gone for it And I should have 
remembered to bring a stool to 
at on. and not relied on the 
ground - for a damp backside 
in chill March is no laughing 
matter. 

On the question of my wet 
feet, I am prepared to accept 
some of the blame. I knew that 
my right gumboot had a leak, 
and was carefbl to keep it out 


of the water. But how was I to 
know that the left one had 
developed a gash as if attacked 
by a w yiniac with a butcher s 
knife? I soon found out. 

All right, I should have been 
alert -wreig h to prevent Bertie 
the spaniel stealing half the 
packet of breakfast slice; and I 
should not have been so care- 
less as to cast into the upper 
branches of the alder oppo site. 

As you may have gathered 
by now. the idyllic quality of 
»u> day as I bad imagined it 
had departed. All these inci- 



dental irritations would have 
been negligible, if Z could have 
caught something . This is what 
most aggrieved me - the obsti- 
nate, unreasoning refusal of 
the fish to bite. As the evening 
drew in, so my frown grew 
deeper. 

Then I had another thought 
I should be after fish that were 
permanently hungry. That 
meant chub. Only the chub 
could save me. 

I hastened to the millpool 
below toe house. And there, on 
the remains of the breakfast 
slice, I caught five fine, fat 
chub, llie bites were bold, the 
fights in the foaming water 
strong and satisfying. I applied 
myself intently and intelli- 
gently, and all the fondness for 
the rfinh thnt i had had as a 
boy - as a fish which could be 
depended on - returned. 

The last was the best, a good 
41b. As 1 slid tiie net beneath 
its gleaming , silver flanks, I 
murmured my appreciation for 
the inspiration which had 
come to me that morning - 
and for a day redeemed from 
disaster. 


LONDON RENTALS 


INTERNATIONAL PROPERTY 


KENSINGTON, W8 
PHDLLIMORE GARDENS 

To kt unfurnished. Ideally situated 
4 bedroom modem home near 
Kensington High Si. and adjoining 
Holland Park. Private puking far 
2 can line, garage V Small garden. 
£830 per week for min. 12 mantis. 
Principals only. 

Trib (bam UK) 

0534 20979 or tax 0S34 3Z207. 
Tch iHUetnatfonal) 

44 534 20979 or fiuc 44 534 32207 


LONDON 

PROPERTY 


AARON & LEWIS 


PROPERTY SERVICES 
144 OLD BROMPTON ROAD, 
LONDON SW74NR 
TEL « 1 244 991 1 FAX 071 244 «J» 
FOR SALE HE5PER MEWS SW5 

FREEHOLD T™» bedroo m . Lounge. Dining 
Room Ki tchen . 2 badnoooB. 2 ganga reputes 
nprUing OTSJMkc 
FOR SALE OSTEN MEWS SW7 

FRKHOLD 2 beds Open pbo faougt/tticban. 
Bathroom. Garage. In nrad of npdming 
Z17SJMMC 

FOR SALE QUEENS CATE SWT 

LEASEHOLD Third Boor 2 bedroom BnL I 
BHnitc , bower room, bathroom. Lounge. 
Rttcfaeu EB&OOOdc 

FOR SALE QUEENS CATE SW7 

LEASEHOLD Raised parrel floor 2 bedroom 
Oar. Bccepiaa. Kitctra. master bedroom with 
rasuile harhroma. Bathroom. QSB^MOatc 


WANT TO RENTA 
PROPERTY 
WITH A GARAGE? 
Combine the two in a 
Central London mews 
house from £300 pw. 
Send for extensive list 
LU ROT BR AND 
LETTINGS 
071-402 1146 


FOR SALE 

Key West, Florido,USA 

Extraordinary vacation home on 
exclusive, secluded key 150 miles 
Southwest of Miami International 
Airport 3 BR, 1 BA. tiled interiors, 
jacuzzi, A/C, restaurant quality 
kitchen appliances. Lush island 
setting: fountain ed courtyard, 
wrap-around deck, 250 foot sea 
walL Beautifully landscaped. 

Bor photos and brochure contact 
Maxk Anderson. Owner 
Fax USA 305 8561006 
Teh OSA 305 856 8567 


FF.RADA ASSOCIATES 
LIMITED 


Paesnanioeeam ty Paata Places 
BELGRAVIA: Chinning 2 bed/2 huh 
mews bouse wiib giraga. Pull)' fined 
kitefaefl Md spacious reception. £450 pw. 
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Gaia the earth goddess 
makes a comeback 


A 



HOUSING 
IN ROME" 

Saturday 2nd April 

Do YOU HAVE 
PROPERTIES FOR SALE 
OR RENT IN OR 

around Rome? 

Do NOT MISS THE 
OPPORTUNITY TO 
ADVERTISE ALONGSIDE 
THIS EDITORIAL 
FEATURE. 




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OR FAX 071 873 3065 




H ave you heard of 
Gaia? You have, of 
course, if you had a 
classical education. 
But today, classical education 
or not, if you believe in gar- 
dening organically - that is 
without chemicals and in a 
manner in tune with nature - 
you may be a Gaian devotee. 

Gaia is the ancient Greek 
goddess of the earth who is, it 
seems, making an important 
comeback according to The 
Natural Garden Book by Peter 
Harper and others, (Gaia 
Books, £iaS9, 287 pages). The 
“nub of the Gaia hypothe- 
sis .. is that toe biosphere is a 
complex system so closely 
analogous to a living or g an ism 
that we might as well regard it 
as one.” 

Gaia, we learn, is three bil- 
lion billion years old, probably 
immortal, self-regulating like 
any living thing and capable of 
self repair even from severe 
damage. It - or is it she - is 
also capable of recycling its 
own waste while being "pow- 
ered by the sun and profoundly 
influenced by the moon”. 

In other words Gaia seems to 
be Nature itself and it is the 
contention of the authors of 
The Natural Gardening Book 
that, gtnee finch of our gardens 
is “a little piece of Gala” and 
each of those pieces is a micro- 
cosm of the whole, it behoves 
us to garden in sympathy with 
Gaian rules. 

Mumbo jumbo? Or no more 
than flavour of the moment, 
given the high political profile 
of sustainable development? 
You scoff at your peril, says 
Geoff Hamilton, one of 
Britain's foremost organic gar- 
deners, whose chemical-free 
veg and flower beds are regu- 
larly seen by 5m television 
viewers. He writes in his intro- 
duction: There are plenty of 
books about natural ganteifng , 
but none. I’m sure, that so 
clearly and comprehensively 
explains not only the tech- 
niques that will ensure chemi- 
cal-free success hut also toe 
logic and the philosophy 
behind the ethic of natural gar- 
dening.” 

I most say I found the book 
fascinating. This is partly 
because of the different meth- 
ods of gardening it recom- 
mends - although some of 
these, such as using your own 
urine to speed up compost 
making, are challenging - but 
mainly because of the more 
respectful attitude it encour- 


ages one to take towards the 
garden and its huge array of 
plant, animal and insect life. 

A more pedestrian, although 
admirably clear and well-fllu^- 
trated guide to organic garden- 
ing is to be found in Gardening 
Naturally by Ann Reilly 
(Prion, £L4£5, 192 pagBS). An 
American writer, Reilly takes a 
hands-on approach, beginning 
with ways to condition the sail 
and proceeding through insect 
and pest control to chapters on 
which flowers, herbs and vege- 
tables to grow and how. 

If you are at all serious about 
growing vegetables, however, 
you should also know about 
The Vegetable Finder, a hand- 
book analogous to the admira- 
ble The Plant Finder In that it 
aims to tell you where in the 
UK to buy a vast variety of 


browse, discovering as he goes 
that while cyaneus means dark 
blue, cyananthns means with 
dark blue flowers and cyano- 
carpus means bearing blue 
fruits. 

But now to something 
grander. Challenged to name 
two dozen, of the major gardens 
created this century, most 
experts would probably indnde 
Hidcote, in Gloucestershire, 
designed by Lawrence John- 
stone from 1907 and now man- 
aged by The National Trust 

They might well also list 
Lutyens’ Viceregal Garden in 
New Delhi and perhaps Dum- 
barton Oaks in Washington 
and the Governor’s Palace in 
colonial Williamsburg, 
designed respectively by Bea- 
trix Jones Fanand and Arthur 
A ShurchfL 


Kao: A World of Plants (Collins 
and Brown, £20, 160 pages) 
which was published last year 
and Trees of Ireland - Native 
and Naturalised, by E Charles 
Nelson and Wendy F Walsh 
(Lifliput Press, Dublin, 240 


Bridget Bloom picks her way through 
the latest crop of gardening books 


But what about the Wood- 
land Cemetery just outside 
Stockholm, designed by Gun- 
nar Asptand to take advantage 
of “the pale Swedish light 
punctuated by tall, dark pine 
trees” or the 125-acre site once 
the home of the central abat- 
toir for Paris, now becoming 
the Parc de la Vffiette with 
Bernard Tschumi’s “glistening 
red surfaces of individual steel 
cubes” as its centrepiece? 

William Howard : Adams’ 
impressive tame, Grounds for 
Change: Major Gardens of the 
Twentieth . Century (Little, 
Brown and Company, 216 
pages, $60) is Uself conceived 
on the grand scale. 

“Of aQ the arts - pain ting, 
sculpture, music, architecture, 
dance, theater, even that arri- 
viste^photography - only land- 
scape design has been denied 
an account of its history and 
achievements produced m the 
20th century.” Adams plots 
just those achievements, from 
the early straggle between tbe 
Formal aunri thA Natural philos- 
ophies of garden, and landscape 
design (the two are often seen 
as synonymous) to the more 
recent post-Modam efforts to 
integrate technology and its 
shapes into landscape design. 
He describes his 24 chosen gar- 
dens in often fascinating detail 
with some striking photo- 
graphs by Everett H Scott 

Next come two very grand 
books hyVwd Heather Angel's 


It is produced and published 
by the Henry Doubleday 
Research Association, one of 
Europe’s premier organic 
establishments (£5.99, 296 
pages, distributed by Moorland 
Publishing at Ashbourne, Der- 
byshire DA6 EHD.) 

The Vegetable Finder is 
doing its bit fin: bio-diversity 
by listing nearly 3,000 varieties 
of vegetables. 

Two more books with an 
organic flavour are David Bel- 
lamy’s Blooming Bellamy 
(£15.99. BBC Books) an enthusi- 
astic, nicely-illustrated work 
on herbs and herbal healing. 
There is also a rather curious 
item bearing Geoff Hamilton’s 
name and entitled Gardener's 
Challenge (Kingfisher Books, 
£9A9, 144 pages). The publish- 
er’s bhnb describes it as a test 
of general gardening know- 
ledge with more than 1,000 gar- 
dening questions (and 
answers). Designed, perhaps, to 
help the quiz-minded gardener 
while away the non-gardening 
months of the year. 

With similar activity in 
mind, I confess to having 
bought and given away at 
Christmas several copies of 
another slim volume published 
last year. Gardener's Latin, a 
lexicon by Bill Neal (Robert 
Hale, £6-99, 138 pages) Is a book 
for tire gardener who has most 
things (except perhaps a classi- 
cal education) and who likes to 


The first is an upmarket 
guide to the Royal Botanic 
Gardens, at Kew, Surrey, 
which has one of the largest 
collections of living plants any- 
where, from habitats as diverse 
as tropical forests, deserts, 
coral reefs and the temperate 
zones. The pictures, as one 
might expect from one of the 
UK's top nature photogra- 
phers, are very fine. 

Trees of Ireland, with line 
drawings and watercolours, 
not photographs, is an elegant 
reference book which could 
well, as its publishers say, 
appeal to the gardener, ecolo- 
gist, artist and dendrophile 
alike. 

And so to gardens not 
included in Adams’ book, 
which form the subject of two 
other recently published books: 
Christopher Lloyd's In My 
Garden (Bloomsbury, £16.99, 
277 pages) and Mirabel Osier’s 
The Secret Gardens of France 
(Pavilion, £1699, 158 pages). 

Lloyd's famous garden, 
designed by Sir Edwin Lutyens 
for his father Nathaniel Lloyd, 
is at Great Dixter in Sussex. 
Lloyd himself is a respected 
garden writer and this latest 
work is an anthology celebrat- 
ing 30 years of his gardening 
column in Country Ufe. The 
pieces are grouped month by 
month; they are chatty, infor- 
mative and definitely for dip- 
ping into, although Lloyd's 
highly personal style may not 
be for everyone. 

Osier’s book, too, is for dip- 
ping, perhaps when travelling 
in or planning to visit France. 
She has strong opinions, but is 
knowledgeable and enthusias- 
tic about her subject 

Finally, since spring is upon 
us, are three no-nonsense, 
hands-on guides to gardening 
from the Royal Horticultural 
Society at Wisley. Each is 
priced at £1399 (Cassell, 256 
pages) and each brings 
together three or four of the 
BBS’s earlier handbooks. The 
new books are entitled Making 
a Small Garden, Courtyard and 
Terrace Gardens and Planting 
Your Garden - the latter 
deluding the earlier handbook 
by Christopher Lloyd on The 
Mixed Border. 


z'fl. 
-St i. 
■■S’-'. ■. T -' 

':n-' i; 


. • -v 


U- 




















BOOKS 


* 


With his 
best Foot 
forward 

Malcolm Rutherford reviews a new 
biography of the man who held the 
Labour Party together 


W hen he retired as a 
Member of 

Parliament in 1992, 
Michael Foot 

declined to go to the 
House of Lords on the entirely 
rational ground that he had always 
said the place should be abolished. 
More surprising, and far more 
regrettable, was his decision not to 
write his memoirs. 

The task of producing his biography 
was taken on by Mervyn Jones, an old 
journalist friend, author of many 
novels and broadly a political 
soul-mate. Jones has risen manfully 
to the challenge. The published 
version of his book runs to 570 pages: 


MICHAEL FOOT 

by Mervyn Jones 

Hciur Gallon cz £70. 570 pages 


the full version has been placed with 
the Museum of Labour History in 
Manchester. 

One may ask. however, whether 
this is the right way to go about it. 
Apart from the biography, Jones has 
provided a potted history of the 
events leading to the second world 
war, a summary of the cold war. 
and a history of the Labour Party 
seen from the left. It is as though 
Michael Foot was a pivotal figure 
throughout 

The truth is rather different. Foot 
was always an engaging man, but 
until relatively late in life his political 
influence was peripheral. He has 
perhaps two big claims to fame in 
British politics. The first is that he 
was instrumental in founding the 
Campaign for Nuclear Disarmament 
in the late 1950s. CND, whatever was 
said by its detractors, led to an 
intellectual concentration on the 
problems posed by nuclear weapons. 
It also contributed to the test ban 
treaty, which was the first serious 
attempt to bring the weapons under 
international control 

On the second claim to fame, the 
jury is still out, but the preliminary 
verdict must be sympathetic. Jones 
puts U starkly: "The truth about 
Michael Foot's place in history is that 
he was the man who saved the 
Labour Party". 

Some people may argue that by the 
late 1970s the Labour Party had 
served its purpose and should not 
have been saved. A more telling 


judgment will depend on whether 
there is ever again a Labour 
government. If there is. Foot will have 
done something to bring it about, for 
it was he who strove as much as 
anyone to hold the party together. 

In his early political life, Foot had 
always been a maverick. Initially he 
was a Liberal from a liberal family. 
He was never short of contacts. After 
Oxford, his first job was with a 
shipping firm in Liverpool, employed 
by the right wing brother of Stafford 
Cripps, and it was on Merseyside that 
he turned to socialism, though it was 
socialism of a quixotic kind. 

Foot’s patron was Lord 
Beaverbrook, for whose papers he 
wrote, despite dissenting views. Hjs 
hero was Aneurin Bevan, of whom he 
became the biographer. Yet, as Jones 
points out, there was always a 
dilemma between politics and 
literature. Foot could do either, but 
was never quite sure which he 
preferred 

For a time he had it both ways. He 
entered Parliament for Plymouth 
Devonport in 1945 and held the seat 
for 10 years. In 1960 he succeeded 
Bevan as the member for Ebbw Vale. 
Before he died, Bevan had become a 
controversial figure on the left of the 
party because he refused unilaterally 
to renounce nuclear weapons. 

F oot knew, from his Bevanite 
experience, how schismatic 
the party could be, yet for a 
decade he continued on the 
outside left. Then in 1970, when 
Harold Wilson lost the general 
election. Foot decided to move inside. 
He stood for the shadow cabinet, was 
elected and for the next 13 years, 
whether in government or opposition, 
played a crucial role in keeping the 
party just about intact 
This is the seminal part of the 
political chapters in the Jones book. 
Some of the information, drawn from 
personal interviews, is new. I did not 
know, for instance, how far Foot was 
behind the Lib-Lab Pact of the late 
1970s, and I was surprised to learn 
that Denis Healey was utterly loyal to 
Foot until the end. Healey, like Foot, 
had the same instincts: the only 
practical course was to seek to 
preserve the party. 

The man who was badly treated 
was Peter Shore, who once seemed 
Foot's candidate for the succession to 
James Callaghan as party leader. In 
I960 Foot forgot to tell Shore In 



time that he had decided to stand 
himself; the reason was that Foot was 
persuaded that he himself had the 
best chance of keeping the party 
together. Foot lost the general 
election of 1983 decisively, but the 
party survived. In the process, 
he had seen off the Social Democrats 
and Tony Benn and begun to resist 
the Militant Tendency. Perhaps we 
should give him the benefit of 
the doubt; no-one else could have 
done it 


Yet Foot is a much more attractive, 
eccentric man than those last few 
intensely political years suggest He 
was prone to accidents: he suffered 
seriously from eczema and asthma 
(hence his absence from the war), 
then bad a car crash, which relieved 
him of both, but left him lame: hence 
his famous stick. He received 
gratuities from Beaverbrook which it 
is unlikely that a politician would 
survive today, but one does not doubt 
his independence. He wrote 


wonderfully about Jonathan Swift 
and was one of the best speakers in 
the House of the Commons. His 
parliamentary ally was often Enoch 
Powell, who has also avoided the 
Lords. 

Some of this lively side comes out 
in the book; much of it is lost in the 
padding. The pity is that Foot is now 
spending his time writing about 
another hero: H.G. Wells. Typical 
Michael Foot, ft would be good to 
have the real memoir. 


Driven to nationalism 

Christian Tyler on the internal struggles of central Asia 


I n central Asia, always a hotbed 
of intrigue, an Intriguing con- 
test has been played out: in the 
red corner, socialism, which 
declared that the brotherhood of man 
would sweep nationalism away; In 
the green corner, Islam, believing 
that God would unite all races of the 
faithful; and, holding the ring, capi- 
talism, with Its promise of a material 
cornucopia. 

This is tbe subject of Dilip Hire's 
book. It is a compendious political 
guide to the internal struggles of 
central Asia and the south Caucasus, 
and marks their emergence as 
geopolitical entities in their awn 
right. 

Hire describes how the Bolsheviks' 
early policy of indulgent assimilation 
of the semi-nomadic races conquered 
by the Czars turned to economic 


exploitation and cultural and 
religious suppression. Gorbachev’s 
perestroika, aided by such revela- 
tions as the cotton scandal in Uzbeki- 
stan, destroyed what faith was left in 
the Kremlin planners. Islamic nation- 
alism was the natural recourse. 

And yet, as the author shows, the 
dire forecasts of western analysts 
have proved wrong. Civil strife did 
break out - notably in Azerbaijan 
and Tajikistan - but the presence of 
fundamentalist Islamic regimes 
across the southern border in Iran 


BETWEEN MARX AND 
MUHAMMAD 

by Dilip Hiro 

UarperCollins £23. 400 pages 


and Afghanistan did not set the 
region alight. 

The largely Sunni moslems of cen- 
tral Asia have little religious affinity 
with Shia Iran - though many sought 
refuge there over the years - while 
the government in Teheran has 


shown a pragmatic reluctance to let 
Its religious enthusiasm interfere 
with trading prospects. 

Turkey gloated at the prospect of a 
pan-Turkic alliance stretching virtu- 
ally to the Pacific not only was there 
a racial and linguistic connection and 
a coincidence of Sunni belief, bnt 
Turkey could offer commercial open- 
ings to the west. Yet when the Azeris 
looked to it for help against the 
Armenians, they looked in vain. 

Hiro says Turkey’s western assets, 
in this case membership of NATO, 


proved as much a liability. He 
concludes that Russia will continue 
to be the dominant force in central 
Asia and Azerbaijan, with Iran and 
Turkey jostling on the sidelines as 
complementary suitors. Moscow will 
treat its former Soviet subjects as 
client states, much as the OS treats 
the countries of central and south 
America. This is the reality which 
the UN appears already to have 
accepted. 

Travellers thirsty for the colour 
and romance of former Soviet central 
Asia will not find it in tills book. 
Dilip Hiro is a serious, methodical 
and objective historian of current 
affairs. But for the growing throng oF 
diplomats and businessmen with an 
Interest in the region - not least in 
Caspian oil - it must surely be 
required reading. 


Your business 
could depend on it! 


JOHN 
HMEY-JONES 

MANAGING 
TO SURVIVE 

A 6 E 1 UHT 8 
MmUKHEVr 
THR0I-&B 
THE HSUS 

oiiitking r«irf >»f a 
I hii-viik-H l]‘»ik" Fiftcn- iaf Times 


DON'T MISS his talk and signing 
on 28th March at Watcrstonecs, 

24 High Street, Birmingham at 6.00pm 


AVAILABLE FROM BOOKSHOPS EVERYWHERE 
To order your copy now dial credit card hotline 
0933 410511 quoting ref. MAN 1 

£5.99 



'Above all it 
rings true’ 
Financial Times 


‘A businessman 
who makes 
business 
exciting’ 
Sunday Times 



H ilary Mantel is 
generally agreed to 
be one of the most 
interesting and 
accomplished of the younger - 
or perhaps the middle - 
generation of our novelists. 
Her last book, A Place of 
Greater Safety, was praised for 
its portrait of Revolutionary 
France and won the Sunday 
Express prize as well as a few 
grumbles about its extreme 
length. A Change of Climate Is 
certain to consolidate this 
reputation. 

It tells of Ralph and Anna 
Eldred who have devoted then- 
lives to what used to be called 
Good Works. He is director of a 
charitable trust in Norfolk and 
London, and his wife assists 
and endorses him and runs 
their femily of four children. 
As Kit. the eldest, says. “My 
father is so bloody saintly it 
would make you sick, but the 
trouble is it's real, it’s all real. 
My mother . . . she’s saintly 
too”. 

The lives of the Eldreds 
unravel in the course of an 
East Anglian summer when 
their 20-year secret at last 
escapes. In the mid-1950s the 
Eldreds had been sent to South 
Africa to work with a mission. 
First they lived outside 
Pretoria In a freehold 
black township which, like 
Sophia town and Lady Selbome 
at that time, was to be 
razed by the apartheid 
government. 

They became politically 


Fiction 

Good Works 
go wrong 


involved, were arrested and 
jailed and eventually departed 
across the border to 
Bechuanaland.- There, in a 
wretched place on the edge of 
the Kalahari, they encountered 
catastrophe - a horrific 
tragedy the nature of which I 
imagine most reviewers will 
choose not to reveal. 


A CHANGE OF 
CLIMATE 
by Hilary Mantel 

ilking £15. 342 pages 


Hilary Mantel’s novel sets 
itself to describe, and to 
understand, the effect of this 
event on the subsequent lives 
of the Eldred Family. Ralph 
as a young man had believed 
in "the complex perfectibility 
of the human heart”. He is. 
and remains, a good man: 
"If we are not to be mere 
animals, or babies, we must 
always choose and choose to 
do good". 

He struggles to make sense 
of the episode in the 
Bechuanaland bush and to 


come to terms with any 
responsibility: "I accept that I 
made choices and they were 
wrong, hut then I think, too, 
that our lives have been ruined 
by malign chance. I do not see 
any pattern here, any sense, 
any reason why this had to 
happen . . ." 

Back in Norfolk, his 
innocence still guarded by 
Anna, he determines to keep 
going - which, as his wise 
sister warns him, is typical of a 
man and will be at the expense 
of the people around him. 
Because - as she also believes 
- women turn inwards; they 
fall ill; and, in Anna's case, 
they are destroyed. 

Don't worry, Anna says, she 
won't be a problem, "We're 
professional Christians, aren't 
we, Ralph and me?" But one 
day, as the children approach 
adulthood and her husband 
fells In love with a simpler, 
less anguished woman, she 
cracks. 

This is, I hope it Is clear, 
a serious and intelligent novel 
about difficult themes - the 
nature of evil, of forgiveness, 


of suppression, of acceptance. 
Not that there is anything 
laboured or theoretical about 
the depiction of these 
philosophies. The Eldred 
family is particularly 
well done, the children 
and their friends all 
vividly and sympathetically 
realised. 

Ms Mantel evidently has an 
equal familiarity with both 
Norfolk and southern Africa: 
she catches, for instance, the 
embarrassed ambivalence of 
well-meaning foreigners when 
they encounter the African 
reality - “The village men 
were meagre, spiritless and 
skinny. The women were great 
tubes of Eat, blown out with 
carbohydrate . . . Their voices 
were harsh, monotonous, 
somehow triumphaL God help 
me, Anna thought: but I don’t 
like them, perhaps I fear them. 
These feelings were a violation 
of everything she expected 
from herself, of all her 
principles and habits of 
mind . . .” 

My only hesitation is that, 
because the novelist's beam 
plays over so many characters, 
Ralph and Anna both remain 
a fraction under-exposed. They 
remain always at a certain 
distance. We recognise them, 
but we do not enter their 
private lives, and so we are 
Impressed where we should be 
moved. Many readers will, 1 am 
sure, disagree with me. 

J*D.F: Jones 


Adventures 


of ‘Boz’ 


Anthony Curtis 
early sketches 

T his volume of Dick- 
ens’ journalism, num- 
ber one of a proposed 
four, starts in the 
1830s when Dickens was 
employed as a reporter in the 
press gallery at Westminster 
Palace (before the present 
Houses of Parliament were 
built). His job was to record 
the debates for newspaper pub- 
lication the following day. 
Grinding work but Dickens, 
who was barely 20 and who 

bad taught hims elf shorthand, 
was highly skilled at it. He 
soon became known as the 
king of the gallery and he 
regarded the discipline he 
acquired during his time there 
os the foundation-stone of his 
literary career. 

When Dickens was not at 
Parliament he made space to 
do some Imaginative writing of 
his own, sketches of London 
life that were published in The 
Morning Chronicle and its 
recently started evening coun- 
terpart He signed these liter- 
ary pieces with the pseudonym 
“Boz" - borrowed from The 
Vicar of Wakefield, Goldsmith 
iwng one of his models. 

Dickens was therefore two 
kinds of journalist simulta- 
neously. A fully paid-up mem- 
ber of the NUJ, as it were, writ- 
ing anonymous reports in the 
Chronicle, and under his 
pseudonymous Boz hat, a jour- 
nalist in the sense that Sirae- 
non and Damon Runyon were 
journalists. All penetrated the 
mean streets of a capital city, 
sometimes the affluent streets 
too, making authentic popular 
fiction out of the lives and 
crimes of the people they 
observed there. This tradition 
of “faction" still flourishes. 

To read this book is to 
inhabit the aggressive, noisy, 
teeming world of a rapidly 
expanding London just before 
the young Queen Victoria suc- 
ceeded to the throne. To boost 
the family budget, the boy 
Dickens was cooped up for 
long hours in a warehouse 
near Hungertord Stairs stick- 
ing labels on bottles of black- 
ing. Once he escaped he 
roamed far and wide through- 


enjoys Dickens 
of London life 

out the capital and Its sur- 
rounding villages, his sharp 
eyes ever on the alert. All he 
assimilated he then recycled 
in a series of Sketches, Charac- 
ters and Tales composed by 
Boz. 

Michael Slater, the professor 
of Victorian literature at Birk- 
beck College, the editor of the 
edition, describes their compli- 
cated publishing history In 
both periodical and book form. 
They were an instant success 
from the moment they were 
published, a fact that has 
tended to be obscured by the 
even more phenomenal success 
of Pickwick in 1836. Even after 
that Dickens continued to 
write Boz pieces to meet the 
continuing demand for them. 

Although a narrative ele- 
ment is never far below the 
surface, it is at descriptive 
writing that Boz excels. His 
portraits of the convivial 
places of puhlic entertainment, 
Astley's Amphitheatre, Vaux- 
hali Gardens, Greenwich Fair 


DICKENS' 

JOURNALISM: VOL. I 
edited by Micbael 
Slater 

Dent £30. SW) pages 


contrast with his depictions of 
the backstreets around Seven 
Dials, the sewing women earn- 
ing a pittance there, and the 
wretched customers of the 
pawnbrokers. Boz caught them 
all with an ironic phrase or 
two; he applauded resourceful- 
ness in adversity while he 
ruthlessly punctured the pom- 
posity of the well-off. 

Even at the height of his 
later fame Dickens never 
wholly gave up journalism. He 
edited periodicals - Bentley's 
Miscellany and Master Hum- 
phrey's Clock - which he filled 
largely with his own contribu- 
tions. He helped to found a 
new newspaper. The Daily 
Chronicle, and for a while 
edited it The subsequent vol- 
umes will contain his work of 
this later period. Meanwhile 
the edition has got off to an 
excellent start 


Thrills in the 
bond market 


Y ou have to admire 
Paul Erdman’s 
nerve in writing a 
thriller based on 
municipal bonds. As a charac- 
ter In his story says, they are 
“so mundane, so tedious, so 
pedestrian". At least the 
author managed to find a 
catchier title than Capital 
Appreciation Bonds, the alter- 
native description of the epon- 
ymous income-free securities. 

To be fair, the novel does not 
by any means entirely revolve 
around zero coupon munis. It 
races along at a fair lick unless 
you unwisely stop to consider 
feult lines in the plot. Much 
more extravagantly it climaxes 
with a late 1995 German politi- 
cal crisis in which the chancel- 
lor is exposed for corruption, 
the Bundesbank chairman 
resigns and his successor 
shoots himself for failing to 
save the D-Mark, which suffers 
the same fate as sterling in 
September 1992. Norman Lam- 
ont, at least, would enjoy this. 

After three years in jail for a 
junk bond scam, Willy Saxon 
emerges in mid- 1995 with $75m 
stashed away in Liechtenstein 
and an ambition to get right 
back into the game. He does 
not want to end up like poor 
old Bemie Corofeld, a dead-end 
46-year-old surrounded by 
champagne and girls. 

So without even a tuxedo to 
Ms name, he moves into typi- 
cal financial tbrillerland - San 
Francisco - where everybody 
can be bribed, bullied, black- 
mailed or laid. He has spent 
most of his time in the correc- 
tional institution in the 
library, picking up information 
technology knowhow, and 
before you can say Sparcserver 
workstation he is corrupting 
cronies in the lend of Califor- 
nian restaurant where Pmot 
Griffio is considered the last 
word in sophistication. Paus- 
ing only to explain to the occa- 
sional glamorous billionaire 
widow the virtues of tax-free 
municipal bonds, Saxon is soon 
Jetsetting across the globe. 

Erri man's brand name-drop- 
ping style, with regular men- 
tion of real people, suffers from 
poor research, however. Saxon 
travels on an airline named 
British Air, and for some rea- 
son thinks George Soros runs 
Quantum Fund out of London 
rather than New York. Erdman 
also believes that the City of 
London would be open for busi- 


ness on Monday January 2. 
Incidentally, names like Clar- 
idge’s, Barron's, Warren Buf- 
fett and (occasionally) Deut- 
sche Bank are wrongly spelt. 

The plot revolves around 
Saxon's plans to buy a collaps- 
ing investment bank called 
Prescott & Quackenbush and 
turn it Into an aggressive 
trader in derivatives. Along the 
way he picks up a stake in a 
dodgy credit rating agency to 
help him stuff a dozy invest- 
ment institution with fraudu- 
lent bonds. But his big coup is 
to turn a hastily-assembled col- 
lection of former jailbirds and 
disgraced ex-Volkswagen cur- 
rency traders into the hottest 
derivatives team since the days 
of Liar's Poker. When Germany 
suffers political and financial 


ZERO COUPON 

by Paul Erdman 

Macmillan £14 99. 350 pages 


collapse just after Christmas 
they are somehow the only 
people to notice and short the 
DM before the markets close 
for the New Year holiday. Poor 
old George Soros is left trailing 
behind, although at least by 
this time he has moved as far 
as New Jersey. 

There is the required over- 
dose of financial m umbo- 
jumbo, Including talk of non- 
linear analysis through neural 
networks and genetic algo- 
rithms, and trading in a vari- 
ety of semi-plausible products 
ranging from reverse floaters 
to index currency option notes. 
Only occasionally, fortunately, 
are there paragraphs of turgid 
explanation. Zero coupon 
bonds are, of course, by no 
means a figment of the lurid 
novelist's imagination 
although the variant described 
here appears to be more on the 
lines of the zero coupon perpet- 
uate occasionally touted 
around the bond markets on 
April l. 

Paul Erdman puts the non- 
sense over with considerable 
style, and the book could help 
to while away a flight on Brit- 
ish Air, whatever that may be. 
But after Willy Saxon pockets 
his profit tbe grim fete of Ger- 
many la left to the imagina- 
tion, just as it arouses the 
reader’s curiosity-, better not 
read it on Lufthansa. 

Barry Riley 






1 1 




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* 


ARTS 


a & a 

Two of the mo st important names in 20th-century ballet are under the spotlight once more 

Choreographer to the great 

D oland Petit celebrated bis ent, de Chirico. Tinguely. Erie and the new pieces he has made for the Op§ra and Wilfried Romoli) are no less fe 
70th birthday in January, graffiti artist Keith Haring, are among Ballet. The thread on which they hang though the cream of the ballet lies in 

hmvwsrihle. Of course: the th/w vhn have dMintd hie nmrfn/«_ ie cmmc hir mmnnmiv nf iho nnnv) fiwf aontinn mhaM DnKr Dtntap hip m 



Dance-actor of tremendous afture: the young Roland Petit with hftne Skorik in ‘La Rancde du Diablo 1 


R oland Petit celebrated his 
70th birthday in January. 
Impossible, of course: the 
reference books lie. for 
this spirit of French bal- 
let, French theatre, remains what he 
has always been, a creator (and an 
interpreter) of prodigious vitality, wit, 
and dramatic flair. And as if to prove it. 
Petit last week produced three new 
works for the Paris Opgra Ballet, their 
elegance and passion showing Mm as 
dazzlingly a man of the theatre as ever. 
It is the sheer craft the mastery of 
means, that alone tell Petit's age and 
experience: no young choreographer 
today could be as daring and tread the 
creative high wire with such aplomb. 

It is fitting that Petit should mark 
this anniversary in the Palais Gamier, 
in which he grew up as pupil and 
apprentice dancer. He was, and he 
remains, the very essence of Parisian 
theatre. By 1945 he had fled its musty 
confines, had made Ms first creations, 
and had gained the friendship and sup- 
port of some of the most significant 
artistic figures in Paris - Kochno, Ber- 
ard. Cocteau, Laurencin. His ballets of 
that period - Les Fomins with its 
troupe of strolling players, its insidious 
Sauguet score, its miraculous design fay 
B6rard of a cart and a piece of red cloth; 
Le Jeune Homme et la mart, where 
death comes to a youth in a garret, 
beneath the flash of the Citroen sign - 
remain among the truest examples of 
French culture as the war years gave 
way to a renaissance of theatre, Cash- 
ion, art, which Petit's ballets typified. 

P etit has always been an admi- 
rable indicator of the newest 
ideas; has joyously explored 
ballet, theatre, cinema, music 
hall, often with Ms wife and muse, Zizi 
Jeanmaire; and has in everything b ee n 
stylish, vivid, and - rarest virtue - 
totally unpompous. His eye for desig n is 
unrivalled in the history of ballet, 
whence the tact that Picasso and Dior, 
Max Ernst. David Hockney, Paul Del- 
vaux, Antoni Clave, Yves Saint Laur- 


ent de Chirico. Tinguely. Erie and the 
graffiti artist Keith Haring, are among 
those who have decorated Ms produc- 
tions. 

His sense of occasion. Ms ability to 
frame and pnhanpp a dancer, have led 
to creations that have been worthy of 
Fonteyn, exquisite as the cat heroine of 
Les Demoiselles de la mat, of Baryshni- 
kov, as Herman in Queen of Spatter, of 
Makarova, as The Blue Angel ; of Pliset- 
skaya in La Rose malade ; of Peter 
Schaufuss as the Phantom of the Opera. 
His stagings for Jeanmaire have taken 
audiences from ballet (Zizi as the first 
the only Carmen) to cinema (Zizi and 
Bing Crosby in Anything Goes), and 
music hall {Zizi, positively ZTmssima. 
surrounded by ses boys, a mass of featb- 


new pieces he has made for the 0p6ra 
Ballet. The thread on wMch they hang 
is scores by composers of tbe second 
Viennese school The opening Passa- 
caille uses Webern's opus 5 orchestral 
suite and the opus 1 Passacaglia. Tbe 
choreography is plotless, the stage bare, 
the forces are a central couple - Agnes 
Letestu and Jose Martinez - with an 
attendant group of six couples. Costum- 
ing, by Hervt Ldger, offers white, exigu- 
ous tops and skins or briefs, the women 
crowned with Nefertiti-like caps. The 
image is of the Pharoahs on the beach 
at Cannes, and is ineffably stylish. And 
so is the dance, wMch looks hieratic, 
off-beat, and is stunningly done. 

There follows Rythme de valses, with 
a chamber group at the back of the 


The elegance and passion of Roland Petit’s 
latest work show him as dazzlingly a man 
of the theatre as ever, says Clement Crisp 


ere, and those miraculous legs set to 
conquer the world). And there has been 
Petit as director for the past two 
decades of the fine Ballet de Marseille, 
for which he has maHp an astonishing 
variety of work. 

For Petit is a consummate man of the 
theatre. He ba$ been, remains, a 
dance-actor of tremendous allure. He 
has made memorably good full-length 
ballets: Cyrano dazzled by Its economy 
and imaginative wit; Les MtermiCtence 
du coeur was a poetically sensitive 
exploration of Proust's world; Notre 
Dame de Paris and The Phantom of the 
Opera were hymns to Ills native city as 
well as skilful adaptations of two popu- 
lar novels. He has re-made, gracefully, 
ballets' classics - a Joyous CoppHia, an 
unfailingly happy Nutcracker. He has 
even published a volume of memoirs, 
J'ai dansS sur les flats, which is a series 
of ii gbtnfng sketches of his work and 
friends, and like his choreography and 
Ms ffanring , blazes with life. 

The life-force is strong in the three 


stage playing the Strauss waltzes that 
Berg, Webern and Schoenberg orches- 
trated for a musical evening. Three cou- 
ples are each occupied with their own 
number, then united for the closing 
Emperor Waltz. The girls appear wear- 
ing L&ger’s ballooning skirts, then step 
out of them to dance in striped leotards. 
Their partners are in vestigial Hussar 
outfits. We are, we may suppose, to see 
the skeleton of the waltz itself. Not 
even that! With what I salute as his 
conjuring tricks. Petit makes each cou- 
ple do everything except waltz. They 
mak e jokes, hint at mad steps, stretch, 
strut embroider movement ideas and. 
yes, they are inhabited by the insidious 
onward pulse of the waltz itself. 

The piece is a capriccio by a master, 
most successful I think, in the opening 
waltz which is done with adorable and 
youthful ease by Aurelie Dupont and 
Eric QuiUere. MUe Dupont is beautiful 
entrancingly cool; Quiller# is ardent 
brilliant The other couples (Carole 
Arbo and Lionel Delanoe; Fanny Gaida 


and Wilfried Romoli) are no less feat, 
though the cream of the ballet lies in its 
first section, where Petit states his cun- 
ning choreograpMc thesis. 

P etit's dramatic taste has often 
seemed haunted by death, and 
□ever more violently or more 
frankly so than in the Camera 
Obscum which closes the bill This is a 
trio whose emotional situation was 
sparked off by Nabokov's novel. Laugh- 
ter in the dark. Petit subtitles it Love is 
blind, and tbe love of the wealthy Albi- 
□us (Patrick Dupond) for a sluttish cin- 
ema usherette, Margot (Marie Claude 
Pietragalla). is blind in its obsession, as 
in the fact that he is deprived of sight 
after a car accident. Albinus becomes 
aware of Margot's passion for the young 
Rex (Nicolas Le Riche). He seeks to 
shoot him. but is. instead, shot by Mar- 
got. 

It is not this grubby narrative that 
occupies Petit, but its inner world of 
sexual obsession. To convey it. Lhe cho- 
reography becomes more frank, more 
greedily sensual than anything I have 
seen from him before, the dramatic 
scheme more allusive and more potent. 
The score, assembled from Schoenberg 
piano works, is ideally resonant Perfor- 
mances, like the feelings they convey, 
are Incandescent Pietragalla. presented 
as irresistible flesh, is superb. Dupond 
catches all Albinus’ sexual hunger Le 
Riche admirably shows Rex's luscious 
physical allure as well as his miserable 
lack of courage. 

Once again. Petit has ill umina ted the 
gifts of exceptional dancers. Once 
again, with Bernard Michel's light-in- 
stallation of a set - neon, lasers - he 
has shown a way forward in stage imag- 
ery. Once again, he has demonstrated 
that panache, that unerring under- 
standing of the theatre - where ballet, 
let us never forget, must live and flour- 
ish - wMch has always fired his art, as 
creator, performer, director. 

The Petit programme is at the Opera 
Gamier, Paris, on March 19, 21, 22. 


A 


fter four years and 
ten tours, Mikhail 
Baryshnikov's mod- 
ern dance troupe, 
the White Oak Dance Project, 
finally opened in New York 
last week. Why had Baryshni- 
kov avoided New York for so 
long? Was it - as certain New 
York reviewers asked with 
obvious satisfaction - because 
of the New York reviewers? 
Maybe a little. Baryshnikov's 
nine controversial years as 
director of American Ballet 
Theater (198039) did not leave 
him with tender feelings either 
toward large dance companies 
or toward the New York dance 
world, with its “politics and 
policies." as he put it darkly in 
a recent interview with The 
Nett' York Times. 

When, after leaving ABT. he 
founded White Oak, he said 
that this troupe would be "for 


Today’s most famous dancer 


fun.” He wanted to experiment, 
in a relaxed atmosphere. That 
is why he hired older dancers. 
(The company's age range is 31 
to 46: no teenagers, no hyste- 
ria.) And that, no doubt, is why 
be did did not rush to arrange 
a New York season, which, for 
almost any company, is a 
tense, over-advertised, over-an- 
alysed, money-losing business. 

About money, he need not 
have worried. Baryshnikov is 
still the world's most famous 
dancer, and he performs at 
every White Oak show. Given 
that fact. White Oak normally 
sells out any theatre it enters. 
New York State Theater was 
no exception. When Baryshni- 
kov stepped onstage on open- 


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A major rctro.spcctiw of a unique 
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ing night, so many flashbulbs 
went off that it looked as 
though someone had turned on 
a strobe light. (Later perfor- 
mances began with a stern 
announcement forbidding cam- 
eras.) New York may be a 
tough town but It still loves a 
star. 

This very fact - that Barysh- 
nikov alone sells tickets - has 
led some writers to ask where 
White Oak would be without 
him. But such questioning 
implies that all Baryshnikov 
does at White Oak is dance, 
wMch is not the case. It was he 
who selected this largely excel- 
lent company, he also chose, 
and pays for, the superb six- 
person musical ensemble, 
headed by Michael Boriskin, 
that accompanies the troupe’s 
performances. (Live music is 
now a rarity at American mod- 
ern dance performances.) 
Filially, Baryshnikov is the one 
who put together White Oak's 
repertory, and it is stamped all 
over with his ideas, his history. 

Baryshnikov defected from 
the Soviet Union in 1974 


because he wanted to dance 
new roles, not just Swan Lake 
and Giselle. But in feet he 
spent most of Ms early years in 
the West perfo rming the “clas- 
sics”, for that is what audi- 
ences wanted to see him in. 
Twyla Tharp created a number 

Joan Acocella 
reviews 
Baryshnikov s 
White Oak 
Project 


of brilliant jazz-based dances 
for him, and he put in guest 
appearances with various mod- 
em dance companies. SHU he 
hart a hard time breaking out 
of the “prince” track, and this 
left him with an extreme rever- 
ence for American modem 
dance. He has made White 
Oak’s recent repertory a show- 
case for that tradition, with 
works by Graham, Hanya 


Holm, Jane Dudley, Paul Tay- 
lor, David Gordon, Meredith 
Monk. In the process, he has 
saved some lovely pieces, such 
as Holm's Jocose from oblivion. 

For the New York season he 
added a Metre Cunningham 
piece, the 1970 Signals. Signals 
looks vaguely like a weekend 
party. People are lounging 
around in chairs. One by one. 
they come forward to dance 
introspective solos and duets; 
then they return to the group. 
It is as if we were seeing their 
public lives upstage, their pri- 
vate lives down-stage. 

In White Oak’s hands, Sig- 
nals did not have quite the 
same high-ozone purity as 
when It is danced by its home 
troupe, but that is always the 
case when a Cunningham piece 
is set on another company, and 
the lyric power of White Oak's 
rendition is a testament to the 
strength of Cunningham's 
woik. 

But Baryshnikov does not 
just restage modem dance; he 
commissions it His success is 
this department is mixed. New 


to the repertory this season 
were works by two young cho- 
reographers. Kevin O’Day, a 
White Oak dancer, presented 
the sweet-tempered and well- 
made Quartet for IV, to music 
by Kevin Volans; and Joachim 
Schlomer. director of Ger- 
many's Ulm Ballet, contributed 
Behind White Lilies, an agonis- 
ingly boring work in which, to 
judge from their stabbing, pal- 
sied movements, the six-person 
cast underwent some extreme 
hardship (the decline of the 
West? the crisis of modem 
belief?) to the accompaniment 
of Schonberg's String Trio. 


T 





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he most important 
commission of the 
season, however, was 
Jerome Robbins's 
Suite of Dances, a solo for Bar- 
yshnikov to four movements 
from Bach’s Suite for Solo 
Cello (played onstage by 
Wendy Sutter), and this was a 
real little beauty. Like much of 
Robbins's work, it is about the 
relations between “natural'’ 
movement and dance move- 
ment, but in tbe relations that 
Robbins creates going, for 
example, from what looks like 
any old hop to a pas de dial to 
a stag leap to a grand jeti - we 
seem to see ballet flowering, 
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This illusion is abetted, need- 
less to say, by the feet that the 
dancer is Baryshnikov. At 46 
he still has a tho usand steps, 
and a line so beautiful that it 
brings tears to your eyes. But 
what this dance showcased 



Baryshnikov: at 46, ha sta has a thousand stops 


was his musical imagination, 
the sheer breadth of his 
response to music - comic, 
tragic, puckish, misterioso - 
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into being. 

This was not a solo; it was a 
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Bach, staged by a third master. 
Robbins. If Baryshnikov’s feme 
is what sells tickets to White 


Oak, the tickets are worth 
every penny. 


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April 23; Florence, April 28); 
then, from May through July, 
the US and Canada (Philadel- 
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Vancouver, and other cities). 


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ARTS 


Reputations 

reassessed 

William Packer admires the work of 
neglected British painters 





S uch is the modem emphasis 
on youth that we are inclined 
to forget that talent is not its 
sole preserve. Too often, it 
takes a death to remind us just what 
commitment, experience, gifts and 
achievement may lie buried in a long 
and quiet career. 

Patrick Symons. In Paris last 
autumn to see the Barnes Collection, 
stepped carelessly under a bus and 
was killed. He was 68. Although by 
then RA, he was hardly widely 
known. There had been no retrospec- 
tive at a great public gallery, no tours 
abroad and but four solo shows in 
dealers' galleries in more than 30 
years. Yet among bis peers his reputa- 
tion stood high for the steadiness and 
Integrity of what he did. He had 
taught over many years, first at Cam- 
berwell where he had studied, and 
then at Chelsea. In his quiet and mod- 
est way, he had been an influence. 

To look now at his worts in its slow 
and steady development over some 50 
years - at the still-lifes, the interiors, 
the musicians engrossed in present 
activity, above all at the densely 
wooded landscapes that were his spe- 
cial subject - Is to recognise painting 
of an order rare enough in his day, 
and getting rarer every year. To speak 
of it as modest is to risk that very 
English vice or understatement The 
truth is that its proper modesty, its 
unaffected, unselfconscious engage- 
ment with the work itself, is its great- 
est strength. For here are no histrion- 
ics, no showings-off and, no less 
important no shallow sentimentality. 
Here, rather, is something educated, 
committed and complete. 

It is painting founded in the true 
academic disciplines of observation, 
analysis and technical probity. In our 
wisdom we no longer pass on such 
things to younger artists, yet here, 
safe with a surprising number of their 
seniors, the tradition is not yet dead. 
We should celebrate it while we may, 
for it is to be found nowhere else. In 
any other country, Symons would 
have been a star. 

Rusldn Spear, also RA, died in 1990 
at he age of 79. His too was a painters' 


S ome time, around 200 
BC on Salisbury Plain, 
a local Celt buried over 
400 of his most pre- 
cious objects. They consisted of 
shields, axes and daggers, but 
probably had a religious rather 
than a military significance. 
For many of the pieces were 
ancient to him, dating back to 
1800 BC, and too tiny and brit- 
tle for warfare. 

In 1985 some metal detector 
enthusiasts came across the 
hoard. I£ they had acted legally 
and gone to the local land- 
owner, they would have 
become rich and the nation 
would have gained access to an 
archaeological site of great 
importance, perhaps a temple 
which held our ancestors in 
thrall for over a millennium. 

Instead they photographed 
the objects and went to the 
dealers in antiquities. And 
once more the the nation’s fee- 
ble attempts to conserve its 
past was in jeopardy. Now 
some of the objects are in the 
US and Japan; some have dis- 
appeared; many, fortunately, 
are in the British Museum; and 
the police are conducting an 
investigation into the affair. 

This find was so important 
that it was almost certain to 
attract attention. In this case a 
reputable dealer. Lord 
Me Alpine, sold some of the 
objects to the British Museum 
for £55,000. The tiny shields 
aroused interest and, as more 
came to light, the Museum 
made contact with the original 
finders, saw the photographs, 
and realised the importance of 
the discovery. 

There is still much to sort 
out, but if the standard proce- 
dures had been followed, and 


painter reputation, bis gifts masked 
by a conspicuous facility and a career 
committed to the art school studio 
rather than his own. He taught at the 
Royal College bam the 1940s to the 
1970s and it is now clear that his was 
a formative influence upon the 
Kitchen Sink painters of the 1950s, 
and the subsequent emergence of Pop 
Art in its British manifestation. 

It is the fate of the great teacher to 
see bis pupils’ often lesser talents 
flourish before his own. and Spear 
was never acknowledged as he 
deserved. He was never taken seri- 
ously because he seemed never to 
take himself seriously. It was all very 
well for a Hockney or a Blake to enjoy 
hims elf with pin ups, post-cards, shop- 
fronts, but that was youthful exuber- 
ance. For Spear to work from newspa- 
per photographs, as Sickert had 
before him, was quite another thing. 

But how well they last, these 
extravagant, wry, funny images of 
daily life: Mrs Thatcher as the bluest 
rinse of all; the fashion model’s teeter- 
ing walk and scarlet mouth. Above 
all, what good paintings they are, 
seen now in the broader working con- 
text of pub interiors, market stalls 
and Hammersmith streets, as lovingly 
understood and knowingly painted as 
by any artist of our time. As a painter 
of daily life, Spear stood alone. 

Roland Collins, in his 70s, is still 
with os. He is a topographical artist of 
a generation later than that of Eric 
Ra villous and Edward Bawden, yet 
Ids work at its best stands direct com- 
parison with theirs. His large 
gouaches and water-colours take us to 
Dieppe and Brighton, along the 
watering places of the Kent and Sus- 
sex coasts, and so hack to London 
and, in a particularly splendid 
sequence of images, to the mews and 
backstreets of Belgravia in the 1950s. 

Patrick Symons: Browse & Darby, 19 
Cork Street Wl, until April 16. Ras- 
kin Spear: Crane Kalman Gallery. 178 
Brampton Road SW3, until April 16. 
Roland Co llins : Michael Parkin Gal- 
lery. U Motcomb Street SW1, until 
April 15. 



Educated, committed and complete: 'Woman playing a cello' by Patrick Symons 


Greedy for antiquities 

Antony Thorncroft discusses the need for the treasure trove bill 


the cache reported to the Brit- 
ish Museum, the metal detec- 
tor enthusiasts - and the land- 
owner - would have shared a 
substantial sum. Instead, it 
was the dealers who did well 
out of the find. 

A new treasure bill, put for- 
ward by the British Museum 
and the Surrey Archaeological 
Society, has now started its 
laborious progress towards the 
statute books - and about 
time, too. The law of treasure 
trove, dating back to the Mid- 
dle Ages and created to ensure 
that the monarch grabbed any 
hidden gold and silver, bore no 
relation to modern reality and 
gave limited incentive to find- 
ers of hidden treasures to 
declare them. The British 
Museum reckons that hun- 
dreds of thousands of objects 
are discovered each year, but 
no more than 20 or 30 finds are 
declared treasure trove and 
channelled towards a museum. 

Over the years the losses 
have been tragic, in 1990 a 
hoard of Iron Age tores, brace- 
lets and ingots was discovered 
at Snettisham in Norfolk, but 
because some of the objects 
were 50 per cent or more base 
metal only a few of higher 
purity qualified as treasure 
trove and were kept together. 

In 1986, the Middleham 
Jewel, a late 15th century reli- 
quary. unearthed In a field In 
Yorkshire, was sold at Sothe- 
by’s for £1.43m because it could 


not be proved that it had been 
hidden by its original owner, 
which would have made it 
treasure trove, rather than 
lost. Fortunately it was 
acquired by the Yorkshire 
Museum. In law even the Sut- 
ton Hoo burial ship, the great- 
est ever Anglo Saxon find, was 
not treasure trove, and only 
the generosity of the land- 
owner enabled it to end up in 
the British Museum. 


It is the same with the Salis- 
bury Plain discovery: it con- 
tains no objects of gold and 
silver and is not covered by 
either old treasure trove - or 
the new treasure bill, although 
this does contain a clause leav- 
ing open the opportunity to 
extend its scope. This is one 
reason why the Department of 
National Heritage was suspi- 
cious of the bill and wanted to 
substitute its own measure - 



What price would you put 
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Many elderly people from professional backgrounds 
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call us on 071 730 8203 or return the coupon. 

[" Here’s where to pot it. "jj 

I To: The General Secretary, Friends of the Elderly, I 
| 42 Ebury Street, London SW1W 0LZ. tg e a 



in time. If it became too com- 
prehensive it would involve 
the recording of every find, at 
considerable cost in staff and 
resources. But this week the 
government acknowledged the 
importance of the issue and 
seemed set to back some form 
of legislation. 

Under the new law proposed 
by the BM it would no longer 
be necessary to establish the 
original owners Intentions, and 
objects other than gold and sil- 
ver will be be given more pro- 
tection. There will also be a 
tightening of the legal process 
in the reporting of finds. But 
while there are treasure seek- 
ers. with detectors, supplying 
some unscrupulous dealers, 
the nation's heritage will be 
still be pillaged. 

Attention must be focused 
on dealers, and the auction 
houses, which have been 
accused of offering antiquities 
for sale without adequately 
researching their provenance. 
The auction houses say the 
problem is much exaggerated 
and and that photographs in 
their catalogues can lead to the 
uncovering or stolen antiqui- 
ties. 

Joe Och, of Sotheby’s, sits in 
the treasure trove reviewing 
committee which values finds 
legally reported, and believes 
that “this is an emotional sub- 



SOUTH BANK 

TeL'CC 071-323 3300 10r.m-9pm daily Charily 


CIS. Eia. Cfl. 09 (ONLY) 


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UdreBG 


Almost lost to the nation? One of the shields from Salisbury Plain 

FT Opera Offer 


; I ■ - 

i|| Address: 


.W 


| GIVE YOUR SUPPORT TO I \\ | 

I THE FRIENDS OF THE ELDERLY 8 

^ hgLUMd Od«fty£2G0£4. FT^J 


I f you are among the 
17,000 readers who 
applied for £10 tickets for 
a night at Covent Garden 
in the FT’s promotion last 
autumn - do not fret if you 
still await the call. The Royal 
Opera House is confident that 
everyone will get to see a per- 
formance this season. 

Katya Kabanova, which 
recently opened to excellent 

Chess No 1013 

1 b3- If axb3 2 Qxb3, or b4 2 
Qc4. or bxa5 2 Nc5, or N(c6) 
any 2 Ne5, or N(ffi) any 2 
Qxg6, or flQ+ 2 Qxfl, or gS 2 
Qf5, or g3 2 Qf3. 


reviews, should absorb some 
of the demand, along with 
long nuts of Carmen (although 
not with Domingo) and Figaro. 
Readers will be pleasantly sur- 
prised if they take up tickets 
to see Harrison Birtwistle's 
Gamin. 

In dance there is the stylish 
Don Quixote to come, as well 
as a Triple Bill, before the 
Royal Ballet goes on tour. Bir- 
mingham Royal Ballet comes 
down to fill the gap with its 
romantic new production Syl- 
via and its Triple BilL Covent 
Garden is adding a third tele- 
phone line In the hope of giv- 
ing readers a week’s notice of 
their proffered production. 



The Pinter 
spell is cast 


A mong the many and 
haunting ambigu- 
ities of Harold Pin- 
ter’s plays is this 
uncertainty: how real are 
these characters? The dream- 
logic (or nightmare-logic) with 
which they converse (or fail to 
converse) has long been 
famous, but as we watch a Pin- 
ter play we start to be unsure 
about whether they them- 
selves are meant to be natural- 
istic or not. 

Realistic figures suddenly 
appear surreal. Ordinary peo- 
ple turn, for a while, into cari- 
catures. and then back again. 
They may well undergo more 
than one such change. Watch- 
ing them, we never know for 
long where we are; and that is 
part of Pinter’s spell. 

Watching Dora Bryan in the 
National Theatre’s new stag- 
ing of The Birthday Farm - a 
brilliant piece of casting - we 
constantly shift in our take on 
Meg, the married landlady she 
{days, and thereby also In our 
take on the whole household 
she runs. Bryan has been 
famous, for decades now, for 
investing silly provincial 
working-class female charac- 
ters with a certain cartoon-like 
brightness. She brings to them 
her own fanny energy and 
qnavery nervousness, and 
makes them as memorable as 
characters in Dickens. What is 
marvellous In her Meg is that 
the play makes you sense 
strange and dark causes for 
her customary fretfulness, 

| fussiness, and stupidity. Even 
her brightness starts to regis- 
ter as a kind of escapism. 

And yet she is still funny. 
Petey, her husband, explains 
to her that the show currently 
at tiie Palace has no music or 
dancing. “What do they do 
then?” she asks in the manner 
of one who is just learning 
that there is no Santa dans. 
“They just talk,” bo replies. 
Bryan, registering this infer 
matiou, observes a properly 
Pinteresque pause. Then she 
just says “Oh." Her eyes 
(downcast but wide with 
alarm), mouth (sinking), and 
voice (tremulous) all convey 
the same uncomprehending 
distaste: and the audience guf- 
faws. 

We laugh partly because 
Pinter is joking at the expense 
of his own kind of theatre, of 
course, bat also because of 
how the single word "Oh" 
sums np Meg’s narrow mind. 
A show without singing or 
dancing belongs to that part of 
the world - like the mysteri- 
ous wheelbarrow of which she 
is terrified - which she 
chooses to avoid. 

Meg’s little fears are Just 
part of The Birthday Party’s 
strange fabric of menace and 
terror and evasion. She insists 
that it is the birthday of her 


again 


ject, like fur coats. We operate 
a free system in the UK which 
offers rewards rather than pen- 
alties." Undoubtedly more 
finds are reported in the UK 
than in most European coun- 
tries. In Italy, Greece, and Tur- 
key, prohibitive restrictions on 
the ownership of recovered 
objects ensures that most finds 
are sold Illegally. 

Important objects, turning 
up out of the blue, attract 
attention. When some distinc- 
tive Roman bronzes, discov- 
ered and spirited away from a 
farm at Icklingham in Suffolk, 
surfaced in New York, the 
landowner forced the new 
owner to promise to leave 
them to the British Museum in 
his will, guaranteeing some 
belated justice. 

There is also Lord North- 
ampton, who paid a group of 
dealers millions for the Sevso 
treasure, the finest hoard of 
late c lassical silver ever to sur- 
face. When he tried to sell it 
through Sotheby’s in 1990 for 
at least E40m, Croatia, Hun- 
gary and Lebanon all claimed 
it had been dug up on their 
land and belonged to them. 
Lord Northampton won the 
legal wrangle in New York but 
there has been an appeal and 
the silver still languishes in a 
bank vault. 

Such examples, and the sen- 
sibly modest improvements 
contained in the treasure bill, 
could help return antiquities to 
the antiquarians and the 
archaeologists and remove 
them from the grasp of oppor- 
tunists. 


lodger Stanley, though he 
insists it Is not She throws a 
party for him, though he 
spends most of it in blank non- 
participation. Later she says it 
was a lovely party, thongh 
during it he physically threat- 
ened both her and the play’s 
other female character, Lulu. 
He in turn Is threatened, and 
finally abducted, by two 
strange visitors, Goldberg and 
McCann (both of whom have 
their own fits of fright). Sam 
Mcndes, directing, heightens 
Stanley's occasional violence 
to women; and he makes Loin 
the kind or cartoon bimbo 
blonde we encounter In Dennis 
Potter’s fictions, with breasts 
polled np so high by her bra 
that they point upwards like 
telescopes. 

Mcndes has assembled all 
the ingredients for a first-class 
staging, not all of which had 
coalesced on the first night. 

A las fair 

Macaulay reviews 
‘The Birthday 
Par tv 1 


Anton Lesser traces all the 
various moods of Stanley - the 
play’s principal victim - with 
convincing skill, but makes an 
altogether less forceful impres- 
sion than Bryan. As Goldberg, 
the play’s most menacing fig- 
ure, Bob Peck certainly has 
force; he neatly conveys the 
character’s elements of suave 
deceit; and, after cuddling the 
buxom Lulu on his lap a while, 
he adds a hilarious touch of 
embarrassment, getting her to 
get np and crossing his tegs. 
But his manner Is too elabo- 
rate; his is an unrelaxed per- 
formance that keeps signalling 
its every effect to ns. 

Trevor Peacock (Petey) and 
Nicholas Woodeson (McCann) 
are both impeccable, and Woo- 
deson's grasp of the play’s 
fluctuations of threat and 
alarm is very fine. Emma 
Amos gives Lain a nicely 
bizarre comic brightness to 
match Bryan’s Meg. (They 
both remind ns how dose Pin- 
ter can sometimes seem to Joe 
Orton.) Tom Piper’s designs 
not only create an effectively 
realistic 1950s interior, but 
also introduce it with a drop- 
curtain of this town’s sandy 
seaside beach (where Petey 
works) and frames this partic- 
ular house against a back- 
ground of other identical 
bouses. This Is just one house 
among many. Is this house 
normal or abnormal? Who is 
to say wbat goes on in the 
others? 

In repertory at the Lyttelton 
Tbeatre. 


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™£I^ClAl^riME^VEEKEMO-MA1ZCH 19/MARCH 20 1994 

TELEVISION 


WEEKEND FT XXI 


CHESS 


•-■■■n r - •*£ ■• u*-+* 


13B News. 730 WalMng tho Dog. 7 JO Galaxy 

Goof-Ups. 8-15 CHucktoviaion. SJS The FUrta- 

lones. 930 Um ana Kicking. 

12.12 Weather. 

12.15 Grandstand. 12-20 Football Focus: 
Sob Wilson looks bach at last week- 
end' a FA Cup stem round. 1.00 
News. 1.05 Racing: A review of the 
leading honns. jockeys and trainers 
from the National Hum Festival at 
Cheltenham, 1.20 Rugby Union: Pre- 
view of the day's action. 235 Rugby 
Union: England v Wales. Live cover- 
age at the Five Nations Chan^ton- 
ahip match from Twickenham, as 
Wales strive to achieve their first 
Grand Slam title since 1978 by 
repeating last season's Carrfiff vic- 
tory. Nigel Starmsr-Smith and Eddie 
Butler commentate. 4.15 Rugby 
Union: Scotland v France. Highlights 
from Murrayfieid. Can the Scottish 
XV achieve its eighth consecutive 
home win over the French? Com- 
mentary by BiH McLaren and John 
Jeffrey. 4.40 Final Score. Times may 
vary. 

B.15 News. 

&25 Regional News and Sport 

5.30 Tom and Jerry Double BfH. 

5-45 The New Adventures of Supers 

man. Lots's life la endangered when 
she witnesses the murder of a sci- 
entist by a gang determinted to 
destroy the Amazon rain forests. 

030 NoePs House Party. Noel Edmonds 
hosts more tun and mayhem from 
Crkiktey Bottom as Dr Who Jon Par- 
twee is awarded a Gotcha and 
showjumping star Lucinda Green 
tries fo Grab a Grand. 

7.30 Big Break. Joe Johnson, Paul 
Davies and David Tayfor help con- 
testants compete for the Star prize. 

8- 00 Do the Right Thing. Terry Wogan 

hosts the proceedings as Fleet 
Street editors Andrew Ned and Eve 
Potard Join regular panelist Frank 
Skinner to tackle an ethical dilemma. 

a 40 Birds of a Feather. Sharon and 
Tracey help out when mart-hungry 
neighbour Dorian suffers a irtd-Dfe 
crisis. 

9- 15 That's LKei Esther Rantzen presents 

a selection or hvd-hittfng Investiga- 
tions and real-fife humour. 

0J55 News and Spot; Weather. 

10.15 Match of the Day. 

11.15 Flm: Siege at Marion. A fanatical 
religious cuffs defiance of authority 
culminates In a tense stand-off with 
the police and FBL Fad-based 
drama, starring Ed Begley Jnr, Den- 
nis Franz and less Harper (1992). 

12.45 Weather. 

1230 Close. 


800 Open University. 12,15 pm FSm: Station West. 

1.45 Great Crimes and Trials of the 
20th Century. Robert Powell reas- 
sesses the evidence fo the case of 
Dr Samuel Sheppard, who was 
“harged with murdering hts wtte to 
1954. 

2.10 Horizon. Discoveries casting new 
light on the evolution of the brain, 
suggesting possible solutions to 

questions that have long baffled sci- 
entists. 

3-00 Those Fabulous downs. The his- 
tory of the down, from early per- 
formers ISce Joseph Grimaldi to later 
stas such as Charite Chaplin. 

3-40 Fffrre The Gypsy and the Gentle- 
man. The lata Mefina Mercouri plays 
a passionate gypsy who has an 
affair with an Impoverished noble- 
man. Melodrama, also starring Keith 
MJche# (1858). 

5.25 Late Again. Highlights from last 
week's The Lata Show. 

5.15 Scrutiny, insight Into the work of 
parliamentary co mm itt e es. 

•-45 News and Sport; Weather. 

7.00 Crufts: Best of Breeds. Peter 
Purves. Jessica Holm and Mke 
Stockman meet the winners from all 
groups. Including the terriers, 

Pounds and gurtdogsL 

730 The Giant Awakes. The second of 
three films on the Chinese economy 
Investigates the Increased number of 
loss-making state Industries being 
destroyed by a new generation of 
competitors. 

8-40 Unplugged. An acoustic sat by 
Ston John recorded in 1990. 

038 Arena. The Watery of the Kalash- 
nikov AK-47 assault rifle, the 
favoured weapon of terrorists, mer- 
cenaries and freedom fighters world- 
wide. 

10.15 Between the Unas. Clark is caught 
In the cross fi re when Customs and 
Excise and the river police dash 
over a drug smuggling Investigation. 
Shown previously on BBC1. 

1135 Crimes and Passions. 

Award-winning documentary chart- 
ing the tragic story of Gina, a young 
French girl whose traumatic experi- 
ences began at the hands of her 
abusive fattier. 

1235 Film: Lee Dtabofiques. A tyrannical 

schoolmaster b murdered by his 
wife and mistress - but the body 
iHter disappears, and evidence of hb 
presence continuafly haunts them. 
Classic chUar. with Simone SJg- 
nonrt, Vera Ckxizot and Paul Meu- 
rfss (1957). (English srttttfes). 

2.10 Close. 


SATURDAY 


(LOO GMTV. ft* What's Up Doc? 11 JO The rTV 

Chert Show. 113D pm Speakeasy. 

130 mu News; Weather. 

1.08 London Today; Weather. 

1.10 Movfee, Games and Videos. 
Reviews of The House of Spirits and 
the video release of Derate. 

1.45 MBA Basfcetbafl. Alton Byrd Intro- 
duces the game at the week. 

235 Fftic OOver Twist A runaway 

orphan is drawn into a life of crime 
rn thb adaptation of Dickens' 
famous novel George C. Scott, Tim 
Curry and Richard Charles star (TVM 
1983). 

430 ITN News and Results; Weather. 

530 London Tonight and Sport 
Weather. 

5.10 Baywatch. 

8.00 You Belt Matthew Kelly invites 
wagers from Gary Mason, Jayne Irv- 
ing. Carol Thatcher and David 
Hamilton. Charity challenges include 
a woman from Bedfordshire who 
claims she can Identify tha make, 
modal number and engine capacity 
of motorta ft es by Kstertng to the 
sound of the engines. 

7.00 Barrymore. Michael Barrymore 
meets a husband-and-wtfa harmon- 
ica (too, a 19-year-ofd circus enter- 
tainer and Rastafarian sfrowjumpor 
OUver Sfcsete. 

830 Inspector Morse. A world-famous 
opera singer visits Oxford to receive 
an honorary degree, but the cere- 
mony ends abruptly when she b 
wounded by a mystery sniper. Cul- 
ture-lover Morse (John Thaw) sets 
out to investigate - aid takas a 
more that professional Interest In 
discovering the would-be assassin’s 
identity. Sheila Gfsh guest stars. 

1030 FIN News; Weather. 

10.10 London W e a ther. 

10.15 nine Roboeop. Premiere. Paul 
Vertoevan's violent SF adventure 
about a deefleated police officer 
(Peter WeSer) who b brutaffy mur- 
dered by sadistic thugs and rebuilt 
as a prototype cyborg to combat the 
criminals overrunning Detroit. Nancy 
Alien, Romy Cox. Kurtwood Smith 
and Miguel Ferrer abo star.fi 887). 

1230 Comedy Club. 

1230 Tour of Duty- 

135 Tha Round-the-Workl Yacht Race; 
mi News HeadSnes. 

130 The Big E. 

235 Get Stuffed; ITN News Hearfflnea. 

230 New Music. 

330 Travel TraBs. 

430 American G ladia tor s. 

435 BPM.; Night Shift. 


CHANNEL4 


&00 4-Tal on View. 635 Early Morning. 1(L0Q Tony 
Jackfin'o PnH3$*8bnty Bolt. 1130 Gazzette Foot- 
bal Italia. 1200 World Tannls. 1230 pm btantie 
Conversations. 

130 Film: Raffles. David Niven plays the 
suave gen Usman jewel thief in this 
vintage comedy-thriller In which a 
burglary committed to salvage a 
friend's reputation re&its in roman- 
tic complications. Co-starring Ofrvia 
De HaviDand, Dudley Digges and 
Dame May Whitty. Part of the David 
Niven season. [1939). 

2.15 Racing from Uttoxeter. Introduced 
by Derek Thompson. Coverage of 
the 230 St Mod wen Handicap 
Chase. 3. 00 Bet With the Tote Nov- 
ices' Chase Final (t-Fcap), 135 
Tetley Bitter Midlands National 
(H'cap Chase), 4.10 Tattereafls 
Mares Only Novices' Chase Final 
(LWted H’cap). and the 4.40 Lad- 
broke Handicap hurdle. Co mm e nta ry 

by Graham Goode, Jim McGrath, 
John McCrirlck, John Tyrral and 
John Oaksey. 

535 Broofcskte. 

630 Right to Reply. Roger Bolton pres- 
ents viewers' verdicts and opinions 
on recent TV programmes. 

730 A Week in Politics. Vincent Hama 
and Andrew Rawnsby take an Irrev- 
erent look at recent political devel- 
opments; News Summary. 

830 Kingdoms in Conflict. F2m follow - 1 
big migrating north American cari- 
bou on a 2 , 000 -mfle round trip 
across the Arctic tundra, brewing 
en route and braving countless natu- 
ral hazards to complete their annual 
Journey. 

930 NYPD Blue. Sipowfcz and Martinez 
swestigate brutal murders in an 
upper-class famBy, and a talented 
scriptwriter is robbed of ltis Acad- 
emy award by a young hustler. 

1030 Don’t Forget Your Toothbrush. 
Madcap showbiz extravaganza, 
hosted by Chris Evans. 

1135 United States of Television. Laura 
Klghtilngar concludes her transatlan- 
tic smafl-screen survey with a review 
of developments in high technology 
interactive TV, programmes catering 
for the over-508 and Republican 
Party supporters, television pornog- 
raphy and the Mffltary channel. 

1136 Late Licence. Comedians Kevin 
Day end SmRey introduce tonight's 
viewing. 

1130 One Night Staid: Aten Harvey. 
1235 Vhn Cabaret 

135 Herman's Head. 

135 The Word. 

330 Joois Holland Big Band Iraida. 

430 Close. 


REGIONS 


nv rhuoms as London except at the 


1230 Movies, Games and Videos. I.Ofi AngDa 
News. 1.10 Cartoon Tow. 13) World Cup Had of 
Fame. 1 JO Mgal Mengefs IndyCsr "M. 220 The 
Magician. (TVM 19731 245 Knight Rider. 4-66 Ang- 
lia News and Sport 10-10 Angie Weatiw. 

BORDER! 

1230 COPS. 1.09 Banter Neva. 1.10 Mgtf Mto- 
MiTs InctyCar >B4. 1.40 Sal the World. 210 Rock- 
apon, 2 25 Bugs Bunny. 236 Movies. Games and 
Vtdeoe. 203 The A-Team. 239 Superstars of Wres- 
ting. 530 Border News and Weather 
CBNTKAL: 

1230 America's Top TO. 135 Cwrtnti News 1.10 
COPS. 135 Movies. Gerttea and Videos. 20S 
Knight Rider. 200 The A-Team. 400 wCW Worid- 
wfde Wanting. 4J56 Central News 530 The Cate 
Match - Goals Extra. 10.10 1 Weather. 
CHAMHELt 

1230 Holes. 135 Channel Diary. 1.10 Sal) the 
World. 240 Cartoon Time. 230 The Lady From 
Yesterday. (TVM 1065) 433 Channel News. 530 
Puffin's Ptajijce. 

OMWUlfe 

1230 Cmimw-Co. 135 Grampian HeacKnea 1.10 
Telefios. 130 Speaking Our Lar^juage. 210 Sal 
the World. 240 Mgal Mo na o Ts IndyCsr '94. 210 
stvntm asters. 255 WCW Worldwide Wrestling. 
4JK Grampian Headlines 630 Grampian News 
Review. 10.10 Grampian Weather. 

ORAMADA: 

1230 COPS. 13S Granada News 1.10 Mgal Man- 
sers IndyCar W. 1.40 Sal the World. 210 Rock- 
sport. 236 Buga Biray. 236 Movies. Games and 
Videos. 335 The A-Team. 255 Superstar* of Wras- 
tfing. 465 Granada Nm 200 Cartoon Tima. 

Kite 

1230 The Great Bong. 135 HTV News. 1.10 Sea 
the World. ^A0 Nigel Mansefl's IndyCar m. 210 
The Vengeance of Uraua. (1861) 245 The A-Team. 
330 HTV News and Sport 10.10 HTV Weather. 

HIV VMM os HTV sxBapf: 

1230 The Uttlesi Hobo. 
wm i f Pf ftff- 

1230 Hekfl. 135 Mohdtan News. 1.10 Sail the 
Wbtld. 240 Cartoon Tima. 250 The Lady From : 
Yesterday. fTVM 1985) 466 Meridian News. 1 

SCOITBtt j 

1230 Extra Time. 1.05 Scotland Today. 1.10 1 
Speaking Our Language. 1.40 Tetefios. 210 The 
Canadans. (TS61) 240 The A-Tawn. 530 Scotland 
Today 10.10 Scottish Weather. 

TYRE TEISi; 

1230 Movies, Games and Videos. 13S Tyn© Tees 
News. 1.10 The Munstara Today. 133 Wanted: 
Dead or ABve. 205 The Cofcsaua ol Rome. f1S84) 
245 Knight Rkfer. 4SS Tyne Tees Saluday 

ULSTER! 

1230 Blockbusters. 135 U1V Live Lunchtime News 
1.10 Saluday Sport. 145 The Munstara Today. 
216 Cany On Agate Doctor. fiflCfl) 336 WCW 
Worldwide Wrasflrxj. 530 UTV Live Earty Ew*^ 
Nows 535 Saturday Sport. 10.10 UTV Live Nows 


1230 Movies, Games and Videos. 136 Westeout- 
try Weekend Latest. 1.10 NBA Bastattxd. 210 
Cany On Nine. (1960) 245 Tha ArTeam. 455 
Wastoointry Weekend LatesL 


1230 Movies. Games and Vkteos. 136 Calendar 
News. 1.10 The Munstara Today. 13S Wanted: 
Dead or AIvo. 235 Tha Colossus of Roma. (1864) 
336 Knight Rider. 85S Calendar News. 




SUNDAY 



| BBC1 

H BBC2 

Si lwt 1 

II CHANNEL4 | 

| REGIONS | 


730 Penny Crayon. 740 Playdeys. 030 Blood and 
Honey. 8.15 Beaktest with Frost 215 Lead Kindly 
Light 10.00 See Heart 1030 Ungol 1046 ttallanb- 
simo. 1130 Careering Ahead. 1130 If tha Worst 
tttepws. 1140 What Shoo WeTeltiw ChBdran? 

1200 Family Affairs. Factors contributing 
to the increase in male teenage sui- 
cides, and how to cope when 
babies get colic. 

1230 CountryFle. Rural and agricultural 
news. 

1255 Weather for die Week Ahead. 

1.00 New*. 

1.03 On the Record. Political review, 
with John Humphry's. 

200 E a stEnders. 

3.00 RhiK War of the Worlds. Adapta- 
tion ol KG. Weta' classic novel 
about a Martian Invasion of Earth. 

SF tale, starring Gene Barry and Ann 
Robinson (1953). 

-420 BHsbacfc. 

0.00 The Clolhee Show. Reports on hat- 
maker Graham Smith, and a knit- 
wear company expecting hefty com- 
pensation after a copyright case 
sparked off by a Channel 4 comedy. 

S.23 Antkyuos Roodahow. From Ashford 
in Kent, where the team evaluates 
Items Including a rare 18th century 
wooden doll and an elegant triple- 
top games table. 

5.10 News. 

525 Songs of Praise. 

7.00 Honey lor Tea. Nancy manipulates 
the college system in a bid to keep 
her acadBmtcaBy challenged son at 
St Mauds. With Felicity Kendal and 
Nigel Le Vafflant. 

7.30 Pie In the Sky- Henry Is sent to look 
for a missing policeman - will he stBI 
have time to get the restaurant 
ready lor its opening night? Richard 
Griffiths stars. 

[ a. 20 Ain't Misbehavin'. Roy Clarke com- 
edy. starring Peter Davison as a 
business manager whose Ute is 
thrown into turmoil by a hard-nosed 
hairdresser. 

250 News and Weather. 

0.05 Sunday Night Cfive. The antipodean 
anchorman chats to comedian 
Lenny Henry. 

250 Mastermind. 

1020 Everyman. The life of 21 -year-old 
American Eddie Ombadykow, a 
Buddhist monk venerated as a mes- 
«ah by hte Tibetan followers. 

11.10 FBm: The Moving Target. Paul 
Newman is hired by wealthy and 
glamorous Lauren Bacall to find her 
mtsslng husband. Ughi-hearted thril- 
ler. also starring Sheftey Winters 
(19661. 

1.10 Weather. 

1.15 Close. 


6.15 Open University. 9.10 Draw Me. 935 Sbnon 
and the witch. 840 The Anteufe ol Farthing Wood. 
1036 (ncnxfibte Games. 1030 Ga*a HBL 1035 
Short Change 1130 Earthfaste 1145 The O Zone 
1230 Dr Who. 1235 pm The Fugitive. 

1.40 The Living Soap. 

200 Around Westminster . Review of the 
Mast political developments. 

230 Big Houses. Aristocratic Anglo-Irish 
fantities struggling to ma i n tain their 
hugg mansions arid stately homes. 

34)0 fibre EHrfra Ifadgan. Swedish 

romantic tragedy about a tightrope 
walker who elopes with a married 
Army officer. Pta Degermark and 
Thotnmy Berggren star (1967). (En- 
glish subtitles). 

4.25 Sarajevo: A Street Under Sege. 
Report from the devastated dty. 

6.10 Rugby SpecteL HlgMghts of 

England v Wales, and Scotland v 
France. Chris Rea and the team 
analyse yesterday's final matches In 
this year's Five Nations champion- 
ship. 

6.10 The Natival World. Jeff and Sue 
Timer's documentary focusing on 
the unique wlldHfo inhabiting a 
remote Pacific island off the coast of 
Canada's British Columbia. InducEng 
white bears and Jet-black wolves. 

"The programme reveals how this 
isolated and fragile ecosystem Is 
Increasingly coming wider threat 
from International logging compa- 
nies. 

730 The Money Programme. The finan- 
cial strain on tha Church of England 
caused by massive property specu- 
lation losses. 

7.40 Baby Monthly. Alan Slater of Exeter 
University cfscusses his research 
Into the limits of infants' vision. 

830 Mowing Pictures. Steven Spielberg 
and Francis Ford Coppola discuss 
the work of John Mfflus, writer of 
Apocalypse Now and Magnum 
Force. 

0.10 Bringing Up Baby- A report on the 
boom In chDdrsaring manuals, from 
Dr Benjamin Speck’s revolutionary 
weak In 1946 to the current glut of 
titles offering advice to parents. 

250 FSm: The Searchers. John Wayne 
stare as an American CM1 War vet- 
eran scouring the West for his kid- 
napped niece. Epic John Ford 
Western, with Natafte Wood (1956). 
11.45 Film: Pay or Die. Police officer 

Ernest Borgnine fas assigned to dean 
up Mafia activity In 1900s New Yoric. 
Gangster thriller, with Zohra Lamport 
(1960). 

1.40 Close. 


630 GMTV. 935 The Disney Chib. 10.15 Link. 

1030 Sunday Morning wltti Secombe. 1130 Morn- 
ing Worship. 1230 Scrxtay Momteg wttti Secombe. 

1230 pm CrasataSc; London Weathor. 

130 ITN News; Weather. 

1.10 Walden. Brian Walden asks shadow 
home secretary Tony Bidr. Does 
Labour now claim to be the party 
that can tackle crane? 

200 Animal Country. Sarah and Des- 
mond walk along The Wash to one 
of the RSPB’s richest bird reserves. 

230 The Sunday Match. Crystal Palace 
v Chariton Athletic. Live coverage of 
the Division One match at SeBiuret 
Park. 

535 Father DawOng Investigates. The 
reflgious sleuth is shocked to dis- 
cover a Wt man masquerading as a 
priest 

830 London Tonight; Weather. 

630 ITN News; Weather. 

530 FMnr The Man Who Wbukl Be 

King. Derring-do adventure, starring 
Sean Connery and Michael Caine as 
ex-British Army sergeants who 
deceive Afghanistan natives Into 
thinking Connery is a god (1975). 

830 Anna Lee. Anna sots out to dis- 
cover whether an old schoolfriend’s 
husband is being unfaithful and 
ends up Investigating a politician's 
professional conduct - but two mur- 
ders are committed before she b 
able to get at the truth. Starring 
Imogen Stubbe, Brian Glover and 
Adrian Edmondson, with a guest 
appearance by Sir Clement Freud. 

1030 ITN News; Weather. 

1040 London Weather. 

1245 The London Programme SpecteL 
In the fast of three in-depth pro- 
grammes, undercover reportera 
show how ethnic minorities are 
befog discriminated against as they 
search lor jobs and homes. 

1148 SaB the World. On-board action 
and news from Punta del Esto as 
the fleet reaches Uruguay. 

1215 Cue tiie Music. 

1.15 FAk And Then You Dio. Gangster 
drama charting the fast nine days in 
the He of an Irish -Canadian mobster 
who cornea into conflict with the 
Mafia. Kenneth Walsh stars (1987); 
[IN Neon Headlines. 

330 Off BssL ITN New* Heo dB n es . 

330 Snooker: The European League. 

530 Dfating fan Franco. 


RADIO 


635 Earty Morning. 945 The Lons Ranger. 10.15 

Saved by the Bed. 1045 Ptanet of the Apes. 1146 

Little House on the Prasie. 

1245 You're tiie Top. Profile of composer 
and lyricist Cole Porter. 

145 Football Itafia. Action from Juventus 
v Parma. Commentary by Peter 
BrackJey, Kenneth Woistenholme 
and James Richardson. 

430 Ladakh the Forbidden WHdoeness. 
FBm- maker Narash Bed's documen- 
tary focusing on the wddnfe of this 
Inhospitable Honalayan region. 

535 Charade. Animated Superman 
spoof. 

5.10 News Summary, Weathor. 

5.15 Serious Money. In the wake of the 
Detroit summit on Jobs, Sheena 
McDonald presents a discussion 
about the future of work. 

6.00 Movtewatch. Wolverhampton rine- 
magoere review Sister Act 11, Beeth- 
oven’s Second and Prince of 
Shadows. Plus, Interviews with Sha- 
ron Stone and Ray Uotte. 

830 The Cosby Show. 

730 Encounters. Documentary following 
attempts by a group of British Chris- 
tians to improve medical services fo 
the remote Fly River Delta, Papua 
New Guinea, by taking two hover- 
craft to the jungle hospital at Balfma 
Struggling to overcome the humidity 
and strong winds, the team was also 
forced to contend with abnormally 
high tides and the threat of attack 
by huge man-eating crocodiles. 

830 The Qoldrtng AucflL Mary Gokfatng 
examines Britain's thriving music 
Industry, and asks if It can continue 
to prosper in an unstable market. 

Last In series. 

930 FMns The Last Tycoon. A studio 
executive’s life is thrown into turmoil 
when he falls for his dead wife's 
double. Romantic drama sat in the 
1930s, staring Robert De Niro 
C1976). 

1130 Kafka. Oscar -winning director Zbig 
Rybczynaki's bizarre film portrait of 
the Czech writer whose works 
Include The Trial and Metamorpho- 
sis. 

1230 Fane The Rite. A tyrannical Judge 
subjects three actors to relentless 
interrogation over a controversial 
performance. Courtroom tframa, 
saarrtng Ingrid Thuffn aid Erik Hefl 
(1970). 

130 Close. 


nv reoors as lomdon except at the 


imi it. 

1230 Food Glide. 1255 Antfa News. 200 Wish 
YOU Ware Here? 230 An01a Sport SpecteL 530 
BuBaeya. 5L30 Animal Coufty. 630 AngSa News 
on Sunday 1040 Angfia Waettwr. 1046 Mssrwn. 

CENTRAL: 

1230 Contra) Newsweek. 1256 Central News 200 
It's You- Shout 235 Take 15. 250 The Central 
Match - Live. 5.15 Dhosews. 546 Hit the Town. 
6.15 Central News 1040 Local WeaOier. 1045 CM 
Eastwood: Tha Man From Malposo. 11J55 Murder. 
She Wrote. 

CHANNEL: 

1230 Reflections. 1235 Rendaz-Vous Dimancha. 
1260 TetajocnaL 230 The pwr. 235 The Listings. 
230 Suiday Sport Live! 530 Country Ways. 5.15 
Wish You Were Hem? 546 Animal County- 8.15 
Channel News. 1045 CM Eastwood: The Man 
From Malpaso. 1135 The Pier. 

GRAMPIAN: 

1130 Deanamakf Gofedeadias. 1145 Eton. 1230 
Gankra'a tSary. 1266 Grampian Heedfawa. 230 
Highway to Heaven. 330 Zorro. 330 Movies. 
Games and Videos. 430 &nri Tak. 4.16 Animal 
Country- 445 Famous For Fifteen. 630 Scoteport. 
6.15 Grampian Headlines 1040 Grampian Weather, 

1045 Prisoner Cel Block H. 1140 Living and 
Growing tor AdUta. 

GRANADA: 

1236 Granada On Suiday. 1266 Granada News 
200 Tha Granada March - Update 330 The invisi- 
ble Men. fTVM 1076) 430 Father Dowtng Investi- 
gates. 5.15 Coron a tion Street 8.15 Granada Nows 

1046 C a tox a Mon. 11.15 Prisoner Cell Block H. 
HIV: 

1225 MaradHh Or Sunday. 1266 HTV News. 200 
H7V Newsweek. 230 World Cup Hell of Fame. 245 
The Meet Much. 5.15 Hghwsy to Heaven. 6.15 
HIV News. 1040 HTV Weather. 1045 CM East- 
wood: The Man From Malpaso. 1146 Wanted: 
Deed or Aflvs. 

1230 Sevan Days. 1250 Mafidan News. 200 The 
Pier. 228 Tha LeUngs. 230 Sunday Sport Lbal 
630 Country Ways. 5.15 Wbh You Were Hare? 
646 Animal Country. 0.15 Meridian News. 10145 
CM Eastwood: The Man From Malpoao. 1135 The 


1130 DearamaJd Gafadeachas. 1145 Scon. 1230 
WemysB Bay 902101. 1255 Scotland Today. 230 
Before Winter Comes. (1968) 430 Scottish Pass- 
port 430 Coach. 530 Scotsport. 8.15 Scotland 
Today 1040 Scottish Weather. 1045 Budgies 
Repaired Satudays: A Wake for Bud NeA. 1146 
Crodbh Nan UbhaL 
TYW TEES: 

1226 Newsweek. 1235 Tyne Tees New. 230 
Yesterday's Heroes. 230 Tha Tyne Tees Match. 
530 Tyne Tees Weekend. 1048 CM Eastwood: 
The Man from Malpaso. 1136 Urban AngeL 


1230 Westcountry Update. 1236 Weatcountry 
Weekend LatesL 200 Safl the World. 230 West- 
country Cameos. 240 WBd In the Country. (1961) 
430 Getaways. 530 Lite Goes On. 6.15 Weetooun- 
try Weekend LatesL 1046 The Lost Gardena of 
Htrifoan. 11.15 Prisoner Cel Hoc* H. 


1226 The Uttlesi Hobo. 1260 Calendar News. 230 
Highway to Heaven. 235 Sheena: Queen of the 
Jungle. (1984) 530 Calendar News and Weather 
1040 Local Weather. 10 l 46 CM Eastwood: The 
Man from Mafpaso. 1135 Urbai Angel 


BBC RADIO 2 

630 ScsoUt BaroL 835 Brian 
Matthew. 10.00 Sally 
O'Sullivan. 12.00 Hayes on 
Saluday. 130 I'm Sorry I 
Hwen j a Ous. 200 Ronnie 
ffllon. 200 Steve Ftaco. 430 
Parodhra. 530 Ghana 2. 530 
Nltt Barractough. 8.00 Nell 
SeoaKa. 730 At Home With. 
T.30 The Magic of the 
Musicals. 630 David Jacobs. 
HUM The Arts Programme. 
1265 Ronrue Hilton. 1.00 
Cturleo Nova 4-00 Su|alo 
Bara 


BBC RADIO 3 

630 Open UMveraiy: Issues tn 
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Success of a lifetime for 
Karpov, defeat and controversy 
for Kasparov - these were the 
features of this week's Linares 
tournament, the strongest 
ever. 

Scores were Karpov 11/13. 
Kasparov and Shirov 8%, Bar- 
eev Th, Kramnik and Lautier 7, 
with Judit Polgar next to last 
on 4. Karpov's tournament rat- 
ing was a record 2,975, while 
Kasparov lost a Giuoco Piano 
to Lautier where the French- 
man, playing black, queened a 
pawn in 21 moves. 

Earlier, Polgar claimed Kas- 
parov placed his knight on a 
losing square against her, 
released his band, then moved 
the knight to safety. Polgar 
was too stunned to protest 
immediately and the watching 
arbiter failed to notice, so the 
result stood. 

Video film stills confirmed 
that Kasparov’s hand bad quit 
the knight for about a quarter 
of a second. 

Meanwhile, here is the most 
brilliant game at Linares. 

V. Topalov, White; E. Bar- 
eev, Black. 

1 e4 efi 2 d4 d5 3 Nc3 NflB 4 
BgS dxe4 5 Nxe4 Be7 6 BxfG 
BxlB 7 c3 Nd7 8 Qc2 e5 9 dxe5? 
9 0-0-0 is consistent, starting a 
race of mutual attacks. 


Nxe5 10 f4 Ngfi 11 g3 0-0 12 
Bd3 Qd5 13 a3 Nxf4! Refuting 
White's profusion of pawn 
moves. If now 14 gxf4 Bh4+ 15 
Kfl {5 regains material. 

1-1 Nxf6+ gxf6 15 Bxh7+ Kg7 
16 Qc4 ReS! 17 QxeS Bf5! A 
double rook sacrifice to force 
mate, a rarity in modern GM 
chess. 18 Qxa8 Qe4+ 19 K12 
Qg2+ 20 Ke3 Nd5+ 21 Kd4 
Qd2+ 22 Kc5 Qe3+ 23 Kc4 
Nb6+ 24 Resigns If 24 Kb4 
Qe7+ 25 Kb3 Qefii- 26 Kb4 Qd6+ 
27 Kb3 Qd5+ 28 Kb4 Qc4t Is 
one way to mate. 



A 

£) 

s 

1 % 

X 

Ai 

A 1 

i 

ii * 

£l £ 

a_ 

1 

& 


Chess No. 2013 

White mates in two moves 
against any defence (by A. 
WillmotL The Problemist 19941. 
Solution Page XX 


Leonard Barden 


BRIDGE 


My hand today comes from 
rubber bridge: 

N 

A Q J 2 
¥ Q73 

+ 963 
A Q 7 4 2 
W E 

4 A 9 87 A 5 

¥ 9 8 6 V 10 5 4 

4 K Q 10 8 + A 7 5 4 

4 10 8 A J 9 6 5 3 

S 

4 K 10 6 4 3 
V A K J2 
4 J 2 
LAE 

At love-all. South was dealer 
and opened the bidding with 
one spade. North replied with 
one no-trump and South re-bid 
three hearts. North gave pri- 
mary preference with three 
spades, and four spades from 
South concluded the auction. 

The opening Lead was the 
diamond king. The queen fol- 
lowed and South ruffed the 
third diamond in hand- A low 
trump ran to the queen and 
the knave followed. East show- 
ing out. West, who started with 
four spades to the ace, allowed 
the knave to hold - this is rou- 


tine defence. In the hope that 
West had no more diamonds, 
declarer played another round 
of spades. West won. forced 
declarer with his last diamond 
and his nine of spades, now 
master, defeated the contract. 

Could South do better? Yes. 
His mistake was in playing 
dummy's spade knave. He 
should return the two to his 10. 
West holds up. but now South 
cashes ace. king of clubs and 
ace, king, queen of hearts - the 
even break must be assumed. 
In the three-card ending, West 
has ace, nine of spades and dia- 
mond 10; dummy has spade 
knave and queen and seven of 
clubs; while declarer holds 
king, six of spades and the 
knave of hearts. 

South leads dummy's seven 
of clubs and ruffs with his 
spade king This leaves West 
helpless. If he throws his dia- 
mond, South leads his heart to 
score dummy’s spade en pas- 
sant. If he over-ruffs and 
returns a trump, dummy 
makes the last two tricks; if he 
returns the diamond. South 
cross-ruffs his way home. 

E.P.C. Cotter 


CROSSWORD 

No. 8,408 Set by CINEPHILE 

A prize of a classic Pelikan SouverOn 900 fountain pen, inscribed with the 
winner’s name for the first correct solution opened and five runner-up 
prizes of £35 PetUtan vouchers. Solutions by Wednesday March 30. marked 
Crossword 8,408 on the envelope, to the Financial Times, Number One 
Southwark Bridge, London SBl 9HL. Solution on Saturday April 2 



ACROSS 

1 The spirit of monasticism? 

(ID 

7, 9 Two spirits of setter for 

gamp (33) 

10 The spirit of a true vagrant 
after money (9) 

11 A number of things, possibly 
ten. with rigid conditions (9i 

12 Strike for hoL drink (5) 

13 Be a rival to a bird that's 
dead? (7) 

16, 18 Appland something catch- 
ing? Poppycock! (8) 

20 Compunction about code (7) 

23 Where the poor man's out on 
the Spanish front (5i 

24 Transport for a hundred at 
Easter, perhaps (6,3) 

26 Rise to vote aye? (9.) 

27, 28 Parliamentary official 
bom to be spoilt child, as 
they say? (5,3) 

29 Solid figure of head buffeted 
in raging torrent (11) 

DOWN 

1 Dries fruit in bed as food for 
captive (8> 

Solution 8,407 


□□□SIDQQS DimHOQB 

QQDDSQQC1 

□qhgiq aarannnEEB 

□ □□Lsoaacj 
□□□□□qiicjd DQQnn 

□ □ □ q □ d □ 
B0Q000 QEHUnOEB 

S □ 0 B H m 

oaanaQo nnanaa 

□ □ □ b n h b 

HBQBQ □□□□□oiann 

□ □nnnQQn 
□□HaomBBB DDLUBli] 

□ BQQISLJDIl 

aninaiDQ Enciionjiania 


2 Plenty of commonsense with- 
out repeated hesitation (S) 

3 Senior member needs tonic 
for craving (5) 

4 East end er (not North, East! 
has a squint (71 

5 Amin to be put back in 
charge? That's crazy (7> 

6 Ample cost provides medium 
protection iflr 

7 Vegetables for party i5> 

8 A cipher, not including 
expression of disgust (5; 

14 Starch is a weapon to cheer 
19) 

16 Give powers to president in 
place of critic (8) 

17 Hat has children and rela- 
tions (8) 

19 Danger signal in part of film 
to show what will happen (7) 

20 Do a turn, otherwise a circu- 
lar construction (7) 

21 Modify one’s anger? (8) 

22 A vulgar giri in US, not at 
home (6) 

26 List for pool, water etc 75) 
Solution 8,396 


□nnanaciQ osonnin 
annnramoo 
□□HHO SnQ0HS3H0B 
amDQQQQG] 
□□□□□□BHCI OQ0130 

□ □□BOD □ 
□□□□□□ mniaoEEE 

□ □ a EDO 

□□□□□□□ QQEBQD 
a HQBQHn 
□DDOO □□□□nODDE 
aotnaaHHa 
□□□□□□UQO BBQQB 

□ □□HQQQG 

aanaae oanaaraoD 


WINNERS 8,398: ILK. O'Keeffe, London NW3; G.D. Bates, Temple 
Sowerby, Cumbria; Mrs L.D. Benoit. Maidstone. Kent S. Tullah. 
Sutton Coldfield, v?. Midlands; I.J. Whitting. Bickley, Rent: GJX 
Young, Northolt, Middlesex. 




WEEKEND FT 


We all have 
skeletons in onr 

closet- In the case of 
the people of 
France, there are 
78,000 or them. 
That is the esti- 
mated number of 
French Jews 
rounded up and 
sent by their Government to be 
murdered in Nazi concentration 
camps. At least seven more French 
Jews met a different fate. They are 
the people for whose execution 
Pierre Touvier Is now on trial at 
Versailles. 

“Crimes against humanity'’’ is on 
the charge sheet, and the 78-year- 
old former intelligence chief of the 
Milice, the Vichy regime’s pro-Nazi 
paramilitary force, is the first 
Frenchman to be so charged. 

You might wonder, as I do, why 
Touvier is the only Frenchman 
against whom such a charge could 
be levelled. 


FINANCIAL TIMES WEEKEND MV*™* io/maRCH 20 1994. 


Deadly rattle of skeletons 

Dominic Lawson ponders the ugly question of wartime collaboration 


Yon might also wonder why Too- 
vier has had to wait SO years for 
his trial. The answer Is that he was 
sheltered throughout the interven- 
ing years by various outposts of the 
Roman Catholic Church in France 
- a skeleton In the cloister, if ever 
there was one. But the people of 
France do not, for understandable 
reasons, like to dwell on such 
embarrassing memories. Instead 
they prefer to carry on preparing 
their celebrations for the 50th anni- 
versary of D-Day in Jane, and in 
particular, snob the Germans by 
not inviting them to the party. 

Last week the mayor of Caen, 
who had broken ranks by inviting 
Helmut Kohl, the German chancel- 


lor. to their local celebration of the 
great Day, was ordered by Paris to 
withdraw the invitation. Having 
the Germans around would be an 
unfortunate reminder of just how 
ambiguous was the relationship 
between the French people and the 
Nazi invader. 

The resulting spat in the Franco- 
German relationship flUs os in 
England with feelings of deep satis- 
faction. If we were German we 
might call It Schadenfreude, joy at 
the discomfort of others. But as we 
are English, we call it Remember- 
ing the War. It was, after all. Our 
Finest Hour. 

We have no skeletons in our 
closet, unless yon are going to be 


fussy and dredge up the fire-bomb- 
ing of Dresden. We, thanks princi- 
pally to Hitler’s decision to open a 
second front against the Soviet 
Union, never had to Race outright 
German invasion. Doubtless, If we 
had, we would have fought them on 
the beaches. And I believe that, if 
the worst came, the British people 
would have fought the Nazi invader 
s treet by street. I cannot imagine 
that a British Government would 
have handed London over to the 
enemy, without a shot being fired, 
in the way the French did Paris. 

But if we had been overrun by 
the Nazis, would we then have been 
ruled by an assiduously collabora- 
tionist regime, along Vichy lines? 


Would we, in other words, have 
had our own Tonviers? It is inter- 
esting bow quickly you can reduce 
a civilised London dinner party in 
shooting and walk-onts by suggest- 
ing that this is what would, have 
happened in Britain. 

Discussions - or rather, ferocious 
arguments - about what would 
have happened to British Jews, 
usually disintegrate Into competing 
hypotheses. But, there is no need to 
hypothesise. 

Last year, under the 50-year rale, 
documents were released which 
showed how occupied Guernsey col- 
laborated with the Nazi invader’s 
solution to the Jewish problem. 
The papers charted British offi- 


cials’ collusion in identifying three 
Jewesses who were subsequently 
deported and perished in Ausch- 
witz- Last week it was the turn of 
the Jersey archives to be released. 

Most of the papers relating to the 
period of occupation had been mys- 
teriously stolen. But those that 
remained paint a depressfngly 
familiar pattern, with officials 
assisting their German governors 
with the identification of the Jew- 
ish population. . 

One document, from a British 
company, reports that: “As far as 
tiie Channel Islands are concerned, 
I can definitely state that no Jew. 
male or female, is employed by the 
company, nor had any Jew been so 
employed since the Jersey branch 
was opened.” 

Perhaps the company was simply 
trying to protect its Jewish employ- 
ees. What would you have done? 

■ Dominic Lawson is editor of The 


Private View / Christian Tyler 


T here is a sportswear 
shop in Calais called 
’’Athlete's Foot". I was 
thinking of it last week 
In Paris on my way to 
the Academic franpaise, that vener- 
able custodian of the French lan- 
guage, when I passed a marine 
equipment shop called “Nauti 
Store”. 

As 1 crossed the Seine in the 
spring sunshine, pondering the Bal- 
ladur government’s announcement 
of a language bill with stiffer penal- 
ties to enforce the public use of 
French, I was nearly run over by a 
breakdown van. Painted in Urge 
letters on its side were the words 
“Yellow Cad”. 

The perpetual secretary of the 
Acad&nie, its commanding officer 
in the war against linguistic corrup- 
tion. is the writer and anglaphile 
Maurice Druon. 

“Je vats cona mn ce r a tors par tm 
statement" he said as he ushered 
me with a flourish of Gallic courte- 
sies into his elegant cabinet room. 
'Tm a great admirer of the style of 
Gibbon and Churchill. Bon. Vbild 
comment je cous accueitle ." 

Druon does not. God forbid, speak 
franglais. He is a former minister of 


The high priest of pure French 


first volume of our dictionary we 
have 5,000 new words? In the former 
edition, of 1835, there were about 
35,000 words. Our new edition (it 
has reached the word “enzyme") 
will have at least 50,000 words, 
probably more - that is, 15.000 
accepted new ones.” 

He got up and walked about “Do 
you play golf?" he said, f said No. 
“When people propose oiselet for 
‘birdie’ or. I don't know, obstacle de 
sable for 'bunker' 1 raise my shoul- 
ders and 1 say ‘Let the expression 
pass! Foutez-moi la p a ix!' Because 
golf terms are English and we have 
adopted them." 

The academy had even accepted 
anglicisms such as “tennis" which 
derived from the French - as in 
tenez! 

To recognise words for which 
there is no substitute is one thing. I 
persisted. To legislate for the con- 
trol of language seems to me quite 
another, extraordinary thing . 

“Sir. You have been informed by 
the French press, which is very 
badly informed.” He gave his 
wheezy, smoker's laugh. “It's not a 
law on the French language, it’s a 
law on the obligation of using 
French in various areas.” 


The French government is introducing a 
new law to protect the language. 
Maurice Druon , secretary of the Academie 
frangaise , is an anglophile who says 
English, too, is being corrupted 


culture, member of the French and 
European parliaments and a winner 
of the Prix Goncourt He was with 
de Gaulle’s Free French in London 
during the second world war. 

No. he switches with virtuous 
ease between the two tongues, 
according to the mood of the 
moment In his own language he is 
declamatory, rolling the words 
around his tongue with the relish of 
a wine-taster. In English he has the 
upper-class drawl of the clubman 
(he is a member of the Garrick and 
the Savile), and makes redundant 
apologies for the poverty of his syn- 
tax and pronunciation. 

We sat in matching armchairs 
with aged leather seats. The first 
“Immortals", the founder members 
of the academy set up by Cardinal 
Richelieu in 1635 as a supreme 
court to decide the rules of French, 
looked down from the walls. 

“A cup of tea, perhaps?” said the 
perpetual secretory. 

A butler arrived and set down a 
silver tray. 1 began by asking: What, 
really, is the threat? Isn't the acade- 
my’s attempt to preserve the lan- 
guage culturally stifling? 

Druon sighed. “I answer in 
another way. Z much regret that 
you have not an acad£mie angiaise, 
a state Institution to watch over 
your language.” 

As for the academy's work, he 
continued: “Did that stop the 
Enlightenment, the philosophies of 
the 18th century? Did it stop the 
industrial age, the discoveries of the 
19th century? Did that stop Pasteur? 
Did it stop Claude Bernard, or - 
closer to us - the Curies or the Due 
de BrogUe?" 

But aren’t things different now? 
Perhaps French is becoming fossi- 
lised... 

“Fossilised?" Druon stared with 
disbelief. “Fossilised? When in the 


Yet if it suits a firm to use 
English internally and that facili- 
tates business, why not? 

“Why use a foreign language if 
the user is not an English speaker?” 
In some cases, he added, it could 
even be dangerous - if, for example, 
technical instruction manuals were 
not in French. 

I agreed. But there was a time, I 
said, when the whole of Europe 
used Latin for certain purposes. 
Today we clearly need a lingua 
franca and . . . 

“But exactly! You have the 
French language!” He was trium- 
phant 

Isn’t English the lingua franca 
now? 

“Listen. There we are going to 
have a difference of opinion. For 
one thing, the English language is 
no longer what It was. What is 
sprayed all over the world is not 
really English. It’s American. It’s 
not the English tongue. It’s a dollar 
tongue." 

But the Latin spoken all over 
Europe was dog Lathi, not the Latin 
of Tacitus or Cicero. 

’’Certainly. That’s why it has 
been replaced by the French!” 

If this bastard English is useful, 
why should we not speak it where 
it’s appropriate? 

“Where is this notion of useful? 
It's useful in commerce, in advertis- 
ing, useful in money. It is not useful 
for the mind.” 

The academy has about 40 mem- 
bers - usually septuagenarians - of 
whom Maurice Druon, of course, is 
one. (There are also two women 
now). I stuck out my neck. 

Why should the language of the 
majority, I asked, be determined by 
the sentiment of an old minority? 

“It's not an old minority. It’s an 
old majority." 

But why shook! they have this 



power? 

“Sir. Words are a means of 
exchange. That’s a currency, and 
bad currency .. . comment dire, eftas- 
se ... drives out, the good. We are 
trying to keep a good currency. 
That’s why we accept a lot of new 
words if they are In common usage. 
Don’t think we are the enemy of 
English . . 

r read that people refuse to 
employ the gallicisms that have 
been created for them. Why not let 
the market decide what is most 
appropriate? 


“If you let in the market, you let 
hi the jungle." 

Can you resist the market in this 
age? 

“Bum stir. Bien sitr. One can dis- 
suade. Monsieur, we are there to 
give the sense of sin. Commit it by 
all means, but know that you are 
committing a sin." 

Isn’t that bad law. like the law 
against smoking in bars, which I 
hear is widely disregarded? 

“Listen. I am smoker, but this is 
another matter. It goes much fur- 
ther. The language of a people is its 


soul. IT you love your country, you 
must love your language. It is the 
fu n da m ent a l intellectual patrimony, 
it is what determines, to a large 
extent, your identity. And as perpet- 
ual secretory of the Acad&mie Fran- 
caise. It is I who am in the van- 
guard.” 

But, of necessity, behind the rest 
of the country? 

“Mats, NoT 

I compared the Acati&mie Fran- 
paise with the Vatican, and Druon 
talked of the four great institutions 
of Europe before the first world 


O b lord." sighed the 
young minister as be 
scanned the headlines in 
the tabloids: “1 suppose 
one of these days I will have to 
confess I lost my virginity to a mar- 
ried woman”. 

Yes, it has been another of those 
weeks. Another establishment sex 
«yandal and another resignation. 

The News of the World, a Sunday 
tabloid newspaper, started the 
moral witchhunt with its disclo- 
sures three months ago that a mid- 
dle-ranking minister had fathered 
an illegitimate child. This week it 
claimed a bigger scalp - that of 
armed forces chief of staff and mar- 
shal of the Royal Air Force Sir 
peter Harding. 

In between there has been a spate 
of these so-called scandals. As 
media lights have been shone Into 
dark corners of the private lives of 
the prominent, the results have fre- 
quently been farcical. One Tory MP 
was obliged to confess publicly he 
had shared a French hotel bed with 
a male Mend - for no other reason 


Truth of the Matter 


Fleet Street’s back to basics 

Good old British hypocrisy over sex has returned , says Philip Stephens 


than to save a few francs. 

But there has also been a more 
unsettling dimension. The revela- 
tions have not been confined to 
what was once seen as the grubbier 
end of the tabloid press. The 
so-called quality papers and the 
electronic media have picked up 
the same stories with gusto. Pruri- 
ence and the public interest have 
often been treated as inseparable. 

For those of you who have spent 
the week on a saner planet. Sir 
Peter’s misdemeanour was straight- 
forward. A married man, he fell for 
an excitingly-dressed woman by die 
name of Hiss Bienvenida Perez- 
Bianco. 


She now calls herself Lady Buck, 
a title bestowed through her brief 
marriage to the former Tory HP Sir 
Anthony Back. Not much is worth 
saying about Lady Bode save that 
she claims to be of Spanish extrac- 
tion, is m her middle 30s, dresses 
as if she is 20 years younger and 
has a penchant for influential men 
30 years older. 

But Sir Peter fell for her. She 
took her story and his Intimate 
love letters to the Sunday newspa- 
per. which added a “security" 
dimension to justify the invasion 
into his private life. She pocketed 
the money. He resigned. 

That, you might say, should be 


the end of 1L But it will not be. 
Newspapers, battered by recession 
and a secular decline in readership, 
will not to let this one go. 

Sex sells newspapers. Sex in high 
places sells even more. When there 
is no alleged security angle, John 
Major's ill-fated back-to-bastcs ini- 
tiative provides sufficient cover. 

Ministers insist children in the 
classroom are taught the difference 
between right and wrong. So the 
media reserves a right to highlight 
occasions when the politicians are 
not so discerning. 

Bat there has been another big 
change. Previously, the broadsheet 
press would have ignored most of 


the recent scandals. The Daily Tele- 
graph would have tucked the odd 
piece on page three alongside 
reports of the more lurid cases 
before the courts. The Times would 
have remained aloof. Hie Guardian 
would have slipped in the odd 
detail through an account of what 
the tabloids were up to. Now the 
broadsheets vie with the rest 

The Telegraph, for example, 
began this week with colour photo- 
graphs of Sir Peter and his par- 
amour on the front page. An edito- 
rial condemning the revelations as 
“gutter journalism at its rankest” 
looked misplaced. 

Nor is televirion and radio news 


war. The one that had not survived, 
he said, was the general staff of the 
German army. I did not understand 
the French phrase so the ocadtoni- 
cien went to the bookshelf and 
plucked out Harrap’s dictionary, 
screwing a monocle into his eye to 
read the entry for me. 

As a writer (he told me be had 
. sold 11m copies otf his books in Rus- 
sia alone) Druon is concerned not 
just with words, but with syntax. 
And the Anglo-Saxons, he said, 
were losing control of their syntax. 

Do you mean that thought itself 
suffers when syntax goes? 

“Yes. Ah. yes." 

And political ideas will became 
more banal? 

“The political question is the abil- 
ity of the new generations to con- 
struct and express their thought in 
proper sentences." The importance 
of the message impelled him back 
into French: “You cannot dissociate 
words from thoughts. And it’s to 
preserve this quality of the focmar 
tion of ideas that we conserve 
French, a language which is ana- 
lytic, precise arid dear. We don’t 
want it to lose its clarity. 

“If we get to the point of using 
faig* En glish words in French, that 
is the height of degradation. 
Another idea: it is not good for the 
mrid, for humanity, to have only 
one language, because that lan- 
guage will not keep itself mire." 

Isn’t that to overstate what’s hap- 
pening? 

“Wait A sole language, a unifor- 
mity, a pidgin angtoricam spreading 
over the planet It’s very bad. We 
n eed ri iffp rPTit lang ua g es. If there is 

no difference there is no melange or 
confrontation of cultures. New ideas 
will not be bom." 

Can we not have horizontal 
boundaries between languages - 
the peasant speaking his patois, the 
bourgeois his demotic, the interna- 
tional civil servant speaking 
English? Tm no more in agreement 
with you. The human spirit must 
have a language that transcends all 
levels and specialities. 

“Look, Fm an old Anglophile. I 
should not want English and 
French to be enemies, but allies. 
Because they are both carriers by 
nature of the values of liberty and 
dignify. So we needn't deprive our- 
selves erf either." 

Most countries, I said, manage 
without linguistic laws and acade- 
mies. What makes France so differ- 
ent? 

“ Aft, pa! Perhaps because we are 
the oldest nation in the world with 
tire sentiment of nationhood. Also 
because the instrument we have 
forged, the linguistic instrument, 
became the lingua franca of the 
18th and 19th centuries. All the 
countries of Europe, Great Britain 
excepted, were intellectual prov- 
inces of France. But this is because 
of the qualify of our language.” 

I tried one last shot it Iras fewer 
words. I believe. 

“Dare I say, you have less syntax. 
And besides - I don’t want to be 
disagreeable — If Rn gifah has had 
some success it is because it is the 
easiest language to speak' badly." 
He gave another wheezy chuckle. 

That, perhaps, is its great advan- 
tage, I said. But you say English, 
too, needs preserving? 

“Yes.” 

What shall we lose if we don’t 
create an Acad&nie angiaise? The 
power of literary expression? 

“No, your sod.” 

The perpetual secretary laughed. 
There was no reply. 


Back 

to 

save us 

Michael 

Thompson-Noel 


Dead Hollywood 
stars will return 
from the grave if 
developments in re- 
animation technol- 
ogy bear fruit. 
According to a 
recent news story. 

“Using raw data cul- 
led from old films ami the latest 
digital computer animation. Holly- 
wood scientists are perfecting [tech- 
niques] to create synthetic actors 
who look, sound and move just like 
the real thing.” 

Quite soon, celluloid legends such 
as Vivien Leigh and James Dean 
could be starring in new films, 
alongside living actors. “The era 
may be approaching when old act- 
ors neither fade away nor die," said 
the news story, “but star time and 
time again, long alter their mortal 
remains have turned to dust. 
Instead of appearing in person at 
the Oscar ceremonies, they could 
send along computer images to 
weep and thank and celebrate. No 
one would know the difference." 

One of the nanum by which the 
new technique is known is Live- 
Synchro. Live-Synchro featured in 
Hawks & Handsaws two years ago, 
in a column which also anticipated 
the debut of “aniroatronic actors - 
humanoids, robots - who will play 
any role, from buffoon to sex siren, 
at a mlUifraction of the [normal] 
fee." 

Anticipated is a bit cheeky. all I 
was really doing was showing that I 
possessed a much-thumbed copy of 
July 20, 2019: Ufa in the 21st Cen- 
tury, by Arthur C. Clarke, the 
famous science fiction, writer. 

What no one yet knows is that 
these techniques, Live-Synchro and 
animatronics, work in reverse. 

I discovered this on Wednesday 
when summoned to 10 Downing 
! Street for a late-night interview 


HAWKS 

— & — 
HANDSAWS 


immune. Where once the bulletins 
would report such incidents only if 
and when someone resigned, they 
now fah* their lead from t h fl tab- 
loids. Prophecies of resignations 
and assertions of public interest 
become self-fulfilling. 

Bat something else is going on. 
This is more than a bout of mid- 
winter madness fuelled by shrewd 
commercial judgment. Politicians 
and generals have been having 
affairs since time immemorial. 
When an MP died suddenly a few 
years ago in the arms of his mis- 
tress not a word of the circum- 
stances appeared in print 

The opinion polls tell us that the 
moral pnritanism ' of “back to 
basics” has caught a popular mood. 
The marketing men are equally cer- 
tain that the public appetite for 
salacious stories, and contempt for 
the establishment, has never been 


The two are reconciled only with 
one rattier sad explanation. The 
British penchant for hypocrisy has 
returned with a vengeance. 


with John Major, the prime minis- 
ter of Britain- 1 hurried there speed- 
ily. Soon I was enjoying, together 
with ti p* prime minister, a splendid 
supper of bacon, eggs, sausages, 
tomatoes, mushrooms and baked 
beans. 

An aide had explained that 1 am 
now the only journalist Major will 
see, so I started off politely, hiding 
my time. 

“Economy recovering nicely. 
John, give or take a sixmonth?" 

“Indeed it is, Michael. It is recov- 
ering really nicely, given that my 
administration has worked jolly 
hard to achieve the conditions req- 
uisite to sustainable long-term 
growth free of the harrowing bug- 
bear of rampant Inflation. " 

“Trade rows under control?" 

“Trade rows under control." 

“Ditto Tory sex scandals V 

“Ditto Tbry sex scandals." 

It was time to raise the tempo. 

“I am surprised, John,'’ I said, 
“that you haven’t gone screaming 
mad, or tried to harm yourself, 
given the ferocity of the criticism 
heaped upon you. Not this century 
has the leader of a democracy been 
vilified as you have. Yet you just 
keep smiling. The latest organisa- 
tion to demonise you is Amnesty 
Internationa], which excoriates you 
for selling 40 Hawk military jets to 
Indonesia. 

“■For God’s sake,' says Amnesty, 
’what kind of morality is it where 
sleeping with an actress can get a 
minister hounded from office, but 
it’s OE to sell lethal weapons with- 
out legal guarantees that they won't 
he used to kill innocent people.’ 

“How do you handle that. John? 
How do you keep your sanity? It is 
almost as though" - I speared a 
reluctant sausage - “you were pro- 
grammed, somehow ... as though 
you were an Image from the middle 
of the next century sent to serve as 
a l ight n ing conductor for all our 
troubles and pain.” 

“Later," said Major. 

“Pardon?” 

“2082. It’s called Reverse Live- 
Synchro, or RL-S. I am indeed a 
projection. In real life. 1 am a low- 
ranking official in the fish eries min- 
istry of the government of Eurasia 
from 2082. I am Norwegian, as it 
happens. Married, two children. 
Rather good at golf. Thanks to 
RL-S, I have been projected back- 
wards in time to act, as you put it, 
like a lightning conductor, to head 
off the catastrophe facing Britain - 
invasion by Malaysia. 

“That Is scheduled to happen in 
four years’ time. I am here to stop 
it. The downfall of Margaret 
Thatcher was a technological feat 
engineered by our scientists. I was 
sent as replacement. My supreme 
incompetence is a clever Eurasian 
smokescreen. I am so incompetent 
that the Malaysians will take pity 
on us and cancel the invasion. At 
least, that’s the hope.” 

“I am flabbergasted," f said. “Why 
have you never told us that you are 
a synchroton sent to save us?” 

“Because." beamed the image, 
“no one's ever asked."